PL 104-208 Sec.658 Gun Ban For Individuals Convicted of a Misdemeanor Crime of Domestic Violence

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009

*Public Law 104–208
104th Congress
An Act
Making omnibus consolidated appropriations for the fiscal year ending September
30, 1997, and for other purposes.

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

Sept. 30, 1996
[H.R. 3610]
Omnibus
Consolidated
Appropriations
Act, 1997.

That the following sums are appropriated, out of any money in
the Treasury not otherwise appropriated, for the several departments, agencies, corporations and other organizational units of the
Government for the fiscal year 1997, and for other purposes, namely:
TITLE I—OMNIBUS APPROPRIATIONS
Sec. 101. (a) For programs, projects or activities in the Departments of Commerce, Justice, and State, the Judiciary, and Related
Agencies Appropriations Act, 1997, provided as follows, to be effective as if it had been enacted into law as the regular appropriations
Act:
AN ACT
Making appropriations for the Departments of Commerce, Justice, and State, the
Judiciary, and related agencies for the fiscal year ending September 30, 1997, and
for other purposes.

TITLE I—DEPARTMENT OF JUSTICE
GENERAL ADMINISTRATION
SALARIES AND EXPENSES

For expenses necessary for the administration of the Department of Justice, $75,773,000 of which not to exceed $3,317,000
is for the Facilities Program 2000, to remain available until
expended: Provided, That not to exceed 43 permanent positions
and 44 full-time equivalent workyears and $7,477,000 shall be
expended for the Department Leadership Program exclusive of augmentation that occurred in these offices in fiscal year 1996: Provided
further, That not to exceed 41 permanent positions and 48 fulltime equivalent workyears and $4,660,000 shall be expended for
the Offices of Legislative Affairs and Public Affairs:
*Note: This is a typeset print of the original hand enrollment as signed by the President on
September 30, 1996. The text is printed without corrections. Missing text in the original is
indicated by a footnote.

Departments of
Commerce,
Justice, and
State, the
Judiciary, and
Related Agencies
Appropriations
Act, 1997.
Department of
Justice
Appropriations
Act, 1997.

110 STAT. 3009–1

PUBLIC LAW 104–208—SEPT. 30, 1996

Provided further, That the latter two aforementioned offices shall
not be augmented by personnel details, temporary transfers of
personnel on either a reimbursable or non-reimbursable basis or
any other type of formal or informal transfer or reimbursement
of personnel or funds on either a temporary or long-term basis.
For an additional amount, for enhancements for the Office
of Intelligence Policy and Review and security measures, $3,600,000;
of which $2,170,000 is for security enhancements: Provided, That
the entire amount is designated by Congress as an emergency
requirement pursuant to section 251(b)(2)(D)(i) of the Balanced
Budget and Emergency Deficit Control Act of 1985, as amended.
COUNTERTERRORISM FUND

For necessary expenses, as determined by the Attorney General,
$9,450,000, to remain available until expended, to reimburse any
Department of Justice organization for (1) the costs incurred in
reestablishing the operational capability of an office or facility which
has been damaged or destroyed as a result of the bombing of
the Alfred P. Murrah Federal Building in Oklahoma City or any
domestic or international terrorist incident, (2) the costs of providing
support to counter, investigate or prosecute domestic or international terrorism, including payment of rewards in connection
with these activities, and (3) the costs of conducting a terrorism
threat assessment of Federal agencies and their facilities: Provided,
That funds provided under this heading shall be available only
after the Attorney General notifies the Committees on Appropriations of the House of Representatives and the Senate in accordance
with section 605 of this Act.
For an additional amount for necessary expenses, as determined
by the Attorney General, $20,000,000, to remain available until
expended, to reimburse any Department of Justice organization
for (1) the costs incurred in reestablishing the operational capability
of an office or facility which has been damaged or destroyed as
a result of any domestic or international terrorist incident, or (2)
the costs of providing support to counter, investigate or prosecute
domestic or international terrorism, including payment of rewards
in connection with these activities: Provided, That the entire
amount is designated by Congress as an emergency requirement
pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and
Emergency Deficit Control Act of 1985, as amended.
ADMINISTRATIVE REVIEW AND APPEALS

For expenses necessary for the administration of pardon and
clemency petitions and immigration related activities, $62,000,000.
For an additional amount for security measures for the Executive Office of Immigration Review, $1,000,000: Provided, That the
entire amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget
and Emergency Deficit Control Act of 1985, as amended.
VIOLENT CRIME REDUCTION PROGRAMS, ADMINISTRATIVE REVIEW AND
APPEALS

For activities authorized by section 130005 of the Violent Crime
Control and Law Enforcement Act of 1994 (Public Law 103–322),

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–2

as amended, $48,000,000, to remain available until expended, which
shall be derived from the Violent Crime Reduction Trust Fund.
OFFICE OF INSPECTOR GENERAL

For necessary expenses of the Office of Inspector General in
carrying out the provisions of the Inspector General Act of 1978,
as amended, $31,960,000; including not to exceed $10,000 to meet
unforeseen emergencies of a confidential character, to be expended
under the direction of, and to be accounted for solely under the
certificate of, the Attorney General; and for the acquisition, lease,
maintenance, and operation of motor vehicles, without regard to
the general purchase price limitation for the current fiscal year.
UNITED STATES PAROLE COMMISSION
SALARIES AND EXPENSES

For necessary expenses of the United States Parole Commission
as authorized by law, $4,845,000.
LEGAL ACTIVITIES
SALARIES AND EXPENSES, GENERAL LEGAL ACTIVITIES

For expenses, necessary for the legal activities of the Department of Justice, not otherwise provided for, including not to exceed
$20,000 for expenses of collecting evidence, to be expended under
the direction of, and to be accounted for solely under the certificate
of, the Attorney General; and rent of private or Government-owned
space in the District of Columbia; 420,793,000; of which not to
exceed $10,000,000 for litigation support contracts shall remain
available until expended: Provided, That of the funds available
in this appropriation, not to exceed $17,525,000 shall remain available until expended for office automation systems for the legal
divisions covered by this appropriation, and for the United States
Attorneys, the Antitrust Division, and offices funded through ‘‘Salaries and Expenses’’, General Administration: Provided further, That
of the total amount appropriated, not to exceed $1,000 shall be
available to the United States National Central Bureau,
INTERPOL, for official reception and representation expenses: Provided further, That notwithstanding 31 U.S.C. 1342, the Attorney
General may accept on behalf of the United States, and credit
to this appropriation, gifts of money, personal property and services,
for the purposes of hosting the International Criminal Police
Organization’s (INTERPOL) American Regional Conference in the
United States during fiscal year 1997: Provided further, That not
to exceed 8 permanent positions and 10 full-time equivalent
workyears and $987,000 shall be expended for the Office of Legislative Affairs and Public Affairs: Provided further, That the latter
two aforementioned offices shall not be augmented by personnel
details, temporary transfers of personnel on either a reimbursable
or nonreimbursable basis or any other type of formal or informal
transfer or reimbursement of personnel or funds on either a temporary or long-term basis.
In addition, for reimbursement of expenses of the Department
of Justice associated with processing cases under the National
Childhood Vaccine Injury Act of 1986 as amended, not to exceed

110 STAT. 3009–3

PUBLIC LAW 104–208—SEPT. 30, 1996

$4,028,000, to be appropriated from the Vaccine Injury Compensation Trust Fund.
For an additional amount for expenses of the Criminal Division
relating to terrorism, $1,719,000: Provided, That the entire amount
is designated by Congress as an emergency requirement pursuant
to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended.
VIOLENT CRIME REDUCTION PROGRAMS, GENERAL LEGAL ACTIVITIES

For the expeditious deportation of denied asylum applicants,
as authorized by section 130005 of the Violent Crime Control and
Law Enforcement Act of 1994 (Public Law 103–322), as amended,
$7,750,000, to remain available until expended, which shall be
derived from the Violent Crime Reduction Trust Fund.
SALARIES AND EXPENSES, ANTITRUST DIVISION

For expenses necessary for the enforcement of antitrust and
kindred laws, $76,447,000: Provided, That notwithstanding any
other provision of law, not to exceed $58,905,000 of offsetting collections derived from fees collected for premerger notification filings
under the Hart-Scott-Rodino Antitrust Improvements Act of 1976
(15 U.S.C. 18(a)) shall be retained and used for necessary expenses
in this appropriation, and shall remain available until expended:
Provided further, That the sum herein appropriated from the General Fund shall be reduced as such offsetting collections are received
during fiscal year 1997, so as to result in a final fiscal year 1997
appropriation from the General Fund estimated at not more than
$17,542,000: Provided further, That any fees received in excess
of $58,905,000 in fiscal year 1997, shall remain available until
expended, but shall not be available for obligation until October
1, 1997.
SALARIES AND EXPENSES, UNITED STATES ATTORNEYS

For necessary expenses of the Office of the United States Attorneys, including intergovernmental agreements, $923,340,000; of
which not to exceed $2,500,000 shall be available until September
30, 1998, for the purposes of (1) providing training of personnel
of the Department of Justice in debt collection, (2) providing services
to the Department of Justice related to locating debtors and their
property, such as title searches, debtor skiptracing, asset searches,
credit reports and other investigations, (3) paying the costs of
the Department of Justice for the sale of property not covered
by the sale proceeds, such as auctioneers’ fees and expenses, maintenance and protection of property and businesses, advertising and
title search and surveying costs, and (4) paying the costs of processing and tracking debts owed to the United States Government:
Provided, That of the total amount appropriated, not to exceed
$8,000 shall be available for official reception and representation
expenses: Provided further, That not to exceed $10,000,000 of those
funds available for automated litigation support contracts shall
remain available until expended: Provided further, That $1,900,000
for supervision of the International Brotherhood of Teamsters
national election, shall remain available until expended: Provided
further, That in addition to reimbursable full-time equivalent
workyears available to the Office of the United States Attorneys,

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–4

not to exceed 8,652 positions and 8,936 full-time equivalent
workyears shall be supported from the funds appropriated in this
Act for the United States Attorneys.
For an additional amount for expenses relating to terrorism
and security needs, $10,900,000: Provided, That the entire amount
is designated by Congress as an emergency requirement pursuant
to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended.
VIOLENT CRIME REDUCTION PROGRAMS, UNITED STATES ATTORNEYS

For activities authorized by sections 40114, 130005, 190001(b),
190001(d) and 250005 of the Violent Crime Control and Law
Enforcement Act of 1994 (Public Law 103–322), as amended, and
section 815 of the Antiterrorism and Effective Death Penalty Act
of 1996 (Public Law 104–132), $43,876,000, to remain available
until expended, which shall be derived from the Violent Crime
Reduction Trust Fund, of which $28,602,000 shall be available
to help meet the increased demands for litigation and related activities, $4,641,000 for Southwest Border Control, $1,000,000 for Federal victim counselors, and $9,633,000 for expeditious deportation
of denied asylum applicants.
UNITED STATES TRUSTEE SYSTEM FUND

For necessary expenses of the United States Trustee Program,
as authorized by 28 U.S.C. 589a(a), $107,950,000, to remain available until expended and to be derived from the United States
Trustee System Fund: Provided, That notwithstanding any other
provision of law, deposits to the Fund shall be available in such
amounts as may be necessary to pay refunds due depositors: Provided further, That notwithstanding any other provision of law,
$107,950,000 of offsetting collections derived from fees collected
pursuant to 28 U.S.C. 589a(b) shall be retained and used for necessary expenses in this appropriation and remain available until
expended: Provided further, That the sum herein appropriated from
the Fund shall be reduced as such offsetting collections are received
during fiscal year 1997, so as to result in a final fiscal year 1997
appropriation from the Fund estimated at $0: Provided further,
That any such fees collected in excess of $107,950,000 in fiscal
year 1997 shall remain available until expended but shall not
be available for obligation until October 1, 1997.
SALARIES AND EXPENSES, FOREIGN CLAIMS SETTLEMENT COMMISSION

For expenses necessary to carry out the activities of the Foreign
Claims Settlement Commission, including services as authorized
by 5 U.S.C. 3109, $953,000.
SALARIES AND EXPENSES, UNITED STATES MARSHALS SERVICE

For necessary expenses of the United States Marshals Service;
including the acquisition, lease, maintenance, and operation of
vehicles and aircraft, and the purchase of passenger motor vehicles
for police-type use, without regard to the general purchase price
limitation for the current fiscal year, $457,495,000, as authorized
by 28 U.S.C. 561(i); of which not to exceed $6,000 shall be available
for official reception and representation expenses; and of which

110 STAT. 3009–5

PUBLIC LAW 104–208—SEPT. 30, 1996

not to exceed $4,000,000 for development, implementation, maintenance and support, and training for an automated prisoner information system, and $2,200,000 to support the Justice Prisoner and
Alien Transportation System, shall remain available until expended:
Provided, That, with respect to the amounts appropriated above,
the service of maintaining and transporting State, local, or territorial prisoners shall be considered a specialized or technical service
for purposes of 31 U.S.C. 6505, and any prisoners so transported
shall be considered persons (transported for other than commercial
purposes) whose presence is associated with the performance of
a governmental function for purposes of 49 U.S.C. 40102: Provided
further, That not to exceed 12 permanent positions and 12 fulltime equivalent workyears and $700,000 shall be expended for
the Offices of Legislative Affairs and Public Affairs: Provided further, That the latter two aforementioned offices shall not be augmented by personnel details, temporary transfers of personnel on
either a reimbursable or nonreimbursable basis or any other type
of formal or informal transfer or reimbursement of personnel or
funds on either a temporary or long-term basis.
VIOLENT CRIME REDUCTION PROGRAMS, UNITED STATES MARSHALS
SERVICE

For activities authorized by section 190001(b) of the Violent
Crime Control and Law Enforcement Act of 1994 (Public Law
103–322), as amended, $25,000,000, to remain available until
expended, which shall be derived from the Violent Crime Reduction
Trust Fund.
FEDERAL PRISONER DETENTION

For expenses, related to United States prisoners in the custody
of the United States Marshals Service as authorized in 18 U.S.C.
4013, but not including expenses otherwise provided for in appropriations available to the Attorney General, $405,262,000, as
authorized by 28 U.S.C. 561(i), to remain available until expended:
Provided, That this appropriation hereafter shall not be available
for expenses authorized under 18 U.S.C. 4013(a)(4).
FEES AND EXPENSES OF WITNESSES

For expenses, mileage, compensation, and per diems of witnesses, for expenses of contracts for the procurement and supervision of expert witnesses, for private counsel expenses, and for
per diems in lieu of subsistence, as authorized by law, including
advances, $100,702,000, to remain available until expended; of
which not to exceed $4,750,000 may be made available for planning,
construction, renovations, maintenance, remodeling, and repair of
buildings, and the purchase of equipment incident thereto, for protected witness safesites; of which not to exceed $1,000,000 may
be made available for the purchase and maintenance of armored
vehicles for transportation of protected witnesses; and of which
not to exceed $4,000,000 may be made available for the purchase,
installation and maintenance of a secure, automated information
network to store and retrieve the identities and locations of protected witnesses.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–6

SALARIES AND EXPENSES, COMMUNITY RELATIONS SERVICE

For necessary expenses of the Community Relations Service,
established by title X of the Civil Rights Act of 1964, $5,319,000:
Provided, That notwithstanding any other provision of law, upon
a determination by the Attorney General that emergent circumstances require additional funding for conflict prevention and
resolution activities of the Community Relations Service, the Attorney General may transfer such amounts to the Community Relations Service, from available appropriations for the current fiscal
year for the Department of Justice, as may be necessary to respond
to such circumstances: Provided further, That any transfer pursuant
to this paragraph shall be treated as a reprogramming under section
605 of this Act and shall not be available for obligation or expenditure except in compliance with the procedures set forth in that
section.
ASSETS FORFEITURE FUND

For expenses authorized by 28 U.S.C. 524(c)(1)(A)(ii), (B), (C),
(F), and (G), as amended, $23,000,000, to be derived from the
Department of Justice Assets Forfeiture Fund.
RADIATION EXPOSURE COMPENSATION
ADMINISTRATIVE EXPENSES

For necessary administrative expenses in accordance with the
Radiation Exposure Compensation Act, $2,000,000.
PAYMENT TO RADIATION EXPOSURE COMPENSATION TRUST FUND

For payments to the Radiation Exposure Compensation Trust
Fund, $13,736,000, not to be available for obligation until September
30, 1997.
INTERAGENCY LAW ENFORCEMENT
INTERAGENCY CRIME AND DRUG ENFORCEMENT

For necessary expenses for the detection, investigation, and
prosecution of individuals involved in organized crime drug trafficking not otherwise provided for, to include intergovernmental agreements with State and local law enforcement agencies engaged in
the investigation and prosecution of individuals involved in organized crime drug trafficking, $359,430,000, of which $50,000,000
shall remain available until expended: Provided, That any amounts
obligated from appropriations under this heading may be used
under authorities available to the organizations reimbursed from
this appropriation: Provided further, That any unobligated balances
remaining available at the end of the fiscal year shall revert to
the Attorney General for reallocation among participating organizations in succeeding fiscal years, subject to the reprogramming procedures described in section 605 of this Act.

110 STAT. 3009–7

PUBLIC LAW 104–208—SEPT. 30, 1996
FEDERAL BUREAU

OF INVESTIGATION

SALARIES AND EXPENSES

For necessary expenses of the Federal Bureau of Investigation
for detection, investigation, and prosecution of crimes against the
United States; including purchase for police-type use of not to
exceed 2,706 passenger motor vehicles, of which 1,945 will be for
replacement only, without regard to the general purchase price
limitation for the current fiscal year, and hire of passenger motor
vehicles; acquisition, lease, maintenance, and operation of aircraft;
and not to exceed $70,000 to meet unforeseen emergencies of a
confidential character, to be expended under the direction of, and
to be accounted for solely under the certificate of, the Attorney
General; $2,451,361,000, of which not to exceed $50,000,000 for
automated data processing and telecommunications and technical
investigative equipment and $1,000,000 for undercover operations
shall remain available until September 30, 1998; of which not
less than $147,081,000 shall be for counterterrorism investigations,
foreign counterintelligence, and other activities related to our
national security; of which not to exceed $98,400,000 shall remain
available until expended; and of which not to exceed $10,000,000
is authorized to be made available for making payments or advances
for expenses arising out of contractual or reimbursable agreements
with State and local law enforcement agencies while engaged in
cooperative activities related to violent crime, terrorism, organized
crime, and drug investigations; and of which $1,500,000 shall be
available to maintain an independent program office dedicated
solely to the relocation of the Criminal Justice Information Services
Division and the automation of fingerprint identification services:
Provided, That not to exceed $45,000 shall be available for official
reception and representation expenses: Provided further, That not
to exceed 81 permanent positions and 85 full-time equivalent
workyears and $5,959,000 shall be expended for the Office of Legislative Affairs and Public Affairs: Provided further, That the latter
two aforementioned offices shall not be augmented by personnel
details, temporary transfers of personnel on either a reimbursable
or nonreimbursable basis or any other type of formal or informal
transfer or reimbursement of personnel or funds on either a temporary or long-term basis.
For an additional amount for necessary expenses of the Federal
Bureau of Investigation to prevent and investigate terrorism activities and incidents; provide for additional agents and support staff;
protect key physical assets; establish a capability for chemical,
biological and nuclear research; improve domestic intelligence; and
improve security at Federal Bureau of Investigation offices,
$115,610,000, as authorized by the Antiterrorism and Effective
Death Penalty Act of 1996 (P.L. 104–132): Provided, That the
entire amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget
and Emergency Deficit Control Act of 1985, as amended.
VIOLENT CRIME REDUCTION PROGRAMS

For activities authorized by the Violent Crime Control and
Law Enforcement Act of 1994 (Public Law 103–322) as amended
(‘‘the 1994 Act’’), and the Antiterrorism and Effective Death Penalty

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–8

Act of 1996 (‘‘the Antiterrorism Act’’), $169,000,000, to remain available until expended, which shall be derived from the Violent Crime
Reduction Trust Fund; of which $76,356,000 shall be for activities
authorized by section 190001(c) of the 1994 Act and section 811
of the Antiterrorism Act; $53,404,000 shall be for activities authorized by section 190001(b) of the 1994 Act, of which $20,240,000
shall be for activities authorized by section 103 of the Brady Handgun Violence Prevention Act (Public Law 103–159), as amended;
$4,000,000 shall be for training and investigative assistance authorized by section 210501 of the 1994 Act; $9,500,000 shall be for
grants to States, as authorized by section 811(b) of the Antiterrorism
Act; and $5,500,000 shall be for establishing DNA quality-assurance
and proficiency-testing standards, establishing an index to facilitate
law enforcement exchange of DNA identification information, and
related activities authorized by section 210501 of the 1994 Act.
TELECOMMUNICATIONS CARRIER COMPLIANCE FUND

For necessary expenses, as determined by the Attorney General,
$60,000,000, to remain available until expended, to be deposited
in the Telecommunications Carrier Compliance Fund for making
payments to telecommunications carriers, equipment manufacturers, and providers of telecommunications support services pursuant
to section 110 of this Act: Provided, That the entire amount is
designated by Congress as an emergency requirement pursuant
to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended: Provided further, That
the entire amount not previously designated by the President as
an emergency requirement shall be available only to the extent
an official budget request, for a specific dollar amount that includes
designation of the entire amount of the request as an emergency
requirement, as defined in the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended, is transmitted to Congress.
CONSTRUCTION

For necessary expenses to construct or acquire buildings and
sites by purchase, or as otherwise authorized by law (including
equipment for such buildings); conversion and extension of federallyowned buildings; and preliminary planning and design of projects;
$41,639,000, to remain available until expended.
DRUG ENFORCEMENT ADMINISTRATION
SALARIES AND EXPENSES

For necessary expenses of the Drug Enforcement Administration, including not to exceed $70,000 to meet unforeseen emergencies of a confidential character, to be expended under the direction of, and to be accounted for solely under the certificate of,
the Attorney General; expenses for conducting drug education and
training programs, including travel and related expenses for participants in such programs and the distribution of items of token
value that promote the goals of such programs; purchase of not
to exceed 1,158 passenger motor vehicles, of which 1,032 will be
for replacement only, for police-type use without regard to the
general purchase price limitation for the current fiscal year; and
acquisition, lease, maintenance, and operation of aircraft;

110 STAT. 3009–9

PUBLIC LAW 104–208—SEPT. 30, 1996

$745,388,000, of which not to exceed $1,800,000 for research and
$15,000,000 for transfer to the Drug Diversion Control Fee Account
for operating expenses shall remain available until expended, and
of which not to exceed $4,000,000 for purchase of evidence and
payments for information, not to exceed $4,000,000 for contracting
for automated data processing and telecommunications equipment,
and not to exceed $2,000,000 for laboratory equipment, $4,000,000
for technical equipment, and $2,000,000 for aircraft replacement
retrofit and parts, shall remain available until September 30, 1998;
and of which not to exceed $50,000 shall be available for official
reception and representation expenses: Provided, That not to exceed
25 permanent positions and 25 full-time equivalent workyears and
$1,828,000 shall be expended for the Office of Legislative Affairs
and Public Affairs: Provided further, That the latter two aforementioned offices shall not be augmented by personnel details, temporary transfers of personnel on either a reimbursable or nonreimbursable basis or any other type of formal or informal transfer
or reimbursement of personnel or funds on either a temporary
or long-term basis.
For an additional amount for security measures for domestic
and foreign Drug Enforcement Administration offices, $5,000,000:
Provided, That the entire amount is designated by Congress as
an emergency requirement pursuant to section 251(b)(2)(D)(i) of
the Balanced Budget and Emergency Deficit Control Act of 1985,
as amended.
VIOLENT CRIME REDUCTION PROGRAMS

For activities authorized by sections 180104 and 190001(b)
of the Violent Crime Control and Law Enforcement Act of 1994
(Public Law 103–322), as amended, and section 814 of the
Antiterrorism and Effective Death Penalty Act of 1996 (Public Law
104–132), and for the purchase of passenger motor vehicles for
police-type use, as otherwise authorized in this title, $220,000,000,
to remain available until expended, which shall be derived from
the Violent Crime Reduction Trust Fund.
CONSTRUCTION

For necessary expenses to construct or acquire buildings and
sites by purchase, or as otherwise authorized by law (including
equipment for such buildings); conversion and extension of federallyowned buildings; and preliminary planning and design of projects;
$30,806,000, to remain available until expended.
IMMIGRATION

AND

NATURALIZATION SERVICE

SALARIES AND EXPENSES
(INCLUDING TRANSFER OF FUNDS)

For expenses, not otherwise provided for, necessary for the
administration and enforcement of the laws relating to immigration,
naturalization, and alien registration, including not to exceed
$50,000 to meet unforeseen emergencies of a confidential character,
to be expended under the direction of, and to be accounted for
solely under the certificate of, the Attorney General; purchase for
police type use (not to exceed 2,691, of which 1,711 are for replacement only), without regard to the general purchase price limitation

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–10

for the current fiscal year, and hire of passenger motor vehicles;
acquisition, lease, maintenance and operation of aircraft; and
research related to immigration enforcement; $1,590,159,000 of
which not to exceed $400,000 for research shall remain available
until expended; and of which not to exceed $10,000,000 shall be
available for costs associated with the training program for basic
officer training, and $5,000,000 is for payments or advances arising
out of contractual or reimbursable agreements with State and local
law enforcement agencies while engaged in cooperative activities
related to immigration: Provided, That none of the funds available
to the Immigration and Naturalization Service shall be available
to pay any employee overtime pay in an amount in excess of
$30,000 during the calendar year beginning January 1, 1997: Provided further, That uniforms may be purchased without regard
to the general purchase price limitation for the current fiscal year:
Provided further, That not to exceed $5,000 shall be available
for official reception and representation expenses: Provided further,
That none of the funds provided in this or any other Act shall
be used for the continued operation of the San Clemente and
Temecula checkpoints unless the checkpoints are open and traffic
is being checked on a continuous 24-hour basis: Provided further,
That the Land Border Fee Pilot Project scheduled to end September
30, 1996, is extended to September 30, 1999, for projects on both
the northern and southern borders of the United States, except
that no pilot program may implement a universal land border
crossing toll: Provided further, That obligated and unobligated balances available to ‘‘Salaries and Expenses, Community Relations
Service’’ under section 501(c) of the Refugee Education Assistance
Act of 1980 are transferred to this account and shall remain available until expended: Provided further, That not to exceed 48 permanent positions and 48 full-time equivalent workyears and $4,628,000
shall be expended for the Office of Legislative Affairs and Public
Affairs: Provided further, That the latter two aforementioned offices
shall not be augmented by personnel details, temporary transfers
of personnel on either a reimbursable or nonreimbursable basis
or any other type of formal or informal transfer or reimbursement
of personnel or funds on either a temporary or long-term basis.
For an additional amount to support the detention and removal
of aliens with ties to terrorist organizations and expand the detention and removal of illegal aliens and enhance the intelligence
of the Immigration and Naturalization Service, $15,000,000, of
which $10,000,000 shall be for detention and removal of aliens:
Provided, That the entire amount is designated by Congress as
an emergency requirement pursuant to section 251(b)(2)(D)(i) of
the Balanced Budget and Emergency Deficit Control Act of 1985,
as amended.
VIOLENT CRIME REDUCTION PROGRAMS

For activities authorized by sections 130002, 130005, 130006,
130007, and 190001(b) of the Violent Crime Control and Law
Enforcement Act of 1994 (Public Law 103–322), as amended, and
section 813 of the Antiterrorism and Effective Death Penalty Act
of 1996 (Public Law 104–132), $500,000,000, to remain available
until expended, which will be derived from the Violent Crime Reduction Trust Fund, of which $66,217,000 shall be for expeditious
deportation of denied asylum applicants, $317,256,000 shall be for
improving border controls, and $116,527,000 shall be for detention

8 USC 1356 note.

110 STAT. 3009–11

PUBLIC LAW 104–208—SEPT. 30, 1996

and deportation proceedings: Provided, That amounts not required
for asylum processing provided under the expeditious deportation
of denied asylum applicants shall also be available for other deportation program activities.
CONSTRUCTION

For planning, construction, renovation, equipping, and maintenance of buildings and facilities necessary for the administration
and enforcement of the laws relating to immigration, naturalization,
and alien registration, not otherwise provided for, $9,841,000, to
remain available until expended.
FEDERAL PRISON SYSTEM
SALARIES AND EXPENSES

42 USC 250a.

18 USC 4352
note.

For expenses necessary for the administration, operation, and
maintenance of Federal penal and correctional institutions, including purchase (not to exceed 836, of which 572 are for replacement
only) and hire of law enforcement and passenger motor vehicles,
and for the provision of technical assistance and advice on corrections related issues to foreign governments; $2,768,316,000: Provided, That the Attorney General may transfer to the Health
Resources and Services Administration such amounts as may be
necessary for direct expenditures by that Administration for medical
relief for inmates of Federal penal and correctional institutions:
Provided further, That the Director of the Federal Prison System
(FPS), where necessary, may enter into contracts with a fiscal
agent/fiscal intermediary claims processor to determine the amounts
payable to persons who, on behalf of the FPS, furnish health services to individuals committed to the custody of the FPS: Provided
further, That uniforms may be purchased without regard to the
general purchase price limitation for the current fiscal year: Provided further, That not to exceed $6,000 shall be available for
official reception and representation expenses: Provided further,
That not to exceed $90,000,000 for the activation of new facilities
shall remain available until September 30, 1998: Provided further,
That of the amounts provided for Contract Confinement, not to
exceed $20,000,000 shall remain available until expended to make
payments in advance for grants, contracts and reimbursable agreements, and other expenses authorized by section 501(c) of the
Refugee Education Assistance Act of 1980, as amended, for the
care and security in the United States of Cuban and Haitian
entrants: Provided further, That notwithstanding section 4(d) of
the Service Contract Act of 1965 (41 U.S.C. 353(d)), FPS may
enter into contracts and other agreements with private entities
for periods of not to exceed 3 years and 7 additional option years
for the confinement of Federal prisoners: Provided further, That
the National Institute of Corrections hereafter shall be included
in the FPS Salaries and Expenses budget, in the Contract Confinement program and shall continue to perform its current functions
under 18 U.S.C. 4351, et seq., with the exception of its grant
program and shall collect reimbursement for services whenever
possible: Provided further, That any unexpended balances available
to the ‘‘National Institute of Corrections’’ account shall be credited
to and merged with this appropriation, to remain available until
expended.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–12

VIOLENT CRIME REDUCTION PROGRAMS

For substance abuse treatment in Federal prisons as authorized
by section 32001(e) of the Violent Crime Control and Law Enforcement Act of 1994 (Public Law 103–322), as amended, $25,224,000,
to remain available until expended, which shall be derived from
the Violent Crime Reduction Trust Fund.
BUILDINGS AND FACILITIES

For planning, acquisition of sites and construction of new facilities; leasing the Oklahoma City Airport Trust Facility; purchase
and acquisition of facilities and remodeling, and equipping of such
facilities for penal and correctional use, including all necessary
expenses incident thereto, by contract or force account; and constructing, remodeling, and equipping necessary buildings and facilities at existing penal and correctional institutions, including all
necessary expenses incident thereto, by contract or force account;
$395,700,000, to remain available until expended, of which not
to exceed $14,074,000 shall be available to construct areas for
inmate work programs: Provided, That labor of United States prisoners may be used for work performed under this appropriation:
Provided further, That not to exceed 10 percent of the funds appropriated to ‘‘Buildings and Facilities’’ in this Act or any other Act
may be transferred to ‘‘Salaries and Expenses’’, Federal Prison
System, upon notification by the Attorney General to the Committees on Appropriations of the House of Representatives and the
Senate in compliance with provisions set forth in section 605 of
this Act: Provided further, That of the total amount appropriated,
not to exceed $36,570,000 shall be available for the renovation
and construction of United States Marshals Service prisoner-holding
facilities.
FEDERAL PRISON INDUSTRIES, INCORPORATED

The Federal Prison Industries, Incorporated, is hereby authorized to make such expenditures, within the limits of funds and
borrowing authority available, and in accord with the law, and
to make such contracts and commitments, without regard to fiscal
year limitations as provided by section 9104 of title 31, United
States Code, as may be necessary in carrying out the program
set forth in the budget for the current fiscal year for such corporation, including purchase of (not to exceed five for replacement
only) and hire of passenger motor vehicles.
LIMITATION ON ADMINISTRATIVE EXPENSES, FEDERAL PRISON
INDUSTRIES, INCORPORATED

Not to exceed $3,042,000 of the funds of the corporation shall
be available for its administrative expenses, and for services as
authorized by 5 U.S.C. 3109, to be computed on an accrual basis
to be determined in accordance with the corporation’s current prescribed accounting system, and such amounts shall be exclusive
of depreciation, payment of claims, and expenditures which the
said accounting system requires to be capitalized or charged to
cost of commodities acquired or produced, including selling and
shipping expenses, and expenses in connection with acquisition,
construction, operation, maintenance, improvement, protection, or

110 STAT. 3009–13

PUBLIC LAW 104–208—SEPT. 30, 1996

disposition of facilities and other property belonging to the corporation or in which it has an interest.
OFFICE

OF

JUSTICE PROGRAMS

JUSTICE ASSISTANCE

For grants, contracts, cooperative agreements, and other assistance authorized by title I of the Omnibus Crime Control and Safe
Streets Act of 1968, as amended, and the Missing Children’s Assistance Act, as amended, including salaries and expenses in connection
therewith, and with the Victims of Crime Act of 1984, as amended,
$101,429,000, to remain available until expended, as authorized
by section 1001 of title I of the Omnibus Crime Control and Safe
Streets Act, as amended by Public Law 102–534 (106 Stat. 3524).
For an additional amount, $17,000,000, to remain available
until expended; of which $5,000,000 shall be for Local Firefighter
and Emergency Services Training Grants as authorized by section
819 of the Antiterrorism and Effective Death Penalty Act of 1996
(‘‘the Antiterrorism Act’’); of which $10,000,000 shall be for development of counterterrorism technologies to help State and local law
enforcement combat terrorism, as authorized by section 821 of
the Antiterrorism Act; of which $2,000,000 shall be for specialized
multi-agency response training: Provided, That the entire amount
is designated by Congress as an emergency requirement pursuant
to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended: Provided further, That
the entire amount not previously designated by the President as
an emergency requirement shall be available only to the extent
an official budget request, for a specific dollar amount that includes
designation of the entire amount of the request as an emergency
requirement, as defined in the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended, is transmitted to Congress.
STATE AND LOCAL LAW ENFORCEMENT ASSISTANCE

For grants, contracts, cooperative agreements, and other assistance authorized by part E of title I of the Omnibus Crime Control
and Safe Streets Act of 1968, as amended, for State and Local
Narcotics Control and Justice Assistance Improvements, notwithstanding the provisions of section 511 of said Act, $361,000,000,
to remain available until expended, as authorized by section 1001
of title I of said Act, as amended by Public Law 102–534 (106
Stat. 3524), of which $60,000,000 shall be available to carry out
the provisions of chapter A of subpart 2 of part E of title I of
said Act, for discretionary grants under the Edward Byrne Memorial
State and Local Law Enforcement Assistance Programs.
VIOLENT CRIME REDUCTION PROGRAMS, STATE AND LOCAL LAW
ENFORCEMENT ASSISTANCE

For assistance (including amounts for administrative costs for
management and administration, which amounts shall be transferred to and merged with the ‘‘Justice Assistance’’ account) authorized by the Violent Crime Control and Law Enforcement Act of
1994 (Public Law 103–322), as amended (‘‘the 1994 Act’’); the Omnibus Crime Control and Safe Streets Act of 1968, as amended (‘‘the
1968 Act’’); and the Victims of Child Abuse Act of 1990, as amended

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–14

(‘‘the 1990 Act’’); $2,036,150,000, to remain available until expended,
which shall be derived from the Violent Crime Reduction Trust
Fund; of which $523,000,000 shall be for Local Law Enforcement
Block Grants, pursuant to H.R. 728 as passed by the House of
Representatives on February 14, 1995, except that for purposes
of this Act, the Commonwealth of Puerto Rico shall be considered
a ‘‘unit of local government’’ as well as a ‘‘State’’, for the purposes
set forth in paragraphs (A), (B), (D), (F), and (I) of section 101(a)(2)
of H.R. 728 and for establishing crime prevention programs involving cooperation between community residents and law enforcement
personnel in order to control, detect, or investigate crime or the
prosecution of criminals: Provided, That no funds provided under
this heading may be used as matching funds for any other Federal
grant program: Provided further, That $20,000,000 of this amount
shall be for Boys and Girls Clubs in public housing facilities and
other areas in cooperation with State and local law enforcement:
Provided further, That funds may also be used to defray the costs
of indemnification insurance for law enforcement officers; of which
$50,000,000 shall be for grants to upgrade criminal records, as
authorized by section 106(b) of the Brady Handgun Violence Prevention Act of 1993, as amended, and section 4(b) of the National
Child Protection Act of 1993; of which $199,000,000 shall be available as authorized by section 1001 of title I of the 1968 Act,
to carry out the provisions of subpart 1, part E of title I of the
1968 Act, notwithstanding section 511 of said Act, for the Edward
Byrne Memorial State and Local Law Enforcement Assistance Programs; of which $330,000,000 shall be for the State Criminal Alien
Assistance Program, as authorized by section 242(j) of the Immigration and Nationality Act, as amended; of which $670,000,000 shall
be for Violent Offender Incarceration and Truth in Sentencing
Incentive Grants pursuant to subtitle A of title II of the 1994
Act, of which $170,000,000 shall be available for payments to States
for incarceration of criminal aliens, and of which $12,500,000 shall
be available for the Cooperative Agreement Program: Provided further, That funds made available for Violent Offender Incarceration
and Truth in Sentencing Incentive Grants to the State of California
may, at the discretion of the recipient, be used for payments for
the incarceration of criminal aliens: Provided further, That beginning in fiscal year 1999, and thereafter, no funds shall be available
to make grants to a State pursuant to section 20103 or section
20104 of the Violent Crime Control and Law Enforcement Act
of 1994 unless no later than September 1, 1998, such State has
implemented a program of controlled substance testing and intervention for appropriate categories of convicted offenders during
periods of incarceration and criminal justice supervision, with sanctions including denial or revocation of release for positive controlled
substance tests, consistent with guidelines issued by the Attorney
General; of which $6,000,000 shall be for the Court Appointed
Special Advocate Program, as authorized by section 218 of the
1990 Act; of which $1,000,000 shall be for Child Abuse Training
Programs for Judicial Personnel and Practitioners, as authorized
by section 224 of the 1990 Act; of which $145,000,000 shall be
for Grants to Combat Violence Against Women, to States, units
of local government, and Indian tribal governments, as authorized
by section 1001(a)(18) of the 1968 Act; of which $33,000,000 shall
be for Grants to Encourage Arrest Policies to States, units of local

42 USC 13703
note.

110 STAT. 3009–15

PUBLIC LAW 104–208—SEPT. 30, 1996

government, and Indian tribal governments, as authorized by section 1001(a)(19) of the 1968 Act; of which $8,000,000 shall be
for Rural Domestic Violence and Child Abuse Enforcement Assistance Grants, as authorized by section 40295 of the 1994 Act; of
which $1,000,000 shall be for training programs to assist probation
and parole officers who work with released sex offenders, as authorized by section 40152(c) of the 1994 Act; of which $550,000 shall
be for grants for televised testimony, as authorized by section
1001(a)(7) of the 1968 Act; of which $1,750,000 shall be for national
stalker and domestic violence reduction, as authorized by section
40603 of the 1994 Act; of which $30,000,000 shall be for grants
for residential substance abuse treatment for State prisoners as
authorized by section 1001(a)(17) of the 1968 Act; of which
$3,000,000 shall be for grants to States and units of local government for projects to improve DNA analysis, as authorized by section
1001(a)(22) of the 1968 Act; of which $900,000 shall be for the
Missing Alzheimer’s Disease Patient Alert Program, as authorized
by section 240001(c) of the 1994 Act; of which $750,000 shall be
for Motor Vehicle Theft Prevention Programs, as authorized by
section 220002(h) of the 1994 Act; of which $200,000 shall be
for a National Baseline Study on Campus Sexual Assault, as authorized by section 40506(e) of the 1994 Act; of which $30,000,000
shall be for Drug Courts, as authorized by title V of the 1994
Act; of which $1,000,000 shall be for Law Enforcement Family
Support Programs, as authorized by section 1001(a)(21) of the 1968
Act; and of which $2,000,000 shall be for public awareness programs
addressing marketing scams aimed at senior citizens, as authorized
by section 250005(3) of the 1994 Act: Provided further, That funds
made available in fiscal year 1997 under subpart 1 of part E
of title I of the Omnibus Crime Control and Safe Streets Act
of 1968, as amended, may be obligated for programs to assist
States in the litigation processing of death penalty Federal habeas
corpus petitions and for drug testing initiatives: Provided further,
That any 1996 balances for these programs shall be transferred
to and merged with this appropriation: Provided further, That if
a unit of local government uses any of the funds made available
under this title to increase the number of law enforcement officers,
the unit of local government will achieve a net gain in the number
of law enforcement officers who perform nonadministrative public
safety service.
WEED AND SEED PROGRAM FUND

For necessary expenses, including salaries and related expenses
of the Executive Office for Weed and Seed, to implement ‘‘Weed
and Seed’’ program activities, $28,500,000, which shall be derived
from discretionary grants provided under the Edward Byrne Memorial State and Local Law Enforcement Assistance Programs, to
remain available until expended for intergovernmental agreements,
including grants, cooperative agreements, and contracts, with State
and local law enforcement agencies engaged in the investigation
and prosecution of violent crimes and drug offenses in ‘‘Weed and
Seed’’ designated communities, and for either reimbursements or
transfers to appropriation accounts of the Department of Justice
and other Federal agencies which shall be specified by the Attorney
General to execute the ‘‘Weed and Seed’’ program strategy: Provided,
That funds designated by Congress through language for other
Department of Justice appropriation accounts for ‘‘Weed and Seed’’

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–16

program activities shall be managed and executed by the Attorney
General through the Executive Office for Weed and Seed: Provided
further, That the Attorney General may direct the use of other
Department of Justice funds and personnel in support of ‘‘Weed
and Seed’’ program activities only after the Attorney General notifies the Committees on Appropriations of the House of Representatives and the Senate in accordance with section 605 of this Act.
COMMUNITY ORIENTED POLICING SERVICES
VIOLENT CRIME REDUCTION PROGRAMS

For activities authorized by the Violent Crime Control and
Law Enforcement Act of 1994, Public Law 103–322 (‘‘the 1994
Act’’) (including administrative costs), $1,400,000,000, to remain
available until expended, which shall be derived from the Violent
Crime Reduction Trust Fund, for Public Safety and Community
Policing Grants pursuant to title I of the 1994 Act: Provided, That
not to exceed 186 permanent positions and 174 full-time equivalent
workyears and $19,800,000 shall be expended for program management and administration.
In addition, for programs of Police Corps education, training
and service as set forth in sections 200101–200113 of the Violent
Crime Control and Law Enforcement Act of 1994 (Public Law
103–322), $20,000,000, to remain available until expended, which
shall be derived from the Violent Crime Reduction Trust Fund.
JUVENILE JUSTICE PROGRAMS

For grants, contracts, cooperative agreements, and other assistance authorized by the Juvenile Justice and Delinquency Prevention
Act of 1974, as amended, including salaries and expenses in connection therewith to be transferred to and merged with the appropriations for Justice Assistance, $170,000,000, to remain available until
expended, as authorized by section 299 of part I of title II and
section 506 of title V of the Act, as amended by Public Law 102–
586, of which (1) notwithstanding any other provision of law,
$5,000,000 shall be available for expenses authorized by part A
of title II of the Act, $86,500,000 shall be available for expenses
authorized by part B of title II of the Act, and $29,500,000 shall
be available for expenses authorized by part C of title II of the
Act: Provided, That $16,500,000 of the amounts provided for part
B of title II of the Act, as amended, is for the purpose of providing
additional formula grants under part B, for innovative local law
enforcement and community policing programs, to States that provide assurances to the Administrator that the State has in effect
(or will have in effect no later than 1 year after date of application)
policies and programs, that ensure that juveniles are subject to
accountability-based sanctions for every act for which they are
adjudicated delinquent; (2) $12,000,000 shall be available for
expenses authorized by sections 281 and 282 of part D of title
II of the Act for prevention and treatment programs relating to
juvenile gangs; (3) $10,000,000 shall be available for expenses
authorized by section 285 of part E of title II of the Act; (4)
$7,000,000 shall be available for expenses authorized by part G
of title II of the Act for juvenile mentoring programs; and (5)
$20,000,000 shall be available for expenses authorized by title V
of the Act for incentive grants for local delinquency prevention

110 STAT. 3009–17

PUBLIC LAW 104–208—SEPT. 30, 1996

programs: Provided, That upon the enactment of reauthorization
legislation for Juvenile Justice Programs under the Juvenile Justice
and Delinquency Prevention Act of 1974, as amended, funding
provided in this Act shall from that date be subject to the provisions
of that legislation and any provisions in this Act that are inconsistent with that legislation shall no longer have effect.
In addition, for grants, contracts, cooperative agreements, and
other assistance authorized by the Victims of Child Abuse Act
of 1990, as amended, $4,500,000, to remain available until
expended, as authorized by sections 214B of the Act.
PUBLIC SAFETY OFFICERS BENEFITS

For payments authorized by part L of title I of the Omnibus
Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3796),
as amended, such sums as are necessary, to remain available until
expended, as authorized by section 6093 of Public Law 100–690
(102 Stat. 4339–4340), and, in addition, $2,200,000, to remain available until expended, for payments as authorized by section 1201(b)
of said Act.
GENERAL PROVISIONS—DEPARTMENT

18 USC 3059
note.

OF

JUSTICE

SEC. 101. In addition to amounts otherwise made available
in this title for official reception and representation expenses, a
total of not to exceed $45,000 from funds appropriated to the Department of Justice in this title shall be available to the Attorney
General for official reception and representation expenses in accordance with distributions, procedures, and regulations established
by the Attorney General.
SEC. 102. Authorities contained in the Department of Justice
Appropriation Authorization Act, Fiscal Year 1980 (Pub. L. 96–
132, 93 Stat. 1040 (1979)), as amended, shall remain in effect
until the termination date of this Act or until the effective date
of a Department of Justice Appropriation Authorization Act, whichever is earlier.
SEC. 103. None of the funds appropriated by this title shall
be available to pay for an abortion, except where the life of the
mother would be endangered if the fetus were carried to term,
or in the case of rape: Provided, That should this prohibition be
declared unconstitutional by a court of competent jurisdiction, this
section shall be null and void.
SEC. 104. None of the funds appropriated under this title shall
be used to require any person to perform, or facilitate in any
way the performance of, any abortion.
SEC. 105. Nothwing in the preceding section shall remove the
obligation of the Director of the Bureau of Prisons to provide escort
services necessary for a female inmate to receive such service outside the Federal facility: Provided, That nothing in this section
in any way diminishes the effect of section 104 intended to address
the philosophical beliefs of individual employees of the Bureau
of Prisons.
SEC. 106. Notwithstanding any other provision of law, not
to exceed $10,000,000 of the funds made available in this Act
may be used to establish and publicize a program under which
publicly-advertised, extraordinary rewards may be paid, which shall
not be subject to spending limitations contained in sections 3059
and 3072 of title 18, United States Code: Provided, That any reward

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–18

of $100,000 or more, up to a maximum of $2,000,000, may not
be made without the personal approval of the President or the
Attorney General and such approval may not be delegated.
SEC. 107. Not to exceed 5 percent of any appropriation made
available for the current fiscal year for the Department of Justice
in this Act, including those derived from the Violent Crime Reduction Trust Fund, may be transferred between such appropriations,
but no such appropriation, except as otherwise specifically provided,
shall be increased by more than 10 percent by any such transfers:
Provided, That any transfer pursuant to this section shall be treated
as a reprogramming of funds under section 605 of this Act and
shall not be available for obligation except in compliance with
the procedures set forth in that section.
SEC. 108. Section 524(c)(8)(E) of title 28, United States Code,
is amended by striking the year in the date therein contained
and replacing the same with ‘‘1996’’.
SEC. 109. (a) Section 1930(a) of title 28, United States Code,
is amended in paragraph (3), by inserting ‘‘$’’ before ‘‘800’’, and
in paragraph (6), by striking everything after ‘‘total less than
$15,000;’’ and inserting in lieu thereof: ‘‘$500 for each quarter
in which disbursements total $15,000 or more but less than $75,000;
$750 for each quarter in which disbursements total $75,000 or
more but less than $150,000; $1,250 for each quarter in which
disbursements total $150,000 or more but less than $225,000;
$1,500 for each quarter in which disbursements total $225,000
or more but less than $300,000; $3,750 for each quarter in which
disbursements total $300,000 or more but less than $1,000,000;
$5,000 for each quarter in which disbursements total $1,000,000
or more but less than $2,000,000; $7,500 for each quarter in which
disbursements total $2,000,000 or more but less than $3,000,000;
$8,000 for each quarter in which disbursements total $3,000,000
or more but less than $5,000,000; $10,000 for each quarter in
which disbursements total $5,000,000 or more. The fee shall be
payable on the last day of the calendar month following the calendar
quarter for which the fee is owed.’’.
(b) Section 589a of title 28, United States Code, is amended
to read as follows:
‘‘§ 589a. United States Trustee System Fund
‘‘(a) There is hereby established in the Treasury of the United
States a special fund to be known as the ‘United States Trustee
System Fund’ (hereinafter in this section referred to as the ‘Fund’).
Monies in the Fund shall be available to the Attorney General
without fiscal year limitation in such amounts as may be specified
in appropriations Acts for the following purposes in connection
with the operations of United States trustees—
‘‘(1) salaries and related employee benefits;
‘‘(2) travel and transportation;
‘‘(3) rental of space;
‘‘(4) communication, utilities, and miscellaneous computer
charges;
‘‘(5) security investigations and audits;
‘‘(6) supplies, books, and other materials for legal research;
‘‘(7) furniture and equipment;
‘‘(8) miscellaneous services, including those obtained by
contract; and
‘‘(9) printing.

110 STAT. 3009–19

28 USC 589a
note.

28 USC 1930
note.

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(b) For the purpose of recovering the cost of services of the
United States Trustee System, there shall be deposited as offsetting
collections to the appropriation ‘United States Trustee System
Fund’, to remain available until expended, the following—
‘‘(1) 23.08 percent of the fees collected under section
1930(a)(1) of this title;
‘‘(2) one-half of the fees collected under section 1930(a)(3)
of this title;
‘‘(3) one-half of the fees collected under section 1930(a)(4)
of this title;
‘‘(4) one-half of the fees collected under section 1930(a)(5)
of this title;
‘‘(5) 100 percent of the fees collected under section
1930(a)(6) of this title;
‘‘(6) three-fourths of the fees collected under the last sentence of section 1930(a) of this title;
‘‘(7) the compensation of trustees received under section
330(d) of title 11 by the clerks of the bankruptcy courts; and
‘‘(8) excess fees collected under section 586(e)(2) of this
title.
‘‘(c) Amounts in the Fund which are not currently needed
for the purposes specified in subsection (a) shall be kept on deposit
or invested in obligations of, or guaranteed by, the United States.
‘‘(d) The Attorney General shall transmit to the Congress, not
later than 120 days after the end of each fiscal year, a detailed
report on the amounts deposited in the Fund and a description
of expenditures made under this section.
‘‘(e) There are authorized to be appropriated to the Fund for
any fiscal year such sums as may be necessary to supplement
amounts deposited under subsection (b) for the purposes specified
in subsection (a).’’.
(c) Notwithstanding any other provision of law or of this Act,
the amendments to 28 U.S.C. 589a made by subsection (b) of
this section shall take effect upon enactment of this Act.
(d) Section 101(a) of Public Law 104–91, as amended by section
211 of Public Law 104–99, is further amended by inserting ‘‘:
Provided further, That, notwithstanding any other provision of law,
the fees under 28 U.S.C. 1930(a)(6) shall accrue and be payable
from and after January 27, 1996, in all cases (including, without
limitation, any cases pending as of that date), regardless of confirmation status of their plans’’ after ‘‘enacted into law’’.
SEC. 110. Public Law 103–414 (108 Stat. 4279) is amended
by inserting at its conclusion a new title IV, as follows:
‘‘TITLE IV—TELECOMMUNICATIONS CARRIER COMPLIANCE
PAYMENTS

47 USC 1021.

‘‘SEC. 401. DEPARTMENT OF JUSTICE TELECOMMUNICATIONS CARRIER COMPLIANCE FUND.

‘‘(a) ESTABLISHMENT OF FUND.—There is hereby established
in the United States Treasury a fund to be known as the Department of Justice Telecommunications Carrier Compliance Fund
(hereafter referred to as ‘the Fund’), which shall be available without fiscal year limitation to the Attorney General for making payments to telecommunications carriers, equipment manufacturers,
and providers of telecommunications support services pursuant to
section 109 of this Act.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–20

‘‘(b) DEPOSITS TO THE FUND.—Notwithstanding any other provision of law, any agency of the United States with law enforcement
or intelligence responsibilities may deposit as offsetting collections
to the Fund any unobligated balances that are available until
expended, upon compliance with any Congressional notification
requirements for reprogrammings of funds applicable to the appropriation from which the deposit is to be made.
‘‘(c) TERMINATION.—
‘‘(1) The Attorney General may terminate the Fund at
such time as the Attorney General determines that the Fund
is no longer necessary.
‘‘(2) Any balance in the Fund at the time of its termination
shall be deposited in the General Fund of the Treasury.
‘‘(3) A decision of the Attorney General to terminate the
Fund shall not be subject to judicial review.
‘‘(d) AVAILABILITY OF FUNDS FOR EXPENDITURE.—Funds shall
not be available for obligation unless an implementation plan as
set forth in subsection (e) is submitted to each member of the
Committees on the Judiciary and Appropriations of both the House
of Representatives and the Senate and the Congress does not by
law block or prevent the obligation of such funds. Such funds
shall be treated as a reprogramming of funds under section 605
of the Department of Commerce, Justice, and State, the Judiciary,
and Related Agencies Appropriations Act, 1997, and shall not be
available for obligation or expenditure except in compliance with
the procedures set forth in that section and this section.
‘‘(e) IMPLEMENTATION PLAN.—The implementation plan shall
include:
‘‘(1) the law enforcement assistance capability requirements
and an explanation of law enforcement’s recommended interface;
‘‘(2) the proposed actual and maximum capacity requirements for the number of simultaneous law enforcement communications intercepts, pen registers, and trap and trace devices
that authorized law enforcement agencies may seek to conduct,
set forth on a county-by-county basis for wireline services and
on a market service area basis for wireless services, and the
historical baseline of electronic surveillance activity upon which
such capacity requirements are based;
‘‘(3) a prioritized list of carrier equipment, facilities, and
services deployed on or before January 1, 1995, to be modified
by carriers at the request of law enforcement based on its
investigative needs;
‘‘(4) a projected reimbursement plan that estimates the
cost for the coming fiscal year and for each fiscal year thereafter, based on the prioritization of law enforcement needs
as outlined in (3), of modification by carriers of equipment,
facilities and services, installed on or before January 1, 1995.
‘‘(f) ANNUAL REPORT TO THE CONGRESS.—The Attorney General
shall submit to the Congress each year a report specifically detailing
all deposits and expenditures made pursuant to this Act in each
fiscal year. This report shall be submitted to each member of
the Committees on the Judiciary and Appropriations of both the
House of Representatives and the Senate, and to the Speaker and
minority leader of the House of Representatives and to the majority
and minority leaders of the Senate, no later than 60 days after
the end of each fiscal year.’’.

110 STAT. 3009–21

PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 111. It is the sense of the Congress that the Drug Enforcement Administration, together with other appropriate Federal agencies, should take such actions as may be necessary to end the
illegal importation into the United States of Rohypnol
(flunitrazepam), a drug frequently distributed with the intent to
facilitate sexual assault and rape.
SEC. 112. Section 1402 of the Victims of Crime Act of 1984,
as amended (42 U.S.C. 10601), is amended at subsection (e) by
deleting ‘‘2’’ and inserting ‘‘3’’, and at subsection (d) by adding
a new paragraph (5) as follows:
‘‘(5) The Director may set aside up to $500,000 of the
reserve fund described in paragraph (4) to make supplemental
grants to United States Attorneys Offices to provide necessary
assistance to victims of the bombing of the Alfred P. Murrah
Federal Building in Oklahoma City, to facilitate observation
of and/or participation by such victims in trial proceedings
arising therefrom, including, without limitation, provision of
lodging and travel assistance, and to pay such other, related
expenses determined to be necessary by the Director.’’.
SEC. 113. Section 732 of Public Law 104–132 (110 Stat. 1303;
18 U.S.C. 841 note) is amended—
(1) in subsection (a), by adding at the end the following
new paragraph:
‘‘(3) NEW PREVENTION TECHNOLOGIES.—In addition to the
study of taggants as provided herein, the Secretary, in consultation with the Attorney General, shall concurrently report to
the Congress on the possible use, and exploitation of technologies such as vapor detection devices, computed tomography,
nuclear quadropole resonance, thermal neutron analysis, pulsed
fast-neutron analysis, and other technologies upon which recommendations to the Congress may be made for further study,
funding, and use of the same in preventing and solving acts
of terrorism involving explosive devices.’’; and
(2) by adding at the end the following new subsection:
‘‘(f) SPECIAL STUDY.—
‘‘(1) IN GENERAL.—Notwithstanding subsection (a), the Secretary of the Treasury shall enter into a contract with the
National Academy of Sciences (referred to in this section as
the ‘Academy’) to conduct a study of the tagging of smokeless
and black powder by any viable technology for purposes of
detection and identification. The study shall be conducted by
an independent panel of 5 experts appointed by the Academy.
‘‘(2) STUDY ELEMENTS.—The study conducted under this
subsection shall—
‘‘(A) indicate whether the tracer elements, when added
to smokeless and black powder—
‘‘(i) will pose a risk to human life or safety;
‘‘(ii) will substantially assist law enforcement officers in their investigative efforts;
‘‘(iii) will impair the quality and performance of
the powders (which shall include a broad and comprehensive sampling of all available powders) for their
intended lawful use, including, but not limited to the
sporting, defense, and handloading uses of the powders,
as well as their use in display and lawful consumer
pyrotechnics;

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110 STAT. 3009–22

‘‘(iv) will have a substantially adverse effect on
the environment;
‘‘(v) will incur costs which outweigh the benefits
of their inclusion, including an evaluation of the probable production and regulatory cost of compliance to
the industry, and the costs and effects on consumers,
including the effect on the demand for ammunition;
and
‘‘(vi) can be evaded, and with what degree of difficulty, by terrorists or terrorist organizations, including evading tracer elements by the use of precursor
chemicals to make black or other powders; and
‘‘(B) provide for consultation on the study with Federal,
State, and local officials, non-governmental organizations,
including all national police organizations, national sporting organizations, and national industry associations with
expertise in this area and such other individuals as shall
be deemed necessary.
‘‘(3) REPORT AND COSTS.—The study conducted under this
subsection shall be presented to Congress 12 months after
the enactment of this subsection and be made available to
the public, including any data tapes or data used to form
such recommendations. There are authorized to be appropriated
such sums as may be necessary to carry out the study.’’.
SEC. 114. (a) Section 524(c)(1) of title 28, United States Code,
is amended in the first sentence following the second subparagraph
(I) by deleting ‘‘(C),’’.
(b) Section 524 (c)(8)(A) is amended by deleting ‘‘(C),’’.
SEC. 115. Effective with the enactment of this Act and in
any fiscal year hereafter, under policies established by the Attorney
General, the Department of Justice may reimburse employees who
are paid by an appropriation account within the Department of
Justice and are traveling on behalf of the United States in temporary duty status to investigate, prosecute, or litigate (including
the provision of support therefor) a criminal or civil matter, or
for other similar special circumstances, for Federal, State, and
local taxes heretofore and hereafter resulting from any reimbursement of travel expenses from an appropriation account within the
Department of Justice: Provided, That such reimbursement may
include an amount equal to all income taxes for which the employee
would be liable due to such reimbursement.
SEC. 116. Section 524 of title 28, United States Code, is amended by adding a new subsection (d) as follows:
‘‘(d)(1) The Attorney General may accept, hold, administer,
and use gifts, devises, and bequests of any property for the purpose
of aiding or facilitating the work of the Department of Justice.
‘‘(2) Gifts, devises, and bequests of money, the proceeds of
sale or liquidation of any other property accepted hereunder, and
any income accruing from any property accepted hereunder—
‘‘(A) shall be deposited in the Treasury in a separate fund
and held in trust by the Secretary of the Treasury for the
benefit of the Department of Justice; and
‘‘(B) are hereby appropriated, without fiscal year limitation,
and shall be disbursed on order of the Attorney General.
‘‘(3) Upon request of the Attorney General, the Secretary of
the Treasury may invest and reinvest the fund described herein
in public debt securities with maturities suitable for the needs

28 USC 509 note.

110 STAT. 3009–23

Age
Discrimination in
Employment
Amendments of
1996.
29 USC 621 note.

PUBLIC LAW 104–208—SEPT. 30, 1996

of the fund and bearing interest at rates determined by the Secretary of the Treasury, taking into consideration the current average
market yield on outstanding marketable obligations of the United
States or comparable maturities.
‘‘(4) Evidences of any intangible personal property (other than
money) accepted hereunder shall be deposited with the Secretary
of the Treasury, who may hold or liquidate them, except that
they shall be liquidated upon the request of the Attorney General.
‘‘(5) For purposes of federal income, estate, and gift taxes,
property accepted hereunder shall be considered a gift, devise,
or bequest to, or for the use of, the United States.’’.
SEC. 117. Section 524(c)(9), of title 28, United States Code,
is amended to read as follows:
‘‘(9)(A) Following the completion of procedures for the forfeiture of property pursuant to any law enforced or administered by the Department, the Attorney General is authorized,
in her discretion, to warrant clear title to any subsequent
purchaser or transferee of such property.
‘‘(B) For fiscal year 1997, the Attorney General is authorized to transfer, under such terms and conditions as the Attorney General shall specify, real or personal property of limited
or marginal value, to a State or local government agency,
or its designated contractor or transferee, for use to support
drug abuse treatment, drug and crime prevention and education, housing, job skills, and other community-based public
health and safety programs. Such transfer shall not create
or confer any private right of action in any person against
the United States.’’.
SEC. 118. Section 594(b)(3)(A) of title 28, United States Code,
is amended in the second sentence by—
(a) striking ‘‘by 6 months’’ and inserting ‘‘for successive
6-month periods’’; and
(b) striking the phrase ‘‘employee assigned duties under
subsection (l)(1)(A)(iii) certifies’’ and inserting ‘‘independent
counsel and the division of the court certify’’;
(c) striking ‘‘such employee’’ and inserting ‘‘the independent
counsel’’ and ‘‘the division of the court’’.
SEC. 119. This section may be cited as the ‘‘Age Discrimination
in Employment Amendments of 1996’’.
Subsection 1. Age Discrimination Amendment.
(a) REPEAL OF REPEALER.—Section 3(b) of the Age Discrimination in Employment Amendments of 1986 (29 U.S.C. 623 note)
is repealed.
(b) EXEMPTION.—Section 4(j) of the Age Discrimination in
Employment Act of 1967 (29 U.S.C. 623(j)), as in effect immediately
before December 31, 1993—
(1) is reenacted as such section; and
(2) as so reenacted, is amended in paragraph (1) by striking
‘‘and the individual has attained the age’’ and all that follows
through ‘‘1983, and’’ and inserting the following: ‘‘, the employer
has complied with section 3(d)(2) of the Age Discrimination
in Employment Amendments of 1996 if the individual was
discharged after the date described in such section, and the
individual has attained—

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–24

‘‘(A) the age of hiring or retirement, respectively, in
effect under applicable State or local law on March 3,
1983; or
‘‘(B)(i) if the individual was not hired, the age of hiring
in effect on the date of such failure or refusal to hire
under applicable State or local law enacted after the date
of enactment of the Age Discrimination in Employment
Amendments of 1996; or
‘‘(ii) if applicable State or local law was enacted after
the date of enactment of the Age Discrimination in Employment Amendments of 1996 and the individual was discharged, the higher of—
‘‘(I) the age of retirement in effect on the date
of such discharge under such law; and
‘‘(II) age 55; and’’.
(c) CONSTRUCTION.—Nothing in the repeal, reenactment, and
amendment made by subsections (a) and (b) shall be construed
to make lawful the failure or refusal to hire, or the discharge
of, an individual pursuant to a law that—
(1) was enacted after March 3, 1983 and before the date
of enactment of the Age Discrimination in Employment Amendments of 1996; and
(2) lowered the age of hiring or retirement, respectively,
for firefighters or law enforcement officers that was in effect
under applicable State or local law on March 3, 1983.
Subsection 2. Study and Guidelines for Performance Tests.
(a) STUDY.—Not later than 3 years after the date of enactment
of this Act, the Secretary of Health and Human Services, acting
through the Director of the National Institute for Occupational
Safety and Health (referred to in this section as the ‘‘Secretary’’),
shall conduct, directly or by contract, a study, and shall submit
to the appropriate committees of Congress a report based on the
results of the study that shall include—
(1) a list and description of all tests available for the
assessment of abilities important for the completion of public
safety tasks performed by law enforcement officers and firefighters;
(2) a list of the public safety tasks for which adequate
tests described in paragraph (1) do not exist;
(3) a description of the technical characteristics that the
tests shall meet to be in compliance with applicable Federal
civil rights law and policies;
(4) a description of the alternative methods that are available for determining minimally acceptable performance standards on the tests;
(5) a description of the administrative standards that
should be met in the administration, scoring, and score
interpretation of the tests; and
(6) an examination of the extent to which the tests are
cost-effective, are safe, and comply with the Federal civil rights
law and policies.
(b) CONSULTATION REQUIREMENT; OPPORTUNITY FOR PUBLIC
COMMENT.—
(1) CONSULTATION.—The Secretary shall, during the conduct of the study required by subsection (a), consult with—

29 USC 623 note.

29 USC 623 note.

110 STAT. 3009–25

PUBLIC LAW 104–208—SEPT. 30, 1996

(A) the Deputy Administrator of the United States
Fire Administration;
(B) the Director of the Federal Emergency Management
Agency;
(C) organizations that represent law enforcement officers, firefighters, and employers of the officers and firefighters; and
(D) organizations that represent older individuals.
(2) PUBLIC COMMENT.—Prior to issuing the advisory guidelines required in subsection (c), the Secretary shall provide
an opportunity for public comment on the proposed advisory
guidelines.
(c) ADVISORY GUIDELINES.—Not later than 4 years after the
date of enactment of this Act, the Secretary shall develop and
issue, based on the results of the study required by subsection
(a), advisory guidelines for the administration and use of physical
and mental fitness tests to measure the ability and competency
of law enforcement officers and firefighters to perform the requirements of the jobs of the officers and firefighters.
(d) JOB PERFORMANCE TESTS.—
(1) IDENTIFICATION OF TESTS.—After issuance of the
advisory guidelines described in subsection (c), the Secretary
shall issue regulations identifying valid, nondiscriminatory job
performance tests that shall be used by employers seeking
the exemption described in section 4(j) of the Age Discrimination in Employment Act of 1967 with respect to firefighters
or law enforcement officers who have attained an age of retirement described in such section 4(j).
(2) USE OF TESTS.—Effective on the date of issuance of
the regulations described in paragraph (1), any employer seeking such exemption with respect to a firefighter or law enforcement officer who has attained such age shall provide to each
firefighter or law enforcement officer who has attained such
age an annual opportunity to demonstrate physical and mental
fitness by passing a test described in paragraph (1), in order
to continue employment.
(e) DEVELOPMENT OF STANDARDS FOR WELLNESS PROGRAMS.—
Not later than 2 years after the date of enactment of this Act,
the Secretary shall propose advisory standards for wellness programs for law enforcement officers and firefighters.
(f) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated $5,000,000 to carry out this section.
29 USC 623 note.

Subsection 3. Effective Dates.
(a) GENERAL EFFECTIVE DATE.—Except as provided in subsection (b), this title and the amendments made by this title shall
take effect on the date of enactment of this Act.
(b) SPECIAL EFFECTIVE DATE.—The repeal made by section
2(a) and the reenactment made by section 2(b)(1) shall take effect
on December 31, 1993.
SEC. 120. Section 320935(e) of the Violent Crime Control and
Law Enforcement Act of 1994 is amended by inserting ‘‘, including
all trials commenced on or after the effective date of such amendments’’ after ‘‘such amendments’’.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–26

SEC. 121. This section may be cited as the ‘‘Child Pornography
Prevention Act of 1996’’.
Subsection 1. Findings.
Congress finds that—
(1) the use of children in the production of sexually explicit
material, including photographs, films, videos, computer
images, and other visual depictions, is a form of sexual abuse
which can result in physical or psychological harm, or both,
to the children involved;
(2) where children are used in its production, child pornography permanently records the victim’s abuse, and its continued
existence causes the child victims of sexual abuse continuing
harm by haunting those children in future years;
(3) child pornography is often used as part of a method
of seducing other children into sexual activity; a child who
is reluctant to engage in sexual activity with an adult, or
to pose for sexually explicit photographs, can sometimes be
convinced by viewing depictions of other children ‘‘having fun’’
participating in such activity;
(4) child pornography is often used by pedophiles and child
sexual abusers to stimulate and whet their own sexual
appetites, and as a model for sexual acting out with children;
such use of child pornography can desensitize the viewer to
the pathology of sexual abuse or exploitation of children, so
that it can become acceptable to and even preferred by the
viewer;
(5) new photographic and computer imagining technologies
make it possible to produce by electronic, mechanical, or other
means, visual depictions of what appear to be children engaging
in sexually explicit conduct that are virtually indistinguishable
to the unsuspecting viewer from unretouched photographic
images of actual children engaging in sexually explicit conduct;
(6) computers and computer imaging technology can be
used to—
(A) alter sexually explicit photographs, films, and videos in such a way as to make it virtually impossible for
unsuspecting viewers to identify individuals, or to determine if the offending material was produced using children;
(B) produce visual depictions of child sexual activity
designed to satisfy the preferences of individual child
molesters, pedophiles, and pornography collectors; and
(C) alter innocent pictures of children to create visual
depictions of those children engaging in sexual conduct;
(7) the creation or distribution of child pornography which
includes an image of a recognizable minor invades the child’s
privacy and reputational interests, since images that are created showing a child’s face or other identifiable feature on
a body engaging in sexually explicit conduct can haunt the
minor for years to come;
(8) the effect of visual depictions of child sexual activity
on a child molester or pedophile using that material to stimulate or whet his own sexual appetites, or on a child where
the material is being used as a means of seducing or breaking
down the child’s inhibitions to sexual abuse or exploitation,

Child
Pornography
Prevention Act of
1996.
18 USC 2251
note.
18 USC 2251
note.

110 STAT. 3009–27

PUBLIC LAW 104–208—SEPT. 30, 1996

is the same whether the child pornography consists of photographic depictions of actual children or visual depictions produced wholly or in part by electronic, mechanical, or other
means, including by computer, which are virtually indistinguishable to the unsuspecting viewer from photographic images
of actual children;
(9) the danger to children who are seduced and molested
with the aid of child sex pictures is just as great when the
child pornographer or child molester uses visual depictions
of child sexual activity produced wholly or in part by electronic,
mechanical, or other means, including by computer, as when
the material consists of unretouched photographic images of
actual children engaging in sexually explicit conduct;
(10)(A) the existence of and traffic in child pornographic
images creates the potential for many types of harm in the
community and presents a clear and present danger to all
children; and
(B) it inflames the desires of child molesters, pedophiles,
and child pornographers who prey on children, thereby increasing the creation and distribution of child pornography and
the sexual abuse and exploitation of actual children who are
victimized as a result of the existence and use of these materials;
(11)(A) the sexualization and eroticization of minors
through any form of child pornographic images has a deleterious
effect on all children by encouraging a societal perception of
children as sexual objects and leading to further sexual abuse
and exploitation of them; and
(B) this sexualization of minors creates an unwholesome
environment which affects the psychological, mental and emotional development of children and undermines the efforts of
parents and families to encourage the sound mental, moral
and emotional development of children;
(12) prohibiting the possession and viewing of child pornography will encourage the possessors of such material to rid
themselves of or destroy the material, thereby helping to protect
the victims of child pornography and to eliminate the market
for the sexual exploitative use of children; and
(13) the elimination of child pornography and the protection
of children from sexual exploitation provide a compelling
governmental interest for prohibiting the production, distribution, possession, sale, or viewing of visual depictions of children
engaging in sexually explicit conduct, including both photographic images of actual children engaging in such conduct
and depictions produced by computer or other means which
are virtually indistinguishable to the unsuspecting viewer from
photographic images of actual children engaging in such conduct.
Subsection 2. Definitions.
Section 2256 of title 18, United States Code, is amended—
(1) in paragraph (5), by inserting before the semicolon
the following: ‘‘, and data stored on computer disk or by electronic means which is capable of conversion into a visual
image’’;
(2) in paragraph (6), by striking ‘‘and’’;

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–28

(3) in paragraph (7), by striking the period and inserting
a semicolon; and
(4) by adding at the end the following new paragraphs:
‘‘(8) ‘child pornography’ means any visual depiction, including any photograph, film, video, picture, or computer or computer-generated image or picture, whether made or produced
by electronic, mechanical, or other means, of sexually explicit
conduct, where—
‘‘(A) the production of such visual depiction involves
the use of a minor engaging in sexually explicit conduct;
‘‘(B) such visual depiction is, or appears to be, of a
minor engaging in sexually explicit conduct;
‘‘(C) such visual depiction has been created, adapted,
or modified to appear that an identifiable minor is engaging
in sexually explicit conduct; or
‘‘(D) such visual depiction is advertised, promoted, presented, described, or distributed in such a manner that
conveys the impression that the material is or contains
a visual depiction of a minor engaging in sexually explicit
conduct; and
‘‘(9) ‘identifiable minor’—
‘‘(A) means a person—
‘‘(i)(I) who was a minor at the time the visual
depiction was created, adapted, or modified; or
‘‘(II) whose image as a minor was used in creating,
adapting, or modifying the visual depiction; and
‘‘(ii) who is recognizable as an actual person by
the person’s face, likeness, or other distinguishing characteristic, such as a unique birthmark or other recognizable feature; and
‘‘(B) shall not be construed to require proof of the
actual identity of the identifiable minor.’’.
Subsection 3. Prohibited Activities Relating to Material Constituting or Containing Child Pornography.
(a) IN GENERAL.—Chapter 110 of title 18, United States Code,
is amended by adding after section 2252 the following:
‘‘§ 2252A. Certain activities relating to material constituting
or containing child pornography
‘‘(a) Any person who—
‘‘(1) knowingly mails, or transports or ships in interstate
or foreign commerce by any means, including by computer,
any child pornography;
‘‘(2) knowingly receives or distributes—
‘‘(A) any child pornography that has been mailed, or
shipped or transported in interstate or foreign commerce
by any means, including by computer; or
‘‘(B) any material that contains child pornography that
has been mailed, or shipped or transported in interstate
or foreign commerce by any means, including by computer;
‘‘(3) knowingly reproduces any child pornography for distribution through the mails, or in interstate or foreign commerce by any means, including by computer;
‘‘(4) either—
‘‘(A) in the special maritime and territorial jurisdiction
of the United States, or on any land or building owned

110 STAT. 3009–29

PUBLIC LAW 104–208—SEPT. 30, 1996

by, leased to, or otherwise used by or under the control
of the United States Government, or in the Indian country
(as defined in section 1151), knowingly sells or possesses
with the intent to sell any child pornography; or
‘‘(B) knowingly sells or possesses with the intent to
sell any child pornography that has been mailed, or shipped
or transported in interstate or foreign commerce by any
means, including by computer, or that was produced using
materials that have been mailed, or shipped or transported
in interstate or foreign commerce by any means, including
by computer; or
‘‘(5) either—
‘‘(A) in the special maritime and territorial jurisdiction
of the United States, or on any land or building owned
by, leased to, or otherwise used by or under the control
of the United States Government, or in the Indian country
(as defined in section 1151), knowingly possesses any book,
magazine, periodical, film, videotape, computer disk, or
any other material that contains 3 or more images of
child pornography; or
‘‘(B) knowingly possesses any book, magazine, periodical, film, videotape, computer disk, or any other material
that contains 3 or more images of child pornography that
has been mailed, or shipped or transported in interstate
or foreign commerce by any means, including by computer,
or that was produced using materials that have been
mailed, or shipped or transported in interstate or foreign
commerce by any means, including by computer,
shall be punished as provided in subsection (b).
‘‘(b)(1) Whoever violates, or attempts or conspires to violate,
paragraphs (1), (2), (3), or (4) of subsection (a) shall be fined under
this title or imprisoned not more than 15 years, or both, but,
if such person has a prior conviction under this chapter or chapter
109A, or under the laws of any State relating to aggravated sexual
abuse, sexual abuse, or abusive sexual conduct involving a minor
or ward, or the production, possession, receipt, mailing, sale, distribution, shipment, or transportation of child pornography, such
person shall be fined under this title and imprisoned for not less
than 5 years nor more than 30 years.
‘‘(2) Whoever violates, or attempts or conspires to violate, subsection (a)(5) shall be fined under this title or imprisoned not
more than 5 years, or both, but, if such person has a prior conviction
under this chapter or chapter 109A, or under the laws of any
State relating to the possession of child pornography, such person
shall be fined under this title and imprisoned for not less than
2 years nor more than 10 years.
‘‘(c) It shall be an affirmative defense to a charge of violating
paragraphs (1), (2), (3), or (4) of subsection (a) that—
‘‘(1) the alleged child pornography was produced using an
actual person or persons engaging in sexually explicit conduct;
‘‘(2) each such person was an adult at the time the material
was produced; and
‘‘(3) the defendant did not advertise, promote, present,
describe, or distribute the material in such a manner as to
convey the impression that it is or contains a visual depiction
of a minor engaging in sexually explicit conduct.’’.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–30

(b) TECHNICAL AMENDMENT.—The table of sections for chapter
110 of title 18, United States Code, is amended by adding after
the item relating to section 2252 the following:
‘‘2252A. Certain activities relating to material constituting or containing
child pornography.’’.

Subsection 4. Penalties for Sexual Exploitation of Children.
Section 2251(d) of title 18, United States Code, is amended
to read as follows:
‘‘(d) Any individual who violates, or attempts or conspires to
violate, this section shall be fined under this title or imprisoned
not less than 10 years nor more than 20 years, and both, but
if such person has one prior conviction under this chapter or chapter
109A, or under the laws of any State relating to the sexual exploitation of children, such person shall be fined under this title and
imprisoned for not less than 15 years nor more than 30 years,
but if such person has 2 or more prior convictions under this
chapter or chapter 109A, or under the laws of any State relating
to the sexual exploitation of children, such person shall be fined
under this title and imprisoned not less than 30 years nor more
than life. Any organization that violates, or attempts or conspires
to violate, this section shall be fined under this title. Whoever,
in the course of an offense under this section, engages in conduct
that results in the death of a person, shall be punished by death
or imprisoned for any term of years or for life.’’.
Subsection 5. Material Involving Sexual Exploitation of
Minors.
Section 2252 of title 18, United States Code, is amended—
by striking subsection (b) and inserting the following:
‘‘(b)(1) Whoever violates, or attempts or conspires to violate,
paragraphs (1), (2), or (3) of subsection (a) shall be fined under
this title or imprisoned not more than 15 years, or both, but if
such person has a prior conviction under this chapter or chapter
109A, or under the laws of any State relating to aggravated sexual
abuse, sexual abuse, or abusive sexual conduct involving a minor
or ward, or the production, possession, receipt, mailing, sale, distribution, shipment, or transportation of child pornography, such
person shall be fined under this title and imprisoned for not less
than 5 years nor more than 30 years.
‘‘(2) Whoever violates, or attempts or conspires to violate, paragraph (4) of subsection (a) shall be fined under this title or imprisoned not more than 5 years, or both, but if such person has a
prior conviction under this chapter or chapter 109A, or under the
laws of any State relating to the possession of child pornography,
such person shall be fined under this title and imprisoned for
not less than 2 years nor more than 10 years.’’.
Subsection 6. Privacy Protection Act Amendments.
Section 101 of the Privacy Protection Act of 1980 (42 U.S.C.
2000aa) is amended—
(1) in subsection (a)(1), by inserting before the parenthesis
at the end the following: ‘‘, or if the offense involves the production, possession, receipt, mailing, sale, distribution, shipment,
or transportation of child pornography, the sexual exploitation
of children, or the sale or purchase of children under section

110 STAT. 3009–31

PUBLIC LAW 104–208—SEPT. 30, 1996

2251, 2251A, 2252, or 2252A of title 18, United States Code’’;
and
(2) in subsection (b)(1), by inserting before the parenthesis
at the end the following: ‘‘, or if the offense involves the production, possession, receipt, mailing, sale, distribution, shipment,
or transportation of child pornography, the sexual exploitation
of children, or the sale or purchase of children under section
2251, 2251A, 2252, or 2252A of title 18, United States Code’’.
Amber
Hagerman Child
Protection Act of
1996.
18 USC 2241
note.

Subsection 7. Amber Hagerman Child Protection Act of 1996.
(a) SHORT TITLE.—This section may be cited as the ‘‘Amber
Hagerman Child Protection Act of 1996’’.
(b) AGGRAVATED SEXUAL ABUSE OF A MINOR.—Section 2241(c)
of title 18, United States Code, is amended to read as follows:
‘‘(c) WITH CHILDREN.—Whoever crosses a State line with intent
to engage in a sexual act with a person who has not attained
the age of 12 years, or in the special maritime and territorial
jurisdiction of the United States or in a Federal prison, knowingly
engages in a sexual act with another person who has not attained
the age of 12 years, or knowingly engages in a sexual act under
the circumstances described in subsections (a) and (b) with another
person who has attained the age of 12 years but has not attained
the age of 16 years (and is at least 4 years younger than that
person), or attempts to do so, shall be fined under this title, imprisoned for any term of years or life, or both. If the defendant has
previously been convicted of another Federal offense under this
subsection, or of a State offense that would have been an offense
under either such provision had the offense occurred in a Federal
prison, unless the death penalty is imposed, the defendant shall
be sentenced to life in prison.’’.
(c) SEXUAL ABUSE OF A MINOR.—Section 2243(a) of title 18,
United States Code, is amended by inserting ‘‘crosses a State line
with intent to engage in a sexual act with a person who has
not attained the age of 12 years, or’’ after ‘‘Whoever’’.

18 USC 2251
note.

Subsection 8. Severability.
If any provision of this Act, including any provision or section
of the definition of the term child pornography, an amendment
made by this Act, or the application of such provision or amendment
to any person or circumstance is held to be unconstitutional, the
remainder of this Act, including any other provision or section
of the definition of the term child pornography, the amendments
made by this Act, and the application of such to any other person
or circumstance shall not be affected thereby.
This title may be cited as the ‘‘Department of Justice Appropriations Act, 1997’’.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–32

TITLE II—DEPARTMENT OF COMMERCE AND RELATED
AGENCIES
TRADE

AND INFRASTRUCTURE

DEVELOPMENT

RELATED AGENCIES
OFFICE

OF THE

UNITED STATES TRADE REPRESENTATIVE
SALARIES AND EXPENSES

For necessary expenses of the Office of the United States Trade
Representative, including the hire of passenger motor vehicles and
the employment of experts and consultants as authorized by 5
U.S.C. 3109, $21,449,000, of which $2,500,000 shall remain available until expended: Provided, That not to exceed $98,000 shall
be available for official reception and representation expenses.
INTERNATIONAL TRADE COMMISSION
SALARIES AND EXPENSES

For necessary expenses of the International Trade Commission,
including hire of passenger motor vehicles, and services as authorized by 5 U.S.C. 3109, and not to exceed $2,500 for official reception
and representation expenses, $40,850,000, to remain available until
expended.
DEPARTMENT OF COMMERCE
INTERNATIONAL TRADE ADMINISTRATION
OPERATIONS AND ADMINISTRATION

For necessary expenses for international trade activities of
the Department of Commerce provided for by law, and engaging
in trade promotional activities abroad, including expenses of grants
and cooperative agreements for the purpose of promoting exports
of United States firms, without regard to 44 U.S.C. 3702 and
3703; full medical coverage for dependent members of immediate
families of employees stationed overseas and employees temporarily
posted overseas; travel and transportation of employees of the
United States and Foreign Commercial Service between two points
abroad, without regard to 49 U.S.C. 1517; employment of Americans
and aliens by contract for services; rental of space abroad for
periods not exceeding ten years, and expenses of alteration, repair,
or improvement; purchase or construction of temporary demountable exhibition structures for use abroad; payment of tort claims,
in the manner authorized in the first paragraph of 28 U.S.C. 2672
when such claims arise in foreign countries; not to exceed $327,000
for official representation expenses abroad; purchase of passenger
motor vehicles for official use abroad, not to exceed $30,000 per
vehicle; obtain insurance on official motor vehicles; and rent tie
lines and teletype equipment; $270,000,000, to remain available
until expended: Provided, That the provisions of the first sentence
of section 105(f) and all of section 108(c) of the Mutual Educational
and Cultural Exchange Act of 1961 (22 U.S.C. 2455(f) and 2458(c))
shall apply in carrying out these activities without regard to section
5412 of the Omnibus Trade and Competitiveness Act of 1988 (15

Department of
Commerce and
Related Agencies
Appropriations
Act, 1997.

110 STAT. 3009–33

PUBLIC LAW 104–208—SEPT. 30, 1996

U.S.C. 4912); and that for the purpose of this Act, contributions
under the provisions of the Mutual Educational and Cultural
Exchange Act shall include payment for assessments for services
provided as part of these activities.
EXPORT ADMINISTRATION
OPERATIONS AND ADMINISTRATION

For necessary expenses for export administration and national
security activities of the Department of Commerce, including costs
associated with the performance of export administration field
activities both domestically and abroad; full medical coverage for
dependent members of immediate families of employees stationed
overseas; employment of Americans and aliens by contract for services abroad; rental of space abroad for periods not exceeding ten
years, and expenses of alteration, repair, or improvement; payment
of tort claims, in the manner authorized in the first paragraph
of 28 U.S.C. 2672 when such claims arise in foreign countries;
not to exceed $15,000 for official representation expenses abroad;
awards of compensation to informers under the Export Administration Act of 1979, and as authorized by 22 U.S.C. 401(b); purchase
of passenger motor vehicles for official use and motor vehicles
for law enforcement use with special requirement vehicles eligible
for purchase without regard to any price limitation otherwise established by law; $36,000,000, to remain available until expended:
Provided, That the provisions of the first sentence of section 105(f)
and all of section 108(c) of the Mutual Educational and Cultural
Exchange Act of 1961 (22 U.S.C. 2455(f) and 2458(c)) shall apply
in carrying out these activities: Provided further, That payments
and contributions collected and accepted for materials or services
provided as part of such activities may be retained for use in
covering the cost of such activities, and for providing information
to the public with respect to the export administration and national
security activities of the Department of Commerce and other export
control programs of the United States and other governments.
For an additional amount for nonproliferation efforts to prevent
illegal exports of chemical weapon precursors, biological agents,
nuclear weapons and missile development equipment, $3,900,000,
to remain available until expended: Provided, That the entire
amount is designated by Congress as an emergency requirement
pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and
Emergency Deficit Control Act of 1985, as amended.
ECONOMIC DEVELOPMENT ADMINISTRATION
ECONOMIC DEVELOPMENT ASSISTANCE PROGRAMS

For grants for economic development assistance as provided
by the Public Works and Economic Development Act of 1965, as
amended, Public Law 91–304, and such laws that were in effect
immediately before September 30, 1982, and for trade adjustment
assistance, $328,500,000: Provided, That none of the funds appropriated or otherwise made available under this heading may be
used directly or indirectly for attorneys’ or consultants’ fees in
connection with securing grants and contracts made by the Economic Development Administration: Provided further, That, notwithstanding any other provision of law, the Secretary of Commerce

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–34

may provide financial assistance for projects to be located on military installations closed or scheduled for closure or realignment
to grantees eligible for assistance under the Public Works and
Economic Development Act of 1965, as amended, without it being
required that the grantee have title or ability to obtain a lease
for the property, for the useful life of the project, when in the
opinion of the Secretary of Commerce, such financial assistance
is necessary for the economic development of the area: Provided
further, That the Secretary of Commerce may, as the Secretary
considers appropriate, consult with the Secretary of Defense regarding the title to land on military installations closed or scheduled
for closure or realignment.
SALARIES AND EXPENSES

For necessary expenses of administering the economic development assistance programs as provided for by law, $20,036,000:
Provided, That these funds may be used to monitor projects
approved pursuant to title I of the Public Works Employment
Act of 1976, as amended, title II of the Trade Act of 1974, as
amended, and the Community Emergency Drought Relief Act of
1977.
MINORITY BUSINESS DEVELOPMENT AGENCY
MINORITY BUSINESS DEVELOPMENT

For necessary expenses of the Department of Commerce in
fostering, promoting, and developing minority business enterprise,
including expenses of grants, contracts, and other agreements with
public or private organizations, $28,000,000: Provided, That of the
total amount provided, $2,000,000 shall be available for obligation
and expenditure only for projects jointly developed, implemented
and administered with the Small Business Administration.
ECONOMIC

AND INFORMATION INFRASTRUCTURE

ECONOMIC

AND

STATISTICAL ANALYSIS

SALARIES AND EXPENSES

For necessary expenses, as authorized by law, of economic
and statistical analysis programs of the Department of Commerce,
$45,900,000, to remain available until September 30, 1998.
ECONOMICS AND STATISTICS ADMINISTRATION REVOLVING FUND

The Secretary of Commerce is authorized to disseminate economic and statistical data products as authorized by sections 1,
2, and 4 of Public Law 91–412 (15 U.S.C. 1525–1527) and, notwithstanding section 5412 of the Omnibus Trade and Competitiveness
Act of 1988 (15 U.S.C. 4912), charge fees necessary to recover
the full costs incurred in their production. Notwithstanding 31
U.S.C. 3302, receipts received from these data dissemination activities shall be credited to this account, to be available for carrying
out these purposes without further appropriation.

15 USC 1527a
note.

110 STAT. 3009–35

PUBLIC LAW 104–208—SEPT. 30, 1996
BUREAU

OF THE

CENSUS

SALARIES AND EXPENSES

For expenses necessary for collecting, compiling, analyzing,
preparing, and publishing statistics, provided for by law,
$135,000,000.
PERIODIC CENSUSES AND PROGRAMS

For expenses necessary to collect and publish statistics for
periodic censuses and programs provided for by law, $210,500,000,
to remain available until expended.
NATIONAL TELECOMMUNICATIONS AND INFORMATION
ADMINISTRATION
SALARIES AND EXPENSES

47 USC 903 note.

For necessary expenses, as provided for by law, of the National
Telecommunications and Information Administration (NTIA),
$15,000,000, to remain available until expended: Provided, That
notwithstanding 31 U.S.C. 1535(d), the Secretary of Commerce shall
charge Federal agencies for costs incurred in spectrum management,
analysis, and operations, and related services and such fees shall
be retained and used as offsetting collections for costs of such
spectrum services, to remain available until expended: Provided
further, That hereafter, notwithstanding any other provision of law,
NTIA shall not authorize spectrum use or provide any spectrum
functions pursuant to the NTIA Organization Act, 47 U.S.C. §§ 902–
903, to any Federal entity without reimbursement as required by
NTIA for such spectrum management costs, and Federal entities
withholding payment of such cost shall not use spectrum: Provided
further, That the Secretary of Commerce is authorized to retain
and use as offsetting collections all funds transferred, or previously
transferred, from other Government agencies for all costs incurred
in telecommunications research, engineering, and related activities
by the Institute for Telecommunication Sciences of the NTIA, in
furtherance of its assigned functions under this paragraph, and
such funds received from other Government agencies shall remain
available until expended.
PUBLIC BROADCASTING FACILITIES, PLANNING AND CONSTRUCTION

For grants authorized by section 392 of the Communications
Act of 1934, as amended, $15,250,000, to remain available until
expended as authorized by section 391 of the Act, as amended:
Provided, That not to exceed $1,500,000 shall be available for
program administration as authorized by section 391 of the Act:
Provided further, That notwithstanding the provisions of section
391 of the Act, the prior year unobligated balances may be made
available for grants for projects for which applications have been
submitted and approved during any fiscal year.
INFORMATION INFRASTRUCTURE GRANTS

For grants authorized by section 392 of the Communications
Act of 1934, as amended, $21,490,000, to remain available until
expended as authorized by section 391 of the Act, as amended:

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–36

Provided, That not to exceed $3,000,000 shall be available for
program administration and other support activities as authorized
by section 391: Provided further, That of the funds appropriated
herein, not to exceed 5 percent may be available for telecommunications research activities for projects related directly to the development of a national information infrastructure: Provided further,
That notwithstanding the requirements of section 392(a) and 392(c)
of the Act, these funds may be used for the planning and construction of telecommunications networks for the provision of educational, cultural, health care, public information, public safety,
or other social services.
PATENT

AND

TRADEMARK OFFICE

SALARIES AND EXPENSES

For necessary expenses of the Patent and Trademark Office
provided for by law, including defense of suits instituted against
the Commissioner of Patents and Trademarks, $61,252,000, to
remain available until expended: Provided, That the funds made
available under this heading are to be derived from deposits in
the Patent and Trademark Office Fee Surcharge Fund as authorized
by law: Provided further, That the amounts made available under
the Fund shall not exceed amounts deposited; and such fees as
shall be collected pursuant to 15 U.S.C. 1113 and 35 U.S.C. 41
and 376, shall remain available until expended.
TECHNOLOGY ADMINISTRATION
UNDER SECRETARY FOR TECHNOLOGY/OFFICE OF TECHNOLOGY POLICY
SALARIES AND EXPENSES

For necessary expenses for the Under Secretary for Technology/
Office of Technology Policy, $9,500,000: Provided, That $2,500,000
of the total amount provided under this heading shall be available
to support the United States-Israel Science and Technology Commission.
SCIENCE
NATIONAL INSTITUTE

AND

OF

TECHNOLOGY

STANDARDS

AND

TECHNOLOGY

SCIENTIFIC AND TECHNICAL RESEARCH AND SERVICES

For necessary expenses of the National Institute of Standards
and Technology, $268,000,000, to remain available until expended,
of which not to exceed $1,625,000 may be transferred to the ‘‘Working Capital Fund’’.
INDUSTRIAL TECHNOLOGY SERVICES

For necessary expenses of the Manufacturing Extension Partnership of the National Institute of Standards and Technology,
$95,000,000, to remain available until expended, of which not to
exceed $300,000 may be transferred to the ‘‘Working Capital Fund’’:
Provided, That notwithstanding the time limitations imposed by
15 U.S.C. 278k(c) (1) and (5) on the duration of Federal financial
assistance that may be awarded by the Secretary of Commerce

15 USC 278k
note.

110 STAT. 3009–37

PUBLIC LAW 104–208—SEPT. 30, 1996

to Regional Centers for the transfer of Manufacturing Technology
(‘‘Centers’’), such Federal financial assistance for a Center may
continue beyond six years and may be renewed for additional periods, not to exceed one year, at a rate not to exceed one-third
of the Center’s total annual costs, subject before any such renewal
to a positive evaluation of the Center and to a finding by the
Secretary of Commerce that continuation of Federal funding to
the Center is in the best interest of the Regional Centers for
the transfer of Manufacturing Technology Program.
In addition, for necessary expenses of the Advanced Technology
Program of the National Institute of Standards and Technology,
$225,000,000, to remain available until expended, of which not
to exceed $500,000 may be transferred to the ‘‘Working Capital
Fund.’’
NATIONAL OCEANIC

AND

ATMOSPHERIC ADMINISTRATION

OPERATIONS, RESEARCH, AND FACILITIES
(INCLUDING TRANSFER OF FUNDS)

33 USC 851.

For necessary expenses of activities authorized by law for the
National Oceanic and Atmospheric Administration, including
acquisition, maintenance, operation, and hire of aircraft; not to
exceed 299 commissioned officers on the active list as of September
30, 1997; grants, contracts, or other payments to nonprofit organizations for the purposes of conducting activities pursuant to cooperative agreements; and alteration, modernization, and relocation of
facilities as authorized by 33 U.S.C. 883i; $1,854,067,000, to remain
available until expended: Provided, That notwithstanding 31 U.S.C.
3302 but consistent with other existing law, fees shall be assessed,
collected, and credited to this appropriation as offsetting collections
to be available until expended, to recover the costs of administering
aeronautical charting programs: Provided further, That the sum
herein appropriated from the general fund shall be reduced as
such additional fees are received during fiscal year 1997, so as
to result in a final general fund appropriation estimated at not
more than $1,851,067,000: Provided further, That any such additional fees received in excess of $3,000,000 in fiscal year 1997
shall not be available for obligation until October 1, 1997: Provided
further, That fees and donations received by the National Ocean
Service for the management of the national marine sanctuaries
may be retained and used for the salaries and expenses associated
with those activities, notwithstanding 31 U.S.C. 3302: Provided
further, That in addition, $66,000,000 shall be derived by transfer
from the fund entitled ‘‘Promote and Develop Fishery Products
and Research Pertaining to American Fisheries’’: Provided further,
That grants to States pursuant to sections 306 and 306A of the
Coastal Zone Management Act of 1972, as amended, shall not
exceed $2,000,000: Provided further, That not later than November
15, 1996, the Department of Commerce, in conjunction with the
National Oceanic and Atmospheric Administration, shall submit
to the appropriate committees of the Congress, a long-term plan
and a legislative proposal necessary to implement such plan regarding the continuation of a National Oceanic and Atmospheric
Administration commissioned corps.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–38

COASTAL ZONE MANAGEMENT FUND

Of amounts collected pursuant to section 308 of the Coastal
Zone Management Act of 1972 (16 U.S.C. 1456a), not to exceed
$7,800,000, for purposes set forth in sections 308(b)(2)(A),
308(b)(2)(B)(v), and 315(e) of such Act.
CONSTRUCTION

For repair and modification of, and additions to, existing facilities and construction of new facilities, and for facility planning
and design and land acquisition not otherwise provided for the
National Oceanic and Atmospheric Administration, $58,250,000,
to remain available until expended, of which $8,500,000 shall be
available only for a grant to the University of New Hampshire
for construction and related expenses for an environmental technology facility.
FLEET MODERNIZATION, SHIPBUILDING AND CONVERSION

For expenses necessary for the repair, acquisition, leasing, or
conversion of vessels, including related equipment to maintain and
modernize the existing fleet and to continue planning the modernization of the fleet, for the National Oceanic and Atmospheric
Administration, $8,000,000, to remain available until expended.
FISHING VESSEL AND GEAR DAMAGE COMPENSATION FUND

For carrying out the provisions of section 3 of Public Law
95–376, not to exceed $200,000, to be derived from receipts collected
pursuant to subsections (b) and (f) of section 10 of the Fishermen’s
Protective Act of 1967 (22 U.S.C. 1980), to remain available until
expended.
FISHERMEN’S CONTINGENCY FUND

For carrying out the provisions of title IV of Public Law 95–
372, not to exceed $1,000,000, to be derived from receipts collected
pursuant to that Act, to remain available until expended.
FOREIGN FISHING OBSERVER FUND

For expenses necessary to carry out the provisions of the Atlantic Tunas Convention Act of 1975, as amended (Public Law 96–
339), the Magnuson Fishery Conservation and Management Act
of 1976, as amended (Public Law 100–627), and the American
Fisheries Promotion Act (Public Law 96–561), to be derived from
the fees imposed under the foreign fishery observer program authorized by these Acts, not to exceed $196,000, to remain available
until expended.
FISHING VESSEL OBLIGATIONS GUARANTEES

For the cost of guaranteed loans, $250,000, as authorized by
the Merchant Marine Act of 1936, as amended: Provided, That
such costs, including the cost of modifying such loans, shall be
as defined in section 502 of the Congressional Budget Act of 1974:
Provided further, That none of the funds made available under
this heading may be used to guarantee loans for any new fishing

110 STAT. 3009–39

PUBLIC LAW 104–208—SEPT. 30, 1996

vessel that will increase the harvesting capacity in any United
States fishery.
GENERAL ADMINISTRATION
SALARIES AND EXPENSES

For expenses necessary for the general administration of the
Department of Commerce provided for by law, including not to
exceed $3,000 for official entertainment, $28,490,000.
OFFICE OF INSPECTOR GENERAL

For necessary expenses of the Office of Inspector General in
carrying out the provisions of the Inspector General Act of 1978,
as amended (5 U.S.C. App. 1–11 as amended by Public Law 100–
504), $20,140,000.
NATIONAL INSTITUTE

OF

STANDARDS

AND

TECHNOLOGY

CONSTRUCTION OF RESEARCH FACILITIES
(RESCISSION)

Of the obligated and unobligated balances available under this
heading, $16,000,000 are rescinded.
NATIONAL OCEANIC

AND

ATMOSPHERIC ADMINISTRATION

OPERATIONS, RESEARCH, AND FACILITIES
(RESCISSION)

Of the unobligated balances available under this heading,
$20,000,000 are rescinded.
GENERAL PROVISIONS—DEPARTMENT

13 USC 23 note.

OF

COMMERCE

SEC. 201. During the current fiscal year, applicable appropriations and funds made available to the Department of Commerce
by this Act shall be available for the activities specified in the
Act of October 26, 1949 (15 U.S.C. 1514), to the extent and in
the manner prescribed by the Act, and, notwithstanding 31 U.S.C.
3324, may be used for advanced payments not otherwise authorized
only upon the certification of officials designated by the Secretary
that such payments are in the public interest.
SEC. 202. During the current fiscal year, appropriations made
available to the Department of Commerce by this Act for salaries
and expenses shall be available for hire of passenger motor vehicles
as authorized by 31 U.S.C. 1343 and 1344; services as authorized
by 5 U.S.C. 3109; and uniforms or allowances therefor, as authorized
by law (5 U.S.C. 5901–5902).
SEC. 203. None of the funds made available by this Act may
be used to support the hurricane reconnaissance aircraft and activities that are under the control of the United States Air Force
or the United States Air Force Reserve.
SEC. 204. None of the funds provided in this or any previous
Act, or hereinafter made available to the Department of Commerce,
shall be available to reimburse the Unemployment Trust Fund
or any other fund or account of the Treasury to pay for any expenses

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–40

paid before October 1, 1992, as authorized by section 8501 of title
5, United States Code, for services performed after April 20, 1990,
by individuals appointed to temporary positions within the Bureau
of the Census for purposes relating to the 1990 decennial census
of population.
SEC. 205. Not to exceed 5 percent of any appropriation made
available for the current fiscal year for the Department of Commerce
in this Act may be transferred between such appropriations, but
no such appropriation shall be increased by more than 10 percent
by any such transfers: Provided, That any transfer pursuant to
this section shall be treated as a reprogramming of funds under
section 605 of this Act and shall not be available for obligation
or expenditure except in compliance with the procedures set forth
in that section.
SEC. 206. (a) Should legislation be enacted to dismantle or
reorganize the Department of Commerce, the Secretary of Commerce, no later than 90 days thereafter, shall submit to the Committees on Appropriations of the House and the Senate a plan for
transferring funds provided in this Act to the appropriate successor
organizations: Provided, That the plan shall include a proposal
for transferring or rescinding funds appropriated herein for agencies
or programs terminated under such legislation: Provided further,
That such plan shall be transmitted in accordance with section
605 of this Act.
(b) The Secretary of Commerce or the appropriate head of
any successor organization(s) may use any available funds to carry
out legislation dismantling or reorganizing the Department of Commerce to cover the costs of actions relating to the abolishment,
reorganization, or transfer of functions and any related personnel
action, including voluntary separation incentives if authorized by
such legislation: Provided, That the authority to transfer funds
between appropriations accounts that may be necessary to carry
out this section is provided in addition to authorities included
under section 205 of this Act: Provided further, That use of funds
to carry out this section shall be treated as a reprogramming
of funds under section 605 of this Act and shall not be available
for obligation or expenditure except in compliance with the procedures set forth in that section.
SEC. 207. Any costs incurred by a Department or agency funded
under this title resulting from personnel actions taken in response
to funding reductions included in this title shall be absorbed within
the total budgetary resources available to such Department or
agency: Provided, That the authority to transfer funds between
appropriations accounts as may be necessary to carry out this
section is provided in addition to authorities included elsewhere
in this Act: Provided further, That use of funds to carry out this
section shall be treated as a reprogramming of funds under section
605 of this Act and shall not be available for obligation or expenditure except in compliance with the procedures set forth in that
section.
SEC. 208. None of the funds appropriated under this Act or
any other Act henceforth may be used to develop new fishery
management plans, amendments, or regulations which create new
individual fishing quota programs (whether such quotas are
transferable or not) or to implement any such plans, amendments
or regulations approved by a Regional Fishery Management Council
or the Secretary after January 4, 1995, until offsetting fees to

16 USC 1851
note.

110 STAT. 3009–41

13 USC 11 note.

16 USC 1801
note.

16 USC 1801
note.

PUBLIC LAW 104–208—SEPT. 30, 1996

pay for the cost of administering such plans, amendments, or regulations are expressly authorized under the Magnuson Fishery Conservation and Management Act (16 U.S.C. 1801 et seq.). This restriction shall also apply to any program relating to the Gulf of Mexico
commercial red snapper fishery that authorizes the consolidation
of licenses, permits or endorsements that result in different trip
limits for vessels in the same class. This restriction shall not apply
in any way to the North Pacific halibut and sablefish, South Atlantic
wreckfish, or the Mid-Atlantic surfclam and ocean (including mahogany) quohog individual fishing quota programs. The term ‘‘individual fishing quota’’ does not include a community development quota.
SEC. 209. The Secretary may award contracts for hydrographic,
geodetic, and photogrammetric surveying and mapping services in
accordance with title IX of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 541 et seq.).
SEC. 210. There is hereby established the Bureau of the Census
Working Capital Fund, which shall be available without fiscal year
limitation, for expenses and equipment necessary for the maintenance and operation of such services and projects as the Director
of the Census Bureau determines may be performed more advantageously when centralized: Provided, That such central services
shall, to the fullest extent practicable, be used to make unnecessary
the maintenance of separate like services in the divisions and
offices of the Bureau: Provided further, That a separate schedule
of expenditures and reimbursements, and a statement of the current
assets and liabilities of the Working Capital Fund as of the close
of the last completed fiscal year, shall be prepared each year:
Provided further, That notwithstanding 31 U.S.C. 3302, the Working
Capital Fund may be credited with advances and reimbursements
from applicable appropriations of the Bureau and from funds of
other agencies or entities for services furnished pursuant to law:
Provided further, That any inventories, equipment, and other assets
pertaining to the services to be provided by such funds, either
on hand or on order, less the related liabilities or unpaid obligations,
and any appropriations made hereafter for the purpose of providing
capital, shall be used to capitalize the Working Capital Fund:
Provided further, That the Working Capital Fund shall provide
for centralized services at rates which will return in full all expenses
of operation, including depreciation of fund plant and equipment,
amortization of automated data processing software and hardware
systems, and an amount necessary to maintain a reasonable operating reserve as determined by the Director.
SEC. 211. (a) Effective 15 days after the enactment of the
Sustainable Fisheries Act, section 1 of the Magnuson Fishery Conservation and Management Act (16 U.S.C. 1801) shall be amended
to read as follows: ‘‘That this Act may be cited as the ‘MagnusonStevens Fishery Conservation and Management Act’.’’
(b) Effective 15 days after the enactment of the Sustainable
Fisheries Act, all references to the Magnuson Fishery Conservation
and Management Act shall be redesignated as references to the
Magnuson-Stevens Fishery Conservation and Management Act.
This title may be cited as the ‘‘Department of Commerce and
Related Agencies Appropriations Act, 1997’’.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–42
The Judiciary
Appropriations
Act, 1997.

TITLE III—THE JUDICIARY
SUPREME COURT

OF THE

UNITED STATES

SALARIES AND EXPENSES

For expenses necessary for the operation of the Supreme Court,
as required by law, excluding care of the building and grounds,
including purchase or hire, driving, maintenance, and operation
of an automobile for the Chief Justice, not to exceed $10,000 for
the purpose of transporting Associate Justices, and hire of passenger
motor vehicles as authorized by 31 U.S.C. 1343 and 1344; not
to exceed $10,000 for official reception and representation expenses;
and for miscellaneous expenses, to be expended as the Chief Justice
may approve; $27,157,000.
CARE OF THE BUILDING AND GROUNDS

For such expenditures as may be necessary to enable the
Architect of the Capitol to carry out the duties imposed upon
him by the Act approved May 7, 1934 (40 U.S.C. 13a–13b),
$2,800,000, of which $260,000 shall remain available until
expended.
UNITED STATES COURT

OF

APPEALS

FOR THE

FEDERAL CIRCUIT

SALARIES AND EXPENSES

For salaries of the chief judge, judges, and other officers and
employees, and for necessary expenses of the court, as authorized
by law, $15,013,000.
UNITED STATES COURT

OF INTERNATIONAL

TRADE

SALARIES AND EXPENSES

For salaries of the chief judge and eight judges, salaries of
the officers and employees of the court, services as authorized
by 5 U.S.C. 3109, and necessary expenses of the court, as authorized
by law, $11,114,000.
COURTS

OF

APPEALS, DISTRICT COURTS,
SERVICES

AND

OTHER JUDICIAL

SALARIES AND EXPENSES
(INCLUDING TRANSFER OF FUNDS)

For the salaries of circuit and district judges (including judges
of the territorial courts of the United States), justices and judges
retired from office or from regular active service, judges of the
United States Court of Federal Claims, bankruptcy judges, magistrate judges, and all other officers and employees of the Federal
Judiciary not otherwise specifically provided for, and necessary
expenses of the courts, as authorized by law, $2,556,000,000 (including the purchase of firearms and ammunition); of which not to
exceed $13,454,000 shall remain available until expended for space
alteration projects; of which $500,000 shall be transferred to the
Commission on Structural Alternatives for the Federal Courts of

110 STAT. 3009–43

PUBLIC LAW 104–208—SEPT. 30, 1996

Appeals only after legislation is enacted to establish the Commission; of which not to exceed $10,000,000 shall remain available
until expended for furniture and furnishings related to new space
alteration and construction projects; and of which $500,000 is to
remain available until expended for acquisition of books, periodicals,
and newspapers, and all other legal reference materials, including
subscriptions.
In addition, for expenses of the United States Court of Federal
Claims associated with processing cases under the National Childhood Vaccine Injury Act of 1986, not to exceed $2,390,000, to be
appropriated from the Vaccine Injury Compensation Trust Fund.
For an additional amount for expenses relating to additional
workload from the Antiterrorism and Effective Death Penalty Act
of 1996, and for Court Security needs, $10,000,000, to remain available until expended: Provided, That the entire amount is designated
by Congress as an emergency requirement pursuant to section
251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended: Provided further, That the amount
not previously designated by the President as an emergency requirement shall be available only to the extent an official budget request,
for a specific dollar amount that includes designation of the entire
amount of the request as an emergency requirement, as defined
in the Balanced Budget and Emergency Deficit Control Act of
1985, as amended, is transmitted to Congress.
VIOLENT CRIME REDUCTION PROGRAMS

For activities of the Federal Judiciary as authorized by law,
$30,000,000, to remain available until expended, which shall be
derived from the Violent Crime Reduction Trust Fund, as authorized
by section 190001(a) of Public Law 103–322.
DEFENDER SERVICES

For the operation of Federal Public Defender and Community
Defender organizations; the compensation and reimbursement of
expenses of attorneys appointed to represent persons under the
Criminal Justice Act of 1964, as amended; the compensation and
reimbursement of expenses of persons furnishing investigative,
expert and other services under the Criminal Justice Act (18 U.S.C.
3006A(e)); the compensation (in accordance with Criminal Justice
Act maximums) and reimbursement of expenses of attorneys
appointed to assist the court in criminal cases where the defendant
has waived representation by counsel; the compensation and
reimbursement of travel expenses of guardians ad litem acting
on behalf of financially eligible minor or incompetent offenders
in connection with transfers from the United States to foreign
countries with which the United States has a treaty for the execution of penal sentences; and the compensation of attorneys apFEES OF JURORS AND COMMISSIONERS

For fees and expenses of jurors as authorized by 28 U.S.C.
1871 and 1876; compensation of jury commissioners as authorized
by 28 U.S.C. 1863; and compensation of commissioners appointed
in condemnation cases pursuant to rule 71A(h) of the Federal
Rules of Civil Procedure (28 U.S.C. Appendix Rule 71A(h));
$67,000,000, to remain available until expended: Provided, That

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–44

the compensation of land commissioners shall not exceed the daily
equivalent of the highest rate payable under section 5332 of title
5, United States Code.
COURT SECURITY

For necessary expenses, not otherwise provided for, incident
to the procurement, installation, and maintenance of security equipment and protective services for the United States Courts in courtrooms and adjacent areas, including building ingress-egress control,
inspection of packages, directed security patrols, and other similar
activities as authorized by section 1010 of the Judicial Improvement
and Access to Justice Act (Public Law 100–702); $127,000,000,
to be expended directly or transferred to the United States Marshals
Service which shall be responsible for administering elements of
the Judicial Security Program consistent with standards or guidelines agreed to by the Director of the Administrative Office of
the United States Courts and the Attorney General.
ADMINISTRATIVE OFFICE

OF THE

UNITED STATES COURTS

SALARIES AND EXPENSES

For necessary expenses of the Administrative Office of the
United States Courts as authorized by law, including travel as
authorized by 31 U.S.C. 1345, hire of a passenger motor vehicle
as authorized by 31 U.S.C. 1343(b), advertising and rent in the
District of Columbia and elsewhere, $49,450,000, of which not to
exceed $7,500 is authorized for official reception and representation
expenses.
FEDERAL JUDICIAL CENTER
SALARIES AND EXPENSES

For necessary expenses of the Federal Judicial Center, as
authorized by Public Law 90–219, $17,495,000; of which $1,800,000
shall remain available through September 30, 1998, to provide
education and training to Federal court personnel; and of which
not to exceed $1,000 is authorized for official reception and representation expenses.
JUDICIAL RETIREMENT FUNDS
PAYMENT TO JUDICIARY TRUST FUNDS

For payment to the Judicial Officers’ Retirement Fund, as
authorized by 28 U.S.C. 377(o), $21,000,000, to the Judicial Survivors’ Annuities Fund, as authorized by 28 U.S.C. 376(c), $7,300,000,
and to the United States Court of Federal Claims Judges’ Retirement Fund, as authorized by 28 U.S.C. 178(l), $1,900,000.
UNITED STATES SENTENCING COMMISSION
SALARIES AND EXPENSES

For the salaries and expenses necessary to carry out the provisions of chapter 58 of title 28, United States Code, $8,490,000,
of which not to exceed $1,000 is authorized for official reception
and representation expenses.

110 STAT. 3009–45

PUBLIC LAW 104–208—SEPT. 30, 1996
GENERAL PROVISIONS—THE JUDICIARY

18 USC 3626
note.

SEC. 301. Appropriations and authorizations made in this title
which are available for salaries and expenses shall be available
for services as authorized by 5 U.S.C. 3109.
SEC. 302. Appropriations made in this title shall be available
for salaries and expenses of the Special Court established under
the Regional Rail Reorganization Act of 1973, Public Law 93–
236.
SEC. 303. Not to exceed 5 percent of any appropriation made
available for the current fiscal year for the Judiciary in this Act
may be transferred between such appropriations, but no such appropriation, except ‘‘Courts of Appeals, District Courts, and other
Judicial Services, Defender Services’’ and ‘‘Courts of Appeals, District Courts, and other Judicial Services, Fees of Jurors and
Commissioners’’, shall be increased by more than 10 percent by
any such transfers: Provided, That any transfer pursuant to this
section shall be treated as a reprogramming of funds under section
605 of this Act and shall not be available for obligation or expenditure except in compliance with the procedures set forth in that
section.
SEC. 304. Notwithstanding any other provision of law, the
salaries and expenses appropriation for district courts, courts of
appeals, and other judicial services shall be available for official
reception and representation expenses of the Judicial Conference
of the United States: Provided, That such available funds shall
not exceed $10,000 and shall be administered by the Director of
the Administrative Office of the United States Courts in his capacity
as Secretary of the Judicial Conference.
SEC. 305. Section 612(l) of title 28, United States Code, shall
be amended as follows: strike ‘‘1997’’, and insert in lieu thereof
‘‘1998’’.
SEC. 306. None of the funds available to the Judiciary in
fiscal years 1996 and 1997 and hereafter shall be available for
expenses authorized pursuant to section 802(a) of title VIII of
section 101(a) of title I of the Omnibus Consolidated Rescissions
and Appropriations Act of 1996, Public Law 104–134, for costs
related to the appointment of Special Masters prior to April 26,
1996.
SEC. 307. The United States courthouse at 310 West Sixth
Street in Medford, Oregon, shall be known and designated as the
‘‘James A. Redden Federal Courthouse’’.
Any reference in a law, map, regulation, document, paper,
or other record of the United States to the United States courthouse
at 310 West Sixth Street in Medford, Oregon, shall be deemed
to be a reference to the ‘‘James A. Redden Federal Courthouse’’.
This title may be cited as ‘‘The Judiciary Appropriations Act,
1997’’.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–46

TITLE IV—DEPARTMENT OF STATE AND RELATED
AGENCIES
DEPARTMENT OF STATE
ADMINISTRATION

OF

Department of
State and
Related Agencies
Appropriations
Act, 1997.

FOREIGN AFFAIRS

DIPLOMATIC AND CONSULAR PROGRAMS

For necessary expenses of the Department of State and the
Foreign Service not otherwise provided for, including expenses
authorized by the State Department Basic Authorities Act of 1956,
as amended; representation to certain international organizations
in which the United States participates pursuant to treaties, ratified
pursuant to the advice and consent of the Senate, or specific Acts
of Congress; acquisition by exchange or purchase of passenger motor
vehicles as authorized by 31 U.S.C. 1343, 40 U.S.C. 481(c) and
22 U.S.C. 2674; and for expenses of general administration;
$1,700,450,000: Provided, That notwithstanding section 140(a)(5),
and the second sentence of section 140(a)(3), of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995 (Public Law
103–236), not to exceed $150,000,000 of fees may be collected during
fiscal year 1997 under the authority of section 140(a)(1) of that
Act: Provided further, That all fees collected under the preceding
proviso shall be deposited in fiscal year 1997 as an offsetting
collection to appropriations made under this heading to recover
the costs of providing consular services and shall remain available
until expended: Provided further, That in fiscal year 1998, a system
shall be in place that allocates to each department and agency
the full cost of its presence outside of the United States.
Of the funds provided under this heading, $24,856,000 shall
be available only for the Diplomatic Telecommunications Service
for operation of existing base services and not to exceed $17,230,000
shall be available only for the enhancement of the Diplomatic
Telecommunications Service and shall remain available until
expended. Of the latter amount, $2,500,000 shall not be made
available until expiration of the 15 day period beginning on the
date when the Secretary of State and the Director of the Diplomatic
Telecommunications Service submit the pilot program report
required by section 507 of Public Law 103–317.
In addition, not to exceed $700,000 in registration fees collected
pursuant to section 38 of the Arms Export Control Act, as amended,
may be used in accordance with section 45 of the State Department
Basic Authorities Act of 1956 (22 U.S.C. 2717); and in addition
not to exceed $1,223,000 shall be derived from fees collected from
other executive agencies for lease or use of facilities located at
the International Center in accordance with section 4 of the International Center Act (Public Law 90–553), as amended; and in
addition, as authorized by section 5 of such Act $450,000, to be
derived from the reserve authorized by that section, to be used
for the purposes set out in that section; and in addition not to
exceed $15,000 which shall be derived from reimbursements, surcharges, and fees for use of Blair House facilities in accordance
with section 46 of the State of Department Basic Authorities Act
of 1956 (22 U.S.C. 2718(a)).
Notwithstanding section 402 of this Act, not to exceed 20 percent of the amounts made available in this Act in the appropriation
accounts ‘‘Diplomatic and Consular Programs’’ and ‘‘Salaries and

8 USC 1351 note.

22 USC 2695b.

110 STAT. 3009–47

PUBLIC LAW 104–208—SEPT. 30, 1996

Expenses’’ under the heading ‘‘Administration of Foreign Affairs’’
may be transferred between such appropriation accounts: Provided,
That any transfer pursuant to this sentence shall be treated as
a reprogramming of funds under section 605 of this Act and shall
not be available for obligation or expenditure except in compliance
with the procedures set forth in that section.
For an additional amount for counterterrorism requirements
overseas, including security guards and equipment, $23,700,000,
to remain available until expended: Provided, That the entire
amount is designated by Congress as an emergency requirement
pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and
Emergency Deficit Control Act of 1985, as amended.
SALARIES AND EXPENSES

For expenses necessary for the general administration of the
Department of State and the Foreign Service, provided for by law,
including expenses authorized by section 9 of the Act of August
31, 1964, as amended (31 U.S.C. 3721), and the State Department
Basic Authorities Act of 1956, as amended, $352,300,000.
CAPITAL INVESTMENT FUND

For necessary expenses of the Capital Investment Fund,
$24,600,000, to remain available until expended, as authorized in
Public Law 103–236: Provided, That section 135(e) of Public Law
103–236 shall not apply to funds appropriated under this heading.
OFFICE OF INSPECTOR GENERAL

5 USC app.

For necessary expenses of the Office of Inspector General in
carrying out the provisions of the Inspector General Act of 1978,
as amended (5 U.S.C. App.), $27,495,000, notwithstanding section
209(a)(1) of the Foreign Service Act of 1980, as amended (Public
Law 96–465), as it relates to post inspections: Provided, That notwithstanding any other provision of law, the merger of the Office
of Inspector General of the United States Information Agency with
the Office of Inspector General of the Department of State provided
for in the Departments of Commerce, Justice, and State, the
Judiciary and Related Agencies Appropriations Act, 1996, contained
in Public Law 104–134, is effective hereafter.
REPRESENTATION ALLOWANCES

For representation allowances as authorized by section 905
of the Foreign Service Act of 1980, as amended (22 U.S.C. 4085),
$4,490,000.
PROTECTION OF FOREIGN MISSIONS AND OFFICIALS

For expenses, not otherwise provided, to enable the Secretary
of State to provide for extraordinary protective services in accordance with the provisions of section 214 of the State Department
Basic Authorities Act of 1956 (22 U.S.C. 4314) and 3 U.S.C. 208,
$8,332,000, to remain available until September 30, 1998.
SECURITY AND MAINTENANCE OF UNITED STATES MISSIONS

For necessary expenses for carrying out the Foreign Service
Buildings Act of 1926, as amended (22 U.S.C. 292–300), and the

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–48

Diplomatic Security Construction Program as authorized by title
IV of the Omnibus Diplomatic Security and Antiterrorism Act of
1986 (22 U.S.C. 4851), $364,495,000, to remain available until
expended as authorized by section 24(c) of the State Department
Basic Authorities Act of 1956 (22 U.S.C. 2696(c)): Provided, That
none of the funds appropriated in this paragraph shall be available
for acquisition of furniture and furnishings and generators for other
departments and agencies.
For an additional amount for security improvements, necessary
relocation expenses, and security equipment for United States diplomatic facilities and missions overseas, $24,825,000, to remain available until expended: Provided, That of this amount $9,400,000
is for security projects on behalf of United States and Foreign
Commercial Service missions and $1,125,000 is for security projects
on behalf of United States Information Agency missions: Provided
further, That the entire amount is designated by Congress as an
emergency requirement pursuant to section 251(b)(2)(D)(i) of the
Balanced Budget and Emergency Deficit Control Act of 1985, as
amended: Provided further, That the amount not previously designated by the President as an emergency requirement shall be
available only to the extent an official budget request, for a specific
dollar amount that includes designation of the entire amount of
the request as an emergency requirement, as defined in the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, is transmitted to Congress.
EMERGENCIES IN THE DIPLOMATIC AND CONSULAR SERVICE

For expenses necessary to enable the Secretary of State to
meet unforeseen emergencies arising in the Diplomatic and Consular Service pursuant to the requirement of 31 U.S.C. 3526(e),
$5,800,000, to remain available until expended as authorized by
section 24(c) of the State Department Basic Authorities Act of
1956 (22 U.S.C. 2696(c)), of which not to exceed $1,000,000 may
be transferred to and merged with the Repatriation Loans Program
Account, subject to the same terms and conditions.
REPATRIATION LOANS PROGRAM ACCOUNT

For the cost of direct loans, $593,000, as authorized by section
4 of the State Department Basic Authorities Act of 1956 (22 U.S.C.
2671): Provided, That such costs, including the cost of modifying
such loans, shall be as defined in section 502 of the Congressional
Budget Act of 1974. In addition, for administrative expenses necessary to carry out the direct loan program, $663,000 which may
be transferred to and merged with the Salaries and Expenses
account under Administration of Foreign Affairs.
PAYMENT TO THE AMERICAN INSTITUTE IN TAIWAN

For necessary expenses to carry out the Taiwan Relations Act,
Public Law 96–8 (93 Stat. 14), $14,490,000.
PAYMENT TO THE FOREIGN SERVICE RETIREMENT AND DISABILITY
FUND

For payment to the Foreign Service Retirement and Disability
Fund, as authorized by law, $126,491,000.

110 STAT. 3009–49
22 USC 269a
note.

PUBLIC LAW 104–208—SEPT. 30, 1996
INTERNATIONAL ORGANIZATIONS

AND

CONFERENCES

CONTRIBUTIONS TO INTERNATIONAL ORGANIZATIONS

For expenses, not otherwise provided for, necessary to meet
annual obligations of membership in international multilateral
organizations, pursuant to treaties ratified pursuant to the advice
and consent of the Senate, conventions or specific Acts of Congress,
$892,000,000: Provided, That any payment of arrearages shall be
directed toward special activities that are mutually agreed upon
by the United States and the respective international organization:
Provided further, That 20 percent of the funds appropriated in
this paragraph for the assessed contribution of the United States
to the United Nations shall be withheld from obligation and
expenditure until a certification is made under section 401(b) of
Public Law 103–236 for fiscal year 1997: Provided further, That
certification under section 401(b) of Public Law 103–236 for fiscal
year 1997 may only be made if the Committees on Appropriations
and Foreign Relations of the Senate and the Committees on Appropriations and International Relations of the House of Representatives are notified of the steps taken, and anticipated, to meet
the requirements of section 401(b) of Public Law 103–236 at least
15 days in advance of the proposed certification: Provided further,
That none of the funds appropriated in this paragraph shall be
available for a United States contribution to an international
organization for the United States share of interest costs made
known to the United States Government by such organization for
loans incurred on or after October 1, 1984, through external borrowings: Provided further, That of the funds appropriated in this paragraph, $100,000,000 may be made available only pursuant to a
certification by the Secretary of State by no later than January
30, 1997, that the United Nations has taken no action during
calendar year 1996 to increase funding for any United Nations
program without identifying an offsetting decrease elsewhere in
the United Nations budget and cause the United Nations to exceed
its no growth budget for the biennium 1996–1997 adopted in December, 1995: Provided further, That if the Secretary of State is unable
to make the aforementioned certification, the $100,000,000 is to
be applied to paying the current year assessment for other international organizations for which the assessment has not been paid
in full or to paying the assessment due in the next fiscal year
for such organizations, subject to the reprogramming procedures
contained in Section 605 of this Act: Provided further, That notwithstanding section 402 of this Act, not to exceed $10,000,000 may
be transferred from the funds made available under this heading
to the ‘‘International Conferences and Contingencies’’ account for
assessed contributions to new or provisional international organizations or for travel expenses of official delegates to international
conferences: Provided further, That any transfer pursuant to this
paragraph shall be treated as a reprogramming of funds under
section 605 of this Act and shall not be available for obligation
or expenditure except in compliance with the procedures set forth
in that section.
CONTRIBUTIONS FOR INTERNATIONAL PEACEKEEPING ACTIVITIES

For necessary expenses to pay assessed and other expenses
of international peacekeeping activities directed to the maintenance

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–50

or restoration of international peace and security $352,400,000,
of which $50,000,000 is for payment of arrearages accumulated
in 1995, and which shall be available only upon certification by
the Secretary of State that at least two of the following have
been achieved: (1) savings of at least $100,000,000 will be achieved
in the biennial expenses of the following United Nations divisions
and activities—the United Nations Conference on Trade and Development, the Regional Economic Commissions, the Department of
Public Information, and the Department of Conference Services,
travel and overtime; (2) the number of professional and general
service staff employed by the United Nations Secretariat at the
conclusion of the 1996–1997 biennium will be at least ten percent
below the number of such positions on January 1, 1996; and (3)
the United Nations has adopted a budget outline for the 1998–
1999 biennium that is below $2,608,000,000; as part of a fiveyear program to achieve major cost-saving reforms in the United
Nations and specialized agencies: Provided, That none of the funds
made available under this Act shall be obligated or expended for
any new or expanded United Nations peacekeeping mission unless,
at least fifteen days in advance of voting for the new or expanded
mission in the United Nations Security Council (or in an emergency,
as far in advance as is practicable), (1) the Committees on Appropriations of the House of Representatives and the Senate and
other appropriate Committees of the Congress are notified of the
estimated cost and length of the mission, the vital national interest
that will be served, and the planned exit strategy; and (2) a reprogramming of funds pursuant to section 605 of this Act is submitted, and the procedures therein followed, setting forth the source
of funds that will be used to pay for the cost of the new or
expanded mission: Provided further, That funds shall be available
for peacekeeping expenses only upon a certification by the Secretary
of State to the appropriate committees of the Congress that American manufacturers and suppliers are being given opportunities
to provide equipment, services, and material for United Nations
peacekeeping activities equal to those being given to foreign manufacturers and suppliers.
INTERNATIONAL COMMISSIONS
For necessary expenses, not otherwise provided for, to meet
obligations of the United States arising under treaties, or specific
Acts of Congress, as follows:
INTERNATIONAL BOUNDARY AND WATER COMMISSION, UNITED STATES
AND MEXICO

For necessary expenses for the United States Section of the
International Boundary and Water Commission, United States and
Mexico, and to comply with laws applicable to the United States
Section, including not to exceed $6,000 for representation; as follows:
SALARIES AND EXPENSES

For salaries and expenses, not otherwise provided for,
$15,490,000.

22 USC 269a
note.

110 STAT. 3009–51

PUBLIC LAW 104–208—SEPT. 30, 1996
CONSTRUCTION

For detailed plan preparation and construction of authorized
projects, $6,463,000, to remain available until expended, as authorized by section 24(c) of the State Department Basic Authorities
Act of 1956 (22 U.S.C. 2696(c)).
AMERICAN SECTIONS, INTERNATIONAL COMMISSIONS

For necessary expenses, not otherwise provided for the International Joint Commission and the International Boundary
Commission, United States and Canada, as authorized by treaties
between the United States and Canada or Great Britain, and for
the Border Environment Cooperation Commission as authorized
by Public Law 103–182; $5,490,000, of which not to exceed $9,000
shall be available for representation expenses incurred by the International Joint Commission.
INTERNATIONAL FISHERIES COMMISSIONS

For necessary expenses for international fisheries commissions,
not otherwise provided for, as authorized by law, $14,549,000: Provided, That the United States’ share of such expenses may be
advanced to the respective commissions, pursuant to 31 U.S.C.
3324.
OTHER
PAYMENT TO THE ASIA FOUNDATION

For a grant to the Asia Foundation, as authorized by section
501 of Public Law 101–246, $8,000,000, to remain available until
expended, as authorized by section 24(c) of the State Department
Basic Authorities Act of 1956 (22 U.S.C. 2696(c)).
RELATED AGENCIES
ARMS CONTROL

AND

DISARMAMENT AGENCY

ARMS CONTROL AND DISARMAMENT ACTIVITIES

For necessary expenses not otherwise provided, for arms control, nonproliferation, and disarmament activities, $41,500,000, of
which not to exceed $50,000 shall be for official reception and
representation expenses as authorized by the Act of September
26, 1961, as amended (22 U.S.C. 2551 et seq.).
UNITED STATES INFORMATION AGENCY
SALARIES AND EXPENSES

For expenses, not otherwise provided for, necessary to enable
the United States Information Agency, as authorized by the Mutual
Educational and Cultural Exchange Act of 1961, as amended (22
U.S.C. 2451 et seq.), the United States Information and Educational
Exchange Act of 1948, as amended (22 U.S.C. 1431 et seq.), and
Reorganization Plan No. 2 of 1977 (91 Stat. 1636), to carry out
international communication, educational and cultural activities;
and to carry out related activities authorized by law, including
employment, without regard to civil service and classification laws,

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–52

of persons on a temporary basis (not to exceed $700,000 of this
appropriation), as authorized by section 801 of such Act of 1948
(22 U.S.C. 1471), and entertainment, including official receptions,
within the United States, not to exceed $25,000 as authorized
by section 804(3) of such Act of 1948 (22 U.S.C. 1474(3));
$440,000,000: Provided, That not to exceed $1,400,000 may be used
for representation abroad as authorized by section 302 of such
Act of 1948 (22 U.S.C. 1452) and section 905 of the Foreign Service
Act of 1980 (22 U.S.C. 4085): Provided further, That not to exceed
$7,615,000, to remain available until expended, may be credited
to this appropriation from fees or other payments received from
or in connection with English teaching, library, motion pictures,
and publication programs as authorized by section 810 of such
Act of 1948 (22 U.S.C. 1475e) and, notwithstanding any other
law, fees from student advising and counseling: Provided further;
That not to exceed $1,100,000 to remain available until expended
may be used to carry out projects involving security construction
and related improvements for agency facilities not physically located
together with Department of State facilities abroad.
For an additional amount for necessary expenses relating to
security, $1,375,000: Provided, That the entire amount is designated
by Congress as an emergency requirement pursuant to section
251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, a amended.
TECHNOLOGY FUND

For expenses necessary to enable the United States Information
Agency to provide for the procurement of information technology
improvements, as authorized by the United States Information and
Educational Exchange Act of 1948, as amended (22 U.S.C. 1431
et seq.), the Mutual Educational and Cultural Exchange Act of
1961, as amended (22 U.S.C. 2451 et seq.), and Reorganization
Plan No. 2 of 1977 (91 Stat. 1636), $5,050,000, to remain available
until expended.
EDUCATIONAL AND CULTURAL EXCHANGE PROGRAMS

For expenses of educational and cultural exchange programs,
as authorized by the Mutual Educational and Cultural Exchange
Act of 1961, as amended (22 U.S.C. 2451 et seq.), and Reorganization Plan No. 2 of 1977 (91 Stat. 1636), $185,000,000, to remain
available until expended as authorized by section 105 of such Act
of 1961 (22 U.S.C. 2455).
EISENHOWER EXCHANGE FELLOWSHIP PROGRAM TRUST FUND

For necessary expenses of Eisenhower Exchange Fellowships,
Incorporated, as authorized by sections 4 and 5 of the Eisenhower
Exchange Fellowship Act of 1990 (20 U.S.C. 5204–5205), all interest
and earnings accruing to the Eisenhower Exchange Fellowship Program Trust Fund on or before September 30, 1997, to remain
available until expended: Provided, That none of the funds appropriated herein shall be used to pay any salary or other compensation, or to enter into any contract providing for the payment thereof,
in excess of the rate authorized by 5 U.S.C. 5376; or for purposes
which are not in accordance with OMB Circulars A–110 (Uniform
Administrative Requirements) and A–122 (Cost Principles for Non-

110 STAT. 3009–53

PUBLIC LAW 104–208—SEPT. 30, 1996

profit Organizations), including the restrictions on compensation
for personal services.
ISRAELI ARAB SCHOLARSHIP PROGRAM

For necessary expenses of the Israeli Arab Scholarship Program
as authorized by section 214 of the Foreign Relations Authorization
Act, Fiscal Years 1992 and 1993 (22 U.S.C. 2452), all interest
and earnings accruing to the Israeli Arab Scholarship Fund on
or before September 30, 1997, to remain available until expended.
INTERNATIONAL BROADCASTING OPERATIONS

For expenses necessary to enable the United States Information
Agency, as authorized by the United States Information and Educational Exchange Act of 1948, as amended, the United States
International Broadcasting Act of 1994, as amended, and Reorganization Plan No. 2 of 1977, to carry out international communication activities; $325,000,000, of which not to exceed $16,000 may
be used for official receptions within the United States as authorized
by section 804(3) of such Act of 1948 (22 U.S.C. 1474(3)), not
to exceed $35,000 may be used for representation abroad as authorized by section 302 of such Act of 1948 (22 U.S.C. 1452) and
section 905 of the Foreign Service Act of 1980 (22 U.S.C. 4085),
and not to exceed $39,000 may be used for official reception and
representation expenses of Radio Free Europe/Radio Liberty; and
in addition, not to exceed $250,000 from fees as authorized by
section 810 of such Act of 1948 (22 U.S.C. 1475e), to remain available until expended for carrying out authorized purposes; and in
addition, notwithstanding any other provision of law, not to exceed
$1,000,000 in monies received (including receipts from advertising,
if any) by or for the use of the United States Information Agency
from or in connection with broadcasting resources owned by or
on behalf of the Agency, to be available until expended for carrying
out authorized purposes.
BROADCASTING TO CUBA

For expenses necessary to enable the United States Information
Agency to carry out the Radio Broadcasting to Cuba Act, as amended, the Television Broadcasting to Cuba Act, and the International
Broadcasting Act of 1994, including the purchase, rent, construction,
and improvement of facilities for radio and television transmission
and reception, and purchase and installation of necessary equipment
for radio and television transmission and reception, $25,000,000,
to remain available until expended.
RADIO CONSTRUCTION

For the purchase, rent, construction, and improvement of facilities for radio transmission and reception, and purchase and installation of necessary equipment for radio and television transmission
and reception as authorized by section 801 of the United States
Information and Educational Exchange Act of 1948 (22 U.S.C. 1471),
$35,490,000, to remain available until expended, as authorized by
section 704(a) of such Act of 1948 (22 U.S.C. 1477b(a)).

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–54

EAST-WEST CENTER

To enable the Director of the United States Information Agency
to provide for carrying out the provisions of the Center for Cultural
and Technical Interchange Between East and West Act of 1960
(22 U.S.C. 2054–2057), by grant to the Center for Cultural and
Technical Interchange Between East and West in the State of
Hawaii, $10,000,000: Provided, That none of the funds appropriated
herein shall be used to pay any salary, or enter into any contract
providing for the payment thereof, in excess of the rate authorized
by 5 U.S.C. 5376.
NORTH/SOUTH CENTER

To enable the Director of the United States Information Agency
to provide for carrying out the provisions of the North/South Center
Act of 1991 (22 U.S.C. 2075), by grant to an educational institution
in Florida known as the North/South Center, $1,495,000, to remain
available until expended.
NATIONAL ENDOWMENT FOR DEMOCRACY

For grants made by the United States Information Agency
to the National Endowment for Democracy as authorized by the
National Endowment for Democracy Act, $30,000,000, to remain
available until expended.
GENERAL PROVISIONS—DEPARTMENT
AGENCIES

OF

STATE

AND

RELATED

SEC. 401. Funds appropriated under this title shall be available,
except as otherwise provided, for allowances and differentials as
authorized by subchapter 59 of 5 U.S.C.; for services as authorized
by 5 U.S.C. 3109; and hire of passenger transportation pursuant
to 31 U.S.C. 1343(b).
SEC. 402. Not to exceed 5 percent of any appropriation made
available for the current fiscal year for the Department of State
in this Act may be transferred between such appropriations, but
no such appropriation, except as otherwise specifically provided,
shall be increased by more than 10 percent by any such transfers:
Provided, That not to exceed 5 percent of any appropriation made
available for the current fiscal year for the United States Information Agency in this Act may be transferred between such appropriations, but no such appropriation, except as otherwise specifically
provided, shall be increased by more than 10 percent by any such
transfers: Provided further, That any transfer pursuant to this
section shall be treated as a reprogramming of funds under section
605 of this Act and shall not be available for obligation or expenditure except in compliance with the procedures set forth in that
section.
SEC. 403. Funds hereafter appropriated or otherwise made
available under this Act or any other Act may be expended for
compensation of the United States Commissioner of the International Boundary Commission, United States and Canada, only
for actual hours worked by such Commissioner.
SEC. 404. Funds appropriated by this Act for the United States
Information Agency, the Arms Control and Disarmament Agency,

22 USC 268c.

110 STAT. 3009–55

PUBLIC LAW 104–208—SEPT. 30, 1996

and the Department of State may be obligated and expended notwithstanding section 701 of the United States Information and
Educational Exchange Act of 1948 and section 313 of the Foreign
Relations Authorization Act, Fiscal Years 1994 and 1995, section
53 of the Arms Control and Disarmament Act, and section 15
of the State Department Basic Authorities Act of 1956.
SEC. 405. Any costs incurred by a Department or agency funded
under this title resulting from personnel actions taken in response
to funding reductions included in this title shall be absorbed within
the total budgetary resources available to such Department or
agency: Provided, That the authority to transfer funds between
appropriations accounts as may be necessary to carry out this
section is provided in addition to authorities included elsewhere
in this Act: Provided further, That use of funds to carry out this
section shall be treated as a reprogramming of funds under section
605 of this Act and shall not be available for obligation or expenditure except in compliance with the procedures set forth in that
section.
SEC. 406. Starting sixty days after enactment of this Act, none
of the funds made available by this Act may be made available
to support the activities of the Standing Consultative Commission
(SCC) unless the President provides to the Congress a report
containing a detailed analysis of whether the Memorandum of
Understanding on Succession and the Agreed Statement regarding
Demarcation agreed to by the Standing Consultative Commission
on June 24, 1996, which was reaffirmed by Secretary of State
Warren Christopher and Minister of Foreign Affairs Evgeny
Primakov on September 23, 1996, represent substantive changes
to the Anti-Ballistic Missile Treaty of 1972 and whether these
agreements will require the advice and consent of the Senate of
the United States.
SEC. 407. Section 1 of the Act of June 4, 1920 (41 Stat. 750;
22 U.S.C. 214) is amended by—
(1) inserting before the period at the end of the first sentence the following: ‘‘; except that the Secretary of State may
by regulation authorize State officials or the United States
Postal Service to collect and retain the execution fee for each
application for a passport accepted by such officials or by that
Service’’; and
(2) striking the second sentence.
This title may be cited as the ‘‘Department of State and Related
Agencies Appropriations Act, 1997’’.
TITLE V—RELATED AGENCIES
DEPARTMENT OF TRANSPORTATION
MARITIME ADMINISTRATION
OPERATING-DIFFERENTIAL SUBSIDIES
(LIQUIDATION OF CONTRACT AUTHORITY)

For the payment of obligations incurred for operating-differential subsidies, as authorized by the Merchant Marine Act, 1936,
as amended, $148,430,000, to remain available until expended.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–56

MARITIME SECURITY PROGRAM

For necessary expenses to maintain and preserve a U.S.-flag
merchant fleet to serve the national security needs of the United
States, $54,000,000, to remain available until expended: Provided,
That these funds will be available only upon enactment of an
authorization for this program.
OPERATIONS AND TRAINING

For necessary expenses of operations and training activities
authorized by law, $65,000,000: Provided, That reimbursements
may be made to this appropriation from receipts to the ‘‘Federal
Ship Financing Fund’’ for administrative expenses in support of
that program in addition to any amount heretofore appropriated.
MARITIME GUARANTEED LOAN (TITLE XI) PROGRAM ACCOUNT

For the cost of guaranteed loans, as authorized by the Merchant
Marine Act, 1936, $37,450,000, to remain available until expended:
Provided, That such costs, including the cost of modifying such
loans, shall be as defined in section 502 of the Congressional Budget
Act of 1974, as amended: Provided further, That these funds are
available to subsidize total loan principal, any part of which is
to be guaranteed, not to exceed $1,000,000,000.
In addition, for administrative expenses to carry out the
guaranteed loan program, not to exceed $3,450,000, which shall
be transferred to and merged with the appropriation for Operations
and Training.
ADMINISTRATIVE PROVISIONS—MARITIME ADMINISTRATION

Notwithstanding any other provision of this Act, the Maritime
Administration is authorized to furnish utilities and services and
make necessary repairs in connection with any lease, contract,
or occupancy involving Government property under control of the
Maritime Administration, and payments received therefor shall be
credited to the appropriation charged with the cost thereof: Provided, That rental payments under any such lease, contract, or
occupancy for items other than such utilities, services, or repairs
shall be covered into the Treasury as miscellaneous receipts.
No obligations shall be incurred during the current fiscal year
from the construction fund established by the Merchant Marine
Act, 1936, or otherwise, in excess of the appropriations and limitations contained in this Act or in any prior appropriation Act, and
all receipts which otherwise would be deposited to the credit of
said fund shall be covered into the Treasury as miscellaneous
receipts.
COMMISSION

FOR THE

PRESERVATION
ABROAD

OF

AMERICA’S HERITAGE

SALARIES AND EXPENSES

For expenses for the Commission for the Preservation of America’s Heritage Abroad, $206,000, as authorized by Public Law 99–
83, section 1303.

110 STAT. 3009–57

PUBLIC LAW 104–208—SEPT. 30, 1996
COMMISSION

ON

CIVIL RIGHTS

SALARIES AND EXPENSES

For necessary expenses of the Commission on Civil Rights,
including hire of passenger motor vehicles, $8,740,000: Provided,
That not to exceed $50,000 may be used to employ consultants:
Provided further, That none of the funds appropriated in this paragraph shall be used to employ in excess of four full-time individuals
under Schedule C of the Excepted Service exclusive of one special
assistant for each Commissioner: Provided further, That none of
the funds appropriated in this paragraph shall be used to reimburse
Commissioners for more than 75 billable days, with the exception
of the Chairperson who is permitted 125 billable days.
COMMISSION

ON IMMIGRATION

REFORM

SALARIES AND EXPENSES

For necessary expenses of the Commission on Immigration
Reform pursuant to section 141(f) of the Immigration Act of 1990,
$2,196,000, to remain available until expended.
COMMISSION

ON

SECURITY

AND

COOPERATION

IN

EUROPE

SALARIES AND EXPENSES

For necessary expenses of the Commission on Security and
Cooperation in Europe, as authorized by Public Law 94–304,
$1,090,000, to remain available until expended as authorized by
section 3 of Public Law 99–7.
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
SALARIES AND EXPENSES

For necessary expenses of the Equal Employment Opportunity
Commission as authorized by title VII of the Civil Rights Act
of 1964, as amended (29 U.S.C. 206(d) and 621–634), the Americans
with Disabilities Act of 1990, and the Civil Rights Act of 1991,
including services as authorized by 5 U.S.C. 3109; hire of passenger
motor vehicles as authorized by 31 U.S.C. 1343(b); non-monetary
awards to private citizens; not to exceed $27,500,000, for payments
to State and local enforcement agencies for services to the Commission pursuant to title VII of the Civil Rights Act of 1964, as
amended, sections 6 and 14 of the Age Discrimination in Employment Act, the Americans with Disabilities Act of 1990, and the
Civil Rights Act of 1991; $239,740,000: Provided, That the Commission is authorized to make available for official reception and representation expenses not to exceed $2,500 from available funds.
FEDERAL COMMUNICATIONS COMMISSION
SALARIES AND EXPENSES

For necessary expenses of the Federal Communications
Commission, as authorized by law, including uniforms and allowances therefor, as authorized by 5 U.S.C. 5901–02; not to exceed
$600,000 for land and structure; not to exceed $500,000 for improvement and care of grounds and repair to buildings; not to exceed

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–58

$4,000 for official reception and representation expenses; purchase
(not to exceed sixteen) and hire of motor vehicles; special counsel
fees; and services as authorized by 5 U.S.C. 3109; $189,079,000,
of which not to exceed $300,000 shall remain available until September 30, 1998, for research and policy studies: Provided, That
$152,523,000 of offsetting collections shall be assessed and collected
pursuant to section 9 of title I of the Communications Act of
1934, as amended, and shall be retained and used for necessary
expenses in this appropriation, and shall remain available until
expended: Provided further, That the sum herein appropriated shall
be reduced as such offsetting collections are received during fiscal
year 1997 so as to result in a final fiscal year 1997 appropriation
estimated at $36,556,000: Provided further, That any offsetting
collections received in excess of $152,523,000 in fiscal year 1997
shall remain available until expended, but shall not be available
for obligation until October 1, 1997.
FEDERAL MARITIME COMMISSION
SALARIES AND EXPENSES

For necessary expenses of the Federal Maritime Commission
as authorized by section 201(d) of the Merchant Marine Act of
1936, as amended (46 App. U.S.C. 1111), including services as
authorized by 5 U.S.C. 3109; hire of passenger motor vehicles
as authorized by 31 U.S.C. 1343(b); and uniforms or allowances
therefor, as authorized by 5 U.S.C. 5901–02; $14,000,000: Provided,
That not to exceed $2,000 shall be available for official reception
and representation expenses.
FEDERAL TRADE COMMISSION
SALARIES AND EXPENSES

For necessary expenses of the Federal Trade Commission,
including uniforms or allowances therefor, as authorized by 5 U.S.C.
5901–5902; services as authorized by 5 U.S.C. 3109; hire of passenger motor vehicles; and not to exceed $2,000 for official reception
and representation expenses; $85,930,000:Provided, That not to
exceed $300,000 shall be available for use to contract with a person
or persons for collection services in accordance with the terms
of 31 U.S.C. 3718, as amended: Provided further, That notwithstanding any other provision of law, not to exceed $58,905,000 of offsetting collections derived from fees collected for premerger notification
filings under the Hart-Scott-Rodino Antitrust Improvements Act
of 1976 (15 U.S.C. 18(a)) shall be retained and used for necessary
expenses in this appropriation, and shall remain available until
expended: Provided further, That the sum herein appropriated from
the General Fund shall be reduced as such offsetting collections
are received during fiscal year 1997, so as to result in a final
fiscal year 1997 appropriation from the General Fund estimated
at not more than $27,025,000, to remain available until expended:
Provided further, That any fees received in excess of $58,905,000
in fiscal year 1997 shall remain available until expended, but shall
not be available for obligation until October 1, 1997: Provided
further, That none of the funds made available to the Federal
Trade Commission shall be available for obligation for expenses

110 STAT. 3009–59

PUBLIC LAW 104–208—SEPT. 30, 1996

authorized by section 151 of the Federal Deposit Insurance Corporation Improvement Act of 1991 (Public Law 102–242, 105 Stat.
2282–2285).
GAMBLING IMPACT STUDY COMMISSION
SALARIES AND EXPENSES

For necessary expenses of the National Gambling Impact Study
Commission, $4,000,000 to remain available until expended: Provided, That these funds will be available only upon enactment
of an authorization for this Commission.
LEGAL SERVICES CORPORATION
PAYMENT TO THE LEGAL SERVICES CORPORATION

For payment to the Legal Services Corporation to carry out
the purposes of the Legal Services Corporation Act of 1974, as
amended, $283,000,000, of which $274,400,000 is for basic field
programs and required independent audits; $1,500,000 is for the
Office of Inspector General, of which such amounts as may be
necessary may be used to conduct additional audits of recipients;
and $7,100,000 is for management and administration.
ADMINISTRATIVE PROVISIONS—LEGAL SERVICES CORPORATION

SEC. 501. (a) CONTINUATION OF COMPETITIVE SELECTION
ESS.—None of the funds appropriated in this Act to the

PROCLegal
Services Corporation may be used to provide financial assistance
to any person or entity except through a competitive selection
process conducted in accordance with regulations promulgated by
the Corporation in accordance with the criteria set forth in subsections (c), (d), and (e) of section 503 of Public Law 104–134
(110 Stat. 1321–52 et seq.).
(b) INAPPLICABILITY OF NONCOMPETITIVE PROCEDURES.—For
purposes of the funding provided in this Act, rights under sections
1007(a)(9) and 1011 of the Legal Services Corporation Act (42
U.S.C. 2996f(a)(9) and 42 U.S.C. 2996j) shall not apply.
SEC. 502. (a) CONTINUATION OF REQUIREMENTS AND RESTRICTIONS.—None of the funds appropriated in this Act to the Legal
Services Corporation shall be expended for any purpose prohibited
or limited by, or contrary to any of the provisions of—
(1) sections 501, 502, 505, 506, and 507 of Public Law
104–134 (110 Stat. 1321–51 et seq.), and all funds appropriated
in this Act to the Legal Services Corporation shall be subject
to the same terms and conditions as set forth in such sections,
except that all references in such sections to 1995 and 1996
shall be deemed to refer instead to 1996 and 1997, respectively;
and
(2) section 504 of Public Law 104–134 (110 Stat. 1321–
53 et seq.), and all funds appropriated in this Act to the
Legal Services Corporation shall be subject to the same terms
and conditions set forth in such section, except that—
(A) subsection (c) of such section 504 shall not apply;
(B) paragraph (3) of section 508(b) of Public Law 104–
134 (110 Stat. 1321–58) shall apply with respect to the
requirements of subsection (a)(13) of such section 504,
except that all references in such section 508(b) to the

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–60

date of enactment shall be deemed to refer to April 26,
1996; and
(C) subsection (a)(11) of such section 504 shall not
be construed to prohibit a recipient from using funds
derived from a source other than the Corporation to provide
related legal assistance to—
(i) an alien who has been battered or subjected
to extreme cruelty in the United States by a spouse
or a parent, or by a member of the spouse’s or parent’s
family residing in the same household as the alien
and the spouse or parent consented or acquiesced to
such battery or cruelty; or
(ii) an alien whose child has been battered or subjected to extreme cruelty in the United States by a
spouse or parent of the alien (without the active participation of the alien in the battery or extreme cruelty),
or by a member of the spouse’s or parent’s family
residing in the same household as the alien and the
spouse or parent consented or acquiesced to such battery or cruelty, and the alien did not actively participate in such battery or cruelty.
(b) DEFINITIONS.—For purposes of subsection (a)(2)(C):
(1) The term ‘‘battered or subjected to extreme cruelty’’
has the meaning given such term under regulations issued
pursuant to subtitle G of the Violence Against Women Act
of 1994 (Pub. L. 103–322; 108 Stat. 1953).
(2) The term ‘‘related legal assistance’’ means legal assistance directly related to the prevention of, or obtaining of relief
from, the battery or cruelty described in such subsection.
SEC. 503. (a) CONTINUATION OF AUDIT REQUIREMENTS.—The
requirements of section 509 of Public Law 104–134 (110 Stat. 1321–
58 et seq.), other than subsection (l) of such section, shall apply
during fiscal year 1997.
(b) REQUIREMENT OF ANNUAL AUDIT.—An annual audit of each
person or entity receiving financial assistance from the Legal Services Corporation under this Act shall be conducted during fiscal
year 1997 in accordance with the requirements referred to in subsection (a).
MARINE MAMMAL COMMISSION
SALARIES AND EXPENSES

For necessary expenses of the Marine Mammal Commission
as authorized by title II of Public Law 92–522, as amended,
$1,189,000.
NATIONAL BANKRUPTCY REVIEW COMMISSION
SALARIES AND EXPENSES

For necessary expenses of the National Bankruptcy Review
Commission, as authorized by the Bankruptcy Reform Act of 1994,
$494,000.

110 STAT. 3009–61

PUBLIC LAW 104–208—SEPT. 30, 1996
OUNCE

OF

PREVENTION COUNCIL

For activities authorized by sections 30101 and 30102 of Public
Law 103–322 (including administrative costs), $1,500,000, to remain
available until expended, for the Ounce of Prevention Grant Program: Provided, That the Council may accept and use gifts and
donations, both real and personal, for the purpose of aiding or
facilitating the authorized activities of the Council, of which not
to exceed $5,000 may be used for official reception and representation expenses.
SECURITIES

AND

EXCHANGE COMMISSION

SALARIES AND EXPENSES

15 USC 77f note.

15 USC 78ee
note.

For necessary expenses for the Securities and Exchange
Commission, including services as authorized by 5 U.S.C. 3109,
the rental of space (to include multiple year leases) in the District
of Columbia and elsewhere, and not to exceed $3,000 for official
reception and representation expenses, $260,400,000, of which not
to exceed $10,000 may be used toward funding a permanent secretariat for the International Organization of Securities Commissions, and of which not to exceed $100,000 shall be available for
expenses for consultations and meetings hosted by the Commission
with foreign governmental and other regulatory officials, members
of their delegations, appropriate representatives and staff to
exchange views concerning developments relating to securities matters, development and implementation of cooperation agreements
concerning securities matters and provision of technical assistance
for the development of foreign securities markets, such expenses
to include necessary logistic and administrative expenses and the
expenses of Commission staff and foreign invitees in attendance
at such consultations and meetings including (1) such incidental
expenses as meals taken in the course of such attendance, (2)
any travel and transportation to or from such meetings, and (3)
any other related lodging or subsistance: Provided, That immediately upon enactment of this Act, the rate of fees under section
6(b) of the Securities Act of 1933 (15 U.S.C. 77f(b)) shall increase
from one-fiftieth of one percentum to one-thirty-third of one
percentum, and such increase shall be deposited as an offsetting
collection to this appropriation, to remain available until expended,
to recover costs of services of the securities registration process:
Provided further, That effective January 1, 1997, every national
securities association shall pay to the Commission a fee at a rate
of one-three-hundredth of one percentum of the aggregate dollar
amount of sales transacted by or through any member of such
association otherwise than on a national securities exchange (other
than bonds, debentures, and other evidences of indebtedness) subject to prompt last sale reporting pursuant to the rules of the
Commission or a registered national securities association, excluding any sales for which a fee is paid under section 31 of the
Securities Exchange Act of 1934 (15 U.S.C. 78ee), and such increase
shall be deposited as an offsetting collection to this appropriation,
to remain available until expended, to recover the costs to the
Government of the supervision and regulation of securities markets
and securities professionals: Provided further, That the fee due
from every national securities association shall be paid on or before
September 30, 1997, with respect to transactions and sales occurring

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–62

during the period beginning on January 1, 1997, and ending at
the close of August 31, 1997: Provided further, That the total
amount appropriated for fiscal year 1997 under this heading shall
be reduced as all such offsetting fees are deposited to this appropriation so as to result in a final total fiscal year 1997 appropriation
from the General Fund estimated at not more than $37,778,000:
Provided further, That any such fees collected in excess of
$222,622,000 shall remain available until expended but shall not
be available for obligation until October 1, 1997.
SMALL BUSINESS ADMINISTRATION
SALARIES AND EXPENSES

For necessary expenses, not otherwise provided for, of the Small
Business Administration as authorized by Public Law 103–403,
including hire of passenger motor vehicles as authorized by 31
U.S.C. 1343 and 1344, and not to exceed $3,500 for official reception
and representation expenses, $223,547,000, of which $1,000,000
shall only be available for obligation and expenditure for projects
jointly developed, implemented and administered with the Minority
Business Development Agency of the Department of Commerce:
Provided, That the Administrator is authorized to charge fees to
cover the cost of publications developed by the Small Business
Administration, and certain loan servicing activities: Provided further, That notwithstanding 31 U.S.C. 3302, revenues received from
all such activities shall be credited to this account, to be available
for carrying out these purposes without further appropriations:
Provided further, That $75,500,000 shall be available to fund grants
for performance in fiscal year 1997 or fiscal year 1998 as authorized
by section 21 of the Small Business Act, as amended. In addition,
for expenses not otherwise provided for, of the Small Business
Administration, $11,500,000, of which: $3,000,000 shall be available
for a grant to continue the WVHTC Foundation outreach program
to assist small business development; $7,000,000 shall be available
for a grant to the Center for Rural Development in Somerset,
Kentucky, for small business and rural technology development
assistance; $1,000,000 shall be available for a grant to Indiana
State University for the renovation and equipping of a training
facility, to assist in creating small business and economic development opportunities; and $500,000 shall be available for a continuation grant to the Center for Entrepreneurial Opportunity in
Greensburg, Pennsylvania, to provide for small business consulting
and assistance.
OFFICE OF INSPECTOR GENERAL

For necessary expenses of the Office of Inspector General in
carrying out the provisions of the Inspector General Act of 1978,
as amended (5 U.S.C. App. 1–11, as amended by Public Law 100–
504), $9,000,000.
BUSINESS LOANS PROGRAM ACCOUNT

For the cost of direct loans, $1,691,000, and for the cost of
guaranteed loans, $182,017,000, as authorized by 15 U.S.C. 631
note, of which $2,317,000, to be available until expended, shall
be for the Microloan Guarantee Program, and of which $40,510,000

110 STAT. 3009–63

PUBLIC LAW 104–208—SEPT. 30, 1996

shall remain available until September 30, 1998: Provided, That
such costs, including the cost of modifying such loans, shall be
as defined in section 502 of the Congressional Budget Act of 1974:
Provided further, That during fiscal year 1997, commitments to
guarantee loans under section 503 of the Small Business Investment
Act of 1958, as amended, shall not exceed the amount of financings
authorized under section 20(n)(2)(B) of the Small Business Act,
as amended.
In addition, for administrative expenses to carry out the direct
and guaranteed loan programs, $94,000,000, which may be transferred to and merged with the appropriations for Salaries and
Expenses.
DISASTER LOANS PROGRAM ACCOUNT

For the cost of direct loans authorized by section 7(b) of the
Small Business Act, as amended, $105,432,000, to remain available
until expended: Provided, That such costs, including the cost of
modifying such loans, shall be as defined in section 502 of the
Congressional Budget Act of 1974.
In addition, for administrative expenses to carry out the direct
loan program, $86,500,000, including not to exceed $500,000 for
the Office of Inspector General of the Small Business Administration for audits and reviews of disaster loans and the disaster loan
program, and said sums may be transferred to and merged with
appropriations for Salaries and Expenses and Office of Inspector
General.
SURETY BOND GUARANTEES REVOLVING FUND

For additional capital for the ‘‘Surety Bond Guarantees Revolving Fund’’, authorized by the Small Business Investment Act, as
amended, $3,730,000, to remain available without fiscal year limitation as authorized by 15 U.S.C. 631 note.
ADMINISTRATIVE PROVISION—SMALL BUSINESS ADMINISTRATION

SEC. 504. Not to exceed 5 percent of any appropriation made
available for the current fiscal year for the Small Business Administration in this Act may be transferred between such appropriations,
but no such appropriation shall be increased by more than 10
percent by any such transfers: Provided, That any transfer pursuant
to this section shall be treated as a reprogramming of funds under
section 605 of this Act and shall not be available for obligation
or expenditure except in compliance with the procedures set forth
in that section.
STATE JUSTICE INSTITUTE
SALARIES AND EXPENSES

For necessary expenses of the State Justice Institute, as authorized by the State Justice Institute Authorization Act of 1992 (Public
Law 102–572 (106 Stat. 4515–4516)), $6,000,000, to remain available until expended: Provided, That not to exceed $2,500 shall
be available for official reception and representation expenses.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–64

TITLE VI—GENERAL PROVISIONS
SEC. 601. No part of any appropriation contained in this Act
shall be used for publicity or propaganda purposes not authorized
by the Congress.
SEC. 602. 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. 603. The expenditure of any appropriation under this
Act for any consulting service through procurement contract, pursuant to 5 U.S.C. 3109, shall be limited to those contracts where
such expenditures are a matter of public record and available
for public inspection, except where otherwise provided under existing law, or under existing Executive order issued pursuant to existing law.
SEC. 604. If any provision of this Act or the application of
such provision to any person or circumstances shall be held invalid,
the remainder of the Act and the application of each provision
to persons or circumstances other than those as to which it is
held invalid shall not be affected thereby.
SEC. 605. (a) None of the funds provided under this Act, or
provided under previous appropriations Acts to the agencies funded
by this Act that remain available for obligation or expenditure
in fiscal year 1997, or provided from any accounts in the Treasury
of the United States derived by the collection of fees available
to the agencies funded by this Act, shall be available for obligation
or expenditure through a reprogramming of funds which (1) creates
new programs; (2) eliminates a program, project, or activity; (3)
increases funds or personnel by any means for any project or
activity for which funds have been denied or restricted; (4) relocates
an office or employees; (5) reorganizes offices, programs, or activities; or (6) contracts out or privatizes any functions, or activities
presently performed by Federal employees; unless the Appropriations Committees of both Houses of Congress are notified fifteen
days in advance of such reprogramming of funds.
(b) None of the funds provided under this Act, or provided
under previous appropriations Acts to the agencies funded by this
Act that remain available for obligation or expenditure in fiscal
year 1997, or provided from any accounts in the Treasury of the
United States derived by the collection of fees available to the
agencies funded by this Act, shall be available for obligation or
expenditure for activities, programs, or projects through a reprogramming of funds in excess of $500,000 or 10 percent, whichever is less, that (1) augments existing programs, projects, or activities; (2) reduces by 10 percent funding for any existing program,
project, or activity, or numbers of personnel by 10 percent as
approved by Congress; or (3) results from any general savings
from a reduction in personnel which would result in a change
in existing programs, activities, or projects as approved by Congress;
unless the Appropriations Committees of both Houses of Congress
are notified fifteen days in advance of such reprogramming of
funds.
SEC. 606. None of the funds made available in this Act may
be used for the construction, repair (other than emergency repair),
overhaul, conversion, or modernization of vessels for the National
Oceanic and Atmospheric Administration in shipyards located outside of the United States.

110 STAT. 3009–65

PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 607. (a) PURCHASE OF AMERICAN-MADE EQUIPMENT AND
PRODUCTS.—It is the sense of the Congress that, to the greatest
extent practicable, all equipment and products purchased with
funds made available in this Act should be American-made.
(b) NOTICE REQUIREMENT.—In providing financial assistance
to, or entering into any contract with, any entity using funds
made available in this Act, the head of each Federal agency, to
the greatest extent practicable, shall provide to such entity a notice
describing the statement made in subsection (a) by the Congress.
(c) PROHIBITION OF CONTRACTS WITH PERSONS FALSELY LABELING PRODUCTS AS MADE IN AMERICA.—If it has been finally determined by a court or Federal agency that any person intentionally
affixed a label bearing a ‘‘Made in America’’ inscription, or any
inscription with the same meaning, to any product sold in or shipped
to the United States that is not made in the United States, the
person shall be ineligible to receive any contract or subcontract
made with funds made available in this Act, pursuant to the debarment, suspension, and ineligibility procedures described in sections
9.400 through 9.409 of title 48, Code of Federal Regulations.
SEC. 608. None of the funds made available in this Act may
be used to implement, administer, or enforce any guidelines of
the Equal Employment Opportunity Commission covering harassment based on religion, when it is made known to the Federal
entity or official to which such funds are made available that
such guidelines do not differ in any respect from the proposed
guidelines published by the Commission on October 1, 1993 (58
Fed. Reg. 51266).
SEC. 609. None of the funds appropriated or otherwise made
available by this Act may be obligated or expended to pay for
any cost incurred for (1) opening or operating any United States
diplomatic or consular post in the Socialist Republic of Vietnam
that was not operating on July 11, 1995; (2) expanding any United
States diplomatic or consular post in the Socialist Republic of Vietnam that was operating on July 11, 1995; or (3) increasing the
total number of personnel assigned to United States diplomatic
or consular posts in the Socialist Republic of Vietnam above the
levels existing on July 11, 1995, unless the President certifies
within 60 days, based upon all information available to the United
States Government that the Government of the Socialist Republic
of Vietnam is cooperating in full faith with the United States
in the following four areas:
(1) Resolving discrepancy cases, live sightings and field
activities,
(2) Recovering and repatriating American remains,
(3) Accelerating efforts to provide documents that will help
lead to fullest possible accounting of POW/MIA’s.
(4) Providing further assistance in implementing trilateral
investigations with Laos.
SEC. 610. None of the funds made available by this Act may
be used for any United Nations undertaking when it is made
known to the Federal official having authority to obligate or expend
such funds (1) that the United Nations undertaking is a peacekeeping mission, (2) that such undertaking will involve United States
Armed Forces under the command or operational control of a foreign
national, and (3) that the President’s military advisors have not
submitted to the President a recommendation that such involvement
is in the national security interests of the United States and the

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–66

President has not submitted to the Congress such a recommendation.
SEC. 611. None of the funds made available in this Act shall
be used to provide the following amenities or personal comforts
in the Federal prison system—
(1) in-cell television viewing except for prisoners who are
segregated from the general prison population for their own
safety;
(2) the viewing of R, X, and NC–17 rated movies, through
whatever medium presented;
(3) any instruction (live or through broadcasts) or training
equipment for boxing, wrestling, judo, karate, or other martial
art, or any bodybuilding or weightlifting equipment of any
sort;
(4) possession of in-cell coffee pots, hot plates, or heating
elements; or
(5) the use or possession of any electric or electronic musical
instrument.
SEC. 612. None of the funds made available in title II for
the National Oceanic and Atmospheric Administration (NOAA)
under the heading ‘‘Fleet Modernization, Shipbuilding and Conversion’’ may be used to implement sections 603, 604, and 605 of
Public Law 102–567: Provided, That NOAA may develop a modernization plan for its fisheries research vessels that takes fully
into account opportunities for contracting for fisheries surveys.
SEC. 613. Any costs incurred by a Department or agency funded
under this Act resulting from personnel actions taken in response
to funding reductions included in this Act shall be absorbed within
the total budgetary resources available to such Department or
agency: Provided, That the authority to transfer funds between
appropriations accounts as may be necessary to carry out this
section is provided in addition to authorities included elsewhere
in this Act: Provided further, That use of funds to carry out this
section shall be treated as a reprogramming of funds under section
605 of this Act and shall not be available for obligation or expenditure except in compliance with the procedures set forth in that
section.
SEC. 614. None of the funds made available in this Act to
the Federal Bureau of Prisons may be used to distribute or make
available any commercially published information or material to
a prisoner when it is made known to the Federal official having
authority to obligate or expend such funds that such information
or material is sexually explicit or features nudity.
SEC. 615. Of the funds appropriated in this Act under the
heading ‘‘OFFICE OF JUSTICE PROGRAMS—STATE AND LOCAL
LAW ENFORCEMENT ASSISTANCE’’ and ‘‘Community Oriented Policing
Services Program’’, not more than ninety percent of the amount
to be awarded to an entity under the Local Law Enforcement
Block Grant and part Q of title I of the Omnibus Crime Control
and Safe Streets Act of 1968 shall be made available to such
an entity when it is made known to the Federal official having
authority to obligate or expend such funds that the entity that
employs a public safety officer (as such term is defined in section
1204 of title I of the Omnibus Crime Control and Safe Streets
Act of 1968) does not provide such a public safety officer who
retires or is separated from service due to injury suffered as the
direct and proximate result of a personal injury sustained in the

110 STAT. 3009–67

PUBLIC LAW 104–208—SEPT. 30, 1996

line of duty while responding to an emergency situation or a hot
pursuit (as such terms are defined by State law) with the same
or better level of health insurance benefits that are paid by the
entity at the time of retirement or separation.
SEC. 616. LIMITATION ON PATENT INFRINGEMENTS RELATING TO A
MEDICAL PRACTITIONER’S PERFORMANCE OF A MEDICAL ACTIVITY.

Section 287 of title 35, United States Code, is amended by
adding at the end the following new subsection:
(c)(1) With respect to a medical practitioner’s performance of
a medical activity that constitutes an infringement under section
271 (a) or (b) of this title, the provisions of sections 281, 283,
284, and 285 of this title shall not apply against the medical
practitioner or against a related health care entity with respect
to such medical activity.
(2) For the purposes of this subsection:
(A) the term ‘‘medical activity’’ means the performance
of a medical or surgical procedure on a body, but shall not
include (i) the use of a patented machine, manufacture, or
composition of matter in violation of such patent, (ii) the practice of a patented use of a composition of matter in violation
of such patent, or (iii) the practice of a process in violation
of a biotechnology patent.
(B) the term ‘‘medical practitioner’’ means any natural
person who is licensed by a State to provide the medical activity
described in subsection (c)(1) or who is acting under the direction of such person in the performance of the medical activity.
(C) the term ‘‘related health care entity’’ shall mean an
entity with which a medical practitioner has a professional
affiliation under which the medical practitioner performs the
medical activity, including but not limited to a nursing home,
hospital, university, medical school, health maintenance
organization, group medical practice, or a medical clinic.
(D) the term ‘‘professional affiliation’’ shall mean staff privileges, medical staff membership, employment or contractual
relationship, partnership or ownership interest, academic
appointment, or other affiliation under which a medical practitioner provides the medical activity on behalf of, or in association with, the health care entity.
(E) the term ‘‘body’’ shall mean a human body, organ or
cadaver, or a nonhuman animal used in medical research or
instruction directly relating to the treatment of humans.
(F) the term ‘‘patented use of a composition of matter’’
does not include a claim for a method of performing a medical
or surgical procedure on a body that recites the use of a composition of matter where the use of that composition of matter
does not directly contribute to achievement of the objective
of the claimed method.
(G) the term ‘‘State’’ shall mean any state or territory
of the United States, the District of Columbia, and the Commonwealth of Puerto Rico.
(3) This subsection does not apply to the activities of any
person, or employee or agent of such person (regardless of whether
such person is a tax exempt organization under section 501(c)
of the Internal Revenue Code), who is engaged in the commercial
development, manufacture, sale, importation, or distribution of a

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–68

machine, manufacture, or composition of matter or the provision
of pharmacy or clinical laboratory services (other than clinical laboratory services provided in a physician’s office), where such activities are:
(A) directly related to the commercial development, manufacture, sale, importation, or distribution of a machine, manufacture, or composition of matter or the provision of pharmacy
or clinical laboratory services (other than clinical laboratory
services provided in a physician’s office), and
(B) regulated under the Federal Food, Drug, and Cosmetic
Act, the Public Health Service Act, or the Clinical Laboratories
Improvement Act.
(4) This subsection shall not apply to any patent issued before
the date of enactment of this subsection.
SEC. 617. Effective with the enactment of this Act and in
any fiscal year hereafter, section 8 of Public Law 96–132 is hereby
repealed.
SEC. 618. (a) IN GENERAL.—The Secretary may issue a guarantee or a commitment to guarantee obligations under title XI of
the Merchant Marine Act, 1936 (46 App. U.S.C. 1271 et seq.),
upon such terms as the Secretary may prescribe, to assist in the
reactivation and modernization of any shipyard in the United States
that is closed on the date of the enactment of this Act, if the
Secretary finds that—
(1) the closed shipyard historically built military vessels
and responsible entities now seek to reopen it as an internationally competitive commercial shipyard;
(2)(A) the closed shipyard has been designated by the President as a public-private partnership project; or
(B) has a reuse plan approved by the Navy in which
commercial shipbuilding and repair are primary activities and
has a revolving economic conversion fund approved by the
Department of Defense; and
(3) the State in which the shipyard is located, and each
other involved State, or a State-chartered agency, is making
a significant financial investment in the overall cost of reactivation and modernization as its contribution to the reactivation
and modernization project, in addition to the funds required
by subsection (d)(2) of this section.
(b) WAIVERS.—Notwithstanding any other provision of title XI
of the Merchant Marine Act, 1936 (46 App. U.S.C. 1271 et seq.),
the Secretary shall not apply the requirements of section 1104A(d)
of that Act when issuing a guarantee or a commitment to guarantee
an obligation under this section.
(c) CONDITIONS.—The Secretary shall impose such conditions
on the issuance of a guarantee or a commitment to guarantee
under this section as are necessary to protect the interests of
the United States from the risk of a default. The Secretary shall
consider the interdependency of such shipyard modernization and
reactivation projects and related vessel loan guarantee requests
pending under title XI of the Merchant Marine Act, 1936 (46 App.
U.S.C. 1271 et seq.) before issuing a guarantee or a commitment
to guarantee under this section.
(d) FUNDING PROVISIONS.—
(1) The Secretary may not guarantee or commit to guarantee obligations under this section that exceed $50,000,000 in
the aggregate.

46 USC app.
1273 note.

110 STAT. 3009–69

PUBLIC LAW 104–208—SEPT. 30, 1996

(2) The amount of appropriated funds required by the Federal Credit Reform Act of 1990 (2 U.S.C. 661a et seq.) in
advance of the Secretary’s issuance of a guarantee or a commitment to guarantee under this section shall be provided by
the State in which the shipyard is located, and other involved
States, or by a State-chartered agency, and deposited by the
Secretary in the financing account established under the Federal Credit Reform Act of 1990 (2 U.S.C. 661a et seq.) for
loan guarantees issued by the Secretary under title XI of the
Merchant Marine Act of 1936 (46 App. U.S.C. 1271 et seq.).
No federally appropriated funds shall be available for this
purpose. The funds deposited into that financing account shall
be held and applied by the Secretary in accordance with the
provisions of the Federal Credit Reform Act of 1990 (2 U.S.C.
661a et seq.), except that, unless the Secretary shall have
earlier paid an obligee or been required to pay an obligee
pursuant to the terms of a loan guarantee, the funds deposited
in that financing account shall be returned, upon the expiration
of the Secretary’s loan guarantee, to the State, States, or Statechartered agency which originally provided the funds to the
Secretary.
(3) Notwithstanding the provisions of any other law or
regulation, the cost (as that term is defined by the Federal
Credit Reform Act of 1990 (2 U.S.C. 661a et seq.)) of a guarantee
or commitment to guarantee issued under this section—
(A) may only be determined with reference to the merits of the specific closed shipyard reactivation project which
is the subject of that guarantee or commitment to guarantee, without reference to any other project, type of project,
or averaged risk; and
(B) may not be used in determining the cost of any
other project, type of project, or averaged risk applicable
to guarantees or commitments to guarantee issued under
title XI of the Merchant Marine Act, 1936 (46 App. U.S.C.
1271 et seq.).
(e) SUNSET.—No commitment to guarantee obligations under
this section shall be issued by the Secretary after one year after
the date of enactment of this section.
(f) DEFINITION.—As used in this section, the term ‘‘Secretary’’
means the Secretary of Transportation.
TITLE VII—RESCISSIONS
DEPARTMENT OF JUSTICE
GENERAL ADMINISTRATION
WORKING CAPITAL FUND
(RESCISSION)

Of the unobligated balances available under this heading on
October 31, 1996, $30,000,000 are rescinded.

PUBLIC LAW 104–208—SEPT. 30, 1996
IMMIGRATION

AND

110 STAT. 3009–70

NATURALIZATION SERVICE

IMMIGRATION EMERGENCY FUND
(RESCISSION)

Of the unobligated balances available under this heading
$34,779,000 are rescinded.
TITLE VIII—FISCAL YEAR 1996 SUPPLEMENTAL AND
RESCISSION
DEPARTMENT OF JUSTICE
FEDERAL PRISON SYSTEM
SALARIES AND EXPENSES

In addition to funds made available under this heading,
$40,000,000, which shall remain available until September 30, 1997:
Provided, That these funds shall be available upon enactment of
this Act: Provided further, That these funds shall only be available
if enacted by September 30, 1996.
(RESCISSION)

Of the unobligated balances made available under this heading
until September 30, 1996, $40,000,000 are rescinded: Provided,
That these funds shall only be available for rescission if enacted
by September 30, 1996.
TITLE IX—SUPPLEMENTAL APPROPRIATIONS
DEPARTMENT OF COMMERCE
ECONOMIC DEVELOPMENT ADMINISTRATION
ECONOMIC DEVELOPMENT ASSISTANCE PROGRAMS

For an additional amount for ‘‘Economic Development Assistance Programs’’ for emergency infrastructure expenses resulting
from Hurricane Fran and Hurricane Hortense and other natural
disasters, $25,000,000, to remain available until expended: Provided, That the entire amount is designated by Congress as an
emergency requirement pursuant to section 251(b)(2)(D)(i) of the
Balanced Budget and Emergency Deficit Control Act of 1985, as
amended.
RELATED AGENCY
SMALL BUSINESS ADMINISTRATION
DISASTER LOANS PROGRAM ACCOUNT

For an additional amount for ‘‘Disaster Loans Program Account’’
for emergency expenses resulting from Hurricanes Fran and
Hortense and other disasters, $113,000,000 for the cost of direct
loans, to remain available until expended: Provided, That such
costs, including the cost of modifying such loans, shall be as defined
in section 502 of the Congressional Budget Act of 1974; and for

110 STAT. 3009–71

PUBLIC LAW 104–208—SEPT. 30, 1996

administrative expenses to carry out the disaster loan program,
$22,000,000, to remain available until expended, which may be
transferred to and merged with ‘‘Salaries and Expenses’’: Provided
further, That both amounts are hereby designated by Congress
as emergency requirements pursuant to section 251(b)(2)(D)(i) of
the Balanced Budget and Emergency Deficit Control Act of 1985,
as amended.
This Act may be cited as the ‘‘Departments of Commerce,
Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1997’’.
(b) For programs, projects or activities in the Department of
Defense Appropriations Act, 1997, provided as follows, to be effective
as if it had been enacted into law as the regular appropriations
Act:
AN ACT
Making appropriations for the Department of Defense for the fiscal year ending
September 30, 1997, and for other purposes
Department of
Defense
Appropriations
Act, 1997.
Post, p. 3009–
119.

TITLE I
MILITARY PERSONNEL
MILITARY PERSONNEL, ARMY
For pay, allowances, individual clothing, subsistence, interest
on deposits, gratuities, permanent change of station travel (including all expenses thereof for organizational movements), and
expenses of temporary duty travel between permanent duty stations, for members of the Army on active duty (except members
of reserve components provided for elsewhere), cadets, and aviation
cadets; and for payments pursuant to section 156 of Public Law
97–377, as amended (42 U.S.C. 402 note), to section 229(b) of
the Social Security Act (42 U.S.C. 429(b)), and to the Department
of Defense Military Retirement Fund; $20,633,998,000.
MILITARY PERSONNEL, NAVY
For pay, allowances, individual clothing, subsistence, interest
on deposits, gratuities, permanent change of station travel (including all expenses thereof for organizational movements), and
expenses of temporary duty travel between permanent duty stations, for members of the Navy on active duty (except members
of the Reserve provided for elsewhere), midshipmen, and aviation
cadets; and for payments pursuant to section 156 of Public Law
97–377, as amended (42 U.S.C. 402 note), to section 229(b) of
the Social Security Act (42 U.S.C. 429(b)), and to the Department
of Defense Military Retirement Fund; $16,986,976,000.
MILITARY PERSONNEL, MARINE CORPS
For pay, allowances, individual clothing, subsistence, interest
on deposits, gratuities, permanent change of station travel (including all expenses thereof for organizational movements), and
expenses of temporary duty travel between permanent duty stations, for members of the Marine Corps on active duty (except
members of the Reserve provided for elsewhere); and for payments
pursuant to section 156 of Public Law 97–377, as amended (42

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–72

U.S.C. 402 note), to section 229(b) of the Social Security Act (42
U.S.C. 429(b)), and to the Department of Defense Military Retirement Fund; $6,111,728,000.
MILITARY PERSONNEL, AIR FORCE
For pay, allowances, individual clothing, subsistence, interest
on deposits, gratuities, permanent change of station travel (including all expenses thereof for organizational movements), and
expenses of temporary duty travel between permanent duty stations, for members of the Air Force on active duty (except members
of reserve components provided for elsewhere), cadets, and aviation
cadets; and for payments pursuant to section 156 of Public Law
97–377, as amended (42 U.S.C. 402 note), to section 229(b) of
the Social Security Act (42 U.S.C. 429(b)), and to the Department
of Defense Military Retirement Fund; $17,069,490,000.
RESERVE PERSONNEL, ARMY
For pay, allowances, clothing, subsistence, gratuities, travel,
and related expenses for personnel of the Army Reserve on active
duty under sections 10211, 10302, and 3038 of title 10, United
States Code, or while serving on active duty under section 12301(d)
of title 10, United States Code, in connection with performing
duty specified in section 12310(a) of title 10, United States Code,
or while undergoing reserve training, or while performing drills
or equivalent duty or other duty, and for members of the Reserve
Officers’ Training Corps, and expenses authorized by section 16131
of title 10, United States Code; and for payments to the Department
of Defense Military Retirement Fund; $2,073,479,000.
RESERVE PERSONNEL, NAVY
For pay, allowances, clothing, subsistence, gratuities, travel,
and related expenses for personnel of the Navy Reserve on active
duty under section 10211 of title 10, United States Code, or while
serving on active duty under section 12301(d) of title 10, United
States Code, in connection with performing duty specified in section
12310(a) of title 10, United States Code, or while undergoing reserve
training, or while performing drills or equivalent duty, and for
members of the Reserve Officers’ Training Corps, and expenses
authorized by section 16131 of title 10, United States Code; and
for payments to the Department of Defense Military Retirement
Fund; $1,405,606,000.
RESERVE PERSONNEL, MARINE CORPS
For pay, allowances, clothing, subsistence, gratuities, travel,
and related expenses for personnel of the Marine Corps Reserve
on active duty under section 10211 of title 10, United States Code,
or while serving on active duty under section 12301(d) of title
10, United States Code, in connection with performing duty specified
in section 12310(a) of title 10, United States Code, or while undergoing reserve training, or while performing drills or equivalent
duty, and for members of the Marine Corps platoon leaders class,
and expenses authorized by section 16131 of title 10, United States
Code; and for payments to the Department of Defense Military
Retirement Fund; $388,643,000.

110 STAT. 3009–73

PUBLIC LAW 104–208—SEPT. 30, 1996
RESERVE PERSONNEL, AIR FORCE

For pay, allowances, clothing, subsistence, gratuities, travel,
and related expenses for personnel of the Air Force Reserve on
active duty under sections 10211, 10305, and 8038 of title 10,
United States Code, or while serving on active duty under section
12301(d) of title 10, United States Code, in connection with performing duty specified in section 12310(a) of title 10, United States
Code, or while undergoing reserve training, or while performing
drills or equivalent duty or other duty, and for members of the
Air Reserve Officers’ Training Corps, and expenses authorized by
section 16131 of title 10, United States Code; and for payments
to the Department of Defense Military Retirement Fund;
$783,697,000.
NATIONAL GUARD PERSONNEL, ARMY
For pay, allowances, clothing, subsistence, gratuities, travel,
and related expenses for personnel of the Army National Guard
while on duty under section 10211, 10302, or 12402 of title 10
or section 708 of title 32, United States Code, or while serving
on duty under section 12301(d) of title 10 or section 502(f) of
title 32, United States Code, in connection with performing duty
specified in section 12310(a) of title 10, United States Code, or
while undergoing training, or while performing drills or equivalent
duty or other duty, and expenses authorized by section 16131 of
title 10, United States Code; and for payments to the Department
of Defense Military Retirement Fund; $3,266,393,000.
NATIONAL GUARD PERSONNEL, AIR FORCE
For pay, allowances, clothing, subsistence, gratuities, travel,
and related expenses for personnel of the Air National Guard on
duty under section 10211, 10305, or 12402 of title 10 or section
708 of title 32, United States Code, or while serving on duty
under section 12301(d) of title 10 or section 502(f) of title 32,
United States Code, in connection with performing duty specified
in section 12310(a) of title 10, United States Code, or while undergoing training, or while performing drills or equivalent duty or
other duty, and expenses authorized by section 16131 of title 10,
United States Code; and for payments to the Department of Defense
Military Retirement Fund; $1,296,490,000.
TITLE II
OPERATION AND MAINTENANCE
OPERATION

AND

MAINTENANCE, ARMY

(INCLUDING TRANSFER OF FUNDS)

For expenses, not otherwise provided for, necessary for the
operation and maintenance of the Army, as authorized by law;
and not to exceed $11,437,000 can be used for emergencies and
extraordinary expenses, to be expended on the approval or authority
of the Secretary of the Army, and payments may be made on
his certificate of necessity for confidential military purposes;
$17,519,340,000 and, in addition, $50,000,000 shall be derived by

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–74

transfer from the National Defense Stockpile Transaction Fund:
Provided, That during the current fiscal year and hereafter, funds
appropriated under this paragraph may be made available to the
Department of the Interior to support the Memorial Day and Fourth
of July ceremonies and activities in the National Capital Region:
Provided further, That of the funds appropriated in this paragraph,
not less than $300,000,000 shall be made available only for conventional ammunition care and maintenance.
OPERATION

AND

MAINTENANCE, NAVY

(INCLUDING TRANSFER OF FUNDS)

For expenses, not otherwise provided for, necessary for the
operation and maintenance of the Navy and the Marine Corps,
as authorized by law; and not to exceed $3,995,000, can be used
for emergencies and extraordinary expenses, to be expended on
the approval or authority of the Secretary of the Navy, and payments may be made on his certificate of necessity for confidential
military purposes; $20,061,961,000 and, in addition, $50,000,000
shall be derived by transfer from the National Defense Stockpile
Transaction Fund.
OPERATION

AND

MAINTENANCE, MARINE CORPS

For expenses, not otherwise provided for, necessary for the
operation and maintenance of the Marine Corps, as authorized
by law; $2,254,119,000.
OPERATION

AND

MAINTENANCE, AIR FORCE

(INCLUDING TRANSFER OF FUNDS)

For expenses, not otherwise provided for, necessary for the
operation and maintenance of the Air Force, as authorized by law;
and not to exceed $8,362,000 can be used for emergencies and
extraordinary expenses, to be expended on the approval or authority
of the Secretary of the Air Force, and payments may be made
on his certificate of necessity for confidential military purposes;
$17,263,193,000 and, in addition, $50,000,000 shall be derived by
transfer from the National Defense Stockpile Transaction Fund.
OPERATION

AND

MAINTENANCE, DEFENSE-WIDE

(INCLUDING TRANSFER OF FUNDS)

For expenses, not otherwise provided for, necessary for the
operation and maintenance of activities and agencies of the Department of Defense (other than the military departments), as authorized by law; $10,044,200,000, of which not to exceed $25,000,000
may be available for the CINC initiative fund account; and of
which not to exceed $28,500,000 can be used for emergencies and
extraordinary expenses, to be expended on the approval or authority
of the Secretary of Defense, and payments may be made on his
certificate of necessity for confidential military purposes: Provided,
That of the funds appropriated under this heading, $20,000,000
shall be made available only for use in federally owned education
facilities located on military installations for the purpose of transferring title of such facilities to the local education agency: Provided

43 USC 1471g.

110 STAT. 3009–75

PUBLIC LAW 104–208—SEPT. 30, 1996

further, That of the funds appropriated under this heading,
$1,000,000 is available, by grant or other transfer, to the Harnett
County School Board, Lillington, North Carolina, for use by the
school board for the education of dependents of members of the
Armed Forces and employees of the Department of Defense located
at Fort Bragg and Pope Air Force Base, North Carolina.
OPERATION

AND

MAINTENANCE, ARMY RESERVE

For expenses, not otherwise provided for, necessary for the
operation and maintenance, including training, organization, and
administration, of the Army Reserve; repair of facilities and equipment; hire of passenger motor vehicles; travel and transportation;
care of the dead; recruiting; procurement of services, supplies, and
equipment; and communications; $1,119,436,000.
OPERATION

AND

MAINTENANCE, NAVY RESERVE

For expenses, not otherwise provided for, necessary for the
operation and maintenance, including training, organization, and
administration, of the Navy Reserve; repair of facilities and equipment; hire of passenger motor vehicles; travel and transportation;
care of the dead; recruiting; procurement of services, supplies, and
equipment; and communications; $886,027,000.
OPERATION

AND

MAINTENANCE, MARINE CORPS RESERVE

For expenses, not otherwise provided for, necessary for the
operation and maintenance, including training, organization, and
administration, of the Marine Corps Reserve; repair of facilities
and equipment; hire of passenger motor vehicles; travel and
transportation; care of the dead; recruiting; procurement of services,
supplies, and equipment; and communications; $109,667,000.
OPERATION

AND

MAINTENANCE, AIR FORCE RESERVE

For expenses, not otherwise provided for, necessary for the
operation and maintenance, including training, organization, and
administration, of the Air Force Reserve; repair of facilities and
equipment; hire of passenger motor vehicles; travel and transportation; care of the dead; recruiting; procurement of services, supplies, and equipment; and communications; $1,496,553,000.
OPERATION

AND

MAINTENANCE, ARMY NATIONAL GUARD

For expenses of training, organizing, and administering the
Army National Guard, including medical and hospital treatment
and related expenses in non-Federal hospitals; maintenance, operation, and repairs to structures and facilities; hire of passenger
motor vehicles; personnel services in the National Guard Bureau;
travel expenses (other than mileage), as authorized by law for
Army personnel on active duty, for Army National Guard division,
regimental, and battalion commanders while inspecting units in
compliance with National Guard Bureau regulations when specifically authorized by the Chief, National Guard Bureau; supplying
and equipping the Army National Guard as authorized by law;
and expenses of repair, modification, maintenance, and issue of
supplies and equipment (including aircraft); $2,254,477,000.

PUBLIC LAW 104–208—SEPT. 30, 1996
OPERATION

AND

110 STAT. 3009–76

MAINTENANCE, AIR NATIONAL GUARD

For operation and maintenance of the Air National Guard,
including medical and hospital treatment and related expenses
in non-Federal hospitals; maintenance, operation, repair, and other
necessary expenses of facilities for the training and administration
of the Air National Guard, including repair of facilities, maintenance, operation, and modification of aircraft; transportation of
things, hire of passenger motor vehicles; supplies, materials, and
equipment, as authorized by law for the Air National Guard; and
expenses incident to the maintenance and use of supplies, materials,
and equipment, including such as may be furnished from stocks
under the control of agencies of the Department of Defense; travel
expenses (other than mileage) on the same basis as authorized
by law for Air National Guard personnel on active Federal duty,
for Air National Guard commanders while inspecting units in
compliance with National Guard Bureau regulations when specifically authorized by the Chief, National Guard Bureau;
$2,716,379,000.
OVERSEAS CONTINGENCY OPERATIONS TRANSFER FUND
(INCLUDING TRANSFER OF FUNDS)

For expenses directly relating to Overseas Contingency Operations by United States military forces; $1,140,157,000: Provided,
That the Secretary of Defense may transfer these funds only to
operation and maintenance accounts within this title: Provided
further, That the funds transferred shall be merged with and shall
be available for the same purposes and for the same time period,
as the appropriation to which transferred: Provided further, That
the transfer authority provided in this paragraph is in addition
to any other transfer authority contained elsewhere in this Act.
UNITED STATES COURT

OF

APPEALS

FOR THE

ARMED FORCES

For salaries and expenses necessary for the United States
Court of Appeals for the Armed Forces; $6,797,000, of which not
to exceed $2,500 can be used for official representation purposes.
ENVIRONMENTAL RESTORATION, ARMY
(INCLUDING TRANSFER OF FUNDS)

For the Department of the Army, $339,109,000, to remain
available until transferred: Provided, That the Secretary of the
Army shall, upon determining that such funds are required for
environmental restoration, reduction and recycling of hazardous
waste, removal of unsafe buildings and debris of the Department
of the Army, or for similar purposes, transfer the funds made
available by this appropriation to other appropriations made available to the Department of the Army, to be merged with and to
be available for the same purposes and for the same time period
as the appropriations to which transferred: Provided further, That
upon a determination that all or part of the funds transferred
from this appropriation are not necessary for the purposes provided
herein, such amounts may be transferred back to this appropriation:
Provided further, That not more than twenty-five percent of funds
provided under this heading may be obligated for environmental

110 STAT. 3009–77

PUBLIC LAW 104–208—SEPT. 30, 1996

remediation by the Corps of Engineers under total environmental
remediation contracts.
ENVIRONMENTAL RESTORATION, NAVY
(INCLUDING TRANSFER OF FUNDS)

For the Department of the Navy, $287,788,000, to remain available until transferred: Provided, That the Secretary of the Navy
shall, upon determining that such funds are required for environmental restoration, reduction and recycling of hazardous waste,
removal of unsafe buildings and debris of the Department of the
Navy, or for similar purposes, transfer the funds made available
by this appropriation to other appropriations made available to
the Department of the Navy, to be merged with and to be available
for the same purposes and for the same time period as the appropriations to which transferred: Provided further, That upon a determination that all or part of the funds transferred from this appropriation are not necessary for the purposes provided herein, such
amounts may be transferred back to this appropriation.
ENVIRONMENTAL RESTORATION, AIR FORCE
(INCLUDING TRANSFER OF FUNDS)

For the Department of the Air Force, $394,010,000, to remain
available until transferred: Provided, That the Secretary of the
Air Force shall, upon determining that such funds are required
for environmental restoration, reduction and recycling of hazardous
waste, removal of unsafe buildings and debris of the Department
of the Air Force, or for similar purposes, transfer the funds made
available by this appropriation to other appropriations made available to the Department of the Air Force, to be merged with and
to be available for the same purposes and for the same time period
as the appropriations to which transferred: Provided further, That
upon a determination that all or part of the funds transferred
from this appropriation are not necessary for the purposes provided
herein, such amounts may be transferred back to this appropriation.
ENVIRONMENTAL RESTORATION, DEFENSE-WIDE
(INCLUDING TRANSFER OF FUNDS)

For the Department of the Defense, $36,722,000, to remain
available until transferred: Provided, That the Secretary of Defense
shall, upon determining that such funds are required for environmental restoration, reduction and recycling of hazardous waste,
removal of unsafe buildings and debris of the Department of
Defense, or for similar purposes, transfer the funds made available
by this appropriation to other appropriations made available to
the Department of Defense, to be merged with and to be available
for the same purposes and for the same time period as the appropriations to which transferred: Provided further, That upon a determination that all or part of the funds transferred from this appropriation are not necessary for the purposes provided herein, such
amounts may be transferred back to this appropriation.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–78

ENVIRONMENTAL RESTORATION, FORMERLY USED DEFENSE SITES
(INCLUDING TRANSFER OF FUNDS)

For the Department of the Army, $256,387,000, to remain
available until transferred: Provided, That the Secretary of the
Army shall, upon determining that such funds are required for
environmental restoration, reduction and recycling of hazardous
waste, removal of unsafe buildings and debris at sites formerly
used by the Department of Defense, transfer the funds made available by this appropriation to other appropriations made available
to the Department of the Army, to be merged with and to be
available for the same purposes and for the same time period
as the appropriations to which transferred: Provided further, That
upon a determination that all or part of the funds transferred
from this appropriation are not necessary for the purposes provided
herein, such amounts may be transferred back to this appropriation.
OVERSEAS HUMANITARIAN, DISASTER,

AND

CIVIC AID

For expenses relating to the Overseas Humanitarian, Disaster,
and Civic Aid programs of the Department of Defense (consisting
of the programs provided under sections 401, 402, 404, 2547, and
2551 of title 10, United States Code); $49,000,000, to remain available until September 30, 1998.
FORMER SOVIET UNION THREAT REDUCTION
For assistance to the republics of the former Soviet Union,
including assistance provided by contract or by grants, for facilitating the elimination and the safe and secure transportation and
storage of nuclear, chemical and other weapons; for establishing
programs to prevent the proliferation of weapons, weapons components, and weapon-related technology and expertise; for programs
relating to the training and support of defense and military personnel for demilitarization and protection of weapons, weapons components and weapons technology and expertise; $327,900,000, to
remain available until expended.
QUALITY

OF

LIFE ENHANCEMENTS, DEFENSE

For expenses, not otherwise provided for, resulting from
unfunded shortfalls in the repair and maintenance of real property
of the Department of Defense (including military housing and barracks); $600,000,000, for the maintenance of real property of the
Department of Defense (including minor construction and major
maintenance and repair), which shall remain available for obligation
until September 30, 1998, as follows:
Army, $149,000,000;
Navy, $108,000,000;
Marine Corps, $45,000,000;
Air Force, $108,000,000;
Army Reserve, $18,000,000;
Navy Reserve, $18,000,000;
Marine Corps Reserve, $9,000,000;
Air Force Reserve, $15,000,000;
Army National Guard, $86,000,000; and
Air National Guard, $44,000,000.

110 STAT. 3009–79

PUBLIC LAW 104–208—SEPT. 30, 1996
TITLE III
PROCUREMENT
AIRCRAFT PROCUREMENT, ARMY

For construction, procurement, production, modification, and
modernization of aircraft, equipment, including ordnance, ground
handling equipment, spare parts, and accessories therefor; specialized equipment and training devices; expansion of public and private
plants, including the land necessary therefor, for the foregoing
purposes, and such lands and interests therein, may be acquired,
and construction prosecuted thereon prior to approval of title; and
procurement and installation of equipment, appliances, and
machine tools in public and private plants; reserve plant and
Government and contractor-owned equipment layaway; and other
expenses necessary for the foregoing purposes; $1,348,434,000, to
remain available for obligation until September 30, 1999.
MISSILE PROCUREMENT, ARMY
For construction, procurement, production, modification, and
modernization of missiles, equipment, including ordnance, ground
handling equipment, spare parts, and accessories therefor; specialized equipment and training devices; expansion of public and private
plants, including the land necessary therefor, for the foregoing
purposes, and such lands and interests therein, may be acquired,
and construction prosecuted thereon prior to approval of title; and
procurement and installation of equipment, appliances, and
machine tools in public and private plants; reserve plant and
Government and contractor-owned equipment layaway; and other
expenses necessary for the foregoing purposes; $1,041,867,000, to
remain available for obligation until September 30, 1999.
PROCUREMENT

OF

WEAPONS

AND TRACKED COMBAT VEHICLES,
ARMY

For construction, procurement, production, and modification
of weapons and tracked combat vehicles, equipment, including ordnance, spare parts, and accessories therefor; specialized equipment
and training devices; expansion of public and private plants, including the land necessary therefor, for the foregoing purposes, and
such lands and interests therein, may be acquired, and construction
prosecuted thereon prior to approval of title; and procurement and
installation of equipment, appliances, and machine tools in public
and private plants; reserve plant and Government and contractorowned equipment layaway; and other expenses necessary for the
foregoing purposes; $1,470,286,000, to remain available for obligation until September 30, 1999: Provided, That of the funds appropriated in this paragraph and notwithstanding the provisions of
title 31, United States Code, Section 1502(a), not to exceed
$33,100,000 may be obligated for future year V903 diesel engine
requirements to maintain the industrial base.
PROCUREMENT

OF

AMMUNITION, ARMY

For construction, procurement, production, and modification
of ammunition, and accessories therefor; specialized equipment and

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–80

training devices; expansion of public and private plants, including
ammunition facilities authorized by section 2854, title 10, United
States Code, and the land necessary therefor, for the foregoing
purposes, and such lands and interests therein, may be acquired,
and construction prosecuted thereon prior to approval of title; and
procurement and installation of equipment, appliances, and
machine tools in public and private plants; reserve plant and
Government and contractor-owned equipment layaway; and other
expenses necessary for the foregoing purposes; $1,127,149,000, to
remain available for obligation until September 30, 1999.
OTHER PROCUREMENT, ARMY
For construction, procurement, production, and modification
of vehicles, including tactical, support, and non-tracked combat
vehicles; the purchase of not to exceed 14 passenger motor vehicles
for replacement only; communications and electronic equipment;
other support equipment; spare parts, ordnance, and accessories
therefor; specialized equipment and training devices; expansion of
public and private plants, including the land necessary therefor,
for the foregoing purposes, and such lands and interests therein,
may be acquired, and construction prosecuted thereon prior to
approval of title; and procurement and installation of equipment,
appliances, and machine tools in public and private plants; reserve
plant and Government and contractor-owned equipment layaway;
and other expenses necessary for the foregoing purposes;
$3,172,485,000, to remain available for obligation until September
30, 1999: Provided, That of the funds appropriated in this paragraph
and notwithstanding the provisions of title 31, United States Code,
Section 1502(a), not to exceed $2,400,000 may be obligated for
future year V903 diesel engine requirements to maintain the industrial base.
AIRCRAFT PROCUREMENT, NAVY
For construction, procurement, production, modification, and
modernization of aircraft, equipment, including ordnance, spare
parts, and accessories therefor; specialized equipment; expansion
of public and private plants, including the land necessary therefor,
and such lands and interests therein, may be acquired, and
construction prosecuted thereon prior to approval of title; and
procurement and installation of equipment, appliances, and
machine tools in public and private plants; reserve plant and
Government
and
contractor-owned
equipment
layaway;
$7,027,010,000, to remain available for obligation until September
30, 1999.
WEAPONS PROCUREMENT, NAVY
For construction, procurement, production, modification, and
modernization of missiles, torpedoes, other weapons, and related
support equipment including spare parts, and accessories therefor;
expansion of public and private plants, including the land necessary
therefor, and such lands and interests therein, may be acquired,
and construction prosecuted thereon prior to approval of title; and
procurement and installation of equipment, appliances, and
machine tools in public and private plants; reserve plant and
Government
and
contractor-owned
equipment
layaway;

110 STAT. 3009–81

PUBLIC LAW 104–208—SEPT. 30, 1996

$1,389,913,000, to remain available for obligation until September
30, 1999: Provided, That in addition to the foregoing purposes,
the funds appropriated above under this heading shall be available
to liquidate reported deficiencies in appropriations provided under
this heading in prior Department of Defense appropriations acts,
to the extent such deficiencies cannot otherwise be liquidated pursuant to 31 U.S.C. 1553(b).
PROCUREMENT

OF

AMMUNITION, NAVY

AND

MARINE CORPS

For construction, procurement, production, and modification
of ammunition, and accessories therefor; specialized equipment and
training devices; expansion of public and private plants, including
ammunition facilities authorized by section 2854, title 10, United
States Code, and the land necessary therefor, for the foregoing
purposes, and such lands and interests therein, may be acquired,
and construction prosecuted thereon prior to approval of title; and
procurement and installation of equipment, appliances, and
machine tools in public and private plants; reserve plant and
Government and contractor-owned equipment layaway; and other
expenses necessary for the foregoing purposes; $289,695,000, to
remain available for obligation until September 30, 1999.
SHIPBUILDING

AND

CONVERSION, NAVY

For expenses necessary for the construction, acquisition, or
conversion of vessels as authorized by law, including armor and
armament thereof, plant equipment, appliances, and machine tools
and installation thereof in public and private plants; reserve plant
and Government and contractor-owned equipment layaway;
procurement of critical, long leadtime components and designs for
vessels to be constructed or converted in the future; and expansion
of public and private plants, including land necessary therefor,
and such lands and interests therein, may be acquired, and
construction prosecuted thereon prior to approval of title, as follows:
For continuation of the SSN–21 attack submarine program,
$649,071,000;
NSSN–1 (AP), $296,186,000;
NSSN–2 (AP), $501,000,000;
CVN Refuelings, $237,029,000;
DDG–51 destroyer program, $3,609,072,000;
Oceanographic ship program, $54,400,000;
Oceanographic ship SWATH, $45,000,000;
LCAC landing craft air cushion program (AP–CY),
$3,000,000; and
For craft, outfitting, post delivery, conversions, and first
destination transportation, $218,907,000;
In all: $5,613,665,000, to remain available for obligation until
September 30, 2001: Provided, That additional obligations may
be incurred after September 30, 2001, for engineering services,
tests, evaluations, and other such budgeted work that must be
performed in the final stage of ship construction: Provided further,
That none of the funds herein provided for the construction or
conversion of any naval vessel to be constructed in shipyards in
the United States shall be expended in foreign facilities for the
construction of major components of such vessel: Provided further,
That none of the funds herein provided shall be used for the
construction of any naval vessel in foreign shipyards.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–82

OTHER PROCUREMENT, NAVY
For procurement, production, and modernization of support
equipment and materials not otherwise provided for, Navy ordnance
(except ordnance for new aircraft, new ships, and ships authorized
for conversion); expansion of public and private plants, including
the land necessary therefor, and such lands and interests therein,
may be acquired, and construction prosecuted thereon prior to
approval of title; and procurement and installation of equipment,
appliances, and machine tools in public and private plants; reserve
plant and Government and contractor-owned equipment layaway;
$3,067,944,000, to remain available for obligation until September
30, 1999.
PROCUREMENT, MARINE CORPS
For expenses necessary for the procurement, manufacture, and
modification of missiles, armament, military equipment, spare
parts, and accessories therefor; plant equipment, appliances, and
machine tools, and installation thereof in public and private plants;
reserve plant and Government and contractor-owned equipment
layaway; vehicles for the Marine Corps, including the purchase
of not to exceed 88 passenger motor vehicles for replacement only;
and expansion of public and private plants, including land necessary
therefor, and such lands and interests therein, may be acquired
and construction prosecuted thereon prior to approval of title;
$569,073,000, to remain available for obligation until September
30, 1999.
AIRCRAFT PROCUREMENT, AIR FORCE
For construction, procurement, and modification of aircraft and
equipment, including armor and armament, specialized ground handling equipment, and training devices, spare parts, and accessories
therefor; specialized equipment; expansion of public and private
plants, Government-owned equipment and installation thereof in
such plants, erection of structures, and acquisition of land, for
the foregoing purposes, and such lands and interests therein, may
be acquired, and construction prosecuted thereon prior to approval
of title; reserve plant and Government and contractor-owned equipment layaway; and other expenses necessary for the foregoing purposes including rents and transportation of things; $6,404,980,000,
to remain available for obligation until September 30, 1999.
MISSILE PROCUREMENT, AIR FORCE
For construction, procurement, and modification of missiles,
spacecraft, rockets, and related equipment, including spare parts
and accessories therefor, ground handling equipment, and training
devices; expansion of public and private plants, Government-owned
equipment and installation thereof in such plants, erection of structures, and acquisition of land, for the foregoing purposes, and
such lands and interests therein, may be acquired, and construction
prosecuted thereon prior to approval of title; reserve plant and
Government and contractor-owned equipment layaway; and other
expenses necessary for the foregoing purposes including rents and
transportation of things; $2,297,145,000, to remain available for
obligation until September 30, 1999.

110 STAT. 3009–83

PUBLIC LAW 104–208—SEPT. 30, 1996
PROCUREMENT

OF

AMMUNITION, AIR FORCE

For construction, procurement, production, and modification
of ammunition, and accessories therefor; specialized equipment and
training devices; expansion of public and private plants, including
ammunition facilities authorized by section 2854, title 10, United
States Code, and the land necessary therefor, for the foregoing
purposes, and such lands and interests therein, may be acquired,
and construction prosecuted thereon prior to approval of title; and
procurement and installation of equipment, appliances, and
machine tools in public and private plants; reserve plant and
Government and contractor-owned equipment layaway; and other
expenses necessary for the foregoing purposes; $293,153,000, to
remain available for obligation until September 30, 1999.
OTHER PROCUREMENT, AIR FORCE
For procurement and modification of equipment (including
ground guidance and electronic control equipment, and ground electronic and communication equipment), and supplies, materials, and
spare parts therefor, not otherwise provided for; the purchase of
not to exceed 506 passenger motor vehicles for replacement only;
the purchase of 1 vehicle required for physical security of personnel,
notwithstanding price limitations applicable to passenger vehicles
but not to exceed $287,000 per vehicle; and expansion of public
and private plants, Government-owned equipment and installation
thereof in such plants, erection of structures, and acquisition of
land, for the foregoing purposes, and such lands and interests
therein, may be acquired, and construction prosecuted thereon,
prior to approval of title; reserve plant and Government and contractor-owned equipment layaway; $5,944,680,000, to remain available
for obligation until September 30, 1999.
PROCUREMENT, DEFENSE-WIDE
For expenses of activities and agencies of the Department of
Defense (other than the military departments) necessary for
procurement, production, and modification of equipment, supplies,
materials, and spare parts therefor, not otherwise provided for;
the purchase of not to exceed 389 passenger motor vehicles for
replacement only; expansion of public and private plants, equipment, and installation thereof in such plants, erection of structures,
and acquisition of land for the foregoing purposes, and such lands
and interests therein, may be acquired, and construction prosecuted
thereon prior to approval of title; reserve plant and Government
and contractor-owned equipment layaway; $1,978,005,000, to
remain available for obligation until September 30, 1999.
NATIONAL GUARD

AND

RESERVE EQUIPMENT

For procurement of aircraft, missiles, tracked combat vehicles,
ammunition, other weapons, and other procurement for the reserve
components of the Armed Forces; $780,000,000, to remain available
for obligation until September 30, 1999: Provided, That the Chiefs
of the Reserve and National Guard components shall, not later
than 30 days after the enactment of this Act, individually submit
to the congressional defense committees the modernization priority

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–84

assessment for their respective Reserve or National Guard component.
TITLE IV—RESEARCH, DEVELOPMENT, TEST AND
EVALUATION
RESEARCH, DEVELOPMENT, TEST

AND

EVALUATION, ARMY

For expenses necessary for basic and applied scientific research,
development, test and evaluation, including maintenance,
rehabilitation, lease, and operation of facilities and equipment;
$5,062,763,000, to remain available for obligation until September
30, 1998.
RESEARCH, DEVELOPMENT, TEST

AND

EVALUATION, NAVY

For expenses necessary for basic and applied scientific research,
development, test and evaluation, including maintenance,
rehabilitation, lease, and operation of facilities and equipment;
$8,208,946,000, to remain available for obligation until September
30, 1998: Provided, That funds appropriated in this paragraph
which are available for the V–22 may be used to meet unique
requirements of the Special Operations Forces.
RESEARCH, DEVELOPMENT, TEST

AND

EVALUATION, AIR FORCE

For expenses necessary for basic and applied scientific research,
development, test and evaluation, including maintenance,
rehabilitation, lease, and operation of facilities and equipment;
$14,499,606,000, to remain available for obligation until September
30, 1998: Provided, That not less than $1,000,000 of the funds
appropriated in this paragraph shall be made available only to
assess the budgetary, cost, technical, operational, training, and
safety issues associated with a decision to eliminate development
of the F–22B two-seat training variant of the F–22 advanced tactical
fighter: Provided further, That the assessment required by the
preceding proviso shall be submitted, in classified and unclassified
versions, by the Secretary of the Air Force to the congressional
defense committees not later than February 15, 1997: Provided
further, That of the funds made available in this paragraph,
$10,000,000 shall be only for development of reusable launch vehicle
technologies.
RESEARCH, DEVELOPMENT, TEST

AND

EVALUATION, DEFENSE-WIDE

For expenses of activities and agencies of the Department of
Defense (other than the military departments), necessary for basic
and applied scientific research, development, test and evaluation;
advanced research projects as may be designated and determined
by the Secretary of Defense, pursuant to law; maintenance,
rehabilitation, lease, and operation of facilities and equipment;
$9,362,800,000, to remain available for obligation until September
30, 1998: Provided, That not less than $304,171,000 of the funds
appropriated in this paragraph shall be made available only for
the Sea-Based Wide Area Defense (Navy Upper-Tier) program.

110 STAT. 3009–85

PUBLIC LAW 104–208—SEPT. 30, 1996
DEVELOPMENTAL TEST

AND

EVALUATION, DEFENSE

For expenses, not otherwise provided for, of independent activities of the Director, Test and Evaluation in the direction and
supervision of developmental test and evaluation, including
performance and joint developmental testing and evaluation; and
administrative expenses in connection therewith; $282,038,000, to
remain available for obligation until September 30, 1998.
OPERATIONAL TEST

AND

EVALUATION, DEFENSE

For expenses, not otherwise provided for, necessary for the
independent activities of the Director, Operational Test and Evaluation in the direction and supervision of operational test and evaluation, including initial operational test and evaluation which is conducted prior to, and in support of, production decisions; joint operational testing and evaluation; and administrative expenses in
connection therewith; $24,968,000, to remain available for obligation
until September 30, 1998.
TITLE V—REVOLVING AND MANAGEMENT FUNDS
DEFENSE BUSINESS OPERATIONS FUND
For the Defense Business Operations Fund; $947,900,000.
NATIONAL DEFENSE SEALIFT FUND
For National Defense Sealift Fund programs, projects, and
activities, and for expenses of the National Defense Reserve Fleet,
as established by section 11 of the Merchant Ship Sales Act of
1946 (50 U.S.C. App. 1744); $1,428,002,000, to remain available
until expended: Provided, That none of the funds provided in this
paragraph shall be used to award a new contract that provides
for the acquisition of any of the following major components unless
such components are manufactured in the United States: auxiliary
equipment, including pumps, for all ship-board services; propulsion
system components (that is; engines, reduction gears, and propellers); shipboard cranes; and spreaders for shipboard cranes: Provided further, That the exercise of an option in a contract awarded
through the obligation of previously appropriated funds shall not
be considered to be the award of a new contract: Provided further,
That the Secretary of the military department responsible for such
procurement may waive these restrictions on a case-by-case basis
by certifying in writing to the Committees on Appropriations of
the House of Representatives and the Senate, that adequate domestic supplies are not available to meet Department of Defense
requirements on a timely basis and that such an acquisition must
be made in order to acquire capability for national security purposes.
TITLE VI—OTHER DEPARTMENT OF DEFENSE PROGRAMS
DEFENSE HEALTH PROGRAM
For expenses, not otherwise provided for, for medical and health
care programs of the Department of Defense, as authorized by
law; $10,207,308,000, of which $9,937,838,000 shall be for Operation

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–86

and maintenance, of which not to exceed three percent shall remain
available until September 30, 1998; and of which $269,470,000,
to remain available for obligation until September 30, 1999, shall
be for Procurement: Provided, That of the funds appropriated under
this heading, $14,500,000 shall be made available for obtaining
emergency communications services for members of the Armed
Forces and their families from the American National Red Cross:
Provided further, That notwithstanding any other provision of law,
of the funds provided under this heading, the Secretary of Defense
is directed to use and obligate, within thirty days of enactment
of this Act, not less than $3,400,000 only to permit private sector
or non-Federal physicians who have used and will use the antibacterial treatment method based upon the excretion of dead and
decaying spherical bacteria to work in conjunction with the Walter
Reed Army Medical Center on a treatment protocol and related
studies for Desert Storm Syndrome affected veterans.
CHEMICAL AGENTS

AND

MUNITIONS DESTRUCTION, DEFENSE

For expenses, not otherwise provided for, necessary for the
destruction of the United States stockpile of lethal chemical agents
and munitions in accordance with the provisions of section 1412
of the Department of Defense Authorization Act, 1986 (50 U.S.C.
1521), and for the destruction of other chemical warfare materials
that are not in the chemical weapon stockpile, $758,447,000, of
which $478,947,000 shall be for Operation and maintenance,
$191,200,000 shall be for Procurement to remain available until
September 30, 1999, and $88,300,000 shall be for Research, development, test and evaluation to remain available until September
30, 1998: Provided, That of the funds made available under this
heading, $1,000,000 shall be available until expended only for a
Johnston Atoll off-island leave program: Provided further, That
notwithstanding any other provision of law, the Secretaries concerned may, pursuant to uniform regulations prescribe travel and
transportation allowances for travel by participants in the off-island
leave program.
DRUG INTERDICTION

AND

COUNTER-DRUG ACTIVITIES, DEFENSE

(INCLUDING TRANSFER OF FUNDS)

For drug interdiction and counter-drug activities of the Department of Defense, for transfer to appropriations available to the
Department of Defense for military personnel of the reserve components serving under the provisions of title 10 and title 32, United
States Code; for Operation and maintenance; for Procurement; and
for Research, development, test and evaluation; $807,800,000: Provided, That the funds appropriated by this paragraph shall be
available for obligation for the same time period and for the same
purpose as the appropriation to which transferred: Provided further,
That the transfer authority provided in this paragraph is in addition
to any transfer authority contained elsewhere in this Act.
OFFICE

OF THE INSPECTOR

GENERAL

For expenses and activities of the Office of the Inspector General in carrying out the provisions of the Inspector General Act
of 1978, as amended; $139,157,000, of which $137,157,000 shall

110 STAT. 3009–87

PUBLIC LAW 104–208—SEPT. 30, 1996

be for Operation and maintenance, of which not to exceed $500,000
is available for emergencies and extraordinary expenses to be
expended on the approval or authority of the Inspector General,
and payments may be made on his certificate of necessity for
confidential military purposes; and of which $2,000,000, to remain
available until September 30, 1999, shall be for Procurement.
TITLE VII—RELATED AGENCIES
CENTRAL INTELLIGENCE AGENCY RETIREMENT
SYSTEM FUND

AND

DISABILITY

For payment to the Central Intelligence Agency Retirement
and Disability System Fund, to maintain proper funding level for
continuing the operation of the Central Intelligence Agency Retirement and Disability System; $196,400,000.
INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT
For necessary expenses of the Intelligence Community Management Account; $129,164,000: Provided, That of the funds appropriated under this heading, $27,000,000 shall be transferred to
the Department of Justice for the National Drug Intelligence Center
to support the Department of Defense’s counterdrug monitoring
and detection responsibilities.
PAYMENT

TO

KAHO’OLAWE ISLAND CONVEYANCE, REMEDIATION,
ENVIRONMENTAL RESTORATION FUND

AND

For payment to Kaho’olawe Island Conveyance, Remediation,
and Environmental Restoration Fund, as authorized by law;
$10,000,000, to remain available until expended.
NATIONAL SECURITY EDUCATION TRUST FUND
For the purposes of title VIII of Public Law 102–183,
$5,100,000, to be derived from the National Security Education
Trust Fund, to remain available until expended.
TITLE VIII—GENERAL PROVISIONS

10 USC 1584
note.

SEC. 8001. No part of any appropriation contained in this
Act shall be used for publicity or propaganda purposes not authorized by the Congress.
SEC. 8002. During the current fiscal year, provisions of law
prohibiting the payment of compensation to, or employment of,
any person not a citizen of the United States shall not apply
to personnel of the Department of Defense: Provided, That salary
increases granted to direct and indirect hire foreign national
employees of the Department of Defense funded by this Act shall
not be at a rate in excess of the percentage increase authorized
by law for civilian employees of the Department of Defense whose
pay is computed under the provisions of section 5332 of title 5,
United States Code, or at a rate in excess of the percentage increase
provided by the appropriate host nation to its own employees,
whichever is higher: Provided further, That this section shall not
apply to Department of Defense foreign service national employees
serving at United States diplomatic missions whose pay is set

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–88

by the Department of State under the Foreign Service Act of 1980:
Provided further, That the limitations of this provision shall not
apply to foreign national employees of the Department of Defense
in the Republic of Turkey.
SEC. 8003. 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. 8004. No more than 20 per centum of the appropriations
in this Act which are limited for obligation during the current
fiscal year shall be obligated during the last two months of the
fiscal year: Provided, That this section shall not apply to obligations
for support of active duty training of reserve components or summer
camp training of the Reserve Officers’ Training Corps.
(TRANSFER OF FUNDS)

SEC. 8005. Upon determination by the Secretary of Defense
that such action is necessary in the national interest, he may,
with the approval of the Office of Management and Budget, transfer
not to exceed $2,000,000,000 of working capital funds of the Department of Defense or funds made available in this Act to the Department of Defense for military functions (except military construction)
between such appropriations or funds or any subdivision thereof,
to be merged with and to be available for the same purposes,
and for the same time period, as the appropriation or fund to
which transferred: Provided, That such authority to transfer may
not be used unless for higher priority items, based on unforeseen
military requirements, than those for which originally appropriated
and in no case where the item for which funds are requested
has been denied by Congress: Provided further, That the Secretary
of Defense shall notify the Congress promptly of all transfers made
pursuant to this authority or any other authority in this Act:
Provided further, That no part of the funds in this Act shall be
available to prepare or present a request to the Committees on
Appropriations for reprogramming of funds, unless for higher priority items, based on unforeseen military requirements, than those
for which originally appropriated and in no case where the item
for which reprogramming is requested has been denied by the
Congress.
(TRANSFER OF FUNDS)

SEC. 8006. During the current fiscal year, cash balances in
working capital funds of the Department of Defense established
pursuant to section 2208 of title 10, United States Code, may
be maintained in only such amounts as are necessary at any time
for cash disbursements to be made from such funds: Provided,
That transfers may be made between such funds and the ‘‘Foreign
Currency Fluctuations, Defense’’ and ‘‘Operation and Maintenance’’
appropriation accounts in such amounts as may be determined
by the Secretary of Defense, with the approval of the Office of
Management and Budget, except that such transfers may not be
made unless the Secretary of Defense has notified the Congress
of the proposed transfer. Except in amounts equal to the amounts
appropriated to working capital funds in this Act, no obligations
may be made against a working capital fund to procure or increase
the value of war reserve material inventory, unless the Secretary
of Defense has notified the Congress prior to any such obligation.

110 STAT. 3009–89

PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 8007. Funds appropriated by this Act may not be used
to initiate a special access program without prior notification 30
calendar days in session in advance to the congressional defense
committees.
SEC. 8008. None of the funds contained in this Act available
for the Civilian Health and Medical Program of the Uniformed
Services shall be available for payments to physicians and other
non-institutional health care providers in excess of the amounts
allowed in fiscal year 1996 for similar services, except that: (a)
for services for which the Secretary of Defense determines an
increase is justified by economic circumstances, the allowable
amounts may be increased in accordance with appropriate economic
index data similar to that used pursuant to title XVIII of the
Social Security Act; and (b) for services the Secretary determines
are overpriced based on allowable payments under title XVIII of
the Social Security Act, the allowable amounts shall be reduced
by not more than 15 percent (except that the reduction may be
waived if the Secretary determines that it would impair adequate
access to health care services for beneficiaries). The Secretary shall
solicit public comment prior to promulgating regulations to implement this section. Such regulations shall include a limitation, similar to that used under title XVIII of the Social Security Act, on
the extent to which a provider may bill a beneficiary an actual
charge in excess of the allowable amount.
SEC. 8009. None of the funds provided in this Act shall be
available to initiate (1) a multiyear contract that employs economic
order quantity procurement in excess of $20,000,000 in any one
year of the contract or that includes an unfunded contingent liability
in excess of $20,000,000, or (2) a contract for advance procurement
leading to a multiyear contract that employs economic order quantity procurement in excess of $20,000,000 in any one year, unless
the congressional defense committees have been notified at least
thirty days in advance of the proposed contract award: Provided,
That no part of any appropriation contained in this Act shall
be available to initiate a multiyear contract for which the economic
order quantity advance procurement is not funded at least to the
limits of the Government’s liability: Provided further, That no part
of any appropriation contained in this Act shall be available to
initiate multiyear procurement contracts for any systems or component thereof if the value of the multiyear contract would exceed
$500,000,000 unless specifically provided in this Act: Provided further, That no multiyear procurement contract can be terminated
without 10-day prior notification to the congressional defense
committees: Provided further, That the execution of multiyear
authority shall require the use of a present value analysis to determine lowest cost compared to an annual procurement: Provided
further, That notwithstanding Section 8010 of Public Law 104–
61, funds appropriated for the DDG–51 destroyer program in Public
Law 104–61 may be used to initiate a multiyear contract for the
Arleigh Burke class destroyer program.
Funds appropriated in title III of this Act may be used for
multiyear procurement contracts as follows:
Javelin missiles;
Army Tactical Missile System (ATACMS);
MK19–3 grenade machine guns;
M16A2 rifles;
M249 Squad Automatic Weapons;

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–90

M4 carbine rifles;
M240B machine guns; and
Arleigh Burke (DDG–51) class destroyers.
SEC. 8010. Within the funds appropriated for the operation
and maintenance of the Armed Forces, funds are hereby appropriated pursuant to section 401 of title 10, United States Code,
for humanitarian and civic assistance costs under chapter 20 of
title 10, United States Code. Such funds may also be obligated
for humanitarian and civic assistance costs incidental to authorized
operations and pursuant to authority granted in section 401 of
chapter 20 of title 10, United States Code, and these obligations
shall be reported to Congress on September 30 of each year: Provided, That funds available for operation and maintenance shall
be available for providing humanitarian and similar assistance
by using Civic Action Teams in the Trust Territories of the Pacific
Islands and freely associated states of Micronesia, pursuant to
the Compact of Free Association as authorized by Public Law 99–
239: Provided further, That upon a determination by the Secretary
of the Army that such action is beneficial for graduate medical
education programs conducted at Army medical facilities located
in Hawaii, the Secretary of the Army may authorize the provision
of medical services at such facilities and transportation to such
facilities, on a nonreimbursable basis, for civilian patients from
American Samoa, the Commonwealth of the Northern Mariana
Islands, the Marshall Islands, the Federated States of Micronesia,
Palau, and Guam.
SEC. 8011. (a) During fiscal year 1997, the civilian personnel
of the Department of Defense may not be managed on the basis
of any end-strength, and the management of such personnel during
that fiscal year shall not be subject to any constraint or limitation
(known as an end-strength) on the number of such personnel who
may be employed on the last day of such fiscal year.
(b) The fiscal year 1998 budget request for the Department
of Defense as well as all justification material and other documentation supporting the fiscal year 1998 Department of Defense budget
request shall be prepared and submitted to the Congress as if
subsections (a) and (b) of this provision were effective with regard
to fiscal year 1998.
(c) Nothing in this section shall be construed to apply to military
(civilian) technicians.
SEC. 8012. Notwithstanding any other provision of law, none
of the funds made available by this Act shall be used by the
Department of Defense to exceed, outside the fifty United States,
its territories, and the District of Columbia, 125,000 civilian
workyears: Provided, That workyears shall be applied as defined
in the Federal Personnel Manual: Provided further, That workyears
expended in dependent student hiring programs for disadvantaged
youths shall not be included in this workyear limitation.
SEC. 8013. None of the funds made available by this Act shall
be used in any way, directly or indirectly, to influence congressional
action on any legislation or appropriation matters pending before
the Congress.
SEC. 8014. (a) None of the funds appropriated by this Act
shall be used to make contributions to the Department of Defense
Education Benefits Fund pursuant to section 2006(g) of title 10,
United States Code, representing the normal cost for future benefits

10 USC 401 note.

110 STAT. 3009–91

PUBLIC LAW 104–208—SEPT. 30, 1996

under section 3015(c) of title 38, United States Code, for any member of the armed services who, on or after the date of enactment
of this Act—
(1) enlists in the armed services for a period of active
duty of less than three years; or
(2) receives an enlistment bonus under section 308a or
308f of title 37, United States Code,
nor shall any amounts representing the normal cost of such future
benefits be transferred from the Fund by the Secretary of the
Treasury to the Secretary of Veterans Affairs pursuant to section
2006(d) of title 10, United States Code; nor shall the Secretary
of Veterans Affairs pay such benefits to any such member: Provided,
That in the case of a member covered by clause (1), these limitations
shall not apply to members in combat arms skills or to members
who enlist in the armed services on or after July 1, 1989, under
a program continued or established by the Secretary of Defense
in fiscal year 1991 to test the cost-effective use of special recruiting
incentives involving not more than nineteen noncombat arms skills
approved in advance by the Secretary of Defense: Provided further,
That this subsection applies only to active components of the Army.
(b) None of the funds appropriated by this Act shall be available
for the basic pay and allowances of any member of the Army
participating as a full-time student and receiving benefits paid
by the Secretary of Veterans Affairs from the Department of Defense
Education Benefits Fund when time spent as a full-time student
is credited toward completion of a service commitment: Provided,
That this subsection shall not apply to those members who have
reenlisted with this option prior to October 1, 1987: Provided further, That this subsection applies only to active components of
the Army.
SEC. 8015. None of the funds appropriated by this Act shall
be available to convert to contractor performance an activity or
function of the Department of Defense that, on or after the date
of enactment of this Act, is performed by more than ten Department
of Defense civilian employees until a most efficient and cost-effective
organization analysis is completed on such activity or function
and certification of the analysis is made to the Committees on
Appropriations of the House of Representatives and the Senate:
Provided, That this section shall not apply to a commercial or
industrial type function of the Department of Defense that: (1)
is included on the procurement list established pursuant to section
2 of the Act of June 25, 1938 (41 U.S.C. 47), popularly referred
to as the Javits-Wagner-O’Day Act; (2) is planned to be converted
to performance by a qualified nonprofit agency for the blind or
by a qualified nonprofit agency for other severely handicapped
individuals in accordance with that Act; or (3) is planned to be
converted to performance by a qualified firm under 51 percent
Native American ownership.
(TRANSFER OF FUNDS)

SEC. 8016. Funds appropriated in title III of this Act for the
Department of Defense Pilot Mentor-Protege Program may be transferred to any other appropriation contained in this Act solely for
the purpose of implementing a Mentor-Protege Program developmental assistance agreement pursuant to section 831 of the
National Defense Authorization Act for Fiscal Year 1991 (Public

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–92

Law 101–510; 10 U.S.C. 2301 note), as amended, under the authority of this provision or any other transfer authority contained in
this Act.
SEC. 8017. None of the funds in this Act may be available
for the purchase by the Department of Defense (and its departments
and agencies) of welded shipboard anchor and mooring chain 4
inches in diameter and under unless the anchor and mooring chain
are manufactured in the United States from components which
are substantially manufactured in the United States: Provided,
That for the purpose of this section manufactured will include
cutting, heat treating, quality control, testing of chain and welding
(including the forging and shot blasting process): Provided further,
That for the purpose of this section substantially all of the components of anchor and mooring chain shall be considered to be produced or manufactured in the United States if the aggregate cost
of the components produced or manufactured in the United States
exceeds the aggregate cost of the components produced or manufactured outside the United States: Provided further, That when adequate domestic supplies are not available to meet Department of
Defense requirements on a timely basis, the Secretary of the service
responsible for the procurement may waive this restriction on a
case-by-case basis by certifying in writing to the Committees on
Appropriations that such an acquisition must be made in order
to acquire capability for national security purposes.
SEC. 8018. None of the funds appropriated by this Act available
for the Civilian Health and Medical Program of the Uniformed
Services (CHAMPUS) shall be available for the reimbursement
of any health care provider for inpatient mental health service
for care received when a patient is referred to a provider of inpatient
mental health care or residential treatment care by a medical
or health care professional having an economic interest in the
facility to which the patient is referred: Provided, That this limitation does not apply in the case of inpatient mental health services
provided under the program for the handicapped under subsection
(d) of section 1079 of title 10, United States Code, provided as
partial hospital care, or provided pursuant to a waiver authorized
by the Secretary of Defense because of medical or psychological
circumstances of the patient that are confirmed by a health professional who is not a Federal employee after a review, pursuant
to rules prescribed by the Secretary, which takes into account
the appropriate level of care for the patient, the intensity of services
required by the patient, and the availability of that care.
SEC. 8019. Funds available in this Act may be used to provide
transportation for the next-of-kin of individuals who have been
prisoners of war or missing in action from the Vietnam era to
an annual meeting in the United States, under such regulations
as the Secretary of Defense may prescribe.
SEC. 8020. Notwithstanding any other provision of law, during
the current fiscal year, the Secretary of Defense may, by Executive
Agreement, establish with host nation governments in NATO member states a separate account into which such residual value
amounts negotiated in the return of United States military installations in NATO member states may be deposited, in the currency
of the host nation, in lieu of direct monetary transfers to the
United States Treasury: Provided, That such credits may be utilized
only for the construction of facilities to support United States military forces in that host nation, or such real property maintenance

10 USC 2687
note.

110 STAT. 3009–93

PUBLIC LAW 104–208—SEPT. 30, 1996

and base operating costs that are currently executed through monetary transfers to such host nations: Provided further, That the
Department of Defense’s budget submission for fiscal year 1998
shall identify such sums anticipated in residual value settlements,
and identify such construction, real property maintenance or base
operating costs that shall be funded by the host nation through
such credits: Provided further, That all military construction
projects to be executed from such accounts must be previously
approved in a prior Act of Congress: Provided further, That each
such Executive Agreement with a NATO member host nation shall
be reported to the congressional defense committees, the Committee
on International Relations of the House of Representatives and
the Committee on Foreign Relations of the Senate thirty days
prior to the conclusion and endorsement of any such agreement
established under this provision.
SEC. 8021. None of the funds available to the Department
of Defense may be used to demilitarize or dispose of M–1 Carbines,
M–1 Garand rifles, M–14 rifles, .22 caliber rifles, .30 caliber rifles,
or M–1911 pistols.
SEC. 8022. Notwithstanding any other provision of law, none
of the funds appropriated by this Act shall be available to pay
more than 50 percent of an amount paid to any person under
section 308 of title 37, United States Code, in a lump sum.
SEC. 8023. None of the funds appropriated by this Act shall
be available for payments under the Department of Defense contract
with the Louisiana State University Medical Center involving the
use of cats for Brain Missile Wound Research, and the Department
of Defense shall not make payments under such contract from
funds obligated prior to the date of the enactment of this Act,
except as necessary for costs incurred by the contractor prior to
the enactment of this Act: Provided, That funds necessary for the
care of animals covered by this contract are allowed.
SEC. 8024. Of the funds made available by this Act in title
III, Procurement, $8,000,000, drawn pro rata from each appropriations account in title III, shall be available for incentive payments
authorized by section 504 of the Indian Financing Act of 1974,
25 U.S.C. 1544. These payments shall be available only to contractors which have submitted subcontracting plans pursuant to 15
U.S.C. 637(d), and according to regulations which shall be promulgated by the Secretary of Defense within 90 days of the passage
of this Act.
SEC. 8025. None of the funds provided in this Act or any
other Act shall be available to conduct bone trauma research at
any Army Research Laboratory until the Secretary of the Army
certifies that the synthetic compound to be used in the experiments
is of such a type that its use will result in a significant medical
finding, the research has military application, the research will
be conducted in accordance with the standards set by an animal
care and use committee, and the research does not duplicate
research already conducted by a manufacturer or any other research
organization.
SEC. 8026. During the current fiscal year, none of the funds
available to the Department of Defense may be used to procure
or acquire (1) defensive handguns unless such handguns are the
M9 or M11 9mm Department of Defense standard handguns, or
(2) offensive handguns except for the Special Operations Forces:

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–94

Provided, That the foregoing shall not apply to handguns and
ammunition for marksmanship competitions.
SEC. 8027. No more than $500,000 of the funds appropriated
or made available in this Act shall be used for any single relocation
of an organization, unit, activity or function of the Department
of Defense into or within the National Capital Region: Provided,
That the Secretary of Defense may waive this restriction on a
case-by-case basis by certifying in writing to the Congressional
defense committees that such a relocation is required in the best
interest of the Government.
SEC. 8028. During the current fiscal year, funds appropriated
or otherwise available for any Federal agency, the Congress, the
judicial branch, or the District of Columbia may be used for the
pay, allowances, and benefits of an employee as defined by section
2105 of title 5 or an individual employed by the government of
the District of Columbia, permanent or temporary indefinite, who—
(1) is a member of a Reserve component of the Armed
Forces, as described in section 261 of title 10, or the National
Guard, as described in section 101 of title 32;
(2) performs, for the purpose of providing military aid
to enforce the law or providing assistance to civil authorities
in the protection or saving of life or property or prevention
of injury—
(A) Federal service under sections 331, 332, 333, or
12406 of title 10, or other provision of law, as applicable,
or
(B) full-time military service for his or her State, the
District of Columbia, the Commonwealth of Puerto Rico,
or a territory of the United States; and
(3) requests and is granted—
(A) leave under the authority of this section; or
(B) annual leave, which may be granted without regard
to the provisions of sections 5519 and 6323(b) of title 5,
if such employee is otherwise entitled to such annual leave:
Provided, That any employee who requests leave under subsection
(3)(A) for service described in subsection (2) of this section is entitled
to such leave, subject to the provisions of this section and of the
last sentence of section 6323(b) of title 5, and such leave shall
be considered leave under section 6323(b) of title 5.
SEC. 8029. None of the funds appropriated by this Act shall
be available to perform any cost study pursuant to the provisions
of OMB Circular A–76 if the study being performed exceeds a
period of twenty-four months after initiation of such study with
respect to a single function activity or forty-eight months after
initiation of such study for a multi-function activity.
SEC. 8030. Funds appropriated by this Act for the American
Forces Information Service shall not be used for any national or
international political or psychological activities.
SEC. 8031. Notwithstanding any other provision of law or regulation, the Secretary of Defense may adjust wage rates for civilian
employees hired for certain health care occupations as authorized
for the Secretary of Veterans Affairs by section 7455 of title 38,
United States Code.
SEC. 8032. None of the funds appropriated or made available
in this Act shall be used to reduce or disestablish the operation
of the 53rd Weather Reconnaissance Squadron of the Air Force

110 STAT. 3009–95

PUBLIC LAW 104–208—SEPT. 30, 1996

Reserve, if such action would reduce the WC–130 Weather Reconnaissance mission below the levels funded in this Act.
SEC. 8033. (a) Of the funds for the procurement of supplies
or services appropriated by this Act, qualified nonprofit agencies
for the blind or other severely handicapped shall be afforded the
maximum practicable opportunity to participate as subcontractors
and suppliers in the performance of contracts let by the Department
of Defense.
(b) During the current fiscal year, a business concern which
has negotiated with a military service or defense agency a subcontracting plan for the participation by small business concerns
pursuant to section 8(d) of the Small Business Act (15 U.S.C.
637(d)) shall be given credit toward meeting that subcontracting
goal for any purchases made from qualified nonprofit agencies for
the blind or other severely handicapped.
(c) For the purpose of this section, the phrase ‘‘qualified nonprofit agency for the blind or other severely handicapped’’ means
a nonprofit agency for the blind or other severely handicapped
that has been approved by the Committee for the Purchase from
the Blind and Other Severely Handicapped under the Javits-Wagner-O’Day Act (41 U.S.C. 46–48).
SEC. 8034. During the current fiscal year, net receipts pursuant
to collections from third party payers pursuant to section 1095
of title 10, United States Code, shall be made available to the
local facility of the uniformed services responsible for the collections
and shall be over and above the facility’s direct budget amount.
SEC. 8035. During the current fiscal year, the Department
of Defense is authorized to incur obligations of not to exceed
$350,000,000 for purposes specified in section 2350j(c) of title 10,
United States Code, in anticipation of receipt of contributions, only
from the Government of Kuwait, under that section: Provided,
That, upon receipt, such contributions from the Government of
Kuwait shall be credited to the appropriation or fund which incurred
such obligations.
SEC. 8036. Of the funds made available in this Act, not less
than $23,626,000 shall be available for the Civil Air Patrol, of
which $19,926,000 shall be available for Operation and maintenance.
SEC. 8037. (a) None of the funds appropriated in this Act
are available to establish a new Department of Defense (department) federally funded research and development center (FFRDC),
either as a new entity, or as a separate entity administered by
an organization managing another FFRDC, or as a nonprofit membership corporation consisting of a consortium of other FFRDCs
and other non-profit entities.
(b) LIMITATION ON COMPENSATION.—No member of a Board
of Directors, Trustees, Overseers, Advisory Group, Special Issues
Panel, Visiting Committee, or any similar entity of a defense
FFRDC, and no paid consultant to any defense FFRDC, may be
compensated for his or her services as a member of such entity,
or as a paid consultant, except under the same conditions, and
to the same extent, as members of the Defense Science Board:
Provided, That a member of any such entity referred to previously
in this subsection shall be allowed travel expenses and per diem
as authorized under the Federal Joint Travel Regulations, when
engaged in the performance of membership duties.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–96

(c) Notwithstanding any other provision of law, none of the
funds available to the department from any source during fiscal
year 1997 may be used by a defense FFRDC, through a fee or
other payment mechanism, for charitable contributions, for
construction of new buildings, for payment of cost sharing for
projects funded by government grants, or for absorption of contract
overruns.
(d) Notwithstanding any other provision of law, of the funds
available to the department during fiscal year 1997, not more
than 5,975 staff years of technical effort (staff years) may be funded
for defense FFRDCs: Provided, That of the specific amount referred
to previously in this subsection, not more than 1,088 staff years
may be funded for the defense studies and analysis FFRDCs.
(e) Notwithstanding any other provision of law, the Secretary
of Defense shall control the total number of staff years to be
performed by defense FFRDCs during fiscal year 1997 so as to
reduce the total amounts appropriated in titles II, III, and IV
of this Act by $52,286,000: Provided, That the total amounts appropriated in titles II, III, and IV of this Act are hereby reduced
by $52,286,000 to reflect savings from the use of defense FFRDCs
by the department.
(f) Within 60 days after enactment of this Act, the Secretary
of Defense shall submit to the Congressional defense committees
a report presenting the specific amounts of staff years of technical
effort to be allocated by the department for each defense FFRDC
during fiscal year 1997: Provided, That, after the submission of
the report required by this subsection, the department may not
reallocate more than five percent of an FFRDC’s staff years among
other defense FFRDCs until 30 days after a detailed justification
for any such reallocation is submitted to the Congressional defense
committees.
(g) The Secretary of Defense shall, with the submission of
the department’s fiscal year 1998 budget request, submit a report
presenting the specific amounts of staff years of technical effort
to be allocated for each defense FFRDC during that fiscal year.
(h) The total amounts appropriated to or for the use of the
department in titles II, III, and IV of this Act are hereby further
reduced by $102,286,000 to reflect savings from the decreased use
of non-FFRDC consulting services by the department.
(i) No part of the reductions contained in subsections (e) and
(h) of this section may be applied against any budget activity,
activity group, subactivity group, line item, program element, program, project, subproject or activity which does not fund defense
FFRDC activities or non-FFRDC consulting services within each
appropriation account.
(j) Not later than 90 days after enactment of this Act, the
Secretary of Defense shall submit to the congressional defense
committees a report listing the specific funding reductions allocated
to each category listed in subsection (i) above pursuant to this
section.
SEC. 8038. None of the funds in this or any other Act shall
be available for the preparation of studies on—
(a) the feasibility of removal and transportation of unitary
chemical weapons or agents from the eight chemical storage
sites within the continental United States to Johnston Atoll:
Provided, That this prohibition shall not apply to General

110 STAT. 3009–97

41 USC 10b–2.

PUBLIC LAW 104–208—SEPT. 30, 1996

Accounting Office studies requested by a Member of Congress
or a Congressional Committee; and
(b) the potential future uses of the nine chemical disposal
facilities other than for the destruction of stockpile chemical
munitions and as limited by section 1412(c)(2), Public Law
99–145: Provided, That this prohibition does not apply to future
use studies for the CAMDS facility at Tooele, Utah.
SEC. 8039. None of the funds appropriated or made available
in this Act shall be used to procure carbon, alloy or armor steel
plate for use in any Government-owned facility or property under
the control of the Department of Defense which were not melted
and rolled in the United States or Canada: Provided, That these
procurement restrictions shall apply to any and all Federal Supply
Class 9515, American Society of Testing and Materials (ASTM)
or American Iron and Steel Institute (AISI) specifications of carbon,
alloy or armor steel plate: Provided further, That the Secretary
of the military department responsible for the procurement may
waive this restriction on a case-by-case basis by certifying in writing
to the Committees on Appropriations of the House of Representatives and the Senate that adequate domestic supplies are not available to meet Department of Defense requirements on a timely
basis and that such an acquisition must be made in order to
acquire capability for national security purposes: Provided further,
That these restrictions shall not apply to contracts which are in
being as of the date of enactment of this Act.
SEC. 8040. For the purposes of this Act, the term ‘‘congressional
defense committees’’ means the National Security Committee of
the House of Representatives, the Armed Services Committee of
the Senate, the subcommittee on Defense of the Committee on
Appropriations of the Senate, and the subcommittee on National
Security of the Committee on Appropriations of the House of Representatives.
SEC. 8041. During the current fiscal year, the Department
of Defense may acquire the modification, depot maintenance and
repair of aircraft, vehicles and vessels as well as the production
of components and other Defense-related articles, through competition between Department of Defense depot maintenance activities
and private firms: Provided, That the Senior Acquisition Executive
of the military department or defense agency concerned, with power
of delegation, shall certify that successful bids include comparable
estimates of all direct and indirect costs for both public and private
bids: Provided further, That Office of Management and Budget
Circular A–76 shall not apply to competitions conducted under
this section.
SEC. 8042. (a)(1) If the Secretary of Defense, after consultation
with the United States Trade Representative, determines that a
foreign country which is party to an agreement described in paragraph (2) has violated the terms of the agreement by discriminating
against certain types of products produced in the United States
that are covered by the agreement, the Secretary of Defense shall
rescind the Secretary’s blanket waiver of the Buy American Act
with respect to such types of products produced in that foreign
country.
(2) An agreement referred to in paragraph (1) is any reciprocal
defense procurement memorandum of understanding, between the
United States and a foreign country pursuant to which the Secretary

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–98

of Defense has prospectively waived the Buy American Act for
certain products in that country.
(b) The Secretary of Defense shall submit to Congress a report
on the amount of Department of Defense purchases from foreign
entities in fiscal year 1997. Such report shall separately indicate
the dollar value of items for which the Buy American Act was
waived pursuant to any agreement described in subsection (a)(2),
the Trade Agreement Act of 1979 (19 U.S.C. 2501 et seq.), or
any international agreement to which the United States is a party.
(c) For purposes of this section, the term ‘‘Buy American Act’’
means title III of the Act entitled ‘‘An Act making appropriations
for the Treasury and Post Office Departments for the fiscal year
ending June 30, 1934, and for other purposes’’, approved March
3, 1933 (41 U.S.C. 10a et seq.).
SEC. 8043. Appropriations contained in this Act that remain
available at the end of the current fiscal year as a result of energy
cost savings realized by the Department of Defense shall remain
available for obligation for the next fiscal year to the extent, and
for the purposes, provided in section 2865 of title 10, United States
Code.
SEC. 8044. During the current fiscal year and hereafter, voluntary separation incentives payable under 10 U.S.C. 1175 may
be paid in such amounts as are necessary from the assets of the
Voluntary Separation Incentive Fund established by section
1175(h)(1).

10 USC 1175
note.

(INCLUDING TRANSFER OF FUNDS)

SEC. 8045. Amounts deposited during the current fiscal year
to the special account established under 40 U.S.C. 485(h)(2) and
to the special account established under 10 U.S.C. 2667(d)(1) are
appropriated and shall be available until transferred by the Secretary of Defense to current applicable appropriations or funds
of the Department of Defense under the terms and conditions
specified by 40 U.S.C. 485(h)(2) (A) and (B) and 10 U.S.C.
2667(d)(1)(B), to be merged with and to be available for the same
time period and the same purposes as the appropriation to which
transferred.
SEC. 8046. During the current fiscal year, appropriations available to the Department of Defense may be used to reimburse
a member of a reserve component of the Armed Forces who is
not otherwise entitled to travel and transportation allowances and
who occupies transient government housing while performing active
duty for training or inactive duty training: Provided, That such
members may be provided lodging in kind if transient government
quarters are unavailable as if the member was entitled to such
allowances under subsection (a) of section 404 of title 37, United
States Code: Provided further, That if lodging in kind is provided,
any authorized service charge or cost of such lodging may be paid
directly from funds appropriated for operation and maintenance
of the reserve component of the member concerned.
SEC. 8047. The President shall include with each budget for
a fiscal year submitted to the Congress under section 1105 of
title 31, United States Code, materials that shall identify clearly
and separately the amounts requested in the budget for appropriation for that fiscal year for salaries and expenses related to administrative activities of the Department of Defense, the military departments, and the Defense Agencies.

10 USC 221 note.

110 STAT. 3009–99

10 USC 1268
note.

10 USC 1293
note.

PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 8048. Notwithstanding any other provision of law, funds
available for ‘‘Drug Interdiction and Counter-Drug Activities,
Defense’’ may be obligated for the Young Marines program.
SEC. 8049. During the current fiscal year, amounts contained
in the Department of Defense Overseas Military Facility Investment
Recovery Account established by section 2921(c)(1) of the National
Defense Authorization Act of 1991 (Public Law 101–510; 10 U.S.C.
2687 note) shall be available until expended for the payments
specified by section 2921(c)(2) of that Act.
SEC. 8050. During the current fiscal year and hereafter, annual
payments granted under the provisions of section 4416 of the
National Defense Authorization Act for Fiscal Year 1993 (Public
Law 102–484; 106 Stat. 2714) shall be made from appropriations
in this Act which are available for the pay of reserve component
personnel.
SEC. 8051. Of the funds appropriated or otherwise made available by this Act, not more than $119,200,000 shall be available
for payment of the operating costs of NATO Headquarters: Provided,
That the Secretary of Defense may waive this section for Department of Defense support provided to NATO forces in and around
the former Yugoslavia.
SEC. 8052. During the current fiscal year, appropriations which
are available to the Department of Defense for operation and
maintenance may be used to purchase items having an investment
item unit cost of not more than $100,000.
SEC. 8053. During the current fiscal year and hereafter, appropriations available for the pay and allowances of active duty members of the Armed Forces shall be available to pay the retired
pay which is payable pursuant to section 4403 of Public Law 102–
484 (10 U.S.C. 1293 note) under the terms and conditions provided
in section 4403.
SEC. 8054. (a) During the current fiscal year, none of the
appropriations or funds available to the Defense Business Operations Fund shall be used for the purchase of an investment item
for the purpose of acquiring a new inventory item for sale or
anticipated sale during the current fiscal year or a subsequent
fiscal year to customers of the Defense Business Operations Fund
if such an item would not have been chargeable to the Defense
Business Operations Fund during fiscal year 1994 and if the purchase of such an investment item would be chargeable during
the current fiscal year to appropriations made to the Department
of Defense for procurement.
(b) The fiscal year 1998 budget request for the Department
of Defense as well as all justification material and other documentation supporting the fiscal year 1998 Department of Defense budget
shall be prepared and submitted to the Congress on the basis
that any equipment which was classified as an end item and funded
in a procurement appropriation contained in this Act shall be budgeted for in a proposed fiscal year 1998 procurement appropriation
and not in the supply management business area or any other
area or category of the Defense Business Operations Fund.
SEC. 8055. None of the funds provided in this Act shall be
available for use by a Military Department to modify an aircraft,
weapon, ship or other item of equipment, that the Military Department concerned plans to retire or otherwise dispose of within five
years after completion of the modification: Provided, That this
prohibition shall not apply to safety modifications: Provided further,

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–100

That this prohibition may be waived by the Secretary of a Military
Department if the Secretary determines it is in the best national
security interest of the United States to provide such waiver and
so notifies the congressional defense committees in writing.
SEC. 8056. None of the funds appropriated by this Act for
programs of the Central Intelligence Agency shall remain available
for obligation beyond the current fiscal year, except for funds appropriated for the Reserve for Contingencies, which shall remain available until September 30, 1998.
SEC. 8057. Notwithstanding any other provision of law, funds
made available in this Act for the Defense Intelligence Agency
may be used for the design, development, and deployment of General Defense Intelligence Program intelligence communications and
intelligence information systems for the Services, the Unified and
Specified Commands, and the component commands.
SEC. 8058. (a) Notwithstanding any other provision of law,
funds appropriated in this Act for the High Performance Computing
Modernization Program shall be made available only for the acquisition, modernization and sustainment of supercomputing capability
and capacity at Department of Defense (DoD) science and technology
sites under the cognizance of the Director of Defense Research
and Engineering and DoD test and evaluation facilities under the
Director of Test and Evaluation, OUSD (A&T): Provided, That
these funds shall be awarded based on user-defined requirements.
(b) Of the funds appropriated in this Act under the heading
‘‘Procurement, Defense-Wide’’, $124,735,000 shall be made available
for the High Performance Computing Modernization Program. Of
the total funds made available for the program pursuant to this
subsection, $20,000,000 shall be for the Army High Performance
Computing Research Center.
SEC. 8059. Of the funds appropriated by the Department of
Defense under the heading ‘‘Operation and Maintenance, DefenseWide’’, not less than $8,000,000 shall be made available only for
the mitigation of environmental impacts, including training and
technical assistance to tribes, related administrative support, the
gathering of information, documenting of environmental damage,
and developing a system for prioritization of mitigation, on Indian
lands resulting from Department of Defense activities.
SEC. 8060. Amounts collected for the use of the facilities of
the National Science Center for Communications and Electronics
during the current fiscal year pursuant to section 1459(g) of the
Department of Defense Authorization Act, 1986 and deposited to
the special account established under subsection 1459(g)(2) of that
Act are appropriated and shall be available until expended for
the operation and maintenance of the Center as provided for in
subsection 1459(g)(2).
SEC. 8061. None of the funds appropriated in this Act may
be used to fill the commander’s position at any military medical
facility with a health care professional unless the prospective candidate can demonstrate professional administrative skills.
SEC. 8062. (a) None of the funds appropriated in this Act
may be expended by an entity of the Department of Defense unless
the entity, in expending the funds, complies with Buy American
Act. For purposes of this subsection, the term ‘‘Buy American Act’’
means title III of the Act entitled ‘‘An Act making appropriations
for the Treasury and Post Office Departments for the fiscal year

110 STAT. 3009–101

50 USC 1521
note.

PUBLIC LAW 104–208—SEPT. 30, 1996

ending June 30, 1934, and for other purposes’’, approved March
3, 1933 (41 U.S.C. 10a et seq.).
(b) If the Secretary of Defense determines that a person has
been convicted of intentionally affixing a label bearing a ‘‘Made
in America’’ inscription to any product sold in or shipped to the
United States that is not made in America, the Secretary shall
determine, in accordance with section 2410f of title 10, United
States Code, whether the person should be debarred from contracting with the Department of Defense.
(c) In the case of any equipment or products purchased with
appropriations provided under this Act, it is the sense of the Congress that any entity of the Department of Defense, in expending
the appropriation, purchase only American-made equipment and
products, provided that American-made equipment and products
are cost-competitive, quality-competitive, and available in a timely
fashion.
SEC. 8063. None of the funds appropriated by this Act shall
be available for a contract for studies, analyses, or consulting services entered into without competition on the basis of an unsolicited
proposal unless the head of the activity responsible for the procurement determines—
(1) as a result of thorough technical evaluation, only one
source is found fully qualified to perform the proposed work,
or
(2) the purpose of the contract is to explore an unsolicited
proposal which offers significant scientific or technological
promise, represents the product of original thinking, and was
submitted in confidence by one source, or
(3) the purpose of the contract is to take advantage of
unique and significant industrial accomplishment by a specific
concern, or to insure that a new product or idea of a specific
concern is given financial support:
Provided, That this limitation shall not apply to contracts in an
amount of less than $25,000, contracts related to improvements
of equipment that is in development or production, or contracts
as to which a civilian official of the Department of Defense, who
has been confirmed by the Senate, determines that the award
of such contract is in the interest of the national defense.
SEC. 8064. Funds appropriated by this Act for intelligence
activities are deemed to be specifically authorized by the Congress
for purposes of section 504 of the National Security Act of 1947
(50 U.S.C. 414).
SEC. 8065. Notwithstanding section 142 of H.R. 3230, the
National Defense Authorization Act for Fiscal Year 1997, as passed
by the Senate on September 10, 1996, of the funds provided in
title VI of this Act, under the heading ‘‘Chemical Agents and Munitions Destruction, Defense’’, $40,000,000 shall only be available
for the conduct of a pilot program to identify and demonstrate
not less than two alternatives to the baseline incineration process
for the demilitarization of assembled chemical munitions: Provided,
That the Under Secretary of Defense for Acquisition and Technology
shall, not later than December 1, 1996, designate a program manager who is not, nor has been, in direct or immediate control
of the baseline reverse assembly incineration demilitarization program to carry out the pilot program: Provided further, That the
Under Secretary of Defense for Acquisition and Technology shall
evaluate the effectiveness of each alternative chemical munitions

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–102

demilitarization technology identified and demonstrated under the
pilot program to demilitarize munitions and assembled chemical
munitions while meeting all applicable Federal and State environmental and safety requirements: Provided further, That the Under
Secretary of Defense for Acquisition and Technology shall transmit,
by December 15 of each year, a report to the congressional defense
committees on the activities carried out under the pilot program
during the preceding fiscal year in which the report is to be made:
Provided further, That section 142(f)(3) of H.R. 3230, the National
Defense Authorization Act for Fiscal Year 1997, as passed by the
Senate on September 10, 1996, is repealed: Provided further, That
no funds may be obligated for the construction of a baseline incineration facility at the Lexington Blue Grass Army Depot or the
Pueblo Depot activity until 180 days after the Secretary of Defense
has submitted to the congressional defense committees a report
detailing the effectiveness of each alternative chemical munitions
demilitarization technology identified and demonstrated under the
pilot program and its ability to meet the applicable safety and
environmental requirements: Provided further, That none of the
funds in this or any other Act may be obligated for the preparation
of studies, assessments, or planning of the removal and transportation of stockpile assembled unitary chemical weapons or neutralized chemical agent to any of the eight chemical weapons storage
sites within the continental United States.
SEC. 8066. (a) None of the funds made available by this Act
may be obligated for design, development, acquisition, or operation
of more than 47 Titan IV expendable launch vehicles, or for satellite
mission-model planning for a Titan IV requirement beyond 47
vehicles.
(b) $59,600,000 made available in this Act for Research, Development, Test and Evaluation, Air Force, may only be obligated
for development of a new family of medium-lift and heavy-lift
expendable launch vehicles evolved from existing technologies.
SEC. 8067. None of the funds available to the Department
of Defense in this Act may be used to establish additional field
operating agencies of any element of the Department during fiscal
year 1997, except for field operating agencies funded within the
National Foreign Intelligence Program: Provided, That the Secretary of Defense may waive this section by certifying to the House
and Senate Committees on Appropriations that the creation of
such field operating agencies will reduce either the personnel and/
or financial requirements of the Department of Defense.
SEC. 8068. Notwithstanding section 303 of Public Law 96–
487 or any other provision of law, the Secretary of the Navy is
authorized to lease real and personal property at Naval Air Facility,
Adak, Alaska, pursuant to 10 U.S.C. 2667(f), for commercial, industrial or other purposes.
SEC. 8069. Notwithstanding any other provision of law, for
resident classes entering the war colleges after September 30, 1997,
the Department of Defense shall require that not less than 20
percent of the total of United States military students at each
war college shall be from military departments other than the
hosting military department: Provided, That each military department will recognize the attendance at a sister military department
war college as the equivalent of attendance at its own war college
for promotion and advancement of personnel.

50 USC 1521
note.

10 USC note
prec. 2161.

110 STAT. 3009–103

PUBLIC LAW 104–208—SEPT. 30, 1996
(RESCISSIONS)

SEC. 8070. Of the funds provided in Department of Defense
Appropriations Acts, the following funds are hereby rescinded from
the following accounts in the specified amounts:
‘‘Procurement
of
Ammunition,
Army,
1995/1997’’,
$4,500,000;
‘‘Aircraft Procurement, Navy, 1995/1997’’, $8,000,000;
‘‘Procurement of Ammunition, Navy and Marine Corps,
1995/1997’’, $2,000,000;
‘‘Other Procurement, Navy, 1995/1997’’, $10,000,000;
‘‘Aircraft Procurement, Air Force, 1995/1997’’, $3,100,000;
‘‘Missile Procurement, Air Force, 1995/1997’’, $31,900,000;
‘‘Aircraft Procurement, Navy, 1996/1998’’, $5,400,000;
‘‘Procurement of Ammunition, Navy and Marine Corps,
1996/1998’’, $12,708,000;
‘‘Aircraft Procurement, Air Force, 1996/1998’’, $9,000,000;
‘‘Missile Procurement, Air Force, 1996/1998’’, $20,000,000;
‘‘Other Procurement, Air Force, 1996/1998’’, $26,000,000;
‘‘Research, Development, Test and Evaluation, Navy 1996/
1997’’, $4,500,000.
SEC. 8071. None of the funds provided in this Act may be
obligated for payment on new contracts on which allowable costs
charged to the government include payments for individual compensation at a rate in excess of $250,000 per year.
SEC. 8072. Of the funds appropriated in the Department of
Defense Appropriations Act, 1996 (Public Law 104–61), under the
heading ‘‘Other Procurement, Army’’, the Department of the Army
shall grant $477,000 to the Kansas Unified School District 207
for the purpose of integrating schools at Fort Leavenworth into
the existing fiber optic network on post.
SEC. 8073. None of the funds available in this Act may be
used to reduce the authorized positions for military (civilian) technicians of the Army National Guard, the Air National Guard, Army
Reserve and Air Force Reserve for the purpose of applying any
administratively imposed civilian personnel ceiling, freeze, or reduction on military (civilian) technicians, unless such reductions are
a direct result of a reduction in military force structure.
SEC. 8074. None of the funds appropriated or otherwise made
available in this Act may be obligated or expended for assistance
to the Democratic People’s Republic of North Korea unless specifically appropriated for that purpose.
SEC. 8075. During the current fiscal year, funds appropriated
in this Act are available to compensate members of the National
Guard for duty performed pursuant to a plan submitted by a Governor of a State and approved by the Secretary of Defense under
section 112 of title 32, United States Code: Provided, That during
the performance of such duty, the members of the National Guard
shall be under State command and control: Provided further, That
such duty shall be treated as full-time National Guard duty for
purposes of sections 12602 (a)(2) and (b)(2) of title 10, United
States Code.
SEC. 8076. Funds appropriated in this Act for operation and
maintenance of the Military Departments, Unified and Specified
Commands and Defense Agencies shall be available for reimbursement of pay, allowances and other expenses which would otherwise
be incurred against appropriations for the National Guard and

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–104

Reserve when members of the National Guard and Reserve provide
intelligence support to Unified Commands, Defense Agencies and
Joint Intelligence Activities, including the activities and programs
included within the General Defense Intelligence Program and the
Consolidated Cryptologic Program: Provided, That nothing in this
section authorizes deviation from established Reserve and National
Guard personnel and training procedures.
SEC. 8077. During the current fiscal year, none of the funds
appropriated in this Act may be used to reduce the civilian medical
and medical support personnel assigned to military treatment facilities below the September 30, 1996 level: Provided, That the Service
Surgeons General may waive this section by certifying to the
congressional defense committees that the beneficiary population
is declining in some catchment areas and civilian strength reductions may be consistent with responsible resource stewardship and
capitation-based budgeting.
SEC. 8078. All refunds or other amounts collected in the
administration of the Civilian Health and Medical Program of the
Uniformed Services (CHAMPUS) shall be credited to current year
appropriations.
(INCLUDING TRANSFER OF FUNDS)

SEC. 8079. None of the funds appropriated in this Act may
be transferred to or obligated from the Pentagon Reservation
Maintenance Revolving Fund, unless the Secretary of Defense certifies that the total cost for the planning, design, construction
and installation of equipment for the renovation of the Pentagon
Reservation will not exceed $1,118,000,000.
SEC. 8080. (a) None of the funds available to the Department
of Defense for any fiscal year for drug interdiction or counterdrug activities may be transferred to any other department or
agency of the United States except as specifically provided in an
appropriations law.
(b) None of the funds available to the Central Intelligence
Agency for any fiscal year for drug interdiction and counter-drug
activities may be transferred to any other department or agency
of the United States except as specifically provided in an appropriations law.
(TRANSFER OF FUNDS)

SEC. 8081. Appropriations available in this Act under the heading ‘‘Operation and Maintenance, Defense-Wide’’ for increasing
energy and water efficiency in Federal buildings may, during their
period of availability, be transferred to other appropriations or
funds of the Department of Defense for projects related to increasing
energy and water efficiency, to be merged with and to be available
for the same general purposes, and for the same time period,
as the appropriation or fund to which transferred.
SEC. 8082. None of the funds appropriated by this Act may
be used for the procurement of ball and roller bearings other than
those produced by a domestic source and of domestic origin: Provided, That the Secretary of the military department responsible
for such procurement may waive this restriction on a case-bycase basis by certifying in writing to the Committees on Appropriations of the House of Representatives and the Senate, that adequate
domestic supplies are not available to meet Department of Defense

10 USC 374 note.

50 USC 403f
note.

110 STAT. 3009–105

PUBLIC LAW 104–208—SEPT. 30, 1996

requirements on a timely basis and that such an acquisition must
be made in order to acquire capability for national security purposes.
SEC. 8083. Notwithstanding any other provision of law, funds
available to the Department of Defense shall be made available
to provide transportation of medical supplies and equipment, on
a nonreimbursable basis, to American Samoa: Provided, That notwithstanding any other provision of law, funds available to the
Department of Defense shall be made available to provide transportation of medical supplies and equipment, on a nonreimbursable
basis, to the Indian Health Service when it is in conjunction with
a civil-military project.
SEC. 8084. None of the funds in this Act may be used to
purchase any supercomputer which is not manufactured in the
United States, unless the Secretary of Defense certifies to the
congressional defense committees that such an acquisition must
be made in order to acquire capability for national security purposes
that is not available from United States manufacturers.
SEC. 8085. Notwithstanding any other provision of law, the
Naval shipyards of the United States shall be eligible to participate
in any manufacturing extension program financed by funds appropriated in this or any other Act.
SEC. 8086. None of the funds appropriated by this Act shall
be available to lease or charter a vessel in excess of seventeen
months (inclusive of any option periods) to transport fuel or oil
for the Department of Defense if the vessel was constructed after
October 1, 1995 unless the Secretary of Defense requires that
the vessel be constructed in the United States with a double hull
under the long-term lease or charter authority provided in section
2401 note of title 10, United States Code: Provided, That this
limitation shall not apply to contracts in force on the date of
enactment of this Act: Provided further, That by 1997 at least
20 percent of annual leases and charters must be for ships of
double hull design constructed after October 1, 1995 if available
in numbers sufficient to satisfy this requirement: Provided further,
That the Military Sealift Command shall plan to achieve the goal
of eliminating single hull ship leases by the year 2015.
(TRANSFER OF FUNDS)

SEC. 8087. In addition to amounts appropriated or otherwise
made available by this Act, $300,000,000 is hereby appropriated
to the Department of Defense and shall be available only for transfer
to the United States Coast Guard.
SEC. 8088. Notwithstanding any other provision in this Act,
the total amount appropriated in this Act is hereby reduced by
$150,000,000 to reflect savings from reduced carryover of activities
funded through the Defense Business Operations Fund, to be
distributed as follows: ‘‘Operation and Maintenance, Army’’,
$60,000,000; and ‘‘Operation and Maintenance, Navy’’, $90,000,000.
SEC. 8089. Notwithstanding any other provision of law, each
contract awarded by the Department of Defense during the current
fiscal year for construction or service performed in whole or in
part in a State which is not contiguous with another State and
has an unemployment rate in excess of the national average rate
of unemployment as determined by the Secretary of Labor, shall
include a provision requiring the contractor to employ, for the
purpose of performing that portion of the contract in such State

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–106

that is not contiguous with another State, individuals who are
residents of such State and who, in the case of any craft or trade,
possess or would be able to acquire promptly the necessary skills:
Provided, That the Secretary of Defense may waive the requirements of this section, on a case-by-case basis, in the interest of
national security.
SEC. 8090. During the current fiscal year, the Army shall
use the former George Air Force Base as the airhead for the
National Training Center at Fort Irwin: Provided, That none of
the funds in this Act shall be obligated or expended to transport
Army personnel into Edwards Air Force Base for training rotations
at the National Training Center.
SEC. 8091. (a) The Secretary of Defense shall submit, on a
quarterly basis, a report to the congressional defense committees,
the Committee on International Relations of the House of Representatives and the Committee on Foreign Relations of the Senate
setting forth all costs (including incremental costs) incurred by
the Department of Defense during the preceding quarter in
implementing or supporting resolutions of the United Nations Security Council, including any such resolution calling for international
sanctions, international peacekeeping operations, and humanitarian
missions undertaken by the Department of Defense. The quarterly
report shall include an aggregate of all such Department of Defense
costs by operation or mission.
(b) The Secretary of Defense shall detail in the quarterly reports
all efforts made to seek credit against past United Nations expenditures and all efforts made to seek compensation from the United
Nations for costs incurred by the Department of Defense in
implementing and supporting United Nations activities.
SEC. 8092 (a) LIMITATION ON TRANSFER OF DEFENSE ARTICLES
AND SERVICES.—Notwithstanding any other provision of law, none
of the funds available to the Department of Defense for the current
fiscal year may be obligated or expended to transfer to another
nation or an international organization any defense articles or
services (other than intelligence services) for use in the activities
described in subsection (b) unless the congressional defense committees, the Committee on International Relations of the House of
Representatives, and the Committee on Foreign Relations of the
Senate are notified 15 days in advance of such transfer.
(b) COVERED ACTIVITIES.—(1) This section applies to—
(A) any international peacekeeping or peace-enforcement
operation under the authority of chapter VI or chapter VII
of the United Nations Charter under the authority of a United
Nations Security Council resolution; and
(B) any other international peacekeeping, peace-enforcement, or humanitarian assistance operation.
(c) REQUIRED NOTICE.—A notice under subsection (a) shall
include the following:
(1) A description of the equipment, supplies, or services
to be transferred.
(2) A statement of the value of the equipment, supplies,
or services to be transferred.
(3) In the case of a proposed transfer of equipment or
supplies—
(A) a statement of whether the inventory requirements
of all elements of the Armed Forces (including the reserve

110 STAT. 3009–107

PUBLIC LAW 104–208—SEPT. 30, 1996

components) for the type of equipment or supplies to be
transferred have been met; and
(B) a statement of whether the items proposed to be
transferred will have to be replaced and, if so, how the
President proposes to provide funds for such replacement.
SEC. 8093. To the extent authorized by subchapter VI of Chapter 148 of title 10, United States Code, the Secretary of Defense
shall issue loan guarantees in support of U.S. defense exports
not otherwise provided for: Provided, That the total contingent
liability of the United States for guarantees issued under the
authority of this section may not exceed $15,000,000,000: Provided
further, That the exposure fees charged and collected by the Secretary for each guarantee, shall be paid by the country involved
and shall not be financed as part of a loan guaranteed by the
United States: Provided further, That the Secretary shall provide
quarterly reports to the Committees on Appropriations, Armed Services and Foreign Relations of the Senate and the Committees on
Appropriations, National Security and International Relations in
the House of Representatives on the implementation of this program: Provided further, That amounts charged for administrative
fees and deposited to the special account provided for under section
2540c(d) of title 10, shall be available for paying the costs of
administrative expenses of the Department of Defense that are
attributable to the loan guarantee program under subchapter VI
of Chapter 148 of title 10.
SEC. 8094. None of the funds available to the Department
of Defense shall be obligated or expended to make a financial
contribution to the United Nations for the cost of an United Nations
peacekeeping activity (whether pursuant to assessment or a voluntary contribution) or for payment of any United States arrearage
to the United Nations.
SEC. 8095. None of the funds available to the Department
of Defense under this Act shall be obligated or expended to pay
a contractor under a contract with the Department of Defense
for costs of any amount paid by the contractor to an employee
when—
(1) such costs are for a bonus or otherwise in excess of
the normal salary paid by the contractor to the employee;
and
(2) such bonus is part of restructuring costs associated
with a business combination.
SEC. 8096. The amount otherwise provided by this Act for
‘‘Operation and Maintenance, Air Force’’ is hereby reduced by
$194,500,000, to reflect a reduction in the pass-through to the
Air Force business areas of the Defense Business Operations Fund.
SEC. 8097. (a) None of the funds appropriated or otherwise
made available in this Act may be used to transport or provide
for the transportation of chemical munitions or agents to the Johnston Atoll for the purpose of storing or demilitarizing such munitions or agents.
(b) The prohibition in subsection (a) shall not apply to any
obsolete World War II chemical munition or agent of the United
States found in the World War II Pacific Theater of Operations.
(c) The President may suspend the application of subsection
(a) during a period of war in which the United States is a party.
SEC. 8098. None of the funds provided in title II of this Act
for ‘‘Former Soviet Union Threat Reduction’’ may be obligated or

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–108

expended to finance housing for any individual who was a member
of the military forces of the Soviet Union or for any individual
who is or was a member of the military forces of the Russian
Federation.
SEC. 8099. During the current fiscal year, no more than
$15,000,000 of appropriations made in this Act under the heading
‘‘Operation and Maintenance, Defense-Wide’’ may be transferred
to appropriations available for the pay of military personnel, to
be merged with, and to be available for the same time period
as the appropriations to which transferred, to be used in support
of such personnel in connection with support and services for eligible
organizations and activities outside the Department of Defense
pursuant to section 2012 of title 10, United States Code.
SEC. 8100. Beginning in fiscal year 1997 and thereafter, and
notwithstanding any other provision of law, fixed and mobile telecommunications support shall be provided by the White House
Communications Agency (WHCA) to the United States Secret Service (USSS), without reimbursement, in connection with the Secret
Service’s duties directly related to the protection of the President
or the Vice President or other officer immediately next in order
of succession to the office of the President at the White House
Security Complex in the Washington, D.C. Metropolitan Area and
Camp David, Maryland. For these purposes, the White House Security Complex includes the White House, the White House grounds,
the Old Executive Office Building, the New Executive Office Building, the Blair House, the Treasury Building, and the Vice President’s Residence at the Naval Observatory.
SEC. 8101. None of the funds provided in this Act may be
obligated or expended for the sale of zinc in the National Defense
Stockpile if zinc commodity prices decline more than five percent
below the London Metals Exchange market price reported on the
date of enactment of this Act.
SEC. 8102. For purposes of section 1553(b) of title 31, United
States Code, any subdivision of appropriations made in this Act
under the heading ‘‘Shipbuilding and Conversion, Navy’’ shall be
considered to be for the same purpose as any subdivision under
the heading ‘‘Shipbuilding and Conversion, Navy’’ appropriations
in any prior year, and the one percent limitation shall apply to
the total amount of the appropriation.
SEC. 8103. During the current fiscal year, and notwithstanding
31 U.S.C. 1552(a), not more than $107,000,000 appropriated under
the heading ‘‘Aircraft Procurement, Air Force’’ in Public Law 101–
511 and not more than $15,000,000 appropriated under the heading
‘‘Aircraft Procurement, Air Force’’ in Public Law 102–172 which
were available and obligated for the B–2 Aircraft Program shall
remain available for expenditure and for adjusting obligations for
such Program until September 30, 2002.
SEC. 8104. During the current fiscal year, in the case of an
appropriation account of the Department of Defense for which the
period of availability for obligation has expired or which has closed
under the provisions of section 1552 of title 31, United States
Code, and which has a negative unliquidated or unexpended balance, an obligation or an adjustment of an obligation may be
charged to any current appropriation account for the same purpose
as the expired or closed account if—

18 USC 3056
note.

110 STAT. 3009–109

PUBLIC LAW 104–208—SEPT. 30, 1996

(1) the obligation would have been properly chargeable
(except as to amount) to the expired or closed account before
the end of the period of availability or closing of that account;
(2) the obligation is not otherwise properly chargeable to
any current appropriation account of the Department of
Defense; and
(3) in the case of an expired account, the obligation is
not chargeable to a current appropriation of the Department
of Defense under the provisions of section 1405(b)(8) of the
National Defense Authorization Act for Fiscal Year 1991, Public
Law 101–510, as amended (31 U.S.C. 1551 note): Provided,
That in the case of an expired account, if subsequent review
or investigation discloses that there was not in fact a negative
unliquidated or unexpended balance in the account, any charge
to a current account under the authority of this section shall
be reversed and recorded against the expired account: Provided
further, That the total amount charged to a current appropriation under this section may not exceed an amount equal to
one percent of the total appropriation for that account.
(TRANSFER OF FUNDS)

SEC. 8105. Upon enactment of this Act, the Secretary of Defense
shall make the following transfers of funds: Provided, That the
amounts transferred shall be available for the same purposes as
the appropriations to which transferred, and for the same time
period as the appropriation from which transferred: Provided further, That the amounts shall be transferred between the following
appropriations in the amount specified:
From:
Under the heading, ‘‘Shipbuilding and Conversion, Navy,
1985/1995’’:
CG–47 cruiser program, $4,300,000;
For craft, outfitting, and post delivery, $2,000,000;
To:
Under the heading, ‘‘Shipbuilding and Conversion, Navy,
1985/1995’’:
DDG–51 destroyer program, $6,300,000;
From:
Under the heading, ‘‘Shipbuilding and Conversion, Navy,
1986/1996’’:
LHD–1 amphibious assault ship program, $2,154,000;
To:
Under the heading, ‘‘Shipbuilding and Conversion, Navy,
1986/1996’’:
For craft, outfitting and post delivery, $2,154,000;
From:
Under the heading, ‘‘Shipbuilding and Conversion, Navy,
1987/1996’’:
T–AO fleet oiler program, $1,095,000;
Oceanographic ship program, $735,000;
To:
Under the heading, ‘‘Shipbuilding and Conversion, Navy,
1987/1996’’:
For craft, outfitting, and post delivery, $1,830,000;
From:
Under the heading, ‘‘Shipbuilding and Conversion, Navy,
1989/2000’’:

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–110

T–AO fleet oiler program, $6,571,000;
To:
Under the heading, ‘‘Shipbuilding and Conversion, Navy,
1989/2000’’:
SSN–21 attack submarine program, $6,571,000;
From:
Under the heading, ‘‘Shipbuilding and Conversion, Navy,
1991/2001’’:
DDG–51 destroyer program, $12,687,000;
To:
Under the heading, ‘‘Shipbuilding and Conversion, Navy,
1991/2001’’:
LHD–1 amphibious assault ship program, $9,387,000;
MHC coastal mine hunter program, $3,300,000;
From:
Under the heading, ‘‘Shipbuilding and Conversion, Navy,
1992/1996’’:
For escalation, $1,600,000;
To:
Under the heading, ‘‘Shipbuilding and Conversion, Navy,
1992/1996’’:
MHC coastal mine hunter program, $1,600,000;
From:
Under the heading, ‘‘Shipbuilding and Conversion, Navy,
1993/1997’’:
DDG–51 destroyer program, $5,000,000;
LSD–41 cargo variant ship program, $2,700,000;
For craft, outfitting, post delivery, and first destination
transportation, and inflation adjustments, $1,577,000;
To:
Under the heading, ‘‘Shipbuilding and Conversion, Navy,
1993/1997’’:
AOE combat support ship program, $9,277,000;
From:
Under the heading, ‘‘Shipbuilding and Conversion, Navy,
1995/1999’’:
Carrier replacement program, $18,023,000;
To:
Under the heading, ‘‘Shipbuilding and Conversion, Navy,
1993/1997’’:
MHC coastal mine hunter program, $6,700,000;
AOE combat support ship program, $11,323,000;
From:
Under the heading, ‘‘Shipbuilding and Conversion, Navy,
1994/1998’’:
LHD–1 amphibious assault ship program, $4,100,000;
Mine warfare command and control ship, $1,000,000;
For craft, outfitting, post delivery, and first destination
transportation, $2,000,000;
From:
Under the heading, ‘‘Shipbuilding and Conversion, Navy,
1995/1999’’:
Carrier replacement program, $9,477,000;
From:
Under the heading, ‘‘Shipbuilding and Conversion, Navy,
1996/2000’’:
NSSN–1 (AP), $3,791,000;

110 STAT. 3009–111

PUBLIC LAW 104–208—SEPT. 30, 1996
DDG–51 destroyer program, $4,075,000;
CVN Refuelings, $5,212,000;
LHD–1 amphibious ship program, $16,800,000;
T–AGS–64 multi-purpose oceanographic survey ship,
$375,000;
For craft, outfitting, post delivery, conversions and first
destination transportation, $11,770,000;

To:

10 USC 113 note.

10 USC 2241
note.

Under the heading, ‘‘Shipbuilding and Conversion, Navy,
1994/1998’’:
DDG–51 destroyer program, $41,800,000; and
Under the heading, ‘‘Shipbuilding and Conversion, Navy,
1995/1999’’:
For craft, outfitting, post delivery, conversions and first
destination transportation, $16,800,000.
SEC. 8106. (a) The Secretary of Defense shall require not later
than June 30, 1997, each disbursement by the Department of
Defense in an amount in excess of $3,000,000 be matched to a
particular obligation before the disbursement is made.
(b) The Secretary shall ensure that a disbursement in excess
of the threshold amount applicable under section (a) is not divided
into multiple disbursements of less than that amount for the purpose of avoiding the applicability of such section to that disbursement.
SEC. 8107. Notwithstanding any other provision of law, the
Air Force shall not introduce any new supplier for the remaining
production units for the AN/ALE–47 Countermeasures Dispenser
System without conducting a full and open competition that will
include, but not be limited to, small businesses.
SEC. 8108. The Under Secretary of Defense (Comptroller) shall
submit to the congressional defense committees a detailed report
identifying, by amount and by separate budget activity, activity
group, subactivity group, line item, program element, program,
project, subproject, and activity, any activity for which the fiscal
year 1998 budget request was reduced because Congress appropriated funds above the President’s budget request for that specific
activity for fiscal year 1997.
SEC. 8109. In applying section 9005 of the Department of
Defense Appropriations Act, 1993, Public Law 102–396 (10 U.S.C.
2241 note), during the current fiscal year and thereafter—
(1) the term ‘‘synthetic fabric and coated synthetic fabric’’
shall be deemed to include all textile fibers and yarns that
are for use in such fabrics; and
(2) such section shall be treated, notwithstanding section
34 of Public Law 93–400 (41 U.S.C. 430), as being applicable
to contracts and subcontracts for the procurement of commercial
items that are articles or items, specialty metals, or tools covered by that section 9005.
SEC. 8110. Notwithstanding any other provision of law, including Section 2304(j) of title 10, United States Code, of the funds
appropriated under the heading ‘‘Aircraft Procurement, Navy’’ in
Public Law 104–61, $45,000,000 shall be made available only for
acquisition of T–39N aircraft, associated ground-based training system (GBTS), service life extension related components and parts,
associated equipment, and data that meet the Undergraduate Flight
Officer (UNFO) training requirements by procurement of the T–

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–112

39N aircraft currently being used by the Navy for UNFO training
under a services contract.
SEC. 8111. TRADEOFF STUDY OF CURRENT AND FUTURE DEEPSTRIKE CAPABILITIES.—
(1) The Secretary of Defense shall carry out the deepstrike tradeoff study announced by the President to study tradeoffs between bombers, land and sea-based tactical aircraft, and
missiles capable of striking targets in an enemy’s rear area.
(2) The Secretary of Defense shall establish an ad hoc
review committee under the auspices of the Defense Science
Board to establish the methodological approach to the tradeoff
study, to establish a broad range of stressing scenarios of
interest, and to review assumptions regarding the analyses
to be conducted.
(3) The ad hoc review committee to be established under
paragraph (2) shall include among its members analysts who
have performed or participated in bomber tradeoff analysis,
retired military personnel with broad experience in recent
conventional warfare operations, and experts on the logistics
of both initial deployment and sustaining support. These members shall be selected without regard for current service on
the Defense Science Board.
(4) After submitting its recommendations for the conduct
of the deep-strike tradeoff study to the Secretary of Defense,
the ad hoc review committee shall continue to meet regularly
to review preliminary results of the analysis and to recommend
additional variations in assumptions that may be required to
illuminate particular force tradeoff issues.
SEC. 8112. Notwithstanding 31 U.S.C. 1552(a), of the funds
provided in Department of Defense Appropriations Acts, not more
than the specified amounts of funds from the following accounts
shall remain available for the payment of satellite on-orbit incentive
fees until the fees are paid:
‘‘Missile Procurement, Air Force, 1990/1992’’, $17,800,000;
‘‘Missile Procurement, Air Force, 1991/1993’’, $19,330,000;
‘‘Missile Procurement, Air Force, 1992/1994’’, $23,570,000;
‘‘Missile Procurement, Air Force, 1993/1995’’, $16,780,000;
‘‘Missile Procurement, Air Force, 1994/1996’’, $16,780,000.
SEC. 8113. TACTICAL AIRCRAFT REQUIREMENT STUDY.—The Secretary of Defense and the Chairman of the Joint Chiefs of Staff
shall carry out a joint study under the direct supervision of the
Joint Requirements Oversight Council (JROC) assessing future tactical aircraft requirements across service jurisdictions. This study
shall determine the best and most affordable mix of weapon systems
to carry out different mission areas and shall include recommendations for changes to the planned numbers and types of tactical
aircraft to be developed and procured over the next ten years
if appropriate. Such report shall be submitted to the congressional
defense committees no later than March 30, 1997.
SEC. 8114. None of the funds available to the Department
of the Navy may be used to enter into any contract for the overhaul,
repair, or maintenance of any naval vessel homeported on the
West Coast of the United States which includes charges for interport
differential as an evaluation factor for award.
SEC. 8115. (a) None of the funds available to the Department
of Defense under this Act may be obligated or expended to
reimburse a defense contractor for restructuring costs associated

110 STAT. 3009–113

PUBLIC LAW 104–208—SEPT. 30, 1996

with a business combination of the defense contractor that occurs
after the date of enactment of this Act unless:
(1) the auditable savings for the Department of Defense
resulting from the restructuring will exceed the costs allowed
by a factor of at least two to one, or
(2) the savings for the Department of Defense resulting
from the restructuring will exceed the costs allowed and the
Secretary of Defense determines that the business combination
will result in the preservation of a critical capability that might
otherwise be lost to the Department, and
(3) the report required by Section 818(e) of Public Law
103–337 to be submitted to Congress in 1996 is submitted.
(b) Not later than April 1, 1997, the Comptroller General shall,
in consultation with the Inspector General of the Department of
Defense, the Secretary of Defense, and the Secretary of Labor,
submit to Congress a report which shall include the following:
(1) an analysis and breakdown of the restructuring costs
paid by or submitted to the Department of Defense to companies
involved in business combinations since 1993;
(2) an analysis of the specific costs associated with
workforce reductions;
(3) an analysis of the services provided to the workers
affected by business combinations;
(4) an analysis of the effectiveness of the restructuring
costs used to assist laid off workers in gaining employment;
(5) in accordance with section 818 of Public Law 103–
337, an analysis of the savings reached from the business
combination relative to the restructuring costs paid by the
Department of Defense.
(c) The report should set forth recommendations to make this
program more effective for workers affected by business combinations and more efficient in terms of the use of Federal dollars.
SEC. 8116. Notwithstanding any other provision of law, none
of the funds appropriated in this Act may be used to purchase,
install, replace, or otherwise repair any lock on a safe or security
container which protects information critical to national security
or any other classified materials and which has not been certified
as passing the security lock specifications contained in regulation
FF–L–2740 dated October 12, 1989, and has not passed all testing
criteria and procedures established through February 28, 1992:
Provided, That the Director of Central Intelligence may waive this
provision, on a case-by-case basis only, upon certification that the
above cited locks are not adequate for the protection of sensitive
intelligence information.
SEC. 8117. Section 8110 of Public Law 104–61 (109 Stat. 674)
is hereby repealed.
SEC. 8118. The Secretary of Defense, in conjunction with the
Secretary of Labor, shall take such steps as required to ensure
that those Department of Defense contractors and other entities
subject to section 4212(d) of title 38, United States Code are aware
of, and in compliance with, the requirements of that section regarding submission of an annual report to the Secretary of Labor
concerning employment of certain veterans: Provided, That the
Secretary of Defense shall ensure that those Department of Defense
contractors and other entities subject to section 4212(d) of title
38, United States Code which have contracts with the Department
of Defense are notified of the potential penalties associated with

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–114

failure to comply with these annual reporting requirements (including potential suspension or debarment from federal contracting):
Provided further, That within 180 days of enactment of this Act
the Secretary of Labor and the Secretary of Defense shall submit
a report to Congress which—
(1) using the most recent reporting data, details the number
of reports received from Department of Defense contractors
and the estimated number of Department of Defense contractors
which are not in compliance with these annual reporting
requirements;
(2) describes the steps taken by the Departments of Labor
and Defense in order to ensure compliance with section 4212(d)
of title 38, United States Code;
(3) describes any additional measures taken or planned
to be taken by the Departments of Labor and Defense to
improve compliance with section 4212(d) of title 38, United
States Code pursuant to this section; and
(4) any further recommendations regarding additional
action (including changes in existing law) which may be necessary to improve compliance with section 4212(d) of title 38,
United States Code.
SEC. 8119. Funds appropriated in title II of this Act for supervision and administration costs for facilities maintenance and
repair, minor construction, or design projects may be obligated
at the time the reimbursable order is accepted by the performing
activity: Provided, That for the purpose of this section, supervision
and administration costs includes all in-house Government cost.
SEC. 8120. (a) LIMITATION ON ADVANCE BILLING.—During fiscal
year 1997, advance billing for services provided or work performed
by the Defense Business Operations Fund activities of the Department of the Navy in excess of $1,000,000,000 is prohibited.
(b) REVISED RATES; ADDITIONAL SURCHARGES.—In conjunction
with the Under Secretary of Defense (Comptroller), the Secretary
of the Navy shall develop a plan to revise fiscal year 1997 customer
rates or establish additional surcharges so as to increase revenues
to the Defense Business Operations Fund by at least an additional
$500,000,000 in executing orders accepted during fiscal year 1997.
(c) TRANSFER AUTHORITY.—To the extent necessary to comply
with any rate increase or new surcharge on rates in fiscal year
1997 established under subsection (b), the Secretary of the Navy
shall transfer at least $500,000,000, from funds made available
under subsection (d), into customer accounts of the Navy used
to reimburse the Defense Business Operations Fund so as to provide
customers with sufficient resources to pay the increased customer
rates and additional surcharges. The transfer authority provided
by this subsection is in addition to other transfer authority provided
in this Act. The funds transferred shall be merged with and available for the same purposes, and for the same time period, as
the appropriation to which transferred.
(d) SOURCE OF FUNDS.—To provide funds for transfer under
subsection (c), the amounts appropriated elsewhere in this Act
for the following appropriation accounts are reduced by 2.0 percent:
Aircraft Procurement, Navy; Weapons Procurement, Navy; Procurement of Ammunition, Navy and Marine Corps; Shipbuilding and
Conversion, Navy; Other Procurement, Navy; and Research, Development, Test and Evaluation, Navy. These reductions shall be
applied on a pro-rata basis to each line item, program element,

110 STAT. 3009–115

PUBLIC LAW 104–208—SEPT. 30, 1996

program, project, subproject, and activity within each appropriation
account.
SEC. 8121. The Secretary of Defense may waive reimbursement
of the cost of conferences, seminars, courses of instruction, or similar
educational activities of the Asia-Pacific Center for Security Studies
for military officers and civilian officials of foreign nations if the
Secretary determines that attendance by such personnel, without
reimbursement, is in the national security interest of the United
States: Provided, That costs for which reimbursement is waived
pursuant to this subsection shall be paid from appropriations available for the Asia-Pacific Center.
SEC. 8122. (a) Of the amounts appropriated or otherwise made
available by this Act for the Department of the Air Force, $2,000,000
shall be available only for a facility at Lackland Air Force Base,
Texas to provide comprehensive care and rehabilitation services
to children with disabilities who are dependents of members of
the Armed Forces.
(b) Subject to subsection (c), the Secretary of the Air Force
shall grant the funds made available under subsection (a) to the
Children’s Association for Maximum Potential (CAMP) for use by
the association to defray the costs of designing and constructing
the facility referred to in subsection (a).
(c)(1) The Secretary may not make a grant of funds under
subsection (b) until the Secretary and the association enter into
an agreement under which the Secretary leases to the association
the facility to be constructed using the funds.
(2) The term of the lease under subsection (c)(1) may not
be less than 25 years.
(3) The Secretary may require such additional terms and conditions in connection with the lease as the Secretary considers appropriate to protect the interests of the United States.
SEC. 8123. None of the funds appropriated by this Act may
be obligated or expended—
(1) to reduce the number of units of special operations
forces of the Army National Guard during fiscal year 1997;
(2) to reduce the authorized strength of any such unit
below the strength authorized for the unit as of September
30, 1996; or
(3) to apply any administratively imposed limitation on
the assigned strength of any such unit at less than the strength
authorized for that unit as of September 30, 1996.
SEC. 8124. (a) The Secretary of the Army shall ensure that
solicitations for contracts for unrestricted procurement to be entered
into using funds appropriated for the Army by this Act include,
where appropriate, specific goals for subcontracts with small
businesses, small disadvantaged businesses, and women owned
small businesses.
(b) The Secretary shall ensure that any subcontract entered
into pursuant to a solicitation referred to in subsection (a) that
meets a specific goal referred to in that subsection is credited
toward the overall goal of the Army for subcontracts with the
businesses referred to in that subsection.
SEC. 8125. (a) The Secretary of the Air Force and the Director
of the Office of Personnel Management shall submit a joint report
describing in detail the benefits, allowances, services, and any other
forms of assistance which may or shall be provided to any civilian
employee of the Federal Government or to any private citizen,

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–116

or to the family of such an individual, who is injured or killed
while traveling on an aircraft owned, leased, chartered, or operated
by the Government of the United States.
(b) The report required by subsection (a) above shall be submitted to the congressional defense committees and to the Committee
on Governmental Affairs of the Senate and the Committee on
Government Reform and Oversight of the House of Representatives
not later than December 15, 1996.
SEC. 8126. (a) Not later than March 1, 1997, the Deputy Secretary of Defense shall submit to the congressional defense committees a report on Department of Defense procurements of propellant
raw materials.
(b) The report shall include the following:
(1) The projected future requirements of the Department
of Defense for propellant raw materials, such as nitrocellulose.
(2) The capacity, ability, and production cost rates of the
national technology and industrial base, including Governmentowned, contractor-operated facilities, contractor-owned and
operated facilities, and Government-owned, Government-operated facilities, for meeting such requirements.
(3) The national security benefits of preserving in the
national technology and industrial base contractor-owned and
operated facilities for producing propellant raw materials,
including nitrocellulose.
(4) The extent to which the cost rates for production of
nitrocellulose in Government-owned, contractor-operated facilities is lower because of the relationship of those facilities with
the Department of Defense than such rates would be without
that relationship.
(5) The advantages and disadvantages of permitting
commercial facilities to compete for award of Department of
Defense contracts for procurement of propellant raw materials,
such as nitrocellulose.
SEC. 8127. Not later than six months after the date of the
enactment of this Act, the Secretary of the Air Force shall submit
to Congress a cost-benefit analysis of consolidating the ground
station infrastructure of the Air Force that supports polar orbiting
satellites.
(INCLUDING TRANSFER OF FUNDS)

SEC. 8128. In addition to the amounts appropriated elsewhere
in this Act, $100,000,000 is appropriated for defense against weapons of mass destruction: Provided, That the funds appropriated
under this section may be transferred to and merged with funds
appropriated elsewhere in this Act and that this transfer authority
shall be in addition to any other transfer authority provided under
this Act: Provided further, That of the funds made available by
this section, $10,000,000 shall be transferred to and merged with
funds appropriated in this Act for ‘‘Procurement, Marine Corps’’
and shall be available only for the procurement of equipment that
enhances the capability of the Chemical-Biological Incident
Response Force to respond to incidents of terrorism.
SEC. 8129. The Secretary of Defense, in consultation with the
Secretary of Health and Human Services and the Director of the
Office of Personnel Management, shall submit a report to the
congressional defense committees by February 1, 1997 containing
recommendations regarding the establishment of a demonstration

110 STAT. 3009–117

10 USC 1073
note.

10 USC 1073
note.

PUBLIC LAW 104–208—SEPT. 30, 1996

program under which covered beneficiaries under chapter 55 of
title 10, United States Code, who are entitled to benefits under
part A of the medicare program and who do not have access to
TRICARE, would be permitted to enroll in a health benefits program
offered through the Federal Employee Health Benefits Program
under chapter 89 of title 5, United States Code.
SEC. 8130. (a) Section 203 of H.R. 3230, the National Defense
Authorization Act for Fiscal Year 1997, as passed by the Senate
on September 10, 1996, is hereby amended by repealing section
203(a), section 203(c), and section 203(e).
(b) The amendments made by subsection (a) shall take effect
as of the date of the enactment of the National Defense Authorization Act for Fiscal Year 1997 as if section 203 of such Act had
been enacted as so amended.
SEC. 8131. (a) Section 722(c) of the National Defense Authorization Act for Fiscal Year 1997 is amended—
(1) by striking out paragraph (2);
(2) by striking out ‘‘(1)’’; and
(3) by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively.
(b) The amendments made by subsection (a) shall take effect
as of the date of the enactment of the National Defense Authorization Act for Fiscal Year 1997 as if section 722 of such Act had
been enacted as so amended.
SEC. 8132. The Secretary of Defense shall complete a cost/
benefit analysis on the establishment of a National Missile Defense
Joint Program Office: Provided, That the Secretary of Defense shall
submit a report on this analysis to the congressional defense
committees no later than March 31, 1997: Provided further, That
the Department of Defense shall take no action to establish any
National Missile Defense Joint Program Office, to reassign service
National Missile Defense roles and missions under any National
Missile Defense Joint Program Office strategy or to relocate people
under such a strategy prior to March 31, 1997.
SEC. 8133. (a) Notwithstanding any other provision of law,
the Chief of the National Guard Bureau may permit the use of
equipment of the National Guard Distance Learning Project by
any person or entity on a space-available, reimbursable basis. The
Chief of the National Guard Bureau shall establish the amount
of reimbursement for such use on a case-by-case basis.
(b) Amounts collected under subsection (a) shall be credited
to funds available for the National Guard Distance Learning Project
and be available to defray the costs associated with the use of
equipment of the project under that subsection. Such funds shall
be available for such purposes without fiscal year limitation.
SEC. 8134. Using funds available by this Act or any other
Act, the Secretary of the Air Force, pursuant to a determination
under section 2690 of title 10, United States Code, may implement
cost-effective agreements for required heating facility modernization
in the Kaiserslautern Military Community in the Federal Republic
of Germany: Provided, That in the City of Kaiserslautern such
agreements will include the use of United States anthracite as
the base load energy for municipal district heat to the United
States Defense installations: Provided further, That at Landstuhl
Army Regional Medical Center and Ramstein Air Base, furnished
heat may be obtained from private, regional or municipal services,

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–118

if provisions are included for the consideration of United States
coal as an energy source.
SEC. 8135. (a) Section 2867 of the National Defense Authorization Act for Fiscal Year 1997 is amended—
(1) by striking out ‘‘Michael O’Callaghan Military Hospital’’
both places it appears in the text of such section and inserting
in lieu thereof ‘‘Mike O’Callaghan Federal Hospital’’; and
(2) in the section heading, by striking out ‘‘MICHAEL
O’CALLAGHAN MILITARY HOSPITAL’’ and inserting in lieu
thereof ‘‘MIKE O’CALLAGHAN FEDERAL HOSPITAL’’.
(b) The amendments made by subsection (a) shall take effect
as of the date of the enactment of the National Defense Authorization Act for Fiscal Year 1997 and shall apply as if such amendments
had been included in section 2867 of such Act when enacted.
SEC. 8136. (a) In addition to any other reductions required
by this Act, the following funds are hereby reduced from the following accounts in title IV of this Act in the specified amounts:
‘‘Research, Development, Test and Evaluation, Army’’,
$101,257,000;
‘‘Research, Development, Test and Evaluation, Navy’’,
$164,179,000;
‘‘Research, Development, Test and Evaluation, Air Force’’,
$289,992,000;
‘‘Research, Development, Test and Evaluation, DefenseWide’’, $119,483,000; and
‘‘Developmental Test and Evaluation, Defense’’, $5,641,000.
(b) The reductions taken pursuant to subsection (a) shall be
applied on a pro-rata basis by subproject within each R-1 program
element as modified by this Act, except that no reduction may
be taken against the funds made available to the Department
of Defense for Ballistic Missile Defense.
(c) Unless expressly exempted by subsection (b), each program
element, program, project, subproject, and activity funded by title
IV of this Act shall be allocated a pro-rata share of any of the
reductions made by this section.
(d) Not later than 60 days after enactment of this Act, the
Secretary of Defense shall submit to the Congressional defense
committees a report listing the specific funding reductions allocated
to each category listed in subsection (c) above pursuant to this
section.
SEC. 8137. In addition to amounts appropriated or otherwise
made available in this Act, $230,680,000 is hereby appropriated
to the Department of Defense for anti-terrorism, counter-terrorism,
and security enhancement programs and activities, as follows:
‘‘Operation and Maintenance, Army’’, $15,249,000;
‘‘Operation and Maintenance, Navy’’, $23,956,000;
‘‘Operation and Maintenance, Marine Corps’’, $600,000;
‘‘Operation and Maintenance, Air Force’’, $10,750,000;
‘‘Operation and Maintenance, Defense-Wide’’, $29,534,000;
‘‘Operation and Maintenance, Navy Reserve’’, $517,000;
‘‘Other Procurement, Army’’, $5,252,000;
‘‘Other Procurement, Air Force’’, $101,472,000;
‘‘Procurement, Defense-Wide’’, $35,350,000;
‘‘Research, Development, Test and Evaluation, DefenseWide’’, $8,000,000:
Provided, That such amounts in their entirety are designated by
Congress as an emergency requirement pursuant to section

110 STAT. 3009–119

Short title.

PUBLIC LAW 104–208—SEPT. 30, 1996

251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended; Provided further, That funds appropriated in this section, or made available by transfer of such funds,
for programs and activities of the Central Intelligence Agency shall
remain available until September 30, 1997; Provided further, That
funds appropriated in this section or made available by transfer
of such funds, to any intelligence agency or activity of the United
States Government shall be deemed to be specifically authorized
by the Congress for purposes of section 504 of the National Security
Act of 1947 (50 U.S.C. 414).
SEC. 8138. Of the amounts provided in Titles I though VIII
of this Act, $230,680,000 are permanently canceled: Provided, That
the Secretary of Defense shall allocate the amount of budgetary
resources canceled by this section on a pro-rata basis among each
budget activity, activity group and subactivity group and each program, project or activity within each appropriations account.
Titles I through VIII of this Act may be cited as the ‘‘Department of Defense Appropriations Act, 1997’’.
TITLE IX—FISCAL YEAR 1996 SUPPLEMENTAL APPROPRIATIONS
AND
RESCISSIONS
FOR
ANTI-TERRORISM,
COUNTER-TERRORISM, AND SECURITY ENHANCEMENT
ACTIVITIES
The following sums are appropriated, out of any money in
the Treasury not otherwise appropriated, to provide emergency
supplemental appropriations for the Department of Defense for
the fiscal year ending September 30, 1996, namely:
DEPARTMENT OF DEFENSE—MILITARY
MILITARY PERSONNEL
MILITARY PERSONNEL, ARMY
For an additional amount for ‘‘Military Personnel, Army’’,
$4,800,000: Provided, That such amount is designated by Congress
as an emergency requirement pursuant to section 251(b)(2)(D)(i)
of the Balanced Budget and Emergency Deficit Control Act of 1985,
as amended.
MILITARY PERSONNEL, AIR FORCE
For an additional amount for ‘‘Military Personnel, Air Force’’,
$4,000,000: Provided, That such amount is designated by Congress
as an emergency requirement pursuant to section 251(b)(2)(D)(i)
of the Balanced Budget and Emergency Deficit Control Act of 1985,
as amended.
OPERATION AND MAINTENANCE
OPERATION

AND

MAINTENANCE, ARMY

For an additional amount for ‘‘Operation and Maintenance,
Army’’, $21,200,000, to remain available until September 30, 1997:

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–120

Provided, That such amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.
OPERATION

AND

MAINTENANCE, AIR FORCE

For an additional amount for ‘‘Operation and Maintenance,
Air Force’’, $67,400,000, to remain available until September 30,
1997: Provided, That such amount is designated by Congress as
an emergency requirement pursuant to section 251(b)(2)(D)(i) of
the Balanced Budget and Emergency Deficit Control Act of 1985,
as amended: Provided further, That these funds may be used to
liquidate obligations incurred by the Air Force during fiscal year
1996 for costs incurred under the authority of the Feed and Forage
Act (41 U.S.C. 11).
PROCUREMENT
OTHER PROCUREMENT, ARMY
For an additional amount for ‘‘Other Procurement, Army’’,
$11,600,000, to remain available until September 30, 1998: Provided, That such amount is designated by Congress as an emergency
requirement pursuant to section 251(b)(2)(D)(i) of the Balanced
Budget and Emergency Deficit Control Act of 1985, as amended.
OTHER PROCUREMENT, AIR FORCE
For an additional amount for ‘‘Other Procurement, Air Force’’,
$13,600,000, to remain available until September 30, 1998: Provided, That such amount is designated by Congress as an emergency
requirement pursuant to section 251(b)(2)(D)(i) of the Balanced
Budget and Emergency Deficit Control Act of 1985, as amended.
GENERAL PROVISIONS
(RESCISSIONS)

SEC. 9001. Of the funds provided in Department of Defense
Appropriations Acts, the following funds are hereby rescinded, as
of the date of enactment of this Act, from the following accounts
in the specified amounts:
‘‘Procurement of Ammunition, Army, 1994/1996’’, $1,000,000;
‘‘Other Procurement, Army, 1994/1996’’, $6,000,000;
‘‘Research, Development, Test and Evaluation, Army, 1995/
1996’’, $2,055,000;
‘‘Aircraft Procurement, Navy, 1994/1996’’, $10,157,000;
‘‘Weapons Procurement, Navy, 1994/1996’’, $10,688,000;
‘‘Other Procurement, Navy, 1994/1996’’, $4,000,000;
‘‘Research, Development, Test and Evaluation, Navy, 1995/
1996’’, $6,909,000;
‘‘Aircraft Procurement, Air Force, 1994/1996’’, $18,771,000;
‘‘Missile Procurement, Air Force, 1994/1996’’, $10,156,000;
‘‘Other Procurement, Air Force, 1994/1996’’, $14,395,000;
‘‘Research, Development, Test and Evaluation, Air Force,
1995/1996’’, $4,918,000;
‘‘Procurement, Defense-Wide, 1994/1996’’, $9,954,000;

110 STAT. 3009–121

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘Research, Development, Test and Evaluation, Defense-Wide,
1995/1996’’, $23,597,000.
SEC. 9002. Funds appropriated by this title, or made available
by transfer of such funds, for programs and activities of the Central
Intelligence Agency shall remain available until September 30,
1997: Provided, That funds appropriated by this title, or made
available by transfer of such funds, to any intelligence agency
or intelligence activity of the United States Government shall be
deemed to be specifically authorized by the Congress for purposes
of section 504 of the National Security Act of 1947 (50 U.S.C.
414).
(c) For programs, projects or activities in the Foreign Operations, Export Financing, and Related Programs Appropriations
Act, 1997, provided as follows, to be effective as if it had been
enacted into law as the regular appropriations Act:
AN ACT
Making appropriations for the foreign operations, export financing, and related
programs for the fiscal year ending September 30, 1997, and for other purposes.
Foreign
Operations,
Export
Financing, and
Related
Programs
Appropriations
Act, 1997.
Post, p. 3009–
172.

TITLE I—EXPORT AND INVESTMENT ASSISTANCE
EXPORT-IMPORT BANK OF THE UNITED STATES

The Export-Import Bank of the United States is authorized
to make such expenditures within the limits of funds and borrowing
authority available to such corporation, and in accordance 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, as may be necessary in carrying
out the program for the current fiscal year for such corporation:
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.
SUBSIDY APPROPRIATION

For the cost of direct loans, loan guarantees, insurance, and
tied-aid grants as authorized by section 10 of the Export-Import
Bank Act of 1945, as amended, $726,000,000 to remain available
until September 30, 1998: Provided, That such costs, including
the cost of modifying such loans, shall be as defined in section
502 of the Congressional Budget Act of 1974: Provided further,
That such sums shall remain available until 2012 for the disbursement of direct loans, loan guarantees, insurance and tied-aid grants
obligated in fiscal years 1997 and 1998: Provided further, That
up to $50,000,000 of funds appropriated by this paragraph shall
remain available until expended and may be used for tied-aid
grant purposes: Provided further, That none of the funds appropriated by this paragraph may be used for tied-aid credits or grants
except through the regular notification procedures of the Committees on Appropriations: Provided further, That funds appropriated
by this paragraph are made available notwithstanding section

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–122

2(b)(2) of the Export-Import Bank Act of 1945, in connection with
the purchase or lease of any product by any East European country,
any Baltic State, or any agency or national thereof.
ADMINISTRATIVE EXPENSES

For administrative expenses to carry out the direct and guaranteed loan and insurance programs (to be computed on an accrual
basis), including hire of passenger motor vehicles and services as
authorized by 5 U.S.C. 3109, and not to exceed $20,000 for official
reception and representation expenses for members of the Board
of Directors, $46,614,000: Provided, That necessary expenses
(including special services performed on a contract or fee basis,
but not including other personal services) in connection with the
collection of moneys owed the Export-Import Bank, repossession
or sale of pledged collateral or other assets acquired by the ExportImport Bank in satisfaction of moneys owed the Export-Import
Bank, or the investigation or appraisal of any property, or the
evaluation of the legal or technical aspects of any transaction for
which an application for a loan, guarantee or insurance commitment
has been made, shall be considered nonadministrative expenses
for the purposes of this heading: Provided further, That, effective
July 21, 1997, notwithstanding any other provision of law, none
of the funds made available by this or any other Act may be
made available to compensate the incumbent Chairman and President of the Export-Import Bank Provided further, That, notwithstanding subsection (b) of section 117 of the Export Enhancement
Act of 1992, subsection (a) thereof shall remain in effect until
October 1, 1997.
OVERSEAS PRIVATE INVESTMENT CORPORATION
NONCREDIT ACCOUNT

The Overseas Private Investment Corporation is authorized
to make, without regard to fiscal year limitations, as provided
by 31 U.S.C. 9104, such expenditures and commitments within
the limits of funds available to it and in accordance with law
as may be necessary: Provided, That the amount available for
administrative expenses to carry out the credit and insurance programs (including an amount for official reception and representation
expenses which shall not exceed $35,000) shall not exceed
$32,000,000: Provided further, That project-specific transaction
costs, including direct and indirect costs incurred in claims settlements, and other direct costs associated with services provided
to specific investors or potential investors pursuant to section 234
of the Foreign Assistance Act of 1961, shall not be considered
administrative expenses for the purposes of this heading.
PROGRAM ACCOUNT

For the cost of direct and guaranteed loans, $72,000,000, as
authorized by section 234 of the Foreign Assistance Act of 1961:
Provided, That such costs, including the cost of modifying such
loans, shall be as defined in section 502 of the Congressional Budget
Act of 1974: Provided further, That such sums shall be available
for direct loan obligations and loan guaranty commitments incurred
or made during fiscal years 1997 and 1998: Provided further, That
such sums shall remain available through fiscal year 2005 for

12 USC 635a
note.

110 STAT. 3009–123

PUBLIC LAW 104–208—SEPT. 30, 1996

the disbursement of direct and guaranteed loans obligated in fiscal
year 1997, and through fiscal year 2006 for the disbursement of
direct and guaranteed loans obligated in fiscal year 1998: Provided
further, That section 235(a)(3) of the Foreign Assistance Act of
1961 (22 U.S.C. 2195(a)(3)) is amended by striking out ‘‘1996’’
and inserting in lieu thereof ‘‘1997’’ and, notwithstanding section
235(a)(1) of the Foreign Assistance Act of 1961 (22 U.S.C.
2195(a)(1)), the maximum contingent liability of issuing authority
for insurance and financing shall not in the aggregate exceed the
amounts provided in section 235(a)(1) and (2) of that Act. In addition, such sums as may be necessary for administrative expenses
to carry out the credit program may be derived from amounts
available for administrative expenses to carry out the credit and
insurance programs in the Overseas Private Investment Corporation Noncredit Account and merged with said account.
FUNDS APPROPRIATED

TO THE

PRESIDENT

TRADE AND DEVELOPMENT AGENCY

For necessary expenses to carry out the provisions of section
661 of the Foreign Assistance Act of 1961, $40,000,000: Provided,
That the Trade and Development Agency may receive reimbursements from corporations and other entities for the costs of grants
for feasibility studies and other project planning services, to be
deposited as an offsetting collection to this account and to be available for obligation until September 30, 1998, for necessary expenses
under this paragraph: Provided further, That such reimbursements
shall not cover, or be allocated against, direct or indirect administrative costs of the agency.
TITLE II—BILATERAL ECONOMIC ASSISTANCE
FUNDS APPROPRIATED

TO THE

PRESIDENT

For expenses necessary to enable the President to carry out
the provisions of the Foreign Assistance Act of 1961, and for other
purposes, to remain available until September 30, 1997, unless
otherwise specified herein, as follows:
AGENCY FOR INTERNATIONAL DEVELOPMENT
CHILD SURVIVAL AND DISEASE PROGRAMS FUND

For necessary expenses to carry out the provisions of part
I and chapter 4 of part II of the Foreign Assistance Act of 1961,
for child survival, basic education, assistance to combat tropical
and other diseases, and related activities, in addition to funds
otherwise available for such purposes, $600,000,000, to remain
available until expended: Provided, That this amount shall be made
available for such activities as (1) immunization programs, (2) oral
rehydration programs, (3) health and nutrition programs, and
related education programs, which address the needs of mothers
and children, (4) water and sanitation programs, (5) assistance
for displaced and orphaned children, (6) programs for the prevention, treatment, and control of, and research on, tuberculosis, HIV/
AIDS, polio, malaria and other diseases, (7) not to exceed
$98,000,000 for basic education programs for children, and (8) a
contribution on a grant basis to the United Nations Children’s

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–124

Fund (UNICEF) pursuant to section 301 of the Foreign Assistance
Act of 1961.
DEVELOPMENT ASSISTANCE
(INCLUDING TRANSFER OF FUNDS)

For necessary expenses to carry out the provisions of sections
103 through 106 and chapter 10 of part I of the Foreign Assistance
Act of 1961, title V of the International Security and Development
Cooperation Act of 1980 (Public Law 96–533) and the provisions
of section 401 of the Foreign Assistance Act of 1969, $1,181,500,000,
to remain available until September 30, 1998: Provided, That of
the amount appropriated under this heading, up to $20,000,000
may be made available for the Inter-American Foundation and
shall be apportioned directly to that agency: Provided further, That
of the amount appropriated under this heading, up to $11,500,000
may be made available for the African Development Foundation
and shall be apportioned directly to that agency: Provided further,
That of the funds appropriated under title II of this Act that
are administered by the Agency for International Development and
made available for family planning assistance, not less than 65
percent shall be made available directly to the agency’s central
Office of Population and shall be programmed by that office for
family planning activities: Provided further, That of the funds
appropriated under this heading and under the heading ‘‘Child
Survival and Disease Programs Fund’’ that are made available
by the Agency for International Development for development
assistance activities, the amount made available to carry out chapter 10 of part I of the Foreign Assistance Act of 1961 (relating
to the Development Fund for Africa) and the amount made available
for activities in the Latin America and Caribbean region should
be in at least the same proportion as the amount identified in
the fiscal year 1997 draft congressional presentation document for
development assistance for each such region is to the total amount
requested for development assistance for such fiscal year: Provided
further, That funds appropriated under this heading may be made
available, notwithstanding any other provision of law except section
515 of this Act, to assist Vietnam to reform its trade regime (such
as through reform of its commercial and investment legal codes):
Provided further, That none of the funds made available in this
Act nor any unobligated balances from prior appropriations may
be made available to any organization or program which, as determined by the President of the United States, supports or participates in the management of a program of coercive abortion or
involuntary sterilization: Provided further, That none of the funds
made available under this heading may be used to pay for the
performance of abortion as a method of family planning or to
motivate or coerce any person to practice abortions; and that in
order to reduce reliance on abortion in developing nations, funds
shall be available only to voluntary family planning projects which
offer, either directly or through referral to, or information about
access to, a broad range of family planning methods and services:
Provided further, That in awarding grants for natural family planning under section 104 of the Foreign Assistance Act of 1961 no
applicant shall be discriminated against because of such applicant’s
religious or conscientious commitment to offer only natural family
planning; and, additionally, all such applicants shall comply with

110 STAT. 3009–125

PUBLIC LAW 104–208—SEPT. 30, 1996

the requirements of the previous proviso: Provided further, That
for purposes of this or any other Act authorizing or appropriating
funds for foreign operations, export financing, and related programs,
the term ‘‘motivate’’, as it relates to family planning assistance,
shall not be construed to prohibit the provision, consistent with
local law, of information or counseling about all pregnancy options:
Provided further, That nothing in this paragraph shall be construed
to alter any existing statutory prohibitions against abortion under
section 104 of the Foreign Assistance Act of 1961: Provided further,
That, notwithstanding section 109 of the Foreign Assistance Act
of 1961, of the funds appropriated under this heading in this Act,
and of the unobligated balances of funds previously appropriated
under this heading, up to $17,500,000 may be transferred to ‘‘International Organizations and Programs’’ for a contribution to the
International Fund for Agricultural Development (IFAD), and that
any such transfer of funds shall be subject to the regular notification
procedures of the Committees on Appropriations: Provided further,
That of the funds appropriated under this heading that are made
available for assistance programs for displaced and orphaned children and victims of war, not to exceed $25,000, in addition to
funds otherwise available for such purposes, may be used to monitor
and provide oversight of such programs: Provided further, That
not less than $500,000 of the funds made available under this
heading shall be available only for support of the United States
Telecommunications Training Institute.
CYPRUS

Of the funds appropriated under the headings ‘‘Development
Assistance’’ and ‘‘Economic Support Fund’’, not less than
$15,000,000 shall be made available for Cyprus to be used only
for scholarships, administrative support of the scholarship program,
bicommunal projects, and measures aimed at reunification of the
island and designed to reduce tensions and promote peace and
cooperation between the two communities on Cyprus.
BURMA

Of the funds appropriated by this Act to carry out the provisions
of chapter 4 of part II of the Foreign Assistance Act of 1961,
not less than $2,500,000 shall be made available to support activities in Burma, along the Burma-Thailand border, and for activities
of Burmese student groups and other organizations located outside
Burma, for the purposes of fostering democracy in Burma, supporting the provision of medical supplies and other humanitarian assistance to Burmese located in Burma or displaced Burmese along
the borders, and for other purposes: Provided, That of this amount,
not less than $200,000 shall be made available to support newspapers, publications, and other media activities promoting democracy inside Burma: Provided further, That funds made available
under this heading may be made available notwithstanding any
other provision of law: Provided further, That provision of such
funds shall be made available subject to the regular notification
procedures of the Committees on Appropriations.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–126

PRIVATE AND VOLUNTARY ORGANIZATIONS

None of the funds appropriated or otherwise made available
by this Act for development assistance may be made available
to any United States private and voluntary organization, except
any cooperative development organization, which obtains less than
20 per centum of its total annual funding for international activities
from sources other than the United States Government: Provided,
That the requirements of the provisions of section 123(g) of the
Foreign Assistance Act of 1961 and the provisions on private and
voluntary organizations in title II of the ‘‘Foreign Assistance and
Related Programs Appropriations Act, 1985’’ (as enacted in Public
Law 98–473) shall be superseded by the provisions of this section,
except that the authority contained in the last sentence of section
123(g) may be exercised by the Administrator with regard to the
requirements of this paragraph.
Funds appropriated or otherwise made available under title
II of this Act should be made available to private and voluntary
organizations at a level which is equivalent to the level provided
in fiscal year 1995. Such private and voluntary organizations shall
include those which operate on a not-for-profit basis, receive contributions from private sources, receive voluntary support from
the public and are deemed to be among the most cost-effective
and successful providers of development assistance.
INTERNATIONAL DISASTER ASSISTANCE

For necessary expenses for international disaster relief,
rehabilitation, and reconstruction assistance pursuant to section
491 of the Foreign Assistance Act of 1961, as amended,
$190,000,000, to remain available until expended.
DEBT RESTRUCTURING

For the cost, as defined in section 502 of the Congressional
Budget Act of 1974, of modifying direct loans and loan guarantees,
as the President may determine, for which funds have been appropriated or otherwise made available for programs within the International Affairs Budget Function 150, including the cost of selling,
reducing, or canceling amounts, through debt buybacks and swaps,
owed to the United States as a result of concessional loans made
to eligible Latin American and Caribbean countries, pursuant to
part IV of the Foreign Assistance Act of 1961, and of modifying
concessional loans authorized under title I of the Agricultural Trade
Development and Assistance Act of 1954, as amended, as authorized
under subsection (a) under the heading ‘‘Debt Reduction for Jordan’’
in title VI of Public Law 103–306; $27,000,000, to remain available
until expended: Provided, That none of the funds appropriated
under this heading shall be obligated except as provided through
the regular notification procedures of the Committees on Appropriations.
MICRO AND SMALL ENTERPRISE DEVELOPMENT PROGRAM ACCOUNT

For the cost of direct loans and loan guarantees, $1,500,000,
as authorized by section 108 of the Foreign Assistance Act of 1961,
as amended: Provided, That such costs shall be as defined in section
502 of the Congressional Budget Act of 1974: Provided further,
That guarantees of loans made under this heading in support

22 USC 2151u
note.

110 STAT. 3009–127

PUBLIC LAW 104–208—SEPT. 30, 1996

of microenterprise activities may guarantee up to 70 percent of
the principal amount of any such loans notwithstanding section
108 of the Foreign Assistance Act of 1961. In addition, for administrative expenses to carry out programs under this heading,
$500,000, all of which may be transferred to and merged with
the appropriation for Operating Expenses of the Agency for International Development: Provided further, That funds made available
under this heading shall remain available until September 30,
1998.
HOUSING GUARANTY PROGRAM ACCOUNT

For the cost, as defined in section 502 of the Congressional
Budget Act of 1974, of guaranteed loans authorized by sections
221 and 222 of the Foreign Assistance Act of 1961, $3,500,000,
to remain available until September 30, 1998: Provided, That these
funds are available to subsidize loan principal, 100 percent of which
shall be guaranteed, pursuant to the authority of such sections.
In addition, for administrative expenses to carry out guaranteed
loan programs, $6,000,000, all of which may be transferred to
and merged with the appropriation for Operating Expenses of the
Agency for International Development: Provided further, That
commitments to guarantee loans under this heading may be entered
into notwithstanding the second and third sentences of section
222(a) and, with regard to programs for Central and Eastern Europe
and programs for the benefit of South Africans disadvantaged by
apartheid, section 223(j) of the Foreign Assistance Act of 1961.
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 1980,
$43,826,000.
OPERATING EXPENSES OF THE AGENCY FOR INTERNATIONAL
DEVELOPMENT

For necessary expenses to carry out the provisions of section
667, $470,750,000: Provided, That none of the funds appropriated
by this Act for programs administered by the Agency for International Development may be used to finance printing costs of
any report or study (except feasibility, design, or evaluation reports
or studies) in excess of $25,000 without the approval of the Administrator of the Agency or the Administrator’s designee.
OPERATING EXPENSES OF THE AGENCY FOR INTERNATIONAL
DEVELOPMENT OFFICE OF INSPECTOR GENERAL

For necessary expenses to carry out the provisions of section
667, $30,000,000, to remain available until September 30, 1998,
which sum shall be available for the Office of the Inspector General
of the Agency for International Development.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–128

OTHER BILATERAL ECONOMIC ASSISTANCE
ECONOMIC SUPPORT FUND

For necessary expenses to carry out the provisions of chapter
4 of part II, $2,343,000,000, to remain available until September
30, 1998: Provided, That of the funds appropriated under this
heading, not less than $1,200,000,000 shall be available only for
Israel, which sum shall be available on a grant basis as a cash
transfer and shall be disbursed within thirty days of enactment
of this Act or by October 31, 1996, whichever is later: Provided
further, That not less than $815,000,000 shall be available only
for Egypt, which sum shall be provided on a grant basis, and
of which sum cash transfer assistance may be provided, with the
understanding that Egypt will undertake significant economic
reforms which are additional to those which were undertaken in
previous fiscal years, and of which not less than $200,000,000
shall be provided as Commodity Import Program assistance: Provided further, That in exercising the authority to provide cash
transfer assistance for Israel and Egypt, the President shall ensure
that the level of such assistance does not cause an adverse impact
on the total level of nonmilitary exports from the United States
to each such country: Provided further, That it is the sense of
the Congress that the recommended levels of assistance for Egypt
and Israel are based in great measure upon their continued participation in the Camp David Accords and upon the Egyptian-Israeli
peace treaty: Provided further, That none of the funds appropriated
under this heading shall be made available for Zaire.
INTERNATIONAL FUND FOR IRELAND

For necessary expenses to carry out the provisions of chapter
4 of part II of the Foreign Assistance Act of 1961, $19,600,000,
which shall be available for the United States contribution to the
International Fund for Ireland and shall be made available in
accordance with the provisions of the Anglo-Irish Agreement Support Act of 1986 (Public Law 99–415): Provided, That such amount
shall be expended at the minimum rate necessary to make timely
payment for projects and activities: Provided further, That funds
made available under this heading shall remain available until
September 30, 1998.
ASSISTANCE FOR EASTERN EUROPE AND THE BALTIC STATES

(a) For necessary expenses to carry out the provisions of the
Foreign Assistance Act of 1961 and the Support for East European
Democracy (SEED) Act of 1989, $475,000,000, to remain available
until September 30, 1998, which shall be available, notwithstanding
any other provision of law, for economic assistance and for related
programs for Eastern Europe and the Baltic States.
(b) Funds appropriated under this heading or in prior appropriations Acts that are or have been made available for an Enterprise Fund may be deposited by such Fund in interest-bearing
accounts prior to the Fund’s disbursement of such funds for program
purposes. The Fund may retain for such program purposes any
interest earned on such deposits without returning such interest
to the Treasury of the United States and without further appropriation by the Congress. Funds made available for Enterprise Funds

110 STAT. 3009–129

PUBLIC LAW 104–208—SEPT. 30, 1996

shall be expended at the minimum rate necessary to make timely
payment for projects and activities.
(c) Funds appropriated under this heading shall be considered
to be economic assistance under the Foreign Assistance Act of
1961 for purposes of making available the administrative authorities contained in that Act for the use of economic assistance.
(d) None of the funds appropriated under this heading may
be made available for new housing construction or repair or
reconstruction of existing housing in Bosnia and Herzegovina unless
directly related to the efforts of United States troops to promote
peace in said country.
(e) With regard to funds appropriated or otherwise made available under this heading for the economic revitalization program
in Bosnia and Herzegovina, and local currencies generated by such
funds (including the conversion of funds appropriated under this
heading into currency used by Bosnia and Herzegovina as local
currency and local currency returned or repaid under such program)—
(1) the Administrator of the Agency for International Development shall provide written approval for grants and loans
prior to the obligation and expenditure of funds for such purposes, and prior to the use of funds that have been returned
or repaid to any lending facility or grantee; and
(2) the provisions of section 531 of this Act shall apply.
(f) With regard to funds appropriated under this heading that
are made available for economic revitalization programs in Bosnia
and Herzegovina, 50 percent of such funds shall not be available
for obligation unless the President determines and certifies to the
Committees on Appropriations that the Federation of Bosnia and
Herzegovina has complied with article III of annex 1–A of the
General Framework Agreement for Peace in Bosnia and
Herzegovina concerning the withdrawal of foreign forces, and that
intelligence cooperation on training, investigations, and related
activities between Iranian officials and Bosnian officials has been
terminated.
ASSISTANCE FOR THE NEW INDEPENDENT STATES OF THE FORMER
SOVIET UNION

(a) For necessary expenses to carry out the provisions of chapter
11 of part I of the Foreign Assistance Act of 1961 and the FREEDOM Support Act, for assistance for the new independent states
of the former Soviet Union and for related programs, $625,000,000,
to remain available until September 30, 1998: Provided, That the
provisions of such chapter shall apply to funds appropriated by
this paragraph.
(b) None of the funds appropriated under this heading shall
be transferred to the Government of Russia—
(1) unless that Government is making progress in
implementing comprehensive economic reforms based on market principles, private ownership, negotiating repayment of
commercial debt, respect for commercial contracts, and equitable treatment of foreign private investment; and
(2) if that Government applies or transfers United States
assistance to any entity for the purpose of expropriating or
seizing ownership or control of assets, investments, or ventures.
(c) Funds may be furnished without regard to subsection (b)
if the President determines that to do so is in the national interest.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–130

(d) None of the funds appropriated under this heading shall
be made available to any government of the new independent
states of the former Soviet Union if that government directs any
action in violation of the territorial integrity or national sovereignty
of any other new independent state, such as those violations
included in the Helsinki Final Act: Provided, That such funds
may be made available without regard to the restriction in this
subsection if the President determines that to do so is in the
national security interest of the United States: Provided further,
That the restriction of this subsection shall not apply to the use
of such funds for the provision of assistance for purposes of humanitarian, disaster and refugee relief.
(e) None of the funds appropriated under this heading for
the new independent states of the former Soviet Union shall be
made available for any state to enhance its military capability:
Provided, That restriction does not apply to demilitarization or
nonproliferation programs.
(f) Funds appropriated under this heading shall be subject
to the regular notification procedures of the Committees on Appropriations.
(g) Funds made available in this Act for assistance to the
new independent states of the former Soviet Union shall be subject
to the provisions of section 117 (relating to environment and natural
resources) of the Foreign Assistance Act of 1961.
(h)(1) Of the funds appropriated under title II of this Act,
including funds appropriated under this heading, not less than
$10,000,000 shall be available only for assistance for Mongolia,
of which amount not less than $6,000,000 shall be available only
for the Mongolian energy sector.
(2) Funds made available for assistance for Mongolia may be
made available in accordance with the purposes and utilizing the
authorities provided in chapter 11 of part I of the Foreign Assistance
Act of 1961.
(i) Funds made available in this Act for assistance to the
New Independent States of the former Soviet Union shall be provided to the maximum extent feasible through the private sector,
including small- and medium-size businesses, entrepreneurs, and
others with indigenous private enterprises in the region,
intermediary development organizations committed to private enterprise, and private voluntary organizations: Provided, That grantees
and contractors should, to the maximum extent possible, place
in key staff positions specialists with prior on the ground expertise
in the region of activity and fluency in one of the local languages.
(j) In issuing new task orders, entering into contracts, or making grants, with funds appropriated under this heading or in prior
appropriations Acts, for projects or activities that have as one
of their primary purposes the fostering of private sector development, the Coordinator for United States Assistance to the New
Independent States and the implementing agency shall encourage
the participation of and give significant weight to contractors and
grantees who propose investing a significant amount of their own
resources (including volunteer services and in-kind contributions)
in such projects and activities.
(k) Of the funds made available under this heading, not less
than $225,000,000 shall be made available for Ukraine, of which
funds not less than $25,000,000 shall be made available to carry
out United States decommissioning obligations regarding the

22 USC 5814
note.

110 STAT. 3009–131

PUBLIC LAW 104–208—SEPT. 30, 1996

Chornobyl plant made in the Memorandum of Understanding
between the Government of Ukraine and the G–7 Group: Provided,
That not less than $35,000,000 shall be made available for agricultural projects, including those undertaken through the Food Systems Restructuring Program, which leverage private sector
resources with United States Government assistance: Provided further, That $5,000,000 shall be available for a small business incubator project: Provided further, That $5,000,000 shall be made available for screening and treatment of childhood mental and physical
illnesses related to Chornobyl radiation: Provided further, That
$5,000,000 shall be available only for a land and resource management institute to identify nuclear contamination at Chornobyl: Provided further, That $15,000,000 shall be available for the legal
restructuring necessary to support a decentralized market-oriented
economic system, including enactment of necessary substantive
commercial law, implementation of reforms necessary to establish
an independent judiciary and bar, legal education for judges, attorneys, and law students, and education of the public designed to
promote understanding of a law-based economy.
(l) Of the funds made available for Ukraine, under this Act
and Public Law 104–107, not less than $50,000,000 shall be made
available to improve safety at nuclear reactors: Provided, That
of this amount $20,000,000 shall be provided for the purchase
and installation of, and training for, safety parameter display or
control systems at all operational nuclear reactors: Provided further,
That of this amount, $20,000,000 shall be made available for the
purchase, construction, installation and training for Full Scope and
Analytical/Engineering simulators: Provided further, That of this
amount funds shall be made available to conduct Safety Analysis
Reports at all operational nuclear reactors.
(m) Of the funds made available by this Act, not less than
$95,000,000 shall be made available for Armenia.
(n) Funds appropriated under this heading or in prior appropriations Acts that are or have been made available for an Enterprise Fund may be deposited by such Fund in interest-bearing
accounts prior to the disbursement of such funds by the Fund
for program purposes. The Fund may retain for such program
proposes any interest earned on such deposits without returning
such interest to the Treasury of the United States and without
further appropriation by the Congress. Funds made available for
Enterprise Funds shall be expended at the minimum rate necessary
to make timely payment for projects and activities.
(o)(1) None of the funds appropriated under this heading may
be made available for Russia unless the President determines and
certifies in writing to the Committees on Appropriations that the
Government of Russia has terminated implementation of arrangements to provide Iran with technical expertise, training, technology,
or equipment necessary to develop a nuclear reactor or related
nuclear research facilities or programs.
(2) Paragraph (1) shall not apply if the President determines
that making such funds available is important to the national
security interest of the United States. Any such determination
shall cease to be effective six months after being made unless
the President determines that its continuation is important to the
national security interest of the United States.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–132

(p) Of the funds made available under this heading, not less
than $10,000,000 shall be made available for a United States contribution to the Trans-Caucasus Enterprise Fund: Provided, That
to further the development of the private sector in the TransCaucasus, such amount and amounts appropriated for purposes
of subsection (t) under the heading ‘‘Assistance for the New
Independent States of the Former Soviet Union’’ in Public Law
104–107 may be invested in a Trans-Caucasus Enterprise Fund
or, notwithstanding the provisions of such subsection, invested in
other funds established by public or private organizations, or transferred to the Overseas Private Investment Corporation to be available, subject to the requirements of the Federal Credit Reform
Act, to subsidize the costs of direct and guaranteed loans.
(q)(1) Funds appropriated under this heading may not be made
available for the Government of Ukraine if the President determines
and reports to the Committees on Appropriations that the Government of Ukraine is engaged in military cooperation with the Government of Libya.
(2) Paragraph (1) shall not apply if the President determines
that making such funds available is important to the national
security interest of the United States. Any such determination
shall cease to be effective six months after being made unless
the President determines that its continuation is important to the
national security interest of the United States.
(r) Of the funds appropriated under this heading, not less
than $15,000,000 should be available only for a family planning
program for the New Independent States of the former Soviet
Union comparable to the family planning program currently
administered by the Agency for International Development in the
Central Asian Republics and focusing on population assistance
which provides an alternative to abortion.
(s) Funds made available under this Act or any other Act
(other than assistance under title V of the FREEDOM Support
Act and section 1424 of the ‘‘National Defense Authorization Act
for Fiscal Year 1997’’) may not be provided for assistance to the
Government of Azerbaijan until the President determines, and so
reports to the Congress, that the Government of Azerbaijan is
taking demonstrable steps to cease all blockades and other offensive
uses of force against Armenia and Nagorno-Karabakh.
(t) Of the funds appropriated under this heading, not less
than $2,500,000 shall be made available for the American-Russian
Center.
INDEPENDENT AGENCY
PEACE CORPS

For expenses necessary to carry out the provisions of the Peace
Corps Act (75 Stat. 612), $208,000,000, including the purchase
of not to exceed five passenger motor vehicles for administrative
purposes for use outside of the United States: Provided, That none
of the funds appropriated under this heading shall be used to
pay for abortions: Provided further, That funds appropriated under
this heading shall remain available until September 30, 1998.

110 STAT. 3009–133

PUBLIC LAW 104–208—SEPT. 30, 1996
DEPARTMENT

OF

STATE

INTERNATIONAL NARCOTICS CONTROL

For necessary expenses to carry out section 481 of the Foreign
Assistance Act of 1961, $213,000,000: Provided, That during fiscal
year 1997, the Department of State may also use the authority
of section 608 of the Foreign Assistance Act of 1961, without regard
to its restrictions, to receive non-lethal excess property from an
agency of the United States Government for the purpose of providing it to a foreign country under chapter 8 of part I of that Act
subject to the regular notification procedures of the Committees
on Appropriations: Provided further, That none of the funds made
available under this heading may be provided to any unit of the
security forces of a foreign country if the Secretary of State has
credible evidence to believe such unit has committed gross violations
of human rights unless the Secretary determines and reports to
the Committees on Appropriations that the government of such
country is taking steps to bring the responsible members of the
security forces unit to justice.
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, assistance
to refugees, including contributions to the International Organization for Migration and the United Nations High Commissioner
for Refugees, and other activities to meet refugee and migration
needs; salaries and expenses of personnel and dependents as authorized by the Foreign Service Act of 1980; allowances as authorized
by sections 5921 through 5925 of title 5, United States Code;
purchase and hire of passenger motor vehicles; and services as
authorized by section 3109 of title 5, United States Code,
$650,000,000: Provided, That not more than $12,000,000 shall be
available for administrative expenses: Provided further, That not
less than $80,000,000 shall be made available for refugees from
the former Soviet Union and Eastern Europe and other refugees
resettling in Israel.
REFUGEE RESETTLEMENT ASSISTANCE

For necessary expenses for the targeted assistance program
authorized by title IV of the Immigration and Nationality Act
and section 501 of the Refugee Education Assistance Act of 1980
and administered by the Office of Refugee Resettlement of the
Department of Health and Human Services, in addition to amounts
otherwise available for such purposes, $5,000,000.
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. 260(c)), $50,000,000, to remain available until
expended: Provided, That the funds made available under this
heading are appropriated notwithstanding the provisions contained
in section 2(c)(2) of the Migration and Refugee Assistance Act

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–134

of 1962 which would limit the amount of funds which could be
appropriated for this purpose.
NONPROLIFERATION, ANTI-TERRORISM, DEMINING AND RELATED
PROGRAMS

For necessary expenses for nonproliferation, anti-terrorism and
related programs and activities, $133,000,000, to carry out the
provisions of chapter 8 of part II of the Foreign Assistance Act
of 1961 for anti-terrorism assistance, section 504 of the FREEDOM
Support Act for the Nonproliferation and Disarmament Fund, section 23 of the Arms Export Control Act for demining activities,
notwithstanding any other provision of law, including activities
implemented through nongovernmental and international organizations, section 301 of the Foreign Assistance Act of 1961 for a
voluntary contribution to the International Atomic Energy Agency
(IAEA) and a voluntary contribution to the Korean Peninsula
Energy Development Organization (KEDO), and for the acquisition
and provision of goods and services, or for grants to Israel necessary
to support the eradication of terrorism in and around Israel: Provided, That of this amount not to exceed $15,000,000, to remain
available until expended, may be made available for the Nonproliferation and Disarmament Fund, notwithstanding any other
provision of law, to promote bilateral and multilateral activities
relating to nonproliferation and disarmament: Provided further,
That such funds may also be used for such countries other than
the new independent states of the former Soviet Union and international organizations when it is in the national security interest
of the United States to do so: Provided further, That such funds
shall be subject to the regular notification procedures of the
Committees on Appropriations: Provided further, That funds appropriated under this heading may be made available for the International Atomic Energy Agency only if the Secretary of State determines (and so reports to the Congress) that Israel is not being
denied its right to participate in the activities of that Agency:
Provided further, That not to exceed $25,000,000 may be made
available to the Korean Peninsula Energy Development Organization (KEDO) only for the administrative expenses and heavy fuel
oil costs associated with the Agreed Framework: Provided further,
That such funds may be obligated to KEDO only if, prior to such
obligation of funds, the President certifies and so reports to Congress that (1)(A) the United States is taking steps to assure that
progress is made on the implementation of the January 1, 1992,
Joint Declaration on the Denuclearization of the Korean Peninsula
and the implementation of the North-South dialogue, and (B) North
Korea is complying with the other provisions of the Agreed Framework between North Korea and the United States and with the
Confidential Minute; (2) North Korea is cooperating fully in the
canning and safe storage of all spent fuel from its graphite-moderated nuclear reactors and that such canning and safe storage
is scheduled to be completed by the end of fiscal year 1997; and
(3) North Korea has not significantly diverted assistance provided
by the United States for purposes for which it was not intended:
Provided further, That the President may waive the certification
requirements of the preceding proviso if the President determines
that it is vital to the national security interests of the United
States: Provided further, That no funds may be obligated for KEDO
until 30 calendar days after submission to Congress of the waiver

110 STAT. 3009–135

PUBLIC LAW 104–208—SEPT. 30, 1996

permitted under the preceding proviso: Provided further, That
before obligating any funds for KEDO, the President shall report
to Congress on (1) the cooperation of North Korea in the process
of returning to the United States the remains of United States
military personnel who are listed as missing in action as a result
of the Korean conflict (including conducting joint field activities
with the United States); (2) violations of the military armistice
agreement of 1953; (3) the actions which the United States is
taking to assure that North Korea is consistently taking steps
to implement the Joint Declaration on Denuclearization of the
Korean Peninsula and engage in North-South dialogue; and (4)
all instances of non-compliance with the Agreed Framework
between North Korea and the United States and the Confidential
Minute, including diversion of heavy fuel oil: Provided further,
That the obligation of such funds shall be subject to the regular
notification procedures of the Committees on Appropriations: Provided further, That the Secretary of State shall submit to the
appropriate congressional committees an annual report (to be
submitted with the annual presentation for appropriations) providing a full and detailed accounting of the fiscal year request for
the United States contribution to KEDO, the expected operating
budget of the Korean Peninsula Energy Development Organization,
to include proposed annual costs associated with heavy fuel oil
purchases and other related activities, and the amount of funds
pledged by other donor nations and organizations to support KEDO
activities on a per country basis.
TITLE III—MILITARY ASSISTANCE
FUNDS APPROPRIATED

TO THE

PRESIDENT

INTERNATIONAL MILITARY EDUCATION AND TRAINING

For necessary expenses to carry out the provisions of section
541 of the Foreign Assistance Act of 1961, $43,475,000: Provided,
That none of the funds appropriated under this heading shall be
available for Zaire and Guatemala: Provided further, That funds
appropriated under this heading for grant financed military education and training for Indonesia may only be available for expanded
international military education and training.
FOREIGN MILITARY FINANCING PROGRAM

For expenses necessary for grants to enable the President to
carry out the provisions of section 23 of the Arms Export Control
Act, $3,164,000,000: Provided, That of the funds appropriated by
this paragraph not less than $1,800,000,000 shall be available for
grants only for Israel, and not less than $1,300,000,000 shall be
available for grants only for Egypt: Provided further, That the
funds appropriated by this paragraph for Israel shall be disbursed
within thirty days of enactment of this Act or by October 31,
1996, whichever is later: Provided further, That to the extent that
the Government of Israel requests that funds be used for such
purposes, grants made available for Israel by this paragraph shall,
as agreed by Israel and the United States, be available for advanced
weapons systems, of which not less than $475,000,000 shall be
available for the procurement in Israel of defense articles and

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–136

defense services, including research and development: Provided further, That of the funds made available under this paragraph,
$30,000,000 shall be available for assistance on a grant basis for
Poland, Hungary, and the Czech Republic to carry out title II
of Public Law 103–477 and section 585 of Public Law 104–107:
Provided further, That funds made available under this paragraph
shall be nonrepayable notwithstanding any requirement in section
23 of the Arms Export Control Act: Provided further, That, for
the purpose only of providing support for NATO expansion and
the Warsaw Initiative Program, of the funds appropriated by this
Act under the headings ‘‘Assistance for Eastern Europe and the
Baltic States’’ and ‘‘Assistance for the New Independent States
of the Former Soviet Union’’, up to a total of $7,000,000 may
be transferred, notwithstanding any other provision of law, to the
funds appropriated under this paragraph: Provided further, That
none of the funds made available under this heading shall be
available for any non-NATO country participating in the Partnership for Peace Program except through the regular notification
procedures of the Committees on Appropriations.
For the cost, as defined in section 502 of the Congressional
Budget Act of 1974, of direct loans authorized by section 23 of
the Arms Export Control Act as follows: cost of direct loans,
$60,000,000: Provided, That these funds are available to subsidize
gross obligations for the principal amount of direct loans of not
to exceed $540,000,000: Provided further, That the rate of interest
charged on such loans shall be not less than the current average
market yield on outstanding marketable obligations of the United
States of comparable maturities: Provided further, That of the funds
appropriated under this paragraph $20,000,000 shall be made available to Poland, Hungary, and the Czech Republic: Provided further,
That funds appropriated under this heading shall be made available
for Greece and Turkey only on a loan basis, and the principal
amount of direct loans for each country shall not exceed the following: $122,500,000 only for Greece and $175,000,000 only for Turkey.
None of the funds made available under this heading shall
be available to finance the procurement of defense articles, defense
services, or design and construction services that are not sold by
the United States Government under the Arms Export Control
Act unless the foreign country proposing to make such procurements
has first signed an agreement with the United States Government
specifying the conditions under which such procurements may be
financed with such funds: Provided, That all country and funding
level increases in allocations shall be submitted through the regular
notification procedures of section 515 of this Act: Provided further,
That funds made available under this heading shall be obligated
upon apportionment in accordance with paragraph (5)(C) of title
31, United States Code, section 1501(a): Provided further, That
none of the funds appropriated under this heading shall be available
for Zaire, Sudan, Liberia, and Guatemala: Provided further, That
funds made available under this heading may be used, notwithstanding any other provision of law, for activities related to the
clearance of landmines and unexploded ordnance, and may include
activities implemented through nongovernmental and international
organizations: Provided further, That only those countries for which
assistance was justified for the ‘‘Foreign Military Sales Financing
Program’’ in the fiscal year 1989 congressional presentation for
security assistance programs may utilize funds made available

110 STAT. 3009–137

PUBLIC LAW 104–208—SEPT. 30, 1996

under this heading for procurement of defense articles, defense
services or design and construction services that are not sold by
the United States Government under the Arms Export Control
Act: Provided further, That, subject to the regular notification procedures of the Committees on Appropriations, funds made available
under this heading for the cost of direct loans may also be used
to supplement the funds available under this heading for grants,
and funds made available under this heading for grants may also
be used to supplement the funds available under this heading
for the cost of direct loans: Provided further, That funds appropriated under this heading shall be expended at the minimum
rate necessary to make timely payment for defense articles and
services: Provided further, That not more than $23,250,000 of the
funds appropriated under this heading may be obligated for necessary expenses, including the purchase of passenger motor vehicles
for replacement only for use outside of the United States, for the
general costs of administering military assistance and sales: Provided further, That not more than $355,000,000 of funds realized
pursuant to section 21(e)(1)(A) of the Arms Export Control Act
may be obligated for expenses incurred by the Department of
Defense during fiscal year 1997 pursuant to section 43(b) of the
Arms Export Control Act, except that this limitation may be
exceeded only through the regular notification procedures of the
Committees on Appropriations.
TITLE IV—MULTILATERAL ECONOMIC ASSISTANCE
FUNDS APPROPRIATED TO THE PRESIDENT
INTERNATIONAL FINANCIAL INSTITUTIONS
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 United
States contribution to the Global Environment Facility (GEF),
$35,000,000, to remain available until September 30, 1998.
CONTRIBUTION TO THE INTERNATIONAL DEVELOPMENT ASSOCIATION

For payment to the International Development Association by
the Secretary of the Treasury, $700,000,000, for the United States
contribution to the tenth replenishment, to remain available until
expended: Provided, That none of the funds may be obligated before
March 1, 1997: Provided further, That not less than twenty days
before such funds are obligated, the Secretary of the Treasury
shall submit a report to the Committees on Appropriations on
his efforts to reach agreement with the other IDA–11 donors, including at the February 1997 IDA–11 donors review meeting, that
the procurement restrictions in the Interim Trust Fund will be
lifted.
CONTRIBUTION TO THE INTERNATIONAL FINANCE CORPORATION

For payment to the International Finance Corporation by the
Secretary of the Treasury, $6,656,000, for the United States share
of the increase in subscriptions to capital stock, to remain available
until expended.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–138

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 the paidin share portion of the increase in capital stock, $25,610,667, and
for the United States share of the increase in the resources of
the Fund for Special Operations, $10,000,000, to remain available
until expended.
LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

The United States Governor of the Inter-American Development
Bank may subscribe without fiscal year limitation to the callable
capital portion of the United States share of such capital stock
in an amount not to exceed $1,503,718,910.
CONTRIBUTION TO THE ENTERPRISE FOR THE AMERICAS
MULTILATERAL INVESTMENT FUND

For payment to the Enterprise for the Americas Multilateral
Investment Fund by the Secretary of the Treasury, for the United
States contribution to the Fund to be administered by the InterAmerican Development Bank, $27,500,000 to remain available until
expended.
CONTRIBUTION TO THE ASIAN DEVELOPMENT BANK

For payment to the Asian Development Bank by the Secretary
of the Treasury for the United States share of the paid-in portion
of the increase in capital stock, $13,221,596, to remain available
until expended.
LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

The United States Governor of the Asian Development Bank
may subscribe without fiscal year limitation to the callable capital
portion of the United States share of such capital stock in an
amount not to exceed $647,858,204.
CONTRIBUTION TO THE ASIAN DEVELOPMENT FUND

For the United States contribution by the Secretary of the
Treasury to the increases in resources of the Asian Development
Fund, as authorized by the Asian Development Bank Act, as amended (Public Law 89–369), $100,000,000, to remain available until
expended.
CONTRIBUTION TO THE EUROPEAN BANK FOR RECONSTRUCTION AND
DEVELOPMENT

For payment to the European Bank for Reconstruction and
Development by the Secretary of the Treasury, $11,916,447, for
the United States share of the paid-in share portion of the initial
capital subscription, to remain available until expended.
LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

The United States Governor of the European Bank for
Reconstruction and Development may subscribe without fiscal year

110 STAT. 3009–139

PUBLIC LAW 104–208—SEPT. 30, 1996

limitation to the callable capital portion of the United States share
of such capital stock in an amount not to exceed $27,805,043.
NORTH AMERICAN DEVELOPMENT BANK
For payment to the North American Development Bank by
the Secretary of the Treasury, for the United States share of the
paid-in portion of the capital stock, $56,000,000, to remain available
until expended.
LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

The United States Governor of the North American Development Bank may subscribe without fiscal year limitation to the
callable capital portion of the United States share of the capital
stock of the North American Development Bank in an amount
not to exceed $318,750,000.
INTERNATIONAL ORGANIZATIONS AND PROGRAMS

For necessary expenses to carry out the provisions of section
301 of the Foreign Assistance Act of 1961, and of section 2 of
the United Nations Environment Program Participation Act of 1973,
$169,950,000: Provided, That none of the funds appropriated under
this heading shall be made available for the United Nations Fund
for Science and Technology: Provided further, That none of the
funds appropriated under this heading that are made available
to the United Nations Population Fund (UNFPA) shall be made
available for activities in the People’s Republic of China: Provided
further, That not more than $25,000,000 of the funds appropriated
under this heading may be made available to the UNFPA: Provided
further, That not more than one-half of this amount may be provided
to UNFPA before March 1, 1997, and that no later than February
15, 1997, the Secretary of State shall submit a report to the Committees on Appropriations indicating the amount UNFPA is budgeting
for the People’s Republic of China in 1997: Provided further, That
any amount UNFPA plans to spend in the People’s Republic of
China in 1997 shall be deducted from the amount of funds provided
to UNFPA after March 1, 1997, pursuant to the previous provisos:
Provided further, That with respect to any funds appropriated under
this heading that are made available to UNFPA, UNFPA shall
be required to maintain such funds in a separate account and
not commingle them with any other funds: Provided further, That
none of the funds appropriated under this heading may be made
available to the Korean Peninsula Energy Development Organization (KEDO) or the International Atomic Energy Agency (IAEA).
TITLE V—GENERAL PROVISIONS
OBLIGATIONS DURING LAST MONTH OF AVAILABILITY

SEC. 501. Except for the appropriations entitled ‘‘International
Disaster Assistance’’, and ‘‘United States Emergency Refugee and
Migration Assistance Fund’’, not more than 15 per centum of any
appropriation item made available by this Act shall be obligated
during the last month of availability.

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110 STAT. 3009–140

PROHIBITION OF BILATERAL FUNDING FOR INTERNATIONAL FINANCIAL
INSTITUTIONS

SEC. 502. None of the funds contained in title II of this Act
may be used to carry out the provisions of section 209(d) of the
Foreign Assistance Act of 1961.
LIMITATION ON RESIDENCE EXPENSES

SEC. 503. Of the funds appropriated or made available pursuant
to this Act, not to exceed $126,500 shall be for official residence
expenses of the Agency for International Development during the
current fiscal year: Provided, That appropriate steps shall be taken
to assure that, to the maximum extent possible, United Statesowned foreign currencies are utilized in lieu of dollars.
LIMITATION ON EXPENSES

SEC. 504. Of the funds appropriated or made available pursuant
to this Act, not to exceed $5,000 shall be for entertainment expenses
of the Agency for International Development during the current
fiscal year.
LIMITATION ON REPRESENTATIONAL ALLOWANCES

SEC. 505. Of the funds appropriated or made available pursuant
to this Act, not to exceed $95,000 shall be available for representation allowances for the Agency for International Development during the current fiscal year: 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: Provided further, That of the funds made available by this Act for
general costs of administering military assistance and sales under
the heading ‘‘Foreign Military Financing Program’’, not to exceed
$2,000 shall be available for entertainment expenses and not to
exceed $50,000 shall be available for representation allowances:
Provided further, That of the funds made available by this Act
under the heading ‘‘International Military Education and Training’’,
not to exceed $50,000 shall be available for entertainment allowances: Provided further, That of the funds made available by this
Act for the Inter-American Foundation, not to exceed $2,000 shall
be available for entertainment and representation allowances: Provided further, That of the funds made available by this Act for
the Peace Corps, not to exceed a total of $4,000 shall be available
for entertainment expenses: Provided further, That of the funds
made available by this Act under the heading ‘‘Trade and Development Agency’’, not to exceed $2,000 shall be available for representation and entertainment allowances.
PROHIBITION ON FINANCING NUCLEAR GOODS

SEC. 506. None of the funds appropriated or made available
(other than funds for ‘‘Nonproliferation, Antiterrorism, Demining
and Related Programs’’) pursuant to this Act, for carrying out
the Foreign Assistance Act of 1961, may be used, except for purposes
of nuclear safety, to finance the export of nuclear equipment, fuel,
or technology.

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PROHIBITION AGAINST DIRECT FUNDING FOR CERTAIN COUNTRIES

SEC. 507. 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 Cuba, Iraq, Libya,
North Korea, Iran, Sudan, or Syria: Provided, That for purposes
of this section, the prohibition on obligations or expenditures shall
include direct loans, credits, insurance and guarantees of the
Export-Import Bank or its agents.
MILITARY COUPS

SEC. 508. None of the funds appropriated or otherwise made
available pursuant to this Act shall be obligated or expended to
finance directly any assistance to any country whose duly elected
Head of Government is deposed by military coup or decree: Provided, That assistance may be resumed to such country if the
President determines and reports to the Committees on Appropriations that subsequent to the termination of assistance a democratically elected government has taken office.
TRANSFERS BETWEEN ACCOUNTS

SEC. 509. None of the funds made available by this Act may
be obligated under an appropriation account to which they were
not appropriated, except for transfers specifically provided for in
this Act, unless the President, prior to the exercise of any authority
contained in the Foreign Assistance Act of 1961 to transfer funds,
consults with and provides a written policy justification to the
Committees on Appropriations of the House of Representatives and
the Senate.
DEOBLIGATION/REOBLIGATION AUTHORITY

SEC. 510. (a) Amounts certified pursuant to section 1311 of
the Supplemental Appropriations Act, 1955, as having been obligated against appropriations heretofore made under the authority
of the Foreign Assistance Act of 1961 for the same general purpose
as any of the headings under title II of this Act are, if deobligated,
hereby continued available for the same period as the respective
appropriations under such headings or until September 30, 1997,
whichever is later, and for the same general purpose, and for
countries within the same region as originally obligated: Provided,
That the Appropriations Committees of both Houses of the Congress
are notified fifteen days in advance of the reobligation of such
funds in accordance with regular notification procedures of the
Committees on Appropriations.
(b) Obligated balances of funds appropriated to carry out section
23 of the Arms Export Control Act as of the end of the fiscal
year immediately preceding the current fiscal year are, if
deobligated, hereby continued available during the current fiscal
year for the same purpose under any authority applicable to such
appropriations under this Act: Provided, That the authority of this
subsection may not be used in fiscal year 1997.
AVAILABILITY OF FUNDS

SEC. 511. No part of any appropriation contained in this Act
shall remain available for obligation after the expiration of the

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–142

current fiscal year unless expressly so provided in this Act: Provided, That funds appropriated for the purposes of chapters 1,
8, and 11 of part I, section 667, and chapter 4 of part II of
the Foreign Assistance Act of 1961, as amended, and funds provided
under the heading ‘‘Assistance for Eastern Europe and the Baltic
States’’, shall remain available until expended if such funds are
initially obligated before the expiration of their respective periods
of availability contained in this Act: Provided further, That, notwithstanding any other provision of this Act, any funds made available
for the purposes of chapter 1 of part I and chapter 4 of part
II of the Foreign Assistance Act of 1961 which are allocated or
obligated for cash disbursements in order to address balance of
payments or economic policy reform objectives, shall remain available until expended: Provided further, That the report required
by section 653(a) of the Foreign Assistance Act of 1961 shall designate for each country, to the extent known at the time of submission of such report, those funds allocated for cash disbursement
for balance of payment and economic policy reform purposes.
LIMITATION ON ASSISTANCE TO COUNTRIES IN DEFAULT

SEC. 512. 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: Provided, That this
section and section 620(q) of the Foreign Assistance Act of 1961
shall not apply to funds made available in this Act or during
the current fiscal year for Nicaragua, and for any narcotics-related
assistance for Colombia, Bolivia, and Peru authorized by the Foreign
Assistance Act of 1961 or the Arms Export Control Act.
COMMERCE AND TRADE

SEC. 513. (a) None of the funds appropriated or made available
pursuant to this Act for direct assistance and none of the funds
otherwise made available pursuant to this Act to the Export-Import
Bank and the Overseas Private Investment Corporation shall be
obligated or expended to finance any loan, any assistance or any
other financial commitments for establishing or expanding production of any commodity for export by any country other than the
United States, if the commodity is likely to be in surplus on world
markets at the time the resulting productive capacity is expected
to become operative and if the assistance will cause substantial
injury to United States producers of the same, similar, or competing
commodity: Provided, That such prohibition shall not apply to the
Export-Import Bank if in the judgment of its Board of Directors
the benefits to industry and employment in the United States
are likely to outweigh the injury to United States producers of
the same, similar, or competing commodity, and the Chairman
of the Board so notifies the Committees on Appropriations.
(b) None of the funds appropriated by this or any other Act
to carry out chapter 1 of part I of the Foreign Assistance Act
of 1961 shall be available for any testing or breeding feasibility
study, variety improvement or introduction, consultancy, publication, conference, or training in connection with the growth or
production in a foreign country of an agricultural commodity for

110 STAT. 3009–143

PUBLIC LAW 104–208—SEPT. 30, 1996

export which would compete with a similar commodity grown or
produced in the United States: Provided, That this subsection shall
not prohibit—
(1) activities designed to increase food security in developing countries where such activities will not have a significant
impact in the export of agricultural commodities of the United
States; or
(2) research activities intended primarily to benefit American producers.
SURPLUS COMMODITIES

22 USC 262h
note.

SEC. 514. The Secretary of the Treasury shall instruct the
United States Executive Directors of the International Bank for
Reconstruction and Development, the International Development
Association, the International Finance Corporation, the Inter-American Development Bank, the International Monetary Fund, the
Asian Development Bank, the Inter-American Investment Corporation, the North American Development Bank, the European Bank
for Reconstruction and Development, the African Development
Bank, and the African Development Fund to use the voice and
vote of the United States to oppose any assistance by these institutions, using funds appropriated or made available pursuant to this
Act, for the production or extraction of any commodity or mineral
for export, if it is in surplus on world markets and if the assistance
will cause substantial injury to United States producers of the
same, similar, or competing commodity.
NOTIFICATION REQUIREMENTS

SEC. 515. For the purposes of providing the Executive Branch
with the necessary administrative flexibility, none of the funds
made available under this Act for ‘‘Child Survival and Disease
Programs Fund’’, ‘‘Development Assistance’’, ‘‘Debt restructuring’’,
‘‘International organizations and programs’’, ‘‘Trade and Development Agency’’, ‘‘International narcotics control’’, ‘‘Assistance for
Eastern Europe and the Baltic States’’, ‘‘Assistance for the New
Independent States of the Former Soviet Union’’, ‘‘Economic Support
Fund’’, ‘‘Peacekeeping operations’’, ‘‘Operating expenses of the
Agency for International Development’’, ‘‘Operating expenses of the
Agency for International Development Office of Inspector General’’,
‘‘Nonproliferation, anti-terrorism, demining and related programs’’,
‘‘Foreign Military Financing Program’’, ‘‘International military education and training’’, ‘‘Inter-American Foundation’’, ‘‘African Development Foundation’’, ‘‘Peace Corps’’, ‘‘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 these specific headings
unless the Appropriations Committees of both Houses of Congress
are previously notified fifteen days in advance: Provided, That
the President shall not enter into any commitment of funds appropriated for the purposes of section 23 of the Arms Export Control
Act for the provision of major defense equipment, other than conventional ammunition, or other major defense items defined to be
aircraft, ships, missiles, or combat vehicles, not previously justified
to Congress or 20 per centum in excess of the quantities justified
to Congress unless the Committees on Appropriations are notified

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–144

fifteen days in advance of such commitment: Provided further, That
this section shall not apply to any reprogramming for an activity,
program, or project under chapter 1 of part I of the Foreign Assistance Act of 1961 of less than 10 per centum of the amount previously
justified to the Congress for obligation for such activity, program,
or project for the current fiscal year: Provided further, That the
requirements of this section or any similar provision of this Act
or any other Act, including any prior Act requiring notification
in accordance with the regular notification procedures of the
Committees on Appropriations, may be waived if failure to do
so would pose a substantial risk to human health or welfare: Provided further, That in case of any such waiver, notification to
the Congress, or the appropriate congressional committees, shall
be provided as early as practicable, but in no event later than
three days after taking the action to which such notification requirement was applicable, in the context of the circumstances necessitating such waiver: Provided further, That any notification provided
pursuant to such a waiver shall contain an explanation of the
emergency circumstances.
Drawdowns made pursuant to section 506(a)(2) of the Foreign
Assistance Act of 1961 shall be subject to the regular notification
procedures of the Committees on Appropriations.
LIMITATION ON AVAILABILITY OF FUNDS FOR INTERNATIONAL
ORGANIZATIONS AND PROGRAMS

SEC. 516. Notwithstanding any other provision of law or of
this Act, none of the funds provided for ‘‘International Organizations
and Programs’’ shall be available for the United States proportionate share, in accordance with section 307(c) of the Foreign
Assistance Act of 1961, for any programs identified in section 307,
or for Libya, Iran, or, at the discretion of the President, Communist
countries listed in section 620(f) of the Foreign Assistance Act
of 1961, as amended: Provided, That, subject to the regular notification procedures of the Committees on Appropriations, funds appropriated under this Act or any previously enacted Act making appropriations for foreign operations, export financing, and related programs, which are returned or not made available for organizations
and programs because of the implementation of this section or
any similar provision of law, shall remain available for obligation
through September 30, 1998.
ECONOMIC SUPPORT FUND ASSISTANCE FOR ISRAEL

SEC. 517. The Congress finds that progress on the peace process
in the Middle East is vitally important to United States security
interests in the region. The Congress recognizes that, in fulfilling
its obligations under the Treaty of Peace Between the Arab Republic
of Egypt and the State of Israel, done at Washington on March
26, 1979, Israel incurred severe economic burdens. Furthermore,
the Congress recognizes that an economically and militarily secure
Israel serves the security interests of the United States, for a
secure Israel is an Israel which has the incentive and confidence
to continue pursuing the peace process. Therefore, the Congress
declares that, subject to the availability of appropriations, it is
the policy and the intention of the United States that the funds
provided in annual appropriations for the Economic Support Fund
which are allocated to Israel shall not be less than the annual

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PUBLIC LAW 104–208—SEPT. 30, 1996

debt repayment (interest and principal) from Israel to the United
States Government in recognition that such a principle serves
United States interests in the region.
PROHIBITION ON FUNDING FOR ABORTIONS AND INVOLUNTARY
STERILIZATION

SEC. 518. None of the funds made available to carry out part
I of the Foreign Assistance Act of 1961, as amended, may be
used to pay for the performance of abortions as a method of family
planning or to motivate or coerce any person to practice abortions.
None of the funds made available to carry out part I of the Foreign
Assistance Act of 1961, as amended, may be used to pay for the
performance of involuntary sterilization as a method of family planning or to coerce or provide any financial incentive to any person
to undergo sterilizations. None of the funds made available to
carry out part I of the Foreign Assistance Act of 1961, as amended,
may be used to pay for any biomedical research which relates
in whole or in part, to methods of, or the performance of, abortions
or involuntary sterilization as a means of family planning. None
of the funds made available to carry out part I of the Foreign
Assistance Act of 1961, as amended, may be obligated or expended
for any country or organization if the President certifies that the
use of these funds by any such country or organization would
violate any of the above provisions related to abortions and involuntary sterilizations: Provided, That none of the funds made available
under this Act may be used to lobby for or against abortion.
AUTHORIZATION FOR POPULATION PLANNING

SEC. 518A. (a) None of the funds made available in title II
of this Act for population planning activities or other population
assistance pursuant to section 104(b) of the Foreign Assistance
Act or any other provision of law may be obligated or expended
prior to July 1, 1997.
(b) Not to exceed $385,000,000 of the funds appropriated in
title II of this Act may be made available for population planning
activities or other population assistance.
(c) Such funds may be apportioned only on a monthly basis,
and such monthly apportionments may not exceed 8 percent of
the total available for such activities.
(d) Not later than February 1, 1997, the President shall submit
a finding to the Congress regarding the impact of the limitation
on obligations imposed by subsection (a) of this section on the
proper functioning of the population planning program. If such
Presidential finding indicates that the limitation is having a negative impact on the proper functioning of the population planning
program, funds for population planning activities and other population assistance referred to in subsection (a) may be made available
beginning March 1, 1997, notwithstanding the July 1, 1997, limitation set forth in subsection (a), if the Congress approves such
finding by adoption of a joint resolution of approval not later than
February 28, 1997, in accordance with subsection (e).
(e) CONGRESSIONAL REVIEW PROCEDURE.—
(1) This subsection is enacted by Congress—
(A) as an exercise of the rulemaking power of the
House of Representatives and the Senate, respectively, and
as such it is deemed a part of the rules of each House,

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–146

respectively, but applicable only with respect to the procedure to be followed in that House in the case of resolutions
described by paragraph (2) of this subsection; and it supersedes other rules only to the extent that it is inconsistent
therewith; and
(B) with full recognition of the constitutional right
of either House to change the rules (so far as those rules
relate to the procedure of that House) at any time, in
the same manner, and to the same extent as in the case
of any other rule of such House.
(2) For purposes of this section, the term ‘‘resolution’’ means
a joint resolution, the text of which is as follows: ‘‘That the
House of Representatives and Senate approve the Presidential
finding, submitted to the Congress on XXXXX, that the limitation on obligations imposed by section 518A(a) of the Foreign
Operations, Export Financing, and Related Programs Appropriations Act, 1997, is having a negative impact on the proper
functioning of the population planning program.’’. The blank
space therein shall be filled with the date on which the President submits his finding to the House of Representatives and
the Senate.
(3) On the day on which the President submits a finding
under this section to the Congress, a joint resolution described
in paragraph (2) shall be introduced (by request) in the House
by the majority leader of the House, for himself and the minority leader of the House, or by Members of the House designated
by the majority leader and minority leader of the House; and
shall be introduced (by request) in the Senate by the majority
leader of the Senate, for himself and the minority leader of
the Senate, or by Members of the Senate designated by the
majority leader and minority leader of the Senate. If either
House is not in session on the day on which the President
submits such finding, the resolution shall be introduced in
that House, as provided in the preceding sentence, on the
first day thereafter on which that House is in session. A resolution once introduced in the House with respect to a Presidential
finding under this section shall be referred to 1 or more committees (and all resolutions with respect to the same Presidential
finding shall be referred to the same committee or committees)
by the Speaker of the House of Representatives. A resolution
once introduced in the Senate with respect to a Presidential
finding under this section shall be referred to the appropriate
committee (and all resolutions with respect to the same Presidential finding shall be referred to the same committee) by
the President of the Senate.
(4) No amendment to a resolution introduced under this
section shall be in order in either the House of Representatives
or the Senate; and no motion to suspend the application of
this subsection shall be in order in either House, nor shall
it be in order in either House for the presiding officer to
entertain a request to suspend the application of this subsection
by unanimous consent.
(5)(A) If any committee to which a resolution with respect
to a Presidential finding under this section has been referred
has not reported it at the end of 5 calendar days after its
introduction, such committee shall be automatically discharged
from further consideration of the resolution and it shall be

110 STAT. 3009–147

PUBLIC LAW 104–208—SEPT. 30, 1996

placed on the appropriate calendar. A vote on final passage
of the resolution, shall be taken in each House on or before
February 28, 1997. If prior to the passage by 1 House of
a resolution of that House under this section, that House
receives the same resolution from the other House, then—
(i) the procedure in that House shall be the same
as if no resolution had been received from the other House,
but
(ii) the vote on final passage shall be on the resolution
of the other House.
(6)(A) A motion in the House of Representatives to proceed
to the consideration of a resolution under this section shall
be highly privileged and not debatable. An amendment to the
motion shall not be in order, nor shall it be in order to move
to reconsider the vote by which the motion is agreed to or
disagreed to.
(B) Debate in the House of Representatives on the resolution described in paragraph (2) of this subsection shall be
limited to not more than 2 hours, which shall be divided equally
between those favoring and those opposing such resolution.
A motion to further limit debate shall not be debatable. It
shall not be in order to move to recommit a resolution or
to move to reconsider the vote by which such resolution was
agreed to or disagreed to.
(C) Appeals from the decision of the Chair relating to
the application of the rules of the House of Representatives
to the procedures relating to a resolution under this section
shall be decided without debate.
(D) Except to the extent specifically provided in preceding
provisions of this subsection, consideration in the House of
Representatives of a resolution under this subsection shall be
governed by the rules of the House of Representatives
applicable to other resolutions in similar circumstances.
(7)(A) A motion in the Senate to proceed to the consideration of a resolution under this section shall not debatable.
It shall not be in order to move to reconsider the vote by
which the motion is agreed to or disagreed to.
(B) Debate in the Senate on the resolution described in
paragraph (2) of this subsection, and all debatable motions
and appeals in connection therewith, shall be limited to not
more than 2 hours. The time shall be equally divided between,
and controlled by, the mover and the manager of the resolution,
except that in the event the manager of the resolution is
in favor of any such motion or appeal, the time in opposition
thereto shall be controlled by the minority leader or his designee. Such leaders, or either of them, may, from time under
their control on the passage of a resolution, allot additional
time to any Senator during the consideration of any debatable
motion or appeal.
(C) A motion in the Senate to further limit debate is
not debatable. A motion to recommit a resolution is not in
order.
REPORTING REQUIREMENT

SEC. 519. The President shall submit to the Committees on
Appropriations the reports required by section 25(a)(1) of the Arms
Export Control Act.

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110 STAT. 3009–148

SPECIAL NOTIFICATION REQUIREMENTS

SEC. 520. None of the funds appropriated in this Act shall
be obligated or expended for Colombia, Guatemala (except that
this provision shall not apply to development assistance for Guatemala), Dominican Republic, Haiti, Liberia, Pakistan, Peru, Serbia,
Sudan, or Zaire except as provided through the regular notification
procedures of the Committees on Appropriations.
DEFINITION OF PROGRAM, PROJECT, AND ACTIVITY

SEC. 521. For the purpose of this Act, ‘‘program, project, and
activity’’ shall be defined at the Appropriations Act account level
and shall include all Appropriations and Authorizations Acts earmarks, ceilings, and limitations with the exception that for the
following accounts: Economic Support Fund and Foreign Military
Financing Program, ‘‘program, project, and activity’’ shall also be
considered to include country, regional, and central program level
funding within each such account; for the development assistance
accounts of the Agency for International Development ‘‘program,
project, and activity’’ shall also be considered to include central
program level funding, either as (1) justified to the Congress, or
(2) allocated by the executive branch in accordance with a report,
to be provided to the Committees on Appropriations within thirty
days of enactment of this Act, as required by section 653(a) of
the Foreign Assistance Act of 1961.
CHILD SURVIVAL AND AIDS ACTIVITIES

SEC. 522. Up to $8,000,000 of the funds made available by
this Act for assistance for family planning, health, child survival,
and AIDS, may be used to reimburse United States Government
agencies, agencies of State governments, institutions of higher
learning, and private and voluntary organizations for the full cost
of individuals (including for the personal services of such individuals) detailed or assigned to, or contracted by, as the case may
be, the Agency for International Development for the purpose of
carrying out family planning activities, child survival activities
and activities relating to research on, and the treatment and control
of acquired immune deficiency syndrome in developing countries:
Provided, That funds appropriated by this Act that are made available for child survival activities or activities relating to research
on, and the treatment and control of, acquired immune deficiency
syndrome may be made available notwithstanding any provision
of law that restricts assistance to foreign countries: Provided further, That funds appropriated by this Act that are made available
for family planning activities may be made available notwithstanding section 512 of this Act and section 620(q) of the Foreign Assistance Act of 1961.
PROHIBITION AGAINST INDIRECT FUNDING TO CERTAIN COUNTRIES

SEC. 523. None of the funds appropriated or otherwise made
available pursuant to this Act shall be obligated to finance indirectly
any assistance or reparations to Cuba, Iraq, Libya, Iran, Syria,
North Korea, or the People’s Republic of China, unless the President
of the United States certifies that the withholding of these funds
is contrary to the national interest of the Untied States.

110 STAT. 3009–149

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RECIPROCAL LEASING

22 USC 2796.

SEC. 524. Section 61(a) of the Arms Export Control Act is
amended by striking out ‘‘1996’’ and inserting in lieu thereof ‘‘1997’’.
NOTIFICATION ON EXCESS DEFENSE EQUIPMENT

SEC. 525. Prior to providing excess Department of Defense
articles in accordance with section 516(a) of the Foreign Assistance
Act of 1961, the Department of Defense shall notify the Committees
on Appropriations to the same extent and under the same conditions
as are other committees pursuant to subsection (c) of that section:
Provided, That before issuing a letter of offer to sell excess defense
articles under the Arms Export Control Act, the Department of
Defense shall notify the Committees on Appropriations in accordance with the regular notification procedures of such Committees:
Provided further, That such Committees shall also be informed
of the original acquisition cost of such defense articles.
AUTHORIZATION REQUIREMENT

SEC. 526. Funds appropriated by this Act may be obligated
and expended notwithstanding section 10 of Public Law 91–672
and section 15 of the State Department Basic Authorities Act of
1956.
PROHIBITION ON BILATERAL ASSISTANCE TO TERRORIST COUNTRIES

SEC. 527. (a) Notwithstanding any other provision of law, funds
appropriated for bilateral assistance under any heading of this
Act and funds appropriated under any such heading in a provision
of law enacted prior to enactment of this Act, shall not be made
available to any country which the President determines—
(1) grants sanctuary from prosecution to any individual
or group which has committed an act of international terrorism,
or
(2) otherwise supports international terrorism.
(b) The President may waive the application of subsection
(a) to a country if the President determines that national security
or humanitarian reasons justify such waiver. The President shall
publish each waiver in the Federal Register and, at least fifteen
days before the waiver takes effect, shall notify the Committees
on Appropriations of the waiver (including the justification for
the waiver) in accordance with the regular notification procedures
of the Committees on Appropriations.
COMMERCIAL LEASING OF DEFENSE ARTICLES

22 USC 2763
note.

SEC. 528. Notwithstanding any other provision of law, and
subject to the regular notification procedures of the Committees
on Appropriations, the authority of section 23(a) of the Arms Export
Control Act may be used to provide financing to Israel, Egypt
and NATO and major non-NATO allies for the procurement by
leasing (including leasing with an option to purchase) of defense
articles from United States commercial suppliers, not including
Major Defense Equipment (other than helicopters and other types
of aircraft having possible civilian application), if the President
determines that there are compelling foreign policy or national
security reasons for those defense articles being provided by

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110 STAT. 3009–150

commercial lease rather than by government-to-government sale
under such Act.
COMPETITIVE INSURANCE

SEC. 528A. All Agency for International Development contracts
and solicitations, and subcontracts entered into under such contracts, shall include a clause requiring that United States insurance
companies have a fair opportunity to bid for insurance when such
insurance is necessary or appropriate.
STINGERS IN THE PERSIAN GULF REGION

SEC. 529. Except as provided in section 581 of the Foreign
Operations, Export Financing, and Related Programs Appropriations Act, 1990, the United States may not sell or otherwise make
available any Stingers to any country bordering the Persian Gulf
under the Arms Export Control Act or chapter 2 of part II of
the Foreign Assistance Act of 1961.
DEBT-FOR-DEVELOPMENT

SEC. 530. In order to enhance the continued participation of
nongovernmental organizations in economic assistance activities
under the Foreign Assistance Act of 1961, including endowments,
debt-for-development and debt-for-nature exchanges, a nongovernmental organization which is a grantee or contractor of the Agency
for International Development may place in interest bearing
accounts funds made available under this Act or prior Acts or
local currencies which accrue to that organization as a result of
economic assistance provided under title II of this Act and any
interest earned on such investment shall be used for the purpose
for which the assistance was provided to that organization.
SEPARATE ACCOUNTS

SEC. 531. (a) SEPARATE ACCOUNTS FOR LOCAL CURRENCIES.—
(1) If assistance is furnished to the government of a foreign country
under chapters 1 and 10 of part I or chapter 4 of part II of
the Foreign Assistance Act of 1961 under agreements which result
in the generation of local currencies of that country, the Administrator of the Agency for International Development shall—
(A) require that local currencies be deposited in a separate
account established by that government;
(B) enter into an agreement with that government which
sets forth—
(i) the amount of the local currencies to be generated,
and
(ii) the terms and conditions under which the currencies so deposited may be utilized, consistent with this
section; and
(C) establish by agreement with that government the
responsibilities of the Agency for International Development
and that government to monitor and account for deposits into
and disbursements from the separate account.
(2) USES OF LOCAL CURRENCIES.—As may be agreed upon with
the foreign government, local currencies deposited in a separate
account pursuant to subsection (a), or an equivalent amount of
local currencies, shall be used only—

22 USC 2359
note.

110 STAT. 3009–151

PUBLIC LAW 104–208—SEPT. 30, 1996

(A) to carry out chapters 1 or 10 of part I or chapter
4 of part II (as the case may be), for such purposes as—
(i) project and sector assistance activities, or
(ii) debt and deficit financing; or
(B) for the administrative requirements of the United
States Government.
(3) PROGRAMMING ACCOUNTABILITY.—The Agency for International Development shall take all necessary steps to ensure that
the equivalent of the local currencies disbursed pursuant to subsection (a)(2)(A) from the separate account established pursuant
to subsection (a)(1) are used for the purposes agreed upon pursuant
to subsection (a)(2).
(4) TERMINATION OF ASSISTANCE PROGRAMS.—Upon termination
of assistance to a country under chapters 1 or 10 of part I or
chapter 4 of part II (as the case may be), any unencumbered
balances of funds which remain in a separate account established
pursuant to subsection (a) shall be disposed of for such purposes
as may be agreed to by the government of that country and the
United States Government.
(5) CONFORMING AMENDMENTS.—The provisions of this subsection shall supersede the tenth and eleventh provisos contained
under the heading ‘‘Sub-Saharan Africa, Development Assistance’’
as included in the Foreign Operations, Export Financing, and
Related Programs Appropriations Act, 1989 and sections 531(d)
and 609 of the Foreign Assistance Act of 1961.
(6) REPORTING REQUIREMENT.—The Administrator of the
Agency for International Development shall report on an annual
basis as part of the justification documents submitted to the
Committees on Appropriations on the use of local currencies for
the administrative requirements of the United States Government
as authorized in subsection (a)(2)(B), and such report shall include
the amount of local currency (and United States dollar equivalent)
used and/or to be used for such purpose in each applicable country.
(b) SEPARATE ACCOUNTS FOR CASH TRANSFERS.—(1) If assistance is made available to the government of a foreign country,
under chapters 1 or 10 of part I or chapter 4 of part II of the
Foreign Assistance Act of 1961, as cash transfer assistance or
as nonproject sector assistance, that country shall be required to
maintain such funds in a separate account and not commingle
them with any other funds.
(2) APPLICABILITY OF OTHER PROVISIONS OF LAW.—Such funds
may be obligated and expended notwithstanding provisions of law
which are inconsistent with the nature of this assistance including
provisions which are referenced in the Joint Explanatory Statement
of the Committee of Conference accompanying House Joint Resolution 648 (H. Report No. 98–1159).
(3) NOTIFICATION.—At lest fifteen days prior to obligating any
such cash transfer or nonproject sector assistance, the President
shall submit a notification through the regular notification procedures of the Committees on Appropriations, which shall include
a detailed description of how the funds proposed to be made available will be used, with a discussion of the United States interests
that will be served by the assistance (including, as appropriate,
a description of the economic policy reforms that will be promoted
by such assistance).

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110 STAT. 3009–152

(4) EXEMPTION.—Nonproject sector assistance funds may be
exempt from the requirements of subsection (b)(1) only through
the notification procedures of the Committees on Appropriations.
COMPENSATION FOR UNITED STATES EXECUTIVE DIRECTORS TO
INTERNATIONAL FINANCING INSTITUTIONS

SEC. 532. (a) No funds appropriated by this Act may be made
as payment to any international financial institution while the
United States Executive Director to such institution is compensated
by the institution at a rate which, together with whatever compensation such Director receives from the United States, is 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 any alternate United States Director
to such institution is compensated by the institution 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.
(b) For purposes of this section, ‘‘international financial institutions’’ are: the International Bank for Reconstruction and Development, the Inter-American Development Bank, the Asian Development Bank, the Asian Development Fund, the African Development
Bank, the African Development Fund, the International Monetary
Fund, the North American Development Bank, and the European
Bank for Reconstruction and Development.
COMPLIANCE WITH UNITED NATIONS SANCTIONS AGAINST IRAQ

SEC. 533. (a) DENIAL OF ASSISTANCE.—None of the funds appropriated or otherwise made available pursuant to this Act to carry
out the Foreign Assistance Act of 1961 (including title IV of chapter
2 of part I, relating to the Overseas Private Investment Corporation)
or the Arms Export Control Act may be used to provide assistance
to any country that is not in compliance with the United Nations
Security Council sanctions against Iraq, Serbia or Montenegro
unless the President determines and so certifies to the Congress
that—
(1) such assistance is in the national interest of the United
States;
(2) such assistance will directly benefit the needy people
in that country; or
(3) the assistance to be provided will be humanitarian
assistance for foreign nationals who have fled Iraq and Kuwait.
(b) IMPORT SANCTIONS.—If the President considers that the
taking of such action would promote the effectiveness of the economic sanctions of the United Nations and the United States
imposed with respect to Iraq, Serbia, or Montenegro, as the case
may be, and is consistent with the national interest, the President
may prohibit, for such a period of time as he considers appropriate,
the importation into the United States of any or all products of
any foreign country that has not prohibited—
(1) the importation of products of Iraq, Serbia, or
Montenegro into its customs territory, and
(2) the export of its products to Iraq, Serbia, or Montenegro,
as the case may be.

50 USC 1701
note.

110 STAT. 3009–153

PUBLIC LAW 104–208—SEPT. 30, 1996

COMPETITIVE PRICING FOR SALES OF DEFENSE ARTICLES

22 USC 2762
note.

SEC. 533A. Direct costs associated with meeting a foreign customer’s additional or unique requirements will continue to be allowable under contracts under section 22(d) of the Arms Export Control
Act. Loadings applicable to such direct costs shall be permitted
at the same rates applicable to procurement of like items purchased
by the Department of Defense for its own use.
POW/MIA MILITARY DRAWDOWN

SEC. 534. (a) Notwithstanding any other provision of law, the
President may direct the drawdown, without reimbursement by
the recipient, of defense articles from the stocks of the Department
of Defense, defense services of the Department of Defense, and
military education and training, of an aggregate value not to exceed
$15,000,000 in fiscal year 1997, as may be necessary to carry
out subsection (b).
(b) Such defense articles, services and training may be provided
to Vietnam, Cambodia and Laos, under subsection (a) as the President determines are necessary to support efforts to locate and
repatriate members of the United States Armed Forces and civilians
employed directly or indirectly by the United States Government
who remain unaccounted for from the Vietnam War, and to ensure
the safety of United States Government personnel engaged in such
cooperative efforts and to support United States Department of
Defense-sponsored humanitarian projects associated with the POW/
MIA efforts. Any aircraft shall be provided under this section only
to Laos and only on a lease or loan basis, but may be provided
at no cost notwithstanding section 61 of the Arms Export Control
Act and may be maintained with defense articles, services and
training provided under this section.
(c) The President shall, within sixty days of the end of any
fiscal year in which the authority of subsection (a) is exercised,
submit a report to the Congress which identifies the articles, services, and training drawn down under this section.
MEDITERRANEAN EXCESS DEFENSE ARTICLES

22 USC 2321j
note.

SEC. 535. For the four-year period beginning on October 1,
1996, the President shall ensure that excess defense articles will
be made available under section 516 and 519 of the Foreign Assistance Act of 1961 consistent with the manner in which the President
made available excess defense articles under those sections during
the four-year period that began on October 1, 1992, pursuant to
section 573(e) of the Foreign Operations, Export Financing, Related
Programs Appropriations Act, 1990.
CASH FLOW FINANCING

SEC. 536. For each country that has been approved for cash
flow financing (as defined in section 25(d) of the Arms Export
Control Act, as added by section 112(b) of Public Law 99–83) under
the Foreign Military Financing Program, any Letter of Offer and
Acceptance or other purchase agreement, or any amendment thereto, for a procurement in excess of $100,000,000 that is to be financed
in whole or in part with funds made available under this Act
shall be submitted through the regular notification procedures to
the Committees on Appropriations.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–154

AUTHORITIES FOR THE PEACE CORPS, THE INTER-AMERICAN
FOUNDATION AND THE AFRICAN DEVELOPMENT FOUNDATION

SEC. 537. Unless expressly provided to the contrary, provisions
of this or any other Act, including provisions contained in prior
Acts authorizing or making appropriations for foreign operations,
export financing, and related programs, shall not be construed
to prohibit activities authorized by or conducted under the Peace
Corps Act, the Inter-American Foundation Act, or the African Development Foundation Act. The appropriate agency shall promptly
report to the Committees on Appropriations whenever it is conducting activities or is proposing to conduct activities in a country
for which assistance is prohibited.
IMPACT ON JOBS IN THE UNITED STATES

SEC. 538. None of the funds appropriated by this Act may
be obligated or expended to provide—
(a) any financial incentive to a business enterprise currently located in the United States for the purpose of inducing
such an enterprise to relocate outside the United States if
such incentive or inducement is likely to reduce the number
of employees of such business enterprise in the United States
because United States production is being replaced by such
enterprise outside the United States;
(b) assistance for the purpose of establishing or developing
in a foreign country any export processing zone or designated
area in which the tax, tariff, labor, environment, and safety
laws of that country do not apply, in part or in whole, to
activities carried out within that zone or area, unless the President determines and certifies that such assistance is not likely
to cause a loss of jobs within the United States; or
(c) assistance for any project or activity that contributes
to the violation of internationally recognized workers rights,
as defined in section 502(a)(4) of the Trade Act of 1974, of
workers in the recipient country, including any designated zone
or area in that country: Provided, That in recognition that
the application of this subsection should be commensurate with
the level of development of the recipient country and sector,
the provisions of this subsection shall not preclude assistance
for the informal sector in such country, micro and small-scale
enterprise, and smallholder agriculture.
AUTHORITY TO ASSIST BOSNIA AND HERZEGOVINA

SEC. 539. (a) The President is authorized to direct the transfer,
subject to prior notification of the Committees on Appropriations,
to the Government of Bosnia and Herzegovina, without reimbursement, of defense articles from the stocks of the Department of
Defense and defense services of the Department of Defense of
an aggregate value of not to exceed $100,000,000 in fiscal years
1996 and 1997: Provided, That the President certifies in a timely
fashion to the Congress that the transfer of such articles would
assist that nation in self-defense and thereby promote the security
and stability of the region.
(b) Within 60 days of any transfer under the authority provided
in subsection (a), and every 60 days thereafter, the President shall
report in writing to the Speaker of the House of Representatives

110 STAT. 3009–155

PUBLIC LAW 104–208—SEPT. 30, 1996

and the President pro tempore of the Senate concerning the articles
transferred and the disposition thereof.
(c) There are authorized to be appropriated to the President
such sums as may be necessary to reimburse the applicable appropriation, fund, or account for defense articles provided under this
section.
RESTRICTIONS ON THE TERMINATION OF SANCTIONS AGAINST SERBIA
AND MONTENEGRO

50 USC 1701
note.

SEC. 540. (a) RESTRICTIONS.—Notwithstanding any other provision of law, no sanction, prohibition, or requirement described in
section 1511 of the National Defense Authorization Act for Fiscal
Year 1994 (Public Law 103–160), with respect to Serbia or
Montenegro, may cease to be effective, unless—
(1) the President first submits to the Congress a certification described in subsection (b); and
(2) the requirements of section 1511 of that Act are met.
(b) CERTIFICATION.—A certification described in this subsection
is a certification that—
(1) there is substantial progress toward—
(A) the realization of a separate identity for Kosova
and the right of the people of Kosova to govern themselves;
or
(B) the creation of an international protectorate for
Kosova;
(2) there is substantial improvement in the human rights
situation in Kosova;
(3) international human rights observers are allowed to
return to Kosova; and
(4) the elected government of Kosova is permitted to meet
and carry out its legitimate mandate as elected representatives
of the people of Kosova.
(c) WAIVER AUTHORITY.—The President may waive the application in whole or in part, of subsection (a) if the President certifies
to the Congress that the President has determined that the waiver
is necessary to meet emergency humanitarian needs or to achieve
a negotiated settlement of the conflict in Bosnia and Herzegovina
that is acceptable to the parties.
SPECIAL AUTHORITIES

SEC. 541. (a) Funds appropriated in title II of this Act that
are made available for Afghanistan, Lebanon, and Cambodia, and
for victims of war, displaced children, displaced Burmese, humanitarian assistance for Romania, and humanitarian assistance for
the peoples of Bosnia and Herzegovina, Croatia, and Kosova, may
be made available notwithstanding any other provision of law:
Provided, That any such funds that are made available for Cambodia shall be subject to the provisions of section 531(e) of the
Foreign Assistance Act of 1961 and section 906 of the International
Security and Development Cooperation Act of 1985: Provided further, That none of the funds appropriated by this Act may be
made available for assistance for any country or organization that
the Secretary of State determines is cooperating, tactically or strategically, with the Khmer Rouge in their military operations, or
to the military of any country that is not acting vigorously to
prevent its members from facilitating the export of timber from

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–156

Cambodia by the Khmer Rouge: Provided further, That the Secretary of State shall submit a report to the Committees on Appropriations by February 1, 1997, on whether there are any countries,
organizations, or militaries for which assistance is prohibited under
the previous proviso, the basis for such conclusions and, if appropriate, the steps being taken to terminate assistance: Provided
further, That the prohibition on assistance to the military of any
country that is not acting vigorously to prevent its members from
facilitating the export of timber from Cambodia by the Khmer
Rouge may be waived by the President if he determines and reports
to the Committees on Appropriations that it is important to the
national security interest of the United States to do so.
(b) Funds appropriated by this Act to carry out the provisions
of sections 103 through 106 of the Foreign Assistance Act of 1961
may be used, notwithstanding any other provision of law, for the
purpose of supporting tropical forestry and energy programs aimed
at reducing emissions of greenhouse gases, and for the purpose
of supporting biodiversity conservation activities: Provided, That
such assistance shall be subject to sections 116, 502B, and 620A
of the Foreign Assistance Act of 1961.
(c) During fiscal year 1997, the President may use up to
$40,000,000 under the authority of section 451 of the Foreign Assistance Act of 1961, notwithstanding the funding ceiling contained
in subsection (a) of that section.
(d) The Agency for International Development may employ
personal services contractors, notwithstanding any other provision
of law, for the purpose of administering programs for the West
Bank and Gaza.
POLICY ON TERMINATING THE ARAB LEAGUE BOYCOTT OF ISRAEL

SEC. 542. It is the sense of the Congress that—
(1) the Arab League countries should immediately and
publicly renounce the primary boycott of Israel and the secondary and tertiary boycott of American firms that have commercial ties with Israel; and
(2) the President should—
(A) take more concrete steps to encourage vigorously
Arab League countries to renounce publicly the primary
boycotts of Israel and the secondary and tertiary boycotts
of American firms that have commercial relations with
Israel as a confidence-building measure;
(B) take into consideration the participation of any
recipient country in the primary boycott of Israel and the
secondary and tertiary boycotts of American firms that
have commercial relations with Israel when determining
whether to sell weapons to said county;
(C) report to Congress on the specific steps being taken
by the President to bring about a public renunciation of
the Arab primary boycott of Israel and the secondary and
tertiary boycotts of American firms that have commercial
relations with Israel; and
(D) encourage the allies and trading partners of the
United States to enact laws prohibiting businesses from
complying with the boycott and penalizing businesses that
do comply.

110 STAT. 3009–157

PUBLIC LAW 104–208—SEPT. 30, 1996
ANTI-NARCOTICS ACTIVITIES

SEC. 543. (a) Of the funds appropriated or otherwise made
available by this Act for ‘‘Economic Support Fund’’, assistance may
be provided to strengthen the administration of justice in countries
in Latin America and the Caribbean and in other regions consistent
with the provisions of section 534(b) of the Foreign Assistance
Act of 1961, except that programs to enhance protection of participants in judicial cases may be conducted notwithstanding section
660 of that Act.
(b) Funds made available pursuant to this section may be
made available notwithstanding section 534(c) and the second and
third sentences of section 534(e) of the Foreign Assistance Act
of 1961. Funds made available pursuant to subsection (a) for Bolivia,
Colombia and Peru may be made available notwithstanding section
534(c) and the second sentence of section 534(e) of the Foreign
Assistance Act of 1961.
ELIGIBILITY FOR ASSISTANCE

SEC. 544. (a) ASSISTANCE THROUGH NONGOVERNMENTAL
ORGANIZATIONS.—Restrictions contained in this or any other Act
with respect to assistance for a country shall not be construed
to restrict assistance in support of programs of nongovernmental
organizations from funds appropriated by this Act to carry out
the provisions of chapters 1 and 10 of part I of the Foreign Assistance Act of 1961: Provided, That the President shall take into
consideration, in any case in which a restriction on assistance
would be applicable but for this subsection, whether assistance
in support of programs of nongovernmental organizations is in
the national interest of the United States: Provided further, That
before using the authority of this subsection to furnish assistance
in support of programs of nongovernmental organizations, the President shall notify the Committees on Appropriations under the regular notification procedures of those committees, including a description of the program to be assisted, the assistance to be provided,
and the reasons for furnishing such assistance: Provided further,
That nothing in this subsection shall be construed to alter any
existing statutory prohibitions against abortion or involuntary sterilizations contained in this or any other Act.
(b) PUBLIC LAW 480.—During fiscal year 1997, restrictions contained in this or any other Act with respect to assistance for
a country shall not be construed to restrict assistance under the
Agricultural Trade Development and Assistance Act of 1954: Provided, That none of the funds appropriated to carry out title I
of such Act and made available pursuant to this subsection may
be obligated or expended except as provided through the regular
notification procedures of the Committees on Appropriations.
(c) EXCEPTION.—This section shall not apply—
(1) with respect to section 620A of the Foreign Assistance
Act or any comparable provision of law prohibiting assistance
to countries that support international terrorism; or
(2) with respect to section 116 of the Foreign Assistance
Act of 1961 or any comparable provision of law prohibiting
assistance to countries that violate internationally recognized
human rights.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–158

EARMARKS

SEC. 544A. (a) Funds appropriated by this Act which are earmarked may be reprogrammed for other programs within the same
account notwithstanding the earmark if compliance with the earmark is made impossible by operation of any provision of this
or any other Act or, with respect to a country with which the
United States has an agreement providing the United States with
base rights or base access in that country, if the President determines that the recipient for which funds are earmarked has significantly reduced its military or economic cooperation with the United
States since enactment of the Foreign Operations, Export Financing,
and Related Programs Appropriations Act, 1991; however, before
exercising the authority of this subsection with regard to a base
rights or base access country which has significantly reduced its
military or economic cooperation with the United States, the President shall consult with, and shall provide a written policy justification to the Committees on Appropriations: Provided, That any such
reprogramming shall be subject to the regular notification procedures of the Committees on Appropriations: Provided further, That
assistance that is reprogrammed pursuant to this subsection shall
be made available under the same terms and conditions as originally
provided.
(b) In addition to the authority contained in subsection (a),
the original period of availability of funds appropriated by this
Act and administered by the Agency for International Development
that are earmarked for particular programs or activities by this
or any other Act shall be extended for an additional fiscal year
if the Administrator of such agency determines and reports
promptly to the Committees on Appropriations that the termination
of assistance to a country or a significant change in circumstances
makes it unlikely that such earmarked funds can be obligated
during the original period of availability: Provided, That such earmarked funds that are continued available for an additional fiscal
year shall be obligated only for the purpose of such earmark.
CEILINGS AND EARMARKS

SEC. 545. Ceilings and earmarks contained in this Act shall
not be applicable to funds or authorities appropriated or otherwise
made available by any subsequent Act unless such Act specifically
so directs.
PROHIBITION ON PUBLICITY OR PROPAGANDA

SEC. 546. No part of any appropriation contained in this Act
shall be used for publicity or propaganda purposes within the
United States not authorized before the date of enactment of this
Act by the Congress: Provided, That not to exceed $750,000 may
be made available to carry out the provisions of section 316 of
Public Law 96–533.
USE OF AMERICAN RESOURCES

SEC. 547. To the maximum extent possible, assistance provided
under this Act should make full use of American resources, including commodities, products, and services.

110 STAT. 3009–159

PUBLIC LAW 104–208—SEPT. 30, 1996

PROHIBITION OF PAYMENTS TO UNITED NATIONS MEMBERS

SEC. 548. None of the funds appropriated or made available
pursuant to this Act for carrying out the Foreign Assistance Act
of 1961, may be used to pay in whole or in part any assessments,
arrearages, or dues of any member of the United Nations.
CONSULTING SERVICES

SEC. 549. The expenditure of any appropriation under this
Act for any consulting service through procurement contract, pursuant to section 3109 of title 5, United States Code, shall be limited
to those contracts where such expenditures are a matter of public
record and available for public inspection, except where otherwise
provided under existing law, or under existing Executive order
pursuant to existing law.
PRIVATE VOLUNTARY ORGANIZATIONS—DOCUMENTATION

SEC. 550. None of the funds appropriated or made available
pursuant to this Act shall be available to a private voluntary
organization which fails to provide upon timely request any document, file, or record necessary to the auditing requirements of
the Agency for International Development.
PROHIBITION ON ASSISTANCE TO FOREIGN GOVERNMENTS THAT EXPORT LETHAL MILITARY EQUIPMENT TO COUNTRIES SUPPORTING
INTERNATIONAL TERRORISM

SEC. 551. (a) None of the funds appropriated or otherwise
made available by this Act may be available to any foreign government which provides lethal military equipment to a country the
government of which the Secretary of State has determined is
a terrorist government for purposes of section 40(d) of the Arms
Export Control Act. The prohibition under this section with respect
to a foreign government shall terminate 12 months after that
government ceases to provide such military equipment. This section
applies with respect to lethal military equipment provided under
a contract entered into after the date of enactment of this Act.
(b) Assistance restricted by subsection (a) or any other similar
provision of law, may be furnished if the President determines
that furnishing such assistance is important to the national
interests of the United States.
(c) Whenever the waiver of subsection (b) is exercised, the
President shall submit to the appropriate congressional committees
a report with respect to the furnishing of such assistance. Any
such report shall include a detailed explanation of the assistance
to be provided, including the estimated dollar amount of such
assistance, and an explanation of how the assistance furthers
United States national interests.
WITHHOLDING OF ASSISTANCE FOR PARKING FINES OWED BY FOREIGN
COUNTRIES

SEC. 552. (a) IN GENERAL.—Of the funds made available for
a foreign country under part I of the Foreign Assistance Act of
1961, an amount equivalent to 110 percent of the total unpaid
fully adjudicated parking fines and penalties owed to the District
of Columbia by such country as of the date of enactment of this

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–160

Act shall be withheld from obligation for such country until the
Secretary of State certifies and reports in writing to the appropriate
congressional committees that such fines and penalties are fully
paid to the government of the District of Columbia.
(b) DEFINITION.—For purposes of this section, the term ‘‘appropriate congressional committees’’ means the Committee on Foreign
Relations and the Committee on Appropriations of the Senate and
the Committee on International Relations and the Committee on
Appropriations of the House of Representatives.
LIMITATION ON ASSISTANCE FOR THE PLO FOR THE WEST BANK AND
GAZA

SEC. 553. None of the funds appropriated by this Act may
be obligated for assistance for the Palestine Liberation Organization
for the West Bank and Gaza unless the President has exercised
the authority under section 604(a) of the Middle East Peace Facilitation Act of 1995 (title VI of Public Law 104–107) or any other
legislation to suspend or make inapplicable section 307 of the Foreign Assistance Act of 1961 and that suspension is still in effect:
Provided, That if the President fails to make the certification under
section 604(b)(2) of the Middle East Peace Facilitation Act of 1995
or to suspend the prohibition under other legislation, funds appropriated by this Act may not be obligated for assistance for the
Palestine Liberation Organization for the West Bank and Gaza.
EXPORT FINANCING TRANSFER AUTHORITIES

SEC. 554. Not to exceed 5 percent of any appropriation other
than for administrative expenses made available for fiscal year
1997 for programs under title I of this Act may be transferred
between such appropriations for use for any of the purposes, programs and activities for which the funds in such receiving account
may be used, but no such appropriation, except as otherwise specifically provided, shall be increased by more than 25 percent by
any such transfer: Provided, That the exercise of such authority
shall be subject to the regular notification procedures of the
Committees on Appropriations.
WAR CRIMES TRIBUNALS

SEC. 555. If the President determines that doing so will contribute to a just resolution of charges regarding genocide or other
violations of international humanitarian law, the President may
direct a drawdown pursuant to section 552(c) of the Foreign Assistance Act of 1961, as amended, of up to $25,000,000 of commodities
and services for the United Nations War Crimes Tribunal established with regard to the former Yugoslavia by the United Nations
Security Council or such other tribunals or commissions as the
Council may establish to deal with such violations, without regard
to the ceiling limitation contained in paragraph (2) thereof: Provided, That the determination required under this section shall
be in lieu of any determinations otherwise required under section
552(c): Provided further, That 60 days after the date of enactment
of this Act, and every 180 days thereafter, the Secretary of State
shall submit a report to the Committees on Appropriations describing the steps the United States Government is taking to collect
information regarding allegations of genocide or other violations

22 USC 2656
note.

110 STAT. 3009–161

PUBLIC LAW 104–208—SEPT. 30, 1996

of international law in the former Yugoslavia and to furnish that
information to the United Nations War Crimes Tribunal for the
former Yugoslavia.
LANDMINES

SEC. 556. Notwithstanding any other provision of law, demining
equipment available to the Agency for International Development
and the Department of State and used in support of the clearing
of landmines and unexploded ordnance for humanitarian purposes
may be disposed of on a grant basis in foreign countries, subject
to such terms and conditions as the President may prescribe: Provided, That section 1365(c) of the National Defense Authorization
Act for Fiscal Year 1993 (Public Law 102–484; 22 U.S.C., 2778
note) is amended by striking out ‘‘During the five-year period beginning on October 23, 1992’’ and inserting in lieu thereof ‘‘During
the eight-year period beginning on October 23, 1992’’.
RESTRICTIONS CONCERNING THE PALESTINIAN AUTHORITY

SEC. 557. None of the funds appropriated by this Act may
be obligated or expended to create in any part of Jerusalem a
new office of any department or agency of the United States Government for the purpose of conducting official United States Government business with the Palestinian Authority over Gaza and Jericho
or any successor Palestinian governing entity provided for in the
Israel-PLO Declaration of Principles: Provided, That this restriction
shall not apply to the acquisition of additional space for the existing
Consulate General in Jerusalem: Provided further, That meetings
between officers and employees of the United States and officials
of the Palestinian Authority, or any successor Palestinian governing
entity provided for in the Israel-PLO Declaration of Principles,
for the purpose of conducting official United States Government
business with such authority should continue to take place in locations other than Jerusalem. As has been true in the past, officers
and employees of the United States Government may continue
to meet in Jerusalem on other subjects with Palestinians (including
those who now occupy positions in the Palestinian Authority), have
social contacts, and have incidental discussions.
PROHIBITION OF PAYMENT OF CERTAIN EXPENSES

SEC. 558. None of the funds appropriated or otherwise made
available by this Act under the heading ‘‘INTERNATIONAL MILITARY
EDUCATION AND TRAINING’’ or ‘‘FOREIGN MILITARY FINANCING PROGRAM’’ for Informational Program activities may be obligated or
expended to pay for—
(1) alcoholic beverages;
(2) food (other than food provided at a military installation)
not provided in conjunction with Informational Program trips
where students do not stay at a military installation; or
(3) entertainment expenses for activities that are substantially of a recreational character, including entrance fees at
sporting events and amusement parks.
HUMANITARIAN CORRIDORS

SEC. 559. The Foreign Assistance Act of 1961 is amended
by adding immediately after section 620H the following new section:

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110 STAT. 3009–162

‘‘SEC. 620I. PROHIBITION ON ASSISTANCE TO COUNTRIES THAT
RESTRICT UNITED STATES HUMANITARIAN ASSISTANCE.—
‘‘(a) IN GENERAL.—No assistance shall be furnished under
this Act or the Arms Export Control Act to any country when
it is made known to the President that the government of
such country prohibits or otherwise restricts, directly or
indirectly, the transport or delivery of United States humanitarian assistance.
‘‘(b) EXCEPTION.—Assistance may be furnished without
regard to the restriction in subsection (a) if the President
determines that to do so is in the national security interest
of the United States.
‘‘(c) NOTICE.—Prior to making any determination under
subsection (b), the President shall notify the Committee on
International Relations, the Committee on Foreign Relations,
and the Committees on Appropriations of the Senate and House
of Representatives of his intention to make such a determination, the effective date of the determination, and the reasons
for making the determination.’’.
EQUITABLE ALLOCATION OF FUNDS

SEC. 560. Not more than 20 percent of the funds appropriated
by this Act to carry out the provisions of sections 103 through
106 and chapter 4 of part II of the Foreign Assistance Act of
1961, that are made available for Latin America and the Caribbean
region may be made available, through bilateral and Latin America
and the Caribbean regional programs, to provide assistance for
any country in such region.
PURCHASE OF AMERICAN-MADE EQUIPMENT AND PRODUCTS

SEC. 561. (a) SENSE OF CONGRESS.—It is the sense of the
Congress that, to the greatest extent practicable, all equipment
and products purchased with funds made available in this Act
should be American-made.
(b) NOTICE REQUIREMENT.—In providing financial assistance
to, or entering into any contract with, any entity using funds
made available in this Act, the head of each Federal agency, to
the greatest extent practicable, shall provide to such entity a notice
describing the statement made in subsection (a) by the Congress.
LIMITATION OF FUNDS FOR NORTH AMERICAN DEVELOPMENT BANK

SEC. 562. None of the Funds appropriated in this Act under
the heading ‘‘North American Development Bank’’ and made available for the Community Adjustment and Investment Program shall
be used for purposes other than those set out in the binational
agreement establishing the Bank.
INTERNATIONAL DEVELOPMENT ASSOCIATION

SEC. 563. In order to pay for the United States contribution
to the tenth replenishment of the resources of the International
Development Association authorized in section 526 of Public Law
103–87, there is authorized to be appropriated, without fiscal year
limitation, $700,000,000 for payment by the Secretary of the Treasury.

22 USC 2378–1.

110 STAT. 3009–163

PUBLIC LAW 104–208—SEPT. 30, 1996
SPECIAL DEBT RELIEF FOR THE POOREST

SEC. 564. (a) AUTHORITY TO REDUCE DEBT.—The President
may reduce amounts owed to the United States (or any agency
of the United States) by an eligible country as a result of—
(1) guarantees issued under sections 221 and 222 of the
Foreign Assistance Act of 1961; or
(2) credits extended or guarantees issued under the Arms
Export Control Act.
(b) LIMITATIONS.—
(1) The authority provided by subsection (a) may be exercised only to implement multilateral official debt relief and
referendum agreements, commonly referred to as ‘‘Paris Club
Agreed Minutes’’.
(2) The authority provided by subsection (a) may be exercised only in such amounts or to such extent as is provided
in advance by appropriations Acts.
(3) The authority provided by subsection (a) may be exercised only with respect to countries with heavy debt burdens
that are eligible to borrow from the International Development
Association, but not from the International Bank for
Reconstruction and Development, commonly referred to as
‘‘IDA-only’’ countries.
(c) CONDITIONS.—The authority provided by subsection (a) may
be exercised only with respect to a country whose government—
(1) does not have an excessive level of military expenditures;
(2) has not repeatedly provided support for acts of international terrorism;
(3) is not failing to cooperate on international narcotics
control matters;
(4) (including its military or other security forces) does
not engage in a consistent pattern of gross violations of internationally recognized human rights; and
(5) is not ineligible for assistance because of the application
of section 527 of the Foreign Relations Authorization Act, fiscal
years 1994 and 1995.
(d) AVAILABILITY OF FUNDS.—The authority provided by subsection (a) may be used only with regard to funds appropriated
by this Act under the heading ‘‘Debt restructuring’’.
(e) CERTAIN PROHIBITIONS INAPPLICABLE.—A reduction of debt
pursuant to subsection (a) shall not be considered assistance for
purposes of any provision of law limiting assistance to a country.
The authority provided by subsection (a) may be exercised notwithstanding section 620(r) of the Foreign Assistance Act of 1961.
AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR SALES

SEC. 565.
CELLATION.—

(a) LOANS ELIGIBLE

FOR

SALE, REDUCTION,

OR

CAN-

(1) AUTHORITY TO SELL, REDUCE, OR CANCEL CERTAIN
LOANS.—Notwithstanding any other provision of law, the President may, in accordance with this section, sell to any eligible
purchaser any concessional loan or portion thereof made before
January 1, 1995, pursuant to the Foreign Assistance Act of
1961, to the government of any eligible country as define in
section 702(6) of that Act or on receipt of payment from an

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–164

eligible purchaser, reduce or cancel such loan or portion thereof,
only for the purpose of facilitating—
(A) debt-for-equity swaps, debt-for-development swaps,
or debt-for-nature swaps; or
(B) a debt buyback by an eligible country of its own
qualified debt, only if the eligible country uses an additional
amount of the local currency of the eligible country, equal
to not less than 40 percent of the price paid for such
debt by such eligible country, or the difference between
the price paid for such debt and the face value of such
debt, to support activities that link conservation and
sustainable use of natural resources with local community
development, and child survival and other child development, in a manner consistent with sections 707 through
710 of the Foreign Assistance Act of 1961, if the sale,
reduction, or cancellation would not contravene any term
or condition of any prior agreement relating to such loan.
(2) TERMS AND CONDITIONS.—Notwithstanding any other
provision of law, the President shall, in accordance with this
section, establish the terms and conditions under which loans
may be sold, reduced, or canceled pursuant to this section.
(3) ADMINISTRATION.—The Facility, as defined in section
702(8) of the Foreign Assistance Act of 1961, shall notify the
administrator of the agency primarily responsible for administering part I of the Foreign Assistance Act of 1961 of purchasers that the President has determined to be eligible, and
shall direct such agency to carry out the sale, reduction, or
cancellation of a loan pursuant to this section. Such agency
shall make an adjustment in its accounts to reflect the sale,
reduction, or cancellation.
(4) LIMITATION.—The authorities of this subsection shall
be available only to the extent that appropriations for the
cost of the modification, as defined in section 502 of the
Congressional Budget Act of 1974, are made in advance.
(b) DEPOSIT OF PROCEEDS.—The proceeds from the sale, reduction, or cancellation of any loan sold, reduced, or canceled pursuant
to this section shall be deposited in the United States Government
account or accounts established for the repayment of such loan.
(c) ELIGIBLE PURCHASERS.—A loan may be sold pursuant to
subsection (a)(1)(A) only to a purchaser who presents plans satisfactory to the President for using the loan for the purpose of engaging
in debt-for-equity swaps, debt-for-development swaps, or debt-fornature swaps.
(d) DEBTOR CONSULTATIONS.—Before the sale to any eligible
purchaser, or any reduction or cancellation pursuant to this section,
of any loan made to an eligible country, the President should
consult with the country concerning the amount of loans to be
sold, reduced, or canceled and their uses for debt-for-equity swaps,
debt-for-development swaps, or debt-for-nature swaps.
(e) AVAILABILITY OF FUNDS.—The authority provided by subsection (a) may be used only with regard to funds appropriated
by this Act under the heading ‘‘Debt restructuring’’.
LIBERIA

SEC. 566. Funds appropriated by this Act may be made available for assistance for Liberia notwithstanding section 620(q) of
the Foreign Assistance Act of 1961 and section 512 of this Act.

110 STAT. 3009–165

PUBLIC LAW 104–208—SEPT. 30, 1996
GUATEMALA

SEC. 567. (a) Funds provided in this Act may be made available
for the Guatemalan military forces, and the restrictions on Guatemala under the headings ‘‘International Military Education and
Training’’ and ‘‘Foreign Military Financing Program’’ shall not
apply, only if the President determines and certifies to the Congress
that the Guatemalan military is cooperating fully with efforts to
resolve human rights abuses which elements of the Guatemalan
military forces are alleged to have committed, ordered or attempted
to thwart the investigation of, and with efforts to negotiate a
peace settlement.
(b) The prohibition contained in subsection (a) shall not apply
to funds made available to implement a ceasefire or peace agreement.
(c) Any funds made available pursuant to subsections (a) or
(b) shall be subject to the regular notification procedures of the
Committees on Appropriations.
(d) Any funds made available pursuant to subsections (a) and
(b) for international military education and training may only be
for expanded international military education and training.
SANCTIONS AGAINST COUNTRIES HARBORING WAR CRIMINALS

SEC. 568. (a) BILATERAL ASSISTANCE.—The President is authorized to withhold funds appropriated by this Act under the Foreign
Assistance Act of 1961 or the Arms Export Control Act for any
country described in subsection (c).
(b) MULTILATERAL ASSISTANCE.—The Secretary of the Treasury
should instruct the United States executive directors of the international financial institutions to work in opposition to, and vote
against, any extension by such institutions of financing or financial
or technical assistance to any country described in subsection (c).
(c) SANCTIONED COUNTRIES.—A country described in this subsection is a country the government of which knowingly grants
sanctuary to persons in its territory for the purpose of evading
prosecution, where such persons—
(1) have been indicted by the International Criminal Tribunal for the former Yugoslavia, the International Criminal Tribunal for Rwanda, or any other international tribunal with similar
standing under international law, or
(2) have been indicted for war crimes or crimes against
humanity committed during the period beginning March 23,
1933 and ending on May 8, 1945 under the direction of, or
in association with—
(A) the Nazi government of Germany;
(B) any government in any area occupied by the military forces of the Nazi government of Germany;
(C) any government which was established with the
assistance or cooperation of the Nazi government; or
(D) any government which was an ally of the Nazi government
of Germany.
LIMITATION ON ASSISTANCE FOR HAITI

SEC. 569. (a) LIMITATION.—None of the funds appropriated
or otherwise made available by this Act, may be provided to the
Government of Haiti until the President reports to Congress that—

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–166

(1) the Government is conducting thorough investigations
of extrajudicial and political killings; and
(2) the Government is cooperating with United States
authorities in the investigations of political and extrajudicial
killings.
(b) Nothing in this section shall be construed to restrict the
provision of humanitarian, development, or electoral assistance.
(c) The President may waive the requirements of this section
on a semiannual basis if he determines and certifies to the appropriate committees of Congress that it is in the national interest
of the United States.
POLICY TOWARD BURMA

SEC. 570. (a) Until such time as the President determines
and certifies to Congress that Burma has made measurable and
substantial progress in improving human rights practices and
implementing democratic government, the following sanctions shall
be imposed on Burma:
(1) BILATERAL ASSISTANCE.—There shall be no United
States assistance to the Government of Burma, other than:
(A) humanitarian assistance,
(B) subject to the regular notification procedures of
the Committees on Appropriations, counter-narcotics assistance under chapter 8 of part I of the Foreign Assistance
Act of 1961, or crop substitution assistance, if the Secretary
of State certifies to the appropriate congressional committees that—
(i) the Government of Burma is fully cooperating
with United States counter-narcotics efforts, and
(ii) the programs are fully consistent with United
States human rights concerns in Burma and serve
the United States national interest, and
(C) assistance promoting human rights and democratic
values.
(2) MULTILATERAL ASSISTANCE.—The Secretary of the
Treasury shall instruct the United States executive director
of each international financial institution to vote against any
loan or other utilization of funds of the respective bank to
or for Burma.
(3) VISAS.—Except as required by treaty obligations or to
staff the Burmese mission to the United States, the United
States should not grant entry visas to any Burmese government
official.
(b) CONDITIONAL SANCTIONS.—The President is hereby authorized to prohibit, and shall prohibit United States persons from
new investment in Burma, if the President determines and certifies
to Congress that, after the date of enactment of this Act, the
Government of Burma has physically harmed, rearrested for political acts, or exiled Daw Aung San Suu Kyi or has committed largescale repression of or violence against the Democratic opposition.
(c) MULTILATERAL STRATEGY.—The President shall seek to
develop, in coordination with members of ASEAN and other countries having major trading and investment interests in Burma,
a comprehensive, multilateral strategy to bring democracy to and
improve human rights practices and the quality of life in Burma,
including the development of a dialogue between the State Law

110 STAT. 3009–167

PUBLIC LAW 104–208—SEPT. 30, 1996

and Order Restoration Council (SLORC) and democratic opposition
groups within Burma.
(d) PRESIDENTIAL REPORTS.—Every six months following the
enactment of this Act, the President shall report to the Chairmen
of the Committee on Foreign Relations, the Committee on International Relations and the House and Senate Appropriations
Committees on the following:
(1) progress toward democratization in Burma;
(2) progress on improving the quality of life of the Burmese
people, including progress on market reforms, living standards,
labor standards, use of forced labor in the tourism industry,
and environmental quality; and
(3) progress made in developing the strategy referred to
in subsection (c).
(e) WAIVER AUTHORITY.—The President shall have the authority
to waive, temporarily or permanently, any sanction referred to
in subsection (a) or subsection (b) if he determines and certifies
to Congress that the application of such sanction would be contrary
to the national security interests of the United States.
(f) DEFINITIONS.—
(1) The term ‘‘international financial institutions’’ shall
include the International Bank for Reconstruction and Development, the International Development Association, the International Finance Corporation, the Multilateral Investment
Guarantee Agency, the Asian Development Bank, and the International Monetary Fund.
(2) The term ‘‘new investment’’ shall mean any of the
following activities if such an activity is undertaken pursuant
to an agreement, or pursuant to the exercise of rights under
such an agreement, that is entered into with the Government
of Burma or a nongovernmental entity in Burma, on or after
the date of the certification under subsection (b):
(A) the entry into a contract that includes the
economical development of resources located in Burma,
or the entry into a contract providing for the general supervision and guarantee of another person’s performance of
such a contract;
(B) the purchase of a share of ownership, including
an equity interest, in that development;
(C) the entry into a contract providing for the participation in royalties, earnings, or profits in that development,
without regard to the form of the participation:
Provided, That the term ‘‘new investment’’ does not include
the entry into, performance of, or financing of a contract to
sell or purchase goods, services, or technology.
REPORT REGARDING HONG KONG

22 USC 5731
note.

SEC. 571. In light of the deficiencies in reports submitted to
the Congress pursuant to section 301 of the United States-Hong
Kong Policy Act (22 U.S.C. 5731), the Congress directs that the
additional report required to be submitted during 1997 under such
section include detailed information on the status of, and other
developments affecting, implementation of the Sino-British Joint
Declaration on the Question of Hong King, including—
(1) the Basic Law and its consistency with the Joint Declaration;

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–168

(2) Beijing’s plans to replace the elected legislature with
an appointed body;
(3) the openness and fairness of the election of the chief
executive and the executive’s accountability to the legislature;
(4) the treatment of political parties;
(5) the independence of the Judiciary and its ability to
exercise the power of final judgment over Hong Kong law;
and
(6) the Bill of Rights.
USE OF FUNDS FOR PURCHASE OF PRODUCTS NOT MADE IN AMERICA

SEC. 572. The Administrator of the Agency for International
Development shall provide a report to the appropriate committees
of the Congress on the ability of the United States Government
to implement a provision of law (and on the foreign policy implications of such a provision of law) which would require that United
States funds could be made available to the government of a foreign
country for the purchase of any equipment or products only if
such purchases were to occur in such foreign country or the United
States, and substantially similar equipment and products were
made in the United States and available for purchase at a price
that is not more than 10 percent higher than that in other countries.
CONFLICT IN CHECHNYA

SEC. 573. The Secretary of State shall provide to the Committees on Appropriations no later than 30 days from the date of
enactment of this Act a detailed report on actions undertaken
by the United States Government to resolve the conflict in
Chechnya.
EXTENSION OF CERTAIN ADJUDICATION PROVISIONS

SEC. 575. The Foreign Operations, Export Financing, and
Related Programs Appropriations Act, 1990 (Public Law 101–167)
is amended—
(1) in section 599D (8 U.S.C. 1157 note)—
(A) in subsection (b)(3), by striking ‘‘and 1996’’ and
inserting ‘‘1996, and 1997’’; and
(B) in subsection (e), by striking out ‘‘October 1, 1996’’
each place it appears and inserting ‘‘October 1, 1997’’;
and
(2) in section 599E (8 U.S.C. 1255 note) in subsection
(b)(2), by striking out ‘‘September 30, 1996’’ and inserting
‘‘September 30, 1997’’.
TRANSPARENCY OF BUDGETS

SEC. 576. (a) LIMITATION.—Beginning three years after the
date of the enactment of this Act, the Secretary of the Treasury
shall instruct the United States Executive Director of each international financial institution to use the voice and vote of the United
States to oppose any loan or other utilization of the funds of
their respective institution, other than to address basic human
needs, for the government of any country which the Secretary
of the Treasury determines—

22 USC 262k–1.

110 STAT. 3009–169

PUBLIC LAW 104–208—SEPT. 30, 1996

(1) does not have in place a functioning system for a civilian
audit of all receipts and expenditures that fund activities of
the armed forces and security forces;
(2) has not provided a summary of a current audit to
the institution.
(b) DEFINITION.—For purposes of this section, the term ‘‘international financial institution’’ shall include the institutions identified in section 532(b) of this Act.
GUARANTEES

2 USC 901.

SEC. 577. Section 251(b)(2)(G) of the Balanced Budget and
Emergency Deficit Control Act of 1985 is amended by striking
‘‘fiscal year 1994 and 1995’’ and inserting in lieu thereof ‘‘fiscal
years 1994, 1995, and 1997’’ in both places that this appears.
INFORMATION ON COOPERATION WITH UNITED STATES ANTITERRORISM EFFORTS IN ANNUAL COUNTRY REPORTS ON TERRORISM

SEC. 578. Section 140 of the Foreign Relations Authorization
Act, fiscal years 1988 and 1989 (22 U.S.C. 2656f) is amended—
(1) in subsection (a)—
(A) by striking ‘‘and’’ at the end of paragraph (1);
(B) by striking the period at the end of paragraph
(2) and inserting a semicolon; and
(C) by adding at the end the following:
‘‘(3) with respect to each foreign country from which the
United States Government has sought cooperation during the
previous five years in the investigation or prosecution of an
act of international terrorism against United States citizens
or interests, information on—
‘‘(A) the extent to which the government of the foreign
country is cooperating with the United States Government
in apprehending, convicting, and punishing the individual
or individuals responsible for the act; and
‘‘(B) the extent to which the government of the foreign
country is cooperating in preventing further acts of terrorism against United States citizens in the foreign country;
and
‘‘(4) with respect to each foreign country from which the
United States Government has sought cooperation during the
previous five years in the prevention of an act of international
terrorism against such citizens or interests, the information
described in paragraph (3)(B).’’; and
(2) in subsection (c)—
(A) by striking ‘‘The report’’ and inserting ‘‘(1) Except
as provided in paragraph (2), the report’’;
(B) by indenting the margin of paragraph (1) as so
designated, 2 ems; and
(C) by adding at the end the following:
‘‘(2) If the Secretary of State determines that the transmittal of the information with respect to a foreign country under
paragraph (3) or (4) of subsection (a) in classified form would
make more likely the cooperation of the government of the
foreign country as specified in such paragraph, the Secretary
may transmit the information under such paragraph in classified form.’’.

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110 STAT. 3009–170

FEMALE GENITAL MUTILATION

SEC. 579. (a) LIMITATION.—Beginning 1 year after the date
of the enactment of this Act, the Secretary of the Treasury shall
instruct the United States Executive Director of each international
financial institution to use the voice and vote of the United States
to oppose any loan or other utilization of the funds of their respective institution, other than to address basic human needs, for the
government of any country which the Secretary of the Treasury
determines—
(1) has, as a cultural custom, a known history of the
practice of female genital mutilation; and
(2) has not taken steps to implement educational programs
designed to prevent the practice of female genital mutilation.
(b) DEFINITION.—For purposes of this section, the term ‘‘international financial institution’’ shall include the institutions identified in section 532(b) of this Act.

22 USC 262k–2.

REQUIREMENT FOR DISCLOSURE OF FOREIGN AID IN REPORT OF
SECRETARY OF STATE

SEC. 580. (a) FOREIGN AID REPORTING REQUIREMENT.—In addition to the voting practices of a foreign country, the report required
to be submitted to Congress under section 406(a) of the Foreign
Relations Authorization Act, fiscal years 1990 and 1991 (22 U.S.C.
2414a), shall include a side-by-side comparison of individual countries’ overall support for the United States at the United Nations
and the amount of United States assistance provided to such country in fiscal year 1996.
(b) UNITED STATES ASSISTANCE.—For purposes of this section,
the term ‘‘United States assistance’’ has the meaning given the
term in section 481(e)(4) of the Foreign Assistance Act of 1961
(22 U.S.C. 2291(e)(4)).
RESTRICTIONS ON VOLUNTARY CONTRIBUTIONS TO UNITED NATIONS
AGENCIES

SEC. 581. (a) PROHIBITION ON VOLUNTARY CONTRIBUTIONS FOR
UNITED NATIONS.—None of the funds appropriated or otherwise
made available by this Act may be made available to pay any
voluntary contribution of the United States to the United Nations
(including the United Nations Development Program if the United
Nations implements or imposes any taxation on any United States
persons.
(b) CERTIFICATION REQUIRED FOR DISBURSEMENT OF FUNDS.—
None of the funds appropriated or otherwise made available under
this Act may be made available to pay any voluntary contribution
of the United States to the United Nations (including the United
Nations Development Program) unless the President certifies to
the Congress 15 days in advance of such payment that the United
Nations is not engaged in any effort to implement or impose any
taxation on United States persons in order to raise revenue for
the United Nations or any of its specialized agencies.
(c) DEFINITIONS.—As used in this section the term ‘‘United
States person’’ refers to—
(1) a natural person who is a citizen or national of the
United States; or

THE

22 USC 2414a
note.

110 STAT. 3009–171

PUBLIC LAW 104–208—SEPT. 30, 1996

(2) a corporation, partnership, or other legal entity organized under the United States or any State, territory, possession, or district of the United States.
HAITI

SEC. 582. The Government of Haiti shall be eligible to purchase
defense articles and services under the Arms Export Control Act
(22 U.S.C. 2751 et seq.), for the civilian-led Haitian National Police
and Coast Guard: Provided, That the authority provided by this
section shall be subject to the regular notification procedures of
the Committees on Appropriations.
REFUGEE STATUS FOR ADULT CHILDREN OF FORMER VIETNAMESE REEDUCATION CAMP INTERNEES RESETTLED UNDER THE ORDERLY DEPARTURE PROGRAM

SEC. 584. (a) ELIGIBILITY FOR ORDERLY DEPARTURE PROGRAM.—
For purposes of eligibility for the Orderly Departure Program for
nationals of Vietnam, during fiscal year 1997, an alien described
in subsection (b) shall be considered to be a refugee of special
humanitarian concern to the United States within the meaning
of section 207 of the Immigration and Nationality Act (8 U.S.C.
1157) and shall be admitted to the United States for resettlement
if the alien would be admissible as an immigrant under the
Immigration and Nationality Act (except as provided in section
207(c)(3) of that Act).
(b) ALIENS COVERED.—An alien described in this subsection
is an alien who—
(1) is the son or daughter of a national of Vietnam who—
(A) was formerly interned in a reeducation camp in
Vietnam by the Government of the Socialist Republic of
Vietnam; and
(B) has been accepted for resettlement as a refugee
under the Orderly Departure Program on or after April
1, 1995;
(2) is 21 years of age or older; and
(3) was unmarried as of the date of acceptance of the
alien’s parent for resettlement under the Orderly Departure
Program.
(c) SUPERSEDES EXISTING LAW.—This section supersedes any
other provision of law.
NORTH KOREA

22 USC 2656
note.

SEC. 585. Ninety days after the date of enactment of this
Act, and every 180 days thereafter, the Secretary of State, in
consultation with the Secretary of Defense, shall provide a report
in a classified or unclassified form to the Committee on Appropriations including the following information:
(a) a best estimate on fuel used by the military forces
of the Democratic People’s Republic of Korea (DPRK);
(b) the deployment position and military training and
activities of the DPRK forces and best estimate of the associated
costs of these activities;
(c) steps taken to reduce the DPRK level of forces; and
(d) cooperation, training, or exchanges of information, technology or personnel between the DPRK and any other nation

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110 STAT. 3009–172

supporting the development or deployment of a ballistic missile
capability.
LIMITATION ON ASSISTANCE TO MEXICO

SEC. 587. Not less than $2,500,000 of the funds appropriated
or otherwise made available by this Act for the Government of
Mexico shall be withheld from obligation until the President has
determined and reported to Congress that—
(1) the Government of Mexico is taking actions to reduce
the amount of illegal drugs entering the United States from
Mexico; and
(2) the Government of Mexico—
(A) is taking effective actions to apply vigorously all
law enforcement resources to investigate, track, capture,
incarcerate, and prosecute individuals controlling, supervising, or managing international narcotics cartels or other
similar entities and the accomplices of such individuals,
individuals responsible for, or otherwise involved in, corruption, and individuals involved in money-laundering;
(B) is pursuing international anti-drug trafficking initiatives;
(C) is cooperating fully with international efforts at
narcotics interdiction; and
(D) is cooperating fully with requests by the United
States for assistance in investigations of money-laundering
violations and is making progress toward implementation
of effective laws to prohibit money-laundering.
LIMITATION OF ASSISTANCE TO TURKEY

SEC. 588. Not more than $22,000,000 of the funds appropriated
in this Act under the heading ‘‘Economic Support Fund’’ may be
made available to the Government of Turkey.
CIVIL LIABILITY FOR ACTS OF STATE SPONSORED TERRORISM

SEC. 589. (a) an official, employee, or agent of a foreign state
designated as a state sponsor of terrorism designated under section
6(j) of the Export Administration Act of 1979 while acting within
the scope of his or her office, employment, or agency shall be
liable to a United States national or the national’s legal representative for personal injury or death caused by acts of that official,
employee, or agent for which the courts of the United States may
maintain jurisdiction under section 1605(a)(7) of title 28, United
States Code, for money damages which may include economic damages, solatium, pain, and suffering, and punitive damages if the
acts were among those described in section 1605(a)(7).
(b) Provisions related to statute of limitations and limitations
on discovery that would apply to an action brought under 28 U.S.C.
1605(f) and (g) shall also apply to actions brought under this section.
No action shall be maintained under this action if an official,
employee, or agent of the United States, while acting within the
scope of his or her office, employment, or agency would not be
liable for such acts if carried out within the United States.
Titles I through V of this Act may be cited as the ‘‘Foreign
Operations, Export Financing, and Related Programs Appropriations Act, 1997’’.

28 USC 1605
note.

Short title.

110 STAT. 3009–173
NATO
Enlargement
Facilitation Act
of 1996.
22 USC 1928
note.

PUBLIC LAW 104–208—SEPT. 30, 1996

TITLE VI—NATO ENLARGEMENT FACILITATION ACT OF
1996
SEC. 601. SHORT TITLE.

This title may be cited as the ‘‘NATO Enlargement Facilitation
Act of 1996’’.
SEC. 602. FINDINGS.

The Congress makes the following findings:
(1) Since 1949, the North Atlantic Treaty Organization
(NATO) has played an essential role in guaranteeing the security, freedom, and prosperity of the United States and its partners in the Alliance.
(2) The NATO Alliance is, and has been since its inception,
purely defensive in character, and it poses no threat to any
nation. The enlargement of the NATO Alliance to include as
full and equal members emerging democracies in Central and
Eastern Europe will serve to reinforce stability and security
in Europe by fostering their integration into the structures
which have created and sustained peace in Europe since 1945.
Their admission into NATO will not threaten any nation.
America’s security, freedom, and prosperity remain linked to
the security of the countries of Europe.
(3) The sustained commitment of the member countries
of NATO to a mutual defense has made possible the democratic
transformation of Central and Eastern Europe. Members of
the Alliance can and should play a critical role in addressing
the security challenges of the post-Cold War era and in creating
the stable environment needed for those emerging democracies
in Central and Eastern Europe to successfully complete political
and economic transformation.
(4) The United States continues to regard the political
independence and territorial integrity of all emerging democracies in Central and Eastern Europe as vital to European
peace and security.
(5) The active involvement by the countries of Central
and Eastern Europe has made the Partnership for Peace program an important forum to foster cooperation between NATO
and those countries seeking NATO membership.
(6) NATO has enlarged its membership on 3 different occasions since 1949.
(7) Congress supports the admission of qualified new members to NATO and the European Union at an early date and
has sought to facilitate the admission of qualified new members
into NATO.
(8) Lasting security and stability in Europe requires not
only the military integration of emerging democracies in
Central and Eastern Europe into existing European structures,
but also the eventual economic and political integration of
these countries into existing European structures.
(9) As new members of NATO assume the responsibilities
of Alliance membership, the costs of maintaining stability in
Europe should be shared more widely. Facilitation of the
enlargement process will require current members of NATO,
and the United States in particular, to demonstrate the political
will needed to build on successful ongoing programs such as
the Warsaw Initiative and the Partnership for Peace by making

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–174

available the resources necessary to supplement efforts prospective new members are themselves undertaking.
(10) New members will be full members of the Alliance,
enjoying all rights and assuming all the obligations under the
North Atlantic Treaty, signed at Washington on April 4, 1949
(hereafter in this Act referred to as the ‘‘Washington Treaty’’).
(11) In order to assist emerging democracies in Central
and Eastern Europe that have expressed interest in joining
NATO to be prepared to assume the responsibilities of NATO
membership, the United States should encourage and support
efforts by such countries to develop force structures and force
modernization priorities that will enable such countries to
contribute to the full range of NATO missions, including, most
importantly, territorial defense of the Alliance.
(12) Cooperative regional peacekeeping initiatives involving
emerging democracies in Central and Eastern Europe that have
expressed interest in joining NATO, such as the Baltic Peacekeeping Battalion, the Polish-Lithuanian Joint Peacekeeping
Force, and the Polish-Ukrainian Peacekeeping Force, can make
an important contribution to European peace and security and
international peacekeeping efforts, can assist those countries
preparing to assume the responsibilities of possible NATO membership, and accordingly should receive appropriate support
from the United States.
(13) NATO remains the only multilateral security organization capable of conducting effective military operations and
preserving security and stability of the Euro-Atlantic region.
(14) NATO is an important diplomatic forum and has
played a positive role in defusing tensions between members
of the Alliance and, as a result, no military action has occurred
between two Alliance member states since the inception of
NATO in 1949.
(15) The admission to NATO of emerging democracies in
Central and Eastern Europe which are found to be in a position
to further the principles of the Washington Treaty would
contribute to international peace and enhance the security of
the region. Countries which have become democracies and
established market economies, which practice good neighborly
relations, and which have established effective democratic
civilian control over their defense establishments and attained
a degree of interoperability with NATO, should be evaluated
for their potential to further the principles of the Washington
Treaty.
(16) Democratic civilian control of defense forces is an
essential element in the process of preparation for those states
interested in possible NATO membership.
(17) Protection and promotion of fundamental freedoms
and human rights is an integral aspect of genuine security,
and in evaluating requests for membership in NATO, the
human rights records of the emerging democracies in Central
and Eastern Europe should be evaluated according to their
commitments to fulfill in good faith the human rights obligations of the Charter of the United Nations, the principles of
the Universal Declaration on Human Rights, and the Helsinki
Final Act.
(18) A number of Central and Eastern European countries
have expressed interest in NATO membership, and have taken

110 STAT. 3009–175

PUBLIC LAW 104–208—SEPT. 30, 1996

concrete steps to demonstrate this commitment, including their
participation in Partnership for Peace activities.
(19) The Caucasus region remains important geographically
and politically to the future security of Central Europe. As
NATO proceeds with the process of enlargement, the United
States and NATO should continue to examine means to
strengthen the sovereignty and enhance the security of United
Nations recognized countries in that region.
(20) In recognition that not all countries which have
requested membership in NATO will necessarily qualify at
the same pace, the accession date for each new member will
vary.
(21) The provision of additional NATO transition assistance
should include those emerging democracies most ready for
closer ties with NATO and should be designed to assist other
countries meeting specified criteria of eligibility to move forward toward eventual NATO membership.
(22) The Congress of the United States finds in particular
that Poland, Hungary, and the Czech Republic have made
significant progress toward achieving the criteria set forth in
section 203(d)(3) of the NATO Participation Act of 1994 and
should be eligible for the additional assistance described in
this Act.
(23) The evaluation of future membership in NATO for
emerging democracies in Central and Eastern Europe should
be based on the progress of those nations in meeting criteria
for NATO membership, which require enhancement of NATO’s
security and the approval of all NATO members.
(24) The process of NATO enlargement entails the consensus agreement of the governments of all 16 NATO members
and ratification in accordance with their constitutional procedures.
(25) Some NATO members, such as Spain and Norway,
do not allow the deployment of nuclear weapons on their territory although they are accorded the full collective security
guarantees provided by Article 5 of the Washington Treaty.
There is no a priori requirement for the stationing of nuclear
weapons on the territory of new NATO members, particularly
in the current security climate. However, NATO retains the
right to alter its security posture at any time as circumstances
warrant.
SEC. 603. UNITED STATES POLICY.

It is the policy of the United States—
(1) to join with the NATO allies of the United States
to adapt the role of the NATO Alliance in the post-Cold War
world;
(2) to actively assist the emerging democracies in Central
and Eastern Europe in their transition so that such countries
may eventually qualify for NATO membership;
(3) to support the enlargement of NATO in recognition
that enlargement will benefit the interests of the United States
and the Alliance and to consider these benefits in any analysis
of the costs of NATO enlargement;
(4) to ensure that all countries in Central and Eastern
Europe are fully aware of and capable of assuming the costs

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–176

and responsibilities of NATO membership, including the obligation set forth in Article 10 of the Washington Treaty that
new members be able to contribute to the security of the North
Atlantic area; and
(5) to work to define a constructive and cooperative political
and security relationship between an enlarged NATO and the
Russian Federation.
SEC. 604. SENSE OF THE CONGRESS REGARDING FURTHER ENLARGEMENT OF NATO.

It is the sense of the Congress that in order to promote economic
stability and security in Slovakia, Estonia, Latvia, Lithuania, Romania, Bulgaria, Albania, Moldova, and Ukraine—
(1) the United States should continue and expand its support for the full and active participation of these countries
in activities appropriate for qualifying for NATO membership;
(2) the United States Government should use all diplomatic
means available to press the European Union to admit as
soon as possible any country which qualifies for membership;
(3) the United States Government and the North Atlantic
Treaty Organization should continue and expand their support
for military exercises and peacekeeping initiatives between and
among these nations, nations of the North Atlantic Treaty
Organization, and Russia; and
(4) the process of enlarging NATO to include emerging
democracies in Central and Eastern Europe should not be limited to consideration of admitting Poland, Hungary, the Czech
Republic, and Slovenia as full members of the NATO Alliance.
SEC. 605. SENSE OF THE CONGRESS REGARDING ESTONIA, LATVIA
AND LITHUANIA.

In view of the forcible incorporation of Estonia, Latvia, Lithuania into the Soviet Union in 1940 under the Molotov-Ribbentrop
Pact and the refusal of the United States and other countries
to recognize that incorporation for over 50 years, it is the sense
of the Congress that—
(1) Estonia, Latvia, and Lithuania have valid historical
security concerns that must be taken into account by the United
States; and
(2) Estonia, Latvia, and Lithuania should not be disadvantaged in seeking to join NATO by virtue of their forcible incorporation into the Soviet Union.
SEC. 606. DESIGNATION OF COUNTRIES ELIGIBLE FOR NATO ENLARGEMENT ASSISTANCE.

(a) IN GENERAL.—The following countries are designated as
eligible to receive assistance under the program established under
section 203(a) of the NATO Participation Act of 1994 and shall
be deemed to have been so designated pursuant to section 203(d)(1)
of such Act: Poland, Hungary, and the Czech Republic.
(b) DESIGNATION OF SLOVENIA.—Effective 90 days after the
date of enactment of this Act, Slovenia is designated as eligible
to receive assistance under the program established under section
203(a) of the NATO Participation Act of 1994, and shall be deemed
to have been so designated pursuant to section 203(d) of such
Act, unless the President certifies to Congress prior to such effective
date that Slovenia fails to meet the criteria under section 203(d)(3)
of such Act.

110 STAT. 3009–177

PUBLIC LAW 104–208—SEPT. 30, 1996

(c) DESIGNATION OF OTHER COUNTRIES.—The President shall
designate other emerging democracies in Central and Eastern
Europe as eligible to receive assistance under the program established under section 203(a) of such Act if such countries—
(1) have expressed a clear desire to join NATO;
(2) have begun an individualized dialogue with NATO in
preparation for accession;
(3) are strategically significant to an effective NATO
defense; and
(4) meet the other criteria outlined in section 203(d)(3)
of the NATO Participation Act of 1994 (title II of Public Law
103–447; 22 U.S.C. 1928 note).
(d) RULE OF CONSTRUCTION.—Nothing in this section precludes
the designation by the President of Estonia, Latvia, Lithuania,
Romania, Slovakia, Bulgaria, Albania, Moldova, Ukraine, or any
other emerging democracy in Central and Eastern Europe pursuant
to section 203(d) of the NATO Participation Act of 1994 as eligible
to receive assistance under the program established under section
203(a) of such Act.
SEC. 607. AUTHORIZATION OF APPROPRIATIONS FOR NATO ENLARGEMENT ASSISTANCE.

(a) IN GENERAL.—There are authorized to be appropriated
$60,000,000 for fiscal year 1997 for the program established under
section 203(a) of the NATO Participation Act of 1994.
(b) AVAILABILITY.—Of the funds authorized to be appropriated
by subsection (a)—
(1) not less than $20,000,000 shall be available for the
cost, as defined in section 502(5) of the Credit Reform Act
of 1990, of direct loans pursuant to the authority of section
203(c)(4) of the NATO Participation Act of 1994 (relating to
the ‘‘Foreign Military Financing Program’’);
(2) not less than $30,000,000 shall be available for assistance on a grant basis pursuant to the authority of section
203(c)(4) of the NATO Participation Act of 1994 (relating to
the ‘‘Foreign Military Financing Program’’); and
(3) not more than $10,000,000 shall be available for assistance pursuant to the authority of section 203(c)(3) of the NATO
Participation Act of 1994 (relating to international military
education and training).
(c) RULE OF CONSTRUCTION.—Amounts authorized to be appropriated under this section are authorized to be appropriated in
addition to such amounts as otherwise may be available for such
purposes.
SEC. 608. REGIONAL AIRSPACE INITIATIVE AND PARTNERSHIP FOR
PEACE INFORMATION MANAGEMENT SYSTEM.

(a) IN GENERAL.—To the extent provided in advance in appropriations acts for such purposes, funds described in subsection
(b) are authorized to be made available to support the implementation of the Regional Airspace Initiative and the Partnership for
Peace Information Management System, including—
(1) the procurement of items in support of these programs;
and
(2) the transfer of such items to countries participating
in these programs.
(b) FUNDS DESCRIBED.—Funds described in this subsection are
funds that are available—

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–178

(1) during any fiscal year under the NATO Participation
Act of 1994 with respect to countries eligible for assistance
under that Act; or
(2) during fiscal year 1997 under any Act to carry out
the Warsaw Initiative.
SEC. 609. EXCESS DEFENSE ARTICLES.

(a) PRIORITY DELIVERY.—Notwithstanding any other provision
of law, the delivery of excess defense articles under the authority
of section 203(c) (1) and (2) of the NATO Participation Act of
1994 and section 516 of the Foreign Assistance Act of 1961 shall
be given priority to the maximum extent feasible over the delivery
of such excess defense articles to all other countries except those
countries referred to in section 541 of the Foreign Operations,
Export Financing, and Related Programs Appropriations Act, 1995
(Public Law 103–306; 108 Stat. 1640).
(b) COOPERATIVE REGIONAL PEACEKEEPING INITIATIVES.—The
Congress encourages the President to provide excess defense articles
and other appropriate assistance to cooperative regional peacekeeping initiatives involving emerging democracies in Central and Eastern Europe that have expressed an interest in joining NATO in
order to enhance their ability to contribute to European peace
and security and international peacekeeping efforts.
SEC. 610. MODERNIZATION OF DEFENSE CAPABILITY.

The Congress endorses efforts by the United States to modernize the defense capability of Poland, Hungary, the Czech Republic,
Slovenia, and any other countries designated by the President
pursuant to section 203(d) of the NATO Participation Act of 1994,
by exploring with such countries options for the sale or lease to
such countries of weapons systems compatible with those used
by NATO members, including air defense systems, advanced fighter
aircraft, and telecommunications infrastructure.
SEC. 611. TERMINATION OF ELIGIBILITY.

(a) TERMINATION OF ELIGIBILITY.—The eligibility of a country
designated pursuant to subsection (a) or (b) of section 606 or pursuant to section 203(d) of the NATO Participation Act of 1994 may
be terminated upon a determination by the President that such
country does not meet the criteria set forth in section 203(d)(3)
of the NATO Participation Act of 1994.
(b) NOTIFICATION.—At least 15 days before terminating the
eligibility of any country pursuant to subsection (a), the President
shall notify the congressional committees specified in section 634A
of the Foreign Assistance Act of 1961 in accordance with the procedures applicable to reprogramming notifications under that section.
SEC. 612. CONFORMING AMENDMENTS TO THE NATO PARTICIPATION
ACT.

The NATO Participation Act of 1994 (title II of Public Law
103–447; 22 U.S.C. 1928 note) is amended in sections 203(a),
203(d)(1), and 203(d)(2) by striking ‘‘countries emerging from communist domination’’ each place it appears and inserting ‘‘emerging
democracies in Central and Eastern Europe’’.

110 STAT. 3009–179
Bank for
Economic
Cooperation and
Development in
the Middle East
and North Africa
Act.
22 USC 290o
note.
22 USC 290o.

22 USC 290o–1.

PUBLIC LAW 104–208—SEPT. 30, 1996

TITLE VII—MIDDLE EAST DEVELOPMENT BANK
SEC. 701. SHORT TITLE.

This title may be cited as the ‘‘Bank for Economic Cooperation
and Development in the Middle East and North Africa Act’’.
SEC. 702. ACCEPTANCE OF MEMBERSHIP.

The President is hereby authorized to accept membership for
the United States in the Bank for Economic Cooperation and Development in the Middle East and North Africa (in this title referred
to as the ‘‘Bank’’) provided for by the agreement establishing the
Bank (in this title referred to as the ‘‘Agreement’’), signed on May
31, 1996.
SEC. 703. GOVERNOR AND ALTERNATE GOVERNOR.

(a) APPOINTMENT.—At the inaugural meeting of the Board of
Governors of the Bank, the Governor and the alternate for the
Governor of the International Bank for Reconstruction and Development, appointed pursuant to section 3 of the Bretton Woods Agreements Act, shall serve ex-officio as a Governor and the alternate
for the Governor, respectively, of the Bank. The President, by
and with the advice and consent of the Senate, shall appoint a
Governor of the Bank and an alternate for the Governor.
(b) COMPENSATION.—Any person who serves as a governor of
the Bank or as an alternate for the Governor may not receive
any salary or other compensation from the United States by reason
of such service.
22 USC 290o–2.

SEC. 704. APPLICABILITY OF CERTAIN PROVISIONS OF THE BRETTON
WOODS AGREEMENTS ACT.

Section 4 of the Bretton Woods Agreements Act shall apply
to the Bank in the same manner in which such section applies
to the International Bank for Reconstruction and Development and
the International Monetary Fund.
22 USC 290o–3.

SEC. 705. FEDERAL RESERVE BANKS AS DEPOSITORIES.

Any Federal Reserve Bank which is requested to do so by
the Bank may act as its depository, or as its fiscal agent, and
the Board of Governors of the Federal Reserve System shall exercise
general supervision over the carrying out of these functions.
22 USC 290o–4.

SEC. 706. SUBSCRIPTION OF STOCK.

(a) SUBSCRIPTION AUTHORITY.—
(1) IN GENERAL.—The Secretary of the Treasury may subscribe on behalf of the United States to not more than 7,011,270
shares of the capital stock of the Bank.
(2) EFFECTIVENESS OF SUBSCRIPTION COMMITMENT.—Any
commitment to make such subscription shall be effective only
to such extent or in such amounts as are provided for in
advance by appropriations Acts.
(b) LIMITATIONS ON AUTHORIZATION OF APPROPRIATIONS.—For
payment by the Secretary of the Treasury of the subscription of
the United States for shares described in subsection (a), there
are authorized to be appropriated $1,050,007,800 without fiscal
year limitation.
(c) LIMITATIONS ON OBLIGATION OF APPROPRIATED AMOUNTS
FOR SHARES OF CAPITAL STOCK.—
(1) PAID-IN CAPITAL STOCK.—

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–180

(A) IN GENERAL.—Not more than $105,000,000 of the
amounts appropriated pursuant to subsection (b) may be
obligated for subscription to shares of paid-in capital stock.
(B) FISCAL YEAR 1997.—Not more than $52,500,000 of
the amounts appropriated pursuant to subsection (b) for
fiscal year 1997 may be obligated for subscription to shares
of paid-in capital stock.
(2) CALLABLE CAPITAL STOCK.—Not more than $787,505,852
of the amounts appropriated pursuant to subsection (b) may
be obligated for subscription to shares of callable capital stock.
(d) DISPOSITION OF NET INCOME DISTRIBUTIONS BY THE BANK.—
Any payment made to the United States by the Bank as a distribution of net income shall be covered into the Treasury as a miscellaneous receipt.
SEC. 707. JURISDICTION AND VENUE OF CIVIL ACTIONS BY OR
AGAINST THE BANK.

22 USC 290o–5.

(a) JURISDICTION.—The United States district courts shall have
original and exclusive jurisdiction of any civil action brought in
the United States by or against the Bank.
(b) VENUE.—For purposes of section 1391(b) of title 28, United
States Code, the Bank shall be deemed to be a resident of the
judicial district in which the principal office of the Bank in the
United States, or its agent appointed for the purpose of accepting
service or notice of service, is located.
SEC. 708. EFFECTIVENESS OF AGREEMENT.

22 USC 290o–6.

The Agreement shall have full force and effect in the United
States, its territories and possessions, and the Commonwealth of
Puerto Rico, upon acceptance of membership by the United States
in the Bank and the entry into force of the Agreement.
SEC. 709. EXEMPTION FROM SECURITIES LAWS FOR CERTAIN SECURITIES ISSUED BY THE BANK; REPORTS REQUIRED.

(a) EXEMPTION FROM SECURITIES LAWS; REPORTS TO SECURITIES
EXCHANGE COMMISSION.—Any securities issued by the Bank
(including any guaranty by the Bank, whether or not limited in
scope) in connection with borrowing of funds, or the guarantee
of securities as to both principal and interest, shall be deemed
to be exempted securities within the meaning of section 3(a)(2)
of the Securities Act of 1933 and section 3(a)(12) of the Securities
Exchange Act of 1934. The Bank shall file with the Securities
and Exchange Commission such annual and other reports with
regard to such securities as the Commission shall determine to
be appropriate in view of the special character of the Bank and
its operations and necessary in the public interest or for the protection of investors.
(b) AUTHORITY OF SECURITIES AND EXCHANGE COMMISSION TO
SUSPEND EXEMPTION; REPORTS TO THE CONGRESS.—The Securities
and Exchange Commission, acting in consultation with such agency
or officer as the President shall designate, may suspend the provisions of subsection (a) at any time as to any or all securities
issued or guaranteed by the Bank during the period of such suspension. The Commission shall include in its annual reports to the
Congress such information as it shall deem advisable with regard
to the operations and effect of this section.

AND

22 USC 290o–7.

110 STAT. 3009–181

PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 710. TECHNICAL AMENDMENTS.

(a) ANNUAL REPORT REQUIRED ON PARTICIPATION OF THE
UNITED STATES IN THE BANK.—Section 1701(c)(2) of the International Financial Institutions Act (22 U.S.C. 262r(c)(2)) is amended
by inserting ‘‘Bank for Economic Cooperation and Development
in the Middle East and North Africa,’’ after ‘‘Inter-American Development Bank’’.
(b) EXEMPTION FROM LIMITATIONS AND RESTRICTIONS ON POWER
OF NATIONAL, BANKING ASSOCIATIONS TO DEAL IN AND UNDERWRITE
INVESTMENT SECURITIES OF THE BANK.—The seventh sentence of
paragraph 7 of section 5136 of the Revised Statutes of the United
States (12 U.S.C. 24) is amended by inserting ‘‘Bank for Economic
Cooperation and Development in the Middle East and North Africa,’’
after ‘‘the Inter-American Development Bank’’.
(c) BENEFITS FOR UNITED STATES CITIZEN-REPRESENTATIVES TO
THE BANK.—Section 51 of Public Law 91–599 (22 U.S.C. 276c–
2) is amended by inserting ‘‘the Bank for Economic Cooperation
and Development in the Middle East and North Africa,’’ after ‘‘the
Inter-American Development Bank,’’.
(d) For programs, projects or activities in the Department of
the Interior and Related Agencies Appropriations Act, 1997, provided as follows, to be effective as if it had been enacted into
law as the regular appropriations Act:
Department of
the Interior and
Related Agencies
Appropriations
Act, 1997.

AN ACT
Making appropriations for the Department of the Interior, and related agencies for
the fiscal year ending September 30, 1997, and for other purposes.

TITLE I—DEPARTMENT OF THE INTERIOR
BUREAU

OF

LAND MANAGEMENT

MANAGEMENT OF LANDS AND RESOURCES

For expenses necessary for protection, use, improvement, development, disposal, cadastral surveying, classification, acquisition of
easements and other interests in lands, and performance of other
functions, including maintenance of facilities, as authorized by law,
in the management of lands and their resources under the jurisdiction of the Bureau of Land Management, including the general
administration of the Bureau, and assessment of mineral potential
of public lands pursuant to Public Law 96–487 (16 U.S.C. 3150(a)),
$572,164,000, to remain available until expended, of which
$2,010,000 shall be available for assessment of the mineral potential
of public lands in Alaska pursuant to section 1010 of Public Law
96–487 (16 U.S.C. 3150); and of which $3,000,000 shall be derived
from the special receipt account established by the Land and Water
Conservation Act of 1965, as amended (16 U.S.C. 460l–6a(i)); and
of which $1,000,000 shall be available in fiscal year 1997 subject
to a match by at least an equal amount by the National Fish
and Wildlife Foundation, to such Foundation for challenge cost
share projects supporting fish and wildlife conservation affecting
Bureau lands; in addition, $27,300,000 for Mining Law Administration program operations, to remain available until expended, to
be reduced by amounts collected by the Bureau and credited to
this appropriation from annual mining claim fees so as to result

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–182

in a final appropriation estimated at not more than $572,164,000;
and in addition, not to exceed $5,000,000, to remain available
until expended, from annual mining claim fees; which shall be
credited to this account for the costs of administering the mining
claim fee program, and $2,000,000 from communication site rental
fees established by the Bureau for the cost of administering communication site activities: Provided, That appropriations herein made
shall not be available for the destruction of healthy, unadopted,
wild horses and burros in the care of the Bureau or its contractors:
Provided further, That in fiscal year 1997 and thereafter, all fees,
excluding mining claim fees, in excess of the fiscal year 1996 collections established by the Secretary of the Interior under the authority of 43 U.S.C. 1734 for processing, recording, or documenting
authorizations to use public lands or public land natural resources
(including cultural, historical, and mineral) and for providing specific services to public land users, and which are not presently
being covered into any Bureau of Land Management appropriation
accounts, and not otherwise dedicated by law for a specific distribution, shall be made immediately available for program operations
in this account and remain available until expended.
WILDLAND FIRE MANAGEMENT

For necessary expenses for fire use and management, fire
preparedness, suppression operations, and emergency rehabilitation
by the Department of the Interior, $252,042,000, to remain available
until expended, of which not to exceed $5,025,000 shall be for
the renovation or construction of fire facilities: Provided, That such
funds are also available for repayment of advances to other appropriation accounts from which funds were previously transferred
for such purposes: Provided further, That persons hired pursuant
to 43 U.S.C. 1469 may be furnished subsistence and lodging without
costs from funds available from this appropriation: Provided further,
That unobligated balances of amounts previously appropriated to
the ‘‘Fire Protection’’ and ‘‘Emergency Department of the Interior
Firefighting Fund’’ may be transferred to this appropriation.
CENTRAL HAZARDOUS MATERIALS FUND

For necessary expenses of the Department of the Interior and
any of its component offices and bureaus for the remedial action,
including associated activities, of hazardous waste substances,
pollutants, or contaminants pursuant to the Comprehensive
Environmental Response, Compensation and Liability Act, as
amended (42 U.S.C. 9601 et seq.), $12,000,000, to remain available
until expended: Provided, That notwithstanding 31 U.S.C. 3302,
sums recovered from or paid by a party in advance of or as
reimbursement for remedial action or response activities conducted
by the Department pursuant to sections 107 or 113(f) of such
Act, shall be credited to this account to be available until expended
without further appropriation: Provided further, That such sums
recovered from or paid by any party are not limited to monetary
payments and may include stocks, bonds or other personal or real
property, which may be retained, liquidated, or otherwise disposed
of by the Secretary and which shall be credited to this account.

43 USC 1734a.

110 STAT. 3009–183

PUBLIC LAW 104–208—SEPT. 30, 1996
CONSTRUCTION

For construction of buildings, recreation facilities, roads, trails,
and appurtenant facilities, $4,333,000, to remain available until
expended.
PAYMENTS IN LIEU OF TAXES

For expenses necessary to implement the Act of October 20,
1976, as amended (31 U.S.C. 6901–07), $113,500,000, of which
not to exceed $400,000 shall be available for administrative
expenses.
LAND ACQUISITION

For expenses necessary to carry out sections 205, 206, and
318(d) of Public Law 94–579 including administrative expenses
and acquisition of lands or waters, or interests therein, $10,410,000,
to be derived from the Land and Water Conservation Fund, to
remain available until expended.
OREGON AND CALIFORNIA GRANT LANDS

For expenses necessary for management, protection, and development of resources and for construction, operation, and maintenance of access roads, reforestation, and other improvements on
the revested Oregon and California Railroad grant lands, on other
Federal lands in the Oregon and California land-grant counties
of Oregon, and on adjacent rights-of-way; and acquisition of lands
or interests therein including existing connecting roads on or adjacent to such grant lands; $100,515,000, to remain available until
expended: Provided, That 25 per centum of the aggregate of all
receipts during the current fiscal year from the revested Oregon
and California Railroad grant lands is hereby made a charge against
the Oregon and California land-grant fund and shall be transferred
to the General Fund in the Treasury in accordance with the second
paragraph of subsection (b) of title II of the Act of August 28,
1937 (50 Stat. 876).
RANGE IMPROVEMENTS

For rehabilitation, protection, and acquisition of lands and
interests therein, and improvement of Federal rangelands pursuant
to section 401 of the Federal Land Policy and Management Act
of 1976 (43 U.S.C. 1701), notwithstanding any other Act, sums
equal to 50 per centum of all moneys received during the prior
fiscal year under sections 3 and 15 of the Taylor Grazing Act
(43 U.S.C. 315 et seq.) and the amount designated for range
improvements from grazing fees and mineral leasing receipts from
Bankhead-Jones lands transferred to the Department of the Interior
pursuant to law, but not less than $9,113,000, to remain available
until expended: Provided, That not to exceed $600,000 shall be
available for administrative expenses.
SERVICE CHARGES, DEPOSITS, AND FORFEITURES

For administrative expenses and other costs related to processing application documents and other authorizations for use and
disposal of public lands and resources, for costs of providing copies

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–184

of official public land documents, for monitoring construction, operation, and termination of facilities in conjunction with use
authorizations, and for rehabilitation of damaged property, such
amounts as may be collected under Public Law 94–579, as amended,
and Public Law 93–153, to remain available until expended: Provided, That notwithstanding any provision to the contrary of section
305(a) of Public Law 94–579 (43 U.S.C. 1735(a)), any moneys that
have been or will be received pursuant to that section, whether
as a result of forfeiture, compromise, or settlement, if not appropriate for refund pursuant to section 305(c) of that Act (43 U.S.C.
1735(c)), shall be available and may be expended under the authority of this Act by the Secretary to improve, protect, or rehabilitate
any public lands administered through the Bureau of Land Management which have been damaged by the action of a resource developer, purchaser, permittee, or any unauthorized person, without
regard to whether all moneys collected from each such action are
used on the exact lands damaged which led to the action: Provided
further, That any such moneys that are in excess of amounts needed
to repair damage to the exact land for which funds were collected
may be used to repair other damaged public lands.
MISCELLANEOUS TRUST FUNDS

In addition to amounts authorized to be expended under existing laws, there is hereby appropriated such amounts as may be
contributed under section 307 of the Act of October 21, 1976 (43
U.S.C. 1701), and such amounts as may be advanced for administrative costs, surveys, appraisals, and costs of making conveyances
of omitted lands under section 211(b) of that Act, to remain available
until expended.
ADMINISTRATIVE PROVISIONS

Appropriations for the Bureau of Land Management shall be
available for purchase, erection, and dismantlement of temporary
structures, and alteration and maintenance of necessary buildings
and appurtenant facilities to which the United States has title;
up to $100,000 for payments, at the discretion of the Secretary,
for information or evidence concerning violations of laws administered by the Bureau; miscellaneous and emergency expenses of
enforcement activities authorized or approved by the Secretary and
to be accounted for solely on his certificate, not to exceed $10,000:
Provided, That notwithstanding 44 U.S.C. 501, the Bureau may,
under cooperative cost-sharing and partnership arrangements
authorized by law, procure printing services from cooperators in
connection with jointly-produced publications for which the cooperators share the cost of printing either in cash or in services, and
the Bureau determines the cooperator is capable of meeting accepted
quality standards.
The Bureau of Land Management’s Visitor Center in Rand,
Oregon is hereby named the ‘‘William B. Smullin Visitor Center’’.

43 USC 1735
note.

110 STAT. 3009–185

PUBLIC LAW 104–208—SEPT. 30, 1996
UNITED STATES FISH

AND

WILDLIFE SERVICE

RESOURCE MANAGEMENT

16 USC 742b
note.

For expenses necessary for scientific and economic studies,
conservation, management, investigations, protection, and utilization of fishery and wildlife resources, except whales, seals, and
sea lions, and for the performance of other authorized functions
related to such resources; for the general administration of the
United States Fish and Wildlife Service; for maintenance of the
herd of long-horned cattle on the Wichita Mountains Wildlife Refuge; and not less than $1,000,000 for high priority projects within
the scope of the approved budget which shall be carried out by
the Youth Conservation Corps as authorized by the Act of August
13, 1970, as amended, $523,947,000, to remain available until
September 30, 1998, of which $11,557,000 shall remain available
until expended for operation and maintenance of fishery mitigation
facilities constructed by the Corps of Engineers under the Lower
Snake River Compensation Plan, authorized by the Water Resources
Development Act of 1976, to compensate for loss of fishery resources
from water development projects on the Lower Snake River, and
of which $2,000,000 shall be provided to local governments in southern California for planning associated with the Natural Communities Conservation Planning (NCCP) program and shall remain
available until expended: Provided, That hereafter, pursuant to
31 U.S.C. 9701, the Secretary shall charge reasonable fees for
the full costs of providing training by the National Education and
Training Center, to be credited to this account, notwithstanding
31 U.S.C. 3302, for the direct costs of providing such training.
CONSTRUCTION

For construction and acquisition of buildings and other facilities
required in the conservation, management, investigation, protection,
and utilization of fishery and wildlife resources, and the acquisition
of lands and interests therein; $43,365,000 to remain available
until expended.
NATURAL RESOURCE DAMAGE ASSESSMENT FUND

To conduct natural resource damage assessment activities by
the Department of the Interior necessary to carry out the provisions
of the Comprehensive Environmental Response, Compensation, and
Liability Act, as amended (42 U.S.C. 9601, et seq.), Federal Water
Pollution Control Act, as amended (33 U.S.C. 1251, et seq.), the
Oil Pollution Act of 1990 (Public Law 101–380), and Public Law
101–337; $4,000,000, to remain available until expended.
LAND ACQUISITION

16 USC 668dd
note.

For expenses necessary to carry out the Land and Water Conservation Fund Act of 1965, as amended (16 U.S.C. 460l–4–11),
including administrative expenses, and for acquisition of land or
waters, or interest therein, in accordance with statutory authority
applicable to the United States Fish and Wildlife Service,
$44,479,000, of which $3,000,000 is authorized to be appropriated
and shall be used to establish the Clarks River National Wildlife

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–186

Refuge in Kentucky, to be derived from the Land and Water Conservation Fund, to remain available until expended.
COOPERATIVE ENDANGERED SPECIES CONSERVATION FUND

For expenses necessary to carry out the provisions of the Endangered Species Act of 1973 (16 U.S.C. 1531–1543), as amended,
$14,085,000, for grants to States, to be derived from the Cooperative
Endangered Species Conservation Fund, and to remain available
until expended.
NATIONAL WILDLIFE REFUGE FUND

For expenses necessary to implement the Act of October 17,
1978 (16 U.S.C. 715s), $10,779,000.
REWARDS AND OPERATIONS

For expenses necessary to carry out the provisions of the African Elephant Conservation Act (16 U.S.C. 4201–4203, 4211–4213,
4221–4225, 4241–4245, and 1538), $1,000,000, to remain available
until expended.
NORTH AMERICAN WETLANDS CONSERVATION FUND

For expenses necessary to carry out the provisions of the North
American Wetlands Conservation Act, Public Law 101–233, as
amended, $9,750,000, to remain available until expended.
RHINOCEROS AND TIGER CONSERVATION FUND

For deposit to the Rhinoceros and Tiger Conservation Fund,
$400,000, to remain available until expended, to carry out the
Rhinoceros and Tiger Conservation Act of 1994 (Public Law 103–
391).
WILDLIFE CONSERVATION AND APPRECIATION FUND

For deposit to the Wildlife Conservation and Appreciation Fund,
$800,000, to remain available until expended.
ADMINISTRATIVE PROVISIONS

Appropriations and funds available to the United States Fish
and Wildlife Service shall be available for purchase of not to exceed
83 passenger motor vehicles of which 73 are for replacement only
(including 43 for police-type use); not to exceed $400,000 for payment, at the discretion of the Secretary, for information, rewards,
or evidence concerning violations of laws administered by the Service, and miscellaneous and emergency expenses of enforcement
activities, authorized or approved by the Secretary and to be
accounted for solely on his certificate; repair of damage to public
roads within and adjacent to reservation areas caused by operations
of the Service; options for the purchase of land at not to exceed
$1 for each option; facilities incident to such public recreational
uses on conservation areas as are consistent with their primary
purpose; and the maintenance and improvement of aquaria, buildings, and other facilities under the jurisdiction of the Service and

110 STAT. 3009–187

PUBLIC LAW 104–208—SEPT. 30, 1996

to which the United States has title, and which are utilized pursuant to law in connection with management and investigation of
fish and wildlife resources: Provided, That notwithstanding 44
U.S.C. 501, the Service may, under cooperative cost sharing and
partnership arrangements authorized by law, procure printing services from cooperators in connection with jointly-produced publications for which the cooperators share at least one-half the cost
of printing either in cash or services and the Service determines
the cooperator is capable of meeting accepted quality standards:
Provided further, That the Service may accept donated aircraft
as replacements for existing aircraft: Provided further, That notwithstanding any other provision of law, the Secretary of the
Interior may not spend any of the funds appropriated in this Act
for the purchase of lands or interests in lands to be used in the
establishment of any new unit of the National Wildlife Refuge
System unless the purchase is approved in advance by the House
and Senate Committees on Appropriations in compliance with the
reprogramming procedures contained in House Report 103–551:
Provided further, That section 101(c) of the Omnibus Consolidated
Rescissions and Appropriations Act of 1996 is amended in section
315(c)(1)(E) (110 Stat. 1321–201; 16 U.S.C. 460l–6a note) by striking
‘‘distributed in accordance with section 201(c) of the Emergency
Wetlands Resources Act’’ and inserting ‘‘available to the Secretary
of the Interior until expended to be used in accordance with clauses
(i), (ii), and (iii) of section 201(c)(A) of the Emergency Wetlands
Resources Act of 1986 (16 U.S.C. 3911(c)(A))’’.
NATIONAL PARK SERVICE
OPERATION OF THE NATIONAL PARK SYSTEM

For expenses necessary for the management, operation, and
maintenance of areas and facilities administered by the National
Park Service (including special road maintenance service to trucking
permittees on a reimbursable basis), and for the general administration of the National Park Service, including not to exceed $1,593,000
for the Volunteers-in-Parks program, and not less than $1,000,000
for high priority projects within the scope of the approved budget
which shall be carried out by the Youth Conservation Corps as
authorized by 16 U.S.C. 1706, $1,152,311,000, without regard to
16 U.S.C. 451, of which $8,000,000 for research, planning and
interagency coordination in support of land acquisition for Everglades restoration shall remain available until expended, and of
which not to exceed $72,000,000, to remain available until expended,
is to be derived from the special fee account established pursuant
to title V, section 5201, of Public Law 100–203.
NATIONAL RECREATION AND PRESERVATION

For expenses necessary to carry out recreation programs, natural programs, cultural programs, environmental compliance and
review, international park affairs, statutory or contractual aid for
other activities, and grant administration, not otherwise provided
for, $37,976,000.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–188

HISTORIC PRESERVATION FUND

For expenses necessary in carrying out the Historic Preservation Act of 1966, as amended (16 U.S.C. 470), $36,612,000, to
be derived from the Historic Preservation Fund, to remain available
until September 30, 1998.
CONSTRUCTION

For construction, improvements, repair or replacement of physical facilities including the modifications authorized by section 104
of the Everglades National Park Protection and Expansion Act
of 1989, $163,444,000, to remain available until expended, of which
$270,000 shall be used for appropriate fish restoration projects
not related to dam removal including reimbursement to the State
of Washington for emergency actions taken to protect the 1996
run of fall chinook salmon on the Elwha River: Provided, That
funds previously provided under this heading that had been made
available to the City of Hot Springs, Arkansas, to be used for
a flood protection feasibility study, are now made available to
the City of Hot Springs for the rehabilitation of the Federallyconstructed Hot Springs Creek Arch, including the portion within
Hot Springs National Park.
LAND AND WATER CONSERVATION FUND
(RESCISSION)

The contract authority provided for fiscal year 1997 by 16
U.S.C. 460l–10a is rescinded.
LAND ACQUISITION AND STATE ASSISTANCE

For expenses necessary to carry out the Land and Water Conservation Fund Act of 1965, as amended (16 U.S.C. 460l–4–11),
including administrative expenses, and for acquisition of lands or
waters, or interest therein, in accordance with statutory authority
applicable to the National Park Service, $53,915,000, to be derived
from the Land and Water Conservation Fund, to remain available
until expended, of which $1,500,000 is to administer the State
assistance program: Provided, That any funds made available for
the purpose of acquisition of the Elwha and Glines dams shall
be used solely for acquisition, and shall not be expended until
the full purchase amount has been appropriated by the Congress:
Provided further, That of the funds provided herein, $9,000,000
is available for acquisition of the Sterling Forest, subject to
authorization.
ADMINISTRATIVE PROVISIONS

Appropriations for the National Park Service shall be available
for the purchase of not to exceed 404 passenger motor vehicles,
of which 287 shall be for replacement only, including not to exceed
320 for police-type use, 13 buses, and 6 ambulances: Provided,
That none of the funds appropriated to the National Park Service
may be used to process any grant or contract documents which
do not include the text of 18 U.S.C. 1913: Provided further, That
none of the funds appropriated to the National Park Service may
be used to implement an agreement for the redevelopment of the

16 USC 460l–10a
note.

110 STAT. 3009–189

16 USC 1g.

PUBLIC LAW 104–208—SEPT. 30, 1996

southern end of Ellis Island until such agreement has been submitted to the Congress and shall not be implemented prior to the
expiration of 30 calendar days (not including any day in which
either House of Congress is not in session because of adjournment
of more than three calendar days to a day certain) from the receipt
by the Speaker of the House of Representatives and the President
of the Senate of a full and comprehensive report on the development
of the southern end of Ellis Island, including the facts and circumstances relied upon in support of the proposed project.
None of the funds in this Act may be spent by the National
Park Service for activities taken in direct response to the United
Nations Biodiversity Convention.
The National Park Service may in fiscal year 1997 and thereafter enter into cooperative agreements that involve the transfer
of National Park Service appropriated funds to State, local and
tribal governments, other public entities, educational institutions,
and private nonprofit organizations for the public purpose of carrying out National Park Service programs pursuant to 31 U.S.C.
6305 to carry out public purposes of National Park Service programs.
Notwithstanding any other provision of law, remaining balances, including interest, from funds granted to the National Park
Foundation pursuant to the National Park System Visitor Facilities
Fund Act of 1983 (Public Law 97–433, 96 Stat. 2277) shall be
available to the National Park Foundation for expenditure in units
of the National Park System for the purpose of improving visitor
facilities.
UNITED STATES GEOLOGICAL SURVEY
SURVEYS, INVESTIGATIONS, AND RESEARCH

43 USC 31j.

For expenses necessary for the United States Geological Survey
to perform surveys, investigations, and research covering topography, geology, hydrology, and the mineral and water resources
of the United States, its Territories and possessions, and other
areas as authorized by 43 U.S.C. 31, 1332 and 1340; classify lands
as to their mineral and water resources; give engineering supervision to power permittees and Federal Energy Regulatory Commission licensees; administer the minerals exploration program (30
U.S.C. 641); and publish and disseminate data relative to the foregoing activities; and to conduct inquiries into the economic conditions affecting mining and materials processing industries (30
U.S.C. 3, 21a, and 1603; 50 U.S.C. 98g(1)) and related purposes
as authorized by law and to publish and disseminate data;
$738,913,000 of which $64,559,000 shall be available only for
cooperation with States or municipalities for water resources investigations; and of which $16,000,000 shall remain available until
expended for conducting inquiries into the economic conditions
affecting mining and materials processing industries; and of which
$137,500,000 shall be available until September 30, 1998 for the
biological research activity and the operation of the Cooperative
Research Units: Provided, That none of these funds provided for
the biological research activity shall be used to conduct new surveys
on private property, unless specifically authorized in writing by
the property owner: Provided further, That beginning in fiscal year
1998 and once every five years thereafter, the National Academy

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–190

of Sciences shall review and report on the biological research activity of the Survey: Provided further, That no part of this appropriation shall be used to pay more than one-half the cost of topographic
mapping or water resources data collection and investigations carried on in cooperation with States and municipalities.
ADMINISTRATIVE PROVISIONS

The amount appropriated for the United States Geological Survey shall be available for the purchase of not to exceed 53 passenger
motor vehicles, of which 48 are for replacement only; reimbursement
to the General Services Administration for security guard services;
contracting for the furnishing of topographic maps and for the
making of geophysical or other specialized surveys when it is
administratively determined that such procedures are in the public
interest; construction and maintenance of necessary buildings and
appurtenant facilities; acquisition of lands for gauging stations and
observation wells; expenses of the United States National Committee on Geology; and payment of compensation and expenses of
persons on the rolls of the Survey duly appointed to represent
the United States in the negotiation and administration of interstate
compacts: Provided, That activities funded by appropriations herein
made may be accomplished through the use of contracts, grants,
or cooperative agreements as defined in 31 U.S.C. 6302, et seq.
MINERALS MANAGEMENT SERVICE
ROYALTY AND OFFSHORE MINERALS MANAGEMENT

For expenses necessary for minerals leasing and environmental
studies, regulation of industry operations, and collection of royalties,
as authorized by law; for enforcing laws and regulations applicable
to oil, gas, and other minerals leases, permits, licenses and operating contracts; and for matching grants or cooperative agreements;
including the purchase of not to exceed eight passenger motor
vehicles for replacement only; $156,955,000, of which not less than
$70,063,000 shall be available for royalty management activities;
and an amount not to exceed $41,000,000 for the Technical Information Management System and activities of the Outer Continental
Shelf (OCS) Lands Activity, to be credited to this appropriation
and to remain available until expended, from additions to receipts
resulting from increases to rates in effect on August 5, 1993, from
rate increases to fee collections for OCS administrative activities
performed by the Minerals Management Service over and above
the rates in effect on September 30, 1993, and from additional
fees for OCS administrative activities established after September
30, 1993: Provided, That $1,500,000 for computer acquisitions shall
remain available until September 30, 1998: Provided further, That
funds appropriated under this Act shall be available for the payment
of interest in accordance with 30 U.S.C. 1721 (b) and (d): Provided
further, That not to exceed $3,000 shall be available for reasonable
expenses related to promoting volunteer beach and marine cleanup
activities: Provided further, That notwithstanding any other provision of law, $15,000 under this head shall be available for refunds
of overpayments in connection with certain Indian leases in which
the Director of the Minerals Management Service concurred with
the claimed refund due, to pay amounts owed to Indian allottees
or Tribes, or to correct prior unrecoverable erroneous payments.

43 USC 50.

110 STAT. 3009–191

PUBLIC LAW 104–208—SEPT. 30, 1996
OIL SPILL RESEARCH

For necessary expenses to carry out title I, section 1016, title
IV, sections 4202 and 4303, title VII, and title VIII, section 8201
of the Oil Pollution Act of 1990, $6,440,000, which shall be derived
from the Oil Spill Liability Trust Fund, to remain available until
expended.
OFFICE

OF

SURFACE MINING RECLAMATION

AND

ENFORCEMENT

REGULATION AND TECHNOLOGY

30 USC 1211
note.

For necessary expenses to carry out the provisions of the Surface Mining Control and Reclamation Act of 1977, Public Law
95–87, as amended, including the purchase of not to exceed 10
passenger motor vehicles, for replacement only; $94,172,000, and
notwithstanding 31 U.S.C. 3302, an additional amount shall be
credited to this account, to remain available until expended, from
performance bond forfeitures in fiscal year 1997: Provided, That
the Secretary of the Interior, pursuant to regulations, may utilize
directly or through grants to States, moneys collected in fiscal
year 1997 for civil penalties assessed under section 518 of the
Surface Mining Control and Reclamation Act of 1977 (30 U.S.C.
1268), to reclaim lands adversely affected by coal mining practices
after August 3, 1977, to remain available until expended: Provided
further, That appropriations for the Office of Surface Mining Reclamation and Enforcement may provide for the travel and per
diem expenses of State and tribal personnel attending Office of
Surface Mining Reclamation and Enforcement sponsored training.
ABANDONED MINE RECLAMATION FUND

For necessary expenses to carry out title IV of the Surface
Mining Control and Reclamation Act of 1977, Public Law 95–87,
as amended, including the purchase of not more than 10 passenger
motor vehicles for replacement only, $177,085,000, to be derived
from receipts of the Abandoned Mine Reclamation Fund and to
remain available until expended; of which up to $4,000,000 shall
be for supplemental grants to States for the reclamation of abandoned sites with acid mine rock drainage from coal mines through
the Appalachian Clean Streams Initiative: Provided, That grants
to minimum program States will be $1,500,000 per State in fiscal
year 1997: Provided further, That of the funds herein provided
up to $18,000,000 may be used for the emergency program authorized by section 410 of Public Law 95–87, as amended, of which
no more than 25 per centum shall be used for emergency reclamation projects in any one State and funds for federally-administered
emergency reclamation projects under this proviso shall not exceed
$11,000,000: Provided further, That prior year unobligated funds
appropriated for the emergency reclamation program shall not be
subject to the 25 per centum limitation per State and may be
used without fiscal year limitation for emergency projects: Provided
further, That pursuant to Public Law 97–365, the Department
of the Interior is authorized to use up to 20 per centum from
the recovery of the delinquent debt owed to the United States
Government to pay for contracts to collect these debts: Provided
further, That funds made available to States under title IV of
Public Law 95–87 may be used, at their discretion, for any required

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–192

non-Federal share of the cost of projects funded by the Federal
Government for the purpose of environmental restoration related
to treatment or abatement of acid mine drainage from abandoned
mines: Provided further, That such projects must be consistent
with the purposes and priorities of the Surface Mining Control
and Reclamation Act: Provided further, That the State of Maryland
may set aside the greater of $1,000,000 or 10 percent of the total
of the grants made available to the State under title IV of the
Surface Mining Control and Reclamation Act of 1977, as amended
(30 U.S.C. 1231 et. seq.), if the amount set aside is deposited
in an acid mine drainage abatement and treatment fund established
under a State law, pursuant to which law the amount (together
with all interest earned on the amount) is expended by the State
to undertake acid mine drainage abatement and treatment projects,
except that before any amounts greater than 10 percent of its
title IV grants are deposited in an acid mine drainage abatement
and treatment fund, the State of Maryland must first complete
all Surface Mining Control and Reclamation Act priority one
projects.
BUREAU

OF INDIAN

AFFAIRS

OPERATION OF INDIAN PROGRAMS

For operation of Indian programs by direct expenditure, contracts, cooperative agreements, compacts, and grants including
expenses necessary to provide education and welfare services for
Indians, either directly or in cooperation with States and other
organizations, including payment of care, tuition, assistance, and
other expenses of Indians in boarding homes, or institutions, or
schools; grants and other assistance to needy Indians; maintenance
of law and order; management, development, improvement, and
protection of resources and appurtenant facilities under the jurisdiction of the Bureau, including payment of irrigation assessments
and charges; acquisition of water rights; advances for Indian industrial and business enterprises; operation of Indian arts and crafts
shops and museums; development of Indian arts and crafts, as
authorized by law; for the general administration of the Bureau,
including such expenses in field offices; maintaining of Indian reservation roads as defined in 23 U.S.C. 101; and construction, repair,
and improvement of Indian housing, $1,436,902,000, of which not
to exceed $86,520,000 shall be for welfare assistance payments
and not to exceed $90,829,000 shall be for payments to tribes
and tribal organizations for contract support costs associated with
ongoing contracts or grants or compacts entered into with the
Bureau prior to fiscal year 1997, as authorized by the Indian
Self-Determination Act of 1975, as amended, and up to $5,000,000
shall be for the Indian Self-Determination Fund, which shall be
available for the transitional cost of initial or expanded tribal contracts, grants, compacts, or cooperative agreements with the Bureau
under such Act; and of which not to exceed $365,124,000 for school
operations costs of Bureau-funded schools and other education programs shall become available on July 1, 1997, and shall remain
available until September 30, 1998; and of which not to exceed
$53,805,000 for higher education scholarships, adult vocational
training, and assistance to public schools under 25 U.S.C. 452
et seq., shall remain available until September 30, 1998; and of

110 STAT. 3009–193

25 USC 2012
note.

PUBLIC LAW 104–208—SEPT. 30, 1996

which not to exceed $54,973,000 shall remain available until
expended for housing improvement, road maintenance, attorney
fees, litigation support, self-governance grants, the Indian SelfDetermination Fund, and the Navajo-Hopi Settlement Program:
Provided, That tribes and tribal contractors may use their tribal
priority allocations for unmet indirect costs of ongoing contracts,
grants
or
compact
agreements
and
for
unmet
welfare assistance costs: Provided further, That funds made available to tribes and tribal organizations through contracts or grants
obligated during fiscal year 1997, as authorized by the Indian
Self-Determination Act of 1975, or grants authorized by the Indian
Education Amendments of 1988 (25 U.S.C. 2001 and 2008A) shall
remain available until expended by the contractor or grantee: Provided further, That to provide funding uniformity within a SelfGovernance Compact, any funds provided in this Act with availability for more than one year may be reprogrammed to one year
availability but shall remain available within the Compact until
expended: Provided further, That notwithstanding any other provision of law, Indian tribal governments may, by appropriate changes
in eligibility criteria or by other means, change eligibility for general
assistance or change the amount of general assistance payments
for individuals within the service area of such tribe who are otherwise deemed eligible for general assistance payments so long as
such changes are applied in a consistent manner to individuals
similarly situated: Provided further, That any savings realized by
such changes shall be available for use in meeting other priorities
of the tribes: Provided further, That any net increase in costs
to the Federal Government which result solely from tribally
increased payment levels for general assistance shall be met exclusively from funds available to the tribe from within its tribal priority
allocation: Provided further, That any forestry funds allocated to
a tribe which remain unobligated as of September 30, 1997, may
be transferred during fiscal year 1998 to an Indian forest land
assistance account established for the benefit of such tribe within
the tribe’s trust fund account: Provided further, That any such
unobligated balances not so transferred shall expire on September
30, 1998: Provided further, That notwithstanding any other provision of law, no funds available to the Bureau, other than the
amounts provided herein for assistance to public schools under
25 U.S.C. 452 et seq., shall be available to support the operation
of any elementary or secondary school in the State of Alaska in
fiscal year 1997: Provided further, That funds made available in
this or any other Act for expenditure through September 30, 1998
for schools funded by the Bureau shall be available only to the
schools in the Bureau school system as of September 1, 1995:
Provided further, That no funds available to the Bureau shall
be used to support expanded grades for any school or dormitory
beyond the grade structure in place or approved by the Secretary
of the Interior at each school in the Bureau school system as
of October 1, 1995: Provided further, That in fiscal year 1997
and thereafter, notwithstanding the provisions of 25 U.S.C.
2012(h)(1) (A) and (B), upon the recommendation of either (i) a
local school board and school supervisor for an education position
in a Bureau of Indian Affairs operated school, or (ii) an Agency
school board and education line officer for an Agency education
position, the Secretary shall establish adjustments to the rates
of basic compensation or annual salary rates established under

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–194

25 U.S.C. 2012(h)(1) (A) and (B) for education positions at the
school or the Agency, at a level not less than that for comparable
positions in the nearest public school district, and the adjustment
shall be deemed to be a change to basic pay and shall not be
subject to collective bargaining: Provided further, That any reduction to rates of basic compensation or annual salary rates below
the rates established under 25 U.S.C. 2012(h)(1) (A) and (B) shall
apply only to educators appointed after June 30, 1997, and shall
not affect the right of an individual employed on June 30, 1997,
in an education position, to receive the compensation attached
to such position under 25 U.S.C. 2012(h)(1) (A) and (B) so long
as the individual remains in the same position at the same school:
Provided further, That notwithstanding 25 U.S.C. 2012(h)(1)(B),
when the rates of basic compensation for teachers and counselors
at Bureau-operated schools are established at the rates of basic
compensation applicable to comparable positions in overseas schools
under the Defense Department Overseas Teachers Pay and Personnel Practices Act, such rates shall become effective with the start
of the next academic year following the issuance of the Department
of Defense salary schedule and shall not be effected retroactively.
CONSTRUCTION

For construction, major repair, and improvement of irrigation
and power systems, buildings, utilities, and other facilities, including architectural and engineering services by contract; acquisition
of lands, and interests in lands; and preparation of lands for farming, and for construction of the Navajo Indian Irrigation Project
pursuant to Public Law 87–483, $94,531,000, to remain available
until expended: Provided, That such amounts as may be available
for the construction of the Navajo Indian Irrigation Project may
be transferred to the Bureau of Reclamation: Provided further,
That not to exceed 6 per centum of contract authority available
to the Bureau of Indian Affairs from the Federal Highway Trust
Fund may be used to cover the road program management costs
of the Bureau: Provided further, That any funds provided for the
Safety of Dams program pursuant to 25 U.S.C. 13 shall be made
available on a non-reimbursable basis: Provided further, That for
fiscal year 1997, in implementing new construction or facilities
improvement and repair project grants in excess of $100,000 that
are provided to tribally controlled grant schools under Public Law
100–297, as amended, the Secretary of the Interior shall use the
Administrative and Audit Requirements and Cost Principles for
Assistance Programs contained in 43 CFR part 12 as the regulatory
requirements: Provided further, That such grants shall not be subject to section 12.61 of 43 CFR; the Secretary and the grantee
shall negotiate and determine a schedule of payments for the work
to be performed: Provided further, That in considering applications,
the Secretary shall consider whether the Indian tribe or tribal
organization would be deficient in assuring that the construction
projects conform to applicable building standards and codes and
Federal, tribal, or State health and safety standards as required
by 25 U.S.C. 2005(a), with respect to organizational and financial
management capabilities: Provided further, That if the Secretary
declines an application, the Secretary shall follow the requirements
contained in 25 U.S.C. 2505(f): Provided further, That any disputes

110 STAT. 3009–195

PUBLIC LAW 104–208—SEPT. 30, 1996

between the Secretary and any grantee concerning a grant shall
be subject to the disputes provision in 25 U.S.C. 2508(e).
INDIAN LAND AND WATER CLAIM SETTLEMENTS AND MISCELLANEOUS
PAYMENTS TO INDIANS

For miscellaneous payments to Indian tribes and individuals
and for necessary administrative expenses, $69,241,000, to remain
available until expended; of which $68,400,000 shall be available
for implementation of enacted Indian land and water claim settlements pursuant to Public Laws 101–618, 102–374, 102–575, and
for implementation of other enacted water rights settlements,
including not to exceed $8,000,000, which shall be for the Federal
share of the Catawba Indian Tribe of South Carolina Claims Settlement, as authorized by section 5(a) of Public Law 103–116; and
of which $841,000 shall be available pursuant to Public Laws 98–
500, 99–264, and 100–580.
INDIAN GUARANTEED LOAN PROGRAM ACCOUNT

For the cost of guaranteed loans, $4,500,000, as authorized
by the Indian Financing Act of 1974, as amended: Provided, That
such costs, including the cost of modifying such loans, shall be
as defined in section 502 of the Congressional Budget Act of 1974:
Provided further, That these funds are available to subsidize total
loan principal, any part of which is to be guaranteed, not to exceed
$34,615,000.
In addition, for administrative expenses to carry out the
guaranteed loan programs, $500,000.
ADMINISTRATIVE PROVISIONS

Appropriations for the Bureau of Indian Affairs (except the
revolving fund for loans, the Indian loan guarantee and insurance
fund, the Technical Assistance of Indian Enterprises account, the
Indian Direct Loan Program account, and the Indian Guaranteed
Loan Program account) shall be available for expenses of exhibits,
and purchase of not to exceed 229 passenger motor vehicles, of
which not to exceed 187 shall be for replacement only.
Notwithstanding any other provision of law, no funds available
to the Bureau of Indian Affairs for central office operations or
pooled overhead general administration shall be available for tribal
contracts, grants, compacts, or cooperative agreements with the
Bureau of Indian Affairs under the provisions of the Indian SelfDetermination Act or the Tribal Self-Governance Act of 1994 (Public
Law 103–413).
DEPARTMENTAL OFFICES
INSULAR AFFAIRS
ASSISTANCE TO TERRITORIES

For expenses necessary for assistance to territories under the
jurisdiction of the Department of the Interior, $65,188,000, of which
(1) $61,339,000 shall be available until expended for technical
assistance, including maintenance assistance, disaster assistance,
insular management controls, and brown tree snake control and

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–196

research; grants to the judiciary in American Samoa for compensation and expenses, as authorized by law (48 U.S.C. 1661(c)); grants
to the Government of American Samoa, in addition to current
local revenues, for construction and support of governmental functions; grants to the Government of the Virgin Islands as authorized
by law; grants to the Government of Guam, as authorized by law;
and grants to the Government of the Northern Mariana Islands
as authorized by law (Public Law 94–241; 90 Stat. 272); and (2)
$3,849,000 shall be available for salaries and expenses of the Office
of Insular Affairs: Provided, That all financial transactions of the
territorial and local governments herein provided for, including
such transactions of all agencies or instrumentalities established
or utilized by such governments, may be audited by the General
Accounting Office, at its discretion, in accordance with chapter
35 of title 31, United States Code: Provided further, That Northern
Mariana Islands Covenant grant funding shall be provided according to those terms of the Agreement of the Special Representatives
on Future United States Financial Assistance for the Northern
Mariana Islands approved by Public Law 99–396, or any subsequent
legislation related to Commonwealth of the Northern Mariana
Islands grant funding: Provided further, That section 703(a) of
Public Law 94–241, as amended, is hereby amended by striking
‘‘of the Government of the Northern Mariana Islands’’: Provided
further, That of the amounts provided for technical assistance,
sufficient funding shall be made available for a grant to the Close
Up Foundation: Provided further, That the funds for the program
of operations and maintenance improvement are appropriated to
institutionalize routine operations and maintenance improvement
of capital infrastructure in American Samoa, Guam, the Virgin
Islands, the Commonwealth of the Northern Mariana Islands, the
Republic of Palau, the Republic of the Marshall Islands, and the
Federated States of Micronesia through assessments of long-range
operations maintenance needs, improved capability of local operations and maintenance institutions and agencies (including
management and vocational education training), and project-specific
maintenance (with territorial participation and cost sharing to be
determined by the Secretary based on the individual territory’s
commitment to timely maintenance of its capital assets): Provided
further, That any appropriation for disaster assistance under this
head in this Act or previous appropriations Acts may be used
as non-Federal matching funds for the purpose of hazard mitigation
grants provided pursuant to section 404 of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170c).
COMPACT OF FREE ASSOCIATION

For economic assistance and necessary expenses for the Federated States of Micronesia and the Republic of the Marshall Islands
as provided for in sections 122, 221, 223, 232, and 233 of the
Compacts of Free Association, and for economic assistance and
necessary expenses for the Republic of Palau as provided for in
sections 122, 221, 223, 232, and 233 of the Compact of Free Association, $23,538,000, to remain available until expended, as authorized
by Public Law 99–239 and Public Law 99–658.

48 USC 1469b.

48 USC 1801
note.

110 STAT. 3009–197

PUBLIC LAW 104–208—SEPT. 30, 1996
DEPARTMENTAL MANAGEMENT
SALARIES AND EXPENSES

For necessary expenses for management of the Department
of the Interior, $58,286,00,1 of which not to exceed $7,500 may
be for official reception and representation expenses, and of which
up to $2,000,000 shall be available for workers compensation payments and unemployment compensation payments associated with
the orderly closure of the United States Bureau of Mines
OFFICE

OF THE

SOLICITOR

SALARIES AND EXPENSES

For necessary
$35,443,000.

expenses

OFFICE

of

the

OF INSPECTOR

Office

of

the

Solicitor,

GENERAL

SALARIES AND EXPENSES

For necessary expenses of the Office of Inspector General,
$24,439,000, together with any funds or property transferred to
the Office of Inspector General through forfeiture proceedings or
from the Department of Justice Assets Forfeiture Fund or the
Department of the Treasury Assets Forfeiture Fund, that represent
an equitable share from the forfeiture of property in investigations
in which the Office of Inspector General participated, with such
transferred funds to remain available until expended.
NATIONAL INDIAN GAMING COMMISSION
SALARIES AND EXPENSES

For necessary expenses of the National Indian Gaming Commission, pursuant to Public Law 100–497, $1,000,000.
OFFICE

OF

SPECIAL TRUSTEE

FOR

AMERICAN INDIANS

FEDERAL TRUST PROGRAMS

For operation of trust programs for Indians by direct expenditure, contracts, cooperative agreements, compacts, and grants,
$32,126,000, to remain available until expended for trust funds
management: Provided, That funds made available to tribes and
tribal organizations through contracts or grants obligated during
fiscal year 1997, as authorized by the Indian Self-Determination
Act of 1975 (25 U.S.C. 450 et seq.), shall remain available until
expended by the contractor or grantee: Provided further, That notwithstanding any other provision of law, the statute of limitations
shall not commence to run on any claim, including any claim
in litigation pending on the date of this Act, concerning losses
to or mismanagement of trust funds, until the affected tribe or
individual Indian has been furnished with an accounting of such
funds from which the beneficiary can determine whether there
1 Remainder

of figure missing, complete figure probably should read ‘‘$58,286,000’’.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–198

has been a loss: Provided further, That unobligated balances previously made available (1) to liquidate obligations owed tribal and
individual Indian payees of any checks canceled pursuant to section
1003 of the Competitive Equality Banking Act of 1987 (Public
Law 100–86; 31 U.S.C. 3334(b)), (2) to restore Individual Indian
Monies trust funds, Indian Irrigation Systems, and Indian Power
Systems accounts amounts invested in credit unions or defaulted
savings and loan associations and which where not Federally
insured, including any interest on these amounts that may have
been earned, but was not because of the default, and (3) to
reimburse Indian trust fund account holders for losses to their
respective accounts where the claim for said loss has been reduced
to a judgement or settlement agreement approved by the Department of Justice, under the heading ‘‘Indian Land and Water Claim
Settlements and Miscellaneous Payments to Indians’’, Bureau of
Indian Affairs in fiscal years 1995 and 1996, are hereby transferred
to and merged with this appropriation and may only be used for
the operation of trust programs, in accordance with this appropriation.
ADMINISTRATIVE PROVISIONS
There is hereby authorized for acquisition from available
resources within the Working Capital Fund, 15 aircraft, 10 of which
shall be for replacement and which may be obtained by donation,
purchase or through available excess surplus property: Provided,
That notwithstanding any other provision of law, existing aircraft
being replaced may be sold, with proceeds derived or trade-in value
used to offset the purchase price for the replacement aircraft: Provided further, That no programs funded with appropriated funds
in ‘‘Departmental Management’’, ‘‘Office of the Solicitor’’, and ‘‘Office
of Inspector General’’ may be augmented through the Working
Capital Fund or the Consolidated Working Fund.
GENERAL PROVISIONS, DEPARTMENT OF THE INTERIOR
SEC. 101. Appropriations made in this title shall be available
for expenditure or transfer (within each bureau or office), with
the approval of the Secretary, for the emergency reconstruction,
replacement, or repair of aircraft, buildings, utilities, or other facilities or equipment damaged or destroyed by fire, flood, storm, or
other unavoidable causes: Provided, That no funds shall be made
available under this authority until funds specifically made available to the Department of the Interior for emergencies shall have
been exhausted: Provided further, That all funds used pursuant
to this section are hereby designated by Congress to be ‘‘emergency
requirements’’ pursuant to section 251(b)(2)(D) of the Balanced
Budget and Emergency Deficit Control Act of 1985, and must be
replenished by a supplemental appropriation which must be
requested as promptly as possible.
SEC. 102. The Secretary may authorize the expenditure or
transfer of any no year appropriation in this title, in addition
to the amounts included in the budget programs of the several
agencies, for the suppression or emergency prevention of forest
or range fires on or threatening lands under the jurisdiction of
the Department of the Interior; for the emergency rehabilitation
of burned-over lands under its jurisdiction; for emergency actions
related to potential or actual earthquakes, floods, volcanoes, storms,

110 STAT. 3009–199

PUBLIC LAW 104–208—SEPT. 30, 1996

or other unavoidable causes; for contingency planning subsequent
to actual oilspills; response and natural resource damage assessment activities related to actual oilspills; for the prevention, suppression, and control of actual or potential grasshopper and Mormon
cricket outbreaks on lands under the jurisdiction of the Secretary,
pursuant to the authority in section 1773(b) of Public Law 99–
198 (99 Stat. 1658); for emergency reclamation projects under section 410 of Public Law 95–87; and shall transfer, from any no
year funds available to the Office of Surface Mining Reclamation
and Enforcement, such funds as may be necessary to permit assumption of regulatory authority in the event a primacy State
is not carrying out the regulatory provisions of the Surface Mining
Act: Provided, That appropriations made in this title for fire suppression purposes shall be available for the payment of obligations
incurred during the preceding fiscal year, and for reimbursement
to other Federal agencies for destruction of vehicles, aircraft, or
other equipment in connection with their use for fire suppression
purposes, such reimbursement to be credited to appropriations currently available at the time of receipt thereof: Provided further,
That for emergency rehabilitation and wildfire suppression activities, no funds shall be made available under this authority until
funds appropriated to ‘‘Wildland Fire Management’’ shall have been
exhausted: Provided further, That all funds used pursuant to this
section are hereby designated by Congress to be ‘‘emergency requirements’’ pursuant to section 251(b)(2)(D) of the Balanced Budget
and Emergency Deficit Control Act of 1985, and must be replenished
by a supplemental appropriation which must be requested as
promptly as possible: Provided further, That such replenishment
funds shall be used to reimburse, on a pro rata basis, accounts
from which emergency funds were transferred.
SEC. 103. Appropriations made in this title shall be available
for operation of warehouses, garages, shops, and similar facilities,
wherever consolidation of activities will contribute to efficiency or
economy, and said appropriations shall be reimbursed for services
rendered to any other activity in the same manner as authorized
by sections 1535 and 1536 of title 31, United States Code: Provided,
That reimbursements for costs and supplies, materials, equipment,
and for services rendered may be credited to the appropriation
current at the time such reimbursements are received.
SEC. 104. Appropriations made to the Department of the
Interior in this title shall be available for services as authorized
by 5 U.S.C. 3109, when authorized by the Secretary, in total amount
not to exceed $500,000; hire, maintenance, and operation of aircraft;
hire of passenger motor vehicles; purchase of reprints; payment
for telephone service in private residences in the field, when authorized under regulations approved by the Secretary; and the payment
of dues, when authorized by the Secretary, for library membership
in societies or associations which issue publications to members
only or at a price to members lower than to subscribers who
are not members.
SEC. 105. Appropriations available to the Department of the
Interior for salaries and expenses shall be available for uniforms
or allowances therefor, as authorized by law (5 U.S.C. 5901–5902
and D.C. Code 4–204).
SEC. 106. Appropriations made in this title shall be available
for obligation in connection with contracts issued for services or

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–200

rentals for periods not in excess of twelve months beginning at
any time during the fiscal year.
SEC. 107. Prior to the transfer of Presidio properties to the
Presidio Trust, when authorized, the Secretary may not obligate
in any calendar month more than 1⁄12 of the fiscal year 1997
appropriation for operation of the Presidio: Provided, That prior
to the transfer of any Presidio property to the Presidio Trust,
the Secretary shall transfer such funds as the Trust deems necessary to initiate leasing and other authorized activities of the
Trust: Provided further, That this section shall expire on December
31, 1996.
SEC. 108. No final rule or regulation of any agency of the
Federal Government pertaining to the recognition, management,
or validity of a right-of-way pursuant to Revised Statute 2477
(43 U.S.C. 932) shall take effect unless expressly authorized by
an Act of Congress subsequent to the date of enactment of this
Act.
SEC. 109. No funds provided in this title may be expended
by the Department of the Interior for the conduct of offshore leasing
and related activities placed under restriction in the President’s
moratorium statement of June 26, 1990, in the areas of Northern,
Central, and Southern California; the North Atlantic; Washington
and Oregon; and the Eastern Gulf of Mexico south of 26 degrees
north latitude and east of 86 degrees west longitude.
SEC. 110. No funds provided in this title may be expended
by the Department of the Interior for the conduct of leasing, or
the approval or permitting of any drilling or other exploration
activity, on lands within the North Aleutian Basin planning area.
SEC. 111. No funds provided in this title may be expended
by the Department of the Interior for the conduct of preleasing
and leasing activities in the Eastern Gulf of Mexico for Outer
Continental Shelf Lease Sale 151 in the Outer Continental Shelf
Natural Gas and Oil Resource Management Comprehensive Program, 1992–1997.
SEC. 112. No funds provided in this title may be expended
by the Department of the Interior for the conduct of preleasing
and leasing activities in the Atlantic for Outer Continental Shelf
Lease Sale 164 in the Outer Continental Shelf Natural Gas and
Oil Resource Management Comprehensive Program, 1992–1997.
SEC. 113. There is hereby established in the Treasury a franchise fund pilot, as authorized by section 403 of Public Law 103–
356, to be available as provided in such section for costs of capitalizing and operating administrative services as the Secretary determines may be performed more advantageously as central services:
Provided, That any inventories, equipment, and other assets
pertaining to the services to be provided by such fund, either
on hand or on order, less the related liabilities or unpaid obligations,
and any appropriations made prior to the current year for the
purpose of providing capital shall be used to capitalize such fund:
Provided further, That such fund shall be paid in advance from
funds available to the Department and other Federal agencies for
which such centralized services are performed, at rates which will
return in full all expenses of operation, including accrued leave,
depreciation of fund plant and equipment, amortization of automatic
data processing (ADP) software and systems (either acquired or
donated) and an amount necessary to maintain a reasonable operating reserve, as determined by the Secretary: Provided further, That

31 USC 501 note.

110 STAT. 3009–201

PUBLIC LAW 104–208—SEPT. 30, 1996

such fund shall provide services on a competitive basis: Provided
further, That an amount not to exceed four percent of the total
annual income to such fund may be retained in the fund for fiscal
year 1997 and each fiscal year thereafter, to remain available
until expended, to be used for the acquisition of capital equipment,
and for the improvement and implementation of Department financial management, ADP, and other support systems: Provided further, That no later than thirty days after the end of each fiscal
year amounts in excess of this reserve limitation shall be transferred
to the Treasury: Provided further, That such franchise fund pilot
shall terminate pursuant to section 403(f) of Public Law 103–356.
SEC. 114. Public Law 102–495 is amended by adding the following new section:
‘‘SEC. 10. WASHINGTON STATE REMOVAL OPTION.

‘‘(a) Upon appropriation of $29,500,000 for the Federal government to acquire the projects in the State of Washington pursuant
to this Act, the State of Washington may, upon the submission
to Congress of a binding agreement to remove the projects within
a reasonable period of time, purchase the projects from the Federal
government for $2. Such a binding agreement shall provide for
the full restoration of the Elwha River ecosystem and native anadromous fisheries, for protection of the existing quality and availability of water from the Elwha River for municipal and industrial
uses from possible adverse impacts of dam removal, and for fulfillment by the State of each of the other obligations of the Secretary
under this Act.
‘‘(b) Upon receipt of the payment pursuant to subsection (a),
the Federal government shall relinquish ownership and title of
the projects to the State of Washington.
‘‘(c) Upon the purchase of the projects by the State of Washington, section 3(a), (c), and (d), and Sections 4, 7, and 9 of this
Act are hereby repealed, and the remaining sections renumbered
accordingly.’’.
SEC. 115. Section 7 of Public Law 99–647 (16 U.S.C. 461 note)
is amended to read as follows:
‘‘SEC. 7. TERMINATION OF COMMISSION.

‘‘The Commission shall terminate on November 10, 1997.’’.
SEC. 116. The Congress of the United States hereby designates
and ratifies the assignment to the University of Utah as successor
to, and beneficiary of, all the existing assets, revenues, funds and
rights granted to the State of Utah under the Miners Hospital
Grant (February 20, 1929, 45 Stat. 1252) and the School of Mines
Grant (July 26, 1894, 28 Stat. 110). Further, the Secretary of
the Interior is authorized and directed to accept such relinquishment of all remaining and unconveyed entitlement for quantity
grants owed the State of Utah for the Miners Hospital Grant
(February 20, 1929, 45 Stat. 1252) and any unconveyed entitlement
that may remain for the University of Utah School of Mines Grant
(July 26, 1894, 28 Stat. 110).
SEC. 117. Section 402(b)(1) of The Indian Self-Determination
and Education Assistance Act (25 U.S.C. 458bb) is amended to
read as follows: ‘‘(1) In addition to those Indian tribes participating
in self-governance under subsection (a) of this section, the Secretary,
acting through the Director of the Office of Self-Governance, may
select up to 50 new tribes per year from the applicant pool described
in subsection (c) of this section to participate in self-governance.’’.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–202

SEC. 118. In fiscal year 1997 and thereafter, the Indian Arts
and Crafts Board may charge admission fees at its museums; charge
rent and/or franchise fees for shops located in its museums; publish
and sell publications; sell or rent or license use of photographs
or other images in hard copy or other forms; license the use of
designs, in whole or in part, by others; charge for consulting services
provided to others; and may accept the services of volunteers to
carry out its mission: Provided, That all revenue derived from
such activities is covered into the special fund established by section
4 of Public Law 74–355 (25 U.S.C. 305c).
SEC. 119. TRANSFER OF CERTAIN BUREAU OF LAND MANAGEMENT FACILITIES.—
(a) BATTLE MOUNTAIN, NEVADA.—Not later than 30 days
after the date of enactment of this Act, the Secretary of the
Interior, acting through the Director of the Bureau of Land
Management, shall transfer to Lander County, Nevada, without
consideration, title to the former Bureau of Land Management
administrative site and associated buildings in Battle Mountain, Nevada.
(b) WINNEMUCCA, NEVADA.—
(1) TRANSFER.—Not later than 30 days after the date
of enactment of this Act, the Secretary of the Interior,
acting through the Director of the Bureau of Land Management, shall transfer to the State of Nevada, without consideration, title to the surplus Bureau of Land Management
District Office building in Winnemucca, Nevada.
(2) USE.—The transfer under paragraph (1) is made
with the intent that the building shall be available to
meet the needs of the Department of Conservation and
Natural Resources of the State of Nevada.
SEC. 120. ALASKA AVIATION HERITAGE.—
(a) FINDINGS.—The Congress finds that—
(1) the Department of the Interior’s Grumman Goose
G21–A aircraft number N789 is to be retired from several
decades of active service in the State of Alaska in 1996;
and
(2) the aircraft is of significant historic value to the
people of the State of Alaska.
(b) DONATION OF AIRCRAFT.—The Secretary of the Interior
shall transfer the Grumman Goose G21–A aircraft number
N789 to the Alaska Aviation Heritage Museum in Anchorage,
Alaska, at no cost to the museum, for permanent display.
SEC. 121. The Mesquite Lands Act of 1988 is amended by
adding the following at the end of section 3:
‘‘(d) FOURTH AREA.—(1) No later than ten years after the date
of enactment of this Act, the City of Mesquite shall notify the
Secretary as to which if any of the public lands identified in paragraph (2) of this subsection the city wishes to purchase.
‘‘(2) For a period of twelve years after the date of enactment
of this Act, the city shall have exclusive right to purchase the
following parcels of public lands:
‘‘Parcel A—East 1⁄2 Sec. 6, T. 13 S., R. 71 E., Mount
Diablo Meridian; Sec. 5, T. 13 S., R. 71 E., Mount Diablo
Meridian; West 1⁄2 Sec. 4, T. 13 S., R. 71 E, Mount Diablo
Meridian; East 1⁄2, West 1⁄2 Sec. 4, T. 13 S., R. 71 E., Mount
Diablo Meridian.

25 USC 305a–1.

110 STAT. 3009–203

Father Aull Site
Transfer Act of
1996.

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘Parcel B—North 1⁄2 Sec. 7, T. 13 S., R. 71 E., Mount
Diablo Meridian; South East 1⁄4 Sec. 12, T. 13 S., R. 70 E.,
Mount Diablo Meridian; East 1⁄2, North East 1⁄4 Sec. 12, T.
13 S., R. 70 E., Mount Diablo Meridian; East 1⁄2, West 1⁄2
North East 1⁄4 Sec. 12, T. 13 S., R. 70 E., Mount Diablo Meridian.
‘‘Parcel C—West 1⁄2 Sec. 6, T. 13 S., R. 71 E., Mount
Diablo Meridian; Sec. 1, T. 13 S., R. 70 E., Mount Diablo
Meridian; West 1⁄2, West 1⁄2, North East 1⁄4 Sec. 12, T. 13
S., R. 70 E., Mount Diablo Meridian; North West 1⁄4 Sec. 13,
S., R. 70 E., Mount Diablo Meridian; West 1⁄2 Sec. 12, T.
13 S., R. 70 E., Mount Diablo Meridian; East 1⁄2, South East
1⁄4, Sec. 11, T. 13 S., R. 70 E., Mount Diablo Meridian; East
1⁄2 North East 1⁄4, Sec. 14, T. 13 S., R. 70 E., Mount Diablo
Meridian.
‘‘Parcel D—South 1⁄2 Sec. 14, T. 13 S., R. 70 E., Mount
Diablo Meridian; South West 1⁄4, Sec. 13, T. 13 S., R. 70 E.,
Mount Diablo Meridian; Portion of section 23, North of Interstate 15, T. 13 S., R. 70 E., Mount Diablo Meridian; Portion
of section 24, North of Interstate 15, T. 13 S., R. 70 E., Mount
Diablo Meridian; Portion of section 26, North of Interstate
15, T. 13 S., R. 70 E., Mount Diablo Meridian.’’
SEC. 122. Father Aull Site Transfer.
(a) This section may be cited as the ‘‘Father Aull Site Transfer
Act of 1996’’.
(b) FINDINGS.—Congress finds that—
(1) the buildings and grounds developed by Father Roger
Aull located on public domain land near Silver City, New Mexico, are historically significant to the citizens of the community;
(2) vandalism at the site has become increasingly destructive and frequent in recent years;
(3) because of the isolated location and the distance from
other significant resources and agency facilities, the Bureau
of Land Management has been unable to devote sufficient
resources to restore and protect the site from further damage;
and
(4) St. Vincent DePaul Parish in Silver City, New Mexico,
has indicated an interest in, and developed a sound proposal
for the restoration of, the site, such that the site could be
permanently occupied and used by the community.
(c) CONVEYANCE OF PROPERTY.—Subject to valid existing rights,
all right, title and interest of the United States in and to the
land (including improvements on the land), consisting of approximately 43.06 acres, located approximately 10 miles east of Silver
City, New Mexico, and described as follows: T. 17 S., R. 12 W.,
Section 30: Lot 13, and Section 31: Lot 27 (as generally depicted
on the map dated July 1995) is hereby conveyed by operation
of law to St. Vincent DePaul Parish in Silver City, New Mexico,
without consideration.
(d) RELEASE.—Upon the conveyance of any land or interest
in land identified in this section of St. Vincent DePaul Parish,
St. Vincent DePaul Parish shall assume any liability for any claim
relating to the land or interest in the land arising after the date
of the conveyance.
(e) MAP.—The map referred to in this section shall be on
file and available for public inspection in—

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–204

(1) the State of New Mexico Office of the Bureau of Land
Management, Santa Fe, New Mexico; and
(2) the Las Cruces District Office of the Bureau of Land
Management, Las Cruces, New Mexico.
SEC. 123. The second proviso under the heading ‘‘Bureau of
Mines, Administrative Provisions’’ of Public Law 104–134 is amended by inserting after the word ‘‘authorized’’ the word ‘‘hereafter’’.
SEC. 124. Watershed Restoration and Enhancement Agreements.
(a) IN GENERAL.—For fiscal year 1997 and each fiscal year
thereafter, appropriations made for the Bureau of Land Management may be used by the Secretary of the Interior for the purpose
of entering into cooperative agreements with willing private landowners for restoration and enhancement of fish, wildlife, and other
biotic resources on public or private land or both that benefit
these resources on public lands within the watershed.
(b) DIRECT AND INDIRECT WATERSHED AGREEMENTS.—The Secretary of the Interior may enter into a watershed restoration and
enhancement agreement—
(1) directly with a willing private landowner; or
(2) indirectly through an agreement with a state, local,
or tribal government or other public entity, educational institution, or private nonprofit organization.
(c) TERMS AND CONDITIONS.—In order for the Secretary to enter
into a watershed restoration and enhancement agreement—
(1) the agreement shall—
(A) include such terms and conditions mutually agreed
to by the Secretary and the landowner;
(B) improve the viability of and otherwise benefit the
fish, wildlife, and other biotic resources on public land
in the watershed;
(C) authorize the provision of technical assistance by
the Secretary in the planning of management activities
that will further the purposes of the agreement;
(D) provide for the sharing of costs of implementing
the agreement among the Federal government, the landowner, and other entities, as mutually agreed on by the
affected interests; and
(E) ensure that any expenditure by the Secretary
pursuant to the agreement is determined by the Secretary
to be in the public interest; and
(2) the Secretary may require such other terms and conditions as are necessary to protect the public investment on
private lands, provided such terms and conditions are mutually
agreed to by the Secretary and the landowner.
SEC. 125. Visitor Center Designation at Channel Islands
National Park.
(a) The visitor center at Channel Islands National Park, California, is hereby designated as the ‘‘Robert J. Lagomarsino Visitor
Center’’.
(b) Any reference in law, regulation, paper, record, map, or
any other document in the United States to the visitor center
referred to in subsection (a) shall be deemed to be a reference
to the ‘‘Robert J. Lagomarsino Visitor Center’’.

16 USC 1011.

16 USC 410ff
note.

110 STAT. 3009–205

PUBLIC LAW 104–208—SEPT. 30, 1996
TITLE II—RELATED AGENCIES
DEPARTMENT

OF

AGRICULTURE

FOREST SERVICE
FOREST AND RANGELAND RESEARCH

For necessary expenses of forest and rangeland research as
authorized by law, $179,786,000, to remain available until
expended.
STATE AND PRIVATE FORESTRY

For necessary expenses of cooperating with, and providing technical and financial assistance to States, Territories, possessions,
and others and for forest pest management activities, cooperative
forestry and education and land conservation activities,
$155,461,000 to remain available until expended, as authorized
by law: Provided, That of funds available under this heading for
Pacific Northwest Assistance in this or prior appropriations Acts.
$750,000 shall be provided to the World Forestry Center for purposes of continuing scientific research and other authorized efforts
regarding the land exchange efforts in the Umpqua River Basin
region.
NATIONAL FOREST SYSTEM

For necessary expenses of the Forest Service, not otherwise
provided for, for management, protection, improvement, and utilization of the National Forest System, for ecosystem planning, inventory, and monitoring, and for administrative expenses associated
with the management of funds provided under the heads ‘‘Forest
and Rangeland Research,’’ ‘‘State and Private Forestry,’’ ‘‘National
Forest System,’’ ‘‘Wildland Fire Management,’’ ‘‘Reconstruction and
Construction,’’ and ‘‘Land Acquisition,’’ $1,274,781,000 to remain
available until expended, and including 50 per centum of all monies
received during the prior fiscal year as fees collected under the
Land and Water Conservation Fund Act of 1965, as amended,
in accordance with section 4 of the Act (16 U.S.C. 460l–6a(i)):
Provided, That up to $5,000,000 of the funds provided herein for
road maintenance shall be available for the planned obliteration
of roads which are no longer needed.
WILDLAND FIRE MANAGEMENT

For necessary expenses for forest fire presuppression activities
on National Forest System lands, for emergency fire suppression
on or adjacent to such lands or other lands under fire protection
agreement, and for emergency rehabilitation of burned over
National Forest System lands, $530,016,000, to remain available
until expended: Provided, That unexpended balances of amounts
previously appropriated under any other headings for Forest Service
fire activities are transferred to and merged with this appropriation
and subject to the same terms and conditions: Provided further,
That such funds are available for repayment of advances from
other appropriations accounts previously transferred for such purposes.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–206

RECONSTRUCTION AND CONSTRUCTION

For necessary expenses of the Forest Service, not otherwise
provided for, $174,974,000, to remain available until expended for
construction, reconstruction and acquisition of buildings and other
facilities, and for construction, reconstruction and repair of forest
roads and trails by the Forest Service as authorized by 16 U.S.C.
532–538 and 23 U.S.C. 101 and 205: Provided, That not to exceed
$50,000,000, to remain available until expended, may be obligated
for the construction of forest roads by timber purchasers: Provided
further, That funds appropriated under this head for the construction of the Wayne National Forest Supervisor’s Office may be
granted to the Ohio State Highway Patrol as the federal share
of the cost of construction of a new facility to be occupied jointly
by the Forest Service and the Ohio State Highway Patrol: Provided
further, That an agreed upon lease of space in the new facility
shall be provided to the Forest Service without charge for the
life of the building.
LAND ACQUISITION

For expenses necessary to carry out the provisions of the Land
and Water Conservation Fund Act of 1965, as amended (16 U.S.C.
460l–4–11), including administrative expenses, and for acquisition
of land or waters, or interest therein, in accordance with statutory
authority applicable to the Forest Service, $40,575,000, to be derived
from the Land and Water Conservation Fund, to remain available
until expended.
ACQUISITION OF LANDS FOR NATIONAL FORESTS SPECIAL ACTS

For acquisition of lands within the exterior boundaries of the
Cache, Uinta, and Wasatch National Forests, Utah; the Toiyabe
National Forest, Nevada; and the Angeles, San Bernardino, Sequoia,
and Cleveland National Forests, California, as authorized by law,
$1,069,000, to be derived from forest receipts.
ACQUISITION OF LANDS TO COMPLETE LAND EXCHANGES

For acquisition of lands, such sums, to be derived from funds
deposited by State, county, or municipal governments, public school
districts, or other public school authorities pursuant to the Act
of December 4, 1967, as amended (16 U.S.C. 484a), to remain
available until expended.
RANGE BETTERMENT FUND

For necessary expenses of range rehabilitation, protection, and
improvement, 50 per centum of all moneys received during the
prior fiscal year, as fees for grazing domestic livestock on lands
in National Forests in the sixteen Western States, pursuant to
section 401(b)(1) of Public Law 94–579, as amended, to remain
available until expended, of which not to exceed 6 per centum
shall be available for administrative expenses associated with onthe-ground range rehabilitation, protection, and improvements.

110 STAT. 3009–207

PUBLIC LAW 104–208—SEPT. 30, 1996

GIFTS, DONATIONS AND BEQUESTS FOR FOREST AND RANGELAND
RESEARCH

For expenses authorized by 16 U.S.C. 1643(b), $92,000, to
remain available until expended, to be derived from the fund established pursuant to the above Act.
ADMINISTRATIVE PROVISIONS, FOREST SERVICE

Appropriations to the Forest Service for the current fiscal year
shall be available for: (a) purchase of not to exceed 159 passenger
motor vehicles of which 14 will be used primarily for law enforcement purposes and of which 149 shall be for replacement; acquisition of 10 passenger motor vehicles from excess sources, and hire
of such vehicles; operation and maintenance of aircraft, the purchase
of not to exceed two for replacement only, and acquisition of 20
aircraft from excess sources; notwithstanding other provisions of
law, existing aircraft being replaced may be sold, with proceeds
derived or trade-in value used to offset the purchase price for
the replacement aircraft; (b) services pursuant to 7 U.S.C. 2225,
and not to exceed $100,000 for employment under 5 U.S.C. 3109;
(c) purchase, erection, and alteration of buildings and other public
improvements (7 U.S.C. 2250); (d) acquisition of land, waters, and
interests therein, pursuant to 7 U.S.C. 428a; (e) for expenses pursuant to the Volunteers in the National Forest Act of 1972 (16 U.S.C
558a, 558d, 558a note); and (f) for debt collection contracts in
accordance with 31 U.S.C. 3718(c).
None of the funds made available under this Act shall be
obligated or expended to change the boundaries of any region,
to abolish any region, to move or close any regional office for
research, State and private forestry, or National Forest System
administration of the Forest Service, Department of Agriculture,
or to implement any reorganization, ‘‘reinvention’’ or other type
of organizational restructuring of the Forest Service, other than
the relocation of the Regional Office for Region 5 of the Forest
Service from San Francisco to excess military property at Mare
Island, Vallejo, California, without the consent of the House and
Senate Committees on Appropriations.
Any funds available to the Forest Service may be used for
retrofitting Mare Island facilities to accommodate the relocation:
Provided, That funds for the move must come from funds otherwise
available to Region 5: Provided further, That any funds to be
provided for such purposes shall only be available upon approval
of the House and Senate Committees on Appropriations.
Any appropriations or funds available to the Forest Service
may be advanced to the Wildland Fire Management appropriation
and may be used for forest firefighting and the emergency
rehabilitation of burned-over lands under its jurisdiction.
Funds appropriated to the Forest Service shall be available
for assistance to or through the Agency for International Development and the Foreign Agricultural Service in connection with forest
and rangeland research, technical information, and assistance in
foreign countries, and shall be available to support forestry and
related natural resource activities outside the United States and
its territories and possessions, including technical assistance, education and training, and cooperation with United States and international organizations.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–208

None of the funds made available to the Forest Service under
this Act shall be subject to transfer under the provisions of section
702(b) of the Department of Agriculture Organic Act of 1944 (7
U.S.C. 2257) or 7 U.S.C. 147b unless the proposed transfer is
approved in advance by the House and Senate Committees on
Appropriations in compliance with the reprogramming procedures
contained in House Report 103–551.
None of the funds available to the Forest Service may be
reprogrammed without the advance approval of the House and
Senate Committees on Appropriations in accordance with the procedures contained in House Report 103–551.
No funds appropriated to the Forest Service shall be transferred
to the Working Capital Fund of the Department of Agriculture
without the approval of the Chief of the Forest Service.
Notwithstanding any other provision of the law, any appropriations or funds available to the Forest Service may be used to
disseminate program information to private and public individuals
and organizations through the use of nonmonetary items of nominal
value and to provide nonmonetary awards of nominal value and
to incur necessary expenses for the nonmonetary recognition of
private individuals and organizations that make contributions to
Forest Service programs.
Notwithstanding any other provision of law, money collected,
in advance or otherwise, by the Forest Service under authority
of section 101 of Public Law 93–153 (30 U.S.C. 185(1)) as reimbursement of administrative and other costs incurred in processing pipeline right-of-way or permit applications and for costs incurred in
monitoring the construction, operation, maintenance, and termination of any pipeline and related facilities, may be used to
reimburse the applicable appropriation to which such costs were
originally charged.
Funds available to the Forest Service shall be available to
conduct a program of not less than $1,000,000 for high priority
projects within the scope of the approved budget which shall be
carried out by the Youth Conservation Corps as authorized by
the Act of August 13, 1970, as amended by Public Law 93–408.
None of the funds available in this Act shall be used for
timber sale preparation using clearcutting in hardwood stands in
excess of 25 percent of the fiscal year 1989 harvested volume
in the Wayne National Forest, Ohio: Provided, That this limitation
shall not apply to hardwood stands damaged by natural disaster:
Provided further, That landscape architects shall be used to maintain a visually pleasing forest.
Any money collected from the States for fire suppression assistance rendered by the Forest Service on non-Federal lands not
in the vicinity of National Forest System lands shall be used to
reimburse the applicable appropriation and shall remain available
until expended as the Secretary may direct in conducting activities
authorized by 16 U.S.C. 2101 (note), 2101–2110, 1606, and 2111.
Of the funds available to the Forest Service, $1,500 is available
to the Chief of the Forest Service for official reception and representation expenses.
Notwithstanding any other provision of law, the Forest Service
is authorized to employ or otherwise contract with persons at regular rates of pay, as determined by the Service, to perform work
occasioned by emergencies such as fires, storms, floods, earthquakes

110 STAT. 3009–209

PUBLIC LAW 104–208—SEPT. 30, 1996

or any other unavoidable cause without regard to Sundays, Federal
holidays, and the regular workweek.
To the greatest extent possible, and in accordance with the
Final Amendment to the Shawnee National Forest Plan, none of
the funds available in this Act shall be used for preparation of
timber sales using clearcutting or other forms of even aged management in hardwood stands in the Shawnee National Forest, Illinois.
Pursuant to sections 405(b) and 410(b) of Public Law 101–
593, funds up to $1,000,000 for matching funds shall be available
for the National Forest Foundation on a one-for-one basis to match
private contributions for projects on or benefitting National Forest
System lands or related to Forest Service programs.
Pursuant to section 2(b)(2) of Public Law 98–244, up to
$1,000,000 of the funds available to the Forest Service shall be
available for matching funds, as authorized in 16 U.S.C. 3701–
3709, on a one-for-one basis to match private contributions for
projects on or benefitting National Forest System lands or related
to Forest Service programs.
Funds appropriated to the Forest Service shall be available
for interactions with and providing technical assistance to rural
communities for sustainable rural development purposes.
Notwithstanding any other provision of law, 80 percent of the
funds appropriated to the Forest Service in the National Forest
System and Construction accounts and planned to be allocated
to activities under the ‘‘Jobs in the Woods’’ program for projects
on National Forest land in the State of Washington may be granted
directly to the Washington State Department of Fish and Wildlife
for accomplishment of planned projects. Twenty percent of said
funds shall be retained by the Forest Service for planning and
administering projects. Project selection and prioritization shall be
accomplished by the Forest Service with such consultation with
the State of Washington as the Forest Service deems appropriate.
Funds appropriated to the Forest Service shall be available
for payments to counties within the Columbia River Gorge National
Scenic Area, pursuant to sections 14(c)(1) and (2), and section
16(a)(2) of Public Law 99–663.
The Secretary of Agriculture shall by March 31, 1997 report
to the Committees on Appropriations of the House of Representatives and the Senate on the status and disposition of all salvage
timber sales started under the authority of Section 2001 of Public
Law 104–19 and subsequently withdrawn or delayed and completed
under different authorities as a consequence of the July 2, 1996
directive on the implementation of Section 2001 issued by the
Secretary.
The Pacific Northwest Research Station Silviculture Laboratory
in Bend, Oregon is hereby named the ‘‘Robert W. Chandler Building’’.
For purposes of the Southeast Alaska Economic Disaster Fund
as set forth in section 101(c) of Public Law 104–134, the direct
grants provided in subsection (c) shall be considered direct payments
for purposes of all applicable law except that these direct grants
may not be used for lobbying activities.
No employee of the Department of Agriculture may be detailed
or assigned from an agency or office funded by this Act to any
other agency or office of the Department for more than 30 days
unless the individual’s employing agency or office is fully

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–210

reimbursed by the receiving agency or office for the salary and
expenses of the employee for the period of assignment.
DEPARTMENT OF ENERGY
CLEAN COAL TECHNOLOGY
(RESCISSION)

Of the funds made available under this heading for obligation
in fiscal year 1997 or prior years, $123,000,000 are rescinded:
Provided, That funds made available in previous appropriations
Acts shall be available for any ongoing project regardless of the
separate request for proposal under which the project was selected.
FOSSIL ENERGY RESEARCH AND DEVELOPMENT

For necessary expenses in carrying out fossil energy research
and development activities, under the authority of the Department
of Energy Organization Act (Public Law 95–91), including the
acquisition of interest, including defeasible and equitable interests
in any real property or any facility or for plant or facility acquisition
or expansion, and for conducting inquiries, technological investigations and research concerning the extraction, processing, use, and
disposal of mineral substances without objectionable social and
environmental costs (30 U.S.C. 3, 1602, and 1603), performed under
the minerals and materials science programs at the Albany
Research Center in Oregon, $364,704,000, to remain available until
expended: Provided, That no part of the sum herein made available
shall be used for the field testing of nuclear explosives in the
recovery of oil and gas.
ALTERNATIVE FUELS PRODUCTION
(INCLUDING TRANSFER AND RESCISSION OF FUNDS)

Monies received as investment income on the principal amount
in the Great Plains Project Trust at the Norwest Bank of North
Dakota, in such sums as are earned as of October 1, 1996, shall
be deposited in this account and immediately transferred to the
General Fund of the Treasury. Monies received as revenue sharing
from the operation of the Great Plains Gasification Plant shall
be immediately transferred to the General Fund of the Treasury.
Funds are hereby rescinded in the amount of $2,500,000 from
unobligated balances under this head.
NAVAL PETROLEUM AND OIL SHALE RESERVES

For necessary expenses in carrying out naval petroleum and
oil shale reserve activities, $143,786,000, to remain available until
expended: Provided, That the requirements of 10 U.S.C.
7430(b)(2)(B) shall not apply to fiscal year 1997.
ENERGY CONSERVATION

For necessary expenses in carrying out energy conservation
activities, $569,762,000, to remain available until expended, including, notwithstanding any other provision of law, the excess amount
for fiscal year 1997 determined under the provisions of section

10 USC 7430
note.

110 STAT. 3009–211

PUBLIC LAW 104–208—SEPT. 30, 1996

3003(d) of Public Law 99–509 (15 U.S.C. 4502): Provided, That
$149,845,000 shall be for use in energy conservation programs
as defined in section 3008(3) of Public Law 99–509 (15 U.S.C.
4507) and shall not be available until excess amounts are determined under the provisions of section 3003(d) of Public Law 99–
509 (15 U.S.C. 4502): Provided further, That notwithstanding section 3003(d)(2) of Public Law 99–509 such sums shall be allocated
to the eligible programs as follows:$120,845,000 for weatherization
assistance grants and $29,000,000 for State energy conservation
grants.
ECONOMIC REGULATION

For necessary expenses in carrying out the activities of the
Office of Hearing and Appeals, $2,725,000, to remain available
until expended.
STRATEGIC PETROLEUM RESERVE
(INCLUDING TRANSFER OF FUNDS)

For necessary expenses for Strategic Petroleum Reserve facility
development and operations and program management activities
pursuant to the Energy Policy and Conservation Act of 1975, as
amended (42 U.S.C. 6201 et seq.), $220,000,000, to remain available
until expended, of which $220,000,000 shall be repaid from the
‘‘SPR Operating Fund’’ from amounts made available from the
sale of oil from the Reserve: Provided, That notwithstanding section
161 of the Energy Policy and Conservation Act, the Secretary shall
draw down and sell in fiscal year 1997 $220,000,000 worth of
oil from the Strategic Petroleum Reserve: Provided further, That
the proceeds from the sale shall be deposited into a special account
in the Treasury, to be established and known as the ‘‘SPR Operating
Fund’’, and shall, upon receipt, be transferred to the Strategic
Petroleum Reserve account for operations of the Strategic Petroleum
Reserve.
SPR PETROLEUM ACCOUNT

Notwithstanding 42 U.S.C. 6240(d) the United States share
of crude oil in Naval Petroleum Reserve Numbered 1 (Elk Hills)
may be sold or otherwise disposed of to other than the Strategic
Petroleum Reserve: Provided, That outlays in fiscal year 1997
resulting from the use of funds in this account shall not exceed
$5,000,000.
ENERGY INFORMATION ADMINISTRATION

For necessary expenses in carrying out the activities of the
Energy Information Administration, $66,120,000 to remain available until expended.
ADMINISTRATIVE PROVISIONS, DEPARTMENT OF ENERGY

Appropriations under this Act for the current fiscal year shall
be available for hire of passenger motor vehicles; hire, maintenance,
and operation of aircraft; purchase, repair, and cleaning of uniforms;

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–212

and reimbursement to the General Services Administration for security guard services.
From appropriations under this Act, transfers of sums may
be made to other agencies of the Government for the performance
of work for which the appropriation is made.
None of the funds made available to the Department of Energy
under this Act shall be used to implement or finance authorized
price support or loan guarantee programs unless specific provision
is made for such programs in an appropriations Act.
The Secretary is authorized to accept lands, buildings, equipment, and other contributions from public and private sources and
to prosecute projects in cooperation with other agencies, Federal,
State, private or foreign: Provided, That revenues and other moneys
received by or for the account of the Department of Energy or
otherwise generated by sale of products in connection with projects
of the Department appropriated under this Act may be retained
by the Secretary of Energy, to be available until expended, and
used only for plant construction, operation, costs, and payments
to cost-sharing entities as provided in appropriate cost-sharing contracts or agreements: Provided further, That the remainder of revenues after the making of such payments shall be covered into
the Treasury as miscellaneous receipts: Provided further, That any
contract, agreement, or provision thereof entered into by the Secretary pursuant to this authority shall not be executed prior to
the expiration of 30 calendar days (not including any day in which
either House of Congress is not in session because of adjournment
of more than three calendar days to a day certain) from the receipt
by the Speaker of the House of Representatives and the President
of the Senate of a full comprehensive report on such project, including the facts and circumstances relied upon in support of the
proposed project.
No funds provided in this Act may be expended by the Department of Energy to prepare, issue, or process procurement documents
for programs or projects for which appropriations have not been
made.
In addition to other authorities set forth in this Act, the Secretary may accept fees and contributions from public and private
sources, to be deposited in a contributed funds account, and prosecute projects using such fees and contributions in cooperation
with other Federal, State or private agencies or concerns.
DEPARTMENT OF HEALTH AND HUMAN SERVICES
INDIAN HEALTH SERVICE
INDIAN HEALTH SERVICES

For expenses necessary to carry out the Act of August 5, 1954
(68 Stat. 674), the Indian Self-Determination Act, the Indian Health
Care Improvement Act, and titles II and III of the Public Health
Service Act with respect to the Indian Health Service,
$1,806,269,000, together with payments received during the fiscal
year pursuant to 42 U.S.C. 238(b) for services furnished by the
Indian Health Service: Provided, That funds made available to
tribes and tribal organizations through contracts, grant agreements,
or any other agreements or compacts authorized by the Indian
Self-Determination and Education Assistance Act of 1975 (25 U.S.C.

110 STAT. 3009–213

PUBLIC LAW 104–208—SEPT. 30, 1996

450), shall be deemed to be obligated at the time of the grant
or contract award and thereafter shall remain available to the
tribe or tribal organization without fiscal year limitation: Provided
further, That $12,000,000 shall remain available until expended,
for the Indian Catastrophic Health Emergency Fund: Provided further, That $356,325,000 for contract medical care shall remain
available for obligation until September 30, 1998: Provided further,
That of the funds provided, not less than $11,706,000 shall be
used to carry out the loan repayment program under section 108
of the Indian Health Care Improvement Act: Provided further,
That funds provided in this Act may be used for one-year contracts
and grants which are to be performed in two fiscal years, so long
as the total obligation is recorded in the year for which the funds
are appropriated: Provided further, That the amounts collected by
the Secretary of Health and Human Services under the authority
of title IV of the Indian Health Care Improvement Act shall remain
available until expended for the purpose of achieving compliance
with the applicable conditions and requirements of titles XVIII
and XIX of the Social Security Act (exclusive of planning, design,
or construction of new facilities): Provided further, That of the
funds provided, $7,500,000 shall remain available until expended,
for the Indian Self-Determination Fund, which shall be available
for the transitional costs of initial or expanded tribal contracts,
compacts, grants or cooperative agreements with the Indian Health
Service under the provisions of the Indian Self-Determination Act:
Provided further, That funding contained herein, and in any earlier
appropriations Acts for scholarship programs under the Indian
Health Care Improvement Act (25 U.S.C. 1613) shall remain available for obligation until September 30, 1998: Provided further,
That amounts received by tribes and tribal organizations under
title IV of the Indian Health Care Improvement Act shall be
reported and accounted for and available to the receiving tribes
and tribal organizations until expended.
INDIAN HEALTH FACILITIES

For construction, repair, maintenance, improvement, and equipment of health and related auxiliary facilities, including quarters
for personnel; preparation of plans, specifications, and drawings;
acquisition of sites, purchase and erection of modular buildings,
and purchases of trailers; and for provision of domestic and community sanitation facilities for Indians, as authorized by section 7
of the Act of August 5, 1954 (42 U.S.C. 2004a), the Indian SelfDetermination Act, and the Indian Health Care Improvement Act,
and for expenses necessary to carry out such Acts and titles II
and III of the Public Health Service Act with respect to environmental health and facilities support activities of the Indian Health
Service, $247,731,000, to remain available until expended: Provided,
That notwithstanding any other provision of law, funds appropriated for the planning, design, construction or renovation of health
facilities for the benefit of an Indian tribe or tribes may be used
to purchase land for sites to construct, improve, or enlarge health
or related facilities.
ADMINISTRATIVE PROVISIONS, INDIAN HEALTH SERVICE

Appropriations in this Act to the Indian Health Service shall
be available for services as authorized by 5 U.S.C. 3109 but at

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–214

rates not to exceed the per diem rate equivalent to the maximum
rate payable for senior-level positions under 5 U.S.C. 5376; hire
of passenger motor vehicles and aircraft; purchase of medical equipment; purchase of reprints; purchase, renovation and erection of
modular buildings and renovation of existing facilities; payments
for telephone service in private residences in the field, when authorized under regulations approved by the Secretary; and for uniforms
or allowances therefore as authorized by 5 U.S.C. 5901–5902; and
for expenses of attendance at meetings which are concerned with
the functions or activities for which the appropriation is made
or which will contribute to improved conduct, supervision, or
management of those functions or activities: Provided, That in
accordance with the provisions of the Indian Health Care Improvement Act, non-Indian patients may be extended health care at
all tribally administered or Indian Health Service facilities, subject
to charges, and the proceeds along with funds recovered under
the Federal Medical Care Recovery Act (42 U.S.C. 2651–53) shall
be credited to the account of the facility providing the service
and shall be available without fiscal year limitation: Provided further, That notwithstanding any other law or regulation, funds transferred from the Department of Housing and Urban Development
to the Indian Health Service shall be administered under Public
Law 86–121 (the Indian Sanitation Facilities Act) and Public Law
93–638, as amended: Provided further, That funds appropriated
to the Indian Health Service in this Act, except those used for
administrative and program direction purposes, shall not be subject
to limitations directed at curtailing Federal travel and transportation: Provided further, That notwithstanding any other provision
of law, funds previously or herein made available to a tribe or
tribal organization through a contract, grant, or agreement authorized by title I or title III of the Indian Self-Determination and
Education Assistance Act of 1975 (25 U.S.C. 450), may be
deobligated and reobligated to a self-determination contract under
title I, or a self-governance agreement under title III of such Act
and thereafter shall remain available to the tribe or tribal organization without fiscal year limitation: Provided further, That none
of the funds made available to the Indian Health Service in this
Act shall be used to implement the final rule published in the
Federal Register on September 16, 1987, by the Department of
Health and Human Services, relating to the eligibility for the health
care services of the Indian Health Service until the Indian Health
Service has submitted a budget request reflecting the increased
costs associated with the proposed final rule, and such request
has been included in an appropriations Act and enacted into law:
Provided further, That funds made available in this Act are to
be apportioned to the Indian Health Service as appropriated in
this Act, and accounted for in the appropriation structure set forth
in this Act: Provided further, That funds received from any source,
including tribal contractors and compactors for previously transferred functions which tribal contractors and compactors no longer
wish to retain, for services, goods, or training and technical assistance, shall be retained by the Indian Health Service and shall
remain available until expended by the Indian Health Service:
Provided further, That reimbursements for training, technical
assistance, or services provided by the Indian Health Service will
contain total costs, including direct, administrative, and overhead

110 STAT. 3009–215

PUBLIC LAW 104–208—SEPT. 30, 1996

associated with the provision of goods, services, or technical assistance: Provided further, That the appropriation structure for the
Indian Health Service may not be altered without advance approval
of the House and Senate Committees on Appropriations.
DEPARTMENT OF EDUCATION
OFFICE

OF

ELEMENTARY

AND

SECONDARY EDUCATION

INDIAN EDUCATION

For necessary expenses to carry out, to the extent not otherwise
provided, title IX, part A of the Elementary and Secondary Education Act of 1965, as amended, and section 215 of the Department
of Education Organization Act, $61,000,000.
OTHER RELATED AGENCIES
OFFICE

OF

NAVAJO

AND

HOPI INDIAN RELOCATION

SALARIES AND EXPENSES

For necessary expenses of the Office of Navajo and Hopi Indian
Relocation as authorized by Public Law 93–531, $19,345,000, to
remain available until expended: Provided, That funds provided
in this or any other appropriations Act are to be used to relocate
eligible individuals and groups including evictees from District 6,
Hopi-partitioned lands residents, those in significantly substandard
housing, and all others certified as eligible and not included in
the preceding categories: Provided further, That none of the funds
contained in this or any other Act may be used by the Office
of Navajo and Hopi Indian Relocation to evict any single Navajo
or Navajo family who, as of November 30, 1985, was physically
domiciled on the lands partitioned to the Hopi Tribe unless a
new or replacement home is provided for such household: Provided
further, That no relocatee will be provided with more than one
new or replacement home: Provided further, That the Office shall
relocate any certified eligible relocatees who have selected and
received an approved homesite on the Navajo reservation or selected
a replacement residence off the Navajo reservation or on the land
acquired pursuant to 25 U.S.C. 640d–10.
INSTITUTE

OF

AMERICAN INDIAN AND ALASKA NATIVE CULTURE
ARTS DEVELOPMENT

AND

PAYMENT TO THE INSTITUTE

For payment to the Institute of American Indian and Alaska
Native Culture and Arts Development, as authorized by title XV
of Public Law 99–498, as amended (20 U.S.C. 56, part A),
$5,500,000.
SMITHSONIAN INSTITUTION
SALARIES AND EXPENSES

For necessary expenses of the Smithsonian Institution, as
authorized by law, including research in the fields of art, science,

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–216

and history; development, preservation, and documentation of the
National Collections; presentation of public exhibits and performances; collection, preparation, dissemination, and exchange of
information and publications; conduct of education, training, and
museum assistance programs; maintenance, alteration, operation,
lease (for terms not to exceed thirty years), and protection of buildings, facilities, and approaches; not to exceed $100,000 for services
as authorized by 5 U.S.C. 3109; up to 5 replacement passenger
vehicles; purchase, rental, repair, and cleaning of uniforms for
employees; $317,557,000, of which not to exceed $30,665,000 for
the instrumentation program, collections acquisition, Museum Support Center equipment and move, exhibition reinstallation, the
National Museum of the American Indian, the repatriation of skeletal remains program, research equipment, information management, and Latino programming shall remain available until
expended, and including such funds as may be necessary to support
American overseas research centers and a total of $125,000 for
the Council of American Overseas Research Centers: Provided, That
funds appropriated herein are available for advance payments to
independent contractors performing research services or participating in official Smithsonian presentations.
CONSTRUCTION AND IMPROVEMENTS, NATIONAL ZOOLOGICAL PARK

For necessary expenses of planning, construction, remodeling,
and equipping of buildings and facilities at the National Zoological
Park, by contract or otherwise, $3,850,000, to remain available
until expended.
REPAIR AND RESTORATION OF BUILDINGS

For necessary expenses of repair and restoration of buildings
owned or occupied by the Smithsonian Institution, by contract or
otherwise, as authorized by section 2 of the Act of August 22,
1949 (63 Stat. 623), including not to exceed $10,000 for services
as authorized by 5 U.S.C. 3109, $39,000,000, to remain available
until expended: Provided, That contracts awarded for environmental
systems, protection systems, and exterior repair or restoration of
buildings of the Smithsonian Institution may be negotiated with
selected contractors and awarded on the basis of contractor qualifications as well as price.
CONSTRUCTION

For necessary expenses for construction, $10,000,000, to remain
available until expended.
NATIONAL GALLERY

OF

ART

SALARIES AND EXPENSES

For the upkeep and operations of the National Gallery of Art,
the protection and care of the works of art therein, and administrative expenses incident thereto, as authorized by the Act of March
24, 1937 (50 Stat. 51), as amended by the public resolution of
April 13, 1939 (Public Resolution 9, Seventy-sixth Congress), including services as authorized by 5 U.S.C. 3109; payment in advance
when authorized by the treasurer of the Gallery for membership

110 STAT. 3009–217

PUBLIC LAW 104–208—SEPT. 30, 1996

in library, museum, and art associations or societies whose publications or services are available to members only, or to members
at a price lower than to the general public; purchase, repair, and
cleaning of uniforms for guards, and uniforms, or allowances therefor, for other employees as authorized by law (5 U.S.C. 5901–
5902); purchase or rental of devices and services for protecting
buildings and contents thereof, and maintenance, alteration, improvement, and repair of buildings, approaches, and grounds; and
purchase of services for restoration and repair of works of art
for the National Gallery of Art by contracts made, without advertising, with individuals, firms, or organizations at such rates or prices
and under such terms and conditions as the Gallery may deem
proper, $53,899,000, of which not to exceed $3,026,000 for the
special exhibition program shall remain available until expended.
REPAIR, RESTORATION AND RENOVATION OF BUILDINGS

For necessary expenses of repair, restoration and renovation
of buildings, grounds and facilities owned or occupied by the
National Gallery of Art, by contract or otherwise, as authorized,
$5,942,000, to remain available until expended: Provided, That
contracts awarded for environmental systems, protection systems,
and exterior repair or renovation of buildings of the National Gallery of Art may be negotiated with selected contractors and awarded
on the basis of contractor qualifications as well as price.
JOHN F. KENNEDY CENTER

FOR THE

PERFORMING ARTS

OPERATIONS AND MAINTENANCE

For necessary expenses for the operation, maintenance and
security of the John F. Kennedy Center for the Performing Arts,
$10,875,000.
CONSTRUCTION

For necessary expenses of capital repair and rehabilitation
of the existing features of the building and site of the John F.
Kennedy Center for the Performing Arts, $9,000,000, to remain
available until expended.
WOODROW WILSON INTERNATIONAL CENTER

FOR

SCHOLARS

SALARIES AND EXPENSES

For expenses necessary in carrying out the provisions of the
Woodrow Wilson Memorial Act of 1968 (82 Stat. 1356) including
hire of passenger vehicles and services as authorized by 5 U.S.C.
3109, $5,840,000.
NATIONAL FOUNDATION

ON THE

ARTS

NATIONAL ENDOWMENT

AND THE

FOR THE

HUMANITIES

ARTS

GRANTS AND ADMINISTRATION

For necessary expenses to carry out the National Foundation
on the Arts and the Humanities Act of 1965, as amended,
$82,734,000, shall be available to the National Endowment for

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–218

the Arts for the support of projects and productions in the arts
through assistance to organizations and individuals pursuant to
section 5(c) of the Act, and for administering the functions of the
Act, to remain available until expended.
MATCHING GRANTS

To carry out the provisions of section 10(a)(2) of the National
Foundation on the Arts and the Humanities Act of 1965, as amended, $16,760,000, to remain available until expended, to the National
Endowment for the Arts: Provided, That this appropriation shall
be available for obligation only in such amounts as may be equal
to the total amounts of gifts, bequests, and devises of money,
and other property accepted by the Chairman or by grantees of
the Endowment under the provisions of section 10(a)(2), subsections
11(a)(2)(A) and 11(a)(3)(A) during the current and preceding fiscal
years for which equal amounts have not previously been appropriated.
NATIONAL ENDOWMENT

FOR THE

HUMANITIES

GRANTS AND ADMINISTRATION

For necessary expenses to carry out the National Foundation
on the Arts and the Humanities Act of 1965, as amended,
$96,100,000 shall be available to the National Endowment for the
Humanities for support of activities in the humanities, pursuant
to section 7(c) of the Act, and for administering the functions
of the Act, to remain available until expended.
MATCHING GRANTS

To carry out the provisions of section 10(a)(2) of the National
Foundation on the Arts and the Humanities Act of 1965, as amended, $13,900,000, to remain available until expended, of which
$8,000,000 shall be available to the National Endowment for the
Humanities for the purposes of section 7(h): Provided, That this
appropriation shall be available for obligation only in such amounts
as may be equal to the total amounts of gifts, bequests, and devises
of money, and other property accepted by the Chairman or by
grantees of the Endowment under the provisions of subsections
11(a)(2)(B) and 11(a)(3)(B) during the current and preceding fiscal
years for which equal amounts have not previously been appropriated.
INSTITUTE

OF

MUSEUM SERVICES

GRANTS AND ADMINISTRATION

For carrying out title II of the Arts, Humanities, and Cultural
Affairs Act of 1976, as amended, $22,000,000, to remain available
until expended.
ADMINISTRATIVE PROVISIONS

None of the funds appropriated to the National Foundation
on the Arts and the Humanities may be used to process any grant
or contract documents which do not include the text of 18 U.S.C.
1913: Provided, That none of the funds appropriated to the National

110 STAT. 3009–219

PUBLIC LAW 104–208—SEPT. 30, 1996

Foundation on the Arts and the Humanities may be used for official
reception and representation expenses.
COMMISSION

OF

FINE ARTS

SALARIES AND EXPENSES

For expenses made necessary by the Act establishing a Commission of Fine Arts (40 U.S.C. 104), $867,000.
NATIONAL CAPITAL ARTS AND CULTURAL AFFAIRS

For necessary expenses as authorized by Public Law 99–190
(20 U.S.C. 956(a)), as amended, $6,000,000.
ADVISORY COUNCIL

ON

HISTORIC PRESERVATION

SALARIES AND EXPENSES

For necessary expenses of the Advisory Council on Historic
Preservation (Public Law 89–665, as amended), $2,500,000: Provided, That none of these funds shall be available for the compensation of Executive Level V or higher position.
NATIONAL CAPITAL PLANNING COMMISSION
SALARIES AND EXPENSES

For necessary expenses, as authorized by the National Capital
Planning Act of 1952 (40 U.S.C 71–71i), including services as
authorized by 5 U.S.C. 3109, $5,390,000: Provided, That all
appointed members will be compensated at a rate not to exceed
the rate for Executive Schedule Level IV.
FRANKLIN DELANO ROOSEVELT MEMORIAL COMMISSION
SALARIES AND EXPENSES

For necessary expenses of the Franklin Delano Roosevelt Memorial Commission, established by the Act of August 11, 1955 (69
Stat. 694), as amended by Public Law 92–332 (86 Stat. 401),
$500,000 to remain available until expended.
UNITED STATES HOLOCAUST MEMORIAL COUNCIL
HOLOCAUST MEMORIAL COUNCIL

For expenses of the Holocaust Memorial Council, as authorized
by Public Law 96–388 (36 U.S.C. 1401), as amended, $30,707,000,
of which $1,575,000 for the Museum’s repair and rehabilitation
program and $1,264,000 for the Museum’s exhibitions program
shall remain available until expended.
TITLE III—GENERAL PROVISIONS
SEC. 301. The expenditure of any appropriation under this
Act for any consulting service through procurement contract, pursuant to 5 U.S.C. 3109, shall be limited to those contracts where
such expenditures are a matter of public record and available

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–220

for public inspection, except where otherwise provided under existing law, or under existing Executive Order issued pursuant to
existing law.
SEC. 302. No part of any appropriation under this Act shall
be available to the Secretary of the Interior or the Secretary of
Agriculture for the leasing of oil and natural gas by noncompetitive
bidding on publicly owned lands within the boundaries of the Shawnee National Forest, Illinois: Provided, That nothing herein is
intended to inhibit or otherwise affect the sale, lease, or right
to access to minerals owned by private individuals.
SEC. 303. No part of any appropriation contained in this Act
shall be available for any activity or the publication or distribution
of literature that in any way tends to promote public support
or opposition to any legislative proposal on which congressional
action is not complete.
SEC. 304. 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. 305. None of the funds provided in this Act to any department or agency shall be obligated or expended to provide a personal
cook, chauffeur, or other personal servants to any officer or
employee of such department or agency except as otherwise provided
by law.
SEC. 306. No assessments may be levied against any program,
budget activity, subactivity, or project funded by this Act unless
advance notice of such assessments and the basis therefor are
presented to the Committees on Appropriations and are approved
by such Committees.
SEC. 307. (a) COMPLIANCE WITH BUY AMERICAN ACT.—None
of the funds made available in this Act may be expended by an
entity unless the entity agrees that in expending the funds the
entity will comply with sections 2 through 4 of the Act of March
3, 1933 (41 U.S.C. 10a–10c; popularly known as the ‘‘Buy American
Act’’).
(b) SENSE OF CONGRESS; REQUIREMENT REGARDING NOTICE.—
(1) PURCHASE OF AMERICAN-MADE EQUIPMENT AND PRODUCTS.—In the case of any equipment or product that may
be authorized to be purchased with financial assistance provided using funds made available in this Act, it is the sense
of the Congress that entities receiving the assistance should,
in expending the assistance, purchase only American-made
equipment and products.
(2) NOTICE TO RECIPIENTS OF ASSISTANCE.—In providing
financial assistance using funds made available in this Act,
the head of each Federal agency shall provide to each recipient
of the assistance a notice describing the statement made in
paragraph (1) by the Congress.
(c) PROHIBITION OF CONTRACTS WITH PERSONS FALSELY LABELING PRODUCTS AS MADE IN AMERICA.—If it has been finally determined by a court or Federal agency that any person intentionally
affixed a label bearing a ‘‘Made in America’’ inscription, or any
inscription with the same meaning, to any product sold in or shipped
to the United States that is not made in the United States, the
person shall be ineligible to receive any contract or subcontract
made with funds made available in this Act, pursuant to the debarment, suspension, and ineligibility procedures described in sections
9.400 through 9.409 of title 48, Code of Federal Regulations.

110 STAT. 3009–221

PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 308. None of the funds in this Act may be used to plan,
prepare, or offer for sale timber from trees classified as giant
sequoia (Sequoiadendron giganteum) which are located on National
Forest System or Bureau of Land Management lands in a manner
different than such sales were conducted in fiscal year 1995.
SEC. 309. None of the funds made available by this Act may
be obligated or expended by the National Park Service to enter
into or implement a concession contract which permits or requires
the removal of the underground lunchroom at the Carlsbad Caverns
National Park.
SEC. 310. Where the actual costs of construction projects under
self-determination contracts, compacts, or grants, pursuant to Public
Laws 93–638, 103–413, or 100–297, are less than the estimated
costs thereof, use of the resulting excess funds shall be determined
by the appropriate Secretary after consultation with the tribes.
SEC. 311. Notwithstanding Public Law 103–413, quarterly payments of funds to tribes and tribal organizations under annual
funding agreements pursuant to section 108 of Public Law 93–
638, as amended, may be made on the first business day following
the first day of a fiscal quarter.
SEC. 312. None of the funds appropriated or otherwise made
available by this Act may be used for the AmeriCorps program,
unless the relevant agencies of the Department of the Interior
and/or Agriculture follow appropriate reprogramming guidelines:
Provided, That if no funds are provided for the AmeriCorps program
by the VA–HUD and Independent Agencies fiscal year 1997 appropriations bill, then none of the funds appropriated or otherwise
made available by this Act may be used for the AmeriCorps programs.
SEC. 313. None of the funds made available in this Act may
be used (1) to demolish the bridge between Jersey City, New Jersey,
and Ellis Island; or (2) to prevent pedestrian use of such bridge,
when it is made known to the Federal official having authority
to obligate or expend such funds that such pedestrian use is consistent with generally accepted safety standards.
SEC. 314. (a) None of the funds appropriated or otherwise
made available pursuant to this Act shall be obligated or expended
to accept or process applications for a patent for any mining or
mill site claim located under the general mining laws.
(b) The provisions of subsection (a) shall not apply if the Secretary of the Interior determines that, for the claim concerned:
(1) a patent application was filed with the Secretary on or before
September 30, 1994, and (2) all requirements established under
sections 2325 and 2326 of the Revised Statutes (30 U.S.C. 29
and 30) for vein or lode claims and sections 2329, 2330, 2331,
and 2333 of the Revised Statutes (30 U.S.C. 35, 36, and 37) for
placer claims, and section 2337 of the Revised Statutes (30 U.S.C.
42) for mill site claims, as the case may be, were fully complied
with by the applicant by that date.
(c) PROCESSING SCHEDULE.—For those applications for patents
pursuant to subsection (b) which were filed with the Secretary
of the Interior, prior to September 30, 1994, the Secretary of the
Interior shall—
(1) Within three months of the enactment of this Act,
file with the House and Senate Committees on Appropriations
and the Committee on Resources of the House of Representatives and the Committee on Energy and Natural Resources

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–222

of the United States Senate a plan which details how the
Department of the Interior will make a final determination
as to whether or not an applicant is entitled to a patent under
the general mining laws on at least 90 percent of such applications within five years of the enactment of this Act and file
reports annually thereafter with the same committees detailing
actions taken by the Department of the Interior to carry out
such plan; and
(2) Take such actions as may be necessary to carry out
such plan.
(d) MINERAL EXAMINATIONS.—In order to process patent
applications in a timely and responsible manner, upon the request
of a patent applicant, the Secretary of the Interior shall allow
the applicant to fund a qualified third-party contractor to be selected
by the Bureau of Land Management to conduct a mineral examination of the mining claims or mill sites contained in a patent application as set forth in subsection (b). The Bureau of Land Management
shall have the sole responsibility to choose and pay the thirdparty contractor in accordance with the standard procedures
employed by the Bureau of Land Management in the retention
of third-party contractors.
SEC. 315. None of the funds appropriated or otherwise made
available by this Act may be used for the purposes of acquiring
lands in the counties of Gallia, Lawrence, Monroe, or Washington,
Ohio, for the Wayne National Forest.
SEC. 316. Of the funds provided to the National Endowment
for the Arts:
(a) The Chairperson shall only award a grant to an individual if such grant is awarded to such individual for a literature
fellowship, National Heritage Fellowship, or American Jazz
Masters Fellowship.
(b) The Chairperson shall establish procedures to ensure
that no funding provided through a grant, except a grant made
to a State or local arts agency, or regional group, may be
used to make a grant to any other organization or individual
to conduct activity independent of the direct grant recipient.
Nothing in this subsection shall prohibit payments made in
exchange for goods and services.
(c) No grant shall be used for seasonal support to a group,
unless the application is specific to the contents of the season,
including identified programs and/or projects.
SEC. 317. None of the funds available to the Department of
the Interior or the Department of Agriculture by this or any other
Act may be used to prepare, promulgate, implement, or enforce
any interim or final rule or regulation pursuant to Title VIII of
the Alaska National Interest Lands Conservation Act to assert
jurisdiction, management, or control over any waters (other than
non-navigable waters on Federal lands), non-Federal lands, or lands
selected by, but not conveyed to, the State of Alaska pursuant
to the Submerged Lands Act of 1953 or the Alaska Statehood
Act, or an Alaska Native Corporation pursuant to the Alaska Native
Claims Settlement Act.
SEC. 318. No funds appropriated under this or any other Act
shall be used to review or modify sourcing areas previously approved
under section 490(c)(3) of the Forest Resources Conservation and
Shortage Relief Act of 1990 (Public Law 101–382) or to enforce
or implement Federal regulations 36 CFR part 223 promulgated

110 STAT. 3009–223

16 USC 620c
note.

16 USC 460l–6a
note.

PUBLIC LAW 104–208—SEPT. 30, 1996

on September 8, 1995. The regulations and interim rules in effect
prior to September 8, 1995 (36 CFR 223.48, 36 CFR 223.87, 36
CFR 223 subpart D, 36 CFR 223 subpart F, and 36 CFR 261.6)
shall remain in effect. The Secretary of Agriculture or the Secretary
of the Interior shall not adopt any policies concerning Public Law
101–382 or existing regulations that would restrain domestic
transportation or processing of timber from private lands or impose
additional accountability requirements on any timber. The Secretary
of Commerce shall extend until September 30, 1997, the order
issued under section 491(b)(2)(A) of Public Law 101–382 and shall
issue an order under section 491(b)(2)(B) of such law that will
be effective October 1, 1997.
SEC. 319. Section 101(c) of Public Law 104–134 is amended
as follows: Under the heading ‘‘Title III—General Provisions’’ amend
section 315(b) by striking ‘‘50, areas,’’ and inserting in lieu thereof
‘‘100, areas,’’ and amend section 315(f) by striking ‘‘September 30,
1998’’ and inserting in lieu thereof ‘‘September 30, 1999’’ and by
striking ‘‘September 30, 2001’’ and inserting in lieu thereof ‘‘September 30, 2002’’.
SEC. 320. None of the amounts made available by this Act
may be used for design, planning, implementation, engineering,
construction, or any other activity in connection with a scenic shoreline drive in Pictured Rocks National Lakeshore.
SEC. 321. LAND TRANSFER, BEND SILVICULTURE LAB,
DESCHUTES NATIONAL FOREST, OREGON.—
(a) TRANSFER OF REAL PROPERTY AND ALL IMPROVEMENTS
LOCATED THEREON.—Notwithstanding any other provisions of
law, there is hereby transferred, without consideration and
subject to existing valid rights, all right, title and interest
of the United States in and to approximately 5.73 acres of
land as described by plat dated July 7, 1977, (which is on
file and available for public inspection in the Office of the
Chief, USDA Forest Service, Washington, D.C.), as well as
all improvements, including the Bend Silviculture Lab located
thereon, to the Central Oregon Community College, Bend,
Oregon; this being a portion of the same tract acquired by
donation from the City of Bend on August 10, 1960, through
a Bargain and Sale deed to the USDA Forest Service for use
as a research lab, and recorded in volume 125, page 508 of
the Deschutes County, Oregon, Deed Records.
(b) CONDITIONS OF TRANSFER.—The transfer effected by
subsection (a) is made subject to no special terms or conditions.
SEC. 322. No part of any appropriation contained in this Act
or any other Act shall be expended or obligated to fund the activities
of the Office of Forestry and Economic Assistance, or any successor
office after December 31, 1996.
SEC. 323. (a) The Secretary of the Interior is authorized to
accept title to approximately 84 acres of land located in Prince
Georges County, Maryland, adjacent to Oxon Cove Park, and bordered generally by the Potomac River, Interstate 295 and the Woodrow Wilson Bridge, or any interest therein, and in exchange therefor
may convey to the Corrections Corporation of America approximately 50 acres of land located in Oxon Cove Park in the District
of Columbia and bordered generally by Oxon Cove, Interstate 295
and the District of Columbia Impound Lot, or any interest therein.
(b) Before proceeding with an exchange, the Secretary shall
determine if the federal property is suitable for exchange under

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–224

the criteria normally used by the National Park Service. The
exchange shall comply with applicable regulations and National
Park Service policies for land exchanges.
(c)(1) The Secretary shall not acquire any lands under this
section if the Secretary determines that the lands or any portion
thereof have become contaminated with hazardous substances (as
defined in the Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C. 960l)).
(2) Notwithstanding any other provision of law, the United
States shall have no responsibility or liability with respect to any
hazardous wastes or other substances placed on any of the lands
covered by this section after their transfer to the ownership of
any party, but nothing in this section shall be construed as either
diminishing or increasing any responsibility or liability of the
United States based on the condition of such lands on the date
of their transfer to the ownership of another party: Provided, That
the Corrections Corporation of America shall indemnify the United
States for liabilities arising under the Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C. 960l)
and the Resource Conservation Recovery Act (42 U.S.C. 690l, et
seq.).
(d) The properties so exchanged either shall be approximately
equal in fair market value or if they are not approximately equal,
shall be equalized by the payment of cash to the Corporation
or to the Secretary as required or in the event the value of the
Corporation’s lands is greater, the acreage may be reduced so that
the fair market value is approximately equal: Provided, That the
Secretary shall order appraisals made of the fair market value
for improvements thereon: Provided further, That any such cash
payment received by the Secretary shall be deposited to ‘‘Miscellaneous Trust Funds, National Park Service’’ and shall be available
without further appropriation until expended for the acquisition
of land within the National Park System.
(e) Costs of conducting necessary land surveys, preparing the
legal descriptions of the lands to be conveyed, performing the
appraisals, and administrative costs incurred in completing the
exchange shall be borne by the Corporation.
(f) Following any exchange authorized by this provision, the
boundaries of Oxon Cove Park shall be expanded to include the
land acquired by the United States.
SEC. 324. SECTION 1. LAND EXCHANGE.—
(a) EXCHANGE.—Subject to subsection (c), the Secretary
of Agriculture (referred to in this section as the ‘‘Secretary’’)
shall convey all right, title, and interest of the United States
in and to the National Forest System lands described in subsection (b)(1) to Public Utility District No. 1 of Chelan County,
Washington (referred to in this section as the ‘‘Public Utility
District’’), in exchange for the conveyance to the Department
of Agriculture by the Public Utility District of all right, title,
and interest of the Public Utility District in and to the lands
described in subsection (b)(2).
(b) DESCRIPTION OF LANDS.—
(1) NATIONAL FOREST SYSTEM LANDS.—The National
Forest System lands referred to in subsection (a) are 122
acres, more or less, that are partially occupied by a
wastewater treatment facility referred to in subsection
(c)(4)(A) with the following legal description:

110 STAT. 3009–225

PUBLIC LAW 104–208—SEPT. 30, 1996
(A) The NE1⁄4 of SW1⁄4 of section 27 of township
27 north, range 17 east, Willamette Meridian, Chelan
County, Washington.
(B) The N1⁄2 of SE1⁄4 of SW1⁄4 of such section
27.
(C) The W1⁄2 of NW1⁄4 of SE1⁄4 of such section
27.
(D) The NW1⁄4 of SW1⁄4 of SE1⁄4 of such section
27.
(E) The E1⁄2 of NW1⁄4 of the SE1⁄4 of such section
27.
(F) That portion of the S1⁄2 of SE1⁄4 of SW1⁄4 lying
north of the northerly edge of Highway 209 rightof-way of such section 27.
(2) PUBLIC UTILITY DISTRICT LANDS.—The lands owned
by the Public Utility District are 109.15 acres, more or
less, with the following legal description:
(A) S1⁄2 of SW1⁄4 of section 35 of township 26
north, range 17 east, Willamette Meridian, Chelan
County, Washington.
(B) The area specified by Public Utility District
No. 1 as Government Lot 5 in such section 35.
(c) REQUIREMENTS FOR EXCHANGE.—
(1) TITLE ACCEPTANCE AND CONVEYANCE.—Upon offer
by the Public Utility District of all right, title and interest
in and to the lands described in subsection (b)(2), if the
title is found acceptable by the Secretary, the Secretary
shall accept title to such lands and interests therein and
shall convey to the Public Utility District all right, title,
and interest of the United States in and to the lands
described in subsection (b)(1).
(2) APPRAISALS REQUIRED.—Before making an exchange
pursuant to subsection (a), the Secretary shall conduct
appraisals of the lands that are subject to the exchange
to determine the fair market value of the lands. Such
appraisals shall not include the value of the wastewater
treatment facility referred to in paragraph (4)(A).
(3) ADDITIONAL CONSIDERATION.—If, on the basis of
the appraisals made under paragraph (1), the Secretary
determines that the fair market value of the lands to
be conveyed by one party under subsection (a) is less than
the fair market value of the lands to be conveyed by the
other party under subsection (a), then, as a condition of
making the exchange under subsection (a), the party
conveying the lands with the lesser value shall pay the
other party the amount by which the fair market value
of the lands of greater value exceeds the fair market value
of the lands of lesser value.
(4) CONVEYANCE OF WASTEWATER TREATMENT FACILITY.—(A) As part of an exchange made under subsection
(a), the Secretary shall convey to the Public Utility District
of Chelan County, Washington, all right, title and interest
of the United States in and to the wastewater treatment
facility (including the wastewater treatment plant and
associated lagoons) located on the lands described in subsection (b)(1) that is in existence on the date of the
exchange.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–226

(B) As a condition for the exchange under subsection
(a), the Public Utility District shall provide for a credit
equal to the fair market value of the wastewater treatment
facility conveyed pursuant to subparagraph (A) (determined
as of November 4, 1991), that shall be applied to the
United States’ share of any new wastewater treatment
facility constructed by the Public Utility District after such
date.
(d) ADDITIONAL TERMS AND CONDITIONS.—The Secretary
may require such additional terms and conditions in connection
with the exchange under this section as the Secretary determines appropriate to protect the interests of the United States.
SEC. 325. ‘‘Snoqualmie National Forest Boundary Adjustment
Act of 1996.’’
(a) IN GENERAL.—The Secretary of Agriculture is hereby
directed to modify the boundary of the Snoqualmie National
Forest to include and encompass 10,589.47 acres, more or less,
as generally depicted on a map entitled ‘‘Snoqualmie National
Forest Proposed 1996 Boundary Modification’’ dated July, 1996.
Such map, together with a legal description of all lands included
in the boundary adjustment, shall be on file and available
for public inspection in the Office of the Chief of the Forest
Service in Washington, District of Columbia.
(b) RULE FOR LAND AND WATER CONSERVATION FUND.—
For the purposes of section 7 of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l–9), the boundary of
the Snoqualmie National Forest, as modified pursuant to subsection (a), shall be considered to be the boundary of that
National Forest as of January 1, 1965.
SEC. 326. Sugarbush Land Exchange Act of 1996.
(a) EXCHANGE OR SALE OF LAND.—
(1) If Sugarbush Resort Holdings, Inc. conveys to the
United States land acceptable to the Secretary of Agriculture that is at least equal in value to the value of
the land described in subsection (a)(2), makes a payment
of cash at least equal to that value, or conveys land and
makes a payment of cash that in combination are at least
equal to that value, the Secretary, subject to valid existing
rights, shall, under such terms and conditions as the Secretary may prescribe, convey all right, title, and interest
of the United States in and to the land described in subsection (a)(2).
(2) FEDERAL LAND TO BE EXCHANGED.—The Federal
land to be exchanged is approximately 57 acres of federally
owned land in the Green Mountain National Forest
depicted on the map entitled ‘‘Green Mountain National
Forest, Sugarbush Exchange,’’ dated December 1995.
(3) Lands acquired from Sugarbush Resort Holdings,
Inc.—Any land conveyed to the United States in an
exchange under subsection (a)(1) shall be subject to such
valid existing rights of record as may be acceptable to
the Secretary, and the title to the parcel shall conform
with the title approval standards applicable to federal land
acquisitions.
(b) ADMINISTRATION OF LAND.—
(1) ADDITION TO GREEN MOUNTAIN NATIONAL FOREST.—
On approval and acceptance of title by the Secretary, the

110 STAT. 3009–227

16 USC 1132
note.

PUBLIC LAW 104–208—SEPT. 30, 1996

land acquired by the United States through an exchange
or with proceeds from a sale under subsection (a) shall
become part of the Green Mountain National Forest, and
the boundaries of the National Forest shall be adjusted
to include the land.
(2) ADMINISTRATION.—Land acquired under this Act
shall be administered by the Secretary in accordance with
the laws (including regulations) pertaining to the National
Forest System.
(3) AUTHORITY OF THE SECRETARY.—This section does
not limit the authority of the Secretary to adjust the boundaries of the Green Mountain National Forest pursuant
to section 11 of the Act of March 1, 1911 (36 Stat. 963,
chapter 186; 16 U.S.C. 521) (commonly known as the
‘‘Weeks Law’’).
(4) For the purposes of section 7 of the Land and
Water Conservation Fund Act of 1965 (16 U.S.C. 460l–
9), the boundaries of the Green Mountain National Forest,
as adjusted under this Act, shall be considered to be the
boundaries of the Green Mountain National Forest as of
January 1, 1965.
SEC. 327. Snowbird Wilderness Study Area.
(a) IN GENERAL.—Section 6(a)(4) of the North Carolina Wilderness Act of 1984 (Public Law 98–324) is amended—
(1) by striking ‘‘eight thousand four hundred and ninety
acres’’ and inserting ‘‘8,390 acres’’; and
(2) by striking ‘‘July 1983’’ and inserting ‘‘July 1996’’.
(b) MANAGEMENT.—The Secretary of Agriculture shall manage
the area removed from wilderness study status by the amendments
made by subsection (a) in accordance with the provisions of law
applicable to adjacent areas outside the wilderness study area.
SEC. 328. Renaming of Wilderness Area.
(a) The Columbia Wilderness, created by the Oregon Wilderness
Act of 1984, Public Law 98–328, located in the Mt. Hood National
Forest, Oregon, shall be known and designated as the ‘‘Mark O.
Hatfield Wilderness’’.
(b) Any references in a law, map, regulation, document, paper,
or other record of the United States to the Columbia Wilderness
shall be deemed to be a reference to the ‘‘Mark O. Hatfield Wilderness’’.
SEC. 329. Notwithstanding any other provision of law, for fiscal
year 1997 the Secretaries of Agriculture and Interior are authorized
to limit competition for watershed restoration project contracts as
part of the ‘‘Jobs in the Woods’’ component of the President’s Forest
Plan for the Pacific Northwest to individuals and entities in historically timber-dependent areas in the States of Washington, Oregon,
and northern California that have been affected by reduced timber
harvesting on Federal lands.
SEC. 330. Section 9 of the Rhode Island Indian Claims Settlement Act (25 U.S.C. 1708) is amended—
(1) by striking ‘‘Sec. 9. Except as’’; and inserting the following:
‘‘(a) IN GENERAL.—Except as’’;
(2) by striking the section heading and inserting the following:

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–228

‘‘SEC. 9. APPLICABILITY OF STATE LAW; TREATMENT OF SETTLEMENT
LANDS UNDER THE INDIAN GAMING REGULATORY ACT.’’;

and
(3) by adding at the end the following new subsection:
‘‘(b) TREATMENT OF SETTLEMENT LANDS UNDER THE INDIAN
GAMING REGULATORY ACT.—For purposes of the Indian Gaming
Regulatory Act (25 U.S.C. 2701 et seq.), settlement lands shall
not be treated as Indian lands.’’.
TITLE IV—EMERGENCY APPROPRIATIONS
DEPARTMENT OF THE INTERIOR
BUREAU

OF

LAND MANAGEMENT

MANAGEMENT OF LANDS AND RESOURCES

For an additional amount for management of lands and
resources, $3,500,000, to remain available until expended, to restore
public lands damaged by fire: Provided, That Congress hereby designates this amount as an emergency requirement pursuant to
section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended: Provided further, That this
amount shall be available only to the extent that an official budget
request for a specific dollar amount, that includes designation of
the entire amount as an emergency requirement as defined in
the Balanced Budget and Emergency Deficit Control Act of 1985,
as amended, is transmitted by the President to the Congress.
WILDLAND FIRE MANAGEMENT

For an additional amount for wildland fire management,
$100,000,000, to remain available until expended, for emergency
rehabilitation and wildfire suppression activities of the Department
of the Interior: Provided, That Congress hereby designates this
amount as an emergency requirement pursuant to section
251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended: Provided further, That this amount
shall be available only to the extent that an official budget request
for a specific dollar amount, that includes designation of the entire
amount as an emergency requirement as defined in the Balanced
Budget and Emergency Deficit Control Act of 1985, as amended,
is transmitted by the President to the Congress.
OREGON AND CALIFORNIA GRANT LANDS

For an additional amount for Oregon and California grant
lands, $2,500,000, to remain available until expended, to restore
public lands damaged by fire: Provided, That Congress hereby designates this amount as an emergency requirement pursuant to
section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended: Provided further, That this
amount shall be available only to the extent that an official budget
request for a specific dollar amount, that includes designation of
the entire amount as an emergency requirement as defined in
the Balanced Budget and Emergency Deficit Control Act of 1985,
as amended, is transmitted by the President to the Congress.

110 STAT. 3009–229

PUBLIC LAW 104–208—SEPT. 30, 1996
UNITED STATES FISH

AND

WILDLIFE SERVICE

RESOURCE MANAGEMENT

For an additional amount for resource management, $2,100,000,
to remain available until expended, of which $600,000 is to restore
public lands damaged by fire and $1,500,000 is address anti-terrorism requirements: Provided, That Congress hereby designates this
amount as an emergency requirement pursuant to section
251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended: Provided further, That this amount
shall be available only to the extent that an official budget request
for a specific dollar amount, that includes designation of the entire
amount as an emergency requirement as defined in the Balanced
Budget and Emergency Deficit Control Act of 1985, as amended,
is transmitted by the President to the Congress.
CONSTRUCTION

For an additional amount for construction, $15,891,000, to
remain available until expended, to repair damage caused by hurricanes, floods and other acts of nature: Provided, That Congress
hereby designates this amount as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended: Provided further, That
this amount shall be available only to the extent that an official
budget request for a specific dollar amount, that includes designation of the entire amount as an emergency requirement as defined
in the Balanced Budget and Emergency Deficit Control Act of
1985, as amended, is transmitted by the President to the Congress.
NATIONAL PARK SERVICE
OPERATION OF THE NATIONAL PARK SYSTEM

For an additional amount for operation of the National park
system, $2,300,000, to remain available until expended, to address
anti-terrorism requirements: Provided, That Congress hereby designates this amount as an emergency requirement pursuant to
section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended: Provided further, That this
amount shall be available only to the extent that an official budget
request for a specific dollar amount, that includes designation of
the entire amount as an emergency requirement as defined in
the Balanced Budget and Emergency Deficit Control Act of 1985,
as amended, is transmitted by the President to the Congress.
CONSTRUCTION

For an additional amount for construction, $9,300,000, to
remain available until expended, of which $3,000,000 is to repair
damage caused by hurricanes and $6,300,000 is to address antiterrorism requirements: Provided, That Congress hereby designates
this amount as an emergency requirement pursuant to section
251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended: Provided further, That this amount
shall be available only to the extent that an official budget request
for a specific dollar amount, that includes designation of the entire
amount as an emergency requirement as defined in the Balanced

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–230

Budget and Emergency Deficit Control Act of 1985, as amended,
is transmitted by the President to the Congress.
UNITED STATES GEOLOGICAL SURVEY
SURVEYS, INVESTIGATIONS, AND RESEARCH

For an additional amount for surveys, investigations, and
research, $1,138,000, to remain available until expended, to address
damage caused by hurricanes and floods: Provided, That Congress
hereby designates this amount as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended: Provided further, That
this amount shall be available only to the extent that an official
budget request for a specific dollar amount, that includes designation of the entire amount as an emergency requirement as defined
in the Balanced Budget and Emergency Deficit Control Act of
1985, as amended, is transmitted by the President to the Congress.
BUREAU

OF INDIAN

AFFAIRS

OPERATION OF INDIAN PROGRAMS

For an additional amount for operation of Indian programs,
$6,600,000, to remain available until expended, to repair damage
caused by floods and to restore Indian lands damaged by fire:
Provided, That Congress hereby designates this amount as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended: Provided further, That this amount shall be available only
to the extent that an official budget request for a specific dollar
amount, that includes designation of the entire amount as an emergency requirement as defined in the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, is transmitted
by the President to the Congress.
CONSTRUCTION

For an additional amount for construction, $6,000,000, to
remain available until expended, to repair damage caused by floods:
Provided, That Congress hereby designates this amount as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended: Provided further, That this amount shall be available only
to the extent that an official budget request for a specific dollar
amount, that includes designation of the entire amount as an emergency requirement as defined in the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, is transmitted
by the President to the Congress.
DEPARTMENT OF AGRICULTURE
FOREST SERVICE
NATIONAL FOREST SYSTEM

For an additional amount for the National Forest System,
$3,395,000, to remain available until expended, to repair damage
caused by hurricanes: Provided, That Congress hereby designates

110 STAT. 3009–231

PUBLIC LAW 104–208—SEPT. 30, 1996

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

For an additional amount for wildland fire management,
$550,000,000, to remain available until expended, for
presuppression due to emergencies, for emergency fire suppression
on or adjacent to National Forest System lands or other lands
under fire protection agreement and for emergency rehabilitation
of burned over National Forest System lands: Provided, That such
funds are available for repayment of advances from other appropriations accounts previously transferred for such purposes: Provided
further, That Congress hereby designates this amount as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended: Provided further, That this amount shall be available only
to the extent that an official budget request for a specific dollar
amount, that includes designation of the entire amount as an emergency requirement as defined in the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, is transmitted
by the President to the Congress.
RECONSTRUCTION AND CONSTRUCTION

For an additional amount for reconstruction and construction,
$5,210,000, to remain available until expended, to repair damage
caused by hurricanes: Provided, That Congress hereby designates
this amount as an emergency requirement pursuant to section
251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended: Provided further, That this amount
shall be available only to the extent that an official budget request
for a specific dollar amount, that includes designation of the entire
amount as an emergency requirement as defined in the Balanced
Budget and Emergency Deficit Control Act of 1985, as amended,
is transmitted by the President to the Congress.
OTHER RELATED AGENCIES
SMITHSONIAN INSTITUTION
SALARIES AND EXPENSES

For an additional amount for salaries and expenses, $935,000,
to remain available until expended, to address anti-terrorism
requirements: Provided, That Congress hereby designates this
amount as an emergency requirement pursuant to section
251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended: Provided further, That this amount
shall be available only to the extent that an official budget request
for a specific dollar amount, that includes designation of the entire
amount as an emergency requirement as defined in the Balanced

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–232

Budget and Emergency Deficit Control Act of 1985, as amended,
is transmitted by the President to the Congress.
JOHN F. KENNEDY CENTER

FOR THE

PERFORMING ARTS

OPERATIONS AND MAINTENANCE

For an additional amount for operations and maintenance,
$1,600,000, to remain available until expended, to address antiterrorism requirements: Provided, That Congress hereby designates
this amount as an emergency requirement pursuant to section
251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended: Provided further, That this amount
shall be available only to the extent that an official budget request
for a specific dollar amount, that includes designation of the entire
amount as an emergency requirement as defined in the Balanced
Budget and Emergency Deficit Control Act of 1985, as amended,
is transmitted by the President to the Congress.
CONSTRUCTION

For an additional amount for construction, $3,400,000, to
remain available until expended, to address anti-terrorism requirements: Provided, That Congress hereby designates this amount
as an emergency requirement pursuant to section 251(b)(2)(D)(i)
of the Balanced Budget and Emergency Deficit Control Act of 1985,
as amended: Provided further, That this amount shall be available
only to the extent that an official budget request for a specific
dollar amount, that includes designation of the entire amount as
an emergency requirement as defined in the Balanced Budget and
Emergency Deficit Control Act of 1985, as amended, is transmitted
by the President to the Congress.
NATIONAL GALLERY

OF

ART

SALARIES AND EXPENSES

For an additional amount for salaries and expenses, $382,000,
to remain available until expended, to address anti-terrorism
requirements: Provided, That Congress hereby designates this
amount as an emergency requirement pursuant to section
251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended: Provided further, That this amount
shall be available only to the extent that an official budget request
for a specific dollar amount, that includes designation of the entire
amount as an emergency requirement as defined in the Balanced
Budget and Emergency Deficit Control Act of 1985, as amended,
is transmitted by the President to the Congress.
UNITED STATES HOLOCAUST MEMORIAL COUNCIL
HOLOCAUST MEMORIAL COUNCIL

For an additional amount for the Holocaust Memorial Council,
$1,000,000, to remain available until expended, to address antiterrorism requirements: Provided, That Congress hereby designates
this amount as an emergency requirement pursuant to section
251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended: Provided further, That this amount

110 STAT. 3009–233

PUBLIC LAW 104–208—SEPT. 30, 1996

shall be available only to the extent that an official budget request
for a specific dollar amount, that includes designation of the entire
amount as an emergency requirement as defined in the Balanced
Budget and Emergency Deficit Control Act of 1985, as amended,
is transmitted by the President to the Congress.
This Act may be cited as the ‘‘Department of the Interior
and Related Agencies Appropriations Act, 1997’’.
(e) For programs, projects or activities in the Departments
of Labor, Health and Human Services, and Education, and Related
Agencies Appropriations Act, 1997, provided as follows, to be effective as if it had been enacted into law as the regular appropriations
Act:
AN ACT
Making appropriations for the Departments of Labor, Health and Human Services,
and Education, and related agencies for the fiscal year ending September 30,
1997, and for other purposes.
Department of
Labor
Appropriations
Act, 1997.

TITLE I—DEPARTMENT OF LABOR
EMPLOYMENT

AND

TRAINING ADMINISTRATION

TRAINING AND EMPLOYMENT SERVICES

For expenses necessary to carry into effect the Job Training
Partnership Act, as amended, including the purchase and hire
of passenger motor vehicles, the construction, alteration, and repair
of buildings and other facilities, and the purchase of real property
for training centers as authorized by the Job Training Partnership
Act; the Women in Apprenticeship and Nontraditional Occupations
Act; the National Skill Standards Act of 1994; and the Schoolto-Work Opportunities Act; $4,719,703,000 plus reimbursements,
of which $3,559,408,000 is available for obligation for the period
July 1, 1997 through June 30, 1998; of which $88,685,000 is available for the period July 1, 1997 through June 30, 2000 for necessary
expenses of construction, rehabilitation, and acquisition of Job Corps
centers; and of which $200,000,000 shall be available from July
1, 1997 through September 30, 1998, for carrying out activities
of the School-to-Work Opportunities Act: Provided, That
$52,502,000 shall be for carrying out section 401 of the Job Training
Partnership Act, $69,285,000 shall be for carrying out section 402
of such Act, $7,300,000 shall be for carrying out section 441 of
such Act, $8,000,000 shall be for all activities conducted by and
through the National Occupational Information Coordinating
Committee under such Act, $895,000,000 shall be for carrying out
title II, part A of such Act, and $126,672,000 shall be for carrying
out title II, part C of such Act: Provided further, That no funds
from any other appropriation shall be used to provide meal services
at or for Job Corps centers: Provided further, That funds provided
to carry out title III of the Job Training Partnership Act shall
not be subject to the limitation contained in subsection (b) of section
315 of such Act; that the waiver allowing a reduction in the cost
limitation relating to retraining services described in subsection
(a)(2) of such section 315 may be granted with respect to funds
from this Act if a substate grantee demonstrates to the Governor
that such waiver is appropriate due to the availability of lowcost retraining services, is necessary to facilitate the provision of

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–234

needs-related payments to accompany long-term training, or is necessary to facilitate the provision of appropriate basic readjustment
services; and that funds provided to carry out the Secretary’s discretionary grants under part B of such title III may be used to
provide needs-related payments to participants who, in lieu of meeting the requirements relating to enrollment in training under section 314(e) of such Act, are enrolled in training by the end of
the sixth week after grant funds have been awarded: Provided
further, That service delivery areas may transfer funding provided
herein under authority of titles II–B and II–C of the Job Training
Partnership Act between the programs authorized by those titles
of that Act, if such transfer is approved by the Governor: Provided
further, That service delivery areas and substate areas may transfer
up to 20 percent of the funding provided herein under authority
of title II–A and title III of the Job Training Partnership Act
between the programs authorized by those titles of the Act, if
such transfer is approved by the Governor: Provided further, That,
notwithstanding any other provision of law, any proceeds from
the sale of Job Corps center facilities shall be retained by the
Secretary of Labor to carry out the Job Corps program: Provided
further, That notwithstanding any other provision of law, the Secretary of Labor may waive any of the statutory or regulatory requirements of titles I–III of the Job Training Partnership Act (except for requirements relating to wage and labor standards, worker
rights, participation and protection, grievance procedures and judicial review, nondiscrimination, allocation of funds to local areas,
eligibility, review and approval of plans, the establishment and
functions of service delivery areas and private industry councils,
and the basic purposes of the Act), and any of the statutory or
regulatory requirements of sections 8–10 of the Wagner-Peyser
Act (except for requirements relating to the provision of services
to unemployment insurance claimants and veterans, and to universal access to basic labor exchange services without cost to job
seekers), only for funds available for expenditure in program year
1997, pursuant to a request submitted by a State which identifies
the statutory or regulatory requirements that are requested to
be waived and the goals which the State or local service delivery
areas intend to achieve, describes the actions that the State or
local service delivery areas have undertaken to remove State or
local statutory or regulatory barriers, describes the goals of the
waiver and the expected programmatic outcomes if the request
is granted, describes the individuals impacted by the waiver, and
describes the process used to monitor the progress in implementing
a waiver, and for which notice and an opportunity to comment
on such request has been provided to the organizations identified
in section 105(a)(1) of the Job Training Partnership Act, if and
only to the extent that the Secretary determines that such requirements impede the ability of the State to implement a plan to
improve the workforce development system and the State has executed a Memorandum of Understanding with the Secretary requiring such State to meet agreed upon outcomes and implement other
appropriate measures to ensure accountability: Provided further,
That the Secretary of Labor shall establish a workforce flexibility
(work-flex) partnership demonstration program under which the
Secretary shall authorize not more than six States, of which at
least three States shall each have populations not in excess of
3,500,000, with a preference given to those States that have been

29 USC 1732
note.

110 STAT. 3009–235

PUBLIC LAW 104–208—SEPT. 30, 1996

designated Ed-Flex Partnership States under section 311(e) of Public Law 103–227, to waive any statutory or regulatory requirement
applicable to service delivery areas or substate areas within the
State under titles I–III of the Job Training Partnership Act (except
for requirements relating to wage and labor standards, grievance
procedures and judicial review, nondiscrimination, allotment of
funds, and eligibility), and any of the statutory or regulatory requirements of sections 8–10 of the Wagner-Peyser Act (except for
requirements relating to the provision of services to unemployment
insurance claimants and veterans, and to universal access to basic
labor exchange services without cost to job seekers), for a duration
not to exceed the waiver period authorized under section 311(e)
of Public Law 103–227, pursuant to a plan submitted by such
States and approved by the Secretary for the provision of workforce
employment and training activities in the States, which includes
a description of the process by which service delivery areas and
substate areas may apply for and have waivers approved by the
State, the requirements of the Wagner-Peyser Act to be waived,
the outcomes to be achieved and other measures to be taken to
ensure appropriate accountability for federal funds.
COMMUNITY SERVICE EMPLOYMENT

FOR

OLDER AMERICANS

(TRANSFER OF FUNDS)

To carry out the activities for national grants or contracts
with public agencies and public or private nonprofit organizations
under paragraph (1)(A) of section 506(a) of title V of the Older
Americans Act of 1965, as amended, or to carry out older worker
activities as subsequently authorized, $361,140,000, including
$21,840,000 which shall be available for the period ending June
30, 1997.
To carry out the activities for grants to States under paragraph
(3) of section 506(a) of title V of the Older Americans Act of
1965, as amended, or to carry out older worker activities as subsequently authorized, $101,860,000, including $6,160,000 which shall
be available for the period ending June 30, 1997.
The funds appropriated under this heading shall be transferred
to the Department of Health and Human Services, ‘‘Aging Services
Programs’’ following the enactment of legislation authorizing the
administration of the program by that Department.
FEDERAL UNEMPLOYMENT BENEFITS AND ALLOWANCES

For payments during the current fiscal year of trade adjustment
benefit payments and allowances under part I, and for training,
for allowances for job search and relocation, and for related State
administrative expenses under part II, subchapters B and D, chapter 2, title II of the Trade Act of 1974, as amended, $324,500,000,
together with such amounts as may be necessary to be charged
to the subsequent appropriation for payments for any period subsequent to September 15 of the current year.
STATE UNEMPLOYMENT INSURANCE AND EMPLOYMENT SERVICE
OPERATIONS

For authorized administrative expenses, $173,452,000, together
with not to exceed $3,146,826,000 (including not to exceed

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–236

$1,653,000 which may be used for amortization payments to States
which had independent retirement plans in their State employment
service agencies prior to 1980, and including not to exceed
$2,000,000 which may be obligated in contracts with non-State
entities for activities such as occupational and test research activities which benefit the Federal-State Employment Service System),
which may be expended from the Employment Security Administration account in the Unemployment Trust Fund including the cost
of administering section 1201 of the Small Business Job Protection
Act of 1996, section 7(d) of the Wagner-Peyser Act, as amended,
the Trade Act of 1974, as amended, the Immigration Act of 1990,
and the Immigration and Nationality Act, as amended, and of
which the sums available in the allocation for activities authorized
by title III of the Social Security Act, as amended (42 U.S.C.
502–504), and the sums available in the allocation for necessary
administrative expenses for carrying out 5 U.S.C. 8501–8523, shall
be available for obligation by the States through December 31,
1997, except that funds used for automation acquisitions shall
be available for obligation by States through September 30, 1999;
and of which $23,452,000, together with not to exceed $738,283,000
of the amount which may be expended from said trust fund, shall
be available for obligation for the period July 1, 1997 through
June 30, 1998, to fund activities under the Act of June 6, 1933,
as amended, including the cost of penalty mail authorized under
39 U.S.C. 3202(a)(1)(E) made available to States in lieu of allotments for such purpose, and of which $216,333,000 shall be available only to the extent necessary for additional State allocations
to administer unemployment compensation laws to finance
increases in the number of unemployment insurance claims filed
and claims paid or changes in a State law: Provided, That to
the extent that the Average Weekly Insured Unemployment (AWIU)
for fiscal year 1997 is projected by the Department of Labor to
exceed 2,828,000 an additional $28,600,000 shall be available for
obligation for every 100,000 increase in the AWIU level (including
a pro rata amount for any increment less than 100,000) from
the Employment Security Administration Account of the Unemployment Trust Fund: Provided further, That funds appropriated in
this Act which are used to establish a national one-stop career
center network may be obligated in contracts, grants or agreements
with non-State entities: Provided further, That funds appropriated
under this Act for activities authorized under the Wagner-Peyser
Act, as amended, and title III of the Social Security Act, may
be used by the States to fund integrated Employment Service and
Unemployment Insurance automation efforts, notwithstanding cost
allocation principles prescribed under Office of Management and
Budget Circular A–87.
ADVANCES TO THE UNEMPLOYMENT TRUST FUND AND OTHER FUNDS

For repayable advances to the Unemployment Trust Fund as
authorized by sections 905(d) and 1203 of the Social Security Act,
as amended, and to the Black Lung Disability Trust Fund as
authorized by section 9501(c)(1) of the Internal Revenue Code of
1954, as amended; and for nonrepayable advances to the Unemployment Trust Fund as authorized by section 8509 of title 5, United
States Code, section 104(d) of Public Law 102–164, and section
5 of Public Law 103–6, and to the ‘‘Federal unemployment benefits

110 STAT. 3009–237

PUBLIC LAW 104–208—SEPT. 30, 1996

and allowances’’ account, to remain available until September 30,
1998, $373,000,000.
In addition, for making repayable advances to the Black Lung
Disability Trust Fund in the current fiscal year after September
15, 1997, for costs incurred by the Black Lung Disability Trust
Fund in the current fiscal year, such sums as may be necessary.
PROGRAM ADMINISTRATION

For expenses of administering employment and training programs and for carrying out section 908 of the Social Security Act,
$81,393,000, together with not to exceed $39,977,000, which may
be expended from the Employment Security Administration account
in the Unemployment Trust Fund.
PENSION

AND

WELFARE BENEFITS ADMINISTRATION
SALARIES AND EXPENSES

For necessary expenses for Pension and Welfare Benefits
Administration, $77,083,000, of which $6,000,000 shall remain
available through September 30, 1998 for expenses of revising the
processing of employee benefit plan returns.
PENSION BENEFIT GUARANTY CORPORATION
PENSION BENEFIT GUARANTY CORPORATION FUND

The Pension Benefit Guaranty Corporation is authorized to make
such expenditures, including financial assistance authorized by section 104 of Public Law 96–364, within 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, as amended (31 U.S.C. 9104), as may
be necessary in carrying out the program through September 30,
1997, for such Corporation: Provided, That not to exceed
$10,345,000 shall be available for administrative expenses of the
Corporation: Provided further, That expenses of such Corporation
in connection with the termination of pension plans, for the acquisition, protection or management, and investment of trust assets,
and for benefits administration services shall be considered as
non-administrative expenses for the purposes hereof, and excluded
from the above limitation.
EMPLOYMENT STANDARDS ADMINISTRATION
SALARIES AND EXPENSES

For necessary expenses for the Employment Standards Administration, including reimbursement to State, Federal, and local agencies and their employees for inspection services rendered,
$290,422,000, together with $983,000 which may be expended from
the Special Fund in accordance with sections 39(c) and 44(j) of
the Longshore and Harbor Workers’ Compensation Act: Provided,
That the Secretary of Labor is authorized to accept, retain, and
spend, until expended, in the name of the Department of Labor,
all sums of money ordered to be paid to the Secretary of Labor,
in accordance with the terms of the Consent Judgment in Civil

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–238

Action No. 91–0027 of the United States District Court for the
District of the Northern Mariana Islands (May 21, 1992): Provided
further, That the Secretary of Labor is authorized to establish
and, in accordance with 31 U.S.C. 3302, collect and deposit in
the Treasury fees for processing applications and issuing certificates
under sections 11(d) and 14 of the Fair Labor Standards Act of
1938, as amended (29 U.S.C. 211(d) and 214) and for processing
applications and issuing registrations under Title I of the Migrant
and Seasonal Agricultural Worker Protection Act, 29 U.S.C. 1801
et seq.
SPECIAL BENEFITS
(INCLUDING TRANSFER OF FUNDS)

For the payment of compensation, benefits, and expenses (except
administrative expenses) accruing during the current or any prior
fiscal year authorized by title 5, chapter 81 of the United States
Code; continuation of benefits as provided for under the head
‘‘Civilian War Benefits’’ in the Federal Security Agency Appropriation Act, 1947; the Employees’ Compensation Commission Appropriation Act, 1944; and sections 4(c) and 5(f) of the War Claims
Act of 1948 (50 U.S.C. App. 2012); and 50 per centum of the
additional compensation and benefits required by section 10(h) of
the Longshore and Harbor Workers’ Compensation Act, as amended,
$213,000,000 together with such amounts as may be necessary
to be charged to the subsequent year appropriation for the payment
of compensation and other benefits for any period subsequent to
August 15 of the current year: Provided, That such sums as are
necessary may be used under section 8104 of title 5, United States
Code, by the Secretary to reimburse an employer, who is not the
employer at the time of injury, for portions of the salary of a
reemployed, disabled beneficiary: Provided further, That balances
of reimbursements unobligated on September 30, 1996, shall remain
available until expended for the payment of compensation, benefits,
and expenses: Provided further, That in addition there shall be
transferred to this appropriation from the Postal Service and from
any other corporation or instrumentality required under section
8147(c) of title 5, United States Code, to pay an amount for its
fair share of the cost of administration, such sums as the Secretary
of Labor determines to be the cost of administration for employees
of such fair share entities through September 30, 1997: Provided
further, That of those funds transferred to this account from the
fair share entities to pay the cost of administration, $11,390,000
shall be made available to the Secretary of Labor for expenditures
relating to capital improvements in support of Federal Employees’
Compensation Act administration, and the balance of such funds
shall be paid into the Treasury as miscellaneous receipts: Provided
further, That the Secretary may require that any person filing
a notice of injury or a claim for benefits under Subchapter 5,
U.S.C., chapter 81, or under subchapter 33, U.S.C. 901, et seq.
(the Longshore and Harbor Workers’ Compensation Act, as amended), provide as part of such notice and claim, such identifying
information (including Social Security account number) as such
regulations may prescribe.

110 STAT. 3009–239

PUBLIC LAW 104–208—SEPT. 30, 1996
BLACK LUNG DISABILITY TRUST FUND
(INCLUDING TRANSFER OF FUNDS)

For payments from the Black Lung Disability Trust Fund,
$1,007,644,000, of which $961,665,000 shall be available until
September 30, 1998, for payment of all benefits as authorized
by section 9501(d) (1), (2), (4), and (7) of the Internal Revenue
Code of 1954, as amended, and interest on advances as authorized
by section 9501(c)(2) of that Act, and of which $26,071,000 shall
be available for transfer to Employment Standards Administration,
Salaries and Expenses, $19,621,000 for transfer to Departmental
Management, Salaries and Expenses, and $287,000 for transfer
to Departmental Management, Office of Inspector General, for
expenses of operation and administration of the Black Lung Benefits
program as authorized by section 9501(d)(5)(A) of that Act: Provided, That, in addition, such amounts as may be necessary may
be charged to the subsequent year appropriation for the payment
of compensation, interest, or other benefits for any period subsequent to August 15 of the current year: Provided further, That
in addition such amounts shall be paid from this fund into miscellaneous receipts as the Secretary of the Treasury determines
to be the administrative expenses of the Department of the Treasury
for administering the fund during the current fiscal year, as authorized by section 9501(d)(5)(B) of that Act.
OCCUPATIONAL SAFETY

AND

HEALTH ADMINISTRATION

SALARIES AND EXPENSES

29 USC 670 note.

For necessary expenses for the Occupational Safety and Health
Administration, $325,734,000, including not to exceed $77,354,000
which shall be the maximum amount available for grants to States
under section 23(g) of the Occupational Safety and Health Act,
which grants shall be no less than fifty percent of the costs of
State occupational safety and health programs required to be
incurred under plans approved by the Secretary under section 18
of the Occupational Safety and Health Act of 1970; and, in addition,
notwithstanding 31 U.S.C. 3302, the Occupational Safety and
Health Administration may retain up to $750,000 per fiscal year
of training institute course tuition fees, otherwise authorized by
law to be collected, and may utilize such sums for occupational
safety and health training and education grants: Provided, That,
notwithstanding 31 U.S.C. 3302, the Secretary of Labor is authorized, during the fiscal year ending September 30, 1997, to collect
and retain fees for services provided to Nationally Recognized Testing Laboratories, and may utilize such sums, in accordance with
the provisions of 29 U.S.C. 9a, to administer national and international laboratory recognition programs that ensure the safety
of equipment and products used by workers in the workplace:
Provided further, That none of the funds appropriated under this
paragraph shall be obligated or expended to prescribe, issue, administer, or enforce any standard, rule, regulation, or order under
the Occupational Safety and Health Act of 1970 which is applicable
to any person who is engaged in a farming operation which does
not maintain a temporary labor camp and employs ten or fewer
employees: Provided further, That no funds appropriated under

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–240

this paragraph shall be obligated or expended to administer or
enforce any standard, rule, regulation, or order under the Occupational Safety and Health Act of 1970 with respect to any employer
of ten or fewer employees who is included within a category having
an occupational injury lost workday case rate, at the most precise
Standard Industrial Classification Code for which such data are
published, less than the national average rate as such rates are
most recently published by the Secretary, acting through the Bureau
of Labor Statistics, in accordance with section 24 of that Act (29
U.S.C. 673), except—
(1) to provide, as authorized by such Act, consultation,
technical assistance, educational and training services, and to
conduct surveys and studies;
(2) to conduct an inspection or investigation in response
to an employee complaint, to issue a citation for violations
found during such inspection, and to assess a penalty for violations which are not corrected within a reasonable abatement
period and for any willful violations found;
(3) to take any action authorized by such Act with respect
to imminent dangers;
(4) to take any action authorized by such Act with respect
to health hazards;
(5) to take any action authorized by such Act with respect
to a report of an employment accident which is fatal to one
or more employees or which results in hospitalization of two
or more employees, and to take any action pursuant to such
investigation authorized by such Act; and
(6) to take any action authorized by such Act with respect
to complaints of discrimination against employees for exercising
rights under such Act: Provided further, That the foregoing
proviso shall not apply to any person who is engaged in a
farming operation which does not maintain a temporary labor
camp and employs ten or fewer employees.
MINE SAFETY

AND

HEALTH ADMINISTRATION

SALARIES AND EXPENSES

For necessary expenses for the Mine Safety and Health
Administration, $197,810,000, including purchase and bestowal of
certificates and trophies in connection with mine rescue and firstaid work, and the hire of passenger motor vehicles; the Secretary
is authorized to accept lands, buildings, equipment, and other contributions from public and private sources and to prosecute projects
in cooperation with other agencies, Federal, State, or private; the
Mine Safety and Health Administration is authorized to promote
health and safety education and training in the mining community
through cooperative programs with States, industry, and safety
associations; and any funds available to the Department may be
used, with the approval of the Secretary, to provide for the costs
of mine rescue and survival operations in the event of a major
disaster: Provided, That none of the funds appropriated under this
paragraph shall be obligated or expended to carry out section 115
of the Federal Mine Safety and Health Act of 1977 or to carry
out that portion of section 104(g)(1) of such Act relating to the
enforcement of any training requirements, with respect to shell
dredging, or with respect to any sand, gravel, surface stone, surface
clay, colloidal phosphate, or surface limestone mine.

30 USC 962.

110 STAT. 3009–241

PUBLIC LAW 104–208—SEPT. 30, 1996
BUREAU

OF

LABOR STATISTICS

SALARIES AND EXPENSES

For necessary expenses for the Bureau of Labor Statistics,
including advances or reimbursements to State, Federal, and local
agencies and their employees for services rendered, $309,647,000,
of which $16,145,000 shall be for expenses of revising the Consumer
Price Index and shall remain available until September 30, 1998,
together with not to exceed $52,053,000, which may be expended
from the Employment Security Administration account in the Unemployment Trust Fund.
DEPARTMENTAL MANAGEMENT
SALARIES AND EXPENSES

33 USC 921 note.

For necessary expenses for Departmental Management, including the hire of three sedans, and including up to $4,358,000 for
the President’s Committee on Employment of People With Disabilities, $144,211,000; together with not to exceed $297,000, which
may be expended from the Employment Security Administration
account in the Unemployment Trust Fund: Provided, That no funds
made available by this Act may be used by the Solicitor of Labor
to participate in a review in any United States court of appeals
of any decision made by the Benefits Review Board under section
21 of the Longshore and Harbor Workers’ Compensation Act (33
U.S.C. 921) where such participation is precluded by the decision
of the United States Supreme Court in Director, Office of Workers’
Compensation Programs v. Newport News Shipbuilding, 115 S.
Ct. 1278 (1995): Provided further, That no funds made available
by this Act may be used by the Secretary of Labor to review
a decision under the Longshore and Harbor Workers’ Compensation
Act (33 U.S.C. 901 et seq.) that has been appealed and that has
been pending before the Benefits Review Board for more than
12 months: Provided further, That any such decision pending a
review by the Benefits Review Board for more than one year shall
be considered affirmed by the Benefits Review Board on that date,
and shall be considered the final order of the Board for purposes
of obtaining a review in the United States courts of appeals: Provided further, That these provisions shall not be applicable to the
review of any decision issued under the Black Lung Benefits Act
(30 U.S.C. 901 et seq.).
ASSISTANT SECRETARY FOR VETERANS EMPLOYMENT AND TRAINING

Not to exceed $181,949,000 may be derived from the Employment Security Administration account in the Unemployment Trust
Fund to carry out the provisions of 38 U.S.C. 4100–4110A and
4321–4327, and Public Law 103–353, and which shall be available
for obligation by the States through December 31, 1997.
OFFICE OF INSPECTOR GENERAL

For salaries and expenses of the Office of Inspector General
in carrying out the provisions of the Inspector General Act of
1978, as amended, $42,938,000, together with not to exceed
$3,543,000, which may be expended from the Employment Security
Administration account in the Unemployment Trust Fund.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–242

GENERAL PROVISIONS

SEC. 101. None of the funds appropriated in this title for
the Job Corps shall be used to pay the compensation of an individual, either as direct costs or any proration as an indirect cost,
at a rate in excess of $125,000.
(TRANSFER OF FUNDS)

SEC. 102. Not to exceed 1 percent of any discretionary funds
(pursuant to the Balanced Budget and Emergency Deficit Control
Act, as amended) which are appropriated for the current fiscal
year for the Department of Labor in this Act may be transferred
between appropriations, but no such appropriation shall be
increased by more than 3 percent by any such transfer: Provided,
That the Appropriations Committees of both Houses of Congress
are notified at least fifteen days in advance of any transfer.
SEC. 103. Funds shall be available for carrying out title IV–
B of the Job Training Partnership Act, notwithstanding section
427(c) of that Act, if a Job Corps center fails to meet national
performance standards established by the Secretary.
SEC. 104. Effective January 1, 1997, no funds appropriated
or otherwise made available to the Department of Labor in this
title shall be disbursed without the approval of the Department’s
Chief Financial Officer or his delegatee.
SEC. 105. Notwithstanding any other provision of law, the
Secretary of Labor may waive any of the requirements contained
in sections 4, 104, 105, 107, 108, 121, 164, 204, 253, 254, 264,
301, 311, 313, 314, and 315 of the Job Training Partnership Act
in order to assist States in improving State workforce development
systems, pursuant to a request submitted by a State that has
prior to the date of enactment of this Act executed a Memorandum
of Understanding with the United States requiring such State to
meet agreed upon outcomes.
This title may be cited as the ‘‘Department of Labor Appropriations Act, 1997’’.
TITLE II—DEPARTMENT OF HEALTH AND HUMAN
SERVICES
HEALTH RESOURCES

AND

SERVICES ADMINISTRATION

HEALTH RESOURCES AND SERVICES

For carrying out titles II, III, VII, VIII, X, XII, XVI, XIX,
and XXVI of the Public Health Service Act, section 427(a) of the
Federal Coal Mine Health and Safety Act, title V of the Social
Security Act, the Health Care Quality Improvement Act of 1986,
as amended, and the Native Hawaiian Health Care Act of 1988,
as amended, $3,405,019,000, of which $297,000 shall remain available until expended for interest subsidies on loan guarantees made
prior to fiscal year 1981 under part B of title VII of the Public
Health Service Act: Provided, That the Division of Federal Occupational Health may utilize personal services contracting to employ
professional management/administrative and occupational health
professionals: Provided further, That of the funds made available
under this heading, $828,000 shall be available until expended
for facilities renovations at the Gillis W. Long Hansen’s Disease

Department of
Health and
Human Services
Appropriations
Act, 1997.

110 STAT. 3009–243

PUBLIC LAW 104–208—SEPT. 30, 1996

Center: Provided further, That in addition to fees authorized by
section 427(b) of the Health Care Quality Improvement Act of
1986, fees shall be collected for the full disclosure of information
under the Act sufficient to recover the full costs of operating the
National Practitioner Data Bank, and shall remain available until
expended to carry out that Act: Provided further, That no more
than $5,000,000 is available for carrying out the provisions of
Public Law 104–73: Provided further, That of the funds made available under this heading, $198,452,000 shall be for the program
under title X of the Public Health Service Act to provide for voluntary family planning projects: Provided further, That amounts
provided to said projects under such title shall not be expended
for abortions, that all pregnancy counseling shall be nondirective,
and that such amounts shall not be expended for any activity
(including the publication or distribution of literature) that in any
way tends to promote public support or opposition to any legislative
proposal or candidate for public office: Provided further, That
$167,000,000 shall be for State AIDS Drug Assistance Programs
authorized by section 2616 of the Public Health Service Act and
shall be distributed to States as authorized by section 2618(b)(2)
of such Act: Provided further, That notwithstanding any other provision of law, funds made available under this heading may be
used to continue operating the Council on Graduate Medical Education established by section 301 of Public Law 102–408: Provided
further, That, of the funds made available under this heading,
not more than $8,000,000 shall be made available and shall remain
available until expended for loan guarantees for loans made by
non-Federal lenders for the construction, renovation, and modernization of medical facilities that are owned and operated by
health centers funded under part A of title XVI of the Public
Health Service Act as amended, and, subject to authorization, for
loans made to health centers for the costs of developing and operating managed care networks or plans, and that such funds be available to subsidize guarantees of total loan principal in an amount
not to exceed $80,000,000: Provided further, That notwithstanding
section 502(a)(1) of the Social Security Act, not to exceed
$103,609,000 is available for carrying out special projects of regional
and national significance pursuant to section 501(a)(2) of such Act.
MEDICAL FACILITIES GUARANTEE AND LOAN FUND
FEDERAL INTEREST SUBSIDIES FOR MEDICAL FACILITIES

For carrying out subsections (d) and (e) of section 1602 of
the Public Health Service Act, $7,000,000, together with any
amounts received by the Secretary in connection with loans and
loan guarantees under title VI of the Public Health Service Act,
to be available without fiscal year limitation for the payment of
interest subsidies. During the fiscal year, no commitments for direct
loans or loan guarantees shall be made.
HEALTH EDUCATION ASSISTANCE LOANS PROGRAM

For the cost of guaranteed loans, such sums as may be necessary to carry out the purpose of the program, as authorized
by title VII of the Public Health Service Act, as amended: Provided,
That such costs, including the cost of modifying such loans, shall
be as defined in section 502 of the Congressional Budget Act of

PUBLIC LAW 104–208—SEPT. 30, 1996
1974: Provided further, That these funds are available to
gross obligations for the total loan principal any part
is to be guaranteed at not to exceed $140,000,000. In
for administrative expenses to carry out the guaranteed
gram, $2,688,000.

110 STAT. 3009–244
subsidize
of which
addition,
loan pro-

VACCINE INJURY COMPENSATION PROGRAM TRUST FUND

For payments from the Vaccine Injury Compensation Program
Trust Fund, such sums as may be necessary for claims associated
with vaccine-related injury or death with respect to vaccines
administered after September 30, 1988, pursuant to subtitle 2 of
title XXI of the Public Health Service Act, to remain available
until expended: Provided, That for necessary administrative
expenses, not to exceed $3,000,000 shall be available from the
Trust Fund to the Secretary of Health and Human Services.
VACCINE INJURY COMPENSATION

For payment of claims resolved by the United States Court
of Federal Claims related to the administration of vaccines before
October 1, 1988, $110,000,000, to remain available until expended.
CENTERS

FOR

DISEASE CONTROL

AND

PREVENTION

DISEASE CONTROL, RESEARCH, AND TRAINING

To carry out titles II, III, VII, XI, XV, XVII, and XIX of the
Public Health Service Act, sections 101, 102, 103, 201, 202, 203,
301, and 501 of the Federal Mine Safety and Health Act of 1977,
and sections 20, 21 and 22 of the Occupational Safety and Health
Act of 1970, title IV of the Immigration and Nationality Act and
section 501 of the Refugee Education Assistance Act of 1980; including insurance of official motor vehicles in foreign countries; and
hire, maintenance, and operation of aircraft, $2,262,698,000, of
which $30,553,000 shall remain available until expended for equipment and construction and renovation of facilities, and of which
$32,000,000 shall remain available until September 30, 1998 for
mine safety and health activities, and in addition, such sums as
may be derived from authorized user fees, which shall be credited
to this account: Provided, That in addition to amounts provided
herein, up to $48,400,000 shall be available from amounts available
under section 241 of the Public Health Service Act, to carry out
the National Center for Health Statistics surveys: Provided further,
That none of the funds made available for injury prevention and
control at the Centers for Disease Control and Prevention may
be used to advocate or promote gun control: Provided further, That
the Director may redirect the total amount made available under
authority of Public Law 101–502, section 3, dated November 3,
1990, to activities the Director may so designate: Provided further,
That the Congress is to be notified promptly of any such transfer:
Provided further, That the functions described in clause (1) of
the first proviso under the subheading ‘‘mines and minerals’’ under
the heading ‘‘Bureau of Mines’’ in the text of title I of the Department of the Interior and Related Agencies Appropriations Act,
1996, as enacted by section 101 (c) of the Omnibus Consolidated
Rescissions and Appropriations Act of 1996 (Public Law 104–134),
are hereby transferred to, and vested in, the Secretary of Health

30 USC 1 note.

110 STAT. 3009–245

PUBLIC LAW 104–208—SEPT. 30, 1996

and Human Services, subject to section 1531 of title 31, United
States Code: Provided further, That of the amount provided,
$23,000,000 is designated by Congress as an emergency requirement
pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and
Emergency Deficit Control Act of 1985, as amended.
In addition, $41,000,000, to be derived from the Violent Crime
Reduction Trust Fund, for carrying out sections 40151 and 40261
of Public Law 103–322.
NATIONAL INSTITUTES

OF

HEALTH

NATIONAL CANCER INSTITUTE

For carrying out section 301 and title IV of the Public Health
Service Act with respect to cancer, $2,382,532,000.
NATIONAL HEART, LUNG, AND BLOOD INSTITUTE

For carrying out section 301 and title IV of the Public Health
Service Act with respect to cardiovascular, lung, and blood diseases,
and blood and blood products, $1,433,001,000.
NATIONAL INSTITUTE OF DENTAL RESEARCH

For carrying out section 301 and title IV of the Public Health
Service Act with respect to dental disease, $195,997,000.
NATIONAL INSTITUTE OF DIABETES AND DIGESTIVE AND KIDNEY
DISEASES

For carrying out section 301 and title IV of the Public Health
Service Act with respect to diabetes and digestive and kidney disease, $815,982,000.
NATIONAL INSTITUTE OF NEUROLOGICAL DISORDERS AND STROKE

For carrying out section 301 and title IV of the Public Health
Service Act with respect to neurological disorders and stroke,
$726,746,000.
NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES

For carrying out section 301 and title IV of the Public Health
Service Act with respect to allergy and infectious diseases,
$1,257,234,000.
NATIONAL INSTITUTE OF GENERAL MEDICAL SCIENCES

For carrying out section 301 and title IV of the Public Health
Service Act with respect to general medical sciences, $998,470,000.
NATIONAL INSTITUTE OF CHILD HEALTH AND HUMAN DEVELOPMENT

For carrying out section 301 and title IV of the Public Health
Service Act with respect to child health and human development,
$631,703,000.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–246

NATIONAL EYE INSTITUTE

For carrying out section 301 and title IV of the Public Health
Service Act with respect to eye diseases and visual disorders,
$332,735,000.
NATIONAL INSTITUTE OF ENVIRONMENTAL HEALTH SCIENCES

For carrying out sections 301 and 311 and title IV of the
Public Health Service Act with respect to environmental health
sciences, $308,819,000.
NATIONAL INSTITUTE ON AGING

For carrying out section 301 and title IV of the Public Health
Service Act with respect to aging, $486,047,000.
NATIONAL INSTITUTE OF ARTHRITIS AND MUSCULOSKELETAL AND SKIN
DISEASES

For carrying out section 301 and title IV of the Public Health
Service Act with respect to arthritis and musculoskeletal and skin
diseases, $257,111,000.
NATIONAL INSTITUTE ON DEAFNESS AND OTHER COMMUNICATION
DISORDERS

For carrying out section 301 and title IV of the Public Health
Service Act with respect to deafness and other communication disorders, $188,422,000.
NATIONAL INSTITUTE OF NURSING RESEARCH

For carrying out section 301 and title IV of the Public Health
Service Act with respect to nursing research, $59,743,000.
NATIONAL INSTITUTE ON ALCOHOL ABUSE AND ALCOHOLISM

For carrying out section 301 and title IV of the Public Health
Service Act with respect to alcohol abuse and alcoholism,
$212,004,000.
NATIONAL INSTITUTE ON DRUG ABUSE

For carrying out section 301 and title IV of the Public Health
Service Act with respect to drug abuse, $489,375,000.
NATIONAL INSTITUTE OF MENTAL HEALTH

For carrying out section 301 and title IV of the Public Health
Service Act with respect to mental health, $701,585,000.
NATIONAL CENTER FOR RESEARCH RESOURCES

For carrying out section 301 and title IV of the Public Health
Service Act with respect to research resources and general research
support grants, $415,145,000: Provided, That none of these funds
shall be used to pay recipients of the general research support
grants program any amount for indirect expenses in connection
with such grants: Provided further, That $20,000,000 shall be for
extramural facilities construction grants.

110 STAT. 3009–247

PUBLIC LAW 104–208—SEPT. 30, 1996
NATIONAL CENTER FOR HUMAN GENOME RESEARCH

For carrying out section 301 and title IV of the Public Health
Service Act with respect to human genome research, $189,657,000.
JOHN E. FOGARTY INTERNATIONAL CENTER

For carrying out the activities at the John E. Fogarty International Center, $26,586,000.
NATIONAL LIBRARY OF MEDICINE

For carrying out section 301 and title IV of the Public Health
Service Act with respect to health information communications,
$151,103,000, of which $4,000,000 shall be available until expended
for improvement of information systems: Provided, That in fiscal
year 1997, the Library may enter into personal services contracts
for the provision of services in facilities owned, operated, or constructed under the jurisdiction of the National Institutes of Health.
OFFICE OF THE DIRECTOR
(INCLUDING TRANSFER OF FUNDS)

For carrying out the responsibilities of the Office of the Director,
National Institutes of Health, $287,206,000, of which $35,589,000
shall be for the Office of AIDS Research: Provided, That funding
shall be available for the purchase of not to exceed five passenger
motor vehicles for replacement only: Provided further, That the
Director may direct up to 1 percent of the total amount made
available in this Act to all National Institutes of Health appropriations to activities the Director may so designate: Provided further,
That no such appropriation shall be increased or decreased by
more than 1 percent by any such transfers and that the Congress
is promptly notified of the transfer: Provided further, That NIH
is authorized to collect third party payments for the cost of clinical
services that are incurred in National Institutes of Health research
facilities and that such payments shall be credited to the National
Institutes of Health Management Fund: Provided further, That
all funds credited to the NIH Management Fund shall remain
available for one fiscal year after the fiscal year in which they
are deposited: Provided further, That up to $200,000 shall be available to carry out section 499 of the Public Health Service Act.
BUILDINGS AND FACILITIES

For the study of, construction of, and acquisition of equipment
for, facilities of or used by the National Institutes of Health, including the acquisition of real property, $200,000,000, to remain available until expended, of which $90,000,000 shall be for the clinical
research center: Provided, That, notwithstanding any other provision of law, a single contract or related contracts for the development and construction of the clinical research center may be
employed which collectively include the full scope of the project:
Provided further, That the solicitation and contract shall contain
the clause ‘‘availability of funds’’ found at 48 CFR 52.232–18.

PUBLIC LAW 104–208—SEPT. 30, 1996
SUBSTANCE ABUSE

AND

110 STAT. 3009–248

MENTAL HEALTH SERVICES ADMINISTRATION

SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES

For carrying out titles V and XIX of the Public Health Service
Act with respect to substance abuse and mental health services,
the Protection and Advocacy for Mentally Ill Individuals Act of
1986, section 30401 of Public Law 103–322 and section 301 of
the Public Health Service Act with respect to program management,
$2,134,743,000, of which $5,000,000 shall be for grants to rural
and Native American projects and $12,800,000 shall be for activities
authorized by section 30401 of Public Law 103–322.
RETIREMENT PAY AND MEDICAL BENEFITS FOR COMMISSIONED
OFFICERS

For retirement pay and medical benefits of Public Health Service Commissioned Officers as authorized by law, and for payments
under the Retired Serviceman’s Family Protection Plan and Survivor Benefit Plan and for medical care of dependents and retired
personnel under the Dependents’ Medical Care Act (10 U.S.C. ch.
55), and for payments pursuant to section 229(b) of the Social
Security Act (42 U.S.C. 429(b)), such amounts as may be required
during the current fiscal year.
AGENCY

FOR

HEALTH CARE POLICY

AND

RESEARCH

HEALTH CARE POLICY AND RESEARCH

For carrying out titles III and IX of the Public Health Service
Act, and part A of title XI of the Social Security Act, $96,175,000;
in addition, amounts received from Freedom of Information Act
fees, reimbursable and interagency agreements, and the sale of
data tapes shall be credited to this appropriation and shall remain
available until expended: Provided, That the amount made available
pursuant to section 926(b) of the Public Health Service Act shall
not exceed $47,412,000.
HEALTH CARE FINANCING ADMINISTRATION
GRANTS TO STATES FOR MEDICAID

For carrying out, except as otherwise provided, titles XI and
XIX of the Social Security Act, $75,056,618,000, to remain available
until expended.
For making, after May 31, 1997, payments to States under
title XIX of the Social Security Act for the last quarter of fiscal
year 1997 for unanticipated costs, incurred for the current fiscal
year, such sums as may be necessary.
For making payments to States under title XIX of the Social
Security Act for the first quarter of fiscal year 1998,
$27,988,993,000, to remain available until expended.
Payment under title XIX may be made for any quarter with
respect to a State plan or plan amendment in effect during such
quarter, if submitted in or prior to such quarter and approved
in that or any subsequent quarter.

110 STAT. 3009–249

PUBLIC LAW 104–208—SEPT. 30, 1996
PAYMENTS TO HEALTH CARE TRUST FUNDS

For payment to the Federal Hospital Insurance and the Federal
Supplementary Medical Insurance Trust Funds, as provided under
sections 217(g) and 1844 of the Social Security Act, sections 103(c)
and 111(d) of the Social Security Amendments of 1965, section
278(d) of Public Law 97–248, and for administrative expenses
incurred pursuant to section 201(g) of the Social Security Act,
$60,079,000,000.
PROGRAM MANAGEMENT

For carrying out, except as otherwise provided, titles XI, XVIII,
and XIX of the Social Security Act, title XIII of the Public Health
Service Act, and the Clinical Laboratory Improvement Amendments
of 1988, not to exceed $1,735,125,000 to be transferred from the
Federal Hospital Insurance and the Federal Supplementary Medical
Insurance Trust Funds, as authorized by section 201(g) of the
Social Security Act; together with all funds collected in accordance
with section 353 of the Public Health Service Act, the latter funds
to remain available until expended, together with such sums as
may be collected from authorized user fees and the sale of data,
which shall remain available until expended: Provided, That all
funds derived in accordance with 31 U.S.C. 9701 from organizations
established under title XIII of the Public Health Service Act are
to be credited to and available for carrying out the purposes of
this appropriation.
HEALTH MAINTENANCE ORGANIZATION LOAN AND LOAN GUARANTEE
FUND

For carrying out subsections (d) and (e) of section 1308 of
the Public Health Service Act, any amounts received by the Secretary in connection with loans and loan guarantees under title
XIII of the Public Health Service Act, to be available without
fiscal year limitation for the payment of outstanding obligations.
During fiscal year 1997, no commitments for direct loans or loan
guarantees shall be made.
ADMINISTRATION

FOR

CHILDREN

AND

FAMILIES

FAMILY SUPPORT PAYMENTS TO STATES

For making payments of such sums as necessary to each State
for carrying out the program of Aid to Families with Dependent
Children under title IV–A of the Social Security Act in fiscal year
1997 before the effective date of the program of Temporary Assistance to Needy Families (TANF) with respect to such State: Provided,
That the sum of the amounts available to a State with respect
to expenditures under such title IV–A in fiscal year 1997 under
this appropriation and under such title IV–A as amended by the
Personal Responsibility and Work Opportunity Reconciliation Act
of 1996 shall not exceed the limitations under section 116(b) of
such Act.
For making payments to States for carrying out title IV–A
(other than section 402(g)(6)) of the Social Security Act in calendar
quarters prior to October 1, 1996, such sums as may be necessary.
For making payments to States or other non-Federal entities
under titles I, IV–D, X, XI, XIV, and XVI of the Social Security

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–250

Act and the Act of July 5, 1960 (24 U.S.C. ch. 9), $2,158,000,000
to remain available until expended.
For making, after May 31 of the current fiscal year, payments
to States or other non-Federal entities under titles I, IV–D, X,
XI, XIV, and XVI of the Social Security Act, for the last three
months of the current year for unanticipated costs, incurred for
the current fiscal year, such sums as may be necessary.
For making payments to States or other non-Federal entities
under titles I, IV–D, X, XI, XIV, and XVI of the Social Security
Act and the Act of July 5, 1960 (24 U.S.C. ch. 9) for the first
quarter of fiscal year 1998, $607,000,000, to remain available until
expended.
JOB OPPORTUNITIES AND BASIC SKILLS

For carrying out aid to families with dependent children work
programs, as authorized by part F of title IV of the Social Security
Act, $1,000,000,000.
LOW INCOME HOME ENERGY ASSISTANCE

For making payments under title XXVI of the Omnibus Budget
Reconciliation Act of 1981, $1,000,000,000.
For making payments under title XXVI of the Omnibus Budget
Reconciliation Act of 1981, $1,000,000,000, to be available for obligation in the period October 1, 1997 through September 30, 1998.
REFUGEE AND ENTRANT ASSISTANCE

For making payments for refugee and entrant assistance activities authorized by title IV of the Immigration and Nationality
Act and section 501 of the Refugee Education Assistance Act of
1980 (Public Law 96–422), $412,076,000: Provided, That funds
appropriated pursuant to section 414(a) of the Immigration and
Nationality Act under Public Law 103–333 for fiscal year 1995
shall be available for the costs of assistance provided and other
activities conducted in such year and in fiscal years 1996 and
1997.
CHILD CARE AND DEVELOPMENT BLOCK GRANT
(INCLUDING TRANSFER OF FUNDS)

For carrying out sections 658A through 658R of the Omnibus
Budget Reconciliation Act of 1981 (The Child Care and Development
Block Grant Act of 1990), $956,120,000, of which $937,000,000
shall become available on October 1, 1997 and shall remain available through September 30, 1998: Provided, That $19,120,000 shall
become available for obligation on October 1, 1996 for child care
resource and referral and school-aged child care activities, of which
$6,120,000 shall be derived from an amount that shall be transferred from the amount appropriated under section 452(j) of the
Social Security Act (42 U.S.C. 652(j)) for fiscal year 1996 and
remaining available for expenditure.
SOCIAL SERVICES BLOCK GRANT

For making grants to States pursuant to section 2002 of the
Social Security Act, $2,500,000,000: Provided, That notwithstanding
section 2003(c) of such Act, as amended, the amount specified

110 STAT. 3009–251

PUBLIC LAW 104–208—SEPT. 30, 1996

for allocation under such section for fiscal year 1997 shall be
$2,500,000,000.
CHILDREN AND FAMILIES SERVICES PROGRAMS
(INCLUDING RESCISSIONS)

For carrying out, except as otherwise provided, the Runaway
and Homeless Youth Act, the Developmental Disabilities Assistance
and Bill of Rights Act, the Head Start Act, the Child Abuse Prevention and Treatment Act, the Temporary Child Care for Children
with Disabilities and Crisis Nurseries Act of 1986, section 429A,
part B of title IV of the Social Security Act, section 413 of the
Social Security Act, the Family Violence Prevention and Services
Act, the Native American Programs Act of 1974, title II of Public
Law 95–266 (adoption opportunities), the Abandoned Infants Assistance Act of 1988, and part B(1) of title IV of the Social Security
Act; for making payments under the Community Services Block
Grant Act; and for necessary administrative expenses to carry out
said Acts and titles I, IV, X, XI, XIV, XVI, and XX of the Social
Security Act, the Act of July 5, 1960 (24 U.S.C. ch. 9), the Omnibus
Budget Reconciliation Act of 1981, title IV of the Immigration
and Nationality Act, section 501 of the Refugee Education Assistance Act of 1980, and section 126 and titles IV and V of Public
Law 100–485, $5,363,569,000, of which $536,432,000 shall be for
making payments under the Community Services Block Grant Act:
Provided, That to the extent Community Services Block Grant
funds are distributed as grant funds by a State to an eligible
entity as provided under the Act, and have not been expended
by such entity, they shall remain with such entity for carryover
into the next fiscal year for expenditure by such entity consistent
with program purposes: Provided further, That of the amount appropriated for fiscal year 1997 under section 672(a) of the Community
Services Block Grant Act, the Secretary shall use up to one percent
of the funds available to correct allocation errors that occurred
in fiscal year 1995 and fiscal year 1996 to ensure that the minimum
allotment to each State for each of fiscal years 1995 and 1996
would be $2,222,460: Provided further, That no more than onehalf of one percent of the funds available under section 672(a)
shall be used for the purposes of section 674(a) of the Community
Services Block Grant Act.
In addition, $20,000,000, to be derived from the Violent Crime
Reduction Trust Fund, for carrying out sections 40155, 40211 and
40241 of Public Law 103–322.
Funds appropriated for fiscal year 1996 and fiscal year 1997
under section 429A(e), part B of title IV of the Social Security
Act shall be reduced by $6,000,000 in each such year.
Funds appropriated for fiscal year 1997 under section 413(h)(1)
of the Social Security Act shall be reduced by $15,000,000.
FAMILY PRESERVATION AND SUPPORT

For carrying out section 430 of the Social Security Act,
$240,000,000.
PAYMENTS TO STATES FOR FOSTER CARE AND ADOPTION ASSISTANCE

For making payments to States or other non-Federal entities,
under title IV–E of the Social Security Act, $4,445,031,000.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–252

For making payments to States or other non-Federal entities,
under title IV–E of the Social Security Act, for the first quarter
of fiscal year 1998, $1,111,000,000.
ADMINISTRATION

ON

AGING

AGING SERVICES PROGRAMS

For carrying out, to the extent not otherwise provided, the
Older Americans Act of 1965, as amended, $830,168,000: Provided,
That notwithstanding section 308(b)(1) of such Act, the amounts
available to each State for administration of the State plan under
title III of such Act shall be reduced not more than 5 percent
below the amount that was available to such State for such purpose
for fiscal year 1995: Provided further, That in considering grant
applications for nutrition services for elder Indian recipients, the
Assistant Secretary shall provide maximum flexibility to applicants
who seek to take into account subsistence, local customs and other
characteristics that are appropriate to the unique cultural, regional
and geographic needs of the American Indian, Alaskan and Hawaiian native communities to be served.
OFFICE

OF THE

SECRETARY

GENERAL DEPARTMENTAL MANAGEMENT

For necessary expenses, not otherwise provided, for general
departmental management, including hire of six sedans, and for
carrying out titles III, XVII, and XX of the Public Health Service
Act, $174,523,000, together with $5,851,000, to be transferred and
expended as authorized by section 201(g)(1) of the Social Security
Act from the Hospital Insurance Trust Fund and the Supplemental
Medical Insurance Trust Fund: Provided, That of the funds made
available under this heading for carrying out title XVII of the
Public Health Service Act, $11,500,000 shall be available until
expended for extramural construction: Provided further, That notwithstanding section 2010 (b) and (c) under title XX of the Public
Health Service Act, as amended, of the funds made available under
this heading, $10,879,000 shall be for activities specified under
section 2003(b)(2) of title XX of the Public Health Service Act,
as amended, and of which $9,011,000 shall be for prevention grants
under section 510(b)(2) of title V of the Social Security Act, as
amended: Provided further, That of the amount provided, $5,775,000
is designated by Congress as an emergency requirement pursuant
to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended.
OFFICE OF INSPECTOR GENERAL

For expenses necessary for the Office of Inspector General
in carrying out the provisions of the Inspector General Act of
1978, as amended, $32,999,000, together with any funds, to remain
available until expended, that represent the equitable share from
the forfeiture of property in investigations in which the Office
of Inspector General participated, and which are transferred to
the Office of Inspector General by the Department of Justice, the
Department of the Treasury, or the United States Postal Service.

110 STAT. 3009–253

PUBLIC LAW 104–208—SEPT. 30, 1996
OFFICE FOR CIVIL RIGHTS

For expenses necessary for the Office for Civil Rights,
$16,216,000, together with not to exceed $3,314,000, to be transferred and expended as authorized by section 201(g)(1) of the Social
Security Act from the Hospital Insurance Trust Fund and the
Supplemental Medical Insurance Trust Fund.
POLICY RESEARCH

For carrying out, to the extent not otherwise provided, research
studies under section 1110 of the Social Security Act and section
301(l) of Public Law 104–191, $18,500,000: Provided, That
$9,500,000, to remain available until September 30, 1998, shall
be for carrying out section 301(l) of Public Law 104–191.
GENERAL PROVISIONS

SEC. 201. Funds appropriated in this title shall be available
for not to exceed $37,000 for official reception and representation
expenses when specifically approved by the Secretary.
SEC. 202. The Secretary shall make available through assignment not more than 60 employees of the Public Health Service
to assist in child survival activities and to work in AIDS programs
through and with funds provided by the Agency for International
Development, the United Nations International Children’s Emergency Fund or the World Health Organization.
SEC. 203. None of the funds appropriated under this Act may
be used to implement section 399L(b) of the Public Health Service
Act or section 1503 of the National Institutes of Health Revitalization Act of 1993, Public Law 103–43.
SEC. 204. None of the funds made available by this Act may
be used to withhold payment to any State under the Child Abuse
Prevention and Treatment Act by reason of a determination that
the State is not in compliance with section 1340.2(d)(2)(ii) of title
45 of the Code of Federal Regulations. This provision expires upon
the date of enactment of the reauthorization of the Child Abuse
Prevention and Treatment Act.
SEC. 205. None of the funds appropriated in this Act for the
National Institutes of Health and the Substance Abuse and Mental
Health Services Administration shall be used to pay the salary
of an individual, through a grant or other extramural mechanism,
at a rate in excess of $125,000 per year.
SEC. 206. None of the funds appropriated in this Act may
be expended pursuant to section 241 of the Public Health Service
Act, except for funds specifically provided for in this Act, or for
other taps and assessments made by any office located in the
Department of Health and Human Services, prior to the Secretary’s
preparation and submission of a report to the Committee on Appropriations of the Senate and of the House detailing the planned
uses of such funds.
(TRANSFER OF FUNDS)

SEC. 207. Of the funds appropriated or otherwise made available for the Department of Health and Human Services, General
Departmental Management, for fiscal year 1997, the Secretary of
Health and Human Services shall transfer to the Office of the
Inspector General such sums as may be necessary for any expenses

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–254

with respect to the provision of security protection for the Secretary
of Health and Human Services.
SEC. 208. None of the funds appropriated in this Act may
be obligated or expended for the Federal Council on Aging under
the Older Americans Act or the Advisory Board on Child Abuse
and Neglect under the Child Abuse Prevention and Treatment
Act.
(TRANSFER OF FUNDS)

SEC. 209. Not to exceed 1 percent of any discretionary funds
(pursuant to the Balanced Budget and Emergency Deficit Control
Act, as amended) which are appropriated for the current fiscal
year for the Department of Health and Human Services in this
Act may be transferred between appropriations, but no such appropriation shall be increased by more than 3 percent by any such
transfer: Provided, That the Appropriations Committees of both
Houses of Congress are notified at least fifteen days in advance
of any transfer.
(TRANSFER OF FUNDS)

SEC. 210. The Director of the National Institutes of Health,
jointly with the Director of the Office of AIDS Research, may
transfer up to 3 percent among institutes, centers, and divisions
from the total amounts identified by these two Directors as funding
for research pertaining to the human immunodeficiency virus: Provided, That the Congress is promptly notified of the transfer.
(TRANSFER OF FUNDS)

SEC. 211. Of the amounts made available in this Act for the
National Institutes of Health, the amount for research related to
the human immunodeficiency virus, as jointly determined by the
Director of NIH and the Director of the Office of AIDS Research,
shall be made available to the ‘‘Office of AIDS Research’’ account.
The Director of the Office of AIDS Research shall transfer from
such account amounts necessary to carry out section 2353(d)(3)
of the Public Health Service Act.
SEC. 212. Not later than January 1, 1997, the Administrator
of the Health Care Financing Administration, with the advice and
technical assistance of the Agency for Health Care Policy and
Research, shall transmit to the appropriate committees of the Congress a report including—
(1) a review of all available studies and research data on
the treatment of end-stage emphysema and chronic obstructive
pulmonary disease by both unilateral and bilateral lung volume
reduction surgery, involving both invasive and noninvasive surgery
and supplemental surgical methods, including laser applications;
and
(2) a recommendation, based on such review, as to the appropriateness of Medicare coverage of such procedures and the conditions, if necessary, that facilities and physicians should be required
to meet, to ensure the efficacy of such procedures, as more detailed
clinical studies are conducted.
SEC. 213. Section 304(a)(1) of the Family Violence Prevention
and Services Act (42 U.S.C. 10403(a)(1)) is amended by striking
‘‘$200,000’’ and inserting ‘‘$400,000’’.

110 STAT. 3009–255

42 USC 652, 653.
42 USC 652 note.

Department of
Education
Appropriations
Act, 1997.

PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 214. The new clinical research center at the National
Institutes of Health is hereby named the Mark O. Hatfield Clinical
Research Center.
SEC. 215. Section 345 of Public Law 104–193 is amended by
replacing ‘‘section 457(a)’’ wherever it appears with ‘‘a plan approved
under this part’’. Amounts available under such section shall be
calculated as though such section were effective October 1, 1995.
This title may be cited as the ‘‘Department of Health and
Human Services Appropriations Act, 1997’’.
TITLE III—DEPARTMENT OF EDUCATION
EDUCATION REFORM

For carrying out activities authorized by titles III and IV of
the Goals 2000: Educate America Act and the School-to-Work
Opportunities Act, $691,000,000, of which $476,000,000 for the
Goals 2000: Educate America Act and $200,000,000 for the Schoolto-Work Opportunities Act shall become available on July 1, 1997,
and remain available through September 30, 1998: Provided, That
none of the funds appropriated under this heading shall be obligated
or expended to carry out section 304(a)(2)(A) of the Goals 2000:
Educate America Act.
EDUCATION FOR THE DISADVANTAGED

For carrying out title I of the Elementary and Secondary Education Act of 1965, and section 418A of the Higher Education
Act, $7,698,469,000, of which $6,380,114,000 shall become available
on July 1, 1997, and shall remain available through September
30, 1998, and of which $1,298,386,000 shall become available on
October 1, 1997 and shall remain available through September
30, 1998, for academic year 1997–1998: Provided, That
$6,194,850,000 shall be available for basic grants under section
1124: Provided further, That up to $3,500,000 of these funds shall
be available to the Secretary on October 1, 1996, to obtain updated
local-educational-agency-level census poverty data from the Bureau
of the Census: Provided further, That $999,249,000 shall be available for concentration grants under section 1124(A) and $7,000,000
shall be available for evaluations under section 1501.
IMPACT AID

For carrying out programs of financial assistance to federally
affected schools authorized by title VIII of the Elementary and
Secondary Education Act of 1965, $730,000,000, of which
$615,500,000 shall be for basic support payments under section
8003(b), $40,000,000 shall be for payments for children with disabilities under section 8003(d), $52,000,000, to remain available until
expended, shall be for payments under section 8003(f), $5,000,000
shall be for construction under section 8007, and $17,500,000 shall
be for Federal property payments under section 8002.
SCHOOL IMPROVEMENT PROGRAMS

For carrying out school improvement activities authorized by
titles II, IV–A–1, V–A and B, VI, IX, X and XIII of the Elementary
and Secondary Education Act of 1965; the Stewart B. McKinney
Homeless Assistance Act; and the Civil Rights Act of 1964;

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–256

$1,425,631,000, of which $1,202,478,000 shall become available on
July 1, 1997, and remain available through September 30, 1998:
Provided, That of the amount appropriated, $310,000,000 shall be
for Eisenhower professional development State grants under title
II–B and $310,000,000 shall be for innovative education program
strategies State grants under title VI–A.
BILINGUAL AND IMMIGRANT EDUCATION

For carrying out, to the extent not otherwise provided, bilingual,
foreign language and immigrant education activities authorized
by parts A and C and section 7203 of title VII of the Elementary
and Secondary Education Act, without regard to section 7103(b),
$261,700,000, of which $100,000,000 shall be for immigrant education programs authorized by part C: Provided, That State educational agencies may use all, or any part of, their part C allocation
for competitive grants to local educational agencies: Provided further, That the Department of Education should only support instructional programs which ensure that students completely master English in a timely fashion (a period of three to five years) while
meeting rigorous achievement standards in the academic content
areas.
SPECIAL EDUCATION

For carrying out parts B, C, D, E, F, G, and H and section
610(j)(2)(C) of the Individuals with Disabilities Education Act,
$4,036,000,000, of which $3,783,685,000 shall become available for
obligation on July 1, 1997, and shall remain available through
September 30, 1998: Provided, That the Republic of the Marshall
Islands, the Federated States of Micronesia, and the Republic of
Palau shall continue to be eligible to receive funds under the
Individuals with Disabilities Education Act consistent with the
provisions of Public Law 104–134: Provided further, That the entities that received competitive awards for direct services to children
under section 611 of the Individuals with Disabilities Education
Act in accordance with the competition required in Public Law
104–134 shall continue to be funded, without competition, in the
same amounts as under Public Law 104–134.
REHABILITATION SERVICES AND DISABILITY RESEARCH

For carrying out, to the extent not otherwise provided, the
Rehabilitation Act of 1973, the Technology-Related Assistance for
Individuals with Disabilities Act, and the Helen Keller National
Center Act, as amended, $2,509,447,000.
SPECIAL INSTITUTIONS

FOR

PERSONS WITH DISABILITIES

AMERICAN PRINTING HOUSE FOR THE BLIND

For carrying out the Act of March 3, 1879, as amended (20
U.S.C. 101 et seq.), $6,680,000.
NATIONAL TECHNICAL INSTITUTE FOR THE DEAF

For the National Technical Institute for the Deaf under titles
I and II of the Education of the Deaf Act of 1986 (20 U.S.C.

110 STAT. 3009–257

PUBLIC LAW 104–208—SEPT. 30, 1996

4301 et seq.), $43,041,000: Provided, That from the amount available, the Institute may at its discretion use funds for the endowment
program as authorized under section 207.
GALLAUDET UNIVERSITY

For the Kendall Demonstration Elementary School, the Model
Secondary School for the Deaf, and the partial support of Gallaudet
University under titles I and II of the Education of the Deaf
Act of 1986 (20 U.S.C. 4301 et seq.), $79,182,000: Provided, That
from the amount available, the University may at its discretion
use funds for the endowment program as authorized under section
207.
VOCATIONAL AND ADULT EDUCATION

For carrying out, to the extent not otherwise provided, the
Carl D. Perkins Vocational and Applied Technology Education Act,
the Adult Education Act, and the National Literacy Act of 1991,
$1,486,531,000, of which $4,500,000 shall be for the National
Institute for Literacy; and of which $1,483,612,000 shall become
available on July 1, 1997 and shall remain available through
September 30, 1998: Provided, That, of the amounts made available
for title II of the Carl D. Perkins Vocational and Applied Technology
Education Act, $4,500,000 shall be used by the Secretary for national programs under title IV, without regard to section 451: Provided further, That, in addition, the Secretary may reserve up
to $9,000,000 under section 101(a)(1)(A) of the Carl D. Perkins
Vocational and Applied Technology Education Act, without regard
to section 451: Provided further, That the Secretary may reserve
up to $5,000,000 under section 313(d) of the Adult Education Act
for activities carried out under section 383 of that Act: Provided
further, That no funds shall be awarded to a State Council under
section 112(f) of the Carl D. Perkins Vocational and Applied Technology Education Act, and no State shall be required to operate
such a Council.
STUDENT FINANCIAL ASSISTANCE

20 USC 1070a
note.

For carrying out subparts 1, 3, and 4 of part A, part C and
part E of title IV of the Higher Education Act of 1965, as amended,
$7,560,407,000, which shall remain available through September
30, 1998.
The maximum Pell Grant for which a student shall be eligible
during award year 1997–1998 shall be $2,700: Provided, That notwithstanding section 401(g) of the Act, if the Secretary determines,
prior to publication of the payment schedule for such award year,
that the amount included within this appropriation for Pell Grant
awards in such award year, and any funds available from the
fiscal year 1996 appropriation for Pell Grant awards, are insufficient
to satisfy fully all such awards for which students are eligible,
as calculated under section 401(b) of the Act, the amount paid
for each such award shall be reduced by either a fixed or variable
percentage, or by a fixed dollar amount, as determined in accordance
with a schedule of reductions established by the Secretary for
this purpose.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–258

FEDERAL FAMILY EDUCATION LOAN PROGRAM ACCOUNT

For Federal administrative expenses to carry out guaranteed
student loans authorized by title IV, part B, of the Higher Education
Act, as amended, $46,572,000.
HIGHER EDUCATION

For carrying out, to the extent not otherwise provided, parts
A and B of title III, without regard to section 360(a)(1)(B)(ii),
titles IV, V, VI, VII, and IX, part A and subpart 1 of part B
of title X, and title XI of the Higher Education Act of 1965, as
amended, Public Law 102–423 and the Mutual Educational and
Cultural Exchange Act of 1961; $879,054,000, of which $15,673,000
for interest subsidies under title VII of the Higher Education Act,
as amended, shall remain available until expended: Provided, That
funds available for part D of title IX of the Higher Education
Act shall be available to fund noncompeting continuation awards
for academic year 1997–1998 for fellowships awarded originally
under part B of title IX of said Act, under the terms and conditions
of part B: Provided further, That $5,931,000 of the funds available
for part D of title IX of the Higher Education Act shall be available
to fund new and noncompeting continuation awards for academic
year 1997–1998 for fellowships awarded under part C of title IX
of said Act, under the terms and conditions of part C: Provided
further, That notwithstanding sections 419D, 419E, and 419H of
the Higher Education Act, as amended, scholarships made under
title IV, part A, subpart 6 shall be prorated to maintain the same
number of new scholarships in fiscal year 1997 as in fiscal year
1996: Provided further, That $3,000,000, to remain available until
expended, shall be for the George H.W. Bush fellowship program,
if authorized by April 1, 1997: Provided further, That $3,000,000,
to remain available until expended, shall be for the Edmund S.
Muskie Foundation to establish an endowment fund to provide
income to support such foundation on a continuing basis, if authorized by April 1, 1997: Provided further, That $3,000,000, to remain
available until expended, shall be for the Claiborne Pell Institute
for International Relations and Public Policy at Salve Regina University in Newport, Rhode Island, if authorized by April 1, 1997:
Provided further, That $1,000,000, to remain available until expended, shall be for the Calvin Coolidge Memorial Foundation,
if authorized by April 1, 1997: Provided further, That, of the
amounts made available under title X, part A of the Higher Education Act, $2,000,000 shall be awarded to the Pennsylvania Educational Telecommunications Exchange Network.
HOWARD UNIVERSITY

For partial support of Howard University (20 U.S.C. 121 et
seq.), $196,000,000: Provided, That from the amount available, the
University may at its discretion use funds for the endowment
program as authorized under the Howard University Endowment
Act (Public Law 98–480).
HIGHER EDUCATION FACILITIES LOANS

The Secretary is hereby authorized to make such expenditures,
within the limits of funds available under this heading and in
accord with law, and to make such contracts and commitments

110 STAT. 3009–259

PUBLIC LAW 104–208—SEPT. 30, 1996

without regard to fiscal year limitation, as provided by section
104 of the Government Corporation Control Act (31 U.S.C. 9104),
as may be necessary in carrying out the program for the current
fiscal year.
COLLEGE HOUSING AND ACADEMIC FACILITIES LOANS PROGRAM

For administrative expenses to carry out the existing direct
loan program of college housing and academic facilities loans
entered into pursuant to title VII, part C, of the Higher Education
Act, as amended, $698,000.
COLLEGE HOUSING LOANS

Pursuant to title VII, part C of the Higher Education Act,
as amended, for necessary expenses of the college housing loans
program, the Secretary shall make expenditures and enter into
contracts without regard to fiscal year limitation using loan repayments and other resources available to this account. Any unobligated balances becoming available from fixed fees paid into this
account pursuant to 12 U.S.C. 1749d, relating to payment of costs
for inspections and site visits, shall be available for the operating
expenses of this account.
HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL FINANCING,
PROGRAM ACCOUNT

The total amount of bonds insured pursuant to section 724
of title VII, part B of the Higher Education Act shall not exceed
$357,000,000, and the cost, as defined in section 502 of the Congressional Budget Act of 1974, of such bonds shall not exceed zero.
For administrative expenses to carry out the Historically Black
College and University Capital Financing Program entered into
pursuant to title VII, part B of the Higher Education Act, as
amended, $104,000.
EDUCATION RESEARCH, STATISTICS, AND IMPROVEMENT

For carrying out activities authorized by the Educational
Research, Development, Dissemination, and Improvement Act of
1994, including part E; the National Education Statistics Act of
1994; section 2102, sections 3132, 3136 and 3141, parts B, C,
and D of title III and parts A, B, I, and K and section 10601
of title X, and part C of title XIII of the Elementary and Secondary
Education Act of 1965, as amended, and title VI of Public Law
103–227, $598,350,000: Provided, That $200,000,000 shall be for
section 3132, $56,965,000 shall be for section 3136 and $10,000,000
shall be for section 3141 of the Elementary and Secondary Education Act: Provided further, That notwithstanding any other provision of law, one-half of one percent of the amount available for
section 3132 of the Elementary and Secondary Education Act of
1965, as amended, shall be set aside for the outlying areas to
be distributed among the outlying areas on the basis of their relative
need as determined by the Secretary in accordance with the purposes of the program: Provided further, That, notwithstanding section 3131(b) of said Act, if any State educational agency does
not apply for a grant under section 3132, that State’s allotment
under section 3131 shall be reserved by the Secretary for grants
to local educational agencies in the State that apply directly to

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–260

the Secretary according to the terms and conditions announced
by the Secretary in the Federal Register: Provided further, That,
of the amount available for title III, part B of the Elementary
and Secondary Education Act of 1965, as amended, funds shall
be awarded to continue the Iowa Communication Network statewide
fiber optic demonstration and $2,000,000 shall be awarded to the
Southeastern Pennsylvania Consortium for Higher Education for
the establishment of local and wide area computer networks to
provide instructional resources to students and faculty: Provided
further, That none of the funds appropriated in this paragraph
may be obligated or expended for the Goals 2000 Community Partnerships Program.
LIBRARIES

Notwithstanding title VII of this Act, for carrying out titles
I, II, III, and IV of the Library Services and Construction Act,
and title II–B of the Higher Education Act, $136,369,000, of which
$16,369,000 shall be used to carry out the provisions of title II
of the Library Services and Construction Act and shall remain
available until expended; and $2,500,000 shall be for section 222
and $5,000,000 shall be for section 223 of the Higher Education
Act: Provided, That $1,000,000 shall be competitively awarded to
a nonprofit regional social tolerance resource center, operating tolerance tools and prejudice reduction programs and multimedia tolerance and genocide exhibits: Provided further, That $1,500,000 shall
be for the continuation of a demonstration project making information available for public use by connecting Internet to a multistate
consortium and a historical society: Provided further, That
$1,000,000 shall be for continuation of catalog conversion of research
and doctoral institutions and networking of local libraries under
the fiber optics demonstration initiated in Public Law 102–394
under section 223 of the Higher Education Act: Provided further,
That each State or local recipient of funds under titles I, II, III,
and IV of the Library Services and Construction Act may use
any such funds to plan for any library program or activity authorized under title VII of this Act and conduct any other activity
reasonably necessary to provide for an orderly and effective transition to the operation of library programs or activities under title
VII of this Act.
DEPARTMENTAL MANAGEMENT
PROGRAM ADMINISTRATION

For carrying out, to the extent not otherwise provided, the
Department of Education Organization Act, including rental of conference rooms in the District of Columbia and hire of two passenger
motor vehicles, $327,000,000.
OFFICE FOR CIVIL RIGHTS

For expenses necessary for the Office for Civil Rights, as authorized by section 203 of the Department of Education Organization
Act, $55,000,000.

110 STAT. 3009–261

PUBLIC LAW 104–208—SEPT. 30, 1996
OFFICE OF THE INSPECTOR GENERAL

For expenses necessary for the Office of the Inspector General,
as authorized by section 212 of the Department of Education
Organization Act, $30,000,000.
GENERAL PROVISIONS

20 USC 1087h
note.

SEC. 301. No funds appropriated in this Act may be used
for the transportation of students or teachers (or for the purchase
of equipment for such transportation) in order to overcome racial
imbalance in any school or school system, or for the transportation
of students or teachers (or for the purchase of equipment for such
transportation) in order to carry out a plan of racial desegregation
of any school or school system.
SEC. 302. None of the funds contained in this Act shall be
used to require, directly or indirectly, the transportation of any
student to a school other than the school which is nearest the
student’s home, except for a student requiring special education,
to the school offering such special education, in order to comply
with title VI of the Civil Rights Act of 1964. For the purpose
of this section an indirect requirement of transportation of students
includes the transportation of students to carry out a plan involving
the reorganization of the grade structure of schools, the pairing
of schools, or the clustering of schools, or any combination of grade
restructuring, pairing or clustering. The prohibition described in
this section does not include the establishment of magnet schools.
SEC. 303. No funds appropriated under this Act may be used
to prevent the implementation of programs of voluntary prayer
and meditation in the public schools.
SEC. 304. Notwithstanding any other provision of law, funds
available under section 458 of the Higher Education Act shall
not exceed $491,000,000 for fiscal year 1997. The Department of
Education shall use $80,000,000 of the amounts provided for payment of administrative cost allowances to guaranty agencies for
fiscal year 1996. For fiscal year 1997, the Department of Education
shall pay administrative costs to guaranty agencies, calculated on
the basis of 0.85 percent of the total principal amount of loans
upon which insurance was issued on or after October 1, 1996:
Provided, That such administrative costs shall be paid only on
the first $8,200,000,000 of the principal amount of loans upon
which insurance was issued on or after October 1, 1996 by such
guaranty agencies, and shall not exceed a total of $70,000,000.
Such payments are to be paid quarterly, and receipt of such funds
and uses of such funds shall be in accordance with section 428(f)
of the Higher Education Act.
Notwithstanding section 458 of the Higher Education Act, the
Secretary may not use funds available under that section or any
other section for subsequent fiscal years for administrative expenses
of the William D. Ford Direct Loan Program. The Secretary may
not require the return of guaranty agency reserve funds during
fiscal year 1997, except after consultation with both the Chairmen
and ranking members of the House Economic and Educational
Opportunities Committee and the Senate Labor and Human
Resources Committee. Any reserve funds recovered by the Secretary
shall be returned to the Treasury of the United States for purposes
of reducing the Federal deficit.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–262

No funds available to the Secretary may be used for (1) the
hiring of advertising agencies or other third parties to provide
advertising services for student loan programs prior to January
1, 1997, or (2) payment of administrative fees relating to the William
D. Ford Direct Loan Program to institutions of higher education.
SEC. 305. None of the funds appropriated in this Act may
be obligated or expended to carry out section 621(b) of Public
Law 101–589.
(TRANSFER OF FUNDS)

SEC. 306. Not to exceed 1 percent of any discretionary funds
(pursuant to the Balanced Budget and Emergency Deficit Control
Act, as amended) which are appropriated for the current fiscal
year for the Department of Education in this Act may be transferred
between appropriations, but no such appropriation shall be
increased by more than 3 percent by any such transfer: Provided,
That the Appropriations Committees of both Houses of Congress
are notified at least fifteen days in advance of any transfer.
SEC. 307. (a) Section 8003(f)(3)(A)(i) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7703(f)(3)(A)(i)) is
amended—
(1) in the matter preceding subclause (I), by striking ‘‘The
Secretary’’ and all that follows through ‘‘greater of—’’ and
inserting the following: ‘‘The Secretary, in conjunction with
the local educational agency, shall first determine each of the
following:’’;
(2) in each of subclauses (I) through (III), by striking ‘‘the
average’’ each place it appears the first time in each such
subclause and inserting ‘‘The average’’;
(3) in subclause (I), by striking the semicolon and inserting
a period;
(4) in subclause (II), by striking ‘‘: or’’ and inserting a
period; and
(5) by adding at the end the following:
‘‘The local educational agency shall select one of the amounts
determined under subclause (I), (II), or (III) for purposes of the
remaining computations under this subparagraph.’’.
(b) The amendments made by subsection (a) shall apply with
respect to fiscal years beginning with fiscal year 1995.
SEC. 308. Section 485(e)(9) of the Higher Education Act of
1965 is amended by striking out ‘‘June 30’’ in the second sentence
of such section and inserting ‘‘August 30’’.
This title may be cited as the ‘‘Department of Education Appropriations Act, 1997’’.
TITLE IV—RELATED AGENCIES
ARMED FORCES RETIREMENT HOME
For expenses necessary for the Armed Forces Retirement Home
to operate and maintain the United States Soldiers’ and Airmen’s
Home and the United States Naval Home, to be paid from funds
available in the Armed Forces Retirement Home Trust Fund,
$56,204,000, of which $432,000 shall remain available until
expended for construction and renovation of the physical plants
at the United States Soldiers’ and Airmen’s Home and the United
States Naval Home: Provided, That this appropriation shall not

20 USC 7703
note.
20 USC 1092.

110 STAT. 3009–263

PUBLIC LAW 104–208—SEPT. 30, 1996

be available for the payment of hospitalization of members of the
Soldiers’ and Airmen’s Home in United States Army hospitals at
rates in excess of those prescribed by the Secretary of the Army
upon recommendation of the Board of Commissioners and the Surgeon General of the Army.
CORPORATION

FOR

NATIONAL

AND

COMMUNITY SERVICE

DOMESTIC VOLUNTEER SERVICE PROGRAMS, OPERATING EXPENSES

For expenses necessary for the Corporation for National and
Community Service to carry out the provisions of the Domestic
Volunteer Service Act of 1973, as amended, $213,969,000.
CORPORATION

FOR

PUBLIC BROADCASTING

For payment to the Corporation for Public Broadcasting, as
authorized by the Communications Act of 1934, an amount which
shall be available within limitations specified by that Act, for the
fiscal year 1999, $250,000,000: Provided, That no funds made available to the Corporation for Public Broadcasting by this Act shall
be used to pay for receptions, parties, or similar forms of entertainment for Government officials or employees: Provided further, That
none of the funds contained in this paragraph shall be available
or used to aid or support any program or activity from which
any person is excluded, or is denied benefits, or is discriminated
against, on the basis of race, color, national origin, religion, or
sex.
FEDERAL MEDIATION

AND

CONCILIATION SERVICE

SALARIES AND EXPENSES

For expenses necessary for the Federal Mediation and Conciliation Service to carry out the functions vested in it by the Labor
Management Relations Act, 1947 (29 U.S.C. 171–180, 182–183),
including hire of passenger motor vehicles; and for expenses necessary for the Labor-Management Cooperation Act of 1978 (29
U.S.C. 175a); and for expenses necessary for the Service to carry
out the functions vested in it by the Civil Service Reform Act,
Public Law 95–454 (5 U.S.C. chapter 71), $32,579,000 including
$1,500,000, to remain available through September 30, 1998, for
activities authorized by the Labor-Management Cooperation Act
of 1978 (29 U.S.C. 175a): Provided, That notwithstanding 31 U.S.C.
3302, fees charged, up to full-cost recovery, for special training
activities and for arbitration services shall be credited to and
merged with this account, and shall remain available until
expended: Provided further, That fees for arbitration services shall
be available only for education, training, and professional development of the agency workforce: Provided further, That the Director
of the Service is authorized to accept on behalf of the United
States gifts of services and real, personal, or other property in
the aid of any projects or functions within the Director’s jurisdiction.

PUBLIC LAW 104–208—SEPT. 30, 1996
FEDERAL MINE SAFETY

AND

110 STAT. 3009–264

HEALTH REVIEW COMMISSION

SALARIES AND EXPENSES

For expenses necessary for the Federal Mine Safety and Health
Review Commission (30 U.S.C. 801 et seq.), $6,060,000.
NATIONAL COMMISSION

ON

LIBRARIES

AND INFORMATION

SCIENCE

SALARIES AND EXPENSES

For necessary expenses for the National Commission on Libraries and Information Science, established by the Act of July 20,
1970 (Public Law 91–345, as amended by Public Law 102–95),
$897,000.
NATIONAL COUNCIL

ON

DISABILITY

SALARIES AND EXPENSES

For expenses necessary for the National Council on Disability
as authorized by title IV of the Rehabilitation Act of 1973, as
amended, $1,793,000.
NATIONAL EDUCATION GOALS PANEL
For expenses necessary for the National Education Goals Panel,
as authorized by title II, part A of the Goals 2000: Educate America
Act, $1,500,000.
NATIONAL LABOR RELATIONS BOARD
SALARIES AND EXPENSES

For expenses necessary for the National Labor Relations Board
to carry out the functions vested in it by the Labor-Management
Relations Act, 1947, as amended (29 U.S.C. 141–167), and other
laws, $175,000,000: Provided, That no part of this appropriation
shall be available to organize or assist in organizing agricultural
laborers or used in connection with investigations, hearings, directives, or orders concerning bargaining units composed of agricultural
laborers as referred to in section 2(3) of the Act of July 5, 1935
(29 U.S.C. 152), and as amended by the Labor-Management Relations Act, 1947, as amended, and as defined in section 3(f) of
the Act of June 25, 1938 (29 U.S.C. 203), and including in said
definition employees engaged in the maintenance and operation
of ditches, canals, reservoirs, and waterways when maintained or
operated on a mutual, nonprofit basis and at least 95 per centum
of the water stored or supplied thereby is used for farming purposes:
Provided further, That none of the funds made available by this
Act shall be used in any way to promulgate a final rule (altering
29 CFR part 103) regarding single location bargaining units in
representation cases.

110 STAT. 3009–265

PUBLIC LAW 104–208—SEPT. 30, 1996
NATIONAL MEDIATION BOARD
SALARIES AND EXPENSES

For expenses necessary to carry out the provisions of the Railway Labor Act, as amended (45 U.S.C. 151–188), including emergency boards appointed by the President, $8,300,000: Provided,
That unobligated balances at the end of fiscal year 1997 not needed
for emergency boards shall remain available for other statutory
purposes through September 30, 1998.
OCCUPATIONAL SAFETY

AND

HEALTH REVIEW COMMISSION

SALARIES AND EXPENSES

For expenses necessary for the Occupational Safety and Health
Review Commission (29 U.S.C. 661), $7,753,000.
PHYSICIAN PAYMENT REVIEW COMMISSION
SALARIES AND EXPENSES

For expenses necessary to carry out section 1845(a) of the
Social Security Act, $3,263,000, to be transferred to this appropriation from the Federal Supplementary Medical Insurance Trust
Fund.
PROSPECTIVE PAYMENT ASSESSMENT COMMISSION
SALARIES AND EXPENSES

For expenses necessary to carry out section 1886(e) of the
Social Security Act, $3,263,000, to be transferred to this appropriation from the Federal Hospital Insurance and the Federal Supplementary Medical Insurance Trust Funds.
SOCIAL SECURITY ADMINISTRATION
PAYMENTS TO SOCIAL SECURITY TRUST FUNDS

For payment to the Federal Old-Age and Survivors Insurance
and the Federal Disability Insurance trust funds, as provided under
sections 201(m), 228(g), and 1131(b)(2) of the Social Security Act,
$20,923,000.
In addition, to reimburse these trust funds for administrative
expenses to carry out sections 9704 and 9706 of the Internal Revenue Code of 1986, $10,000,000, to remain available until expended.
SPECIAL BENEFITS FOR DISABLED COAL MINERS

For carrying out title IV of the Federal Mine Safety and Health
Act of 1977, $460,070,000, to remain available until expended.
For making, after July 31 of the current fiscal year, benefit
payments to individuals under title IV of the Federal Mine Safety
and Health Act of 1977, for costs incurred in the current fiscal
year, such amounts as may be necessary.
For making benefit payments under title IV of the Federal
Mine Safety and Health Act 1977 for the first quarter of fiscal
year 1998, $160,000,000, to remain available until expended.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–266

SUPPLEMENTAL SECURITY INCOME PROGRAM

For carrying out titles XI and XVI of the Social Security Act,
section 401 of Public Law 92–603, section 212 of Public Law 93–
66, as amended, and section 405 of Public Law 95–216, including
payment to the Social Security trust funds for administrative
expenses incurred pursuant to section 201(g)(1) of the Social Security Act, $19,372,010,000, to remain available until expended: Provided, That any portion of the funds provided to a State in the
current fiscal year and not obligated by the State during that
year shall be returned to the Treasury.
From funds provided under the previous paragraph, not less
than $100,000,000 shall be available for payment to the Social
Security trust funds for administrative expenses for conducting
continuing disability reviews.
In addition, $175,000,000, to remain available until September
30, 1998, for payment to the Social Security trust funds for administrative expenses for continuing disability reviews as authorized
by section 103 of Public Law 104–121 and Supplemental Security
Income administrative work as authorized by Public Law 104–
193. The term ‘‘continuing disability reviews’’ means reviews and
redetermination as defined under section 201(g)(1)(A) of the Social
Security Act as amended, and reviews and redeterminations authorized under section 211 of Public Law 104–193.
For making, after June 15 of the current fiscal year, benefit
payments to individuals under title XVI of the Social Security
Act, for unanticipated costs incurred for the current fiscal year,
such sums as may be necessary.
For carrying out title XVI of the Social Security Act for the
first quarter of fiscal year 1998, $9,690,000,000, to remain available
until expended.
LIMITATION ON ADMINISTRATIVE EXPENSES

For necessary expenses, including the hire of two passenger
motor vehicles, and not to exceed $10,000 for official reception
and representation expenses, not more than $5,873,382,000 may
be expended, as authorized by section 201(g)(1) of the Social Security Act or as necessary to carry out sections 9704 and 9706 of
the Internal Revenue Code of 1986 from any one or all of the
trust funds referred to therein: Provided, That reimbursement to
the trust funds under this heading for administrative expenses
to carry out sections 9704 and 9706 of the Internal Revenue Code
of 1986 shall be made, with interest, not later than September
30, 1998: Provided further, That not less than $1,268,000 shall
be for the Social Security Advisory Board: Provided further, That
unobligated balances at the end of fiscal year 1997 not needed
for fiscal year 1997 shall remain available until expended for a
state-of-the-art computing network, including related equipment
and administrative expenses associated solely with this network.
From funds provided under the previous paragraph, not less
than $200,000,000 shall be available for conducting continuing
disability reviews.
In addition to funding already available under this heading,
and subject to the same terms and conditions, $310,000,000, to
remain available until September 30, 1998, for continuing disability
reviews as authorized by section 103 of Public Law 104–121 and
Supplemental Security Income administrative work as authorized

110 STAT. 3009–267

PUBLIC LAW 104–208—SEPT. 30, 1996

by Public Law 104–193. The term ‘‘continuing disability reviews’’
means reviews and redetermination as defined under section
201(g)(1)(A) of the Social Security Act as amended, and reviews
and redeterminations authorized under section 211 of Public Law
104–193.
In addition to funding already available under this heading,
and subject to the same terms and conditions, $234,895,000, which
shall remain available until expended, to invest in a state-of-theart computing network, including related equipment and administrative expenses associated solely with this network, for the Social
Security Administration and the State Disability Determination
Services, may be expended from any or all of the trust funds
as authorized by section 201(g)(1) of the Social Security Act.
OFFICE OF INSPECTOR GENERAL

For expenses necessary for the Office of Inspector General
in carrying out the provisions of the Inspector General Act of
1978, as amended, $6,335,000, together with not to exceed
$31,089,000, to be transferred and expended as authorized by section 201(g)(1) of the Social Security Act from the Federal OldAge and Survivors Insurance Trust Fund and the Federal Disability
Insurance Trust Fund.
RAILROAD RETIREMENT BOARD
DUAL BENEFITS PAYMENTS ACCOUNT

For payment to the Dual Benefits Payments Account, authorized under section 15(d) of the Railroad Retirement Act of 1974,
$223,000,000, which shall include amounts becoming available in
fiscal year 1997 pursuant to section 224(c)(1)(B) of Public Law
98–76; and in addition, an amount, not to exceed 2 percent of
the amount provided herein, shall be available proportional to the
amount by which the product of recipients and the average benefit
received exceeds $223,000,000: Provided, That the total amount
provided herein shall be credited in 12 approximately equal amounts
on the first day of each month in the fiscal year.
FEDERAL PAYMENTS TO THE RAILROAD RETIREMENT ACCOUNTS

For payment to the accounts established in the Treasury for
the payment of benefits under the Railroad Retirement Act for
interest earned on unnegotiated checks, $300,000, to remain available through September 30, 1998, which shall be the maximum
amount available for payment pursuant to section 417 of Public
Law 98–76.
LIMITATION ON ADMINISTRATION

For necessary expenses for the Railroad Retirement Board for
administration of the Railroad Retirement Act and the Railroad
Unemployment Insurance Act, $87,898,000, to be derived in such
amounts as determined by the Board from the railroad retirement
accounts and from moneys credited to the railroad unemployment
insurance administration fund.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–268

LIMITATION ON THE OFFICE OF INSPECTOR GENERAL

For expenses necessary for the Office of Inspector General
for audit, investigatory and review activities, as authorized by the
Inspector General Act of 1978, as amended, not more than
$5,404,000, to be derived from the railroad retirement accounts
and railroad unemployment insurance account: Provided, That none
of the funds made available in this Act may be transferred to
the Office from the Department of Health and Human Services,
or used to carry out any such transfer: Provided further, That
none of the funds made available in this paragraph may be used
for any audit, investigation, or review of the Medicare program.
UNITED STATES INSTITUTE

OF

PEACE

OPERATING EXPENSES

For necessary expenses of the United States Institute of Peace
as authorized in the United States Institute of Peace Act,
$11,160,000.
TITLE V—GENERAL PROVISIONS
SEC. 501. The Secretaries of Labor, Health and Human Services, and Education are authorized to transfer unexpended balances
of prior appropriations to accounts corresponding to current appropriations provided in this Act: Provided, That such transferred
balances are used for the same purpose, and for the same periods
of time, for which they were originally appropriated.
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. (a) No part of any appropriation contained in this
Act shall be used, other than for normal and recognized executivelegislative relationships, for publicity or propaganda purposes, for
the preparation, distribution, or use of any kit, pamphlet, booklet,
publication, radio, television, or video presentation designed to support or defeat legislation pending before the Congress, except in
presentation to the Congress itself or any State legislature, except
in presentation to the Congress or any State legislative body itself.
(b) No part of any appropriation contained in this Act shall
be used to pay the salary or expenses of any grant or contract
recipient, or agent acting for such recipient, related to any activity
designed to influence legislation or appropriations pending before
the Congress or any State legislature.
SEC. 504. The Secretaries of Labor and Education are each
authorized to make available not to exceed $15,000 from funds
available for salaries and expenses under titles I and III, respectively, for official reception and representation expenses; the Director of the Federal Mediation and Conciliation Service is authorized
to make available for official reception and representation expenses
not to exceed $2,500 from the funds available for ‘‘Salaries and
expenses, Federal Mediation and Conciliation Service’’; and the
Chairman of the National Mediation Board is authorized to make
available for official reception and representation expenses not to
exceed $2,500 from funds available for ‘‘Salaries and expenses,
National Mediation Board’’.

110 STAT. 3009–269

31 USC 1301
note.

PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 505. Notwithstanding any other provision of this Act,
no funds appropriated under this Act shall be used to carry out
any program of distributing sterile needles for the hypodermic
injection of any illegal drug unless the Secretary of Health and
Human Services determines that such programs are effective in
preventing the spread of HIV and do not encourage the use of
illegal drugs.
SEC. 506. (a) PURCHASE OF AMERICAN-MADE EQUIPMENT AND
PRODUCTS.—It is the sense of the Congress that, to the greatest
extent practicable, all equipment and products purchased with
funds made available in this Act should be American-made.
(b) NOTICE REQUIREMENT.—In providing financial assistance
to, or entering into any contract with, any entity using funds
made available in this Act, the head of each Federal agency, to
the greatest extent practicable, shall provide to such entity a notice
describing the statement made in subsection (a) by the Congress.
(c) PROHIBITION OF CONTRACTS WITH PERSONS FALSELY LABELING PRODUCTS AS MADE IN AMERICA.—If it has been finally determined by a court or Federal agency that any person intentionally
affixed a label bearing a ‘‘Made in America’’ inscription, or any
inscription with the same meaning, to any product sold in or shipped
to the United States that is not made in the United States, the
person shall be ineligible to receive any contract or subcontract
made with funds made available in this Act, pursuant to the debarment, suspension, and ineligibility procedures described in sections
9.400 through 9.409 of title 48, Code of Federal Regulations.
SEC. 507. When issuing statements, press releases, requests
for proposals, bid solicitations and other documents describing
projects or programs funded in whole or in part with Federal
money, all grantees receiving Federal funds included in this Act,
including but not limited to State and local governments and recipients of Federal research grants, shall clearly state (1) the percentage
of the total costs of the program or project which will be financed
with Federal money, (2) the dollar amount of Federal funds for
the project or program, and (3) percentage and dollar amount of
the total costs of the project or program that will be financed
by nongovernmental sources.
SEC. 508. None of the funds appropriated under this Act shall
be expended for any abortion except when it is made known to
the Federal entity or official to which funds are appropriated under
this Act that such procedure is necessary to save the life of the
mother or that the pregnancy is the result of an act of rape or
incest.
SEC. 509. Notwithstanding any other provision of law—
(1) no amount may be transferred from an appropriation
account for the Departments of Labor, Health and Human
Services, and Education except as authorized in this or any
subsequent appropriation Act, or in the Act establishing the
program or activity for which funds are contained in this Act;
(2) no department, agency, or other entity, other than the
one responsible for administering the program or activity for
which an appropriation is made in this Act, may exercise
authority for the timing of the obligation and expenditure of
such appropriation, or for the purpose for which it is obligated
and expended, except to the extent and in the manner otherwise
provided in sections 1512 and 1513 of title 31, United States
Code; and

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110 STAT. 3009–270

(3) no funds provided under this Act shall be available
for the salary (or any part thereof) of an employee who is
reassigned on a temporary detail basis to another position
in the employing agency or department or in any other agency
or department, unless the detail is independently approved
by the head of the employing department or agency.
SEC. 510. None of the funds made available in this Act may
be used for the expenses of an electronic benefit transfer (EBT)
task force.
SEC. 511. None of the funds made available in this Act may
be used to enforce the requirements of section 428(b)(1)(U)(iii) of
the Higher Education Act of 1965 with respect to any lender when
it is made known to the Federal official having authority to obligate
or expend such funds that the lender has a loan portfolio under
part B of title IV of such Act that is equal to or less than $5,000,000.
SEC. 512. (a) None of the funds made available in this Act
may be used for—
(1) the creation of a human embryo or embryos for research
purposes; or
(2) research in which a human embryo or embryos are
destroyed, discarded, or knowingly subjected to risk of injury
or death greater than that allowed for research on fetuses
in utero under 45 CFR 46.208(a)(2) and section 498(b) of the
Public Health Service Act (42 U.S.C. 289g(b)).
(b) For purposes of this section, the term ‘‘human embryo
or embryos’’ include any organism, not protected as a human subject
under 45 CFR 46 as of the date of the enactment of this Act,
that is derived by fertilization, parthenogenesis, cloning, or any
other means from one or more human gametes.
SEC. 513. (a) LIMITATION ON USE OF FUNDS FOR PROMOTION
OF LEGALIZATION OF CONTROLLED SUBSTANCES.—None of the funds
made available in this Act may be used for any activity when
it is made known to the Federal official having authority to obligate
or expend such funds that the activity promotes the legalization
of any drug or other substance included in schedule I of the schedules of controlled substances established by section 202 of the
Controlled Substances Act (21 U.S.C. 812).
(b) EXCEPTIONS.—The limitation in subsection (a) shall not
apply when it is made known to the Federal official having authority
to obligate or expend such funds that there is significant medical
evidence of a therapeutic advantage to the use of such drug or
other substance or that Federally-sponsored clinical trials are being
conducted to determine therapeutic advantage.
SEC. 514. (a) DENIAL OF FUNDS FOR PREVENTING ROTC ACCESS
TO CAMPUS.—None of the funds made available in this or any
other Departments of Labor, Health and Human Services, and
Education, and Related Agencies Appropriations Act for any fiscal
year may be provided by contract or by grant (including a grant
of funds to be available for student aid) to a covered educational
entity if the Secretary of Defense determines that the covered
educational entity has a policy or practice (regardless of when
implemented) that either prohibits, or in effect prevents—
(1) the maintaining, establishing, or operation of a unit
of the Senior Reserve Officer Training Corps (in accordance
with section 654 of title 10, United States Code, and other
applicable Federal laws) at the covered educational entity; or

10 USC 503 note.

110 STAT. 3009–271

PUBLIC LAW 104–208—SEPT. 30, 1996

(2) a student at the covered educational entity from enrolling in a unit of the Senior Reserve Officer Training Corps
at another institution of higher education.
(b) DENIAL OF FUNDS FOR PREVENTING FEDERAL MILITARY
RECRUITING ON CAMPUS.—None of the funds made available in
this or any other Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act for
any fiscal year may be provided by contract or by grant (including
a grant of funds to be available for student aid) to a covered
educational entity if the Secretary of Defense determines that the
covered educational entity has a policy or practice (regardless of
when implemented) that either prohibits, or in effect prevents—
(1) entry to campuses, or access to students (who are 17
years of age or older) on campuses, for purposes of Federal
military recruiting; or
(2) access by military recruiters for purposes of Federal
military recruiting to the following information pertaining to
students (who are 17 years of age or older) enrolled at the
covered educational entity:
(A) student names, addresses, and telephone listings;
and
(B) if known, student ages, levels of education, and
majors.
(c) EXCEPTIONS.—The limitation established in subsection (a)
or (b) shall not apply to a covered educational entity if the Secretary
of Defense determines that—
(1) the covered educational entity has ceased the policy
or practice described in such subsection;
(2) the institution of higher education involved has a longstanding policy of pacifism based on historical religious affiliation; or
(3) the institution of higher education involved is prohibited
by the law of any State, or by the order of any State court,
from allowing Senior Reserve Officer Training Corps activities
or Federal military recruiting on campus, except that this paragraph shall apply only during the one-year period beginning
on the effective date of this section.
(d) NOTICE OF DETERMINATIONS.—Whenever the Secretary of
Defense makes a determination under subsection (a), (b), or (c),
the Secretary—
(1) shall transmit a notice of the determination to the
Secretary of Education and to the Congress; and
(2) shall publish in the Federal Register a notice of the
determination and the effect of the determination on the eligibility of the covered educational entity for contracts and grants.
(e) SEMIANNUAL NOTICE IN FEDERAL REGISTER.—The Secretary
of Defense shall publish in the Federal Register once every 6
months a list of each covered educational entity that is currently
ineligible for contracts and grants by reason of a determination
of the Secretary under subsection (a) or (b).
(f) COVERED EDUCATIONAL ENTITY.—For purposes of this section, the term ‘‘covered educational entity’’ means an institution
of higher education, or a subelement of an institution of higher
education.
(g) EFFECTIVE DATE.—This section shall take effect upon the
expiration of the 180-day period beginning on the date of the enactment of this Act, by which date the Secretary of Defense shall

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–272

have published final regulations in consultation with the Secretary
of Education to carry out this section.
SEC. 515. (a) TECHNICAL AMENDMENT TO OTHER ROTC AND
MILITARY RECRUITING PROVISIONS.—Sections 508 and 509 of the
Energy and Water Development Appropriations Act, 1997, are
amended by striking ‘‘when it is made known to the Federal official
having authority to obligate or expend such funds’’ each place
it appears and inserting ‘‘if the Secretary of Defense determines’’.
(b) EFFECTIVE DATE.—Sections 508 and 509 of the Energy
and Water Development Appropriations Act, 1997, shall not take
effect until the expiration of the 180-day period beginning on the
date of the enactment of this Act, by which date the Secretary
of Defense shall have published final regulations to carry out such
sections (as amended by subsection (a)).
SEC. 516. None of the funds made available in this Act may
be obligated or expended to enter into or renew a contract with
an entity when it is made known to the Federal official having
authority to obligate or expend such funds that—
(1) such entity is otherwise a contractor with the United
States and is subject to the requirement in section 4212(d)
of title 38, United States Code, regarding submission of an
annual report to the Secretary of Labor concerning employment
of certain veterans; and
(2) such entity has not submitted a report as required
by that section for the most recent year for which such requirement was applicable to such entity.
SEC. 517. (a) Notwithstanding any provision of the Carl D.
Perkins Vocational and Applied Technology Act (as such Act was
in effect on September 24, 1990), a State shall be deemed to have
met the requirements of section 503 of such Act with respect to
decisions appealed by applications filed on April 30, 1993 and
October 29, 1993 under section 452(b) of the General Education
Provisions Act.
(b) Subsection (a) shall take effect on October 1, 1996.
SEC. 518. None of the funds appropriated in this Act may
be made available to any entity under title X of the Public Health
Service Act unless it is made known to the Federal official having
authority to obligate or expend such funds that the applicant for
the award certifies to the Secretary that it encourages family
participation in the decision of the minor to seek family planning
services.
SEC. 519. Of the budgetary resources available to agencies
in this Act for salaries and expenses during fiscal year 1997,
$30,500,000, to be allocated by the Office of Management and
Budget, are permanently canceled: Provided, That the foregoing
provision shall not apply to the Food and Drug Administration
and the Indian Health Service: Provided further, That amounts
available in this Act for congressional and legislative affairs, public
affairs, and intergovernmental affairs activities are hereby reduced
by $2,000,000.
SEC. 520. VOLUNTARY SEPARATION INCENTIVES FOR EMPLOYEES
OF CERTAIN FEDERAL AGENCIES.—(a) DEFINITIONS.—For the purposes of this section—
(1) the term ‘‘agency’’ means the Railroad Retirement Board
and the Office of Inspector General of the Railroad Retirement
Board;

5 USC 5597 note.

110 STAT. 3009–273

PUBLIC LAW 104–208—SEPT. 30, 1996

(2) the term ‘‘employee’’ means an employee (as defined
by section 2105 of title 5, United States Code) who is employed
by an agency, is serving under an appointment without time
limitation, and has been currently employed for a continuous
period of at least 3 years, but does not include—
(A) a reemployed annuitant under subchapter III of
chapter 83 or chapter 84 of title 5, United States Code,
or another retirement system for employees of the agency;
(B) an employee having a disability on the basis of
which such employee is or would be eligible for disability
retirement under subchapter III of chapter 83 or chapter
84 of title 5, United States Code, or another retirement
system for employees of the agency;
(C) an employee who is in receipt of a specific notice
of involuntary separation for misconduct or unacceptable
performance;
(D) an employee who, upon completing an additional
period of service as referred to in section 3(b)(2)(B)(ii) of
the Federal Workforce Restructuring Act of 1994 (5 U.S.C.
5597 note), would qualify for a voluntary separation incentive payment under section 3 of such Act;
(E) an employee who has previously received any voluntary separation incentive payment by the Federal
Government under this section or any other authority and
has not repaid such payment;
(F) an employee covered by statutory reemployment
rights who is on transfer to another organization; or
(G) any employee who, during the twenty-four-month
period preceding the date of separation, has received a
recruitment or relocation bonus under section 5753 of title
5, United States Code, or who, within the twelve-month
period preceding the date of separation, received a retention
allowance under section 5754 of title 5, United States Code.
(b) AGENCY STRATEGIC PLAN.—
(1) IN GENERAL.—The three-member Railroad Retirement
Board, prior to obligating any resources for voluntary separation incentive payments, shall submit to the House and Senate
Committees on Appropriations and the Committee on Governmental Affairs of the Senate and the Committee on Government
Reform and Oversight of the House of Representatives a strategic plan outlining the intended use of such incentive payments
and a proposed organizational chart for the agency once such
incentive payments have been completed.
(2) CONTENTS.—The agency’s plan shall include—
(A) the positions and functions to be reduced or eliminated, identified by organizational unit, geographic location, occupational category and grade level;
(B) the number and amounts of voluntary separation
incentive payments to be offered; and
(C) a description of how the agency will operate without
the eliminated positions and functions.
(c) AUTHORITY TO PROVIDE VOLUNTARY SEPARATION INCENTIVE
PAYMENTS.—
(1) IN GENERAL.—A voluntary separation incentive payment
under this section may be paid by an agency to any employee
only to the extent necessary to eliminate the positions and
functions identified by the strategic plan.

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110 STAT. 3009–274

(2) AMOUNT AND TREATMENT OF PAYMENTS.—A voluntary
separation incentive payment—
(A) shall be paid in a lump sum after the employee’s
separation;
(B) shall be paid from appropriations or funds available
for the payment of the basic pay of the employees;
(C) shall be equal to the lesser of—
(i) an amount equal to the amount the employee
would be entitled to receive under section 5595(c) of
title 5, United States Code; or
(ii) an amount determined by the agency head
not to exceed $25,000;
(D) may not be made except in the case of any qualifying employee who voluntarily separates (whether by retirement or resignation) before September 30, 1997;
(E) shall not be a basis for payment, and shall not
be included in the computation, of any other type of Government benefit; and
(F) shall not be taken into account in determining
the amount of any severance pay to which the employee
may be entitled under section 5595 of title 5, United States
Code, based on any other separation.
(d) ADDITIONAL AGENCY CONTRIBUTIONS TO THE RETIREMENT
FUND.—
(1) IN GENERAL.—In addition to any other payments which
it is required to make under subchapter III of chapter 83
of title 5, United States Code, an agency shall remit to the
Office of Personnel Management for deposit in the Treasury
of the United States to the credit of the Civil Service Retirement
and Disability Fund an amount equal to 15 percent of the
final basic pay of each employee of the agency who is covered
under subchapter III of chapter 83 or chapter 84 of title 5,
United States Code, to whom a voluntary separation incentive
has been paid under this section.
2) DEFINITION.—For the purpose of paragraph (1), the term
‘‘final basic pay’’, with respect to an employee, means the total
amount of basic pay which would be payable for a year of
service by such employee, computed using the employee’s final
rate of basic pay, and, if last serving on other than a fulltime basis, with appropriate adjustment therefor.
e) EFFECT OF SUBSEQUENT EMPLOYMENT WITH THE GOVERNMENT.—An individual who has received a voluntary separation
incentive payment under this section and accepts any employment
for compensation with the Government of the United States, or
who works for any agency of the United States Government through
a personal services contract, within 5 years after the date of the
separation on which the payment is based shall be required to
pay, prior to the individual’s first day of employment, the entire
amount of the incentive payment to the agency that paid the
incentive payment.
(f) REDUCTION OF AGENCY EMPLOYMENT LEVELS.—
(1) IN GENERAL.—The total number of funded employee
positions in the agency shall be reduced by one position for
each vacancy created by the separation of any employee who

110 STAT. 3009–275

42 USC 233 note.

Student Loan
Marketing
Association
Reorganization
Act of 1996.
20 USC 1001
note.

PUBLIC LAW 104–208—SEPT. 30, 1996

has received, or is due to receive, a voluntary separation incentive payment under this section. For the purposes of this subsection, positions shall be counted on a full-time-equivalent
basis.
(2) ENFORCEMENT.—The President, through the Office of
Management and Budget, shall monitor the agency and take
any action necessary to ensure that the requirements of this
subsection are met.
(g) EFFECTIVE DATE.—This section shall take effect October
1, 1996.
SEC. 521. CORRECTION OF EFFECTIVE DATE.—Effective on the
day after the date of enactment of the Health Centers Consolidation
Act of 1996, section 5 of that Act is amended by striking ‘‘October
1, 1997’’ and inserting ‘‘October 1, 1996’’.
TITLE VI—REORGANIZATION AND PRIVATIZATION OF
SALLIE MAE AND CONNIE LEE
SEC. 601. SHORT TITLE.

This title may be cited as the ‘‘Student Loan Marketing Association Reorganization Act of 1996’’.
SEC. 602. REORGANIZATION OF THE STUDENT LOAN MARKETING
ASSOCIATION THROUGH THE FORMATION OF A HOLDING
COMPANY.

(a) AMENDMENT.—Part B of title IV of the Higher Education
Act of 1965 (20 U.S.C. 1071 et seq.) is amended by inserting
after section 439 (20 U.S.C. 1087–2) the following new section:
20 USC 1087–3.

‘‘SEC. 440. REORGANIZATION OF THE STUDENT LOAN MARKETING
ASSOCIATION THROUGH THE FORMATION OF A HOLDING
COMPANY.

‘‘(a) ACTIONS BY THE ASSOCIATION’S BOARD OF DIRECTORS.—
The Board of Directors of the Association shall take or cause to
be taken all such action as the Board of Directors deems necessary
or appropriate to effect, upon the shareholder approval described
in subsection (b), a restructuring of the common stock ownership
of the Association, as set forth in a plan of reorganization adopted
by the Board of Directors (the terms of which shall be consistent
with this section) so that all of the outstanding common shares
of the Association shall be directly owned by a Holding Company.
Such actions may include, in the Board of Director’s discretion,
a merger of a wholly owned subsidiary of the Holding Company
with and into the Association, which would have the effect provided
in the plan of reorganization and the law of the jurisdiction in
which such subsidiary is incorporated. As part of the restructuring,
the Board of Directors may cause—
‘‘(1) the common shares of the Association to be converted,
on the reorganization effective date, to common shares of the
Holding Company on a one for one basis, consistent with
applicable State or District of Columbia law; and
‘‘(2) Holding Company common shares to be registered
with the Securities and Exchange Commission.
‘‘(b) SHAREHOLDER APPROVAL.—The plan of reorganization
adopted by the Board of Directors pursuant to subsection (a) shall
be submitted to common shareholders of the Association for their
approval. The reorganization shall occur on the reorganization effective date, provided that the plan of reorganization has been

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–276

approved by the affirmative votes, cast in person or by proxy,
of the holders of a majority of the issued and outstanding shares
of the Association common stock.
‘‘(c) TRANSITION.—In the event the shareholders of the Association approve the plan of reorganization under subsection (b), the
following provisions shall apply beginning on the reorganization
effective date:
‘‘(1) IN GENERAL.—Except as specifically provided in this
section, until the dissolution date the Association shall continue
to have all of the rights, privileges and obligations set forth
in, and shall be subject to all of the limitations and restrictions
of, section 439, and the Association shall continue to carry
out the purposes of such section. The Holding Company and
any subsidiary of the Holding Company (other than the Association) shall not be entitled to any of the rights, privileges,
and obligations, and shall not be subject to the limitations
and restrictions, applicable to the Association under section
439, except as specifically provided in this section. The Holding
Company and any subsidiary of the Holding Company (other
than the Association or a subsidiary of the Association) shall
not purchase loans insured under this Act until such time
as the Association ceases acquiring such loans, except that
the Holding Company may purchase such loans if the Association is merely continuing to acquire loans as a lender of last
resort pursuant to section 439(q) or under an agreement with
the Secretary described in paragraph (6).
‘‘(2) TRANSFER OF CERTAIN PROPERTY.—
‘‘(A) IN GENERAL.—Except as provided in this section,
on the reorganization effective date or as soon as practicable thereafter, the Association shall use the Association’s best efforts to transfer to the Holding Company or
any subsidiary of the Holding Company (or both), as
directed by the Holding Company, all real and personal
property of the Association (both tangible and intangible)
other than the remaining property. Subject to the preceding
sentence, such transferred property shall include all right,
title, and interest in—
‘‘(i) direct or indirect subsidiaries of the Association
(excluding special purpose funding companies in existence on the date of enactment of this section and
any interest in any government-sponsored enterprise);
‘‘(ii) contracts, leases, and other agreements of the
Association;
‘‘(iii) licenses and other intellectual property of
the Association; and
‘‘(iv) any other property of the Association.
‘‘(B) CONSTRUCTION.—Nothing in this paragraph shall
be construed to prohibit the Association from transferring
remaining property from time to time to the Holding Company or any subsidiary of the Holding Company, subject
to the provisions of paragraph (4).
‘‘(3) TRANSFER OF PERSONNEL.—On the reorganization effective date, employees of the Association shall become employees
of the Holding Company (or any subsidiary of the Holding
Company), and the Holding Company (or any subsidiary of
the Holding Company) shall provide all necessary and appropriate management and operational support (including loan

110 STAT. 3009–277

PUBLIC LAW 104–208—SEPT. 30, 1996

servicing) to the Association, as requested by the Association.
The Association, however, may obtain such management and
operational support from persons or entities not associated
with the Holding Company.
‘‘(4) DIVIDENDS.—The Association may pay dividends in
the form of cash or noncash distributions so long as at the
time of the declaration of such dividends, after giving effect
to the payment of such dividends as of the date of such declaration by the Board of Directors of the Association, the Association’s capital would be in compliance with the capital standards
and requirements set forth in section 439(r). If, at any time
after the reorganization effective date, the Association fails
to comply with such capital standards, the Holding Company
shall transfer with due diligence to the Association additional
capital in such amounts as are necessary to ensure that the
Association again complies with the capital standards.
‘‘(5) CERTIFICATION PRIOR TO DIVIDEND.—Prior to the payment of any dividend under paragraph (4), the Association
shall certify to the Secretary of the Treasury that the payment
of the dividend will be made in compliance with paragraph
(4) and shall provide copies of all calculations needed to make
such certification.
‘‘(6) RESTRICTIONS ON NEW BUSINESS ACTIVITY OR ACQUISITION OF ASSETS BY ASSOCIATION.—
‘‘(A) IN GENERAL.—After the reorganization effective
date, the Association shall not engage in any new business
activities or acquire any additional program assets
described in section 439(d) other than in connection with—
‘‘(i) student loan purchases through September 30,
2007;
‘‘(ii)
contractual
commitments
for
future
warehousing advances, or pursuant to letters of credit
or standby bond purchase agreements, which are
outstanding as of the reorganization effective date;
‘‘(iii) the Association serving as a lender-of-lastresort pursuant to section 439(q); and
‘‘(iv) the Association’s purchase of loans insured
under this part, if the Secretary, with the approval
of the Secretary of the Treasury, enters into an agreement with the Association for the continuation or
resumption of the Association’s secondary market purchase program because the Secretary determines there
is inadequate liquidity for loans made under this part.
‘‘(B) AGREEMENT.—The Secretary is authorized to enter
into an agreement described in clause (iv) of subparagraph
(A) with the Association covering such secondary market
activities. Any agreement entered into under such clause
shall cover a period of 12 months, but may be renewed
if the Secretary determines that liquidity remains inadequate. The fee provided under section 439(h)(7) shall not
apply to loans acquired under any such agreement with
the Secretary.
‘‘(7) ISSUANCE OF DEBT OBLIGATIONS DURING THE TRANSITION PERIOD; ATTRIBUTES OF DEBT OBLIGATIONS.—After the
reorganization effective date, the Association shall not issue
debt obligations which mature later than September 30, 2008,
except in connection with serving as a lender-of-last-resort

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–278

pursuant to section 439(q) or with purchasing loans under
an agreement with the Secretary as described in paragraph
(6). Nothing in this section shall modify the attributes accorded
the debt obligations of the Association by section 439, regardless
of whether such debt obligations are incurred prior to, or at
any time following, the reorganization effective date or are
transferred to a trust in accordance with subsection (d).
‘‘(8) MONITORING OF SAFETY AND SOUNDNESS.—
‘‘(A) OBLIGATION TO OBTAIN, MAINTAIN, AND REPORT
INFORMATION.—The Association shall obtain such information and make and keep such records as the Secretary
of the Treasury may from time to time prescribe concerning—
‘‘(i) the financial risk to the Association resulting
from the activities of any associated person, to the
extent such activities are reasonably likely to have
a material impact on the financial condition of the
Association, including the Association’s capital ratio,
the Association’s liquidity, or the Association’s ability
to conduct and finance the Association’s operations;
and
‘‘(ii) the Association’s policies, procedures, and systems for monitoring and controlling any such financial
risk.
‘‘(B) SUMMARY REPORTS.—The Secretary of the Treasury may require summary reports of the information
described in subparagraph (A) to be filed no more frequently than quarterly. If, as a result of adverse market
conditions or based on reports provided pursuant to this
subparagraph or other available information, the Secretary
of the Treasury has concerns regarding the financial or
operational condition of the Association, the Secretary of
the Treasury may, notwithstanding the preceding sentence
and subparagraph (A), require the Association to make
reports concerning the activities of any associated person
whose business activities are reasonably likely to have
a material impact on the financial or operational condition
of the Association.
‘‘(C) SEPARATE OPERATION OF CORPORATIONS.—
‘‘(i) IN GENERAL.—The funds and assets of the
Association shall at all times be maintained separately
from the funds and assets of the Holding Company
or any subsidiary of the Holding Company and may
be used by the Association solely to carry out the
Association’s purposes and to fulfill the Association’s
obligations.
‘‘(ii) BOOKS AND RECORDS.—The Association shall
maintain books and records that clearly reflect the
assets and liabilities of the Association, separate from
the assets and liabilities of the Holding Company or
any subsidiary of the Holding Company.
‘‘(iii) CORPORATE OFFICE.—The Association shall
maintain a corporate office that is physically separate
from any office of the Holding Company or any subsidiary of the Holding Company.
‘‘(iv) DIRECTOR.—No director of the Association
who is appointed by the President pursuant to section

110 STAT. 3009–279

PUBLIC LAW 104–208—SEPT. 30, 1996
439(c)(1)(A) may serve as a director of the Holding
Company.
‘‘(v) ONE OFFICER REQUIREMENT.—At least one officer of the Association shall be an officer solely of the
Association.
‘‘(vi) TRANSACTIONS.—Transactions between the
Association and the Holding Company or any subsidiary of the Holding Company, including any loan servicing arrangements, shall be on terms no less favorable
to the Association than the Association could obtain
from an unrelated third party offering comparable services.
‘‘(vii) CREDIT PROHIBITION.—The Association shall
not extend credit to the Holding Company or any
subsidiary of the Holding Company nor guarantee or
provide any credit enhancement to any debt obligations
of the Holding Company or any subsidiary of the Holding Company.
‘‘(viii) AMOUNTS COLLECTED.—Any amounts collected on behalf of the Association by the Holding
Company or any subsidiary of the Holding Company
with respect to the assets of the Association, pursuant
to a servicing contract or other arrangement between
the Association and the Holding Company or any
subsidiary of the Holding Company, shall be collected
solely for the benefit of the Association and shall be
immediately deposited by the Holding Company or
such subsidiary to an account under the sole control
of the Association.
‘‘(D) ENCUMBRANCE OF ASSETS.—Notwithstanding any
Federal or State law, rule, or regulation, or legal or equitable principle, doctrine, or theory to the contrary, under
no circumstances shall the assets of the Association be
available or used to pay claims or debts of or incurred
by the Holding Company. Nothing in this subparagraph
shall be construed to limit the right of the Association
to pay dividends not otherwise prohibited under this
subparagraph or to limit any liability of the Holding Company explicitly provided for in this section.
‘‘(E) HOLDING COMPANY ACTIVITIES.—After the reorganization effective date and prior to the dissolution date,
all business activities of the Holding Company shall be
conducted through subsidiaries of the Holding Company.
‘‘(F) CONFIDENTIALITY.—Any information provided by
the Association pursuant to this section shall be subject
to the same confidentiality obligations contained in section
439(r)(12).
‘‘(G) DEFINITION.—For purposes of this paragraph, the
term ‘associated person’ means any person, other than
a natural person, who is directly or indirectly controlling,
controlled by, or under common control with, the Association.
‘‘(9) ISSUANCE OF STOCK WARRANTS.—
‘‘(A) IN GENERAL.—On the reorganization effective date,
the Holding Company shall issue to the District of Columbia Financial Responsibility and Management Assistance
Authority a number of stock warrants that is equal to

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–280

one percent of the outstanding shares of the Association,
determined as of the last day of the fiscal quarter preceding
the date of enactment of this section, with each stock
warrant entitling the holder of the stock warrant to purchase from the Holding Company one share of the registered common stock of the Holding Company or the Holding Company’s successors or assigns, at any time on or
before September 30, 2008. The exercise price for such
warrants shall be an amount equal to the average closing
price of the common stock of the Association for the 20
business days prior to the date of enactment of this section
on the exchange or market which is then the primary
exchange or market for the common stock of the Association. The number of shares of Holding Company common
stock subject to each stock warrant and the exercise price
of each stock warrant shall be adjusted as necessary to
reflect—
‘‘(i) the conversion of Association common stock
into Holding Company common stock as part of the
plan of reorganization approved by the Association’s
shareholders; and
‘‘(ii) any issuance or sale of stock (including issuance or sale of treasury stock), stock split, recapitalization, reorganization, or other corporate event, if agreed
to by the Secretary of the Treasury and the Association.
‘‘(B) AUTHORITY TO SELL OR EXERCISE STOCK WARRANTS;
DEPOSIT OF PROCEEDS.—The District of Columbia Financial
Responsibility and Management Assistance Authority is
authorized to sell or exercise the stock warrants described
in subparagraph (A). The District of Columbia Financial
Responsibility and Management Assistance Authority shall
deposit into the account established under section 3(e) of
the Student Loan Marketing Association Reorganization
Act of 1996 amounts collected from the sale and proceeds
resulting from the exercise of the stock warrants pursuant
to this subparagraph.
‘‘(10) RESTRICTIONS ON TRANSFER OF ASSOCIATION SHARES
AND BANKRUPTCY OF ASSOCIATION.—After the reorganization
effective date, the Holding Company shall not sell, pledge,
or otherwise transfer the outstanding shares of the Association,
or agree to or cause the liquidation of the Association or cause
the Association to file a petition for bankruptcy under title
11, United States Code, without prior approval of the Secretary
of the Treasury and the Secretary of Education.
‘‘(d) TERMINATION OF THE ASSOCIATION.—In the event the shareholders of the Association approve a plan of reorganization under
subsection (b), the Association shall dissolve, and the Association’s
separate existence shall terminate on September 30, 2008, after
discharge of all outstanding debt obligations and liquidation pursuant to this subsection. The Association may dissolve pursuant to
this subsection prior to such date by notifying the Secretary of
Education and the Secretary of the Treasury of the Association’s
intention to dissolve, unless within 60 days after receipt of such
notice the Secretary of Education notifies the Association that the
Association continues to be needed to serve as a lender of last
resort pursuant to section 439(q) or continues to be needed to
purchase loans under an agreement with the Secretary described

110 STAT. 3009–281

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in subsection (c)(6). On the dissolution date, the Association shall
take the following actions:
‘‘(1) ESTABLISHMENT OF A TRUST.—The Association shall,
under the terms of an irrevocable trust agreement that is
in form and substance satisfactory to the Secretary of the
Treasury, the Association and the appointed trustee, irrevocably
transfer all remaining obligations of the Association to the
trust and irrevocably deposit or cause to be deposited into
such trust, to be held as trust funds solely for the benefit
of holders of the remaining obligations, money or direct noncallable obligations of the United States or any agency thereof
for which payment the full faith and credit of the United
States is pledged, maturing as to principal and interest in
such amounts and at such times as are determined by the
Secretary of the Treasury to be sufficient, without consideration
of any significant reinvestment of such interest, to pay the
principal of, and interest on, the remaining obligations in
accordance with their terms. To the extent the Association
cannot provide money or qualifying obligations in the amount
required, the Holding Company shall be required to transfer
money or qualifying obligations to the trust in the amount
necessary to prevent any deficiency.
‘‘(2) USE OF TRUST ASSETS.—All money, obligations, or
financial assets deposited into the trust pursuant to this subsection shall be applied by the trustee to the payment of the
remaining obligations assumed by the trust.
‘‘(3) OBLIGATIONS NOT TRANSFERRED TO THE TRUST.—The
Association shall make proper provision for all other obligations
of the Association not transferred to the trust, including the
repurchase or redemption, or the making of proper provision
for the repurchase or redemption, of any preferred stock of
the Association outstanding. Any obligations of the Association
which cannot be fully satisfied shall become liabilities of the
Holding Company as of the date of dissolution.
‘‘(4) TRANSFER OF REMAINING ASSETS.—After compliance
with paragraphs (1) and (3), any remaining assets of the trust
shall be transferred to the Holding Company or any subsidiary
of the Holding Company, as directed by the Holding Company.
‘‘(e) OPERATION OF THE HOLDING COMPANY.—In the event the
shareholders of the Association approve the plan of reorganization
under subsection (b), the following provisions shall apply beginning
on the reorganization effective date:
‘‘(1) HOLDING COMPANY BOARD OF DIRECTORS.—The number
of members and composition of the Board of Directors of the
Holding Company shall be determined as set forth in the Holding Company’s charter or like instrument (as amended from
time to time) or bylaws (as amended from time to time) and
as permitted under the laws of the jurisdiction of the Holding
Company’s incorporation.
‘‘(2) HOLDING COMPANY NAME.—The names of the Holding
Company and any subsidiary of the Holding Company (other
than the Association)—
‘‘(A) may not contain the name ‘Student Loan Marketing Association’; and
‘‘(B) may contain, to the extent permitted by applicable
State or District of Columbia law, ‘Sallie Mae’ or variations
thereof, or such other names as the Board of Directors

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–282

of the Association or the Holding Company deems appropriate.
‘‘(3) USE OF SALLIE MAE NAME.—Subject to paragraph (2),
the Association may assign to the Holding Company, or any
subsidiary of the Holding Company, the ‘Sallie Mae’ name
as a trademark or service mark, except that neither the Holding
Company nor any subsidiary of the Holding Company (other
than the Association or any subsidiary of the Association) may
use the ‘Sallie Mae’ name on, or to identify the issuer of,
any debt obligation or other security offered or sold by the
Holding Company or any subsidiary of the Holding Company
(other than a debt obligation or other security issued to and
held by the Holding Company or any subsidiary of the Holding
Company). The Association shall remit to the account established under section 3(e) of the Student Loan Marketing
Association Reorganization Act of 1996, $5,000,000, within 60
days of the reorganization effective date as compensation for
the right to assign the ‘Sallie Mae’ name as a trademark
or service mark.
‘‘(4) DISCLOSURE REQUIRED.—Until 3 years after the dissolution date, the Holding Company, and any subsidiary of
the Holding Company (other than the Association), shall prominently display—
‘‘(A) in any document offering the Holding Company’s
securities, a statement that the obligations of the Holding
Company and any subsidiary of the Holding Company are
not guaranteed by the full faith and credit of the United
States; and
‘‘(B) in any advertisement or promotional materials
which use the ‘Sallie Mae’ name or mark, a statement
that neither the Holding Company nor any subsidiary of
the Holding Company is a government-sponsored enterprise
or instrumentality of the United States.
‘‘(f) STRICT CONSTRUCTION.—Except as specifically set forth in
this section, nothing in this section shall be construed to limit
the authority of the Association as a federally chartered corporation,
or of the Holding Company as a State or District of Columbia
chartered corporation.
‘‘(g) RIGHT TO ENFORCE.—The Secretary of Education or the
Secretary of the Treasury, as appropriate, may request that the
Attorney General bring an action in the United States District
Court for the District of Columbia for the enforcement of any
provision of this section, or may, under the direction or control
of the Attorney General, bring such an action. Such court shall
have jurisdiction and power to order and require compliance with
this section.
‘‘(h) DEADLINE FOR REORGANIZATION EFFECTIVE DATE.—This
section shall be of no further force and effect in the event that
the reorganization effective date does not occur on or before 18
months after the date of enactment of this section.
‘‘(i) DEFINITIONS.—For purposes of this section:
‘‘(1) ASSOCIATION.—The term ‘Association’ means the Student Loan Marketing Association.
‘‘(2) DISSOLUTION DATE.—The term ‘dissolution date’ means
September 30, 2008, or such earlier date as the Secretary
of Education permits the transfer of remaining obligations in
accordance with subsection (d).

110 STAT. 3009–283

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(3) HOLDING COMPANY.—The term ‘Holding Company’
means the new business corporation established pursuant to
this section by the Association under the laws of any State
of the United States or the District of Columbia for the purposes
of the reorganization and restructuring described in subsection
(a).
‘‘(4) REMAINING OBLIGATIONS.—The term ‘remaining obligations’ means the debt obligations of the Association outstanding
as of the dissolution date.
‘‘(5) REMAINING PROPERTY.—The term ‘remaining property’
means the following assets and liabilities of the Association
which are outstanding as of the reorganization effective date:
‘‘(A) Debt obligations issued by the Association.
‘‘(B) Contracts relating to interest rate, currency, or
commodity positions or protections.
‘‘(C) Investment securities owned by the Association.
‘‘(D) Any instruments, assets, or agreements described
in section 439(d) (including, without limitation, all student
loans and agreements relating to the purchase and sale
of student loans, forward purchase and lending commitments, warehousing advances, academic facilities obligations, letters of credit, standby bond purchase agreements,
liquidity agreements, and student loan revenue bonds or
other loans).
‘‘(E) Except as specifically prohibited by this section
or section 439, any other nonmaterial assets or liabilities
of the Association which the Association’s Board of Directors determines to be necessary or appropriate to the
Association’s operations.
‘‘(6) REORGANIZATION.—The term ‘reorganization’ means
the restructuring event or events (including any merger event)
giving effect to the Holding Company structure described in
subsection (a).
‘‘(7) REORGANIZATION EFFECTIVE DATE.—The term ‘reorganization effective date’ means the effective date of the reorganization as determined by the Board of Directors of the Association, which shall not be earlier than the date that shareholder
approval is obtained pursuant to subsection (b) and shall not
be later than the date that is 18 months after the date of
enactment of this section.
‘‘(8) SUBSIDIARY.—The term ‘subsidiary’ means one or more
direct or indirect subsidiaries.’’.
(b) TECHNICAL AMENDMENTS.—
(1) ELIGIBLE LENDER.—
(A) AMENDMENTS TO THE HIGHER EDUCATION ACT.—
(i) DEFINITION OF ELIGIBLE LENDER.—Section
435(d)(1)(F) of the Higher Education Act of 1965 (20
U.S.C. 1085(d)(1)(F)) is amended by inserting after
‘‘Student Loan Marketing Association’’ the following:
‘‘or the Holding Company of the Student Loan Marketing Association, including any subsidiary of the Holding Company, created pursuant to section 440,’’.
(ii) DEFINITION OF ELIGIBLE LENDER AND FEDERAL
CONSOLIDATION LOANS.—Sections 435(d)(1)(G) and
428C(a)(1)(A) of such Act (20 U.S.C. 1085(d)(1)(G) and
1078–3(a)(1)(A)) are each amended by inserting after
‘‘Student Loan Marketing Association’’ the following:

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–284

‘‘or the Holding Company of the Student Loan Marketing Association, including any subsidiary of the Holding Company, created pursuant to section 440’’.
(B) EFFECTIVE DATE.—The amendments made by this
paragraph shall take effect on the reorganization effective
date as defined in section 440(h) of the Higher Education
Act of 1965 (as added by subsection (a)).
(2) ENFORCEMENT OF SAFETY AND SOUNDNESS REQUIREMENTS.—Section 439(r) of the Higher Education Act of 1965
(20 U.S.C. 1087–2(r)) is amended—
(A) in the first sentence of paragraph (12), by inserting
‘‘or the Association’s associated persons’’ after ‘‘by the
Association’’;
(B) by redesignating paragraph (13) as paragraph (15);
and
(C) by inserting after paragraph (12) the following
new paragraph:
‘‘(13) ENFORCEMENT OF SAFETY AND SOUNDNESS REQUIREMENTS.—The Secretary of Education or the Secretary of the
Treasury, as appropriate, may request that the Attorney General bring an action in the United States District Court for
the District of Columbia for the enforcement of any provision
of this section, or may, under the direction or control of the
Attorney General, bring such an action. Such court shall have
jurisdiction and power to order and require compliance with
this section.’’.
(3) FINANCIAL SAFETY AND SOUNDNESS.—Section 439(r) of
the Higher Education Act of 1965 (20 U.S.C. 1087–2(r)) is
further amended—
(A) in paragraph (1)—
(i) by striking ‘‘and’’ at the end of subparagraph
(A);
(ii) by striking the period at the end of subparagraph (B) and inserting ‘‘; and’’; and
(iii) by adding at the end the following new
subparagraph:
‘‘(C)(i) financial statements of the Association within
45 days of the end of each fiscal quarter; and
‘‘(ii) reports setting forth the calculation of the capital
ratio of the Association within 45 days of the end of each
fiscal quarter.’’;
(B) in paragraph (2)—
(i) by striking clauses (i) and (ii) of subparagraph
(A) and inserting the following:
‘‘(i) appoint auditors or examiners to conduct audits
of the Association from time to time to determine the
condition of the Association for the purpose of assessing
the Association’s financial safety and soundness and to
determine whether the requirements of this section and
section 440 are being met; and
‘‘(ii) obtain the services of such experts as the Secretary
of the Treasury determines necessary and appropriate, as
authorized by section 3109 of title 5, United States Code,
to assist in determining the condition of the Association
for the purpose of assessing the Association’s financial
safety and soundness, and to determine whether the

20 USC 1078–3
note.

110 STAT. 3009–285

PUBLIC LAW 104–208—SEPT. 30, 1996

requirements of this section and section 440 are being
met.’’; and
(ii) by adding at the end the following new
subparagraph:
‘‘(D) ANNUAL ASSESSMENT.—
‘‘(i) IN GENERAL.—For each fiscal year beginning on
or after October 1, 1996, the Secretary of the Treasury
may establish and collect from the Association an assessment (or assessments) in amounts sufficient to provide
for reasonable costs and expenses of carrying out the duties
of the Secretary of the Treasury under this section and
section 440 during such fiscal year. In no event may the
total amount so assessed exceed, for any fiscal year,
$800,000, adjusted for each fiscal year ending after September 30, 1997, by the ratio of the Consumer Price Index
for All Urban Consumers (issued by the Bureau of Labor
Statistics) for the final month of the fiscal year preceding
the fiscal year for which the assessment is made to the
Consumer Price Index for All Urban Consumers for
September 1997.
‘‘(ii) DEPOSIT.—Amounts collected from assessments
under this subparagraph shall be deposited in an account
within the Treasury of the United States as designated
by the Secretary of the Treasury for that purpose. The
Secretary of the Treasury is authorized and directed to
pay out of any funds available in such account the reasonable costs and expenses of carrying out the duties of the
Secretary of the Treasury under this section and section
440. None of the funds deposited into such account shall
be available for any purpose other than making payments
for such costs and expenses.’’; and
(C) by inserting after paragraph (13) (as added by
paragraph (2)(C)) the following new paragraph:
‘‘(14) ACTIONS BY SECRETARY.—
‘‘(A) IN GENERAL.—For any fiscal quarter ending after
January 1, 2000, the Association shall have a capital ratio
of at least 2.25 percent. The Secretary of the Treasury
may, whenever such capital ratio is not met, take any
one or more of the actions described in paragraph (7),
except that—
‘‘(i) the capital ratio to be restored pursuant to
paragraph (7)(D) shall be 2.25 percent; and
‘‘(ii) if the relevant capital ratio is in excess of
or equal to 2 percent for such quarter, the Secretary
of the Treasury shall defer taking any of the actions
set forth in paragraph (7) until the next succeeding
quarter and may then proceed with any such action
only if the capital ratio of the Association remains
below 2.25 percent.
‘‘(B) APPLICABILITY.—The provisions of paragraphs (4),
(5), (6), (8), (9), (10), and (11) shall be of no further application to the Association for any period after January 1,
2000.’’.
(4) INFORMATION REQUIRED; DIVIDENDS.—Section 439(r) of
the Higher Education Act of 1965 (20 U.S.C. 1087–2(r)) is
further amended—

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–286

(A) by adding at the end of paragraph (2) (as amended
in paragraph (3)(B)(ii)) the following new subparagraph:
‘‘(E) OBLIGATION TO OBTAIN, MAINTAIN, AND REPORT
INFORMATION.—
‘‘(i) IN GENERAL.—The Association shall obtain such
information and make and keep such records as the Secretary of the Treasury may from time to time prescribe
concerning—
‘‘(I) the financial risk to the Association resulting
from the activities of any associated person, to the
extent such activities are reasonably likely to have
a material impact on the financial condition of the
Association, including the Association’s capital ratio,
the Association’s liquidity, or the Association’s ability
to conduct and finance the Association’s operations;
and
‘‘(II) the Association’s policies, procedures, and systems for monitoring and controlling any such financial
risk.
‘‘(ii) SUMMARY REPORTS.—The Secretary of the Treasury may require summary reports of such information to
be filed no more frequently than quarterly. If, as a result
of adverse market conditions or based on reports provided
pursuant to this subparagraph or other available information, the Secretary of the Treasury has concerns regarding
the financial or operational condition of the Association,
the Secretary of the Treasury may, notwithstanding the
preceding sentence and clause (i), require the Association
to make reports concerning the activities of any associated
person, whose business activities are reasonably likely to
have a material impact on the financial or operational
condition of the Association.
‘‘(iii) DEFINITION.—For purposes of this subparagraph,
the term ‘associated person’ means any person, other than
a natural person, directly or indirectly controlling, controlled by, or under common control with the Association.’’;
and
(B) by adding at the end the following new paragraphs:
‘‘(16) DIVIDENDS.—The Association may pay dividends in
the form of cash or noncash distributions so long as at the
time of the declaration of such dividends, after giving effect
to the payment of such dividends as of the date of such declaration by the Board of Directors of the Association, the Association’s capital would be in compliance with the capital standards
set forth in this section.
‘‘(17) CERTIFICATION PRIOR TO PAYMENT OF DIVIDEND.—
Prior to the payment of any dividend under paragraph (16),
the Association shall certify to the Secretary of the Treasury
that the payment of the dividend will be made in compliance
with paragraph (16) and shall provide copies of all calculations
needed to make such certification.’’.
(c) SUNSET OF THE ASSOCIATION’S CHARTER IF NO REORGANIZATION PLAN OCCURS.—Section 439 of the Higher Education Act of
1965 (20 U.S.C. 1087–2) is amended by adding at the end the
following new subsection:
‘‘(s) CHARTER SUNSET.—

110 STAT. 3009–287

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(1) APPLICATION OF PROVISIONS.—This subsection applies
beginning 18 months and one day after the date of enactment
of this subsection if no reorganization of the Association occurs
in accordance with the provisions of section 440.
‘‘(2) SUNSET PLAN.—
‘‘(A) PLAN SUBMISSION BY THE ASSOCIATION.—Not later
than July 1, 2007, the Association shall submit to the
Secretary of the Treasury and to the Chairman and Ranking Member of the Committee on Labor and Human
Resources of the Senate and the Chairman and Ranking
Member of the Committee on Economic and Educational
Opportunities of the House of Representatives, a detailed
plan for the orderly winding up, by July 1, 2013, of business
activities conducted pursuant to the charter set forth in
this section. Such plan shall—
‘‘(i) ensure that the Association will have adequate
assets to transfer to a trust, as provided in this subsection, to ensure full payment of remaining obligations
of the Association in accordance with the terms of
such obligations;
‘‘(ii) provide that all assets not used to pay liabilities shall be distributed to shareholders as provided
in this subsection; and
‘‘(iii) provide that the operations of the Association
shall remain separate and distinct from that of any
entity to which the assets of the Association are transferred.
‘‘(B) AMENDMENT OF THE PLAN BY THE ASSOCIATION.—
The Association shall from time to time amend such plan
to reflect changed circumstances, and submit such amendments to the Secretary of the Treasury and to the Chairman and Ranking Minority Member of the Committee on
Labor and Human Resources of the Senate and Chairman
and Ranking Minority Member of the Committee on Economic and Educational Opportunities of the House of Representatives. In no case may any amendment extend the
date for full implementation of the plan beyond the dissolution date provided in paragraph (3).
‘‘(C) PLAN MONITORING.—The Secretary of the Treasury
shall monitor the Association’s compliance with the plan
and shall continue to review the plan (including any amendments thereto).
‘‘(D) AMENDMENT OF THE PLAN BY THE SECRETARY OF
THE TREASURY.—The Secretary of the Treasury may require
the Association to amend the plan (including any amendments to the plan), if the Secretary of the Treasury deems
such amendments necessary to ensure full payment of all
obligations of the Association.
‘‘(E) IMPLEMENTATION BY THE ASSOCIATION.—The
Association shall promptly implement the plan (including
any amendments to the plan, whether such amendments
are made by the Association or are required to be made
by the Secretary of the Treasury).
‘‘(3) DISSOLUTION OF THE ASSOCIATION.—The Association
shall dissolve and the Association’s separate existence shall
terminate on July 1, 2013, after discharge of all outstanding
debt obligations and liquidation pursuant to this subsection.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–288

The Association may dissolve pursuant to this subsection prior
to such date by notifying the Secretary of Education and the
Secretary of the Treasury of the Association’s intention to dissolve, unless within 60 days of receipt of such notice the Secretary of Education notifies the Association that the Association
continues to be needed to serve as a lender of last resort
pursuant to subsection (q) or continues to be needed to purchase
loans under an agreement with the Secretary described in
paragraph (4)(A). On the dissolution date, the Association shall
take the following actions:
‘‘(A) ESTABLISHMENT OF A TRUST.—The Association
shall, under the terms of an irrevocable trust agreement
in form and substance satisfactory to the Secretary of the
Treasury, the Association, and the appointed trustee, irrevocably transfer all remaining obligations of the Association
to a trust and irrevocably deposit or cause to be deposited
into such trust, to be held as trust funds solely for the
benefit of holders of the remaining obligations, money or
direct noncallable obligations of the United States or any
agency thereof for which payment the full faith and credit
of the United States is pledged, maturing as to principal
and interest in such amounts and at such times as are
determined by the Secretary of the Treasury to be sufficient, without consideration of any significant reinvestment
of such interest, to pay the principal of, and interest on,
the remaining obligations in accordance with their terms.
‘‘(B) USE OF TRUST ASSETS.—All money, obligations,
or financial assets deposited into the trust pursuant to
this subsection shall be applied by the trustee to the payment of the remaining obligations assumed by the trust.
Upon the fulfillment of the trustee’s duties under the trust,
any remaining assets of the trust shall be transferred to
the persons who, at the time of the dissolution, were the
shareholders of the Association, or to the legal successors
or assigns of such persons.
‘‘(C) OBLIGATIONS NOT TRANSFERRED TO THE TRUST.—
The Association shall make proper provision for all other
obligations of the Association, including the repurchase
or redemption, or the making of proper provision for the
repurchase or redemption, of any preferred stock of the
Association outstanding.
‘‘(D) TRANSFER OF REMAINING ASSETS.—After compliance with subparagraphs (A) and (C), the Association shall
transfer to the shareholders of the Association any remaining assets of the Association.
‘‘(4) RESTRICTIONS RELATING TO WINDING UP.—
‘‘(A) RESTRICTIONS ON NEW BUSINESS ACTIVITY OR
ACQUISITION OF ASSETS BY THE ASSOCIATION.—
‘‘(i) IN GENERAL.—Beginning on July 1, 2009, the
Association shall not engage in any new business
activities or acquire any additional program assets
(including acquiring assets pursuant to contractual
commitments) described in subsection (d) other than
in connection with the Association—
‘‘(I) serving as a lender of last resort pursuant
to subsection (q); and

110 STAT. 3009–289

20 USC 1087–2
note.

20 USC 1087–2
note.

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(II) purchasing loans insured under this part,
if the Secretary, with the approval of the Secretary
of the Treasury, enters into an agreement with
the Association for the continuation or resumption
of the Association’s secondary market purchase
program because the Secretary determines there
is inadequate liquidity for loans made under this
part.
‘‘(ii) AGREEMENT.—The Secretary is authorized to
enter into an agreement described in subclause (II)
of clause (i) with the Association covering such secondary market activities. Any agreement entered into
under such subclause shall cover a period of 12 months,
but may be renewed if the Secretary determines that
liquidity remains inadequate. The fee provided under
subsection (h)(7) shall not apply to loans acquired
under any such agreement with the Secretary.
‘‘(B) ISSUANCE OF DEBT OBLIGATIONS DURING THE WIND
UP PERIOD; ATTRIBUTES OF DEBT OBLIGATIONS.—The
Association shall not issue debt obligations which mature
later than July 1, 2013, except in connection with serving
as a lender of last resort pursuant to subsection (q) or
with purchasing loans under an agreement with the Secretary as described in subparagraph (A). Nothing in this
subsection shall modify the attributes accorded the debt
obligations of the Association by this section, regardless
of whether such debt obligations are transferred to a trust
in accordance with paragraph (3).
‘‘(C) USE OF ASSOCIATION NAME.—The Association may
not transfer or permit the use of the name ‘Student Loan
Marketing Association’, ‘Sallie Mae’, or any variation
thereof, to or by any entity other than a subsidiary of
the Association.’’.
(d) REPEALS.—
(1) IN GENERAL.—Sections 439 of the Higher Education
Act of 1965 (20 U.S.C. 1087–2) and 440 of such Act (as added
by subsection (a) of this section) are repealed.
(2) EFFECTIVE DATE.—The repeals made by paragraph (1)
shall be effective one year after—
(A) the date on which all of the obligations of the
trust established under section 440(d)(1) of the Higher
Education Act of 1965 (as added by subsection (a)) have
been extinguished, if a reorganization occurs in accordance
with section 440 of such Act; or
(B) the date on which all of the obligations of the
trust established under subsection 439(s)(3)(A) of such Act
(as added by subsection (c)) have been extinguished, if
a reorganization does not occur in accordance with section
440 of such Act.
(e) ASSOCIATION NAMES.—Upon dissolution in accordance with
section 439(s) of the Higher Education Act of 1965 (20 U.S.C.
1087–2), the names ‘‘Student Loan Marketing Association’’, ‘‘Sallie
Mae’’, and any variations thereof may not be used by any entity
engaged in any business similar to the business conducted pursuant
to section 439 of such Act (as such section was in effect on the
date of enactment of this Act) without the approval of the Secretary
of the Treasury.

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110 STAT. 3009–290

(f) RIGHT TO ENFORCE.—The Secretary of Education or the
Secretary of the Treasury, as appropriate, may request that the
Attorney General bring an action in the United States District
Court for the District of Columbia for the enforcement of any
provision of subsection (e), or may, under the direction or control
of the Attorney General, bring such an action. Such court shall
have jurisdiction and power to order and require compliance with
subsection (e).

20 USC 1087–2
note.

SEC. 603. CONNIE LEE PRIVATIZATION.

20 USC
1132f–10.

(a) STATUS OF THE CORPORATION AND CORPORATE POWERS;
OBLIGATIONS NOT FEDERALLY GUARANTEED.—
(1) STATUS OF THE CORPORATION.—The Corporation shall
not be an agency, instrumentality, or establishment of the
United States Government, nor a Government corporation, nor
a Government controlled corporation, as such terms are defined
in section 103 of title 5, United States Code. No action under
section 1491 of title 28, United States Code (commonly known
as the Tucker Act) shall be allowable against the United States
based on the actions of the Corporation.
(2) CORPORATE POWERS.—The Corporation shall be subject
to the provisions of this section, and, to the extent not inconsistent with this section, to the District of Columbia Business
Corporation Act (or the comparable law of another State, if
applicable). The Corporation shall have the powers conferred
upon a corporation by the District of Columbia Business Corporation Act (or such other applicable State law) as from time
to time in effect in order to conduct the Corporation’s affairs
as a private, for-profit corporation and to carry out the Corporation’s purposes and activities incidental thereto. The Corporation shall have the power to enter into contracts, to execute
instruments, to incur liabilities, to provide products and services, and to do all things as are necessary or incidental to
the proper management of the Corporation’s affairs and the
efficient operation of a private, for-profit business.
(3) LIMITATION ON OWNERSHIP OF STOCK.—
(A) STUDENT LOAN MARKETING ASSOCIATION.—The Student Loan Marketing Association shall not increase its
share of the ownership of the Corporation in excess of
42 percent of the shares of stock of the Corporation
outstanding on the date of enactment of this Act. The
Student Loan Marketing Association shall not control the
operation of the Corporation, except that the Student Loan
Marketing Association may participate in the election of
directors as a shareholder, and may continue to exercise
the Student Loan Marketing Association’s right to appoint
directors under section 754 of the Higher Education Act
of 1965 (20 U.S.C. 1132f–3) as long as that section is
in effect.
(B) PROHIBITION.—Until such time as the Secretary
of the Treasury sells the stock of the Corporation owned
by the Secretary of Education pursuant to subsection (c),
the Student Loan Marketing Association shall not provide
financial support or guarantees to the Corporation.
(C) FINANCIAL SUPPORT OR GUARANTEES.—After the
Secretary of the Treasury sells the stock of the Corporation
owned by the Secretary of Education pursuant to subsection

110 STAT. 3009–291

PUBLIC LAW 104–208—SEPT. 30, 1996

(c), the Student Loan Marketing Association may provide
financial support or guarantees to the Corporation, if such
support or guarantees are subject to terms and conditions
that are no more advantageous to the Corporation than
the terms and conditions the Student Loan Marketing
Association provides to other entities, including, where
applicable, other monoline financial guaranty corporations
in which the Student Loan Marketing Association has no
ownership interest.
(4) NO FEDERAL GUARANTEE.—
(A) OBLIGATIONS INSURED BY THE CORPORATION.—
(i) FULL FAITH AND CREDIT OF THE UNITED
STATES.—No obligation that is insured, guaranteed, or
otherwise backed by the Corporation shall be deemed
to be an obligation that is guaranteed by the full
faith and credit of the United States.
(ii) STUDENT LOAN MARKETING ASSOCIATION.—No
obligation that is insured, guaranteed, or otherwise
backed by the Corporation shall be deemed to be an
obligation that is guaranteed by the Student Loan
Marketing Association.
(iii) SPECIAL RULE.—This paragraph shall not
affect the determination of whether such obligation
is guaranteed for purposes of Federal income taxes.
(B) SECURITIES OFFERED BY THE CORPORATION.—No
debt or equity securities of the Corporation shall be deemed
to be guaranteed by the full faith and credit of the United
States.
(5) DEFINITION.—The term ‘‘Corporation’’ as used in this
section means the College Construction Loan Insurance
Association as in existence on the day before the date of enactment of this Act, and any successor corporation.
(b) RELATED PRIVATIZATION REQUIREMENTS.—
(1) NOTICE REQUIREMENTS.—
(A) IN GENERAL.—During the six-year period following
the date of enactment of this Act, the Corporation shall
include, in each of the Corporation’s contracts for the insurance, guarantee, or reinsurance of obligations, and in each
document offering debt or equity securities of the Corporation, a prominent statement providing notice that—
(i) such obligations or such securities, as the case
may be, are not obligations of the United States, nor
are such obligations or such securities, as the case
may be, guaranteed in any way by the full faith and
credit of the United States; and
(ii) the Corporation is not an instrumentality of
the United States.
(B) ADDITIONAL NOTICE.—During the five-year period
following the sale of stock pursuant to subsection (c)(1),
in addition to the notice requirements in subparagraph
(A), the Corporation shall include, in each of the contracts
and documents referred to in such subparagraph, a prominent statement providing notice that the United States
is not an investor in the Corporation.
(2) CORPORATE CHARTER.—The Corporation’s charter shall
be amended as necessary and without delay to conform to
the requirements of this section.

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110 STAT. 3009–292

(3) CORPORATE NAME.—The name of the Corporation, or
of any direct or indirect subsidiary thereof, may not contain
the term ‘‘College Construction Loan Insurance Association’’,
or any substantially similar variation thereof.
(4) ARTICLES OF INCORPORATION.—The Corporation shall
amend the Corporation’s articles of incorporation without delay
to reflect that one of the purposes of the Corporation shall
be to guarantee, insure, and reinsure bonds, leases, and other
evidences of debt of educational institutions, including Historically Black Colleges and Universities and other academic
institutions which are ranked in the lower investment grade
category using a nationally recognized credit rating system.
(5) REQUIREMENTS UNTIL STOCK SALE.—Notwithstanding
subsection (d), the requirements of sections 754 and 760 of
the Higher Education Act of 1965 (20 U.S.C. 1132f–3 and
1132f–9), as such sections were in effect on the day before
the date of enactment of this Act, shall continue to be effective
until the day immediately following the date of closing of the
purchase of the Secretary of Education’s stock (or the date
of closing of the final purchase, in the case of multiple transactions) pursuant to subsection (c)(1) of this Act.
(c) SALE OF FEDERALLY OWNED STOCK.—
(1) PURCHASE BY THE CORPORATION.—The Secretary of the
Treasury shall sell and the Corporation shall purchase, within
90 days after the date of enactment of this Act, the stock
of the Corporation held by the Secretary of Education at a
price determined by the binding, independent appraisal of a
nationally recognized financial firm, except that the 90-day
period may be extended by mutual agreement of the Secretary
of the Treasury and the Corporation to not more than 150
days after the date of enactment of this Act. The appraiser
shall be jointly selected by the Secretary of the Treasury and
the Corporation. In the event that the Secretary of the Treasury
and the Corporation cannot agree on the appraiser, then the
Secretary of the Treasury and the Corporation shall name
an independent third party to select the appraiser.
(2) REIMBURSEMENT OF COSTS AND EXPENSES OF SALE.—
The Secretary of the Treasury shall be reimbursed from the
proceeds of the sale of the stock under this subsection for
all reasonable costs and expenses related to such sale, except
that one-half of all reasonable costs and expenses relating
to the independent appraisal under paragraph (1) shall be
borne by the Corporation.
(3) DEPOSIT INTO ACCOUNT.—Amounts collected from the
sale of stock pursuant to this subsection that are not used
to reimburse the Secretary of the Treasury pursuant to paragraph (2) shall be deposited into the account established under
subsection (e).
(4) ASSISTANCE BY THE CORPORATION.—The Corporation
shall provide such assistance as the Secretary of the Treasury
and the Secretary of Education may require to facilitate the
sale of the stock under this subsection.
(5) REPORT TO CONGRESS.—Not later than 6 months after
the date of enactment of this Act, the Secretary of the Treasury
shall report to the appropriate committees of Congress on the
completion and terms of the sale of stock of the Corporation
pursuant to this subsection.

110 STAT. 3009–293

PUBLIC LAW 104–208—SEPT. 30, 1996

(d) REPEAL OF
SIONS.—Part D of

STATUTORY RESTRICTIONS AND RELATED PROVItitle VII of the Higher Education Act of 1965
(20 U.S.C. 1132f et seq.) is repealed.
(e) ESTABLISHMENT OF ACCOUNT.—
(1) IN GENERAL.—Notwithstanding any other provision of
law, the District of Columbia Financial Responsibility and
Management Assistance Authority shall establish an account
to receive—
(A) amounts collected from the sale and proceeds
resulting from the exercise of stock warrants pursuant
to section 440(c)(9) of the Higher Education Act of 1965;
(B) amounts and proceeds remitted as compensation
for the right to assign the ‘‘Sallie Mae’’ name as a trademark or service mark pursuant to section 440(e)(3) of the
Higher Education Act of 1965; and
(C) amounts and proceeds collected from the sale of
the stock of the Corporation and deposited pursuant to
subsection (c)(3).
(2) AMOUNTS AND PROCEEDS.—
(A) AMOUNTS AND PROCEEDS RELATING TO SALLIE
MAE.—The amounts and proceeds described in subparagraphs (A) and (B) of paragraph (1) shall be used to finance
public elementary and secondary school facility construction and repair within the District of Columbia or to carry
out the District of Columbia School Reform Act of 1995.
(B) AMOUNTS AND PROCEEDS RELATING TO CONNIE
LEE.—The amounts and proceeds described in subparagraph (C) of paragraph (1) shall be used to finance public
elementary and secondary school facility construction and
repair within the District of Columbia.
SEC. 604. DISCRIMINATION IN SECONDARY MARKETS PROHIBITED.

Part B of title IV of the Higher Education Act of 1965 (20
U.S.C. 1071 et seq.) is amended by adding after section 440 (as
added by section 602) the following new section:
20 USC 1087–4.

‘‘SEC. 440A. DISCRIMINATION IN SECONDARY MARKETS PROHIBITED.

‘‘The Student Loan Marketing Association (and, if the Association is privatized under section 440, any successor entity functioning
as a secondary market for loans under this part, including the
Holding Company described in such section) shall not engage
directly or indirectly in any pattern or practice that results in
a denial of a borrower’s access to loans under this part because
of the borrower’s race, sex, color, religion, national origin, age,
disability status, income, attendance at a particular eligible institution, length of the borrower’s educational program, or the borrower’s
academic year at an eligible institution.’’.
Museum and
Library Services
Act of 1996.
20 USC 9101
note.

TITLE VII—MUSEUM AND LIBRARY SERVICES ACT OF 1996
SECTION 701. SHORT TITLE.

This title may be cited as the ‘‘Museum and Library Services
Act of 1996’’.
SEC. 702. MUSEUM AND LIBRARY SERVICES.

The Museum Services Act (20 U.S.C. 961 et seq.) is amended
to read as follows:

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–294

‘‘TITLE II—MUSEUM AND LIBRARY SERVICES

‘‘Subtitle A—General Provisions
‘‘SEC. 201. SHORT TITLE.

‘‘This title may be cited as the ‘Museum and Library Services
Act’.
‘‘SEC. 202. GENERAL DEFINITIONS.

Museum and
Library Services
Act.
20 USC 9101
note.

20 USC 9101.

‘‘As used in this title:
‘‘(1) COMMISSION.—The term ‘Commission’ means the
National Commission on Libraries and Information Science
established under section 3 of the National Commission on
Libraries and Information Sciences Act (20 U.S.C. 1502).
‘‘(2) DIRECTOR.—The term ‘Director’ means the Director
of the Institute appointed under section 204.
‘‘(3) INSTITUTE.—The term ‘Institute’ means the Institute
of Museum and Library Services established under section 203.
‘‘(4) MUSEUM BOARD.—The term ‘Museum Board’ means
the National Museum Services Board established under section
275.
‘‘SEC. 203. INSTITUTE OF MUSEUM AND LIBRARY SERVICES.

20 USC 9102.

‘‘(a) ESTABLISHMENT.—There is established, within the National
Foundation on the Arts and the Humanities, an Institute of Museum
and Library Services.
‘‘(b) OFFICES.—The Institute shall consist of an Office of
Museum Services and an Office of Library Services. There shall
be a National Museum Services Board in the Office of Museum
Services.
‘‘SEC. 204. DIRECTOR OF THE INSTITUTE.

‘‘(a) APPOINTMENT.—
‘‘(1) IN GENERAL.—The Institute shall be headed by a Director, appointed by the President, by and with the advice and
consent of the Senate.
‘‘(2) TERM.—The Director shall serve for a term of 4 years.
‘‘(3) QUALIFICATIONS.—Beginning with the first individual
appointed to the position of Director after the date of enactment
of the Museum and Library Services Act of 1996, every second
individual so appointed shall be appointed from among individuals who have special competence with regard to library and
information services. Beginning with the second individual
appointed to the position of Director after the date of enactment
of the Museum and Library Services Act of 1996, every second
individual so appointed shall be appointed from among individuals who have special competence with regard to museum
services.
‘‘(b) COMPENSATION.—The Director may be compensated at the
rate provided for level III of the Executive Schedule under section
5314 of title 5, United States Code.
‘‘(c) DUTIES AND POWERS.—The Director shall perform such
duties and exercise such powers as may be prescribed by law,
including awarding financial assistance for activities described in
this title.
‘‘(d) NONDELEGATION.—The Director shall not delegate any of
the functions of the Director to any person who is not an officer
or employee of the Institute.

20 USC 9103.

110 STAT. 3009–295

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(e) COORDINATION.—The Director shall ensure coordination
of the policies and activities of the Institute with the policies
and activities of other agencies and offices of the Federal
Government having interest in and responsibilities for the improvement of museums and libraries and information services.
20 USC 9104.

‘‘SEC. 205. DEPUTY DIRECTORS.

‘‘The Office of Library Services shall be headed by a Deputy
Director, who shall be appointed by the Director from among
individuals who have a graduate degree in library science and
expertise in library and information services. The Office of Museum
Services shall be headed by a Deputy Director, who shall be
appointed by the Director from among individuals who have expertise in museum services.
20 USC 9105.

‘‘SEC. 206. PERSONNEL.

‘‘(a) IN GENERAL.—The Director may, in accordance with
applicable provisions of title 5, United States Code, appoint and
determine the compensation of such employees as the Director
determines to be necessary to carry out the duties of the Institute.
‘‘(b) VOLUNTARY SERVICES.—The Director may accept and utilize
the voluntary services of individuals and reimburse the individuals
for travel expenses, including per diem in lieu of subsistence, in
the same amounts and to the same extent as authorized under
section 5703 of title 5, United States Code, for persons employed
intermittently in Federal Government service.
20 USC 9106.

‘‘SEC. 207. CONTRIBUTIONS.

‘‘The Institute is authorized to solicit, accept, receive, and invest
in the name of the United States, gifts, bequests, or devises of
money and other property or services and to use such property
or services in furtherance of the functions of the Institute. Any
proceeds from such gifts, bequests, or devises, after acceptance
by the Institute, shall be paid by the donor or the representative
of the donor to the Director. The Director shall enter the proceeds
in a special-interest bearing account to the credit of the Institute
for the purposes specified in each case.

‘‘Subtitle B—Library Services and Technology

Library Services
and Technology
Act.
20 USC 9101
note.

‘‘SEC. 211. SHORT TITLE.

20 USC 9121.

‘‘SEC. 212. PURPOSE.

‘‘This subtitle may be cited as the ‘Library Services and Technology Act’.
‘‘It is the purpose of this subtitle—
‘‘(1) to consolidate Federal library service programs;
‘‘(2) to stimulate excellence and promote access to learning
and information resources in all types of libraries for individuals of all ages;
‘‘(3) to promote library services that provide all users access
to information through State, regional, national and international electronic networks;
‘‘(4) to provide linkages among and between libraries; and
‘‘(5) to promote targeted library services to people of diverse
geographic, cultural, and socioeconomic backgrounds, to individuals with disabilities, and to people with limited functional
literacy or information skills.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–296

‘‘SEC. 213. DEFINITIONS.

20 USC 9122.

‘‘As used in this subtitle:
‘‘(1) INDIAN TRIBE.—The term ‘Indian tribe’ means any
tribe, band, nation, or other organized group or community,
including any Alaska native village, regional corporation, or
village corporation, as defined in or established pursuant to
the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et
seq.), which is recognized by the Secretary of the Interior as
eligible for the special programs and services provided by the
United States to Indians because of their status as Indians.
‘‘(2) LIBRARY.—The term ‘library’ includes—
‘‘(A) a public library;
‘‘(B) a public elementary school or secondary school
library;
‘‘(C) an academic library;
‘‘(D) a research library, which for the purposes of this
subtitle means a library that—
‘‘(i) makes publicly available library services and
materials suitable for scholarly research and not otherwise available to the public; and
‘‘(ii) is not an integral part of an institution of
higher education; and
‘‘(E) a private library, but only if the State in which
such private library is located determines that the library
should be considered a library for purposes of this subtitle.
‘‘(3) LIBRARY CONSORTIUM.—The term ‘library consortium’
means any local, statewide, regional, interstate, or international
cooperative association of library entities which provides for
the systematic and effective coordination of the resources of
school, public, academic, and special libraries and information
centers, for improved services for the clientele of such library
entities.
‘‘(4) STATE.—The term ‘State’, unless otherwise specified,
includes each of the 50 States of the United States, the District
of Columbia, the Commonwealth of Puerto Rico, the United
States Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, the Republic of the
Marshall Islands, the Federated States of Micronesia, and the
Republic of Palau.
‘‘(5) STATE LIBRARY ADMINISTRATIVE AGENCY.—The term
‘State library administrative agency’ means the official agency
of a State charged by the law of the State with the extension
and development of public library services throughout the State.
‘‘(6) STATE PLAN.—The term ‘State plan’ means the document which gives assurances that the officially designated State
library administrative agency has the fiscal and legal authority
and capability to administer all aspects of this subtitle, provides
assurances for establishing the State’s policies, priorities, criteria, and procedures necessary to the implementation of all
programs under this subtitle, submits copies for approval as
required by regulations promulgated by the Director, identifies
a State’s library needs, and sets forth the activities to be
taken toward meeting the identified needs supported with the
assistance of Federal funds made available under this subtitle.
‘‘SEC. 214. AUTHORIZATION OF APPROPRIATIONS.

‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—

20 USC 9123.

110 STAT. 3009–297

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(1) IN GENERAL.—There are authorized to be appropriated
$150,000,000 for fiscal year 1997 and such sums as may be
necessary for each of the fiscal years 1998 through 2002 to
carry out this subtitle.
‘‘(2) TRANSFER.—The Secretary of Education shall—
‘‘(A) transfer promptly to the Director any funds appropriated under the authority of paragraph (1), to enable
the Director to carry out this subtitle; and
‘‘(B) not exercise any authority concerning the administration of this title other than the transfer described in
subparagraph (A).
‘‘(b) FORWARD FUNDING.—
‘‘(1) IN GENERAL.—To the end of affording the responsible
Federal, State, and local officers adequate notice of available
Federal financial assistance for carrying out ongoing library
activities and projects, appropriations for grants, contracts, or
other payments under any program under this subtitle are
authorized to be included in the appropriations Act for the
fiscal year preceding the fiscal year during which such activities
and projects shall be carried out.
‘‘(2) ADDITIONAL AUTHORIZATION OF APPROPRIATIONS.—In
order to effect a transition to the timing of appropriation action
authorized by subsection (a), the application of this section
may result in the enactment, in a fiscal year, of separate
appropriations for a program under this subtitle (whether in
the same appropriations Act or otherwise) for two consecutive
fiscal years.
‘‘(c) ADMINISTRATION.—Not more than 3 percent of the funds
appropriated under this section for a fiscal year may be used
to pay for the Federal administrative costs of carrying out this
subtitle.
‘‘CHAPTER 1—BASIC PROGRAM REQUIREMENTS
20 USC 9131.

‘‘SEC. 221. RESERVATIONS AND ALLOTMENTS.

‘‘(a) RESERVATIONS.—
‘‘(1) IN GENERAL.—From the amount appropriated under
the authority of section 214 for any fiscal year, the Director—
‘‘(A) shall reserve 11⁄2 percent to award grants in
accordance with section 261; and
‘‘(B) shall reserve 4 percent to award national leadership grants or contracts in accordance with section 262.
‘‘(2) SPECIAL RULE.—If the funds reserved pursuant to paragraph (1)(B) for a fiscal year have not been obligated by the
end of such fiscal year, then such funds shall be allotted in
accordance with subsection (b) for the fiscal year succeeding
the fiscal year for which the funds were so reserved.
‘‘(b) ALLOTMENTS.—
‘‘(1) IN GENERAL.—From the sums appropriated under the
authority of section 214 and not reserved under subsection
(a) for any fiscal year, the Director shall award grants from
minimum allotments, as determined under paragraph (3), to
each State. Any sums remaining after minimum allotments
are made for such year shall be allotted in the manner set
forth in paragraph (2).
‘‘(2) REMAINDER.—From the remainder of any sums appropriated under the authority of section 214 that are not reserved

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–298

under subsection (a) and not allotted under paragraph (1) for
any fiscal year, the Director shall award grants to each State
in an amount that bears the same relation to such remainder
as the population of the State bears to the population of all
States.
‘‘(3) MINIMUM ALLOTMENT.—
‘‘(A) IN GENERAL.—For the purposes of this subsection,
the minimum allotment for each State shall be $340,000,
except that the minimum allotment shall be $40,000 in
the case of the United States Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana
Islands, the Republic of the Marshall Islands, the Federated
States of Micronesia, and the Republic of Palau.
‘‘(B) RATABLE REDUCTIONS.—If the sum appropriated
under the authority of section 214 and not reserved under
subsection (a) for any fiscal year is insufficient to fully
satisfy the aggregate of the minimum allotments for all
States for that purpose for such year, each of such minimum allotments shall be reduced ratably.
‘‘(C) SPECIAL RULE.—
‘‘(i) IN GENERAL.—Notwithstanding any other
provision of this subsection and using funds allotted
for the Republic of the Marshall Islands, the Federated
States of Micronesia, and the Republic of Palau under
this subsection, the Director shall award grants to
Guam, American Samoa, the Commonwealth of the
Northern Mariana Islands, the Republic of the Marshall Islands, the Federated States of Micronesia, or
the Republic of Palau to carry out activities described
in this subtitle in accordance with the provisions of
this subtitle that the Director determines are not
inconsistent with this subparagraph.
‘‘(ii) AWARD BASIS.—The Director shall award
grants pursuant to clause (i) on a competitive basis
and pursuant to recommendations from the Pacific
Region Educational Laboratory in Honolulu, Hawaii.
‘‘(iii) TERMINATION OF ELIGIBILITY.—Notwithstanding any other provision of law, the Republic of the
Marshall Islands, the Federated States of Micronesia,
and the Republic of Palau shall not receive any funds
under this subtitle for any fiscal year that begins after
September 30, 2001.
‘‘(iv) ADMINISTRATIVE COSTS.—The Director may
provide not more than 5 percent of the funds made
available for grants under this subparagraph to pay
the administrative costs of the Pacific Region Educational Laboratory regarding activities assisted under
this subparagraph.
‘‘(4) DATA.—The population of each State and of all the
States shall be determined by the Director on the basis of
the most recent data available from the Bureau of the Census.
‘‘SEC. 222. ADMINISTRATION.

‘‘(a) IN GENERAL.—Not more than 4 percent of the total amount
of funds received under this subtitle for any fiscal year by a State
may be used for administrative costs.

20 USC 9132.

110 STAT. 3009–299

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(b) CONSTRUCTION.—Nothing in this section shall be construed
to limit spending for evaluation costs under section 224(c) from
sources other than this subtitle.
20 USC 9133.

‘‘SEC. 223. PAYMENTS; FEDERAL SHARE; AND MAINTENANCE OF
EFFORT REQUIREMENTS.

‘‘(a) PAYMENTS.—Subject to appropriations provided pursuant
to section 214, the Director shall pay to each State library administrative agency having a State plan approved under section 224
the Federal share of the cost of the activities described in the
State plan.
‘‘(b) FEDERAL SHARE.—
‘‘(1) IN GENERAL.—The Federal share shall be 66 percent.
‘‘(2) NON-FEDERAL SHARE.—The non-Federal share of payments shall be provided from non-Federal, State, or local
sources.
‘‘(c) MAINTENANCE OF EFFORT.—
‘‘(1) STATE EXPENDITURES.—
‘‘(A) REQUIREMENT.—
‘‘(i) IN GENERAL.—The amount otherwise payable
to a State for a fiscal year pursuant to an allotment
under this chapter shall be reduced if the level of
State expenditures, as described in paragraph (2), for
the previous fiscal year is less than the average of
the total of such expenditures for the 3 fiscal years
preceding that previous fiscal year. The amount of
the reduction in allotment for any fiscal year shall
be equal to the amount by which the level of such
State expenditures for the fiscal year for which the
determination is made is less than the average of
the total of such expenditures for the 3 fiscal years
preceding the fiscal year for which the determination
is made.
‘‘(ii) CALCULATION.—Any decrease in State
expenditures resulting from the application of subparagraph (B) shall be excluded from the calculation of
the average level of State expenditures for any 3-year
period described in clause (i).
‘‘(B) DECREASE IN FEDERAL SUPPORT.—If the amount
made available under this subtitle for a fiscal year is less
than the amount made available under this subtitle for
the preceding fiscal year, then the expenditures required
by subparagraph (A) for such preceding fiscal year shall
be decreased by the same percentage as the percentage
decrease in the amount so made available.
‘‘(2) LEVEL OF STATE EXPENDITURES.—The level of State
expenditures for the purposes of paragraph (1) shall include
all State dollars expended by the State library administrative
agency for library programs that are consistent with the purposes of this subtitle. All funds included in the maintenance
of effort calculation under this subsection shall be expended
during the fiscal year for which the determination is made,
and shall not include capital expenditures, special one-time
project costs, or similar windfalls.
‘‘(3) WAIVER.—The Director may waive the requirements
of paragraph (1) if the Director determines that such a waiver

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–300

would be equitable due to exceptional or uncontrollable circumstances such as a natural disaster or a precipitous and
unforeseen decline in the financial resources of the State.
‘‘SEC. 224. STATE PLANS.

‘‘(a) STATE PLAN REQUIRED.—
‘‘(1) IN GENERAL.—In order to be eligible to receive a grant
under this subtitle, a State library administrative agency shall
submit a State plan to the Director not later than April 1,
1997.
‘‘(2) DURATION.—The State plan shall cover a period of
5 fiscal years.
‘‘(3) REVISIONS.—If a State library administrative agency
makes a substantive revision to its State plan, then the State
library administrative agency shall submit to the Director an
amendment to the State plan containing such revision not
later than April 1 of the fiscal year preceding the fiscal year
for which the amendment will be effective.
‘‘(b) CONTENTS.—The State plan shall—
‘‘(1) establish goals, and specify priorities, for the State
consistent with the purposes of this subtitle;
‘‘(2) describe activities that are consistent with the goals
and priorities established under paragraph (1), the purposes
of this subtitle, and section 231, that the State library administrative agency will carry out during such year using such
grant;
‘‘(3) describe the procedures that such agency will use
to carry out the activities described in paragraph (2);
‘‘(4) describe the methodology that such agency will use
to evaluate the success of the activities established under paragraph (2) in achieving the goals and meeting the priorities
described in paragraph (1);
‘‘(5) describe the procedures that such agency will use
to involve libraries and library users throughout the State
in policy decisions regarding implementation of this subtitle;
and
‘‘(6) provide assurances satisfactory to the Director that
such agency will make such reports, in such form and containing such information, as the Director may reasonably require
to carry out this subtitle and to determine the extent to which
funds provided under this subtitle have been effective in carrying out the purposes of this subtitle.
‘‘(c) EVALUATION AND REPORT.—Each State library administrative agency receiving a grant under this subtitle shall independently
evaluate, and report to the Director regarding, the activities assisted
under this subtitle, prior to the end of the 5-year plan.
‘‘(d) INFORMATION.—Each library receiving assistance under
this subtitle shall submit to the State library administrative agency
such information as such agency may require to meet the requirements of subsection (c).
‘‘(e) APPROVAL.—
‘‘(1) IN GENERAL.—The Director shall approve any State
plan under this subtitle that meets the requirements of this
subtitle and provides satisfactory assurances that the provisions
of such plan will be carried out.

20 USC 9134.

110 STAT. 3009–301

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(2) PUBLIC AVAILABILITY.—Each State library administrative agency receiving a grant under this subtitle shall make
the State plan available to the public.
‘‘(3) ADMINISTRATION.—If the Director determines that the
State plan does not meet the requirements of this section,
the Director shall—
‘‘(A) immediately notify the State library administrative agency of such determination and the reasons for
such determination;
‘‘(B) offer the State library administrative agency the
opportunity to revise its State plan;
‘‘(C) provide technical assistance in order to assist the
State library administrative agency in meeting the requirements of this section; and
‘‘(D) provide the State library administrative agency
the opportunity for a hearing.
‘‘CHAPTER 2—LIBRARY PROGRAMS
20 USC 9141.

‘‘SEC. 231. GRANTS TO STATES.

‘‘(a) IN GENERAL.—Of the funds provided to a State library
administrative agency under section 214, such agency shall expend,
either directly or through subgrants or cooperative agreements,
at least 96 percent of such funds for—
‘‘(1)(A) establishing or enhancing electronic linkages among
or between libraries;
‘‘(B) electronically linking libraries with educational, social,
or information services;
‘‘(C) assisting libraries in accessing information through
electronic networks;
‘‘(D) encouraging libraries in different areas, and encouraging different types of libraries, to establish consortia and share
resources; or
‘‘(E) paying costs for libraries to acquire or share computer
systems and telecommunications technologies; and
‘‘(2) targeting library and information services to persons
having difficulty using a library and to underserved urban
and rural communities, including children (from birth through
age 17) from families with incomes below the poverty line
(as defined by the Office of Management and Budget and
revised annually in accordance with section 673(2) of the
Community Services Block Grant Act (42 U.S.C. 9902(2))
applicable to a family of the size involved.
‘‘(b) SPECIAL RULE.—Each State library administrative agency
receiving funds under this chapter may apportion the funds available for the purposes described in subsection (a) between the two
purposes described in paragraphs (1) and (2) of such subsection,
as appropriate, to meet the needs of the individual State.
‘‘CHAPTER 3—ADMINISTRATIVE PROVISIONS
‘‘Subchapter A—State Requirements
20 USC 9151.

‘‘SEC. 251. STATE ADVISORY COUNCILS.

‘‘Each State desiring assistance under this subtitle may establish a State advisory council which is broadly representative of
the library entities in the State, including public, school, academic,

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–302

special, and institutional libraries, and libraries serving individuals
with disabilities.
‘‘Subchapter B—Federal Requirements
‘‘SEC. 261. SERVICES FOR INDIAN TRIBES.

20 USC 9161.

‘‘From amounts reserved under section 221(a)(1)(A) for any
fiscal year the Director shall award grants to organizations primarily serving and representing Indian tribes to enable such
organizations to carry out the activities described in section 231.
‘‘SEC. 262. NATIONAL LEADERSHIP GRANTS OR CONTRACTS.

20 USC 9162.

‘‘(a) IN GENERAL.—From the amounts reserved under section
221(a)(1)(B) for any fiscal year the Director shall establish and
carry out a program awarding national leadership grants or contracts to enhance the quality of library services nationwide and
to provide coordination between libraries and museums. Such grants
or contracts shall be used for activities that may include—
‘‘(1) education and training of persons in library and
information science, particularly in areas of new technology
and other critical needs, including graduate fellowships,
traineeships, institutes, or other programs;
‘‘(2) research and demonstration projects related to the
improvement of libraries, education in library and information
science, enhancement of library services through effective and
efficient use of new technologies, and dissemination of information derived from such projects;
‘‘(3) preservation of digitization of library materials and
resources, giving priority to projects emphasizing coordination,
avoidance of duplication, and access by researchers beyond
the institution or library entity undertaking the project; and
‘‘(4) model programs demonstrating cooperative efforts
between libraries and museums.
‘‘(b) GRANTS OR CONTRACTS.—
‘‘(1) IN GENERAL.—The Director may carry out the activities
described in subsection (a) by awarding grants to, or entering
into contracts with, libraries, agencies, institutions of higher
education, or museums, where appropriate.
‘‘(2) COMPETITIVE BASIS.—Grants and contracts under this
section shall be awarded on a competitive basis.
‘‘(c) SPECIAL RULE.—The Director shall make every effort
to ensure that activities assisted under this section are administered
by appropriate library and museum professionals or experts.
‘‘SEC. 263. STATE AND LOCAL INITIATIVES.

20 USC 9163.

‘‘Nothing in this subtitle shall be construed to interfere with
State and local initiatives and responsibility in the conduct of
library services. The administration of libraries, the selection of
personnel and library books and materials, and insofar as consistent
with the purposes of this subtitle, the determination of the best
uses of the funds provided under this subtitle, shall be reserved
for the States and their local subdivisions.
‘‘Subtitle C—Museum Services
‘‘SEC. 271. PURPOSE.

‘‘It is the purpose of this subtitle—

20 USC 9171.

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‘‘(1) to encourage and assist museums in their educational
role, in conjunction with formal systems of elementary, secondary, and postsecondary education and with programs of nonformal education for all age groups;
‘‘(2) to assist museums in modernizing their methods and
facilities so that the museums are better able to conserve
the cultural, historic, and scientific heritage of the United
States; and
‘‘(3) to ease the financial burden borne by museums as
a result of their increasing use by the public.
20 USC 9172.

‘‘SEC. 272. DEFINITIONS.

‘‘As used in this subtitle:
‘‘(1) MUSEUM.—The term ‘museum’ means a public or private nonprofit agency or institution organized on a permanent
basis for essentially educational or aesthetic purposes, that
utilizes a professional staff, owns or utilizes tangible objects,
cares for the tangible objects, and exhibits the tangible objects
to the public on a regular basis.
‘‘(2) STATE.—The term ‘State’ means each of the 50 States
of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam,
American Samoa, the Commonwealth of the Northern Mariana
Islands, the Republic of the Marshall Islands, the Federated
States of Micronesia, and the Republic of Palau.
20 USC 9173.

‘‘SEC. 273. MUSEUM SERVICES ACTIVITIES.

‘‘(a) GRANTS.—The Director, subject to the policy direction
of the Museum Board, may make grants to museums to pay for
the Federal share of the cost of increasing and improving museum
services, through such activities as—
‘‘(1) programs that enable museums to construct or install
displays, interpretations, and exhibitions in order to improve
museum services provided to the public;
‘‘(2) assisting museums in developing and maintaining
professionally trained or otherwise experienced staff to meet
the needs of the museums;
‘‘(3) assisting museums in meeting the administrative costs
of preserving and maintaining the collections of the museums,
exhibiting the collections to the public, and providing educational programs to the public through the use of the collections;
‘‘(4) assisting museums in cooperating with each other in
developing traveling exhibitions, meeting transportation costs,
and identifying and locating collections available for loan;
‘‘(5) assisting museums in the conservation of their collections;
‘‘(6) developing and carrying out specialized programs for
specific segments of the public, such as programs for urban
neighborhoods, rural areas, Indian reservations, and penal and
other State institutions; and
‘‘(7) model programs demonstrating cooperative efforts
between libraries and museums.
‘‘(b) CONTRACTS AND COOPERATIVE AGREEMENTS.—
‘‘(1) PROJECTS TO STRENGTHEN MUSEUM SERVICES.—The
Director, subject to the policy direction of the Museum Board,
is authorized to enter into contracts and cooperative agreements
with appropriate entities, as determined by the Director, to

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–304

pay for the Federal share of enabling the entities to undertake
projects designed to strengthen museum services, except that
any contracts or cooperative agreements entered into pursuant
to this subsection shall be effective only to such extent or
in such amounts as are provided in appropriations Acts.
‘‘(2) LIMITATION ON AMOUNT.—The aggregate amount of
financial assistance made available under this subsection for
a fiscal year shall not exceed 15 percent of the amount appropriated under this subtitle for such fiscal year.
‘‘(3) OPERATIONAL EXPENSES.—No financial assistance may
be provided under this subsection to pay for operational
expenses.
‘‘(c) FEDERAL SHARE.—
‘‘(1) 50 PERCENT.—Except as provided in paragraph (2),
the Federal share described in subsection (a) and (b) shall
be not more than 50 percent.
‘‘(2) GREATER THAN 50 PERCENT.—The Director may use
not more than 20 percent of the funds made available under
this subtitle for a fiscal year to make grants under subsection
(a), or enter into contracts or agreements under subsection
(b), for which the Federal share may be greater than 50 percent.
‘‘(d) REVIEW AND EVALUATION.—The Director shall establish
procedures for reviewing and evaluating grants, contracts, and
cooperative agreements made or entered into under this subtitle. Procedures for reviewing grant applications or contracts
and cooperative agreements for financial assistance under this
subtitle shall not be subject to any review outside of the
Institute.
‘‘SEC. 274. AWARD.

20 USC 9174.

‘‘The Director, with the advice of the Museum Board, may
annually award a National Award for Museum Service to outstanding museums that have made significant contributions in service
to their communities.
‘‘SEC. 275. NATIONAL MUSEUM SERVICES BOARD.

‘‘(a) ESTABLISHMENT.—There is established in the Institute a
National Museum Services Board.
‘‘(b) COMPOSITION AND QUALIFICATIONS.—
‘‘(1) COMPOSITION.—The Museum Board shall consist of
the Director and 14 members appointed by the President, by
and with the advice and consent of the Senate.
‘‘(2) QUALIFICATIONS.—The appointive members of the
Museum Board shall be selected from among citizens of the
United States—
‘‘(A) who are members of the general public;
‘‘(B) who are or have been affiliated with—
‘‘(i) resources that, collectively, are broadly representative of the curatorial, conservation, educational,
and cultural resources of the United States; or
‘‘(ii) museums that, collectively, are broadly representative of various types of museums, including
museums relating to science, history, technology, art,
zoos, and botanical gardens; and
‘‘(C) who are recognized for their broad knowledge,
expertise, or experience in museums or commitment to
museums.

20 USC 9175.

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PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(3) GEOGRAPHIC AND OTHER REPRESENTATION.—Members
of the Museum Board shall be appointed to reflect persons
from various geographic regions of the United States. The
Museum Board may not include, at any time, more than 3
members from a single State. In making such appointments,
the President shall give due regard to equitable representation
of women, minorities, and persons with disabilities who are
involved with museums.
‘‘(c) TERMS.—
‘‘(1) IN GENERAL.—Each appointive member of the Museum
Board shall serve for a term of 5 years, except that—
‘‘(A) of the members first appointed, 3 shall serve for
terms of 5 years, 3 shall serve for terms of 4 years, 3
shall serve for terms of 3 years, 3 shall serve for terms
of 2 years, and 2 shall serve for terms of 1 year, as designated by the President at the time of nomination for
appointment; and
‘‘(B) any member appointed to fill a vacancy shall
serve for the remainder of the term for which the predecessor of the member was appointed.
‘‘(2) REAPPOINTMENT.—No member of the Museum Board
who has been a member for more than 7 consecutive years
shall be eligible for reappointment.
‘‘(3) SERVICE UNTIL SUCCESSOR TAKES OFFICE.—Notwithstanding any other provision of this subsection, a member
of the Museum Board shall serve after the expiration of the
term of the member until the successor to the member takes
office.
‘‘(d) DUTIES AND POWERS.—The Museum Board shall have the
responsibility to advise the Director on general policies with respect
to the duties, powers, and authority of the Institute relating to
museum services, including general policies with respect to—
‘‘(1) financial assistance awarded under this subtitle for
museum services; and
‘‘(2) projects described in section 262(a)(4).
‘‘(e) CHAIRPERSON.—The President shall designate 1 of the
appointive members of the Museum Board as Chairperson of the
Museum Board.
‘‘(f) MEETINGS.—
‘‘(1) IN GENERAL.—The Museum Board shall meet—
‘‘(A) not less than 3 times each year, including—
‘‘(i) not less than 2 times each year separately;
and
‘‘(ii) not less than 1 time each year in a joint
meeting with the Commission, convened for purposes
of making general policies with respect to financial
assistance for projects described in section 262(a)(4);
and
‘‘(B) at the call of the Director.
‘‘(2) VOTE.—All decisions by the Museum Board with
respect to the exercise of the duties and powers of the Museum
Board shall be made by a majority vote of the members of
the Museum Board who are present. All decisions by the
Commission and the Museum Board with respect to the policies
described in paragraph (1)(A)(ii) shall be made by a 2⁄3 majority
vote of the total number of the members of the Commission
and the Museum Board who are present.

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110 STAT. 3009–306

‘‘(g) QUORUM.—A majority of the members of the Museum Board
shall constitute a quorum for the conduct of business at official
meetings of the Museum Board, but a lesser number of members
may hold hearings. A majority of the members of the Commission
and a majority of the members of the Museum Board shall constitute a quorum for the conduct of business at official joint meetings
of the Commission and the Museum Board.
‘‘(h) COMPENSATION AND TRAVEL EXPENSES.—
‘‘(1) COMPENSATION.—Each member of the Museum Board
who is not an officer or employee of the Federal Government
may be compensated at a rate to be fixed by the President,
but not to exceed the daily equivalent of the maximum rate
authorized for a position above grade GS–15 of the General
Schedule under section 5108 of title 5, United States Code,
for each day (including travel time) during which such member
is engaged in the performance of the duties of the Museum
Board. All members of the Museum Board who are officers
or employees of the Federal Government shall serve without
compensation in addition to compensation received for their
services as officers or employees of the Federal Government.
‘‘(2) TRAVEL EXPENSES.—The members of the Museum
Board may be allowed travel expenses, including per diem
in lieu of subsistence, in the same amounts and to the same
extent, as authorized under section 5703 of title 5, United
States Code, for persons employed intermittently in Federal
Government service.
‘‘(i) COORDINATION.—The Museum Board, with the advice of
the Director, shall take steps to ensure that the policies and activities of the Institute are coordinated with other activities of the
Federal Government.
‘‘SEC. 276. AUTHORIZATION OF APPROPRIATIONS.

‘‘(a) GRANTS.—For the purpose of carrying out this subtitle,
there are authorized to be appropriated to the Director $28,700,000
for the fiscal year 1997, and such sums as may be necessary
for each of the fiscal years 1998 through 2002.
‘‘(b) ADMINISTRATION.—Not more than 10 percent of the funds
appropriated under this section for a fiscal year may be used
to pay for the administrative costs of carrying out this subtitle.
‘‘(c) SUMS REMAINING AVAILABLE.—Sums appropriated pursuant
to subsection (a) for any fiscal year shall remain available for
obligation until expended.’’.
SEC. 703. NATIONAL COMMISSION ON LIBRARIES AND INFORMATION
SCIENCE.

(a) FUNCTIONS.—Section 5 of the National Commission on
Libraries and Information Science Act (20 U.S.C. 1504) is amended—
(1) by redesignating subsections (b) through (d) as subsections (d) through (f), respectively; and
(2) by inserting after subsection (a) the following:
‘‘(b) The Commission shall have the responsibility to advise
the Director of the Institute of Museum and Library Services on
general policies with respect to the duties, powers, and authority
of the Institute of Museum and Library Services relating to library
services, including—
‘‘(1) general policies with respect to—

20 USC 9176.

110 STAT. 3009–307

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(A) financial assistance awarded under the Museum
and Library Services Act for library services; and
‘‘(B) projects described in section 262(a)(4) of such Act;
and
‘‘(2) measures to ensure that the policies and activities
of the Institute of Museum and Library Services are coordinated
with other activities of the Federal Government.
‘‘(c)(1) The Commission shall meet not less than 1 time each
year in a joint meeting with the National Museum Services Board,
convened for purposes of providing advice on general policy with
respect to financial assistance for projects described in section
262(a)(4) of such Act.
‘‘(2) All decisions by the Commission and the National Museum
Services Board with respect to the advice on general policy described
in paragraph (1) shall be made by a 2⁄3 majority vote of the total
number of the members of the Commission and the National
Museum Services Board who are present.
‘‘(3) A majority of the members of the Commission and a majority of the members of the National Museum Services Board shall
constitute a quorum for the conduct of business at official joint
meetings of the Commission and the National Museum Services
Board.’’.
(b) MEMBERSHIP.—Section 6 of the National Commission on
Libraries and Information Science Act (20 U.S.C. 1505) is amended—
(1) in subsection (a)—
(A) in the first sentence, by striking ‘‘Librarian of Congress’’ and inserting ‘‘Librarian of Congress, the Director
of the Institute of Museum and Library Services (who
shall serve as an ex officio, nonvoting member),’’;
(B) in the second sentence—
(i) by striking ‘‘special competence or interest in’’
and inserting ‘‘special competence in or knowledge of;
and
(ii) by inserting before the period the following:
‘‘and at least one other of whom shall be knowledgeable
with respect to the library and information service
and science needs of the elderly’’;
(C) in the third sentence, by inserting ‘‘appointive’’
before ‘‘members’’; and
(D) in the last sentence, by striking ‘‘term and at
least’’ and all that follows and inserting ‘‘term.’’; and
(2) in subsection (b), by striking ‘‘the rate specified’’ and
all that follows through ‘‘and while’’ and inserting ‘‘the daily
equivalent of the maximum rate authorized for a position above
grade GS–15 of the General Schedule under section 5108 of
title 5, United States Code, for each day (including traveltime) during which the members are engaged in the business
of the Commission. While’’.
20 USC 9102
note.

SEC. 704. TRANSFER OF FUNCTIONS FROM INSTITUTE OF MUSEUM
SERVICES.

(a) DEFINITIONS.—For purposes of this section, unless otherwise
provided or indicated by the context—
(1) the term ‘‘Federal agency’’ has the meaning given to
the term ‘‘agency’’ by section 551(1) of title 5, United States
Code;

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110 STAT. 3009–308

(2) the term ‘‘function’’ means any duty, obligation, power,
authority, responsibility, right, privilege, activity, or program;
and
(3) the term ‘‘office’’ includes any office, administration,
agency, institute, unit, organizational entity, or component
thereof.
(b) TRANSFER OF FUNCTIONS FROM THE INSTITUTE OF MUSEUM
SERVICES AND THE LIBRARY PROGRAM OFFICE.—There are transferred to the Director of the Institute of Museum and Library
Services established under section 203 of the Museum and Library
Services Act—
(1) all functions that the Director of the Institute of
Museum Services exercised before the date of enactment of
this section (including all related functions of any officer or
employee of the Institute of Museum Services); and
(2) all functions that the Director of Library Programs
in the Office of Educational Research and Improvement in
the Department of Education exercised before the date of enactment of this section and any related function of any officer
or employee of the Department of Education.
(c) DETERMINATIONS OF CERTAIN FUNCTIONS BY THE OFFICE
OF MANAGEMENT AND BUDGET.—If necessary, the Office of Management and Budget shall make any determination of the functions
that are transferred under subsection (b).
(d) DELEGATION AND ASSIGNMENT.—Except where otherwise
expressly prohibited by law or otherwise provided by this section,
the Director of the Institute of Museum and Library Services may
delegate any of the functions transferred to the Director of the
Institute of Museum and Library Services by this section and any
function transferred or granted to such Director of the Institute
of Museum and Library Services after the effective date of this
section to such officers and employees of the Institute of Museum
and Library Services as the Director of the Institute of Museum
and Library Services may designate, and may authorize successive
redelegations of such functions as may be necessary or appropriate,
except that any delegation of any such functions with respect to
libraries shall be made to the Deputy Director of the Office of
Library Services and with respect to museums shall be made to
the Deputy Director of the Office of Museum Services. No delegation
of functions by the Director of the Institute of Museum and Library
Services under this section or under any other provision of this
section shall relieve such Director of the Institute of Museum and
Library Services of responsibility for the administration of such
functions.
(e) REORGANIZATION.—The Director of the Institute of Museum
and Library Services may allocate or reallocate any function transferred under subsection (b) among the officers of the Institute
of Museum and Library Services, and may establish, consolidate,
alter, or discontinue such organizational entities in the Institute
of Museum and Library Services as may be necessary or appropriate.
(f) RULES.—The Director of the Institute of Museum and
Library Services may prescribe, in accordance with chapters 5 and
6 of title 5, United States Code, such rules and regulations as
the Director of the Institute of Museum and Library Services determines to be necessary or appropriate to administer and manage
the functions of the Institute of Museum and Library Services.

110 STAT. 3009–309

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(g) TRANSFER AND ALLOCATIONS OF APPROPRIATIONS AND
PERSONNEL.—Except as otherwise provided in this section, the
personnel employed in connection with, and the assets, liabilities,
contracts, property, records, and unexpended balances of appropriations, authorizations, allocations, and other funds employed, used,
held, arising from, available to, or to be made available in connection with the functions transferred by this section, subject to section
1531 of title 31, United States Code, shall be transferred to the
Institute of Museum and Library Services. Unexpended funds transferred pursuant to this subsection shall be used only for the purposes for which the funds were originally authorized and appropriated.
(h) INCIDENTAL TRANSFERS.—The Director of the Office of
Management and Budget, at such time or times as the Director
shall provide, may make such determinations as may be necessary
with regard to the functions transferred by this section, and make
such additional incidental dispositions of personnel, assets, liabilities, grants, contracts, property, records, and unexpended balances
of appropriations, authorizations, allocations, and other funds held,
used, arising from, available to, or to be made available in connection with such functions, as may be necessary to carry out this
section. The Director of the Office of Management and Budget
shall provide for the termination of the affairs of all entities terminated by this section and for such further measures and dispositions
as may be necessary to effectuate the purposes of this section.
(i) EFFECT ON PERSONNEL.—
(1) IN GENERAL.—Except as otherwise provided by this
section, the transfer pursuant to this section of full-time personnel (except special Government employees) and part-time
personnel holding permanent positions shall not cause any
such employee to be separated or reduced in grade or compensation for 1 year after the date of transfer of such employee
under this section.
(2) EXECUTIVE SCHEDULE POSITIONS.—Except as otherwise
provided in this section, any person who, on the day preceding
the effective date of this section, held a position compensated
in accordance with the Executive Schedule prescribed in chapter
53 of title 5, United States Code, and who, without a break
in service, is appointed in the Institute of Museum and Library
Services to a position having duties comparable to the duties
performed immediately preceding such appointment shall continue to be compensated in such new position at not less than
the rate provided for such previous position, for the duration
of the service of such person in such new position.
(j) SAVINGS PROVISIONS.—
(1) CONTINUING EFFECT OF LEGAL DOCUMENTS.—All orders,
determinations, rules, regulations, permits, agreements, grants,
contracts, certificates, licenses, registrations, privileges, and
other administrative actions—
(A) that have been issued, made, granted, or allowed
to become effective by the President, any Federal agency
or official of a Federal agency, or by a court of competent
jurisdiction, in the performance of functions that are transferred under this section; and
(B) that were in effect before the effective date of
this section, or were final before the effective date of this

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110 STAT. 3009–310

section and are to become effective on or after the effective
date of this section;
shall continue in effect according to their terms until modified,
terminated, superseded, set aside, or revoked in accordance with
law by the President, the Director of the Institute of Museum
and Library Services or other authorized official, a court of competent jurisdiction, or by operation of law.
(2) PROCEEDINGS NOT AFFECTED.—This section shall not affect
any proceedings, including notices of proposed rulemaking, or any
application for any license, permit, certificate, or financial assistance
pending before the Institute of Museum Services on the effective
date of this section, with respect to functions transferred by this
section. Such proceedings and applications shall be continued.
Orders shall be issued in such proceedings, appeals shall be taken
from the orders, and payments shall be made pursuant to the
orders, as if this section had not been enacted, and orders issued
in any such proceedings shall continue in effect until modified,
terminated, superseded, or revoked by a duly authorized official,
by a court of competent jurisdiction, or by operation of law. Nothing
in this paragraph shall be construed to prohibit the discontinuance
or modification of any such proceeding under the same terms and
conditions and to the same extent that such proceeding could have
been discontinued or modified if this section had not been enacted.
(3) SUITS NOT AFFECTED.—This section shall not affect suits
commenced before the effective date of this section, and in
all such suits, proceedings shall be had, appeals taken, and
judgments rendered in the same manner and with the same
effect as if this section had not been enacted.
(4) NONABATEMENT OF ACTIONS.—No suit, action, or other
proceeding commenced by or against the Institute of Museum
Services, or by or against any individual in the official capacity
of such individual as an officer of the Institute of Museum
Services, shall abate by reason of the enactment of this section.
(5) ADMINISTRATIVE ACTIONS RELATING TO PROMULGATION
OF REGULATIONS.—Any administrative action relating to the
preparation or promulgation of a regulation by the Institute
of Museum Services relating to a function transferred under
this section may be continued by the Institute of Museum
and Library Services with the same effect as if this section
had not been enacted.
(k) TRANSITION.—The Director of the Institute of Museum and
Library Services may utilize—
(1) the services of such officers, employees, and other
personnel of the Institute of Museum Services with respect
to functions transferred to the Institute of Museum and Library
Services by this section; and
(2) funds appropriated to such functions for such period
of time as may reasonably be needed to facilitate the orderly
implementation of this section.
(l) REFERENCES.—A reference in any other Federal law, Executive order, rule, regulation, or delegation of authority, or any document of or relating to—
(1) the Director of the Institute of Museum Services with
regard to functions transferred under subsection (b), shall be
deemed to refer to the Director of the Institute of Museum
and Library Services; and

110 STAT. 3009–311

PUBLIC LAW 104–208—SEPT. 30, 1996

(2) the Institute of Museum Services with regard to functions transferred under subsection (b), shall be deemed to refer
to the Institute of Museum and Library Services.
(m) ADDITIONAL CONFORMING AMENDMENTS.—
(1) RECOMMENDED LEGISLATION.—After consultation with
the appropriate committees of Congress and the Director of
the Office of Management and Budget, the Director of the
Institute of Museum and Library Services shall prepare and
submit to the appropriate committees of Congress recommended
legislation containing technical and conforming amendments
to reflect the changes made by this section.
(2) SUBMISSION TO CONGRESS.—Not later than 6 months
after the effective date of this section, the Director of the
Institute of Museum and Library Services shall submit to the
appropriate committees of Congress the recommended legislation referred to under paragraph (1).
20 USC 9103
note.

SEC. 705. SERVICE OF INDIVIDUALS SERVING ON DATE OF ENACTMENT.

Notwithstanding section 204 of the Museum and Library Services Act, the individual who was appointed to the position of Director
of the Institute of Museum Services under section 205 of the
Museum Services Act (as such section was in effect on the day
before the date of enactment of this Act) and who is serving in
such position on the day before the date of enactment of this
Act shall serve as the first Director of the Institute of Museum
and Library Services under section 204 of the Museum and Library
Services Act (as added by section 2 of this Act), and shall serve
at the pleasure of the President.
20 USC 9105
note.

SEC. 706. CONSIDERATION.

20 USC 9102
note.

SEC. 707. TRANSITION AND TRANSFER OF FUNDS.

Consistent with title 5, United States Code, in appointing
employees of the Office of Library Services, the Director of the
Institute of Museum and Library Services shall give strong consideration to individuals with experience in administering State-based
and national library and information services programs.
(a) TRANSITION.—The Director of the Office of Management
and Budget shall take appropriate measures to ensure an orderly
transition from the activities previously administered by the Director of Library Programs in the Office of Educational Research
and Improvement in the Department of Education to the activities
administered by the Institute for Museum and Library Services
under this Act. Such measures may include the transfer of appropriated funds.
(b) TRANSFER.—From any amounts available to the Secretary
of Education for salaries and expenses at the Department of Education, the Secretary of Education shall transfer to the Director
the amount of funds necessary to ensure the orderly transition
from activities previously administered by the Director of the Office
of Library Programs in the Office of Educational Research and
Improvement in the Department of Education to the activities
administered by the Institute for Museum and Library Services.
In no event shall the amount of funds transferred pursuant to
the preceding sentence be less than $200,000.

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110 STAT. 3009–312

SEC. 708. REPEALS.

(a) LIBRARY SERVICES AND CONSTRUCTION ACT.—The Library
Services and Construction Act (20 U.S.C. 351 et seq.) is repealed.
(b) TITLE II OF THE HIGHER EDUCATION ACT OF 1965.—Title
II of the Higher Education Act of 1965 (20 U.S.C. 1021 et seq.),
relating to academic libraries and information services, is repealed.
(c) PART D OF TITLE XIII OF THE HIGHER EDUCATION AMENDMENTS OF 1986.—Part D of title XIII of the Higher Education
Amendments of 1986 (20 U.S.C. 1029 note), relating to library
resources, is repealed.
(d) SECTION 519 OF THE EDUCATION AMENDMENTS OF 1974.—
Section 519 of the Education Amendments of 1974 (20 U.S.C. 1221i)
is repealed.
(e) PART F OF THE TECHNOLOGY FOR EDUCATION ACT OF 1994.—
Part F of the Technology for Education Act of 1994 (20 U.S.C.
7001 et seq.), contained in title III of the Elementary and Secondary
Education Act of 1965, is repealed.
SEC. 709. CONFORMING AMENDMENTS.

(a) REFERENCES TO LIBRARY SERVICES AND CONSTRUCTION
ACT.—
(1) TECHNOLOGY FOR EDUCATION ACT OF 1994.—Section
3113(10) of the Technology for Education Act of 1994 (20 U.S.C.
6813(10)) is amended by striking ‘‘section 3 of the Library
Services and Construction Act;’’ and inserting ‘‘section 213 of
the Library Services and Technology Act;’’.
(2) OMNIBUS EDUCATION RECONCILIATION ACT OF 1981.—
Section 528 of the Omnibus Education Reconciliation Act of
1981 (20 U.S.C. 3489) is amended—
(A) by striking paragraph (12); and
(B) by redesignating paragraphs (13) through (15) as
paragraphs (12) through (14), respectively.
(3) ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965.—
Section 3113(10) of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 6813(10)) is amended by striking ‘‘section
3 of the Library Services and Construction Act’’ and inserting
‘‘section 213 of the Library Services and Technology Act’’.
(4) COMMUNITY IMPROVEMENT VOLUNTEER ACT OF 1994.—
Section 7305 of the Community Improvement Volunteer Act
of 1994 (40 U.S.C. 276d–3) is amended—
(A) by striking paragraph (1); and
(B) by redesignating paragraphs (2) through (6) as
paragraphs (1) through (5), respectively.
(5) APPALACHIAN REGIONAL DEVELOPMENT ACT OF 1965.—
Section 214(c) of the Appalachian Regional Development Act
of 1965 (40 U.S.C. App. 214(c)) is amended by striking ‘‘Library
Services and Construction Act;’’.
(6) DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT OF 1966.—Section 208(2) of the Demonstration Cities
and Metropolitan Development Act of 1966 (42 U.S.C. 3338(2))
is amended by striking ‘‘title II of the Library Services and
Construction Act;’’.
(7) PUBLIC LAW 87–688.—Subsection (c) of the first section
of the Act entitled ‘‘An Act to extend the application of certain
laws to American Samoa’’, approved September 25, 1962 (48
U.S.C. 1666(c)) is amended by striking ‘‘the Library Services
Act (70 Stat. 293; 20 U.S.C. 351 et seq.),’’.

110 STAT. 3009–313

PUBLIC LAW 104–208—SEPT. 30, 1996

(8) COMMUNICATIONS ACT OF 1934.—Paragraph (4) of section
254(h) of the Communications Act of 1934 (47 U.S.C. 254(h)(4))
is amended by striking ‘‘library not eligible for participation
in State-based plans for funds under title III of the Library
Services and Construction Act (20 U.S.C. 335c et seq.)’’ and
inserting ‘‘library or library consortium not eligible for assistance from a State library administrative agency under the
Library Services and Technology Act’’.
(b) REFERENCES TO INSTITUTE OF MUSEUM SERVICES.—
(1) TITLE 5, UNITED STATES CODE.—Section 5315 of title
5, United States Code, is amended by striking the following:
‘‘Director of the Institute of Museum Services.’’ and inserting the following:
‘‘Director of the Institute of Museum and Library Services.’’.
(2) DEPARTMENT OF EDUCATION ORGANIZATION ACT.—Section 301 of the Department of Education Organization Act
(20 U.S.C. 3441) is amended—
(A) in subsection (a)—
(i) by striking paragraph (5); and
(ii) by redesignating paragraphs (6) and (7) as
paragraphs (5) and (6), respectively; and
(B) in subsection (b)—
(i) by striking paragraph (4); and
(ii) by redesignating paragraphs (5) through (7)
as paragraphs (4) through (6), respectively.
(3) ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965.—
(A) Sections 2101(b), 2205(c)(1)(D), 2208(d)(1)(H)(v),
and 2209(b)(1)(C)(iv), and subsection (d)(6) and (e)(2) of
section 10401 of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 6621(b), 6645(c)(1)(D),
6648(d)(1)(H)(v), 6649(b)(1)(C)(vi), and 8091 (d)(6) and
(e)(2)) are amended by striking ‘‘the Institute of Museum
Services’’ and inserting ‘‘the Institute of Museum and
Library Services’’.
(B) Section 10412(b) of such Act (20 U.S.C. 8102(b))
is amended—
(i) in paragraph (2), by striking ‘‘the Director of
the Institute of Museum Services,’’ and inserting ‘‘the
Director of the Institute of Museum and Library Services,’’; and
(ii) in paragraph (7), by striking ‘‘the Director of
the Institute of Museum Services,’’ and inserting ‘‘the
director of the Institute of Museum and Library Services,’’.
(C) Section 10414(a)(2)(B) of such Act (20 U.S.C.
8104(a)(2)(B)) is amended by striking clause (iii) and inserting the following new clause:
‘‘(iii) the Institute of Museum and Library Services.’’.
(c) REFERENCES TO OFFICE OF LIBRARIES AND LEARNING
RESOURCES.—Section 413(b)(1) of the Department of Education
Organization Act (20 U.S.C. 3473(b)(1)) is amended—
(1) by striking subparagraph (H); and
(2) by redesignating subparagraphs (I) through (M) as subparagraphs (H) through (L), respectively.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–314

(d) REFERENCE TO STATE POSTSECONDARY REVIEW ENTITY
PROGRAMS.—Section 356(b)(2) of the Higher Education Act of 1965
(20 U.S.C. 10696(b)) is amended by striking ‘‘II,’’.
This Act may be cited as the ‘‘Departments of Labor, Health
and Human Services, and Education, and Related Agencies Appropriations Act, 1997’’.
(f) For programs, projects or activities in the Treasury, Postal
Service, and General Appropriations Act, 1997, provided as follows,
to be effective as if it had been enacted into law as the regular
appropriations Act:
AN ACT
Making appropriations for the Treasury Department, the United States Postal Service, the Executive Office of the President, and certain Independent Agencies, for
the fiscal year ending September 30, 1997, and for other purposes.

TITLE I—DEPARTMENT OF THE TREASURY
DEPARTMENTAL OFFICES
SALARIES AND EXPENSES

For necessary expenses of the Departmental Offices including
operation and maintenance of the Treasury Building and Annex;
hire of passenger motor vehicles; maintenance, repairs, and
improvements of, and purchase of commercial insurance policies
for, real properties leased or owned overseas, when necessary for
the performance of official business; not to exceed $2,900,000 for
official travel expenses; not to exceed $150,000 for official reception
and representation expenses; not to exceed $258,000 for unforeseen
emergencies of a confidential nature, to be allocated and expended
under the direction of the Secretary of the Treasury and to be
accounted for solely on his certificate; $111,760,000.
AUTOMATION ENHANCEMENT
INCLUDING TRANSFER OF FUNDS

For the development and acquisition of automatic data processing equipment, software, and services for the Department of the
Treasury, $27,100,000, of which $15,000,000 shall be available to
the United States Customs Service for the Automated Commercial
Environment project, and of which $5,600,000 shall be available
to the United States Customs Service for the International Trade
Data System: Provided, That these funds shall remain available
until September 30, 1999: Provided further, That these funds shall
be transferred to accounts and in amounts as necessary to satisfy
the requirements of the Department’s offices, bureaus, and other
organizations: Provided further, That this transfer authority shall
be in addition to any other transfer authority provided in this
Act: Provided further, That none of the funds shall be used to
support or supplement Internal Revenue Service appropriations
for Information Systems and Tax Systems Modernization: Provided
further, That of the funds appropriated for the Automated Commercial Environment, $3,475,000 may not be obligated until the
Commissioner of Customs consults with the Committees on Appropriations regarding deficiencies identified by the General Accounting Office.

Treasury, Postal
Service, and
General
Government
Appropriations
Act, 1997.
Treasury
Department
Appropriations
Act, 1997.

110 STAT. 3009–315

PUBLIC LAW 104–208—SEPT. 30, 1996
OFFICE

OF INSPECTOR

GENERAL

SALARIES AND EXPENSES

For necessary expenses of the Office of Inspector General in
carrying out the provisions of the Inspector General Act of 1978,
as amended, not to exceed $2,000,000 for official travel expenses;
including hire of passenger motor vehicles; and not to exceed
$100,000 for unforeseen emergencies of a confidential nature, to
be allocated and expended under the direction of the Inspector
General of the Treasury; $29,736,000.
OFFICE

OF

PROFESSIONAL RESPONSIBILITY

SALARIES AND EXPENSES

For necessary expenses of the Office of Professional Responsibility, including purchase and hire of passenger motor vehicles,
$1,500,000.
TREASURY BUILDINGS

AND

ANNEX REPAIR

AND

RESTORATION

INCLUDING TRANSFER OF FUNDS

For the repair, alteration, and improvement of the Treasury
Building and Annex, $28,213,000, to remain available until
expended: Provided, That funds previously made available under
this title for the Secret Service Headquarter’s building shall be
transferred to the Secret Service Acquisition, Construction,
Improvement and Related Expenses appropriation.
FINANCIAL CRIMES ENFORCEMENT NETWORK
SALARIES AND EXPENSES

For necessary expenses of the Financial Crimes Enforcement
Network, including hire of passenger motor vehicles; travel expenses
of non-Federal law enforcement personnel to attend meetings concerned with financial intelligence activities, law enforcement, and
financial regulation; not to exceed $14,000 for official reception
and representation expenses; and for assistance to Federal law
enforcement agencies, with or without reimbursement; $22,387,000:
Provided, That notwithstanding any other provision of law, the
Director of the Financial Crimes Enforcement Network may procure
up to $500,000 in specialized, unique, or novel automatic data
processing equipment, ancillary equipment, software, services, and
related resources from commercial vendors without regard to otherwise applicable procurement laws and regulations and without full
and open competition, utilizing procedures best suited under the
circumstances of the procurement to efficiently fulfill the agency’s
requirements: Provided further, That funds appropriated in this
account may be used to procure personal services contracts.
DEPARTMENT

OF THE

TREASURY FORFEITURE FUND

For necessary expenses of the Treasury Forfeiture Fund, as
authorized by Public Law 102–393, not to exceed $10,000,000, to
be derived from deposits in the fund: Provided, That notwithstanding any other provision of law, not to exceed $7,500,000 shall

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–316

be made available for the development of a Federal wireless communication system: Provided further, That the Secretary of the Treasury is authorized to receive all unavailable collections transferred
from the Special Forfeiture Fund established by section 6073 of
the Anti-Drug Abuse Act of 1988 (21 U.S.C. 1509) by the Director
of the Office of Drug Control Policy as a deposit into the Treasury
Forfeiture Fund (31 U.S.C. 9703(a)).
VIOLENT CRIME REDUCTION PROGRAMS
INCLUDING TRANSFER OF FUNDS

For activities authorized by Public Law 103–322, to remain
available until expended, which shall be derived from the Violent
Crime Reduction Trust Fund, as follows:
(a) As authorized by section 190001(e), $89,000,000, of which
$36,595,000 shall be available to the Bureau of Alcohol, Tobacco
and Firearms, of which $3,000,000 shall be available for administering the Gang Resistance Education and Training program, of which
$3,662,000 shall be available for ballistics technologies, including
the purchase, maintenance and upgrading of equipment and of
which $29,133,000 shall be available to enhance training and purchase equipment and services, and of which $800,000 shall be
available for project LEAD; of which $18,300,000 shall be available
to the Secretary as authorized by section 732 of Public Law 104–
132, as amended by Section 113 of the Fiscal Year 1997 Department
of Commerce, Justice and State, and the Judiciary, and Related
Agencies Appropriations Act; of which $1,000,000 shall be available
to the Financial Crimes Enforcement Network; of which $20,000,000
shall be available to the United States Secret Service, of which
no less than $1,400,000 shall be available for a grant for activities
related to the investigations of missing and exploited children;
and of which $13,105,000 shall be available to the Federal Drug
Control Programs, High Intensity Drug Trafficking Areas program
(b) As authorized by section 32401, $8,000,000, for disbursement through grants, cooperative agreements or contracts, to local
governments for Gang Resistance Education and Training: Provided, That notwithstanding sections 32401 and 310001, such funds
shall be allocated only to the affected State and local law enforcement and prevention organizations participating in such projects.
TREASURY FRANCHISE FUND
There is hereby established in the Treasury a franchise fund
pilot, as authorized by section 403 of Public Law 103–356, to be
available as provided in such section for expenses and equipment
necessary for the maintenance and operation of such financial and
administrative support services as the Secretary determines may
be performed more advantageously as central services: Provided,
That any inventories, equipment, and other assets pertaining to
the services to be provided by such fund, either on hand or on
order, less the related liabilities or unpaid obligations, and any
appropriations made for the purpose of providing capital, shall
be used to capitalize such fund: Provided further, That such fund
shall be reimbursed or credited with the payments, including
advanced payments, from applicable appropriations and funds available to the Department and other Federal agencies for which such
administrative and financial services are performed, at rates which

31 USC 501 note.

110 STAT. 3009–317

PUBLIC LAW 104–208—SEPT. 30, 1996

will recover all expenses of operation, including accrued leave,
depreciation of fund plant and equipment, amortization of Automatic Data Processing (ADP) software and systems, and an amount
necessary to maintain a reasonable operating reserve, as determined by the Secretary: Provided further, That such fund shall
provide services on a competitive basis: Provided further, That
an amount not to exceed 4 percent of the total annual income
to such fund may be retained in the fund for fiscal year 1997
and each fiscal year thereafter, to remain available until expended,
to be used for the acquisition of capital equipment and for the
improvement and implementation of Treasury financial management, ADP, and other support systems: Provided further, That
no later than 30 days after the end of each fiscal year, amounts
in excess of this reserve limitation shall be deposited as miscellaneous receipts in the Treasury: Provided further, That such franchise
fund pilot shall terminate pursuant to section 403(f) of Public Law
103–356.
FEDERAL LAW ENFORCEMENT TRAINING CENTER
SALARIES AND EXPENSES

42 USC 3771
note.

For necessary expenses of the Federal Law Enforcement Training Center, as a bureau of the Department of the Treasury, including materials and support costs of Federal law enforcement basic
training; purchase (not to exceed 52 for police-type use, without
regard to the general purchase price limitation) and hire of passenger motor vehicles; for expenses for student athletic and related
activities; uniforms without regard to the general purchase price
limitation for the current fiscal year; the conducting of and participating in firearms matches and presentation of awards; for public
awareness and enhancing community support of law enforcement
training; not to exceed $9,500 for official reception and representation expenses; room and board for student interns; and services
as authorized by 5 U.S.C. 3109; $54,831,000, of which up to
$13,034,000 for materials and support costs of Federal law enforcement basic training shall remain available until September 30,
1999: Provided, That the Center is authorized to accept and use
gifts of property, both real and personal, and to accept services,
for authorized purposes, including funding of a gift of intrinsic
value which shall be awarded annually by the Director of the
Center to the outstanding student who graduated from a basic
training program at the Center during the previous fiscal year,
which shall be funded only by gifts received through the Center’s
gift authority: Provided further, That notwithstanding any other
provision of law, students attending training at any Federal Law
Enforcement Training Center site shall reside in on-Center or Center-provided housing, insofar as available and in accordance with
Center policy: Provided further, That funds appropriated in this
account shall be available, at the discretion of the Director, for:
training United States Postal Service law enforcement personnel
and Postal police officers; State and local government law enforcement training on a space-available basis; training of foreign law
enforcement officials on a space-available basis with reimbursement
of actual costs to this appropriation; training of private sector
security officials on a space-available basis with reimbursement
of actual costs to this appropriation; and travel expenses of non-

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–318

Federal personnel to attend course development meetings and training at the Center: Provided further, That the Center is authorized
to obligate funds in anticipation of reimbursements from agencies
receiving training at the Federal Law Enforcement Training Center,
except that total obligations at the end of the fiscal year shall
not exceed total budgetary resources available at the end of the
fiscal year: Provided further, That the Federal Law Enforcement
Training Center is authorized to provide short term medical services
for students undergoing training at the Center.
ACQUISITION, CONSTRUCTION, IMPROVEMENTS, AND RELATED
EXPENSES

For expansion of the Federal Law Enforcement Training Center,
for acquisition of necessary additional real property and facilities,
and for ongoing maintenance, facility improvements, and related
expenses, $18,884,000, to remain available until expended.
FINANCIAL MANAGEMENT SERVICE
SALARIES AND EXPENSES

For necessary expenses of the Financial Management Service,
$196,069,000, of which not to exceed $14,277,000 shall remain
available until expended for systems modernization initiatives. In
addition, $90,000, to be derived from the Oil Spill Liability Trust
Fund, to reimburse the Service for administrative and personnel
expenses for financial management of the Fund, as authorized
by section 1012 of Public Law 101–380: Provided, That none of
the funds made available for systems modernization initiatives
may not be obligated until the Commissioner of the Financial
Management Service has submitted, and the Committees on Appropriations of the House and Senate have approved, a report that
identifies, evaluates, and prioritizes all computer systems investments planned for fiscal year 1997, a milestone schedule for the
development and implementation of all projects included in the
systems investment plan, and a systems architecture plan.
BUREAU

OF

ALCOHOL, TOBACCO

AND

FIREARMS

SALARIES AND EXPENSES

For necessary expenses of the Bureau of Alcohol, Tobacco and
Firearms, including purchase of not to exceed 650 vehicles for
police-type use for replacement only and hire of passenger motor
vehicles; hire of aircraft; and services of expert witnesses at such
rates as may be determined by the Director; for payment of per
diem and/or subsistence allowances to employees where an assignment to the National Response Team during the investigation of
a bombing or arson incident requires an employee to work 16
hours or more per day or to remain overnight at his or her post
of duty; not to exceed $12,500 for official reception and representation expenses; for training of State and local law enforcement agencies with or without reimbursement, including training in connection with the training and acquisition of canines for explosives
and fire accelerants detection; provision of laboratory assistance
to State and local agencies, with or without reimbursement;
$393,971,000, of which $12,011,000, to remain available until

110 STAT. 3009–319

PUBLIC LAW 104–208—SEPT. 30, 1996

expended, shall be available for arson investigations, with priority
assigned to any arson, explosion or violence against religious institutions; which not to exceed $1,000,000 shall be available for the
payment of attorneys’ fees as provided by 18 U.S.C. 924(d)(2);
and of which $1,000,000 shall be available for the equipping of
any vessel, vehicle, equipment, or aircraft available for official use
by a State or local law enforcement agency if the conveyance will
be used in drug-related joint law enforcement operations with the
Bureau of Alcohol, Tobacco and Firearms and for the payment
of overtime salaries, travel, fuel, training, equipment, and other
similar costs of State and local law enforcement officers that are
incurred in joint operations with the Bureau of Alcohol, Tobacco
and Firearms: Provided, That no funds made available by this
or any other Act may be used to transfer the functions, missions,
or activities of the Bureau of Alcohol, Tobacco and Firearms to
other agencies or Departments in the fiscal year ending on September 30, 1997: Provided further, That no funds appropriated herein
shall be available for salaries or administrative expenses in connection with consolidating or centralizing, within the Department of
the Treasury, the records, or any portion thereof, of acquisition
and disposition of firearms maintained by Federal firearms licensees: Provided further, That no funds appropriated herein shall
be used to pay administrative expenses or the compensation of
any officer or employee of the United States to implement an
amendment or amendments to 27 CFR 178.118 or to change the
definition of ‘‘Curios or relics’’ in 27 CFR 178.11 or remove any
item from ATF Publication 5300.11 as it existed on January 1,
1994: Provided further, That none of the funds appropriated herein
shall be available to investigate or act upon applications for relief
from Federal firearms disabilities under 18 U.S.C. 925(c):Provided
further, That such funds shall be available to investigate and act
upon applications filed by corporations for relief from Federal firearms disabilities under 18 U.S.C. 925(c): Provided further, That
no funds in this Act may be used to provide ballistics imaging
equipment to any State or local authority who has obtained similar
equipment through a Federal grant or subsidy unless the State
or local authority agrees to return that equipment or to repay
that grant or subsidy to the Federal Government: Provided further,
That no funds available for separation incentive payments as
authorized by section 663 of this Act may be obligated without
the advance approval of the House and Senate Committees on
Appropriations: Provided further, That no funds under this Act
may be used to electronically retrieve information gathered pursuant to 18 U.S.C. 923(g)(4) by name or any personal identification
code.
LABORATORY FACILITIES

For necessary expenses for design of a new facility or facilities,
to house the Bureau of Alcohol, Tobacco and Firearms National
Laboratory Center and the Fire Investigation Research and Development Center, not to exceed 185,000 occupiable square feet,
$6,978,000, to remain available until expended: Provided, That
these funds shall not be available until a prospectus of authorization
for the Laboratory Facilities is approved by the House Committee
on Transportation and Infrastructure and the Senate Committee
on Environment and Public Works.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–320

UNITED STATES CUSTOMS SERVICE
SALARIES AND EXPENSES

For necessary expenses of the United States Customs Service,
including purchase of up to 1,000 motor vehicles of which 960
are for replacement only, including 990 for police-type use and
commercial operations; hire of motor vehicles; contracting with
individuals for personal services abroad; not to exceed $30,000
for official reception and representation expenses; and awards of
compensation to informers, as authorized by any Act enforced
by the United States Customs Service; $1,487,250,000; of which
$65,000,000 shall be available until expended for Operation
Hardline; of which $28,000,000 shall remain available until
expended for acquisition of aircraft and related operations and
maintenance associated with Operation Gateway; and of which
such sums as become available in the Customs User Fee Account,
except sums subject to section 13031(f)(3) of the Consolidated Omnibus Reconciliation Act of 1985, as amended (19 U.S.C. 58c(f)(3)),
shall be derived from that Account; of the total, not to exceed
$150,000 shall be available for payment for rental space in connection with preclearance operations, and not to exceed $4,000,000
shall be available until expended for research and not to exceed
$1,000,000 shall be available until expended for conducting special
operations pursuant to 19 U.S.C. 2081 and up to $6,000,000 shall
be available until expended for the procurement of automation
infrastructure items, including hardware, software, and installation:
Provided, That uniforms may be purchased without regard to the
general purchase price limitation for the current fiscal
year:Provided further, That the United States Custom Service shall
implement the General Aviation Telephonic Entry program within
30 days of enactment of this Act: Provided further, That no funds
available for separation incentive payments as authorized by section
663 of this Act may be obligated without the advance approval
of the House and Senate Committees on Appropriations:Provided
further, That the Spirit of St. Louis Airport in St. Louis County,
Missouri, shall be designated a port of entry: Provided further,
That no funds under this Act may be used to provide less than
30 days public notice for any change in apparel regulations: Provided further, That $750,000 shall be available for additional parttime and temporary positions in the Honolulu Customs District:
Provided further, That of the funds appropriated $2,500,000 may
be made available for the Western Hemisphere Trade Center
authorized by Public Law 103–182.
OPERATION AND MAINTENANCE, AIR AND MARINE INTERDICTION
PROGRAMS

For expenses, not otherwise provided for, necessary for the
operation and maintenance of marine vessels, aircraft, and other
related equipment of the Air and Marine Programs, including operational training and mission-related travel, and rental payments
for facilities occupied by the air or marine interdiction and demand
reduction programs, the operations of which include: the interdiction
of narcotics and other goods; the provision of support to Customs
and other Federal, State, and local agencies in the enforcement
or administration of laws enforced by the Customs Service; and,
at the discretion of the Commissioner of Customs, the provision

110 STAT. 3009–321

PUBLIC LAW 104–208—SEPT. 30, 1996

of assistance to Federal, State, and local agencies in other law
enforcement and emergency humanitarian efforts; $83,363,000,
which shall remain available until expended: Provided, That no
aircraft or other related equipment, with the exception of aircraft
which is one of a kind and has been identified as excess to Customs
requirements and aircraft which has been damaged beyond repair,
shall be transferred to any other Federal agency, Department,
or office outside of the Department of the Treasury, during fiscal
year 1997 without the prior approval of the House and Senate
Committees on Appropriations.
CUSTOMS SERVICES AT SMALL AIRPORTS
(TO BE DERIVED FROM FEES COLLECTED)

Such sums as may be necessary for expenses for the provision
of Customs services at certain small airports or other facilities
when authorized by law and designated by the Secretary of the
Treasury, including expenditures for the salary and expenses of
individuals employed to provide such services, to be derived from
fees collected by the Secretary pursuant to section 236 of Public
Law 98–573 for each of these airports or other facilities when
authorized by law and designated by the Secretary, and to remain
available until expended.
HARBOR MAINTENANCE FEE COLLECTION

For administrative expenses related to the collection of the
Harbor Maintenance Fee, pursuant to Public Law 103–182,
$3,000,000, to be derived from the Harbor Maintenance Trust Fund
and to be transferred to and merged with the Customs ‘‘Salaries
and Expenses’’ account for such purposes.
BUREAU

OF THE

PUBLIC DEBT

ADMINISTERING THE PUBLIC DEBT

For necessary expenses connected with any public-debt issues
of the United States; $169,735,000: Provided, That the sum appropriated herein from the General Fund for fiscal year 1997 shall
be reduced by not more than $4,400,000 as definitive security
issue fees and Treasury Direct Investor Account Maintenance fees
are collected, so as to result in a final fiscal year 1997 appropriation
from the General Fund estimated at $165,335,000.
INTERNAL REVENUE SERVICE
PROCESSING, ASSISTANCE, AND MANAGEMENT

For necessary expenses of the Internal Revenue Service, not
otherwise provided for; including processing tax returns; revenue
accounting; providing assistance to taxpayers, management services, and inspection; including purchase (not to exceed 150 for
replacement only for police-type use) and hire of passenger motor
vehicles (31 U.S.C. 1343(b)); and services as authorized by 5 U.S.C.
3109, at such rates as may be determined by the Commissioner;
$1,779,840,000, of which up to $3,700,000 shall be for the Tax

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–322

Counseling for the Elderly Program, and of which not to exceed
$25,000 shall be for official reception and representation expenses.
TAX LAW ENFORCEMENT

For necessary expenses of the Internal Revenue Service for
determining and establishing tax liabilities; tax and enforcement
litigation; technical rulings; examining employee plans and exempt
organizations; investigation and enforcement activities; securing
unfiled tax returns; collecting unpaid accounts; statistics of income
and compliance research; the purchase (for police-type use, not
to exceed 850), and hire of passenger motor vehicles (31 U.S.C.
1343(b)); and services as authorized by 5 U.S.C. 3109, at such
rates as may be determined by the Commissioner $4,104,211,000,
of which not to exceed $1,000,000 shall remain available until
September 30, 1999, for research.
INFORMATION SYSTEMS

For necessary expenses for data processing and telecommunications support for Internal Revenue Service activities, including
tax systems modernization and operational information systems;
the hire of passenger motor vehicles (31 U.S.C. 1343(b)); and services as authorized by 5 U.S.C. 3109, at such rates as may be
determined by the Commissioner, $1,323,075,000, of which no less
than $130,075,000 shall be available for Tax Systems Modernization
(TSM) development and deployment which shall be available until
September 30, 1999, and of which no less than $206,200,000 shall
be available for TSM Operational Systems: Provided, That none
of the funds made available for TSM Operational Systems shall
be available after July 31, 1997, unless the Department of the
Treasury has prepared a Request for Proposal which could be
used as a base for a solicitation of a contract with an alternative
or new Prime Contractor to manage, integrate, test and implement
the TSM program: Provided further, That all activities associated
with the development of a request for proposal, contract solicitation,
and contract award for private sector assistance on TSM (both
operational systems and development and deployment systems),
beyond private sector assistance which is currently under contract,
shall be conducted by the Department of the Treasury’s Modernization Management Board: Provided further, That if the Internal
Revenue Service determines that it is unable to meet deadlines
established herein, the Secretary of the Treasury shall notify the
Committees on Appropriations of the House and the Senate of
the delay Provided further, That the Internal Revenue Service
shall submit, by February 1, 1997, a timetable for implementing,
by October 1, 1997, recommendations made by the General Accounting Office in its July 1995 report, entitled: ‘‘Tax Systems Modernization: Management and Technical Weaknesses Must Be Corrected
If Modernization Is To Succeed’’: Provided further, That the Internal
Revenue Service shall submit, by December 1, 1996, a schedule
to transfer, not later than July 31, 1997, a majority of Tax Systems
Modernization development, deployment, management, integration,
and testing, from the Internal Revenue Service to the private sector.

110 STAT. 3009–323

PUBLIC LAW 104–208—SEPT. 30, 1996
INFORMATION SYSTEMS
(RESCISSION)

Of the funds made available under this heading for Information
Systems in Public Law 104–52, $115,000,000 are rescinded, in
Public Law 103–123, $17,447,000 are rescinded, in Public Law
102–393, $15,000,000 are rescinded, and in Public Law 102–141,
$27,000,000 are rescinded.
ADMINISTRATIVE PROVISIONS—INTERNAL REVENUE SERVICE

26 USC 7803
note.

SECTION 101. Not to exceed 5 percent of any appropriation
made available in this Act to the Internal Revenue Service may
be transferred to any other Internal Revenue Service appropriation
upon the advance approval of the House and Senate Committees
on Appropriations.
SEC. 102. The Internal Revenue Service shall maintain a training program to insure that Internal Revenue Service employees
are trained in taxpayers’ rights, in dealing courteously with the
taxpayers, and in cross-cultural relations.
SEC. 103. The funds provided in this Act for the Internal
Revenue Service shall be used to provide as a minimum, the fiscal
year 1995 level of service, staffing, and funding for Taxpayer Services.
SEC. 104. No funds available in this Act to the Internal Revenue
Service for separation incentive payments as authorized by section
663 of this Act may be obligated without the advance approval
of the House and Senate Committees on Appropriations.
SEC. 105. The Internal Revenue Service (IRS) may proceed
with its field support reorganization in fiscal year 1997 after it
submits its report, no earlier than March 1, 1997, to the Committees
on Appropriations of the House and Senate only if the IRS maintains, in fiscal year 1997, the current level of taxpayer service
employees that work on cases generated through walk in vists
and telephone calls to IRS offices.
SEC. 106. Funds made available by this or any other Act to
the Internal Revenue Service shall be available for improved facilities and increased manpower to provide sufficient and effective
1–800 help line for taxpayers. The Commissioner shall make the
improvement of the IRS 1–800 help line service a priority and
allocate resources necessary to increase phone lines and staff to
improve the IRS 1–800 help line service.
SEC. 107. No funds made available by this Act, or any other
Act, to the Internal Revenue Service may be used to pay for the
design and printing of more than two ink colors on the covers
of income tax packages, and such ink colors must be the same
colors as used to print the balance of the material in each package.
SEC. 108. Notwithstanding any other provision of law, no field
support reorganization of the Internal Revenue Service shall be
undertaken in Aberdeen, South Dakota until the Internal Revenue
Service toll-free help phone line assistance program reaches at
least an 80 percent service level. The Commissioner shall submit
to Congress a report and the GAO shall certify to Congress that
the 80 percent service level has been met.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–324

UNITED STATES SECRET SERVICE
SALARIES AND EXPENSES

For necessary expenses of the United States Secret Service,
including purchase (not to exceed 702 vehicles for police-type use,
of which 665 shall be for replacement only), and hire of passenger
motor vehicles; hire of aircraft; training and assistance requested
by State and local governments, which may be provided without
reimbursement; services of expert witnesses at such rates as may
be determined by the Director; rental of buildings in the District
of Columbia, and fencing, lighting, guard booths, and other facilities
on private or other property not in Government ownership or control, as may be necessary to perform protective functions; for payment of per diem and/or subsistence allowances to employees where
a protective assignment during the actual day or days of the visit
of a protectee require an employee to work 16 hours per day
or to remain overnight at his or her post of duty; the conducting
of and participating in firearms matches; presentation of awards;
and for travel of Secret Service employees on protective missions
without regard to the limitations on such expenditures in this
or any other Act: Provided, That approval is obtained in advance
from the House and Senate Committees on Appropriations; for
repairs, alterations, and minor construction at the James J. Rowley
Secret Service Training Center; for research and development; for
making grants to conduct behavioral research in support of protective research and operations; not to exceed $20,000 for official
reception and representation expenses; not to exceed $50,000 to
provide technical assistance and equipment to foreign law enforcement organizations in counterfeit investigations; for payment in
advance for commercial accommodations as may be necessary to
perform protective functions; and for uniforms without regard to
the general purchase price limitation for the current fiscal year:
Provided further, That 3 U.S.C. 203(a) is amended by deleting
‘‘but not exceeding twelve hundred in number’’; $528,262,000, of
which $1,200,000 shall be available as a grant for activities related
to the investigations of missing and exploited children and shall
remain available until expended.
SALARIES AND EXPENSES
(RESCISSION)

Of the funds made available under this heading in Public
Law 104–52, $7,600,000 are rescinded.
ACQUISITION, CONSTRUCTION, IMPROVEMENT, AND RELATED
EXPENSES
(INCLUDING TRANSFER OF FUNDS)

For necessary expenses of construction, repair, alteration, and
improvement of facilities, $37,365,000, of which $8,200,000 shall
be available for the Rowley Secret Service Training Center, to
remain available until expended: Provided, That funds previously
provided under the title, ‘‘Treasury Buildings and Annex Repair
and Restoration,’’ for the Secret Service’s Headquarters Building,
shall be transferred to this account: Provided further, That funds
for the Rowley Secret Service Training Center shall not be available

110 STAT. 3009–325

PUBLIC LAW 104–208—SEPT. 30, 1996

until a prospectus authorizing such facilities is approved in accordance with the Public Buildings Act of 1959, as amended, except
that funds may be expended for required expenses in connection
with the development of a proposed prospectus.
GENERAL PROVISIONS—DEPARTMENT

26 USC 6103
note.

OF THE

TREASURY

SECTION 111. Any obligation or expenditure by the Secretary
in connection with law enforcement activities of a Federal agency
or a Department of the Treasury law enforcement organization
in accordance with 31 U.S.C. 9703(g)(4)(B) from unobligated balances remaining in the Fund on September 30, 1997, shall be
made in compliance with the reprogramming guidelines contained
in the House and Senate reports accompanying this Act.
SEC. 112. Appropriations to the Treasury Department in this
Act shall be available for uniforms or allowances therefor, as authorized by law (5 U.S.C. 5901), including maintenance, repairs, and
cleaning; purchase of insurance for official motor vehicles operated
in foreign countries; purchase of motor vehicles without regard
to the general purchase price limitations for vehicles purchased
and used overseas for the current fiscal year; entering into contracts
with the Department of State for the furnishing of health and
medical services to employees and their dependents serving in
foreign countries; and services authorized by 5 U.S.C. 3109.
SEC. 113. None of the funds appropriated by this title shall
be used in connection with the collection of any underpayment
of any tax imposed by the Internal Revenue Code of 1986 unless
the conduct of officers and employees of the Internal Revenue
Service in connection with such collection, including any private
sector employees under contract to the Internal Revenue Service,
complies with subsection (a) of section 805 (relating to communications in connection with debt collection), and section 806 (relating
to harassment or abuse), of the Fair Debt Collection Practices
Act (15 U.S.C. 1692).
SEC. 114. The Internal Revenue Service shall institute policies
and procedures which will safeguard the confidentiality of taxpayer
information.
SEC. 115. The funds provided to the Bureau of Alcohol Tobacco
and Firearms for fiscal year 1997 in this Act for the enforcement
of the Federal Alcohol Administration Act shall be expended in
a manner so as not to diminish enforcement efforts with respect
to section 105 of the Federal Alcohol Administration Act.
SEC. 116. Paragraph (3)(C) of section 9703(g) of title 31, United
States Code, is amended—
(1) by striking in the third sentence ‘‘and at the end of
each fiscal year thereafter’’;
(2) by inserting in lieu thereof ‘‘1994, 1995, and 1996’’;
and
(3) by adding at the end the following new sentence: ‘‘At
the end of fiscal year 1997, and at the end of each fiscal
year thereafter, the Secretary shall reserve any amounts that
are required to be retained in the Fund to ensure the availability of amounts in the subsequent fiscal year for purposes
authorized under subsection (a).’’
SEC. 117. Of the funds available to the Internal Revenue Service, $13,000,000 shall be made available to continue the private
sector debt collection program which was initiated in fiscal year

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–326

1996 and $13,000,000 shall be transferred to the Departmental
Offices appropriation to initiate a new private sector debt collection
program: Provided, That the transfer provided herein shall be in
addition to any other transfer authority contained in this Act.
SEC. 118. Section 923(j) of title 18, United States Code, is
amended by striking the period after the last sentence, and inserting
the following: ‘‘, including the right of a licensee to conduct ‘curios
or relics’ firearms transfers and business away from their business
premises with another licensee without regard as to whether the
location of where the business is conducted is located in the State
specified on the license of either licensee.’’.
This title may be cited as the ‘‘Treasury Department Appropriations Act, 1997’’.
TITLE II—POSTAL SERVICE
PAYMENTS

TO THE

POSTAL SERVICE

PAYMENT TO THE POSTAL SERVICE FUND

For payment to the Postal Service Fund for revenue forgone
on free and reduced rate mail, pursuant to subsections (c) and
(d) of section 2401 of title 39, United States Code, $85,080,000:
Provided, That mail for overseas voting and mail for the blind
shall continue to be free: Provided further, That 6-day delivery
and rural delivery of mail shall continue at not less than the
1983 level: Provided further, That none of the funds made available
to the Postal Service by this Act shall be used to implement any
rule, regulation, or policy of charging any officer or employee of
any State or local child support enforcement agency, or any individual participating in a State or local program of child support enforcement, a fee for information requested or provided concerning an
address of a postal customer: Provided further, That none of the
funds provided in this Act shall be used to consolidate or close
small rural and other small post offices in the fiscal year ending
on September 30, 1997.
PAYMENT TO THE POSTAL SERVICE FUND FOR NONFUNDED LIABILITIES

For payment to the Postal Service Fund for meeting the liabilities of the former Post Office Department to the Employees’ Compensation Fund pursuant to 39 United States Code 2004,
$35,536,000.
TITLE III—EXECUTIVE OFFICE OF THE PRESIDENT AND
FUNDS APPROPRIATED TO THE PRESIDENT
COMPENSATION

OF THE

PRESIDENT

AND THE

Executive Office
Appropriations
Act, 1997.

WHITE HOUSE OFFICE

COMPENSATION OF THE PRESIDENT

For compensation of the President, including an expense allowance at the rate of $50,000 per annum as authorized by 3 U.S.C.
102, $250,000: Provided, That none of the funds made available
for official expenses shall be expended for any other purpose and
any unused amount shall revert to the Treasury pursuant to section
1552 of title 31, United States Code: Provided further, That none

3 USC 102 note.

110 STAT. 3009–327

PUBLIC LAW 104–208—SEPT. 30, 1996

of the funds made available for official expenses shall be considered
as taxable to the President.
SALARIES AND EXPENSES

For necessary expenses for the White House as authorized
by law, including not to exceed $3,850,000 for services as authorized
by 5 U.S.C. 3109 and 3 U.S.C. 105; including subsistence expenses
as authorized by 3 U.S.C. 105, which shall be expended and
accounted for as provided in that section; hire of passenger motor
vehicles, newspapers, periodicals, teletype news service, and travel
(not to exceed $100,000 to be expended and accounted for as provided by 3 U.S.C. 103); not to exceed $19,000 for official entertainment expenses, to be available for allocation within the Executive
Office of the President; $40,193,000: Provided, That $420,000 of
the funds appropriated may not be obligated until the Director
of the Office of Administration has submitted, and the Committees
on Appropriations of the House and Senate have approved, a report
that identifies, evaluates, and prioritizes all computer systems
investments planned for fiscal year 1997, a milestone schedule
for the development and implementation of all projects included
in the systems investment plan, and a systems architecture plan.
EXECUTIVE RESIDENCE

AT THE

WHITE HOUSE

OPERATING EXPENSES

For the care, maintenance, repair and alteration, refurnishing,
improvement, heating and lighting, including electric power and
fixtures, of the Executive Residence at the White House and official
entertainment expenses of the President, $7,827,000, to be expended
and accounted for as provided by 3 U.S.C. 105, 109–110, 112–
114.
SPECIAL ASSISTANCE TO THE PRESIDENT AND THE OFFICIAL
RESIDENCE OF THE VICE PRESIDENT
SALARIES AND EXPENSES

For necessary expenses to enable the Vice President to provide
assistance to the President in connection with specially assigned
functions, services as authorized by 5 U.S.C. 3109 and 3 U.S.C.
106, including subsistence expenses as authorized by 3 U.S.C. 106,
which shall be expended and accounted for as provided in that
section; and hire of passenger motor vehicles; $3,280,000: Provided,
That $150,000 of the funds appropriated may not be obligated
until the Director of the Office of Administration has submitted,
and the Committees on Appropriations of the House and Senate
have approved, a report that identifies, evaluates, and prioritizes
all computer systems investments planned for fiscal year 1997,
a milestone schedule for the development and implementation of
all projects included in the systems investment plan, and a systems
architecture plan.
OPERATING EXPENSES

For the care, operation, refurnishing, improvement, heating
and lighting, including electric power and fixtures, of the official

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–328

residence of the Vice President, the hire of passenger motor vehicles,
and not to exceed $90,000 for official entertainment expenses of
the Vice President, to be accounted for solely on his certificate;
$324,000: Provided, That advances or repayments or transfers from
this appropriation may be made to any department or agency for
expenses of carrying out such activities: Provided further, That
$8,000 of the funds appropriated may not be obligated until the
Director of the Office of Administration has submitted for approval
to the Committees on Appropriations of the House and Senate
a report that identifies, evaluates, and prioritizes all computer
systems investments planned for fiscal year 1997, a milestone schedule for the development and implementation of all projects included
in the systems investment plan, and a systems architecture plan.
COUNCIL

OF

ECONOMIC ADVISERS

SALARIES AND EXPENSES

For necessary expenses of the Council in carrying out its functions under the Employment Act of 1946 (15 U.S.C. 1021),
$3,439,000.
OFFICE

OF

POLICY DEVELOPMENT

SALARIES AND EXPENSES

For necessary expenses of the Office of Policy Development,
including services as authorized by 5 U.S.C. 3109, and 3 U.S.C.
107; $3,867,000: Provided, That $45,000 of the funds appropriated
may not be obligated until the Director of the Office of Administration has submitted, and the Committees on Appropriations of the
House and Senate have approved, a report that identifies, evaluates,
and prioritizes all computer systems investments planned for fiscal
year 1997, a milestone schedule for the development and
implementation of all projects included in the systems investment
plan, and a systems architecture plan.
NATIONAL SECURITY COUNCIL
SALARIES AND EXPENSES

For necessary expenses of the National Security Council, including services as authorized by 5 U.S.C. 3109, $6,648,000: Provided,
That $3,000 of the funds appropriated may not be obligated until
the Director of the Office of Administration has submitted, and
the Committees on Appropriations of the House and Senate have
approved, a report that identifies, evaluates, and prioritizes all
computer systems investments planned for fiscal year 1997, a milestone schedule for the development and implementation of all
projects included in the systems investment plan, and a systems
architecture plan.
OFFICE

OF

ADMINISTRATION

SALARIES AND EXPENSES

For necessary expenses of the Office of Administration,
$26,100,000, including services as authorized by 5 U.S.C. 3109

110 STAT. 3009–329

PUBLIC LAW 104–208—SEPT. 30, 1996

and 3 U.S.C. 107, and hire of passenger motor vehicles: Provided,
That $340,700 of the funds appropriated may not be obligated
until the Director of the Office of Administration has submitted,
and the Committees on Appropriations of the House and Senate
have approved, a report that identifies, evaluates, and prioritizes
all computer systems investments planned for fiscal year 1997,
a milestone schedule for the development and implementation of
all projects included in the systems investment plan, and a systems
architecture plan.
OFFICE

OF

MANAGEMENT

AND

BUDGET

SALARIES AND EXPENSES

For necessary expenses of the Office of Management and
Budget, including hire of passenger motor vehicles, services as
authorized by 5 U.S.C. 3109, $55,573,000, of which not to exceed
$5,000,000 shall be available to carry out the provisions of 44
U.S.C. chapter 35: Provided, That, as provided in 31 U.S.C. 1301(a),
appropriations shall be applied only to the objects for which appropriations were made except as otherwise provided by law: Provided
further, That none of the funds appropriated in this Act for the
Office of Management and Budget may be used for the purpose
of reviewing any agricultural marketing orders or any activities
or regulations under the provisions of the Agricultural Marketing
Agreement Act of 1937 (7 U.S.C. 601 et seq.): Provided further,
That none of the funds made available for the Office of Management
and Budget by this Act may be expended for the altering of the
transcript of actual testimony of witnesses, except for testimony
of officials of the Office of Management and Budget, before the
House and Senate Committees on Appropriations or the House
and Senate Committees on Veterans’ Affairs or their subcommittees:
Provided further, That this proviso shall not apply to printed hearings released by the House and Senate Committees on Appropriations or the House and Senate Committees on Veterans’ Affairs.
OFFICE

OF

NATIONAL DRUG CONTROL POLICY
SALARIES AND EXPENSES

(INCLUDING TRANSFER OF FUNDS)

For necessary expenses of the Office of National Drug Control
Policy; for research activities pursuant to title I of Public Law
100–690; not to exceed $8,000 for official reception and representation expenses; and for participation in joint projects or in the
provision of services on matters of mutual interest with nonprofit,
research, or public organizations or agencies, with or without
reimbursement; $35,838,000, of which $19,000,000 shall remain
available until expended, consisting of $1,000,000 for policy research
and evaluation and $18,000,000 for the Counter-Drug Technology
Assessment Center for counternarcotics research and development
projects of which $1,000,000 shall be obligated for state conferences
on model state drug laws: Provided, That the $17,000,000 for the
Counter-Drug Technology Assessment Center shall be available
for transfer to other Federal departments or agencies: Provided
further, That the Office is authorized to accept, hold, administer,
and utilize gifts, both real and personal, for the purpose of aiding

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–330

or facilitating the work of the Office: Provided further, That not
before January 31, 1997, the Director of the Office of National
Drug Control Policy shall transfer all balances in the Special Forfeiture Fund established by section 6073 of the Anti-Drug Abuse Act
of 1988 (21 U.S.C. § 1509) to the Treasury Forfeiture Fund (31
U.S.C. 9703(a)).
FEDERAL DRUG CONTROL PROGRAMS
HIGH INTENSITY DRUG TRAFFICKING AREAS PROGRAM
(INCLUDING TRANSFER OF FUNDS)

For necessary expenses of the Office of National Drug Control
Policy’s High Intensity Drug Trafficking Areas Program,
$127,102,000 for drug control activities consistent with the approved
strategy for each of the designated High Intensity Drug Trafficking
Areas, of which $3,000,000 shall be used for a newly designated
High Intensity Drug Trafficking Area in Lake County, Indiana;
of which $6,000,000 shall be used for a newly designated High
Intensity Drug Trafficking Area for the Gulf Coast States of Louisiana, Alabama, and Mississippi; of which $8,000,000 shall be used
for a newly designated High Intensity Drug Trafficking Area dedicated to combating methamphetamine use, production and trafficking in a five State area including Iowa, Missouri, Nebraska, South
Dakota, and Kansas; of which $3,000,000 shall be used for a newly
designated High Intensity Drug Trafficking Area in the State of
Colorado; of which $3,000,000 shall be used for a newly designated
High Intensity Drug Trafficking Area in the Pacific Northwest;
of the total amount appropriated, including transferred funds, no
less than $71,000,000 shall be transferred to State and local entities
for drug control activities, and up to $69,207,000 may be transferred
to Federal agencies and departments at a rate to be determined
by the Director: Provided, That the funds made available under
this head shall be obligated within 90 days of the date of enactment
of this Act.
This title may be cited as the ‘‘Executive Office Appropriations
Act, 1997’’.
TITLE IV—INDEPENDENT AGENCIES
COMMITTEE

FOR

PURCHASE FROM PEOPLE WHO ARE BLIND
SEVERELY DISABLED

OR

SALARIES AND EXPENSES

For necessary expenses of the Committee for Purchase From
People Who Are Blind or Severely Disabled established by the
Act of June 23, 1971, Public Law 92–28; $1,800,000.
FEDERAL ELECTION COMMISSION
SALARIES AND EXPENSES

For necessary expenses to carry out the provisions of the Federal Election Campaign Act of 1971, as amended, $28,165,000,
of which no less than $2,500,000 shall be available for internal
automated data processing systems, and of which not to exceed
$5,000 shall be available for reception and representation expenses.

Independent
Agencies
Appropriations
Act, 1997.

110 STAT. 3009–331

PUBLIC LAW 104–208—SEPT. 30, 1996
FEDERAL LABOR RELATIONS AUTHORITY
SALARIES AND EXPENSES

For necessary expenses to carry out functions of the Federal
Labor Relations Authority, pursuant to Reorganization Plan Numbered 2 of 1978, and the Civil Service Reform Act of 1978, including
services as authorized by 5 U.S.C. 3109, including hire of experts
and consultants, hire of passenger motor vehicles, rental of conference rooms in the District of Columbia and elsewhere;
$21,588,000: Provided, That public members of the Federal Service
Impasses Panel may be paid travel expenses and per diem in
lieu of subsistence as authorized by law (5 U.S.C. 5703) for persons
employed intermittently in the Government service, and compensation as authorized by 5 U.S.C. 3109: Provided further, That notwithstanding 31 U.S.C. 3302, funds received from fees charged to nonFederal participants at labor-management relations conferences
shall be credited to and merged with this account, to be available
without further appropriation for the costs of carrying out these
conferences.
GENERAL SERVICES ADMINISTRATION
FEDERAL BUILDINGS FUND
LIMITATIONS ON AVAILABILITY OF REVENUE
(INCLUDING TRANSFER OF FUNDS)

For additional expenses necessary to carry out the purpose
of the Fund established pursuant to section 210(f) of the Federal
Property and Administrative Services Act of 1949, as amended
(40 U.S.C. 490(f)), $400,544,000, to be deposited into said Fund.
The revenues and collections deposited into the Fund shall be
available for necessary expenses of real property management and
related activities not otherwise provided for, including operation,
maintenance, and protection of federally owned and leased buildings; rental of buildings in the District of Columbia; restoration
of leased premises; moving governmental agencies (including space
adjustments and telecommunications relocation expenses) in connection with the assignment, allocation and transfer of space; contractual services incident to cleaning or servicing buildings, and moving;
repair and alteration of federally owned buildings including
grounds, approaches and appurtenances; care and safeguarding of
sites; maintenance, preservation, demolition, and equipment; acquisition of buildings and sites by purchase, condemnation, or as
otherwise authorized by law; acquisition of options to purchase
buildings and sites; conversion and extension of federally owned
buildings; preliminary planning and design of projects by contract
or otherwise; construction of new buildings (including equipment
for such buildings); and payment of principal, interest, taxes, and
any other obligations for public buildings acquired by installment
purchase and purchase contract, in the aggregate amount
of$5,555,544,000 of which (1) not to exceed $657,711,000 shall remain available until expended for construction of additional projects
and at maximum construction improvement costs (including funds
for sites and expenses and associated design and construction services) as follows:

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–332

New Construction:
California:
Fresno, Federal Building and U.S. Courthouse, $6,595,000
Colorado:
Denver, Rogers Federal Building-U.S. Courthouse,
$9,545,000
District of Columbia:
U.S. Courthouse Annex, $5,703,000
Florida:
Miami, U.S. Courthouse, $24,990,000
Orlando, U.S. Courthouse, $9,514,000
Kentucky:
Covington, U.S. Courthouse, $17,134,000
London, U.S. Courthouse, $13,732,000
Montana:
Babb, Piegan Border Station, $333,000
Sweetgrass, Border Station, $1,059,000
Nevada:
Las Vegas, U.S. Courthouse, $83,719,000
New York:
Brooklyn, U.S. Courthouse, $169,000,000
Ohio:
Cleveland, U.S. Courthouse, $128,559,000
Youngstown, U.S. Courthouse, $15,813,000
Oregon:
Portland, Consolidated Law Federal Office Building,
$4,750,000
Pennsylvania:
Erie, U.S. Courthouse Annex, $3,300,000
Philadelphia, DVA-Federal Complex, Phase II, $13,765,000
South Carolina:
Columbia, U.S. Courthouse Annex, $43,848,000
Texas:
Corpus Christi, U.S. Courthouse, $24,161,000
Utah:
Salt Lake City, Moss U.S. Courthouse Annex and Alteration, $11,474,000
Washington:
Blaine, U.S. Border Station, $13,978,000
Oroville, U.S. Border Station, $1,452,000
Seattle, U.S. Courthouse, $16,853,000
Sumas, U.S. Border Station (Claim), $1,177,000
Nationwide:
Non-prospectus construction projects, $10,000,000
Security Enhancements, $27,256,000:
Provided, That each of the immediately foregoing limits of costs
on new construction projects may be exceeded to the extent that
savings are affected in other such projects, but not to exceed 10
percent unless advance approval is obtained from the House and
Senate Committees on Appropriations of a greater amount: Provided
further, That the cost of future U.S. Courthouse annex projects
shall reflect savings through improving design efficiencies, curtailing planned interior finishes, requiring more efficient use of courtroom and library space, and by otherwise limiting space requirements: Providing further, That from funds available in the Federal
Buildings Fund, $20,000,000 shall be available until expended for
environmental clean up activities at the Southeast Federal Center

110 STAT. 3009–333

PUBLIC LAW 104–208—SEPT. 30, 1996

in the District of Columbia and $81,000,000 shall be available
until expended for design and construction activities at the Consolidated Law Federal Office Building in Portland, Oregon: Provied
further, That from funds available for non-prospectus construction
projects, $250,000 may be available until expended for the acquisition, lease, construction, and equipping of flexiplace work telecommuting centers in West Virginia: Provided further, That all
funds for direct construction projects shall expire on September
30, 1999: (2) not to exceed $639,000,000 shall remain available
until expended, for repairs and alterations which includes associated
design and construction services: Provided further, That funds in
the Federal Buildings Fund for Repairs and Alterations shall, for
prospectus projects, be limited to the amount by project as follows,
except each project may be increased by an amount not to exceed
10 per centum unless advance approval is obtained from the Committees on Appropriations of the House and Senate of a greater
amount:
Repairs and alterations:
District of Columbia:
Ariel Rios Building, $62,740,000
Justice Department, Phase 1 of 3, $50,000,000
Lafayette Building, $5,166,000
Hawaii:
Honolulu, Prince Jonah Kuhio Kalanianaole Federal Building and U.S. Courthouse, $4,140,000
Illinois:
Chicago, Everett M. Dirksen Federal Building, $18,844,000
Chicago, John C. Kluczynski, Jr. Federal Building (IRS),
$13,414,000
Louisiana:
New Orleans, Customhouse, $3,500,000
Maryland:
Montgomery County, White Oak environmental clean up
activities, $10,000,000
Massachusetts:
Andover, IRS Regional Service Center, $812,000
New Hampshire:
Concord, J.C. Cleveland Federal Building, $8,251,000
New Jersey:
Camden, U.S. Post Office-Courthouse $11,096,000
New York:
Albany, James T. Foley Post Office-Courthouse, $3,880,000
Brookhaven, IRS Service Center, $2,272,000
New York, Jacob K. Javits Federal Building, $13,651,000
Pennsylvania:
Scranton, Federal Building-U.S. Courthouse, $10,610,000
Rhode Island:
Providence, Federal Building-U.S. Courthouse, $8,209,000
Texas:
Fort Worth, Federal Center, $11,259,000
Nationwide:
Chlorofluorocarbons Program, $23,456,000
Elevator Program, $10,000,000
Energy Program, $20,000,000
Security Enhancements, various buildings, $2,700,000
Basic Repairs and Alterations, $345,000,000:

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–334

Provided further, That additional projects for which prospectuses
have been fully approved may be funded under this category only
if advance approval is obtained from the Committees on Appropriations of the House and Senate: Provided further, That the amounts
provided in this or any prior Act for Repairs and Alterations may
be used to fund costs associated with implementing security
improvements to buildings necessary to meet the minimum standards for security in accordance with current law and in compliance
with the reprogramming guidelines of the appropriate Committees
of the House and Senate: Provided further, That funds in the
Federal Buildings Fund for Repairs and Alterations shall, for
prospectus projects, be limited to the originally authorized amount,
except each project may be increased by an amount not to exceed
10 percent when advance approval is obtained from the Committees
on Appropriations of the House and Senate of a greater amount:
Provided further, That the difference between the funds appropriated and expended on any projects in this or any prior Act,
under the heading ‘‘Repairs and Alterations’’, may be transferred
to Basic Repairs and Alterations or used to fund authorized
increases in prospectus projects: Provided further, That from funds
made available for Basic Repairs and Alterations, $8,000,000 shall
be made available for renovation of the Agricultural Research Service Laboratory in Ames, Iowa, which is currently occupied by the
Animal and Plant Health Inspection Service: Provided further, That
from funds made available for Basic Repairs and Alterations,
$1,450,000 may be available for the renovation of the Pioneer Courthouse located at 520 SW Morrison, in Portland, Oregon: Provied
further, That from funds made available for Basic Repairs and
Alterations, $6,000,000 shall be used for necessary expenses associated with ongoing construction of the U.S. Courthouse in Montgomery, Alabama: Provided further, That from funds made available
for Basic Repairs and Alterations, $100,000 shall be transferred
to the National Park Service ‘‘Construction’’ appropriation for restoration and maintenance of the multi-purpose field at Wallenberg
Place in Washington, DC: Provided further, That all funds for
repairs and alterations prospectus projects shall expire on September 30, 1999, and remain in the Federal Buildings Fund except
funds for projects as to which funds for design or other funds
have been obligated in whole or in part prior to such date: Provided
further, That the amount provided in this or any prior Act for
Basic Repairs and Alterations may be used to pay claims against
the Government arising from any projects under the heading ‘‘Repairs and Alterations’’ or used to fund authorized increases in
prospectus projects: Provided further, That $5,700,000 of the funds
provided under this heading in Public Law 103–329, for the IRS
Service Center, Holtsville, New York, shall be available until September 30, 1998; (3) not to exceed $173,075,000 for installment
acquisition payments including payments on purchase contracts
which shall remain available until expended: Provided further, That
up to $1,500,000 shall be available for a design prospectus of
the Federal Building and U.S. Courthouse located at 811 Grand
Avenue in Kansas City, Missouri; (4) not to exceed $2,343,795,000
for rental of space which shall remain available until expended;
and (5) not to exceed $1,552,651,000 for building operations which
shall remain available until expended and of which $8,000,000
shall be transferred to the ‘‘Policy and Operations’’ appropriation:
Provided further, That funds available to the General Services

110 STAT. 3009–335

40 USC 872 note.

PUBLIC LAW 104–208—SEPT. 30, 1996

Administration shall not be available for expenses in connection
with any construction, repair, alteration, and acquisition project
for which a prospectus, if required by the Public Buildings Act
of 1959, as amended, has not been approved, except that necessary
funds may be expended for each project for required expenses
in connection with the development of a proposed prospectus: Provided further, That the Administrator of General Services shall,
at the earliest practicable date, initiate discussions with the Smithsonian Institution on the feasibility of transferring Federal Building
10B located at 600 Independence Avenue SW., Washington, DC
to the Smithsonian Institution at such price and under such terms
and conditions as determined appropriate by the Administrator
and subject to the prior approval of the appropriate authorizing
and appropriations committees of the Congress: Provided further,
That funds provided in this Act under the heading ‘‘Security Enhancements, various buildings’’ may be used, by project in accordance with an approved prospectus: Provided further, That the Administrator is authorized in fiscal year 1997 and thereafter, to
enter into and perform such leases, contracts, or other transactions
with any agency or instrumentality of the United States, the several
States, or the District of Columbia, or with any person, firm, association, or corporation, as may be necessary to implement the trade
center plan at the Federal Triangle Project and is hereby granted
all the rights and authorities of the former Pennsylvania Avenue
Development Corporation (PADC) with regard to property transferred from the PADC to the General Services Administration in
fiscal year 1996: Provided further, That notwithstanding any other
provision of law, the Administrator of General Services is hereby
authorized to use all funds transferred from the PADC or income
earned on PADC properties for activities associated with carrying
out the responsibilities of the PADC transferred to the Administrator of General Services and that any such income earned on
or after April 1, 1996, shall be deposited to the Pennsylvania
Avenue Activities account and shall remain available until expended: Provided further, That any funds or income as may be
deemed by the Administrator as excess to the amount needed
to fulfill the PADC responsibilities transferred to the Administrator
of General Services, shall be applied to any outstanding debt, with
the exception of debt associated with the Ronald Reagan Building
and International Trade Center, incurred by the PADC in the
course of acquiring real estate: Provided further, That with respect
to real property transferred from the PADC to the General Services
Administration pursuant to section 313 of Public Law 104–134,
Title III, General Provisions, the Administrator of General Services
is hereafter authorized and directed to make payments required
by section 10(b) of the PADC Act of 1972, Public Law 92–578
in the same manner as previously paid by the PADC: Provided
further, That for the purposes of this authorization, buildings constructed pursuant to the purchase contract authority of the Public
Buildings Amendments of 1972 (40 U.S.C. 602a), buildings occupied
pursuant to installment purchase contracts, and buildings under
the control of another department or agency where alterations
of such buildings are required in connection with the moving of
such other department or agency from buildings then, or thereafter
to be, under the control of the General Services Administration
shall be considered to be federally owned buildings: Provided further, That funds available in the Federal Buildings Fund may

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–336

be expended for emergency repairs when advance approval is obtained from the Committees on Appropriations of the House and
Senate: Provided further, That amounts necessary to provide reimbursable special services to other agencies under section 210(f)(6)
of the Federal Property and Administrative Services Act of 1949,
as amended (40 U.S.C. 490(f)(6)) and amounts to provide such
reimbursable fencing, lighting, guard booths, and other facilities
on private or other property not in Government ownership or control
as may be appropriate to enable the United States Secret Service
to perform its protective functions pursuant to 18 U.S.C. 3056,
as amended, shall be available from such revenues and collections:
Provided further, That revenues and collections and any other sums
accruing to this Fund during fiscal year 1997, excluding reimbursements under section 210(f)(6) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 490(f)(6)) in excess of
$5,555,544,000 shall remain in the Fund and shall not be available
for expenditure except as authorized in appropriations Acts.
POLICY AND OPERATIONS

For expenses authorized by law, not otherwise provided for,
for Government-wide policy and oversight activities associated with
asset management activities; utilization and donation of surplus
personal property; transportation management activities; procurement and supply management activities; Government-wide and
internal responsibilities relating to automated data management,
telecommunications, information resources management, and
related technology activities; utilization survey, deed compliance
inspection, appraisal, environmental and cultural analysis, and land
use planning functions pertaining to excess and surplus real property; agency-wide policy direction; Board of Contract Appeals;
accounting, records management, and other support services
incident to adjudication of Indian Tribal Claims by the United
States Court of Federal Claims; services as authorized by 5 U.S.C.
3109; and not to exceed $5,000 for official reception and representation expenses; $110,173,000.
OFFICE OF INSPECTOR GENERAL

For necessary expenses of the Office of Inspector General and
services authorized by 5 U.S.C. 3109, $33,863,000: Provided, That
not to exceed $5,000 shall be available for payment for information
and detection of fraud against the Government, including payment
for recovery of stolen Government property: Provided further, That
not to exceed $2,500 shall be available for awards to employees
of other Federal agencies and private citizens in recognition of
efforts and initiatives resulting in enhanced Office of Inspector
General effectiveness.
ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS

For carrying out the provisions of the Act of August 25, 1958,
as amended (3 U.S.C. 102 note), and Public Law 95–138, $2,180,000:
Provided, That the Administrator of General Services shall transfer
to the Secretary of the Treasury such sums as may be necessary
to carry out the provisions of such Acts.

110 STAT. 3009–337

PUBLIC LAW 104–208—SEPT. 30, 1996
EXPENSES, PRESIDENTIAL TRANSITION

For expenses necessary to carry out the Presidential Transition
Act of 1963, as amended (3 U.S.C. 102 note), $5,600,000.
GENERAL PROVISIONS—GENERAL SERVICES ADMINISTRATION

SECTION 401. The appropriate appropriation or fund available
to the General Services Administration shall be credited with the
cost of operation, protection, maintenance, upkeep, repair, and
improvement, included as part of rentals received from Government
corporations pursuant to law (40 U.S.C. 129).
SEC. 402. Funds available to the General Services Administration shall be available for the hire of passenger motor vehicles.
SEC. 403. Funds in the Federal Buildings Fund made available
for fiscal year 1997 for Federal Buildings Fund activities may
be transferred between such activities only to the extent necessary
to meet program requirements: Provided, That any proposed transfers shall be approved in advance by the Committees on Appropriations of the House and Senate.
SEC. 404. No funds made available by this Act shall be used
to transmit a fiscal year 1998 request for United States Courthouse
construction that does not meet the design guide standards for
construction as established by the General Services Administration,
the Judicial Conference of the United States, and the Office of
Management and Budget and does not reflect the priorities of
the Judicial Conference of the United States as set out in its
approved 5-year construction plan: Provided, That the request must
be accompanied by a standardized courtroom utilization study of
each facility to be replaced or expanded.
SEC. 405. None of the funds provided in this Act may be
used to increase the amount of occupiable square feet, provide
cleaning services, security enhancements, or any other service usually provided through the Federal Buildings Fund, to any agency
which does not pay the requested rate per square foot assessment
for space and services as determined by the General Services
Administration in compliance with the Public Buildings Amendments Act of 1972 (Public Law 92–313).
SEC. 406. The Administrator of the General Services is directed
to ensure that the materials used for the fascade on the United
States Courthouse Annex, Savannah, Georgia project are compatible
with the existing Savannah Federal Building-U.S. Courthouse
fascade, in order to ensure compatibility of this new facility with
the Savannah historic district and to ensure that the Annex will
not endanger the National Landmark status of the Savannah historic district.
SEC. 407. (a) Section 210 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 490) is amended by adding
at the end the following new subsection:
‘‘(l)(1) The Administrator may establish, acquire space for, and
equip flexiplace work telecommuting centers (in this subsection
referred to as ‘telecommuting centers’) for use by employees of
Federal agencies, State and local governments, and the private
sector in accordance with this subsection.
‘‘(2) The Administrator may make any telecommuting center
available for use by individuals who are not Federal employees
to the extent the center is not being fully utilized by Federal

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–338

employees. The Administrator shall give Federal employees priority
in using the telecommuting centers.
‘‘(3)(A) The Administrator shall charge user fees for the use
of any telecommuting center. The amount of the user fee shall
approximate commercial charges for comparable space and services
except that in no instance shall such fee be less than that necessary
to pay the cost of establishing and operating the center, including
the reasonable cost of renovation and replacement of furniture,
fixtures, and equipment.
‘‘(B) Amounts received by the Administrator after September
30, 1993, as user fees for use of any telecommuting center may
be deposited into the Fund established under subsection (f) of
this section and may be used by the Administrator to pay costs
incurred in the establishment and operation of the center.
‘‘(4) The Administrator may provide guidance, assistance, and
oversight to any person regarding establishment and operation
of alternative workplace arrangements, such as telecommuting,
hoteling, virtual offices, and other distributive work arrangements.
‘‘(5) In considering whether to acquire any space, quarters,
buildings, or other facilities for use by employees of any executive
agency, the head of that agency shall consider whether the need
for the facilities can be met using alternative workplace arrangements referred to in paragraph (4).’’.
(b) Section 13 of the Public Building Act of 1959, as amended,
(107 Stat. 438; 40 U.S.C. 612) is amended—
(1) by striking ‘‘(xi)’’ and inserting in lieu thereof ‘‘(xii)’’;
and
(2) by striking ‘‘and (x)’’ and inserting in lieu thereof ‘‘(x)
telecommuting centers and (xi)’’.
SEC. 408. Notwithstanding any other provision of law, the
Administrator of General Services is authorized and directed to
acquire the land bounded by S.W. First Avenue, S.W. Second
Avenue, S.W. Main Street, and S.W. Madison Street, Portland,
Oregon, for the purposes of constructing the proposed Law Enforcement Center on the site.
SEC. 409. Section 2815 of Public Law 103–160, relating to
the conveyance of real property at the Iowa Army Ammunition
Plant, is amended—
(1) in subsection (a), by striking ‘‘may convey to’’ and inserting ‘‘shall convey, without reimbursement and if requested by,’’;
and
(2) by striking subsection (b) and inserting the following
new subsection:
‘‘(b) USE OF WATER AND SEWER LINES.—As part of the conveyance under subsection (a), the Secretary shall permit the City
to use existing water and sewer lines and sewage system at the
Iowa Army Ammunition Plant for a three-year period beginning
on the date of the conveyance.’’.
SEC. 410. (a) CONVEYANCE OF LAND.—
(1) ADMINISTRATOR OF GENERAL SERVICES.—Subject to subsections (b) and (c), the Administrator of General Services
(hereinafter in this section referred to as the ‘‘Administrator’’)
shall convey, without compensation, to a nonprofit organization
known as the ‘‘Beaver County Corporation for Economic Development’’ all right, title, and interest of the United States in
and to those pieces or parcels of land in Hopewell Township,
Pennsylvania, described in subsection (b), together with all

110 STAT. 3009–339

PUBLIC LAW 104–208—SEPT. 30, 1996

improvements thereon and appurtenances thereto. The purpose
of the conveyance is to provide a site for economic development
in Hopewell Township.
(2) PROPERTY DESCRIPTION.—The land referred to in paragraph (1) is the parcel of land in the township of Hopewell,
county of Beaver, Pennsylvania, bounded and described as follows:
(A) Beginning at the southwest corner at a point common to Lot No. 1, same plan, lands now or formerly of
Frank and Catherine Wutter, and the easterly right-ofway line of Pennsylvania Legislative Route No. 60 (Beaver
Valley Expressway); thence proceeding by the easterly
right-of-way of Pennsylvania Legislative Route No. 60 by
the following three courses and distances:
(i) North 17 degrees, 14 minutes, 20 seconds West,
213.10 feet to a point.
(ii) North 72 degrees, 45 minutes, 40 seconds East,
30.00 feet to a point.
(iii) North 17 degrees, 14 minutes, 20 seconds
West, 252.91 feet to a point; on a line dividing Lot
No. 1 from the other part of Lot No. 1, said part
now called Lot No. 5, same plan; thence by last mentioned dividing line, North 78 degrees, 00 minutes,
00 seconds East; 135.58 feet to a point, a cul-de-sac
on Industrial Drive; thence by said cul-de-sac and the
southerly side of Industrial Drive by the following
courses and distances:
(I) By a curve to the right having a radius
of 100.00 feet for an arc distance of 243.401 feet
to a point.
(II) Thence by a curve to the right having
a radius of 100.00 feet for an arc distance of 86.321
feet to a point.
(III) Thence by 78 degrees, 00 minutes, 00
seconds East, 777.78 feet to a point.
(IV) Thence, North 12 degrees, 00 minutes,
00 seconds West, 74.71 feet to a point.
(V) Thence by a curve to the right, having
a radius of 50.00 feet for an arc distance of 78.54
feet to a point.
(VI) Thence North 78 degrees, 00 minutes,
00 seconds East, 81.24 feet to a point.
(VII) Thence by a curve to the right, having
a radius of 415.00 feet for an arc distance of 140.64
feet to a point.
(VIII) Thence, South 82 degrees, 35 minutes,
01 second East, 125.00 feet to a point.
(IX) Thence, South 7 degrees, 24 minutes, 59
seconds West, 5.00 feet to a point.
(X) Thence by a curve to the right, having
a radius of 320.00 feet for an arc distance of 256.85
feet to a point.
(XI) Thence by a curve to the right having
a radius of 50.00 feet for an arc distance of 44.18
feet to a point on the northerly side of Airport
Road.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–340

(B) Thence by the northerly side thereof by the following:
(i) South 14 degrees, 01 minutes, 54 seconds, West,
56.94 feet to a point.
(ii) Thence by a curve to the right having a radius
of 225.00 feet for an arc distance of 207.989 feet to
a point.
(iii) Thence South 66 degrees, 59 minutes, 45 seconds West, 192.08 feet to a point on the southern
boundary of Lot No. 1, which line is also the line
dividing Lot No. 1 from lands now or formerly, of
Frank and Catherine Wutter.
(C) Thence by the same, South 75 degrees, 01 minutes,
00 seconds West, 1,351.23 feet to a point at the place
of beginning.
(3) DATE OF CONVEYANCE.—The date of the conveyance
of property required under paragraph (1) shall be not later
than the 90th day following the date of the enactment of
this Act.
(4) CONVEYANCE TERMS.—
(A) TERMS AND CONDITIONS.—The conveyance of property required under paragraph (1) shall be subject to such
terms and conditions as may be determined by the Administrator to be necessary to safeguard the interests of the
United States. Such terms and conditions shall be consistent with the terms and conditions set forth in this section.
(B) QUITCLAIM DEED.—The conveyance of property
required under paragraph (1) shall be by quitclaim deed.
(b) LIMITATION ON CONVEYANCE.—No part of any land conveyed
under subsection (a) may be used, during the 30-year period beginning on the date of conveyance for any purpose other than economic
development.
(c) REVERSIONARY INTEREST.—
(1) IN GENERAL.—The property conveyed under subsection
(a) shall revert to the United States on any date in the 30year period beginning on the date of such conveyance on which
the property is used for a purpose other than economic development.
(2) ENFORCING REVERSION.—The Administrator shall perform all acts necessary to enforce any reversion of property
to the United States under this subsection.
(3) INVENTORY OF PUBLIC BUILDINGS SERVICE.—Property
that reverts to the United States under this subsection shall
be under the control of the General Services Administration.
SEC. 411. Notwithstanding any other provision of law, the
land contained in block 111 in the Federal District, Denver, Colorado, obtained pursuant to paragraphs (6) and (7) of section 12
of Public Law 94–204 (43 U.S.C. 1611 note) shall not be subject
to condemnation by any agency or instrumentality of the Federal
Government, without the consent of the owner of that land.
JOHN F. KENNEDY ASSASSINATION RECORDS REVIEW BOARD
For necessary expenses to carry out the John F. Kennedy
Assassination Records Collection Act of 1992, $2,150,000.

110 STAT. 3009–341

PUBLIC LAW 104–208—SEPT. 30, 1996
MERIT SYSTEMS PROTECTION BOARD
SALARIES AND EXPENSES
(INCLUDING TRANSFER OF FUNDS)

For necessary expenses to carry out functions of the Merit
Systems Protection Board pursuant to Reorganization Plan Numbered 2 of 1978 and the Civil Service Reform Act of 1978, including
services as authorized by 5 U.S.C. 3109, rental of conference rooms
in the District of Columbia and elsewhere, hire of passenger motor
vehicles, and direct procurement of survey printing, $23,923,000,
together with not to exceed $2,430,000 for administrative expenses
to adjudicate retirement appeals to be transferred from the Civil
Service Retirement and Disability Fund in amounts determined
by the Merit Systems Protection Board.
NATIONAL ARCHIVES

AND

RECORDS ADMINISTRATION

OPERATING EXPENSES

For necessary expenses in connection with the administration
of the National Archives (including the Information Security Oversight Office) and records and related activities, as provided by
law, and for expenses necessary for the review and declassification
of documents, and for the hire of passenger motor vehicles,
$196,963,000: Provided, That the Archivist of the United States
is authorized to use any excess funds available from the amount
borrowed for construction of the National Archives facility, for
expenses necessary to move into the facility.
ARCHIVES FACILITIES AND PRESIDENTIAL LIBRARIES
REPAIRS AND RESTORATION

For the repair, alteration, and improvement of archives facilities
and presidential libraries, and to provide adequate storage for holdings, $16,229,000 to remain available until expended.
NATIONAL HISTORICAL PUBLICATIONS AND RECORDS COMMISSION
GRANTS PROGRAM

For necessary expenses for allocations and grants for historical
publications and records as authorized by 44 U.S.C. 2504, as amended, $5,000,000 to remain available until expended.
OFFICE

OF

GOVERNMENT ETHICS

SALARIES AND EXPENSES

For necessary expenses to carry out functions of the Office
of Government Ethics pursuant to the Ethics in Government Act
of 1978, as amended by Public Law 100–598, and the Ethics Reform
Act of 1989, Public Law 101–194, including services as authorized
by 5 U.S.C. 3109, rental of conference rooms in the District of
Columbia and elsewhere, hire of passenger motor vehicles, and
not to exceed $1,500 for official reception and representation
expenses; $8,078,000.

PUBLIC LAW 104–208—SEPT. 30, 1996
OFFICE

OF

110 STAT. 3009–342

PERSONNEL MANAGEMENT

SALARIES AND EXPENSES
(INCLUDING TRANSFER OF TRUST FUNDS)

For necessary expenses to carry out functions of the Office
of Personnel Management pursuant to Reorganization Plan Numbered 2 of 1978 and the Civil Service Reform Act of 1978, including
services as authorized by 5 U.S.C. 3109; medical examinations
performed for veterans by private physicians on a fee basis; rental
of conference rooms in the District of Columbia and elsewhere;
hire of passenger motor vehicles; not to exceed $2,500 for official
reception and representation expenses; advances for reimbursements to applicable funds of the Office of Personnel Management
and the Federal Bureau of Investigation for expenses incurred
under Executive Order 10422 of January 9, 1953, as amended;
and payment of per diem and/or subsistence allowances to employees where Voting Rights Act activities require an employee to
remain overnight at his or her post of duty; $87,076,000, of which
not to exceed $1,000,000 shall be available for the establishment
of health promotion and disease prevention programs for Federal
employees; and in addition $94,736,000 for administrative expenses,
to be transferred from the appropriate trust funds of the Office
of Personnel Management without regard to other statutes, including direct procurement of printing materials for annuitants, for
the retirement and insurance programs, of which $3,500,000 shall
be transferred at such times as the Office of Personnel Management
deems appropriate, and shall remain available until expended for
the costs of automating the retirement recordkeeping systems,
together with remaining amounts authorized in previous Acts for
the recordkeeping systems: Provided, That the provisions of this
appropriation shall not affect the authority to use applicable trust
funds as provided by section 8348(a)(1)(B) of title 5, United States
Code: Provided further, That, except as may be consistent with
5 U.S.C. 8902a(f)(1) and (i), no payment may be made from the
Employees Health Benefits Fund to any physician, hospital, or
other provider of health care services or supplies who is, at the
time such services or supplies are provided to an individual covered
under chapter 89 of title 5, United States Code, excluded, pursuant
to section 1128 or 1128A of the Social Security Act (42 U.S.C.
1320a–7–1320a–7a), from participation in any program under title
XVIII of the Social Security Act (42 U.S.C. 1395 et seq.): Provided
further, That no part of this appropriation shall be available for
salaries and expenses of the Legal Examining Unit of the Office
of Personnel Management established pursuant to Executive Order
9358 of July 1, 1943, or any successor unit of like purpose: Provided
further, That the President’s Commission on White House Fellows,
established by Executive Order 11183 of October 3, 1964, may,
during the fiscal year ending September 30, 1997, accept donations
of money, property, and personal services in connection with the
development of a publicity brochure to provide information about
the White House Fellows, except that no such donations shall
be accepted for travel or reimbursement of travel expenses, or
for the salaries of employees of such Commission.

110 STAT. 3009–343

PUBLIC LAW 104–208—SEPT. 30, 1996

GENERAL PROVISIONS—OFFICE OF PERSONNEL MANAGEMENT

SEC. 421. The first sentence of section 1304(e)(1) of title 5,
United States Code, is amended by inserting after ‘‘basis’’ the following ‘‘, including personnel management services performed at the
request of individual agencies (which would otherwise be the responsibility of such agencies), or at the request of nonappropriated
fund instrumentalities’’.
SEC. 422. Paragraph (1) of section 8906(e) of title 5, United
States Code, is amended—
(1) by striking the last sentence of that paragraph and
redesignating the remainder of that paragraph as (1)(A);
(2) by adding at the end of paragraph (1)(A) (as so designated) the following:
‘‘(B) During each pay period in which an enrollment continues under subparagraph (A)—
‘‘(i) employee and Government contributions required
by this section shall be paid on a current basis; and
‘‘(ii) if necessary, the head of the employing agency
shall approve advance payment, recoverable in the same
manner as under section 5524a(c), of a portion of basic
pay sufficient to pay current employee contributions.
‘‘(C) Each agency shall establish procedures for accepting
direct payments of employee contributions for the purposes
of this paragraph.’’.
OFFICE OF INSPECTOR GENERAL
SALARIES AND EXPENSES
(INCLUDING TRANSFER OF TRUST FUNDS)

For necessary expenses of the Office of Inspector General in
carrying out the provisions of the Inspector General Act, as amended, including services as authorized by 5 U.S.C. 3109, hire of
passenger motor vehicles, $960,000; and in addition, not to exceed
$8,645,000 for administrative expenses to audit the Office of Personnel Management’s retirement and insurance programs, to be transferred from the appropriate trust funds of the Office of Personnel
Management, as determined by the Inspector General: Provided,
That the Inspector General is authorized to rent conference rooms
in the District of Columbia and elsewhere.
GOVERNMENT PAYMENT FOR ANNUITANTS, EMPLOYEES HEALTH
BENEFITS

For payment of Government contributions with respect to
retired employees, as authorized by chapter 89 of title 5, United
States Code, and the Retired Federal Employees Health Benefits
Act (74 Stat. 849), as amended, such sums as may be necessary.
GOVERNMENT PAYMENT FOR ANNUITANTS, EMPLOYEE LIFE
INSURANCE

For payment of Government contributions with respect to
employees retiring after December 31, 1989, as required by chapter
87 of title 5, United States Code, such sums as may be necessary.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–344

PAYMENT TO CIVIL SERVICE RETIREMENT AND DISABILITY FUND

For financing the unfunded liability of new and increased annuity benefits becoming effective on or after October 20, 1969, as
authorized by 5 U.S.C. 8348, and annuities under special Acts
to be credited to the Civil Service Retirement and Disability Fund,
such sums as may be necessary: Provided, That annuities authorized by the Act of May 29, 1944, as amended, and the Act of
August 19, 1950, as amended (33 U.S.C. 771–75), may hereafter
be paid out of the Civil Service Retirement and Disability Fund.
OFFICE

OF

33 USC 776.

SPECIAL COUNSEL

SALARIES AND EXPENSES

For necessary expenses to carry out functions of the Office
of Special Counsel pursuant to Reorganization Plan Numbered 2
of 1978, the Civil Service Reform Act of 1978 (Public Law 95–
454), the Whistleblower Protection Act of 1989 (Public Law 101–
12), Public Law 103–424, and the Uniformed Services Employment
and Reemployment Act of 1994 (Public Law 103–353), including
services as authorized by 5 U.S.C. 3109, payment of fees and
expenses for witnesses, rental of conference rooms in the District
of Columbia and elsewhere, and hire of passenger motor vehicles;
$8,116,000.
UNITED STATES TAX COURT
SALARIES AND EXPENSES

For necessary expenses, including contract reporting and other
services as authorized by 5 U.S.C. 3109, $33,781,000: Provided,
That travel expenses of the judges shall be paid upon the written
certificate of the judge.
This title may be cited as the ‘‘Independent Agencies Appropriations Act, 1997’’.
TITLE V—GENERAL PROVISIONS
THIS ACT
SECTION 501. 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. 502. The expenditure of any appropriation under this
Act for any consulting service through procurement contract, pursuant to 5 U.S.C. 3109, shall be limited to those contracts where
such expenditures are a matter of public record and available
for public inspection, except where otherwise provided under existing law, or under existing Executive order issued pursuant to existing law.
SEC. 503. Section 5131 of title 31, United States Code, is
amended—
(1) by striking subsection (c); and
(2) by redesignating subsection (d) as subsection (c).
SEC. 504. None of the funds made available by this Act shall
be available for any activity or for paying the salary of any Government employee where funding an activity or paying a salary to

26 USC 7443
note.

110 STAT. 3009–345

18 USC 3056
note.

PUBLIC LAW 104–208—SEPT. 30, 1996

a Government employee would result in a decision, determination,
rule, regulation, or policy that would prohibit the enforcement of
section 307 of the Tariff Act of 1930.
SEC. 505. None of the funds made available by this Act shall
be available for the purpose of transferring control over the Federal
Law Enforcement Training Center located at Glynco, Georgia, and
Artesia, New Mexico, out of the Treasury Department.
SEC. 506. 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. 507. No part of any appropriation contained in this Act
shall be available for the payment of the salary of any officer
or employee of the United States Postal Service, who—
(1) prohibits or prevents, or attempts or threatens to prohibit or prevent, any officer or employee of the United States
Postal Service from having any direct oral or written communication or contact with any Member or committee of Congress
in connection with any matter pertaining to the employment
of such officer or employee or pertaining to the United States
Postal Service in any way, irrespective of whether such communication or contact is at the initiative of such officer or employee
or in response to the request or inquiry of such Member or
committee; or
(2) removes, suspends from duty without pay, demotes,
reduces in rank, seniority, status, pay, or performance of efficiency rating, denies promotion to, relocates, reassigns, transfers, disciplines, or discriminates in regard to any employment
right, entitlement, or benefit, or any term or condition of
employment of, any officer or employee of the United States
Postal Service, or attempts or threatens to commit any of
the foregoing actions with respect to such officer or employee,
by reason of any communication or contact of such officer
or employee with any Member or committee of Congress as
described in paragraph (1).
SEC. 508. The Office of Personnel Management may, during
the fiscal year ending September 30, 1997, accept donations of
supplies, services, land, and equipment for the Federal Executive
Institute and Management Development Centers to assist in
enhancing the quality of Federal management.
SEC. 509. The United States Secret Service may, during the
fiscal year ending September 30, 1997, and hereafter, accept donations of money to off-set costs incurred while protecting former
Presidents and spouses of former Presidents when the former President or spouse travels for the purpose of making an appearance
or speech for a payment of money or any thing of value.
SEC. 510. No part of any appropriation contained in this Act
shall be available to pay the salary for any person filling a position,
other than a temporary position, formerly held by an employee
who has left to enter the Armed Forces of the United States and
has satisfactorily completed his period of active military or naval
service and has within 90 days after his release from such service
or from hospitalization continuing after discharge for a period of
not more than 1 year made application for restoration to his former
position and has been certified by the Office of Personnel Management as still qualified to perform the duties of his former position
and has not been restored thereto.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–346

SEC. 511. None of the funds made available in this Act may
be used to provide any non-public information such as mailing
or telephone lists to any person or any organization outside of
the Federal Government without the approval of the House and
Senate Committees on Appropriations.
SEC. 512. No funds appropriated pursuant to this Act may
be expended by an entity unless the entity agrees that in expending
the assistance the entity will comply with sections 2 through 4
of the Act of March 3, 1933 (41 U.S.C. 10a–10c, popularly known
as the ‘‘Buy American Act’’).
SEC. 513. (a) PURCHASE OF AMERICAN-MADE EQUIPMENT AND
PRODUCTS.—In the case of any equipment or products that may
be authorized to be purchased with financial assistance provided
under this Act, it is the sense of the Congress that entities receiving
such assistance should, in expending the assistance, purchase only
American-made equipment and products.
(b) NOTICE TO RECIPIENTS OF ASSISTANCE.—In providing financial assistance under this Act, the Secretary of the Treasury shall
provide to each recipient of the assistance a notice describing the
statement made in subsection (a) by the Congress.
SEC. 514. If it has been finally determined by a court or Federal
agency that any person intentionally affixed a label bearing a
‘‘Made in America’’ inscription, or any inscription with the same
meaning, to any product sold in or shipped to the United States
that is not made in the United States, such person shall be ineligible
to receive any contract or subcontract made with funds provided
pursuant to this Act, pursuant to the debarment, suspension, and
ineligibility procedures described in sections 9.400 through 9.409
of title 48, Code of Federal Regulations.
SEC. 515. Except as otherwise specifically provided by law,
not to exceed 50 percent of unobligated balances remaining available
at the end of fiscal year 1997 from appropriations made available
for salaries and expenses for fiscal year 1997 in this Act, shall
remain available through September 30, 1998, for each such account
for the purposes authorized: Provided, That a request shall be
submitted to the House and Senate Committees on Appropriations
for approval prior to the expenditure of such funds.
SEC. 516. Where appropriations in this Act are expendable
for travel expenses of employees and no specific limitation has
been placed thereon, the expenditures for such travel expenses
may not exceed the amount set forth in the budget estimates
submitted for appropriations without the advance approval of the
House and Senate Committees on Appropriations: Provided, That
this section shall not apply to travel performed by uncompensated
officials of local boards and appeal boards in the Selective Service
System; to travel performed directly in connection with care and
treatment of medical beneficiaries of the Department of Veterans
Affairs; to travel of the Office of Personnel Management in carrying
out its observation responsibilities of the Voting Rights Act; or
to payments to interagency motor pools separately set forth in
the budget schedules: Provided further, That this provision does
not apply to accounts that do not contain an object identification
for travel.
SEC. 517. Notwithstanding any other provision of law or regulation during the fiscal year ending September 30, 1997, and thereafter:

31 USC 5141
note.

110 STAT. 3009–347

PUBLIC LAW 104–208—SEPT. 30, 1996

(1) The authority of the special police officers of the Bureau
of Engraving and Printing, in the Washington, DC Metropolitan
area, extends to buildings and land under the custody and
control of the Bureau; to buildings and land acquired by or
for the Bureau through lease, unless otherwise provided by
the acquisition agency; to the streets, sidewalks and open areas
immediately adjacent to the Bureau along Wallenberg Place
(15th Street) and 14th Street between Independence and Maine
Avenues and C and D Streets between 12th and 14th Streets;
to areas which include surrounding parking facilities used by
Bureau employees, including the lots at 12th and C Streets,
SW, Maine Avenue and Water Streets, SW, Maiden Lane, the
Tidal Basin and East Potomac Park; to the protection in transit
of United States securities, plates and dies used in the production of United States securities, or other products or implements
of the Bureau of Engraving and Printing which the Director
of that agency so designates.
(2) The authority of the special police officers of the United
States Mint extends to the buildings and land under the custody
and control of the Mint; to the streets, sidewalks and open
areas in the vicinity to such facilities; to surrounding parking
facilities used by Mint employees; and to the protection in
transit of bullion, coins, dies, and other property and assets
of, or in the custody of, the Mint.
(3) The exercise of police authority by Bureau or Mint
officers, with the exception of the exercise of authority upon
property under the custody and control of the Bureau or the
Mint, respectively, shall be deemed supplementary to the Federal police force with primary jurisdictional responsibility. This
authority shall be in addition to any other law enforcement
authority which has been provided to these officers under other
provisions of law or regulations.
SEC. 518. No funds appropriated by this Act shall be available
to pay for an abortion, or the administrative expenses in connection
with any health plan under the Federal employees health benefit
program which provides any benefits or coverage for abortions.
SEC. 519. The provision of section 518 shall not apply where
the life of the mother would be endangered if the fetus were carried
to term, or the pregnancy is the result of an act of rape or incest.
SEC. 520. No part of any appropriation made available in this
Act shall be used to implement Bureau of Alcohol, Tobacco and
Firearms Ruling TD ATF–360; Re: Notice Nos. 782, 780, 91F009P.
SEC. 521. Notwithstanding title 5, United States Code, Personal
Service Contractors (PSC) employed by the Department of the
Treasury shall be considered as Federal Government employees
for purposes of making available Federal employee health and
life insurance.
SEC. 522. Section 5131 of title 31, United States Code, is
amended by striking subsection (c); and by redesignating subsection
(d) as subsection (c).
SEC. 523. Section 5112(i)(4) of title 31, United States Code,
is amended by adding at the end the following new subparagraph:
‘‘(C) The Secretary may continue to mint and issue coins in
accordance with the specifications contained in paragraphs (7), (8),
(9), and (10) of subsection (a) and paragraph (1)(A) of this subsection
at the same time the Secretary in minting and issuing other bullion
and proof gold coins under this subsection in accordance with such

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–348

program procedures and coin specifications, designs, varieties, quantities, denominations, and inscriptions as the Secretary, in the
Secretary’s discretion, may prescribe from time to time.’’: Provided,
That profits generated from the sale of gold to the United States
Mint for this program shall be considered as a receipt to be deposited into the General Fund of the Treasury.
SEC. 524. Section 5112 of title 31, United States Code, is
amended by adding at the end the following new subsection:
‘‘(k) The Secretary may mint and issue bullion and proof platinum coins in accordance with such specifications, designs, varieties,
quantities, denominations, and inscriptions as the Secretary, in
the Secretary’s discretion, may prescribe from time to time.’’: Provided, That the Secretary is authorized to use Government platinum
reserves stockpiled at the United States Mint as working inventory
and shall ensure that reserves utilized are replaced by the Mint.
SEC. 526. (a) REIMBURSEMENT OF CERTAIN ATTORNEY FEES
AND COSTS.—
(1) IN GENERAL.—The Secretary of the Treasury shall pay
from amounts appropriated in title I of this Act under the
heading, ‘‘Departmental Offices, Salaries and Expenses’’, up
to $500,000 to reimburse former employees of the White House
Travel Office whose employment in that Office was terminated
on May 19, 1993, for any attorney fees and costs they incurred
with respect to that termination.
(2) VERIFICATION REQUIRED.—The Secretary shall pay an
individual in full under paragraph (1) upon submission by
the individual of documentation verifying the attorney fees
and costs.
(3) NO INFERENCE OF LIABILITY.—Liability of the United
States shall not be inferred from enactment of or payment
under this subsection.
(b) LIMITATION ON FILING OF CLAIMS.—The Secretary of the
Treasury shall not pay any claim filed under this section that
is filed later than 120 days after the date of the enactment of
this Act.
(c) LIMITATION.—Payments under subsection (a) shall not
include attorney fees or costs incurred with respect to any Congressional hearing or investigation into the termination of employment
of the former employees of the White House Travel Office.
(d) REDUCTION.—The amount paid pursuant to this section
to an individual for attorney fees and costs described in subsection
(a) shall be reduced by any amount received before the date of
the enactment of this Act, without obligation for repayment by
the individual, for payment of such attorney fees and costs (including any amount received from the funds appropriated for the
individual in the matter relating to the ‘‘Office of the General
Counsel’’ under the heading ‘‘Office of the Secretary’’ in title I
of the Department of Transportation and Related Agencies Appropriations Act, 1994).
(e) PAYMENT IN FULL SETTLEMENT OF CLAIMS AGAINST THE
UNITED STATES.—Payment under this section, when accepted by
an individual described in subsection (a), shall be in full satisfaction
of all claims of, or on behalf of, the individual against the United
States that arose out of the termination of the White House Travel
Office employment of that individual on May 19, 1993.
SEC. 527. None of the funds made available in this Act may
be used by the Executive Office of the President to request from

31 USC 5112
note.

31 USC 5112
note.

110 STAT. 3009–349

PUBLIC LAW 104–208—SEPT. 30, 1996

the Federal Bureau of Investigation any official background investigation report on any individual, except when it is made known
to the Federal official having authority to obligate or expend such
funds that—
(1) such individual has given his or her express written
consent for such request not more than 6 months prior to
the date of such request and during the same presidential
administration; or
(2) such request is required due to extraordinary circumstances involving national security.
SEC. 528. (a) CLOSING OF ALLEY.—The alley bisecting the property on which a facility is being constructed for use by the United
States Government at 930 H Street, N.W., Washington, District
of Columbia, is closed to the public, without regard to any contingencies.
(b) JURISDICTION.—The Administrator of General Services shall
have administrative jurisdiction over, and shall hold title on behalf
of the United States in, the alley, property, and facility referred
to in subsection (a).
SEC. 529. (a) COMMEMORATIVE COIN PROGRAM RESTRICTIONS.—
Section 5112 of title 31, United States Code, as amended by sections
524 and 530 of this Act, is amended by adding at the end the
following new subsection:
‘‘(m) COMMEMORATIVE COIN PROGRAM RESTRICTIONS.—
‘‘(1) MAXIMUM NUMBER.—Beginning January 1, 1999, the
Secretary may mint and issue commemorative coins under this
section during any calendar year with respect to not more
than 2 commemorative coin programs.
‘‘(2) MINTAGE LEVELS.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), in carrying out any commemorative coin program, the
Secretary shall mint—
‘‘(i) not more than 750,000 clad half-dollar coins;
‘‘(ii) not more than 500,000 silver one-dollar coins;
and
‘‘(iii) not more than 100,000 gold five-dollar or
ten-dollar coins.
‘‘(B) EXCEPTION.—If the Secretary determines, based
on independent, market-based research conducted by a designated recipient organization of a commemorative coin
program, that the mintage levels described in subparagraph
(A) are not adequate to meet public demand for that
commemorative coin, the Secretary may waive one or more
of the requirements of subparagraph (A) with respect to
that commemorative coin program.
‘‘(C) DESIGNATED RECIPIENT ORGANIZATION DEFINED.—
For purposes of this paragraph, the term ‘designated recipient organization’ means any organization designated, under
any provision of law, as the recipient of any surcharge
imposed on the sale of any numismatic item.’’.
(b) RECOVERY OF MINT EXPENSES REQUIRED BEFORE PAYMENT
OF SURCHARGES TO ANY RECIPIENT ORGANIZATION.—
(1) CLARIFICATION OF LAW RELATING TO DEPOSIT OF SURCHARGES IN THE NUMISMATIC PUBLIC ENTERPRISE FUND.—Section 5134(c)(2) of title 31, United States Code, is amended
by inserting ‘‘, including amounts attributable to any surcharge

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–350

imposed with respect to the sale of any numismatic item’’
before the period.
(2) CONDITIONS ON PAYMENT OF SURCHARGES TO RECIPIENT
ORGANIZATIONS.—Section 5134 of title 31, United States Code,
is amended by adding at the end the following new subsection:
‘‘(f) CONDITIONS ON PAYMENT OF SURCHARGES TO RECIPIENT
ORGANIZATIONS.—
‘‘(1) PAYMENT OF SURCHARGES.—Notwithstanding any other
provision of law, no amount derived from the proceeds of any
surcharge imposed on the sale of any numismatic item shall
be paid from the fund to any designated recipient organization
unless—
‘‘(A) all numismatic operation and program costs allocable to the program under which such numismatic item
is produced and sold have been recovered; and
‘‘(B) the designated recipient organization submits an
audited financial statement that demonstrates to the satisfaction of the Secretary of the Treasury that, with respect
to all projects or purposes for which the proceeds of such
surcharge may be used, the organization has raised funds
from private sources for such projects and purposes in
an amount that is equal to or greater than the maximum
amount the organization may receive from the proceeds
of such surcharge.
‘‘(2) ANNUAL AUDITS.—
‘‘(A) ANNUAL AUDITS OF RECIPIENTS REQUIRED.—Each
designated recipient organization that receives any payment from the fund of any amount derived from the proceeds of any surcharge imposed on the sale of any numismatic item shall provide, as a condition for receiving any
such amount, for an annual audit, in accordance with generally accepted government auditing standards by an
independent public accountant selected by the organization,
of all such payments to the organization beginning in the
first fiscal year of the organization in which any such
amount is received and continuing until all amounts
received by such organization from the fund with respect
to such surcharges are fully expended or placed in trust.
‘‘(B) MINIMUM REQUIREMENTS FOR ANNUAL AUDITS.—
At a minimum, each audit of a designated recipient
organization pursuant to subparagraph (A) shall report—
‘‘(i) the amount of payments received by the designated recipient organization from the fund during
the fiscal year of the organization for which the audit
is conducted that are derived from the proceeds of
any surcharge imposed on the sale of any numismatic
item;
‘‘(ii) the amount expended by the designated recipient organization from the proceeds of such surcharges
during the fiscal year of the organization for which
the audit is conducted; and
‘‘(iii) whether all expenditures by the designated
recipient organization during the fiscal year of the
organization for which the audit is conducted from
the proceeds of such surcharges were for authorized
purposes.

110 STAT. 3009–351

PUBLIC LAW 104–208—SEPT. 30, 1996
‘‘(C) RESPONSIBILITY OF ORGANIZATION TO ACCOUNT FOR
EXPENDITURES OF SURCHARGES.—Each designated recipient

organization that receives any payment from the fund of
any amount derived from the proceeds of any surcharge
imposed on the sale of any numismatic item shall take
appropriate steps, as a condition for receiving any such
payment, to ensure that the receipt of the payment and
the expenditure of the proceeds of such surcharge by the
organization in each fiscal year of the organization can
be accounted for separately from all other revenues and
expenditures of the organization.
‘‘(D) SUBMISSION OF AUDIT REPORT.—Not later than
90 days after the end of any fiscal year of a designated
recipient organization for which an audit is required under
subparagraph (A), the organization shall—
‘‘(i) submit a copy of the report to the Secretary
of the Treasury; and
‘‘(ii) make a copy of the report available to the
public.
‘‘(E) USE OF SURCHARGES FOR AUDITS.—Any designated
recipient organization that receives any payment from the
fund of any amount derived from the proceeds of any
surcharge imposed on the sale of any numismatic item
may use the amount received to pay the cost of an audit
required under subparagraph (A).
‘‘(F) WAIVER OF PARAGRAPH.—The Secretary of the
Treasury may waive the application of any subparagraph
of this paragraph to any designated recipient organization
for any fiscal year after taking into account the amount
of surcharges that such organization received or expended
during such year.
‘‘(G) NONAPPLICABILITY TO FEDERAL ENTITIES.—This
paragraph shall not apply to any Federal agency or department or any independent establishment in the executive
branch that receives any payment from the fund of any
amount derived from the proceeds of any surcharge
imposed on the sale of any numismatic item.
‘‘(H) AVAILABILITY OF BOOKS AND RECORDS.—An
organization that receives any payment from the fund of
any amount derived from the proceeds of any surcharge
imposed on the sale of any numismatic item shall provide,
as a condition for receiving any such payment, to the
Inspector General of the Department of the Treasury or
the Comptroller General of the United States, upon the
request of such Inspector General or the Comptroller General, all books, records, and work papers belonging to or
used by the organization, or by any independent public
accountant who audited the organization in accordance
with subparagraph (A), which may relate to the receipt
or expenditure of any such amount by the organization.
‘‘(3) USE OF AGENTS OR ATTORNEYS TO INFLUENCE
COMMEMORATIVE COIN LEGISLATION.—No portion of any payment from the fund to any designated recipient organization
of any amount derived from the proceeds of any surcharge
imposed on the sale of any numismatic item may be used,
directly or indirectly, by the organization to compensate any
agent or attorney for services rendered to support or influence

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–352

in any way legislative action of the Congress relating to such
numismatic item.
‘‘(4) DESIGNATED RECIPIENT ORGANIZATION DEFINED.—For
purposes of this subsection, the term ‘designated recipient
organization’ means any organization designated, under any
provision of law, as the recipient of any surcharge imposed
on the sale of any numismatic item.’’.
(3) SCOPE OF APPLICATION.—The amendments made by this
section shall apply with respect to the proceeds of any surcharge
imposed on the sale of any numismatic item that are deposited
in the Numismatic Public Enterprise Fund after the date of
the enactment of this Act.
(4) REPEAL OF EXISTING RECIPIENT REPORT REQUIREMENT.—
Section 303 of Public Law 103–186 (31 U.S.C. 5112 note) is
repealed.
(c) QUARTERLY FINANCIAL REPORTS.—Section 5134 of title 31,
United States Code, is amended by adding at the end the following
new subsection:
‘‘(g) QUARTERLY FINANCIAL REPORTS.—
‘‘(1) IN GENERAL.—Not later than the 30th day of each
month following each calendar quarter through and including
the final period of sales with respect to any commemorative
coin program authorized on or after the date of enactment
of the Treasury, Postal Service, and General Government
Appropriations Act, 1997, the Mint shall submit to the Congress
a quarterly financial report in accordance with this subsection.
‘‘(2) REQUIREMENTS.—Each report submitted under paragraph (1) shall include, with respect to the calendar quarter
at issue—
‘‘(A) a detailed financial statement, prepared in accordance with generally accepted accounting principles, that
includes financial information specific to that quarter, as
well as cumulative financial information relating to the
entire program;
‘‘(B) a detailed accounting of—
‘‘(i) all costs relating to marketing efforts;
‘‘(ii) all funds projected for marketing use;
‘‘(iii) all costs for employee travel relating to the
promotion of commemorative coin programs;
‘‘(iv) all numismatic items minted, sold, not sold,
and rejected during the production process; and
‘‘(v) the costs of melting down all rejected and
unsold products;
‘‘(C) adequate market-based research for all commemorative coin programs; and
‘‘(D) a description of the efforts of the Mint in keeping
the sale price of numismatic items as low as practicable.’’.
(d) CITIZENS COMMEMORATIVE COIN ADVISORY COMMITTEE.—
(1) FIXED TERMS FOR MEMBERS.—Section 5135(a)(4) of title
31, United States Code, is amended to read as follows:
‘‘(4) TERMS.—Each member appointed under clause (i) or
(iii) of paragraph (3)(A) shall be appointed for a term of 4
years.’’.
(2) CHAIRPERSON.—Section 5135(a) of title 31, United
States Code, is amended by adding at the end the following
new paragraph:
‘‘(7) CHAIRPERSON.—

31 USC 5134
note.

110 STAT. 3009–353

31 USC 5112
note.

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(A) IN GENERAL.—Subject to subparagraph (B), the
Chairperson of the Advisory Committee shall be elected
by the members of the Advisory Committee from among
such members.
‘‘(B) EXCEPTION.—The member appointed pursuant to
paragraph (3)(A)(ii) (or the alternate to that member) may
not serve as the Chairperson of the Advisory Committee,
beginning on June 1, 1999.’’.
(e) EFFECTIVE DATE.—This section and the amendments made
by this section shall take effect on the date of enactment of this
Act.

TITLE VI—GENERAL PROVISIONS
DEPARTMENTS, AGENCIES,

31 USC 1343
note.

AND

CORPORATIONS

SECTION 601. Funds appropriated in this or any other Act
may be used to pay travel to the United States for the immediate
family of employees serving abroad in cases of death or life threatening illness of said employee.
SEC. 602. No department, agency, or instrumentality of the
United States receiving appropriated funds under this or any other
Act for fiscal year 1997 shall obligate or expend any such funds,
unless such department, agency, or instrumentality has in place,
and will continue to administer in good faith, a written policy
designed to ensure that all of its workplaces are free from the
illegal use, possession, or distribution of controlled substances (as
defined in the Controlled Substances Act) by the officers and
employees of such department, agency, or instrumentality.
SEC. 603. Notwithstanding 31 U.S.C. 1345, any agency, department or instrumentality of the United States which provides or
proposes to provide child care services for Federal employees may
reimburse any Federal employee or any person employed to provide
such services for travel, transportation, and subsistence expenses
incurred for training classes, conferences or other meetings in
connection with the provision of such services: Provided, That any
per diem allowance made pursuant to this section shall not exceed
the rate specified in regulations prescribed pursuant to section
5707 of title 5, United States Code.
SEC. 604. Unless otherwise specifically provided, the maximum
amount allowable during the current fiscal year in accordance with
section 16 of the Act of August 2, 1946 (60 Stat. 810), for the
purchase of any passenger motor vehicle (exclusive of buses, ambulances, law enforcement, and undercover surveillance vehicles), is
hereby fixed at $8,100 except station wagons for which the maximum shall be $9,100: Provided, That these limits may be exceeded
by not to exceed $3,700 for police-type vehicles, and by not to
exceed $4,000 for special heavy-duty vehicles: Provided further,
That the limits set forth in this section may not be exceeded
by more than 5 percent for electric or hybrid vehicles purchased
for demonstration under the provisions of the Electric and Hybrid
Vehicle Research, Development, and Demonstration Act of 1976:
Provided further, That the limits set forth in this section may
be exceeded by the incremental cost of clean alternative fuels
vehicles acquired pursuant to Public Law 101–549 over the cost
of comparable conventionally fueled vehicles.

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110 STAT. 3009–354

SEC. 605. Appropriations of the executive departments and
independent establishments for the current fiscal year available
for expenses of travel or for the expenses of the activity concerned,
are hereby made available for quarters allowances and cost-ofliving allowances, in accordance with 5 U.S.C. 5922–24.
SEC. 606. Unless otherwise specified during the current fiscal
year, no part of any appropriation contained in this or any other
Act shall be used to pay the compensation of any officer or employee
of the Government of the United States (including any agency
the majority of the stock of which is owned by the Government
of the United States) whose post of duty is in the continental
United States unless such person (1) is a citizen of the United
States, (2) is a person in the service of the United States on
the date of enactment of this Act who, being eligible for citizenship,
has filed a declaration of intention to become a citizen of the
United States prior to such date and is actually residing in the
United States, (3) is a person who owes allegiance to the United
States, (4) is an alien from Cuba, Poland, South Vietnam, the
countries of the former Soviet Union, or the Baltic countries lawfully
admitted to the United States for permanent residence, (5) is a
South Vietnamese, Cambodian, or Laotian refugee paroled in the
United States after January 1, 1975, or (6) is a national of the
People’s Republic of China who qualifys for adjustment of status
pursuant to the Chinese Student Protection Act of 1992: Provided,
That for the purpose of this section, an affidavit signed by any
such person shall be considered prima facie evidence that the
requirements of this section with respect to his or her status have
been complied with: Provided further, That any person making
a false affidavit shall be guilty of a felony, and, upon conviction,
shall be fined no more than $4,000 or imprisoned for not more
than 1 year, or both: Provided further, That the above penal clause
shall be in addition to, and not in substitution for, any other
provisions of existing law: Provided further, That any payment
made to any officer or employee contrary to the provisions of this
section shall be recoverable in action by the Federal Government.
This section shall not apply to citizens of Ireland, Israel, or the
Republic of the Philippines, or to nationals of those countries allied
with the United States in the current defense effort, or to international broadcasters employed by the United States Information
Agency, or to temporary employment of translators, or to temporary
employment in the field service (not to exceed 60 days) as a result
of emergencies.
SEC. 607. Appropriations available to any department or agency
during the current fiscal year for necessary expenses, including
maintenance or operating expenses, shall also be available for payment to the General Services Administration for charges for space
and services and those expenses of renovation and alteration of
buildings and facilities which constitute public improvements performed in accordance with the Public Buildings Act of 1959 (73
Stat. 749), the Public Buildings Amendments of 1972 (87 Stat.
216), or other applicable law.
SEC. 608. In addition to funds provided in this or any other
Act, all Federal agencies are authorized to receive and use funds
resulting from the sale of materials, including Federal records disposed of pursuant to a records schedule recovered through recycling
or waste prevention programs. Such funds shall be available until
expended for the following purposes:

5 USC 3101 note.

110 STAT. 3009–355

40 USC 486a.

31 USC 1306
note.

PUBLIC LAW 104–208—SEPT. 30, 1996

(1) Acquisition, waste reduction and prevention, and
recycling programs as described in Executive Order 12873
(October 20, 1993), including any such programs adopted prior
to the effective date of the Executive Order.
(2) Other Federal agency environmental management programs, including, but not limited to, the development and
implementation of hazardous waste management and pollution
prevention programs.
(3) Other employee programs as authorized by law or as
deemed appropriate by the head of the Federal agency.
SEC. 609. Funds made available by this or any other Act for
administrative expenses in the current fiscal year of the corporations and agencies subject to chapter 91 of title 31, United States
Code, shall be available, in addition to objects for which such
funds are otherwise available, for rent in the District of Columbia;
services in accordance with 5 U.S.C. 3109; and the objects specified
under this head, all the provisions of which shall be applicable
to the expenditure of such funds unless otherwise specified in
the Act by which they are made available: Provided, That in the
event any functions budgeted as administrative expenses are subsequently transferred to or paid from other funds, the limitations
on administrative expenses shall be correspondingly reduced.
SEC. 610. No part of any appropriation for the current fiscal
year contained in this or any other Act shall be paid to any person
for the filling of any position for which he or she has been nominated
after the Senate has voted not to approve the nomination of said
person.
SEC. 611. For the fiscal year ending September 30, 1997, and
thereafter, any department or agency to which the Administrator
of General Services has delegated the authority to operate, maintain
or repair any building or facility pursuant to section 205(d) of
the Federal Property and Administrative Services Act of 1949,
as amended, shall retain that portion of the GSA rental payment
available for operation, maintenance or repair of the building or
facility, as determined by the Administrator, and expend such funds
directly for the operation, maintenance or repair of the building
or facility. Any funds retained under this section shall remain
available until expended for such purposes.
SEC. 612. (a) IN GENERAL.—Section 1306 of title 31, United
States Code, is amended to read as follows:
‘‘§ 1306. Use of foreign credits
‘‘(a) IN GENERAL.—Foreign credits (including currencies) owed
to or owned by the United States may be used by any agency
for any purpose for which appropriations are made for the agency
for the current fiscal year (including the carrying out of Acts requiring or authorizing the use of such credits), but only when reimbursement therefor is made to the Treasury from applicable appropriations of the agency.
‘‘(b) EXCEPTION TO REIMBURSEMENT REQUIREMENT.—Credits
described in subsection (a) that are received as exchanged allowances, or as the proceeds of the sale of personal property, may
be used in whole or partial payment for the acquisition of similar
items, to the extent and in the manner authorized by law, without
reimbursement to the Treasury.’’.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–356

(b) APPLICABILITY.—The amendment made by this section shall
take effect on the date of the enactment of this Act and shall
apply thereafter.
SEC. 613. No part of any appropriation contained in this or
any other Act shall be available for interagency financing of
boards(except Federal Executive Boards), commissions, councils,
committees, or similar groups (whether or not they are interagency
entities) which do not have a prior and specific statutory approval
to receive financial support from more than one agency or
instrumentality.
SEC. 614. Funds made available by this or any other Act to
the ‘‘Postal Service Fund’’ (39 U.S.C. 2003) shall be available for
employment of guards for all buildings and areas owned or occupied
by the Postal Service and under the charge and control of the
Postal Service, and such guards shall have, with respect to such
property, the powers of special policemen provided by the first
section of the Act of June 1, 1948, as amended (62 Stat. 281;
40 U.S.C. 318), and, as to property owned or occupied by the
Postal Service, the Postmaster General may take the same actions
as the Administrator of General Services may take under the provisions of sections 2 and 3 of the Act of June 1, 1948, as amended
(62 Stat. 281; 40 U.S.C. 318a, 318b), attaching thereto penal consequences under the authority and within the limits provided in
section 4 of the Act of June 1, 1948, as amended (62 Stat. 281;
40 U.S.C. 318c).
SEC. 615. None of the funds made available pursuant to the
provisions of this Act shall be used to implement, administer, or
enforce any regulation which has been disapproved pursuant to
a resolution of disapproval duly adopted in accordance with the
applicable law of the United States.
SEC. 616. (a) Notwithstanding any other provision of law, and
except as otherwise provided in this section, no part of any of
the funds appropriated for the fiscal year ending on September
30, 1997, by this or any other Act, may be used to pay any prevailing
rate employee described in section 5342(a)(2)(A) of title 5, United
States Code—
(1) during the period from the date of expiration of the
limitation imposed by section 616 of the Treasury, Postal Service and General Government Appropriations Act, 1996, until
the normal effective date of the applicable wage survey adjustment that is to take effect in fiscal year 1997, in an amount
that exceeds the rate payable for the applicable grade and
step of the applicable wage schedule in accordance with such
section 616; and
(2) during the period consisting of the remainder of fiscal
year 1997, in an amount that exceeds, as a result of a wage
survey adjustment, the rate payable under paragraph (1) by
more than the sum of—
(A) the percentage adjustment taking effect in fiscal
year 1997 under section 5303 of title 5, United States
Code, in the rates of pay under the General Schedule;
and
(B) the difference between the overall average percentage of the locality-based comparability payments taking
effect in fiscal year 1997 under section 5304 of such title

5 USC 5343.

110 STAT. 3009–357

PUBLIC LAW 104–208—SEPT. 30, 1996

(whether by adjustment or otherwise), and the overall average percentage of such payments which was effective in
fiscal year 1996 under such section.
(b) Notwithstanding any other provision of law, no prevailing
rate employee described in subparagraph (B) or (C) of section
5342(a)(2) of title 5, United States Code, and no employee covered
by section 5348 of such title, may be paid during the periods
for which subsection (a) is in effect at a rate that exceeds the
rates that would be payable under subsection (a) were subsection
(a) applicable to such employee.
(c) For the purposes of this section, the rates payable to an
employee who is covered by this section and who is paid from
a schedule not in existence on September 30, 1996, shall be determined under regulations prescribed by the Office of Personnel
Management.
(d) Notwithstanding any other provision of law, rates of premium pay for employees subject to this section may not be changed
from the rates in effect on September 30, 1996, except to the
extent determined by the Office of Personnel Management to be
consistent with the purpose of this section.
(e) This section shall apply with respect to pay for service
performed after September 30, 1996.
(f) For the purpose of administering any provision of law
(including section 8431 of title 5, United States Code, and any
rule or regulation that provides premium pay, retirement, life insurance, or any other employee benefit) that requires any deduction
or contribution, or that imposes any requirement or limitation on
the basis of a rate of salary or basic pay, the rate of salary or
basic pay payable after the application of this section shall be
treated as the rate of salary or basic pay.
(g) Nothing in this section shall be considered to permit or
require the payment to any employee covered by this section at
a rate in excess of the rate that would be payable were this section
not in effect.
(h) The Office of Personnel Management may provide for exceptions to the limitations imposed by this section if the Office determines that such exceptions are necessary to ensure the recruitment
or retention of qualified employees.
SEC. 617. During the period in which the head of any department or agency, or any other officer or civilian employee of the
Government appointed by the President of the United States, holds
office, no funds may be obligated or expended in excess of $5,000
to furnish or redecorate the office of such department head, agency
head, officer or employee, or to purchase furniture or make improvements for any such office, unless advance notice of such furnishing
or redecoration is expressly approved by the Committees on Appropriations of the House and Senate. For the purposes of this section,
the word ‘‘office’’ shall include the entire suite of offices assigned
to the individual, as well as any other space used primarily by
the individual or the use of which is directly controlled by the
individual.
SEC. 618. Notwithstanding any other provision of law, no executive branch agency shall purchase, construct, and/or lease any additional facilities, except within or contiguous to existing locations,
to be used for the purpose of conducting Federal law enforcement
training without the advance approval of the House and Senate
Committees on Appropriations.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–358

SEC. 619. Notwithstanding section 1346 of title 31, United
States Code, or section 613 of this Act, funds made available for
fiscal year 1997 by this or any other Act shall be available for
the interagency funding of national security and emergency
preparedness telecommunications initiatives which benefit multiple
Federal departments, agencies, or entities, as provided by Executive
Order Numbered 12472 (April 3, 1984).
SEC. 620. (a) None of the funds appropriated by this or any
other Act may be obligated or expended by any Federal department,
agency, or other instrumentality for the salaries or expenses of
any employee appointed to a position of a confidential or policydetermining character excepted from the competitive service pursuant to section 3302 of title 5, United States Code, without a certification to the Office of Personnel Management from the head of
the Federal department, agency, or other instrumentality employing
the Schedule C appointee that the Schedule C position was not
created solely or primarily in order to detail the employee to the
White House.
(b) The provisions of this section shall not apply to Federal
employees or members of the armed services detailed to or from—
(1) the Central Intelligence Agency;
(2) the National Security Agency;
(3) the Defense Intelligence Agency;
(4) the offices within the Department of Defense for the
collection of specialized national foreign intelligence through
reconnaissance programs;
(5) the Bureau of Intelligence and Research of the Department of State;
(6) any agency, office, or unit of the Army, Navy, Air
Force, and Marine Corps, the Federal Bureau of Investigation
and the Drug Enforcement Administration of the Department
of Justice, the Department of Transportation, the Department
of the Treasury, and the Department of Energy performing
intelligence functions; and
(7) the Director of Central Intelligence.
SEC. 621. No department, agency, or instrumentality of the
United States receiving appropriated funds under this or any other
Act for fiscal year 1997 shall obligate or expend any such funds,
unless such department, agency or instrumentality has in place,
and will continue to administer in good faith, a written policy
designed to ensure that all of its workplaces are free from discrimination and sexual harassment and that all of its workplaces are
not in violation of title VII of the Civil Rights Act of 1964, as
amended, the Age Discrimination in Employment Act of 1967, and
the Rehabilitation Act of 1973.
SEC. 622. No part of any appropriation contained in this Act
may be used to pay for the expenses of travel of employees, including
employees of the Executive Office of the President, not directly
responsible for the discharge of official governmental tasks and
duties: Provided, That this restriction shall not apply to the family
of the President, Members of Congress or their spouses, Heads
of State of a foreign country or their designees, persons providing
assistance to the President for official purposes, or other individuals
so designated by the President.
SEC. 623. Notwithstanding any provision of law, the President,
or his designee, must certify to Congress, annually, that no person
or persons with direct or indirect responsibility for administering

5 USC 7301 note.

110 STAT. 3009–359

PUBLIC LAW 104–208—SEPT. 30, 1996

the Executive Office of the President’s Drug-Free Workplace Plan
are themselves subject to a program of individual random drug
testing.
SEC. 624. (a) None of the funds made available in this Act
or any other Act may be obligated or expended for any employee
training when it is made known to the Federal official having
authority to obligate or expend such funds that such employee
training—
(1) does not meet identified needs for knowledge, skills,
and abilities bearing directly upon the performance of official
duties;
(2) contains elements likely to induce high levels of emotional response or psychological stress in some participants;
(3) does not require prior employee notification of the content and methods to be used in the training and written end
of course evaluation;
(4) contains any methods or content associated with religious or quasi-religious belief systems or ‘‘new age’’ belief systems as defined in Equal Employment Opportunity Commission
Notice N–915.022, dated September 2, 1988;
(5) is offensive to, or designed to change, participants’
personal values or lifestyle outside the workplace; or
(6) includes content related to human immunodeficiency
virus/acquired immune deficiency syndrome (HIV/AIDS) other
than that necessary to make employees more aware of the
medical ramifications of HIV/AIDS and the workplace rights
of HIV-positive employees.
(b) Nothing in this section shall prohibit, restrict, or otherwise
preclude an agency from conducting training bearing directly upon
the performance of official duties.
SEC. 625. No funds appropriated in this or any other Act
for fiscal year 1997 may be used to implement or enforce the
agreements in Standard Forms 312 and 4355 of the Government
or any other nondisclosure policy, form, or agreement if such policy,
form, or agreement does not contain the following provisions: ‘‘These
restrictions are consistent with and do not supersede, conflict with,
or otherwise alter the employee obligations, rights, or liabilities
created by Executive Order 12356; section 7211 of title 5, United
States Code (governing disclosures to Congress); section 1034 of
title 10, United States Code, as amended by the Military Whistleblower Protection Act (governing disclosure to Congress by members
of the military); section 2302(b)(8) of title 5, United States Code,
as amended by the Whistleblower Protection Act (governing disclosures of illegality, waste, fraud, abuse or public health or safety
threats); the Intelligence Identities Protection Act of 1982 (50 U.S.C.
421 et seq.) (governing disclosures that could expose confidential
Government agents); and the statutes which protect against disclosure that may compromise the national security, including sections
641, 793, 794, 798, and 952 of title 18, United States Code, and
section 4(b) of the Subversive Activities Act of 1950 (50 U.S.C.
section 783(b)). The definitions, requirements, obligations, rights,
sanctions, and liabilities created by said Executive Order and listed
statutes are incorporated into this agreement and are controlling.’’:
Provided, That notwithstanding the preceding paragraph, a nondisclosure policy form or agreement that is to be executed by a
person connected with the conduct of an intelligence or intelligencerelated activity, other than an employee or officer of the United

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–360

States Government, may contain provisions appropriate to the
particular activity for which such document is to be used. Such
form or agreement shall, at a minimum, require that the person
will not disclose any classified information received in the course
of such activity unless specifically authorized to do so by the United
States Government. Such nondisclosure forms shall also make it
clear that they do not bar disclosures to Congress or to an authorized official of an executive agency or the Department of Justice
that are essential to reporting a substantial violation of law.
SEC. 626. (a) None of the funds appropriated by this or any
other Act may be expended by any Federal Agency to procure
any product or service subject to section 5124 of Public Law 104–
106 and that will be available under the procurement by the
Administrator of General Services known as ‘‘FTS2000’’ unless—
(1) such product or service is procured by the Administrator
of General Services as part of the procurement known as
‘‘FTS2000’’; or
(2) that agency establishes to the satisfaction of the
Administrator of General Services that—
(A) that agency’s requirements for such procurement
are unique and cannot be satisfied by property and service
procured by the Administrator of General Services as part
of the procurement known as ‘‘FTS2000’’; and
(B) the agency procurement, pursuant to such delegation, would be cost-effective and would not adversely affect
the cost-effectiveness of the FTS2000 procurement.
(b) After December 31, 1998, subsection (a) shall apply only
if the Administrator of General Services has reported that the
FTS2000 procurement is producing prices that allow the Government to satisfy its requirements for such procurement in the most
cost-effective manner.
SEC. 627. Subsection (f) of section 403 of Public Law 103–
356 is amended by deleting ‘‘October 1, 1999’’ and inserting ‘‘October
1, 2001’’.
SEC. 628. (a) IN GENERAL.—Notwithstanding any other provision of law, none of the funds made available by this Act for
the Department of the Treasury shall be available for any activity
or for paying the salary of any Government employee where funding
an activity or paying a salary to a Government employee would
result in a decision, determination, rule, regulation, or policy that
would permit the Secretary of the Treasury to make any loan
or extension of credit under section 5302 of title 31, United States
Code, with respect to a single foreign entity or government of
a foreign country (including agencies or other entities of that government)—
(1) with respect to a loan or extension of credit for more
than 60 days, unless the President certifies to the Committee
on Banking, Housing, and Urban Affairs of the Senate and
the Committee on Banking and Financial Services of the House
of Representatives that—
(A) there is no projected cost (as that term is defined
in section 502 of the Federal Credit Reform Act of 1990)
to the United States from the proposed loan or extension
of credit; and
(B) any proposed obligation or expenditure of United
States funds to or on behalf of the foreign government
is adequately backed by an assured source of repayment

31 USC 501 note.

110 STAT. 3009–361

PUBLIC LAW 104–208—SEPT. 30, 1996

to ensure that all United States funds will be repaid;
and
(2) other than as provided by an Act of Congress, if that
loan or extension of credit would result in expenditures and
obligations, including contingent obligations, aggregating more
than $1,000,000,000 with respect to that foreign country for
more than 180 days during the 12-month period beginning
on the date on which the first such action is taken.
(b) WAIVER OF LIMITATIONS.—The President may exceed the
dollar and time limitations in subsection (a)(2) if he certifies in
writing to the Congress that a financial crisis in that foreign country
poses a threat to vital United States economic interests or to the
stability of the international financial system.
(c) EXPEDITED PROCEDURES FOR A RESOLUTION OF DISAPPROVAL.—A presidential certification pursuant to subsection (b)
shall not take effect, if the Congress, within 30 calendar days
after receiving such certification, enacts a joint resolution of disapproval, as described in paragraph (5) of this subsection.
(1) REFERENCE TO COMMITTEES.—All joint resolutions introduced in the Senate to disapprove the certification shall be
referred to the Committee on Banking, Housing, and Urban
Affairs, and in the House of Representatives, to the appropriate
committees.
(2) DISCHARGE OF COMMITTEES.—(A) If the committee of
either House to which a resolution has been referred has not
reported it at the end of 15 days after its introduction, it
is in order to move either to discharge the committee from
further consideration of the joint resolution or to discharge
the committee from further consideration of any other resolution introduced with respect to the same matter, except no
motion to discharge shall be in order after the committee has
reported a joint resolution with respect to the same matter.
(B) A motion to discharge may be made only by an individual favoring the resolution, and is privileged in the Senate;
and debate thereon shall be limited to not more than 1 hour,
the time to be divided in the Senate equally between, and
controlled by, the majority leader and the minority leader or
their designees.
(3) FLOOR CONSIDERATION IN THE SENATE.—(A) A motion
in the Senate to proceed to the consideration of a resolution
shall be privileged.
(B) Debate in the Senate on a resolution, and all debatable
motions and appeals in connection therewith, shall be limited
to not more than 4 hours, to be equally divided between, and
controlled by, the majority leader and the minority leader or
their designees.
(C) Debate in the Senate on any debatable motion or appeal
in connection with a resolution shall be limited to not more
than 20 minutes, to be equally divided between, and controlled
by, the mover and the manager of the resolution, except that
in the event the manager of the resolution is in favor of any
such motion or appeal, the time in opposition thereto, shall
be controlled by the minority leader or his designee. Such
leaders, or either of them, may, from time under their control
on the passage of a resolution, allot additional time to any
Senator during the consideration of any debatable motion or
appeal.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–362

(D) A motion in the Senate to further limit debate on
a resolution, debatable motion, or appeal is not debatable.
No amendment to, or motion to recommit, a resolution is in
order in the Senate.
(4) In the case of a resolution, if prior to the passage
by one House of a resolution of that House, that House receives
a resolution with respect to the same matter from the other
House, then—
(A) the procedure in that House shall be the same
as if no resolution had been received from the other House;
but
(B) the vote on final passage shall be on the resolution
of the other House.
(5) For purposes of this subsection, the term ‘‘joint resolution’’ means only a joint resolution of the 2 Houses of Congress,
the matter after the resolving clause of which is as follows:
‘‘That the Congress disapproves the action of the President
under section 628(c) of the Treasury, Postal Service, and General Government Appropriations Act, 1997, notice of which
was submitted to the Congress on
.’’, with the
blank space being filled with the appropriate date.
(d) APPLICABILITY.—This section—
(1) shall not apply to any action taken as part of the
program of assistance to Mexico announced by the President
on January 31, 1995; and
(2) shall remain in effect through fiscal year 1997.
SEC. 629. (a) TECHNICAL AMENDMENT.—Section 640 of Public
Law 104–52 (109 Stat. 513) is amended by striking ‘‘Service performed’’ and inserting ‘‘Hereafter, service performed’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall take effect as if included in Public Law 104–52 on the date
of its enactment.
SEC. 630. Notwithstanding any other provision of law, no part
of any appropriation contained in this Act for any fiscal year shall
be available for paying Sunday premium or differential pay to
any employee unless such employee actually performed work during
the time corresponding to such premium or differential pay.
SEC. 631. No part of any funds appropriated in this or any
other Act shall be used by an agency of the executive branch,
other than for normal and recognized executive-legislative relationships, for publicity or propaganda purposes, and for the preparation,
distribution or use of any kit, pamphlet, booklet, publication, radio,
television or film presentation designed to support or defeat legislation pending before the Congress, except in presentation to the
Congress itself.
SEC. 632. (a) The United States Courthouse under construction
at 1030 Southwest 3d Avenue in Portland, Oregon, shall be known
and designated as the ‘‘Mark O. Hatfield United States Courthouse’’.
(b) Any reference in a law, map, regulation, document, paper,
or other record of the United States to the courthouse referred
to in section 901 shall be deemed to be a reference to the ‘‘Mark
O. Hatfield United States Courthouse’’.
(c) This section shall take effect on January 2, 1997.
SEC. 633. SURVIVOR ANNUITY RESUMPTION UPON TERMINATION
OF MARRIAGE.—(a) AMENDMENTS.—

lllllll

5 USC 8401 note.
5 USC 8401 note.

110 STAT. 3009–363

5 USC 8341 note.

5 USC prec. 5941
note.

PUBLIC LAW 104–208—SEPT. 30, 1996

(1) CIVIL SERVICE RETIREMENT SYSTEM.—Section 8341(e)
of title 5, United States Code, is amended by adding at the
end the following:
‘‘(4) If the annuity of a child under this subchapter terminates
under paragraph (3)(E) because of marriage, then, if such marriage
ends, such annuity shall resume on the first day of the month
in which it ends, but only if—
‘‘(A) any lump sum paid is returned to the Fund; and
‘‘(B) that individual is not otherwise ineligible for such
annuity.’’.
(2) FEDERAL EMPLOYEES’ RETIREMENT SYSTEM.—Section
8443(b) of such title is amended by adding at the end the
following: ‘‘If the annuity of a child under this subchapter
terminates under subparagraph (E) because of marriage, then,
if such marriage ends, such annuity shall resume on the first
day of the month in which it ends, but only if any lump
sum paid is returned to the Fund, and that individual is not
otherwise ineligible for such annuity.’’.
(3) FEDERAL EMPLOYEES HEALTH BENEFITS.—Section 8908
of title 5, United States Code, is amended by adding at the
end of the following new subsection:
‘‘(d) A surviving child whose survivor annuity under section
8341(e) or 8443(b) was terminated and is later restored under
paragraph (4) of section 8341(e) or the last sentence of section
8443(b) may, under regulations prescribed by the Office, enroll
in a health benefits plan described by section 8903 or 8903a if
such surviving child was covered by any such plan immediately
before such annuity was terminated.’’.
(b) APPLICABILITY.—The amendments made by subsection (a)
shall apply with respect to any termination of marriage taking
effect before, on, or after the date of enactment of this Act, except
that benefits shall be payable only with respect to amounts accruing
for periods beginning on the first day of the month beginning
after the later of such termination of marriage or such date of
enactment.
SEC. 634. AVAILABILITY OF ANNUAL LEAVE FOR EMPLOYEES
AFFECTED BY REDUCTION IN FORCE.—Section 6302 of title 5, United
States Code, is amended by adding at the end of the following
new subsection:
‘‘(g) An employee who is being involuntarily separated from
an agency due to a reduction in force or transfer of function under
subchapter I of chapter 35 may elect to use annual leave to the
employee’s credit to remain on the agency’s rolls after the date
the employee would otherwise have been separated if, and only
to the extent that, such additional time in a pay status will enable
the employee to qualify for an immediate annuity under section
8336, 8412, 8414, or to qualify to carry health benefits coverage
into retirement under section 8905(b).’’.
SEC. 635. Section 207(e)(6)(B) of title 18, United States Code,
is amended by striking ‘‘level V of the Executive Schedule’’ and
inserting ‘‘level 5 of the Senior Executive Service’’.
SEC. 636. REIMBURSEMENTS RELATING TO PROFESSIONAL LIABILITY INSURANCE.—(a) AUTHORITY.—Notwithstanding any other provision of law, amounts appropriated by this Act (or any other Act
for fiscal year 1997 or any fiscal year thereafter) for salaries and
expenses may be used to reimburse any qualified employee for
not to exceed one-half the costs incurred by such employee for

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–364

professional liability insurance. A payment under this section shall
be contingent upon the submission of such information or documentation as the employing agency may require.
(b) QUALIFIED EMPLOYEE.—For purposes of this section, the
term ‘‘qualified employee’’ means an agency employee whose position is that of—
(1) a law enforcement officer; or
(2) a supervisor or management official.
(c) DEFINITIONS.—For purposes of this section—
(1) the term ‘‘agency’’ means an Executive agency, as
defined by section 105 of title 5, United States Code, and
any agency of the Legislative Branch of Government including
any office or committee of the Senate or the House of Representatives;
(2) the term ‘‘law enforcement officer’’ means an employee,
the duties of whose position are primarily the investigation,
apprehension, prosecution, or detention of individuals suspected
or convicted of offenses against the criminal laws of the United
States, including any law enforcement officer under section
8331(20) or 8401(17) of such title 5, or under section 4823
of title 22, United States Code;
(3) the terms ‘‘supervisor’’ and ‘‘management official’’ have
the respective meanings given them by section 7103(a) of such
title 5, and
(4) the term ‘‘professional liability insurance’’ means insurance which provides coverage for—
(A) legal liability for damages due to injuries to other
persons, damage to their property, or other damage or
loss to such other persons (including the expenses of litigation and settlement) resulting from or arising out of any
tortious act, error, or omission of the covered individual
(whether common law, statutory, or constitutional) while
in the performance of such individual’s official duties as
a qualified employee; and
(B) the cost of legal representation for the covered
individual in connection with any administrative or judicial
proceeding (including any investigation or disciplinary
proceeding) relating to any act, error, or omission of the
covered individual while in the performance of such individual’s official duties as a qualified employee, and other
legal costs and fees relating to any such administrative
or judicial proceeding.
(d) APPLICABILITY.—The amendments made by this section shall
take effect on the date of the enactment of this Act and shall
apply thereafter.
SEC. 637. For purposes of each provision of law amended by
section 704(a)(2) of the Ethics Reform Act of 1989 (5 U.S.C. 5318
note), no adjustment under section 5303 of title 5, United States
Code, shall be considered to have taken effect in fiscal year 1997
in the rates of basic pay for the statutory pay systems.
SEC. 638. For FY 1997, the Secretary of the Treasury is authorized to use funds made available to the FSLIC Resolution Fund
under P.L. 103–327, not to exceed $26.1 million, to reimburse
the Department of Justice for the reasonable expenses of litigation
that are incurred in the defense of claims against the U.S. arising
from FIRREA and its implementation.

5 USC 5303 note.

110 STAT. 3009–365

40 USC 1411
note.

5 USC 5509 note.

5 USC 5509 note.

26 USC 7801
note.

PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 639. Section 608 of Public Law 104–52 is amended in
the first sentence by inserting before the period, ‘‘, including Federal
records disposed of pursuant to a records schedule’’.
SEC. 640. In reviewing and analyzing the contracting out,
outsourcing or privatization of business and administrative functions, and in implementing 40 U.S.C. sections 1413 and 1423,
and other provisions, in title LI of the National Defense Authorization Act for fiscal year 1996 (the Information Technology Management Reform Act)—
(1) the Director of the Office of Management and Budget
and the heads of the executive agencies may have studies,
analyses, reviews and other management assistance performed
by the private sector;
(2) the reviews, analyses, and studies called for by 40
U.S.C. section 1413(b)(2) (B) and (C) shall be completed and
reported to the Agency Head within 180 days, or less measured
from when a study analysis or review is initiated unless the
Agency Head determines additional time is needed;
(3) in accordance with principles and rules governing
organizational conflicts of interest, persons involved in a
particular study may not compete for any work that is to
be or is outsourced as a result of that study; and
(4) this section will apply with respect to studies occurring
on or after the date of enactment of this subsection and completed before September 1, 1999 and the Comptroller General
of the United States shall review and provide an assessment
of this program by January 1, 1999.
SEC. 641. (a) SECTION 1—AUTHORIZATION OF APPROPRIATIONS.—
Section 8(a)(1) of the Whistleblower Protection Act of 1989 (5 U.S.C.
5509 note, Public Law 101–12, April 10, 1989, 103 Stat. 34, as
amended Public Law 103–424, Section 1, October 29, 1994, 108
Stat. 4361), is amended by striking the words: ‘‘1993, 1994, 1995,
1996, and 1997,’’ and inserting in lieu thereof ‘‘1998, 1999, 2000,
2001, and 2002’’.
(b) SECTION 2—EFFECTIVE DATE.—This Act shall take effect
on October 1, 1998.
SEC. 642. (a) SECTION 1.—AUTHORIZATION OF APPROPRIATIONS.—Section 8(a)(1) of the Whistleblower Protection Act of 1989
(5 U.S.C. 5509 note; Public Law 103–424; 103 Stat. 34) is amended
by striking out: ‘‘1993, 1994, 1995, 1996, and 1997,’’ and inserting
in lieu thereof ‘‘1998, 1999, 2000, 2001, and 2002’’.
(b) SECTION 2—EFFECTIVE DATE.—This Act shall take effect
on October 1, 1998.
SEC. 643. MODIFICATIONS OF NATIONAL COMMISSION ON
RESTRUCTURING THE INTERNAL REVENUE SERVICE.—(a) QUORUM.—
Paragraph (4) of section 637(b) of the Treasury, Postal Service,
and General Government Appropriations Act, 1996 (Public Law
104–52, 109 Stat. 510) is amended by striking ‘‘Seven’’ and inserting
‘‘Nine’’.
(b) CO-CHAIRS.—
(1) IN GENERAL.—Paragraph (3) of section 637(b) of such
Act is amended—
(A) by striking ‘‘a Chairman’’ and inserting ‘‘CoChairs’’, and
(B) by striking ‘‘Chairman’’ in the heading and inserting ‘‘Co-Chairs’’.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–366

(2) CONFORMING AMENDMENTS.—(A) Paragraph (5)(B) of
section 637(b) of such Act is amended by striking ‘‘a Chairman’’
and inserting ‘‘Co-Chairs’’.
(B) Subsections (b)(4), (d)(1)(B), (d)(3), and (e)(1) of section
637 of such Act are each amended by striking ‘‘Chairman’’
each place it appears and inserting ‘‘Co-Chairs’’.
(c) GIFTS.—Section 637(d) of such Act is amended by adding
at the end the following new paragraph:
‘‘(6) GIFTS.—The Commission may accept, use, and dispose
of gifts or donations of services or property in carrying out
its duties under this section.’’
(d) TRAVEL EXPENSES.—Section 637(f)(2) of such Act is amended
by striking ‘‘shall’’ and inserting ‘‘may’’.
(e) TIME FOR FILING REPORT.—
(1) IN GENERAL.—Paragraph (1) of section 637(g) of such Act
is amended by striking ‘‘one year’’ and inserting ‘‘15 months’’.
(2) CONFORMING AMENDMENT.—Subparagraph (A) of section
637(c)(1) of such Act is amended by striking ‘‘one year’’ and inserting
‘‘15 months’’.
(f) EFFECTIVE DATE.—The amendments made by this section
shall take effect as if included in the provisions of the Treasury,
Postal Service, and General Government Appropriations Act, 1996.
SEC. 644. (a) IN GENERAL.—Section 202(a) of title 39, United
States Code, is amended by striking ‘‘$10,000 a year’’ and inserting
‘‘$30,000 a year’’.
(b) EFFECTIVE DATE.—Subsection (a) shall take effect at the
beginning of the next applicable pay period beginning after the
date of the enactment of this Act.
SEC. 645. (a) IN GENERAL.—No later than September 30, 1997,
the Director of the Office of Management and Budget shall submit
to the Congress a report that provides—
(1) estimates of the total annual costs and benefits of
Federal regulatory programs, including quantitative and nonquantitative measures of regulatory costs and benefits;
(2) estimates of the costs and benefits (including quantitative and nonquantitative measures) of each rule that is
likely to have a gross annual effect on the economy of
$100,000,000 or more in increased costs;
(3) an assessment of the direct and indirect impacts of
Federal rules on the private sector, State and local government,
and the Federal Government; and
(4) recommendations from the Director and a description
of significant public comments to reform or eliminate any Federal regulatory program or program element that is inefficient,
ineffective, or is not a sound use of the Nation’s resources.
(b) NOTICE.—The Director shall provide public notice and an
opportunity to comment on the report under subsection (a) before
the report is issued in final form.
SEC. 646. Subsection (b) of section 404 of Public Law 103–
356 is amended by deleting ‘‘September 30, 1997’’ and inserting
‘‘December 31, 1999’’.
SEC. 647. (a) Notwithstanding any other provision of law, the
Secretary shall, on behalf of the United States, transfer to the
University of Miami, without charge, title to the real property
and improvements that as of the date of the enactment of this
Act constitute the Federal facility known as the Perrine Primate

26 USC 7801
note.

39 USC 202 note.

31 USC 501 note.

110 STAT. 3009–367

PUBLIC LAW 104–208—SEPT. 30, 1996

Center, subject to the condition that, during the 10-year period
beginning on the date of the transfer—
(1) the University will provide for the continued use of
the real property and improvements as an animal research
facility, including primates, and such use will be the exclusive
use of the property (with such incidental exceptions as the
Secretary may approve); or
(2) the real property and improvements will be used for
research-related purposes other than the purpose specified in
paragraph (1) (or for both of such purposes), if the Secretary
and the University enter into an agreement accordingly.
(b) The conveyance under subsection (a) shall not become effective unless the conveyance specifies that, if the University of Miami
engages in a material breach of the conditions specified in such
subsection, title to the real property and improvements involved
reverts to the United States at the election of the Secretary.
(c) The real property referred to in subsections (a) and (b)
is located in the county of Dade in the State of Florida, and
is a parcel consisting of the northernmost 30 acre-parcel of the
area. The exact acreage and legal description used for purposes
of the transfer under subsection (a) shall be in accordance with
a survey that is satisfactory to the Secretary.
(d) For the purposes of this section—
(1) the term ‘‘Secretary’’ means the Secretary of Health
and Human Services; and
(2) the term ‘‘University of Miami’’ means the University
of Miami located in the State of Florida.
SEC. 648. (a) INCREASED PENALTIES FOR COUNTERFEITING VIOLATIONS.—Sections 474 and 474A of title 18, United States Code,
are amended by striking ‘‘class C felony’’ each place that term
appears and inserting ‘‘class B felony’’.
(b) CRIMINAL PENALTY FOR PRODUCTION, SALE, TRANSPORTATION, POSSESSION OF FICTITIOUS FINANCIAL INSTRUMENTS
PURPORTING TO BE THOSE OF THE STATES, OF POLITICAL SUBDIVISIONS, AND OF PRIVATE ORGANIZATIONS.—
(1) IN GENERAL.—Chapter 25 of title 18, United States
Code, is amended by inserting after section 513, the following
new section:
‘‘§ 514. Fictitious obligations
‘‘(a) Whoever, with the intent to defraud—
‘‘(1) draws, prints, processes, produces, publishes, or otherwise makes, or attempts or causes the same, within the United
States;
‘‘(2) passes, utters, presents, offers, brokers, issues, sells,
or attempts or causes the same, or with like intent possesses,
within the United States; or
‘‘(3) utilizes interstate or foreign commerce, including the
use of the mails or wire, radio, or other electronic communication, to transmit, transport, ship, move, transfer, or attempts
or causes the same, to, from, or through the United States,
any false or fictitious instrument, document, or other item appearing, representing, purporting, or contriving through scheme or artifice, to be an actual security or other financial instrument issued
under the authority of the United States, a foreign government,
a State or other political subdivision of the United States, or an
organization, shall be guilty of a class B felony.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–368

‘‘(b) For purposes of this section, any term used in this section
that is defined in section 513(c) has the same meaning given such
term in section 513(c).
‘‘(c) The United States Secret Service, in addition to any other
agency having such authority, shall have authority to investigate
offenses under this section.’’.
(2) TECHNICAL AMENDMENT.—The analysis for chapter 25
of title 18, United States Code, is amended by inserting after
the item relating to section 513 the following:
‘‘514. Fictitious obligations.’’.

(c) PERIOD OF EFFECT.—This section and the amendments made
by this section shall become effective on the date of enactment
of this Act and shall remain in effect during each fiscal year
following that date of enactment.
SEC. 649. None of the funds appropriated by this Act may
be used by an agency to provide a Federal employee’s home address
to any labor organization except when it is made known to the
Federal official having authority to obligate or expend such funds
that the employee has authorized such disclosure or that such
disclosure has been ordered by a court of competent jurisdiction.
SEC. 650. (a) No later than 45 days after the date of the
enactment of this Act, the Inspector General of each Federal department or agency that uses administratively uncontrollable overtime
in the pay of any employee shall—
(1) conduct an audit on the use of administratively
uncontrollable overtime by employees of such department or
agency, which shall include—
(A) an examination of the policies, extent, costs, and
other relevant aspects of the use of administratively
uncontrollable overtime at the department or agency; and
(B) a determination of whether the eligibility criteria
of the department or agency and payment of administratively uncontrollable overtime comply with Federal statutory and regulatory requirements; and
(2) submit a report of the findings and conclusions of such
audit to—
(A) the Office of Personnel Management;
(B) the Governmental Affairs Committee of the Senate;
and
(C) the Government Reform and Oversight Committee
of the House of Representatives.
(b) No later than 30 days after the submission of the report
under subsection (a), the Office of Personnel Management shall
issue revised guidelines to all Federal departments and agencies
that—
(1) limit the use of administratively uncontrollable overtime
to employees meeting the statutory intent of section 5545(c)(2)
of title 5, United States Code; and
(2) expressly prohibit the use of administratively uncontrollable overtime for—
(A) customary or routine work duties; and
(B) work duties that are primarily administrative in
nature, or occur in noncompelling circumstances.
SEC. 651. Notwithstanding section 8116 of title 5, United States
Code, and in addition to any payment made under 5 U.S.C. 8101
et seq., beginning in fiscal year 1997 and thereafter, the head

18 USC 474 note.

5 USC 8133 note.

110 STAT. 3009–369

18 USC 846 note.

18 USC 846 note.

PUBLIC LAW 104–208—SEPT. 30, 1996

of any department or agency is authorized to pay from appropriations made available to the department or agency a death gratuity
to the personal representative (as that term is defined by applicable
law) of a civilian employee of that department or agency whose
death resulted from an injury sustained in the line of duty on
or after August 2, 1990: Provided, That payments made pursuant
to this section, in combination with the payments made pursuant
to sections 8133(f) and 8134(a) of such title 5 and section 312
of Public Law 103–332 (108 Stat. 2537), may not exceed a total
of $10,000 per employee.
SEC. 653. (a) AUTHORIZATION.—The Secretary of the Treasury
is authorized to establish scientific certification standards for explosives detection canines, and shall provide, on a reimbursable basis,
for the certification of explosives detection canines employed by
Federal agencies, or other agencies providing explosives detection
services at airports in the United States.
(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated such sums as may be necessary to carry out
the purposes of this section.
SEC. 654. NATIONAL REPOSITORY FOR INFORMATION ON EXPLOSIVES INCIDENTS AND ARSON.
(a) Section 846 of title 18, United States Code, is amended
by—
(1) designating the existing section as subsection (a);
and
(2) by adding the following new subsection (b) to read
as follows:
‘‘(b) The Secretary is authorized to establish a national
repository of information on incidents involving arson and the
suspected criminal misuse of explosives. All Federal agencies
having information concerning such incidents shall report the
information to the Secretary pursuant to such regulations as
deemed necessary to carry out the provisions of this subsection.
The repository shall also contain information on incidents voluntarily reported to the Secretary by State and local authorities.’’.
(b) There is authorized to be appropriated such sums as
may be necessary to carry out the provisions of this subsection.
SEC. 655. Section 5(c)(1) of Public Law 102–259 (20 U.S.C.
5603(c)(1)) is amended—
(1) in subparagraph (A)(iii), by striking ‘‘and’’ after the
semicolon;
(2) in subparagraph (B), by striking the period and inserting ‘‘; and’’; and
(3) by adding after subparagraph (B) the following:
‘‘(C) a Trustee may serve after the expiration of the Trustee’s term until a successor has been chosen.’’.
SEC. 656. Notwithstanding any other provision of law, the
Secretary of the Interior, through the Bureau of Indian Affairs,
may directly transfer to Indian tribes in North and South Dakota
portable housing units at the Grand Forks Air Force base in North
Dakota which have been declared excess by the Department of
Defense and requested for transfer by the Department of the
Interior.
SEC. 657. Section 922(q) of title 18, United States Code, is
amended to read as follows:
‘‘(q)(1) The Congress finds and declares that—

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–370

‘‘(A) crime, particularly crime involving drugs and guns,
is a pervasive, nationwide problem;
‘‘(B) crime at the local level is exacerbated by the interstate
movement of drugs, guns, and criminal gangs;
‘‘(C) firearms and ammunition move easily in interstate
commerce and have been found in increasing numbers in and
around schools, as documented in numerous hearings in both
the Committee on the Judiciary the House of Representatives
and the Committee on the Judiciary of the Senate;
‘‘(D) in fact, even before the sale of a firearm, the gun,
its component parts, ammunition, and the raw materials from
which they are made have considerably moved in interstate
commerce;
‘‘(E) while criminals freely move from State to State, ordinary citizens and foreign visitors may fear to travel to or
through certain parts of the country due to concern about
violent crime and gun violence, and parents may decline to
send their children to school for the same reason;
‘‘(F) the occurrence of violent crime in school zones has
resulted in a decline in the quality of education in our country;
‘‘(G) this decline in the quality of education has an adverse
impact on interstate commerce and the foreign commerce of
the United States;
‘‘(H) States, localities, and school systems find it almost
impossible to handle gun-related crime by themselves—even
States, localities, and school systems that have made strong
efforts to prevent, detect, and punish gun-related crime find
their efforts unavailing due in part to the failure or inability
of other States or localities to take strong measures; and
‘‘(I) the Congress has the power, under the interstate commerce clause and other provisions of the Constitution, to enact
measures to ensure the integrity and safety of the Nation’s
schools by enactment of this subsection.
‘‘(2)(A) It shall be unlawful for any individual knowingly to
possess a firearm that has moved in or that otherwise affects
interstate or foreign commerce at a place that the individual knows,
or has reasonable cause to believe, is a school zone.
‘‘(B) Subparagraph (A) does not apply to the possession of
a firearm—
‘‘(i) on private property not part of school grounds;
‘‘(ii) if the individual possessing the firearm is licensed
to do so by the State in which the school zone is located
or a political subdivision of the State, and the law of the
State or political subdivision requires that, before an individual
obtains such a license, the law enforcement authorities of the
State or political subdivision verify that the individual is qualified under law to receive the license;
‘‘(iii) that is—
‘‘(I) not loaded; and
‘‘(II) in a locked container, or a locked firearms rack
that is on a motor vehicle;
‘‘(iv) by an individual for use in a program approved by
a school in the school zone;
‘‘(v) by an individual in accordance with a contract entered
into between a school in the school zone and the individual
or an employer of the individual;

110 STAT. 3009–371

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(vi) by a law enforcement officer acting in his or her
official capacity; or
‘‘(vii) that is unloaded and is possessed by an individual
while traversing school premises for the purpose of gaining
access to public or private lands open to hunting, if the entry
on school premises is authorized by school authorities.
‘‘(3)(A) Except as provided in subparagraph (B), it shall be
unlawful for any person, knowingly or with reckless disregard for
the safety of another, to discharge or attempt to discharge a firearm
that has moved in or that otherwise affects interstate or foreign
commerce at a place that the person knows is a school zone.
‘‘(B) Subparagraph (A) does not apply to the discharge of a
firearm—
‘‘(i) on private property not part of school grounds;
‘‘(ii) as part of a program approved by a school in the
school zone, by an individual who is participating in the program;
‘‘(iii) by an individual in accordance with a contract entered
into between a school in a school zone and the individual
or an employer of the individual; or
‘‘(iv) by a law enforcement officer acting in his or her
official capacity.
‘‘(4) Nothing in this subsection shall be construed as preempting
or preventing a State or local government from enacting a statute
establishing gun free school zones as provided in this subsection.’’.
SEC. 658. GUN BAN FOR INDIVIDUALS CONVICTED OF A MISDEMEANOR
CRIME OF DOMESTIC VIOLENCE.

(a) DEFINITION.—Section 921(a) of title 18, United States Code,
is amended by adding at the end the following:
‘‘(33)(A) Except as provided in subparagraph (C), the term
‘misdemeanor crime of domestic violence’ means an offense
that—
‘‘(i) is a misdemeanor under Federal or State law;
and
‘‘(ii) has, as an element, the use or attempted use
of physical force, or the threatened use of a deadly weapon,
committed by a current or former spouse, parent, or guardian of the victim, by a person with whom the victim shares
a child in common, by a person who is cohabiting with
or has cohabited with the victim as a spouse, parent, or
guardian, or by a person similarly situated to a spouse,
parent, or guardian of the victim.
‘‘(B)(i) A person shall not be considered to have been convicted of such an offense for purposes of this chapter, unless—
‘‘(I) the person was represented by counsel in the case,
or knowingly and intelligently waived the right to counsel
in the case; and
(II) in the case of a prosecution for an offense described
in this paragraph for which a person was entitled to a
jury trial in the jurisdiction in which the case was tried,
either
(aa) the case was tried by a jury, or
(bb) the person knowingly and intelligently waived
the right to have the case tried by a jury, by guilty
plea or otherwise.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–372

‘‘(ii) A person shall not be considered to have been convicted
of such an offense for purposes of this chapter if the conviction
has been expunged or set aside, or is an offense for which
the person has been pardoned or has had civil rights restored
(if the law of the applicable jurisdiction provides for the loss
of civil rights under such an offense) unless the pardon,
expungement, or restoration of civil rights expressly provides
that the person may not ship, transport, possess, or receive
firearms.’’.
(b) PROHIBITIONS.—
(1) Section 922(d) of such title is amended—
(A) by striking ‘‘or’’ at the end of paragraph (7);
(B) by striking the period at the end of paragraph
(8) and inserting ‘‘; or’’; and
(C) by inserting after paragraph (8) the following:
‘‘(9) has been convicted in any court of a misdemeanor
crime of domestic violence.’’.
(2) Section 922(g) of such title is amended—
(A) by striking ‘‘or’’ at the end of paragrph (7);
(B) by striking the comma at the end of paragraph
(8) and inserting ‘‘; or’’; and
(C) by inserting after paragraph (8) the following:
‘‘(9) who has been convicted in any court of a misdemeanor
crime of domestic violence,’’.
(3) Section 922(s)(3)(B)(i) of such title is amended by inserting ‘‘, and has not been convicted in any court of a misdemeanor
crime of domestic violence’’ before this semicolon.
(c) GOVERNMENT ENTITIES NOT EXCEPTED.—Section 925(a)(1)
of such title is amended by inserting ‘‘sections 922(d)(9) and
922(g)(9) and’’ after ‘‘except for’’.
SEC. 659. THRIFT SAVINGS PLAN.

TITLE I—ADDITIONAL INVESTMENT FUNDS
PLAN

FOR THE

THRIFT SAVINGS

SEC. 101. SHORT TITLE

This title may be cited as the ‘‘Thrift Savings Investment Funds
Act of 1996’’.
SEC. 102. ADDITIONAL INVESTMENT FUNDS FOR THE THRIFT SAVINGS
PLAN

Section 8438 of title 5, United States Code, is amended—
(1) in subsection (a)—
(A) by redesignating paragraphs (5) through (8) as
paragraphs (6) through (9), respectively;
(B) by inserting after paragraph (4) the following new
paragraph:
‘‘(5) the term ‘International Stock Index Investment Fund’
means the International Stock Index Investment Fund established under subsection (b)(1)(E);’’;
(C) in paragraph (8) (as redesignated by subparagraph
(A) of this paragraph) by striking out ‘‘and’’ at the end
thereof;
(D) in paragraph (9) (as redesignated by subparagraph
(A) of this paragraph)—

Thrift Savings
Investment
Funds Act of
1996.
5 USC 8401 note.

110 STAT. 3009–373

PUBLIC LAW 104–208—SEPT. 30, 1996

(i) by striking out ‘‘paragraph (7)(D)’’ in each place
it appears and inserting in each such place ‘‘paragraph
(8)(D)’’; and
(ii) by striking out the period and inserting in
lieu thereof a semicolon and ‘‘and’’; and
(E) by adding at the end thereof the following new
paragraph:
‘‘(10) the term ‘Small Capitalization Stock Index Investment Fund’ means the Small Capitalization Stock Index Investment Fund established under subsection (b)(1)(D).’’; and
(2) in subsection (b)—
(A) in paragraph (1)—
(i) in subparagraph (B) by striking out ‘‘and’’ at
the end thereof;
(ii) in subparagraph (C) by striking out the period
and inserting in lieu thereof a semicolon; and
(iii) by adding at the end thereof the following
new subparagraphs:
‘‘(D) a Small Capitalization Stock Index Investment
Fund as provided in paragraph (3); and
‘‘(E) an International Stock Index Investment Fund
as provided in paragraph (4).’’; and
(B) by adding at the end thereof the following new
paragraphs:
‘‘(3)(A) The Board shall select an index which is a commonly
recognized index comprised of common stock the aggregate
market value of which represents the United States equity
markets excluding the common stocks included in the Common
Stock Index Investment Fund.
‘‘(B) The Small Capitalization Stock Index Investment Fund
shall be invested in a portfolio designed to replicate the
performance of the index in subparagraph (A). The portfolio
shall be designed such that, to the extent practicable, the
percentage of the Small Capitalization Stock Index Investment
Fund that is invested in each stock is the same as the percentage determined by dividing the aggregate market value of
all shares of that stock by the aggregate market value of
all shares of all stocks included in such index.
‘‘(4)(A) The Board shall select an index which is a commonly
recognized index comprised of stock the aggregate market value
of which is a reasonably complete representation of the international equity markets excluding the United States equity
markets.
‘‘(B) The International Stock Index Investment Fund shall
be invested in a portfolio designed to replicate the performance
of the index in subparagraph (A). The portfolio shall be designed
such that, to the extent practicable, the percentage of the
International Stock Index Investment Fund that is invested
in each stock is the same as the percentage determined by
dividing the aggregate market value of all shares of that stock
by the aggregate market value of all shares of all stocks
included in such index.’’.
SEC. 103. ACKNOWLEDGEMENT OF INVESTMENT RISK

Section 8439(d) of title 5, United States Code, is amended
by striking out ‘‘Each employee, Member, former employee, or
former Member who elects to invest in the Common Stock Index

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–374

Investment Fund or the Fixed Income Investment Fund described
in paragraphs (1) and (3),’’ and inserting in lieu thereof ‘‘Each
employee, Member, former employee, or former Member who elects
to invest in the Common Stock Index Investment Fund, the Fixed
Income Investment Fund, the International Stock Index Investment
Fund, or the Small Capitalization Stock Index Investment Fund,
defined in paragraphs (1), (3), (5), and (10),’’.
SEC. 104. EFFECTIVE DATE

5 USC 8438 note.

This title shall take effect on the date of enactment of this
Act, and the Funds established under this title shall be offered
for investment at the earliest practicable election period (described
in section 8432(b) of title 5, United States Code) as determined
by the Executive Director in regulations.
TITLE II—THRIFT SAVINGS ACCOUNTS LIQUIDITY
SEC. 201. SHORT TITLE

This title may be cited as the ‘‘Thrift Savings Plan Act of
1996’’.
SEC. 202. NOTICE TO SPOUSES FOR IN-SERVICE WITHDRAWALS; DE
MINIMUS ACCOUNTS; CIVIL SERVICE RETIREMENT SYSTEM PARTICIPANTS

Section 8351(b) of title 5, United States Code, is amended—
(1) in paragraph (5)—
(A) in subparagraph (B)—
(i) by striking out ‘‘An election, change of election,
or modification (relating to the commencement date
of a deferred annuity)’’ and inserting in lieu thereof
‘‘An election or change of election’’;
(ii) by inserting ‘‘or withdrawal’’ after ‘‘and a loan’’;
(iii) by inserting ‘‘and (h)’’ after ‘‘8433(g)’’;
(iv) by striking out ‘‘the election, change of election,
or modification’’ and inserting in lieu thereof ‘‘the election or change of election’’; and
(v) by inserting ‘‘or withdrawal’’ after ‘‘for such
loan’’; and
(B) in subparagraph (D)—
(i) by inserting ‘‘or withdrawals’’ after ‘‘of loans’’;
and
(ii) by inserting ‘‘or (h)’’ after ‘‘8433(g)’’; and
(2) in paragraph (6)—
(A) by striking out ‘‘$3,500 or less’’ and inserting in
lieu thereof ‘‘less than an amount that the Executive Director prescribes by regulation’’; and
(B) by striking out ‘‘unless the employee or Member
elects, at such time and otherwise in such manner as
the Executive Director prescribes, one of the options available under subsection (b)’’.
SEC. 203. IN-SERVICE WITHDRAWALS; WITHDRAWAL ELECTIONS, FEDERAL EMPLOYEES RETIREMENT SYSTEM PARTICIPANTS

(a) IN GENERAL.—Section 8433 of title 5, United States Code,
is amended—
(1) by striking out subsections (b) and (c) and inserting
in lieu thereof the following:

Thrift Savings
Plan Act of 1996.
5 USC 8401 note.

110 STAT. 3009–375

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(b) Subject to section 8435 of this title, any employee or Member who separates from Government employment is entitled and
may elect to withdraw from the Thrift Savings Fund the balance
of the employee’s or Member’s account as—
‘‘(1) an annuity;
‘‘(2) a single payment;
‘‘(3) 2 or more substantially equal payments to be made
not less frequently than annually; or
‘‘(4) any combination of payments as provided under paragraphs (1) through (3) as the Executive Director may prescribe
by regulation.
‘‘(c)(1) In addition to the right provided under subsection (b)
to withdraw the balance of the account, an employee or Member
who separates from Government service and who has not made
a withdrawal under subsection (h)(1)(A) may make one withdrawal
of any amount as a single payment in accordance with subsection
(b)(2) from the employee’s or Member’s account.
‘‘(2) An employee or Member may request that the amount
withdrawn from the Thrift Savings Fund in accordance with subsection (b)(2) be transferred to an eligible retirement plan.
‘‘(3) The Executive Director shall make each transfer elected
under paragraph (2) directly to an eligible retirement plan or plans
(as defined in section 402(c)(8) of the Internal Revenue Code of
1986) identified by the employee, Member, former employee, or
former Member for whom the transfer is made.
‘‘(4) A transfer may not be made for an employee, Member,
former employee, or former Member under paragraph (2) until
the Executive Director receives from that individual the information
required by the Executive Director specifically to identify the eligible
retirement plan or plans to which the transfer is to be made.’’;
(2) in subsection (d)—
(A) in paragraph (1) by striking out ‘‘Subject to paragraph (3)(A)’’ and inserting in lieu thereof ‘‘Subject to paragraph (3)’’;
(B) by striking out paragraph (2) and redesignating
paragraph (3) as paragraph (2); and
(C) in paragraph (2) (as redesignated under subparagraph (B) of this paragraph)—
(i) in subparagraph (A) by striking out ‘‘(A) by
striking out ‘‘(A)’’; and
(ii) by striking out subparagraph (B);
(3) in subsection (f)(1)—
(A) by striking out ‘‘$3,500 or less’’ and inserting in
lieu thereof ‘‘less than an amount that the Executive Director prescribes by regulation; and
(B) by striking out ‘‘unless the employee or Member
elects, at such time and otherwise in such manner as
the Executive Director prescribes, one of the options available under subsection (b), or’’ and inserting a comma;
(4) in subsection (f)(2)—
(A) by striking out ‘‘February 1’’ and inserting in lieu
thereof ‘‘April 1’’;
(B) in subparagraph (A)—
(i) by striking out ‘‘65’’ and inserting in lieu thereof
‘‘701⁄2’’; and
(ii) by inserting ‘‘or’’ after the semicolon;
(C) by striking out subparagraph (B); and

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–376

(D) by redesignating subparagraph (C) as subparagraph (B);
(5) in subsection (g)—
(A) in paragraph (1) by striking out ‘‘after December
31, 1987, and’’, and by adding at the end of the paragraph
the following sentence: ‘‘Before a loan is issued, the Executive Director shall provide in writing the employee or Member with appropriate information concerning the cost of
the loan relative to other sources of financing, as well
as the lifetime cost of the loan, including the difference
in interest rates between the funds offered by the Thrift
Savings Fund, and any other effect of such loan on the
employee’s or Member’s final account balance.’’; and
(B) by striking out paragraph (2) and redesignating
paragraphs (3) through (5) as paragraphs (2) through (4),
respectively; and
(6) by adding after subsection (g) the following new subsection:
‘‘(h)(1) An employee or Member may apply, before separation,
to the Board for permission to withdraw an amount from the
employee’s or Member’s account based upon—
‘‘(A) the employee or Member having attained age 591⁄2;
or
‘‘(B) financial hardship.
‘‘(2) A withdrawal under paragraph (1)(A) shall be available
to each eligible participant one time only.
‘‘(3) A withdrawal under paragraph (1)(B) shall be available
only for an amount not exceeding the value of that portion of
such account which is attributable to contributions made by the
employee or Member under section 8432(a) of this title.
‘‘(4) Withdrawals under paragraph (1) shall be subject to such
other conditions as the Executive Director may prescribe by regulation.
‘‘(5) A withdrawal may not be made under this subsection
unless the requirements of section 8435(e) of this title are satisfied.’’.
(b) INVALIDITY OF CERTAIN PRIOR ELECTIONS.—Any election
made under section 8433(b)(2) of title 5, United States Code (as
in effect before the effective date of this title), with respect to
an annuity which has not commenced before the implementation
date of this title as provided by regulation by the Executive Director
in accordance with section 207 of this title, shall be invalid.
SEC. 204. SURVIVOR ANNUITIES FOR FORMER SPOUSES; NOTICE TO
FEDERAL EMPLOYEES RETIREMENT SYSTEM SPOUSES FOR IN-SERVICE WITHDRAWALS

Section 8435 of title 5, United States Code, is amended—
(1) in subsection (a)(1)(A)—
(A) by striking out ‘‘may make an election under subsection (b)(3) or (b)(4) or section 8433 of this title or change
an election previously made under subsection (b)(1) or (b)(2)
of such section’’ and inserting in lien thereof ‘‘may withdraw
all or part of a Thrift Savings Fund account under subsection (b) (2), (3), or (4) of section 8433 of this title or
change a withdrawal election’’; and
(B) by adding at the end thereof ‘‘A married employee
or Member (or former employee or Member) may make
a withdrawal from a Thrift Savings Fund account under

5 USC 8433 note.

110 STAT. 3009–377

PUBLIC LAW 104–208—SEPT. 30, 1996

subsection (c)(1) of section 8433 of this title only if the
employee or Member (or former employee or Member) satisfies the requirements of subparagraph (B).’’;
(2) in subsection (c)—
(A) in paragraph (1)—
(i) by striking out ‘‘An election, change of election,
or modification of the commencement date of a deferred
annuity’’ and inserting in lieu thereof ‘‘An election
or change of election’’; and
(ii) by striking out ‘‘modification, or transfer’’ and inserting
in lien thereof ‘‘or transfer’’; and
(B) in paragraph (2) in the matter following subparagraph (B)(ii) by striking out ‘‘modification,’’;
(3) in subsection (e)—
(A) in paragraph (1)—
(i) in subparagraph (A)—
(I) by inserting ‘‘or withdrawal’’ after ‘‘A loan’’;
(II) by inserting ‘‘and (h)’’ after ‘‘8433(g)’’; and
(III) by inserting ‘‘or withdrawal’’ after ‘‘such
loan’’;
(ii) in subparagraph (B) by inserting ‘‘or withdrawal’’ after ‘‘loan’’; and
(iii) in subparagraph (C)—
(I) by inserting ‘‘or withdrawal’’ after ‘‘to a
loan’’; and
(II) by inserting ‘‘or withdrawal’’ after ‘‘for such
loan’’; and
(B) in paragraph (2)—
(i) by inserting ‘‘or withdrawal’’ after ‘‘loan’’; and
(ii) by inserting ‘‘and (h)’’ after ‘‘8344(g)’’; and
(4) in subsection (g)—
(A) by inserting ‘‘or withdrawals’’ after ‘‘loans’’; and
(B) by inserting ‘‘and (h)’’ after ‘‘8344(g)’’.
SEC. 205. DE MINIMUS ACCOUNTS RELATING TO THE JUDICIARY

(a) JUSTICES AND JUDGES.—Section 8440a(b)(7) of title 5, United
States Code, is amended—
(1) by striking out ‘‘$3,500 or less’’ and inserting in lieu
thereof ‘‘less than an amount that the Executive Director prescribes by regulation’’; and
(2) by striking out ‘‘unless the justice or judge elects, at
such time and otherwise in such manner as the Executive
Director prescribes, one of the options available under section
8433(b)’’.
(b) BANKRUPTCY JUDGES AND MAGISTRATES.—Section 8440b(b)
of title 5, United States Code, is amended—
(1) in paragraph (7) in the first sentence by inserting
‘‘of the distribution’’ after ‘‘equal to the amount’’; and
(2) in paragraph (8)—
(A) by striking out ‘‘$3,500 or less’’ and inserting in
lieu thereof ‘‘less than an amount that the Executive Director prescribes by regulation’’; and
(B) by striking out ‘‘unless the bankruptcy judge or
magistrate elects, at such time and otherwise in such manner as the Executive Director prescribes, one of the options
available under subsection (b)’’.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–378

(c) FEDERAL CLAIMS JUDGES.—Section 8440c(b) of title 5, United
States Code, is amended—
(1) in paragraph (7) in the first sentence by inserting
‘‘of the distribution’’ after ‘‘equal to the amount’’; and
(2) in paragraph (8)—
(A) by striking out ‘‘$3,500 or less’’ and inserting in
lieu thereof ‘‘less than an amount that the Executive Director prescribes by regulation’’; and
(B) by striking out ‘‘unless the judge elects, at such
time and otherwise in such manner as the Executive Director prescribes, one of the options available under section
8433(b)’’.
SEC. 206. DEFINITION OF BASIC PAY

(a) IN GENERAL.—(1) Section 8401(4) of title 5, United States
Code, is amended by striking out ‘‘except as provided in subchapter
III of this chapter,’’.
(2) Section 8431 of title 5, United States Code, is repealed.
(b) TECHNICAL AND CONFORMING AMENDMENTS.—(1) The table
of sections for chapter 84 of title 5, United States Code, is amended
by striking out the item relating to section 8431.
(2) Section 5545a(h)(2)(A) of title 5, United States Code, is
amended by striking out ‘‘8431,’’.
(3) Section 615(f) of the Treasury, Postal Service, and General
Government Appropriations Act, 1996 (Public Law 104–52; 109
Stat. 500; 5 U.S.C. 5343 note) is amended by striking out ‘‘section
8431 of title 5, United States Code,’’.
SEC. 207. EFFECTIVE DATE

This title shall take effect on the date of the enactment of
this Act and withdrawals and elections as provided under the
amendments made by this title shall be made at the earliest practicable date as determined by the Executive Director in regulations.
SEC. 660. Notwithstanding Section 613, interagency financing
is authorized to carry out the purposes of the National Bioethics
Advisory Commission.
SEC. 661. (a) DESIGNATION.—The United States courthouse to
be constructed at 111 South 18th Plaza, Omaha, Nebraska, shall
be known and designated as the ‘‘Roman L. Hruska United States
Courthouse’’.
(b) REFERENCES.—Any reference in a law, map, regulation,
document, paper, or other record of the United States to the United
States courthouse referred to in section 1 shall be deemed to be
a reference to the ‘‘Roman L. Hruska United States Courthouse’’.
SEC. 662. (a) PROVISIONS RELATING TO TITLE 39, UNITED STATES
CODE.—
‘‘(1) APPOINTMENT AND REMOVAL OF INSPECTOR GENERAL.—
Section 202 of title 39, United States Code, is amended by
adding at the end the following:
‘‘(e)(1) The Governors shall appoint and shall have the power
to remove the Inspector General.
‘‘(2) The Inspector General shall be appointed—
‘‘(A) for a term of 7 years;
‘‘(B) without regard to political affiliation; and
‘‘(C) solely on the basis of integrity and demonstrated ability in accounting, auditing, financial analysis, law, management
analysis, public administration, or investigations.

5 USC 5545a
note.

110 STAT. 3009–379

39 USC 2009
note.

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(3) The Inspector General may at any time be removed upon
the written concurrence of at least 7 Governors, but only for cause.
Nothing in this subsection shall be considered to exempt the Governors from the requirements of section 8G(e) of the Inspector
General Act of 1978.’’.
(2) DEFINITION.—Section 102 of title 39, United States
Code, is amended—
(A) by striking ‘‘and’’ at the end of paragraph (2);
(B) by striking the period at the end of paragraph
(3) and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(4) ‘Inspector General’ means the Inspector General
appointed under section 202(e) of this title.’’.
(3) SEPARATE ITEM IN ANNUAL BUDGET.—For purposes of
the fifth sentence of section 2009 of title 39, United States
Code, the operations of the Office of Inspector General of the
United States Postal Service shall be considered a major type
of activity.
(b) AMENDMENTS TO THE INSPECTOR GENERAL ACT OF 1978.—
(1) GOVERNORS AS HEAD OF THE POSTAL SERVICE.—Section
8G(a)(4) of the Inspector General Act of 1978 (5 U.S.C. App.)
is amended by striking ‘‘except that’’ and all that follows
through the semicolon and inserting ‘‘except that—
‘‘(A) with respect to the National Science Foundation,
such term means the National Science Board; and
‘‘(B) with respect to the United States Postal Service,
such term means the Governors (within the meaning of
section 102(3) of title 39, United States Code);’’.
(2) SPECIAL RULES RELATING TO THE UNITED STATES POSTAL
SERVICE.—Subsection (f) of section 8G of such Act is amended
to read as follows:
‘‘(f)(1) For purposes of carrying out subsection (c) with respect
to the United States Postal Service, the appointment provisions
of section 202(e) of title 39, United States Code, shall be applied.
‘‘(2) In carrying out the duties and responsibilities specified
in this Act, the Inspector General of the United States Postal
Service (hereinafter in this subsection referred to as the ‘Inspector
General’) shall have oversight responsibility for all activities of
the Postal Inspection Service, including any internal investigation
performed by the Postal Inspection Service. The Chief Postal Inspector shall promptly report the significant activities being carried
out by the Postal Inspection Service to such Inspector General.
‘‘(3)(A)(i) Notwithstanding subsection (d), the Inspector General
shall be under the authority, direction, and control of the Governors
with respect to audits or investigations, or the issuance of subpoenas, which require access to sensitive information concerning—
‘‘(I) ongoing civil or criminal investigations or proceedings;
‘‘(II) undercover operations;
‘‘(III) the identity of confidential sources, including protected witnesses;
‘‘(IV) intelligence or counterintelligence matters; or
‘‘(V) other matters the disclosure of which would constitute
a serious threat to national security.
‘‘(ii) With respect to the information described under clause
(i), the Governors may prohibit the Inspector General from carrying
out or completing any audit or investigation, or from issuing any
subpoena, after such Inspector General has decided to initiate,

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–380

carry out, or complete such audit or investigation or to issue such
subpoena, if the Governors determine that such prohibition is necessary to prevent the disclosure of any information described under
clause (i) or to prevent the significant impairment to the national
interests of the United States.
‘‘(iii) If the Governors exercise any power under clause (i) or
(ii), the Governors shall notify the Inspector General in writing
stating the reasons for such exercise. Within 30 days after receipt
of any such notice, the Inspector General shall transmit a copy
of such notice to the Committee on Governmental Affairs of the
Senate and the Committee on Government Reform and Oversight
of the House of Representatives, and to other appropriate committees or subcommittees of the Congress.
‘‘(B) In carrying out the duties and responsibilities specified
in this Act, the Inspector General—
‘‘(i) may initiate, conduct and supervise such audits and
investigations in the United States Postal Service as the Inspector General considers appropriate; and
‘‘(ii) shall give particular regard to the activities of the
Postal Inspection Service with a view toward avoiding duplication and insuring effective coordination and cooperation.
‘‘(C) Any report required to be transmitted by the Governors
to the appropriate committees or subcommittees of the Congress
under section 5(d) shall also be transmitted, within the sevenday period specified under such section, to the Committee on
Governmental Affairs of the Senate and the Committee on Government Reform and Oversight of the House of Representatives.
‘‘(3) Nothing in this Act shall restrict, eliminate, or otherwise
adversely affect any of the rights, privileges, or benefits of either
employees of the United States Postal Service, or labor organizations representing employees of the United States Postal Service,
under chapter 12 of title 39, United States Code, the National
Labor Relations Act, any handbook or manual affecting employee
labor relations with the United States Postal Service, or any collective bargaining agreement.
‘‘(4) As used in this subsection, the term ‘Governors’ has the
meaning given such term by section 102(3) of title 39, United
States Code.’’.
(3) TECHNICAL CORRECTION.—The Inspector General Act
of 1978 is amended by redesignating the second section which
is designated as section 8G as section 8H.
(c) PROVISIONS RELATING TO COMPENSATION.—
(1) INSPECTOR GENERAL.—Section 5315 of title 5, United
States Code, is amended by adding at the end the following:
‘‘Inspector General, United States Postal Service.’’.
The amendment made by the preceding sentence shall apply notwithstanding section 410 or any other provision of title 39, United
States Code.
(2) OFFICERS AND EMPLOYEES OF THE OFFICE OF INSPECTOR
GENERAL OF THE UNITED STATES POSTAL SERVICE; POSTAL
INSPECTORS.—
(A) IN GENERAL.—Section 1003 of title 39, United
States Code, is amended—
(i) by redesignating subsection (b) as subsection
(d); and
(ii) by inserting after subsection (a) the following:

5 USC app.

5 USC 5315 note.

110 STAT. 3009–381

39 USC 2802
note.

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(b) Compensation and benefits for all officers and employees
serving in or under the Office of Inspector General of the United
States Postal Service shall be maintained on a standard of comparability to the compensation and benefits paid for comparable
levels of work in the respective Offices of Inspector General of
the various establishments named in section 11(2) of the Inspector
General Act of 1978.
‘‘(c) Compensation and benefits for all Postal Inspectors shall
be maintained on a standard of comparability to the compensation
and benefits paid for comparable levels of work in the executive
branch of the Government outside of the Postal Service. As used
in this subsection, the term ‘Postal Inspector’ included any agent
to whom any investigative powers are granted under section 3061
of title 18.’’.
(B) CONFORMING AMENDMENT.—The first sentence of
section 1003(a) of title 39, United States Code, is amended
by striking ‘‘chapters 2 and 12 of this title’’ and inserting
‘‘chapters 2 and 12 of this title, section 8G of the Inspector
General Act of 1978,’’.
(d) STRATEGIC PLANS.—
(1) OFFICE OF INSPECTOR GENERAL OF THE UNITED STATES
POSTAL SERVICE.—
(A) IN GENERAL.—Strategic plans shall be prepared
under this paragraph addressing staffing requirements,
general goals and objectives for major functions and operations of the Office of Inspector General of the United
States Postal Service, and how goals and objectives of
the Office are to be achieved, including a description of
operational processes, skills and technology, and the
human, capital, information, and other resources required
to meet those goals and objectives.
(B) SPECIFIC REQUIREMENTS.—Plans under this paragraph—
(i) shall be prepared by the Inspector General of
the United States Postal Service;
(ii) shall each cover a 5-year period (the beginning
and ending dates of which shall be specified in each
such plan); and
(iii) shall be included, as part of the annual budget
required under section 2009 of title 39, United States
Code, at least every 3 years.
(C) FIRST SUBMISSION.—The first plan under this paragraph shall be prepared in time to be included with the
annual budget under section 2009 of title 39, United States
Code, next due to be submitted after the end of the 6month period beginning on the date of the appointment
of the first Inspector General to be appointed pursuant
to the amendments made by this section.
(2) POSTAL INSPECTION SERVICE.—The Chief Postal Inspector shall, with respect to the Postal Inspection Service, prepare
a strategic plan similar in content to that required under paragraph (1)(A) with respect to the Office of Inspector General
of the United States Postal Service. Such plan shall be prepared
in time to be included with the annual budget under section
2009 of such title 39 next due to be submitted after the end
of the 30-day period beginning on the date of the enactment
of this Act.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–382

(e) FIRST APPOINTMENT; TRANSFERS; TRANSITION PROVISION.—
(1) FIRST APPOINTMENT.—The first Inspector General of
the United States Postal Service appointed pursuant to the
amendments made by this section shall be appointed before
the end of the 90-day period beginning on the date of the
enactment of this Act.
(2) TRANSFERS.—
(A) IN GENERAL.—All measures described in section
8G(b) of the Inspector General Act of 1978 necessary to
establish an Office of Inspector General within the United
States Postal Service pursuant to this section, including
all appropriate transfers, shall occur—
(i) no earlier than the date the appointment under paragraph
(1) is made; and
(ii) no later than 60 days after the date the appointment under
paragraph (1) is made.
(B) PROVISIONS RELATING TO PERSONNEL.—
(i) CONSULTATION.—Decisions concerning which personnel are
to be transferred pursuant to subparagraph (A) shall be made
by the Governors (within the meaning of section 102(3) of title
39, United States Code) in consultation with the Inspector General
appointed under paragraph (1).
(ii) TRANSFERRED PERSONNEL.—Personnel transferred pursuant
to subparagraph (A) shall, to the extent not inconsistent with other
provisions of this subsection, be transferred in accordance with
applicable laws and regulations relating to the transfer of functions
within the United States Postal Service, except that, notwithstanding any provision of section 1003(b) of title 39, United States Code,
as amended by this section, the classification and compensation
of such personnel shall not be reduced, by reason of having been
transferred, for 1 year after being so transferred.
(3) TRANSITION PROVISION.—The Chief Postal Inspector may
continue to serve as Inspector General of the United States
Postal Service until the date on which an Inspector General
is appointed under paragraph (1) or, if earlier, the end of
the period referred to in such paragraph. Compensation for
any service under this paragraph shall be determined as if
this section had not been enacted.
(f) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 410(b) of title 39, United States Code, is amended—
(A) by striking ‘‘and’’ at the end of paragraph (9);
and
(B) by amending paragraph (10) to read as follows:
‘‘(10) the Inspector General Act of 1978; and’’
(2)(A) Section 204 of such title 39 is amended—
(i) by amending the section heading to read as follows:
‘‘§ 204. General Counsel; Judicial Officer; Chief Postal Inspector’’;
(ii) in the first sentence by striking ‘‘and a Judicial Officer.’’
and inserting ‘‘a Judicial Officer, and a Chief Postal Inspector.’’;
(iii) in the second sentence by striking ‘‘and the Judicial Officer’’
and inserting ‘‘the Judicial Officer, and the Chief Postal Inspector’’;
and
(iv) by adding at the end the following: ‘‘The Chief Postal
Inspector shall report to, and be under the general supervision

39 USC 201 note.

110 STAT. 3009–383

PUBLIC LAW 104–208—SEPT. 30, 1996

of, the Postmaster General. The Postmaster General shall promptly
notify the Governors and both Houses of Congress in writing if
he or she removes the Chief Postal Inspector or transfers the
Chief Postal Inspector to another position or location within the
Postal Service, and shall include in any such notification the reasons
for the removal or transfer.’’.
(B) The table of sections for chapter 2 of such title 39
is amended by striking the item relating to section 204 and
inserting the following:
‘‘204. General Counsel; Judicial Officer; Chief Postal Inspector.’’.
5 USC 5597 note.

SEC. 663. VOLUNTARY SEPARATION INCENTIVES FOR EMPLOYEES
CERTAIN FEDERAL AGENCIES.—(a) DEFINITIONS.—For the purposes of this section—
(1) the term ‘‘agency’’ means any Executive agency (as
defined in section 105 of title 5, United States Code), other
than an Executive agency (except an agency receiving such
authority in the Department of Transportation Appropriations
Act, 1997) that is authorized by any other provision of this
Act or any other Act to provide voluntary separation incentive
payments during all, or any part of, fiscal year 1997; and
(2) the term ‘‘employee’’ means an employee (as defined
by section 2105 of title 5, United States Code) who is employed
by an agency, is serving under an appointment without time
limitation, and has been currently employed for a continuous
period of at least 3 years, but does not include—
(A) a reemployed annuitant under subchapter III of
chapter 83 or chapter 84 of title 5, United States Code,
or another retirement system for employees of the agency;
(B) an employee having a disability on the basis of
which such employee is or would be eligible for disability
retirement under subchapter III of chapter 83 or chapter
84 of title 5, United States Code, or another retirement
system for employees of the agency;
(C) an employee who is in receipt of a specific notice
of involuntary separation for misconduct or unacceptable
performance;
(D) an employee who, upon completing an additional
period of service as referred to in section 3(b)(2)(B)(ii) of
the Federal Workforce Restructuring Act of 1994 (5 U.S.C.
5597 note), would qualify for a voluntary separation incentive payment under section 3 of such Act;
(E) an employee who has previously received any voluntary separation incentive payment by the Federal
Government under this section or any other authority and
has not repaid such payment;
(F) an employee covered by statutory reemployment
rights who is on transfer to another organization; or
(G) any employee who, during the twenty four month
period preceding the date of separation, has received a
recruitment or relocation bonus under section 5753 of title
5, United States Code, or who, within the twelve month
period preceding the date of separation, received a retention
allowance under section 5754 of title 5, United States Code.
(b) AGENCY STRATEGIC PLAN.—
(1) IN GENERAL.—The head of each agency, prior to obligating any resources for voluntary separation incentive payments,

OF

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–384

shall submit to the House and Senate Committees on Appropriations and the Committee on Governmental Affairs of the
Senate and the Committee on Government Reform and Oversight of the House of Representatives a strategic plan outlining
the intended use of such incentive payments and a proposed
organizational chart for the agency once such incentive payments have been completed.
(2) CONTENTS.—The agency’s plan shall include—
(A) the positions and functions to be reduced or eliminated, identified by organizational unit, geographic location, occupational category and grade level;
(B) the number and amounts of voluntary separation
incentive payments to be offered; and
(C) a description of how the agency will operate without
the eliminated positions and functions.
(c) AUTHORITY TO PROVIDE VOLUNTARY SEPARATION INCENTIVE
PAYMENTS.—
(1) IN GENERAL.—A voluntary separation incentive payment
under this section may be paid by an agency to any employee
only to the extent necessary to eliminate the positions and
functions identified by the strategic plan.
(2) AMOUNT AND TREATMENT OF PAYMENTS.—A voluntary
separation incentive payment—
(A) shall be paid in a lump sum after the employee’s
separation;
(B) shall be paid from appropriations or funds available
for the payment of the basic pay of the employees;
(C) shall be equal to the lesser of—
(i) an amount equal to the amount the employee
would be entitled to receive under section 5595(c) of
title 5, United States Code; or
(ii) an amount determined by the agency head
not to exceed $25,000;
(D) may not be made except in the case of any qualifying employee who voluntarily separates (whether by retirement or resignation) before December 31, 1997;
(E) shall not be a basis for payment, and shall not
be included in the computation, of any other type of Government benefit; and
(F) shall not be taken into account in determining
the amount of any severance pay to which the employee
may be entitled under section 5595 of title 5, United States
Code, based on any other separation.
(d) ADDITIONAL AGENCY CONTRIBUTIONS TO THE RETIREMENT
FUND.—
(1) IN GENERAL.—In addition to any other payments which
it is required to make under subchapter III of chapter 83
of title 5, United States Code, an agency shall remit to the
Office of Personnel Management for deposit in the Treasury
of the United States to the credit of the Civil Service Retirement
and Disability Fund an amount equal to 15 percent of the
final basic pay of each employee of the agency who is covered
under subchapter III of chapter 83 or chapter 84 of title 5,
United States Code, to whom a voluntary separation incentive
has been paid under this section.
(2) DEFINITION.—For the purpose of paragraph (1), the
term ‘‘final basic pay’’, with respect to an employee, means

110 STAT. 3009–385

PUBLIC LAW 104–208—SEPT. 30, 1996

the total amount of basic pay which would be payable for
a year of service by such employee, computed using the employee’s final rate of basic pay, and, if last serving on other than
a full-time basis, with appropriate adjustment therefor.
(e) EFFECT OF SUBSEQUENT EMPLOYMENT WITH THE GOVERNMENT.—An individual who has received a voluntary separation
incentive payment under this section and accepts any employment
for compensation with the Government of the United States, or
who works for any agency of the United States Government through
a personal services contract, within 5 years after the date of the
separation on which the payment is based shall be required to
pay, prior to the individual’s first day of employment, the entire
amount of the incentive payment to the agency that paid the
incentive payment.
(f) REDUCTION OF AGENCY EMPLOYMENT LEVELS.—
(1) IN GENERAL.—The total number of funded employee
positions in the agency shall be reduced by one position for
each vacancy created by the separation of any employee who
has received, or is due to receive, a voluntary separation incentive payment under this section. For the purposes of this subsection, positions shall be counted on a full-time-equivalent
basis.
(2) ENFORCEMENT.—The President, through the Office of
Management and Budget, shall monitor the agency and take
any action necessary to ensure that the requirements of this
subsection are met.
(g) EFFECTIVE DATE.—This section shall take effect October
1, 1996.
SECTION 664. ELECTRONIC BENEFIT TRANSFER PILOT.

Title 31, United States Code, is amended by inserting after
section 3335 the following new section:
‘‘SEC. 3336. Electronic benefit transfer pilot
‘‘(a) The Congress finds that:
‘‘(1) Electronic benefit transfer (EBT) is a safe, reliable,
and economical way to provide benefit payments to individuals
who do not have an account at a financial institution.
‘‘(2) The designation of financial institutions as financial
agents of the Federal Government for EBT is an appropriate
and reasonable use of the Secretary’s authority to designate
financial agents.
‘‘(3) A joint federal-state EBT system offers convenience
and economies of scale for those states (and their citizens)
that wish to deliver state-administered benefits on a single
card by entering into a partnership with the federal government.
‘‘(4) The Secretary’s designation of a financial agent to
deliver EBT is a specialized service not available through ordinary business channels and may be offered to the states pursuant to section 6501 et seq. of this title.
‘‘(b) The Secretary shall continue to carry out the existing
EBT pilot to disburse benefit payments electronically to recipients
who do not have an account at a financial institution, which shall
include the designation of one or more financial institution as
a financial agent of the Government, and the offering to the participating states of the opportunity to contract with the financial agent

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–386

selected by the Secretary, as described in the Invitation for Expressions of Interest to Acquire EBT Services for the Southern Alliance
of States dated March 9, 1995, as amended as of June 30, 1995,
July 7, 1995, and August 1, 1995.
[‘‘(c) The selection and designation of financial agents, the
design of the pilot program, and any other matter associated with
or related to the EBT pilot described in subsection (b) shall not
be subject to judicial review.’’]
SECTION 2. DESIGNATION OF FINANCIAL AGENTS

1. 12 U.S.C. 90 is amended by adding at the end thereof
the following:
‘‘Notwithstanding the Federal Property and Administrative Services
Act of 1949, as amended, the Secretary may select associations
as financial agents in accordance with any process the Secretary
deems appropriate and their reasonable duties may include the
provision of electronic benefit transfer services (including Stateadministered benefits with the consent of the States), as defined
by the Secretary.’’.
2. Make conforming amendments to 12 U.S.C. 265, 266, 391,
1452(d), 1767, 1789a, 2013, 2122 and to 31 U.S.C. 3122 and 3303.
TITLE VII—COUNTER-TERRORISM AND DRUG LAW
ENFORCEMENT
DEPARTMENT OF THE TREASURY
DEPARTMENTAL OFFICES
SALARIES AND EXPENSES

For an additional amount for the necessary expenses of the
Office of Foreign Assets Control, $288,000: Provided, That of the
amount provided, $288,000 is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.
OFFICE

OF INSPECTOR

GENERAL

SALARIES AND EXPENSES

For an additional amount for the necessary expenses of the
Office of Inspector General, $34,000, to remain available until
expended: Provided, That of the amount provided, $34,000 is designated by Congress as an emergency requirement pursuant to
section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.
COUNTERTERRORISM FUND

For necessary expenses, as determined by the Secretary,
$15,000,000, to remain available until expended, to reimburse any
Department of the Treasury organization for the costs of providing
support to counter, investigate, or prosecute terrorism, including
payment of rewards in connection with these activities: Provided,
That the entire amount of this appropriation shall be available
only to the extent that an official budget request for a specific
dollar amount, that includes designation of the entire amount of

110 STAT. 3009–387

PUBLIC LAW 104–208—SEPT. 30, 1996

the request as an emergency requirement as defined in the Balanced
Budget and Emergency Deficit Control Act of 1985, is transmitted
by the President to Congress: Provided further, That the entire
amount is designated by Congress as an emergency appropriation
pursuant to section 251(b)(2)(D)(i) of such Act.
FEDERAL LAW ENFORCEMENT TRAINING CENTER
SALARIES AND EXPENSES

For an additional amount for the necessary expenses of the
Federal Law Enforcement Training Center, $1,354,000, to remain
available until expended: Provided, That of the amount provided,
$1,354,000 is designated by Congress as an emergency requirement
pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and
Emergency Deficit Control Act of 1985, as amended.
ACQUISITION, CONSTRUCTION, IMPROVEMENTS, AND RELATED
EXPENSES

For an additional amount for the necessary expenses for the
acquisition, construction, improvement, and related expenses,
$2,700,000, to remain available until expended: Provided, That
of the amount provided, $2,700,00 is designated by Congress as
an emergency requirement pursuant to section 251(b)(2)(D)(i) of
the Balanced Budget and Emergency Deficit Control Act of 1985,
as amended.
FINANCIAL MANAGEMENT SERVICE
SALARIES AND EXPENSES

For an additional amount for the necessary expenses of the
Financial Management Service, $449,000, to remain available until
expended: Provided, That of the amount provided, $449,000 is designated by Congress as an emergency requirement pursuant to
section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.
BUREAU

OF

ALCOHOL, TOBACCO

AND

FIREARMS

SALARIES AND EXPENSES

For an additional amount for the necessary expenses of the
Bureau of Alcohol, Tobacco and Firearms, $66,423,000; of which
$3,500,000 shall be available for the construction and expansion
of a canine training facility, to remain available until expended;
of which $3,000,000 shall be available for conducting a study of
car bomb explosives, to remain available until expended; and of
which $6,700,000, to remain available until expended, for relocation
of the Bureau’s headquarters building and laboratory facilities;
Provided, That of the amount provided, $66,423,000 is designated
by Congress as an emergency requirement pursuant to section
251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–388

UNITED STATES CUSTOMS SERVICE
SALARIES AND EXPENSES

For an additional amount for the necessary expense of the
United States Customs Service, $62,335,000; of which not to exceed
$26,400,000 shall be available until expended for funding noncompetitive cooperative agreements with air carriers, airports, or
other cargo authorities, which provide for the Customs Service
to purchase and assist in installing advanced air cargo inspection
equipment for the joint use of such entities and the United States
Customs Service: Provided, That of the amount provided,
$62,335,000 is designated by Congress as an emergency requirement
pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and
Emergency Deficit Control Act of 1985, as amended.
INTERNAL REVENUE SERVICE
PROCESSING, ASSISTANCE AND MANAGEMENT

For an additional amount for the necessary expenses for the
processing, assistance and management, $10,488,000, to remain
available until expended: Provided, That of the amount provided,
$10,488,000 is designated by Congress as an emergency requirement
pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and
Emergency Deficit Control Act of 1985, as amended.
UNITED STATES SECRET SERVICE
SALARIES AND EXPENSES

For an additional amount for the necessary expenses of the
United States Secret Service $3,026,000, to remain available until
expended: Provided, That of the amount provided, $3,026,000 is
designated by Congress as an emergency requirement pursuant
to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended.
INDEPENDENT AGENCIES
OFFICE

OF

PERSONNEL MANAGEMENT

SALARIES AND EXPENSES

For an additional amount for the necessary expenses of the
Office of Personnel Management $210,000, to remain available until
expended: Provided, That of the amount provided, $210,000 is designated by Congress as an emergency requirement pursuant to
section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.

110 STAT. 3009–389

PUBLIC LAW 104–208—SEPT. 30, 1996
FUNDS APPROPRIATED TO THE PRESIDENT
FEDERAL DRUG CONTROL PROGRAMS
SPECIAL FORFEITURE FUND
(INCLUDING TRANSFER OF FUNDS)

For activities authorized by Public Law 100–690, as amended,
$112,900,000, of which $42,000,000 shall be transferred to the
United States Customs Service for the conversion of one P–3AEW
aircraft for the air interdiction program; of which $10,000,000 shall
be available for transfer to other Federal agencies for methamphetamine reduction efforts; and of which $60,900,000 shall be available
to the Director of the Office of National Drug Control Policy for
enhancing other drug control activities, including transfer to other
Federal agencies: Provided, That of the amount provided,
$112,900,000 is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget
and Emergency Deficit Control Act of 1985, as amended to become
available only upon receipt by the Congress of a supplemental
request from the President requesting such designation.
Federal Financial
Management
Improvement Act
of 1996.
31 USC 3512
note.
31 USC 3512
note.

TITLE VIII—FEDERAL FINANCIAL MANAGEMENT
IMPROVEMENT
SEC. 801. SHORT TITLE

This title may be cited as the ‘‘Federal Financial Management
Improvement Act of 1996.’’
SEC. 802. FINDINGS AND PURPOSES.

(a) FINDINGS.—The Congress finds the following:
(1) Much effort has been devoted to strengthening Federal
internal accounting controls in the past. Although progress
has been made in recent years, Federal accounting standards
have not been uniformly implemented in financial management
systems for agencies.
(2) Federal financial management continues to be seriously
deficient, and Federal financial management and fiscal practices have failed to—
(A) identify costs fully;
(B) reflect the total liabilities of congressional actions;
and
(C) accurately report the financial condition of the
Federal Government.
(3) Current Federal accounting practices do not accurately
report financial results of the Federal Government or the full
costs of programs and activities. The continued use of these
practices undermines the Government’s ability to provide credible and reliable financial data and encourages already widespread Government waste, and will not assist in achieving
a balanced budget.
(4) Waste and inefficiency in the Federal Government
undermine the confidence of the American people in the government and reduce the federal Government’s ability to address
vital public needs adequately.
(5) To rebuild the accountability and credibility of the Federal Government, and restore public confidence in the Federal

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–390

Government, agencies must incorporate accounting standards
and reporting objectives established for the Federal Government into their financial management systems so that all the
assets and liabilities, revenues, and expenditures or expenses,
and the full costs of programs and activities of the Federal
Government can be consistently and accurately recorded, monitored, and uniformly reported throughout the Federal Government.
(6) Since its establishment in October 1990, the Federal
Accounting Standards Advisory Board (hereinafter referred to
as the ‘‘FASAB’’) has made substantial progress toward developing and recommending a comprehensive set of accounting concepts and standards for the Federal Government. When the
accounting concepts and standards developed by FASAB are
incorporated into Federal financial management systems, agencies will be able to provide cost and financial information that
will assist the Congress and financial managers to evaluate
the cost and performance of Federal programs and activities,
and will therefore provide important information that has been
lacking, but is needed for improved decision making by financial
managers and the Congress.
(7) The development of financial management systems with
the capacity to support these standards and concepts will, over
the long term, improve Federal financial management.
(b) PURPOSE—The purposes of this Act are to—
(1) provide for consistency of accounting by an agency from
one fiscal year to the next, and uniform accounting standards
throughout the Federal Government;
(2) require Federal financial management systems to support full disclosure of Federal financial data, including the
full costs of Federal programs and activities, to the citizens,
the Congress, the President, and agency management, so that
programs and activities can be considered based on their full
costs and merits;
(3) increase the accountability and credibility of federal
financial management;
(4) improve performance, productivity and efficiency of Federal Government financial management;
(5) establish financial management systems to support
controlling the cost of Federal Government;
(6) build upon and complement the Chief Financial Officers
Act of 1990 (Public Law 101–576; 104 Stat 2838), the Government Performance and Results Act of 1993 (Public Law 103–
62 107 Stat. 285) and the Government Management Reform
Act of 1994 (Public Law 103–356; 108 Stat. 3410); and
(7) increase the capability of agencies to monitor execution
of the budget by more readily permitting reports that compare
spending of resources to results of activities.
SEC. 803. IMPLEMENTATION OF FEDERAL FINANCIAL MANAGEMENT
IMPROVEMENTS.

(a) IN GENERAL.—Each agency shall implement and maintain
financial management systems that comply substantially with Federal financial management systems requirements, applicable Federal accounting standards, and the United States Government
Standard General Ledger at the transaction level.
(b) AUDIT COMPLIANCE FINDING.—

31 USC 3512
note.

110 STAT. 3009–391

PUBLIC LAW 104–208—SEPT. 30, 1996

(1) IN GENERAL.—Each audit required by section 3521(e)
of title 31, United States Code, shall report whether the agency
financial management systems comply with the requirements
of subsection (a).
(2) CONTENT OF REPORTS.—When the person performing
the audit required by section 3521(e) of title 31, United States
Code, reports that the agency financial management systems
do not comply with the requirements of subsection (a), the
person performing the audit shall include in the report on
the audit—
(A) the entity or organization responsible for the financial management systems that have been found not to
comply with the requirements of subsection (a);
(B) all facts pertaining to the failure to comply with
the requirements of subsection (a), including—
(i) the nature and extent of the noncompliance
including areas in which there is substantial but not
full compliance;
(ii) the primary reason or cause of the noncompliance;
(iii) the entity or organization responsible for the
non-compliance; and
(iv) any relevant comments from any responsible
officer or employee; and
(C) a statement with respect to the recommended
remedial actions and the time frames to implement such
actions.
(c) COMPLIANCE IMPLEMENTATION.—
(1) DETERMINATION.—No later than the date described
under paragraph (2), the Head of an agency shall determine
whether the financial management systems of the agency comply with the requirements of subsection (a). Such determination
shall be based on—
(A) a review of the report on the applicable agencywide audited financial statement;
(B) any other information the Head of the agency
considers relevant and appropriate.
(2) DATE OF DETERMINATION.—The determination under
paragraph (1) shall be made no later than 120 days after
the earlier of—
(A) the date of the receipt of an agency-wide audited
financial statement; or
(B) the last day of the fiscal year following the year
covered by such statement.
(3) REMEDIATION PLAN.—
(A) If the Head of an agency determines that the
agency’s financial management systems do not comply with
the requirements of subsection (a), the head of the agency,
in consultation with the Director, shall establish a remediation plan that shall include resources, remedies, and intermediate target dates necessary to bring the agency’s financial management systems into substantial compliance.
(B) If the determination of the head of the agency
differs from the audit compliance findings required in subsection (b), the Director shall review such determinations
and provide a report on the findings to the appropriate
committees of the Congress.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–392

(4) TIME PERIOD FOR COMPLIANCE.—A remediation plan
shall bring the agency’s financial management systems into
substantial compliance no later than 3 years after the date
a determination is made under paragraph (1), unless the
agency, with concurrence of the Director—
(A) determines that the agency’s financial management
systems cannot comply with the requirements of subsection
(a) within 3 years;
(B) specifies the most feasible date for bringing the
agency’s financial management systems into compliance
with the requirements of subsection (a); and
(C) designates an official of the agency who shall be
responsible for bringing the agency’s financial management
systems into compliance with the requirements of subsection (a) by the date specified under subparagraph (B).
SEC. 804. REPORTING REQUIREMENTS.

(a) REPORTS BY THE DIRECTOR.—No later than March 31 of
each year, the Director shall submit a report to the Congress
regarding implementation of this Act. The Director may include
the report in the financial management status report and the 5year financial management plan submitted under section 3512(a)(1)
of title 31, United States Code.
(b) REPORTS BY THE INSPECTOR GENERAL—Each Inspector General who prepares a report under section 5(a) of the Inspector
General Act of 1978 (5 U.S.C. App.) shall report to Congress instances and reasons when an agency has not met the intermediate
target dates established in the remediation plan required under
section 3(c). Specifically the report shall include—
(1) the entity or organization responsible for the noncompliance;
(2) the facts pertaining to the failure to comply with the
requirements of subsection (a), including the nature and extent
of the non-compliance, the primary reason or cause for the
failure to comply, and any extenuating circumstances; and
(3) a statement of the remedial actions needed to comply.
(c) REPORTS BY THE COMPTROLLER GENERAL.—No later than
October 1, 1997, and October 1, of each year thereafter, the
Comptroller General of the United States shall report to the appropriate committees of the Congress concerning—
(1) compliance with the requirements of section 3(a) of
this Act, including whether the financial statements of the
Federal Government have been prepared in accordance with
applicable accounting standards; and
(2) the adequacy of applicable accounting standards for
the Federal Government.
SEC. 805. CONFORMING AMENDMENTS.

(a) AUDITS BY AGENCIES.—Section 3521(f)(1) of title 31, United
States Code, is amended in the first sentence by inserting ‘‘and
the Controller of the Office of Federal Financial Management’’
before the period.
(b) FINANCIAL MANAGEMENT STATUS REPORT.—Section
3512(a)(2) of title 31, United States Code, is amended by—
(1) in subparagraph (D) by striking ‘‘and’ after the semicolon;
(2) by redesignating subparagraph (E) as subparagraph
(F); and

31 USC 3512
note.

31 USC 3512
note.

110 STAT. 3009–393

5 USC app.

PUBLIC LAW 104–208—SEPT. 30, 1996

(3) by inserting after subparagraph (D) the following:
‘‘(E) a listing of agencies whose financial management
systems do not comply substantially with the requirements
of Section 3(a) the Federal Financial Management Improvement Act of 1996, and a summary statement of the efforts
underway to remedy the noncompliance; and’’
(c) INSPECTOR GENERAL ACT OF 1978.—Section 5(a) of the
Inspector General Act of 1978 is amended—
(1) in paragraph (11) by striking ‘‘and’’ after the semicolon;
(2) in paragraph (12) by striking the period and inserting
‘‘; and’’; and
(3) by adding at the end the following new paragraph:
‘‘(13) the information described under section 05(b) of the
Federal Financial Management Improvement Act of 1996.’’

31 USC 3512
note.

SEC. 806. DEFINITIONS.

31 USC 3512
note.

SEC. 807. EFFECTIVE DATE.

For purposes of this title:
(1) AGENCY.—The term ‘‘agency’’ means a department or
agency of the United States Government as defined in section
901(b) of title 31, United States Code.
(2) DIRECTOR.—The term ‘‘Director’’ means the Director
of the Office of Management and Budget.
(3) FEDERAL ACCOUNTING STANDARDS.—The term ‘‘Federal
accounting standards’’ means applicable accounting principles,
standards, and requirements consistent with section
902(a)(3)(A) of title 31, United States Code.
(4) FINANCIAL MANAGEMENT SYSTEMS.—The term ‘‘financial
management systems’’ includes the financial systems and the
financial portions of mixed systems necessary to support financial management, including automated and manual processes,
procedures, controls, data, hardware, software, and support
personnel dedicated to the operation and maintenance of system
functions.
(5) FINANCIAL SYSTEM.—The term ‘‘financial system’’
includes an information system, comprised of one or more
applications, that is used for—
(A) collecting, processing, maintaining, transmitting,
or reporting data about financial events;
(B) supporting financial planning or budgeting activities;
(C) accumulating and reporting costs information; or
(D) supporting the preparation of financial statements.
(6) MIXED SYSTEM.—The term ‘‘mixed system’ means
an information system that supports both financial and
nonfinancial functions of the Federal Government or components thereof.
This title shall take effect for the fiscal year ending September
30, 1997.
SEC. 808. REVISION OF SHORT TITLES.—

(a) Section 4001 of Public Law 104–106 (110 Stat. 642; 41
U.S.C. 251 note) is amended to read as follows:
‘‘SEC. 4001. SHORT TITLE.

‘‘This division and division E may be cited as the ‘ClingerCohen Act of 1996’.’’.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–394

(b) Section 5001 of Public Law 104–106 (110 Stat. 679; 40
U.S.C. 1401 note) is amended to read as follows:
‘‘SEC. 5001. SHORT TITLE.

‘‘This division and division D may be cited as the ‘ClingerCohen Act of 1996’.’’.
(c) Any reference in any law, regulation, document, record,
or other paper of the United States to the Federal Acquisition
Reform Act of 1996 or to the Information Technology Management
Reform Act of 1996 shall be considered to be a reference to the
Clinger-Cohen Act of 1996.
This Act may be cited as the ‘‘Treasury, Postal Service, and
General Government Appropriations Act, 1997’’.

TITLE II—ECONOMIC GROWTH AND
REGULATORY PAPERWORK REDUCTION
SEC. 2001. SHORT TITLE; TABLE OF CONTENTS; DEFINITIONS

(a) SHORT TITLE.—This title may be cited as the ‘‘Economic
Growth and Regulatory Paperwork Reduction Act of 1996’’.
(b) TABLE OF CONTENTS.—The table of contents for this title
is as follows:
TITLE II—ECONOMIC GROWTH AND REGULATORY
PAPERWORK REDUCTION
Sec. 2001. Short title; table of contents; definitions

Subtitle A—Streamlining the Home Mortgage Lending Process
Sec. 2101. Simplification and unification of disclosures required under
RESPA and TILA for mortgage transactions.
Sec. 2102. General exemption authority for loans.
Sec. 2103. Reductions in Real Estate Settlement Procedures Act of 1974
regulatory burdens.
Sec. 2104. Waiver for certain borrowers.
Sec. 2105. Alternative disclosures for adjustable rate mortgages.
Sec. 2106. Restitution for violations of the Truth in Lending Act.
Sec. 2107. Limitation on liability under the Truth in Lending Act.

Subtitle B—Streamlining Government Regulation
CHAPTER 1—ELIMINATING UNNECESSARY REGULATORY
REQUIREMENTS AND PROCEDURES
Sec. 2201. Elimination of redundant approval requirement for Oakar transactions.
Sec. 2202. Elimination of duplicative requirements imposed upon bank
holding companies.
Sec. 2203. Elimination of the per branch capital requirement for national
banks and State member banks.
Sec. 2204. Elimination of branch application requirements for automatic
teller machines.

Economic Growth
and Regulatory
Paperwork
Reduction Act of
1996.
12 USC 226 note.

110 STAT. 3009–395

PUBLIC LAW 104–208—SEPT. 30, 1996

Sec. 2205. Elimination of requirement for approval of investments in bank
premises for well capitalized and well managed banks.
Sec. 2206. Elimination of approval requirement for divestitures.
Sec. 2207. Streamlined nonbanking acquisitions by well capitalized and
well managed banking organizations.
Sec. 2208. Elimination of unnecessary filing for officer and director
appointments.
Sec. 2209. Amendments to the Depository Institution Management Interlocks Act.
Sec. 2210. Elimination of recordkeeping and reporting requirements for
officers.
Sec. 2211. Repayment of Treasury loan.
Sec. 2212. Branch closures.
Sec. 2213. Foreign banks.
Sec. 2214. Disposition of foreclosed assets.
Sec. 2215. Exemption authority for antitying provision.
Sec. 2216. FDIC approval of new State bank powers.

CHAPTER 2—ELIMINATING UNNECESSARY REGULATORY BURDENS
Sec. 2221. Small bank examination cycle.
Sec. 2222. Required review of regulations.
Sec. 2223. Repeal of identification of nonbank financial institution customers.
Sec. 2224. Repeal of certain reporting requirements.
Sec. 2225. Increase in home mortgage disclosure exemption threshold.
Sec. 2226. Elimination of stock loan reporting requirement.
Sec. 2227. Credit availability assessment.

CHAPTER 3—REGULATORY MICROMANAGEMENT
Sec. 2241. National bank directors.
Sec. 2242. Paperwork reduction review.
Sec. 2243. State bank representation on Board of Directors of the FDIC.
Sec. 2244. Consultation among examiners.

Subtitle C—Regulatory Impact on Cost of Credit and Credit
Availability
Sec. 2301. Audit costs.
Sec. 2302. Incentives for self-testing.
Sec. 2303. Qualified thrift investment amendments.
Sec. 2304. Limited purpose banks.
Sec. 2305. Amendment to Fair Debt Collection Practices Act.
Sec. 2306. Increase in certain credit union loan ceilings.
Sec. 2307. Bank investments in Edge Act and agreement corporations.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–396

Subtitle D—Consumer Credit
CHAPTER 1—CREDIT REPORTING REFORM
Sec. 2401. Short title.
Sec. 2402. Definitions.
Sec. 2403. Furnishing consumer reports; use for employment purposes.
Sec. 2404. Use of consumer reports for prescreening and direct marketing;
prohibition on unauthorized or uncertified use of information.
Sec. 2405. Consumer consent required to furnish consumer report containing medical information.
Sec. 2406. Obsolete information and information contained in consumer
reports.
Sec. 2407. Compliance procedures.
Sec. 2408. Consumer disclosures.
Sec. 2409. Procedures in case of the disputed accuracy of any information
in a consumer’s file.
Sec. 2410. Charges for certain disclosures.
Sec. 2411. Duties of users of consumer reports.
Sec. 2412. Civil liability.
Sec. 2413. Responsibilities of persons who furnish information to consumer
reporting agencies.
Sec. 2414. Investigative consumer reports.
Sec. 2415. Increased criminal penalties for obtaining information under
false pretenses.
Sec. 2416. Administrative enforcement.
Sec. 2417. State enforcement of Fair Credit Reporting Act.
Sec. 2418. Federal Reserve Board authority.
Sec. 2419. Preemption of State law.
Sec. 2420. Effective date.
Sec. 2421. Relationship to other law.
Sec. 2422. Federal Reserve Board study.

CHAPTER 2—CREDIT REPAIR ORGANIZATIONS
Sec. 2451. Regulation of credit repair organizations.
Sec. 2452. Credit worthiness.

Subtitle E—Asset Conservation, Lender Liability, and Deposit
Insurance Protection
Sec. 2501. Short title.
Sec. 2502. CERCLA lender and fiduciary liability limitations amendments.
Sec. 2503. Conforming amendment.
Sec. 2504. Lender liability rule.
Sec. 2505. Effective date.

Subtitle F—Miscellaneous
Sec. 2601. Federal Reserve Board study.

110 STAT. 3009–397

PUBLIC LAW 104–208—SEPT. 30, 1996

Sec. 2602. Treatment of claims arising from breach of contracts executed
by the receiver or conservator.
Sec. 2603. Criminal sanctions for fictitious financial instruments and
counterfeiting.
Sec. 2604. Amendments to the Truth in Savings Act.
Sec. 2605. Consumer Leasing Act amendments.
Sec. 2606. Study of corporate credit unions.
Sec. 2607. Report on the reconciliation of differences between regulatory
accounting principles and generally accepted accounting principles.
Sec. 2608. State-by-State and metropolitan area-by-metropolitan area study
of bank fees.
Sec. 2609. Prospective application of gold clauses in contracts.
Sec. 2610. Qualified family partnerships.
Sec. 2611. Cooperative efforts between depository institutions and farmers
and ranchers in drought-stricken areas.
Sec. 2612. Streamlining process for determining new nonbanking activities.
Sec. 2613. Authorizing bank service companies to organize as limited liability partnerships.
Sec. 2614. Retirement certificates of deposits.
Sec. 2615. Prohibitions on certain depository institution associations with
Government-sponsored enterprises.

Subtitle G—Deposit Insurance Funds
Sec. 2701. Short title.
Sec. 2702. Special assessment to capitalize SAIF.
Sec. 2703. Financing corporation funding.
Sec. 2704. Merger of BIF and SAIF.
Sec. 2705. Creation of SAIF special reserve.
Sec. 2706. Refund of amounts in deposit insurance fund in excess of designated reserve amount.
Sec. 2707. Assessment rates for SAIF members may not be less than assessment rates for BIF members.
Sec. 2708. Assessments authorized only if needed to maintain the reserve
ratio of a deposit insurance fund.
Sec. 2709. Treasury study of common depository institution charter.
Sec. 2710. Definitions.
Sec. 2711. Deductions for special assessments.
12 USC 252 note.

(c) DEFINITIONS.—Except as otherwise specified in this title,
the following definitions shall apply for purposes of this title:
(1) APPRAISAL SUBCOMMITTEE.—The term ‘‘Appraisal Subcommittee’’ means the Appraisal Subcommittee established
under section 1011 of the Federal Financial Institutions Examination Council Act of 1978 (as in existence on the day before
the date of enactment of this Act).
(2) APPROPRIATE FEDERAL BANKING AGENCY.—The term
‘‘appropriate Federal banking agency’’ has the same meaning
as in section 3 of the Federal Deposit Insurance Act.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–398

(3) BOARD.—The term ‘‘Board’’ means the Board of Governors of the Federal Reserve System.
(4) CORPORATION.—The term ‘‘Corporation’’ means the Federal Deposit Insurance Corporation.
(5) COUNCIL.—The term ‘‘Council’’ means the Financial
Institutions Examination Council established under section
1004 of the Federal Financial Institutions Examination Council
Act of 1978.
(6) INSURED CREDIT UNION.—The term ‘‘insured credit
union’’ has the same meaning as in section 101 of the Federal
Credit Union Act.
(7) INSURED DEPOSITORY INSTITUTION.—The term ‘‘insured
depository institution’’ has the same meaning as in section
3 of the Federal Deposit Insurance Act.

Subtitle A—Streamlining the Home
Mortgage Lending Process
SEC. 2101. SIMPLIFICATION AND UNIFICATION OF DISCLOSURES
REQUIRED UNDER RESPA AND TILA FOR MORTGAGE
TRANSACTIONS.

(a) IN GENERAL.—With respect to credit transactions which
are subject to the Real Estate Settlement Procedures Act of 1974
and the Truth in Lending Act, the Board of Governors of the
Federal Reserve System (hereafter in this section referred to as
the ‘‘Board’’) and the Secretary of Housing and Urban Development
(hereafter in this section referred to as the ‘‘Secretary’’) shall take
such action as may be necessary before the end of the 6-month
period beginning on the date of enactment of this Act—
(1) to simplify and improve the disclosures applicable to
such transactions under such Acts, including the timing of
the disclosures; and
(2) to provide a single format for such disclosures which
will satisfy the requirements of each such Act with respect
to such transactions.
(b) REGULATIONS.—To the extent that it is necessary to prescribe any regulation in order to effect any changes required to
be made under subsection (a), the proposed regulation shall be
published in the Federal Register before the end of the 6-month
period referred to in subsection (a).
(c) RECOMMENDATIONS FOR LEGISLATION.—If the Board and
the Secretary find that legislative action may be necessary or appropriate in order to simplify and unify the disclosure requirements
under the Real Estate Settlement Procedures Act of 1974 and
the Truth in Lending Act, the Board and the Secretary shall submit
a report containing recommendations to the Congress concerning
such action.
SEC. 2102. GENERAL EXEMPTION AUTHORITY FOR LOANS.

(a) REGULATORY FLEXIBILITY.—Section 104 of the Truth in
Lending Act (15 U.S.C. 1603) is amended—
(1) by redesignating paragraphs (5) and (6) as paragraphs
(6) and (7), respectively; and
(2) by inserting after paragraph (4) the following new paragraph:

12 USC 2601
note.

110 STAT. 3009–399

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(5) Transactions for which the Board, by rule, determines
that coverage under this title is not necessary to carry out
the purposes of this title.’’.
(b) EXEMPTION AUTHORITY.—Section 105 of the Truth in Lending Act (15 U.S.C. 1604) is amended by adding at the end the
following new subsection:
‘‘(f) EXEMPTION AUTHORITY.—
‘‘(1) IN GENERAL.—The Board may exempt, by regulation,
from all or part of this title any class of transactions, other
than transactions involving any mortgage described in section
103(aa), for which, in the determination of the Board, coverage
under all or part of this title does not provide a meaningful
benefit to consumers in the form of useful information or protection.
‘‘(2) FACTORS FOR CONSIDERATION.—In determining which
classes of transactions to exempt in whole or in part under
paragraph (1), the Board shall consider the following factors
and publish its rationale at the time a proposed exemption
is published for comment:
‘‘(A) The amount of the loan and whether the disclosures, right of rescission, and other provisions provide a
benefit to the consumers who are parties to such transactions, as determined by the Board.
‘‘(B) The extent to which the requirements of this title
complicate, hinder, or make more expensive the credit process for the class of transactions.
‘‘(C) The status of the borrower, including—
‘‘(i) any related financial arrangements of the borrower, as determined by the Board;
‘‘(ii) the financial sophistication of the borrower
relative to the type of transaction; and
‘‘(iii) the importance to the borrower of the credit,
related supporting property, and coverage under this
title, as determined by the Board;
‘‘(D) whether the loan is secured by the principal residence of the consumer; and
‘‘(E) whether the goal of consumer protection would
be undermined by such an exemption.’’.
SEC. 2103. REDUCTIONS IN REAL ESTATE SETTLEMENT PROCEDURES
ACT OF 1974 REGULATORY BURDENS.

(a) UNNECESSARY DISCLOSURE.—Section 6(a) of the Real Estate
Settlement Procedures Act of 1974 (12 U.S.C. 2605(a)) is amended
to read as follows:
‘‘(a) DISCLOSURE TO APPLICANT RELATING TO ASSIGNMENT, SALE,
OR TRANSFER OF LOAN SERVICING.—Each person who makes a
federally related mortgage loan shall disclose to each person who
applies for the loan, at the time of application for the loan, whether
the servicing of the loan may be assigned, sold, or transferred
to any other person at any time while the loan is outstanding.’’.
(b) CONSISTENCY OF REAL ESTATE SETTLEMENT PROCEDURES
ACT AND TRUTH IN LENDING ACT EXEMPTION OF BUSINESS LOANS.—
Section 7 of the Real Estate Settlement Procedures Act of 1974
(12 U.S.C. 2606) is amended—
(1) by striking ‘‘This Act’’ and inserting the following:
‘‘(a) IN GENERAL.—This Act’’; and
(2) by adding at the end the following new subsection:

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–400

‘‘(b) INTERPRETATION.—In prescribing regulations under section
19(a), the Secretary shall ensure that, with respect to subsection
(a) of this section, the exemption for credit transactions involving
extensions of credit primarily for business, commercial, or agricultural purposes, as provided in section 7(1) of the Real Estate Settlement Procedures Act of 1974 shall be the same as the exemption
for such credit transactions under section 104(1) of the Truth in
Lending Act.’’.
(c) REDESIGNATION OF CONTROLLED BUSINESS ARRANGEMENTS
AS AFFILIATED BUSINESS ARRANGEMENTS.—The Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2601 et seq.) is amended—
(1) in section 3(7), by striking ‘‘controlled business arrangement’’ and inserting ‘‘affiliated business arrangement’’; and
(2) in subsections (c)(4) and (d)(6) of section 8, by striking
‘‘controlled business arrangements’’ and inserting ‘‘affiliated
business arrangements’’.
(d) DISCLOSURES BY TELEPHONE OR ELECTRONIC MEDIA.—Section 8(c)(4) of the Real Estate Settlement Procedures Act of 1974
(12 U.S.C. 2607(c)(4)(A)) is amended by striking subparagraph (A)
and inserting the following ‘‘(A) a disclosure is made of the existence
of such an arrangement to the person being referred and, in connection with such referral, such person is provided a written estimate
of the charge or range of charges generally made by the provider
to which the person is referred (i) in the case of a face-to-face
referral or a referral made in writing or by electronic media, at
or before the time of the referral (and compliance with this requirement in such case may be evidenced by a notation in a written,
electronic, or similar system of records maintained in the regular
course of business); (ii) in the case of a referral made by telephone,
within 3 business days after the referral by telephone, (and in
such case an abbreviated verbal disclosure of the existence of the
arrangement and the fact that a written disclosure will be provided
within 3 business days shall be made to the person being referred
during the telephone referral); or (iii) in the case of a referral
by a lender (including a referral by a lender to an affiliated lender),
at the time the estimates required under section 5(c) are provided
(notwithstanding clause (i) or (ii)); and any required written receipt
of such disclosure (without regard to the manner of the disclosure
under clause (i), (ii), or (iii)) may be obtained at the closing or
settlement (except that a person making a face-to-face referral
who provides the written disclosure at or before the time of the
referral shall attempt to obtain any required written receipt of
such disclosure at such time and if the person being referred chooses
not to acknowledge the receipt of the disclosure at that time, that
fact shall be noted in the written, electronic, or similar system
of records maintained in the regular course of business by the
person making the referral),’’.
(e) LIMITATION ON CLAIMS ARISING FROM VIOLATIONS OF
REQUIREMENTS FOR SERVICING MORTGAGES AND ADMINISTERING
ESCROW ACCOUNTS.—Section 16 of the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2614) is amended—
(1) by striking ‘‘section 8 or 9’’ and inserting ‘‘section 6,
8, or 9’’; and
(2) by striking ‘‘within one year’’ and inserting ‘‘within
3 years in the case of a violation of section 6 and 1 year
in the case of a violation of section 8 or 9’’.

12 USC 2602.
12 USC 2607.

110 STAT. 3009–401

12 USC 2611–
2613.

PUBLIC LAW 104–208—SEPT. 30, 1996

(f) DELAY OF EFFECTIVENESS OF RECENT FINAL REGULATION
RELATING TO PAYMENTS TO EMPLOYEES.—Section 19 of the Real
Estate Settlement Procedures Act of 1974 (12 U.S.C. 2617) is
amended by adding at the end the following new subsection:
‘‘(d) DELAY OF EFFECTIVENESS OF RECENT FINAL REGULATION
RELATING TO PAYMENTS TO EMPLOYEES.—
‘‘(1) IN GENERAL.—The amendment to part 3500 of title
24 of the Code of Federal Regulations contained in the final
regulation prescribed by the Secretary and published in the
Federal Register on June 7, 1996, which will, as of the effective
date of such amendment—
‘‘(A) eliminate the exemption for payments by an
employer to employees of such employer for referral activities which is currently codified as section 3500.14(g)(1)(vii)
of such title 24; and
‘‘(B) replace such exemption with a more limited
exemption in new clauses (vii), (viii), and (ix) of section
3500.14 of such title 24,
shall not take effect before July 31, 1997.
‘‘(2) CONTINUATION OF PRIOR RULE.—The regulation codified
as section 3500.14(g)(1)(vii) of title 24 of the Code of Federal
Regulations, relating to employer-employee payments, as in
effect on May 1, 1996, shall remain in effect until the date
the amendment referred to in paragraph (1) takes effect in
accordance with such paragraph.
‘‘(3) PUBLIC NOTICE OF EFFECTIVE DATE.—The Secretary
shall provide public notice of the date on which the amendment
referred to in paragraph (1) will take effect in accordance
with such paragraph not less than 90 days and not more
than 180 days before such effective date.’’.
(g) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 4(a) of the Real Estate Settlement Procedures
Act of 1974 (12 U.S.C. 2603(a)) is amended by striking ‘‘Federal
Home Loan Bank Board’’ and inserting ‘‘Director of the Office
of Thrift Supervision’’.
(2) Section 10(c)(1)(C) of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2609(c)(1)(C)) is amended by
striking ‘‘Not later than the expiration of the 90-day period
beginning on the date of the enactment of the Cranston-Gonzalez National Affordable Housing Act, the’’ and inserting
‘‘The’’.
(h) REPEAL OF OBSOLETE PROVISIONS.—The Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2601 et seq.) is amended
by striking sections 13, 14 and 15.
SEC. 2104. WAIVER FOR CERTAIN BORROWERS.

Section 105 of the Truth in Lending Act (15 U.S.C. 1604)
is amended by adding at the end the following new subsection:
‘‘(g) WAIVER FOR CERTAIN BORROWERS.—
‘‘(1) IN GENERAL.—The Board, by regulation, may exempt
from the requirements of this title certain credit transactions
if—
‘‘(A) the transaction involves a consumer—
‘‘(i) with an annual earned income of more than
$200,000; or
‘‘(ii) having net assets in excess of $1,000,000 at
the time of the transaction; and

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–402

‘‘(B) a waiver that is handwritten, signed, and dated
by the consumer is first obtained from the consumer.
‘‘(2) ADJUSTMENTS BY THE BOARD.—The Board, at its discretion, may adjust the annual earned income and net asset
requirements of paragraph (1) for inflation.’’.
SEC. 2105. ALTERNATIVE DISCLOSURES FOR ADJUSTABLE RATE MORTGAGES.

Section 128(a) of the Truth in Lending Act (15 U.S.C. 1638(a))
is amended by adding at the end the following new paragraph:
‘‘(14) In the case of any variable interest rate residential
mortgage transaction, in disclosures provided at application
as prescribed by the Board for a variable rate transaction
secured by the consumer’s principal dwelling, at the option
of the creditor, a statement that the periodic payments may
increase or decrease substantially, and the maximum interest
rate and payment for a $10,000 loan originated at a recent
interest rate, as determined by the Board, assuming the maximum periodic increases in rates and payments under the program, or a historical example illustrating the effects of interest
rate changes implemented according to the loan program.’’.
SEC. 2106. RESTITUTION FOR VIOLATIONS OF THE TRUTH IN LENDING
ACT.

15 USC 1607.

Section 108(e)(3) of the Truth in Lending Act (15 U.S.C. 2602(3))
is amended—
(1) by striking ‘‘ordered (A) if’’ and inserting the following:
‘‘ordered—
‘‘(A) if’’;
(2) by striking ‘‘may require a partial’’ and inserting ‘‘may—
‘‘(i) require a partial’’;
(3) by striking ‘‘, except that with respect’’ and all that
follows through ‘‘Act, the agency shall require’’ and inserting
‘‘; or
‘‘(ii) require’’;
(4) by striking ‘‘reasonable, (B) the’’ and inserting the following: ‘‘reasonable, if (in the case of an agency referred to
in paragraph (1), (2), or (3) of subsection (a)), the agency determines that a partial adjustment or making partial payments
over an extended period is necessary to avoid causing the
creditor to become undercapitalized pursuant to section 38 of
the Federal Deposit Insurance Act;
‘‘(B) the’’; and
(5) by striking ‘‘(C) except’’ and inserting the following:
‘‘(C) except’’.
SEC. 2107. LIMITATION ON LIABILITY UNDER THE TRUTH IN LENDING
ACT.

(a) IN GENERAL.—Section 139(a) of the Truth in Lending Act
(15 U.S.C. 1649(a)) is amended by striking ‘‘For any consumer
credit transaction subject to this title’’ and inserting ‘‘For any closed
end consumer credit transaction that is secured by real property
or a dwelling, that is subject to this title, and’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall be effective as of September 30, 1995.

15 USC 1649
note.

110 STAT. 3009–403

PUBLIC LAW 104–208—SEPT. 30, 1996

Subtitle B—Streamlining Government
Regulation
CHAPTER 1—ELIMINATING UNNECESSARY
REGULATORY REQUIREMENTS AND PROCEDURES
SEC. 2201. ELIMINATION OF REDUNDANT APPROVAL REQUIREMENT
FOR OAKAR TRANSACTIONS.

(a) IN GENERAL.—Section 5(d)(3) of the Federal Deposit Insurance Act (12 U.S.C. 1815(d)(3)) is amended—
(1) in subparagraph (A), by striking ‘‘with the prior written
approval of’’ and inserting ‘‘if the transaction is approved by’’;
(2) in subparagraph (E)—
(A) by striking clauses (i) and (iv);
(B) by redesignating clauses (ii) and (iii) as clauses
(i) and (ii), respectively; and
(C) by adding at the end the following new clause:
‘‘(iii) CAPITAL REQUIREMENTS.—A transaction
described in this paragraph shall not be approved
under section 18(c)(2) unless the acquiring, assuming,
or resulting depository institution will meet all
applicable capital requirements upon consummation of
the transaction.’’;
(3) by striking subparagraph (G); and
(4) by redesignating subparagraphs (H) through (J) as subparagraphs (G) through (I), respectively.
(b) CONFORMING AMENDMENTS.—
(1) REVISED STATUTES.—Section 5156A(b)(1) of the Revised
Statutes of the United States (12 U.S.C. 215c(b)(1)) is amended
by striking ‘‘by section 5(d)(3) of the Federal Deposit Insurance
Act or any other’’ and inserting ‘‘under any’’.
(2) HOME OWNERS’ LOAN ACT.—Section 10(s)(2)(A) of the
Home Owners’ Loan Act (12 U.S.C. 1467a(s)(2)(A)) is amended
by striking ‘‘under section 5(d)(3) of the Federal Deposit Insurance Act or any other’’ and inserting ‘‘under any’’.
SEC. 2203. ELIMINATION OF DUPLICATIVE REQUIREMENTS IMPOSED
UPON BANK HOLDING COMPANIES.

(a) EXEMPTION FOR BANK HOLDING COMPANIES.—Section 10
of the Home Owners’ Loan Act (12 U.S.C. 1467a) is amended
by adding at the end the following new subsection:
‘‘(t) EXEMPTION FOR BANK HOLDING COMPANIES.—This section
shall not apply to a bank holding company that is subject to the
Bank Holding Company Act of 1956, or any company controlled
by such bank holding company.’’.
(b) DEFINITION.—Section 10(a)(1)(D) of the Home Owners’ Loan
Act (12 U.S.C. 1467a(a)(1)(D)) is amended to read as follows:
‘‘(D) SAVINGS AND LOAN HOLDING COMPANY.—
‘‘(i) IN GENERAL.—Except as provided in clause
(ii), the term ‘savings and loan holding company’ means
any company that directly or indirectly controls a savings association or that controls any other company
that is a savings and loan holding company.
‘‘(ii) EXCLUSION.—The term ‘savings and loan holding company’ does not include a bank holding company
that is registered under, and subject to, the Bank

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110 STAT. 3009–404

Holding Company Act of 1956, or to any company
directly or indirectly controlled by such company (other
than a savings association).’’.
(c) ACQUISITIONS.—Section 10(e)(1) of the Home Owners’ Loan
Act (12 U.S.C. 1467a(e)(1)) is amended—
(1) in subparagraph (A)(iii)(VII), by inserting ‘‘or’’ at the
end;
(2) in subparagraph (A)(iv), by inserting ‘‘and’’ at the end;
and
(3) in subparagraph (B)—
(A) by striking ‘‘or (ii)’’ and inserting ‘‘(ii)’’; and
(B) by inserting before the first period ‘‘, or (iii)
acquired by a bank holding company that is registered
under, and subject to, the Bank Holding Company Act
of 1956, or any company controlled by such bank holding
company’’.
(d) AMENDMENTS TO THE BANK HOLDING COMPANY ACT OF
1956.—Section 4(i) of the Bank Holding Company Act of 1956
(12 U.S.C. 1843(i)) is amended by adding at the end the following
new paragraphs:
‘‘(4) SOLICITATION OF VIEWS.—
‘‘(A) NOTICE TO DIRECTOR.—Upon receiving any
application or notice by a bank holding company to acquire,
directly or indirectly, a savings association under subsection (c)(8), the Board shall solicit comments and recommendations from the Director with respect to such
acquisition.
‘‘(B) COMMENT PERIOD.—The comments and recommendations of the Director under subparagraph (A) with
respect to any acquisition subject to such subparagraph
shall be transmitted to the Board not later than 30 days
after the receipt by the Director of the notice relating
to such acquisition (or such shorter period as the Board
may specify if the Board advises the Director that an
emergency exists that requires expeditious action).
‘‘(5) EXAMINATION.—
‘‘(A) SCOPE.—The Board shall consult with the Director,
as appropriate, in establishing the scope of an examination
by the Board of a bank holding company that directly
or indirectly controls a savings association.
‘‘(B) ACCESS TO INSPECTION REPORTS.—Upon the
request of the Director, the Board shall furnish the Director
with a copy of any inspection report, additional examination
materials, or supervisory information relating to any bank
holding company that directly or indirectly controls a savings association.
‘‘(6) COORDINATION OF ENFORCEMENT EFFORTS.—The Board
and the Director shall cooperate in any enforcement action
against any bank holding company that controls a savings
association, if the relevant conduct involves such association.
‘‘(7) DIRECTOR DEFINED.—For purposes of this section, the
term ‘Director’ means the Director of the Office of Thrift Supervision.’’.

110 STAT. 3009–405

PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 2204. ELIMINATION OF THE PER BRANCH CAPITAL REQUIREMENT
FOR NATIONAL BANKS AND STATE MEMBER BANKS.

Section 5155(h) of the Revised Statutes of the United States
(12 U.S.C. 36(h)) is amended to read as follows:
‘‘(h) [Repealed]’’.
SEC. 2205. ELIMINATION OF BRANCH APPLICATION REQUIREMENTS
FOR AUTOMATIC TELLER MACHINES.

(a) ‘‘BRANCH’’ UNDER NATIONAL BANK ACT.—Section 5155(j)
of the Revised Statutes of the United States (12 U.S.C. 36(j)) is
amended by adding at the end the following: ‘‘The term ‘branch’,
as used in this section, does not include an automated teller
machine or a remote service unit.’’.
(b) ‘‘DOMESTIC BRANCH’’ UNDER THE FEDERAL DEPOSIT INSURANCE ACT.—Section 3(o) of the Federal Deposit Insurance Act (12
U.S.C. 1813(o)) is amended by striking ‘‘lent; and the’’ and inserting
‘‘lent. The term ‘domestic branch’ does not include an automated
teller machine or a remote service unit. The’’.
SEC. 2206. ELIMINATION OF REQUIREMENT FOR APPROVAL OF INVESTMENTS IN BANK PREMISES FOR WELL CAPITALIZED AND
WELL MANAGED BANKS.

Section 24A of the Federal Reserve Act (12 U.S.C. 371d) is
amended to read as follows:
‘‘SEC. 24A. INVESTMENT IN BANK PREMISES OR STOCK OF CORPORATION HOLDING PREMISES.

‘‘(a) CONDITIONS OF INVESTMENT.—No national bank or State
member bank shall invest in bank premises, or in the stock, bonds,
debentures, or other such obligations of any corporation holding
the premises of such bank, or make loans to or upon the security
of any such corporation—
‘‘(1) unless the bank receives the prior approval of the
Comptroller of the Currency (with respect to a national bank)
or the Board (with respect to a State member bank);
‘‘(2) unless the aggregate of all such investments and loans,
together with the amount of any indebtedness incurred by
any such corporation that is an affiliate of the bank, is less
than or equal to the amount of the capital stock of such bank;
or
‘‘(3) unless—
‘‘(A) the aggregate of all such investments and loans,
together with the amount of any indebtedness incurred
by any such corporation that is an affiliate of the bank,
is less than or equal to 150 percent of the capital and
surplus of the bank; and
‘‘(B) the bank—
‘‘(i) has a CAMEL composite rating of 1 or 2 under
the Uniform Financial Institutions Rating System (or
an equivalent rating under a comparable rating system) as of the most recent examination of such bank;
‘‘(ii) is well capitalized and will continue to be
well capitalized after the investment or loan; and
‘‘(iii) provides notification to the Comptroller of
the Currency (with respect to a national bank) or to
the Board (with respect to a State member bank) not
later than 30 days after making the investment or
loan.

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110 STAT. 3009–406

‘‘(b) DEFINITIONS.—For purposes of this section—
‘‘(1) the term ‘affiliate’ has the same meaning as in section
2 of the Banking Act of 1933; and
‘‘(2) the term ‘well capitalized’ has the same meaning as
in section 38(b) of the Federal Deposit Insurance Act.’’.
SEC.

2207.

ELIMINATION OF
DIVESTITURES.

APPROVAL

REQUIREMENT

FOR

Section 2(g) of the Bank Holding Company Act of 1956 (12
U.S.C. 1841(g)) is amended—
(1) in paragraph (1), by adding ‘‘and’’ at the end;
(2) in paragraph (2), by striking ‘‘; and’’ and inserting
a period; and
(3) by striking paragraph (3).
SEC. 2208. STREAMLINED NONBANKING ACQUISITIONS BY WELL
CAPITALIZED AND WELL MANAGED BANKING ORGANIZATIONS.

(a) NOTICE REQUIREMENTS.—Section 4(j) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1843(j)) is amended—
(1) in paragraph (1)(A), by striking ‘‘No’’ and inserting
‘‘Except as provided in paragraph (3), no’’; and
(2) by adding at the end the following new paragraphs:
‘‘(3) NO NOTICE REQUIRED FOR CERTAIN TRANSACTIONS.—
No notice under paragraph (1) of this subsection or under
subsection (c)(8) or (a)(2)(B) is required for a proposal by a
bank holding company to engage in any activity or acquire
the shares or assets of any company, other than an insured
depository institution, if the proposal qualifies under paragraph
(4).
‘‘(4) CRITERIA FOR STATUTORY APPROVAL.—A proposal qualifies under this paragraph if all of the following criteria are
met:
‘‘(A) FINANCIAL CRITERIA.—Both before and immediately after the proposed transaction—
‘‘(i) the acquiring bank holding company is well
capitalized;
‘‘(ii) the lead insured depository institution of such
holding company is well capitalized;
‘‘(iii) well capitalized insured depository institutions control at least 80 percent of the aggregate total
risk-weighted assets of insured depository institutions
controlled by such holding company; and
‘‘(iv) no insured depository institution controlled
by such holding company is undercapitalized.
‘‘(B) MANAGERIAL CRITERIA.—
‘‘(i) WELL MANAGED.—At the time of the transaction, the acquiring bank holding company, its lead
insured depository institution, and insured depository
institutions that control at least 90 percent of the
aggregate total risk-weighted assets of insured depository institutions controlled by such holding company
are well managed.
‘‘(ii) LIMITATION ON POORLY MANAGED INSTITUTIONS.—Except as provided in paragraph (6), no
insured depository institution controlled by the acquiring bank holding company has received 1 of the 2

110 STAT. 3009–407

PUBLIC LAW 104–208—SEPT. 30, 1996
lowest composite ratings at the later of the institution’s
most recent examination or subsequent review.
‘‘(C) ACTIVITIES PERMISSIBLE.—Following consummation of the proposal, the bank holding company engages
directly or through a subsidiary solely in—
‘‘(i) activities that are permissible under subsection
(c)(8), as determined by the Board by regulation or
order thereunder, subject to all of the restrictions,
terms, and conditions of such subsection and such regulation or order; and
‘‘(ii) such other activities as are otherwise permissible under this section, subject to the restrictions,
terms and conditions, including any prior notice or
approval requirements, provided in this section.
‘‘(D) SIZE OF ACQUISITION.—
‘‘(i) ASSET SIZE.—The book value of the total assets
to be acquired does not exceed 10 percent of the consolidated total risk-weighted assets of the acquiring bank
holding company.
‘‘(ii) CONSIDERATION.—The gross consideration to
be paid for the securities or assets does not exceed
15 percent of the consolidated Tier 1 capital of the
acquiring bank holding company.
‘‘(E) NOTICE NOT OTHERWISE WARRANTED.—For proposals described in paragraph (5)(B), the Board has not, before
the conclusion of the period provided in paragraph (5)(B),
advised the bank holding company that a notice under
paragraph (1) is required.
‘‘(F) COMPLIANCE CRITERION.—During the 12-month
period ending on the date on which the bank holding company proposes to commence an activity or acquisition, no
administrative enforcement action has been commenced,
and no cease and desist order has been issued pursuant
to section 8 of the Federal Deposit Insurance Act, against
the bank holding company or any depository institution
subsidiary of the holding company, and no such enforcement action, order, or other administrative enforcement
proceeding is pending as of such date.
‘‘(5) NOTIFICATION.—
‘‘(A) COMMENCEMENT OF ACTIVITIES APPROVED BY
RULE.—A bank holding company that qualifies under paragraph (4) and that proposes to engage de novo, directly
or through a subsidiary, in any activity that is permissible
under subsection (c)(8), as determined by the Board by
regulation, may commence that activity without prior notice
to the Board and must provide written notification to the
Board not later than 10 business days after commencing
the activity.
‘‘(B) ACTIVITIES PERMITTED BY ORDER AND ACQUISITIONS.—
‘‘(i) IN GENERAL.—At least 12 business days before
commencing any activity pursuant to paragraph (3)
(other than an activity described in subparagraph (A)
of this paragraph) or acquiring shares or assets of

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110 STAT. 3009–408

any company pursuant to paragraph (3), the bank holding company shall provide written notice of the proposal to the Board, unless the Board determines that
no notice or a shorter notice period is appropriate.
‘‘(ii) DESCRIPTION OF ACTIVITIES AND TERMS.—A
notification under this subparagraph shall include a
description of the proposed activities and the terms
of any proposed acquisition.
‘‘(6) RECENTLY ACQUIRED INSTITUTIONS.—Any insured
depository institution which has been acquired by a bank holding company during the 12-month period preceding the date
on which the company proposes to commence an activity or
acquisition pursuant to paragraph (3) may be excluded for
purposes of paragraph (4)(B)(ii) if—
‘‘(A) the bank holding company has developed a plan
for the institution to restore the capital and management
of the institution which is acceptable to the appropriate
Federal banking agency; and
‘‘(B) all such insured depository institutions represent,
in the aggregate, less than 10 percent of the aggregate
total risk-weighted assets of all insured depository institutions controlled by the bank holding company.
‘‘(7) ADJUSTMENT OF PERCENTAGES.—The Board may, by
regulation, adjust the percentages and the manner in which
the percentages of insured depository institutions are calculated
under paragraph (4)(B)(i), (4)(D), or (6)(B) if the Board determines that any such adjustment is consistent with safety and
soundness and the purposes of this Act.’’.
(b) DEFINITIONS.—Section 2(o) of the Bank Holding Company
Act of 1956 (12 U.S.C. 1841(o)) is amended—
(1) by striking paragraph (1) and inserting the following
new paragraph:
‘‘(1) CAPITAL TERMS.—
‘‘(A) INSURED DEPOSITORY INSTITUTIONS.—With respect
to insured depository institutions, the terms ‘well capitalized’, ‘adequately capitalized’, and ‘undercapitalized’ have
the same meanings as in section 38(b) of the Federal
Deposit Insurance Act.
‘‘(B) BANK HOLDING COMPANY.—
‘‘(i) ADEQUATELY CAPITALIZED.—With respect to a
bank holding company, the term ‘adequately capitalized’ means a level of capitalization which meets or
exceeds all applicable Federal regulatory capital standards.
‘‘(ii) WELL CAPITALIZED.—A bank holding company
is ‘well capitalized’ if it meets the required capital
levels for well capitalized bank holding companies
established by the Board.
‘‘(C) OTHER CAPITAL TERMS.—The terms ‘Tier 1’ and
‘risk-weighted assets’ have the meanings given those terms
in the capital guidelines or regulations established by the
Board for bank holding companies.’’; and
(2) by adding at the end the following new paragraphs:
‘‘(8) LEAD INSURED DEPOSITORY INSTITUTIONS.—
‘‘(A) IN GENERAL.—The term ‘lead insured depository
institution’ means the largest insured depository institution
controlled by the subject bank holding company at any

110 STAT. 3009–409

PUBLIC LAW 104–208—SEPT. 30, 1996
time, based on a comparison of the average total riskweighted assets controlled by each insured depository
institution during the previous 12-month period.
‘‘(B) BRANCH OR AGENCY.—For purposes of this paragraph and section 4(j)(4), the term ‘insured depository
institution’ includes any branch or agency operated in the
United States by a foreign bank.
‘‘(9) WELL MANAGED.—The term ‘well managed’ means—
‘‘(A) in the case of any company or depository institution which receives examinations, the achievement of—
‘‘(i) a CAMEL composite rating of 1 or 2 (or an
equivalent rating under an equivalent rating system)
in connection with the most recent examination or
subsequent review of such company or institution; and
‘‘(ii) at least a satisfactory rating for management,
if such rating is given; or
‘‘(B) in the case of a company or depository institution
that has not received an examination rating, the existence
and use of managerial resources which the Board determines are satisfactory.’’.

SEC. 2209. ELIMINATION OF UNNECESSARY FILING FOR OFFICER AND
DIRECTOR APPOINTMENTS.

Section 32 of the Federal Deposit Insurance Act (12 U.S.C.
1831i) is amended—
(1) in subsection (a)—
(A) by inserting ‘‘(or such other period, as determined
by the appropriate Federal banking agency)’’ after ‘‘30
days’’;
(B) by striking ‘‘if the insured depository institution
or depository institution holding company’’ and inserting
‘‘if ’’;
(C) by striking paragraphs (1) and (2);
(D) by redesignating paragraph (3) as paragraph (1);
(E) in paragraph (1), as redesignated—
(i) by inserting ‘‘the insured depository institution
or depository institution holding company’’ before ‘‘is
not in compliance’’; and
(ii) by striking the period at the end and inserting
‘‘; or’’; and
(F) by adding at the end the following new paragraph:
‘‘(2) the agency determines, in connection with the review
by the agency of the plan required under section 38 or otherwise, that such prior notice is appropriate.’’; and
(2) in subsection (b), by striking ‘‘30-day period’’ and inserting ‘‘notice period, not to exceed 90 days,’’.
SEC. 2210. AMENDMENTS TO THE DEPOSITORY INSTITUTION MANAGEMENT INTERLOCKS ACT.

(a) DUAL SERVICE AMONG LARGER ORGANIZATIONS.—Section 204
of the Depository Institution Management Interlocks Act (12 U.S.C.
3203) is amended—
(1)
by
striking
‘‘$1,000,000,000’’
and
inserting
‘‘$2,500,000,000’’;
(2)
by
striking
‘‘$500,000,000’’
and
inserting
‘‘$1,500,000,000’’; and

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–410

(3) by adding at the end the following: ‘‘In order to allow
for inflation or market changes, the appropriate Federal depository institutions regulatory agencies may, by regulation, adjust,
as necessary, the amount of total assets required for depository
institutions or depository holding companies under this section.’’.
(b) EXTENSION OF GRANDFATHER EXEMPTION.—Section 206 of
the Depository Institution Management Interlocks Act (12 U.S.C.
3205) is amended—
(1) in subsection (a), by striking ‘‘for a period of, subject
to the requirements of subsection (c), 20 years after the date
of enactment of this title’’;
(2) in subsection (b), by striking the second sentence; and
(3) by striking subsection (c).
(c) REGULATIONS.—Section 209 of the Depository Institution
Management Interlocks Act (12 U.S.C. 3207) is amended—
(1) in subsection (a)—
(A) by striking ‘‘(a) IN GENERAL.—Rules and regulations’’ and inserting ‘‘Regulations’’;
(B) by inserting ‘‘, including regulations that permit
service by a management official that would otherwise
be prohibited by section 203 or section 204, if such service
would not result in a monopoly or substantial lessening
of competition,’’ after ‘‘title’’;
(C) in paragraph (4)—
(i) by striking ‘‘Federal Home Loan Bank Board’’
and inserting ‘‘Director of the Office of Thrift Supervision’’; and
(ii) by striking ‘‘Savings and Loan’’ and inserting
‘‘Deposit’’; and
(2) by striking subsections (b) and (c).
SEC.

2211.

ELIMINATION OF RECORDKEEPING
REQUIREMENTS FOR OFFICERS.

AND

REPORTING

(a) EMPLOYEE BENEFIT PLANS.—Section 22(h)(2) of the Federal
Reserve Act (12 U.S.C. 375b(2)) is amended—
(1) by redesignating subparagraphs (A) through (C) as
clauses (i) through (iii), respectively, and indenting appropriately;
(2) by striking ‘‘(2) PREFERENTIAL TERMS PROHIBITED.—
’’ and inserting the following:
‘‘(2) PREFERENTIAL TERMS PROHIBITED.—
‘‘(A) IN GENERAL.—’’; and
(3) by adding at the end the following new subparagraph:
‘‘(B) EXCEPTION.—Nothing in this paragraph shall prohibit any extension of credit made pursuant to a benefit
or compensation program—
‘‘(i) that is widely available to employees of the
member bank; and
‘‘(ii) that does not give preference to any officer,
director, or principal shareholder of the member bank,
or to any related interest of such person, over other
employees of the member bank.’’.
(b) EXCEPTION FOR EXTENSIONS OF CREDIT TO EXECUTIVE OFFICERS AND DIRECTORS OF AFFILIATES.—Section 22(h)(8)(B) of the
Federal Reserve Act (12 U.S.C. 375b(8)(B)) is amended to read
as follows:

110 STAT. 3009–411

PUBLIC LAW 104–208—SEPT. 30, 1996
‘‘(B) EXCEPTION.—The Board may, by regulation, make
exceptions to subparagraph (A) for any executive officer
or director of a subsidiary of a company that controls
the member bank if—
‘‘(i) the executive officer or director does not have
authority to participate, and does not participate, in
major policymaking functions of the member bank;
and
‘‘(ii) the assets of such subsidiary do not exceed
10 percent of the consolidated assets of a company
that controls the member bank and such subsidiary
(and is not controlled by any other company).’’.

SEC. 2212. REPAYMENT OF TREASURY LOAN.

Section 1108 of the Federal Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 3337) is amended
by adding at the end the following new subsection.—
‘‘(c) REPAYMENT OF TREASURY LOAN.—Not later than September
30, 1998, the Appraisal Subcommittee shall repay to the Secretary
of the Treasury the unpaid portion of the $5,000,000 paid to the
Appraisal Subcommittee pursuant to this section.’’.
SEC. 2213. BRANCH CLOSURES.

Section 42 of the Federal Deposit Insurance Act (12 U.S.C.
1831r–1) is amended by adding at the end the following new subsection:
‘‘(e) SCOPE OF APPLICATION.—This section shall not apply with
respect to—
‘‘(1) an automated teller machine;
‘‘(2) the relocation of a branch or consolidation of one or
more branches into another branch, if the relocation or consolidation—
‘‘(A) occurs within the immediate neighborhood; and
‘‘(B) does not substantially affect the nature of the
business or customers served; or
‘‘(3) a branch that is closed in connection with—
‘‘(A) an emergency acquisition under—
‘‘(i) section 11(n); or
‘‘(ii) subsection (f) or (k) of section 13; or
‘‘(B) any assistance provided by the Corporation under
section 13(c).’’.
SEC. 2214. FOREIGN BANKS.

(a) EXAMINATION OF BRANCHES AND AGENCIES BY BOARD.—
Section 7(c) of the International Banking Act of 1978 (12 U.S.C.
3105(c)) is amended—
(1) by striking ‘‘(c)’’ and inserting the following:
‘‘(c) FOREIGN BANK EXAMINATIONS AND REPORTING.—’’;
(2) in paragraph (1)(B), by adding at the end the following
new clause:
‘‘(iii) AVOIDANCE OF DUPLICATION.—In exercising
its authority under this paragraph, the Board shall
take all reasonable measures to reduce burden and
avoid unnecessary duplication of examinations.’’;
(3) by striking subparagraph (C) of paragraph (1) and
inserting the following:
‘‘(C) ON-SITE EXAMINATION.—Each Federal branch or
agency, and each State branch or agency, of a foreign

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–412

bank shall be subject to on-site examination by an appropriate Federal banking agency or State bank supervisor
as frequently as would a national bank or a State bank,
respectively, by the appropriate Federal banking agency.’’;
and
(4) in paragraph (1)(D), by inserting before the period at
the end the following: ‘‘, only to the same extent that fees
are collected by the Board for examination of any State member
bank’’.
(b) ESTABLISHMENT OF FOREIGN BANK OFFICES IN THE UNITED
STATES.—Section 7(d) of the International Banking Act of 1978
(12 U.S.C. 3105(d)) is amended—
(1) in paragraph (2), by striking ‘‘The Board’’ and inserting
‘‘Except as provided in paragraph (6), the Board’’;
(2) in paragraph (5), by striking ‘‘Consistent with the standards for approval in paragraph (2), the’’; and inserting ‘‘The’’;
and
(3) by adding at the end the following new paragraphs:
‘‘(6) EXCEPTION.—
‘‘(A) IN GENERAL.—If the Board is unable to find, under
paragraph (2), that a foreign bank is subject to comprehensive supervision or regulation on a consolidated basis by
the appropriate authorities in its home country, the Board
may nevertheless approve an application by such foreign
bank under paragraph (1) if—
‘‘(i) the appropriate authorities in the home country
of the foreign bank are actively working to establish
arrangements for the consolidated supervision of such
bank; and
‘‘(ii) all other factors are consistent with approval.
‘‘(B) OTHER CONSIDERATIONS.—In deciding whether to
use its discretion under subparagraph (A), the Board shall
also consider whether the foreign bank has adopted and
implements procedures to combat money laundering. The
Board may also take into account whether the home country of the foreign bank is developing a legal regime to
address money laundering or is participating in multilateral efforts to combat money laundering.
‘‘(C) ADDITIONAL CONDITIONS.—In approving an
application under this paragraph, the Board, after requesting and taking into consideration the views of the appropriate State bank supervisor or the Comptroller of the
Currency, as the case may be, may impose such conditions
or restrictions relating to the activities or business operations of the proposed branch, agency, or commercial lending company subsidiary, including restrictions on sources
of funding, as are considered appropriate. The Board shall
coordinate with the appropriate State bank supervisor or
the Comptroller of the Currency, as appropriate, in the
implementation of such conditions or restrictions.
‘‘(D) MODIFICATION OF CONDITIONS.—Any condition or
restriction imposed by the Board in connection with the
approval of an application under authority of this paragraph may be modified or withdrawn.
‘‘(7) TIME PERIOD FOR BOARD ACTION.—
‘‘(A) FINAL ACTION.—The Board shall take final action
on any application under paragraph (1) not later than

110 STAT. 3009–413

PUBLIC LAW 104–208—SEPT. 30, 1996

180 days after receipt of the application, except that the
Board may extend for an additional 180 days the period
within which to take final action on such application after
providing notice of, and the reasons for, the extension
to the applicant foreign bank and any appropriate State
bank supervisor or the Comptroller of the Currency, as
appropriate.
‘‘(B) FAILURE TO SUBMIT INFORMATION.—The Board
may deny any application if it does not receive information
requested from the applicant foreign bank or appropriate
authorities in the home country of the foreign bank in
sufficient time to permit the Board to evaluate such
information adequately within the time periods for final
action set forth in subparagraph (A).
‘‘(C) WAIVER.—A foreign bank may waive the
applicability of this paragraph with respect to any application under paragraph (1).’’.
(c) TERMINATION OF FOREIGN BANK OFFICES IN THE UNITED
STATES.—Section 7(e)(1)(A) of the International Banking Act of
1978 (12 U.S.C. 3105(e)(1)(A)) is amended—
(1) by inserting ‘‘(i)’’ after ‘‘(A)’’;
(2) by striking ‘‘or’’ at the end and inserting ‘‘and’’; and
(3) by adding at the end the following new clause:
‘‘(ii) the appropriate authorities in the home country
of the foreign bank are not making demonstrable progress
in establishing arrangements for the comprehensive supervision or regulation of such foreign bank on a consolidated
basis; or’’.
SEC. 2215. DISPOSITION OF FORECLOSED ASSETS.

Section 4(c)(2) of the Bank Holding Company Act of 1956 (12
U.S.C. 1843(c)(2)) is amended—
(1) by striking ‘‘for not more than one year at a time’’;
and
(2) by striking ‘‘but no such extensions shall extend beyond
a date five years’’ and inserting ‘‘and, in the case of a bank
holding company which has not disposed of such shares within
5 years after the date on which such shares were acquired,
the Board may, upon the application of such company, grant
additional exemptions if, in the judgment of the Board, such
extension would not be detrimental to the public interest and,
either the bank holding company has made a good faith attempt
to dispose of such shares during such 5-year period, or the
disposal of such shares during such 5-year period would have
been detrimental to the company, except that the aggregate
duration of such extensions shall not extend beyond 10 years’’.
SEC. 2216. EXEMPTION AUTHORITY FOR ANTITYING PROVISION.

(a) FEDERAL RESERVE BOARD AUTHORITY.—Section 106(b)(1)
of the Bank Holding Company Act Amendments of 1970 (12 U.S.C.
1972(1)) is amended in the last sentence, by inserting ‘‘and the
prohibitions of section 4(f)(9) and 4(h)(2) of the Bank Holding Company Act of 1956’’ after ‘‘prohibition’’.
(b) OTS AUTHORITY.—Section 5(q) of the Home Owners’ Loan
Act (12 U.S.C. 1464(q)) is amended by adding at the end the
following new paragraph:

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–414

‘‘(6) EXCEPTIONS.—The Director may, by regulation or
order, permit such exceptions to the prohibitions of this subsection as the Director considers will not be contrary to the
purposes of this subsection and which conform to exceptions
granted by the Board of Governors of the Federal Reserve
System pursuant to section 106(b) of the Bank Holding Company Act Amendments of 1970.’’.
SEC. 2217. FDIC APPROVAL OF NEW STATE BANK POWERS.

Section 24 of the Federal Deposit Insurance Act (12 U.S.C.
1831a) is amended—
(1) in subsection (a)—
(A) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and indenting appropriately;
(B) by striking ‘‘IN GENERAL.—’’ and inserting the following: ‘‘PERMISSIBLE ACTIVITIES.—
‘‘(1) IN GENERAL.—’’; and
(C) by adding at the end the following new paragraph:
‘‘(2) PROCESSING PERIOD.—
‘‘(A) IN GENERAL.—The Corporation shall make a determination under paragraph (1)(A) not later than 60 days
after receipt of a completed application that may be
required under this subsection.
‘‘(B) EXTENSION OF TIME PERIOD.—The Corporation may
extend the 60-day period referred to in subparagraph (A)
for not more than 30 additional days, and shall notify
the applicant of any such extension.’’; and
(2) in subsection (d), by adding at the end the following
new paragraph:
‘‘(3) PROCESSING PERIOD.—
‘‘(A) IN GENERAL.—The Corporation shall make a determination under paragraph (1)(A) not later than 60 days
after receipt of a completed application that may be
required under this subsection.
‘‘(B) EXTENSION OF TIME PERIOD.—The Corporation may
extend the 60-day period referred to in subparagraph (A)
for not more than 30 additional days, and shall notify
the applicant of any such extension.’’.
CHAPTER 2—ELIMINATING UNNECESSARY
REGULATORY BURDENS
SEC. 2221. SMALL BANK EXAMINATION CYCLE.

Section 10(d) of the Federal Deposit Insurance Act (12 U.S.C.
1820(d)) is amended—
(1) by redesignating the second paragraph designated as
paragraph (8) as paragraph (10), and by inserting that paragraph, as redesignated, immediately after paragraph (9); and
(2) in paragraph (10), as redesignated, by striking
‘‘$175,000,000’’ and inserting ‘‘$250,000,000’’.
SEC. 2222. REQUIRED REVIEW OF REGULATIONS.

(a) IN GENERAL.—Not less frequently than once every 10 years,
the Council and each appropriate Federal banking agency represented on the Council shall conduct a review of all regulations
prescribed by the Council or by any such appropriate Federal banking agency, respectively, in order to identify outdated or otherwise

12 USC 3311.

110 STAT. 3009–415

PUBLIC LAW 104–208—SEPT. 30, 1996

unnecessary regulatory requirements imposed on insured depository
institutions.
(b) PROCESS.—In conducting the review under subsection (a),
the Council or the appropriate Federal banking agency shall—
(1) categorize the regulations described in subsection (a)
by type (such as consumer regulations, safety and soundness
regulations, or such other designations as determined by the
Council, or the appropriate Federal banking agency); and
(2) at regular intervals, provide notice and solicit public
comment on a particular category or categories of regulations,
requesting commentators to identify areas of the regulations
that are outdated, unnecessary, or unduly burdensome.
(c) COMPLETE REVIEW.—The Council or the appropriate Federal
banking agency shall ensure that the notice and comment period
described in subsection (b)(2) is conducted with respect to all regulations described in subsection (a) not less frequently than once
every 10 years.
(d) REGULATORY RESPONSE.—The Council or the appropriate
Federal banking agency shall—
(1) publish in the Federal Register a summary of the comments received under this section, identifying significant issues
raised and providing comment on such issues; and
(2) eliminate unnecessary regulations to the extent that
such action is appropriate.
(e) REPORT TO CONGRESS.—Not later than 30 days after carrying out subsection (d)(1), the Council shall submit to the Congress
a report, which shall include—
(1) a summary of any significant issues raised by public
comments received by the Council and the appropriate Federal
banking agencies under this section and the relative merits
of such issues; and
(2) an analysis of whether the appropriate Federal banking
agency involved is able to address the regulatory burdens associated with such issues by regulation, or whether such burdens
must be addressed by legislative action.
SEC. 2223. REPEAL OF IDENTIFICATION OF NONBANK FINANCIAL
INSTITUTION CUSTOMERS.

Subchapter II of chapter 53 of title 31, United States Code,
is amended—
(1) by striking section 5327;
(2) in the chapter analysis, by striking the item relating
to section 5327; and
(3) in section 5321(a), by striking paragraph (7).
SEC. 2224. REPEAL OF CERTAIN REPORTING REQUIREMENTS.

12 USC 1833.

(a) FDIA.—Section 477 of the Federal Deposit Insurance Corporation Improvement Act of 1991 (12 U.S.C. 251) is repealed.
(b) FIRREA.—Section 918 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 1833 note) is
repealed.
(c) ILS.—Section 913 of the International Lending Supervision
Act of 1983 (12 U.S.C. 3912) is repealed.
SEC. 2225. INCREASE IN HOME MORTGAGE DISCLOSURE EXEMPTION
THRESHOLD.

(a) IN GENERAL.—Section 309 of the Home Mortgage Disclosure
Act of 1975 (12 U.S.C. 2808) is amended—

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110 STAT. 3009–416

(1) by striking ‘‘This title’’ and inserting ‘‘(a) IN GENERAL.—
This title’’;
(2) in the 3d sentence, by inserting ‘‘(as determined without
regard to the adjustment made by subsection (b))’’ before the
period; and
(2) by adding at the end the following new subsection:
‘‘(b) CPI ADJUSTMENTS.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), the dollar
amount applicable with respect to institutions described in
section 303(2)(A) under the 2d sentence of subsection (a) shall
be adjusted annually after December 31, 1996, by the annual
percentage increase in the Consumer Price Index for Urban
Wage Earners and Clerical Workers published by the Bureau
of Labor Statistics.
‘‘(2) 1-TIME ADJUSTMENT FOR PRIOR INFLATION.—The first
adjustment made under paragraph (1) after the date of the
enactment of the Economic Growth and Regulatory Paperwork
Reduction Act of 1996 shall be the percentage by which—
‘‘(A) the Consumer Price Index described in such paragraph for the calendar year 1996, exceeds
‘‘(B) such Consumer Price Index for the calendar year
1975.
‘‘(3) ROUNDING.—The dollar amount applicable under paragraph (1) for any calendar year shall be the amount determined
in accordance with subparagraphs (A) and (B) of paragraph
(2) and rounded to the nearest multiple of $1,000,000.’’.
(b) OPPORTUNITY TO REDUCE COMPLIANCE BURDEN.—Section
304 of the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2803)
is amended by adding at the end the following new subsection:
‘‘(m) OPPORTUNITY TO REDUCE COMPLIANCE BURDEN.—
‘‘(1) IN GENERAL.—
‘‘(A) SATISFACTION OF PUBLIC AVAILABILITY REQUIREMENTS.—A depository institution shall be deemed to have
satisfied the public availability requirements of subsection
(a) if the institution compiles the information required
under that subsection at the home office of the institution
and provides notice at the branch locations specified in
subsection (a) that such information is available from the
home office of the institution upon written request.
‘‘(B) PROVISION OF INFORMATION UPON REQUEST.—Not
later than 15 days after the receipt of a written request
for any information required to be compiled under subsection (a), the home office of the depository institution
receiving the request shall provide the information pertinent to the location of the branch in question to the person
requesting the information.
‘‘(2) FORM OF INFORMATION.—In complying with paragraph
(1), a depository institution shall, in the sole discretion of
the institution, provide the person requesting the information
with—
‘‘(A) a paper copy of the information requested; or
‘‘(B) if acceptable to the person, the information
through a form of electronic medium, such as a computer
disk.’’.

110 STAT. 3009–417

PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 2226. ELIMINATION OF STOCK LOAN REPORTING REQUIREMENT.

Section 7(j) of the Federal Deposit Insurance Act (12 U.S.C.
1817(j)) is amended—
(1) in paragraph (9)(A)—
(A) by striking ‘‘financial institution and any affiliate
of any financial institution’’ and inserting ‘‘foreign bank,
or any affiliate thereof,’’; and
(B) by striking ‘‘by the financial institution and such
institution’s affiliates’’ and inserting ‘‘by the foreign bank
or any affiliate thereof’’;
(2) in paragraph (9)(B)—
(A) by striking ‘‘paragraph—’’ and inserting ‘‘paragraph, the following definitions shall apply:’’;
(B) by striking clause (i) and inserting the following:
‘‘(i) FOREIGN BANK.—The terms ‘foreign bank’ and
‘affiliate’ have the same meanings as in section 1 of
the International Banking Act of 1978.’’; and
(C) in clause (iii), by striking ‘‘financial institution’’
and inserting ‘‘foreign bank or any affiliate thereof’’;
(3) in paragraph (9)(C)—
(A) by striking ‘‘financial institution or any of its affiliates’’ and inserting ‘‘foreign bank or any affiliate thereof’’;
and
(B) by striking ‘‘financial institution or its affiliates’’
and inserting ‘‘foreign bank or any affiliate thereof’’;
(4) in paragraph (9)(D)—
(A) in clause (i)—
(i) by striking ‘‘the financial institution and all
affiliates of the institution’’ and inserting ‘‘the foreign
bank and all affiliates thereof’’; and
(ii) by striking ‘‘financial institution or any such
affiliate’’ and inserting ‘‘foreign bank or affiliate
thereof’’;
(B) in clause (ii), by striking ‘‘financial institution and
any affiliate of such institution’’ and inserting ‘‘foreign bank
and any affiliate thereof’’; and
(C) in clause (iii), by striking ‘‘financial institution’’
and inserting ‘‘foreign bank or any affiliate thereof’’; and
(5) in paragraph (9)(E)—
(A) in clause (i)—
(i) by striking ‘‘a financial institution and the affiliates of such institution’’ and inserting ‘‘a foreign bank
or any affiliate thereof’’; and
(ii) by striking ‘‘institution or affiliate’’ each place
such term appears and inserting ‘‘foreign bank or any
affiliate thereof’’; and
(B) in clause (ii), by striking ‘‘financial institution and
any affiliate of such institution’’ and inserting ‘‘foreign bank
and any affiliate thereof’’.
12 USC 252.

SEC. 2227. CREDIT AVAILABILITY ASSESSMENT.

(a) STUDY.—
(1) IN GENERAL.—Not later than 12 months after the date
of enactment of this Act, and once every 60 months thereafter,
the Board, in consultation with the Director of the Office of
Thrift Supervision, the Comptroller of the Currency, the Board
of Directors of the Corporation, the Administrator of the

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–418

National Credit Union Administration, the Administrator of
the Small Business Administration, and the Secretary of Commerce, shall conduct a study and submit a report to the Congress detailing the extent of small business lending by all
creditors.
(2) CONTENTS OF STUDY.—The study required under paragraph (1) shall identify, to the extent practicable, those factors
which provide policymakers with insights into the small business credit market, including—
(A) the demand for small business credit, including
consideration of the impact of economic cycles on the levels
of such demand;
(B) the availability of credit to small businesses;
(C) the range of credit options available to small
businesses, such as those available from insured depository
institutions and other providers of credit;
(D) the types of credit products used to finance small
business operations, including the use of traditional loans,
leases, lines of credit, home equity loans, credit cards,
and other sources of financing;
(E) the credit needs of small businesses, including,
if appropriate, the extent to which such needs differ, based
upon product type, size of business, cash flow requirements,
characteristics of ownership or investors, or other aspects
of such business;
(F) the types of risks to creditors in providing credit
to small businesses; and
(G) such other factors as the Board deems appropriate.
(b) USE OF EXISTING DATA.—The studies required by this section shall not increase the regulatory or paperwork burden on
regulated financial institutions, other sources of small business
credit, or small businesses.
CHAPTER 3—REGULATORY MICROMANAGEMENT
RELIEF
SEC. 2241. NATIONAL BANK DIRECTORS.

Section 5146 of the Revised Statutes of the United States
(12 U.S.C. 72) is amended in the first sentence, by striking ‘‘except’’
and all that follows through the end of the sentence and inserting
the following: ‘‘except that the Comptroller may, in the discretion
of the Comptroller, waive the requirement of residency.’’.
SEC. 2242. PAPERWORK REDUCTION REVIEW.

Section 303(a) of the Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4803(a)) is amended—
(1) by redesignating paragraphs (2) and (3) as paragraphs
(3) and (4), respectively; and
(2) by inserting after paragraph (1) the following new paragraph:
‘‘(2) review the extent to which existing regulations require
insured depository institutions and insured credit unions to
produce unnecessary internal written policies and eliminate
such requirements, where appropriate;’’.

110 STAT. 3009–419

PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 2243. STATE BANK REPRESENTATION ON BOARD OF DIRECTORS
OF THE FDIC.

Section 2(a)(1)(C) of the Federal Deposit Insurance Act (12
U.S.C. 1812(a)(1)(C)) is amended by inserting before the period
‘‘, 1 of whom shall have State bank supervisory experience’’.
SEC. 2244. CONSULTATION AMONG EXAMINERS.

(a) IN GENERAL.—Section 10 of the Federal Deposit Insurance
Act (12 U.S.C. 1820) is amended by adding at the end the following
new subsection:
‘‘(j) CONSULTATION AMONG EXAMINERS.—
‘‘(1) IN GENERAL.—Each appropriate Federal banking
agency shall take such action as may be necessary to ensure
that examiners employed by the agency—
‘‘(A) consult on examination activities with respect to
any depository institution; and
‘‘(B) achieve an agreement and resolve any inconsistencies in the recommendations to be given to such institution as a consequence of any examinations.
‘‘(2) EXAMINER-IN-CHARGE.—Each appropriate Federal
banking agency shall consider appointing an examiner-incharge with respect to a depository institution to ensure consultation on examination activities among all of the examiners
of that agency involved in examinations of the institution.’’.
(b) COORDINATED AND UNIFIED EXAMINATION FLEXIBILITY.—Section 10(d)(6)(B) of the Federal Deposit Insurance Act (12 U.S.C.
1820(d)(6)(B)) is amended by inserting ‘‘or State bank supervisors’’
after ‘‘one of the Federal agencies’’.

Subtitle C—Regulatory Impact on Cost of
Credit and Credit Availability
SEC. 2301. AUDIT COSTS.

(a) AUDITOR ATTESTATIONS.—Section 36 of the Federal Deposit
Insurance Act (12 U.S.C. 1831m) is amended by striking subsection
(e) and inserting the following:
‘‘(e) [Repealed]’’.
(b) INDEPENDENT AUDIT COMMITTEES.—Section 36(g)(1) of the
Federal Deposit Insurance Act (12 U.S.C. 1831m(g)(1)) is amended—
(1) in subparagraph (A), by inserting ‘‘, except as provided
in subparagraph (D)’’ after ‘‘management of the institution’’;
and
(2) by adding at the end the following new subparagraph:
‘‘(D) EXEMPTION AUTHORITY.—
‘‘(i) IN GENERAL.—An appropriate Federal banking
agency may, by order or regulation, permit the
independent audit committee of an insured depository
institution to be made up of less than all, but no
fewer than a majority of, outside directors, if the
agency determines that the institution has encountered
hardships in retaining and recruiting a sufficient number of competent outside directors to serve on the
internal audit committee of the institution.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–420

‘‘(ii) FACTORS TO BE CONSIDERED.—In determining
whether an insured depository institution has encountered hardships referred to in clause (i), the appropriate Federal banking agency shall consider factors
such as the size of the institution, and whether the
institution has made a good faith effort to elect or
name additional competent outside directors to the
board of directors of the institution who may serve
on the internal audit committee.’’.
(c) PUBLIC AVAILABILITY.—Section 36(a)(3) of the Federal
Deposit Insurance Act (12 U.S.C. 1831m(a)(3)) is amended by adding
at the end the following: ‘‘Notwithstanding the preceding sentence,
the Corporation and the appropriate Federal banking agencies may
designate certain information as privileged and confidential and
not available to the public.’’.
SEC. 2302. INCENTIVES FOR SELF-TESTING.

(a) EQUAL CREDIT OPPORTUNITY.—
(1) IN GENERAL.—The Equal Credit Opportunity Act (15
U.S.C. 1691 et seq.) is amended by inserting after section
704 the following new section:
‘‘SEC. 704A. INCENTIVES FOR SELF-TESTING AND SELF-CORRECTION.

‘‘(a) PRIVILEGED INFORMATION.—
‘‘(1) CONDITIONS FOR PRIVILEGE.—A report or result of a
self-test (as that term is defined by regulations of the Board)
shall be considered to be privileged under paragraph (2) if
a creditor—
‘‘(A) conducts, or authorizes an independent third party
to conduct, a self-test of any aspect of a credit transaction
by a creditor, in order to determine the level or effectiveness
of compliance with this title by the creditor; and
‘‘(B) has identified any possible violation of this title
by the creditor and has taken, or is taking, appropriate
corrective action to address any such possible violation.
‘‘(2) PRIVILEGED SELF-TEST.—If a creditor meets the conditions specified in subparagraphs (A) and (B) of paragraph (1)
with respect to a self-test described in that paragraph, any
report or results of that self-test—
‘‘(A) shall be privileged; and
‘‘(B) may not be obtained or used by any applicant,
department, or agency in any—
‘‘(i) proceeding or civil action in which one or more
violations of this title are alleged; or
‘‘(ii) examination or investigation relating to
compliance with this title.
‘‘(b) RESULTS OF SELF-TESTING.—
‘‘(1) IN GENERAL.—No provision of this section may be
construed to prevent an applicant, department, or agency from
obtaining or using a report or results of any self-test in any
proceeding or civil action in which a violation of this title
is alleged, or in any examination or investigation of compliance
with this title if—
‘‘(A) the creditor or any person with lawful access to
the report or results—
‘‘(i) voluntarily releases or discloses all, or any
part of, the report or results to the applicant, department, or agency, or to the general public; or

15 USC 1691c–l.

110 STAT. 3009–421

15 USC 1691c–l
note.

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(ii) refers to or describes the report or results
as a defense to charges of violations of this title against
the creditor to whom the self-test relates; or
‘‘(B) the report or results are sought in conjunction
with an adjudication or admission of a violation of this
title for the sole purpose of determining an appropriate
penalty or remedy.
‘‘(2) DISCLOSURE FOR DETERMINATION OF PENALTY OR REMEDY.—Any report or results of a self-test that are disclosed
for the purpose specified in paragraph (1)(B)—
‘‘(A) shall be used only for the particular proceeding
in which the adjudication or admission referred to in paragraph (1)(B) is made; and
‘‘(B) may not be used in any other action or proceeding.
‘‘(c) ADJUDICATION.—An applicant, department, or agency that
challenges a privilege asserted under this section may seek a determination of the existence and application of that privilege in—
‘‘(1) a court of competent jurisdiction; or
‘‘(2) an administrative law proceeding with appropriate
jurisdiction.’’.
(2) REGULATIONS.—
(A) IN GENERAL.—Not later than 6 months after the
date of enactment of this Act, in consultation with the
Secretary of Housing and Urban Development and the
agencies referred to in section 704 of the Equal Credit
Opportunity Act, and after providing notice and an opportunity for public comment, the Board shall prescribe final
regulations to implement section 704A of the Equal Credit
Opportunity Act, as added by this section.
(B) SELF-TEST.—
(i) DEFINITION.—The regulations prescribed under
subparagraph (A) shall include a definition of the term
‘‘self-test’’ for purposes of section 704A of the Equal
Credit Opportunity Act, as added by this section.
(ii) REQUIREMENT FOR SELF-TEST.—The regulations
prescribed under subparagraph (A) shall specify that
a self-test shall be sufficiently extensive to constitute
a determination of the level and effectiveness of compliance by a creditor with the Equal Credit Opportunity
Act.
(iii) SUBSTANTIAL SIMILARITY TO CERTAIN FAIR
HOUSING ACT REGULATIONS.—The regulations prescribed under subparagraph (A) shall be substantially
similar to the regulations prescribed by the Secretary
of Housing and Urban Development to carry out section
814A(d) of the Fair Housing Act, as added by this
section.
(3) CLERICAL AMENDMENT.—The table of sections for title
VII of the Consumer Credit Protection Act is amended by
inserting after the item relating to section 704 the following
new item:
‘‘704A. Incentives for self-testing and self-correction.’’.

(b) FAIR HOUSING.—
(1) IN GENERAL.—The Fair Housing Act (42 U.S.C. 3601
et seq.) is amended by inserting after section 814 the following
new section:

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–422

‘‘SEC. 814A. INCENTIVES FOR SELF-TESTING AND SELF-CORRECTION.

‘‘(a) PRIVILEGED INFORMATION.—
‘‘(1) CONDITIONS FOR PRIVILEGE.—A report or result of a
self-test (as that term is defined by regulation of the Secretary)
shall be considered to be privileged under paragraph (2) if
any person—
‘‘(A) conducts, or authorizes an independent third party
to conduct, a self-test of any aspect of a residential real
estate related lending transaction of that person, or any
part of that transaction, in order to determine the level
or effectiveness of compliance with this title by that person;
and
‘‘(B) has identified any possible violation of this title
by that person and has taken, or is taking, appropriate
corrective action to address any such possible violation.
‘‘(2) PRIVILEGED SELF-TEST.—If a person meets the conditions specified in subparagraphs (A) and (B) of paragraph (1)
with respect to a self-test described in that paragraph, any
report or results of that self-test—
‘‘(A) shall be privileged; and
‘‘(B) may not be obtained or used by any applicant,
department, or agency in any—
‘‘(i) proceeding or civil action in which one or more
violations of this title are alleged; or
‘‘(ii) examination or investigation relating to
compliance with this title.
‘‘(b) RESULTS OF SELF-TESTING.—
‘‘(1) IN GENERAL.—No provision of this section may be
construed to prevent an aggrieved person, complainant, department, or agency from obtaining or using a report or results
of any self-test in any proceeding or civil action in which
a violation of this title is alleged, or in any examination or
investigation of compliance with this title if—
‘‘(A) the person to whom the self-test relates or any
person with lawful access to the report or the results—
‘‘(i) voluntarily releases or discloses all, or any
part of, the report or results to the aggrieved person,
complainant, department, or agency, or to the general
public; or
‘‘(ii) refers to or describes the report or results
as a defense to charges of violations of this title against
the person to whom the self-test relates; or
‘‘(B) the report or results are sought in conjunction
with an adjudication or admission of a violation of this
title for the sole purpose of determining an appropriate
penalty or remedy.
‘‘(2) DISCLOSURE FOR DETERMINATION OF PENALTY OR REMEDY.—Any report or results of a self-test that are disclosed
for the purpose specified in paragraph (1)(B)—
‘‘(A) shall be used only for the particular proceeding
in which the adjudication or admission referred to in paragraph (1)(B) is made; and
‘‘(B) may not be used in any other action or proceeding.
‘‘(c) ADJUDICATION.—An aggrieved person, complainant, department, or agency that challenges a privilege asserted under this
section may seek a determination of the existence and application
of that privilege in—

42 USC 3614–1.

110 STAT. 3009–423

42 USC 3614–1
note.

15 USC 1691c–l
note.

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(1) a court of competent jurisdiction; or
‘‘(2) an administrative law proceeding with appropriate
jurisdiction.’’.
(2) REGULATIONS.—
(A) IN GENERAL.—Not later than 6 months after the
date of enactment of this Act, in consultation with the
Board and after providing notice and an opportunity for
public comment, the Secretary of Housing and Urban
Development shall prescribe final regulations to implement
section 814A of the Fair Housing Act, as added by this
section.
(B) SELF-TEST.—
(i) DEFINITION.—The regulations prescribed by the
Secretary under subparagraph (A) shall include a definition of the term ‘‘self-test’’ for purposes of section
814A of the Fair Housing Act, as added by this section.
(ii) REQUIREMENT FOR SELF-TEST.—The regulations
prescribed by the Secretary under subparagraph (A)
shall specify that a self-test shall be sufficiently extensive to constitute a determination of the level and
effectiveness of the compliance by a person engaged
in residential real estate related lending activities with
the Fair Housing Act.
(iii) SUBSTANTIAL SIMILARITY TO CERTAIN EQUAL
CREDIT OPPORTUNITY ACT REGULATIONS.—The regulations prescribed under subparagraph (A) shall be
substantially similar to the regulations prescribed by
the Board to carry out section 704A of the Equal Credit
Opportunity Act, as added by this section.
(c) APPLICABILITY.—
(1) IN GENERAL.—Except as provided in paragraph (2), the
privilege provided for in section 704A of the Equal Credit
Opportunity Act or section 814A of the Fair Housing Act (as
those sections are added by this section) shall apply to a selftest (as that term is defined pursuant to the regulations prescribed under subsection (a)(2) or (b)(2) of this section, as appropriate) conducted before, on, or after the effective date of the
regulations prescribed under subsection (a)(2) or (b)(2), as
appropriate.
(2) EXCEPTION.—The privilege referred to in paragraph (1)
does not apply to such a self-test conducted before the effective
date of the regulations prescribed under subsection (a) or (b),
as appropriate, if—
(A) before that effective date, a complaint against the
creditor or person engaged in residential real estate related
lending activities (as the case may be) was—
(i) formally filed in any court of competent jurisdiction; or
(ii) the subject of an ongoing administrative law
proceeding;
(B) in the case of section 704A of the Equal Credit
Opportunity Act, the creditor has waived the privilege
pursuant to subsection (b)(1)(A)(i) of that section; or
(C) in the case of section 814A of the Fair Housing
Act, the person engaged in residential real estate related
lending activities has waived the privilege pursuant to
subsection (b)(1)(A)(i) of that section.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–424

SEC. 2303. QUALIFIED THRIFT INVESTMENT AMENDMENTS.

(a) CREDIT CARDS.—Section 5(b) of the Home Owners’ Loan
Act (12 U.S.C. 1464(b)) is amended—
(1) by striking paragraph (4); and
(2) by redesignating paragraph (5) as paragraph (4).
(b) LOANS OR INVESTMENTS WITHOUT PERCENTAGE OF ASSETS
LIMITATION.—Section 5(c)(1) of the Home Owners’ Loan Act (12
U.S.C. 1464(c)(1)) is amended by adding at the end the following
new subparagraphs:
‘‘(T) CREDIT CARD LOANS.—Loans made through credit
cards or credit card accounts.
‘‘(U) EDUCATIONAL LOANS.—Loans made for the payment of educational expenses.’’.
(c) COMMERCIAL AND OTHER LOANS.—Section 5(c)(2)(A) of the
Home Owners’ Loan Act (12 U.S.C. 1464(c)(2)(A)) is amended to
read as follows:
‘‘(A) COMMERCIAL AND OTHER LOANS.—Secured or
unsecured loans for commercial, corporate, business, or
agricultural purposes. The aggregate amount of loans made
under this subparagraph may not exceed 20 percent of
the total assets of the Federal savings association, and
amounts in excess of 10 percent of such total assets may
be used under this subparagraph only for small business
loans, as that term is defined by the Director.’’.
(d) LOANS OR INVESTMENTS LIMITED TO 5 PERCENT OF ASSETS.—
Section 5(c)(3) of the Home Owners’ Loan Act (12 U.S.C. 1464(c)(3))
is amended—
(1) by striking subparagraph (A); and
(2) by redesignating subparagraphs (B), (C), and (D) as
subparagraphs (A), (B), and (C), respectively.
(e) QUALIFIED THRIFT LENDER TEST.—Section 10(m)(1) of the
Home Owners’ Loan Act (12 U.S.C. 1467a(m)(1)) is amended—
(1) by redesignating subparagraph (B) as clause (ii);
(2) in subparagraph (A), by striking ‘‘(A) the savings’’ and
inserting ‘‘(B)(i) the savings’’; and
(3) by inserting after ‘‘if—’’ the following new subparagraph:
‘‘(A) the savings association qualifies as a domestic
building and loan association, as such term is defined in
section 7701(a)(19) of the Internal Revenue Code of 1986;
or’’.
(f) BRANCHING.—Section 5(r) of the Home Owners’ Loan Act
(12 U.S.C. 1464(r)) is amended—
(1) in paragraph (1)—
(A) in the first sentence—
(i) by inserting before the period ‘‘, or qualifies
as a qualified thrift lender, as determined under section 10(m) of this Act’’; and
(ii) by striking ‘‘(c)’’ and inserting ‘‘(C)’’; and
(B) in the second sentence, by inserting before the
period ‘‘or as a qualified thrift lender, as determined under
section 10(m) of this Act, as applicable’’; and
(2) in paragraph (2), by striking subparagraph (C) and
inserting the following:
‘‘(C) the law of the State where the branch is located,
or is to be located, would permit establishment of the branch
if the association was a savings association or savings bank

110 STAT. 3009–425

PUBLIC LAW 104–208—SEPT. 30, 1996

chartered by the State in which its home office is located;
or’’.
(g) DEFINITION.—Section 10(m)(4) of the Home Owners’ Loan
Act (12 U.S.C. 1467a(m)(4)) is amended—
(1) by striking ‘‘subsection—’’ and inserting ‘‘subsection,
the following definitions shall apply:’’;
(2) in subparagraph (C)—
(A) in clause (ii), by adding at the end the following
new subclause:
‘‘(VII) Loans for educational purposes, loans
to small businesses, and loans made through credit
cards or credit card accounts.’’; and
(B) in clause (iii), by striking subclause (VI) and inserting the following:
‘‘(VI) Loans for personal, family, or household
purposes (other than loans for personal, family,
or household purposes described in clause
(ii)(VII)).’’; and
(3) by adding at the end the following new subparagraphs:
‘‘(D) CREDIT CARD.—The Director shall issue such regulations as may be necessary to define the term ‘credit
card’.
‘‘(E) SMALL BUSINESS.—The Director shall issue such
regulations as may be necessary to define the term ‘small
business’.’’.
SEC. 2304. LIMITED PURPOSE BANKS.

(a) GROWTH CAP RELIEF.—Section 4(f)(3)(B) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(f)(3)(B)) is amended—
(1) in clause (ii), by adding ‘‘or’’ at the end;
(2) in clause (iii), by striking ‘‘; or’’ at the end and inserting
a period; and
(3) by striking clause (iv).
(b) LIMITED PURPOSE BANK EXCEPTION.—Section 2(c)(2)(F) of
the Bank Holding Company Act of 1956 (12 U.S.C. 1841(c)(2)(F))
is amended by inserting ‘‘, including an institution that accepts
collateral for extensions of credit by holding deposits under
$100,000, and by other means’’ after ‘‘An institution’’.
SEC. 2305. AMENDMENT TO FAIR DEBT COLLECTION PRACTICES ACT.

15 USC 1692e
note.

(a) IN GENERAL.—Section 807(11) of the Fair Debt Collection
Practices Act (15 U.S.C. 1692e(11)) is amended to read as follows:
‘‘(11) The failure to disclose in the initial written communication with the consumer and, in addition, if the initial
communication with the consumer is oral, in that initial oral
communication, that the debt collector is attempting to collect
a debt and that any information obtained will be used for
that purpose, and the failure to disclose in subsequent communications that the communication is from a debt collector, except
that this paragraph shall not apply to a formal pleading made
in connection with a legal action.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall take effect 90 days after the date of enactment of this Act
and shall apply to all communications made after that date of
enactment.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–426

SEC. 2306. INCREASE IN CERTAIN CREDIT UNION LOAN CEILINGS.

Section 107(5)(A) of the Federal Credit Union Act (12 U.S.C.
1757(5)(A)) is amended—
(1) in clause (iv), by striking ‘‘$10,000’’ and inserting
‘‘$20,000’’; and
(2) in clause (v), by striking ‘‘$10,000’’ and inserting
‘‘$20,000’’.
SEC. 2307. BANK INVESTMENTS IN EDGE ACT AND AGREEMENT CORPORATIONS.

The 10th undesignated paragraph of section 25A of the Federal
Reserve Act (12 U.S.C. 618) is amended by striking the last sentence
and inserting the following: ‘‘Any national bank may invest in
the stock of any corporation organized under this section. The
aggregate amount of stock held by any national bank in all corporations engaged in business of the kind described in this section
or section 25 shall not exceed an amount equal to 10 percent
of the capital and surplus of such bank unless the Board determines
that the investment of an additional amount by the bank would
not be unsafe or unsound and, in any case, shall not exceed an
amount equal to 20 percent of the capital and surplus of such
bank.’’.

Subtitle D—Consumer Credit
CHAPTER 1—CREDIT REPORTING REFORM
SEC. 2401. SHORT TITLE.

This chapter may be cited as the ‘‘Consumer Credit Reporting
Reform Act of 1996’’.
SEC. 2402. DEFINITIONS.

(a) ADVERSE ACTION.—Section 603 of the Fair Credit Reporting
Act (15 U.S.C. 1681a) is amended by adding at the end the following
new subsection:
‘‘(k) ADVERSE ACTION.—
‘‘(1) ACTIONS INCLUDED.—The term ‘adverse action’—
‘‘(A) has the same meaning as in section 701(d)(6)
of the Equal Credit Opportunity Act; and
‘‘(B) means—
‘‘(i) a denial or cancellation of, an increase in any
charge for, or a reduction or other adverse or unfavorable change in the terms of coverage or amount of,
any insurance, existing or applied for, in connection
with the underwriting of insurance;
‘‘(ii) a denial of employment or any other decision
for employment purposes that adversely affects any
current or prospective employee;
‘‘(iii) a denial or cancellation of, an increase in
any charge for, or any other adverse or unfavorable
change in the terms of, any license or benefit described
in section 604(a)(3)(D); and
‘‘(iv) an action taken or determination that is—
‘‘(I) made in connection with an application
that was made by, or a transaction that was initiated by, any consumer, or in connection with a

Consumer Credit
Reporting
Reform Act of
1996.
15 USC 1601
note.

110 STAT. 3009–427

PUBLIC LAW 104–208—SEPT. 30, 1996

review of an account under section 604(a)(3)(F)(ii);
and
‘‘(II) adverse to the interests of the consumer.
‘‘(2) APPLICABLE FINDINGS, DECISIONS, COMMENTARY, AND
ORDERS.—For purposes of any determination of whether an
action is an adverse action under paragraph (1)(A), all appropriate final findings, decisions, commentary, and orders issued
under section 701(d)(6) of the Equal Credit Opportunity Act
by the Board of Governors of the Federal Reserve System
or any court shall apply.’’.
(b) FIRM OFFER OF CREDIT OR INSURANCE.—Section 603 of
the Fair Credit Reporting Act (15 U.S.C. 1681a) (as amended by
subsection (a) of this section) is amended by adding at the end
the following new subsection:
‘‘(l) FIRM OFFER OF CREDIT OR INSURANCE.—The term ‘firm
offer of credit or insurance’ means any offer of credit or insurance
to a consumer that will be honored if the consumer is determined,
based on information in a consumer report on the consumer, to
meet the specific criteria used to select the consumer for the offer,
except that the offer may be further conditioned on one or more
of the following:
‘‘(1) The consumer being determined, based on information
in the consumer’s application for the credit or insurance, to
meet specific criteria bearing on credit worthiness or insurability, as applicable, that are established—
‘‘(A) before selection of the consumer for the offer;
and
‘‘(B) for the purpose of determining whether to extend
credit or insurance pursuant to the offer.
‘‘(2) Verification—
‘‘(A) that the consumer continues to meet the specific
criteria used to select the consumer for the offer, by using
information in a consumer report on the consumer, information in the consumer’s application for the credit or insurance, or other information bearing on the credit worthiness
or insurability of the consumer; or
‘‘(B) of the information in the consumer’s application
for the credit or insurance, to determine that the consumer
meets the specific criteria bearing on credit worthiness
or insurability.
‘‘(3) The consumer furnishing any collateral that is a
requirement for the extension of the credit or insurance that
was—
‘‘(A) established before selection of the consumer for
the offer of credit or insurance; and
‘‘(B) disclosed to the consumer in the offer of credit
or insurance.’’.
(c) CREDIT OR INSURANCE TRANSACTION THAT IS NOT INITIATED
BY THE CONSUMER.—Section 603 of the Fair Credit Reporting Act
(15 U.S.C. 1681a) (as amended by subsection (b) of this section)
is amended by adding at the end the following new subsection:
‘‘(m) CREDIT OR INSURANCE TRANSACTION THAT IS NOT INITIATED BY THE CONSUMER.—The term ‘credit or insurance transaction
that is not initiated by the consumer’ does not include the use
of a consumer report by a person with which the consumer has
an account or insurance policy, for purposes of—
‘‘(1) reviewing the account or insurance policy; or

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–428

‘‘(2) collecting the account.’’.
(d) STATE.—Section 603 of the Fair Credit Reporting Act (15
U.S.C. 1681a) (as amended by subsection (c) of this section) is
amended by adding at the end the following new subsection:
‘‘(n) STATE.—The term ‘State’ means any State, the Commonwealth of Puerto Rico, the District of Columbia, and any territory
or possession of the United States.’’.
(e) DEFINITION OF CONSUMER REPORT.—Section 603(d) of the
Fair Credit Reporting Act (15 U.S.C. 1681a(d)) is amended—
(1) by striking ‘‘(d) The term’’ and inserting the following:
‘‘(d) CONSUMER REPORT.—
‘‘(1) IN GENERAL.—The term’’;
(2) by striking ‘‘for (1) credit’’ and inserting the following:
‘‘for—
‘‘(A) credit’’;
(3) by striking ‘‘purposes, or (2)’’ and all that follows
through ‘‘section 604.’’ and inserting the following: ‘‘purposes;
‘‘(B) employment purposes; or
‘‘(C) any other purpose authorized under section 604.’’;
and
(4) by striking the second sentence and inserting the following:
‘‘(2) EXCLUSIONS.—The term ‘consumer report’ does not
include—
‘‘(A) any—
‘‘(i) report containing information solely as to
transactions or experiences between the consumer and
the person making the report;
‘‘(ii) communication of that information among persons related by common ownership or affiliated by
corporate control; or
‘‘(iii) any communication of other information
among persons related by common ownership or affiliated by corporate control, if it is clearly and conspicuously disclosed to the consumer that the information
may be communicated among such persons and the
consumer is given the opportunity, before the time
that the information is initially communicated, to
direct that such information not be communicated
among such persons;
‘‘(B) any authorization or approval of a specific extension of credit directly or indirectly by the issuer of a credit
card or similar device;
‘‘(C) any report in which a person who has been
requested by a third party to make a specific extension
of credit directly or indirectly to a consumer conveys his
or her decision with respect to such request, if the third
party advises the consumer of the name and address of
the person to whom the request was made, and such person
makes the disclosures to the consumer required under section 615; or
‘‘(D) a communication described in subsection (o).’’.
(f) EXCLUSION OF CERTAIN COMMUNICATIONS BY EMPLOYMENT
AGENCIES FROM DEFINITION OF CONSUMER REPORT.—Section 603
of the Fair Credit Reporting Act (15 U.S.C. 1681a) is amended
by adding at the end the following new subsection:

110 STAT. 3009–429

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(o) EXCLUDED COMMUNICATIONS.—A communication is
described in this subsection if it is a communication—
‘‘(1) that, but for subsection (d)(2)(E), would be an investigative consumer report;
‘‘(2) that is made to a prospective employer for the purpose
of—
‘‘(A) procuring an employee for the employer; or
‘‘(B) procuring an opportunity for a natural person
to work for the employer;
‘‘(3) that is made by a person who regularly performs
such procurement;
‘‘(4) that is not used by any person for any purpose other
than a purpose described in subparagraph (A) or (B) of paragraph (2); or
‘‘(5) with respect to which—
‘‘(A) the consumer who is the subject of the communication—
‘‘(i) consents orally or in writing to the nature
and scope of the communication, before the collection
of any information for the purpose of making the
communication;
‘‘(ii) consents orally or in writing to the making
of the communication to a prospective employer, before
the making of the communication; and
‘‘(iii) in the case of consent under clause (i) or
(ii) given orally, is provided written confirmation of
that consent by the person making the communication,
not later than 3 business days after the receipt of
the consent by that person;
‘‘(B) the person who makes the communication does
not, for the purpose of making the communication, make
any inquiry that if made by a prospective employer of
the consumer who is the subject of the communication
would violate any applicable Federal or State equal employment opportunity law or regulation; and
‘‘(C) the person who makes the communication—
‘‘(i) discloses in writing to the consumer who is
the subject of the communication, not later than 5
business days after receiving any request from the
consumer for such disclosure, the nature and substance
of all information in the consumer’s file at the time
of the request, except that the sources of any information that is acquired solely for use in making the
communication and is actually used for no other purpose, need not be disclosed other than under appropriate discovery procedures in any court of competent
jurisdiction in which an action is brought; and
‘‘(ii) notifies the consumer who is the subject of
the communication, in writing, of the consumer’s right
to request the information described in clause (i).’’.
(g) CONSUMER REPORTING AGENCY THAT COMPILES AND MAINTAINS FILES ON A NATIONWIDE BASIS.—Section 603 of the Fair
Credit Reporting Act (15 U.S.C. 1681a) (as amended by subsection
(f) of this section) is amended by adding at the end the following
new subsection:
‘‘(p) CONSUMER REPORTING AGENCY THAT COMPILES AND MAINTAINS FILES ON CONSUMERS ON A NATIONWIDE BASIS.—The term

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110 STAT. 3009–430

‘consumer reporting agency that compiles and maintains files on
consumers on a nationwide basis’ means a consumer reporting
agency that regularly engages in the practice of assembling or
evaluating, and maintaining, for the purpose of furnishing consumer
reports to third parties bearing on a consumer’s credit worthiness,
credit standing, or credit capacity, each of the following regarding
consumers residing nationwide:
‘‘(1) Public record information.
‘‘(2) Credit account information from persons who furnish
that information regularly and in the ordinary course of business.’’.
SEC. 2403. FURNISHING CONSUMER REPORTS; USE FOR EMPLOYMENT
PURPOSES.

(a) FURNISHING CONSUMER REPORTS FOR BUSINESS TRANSACTIONS.—Section 604 of the Fair Credit Reporting Act (15 U.S.C.
1681b) is amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before ‘‘A consumer
reporting agency’’; and
(2) in subsection (a)(3) (as so designated by paragraph
(1) of this subsection), by striking subparagraph (E) and inserting the following:
‘‘(E) intends to use the information, as a potential
investor or servicer, or current insurer, in connection with
a valuation of, or an assessment of the credit or prepayment
risks associated with, an existing credit obligation; or
‘‘(F) otherwise has a legitimate business need for the
information—
‘‘(i) in connection with a business transaction that
is initiated by the consumer; or
‘‘(ii) to review an account to determine whether
the consumer continues to meet the terms of the
account.’’.
(b) FURNISHING AND USING CONSUMER REPORTS FOR EMPLOYMENT PURPOSES.—Section 604 of the Fair Credit Reporting Act
(15 U.S.C. 1681b) is amended by adding at the end the following
new subsection:
‘‘(b) CONDITIONS FOR FURNISHING AND USING CONSUMER
REPORTS FOR EMPLOYMENT PURPOSES.—
‘‘(1) CERTIFICATION FROM USER.—A consumer reporting
agency may furnish a consumer report for employment purposes
only if—
‘‘(A) the person who obtains such report from the
agency certifies to the agency that—
‘‘(i) the person has complied with paragraph (2)
with respect to the consumer report, and the person
will comply with paragraph (3) with respect to the
consumer report if paragraph (3) becomes applicable;
and
‘‘(ii) information from the consumer report will
not be used in violation of any applicable Federal or
State equal employment opportunity law or regulation;
and
‘‘(B) the consumer reporting agency provides with the
report a summary of the consumer’s rights under this
title, as prescribed by the Federal Trade Commission under
section 609(c)(3).

110 STAT. 3009–431

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(2) DISCLOSURE TO CONSUMER.—A person may not procure
a consumer report, or cause a consumer report to be procured,
for employment purposes with respect to any consumer,
unless—
‘‘(A) a clear and conspicuous disclosure has been made
in writing to the consumer at any time before the report
is procured or caused to be procured, in a document that
consists solely of the disclosure, that a consumer report
may be obtained for employment purposes; and
‘‘(B) the consumer has authorized in writing the
procurement of the report by that person.
‘‘(3) CONDITIONS ON USE FOR ADVERSE ACTIONS.—In using
a consumer report for employment purposes, before taking any
adverse action based in whole or in part on the report, the
person intending to take such adverse action shall provide
to the consumer to whom the report relates—
‘‘(A) a copy of the report; and
‘‘(B) a description in writing of the rights of the
consumer under this title, as prescribed by the Federal
Trade Commission under section 609(c)(3).’’.
SEC.

2404.

USE OF CONSUMER REPORTS FOR PRESCREENING;
PROHIBITION ON UNAUTHORIZED OR UNCERTIFIED USE
OF INFORMATION.

(a) IN GENERAL.—Section 604 of the Fair Credit Reporting
Act (15 U.S.C. 1681b) (as amended by section 2403 of this chapter)
is amended—
(1) in subsection (a), by striking ‘‘A consumer reporting
agency’’ and inserting ‘‘Subject to subsection (c), any consumer
reporting agency’’; and
(2) by adding at the end the following new subsections:
‘‘(c) FURNISHING REPORTS IN CONNECTION WITH CREDIT OR
INSURANCE TRANSACTIONS THAT ARE NOT INITIATED BY THE
CONSUMER.—
‘‘(1) IN GENERAL.—A consumer reporting agency may furnish a consumer report relating to any consumer pursuant
to subparagraph (A) or (C) of subsection (a)(3) in connection
with any credit or insurance transaction that is not initiated
by the consumer only if—
‘‘(A) the consumer authorizes the agency to provide
such report to such person; or
‘‘(B)(i) the transaction consists of a firm offer of credit
or insurance;
‘‘(ii) the consumer reporting agency has complied with
subsection (e); and
‘‘(iii) there is not in effect an election by the consumer,
made in accordance with subsection (e), to have the
consumer’s name and address excluded from lists of names
provided by the agency pursuant to this paragraph.
‘‘(2) LIMITS ON INFORMATION RECEIVED UNDER PARAGRAPH
(1)(B).—A person may receive pursuant to paragraph (1)(B)
only—
‘‘(A) the name and address of a consumer;
‘‘(B) an identifier that is not unique to the consumer
and that is used by the person solely for the purpose
of verifying the identity of the consumer; and

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110 STAT. 3009–432

‘‘(C) other information pertaining to a consumer that
does not identify the relationship or experience of the
consumer with respect to a particular creditor or other
entity.
‘‘(3) INFORMATION REGARDING INQUIRIES.—Except as provided in section 609(a)(5), a consumer reporting agency shall
not furnish to any person a record of inquiries in connection
with a credit or insurance transaction that is not initiated
by a consumer.
‘‘(d) RESERVED
‘‘(e) ELECTION OF CONSUMER TO BE EXCLUDED FROM LISTS.—
‘‘(1) IN GENERAL.—A consumer may elect to have the
consumer’s name and address excluded from any list provided
by a consumer reporting agency under subsection (c)(1)(B) in
connection with a credit or insurance transaction that is not
initiated by the consumer, by notifying the agency in accordance
with paragraph (2) that the consumer does not consent to
any use of a consumer report relating to the consumer in
connection with any credit or insurance transaction that is
not initiated by the consumer.
‘‘(2) MANNER OF NOTIFICATION.—A consumer shall notify
a consumer reporting agency under paragraph (1)—
‘‘(A) through the notification system maintained by
the agency under paragraph (5); or
‘‘(B) by submitting to the agency a signed notice of
election form issued by the agency for purposes of this
subparagraph.
‘‘(3) RESPONSE OF AGENCY AFTER NOTIFICATION THROUGH
SYSTEM.—Upon receipt of notification of the election of a
consumer under paragraph (1) through the notification system
maintained by the agency under paragraph (5), a consumer
reporting agency shall—
‘‘(A) inform the consumer that the election is effective
only for the 2-year period following the election if the
consumer does not submit to the agency a signed notice
of election form issued by the agency for purposes of paragraph (2)(B); and
‘‘(B) provide to the consumer a notice of election form,
if requested by the consumer, not later than 5 business
days after receipt of the notification of the election through
the system established under paragraph (5), in the case
of a request made at the time the consumer provides
notification through the system.
‘‘(4) EFFECTIVENESS OF ELECTION.—An election of a
consumer under paragraph (1)—
‘‘(A) shall be effective with respect to a consumer
reporting agency beginning 5 business days after the date
on which the consumer notifies the agency in accordance
with paragraph (2);
‘‘(B) shall be effective with respect to a consumer
reporting agency—
‘‘(i) subject to subparagraph (C), during the 2-year
period beginning 5 business days after the date on
which the consumer notifies the agency of the election,
in the case of an election for which a consumer notifies
the agency only in accordance with paragraph (2)(A);
or

110 STAT. 3009–433

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‘‘(ii) until the consumer notifies the agency under
subparagraph (C), in the case of an election for which
a consumer notifies the agency in accordance with
paragraph (2)(B);
‘‘(C) shall not be effective after the date on which
the consumer notifies the agency, through the notification
system established by the agency under paragraph (5),
that the election is no longer effective; and
‘‘(D) shall be effective with respect to each affiliate
of the agency.
‘‘(5) NOTIFICATION SYSTEM.—
‘‘(A) IN GENERAL.—Each consumer reporting agency
that, under subsection (c)(1)(B), furnishes a consumer
report in connection with a credit or insurance transaction
that is not initiated by a consumer, shall—
‘‘(i) establish and maintain a notification system,
including a toll-free telephone number, which permits
any consumer whose consumer report is maintained
by the agency to notify the agency, with appropriate
identification, of the consumer’s election to have the
consumer’s name and address excluded from any such
list of names and addresses provided by the agency
for such a transaction; and
‘‘(ii) publish by not later than 365 days after the
date of enactment of the Consumer Credit Reporting
Reform Act of 1996, and not less than annually thereafter, in a publication of general circulation in the
area served by the agency—
‘‘(I) a notification that information in consumer
files maintained by the agency may be used in
connection with such transactions; and
‘‘(II) the address and toll-free telephone number for consumers to use to notify the agency of
the consumer’s election under clause (i).
‘‘(B) ESTABLISHMENT AND MAINTENANCE AS COMPLIANCE.—Establishment and maintenance of a notification
system (including a toll-free telephone number) and
publication by a consumer reporting agency on the agency’s
own behalf and on behalf of any of its affiliates in accordance with this paragraph is deemed to be compliance with
this paragraph by each of those affiliates.
‘‘(6) NOTIFICATION SYSTEM BY AGENCIES THAT OPERATE
NATIONWIDE.—Each consumer reporting agency that compiles
and maintains files on consumers on a nationwide basis shall
establish and maintain a notification system for purposes of
paragraph (5) jointly with other such consumer reporting agencies.’’.
(b) USE OF INFORMATION OBTAINED FROM REPORTS.—Section
604 of the Fair Credit Reporting Act (15 U.S.C. 1681b) (as amended
by subsection (a) of this section) is amended by adding at the
end the following new subsection:
‘‘(f) CERTAIN USE OR OBTAINING OF INFORMATION PROHIBITED.—
A person shall not use or obtain a consumer report for any purpose
unless—
‘‘(1) the consumer report is obtained for a purpose for
which the consumer report is authorized to be furnished under
this section; and

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110 STAT. 3009–434

‘‘(2) the purpose is certified in accordance with section
607 by a prospective user of the report through a general
or specific certification.’’.
(c) FTC GUIDELINES REGARDING PRESCREENING FOR INSURANCE
TRANSACTIONS.—The Federal Trade Commission may issue such
guidelines as it deems necessary with respect to the use of consumer
reports in connection with insurance transactions that are not initiated by the consumer pursuant to section 604(c) of the Fair Credit
Reporting Act, as added by subsection (a) of this section.
SEC. 2405. CONSUMER CONSENT REQUIRED TO FURNISH CONSUMER
REPORT CONTAINING MEDICAL INFORMATION.

Section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b)
is amended by adding at the end the following new subsection:
‘‘(g) FURNISHING REPORTS CONTAINING MEDICAL INFORMATION.—A consumer reporting agency shall not furnish for employment purposes, or in connection with a credit or insurance transaction or a direct marketing transaction, a consumer report that
contains medical information about a consumer, unless the
consumer consents to the furnishing of the report.’’.
SEC. 2406. OBSOLETE INFORMATION AND INFORMATION CONTAINED
IN CONSUMER REPORTS.

(a) AMENDMENT TO LARGE-DOLLAR EXCEPTION.—Section 605
of the Fair Credit Reporting Act (15 U.S.C. 1681c) is amended—
(1) by inserting ‘‘INFORMATION EXCLUDED FROM CONSUMER
REPORTS.—’’ after ‘‘(a)’’;
(2) in subsection (b)—
(A) in paragraph (1), by striking ‘‘$50,000’’ and inserting ‘‘$150,000’’;
(B) in paragraph (2), by striking ‘‘$50,000’’ and inserting ‘‘$150,000’’; and
(C) in paragraph (3), by striking ‘‘$20,000’’ and inserting ‘‘$75,000’’.
(b) CLARIFICATION OF REPORTING PERIOD.—Section 605 of the
Fair Credit Reporting Act (15 U.S.C. 1681c) (as amended by subsection (a) of this section) is amended by adding at the end the
following new subsection:
‘‘(c) RUNNING OF REPORTING PERIOD.—
‘‘(1) IN GENERAL.—The 7-year period referred to in paragraphs (4) and (6) of subsection (a) shall begin, with respect
to any delinquent account that is placed for collection
(internally or by referral to a third party, whichever is earlier),
charged to profit and loss, or subjected to any similar action,
upon the expiration of the 180-day period beginning on the
date of the commencement of the delinquency which immediately preceded the collection activity, charge to profit and
loss, or similar action.
‘‘(2) EFFECTIVE DATE.—Paragraph (1) shall apply only to
items of information added to the file of a consumer on or
after the date that is 455 days after the date of enactment
of the Consumer Credit Reporting Reform Act of 1996.’’.
(c) ADDITIONAL INFORMATION ON BANKRUPTCY FILINGS
REQUIRED.—Section 605 of the Fair Credit Reporting Act (15 U.S.C.
1681c) is amended by adding at the end the following new subsection:
‘‘(d) INFORMATION REQUIRED TO BE DISCLOSED.—Any consumer
reporting agency that furnishes a consumer report that contains

15 USC 1681b
note.

110 STAT. 3009–435

PUBLIC LAW 104–208—SEPT. 30, 1996

information regarding any case involving the consumer that arises
under title 11, United States Code, shall include in the report
an identification of the chapter of such title 11 under which such
case arises if provided by the source of the information. If any
case arising or filed under title 11, United States Code, is withdrawn
by the consumer before a final judgment, the consumer reporting
agency shall include in the report that such case or filing was
withdrawn upon receipt of documentation certifying such withdrawal.’’.
(d) INDICATION OF CLOSURE OF ACCOUNT; INDICATION OF DISPUTE BY CONSUMER.—Section 605 of the Fair Credit Reporting
Act (15 U.S.C. 1681c) is amended by adding at the end the following
new subsections:
‘‘(e) INDICATION OF CLOSURE OF ACCOUNT BY CONSUMER.—
If a consumer reporting agency is notified pursuant to section
623(a)(4) that a credit account of a consumer was voluntarily closed
by the consumer, the agency shall indicate that fact in any consumer
report that includes information related to the account.
‘‘(f) INDICATION OF DISPUTE BY CONSUMER.—If a consumer
reporting agency is notified pursuant to section 623(a)(3) that
information regarding a consumer who was furnished to the agency
is disputed by the consumer, the agency shall indicate that fact
in each consumer report that includes the disputed information.’’.
(e) CONFORMING AMENDMENTS.—
(1) Section 605 of the Fair Credit Reporting Act (15 U.S.C.
1681c) is amended in the section heading, by striking ‘‘OBSOLETE INFORMATION’’ and inserting ‘‘REQUIREMENTS
RELATING
TO
INFORMATION
CONTAINED
IN
CONSUMER REPORTS’’.
(2) The table of sections for the Fair Credit Reporting
Act (15 U.S.C. 1681a et seq.) is amended by striking the item
relating to section 605 and inserting the following:
‘‘605. Requirements relating to information contained in consumer reports.’’.
SEC. 2407. COMPLIANCE PROCEDURES.

(a) DISCLOSURE OF CONSUMER REPORTS BY USERS.—Section
607 of the Fair Credit Reporting Act (15 U.S.C. 1681e) is amended
by adding at the end the following new subsection:
‘‘(c) DISCLOSURE OF CONSUMER REPORTS BY USERS ALLOWED.—
A consumer reporting agency may not prohibit a user of a consumer
report furnished by the agency on a consumer from disclosing
the contents of the report to the consumer, if adverse action against
the consumer has been taken by the user based in whole or in
part on the report.’’.
(b) NOTICE TO USERS AND PROVIDERS OF INFORMATION TO
ENSURE COMPLIANCE.—Section 607 of the Fair Credit Reporting
Act (15 U.S.C. 1681e) is amended by adding after subsection (c)
(as added by subsection (a) of this section) the following new subsection:
‘‘(d) NOTICE TO USERS AND FURNISHERS OF INFORMATION.—
‘‘(1) NOTICE REQUIREMENT.—A consumer reporting agency
shall provide to any person—
‘‘(A) who regularly and in the ordinary course of business furnishes information to the agency with respect to
any consumer; or

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110 STAT. 3009–436

‘‘(B) to whom a consumer report is provided by the
agency;
a notice of such person’s responsibilities under this title.
‘‘(2) CONTENT OF NOTICE.—The Federal Trade Commission
shall prescribe the content of notices under paragraph (1),
and a consumer reporting agency shall be in compliance with
this subsection if it provides a notice under paragraph (1)
that is substantially similar to the Federal Trade Commission
prescription under this paragraph.’’.
(c) RECORD OF IDENTITY OF USERS AND PURPOSES CERTIFIED
BY USERS OF REPORTS.—Section 607 of the Fair Credit Reporting
Act (15 U.S.C. 1681e) is amended by adding after subsection (d)
(as added by subsection (b) of this section) the following new subsection:
‘‘(e) PROCUREMENT OF CONSUMER REPORT FOR RESALE.—
‘‘(1) DISCLOSURE.—A person may not procure a consumer
report for purposes of reselling the report (or any information
in the report) unless the person discloses to the consumer
reporting agency that originally furnishes the report—
‘‘(A) the identity of the end-user of the report (or
information); and
‘‘(B) each permissible purpose under section 604 for
which the report is furnished to the end-user of the report
(or information).
‘‘(2) RESPONSIBILITIES OF PROCURERS FOR RESALE.—A person who procures a consumer report for purposes of reselling
the report (or any information in the report) shall—
‘‘(A) establish and comply with reasonable procedures
designed to ensure that the report (or information) is resold
by the person only for a purpose for which the report
may be furnished under section 604, including by requiring
that each person to which the report (or information) is
resold and that resells or provides the report (or information) to any other person—
‘‘(i) identifies each end user of the resold report
(or information);
‘‘(ii) certifies each purpose for which the report
(or information) will be used; and
‘‘(iii) certifies that the report (or information) will
be used for no other purpose; and
‘‘(B) before reselling the report, make reasonable efforts
to verify the identifications and certifications made under
subparagraph (A).’’.
SEC. 2408. CONSUMER DISCLOSURES.

(a) ALL INFORMATION IN CONSUMER’S FILE REQUIRED TO BE
DISCLOSED.—Section 609(a)(1) of the Fair Credit Reporting Act
(15 U.S.C. 1681g(a)(1)) is amended to read as follows:
‘‘(1) All information in the consumer’s file at the time
of the request, except that nothing in this paragraph shall
be construed to require a consumer reporting agency to disclose
to a consumer any information concerning credit scores or any
other risk scores or predictors relating to the consumer.’’.
(b) MORE INFORMATION CONCERNING RECIPIENTS OF REPORTS
REQUIRED.—Section 609(a)(3) of the Fair Credit Reporting Act (15
U.S.C. 1681g(a)) is amended to read as follows:

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‘‘(3)(A) Identification of each person (including each enduser identified under section 607(e)(1)) that procured a
consumer report—
‘‘(i) for employment purposes, during the 2-year period
preceding the date on which the request is made; or
‘‘(ii) for any other purpose, during the 1-year period
preceding the date on which the request is made.
‘‘(B) An identification of a person under subparagraph (A)
shall include—
‘‘(i) the name of the person or, if applicable, the trade
name (written in full) under which such person conducts
business; and
‘‘(ii) upon request of the consumer, the address and
telephone number of the person.’’.
(c) INFORMATION REGARDING INQUIRIES.—Section 609(a) of the
Fair Credit Reporting Act (15 U.S.C. 1681g(a)) is amended by
adding at the end the following new paragraph:
‘‘(5) A record of all inquiries received by the agency during
the 1-year period preceding the request that identified the
consumer in connection with a credit or insurance transaction
that was not initiated by the consumer.’’.
(d) SUMMARY OF RIGHTS REQUIRED TO BE INCLUDED WITH
DISCLOSURE.—
(1) IN GENERAL.—Section 609 of the Fair Credit Reporting
Act (15 U.S.C. 1681g) is amended by adding at the end the
following new subsection:
‘‘(c) SUMMARY OF RIGHTS REQUIRED TO BE INCLUDED WITH
DISCLOSURE.—
‘‘(1) SUMMARY OF RIGHTS.—A consumer reporting agency
shall provide to a consumer, with each written disclosure by
the agency to the consumer under this section—
‘‘(A) a written summary of all of the rights that the
consumer has under this title; and
‘‘(B) in the case of a consumer reporting agency that
compiles and maintains files on consumers on a nationwide
basis, a toll-free telephone number established by the
agency, at which personnel are accessible to consumers
during normal business hours.
‘‘(2) SPECIFIC ITEMS REQUIRED TO BE INCLUDED.—The summary of rights required under paragraph (1) shall include—
‘‘(A) a brief description of this title and all rights of
consumers under this title;
‘‘(B) an explanation of how the consumer may exercise
the rights of the consumer under this title;
‘‘(C) a list of all Federal agencies responsible for enforcing any provision of this title and the address and any
appropriate phone number of each such agency, in a form
that will assist the consumer in selecting the appropriate
agency;
‘‘(D) a statement that the consumer may have additional rights under State law and that the consumer may
wish to contact a State or local consumer protection agency
or a State attorney general to learn of those rights; and
‘‘(E) a statement that a consumer reporting agency
is not required to remove accurate derogatory information
from a consumer’s file, unless the information is outdated
under section 605 or cannot be verified.

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110 STAT. 3009–438

‘‘(3) FORM OF SUMMARY OF RIGHTS.—For purposes of this
subsection and any disclosure by a consumer reporting agency
required under this title with respect to consumers’ rights,
the Federal Trade Commission (after consultation with each
Federal agency referred to in section 621(b)) shall prescribe
the form and content of any such disclosure of the rights
of consumers required under this title. A consumer reporting
agency shall be in compliance with this subsection if it provides
disclosures under paragraph (1) that are substantially similar
to the Federal Trade Commission prescription under this paragraph.
‘‘(4) EFFECTIVENESS.—No disclosures shall be required
under this subsection until the date on which the Federal
Trade Commission prescribes the form and content of such
disclosures under paragraph (3).’’.
(2) TECHNICAL AMENDMENT.—Section 606(a)(1)(B) of the
Fair Credit Reporting Act (15 U.S.C. 1681d(a)(1)(B)) is amended
by inserting ‘‘and the written summary of the rights of the
consumer prepared pursuant to section 609(c)’’ before the semicolon.
(e) FORM OF DISCLOSURES.—
(1) IN GENERAL.—Subsections (a) and (b) of section 610
of the Fair Credit Reporting Act (15 U.S.C. 1681h) are amended
to read as follows:
‘‘(a) IN GENERAL.—
‘‘(1) PROPER IDENTIFICATION.—A consumer reporting agency
shall require, as a condition of making the disclosures required
under section 609, that the consumer furnish proper identification.
‘‘(2) DISCLOSURE IN WRITING.—Except as provided in subsection (b), the disclosures required to be made under section
609 shall be provided under that section in writing.
‘‘(b) OTHER FORMS OF DISCLOSURE.—
‘‘(1) IN GENERAL.—If authorized by a consumer, a consumer
reporting agency may make the disclosures required under
609—
‘‘(A) other than in writing; and
‘‘(B) in such form as may be—
‘‘(i) specified by the consumer in accordance with
paragraph (2); and
‘‘(ii) available from the agency.
‘‘(2) FORM.—A consumer may specify pursuant to paragraph
(1) that disclosures under section 609 shall be made—
‘‘(A) in person, upon the appearance of the consumer
at the place of business of the consumer reporting agency
where disclosures are regularly provided, during normal
business hours, and on reasonable notice;
‘‘(B) by telephone, if the consumer has made a written
request for disclosure by telephone;
‘‘(C) by electronic means, if available from the agency;
or
‘‘(D) by any other reasonable means that is available
from the agency.’’.
(2) SIMPLIFIED DISCLOSURE.—Not later than 90 days after
the date of enactment of this Act, each consumer reporting
agency shall develop a form on which such consumer reporting
agency shall make the disclosures required under section 609(a)

15 USC 1681g
note.

110 STAT. 3009–439

15 USC 1681g
note.

15 USC 1681g.

15 USC 1681h.

PUBLIC LAW 104–208—SEPT. 30, 1996

of the Fair Credit Reporting Act, for the purpose of maximizing
the comprehensibility and standardization of such disclosures.
(3) GOALS.—The Federal Trade Commission shall take
appropriate action to assure that the goals of comprehensibility
and standardization are achieved in accordance with paragraph
(2).
(4) DEFAMATION.—Section 610(e) of the Fair Credit Reporting Act (15 U.S.C. 1681h(e)) is amended by inserting ‘‘or based
on information disclosed by a user of a consumer report to
or for a consumer against whom the user has taken adverse
action, based in whole or in part on the report’’ before ‘‘except’’.
(5) CONFORMING AMENDMENTS.—The Fair Credit Reporting
Act (15 U.S.C. 1681 et seq.) is amended—
(A) in section 609(a), in the matter preceding paragraph (1), by striking ‘‘and proper identification of any
consumer’’ and inserting ‘‘, and subject to section 610(a)(1)’’;
(B) in section 610, in the section heading, by inserting
‘‘AND FORM’’ after ‘‘CONDITIONS’’; and
(C) in the table of sections at the beginning of that
Act, in the item relating to section 610, by inserting ‘‘and
form’’ after ‘‘conditions’’.
SEC. 2409. PROCEDURES IN CASE OF THE DISPUTED ACCURACY OF
ANY INFORMATION IN A CONSUMER’S FILE.

(a) IN GENERAL.—Section 611(a) of the Fair Credit Reporting
Act (15 U.S.C. 1681i(a)) is amended to read as follows:
‘‘(a) REINVESTIGATIONS OF DISPUTED INFORMATION.—
‘‘(1) REINVESTIGATION REQUIRED.—
‘‘(A) IN GENERAL.—If the completeness or accuracy of
any item of information contained in a consumer’s file
at a consumer reporting agency is disputed by the consumer
and the consumer notifies the agency directly of such dispute, the agency shall reinvestigate free of charge and
record the current status of the disputed information, or
delete the item from the file in accordance with paragraph
(5), before the end of the 30-day period beginning on the
date on which the agency receives the notice of the dispute
from the consumer.
‘‘(B) EXTENSION OF PERIOD TO REINVESTIGATE.—Except
as provided in subparagraph (C), the 30-day period
described in subparagraph (A) may be extended for not
more than 15 additional days if the consumer reporting
agency receives information from the consumer during that
30-day period that is relevant to the reinvestigation.
‘‘(C) LIMITATIONS ON EXTENSION OF PERIOD TO REINVESTIGATE.—Subparagraph (B) shall not apply to any reinvestigation in which, during the 30-day period described in
subparagraph (A), the information that is the subject of
the reinvestigation is found to be inaccurate or incomplete
or the consumer reporting agency determines that the
information cannot be verified.
‘‘(2) PROMPT NOTICE OF DISPUTE TO FURNISHER OF INFORMATION.—
‘‘(A) IN GENERAL.—Before the expiration of the 5-business-day period beginning on the date on which a consumer
reporting agency receives notice of a dispute from any
consumer in accordance with paragraph (1), the agency

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110 STAT. 3009–440

shall provide notification of the dispute to any person who
provided any item of information in dispute, at the address
and in the manner established with the person. The notice
shall include all relevant information regarding the dispute
that the agency has received from the consumer.
‘‘(B) PROVISION OF OTHER INFORMATION FROM
CONSUMER.—The consumer reporting agency shall promptly
provide to the person who provided the information in
dispute all relevant information regarding the dispute that
is received by the agency from the consumer after the
period referred to in subparagraph (A) and before the end
of the period referred to in paragraph (1)(A).
‘‘(3) DETERMINATION THAT DISPUTE IS FRIVOLOUS OR IRRELEVANT.—
‘‘(A) IN GENERAL.—Notwithstanding paragraph (1), a
consumer reporting agency may terminate a reinvestigation
of information disputed by a consumer under that paragraph if the agency reasonably determines that the dispute
by the consumer is frivolous or irrelevant, including by
reason of a failure by a consumer to provide sufficient
information to investigate the disputed information.
‘‘(B) NOTICE OF DETERMINATION.—Upon making any
determination in accordance with subparagraph (A) that
a dispute is frivolous or irrelevant, a consumer reporting
agency shall notify the consumer of such determination
not later than 5 business days after making such determination, by mail or, if authorized by the consumer for
that purpose, by any other means available to the agency.
‘‘(C) CONTENTS OF NOTICE.—A notice under subparagraph (B) shall include—
‘‘(i) the reasons for the determination under
subparagraph (A); and
‘‘(ii) identification of any information required to
investigate the disputed information, which may consist of a standardized form describing the general
nature of such information.
‘‘(4) CONSIDERATION OF CONSUMER INFORMATION.—In
conducting any reinvestigation under paragraph (1) with
respect to disputed information in the file of any consumer,
the consumer reporting agency shall review and consider all
relevant information submitted by the consumer in the period
described in paragraph (1)(A) with respect to such disputed
information.
‘‘(5) TREATMENT OF INACCURATE OR UNVERIFIABLE INFORMATION.—
‘‘(A) IN GENERAL.—If, after any reinvestigation under
paragraph (1) of any information disputed by a consumer,
an item of the information is found to be inaccurate or
incomplete or cannot be verified, the consumer reporting
agency shall promptly delete that item of information from
the consumer’s file or modify that item of information,
as appropriate, based on the results of the reinvestigation.
‘‘(B) REQUIREMENTS RELATING TO REINSERTION OF PREVIOUSLY DELETED MATERIAL.—
‘‘(i) CERTIFICATION OF ACCURACY OF INFORMATION.—If any information is deleted from a consumer’s
file pursuant to subparagraph (A), the information may

110 STAT. 3009–441

PUBLIC LAW 104–208—SEPT. 30, 1996
not be reinserted in the file by the consumer reporting
agency unless the person who furnishes the information certifies that the information is complete and
accurate.
‘‘(ii) NOTICE TO CONSUMER.—If any information
that has been deleted from a consumer’s file pursuant
to subparagraph (A) is reinserted in the file, the
consumer reporting agency shall notify the consumer
of the reinsertion in writing not later than 5 business
days after the reinsertion or, if authorized by the
consumer for that purpose, by any other means available to the agency.
‘‘(iii) ADDITIONAL INFORMATION.—As part of, or in
addition to, the notice under clause (ii), a consumer
reporting agency shall provide to a consumer in writing
not later than 5 business days after the date of the
reinsertion—
‘‘(I) a statement that the disputed information
has been reinserted;
‘‘(II) the business name and address of any
furnisher of information contacted and the telephone number of such furnisher, if reasonably
available, or of any furnisher of information that
contacted the consumer reporting agency, in
connection with the reinsertion of such information; and
‘‘(III) a notice that the consumer has the right
to add a statement to the consumer’s file disputing
the accuracy or completeness of the disputed
information.
‘‘(C) PROCEDURES TO PREVENT REAPPEARANCE.—A
consumer reporting agency shall maintain reasonable
procedures designed to prevent the reappearance in a
consumer’s file, and in consumer reports on the consumer,
of information that is deleted pursuant to this paragraph
(other than information that is reinserted in accordance
with subparagraph (B)(i)).
‘‘(D) AUTOMATED REINVESTIGATION SYSTEM.—Any
consumer reporting agency that compiles and maintains
files on consumers on a nationwide basis shall implement
an automated system through which furnishers of information to that consumer reporting agency may report the
results of a reinvestigation that finds incomplete or inaccurate information in a consumer’s file to other such
consumer reporting agencies.
‘‘(6) NOTICE OF RESULTS OF REINVESTIGATION.—
‘‘(A) IN GENERAL.—A consumer reporting agency shall
provide written notice to a consumer of the results of
a reinvestigation under this subsection not later than 5
business days after the completion of the reinvestigation,
by mail or, if authorized by the consumer for that purpose,
by other means available to the agency.
‘‘(B) CONTENTS.—As part of, or in addition to, the notice
under subparagraph (A), a consumer reporting agency shall
provide to a consumer in writing before the expiration
of the 5-day period referred to in subparagraph (A)—

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110 STAT. 3009–442

‘‘(i) a statement that the reinvestigation is completed;
‘‘(ii) a consumer report that is based upon the
consumer’s file as that file is revised as a result of
the reinvestigation;
‘‘(iii) a notice that, if requested by the consumer,
a description of the procedure used to determine the
accuracy and completeness of the information shall
be provided to the consumer by the agency, including
the business name and address of any furnisher of
information contacted in connection with such information and the telephone number of such furnisher, if
reasonably available;
‘‘(iv) a notice that the consumer has the right
to add a statement to the consumer’s file disputing
the accuracy or completeness of the information; and
‘‘(v) a notice that the consumer has the right to
request under subsection (d) that the consumer reporting agency furnish notifications under that subsection.
‘‘(7) DESCRIPTION OF REINVESTIGATION PROCEDURE.—A
consumer reporting agency shall provide to a consumer a
description referred to in paragraph (6)(B)(iv) by not later than
15 days after receiving a request from the consumer for that
description.
‘‘(8) EXPEDITED DISPUTE RESOLUTION.—If a dispute regarding an item of information in a consumer’s file at a consumer
reporting agency is resolved in accordance with paragraph
(5)(A) by the deletion of the disputed information by not later
than 3 business days after the date on which the agency
receives notice of the dispute from the consumer in accordance
with paragraph (1)(A), then the agency shall not be required
to comply with paragraphs (2), (6), and (7) with respect to
that dispute if the agency—
‘‘(A) provides prompt notice of the deletion to the
consumer by telephone;
‘‘(B) includes in that notice, or in a written notice
that accompanies a confirmation and consumer report provided in accordance with subparagraph (C), a statement
of the consumer’s right to request under subsection (d)
that the agency furnish notifications under that subsection;
and
‘‘(C) provides written confirmation of the deletion and
a copy of a consumer report on the consumer that is based
on the consumer’s file after the deletion, not later than
5 business days after making the deletion.’’.
(b) CONFORMING AMENDMENT.—Section 611(d) of the Fair
Credit Reporting Act (15 U.S.C. 1681i(d)) is amended by striking
‘‘The consumer reporting agency shall clearly’’ and all that follows
through the end of the subsection.
SEC. 2410. CHARGES FOR CERTAIN DISCLOSURES.

Section 612 of the Fair Credit Reporting Act (15 U.S.C. 1681j)
is amended to read as follows:
‘‘SEC. 612. CHARGES FOR CERTAIN DISCLOSURES.

‘‘(a) REASONABLE CHARGES ALLOWED
SURES.—

FOR

CERTAIN DISCLO-

110 STAT. 3009–443

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(1) IN GENERAL.—Except as provided in subsections (b),
(c), and (d), a consumer reporting agency may impose a reasonable charge on a consumer—
‘‘(A) for making a disclosure to the consumer pursuant
to section 609, which charge—
‘‘(i) shall not exceed $8; and
‘‘(ii) shall be indicated to the consumer before making the disclosure; and
‘‘(B) for furnishing, pursuant to section 611(d), following a reinvestigation under section 611(a), a statement,
codification, or summary to a person designated by the
consumer under that section after the 30-day period beginning on the date of notification of the consumer under
paragraph (6) or (8) of section 611(a) with respect to the
reinvestigation, which charge—
‘‘(i) shall not exceed the charge that the agency
would impose on each designated recipient for a
consumer report; and
‘‘(ii) shall be indicated to the consumer before furnishing such information.
‘‘(2) MODIFICATION OF AMOUNT.—The Federal Trade
Commission shall increase the amount referred to in paragraph
(1)(A)(i) on January 1 of each year, based proportionally on
changes in the Consumer Price Index, with fractional changes
rounded to the nearest fifty cents.
‘‘(b) FREE DISCLOSURE AFTER ADVERSE NOTICE TO CONSUMER.—
Each consumer reporting agency that maintains a file on a
consumer shall make all disclosures pursuant to section 609 without
charge to the consumer if, not later than 60 days after receipt
by such consumer of a notification pursuant to section 615, or
of a notification from a debt collection agency affiliated with that
consumer reporting agency stating that the consumer’s credit rating
may be or has been adversely affected, the consumer makes a
request under section 609.
‘‘(c) FREE DISCLOSURE UNDER CERTAIN OTHER CIRCUMSTANCES.—Upon the request of the consumer, a consumer
reporting agency shall make all disclosures pursuant to section
609 once during any 12-month period without charge to that
consumer if the consumer certifies in writing that the consumer—
‘‘(1) is unemployed and intends to apply for employment
in the 60-day period beginning on the date on which the certification is made;
‘‘(2) is a recipient of public welfare assistance; or
‘‘(3) has reason to believe that the file on the consumer
at the agency contains inaccurate information due to fraud.
‘‘(d) OTHER CHARGES PROHIBITED.—A consumer reporting
agency shall not impose any charge on a consumer for providing
any notification required by this title or making any disclosure
required by this title, except as authorized by subsection (a).’’.
SEC. 2411. DUTIES OF USERS OF CONSUMER REPORTS.

(a) DUTIES OF USERS TAKING ADVERSE ACTIONS.—Section 615(a)
of the Fair Credit Reporting Act (15 U.S.C. 1681m(a)) is amended
to read as follows:
‘‘(a) DUTIES OF USERS TAKING ADVERSE ACTIONS ON THE BASIS
OF INFORMATION CONTAINED IN CONSUMER REPORTS.—If any person
takes any adverse action with respect to any consumer that is

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110 STAT. 3009–444

based in whole or in part on any information contained in a
consumer report, the person shall—
‘‘(1) provide oral, written, or electronic notice of the adverse
action to the consumer;
‘‘(2) provide to the consumer orally, in writing, or electronically—
‘‘(A) the name, address, and telephone number of the
consumer reporting agency (including a toll-free telephone
number established by the agency if the agency compiles
and maintains files on consumers on a nationwide basis)
that furnished the report to the person; and
‘‘(B) a statement that the consumer reporting agency
did not make the decision to take the adverse action and
is unable to provide the consumer the specific reasons
why the adverse action was taken; and
‘‘(3) provide to the consumer an oral, written, or electronic
notice of the consumer’s right—
‘‘(A) to obtain, under section 612, a free copy of a
consumer report on the consumer from the consumer
reporting agency referred to in paragraph (2), which notice
shall include an indication of the 60-day period under that
section for obtaining such a copy; and
‘‘(B) to dispute, under section 611, with a consumer
reporting agency the accuracy or completeness of any
information in a consumer report furnished by the agency.’’.
(b) DUTIES OF USERS MAKING CERTAIN CREDIT SOLICITATIONS.—
Section 615 of the Fair Credit Reporting Act (15 U.S.C. 1681m)
is amended by adding at the end the following new subsection:
‘‘(d) DUTIES OF USERS MAKING WRITTEN CREDIT OR INSURANCE
SOLICITATIONS ON THE BASIS OF INFORMATION CONTAINED IN
CONSUMER FILES.—
‘‘(1) IN GENERAL.—Any person who uses a consumer report
on any consumer in connection with any credit or insurance
transaction that is not initiated by the consumer, that is provided to that person under section 604(c)(1)(B), shall provide
with each written solicitation made to the consumer regarding
the transaction a clear and conspicuous statement that—
‘‘(A) information contained in the consumer’s consumer
report was used in connection with the transaction;
‘‘(B) the consumer received the offer of credit or insurance because the consumer satisfied the criteria for credit
worthiness or insurability under which the consumer was
selected for the offer;
‘‘(C) if applicable, the credit or insurance may not
be extended if, after the consumer responds to the offer,
the consumer does not meet the criteria used to select
the consumer for the offer or any applicable criteria bearing
on credit worthiness or insurability or does not furnish
any required collateral;
‘‘(D) the consumer has a right to prohibit information
contained in the consumer’s file with any consumer reporting agency from being used in connection with any credit
or insurance transaction that is not initiated by the
consumer; and
‘‘(E) the consumer may exercise the right referred to
in subparagraph (D) by notifying a notification system
established under section 604(e).

110 STAT. 3009–445

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(2) DISCLOSURE OF ADDRESS AND TELEPHONE NUMBER.—
A statement under paragraph (1) shall include the address
and toll-free telephone number of the appropriate notification
system established under section 604(e).
‘‘(3) MAINTAINING CRITERIA ON FILE.—A person who makes
an offer of credit or insurance to a consumer under a credit
or insurance transaction described in paragraph (1) shall maintain on file the criteria used to select the consumer to receive
the offer, all criteria bearing on credit worthiness or insurability, as applicable, that are the basis for determining whether
or not to extend credit or insurance pursuant to the offer,
and any requirement for the furnishing of collateral as a condition of the extension of credit or insurance, until the expiration
of the 3-year period beginning on the date on which the offer
is made to the consumer.
‘‘(4) AUTHORITY OF FEDERAL AGENCIES REGARDING UNFAIR
OR DECEPTIVE ACTS OR PRACTICES NOT AFFECTED.—This section
is not intended to affect the authority of any Federal or State
agency to enforce a prohibition against unfair or deceptive
acts or practices, including the making of false or misleading
statements in connection with a credit or insurance transaction
that is not initiated by the consumer.’’.
(c) DUTIES OF USERS MAKING OTHER SOLICITATIONS.—Section
615 of the Fair Credit Reporting Act (15 U.S.C. 1681m) is amended
by adding at the end the following new subsection:
‘‘(e)
(d) CONFORMING AMENDMENT.—Section 615(c) of the Fair Credit
Reporting Act (15 U.S.C. 1681m(c)) is amended by striking ‘‘subsections (a) and (b)’’ and inserting ‘‘this section’’.
(e) DUTIES OF PERSON TAKING CERTAIN ACTIONS BASED ON
INFORMATION PROVIDED BY AFFILIATE.—Section 615(b) of the Fair
Credit Reporting Act (15 U.S.C. 1681m(b)) is amended—
(1) by striking ‘‘(b) Whenever credit’’ and inserting the
following:
‘‘(b) ADVERSE ACTION BASED ON INFORMATION OBTAINED FROM
THIRD PARTIES OTHER THAN CONSUMER REPORTING AGENCIES.—
‘‘(1) IN GENERAL.—Whenever credit’’;
(2) by adding at the end the following new paragraph:
‘‘(2) DUTIES OF PERSON TAKING CERTAIN ACTIONS BASED
ON INFORMATION PROVIDED BY AFFILIATE.—
‘‘(A) DUTIES, GENERALLY.—If a person takes an action
described in subparagraph (B) with respect to a consumer,
based in whole or in part on information described in
subparagraph (C), the person shall—
‘‘(i) notify the consumer of the action, including
a statement that the consumer may obtain the information in accordance with clause (ii); and
‘‘(ii) upon a written request from the consumer
received within 60 days after transmittal of the notice
required by clause (i), disclose to the consumer the
nature of the information upon which the action is
based by not later than 30 days after receipt of the
request.
‘‘(B) ACTION DESCRIBED.—An action referred to in
subparagraph (A) is an adverse action described in section

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110 STAT. 3009–446

603(k)(1)(A), taken in connection with a transaction initiated by the consumer, or any adverse action described
in clause (i) or (ii) of section 603(k)(1)(B).
‘‘(C) INFORMATION DESCRIBED.—Information referred to
in subparagraph (A)—
‘‘(i) except as provided in clause (ii), is information
that—
‘‘(I) is furnished to the person taking the action
by a person related by common ownership or affiliated by common corporate control to the person
taking the action; and
‘‘(II) bears on the credit worthiness, credit
standing, credit capacity, character, general reputation, personal characteristics, or mode of living
of the consumer; and
‘‘(ii) does not include—
‘‘(I) information solely as to transactions or
experiences between the consumer and the person
furnishing the information; or
‘‘(II) information in a consumer report.’’.
SEC. 2412. CIVIL LIABILITY.

(a) CIVIL LIABILITY FOR WILLFUL NONCOMPLIANCE.—Section 616
of the Fair Credit Reporting Act (15 U.S.C. 1681n) is amended
by striking ‘‘Any consumer reporting agency or user of information
which’’ and inserting ‘‘(a) IN GENERAL.—Any person who’’.
(b) MINIMUM CIVIL LIABILITY FOR WILLFUL NONCOMPLIANCE.—
Section 616(a)(1) of the Fair Credit Reporting Act (15 U.S.C.
1681n(1)), as so designated by subsection (a) of this section, is
amended to read as follows:
‘‘(1)(A) any actual damages sustained by the consumer
as a result of the failure or damages of not less than $100
and not more than $1,000; or
‘‘(B) in the case of liability of a natural person for obtaining
a consumer report under false pretenses or knowingly without
a permissible purpose, actual damages sustained by the
consumer as a result of the failure or $1,000, whichever is
greater;’’.
(c) CIVIL LIABILITY FOR KNOWING NONCOMPLIANCE.—Section
616 of the Fair Credit Reporting Act (15 U.S.C. 1681n) is amended
by adding at the end the following new subsection:
‘‘(b) CIVIL LIABILITY FOR KNOWING NONCOMPLIANCE.—Any person who obtains a consumer report from a consumer reporting
agency under false pretenses or knowingly without a permissible
purpose shall be liable to the consumer reporting agency for actual
damages sustained by the consumer reporting agency or $1,000,
whichever is greater.’’.
(d) CIVIL LIABILITY FOR NEGLIGENT NONCOMPLIANCE.—Section
617 of the Fair Credit Reporting Act (15 U.S.C. 1681o) is amended
by striking ‘‘Any consumer reporting agency or user of information
which’’ and inserting ‘‘(a) IN GENERAL.—Any person who’’.
(e) ATTORNEY’S FEES.—
(1) WILLFUL NONCOMPLIANCE.—Section 616 of the Fair
Credit Reporting Act (15 U.S.C. 1681n) is amended by adding
at the end the following new subsection:
‘‘(c) ATTORNEY’S FEES.—Upon a finding by the court that an
unsuccessful pleading, motion, or other paper filed in connection

110 STAT. 3009–447

PUBLIC LAW 104–208—SEPT. 30, 1996

with an action under this section was filed in bad faith or for
purposes of harassment, the court shall award to the prevailing
party attorney’s fees reasonable in relation to the work expended
in responding to the pleading, motion, or other paper.’’.
(2) NEGLIGENT NONCOMPLIANCE.—Section 617 of the Fair
Credit Reporting Act (15 U.S.C. 1681o) is amended by adding
at the end the following new subsection:
‘‘(b) ATTORNEY’S FEES.—On a finding by the court that an
unsuccessful pleading, motion, or other paper filed in connection
with an action under this section was filed in bad faith or for
purposes of harassment, the court shall award to the prevailing
party attorney’s fees reasonable in relation to the work expended
in responding to the pleading, motion, or other paper.’’.
SEC. 2413. RESPONSIBILITIES OF PERSONS WHO FURNISH INFORMATION TO CONSUMER REPORTING AGENCIES.

15 USC 1681t.
15 USC 1681s–2.

(a) IN GENERAL.—The Fair Credit Reporting Act (15 U.S.C.
1681 et seq.) is amended—
(1) by redesignating section 623 as section 624; and
(2) by inserting after section 622 the following:
‘‘SEC. 623. RESPONSIBILITIES OF FURNISHERS OF INFORMATION TO
CONSUMER REPORTING AGENCIES.

‘‘(a) DUTY OF FURNISHERS OF INFORMATION TO PROVIDE
ACCURATE INFORMATION.—
‘‘(1) PROHIBITION.—
‘‘(A) REPORTING INFORMATION WITH ACTUAL KNOWLEDGE OF ERRORS.—A person shall not furnish any information relating to a consumer to any consumer reporting
agency if the person knows or consciously avoids knowing
that the information is inaccurate.
‘‘(B) REPORTING INFORMATION AFTER NOTICE AND CONFIRMATION OF ERRORS.—A person shall not furnish information relating to a consumer to any consumer reporting
agency if—
‘‘(i) the person has been notified by the consumer,
at the address specified by the person for such notices,
that specific information is inaccurate; and
‘‘(ii) the information is, in fact, inaccurate.
‘‘(C) NO ADDRESS REQUIREMENT.—A person who clearly
and conspicuously specifies to the consumer an address
for notices referred to in subparagraph (B) shall not be
subject to subparagraph (A); however, nothing in subparagraph (B) shall require a person to specify such an address.
‘‘(2) DUTY TO CORRECT AND UPDATE INFORMATION.—A person who—
‘‘(A) regularly and in the ordinary course of business
furnishes information to one or more consumer reporting
agencies about the person’s transactions or experiences
with any consumer; and
‘‘(B) has furnished to a consumer reporting agency
information that the person determines is not complete
or accurate,
shall promptly notify the consumer reporting agency of that
determination and provide to the agency any corrections to
that information, or any additional information, that is necessary to make the information provided by the person to

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110 STAT. 3009–448

the agency complete and accurate, and shall not thereafter
furnish to the agency any of the information that remains
not complete or accurate.
‘‘(3) DUTY TO PROVIDE NOTICE OF DISPUTE.—If the completeness or accuracy of any information furnished by any person
to any consumer reporting agency is disputed to such person
by a consumer, the person may not furnish the information
to any consumer reporting agency without notice that such
information is disputed by the consumer.
‘‘(4) DUTY TO PROVIDE NOTICE OF CLOSED ACCOUNTS.—A
person who regularly and in the ordinary course of business
furnishes information to a consumer reporting agency regarding
a consumer who has a credit account with that person shall
notify the agency of the voluntary closure of the account by
the consumer, in information regularly furnished for the period
in which the account is closed.
‘‘(5) DUTY TO PROVIDE NOTICE OF DELINQUENCY OF
ACCOUNTS.—A person who furnishes information to a consumer
reporting agency regarding a delinquent account being placed
for collection, charged to profit or loss, or subjected to any
similar action shall, not later than 90 days after furnishing
the information, notify the agency of the month and year of
the commencement of the delinquency that immediately preceded the action.
‘‘(b) DUTIES OF FURNISHERS OF INFORMATION UPON NOTICE
OF DISPUTE.—
‘‘(1) IN GENERAL.—After receiving notice pursuant to section
611(a)(2) of a dispute with regard to the completeness or
accuracy of any information provided by a person to a consumer
reporting agency, the person shall—
‘‘(A) conduct an investigation with respect to the disputed information;
‘‘(B) review all relevant information provided by the
consumer reporting agency pursuant to section 611(a)(2);
‘‘(C) report the results of the investigation to the
consumer reporting agency; and
‘‘(D) if the investigation finds that the information
is incomplete or inaccurate, report those results to all other
consumer reporting agencies to which the person furnished
the information and that compile and maintain files on
consumers on a nationwide basis.
‘‘(2) DEADLINE.—A person shall complete all investigations,
reviews, and reports required under paragraph (1) regarding
information provided by the person to a consumer reporting
agency, before the expiration of the period under section
611(a)(1) within which the consumer reporting agency is
required to complete actions required by that section regarding
that information.
‘‘(c) LIMITATION ON LIABILITY.—Sections 616 and 617 do not
apply to any failure to comply with subsection (a), except as provided in section 621(c)(1)(B).
‘‘(d) LIMITATION ON ENFORCEMENT.—Subsection (a) shall be
enforced exclusively under section 621 by the Federal agencies
and officials and the State officials identified in that section.’’.
(b) CONFORMING AMENDMENT.—The table of sections at the
beginning of the Fair Credit Reporting Act (15 U.S.C. 1681a et

110 STAT. 3009–449

PUBLIC LAW 104–208—SEPT. 30, 1996

seq.) is amended by striking the item relating to section 623 and
inserting the following:
‘‘623. Responsibilities of furnishers of information to consumer reporting
agencies.
‘‘624. Relation to State laws.’’.
SEC. 2414. INVESTIGATIVE CONSUMER REPORTS.

Section 606 of the Fair Credit Reporting Act (15 U.S.C. 1681d)
is amended—
(1) in subsection (a)(1), by striking ‘‘or’’ at the end and
inserting ‘‘and’’;
(2) by striking subsection (a)(2) and inserting the following:
‘‘(2) the person certifies or has certified to the consumer
reporting agency that—
‘‘(A) the person has made the disclosures to the
consumer required by paragraph (1); and
‘‘(B) the person will comply with subsection (b).’’;
(3) in subsection (b), by striking ‘‘shall’’ the second place
such term appears; and
(4) by adding at the end the following new subsection:
‘‘(d) PROHIBITIONS.—
‘‘(1) CERTIFICATION.—A consumer reporting agency shall
not prepare or furnish an investigative consumer report unless
the agency has received a certification under subsection (a)(2)
from the person who requested the report.
‘‘(2) INQUIRIES.—A consumer reporting agency shall not
make an inquiry for the purpose of preparing an investigative
consumer report on a consumer for employment purposes if
the making of the inquiry by an employer or prospective
employer of the consumer would violate any applicable Federal
or State equal employment opportunity law or regulation.
‘‘(3) CERTAIN PUBLIC RECORD INFORMATION.—Except as
otherwise provided in section 613, a consumer reporting agency
shall not furnish an investigative consumer report that includes
information that is a matter of public record and that relates
to an arrest, indictment, conviction, civil judicial action, tax
lien, or outstanding judgment, unless the agency has verified
the accuracy of the information during the 30-day period ending
on the date on which the report is furnished.
‘‘(4) CERTAIN ADVERSE INFORMATION.—A consumer reporting agency shall not prepare or furnish an investigative
consumer report on a consumer that contains information that
is adverse to the interest of the consumer and that is obtained
through a personal interview with a neighbor, friend, or associate of the consumer or with another person with whom the
consumer is acquainted or who has knowledge of such item
of information, unless—
‘‘(A) the agency has followed reasonable procedures
to obtain confirmation of the information, from an additional source that has independent and direct knowledge
of the information; or
‘‘(B) the person interviewed is the best possible source
of the information.’’.

PUBLIC LAW 104–208—SEPT. 30, 1996
SEC.

2415.

INCREASED CRIMINAL PENALTIES FOR
INFORMATION UNDER FALSE PRETENSES.

110 STAT. 3009–450
OBTAINING

(a) OBTAINING INFORMATION UNDER FALSE PRETENSES.—Section 619 of the Fair Credit Reporting Act (15 U.S.C. 1681q) is
amended by striking ‘‘fined not more than $5,000 or imprisoned
not more than one year, or both’’ and inserting ‘‘fined under title
18, United States Code, imprisoned for not more than 2 years,
or both’’.
(b) UNAUTHORIZED DISCLOSURES BY OFFICERS OR EMPLOYEES.—
Section 620 of the Fair Credit Reporting Act (15 U.S.C. 1681r)
is amended by striking ‘‘fined not more than $5,000 or imprisoned
not more than one year, or both’’ and inserting ‘‘fined under title
18, United States Code, imprisoned for not more than 2 years,
or both’’.
SEC. 2416. ADMINISTRATIVE ENFORCEMENT.

(a) AVAILABLE ENFORCEMENT POWERS.—Section 621(a) of the
Fair Credit Reporting Act (15 U.S.C. 1681s(a)) is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(a)’’;
(2) by adding at the end the following new paragraph:
‘‘(2)(A) In the event of a knowing violation, which constitutes
a pattern or practice of violations of this title, the Commission
may commence a civil action to recover a civil penalty in a district
court of the United States against any person that violates this
title. In such action, such person shall be liable for a civil penalty
of not more than $2,500 per violation.
‘‘(B) In determining the amount of a civil penalty under
subparagraph (A), the court shall take into account the degree
of culpability, any history of prior such conduct, ability to pay,
effect on ability to continue to do business, and such other matters
as justice may require.
‘‘(3) Notwithstanding paragraph (2), a court may not impose
any civil penalty on a person for a violation of section 623(a)(1)
unless the person has been enjoined from committing the violation,
or ordered not to commit the violation, in an action or proceeding
brought by or on behalf of the Federal Trade Commission, and
has violated the injunction or order, and the court may not impose
any civil penalty for any violation occurring before the date of
the violation of the injunction or order.
‘‘(4) Neither the Commission nor any other agency referred
to in subsection (b) may prescribe trade regulation rules or other
regulations with respect to this title.’’.
(b) AGENCIES RESPONSIBLE FOR ENFORCEMENT.—Section 621
of the Fair Credit Reporting Act (15 U.S.C. 1681s) is amended—
(1) in subsection (a), by inserting ‘‘ENFORCEMENT BY FEDERAL TRADE COMMISSION.—’’ before ‘‘Compliance with the
requirements’’;
(2) in subsection (b), by striking the matter preceding paragraph (1) and inserting the following:
‘‘(b) ENFORCEMENT BY OTHER AGENCIES.—Compliance with the
requirements imposed under this title with respect to consumer
reporting agencies, persons who use consumer reports from such
agencies, persons who furnish information to such agencies, and
users of information that are subject to subsection (d) or (e) of
section 615 shall be enforced under—’’; and

110 STAT. 3009–451

PUBLIC LAW 104–208—SEPT. 30, 1996

(3) in subsection (c), by adding at the end the following:
‘‘Notwithstanding the preceding, no agency referred to in subsection (b) may conduct an examination of a bank, savings
association, or credit union regarding compliance with the provisions of this title, except in response to a complaint (or if
the agency otherwise has knowledge) that the bank, savings
association, or credit union has violated a provision of this
title, in which case, the agency may conduct an examination
as necessary to investigate the complaint. If an agency determines during an investigation in response to a complaint that
a violation of this title has occurred, the agency may, during
its next 2 regularly scheduled examinations of the bank, savings
association, or credit union, examine for compliance with this
title.’’.
SEC. 2417. STATE ENFORCEMENT OF FAIR CREDIT REPORTING ACT.

Section 621 of the Fair Credit Reporting Act (15 U.S.C. 1681s)
is amended—
(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting after subsection (b) the following new subsection:
‘‘(c) STATE ACTION FOR VIOLATIONS.—
‘‘(1) AUTHORITY OF STATES.—In addition to such other remedies as are provided under State law, if the chief law enforcement officer of a State, or an official or agency designated
by a State, has reason to believe that any person has violated
or is violating this title, the State—
‘‘(A) may bring an action to enjoin such violation in
any appropriate United States district court or in any
other court of competent jurisdiction;
‘‘(B) subject to paragraph (5), may bring an action
on behalf of the residents of the State to recover—
‘‘(i) damages for which the person is liable to such
residents under sections 616 and 617 as a result of
the violation;
‘‘(ii) in the case of a violation of section 623(a),
damages for which the person would, but for section
623(c), be liable to such residents as a result of the
violation; or
‘‘(iii) damages of not more than $1,000 for each
willful or negligent violation; and
‘‘(C) in the case of any successful action under subparagraph (A) or (B), shall be awarded the costs of the action
and reasonable attorney fees as determined by the court.
‘‘(2) RIGHTS OF FEDERAL REGULATORS.—The State shall
serve prior written notice of any action under paragraph (1)
upon the Federal Trade Commission or the appropriate Federal
regulator determined under subsection (b) and provide the
Commission or appropriate Federal regulator with a copy of
its complaint, except in any case in which such prior notice
is not feasible, in which case the State shall serve such notice
immediately upon instituting such action. The Federal Trade
Commission or appropriate Federal regulator shall have the
right—
‘‘(A) to intervene in the action;
‘‘(B) upon so intervening, to be heard on all matters
arising therein;

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–452

‘‘(C) to remove the action to the appropriate United
States district court; and
‘‘(D) to file petitions for appeal.
‘‘(3) INVESTIGATORY POWERS.—For purposes of bringing any
action under this subsection, nothing in this subsection shall
prevent the chief law enforcement officer, or an official or
agency designated by a State, from exercising the powers conferred on the chief law enforcement officer or such official
by the laws of such State to conduct investigations or to administer oaths or affirmations or to compel the attendance of witnesses or the production of documentary and other evidence.
‘‘(4) LIMITATION ON STATE ACTION WHILE FEDERAL ACTION
PENDING.—If the Federal Trade Commission or the appropriate
Federal regulator has instituted a civil action or an administrative action under section 8 of the Federal Deposit Insurance
Act for a violation of this title, no State may, during the
pendency of such action, bring an action under this section
against any defendant named in the complaint of the Commission or the appropriate Federal regulator for any violation
of this title that is alleged in that complaint.
‘‘(5) LIMITATIONS ON STATE ACTIONS FOR VIOLATION OF SECTION 623(a)(1).—
‘‘(A) VIOLATION OF INJUNCTION REQUIRED.—A State
may not bring an action against a person under paragraph
(1)(B) for a violation of section 623(a)(1), unless—
‘‘(i) the person has been enjoined from committing
the violation, in an action brought by the State under
paragraph (1)(A); and
‘‘(ii) the person has violated the injunction.
‘‘(B) LIMITATION ON DAMAGES RECOVERABLE.—In an
action against a person under paragraph (1)(B) for a violation of section 623(a)(1), a State may not recover any damages incurred before the date of the violation of an injunction on which the action is based.’’.
SEC. 2418. FEDERAL RESERVE BOARD AUTHORITY.

Section 621 of the Fair Credit Reporting Act (15 U.S.C. 1681s)
is amended by adding at the end the following new subsection:
‘‘(e) INTERPRETIVE AUTHORITY.—The Board of Governors of the
Federal Reserve System may issue interpretations of any provision
of this title as such provision may apply to any persons identified
under paragraph (1), (2), and (3) of subsection (b), or to the holding
companies and affiliates of such persons, in consultation with Federal agencies identified in paragraphs (1), (2), and (3) of subsection
(b).’’.
SEC. 2419. PREEMPTION OF STATE LAW.

Section 624 of the Fair Credit Reporting Act (as redesignated
by section 2413(a) of this chapter) is amended—
(1) by striking ‘‘This title’’ and inserting ‘‘(a) IN GENERAL.—
Except as provided in subsections (b) and (c), this title’’; and
(2) by adding at the end the following new subsection:
‘‘(b) GENERAL EXCEPTIONS.—No requirement or prohibition may
be imposed under the laws of any State—
‘‘(1) with respect to any subject matter regulated under—
‘‘(A) subsection (c) or (e) of section 604, relating to
the prescreening of consumer reports;

110 STAT. 3009–453

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(B) section 611, relating to the time by which a
consumer reporting agency must take any action, including
the provision of notification to a consumer or other person,
in any procedure related to the disputed accuracy of
information in a consumer’s file, except that this subparagraph shall not apply to any State law in effect on the
date of enactment of the Consumer Credit Reporting
Reform Act of 1996;
‘‘(C) subsections (a) and (b) of section 615, relating
to the duties of a person who takes any adverse action
with respect to a consumer;
‘‘(D) section 615(d), relating to the duties of persons
who use a consumer report of a consumer in connection
with any credit or insurance transaction that is not initiated by the consumer and that consists of a firm offer
of credit or insurance;
‘‘(E) section 605, relating to information contained in
consumer reports, except that this subparagraph shall not
apply to any State law in effect on the date of enactment
of the Consumer Credit Reporting Reform Act of 1996;
or
‘‘(F) section 623, relating to the responsibilities of persons who furnish information to consumer reporting agencies, except that this paragraph shall not apply—
‘‘(i) with respect to section 54A(a) of chapter 93
of the Massachusetts Annotated Laws (as in effect
on the date of enactment of the Consumer Credit
Reporting Reform Act of 1996); or
‘‘(ii) with respect to section 1785.25(a) of the
California Civil Code (as in effect on the date of enactment of the Consumer Credit Reporting Reform Act
of 1996);
‘‘(2) with respect to the exchange of information among
persons affiliated by common ownership or common corporate
control, except that this paragraph shall not apply with respect
to subsection (a) or (c)(1) of section 2480e of title 9, Vermont
Statutes Annotated (as in effect on the date of enactment
of the Consumer Credit Reporting Reform Act of 1996); or
‘‘(3) with respect to the form and content of any disclosure
required to be made under section 609(c).
‘‘(c) DEFINITION OF FIRM OFFER OF CREDIT OR INSURANCE.—
Notwithstanding any definition of the term ‘firm offer of credit
or insurance’ (or any equivalent term) under the laws of any State,
the definition of that term contained in section 603(l) shall be
construed to apply in the enforcement and interpretation of the
laws of any State governing consumer reports.
‘‘(d) LIMITATIONS.—Subsections (b) and (c)—
‘‘(1) do not affect any settlement, agreement, or consent
judgment between any State Attorney General and any
consumer reporting agency in effect on the date of enactment
of the Consumer Credit Reporting Reform Act of 1996; and
‘‘(2) do not apply to any provision of State law (including
any provision of a State constitution) that—
‘‘(A) is enacted after January 1, 2004;
‘‘(B) states explicitly that the provision is intended
to supplement this title; and

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–454

‘‘(C) gives greater protection to consumers than is provided under this title.’’.
SEC. 2420. EFFECTIVE DATE.

(a) IN GENERAL.—Except as otherwise specifically provided in
this chapter, the amendments made by this chapter shall become
effective 365 days after the date of enactment of this Act.
(b) EARLY COMPLIANCE.—Any person or other entity that is
subject to the requirements of this chapter may, at its option,
comply with any provision of this chapter before the date on which
that provision becomes effective under this chapter, in which case,
each of the corresponding provisions of this chapter shall be fully
applicable to such person or entity.
SEC. 2421. RELATIONSHIP TO OTHER LAW.

Nothing in this chapter or the amendments made by this chapter shall be considered to supersede or otherwise affect section
2721 of title 18, United States Code, with respect to motor vehicle
records for surveys, marketing, or solicitations.
SEC. 2422. FEDERAL RESERVE BOARD STUDY.

(a) STUDY REQUIRED.—The Board of Governors of the Federal
Reserve System, in consultation with the other Federal banking
agencies (as defined in section 3 of the Federal Deposit Insurance
Act) and the Federal Trade Commission, shall conduct a study
of whether organizations which, as of the date of the enactment
of this Act, are not subject to the Fair Credit Reporting Act as
consumer reporting agencies (as defined in section 603 of such
Act) are engaged in the business of making sensitive consumer
identification information, including social security numbers, mothers’ maiden names, prior addresses, and dates of birth, available
to the general public.
(b) DETERMINATION OF POTENTIAL FOR FRAUD.—If the Board
of Governors of the Federal Reserve System determines that
organizations referred to in subsection (a) are engaged in the business of making sensitive consumer identification information available to the general public, the Board shall determine—
(1) whether such activities create undue potential for fraud
and risk of loss to insured depository institutions (as defined
in section 3 of the Federal Deposit Insurance Act); and
(2) if so, whether changes in Federal law are necessary
to address such risks of fraud and loss.
(c) REPORT TO CONGRESS.—Before the end of the 6-month period
beginning on the date of the enactment of this Act, the Board
of Governors of the Federal Reserve System shall submit a report
to the Congress containing—
(1) the findings and conclusion of the Board in connection
with the study required under subsections (a) and (b); and
(2) recommendations for such legislative or administrative
action as the Board determines to be appropriate.
CHAPTER 2—CREDIT REPAIR ORGANIZATIONS
SEC. 2451. REGULATION OF CREDIT REPAIR ORGANIZATIONS.

Title IV of the Consumer Credit Protection Act (Public Law
90–321, 82 Stat. 164) is amended to read as follows:

15 USC 1681a
note.

15 USC 1681a
note.

110 STAT. 3009–455

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘TITLE IV—CREDIT REPAIR
ORGANIZATIONS

Credit Repair
Organizations
Act.
‘‘Sec.

‘‘401. Short title.
‘‘402. Findings and purposes.
‘‘403. Definitions.
‘‘404. Prohibited practices.
‘‘405. Disclosures.
‘‘406. Credit repair organizations contracts.
‘‘407. Right to cancel contract.
‘‘408. Noncompliance with this title.
‘‘409. Civil liability.
‘‘410. Administrative enforcement.
‘‘411. Statute of limitations.
‘‘412. Relation to State law.
‘‘413. Effective date.
15 USC 1601
note.

‘‘SEC. 401. SHORT TITLE.

15 USC 1679.

‘‘SEC. 402. FINDINGS AND PURPOSES.

‘‘This title may be cited as the ‘Credit Repair Organizations
Act’.
‘‘(a) FINDINGS.—The Congress makes the following findings:
‘‘(1) Consumers have a vital interest in establishing and
maintaining their credit worthiness and credit standing in order
to obtain and use credit. As a result, consumers who have
experienced credit problems may seek assistance from credit
repair organizations which offer to improve the credit standing
of such consumers.
‘‘(2) Certain advertising and business practices of some
companies engaged in the business of credit repair services
have worked a financial hardship upon consumers, particularly
those of limited economic means and who are inexperienced
in credit matters.
‘‘(b) PURPOSES.—The purposes of this title are—
‘‘(1) to ensure that prospective buyers of the services of
credit repair organizations are provided with the information
necessary to make an informed decision regarding the purchase
of such services; and
‘‘(2) to protect the public from unfair or deceptive advertising and business practices by credit repair organizations.

15 USC 1679a.

‘‘SEC. 403. DEFINITIONS.

‘‘For purposes of this title, the following definitions apply:
‘‘(1) CONSUMER.—The term ‘consumer’ means an individual.
‘‘(2) CONSUMER CREDIT TRANSACTION.—The term ‘consumer
credit transaction’ means any transaction in which credit is
offered or extended to an individual for personal, family, or
household purposes.
‘‘(3) CREDIT REPAIR ORGANIZATION.—The term ‘credit repair
organization’—

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–456

‘‘(A) means any person who uses any instrumentality
of interstate commerce or the mails to sell, provide, or
perform (or represent that such person can or will sell,
provide, or perform) any service, in return for the payment
of money or other valuable consideration, for the express
or implied purpose of—
‘‘(i) improving any consumer’s credit record, credit
history, or credit rating; or
‘‘(ii) providing advice or assistance to any consumer
with regard to any activity or service described in
clause (i); and
‘‘(B) does not include—
‘‘(i) any nonprofit organization which is exempt
from taxation under section 501(c)(3) of the Internal
Revenue Code of 1986;
‘‘(ii) any creditor (as defined in section 103 of the
Truth in Lending Act), with respect to any consumer,
to the extent the creditor is assisting the consumer
to restructure any debt owed by the consumer to the
creditor; or
‘‘(iii) any depository institution (as that term is
defined in section 3 of the Federal Deposit Insurance
Act) or any Federal or State credit union (as those
terms are defined in section 101 of the Federal Credit
Union Act), or any affiliate or subsidiary of such a
depository institution or credit union.
‘‘(4) CREDIT.—The term ‘credit’ has the meaning given to
such term in section 103(e) of this Act.
‘‘SEC. 404. PROHIBITED PRACTICES.

‘‘(a) IN GENERAL.—No person may—
‘‘(1) make any statement, or counsel or advise any consumer
to make any statement, which is untrue or misleading (or
which, upon the exercise of reasonable care, should be known
by the credit repair organization, officer, employee, agent, or
other person to be untrue or misleading) with respect to any
consumer’s credit worthiness, credit standing, or credit capacity
to—
‘‘(A) any consumer reporting agency (as defined in section 603(f) of this Act); or
‘‘(B) any person—
‘‘(i) who has extended credit to the consumer; or
‘‘(ii) to whom the consumer has applied or is applying for an extension of credit;
‘‘(2) make any statement, or counsel or advise any consumer
to make any statement, the intended effect of which is to
alter the consumer’s identification to prevent the display of
the consumer’s credit record, history, or rating for the purpose
of concealing adverse information that is accurate and not
obsolete to—
‘‘(A) any consumer reporting agency;
‘‘(B) any person—
‘‘(i) who has extended credit to the consumer; or
‘‘(ii) to whom the consumer has applied or is applying for an extension of credit;
‘‘(3) make or use any untrue or misleading representation
of the services of the credit repair organization; or

15 USC 1679b.

110 STAT. 3009–457

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(4) engage, directly or indirectly, in any act, practice,
or course of business that constitutes or results in the commission of, or an attempt to commit, a fraud or deception on
any person in connection with the offer or sale of the services
of the credit repair organization.
‘‘(b) PAYMENT IN ADVANCE.—No credit repair organization may
charge or receive any money or other valuable consideration for
the performance of any service which the credit repair organization
has agreed to perform for any consumer before such service is
fully performed.
15 USC 1679c.

‘‘SEC. 405. DISCLOSURES.

‘‘(a) DISCLOSURE REQUIRED.—Any credit repair organization
shall provide any consumer with the following written statement
before any contract or agreement between the consumer and the
credit repair organization is executed:

‘‘ ‘Consumer Credit File Rights Under State
and Federal Law
‘‘ ‘You have a right to dispute inaccurate information in your
credit report by contacting the credit bureau directly. However,
neither you nor any ‘‘credit repair’’ company or credit repair
organization has the right to have accurate, current, and verifiable
information removed from your credit report. The credit bureau
must remove accurate, negative information from your report only
if it is over 7 years old. Bankruptcy information can be reported
for 10 years.
‘‘ ‘You have a right to obtain a copy of your credit report from
a credit bureau. You may be charged a reasonable fee. There is
no fee, however, if you have been turned down for credit, employment, insurance, or a rental dwelling because of information in
your credit report within the preceding 60 days. The credit bureau
must provide someone to help you interpret the information in
your credit file. You are entitled to receive a free copy of your
credit report if you are unemployed and intend to apply for employment in the next 60 days, if you are a recipient of public welfare
assistance, or if you have reason to believe that there is inaccurate
information in your credit report due to fraud.
‘‘ ‘You have a right to sue a credit repair organization that
violates the Credit Repair Organization Act. This law prohibits
deceptive practices by credit repair organizations.
‘‘ ‘You have the right to cancel your contract with any credit
repair organization for any reason within 3 business days from
the date you signed it.
‘‘ ‘Credit bureaus are required to follow reasonable procedures
to ensure that the information they report is accurate. However,
mistakes may occur.
‘‘ ‘You may, on your own, notify a credit bureau in writing
that you dispute the accuracy of information in your credit file.
The credit bureau must then reinvestigate and modify or remove
inaccurate or incomplete information. The credit bureau may not
charge any fee for this service. Any pertinent information and
copies of all documents you have concerning an error should be
given to the credit bureau.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–458

‘‘ ‘If the credit bureau’s reinvestigation does not resolve the
dispute to your satisfaction, you may send a brief statement to
the credit bureau, to be kept in your file, explaining why you
think the record is inaccurate. The credit bureau must include
a summary of your statement about disputed information with
any report it issues about you.
‘‘ ‘The Federal Trade Commission regulates credit bureaus and
credit repair organizations. For more information contact:
‘‘ ‘The Public Reference Branch
‘‘ ‘Federal Trade Commission
‘‘ ‘Washington, D.C. 20580’.
‘‘(b) SEPARATE STATEMENT REQUIREMENT.—The written statement required under this section shall be provided as a document
which is separate from any written contract or other agreement
between the credit repair organization and the consumer or any
other written material provided to the consumer.
‘‘(c) RETENTION OF COMPLIANCE RECORDS.—
‘‘(1) IN GENERAL.—The credit repair organization shall
maintain a copy of the statement signed by the consumer
acknowledging receipt of the statement.
‘‘(2) MAINTENANCE FOR 2 YEARS.—The copy of any consumer’s statement shall be maintained in the organization’s files
for 2 years after the date on which the statement is signed
bythe consumer.
‘‘SEC. 406. CREDIT REPAIR ORGANIZATIONS CONTRACTS.

‘‘(a) WRITTEN CONTRACTS REQUIRED.—No services may be provided by any credit repair organization for any consumer—
‘‘(1) unless a written and dated contract (for the purchase
of such services) which meets the requirements of subsection
(b) has been signed by the consumer; or
‘‘(2) before the end of the 3-business-day period beginning
on the date the contract is signed.
‘‘(b) TERMS AND CONDITIONS OF CONTRACT.—No contract
referred to in subsection (a) meets the requirements of this subsection unless such contract includes (in writing)—
‘‘(1) the terms and conditions of payment, including the
total amount of all payments to be made by the consumer
to the credit repair organization or to any other person;
‘‘(2) a full and detailed description of the services to be
performed by the credit repair organization for the consumer,
including—
‘‘(A) all guarantees of performance; and
‘‘(B) an estimate of—
‘‘(i) the date by which the performance of the services (to be performed by the credit repair organization
or any other person) will be complete; or
‘‘(ii) the length of the period necessary to perform
such services;
‘‘(3) the credit repair organization’s name and principal
business address; and
‘‘(4) a conspicuous statement in bold face type, in immediate
proximity to the space reserved for the consumer’s signature
on the contract, which reads as follows: ‘You may cancel this

15 USC 1679d.

110 STAT. 3009–459

PUBLIC LAW 104–208—SEPT. 30, 1996

contract without penalty or obligation at any time before midnight of the 3rd business day after the date on which you
signed the contract. See the attached notice of cancellation
form for an explanation of this right.’.
15 USC 1679e.

‘‘SEC. 407. RIGHT TO CANCEL CONTRACT.

‘‘(a) IN GENERAL.—Any consumer may cancel any contract with
any credit repair organization without penalty or obligation by
notifying the credit repair organization of the consumer’s intention
to do so at any time before midnight of the 3rd business day
which begins after the date on which the contract or agreement
between the consumer and the credit repair organization is executed
or would, but for this subsection, become enforceable against the
parties.
‘‘(b) CANCELLATION FORM AND OTHER INFORMATION.—Each contract shall be accompanied by a form, in duplicate, which has
the heading ‘Notice of Cancellation’ and contains in bold face type
the following statement:
‘‘ ‘You may cancel this contract, without any penalty or
obligation, at any time before midnight of the 3rd day which
begins after the date the contract is signed by you.
‘‘ ‘To cancel this contract, mail or deliver a signed, dated
copy of this cancellation notice, or any other written notice
to [ name of credit repair organization ] at [ address of credit
repair organization ] before midnight on [ date ]
‘‘ ‘I hereby cancel this transaction,
[ date ]
[ purchaser’s signature ].’.
‘‘(c) CONSUMER COPY OF CONTRACT REQUIRED.—Any consumer
who enters into any contract with any credit repair organization
shall be given, by the organization—
‘‘(1) a copy of the completed contract and the disclosure
statement required under section 405; and
‘‘(2) a copy of any other document the credit repair
organization requires the consumer to sign, at the time the
contract or the other document is signed.
15 USC 1679f.

‘‘SEC. 408. NONCOMPLIANCE WITH THIS TITLE.

‘‘(a) CONSUMER WAIVERS INVALID.—Any waiver by any
consumer of any protection provided by or any right of the consumer
under this title—
‘‘(1) shall be treated as void; and
‘‘(2) may not be enforced by any Federal or State court
or any other person.
‘‘(b) ATTEMPT TO OBTAIN WAIVER.—Any attempt by any person
to obtain a waiver from any consumer of any protection provided
by or any right of the consumer under this title shall be treated
as a violation of this title.
‘‘(c) CONTRACTS NOT IN COMPLIANCE.—Any contract for services
which does not comply with the applicable provisions of this title—
‘‘(1) shall be treated as void; and
‘‘(2) may not be enforced by any Federal or State court
or any other person.
15 USC 1679g.

‘‘SEC. 409. CIVIL LIABILITY.

‘‘(a) LIABILITY ESTABLISHED.—Any person who fails to comply
with any provision of this title with respect to any other person

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–460

shall be liable to such person in an amount equal to the sum
of the amounts determined under each of the following paragraphs:
‘‘(1) ACTUAL DAMAGES.—The greater of—
‘‘(A) the amount of any actual damage sustained by
such person as a result of such failure; or
‘‘(B) any amount paid by the person to the credit repair
organization.
‘‘(2) PUNITIVE DAMAGES.—
‘‘(A) INDIVIDUAL ACTIONS.—In the case of any action
by an individual, such additional amount as the court
may allow.
‘‘(B) CLASS ACTIONS.—In the case of a class action,
the sum of—
‘‘(i) the aggregate of the amount which the court
may allow for each named plaintiff; and
‘‘(ii) the aggregate of the amount which the court
may allow for each other class member, without regard
to any minimum individual recovery.
‘‘(3) ATTORNEYS’ FEES.—In the case of any successful action
to enforce any liability under paragraph (1) or (2), the costs
of the action, together with reasonable attorneys’ fees.
‘‘(b) FACTORS TO BE CONSIDERED IN AWARDING PUNITIVE DAMAGES.—In determining the amount of any liability of any credit
repair organization under subsection (a)(2), the court shall consider,
among other relevant factors—
‘‘(1) the frequency and persistence of noncompliance by
the credit repair organization;
‘‘(2) the nature of the noncompliance;
‘‘(3) the extent to which such noncompliance was intentional; and
‘‘(4) in the case of any class action, the number of consumers
adversely affected.
‘‘SEC. 410. ADMINISTRATIVE ENFORCEMENT.

‘‘(a) IN GENERAL.—Compliance with the requirements imposed
under this title with respect to credit repair organizations shall
be enforced under the Federal Trade Commission Act by the Federal
Trade Commission.
‘‘(b) VIOLATIONS OF THIS TITLE TREATED AS VIOLATIONS OF
FEDERAL TRADE COMMISSION ACT.—
‘‘(1) IN GENERAL.—For the purpose of the exercise by the
Federal Trade Commission of the Commission’s functions and
powers under the Federal Trade Commission Act, any violation
of any requirement or prohibition imposed under this title
with respect to credit repair organizations shall constitute an
unfair or deceptive act or practice in commerce in violation
of section 5(a) of the Federal Trade Commission Act.
‘‘(2) ENFORCEMENT AUTHORITY UNDER OTHER LAW.—All
functions and powers of the Federal Trade Commission under
the Federal Trade Commission Act shall be available to the
Commission to enforce compliance with this title by any person
subject to enforcement by the Federal Trade Commission pursuant to this subsection, including the power to enforce the provisions of this title in the same manner as if the violation had
been a violation of any Federal Trade Commission trade regulation rule, without regard to whether the credit repair organization—

15 USC 1679h.

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PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(A) is engaged in commerce; or
‘‘(B) meets any other jurisdictional tests in the Federal
Trade Commission Act.
‘‘(c) STATE ACTION FOR VIOLATIONS.—
‘‘(1) AUTHORITY OF STATES.—In addition to such other remedies as are provided under State law, whenever the chief
law enforcement officer of a State, or an official or agency
designated by a State, has reason to believe that any person
has violated or is violating this title, the State—
‘‘(A) may bring an action to enjoin such violation;
‘‘(B) may bring an action on behalf of its residents
to recover damages for which the person is liable to such
residents under section 409 as a result of the violation;
and
‘‘(C) in the case of any successful action under subparagraph (A) or (B), shall be awarded the costs of the action
and reasonable attorney fees as determined by the court.
‘‘(2) RIGHTS OF COMMISSION.—
‘‘(A) NOTICE TO COMMISSION.—The State shall serve
prior written notice of any civil action under paragraph
(1) upon the Federal Trade Commission and provide the
Commission with a copy of its complaint, except in any
case where such prior notice is not feasible, in which case
the State shall serve such notice immediately upon instituting such action.
‘‘(B) INTERVENTION.—The Commission shall have the
right—
‘‘(i) to intervene in any action referred to in
subparagraph (A);
‘‘(ii) upon so intervening, to be heard on all matters
arising in the action; and
‘‘(iii) to file petitions for appeal.
‘‘(3) INVESTIGATORY POWERS.—For purposes of bringing any
action under this subsection, nothing in this subsection shall
prevent the chief law enforcement officer, or an official or
agency designated by a State, from exercising the powers conferred on the chief law enforcement officer or such official
by the laws of such State to conduct investigations or to administer oaths or affirmations or to compel the attendance of witnesses or the production of documentary and other evidence.
‘‘(4) LIMITATION.—Whenever the Federal Trade Commission
has instituted a civil action for violation of this title, no State
may, during the pendency of such action, bring an action under
this section against any defendant named in the complaint
of the Commission for any violation of this title that is alleged
in that complaint.
15 USC 1679i.

‘‘SEC. 411. STATUTE OF LIMITATIONS.

‘‘Any action to enforce any liability under this title may be
brought before the later of—
‘‘(1) the end of the 5-year period beginning on the date
of the occurrence of the violation involved; or
‘‘(2) in any case in which any credit repair organization
has materially and willfully misrepresented any information
which—
‘‘(A) the credit repair organization is required, by any
provision of this title, to disclose to any consumer; and

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110 STAT. 3009–462

‘‘(B) is material to the establishment of the credit repair
organization’s liability to the consumer under this title,
the end of the 5-year period beginning on the date of the
discovery by the consumer of the misrepresentation.
‘‘SEC. 412. RELATION TO STATE LAW.

15 USC 1679j.

‘‘This title shall not annul, alter, affect, or exempt any person
subject to the provisions of this title from complying with any
law of any State except to the extent that such law is inconsistent
with any provision of this title, and then only to the extent of
the inconsistency.
‘‘SEC. 413. EFFECTIVE DATE.

‘‘This title shall apply after the end of the 6-month period
beginning on the date of the enactment of the Credit Repair
Organizations Act, except with respect to contracts entered into
by a credit repair organization before the end of such period.’’.

15 USC 1679
note.

SEC. 2452. CREDIT WORTHINESS.

It is the sense of the Senate that—
(1) individuals should generally be judged for credit worthiness based on their own credit worthiness and not on the
zip code or neighborhood in which they live; and
(2) the Federal Trade Commission, after consultation with
the appropriate Federal banking agency, should report to the
Committee on Banking, Housing, and Urban Affairs of the
Senate as to whether and how the location of the residence
of an applicant for unsecured credit is considered by many
companies and financial institutions in deciding whether an
applicant should be granted credit.

Subtitle E—Asset Conservation, Lender Liability, and Deposit Insurance Protection
SEC. 2501. SHORT TITLE.

This subtitle may be cited as the ‘‘Asset Conservation, Lender
Liability, and Deposit Insurance Protection Act of 1996’’.
SEC. 2502. CERCLA LENDER AND FIDUCIARY LIABILITY LIMITATIONS
AMENDMENTS.

(a) IN GENERAL.—Section 107 of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42
U.S.C. 9607) is amended by adding at the end the following:
‘‘(n) LIABILITY OF FIDUCIARIES.—
‘‘(1) IN GENERAL.—The liability of a fiduciary under any
provision of this Act for the release or threatened release of
a hazardous substance at, from, or in connection with a vessel
or facility held in a fiduciary capacity shall not exceed the
assets held in the fiduciary capacity.
‘‘(2) EXCLUSION.—Paragraph (1) does not apply to the
extent that a person is liable under this Act independently
of the person’s ownership of a vessel or facility as a fiduciary
or actions taken in a fiduciary capacity.
‘‘(3) LIMITATION.—Paragraphs (1) and (4) do not limit the
liability pertaining to a release or threatened release of a

Asset
Conservation,
Lender Liability,
and Deposit
Insurance
Protection Act of
1996.
42 USC 9601
note.

110 STAT. 3009–463

PUBLIC LAW 104–208—SEPT. 30, 1996

hazardous substance if negligence of a fiduciary causes or
contributes to the release or threatened release.
‘‘(4) SAFE HARBOR.—A fiduciary shall not be liable in its
personal capacity under this Act for—
‘‘(A) undertaking or directing another person to undertake a response action under subsection (d)(1) or under
the direction of an on scene coordinator designated under
the National Contingency Plan;
‘‘(B) undertaking or directing another person to undertake any other lawful means of addressing a hazardous
substance in connection with the vessel or facility;
‘‘(C) terminating the fiduciary relationship;
‘‘(D) including in the terms of the fiduciary agreement
a covenant, warranty, or other term or condition that
relates to compliance with an environmental law, or monitoring, modifying or enforcing the term or condition;
‘‘(E) monitoring or undertaking 1 or more inspections
of the vessel or facility;
‘‘(F) providing financial or other advice or counseling
to other parties to the fiduciary relationship, including
the settlor or beneficiary;
‘‘(G) restructuring, renegotiating, or otherwise altering
the terms and conditions of the fiduciary relationship;
‘‘(H) administering, as a fiduciary, a vessel or facility
that was contaminated before the fiduciary relationship
began; or
‘‘(I) declining to take any of the actions described in
subparagraphs (B) through (H).
‘‘(5) DEFINITIONS.—As used in this Act:
‘‘(A) FIDUCIARY.—The term ‘fiduciary’—
‘‘(i) means a person acting for the benefit of another
party as a bona fide—
‘‘(I) trustee;
‘‘(II) executor;
‘‘(III) administrator;
‘‘(IV) custodian;
‘‘(V) guardian of estates or guardian ad litem;
‘‘(VI) receiver;
‘‘(VII) conservator;
‘‘(VIII) committee of estates of incapacitated
persons;
‘‘(IX) personal representative;
‘‘(X) trustee (including a successor to a trustee)
under an indenture agreement, trust agreement,
lease, or similar financing agreement, for debt
securities, certificates of interest or certificates of
participation in debt securities, or other forms of
indebtedness as to which the trustee is not, in
the capacity of trustee, the lender; or
‘‘(XI) representative in any other capacity that
the Administrator, after providing public notice,
determines to be similar to the capacities described
in subclauses (I) through (X); and
‘‘(ii) does not include—
‘‘(I) a person that is acting as a fiduciary with
respect to a trust or other fiduciary estate that
was organized for the primary purpose of, or is

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110 STAT. 3009–464

engaged in, actively carrying on a trade or business
for profit, unless the trust or other fiduciary estate
was created as part of, or to facilitate, 1 or more
estate plans or because of the incapacity of a natural person; or
‘‘(II) a person that acquires ownership or control of a vessel or facility with the objective purpose
of avoiding liability of the person or of any other
person.
‘‘(B) FIDUCIARY CAPACITY.—The term ‘fiduciary capacity’ means the capacity of a person in holding title to
a vessel or facility, or otherwise having control of or an
interest in the vessel or facility, pursuant to the exercise
of the responsibilities of the person as a fiduciary.
‘‘(6) SAVINGS CLAUSE.—Nothing in this subsection—
‘‘(A) affects the rights or immunities or other defenses
that are available under this Act or other law that is
applicable to a person subject to this subsection; or
‘‘(B) creates any liability for a person or a private
right of action against a fiduciary or any other person.
‘‘(7) NO EFFECT ON CERTAIN PERSONS.—Nothing in this
subsection applies to a person if the person—
‘‘(A)(i) acts in a capacity other than that of a fiduciary
or in a beneficiary capacity; and
‘‘(ii) in that capacity, directly or indirectly benefits
from a trust or fiduciary relationship; or
‘‘(B)(i) is a beneficiary and a fiduciary with respect
to the same fiduciary estate; and
‘‘(ii) as a fiduciary, receives benefits that exceed customary or reasonable compensation, and incidental benefits, permitted under other applicable law.
‘‘(8) LIMITATION.—This subsection does not preclude a claim
under this Act against—
‘‘(A) the assets of the estate or trust administered
by the fiduciary; or
‘‘(B) a nonemployee agent or independent contractor
retained by a fiduciary.’’.
(b) DEFINITION OF OWNER OR OPERATOR.—Section 101(20) of
the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980 (42 U.S.C. 9601(20)) is amended by adding
at the end the following:
‘‘(E) EXCLUSION OF LENDERS NOT PARTICIPANTS IN
MANAGEMENT.—
‘‘(i) INDICIA OF OWNERSHIP TO PROTECT SECURITY.—
The term ‘owner or operator’ does not include a person
that is a lender that, without participating in the
management of a vessel or facility, holds indicia of
ownership primarily to protect the security interest
of the person in the vessel or facility.
‘‘(ii) FORECLOSURE.—The term ‘owner or operator’
does not include a person that is a lender that did
not participate in management of a vessel or facility
prior to foreclosure, notwithstanding that the person—
‘‘(I) forecloses on the vessel or facility; and
‘‘(II) after foreclosure, sells, re-leases (in the
case of a lease finance transaction), or liquidates
the vessel or facility, maintains business activities,

110 STAT. 3009–465

PUBLIC LAW 104–208—SEPT. 30, 1996
winds up operations, undertakes a response action
under section 107(d)(1) or under the direction of
an on-scene coordinator appointed under the
National Contingency Plan, with respect to the
vessel or facility, or takes any other measure to
preserve, protect, or prepare the vessel or facility
prior to sale or disposition,
if the person seeks to sell, re-lease (in the case of
a lease finance transaction), or otherwise divest the
person of the vessel or facility at the earliest practicable, commercially reasonable time, on commercially
reasonable terms, taking into account market conditions and legal and regulatory requirements.
‘‘(F) PARTICIPATION IN MANAGEMENT.—For purposes of
subparagraph (E)—
‘‘(i) the term ‘participate in management’—
‘‘(I) means actually participating in the
management or operational affairs of a vessel or
facility; and
‘‘(II) does not include merely having the capacity to influence, or the unexercised right to control,
vessel or facility operations;
‘‘(ii) a person that is a lender and that holds indicia
of ownership primarily to protect a security interest
in a vessel or facility shall be considered to participate
in management only if, while the borrower is still
in possession of the vessel or facility encumbered by
the security interest, the person—
‘‘(I) exercises decisionmaking control over the
environmental compliance related to the vessel or
facility, such that the person has undertaken
responsibility for the hazardous substance handling or disposal practices related to the vessel
or facility; or
‘‘(II) exercises control at a level comparable
to that of a manager of the vessel or facility, such
that the person has assumed or manifested responsibility—
‘‘(aa) for the overall management of the
vessel or facility encompassing day-to-day
decisionmaking with respect to environmental
compliance; or
‘‘(bb) over all or substantially all of the
operational functions (as distinguished from
financial or administrative functions) of the
vessel or facility other than the function of
environmental compliance;
‘‘(iii) the term ‘participate in management’ does
not include performing an act or failing to act prior
to the time at which a security interest is created
in a vessel or facility; and
‘‘(iv) the term ‘participate in management’ does
not include—
‘‘(I) holding a security interest or abandoning
or releasing a security interest;
‘‘(II) including in the terms of an extension
of credit, or in a contract or security agreement

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–466

relating to the extension, a covenant, warranty,
or other term or condition that relates to environmental compliance;
‘‘(III) monitoring or enforcing the terms and
conditions of the extension of credit or security
interest;
‘‘(IV) monitoring or undertaking 1 or more
inspections of the vessel or facility;
‘‘(V) requiring a response action or other lawful
means of addressing the release or threatened
release of a hazardous substance in connection
with the vessel or facility prior to, during, or on
the expiration of the term of the extension of credit;
‘‘(VI) providing financial or other advice or
counseling in an effort to mitigate, prevent, or
cure default or diminution in the value of the
vessel or facility;
‘‘(VII) restructuring, renegotiating, or otherwise agreeing to alter the terms and conditions
of the extension of credit or security interest,
exercising forbearance;
‘‘(VIII) exercising other remedies that may be
available under applicable law for the breach of
a term or condition of the extension of credit or
security agreement; or
‘‘(IX) conducting a response action under section 107(d) or under the direction of an on-scene
coordinator appointed under the National Contingency Plan,
if the actions do not rise to the level of participating
in management (within the meaning of clauses (i) and
(ii)).
‘‘(G) OTHER TERMS.—As used in this Act:
‘‘(i) EXTENSION OF CREDIT.—The term ‘extension
of credit’ includes a lease finance transaction—
‘‘(I) in which the lessor does not initially select
the leased vessel or facility and does not during
the lease term control the daily operations or
maintenance of the vessel or facility; or
‘‘(II) that conforms with regulations issued by
the appropriate Federal banking agency or the
appropriate State bank supervisor (as those terms
are defined in section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813) or with regulations
issued by the National Credit Union Administration Board, as appropriate.
‘‘(ii) FINANCIAL OR ADMINISTRATIVE FUNCTION.—
The term ‘financial or administrative function’ includes
a function such as that of a credit manager, accounts
payable officer, accounts receivable officer, personnel
manager, comptroller, or chief financial officer, or a
similar function.
‘‘(iii) FORECLOSURE; FORECLOSE.—The terms ‘foreclosure’ and ‘foreclose’ mean, respectively, acquiring,
and to acquire, a vessel or facility through—

110 STAT. 3009–467

PUBLIC LAW 104–208—SEPT. 30, 1996
‘‘(I)(aa) purchase at sale under a judgment
or decree, power of sale, or nonjudicial foreclosure
sale;
‘‘(bb) a deed in lieu of foreclosure, or similar
conveyance from a trustee; or
‘‘(cc) repossession,
if the vessel or facility was security for an extension
of credit previously contracted;
‘‘(II) conveyance pursuant to an extension of
credit previously contracted, including the termination of a lease agreement; or
‘‘(III) any other formal or informal manner
by which the person acquires, for subsequent disposition, title to or possession of a vessel or facility
in order to protect the security interest of the
person.
‘‘(iv) LENDER.—The term ‘lender’ means—
‘‘(I) an insured depository institution (as
defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813));
‘‘(II) an insured credit union (as defined in
section 101 of the Federal Credit Union Act (12
U.S.C. 1752));
‘‘(III) a bank or association chartered under
the Farm Credit Act of 1971 (12 U.S.C. 2001 et
seq.);
‘‘(IV) a leasing or trust company that is an
affiliate of an insured depository institution;
‘‘(V) any person (including a successor or
assignee of any such person) that makes a bona
fide extension of credit to or takes or acquires
a security interest from a nonaffiliated person;
‘‘(VI) the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Federal Agricultural Mortgage Corporation, or any other entity that in a bona fide manner
buys or sells loans or interests in loans;
‘‘(VII) a person that insures or guarantees
against a default in the repayment of an extension
of credit, or acts as a surety with respect to an
extension of credit, to a nonaffiliated person; and
‘‘(VIII) a person that provides title insurance
and that acquires a vessel or facility as a result
of assignment or conveyance in the course of
underwriting claims and claims settlement.
‘‘(v) OPERATIONAL FUNCTION.—The term ‘operational function’ includes a function such as that of
a facility or plant manager, operations manager, chief
operating officer, or chief executive officer.
‘‘(vi) SECURITY INTEREST.—The term ‘security
interest’ includes a right under a mortgage, deed of
trust, assignment, judgment lien, pledge, security
agreement, factoring agreement, or lease and any other
right accruing to a person to secure the repayment
of money, the performance of a duty, or any other
obligation by a nonaffiliated person.’’.

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110 STAT. 3009–468

SEC. 2503. CONFORMING AMENDMENT.

Section 9003(h) of the Solid Waste Disposal Act (42 U.S.C.
6991b(h)) is amended by striking paragraph (9) and inserting the
following:
‘‘(9) DEFINITION OF OWNER OR OPERATOR.—
‘‘(A) IN GENERAL.—As used in this subtitle, the terms
‘owner’ and ‘operator’ do not include a person that, without
participating in the management of an underground storage tank and otherwise not engaged in petroleum production, refining, or marketing, holds indicia of ownership
primarily to protect the person’s security interest.
‘‘(B) SECURITY INTEREST HOLDERS.—The provisions
regarding holders of security interests in subparagraphs
(E) through (G) of section 101(20) and the provisions
regarding fiduciaries at section 107(n) of the Comprehensive Environmental Response, Compensation, and Liability
Act of 1980 shall apply in determining a person’s liability
as an owner or operator of an underground storage tank
for the purposes of this subtitle.
‘‘(C) EFFECT ON RULE.—Nothing in subparagraph (B)
shall be construed as modifying or affecting the final rule
issued by the Administrator on September 7, 1995 (60
Fed. Reg. 46,692), or as limiting the authority of the
Administrator to amend the final rule, in accordance with
applicable law. The final rule in effect on the date of
enactment of this subparagraph shall prevail over any
inconsistent provision regarding holders of security
interests in subparagraphs (E) through (G) of section
101(20) or any inconsistent provision regarding fiduciaries
in section 107(n) of the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980. Any
amendment to the final rule shall be consistent with the
provisions regarding holders of security interests in subparagraphs (E) through (G) of section 101(20) and the
provisions regarding fiduciaries in section 107(n) of the
Comprehensive Environmental Response, Compensation,
and Liability Act of 1980. This subparagraph does not
preclude judicial review of any amendment of the final
rule made after the date of enactment of this subparagraph.’’.
SEC. 2504. LENDER LIABILITY RULE.

(a) IN GENERAL.—Effective on the date of enactment of this
Act, the portion of the final rule issued by the Administrator of
the Environmental Protection Agency on April 29, 1992 (57 Fed.
Reg. 18,344), prescribing section 300.1105 of title 40, Code of Federal Regulations, shall be deemed to have been validly issued under
authority of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et seq.) and
to have been effective according to the terms of the final rule.
No additional judicial proceedings shall be necessary or may be
held with respect to such portion of the final rule. Any reference
in that portion of the final rule to section 300.1100 of title 40,
Code of Federal Regulations, shall be deemed to be a reference
to the amendments made by this subtitle.
(b) JUDICIAL REVIEW.—Notwithstanding section 113(a) of the
Comprehensive Environmental Response, Compensation, and

110 STAT. 3009–469

PUBLIC LAW 104–208—SEPT. 30, 1996

Liability Act of 1980 (42 U.S.C. 9613(a)), no court shall have jurisdiction to review the portion of the final rule issued by the Administrator of the Environmental Protection Agency on April 29, 1992
(57 Fed. Reg. 18,344) that prescribed section 300.1105 of title 40,
Code of Federal Regulations.
(c) AMENDMENT.—No provision of this section shall be construed
as limiting the authority of the President or a delegee of the
President to amend the portion of the final rule issued by the
Administrator of the Environmental Protection Agency on April
29, 1992 (57 Fed. Reg. 18,344), prescribing section 300.1105 of
title 40, Code of Federal Regulations, consistent with the amendments made by this subtitle and other applicable law.
(d) JUDICIAL REVIEW.—No provision of this section shall be
construed as precluding judicial review of any amendment of section
300.1105 of title 40, Code of Federal Regulations, made after the
date of enactment of this Act.
42 USC 6991b
note.

SEC. 2505. EFFECTIVE DATE.

The amendments made by this subtitle shall be applicable
with respect to any claim that has not been finally adjudicated
as of the date of enactment of this Act.

Subtitle F—Miscellaneous
SEC. 2601. FEDERAL RESERVE BOARD STUDY.

(a) STUDY OF ELECTRONIC STORED VALUE PRODUCTS.—
(1) STUDY.—The Board shall conduct a study of electronic
stored value products which evaluates whether provisions of
the Electronic Fund Transfer Act could be applied to such
products without adversely impacting the cost, development,
and operation of such products.
(2) CONSIDERATIONS.—In conducting its study under paragraph (1), the Board shall consider whether alternatives to
regulation under the Electronic Fund Transfer Act, such as
allowing competitive market forces to shape the development
and operation of electronic stored value products, could more
efficiently achieve the objectives embodied in that Act.
(b) REPORT.—The Board shall submit a report of its study
under subsection (a) to the Congress not later than 6 months
after the date of enactment of this Act.
(c) ACTION TO FINALIZE.—The Board shall take no action to
finalize any amendments to regulations under the Electronic Fund
Transfer Act that would regulate electronic stored value products
until the later of—
(1) 3 months after the date on which the report is submitted
to the Congress under subsection (b); or
(2) 9 months after the date of enactment of this Act.
SEC. 2602. TREATMENT OF CLAIMS ARISING FROM BREACH OF CONTRACTS EXECUTED BY THE RECEIVER OR CONSERVATOR.

Section 11(d) of the Federal Deposit Insurance Act (12 U.S.C.
1821(d)) is amended by adding at the end the following new paragraph:
‘‘(20) TREATMENT OF CLAIMS ARISING FROM BREACH OF CONTRACTS EXECUTED BY THE RECEIVER OR CONSERVATOR.—Notwithstanding any other provision of this subsection, any final

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110 STAT. 3009–470

and unappealable judgment for monetary damages entered
against a receiver or conservator for an insured depository
institution for the breach of an agreement executed or approved
by such receiver or conservator after the date of its appointment
shall be paid as an administrative expense of the receiver
or conservator. Nothing in this paragraph shall be construed
to limit the power of a receiver or conservator to exercise
any rights under contract or law, including to terminate, breach,
cancel, or otherwise discontinue such agreement.’’.
SEC.

2603.

CRIMINAL SANCTIONS FOR FICTITIOUS
INSTRUMENTS AND COUNTERFEITING.

FINANCIAL

(a) INCREASED PENALTIES FOR COUNTERFEITING VIOLATIONS.—
Sections 474 and 474A of title 18, United States Code, are amended
by striking ‘‘class C felony’’ each place that term appears and
inserting ‘‘class B felony’’.
(b) CRIMINAL PENALTY FOR PRODUCTION, SALE, TRANSPORTATION, POSSESSION OF FICTITIOUS FINANCIAL INSTRUMENTS
PURPORTING TO BE THOSE OF THE STATES, OF POLITICAL SUBDIVISIONS, AND OF PRIVATE ORGANIZATIONS.—
(1) IN GENERAL.—Chapter 25 of title 18, United States
Code, is amended by inserting after section 513, the following
new section:
‘‘§ 514. Fictitious obligations
‘‘(a) Whoever, with the intent to defraud—
‘‘(1) draws, prints, processes, produces, publishes, or otherwise makes, or attempts or causes the same, within the United
States;
‘‘(2) passes, utters, presents, offers, brokers, issues, sells,
or attempts or causes the same, or with like intent possesses,
within the United States; or
‘‘(3) utilizes interstate or foreign commerce, including the
use of the mails or wire, radio, or other electronic communication, to transmit, transport, ship, move, transfer, or attempts
or causes the same, to, from, or through the United States,
any false or fictitious instrument, document, or other item appearing, representing, purporting, or contriving through scheme or artifice, to be an actual security or other financial instrument issued
under the authority of the United States, a foreign government,
a State or other political subdivision of the United States, or an
organization, shall be guilty of a class B felony.
‘‘(b) For purposes of this section, any term used in this section
that is defined in section 513(c) has the same meaning given such
term in section 513(c).
‘‘(c) The United States Secret Service, in addition to any other
agency having such authority, shall have authority to investigate
offenses under this section.’’.
(2) TECHNICAL AMENDMENT.—The analysis for chapter 25
of title 18, United States Code, is amended by inserting after
the item relating to section 513 the following:
‘‘514. Fictitious obligations.’’.
SEC. 2604. AMENDMENTS TO THE TRUTH IN SAVINGS ACT.

(a) REPEAL.—Effective as of the end of the 5-year period beginning on the date of the enactment of this Act, section 271 of
the Truth in Savings Act (12 U.S.C. 4310) is repealed.

110 STAT. 3009–471

PUBLIC LAW 104–208—SEPT. 30, 1996

(b) ON-PREMISES DISPLAYS.—Section 263(c) of the Truth in
Savings Act (12 U.S.C. 4302(c)) is amended—
(1) by striking paragraph (2);
(2) by striking ‘‘(1) IN GENERAL.—’’; and
(3) by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively, and indenting appropriately.
(c) DEPOSITORY INSTITUTION DEFINITION.—Section 274(6) of the
Truth in Savings Act (12 U.S.C. 4313(6)) is amended by inserting
before the period ‘‘, but does not include any nonautomated credit
union that was not required to comply with the requirements of
this title as of the date of enactment of the Economic Growth
and Regulatory Paperwork Reduction Act of 1996, pursuant to
the determination of the National Credit Union Administration
Board’’.
(d) TIME DEPOSITS.—Section 266(a)(3) of the Truth in Savings
Act (12 U.S.C. 4305(a)(3)) is amended by inserting ‘‘has a maturity
of more than 30 days’’ after ‘‘deposit which’’.
15 USC 1667
note.

SEC. 2605. CONSUMER LEASING ACT AMENDMENTS.

(a) CONGRESSIONAL FINDINGS

AND

DECLARATION

OF

PUR-

POSES.—

(1) FINDINGS.—The Congress finds that—
(A) competition among the various financial institutions and other firms engaged in the business of consumer
leasing is greatest when there is informed use of leasing;
(B) the informed use of leasing results from an awareness of the cost of leasing by consumers; and
(C) there has been a continued trend toward leasing
automobiles and other durable goods for consumer use
as an alternative to installment credit sales and that leasing product advances have occurred such that lessors have
been unable to provide consistent industry-wide disclosures
to fully account for the competitive progress that has
occurred.
(2) PURPOSES.—The purposes of this section are—
(A) to assure a simple, meaningful disclosure of leasing
terms so that the consumer will be able to compare more
readily the various leasing terms available to the consumer
and avoid the uninformed use of leasing, and to protect
the consumer against inaccurate and unfair leasing practices;
(B) to provide for adequate cost disclosures that reflect
the marketplace without impairing competition and the
development of new leasing products; and
(C) to provide the Board with the regulatory authority
to assure a simplified, meaningful definition and disclosure
of the terms of certain leases of personal property for
personal, family, or household purposes so as to—
(i) enable the lessee to compare more readily the
various lease terms available to the lessee;
(ii) enable comparison of lease terms with credit
terms, as appropriate; and
(iii) assure meaningful and accurate disclosures
of lease terms in advertisements.
(b) REGULATIONS.—

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–472

(1) IN GENERAL.—Chapter 5 of the Truth in Lending Act
(15 U.S.C. 1667 et seq.) is amended by adding at the end
the following new section:
‘‘SEC. 187. REGULATIONS.

‘‘(a) REGULATIONS AUTHORIZED.—
‘‘(1) IN GENERAL.—The Board shall prescribe regulations
to update and clarify the requirements and definitions
applicable to lease disclosures and contracts, and any other
issues specifically related to consumer leasing, to the extent
that the Board determines such action to be necessary—
‘‘(A) to carry out this chapter;
‘‘(B) to prevent any circumvention of this chapter; or
‘‘(C) to facilitate compliance with the requirements of
the chapter.
‘‘(2) CLASSIFICATIONS, ADJUSTMENTS.—Any regulations prescribed under paragraph (1) may contain classifications and
differentiations, and may provide for adjustments and exceptions for any class of transactions, as the Board considers
appropriate.
‘‘(b) MODEL DISCLOSURE.—
‘‘(1) PUBLICATION.—The Board shall establish and publish
model disclosure forms to facilitate compliance with the disclosure requirements of this chapter and to aid the consumer
in understanding the transaction to which the subject disclosure
form relates.
‘‘(2) USE OF AUTOMATED EQUIPMENT.—In establishing model
forms under this subsection, the Board shall consider the use
by lessors of data processing or similar automated equipment.
‘‘(3) USE OPTIONAL.—A lessor may utilize a model disclosure
form established by the Board under this subsection for purposes of compliance with this chapter, at the discretion of
the lessor.
‘‘(4) EFFECT OF USE.—Any lessor who properly uses the
material aspects of any model disclosure form established by
the Board under this subsection shall be deemed to be in
compliance with the disclosure requirements to which the form
relates.’’.
(2) EFFECTIVE DATE.—
(A) IN GENERAL.—Any regulation of the Board, or any
amendment or interpretation of any regulation of the Board
issued pursuant to section 187 of the Truth in Lending
Act (as added by paragraph (1) of this subsection), shall
become effective on the first October 1 that follows the
date of promulgation of that regulation, amendment, or
interpretation by not less than 6 months.
(B) LONGER PERIOD.—The Board may, at the discretion
of the Board, extend the time period referred to in subparagraph (A) in accordance with subparagraph (C), to permit
lessors to adjust their disclosure forms to accommodate
the requirements of section 127 of the Truth in Lending
Act (as added by paragraph (1) of this subsection).
(C) SHORTER PERIOD.—The Board may shorten the time
period referred to in subparagraph (A), if the Board makes
a specific finding that such action is necessary to comply
with the findings of a court or to prevent an unfair or
deceptive practice.

15 USC 1667f.

15 USC 1667f
note.

110 STAT. 3009–473

PUBLIC LAW 104–208—SEPT. 30, 1996

(D) COMPLIANCE BEFORE EFFECTIVE DATE.—Any lessor
may comply with any means of disclosure provided for
in section 127 of the Truth in Lending Act (as added
by paragraph (1) of this subsection) before the effective
date of such requirement.
(E) DEFINITIONS.—For purposes of this subsection, the
term ‘‘lessor’’ has the same meaning as in section 181
of the Truth in Lending Act.
(3) CLERICAL AMENDMENT.—The table of sections for chapter 5 of title I of the Truth in Lending Act (15 U.S.C. 1601
et seq.) is amended by inserting after the item relating to
section 186 the following new item:
‘‘187. Regulations.’’.

(c) CONSUMER LEASE ADVERTISING.—Section 184 of the Truth
in Lending Act (15 U.S.C. 1667c) is amended—
(1) by striking subsections (a) and (c);
(2) by redesignating subsection (b) as subsection (c); and
(3) by inserting before subsection (c), as so redesignated,
the following:
‘‘(a) IN GENERAL.—If an advertisement for a consumer lease
includes a statement of the amount of any payment or a statement
that any or no initial payment is required, the advertisement shall
clearly and conspicuously state, as applicable—
‘‘(1) the transaction advertised is a lease;
‘‘(2) the total amount of any initial payments required
on or before consummation of the lease or delivery of the
property, whichever is later;
‘‘(3) that a security deposit is required;
‘‘(4) the number, amount, and timing of scheduled payments; and
‘‘(5) with respect to a lease in which the liability of the
consumer at the end of the lease term is based on the anticipated residual value of the property, that an extra charge
may be imposed at the end of the lease term.
‘‘(b) ADVERTISING MEDIUM NOT LIABLE.—No owner or employee
of any entity that serves as a medium in which an advertisement
appears or through which an advertisement is disseminated, shall
be liable under this section.’’.
12 USC 1752a
note.

SEC. 2606. STUDY OF CORPORATE CREDIT UNIONS.

(a) DEFINITIONS.—For purposes of this section, the following
definitions shall apply:
(1) ADMINISTRATION.—The term ‘‘Administration’’ means
the National Credit Union Administration.
(2) BOARD.—The term ‘‘Board’’ means the National Credit
Union Administration Board.
(3) CORPORATE CREDIT UNION.—The term ‘‘corporate credit
union’’ has the meaning given such term by rule or regulation
of the Board.
(4) FUND.—The term ‘‘Fund’’ means the National Credit
Union Share Insurance Fund established under section 203
of the Federal Credit Union Act.
(5) SECRETARY.—The term ‘‘Secretary’’ means the Secretary
of the Treasury.
(b) STUDY.—

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–474

(1) IN GENERAL.—The Secretary, in consultation with the
Board, the Corporation, the Comptroller of the Currency, and
the Administration, shall conduct a study and evaluation of—
(A) the oversight and supervisory practices of the
Administration concerning the Fund, including the treatment of amounts deposited in the Fund pursuant to section
202(c) of the Federal Credit Union Act, including analysis
of—
(i) whether those amounts should be—
(I) refundable; or
(II) treated as expenses; and
(ii) the use of those amounts in determining equity
capital ratios;
(B) the potential for, and potential effects of, administration of the Fund by an entity other than the Administration;
(C) the 10 largest corporate credit unions in the United
States, conducted in cooperation with appropriate employees of other Federal agencies with expertise in the examination of federally insured financial institutions, including—
(i) the investment practices of those credit unions;
and
(ii) the financial stability, financial operations, and
financial controls of those credit unions;
(D) the regulations of the Administration; and
(E) the supervision of corporate credit unions by the
Administration.
(c) REPORT.—Not later than 12 months after the date of enactment of this Act, the Secretary shall submit to the appropriate
committees of the Congress, a report that includes the results
of the study and evaluation conducted under subsection (b), together
with any recommendations that the Secretary considers to be appropriate.
SEC. 2607. REPORT ON THE RECONCILIATION OF DIFFERENCES
BETWEEN REGULATORY ACCOUNTING PRINCIPLES AND
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.

Not later than 180 days after the date of enactment of this
Act, each appropriate Federal banking agency shall submit to the
Committee on Banking and Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate, a report describing both the actions
that have been taken by the agency and the actions that will
be taken by the agency to eliminate or conform inconsistent or
duplicative accounting and reporting requirements applicable to
reports or statements filed with any such agency by insured depository institutions, as required by section 121 of the Federal Deposit
Insurance Corporation Improvement Act of 1991.
SEC. 2608. STATE-BY-STATE AND METROPOLITAN AREA-BY-METROPOLITAN AREA STUDY OF BANK FEES.

Section 1002(b)(2)(A) of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811 note) is
amended to read as follows:
‘‘(A) a description of any discernible trend, in the
Nation as a whole, in each of the 50 States, and in each
consolidated metropolitan statistical area or primary metropolitan statistical area (as defined by the Director of the

110 STAT. 3009–475

PUBLIC LAW 104–208—SEPT. 30, 1996
Office of Management and Budget), in the cost and availability of retail banking services (including fees imposed
for providing such services), that delineates differences
between insured depository institutions on the basis of
both the size of the institution and any engagement of
the institution in multistate activity; and’’.

SEC. 2609. PROSPECTIVE APPLICATION OF GOLD CLAUSES IN CONTRACTS.

Section 5118(d)(2) of title 31, United States Code, is amended
by adding at the end the following: ‘‘This paragraph shall apply
to any obligation issued on or before October 27, 1977, notwithstanding any assignment or novation of such obligation after October
27, 1977, unless all parties to the assignment or novation specifically agree to include a gold clause in the new agreement. Nothing
in the preceding sentence shall be construed to affect the enforceability of a Gold Clause contained in any obligation issued after
October 27, 1977 if the enforceability of that Gold Clause has
been finally adjudicated before the date of enactment of the Economic Growth and Regulatory Paperwork Reduction Act of 1996.’’.
SEC. 2610. QUALIFIED FAMILY PARTNERSHIPS.

Section 2 of the Bank Holding Company Act of 1956 (12 U.S.C.
1841) is amended—
(1) in subsection (b), by inserting ‘‘, and shall not include
a qualified family partnership’’ after ‘‘by any State’’; and
(2) in subsection (o), by adding at the end the following:
‘‘(10) QUALIFIED FAMILY PARTNERSHIP.—The term ‘qualified
family partnership’ means a general or limited partnership
that the Board determines—
‘‘(A) does not directly control any bank, except through
a registered bank holding company;
‘‘(B) does not control more than 1 registered bank
holding company;
‘‘(C) does not engage in any business activity, except
indirectly through ownership of other business entities;
‘‘(D) has no investments other than those permitted
for a bank holding company pursuant to section 4(c);
‘‘(E) is not obligated on any debt, either directly or
as a guarantor;
‘‘(F) has partners, all of whom are either—
‘‘(i) individuals related to each other by blood, marriage (including former marriage), or adoption; or
‘‘(ii) trusts for the primary benefit of individuals
related as described in clause (i); and
‘‘(G) has filed with the Board a statement that
includes—
‘‘(i) the basis for the eligibility of the partnership
under subparagraph (F);
‘‘(ii) a list of the existing activities and investments
of the partnership;
‘‘(iii) a commitment to comply with this paragraph;
‘‘(iv) a commitment to comply with section 7 of
the Federal Deposit Insurance Act with respect to any
acquisition of control of an insured depository institution occurring after date of enactment of this paragraph; and

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–476

‘‘(v) a commitment to be subject, to the same extent
as if the qualified family partnership were a bank
holding company—
‘‘(I) to examination by the Board to assure
compliance with this paragraph; and
‘‘(II) to section 8 of the Federal Deposit Insurance Act.’’.
SEC. 2611. COOPERATIVE EFFORTS BETWEEN DEPOSITORY INSTITUTIONS AND FARMERS AND RANCHERS IN DROUGHTSTRICKEN AREAS.

(a) FINDINGS.—The Congress hereby finds the following:
(1) Severe drought is being experienced in the Plains and
the Southwest portions of our country.
(2) Soil erosion is becoming a critical issue as the dry
season approaches and summer winds may rob these fields
of nutrient-rich topsoil.
(3) Without immediate assistance, ranchers and farmers
would be forced to cull their herds bringing tremendous volatility in the beef market.
(4) The American people will feel the impact of this drought
in their pocketbooks through higher prices for grain products.
(5) The communities in drought-stricken areas are suffering
and borrowers may have difficulty meeting their obligations
to financial institutions.
(6) Congress has already passed the Depository Institutions
Disaster Relief Act of 1992 which allows financial institutions
to make emergency exceptions to the appraisal requirement
in times of national disasters.
(b) SENSE OF THE CONGRESS.—It is the sense of the Congress
that financial institutions and Federal bank regulators should work
cooperatively with farmers and ranchers in communities affected
by drought conditions to allow financial obligations to be met without imposing undue burdens.
SEC. 2612. STREAMLINING PROCESS FOR DETERMINING NEW NONBANKING ACTIVITIES.

Section 4(c)(8) of the Bank Holding Company Act of 1956 (12
U.S.C. 1843(c)(8)) is amended by striking ‘‘and opportunity for hearing’’ and inserting the following: ‘‘(and opportunity for hearing
in the case of an acquisition of a savings association)’’.
SEC. 2613. AUTHORIZING BANK SERVICE COMPANIES TO ORGANIZE
AS LIMITED LIABILITY COMPANIES.

(a) AMENDMENT TO SHORT TITLE.—Section 1 of the Bank Service
Corporation Act (12 U.S.C. 1861(a)) is amended by striking subsection (a) and inserting the following new subsection:
‘‘(a) SHORT TITLE.—This Act may be cited as the ‘Bank Service
Company Act’.’’;
(b) AMENDMENTS TO DEFINITIONS.—Section 1(b) of the Bank
Service Corporation Act (12 U.S.C. 1861(b)) is amended—
(1) by striking paragraph (2) and inserting the following
new paragraph:
‘‘(2) the term ‘bank service company’ means—
‘‘(A) any corporation—
‘‘(i) which is organized to perform services authorized by this Act; and

110 STAT. 3009–477

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(ii) all of the capital stock of which is owned
by 1 or more insured banks; and
‘‘(B) any limited liability company—
‘‘(i) which is organized to perform services authorized by this Act; and
‘‘(ii) all of the members of which are 1 or more
insured banks.’’;
(2) in paragraph (6)—
(A) by striking ‘‘corporation’’ and inserting ‘‘company’’;
and
(B) by striking ‘‘and’’ after the semicolon;
(3) by redesignating paragraph (7) as paragraph (8) and
inserting after paragraph (6) the following new paragraph:
‘‘(7) the term ‘limited liability company’ means any company, partnership, trust, or similar business entity organized
under the law of a State (as defined in section 3 of the Federal
Deposit Insurance Act) which provides that a member or manager of such company is not personally liable for a debt, obligation, or liability of the company solely by reason of being,
or acting as, a member or manager of such company; and’’;
and
(4) in paragraph (8) (as so redesignated)—
(A) by striking ‘‘corporation’’ each place such term
appears and inserting ‘‘company’’; and
(B) by striking ‘‘capital stock’’ and inserting ‘‘equity’’.
(c) AMENDMENTS TO SECTION 2.—Section 2 of the Bank Service
Corporation Act (12 U.S.C. 1862) is amended—
(1) by striking ‘‘corporation’’ and inserting ‘‘company’’;
(2) by striking ‘‘corporations’’ and inserting ‘‘companies’’;
and
(3) in the heading for such section, by striking ‘‘CORPORATION’’ and inserting ‘‘COMPANY’’.
(d) AMENDMENTS TO SECTION 3.—Section 3 of the Bank Service
Corporation Act (12 U.S.C. 1863) is amended—
(1) by striking ‘‘corporation’’ each place such term appears
and inserting ‘‘company’’; and
(2) in the heading for such section, by striking ‘‘CORPORATION’’ and inserting ‘‘COMPANY’’.
(e) AMENDMENTS TO SECTION 4.—Section 4 of the Bank Service
Corporation Act (12 U.S.C. 1864) is amended—
(1) by striking ‘‘corporation’’ each place such term appears
and inserting ‘‘company’’;
(2) in subsection (b), by inserting ‘‘or members’’ after ‘‘shareholders’’ each place such term appears;
(3) in subsections (c) and (d), by inserting ‘‘or member’’
after ‘‘shareholder’’ each place such term appears;
(4) in subsection (e)—
(A) by inserting ‘‘or members’’ after ‘‘national bank
and State bank shareholders’’;
(B) by striking ‘‘its national bank shareholder or shareholders’’ and inserting ‘‘any shareholder or member of the
company which is a national bank’’;
(C) by striking ‘‘its State bank shareholder or shareholders’’ and inserting ‘‘any shareholder or member of the
company which is a State bank’’;
(D) by striking ‘‘such State bank or banks’’ and inserting ‘‘any such State bank’’; and

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–478

(E) by inserting ‘‘or members’’ after ‘‘State bank and
national bank shareholders’’; and
(5) in the heading for such section, by striking ‘‘CORPORATION’’ and inserting ‘‘COMPANY’’.
(f) AMENDMENTS TO SECTION 5.—Section 5 of the Bank Service
Corporation Act (12 U.S.C. 1865) is amended—
(1) by striking ‘‘corporation’’ each place such term appears
and inserting ‘‘company’’; and
(2) in the heading for such section, by striking ‘‘CORPORATIONS’’ and inserting ‘‘COMPANIES’’.
(g) AMENDMENTS TO SECTION 6.—Section 6 of the Bank Service
Corporation Act (12 U.S.C. 1866) is amended—
(1) by striking ‘‘corporation’’ each place such term appears
and inserting ‘‘company’’;
(2) by inserting ‘‘or is not a member of’’ after ‘‘does not
own stock in’’;
(3) by striking ‘‘the nonstockholding institution’’ and inserting ‘‘such depository institution’’;
(4) by inserting ‘‘or is a member of’’ after ‘‘that owns stock
in’’;
(5) in paragraphs (1) and (2), by inserting ‘‘or nonmember’’
after ‘‘nonstockholding’’; and
(6) in the heading for such section by inserting ‘‘OR NONMEMBERS’’ after ‘‘NONSTOCKHOLDERS’’.
(h) AMENDMENTS TO SECTION 7.—Section 7 of the Bank Service
Corporation Act (12 U.S.C. 1867) is amended—
(1) by striking ‘‘corporation’’ each place such term appears
and inserting ‘‘company’’;
(2) in subsection (a)—
(A) by inserting ‘‘or principal member’’ after ‘‘principal
shareholder’’; and
(B) by inserting ‘‘or member’’ after ‘‘other shareholder’’;
and
(3) in the heading for such section, by striking ‘‘CORPORATIONS’’ and inserting ‘‘COMPANIES’’.
SEC. 2614. RETIREMENT CERTIFICATES OF DEPOSITS.

(a) IN GENERAL.—Section 3(l)(5) of the Federal Deposit Insurance Act (12 U.S.C. 1813(l)(5) is amended—
(1) in subparagraph (A), by striking ‘‘and’’ at the end;
(2) in subparagraph (B), by striking the period at the
end and inserting ‘‘; and’’; and
(3) by adding at the end the following new subparagraph:
‘‘(C) any liability of an insured depository institution
that arises under an annuity contract, the income of which
is tax deferred under section 72 of the Internal Revenue
Code of 1986.’’.
(b) EFFECTIVE DATE.—The amendments made by subsection
(a) shall apply to any liability of an insured depository that arises
under an annuity contract issued on or after the date of enactment
of this Act.
SEC. 2615. PROHIBITIONS ON CERTAIN DEPOSITORY INSTITUTION
ASSOCIATIONS WITH GOVERNMENT-SPONSORED ENTERPRISES.

(a) CREDIT UNIONS.—Section 201 of the Federal Credit Union
Act (12 U.S.C. 1781) is amended by adding at the end the following
new subsection:

12 USC 1813
note.

110 STAT. 3009–479

12 USC 1781
note.

Deposit
Insurance Funds
Act of 1996.
12 USC 1811
note.

12 USC 1817
note.

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(e) PROHIBITION ON CERTAIN ASSOCIATIONS.—
‘‘(1) IN GENERAL.—No insured credit union may be sponsored by or accept financial support, directly or indirectly, from
any Government-sponsored enterprise, if the credit union
includes the customers of the Government-sponsored enterprise
in the field of membership of the credit union.
‘‘(2) ROUTINE BUSINESS FINANCING.—Paragraph (1) shall
not apply with respect to advances or other forms of financial
assistance generally provided by a Government-sponsored
enterprise in the ordinary course of business of the enterprise.
‘‘(3) GOVERNMENT-SPONSORED ENTERPRISE DEFINED.—For
purposes of this subsection, the term ‘Government-sponsored
enterprise’ has the meaning given to such term in section
1404(e)(1)(A) of the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989.
‘‘(4) EMPLOYEE CREDIT UNION.—No provision of this subsection shall be construed as prohibiting any employee of a
Government-sponsored enterprise from becoming a member of
a credit union whose field of membership is the employees
of such enterprise.’’.
(b) BANKS AND SAVINGS ASSOCIATIONS.—Section 18 of the Federal Deposit Insurance Act (12 U.S.C. 1828) is amended by adding
at the end the following new subsection:
‘‘(s) PROHIBITION ON CERTAIN AFFILIATIONS.—
‘‘(1) IN GENERAL.—No depository institution may be an
affiliate of, be sponsored by, or accept financial support, directly
or indirectly, from any Government-sponsored enterprise.
‘‘(2) EXCEPTION FOR MEMBERS OF A FEDERAL HOME LOAN
BANK.—Paragraph (1) shall not apply with respect to the membership of a depository institution in a Federal home loan
bank.
‘‘(3) ROUTINE BUSINESS FINANCING.—Paragraph (1) shall
not apply with respect to advances or other forms of financial
assistance provided by a Government-sponsored enterprise
pursuant to the statutes governing such enterprise.
‘‘(4) GOVERNMENT-SPONSORED ENTERPRISE DEFINED.—For
purposes of this subsection, the term ‘Government-sponsored
enterprise’ has the meaning given to such term in section
1404(e)(1)(A) of the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989.’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply on and after January 1, 1996.

Subtitle G—Deposit Insurance Funds
SEC. 2701. SHORT TITLE.

This subtitle may be cited as the ‘‘Deposit Insurance Funds
Act of 1996’’.
SEC. 2702. SPECIAL ASSESSMENT TO CAPITALIZE SAIF.

(a) IN GENERAL.—Except as provided in subsection (f), the
Board of Directors of the Federal Deposit Insurance Corporation
shall impose a special assessment on the SAIF-assessable deposits
of each insured depository institution in accordance with assessment
regulations of the Corporation at a rate applicable to all such

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110 STAT. 3009–480

institutions that the Board of Directors, in its sole discretion, determines (after taking into account the adjustments described in subsections (g), (h), and (j)) will cause the Savings Association Insurance Fund to achieve the designated reserve ratio on the first
business day of the 1st month beginning after the date of the
enactment of this Act.
(b) FACTORS TO BE CONSIDERED.—In carrying out subsection
(a), the Board of Directors shall base its determination on—
(1) the monthly Savings Association Insurance Fund balance most recently calculated;
(2) data on insured deposits reported in the most recent
reports of condition filed not later than 70 days before the
date of enactment of this Act by insured depository institutions;
and
(3) any other factors that the Board of Directors deems
appropriate.
(c) DATE OF DETERMINATION.—For purposes of subsection (a),
the amount of the SAIF-assessable deposits of an insured depository
institution shall be determined as of March 31, 1995.
(d) DATE PAYMENT DUE.—Except as provided in subsection
(g), the special assessment imposed under this section shall be—
(1) due on the first business day of the 1st month beginning
after the date of the enactment of this Act; and
(2) paid to the Corporation on the later of—
(A) the first business day of the 1st month beginning
after such date of enactment; or
(B) such other date as the Corporation shall prescribe,
but not later than 60 days after the date of enactment
of this Act.
(e) ASSESSMENT DEPOSITED IN SAIF.—Notwithstanding any
other provision of law, the proceeds of the special assessment
imposed under this section shall be deposited in the Savings
Association Insurance Fund.
(f) EXEMPTIONS FOR CERTAIN INSTITUTIONS.—
(1) EXEMPTION FOR WEAK INSTITUTIONS.—The Board of
Directors may, by order, in its sole discretion, exempt any
insured depository institution that the Board of Directors determines to be weak, from paying the special assessment imposed
under this section if the Board of Directors determines that
the exemption would reduce risk to the Savings Association
Insurance Fund.
(2) GUIDELINES REQUIRED.—Not later than 30 days after
the date of enactment of this Act, the Board of Directors shall
prescribe guidelines setting forth the criteria that the Board
of Directors will use in exempting institutions under paragraph
(1). Such guidelines shall be published in the Federal Register.
(3) EXEMPTION FOR CERTAIN NEWLY CHARTERED AND OTHER
DEFINED INSTITUTIONS.—
(A) IN GENERAL.—In addition to the institutions
exempted from paying the special assessment under paragraph (1), the Board of Directors shall exempt any insured
depository institution from payment of the special assessment if the institution—
(i) was in existence on October 1, 1995, and held
no SAIF-assessable deposits before January 1, 1993;
(ii) is a Federal savings bank which—

110 STAT. 3009–481

PUBLIC LAW 104–208—SEPT. 30, 1996

(I) was established de novo in April 1994 in
order to acquire the deposits of a savings association which was in default or in danger of default;
and
(II) received minority interim capital assistance from the Resolution Trust Corporation under
section 21A(w) of the Federal Home Loan Bank
Act in connection with the acquisition of any such
savings association; or
(iii) is a savings association, the deposits of which
are insured by the Savings Association Insurance
Fund, which—
(I) before January 1, 1987, was chartered as
a Federal savings bank insured by the Federal
Savings and Loan Insurance Corporation for the
purpose of acquiring all or substantially all of the
assets and assuming all or substantially all of
the deposit liabilities of a national bank in a transaction consummated after July 1, 1986; and
(II) as of the date of that transaction, had
assets of less than $150,000,000.
(B) DEFINITION.—For purposes of this paragraph, an
institution shall be deemed to have held SAIF-assessable
deposits before January 1, 1993, if—
(i) it directly held SAIF-assessable deposits before
that date; or
(ii) it succeeded to, acquired, purchased, or otherwise holds any SAIF-assessable deposits as of the date
of enactment of this Act that were SAIF-assessable
deposits before January 1, 1993.
(4) EXEMPT INSTITUTIONS REQUIRED TO PAY ASSESSMENTS
AT FORMER RATES.—
(A) PAYMENTS TO SAIF AND DIF.—Any insured depository institution that the Board of Directors exempts under
this subsection from paying the special assessment imposed
under this section shall pay semiannual assessments—
(i) during calendar years 1996, 1997, and 1998,
into the Savings Association Insurance Fund, based
on SAIF-assessable deposits of that institution, at
assessment rates calculated under the schedule in
effect for Savings Association Insurance Fund members
on June 30, 1995; and
(ii) during calendar year 1999—
(I) into the Deposit Insurance Fund, based
on SAIF-assessable deposits of that institution as
of December 31, 1998, at assessment rates calculated under the schedule in effect for Savings
Association Insurance Fund members on June 30,
1995; or
(II) in accordance with clause (i), if the Bank
Insurance Fund and the Savings Association Insurance Fund are not merged into the Deposit Insurance Fund.
(B) OPTIONAL PRO RATA PAYMENT OF SPECIAL ASSESSMENT.—This paragraph shall not apply with respect to
any insured depository institution (or successor insured
depository institution) that has paid, during any calendar

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–482

year from 1997 through 1999, upon such terms as the
Corporation may announce, an amount equal to the product
of—
(i) 16.7 percent of the special assessment that the
institution would have been required to pay under
subsection (a), if the Board of Directors had not
exempted the institution; and
(ii) the number of full semiannual periods remaining between the date of the payment and December
31, 1999.
(g) SPECIAL ELECTION FOR CERTAIN INSTITUTIONS FACING HARDSHIP AS A RESULT OF THE SPECIAL ASSESSMENT.—
(1) ELECTION AUTHORIZED.—If—
(A) an insured depository institution, or any depository
institution holding company which, directly or indirectly,
controls such institution, is subject to terms or covenants
in any debt obligation or preferred stock outstanding on
September 13, 1995; and
(B) the payment of the special assessment under subsection (a) would pose a significant risk of causing such
depository institution or holding company to default or
violate any such term or covenant,
the depository institution may elect, with the approval of the
Corporation, to pay such special assessment in accordance with
paragraphs (2) and (3) in lieu of paying such assessment in
the manner required under subsection (a).
(2) 1ST ASSESSMENT.—An insured depository institution
which makes an election under paragraph (1) shall pay an
assessment in an amount equal to 50 percent of the amount
of the special assessment that would otherwise apply under
subsection (a), by the date on which such special assessment
is payable under subsection (d).
(3) 2D ASSESSMENT.—An insured depository institution
which makes an election under paragraph (1) shall pay a 2d
assessment, by the date established by the Board of Directors
in accordance with paragraph (4), in an amount equal to the
product of 51 percent of the rate determined by the Board
of Directors under subsection (a) for determining the amount
of the special assessment and the SAIF-assessable deposits
of the institution on March 31, 1996, or such other date in
calendar year 1996 as the Board of Directors determines to
be appropriate.
(4) DUE DATE OF 2D ASSESSMENT.—The date established
by the Board of Directors for the payment of the assessment
under paragraph (3) by a depository institution shall be the
earliest practicable date which the Board of Directors determines to be appropriate, which is at least 15 days after the
date used by the Board of Directors under paragraph (3).
(5) SUPPLEMENTAL SPECIAL ASSESSMENT.—An insured
depository institution which makes an election under paragraph
(1) shall pay a supplemental special assessment, at the same
time the payment under paragraph (3) is made, in an amount
equal to the product of—
(A) 50 percent of the rate determined by the Board
of Directors under subsection (a) for determining the
amount of the special assessment; and

110 STAT. 3009–483

PUBLIC LAW 104–208—SEPT. 30, 1996

(B) 95 percent of the amount by which the SAIFassessable deposits used by the Board of Directors for
determining the amount of the 1st assessment under paragraph (2) exceeds, if any, the SAIF-assessable deposits
used by the Board for determining the amount of the
2d assessment under paragraph (3).
(h) ADJUSTMENT OF SPECIAL ASSESSMENT FOR CERTAIN BANK
INSURANCE FUND MEMBER BANKS.—
(1) IN GENERAL.—For purposes of computing the special
assessment imposed under this section with respect to a Bank
Insurance Fund member bank, the amount of any deposits
of any insured depository institution which section 5(d)(3) of
the Federal Deposit Insurance Act treats as insured by the
Savings Association Insurance Fund shall be reduced by 20
percent—
(A) if the adjusted attributable deposit amount of the
Bank Insurance Fund member bank is less than 50 percent
of the total domestic deposits of that member bank as
of June 30, 1995; or
(B) if, as of June 30, 1995, the Bank Insurance Fund
member—
(i) had an adjusted attributable deposit amount
equal to less than 75 percent of the total assessable
deposits of that member bank;
(ii) had total assessable deposits greater than
$5,000,000,000; and
(iii) was owned or controlled by a bank holding
company that owned or controlled insured depository
institutions having an aggregate amount of deposits
insured or treated as insured by the Bank Insurance
Fund greater than the aggregate amount of deposits
insured or treated as insured by the Savings Association Insurance Fund.
(2) ADJUSTED ATTRIBUTABLE DEPOSIT AMOUNT.—For purposes of this subsection, the ‘‘adjusted attributable deposit
amount’’ shall be determined in accordance with section
5(d)(3)(C) of the Federal Deposit Insurance Act.
(i) ADJUSTMENT TO THE ADJUSTED ATTRIBUTABLE DEPOSIT
AMOUNT FOR CERTAIN BANK INSURANCE FUND MEMBER BANKS.—
Section 5(d)(3) of the Federal Deposit Insurance Act (12 U.S.C.
1815(d)(3)) is amended—
(1) in subparagraph (C), by striking ‘‘The adjusted attributable deposit amount’’ and inserting ‘‘Except as provided in
subparagraph (K), the adjusted attributable deposit amount’’;
and
(2) by adding at the end the following new subparagraph:
‘‘(K) ADJUSTMENT OF ADJUSTED ATTRIBUTABLE DEPOSIT
AMOUNT.—The amount determined under subparagraph
(C)(i) for deposits acquired by March 31, 1995, shall be
reduced by 20 percent for purposes of computing the
adjusted attributable deposit amount for the payment of
any assessment for any semiannual period that begins
after the date of the enactment of the Deposit Insurance
Funds Act of 1996 (other than the special assessment
imposed under section 2702(a) of such Act), for a Bank
Insurance Fund member bank that, as of June 30, 1995—

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–484

‘‘(i) had an adjusted attributable deposit amount
that was less than 50 percent of the total deposits
of that member bank; or
‘‘(ii)(I) had an adjusted attributable deposit amount
equal to less than 75 percent of the total assessable
deposits of that member bank;
‘‘(II) had total assessable deposits greater than
$5,000,000,000; and
‘‘(III) was owned or controlled by a bank holding
company that owned or controlled insured depository
institutions having an aggregate amount of deposits
insured or treated as insured by the Bank Insurance
Fund greater than the aggregate amount of deposits
insured or treated as insured by the Savings Association Insurance Fund.’’.
(j) ADJUSTMENT OF SPECIAL ASSESSMENT FOR CERTAIN SAVINGS
ASSOCIATIONS.—
(1) SPECIAL ASSESSMENT REDUCTION.—For purposes of
computing the special assessment imposed under this section,
in the case of any converted association, the amount of any
deposits of such association which were insured by the Savings
Association Insurance Fund as of March 31, 1995, shall be
reduced by 20 percent.
(2) CONVERTED ASSOCIATION.—For purposes of this subsection, the term ‘‘converted association’’ means—
(A) any Federal savings association—
(i) that is a member of the Savings Association
Insurance Fund and that has deposits subject to assessment by that fund which did not exceed $4,000,000,000,
as of March 31, 1995; and
(ii) that had been, or is a successor by merger,
acquisition, or otherwise to an institution that had
been, a State savings bank, the deposits of which were
insured by the Federal Deposit Insurance Corporation
before August 9, 1989, that converted to a Federal
savings association pursuant to section 5(i) of the Home
Owners’ Loan Act before January 1, 1985;
(B) a State depository institution that is a member
of the Savings Association Insurance Fund that had been
a State savings bank before October 15, 1982, and was
a Federal savings association on August 9, 1989;
(C) an insured bank that—
(i) was established de novo in order to acquire
the deposits of a savings association in default or in
danger of default;
(ii) did not open for business before acquiring the
deposits of such savings association; and
(iii) was a Savings Association Insurance Fund
member before the date of enactment of this Act; and
(D) an insured bank that—
(i) resulted from a savings association before
December 19, 1991, in accordance with section
5(d)(2)(G) of the Federal Deposit Insurance Act; and
(ii) had an increase in its capital in conjunction
with the conversion in an amount equal to more than
75 percent of the capital of the institution on the
day before the date of the conversion.

110 STAT. 3009–485

PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 2703. FINANCING CORPORATION FUNDING.

12 USC 1441
note.

(a) IN GENERAL.—Section 21 of the Federal Home Loan Bank
Act (12 U.S.C. 1441) is amended—
(1) in subsection (f)(2)—
(A) in the matter immediately preceding subparagraph
(A)—
(i) by striking ‘‘To the extent the amounts available
pursuant to paragraph (1) are insufficient to cover
the amount of interest payments, issuance costs, and
custodial fees,’’ and inserting ‘‘In addition to the
amounts obtained pursuant to paragraph (1),’’;
(ii) by striking ‘‘Savings Association Insurance
Fund member’’ and inserting ‘‘insured depository
institution’’; and
(iii) by striking ‘‘members’’ and inserting ‘‘institutions’’; and
(B) by striking ‘‘, except that—’’ and all that follows
through the end of the paragraph and inserting ‘‘, except
that—
‘‘(A) the assessments imposed on insured depository
institutions with respect to any BIF-assessable deposit
shall be assessed at a rate equal to 1⁄5 of the rate of
the assessments imposed on insured depository institutions
with respect to any SAIF-assessable deposit; and
‘‘(B) no limitation under clause (i) or (iii) of section
7(b)(2)(A) of the Federal Deposit Insurance Act shall apply
for purposes of this paragraph.’’; and
(2) in subsection (k)—
(A) by striking ‘‘section—’’ and inserting ‘‘section, the
following definitions shall apply:’’;
(B) by striking paragraph (1);
(C) by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively; and
(D) by adding at the end the following new paragraphs:
‘‘(3) INSURED DEPOSITORY INSTITUTION.—The term ‘insured
depository institution’ has the same meaning as in section
3 of the Federal Deposit Insurance Act
‘‘(4) DEPOSIT TERMS.—
‘‘(A) BIF-ASSESSABLE DEPOSITS.—The term ‘BIF-assessable deposit’ means a deposit that is subject to assessment
for purposes of the Bank Insurance Fund under the Federal
Deposit Insurance Act (including a deposit that is treated
as a deposit insured by the Bank Insurance Fund under
section 5(d)(3) of the Federal Deposit Insurance Act).
‘‘(B) SAIF-ASSESSABLE DEPOSIT.—The term ‘SAIFassessable deposit’ has the meaning given to such term
in section 2710 of the Deposit Insurance Funds Act of
1996.’’.
(b) CONFORMING AMENDMENT.—Section 7(b)(2) of the Federal
Deposit Insurance Act (12 U.S.C. 1817(b)(2)) is amended by striking
subparagraph (D).
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—Subsections (a) and (c) and the amendments made by such subsections shall apply with respect to
semiannual periods which begin after December 31, 1996.
(2) TERMINATION OF CERTAIN ASSESSMENT RATES.—
Subparagraph (A) of section 21(f)(2) of the Federal Home Loan

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–486

Bank Act (as amended by subsection (a)) shall not apply after
the earlier of—
(A) December 31, 1999; or
(B) the date as of which the last savings association
ceases to exist.
(d) PROHIBITION ON DEPOSIT SHIFTING.—
(1) IN GENERAL.—Effective as of the date of the enactment
of this Act and ending on the date provided in subsection
(c)(2) of this section, the Comptroller of the Currency, the
Board of Directors of the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System,
and the Director of the Office of Thrift Supervision shall take
appropriate actions, including enforcement actions, denial of
applications, or imposition of entrance and exit fees as if such
transactions qualified as conversion transactions pursuant to
section 5(d) of the Federal Deposit Insurance Act, to prevent
insured depository institutions and depository institution holding companies from facilitating or encouraging the shifting
of deposits from SAIF-assessable deposits to BIF-assessable
deposits (as defined in section 21(k) of the Federal Home Loan
Bank Act) for the purpose of evading the assessments imposed
on insured depository institutions with respect to SAIF-assessable deposits under section 7(b) of the Federal Deposit Insurance Act and section 21(f)(2) of the Federal Home Loan Bank
Act.
(2) REGULATIONS.—The Board of Directors of the Federal
Deposit Insurance Corporation may issue regulations, including
regulations defining terms used in paragraph (1), to prevent
the shifting of deposits described in such paragraph.
(3) RULE OF CONSTRUCTION.—No provision of this subsection shall be construed as prohibiting conduct or activity
of any insured depository institution which—
(A) is undertaken in the ordinary course of business
of such depository institution; and
(B) is not directed towards the depositors of an insured
depository institution affiliate (as defined in section 2(k)
of the Bank Holding Company Act of 1956) of such depository institution.

12 USC 1441
note.

SEC. 2704. MERGER OF BIF AND SAIF.

(a) IN GENERAL.—
(1) MERGER.—The Bank Insurance Fund and the Savings
Association Insurance Fund shall be merged into the Deposit
Insurance Fund established by section 11(a)(4) of the Federal
Deposit Insurance Act, as amended by this section.
(2) DISPOSITION OF ASSETS AND LIABILITIES.—All assets and
liabilities of the Bank Insurance Fund and the Savings Association Insurance Fund shall be transferred to the Deposit Insurance Fund.
(3) NO SEPARATE EXISTENCE.—The separate existence of
the Bank Insurance Fund and the Savings Association Insurance Fund shall cease.
(b) SPECIAL RESERVE OF THE DEPOSIT INSURANCE FUND.—
(1) IN GENERAL.—Immediately before the merger of the
Bank Insurance Fund and the Savings Association Insurance
Fund, if the reserve ratio of the Savings Association Insurance
Fund exceeds the designated reserve ratio, the amount by which

12 USC 1821
note.

12 USC 1821
note.

110 STAT. 3009–487

12 USC 1821
note.

PUBLIC LAW 104–208—SEPT. 30, 1996

that reserve ratio exceeds the designated reserve ratio shall
be placed in the Special Reserve of the Deposit Insurance
Fund, established under section 11(a)(5) of the Federal Deposit
Insurance Act, as amended by this section.
(2) DEFINITION.—For purposes of this subsection, the term
‘‘reserve ratio’’ means the ratio of the net worth of the Savings
Association Insurance Fund to the aggregate estimated amount
of deposits insured by the Savings Association Insurance Fund.
(c) EFFECTIVE DATE.—This section and the amendments made
by this section shall become effective on January 1, 1999, if no
insured depository institution is a savings association on that date.
(d) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) DEPOSIT INSURANCE FUND.—Section 11(a)(4) of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)(4)) is amended—
(A) by redesignating subparagraph (B) as subparagraph (C);
(B) by striking subparagraph (A) and inserting the
following:
‘‘(A) ESTABLISHMENT.—There is established the Deposit
Insurance Fund, which the Corporation shall—
‘‘(i) maintain and administer;
‘‘(ii) use to carry out its insurance purposes in
the manner provided by this subsection; and
‘‘(iii) invest in accordance with section 13(a).
‘‘(B) USES.—The Deposit Insurance Fund shall be available to the Corporation for use with respect to Deposit
Insurance Fund members.’’; and
(C) by striking ‘‘(4) GENERAL PROVISIONS RELATING TO
FUNDS.—’’ and inserting the following:
‘‘(4) ESTABLISHMENT OF THE DEPOSIT INSURANCE FUND.—
’’.
(2) OTHER REFERENCES.—Section 11(a)(4)(C) of the Federal
Deposit Insurance Act (12 U.S.C. 1821(a)(4)(C), as redesignated
by paragraph (1) of this subsection) is amended by striking
‘‘Bank Insurance Fund and the Savings Association Insurance
Fund’’ and inserting ‘‘Deposit Insurance Fund’’.
(3) DEPOSITS INTO FUND.—Section 11(a)(4) of the Federal
Deposit Insurance Act (12 U.S.C. 1821(a)(4)) is amended by
adding at the end the following new subparagraph:
‘‘(D) DEPOSITS.—All amounts assessed against insured
depository institutions by the Corporation shall be deposited in the Deposit Insurance Fund.’’.
(4) SPECIAL RESERVE OF DEPOSITS.—Section 11(a)(5) of the
Federal Deposit Insurance Act (12 U.S.C. 1821(a)(5)) is amended to read as follows:
‘‘(5) SPECIAL RESERVE OF DEPOSIT INSURANCE FUND.—
‘‘(A) ESTABLISHMENT.—
‘‘(i) IN GENERAL.—There is established a Special
Reserve of the Deposit Insurance Fund, which shall
be administered by the Corporation and shall be
invested in accordance with section 13(a).
‘‘(ii) LIMITATION.—The Corporation shall not provide any assessment credit, refund, or other payment
from any amount in the Special Reserve.
‘‘(B) EMERGENCY USE OF SPECIAL RESERVE.—Notwithstanding subparagraph (A)(ii), the Corporation may, in its
sole discretion, transfer amounts from the Special Reserve

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–488

to the Deposit Insurance Fund, for the purposes set forth
in paragraph (4), only if—
‘‘(i) the reserve ratio of the Deposit Insurance Fund
is less than 50 percent of the designated reserve ratio;
and
‘‘(ii) the Corporation expects the reserve ratio of
the Deposit Insurance Fund to remain at less than
50 percent of the designated reserve ratio for each
of the next 4 calendar quarters.
‘‘(C) EXCLUSION OF SPECIAL RESERVE IN CALCULATING
RESERVE RATIO.—Notwithstanding any other provision of
law, any amounts in the Special Reserve shall be excluded
in calculating the reserve ratio of the Deposit Insurance
Fund under section 7.’’.
(5) FEDERAL HOME LOAN BANK ACT.—Section 21B(f)(2)(C)(ii)
of the Federal Home Loan Bank Act (12 U.S.C.
1441b(f)(2)(C)(ii)) is amended—
(A) in subclause (I), by striking ‘‘to Savings Associations Insurance Fund members’’ and inserting ‘‘to insured
depository institutions, and their successors, which were
Savings Association Insurance Fund members on September 1, 1995’’; and
(B) in subclause (II), by striking ‘‘to Savings Associations Insurance Fund members’’ and inserting ‘‘to insured
depository institutions, and their successors, which were
Savings Association Insurance Fund members on September 1, 1995’’.
(6) REPEALS.—
(A) SECTION 3.—Section 3(y) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(y)) is amended to read as
follows:
‘‘(y) DEFINITIONS RELATING TO THE DEPOSIT INSURANCE FUND.—
‘‘(1) DEPOSIT INSURANCE FUND.—The term ‘Deposit Insurance Fund’ means the fund established under section 11(a)(4).
‘‘(2) RESERVE RATIO.—The term ‘reserve ratio’ means the
ratio of the net worth of the Deposit Insurance Fund to aggregate estimated insured deposits held in all insured depository
institutions.
‘‘(3) DESIGNATED RESERVE RATIO.—The designated reserve
ratio of the Deposit Insurance Fund for each year shall be—
‘‘(A) 1.25 percent of estimated insured deposits; or
‘‘(B) a higher percentage of estimated insured deposits
that the Board of Directors determines to be justified for
that year by circumstances raising a significant risk of
substantial future losses to the fund.’’
(B) SECTION 7.—Section 7 of the Federal Deposit Insurance Act (12 U.S.C. 1817) is amended—
(i) by striking subsection (l);
(ii) by redesignating subsections (m) and (n) as
subsections (l) and (m), respectively;
(iii) in subsection (b)(2), by striking subparagraphs
(B) and (F), and by redesignating subparagraphs (C),
(E), (G), and (H) as subparagraphs (B) through (E),
respectively.
(C) SECTION 11.—Section 11(a) of the Federal Deposit
Insurance Act (12 U.S.C. 1821(a)) is amended—
(i) by striking paragraphs (6) and (7); and

110 STAT. 3009–489

PUBLIC LAW 104–208—SEPT. 30, 1996

(ii) by redesignating paragraph (8) as paragraph
(6).
(7) SECTION 5136 OF THE REVISED STATUTES.—The paragraph designated the ‘‘Eleventh’’ of section 5136 of the Revised
Statutes of the United States (12 U.S.C. 24) is amended in
the 5th sentence, by striking ‘‘affected deposit insurance fund’’
and inserting ‘‘Deposit Insurance Fund’’.
(8) INVESTMENTS PROMOTING PUBLIC WELFARE; LIMITATIONS
ON AGGREGATE INVESTMENTS.—The 23d undesignated paragraph of section 9 of the Federal Reserve Act (12 U.S.C. 338a)
is amended in the 4th sentence, by striking ‘‘affected deposit
insurance fund’’ and inserting ‘‘Deposit Insurance Fund’’.
(9) ADVANCES TO CRITICALLY UNDERCAPITALIZED DEPOSITORY INSTITUTIONS.—Section 10B(b)(3)(A)(ii) of the Federal
Reserve Act (12 U.S.C. 347b(b)(3)(A)(ii)) is amended by striking
‘‘any deposit insurance fund in’’ and inserting ‘‘the Deposit
Insurance Fund of’’.
(10) AMENDMENTS TO THE BALANCED BUDGET AND EMERGENCY DEFICIT CONTROL ACT OF 1985.—Section 255(g)(1)(A) of
the Balanced Budget and Emergency Deficit Control Act of
1985 (2 U.S.C. 905(g)(1)(A)) is amended—
(A) by striking ‘‘Bank Insurance Fund’’ and inserting
‘‘Deposit Insurance Fund’’; and
(B) by striking ‘‘Federal Deposit Insurance Corporation,
Savings Association Insurance Fund;’’.
(11) FURTHER AMENDMENTS TO THE FEDERAL HOME LOAN
BANK ACT.—The Federal Home Loan Bank Act (12 U.S.C. 1421
et seq.) is amended—
(A) in section 11(k) (12 U.S.C. 1431(k))—
(i) in the subsection heading, by striking ‘‘SAIF’’
and inserting ‘‘THE DEPOSIT INSURANCE FUND’’; and
(ii) by striking ‘‘Savings Association Insurance
Fund’’ each place such term appears and inserting
‘‘Deposit Insurance Fund’’;
(B) in section 21A(b)(4)(B) (12 U.S.C. 1441a(b)(4)(B)),
by striking ‘‘affected deposit insurance fund’’ and inserting
‘‘Deposit Insurance Fund’’;
(C) in section 21A(b)(6)(B) (12 U.S.C. 1441a(b)(6)(B))—
(i) in the subparagraph heading, by striking ‘‘SAIFINSURED BANKS’’ and inserting ‘‘CHARTER CONVERSIONS’’; and
(ii) by striking ‘‘Savings Association Insurance
Fund member’’ and inserting ‘‘savings association’’;
(D) in section 21A(b)(10)(A)(iv)(II) (12 U.S.C.
1441a(b)(10)(A)(iv)(II)), by striking ‘‘Savings Association
Insurance Fund’’ and inserting ‘‘Deposit Insurance Fund’’;
(E) in section 21B(e) (12 U.S.C. 1441b(e))—
(i) in paragraph (5), by inserting ‘‘as of the date
of funding’’ after ‘‘Savings Association Insurance Fund
members’’ each place such term appears;
(ii) by striking paragraph (7); and
(iii) by redesignating paragraph (8) as paragraph
(7); and
(F) in section 21B(k) (12 U.S.C. 1441b(k))—
(i) by striking paragraph (8); and
(ii) by redesignating paragraphs (9) and (10) as
paragraphs (8) and (9), respectively.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–490

(12) AMENDMENTS TO THE HOME OWNERS’ LOAN ACT.—The
Home Owners’ Loan Act (12 U.S.C. 1461 et seq.) is amended—
(A) in section 5—
(i) in subsection (c)(5)(A), by striking ‘‘that is a
member of the Bank Insurance Fund’’;
(ii) in subsection (c)(6), by striking ‘‘As used in
this subsection—’’ and inserting ‘‘For purposes of this
subsection, the following definitions shall apply:’’;
(iii) in subsection (o)(1), by striking ‘‘that is a Bank
Insurance Fund member’’;
(iv) in subsection (o)(2)(A), by striking ‘‘a Bank
Insurance Fund member until such time as it changes
its status to a Savings Association Insurance Fund
member’’ and inserting ‘‘insured by the Deposit Insurance Fund’’;
(v) in subsection (t)(5)(D)(iii)(II), by striking
‘‘affected deposit insurance fund’’ and inserting
‘‘Deposit Insurance Fund’’;
(vi) in subsection (t)(7)(C)(i)(I), by striking ‘‘affected
deposit insurance fund’’ and inserting ‘‘Deposit Insurance Fund’’; and
(vii) in subsection (v)(2)(A)(i), by striking ‘‘, the
Savings Association Insurance Fund’’ and inserting ‘‘or
the Deposit Insurance Fund’’; and
(B) in section 10—
(i) in subsection (e)(1)(A)(iii)(VII), by adding ‘‘or’’
at the end;
(ii) in subsection (e)(1)(A)(iv), by adding ‘‘and’’ at
the end;
(iii) in subsection (e)(1)(B), by striking ‘‘Savings
Association Insurance Fund or Bank Insurance Fund’’
and inserting ‘‘Deposit Insurance Fund’’;
(iv) in subsection (e)(2), by striking ‘‘Savings
Association Insurance Fund or the Bank Insurance
Fund’’ and inserting ‘‘Deposit Insurance Fund’’; and
(v) in subsection (m)(3), by striking subparagraph
(E), and by redesignating subparagraphs (F), (G), and
(H) as subparagraphs (E), (F), and (G), respectively.
(13) AMENDMENTS TO THE NATIONAL HOUSING ACT.—The
National Housing Act (12 U.S.C. 1701 et seq.) is amended—
(A) in section 317(b)(1)(B) (12 U.S.C. 1723i(b)(1)(B)),
by striking ‘‘Bank Insurance Fund for banks or through
the Savings Association Insurance Fund for savings
associations’’ and inserting ‘‘Deposit Insurance Fund’’; and
(B) in section 526(b)(1)(B)(ii) (12 U.S.C. 1735f–
14(b)(1)(B)(ii)), by striking ‘‘Bank Insurance Fund for banks
and through the Savings Association Insurance Fund for
savings associations’’ and inserting ‘‘Deposit Insurance
Fund’’.
(14) FURTHER AMENDMENTS TO THE FEDERAL DEPOSIT
INSURANCE ACT.—The Federal Deposit Insurance Act (12 U.S.C.
1811 et seq.) is amended—
(A) in section 3(a)(1) (12 U.S.C. 1813(a)(1)), by striking
subparagraph (B) and inserting the following:
‘‘(B) includes any former savings association.’’;

12 USC 1464.

12 USC 1467a.

110 STAT. 3009–491

PUBLIC LAW 104–208—SEPT. 30, 1996

(B) in section 5(b)(5) (12 U.S.C. 1815(b)(5)), by striking
‘‘the Bank Insurance Fund or the Savings Association
Insurance Fund;’’ and inserting ‘‘Deposit Insurance Fund,’’;
(C) in section 5(d) (12 U.S.C. 1815(d)), by striking
paragraphs (2) and (3);
(D) in section 5(d)(1) (12 U.S.C. 1815(d)(1))—
(i) in subparagraph (A), by striking ‘‘reserve ratios
in the Bank Insurance Fund and the Savings Association Insurance Fund’’ and inserting ‘‘the reserve ratio
of the Deposit Insurance Fund’’;
(ii) by striking subparagraph (B) and inserting
the following:
‘‘(2) FEE CREDITED TO THE DEPOSIT INSURANCE FUND.—
The fee paid by the depository institution under paragraph
(1) shall be credited to the Deposit Insurance Fund.’’;
(iii) by striking ‘‘(1) UNINSURED INSTITUTIONS.—
’’; and
(iv) by redesignating subparagraphs (A) and (C)
as paragraphs (1) and (3), respectively, and moving
the margins 2 ems to the left;
(E) in section 5(e) (12 U.S.C. 1815(e))—
(i) in paragraph (5)(A), by striking ‘‘Bank Insurance Fund or the Savings Association Insurance Fund’’
and inserting ‘‘Deposit Insurance Fund’’;
(ii) by striking paragraph (6); and
(iii) by redesignating paragraphs (7), (8), and (9)
as paragraphs (6), (7), and (8), respectively;
(F) in section 6(5) (12 U.S.C. 1816(5)), by striking
‘‘Bank Insurance Fund or the Savings Association Insurance Fund’’ and inserting ‘‘Deposit Insurance Fund’’;
(G) in section 7(b) (12 U.S.C. 1817(b))—
(i) in paragraph (1)(D), by striking ‘‘each deposit
insurance fund’’ and inserting ‘‘the Deposit Insurance
Fund’’;
(ii) in clauses (i)(I) and (iv) of paragraph (2)(A),
by striking ‘‘each deposit insurance fund’’ each place
such term appears and inserting ‘‘the Deposit Insurance Fund’’;
(iii) in paragraph (2)(A)(iii), by striking ‘‘a deposit
insurance fund’’ and inserting ‘‘the Deposit Insurance
Fund’’;
(iv) by striking clause (iv) of paragraph (2)(A);
(v) in paragraph (2)(C) (as redesignated by paragraph (6)(B) of this subsection)—
(I) by striking ‘‘any deposit insurance fund’’
and inserting ‘‘the Deposit Insurance Fund’’; and
(II) by striking ‘‘that fund’’ each place such
term appears and inserting ‘‘the Deposit Insurance
Fund’’;
(vi) in paragraph (2)(D) (as redesignated by paragraph (6)(B) of this subsection)—
(I) in the subparagraph heading, by striking
‘‘FUNDS ACHIEVE’’ and inserting ‘‘FUND ACHIEVES’’;
and
(II) by striking ‘‘a deposit insurance fund’’ and
inserting ‘‘the Deposit Insurance Fund’’;
(vii) in paragraph (3)—

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–492

(I) in the paragraph heading, by striking
‘‘FUNDS’’ and inserting ‘‘FUND’’;
(II) by striking ‘‘members of that fund’’ where
such term appears in the portion of subparagraph
(A) which precedes clause (i) of such subparagraph
and inserting ‘‘insured depository institutions’’;
(III) by striking ‘‘that fund’’ each place such
term appears (other than in connection with term
amended in subclause (II) of this clause) and
inserting ‘‘the Deposit Insurance Fund’’;
(IV) in subparagraph (A), by striking ‘‘Except
as provided in paragraph (2)(F), if’’ and inserting
‘‘If’’;
(V) in subparagraph (A), by striking ‘‘any
deposit insurance fund’’ and inserting ‘‘the Deposit
Insurance Fund’’; and
(VI) by striking subparagraphs (C) and (D)
and inserting the following:
‘‘(C) AMENDING SCHEDULE.—The Corporation may, by
regulation, amend a schedule prescribed under subparagraph (B).’’; and
(viii) in paragraph (6)—
(I) by striking ‘‘any such assessment’’ and
inserting ‘‘any such assessment is necessary’’;
(II) by striking ‘‘(A) is necessary—’’;
(III) by striking subparagraph (B);
(IV) by redesignating clauses (i), (ii), and (iii)
as subparagraphs (A), (B), and (C), respectively,
and moving the margins 2 ems to the left; and
(V) in subparagraph (C) (as redesignated), by
striking ‘‘; and’’ and inserting a period;
(H) in section 11(f)(1) (12 U.S.C. 1821(f)(1)), by striking
‘‘, except that—’’ and all that follows through the end
of the paragraph and inserting a period;
(I) in section 11(i)(3) (12 U.S.C. 1821(i)(3))—
(i) by striking subparagraph (B);
(ii) by redesignating subparagraph (C) as subparagraph (B); and
(iii) in subparagraph (B) (as redesignated), by
striking ‘‘subparagraphs (A) and (B)’’ and inserting
‘‘subparagraph (A)’’;
(J) in section 11A(a) (12 U.S.C. 1821a(a))—
(i) in paragraph (2), by striking ‘‘LIABILITIES.—
’’ and all that follows through ‘‘Except’’ and inserting
‘‘LIABILITIES.—Except’’;
(ii) by striking paragraph (2)(B); and
(iii) in paragraph (3), by striking ‘‘the Bank Insurance Fund, the Savings Association Insurance Fund,’’
and inserting ‘‘the Deposit Insurance Fund’’;
(K) in section 11A(b) (12 U.S.C. 1821a(b)), by striking
paragraph (4);
(L) in section 11A(f) (12 U.S.C. 1821a(f)), by striking
‘‘Savings Association Insurance Fund’’ and inserting
‘‘Deposit Insurance Fund’’;
(M) in section 13 (12 U.S.C. 1823)—
(i) in subsection (a)(1), by striking ‘‘Bank Insurance
Fund, the Savings Association Insurance Fund,’’ and

110 STAT. 3009–493

PUBLIC LAW 104–208—SEPT. 30, 1996
inserting ‘‘Deposit Insurance Fund, the Special Reserve
of the Deposit Insurance Fund,’’;
(ii) in subsection (c)(4)(E)—
(I) in the subparagraph heading, by striking
‘‘FUNDS’’ and inserting ‘‘FUND’’; and
(II) in clause (i), by striking ‘‘any insurance
fund’’ and inserting ‘‘the Deposit Insurance Fund’’;
(iii) in subsection (c)(4)(G)(ii)—
(I) by striking ‘‘appropriate insurance fund’’
and inserting ‘‘Deposit Insurance Fund’’;
(II) by striking ‘‘the members of the insurance
fund (of which such institution is a member)’’ and
inserting ‘‘insured depository institutions’’;
(III) by striking ‘‘each member’s’’ and inserting
‘‘each insured depository institution’s’’; and
(IV) by striking ‘‘the member’s’’ each place
such term appears and inserting ‘‘the institution’s’’;
(iv) in subsection (c), by striking paragraph (11);
(v) in subsection (h), by striking ‘‘Bank Insurance
Fund’’ and inserting ‘‘Deposit Insurance Fund’’;
(vi) in subsection (k)(4)(B)(i), by striking ‘‘Savings
Association Insurance Fund’’ and inserting ‘‘Deposit
Insurance Fund’’; and
(vii) in subsection (k)(5)(A), by striking ‘‘Savings
Association Insurance Fund’’ and inserting ‘‘Deposit
Insurance Fund’’;
(N) in section 14(a) (12 U.S.C. 1824(a)) in the 5th
sentence—
(i) by striking ‘‘Bank Insurance Fund or the Savings Association Insurance Fund’’ and inserting
‘‘Deposit Insurance Fund’’; and
(ii) by striking ‘‘each such fund’’ and inserting ‘‘the
Deposit Insurance Fund’’;
(O) in section 14(b) (12 U.S.C. 1824(b)), by striking
‘‘Bank Insurance Fund or Savings Association Insurance
Fund’’ and inserting ‘‘Deposit Insurance Fund’’;
(P) in section 14(c) (12 U.S.C. 1824(c)), by striking
paragraph (3);
(Q) in section 14(d) (12 U.S.C. 1824(d))—
(i) by striking ‘‘BIF’’ each place such term appears
and inserting ‘‘DIF’’; and
(ii) by striking ‘‘Bank Insurance Fund’’ each place
such term appears and inserting ‘‘Deposit Insurance
Fund’’;
(R) in section 15(c)(5) (12 U.S.C. 1825(c)(5))—
(i) by striking ‘‘the Bank Insurance Fund or Savings Association Insurance Fund, respectively’’ each
place such term appears and inserting ‘‘the Deposit
Insurance Fund’’; and
(ii) in subparagraph (B), by striking ‘‘the Bank
Insurance Fund or the Savings Association Insurance
Fund, respectively’’ and inserting ‘‘the Deposit Insurance Fund’’;
(S) in section 17(a) (12 U.S.C. 1827(a))—
(i) in the subsection heading, by striking ‘‘BIF,
SAIF,’’ and inserting ‘‘THE DEPOSIT INSURANCE FUND’’;
and

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–494

(ii) in paragraph (1), by striking ‘‘the Bank Insurance Fund, the Savings Association Insurance Fund,’’
each place such term appears and inserting ‘‘the
Deposit Insurance Fund’’;
(T) in section 17(d) (12 U.S.C. 1827(d)), by striking
‘‘the Bank Insurance Fund, the Savings Association Insurance Fund,’’ each place such term appears and inserting
‘‘the Deposit Insurance Fund’’;
(U) in section 18(m)(3) (12 U.S.C. 1828(m)(3))—
(i) by striking ‘‘Savings Association Insurance
Fund’’ each place such term appears and inserting
‘‘Deposit Insurance Fund’’; and
(ii) in subparagraph (C), by striking ‘‘or the Bank
Insurance Fund’’;
(V) in section 18(p) (12 U.S.C. 1828(p)), by striking
‘‘deposit insurance funds’’ and inserting ‘‘Deposit Insurance
Fund’’;
(W) in section 24 (12 U.S.C. 1831a) in subsections
(a)(1) and (d)(1)(A), by striking ‘‘appropriate deposit insurance fund’’ each place such term appears and inserting
‘‘Deposit Insurance Fund’’;
(X) in section 28 (12 U.S.C. 1831e), by striking ‘‘affected
deposit insurance fund’’ each place such term appears and
inserting ‘‘Deposit Insurance Fund’’;
(Y) by striking section 31 (12 U.S.C. 1831h);
(Z) in section 36(i)(3) (12 U.S.C. 1831m(i)(3)) by striking
‘‘affected deposit insurance fund’’ and inserting ‘‘Deposit
Insurance Fund’’;
(AA) in section 38(a) (12 U.S.C. 1831o(a)) in the subsection heading, by striking ‘‘FUNDS’’ and inserting ‘‘FUND’’;
(BB) in section 38(k) (12 U.S.C. 1831o(k))—
(i) in paragraph (1), by striking ‘‘a deposit insurance fund’’ and inserting ‘‘the Deposit Insurance Fund’’;
and
(ii) in paragraph (2)(A)—
(I) by striking ‘‘A deposit insurance fund’’ and
inserting ‘‘The Deposit Insurance Fund’’; and
(II) by striking ‘‘the deposit insurance fund’s
outlays’’ and inserting ‘‘the outlays of the Deposit
Insurance Fund’’; and
(CC) in section 38(o) (12 U.S.C. 1831o(o))—
(i) by striking ‘‘ASSOCIATIONS.—’’ and all that follows through ‘‘Subsections (e)(2)’’ and inserting
‘‘ASSOCIATIONS.—Subsections (e)(2)’’;
(ii) by redesignating subparagraphs (A), (B), and
(C) as paragraphs (1), (2), and (3), respectively, and
moving the margins 2 ems to the left; and
(iii) in paragraph (1) (as redesignated), by
redesignating clauses (i) and (ii) as subparagraphs (A)
and (B), respectively, and moving the margins 2 ems
to the left.
(15) AMENDMENTS TO THE FINANCIAL INSTITUTIONS REFORM,
RECOVERY, AND ENFORCEMENT ACT OF 1989.—The Financial
Institutions Reform, Recovery, and Enforcement Act is amended—
(A) in section 951(b)(3)(B) (12 U.S.C. 1833a(b)(3)(B)),
by striking ‘‘Bank Insurance Fund, the Savings Association

110 STAT. 3009–495

PUBLIC LAW 104–208—SEPT. 30, 1996

Insurance Fund,’’ and inserting ‘‘Deposit Insurance Fund’’;
and
(B) in section 1112(c)(1)(B) (12 U.S.C. 3341(c)(1)(B)),
by striking ‘‘Bank Insurance Fund, the Savings Association
Insurance Fund,’’ and inserting ‘‘Deposit Insurance Fund’’.
(16) AMENDMENT TO THE BANK ENTERPRISE ACT OF 1991.—
Section 232(a)(1) of the Bank Enterprise Act of 1991 (12 U.S.C.
1834(a)(1)) is amended by striking ‘‘section 7(b)(2)(H)’’ and
inserting ‘‘section 7(b)(2)(G)’’.
(17) AMENDMENT TO THE BANK HOLDING COMPANY ACT OF
1956.—Section 2(j)(2) of the Bank Holding Company Act of
1956 (12 U.S.C. 1841(j)(2)) is amended by striking ‘‘Savings
Association Insurance Fund’’ and inserting ‘‘Deposit Insurance
Fund’’.
SEC. 2705. CREATION OF SAIF SPECIAL RESERVE.

Section 11(a)(6) of the Federal Deposit Insurance Act (12 U.S.C.
1821(a)(6)) is amended by adding at the end the following new
subparagraph:
‘‘(L) ESTABLISHMENT OF SAIF SPECIAL RESERVE.—
‘‘(i) ESTABLISHMENT.—If, on January 1, 1999, the
reserve ratio of the Savings Association Insurance Fund
exceeds the designated reserve ratio, there is established
a Special Reserve of the Savings Association Insurance
Fund, which shall be administered by the Corporation and
shall be invested in accordance with section 13(a).
‘‘(ii) AMOUNTS IN SPECIAL RESERVE.—If, on January
1, 1999, the reserve ratio of the Savings Association Insurance Fund exceeds the designated reserve ratio, the amount
by which the reserve ratio exceeds the designated reserve
ratio shall be placed in the Special Reserve of the Savings
Association Insurance Fund established by clause (i).
‘‘(iii) LIMITATION.—The Corporation shall not provide
any assessment credit, refund, or other payment from any
amount in the Special Reserve of the Savings Association
Insurance Fund.
‘‘(iv) EMERGENCY USE OF SPECIAL RESERVE.—Notwithstanding clause (iii), the Corporation may, in its sole discretion, transfer amounts from the Special Reserve of the
Savings Association Insurance Fund to the Savings Association Insurance Fund for the purposes set forth in paragraph
(4), only if—
‘‘(I) the reserve ratio of the Savings Association
Insurance Fund is less than 50 percent of the designated reserve ratio; and
‘‘(II) the Corporation expects the reserve ratio of
the Savings Association Insurance Fund to remain at
less than 50 percent of the designated reserve ratio
for each of the next 4 calendar quarters.
‘‘(v) EXCLUSION OF SPECIAL RESERVE IN CALCULATING
RESERVE RATIO.—Notwithstanding any other provision of
law, any amounts in the Special Reserve of the Savings
Association Insurance Fund shall be excluded in calculating
the reserve ratio of the Savings Association Insurance
Fund.’’.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–496

SEC. 2706. REFUND OF AMOUNTS IN DEPOSIT INSURANCE FUND IN
EXCESS OF DESIGNATED RESERVE AMOUNT.

Subsection (e) of section 7 of the Federal Deposit Insurance
Act (12 U.S.C. 1817(e)) is amended to read as follows:
‘‘(e) REFUNDS.—
‘‘(1) OVERPAYMENTS.—In the case of any payment of an
assessment by an insured depository institution in excess of
the amount due to the Corporation, the Corporation may—
‘‘(A) refund the amount of the excess payment to the
insured depository institution; or
‘‘(B) credit such excess amount toward the payment
of subsequent semiannual assessments until such credit
is exhausted.
‘‘(2) BALANCE IN INSURANCE FUND IN EXCESS OF DESIGNATED
RESERVE.—
‘‘(A) IN GENERAL.—Subject to subparagraphs (B) and
(C), if, as of the end of any semiannual assessment period
beginning after the date of the enactment of the Deposit
Insurance Funds Act of 1996, the amount of the actual
reserves in—
‘‘(i) the Bank Insurance Fund (until the merger
of such fund into the Deposit Insurance Fund pursuant
to section 2704 of the Deposit Insurance Funds Act
of 1996); or
‘‘(ii) the Deposit Insurance Fund (after the
establishment of such fund),
exceeds the balance required to meet the designated reserve
ratio applicable with respect to such fund, such excess
amount shall be refunded to insured depository institutions
by the Corporation on such basis as the Board of Directors
determines to be appropriate, taking into account the factors considered under the risk-based assessment system.
‘‘(B) REFUND NOT TO EXCEED PREVIOUS SEMIANNUAL
ASSESSMENT.—The amount of any refund under this paragraph to any member of a deposit insurance fund for any
semiannual assessment period may not exceed the total
amount of assessments paid by such member to the insurance fund with respect to such period.
‘‘(C) REFUND LIMITATION FOR CERTAIN INSTITUTIONS.—
No refund may be made under this paragraph with respect
to the amount of any assessment paid for any semiannual
assessment period by any insured depository institution
described in clause (v) of subsection (b)(2)(A).’’.
SEC. 2707. ASSESSMENT RATES FOR SAIF MEMBERS MAY NOT BE LESS
THAN ASSESSMENT RATES FOR BIF MEMBERS.

Section 7(b)(2)(C) of the Federal Deposit Insurance Act (12
U.S.C. 1817(b)(2)(E), as redesignated by section 2704(d)(6) of this
subtitle) is amended—
(1) by striking ‘‘and’’ at the end of clause (i);
(2) by striking the period at the end of clause (ii) and
inserting ‘‘; and’’; and
(3) by adding at the end the following new clause:
‘‘(iii) notwithstanding any other provision of this
subsection, during the period beginning on the date
of enactment of the Deposit Insurance Funds Act of

110 STAT. 3009–497

PUBLIC LAW 104–208—SEPT. 30, 1996
1996, and ending on December 31, 1998, the assessment rate for a Savings Association Insurance Fund
member may not be less than the assessment rate
for a Bank Insurance Fund member that poses a comparable risk to the deposit insurance fund.’’.

SEC. 2708. ASSESSMENTS AUTHORIZED ONLY IF NEEDED TO MAINTAIN
THE RESERVE RATIO OF A DEPOSIT INSURANCE FUND.

(a) IN GENERAL.—Section 7(b)(2)(A)(i) of the Federal Deposit
Insurance Act (12 U.S.C. 1817(b)(2)(A)(i)) is amended in the matter
preceding subclause (I) by inserting ‘‘when necessary, and only
to the extent necessary’’ after ‘‘insured depository institutions’’.
(b) LIMITATION ON ASSESSMENT.—Section 7(b)(2)(A)(iii) of the
Federal Deposit Insurance Act (12 U.S.C. 1817(b)(2)(A)(iii)) is
amended to read as follows:
‘‘(iii) LIMITATION ON ASSESSMENT.—Except as provided in clause (v), the Board of Directors shall not
set semiannual assessments with respect to a deposit
insurance fund in excess of the amount needed—
‘‘(I) to maintain the reserve ratio of the fund
at the designated reserve ratio; or
‘‘(II) if the reserve ratio is less than the designated reserve ratio, to increase the reserve ratio
to the designated reserve ratio.’’.
(c) EXCEPTION TO LIMITATION ON ASSESSMENTS.—Section
7(b)(2)(A) of the Federal Deposit Insurance Act (12 U.S.C.
1817(b)(2)(A)) is amended by adding at the end the following new
clause:
‘‘(v) EXCEPTION TO LIMITATION ON ASSESSMENTS.—
The Board of Directors may set semiannual assessments in excess of the amount permitted under clauses
(i) and (iii) with respect to insured depository institutions that exhibit financial, operational, or compliance
weaknesses ranging from moderately severe to unsatisfactory, or are not well capitalized, as that term is
defined in section 38.’’.
SEC. 2709. TREASURY STUDY OF COMMON DEPOSITORY INSTITUTION
CHARTER.

(a) STUDY REQUIRED.—The Secretary of the Treasury shall
conduct a study of all issues which the Secretary considers to
be relevant with respect to the development of a common charter
for all insured depository institutions (as defined in section 3 of
the Federal Deposit Insurance Act) and the abolition of separate
and distinct charters between banks and savings associations.
(b) REPORT TO THE CONGRESS.—
(1) IN GENERAL.—The Secretary of the Treasury shall submit a report to the Congress on or before March 31, 1997,
containing the findings and conclusions of the Secretary in
connection with the study conducted pursuant to subsection
(a).
(2) DETAILED ANALYSIS AND RECOMMENDATIONS.—The
report under paragraph (1) shall include—
(A) a detailed analysis of each issue the Secretary
considered relevant to the subject of the study;

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–498

(B) recommendations of the Secretary with regard to
the establishment of a common charter for insured depository institutions (as defined in section 3 of the Federal
Deposit Insurance Act); and
(C) such recommendations for legislative and administrative action as the Secretary determines to be appropriate
to implement the recommendations of the Secretary under
subparagraph (B).
SEC. 2710. DEFINITIONS.

For purposes of this subtitle, the following definitions shall
apply:
(1) BANK INSURANCE FUND.—The term ‘‘Bank Insurance
Fund’’ means the fund established pursuant to section
(11)(a)(5)(A) of the Federal Deposit Insurance Act, as that section existed on the day before the date of enactment of this
Act.
(2) BIF MEMBER, SAIF MEMBER.—The terms ‘‘Bank Insurance Fund member’’ and ‘‘Savings Association Insurance Fund
member’’ have the same meanings as in section 7(l) of the
Federal Deposit Insurance Act.
(3) VARIOUS BANKING TERMS.—The terms ‘‘bank’’, ‘‘Board
of Directors’’, ‘‘Corporation’’, ‘‘deposit’’, ‘‘insured depository
institution’’, ‘‘Federal savings association’’, ‘‘savings association’’, ‘‘State savings bank’’, and ‘‘State depository institution’’
have the same meanings as in section 3 of the Federal Deposit
Insurance Act.
(4) DEPOSIT INSURANCE FUND.—The term ‘‘Deposit Insurance Fund’’ means the fund established under section 11(a)(4)
of the Federal Deposit Insurance Act (as amended by section
2704(d) of this subtitle).
(5) DEPOSITORY INSTITUTION HOLDING COMPANY.—The term
‘‘depository institution holding company’’ has the same meaning
as in section 3 of the Federal Deposit Insurance Act.
(6) DESIGNATED RESERVE RATIO.—The term ‘‘designated
reserve ratio’’ has the same meaning as in section 7(b)(2)(A)(iv)
of the Federal Deposit Insurance Act.
(7) SAIF.—The term ‘‘Savings Association Insurance Fund’’
means the fund established pursuant to section 11(a)(6)(A)
of the Federal Deposit Insurance Act, as that section existed
on the day before the date of enactment of this Act.
(8) SAIF-ASSESSABLE DEPOSIT.—The term ‘‘SAIF-assessable
deposit’’—
(A) means a deposit that is subject to assessment for
purposes of the Savings Association Insurance Fund under
the Federal Deposit Insurance Act (including a deposit
that is treated as insured by the Savings Association Insurance Fund under section 5(d)(3) of the Federal Deposit
Insurance Act); and
(B) includes any deposit described in subparagraph
(A) which is assumed after March 31, 1995, if the insured
depository institution, the deposits of which are assumed,
is not an insured depository institution when the special
assessment is imposed under section 2702(a).
SEC. 2711. DEDUCTION FOR SPECIAL ASSESSMENTS.

For purposes of subtitle A of the Internal Revenue Code of
1986—

12 USC 1821
note.

26 USC 162 note.

110 STAT. 3009–499

PUBLIC LAW 104–208—SEPT. 30, 1996

(1) the amount allowed as a deduction under section 162
of such Code for a taxable year shall include any amount
paid during such year by reason of an assessment under section
2702 of this subtitle, and
(2) section 172(f) of such Code shall not apply to any
deduction described in paragraph (1).

TITLE III—SPECTRUM ALLOCATION
PROVISIONS
SEC. 3001. COMPETITIVE BIDDING FOR SPECTRUM.

(a) COMMISSION OBLIGATION TO MAKE ADDITIONAL SPECTRUM
AVAILABLE.—The Federal Communications Commission shall—
(1) reallocate the use of frequencies at 2305–2320 megahertz and 2345–2360 megahertz to wireless services that are
consistent with international agreements concerning spectrum
allocations; and
(2) assign the use of such frequencies by competitive bidding pursuant to section 309(j) of the Communications Act
of 1934 (47 U.S.C. 309(j)).
(b) ADDITIONAL REQUIREMENTS.—In making the bands of frequencies described in subsection (a) available for competitive bidding, the Commission shall—
(1) seek to promote the most efficient use of the spectrum;
and
(2) take into account the needs of public safety radio services.
(c) EXPEDITED PROCEDURES.—The Commission shall commence
the competitive bidding for the assignment of the frequencies
described in subsection (a)(1) no later than April 15, 1997. The
rules governing such frequencies shall be effective immediately
upon publication in the Federal Register notwithstanding section
553(d), 801(a)(3), and 806(a) of title 5, United States Code. Chapter
6 of such title, and sections 3507 and 3512 of title 44, United
States Code, shall not apply to the rules and competitive bidding
procedures governing such frequencies. Notwithstanding section
309(b) of the Communications Act of 1934 (47 U.S.C. 309(b)), no
application for an instrument of authorization for such frequencies
shall be granted by the Commission earlier than 7 days following
issuance of public notice by the Commission of the acceptance
for filing of such application or of any substantial amendment
thereto. Notwithstanding section 309(d)(1) of such Act (47 U.S.C.
309(d)(1)), the Commission may specify a period (no less than
5 days following issuance of such public notice) for the filing of
petitions to deny any application for an instrument of authorization
for such frequencies.
(d) DEADLINE FOR COLLECTION.—The Commission shall conduct
the competitive bidding under subsection (a)(2) in a manner that
ensures that all proceeds of the bidding are deposited in accordance
with section 309(j)(8) of the Communications Act of 1934 not later
September 30, 1997.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–500

TITLE IV—ADJUSTMENT OF PAYGO
BALANCES
SEC. 4001. ADJUSTMENT OF PAYGO BALANCES.

For purposes of section 252 of the Balanced Budget and Emergency Deficit Control Act of 1985, on the calendar day after the
Director of the Office of Management and Budget issues the final
sequestration report for fiscal year 1997, the Director and the
Director of the Congressional Budget Office shall change the balances (as computed pursuant to section 252(b) of that Act) of direct
spending and receipts legislation—
(1) for fiscal year 1997 to zero if such balance for the
fiscal year is not an increase in the deficit.

TITLE V—ADDITIONAL
APPROPRIATIONS
CHAPTER 1
DEPARTMENT OF AGRICULTURE, RURAL DEVELOPMENT,
FOOD AND DRUG ADMINISTRATION, AND RELATED
AGENCIES
DEPARTMENT

OF

AGRICULTURE

COOPERATIVE STATE RESEARCH, EDUCATION, AND EXTENSION SERVICE
EXTENSION ACTIVITIES

For an additional amount for payments for cooperative extension work by the colleges receiving the benefits of the second Morrill
Act (7 U.S.C. 321–326, 328) and Tuskegee University, $753,000.
NATURAL RESOURCES CONSERVATION SERVICE
WATERSHED AND FLOOD PREVENTION OPERATIONS

For an additional amount to repair damages to the waterways
and watersheds resulting from the effects of Hurricanes Fran and
Hortense and other natural disasters, $63,000,000, to remain available until expended: Provided, That the entire amount is designated
by Congress as an emergency requirement pursuant to section
251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.
FARM SERVICE AGENCY
EMERGENCY CONSERVATION PROGRAM

For an additional amount for emergency expenses resulting
from the effects of Hurricanes Fran and Hortense and other natural
disasters, $25,000,000, to remain available until expended: Provided, That the entire amount is designated by Congress as an
emergency requirement pursuant to section 251(b)(2)(D)(i) of the
Balanced Budget and Emergency Deficit Control Act of 1985, as
amended.

110 STAT. 3009–501

PUBLIC LAW 104–208—SEPT. 30, 1996
CHAPTER 2
DISTRICT OF COLUMBIA

EDUCATION FACILITIES IMPROVEMENT IN THE DISTRICT OF COLUMBIA
(BY TRANSFER)

SEC. 5201. The District of Columbia Financial Responsibility
and Management Assistance Authority (referred to in this section
as the ‘‘Authority’’) shall have the authority to contract with a
private entity (or entities) to carry out a program of school facility
repair of public schools and public charter schools located in public
school facilities in the District of Columbia, in consultation with
the General Services Administration: Provided, That an amount
estimated to be $40,700,000 is hereby transferred and otherwise
made available to the Authority until expended for contracting
as provided under this section, to be derived from transfers and
reallocations as follows: (1) funds made available under the heading
‘‘PUBLIC EDUCATION SYSTEM’’ in Public Law 104–194 for school
repairs in a restricted line item; (2) all capital financing authority
made available for public school capital improvements in Public
Law 104–194; and (3) all capital financing authority made available
for public school capital improvements which are or remain available from Public Law 104–134 or any previous appropriations Act
for the District of Columbia: Provided further, That the General
Services Administration, in consultation with the District of Columbia Public Schools and the District of Columbia Council and subject
to the approval of the Authority and the Committees on Appropriations of the Senate and the House of Representatives, shall provide
program management services to assist in the short-term management of the repairs and capital improvements: Provided further,
That contracting authorized under this section shall be conducted
in accordance with Federal procurement rules and regulations and
guidelines or such guidelines as prescribed by the Authority.
SPECIAL RULES REGARDING GENERAL OBLIGATION BOND ACT

SEC. 5202. WAIVER OF CONGRESSIONAL REVIEW.—Notwithstanding section 602(c)(1) of the District of Columbia Self-Government
and Governmental Reorganization Act (sec. 1–233(c)(1), D.C. Code),
the General Obligation Bond Act of 1996 (D.C. Bill 11–840), if
enacted by the Council of the District of Columbia, shall take
effect on the date of the enactment of such Act or the date of
the enactment of this Act, whichever is later.
AMENDMENTS TO FINANCIAL RESPONSIBILITY AND MANAGEMENT
ASSISTANCE ACT

SEC. 5203. (a) CALCULATION OF 7-DAY REVIEW PERIOD FOR
COUNCIL ACTS.—Section 203(a)(5) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995 (sec.
47–392.3(a)(5), D.C. Code) is amended—
(1) by inserting ‘‘(excluding Saturdays, Sundays, and legal
holidays)’’ after ‘‘7-day period’’ the first place it appears; and
(2) by striking ‘‘the date the Council submits the Act to
the Authority’’ and inserting ‘‘the first day (excluding Saturdays, Sundays, and legal holidays) after the Authority receives
the Act from the Council’’.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–502

(b) SPECIFICATION OF PENALTY FOR PROHIBITED ACTS.—Section
103(i)(1) of such Act (sec. 47–391.3(i)(1), D.C. Code) is amended
by striking the period at the end and inserting the following: ‘‘,
and shall be fined not more than $1,000, imprisoned for not more
than 1 year, or both.’’.
(c) WAIVER OF PRIVACY ACT REQUIREMENTS FOR OBTAINING
OFFICIAL DATA.—Section 103(c)(1) of such Act (sec. 47–391.3(c)(1),
D.C. Code) is amended by striking ‘‘Act) and 552b’’ and inserting
‘‘Act), 552a (the Privacy Act of 1974), and 552b’’.
(d) PERMITTING AUTHORITY REVIEW OF RULEMAKING.—Section
203(b) of such Act (sec. 47–392.3(b), D.C. Code) is amended by
adding at the end the following new paragraph:
‘‘(5) APPLICATION TO RULES AND REGULATIONS.—The provisions of this subsection shall apply with respect to a rule
or regulation issued or proposed to be issued by the Mayor
(or the head of any department or agency of the District government) in the same manner as such provisions apply to a contract or lease.’’.
(e) DEPOSIT OF ALL DISTRICT BORROWING WITH AUTHORITY.—
(1) IN GENERAL.—Section 204 of such Act (sec. 47–392.4,
D.C. Code) is amended—
(A) by redesignating subsections (d) and (e) as subsections (e) and (f); and
(B) by inserting after subsection (c) the following new
subsection:
‘‘(d) DEPOSIT OF BORROWED FUNDS WITH AUTHORITY.—If the
District government borrows funds during a control year, the funds
shall be deposited into an escrow account held by the Authority,
to be allocated by the Authority to the Mayor at such intervals
and in accordance with such terms and conditions as it considers
appropriate, consistent with the financial plan and budget for the
year and with any other withholding of funds by the Authority
pursuant to this Act.’’.
(2) CONFORMING AMENDMENTS.—(A) Section 204(e) of such
Act, as redesignated by paragraph (1)(A), is amended by inserting after ‘‘(b)(1)’’ the following: ‘‘or the escrow account described
in subsection (d)’’.
(B) Section 206(d)(1) of such Act is amended by striking
‘‘204(b)’’ and inserting ‘‘204(b), section 204(d),’’.
(f) GRANTING AUTHORITY POWER TO ISSUE GENERAL ORDERS.—
Section 207 of such Act (sec. 47–392.7, D.C Code) is amended
by adding at the end the following new subsection:
‘‘(d) ADDITIONAL POWER TO ISSUE ORDERS, RULES, AND REGULATIONS.—
‘‘(1) IN GENERAL.—In addition to the authority described
in subsection (c), the Authority may at any time issue such
orders, rules, or regulations as it considers appropriate to carry
out the purposes of this Act and the amendments made by
this Act, to the extent that the issuance of such an order,
rule, or regulation is within the authority of the Mayor or
the head of any department or agency of the District government, and any such order, rule, or regulation shall be legally
binding to the same extent as if issued by the Mayor or the
head of any such department or agency.
‘‘(2) NOTIFICATION.—Upon issuing an order, rule, or regulation pursuant to this subsection, the Authority shall notify
the Mayor, the Council, the President, and Congress.

110 STAT. 3009–503

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(3) NO JUDICIAL REVIEW OF DECISION TO ISSUE ORDER.—
The decision by the Authority to issue an order, rule, or regulation pursuant to this subsection shall be final and shall not
be subject to judicial review.’’.
PROHIBITING FUNDING FOR TERMINATED EMPLOYEES OR
CONTRACTORS

SEC. 5204. (a) IN GENERAL.—Except as provided in subsection
(b), none of the funds made available to the District of Columbia
during any fiscal year (beginning with fiscal year 1996) may be
used to pay the salary or wages of any individual whose employment
by the District government is no longer required as determined
by the District of Columbia Financial Responsibility and Management Assistance Authority, or to pay any expenses associated with
a contractor or consultant of the District government whose contract
or arrangement with the District government is no longer required
as determined by the Authority.
(b) EXCEPTION FOR PAYMENTS FOR SERVICES ALREADY PROVIDED.—Funds made available to the District of Columbia may
be used to pay an individual for employment already performed
at the time of the Authority’s determination, or to pay a contractor
or consultant for services already provided at the time of the
Authority’s determination, to the extent permitted by the District
of Columbia Financial Responsibility and Management Assistance
Authority.
(c) DISTRICT GOVERNMENT DEFINED.—In this section, the term
‘‘District government’’ has the meaning given such term in section
305(5) of the District of Columbia Financial Responsibility and
Management Assistance Act of 1995.
AMENDMENTS TO DISTRICT OF COLUMBIA SCHOOL REFORM
ACT OF 1995.

SEC. 5205. (a) PROCESS FOR FILING CHARTER PETITIONS.—Section 2201 of the District of Columbia School Reform Act of 1995
(Public Law 104–134; 110 Stat. 1321–115) is amended by adding
at the end the following:
‘‘(d) LIMITATIONS ON FILING.—
‘‘(1) MULTIPLE CHARTERING AUTHORITIES.—An eligible
applicant may not file the same petition to establish a public
charter school with more than 1 eligible chartering authority
during a calendar year.
‘‘(2) MULTIPLE PETITIONS.—An eligible applicant may not
file more than 1 petition to establish a public charter school
during a calendar year.’’.
(b) CONTENTS OF PETITION.—Section 2202(6)(B) of the District
of Columbia School Reform Act of 1995 (110 Stat. 1321–116) is
amended to read as follows:
‘‘(B) either—
‘‘(i)(I) an identification of a facility for the school,
including a description of the site where the school
will be located, any buildings on the site, and any
buildings proposed to be constructed on the site, and
(II) information demonstrating that the eligible
applicant has acquired title to, or otherwise secured
the use of, the facility; or

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–504

‘‘(ii) a timetable by which an identification
described in clause (i)(I) will be made, and the information described in clause (i)(II) will be submitted, to
the eligible chartering authority;’’.
(c) PROCESS FOR APPROVING OR DENYING PUBLIC CHARTER
SCHOOL PETITIONS.—Section 2203 of the District of Columbia School
Reform Act of 1995 (110 Stat. 1321–118) is amended—
(1) by amending subsection (d) to read as follows:
‘‘(d) APPROVAL.—
‘‘(1) IN GENERAL.—Subject to subsection (i) and paragraph
(2), an eligible chartering authority shall approve a petition
to establish a public charter school, if—
‘‘(A) the eligible chartering authority determines that
the petition satisfies the requirements of this subtitle;
‘‘(B) the eligible applicant who filed the petition agrees
to satisfy any condition or requirement, consistent with
this subtitle and other applicable law, that is set forth
in writing by the eligible chartering authority as an amendment to the petition;
‘‘(C) the eligible chartering authority determines that
the public charter school has the ability to meet the educational objectives outlined in the petition; and
‘‘(D) the approval will not cause the eligible chartering
authority to exceed a limit under subsection (i).
‘‘(2) CONDITIONAL APPROVAL.—
‘‘(A) IN GENERAL.—In the case of a petition that does
not contain the identification and information required
under section 2202(6)(B)(i), but does contain the timetable
required under section 2202(6)(B)(ii), an eligible chartering
authority may only approve the petition on a conditional
basis, subject to the eligible applicant’s submitting the
identification and information described in section
2202(6)(B)(i) in accordance with such timetable, or any
other timetable specified in writing by the eligible chartering authority in an amendment to the petition.
‘‘(B) EFFECT OF CONDITIONAL APPROVAL.—For purposes
of subsections (e), (h), (i), and (j), a petition conditionally
approved under this paragraph shall be treated the same
as a petition approved under paragraph (1), except that
on the date that such a conditionally approved petition
ceases to be conditionally approved because the eligible
applicant has not timely submitted the identification and
information described in section 2202(6)(B)(i), the approval
of the petition shall cease to be counted for purposes of
subsection (i).’’;
(2) in subsection (h), by striking ‘‘(d)(2),’’ each place such
term appears and inserting ‘‘(d),’’;
(3) by amending subsection (i) to read as follows:
‘‘(i) NUMBER OF PETITIONS.—
‘‘(1) FIRST YEAR.—During calendar year 1996, not more
than 10 petitions to establish public charter schools may be
approved under this subtitle.
‘‘(2) SUBSEQUENT YEARS.—
‘‘(A) IN GENERAL.—Subject to subparagraph (B), during
calendar year 1997, and during each subsequent calendar
year, each eligible chartering authority shall not approve
more than 10 petitions to establish a public charter school

110 STAT. 3009–505

PUBLIC LAW 104–208—SEPT. 30, 1996

under this subtitle. Any such petition shall be approved
during the period that begins on January 1 and ends on
April 1.
‘‘(B) EXCEPTION.—If, by April 1 of any calendar year
after 1996, an eligible chartering authority has approved
fewer than 10 petitions during such calendar year, any
other eligible chartering authority may approve more than
10 petitions during such calendar year, but only if—
‘‘(i) the eligible chartering authority completes the
approval of any such additional petition before June
1 of the year; and
‘‘(ii) the approval of any such additional petition
will not cause the total number of petitions approved
by all eligible chartering authorities during the calendar year to exceed 20.’’; and
(4) by amending subsection (j) to read as follows:
‘‘(j) AUTHORITY OF ELIGIBLE CHARTERING AUTHORITY.—
‘‘(1) IN GENERAL.—Except as provided in paragraph (2),
and except for officers or employees of the eligible chartering
authority with which a petition to establish a public charter
school is filed, no governmental entity, elected official, or
employee of the District of Columbia shall make, participate
in making, or intervene in the making of, the decision to
approve or deny such a petition.
‘‘(2) AVAILABILITY OF REVIEW.—A decision by an eligible
chartering authority to deny a petition to establish a public
charter school shall be subject to judicial review by an appropriate court of the District of Columbia.’’.
(d) DISTRICT OF COLUMBIA PUBLIC SCHOOL SERVICES TO PUBLIC
CHARTER SCHOOLS.—Section 2209 of the District of Columbia School
Reform Act of 1995 (110 Stat. 1321–125) is amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before ‘‘The Superintendent’’; and
(2) by adding at the end the following:
‘‘(b) PREFERENCE IN LEASING OR PURCHASING PUBLIC SCHOOL
FACILITIES.—
‘‘(1) FORMER PUBLIC SCHOOL PROPERTY.—
‘‘(A) IN GENERAL.—Notwithstanding any other provision of law relating to the disposition of a facility or property described in subparagraph (B), the Mayor and the
District of Columbia Government shall give preference to
an eligible applicant whose petition to establish a public
charter school has been conditionally approved under section 2203(d)(2), or a Board of Trustees, with respect to
the purchase or lease of a facility or property described
in subparagraph (B), provided that doing so will not result
in a significant loss of revenue that might be obtained
from other dispositions or uses of the facility or property.
‘‘(B) PROPERTY DESCRIBED.—A facility or property
referred to in subparagraph (A) is a facility, or real property—
‘‘(i) that formerly was under the jurisdiction of
the Board of Education;
‘‘(ii) that the Board of Education has determined
is no longer needed for purposes of operating a District
of Columbia public school; and

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–506

‘‘(iii) with respect to which the Board of Education
has transferred jurisdiction to the Mayor.
‘‘(2) CURRENT PUBLIC SCHOOL PROPERTY.—
‘‘(A) IN GENERAL.—Notwithstanding any other provision of law relating to the disposition of a facility or property described in subparagraph (B), the Mayor and the
District of Columbia Government shall give preference to
an eligible applicant whose petition to establish a public
charter school has been conditionally approved under section 2203(d)(2), or a Board of Trustees, in leasing, or otherwise contracting for the use of, a facility or property
described in subparagraph (B).
‘‘(B) PROPERTY DESCRIBED.—A facility or property
referred to in subparagraph (A) is a facility, real property,
or a designated area of a facility or real property, that—
‘‘(i) is under the jurisdiction of the Board of Education; and
‘‘(ii) is available for use because the Board of Education is not using, for educational, administrative,
or other purposes, the facility, real property, or designated area.’’.
(e) CHARTER RENEWAL.—Section 2212 of the District of Columbia School Reform Act of 1995 (110 Stat. 1321–129) is amended—
(1) by amending subsection (a) to read as follows:
‘‘(a) TERMS.—
‘‘(1) INITIAL TERM.—A charter granted to a public charter
school shall remain in force for a 15-year period.
‘‘(2) RENEWALS.—A charter may be renewed for an unlimited number of times, each time for a 15-year period.
‘‘(3) REVIEW.—An eligible chartering authority that grants
or renews a charter pursuant to paragraph (1) or (2) shall
review the charter—
‘‘(A) at least once every 5 years to determine whether
the charter should be revoked for the reasons described
in subsection (a)(1)(A) or (b) of section 2213 in accordance
with the procedures for such revocation established under
section 2213(c); and
‘‘(B) once every 5 years, beginning on the date that
is 5 years after the date on which the charter is granted
or renewed, to determine whether the charter should be
revoked for the reasons described in section 2213(a)(1)(B)
in accordance with the procedures for such revocation
established under section 2213(c).’’; and
(2) by amending subsection (d)(6) to read as follows:
‘‘(6) JUDICIAL REVIEW.—A decision by an eligible chartering
authority to deny an application to renew a charter shall be
subject to judicial review by an appropriate court of the District
of Columbia.’’.
(f) CHARTER REVOCATION.—Section 2213(a) of the District of
Columbia School Reform Act of 1995 (110 Stat. 1321–130) is amended to read as follows:
‘‘(a) CHARTER OR LAW VIOLATIONS; FAILURE TO MEET GOALS.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), an eligible
chartering authority that has granted a charter to a public
charter school may revoke the charter if the eligible chartering
authority determines that the school—

110 STAT. 3009–507

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(A) committed a violation of applicable laws or a material violation of the conditions, terms, standards, or procedures set forth in the charter, including violations relating
to the education of children with disabilities; or
‘‘(B) failed to meet the goals and student academic
achievement expectations set forth in the charter.
‘‘(2) SPECIAL RULE.—An eligible chartering authority may
not revoke a charter under paragraph (1)(B), except pursuant
to a determination made through a review conducted under
section 2212(a)(3)(B).’’.
(g) PUBLIC CHARTER SCHOOL BOARD.—Paragraphs (3) and (4)
of section 2214(a) of the District of Columbia School Reform Act
of 1995 (110 Stat. 1321–132) are amended to read as follows:
‘‘(3) VACANCIES.—
‘‘(A) OTHER THAN FROM EXPIRATION OF TERM.—Where
a vacancy occurs in the membership of the Board for reasons other than the expiration of the term of a member
of the Board, the Secretary of Education, not later than
30 days after the vacancy occurs, shall present to the
Mayor a list of 3 people the Secretary determines are
qualified to serve on the Board. The Mayor, in consultation
with the District of Columbia Council, shall appoint 1
person from the list to serve on the Board. The Secretary
shall recommend, and the Mayor shall appoint, such member of the Board taking into consideration the criteria
described in paragraph (2). Any member appointed to fill
a vacancy occurring prior to the expiration of the term
of a predecessor shall be appointed only for the remainder
of the term.
‘‘(B) EXPIRATION OF TERM.—Not later than the date
that is 60 days before the expiration of the term of a
member of the Board, the Secretary of Education shall
present to the Mayor, with respect to each such impending
vacancy, a list of 3 people the Secretary determines are
qualified to serve on the Board. The Mayor, in consultation
with the District of Columbia Council, shall appoint 1
person from each such list to serve on the Board. The
Secretary shall recommend, and the Mayor shall appoint,
any member of the Board taking into consideration the
criteria described in paragraph (2).
‘‘(4) TIME LIMIT FOR APPOINTMENTS.—If, at any time, the
Mayor does not appoint members to the Board sufficient to
bring the Board’s membership to 7 within 30 days after receiving a recommendation from the Secretary of Education under
paragraph (2) or (3), the Secretary, not later than 10 days
after the final date for such mayoral appointment, shall make
such appointments as are necessary to bring the membership
of the Board to 7.’’.
(h) TECHNICAL AMENDMENT.—Section 2561(b) of the District
of Columbia School Reform Act of 1995 (Public Law 104–134),
as amended by section 148 of the District of Columbia Appropriations Act, 1997 (Public Law 104–194), is amended to read as follows:
‘‘(b) LIMITATION.—A waiver under subsection (a) shall not apply
to the Davis-Bacon Act (40 U.S.C. 276a et seq.) or Executive Order
11246 or other civil rights standards.’’.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–508

DISPOSITION OF CERTAIN SCHOOL PROPERTY BY AUTHORITY

SEC. 5206. (a) IN GENERAL.—Subtitle C of title II of the District
of Columbia Financial Responsibility and Management Assistance
Act of 1995 is amended by adding at the end the following new
section:
‘‘SEC. 225. DISPOSITION OF CERTAIN SCHOOL PROPERTY.

‘‘(a) POWER TO DISPOSE.—Notwithstanding any other provision
of law relating to the disposition of a facility or property described
in subsection (d), the Authority may dispose (by sale, lease, or
otherwise) of any facility or property described in subsection (d).
‘‘(b) PREFERENCE FOR PUBLIC CHARTER SCHOOLS.—In disposing
of a facility or property under this section, the Authority shall
give preference to an eligible applicant (as defined in section 2002
of the District of Columbia School Reform Act of 1995) whose
petition to establish a public charter school has been conditionally
approved under section 2203(d)(2) of such Act, or a Board of Trustees (as defined in section 2002 of such Act) of such a public charter
school, if doing so will not result in a significant loss of revenue
that might be obtained from other dispositions or uses of the facility
or property.
‘‘(c) USE OF PROCEEDS FROM DISPOSITION FOR SCHOOL REPAIR
AND MAINTENANCE.—
‘‘(1) IN GENERAL.—The Authority shall deposit any proceeds
of the disposition of a facility or property under this section
in the Board of Education Real Property Maintenance and
Improvement Fund (as established by the Real Property Disposal Act of 1990), to be used for the construction, maintenance,
improvement, rehabilitation, or repair of buildings and grounds
which are used for educational purposes for public and public
charter school students in the District of Columbia.
‘‘(2) CONSULTATION.—In disposing of a facility or property
under this section, the Authority shall consult with the Superintendent of Schools of the District of Columbia, the Mayor,
the Council, the Administrator of General Services, and education and community leaders involved in planning for an
agency or authority that will design and administer a comprehensive long-term program for repair and improvement of
District of Columbia public school facilities (as described in
section 2552(a) of the District of Columbia School Reform Act
of 1995).
‘‘(3) LEGAL EFFECT OF SALE.—The Authority may dispose
of a facility or property under this section by executing a
proper deed and any other legal instrument for conveyance
of title to the facility or property, and such deed shall convey
good and valid title to the purchaser of the facility or property.
‘‘(d) FACILITY OR PROPERTY DESCRIBED.—A facility or property
described in this subsection is a facility or property which is
described in section 2209(b)(1)(B) of the District of Columbia School
Reform Act of 1995 and with respect to which the Authority has
made the following determinations:
‘‘(1) The property is no longer needed for purposes of operating a District of Columbia public school (as defined in section
2002 of the District of Columbia School Reform Act of 1995).
‘‘(2) The disposition of the property is in the best interests
of education in the District of Columbia.

110 STAT. 3009–509

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(3) The Mayor (or any other department or agency of
the District government) has failed to make substantial
progress toward disposing the property during the 90-day period
which begins on the date the Board of Education transfers
jurisdiction over the property to the Mayor (or, in the case
of property which is described in section 2209(b)(1)(B) of such
Act as of the date of the enactment of this section, during
the 90-day period which begins on the date of the enactment
of this section).’’.
(b) CONTROL OVER BOARD OF EDUCATION REAL PROPERTY
MAINTENANCE AND IMPROVEMENT FUND.—
(1) IN GENERAL.—Section 2(b) of the Board of Education
Real Property Disposal Act of 1990 (sec. 9–402(b), D.C. Code)
is amended—
(A) by amending the second sentence to read as follows:
‘‘Subject to paragraph (6), the District of Columbia Financial Responsibility and Management Assistance Authority
shall administer the Fund and receive all payments into
the Fund that are required by law.’’; and
(B) by adding at the end the following new paragraph:
‘‘(6) Upon the establishment of an agency or authority within
the District of Columbia government to administer a public schools
facilities revitalization plan pursuant to section 2552(a)(2) of the
District of Columbia School Reform Act of 1995, such agency or
authority shall administer the Fund and receive all payments into
the Fund that are required by law.’’.
(2) CONFORMING AMENDMENTS.—Section 2(b) of the Board
of Education Real Property Disposal Act of 1990 (sec. 9–402(b),
D.C. Code) is amended—
(A) in the third sentence of paragraph (1), by striking
‘‘; provided that the Board’’ and all that follows and inserting a period; and
(B) by striking paragraph (5).
(c) CLERICAL AMENDMENT.—The table of contents of subtitle
C of title II of the District of Columbia Financial Responsibility
and Management Assistance Act of 1995 is amended by adding
at the end the following new item:
‘‘Sec. 225. Disposition of certain school property.’’.

CHAPTER 3
ENERGY AND WATER DEVELOPMENT
DEPARTMENT OF DEFENSE—CIVIL
DEPARTMENT OF THE ARMY
CORPS

OF

ENGINEERS—CIVIL

OPERATION AND MAINTENANCE, GENERAL

For an additional amount for ‘‘Operation and Maintenance,
General’’ for emergency expenses resulting from Hurricane Fran
and other natural disasters of 1996, $19,000,000, to remain available until expended: Provided: That such amount is designated
by Congress as an emergency requirement pursuant to section

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–510

251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.
GENERAL PROVISION
SEC. 5301. None of the funds appropriated in the Energy and
Water Development Appropriations Act, 1997 may be made available to the Tennessee Valley Authority if the Tennessee Valley
Authority is imposing a performance deposit in connection with
residential shoreline alteration permits.
CHAPTER 4
LEGISLATIVE BRANCH
HOUSE OF REPRESENTATIVES
SALARIES

AND

EXPENSES

(RESCISSION)

Immediately upon enactment of this Act, of the funds appropriated in the Legislative Branch Appropriations Act, 1996, for
the House of Representatives under the heading ‘‘SALARIES AND
EXPENSES’’, there is rescinded $500,000, specified for the following
heading and account:
(1) ‘‘ALLOWANCES AND EXPENSES’’, $500,000, as follows: (A) ‘‘Government contributions to employees’ life insurance fund, retirement funds, Social Security fund, Medicare
fund, health benefits fund, and worker’s and unemployment
compensation.’’
JOINT ITEMS
CAPITOL POLICE BOARD
CAPITOL POLICE
SALARIES
(RESCISSION)

Immediately upon enactment of this Act, of the funds appropriated under this heading in Public Law 104–53, $3,000,000 are
rescinded.
GENERAL EXPENSES

For an additional amount for the Capitol Police Board for
necessary expenses for the design and installation of security systems for the Capitol buildings and grounds, $3,250,000, which shall
remain available until expended.

110 STAT. 3009–511

PUBLIC LAW 104–208—SEPT. 30, 1996
ARCHITECT OF THE CAPITOL
CAPITOL BUILDINGS

AND

GROUNDS

CAPITOL BUILDINGS

For an additional amount for ‘‘Capitol Buildings and Grounds,
Capitol Buildings’’, $250,000, to remain available until expended,
for architectural and engineering services related to the design
and installation of security systems for Capitol buildings and
grounds.
SENATE OFFICE BUILDINGS

Of the funds appropriated under the heading, ‘‘ARCHITECT
OF THE CAPITOL, Capitol Buildings and Grounds, Senate office
buildings’’ in Public Law 104–53, $650,000 shall remain available
until September 30, 1997 for furniture, furnishings, and equipment
for the Senate employees’ child care center.
GENERAL PROVISIONS
CONGRESSIONAL AWARD ACT AMENDMENTS OF 1996

SEC. 5401. (a) EXTENSION OF REQUIREMENTS REGARDING FINANCIAL OPERATIONS OF CONGRESSIONAL AWARD PROGRAM; NONCOMPLIANCE WITH REQUIREMENTS.—Section 5(c)(2)(A) of the Congressional

2 USC 808 note.

Award Act (2 U.S.C. 804(c)(2)(A)) is amended by striking ‘‘and
1994’’ and inserting ‘‘1994, 1995, 1996, 1997, and 1998’’.
(b) TERMINATION.—Section 9 of the Congressional Award Act
(2 U.S.C. 808) is amended by striking ‘‘October 1, 1995’’ and inserting ‘‘October 1, 1999’’.
(c) SAVINGS PROVISIONS.—During the period of October 1, 1995,
through the date of the enactment of this section, all actions and
functions of the Congressional Award Board under the Congressional Award Act shall have the same effect as though no lapse
or termination of the Congressional Award Board ever occurred.
BILL EMERSON HALL IN THE HOUSE OF REPRESENTATIVES PAGE
SCHOOL

2 USC 141 note.

SEC. 5402. The Founders Hall instructional area in the House
of Representatives Page School, located in the Thomas Jefferson
Building of the Library of Congress, shall be known and designated
as ‘‘Bill Emerson Hall’’.
CHAPTER 5
DEPARTMENT OF TRANSPORTATION
FEDERAL AVIATION ADMINISTRATION
OPERATIONS
(AIRPORT AND AIRWAY TRUST FUND)

For additional operating expenses of the Federal Aviation
Administration for airport security activities, $57,900,000, to be
derived from the Airport and Airway Trust Fund and to remain
available until September 30, 1998: Provided, That of the funds

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–512

provided, $8,900,000 shall be for establishment of additional explosive detection K–9 teams at airports; $5,500,000 shall be for airport
vulnerability assessments; $18,000,000 shall be for the hire of additional aviation security personnel: and $25,500,000 shall be for
the hire of additional aviation safety inspectors and contract
weather observers, air traffic controller training, and implementation of recommendations of the Federal Aviation Administration’s
‘‘Ninety Day Safety Review’’, dated September 16, 1996: Provided
further, That such amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.
FACILITIES AND EQUIPMENT
(AIRPORT AND AIRWAY TRUST FUND)

For additional necessary expenses for ‘‘Facilities and Equipment’’, $147,700,000, to be derived from the Airport and Airway
Trust Fund and to remain available until September 30, 1999:
Provided, That of the funds provided, $144,200,000 shall only be
for non-competitive contracts or cooperative agreements with air
carriers and airport authorities, which provide for the Federal Aviation Administration to purchase and assist in installation of
advanced security equipment for the use of such entities and
$3,500,000 shall be for accelerated development and deployment
of the Online Aviation Safety Information System: Provided further,
That such amount is designated by Congress as an emergency
requirement pursuant to section 251(b)(2)(D)(i) of the Balanced
Budget and Emergency Deficit Control Act of 1985, as amended.
RESEARCH, ENGINEERING, AND DEVELOPMENT
(AIRPORT AND AIRWAY TRUST FUND)

For an additional amount for ‘‘Research, Engineering, and
Development’’, $21,000,000, to be derived from the Airport and
Airway Trust Fund and to remain available until September 30,
1999: Provided, That the funds provided shall only be for aviation
security research and operational testing of document trace scanners and explosive detection portals for airport passengers: Provided
further, That such amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.
GRANTS-IN-AID FOR AIRPORTS
(AIRPORT AND AIRWAY TRUST FUND)
(RESCISSION OF CONTRACT AUTHORIZATION)

Of the available contract authority balances under this heading,
$50,000,000 are rescinded.

110 STAT. 3009–513

PUBLIC LAW 104–208—SEPT. 30, 1996
FEDERAL HIGHWAY ADMINISTRATION
HIGHWAY-RELATED SAFETY GRANTS
(HIGHWAY TRUST FUND)
(RESCISSION OF CONTRACT AUTHORIZATION)

Of the available contract authority balances under this heading,
$9,100,000 are rescinded.
FEDERAL-AID HIGHWAYS
(HIGHWAY TRUST FUND)

For an additional amount for ‘‘Emergency Relief Program’’ for
emergency expenses resulting from Hurricanes Fran and Hortense
and for other disasters, as authorized by 23 U.S.C. 125, $82,000,000,
to be derived from the Highway Trust Fund and to remain available
until expended: Provided, That the entire amount is designated
by Congress as an emergency requirement pursuant to section
251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.
MOTOR CARRIER SAFETY GRANTS
(HIGHWAY TRUST FUND)
(RESCISSION OF CONTRACT AUTHORIZATION)

Of the available contract authority balances under this heading,
$12,300,000 are rescinded.
NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION
HIGHWAY TRAFFIC SAFETY GRANTS
(HIGHWAY TRUST FUND)
(RESCISSION OF CONTRACT AUTHORIZATION)

Of the available contract authority balances under this heading,
$11,800,000 are rescinded.
FEDERAL RAILROAD ADMINISTRATION
NORTHEAST CORRIDOR IMPROVEMENT PROGRAM

For additional necessary expenses related to Northeast Corridor
improvements authorized by title VII of the Railroad Revitalization
and Regulatory Reform Act of 1976, as amended (45 U.S.C. 851
et seq.) and 49 U.S.C. 24909, $60,000,000, to remain available
until September 30, 1999.
DIRECT LOAN FINANCING PROGRAM

Notwithstanding any other provision of law, $58,680,000, for
direct loans not to exceed $400,000,000 consistent with the purposes
of section 505 of the Railroad Revitalization and Regulatory Reform
Act of 1976 (45 U.S.C. 825) as in effect on September 30, 1988,
to the Alameda Corridor Transportation Authority to continue the

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–514

Alameda Corridor Project, including replacement of
lines with a below-grade corridor and widening of
major highway: Provided, That loans not to exceed
amounts shall be made on or after the first day
year indicated:

at-grade rail
the adjacent
the following
of the fiscal

Fiscal year 1997 .....................................................................................
Fiscal year 1998 .....................................................................................
Fiscal year 1999 .....................................................................................

$140,000,000
$140,000,000
$120,000,000

Provided further, That any loan authorized under this section shall
be structured with a maximum 30-year repayment after completion
of construction at an annual interest rate of not to exceed the
30-year United States Treasury rate and on such terms and conditions as deemed appropriate by the Secretary of Transportation:
Provided further, That specific provisions of section 505 (a), (b)
and (d) through (h) shall not apply: Provided further, That the
Alameda Corridor Transportation Authority shall be deemed to
be a financially responsible person for purposes of section 505
of the Act.
GRANTS TO THE NATIONAL RAILROAD PASSENGER CORPORATION

For additional expenses necessary for ‘‘Grants to the National
Railroad Passenger Corporation’’, $22,500,000 for operating losses,
to remain available until September 30, 1997: Provided, That
amounts made available shall only be used to continue service
on routes the National Railroad Passenger Corporation currently
plans to terminate.
RESEARCH

AND

SPECIAL PROGRAMS ADMINISTRATION

RESEARCH AND SPECIAL PROGRAMS

For additional expenses necessary for ‘‘Research and Special
Programs’’ to conduct vulnerability and threat assessments of the
nation’s transportation system, $3,000,000, to remain available until
September 30, 1999: Provided, That the entire amount is designated
by Congress as an emergency requirement pursuant to section
251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.
NATIONAL TRANSPORTATION SAFETY BOARD
SALARIES AND EXPENSES

For an additional amount for ‘‘Salaries and Expenses’’,
$6,000,000, to reimburse other federal agencies for previously
incurred costs of recovering wreckage from TWA flight 800, and
for other costs related to the TWA 800 accident investigation: Provided, That the entire amount is designated by Congress as an
emergency requirement pursuant to section 251(b)(2)(D)(i) of the
Balanced Budget and Emergency Deficit Control Act of 1985, as
amended.
EMERGENCY FUND

For necessary expenses of the National Transportation Safety
Board for accident investigations, including hire of passenger motor
vehicles and aircraft; services as authorized by 5 U.S.C. 3109,

110 STAT. 3009–515

PUBLIC LAW 104–208—SEPT. 30, 1996

but at rates for individuals not to exceed the per diem rate equivalent to the rate for a GS–18; uniforms, or allowances therefor,
as authorized by law (5 U.S.C. 5901–5902), $1,000,000: Provided,
That the entire amount is designated by Congress as an emergency
requirement pursuant to section 251(b)(2)(D)(i) of the Balanced
Budget and Emergency Deficit Control Act of 1985, as amended.
GENERAL PROVISIONS
SEC. 5501. In fiscal year 1997, the Administrator of the Federal
Aviation Administration may establish at individual airports such
consortia of government and aviation industry representatives as
the Administrator may designate to provide advice on matters
related to aviation security and safety: Provided, That such consortia shall not be considered Federal advisory committees.
SEC. 5502. In cases where an emergency ocean condition causes
erosion of a bank protecting a scenic highway or byway, fiscal
year 1996 or fiscal year 1997 Federal Highway Administration
Emergency Relief funds can be used to halt the erosion and stabilize
the bank if such action is necessary to protect the highway from
imminent failure and is less expensive than highway relocation.
SEC. 5503. Of the funds deducted under 23 U.S.C. subsection
104(a) for fiscal year 1997, $30,000,000 shall be available for allocation to States authorized by section 1069(y) of Public Law 102–
240.
SEC. 5504. CONVEYANCE OF PROPERTY IN TRAVERSE CITY,
MICHIGAN. (a) AUTHORITY TO CONVEY.—The Secretary of Transportation (or any other official having control over the property
described in subsection (b)) shall expeditiously convey to the Traverse City Area Public School District in Traverse City, Michigan,
without consideration, all right, title, and interest of the United
States in and to the property identified, described, and determined
by the Secretary under subsection (b), subject to all easements
and other interests in the property held by any other person.
(b) IDENTIFICATION OF PROPERTY.—The Secretary shall identify,
describe, and determine the property to be conveyed pursuant to
this section.
(c) REVERSIONARY INTEREST.—In addition to any term or condition established pursuant to subsection (a) or (d), any conveyance
of property described in subsection (b) shall be subject to the condition that all right, title, and interest in and to the property so
conveyed shall immediately revert to the United States if the property, or any part thereof, ceases to be used by the Traverse City
Area Public School District.
(d) TERMS OF CONVEYANCE.—The conveyance of property under
this section shall be subject to such conditions as the Secretary
considers to be necessary to assure that—
(1) the pump room located on the property shall continue
to be operated and maintained by the United States for as
long as it is needed for this purpose;
(2) the United States shall have an easement of access
to the property for the purpose of operating and maintaining
the pump room; and
(3) the United States shall have the right, at any time,
to enter the property without notice for the purpose of operating
and maintaining the pump room.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–516

SEC. 5505. AUTHORITY TO CONVEY WHITEFISH POINT LIGHT
STATION LAND.
(a) AUTHORITY TO CONVEY.—
(1) IN GENERAL.—Except as otherwise provided in this section, the Secretary of the Interior (in this section referred
to as the ‘‘Secretary’’) may convey, by an appropriate means
of conveyance, all right, title, and interest of the United States
in 1 of the 3 parcels comprising the land on which the United
States Coast Guard Whitefish Point Light Station is situated
(in this section referred to as the ‘‘Property’’), to each of the
Great Lakes Shipwreck Historical Society, located in Sault
Ste. Marie, Michigan, the United States Fish and Wildlife Service, and the Michigan Audubon Society (each of which is
referred to in this section as a ‘‘recipient’’), subject to all easements, conditions, reservations, exceptions, and restrictions contained in prior conveyances of record.
(2) LIMITATION.—Notwithstanding paragraph (1), the Secretary shall retain for the United States all right, title, and
interest in—
(A) any historical artifact, including any lens or lantern, and
(B) the light, antennas, sound signal, towers, associated
lighthouse equipment, and any electronic navigation equipment, which are active aids to navigation,
which is located on the Property, or which relates to the Property.
(3) IDENTIFICATION OF THE PROPERTY.—The Secretary may
identify, describe, and determine the parcels to be conveyed
pursuant to this section.
(4) RIGHTS OF ACCESS.—If necessary to ensure access to
a public roadway for a parcel conveyed under this section,
the Secretary shall convey with the parcel an appropriate
appurtenant easement over another parcel conveyed under this
section.
(5) EASEMENT FOR PUBLIC ALONG SHORELINE.—In each
conveyance under this section of property located on the shoreline of Lake Superior, the Secretary shall retain for the public,
for public walkway purposes, a right-of-way along the shoreline
that extends 30 feet inland from the mean high water line.
(b) TERMS AND CONDITIONS.—
(1) IN GENERAL.—Any conveyance pursuant to subsection
(a) shall be made—
(A) without payment of consideration; and
(B) subject to such terms and conditions as the Secretary considers appropriate.
(2) MAINTENANCE OF NAVIGATION FUNCTIONS.—The Secretary shall ensure that any conveyance pursuant to this section
is subject to such conditions as the Secretary considers to
be necessary to assure that—
(A) the light, antennas, sound signal, towers, and associated lighthouse equipment, and any electronic navigation
equipment, which are located on the Property and which
are active aids to navigation shall continue to be operated
and maintained by the United States for as long as they
are needed for this purpose;

110 STAT. 3009–517

PUBLIC LAW 104–208—SEPT. 30, 1996

(B) the recipients may not interfere or allow interference in any manner with such aids to navigation without
express written permission from the United States;
(C) there is reserved to the United States the right
to relocate, replace, or add any aids to navigation, or make
any changes on any portion of the Property as may be
necessary for navigation purposes;
(D) the United States shall have the right, at any
time, to enter the Property without notice for the purpose
of maintaining aids to navigation;
(E) the United States shall have—
(i) an easement of access to and across the Property
for the purpose of maintaining the aids to navigation
and associated equipment in use on the Property; and
(ii) an easement for an arc of visibility; and
(F) the United States shall not be responsible for the
cost and expense of maintenance, repair, and upkeep of
the Property.
(3) MAINTENANCE OBLIGATION.—The recipients shall not
have any obligation to maintain any active aid to navigation
equipment on any parcel conveyed pursuant to this section.
(c) PROPERTY TO BE MAINTAINED IN ACCORDANCE WITH CERTAIN LAWS.—Each recipient shall maintain the parcel conveyed
to the recipient pursuant to subsection (a) in accordance with the
provisions of the National Historic Preservation Act (16 U.S.C.
470 et seq.), and other applicable laws.
(d) MAINTENANCE STANDARD.—Each recipient shall maintain
the parcel conveyed to the recipient pursuant to subsection (a),
at its own cost and expense, in a proper, substantial, and
workmanlike manner, including the easements of access, the easement for an arc of visibility, the nuisance easement, and the underground easement.
(e) SHARED USE AND OCCUPANCY AGREEMENT.—The Secretary
shall require, as a condition of each conveyance of property under
this section, that all of the recipients have entered into the same
agreement governing the shared use and occupancy of the existing
Whitefish Point Light Station facilities. The agreement shall be
drafted by the recipients and shall include—
(1) terms governing building occupancy and access of recipient staff and public visitors to public restrooms, the auditorium,
and the parking lot; and
(2) terms requiring that each recipient shall be responsible
for paying a pro rata share of the costs of operating and
maintaining the existing Whitefish Point Light Station facilities, that is based on the level of use and occupancy of the
facilities by the recipient.
(f) LIMITATIONS ON DEVELOPMENT AND IMPAIRING USES.—It
shall be a term of each conveyance under this section that—
(1) no development of new facilities or expansion of existing
facilities or infrastructure on property conveyed under this
section may occur, except for purposes of implementing the
Whitefish Point Comprehensive Plan of October 1992 or for
a gift shop, unless—
(A) each of the recipients consents to the development
or expansion in writing;

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–518

(B) there has been a reasonable opportunity for public
comment on the development or expansion, and full consideration has been given to such public comment as is provided; and
(C) the development or expansion is consistent with
preservation of the Property in its predominantly natural,
scenic, historic, and forested condition; and
(2) any use of the Property or any structure located on
the property which may impair or interfere with the conservation values of the Property is expressly prohibited.
(g) REVISIONARY INTEREST.—
(1) IN GENERAL.—All right, title, and interests in and to
property and interests conveyed under this section shall revert
to the United States and thereafter be administered by the
Secretary of Interior acting through the Director of the United
States Fish and Wildlife Service, if—
(A) in the case of such property and interests conveyed
to the Great Lakes Shipwreck Historical Society, the property or interests cease to be used for the purpose of historical interpretation;
(B) in the case of such property and interests conveyed
to the Michigan Audubon Society, the property or interests
cease to be used for the purpose of environmental protection, research, and interpretation; or
(C) in the case any property and interests conveyed
to a recipient referred to in subparagraph (A) or (B)—
(i) there is any violation of any term or condition
of the conveyance to that recipient; or
(ii) the recipient has ceased to exist.
(2) AUTHORITY TO ENFORCE REVERSIONARY INTEREST.—The
Secretary of the Interior, acting through the Director of the
United States Fish and Wildlife Service, shall have the authority—
(A) to determine for the United States Government
whether any act or omission of a recipient results in a
reversion of property and interests under paragraph (1);
and
(B) to initiate a civil action to enforce that reversion,
after notifying the recipient of the intent of the Secretary
of the Interior to initiate that action.
(3) MAINTENANCE OF NAVIGATION FUNCTIONS.—In the event
of a reversion of property under this subsection, the Secretary
of the Interior shall administer the property subject to any
conditions the Secretary of Transportation considers to be necessary to maintain the navigation functions.
SEC. 5506. CONVEYANCE OF LIGHTHOUSES.
(a) AUTHORITY TO CONVEY.—
(1) IN GENERAL.—The Secretary of Transportation or the
Secretary of the Interior, as appropriate, shall convey, by an
appropriate means of conveyance, all right, title, and interest
of the United States in and to each of the following properties:
(A) Saint Helena Island Light Station, located in MacKinac County, Moran Township, Michigan, to the Great
Lakes Lighthouse Keepers Association.
(B) Presque Isle Light Station, located in Presque Isle
Township, Michigan, to Presque Isle Township, Presque
Isle County, Michigan.

110 STAT. 3009–519

PUBLIC LAW 104–208—SEPT. 30, 1996

(2) IDENTIFICATION OF PROPERTY.—The Secretary may identify, describe, and determine the property to be conveyed under
this subsection.
(3) EXCEPTION.—The Secretary may not convey any historical artifact, including any lens or lantern, located on the property at or before the time of the conveyance.
(b) TERMS OF CONVEYANCE.—
(1) IN GENERAL.—The conveyance of property under this
section shall be made—
(A) without payment of consideration; and
(B) subject to the conditions required by this section
and other terms and conditions the Secretary may consider
appropriate.
(2) REVERSIONARY INTEREST.—In addition to any term or
condition established under this section, the conveyance of property under this subsection shall be subject to the condition
that all right, title, and interest in the property shall immediately revert to the United States if—
(A) the property, or any part of the property—
(i) ceases to be used as a nonprofit center for
the interpretation and preservation of maritime history;
(ii) ceases to be maintained in a manner that
ensures its present or future use as a Coast Guard
aid to navigation; or
(iii) ceases to be maintained in a manner consistent
with the provisions of the National Historic Preservation Act of 1966 (16 U.S.C. 470 et seq.); or
(B) at least 30 days before that reversion, the Secretary
of Transportation provides written notice to the owner that
the property is needed for national security purposes.
(3) MAINTENANCE OF NAVIGATION FUNCTIONS.—A conveyance of property under this section shall be made subject to
the conditions that the Secretary of Transportation considers
to be necessary to assure that—
(A) the lights, antennas, sound signal, electronic
navigation equipment, and associated lighthouse equipment located on the property conveyed, which are active
aids to navigation, shall continue to be operated and maintained by the United States for as long as they are needed
for this purpose;
(B) the owner of the property may not interfere or
allow interference in any manner with aids to navigation
without express written permission from the Secretary of
Transportation;
(C) there is reserved to the United States the right
to relocate, replace or add any aid to navigation or make
any changes to the property as may be necessary for
navigational purposes;
(D) the United States shall have the right, at any
time, to enter the property without notice for the purpose
of maintaining aids to navigation; and
(E) the United States shall have an easement of access
to and across the property for the purpose of maintaining
the aids to navigation in use on the property.

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110 STAT. 3009–520

(4) OBLIGATION LIMITATION.—The owner of property conveyed under this section is not required to maintain any active
aid to navigation equipment on the property.
(5) PROPERTY TO BE MAINTAINED IN ACCORDANCE WITH CERTAIN LAWS.—The owner of property conveyed under this section
shall maintain the property in accordance with the National
Historic Preservation Act of 1966 (16 U.S.C. 470 et seq.) and
other applicable laws.
(c) MAINTENANCE STANDARD.—The owner of any property conveyed under this section, at its own cost and expense, shall maintain
the property in a proper, substantial, and workmanlike manner.
(d) DEFINITIONS.—For purposes of this section:
(1) the term ‘‘owner’’ means the person identified in subsection a(1)(A) and (B), and includes any successor of assign
of that person.
(2) The term ‘‘Presque Isle Light Station’’ includes the
light tower, attached dwelling, detached dwelling, 3-car garage,
and any other improvements on that parcel of land.
CHAPTER 6
DEPARTMENT OF THE TREASURY
COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS
COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND PROGRAM
ACCOUNT

For an additional amount for ‘‘Community Development Financial Institutions Fund Program Account’’ for grants, loans, and
technical assistance to qualifying community development lenders,
$5,000,000, to remain available until September 30, 1998, of which
$850,000 may be used for the cost of direct loans: Provided, That
the cost of direct loans, including the cost of modifying such loans,
shall be as defined in section 502 of the Congressional Budget
Act of 1974.
ENVIRONMENTAL PROTECTION AGENCY
SCIENCE AND TECHNOLOGY

For an additional amount for ‘‘Science and Technology’’,
$10,000,000, to remain available until September 30, 1998, to conduct health effects research to carry out the purposes of the Safe
Drinking Water Act Amendments of 1996, Public Law 104–182.
ENVIRONMENTAL PROGRAMS AND MANAGEMENT

For an additional amount for ‘‘Environmental Programs and
Management’’, $42,221,000, to remain available until September
30, 1998, of which $30,000,000 is to carry out the purposes of
the Safe Drinking Water Act Amendments of 1996, Public Law
104–182, and the purposes of the Food Quality Protection Act
of 1996, Public Law 104–170, and of which $10,221,000 is for
pesticide residue data collection for use in risk assessment activities.

110 STAT. 3009–521

PUBLIC LAW 104–208—SEPT. 30, 1996
STATE AND TRIBAL ASSISTANCE GRANTS

For an additional amount for ‘‘State and Tribal Assistance
Grants’’, $35,000,000, to remain available until expended, for a
grant to the City of Boston, Massachusetts, subject to an appropriate
cost share as determined by the Administrator, for the construction
of wastewater treatment facilities.
FEDERAL EMERGENCY MANAGEMENT AGENCY
SALARIES AND EXPENSES

For an additional amount for ‘‘Salaries and Expenses’’ to
increase Federal, State, and local preparedness for mitigating and
responding to the consequences of terrorism, $3,000,000.
EMERGENCY MANAGEMENT PLANNING AND ASSISTANCE

For an additional amount for ‘‘Emergency Management Planning and Assistance’’ to increase Federal, State, and local preparedness for mitigating and responding to the consequences of terrorism,
$12,000,000.
NATIONAL FLOOD INSURANCE FUND

Section 1309(a)(2) of the National Flood Insurance Act (42
U.S.C. 4016(a)(2)), is amended by striking ‘‘$1,000,000,000’’ and
inserting in lieu thereof ‘‘$1,500,000,000 through September 30,
1997, and $1,000,000,000 thereafter’’.
DEPARTMENT

OF

HEALTH

AND

HUMAN SERVICES

OFFICE OF CONSUMER AFFAIRS

For necessary expenses of the Office of Consumer Affairs,
including services authorized by 5 U.S.C. 3109, but at rates for
individuals not to exceed the per diem rate equivalent to the rate
for GS–18, $1,500,000: Provided, That none of the funds provided
under this heading may be made available for any other activities
within the Department of Health and Human Services.
NATIONAL AERONAUTICS

AND

SPACE ADMINISTRATION

SCIENCE, AERONAUTICS AND TECHNOLOGY

For an additional amount for ‘‘Science, Aeronautics and Technology’’, $5,000,000, to remain available until September 30, 1998.
CHAPTER 7
INTERNATIONAL SECURITY ASSISTANCE
NONPROLIFERATION, ANTI-TERRORISM, DEMINING AND RELATED
PROGRAMS

For an additional amount for nonproliferation, anti-terrorism
and related programs and activities, $18,000,000, to carry out the
provisions of chapter 8 of part II of the Foreign Assistance Act
of 1961 for anti-terrorism assistance.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–522

FOREIGN MILITARY FINANCING PROGRAM

For an additional amount for grants to enable the President
to carry out the provisions of section 23 of the Arms Export Control
Act, $60,000,000.
PEACEKEEPING OPERATIONS

For necessary expenses to carry out the provisions of section
551 of the Foreign Assistance Act of 1961, $65,000,000: Provided,
That none of the funds appropriated under this paragraph shall
be obligated or expended except as provided through the regular
notification procedures of the Committees on Appropriations.
CHAPTER 8
GENERAL PROVISIONS
SEC. 5801. Of the amounts made available in Title IV of the
Department of Defense Appropriations Act, 1997, under the heading
‘‘Research, Development, Test and Evaluation, Defense-Wide’’,
$56,232,000 shall be made available only for the Corps Surfaceto-Air Missile (CORPS SAM) program.
SEC. 5802. There is hereby established on the books of the
Treasury an account, ‘‘Support for International Sporting Competitions, Defense’’ (hereinafter referred to in this section as the
‘‘Account’’) to be available until expended for logistical and security
support for international sporting competitions (other than pay
and non-travel-related allowances of members of the Armed Forces
of the United States, except for members of the reserve components
thereof called or ordered to active duty in connection with providing
such support): Provided, That there shall be credited to the Account:
(a) unobligated balances of the funds appropriated in Public Laws
103–335 and 104–61 under the headings ‘‘Summer Olympics’’; (b)
any reimbursements received by the Department of Defense in
connection with support to the 1993 World University Games; the
1994 World Cup Games; and the 1996 Games of the XXVI Olympiad
held in Atlanta, Georgia; (c) any reimbursements received by the
Department of Defense after the date of enactment of this Act
for logistical and security support provided to international sporting
competitions; and (d) amounts specifically appropriated to the
Account, all to remain available until expended: Provided further,
That none of the funds made available to the Account may be
obligated until 45 days after the congressional defense committees
have been notified in writing by the Secretary of Defense as to
the purpose for which these funds will be obligated.
SEC. 5803. In addition to the amounts made available in Title
IV of the Department of Defense Appropriations Act, 1997, under
the heading ‘‘Research, Development, Test and Evaluation, DefenseWide’’, $100,000,000 is hereby appropriated and made available
only for the Dual-Use Applications Program.

10 USC 2012
note.

110 STAT. 3009–523
Oregon Resource
Conservation Act
of 1996.

PUBLIC LAW 104–208—SEPT. 30, 1996

DIVISION B—OREGON RESOURCE
CONSERVATION ACT OF 1996
SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘Oregon Resource Conservation
Act of 1996’’.
Opal Creek
Wilderness and
Opal Creek
Scenic Recreation
Area Act of 1996.
16 USC 545b
note.

TITLE I—OPAL CREEK WILDERNESS
AND SCENIC RECREATION AREA
SEC. 101. SHORT TITLE.

This title may be cited as the ‘‘Opal Creek Wilderness and
Opal Creek Scenic Recreation Area Act of 1996’’.
SEC. 102. DEFINITIONS.

In this title:
(1) BULL OF THE WOODS WILDERNESS.—The term ‘‘Bull of
the Woods Wilderness’’ means the land designated as wilderness by section 3(4) of the Oregon Wilderness Act of 1984
(Public Law 98–328; 16 U.S.C. 1132 note).
(2) OPAL CREEK WILDERNESS.—The term ‘‘Opal Creek
Wilderness’’ means certain land in the Willamette National
Forest in the State of Oregon comprising approximately 12,800
acres, as generally depicted on the map entitled ‘‘Proposed
Opal Creek Wilderness and Scenic Recreation Area’’, dated
July 1996.
(3) SCENIC RECREATION AREA.—The term ‘‘Scenic Recreation
Area’’ means the Opal Creek Scenic Recreation Area, comprising approximately 13,000 acres, as generally depicted on the
map entitled ‘‘Proposed Opal Creek Wilderness and Scenic
Recreation Area’’, dated July 1996 and established under section 104(a)(3) of this title.
(4) SECRETARY.—The term ‘‘Secretary’’ means the Secretary
of Agriculture.
SEC. 103. PURPOSES.

The purposes of this title are:
(1) to establish a wilderness and scenic recreation area
to protect and provide for the enhancement of the natural,
scenic, recreational, historic, and cultural resources of the area
in the vicinity of Opal Creek;
(2) to protect and support the economy of the communities
in the Santiam Canyon; and
(3) to provide increased protection for an important drinking water source for communities served by the north Santiam
River.
16 USC 1132
note.

SEC. 104. ESTABLISHMENT OF OPAL CREEK WILDERNESS AND SCENIC
RECREATION AREA.

(a) ESTABLISHMENT.—On a determination by the Secretary
under subsection (b)—
(1) the Opal Creek Wilderness, as depicted on the map
described in section 102(2), is hereby designated as wilderness,
subject to the provisions of the Wilderness Act of 1964, shall

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–524

become a component of the National Wilderness System, and
shall be known as the Opal Creek Wilderness;
(2) the part of the Bull of the Woods Wilderness that
is located in the Willamette National Forest shall be incorporated into the Opal Creek Wildnerness; and
(3) the Secretary shall establish the Opal Creek Scenic
Recreation Area in the Willamette National Forest in the State
of Oregon, comprising approximately 13,000 acres, as generally
depicted on the map described in section 102(3).
(b) CONDITIONS.—The designations in subsection (a) shall not
take effect unless the Secretary makes a determination, not later
than 2 years after the date of enactment of this title, that the
following conditions have been met:
(1) the following have been donated to the United States
in an acceptable condition and without encumbrances—
(A) all right, title, and interest in the following patented parcels of land—
(i) Santiam number 1, mineral survey number 992,
as described in patent number 39–92–0002, dated
December 11, 1991;
(ii) Ruth Quartz Mine number 2, mineral survey
number 994, as described in patent number 39–91–
0012, dated February 12, 1991;
(iii) Morning Star Lode, mineral survey number
993, as described in patent number 36–91–0011, dated
February 12, 1991;
(B) all right, title, and interest held by any entity
other than the Times Mirror Land and Timber Company,
its successors and assigns, in and to lands located in section
18, township 8 south, range 5 east, Marion County, Oregon,
Eureka numbers 6, 7, 8, and 13 mining claims; and
(C) an easement across the Hewitt, Starvation, and
Poor Boy Mill Sites, mineral survey number 990, as
described in patent number 36–91–0017, dated May 9,
1991. In the sole discretion of the Secretary, such easement
may be limited to administrative use if an alternative
access route, adequate and appropriate for public use, is
provided.
(2) a binding agreement has been executed by the Secretary
and the owners of record as of March 29, 1996, of the following
interests, specifying the terms and conditions for the disposition
of such interests to the United States Government—
(A) the lode mining claims known as Princess Lode,
Black Prince Lode, and King number 4 Lode, embracing
portions of sections 29 and 32, township 8 south, range
5 east, Willamette Meridian, Marion County, Oregon, the
claims being more particularly described in the field notes
and depicted on the plat of mineral survey number 887,
Oregon; and
(B) Ruth Quartz Mine number 1, mineral survey number 994, as described in patent number 39–91–0012, dated
February 12, 1991.
(c) ADDITIONS TO THE WILDERNESS AND SCENIC RECREATION
AREAS.—
(1) Lands or interests in lands conveyed to the United
States under this section shall be included in and become

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part of, as appropriate, Opal Creek Wilderness or the Opal
Creek Scenic Recreation Area.
(2) On acquiring all or substantially all of the land located
in section 36, township 8 south, range 4 east, of the Willamette
Meridian, Marion County, Oregon, commonly known as the
Rosboro section, by exchange, purchase from a willing seller,
or by donation, the Secretary shall expand the boundary of
the Scenic Recreation Area to include such land.
(3) On acquiring all or substantially all of the land located
in section 18, township 8 south, range 5 east, Marion County,
Oregon, commonly known as the Times Mirror property, by
exchange, purchase from a willing seller, or by donation, such
land shall be included in and become a part of the Opal Creek
Wilderness.
SEC. 105. ADMINISTRATION OF THE SCENIC RECREATION AREA.

(a) IN GENERAL.—The Secretary shall administer the Scenic
Recreation Area in accordance with this title and the laws (including
regulations) applicable to the National Forest System.
(b) OPAL CREEK MANAGEMENT PLAN.—
(1) IN GENERAL.—Not later than 2 years after the date
of establishment of the Scenic Recreation Area, the Secretary,
in consultation with the advisory committee established under
section 106(a), shall prepare a comprehensive Opal Creek
Management Plan (Management Plan) for the Scenic Recreation
Area.
(2) INCORPORATION IN LAND AND RESOURCE MANAGEMENT
PLAN.—Upon its completion, the Opal Creek Management Plan
shall become part of the land and resource management plan
for the Willamette National Forest and supersede any conflicting provision in such land and resource management plan.
Nothing in this paragraph shall be construed to supersede
the requirements of the Endangered Species Act or the National
Forest Management Act or regulations promulgated under those
Acts, or any other law.
(3) REQUIREMENTS.—The Opal Creek Management Plan
shall provide for a broad range of land uses, including—
(A) recreation;
(B) harvesting of nontraditional forest products, such
as gathering mushrooms and material to make baskets;
and
(C) educational and research opportunities.
(4) PLAN AMENDMENTS.—The Secretary may amend the
Opal Creek Management Plan as the Secretary may determine
to be necessary, consistent with the procedures and purposes
of this title.
(c) RECREATION.—
(1) RECOGNITION.—Congress recognizes recreation as an
appropriate use of the Scenic Recreation Area.
(2) MINIMUM LEVELS.—The management plan shall permit
recreation activities at not less than the levels in existence
on the date of enactment of this title.
(3) HIGHER LEVELS.—The management plan may provide
for levels of recreation use higher than the levels in existence
on the date of enactment of this title if such uses are consistent
with the protection of the resource values of Scenic Recreation
Area.

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110 STAT. 3009–526

(4) The management plan may include public trail access
through section 28, township 8 south, range 5 east, Willamette
Meridian, to Battle Axe Creek, Opal Pool and other areas
in the Opal Creek Wilderness and the Opal Creek Scenic Recreation Area.
(d) TRANSPORTATION PLANNING.—
(1) IN GENERAL.—Except as provided in this subparagraph,
motorized vehicles shall not be permitted in the Scenic Recreation Area. To maintain reasonable motorized and other access
to recreation sites and facilities in existence on the date of
enactment of this title, the Secretary shall prepare a transportation plan for the Scenic Recreation Area that:
(A) evaluates the road network within the Scenic Recreation Area to determine which roads should be retained
and which roads should be closed;
(B) provides guidelines for transportation and access
consistent with this title;
(C) considers the access needs of persons with disabilities in preparing the transportation plan for the Scenic
Recreation Area;
(D) allows forest road 2209 beyond the gate to the
Scenic Recreation Area, as depicted on the map described
in 102(2), to be used by motorized vehicles only for administrative purposes and for access by private inholders, subject
to such terms and conditions as the Secretary may determine to be necessary; and
(E) restricts construction on or improvements to forest
road 2209 beyond the gate to the Scenic Recreation Area
to maintaining the character of the road as it existed
upon the date of enactment of this title, which shall not
include paving or widening. In order to comply with subsection 107(b) of this title, the Secretary may make
improvements to forest road 2209 and its bridge structures
consistent with the character of the road as it existed
on the date of enactment of this title.
(e) HUNTING AND FISHING.—
(1) IN GENERAL.—Subject to applicable Federal and State
law, the Secretary shall permit hunting and fishing in the
Scenic Recreation Area.
(2) LIMITATION.—The Secretary may designate zones in
which, and establish periods when, no hunting or fishing shall
be permitted for reasons of public safety, administration, or
public use and enjoyment of the Scenic Recreation Area.
(3) CONSULTATION.—Except during an emergency, as determined by the Secretary, the Secretary shall consult with the
Oregon State Department of Fish and Wildlife before issuing
any regulation under this subsection.
(f) TIMBER CUTTING.—
(1) IN GENERAL.—Subject to paragraph (2), the Secretary
shall prohibit the cutting and/or selling of trees in the Scenic
Recreation Area.
(2) PERMITTED CUTTING.—
(A) IN GENERAL.—Subject to subparagraph (B), the Secretary may allow the cutting of trees in the Scenic Recreation Area only—
(i) for public safety, such as to control the continued spread of a forest fire in the Scenic Recreation

110 STAT. 3009–527

PUBLIC LAW 104–208—SEPT. 30, 1996

Area or on land adjacent to the Scenic Recreation
Area;
(ii) for activities related to administration of the
Scenic Recreation Area, consistent with the Opal Creek
Management Plan; or
(iii) for removal of hazard trees along trails and
roadways.
(B) SALVAGE SALES.—The Secretary may not allow a
salvage sale in the Scenic Recreation Area.
(g) WITHDRAWAL.—
(1) Subject to valid existing rights, all lands in the Scenic
Recreation Area are withdrawn from—
(i) any form of entry, appropriation, or disposal under
the public land laws;
(ii) location, entry, and patent under the mining laws;
and
(iii) disposition under the mineral and geothermal leasing laws.
(h) BORNITE PROJECT.—
(1) Nothing in this title shall be construed to interfere
with or approve any exploration, mining, or mining-related
activity in the Bornite Project Area, depicted on the map
described in subsection 102(3), conducted in accordance with
applicable laws.
(2) Nothing in this title shall be construed to interfere
with the ability of the Secretary to approve and issue, or
deny, special use permits in connection with exploration, mining, and mining-related activities in the Bornite Project Area.
(3) Motorized vehicles, roads, structures, and utilities
(including but not limited to power lines and water lines) may
be allowed inside the Scenic Recreation Area to serve the activities conducted on land within the Bornite Project.
(4) After the date of enactment of this title, no patent
or claim shall be issued for any mining claim under the general
mining laws located within the Bornite Project Area.
(i) WATER IMPOUNDMENTS.—Notwithstanding the Federal
Power Act (16 U.S.C. 791a et seq.), the Federal Energy Regulatory
Commission may not license the construction of any dam, water
conduit, reservoir, powerhouse, transmission line, or other project
work in the Scenic Recreation Area, except as may be necessary
to comply with the provisions of subsection 105(h) with regard
to the Bornite Project.
(j) CULTURAL AND HISTORIC RESOURCE INVENTORY.—
(1) IN GENERAL.—Not later than 1 year after the date
of establishment of the Scenic Recreation Area, the Secretary
shall review and revise the inventory of the cultural and historic
resources on the public land in the Scenic Recreation Area
developed pursuant to the Oregon Wilderness Act of 1984 (Public Law 98–328; 16 U.S.C. 1132).
(2) INTERPRETATION.—Interpretive activities shall be developed under the management plan in consultation with State
and local historic preservation organizations and shall include
a balanced and factual interpretation of the cultural, ecological,
and industrial history of forestry and mining in the Scenic
Recreation Area.
(k) PARTICIPATION.—So that the knowledge, expertise, and
views of all agencies and groups may contribute affirmatively to

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110 STAT. 3009–528

the most sensitive present and future use of the Scenic Recreation
Area and its various subareas for the benefit of the public:
(1) ADVISORY COUNCIL.—The Secretary shall consult on
a periodic and regular basis with the advisory council established under section 106 with respect to matters relating to
management of the Scenic Recreation Area.
(2) PUBLIC PARTICIPATION.—The Secretary shall seek the
views of private groups, individuals, and the public concerning
the Scenic Recreation Area.
(3) OTHER AGENCIES.—The Secretary shall seek the views
and assistance of, and cooperate with, any other Federal, State,
or local agency with any responsibility for the zoning, planning,
or natural resources of the Scenic Recreation Area.
(4) NONPROFIT AGENCIES AND ORGANIZATIONS.—The Secretary shall seek the views of any nonprofit agency or organization that may contribute information or expertise about the
resources and the management of the Scenic Recreation Area.
SEC. 106. ADVISORY COUNCIL.

(a) ESTABLISHMENT.—Not later than 90 days after the establishment of the Scenic Recreation Area, the Secretary shall establish
an advisory council for the Scenic Recreation Area.
(b) MEMBERSHIP.—The advisory council shall consist of not
more than 13 members, of whom—
(1) 1 member shall represent Marion County, Oregon, and
shall be designated by the governing body of the county;
(2) 1 member shall represent the State of Oregon and
shall be designated by the Governor of Oregon; and
(3) 1 member shall represent the city of Salem, and shall
be designated by the mayor of Salem, Oregon;
(4) 1 member from a city within a 25-mile radius of the
Opal Creek Scenic Recreation Area, to be designated by the
Governor of the State of Oregon from a list of candidates
provided by the mayors of the cities located within a 25-mile
radius of the Opal Creek Scenic Recreation Area; and
(5) not more than 9 members shall be appointed by the
Secretary from among persons who, individually or through
association with a national or local organization, have an
interest in the administration of the Scenic Recreation Area,
including, but not limited to, representatives of the timber
industry, environmental organizations, the mining industry,
inholders in the Opal Creek Wilderness and Scenic Recreation
Area, economic development interests and Indian Tribes.
(c) STAGGERED TERMS.—Members of the advisory council shall
serve for staggered terms of three years.
(d) CHAIRMAN.—The Secretary shall designate one member of
the advisory council as chairman.
(e) VACANCIES.—The Secretary shall fill a vacancy on the
advisory council in the same manner as the original appointment.
(f) COMPENSATION.—Members of the advisory council shall
receive no compensation for service on the advisory council.
SEC. 107. GENERAL PROVISIONS.

(a) LAND ACQUISITION.—
(1) IN GENERAL.—Subject to the other provisions of this
title the Secretary may acquire any lands or interests in land
in the Scenic Recreation Area or the Opal Creek Wilderness

110 STAT. 3009–529

PUBLIC LAW 104–208—SEPT. 30, 1996

that the Secretary determines are needed to carry out this
title.
(2) PUBLIC LAND.—Any lands or interests in land owned
by a State or a political subdivision of a State may be acquired
only by donation or exchange.
(3) CONDEMNATION.—Within the boundaries of the Opal
Creek Wilderness or the Scenic Recreation Area, the Secretary
may not acquire any privately owned land or interest in land
without the consent of the owner unless the Secretary finds
that—
(A) the nature of land use has changed significantly,
or the landowner has demonstrated intent to change the
land use significantly, from the use that existed on the
date of the enactment of this title; and
(B) acquisition by the Secretary of the land or interest
in land is essential to ensure use of the land or interest
in land in accordance with the purposes of this title or
the management plan prepared under section 105(b).
(4) Nothing in this title shall be construed to enhance
or diminish the condemnation authority available to the Secretary outside the boundaries of the Opal Creek Wilderness
or the Scenic Recreation Area.
(b) ENVIRONMENTAL RESPONSE ACTIONS AND COST RECOVERY.—
(1) RESPONSE ACTIONS.—Nothing in this title shall limit
the authority of the Secretary or a responsible party to conduct
an environmental response action in the Scenic Recreation Area
in connection with the release, threatened release, or cleanup
of a hazardous substance, pollutant, or contaminant, including
a response action conducted under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42
U.S.C. 9601 et seq.).
(2) LIABILITY.—Nothing in this title shall limit the authority of the Secretary or a responsible party to recover costs
related to the release, threatened release, or cleanup of any
hazardous substance or pollutant or contaminant in the Scenic
Recreation Area.
(c) MAPS AND DESCRIPTION.—
(1) IN GENERAL.—As soon as practicable after the date
of enactment of this title, the Secretary shall file a map and
a boundary description for the Opal Creek Wilderness and
for the Scenic Recreation Area with the Committee on
Resources of the House of Representatives and the Committee
on Energy and Natural Resources of the Senate.
(2) FORCE AND EFFECT.—The boundary description and map
shall have the same force and effect as if the description and
map were included in this title, except that the Secretary
may correct clerical and typographical errors in the boundary
description and map.
(3) AVAILABILITY.—The map and boundary description shall
be on file and available for public inspection in the Office
of the Chief of the Forest Service, Department of Agriculture.
(d) Nothing in this title shall interfere with any activity for
which a special use permit has been issued, has not been revoked,
and has not expired, before the date of enactment of this title,
subject to the terms of the permit.

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110 STAT. 3009–530

SEC. 108. ROSBORO LAND EXCHANGE.

(a) AUTHORIZATION.—Notwithstanding any other law, if the
Rosboro Lumber Company (referred to in this section as ‘‘Rosboro’’)
offers and conveys marketable title to the United States to the
land described in subsection (b), the Secretary of Agriculture shall
convey all right, title and interest held by the United States to
sufficient lands described in subsection (c) to Rosboro, in the order
in which they appear in subsection (c), as necessary to satisfy
the equal value requirements of subsection (d).
(b) LAND TO BE OFFERED BY ROSBORO.—The land referred to
in subsection (a) as the land to be offered by Rosboro shall comprise
Section 36, Township 8 South, range 4 east, Willamette Meridian.
(c) LAND TO BE CONVEYED BY THE UNITED STATES.—The land
referred to in subsection (a) as the land to be conveyed by the
United States shall comprise sufficient land from the following
prioritized list to be of equal value under subparagraph (d):
(1) Section 5, Township 17 South, Range 4 East, Lot 7
(37.63 acres).
(2) Section 2, Township 17 South, Range 4 East, Lot 3
(29.28 acres).
(3) Section 13, Township 17 South, Range 4 East, S1⁄2
SE1⁄4 (80 acres).
(4) Section 2, Township 17 South, Range 4 East, SW1⁄4
SW1⁄4 (40 acres).
(5) Section 2, Township 17 South, Range 4 East, NW1⁄4
SE1⁄4 (40 acres).
(6) Section 8, Township 17 South, Range 4 East, SE1⁄4
SW1⁄4 (40 acres).
(7) Section 11, Township 17 South, Range 4 East, W1⁄2
NW1⁄4 (80 acres).
(d) EQUAL VALUE.—The land and interests in land exchanged
under this section shall be of equal market value as determined
by nationally recognized appraisal standards, including, to the
extent appropriate, the Uniform Standards for Federal Land
Acquisition, the Uniform Standards of Professional Appraisal Practice, or shall be equalized by way of payment of cash pursuant
to the provisions of section 206(d) of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1716(d)), and other applicable
law. The appraisal shall consider access costs for the parcels
involved.
(e) TIMETABLE.—
(1) The exchange directed by this section shall be consummated not later than 120 days after the date Rosboro
offers and conveys the property described in subsection (b)
to the United States.
(2) The authority provided by this section shall lapse if
Rosboro fails to offer the land described in subsection (b) within
two years after the date of enactment of this title.
(f) Rosboro shall have the right to challenge in United States
District Court for the District of Oregon a determination of marketability under subsection (a) and a determination of value for the
lands described in subsections (b) and (c) by the Secretary of Agriculture. The Court shall have the authority to order the Secretary
to complete the transaction contemplated in this Section.
(g) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated such sums as are necessary to carry out this
section.

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PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 109. DESIGNATION OF ELKHORN CREEK AS A WILD AND SCENIC
RIVER.

Section 3(a) of the Wild and Scenic Rivers Act (16 U.S.C.
1274(a)) is amended by adding at the end the following:
‘‘( ) (A) ELKHORN CREEK.—The 6.4 mile segment traversing
federally administered lands from that point along the Willamette
National Forest boundary on the common section line between
Sections 12 and 13, Township 9 South, Range 4 East, Willamette
Meridian, to that point where the segment leaves federal ownership
along the Bureau of Land Management boundary in Section 1,
Township 9 South, Range 3 East, Willamette Meridian, in the
following classes:
‘‘(i) a 5.8-mile wild river area, extending from that point
along the Willamette National Forest boundary on the common
section line between Sections 12 and 13, Township 9 South,
Range 4 East, Willamette Meridian, to its confluence with
Buck Creek in Section 1, Township 9 South, Range 3 East,
Willamette Meridian, to be administered as agreed on by the
Secretaries of Agriculture and the Interior, or as directed by
the President; and
‘‘(ii) a 0.6-mile scenic river area, extending from the confluence with Buck Creek in Section 1, Township 9 South, Range
3 East, Willamette Meridian, to that point where the segment
leaves federal ownership along the Bureau of Land Management boundary in Section 1, Township 9 South, Range 3 East,
Willamette Meridian, to be administered by the Secretary of
Interior, or as directed by the President.
‘‘(B) Notwithstanding section 3(b) of this Act, the lateral boundaries of both the wild river area and the scenic
river area along Elkhorn Creek shall include an average
of not more than 640 acres per mile measured from the
ordinary high water mark on both sides of the river.’’
SEC. 110. ECONOMIC DEVELOPMENT.

(a) ECONOMIC DEVELOPMENT PLAN.—As a condition for receiving funding under subsection (b) of this section, the State of Oregon,
in consultation with Marion County and the Secretary of Agriculture, shall develop a plan for economic development projects
for which grants under this section may be used in a manner
consistent with this title and to benefit local communities in the
vicinity of the Opal Creek area. Such plan shall be based on an
economic opportunity study and other appropriate information.
(b) FUNDS PROVIDED TO THE STATES FOR GRANTS.—Upon
completion of the Opal Creek Management Plan, and receipt of
the plan referred to in subsection (a) of this section, the Secretary
shall provide, subject to appropriations, $15,000,000, to the State
of Oregon. Such funds shall be used to make grants or loans
for economic development projects that further the purposes of
this title and benefit the local communities in the vicinity of Opal
Creek.
(c) REPORT.—The State of Oregon shall—
(1) prepare and provide the Secretary and Congress with
an annual report on the use of the funds made available under
this section;
(2) make available to the Secretary and to Congress, upon
request, all accounts, financial records, and other information

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–532

related to grants and loans made available pursuant to this
section; and
(3) as loans are repaid, make additional grants and loans
with the money made available for obligation by such repayments.

TITLE II—UPPER KLAMATH BASIN
SEC.

201.

UPPER KLAMATH
PROJECTS.

BASIN

ECOLOGICAL

RESTORATION

(a) DEFINITIONS.—In this section:
(1) ECOSYSTEM RESTORATION OFFICE.—The term ‘‘Ecosystem Restoration Office’’ means the Klamath Basin Ecosystem Restoration Office operated cooperatively by the United
States Fish and Wildlife Service, Bureau of Reclamation,
Bureau of Land Management, and Forest Service.
(2) WORKING GROUP.—The term ‘‘Working Group’’ means
the Upper Klamath Basin Working Group, established before
the date of enactment of this title, consisting of members nominated by their represented groups, including:
(A) 3 tribal members;
(B) 1 representative of the city of Klamath Falls,
Oregon;
(C) 1 representative of Klamath County, Oregon;
(D) 1 representative of institutions of higher education
in the Upper Klamath Basin;
(E) 4 representatives of the environmental community,
including at least one such representative from the State
of California with interests in the Klamath Basin National
Wildlife Refuge Complex;
(F) 4 representatives of local businesses and industries,
including at least one representative of the wood products
industry and one representative of the ocean commercial
fishing industry and/or the recreational fishing industry
based in either Oregon or California;
(G) 4 representatives of the ranching and farming
community, including representatives of Federal lease-land
farmers and ranchers and of private land farmers and
ranchers in the Upper Klamath Basin;
(H) 2 representatives from State of Oregon agencies
with authority and responsibility in the Klamath River
Basin, including one from the Oregon Department of Fish
and Wildlife and one from the Oregon Water Resources
Department;
(I) 4 representatives from the local community;
(J) 1 representative each from the following Federal
resource management agencies in the Upper Klamath
Basin: Fish and Wildlife Service, Bureau of Reclamation,
Bureau of Land Management, Bureau of Indian Affairs,
Forest Service, Natural Resources Conservation Service,
National Marine Fisheries Service and Ecosystem Restoration Office; and
(K) 1 representative of the Klamath County Soil and
Water Conservation District.
(3) SECRETARY.—The term ‘‘Secretary’’ means the Secretary
of the Interior.

110 STAT. 3009–533

PUBLIC LAW 104–208—SEPT. 30, 1996

(4) TASK FORCE.—The term ‘‘Task Force’’ means the Klamath River Basin Fisheries Task Force as established by the
Klamath River Basin Fishery Resource Restoration Act (Public
Law 99–552, 16 U.S.C. 460ss–3, et. seq.).
(5) COMPACT COMMISSION.—The term ‘‘Compact Commission’’ means the Klamath River Basin Compact Commission
created pursuant to the Klamath River Compact Act of 1954.
(6) CONSENSUS.—The term ‘‘consensus’’ means a unanimous
agreement by the Working Group members present and consisting of at least a quorum at a regularly scheduled business
meeting.
(7) QUORUM.—The term ‘‘quorum’’ means one more than
half of those qualified Working Group members appointed and
eligible to serve.
(8) TRINITY TASK FORCE.—The term ‘‘Trinity Task Force’’
means the Trinity River Restoration Task Force created by
Public Law 98–541, as amended by Public Law 104–143.
(b) IN GENERAL.—
(1) The Working Group through the Ecosystem Restoration
Office, with technical assistance from the Secretary, will propose ecological restoration projects, economic development and
stability projects, and projects designed to reduce the impacts
of drought conditions to be undertaken in the Upper Klamath
Basin based on a consensus of the Working Group membership.
(2) The Secretary shall pay, to the greatest extent feasible,
up to 50 percent of the cost of performing any project approved
by the Secretary or his designee, up to a total amount of
$1,000,000 during each of fiscal years 1997 through 2001.
(3) Funds made available under this title through the
Department of the Interior or the Department of Agriculture
shall be distributed through the Ecosystem Restoration Office.
(4) The Ecosystem Restoration Office may utilize not more
than 15 percent of all Federal funds administered under this
section for administrative costs relating to the implementation
of this title.
(5) All funding recommendations developed by the Working
Group shall be based on a consensus of Working Group members.
(c) COORDINATION.—
(1) The Secretary shall formulate a cooperative agreement
among the Working Group, the Task Force, the Trinity Task
Force and the Compact Commission for the purposes of ensuring that projects proposed and funded through the Working
Group are consistent with other basin-wide fish and wildlife
restoration and conservation plans, including but not limited
to plans developed by the Task Force and the Compact Commission.
(2) To the greatest extent practicable, the Working Group
shall provide notice to, and accept input from, two members
each of the Task Force, the Trinity Task Force, and the Compact
Commission, so appointed by those entities, for the express
purpose of facilitating better communication and coordination
regarding additional basin-wide fish and wildlife and ecosystem
restoration and planning efforts. The roles and relationships
of the entities involved shall be clarified in the cooperative
agreement.

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110 STAT. 3009–534

(d) PUBLIC MEETINGS.—The Working Group shall conduct all
meetings subject to applicable open meeting and public participation
laws. The chartering requirements of 5 U.S.C. App 2 ss 1–15
are hereby deemed to have been met by this section.
(e) TERMS AND VACANCIES.—Working Group members shall
serve for 3-year terms, beginning on the date of enactment of
this title. Vacancies which occur for any reason after the date
of enactment of this title shall be filled by direct appointment
of the governor of the State of Oregon, in consultation with the
Secretary of the Interior and the Secretary of Agriculture, in accordance with nominations from the appropriate groups, interests, and
government agencies outlined in subsection (a)(2).
(f) RIGHTS, DUTIES AND AUTHORITIES UNAFFECTED.—The Working Group will supplement, rather than replace, existing efforts
to manage the natural resources of the Klamath Basin. Nothing
in this title affects any legal right, duty or authority of any person
or agency, including any member of the working group.
(g) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to carry out this title $1,000,000 for each of
fiscal years 1997 through 2002.

TITLE III—DESCHUTES BASIN
SEC. 301. DESCHUTES BASIN ECOSYSTEM RESTORATION PROJECTS.

(a) DEFINITIONS.—In this section:
(1) WORKING GROUP.—The term ‘‘Working Group’’ means
the Deschutes River Basin Working Group established before
the date of enactment of this title, consisting of members nominated by their represented groups, including:
(A) 5 representatives of private interests including one
each from hydroelectric production, livestock grazing, timber, land development, and recreation/tourism;
(B) 4 representatives of private interests including two
each from irrigated agriculture and the environmental
community;
(C) 2 representatives from the Confederated Tribes
of the Warm Springs Reservation of Oregon;
(D) 2 representatives from Federal agencies with
authority and responsibility in the Deschutes River Basin,
including one from the Department of the Interior and
one from the Agriculture Department;
(E) 2 representatives from the State of Oregon agencies
with authority and responsibility in the Deschutes River
Basin, including one from the Oregon Department of Fish
and Wildlife and one from the Oregon Water Resources
Department; and
(F) 4 representatives from county or city governments
within the Deschutes River Basin county and/or city
governments.
(2) SECRETARY.—The term ‘‘Secretary’’ means the Secretary
of the Interior.
(3) FEDERAL AGENCIES.—The term ‘‘Federal agencies’’
means agencies and departments of the United States, including, but not limited to, the Bureau of Reclamation, Bureau
of Indian Affairs, Bureau of Land Management, Fish and Wildlife Service, Forest Service, Natural Resources Conservation

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Service, Farm Services Agency, the National Marine Fisheries
Service, and the Bonneville Power Administration.
(4) CONSENSUS.—The term ‘‘consensus’’ means a unanimous
agreement by the Working Group members present and constituting at least a quorum at a regularly scheduled business
meeting.
(5) QUORUM.—The term ‘‘quorum’’ means one more than
half of those qualified Working Group members appointed and
eligible to serve.
(b) IN GENERAL.—
(1) The Working Group will propose ecological restoration
projects on both Federal and non-Federal lands and waters
to be undertaken in the Deschutes River Basin based on a
consensus of the Working Group, provided that such projects,
when involving Federal land or funds, shall be proposed to
the Bureau of Reclamation in the Department of the Interior
and any other Federal agency with affected land or funds.
(2) The Working Group will accept donations, grants or
other funds and place such funds received into a trust fund,
to be expended on ecological restoration projects which, when
involving Federal land or funds, are approved by the affected
Federal agency.
(3) The Bureau of Reclamation shall pay from funds authorized under subsection (h) of this title up to 50 percent of
the cost of performing any project proposed by the Working
Group and approved by the Secretary, up to a total amount
of $1,000,000 during each of the fiscal years 1997 through
2001.
(4) Non-Federal contributions to project costs for purposes
of computing the Federal matching share under paragraph
(3) of this subsection may include in-kind contributions.
(5) Funds authorized in subsection (h) of this title shall
be maintained in and distributed by the Bureau of Reclamation
in the Department of the Interior. The Bureau of Reclamation
shall not expend more than 5 percent of amounts appropriated
pursuant to subsection (h) for Federal administration of such
appropriations pursuant to this title.
(6) The Bureau of Reclamation is authorized to provide
by grant to the Working Group not more than 5 percent of
funds appropriated pursuant to subsection (h) of this title for
not more than 50 percent of administrative costs relating to
the implementation of this title.
(7) The Federal agencies with authority and responsibility
in the Deschutes River Basin shall provide technical assistance
to the Working Group and shall designate representatives to
serve as members of the Working Group.
(8) All funding recommendations developed by the Working
Group shall be based on a consensus of the Working Group
members.
(c) PUBLIC NOTICE AND PARTICIPATION.—The Working Group
shall conduct all meetings subject to applicable open meeting and
public participation laws. The chartering requirements of 5 U.S.C.
App 2 ss 1–15 are hereby deemed to have been met by this section.
(d) PRIORITIES.—The Working Group shall give priority to voluntary market-based economic incentives for ecosystem restoration
including, but not limited to, water leases and purchases; land
leases and purchases; tradable discharge permits; and acquisition

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110 STAT. 3009–536

of timber, grazing, and land development rights to implement plans,
programs, measures, and projects.
(e) TERMS AND VACANCIES.—Members of the Working Group
representing governmental agencies or entities shall be named by
the represented government agency. Members of the Working Group
representing private interests shall be named in accordance with
the articles of incorporation and bylaws of the Working Group.
Representatives from Federal agencies will serve for terms of 3
years. Vacancies which occur for any reason after the date of
enactment of this title shall be filled in accordance with this title.
(f) ADDITIONAL PROJECTS.—Where existing authority and appropriations permit, Federal agencies may contribute to the
implementation of projects recommended by the Working Group
and approved by the Secretary.
(g) RIGHTS, DUTIES AND AUTHORITIES UNAFFECTED.—The Working Group will supplement, rather than replace, existing efforts
to manage the natural resources of the Deschutes Basin. Nothing
in this title affects any legal right, duty or authority of any person
or agency, including any member of the working group.
(h) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to carry out this title $1,000,000 for each of
fiscal years 1997 through 2001.

TITLE IV—MOUNT HOOD CORRIDOR
SEC. 401. LAND EXCHANGE.

(a) AUTHORIZATION.—Notwithstanding any other law, if Longview Fibre Company (referred to in this section as ‘‘Longview’’)
offers and conveys title that is acceptable to the United States
to some or all of the land described in subsection (b), the Secretary
of the Interior (referred to in this section as the ‘‘Secretary’’) shall
convey to Longview title to some or all of the land described in
subsection (c), as necessary to satisfy the requirements of subsection
(d).
(b) LAND TO BE OFFERED BY LONGVIEW.—The land referred
to in subsection (a) as the land to be offered by Longview are
those lands depicted on the map entitled ‘‘Mt. Hood Corridor Land
Exchange Map’’, dated July 18, 1996.
(c) LAND TO BE CONVEYED BY THE SECRETARY.—The land
referred to in subsection (a) as the land to be conveyed by the
Secretary are those lands depicted on the map entitled ‘‘Mt. Hood
Corridor Land Exchange Map’’, dated July 18, 1996.
(d) EQUAL VALUE.—The land and interests in land exchanged
under this section shall be of equal market value as determined
by nationally recognized appraisal standards, including, to the
extent appropriate, the Uniform Standards for Federal Land
Acquisition, the Uniform Standards of Professional Appraisal Practice, or shall be equalized by way of payment of cash pursuant
to the provisions of section 206(d) of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1716(d)), and other applicable
law.
(e) REDESIGNATION OF LAND TO MAINTAIN REVENUE FLOW.—
So as to maintain the current flow of revenue from land subject
to the Act entitled ‘‘An Act relating to the revested Oregon and
California Railroad and reconveyed Coos Bay Wagon Road grant
land situated in the State of Oregon’’, approved August 28, 1937

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(43 U.S.C. 1181a et seq.), the Secretary may redesignate public
domain land located in and west of Range 9 East, Willamette
Meridian, Oregon, as land subject to that Act.
(f) TIMETABLE.—The exchange directed by this section shall
be consummated not later than 1 year after the date of enactment
of this title.
(g) WITHDRAWAL OF LANDS.—All lands managed by the Department of the Interior, Bureau of Land Management, located in
Townships 2 and 3 South, Ranges 6 and 7 East, Willamette Meridian, which can be seen from the right-of-way of U.S. Highway
26 (in this section, such lands are referred to as the ‘‘Mt. Hood
Corridor Lands’’), shall be managed primarily for the protection
or enhancement of scenic qualities. Management prescriptions for
other resource values associated with these lands shall be planned
and conducted for purposes other than timber harvest, so as not
to impair the scenic qualities of the area.
(h) TIMBER CUTTING.—Timber cutting may be conducted on
Mt. Hood Corridor Lands following a resource-damaging catastrophic event. Such cutting may only be conducted to achieve
the following resource management objectives, in compliance with
the current land use plans—
(1) to maintain safe conditions for the visiting public;
(2) to control the continued spread of forest fire;
(3) for activities related to administration of the Mt. Hood
Corridor Lands; or
(4) for removal of hazard trees along trails and roadways.
(i) ROAD CLOSURE.—The forest road gate located on Forest
Service Road 2503, located in T. 2 S., R. 6 E., sec. 14, shall
remain closed and locked to protect resources and prevent illegal
dumping and vandalism. Access to this road shall be limited to—
(1) Federal and State officers and employees acting in
an official capacity;
(2) employees and contractors conducting authorized activities associated with the telecommunication sites located in T.
2 S., R. 6 E., sec. 14; and
(3) the general public for recreational purposes, except
that all motorized vehicles will be prohibited.
(j) NEPA EXEMPTION.—The National Environmental Policy Act
of 1969 (P.L. 91–190) shall not apply to this section for one year
after the date of enactment of this title.
(k) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated such sums as are necessary to carry out this
section.

TITLE V—COQUILLE TRIBAL FOREST
SEC. 501. CREATION OF THE COQUILLE FOREST.
25 USC 715c.

(a) The Coquille Restoration Act (P.L. 101–42) is amended
by inserting at the end of section 5 the following:
‘‘(d) CREATION OF THE COQUILLE FOREST.—
‘‘(1) DEFINITIONS.—In this subsection:
‘‘(A) the term ‘Coquille Forest’ means certain lands
in Coos County, Oregon, comprising approximately 5,400
acres, as generally depicted on the map entitled ‘Coquille
Forest Proposal’, dated July 8, 1996.

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110 STAT. 3009–538

‘‘(B) the term ‘Secretary’ means the Secretary of the
Interior.
‘‘(C) the term ‘the Tribe’ means the Coquille Tribe
of Coos County, Oregon.
‘‘(2) MAP.—The map described in subparagraph (d)(1)(A),
and such additional legal descriptions which are applicable,
shall be placed on file at the local District Office of the Bureau
of Land Management, the Agency Office of the Bureau of Indian
Affairs, and with the Senate Committee on Energy and Natural
Resources and the House Committee on Resources.
‘‘(3) INTERIM PERIOD.—From the date of enactment of this
subsection until two years after the date of enactment of this
subsection, the Bureau of Land Management shall:
‘‘(A) retain Federal jurisdiction for the management
of lands designated under this subsection as the Coquille
Forest and continue to distribute revenues from such lands
in a manner consistent with existing law; and,
‘‘(B) prior to advertising, offering or awarding any timber sale contract on lands designated under this subsection
as the Coquille Forest, obtain the approval of the Assistant
Secretary for Indian Affairs, acting on behalf of and in
consultation with the Tribe.
(4) TRANSITION PLANNING AND DESIGNATION.—
‘‘(A) During the two year interim period provided for
in paragraph (3), the Assistant Secretary for Indian Affairs,
acting on behalf of and in consultation with the Tribe,
is authorized to initiate development of a forest management plan for the Coquille Forest. The Secretary, acting
through the Director of the Bureau of Land Management,
shall cooperate and assist in the development of such plan
and in the transition of forestry management operations
for the Coquille Forest to the Assistant Secretary for Indian
Affairs.
‘‘(B) Two years after the date of enactment of this
subsection, the Secretary shall take the lands identified
under subparagraph (d)(1)(A) into trust, and shall hold
such lands in trust, in perpetuity, for the Coquille Tribe.
Such lands shall be thereafter designated as the Coquille
Forest.
‘‘(C) So as to maintain the current flow of revenue
from land subject to the Act entitled ‘An Act relating to
the revested Oregon and California Railroad and reconveyed Coos Bay Wagon Road grant land situated in the
State of Oregon’ (the O&C Act), approved August 28, 1937
(43 U.S.C. 1181a et seq.), the Secretary shall redesignate,
from public domain lands within the tribe’s service area,
as defined in this Act, certain lands to be subject to the
O&C Act. Lands redesignated under this subparagraph
shall not exceed lands sufficient to constitute equivalent
timber value as compared to lands constituting the Coquille
Forest.
‘‘(5) MANAGEMENT.—The Secretary of Interior, acting
through the Assistant Secretary for Indian Affairs, shall manage the Coquille Forest under applicable State and Federal
forestry and environmental protection laws, and subject to critical habitat designations under the Endangered Species Act,
and subject to the standards and guidelines of Federal forest

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plans on adjacent or nearby Federal lands, now and in the
future. The Secretary shall otherwise manage the Coquille Forest in accordance with the laws pertaining to the management
of Indian Trust lands and shall distribute revenues in accord
with Public Law 101–630, 25 U.S.C. 3107.
‘‘(A) Unprocessed logs harvested from the Coquille Forest shall be subject to the same Federal statutory restrictions on export to foreign Nations that apply to unprocessed
logs harvested from Federal lands.
‘‘(B) Notwithstanding any other provision of law, all
sales of timber from land subject to this subsection shall
be advertised, offered and awarded according to competitive
bidding practices, with sales being awarded to the highest
responsible bidder.
‘‘(6) INDIAN SELF DETERMINATION ACT AGREEMENT.—No
sooner than two years after the date of enactment of this
subsection, the Secretary may, upon a satisfactory showing
of management competence and pursuant to the Indian SelfDetermination Act (25 U.S.C. 450 et seq.), enter into a binding
Indian self-determination agreement (agreement) with the
Coquille Indian Tribe. Such agreement may provide for the
tribe to carry out all or a portion of the forest management
for the Coquille Forest.
‘‘(A) Prior to entering such an agreement, and as a
condition of maintaining such an agreement, the Secretary
must find that the Coquille Tribe has entered into a binding
memorandum of agreement (MOA) with the State of
Oregon, as required under paragraph 7.
‘‘(B) The authority of the Secretary to rescind the
Indian self-determination agreement shall not be encumbered.
‘‘(i) The Secretary shall rescind the agreement
upon a demonstration that the tribe and the State
of Oregon are no longer engaged in a memorandum
of agreement as required under paragraph 7.
‘‘(ii) The Secretary may rescind the agreement on
a showing that the Tribe has managed the Coquille
Forest in a manner inconsistent with this subsection,
or the Tribe is no longer managing, or capable of
managing, the Coquille Forest in a manner consistent
with this subsection.
‘‘(7) MEMORANDUM OF AGREEMENT.—The Coquille Tribe
shall enter into a memorandum of agreement (MOA) with the
State of Oregon relating to the establishment and management
of the Coquille Forest. The MOA shall include, but not be
limited to, the terms and conditions for managing the Coquille
Forest in a manner consistent with paragraph (5) of this subsection, preserving public access, advancing jointly-held
resource management goals, achieving tribal restoration objectives and establishing a coordinated management framework.
Further, provisions set forth in the MOA shall be consistent
with federal trust responsibility requirements applicable to
Indian trust lands and paragraph (5) of this subsection.
‘‘(8) PUBLIC ACCESS.—The Coquille Forest shall remain
open to public access for purposes of hunting, fishing, recreation
and transportation, except when closure is required by state
or federal law, or when the Coquille Indian Tribe and the

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110 STAT. 3009–540

State of Oregon agree in writing that restrictions on access
are necessary or appropriate to prevent harm to natural
resources, cultural resources or environmental quality; Provided, That the State of Oregon’s agreement shall not be
required when immediate action is necessary to protect
archaeological resources.
‘‘(9) JURISDICTION.—
‘‘(A) The United States District Court for the District
of Oregon shall have jurisdiction over actions against the
Secretary arising out of claims that this subsection has
been violated. Consistent with existing precedents on
standing to sue, any affected citizen may bring suit against
the Secretary for violations of this subsection, except that
suit may not be brought against the Secretary for claims
that the MOA has been violated. The Court has the authority to hold unlawful and set aside actions pursuant to
this subsection that are arbitrary and capricious, an abuse
of discretion, or otherwise an abuse of law.
‘‘(B) The United States District Court for the District
of Oregon shall have jurisdiction over actions between the
State of Oregon and the Tribe arising out of claims of
breach of the MOA.
‘‘(C) Unless otherwise provided for by law, remedies
available under this subsection shall be limited to equitable
relief and shall not include damages.
‘‘(10) STATE REGULATORY AND CIVIL JURISDICTION.—In addition to the jurisdiction described in paragraph 7 of this subsection, the State of Oregon may exercise exclusive regulatory
civil jurisdiction, including but not limited to adoption and
enforcement of administrative rules and orders, over the following subjects:
‘‘(A) management, allocation and administration of fish
and wildlife resources, including but not limited to
establishment and enforcement of hunting and fishing seasons, bag limits, limits on equipment and methods, issuance
of permits and licenses, and approval or disapproval of
hatcheries, game farms, and other breeding facilities; Provided, That nothing herein shall be construed to permit
the State of Oregon to manage fish or wildlife habitat
on Coquille Forest lands;
‘‘(B) allocation and administration of water rights,
appropriation of water and use of water;
‘‘(C) regulation of boating activities, including equipment and registration requirements, and protection of the
public’s right to use the waterways for purposes of boating
or other navigation;
‘‘(D) fills and removals from waters of the State, as
defined in Oregon law;
‘‘(E) protection and management of the State’s proprietary interests in the beds and banks of navigable waterways;
‘‘(F) regulation of mining, mine reclamation activities,
and exploration and drilling for oil and gas deposits;
‘‘(G) regulation of water quality, air quality (including
smoke management), solid and hazardous waste, and
remediation of releases of hazardous substances;

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PUBLIC LAW 104–208—SEPT. 30, 1996
‘‘(H) regulation of the use of herbicides and pesticides;
and

‘‘(I) enforcement of public health and safety standards,
including standards for the protection of workers, well
construction and codes governing the construction of
bridges, buildings, and other structures.
‘‘(11) SAVINGS CLAUSE, STATE AUTHORITY.—
‘‘(A) Nothing in this subsection shall be construed to
grant tribal authority over private or State-owned lands.
‘‘(B) To the extend that the State of Oregon is regulating the foregoing areas pursuant to a delegated Federal
authority or a Federal program, nothing in this subsection
shall be construed to enlarge or diminish the State’s authority under such law.
‘‘(C) Where both the State of Oregon and the United
States are regulating, nothing herein shall be construed
to alter their respective authorities.
‘‘(D) To the extent that Federal law authorizes the
Coquille Indian Tribe to assume regulatory authority over
an area, nothing herein shall be construed to enlarge or
diminish the tribe’s authority to do so under such law.
‘‘(E) Unless and except to the extent that the tribe
has assumed jurisdiction over the Coquille Forest pursuant
to Federal law, or otherwise with the consent of the State,
the State of Oregon shall have jurisdiction and authority
to enforce its laws addressing the subjects listed in subparagraph 10 of this subsection on the Coquille Forest against
the Coquille Indian Tribe, its members and all other persons and entities, in the same manner and with the same
remedies and protections and appeal rights as otherwise
provided by general Oregon law. Where the State of Oregon
and Coquille Indian Tribe agree regarding the exercise
of tribal civil regulatory jurisdiction over activities on the
Coquille Forest lands, the tribe may exercise such jurisdiction as its agreed upon.
‘‘(12) In the event of a conflict between Federal and State
law under this subsection, Federal law shall control.’’

TITLE VI—BULL RUN WATERSHED
PROTECTION
16 USC 482b
note.
16 USC 482b
note.
16 USC 482b
note.
16 USC 482b
note.

SEC. 601. The first sentence of section 2(a) of Public Law
95–200 is amended after ‘‘referred to in this subsection (a)’’ by
striking ‘‘2(b)’’ and inserting in lieu thereof ‘‘2(c)’’.
SEC. 602. The first sentence of section 2(b) of Public Law
95–200 is amended after ‘‘the policy set forth in subsection (a)’’
by inserting ‘‘and (b)’’.
SEC. 603. Section 2(b) of Public Law 95–200 is redesigned
as ‘‘2(c)’’.
SEC. 604 (a) Public Law 95–200 is amended by adding a new
subsection 2(b) immediately after subsection 2(a), as follows:
‘‘(b) TIMBER CUTTING.—
(1) IN GENERAL.—Subject to paragraph (2), the Secretary
of Agriculture shall prohibit the cutting of trees in that part
of the unit consisting of the hydrographic boundary of the
Bull Run River Drainage, including certain lands within the

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110 STAT. 3009–542

unit and located below the headworks of the city of Portland,
Oregon’s water storage and delivery project, and as depicted
in a map dated July 22, 1996 and entitled ‘‘Bull Run River
Drainage’’.
(2) PERMITTED CUTTING.—
(A) IN GENERAL.—Subject to subparagraph (B), the Secretary of Agriculture shall prohibit the cutting of trees
in the area described in paragraph (1).
(B) PERMITTED CUTTING.—Subject to subparagraph (C),
the Secretary may only allow the cutting of trees in the
area described in paragraph (1)—
(i) for the protection or enhancement of water quality in the area described in paragraph (1); or
(ii) for the protection, enhancement, or maintenance of water quantity available from the area
described in paragraph (1); or
(iii) for the construction, expansion, protection or
maintenance of municipal water supply facilities; or
(iv) for the construction, expansion, protection or
maintenance of facilities for the transmission of energy
through and over the unit or previously authorized
hydroelectric facilities or hydroelectric projects associated with municipal water supply facilities.
(C) SALVAGE SALES.—The Secretary of Agriculture may
not authorize a salvage sale in the area described in paragraph (1).’’
(b) Redesignate subsequent subsections of Public Law 95–200
accordingly.
SEC. 605. REPORT TO CONGRESS.

(a) The Secretary of Agriculture shall, in consultation with
the city of Portland and other affected parties, undertake a study
of that part of the Little Sandy Watershed that is within the
unit (hereinafter referred to as the ‘‘study area’’), as depicted on
the map described in section 604 of this title.
(b) The study referred to in (a) shall determine—
(1) the impact of management activities within the study
area on the quality of drinking water provided to the Portland
Metropolitan area;
(2) the identify and location of certain ecological features
within the study area, including late successional forest
characteristics, aquatic and terrestrial wildlife habitat, significant hydrological values, or other outstanding natural features;
and
(3) the location and extent of any significant cultural or
other values within the study area.
(c) The study referred to in subsection (a) shall include both
legislative and regulatory recommendations to Congress on the
future management of the study area. In formulating such recommendations, the Secretary shall consult with the city of Portland
and other affected parties.
(d) To the greatest extent possible, the Secretary shall use
existing data and processes to carry out this study and report.
(e) The study referred to in subsection (a) shall be submitted
to the Senate Committees on Energy and Natural Resources and

16 USC 482b
note.

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PUBLIC LAW 104–208—SEPT. 30, 1996

Agriculture and the House Committees on Resources and Agriculture not later than one year from the date of enactment of
this section.
(f) The Secretary is prohibited from advertising, offering or
awarding any timber sale within the study area for a period of
two years after the date of enactment of this section.
(g) Nothing in this section shall in any way affect any State
or Federal law governing appropriation, use of or Federal right
to water on or flowing through National Forest System lands.
Nothing in this section is intended to influence the relative strength
of competing claims to the waters of the Little Sandy River. Nothing
in this section shall be construed to expand or diminish Federal,
State, or local jurisdiction, responsibility, interests, or rights in
water resources development or control, including rights in and
current uses of water resources in the unit.
SEC. 606. Lands within the Bull Run Management Unit, as
defined in Public Law 95–200, but not contained within the Bull
Run River Drainage, as defined by this title and as depicted on
the map dated July 1996 described in Section 604 of this title,
shall continue to be managed in accordance with Public Law 95–
200.
16 USC 1132
note.

TITLE VII—OREGON ISLANDS
WILDERNESS, ADDITIONS
SEC. 701. OREGON ISLANDS WILDERNESS, ADDITIONS.

(a) In furtherance of the purposes of the Wilderness Act of
1964, certain lands within the boundaries of the Oregon Islands
National Wildlife Refuge, Oregon, comprising approximately ninetyfive acres and as generally depicted on a map entitled ‘‘Oregon
Island Wilderness Additions—Proposed’’ dated August 1996, are
hereby designated as wilderness. The map shall be on file and
available for public inspection in the offices of the Fish and Wildlife
Service, Department of the Interior.
(b) All other federally owned named, unnamed, surveyed and
unsurveyed rocks, reefs, islets and islands lying within three
goegraphic miles off the coast of Oregon and above mean high
tide, not currently designated as wilderness and also within the
Oregon Islands National Wildlife Refuge boundaries under the
administration of the United States Fish and Wildlife Service,
Department of the Interior, as designated by Executive Order 7035,
Proclamation 2416, Public Land Orders 4395, 4475 and 6287, and
Public Laws 91–504 and 95–450, are hereby designated as wilderness.
(c) All federally owned named, unnamed, surveyed and
unsurveyed rocks, reefs, islets and islands lying within three
geographic miles off the coast of Oregon and above mean high
tide, and presently under the jurisdiction of the Bureau of Land
Management, except Chiefs Island, are hereby designated as wilderness, shall become part of the Oregon Islands National Wildlife
Refuge and the Oregon Island Wilderness and shall be under the
jurisdiction of the United States Fish and Wildlife Service, Department of the Interior.
(d) As soon as practicable after this title takes effect, a map
of the wilderness area and a description of its boundaries shall
be filed with the Senate Committee on Energy and Natural

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110 STAT. 3009–544

Resources and the House Committee on Resources, and such map
shall have the same force and effect as if included in this title:
Provided, however, That correcting clerical and typographical errors
in the map and land descriptions may be made.
(e) Public Land Order 6287 of June 16, 1982, which withdrew
certain rocks, reefs, islets and islands lying within three geographical miles off the coast of Oregon and above mean high tide, including
the ninety-five acres described in subsection (a), as an addition
to the Oregon Islands National Wildlife Refuge is hereby made
permanent.

TITLE VIII—UMPQUA RIVER LAND
EXCHANGE STUDY
SEC. 801. UMPQUA RIVER LAND EXCHANGE STUDY: POLICY AND DIRECTION.

(a) IN GENERAL.—The Secretaries of the Interior and Agriculture (Secretaries) are hereby authorized and directed to consult,
coordinate, and cooperate with the Umpqua Land Exchange Project
(ULEP), affected units and agencies of State and local government,
and, as appropriate, the World Forestry Center and National Fish
and Wildlife Foundation, to assist ULEP’s ongoing efforts in studying and analyzing land exchange opportunities in the Umpqua
River Basin and to provide scientific, technical, research, mapping
and other assistance and information to such entities. Such consultation, coordination, and cooperation shall at a minimum include,
but not be limited to:
(1) working with ULEP to develop or assemble comprehensive scientific and other information (including comprehensive
and integrated mapping) concerning the Umpqua River Basin’s
resources of forest, plants, wildlife, fisheries (anadromous and
other), recreational opportunities, wetlands, riparian habitat,
and other physical or natural resources;
(2) working with ULEP to identify general or specific areas
within the basin where land exchanges could promote consolidation of forestland ownership for long-term, sustained timber
production; protection and restoration of habitat for plants,
fish, and wildlife (including any federally listed threatened
or endangered species); protection of drinking water supplies;
recovery of threatened and endangered species; protection and
restoration of wetlands, riparian lands, and other environmentally sensitive areas; consolidation of land ownership for
improved public access and a broad array of recreational uses;
and consolidation of land ownership to achieve management
efficiency and reduced costs of administration; and
(3) developing a joint report for submission to the Congress
which discusses land exchange opportunities in the basin and
outlines either a specific land exchange proposal or proposals
which may merit consideration by the Secretaries or the Congress, or ideas and recommendations for new authorizations,
direction, or changes in existing law or policy to expedite and
facilitate the consummation of beneficial land exchanges in
the basin via administrative means.
(b) MATTERS FOR SPECIFIC STUDY.—In analyzing land exchange
opportunities with ULEP, the Secretaries shall give priority to
assisting ULEP’s ongoing efforts in:

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PUBLIC LAW 104–208—SEPT. 30, 1996

(1) studying, identifying, and mapping areas where the
consolidation of land ownership via land exchanges could promote the goals of long term species and watershed protection
and utilization, including but not limited to the goals of the
Endangered Species Act of 1973 more effectively than current
land ownership patterns and whether any changes in law or
policy applicable to such lands after consummation of an
exchange would be advisable or necessary to achieve such goals;
(2) studying, identifying and mapping areas where land
exchanges might be utilized to better satisfy the goals of
sustainable timber harvest, including studying whether changes
in existing law or policy applicable to such lands after consummation of an exchange would be advisable or necessary
to achieve such goals;
(3) identifying issues and studying options and alternatives,
including possible changes in existing law or policy, to insure
that combined post-exchange revenues to units of local government from State and local property, severance, and other taxes
or levies and shared Federal land receipts will approximate
pre-exchange revenues;
(4) identifying issues and studying whether possible
changes in law, special appraisal instruction, or changes in
certain Federal appraisal procedures might be advisable or
necessary to facilitate the appraisal of potential exchange lands
which may have special characteristics or restrictions affecting
land values;
(5) identifying issues and studying options and alternatives,
including changes in existing laws or policy, for achieving land
exchanges without reducing the net supply of timber available
to small businesses;
(6) identifying, mapping, and recommending potential
changes in land use plans, land classifications, or other actions
which might be advisable or necessary to expedite, facilitate
or consummate land exchanges in certain areas;
(7) analyzing potential sources for new or enhanced Federal, State, or other funding to promote improved resource
protection, species recovery, and management in the basin;
and
(8) identifying and analyzing whether increased efficiency
and better land and resource management could occur through
either consolidation of Federal forest management under one
agency or exchange lands between the Forest Service and the
Bureau of Land Management.
SEC. 802. REPORT TO CONGRESS.

No later than February 1, 1998, ULEP and the Secretaries
shall submit a joint report to the Committee on Resources of the
United States House of Representatives and to the Committee
on Energy and Natural Resources of the United States Senate
concerning their studies, findings, recommendations, mapping and
other activities conducted pursuant to this title.
SEC. 803. AUTHORIZATION OF APPROPRIATIONS.

In furtherance of the purposes of this title, there is hereby
authorized to be appropriated the sum of $2 million, to remain
available until expended.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–546

DIVISION C—ILLEGAL IMMIGRATION
REFORM AND IMMIGRANT RESPONSIBILITY ACT OF 1996

Illegal
Immigration
Reform and
Immigrant
Responsibility
Act of 1996.

SEC. 1. SHORT TITLE OF DIVISION; AMENDMENTS TO IMMIGRATION
AND NATIONALITY ACT; APPLICATION OF DEFINITIONS
OF SUCH ACT; TABLE OF CONTENTS OF DIVISION; SEVERABILITY.

(a) SHORT TITLE.—This division may be cited as the ‘‘Illegal
Immigration Reform and Immigrant Responsibility Act of 1996’’.
(b) AMENDMENTS TO IMMIGRATION AND NATIONALITY ACT.—
Except as otherwise specifically provided—
(1) whenever in this division an amendment or repeal
is expressed as the amendment or repeal of a section or other
provision, the reference shall be considered to be made to
that section or provision in the Immigration and Nationality
Act; and
(2) amendments to a section or other provision are to
such section or other provision before any amendment made
to such section or other provision elsewhere in this division.
(c) APPLICATION OF CERTAIN DEFINITIONS.—Except as otherwise
specifically provided in this division, for purposes of titles I and
VI of this division, the terms ‘‘alien’’, ‘‘Attorney General’’, ‘‘border
crossing identification card’’, ‘‘entry’’, ‘‘immigrant’’, ‘‘immigrant
visa’’, ‘‘lawfully admitted for permanent residence’’, ‘‘national’’,
‘‘naturalization’’, ‘‘refugee’’, ‘‘State’’, and ‘‘United States’’ shall have
the meaning given such terms in section 101(a) of the Immigration
and Nationality Act.
(d) TABLE OF CONTENTS OF DIVISION.—The table of contents
of this division is as follows:
Sec. 1. Short title of division; amendments to Immigration and Nationality
Act; application of definitions of such Act; table of contents
of division; severability.

TITLE I—IMPROVEMENTS TO BORDER CONTROL, FACILITATION OF LEGAL ENTRY, AND INTERIOR ENFORCEMENT
Subtitle A—Improved Enforcement at the Border
Sec. 101. Border patrol agents and support personnel.
Sec. 102. Improvement of barriers at border.
Sec. 103. Improved border equipment and technology.
Sec. 104. Improvement in border crossing identification card.
Sec. 105. Civil penalties for illegal entry.
Sec. 106. Hiring and training standards.
Sec. 107. Report on border strategy.
Sec. 108. Criminal penalties for high speed flights from immigration checkpoints.
Sec. 109. Joint study of automated data collection.
Sec. 110. Automated entry-exit control system.
Sec. 111. Submission of final plan on realignment of border patrol positions

8 USC 1101 note.
8 USC 1101 note.

8 USC 1101 note.

110 STAT. 3009–547

PUBLIC LAW 104–208—SEPT. 30, 1996
from interior stations.

Sec. 112. Nationwide fingerprinting of apprehended aliens.

Subtitle B—Facilitation of Legal Entry
Sec. 121. Land border inspectors.
Sec. 122. Land border inspection and automated permit pilot projects.
Sec. 123. Preinspection at foreign airports.
Sec. 124. Training of airline personnel in detection of fraudulent documents.
Sec. 125. Preclearance authority.

Subtitle C—Interior Enforcement
Sec. 131. Authorization of appropriations for increase in number of certain
investigators.
Sec. 132. Authorization of appropriations for increase in number of investigators of visa overstayers.
Sec. 133. Acceptance of State services to carry out immigration enforcement.
Sec. 134. Minimum State INS presence.

TITLE II—ENHANCED ENFORCEMENT AND PENALTIES
AGAINST ALIEN SMUGGLING; DOCUMENT FRAUD
Subtitle A—Enhanced Enforcement and Penalties Against Alien
Smuggling
Sec. 201. Wiretap authority for investigations of alien smuggling or document fraud.
Sec. 202. Racketeering offenses relating to alien smuggling.
Sec. 203. Increased criminal penalties for alien smuggling.
Sec. 204. Increased number of assistant United States Attorneys.
Sec. 205. Undercover investigation authority.

Subtitle B—Deterrence of Document Fraud
Sec. 211. Increased criminal penalties for fraudulent use of governmentissued documents.
Sec. 212. New document fraud offenses; new civil penalties for document
fraud.
Sec. 213. New criminal penalty for failure to disclose role as preparer
of false application for immigration benefits.
Sec. 214. Criminal penalty for knowingly presenting document which fails
to contain reasonable basis in law or fact.
Sec. 215. Criminal penalty for false claim to citizenship.
Sec. 216. Criminal penalty for voting by aliens in Federal election.
Sec. 217. Criminal forfeiture for passport and visa related offenses.
Sec. 218. Penalties for involuntary servitude.
Sec. 219. Admissibility of videotaped witness testimony.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–548

Sec. 220. Subpoena authority in document fraud enforcement.

TITLE III—INSPECTION, APPREHENSION, DETENTION, ADJUDICATION, AND REMOVAL OF INADMISSIBLE AND DEPORTABLE ALIENS
Subtitle A—Revision of Procedures for Removal of Aliens
Sec. 301. Treating persons present in the United States without authorization as not admitted.
Sec. 302. Inspection of aliens; expedited removal of inadmissible arriving
aliens; referral for hearing (revised section 235).
Sec. 303. Apprehension and detention of aliens not lawfully in the United
States (revised section 236).
Sec. 304. Removal proceedings; cancellation of removal and adjustment
of status; voluntary departure (revised and new sections 239
to 240C).
Sec. 305. Detention and removal of aliens ordered removed (new section
241).
Sec. 306. Appeals from orders of removal (new section 242).
Sec. 307. Penalties relating to removal (revised section 243).
Sec. 308. Redesignation and reorganization of other provisions; additional
conforming amendments.
Sec. 309. Effective dates; transition.

Subtitle B—Criminal Alien Provisions
Sec. 321. Amended definition of aggravated felony.
Sec. 322. Definition of conviction and term of imprisonment.
Sec. 323. Authorizing registration of aliens on criminal probation or criminal parole.
Sec. 324. Penalty for reentry of deported aliens.
Sec. 325. Change in filing requirement.
Sec. 326. Criminal alien identification system.
Sec. 327. Appropriations for criminal alien tracking center.
Sec. 328. Provisions relating to State criminal alien assistance program.
Sec. 329. Demonstration project for identification of illegal aliens in incarceration facility of Anaheim, California.
Sec. 330. Prisoner transfer treaties.
Sec. 331. Prisoner transfer treaties study.
Sec. 332. Annual report on criminal aliens.
Sec. 333. Penalties for conspiring with or assisting an alien to commit
an offense under the Controlled Substances Import and Export
Act.
Sec. 334. Enhanced penalties for failure to depart, illegal reentry, and passport and visa fraud.

Subtitle C—Revision of Grounds for Exclusion and Deportation
Sec. 341. Proof of vaccination requirement for immigrants.

110 STAT. 3009–549

PUBLIC LAW 104–208—SEPT. 30, 1996

Sec. 342. Incitement of terrorist activity and provision of false documentation to terrorists as a basis for exclusion from the United States.
Sec. 343. Certification requirements for foreign health-care workers.
Sec. 344. Removal of aliens falsely claiming United States citizenship.
Sec. 345. Waiver of exclusion and deportation ground for certain section
274C violators.
Sec. 346. Inadmissibility of certain student visa abusers.
Sec. 347. Removal of aliens who have unlawfully voted.
Sec. 348. Waivers for immigrants convicted of crimes.
Sec. 349. Waiver of misrepresentation ground of inadmissibility for certain
alien.
Sec. 350. Offenses of domestic violence and stalking as ground for deportation.
Sec. 351. Clarification of date as of which relationship required for waiver
from exclusion or deportation for smuggling.
Sec. 352. Exclusion of former citizens who renounced citizenship to avoid
United States taxation.
Sec. 353. References to changes elsewhere in division.

Subtitle D—Changes in Removal of Alien Terrorist Provisions
Sec. 354. Treatment of classified information.
Sec. 355. Exclusion of representatives of terrorist organizations.
Sec. 356. Standard for judicial review of terrorist organization designations.
Sec. 357. Removal of ancillary relief for voluntary departure.
Sec. 358. Effective date.

Subtitle E—Transportation of Aliens
Sec. 361. Definition of stowaway.
Sec. 362. Transportation contracts.

Subtitle F—Additional Provisions
Sec. 371. Immigration judges and compensation.
Sec. 372. Delegation of immigration enforcement authority.
Sec. 373. Powers and duties of the Attorney General and the Commissioner.
Sec. 374. Judicial deportation.
Sec. 375. Limitation on adjustment of status.
Sec. 376. Treatment of certain fees.
Sec. 377. Limitation on legalization litigation.
Sec. 378. Rescission of lawful permanent resident status.
Sec. 379. Administrative review of orders.
Sec. 380. Civil penalties for failure to depart.
Sec. 381. Clarification of district court jurisdiction.
Sec. 382. Application of additional civil penalties to enforcement.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–550

Sec. 383. Exclusion of certain aliens from family unity program.
Sec. 384. Penalties for disclosure of information.
Sec. 385. Authorization of additional funds for removal of aliens.
Sec. 386. Increase in INS detention facilities; report on detention space.
Sec. 387. Pilot program on use of closed military bases for the detention
of inadmissible or deportable aliens.
Sec. 388. Report on interior repatriation program.

TITLE IV—ENFORCEMENT OF RESTRICTIONS AGAINST
EMPLOYMENT
Subtitle A—Pilot Programs for Employment Eligibility
Confirmation
Sec. 401. Establishment of programs.
Sec. 402. Voluntary election to participate in a pilot program.
Sec. 403. Procedures for participants in pilot programs.
Sec. 404. Employment eligibility confirmation system.
Sec. 405. Reports.

Subtitle B—Other Provisions Relating to Employer Sanctions
Sec. 411. Limiting liability for certain technical violations of paperwork
requirements.
Sec. 412. Paperwork and other changes in the employer sanctions program.
Sec. 413. Report on additional authority or resources needed for enforcement of employer sanctions provisions.
Sec. 414. Reports on earnings of aliens not authorized to work.
Sec. 415. Authorizing maintenance of certain information on aliens.
Sec. 416. Subpoena authority.

Subtitle C—Unfair Immigration-Related Employment Practices
Sec. 421. Treatment of certain documentary practices as unfair immigration-related employment practices.

TITLE V—RESTRICTIONS ON BENEFITS FOR ALIENS
Subtitle A—Eligibility of Aliens for Public Assistance and Benefits
Sec. 501. Exception to ineligibility for public benefits for certain battered
aliens.
Sec. 502. Pilot programs on limiting issuance of driver’s licenses to illegal
aliens.
Sec. 503. Ineligibility of aliens not lawfully present for Social Security
benefits.
Sec. 504. Procedures for requiring proof of citizenship for Federal public
benefits.
Sec. 505. Limitation on eligibility for preferential treatment of aliens not
lawfully present on basis of residence for higher education benefits.

110 STAT. 3009–551

PUBLIC LAW 104–208—SEPT. 30, 1996

Sec. 506. Study and report on alien student eligibility for postsecondary
Federal student financial assistance.
Sec. 507. Verification of immigration status for purposes of Social Security
and higher educational assistance.
Sec. 508. No verification requirement for nonprofit charitable organizations.
Sec. 509. GAO study of provision of means-tested public benefits to aliens
who are not qualified aliens on behalf of eligible individuals.
Sec. 510. Transition for aliens currently receiving benefits under the Food
Stamp program.

Subtitle B—Public Charge Exclusion
Sec. 531. Ground for exclusion.

Subtitle C—Affidavits of Support
Sec. 551. Requirements for sponsor’s affidavit of support.
Sec. 552. Indigence and battered spouse and child exceptions to Federal
attribution of income rule.
Sec. 553. Authority of States and political subdivisions of States to limit
assistance to aliens and to distinguish among classes of aliens
in providing general cash public assistance.

Subtitle D—Miscellaneous Provisions
Sec. 561. Increased maximum criminal penalties for forging or counterfeiting seal of a Federal department or agency to facilitate benefit
fraud by an unlawful alien.
Sec. 562. Treatment of expenses subject to emergency medical services
exception.
Sec. 563. Reimbursement of States and localities for emergency ambulance
services.
Sec. 564. Pilot programs to require bonding.
Sec. 565. Reports.

Subtitle E—Housing Assistance
Sec. 571. Short title.
Sec. 572. Prorating of financial assistance.
Sec. 573. Actions in cases of termination of financial assistance.
Sec. 574. Verification of immigration status and eligibility for financial
assistance.
Sec. 575. Prohibition of sanctions against entities making financial assistance eligibility determinations.
Sec. 576. Eligibility for public and assisted housing.
Sec. 577. Regulations.

Subtitle F—General Provisions
Sec. 591. Effective dates.
Sec. 592. Not applicable to foreign assistance.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–552

Sec. 593. Notification.
Sec. 594. Definitions.

TITLE VI—MISCELLANEOUS PROVISIONS
Subtitle A—Refugees, Parole, and Asylum
Sec. 601. Persecution for resistance to coercive population control methods.
Sec. 602. Limitation on use of parole.
Sec. 603. Treatment of long-term parolees in applying worldwide numerical
limitations.
Sec. 604. Asylum reform.
Sec. 605. Increase in asylum officers.
Sec. 606. Conditional repeal of Cuban Adjustment Act.

Subtitle B—Miscellaneous Amendments to the Immigration and
Nationality Act
Sec. 621. Alien witness cooperation.
Sec. 622. Waiver of foreign country residence requirement with respect
to international medical graduates.
Sec. 623. Use of legalization and special agricultural worker information.
Sec. 624. Continued validity of labor certifications and classification petitions for professional athletes.
Sec. 625. Foreign students.
Sec. 626. Services to family members of certain officers and agents killed
in the line of duty.

Subtitle C—Provisions Relating to Visa Processing and Consular
Efficiency
Sec. 631. Validity of period of visas.
Sec. 632. Elimination of consulate shopping for visa overstays.
Sec. 633. Authority to determine visa processing procedures.
Sec. 634. Changes regarding visa application process.
Sec. 635. Visa waiver program.
Sec. 636. Fee for diversity immigrant lottery.
Sec. 637. Eligibility for visas for certain Polish applicants for the 1995
diversity immigrant program.

Subtitle D—Other Provisions
Sec. 641. Program to collect information relating to nonimmigrant foreign
students.
Sec. 642. Communication between government agencies and the Immigration and Naturalization Service.
Sec. 643. Regulations regarding habitual residence.
Sec. 644. Information regarding female genital mutilation.
Sec. 645. Criminalization of female genital mutilation.

110 STAT. 3009–553

PUBLIC LAW 104–208—SEPT. 30, 1996

Sec. 646. Adjustment of status for certain Polish and Hungarian parolees.
Sec. 647. Support of demonstration projects.
Sec. 648. Sense of Congress regarding American-made products; requirements regarding notice.
Sec. 649. Vessel movement controls during immigration emergency.
Sec. 650. Review of practices of testing entities.
Sec. 651. Designation of a United States customs administrative building.
Sec. 652. Mail-order bride business.
Sec. 653. Review and report on H–2A nonimmigrant workers program.
Sec. 654. Report on allegations of harassment by Canadian customs agents.
Sec. 655. Sense of Congress on discriminatory application of New Brunswick provincial sales tax.
Sec. 656. Improvements in identification-related documents.
Sec. 657. Development of prototype of counterfeit-resistant Social Security
card.
Sec. 658. Border Patrol Museum.
Sec. 659. Sense of the Congress regarding the mission of the Immigration
and Naturalization Service.
Sec. 660. Authority for National Guard to assist in transportation of certain
aliens.

Subtitle E—Technical Corrections
Sec. 671. Miscellaneous technical corrections.
8 USC 1101 note.

(e) SEVERABILITY.—If any provision of this division or the
application of such provision to any person or circumstances is
held to be unconstitutional, the remainder of this division and
the application of the provisions of this division to any person
or circumstance shall not be affected thereby.

TITLE I—IMPROVEMENTS TO BORDER
CONTROL, FACILITATION OF LEGAL
ENTRY, AND INTERIOR ENFORCEMENT
Subtitle A—Improved Enforcement at the
Border
SEC. 101. BORDER PATROL AGENTS AND SUPPORT PERSONNEL.

(a) INCREASED NUMBER OF BORDER PATROL AGENTS.—The
Attorney General in each of fiscal years 1997, 1998, 1999, 2000,
and 2001 shall increase by not less than 1,000 the number of
positions for full-time, active-duty border patrol agents within the
Immigration and Naturalization Service above the number of such
positions for which funds were allotted for the preceding fiscal
year.
(b) INCREASE IN BORDER PATROL SUPPORT PERSONNEL.—The
Attorney General, in each of fiscal years 1997, 1998, 1999, 2000,

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–554

and 2001, may increase by 300 the number of positions for personnel
in support of border patrol agents above the number of such positions for which funds were allotted for the preceding fiscal year.
(c) DEPLOYMENT OF BORDER PATROL AGENTS.—The Attorney
General shall, to the maximum extent practicable, ensure that
additional border patrol agents shall be deployed among Immigration and Naturalization Service sectors along the border in proportion to the level of illegal crossing of the borders of the United
States measured in each sector during the preceding fiscal year
and reasonably anticipated in the next fiscal year.
(d) FORWARD DEPLOYMENT.—
(1) IN GENERAL.—The Attorney General shall forward
deploy existing border patrol agents in those areas of the border
identified as areas of high illegal entry into the United States
in order to provide a uniform and visible deterrent to illegal
entry on a continuing basis. The previous sentence shall not
apply to border patrol agents located at checkpoints.
(2) PRESERVATION OF LAW ENFORCEMENT FUNCTIONS AND
CAPABILITIES IN INTERIOR STATES.—The Attorney General shall,
when deploying border patrol personnel from interior stations
to border stations, coordinate with, and act in conjunction with,
State and local law enforcement agencies to ensure that such
deployment does not degrade or compromise the law enforcement capabilities and functions currently performed at interior
border patrol stations.
(3) REPORT.—Not later than 6 months after the date of
the enactment of this Act, the Attorney General shall submit
to the Committees on the Judiciary of the House of Representatives and of the Senate a report on—
(A) the progress and effectiveness of the forward
deployment under paragraph (1); and
(B) the measures taken to comply with paragraph (2).
SEC. 102. IMPROVEMENT OF BARRIERS AT BORDER.

(a) IN GENERAL.—The Attorney General, in consultation with
the Commissioner of Immigration and Naturalization, shall take
such actions as may be necessary to install additional physical
barriers and roads (including the removal of obstacles to detection
of illegal entrants) in the vicinity of the United States border
to deter illegal crossings in areas of high illegal entry into the
United States.
(b) CONSTRUCTION OF FENCING AND ROAD IMPROVEMENTS IN
THE BORDER AREA NEAR SAN DIEGO, CALIFORNIA.—
(1) IN GENERAL.—In carrying out subsection (a), the Attorney General shall provide for the construction along the 14
miles of the international land border of the United States,
starting at the Pacific Ocean and extending eastward, of second
and third fences, in addition to the existing reinforced fence,
and for roads between the fences.
(2) PROMPT ACQUISITION OF NECESSARY EASEMENTS.—The
Attorney General, acting under the authority conferred in section 103(b) of the Immigration and Nationality Act (as inserted
by subsection (d)), shall promptly acquire such easements as
may be necessary to carry out this subsection and shall commence construction of fences immediately following such
acquisition (or conclusion of portions thereof).

8 USC 1103 note.

110 STAT. 3009–555

PUBLIC LAW 104–208—SEPT. 30, 1996

(3) SAFETY FEATURES.—The Attorney General, while constructing the additional fencing under this subsection, shall
incorporate such safety features into the design of the fence
system as are necessary to ensure the well-being of border
patrol agents deployed within or in near proximity to the system.
(4) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to carry out this subsection not to
exceed $12,000,000. Amounts appropriated under this paragraph are authorized to remain available until expended.
(c) WAIVER.—The provisions of the Endangered Species Act
of 1973 and the National Environmental Policy Act of 1969 are
waived to the extent the Attorney General determines necessary
to ensure expeditious construction of the barriers and roads under
this section.
(d) LAND ACQUISITION AUTHORITY.—
(1) IN GENERAL.—Section 103 (8 U.S.C. 1103) is amended—
(A) by redesignating subsections (b), (c), and (d) as
subsections (c), (d), and (e), respectively; and
(B) by inserting after subsection (a) the following:
‘‘(b)(1) The Attorney General may contract for or buy any
interest in land, including temporary use rights, adjacent to or
in the vicinity of an international land border when the Attorney
General deems the land essential to control and guard the boundaries and borders of the United States against any violation of
this Act.
‘‘(2) The Attorney General may contract for or buy any interest
in land identified pursuant to paragraph (1) as soon as the lawful
owner of that interest fixes a price for it and the Attorney General
considers that price to be reasonable.
‘‘(3) When the Attorney General and the lawful owner of an
interest identified pursuant to paragraph (1) are unable to agree
upon a reasonable price, the Attorney General may commence condemnation proceedings pursuant to the Act of August 1, 1888 (Chapter 728; 25 Stat. 357).
‘‘(4) The Attorney General may accept for the United States
a gift of any interest in land identified pursuant to paragraph
(1).’’.
(2) CONFORMING AMENDMENT.—Section 103(e) (as so
redesignated by paragraph (1)(A)) is amended by striking ‘‘subsection (c)’’ and inserting ‘‘subsection (d)’’.
8 USC 1103 note.

SEC. 103. IMPROVED BORDER EQUIPMENT AND TECHNOLOGY.

The Attorney General is authorized to acquire and use, for
the purpose of detection, interdiction, and reduction of illegal
immigration into the United States, any Federal equipment (including fixed wing aircraft, helicopters, four-wheel drive vehicles,
sedans, night vision goggles, night vision scopes, and sensor units)
determined available for transfer by any other agency of the Federal
Government upon request of the Attorney General.
SEC. 104. IMPROVEMENT IN BORDER CROSSING IDENTIFICATION
CARD.

(a) IN GENERAL.—Section 101(a)(6) (8 U.S.C. 1101(a)(6)) is
amended by adding at the end the following: ‘‘Such regulations
shall provide that (A) each such document include a biometric
identifier (such as the fingerprint or handprint of the alien) that
is machine readable and (B) an alien presenting a border crossing

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–556

identification card is not permitted to cross over the border into
the United States unless the biometric identifier contained on the
card matches the appropriate biometric characteristic of the alien.’’.
(b) EFFECTIVE DATES.—
(1) CLAUSE A.—Clause (A) of the sentence added by the
amendment made by subsection (a) shall apply to documents
issued on or after 18 months after the date of the enactment
of this Act.
(2) CLAUSE B.—Clause (B) of such sentence shall apply
to cards presented on or after 3 years after the date of the
enactment of this Act.

8 USC 1101 note.

SEC. 105. CIVIL PENALTIES FOR ILLEGAL ENTRY.

(a) IN GENERAL.—Section 275 (8 U.S.C. 1325) is amended—
(1) by redesignating subsections (b) and (c) as subsections
(c) and (d), respectively; and
(2) by inserting after subsection (a) the following:
‘‘(b) Any alien who is apprehended while entering (or attempting
to enter) the United States at a time or place other than as designated by immigration officers shall be subject to a civil penalty
of—
‘‘(1) at least $50 and not more than $250 for each such
entry (or attempted entry); or
‘‘(2) twice the amount specified in paragraph (1) in the
case of an alien who has been previously subject to a civil
penalty under this subsection.
Civil penalties under this subsection are in addition to, and not
in lieu of, any criminal or other civil penalties that may be
imposed.’’.
(b) EFFECTIVE DATE.—The amendments made by subsection
(a) shall apply to illegal entries or attempts to enter occurring
on or after the first day of the sixth month beginning after the
date of the enactment of this Act.
SEC. 106. HIRING AND TRAINING STANDARDS.

(a) REVIEW OF HIRING STANDARDS.—Not later than 60 days
after the date of the enactment of this Act, the Attorney General
shall complete a review of all prescreening and hiring standards
used by the Commissioner of Immigration and Naturalization, and,
where necessary, revise such standards to ensure that they are
consistent with relevant standards of professionalism.
(b) CERTIFICATION.—At the conclusion of each of fiscal years
1997, 1998, 1999, 2000, and 2001, the Attorney General shall certify
in writing to the Committees on the Judiciary of the House of
Representatives and of the Senate that all personnel hired by
the Commissioner of Immigration and Naturalization for such fiscal
year were hired pursuant to the appropriate standards, as revised
under subsection (a).
(c) REVIEW OF TRAINING STANDARDS.—
(1) REVIEW.—Not later than 180 days after the date of
the enactment of this Act, the Attorney General shall complete
a review of the sufficiency of all training standards used by
the Commissioner of Immigration and Naturalization.
(2) REPORT.—
(A) IN GENERAL.—Not later than 90 days after the
completion of the review under paragraph (1), the Attorney
General shall submit a report to the Committees on the

8 USC 1325 note.

8 USC 1103 note.

110 STAT. 3009–557

PUBLIC LAW 104–208—SEPT. 30, 1996
Judiciary of the House of Representatives and of the Senate
on the results of the review, including—
(i) a description of the status of efforts to update
and improve training throughout the Immigration and
Naturalization Service; and
(ii) an estimate of when such efforts are expected
to be completed.
(B) AREAS REQUIRING FUTURE REVIEW.—The report
shall disclose those areas of training that the Attorney
General determines require further review in the future.

8 USC 1103 note.

SEC. 107. REPORT ON BORDER STRATEGY.

(a) EVALUATION OF STRATEGY.—The Comptroller General of
the United States shall track, monitor, and evaluate the Attorney
General’s strategy to deter illegal entry in the United States to
determine the efficacy of such strategy.
(b) COOPERATION.—The Attorney General, the Secretary of
State, and the Secretary of Defense shall cooperate with the
Comptroller General of the United States in carrying out subsection
(a).
(c) REPORT.—Not later than one year after the date of the
enactment of this Act, and every year thereafter for the succeeding
5 years, the Comptroller General of the United States shall submit
a report to the Committees on the Judiciary of the House of Representatives and of the Senate on the results of the activities
undertaken under subsection (a) during the previous year. Each
such report shall include an analysis of the degree to which the
Attorney General’s strategy has been effective in reducing illegal
entry. Each such report shall include a collection and systematic
analysis of data, including workload indicators, related to activities
to deter illegal entry and recommendations to improve and increase
border security at the border and ports of entry.
SEC. 108. CRIMINAL PENALTIES FOR HIGH SPEED FLIGHTS FROM
IMMIGRATION CHECKPOINTS.
18 USC 758 note.

(a) FINDINGS.—The Congress finds as follows:
(1) Immigration checkpoints are an important component
of the national strategy to prevent illegal immigration.
(2) Individuals fleeing immigration checkpoints and leading
law enforcement officials on high speed vehicle chases endanger
law enforcement officers, innocent bystanders, and the fleeing
individuals themselves.
(3) The pursuit of suspects fleeing immigration checkpoints
is complicated by overlapping jurisdiction among Federal, State,
and local law enforcement officers.
(b) HIGH SPEED FLIGHT FROM IMMIGRATION CHECKPOINTS.—
(1) IN GENERAL.—Chapter 35 of title 18, United States
Code, is amended by adding at the end the following:
‘‘§ 758. High speed flight from immigration checkpoint
‘‘Whoever flees or evades a checkpoint operated by the Immigration and Naturalization Service, or any other Federal law enforcement agency, in a motor vehicle and flees Federal, State, or local
law enforcement agents in excess of the legal speed limit shall
be fined under this title, imprisoned not more than five years,
or both.’’.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–558

(2) CLERICAL AMENDMENT.—The table of sections at the
beginning of such chapter is amended by inserting after the
item relating to section 757 the following:
‘‘758. High speed flight from immigration checkpoint.’’.

(c) GROUNDS FOR DEPORTATION.—Section 241(a)(2)(A) (8 U.S.C.
1251(a)(2)(A)) is amended—
(1) by redesignating clause (iv) as clause (v);
(2) by inserting after clause (iii) the following:
‘‘(iv) HIGH SPEED FLIGHT.—Any alien who is convicted of a violation of section 758 of title 18, United
States Code, (relating to high speed flight from an
immigration checkpoint) is deportable.’’; and
(3) in clause (v) (as so redesignated by paragraph (1)),
by striking ‘‘and (iii)’’ and inserting ‘‘(iii), and (iv)’’.
SEC. 109. JOINT STUDY OF AUTOMATED DATA COLLECTION.

(a) STUDY.—The Attorney General, together with the Secretary
of State, the Secretary of Agriculture, the Secretary of the Treasury,
and appropriate representatives of the air transport industry, shall
jointly undertake a study to develop a plan for making the transition
to automated data collection at ports of entry.
(b) REPORT.—Nine months after the date of the enactment
of this Act, the Attorney General shall submit a report to the
Committees on the Judiciary of the Senate and the House of Representatives on the outcome of the joint initiative under subsection
(a), noting specific areas of agreement and disagreement, and recommending further steps to be taken, including any suggestions
for legislation.
SEC. 110. AUTOMATED ENTRY-EXIT CONTROL SYSTEM.

(a) SYSTEM.—Not later than 2 years after the date of the
enactment of this Act, the Attorney General shall develop an automated entry and exit control system that will—
(1) collect a record of departure for every alien departing
the United States and match the records of departure with
the record of the alien’s arrival in the United States; and
(2) enable the Attorney General to identify, through online searching procedures, lawfully admitted nonimmigrants
who remain in the United States beyond the period authorized
by the Attorney General.
(b) REPORT.—
(1) DEADLINE.—Not later than December 31 of each year
following the development of the system under subsection (a),
the Attorney General shall submit an annual report to the
Committees on the Judiciary of the House of Representatives
and of the Senate on such system.
(2) INFORMATION.—The report shall include the following
information:
(A) The number of departure records collected, with
an accounting by country of nationality of the departing
alien.
(B) The number of departure records that were successfully matched to records of the alien’s prior arrival in
the United States, with an accounting by the alien’s country
of nationality and by the alien’s classification as an
immigrant or nonimmigrant.

8 USC 1221 note.

110 STAT. 3009–559

PUBLIC LAW 104–208—SEPT. 30, 1996

(C) The number of aliens who arrived as nonimmigrants, or as a visitor under the visa waiver program
under section 217 of the Immigration and Nationality Act,
for whom no matching departure record has been obtained
through the system or through other means as of the
end of the alien’s authorized period of stay, with an
accounting by the alien’s country of nationality and date
of arrival in the United States.
(c) USE OF INFORMATION ON OVERSTAYS.—Information regarding aliens who have remained in the United Staty beyond their
authorized period of stay identified through the system shall be
integrated into appropriate data bases of the Immigration and
Naturalization Service and the Department of State, including those
used at ports of entry and at consular offices.
SEC. 111. SUBMISSION OF FINAL PLAN ON REALIGNMENT OF BORDER
PATROL POSITIONS FROM INTERIOR STATIONS.

Not later than November 30, 1996, the Attorney General shall
submit to the Committees on the Judiciary of the House of Representatives and of the Senate a final plan regarding the redeployment of border patrol personnel from interior locations to the front
lines of the border. The final plan shall be consistent with the
following:
(1) The preliminary plan regarding such redeployment
submitted by the Attorney General on May 17, 1996, to the
Committee on Appropriations of the House of Representatives
and the Committee on Appropriations of the Senate.
(2) The direction regarding such redeployment provided
in the joint explanatory statement of the committee of conference in the conference report to accompany the Omnibus
Consolidated Rescissions and Appropriations Act of 1996 (Public
Law 104-134).
SEC. 112. NATIONWIDE FINGERPRINTING OF APPREHENDED ALIENS.

There are authorized to be appropriated such additional sums
as may be necessary to ensure that the ‘‘IDENT’’ program (operated
by the Immigration and Naturalization Service) is expanded to
apply to illegal or criminal aliens apprehended nationwide.

Subtitle B—Facilitation of Legal Entry
SEC. 121. LAND BORDER INSPECTORS.

In order to eliminate undue delay in the thorough inspection
of persons and vehicles lawfully attempting to enter the United
States, the Attorney General and the Secretary of the Treasury
each shall increase, by approximately equal numbers in each of
fiscal years 1997 and 1998, the number of full-time land border
inspectors assigned to active duty by the Immigration and Naturalization Service and the United States Customs Service to a
level adequate to assure full staffing during peak crossing hours
of all border crossing lanes currently in use, under construction,
or whose construction has been authorized by the Congress, except
such low-use lanes as the Attorney General may designate.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–560

SEC. 122. LAND BORDER INSPECTION AND AUTOMATED PERMIT PILOT
PROJECTS.

(a) EXTENSION OF LAND BORDER INSPECTION PROJECT AUTHORESTABLISHMENT OF AUTOMATED PERMIT PILOT PROJECTS.—Section 286(q) is amended—
(1) by striking the matter preceding paragraph (2) and
inserting the following:
‘‘(q) LAND BORDER INSPECTION FEE ACCOUNT.—(1)(A)(i) Notwithstanding any other provision of law, the Attorney General
is authorized to establish, by regulation, not more than 6 projects
under which a fee may be charged and collected for inspection
services provided at one or more land border points of entry. Such
projects may include the establishment of commuter lanes to be
made available to qualified United States citizens and aliens, as
determined by the Attorney General.
‘‘(ii) The program authorized in this subparagraph shall terminate on September 30, 2000, unless further authorized by an Act
of Congress.
‘‘(iii) This subparagraph shall take effect, with respect to any
project described in clause (1) that was not authorized to be commenced before the date of the enactment of the Illegal Immigration
Reform and Immigrant Responsibility Act of 1996, 30 days after
submission of a written plan by the Attorney General detailing
the proposed implementation of such project.
‘‘(iv) The Attorney General shall prepare and submit on a
quarterly basis, until September 30, 2000, a status report on each
land border inspection project implemented under this subparagraph.
‘‘(B) The Attorney General, in consultation with the Secretary
of the Treasury, may conduct pilot projects to demonstrate the
use of designated ports of entry after working hours through the
use of card reading machines or other appropriate technology.’’;
and
(2) by striking paragraph (5).
(b) CONFORMING AMENDMENT.—The Departments of Commerce,
Justice, and State, the Judiciary, and Related Agencies Appropriation Act, 1994 (Public Law 103–121, 107 Stat. 1161) is amended
by striking the fourth proviso under the heading ‘‘Immigration
and Naturalization Service, Salaries and Expenses’’.
ITY;

8 USC 1356.

8 USC 1356 note.

SEC. 123. PREINSPECTION AT FOREIGN AIRPORTS.

(a) IN GENERAL.—The Immigration and Nationality Act is
amended by inserting after section 235 the following:
‘‘PREINSPECTION

AT FOREIGN AIRPORTS

‘‘SEC. 235A. (a) ESTABLISHMENT OF PREINSPECTION STATIONS.—
‘‘(1) NEW STATIONS.—Subject to paragraph (5), not later
than October 31, 1998, the Attorney General, in consultation
with the Secretary of State, shall establish and maintain
preinspection stations in at least 5 of the foreign airports that
are among the 10 foreign airports which the Attorney General
identifies as serving as last points of departure for the greatest
numbers of inadmissible alien passengers who arrive from
abroad by air at ports of entry within the United States. Such
preinspection stations shall be in addition to any preinspection
stations established prior to the date of the enactment of such
Act.

8 USC 1225a.

110 STAT. 3009–561

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(2) REPORT.—Not later than October 31, 1998, the Attorney General shall report to the Committees on the Judiciary
of the House of Representatives and of the Senate on the
implementation of paragraph (1).
‘‘(3) DATA COLLECTION.—Not later than November 1, 1997,
and each subsequent November 1, the Attorney General shall
compile data identifying—
‘‘(A) the foreign airports which served as last points
of departure for aliens who arrived by air at United States
ports of entry without valid documentation during the
preceding fiscal years;
‘‘(B) the number and nationality of such aliens arriving
from each such foreign airport; and
‘‘(C) the primary routes such aliens followed from their
country of origin to the United States.
‘‘(4) ADDITIONAL STATIONS.—Subject to paragraph (5), not
later than October 31, 2000, the Attorney General, in consultation with the Secretary of State, shall establish preinspection
stations in at least 5 additional foreign airports which the
Attorney General, in consultation with the Secretary of State,
determines, based on the data compiled under paragraph (3)
and such other information as may be available, would most
effectively reduce the number of aliens who arrive from abroad
by air at points of entry within the United States who are
inadmissible to the United States. Such preinspection stations
shall be in addition to those established prior to the date
of the enactment of such Act or pursuant to paragraph (1).
‘‘(5) CONDITIONS.—Prior to the establishment of a
preinspection station, the Attorney General, in consultation
with the Secretary of State, shall ensure that—
‘‘(A) employees of the United States stationed at the
preinspection station and their accompanying family members will receive appropriate protection;
‘‘(B) such employees and their families will not be
subject to unreasonable risks to their welfare and safety;
and
‘‘(C) the country in which the preinspection station
is to be established maintains practices and procedures
with respect to asylum seekers and refugees in accordance
with the Convention Relating to the Status of Refugees
(done at Geneva, July 28, 1951), or the Protocol Relating
to the Status of Refugees (done at New York, January
31, 1967), or that an alien in the country otherwise has
recourse to avenues of protection from return to persecution.
‘‘(b) ESTABLISHMENT OF CARRIER CONSULTANT PROGRAM.—The
Attorney General shall assign additional immigration officers to
assist air carriers in the detection of fraudulent documents at
foreign airports which, based on the records maintained pursuant
to subsection (a)(3), served as a point of departure for a significant
number of arrivals at United States ports of entry without valid
documentation, but where no preinspection station exists.’’.
(b) CLERICAL AMENDMENT.—The table of contents is amended
by inserting after the item relating to section 235 the following:
‘‘Sec. 235A.

Preinspection at foreign airports.’’.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–562

SEC. 124. TRAINING OF AIRLINE PERSONNEL IN DETECTION OF
FRAUDULENT DOCUMENTS.

(a) USE OF FUNDS.—
(1) IN GENERAL.—Section 286(h)(2)(A) (8 U.S.C.
1356(h)(2)(A)) is amended—
(A) in clause (iv), by inserting ‘‘, including training
of, and technical assistance to, commercial airline personnel
regarding such detection’’ after ‘‘United States’’; and
(B) by adding at the end the following:
‘‘The Attorney General shall provide for expenditures for training
and assistance described in clause (iv) in an amount, for any fiscal
year, not less than 5 percent of the total of the expenses incurred
that are described in the previous sentence.’’.
(2) APPLICABILITY.—The amendments made by paragraph
(1) shall apply to expenses incurred during or after fiscal year
1997.
(b) COMPLIANCE WITH DETECTION REGULATIONS.—
(1) IN GENERAL.—Section 212(f) (8 U.S.C. 1182(f)) is amended by adding at the end the following: ‘‘Whenever the Attorney
General finds that a commercial airline has failed to comply
with regulations of the Attorney General relating to requirements of airlines for the detection of fraudulent documents
used by passengers traveling to the United States (including
the training of personnel in such detection), the Attorney General may suspend the entry of some or all aliens transported
to the United States by such airline.’’.
(2) DEADLINE.—The Attorney General shall first issue, in
proposed form, regulations referred to in the second sentence
of section 212(f) of the Immigration and Nationality Act, as
added by the amendment made by paragraph (1), not later
than 90 days after the date of the enactment of this Act.
SEC. 125. PRECLEARANCE AUTHORITY.

Section 103(a) of the Immigration and Nationality Act (8 U.S.C.
1103(a)) is amended by adding at the end the following:
‘‘After consultation with the Secretary of State, the Attorney General may authorize officers of a foreign country to be stationed
at preclearance facilities in the United States for the purpose of
ensuring that persons traveling from or through the United States
to that foreign country comply with that country’s immigration
and related laws. Those officers may exercise such authority and
perform such duties as United States immigration officers are
authorized to exercise and perform in that foreign country under
reciprocal agreement, and they shall enjoy such reasonable privileges and immunities necessary for the performance of their duties
as the government of their country extends to United States
immigration officers.’’.

Subtitle C—Interior Enforcement
SEC. 131. AUTHORIZATION OF APPROPRIATIONS FOR INCREASE IN
NUMBER OF CERTAIN INVESTIGATORS.

(a) AUTHORIZATION.—There are authorized to be appropriated
such funds as may be necessary to enable the Commissioner of
Immigration and Naturalization to increase the number of investigators and support personnel to investigate potential violations

8 USC 1356 note.

8 USC 1182 note.

110 STAT. 3009–563

PUBLIC LAW 104–208—SEPT. 30, 1996

of sections 274 and 274A of the Immigration and Nationality Act
by a number equivalent to 300 full-time active-duty investigators
in each of fiscal years 1997, 1998, and 1999.
(b) ALLOCATION OF INVESTIGATORS.—At least one-half of the
investigators hired with funds made available under subsection
(a) shall be assigned to investigate potential violations of section
274A of the Immigration and Nationality Act.
(c) LIMITATION ON OVERTIME.—None of the funds made available under subsection (a) shall be available for administrative
expenses to pay any employee overtime pay in an amount in excess
of $25,000 for any fiscal year.
SEC. 132. AUTHORIZATION OF APPROPRIATIONS FOR INCREASE IN
NUMBER OF INVESTIGATORS OF VISA OVERSTAYERS.

There are authorized to be appropriated such funds as may
be necessary to enable the Commissioner of Immigration and Naturalization to increase the number of investigators and support
personnel to investigate visa overstayers by a number equivalent
to 300 full-time active-duty investigators in fiscal year 1997.
SEC. 133. ACCEPTANCE OF STATE SERVICES TO CARRY OUT IMMIGRATION ENFORCEMENT.

Section 287 (8 U.S.C. 1357) is amended by adding at the end
the following:
‘‘(g)(1) Notwithstanding section 1342 of title 31, United States
Code, the Attorney General may enter into a written agreement
with a State, or any political subdivision of a State, pursuant
to which an officer or employee of the State or subdivision, who
is determined by the Attorney General to be qualified to perform
a function of an immigration officer in relation to the investigation,
apprehension, or detention of aliens in the United States (including
the transportation of such aliens across State lines to detention
centers), may carry out such function at the expense of the State
or political subdivision and to the extent consistent with State
and local law.
‘‘(2) An agreement under this subsection shall require that
an officer or employee of a State or political subdivision of a State
performing a function under the agreement shall have knowledge
of, and adhere to, Federal law relating to the function, and shall
contain a written certification that the officers or employees
performing the function under the agreement have received adequate training regarding the enforcement of relevant Federal
immigration laws.
‘‘(3) In performing a function under this subsection, an officer
or employee of a State or political subdivision of a State shall
be subject to the direction and supervision of the Attorney General.
‘‘(4) In performing a function under this subsection, an officer
or employee of a State or political subdivision of a State may
use Federal property or facilities, as provided in a written agreement between the Attorney General and the State or subdivision.
‘‘(5) With respect to each officer or employee of a State or
political subdivision who is authorized to perform a function under
this subsection, the specific powers and duties that may be, or
are required to be, exercised or performed by the individual, the
duration of the authority of the individual, and the position of
the agency of the Attorney General who is required to supervise
and direct the individual, shall be set forth in a written agreement
between the Attorney General and the State or political subdivision.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–564

‘‘(6) The Attorney General may not accept a service under
this subsection if the service will be used to displace any Federal
employee.
‘‘(7) Except as provided in paragraph (8), an officer or employee
of a State or political subdivision of a State performing functions
under this subsection shall not be treated as a Federal employee
for any purpose other than for purposes of chapter 81 of title
5, United States Code, (relating to compensation for injury) and
sections 2671 through 2680 of title 28, United States Code (relating
to tort claims).
‘‘(8) An officer or employee of a State or political subdivision
of a State acting under color of authority under this subsection,
or any agreement entered into under this subsection, shall be
considered to be acting under color of Federal authority for purposes
of determining the liability, and immunity from suit, of the officer
or employee in a civil action brought under Federal or State law.
‘‘(9) Nothing in this subsection shall be construed to require
any State or political subdivision of a State to enter into an agreement with the Attorney General under this subsection.
‘‘(10) Nothing in this subsection shall be construed to require
an agreement under this subsection in order for any officer or
employee of a State or political subdivision of a State—
‘‘(A) to communicate with the Attorney General regarding
the immigration status of any individual, including reporting
knowledge that a particular alien is not lawfully present in
the United States; or
‘‘(B) otherwise to cooperate with the Attorney General in
the identification, apprehension, detention, or removal of aliens
not lawfully present in the United States.’’.
SEC. 134. MINIMUM STATE INS PRESENCE.

(a) IN GENERAL.—Section 103 (8 U.S.C. 1103), as amended
by section 102(e) of this division, is further amended by adding
at the end the following:
‘‘(f) The Attorney General shall allocate to each State not fewer
than 10 full-time active duty agents of the Immigration and Naturalization Service to carry out the functions of the Service, in
order to ensure the effective enforcement of this Act.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall take effect 90 days after the date of the enactment of this
Act.

TITLE II—ENHANCED ENFORCEMENT
AND PENALTIES AGAINST ALIEN
SMUGGLING; DOCUMENT FRAUD
Subtitle A—Enhanced Enforcement and
Penalties Against Alien Smuggling
SEC. 201. WIRETAP AUTHORITY FOR INVESTIGATIONS OF ALIEN SMUGGLING OR DOCUMENT FRAUD.

Section 2516(1) of title 18, United States Code, is amended—
(1) in paragraph (c), by striking ‘‘or section 1992 (relating
to wrecking trains)’’ and inserting ‘‘section 1992 (relating to

8 USC 1103 note.

110 STAT. 3009–565

PUBLIC LAW 104–208—SEPT. 30, 1996

wrecking trains), a felony violation of section 1028 (relating
to production of false identification documentation), section
1425 (relating to the procurement of citizenship or nationalization unlawfully), section 1426 (relating to the reproduction of
naturalization or citizenship papers), section 1427 (relating to
the sale of naturalization or citizenship papers), section 1541
(relating to passport issuance without authority), section 1542
(relating to false statements in passport applications), section
1543 (relating to forgery or false use of passports), section
1544 (relating to misuse of passports), or section 1546 (relating
to fraud and misuse of visas, permits, and other documents)’’;
(2) by striking ‘‘or’’ at the end of paragraph (l);
(3) by redesignating paragraphs (m), (n), and (o) as paragraphs (n), (o), and (p), respectively; and
(4) by inserting after paragraph (l) the following new paragraph:
‘‘(m) a violation of section 274, 277, or 278 of the Immigration and Nationality Act (8 U.S.C. 1324, 1327, or 1328) (relating
to the smuggling of aliens);’’.
SEC. 202. RACKETEERING OFFENSES RELATING TO ALIEN SMUGGLING.

Section 1961(1) of title 18, United States Code, as amended
by section 433 of Public Law 104–132, is amended—
(1) by striking ‘‘if the act indictable under section 1028
was committed for the purpose of financial gain’’;
(2) by inserting ‘‘section 1425 (relating to the procurement
of citizenship or nationalization unlawfully), section 1426 (relating to the reproduction of naturalization or citizenship papers),
section 1427 (relating to the sale of naturalization or citizenship
papers),’’ after ‘‘section 1344 (relating to financial institution
fraud),’’;
(3) by striking ‘‘if the act indictable under section 1542
was committed for the purpose of financial gain’’;
(4) by striking ‘‘if the act indictable under section 1543
was committed for the purpose of financial gain’’;
(5) by striking ‘‘if the act indictable under section 1544
was committed for the purpose of financial gain’’; and
(6) by striking ‘‘if the act indictable under section 1546
was committed for the purpose of financial gain’’.
SEC. 203. INCREASED CRIMINAL PENALTIES FOR ALIEN SMUGGLING.

(a) COMMERCIAL ADVANTAGE.—Section 274(a)(1)(B)(i) (8 U.S.C.
1324(a)(1)(B)(i)) is amended by inserting ‘‘or in the case of a violation of subparagraph (A)(ii), (iii), or (iv) in which the offense was
done for the purpose of commercial advantage or private financial
gain’’ after ‘‘subparagraph (A)(i)’’.
(b) ADDITIONAL OFFENSES.—Section 274(a) (8 U.S.C. 1324(a))
is amended—
(1) in paragraph (1)(A)—
(A) by striking ‘‘or’’ at the end of clause (iii);
(B) by striking the comma at the end of clause (iv)
and inserting ‘‘; or’’; and
(C) by adding at the end the following new clause:
‘‘(v)(I) engages in any conspiracy to commit any of the
preceding acts, or
‘‘(II) aids or abets the commission of any of the preceding
acts,’’;
(2) in paragraph (1)(B)—

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–566

(A) in clause (i), by inserting ‘‘or (v)(I)’’ after ‘‘(A)(i)’’;
(B) in clause (ii), by striking ‘‘or (iv)’’ and inserting
‘‘(iv), or (v)(II)’’;
(C) in clause (iii), by striking ‘‘or (iv)’’ and inserting
‘‘(iv), or (v)’’; and
(D) in clause (iv), by striking ‘‘or (iv)’’ and inserting
‘‘(iv), or (v)’’;
(3) in paragraph (2)(B), by striking ‘‘be fined’’ and all that
follows and inserting the following: ‘‘be fined under title 18,
United States Code, and shall be imprisoned, in the case of
a first or second violation of subparagraph (B)(iii), not more
than 10 years, in the case of a first or second violation of
subparagraph (B)(i) or (B)(ii), not less than 3 nor more than
10 years, and for any other violation, not less than 5 nor
more than 15 years.’’; and
(4) by adding at the end the following new paragraph:
‘‘(3)(A) Any person who, during any 12-month period, knowingly
hires for employment at least 10 individuals with actual knowledge
that the individuals are aliens described in subparagraph (B) shall
be fined under title 18, United States Code, or imprisoned for
not more than 5 years, or both.
‘‘(B) An alien described in this subparagraph is an alien who—
‘‘(i) is an unauthorized alien (as defined in section
274A(h)(3)), and
‘‘(ii) has been brought into the United States in violation
of this subsection.’’.
(c) SMUGGLING OF ALIENS WHO WILL COMMIT CRIMES.—Clause
(i) of section 274(a)(2)(B) (8 U.S.C. 1324(a)(2)(B)) is amended to
read as follows:
‘‘(i) an offense committed with the intent or with reason
to believe that the alien unlawfully brought into the United
States will commit an offense against the United States
or any State punishable by imprisonment for more than
1 year,’’.
(d) APPLYING CERTAIN PENALTIES ON A PER ALIEN BASIS.—
Section 274(a)(2) (8 U.S.C. 1324(a)(2)) is amended by striking ‘‘for
each transaction constituting a violation of this paragraph, regardless of the number of aliens involved’’ and inserting ‘‘for each
alien in respect to whom a violation of this paragraph occurs’’.
(e) SENTENCING GUIDELINES.—
(1) IN GENERAL.—Pursuant to its authority under section
994(p) of title 28, United States Code, the United States
Sentencing Commission shall promulgate sentencing guidelines
or amend existing sentencing guidelines for offenders convicted
of offenses related to smuggling, transporting, harboring, or
inducing aliens in violation of section 274(a) (1)(A) or (2) of
the Immigration and Nationality Act (8 U.S.C. 1324(a)(1)(A),
(2)(B)) in accordance with this subsection.
(2) REQUIREMENTS.—In carrying out this subsection, the
Commission shall, with respect to the offenses described in
paragraph (1)—
(A) increase the base offense level for such offenses
at least 3 offense levels above the applicable level in effect
on the date of the enactment of this Act;
(B) review the sentencing enhancement for the number
of aliens involved (U.S.S.G. 2L1.1(b)(2)), and increase the
sentencing enhancement by at least 50 percent above the

28 USC 994 note.

110 STAT. 3009–567

8 USC 1324 note.

PUBLIC LAW 104–208—SEPT. 30, 1996

applicable enhancement in effect on the date of the enactment of this Act;
(C) impose an appropriate sentencing enhancement
upon an offender with 1 prior felony conviction arising
out of a separate and prior prosecution for an offense
that involved the same or similar underlying conduct as
the current offense, to be applied in addition to any sentencing enhancement that would otherwise apply pursuant to
the calculation of the defendant’s criminal history category;
(D) impose an additional appropriate sentencing
enhancement upon an offender with 2 or more prior felony
convictions arising out of separate and prior prosecutions
for offenses that involved the same or similar underling
conduct as the current offense, to be applied in addition
to any sentencing enhancement that would otherwise apply
pursuant to the calculation of the defendant’s criminal
history category;
(E) impose an appropriate sentencing enhancement on
a defendant who, in the course of committing an offense
described in this subsection—
(i) murders or otherwise causes death, bodily
injury, or serious bodily injury to an individual;
(ii) uses or brandishes a firearm or other dangerous
weapon; or
(iii) engages in conduct that consciously or recklessly places another in serious danger of death or
serious bodily injury;
(F) consider whether a downward adjustment is appropriate if the offense is a first offense and involves the
smuggling only of the alien’s spouse or child; and
(G) consider whether any other aggravating or mitigating circumstances warrant upward or downward sentencing
adjustments.
(3) EMERGENCY AUTHORITY TO SENTENCING COMMISSION.—
The Commission shall promulgate the guidelines or amendments provided for under this subsection as soon as practicable
in accordance with the procedure set forth in section 21(a)
of the Sentencing Act of 1987, as though the authority under
that Act had not expired.
(f) EFFECTIVE DATE.—This section and the amendments made
by this section shall apply with respect to offenses occurring on
or after the date of the enactment of this Act.
SEC. 204. INCREASED NUMBER OF ASSISTANT UNITED STATES ATTORNEYS.

(a) IN GENERAL.—The number of Assistant United States Attorneys employed by the Department of Justice for the fiscal year
1997 shall be increased by at least 25 above the number of Assistant
United States Attorneys that were authorized to be employed as
of September 30, 1996.
(b) ASSIGNMENT.—Individuals employed to fill the additional
positions described in subsection (a) shall prosecute persons who
bring into the United States or harbor illegal aliens or violate
other criminal statutes involving illegal aliens.
SEC. 205. UNDERCOVER INVESTIGATION AUTHORITY.

(a) IN GENERAL.—Title II is amended by adding at the end
the following new section:

PUBLIC LAW 104–208—SEPT. 30, 1996
‘‘UNDERCOVER

110 STAT. 3009–568

INVESTIGATION AUTHORITY

‘‘SEC. 294. (a) IN GENERAL.—With respect to any undercover
investigative operation of the Service which is necessary for the
detection and prosecution of crimes against the United States—
‘‘(1) sums appropriated for the Service may be used for
leasing space within the United States and the territories and
possessions of the United States without regard to the following
provisions of law:
‘‘(A) section 3679(a) of the Revised Statutes (31 U.S.C.
1341),
‘‘(B) section 3732(a) of the Revised Statutes (41 U.S.C.
11(a)),
‘‘(C) section 305 of the Act of June 30, 1949 (63 Stat.
396; 41 U.S.C. 255),
‘‘(D) the third undesignated paragraph under the heading ‘Miscellaneous’ of the Act of March 3, 1877 (19 Stat.
370; 40 U.S.C. 34),
‘‘(E) section 3648 of the Revised Statutes (31 U.S.C.
3324),
‘‘(F) section 3741 of the Revised Statutes (41 U.S.C.
22), and
‘‘(G) subsections (a) and (c) of section 304 of the Federal
Property and Administrative Services Act of 1949 (63 Stat.
395; 41 U.S.C. 254 (a) and (c));
‘‘(2) sums appropriated for the Service may be used to
establish or to acquire proprietary corporations or business
entities as part of an undercover operation, and to operate
such corporations or business entities on a commercial basis,
without regard to the provisions of section 304 of the Government Corporation Control Act (31 U.S.C. 9102);
‘‘(3) sums appropriated for the Service, and the proceeds
from the undercover operation, may be deposited in banks
or other financial institutions without regard to the provisions
of section 648 of title 18, United States Code, and of section
3639 of the Revised Statutes (31 U.S.C. 3302); and
‘‘(4) the proceeds from the undercover operation may be
used to offset necessary and reasonable expenses incurred in
such operation without regard to the provisions of section 3617
of the Revised Statutes (31 U.S.C. 3302).
The authority set forth in this subsection may be exercised only
upon written certification of the Commissioner, in consultation with
the Deputy Attorney General, that any action authorized by paragraph (1), (2), (3), or (4) is necessary for the conduct of the undercover operation.
‘‘(b) DISPOSITION OF PROCEEDS NO LONGER REQUIRED.—As soon
as practicable after the proceeds from an undercover investigative
operation, carried out under paragraphs (3) and (4) of subsection
(a), are no longer necessary for the conduct of the operation, the
proceeds or the balance of the proceeds remaining at the time
shall be deposited into the Treasury of the United States as miscellaneous receipts.
‘‘(c) DISPOSITION OF CERTAIN CORPORATIONS AND BUSINESS
ENTITIES.—If a corporation or business entity established or
acquired as part of an undercover operation under paragraph (2)
of subsection (a) with a net value of over $50,000 is to be liquidated,
sold, or otherwise disposed of, the Service, as much in advance

8 USC 1363a.

110 STAT. 3009–569

PUBLIC LAW 104–208—SEPT. 30, 1996

as the Commissioner or Commissioner’s designee determines practicable, shall report the circumstances to the Attorney General,
the Director of the Office of Management and Budget, and the
Comptroller General. The proceeds of the liquidation, sale, or other
disposition, after obligations are met, shall be deposited in the
Treasury of the United States as miscellaneous receipts.
‘‘(d) FINANCIAL AUDITS.—The Service shall conduct detailed
financial audits of closed undercover operations on a quarterly
basis and shall report the results of the audits in writing to the
Deputy Attorney General.’’.
(b) CLERICAL AMENDMENT.—The table of contents is amended
by inserting after the item relating to section 293 the following:
‘‘Sec. 294. Undercover investigation authority.’’.

Subtitle B—Deterrence of Document Fraud
SEC. 211. INCREASED CRIMINAL PENALTIES FOR FRAUDULENT USE
OF GOVERNMENT-ISSUED DOCUMENTS.

28 USC 994 note.

(a) FRAUD AND MISUSE OF GOVERNMENT-ISSUED IDENTIFICATION
DOCUMENTS.—(1) Section 1028(b) of title 18, United States Code,
is amended—
(A) in paragraph (1), by inserting ‘‘except as provided in
paragraphs (3) and (4),’’ after ‘‘(1)’’ and by striking ‘‘five years’’
and inserting ‘‘15 years’’;
(B) in paragraph (2), by inserting ‘‘except as provided in
paragraphs (3) and (4),’’ after ‘‘(2)’’ and by striking ‘‘and’’ at
the end;
(C) by redesignating paragraph (3) as paragraph (5); and
(D) by inserting after paragraph (2) the following new
paragraphs:
‘‘(3) a fine under this title or imprisonment for not more
than 20 years, or both, if the offense is committed to facilitate
a drug trafficking crime (as defined in section 929(a)(2) of
this title);
‘‘(4) a fine under this title or imprisonment for not more
than 25 years, or both, if the offense is committed to facilitate
an act of international terrorism (as defined in section 2331(1)
of this title); and’’.
(2) Sections 1425 through 1427, sections 1541 through 1544,
and section 1546(a) of title 18, United States Code, are each amended by striking ‘‘imprisoned not more’’ and all that follows through
‘‘years’’ each place it appears and inserting the following: ‘‘imprisoned not more than 25 years (if the offense was committed to
facilitate an act of international terrorism (as defined in section
2331 of this title)), 20 years (if the offense was committed to
facilitate a drug trafficking crime (as defined in section 929(a)
of this title)), 10 years (in the case of the first or second such
offense, if the offense was not committed to facility such an act
of international terrorism or a drug trafficking crime), or 15 years
(in the case of any other offense)’’.
(b) CHANGES TO THE SENTENCING LEVELS.—
(1) IN GENERAL.—Pursuant to the Commission’s authority
under section 994(p) of title 28, United States Code, the United
States Sentencing Commission shall promulgate sentencing
guidelines or amend existing sentencing guidelines for offenders

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–570

convicted of violating, or conspiring to violate, sections
1028(b)(1), 1425 through 1427, 1541 through 1544, and 1546(a)
of title 18, United States Code, in accordance with this subsection.
(2) REQUIREMENTS.—In carrying out this subsection, the
Commission shall, with respect to the offenses referred to in
paragraph (1)—
(A) increase the base offense level for such offenses
at least 2 offense levels above the level in effect on the
date of the enactment of this Act;
(B) review the sentencing enhancement for number
of documents or passports involved (U.S.S.G. 2L2.1(b)(2)),
and increase the upward adjustment by at least 50 percent
above the applicable enhancement in effect on the date
of the enactment of this Act;
(C) impose an appropriate sentencing enhancement
upon an offender with 1 prior felony conviction arising
out of a separate and prior prosecution for an offense
that involved the same or similar underlying conduct as
the current offense, to be applied in addition to any sentencing enhancement that would otherwise apply pursuant to
the calculation of the defendant’s criminal history category;
(D) impose an additional appropriate sentencing
enhancement upon an offender with 2 or more prior felony
convictions arising out of separate and prior prosecutions
for offenses that involved the same or similar underlying
conduct as the current offense, to be applied in addition
to any sentencing enhancement that would otherwise apply
pursuant to the calculation of the defendant’s criminal
history category; and
(E) consider whether any other aggravating or mitigating circumstances warrant upward or downward sentencing
adjustments.
(3) EMERGENCY AUTHORITY TO SENTENCING COMMISSION.—
The Commission shall promulgate the guidelines or amendments provided for under this subsection as soon as practicable
in accordance with the procedure set forth in section 21(a)
of the Sentencing Act of 1987, as though the authority under
that Act had not expired.
(c) EFFECTIVE DATE.—This section and the amendments made
by this section shall apply with respect to offenses occurring on
or after the date of the enactment of this Act.
SEC. 212. NEW DOCUMENT FRAUD OFFENSES; NEW CIVIL PENALTIES
FOR DOCUMENT FRAUD.

(a) ACTIVITIES PROHIBITED.—Section 274C(a) (8 U.S.C. 1324c(a))
is amended—
(1) in paragraph (1), by inserting before the comma at
the end the following: ‘‘or to obtain a benefit under this Act’’;
(2) in paragraph (2), by inserting before the comma at
the end the following: ‘‘or to obtain a benefit under this Act’’;
(3) in paragraph (3)—
(A) by inserting ‘‘or with respect to’’ after ‘‘issued to’’;
(B) by adding before the comma at the end the following: ‘‘or obtaining a benefit under this Act’’; and
(C) by striking ‘‘or’’ at the end;
(4) in paragraph (4)—

18 USC 1028
note.

110 STAT. 3009–571

8 USC 1324c
note.

PUBLIC LAW 104–208—SEPT. 30, 1996

(A) by inserting ‘‘or with respect to’’ after ‘‘issued to’’;
(B) by adding before the period at the end the following:
‘‘or obtaining a benefit under this Act’’; and
(C) by striking the period at the end and inserting
‘‘, or’’; and
(5) by adding at the end the following new paragraphs:
‘‘(5) to prepare, file, or assist another in preparing or filing,
any application for benefits under this Act, or any document
required under this Act, or any document submitted in connection with such application or document, with knowledge or
in reckless disregard of the fact that such application or document was falsely made or, in whole or in part, does not relate
to the person on whose behalf it was or is being submitted,
or
‘‘(6)(A) to present before boarding a common carrier for
the purpose of coming to the United States a document which
relates to the alien’s eligibility to enter the United States,
and (B) to fail to present such document to an immigration
officer upon arrival at a United States port of entry.’’.
(b) DEFINITION OF FALSELY MAKE.—Section 274C (8 U.S.C.
1324c), as amended by section 213 of this division, is further amended by adding at the end the following new subsection:
‘‘(f) FALSELY MAKE.—For purposes of this section, the term
‘falsely make’ means to prepare or provide an application or document, with knowledge or in reckless disregard of the fact that
the application or document contains a false, fictitious, or fraudulent
statement or material representation, or has no basis in law or
fact, or otherwise fails to state a fact which is material to the
purpose for which it was submitted.’’.
(c) CONFORMING AMENDMENT.—Section 274C(d)(3) (8 U.S.C.
1324c(d)(3)) is amended by striking ‘‘each document used, accepted,
or created and each instance of use, acceptance, or creation’’ each
place it appears and inserting ‘‘each document that is the subject
of a violation under subsection (a)’’.
(d) WAIVER BY ATTORNEY GENERAL.—Section 274C(d) (8 U.S.C.
1324c(d)) is amended by adding at the end the following new
paragraph:
‘‘(7) WAIVER BY ATTORNEY GENERAL.—The Attorney General
may waive the penalties imposed by this section with respect
to an alien who knowingly violates subsection (a)(6) if the
alien is granted asylum under section 208 or withholding of
deportation under section 243(h).’’.
(e) EFFECTIVE DATE.—Section 274C(f) of the Immigration and
Nationality Act, as added by subsection (b), applies to the preparation of applications before, on, or after the date of the enactment
of this Act.
SEC. 213. NEW CRIMINAL PENALTIES FOR FAILURE TO DISCLOSE ROLE
AS PREPARER OF FALSE APPLICATION FOR IMMIGRATION BENEFITS.

Section 274C (8 U.S.C. 1324c) is amended by adding at the
end the following new subsection:
‘‘(e) CRIMINAL PENALTIES FOR FAILURE TO DISCLOSE ROLE AS
DOCUMENT PREPARER.—(1) Whoever, in any matter within the jurisdiction of the Service, knowingly and willfully fails to disclose,
conceals, or covers up the fact that they have, on behalf of any
person and for a fee or other remuneration, prepared or assisted

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–572

in preparing an application which was falsely made (as defined
in subsection (f)) for immigration benefits, shall be fined in accordance with title 18, United States Code, imprisoned for not more
than 5 years, or both, and prohibited from preparing or assisting
in preparing, whether or not for a fee or other remuneration,
any other such application.
‘‘(2) Whoever, having been convicted of a violation of paragraph
(1), knowingly and willfully prepares or assists in preparing an
application for immigration benefits pursuant to this Act, or the
regulations promulgated thereunder, whether or not for a fee or
other remuneration and regardless of whether in any matter within
the jurisdiction of the Service, shall be fined in accordance with
title 18, United States Code, imprisoned for not more than 15
years, or both, and prohibited from preparing or assisting in preparing any other such application.’’.
SEC. 214. CRIMINAL PENALTY FOR KNOWINGLY PRESENTING DOCUMENT WHICH FAILS TO CONTAIN REASONABLE BASIS IN
LAW OR FACT.

The fourth paragraph of section 1546(a) of title 18, United
States Code, is amended by striking ‘‘containing any such false
statement’’ and inserting ‘‘which contains any such false statement
or which fails to contain any reasonable basis in law or fact’’.
SEC. 215. CRIMINAL PENALTY FOR FALSE CLAIM TO CITIZENSHIP.

Section 1015 of title 18, United States Code, is amended—
(1) by striking the dash at the end of paragraph (d) and
inserting ‘‘; or’’, and
(2) by inserting after paragraph (d) the following:
‘‘(e) Whoever knowingly makes any false statement or claim
that he is, or at any time has been, a citizen or national of the
United States, with the intent to obtain on behalf of himself, or
any other person, any Federal or State benefit or service, or to
engage unlawfully in employment in the United States; or
‘‘(f) Whoever knowingly makes any false statement or claim
that he is a citizen of the United States in order to register to
vote or to vote in any Federal, State, or local election (including
an initiative, recall, or referendum)—’’.
SEC. 216. CRIMINAL PENALTY FOR VOTING BY ALIENS IN FEDERAL
ELECTION.

(a) IN GENERAL.—Title 18, United States Code, is amended
by inserting after section 610 the following:
‘‘§ 611. Voting by aliens
‘‘(a) It shall be unlawful for any alien to vote in any election
held solely or in part for the purpose of electing a candidate for
the office of President, Vice President, Presidential elector, Member
of the Senate, Member of the House of Representatives, Delegate
from the District of Columbia, or Resident Commissioner, unless—
‘‘(1) the election is held partly for some other purpose;
‘‘(2) aliens are authorized to vote for such other purpose
under a State constitution or statute or a local ordinance;
and
‘‘(3) voting for such other purpose is conducted independently of voting for a candidate for such Federal offices, in
such a manner that an alien has the opportunity to vote for

110 STAT. 3009–573

PUBLIC LAW 104–208—SEPT. 30, 1996

such other purpose, but not an opportunity to vote for a candidate for any one or more of such Federal offices.
‘‘(b) Any person who violates this section shall be fined under
this title, imprisoned not more than one year, or both.’’.
(b) CLERICAL AMENDMENT.—The table of sections at the beginning of chapter 29 of title 18, United States Code, is amended
by inserting after the item relating to section 610 the following
new item:
‘‘611. Voting by aliens.’’.
SEC. 217. CRIMINAL FORFEITURE FOR PASSPORT AND VISA RELATED
OFFENSES.

Section 982(a) of title 18, United States Code, is amended
by inserting after paragraph (5) the following new paragraph:
‘‘(6)(A) The court, in imposing sentence on a person convicted
of a violation of, or conspiracy to violate, section 1425, 1426, 1427,
1541, 1542, 1543, 1544, or 1546 of this title, or a violation of,
or conspiracy to violate, section 1028 of this title if committed
in connection with passport or visa issuance or use, shall order
that the person forfeit to the United States, regardless of any
provision of State law—
‘‘(i) any conveyance, including any vessel, vehicle, or aircraft used in the commission of a violation of, or a conspiracy
to violate, subsection (a); and
‘‘(ii) any property real or personal—
‘‘(I) that constitutes, or is derived from or is traceable
to the proceeds obtained directly or indirectly from the
commission of a violation of, or a conspiracy to violate,
subsection (a), section 274A(a)(1) or 274A(a)(2) of the
Immigration and Nationality Act, or section 1028, 1425,
1426, 1427, 1541, 1542, 1543, 1544, or 1546 of this title;
or
‘‘(II) that is used to facilitate, or is intended to be
used to facilitate, the commission of a violation of, or a
conspiracy to violate, subsection (a), section 274A(a)(1) or
274A(a)(2) of the Immigration and Nationality Act, or section 1028, 1425, 1426, 1427, 1541, 1542, 1543, 1544, or
1546 of this title.
The court, in imposing sentence on such person, shall order that
the person forfeit to the United States all property described in
this subparagraph.
‘‘(B) The criminal forfeiture of property under subparagraph
(A), including any seizure and disposition of the property and any
related administrative or judicial proceeding, shall be governed
by the provisions of section 413 of the Comprehensive Drug Abuse
Prevention and Control Act of 1970 (21 U.S.C. 853), other than
subsections (a) and (d) of such section 413.’’.
SEC. 218. CRIMINAL PENALTIES FOR INVOLUNTARY SERVITUDE.

28 USC 994 note.

(a) AMENDMENTS TO TITLE 18.—Sections 1581, 1583, 1584, and
1588 of title 18, United States Code, are amended by striking
‘‘five’’ each place it appears and inserting ‘‘10’’.
(b) REVIEW OF SENTENCING GUIDELINES.—The United States
Sentencing Commission shall ascertain whether there exists an
unwarranted disparity—

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–574

(1) between the sentences for peonage, involuntary servitude, and slave trade offenses, and the sentences for kidnapping offenses in effect on the date of the enactment of this
Act; and
(2) between the sentences for peonage, involuntary servitude, and slave trade offenses, and the sentences for alien
smuggling offenses in effect on the date of the enactment of
this Act and after the amendment made by subsection (a).
(c) AMENDMENT OF SENTENCING GUIDELINES.—
(1) IN GENERAL.—Pursuant to its authority under section
994(p) of title 28, United States Code, the United States
Sentencing Commission shall review its guidelines on sentencing for peonage, involuntary servitude, and slave trade offenses
under sections 1581 through 1588 of title 18, United States
Code, and shall amend such guidelines as necessary to—
(A) reduce or eliminate any unwarranted disparity
found under subsection (b) that exists between the sentences for peonage, involuntary servitude, and slave trade
offenses, and the sentences for kidnapping offenses and
alien smuggling offenses;
(B) ensure that the applicable guidelines for defendants
convicted of peonage, involuntary servitude, and slave trade
offenses are sufficiently stringent to deter such offenses
and adequately reflect the heinous nature of such offenses;
and
(C) ensure that the guidelines reflect the general appropriateness of enhanced sentences for defendants whose
peonage, involuntary servitude, or slave trade offenses
involve—
(i) a large number of victims;
(ii) the use or threatened use of a dangerous
weapon; or
(iii) a prolonged period of peonage or involuntary
servitude.
(2) EMERGENCY AUTHORITY TO SENTENCING COMMISSION.—
The Commission shall promulgate the guidelines or amendments provided for under this subsection as soon as practicable
in accordance with the procedure set forth in section 21(a)
of the Sentencing Act of 1987, as though the authority under
that Act had not expired.
(d) EFFECTIVE DATE.—This section and the amendments made
by this section shall apply with respect to offenses occurring on
or after the date of the enactment of this Act.
SEC. 219. ADMISSIBILITY OF VIDEOTAPED WITNESS TESTIMONY.

Section 274 (8 U.S.C. 1324) is amended by adding at the end
thereof the following new subsection:
‘‘(d) Notwithstanding any provision of the Federal Rules of
Evidence, the videotaped (or otherwise audiovisually preserved)
deposition of a witness to a violation of subsection (a) who has
been deported or otherwise expelled from the United States, or
is otherwise unable to testify, may be admitted into evidence in
an action brought for that violation if the witness was available
for cross examination and the deposition otherwise complies with
the Federal Rules of Evidence.’’.

18 USC 1581
note.

110 STAT. 3009–575

PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 220. SUBPOENA AUTHORITY IN DOCUMENT FRAUD ENFORCEMENT.

Section 274C(d)(1) (8 U.S.C. 1324c(d)(1)) is amended—
(1) by striking ‘‘and’’ at the end of subparagraph (A);
(2) by striking the period at the end of subparagraph (B)
and inserting ‘‘, and’’; and
(3) by inserting after subparagraph (B) the following:
‘‘(C) immigration officers designated by the Commissioner may compel by subpoena the attendance of witnesses
and the production of evidence at any designated place
prior to the filing of a complaint in a case under paragraph
(2).’’.

TITLE
III—INSPECTION,
APPREHENSION, DETENTION, ADJUDICATION,
AND REMOVAL OF INADMISSIBLE AND
DEPORTABLE ALIENS
Subtitle A—Revision of Procedures for
Removal of Aliens
SEC. 301. TREATING PERSONS PRESENT IN THE UNITED STATES WITHOUT AUTHORIZATION AS NOT ADMITTED.

(a) ‘‘ADMISSION’’ DEFINED.—Paragraph (13) of section 101(a)
(8 U.S.C. 1101(a)) is amended to read as follows:
‘‘(13)(A) The terms ‘admission’ and ‘admitted’ mean, with
respect to an alien, the lawful entry of the alien into the United
States after inspection and authorization by an immigration officer.
‘‘(B) An alien who is paroled under section 212(d)(5) or permitted to land temporarily as an alien crewman shall not be considered to have been admitted.
‘‘(C) An alien lawfully admitted for permanent residence in
the United States shall not be regarded as seeking an admission
into the United States for purposes of the immigration laws unless
the alien—
‘‘(i) has abandoned or relinquished that status,
‘‘(ii) has been absent from the United States for a continuous period in excess of 180 days,
‘‘(iii) has engaged in illegal activity after having departed
the United States,
‘‘(iv) has departed from the United States while under
legal process seeking removal of the alien from the United
States, including removal proceedings under this Act and extradition proceedings,
‘‘(v) has committed an offense identified in section 212(a)(2),
unless since such offense the alien has been granted relief
under section 212(h) or 240A(a), or
‘‘(vi) is attempting to enter at a time or place other than
as designated by immigration officers or has not been admitted
to the United States after inspection and authorization by
an immigration officer.’’.
(b) INADMISSIBILITY OF ALIENS PREVIOUSLY REMOVED AND
UNLAWFULLY PRESENT.—

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–576

(1) IN GENERAL.—Section 212(a) (8 U.S.C. 1182(a)) is
amended by redesignating paragraph (9) as paragraph (10)
and by inserting after paragraph (8) the following new paragraph:
‘‘(9) ALIENS PREVIOUSLY REMOVED.—
‘‘(A) CERTAIN ALIENS PREVIOUSLY REMOVED.—
‘‘(i) ARRIVING ALIENS.—Any alien who has been
ordered removed under section 235(b)(1) or at the end
of proceedings under section 240 initiated upon the
alien’s arrival in the United States and who again
seeks admission within 5 years of the date of such
removal (or within 20 years in the case of a second
or subsequent removal or at any time in the case
of an alien convicted of an aggravated felony) is
inadmissible.
‘‘(ii) OTHER ALIENS.—Any alien not described in
clause (i) who—
‘‘(I) has been ordered removed under section
240 or any other provision of law, or
‘‘(II) departed the United States while an order
of removal was outstanding,
and who seeks admission within 10 years of the date
of such alien’s departure or removal (or within 20
years of such date in the case of a second or subsequent
removal or at any time in the case of an alien convicted
of an aggravated felony) is inadmissible.
‘‘(iii) EXCEPTION.—Clauses (i) and (ii) shall not
apply to an alien seeking admission within a period
if, prior to the date of the alien’s reembarkation at
a place outside the United States or attempt to be
admitted from foreign contiguous territory, the Attorney General has consented to the alien’s reapplying
for admission.
‘‘(B) ALIENS UNLAWFULLY PRESENT.—
‘‘(i) IN GENERAL.—Any alien (other than an alien
lawfully admitted for permanent residence) who—
‘‘(I) was unlawfully present in the United
States for a period of more than 180 days but
less than 1 year, voluntarily departed the United
States (whether or not pursuant to section 244(e))
prior to the commencement of proceedings under
section 235(b)(1) or section 240, and again seeks
admission within 3 years of the date of such alien’s
departure or removal, or
‘‘(II) has been unlawfully present in the United
States for one year or more, and who again seeks
admission within 10 years of the date of such
alien’s departure or removal from the United
States,
is inadmissible.
‘‘(ii) CONSTRUCTION OF UNLAWFUL PRESENCE.—For
purposes of this paragraph, an alien is deemed to
be unlawfully present in the United States if the alien
is present in the United States after the expiration
of the period of stay authorized by the Attorney General or is present in the United States without being
admitted or paroled.

110 STAT. 3009–577

PUBLIC LAW 104–208—SEPT. 30, 1996
‘‘(iii) EXCEPTIONS.—
‘‘(I) MINORS.—No period of time in which an
alien is under 18 years of age shall be taken into
account in determining the period of unlawful presence in the United States under clause (i).
‘‘(II) ASYLEES.—No period of time in which
an alien has a bona fide application for asylum
pending under section 208 shall be taken into
account in determining the period of unlawful presence in the United States under clause (i) unless
the alien during such period was employed without
authorization in the United States.
‘‘(III) FAMILY UNITY.—No period of time in
which the alien is a beneficiary of family unity
protection pursuant to section 301 of the Immigration Act of 1990 shall be taken into account in
determining the period of unlawful presence in
the United States under clause (i).
‘‘(IV) BATTERED WOMEN AND CHILDREN.—
Clause (i) shall not apply to an alien who would
be described in paragraph (6)(A)(ii) if ‘violation
of the terms of the alien’s nonimmigrant visa’ were
substituted for ‘unlawful entry into the United
States’ in subclause (III) of that paragraph.
‘‘(iv) TOLLING FOR GOOD CAUSE.—In the case of
an alien who—
‘‘(I) has been lawfully admitted or paroled into
the United States,
‘‘(II) has filed a nonfrivolous application for
a change or extension of status before the date
of expiration of the period of stay authorized by
the Attorney General, and
‘‘(III) has not been employed without
authorization in the United States before or during
the pendency of such application,
the calculation of the period of time specified in clause
(i)(I) shall be tolled during the pendency of such
application, but not to exceed 120 days.
‘‘(v) WAIVER.—The Attorney General has sole
discretion to waive clause (i) in the case of an
immigrant who is the spouse or son or daughter of
a United States citizen or of an alien lawfully admitted
for permanent residence, if it is established to the
satisfaction of the Attorney General that the refusal
of admission to such immigrant alien would result
in extreme hardship to the citizen or lawfully resident
spouse or parent of such alien. No court shall have
jurisdiction to review a decision or action by the Attorney General regarding a waiver under this clause.
‘‘(C) ALIENS UNLAWFULLY PRESENT AFTER PREVIOUS
IMMIGRATION VIOLATIONS.—
‘‘(i) IN GENERAL.—Any alien who—
‘‘(I) has been unlawfully present in the United
States for an aggregate period of more than 1
year, or

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110 STAT. 3009–578

‘‘(II) has been ordered removed under section
235(b)(1), section 240, or any other provision of
law,
and who enters or attempts to reenter the United
States without being admitted is inadmissible.
‘‘(ii) EXCEPTION.—Clause (i) shall not apply to an
alien seeking admission more than 10 years after the
date of the alien’s last departure from the United
States if, prior to the alien’s reembarkation at a place
outside the United States or attempt to be readmitted
from a foreign contiguous territory, the Attorney General has consented to the alien’s reapplying for admission.’’.
(2) LIMITATION ON CHANGE OF STATUS.—Section 248 (8
U.S.C. 1258) is amended by inserting ‘‘and who is not inadmissible under section 212(a)(9)(B)(i) (or whose inadmissibility
under such section is waived under section 212(a)(9)(B)(v))’’
after ‘‘maintain that status’’.
(3) TREATMENT OF UNLAWFUL PRESENCE BEFORE EFFECTIVE
DATE.—In applying section 212(a)(9)(B) of the Immigration and
Nationality Act, as inserted by paragraph (1), no period before
the title III–A effective date shall be included in a period
of unlawful presence in the United States.
(c) REVISION TO GROUND OF INADMISSIBILITY FOR ILLEGAL
ENTRANTS AND IMMIGRATION VIOLATORS.—
(1) IN GENERAL.—Subparagraphs (A) and (B) of section
212(a)(6) (8 U.S.C. 1182(a)(6)) are amended to read as follows:
‘‘(A) ALIENS PRESENT WITHOUT ADMISSION OR PAROLE.—
‘‘(i) IN GENERAL.—An alien present in the United
States without being admitted or paroled, or who
arrives in the United States at any time or place
other than as designated by the Attorney General,
is inadmissible.
‘‘(ii) EXCEPTION FOR CERTAIN BATTERED WOMEN
AND CHILDREN.—Clause (i) shall not apply to an alien
who demonstrates that—
‘‘(I) the alien qualifies for immigrant status
under subparagraph (A)(iii), (A)(iv), (B)(ii), or
(B)(iii) of section 204(a)(1),
‘‘(II)(a) the alien has been battered or subjected to extreme cruelty by a spouse or parent,
or by a member of the spouse’s or parent’s family
residing in the same household as the alien and
the spouse or parent consented or acquiesced to
such battery or cruelty, or (b) the alien’s child
has been battered or subjected to extreme cruelty
by a spouse or parent of the alien (without the
active participation of the alien in the battery or
cruelty) or by a member of the spouse’s or parent’s
family residing in the same household as the alien
when the spouse or parent consented to or
acquiesced in such battery or cruelty and the alien
did not actively participate in such battery or cruelty, and

8 USC 1182 note.

110 STAT. 3009–579

8 USC 1182 note.

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(III) there was a substantial connection
between the battery or cruelty described in subclause (I) or (II) and the alien’s unlawful entry
into the United States.
‘‘(B) FAILURE TO ATTEND REMOVAL PROCEEDING.—Any
alien who without reasonable cause fails or refuses to
attend or remain in attendance at a proceeding to determine the alien’s inadmissibility or deportability and who
seeks admission to the United States within 5 years of
such alien’s subsequent departure or removal is inadmissible. ’’.
(2) TRANSITION FOR BATTERED SPOUSE OR CHILD PROVISION.—The requirements of subclauses (II) and (III) of section
212(a)(6)(A)(ii) of the Immigration and Nationality Act, as
inserted by paragraph (1), shall not apply to an alien who
demonstrates that the alien first arrived in the United States
before the title III–A effective date (described in section 309(a)
of this division).
(d) ADJUSTMENT IN GROUNDS FOR DEPORTATION.—Section 241
(8 U.S.C. 1251), before redesignation as section 237 by section
305(a)(2) of this division, is amended—
(1) in the matter before paragraph (1) of subsection (a),
by striking ‘‘in the United States’’ and inserting ‘‘in and admitted to the United States’’;
(2) in subsection (a)(1), by striking ‘‘EXCLUDABLE’’ each
place it appears and inserting ‘‘INADMISSIBLE’’;
(3) in subsection (a)(1)(A), by striking ‘‘excludable’’ and
inserting ‘‘inadmissible’’; and
(4) by amending subparagraph (B) of subsection (a)(1) to
read as follows:
‘‘(B) PRESENT IN VIOLATION OF LAW.—Any alien who
is present in the United States in violation of this Act
or any other law of the United States is deportable.
SEC. 302. INSPECTION OF ALIENS; EXPEDITED REMOVAL OF INADMISSIBLE ARRIVING ALIENS; REFERRAL FOR HEARING
(REVISED SECTION 235).

(a) IN GENERAL.—Section 235 (8 U.S.C. 1225) is amended to
read as follows:
‘‘INSPECTION

BY IMMIGRATION OFFICERS; EXPEDITED REMOVAL OF
INADMISSIBLE ARRIVING ALIENS; REFERRAL FOR HEARING

‘‘SEC. 235. (a) INSPECTION.—
‘‘(1) ALIENS TREATED AS APPLICANTS FOR ADMISSION.—An
alien present in the United States who has not been admitted
or who arrives in the United States (whether or not at a
designated port of arrival and including an alien who is brought
to the United States after having been interdicted in international or United States waters) shall be deemed for purposes
of this Act an applicant for admission.
‘‘(2) STOWAWAYS.—An arriving alien who is a stowaway
is not eligible to apply for admission or to be admitted and
shall be ordered removed upon inspection by an immigration
officer. Upon such inspection if the alien indicates an intention
to apply for asylum under section 208 or a fear of persecution,
the officer shall refer the alien for an interview under subsection (b)(1)(B). A stowaway may apply for asylum only if

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–580

the stowaway is found to have a credible fear of persecution
under subsection (b)(1)(B). In no case may a stowaway be
considered an applicant for admission or eligible for a hearing
under section 240.
‘‘(3) INSPECTION.—All aliens (including alien crewmen) who
are applicants for admission or otherwise seeking admission
or readmission to or transit through the United States shall
be inspected by immigration officers.
‘‘(4) WITHDRAWAL OF APPLICATION FOR ADMISSION.—An
alien applying for admission may, in the discretion of the Attorney General and at any time, be permitted to withdraw the
application for admission and depart immediately from the
United States.
‘‘(5) STATEMENTS.—An applicant for admission may be
required to state under oath any information sought by an
immigration officer regarding the purposes and intentions of
the applicant in seeking admission to the United States, including the applicant’s intended length of stay and whether the
applicant intends to remain permanently or become a United
States citizen, and whether the applicant is inadmissible.
‘‘(b) INSPECTION OF APPLICANTS FOR ADMISSION.—
‘‘(1) INSPECTION OF ALIENS ARRIVING IN THE UNITED STATES
AND CERTAIN OTHER ALIENS WHO HAVE NOT BEEN ADMITTED
OR PAROLED.—
‘‘(A) SCREENING.—
‘‘(i) IN GENERAL.—If an immigration officer deter-

mines that an alien (other than an alien described
in subparagraph (F)) who is arriving in the United
States or is described in clause (iii) is inadmissible
under section 212(a)(6)(C) or 212(a)(7), the officer shall
order the alien removed from the United States without
further hearing or review unless the alien indicates
either an intention to apply for asylum under section
208 or a fear of persecution.
‘‘(ii) CLAIMS FOR ASYLUM.—If an immigration officer determines that an alien (other than an alien
described in subparagraph (F)) who is arriving in the
United States or is described in clause (iii) is inadmissible under section 212(a)(6)(C) or 212(a)(7) and the
alien indicates either an intention to apply for asylum
under section 208 or a fear of persecution, the officer
shall refer the alien for an interview by an asylum
officer under subparagraph (B).
‘‘(iii) APPLICATION TO CERTAIN OTHER ALIENS.—
‘‘(I) IN GENERAL.—The Attorney General may
apply clauses (i) and (ii) of this subparagraph to
any or all aliens described in subclause (II) as
designated by the Attorney General. Such designation shall be in the sole and unreviewable discretion of the Attorney General and may be modified
at any time.
‘‘(II) ALIENS DESCRIBED.—An alien described
in this clause is an alien who is not described
in subparagraph (F), who has not been admitted
or paroled into the United States, and who has
not affirmatively shown, to the satisfaction of an

110 STAT. 3009–581

PUBLIC LAW 104–208—SEPT. 30, 1996
immigration officer, that the alien has been physically present in the United States continuously
for the 2-year period immediately prior to the date
of the determination of inadmissibility under this
subparagraph.
‘‘(B) ASYLUM INTERVIEWS.—
‘‘(i) CONDUCT BY ASYLUM OFFICERS.—An asylum
officer shall conduct interviews of aliens referred under
subparagraph (A)(ii), either at a port of entry or at
such other place designated by the Attorney General.
‘‘(ii) REFERRAL OF CERTAIN ALIENS.—If the officer
determines at the time of the interview that an alien
has a credible fear of persecution (within the meaning
of clause (v)), the alien shall be detained for further
consideration of the application for asylum.
‘‘(iii) REMOVAL WITHOUT FURTHER REVIEW IF NO
CREDIBLE FEAR OF PERSECUTION.—
‘‘(I) IN GENERAL.—Subject to subclause (III),
if the officer determines that an alien does not
have a credible fear of persecution, the officer shall
order the alien removed from the United States
without further hearing or review.
‘‘(II) RECORD OF DETERMINATION.—The officer
shall prepare a written record of a determination
under subclause (I). Such record shall include a
summary of the material facts as stated by the
applicant, such additional facts (if any) relied upon
by the officer, and the officer’s analysis of why,
in the light of such facts, the alien has not established a credible fear of persecution. A copy of
the officer’s interview notes shall be attached to
the written summary.
‘‘(III) REVIEW OF DETERMINATION.—The Attorney General shall provide by regulation and upon
the alien’s request for prompt review by an
immigration judge of a determination under subclause (I) that the alien does not have a credible
fear of persecution. Such review shall include an
opportunity for the alien to be heard and questioned by the immigration judge, either in person
or by telephonic or video connection. Review shall
be concluded as expeditiously as possible, to the
maximum extent practicable within 24 hours, but
in no case later than 7 days after the date of
the determination under subclause (I).
‘‘(IV) MANDATORY DETENTION.—Any alien subject to the procedures under this clause shall be
detained pending a final determination of credible
fear of persecution and, if found not to have such
a fear, until removed.
‘‘(iv) INFORMATION ABOUT INTERVIEWS.—The Attorney General shall provide information concerning the
asylum interview described in this subparagraph to
aliens who may be eligible. An alien who is eligible
for such interview may consult with a person or persons of the alien’s choosing prior to the interview or
any review thereof, according to regulations prescribed

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110 STAT. 3009–582

by the Attorney General. Such consultation shall be
at no expense to the Government and shall not
unreasonably delay the process.
‘‘(v) CREDIBLE FEAR OF PERSECUTION DEFINED.—
For purposes of this subparagraph, the term ‘credible
fear of persecution’ means that there is a significant
possibility, taking into account the credibility of the
statements made by the alien in support of the alien’s
claim and such other facts as are known to the officer,
that the alien could establish eligibility for asylum
under section 208.
‘‘(C) LIMITATION ON ADMINISTRATIVE REVIEW.—Except
as provided in subparagraph (B)(iii)(III), a removal order
entered in accordance with subparagraph (A)(i) or (B)(iii)(I)
is not subject to administrative appeal, except that the
Attorney General shall provide by regulation for prompt
review of such an order under subparagraph (A)(i) against
an alien who claims under oath, or as permitted under
penalty of perjury under section 1746 of title 28, United
States Code, after having been warned of the penalties
for falsely making such claim under such conditions, to
have been lawfully admitted for permanent residence, to
have been admitted as a refugee under section 207, or
to have been granted asylum under section 208.
‘‘(D) LIMIT ON COLLATERAL ATTACKS.—In any action
brought against an alien under section 275(a) or section
276, the court shall not have jurisdiction to hear any claim
attacking the validity of an order of removal entered under
subparagraph (A)(i) or (B)(iii).
‘‘(E) ASYLUM OFFICER DEFINED.—As used in this paragraph, the term ‘asylum officer’ means an immigration
officer who—
‘‘(i) has had professional training in country conditions, asylum law, and interview techniques comparable to that provided to full-time adjudicators of
applications under section 208, and
‘‘(ii) is supervised by an officer who meets the
condition described in clause (i) and has had substantial experience adjudicating asylum applications.
‘‘(F) EXCEPTION.—Subparagraph (A) shall not apply to
an alien who is a native or citizen of a country in the
Western Hemisphere with whose government the United
States does not have full diplomatic relations and who
arrives by aircraft at a port of entry.
‘‘(2) INSPECTION OF OTHER ALIENS.—
‘‘(A) IN GENERAL.—Subject to subparagraphs (B) and
(C), in the case of an alien who is an applicant for admission, if the examining immigration officer determines that
an alien seeking admission is not clearly and beyond a
doubt entitled to be admitted, the alien shall be detained
for a proceeding under section 240.
‘‘(B) EXCEPTION.—Subparagraph (A) shall not apply
to an alien—
‘‘(i) who is a crewman,
‘‘(ii) to whom paragraph (1) applies, or
‘‘(iii) who is a stowaway.

110 STAT. 3009–583

PUBLIC LAW 104–208—SEPT. 30, 1996
‘‘(C) TREATMENT OF ALIENS ARRIVING FROM CONTIGUOUS
TERRITORY.—In the case of an alien described in subpara-

graph (A) who is arriving on land (whether or not at
a designated port of arrival) from a foreign territory contiguous to the United States, the Attorney General may return
the alien to that territory pending a proceeding under
section 240.
‘‘(3) CHALLENGE OF DECISION.—The decision of the examining immigration officer, if favorable to the admission of any
alien, shall be subject to challenge by any other immigration
officer and such challenge shall operate to take the alien whose
privilege to be admitted is so challenged, before an immigration
judge for a proceeding under section 240.
‘‘(c) REMOVAL OF ALIENS INADMISSIBLE ON SECURITY AND
RELATED GROUNDS.—
‘‘(1) REMOVAL WITHOUT FURTHER HEARING.—If an immigration officer or an immigration judge suspects that an arriving
alien may be inadmissible under subparagraph (A) (other than
clause (ii)), (B), or (C) of section 212(a)(3), the officer or judge
shall—
‘‘(A) order the alien removed, subject to review under
paragraph (2);
‘‘(B) report the order of removal to the Attorney General; and
‘‘(C) not conduct any further inquiry or hearing until
ordered by the Attorney General.
‘‘(2) REVIEW OF ORDER.—(A) The Attorney General shall
review orders issued under paragraph (1).
‘‘(B) If the Attorney General—
‘‘(i) is satisfied on the basis of confidential information
that the alien is inadmissible under subparagraph (A)
(other than clause (ii)), (B), or (C) of section 212(a)(3),
and
‘‘(ii) after consulting with appropriate security agencies
of the United States Government, concludes that disclosure
of the information would be prejudicial to the public
interest, safety, or security,
the Attorney General may order the alien removed without
further inquiry or hearing by an immigration judge.
‘‘(C) If the Attorney General does not order the removal
of the alien under subparagraph (B), the Attorney General
shall specify the further inquiry or hearing that shall be conducted in the case.
‘‘(3) SUBMISSION OF STATEMENT AND INFORMATION.—The
alien or the alien’s representative may submit a written statement and additional information for consideration by the Attorney General.
‘‘(d) AUTHORITY RELATING TO INSPECTIONS.—
‘‘(1) AUTHORITY TO SEARCH CONVEYANCES.—Immigration
officers are authorized to board and search any vessel, aircraft,
railway car, or other conveyance or vehicle in which they believe
aliens are being brought into the United States.
‘‘(2) AUTHORITY TO ORDER DETENTION AND DELIVERY OF
ARRIVING ALIENS.—Immigration officers are authorized to order
an owner, agent, master, commanding officer, person in charge,
purser, or consignee of a vessel or aircraft bringing an alien
(except an alien crewmember) to the United States—

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110 STAT. 3009–584

‘‘(A) to detain the alien on the vessel or at the airport
of arrival, and
‘‘(B) to deliver the alien to an immigration officer for
inspection or to a medical officer for examination.
‘‘(3) ADMINISTRATION OF OATH AND CONSIDERATION OF EVIDENCE.—The Attorney General and any immigration officer
shall have power to administer oaths and to take and consider
evidence of or from any person touching the privilege of any
alien or person he believes or suspects to be an alien to enter,
reenter, transit through, or reside in the United States or
concerning any matter which is material and relevant to the
enforcement of this Act and the administration of the Service.
‘‘(4) SUBPOENA AUTHORITY.—(A) The Attorney General and
any immigration officer shall have power to require by subpoena
the attendance and testimony of witnesses before immigration
officers and the production of books, papers, and documents
relating to the privilege of any person to enter, reenter, reside
in, or pass through the United States or concerning any matter
which is material and relevant to the enforcement of this Act
and the administration of the Service, and to that end may
invoke the aid of any court of the United States.
‘‘(B) Any United States district court within the jurisdiction
of which investigations or inquiries are being conducted by
an immigration officer may, in the event of neglect or refusal
to respond to a subpoena issued under this paragraph or refusal
to testify before an immigration officer, issue an order requiring
such persons to appear before an immigration officer, produce
books, papers, and documents if demanded, and testify, and
any failure to obey such order of the court may be punished
by the court as a contempt thereof.’’.
(b) GAO STUDY ON OPERATION OF EXPEDITED REMOVAL PROCEDURES.—
(1) STUDY.—The Comptroller General shall conduct a study
on the implementation of the expedited removal procedures
under section 235(b)(1) of the Immigration and Nationality
Act, as amended by subsection (a). The study shall examine—
(A) the effectiveness of such procedures in deterring
illegal entry,
(B) the detention and adjudication resources saved as
a result of the procedures,
(C) the administrative and other costs expended to
comply with the provision,
(D) the effectiveness of such procedures in processing
asylum claims by undocumented aliens who assert a fear
of persecution, including the accuracy of credible fear determinations, and
(E) the cooperation of other countries and air carriers
in accepting and returning aliens removed under such
procedures.
(2) REPORT.—By not later than 18 months after the date
of the enactment of this Act, the Comptroller General shall
submit to the Committees on the Judiciary of the House of
Representatives and the Senate a report on the study conducted
under paragraph (1).

8 USC 1225 note.

110 STAT. 3009–585

PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 303. APPREHENSION AND DETENTION OF ALIENS (REVISED SECTION 236).

(a) IN GENERAL.—Section 236 (8 U.S.C. 1226) is amended to
read as follows:
‘‘APPREHENSION

AND DETENTION OF ALIENS

‘‘SEC. 236. (a) ARREST, DETENTION, AND RELEASE.—On a warrant issued by the Attorney General, an alien may be arrested
and detained pending a decision on whether the alien is to be
removed from the United States. Except as provided in subsection
(c) and pending such decision, the Attorney General—
‘‘(1) may continue to detain the arrested alien; and
‘‘(2) may release the alien on—
‘‘(A) bond of at least $1,500 with security approved
by, and containing conditions prescribed by, the Attorney
General; or
‘‘(B) conditional parole; but
‘‘(3) may not provide the alien with work authorization
(including an ‘employment authorized’ endorsement or other
appropriate work permit), unless the alien is lawfully admitted
for permanent residence or otherwise would (without regard
to removal proceedings) be provided such authorization.
‘‘(b) REVOCATION OF BOND OR PAROLE.—The Attorney General
at any time may revoke a bond or parole authorized under subsection (a), rearrest the alien under the original warrant, and
detain the alien.
‘‘(c) DETENTION OF CRIMINAL ALIENS.—
‘‘(1) CUSTODY.—The Attorney General shall take into custody any alien who—
‘‘(A) is inadmissible by reason of having committed
any offense covered in section 212(a)(2),
‘‘(B) is deportable by reason of having committed any
offense covered in section 237(a)(2)(A)(ii), (A)(iii), (B), (C),
or (D),
‘‘(C) is deportable under section 237(a)(2)(A)(i) on the
basis of an offense for which the alien has been sentence
to a term of imprisonment of at least 1 year, or
‘‘(D) is inadmissible under section 212(a)(3)(B) or
deportable under section 237(a)(4)(B),
when the alien is released, without regard to whether the
alien is released on parole, supervised release, or probation,
and without regard to whether the alien may be arrested or
imprisoned again for the same offense.
‘‘(2) RELEASE.—The Attorney General may release an alien
described in paragraph (1) only if the Attorney General decides
pursuant to section 3521 of title 18, United States Code, that
release of the alien from custody is necessary to provide protection to a witness, a potential witness, a person cooperating
with an investigation into major criminal activity, or an immediate family member or close associate of a witness, potential
witness, or person cooperating with such an investigation, and
the alien satisfies the Attorney General that the alien will
not pose a danger to the safety of other persons or of property
and is likely to appear for any scheduled proceeding. A decision
relating to such release shall take place in accordance with

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–586

a procedure that considers the severity of the offense committed
by the alien.
‘‘(d) IDENTIFICATION OF CRIMINAL ALIENS.—(1) The Attorney
General shall devise and implement a system—
‘‘(A) to make available, daily (on a 24-hour basis), to Federal, State, and local authorities the investigative resources
of the Service to determine whether individuals arrested by
such authorities for aggravated felonies are aliens;
‘‘(B) to designate and train officers and employees of the
Service to serve as a liaison to Federal, State, and local law
enforcement and correctional agencies and courts with respect
to the arrest, conviction, and release of any alien charged
with an aggravated felony; and
‘‘(C) which uses computer resources to maintain a current
record of aliens who have been convicted of an aggravated
felony, and indicates those who have been removed.
‘‘(2) The record under paragraph (1)(C) shall be made available—
‘‘(A) to inspectors at ports of entry and to border patrol
agents at sector headquarters for purposes of immediate identification of any alien who was previously ordered removed and
is seeking to reenter the United States, and
‘‘(B) to officials of the Department of State for use in
its automated visa lookout system.
‘‘(3) Upon the request of the governor or chief executive officer
of any State, the Service shall provide assistance to State courts
in the identification of aliens unlawfully present in the United
States pending criminal prosecution.
‘‘(e) JUDICIAL REVIEW.—The Attorney General’s discretionary
judgment regarding the application of this section shall not be
subject to review. No court may set aside any action or decision
by the Attorney General under this section regarding the detention
or release of any alien or the grant, revocation, or denial of bond
or parole.’’.
(b) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendment made by subsection (a)
shall become effective on the title III–A effective date.
(2) NOTIFICATION REGARDING CUSTODY.—If the Attorney
General, not later than 10 days after the date of the enactment
of this Act, notifies in writing the Committees on the Judiciary
of the House of Representatives and the Senate that there
is insufficient detention space and Immigration and Naturalization Service personnel available to carry out section 236(c)
of the Immigration and Nationality Act, as amended by subsection (a), or the amendments made by section 440(c) of Public
Law 104–132, the provisions in paragraph (3) shall be in effect
for a 1-year period beginning on the date of such notification,
instead of such section or such amendments. The Attorney
General may extend such 1-year period for an additional year
if the Attorney General provides the same notice not later
than 10 days before the end of the first 1-year period. After
the end of such 1-year or 2-year periods, the provisions of
such section 236(c) shall apply to individuals released after
such periods.
(3) TRANSITION PERIOD CUSTODY RULES.—

8 USC 1226 note.

110 STAT. 3009–587

PUBLIC LAW 104–208—SEPT. 30, 1996
(A) IN GENERAL.—During the period in which this paragraph is in effect pursuant to paragraph (2), the Attorney
General shall take into custody any alien who—
(i) has been convicted of an aggravated felony (as
defined under section 101(a)(43) of the Immigration
and Nationality Act, as amended by section 321 of
this division),
(ii) is inadmissible by reason of having committed
any offense covered in section 212(a)(2) of such Act,
(iii) is deportable by reason of having committed
any offense covered in section 241(a)(2)(A)(ii), (A)(iii),
(B), (C), or (D) of such Act (before redesignation under
this subtitle), or
(iv) is inadmissible under section 212(a)(3)(B) of
such Act or deportable under section 241(a)(4)(B) of
such Act (before redesignation under this subtitle),
when the alien is released, without regard to whether
the alien is released on parole, supervised release, or probation, and without regard to whether the alien may be
arrested or imprisoned again for the same offense.
(B) RELEASE.—The Attorney General may release the
alien only if the alien is an alien described in subparagraph
(A)(ii) or (A)(iii) and—
(i) the alien was lawfully admitted to the United
States and satisfies the Attorney General that the
alien will not pose a danger to the safety of other
persons or of property and is likely to appear for any
scheduled proceeding, or
(ii) the alien was not lawfully admitted to the
United States, cannot be removed because the designated country of removal will not accept the alien,
and satisfies the Attorney General that the alien will
not pose a danger to the safety of other persons or
of property and is likely to appear for any scheduled
proceeding.

SEC. 304. REMOVAL PROCEEDINGS; CANCELLATION OF REMOVAL AND
ADJUSTMENT OF STATUS; VOLUNTARY DEPARTURE
(REVISED AND NEW SECTIONS 239 TO 240C).
8 USC 1224.

(a) IN GENERAL.—Chapter 4 of title II is amended—
(1) by redesignating section 239 (8 U.S.C. 1229) as section
234 and by moving such section to immediately follow section
233;
(2) by redesignating section 240 (8 U.S.C. 1230) as section
240C; and
(3) by inserting after section 238 the following new sections:
‘‘INITIATION

8 USC 1229.

OF REMOVAL PROCEEDINGS

‘‘SEC. 239. (a) NOTICE TO APPEAR.—
‘‘(1) IN GENERAL.—In removal proceedings under section
240, written notice (in this section referred to as a ‘notice
to appear’) shall be given in person to the alien (or, if personal
service is not practicable, through service by mail to the alien
or to the alien’s counsel of record, if any) specifying the following:
‘‘(A) The nature of the proceedings against the alien.

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110 STAT. 3009–588

‘‘(B) The legal authority under which the proceedings
are conducted.
‘‘(C) The acts or conduct alleged to be in violation
of law.
‘‘(D) The charges against the alien and the statutory
provisions alleged to have been violated.
‘‘(E) The alien may be represented by counsel and
the alien will be provided (i) a period of time to secure
counsel under subsection (b)(1) and (ii) a current list of
counsel prepared under subsection (b)(2).
‘‘(F)(i) The requirement that the alien must immediately provide (or have provided) the Attorney General
with a written record of an address and telephone number
(if any) at which the alien may be contacted respecting
proceedings under section 240.
‘‘(ii) The requirement that the alien must provide the
Attorney General immediately with a written record of
any change of the alien’s address or telephone number.
‘‘(iii) The consequences under section 240(b)(5) of failure to provide address and telephone information pursuant
to this subparagraph.
‘‘(G)(i) The time and place at which the proceedings
will be held.
‘‘(ii) The consequences under section 240(b)(5) of the
failure, except under exceptional circumstances, to appear
at such proceedings.
‘‘(2) NOTICE OF CHANGE IN TIME OR PLACE OF PROCEEDINGS.—
‘‘(A) IN GENERAL.—In removal proceedings under section 240, in the case of any change or postponement in
the time and place of such proceedings, subject to subparagraph (B) a written notice shall be given in person to
the alien (or, if personal service is not practicable, through
service by mail to the alien or to the alien’s counsel of
record, if any) specifying—
‘‘(i) the new time or place of the proceedings, and
‘‘(ii) the consequences under section 240(b)(5) of
failing, except under exceptional circumstances, to
attend such proceedings.
‘‘(B) EXCEPTION.—In the case of an alien not in detention, a written notice shall not be required under this
paragraph if the alien has failed to provide the address
required under paragraph (1)(F).
‘‘(3) CENTRAL ADDRESS FILES.—The Attorney General shall
create a system to record and preserve on a timely basis notices
of addresses and telephone numbers (and changes) provided
under paragraph (1)(F).
‘‘(b) SECURING OF COUNSEL.—
‘‘(1) IN GENERAL.—In order that an alien be permitted
the opportunity to secure counsel before the first hearing date
in proceedings under section 240, the hearing date shall not
be scheduled earlier than 10 days after the service of the
notice to appear, unless the alien requests in writing an earlier
hearing date.
‘‘(2) CURRENT LISTS OF COUNSEL.—The Attorney General
shall provide for lists (updated not less often than quarterly)
of persons who have indicated their availability to represent

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PUBLIC LAW 104–208—SEPT. 30, 1996

pro bono aliens in proceedings under section 240. Such lists
shall be provided under subsection (a)(1)(E) and otherwise made
generally available.
‘‘(3) RULE OF CONSTRUCTION.—Nothing in this subsection
may be construed to prevent the Attorney General from
proceeding against an alien pursuant to section 240 if the
time period described in paragraph (1) has elapsed and the
alien has failed to secure counsel.
‘‘(c) SERVICE BY MAIL.—Service by mail under this section shall
be sufficient if there is proof of attempted delivery to the last
address provided by the alien in accordance with subsection
(a)(1)(F).
‘‘(d) PROMPT INITIATION OF REMOVAL.—(1) In the case of an
alien who is convicted of an offense which makes the alien deportable, the Attorney General shall begin any removal proceeding
as expeditiously as possible after the date of the conviction.
‘‘(2) Nothing in this subsection shall be construed to create
any substantive or procedural right or benefit that is legally enforceable by any party against the United States or its agencies or
officers or any other person.
‘‘REMOVAL
8 USC 1229a.

PROCEEDINGS

‘‘SEC. 240. (a) PROCEEDING.—
‘‘(1) IN GENERAL.—An immigration judge shall conduct
proceedings for deciding the inadmissibility or deportability
of an alien.
‘‘(2) CHARGES.—An alien placed in proceedings under this
section may be charged with any applicable ground of inadmissibility under section 212(a) or any applicable ground of deportability under section 237(a).
‘‘(3) EXCLUSIVE PROCEDURES.—Unless otherwise specified
in this Act, a proceeding under this section shall be the sole
and exclusive procedure for determining whether an alien may
be admitted to the United States or, if the alien has been
so admitted, removed from the United States. Nothing in this
section shall affect proceedings conducted pursuant to section
238.
‘‘(b) CONDUCT OF PROCEEDING.—
‘‘(1) AUTHORITY OF IMMIGRATION JUDGE.—The immigration
judge shall administer oaths, receive evidence, and interrogate,
examine, and cross-examine the alien and any witnesses. The
immigration judge may issue subpoenas for the attendance
of witnesses and presentation of evidence. The immigration
judge shall have authority (under regulations prescribed by
the Attorney General) to sanction by civil money penalty any
action (or inaction) in contempt of the judge’s proper exercise
of authority under this Act.
‘‘(2) FORM OF PROCEEDING.—
‘‘(A) IN GENERAL.—The proceeding may take place—
‘‘(i) in person,
‘‘(ii) where agreed to by the parties, in the absence
of the alien,
‘‘(iii) through video conference, or
‘‘(iv) subject to subparagraph (B), through telephone conference.
‘‘(B) CONSENT REQUIRED IN CERTAIN CASES.—An evidentiary hearing on the merits may only be conducted

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–590

through a telephone conference with the consent of the
alien involved after the alien has been advised of the right
to proceed in person or through video conference.
‘‘(3) PRESENCE OF ALIEN.—If it is impracticable by reason
of an alien’s mental incompetency for the alien to be present
at the proceeding, the Attorney General shall prescribe safeguards to protect the rights and privileges of the alien.
‘‘(4) ALIENS RIGHTS IN PROCEEDING.—In proceedings under
this section, under regulations of the Attorney General—
‘‘(A) the alien shall have the privilege of being represented, at no expense to the Government, by counsel
of the alien’s choosing who is authorized to practice in
such proceedings,
‘‘(B) the alien shall have a reasonable opportunity to
examine the evidence against the alien, to present evidence
on the alien’s own behalf, and to cross-examine witnesses
presented by the Government but these rights shall not
entitle the alien to examine such national security information as the Government may proffer in opposition to the
alien’s admission to the United States or to an application
by the alien for discretionary relief under this Act, and
‘‘(C) a complete record shall be kept of all testimony
and evidence produced at the proceeding.
‘‘(5) CONSEQUENCES OF FAILURE TO APPEAR.—
‘‘(A) IN GENERAL.—Any alien who, after written notice
required under paragraph (1) or (2) of section 239(a) has
been provided to the alien or the alien’s counsel of record,
does not attend a proceeding under this section, shall be
ordered removed in absentia if the Service establishes by
clear, unequivocal, and convincing evidence that the written notice was so provided and that the alien is removable
(as defined in subsection (e)(2)). The written notice by
the Attorney General shall be considered sufficient for purposes of this subparagraph if provided at the most recent
address provided under section 239(a)(1)(F).
‘‘(B) NO NOTICE IF FAILURE TO PROVIDE ADDRESS
INFORMATION.—No written notice shall be required under
subparagraph (A) if the alien has failed to provide the
address required under section 239(a)(1)(F).
‘‘(C) RESCISSION OF ORDER.—Such an order may be
rescinded only—
‘‘(i) upon a motion to reopen filed within 180 days
after the date of the order of removal if the alien
demonstrates that the failure to appear was because
of exceptional circumstances (as defined in subsection
(e)(1)), or
‘‘(ii) upon a motion to reopen filed at any time
if the alien demonstrates that the alien did not receive
notice in accordance with paragraph (1) or (2) of section
239(a) or the alien demonstrates that the alien was
in Federal or State custody and the failure to appear
was through no fault of the alien.
The filing of the motion to reopen described in clause
(i) or (ii) shall stay the removal of the alien pending disposition of the motion by the immigration judge.
‘‘(D) EFFECT ON JUDICIAL REVIEW.—Any petition for
review under section 242 of an order entered in absentia

110 STAT. 3009–591

PUBLIC LAW 104–208—SEPT. 30, 1996

under this paragraph shall (except in cases described in
section 242(b)(5)) be confined to (i) the validity of the notice
provided to the alien, (ii) the reasons for the alien’s not
attending the proceeding, and (iii) whether or not the alien
is removable.
‘‘(E) ADDITIONAL APPLICATION TO CERTAIN ALIENS IN
CONTIGUOUS TERRITORY.—The preceding provisions of this
paragraph shall apply to all aliens placed in proceedings
under this section, including any alien who remains in
a contiguous foreign territory pursuant to section
235(b)(2)(C).
‘‘(6) TREATMENT OF FRIVOLOUS BEHAVIOR.—The Attorney
General shall, by regulation—
‘‘(A) define in a proceeding before an immigration judge
or before an appellate administrative body under this title,
frivolous behavior for which attorneys may be sanctioned,
‘‘(B) specify the circumstances under which an administrative appeal of a decision or ruling will be considered
frivolous and will be summarily dismissed, and
‘‘(C) impose appropriate sanctions (which may include
suspension and disbarment) in the case of frivolous behavior.
Nothing in this paragraph shall be construed as limiting the authority of the Attorney General to take actions with respect to inappropriate behavior.
‘‘(7) LIMITATION ON DISCRETIONARY RELIEF FOR FAILURE
TO APPEAR.—Any alien against whom a final order of removal
is entered in absentia under this subsection and who, at the
time of the notice described in paragraph (1) or (2) of section
239(a), was provided oral notice, either in the alien’s native
language or in another language the alien understands, of
the time and place of the proceedings and of the consequences
under this paragraph of failing, other than because of exceptional circumstances (as defined in subsection (e)(1)) to attend
a proceeding under this section, shall not be eligible for relief
under section 240A, 240B, 245, 248, or 249 for a period of
10 years after the date of the entry of the final order of
removal.
‘‘(c) DECISION AND BURDEN OF PROOF.—
‘‘(1) DECISION.—
‘‘(A) IN GENERAL.—At the conclusion of the proceeding
the immigration judge shall decide whether an alien is
removable from the United States. The determination of
the immigration judge shall be based only on the evidence
produced at the hearing.
‘‘(B) CERTAIN MEDICAL DECISIONS.—If a medical officer
or civil surgeon or board of medical officers has certified
under section 232(b) that an alien has a disease, illness,
or addiction which would make the alien inadmissible
under paragraph (1) of section 212(a), the decision of the
immigration judge shall be based solely upon such certification.
‘‘(2) BURDEN ON ALIEN.—In the proceeding the alien has
the burden of establishing—
‘‘(A) if the alien is an applicant for admission, that
the alien is clearly and beyond doubt entitled to be admitted
and is not inadmissible under section 212; or

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–592

‘‘(B) by clear and convincing evidence, that the alien
is lawfully present in the United States pursuant to a
prior admission.
In meeting the burden of proof under subparagraph (B), the
alien shall have access to the alien’s visa or other entry document, if any, and any other records and documents, not considered by the Attorney General to be confidential, pertaining
to the alien’s admission or presence in the United States.
‘‘(3) BURDEN ON SERVICE IN CASES OF DEPORTABLE ALIENS.—
‘‘(A) IN GENERAL.—In the proceeding the Service has
the burden of establishing by clear and convincing evidence
that, in the case of an alien who has been admitted to
the United States, the alien is deportable. No decision
on deportability shall be valid unless it is based upon
reasonable, substantial, and probative evidence.
‘‘(B) PROOF OF CONVICTIONS.—In any proceeding under
this Act, any of the following documents or records (or
a certified copy of such an official document or record)
shall constitute proof of a criminal conviction:
‘‘(i) An official record of judgment and conviction.
‘‘(ii) An official record of plea, verdict, and sentence.
‘‘(iii) A docket entry from court records that
indicates the existence of the conviction.
‘‘(iv) Official minutes of a court proceeding or a
transcript of a court hearing in which the court takes
notice of the existence of the conviction.
‘‘(v) An abstract of a record of conviction prepared
by the court in which the conviction was entered, or
by a State official associated with the State’s repository
of criminal justice records, that indicates the charge
or section of law violated, the disposition of the case,
the existence and date of conviction, and the sentence.
‘‘(vi) Any document or record prepared by, or under
the direction of, the court in which the conviction was
entered that indicates the existence of a conviction.
‘‘(vii) Any document or record attesting to the
conviction that is maintained by an official of a State
or Federal penal institution, which is the basis for
that institution’s authority to assume custody of the
individual named in the record.
‘‘(C) ELECTRONIC RECORDS.—In any proceeding under
this Act, any record of conviction or abstract that has
been submitted by electronic means to the Service from
a State or court shall be admissible as evidence to prove
a criminal conviction if it is—
‘‘(i) certified by a State official associated with
the State’s repository of criminal justice records as
an official record from its repository or by a court
official from the court in which the conviction was
entered as an official record from its repository, and
‘‘(ii) certified in writing by a Service official as
having been received electronically from the State’s
record repository or the court’s record repository.
A certification under clause (i) may be by means of a
computer-generated signature and statement of authenticity.

110 STAT. 3009–593

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(4) NOTICE.—If the immigration judge decides that the
alien is removable and orders the alien to be removed, the
judge shall inform the alien of the right to appeal that decision
and of the consequences for failure to depart under the order
of removal, including civil and criminal penalties.
‘‘(5) MOTIONS TO RECONSIDER.—
‘‘(A) IN GENERAL.—The alien may file one motion to
reconsider a decision that the alien is removable from
the United States.
‘‘(B) DEADLINE.—The motion must be filed within 30
days of the date of entry of a final administrative order
of removal.
‘‘(C) CONTENTS.—The motion shall specify the errors
of law or fact in the previous order and shall be supported
by pertinent authority.
‘‘(6) MOTIONS TO REOPEN.—
‘‘(A) IN GENERAL.—An alien may file one motion to
reopen proceedings under this section.
‘‘(B) CONTENTS.—The motion to reopen shall state the
new facts that will be proven at a hearing to be held
if the motion is granted, and shall be supported by affidavits or other evidentiary material.
‘‘(C) DEADLINE.—
‘‘(i) IN GENERAL.—Except as provided in this
subparagraph, the motion to reopen shall be filed
within 90 days of the date of entry of a final administrative order of removal.
‘‘(ii) ASYLUM.—There is no time limit on the filing
of a motion to reopen if the basis of the motion is
to apply for relief under sections 208 or 241(b)(3) and
is based on changed country conditions arising in the
country of nationality or the country to which removal
has been ordered, if such evidence is material and
was not available and would not have been discovered
or presented at the previous proceeding.
‘‘(iii) FAILURE TO APPEAR.—The filing of a motion
to reopen an order entered pursuant to subsection (b)(5)
is subject to the deadline specified in subparagraph
(C) of such subsection.
‘‘(d) STIPULATED REMOVAL.—The Attorney General shall provide
by regulation for the entry by an immigration judge of an order
of removal stipulated to by the alien (or the alien’s representative)
and the Service. A stipulated order shall constitute a conclusive
determination of the alien’s removability from the United States.
‘‘(e) DEFINITIONS.—In this section and section 240A:
‘‘(1) EXCEPTIONAL CIRCUMSTANCES.—The term ‘exceptional
circumstances’ refers to exceptional circumstances (such as serious illness of the alien or serious illness or death of the spouse,
child, or parent of the alien, but not including less compelling
circumstances) beyond the control of the alien.
‘‘(2) REMOVABLE.—The term ‘removable’ means—
‘‘(A) in the case of an alien not admitted to the United
States, that the alien is inadmissible under section 212,
or
‘‘(B) in the case of an alien admitted to the United
States, that the alien is deportable under section 237.

PUBLIC LAW 104–208—SEPT. 30, 1996
‘‘CANCELLATION

110 STAT. 3009–594

OF REMOVAL; ADJUSTMENT OF STATUS

‘‘SEC. 240A. (a) CANCELLATION OF REMOVAL FOR CERTAIN
PERMANENT RESIDENTS.—The Attorney General may cancel removal
in the case of an alien who is inadmissible or deportable from
the United States if the alien—
‘‘(1) has been an alien lawfully admitted for permanent
residence for not less than 5 years,
‘‘(2) has resided in the United States continuously for 7
years after having been admitted in any status, and
‘‘(3) has not been convicted of any aggravated felony.
‘‘(b) CANCELLATION OF REMOVAL AND ADJUSTMENT OF STATUS
FOR CERTAIN NONPERMANENT RESIDENTS.—
‘‘(1) IN GENERAL.—The Attorney General may cancel
removal in the case of an alien who is inadmissible or deportable from the United States if the alien—
‘‘(A) has been physically present in the United States
for a continuous period of not less than 10 years immediately preceding the date of such application;
‘‘(B) has been a person of good moral character during
such period;
‘‘(C) has not been convicted of an offense under section
212(a)(2), 237(a)(2), or 237(a)(3); and
‘‘(D) establishes that removal would result in exceptional and extremely unusual hardship to the alien’s
spouse, parent, or child, who is a citizen of the United
States or an alien lawfully admitted for permanent residence.
‘‘(2) SPECIAL RULE FOR BATTERED SPOUSE OR CHILD.—The
Attorney General may cancel removal in the case of an alien
who is inadmissible or deportable from the United States if
the alien demonstrates that—
‘‘(A) the alien has been battered or subjected to extreme
cruelty in the United States by a spouse or parent who
is a United States citizen or lawful permanent resident
(or is the parent of a child of a United States citizen
or lawful permanent resident and the child has been battered or subjected to extreme cruelty in the United States
by such citizen or permanent resident parent);
‘‘(B) the alien has been physically present in the United
States for a continuous period of not less than 3 years
immediately preceding the date of such application;
‘‘(C) the alien has been a person of good moral character during such period;
‘‘(D) the alien is not inadmissible under paragraph
(2) or (3) of section 212(a), is not deportable under paragraph (1)(G) or (2) through (4) of section 237(a), and has
not been convicted of an aggravated felony; and
‘‘(E) the removal would result in extreme hardship
to the alien, the alien’s child, or (in the case of an alien
who is a child) to the alien’s parent.
In acting on applications under this paragraph, the Attorney
General shall consider any credible evidence relevant to the
application. The determination of what evidence is credible
and the weight to be given that evidence shall be within the
sole discretion of the Attorney General.

8 USC 1229b.

110 STAT. 3009–595

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(3) ADJUSTMENT OF STATUS.—The Attorney General may
adjust to the status of an alien lawfully admitted for permanent
residence any alien who the Attorney General determines meets
the requirements of paragraph (1) or (2). The number of adjustments under this paragraph shall not exceed 4,000 for any
fiscal year. The Attorney General shall record the alien’s lawful
admission for permanent residence as of the date the Attorney
General’s cancellation of removal under paragraph (1) or (2)
or determination under this paragraph.
‘‘(c) ALIENS INELIGIBLE FOR RELIEF.—The provisions of subsections (a) and (b)(1) shall not apply to any of the following aliens:
‘‘(1) An alien who entered the United States as a crewman
subsequent to June 30, 1964.
‘‘(2) An alien who was admitted to the United States as
a nonimmigrant exchange alien as defined in section
101(a)(15)(J), or has acquired the status of such a nonimmigrant
exchange alien after admission, in order to receive graduate
medical education or training, regardless of whether or not
the alien is subject to or has fulfilled the two-year foreign
residence requirement of section 212(e).
‘‘(3) An alien who—
‘‘(A) was admitted to the United States as a nonimmigrant exchange alien as defined in section
101(a)(15)(J) or has acquired the status of such a nonimmigrant exchange alien after admission other than to
receive graduate medical education or training,
‘‘(B) is subject to the two-year foreign residence requirement of section 212(e), and
‘‘(C) has not fulfilled that requirement or received a
waiver thereof.
‘‘(4) An alien who is inadmissible under section 212(a)(3)
or deportable under section 237(a)(4).
‘‘(5) An alien who is described in section 241(b)(3)(B)(i).
‘‘(6) An alien whose removal has previously been cancelled
under this section or whose deportation was suspended under
section 244(a) or who has been granted relief under section
212(c), as such sections were in effect before the date of the
enactment of the Illegal Immigration Reform and Immigrant
Responsibility Act of 1996.
‘‘(d) SPECIAL RULES RELATING TO CONTINUOUS RESIDENCE OR
PHYSICAL PRESENCE.—
‘‘(1) TERMINATION OF CONTINUOUS PERIOD.—For purposes
of this section, any period of continuous residence or continuous
physical presence in the United States shall be deemed to
end when the alien is served a notice to appear under section
239(a) or when the alien has committed an offense referred
to in section 212(a)(2) that renders the alien inadmissible to
the United States under section 212(a)(2) or removable from
the United States under section 237(a)(2) or 237(a)(4), whichever is earliest.
‘‘(2) TREATMENT OF CERTAIN BREAKS IN PRESENCE.—An
alien shall be considered to have failed to maintain continuous
physical presence in the United States under subsections (b)(1)
and (b)(2) if the alien has departed from the United States
for any period in excess of 90 days or for any periods in
the aggregate exceeding 180 days.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–596

‘‘(3) CONTINUITY NOT REQUIRED BECAUSE OF HONORABLE
SERVICE IN ARMED FORCES AND PRESENCE UPON ENTRY INTO
SERVICE.—The requirements of continuous residence or continuous physical presence in the United States under subsections
(a) and (b) shall not apply to an alien who—
‘‘(A) has served for a minimum period of 24 months
in an active-duty status in the Armed Forces of the United
States and, if separated from such service, was separated
under honorable conditions, and
‘‘(B) at the time of the alien’s enlistment or induction
was in the United States.
‘‘(e) ANNUAL LIMITATION.—The Attorney General may not cancel the removal and adjust the status under this section, nor suspend the deportation and adjust the status under section 244(a)
(as in effect before the enactment of the Illegal Immigration Reform
and Immigrant Responsibility Act of 1996), of a total of more
than 4,000 aliens in any fiscal year. The previous sentence shall
apply regardless of when an alien applied for such cancellation
and adjustment and whether such an alien had previously applied
for suspension of deportation under such section 244(a).
‘‘VOLUNTARY

DEPARTURE

‘‘SEC. 240B. (a) CERTAIN CONDITIONS.—
‘‘(1) IN GENERAL.—The Attorney General may permit an
alien voluntarily to depart the United States at the alien’s
own expense under this subsection, in lieu of being subject
to proceedings under section 240 or prior to the completion
of such proceedings, if the alien is not deportable under section
237(a)(2)(A)(iii) or section 237(a)(4)(B).
‘‘(2) PERIOD.—Permission to depart voluntarily under this
subsection shall not be valid for a period exceeding 120 days.
‘‘(3) BOND.—The Attorney General may require an alien
permitted to depart voluntarily under this subsection to post
a voluntary departure bond, to be surrendered upon proof that
the alien has departed the United States within the time specified.
‘‘(4) TREATMENT OF ALIENS ARRIVING IN THE UNITED
STATES.—In the case of an alien who is arriving in the United
States and with respect to whom proceedings under section
240 are (or would otherwise be) initiated at the time of such
alien’s arrival, paragraph (1) shall not apply. Nothing in this
paragraph shall be construed as preventing such an alien from
withdrawing the application for admission in accordance with
section 235(a)(4).
‘‘(b) AT CONCLUSION OF PROCEEDINGS.—
‘‘(1) IN GENERAL.—The Attorney General may permit an
alien voluntarily to depart the United States at the alien’s
own expense if, at the conclusion of a proceeding under section
240, the immigration judge enters an order granting voluntary
departure in lieu of removal and finds that—
‘‘(A) the alien has been physically present in the United
States for a period of at least one year immediately preceding the date the notice to appear was served under section
239(a);
‘‘(B) the alien is, and has been, a person of good moral
character for at least 5 years immediately preceding the
alien’s application for voluntary departure;

8 USC 1229c.

110 STAT. 3009–597

8 USC 1252a
note.

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(C) the alien is not deportable under section
237(a)(2)(A)(iii) or section 237(a)(4); and
‘‘(D) the alien has established by clear and convincing
evidence that the alien has the means to depart the United
States and intends to do so.
‘‘(2) PERIOD.—Permission to depart voluntarily under this
subsection shall not be valid for a period exceeding 60 days.
‘‘(3) BOND.—An alien permitted to depart voluntarily under
this subsection shall be required to post a voluntary departure
bond, in an amount necessary to ensure that the alien will
depart, to be surrendered upon proof that the alien has departed
the United States within the time specified.
‘‘(c) ALIENS NOT ELIGIBLE.—The Attorney General shall not
permit an alien to depart voluntarily under this section if the
alien was previously permitted to so depart after having been
found inadmissible under section 212(a)(6)(A).
‘‘(d) CIVIL PENALTY FOR FAILURE TO DEPART.—If an alien is
permitted to depart voluntarily under this section and fails voluntarily to depart the United States within the time period specified,
the alien shall be subject to a civil penalty of not less than $1,000
and not more than $5,000, and be ineligible for a period of 10
years for any further relief under this section and sections 240A,
245, 248, and 249. The order permitting the alien to depart voluntarily shall inform the alien of the penalties under this subsection.
‘‘(e) ADDITIONAL CONDITIONS.—The Attorney General may by
regulation limit eligibility for voluntary departure under this section
for any class or classes of aliens. No court may review any regulation
issued under this subsection.
‘‘(f) JUDICIAL REVIEW.—No court shall have jurisdiction over
an appeal from denial of a request for an order of voluntary departure under subsection (b), nor shall any court order a stay of
an alien’s removal pending consideration of any claim with respect
to voluntary departure.’’.
(b) REPEAL OF SECTION 212(c).—Section 212(c) (8 U.S.C. 1182(c))
is repealed.
(c) STREAMLINING REMOVAL OF CRIMINAL ALIENS.—
(1) IN GENERAL.—Section 242A(b)(4) (8 U.S.C. 1252a(b)(4)),
as amended by section 442(a) of Public Law 104–132 and before
redesignation by section 308(b)(5) of this division, is amended—
(A) by striking subparagraph (D);
(B) by amending subparagraph (E) to read as follows:
‘‘(D) a determination is made for the record that the
individual upon whom the notice for the proceeding under
this section is served (either in person or by mail) is,
in fact, the alien named in such notice;’’; and
(C) by redesignating subparagraphs (F) and (G) as
subparagraph (E) and (F), respectively.
(2) EFFECTIVE DATE.—The amendments made by paragraph
(1) shall be effective as if included in the enactment of section
442(a) of Public Law 104–132.
SEC. 305. DETENTION AND REMOVAL OF ALIENS ORDERED REMOVED
(NEW SECTION 241).

(a) IN GENERAL.—Title II is further amended—
(1) by striking section 237 (8 U.S.C. 1227),

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–598

(2) by redesignating section 241 (8 U.S.C. 1251) as section
237 and by moving such section to immediately follow section
236, and
(3) by inserting after section 240C (as redesignated by
section 304(a)(2)) of this division the following new section:
‘‘DETENTION

8 USC 1227.

AND REMOVAL OF ALIENS ORDERED REMOVED

‘‘SEC. 241. (a) DETENTION, RELEASE, AND REMOVAL OF ALIENS
ORDERED REMOVED.—
‘‘(1) REMOVAL PERIOD.—
‘‘(A) IN GENERAL.—Except as otherwise provided in
this section, when an alien is ordered removed, the Attorney General shall remove the alien from the United States
within a period of 90 days (in this section referred to
as the ‘removal period’).
‘‘(B) BEGINNING OF PERIOD.—The removal period begins
on the latest of the following:
‘‘(i) The date the order of removal becomes
administratively final.
‘‘(ii) If the removal order is judicially reviewed
and if a court orders a stay of the removal of the
alien, the date of the court’s final order.
‘‘(iii) If the alien is detained or confined (except
under an immigration process), the date the alien is
released from detention or confinement.
‘‘(C) SUSPENSION OF PERIOD.—The removal period shall
be extended beyond a period of 90 days and the alien
may remain in detention during such extended period if
the alien fails or refuses to make timely application in
good faith for travel or other documents necessary to the
alien’s departure or conspires or acts to prevent the alien’s
removal subject to an order of removal.
‘‘(2) DETENTION.—During the removal period, the Attorney
General shall detain the alien. Under no circumstance during
the removal period shall the Attorney General release an alien
who has been found inadmissible under section 212(a)(2) or
212(a)(3)(B) or deportable under section 237(a)(2) or
237(a)(4)(B).
‘‘(3) SUPERVISION AFTER 90-DAY PERIOD.—If the alien does
not leave or is not removed within the removal period, the
alien, pending removal, shall be subject to supervision under
regulations prescribed by the Attorney General. The regulations
shall include provisions requiring the alien—
‘‘(A) to appear before an immigration officer periodically for identification;
‘‘(B) to submit, if necessary, to a medical and psychiatric examination at the expense of the United States
Government;
‘‘(C) to give information under oath about the alien’s
nationality, circumstances, habits, associations, and activities, and other information the Attorney General considers
appropriate; and
‘‘(D) to obey reasonable written restrictions on the
alien’s conduct or activities that the Attorney General prescribes for the alien.
‘‘(4) ALIENS IMPRISONED, ARRESTED, OR ON PAROLE, SUPERVISED RELEASE, OR PROBATION.—

8 USC 1231.

110 STAT. 3009–599

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(A) IN GENERAL.—Except as provided in section 343(a)
of the Public Health Service Act (42 U.S.C. 259(a)) and
paragraph (2), the Attorney General may not remove an
alien who is sentenced to imprisonment until the alien
is released from imprisonment. Parole, supervised release,
probation, or possibility of arrest or further imprisonment
is not a reason to defer removal.
‘‘(B) EXCEPTION FOR REMOVAL OF NONVIOLENT OFFENDERS PRIOR TO COMPLETION OF SENTENCE OF IMPRISONMENT.—The Attorney General is authorized to remove an
alien in accordance with applicable procedures under this
Act before the alien has completed a sentence of imprisonment—
‘‘(i) in the case of an alien in the custody of the
Attorney General, if the Attorney General determines
that (I) the alien is confined pursuant to a final conviction for a nonviolent offense (other than an offense
related to smuggling or harboring of aliens or an
offense described in section 101(a)(43)(B), (C), (E), (I),
or (L) and (II) the removal of the alien is appropriate
and in the best interest of the United States; or
‘‘(ii) in the case of an alien in the custody of a
State (or a political subdivision of a State), if the
chief State official exercising authority with respect
to the incarceration of the alien determines that (I)
the alien is confined pursuant to a final conviction
for a nonviolent offense (other than an offense
described in section 101(a)(43)(C) or (E)), (II) the
removal is appropriate and in the best interest of the
State, and (III) submits a written request to the Attorney General that such alien be so removed.
‘‘(C) NOTICE.—Any alien removed pursuant to this
paragraph shall be notified of the penalties under the laws
of the United States relating to the reentry of deported
aliens, particularly the expanded penalties for aliens
removed under subparagraph (B).
‘‘(D) NO PRIVATE RIGHT.—No cause or claim may be
asserted under this paragraph against any official of the
United States or of any State to compel the release,
removal, or consideration for release or removal of any
alien.
‘‘(5) REINSTATEMENT OF REMOVAL ORDERS AGAINST ALIENS
ILLEGALLY REENTERING.—If the Attorney General finds that
an alien has reentered the United States illegally after having
been removed or having departed voluntarily, under an order
of removal, the prior order of removal is reinstated from its
original date and is not subject to being reopened or reviewed,
the alien is not eligible and may not apply for any relief
under this Act, and the alien shall be removed under the
prior order at any time after the reentry.
‘‘(6) INADMISSIBLE OR CRIMINAL ALIENS.—An alien ordered
removed who is inadmissible under section 212, removable
under section 237(a)(1)(C), 237(a)(2), or 237(a)(4) or who has
been determined by the Attorney General to be a risk to the
community or unlikely to comply with the order of removal,
may be detained beyond the removal period and, if released,
shall be subject to the terms of supervision in paragraph (3).

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110 STAT. 3009–600

‘‘(7) EMPLOYMENT AUTHORIZATION.—No alien ordered
removed shall be eligible to receive authorization to be
employed in the United States unless the Attorney General
makes a specific finding that—
‘‘(A) the alien cannot be removed due to the refusal
of all countries designated by the alien or under this section
to receive the alien, or
‘‘(B) the removal of the alien is otherwise impracticable
or contrary to the public interest.
‘‘(b) COUNTRIES TO WHICH ALIENS MAY BE REMOVED.—
‘‘(1) ALIENS ARRIVING AT THE UNITED STATES.—Subject to
paragraph (3)—
‘‘(A) IN GENERAL.—Except as provided by subparagraphs (B) and (C), an alien who arrives at the United
States and with respect to whom proceedings under section
240 were initiated at the time of such alien’s arrival shall
be removed to the country in which the alien boarded
the vessel or aircraft on which the alien arrived in the
United States.
‘‘(B) TRAVEL FROM CONTIGUOUS TERRITORY.—If the
alien boarded the vessel or aircraft on which the alien
arrived in the United States in a foreign territory contiguous to the United States, an island adjacent to the United
States, or an island adjacent to a foreign territory contiguous to the United States, and the alien is not a native,
citizen, subject, or national of, or does not reside in, the
territory or island, removal shall be to the country in
which the alien boarded the vessel that transported the
alien to the territory or island.
‘‘(C) ALTERNATIVE COUNTRIES.—If the government of
the country designated in subparagraph (A) or (B) is unwilling to accept the alien into that country’s territory, removal
shall be to any of the following countries, as directed by
the Attorney General:
‘‘(i) The country of which the alien is a citizen,
subject, or national.
‘‘(ii) The country in which the alien was born.
‘‘(iii) The country in which the alien has a residence.
‘‘(iv) A country with a government that will accept
the alien into the country’s territory if removal to
each country described in a previous clause of this
subparagraph is impracticable, inadvisable, or impossible.
‘‘(2) OTHER ALIENS.—Subject to paragraph (3)—
‘‘(A) SELECTION OF COUNTRY BY ALIEN.—Except as
otherwise provided in this paragraph—
‘‘(i) any alien not described in paragraph (1) who
has been ordered removed may designate one country
to which the alien wants to be removed, and
‘‘(ii) the Attorney General shall remove the alien
to the country the alien so designates.
‘‘(B) LIMITATION ON DESIGNATION.—An alien may designate under subparagraph (A)(i) a foreign territory contiguous to the United States, an adjacent island, or an island
adjacent to a foreign territory contiguous to the United
States as the place to which the alien is to be removed

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PUBLIC LAW 104–208—SEPT. 30, 1996
only if the alien is a native, citizen, subject, or national
of, or has resided in, that designated territory or island.
‘‘(C) DISREGARDING DESIGNATION.—The Attorney General may disregard a designation under subparagraph (A)(i)
if—
‘‘(i) the alien fails to designate a country promptly;
‘‘(ii) the government of the country does not inform
the Attorney General finally, within 30 days after the
date the Attorney General first inquires, whether the
government will accept the alien into the country;
‘‘(iii) the government of the country is not willing
to accept the alien into the country; or
‘‘(iv) the Attorney General decides that removing
the alien to the country is prejudicial to the United
States.
‘‘(D) ALTERNATIVE COUNTRY.—If an alien is not
removed to a country designated under subparagraph (A)(i),
the Attorney General shall remove the alien to a country
of which the alien is a subject, national, or citizen unless
the government of the country—
‘‘(i) does not inform the Attorney General or the
alien finally, within 30 days after the date the Attorney
General first inquires or within another period of time
the Attorney General decides is reasonable, whether
the government will accept the alien into the country;
or
‘‘(ii) is not willing to accept the alien into the
country.
‘‘(E) ADDITIONAL REMOVAL COUNTRIES.—If an alien is
not removed to a country under the previous subparagraphs
of this paragraph, the Attorney General shall remove the
alien to any of the following countries:
‘‘(i) The country from which the alien was admitted
to the United States.
‘‘(ii) The country in which is located the foreign
port from which the alien left for the United States
or for a foreign territory contiguous to the United
States.
‘‘(iii) A country in which the alien resided before
the alien entered the country from which the alien
entered the United States.
‘‘(iv) The country in which the alien was born.
‘‘(v) The country that had sovereignty over the
alien’s birthplace when the alien was born.
‘‘(vi) The country in which the alien’s birthplace
is located when the alien is ordered removed.
‘‘(vii) If impracticable, inadvisable, or impossible
to remove the alien to each country described in a
previous clause of this subparagraph, another country
whose government will accept the alien into that country.
‘‘(F) REMOVAL COUNTRY WHEN UNITED STATES IS AT
WAR.—When the United States is at war and the Attorney
General decides that it is impracticable, inadvisable,
inconvenient, or impossible to remove an alien under this
subsection because of the war, the Attorney General may
remove the alien—

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–602

‘‘(i) to the country that is host to a government
in exile of the country of which the alien is a citizen
or subject if the government of the host country will
permit the alien’s entry; or
‘‘(ii) if the recognized government of the country
of which the alien is a citizen or subject is not in
exile, to a country, or a political or territorial subdivision of a country, that is very near the country of
which the alien is a citizen or subject, or, with the
consent of the government of the country of which
the alien is a citizen or subject, to another country.
‘‘(3) RESTRICTION ON REMOVAL TO A COUNTRY WHERE ALIEN’S
LIFE OR FREEDOM WOULD BE THREATENED.—
‘‘(A) IN GENERAL.—Notwithstanding paragraphs (1) and
(2), the Attorney General may not remove an alien to
a country if the Attorney General decides that the alien’s
life or freedom would be threatened in that country because
of the alien’s race, religion, nationality, membership in
a particular social group, or political opinion.
‘‘(B) EXCEPTION.—Subparagraph (A) does not apply to
an alien deportable under section 237(a)(4)(D) or if the
Attorney General decides that—
‘‘(i) the alien ordered, incited, assisted, or otherwise
participated in the persecution of an individual because
of the individual’s race, religion, nationality, membership in a particular social group, or political opinion;
‘‘(ii) the alien, having been convicted by a final
judgment of a particularly serious crime is a danger
to the community of the United States;
‘‘(iii) there are serious reasons to believe that the
alien committed a serious nonpolitical crime outside
the United States before the alien arrived in the United
States; or
‘‘(iv) there are reasonable grounds to believe that
the alien is a danger to the security of the United
States.
For purposes of clause (ii), an alien who has been convicted
of an aggravated felony (or felonies) for which the alien
has been sentenced to an aggregate term of imprisonment
of at least 5 years shall be considered to have committed
a particularly serious crime. The previous sentence shall
not preclude the Attorney General from determining that,
notwithstanding the length of sentence imposed, an alien
has been convicted of a particularly serious crime. For
purposes of clause (iv), an alien who is described in section
237(a)(4)(B) shall be considered to be an alien with respect
to whom there are reasonable grounds for regarding as
a danger to the security of the United States.
‘‘(c) REMOVAL OF ALIENS ARRIVING AT PORT OF ENTRY.—
‘‘(1) VESSELS AND AIRCRAFT.—An alien arriving at a port
of entry of the United States who is ordered removed either
without a hearing under section 235(b)(1) or 235(c) or pursuant
to proceedings under section 240 initiated at the time of such
alien’s arrival shall be removed immediately on a vessel or
aircraft owned by the owner of the vessel or aircraft on which
the alien arrived in the United States, unless—

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‘‘(A) it is impracticable to remove the alien on one
of those vessels or aircraft within a reasonable time, or
‘‘(B) the alien is a stowaway—
‘‘(i) who has been ordered removed in accordance
with section 235(a)(1),
‘‘(ii) who has requested asylum, and
‘‘(iii) whose application has not been adjudicated
or whose asylum application has been denied but who
has not exhausted all appeal rights.
‘‘(2) STAY OF REMOVAL.—
‘‘(A) IN GENERAL.—The Attorney General may stay the
removal of an alien under this subsection if the Attorney
General decides that—
‘‘(i) immediate removal is not practicable or proper;
or
‘‘(ii) the alien is needed to testify in the prosecution
of a person for a violation of a law of the United
States or of any State.
‘‘(B) PAYMENT OF DETENTION COSTS.—During the period
an alien is detained because of a stay of removal under
subparagraph (A)(ii), the Attorney General may pay from
the appropriation ‘Immigration and Naturalization Service—Salaries and Expenses’—
‘‘(i) the cost of maintenance of the alien; and
‘‘(ii) a witness fee of $1 a day.
‘‘(C) RELEASE DURING STAY.—The Attorney General
may release an alien whose removal is stayed under
subparagraph (A)(ii) on—
‘‘(i) the alien’s filing a bond of at least $500 with
security approved by the Attorney General;
‘‘(ii) condition that the alien appear when required
as a witness and for removal; and
‘‘(iii) other conditions the Attorney General may
prescribe.
‘‘(3) COSTS OF DETENTION AND MAINTENANCE PENDING
REMOVAL.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B) and subsection (d), an owner of a vessel or aircraft
bringing an alien to the United States shall pay the costs
of detaining and maintaining the alien—
‘‘(i) while the alien is detained under subsection
(d)(1), and
‘‘(ii) in the case of an alien who is a stowaway,
while the alien is being detained pursuant to—
‘‘(I) subsection (d)(2)(A) or (d)(2)(B)(i),
‘‘(II) subsection (d)(2)(B)(ii) or (iii) for the
period of time reasonably necessary for the owner
to arrange for repatriation or removal of the stowaway, including obtaining necessary travel documents, but not to extend beyond the date on which
it is ascertained that such travel documents cannot
be obtained from the country to which the stowaway is to be returned, or
‘‘(III) section 235(b)(1)(B)(ii), for a period not
to exceed 15 days (excluding Saturdays, Sundays,
and holidays) commencing on the first such day
which begins on the earlier of 72 hours after the

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–604

time of the initial presentation of the stowaway
for inspection or at the time the stowaway is determined to have a credible fear of persecution.
‘‘(B) NONAPPLICATION.—Subparagraph (A) shall not
apply if—
‘‘(i) the alien is a crewmember;
‘‘(ii) the alien has an immigrant visa;
‘‘(iii) the alien has a nonimmigrant visa or other
documentation authorizing the alien to apply for temporary admission to the United States and applies
for admission not later than 120 days after the date
the visa or documentation was issued;
‘‘(iv) the alien has a reentry permit and applies
for admission not later than 120 days after the date
of the alien’s last inspection and admission;
‘‘(v)(I) the alien has a nonimmigrant visa or other
documentation authorizing the alien to apply for temporary admission to the United States or a reentry
permit;
‘‘(II) the alien applies for admission more than
120 days after the date the visa or documentation
was issued or after the date of the last inspection
and admission under the reentry permit; and
‘‘(III) the owner of the vessel or aircraft satisfies
the Attorney General that the existence of the condition
relating to inadmissibility could not have been discovered by exercising reasonable care before the alien
boarded the vessel or aircraft; or
‘‘(vi) the individual claims to be a national of the
United States and has a United States passport.
‘‘(d) REQUIREMENTS OF PERSONS PROVIDING TRANSPORTATION.—
‘‘(1) REMOVAL AT TIME OF ARRIVAL.—An owner, agent, master, commanding officer, person in charge, purser, or consignee
of a vessel or aircraft bringing an alien (except an alien crewmember) to the United States shall—
‘‘(A) receive an alien back on the vessel or aircraft
or another vessel or aircraft owned or operated by the
same interests if the alien is ordered removed under this
part; and
‘‘(B) take the alien to the foreign country to which
the alien is ordered removed.
‘‘(2) ALIEN STOWAWAYS.—An owner, agent, master,
commanding officer, charterer, or consignee of a vessel or aircraft arriving in the United States with an alien stowaway—
‘‘(A) shall detain the alien on board the vessel or aircraft, or at such place as the Attorney General shall designate, until completion of the inspection of the alien by
an immigration officer;
‘‘(B) may not permit the stowaway to land in the United
States, except pursuant to regulations of the Attorney General temporarily—
‘‘(i) for medical treatment,
‘‘(ii) for detention of the stowaway by the Attorney
General, or
‘‘(iii) for departure or removal of the stowaway;
and

110 STAT. 3009–605

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(C) if ordered by an immigration officer, shall remove
the stowaway on the vessel or aircraft or on another vessel
or aircraft.
The Attorney General shall grant a timely request to remove
the stowaway under subparagraph (C) on a vessel or aircraft
other than that on which the stowaway arrived if the requester
has obtained any travel documents necessary for departure
or repatriation of the stowaway and removal of the stowaway
will not be unreasonably delayed.
‘‘(3) REMOVAL UPON ORDER.—An owner, agent, master,
commanding officer, person in charge, purser, or consignee
of a vessel, aircraft, or other transportation line shall comply
with an order of the Attorney General to take on board, guard
safely, and transport to the destination specified any alien
ordered to be removed under this Act.
‘‘(e) PAYMENT OF EXPENSES OF REMOVAL.—
‘‘(1) COSTS OF REMOVAL AT TIME OF ARRIVAL.—In the case
of an alien who is a stowaway or who is ordered removed
either without a hearing under section 235(a)(1) or 235(c) or
pursuant to proceedings under section 240 initiated at the
time of such alien’s arrival, the owner of the vessel or aircraft
(if any) on which the alien arrived in the United States shall
pay the transportation cost of removing the alien. If removal
is on a vessel or aircraft not owned by the owner of the vessel
or aircraft on which the alien arrived in the United States,
the Attorney General may—
‘‘(A) pay the cost from the appropriation ‘Immigration
and Naturalization Service—Salaries and Expenses’; and
‘‘(B) recover the amount of the cost in a civil action
from the owner, agent, or consignee of the vessel or aircraft
(if any) on which the alien arrived in the United States.
‘‘(2) COSTS OF REMOVAL TO PORT OF REMOVAL FOR ALIENS
ADMITTED OR PERMITTED TO LAND.— In the case of an alien
who has been admitted or permitted to land and is ordered
removed, the cost (if any) of removal of the alien to the port
of removal shall be at the expense of the appropriation for
the enforcement of this Act.
‘‘(3) COSTS OF REMOVAL FROM PORT OF REMOVAL FOR ALIENS
ADMITTED OR PERMITTED TO LAND.—
‘‘(A) THROUGH APPROPRIATION.—Except as provided in
subparagraph (B), in the case of an alien who has been
admitted or permitted to land and is ordered removed,
the cost (if any) of removal of the alien from the port
of removal shall be at the expense of the appropriation
for the enforcement of this Act.
‘‘(B) THROUGH OWNER.—
‘‘(i) IN GENERAL.—In the case of an alien described
in clause (ii), the cost of removal of the alien from
the port of removal may be charged to any owner
of the vessel, aircraft, or other transportation line by
which the alien came to the United States.
‘‘(ii) ALIENS DESCRIBED.—An alien described in this
clause is an alien who—
‘‘(I) is admitted to the United States (other
than lawfully admitted for permanent residence)
and is ordered removed within 5 years of the date

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–606

of admission based on a ground that existed before
or at the time of admission, or
‘‘(II) is an alien crewman permitted to land
temporarily under section 252 and is ordered
removed within 5 years of the date of landing.
‘‘(C) COSTS OF REMOVAL OF CERTAIN ALIENS GRANTED
VOLUNTARY DEPARTURE.—In the case of an alien who has
been granted voluntary departure under section 240B and
who is financially unable to depart at the alien’s own
expense and whose removal the Attorney General deems
to be in the best interest of the United States, the expense
of such removal may be paid from the appropriation for
the enforcement of this Act.
‘‘(f) ALIENS REQUIRING PERSONAL CARE DURING REMOVAL.—
‘‘(1) IN GENERAL.—If the Attorney General believes that
an alien being removed requires personal care because of the
alien’s mental or physical condition, the Attorney General may
employ a suitable person for that purpose who shall accompany
and care for the alien until the alien arrives at the final
destination.
‘‘(2) COSTS.—The costs of providing the service described
in paragraph (1) shall be defrayed in the same manner as
the expense of removing the accompanied alien is defrayed
under this section.
‘‘(g) PLACES OF DETENTION.—
‘‘(1) IN GENERAL.—The Attorney General shall arrange for
appropriate places of detention for aliens detained pending
removal or a decision on removal. When United States Government facilities are unavailable or facilities adapted or suitably
located for detention are unavailable for rental, the Attorney
General may expend from the appropriation ‘Immigration and
Naturalization Service—Salaries and Expenses’, without regard
to section 3709 of the Revised Statutes (41 U.S.C. 5), amounts
necessary to acquire land and to acquire, build, remodel, repair,
and operate facilities (including living quarters for immigration
officers if not otherwise available) necessary for detention.
‘‘(2) DETENTION FACILITIES OF THE IMMIGRATION AND NATURALIZATION SERVICE.—Prior to initiating any project for the
construction of any new detention facility for the Service, the
Commissioner shall consider the availability for purchase or
lease of any existing prison, jail, detention center, or other
comparable facility suitable for such use.
‘‘(h) STATUTORY CONSTRUCTION.—Nothing in this section shall
be construed to create any substantive or procedural right or benefit
that is legally enforceable by any party against the United States
or its agencies or officers or any other person.’’.
(b) REENTRY OF ALIEN REMOVED PRIOR TO COMPLETION OF
TERM OF IMPRISONMENT.—Section 276(b) (8 U.S.C. 1326(b)), as
amended by section 321(b) of this division, is amended—
(1) by striking ‘‘or’’ at the end of paragraph (2),
(2) by adding ‘‘or’’ at the end of paragraph (3), and
(3) by inserting after paragraph (3) the following new paragraph:
‘‘(4) who was removed from the United States pursuant
to section 241(a)(4)(B) who thereafter, without the permission
of the Attorney General, enters, attempts to enter, or is at
any time found in, the United States (unless the Attorney

110 STAT. 3009–607

PUBLIC LAW 104–208—SEPT. 30, 1996

General has expressly consented to such alien’s reentry) shall
be fined under title 18, United States Code, imprisoned for
not more than 10 years, or both.
(c)
MISCELLANEOUS
CONFORMING
AMENDMENT.—Section
212(a)(4) (8 U.S.C. 1182(a)(4)), as amended by section 621(a) of
this division, is amended by striking ‘‘241(a)(5)(B)’’ each place it
appears and inserting ‘‘237(a)(5)(B)’’.
SEC. 306. APPEALS FROM ORDERS OF REMOVAL (NEW SECTION 242).

8 USC 1231.

(a) IN GENERAL.—Section 242 (8 U.S.C. 1252) is amended—
(1) by redesignating subsection (j) as subsection (i) and
by moving such subsection and adding it at the end of section
241, as inserted by section 305(a)(3) of this division; and
(2) by amending the remainder of section 242 to read
as follows:
‘‘JUDICIAL

REVIEW OF ORDERS OF REMOVAL

‘‘SEC. 242. (a) APPLICABLE PROVISIONS.—
‘‘(1) GENERAL ORDERS OF REMOVAL.—Judicial review of a
final order of removal (other than an order of removal without
a hearing pursuant to section 235(b)(1)) is governed only by
chapter 158 of title 28 of the United States Code, except as
provided in subsection (b) and except that the court may not
order the taking of additional evidence under section 2347(c)
of such title.
‘‘(2) MATTERS NOT SUBJECT TO JUDICIAL REVIEW.—
‘‘(A) REVIEW RELATING TO SECTION 235(b)(1).—Notwithstanding any other provision of law, no court shall have
jurisdiction to review—
‘‘(i) except as provided in subsection (e), any
individual determination or to entertain any other
cause or claim arising from or relating to the
implementation or operation of an order of removal
pursuant to section 235(b)(1),
‘‘(ii) except as provided in subsection (e), a decision
by the Attorney General to invoke the provisions of
such section,
‘‘(iii) the application of such section to individual
aliens, including the determination made under section
235(b)(1)(B), or
‘‘(iv) except as provided in subsection (e), procedures and policies adopted by the Attorney General
to implement the provisions of section 235(b)(1).
‘‘(B) DENIALS OF DISCRETIONARY RELIEF.—Notwithstanding any other provision of law, no court shall have
jurisdiction to review—
‘‘(i) any judgment regarding the granting of relief
under section 212(h), 212(i), 240A, 240B, or 245, or
‘‘(ii) any other decision or action of the Attorney
General the authority for which is specified under this
title to be in the discretion of the Attorney General,
other than the granting of relief under section 208(a).
‘‘(C) ORDERS AGAINST CRIMINAL ALIENS.—Notwithstanding any other provision of law, no court shall have
jurisdiction to review any final order of removal against
an alien who is removable by reason of having committed
a criminal offense covered in section 212(a)(2) or

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110 STAT. 3009–608

237(a)(2)(A)(iii), (B), (C), or (D), or any offense covered
by section 237(a)(2)(A)(ii) for which both predicate offenses
are, without regard to their date of commission, otherwise
covered by section 237(a)(2)(A)(i).
‘‘(3) TREATMENT OF CERTAIN DECISIONS.—No alien shall
have a right to appeal from a decision of an immigration
judge which is based solely on a certification described in section 240(c)(1)(B).
‘‘(b) REQUIREMENTS FOR REVIEW OF ORDERS OF REMOVAL.—
With respect to review of an order of removal under subsection
(a)(1), the following requirements apply:
‘‘(1) DEADLINE.—The petition for review must be filed not
later than 30 days after the date of the final order of removal.
‘‘(2) VENUE AND FORMS.—The petition for review shall be
filed with the court of appeals for the judicial circuit in which
the immigration judge completed the proceedings. The record
and briefs do not have to be printed. The court of appeals
shall review the proceeding on a typewritten record and on
typewritten briefs.
‘‘(3) SERVICE.—
‘‘(A) IN GENERAL.—The respondent is the Attorney General. The petition shall be served on the Attorney General
and on the officer or employee of the Service in charge
of the Service district in which the final order of removal
under section 240 was entered.
‘‘(B) STAY OF ORDER.—Service of the petition on the
officer or employee does not stay the removal of an alien
pending the court’s decision on the petition, unless the
court orders otherwise.
‘‘(C) ALIEN’S BRIEF.—The alien shall serve and file a
brief in connection with a petition for judicial review not
later than 40 days after the date on which the administrative record is available, and may serve and file a reply
brief not later than 14 days after service of the brief of
the Attorney General, and the court may not extend these
deadlines except upon motion for good cause shown. If
an alien fails to file a brief within the time provided in
this paragraph, the court shall dismiss the appeal unless
a manifest injustice would result.
‘‘(4) SCOPE AND STANDARD FOR REVIEW.—Except as provided
in paragraph (5)(B)—
‘‘(A) the court of appeals shall decide the petition only
on the administrative record on which the order of removal
is based,
‘‘(B) the administrative findings of fact are conclusive
unless any reasonable adjudicator would be compelled to
conclude to the contrary,
‘‘(C) a decision that an alien is not eligible for admission to the United States is conclusive unless manifestly
contrary to law, and
‘‘(D) the Attorney General’s discretionary judgment
whether to grant relief under section 208(a) shall be conclusive unless manifestly contrary to the law and an abuse
of discretion.
‘‘(5) TREATMENT OF NATIONALITY CLAIMS.—
‘‘(A) COURT DETERMINATION IF NO ISSUE OF FACT.—
If the petitioner claims to be a national of the United

110 STAT. 3009–609

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States and the court of appeals finds from the pleadings
and affidavits that no genuine issue of material fact about
the petitioner’s nationality is presented, the court shall
decide the nationality claim.
‘‘(B) TRANSFER IF ISSUE OF FACT.—If the petitioner
claims to be a national of the United States and the court
of appeals finds that a genuine issue of material fact about
the petitioner’s nationality is presented, the court shall
transfer the proceeding to the district court of the United
States for the judicial district in which the petitioner
resides for a new hearing on the nationality claim and
a decision on that claim as if an action had been brought
in the district court under section 2201 of title 28, United
States Code.
‘‘(C) LIMITATION ON DETERMINATION.—The petitioner
may have such nationality claim decided only as provided
in this paragraph.
‘‘(6) CONSOLIDATION WITH REVIEW OF MOTIONS TO REOPEN
OR RECONSIDER.—When a petitioner seeks review of an order
under this section, any review sought of a motion to reopen
or reconsider the order shall be consolidated with the review
of the order.
‘‘(7) CHALLENGE TO VALIDITY OF ORDERS IN CERTAIN CRIMINAL PROCEEDINGS.—
‘‘(A) IN GENERAL.—If the validity of an order of removal
has not been judicially decided, a defendant in a criminal
proceeding charged with violating section 243(a) may challenge the validity of the order in the criminal proceeding
only by filing a separate motion before trial. The district
court, without a jury, shall decide the motion before trial.
‘‘(B) CLAIMS OF UNITED STATES NATIONALITY.—If the
defendant claims in the motion to be a national of the
United States and the district court finds that—
‘‘(i) no genuine issue of material fact about the
defendant’s nationality is presented, the court shall
decide the motion only on the administrative record
on which the removal order is based and the administrative findings of fact are conclusive if supported by
reasonable, substantial, and probative evidence on the
record considered as a whole; or
‘‘(ii) a genuine issue of material fact about the
defendant’s nationality is presented, the court shall
hold a new hearing on the nationality claim and decide
that claim as if an action had been brought under
section 2201 of title 28, United States Code.
The defendant may have such nationality claim decided
only as provided in this subparagraph.
‘‘(C) CONSEQUENCE OF INVALIDATION.—If the district
court rules that the removal order is invalid, the court
shall dismiss the indictment for violation of section 243(a).
The United States Government may appeal the dismissal
to the court of appeals for the appropriate circuit within
30 days after the date of the dismissal.
‘‘(D) LIMITATION ON FILING PETITIONS FOR REVIEW.—
The defendant in a criminal proceeding under section
243(a) may not file a petition for review under subsection
(a) during the criminal proceeding.

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110 STAT. 3009–610

‘‘(8) CONSTRUCTION.—This subsection—
‘‘(A) does not prevent the Attorney General, after a
final order of removal has been issued, from detaining
the alien under section 241(a);
‘‘(B) does not relieve the alien from complying with
section 241(a)(4) and section 243(g); and
‘‘(C) does not require the Attorney General to defer
removal of the alien.
‘‘(9) CONSOLIDATION OF QUESTIONS FOR JUDICIAL REVIEW.—
Judicial review of all questions of law and fact, including
interpretation and application of constitutional and statutory
provisions, arising from any action taken or proceeding brought
to remove an alien from the United States under this title
shall be available only in judicial review of a final order under
this section.
‘‘(c) REQUIREMENTS FOR PETITION.—A petition for review or
for habeas corpus of an order of removal—
‘‘(1) shall attach a copy of such order, and
‘‘(2) shall state whether a court has upheld the validity
of the order, and, if so, shall state the name of the court,
the date of the court’s ruling, and the kind of proceeding.
‘‘(d) REVIEW OF FINAL ORDERS.—A court may review a final
order of removal only if—
‘‘(1) the alien has exhausted all administrative remedies
available to the alien as of right, and
‘‘(2) another court has not decided the validity of the order,
unless the reviewing court finds that the petition presents
grounds that could not have been presented in the prior judicial
proceeding or that the remedy provided by the prior proceeding
was inadequate or ineffective to test the validity of the order.
‘‘(e) JUDICIAL REVIEW OF ORDERS UNDER SECTION 235(b)(1).—
‘‘(1) LIMITATIONS ON RELIEF.—Without regard to the nature
of the action or claim and without regard to the identity of
the party or parties bringing the action, no court may—
‘‘(A) enter declaratory, injunctive, or other equitable
relief in any action pertaining to an order to exclude an
alien in accordance with section 235(b)(1) except as specifically authorized in a subsequent paragraph of this subsection, or
‘‘(B) certify a class under Rule 23 of the Federal Rules
of Civil Procedure in any action for which judicial review
is authorized under a subsequent paragraph of this subsection.
‘‘(2) HABEAS CORPUS PROCEEDINGS.—Judicial review of any
determination made under section 235(b)(1) is available in
habeas corpus proceedings, but shall be limited to determinations of—
‘‘(A) whether the petitioner is an alien,
‘‘(B) whether the petitioner was ordered removed under
such section, and
‘‘(C) whether the petitioner can prove by a preponderance of the evidence that the petitioner is an alien lawfully
admitted for permanent residence, has been admitted as
a refugee under section 207, or has been granted asylum
under section 208, such status not having been terminated,
and is entitled to such further inquiry as prescribed by
the Attorney General pursuant to section 235(b)(1)(C).

110 STAT. 3009–611

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(3) CHALLENGES ON VALIDITY OF THE SYSTEM.—
‘‘(A) IN GENERAL.—Judicial review of determinations
under section 235(b) and its implementation is available
in an action instituted in the United States District Court
for the District of Columbia, but shall be limited to determinations of—
‘‘(i) whether such section, or any regulation issued
to implement such section, is constitutional; or
‘‘(ii) whether such a regulation, or a written policy
directive, written policy guideline, or written procedure
issued by or under the authority of the Attorney General to implement such section, is not consistent with
applicable provisions of this title or is otherwise in
violation of law.
‘‘(B) DEADLINES FOR BRINGING ACTIONS.—Any action
instituted under this paragraph must be filed no later
than 60 days after the date the challenged section, regulation, directive, guideline, or procedure described in clause
(i) or (ii) of subparagraph (A) is first implemented.
‘‘(C) NOTICE OF APPEAL.—A notice of appeal of an order
issued by the District Court under this paragraph may
be filed not later than 30 days after the date of issuance
of such order.
‘‘(D) EXPEDITIOUS CONSIDERATION OF CASES.—It shall
be the duty of the District Court, the Court of Appeals,
and the Supreme Court of the United States to advance
on the docket and to expedite to the greatest possible
extent the disposition of any case considered under this
paragraph.
‘‘(4) DECISION.—In any case where the court determines
that the petitioner—
‘‘(A) is an alien who was not ordered removed under
section 235(b)(1), or
‘‘(B) has demonstrated by a preponderance of the evidence that the alien is an alien lawfully admitted for
permanent residence, has been admitted as a refugee under
section 207, or has been granted asylum under section
208, the court may order no remedy or relief other than
to require that the petitioner be provided a hearing in
accordance with section 240. Any alien who is provided
a hearing under section 240 pursuant to this paragraph
may thereafter obtain judicial review of any resulting final
order of removal pursuant to subsection (a)(1).
‘‘(5) SCOPE OF INQUIRY.—In determining whether an alien
has been ordered removed under section 235(b)(1), the court’s
inquiry shall be limited to whether such an order in fact was
issued and whether it relates to the petitioner. There shall
be no review of whether the alien is actually inadmissible
or entitled to any relief from removal.
‘‘(f) LIMIT ON INJUNCTIVE RELIEF.—
‘‘(1) IN GENERAL.—Regardless of the nature of the action
or claim or of the identity of the party or parties bringing
the action, no court (other than the Supreme Court) shall
have jurisdiction or authority to enjoin or restrain the operation
of the provisions of chapter 4 of title II, as amended by the
Illegal Immigration Reform and Immigrant Responsibility Act
of 1996, other than with respect to the application of such

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–612

provisions to an individual alien against whom proceedings
under such chapter have been initiated.
‘‘(2) PARTICULAR CASES.—Notwithstanding any other provision of law, no court shall enjoin the removal of any alien
pursuant to a final order under this section unless the alien
shows by clear and convincing evidence that the entry or execution of such order is prohibited as a matter of law.
‘‘(g) EXCLUSIVE JURISDICTION.—Except as provided in this section and notwithstanding any other provision of law, no court
shall have jurisdiction to hear any cause or claim by or on behalf
of any alien arising from the decision or action by the Attorney
General to commence proceedings, adjudicate cases, or execute
removal orders against any alien under this Act.’’.
(b) REPEAL OF SECTION 106.—Section 106 (8 U.S.C. 1105a)
is repealed.
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—Subject to paragraph (2), the amendments
made by subsections (a) and (b) shall apply to all final orders
of deportation or removal and motions to reopen filed on or
after the date of the enactment of this Act and subsection
(g) of section 242 of the Immigration and Nationality Act (as
added by subsection (a)), shall apply without limitation to
claims arising from all past, pending, or future exclusion, deportation, or removal proceedings under such Act.
(2) LIMITATION.—Paragraph (1) shall not be considered to
invalidate or to require the reconsideration of any judgment
or order entered under section 106 of the Immigration and
Nationality Act, as amended by section 440 of Public Law
104–132.
(d) TECHNICAL AMENDMENT.—Effective as if included in the
enactment of the Antiterrorism and Effective Death Penalty Act
of 1996 (Public Law 104–132), subsections (a), (c), (d), (g), and
(h) of section 440 of such Act are amended by striking ‘‘any offense
covered by section 241(a)(2)(A)(ii) for which both predicate offenses
are covered by section 241(a)(2)(A)(i)’’ and inserting ‘‘any offense
covered by section 241(a)(2)(A)(ii) for which both predicate offenses
are, without regard to the date of their commission, otherwise
covered by section 241(a)(2)(A)(i)’’.
SEC. 307. PENALTIES RELATING TO REMOVAL (REVISED SECTION 243).

(a) IN GENERAL.—Section 243 (8 U.S.C. 1253) is amended to
read as follows:
‘‘PENALTIES

RELATED TO REMOVAL

‘‘SEC. 243. (a) PENALTY FOR FAILURE TO DEPART.—
‘‘(1) IN GENERAL.—Any alien against whom a final order
of removal is outstanding by reason of being a member of
any of the classes described in section 237(a), who—
‘‘(A) willfully fails or refuses to depart from the United
States within a period of 90 days from the date of the
final order of removal under administrative processes, or
if judicial review is had, then from the date of the final
order of the court,
‘‘(B) willfully fails or refuses to make timely application
in good faith for travel or other documents necessary to
the alien’s departure,

8 USC 1252 note.

8 USC 1105a,
1182, 1252,
1252a.

110 STAT. 3009–613

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(C) connives or conspires, or takes any other action,
designed to prevent or hamper or with the purpose of
preventing or hampering the alien’s departure pursuant
to such, or
‘‘(D) willfully fails or refuses to present himself or
herself for removal at the time and place required by
the Attorney General pursuant to such order,
shall be fined under title 18, United States Code, or imprisoned
not more than four years (or 10 years if the alien is a member
of any of the classes described in paragraph (1)(E), (2), (3),
or (4) of section 237(a)), or both.
‘‘(2) EXCEPTION.—It is not a violation of paragraph (1)
to take any proper steps for the purpose of securing cancellation
of or exemption from such order of removal or for the purpose
of securing the alien’s release from incarceration or custody.
‘‘(3) SUSPENSION.—The court may for good cause suspend
the sentence of an alien under this subsection and order the
alien’s release under such conditions as the court may prescribe.
In determining whether good cause has been shown to justify
releasing the alien, the court shall take into account such
factors as—
‘‘(A) the age, health, and period of detention of the
alien;
‘‘(B) the effect of the alien’s release upon the national
security and public peace or safety;
‘‘(C) the likelihood of the alien’s resuming or following
a course of conduct which made or would make the alien
deportable;
‘‘(D) the character of the efforts made by such alien
himself and by representatives of the country or countries
to which the alien’s removal is directed to expedite the
alien’s departure from the United States;
‘‘(E) the reason for the inability of the Government
of the United States to secure passports, other travel documents, or removal facilities from the country or countries
to which the alien has been ordered removed; and
‘‘(F) the eligibility of the alien for discretionary relief
under the immigration laws.
‘‘(b) WILLFUL FAILURE TO COMPLY WITH TERMS OF RELEASE
UNDER SUPERVISION.—An alien who shall willfully fail to comply
with regulations or requirements issued pursuant to section
241(a)(3) or knowingly give false information in response to an
inquiry under such section shall be fined not more than $1,000
or imprisoned for not more than one year, or both.
‘‘(c) PENALTIES RELATING TO VESSELS AND AIRCRAFT.—
‘‘(1) CIVIL PENALTIES.—
‘‘(A) FAILURE TO CARRY OUT CERTAIN ORDERS.—If the
Attorney General is satisfied that a person has violated
subsection (d) or (e) of section 241, the person shall pay
to the Commissioner the sum of $2,000 for each violation.
‘‘(B) FAILURE TO REMOVE ALIEN STOWAWAYS.—If the
Attorney General is satisfied that a person has failed to
remove an alien stowaway as required under section
241(d)(2), the person shall pay to the Commissioner the
sum of $5,000 for each alien stowaway not removed.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–614

‘‘(C) NO COMPROMISE.—The Attorney General may not
compromise the amount of such penalty under this paragraph.
‘‘(2) CLEARING VESSELS AND AIRCRAFT.—
‘‘(A) CLEARANCE BEFORE DECISION ON LIABILITY.—A
vessel or aircraft may be granted clearance before a decision
on liability is made under paragraph (1) only if a bond
approved by the Attorney General or an amount sufficient
to pay the civil penalty is deposited with the Commissioner.
‘‘(B) PROHIBITION ON CLEARANCE WHILE PENALTY
UNPAID.—A vessel or aircraft may not be granted clearance
if a civil penalty imposed under paragraph (1) is not paid.
‘‘(d) DISCONTINUING GRANTING VISAS TO NATIONALS OF COUNTRY DENYING OR DELAYING ACCEPTING ALIEN.—On being notified
by the Attorney General that the government of a foreign country
denies or unreasonably delays accepting an alien who is a citizen,
subject, national, or resident of that country after the Attorney
General asks whether the government will accept the alien under
this section, the Secretary of State shall order consular officers
in that foreign country to discontinue granting immigrant visas
or nonimmigrant visas, or both, to citizens, subjects, nationals,
and residents of that country until the Attorney General notifies
the Secretary that the country has accepted the alien.’’.
SEC. 308. REDESIGNATION AND REORGANIZATION OF OTHER PROVISIONS; ADDITIONAL CONFORMING AMENDMENTS.

(a) CONFORMING AMENDMENT TO TABLE OF CONTENTS; OVERREORGANIZED CHAPTERS.—The table of contents, as amended by sections 123(b) and 671(e)(1) of this division, is amended—
(1) by striking the item relating to section 106, and
(2) by striking the item relating to chapter 4 of title II
and all that follows through the item relating to section 244A
and inserting the following:
VIEW OF

‘‘CHAPTER 4—INSPECTION,

APPREHENSION, EXAMINATION, EXCLUSION,
AND REMOVAL

‘‘Sec. 231. Lists of alien and citizen passengers arriving or departing;
record of resident aliens and citizens leaving permanently for
foreign country.
‘‘Sec. 232. Detention of aliens for physical and mental examination.
‘‘Sec. 233. Entry through or from foreign territory and adjacent islands;
landing stations.
‘‘Sec. 234. Designation of ports of entry for aliens arriving by civil aircraft.
‘‘Sec. 235. Inspection by immigration officers; expedited
inadmissible arriving aliens; referral for hearing.

removal

of

‘‘Sec. 235A. Preinspection at foreign airports.
‘‘Sec. 236. Apprehension and detention of aliens not lawfully in the United
States.
‘‘Sec. 237. General classes of deportable aliens.
‘‘Sec. 238. Expedited removal of aliens convicted of committing aggravated
felonies.
‘‘Sec. 239. Initiation of removal proceedings.
‘‘Sec. 240. Removal proceedings.

110 STAT. 3009–615

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘Sec. 240A. Cancellation of removal; adjustment of status.
‘‘Sec. 240B. Voluntary departure.
‘‘Sec. 240C. Records of admission.
‘‘Sec. 241. Detention and removal of aliens ordered removed.
‘‘Sec. 242. Judicial review of orders of removal.
‘‘Sec. 243. Penalties relating to removal.
‘‘Sec. 244. Temporary protected status.

‘‘CHAPTER 5—ADJUSTMENT

AND CHANGE OF STATUS’’.

(b) REORGANIZATION OF OTHER PROVISIONS.—Chapters 4 and
5 of title II are amended as follows:
(1) AMENDING CHAPTER HEADING.—Amend the heading for
chapter 4 of title II to read as follows:
‘‘CHAPTER 4—INSPECTION, APPREHENSION, EXAMINATION,
EXCLUSION, AND REMOVAL’’.
(2) REDESIGNATING SECTION 232 AS SECTION 232(a).—Amend
section 232 (8 U.S.C. 1222)—
(A) by inserting ‘‘(a) DETENTION OF ALIENS.—’’ after
‘‘SEC. 232.’’, and
(B) by amending the section heading to read as follows:
‘‘DETENTION

8 USC 1222.
8 USC 1223.

8 USC 1228.

8 USC 1254a.

OF ALIENS FOR PHYSICAL AND MENTAL EXAMINATION’’.

(3) REDESIGNATING SECTION 234 AS SECTION 232(b).—Amend
section 234 (8 U.S.C. 1224)—
(A) by striking the heading,
(B) by striking ‘‘SEC. 234.’’ and inserting the following:
‘‘(b) PHYSICAL AND MENTAL EXAMINATION.—’’, and
(C) by moving such provision to the end of section
232.
(4) REDESIGNATING SECTION 238 AS SECTION 233.—Redesignate section 238 (8 U.S.C. 1228) as section 233 and move
the section to immediately follow section 232.
(5) REDESIGNATING SECTION 242A AS SECTION 238.—Redesignate section 242A as section 238, strike ‘‘DEPORTATION’’ in its
heading and insert ‘‘REMOVAL’’, and move the section to immediately follow section 237 (as redesignated by section 305(a)(2)).
(6) STRIKING SECTION 242B.—Strike section 242B (8 U.S.C.
1252b).
(7) STRIKING SECTION 244 AND REDESIGNATING SECTION 244A
AS SECTION 244.—Strike section 244 (8 U.S.C. 1254) and redesignate section 244A as section 244.
(8) AMENDING CHAPTER HEADING.—Amend the heading for
chapter 5 of title II to read as follows:
‘‘CHAPTER 5—ADJUSTMENT

AND

CHANGE

OF

STATUS’’.

(c) ADDITIONAL CONFORMING AMENDMENTS.—
(1) EXPEDITED PROCEDURES FOR AGGRAVATED FELONS
(FORMER SECTION 242A).—Section 238 (which, previous to
redesignation under section 308(b)(5) of this division, was section 242A) is amended—
(A) in subsection (a)(1), by striking ‘‘section 242’’ and
inserting ‘‘section 240’’;

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110 STAT. 3009–616

(B) in subsection (a)(2), by striking ‘‘section 242(a)(2)’’
and inserting ‘‘section 236(c)’’; and
(C) in subsection (b)(1), by striking ‘‘section
241(a)(2)(A)(iii)’’ and inserting ‘‘section 237(a)(2)(A)(iii)’’.
(2) TREATMENT OF CERTAIN HELPLESS ALIENS.—
(A) CERTIFICATION OF HELPLESS ALIENS.—Section 232
(8 U.S.C. 1222), as amended by section 308(b)(2) of this
division, is further amended by adding at the end the
following new subsection:
‘‘(c) CERTIFICATION OF CERTAIN HELPLESS ALIENS.—If an
examining medical officer determines that an alien arriving in
the United States is inadmissible, is helpless from sickness, mental
or physical disability, or infancy, and is accompanied by another
alien whose protection or guardianship may be required, the officer
may certify such fact for purposes of applying section 212(a)(10)(B)
with respect to the other alien.’’.
(B) GROUND OF INADMISSIBILITY FOR PROTECTION AND
GUARDIANSHIP OF ALIENS DENIED ADMISSION FOR HEALTH
OR INFANCY.—Subparagraph (B) of section 212(a)(10) (8

U.S.C. 1182(a)(10)), as redesignated by section 301(a)(1)
of this division, is amended to read as follows:
‘‘(B) GUARDIAN REQUIRED TO ACCOMPANY HELPLESS
ALIEN.—Any alien—
‘‘(i) who is accompanying another alien who is
inadmissible and who is certified to be helpless from
sickness, mental or physical disability, or infancy
pursuant to section 232(c), and
‘‘(ii) whose protection or guardianship is determined to be required by the alien described in clause
(i),
is inadmissible.’’.
(3) CONTINGENT CONSIDERATION IN RELATION TO REMOVAL
OF ALIENS.—Section 273(a) (8 U.S.C. 1323(a)) is amended—
(A) by inserting ‘‘(1)’’ after ‘‘(a)’’, and
(B) by adding at the end the following new paragraph:
‘‘(2) It is unlawful for an owner, agent, master, commanding
officer, person in charge, purser, or consignee of a vessel or aircraft
who is bringing an alien (except an alien crewmember) to the
United States to take any consideration to be kept or returned
contingent on whether an alien is admitted to, or ordered removed
from, the United States.’’.
(4) CLARIFICATION.—(A) Section 238(a)(1), which, previous
to redesignation under section 308(b)(5) of this division, was
section 242A(a)(1), is amended by adding at the end the following: ‘‘Nothing in this section shall be construed to create any
substantive or procedural right or benefit that is legally enforceable by any party against the United States or its agencies
or officers or any other person.’’.
(B) Section 225 of the Immigration and Nationality Technical Corrections Act of 1994 (Public Law 103–416) is amended
by striking ‘‘and nothing in’’ and all that follows up to ‘‘shall’’.
(d) ADDITIONAL CONFORMING AMENDMENTS RELATING TO
EXCLUSION AND INADMISSIBILITY.—
(1) SECTION 212.—Section 212 (8 U.S.C. 1182(a)) is amended—
(A) in the heading, by striking ‘‘EXCLUDED FROM’’ and
inserting ‘‘INELIGIBLE FOR’’;

8 USC 1228.

8 USC 1101 note.

110 STAT. 3009–617

8 USC 1101,
1183, 1224, 1251,
1322, 1327, 1356.
8 USC 1182 note.
8 USC 1182 note.

8 USC 1101 note.

PUBLIC LAW 104–208—SEPT. 30, 1996

(B) in the matter in subsection (a) before paragraph
(1), by striking all that follows ‘‘(a)’’ and inserting the
following: ‘‘CLASSES OF ALIENS INELIGIBLE FOR VISAS OR
ADMISSION.—Except as otherwise provided in this Act,
aliens who are inadmissible under the following paragraphs
are ineligible to receive visas and ineligible to be admitted
to the United States:’’;
(C) in subsection (a), by striking ‘‘is excludable’’ and
inserting ‘‘is inadmissible’’ each place it appears;
(D) in subsections (a)(5)(C) (before redesignation by
section 343(c)(1) of this division), (d)(1), and (k), by striking
‘‘exclusion’’ and inserting ‘‘inadmissibility’’;
(E) in subsections (b), (d)(3), (h)(1)(A)(i), and (k), by
striking ‘‘excludable’’ each place it appears and inserting
‘‘inadmissible’’;
(F) in subsection (b)(2), by striking ‘‘or ineligible for
entry’’;
(G) in subsection (d)(7), by striking ‘‘excluded from’’
and inserting ‘‘denied’’; and
(H) in subsection (h)(1)(B), by striking ‘‘exclusion’’ and
inserting ‘‘denial of admission’’.
(2) SECTION 241.—Section 241 (8 U.S.C. 1251), before
redesignation as section 237 by section 305(a)(2) of this division,
is amended—
(A) in subsection (a)(1)(H), by striking ‘‘excludable’’
and inserting ‘‘inadmissible’’;
(B) in subsection (a)(4)(C)(ii), by striking ‘‘excludability’’
and inserting ‘‘inadmissibility’’;
(C) in subsection (c), by striking ‘‘exclusion’’ and inserting ‘‘inadmissibility’’; and
(D) effective upon enactment of this Act, by striking
subsection (d), as added by section 414(a) of the
Antiterrorism and Effective Death Penalty Act of 1996
(P.L. 104–132).
(3) OTHER GENERAL REFERENCES.—The following provisions
are amended by striking ‘‘excludability’’ and ‘‘excludable’’ each
place each appears and inserting ‘‘inadmissibility’’ and
‘‘inadmissible’’, respectively:
(A) Sections 101(f)(3), 213, 234 (before redesignation
by section 308(b) of this division), 241(a)(1) (before
redesignation by section 305(a)(2) of this division), 272(a),
277, 286(h)(2)(A)(v), and 286(h)(2)(A)(vi).
(B) Section 601(c) of the Immigration Act of 1990.
(C) Section 128 of the Foreign Relations Authorization
Act, Fiscal Years 1992 and 1993 (Public Law 102–138).
(D) Section 1073 of the National Defense Authorization
Act for Fiscal Year 1995 (Public Law 103–337).
(E) Section 221 of the Immigration and Nationality
Technical Corrections Act of 1994 (Public Law 103–416).
(4) RELATED TERMS.—
(A) Section 101(a)(17) (8 U.S.C. 1101(a)(17)) is amended
by striking ‘‘or expulsion’’ and inserting ‘‘expulsion, or
removal’’.
(B) Section 102 (8 U.S.C. 1102) is amended by striking
‘‘exclusion or deportation’’ and inserting ‘‘removal’’.

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110 STAT. 3009–618

(C) Section 103(c)(2) (8 U.S.C. 1103(c)(2)) is amended
by striking ‘‘been excluded or deported’’ and inserting ‘‘not
been admitted or have been removed’’.
(D) Section 206 (8 U.S.C. 1156) is amended by striking
‘‘excluded from admission to the United States and
deported’’ and inserting ‘‘denied admission to the United
States and removed’’.
(E) Section 216(f) (8 U.S.C. 1186a) is amended by striking ‘‘exclusion’’ and inserting ‘‘inadmissibility’’.
(F) Section 217 (8 U.S.C. 1187) is amended by striking
‘‘excluded from admission’’ and inserting ‘‘denied admission
at the time of arrival’’ each place it appears.
(G) Section 221(f) (8 U.S.C. 1201) is amended by striking ‘‘exclude’’ and inserting ‘‘deny admission to’’.
(H) Section 232(a) (8 U.S.C. 1222(a)), as redesignated
by subsection (b)(2), is amended by striking ‘‘excluded by’’
and ‘‘the excluded classes’’ and inserting ‘‘inadmissible
under’’ and ‘‘inadmissible classes’’, respectively.
(I)(i) Section 272 (8 U.S.C. 1322) is amended—
(I) by striking ‘‘EXCLUSION’’ in the heading and
inserting ‘‘DENIAL OF ADMISSION’’,
(II) in subsection (a), by striking ‘‘excluding condition’’ and inserting ‘‘condition causing inadmissibility’’,
and
(III) in subsection (c), by striking ‘‘excluding’’.
(ii) The item in the table of contents relating to such
section is amended by striking ‘‘exclusion’’ and inserting
‘‘denial of admission’’.
(J) Section 276(a) (8 U.S.C. 1326(a)) is amended—
(i) in paragraph (1), as amended by section 324(a)
of this division—
(I) by striking ‘‘arrested and deported, has
been excluded and deported,’’ and inserting ‘‘denied
admission, excluded, deported, or removed’’, and
(II) by striking ‘‘exclusion or deportation’’ and
inserting ‘‘exclusion, deportation, or removal’’; and
(ii) in paragraph (2)(B), by striking ‘‘excluded and
deported’’ and inserting ‘‘denied admission and
removed’’.
(K) Section 286(h)(2)(A)(vi) (8 U.S.C. 1356(h)(2)(A)(vi))
is amended by striking ‘‘exclusion’’ each place it appears
and inserting ‘‘removal’’.
(L) Section 287 (8 U.S.C. 1357) is amended—
(i) in subsection (a), by striking ‘‘or expulsion’’
each place it appears and inserting ‘‘expulsion, or
removal’’, and
(ii) in subsection (c), by striking ‘‘exclusion from’’
and inserting ‘‘denial of admission to’’.
(M) Section 290(a) (8 U.S.C. 1360(a)) is amended by
striking ‘‘admitted to the United States, or excluded therefrom’’ each place it appears and inserting ‘‘admitted or
denied admission to the United States’’.
(N) Section 291 (8 U.S.C. 1361) is amended by striking
‘‘subject to exclusion’’ and inserting ‘‘inadmissible’’ each
place it appears.

110 STAT. 3009–619

8 USC 1255a
note.
8 USC 1522 note.

8 USC 1522 note.

8 USC 1225,
1225 note, 1227.

PUBLIC LAW 104–208—SEPT. 30, 1996

(O) Section 292 (8 U.S.C. 1362) is amended by striking
‘‘exclusion or deportation’’ each place it appears and inserting ‘‘removal’’.
(P) Section 360 (8 U.S.C. 1503) is amended—
(i) in subsection (a), by striking ‘‘exclusion’’ each
place it appears and inserting ‘‘removal’’, and
(ii) in subsection (c), by striking ‘‘excluded from’’
and inserting ‘‘denied’’.
(Q) Section 507(b)(2)(D) (8 U.S.C. 1537(b)(2)(D)) is
amended by striking ‘‘exclusion because such alien is
excludable’’ and inserting ‘‘removal because such alien is
inadmissible’’.
(R) Section 301(a)(1) of the Immigration Act of 1990
is amended by striking ‘‘exclusion’’ and inserting ‘‘inadmissibility’’.
(S) Section 401(c) of the Refugee Act of 1980 is amended by striking ‘‘deportation or exclusion’’ and inserting
‘‘removal’’.
(T) Section 501(e)(2) of the Refugee Education Assistance Act of 1980 (Public Law 96–422) is amended—
(i) by striking ‘‘exclusion or deportation’’ each place
it appears and inserting ‘‘removal’’, and
(ii) by striking ‘‘deportation or exclusion’’ each
place it appears and inserting ‘‘removal’’.
(U) Section 4113(c) of title 18, United States Code,
is amended by striking ‘‘exclusion and deportation’’ and
inserting ‘‘removal’’.
(5) REPEAL OF SUPERSEDED PROVISION.—Effective as of the
date of the enactment of the Antiterrorism and Effective Death
Penalty Act of 1996, section 422 of such Act is repealed and
the Immigration and Nationality Act shall be applied as if
such section had not been enacted.
(e) REVISION OF TERMINOLOGY RELATING TO DEPORTATION.—
(1) Each of the following is amended by striking ‘‘deportation’’ each place it appears and inserting ‘‘removal’’:
(A) Subparagraphs (A)(iii)(II), (A)(iv)(II), and (B)(iii)(II)
of section 204(a)(1) (8 U.S.C. 1154(a)(1)).
(B) Section 212(d)(1) (8 U.S.C. 1182(d)(1)).
(C) Section 212(d)(11) (8 U.S.C. 1182(d)(11)).
(D) Section 214(k)(4)(C) (8 U.S.C. 1184(k)(4)(C)), as
redesignated by section 671(a)(3)(A) of this division.
(E) Section 241(a)(1)(H) (8 U.S.C. 1251(a)(1)(H)), before
redesignation as section 237 by section 305(a)(2) of this
division.
(F) Section 242A (8 U.S.C. 1252a), before redesignation
as section 238 by subsection (b)(5).
(G) Subsections (a)(3) and (b)(5)(B) of section 244A
(8 U.S.C. 1254a), before redesignation as section 244 by
subsection (b)(7).
(H) Section 246(a) (8 U.S.C. 1256(a)).
(I) Section 254 (8 U.S.C. 1284).
(J) Section 263(a)(4) (8 U.S.C. 1303(a)(4)).
(K) Section 276(b) (8 U.S.C. 1326(b)).
(L) Section 286(h)(2)(A)(v) (8 U.S.C. 1356(h)(2)(A)(v)).
(M) Section 287(g) (8 U.S.C. 1357(g)) (as added by
section 122 of this division).
(N) Section 291 (8 U.S.C. 1361).

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–620

(O) Section 318 (8 U.S.C. 1429).
(P) Section 130005(a) of the Violent Crime Control
and Law Enforcement Act of 1994 (Public Law 103–322).
(Q) Section 4113(b) of title 18, United States Code.
(2) Each of the following is amended by striking ‘‘deported’’
each place it appears and inserting ‘‘removed’’:
(A) Section 212(d)(7) (8 U.S.C. 1182(d)(7)).
(B) Section 214(d) (8 U.S.C. 1184(d)).
(C) Section 241(a) (8 U.S.C. 1251(a)), before redesignation as section 237 by section 305(a)(2) of this division.
(D)
Section
242A(c)(2)(D)(iv)
(8
U.S.C.
1252a(c)(2)(D)(iv)), as amended by section 671(b)(13) of this
division but before redesignation as section 238 by subsection (b)(5).
(E) Section 252(b) (8 U.S.C. 1282(b)).
(F) Section 254 (8 U.S.C. 1284).
(G) Subsections (b) and (c) of section 266 (8 U.S.C.
1306).
(H) Section 301(a)(1) of the Immigration Act of 1990.
(I) Section 4113 of title 18, United States Code.
(3) Section 101(g) (8 U.S.C. 1101(g)) is amended by inserting ‘‘or removed’’ after ‘‘deported’’ each place it appears.
(4) Section 103(c)(2) (8 U.S.C. 1103(c)(2)) is amended by
striking ‘‘suspension of deportation’’ and inserting ‘‘cancellation
of removal’’.
(5) Section 201(b)(1)(D) (8 U.S.C. 1151(b)(1)(D)) is amended
by striking ‘‘deportation is suspended’’ and inserting ‘‘removal
is canceled’’.
(6) Section 212(l)(2)(B) (8 U.S.C. 1182(l)(2)(B)) is amended
by striking ‘‘deportation against’’ and inserting ‘‘removal of’’.
(7) Subsections (b)(2), (c)(2)(B), (c)(3)(D), (c)(4)(A), and
(d)(2)(C) of section 216 (8 U.S.C. 1186a) are each amended
by striking ‘‘DEPORTATION’’, ‘‘deportation’’, ‘‘deport’’, and
‘‘deported’’ each place each appears and inserting ‘‘REMOVAL’’,
‘‘removal’’, ‘‘remove’’, and ‘‘removed’’, respectively.
(8) Subsections (b)(2), (c)(2)(B), (c)(3)(D), and (d)(2)(C) of
section 216A (8 U.S.C. 1186b) are each amended by striking
‘‘DEPORTATION’’, ‘‘deportation’’, ‘‘deport’’, and ‘‘deported’’ and
inserting ‘‘REMOVAL’’, ‘‘removal’’, ‘‘remove’’, and ‘‘removed’’,
respectively.
(9) Section 217(b)(2) (8 U.S.C. 1187(b)(2)) is amended by
striking ‘‘deportation against’’ and inserting ‘‘removal of’’.
(10) Section 242A (8 U.S.C. 1252a), before redesignation
as section 238 by subsection (b)(6), is amended, in the headings
to various subdivisions, by striking ‘‘DEPORTATION’’ and ‘‘DEPORTATION’’ and inserting ‘‘REMOVAL’’ and ‘‘REMOVAL’’, respectively.
(11) Section 244A(a)(1)(A) (8 U.S.C. 1254a(a)(1)(A)), before
redesignation as section 244 by subsection (b)(8), is amended—
(A) in subsection (a)(1)(A), by striking ‘‘deport’’ and
inserting ‘‘remove’’, and
(B) in subsection (e), by striking ‘‘SUSPENSION OF
DEPORTATION’’ and inserting ‘‘CANCELLATION OF REMOVAL’’.
(12) Section 254 (8 U.S.C. 1284) is amended by striking
‘‘deport’’ each place it appears and inserting ‘‘remove’’.
(13) Section 273(d) (8 U.S.C. 1323(d)) is repealed.
(14)(A) Section 276 (8 U.S.C. 1326) is amended by striking
‘‘DEPORTED’’ and inserting ‘‘REMOVED’’.

8 USC 1158 note.

8 USC 1225a
note.

110 STAT. 3009–621

8 USC 1255a
note.

8 USC 1158 note.

8 USC 1182 note.

8 USC 1182.

PUBLIC LAW 104–208—SEPT. 30, 1996

(B) The item in the table of contents relating to such
section is amended by striking ‘‘deported’’ and inserting
‘‘removed’’.
(15) Section 318 (8 U.S.C. 1429) is amended by striking
‘‘suspending’’ and inserting ‘‘canceling’’.
(16) Section 301(a) of the Immigration Act of 1990 is
amended by striking ‘‘DEPORTATION’’ and inserting ‘‘REMOVAL’’.
(17) The heading of section 130005 of the Violent Crime
Control and Law Enforcement Act of 1994 (Public Law 103–
322) is amended by striking ‘‘DEPORTATION’’ and inserting
‘‘REMOVAL’’.
(18) Section 9 of the Peace Corps Act (22 U.S.C. 2508)
is amended by striking ‘‘deported’’ and all that follows through
‘‘Deportation’’ and inserting ‘‘removed pursuant to chapter 4
of title II of the Immigration and Nationality Act’’.
(19) Section 8(c) of the Foreign Agents Registration Act
(22 U.S.C. 618(c)) is amended by striking ‘‘deportation’’ and
all that follows and inserting ‘‘removal pursuant to chapter
4 of title II of the Immigration and Nationality Act.’’.
(f) REVISION OF REFERENCES TO ENTRY.—
(1) The following provisions are amended by striking
‘‘entry’’ and inserting ‘‘admission’’ each place it appears:
(A) Section 101(a)(15)(K) (8 U.S.C. 1101(a)(15)(K)).
(B) Section 101(a)(30) (8 U.S.C. 1101(a)(30)).
(C) Section 212(a)(2)(D) (8 U.S.C. 1182(a)(2)(D)).
(D) Section 212(a)(6)(C)(i) (8 U.S.C. 1182(a)(6)(C)(i)).
(E) Section 212(h)(1)(A)(i) (8 U.S.C. 1182(h)(1)(A)(i)).
(F) Section 212(j)(1)(D) (8 U.S.C. 1182(j)(1)(D)).
(G) Section 214(c)(2)(A) (8 U.S.C. 1184(c)(2)(A)).
(H) Section 214(d) (8 U.S.C. 1184(d)).
(I) Section 216(b)(1)(A)(i) (8 U.S.C. 1186a(b)(1)(A)(i)).
(J)
Section
216(d)(1)(A)(i)(III)
(8
U.S.C.
1186a(d)(1)(A)(i)(III)).
(K) Subsection (b) of section 240 (8 U.S.C. 1230), before
redesignation as section 240C by section 304(a)(2) of this
division.
(L) Subsection (a)(1)(G) of section 241 (8 U.S.C. 1251),
before redesignation as section 237 by section 305(a)(2)
of this division.
(M) Subsection (a)(1)(H) of section 241 (8 U.S.C. 1251),
before redesignation as section 237 by section 305(a)(2)
of this division, other than the last time it appears.
(N) Paragraphs (2) and (4) of subsection (a) of section
241 (8 U.S.C. 1251), before redesignation as section 237
by section 305(a)(2) of this division.
(O) Section 245(e)(3) (8 U.S.C. 1255(e)(3)).
(P) Section 247(a) (8 U.S.C. 1257(a)).
(Q) Section 601(c)(2) of the Immigration Act of 1990.
(2) The following provisions are amended by striking
‘‘enter’’ and inserting ‘‘be admitted’’:
(A) Section 204(e) (8 U.S.C. 1154(e)).
(B) Section 221(h) (8 U.S.C. 1201(h)).
(C) Section 245(e)(2) (8 U.S.C. 1255(e)(2)).
(3) The following provisions are amended by striking
‘‘enters’’ and inserting ‘‘is admitted to’’:
(A) Section 212(j)(1)(D)(ii) (8 U.S.C. 1154(e)).
(B) Section 214(c)(5)(B) (8 U.S.C. 1184(c)(5)(B)).

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–622

(4) Subsection (a) of section 238 (8 U.S.C. 1228), before
redesignation as section 233 by section 308(b)(4) of this division,
is amended by striking ‘‘entry and inspection’’ and inserting
‘‘inspection and admission’’.
(5) Subsection (a)(1)(H)(ii) of section 241 (8 U.S.C. 1251),
before redesignation as section 237 by section 305(a)(2) of this
division, is amended by striking ‘‘at entry’’.
(6) Section 7 of the Central Intelligence Agency Act of
1949 (50 U.S.C. 403h) is amended by striking ‘‘that the entry’’,
‘‘given entry into’’, and ‘‘entering’’ and inserting ‘‘that the admission’’, ‘‘admitted to’’, and ‘‘admitted to’’.
(7) Section 4 of the Atomic Weapons and Special Nuclear
Materials Rewards Act (50 U.S.C. 47c) is amended by striking
‘‘entry’’ and inserting ‘‘admission’’.
(g) CONFORMING REFERENCES TO REORGANIZED SECTIONS.—
(1) REFERENCES TO SECTIONS 232, 234, 238, 239, 240, 241,
242A, AND 244A.—Any reference in law in effect on the day
before the date of the enactment of this Act to section 232,
234, 238, 239, 240, 241, 242A, or 244A of the Immigration
and Nationality Act (or a subdivision of such section) is deemed,
as of the title III–A effective date, to refer to section 232(a),
232(b), 233, 234, 234A, 237, 238, or 244 of such Act (or the
corresponding subdivision of such section), as redesignated by
this subtitle. Any reference in law to section 241 (or a subdivision of such section) of the Immigration and Nationality Act
in an amendment made by a subsequent subtitle of this title
is deemed a reference (as of the title III–A effective date)
to section 237 (or the corresponding subdivision of such section),
as redesignated by this subtitle.
(2) REFERENCES TO SECTION 106.—
(A) Sections 242A(b)(3) and 242A(c)(3)(A)(ii) (8 U.S.C.
1252a(b)(3), 1252a(c)(3)(A)(ii)), as amended by section
671(b)(13) of this division but before redesignation as section 238 by subsection (b)(5), are each amended by striking
‘‘106’’ and inserting ‘‘242’’.
(B) Sections 210(e)(3)(A) and 245A(f)(4)(A) (8 U.S.C.
1160(e)(3)(A), 1255a(f)(4)(A)) are amended by inserting ‘‘(as
in effect before October 1, 1996)’’ after ‘‘106’’.
(C)
Section
242A(c)(3)(A)(iii)
(8
U.S.C.
1252a(c)(3)(A)(iii)), as amended by section 671(b)(13) of this
division but before redesignation as section 238 by subsection (b)(5), is amended by striking ‘‘106(a)(1)’’ and inserting ‘‘242(b)(1)’’.
(3) REFERENCES TO SECTION 236.—
(A) Sections 205 and 209(a)(1) (8 U.S.C. 1155,
1159(a)(1)) are each amended by striking ‘‘236’’ and inserting ‘‘240’’.
(B) Section 4113(c) of title 18, United States Code,
is amended by striking ‘‘1226 of title 8, United States
Code’’ and inserting ‘‘240 of the Immigration and Nationality Act’’.
(4) REFERENCES TO SECTION 237.—
(A) Section 209(a)(1) (8 U.S.C. 1159(a)(1)) is amended
by striking ‘‘237’’ and inserting ‘‘241’’.
(B) Section 212(d)(7) (8 U.S.C. 1182(d)(7)) is amended
by striking ‘‘237(a)’’ and inserting ‘‘241(c)’’.

8 USC 1182,
1221, 1224 note,
1252a, 1254a
note, 1255a note,
1321, 1356, 1364,
1531; 42 USC
402.

110 STAT. 3009–623

8 USC 1252 note.

8 USC 1252 note.
8 USC 1252 note.

8 USC 1254a
note.
8 USC 1254b
note.

8 USC 1253 note.

PUBLIC LAW 104–208—SEPT. 30, 1996
(C) Section 280(a) (8 U.S.C. 1330(a)) is amended by
striking ‘‘237, 239, 243’’ and inserting ‘‘234, 243(c)(2)’’.
(5) REFERENCES TO SECTION 242.—
(A)(i) Sections 214(d), 252(b), and 287(f)(1) (8 U.S.C.
1184(d), 1282(b), 1357(f)(1)) are each amended by striking
‘‘242’’ and inserting ‘‘240’’.
(ii) Subsection (c)(4) of section 242A (8 U.S.C. 1252a),
as amended by section 671(b)(13) of this division but before
redesignation as section 238 by subsection (b)(5), are each
amended by striking ‘‘242’’ and inserting ‘‘240’’.
(iii) Section 245A(a)(1)(B) (8 U.S.C. 1255a(a)(1)(B)) is
amended by inserting ‘‘(as in effect before October 1, 1996)’’
after ‘‘242’’.
(iv) Section 4113 of title 18, United States Code, is
amended—
(I) in subsection (a), by striking ‘‘section 1252(b)
or section 1254(e) of title 8, United States Code,’’ and
inserting ‘‘section 240B of the Immigration and
Nationality Act’’; and
(II) in subsection (b), by striking ‘‘section 1252
of title 8, United States Code,’’ and inserting ‘‘section
240 of the Immigration and Nationality Act’’.
(B) Section 130002(a) of Public Law 103–322, as
amended by section 345 of this division, is amended by
striking ‘‘242(a)(3)(A)’’ and inserting ‘‘236(d)’’.
(C) Section 242A(b)(1) (8 U.S.C. 1252a(b)(1)), before
redesignation as section 238 by section 308(b)(5) of this
division, is amended by striking ‘‘242(b)’’ and inserting
‘‘240’’.
(D)
Section
242A(c)(2)(D)(ii)
(8
U.S.C.
1252a(c)(2)(D)(ii)), as amended by section 671(b)(13) of this
division but before redesignation as section 238 by subsection (b)(5), is amended by striking ‘‘242(b)’’ and inserting
‘‘240’’.
(E) Section 1821(e) of title 28, United States Code,
is amended by striking ‘‘242(b)’’ and inserting ‘‘240’’.
(F) Section 130007(a) of Public Law 103–322 is amended by striking ‘‘242(i)’’ and inserting ‘‘239(d)’’.
(G) Section 20301(c) of Public Law 103–322 is amended
by striking ‘‘242(j)(5)’’ and ‘‘242(j)’’ and inserting ‘‘241(h)(5)’’
and ‘‘241(h)’’, respectively.
(6) REFERENCES TO SECTION 242B.—
(A) Section 303(d)(2) of the Immigration Act of 1990
is amended by striking ‘‘242B’’ and inserting ‘‘240(b)(5)’’.
(B) Section 545(g)(1)(B) of the Immigration Act of 1990
is amended by striking ‘‘242B(a)(4)’’ and inserting
‘‘239(a)(4)’’.
(7) REFERENCES TO SECTION 243.—
(A) Section 214(d) (8 U.S.C. 1184(d)) is amended by
striking ‘‘243’’ and inserting ‘‘241’’.
(B) Section 504(k)(2) (8 U.S.C. 1534(k)(2)) is amended
by striking ‘‘withholding of deportation under section
243(h)’’ and inserting ‘‘by withholding of removal under
section 241(b)(3)’’.
(C)(i) Section 315(c) of the Immigration Reform and
Control Act of 1986 is amended by striking ‘‘243(g)’’ and
‘‘1253(g)’’and inserting ‘‘243(d)’’ and ‘‘1253(d)’’ respectively.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–624

(ii) Section 702(b) of the Departments of Commerce,
Justice, and State, the Judiciary, and Related Agencies
Appropriations Act, 1988 is amended by striking ‘‘243(g)’’
and inserting ‘‘243(d)’’.
(iii) Section 903(b) of Public Law 100–204 is amended
by striking ‘‘243(g)’’ and inserting ‘‘243(d)’’.
(D)(i) Section 6(f)(2)(F) of the Food Stamp Act of 1977
(7 U.S.C. 2015(f)(2)(F)) is amended by striking ‘‘243(h)’’
and inserting ‘‘241(b)(3)’’.
(ii) Section 214(a)(5) of the Housing and Community
Development Act of 1980 (42 U.S.C. 1436a(a)(5)) is amended by striking ‘‘243(h)’’ and inserting ‘‘241(b)(3)’’.
(E)(i) Subsection (c)(2)(B)(ii) of section 244A (8 U.S.C.
1254a), before redesignated as section 244 by section
308(b)(7), is amended by striking ‘‘243(h)(2)’’ and inserting
‘‘208(b)(2)(A)’’.
(ii) Section 301(e)(2) of the Immigration Act of 1990
is amended by striking ‘‘243(h)(2)’’ and inserting
‘‘208(b)(2)(A)’’.
(F) Section 316(f) (8 U.S.C. 1427(f)) is amended by
striking ‘‘subparagraphs (A) through (D) of paragraph
243(h)(2)’’ and inserting ‘‘clauses (i) through (v) of section
208(b)(2)(A)’’.
(8) REFERENCES TO SECTION 244.—
(A)(i) Section 201(b)(1)(D) (8 U.S.C. 1151(b)(1)(D)) and
subsection (e) of section 244A (8 U.S.C. 1254a), before
redesignation as section 244 by section 308(b)(7) of this
division, are each amended by striking ‘‘244(a)’’ and inserting ‘‘240A(a)’’.
(ii) Section 304(c)(1)(B) of the Miscellaneous and Technical Immigration and Naturalization Amendments of 1991
(Public Law 102–232) is amended by striking ‘‘244(a)’’ and
inserting ‘‘240A(a)’’.
(B) Section 504(k)(3) (8 U.S.C. 1534(k)(3)) is amended
by striking ‘‘suspension of deportation under subsection
(a) or (e) of section 244’’ and inserting ‘‘cancellation of
removal under section 240A’’.
(C) Section 304(c)(1)(B) of the Miscellaneous and Technical Immigration and Naturalization Amendments of 1991
(Public Law 102–232) is amended by striking ‘‘244(b)(2)’’
and inserting ‘‘240A(b)(2)’’.
(D) Section 364(a)(2) of this division is amended by
striking ‘‘244(a)(3)’’ and inserting ‘‘240A(a)(3)’’.
(E) Section 431(c)(1)(B)(iii) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, as
added by section 501 of this division, is amended by striking
‘‘suspension of deportation and adjustment of status pursuant to section 244(a)(3) of such Act’’ and inserting ‘‘cancellation of removal under section 240A of such Act’’.
(9) REFERENCES TO CHAPTER 5.—
(A) Sections 266(b), 266(c), and 291 (8 U.S.C. 1306(b),
1306(c), 1361) are each amended by striking ‘‘chapter 5’’
and inserting ‘‘chapter 4’’.
(B) Section 6(b) of the Act of August 1, 1956 (50 U.S.C.
855(b)) is amended by striking ‘‘chapter 5, title II, of the

8 USC 1201 note.
8 USC 1201 note.

8 USC 1255a
note.

8 USC 1254a
note.

8 USC 1254a
note.
8 USC 1367.

8 USC 1641.

110 STAT. 3009–625

8 USC 1182.

8 USC 1255.

8 USC 1259.

8 USC 1324c.

8 USC 1252 note.
8 USC 1368.

8 USC 1105a,
1182, 1252,
1252a.

PUBLIC LAW 104–208—SEPT. 30, 1996

Immigration and Nationality Act (66 Stat. 163)’’ and inserting ‘‘chapter 4 of title II of the Immigration and Nationality
Act’’.
(10) MISCELLANEOUS CROSS-REFERENCE CORRECTIONS FOR
NEWLY ADDED PROVISIONS.—
(A) Section 212(h), as amended by section 301(h) of
this division, is amended by striking ‘‘section 212(c)’’ and
inserting ‘‘paragraphs (1) and (2) of section 240A(a)’’.
(B) Section 245(c)(6), as amended by section 332(d)
of this division, is amended by striking ‘‘241(a)(4)(B)’’ and
inserting ‘‘237(a)(4)(B)’’.
(C) Section 249(d), as amended by section 332(e) of
this division, is amended by striking ‘‘241(a)(4)(B)’’ and
inserting ‘‘237(a)(4)(B)’’.
(D) Section 274C(d)(7), as added by section 212(d) of
this division, is amended by striking ‘‘withholding of deportation under section 243(h)’’ and inserting ‘‘withholding
of removal under section 241(b)(3)’’.
(E) Section 3563(b)(21) of title 18, United States Code,
as inserted by section 374(b) of this division, is amended
by striking ‘‘242A(d)(5)’’ and inserting ‘‘238(d)(5)’’.
(F) Section 130007(a) of the Violent Crime Control
and Law Enforcement Act of 1994 (Public Law 103–322),
as amended by section 671(a)(6) of this division, is amended
by striking ‘‘242A(a)(3)’’ and inserting ‘‘238(a)(3)’’.
(G) Section 386(b) of this division is amended by striking ‘‘excludable’’ and ‘‘EXCLUDABLE’’ and inserting ‘‘inadmissible’’ and ‘‘INADMISSIBLE’’, respectively, each place each
appears.
(H) Subsections (a), (c), (d), (g), and (h) of section
440 of the Antiterrorism and Effective Death Penalty Act
of 1996 (Public Law 104–132), as amended by section 306(d)
of this division, are amended by striking ‘‘241(a)(2)(A)(ii)’’
and ‘‘241(a)(2)(A)(i)’’ and inserting ‘‘237(a)(2)(A)(ii)’’ and
‘‘237(a)(2)(A)(i)’’, respectively.
SEC. 309. EFFECTIVE DATES; TRANSITION.

8 USC 1101 note.

(a) IN GENERAL.—Except as provided in this section and sections 303(b)(2), 306(c), 308(d)(2)(D), or 308(d)(5) of this division,
this subtitle and the amendments made by this subtitle shall take
effect on the first day of the first month beginning more than
180 days after the date of the enactment of this Act (in this
title referred to as the ‘‘title III–A effective date’’).
(b) PROMULGATION OF REGULATIONS.—The Attorney General
shall first promulgate regulations to carry out this subtitle by
not later than 30 days before the title III–A effective date.
(c) TRANSITION FOR ALIENS IN PROCEEDINGS.—
(1) GENERAL RULE THAT NEW RULES DO NOT APPLY.—Subject
to the succeeding provisions of this subsection, in the case
of an alien who is in exclusion or deportation proceedings
as of the title III–A effective date—
(A) the amendments made by this subtitle shall not
apply, and
(B) the proceedings (including judicial review thereof)
shall continue to be conducted without regard to such
amendments.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–626

(2) ATTORNEY GENERAL OPTION TO ELECT TO APPLY NEW
PROCEDURES.—In a case described in paragraph (1) in which
an evidentiary hearing under section 236 or 242 and 242B
of the Immigration and Nationality Act has not commenced
as of the title III–A effective date, the Attorney General may
elect to proceed under chapter 4 of title II of such Act (as
amended by this subtitle). The Attorney General shall provide
notice of such election to the alien involved not later than
30 days before the date any evidentiary hearing is commenced.
If the Attorney General makes such election, the notice of
hearing provided to the alien under section 235 or 242(a) of
such Act shall be valid as if provided under section 239 of
such Act (as amended by this subtitle) to confer jurisdiction
on the immigration judge.
(3) ATTORNEY GENERAL OPTION TO TERMINATE AND REINITIATE PROCEEDINGS.—In the case described in paragraph (1),
the Attorney General may elect to terminate proceedings in
which there has not been a final administrative decision and
to reinitiate proceedings under chapter 4 of title II the Immigration and Nationality Act (as amended by this subtitle). Any
determination in the terminated proceeding shall not be binding
in the reinitiated proceeding.
(4) TRANSITIONAL CHANGES IN JUDICIAL REVIEW.—In the
case described in paragraph (1) in which a final order of exclusion or deportation is entered more than 30 days after the
date of the enactment of this Act, notwithstanding any provision
of section 106 of the Immigration and Nationality Act (as in
effect as of the date of the enactment of this Act) to the
contrary—
(A) in the case of judicial review of a final order of
exclusion, subsection (b) of such section shall not apply
and the action for judicial review shall be governed by
the provisions of subsections (a) and (c) of such in the
same manner as they apply to judicial review of orders
of deportation;
(B) a court may not order the taking of additional
evidence under section 2347(c) of title 28, United States
Code;
(C) the petition for judicial review must be filed not
later than 30 days after the date of the final order of
exclusion or deportation;
(D) the petition for review shall be filed with the court
of appeals for the judicial circuit in which the administrative proceedings before the special inquiry officer or
immigration judge were completed;
(E) there shall be no appeal of any discretionary decision under section 212(c), 212(h), 212(i), 244, or 245 of
the Immigration and Nationality Act (as in effect as of
the date of the enactment of this Act);
(F) service of the petition for review shall not stay
the deportation of an alien pending the court’s decision
on the petition, unless the court orders otherwise; and
(G) there shall be no appeal permitted in the case
of an alien who is inadmissible or deportable by reason
of having committed a criminal offense covered in section
212(a)(2) or section 241(a)(2)(A)(iii), (B), (C), or (D) of the
Immigration and Nationality Act (as in effect as of the

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PUBLIC LAW 104–208—SEPT. 30, 1996

date of the enactment of this Act), or any offense covered
by section 241(a)(2)(A)(ii) of such Act (as in effect on such
date) for which both predicate offenses are, without regard
to their date of commission, otherwise covered by section
241(a)(2)(A)(i) of such Act (as so in effect).
(5) TRANSITIONAL RULE WITH REGARD TO SUSPENSION OF
DEPORTATION.—Paragraphs (1) and (2) of section 240A(d) of
the Immigration and Nationality Act (relating to continuous
residence or physical presence) shall apply to notices to appear
issued before, on, or after the date of the enactment of this
Act.
(6) TRANSITION FOR CERTAIN FAMILY UNITY ALIENS.—The
Attorney General may waive the application of section 212(a)(9)
of the Immigration and Nationality Act, as inserted by section
301(b)(1) of this division, in the case of an alien who is provided
benefits under the provisions of section 301 of the Immigration
Act of 1990 (relating to family unity).
(7) LIMITATION ON SUSPENSION OF DEPORTATION.—The
Attorney General may not suspend the deportation and adjust
the status under section 244 of the Immigration and Nationality
Act of more than 4,000 aliens in any fiscal year (beginning
after the date of the enactment of this Act). The previous
sentence shall apply regardless of when an alien applied for
such suspension and adjustment.
(d) TRANSITIONAL REFERENCES.—For purposes of carrying out
the Immigration and Nationality Act, as amended by this subtitle—
(1) any reference in section 212(a)(1)(A) of such Act to
the term ‘‘inadmissible’’ is deemed to include a reference to
the term ‘‘excludable’’, and
(2) any reference in law to an order of removal shall be
deemed to include a reference to an order of exclusion and
deportation or an order of deportation.
(e) TRANSITION.—No period of time before the date of the enactment of this Act shall be included in the period of 1 year described
in section 212(a)(6)(B)(i) of the Immigration and Nationality Act
(as amended by section 301(c) of this division).

Subtitle B—Criminal Alien Provisions
SEC. 321. AMENDED DEFINITION OF AGGRAVATED FELONY.

(a) IN GENERAL.—Section 101(a)(43) (8 U.S.C. 1101(a)(43)), as
amended by section 441(e) of the Antiterrorism and Effective Death
Penalty Act of 1996 (P.L. 104–132), is amended—
(1) in subparagraph (A), by inserting ‘‘, rape, or sexual
abuse of a minor’’ after ‘‘murder’’;
(2) in subparagraph (D), by striking ‘‘$100,000’’ and inserting ‘‘$10,000’’;
(3) in subparagraphs (F), (G), (N), and (P), by striking
‘‘is at least 5 years’’ each place it appears and inserting ‘‘at
least one year’’;
(4) in subparagraph (J), by striking ‘‘sentence of 5 years’
imprisonment’’ and inserting ‘‘sentence of one year imprisonment’’;
(5) in subparagraph (K)(ii), by inserting ‘‘if committed’’
before ‘‘for commercial advantage’’;
(6) in subparagraph (L)—

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110 STAT. 3009–628

(A) by striking ‘‘or’’ at the end of clause (i),
(B) by inserting ‘‘or’’ at the end of clause (ii), and
(C) by adding at the end the following new clause:
‘‘(iii) section 601 of the National Security Act of
1947 (relating to protecting the identity of undercover
agents);’’;
(7) in subparagraph (M), by striking ‘‘$200,000’’ each place
it appears and inserting ‘‘$10,000’’;
(8) in subparagraph (N), by striking ‘‘for which the term’’
and all that follows and inserting the following: ‘‘, except in
the case of a first offense for which the alien has affirmatively
shown that the alien committed the offense for the purpose
of assisting, abetting, or aiding only the alien’s spouse, child,
or parent (and no other individual) to violate a provision of
this Act’’;
(9) in subparagraph (P), by striking ‘‘18 months’’ and inserting ‘‘12 months, except in the case of a first offense for which
the alien has affirmatively shown that the alien committed
the offense for the purpose of assisting, abetting, or aiding
only the alien’s spouse, child, or parent (and no other individual)
to violate a provision of this Act’’;
(10) in subparagraph (R), by striking ‘‘for which a sentence
of 5 years’ imprisonment or more may be imposed’’ and inserting
‘‘for which the term of imprisonment is at least one year’’;
and
(11) in subparagraph (S), by striking ‘‘for which a sentence
of 5 years’ imprisonment or more may be imposed’’ and inserting
‘‘for which the term of imprisonment is at least one year’’.
(b) EFFECTIVE DATE OF DEFINITION.—Section 101(a)(43) (8
U.S.C. 1101(a)(43)) is amended by adding at the end the following
new sentence: ‘‘Notwithstanding any other provision of law (including any effective date), the term applies regardless of whether
the conviction was entered before, on, or after the date of enactment
of this paragraph.’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply to actions taken on or after the date of the enactment
of this Act, regardless of when the conviction occurred, and shall
apply under section 276(b) of the Immigration and Nationality
Act only to violations of section 276(a) of such Act occurring on
or after such date.
SEC. 322. DEFINITION OF CONVICTION AND TERM OF IMPRISONMENT.

(a) DEFINITION.—
(1) IN GENERAL.—Section 101(a) (8 U.S.C. 1101(a)) is
amended by adding at the end the following new paragraph:
‘‘(48)(A) The term ‘conviction’ means, with respect to an alien,
a formal judgment of guilt of the alien entered by a court or,
if adjudication of guilt has been withheld, where—
‘‘(i) a judge or jury has found the alien guilty or the alien
has entered a plea of guilty or nolo contendere or has admitted
sufficient facts to warrant a finding of guilt, and
‘‘(ii) the judge has ordered some form of punishment, penalty, or restraint on the alien’s liberty to be imposed.
‘‘(B) Any reference to a term of imprisonment or a sentence
with respect to an offense is deemed to include the period of incarceration or confinement ordered by a court of law regardless of

8 USC 1101 note.

110 STAT. 3009–629

8 USC 1101 note.

PUBLIC LAW 104–208—SEPT. 30, 1996

any suspension of the imposition or execution of that imprisonment
or sentence in whole or in part.’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 101(a)(43) (8 U.S.C. 1101(a)(43)) is amended
by striking ‘‘imposed (regardless of any suspension of
imprisonment)’’ each place it appears in subparagraphs
(F), (G), (N), and (P).
(B) Section 212(a)(2)(B) (8 U.S.C. 1182(a)(2)(B)) is
amended by striking ‘‘actually imposed’’.
(b) REFERENCE TO PROOF PROVISIONS.—For provisions relating
to proof of convictions, see subparagraphs (B) and (C) of section
240(c)(3) of the Immigration and Nationality Act, as inserted by
section 304(a)(3) of this division.
(c) EFFECTIVE DATE.—The amendments made by subsection
(a) shall apply to convictions and sentences entered before, on,
or after the date of the enactment of this Act. Subparagraphs
(B) and (C) of section 240(c)(3) of the Immigration and Nationality
Act, as inserted by section 304(a)(3) of this division, shall apply
to proving such convictions.
SEC. 323. AUTHORIZING REGISTRATION OF ALIENS ON CRIMINAL
PROBATION OR CRIMINAL PAROLE.

Section 263(a) (8 U.S.C. 1303(a)) is amended by striking ‘‘and
(5)’’ and inserting ‘‘(5) aliens who are or have been on criminal
probation or criminal parole within the United States, and (6)’’.
SEC. 324. PENALTY FOR REENTRY OF DEPORTED ALIENS.

8 USC 1326 note.

(a) IN GENERAL.—Section 276(a)(1) (8 U.S.C. 1326(a)(1)) is
amended to read as follows:
‘‘(1) has been arrested and deported, has been excluded
and deported, or has departed the United States while an
order of exclusion or deportation is outstanding, and thereafter’’.
(b) TREATMENT OF STIPULATIONS.—The last sentence of section
276(b) (8 U.S.C. 1326(b)) is amended by inserting ‘‘(or not during)’’
after ‘‘during’’.
(c) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply to departures that occurred before, on, or after the
date of the enactment of this Act, but only with respect to entries
(and attempted entries) occurring on or after such date.
SEC. 325. CHANGE IN FILING REQUIREMENT.

Section 2424 of title 18, United States Code, is amended—
(1) in the first undesignated paragraph of subsection (a)—
(A) by striking ‘‘alien’’ each place it appears;
(B) by inserting after ‘‘individual’’ the first place it
appears the following: ‘‘, knowing or in reckless disregard
of the fact that the individual is an alien’’; and
(C) by striking ‘‘within three years after that individual
has entered the United States from any country, party
to the arrangement adopted July 25, 1902, for the suppression of the white-slave traffic’’;
(2) in the second undesignated paragraph of subsection
(a)—
(A) by striking ‘‘thirty’’ and inserting ‘‘five business’’;
and
(B) by striking ‘‘within three years after that individual
has entered the United States from any country, party

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110 STAT. 3009–630

to the said arrangement for the suppression of the whiteslave traffic,’’; and
(3) in the text following the third undesignated paragraph
of subsection (a), by striking ‘‘two’’ and inserting ‘‘10’’.
SEC. 326. CRIMINAL ALIEN IDENTIFICATION SYSTEM.

Subsection (a) of section 130002 of the Violent Crime Control
and Law Enforcement Act of 1994 (Public Law 103–322), as amended by section 432 of Public Law 104–132, is amended to read
as follows:
‘‘(a) OPERATION AND PURPOSE.—The Commissioner of Immigration and Naturalization shall, under the authority of section
242(a)(3)(A) of the Immigration and Nationality Act operate a criminal alien identification system. The criminal alien identification
system shall be used to assist Federal, State, and local law enforcement agencies in identifying and locating aliens who may be subject
to removal by reason of their conviction of aggravated felonies,
subject to prosecution under section 275 of such Act, not lawfully
present in the United States, or otherwise removable. Such system
shall include providing for recording of fingerprint records of aliens
who have been previously arrested and removed into appropriate
automated fingerprint identification systems.’’.

8 USC 1252 note.

SEC. 327. APPROPRIATIONS FOR CRIMINAL ALIEN TRACKING CENTER.

Section 130002(b) of the Violent Crime Control and Law
Enforcement Act of 1994 (8 U.S.C. 1252 note) is amended—
(1) by inserting ‘‘and’’ after ‘‘1996;’’, and
(2) by striking paragraph (2) and all that follows through
the period at the end and inserting the following:
‘‘(2) $5,000,000 for each of fiscal years 1997 through 2001.’’.
SEC. 328. PROVISIONS RELATING TO STATE CRIMINAL ALIEN ASSISTANCE PROGRAM.

(a) MODIFICATION OF AUTHORITY.—
(1) IN GENERAL.—Section 241(i), as redesignated by section
306(a)(1) of this division, is amended—
(A) in paragraph (3)(A), by striking ‘‘felony and sentenced to a term of imprisonment’’ and inserting ‘‘felony
or two or more misdemeanors’’, and
(B) by adding at the end the following new paragraph:
‘‘(6) To the extent of available appropriations, funds otherwise made available under this section with respect to a State
(or political subdivision, including a municipality) for incarceration of an undocumented criminal alien may, at the discretion
of the recipient of the funds, be used for the costs of imprisonment of such alien in a State, local, or municipal prison or
jail.’’.
(2) EFFECTIVE DATE.—The amendment made by paragraph
(1) shall apply beginning with fiscal year 1997.
(b) SENSE OF THE CONGRESS WITH RESPECT TO PROGRAM.—
(1) FINDINGS.—The Congress finds as follows:
(A) Of the $130,000,000 appropriated in fiscal year
1995 for the State Criminal Alien Assistance Program,
the Department of Justice disbursed the first $43,000,000
to States on October 6, 1994, 32 days before the 1994
general election, and then failed to disburse the remaining
$87,000,000 until January 31, 1996, 123 days after the
end of fiscal year 1995.

8 USC 1231.

8 USC 1231 note.

110 STAT. 3009–631

PUBLIC LAW 104–208—SEPT. 30, 1996

(B) While H.R. 2880, the continuing appropriation
measure funding certain operations of the Federal Government from January 26, 1996 to March 15, 1996, included
$66,000,000 to reimburse States for the cost of incarcerating documented illegal immigrant felons, the Department
of Justice failed to disburse any of the funds to the States
during the period of the continuing appropriation.
(2) SENSE OF THE CONGRESS.—It is the sense of the Congress that—
(A) the Department of Justice was disturbingly slow
in disbursing fiscal year 1995 funds under the State Criminal Alien Assistance Program to States after the initial
grants were released just prior to the 1994 election; and
(B) the Attorney General should make it a high priority
to expedite the disbursement of Federal funds intended
to reimburse States for the cost of incarcerating illegal
immigrants, aiming for all State Criminal Alien Assistance
Program funds to be disbursed during the fiscal year for
which they are appropriated.
SEC.

329.

DEMONSTRATION PROJECT FOR IDENTIFICATION OF
ILLEGAL ALIENS IN INCARCERATION FACILITY OF ANAHEIM, CALIFORNIA.

(a) AUTHORITY.—The Attorney General shall conduct a project
demonstrating the feasibility of identifying, from among the individuals who are incarcerated in local governmental prison facilities
prior to arraignment on criminal charges, those individuals who
are aliens unlawfully present in the United States.
(b) DESCRIPTION OF PROJECT.—The project authorized by subsection (a) shall include—
(1) the detail to incarceration facilities within the city
of Anaheim, California and the county of Ventura, California,
of an employee of the Immigration and Naturalization Service
who has expertise in the identification of aliens unlawfully
in the United States, and
(2) provision of funds sufficient to provide for—
(A) access for such employee to records of the Service
necessary to identify such aliens, and
(B) in the case of an individual identified as such
an alien, pre-arraignment reporting to the court regarding
the Service’s intention to remove the alien from the United
States.
(c) TERMINATION.—The authority under this section shall cease
to be effective 6 months after the date of the enactment of this
Act.
18 USC 4100
note.

SEC. 330. PRISONER TRANSFER TREATIES.

(a) NEGOTIATIONS WITH OTHER COUNTRIES.—(1) Congress
advises the President to begin to negotiate and renegotiate, not
later than 90 days after the date of enactment of this Act, bilateral
prisoner transfer treaties, providing for the incarceration, in the
country of the alien’s nationality, of any alien who—
(A) is a national of a country that is party to such a
treaty; and
(B) has been convicted of a criminal offense under Federal
or State law and who—
(i) is not in lawful immigration status in the United
States, or

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110 STAT. 3009–632

(ii) on the basis of conviction for a criminal offense
under Federal or State law, or on any other basis, is
subject to deportation or removal under the Immigration
and Nationality Act,
for the duration of the prison term to which the alien was sentenced
for the offense referred to in subparagraph (B). Any such agreement
may provide for the release of such alien pursuant to parole procedures of that country.
(2) In entering into negotiations under paragraph (1), the President may consider providing for appropriate compensation, subject
to the availability of appropriations, in cases where the United
States is able to independently verify the adequacy of the sites
where aliens will be imprisoned and the length of time the alien
is actually incarcerated in the foreign country under such a treaty.
(b) SENSE OF CONGRESS.—It is the sense of the Congress that—
(1) the focus of negotiations for such agreements should
be—
(A) to expedite the transfer of aliens unlawfully in
the United States who are (or are about to be) incarcerated
in United States prisons,
(B) to ensure that a transferred prisoner serves the
balance of the sentence imposed by the United States
courts,
(C) to eliminate any requirement of prisoner consent
to such a transfer, and
(D) to allow the Federal Government or the States
to keep their original prison sentences in force so that
transferred prisoners who return to the United States prior
to the completion of their original United States sentences
can be returned to custody for the balance of their prisons
sentences;
(2) the Secretary of State should give priority to concluding
an agreement with any country for which the President determines that the number of aliens described in subsection (a)
who are nationals of that country in the United States represents a significant percentage of all such aliens in the United
States; and
(3) no new treaty providing for the transfer of aliens from
Federal, State, or local incarceration facilities to a foreign incarceration facility should permit the alien to refuse the transfer.
(c) PRISONER CONSENT.—Notwithstanding any other provision
of law, except as required by treaty, the transfer of an alien from
a Federal, State, or local incarceration facility under an agreement
of the type referred to in subsection (a) shall not require consent
of the alien.
(d) ANNUAL REPORT.—Not later than 90 days after the date
of the enactment of this Act, and annually thereafter, the Attorney
General shall submit a report to the Committees on the Judiciary
of the House of Representatives and of the Senate stating whether
each prisoner transfer treaty to which the United States is a party
has been effective in the preceding 12 months in bringing about
the return of deportable incarcerated aliens to the country of which
they are nationals and in ensuring that they serve the balance
of their sentences.
(e) TRAINING FOREIGN LAW ENFORCEMENT PERSONNEL.—(1)
Subject to paragraph (2), the President shall direct the Border
Patrol Academy and the Customs Service Academy to enroll for

110 STAT. 3009–633

PUBLIC LAW 104–208—SEPT. 30, 1996

training an appropriate number of foreign law enforcement personnel, and shall make appointments of foreign law enforcement
personnel to such academies, as necessary to further the following
United States law enforcement goals:
(A) Preventing of drug smuggling and other cross-border
criminal activity.
(B) Preventing illegal immigration.
(C) Preventing the illegal entry of goods into the United
States (including goods the sale of which is illegal in the United
States, the entry of which would cause a quota to be exceeded,
or the appropriate duty or tariff for which has not been paid).
(2) The appointments described in paragraph (1) shall be made
only to the extent there is capacity in such academies beyond
what is required to train United States citizens needed in the
Border Patrol and Customs Service, and only of personnel from
a country with which the prisoner transfer treaty has been stated
to be effective in the most recent report referred to in subsection
(d).
(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated such sums as may be necessary to carry out
this section.
SEC. 331. PRISONER TRANSFER TREATIES STUDY.

(a) REPORT TO CONGRESS.—Not later than 180 days after the
date of the enactment of this Act, the Secretary of State and
the Attorney General shall submit to the Committees on the
Judiciary of the House of Representatives and of the Senate a
report that describes the use and effectiveness of the prisoner
transfer treaties with the three countries with the greatest number
of their nationals incarcerated in the United States in removing
from the United States such incarcerated nationals.
(b) USE OF TREATY.—The report under subsection (a) shall
include—
(1) the number of aliens convicted of a criminal offense
in the United States since November 30, 1977, who would
have been or are eligible for transfer pursuant to the treaties;
(2) the number of aliens described in paragraph (1) who
have been transferred pursuant to the treaties;
(3) the number of aliens described in paragraph (2) who
have been incarcerated in full compliance with the treaties;
(4) the number of aliens who are incarcerated in a penal
institution in the United States who are eligible for transfer
pursuant to the treaties; and
(5) the number of aliens described in paragraph (4) who
are incarcerated in Federal, State, and local penal institutions
in the United States.
(c) RECOMMENDATIONS.—The report under subsection (a) shall
include the recommendations of the Secretary of State and the
Attorney General to increase the effectiveness and use of, and
full compliance with, the treaties. In considering the recommendations under this subsection, the Secretary and the Attorney General
shall consult with such State and local officials in areas disproportionately impacted by aliens convicted of criminal offenses as the
Secretary and the Attorney General consider appropriate. Such
recommendations shall address—

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110 STAT. 3009–634

(1) changes in Federal laws, regulations, and policies affecting the identification, prosecution, and deportation of aliens
who have committed criminal offenses in the United States;
(2) changes in State and local laws, regulations, and policies
affecting the identification, prosecution, and deportation of
aliens who have committed a criminal offense in the United
States;
(3) changes in the treaties that may be necessary to
increase the number of aliens convicted of criminal offenses
who may be transferred pursuant to the treaties;
(4) methods for preventing the unlawful reentry into the
United States of aliens who have been convicted of criminal
offenses in the United States and transferred pursuant to the
treaties;
(5) any recommendations by appropriate officials of the
appropriate government agencies of such countries regarding
programs to achieve the goals of, and ensure full compliance
with, the treaties;
(6) whether the recommendations under this subsection
require the renegotiation of the treaties; and
(7) the additional funds required to implement each recommendation under this subsection.
SEC. 332. ANNUAL REPORT ON CRIMINAL ALIENS.

8 USC 1366.

Not later than 12 months after the date of the enactment
of this Act, and annually thereafter, the Attorney General shall
submit to the Committees on the Judiciary of the House of Representatives and of the Senate a report detailing—
(1) the number of illegal aliens incarcerated in Federal
and State prisons for having committed felonies, stating the
number incarcerated for each type of offense;
(2) the number of illegal aliens convicted of felonies in
any Federal or State court, but not sentenced to incarceration,
in the year before the report was submitted, stating the number
convicted for each type of offense;
(3) programs and plans underway in the Department of
Justice to ensure the prompt removal from the United States
of criminal aliens subject to removal; and
(4) methods for identifying and preventing the unlawful
reentry of aliens who have been convicted of criminal offenses
in the United States and removed from the United States.
SEC. 333. PENALTIES FOR CONSPIRING WITH OR ASSISTING AN ALIEN
TO COMMIT AN OFFENSE UNDER THE CONTROLLED SUBSTANCES IMPORT AND EXPORT ACT.

(a) REVIEW OF GUIDELINES.—Not later than 6 months after
the date of the enactment of this Act, the United States Sentencing
Commission shall conduct a review of the guidelines applicable
to an offender who conspires with, or aids or abets, a person
who is not a citizen or national of the United States in committing
any offense under section 1010 of the Controlled Substance Import
and Export Act (21 U.S.C. 960).
(b) REVISION OF GUIDELINES.—Following such review, pursuant
to section 994(p) of title 28, United States Code, the Commission
shall promulgate sentencing guidelines or amend existing sentencing guidelines to ensure an appropriately stringent sentence for
such offenders.

28 USC 994 note.

110 STAT. 3009–635
28 USC 994 note.

PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 334. ENHANCED PENALTIES FOR FAILURE TO DEPART, ILLEGAL
REENTRY, AND PASSPORT AND VISA FRAUD.

(a) FAILING TO DEPART.—The United States Sentencing
Commission shall promptly promulgate, pursuant to section 994
of title 28, United States Code, amendments to the sentencing
guidelines to make appropriate increases in the base offense level
for offenses under section 242(e) and 276(b) of the Immigration
and Nationality Act (8 U.S.C. 1252(e) and 1326(b)) to reflect the
amendments made by section 130001 of the Violent Crime Control
and Law Enforcement Act of 1994.
(b) PASSPORT AND VISA OFFENSES.—The United States Sentencing Commission shall promptly promulgate, pursuant to section
994 of title 28, United States Code, amendments to the sentencing
guidelines to make appropriate increases in the base offense level
for offenses under chapter 75 of title 18, United States Code to
reflect the amendments made by section 130009 of the Violent
Crime Control and Law Enforcement Act of 1994.

Subtitle C—Revision of Grounds for
Exclusion and Deportation
SEC. 341. PROOF OF VACCINATION REQUIREMENT FOR IMMIGRANTS.

(a) IN GENERAL.—Section 212(a)(1)(A) (8 U.S.C. 1182(a)(1)(A))
is amended—
(1) by redesignating clauses (ii) and (iii) as clauses (iii)
and (iv), respectively, and
(2) by inserting after clause (i) the following new clause:
‘‘(ii) who seeks admission as an immigrant, or who
seeks adjustment of status to the status of an alien
lawfully admitted for permanent residence, and who
has failed to present documentation of having received
vaccination against vaccine-preventable diseases,
which shall include at least the following diseases:
mumps, measles, rubella, polio, tetanus and diphtheria
toxoids, pertussis, influenza type B and hepatitis B,
and any other vaccinations against vaccine-preventable
diseases recommended by the Advisory Committee for
Immunization Practices,’’.
(b) WAIVER.—Section 212(g) (8 U.S.C. 1182(g)) is amended by
striking ‘‘, or’’ at the end of paragraph (1) and all that follows
and inserting a semicolon and the following:
‘‘in accordance with such terms, conditions, and controls, if
any, including the giving of bond, as the Attorney General,
in the discretion of the Attorney General after consultation
with the Secretary of Health and Human Services, may by
regulation prescribe;
‘‘(2) subsection (a)(1)(A)(ii) in the case of any alien—
‘‘(A) who receives vaccination against the vaccinepreventable disease or diseases for which the alien has
failed to present documentation of previous vaccination,
‘‘(B) for whom a civil surgeon, medical officer, or panel
physician (as those terms are defined by section 34.2 of
title 42 of the Code of Federal Regulations) certifies, according to such regulations as the Secretary of Health and

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110 STAT. 3009–636

Human Services may prescribe, that such vaccination
would not be medically appropriate, or
‘‘(C) under such circumstances as the Attorney General
provides by regulation, with respect to whom the requirement of such a vaccination would be contrary to the alien’s
religious beliefs or moral convictions; or
‘‘(3) subsection (a)(1)(A)(iii) in the case of any alien, in
accordance with such terms, conditions, and controls, if any,
including the giving of bond, as the Attorney General, in the
discretion of the Attorney General after consultation with the
Secretary of Health and Human Services, may by regulation
prescribe.’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply with respect to applications for immigrant visas or
for adjustment of status filed after September 30, 1996.

8 USC 1182 note.

SEC. 342. INCITEMENT OF TERRORIST ACTIVITY AND PROVISION OF
FALSE DOCUMENTATION TO TERRORISTS AS A BASIS
FOR EXCLUSION FROM THE UNITED STATES.

(a) IN GENERAL.—Section 212(a)(3)(B) (8 U.S.C. 1182(a)(3)(B))
is amended—
(1) by redesignating subclauses (III) and (IV) of clause
(i) as subclauses (IV) and (V), respectively;
(2) by inserting after subclause (II) of clause (i) the following new subclause:
‘‘(III) has, under circumstances indicating an
intention to cause death or serious bodily harm,
incited terrorist activity,’’; and
(3) in clause (iii)(III), by inserting ‘‘documentation or’’ before
‘‘identification’’;
(b) EFFECTIVE DATE.—The amendments made by subsection
(a) shall take effect on the date of the enactment of this Act
and shall apply to incitement regardless of when it occurs.
SEC. 343. CERTIFICATION REQUIREMENTS FOR FOREIGN HEALTHCARE WORKERS.

Section 212(a)(5) (8 U.S.C. 1182(a)(5)) is amended—
(1) by redesignating subparagraph (C) as subparagraph
(D), and
(2) by inserting after subparagraph (B) the following new
subparagraph:
‘‘(C) UNCERTIFIED FOREIGN HEALTH-CARE WORKERS.—
Any alien who seeks to enter the United States for the
purpose of performing labor as a health-care worker, other
than a physician, is excludable unless the alien presents
to the consular officer, or, in the case of an adjustment
of status, the Attorney General, a certificate from the
Commission on Graduates of Foreign Nursing Schools, or
a certificate from an equivalent independent credentialing
organization approved by the Attorney General in consultation with the Secretary of Health and Human Services,
verifying that—
‘‘(i) the alien’s education, training, license, and
experience—
‘‘(I) meet all applicable statutory and regulatory requirements for entry into the United
States under the classification specified in the
application;

8 USC 1182 note.

110 STAT. 3009–637

PUBLIC LAW 104–208—SEPT. 30, 1996
‘‘(II) are comparable with that required for
an American health-care worker of the same type;
and
‘‘(III) are authentic and, in the case of a
license, unencumbered;
‘‘(ii) the alien has the level of competence in oral
and written English considered by the Secretary of
Health and Human Services, in consultation with the
Secretary of Education, to be appropriate for health
care work of the kind in which the alien will be
engaged, as shown by an appropriate score on one
or more nationally recognized, commercially available,
standardized assessments of the applicant’s ability to
speak and write; and
‘‘(iii) if a majority of States licensing the profession
in which the alien intends to work recognize a test
predicting the success on the profession’s licensing or
certification examination, the alien has passed such
a test or has passed such an examination.
For purposes of clause (ii), determination of the standardized tests required and of the minimum scores that are
appropriate are within the sole discretion of the Secretary
of Health and Human Services and are not subject to
further administrative or judicial review.’’.

SEC. 344. REMOVAL OF ALIENS FALSELY CLAIMING UNITED STATES
CITIZENSHIP.

8 USC 1182 note.

(a) EXCLUSION OF ALIENS WHO HAVE FALSELY CLAIMED UNITED
STATES CITIZENSHIP.—Section 212(a)(6)(C) (8 U.S.C. 1182(a)(6)(C))
is amended—
(1) by redesignating clause (ii) as clause (iii), and
(2) by inserting after clause (i) the following new clause:
‘‘(ii) FALSELY CLAIMING CITIZENSHIP.—Any alien
who falsely represents, or has falsely represented, himself or herself to be a citizen of the United States
for any purpose or benefit under this Act (including
section 274A) or any other Federal or State law is
excludable.’’.
(b) DEPORTATION OF ALIENS WHO HAVE FALSELY CLAIMED
UNITED STATES CITIZENSHIP.—Section 241(a)(3) (8 U.S.C.
1251(a)(3)) is amended by adding at the end the following new
subparagraph:
‘‘(D) FALSELY CLAIMING CITIZENSHIP.—Any alien who
falsely represents, or has falsely represented, himself to
be a citizen of the United States for any purpose or benefit
under this Act (including section 274A) or any Federal
or State law is deportable.’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply to representations made on or after the date of the
enactment of this Act.
SEC. 345. WAIVER OF EXCLUSION AND DEPORTATION GROUND FOR
CERTAIN SECTION 274C VIOLATORS.

(a) EXCLUSION GROUNDS.—Section 212 (8 U.S.C. 1182) is
amended—
(1) by amending subparagraph (F) of subsection (a)(6) to
read as follows:
‘‘(F) SUBJECT OF CIVIL PENALTY.—

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–638

‘‘(i) IN GENERAL.—An alien who is the subject of
a final order for violation of section 274C is inadmissible.
‘‘(ii) WAIVER AUTHORIZED.—For provision authorizing waiver of clause (i), see subsection (d)(12).’’; and
(2) by adding at the end of subsection (d) the following
new paragraph:
‘‘(12) The Attorney General may, in the discretion of the Attorney General for humanitarian purposes or to assure family unity,
waive application of clause (i) of subsection (a)(6)(F)—
‘‘(A) in the case of an alien lawfully admitted for permanent
residence who temporarily proceeded abroad voluntarily and
not under an order of deportation or removal and who is otherwise admissible to the United States as a returning resident
under section 211(b), and
‘‘(B) in the case of an alien seeking admission or adjustment
of status under section 201(b)(2)(A) or under section 203(a),
if no previous civil money penalty was imposed against the alien
under section 274C and the offense was committed solely to assist,
aid, or support the alien’s spouse or child (and not another individual). No court shall have jurisdiction to review a decision of the
Attorney General to grant or deny a waiver under this paragraph.’’.
(b) GROUND OF DEPORTATION.—Subparagraph (C) of section
241(a)(3) (8 U.S.C. 1251(a)(3)), before redesignation by section
305(a)(2) of this division, is amended to read as follows:
‘‘(C) DOCUMENT FRAUD.—
‘‘(i) IN GENERAL.—An alien who is the subject of
a final order for violation of section 274C is deportable.
‘‘(ii) WAIVER AUTHORIZED.—The Attorney General
may waive clause (i) in the case of an alien lawfully
admitted for permanent residence if no previous civil
money penalty was imposed against the alien under
section 274C and the offense was incurred solely to
assist, aid, or support the alien’s spouse or child (and
no other individual). No court shall have jurisdiction
to review a decision of the Attorney General to grant
or deny a waiver under this clause.’’.
SEC. 346. INADMISSIBILITY OF CERTAIN STUDENT VISA ABUSERS.

(a) IN GENERAL.—Section 212(a)(6) (8 U.S.C. 1182(a)(6)) is
amended by adding at the end the following new subparagraph:
‘‘(G) STUDENT VISA ABUSERS.—An alien who obtains
the status of a nonimmigrant under section 101(a)(15)(F)(i)
and who violates a term or condition of such status under
section 214(l) is excludable until the alien has been outside
the United States for a continuous period of 5 years after
the date of the violation.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply to aliens who obtain the status of a nonimmigrant
under section 101(a)(15)(F) of the Immigration and Nationality
Act after the end of the 60-day period beginning on the date of
the enactment of this Act, including aliens whose status as such
a nonimmigrant is extended after the end of such period.
SEC. 347. REMOVAL OF ALIENS WHO HAVE UNLAWFULLY VOTED.

(a) EXCLUSION OF ALIENS WHO HAVE UNLAWFULLY VOTED.—
Section 212(a)(10) (8 U.S.C. 1182(a)(10)), as redesignated by section

8 USC 1182 note.

110 STAT. 3009–639

8 USC 1182 note.

PUBLIC LAW 104–208—SEPT. 30, 1996

301(b) of this division, is amended by adding at the end the following
new subparagraph:
‘‘(D) UNLAWFUL VOTERS.—Any alien who has voted in
violation of any Federal, State, or local constitutional provision, statute, ordinance, or regulation is excludable.’’.
(b) DEPORTATION OF ALIENS WHO HAVE UNLAWFULLY VOTED.—
Section 241(a) (8 U.S.C. 1251(a)), before redesignation by section
305(a)(2) of this division, is amended by adding at the end the
following new paragraph:
‘‘(6) UNLAWFUL VOTERS.—Any alien who has voted in violation of any Federal, State, or local constitutional provision,
statute, ordinance, or regulation is deportable.’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply to voting occurring before, on, or after the date of
the enactment of this Act.
SEC. 348. WAIVERS FOR IMMIGRANTS CONVICTED OF CRIMES.

8 USC 1182 note.

(a) IN GENERAL.—Section 212(h) (8 U.S.C. 1182(h)) is amended
by adding at the end the following: ‘‘No waiver shall be granted
under this subsection in the case of an alien who has previously
been admitted to the United States as an alien lawfully admitted
for permanent residence if either since the date of such admission
the alien has been convicted of an aggravated felony or the alien
has not lawfully resided continuously in the United States for
a period of not less than 7 years immediately preceding the date
of initiation of proceedings to remove the alien from the United
States. No court shall have jurisdiction to review a decision of
the Attorney General to grant or deny a waiver under this subsection.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall be effective on the date of the enactment of this Act and
shall apply in the case of any alien who is in exclusion or deportation
proceedings as of such date unless a final administrative order
in such proceedings has been entered as of such date.
SEC. 349. WAIVER OF MISREPRESENTATION GROUND OF INADMISSIBILITY FOR CERTAIN ALIEN.

Subsection (i) of section 212 (8 U.S.C. 1182) is amended to
read as follows:
‘‘(i)(1) The Attorney General may, in the discretion of the Attorney General, waive the application of clause (i) of subsection
(a)(6)(C) in the case of an immigrant who is the spouse, son,
or daughter of a United States citizen or of an alien lawfully
admitted for permanent residence if it is established to the satisfaction of the Attorney General that the refusal of admission to the
United States of such immigrant alien would result in extreme
hardship to the citizen or lawfully resident spouse or parent of
such an alien.
‘‘(2) No court shall have jurisdiction to review a decision or
action of the Attorney General regarding a waiver under paragraph
(1).’’.
SEC. 350. OFFENSES OF DOMESTIC VIOLENCE AND STALKING AS
GROUND FOR DEPORTATION.

(a) IN GENERAL.—Section 241(a)(2) (8 U.S.C. 1251(a)(2)) is
amended by adding at the end the following:

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–640

‘‘(E) CRIMES OF DOMESTIC VIOLENCE, STALKING, OR VIOLATION OF PROTECTION ORDER, CRIMES AGAINST CHILDREN
AND .—
‘‘(i) DOMESTIC VIOLENCE, STALKING, AND CHILD
ABUSE.—Any alien who at any time after entry is convicted of a crime of domestic violence, a crime of stalking, or a crime of child abuse, child neglect, or child
abandonment is deportable. For purposes of this clause,
the term ‘crime of domestic violence’ means any crime
of violence (as defined in section 16 of title 18, United
States Code) against a person committed by a current
or former spouse of the person, by an individual with
whom the person shares a child in common, by an
individual who is cohabiting with or has cohabited
with the person as a spouse, by an individual similarly
situated to a spouse of the person under the domestic
or family violence laws of the jurisdiction where the
offense occurs, or by any other individual against a
person who is protected from that individual’s acts
under the domestic or family violence laws of the
United States or any State, Indian tribal government,
or unit of local government.
‘‘(ii) VIOLATORS OF PROTECTION ORDERS.—Any alien
who at any time after entry is enjoined under a protection order issued by a court and whom the court determines has engaged in conduct that violates the portion
of a protection order that involves protection against
credible threats of violence, repeated harassment, or
bodily injury to the person or persons for whom the
protection order was issued is deportable. For purposes
of this clause, the term ‘protection order’ means any
injunction issued for the purpose of preventing violent
or threatening acts of domestic violence, including temporary or final orders issued by civil or criminal courts
(other than support or child custody orders or provisions) whether obtained by filing an independent action
or as a pendente lite order in another proceeding.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply to convictions, or violations of court orders, occurring
after the date of the enactment of this Act.

8 USC 1227 note.

SEC. 351. CLARIFICATION OF DATE AS OF WHICH RELATIONSHIP
REQUIRED FOR WAIVER FROM EXCLUSION OR DEPORTATION FOR SMUGGLING.

(a) EXCLUSION.—Section 212(d)(11) (8 U.S.C. 1182(d)(11)) is
amended by inserting ‘‘an individual who at the time of such action
was’’ after ‘‘aided only’’.
(b)
DEPORTATION.—Section
241(a)(1)(E)(iii)
(8
U.S.C.
1251(a)(1)(E)(iii)) is amended by inserting ‘‘an individual who at
the time of the offense was’’ after ‘‘aided only’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply to applications for waivers filed before, on, or after
the date of the enactment of this Act, but shall not apply to
such an application for which a final determination has been made
as of the date of the enactment of this Act.

8 USC 1182 note.

110 STAT. 3009–641

PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 352. EXCLUSION OF FORMER CITIZENS WHO RENOUNCED CITIZENSHIP TO AVOID UNITED STATES TAXATION.

8 USC 1182 note.

(a) IN GENERAL.—Section 212(a)(10) (8 U.S.C. 1182(a)(10)), as
redesignated by section 301(b) of this division and as amended
by section 347(a) of this division, is amended by adding at the
end the following:
‘‘(E) FORMER CITIZENS WHO RENOUNCED CITIZENSHIP
TO AVOID TAXATION.—Any alien who is a former citizen
of the United States who officially renounces United States
citizenship and who is determined by the Attorney General
to have renounced United States citizenship for the purpose
of avoiding taxation by the United States is excludable.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply to individuals who renounce United States citizenship
on and after the date of the enactment of this Act.
SEC. 353. REFERENCES TO CHANGES ELSEWHERE IN DIVISION.

(a) DEPORTATION FOR HIGH SPEED FLIGHT.—For provision making high speed flight from an immigration checkpoint subject to
deportation, see section 108(c) of this division.
(b) INADMISSIBILITY OF ALIENS PREVIOUSLY REMOVED AND
UNLAWFULLY PRESENT.—For provision making aliens previously
removed and unlawfully present in the United States inadmissible,
see section 301(b) of this division.
(c) INADMISSIBILITY OF ILLEGAL ENTRANTS.—For provision revising the ground of inadmissibility for illegal entrants and immigration violators, see section 301(c) of this division.
(d) DEPORTATION FOR VISA VIOLATORS.—For provision revising
the ground of deportation for illegal entrants, see section 301(d)
of this division.
(e) LABOR CERTIFICATIONS FOR PROFESSIONAL ATHLETES.—For
provision providing for continued validity of labor certifications
and classification petitions for professional athletes, see section
624 of this division.

Subtitle D—Changes in Removal of Alien
Terrorist Provisions
SEC. 354. TREATMENT OF CLASSIFIED INFORMATION.

(a) LIMITATION ON PROVISION OF SUMMARIES; USE OF SPECIAL
ATTORNEYS IN CHALLENGES TO CLASSIFIED INFORMATION.—
(1) NO PROVISION OF SUMMARY IN CERTAIN CASES.—Section
504(e)(3)(D) (8 U.S.C. 1534(e)(3)(D)) is amended—
(A) in clause (ii), by inserting before the period at
the end the following: ‘‘unless the judge makes the findings
under clause (iii)’’, and
(B) by adding at the end the following new clause:
‘‘(iii) FINDINGS.—The findings described in this
clause are, with respect to an alien, that—
‘‘(I) the continued presence of the alien in the
United States would likely cause serious and irreparable harm to the national security or death or
serious bodily injury to any person, and
‘‘(II) the provision of the summary would likely
cause serious and irreparable harm to the national

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110 STAT. 3009–642

security or death or serious bodily injury to any
person.’’.
(2) SPECIAL CHALLENGE PROCEDURES.—Section 504(e)(3) (8
U.S.C. 1534(e)(3)) is amended by adding at the end the following
new subparagraphs:
‘‘(E) CONTINUATION OF HEARING WITHOUT SUMMARY.—
If a judge makes the findings described in subparagraph
(D)(iii)—
‘‘(i) if the alien involved is an alien lawfully admitted for permanent residence, the procedures described
in subparagraph (F) shall apply; and
‘‘(ii) in all cases the special removal hearing shall
continue, the Department of Justice shall cause to
be delivered to the alien a statement that no summary
is possible, and the classified information submitted
in camera and ex parte may be used pursuant to
this paragraph.
‘‘(F) SPECIAL PROCEDURES FOR ACCESS AND CHALLENGES
TO CLASSIFIED INFORMATION BY SPECIAL ATTORNEYS IN CASE
OF LAWFUL PERMANENT ALIENS.—
‘‘(i) IN GENERAL.—The procedures described in this

subparagraph are that the judge (under rules of the
removal court) shall designate a special attorney to
assist the alien—
‘‘(I) by reviewing in camera the classified
information on behalf of the alien, and
‘‘(II) by challenging through an in camera
proceeding the veracity of the evidence contained
in the classified information.
‘‘(ii) RESTRICTIONS ON DISCLOSURE.—A special
attorney receiving classified information under clause
(i)—
‘‘(I) shall not disclose the information to the
alien or to any other attorney representing the
alien, and
‘‘(II) who discloses such information in violation of subclause (I) shall be subject to a fine
under title 18, United States Code, imprisoned
for not less than 10 years nor more than 25 years,
or both.’’.
(3) APPEALS.—Section 505(c) (8 U.S.C. 1535(c)) is amended—
(A) in paragraph (1), by striking ‘‘The decision’’ and
inserting ‘‘Subject to paragraph (2), the decision’’;
(B) in paragraph (3)(D), by inserting before the period
at the end the following: ‘‘, except that in the case of
a review under paragraph (2) in which an alien lawfully
admitted for permanent residence was denied a written
summary of classified information under section 504(c)(3),
the Court of Appeals shall review questions of fact de
novo’’;
(C) by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively; and
(D) by inserting after paragraph (1) the following new
paragraph:
‘‘(2) AUTOMATIC APPEALS IN CASES OF PERMANENT RESIDENT
ALIENS IN WHICH NO SUMMARY PROVIDED.—

110 STAT. 3009–643

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(A) IN GENERAL.—Unless the alien waives the right
to a review under this paragraph, in any case involving
an alien lawfully admitted for permanent residence who
is denied a written summary of classified information under
section 504(e)(3) and with respect to which the procedures
described in section 504(e)(3)(F) apply, any order issued
by the judge shall be reviewed by the Court of Appeals
for the District of Columbia Circuit.
‘‘(B) USE OF SPECIAL ATTORNEY.—With respect to any
issue relating to classified information that arises in such
review, the alien shall be represented only by the special
attorney designated under section 504(e)(3)(F)(i) on behalf
of the alien.’’.
(4) ESTABLISHMENT OF PANEL OF SPECIAL ATTORNEYS.—
Section 502 (8 U.S.C. 1532) is amended by adding at the end
the following new subsection:
‘‘(e) ESTABLISHMENT OF PANEL OF SPECIAL ATTORNEYS.—The
removal court shall provide for the designation of a panel of attorneys each of whom—
‘‘(1) has a security clearance which affords the attorney
access to classified information, and
‘‘(2) has agreed to represent permanent resident aliens
with respect to classified information under section 504(e)(3)
in accordance with (and subject to the penalties under) this
title.’’.
(5) DEFINITION OF SPECIAL ATTORNEY.—Section 501 (8
U.S.C. 1531) is amended—
(A) by striking ‘‘and’’ at the end of paragraph (5),
(B) by striking the period at the end of paragraph
(6) and inserting ‘‘; and’’, and
(C) by adding at the end the following new paragraph:
‘‘(7) the term ‘special attorney’ means an attorney who
is on the panel established under section 502(e).’’.
(b) OTHER PROVISIONS RELATING TO CLASSIFIED INFORMATION.—
(1) INTRODUCTION OF CLASSIFIED INFORMATION.—Section
504(e) (8 U.S.C. 1534(e)) is amended—
(A) in paragraph (1)—
(i) by inserting after ‘‘(A)’’ the following: ‘‘the
Government is authorized to use in a removal proceedings the fruits of electronic surveillance and
unconsented physical searches authorized under the
Foreign Intelligence Surveillance Act of 1978 (50 U.S.C.
1801 et seq.) without regard to subsections (c), (e),
(f), (g), and (h) of section 106 of that Act and’’, and
(ii) by striking ‘‘the Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 1801 et seq.)’’ and inserting
‘‘such Act’’; and
(B) by striking the period at the end of paragraph
(3)(A) and inserting the following: ‘‘and neither the alien
nor the public shall be informed of such evidence or its
sources other than through reference to the summary provided pursuant to this paragraph. Notwithstanding the
previous sentence, the Department of Justice may, in its
discretion and, in the case of classified information, after
coordination with the originating agency, elect to introduce
such evidence in open session.’’.

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110 STAT. 3009–644

(2) MAINTENANCE OF CONFIDENTIALITY OF CLASSIFIED
INFORMATION IN ARGUMENTS.—Section 504(f) (8 U.S.C. 1534(f))
is amended by adding at the end the following: ‘‘The judge
may allow any part of the argument that refers to evidence
received in camera and ex parte to be heard in camera and
ex parte.’’.
(3) MAINTENANCE OF CONFIDENTIALITY OF CLASSIFIED
INFORMATION IN ORDERS.—Section 504(j) (8 U.S.C. 1534(j)) is
amended by adding at the end the following: ‘‘Any portion
of the order that would reveal the substance or source of
information received in camera and ex parte pursuant to subsection (e) shall not be made available to the alien or the
public.’’.
SEC.

355.

EXCLUSION OF REPRESENTATIVES
ORGANIZATIONS.

OF

TERRORISTS

Section 212(a)(3)(B)(i)(IV) (8 U.S.C. 1182(a)(3)(B)(i)(VI)), as
inserted by section 411(1)(C) of Public Law 104–132, is amended
by inserting ‘‘which the alien knows or should have known is
a terrorist organization’’ after ‘‘219,’’.
SEC. 356. STANDARD FOR JUDICIAL REVIEW OF TERRORIST ORGANIZATION DESIGNATIONS.

Section 219(b)(3) (8 U.S.C. 1189(b)(3)), as added by section
302(a) of Public Law 104–132, is amended—
(1) by striking ‘‘or’’ at the end of subparagraph (B),
(2) by striking the period at the end of subparagraph (C)
and inserting a semicolon, and
(3) by adding at the end the following:
‘‘(D) lacking substantial support in the administrative
record taken as a whole or in classified information submitted to the court under paragraph (2), or
‘‘(E) not in accord with the procedures required by
law.’’.
SEC. 357. REMOVAL OF ANCILLARY RELIEF FOR VOLUNTARY DEPARTURE.

Section 504(k) (8 U.S.C. 1534(k)) is amended—
(1) by redesignating paragraphs (4) and (5) as paragraphs
(5) and (6), and
(2) by inserting after paragraph (3) the following new paragraph:
‘‘(4) voluntary departure under section 244(e);’’.
SEC. 358. EFFECTIVE DATE.

The amendments made by this subtitle shall be effective as
if included in the enactment of subtitle A of title IV of the
Antiterrorism and Effective Death Penalty Act of 1996 (Public Law
104–132).

Subtitle E—Transportation of Aliens
SEC. 361. DEFINITION OF STOWAWAY.

(a) STOWAWAY DEFINED.—Section 101(a) (8 U.S.C. 1101(a)),
as amended by section 322(a)(1) of this division, is amended by
adding at the end the following new paragraph:

8 USC 1182 note.

110 STAT. 3009–645

8 USC 1101 note.

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(49) The term ‘stowaway’ means any alien who obtains
transportation without the consent of the owner, charterer, master
or person in command of any vessel or aircraft through concealment
aboard such vessel or aircraft. A passenger who boards with a
valid ticket is not to be considered a stowaway.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall take effect on the date of the enactment of this Act.
SEC. 362. TRANSPORTATION CONTRACTS.

(a) COVERAGE OF NONCONTIGUOUS TERRITORY.—Section 238 (8
U.S.C. 1228), before redesignation as section 233 under section
308(b)(4) of this division, is amended—
(1) in the heading, by striking ‘‘CONTIGUOUS’’, and
(2) by striking ‘‘contiguous’’ each place it appears in subsections (a), (b), and (d).
(b) COVERAGE OF RAILROAD TRAIN.—Subsection (d) of such section is further amended by inserting ‘‘or railroad train’’ after ‘‘aircraft’’.

Subtitle F—Additional Provisions
SEC. 371. IMMIGRATION JUDGES AND COMPENSATION.

8 USC 1103 note.

(a) DEFINITION OF TERM.—Paragraph (4) of section 101(b) (8
U.S.C. 1101(b)) is amended to read as follows:
‘‘(4) The term ‘immigration judge’ means an attorney whom
the Attorney General appoints as an administrative judge within
the Executive Office for Immigration Review, qualified to conduct
specified classes of proceedings, including a hearing under section
240. An immigration judge shall be subject to such supervision
and shall perform such duties as the Attorney General shall prescribe, but shall not be employed by the Immigration and Naturalization Service.’’.
(b) SUBSTITUTION FOR TERM ‘‘SPECIAL INQUIRY OFFICER’’.—The
Immigration and Nationality Act is amended by striking ‘‘a special
inquiry officer’’, ‘‘A special inquiry officer’’, ‘‘special inquiry officer’’,
and ‘‘special inquiry officers’’ and inserting ‘‘an immigration judge’’,
‘‘An immigration judge’’, ‘‘immigration judge’’, and ‘‘immigration
judges’’, respectively, each place it appears in the following sections:
(1) Section 106(a)(2) (8 U.S.C. 1105a(a)(2)), before its repeal
by section 306(c) of this division.
(2) Section 209(a)(2) (8 U.S.C. 1159(a)(2)).
(3) Section 234 (8 U.S.C. 1224), before redesignation by
section 308(b) of this division.
(4) Section 235 (8 U.S.C. 1225), before amendment by section 302(a) of this division.
(5) Section 236 (8 U.S.C. 1226), before amendment by section 303 of this division.
(6) Section 242(b) (8 U.S.C. 1252(b)), before amendment
by section 306(a)(2) of this division.
(7) Section 242B(d)(1) (8 U.S.C. 1252b(d)(1)), before repeal
by section 306(b)(6) of this division.
(8) Section 273(d) (8 U.S.C. 1323(d)), before its repeal by
section 308(e)(13) of this division.
(9) Section 292 (8 U.S.C. 1362).
(c) COMPENSATION FOR IMMIGRATION JUDGES.—

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–646

(1) IN GENERAL.—There shall be four levels of pay for
immigration judges, under the Immigration Judge Schedule
(designated as IJ–1, 2, 3, and 4, respectively), and each such
judge shall be paid at one of those levels, in accordance with
the provisions of this subsection.
(2) RATES OF PAY.—
(A) The rates of basic pay for the levels established
under paragraph (1) shall be as follows:
IJ–1 .....................................................
IJ–2 .....................................................
IJ–3 .....................................................
IJ–4 .....................................................

70% of the next to highest rate of basic
pay for the Senior Executive Service
80% of the next to highest rate of basic
pay for the Senior Executive Service
90% of the next to highest rate of basic
pay for the Senior Executive Service
92% of the next to highest rate of basic
pay for the Senior Executive Service.

(B) Locality pay, where applicable, shall be calculated
into the basic pay for immigration judges.
(3) APPOINTMENT.—
(A) Upon appointment, an immigration judge shall be
paid at IJ–1, and shall be advanced to IJ–2 upon completion
of 104 weeks of service, to IJ–3 upon completion of 104
weeks of service in the next lower rate, and to IJ–4 upon
completion of 52 weeks of service in the next lower rate.
(B) Notwithstanding subparagraph (A), the Attorney
General may provide for appointment of an immigration
judge at an advanced rate under such circumstances as
the Attorney General may determine appropriate.
(4) TRANSITION.—Immigration judges serving as of the
effective date shall be paid at the rate that corresponds to
the amount of time, as provided under paragraph (3)(A), that
they have served as an immigration judge, and in no case
shall be paid less after the effective date than the rate of
pay prior to the effective date.
(d) EFFECTIVE DATES.—
(1) Subsections (a) and (b) shall take effect on the date
of the enactment of this Act.
(2) Subsection (c) shall take effect 90 days after the date
of the enactment of this Act.
SEC. 372. DELEGATION OF IMMIGRATION ENFORCEMENT AUTHORITY.

Section 103(a) (8 U.S.C. 1103(a)) is amended—
(1) inserting ‘‘(1)’’ after ‘‘(a)’’,
(2) by designating each sentence (after the first sentence)
as a separate paragraph with appropriate consecutive numbering and initial indentation,
(3) by adding at the end the following new paragraph:
‘‘(8) In the event the Attorney General determines that an
actual or imminent mass influx of aliens arriving off the coast
of the United States, or near a land border, presents urgent circumstances requiring an immediate Federal response, the Attorney
General may authorize any State or local law enforcement officer,
with the consent of the head of the department, agency, or establishment under whose jurisdiction the individual is serving, to perform
or exercise any of the powers, privileges, or duties conferred or
imposed by this Act or regulations issued thereunder upon officers
or employees of the Service.’’.

8 USC 1101 note.
8 USC 1103 note.

110 STAT. 3009–647

PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 373. POWERS AND DUTIES OF THE ATTORNEY GENERAL AND
THE COMMISSIONER.

Section 103 (8 U.S.C. 1103) is amended—
(1) by adding at the end of subsection (a) the following
new paragraph:
‘‘(9) The Attorney General, in support of persons in administrative detention in non-Federal institutions, is authorized—
‘‘(A) to make payments from funds appropriated for the
administration and enforcement of the laws relating to
immigration, naturalization, and alien registration for necessary clothing, medical care, necessary guard hire, and the
housing, care, and security of persons detained by the Service
pursuant to Federal law under an agreement with a State
or political subdivision of a State; and
‘‘(B) to enter into a cooperative agreement with any State,
territory, or political subdivision thereof, for the necessary
construction, physical renovation, acquisition of equipment,
supplies or materials required to establish acceptable conditions
of confinement and detention services in any State or unit
of local government which agrees to provide guaranteed bed
space for persons detained by the Service.’’; and
(2) by adding at the end of subsection (c), as redesignated
by section 102(d)(1) of this division, the following: ‘‘The Commissioner may enter into cooperative agreements with State and
local law enforcement agencies for the purpose of assisting
in the enforcement of the immigration laws.’’.
SEC. 374. JUDICIAL DEPORTATION.

(a) IN GENERAL.—Section 242A(d) (8 U.S.C. 1252a(d)), as added
by section 224(a) of Immigration and Nationality Technical Corrections Act of 1994 and before redesignation by section 308(b)(5)
of this division, is amended—
(1) in paragraph (1), by striking ‘‘whose criminal conviction
causes such alien to be deportable under section 241(a)(2)(A)’’
and inserting ‘‘who is deportable’’;
(2) in paragraph (4), by striking ‘‘without a decision on
the merits’’; and
(3) by adding at the end the following new paragraph:
‘‘(5) STIPULATED JUDICIAL ORDER OF DEPORTATION.—The
United States Attorney, with the concurrence of the Commissioner, may, pursuant to Federal Rule of Criminal Procedure
11, enter into a plea agreement which calls for the alien,
who is deportable under this Act, to waive the right to notice
and a hearing under this section, and stipulate to the entry
of a judicial order of deportation from the United States as
a condition of the plea agreement or as a condition of probation
or supervised release, or both. The United States district court,
in both felony and misdemeanor cases, and a United States
magistrate judge in misdemeanor cases, may accept such a
stipulation and shall have jurisdiction to enter a judicial order
of deportation pursuant to the terms of such stipulation.’’.
(b) DEPORTATION AS A CONDITION OF PROBATION.—Section
3563(b) of title 18, United States Code, is amended—
(1) by striking ‘‘or’’ at the end of paragraph (20);
(2) by redesignating paragraph (21) as paragraph (22);
and

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–648

(3) by inserting after paragraph (20) the following new
paragraph:
‘‘(21) be ordered deported by a United States district court,
or United States magistrate judge, pursuant to a stipulation
entered into by the defendant and the United States under
section 242A(d)(5) of the Immigration and Nationality Act,
except that, in the absence of a stipulation, the United States
district court or a United States magistrate judge, may order
deportation as a condition of probation, if, after notice and
hearing pursuant to such section, the Attorney General demonstrates by clear and convincing evidence that the alien is
deportable; or’’.
(c) EFFECTIVE DATE.—The amendment made by subsection
(a)(2) shall be effective as if included in the enactment of section
224(a) of the Immigration and Nationality Technical Corrections
Act of 1994.
SEC. 375. LIMITATION ON ADJUSTMENT OF STATUS.

Section 245(c) (8 U.S.C. 1255(c)) is amended—
(1) by striking ‘‘or (6)’’ and inserting ‘‘(6)’’; and
(2) by inserting before the period at the end the following:
‘‘; (7) any alien who seeks adjustment of status to that of
an immigrant under section 203(b) and is not in a lawful
nonimmigrant status; or (8) any alien who was employed while
the alien was an unauthorized alien, as defined in section
274A(h)(3), or who has otherwise violated the terms of a nonimmigrant visa’’.
SEC. 376. TREATMENT OF CERTAIN FEES.

(a) INCREASE IN FEE.—Section 245(i) (8 U.S.C. 1255(i)), as added
by section 506(b) of Public Law 103–317, is amended—
(1) in paragraph (1), by striking ‘‘five times the fee required
for the processing of applications under this section’’ and inserting ‘‘$1,000’’; and
(2) by amending paragraph (3) to read as follows:
‘‘(3)(A) The portion of each application fee (not to exceed $200)
that the Attorney General determines is required to process an
application under this section and is remitted to the Attorney
General pursuant to paragraphs (1) and (2) of this subsection shall
be disposed of by the Attorney General as provided in subsections
(m), (n), and (o) of section 286.
‘‘(B) Any remaining portion of such fees remitted under such
paragraphs shall be deposited by the Attorney General into the
Immigration Detention Account established under section 286(s).’’.
(b) IMMIGRATION DETENTION ACCOUNT.—Section 286 (8 U.S.C.
1356) is amended by adding at the end the following new subsection:
‘‘(s) IMMIGRATION DETENTION ACCOUNT.—(1) There is established in the general fund of the Treasury a separate account
which shall be known as the ‘Immigration Detention Account’.
Notwithstanding any other section of this title, there shall be deposited as offsetting receipts into the Immigration Detention Account
amounts described in section 245(i)(3)(B) to remain available until
expended.
‘‘(2)(A) The Secretary of the Treasury shall refund out of the
Immigration Detention Account to any appropriation the amount
paid out of such appropriation for expenses incurred by the Attorney
General for the detention of aliens under sections 236(c) and 241(a).

8 USC 1228 note.

110 STAT. 3009–649

8 USC 1255 note.

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(B) The amounts which are required to be refunded under
subparagraph (A) shall be refunded at least quarterly on the basis
of estimates made by the Attorney General of the expenses referred
to in subparagraph (A). Proper adjustments shall be made in the
amounts subsequently refunded under subparagraph (A) to the
extent prior estimates were in excess of, or less than, the amount
required to be refunded under subparagraph (A).
‘‘(C) The amounts required to be refunded from the Immigration
Detention Account for fiscal year 1997 and thereafter shall be
refunded in accordance with estimates made in the budget request
of the Attorney General for those fiscal years. Any proposed changes
in the amounts designated in such budget requests shall only be
made after notification to the Committees on Appropriations of
the House of Representatives and the Senate in accordance with
section 605 of Public Law 104–134.
‘‘(D) The Attorney General shall prepare and submit annually
to the Congress statements of financial condition of the Immigration
Detention Account, including beginning account balance, revenues,
withdrawals, and ending account balance and projection for the
ensuing fiscal year.’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply to applications made on or after the end of the 90day period beginning on the date of the enactment of this Act.
SEC. 377. LIMITATION ON LEGALIZATION LITIGATION.

8 USC 1255a
note.

(a) LIMITATION ON COURT JURISDICTION.—Section 245A(f)(4) (8
U.S.C. 1255a(f)(4)) is amended by adding at the end the following
new subparagraph:
‘‘(C) JURISDICTION OF COURTS.—Notwithstanding any
other provision of law, no court shall have jurisdiction
of any cause of action or claim by or on behalf of any
person asserting an interest under this section unless such
person in fact filed an application under this section within
the period specified by subsection (a)(1), or attempted to
file a complete application and application fee with an
authorized legalization officer of the Service but had the
application and fee refused by that officer.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall be effective as if included in the enactment of the Immigration
Reform and Control Act of 1986.
SEC. 378. RESCISSION OF LAWFUL PERMANENT RESIDENT STATUS.

8 USC 1256 note.

(a) IN GENERAL.—Section 246(a) (8 U.S.C. 1256(a)) is amended
by adding at the end the following sentence: ‘‘Nothing in this
subsection shall require the Attorney General to rescind the alien’s
status prior to commencement of procedures to remove the alien
under section 240, and an order of removal issued by an immigration judge shall be sufficient to rescind the alien’s status.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall take effect on the title III–A effective date (as defined in
section 309(a) of this division).
SEC. 379. ADMINISTRATIVE REVIEW OF ORDERS.

(a) IN GENERAL.—Sections 274A(e)(7) and 274C(d)(4) (8 U.S.C.
1324a(e)(7), 1324c(d)(4)) are each amended—
(1) by striking ‘‘unless, within 30 days, the Attorney General modifies or vacates the decision and order’’ and inserting
‘‘unless either (A) within 30 days, an official delegated by

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–650

regulation to exercise review authority over the decision and
order modifies or vacates the decision and order, or (B) within
30 days of the date of such a modification or vacation (or
within 60 days of the date of decision and order of an administrative law judge if not so modified or vacated) the decision
and order is referred to the Attorney General pursuant to
regulations’’; and
(2) by striking ‘‘a final order’’ and inserting ‘‘the final
agency decision and order’’.
(b) EFFECTIVE DATE.—The amendments made by subsection
(a) shall apply to orders issued on or after the date of the enactment
of this Act.

8 USC 1324a
note.

SEC. 380. CIVIL PENALTIES FOR FAILURE TO DEPART.

(a) IN GENERAL.—The Immigration and Nationality Act is
amended by inserting after section 274C the following new section:
‘‘CIVIL

PENALTIES FOR FAILURE TO DEPART

‘‘SEC. 274D. (a) IN GENERAL.—Any alien subject to a final
order of removal who—
‘‘(1) willfully fails or refuses to—
‘‘(A) depart from the United States pursuant to the
order,
‘‘(B) make timely application in good faith for travel
or other documents necessary for departure, or
‘‘(C) present for removal at the time and place required
by the Attorney General; or
‘‘(2) conspires to or takes any action designed to prevent
or hamper the alien’s departure pursuant to the order,
shall pay a civil penalty of not more than $500 to the Commissioner
for each day the alien is in violation of this section.
‘‘(b) CONSTRUCTION.—Nothing in this section shall be construed
to diminish or qualify any penalties to which an alien may be
subject for activities proscribed by section 243(a) or any other
section of this Act.’’.
(b) CLERICAL AMENDMENT.—The table of contents is amended
by inserting after the item relating to section 274C the following
new item:

8 USC 1324d.

‘‘Sec. 274D. Civil penalties for failure to depart.’’.

(c) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply to actions occurring on or after the title III–A effective
date (as defined in section 309(a) of this division).

8 USC 1324d
note.

SEC. 381. CLARIFICATION OF DISTRICT COURT JURISDICTION.

(a) IN GENERAL.—Section 279 (8 U.S.C. 1329) is amended—
(1) by amending the first sentence to read as follows: ‘‘The
district courts of the United States shall have jurisdiction of
all causes, civil and criminal, brought by the United States
that arise under the provisions of this title.’’, and
(2) by adding at the end the following new sentence: ‘‘Nothing in this section shall be construed as providing jurisdiction
for suits against the United States or its agencies or officers.’’.
(b) EFFECTIVE DATE.—The amendments made by subsection
(a) shall apply to actions filed after the date of the enactment
of this Act.

8 USC 1329 note.

110 STAT. 3009–651
SEC.

8 USC 1330 note.

382.

PUBLIC LAW 104–208—SEPT. 30, 1996
APPLICATION OF
ENFORCEMENT.

ADDITIONAL

CIVIL

PENALTIES

TO

(a) IN GENERAL.—Subsection (b) of section 280 (8 U.S.C. 1330)
is amended to read as follows:
‘‘(b)(1) There is established in the general fund of the Treasury
a separate account which shall be known as the ‘Immigration
Enforcement Account’. Notwithstanding any other section of this
title, there shall be deposited as offsetting receipts into the Immigration Enforcement Account amounts described in paragraph (2) to
remain available until expended.
‘‘(2) The amounts described in this paragraph are the following:
‘‘(A) The increase in penalties collected resulting from the
amendments made by sections 203(b) and 543(a) of the
Immigration Act of 1990.
‘‘(B) Civil penalties collected under sections 240B(d), 274C,
274D, and 275(b).
‘‘(3)(A) The Secretary of the Treasury shall refund out of the
Immigration Enforcement Account to any appropriation the amount
paid out of such appropriation for expenses incurred by the Attorney
General for activities that enhance enforcement of provisions of
this title. Such activities include—
‘‘(i) the identification, investigation, apprehension, detention, and removal of criminal aliens;
‘‘(ii) the maintenance and updating of a system to identify
and track criminal aliens, deportable aliens, inadmissible
aliens, and aliens illegally entering the United States; and
‘‘(iii) for the repair, maintenance, or construction on the
United States border, in areas experiencing high levels of
apprehensions of illegal aliens, of structures to deter illegal
entry into the United States.
‘‘(B) The amounts which are required to be refunded under
subparagraph (A) shall be refunded at least quarterly on the basis
of estimates made by the Attorney General of the expenses referred
to in subparagraph (A). Proper adjustments shall be made in the
amounts subsequently refunded under subparagraph (A) to the
extent prior estimates were in excess of, or less than, the amount
required to be refunded under subparagraph (A).
‘‘(C) The amounts required to be refunded from the Immigration
Enforcement Account for fiscal year 1996 and thereafter shall be
refunded in accordance with estimates made in the budget request
of the Attorney General for those fiscal years. Any proposed changes
in the amounts designated in such budget requests shall only be
made after notification to the Committees on Appropriations of
the House of Representatives and the Senate in accordance with
section 605 of Public Law 104–134.
‘‘(D) The Attorney General shall prepare and submit annually
to the Congress statements of financial condition of the Immigration
Enforcement Account, including beginning account balance, revenues, withdrawals, and ending account balance and projection for
the ensuing fiscal year.’’.
(b) IMMIGRATION USER FEE ACCOUNT.—Section 286(h)(1)(B) (8
U.S.C. 1356(h)(1)(B)) is amended by striking ‘‘271’’ and inserting
‘‘243(c), 271,’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply to fines and penalties collected on or after the date
of the enactment of this Act.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–652

SEC. 383. EXCLUSION OF CERTAIN ALIENS FROM FAMILY UNITY PROGRAM.

(a) IN GENERAL.—Section 301(e) of the Immigration Act of
1990 (8 U.S.C. 1255a note) is amended—
(1) by striking ‘‘or’’ at the end of paragraph (1),
(2) by striking the period at the end of paragraph (2)
and inserting ‘‘, or’’, and
(3) by adding at the end the following new paragraph:
‘‘(3) has committed an act of juvenile delinquency which
if committed by an adult would be classified as—
‘‘(A) a felony crime of violence that has an element
the use or attempted use of physical force against another
individual, or
‘‘(B) a felony offense that by its nature involves a
substantial risk that physical force against another individual may be used in the course of committing the offense.’’.
(b) EFFECTIVE DATE.—The amendments made by subsection
(a) shall apply to benefits granted or extended after the date of
the enactment of this Act.
SEC. 384. PENALTIES FOR DISCLOSURE OF INFORMATION.

(a) IN GENERAL.—Except as provided in subsection (b), in no
case may the Attorney General, or any other official or employee
of the Department of Justice (including any bureau or agency of
such Department)—
(1) make an adverse determination of admissibility or
deportability of an alien under the Immigration and Nationality
Act using information furnished solely by—
(A) a spouse or parent who has battered the alien
or subjected the alien to extreme cruelty,
(B) a member of the spouse’s or parent’s family residing
in the same household as the alien who has battered the
alien or subjected the alien to extreme cruelty when the
spouse or parent consented to or acquiesced in such battery
or cruelty,
(C) a spouse or parent who has battered the alien’s
child or subjected the alien’s child to extreme cruelty (without the active participation of the alien in the battery
or extreme cruelty), or
(D) a member of the spouse’s or parent’s family residing
in the same household as the alien who has battered the
alien’s child or subjected the alien’s child to extreme cruelty
when the spouse or parent consented to or acquiesced in
such battery or cruelty and the alien did not actively
participate in such battery or cruelty,
unless the alien has been convicted of a crime or crimes listed
in section 241(a)(2) of the Immigration and Nationality Act;
or
(2) permit use by or disclosure to anyone (other than a
sworn officer or employee of the Department, or bureau or
agency thereof, for legitimate Department, bureau, or agency
purposes) of any information which relates to an alien who
is the beneficiary of an application for relief under clause (iii)
or (iv) of section 204(a)(1)(A), clause (ii) or (iii) of section
204(a)(1)(B), section 216(c)(4)(C), or section 244(a)(3) of such
Act as an alien (or the parent of a child) who has been battered
or subjected to extreme cruelty.

8 USC 1255a
note.
8 USC 1367.

110 STAT. 3009–653

8 USC 1160.

8 USC 1160 note.

PUBLIC LAW 104–208—SEPT. 30, 1996

The limitation under paragraph (2) ends when the application for
relief is denied and all opportunities for appeal of the denial have
been exhausted.
(b) EXCEPTIONS.—
(1) The Attorney General may provide, in the Attorney
General’s discretion, for the disclosure of information in the
same manner and circumstances as census information may
be disclosed by the Secretary of Commerce under section 8
of title 13, United States Code.
(2) The Attorney General may provide in the discretion
of the Attorney General for the disclosure of information to
law enforcement officials to be used solely for a legitimate
law enforcement purpose.
(3) Subsection (a) shall not be construed as preventing
disclosure of information in connection with judicial review
of a determination in a manner that protects the confidentiality
of such information.
(4) Subsection (a)(2) shall not apply if all the battered
individuals in the case are adults and they have all waived
the restrictions of such subsection.
(c) PENALTIES FOR VIOLATIONS.—Anyone who willfully uses,
publishes, or permits information to be disclosed in violation of
this section shall be subject to appropriate disciplinary action and
subject to a civil money penalty of not more than $5,000 for each
such violation.
(d) CONFORMING AMENDMENTS TO OTHER DISCLOSURE RESTRICTIONS.—
(1) IN GENERAL.—The last sentence of section 210(b)(6)
and the second sentence of section 245A(c)(5) (8 U.S.C.
1255a(c)(5)) are each amended to read as follows: ‘‘Anyone
who uses, publishes, or permits information to be examined
in violation of this paragraph shall be subject to appropriate
disciplinary action and subject to a civil money penalty of
not more than $5,000 for each violation.’’.
(2) EFFECTIVE DATE.—The amendments made by this subsection shall apply to offenses occurring on or after the date
of the enactment of this Act.
SEC. 385. AUTHORIZATION OF ADDITIONAL FUNDS FOR REMOVAL OF
ALIENS.

In addition to the amounts otherwise authorized to be appropriated for each fiscal year beginning with fiscal year 1996, there
are authorized to be appropriated to the Attorney General
$150,000,000 for costs associated with the removal of inadmissible
or deportable aliens, including costs of detention of such aliens
pending their removal, the hiring of more investigators, and the
hiring of more detention and deportation officers.
8 USC 1368.

SEC. 386. INCREASE IN INS DETENTION FACILITIES; REPORT ON
DETENTION SPACE.

(a) INCREASE IN DETENTION FACILITIES.—Subject to the availability of appropriations, the Attorney General shall provide for
an increase in the detention facilities of the Immigration and Naturalization Service to at least 9,000 beds before the end of fiscal
year 1997.
(b) REPORT ON DETENTION SPACE.—
(1) IN GENERAL.—Not later than 6 months after the date
of the enactment of this Act, and every 6 months thereafter,

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–654

the Attorney General shall submit a report to the Committees
on the Judiciary of the House of Representatives and of the
Senate estimating the amount of detention space that will
be required, during the fiscal year in which the report is submitted and the succeeding fiscal year, to detain—
(A) all aliens subject to detention under section 236(c)
of the Immigration and Nationality Act (as amended by
section 303 of this title) and section 241(a) of the Immigration and Nationality Act (as inserted by section 305(a)(3)
of this title);
(B) all excludable or deportable aliens subject to
proceedings under section 238 of the Immigration and
Nationality Act (as redesignated by section 308(b)(5) of
this title) or section 235(b)(2)(A) or 240 of the Immigration
and Nationality Act; and
(C) other excludable or deportable aliens in accordance
with the priorities established by the Attorney General.
(2) ESTIMATE OF NUMBER OF ALIENS RELEASED INTO THE
COMMUNITY.—
(A) CRIMINAL ALIENS.—
(i) IN GENERAL.—The first report submitted under
paragraph (1) shall include an estimate of the number
of criminal aliens who, in each of the 3 fiscal years
concluded prior to the date of the report—
(I) were released from detention facilities of
the Immigration and Naturalization Service
(whether operated directly by the Service or
through contract with other persons or agencies);
or
(II) were not taken into custody or detention
by the Service upon completion of their incarceration.
(ii) ALIENS CONVICTED OF AGGRAVATED FELONIES.—
The estimate under clause (i) shall estimate separately,
with respect to each year described in such clause,
the number of criminal aliens described in such clause
who were convicted of an aggravated felony.
(B) ALL EXCLUDABLE OR DEPORTABLE ALIENS.—The first
report submitted under paragraph (1) shall also estimate
the number of excludable or deportable aliens who were
released into the community due to a lack of detention
facilities in each of the 3 fiscal years concluded prior to
the date of the report notwithstanding circumstances that
the Attorney General believed justified detention (for example, a significant probability that the released alien would
not appear, as agreed, at subsequent exclusion or deportation proceedings).
(C) SUBSEQUENT REPORTS.—Each report under paragraph (1) following the first such report shall include the
estimates under subparagraphs (A) and (B), made with
respect to the 6-month period immediately preceding the
date of the submission of the report.

110 STAT. 3009–655
8 USC 1231 note.

PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 387. PILOT PROGRAM ON USE OF CLOSED MILITARY BASES FOR
THE DETENTION OF INADMISSIBLE OR DEPORTABLE
ALIENS.

(a) ESTABLISHMENT.—The Attorney General and the Secretary
of Defense shall establish one or more pilot programs for up to
2 years each to determine the feasibility of the use of military
bases, available because of actions under a base closure law, as
detention centers by the Immigration and Naturalization Service.
In selecting real property at a military base for use as a detention
center under the pilot program, the Attorney General and the
Secretary shall consult with the redevelopment authority established for the military base and give substantial deference to the
redevelopment plan prepared for the military base.
(b) REPORT.—Not later than 30 months after the date of the
enactment of this Act, the Attorney General, together with the
Secretary of Defense, shall submit a report to the Committees
on the Judiciary of the House of Representatives and of the Senate,
and the Committees on Armed Services of the House of Representatives and of the Senate, on the feasibility of using military bases
closed under a base closure law as detention centers by the
Immigration and Naturalization Service.
(c) DEFINITION.—For purposes of this section, the term ‘‘base
closure law’’ means each of the following:
(1) The Defense Base Closure and Realignment Act of
1990 (part A of title XXIX of Public Law 101–510; 10 U.S.C.
2687 note).
(2) Title II of the Defense Authorization Amendments and
Base Closure and Realignment Act (Public Law 100–526; 10
U.S.C. 2687 note).
(3) Section 2687 of title 10, United States Code.
(4) Any other similar law enacted after the date of the
enactment of this Act.
8 USC 1231 note.

SEC. 388. REPORT ON INTERIOR REPATRIATION PROGRAM.

Not later than 30 months after the date of the enactment
of this Act, the Attorney General, in consultation with the Secretary
of State, shall submit a report to the Committees on the Judiciary
of the House of Representatives and of the Senate on the operation
of the program of interior repatriation developed under section
437 of the Antiterrorism and Effective Death Penalty Act of 1996
(Public Law 104–132).

TITLE IV—ENFORCEMENT OF
RESTRICTIONS AGAINST EMPLOYMENT
8 USC 1324a
note.

Subtitle A—Pilot Programs for
Employment Eligibility Confirmation
SEC. 401. ESTABLISHMENT OF PROGRAMS.

(a) IN GENERAL.—The Attorney General shall conduct 3 pilot
programs of employment eligibility confirmation under this subtitle.
(b) IMPLEMENTATION DEADLINE; TERMINATION.—The Attorney
General shall implement the pilot programs in a manner that
permits persons and other entities to have elections under section
402 of this division made and in effect no later than 1 year after

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–656

the date of the enactment of this Act. Unless the Congress otherwise
provides, the Attorney General shall terminate a pilot program
at the end of the 4-year period beginning on the first day the
pilot program is in effect.
(c) SCOPE OF OPERATION OF PILOT PROGRAMS.—The Attorney
General shall provide for the operation—
(1) of the basic pilot program (described in section 403(a)
of this division) in, at a minimum, 5 of the 7 States with
the highest estimated population of aliens who are not lawfully
present in the United States;
(2) of the citizen attestation pilot program (described in
section 403(b) of this division) in at least 5 States (or, if fewer,
all of the States) that meet the condition described in section
403(b)(2)(A) of this division; and
(3) of the machine-readable-document pilot program
(described in section 403(c) of this division) in at least 5 States
(or, if fewer, all of the States) that meet the condition described
in section 403(c)(2) of this division.
(d) REFERENCES IN SUBTITLE.—In this subtitle—
(1) PILOT PROGRAM REFERENCES.—The terms ‘‘program’’ or
‘‘pilot program’’ refer to any of the 3 pilot programs provided
for under this subtitle.
(2) CONFIRMATION SYSTEM.—The term ‘‘confirmation system’’ means the confirmation system established under section
404 of this division.
(3) REFERENCES TO SECTION 274A.—Any reference in this
subtitle to section 274A (or a subdivision of such section) is
deemed a reference to such section (or subdivision thereof)
of the Immigration and Nationality Act.
(4) I–9 OR SIMILAR FORM.—The term ‘‘I–9 or similar form’’
means the form used for purposes of section 274A(b)(1)(A) or
such other form as the Attorney General determines to be
appropriate.
(5) LIMITED APPLICATION TO RECRUITERS AND REFERRERS.—
Any reference to recruitment or referral (or a recruiter or
referrer) in relation to employment is deemed a reference only
to such recruitment or referral (or recruiter or referrer) that
is subject to section 274A(a)(1)(B)(ii).
(6) UNITED STATES CITIZENSHIP.—The term ‘‘United States
citizenship’’ includes United States nationality.
(7) STATE.—The term ‘‘State’’ has the meaning given such
term in section 101(a)(36) of the Immigration and Nationality
Act.
SEC. 402. VOLUNTARY ELECTION TO PARTICIPATE IN A PILOT PROGRAM.

(a) VOLUNTARY ELECTION.—Subject to subsection (c)(3)(B), any
person or other entity that conducts any hiring (or recruitment
or referral) in a State in which a pilot program is operating may
elect to participate in that pilot program. Except as specifically
provided in subsection (e), the Attorney General may not require
any person or other entity to participate in a pilot program.
(b) BENEFIT OF REBUTTABLE PRESUMPTION.—
(1) IN GENERAL.—If a person or other entity is participating
in a pilot program and obtains confirmation of identity and
employment eligibility in compliance with the terms and conditions of the program with respect to the hiring (or recruitment

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or referral) of an individual for employment in the United
States, the person or entity has established a rebuttable
presumption that the person or entity has not violated section
274A(a)(1)(A) with respect to such hiring (or such recruitment
or referral).
(2) CONSTRUCTION.—Paragraph (1) shall not be construed
as preventing a person or other entity that has an election
in effect under subsection (a) from establishing an affirmative
defense under section 274A(a)(3) if the person or entity complies
with the requirements of section 274A(a)(1)(B) but fails to
obtain confirmation under paragraph (1).
(c) GENERAL TERMS OF ELECTIONS.—
(1) IN GENERAL.—An election under subsection (a) shall
be in such form and manner, under such terms and conditions,
and shall take effect, as the Attorney General shall specify.
The Attorney General may not impose any fee as a condition
of making an election or participating in a pilot program.
(2) SCOPE OF ELECTION.—
(A) IN GENERAL.—Subject to paragraph (3), any electing
person or other entity may provide that the election under
subsection (a) shall apply (during the period in which the
election is in effect)—
(i) to all its hiring (and all recruitment or referral)
in the State (or States) in which the pilot program
is operating, or
(ii) to its hiring (or recruitment or referral) in
one or more pilot program States or one or more places
of hiring (or recruitment or referral, as the case may
be) in the pilot program States.
(B) APPLICATION OF PROGRAMS IN NON-PILOT PROGRAM
STATES.—In addition, the Attorney General may permit
a person or entity electing—
(i) the basic pilot program (described in section
403(a) of this division) to provide that the election
applies to its hiring (or recruitment or referral) in
one or more States or places of hiring (or recruitment
or referral) in which the pilot program is not otherwise
operating, or
(ii) the citizen attestation pilot program (described
in 403(b) of this division) or the machine-readabledocument pilot program (described in section 403(c)
of this division) to provide that the election applies
to its hiring (or recruitment or referral) in one or
more States or places of hiring (or recruitment or referral) in which the pilot program is not otherwise operating but only if such States meet the requirements
of 403(b)(2)(A) and 403(c)(2) of this division, respectively.
(3) ACCEPTANCE AND REJECTION OF ELECTIONS.—
(A) IN GENERAL.—Except as provided in subparagraph
(B), the Attorney General shall accept all elections made
under subsection (a).
(B) REJECTION OF ELECTIONS.—The Attorney General
may reject an election by a person or other entity under
this section or limit its applicability to certain States or
places of hiring (or recruitment or referral) if the Attorney
General has determined that there are insufficient

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110 STAT. 3009–658

resources to provide appropriate services under a pilot
program for the person’s or entity’s hiring (or recruitment
or referral) in any or all States or places of hiring.
(4) TERMINATION OF ELECTIONS.—The Attorney General
may terminate an election by a person or other entity under
this section because the person or entity has substantially
failed to comply with its obligations under the pilot program.
A person or other entity may terminate an election in such
form and manner as the Attorney General shall specify.
(d) CONSULTATION, EDUCATION, AND PUBLICITY.—
(1) CONSULTATION.—The Attorney General shall closely
consult with representatives of employers (and recruiters and
referrers) in the development and implementation of the pilot
programs, including the education of employers (and recruiters
and referrers) about such programs.
(2) PUBLICITY.—The Attorney General shall widely publicize the election process and pilot programs, including the
voluntary nature of the pilot programs and the advantages
to employers (and recruiters and referrers) of making an election under this section.
(3) ASSISTANCE THROUGH DISTRICT OFFICES.—The Attorney
General shall designate one or more individuals in each District
office of the Immigration and Naturalization Service for a Service District in which a pilot program is being implemented—
(A) to inform persons and other entities that seek
information about pilot programs of the voluntary nature
of such programs, and
(B) to assist persons and other entities in electing
and participating in any pilot programs in effect in the
District, in complying with the requirements of section
274A, and in facilitating confirmation of the identity and
employment eligibility of individuals consistent with such
section.
(e) SELECT ENTITIES REQUIRED TO PARTICIPATE IN A PILOT
PROGRAM.—
(1) FEDERAL GOVERNMENT.—
(A) EXECUTIVE DEPARTMENTS.—
(i) IN GENERAL.—Each Department of the Federal
Government shall elect to participate in a pilot program and shall comply with the terms and conditions
of such an election.
(ii) ELECTION.—Subject to clause (iii), the Secretary
of each such Department—
(I) shall elect the pilot program (or programs)
in which the Department shall participate, and
(II) may limit the election to hiring occurring
in certain States (or geographic areas) covered by
the program (or programs) and in specified divisions within the Department, so long as all hiring
by such divisions and in such locations is covered.
(iii) ROLE OF ATTORNEY GENERAL.—The Attorney
General shall assist and coordinate elections under
this subparagraph in such manner as assures that—
(I) a significant portion of the total hiring
within each Department within States covered by
a pilot program is covered under such a program,
and

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(II) there is significant participation by the
Federal Executive branch in each of the pilot programs.
(B) LEGISLATIVE BRANCH.—Each Member of Congress,
each officer of Congress, and the head of each agency
of the legislative branch, that conducts hiring in a State
in which a pilot program is operating shall elect to participate in a pilot program, may specify which pilot program
or programs (if there is more than one) in which the Member, officer, or agency will participate, and shall comply
with the terms and conditions of such an election.
(2) APPLICATION TO CERTAIN VIOLATORS.—An order under
section 274A(e)(4) or section 274B(g) of the Immigration and
Nationality Act may require the subject of the order to participate in, and comply with the terms of, a pilot program with
respect to the subject’s hiring (or recruitment or referral) of
individuals in a State covered by such a program.
(3) CONSEQUENCE OF FAILURE TO PARTICIPATE.—If a person
or other entity is required under this subsection to participate
in a pilot program and fails to comply with the requirements
of such program with respect to an individual—
(A) such failure shall be treated as a violation of section
274A(a)(1)(B) with respect to that individual, and
(B) a rebuttable presumption is created that the person
or entity has violated section 274A(a)(1)(A).
Subparagraph (B) shall not apply in any prosecution under
section 274A(f)(1).
(f) CONSTRUCTION.—This subtitle shall not affect the authority
of the Attorney General under any other law (including section
274A(d)(4)) to conduct demonstration projects in relation to section
274A.
SEC. 403. PROCEDURES FOR PARTICIPANTS IN PILOT PROGRAMS.

(a) BASIC PILOT PROGRAM.—A person or other entity that elects
to participate in the basic pilot program described in this subsection
agrees to conform to the following procedures in the case of the
hiring (or recruitment or referral) for employment in the United
States of each individual covered by the election:
(1) PROVISION OF ADDITIONAL INFORMATION.—The person
or entity shall obtain from the individual (and the individual
shall provide) and shall record on the I–9 or similar form—
(A) the individual’s social security account number,
if the individual has been issued such a number, and
(B) if the individual does not attest to United States
citizenship under section 274A(b)(2), such identification or
authorization number established by the Immigration and
Naturalization Service for the alien as the Attorney General
shall specify,
and shall retain the original form and make it available for
inspection for the period and in the manner required of I–
9 forms under section 274A(b)(3).
(2) PRESENTATION OF DOCUMENTATION.—
(A) IN GENERAL.—The person or other entity, and the
individual whose identity and employment eligibility are
being confirmed, shall, subject to subparagraph (B), fulfill
the requirements of section 274A(b) with the following
modifications:

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–660

(i) A document referred to in section
274A(b)(1)(B)(ii) (as redesignated by section 412(a) of
this division) must be designated by the Attorney General as suitable for the purpose of identification in
a pilot program.
(ii) A document referred to in section 274A(b)(1)(D)
must contain a photograph of the individual.
(iii) The person or other entity has complied with
the requirements of section 274A(b)(1) with respect
to examination of a document if the document reasonably appears on its face to be genuine and it reasonably
appears to pertain to the individual whose identity
and work eligibility is being confirmed.
(B) LIMITATION OF REQUIREMENT TO EXAMINE DOCUMENTATION.—If the Attorney General finds that a pilot
program would reliably determine with respect to an
individual whether—
(i) the person with the identity claimed by the
individual is authorized to work in the United States,
and
(ii) the individual is claiming the identity of
another person,
if a person or entity could fulfill the requirement to examine
documentation contained in subparagraph (A) of section
274A(b)(1) by examining a document specified in either
subparagraph (B) or (D) of such section, the Attorney General may provide that, for purposes of such requirement,
only such a document need be examined. In such case,
any reference in section 274A(b)(1)(A) to a verification that
an individual is not an unauthorized alien shall be deemed
to be a verification of the individual’s identity.
(3) SEEKING CONFIRMATION.—
(A) IN GENERAL.—The person or other entity shall
make an inquiry, as provided in section 404(a)(1) of this
division, using the confirmation system to seek confirmation of the identity and employment eligibility of an individual, by not later than the end of 3 working days (as
specified by the Attorney General) after the date of the
hiring (or recruitment or referral, as the case may be).
(B) EXTENSION OF TIME PERIOD.—If the person or other
entity in good faith attempts to make an inquiry during
such 3 working days and the confirmation system has
registered that not all inquiries were received during such
time, the person or entity can make an inquiry in the
first subsequent working day in which the confirmation
system registers that it has received all inquiries. If the
confirmation system cannot receive inquiries at all times
during a day, the person or entity merely has to assert
that the entity attempted to make the inquiry on that
day for the previous sentence to apply to such an inquiry,
and does not have to provide any additional proof concerning such inquiry.
(4) CONFIRMATION OR NONCONFIRMATION.—
(A) CONFIRMATION UPON INITIAL INQUIRY.—If the person or other entity receives an appropriate confirmation
of an individual’s identity and work eligibility under the
confirmation system within the time period specified under

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section 404(b) of this division, the person or entity shall
record on the I–9 or similar form an appropriate code
that is provided under the system and that indicates a
final confirmation of such identity and work eligibility of
the individual.
(B) NONCONFIRMATION UPON INITIAL INQUIRY AND
SECONDARY VERIFICATION.—
(i) NONCONFIRMATION.—If the person or other
entity receives a tentative nonconfirmation of an
individual’s identity or work eligibility under the confirmation system within the time period specified under
404(b) of this division, the person or entity shall so
inform the individual for whom the confirmation is
sought.
(ii) NO CONTEST.—If the individual does not contest
the nonconfirmation within the time period specified
in section 404(c) of this division, the nonconfirmation
shall be considered final. The person or entity shall
then record on the I–9 or similar form an appropriate
code which has been provided under the system to
indicate a tentative nonconfirmation.
(iii) CONTEST.—If the individual does contest the
nonconfirmation, the individual shall utilize the process for secondary verification provided under section
404(c) of this division. The nonconfirmation will remain
tentative until a final confirmation or nonconfirmation
is provided by the confirmation system within the time
period specified in such section. In no case shall an
employer terminate employment of an individual
because of a failure of the individual to have identity
and work eligibility confirmed under this section until
a nonconfirmation becomes final. Nothing in this clause
shall apply to a termination of employment for any
reason other than because of such a failure.
(iv) RECORDING OF CONCLUSION ON FORM.—If a
final confirmation or nonconfirmation is provided by
the confirmation system under section 404(c) of this
division regarding an individual, the person or entity
shall record on the I–9 or similar form an appropriate
code that is provided under the system and that
indicates a confirmation or nonconfirmation of identity
and work eligibility of the individual.
(C) CONSEQUENCES OF NONCONFIRMATION.—
(i) TERMINATION OR NOTIFICATION OF CONTINUED
EMPLOYMENT.—If the person or other entity has
received a final nonconfirmation regarding an individual under subparagraph (B), the person or entity may
terminate employment (or recruitment or referral) of
the individual. If the person or entity does not terminate employment (or recruitment or referral) of the
individual, the person or entity shall notify the Attorney General of such fact through the confirmation system or in such other manner as the Attorney General
may specify.
(ii) FAILURE TO NOTIFY.—If the person or entity
fails to provide notice with respect to an individual
as required under clause (i), the failure is deemed

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110 STAT. 3009–662

to constitute a violation of section 274A(a)(1)(B) with
respect to that individual and the applicable civil monetary penalty under section 274A(e)(5) shall be (notwithstanding the amounts specified in such section) no
less than $500 and no more than $1,000 for each
individual with respect to whom such violation
occurred.
(iii) CONTINUED EMPLOYMENT AFTER FINAL NONCONFIRMATION.—If the person or other entity continues
to employ (or to recruit or refer) an individual after
receiving final nonconfirmation, a rebuttable presumption is created that the person or entity has violated
section 274A(a)(1)(A). The previous sentence shall not
apply in any prosecution under section 274A(f)(1).
(b) CITIZEN ATTESTATION PILOT PROGRAM.—
(1) IN GENERAL.—Except as provided in paragraphs (3)
through (5), the procedures applicable under the citizen attestation pilot program under this subsection shall be the same
procedures as those under the basic pilot program under subsection (a).
(2) RESTRICTIONS.—
(A) STATE DOCUMENT REQUIREMENT TO PARTICIPATE IN
PILOT PROGRAM.—The Attorney General may not provide
for the operation of the citizen attestation pilot program
in a State unless each driver’s license or similar identification document described in section 274A(b)(1)(D)(i) issued
by the State—
(i) contains a photograph of the individual
involved, and
(ii) has been determined by the Attorney General
to have security features, and to have been issued
through application and issuance procedures, which
make such document sufficiently resistant to counterfeiting, tampering, and fraudulent use that it is a
reliable means of identification for purposes of this
section.
(B) AUTHORIZATION TO LIMIT EMPLOYER PARTICIPATION.—The Attorney General may restrict the number of
persons or other entities that may elect to participate in
the citizen attestation pilot program under this subsection
as the Attorney General determines to be necessary to
produce a representative sample of employers and to reduce
the potential impact of fraud.
(3) NO CONFIRMATION REQUIRED FOR CERTAIN INDIVIDUALS
ATTESTING TO U.S. CITIZENSHIP.—In the case of a person or
other entity hiring (or recruiting or referring) an individual
under the citizen attestation pilot program, if the individual
attests to United States citizenship (under penalty of perjury
on an I–9 or similar form which form states on its face the
criminal and other penalties provided under law for a false
representation of United States citizenship)—
(A) the person or entity may fulfill the requirement
to examine documentation contained in subparagraph (A)
of section 274A(b)(1) by examining a document specified
in either subparagraph (B)(i) or (D) of such section; and
(B) the person or other entity is not required to comply
with respect to such individual with the procedures

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PUBLIC LAW 104–208—SEPT. 30, 1996

described in paragraphs (3) and (4) of subsection (a), but
only if the person or entity retains the form and makes
it available for inspection in the same manner as in the
case of an I–9 form under section 274A(b)(3).
(4) WAIVER OF DOCUMENT PRESENTATION REQUIREMENT IN
CERTAIN CASES.—
(A) IN GENERAL.—In the case of a person or entity
that elects, in a manner specified by the Attorney General
consistent with subparagraph (B), to participate in the
pilot program under this paragraph, if an individual being
hired (or recruited or referred) attests (in the manner
described in paragraph (3)) to United States citizenship
and the person or entity retains the form on which the
attestation is made and makes it available for inspection
in the same manner as in the case of an I–9 form under
section 274A(b)(3), the person or entity is not required
to comply with the procedures described in section 274A(b).
(B) RESTRICTION.—The Attorney General shall restrict
the election under this paragraph to no more than 1,000
employers and, to the extent practicable, shall select among
employers seeking to make such election in a manner that
provides for such an election by a representative sample
of employers.
(5) NONREVIEWABLE DETERMINATIONS.—The determinations
of the Attorney General under paragraphs (2) and (4) are
within the discretion of the Attorney General and are not
subject to judicial or administrative review.
(c) MACHINE-READABLE-DOCUMENT PILOT PROGRAM.—
(1) IN GENERAL.—Except as provided in paragraph (3), the
procedures applicable under the machine-readable-document
pilot program under this subsection shall be the same procedures as those under the basic pilot program under subsection
(a).
(2) STATE DOCUMENT REQUIREMENT TO PARTICIPATE IN PILOT
PROGRAM.—The Attorney General may not provide for the operation of the machine-readable-document pilot program in a
State unless driver’s licenses and similar identification documents described in section 274A(b)(1)(D)(i) issued by the State
include a machine-readable social security account number.
(3) USE OF MACHINE-READABLE DOCUMENTS.—If the individual whose identity and employment eligibility must be confirmed presents to the person or entity hiring (or recruiting
or referring) the individual a license or other document
described in paragraph (2) that includes a machine-readable
social security account number, the person or entity must make
an inquiry through the confirmation system by using a
machine-readable feature of such document. If the individual
does not attest to United States citizenship under section
274A(b)(2), the individual’s identification or authorization number described in subsection (a)(1)(B) shall be provided as part
of the inquiry.
(d) PROTECTION FROM LIABILITY FOR ACTIONS TAKEN ON THE
BASIS OF INFORMATION PROVIDED BY THE CONFIRMATION SYSTEM.—
No person or entity participating in a pilot program shall be civilly
or criminally liable under any law for any action taken in good
faith reliance on information provided through the confirmation
system.

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110 STAT. 3009–664

SEC. 404. EMPLOYMENT ELIGIBILITY CONFIRMATION SYSTEM.

(a) IN GENERAL.—The Attorney General shall establish a pilot
program confirmation system through which the Attorney General
(or a designee of the Attorney General, which may be a nongovernmental entity)—
(1) responds to inquiries made by electing persons and
other entities (including those made by the transmittal of data
from machine-readable documents under the machine-readable
pilot program) at any time through a toll-free telephone line
or other toll-free electronic media concerning an individual’s
identity and whether the individual is authorized to be
employed, and
(2) maintains records of the inquiries that were made,
of confirmations provided (or not provided), and of the codes
provided to inquirers as evidence of their compliance with their
obligations under the pilot programs.
To the extent practicable, the Attorney General shall seek to establish such a system using one or more nongovernmental entities.
(b) INITIAL RESPONSE.—The confirmation system shall provide
confirmation or a tentative nonconfirmation of an individual’s identity and employment eligibility within 3 working days of the initial
inquiry. If providing confirmation or tentative nonconfirmation, the
confirmation system shall provide an appropriate code indicating
such confirmation or such nonconfirmation.
(c) SECONDARY VERIFICATION PROCESS IN CASE OF TENTATIVE
NONCONFIRMATION.—In cases of tentative nonconfirmation, the
Attorney General shall specify, in consultation with the Commissioner of Social Security and the Commissioner of the Immigration
and Naturalization Service, an available secondary verification process to confirm the validity of information provided and to provide
a final confirmation or nonconfirmation within 10 working days
after the date of the tentative nonconfirmation. When final confirmation or nonconfirmation is provided, the confirmation system
shall provide an appropriate code indicating such confirmation or
nonconfirmation.
(d) DESIGN AND OPERATION OF SYSTEM.—The confirmation system shall be designed and operated—
(1) to maximize its reliability and ease of use by persons
and other entities making elections under section 402(a) of
this division consistent with insulating and protecting the privacy and security of the underlying information;
(2) to respond to all inquiries made by such persons and
entities on whether individuals are authorized to be employed
and to register all times when such inquiries are not received;
(3) with appropriate administrative, technical, and physical
safeguards to prevent unauthorized disclosure of personal
information; and
(4) to have reasonable safeguards against the system’s
resulting in unlawful discriminatory practices based on national
origin or citizenship status, including—
(A) the selective or unauthorized use of the system
to verify eligibility;
(B) the use of the system prior to an offer of employment; or
(C) the exclusion of certain individuals from consideration for employment as a result of a perceived likelihood

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that additional verification will be required, beyond what
is required for most job applicants.
(e) RESPONSIBILITIES OF THE COMMISSIONER OF SOCIAL SECURITY.—As part of the confirmation system, the Commissioner of
Social Security, in consultation with the entity responsible for
administration of the system, shall establish a reliable, secure
method, which, within the time periods specified under subsections
(b) and (c), compares the name and social security account number
provided in an inquiry against such information maintained by
the Commissioner in order to confirm (or not confirm) the validity
of the information provided regarding an individual whose identity
and employment eligibility must be confirmed, the correspondence
of the name and number, and whether the individual has presented
a social security account number that is not valid for employment.
The Commissioner shall not disclose or release social security
information (other than such confirmation or nonconfirmation).
(f) RESPONSIBILITIES OF THE COMMISSIONER OF THE IMMIGRATION AND NATURALIZATION SERVICE.—As part of the confirmation
system, the Commissioner of the Immigration and Naturalization
Service, in consultation with the entity responsible for administration of the system, shall establish a reliable, secure method, which,
within the time periods specified under subsections (b) and (c),
compares the name and alien identification or authorization number
described in section 403(a)(1)(B) of this division which are provided
in an inquiry against such information maintained by the Commissioner in order to confirm (or not confirm) the validity of the
information provided, the correspondence of the name and number,
and whether the alien is authorized to be employed in the United
States.
(g) UPDATING INFORMATION.—The Commissioners of Social
Security and the Immigration and Naturalization Service shall
update their information in a manner that promotes the maximum
accuracy and shall provide a process for the prompt correction
of erroneous information, including instances in which it is brought
to their attention in the secondary verification process described
in subsection (c).
(h) LIMITATION ON USE OF THE CONFIRMATION SYSTEM AND
ANY RELATED SYSTEMS.—
(1) IN GENERAL.—Notwithstanding any other provision of
law, nothing in this subtitle shall be construed to permit or
allow any department, bureau, or other agency of the United
States Government to utilize any information, data base, or
other records assembled under this subtitle for any other purpose other than as provided for under a pilot program.
(2) NO NATIONAL IDENTIFICATION CARD.—Nothing in this
subtitle shall be construed to authorize, directly or indirectly,
the issuance or use of national identification cards or the
establishment of a national identification card.
SEC. 405. REPORTS.

The Attorney General shall submit to the Committees on the
Judiciary of the House of Representatives and of the Senate reports
on the pilot programs within 3 months after the end of the third
and fourth years in which the programs are in effect. Such reports
shall—
(1) assess the degree of fraudulent attesting of United
States citizenship,

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110 STAT. 3009–666

(2) include recommendations on whether or not the pilot
programs should be continued or modified, and
(3) assess the benefits of the pilot programs to employers
and the degree to which they assist in the enforcement of
section 274A.

Subtitle B—Other Provisions Relating to
Employer Sanctions
SEC. 411. LIMITING LIABILITY FOR CERTAIN TECHNICAL VIOLATIONS
OF PAPERWORK REQUIREMENTS.

(a) IN GENERAL.—Section 274A(b) (8 U.S.C. 1324a(b)) is amended by adding at the end the following new paragraph:
‘‘(6) GOOD FAITH COMPLIANCE.—
‘‘(A) IN GENERAL.—Except as provided in subparagraphs (B) and (C), a person or entity is considered to
have complied with a requirement of this subsection notwithstanding a technical or procedural failure to meet such
requirement if there was a good faith attempt to comply
with the requirement.
‘‘(B) EXCEPTION IF FAILURE TO CORRECT AFTER
NOTICE.—Subparagraph (A) shall not apply if—
‘‘(i) the Service (or another enforcement agency)
has explained to the person or entity the basis for
the failure,
‘‘(ii) the person or entity has been provided a period
of not less than 10 business days (beginning after
the date of the explanation) within which to correct
the failure, and
‘‘(iii) the person or entity has not corrected the
failure voluntarily within such period.
‘‘(C) EXCEPTION FOR PATTERN OR PRACTICE VIOLATORS.—Subparagraph (A) shall not apply to a person or
entity that has or is engaging in a pattern or practice
of violations of subsection (a)(1)(A) or (a)(2).’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply to failures occurring on or after the date of the enactment of this Act.
SEC. 412. PAPERWORK AND OTHER CHANGES IN THE EMPLOYER SANCTIONS PROGRAM.

(a) REDUCING THE NUMBER OF DOCUMENTS ACCEPTED FOR
EMPLOYMENT VERIFICATION.—Section 274A(b)(1) (8 U.S.C.
1324a(b)(1)) is amended—
(1) in subparagraph (B)—
(A) by striking clauses (ii) through (iv),
(B) in clause (v), by striking ‘‘or other alien registration
card, if the card’’ and inserting ‘‘, alien registration card,
or other document designated by the Attorney General,
if the document’’ and redesignating such clause as clause
(ii), and
(C) in clause (ii), as so redesignated—
(i) in subclause (I), by striking ‘‘or’’ before ‘‘such
other personal identifying information’’ and inserting
‘‘and’’,
(ii) by striking ‘‘and’’ at the end of subclause (I),

8 USC 1324a
note.

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PUBLIC LAW 104–208—SEPT. 30, 1996

(iii) by striking the period at the end of subclause
(II) and inserting ‘‘, and’’, and
(iv) by adding at the end the following new subclause:
‘‘(III) contains security features to make it
resistant to tampering, counterfeiting, and fraudulent use.’’;
(2) in subparagraph (C)—
(A) by adding ‘‘or’’ at the end of clause (i),
(B) by striking clause (ii), and
(C) by redesignating clause (iii) as clause (ii); and
(3) by adding at the end the following new subparagraph:
‘‘(E) AUTHORITY TO PROHIBIT USE OF CERTAIN DOCUMENTS.—If the Attorney General finds, by regulation, that
any document described in subparagraph (B), (C), or (D)
as establishing employment authorization or identity does
not reliably establish such authorization or identity or is
being used fraudulently to an unacceptable degree, the
Attorney General may prohibit or place conditions on its
use for purposes of this subsection.’’.
(b) REDUCTION OF PAPERWORK FOR CERTAIN EMPLOYEES.—Section 274A(a) (8 U.S.C. 1324a(a)) is amended by adding at the
end the following new paragraph:
‘‘(6) TREATMENT OF DOCUMENTATION FOR CERTAIN EMPLOYEES.—
‘‘(A) IN GENERAL.—For purposes of this section, if—
‘‘(i) an individual is a member of a collectivebargaining unit and is employed, under a collective
bargaining agreement entered into between one or
more employee organizations and an association of two
or more employers, by an employer that is a member
of such association, and
‘‘(ii) within the period specified in subparagraph
(B), another employer that is a member of the association (or an agent of such association on behalf of the
employer) has complied with the requirements of subsection (b) with respect to the employment of the
individual,
the subsequent employer shall be deemed to have complied
with the requirements of subsection (b) with respect to
the hiring of the employee and shall not be liable for
civil penalties described in subsection (e)(5).
‘‘(B) PERIOD.—The period described in this subparagraph is 3 years, or, if less, the period of time that the
individual is authorized to be employed in the United
States.
‘‘(C) LIABILITY.—
‘‘(i) IN GENERAL.—If any employer that is a member
of an association hires for employment in the United
States an individual and relies upon the provisions
of subparagraph (A) to comply with the requirements
of subsection (b) and the individual is an alien not
authorized to work in the United States, then for the
purposes of paragraph (1)(A), subject to clause (ii),
the employer shall be presumed to have known at
the time of hiring or afterward that the individual

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–668

was an alien not authorized to work in the United
States.
‘‘(ii) REBUTTAL OF PRESUMPTION.—The presumption established by clause (i) may be rebutted by the
employer only through the presentation of clear and
convincing evidence that the employer did not know
(and could not reasonably have known) that the
individual at the time of hiring or afterward was an
alien not authorized to work in the United States.
‘‘(iii) EXCEPTION.—Clause (i) shall not apply in any
prosecution under subsection (f)(1).’’.
(c) ELIMINATION OF DATED PROVISIONS.—Section 274A (8 U.S.C.
1324a) is amended by striking subsections (i) through (n).
(d) CLARIFICATION OF APPLICATION TO FEDERAL GOVERNMENT.—
Section 274A(a) (8 U.S.C. 1324a(a)), as amended by subsection
(b), is amended by adding at the end the following new paragraph:
‘‘(7) APPLICATION TO FEDERAL GOVERNMENT.—For purposes
of this section, the term ‘entity’ includes an entity in any
branch of the Federal Government.’’.
(e) EFFECTIVE DATES.—
(1) The amendments made by subsection (a) shall apply
with respect to hiring (or recruitment or referral) occurring
on or after such date (not later than 12 months after the
date of the enactment of this Act) as the Attorney General
shall designate.
(2) The amendment made by subsection (b) shall apply
to individuals hired on or after 60 days after the date of
the enactment of this Act.
(3) The amendment made by subsection (c) shall take effect
on the date of the enactment of this Act.
(4) The amendment made by subsection (d) applies to hiring
occurring before, on, or after the date of the enactment of
this Act, but no penalty shall be imposed under subsection
(e) or (f) of section 274A of the Immigration and Nationality
Act for such hiring occurring before such date.

8 USC 1324a
note.

SEC. 413. REPORT ON ADDITIONAL AUTHORITY OR RESOURCES
NEEDED FOR ENFORCEMENT OF EMPLOYER SANCTIONS
PROVISIONS.

(a) IN GENERAL.—Not later than 1 year after the date of the
enactment of this Act, the Attorney General shall submit to the
Committees on the Judiciary of the House of Representatives and
of the Senate a report on any additional authority or resources
needed—
(1) by the Immigration and Naturalization Service in order
to enforce section 274A of the Immigration and Nationality
Act, or
(2) by Federal agencies in order to carry out the Executive
Order of February 13, 1996 (entitled ‘‘Economy and Efficiency
in Government Procurement Through Compliance with Certain
Immigration and Naturalization Act Provisions’’) and to expand
the restrictions in such order to cover agricultural subsidies,
grants, job training programs, and other Federally subsidized
assistance programs.
(b) REFERENCE TO INCREASED AUTHORIZATION OF APPROPRIATIONS.—For provision increasing the authorization of appropriations

8 USC 1324a
note.

110 STAT. 3009–669

PUBLIC LAW 104–208—SEPT. 30, 1996

for investigators for violations of sections 274 and 274A of the
Immigration and Nationality Act, see section 131 of this division.
SEC. 414. REPORTS ON EARNINGS OF ALIENS NOT AUTHORIZED TO
WORK.

8 USC 1360 note.

(a) IN GENERAL.—Subsection (c) of section 290 (8 U.S.C. 1360)
is amended to read as follows:
‘‘(c)(1) Not later than 3 months after the end of each fiscal
year (beginning with fiscal year 1996), the Commissioner of Social
Security shall report to the Committees on the Judiciary of the
House of Representatives and the Senate on the aggregate quantity
of social security account numbers issued to aliens not authorized
to be employed, with respect to which, in such fiscal year, earnings
were reported to the Social Security Administration.
‘‘(2) If earnings are reported on or after January 1, 1997,
to the Social Security Administration on a social security account
number issued to an alien not authorized to work in the United
States, the Commissioner of Social Security shall provide the Attorney General with information regarding the name and address
of the alien, the name and address of the person reporting the
earnings, and the amount of the earnings. The information shall
be provided in an electronic form agreed upon by the Commissioner
and the Attorney General.’’.
(b) REPORT ON FRAUDULENT USE OF SOCIAL SECURITY ACCOUNT
NUMBERS.—The Commissioner of Social Security shall transmit
to the Attorney General, by not later than 1 year after the date
of the enactment of this Act, a report on the extent to which
social security account numbers and cards are used by aliens for
fraudulent purposes.
SEC. 415. AUTHORIZING MAINTENANCE OF CERTAIN INFORMATION
ON ALIENS.

Section 264 (8 U.S.C. 1304) is amended by adding at the end
the following new subsection:
‘‘(f) Notwithstanding any other provision of law, the Attorney
General is authorized to require any alien to provide the alien’s
social security account number for purposes of inclusion in any
record of the alien maintained by the Attorney General or the
Service.’’.
SEC. 416. SUBPOENA AUTHORITY.

Section 274A(e)(2) (8 U.S.C. 1324a(e)(2)) is amended—
(1) by striking ‘‘and’’ at the end of subparagraph (A);
(2) by striking the period at the end of subparagraph (B)
and inserting ‘‘, and’’; and
(3) by inserting after subparagraph (B) the following:
‘‘(C) immigration officers designated by the Commissioner may compel by subpoena the attendance of witnesses
and the production of evidence at any designated place
prior to the filing of a complaint in a case under paragraph
(2).’’.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–670

Subtitle C—Unfair Immigration-Related
Employment Practices
SEC. 421. TREATMENT OF CERTAIN DOCUMENTARY PRACTICES AS
UNFAIR IMMIGRATION-RELATED EMPLOYMENT PRACTICES.

(a) IN GENERAL.—Section 274B(a)(6) (8 U.S.C. 1324b(a)(6)) is
amended—
(1) by striking ‘‘For purposes of paragraph (1), a’’ and
inserting ‘‘A’’; and
(2) by striking ‘‘relating to the hiring of individuals’’ and
inserting the following: ‘‘if made for the purpose or with the
intent of discriminating against an individual in violation of
paragraph (1)’’.
(b) EFFECTIVE DATE.—The amendments made by subsection
(a) shall apply to requests made on or after the date of the enactment of this Act.

TITLE V—RESTRICTIONS ON BENEFITS
FOR ALIENS
Subtitle A—Eligibility of Aliens for Public
Assistance and Benefits
SEC. 501. EXCEPTION TO INELIGIBILITY FOR PUBLIC BENEFITS FOR
CERTAIN BATTERED ALIENS.

Section 431 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1641) is amended by
adding at the end the following new subsection:
‘‘(c) TREATMENT OF CERTAIN BATTERED ALIENS AS QUALIFIED
ALIENS.—For purposes of this title, the term ‘qualified alien’
includes—
‘‘(1) an alien who—
‘‘(A) has been battered or subjected to extreme cruelty
in the United States by a spouse or a parent, or by a
member of the spouse or parent’s family residing in the
same household as the alien and the spouse or parent
consented to, or acquiesced in, such battery or cruelty,
but only if (in the opinion of the Attorney General, which
opinion is not subject to review by any court) there is
a substantial connection between such battery or cruelty
and the need for the benefits to be provided; and
‘‘(B) has been approved or has a petition pending which
sets forth a prima facie case for—
‘‘(i) status as a spouse or a child of a United
States citizen pursuant to clause (ii), (iii), or (iv) of
section 204(a)(1)(A) of the Immigration and Nationality
Act,
‘‘(ii) classification pursuant to clause (ii) or (iii)
of section 204(a)(1)(B) of the Act,
‘‘(iii) suspension of deportation and adjustment of
status pursuant to section 244(a)(3) of such Act, or

8 USC 1324b
note.

110 STAT. 3009–671

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(iv) status as a spouse or child of a United States
citizen pursuant to clause (i) of section 204(a)(1)(A)
of such Act, or classification pursuant to clause (i)
of section 204(a)(1)(B) of such Act; or
‘‘(2) an alien—
‘‘(A) whose child has been battered or subjected to
extreme cruelty in the United States by a spouse or a
parent of the alien (without the active participation of
the alien in the battery or cruelty), or by a member of
the spouse or parent’s family residing in the same household as the alien and the spouse or parent consented or
acquiesced to such battery or cruelty, and the alien did
not actively participate in such battery or cruelty, but
only if (in the opinion of the Attorney General, which
opinion is not subject to review by any court) there is
a substantial connection between such battery or cruelty
and the need for the benefits to be provided; and
‘‘(B) who meets the requirement of clause (ii) of
subparagraph (A).
This subsection shall not apply to an alien during any period
in which the individual responsible for such battery or cruelty
resides in the same household or family eligibility unit as the
individual subjected to such battery or cruelty.’’.
8 USC 1621 note.

SEC. 502. PILOT PROGRAMS ON LIMITING ISSUANCE OF DRIVER’S
LICENSES TO ILLEGAL ALIENS.

(a) IN GENERAL.—Pursuant to guidelines prescribed by the
Attorney General not later than 6 months after the date of the
enactment of this Act, all States may conduct pilot programs within
their State to determine the viability, advisability, and costeffectiveness of the State’s denying driver’s licenses to aliens who
are not lawfully present in the United States. Under a pilot program
a State may deny a driver’s license to aliens who are not lawfully
present in the United States. Such program shall be conducted
in cooperation with relevant State and local authorities.
(b) REPORT.—Not later than 3 years after the date of the
enactment of this Act, the Attorney General shall submit a report
to the Judiciary Committees of the House of Representatives and
of the Senate on the results of the pilot programs conducted under
subsection (a).
SEC. 503. INELIGIBILITY OF ALIENS NOT LAWFULLY PRESENT FOR
SOCIAL SECURITY BENEFITS.

(a) IN GENERAL.—Section 202 of the Social Security Act (42
U.S.C. 402) is amended by adding at the end the following new
subsection:
‘‘Limitation on Payments to Aliens

42 USC 402 note.

‘‘(y) Notwithstanding any other provision of law, no monthly
benefit under this title shall be payable to any alien in the United
States for any month during which such alien is not lawfully
present in the United States as determined by the Attorney General.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply with respect to benefits for which applications are
filed on or after the first day of the first month that begins at
least 60 days after the date of the enactment of this Act.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–672

SEC. 504. PROCEDURES FOR REQUIRING PROOF OF CITIZENSHIP FOR
FEDERAL PUBLIC BENEFITS.

Section 432(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1642) is amended—
(1) by inserting ‘‘(1)’’ after the dash, and
(2) by adding at the end the following:
‘‘(2) Not later than 18 months after the date of the enactment
of this Act, the Attorney General, in consultation with the Secretary
of Health and Human Services, shall also establish procedures
for a person applying for a Federal public benefit (as defined in
section 401(c)) to provide proof of citizenship in a fair and nondiscriminatory manner.’’.
SEC. 505. LIMITATION ON ELIGIBILITY FOR PREFERENTIAL TREATMENT OF ALIENS NOT LAWFULLY PRESENT ON BASIS
OF RESIDENCE FOR HIGHER EDUCATION BENEFITS.

8 USC 1623.

(a) IN GENERAL.—Notwithstanding any other provision of law,
an alien who is not lawfully present in the United States shall
not be eligible on the basis of residence within a State (or a
political subdivision) for any postsecondary education benefit unless
a citizen or national of the United States is eligible for such a
benefit (in no less an amount, duration, and scope) without regard
to whether the citizen or national is such a resident.
(b) EFFECTIVE DATE.—This section shall apply to benefits provided on or after July 1, 1998.
SEC. 506. STUDY AND REPORT ON ALIEN STUDENT ELIGIBILITY FOR
POSTSECONDARY FEDERAL STUDENT FINANCIAL ASSISTANCE.

(a) GAO STUDY AND REPORT.—
(1) STUDY.—The Comptroller General shall conduct a study
to determine the extent to which aliens who are not lawfully
admitted for permanent residence are receiving postsecondary
Federal student financial assistance.
(2) REPORT.—Not later than 1 year after the date of the
enactment of this Act, the Comptroller General shall submit
a report to the appropriate committees of the Congress on
the study conducted under paragraph (1).
(b) REPORT ON COMPUTER MATCHING PROGRAM.—
(1) IN GENERAL.—Not later than one year after the date
of the enactment of this Act, the Secretary of Education and
the Commissioner of Social Security shall jointly submit to
the appropriate committees of the Congress a report on the
computer matching program of the Department of Education
under section 484(p) of the Higher Education Act of 1965.
(2) REPORT ELEMENTS.—The report under paragraph (1)
shall include the following:
(A) An assessment by the Secretary and the Commissioner of the effectiveness of the computer matching program, and a justification for such assessment.
(B) The ratio of successful matches under the program
to inaccurate matches.
(C) Such other information as the Secretary and the
Commissioner jointly consider appropriate.
(c) APPROPRIATE COMMITTEES OF THE CONGRESS.—For purposes
of this section the term ‘‘appropriate committees of the Congress’’
means the Committee on Economic and Educational Opportunities

8 USC 1611 note.

110 STAT. 3009–673

PUBLIC LAW 104–208—SEPT. 30, 1996

and the Committee on the Judiciary of the House of Representatives
and the Committee on Labor and Human Resources and the
Committee on the Judiciary of the Senate.
SEC. 507. VERIFICATION OF IMMIGRATION STATUS FOR PURPOSES
OF SOCIAL SECURITY AND HIGHER EDUCATIONAL
ASSISTANCE.

(a) SOCIAL SECURITY ACT STATE INCOME AND ELIGIBILITY VERIFICATION SYSTEMS.—Section 1137(d)(4)(B)(i)) of the Social Security
Act (42 U.S.C. 1320b–7(d)(4)(B)(i)) is amended to read as follows:
‘‘(i) the State shall transmit to the Immigration
and Naturalization Service either photostatic or other
similar copies of such documents, or information from
such documents, as specified by the Immigration and
Naturalization Service, for official verification,’’.
(b) ELIGIBILITY FOR ASSISTANCE UNDER HIGHER EDUCATION
ACT OF 1965.—Section 484(g)(4)(B)(i) of the Higher Education Act
of 1965 (20 U.S.C. 1091(g)(4)(B)(i)) is amended to read as follows:
‘‘(i) the institution shall transmit to the Immigration and Naturalization Service either photostatic or
other similar copies of such documents, or information
from such documents, as specified by the Immigration
and Naturalization Service, for official verification,’’.
SEC. 508. NO VERIFICATION REQUIREMENT FOR NONPROFIT CHARITABLE ORGANIZATIONS.

Section 432 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1642) is amended by
adding at the end the following new subsection:
‘‘(d) NO VERIFICATION REQUIREMENT FOR NONPROFIT CHARITABLE ORGANIZATIONS.—Subject to subsection (a), a nonprofit charitable organization, in providing any Federal public benefit (as
defined in section 401(c)) or any State or local public benefit (as
defined in section 411(c)), is not required under this title to determine, verify, or otherwise require proof of eligibility of any applicant
for such benefits.’’.
SEC. 509. GAO STUDY OF PROVISION OF MEANS-TESTED PUBLIC BENEFITS TO ALIENS WHO ARE NOT QUALIFIED ALIENS ON
BEHALF OF ELIGIBLE INDIVIDUALS.

Not later than 180 days after the date of the enactment of
this Act, the Comptroller General shall submit to the Committees
on the Judiciary of the House of Representatives and of the Senate
and to the Inspector General of the Department of Justice a report
on the extent to which means-tested public benefits are being paid
or provided to aliens who are not qualified aliens (as defined in
section 431(b) of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996) in order to provide such benefits to
individuals who are United States citizens or qualified aliens (as
so defined). Such report shall address the locations in which such
benefits are provided and the incidence of fraud or misrepresentation in connection with the provision of such benefits.
SEC. 510. TRANSITION FOR ALIENS CURRENTLY RECEIVING BENEFITS
UNDER THE FOOD STAMP PROGRAM.

Effective as if included in the enactment of the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996,

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110 STAT. 3009–674

subclause (I) of section 402(a)(2)(D)(ii) (8 U.S.C. 1612(a)(2)(D)(ii))
is amended to read as follows:
‘‘(I) IN GENERAL.—With respect to the specified
Federal program described in paragraph (3)(B),
ineligibility under paragraph (1) shall not apply
until April 1, 1997, to an alien who received benefits under such program on the date of enactment
of this Act, unless such alien is determined to
be ineligible to receive such benefits under the
Food Stamp Act of 1977. The State agency shall
recertify the eligibility of all such aliens during
the period beginning April 1, 1997, and ending
August 22, 1997.’’.

Subtitle B—Public Charge Exclusion
SEC. 531. GROUND FOR EXCLUSION.

(a) IN GENERAL.—Paragraph (4) of section 212(a) (8 U.S.C.
1182(a)) is amended to read as follows:
‘‘(4) PUBLIC CHARGE.—
‘‘(A) IN GENERAL.—Any alien who, in the opinion of
the consular officer at the time of application for a visa,
or in the opinion of the Attorney General at the time
of application for admission or adjustment of status, is
likely at any time to become a public charge is excludable.
‘‘(B) FACTORS TO BE TAKEN INTO ACCOUNT.—(i) In determining whether an alien is excludable under this paragraph, the consular officer or the Attorney General shall
at a minimum consider the alien’s—
‘‘(I) age;
‘‘(II) health;
‘‘(III) family status;
‘‘(IV) assets, resources, and financial status; and
‘‘(V) education and skills.
‘‘(ii) In addition to the factors under clause (i), the
consular officer or the Attorney General may also consider
any affidavit of support under section 213A for purposes
of exclusion under this paragraph.
‘‘(C) FAMILY-SPONSORED IMMIGRANTS.—Any alien who
seeks admission or adjustment of status under a visa number issued under section 201(b)(2) or 203(a) is excludable
under this paragraph unless—
‘‘(i) the alien has obtained—
‘‘(I) status as a spouse or a child of a United
States citizen pursuant to clause (ii), (iii), or (iv)
of section 204(a)(1)(A), or
‘‘(II) classification pursuant to clause (ii) or
(iii) of section 204(a)(1)(B); or
‘‘(ii) the person petitioning for the alien’s admission
(including any additional sponsor required under section 213A(f)) has executed an affidavit of support
described in section 213A with respect to such alien.
‘‘(D) CERTAIN EMPLOYMENT-BASED IMMIGRANTS.—Any
alien who seeks admission or adjustment of status under
a visa number issued under section 203(b) by virtue of
a classification petition filed by a relative of the alien

110 STAT. 3009–675

8 USC 1182 note.

PUBLIC LAW 104–208—SEPT. 30, 1996

(or by an entity in which such relative has a significant
ownership interest) is excludable under this paragraph
unless such relative has executed an affidavit of support
described in section 213A with respect to such alien.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply to applications submitted on or after such date, not
earlier than 30 days and not later than 60 days after the date
the Attorney General promulgates under section 551(c)(2) of this
division a standard form for an affidavit of support, as the Attorney
General shall specify, but subparagraphs (C) and (D) of section
212(a)(4) of the Immigration and Nationality Act, as so amended,
shall not apply to applications with respect to which an official
interview with an immigration officer was conducted before such
effective date.

Subtitle C—Affidavits of Support
SEC. 551. REQUIREMENTS FOR SPONSOR’S AFFIDAVIT OF SUPPORT.

(a) IN GENERAL.—Section 213A (8 U.S.C. 1183a), as inserted
by section 423(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, is amended to read as follows:
‘‘REQUIREMENTS

FOR SPONSOR’S AFFIDAVIT OF SUPPORT

‘‘SEC. 213A. (a) ENFORCEABILITY.—
‘‘(1) TERMS OF AFFIDAVIT.—No affidavit of support may
be accepted by the Attorney General or by any consular officer
to establish that an alien is not excludable as a public charge
under section 212(a)(4) unless such affidavit is executed by
a sponsor of the alien as a contract—
‘‘(A) in which the sponsor agrees to provide support
to maintain the sponsored alien at an annual income that
is not less than 125 percent of the Federal poverty line
during the period in which the affidavit is enforceable;
‘‘(B) that is legally enforceable against the sponsor
by the sponsored alien, the Federal Government, any State
(or any political subdivision of such State), or by any other
entity that provides any means-tested public benefit (as
defined in subsection (e)), consistent with the provisions
of this section; and
‘‘(C) in which the sponsor agrees to submit to the
jurisdiction of any Federal or State court for the purpose
of actions brought under subsection (b)(2).
‘‘(2) PERIOD OF ENFORCEABILITY.—An affidavit of support
shall be enforceable with respect to benefits provided for an
alien before the date the alien is naturalized as a citizen
of the United States, or, if earlier, the termination date provided
under paragraph (3).
‘‘(3) TERMINATION OF PERIOD OF ENFORCEABILITY UPON
COMPLETION OF REQUIRED PERIOD OF EMPLOYMENT, ETC.—
‘‘(A) IN GENERAL.—An affidavit of support is not
enforceable after such time as the alien (i) has worked
40 qualifying quarters of coverage as defined under title
II of the Social Security Act or can be credited with such
qualifying quarters as provided under subparagraph (B),
and (ii) in the case of any such qualifying quarter creditable
for any period beginning after December 31, 1996, did

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110 STAT. 3009–676

not receive any Federal means-tested public benefit (as
provided under section 403 of the Personal Responsibility
and Work Opportunity Reconciliation Act of 1996) during
any such period.
‘‘(B) QUALIFYING QUARTERS.—For purposes of this section, in determining the number of qualifying quarters
of coverage under title II of the Social Security Act an
alien shall be credited with—
‘‘(i) all of the qualifying quarters of coverage as
defined under title II of the Social Security Act worked
by a parent of such alien while the alien was under
age 18, and
‘‘(ii) all of the qualifying quarters worked by a
spouse of such alien during their marriage and the
alien remains married to such spouse or such spouse
is deceased.
No such qualifying quarter of coverage that is creditable
under title II of the Social Security Act for any period
beginning after December 31, 1996, may be credited to
an alien under clause (i) or (ii) if the parent or spouse
(as the case may be) of such alien received any Federal
means-tested public benefit (as provided under section 403
of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996) during the period for which such
qualifying quarter of coverage is so credited.
‘‘(C) PROVISION OF INFORMATION TO SAVE SYSTEM.—
The Attorney General shall ensure that appropriate
information regarding the application of this paragraph
is provided to the system for alien verification of eligibility
(SAVE) described in section 1137(d)(3) of the Social Security Act.
‘‘(b) REIMBURSEMENT OF GOVERNMENT EXPENSES.—
‘‘(1) REQUEST FOR REIMBURSEMENT.—
‘‘(A) REQUIREMENT.—Upon notification that a sponsored alien has received any means-tested public benefit,
the appropriate nongovernmental entity which provided
such benefit or the appropriate entity of the Federal
Government, a State, or any political subdivision of a State
shall request reimbursement by the sponsor in an amount
which is equal to the unreimbursed costs of such benefit.
‘‘(B) REGULATIONS.—The Attorney General, in consultation with the heads of other appropriate Federal agencies,
shall prescribe such regulations as may be necessary to
carry out subparagraph (A).
‘‘(2) ACTIONS TO COMPEL REIMBURSEMENT.—
‘‘(A) IN CASE OF NONRESPONSE.—If within 45 days after
a request for reimbursement under paragraph (1)(A), the
appropriate entity has not received a response from the
sponsor indicating a willingness to commence payment an
action may be brought against the sponsor pursuant to
the affidavit of support.
‘‘(B) IN CASE OF FAILURE TO PAY.—If the sponsor fails
to abide by the repayment terms established by the appropriate entity, the entity may bring an action against the
sponsor pursuant to the affidavit of support.
‘‘(C) LIMITATION ON ACTIONS.—No cause of action may
be brought under this paragraph later than 10 years after

110 STAT. 3009–677

PUBLIC LAW 104–208—SEPT. 30, 1996

the date on which the sponsored alien last received any
means-tested public benefit to which the affidavit of support applies.
‘‘(3) USE OF COLLECTION AGENCIES.—If the appropriate
entity under paragraph (1)(A) requests reimbursement from
the sponsor or brings an action against the sponsor pursuant
to the affidavit of support, the appropriate entity may appoint
or hire an individual or other person to act on behalf of such
entity acting under the authority of law for purposes of collecting any amounts owed.
‘‘(c) REMEDIES.—Remedies available to enforce an affidavit of
support under this section include any or all of the remedies
described in section 3201, 3203, 3204, or 3205 of title 28, United
States Code, as well as an order for specific performance and
payment of legal fees and other costs of collection, and include
corresponding remedies available under State law. A Federal agency
may seek to collect amounts owed under this section in accordance
with the provisions of subchapter II of chapter 37 of title 31,
United States Code.
‘‘(d) NOTIFICATION OF CHANGE OF ADDRESS.—
‘‘(1) GENERAL REQUIREMENT.—The sponsor shall notify the
Attorney General and the State in which the sponsored alien
is currently a resident within 30 days of any change of address
of the sponsor during the period in which an affidavit of support
is enforceable.
‘‘(2) PENALTY.—Any person subject to the requirement of
paragraph (1) who fails to satisfy such requirement shall, after
notice and opportunity to be heard, be subject to a civil penalty
of—
‘‘(A) not less than $250 or more than $2,000, or
‘‘(B) if such failure occurs with knowledge that the
sponsored alien has received any means-tested public benefits (other than benefits described in section 401(b),
403(c)(2), or 411(b) of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996) not less than
$2,000 or more than $5,000.
The Attorney General shall enforce this paragraph under appropriate regulations.
‘‘(e) JURISDICTION.—An action to enforce an affidavit of support
executed under subsection (a) may be brought against the sponsor
in any appropriate court—
‘‘(1) by a sponsored alien, with respect to financial support;
or
‘‘(2) by the appropriate entity of the Federal Government,
a State or any political subdivision of a State, or by any other
nongovernmental entity under subsection (b)(2), with respect
to reimbursement.
‘‘(f) SPONSOR DEFINED.—
‘‘(1) IN GENERAL.—For purposes of this section the term
‘sponsor’ in relation to a sponsored alien means an individual
who executes an affidavit of support with respect to the sponsored alien and who—
‘‘(A) is a citizen or national of the United States or
an alien who is lawfully admitted to the United States
for permanent residence;
‘‘(B) is at least 18 years of age;

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110 STAT. 3009–678

‘‘(C) is domiciled in any of the several States of the
United States, the District of Columbia, or any territory
or possession of the United States;
‘‘(D) is petitioning for the admission of the alien under
section 204; and
‘‘(E) demonstrates (as provided in paragraph (6)) the
means to maintain an annual income equal to at least
125 percent of the Federal poverty line.
‘‘(2) INCOME REQUIREMENT CASE.—Such term also includes
an individual who does not meet the requirement of paragraph
(1)(E) but accepts joint and several liability together with an
individual under paragraph (5).
‘‘(3) ACTIVE DUTY ARMED SERVICES CASE.—Such term also
includes an individual who does not meet the requirement
of paragraph (1)(E) but is on active duty (other than active
duty for training) in the Armed Forces of the United States,
is petitioning for the admission of the alien under section
204 as the spouse or child of the individual, and demonstrates
(as provided in paragraph (6)) the means to maintain an annual
income equal to at least 100 percent of the Federal poverty
line.
‘‘(4) CERTAIN EMPLOYMENT-BASED IMMIGRANTS CASE.—Such
term also includes an individual—
‘‘(A) who does not meet the requirement of paragraph
(1)(D), but is the relative of the sponsored alien who filed
a classification petition for the sponsored alien as an
employment-based immigrant under section 203(b) or who
has a significant ownership interest in the entity that
filed such a petition; and
‘‘(B)(i) who demonstrates (as provided under paragraph
(6)) the means to maintain an annual income equal to
at least 125 percent of the Federal poverty line, or
‘‘(ii) does not meet the requirement of paragraph (1)(E)
but accepts joint and several liability together with an
individual under paragraph (5).
‘‘(5) NON-PETITIONING CASE.—Such term also includes an
individual who does not meet the requirement of paragraph
(1)(D) but who accepts joint and several liability with a petitioning sponsor under paragraph (2) or relative of an employmentbased immigrant under paragraph (4) and who demonstrates
(as provided under paragraph (6)) the means to maintain an
annual income equal to at least 125 percent of the Federal
poverty line.
‘‘(6) DEMONSTRATION OF MEANS TO MAINTAIN INCOME.—
‘‘(A) IN GENERAL.—
‘‘(i) METHOD OF DEMONSTRATION.—For purposes of
this section, a demonstration of the means to maintain
income shall include provision of a certified copy of
the individual’s Federal income tax return for the
individual’s 3 most recent taxable years and a written
statement, executed under oath or as permitted under
penalty of perjury under section 1746 of title 28, United
States Code, that the copies are certified copies of
such returns.
‘‘(ii) FLEXIBILITY.—For purposes of this section,
aliens may demonstrate the means to maintain income

110 STAT. 3009–679

8 USC 1183a
note.
8 USC 1183a
note.

PUBLIC LAW 104–208—SEPT. 30, 1996

through demonstration of significant assets of the sponsored alien or of the sponsor, if such assets are available for the support of the sponsored alien.
‘‘(iii) PERCENT OF POVERTY.—For purposes of this
section, a reference to an annual income equal to at
least a particular percentage of the Federal poverty
line means an annual income equal to at least such
percentage of the Federal poverty line for a family
unit of a size equal to the number of members of
the sponsor’s household (including family and non-family dependents) plus the total number of other dependents and aliens sponsored by that sponsor.
‘‘(B) LIMITATION.—The Secretary of State, or the Attorney General in the case of adjustment of status, may provide that the demonstration under subparagraph (A)
applies only to the most recent taxable year.
‘‘(h) FEDERAL POVERTY LINE DEFINED.—For purposes of this
section, the term ‘Federal poverty line’ means the level of income
equal to the official poverty line (as defined by the Director of
the Office of Management and Budget, as revised annually by
the Secretary of Health and Human Services, in accordance with
section 673(2) of the Omnibus Budget Reconciliation Act of 1981
(42 U.S.C. 9902)) that is applicable to a family of the size involved.
‘‘(i) SPONSOR’S SOCIAL SECURITY ACCOUNT NUMBER REQUIRED
TO BE PROVIDED.—(1) An affidavit of support shall include the
social security account number of each sponsor.
‘‘(2) The Attorney General shall develop an automated system
to maintain the social security account number data provided under
paragraph (1).
‘‘(3) The Attorney General shall submit an annual report to
the Committees on the Judiciary of the House of Representatives
and the Senate setting forth—
‘‘(A) for the most recent fiscal year for which data are
available the number of sponsors under this section and the
number of sponsors in compliance with the financial obligations
of this section; and
‘‘(B) a comparison of such numbers with the numbers of
such sponsors for the preceding fiscal year.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 421(a)(1) and section 422(a)(1) of the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996
(8 U.S.C. 1631(a)(1), 1632(a)(1)) are each amended by inserting
‘‘and as amended by section 551(a) of the Illegal Immigration
Reform and Immigrant Responsibility Act of 1996’’ after ‘‘section
423’’.
(2) Section 423 of such Act (8 U.S.C. 1138a note) is amended
by striking subsection (c).
(c) EFFECTIVE DATE; PROMULGATION OF FORM.—
(1) IN GENERAL.—The amendments made by this section
shall apply to affidavits of support executed on or after a
date specified by the Attorney General, which date shall be
not earlier than 60 days (and not later than 90 days) after
the date the Attorney General formulates the form for such
affidavits under paragraph (2).
(2) PROMULGATION OF FORM.—Not later than 90 days after
the date of the enactment of this Act, the Attorney General,
in consultation with the heads of other appropriate agencies,

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–680

shall promulgate a standard form for an affidavit of support
consistent with the provisions of section 213A of the Immigration and Nationality Act, as amended by subsection (a).
SEC. 552. INDIGENCE AND BATTERED SPOUSE AND CHILD EXCEPTIONS
TO FEDERAL ATTRIBUTION OF INCOME RULE.

Section 421 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1631) is amended by
adding at the end the following new subsection:
‘‘(e) INDIGENCE EXCEPTION.—
‘‘(1) IN GENERAL.—For an alien for whom an affidavit of
support under section 213A of the Immigration and Nationality
Act has been executed, if a determination described in paragraph (2) is made, the amount of income and resources of
the sponsor or the sponsor’s spouse which shall be attributed
to the sponsored alien shall not exceed the amount actually
provided for a period beginning on the date of such determination and ending 12 months after such date.
‘‘(2)
DETERMINATION
DESCRIBED.—A
determination
described in this paragraph is a determination by an agency
that a sponsored alien would, in the absence of the assistance
provided by the agency, be unable to obtain food and shelter,
taking into account the alien’s own income, plus any cash,
food, housing, or other assistance provided by other individuals,
including the sponsor. The agency shall notify the Attorney
General of each such determination, including the names of
the sponsor and the sponsored alien involved.
‘‘(f) SPECIAL RULE FOR BATTERED SPOUSE AND CHILD.—
‘‘(1) IN GENERAL.—Subject to paragraph (2) and notwithstanding any other provision of this section, subsection (a)
shall not apply to benefits—
‘‘(A) during a 12 month period if the alien demonstrates
that (i) the alien has been battered or subjected to extreme
cruelty in the United States by a spouse or a parent,
or by a member of the spouse or parent’s family residing
in the same household as the alien and the spouse or
parent consented to or acquiesced to such battery or cruelty,
or (ii) the alien’s child has been battered or subjected
to extreme cruelty in the United States by the spouse
or parent of the alien (without the active participation
of the alien in the battery or cruelty), or by a member
of the spouse’s or parent’s family residing in the same
household as the alien when the spouse or parent consented
or acquiesced to and the alien did not actively participate
in such battery or cruelty, and the battery or cruelty
described in clause (i) or (ii) (in the opinion of the agency
providing such public benefits, which opinion is not subject
to review by any court) has a substantial connection to
the need for the public benefits applied for; and
‘‘(B) after a 12 month period (regarding the batterer’s
income and resources only) if the alien demonstrates that
such battery or cruelty under subparagraph (A) has been
recognized in an order of a judge or administrative law
judge or a prior determination of the Immigration and
Naturalization Service, and that such battery or cruelty
(in the opinion of the agency providing such public benefits,

110 STAT. 3009–681

PUBLIC LAW 104–208—SEPT. 30, 1996

which opinion is not subject to review by any court) has
a substantial connection to the need for the benefits.
‘‘(2) LIMITATION.—The exception under paragraph (1) shall
not apply to benefits for an alien during any period in which
the individual responsible for such battery or cruelty resides
in the same household or family eligibility unit as the individual
who was subjected to such battery or cruelty.’’.
8 USC 1624.

SEC. 553. AUTHORITY OF STATES AND POLITICAL SUBDIVISIONS OF
STATES TO LIMIT ASSISTANCE TO ALIENS AND TO
DISTINGUISH AMONG CLASSES OF ALIENS IN PROVIDING
GENERAL CASH PUBLIC ASSISTANCE.

(a) IN GENERAL.—Subject to subsection (b) and notwithstanding
any other provision of law, a State or political subdivision of a
State is authorized to prohibit or otherwise limit or restrict the
eligibility of aliens or classes of aliens for programs of general
cash public assistance furnished under the law of the State or
a political subdivision of a State.
(b) LIMITATION.—The authority provided for under subsection
(a) may be exercised only to the extent that any prohibitions,
limitations, or restrictions imposed by a State or political subdivision of a State are not more restrictive than the prohibitions,
limitations, or restrictions imposed under comparable Federal programs. For purposes of this section, attribution to an alien of
a sponsor’s income and resources (as described in section 421 of
the Personal Responsibility and Work Opportunity Reconciliation
Act of 1996 (8 U.S.C. 1631)) for purposes of determining eligibility
for, and the amount of, benefits shall be considered less restrictive
than a prohibition of eligibility for such benefits.

Subtitle D—Miscellaneous Provisions
SEC. 561. INCREASED MAXIMUM CRIMINAL PENALTIES FOR FORGING
OR COUNTERFEITING SEAL OF A FEDERAL DEPARTMENT
OR AGENCY TO FACILITATE BENEFIT FRAUD BY AN
UNLAWFUL ALIEN.

Section 506 of title 18, United States Code, is amended to
read as follows:
‘‘§ 506. Seals of departments or agencies
‘‘(a) Whoever—
‘‘(1) falsely makes, forges, counterfeits, mutilates, or alters
the seal of any department or agency of the United States,
or any facsimile thereof;
‘‘(2) knowingly uses, affixes, or impresses any such fraudulently made, forged, counterfeited, mutilated, or altered seal
or facsimile thereof to or upon any certificate, instrument,
commission, document, or paper of any description; or
‘‘(3) with fraudulent intent, possesses, sells, offers for sale,
furnishes, offers to furnish, gives away, offers to give away,
transports, offers to transport, imports, or offers to import
any such seal or facsimile thereof, knowing the same to have
been so falsely made, forged, counterfeited, mutilated, or
altered,
shall be fined under this title, or imprisoned not more than 5
years, or both.

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110 STAT. 3009–682

‘‘(b) Notwithstanding subsection (a) or any other provision of
law, if a forged, counterfeited, mutilated, or altered seal of a department or agency of the United States, or any facsimile thereof,
is—
‘‘(1) so forged, counterfeited, mutilated, or altered;
‘‘(2) used, affixed, or impressed to or upon any certificate,
instrument, commission, document, or paper of any description;
or
‘‘(3) with fraudulent intent, possessed, sold, offered for sale,
furnished, offered to furnish, given away, offered to give away,
transported, offered to transport, imported, or offered to import,
with the intent or effect of facilitating an alien’s application for,
or receipt of, a Federal benefit to which the alien is not entitled,
the penalties which may be imposed for each offense under subsection (a) shall be two times the maximum fine, and 3 times
the maximum term of imprisonment, or both, that would otherwise
be imposed for an offense under subsection (a).
‘‘(c) For purposes of this section—
‘‘(1) the term ‘Federal benefit’ means—
‘‘(A) the issuance of any grant, contract, loan, professional license, or commercial license provided by any agency
of the United States or by appropriated funds of the United
States; and
‘‘(B) any retirement, welfare, Social Security, health
(including treatment of an emergency medical condition
in accordance with section 1903(v) of the Social Security
Act (19 U.S.C. 1396b(v))), disability, veterans, public housing, education, food stamps, or unemployment benefit, or
any similar benefit for which payments or assistance are
provided by an agency of the United States or by appropriated funds of the United States; and
‘‘(2) each instance of forgery, counterfeiting, mutilation,
or alteration shall constitute a separate offense under this
section.’’.
SEC. 562. TREATMENT OF EXPENSES SUBJECT TO EMERGENCY MEDICAL SERVICES EXCEPTION.

(a) IN GENERAL.—Subject to such amounts as are provided
in advance in appropriation Acts, each State or political subdivision
of a State that provides medical assistance for care and treatment
of an emergency medical condition (as defined in subsection (d))
through a public hospital or other public facility (including a nonprofit hospital that is eligible for an additional payment adjustment
under section 1886 of the Social Security Act) or through contract
with another hospital or facility to an individual who is an alien
not lawfully present in the United States is eligible for payment
from the Federal Government of its costs of providing such services,
but only to the extent that such costs are not otherwise reimbursed
through any other Federal program and cannot be recovered from
the alien or another person.
(b) CONFIRMATION OF IMMIGRATION STATUS REQUIRED.—No payment shall be made under this section with respect to services
furnished to an individual unless the immigration status of the
individual has been verified through appropriate procedures established by the Secretary of Health and Human Services and the
Attorney General.

8 USC 1369.

110 STAT. 3009–683

PUBLIC LAW 104–208—SEPT. 30, 1996

(c) ADMINISTRATION.—This section shall be administered by
the Attorney General, in consultation with the Secretary of Health
and Human Services.
(d) EMERGENCY MEDICAL CONDITION DEFINED.—For purposes
of this section, the term ‘‘emergency medical condition’’ means a
medical condition (including emergency labor and delivery) manifesting itself by acute symptoms of sufficient severity (including
severe pain) such that the absence of immediate medical attention
could reasonably be expected to result in—
(1) placing the patient’s health in serious jeopardy,
(2) serious impairment to bodily functions, or
(3) serious dysfunction of any bodily organ or part.
(e) EFFECTIVE DATE.—Subsection (a) shall apply to medical
assistance for care and treatment of an emergency medical condition
furnished on or after January 1, 1997.
8 USC 1370.

SEC. 563. REIMBURSEMENT OF STATES AND LOCALITIES FOR EMERGENCY AMBULANCE SERVICES.

Subject to the availability of appropriations, the Attorney General shall fully reimburse States and political subdivisions of States
for costs incurred by such a State or subdivision for emergency
ambulance services provided to any alien who—
(1) is injured while crossing a land or sea border of the
United States without inspection or at any time or place other
than as designated by the Attorney General; and
(2) is under the custody of the State or subdivision pursuant
to a transfer, request, or other action by a Federal authority.
8 USC 1183a
note.

SEC. 564. PILOT PROGRAMS TO REQUIRE BONDING.

(a) IN GENERAL.—
(1) The Attorney General of the United States shall establish a pilot program in 5 district offices of the Immigration
and Naturalization Service to require aliens to post a bond
in addition to the affidavit requirements under section 213A
of the Immigration and Nationality Act and the deeming
requirements under section 421 of the Personal Responsibility
and Work Opportunity Reconciliation Act of 1996 (8 U.S.C.
1631). Any pilot program established pursuant to this subsection shall require an alien to post a bond in an amount
sufficient to cover the cost of benefits described in section
213A(d)(2)(B) of the Immigration and Nationality Act (as
amended by section 551(a) of this division) for the alien and
the alien’s dependents and shall remain in effect until the
departure, naturalization, or death of the alien.
(2) Suit on any such bonds may be brought under the
terms and conditions set forth in section 213A of the Immigration and Nationality Act.
(b) REGULATIONS.—Not later than 180 days after the date of
the enactment of this Act, the Attorney General shall issue regulations for establishing the pilot programs, including—
(1) criteria and procedures for—
(A) certifying bonding companies for participation in
the program, and
(B) debarment of any such company that fails to pay
a bond, and
(2) criteria for setting the amount of the bond to assure
that the bond is in an amount that is not less than the cost

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110 STAT. 3009–684

of providing benefits under the programs described in subsection (a)(1) for the alien and the alien’s dependents for 6
months.
(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated such sums as may be necessary to carry out
this section.
(d) ANNUAL REPORTING REQUIREMENT.—Beginning 9 months
after the date of implementation of the pilot program, the Attorney
General shall submit annually to the Committees on the Judiciary
of the House of Representatives and the Senate a report on the
effectiveness of the program. The Attorney General shall submit
a final evaluation of the program not later than 1 year after termination.
(e) SUNSET.—The pilot program under this section shall terminate after 3 years of operation.
(f) BONDS IN ADDITION TO SPONSORSHIP AND DEEMING REQUIREMENTS.—Section 213 (8 U.S.C. 1183) is amended by inserting ‘‘(subject to the affidavit of support requirement and attribution of sponsor’s income and resources under section 213A)’’ after ‘‘in the discretion of the Attorney General’’.
SEC. 565. REPORTS.

8 USC 1371.

Not later than 180 days after the end of each fiscal year,
the Attorney General shall submit a report to the Inspector General
of the Department of Justice and the Committees on the Judiciary
of the House of Representatives and of the Senate describing the
following:
(1) PUBLIC CHARGE DEPORTATIONS.—The number of aliens
deported on public charge grounds under section 241(a)(5) of
the Immigration and Nationality Act during the previous fiscal
year.
(2) INDIGENT SPONSORS.—The number of determinations
made under section 421(e) of the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996 (as added by
section 552 of this division) during the previous fiscal year.
(3) REIMBURSEMENT ACTIONS.—The number of actions
brought, and the amount of each action, for reimbursement
under section 213A of the Immigration and Nationality Act
(including private collections) for the costs of providing public
benefits.

Subtitle E—Housing Assistance
SEC. 571. SHORT TITLE.

This subtitle may be cited as the ‘‘Use of Assisted Housing
by Aliens Act of 1996’’.
SEC. 572. PRORATING OF FINANCIAL ASSISTANCE.

Section 214(b) of the Housing and Community Development
Act of 1980 (42 U.S.C. 1436a(b)) is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(b)’’; and
(2) by adding at the end the following new paragraph:
‘‘(2) If the eligibility for financial assistance of at least one
member of a family has been affirmatively established under the
program of financial assistance and under this section, and the
ineligibility of one or more family members has not been affirmatively established under this section, any financial assistance made

Use of Assisted
Housing by
Aliens Act of
1996.
42 USC 1436a
note.

110 STAT. 3009–685

PUBLIC LAW 104–208—SEPT. 30, 1996

available to that family by the Secretary of Housing and Urban
Development shall be prorated, based on the number of individuals
in the family for whom eligibility has been affirmatively established
under the program of financial assistance and under this section,
as compared with the total number of individuals who are members
of the family.’’.
SEC. 573. ACTIONS IN CASES OF TERMINATION OF FINANCIAL ASSISTANCE.

Section 214(c)(1) of the Housing and Community Development
Act of 1980 (42 U.S.C. 1436a(c)(1)) is amended—
(1) in the matter preceding subparagraph (A), by striking
‘‘may, in its discretion,’’ and inserting ‘‘shall’’;
(2) in subparagraph (A), by adding at the end the following:
‘‘Financial assistance continued under this subparagraph for
a family may be provided only on a prorated basis, under
which the amount of financial assistance is based on the
percentage of the total number of members of the family that
are eligible for that assistance under the program of financial
assistance and under this section.’’; and
(3) in subparagraph (B)—
(A) by striking ‘‘3 years’’ and inserting ‘‘18-months’’;
(B) by inserting ‘‘(i)’’ after ‘‘(B)’’;
(C) by striking ‘‘Any deferral’’ and inserting the following:
‘‘(ii) Except as provided in clause (iii), any deferral’’;
and
(D) by adding at the end the following new clauses:
‘‘(iii) The time period described in clause (ii) shall
not apply in the case of a refugee under section 207 of
the Immigration and Nationality Act or an individual seeking asylum under section 208 of that Act.’’.
SEC. 574. VERIFICATION OF IMMIGRATION STATUS AND ELIGIBILITY
FOR FINANCIAL ASSISTANCE.

Section 214(d) of the Housing and Community Development
Act of 1980 (42 U.S.C. 1436a(d)) is amended—
(1) in the matter preceding paragraph (1), by inserting
‘‘or to be’’ after ‘‘being’’;
(2) in paragraph (1)(A), by adding at the end the following:
‘‘If the declaration states that the individual is not a citizen
or national of the United States and that the individual is
younger than 62 years of age, the declaration shall be verified
by the Immigration and Naturalization Service. If the declaration states that the individual is a citizen or national of the
United States, the Secretary of Housing and Urban Development, or the agency administering assistance covered by this
section, may request verification of the declaration by requiring
presentation of documentation that the Secretary considers
appropriate, including a United States passport, resident alien
card, alien registration card, social security card, or other documentation.’’;
(3) in paragraph (2)—
(A) in the matter preceding subparagraph (A), by striking ‘‘on the date of the enactment of the Housing and
Community Development Act of 1987’’ and inserting ‘‘on
the date of enactment of the Use of Assisted Housing

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110 STAT. 3009–686

by Aliens Act of 1996 or applying for financial assistance
on or after that date’’; and
(B) by adding at the end the following:
‘‘In the case of an individual applying for financial assistance on
or after the date of enactment of the Use of Assisted Housing
by Aliens Act of 1996, the Secretary may not provide any such
assistance for the benefit of that individual before documentation
is presented and verified under paragraph (3) or (4).’’;
(4) in paragraph (4)—
(A) in the matter preceding subparagraph (A), by striking ‘‘on the date of the enactment of the Housing and
Community Development Act of 1987’’ and inserting ‘‘on
the date of enactment of the Use of Assisted Housing
by Aliens Act of 1996 or applying for financial assistance
on or after that date’’;
(B) in subparagraph (A)—
(i) in clause (i)—
(I) by inserting ‘‘, not to exceed 30 days,’’ after
‘‘reasonable opportunity’’; and
(II) by striking ‘‘and’’ at the end; and
(ii) by striking clause (ii) and inserting the following:
‘‘(ii) in the case of any individual receiving assistance on the date of enactment of the Use of Assisted
Housing by Aliens Act of 1996, may not delay, deny,
reduce, or terminate the eligibility of that individual
for financial assistance on the basis of the immigration
status of that individual until the expiration of that
30-day period; and
‘‘(iii) in the case of any individual applying for
financial assistance on or after the date of enactment
of the Use of Assisted Housing by Aliens Act of 1996,
may not deny the application for such assistance on
the basis of the immigration status of that individual
until the expiration of that 30-day period; and’’; and
(C) in subparagraph (B), by striking clause (ii) and
inserting the following:
‘‘(ii) pending such verification or appeal, the Secretary may not—
‘‘(I) in the case of any individual receiving
assistance on the date of enactment of the Use
of Assisted Housing by Aliens Act of 1996, delay,
deny, reduce, or terminate the eligibility of that
individual for financial assistance on the basis of
the immigration status of that individual; and
‘‘(II) in the case of any individual applying
for financial assistance on or after the date of
enactment of the Use of Assisted Housing by Aliens
Act of 1996, deny the application for such assistance on the basis of the immigration status of
that individual; and’’;
(5) in paragraph (5), by striking ‘‘status—’’ and all that
follows through the end of the paragraph and inserting the
following: ‘‘status, the Secretary shall—
‘‘(A) deny the application of that individual for financial
assistance or terminate the eligibility of that individual
for financial assistance, as applicable;

110 STAT. 3009–687

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(B) provide that the individual may request a fair
hearing during the 30-day period beginning upon receipt
of the notice under subparagraph (C); and
‘‘(C) provide to the individual written notice of the
determination under this paragraph, the right to a fair
hearing process, and the time limitation for requesting
a hearing under subparagraph (C).’’; and
(6) by striking paragraph (6) and inserting the following:
‘‘(6) The Secretary shall terminate the eligibility for financial assistance of an individual and the members of the household of the individual, for a period of not less than 24 months,
upon determining that such individual has knowingly permitted
another individual who is not eligible for such assistance to
reside in the public or assisted housing unit of the individual.
This provision shall not apply to a family if the ineligibility
of the ineligible individual at issue was considered in calculating any proration of assistance provided for the family.’’.
SEC. 575. PROHIBITION OF SANCTIONS AGAINST ENTITIES MAKING
FINANCIAL ASSISTANCE ELIGIBILITY DETERMINATIONS.

Section 214(e) of the Housing and Community Development
Act of 1980 (42 U.S.C. 1436a(e)) is amended—
(1) in paragraph (2), by adding ‘‘or’’ at the end;
(2) in paragraph (3), by adding at the end the following:
‘‘the response from the Immigration and Naturalization Service
to the appeal of that individual.’’; and
(3) by striking paragraph (4).
SEC. 576. ELIGIBILITY FOR PUBLIC AND ASSISTED HOUSING.

Section 214 of the Housing and Community Development Act
of 1980 (42 U.S.C. 1436a) is amended by adding at the end the
following new subsection:
‘‘(h) VERIFICATION OF ELIGIBILITY.—
‘‘(1) IN GENERAL.—Except in the case of an election under
paragraph (2)(A), no individual or family applying for financial
assistance may receive such financial assistance prior to the
affirmative establishment and verification of eligibility of at
least the individual or one family member under this section
by the Secretary or other appropriate entity.
‘‘(2) RULES APPLICABLE TO PUBLIC HOUSING AGENCIES.—
A public housing agency (as that term is defined in section
3 of the United States Housing Act of 1937)—
‘‘(A) may elect not to comply with this section; and
‘‘(B) in complying with this section—
‘‘(i) may initiate procedures to affirmatively establish or verify the eligibility of an individual or family
under this section at any time at which the public
housing agency determines that such eligibility is in
question, regardless of whether or not that individual
or family is at or near the top of the waiting list
of the public housing agency;
‘‘(ii) may affirmatively establish or verify the eligibility of an individual or family under this section
in accordance with the procedures set forth in section
274A(b)(1) of the Immigration and Nationality Act;
and

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110 STAT. 3009–688

‘‘(iii) shall have access to any relevant information
contained in the SAVE system (or any successor thereto) that relates to any individual or family applying
for financial assistance.
‘‘(3) ELIGIBILITY OF FAMILIES.—For purposes of this subsection, with respect to a family, the term ‘eligibility’ means
the eligibility of each family member.’’.
SEC. 577. REGULATIONS.

(a) ISSUANCE.—Not later than the 60 days after the date of
enactment of this Act, the Secretary of Housing and Urban Development shall issue any regulations necessary to implement the amendments made by this part. Such regulations shall be issued in the
form of an interim final rule, which shall take effect upon issuance
and shall not be subject to the provisions of section 533 of title
5, United States Code, regarding notice or opportunity for comment.
(b) FAILURE TO ISSUE.—If the Secretary fails to issue the regulations required under subsection (a) before the date specified in
that subsection, the regulations relating to restrictions on assistance
to noncitizens, contained in the final rule issued by the Secretary
of Housing and Urban Development in RIN–2501–AA63 (Docket
No. R–95–1409; FR–2383–F–050), published in the Federal Register
on March 20, 1995 (Vol. 60, No. 53; pp. 14824–14861), shall not
apply after that date.

Subtitle F—General Provisions
SEC. 591. EFFECTIVE DATES.

Except as provided in this title, this title and the amendments
made by this title shall take effect on the date of the enactment
of this Act.
SEC. 592. NOT APPLICABLE TO FOREIGN ASSISTANCE.

This title does not apply to any Federal, State, or local governmental program, assistance, or benefits provided to an alien under
any program of foreign assistance as determined by the Secretary
of State in consultation with the Attorney General.
SEC. 593. NOTIFICATION.

(a) IN GENERAL.—Each agency of the Federal Government or
a State or political subdivision that administers a program affected
by the provisions of this title, shall, directly or through the States,
provide general notification to the public and to program recipients
of the changes regarding eligibility for any such program pursuant
to this title.
(b) FAILURE TO GIVE NOTICE.—Nothing in this section shall
be construed to require or authorize continuation of eligibility if
the notice under this section is not provided.
SEC. 594. DEFINITIONS.

Except as otherwise provided in this title, for purposes of this
title—
(1) the terms ‘‘alien’’, ‘‘Attorney General’’, ‘‘national’’, ‘‘naturalization’’, ‘‘State’’, and ‘‘United States’’ shall have the meaning
given such terms in section 101(a) of the Immigration and
Nationality Act; and

42 USC 1436a
note.

8 USC 1101 note.

110 STAT. 3009–689

PUBLIC LAW 104–208—SEPT. 30, 1996

(2) the term ‘‘child’’ shall have the meaning given such
term in section 101(c) of the Immigration and Nationality Act.

TITLE VI—MISCELLANEOUS
PROVISIONS
Subtitle A—Refugees, Parole, and Asylum
SEC. 601. PERSECUTION FOR RESISTANCE TO COERCIVE POPULATION
CONTROL METHODS.

8 USC 1101 note.

(a) DEFINITION OF REFUGEE.—
(1) Section 101(a)(42) (8 U.S.C. 1101(a)(42)) is amended
by adding at the end the following: ‘‘For purposes of determinations under this Act, a person who has been forced to abort
a pregnancy or to undergo involuntary sterilization, or who
has been persecuted for failure or refusal to undergo such
a procedure or for other resistance to a coercive population
control program, shall be deemed to have been persecuted
on account of political opinion, and a person who has a well
founded fear that he or she will be forced to undergo such
a procedure or subject to persecution for such failure, refusal,
or resistance shall be deemed to have a well founded fear
of persecution on account of political opinion.’’.
(2) Not later than 90 days after the end of each fiscal
year, the Attorney General shall submit a report to the Committee on the Judiciary of the House of Representatives and the
Committee on the Judiciary of the Senate describing the number and countries of origin of aliens granted refugee status
or asylum under determinations pursuant to the amendment
made by paragraph (1). Each such report shall also contain
projections regarding the number and countries of origin of
aliens that are likely to be granted refugee status or asylum
for the subsequent 2 fiscal years.
(b) NUMERICAL LIMITATION.—Section 207(a) (8 U.S.C. 1157(a))
is amended by adding at the end the following new paragraph:
‘‘(5) For any fiscal year, not more than a total of 1,000 refugees
may be admitted under this subsection or granted asylum under
section 208 pursuant to a determination under the third sentence
of section 101(a)(42) (relating to persecution for resistance to coercive population control methods).’’.
SEC. 602. LIMITATION ON USE OF PAROLE

8 USC 1182 note.

(a) PAROLE AUTHORITY.—Section 212(d)(5)(A) (8 U.S.C.
1182(d)(5)) is amended by striking ‘‘for emergent reasons or for
reasons deemed strictly in the public interest’’ and inserting ‘‘only
on a case-by-case basis for urgent humanitarian reasons or significant public benefit’’.
(b) REPORT TO CONGRESS.—Not later than 90 days after the
end of each fiscal year, the Attorney General shall submit a report
to the Committee on the Judiciary of the House of Representatives
and the Committee on the Judiciary of the Senate describing the
number and categories of aliens paroled into the United States
under section 212(d)(5) of the Immigration and Nationality Act.
Each such report shall provide the total number of aliens paroled
into and residing in the United States and shall contain information

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–690

and data for each country of origin concerning the number and
categories of aliens paroled, the duration of parole, the current
status of aliens paroled, and the number and categories of aliens
returned to the custody from which they were paroled during the
preceding fiscal year.
SEC. 603. TREATMENT OF LONG-TERM PAROLEES IN APPLYING
WORLDWIDE NUMERICAL LIMITATIONS.

Section 201(c) (8 U.S.C. 1151(c)) is amended—
(1) by amending paragraph (1)(A)(ii) to read as follows:
‘‘(ii) the sum of the number computed under paragraph
(2) and the number computed under paragraph (4), plus’’; and
(2) by adding at the end the following new paragraphs:
‘‘(4) The number computed under this paragraph for a fiscal
year (beginning with fiscal year 1999) is the number of aliens
who were paroled into the United States under section 212(d)(5)
in the second preceding fiscal year—
‘‘(A) who did not depart from the United States (without
advance parole) within 365 days; and
‘‘(B) who (i) did not acquire the status of aliens lawfully
admitted to the United States for permanent residence in the
two preceding fiscal years, or (ii) acquired such status in such
years under a provision of law (other than section 201(b))
which exempts such adjustment from the numerical limitation
on the worldwide level of immigration under this section.
‘‘(5) If any alien described in paragraph (4) (other than an
alien described in paragraph (4)(B)(ii)) is subsequently admitted
as an alien lawfully admitted for permanent residence, such alien
shall not again be considered for purposes of paragraph (1).’’.
SEC. 604. ASYLUM REFORM.

(a) ASYLUM REFORM.—Section 208 (8 U.S.C. 1158) is amended
to read as follows:
‘‘ASYLUM
‘‘SEC. 208. (a) AUTHORITY TO APPLY FOR ASYLUM.—
‘‘(1) IN GENERAL.—Any alien who is physically present in
the United States or who arrives in the United States (whether
or not at a designated port of arrival and including an alien
who is brought to the United States after having been interdicted in international or United States waters), irrespective
of such alien’s status, may apply for asylum in accordance
with this section or, where applicable, section 235(b).
‘‘(2) EXCEPTIONS.—
‘‘(A) SAFE THIRD COUNTRY.—Paragraph (1) shall not
apply to an alien if the Attorney General determines that
the alien may be removed, pursuant to a bilateral or multilateral agreement, to a country (other than the country
of the alien’s nationality or, in the case of an alien having
no nationality, the country of the alien’s last habitual residence) in which the alien’s life or freedom would not be
threatened on account of race, religion, nationality, membership in a particular social group, or political opinion,
and where the alien would have access to a full and fair
procedure for determining a claim to asylum or equivalent
temporary protection, unless the Attorney General finds

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PUBLIC LAW 104–208—SEPT. 30, 1996

that it is in the public interest for the alien to receive
asylum in the United States.
‘‘(B) TIME LIMIT.—Subject to subparagraph (D), paragraph (1) shall not apply to an alien unless the alien
demonstrates by clear and convincing evidence that the
application has been filed within 1 year after the date
of the alien’s arrival in the United States.
‘‘(C) PREVIOUS ASYLUM APPLICATIONS.—Subject to
subparagraph (D), paragraph (1) shall not apply to an
alien if the alien has previously applied for asylum and
had such application denied.
‘‘(D) CHANGED CIRCUMSTANCES.—An application for
asylum of an alien may be considered, notwithstanding
subparagraphs (B) and (C), if the alien demonstrates to
the satisfaction of the Attorney General either the existence
of changed circumstances which materially affect the
applicant’s eligibility for asylum or extraordinary circumstances relating to the delay in filing an application
within the period specified in subparagraph (B).
‘‘(3) LIMITATION ON JUDICIAL REVIEW.—No court shall have
jurisdiction to review any determination of the Attorney General under paragraph (2).
‘‘(b) CONDITIONS FOR GRANTING ASYLUM.—
‘‘(1) IN GENERAL.—The Attorney General may grant asylum
to an alien who has applied for asylum in accordance with
the requirements and procedures established by the Attorney
General under this section if the Attorney General determines
that such alien is a refugee within the meaning of section
101(a)(42)(A).
‘‘(2) EXCEPTIONS.—
‘‘(A) IN GENERAL.—Paragraph (1) shall not apply to
an alien if the Attorney General determines that—
‘‘(i) the alien ordered, incited, assisted, or otherwise
participated in the persecution of any person on
account of race, religion, nationality, membership in
a particular social group, or political opinion;
‘‘(ii) the alien, having been convicted by a final
judgment of a particularly serious crime, constitutes
a danger to the community of the United States;
‘‘(iii) there are serious reasons for believing that
the alien has committed a serious nonpolitical crime
outside the United States prior to the arrival of the
alien in the United States;
‘‘(iv) there are reasonable grounds for regarding
the alien as a danger to the security of the United
States;
‘‘(v) the alien is inadmissible under subclause (I),
(II), (III), or (IV) of section 212(a)(3)(B)(i) or removable
under section 237(a)(4)(B) (relating to terrorist activity), unless, in the case only of an alien inadmissible
under subclause (IV) of section 212(a)(3)(B)(i), the
Attorney General determines, in the Attorney General’s
discretion, that there are not reasonable grounds for
regarding the alien as a danger to the security of
the United States; or
‘‘(vi) the alien was firmly resettled in another country prior to arriving in the United States.

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110 STAT. 3009–692

‘‘(B) SPECIAL RULES.—
‘‘(i) CONVICTION OF AGGRAVATED FELONY.—For purposes of clause (ii) of subparagraph (A), an alien who
has been convicted of an aggravated felony shall be
considered to have been convicted of a particularly
serious crime.
‘‘(ii) OFFENSES.—The Attorney General may designate by regulation offenses that will be considered
to be a crime described in clause (ii) or (iii) of subparagraph (A).
‘‘(C) ADDITIONAL LIMITATIONS.—The Attorney General
may by regulation establish additional limitations and
conditions, consistent with this section, under which an
alien shall be ineligible for asylum under paragraph (1).
‘‘(D) NO JUDICIAL REVIEW.—There shall be no judicial
review of a determination of the Attorney General under
subparagraph (A)(v).
‘‘(3) TREATMENT OF SPOUSE AND CHILDREN.—A spouse or
child (as defined in section 101(b)(1)(A), (B), (C), (D), or (E))
of an alien who is granted asylum under this subsection may,
if not otherwise eligible for asylum under this section, be
granted the same status as the alien if accompanying, or following to join, such alien.
‘‘(c) ASYLUM STATUS.—
‘‘(1) IN GENERAL.—In the case of an alien granted asylum
under subsection (b), the Attorney General—
‘‘(A) shall not remove or return the alien to the alien’s
country of nationality or, in the case of a person having
no nationality, the country of the alien’s last habitual residence;
‘‘(B) shall authorize the alien to engage in employment
in the United States and provide the alien with appropriate
endorsement of that authorization; and
‘‘(C) may allow the alien to travel abroad with the
prior consent of the Attorney General.
‘‘(2) TERMINATION OF ASYLUM.—Asylum granted under subsection (b) does not convey a right to remain permanently
in the United States, and may be terminated if the Attorney
General determines that—
‘‘(A) the alien no longer meets the conditions described
in subsection (b)(1) owing to a fundamental change in
circumstances;
‘‘(B) the alien meets a condition described in subsection
(b)(2);
‘‘(C) the alien may be removed, pursuant to a bilateral
or multilateral agreement, to a country (other than the
country of the alien’s nationality or, in the case of an
alien having no nationality, the country of the alien’s last
habitual residence) in which the alien’s life or freedom
would not be threatened on account of race, religion,
nationality, membership in a particular social group, or
political opinion, and where the alien is eligible to receive
asylum or equivalent temporary protection;
‘‘(D) the alien has voluntarily availed himself or herself
of the protection of the alien’s country of nationality or,
in the case of an alien having no nationality, the alien’s
country of last habitual residence, by returning to such

110 STAT. 3009–693

PUBLIC LAW 104–208—SEPT. 30, 1996

country with permanent resident status or the reasonable
possibility of obtaining such status with the same rights
and obligations pertaining to other permanent residents
of that country; or
‘‘(E) the alien has acquired a new nationality and enjoys
the protection of the country of his or her new nationality.
‘‘(3) REMOVAL WHEN ASYLUM IS TERMINATED.—An alien
described in paragraph (2) is subject to any applicable grounds
of inadmissibility or deportability under section 212(a) and
237(a), and the alien’s removal or return shall be directed
by the Attorney General in accordance with sections 240 and
241.
‘‘(d) ASYLUM PROCEDURE.—
‘‘(1) APPLICATIONS.—The Attorney General shall establish a
procedure for the consideration of asylum applications filed
under subsection (a). The Attorney General may require
applicants to submit fingerprints and a photograph at such
time and in such manner to be determined by regulation by
the Attorney General.
‘‘(2) EMPLOYMENT.—An applicant for asylum is not entitled
to employment authorization, but such authorization may be
provided under regulation by the Attorney General. An
applicant who is not otherwise eligible for employment
authorization shall not be granted such authorization prior
to 180 days after the date of filing of the application for asylum.
‘‘(3) FEES.—The Attorney General may impose fees for the
consideration of an application for asylum, for employment
authorization under this section, and for adjustment of status
under section 209(b). Such fees shall not exceed the Attorney
General’s costs in adjudicating the applications. The Attorney
General may provide for the assessment and payment of such
fees over a period of time or by installments. Nothing in this
paragraph shall be construed to require the Attorney General
to charge fees for adjudication services provided to asylum
applicants, or to limit the authority of the Attorney General
to set adjudication and naturalization fees in accordance with
section 286(m).
‘‘(4) NOTICE OF PRIVILEGE OF COUNSEL AND CONSEQUENCES
OF FRIVOLOUS APPLICATION.—At the time of filing an application
for asylum, the Attorney General shall—
‘‘(A) advise the alien of the privilege of being represented
by counsel and of the consequences, under paragraph (6),
of knowingly filing a frivolous application for asylum; and
‘‘(B) provide the alien a list of persons (updated not
less often than quarterly) who have indicated their availability to represent aliens in asylum proceedings on a pro
bono basis.
‘‘(5) CONSIDERATION OF ASYLUM APPLICATIONS.—
‘‘(A) PROCEDURES.—The procedure established under
paragraph (1) shall provide that—
‘‘(i) asylum cannot be granted until the identity
of the applicant has been checked against all appropriate records or databases maintained by the Attorney
General and by the Secretary of State, including the
Automated Visa Lookout System, to determine any
grounds on which the alien may be inadmissible to

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110 STAT. 3009–694

or deportable from the United States, or ineligible to
apply for or be granted asylum;
‘‘(ii) in the absence of exceptional circumstances, the
initial interview or hearing on the asylum application
shall commence not later than 45 days after the date
an application is filed;
‘‘(iii) in the absence of exceptional circumstances,
final administrative adjudication of the asylum application, not including administrative appeal, shall be completed within 180 days after the date an application
is filed;
‘‘(iv) any administrative appeal shall be filed within
30 days of a decision granting or denying asylum,
or within 30 days of the completion of removal proceedings before an immigration judge under section 240,
whichever is later; and
‘‘(v) in the case of an applicant for asylum who
fails without prior authorization or in the absence of
exceptional circumstances to appear for an interview
or hearing, including a hearing under section 240, the
application may be dismissed or the applicant may
be otherwise sanctioned for such failure.
‘‘(B) ADDITIONAL REGULATORY CONDITIONS.—The Attorney General may provide by regulation for any other conditions or limitations on the consideration of an application
for asylum not inconsistent with this Act.
‘‘(6) FRIVOLOUS APPLICATIONS.—If the Attorney General determines that an alien has knowingly made a frivolous application
for asylum and the alien has received the notice under paragraph (4)(A), the alien shall be permanently ineligible for any
benefits under this Act, effective as of the date of a final
determination on such application.
‘‘(7) NO PRIVATE RIGHT OF ACTION.—Nothing in this subsection
shall be construed to create any substantive or procedural
right or benefit that is legally enforceable by any party against
the United States or its agencies or officers or any other person.’’.
(b) CONFORMING AND CLERICAL AMENDMENTS.—
(1) The item in the table of contents relating to section
208 is amended to read as follows:
‘‘Sec. 208. Asylum.’’.

(2) Section 104(d)(1)(A) of the Immigration Act of 1990 (Public
Law 101–649) is amended by striking ‘‘208(b)’’ and inserting
‘‘208’’.
(c) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply to applications for asylum filed on or after the first
day of the first month beginning more than 180 days after the
date of the enactment of this Act.
SEC. 605. INCREASE IN ASYLUM OFFICERS.

Subject to the availability of appropriations, the Attorney General shall provide for an increase in the number of asylum officers
to at least 600 asylum officers by fiscal year 1997.

8 USC 1159 note.
8 USC 1158 note.

110 STAT. 3009–695
8 USC 1255 note.

PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 606. CONDITIONAL REPEAL OF CUBAN ADJUSTMENT ACT.

(a) IN GENERAL.—Public Law 89–732 is repealed effective only
upon a determination by the President under section 203(c)(3) of
the Cuban Liberty and Democratic Solidarity (LIBERTAD) Act of
1996 (Public Law 104–114) that a democratically elected government in Cuba is in power.
(b) LIMITATION.—Subsection (a) shall not apply to aliens for
whom an application for adjustment of status is pending on such
effective date.

Subtitle B—Miscellaneous Amendments to
the Immigration and Nationality Act
SEC. 621. ALIEN WITNESS COOPERATION.

Section 214(j)(1) (8 U.S.C. 1184(j)(1)) (as added by section
130003(b)(2) of the Violent Crime Control and Law Enforcement
Act of 1994 (Public Law 103–322; 108 Stat. 2025)) (relating to
numerical limitations on the number of aliens who may be provided
a visa as nonimmigrants under section 101(a)(15)(S) of the Immigration and Nationality Act) is amended—
(1) by striking ‘‘100.’’ and inserting ‘‘200.’’; and
(2) by striking ‘‘25.’’ and inserting ‘‘50.’’.
SEC. 622. WAIVER OF FOREIGN COUNTRY RESIDENCE REQUIREMENT
WITH RESPECT TO INTERNATIONAL MEDICAL GRADUATES.

(a) EXTENSION OF WAIVER PROGRAM.—Section 220(c) of the
Immigration and Nationality Technical Corrections Act of 1994
(8 U.S.C. 1182 note) is amended by striking ‘‘1996.’’ and inserting
‘‘2002.’’.
(b) CONDITIONS ON FEDERALLY REQUESTED WAIVERS.—Section
212(e) (8 U.S.C. 1182(e)) is amended by inserting after ‘‘except
that in the case of a waiver requested by a State Department
of Public Health, or its equivalent’’ the following: ‘‘, or in the
case of a waiver requested by an interested United States Government agency on behalf of an alien described in clause (iii),’’.
(c) RESTRICTIONS ON FEDERALLY REQUESTED WAIVERS.—Section
214(k) (8 U.S.C. 1184(k)) (as added by section 220(b) of the Immigration and Nationality Technical Corrections Act of 1994 (Public Law
103–416; 108 Stat. 4319)) is amended to read as follows:
‘‘(k)(1) In the case of a request by an interested State agency,
or by an interested Federal agency, for a waiver of the 2-year
foreign residence requirement under section 212(e) on behalf of
an alien described in clause (iii) of such section, the Attorney
General shall not grant such waiver unless—
‘‘(A) in the case of an alien who is otherwise contractually
obligated to return to a foreign country, the government of
such country furnishes the Director of the United States
Information Agency with a statement in writing that it has
no objection to such waiver;
‘‘(B) in the case of a request by an interested State agency,
the grant of such waiver would not cause the number of waivers
allotted for that State for that fiscal year to exceed 20;
‘‘(C) in the case of a request by an interested Federal agency
or by an interested State agency—

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110 STAT. 3009–696

‘‘(i) the alien demonstrates a bona fide offer of full-time
employment at a health facility or health care organization,
which employment has been determined by the Attorney
General to be in the public interest; and
‘‘(ii) the alien agrees to begin employment with the health
facility or health care organization within 90 days of receiving such waiver, and agrees to continue to work for a
total of not less than 3 years (unless the Attorney General
determines that extenuating circumstances exist, such as
closure of the facility or hardship to the alien, which would
justify a lesser period of employment at such health facility
or health care organization, in which case the alien must
demonstrate another bona fide offer of employment at a
health facility or health care organization for the remainder
of such 3-year period); and
‘‘(D) in the case of a request by an interested Federal agency
(other than a request by an interested Federal agency to employ
the alien full-time in medical research or training) or by an
interested State agency, the alien agrees to practice medicine
in accordance with paragraph (2) for a total of not less than
3 years only in the geographic area or areas which are designated by the Secretary of Health and Human Services as
having a shortage of health care professionals.
‘‘(2)(A) Notwithstanding section 248(2), the Attorney General
may change the status of an alien who qualifies under this
subsection and section 212(e) to that of an alien described
in section 101(a)(15)(H)(i)(b).
‘‘(B) No person who has obtained a change of status under
subparagraph (A) and who has failed to fulfill the terms of
the contract with the health facility or health care organization
named in the waiver application shall be eligible to apply
for an immigrant visa, for permanent residence, or for any
other change of nonimmigrant status, until it is established
that such person has resided and been physically present in
the country of his nationality or his last residence for an aggregate of at least 2 years following departure from the United
States.
‘‘(3) Notwithstanding any other provision of this subsection,
the 2-year foreign residence requirement under section 212(e)
shall apply with respect to an alien described in clause (iii)
of such section, who has not otherwise been accorded status
under section 101(a)(27)(H), if—
‘‘(A) at any time the alien ceases to comply with any
agreement entered into under subparagraph (C) or (D)
of paragraph (1); or
‘‘(B) the alien’s employment ceases to benefit the public
interest at any time during the 3-year period described
in paragraph (1)(C).’’.
SEC. 623. USE OF LEGALIZATION AND SPECIAL AGRICULTURAL
WORKER INFORMATION.

(a) CONFIDENTIALITY OF INFORMATION.—Section 245A(c)(5) (8
U.S.C. 1255a(c)(5)) is amended to read as follows:
‘‘(5) CONFIDENTIALITY OF INFORMATION.—
‘‘(A) IN GENERAL.—Except as provided in this paragraph, neither the Attorney General, nor any other official

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or employee of the Department of Justice, or bureau or
agency thereof, may—
‘‘(i) use the information furnished by the applicant
pursuant to an application filed under this section
for any purpose other than to make a determination
on the application, for enforcement of paragraph (6),
or for the preparation of reports to Congress under
section 404 of the Immigration Reform and Control
Act of 1986;
‘‘(ii) make any publication whereby the information
furnished by any particular applicant can be identified;
or
‘‘(iii) permit anyone other than the sworn officers
and employees of the Department or bureau or agency
or, with respect to applications filed with a designated
entity, that designated entity, to examine individual
applications.
‘‘(B) REQUIRED DISCLOSURES.—The Attorney General
shall provide the information furnished under this section,
and any other information derived from such furnished
information, to a duly recognized law enforcement entity
in connection with a criminal investigation or prosecution,
when such information is requested in writing by such
entity, or to an official coroner for purposes of affirmatively
identifying a deceased individual (whether or not such
individual is deceased as a result of a crime).
‘‘(C) AUTHORIZED DISCLOSURES.—The Attorney General
may provide, in the Attorney General’s discretion, for the
furnishing of information furnished under this section in
the same manner and circumstances as census information
may be disclosed by the Secretary of Commerce under
section 8 of title 13, United States Code.
‘‘(D) CONSTRUCTION.—
‘‘(i) IN GENERAL.—Nothing in this paragraph shall
be construed to limit the use, or release, for immigration enforcement purposes or law enforcement purposes
of information contained in files or records of the Service pertaining to an application filed under this section,
other than information furnished by an applicant
pursuant to the application, or any other information
derived from the application, that is not available from
any other source.
‘‘(ii) CRIMINAL CONVICTIONS.—Information concerning whether the applicant has at any time been convicted of a crime may be used or released for immigration enforcement or law enforcement purposes.
‘‘(E) CRIME.—Whoever knowingly uses, publishes, or
permits information to be examined in violation of this
paragraph shall be fined not more than $10,000.’’.
(b) SPECIAL AGRICULTURAL WORKERS.—Section 210(b)(6) (8
U.S.C. 1160(b)(6)) is amended to read as follows:
‘‘(6) CONFIDENTIALITY OF INFORMATION.—
‘‘(A) IN GENERAL.—Except as provided in this paragraph, neither the Attorney General, nor any other official
or employee of the Department of Justice, or bureau or
agency thereof, may—

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110 STAT. 3009–698

‘‘(i) use the information furnished by the applicant
pursuant to an application filed under this section
for any purpose other than to make a determination
on the application, including a determination under
subsection (a)(3)(B), or for enforcement of paragraph
(7);
‘‘(ii) make any publication whereby the information
furnished by any particular individual can be identified; or
‘‘(iii) permit anyone other than the sworn officers
and employees of the Department or bureau or agency
or, with respect to applications filed with a designated
entity, that designated entity, to examine individual
applications.
‘‘(B) REQUIRED DISCLOSURES.—The Attorney General
shall provide information furnished under this section, and
any other information derived from such furnished information, to a duly recognized law enforcement entity in connection with a criminal investigation or prosecution, when
such information is requested in writing by such entity,
or to an official coroner for purposes of affirmatively identifying a deceased individual (whether or not such individual
is deceased as a result of a crime).
‘‘(C) CONSTRUCTION.—
‘‘(i) IN GENERAL.—Nothing in this paragraph shall
be construed to limit the use, or release, for immigration enforcement purposes or law enforcement purposes
of information contained in files or records of the Service pertaining to an application filed under this section,
other than information furnished by an applicant
pursuant to the application, or any other information
derived from the application, that is not available from
any other source.
‘‘(ii) CRIMINAL CONVICTIONS.—Information concerning whether the applicant has at any time been convicted of a crime may be used or released for immigration enforcement or law enforcement purposes.
‘‘(D) CRIME.—Whoever knowingly uses, publishes, or
permits information to be examined in violation of this
paragraph shall be fined not more than $10,000.’’.
SEC. 624. CONTINUED VALIDITY OF LABOR CERTIFICATIONS AND
CLASSIFICATION PETITIONS FOR PROFESSIONAL ATHLETES.

(a) LABOR CERTIFICATION.—Section 212(a)(5)(A) (8 U.S.C.
1182(a)(5)(A)) is amended by adding at the end the following:
‘‘(iii) PROFESSIONAL ATHLETES.—
‘‘(I) IN GENERAL.—A certification made under
clause (i) with respect to a professional athlete
shall remain valid with respect to the athlete after
the athlete changes employer, if the new employer
is a team in the same sport as the team which
employed the athlete when the athlete first applied
for the certification.
‘‘(II) DEFINITION.—For purposes of subclause
(I), the term ‘professional athlete’ means an
individual who is employed as an athlete by—

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PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(aa) a team that is a member of an
association of 6 or more professional sports
teams whose total combined revenues exceed
$10,000,000 per year, if the association governs the conduct of its members and regulates
the contests and exhibitions in which its member teams regularly engage; or
‘‘(bb) any minor league team that is affiliated with such an association.’’.
(b) CLASSIFICATION PETITIONS.—Section 204 (8 U.S.C. 1154)
is amended by adding at the end the following:
‘‘(i) PROFESSIONAL ATHLETES.—
‘‘(1) IN GENERAL.—A petition under subsection (a)(4)(D)
for classification of a professional athlete shall remain valid
for the athlete after the athlete changes employers, if the
new employer is a team in the same sport as the team which
was the employer who filed the petition.
‘‘(2) DEFINITION.—For purposes of paragraph (1), the term
‘professional athlete’ means an individual who is employed
as an athlete by—
‘‘(A) a team that is a member of an association of
6 or more professional sports teams whose total combined
revenues exceed $10,000,000 per year, if the association
governs the conduct of its members and regulates the contests and exhibitions in which its member teams regularly
engage; or
‘‘(B) any minor league team that is affiliated with
such an association.’’.
SEC. 625. FOREIGN STUDENTS.

(a) LIMITATIONS.—
(1) IN GENERAL.—Section 214 (8 U.S.C. 1184) is amended
by adding at the end the following new subsection:
‘‘(l)(1) An alien may not be accorded status as a nonimmigrant
under section 101(a)(15)(F)(i) in order to pursue a course of study—
‘‘(A) at a public elementary school or in a publicly funded
adult education program; or
‘‘(B) at a public secondary school unless—
‘‘(i) the aggregate period of such status at such a school
does not exceed 12 months with respect to any alien, and
(ii) the alien demonstrates that the alien has reimbursed
the local educational agency that administers the school
for the full, unsubsidized per capita cost of providing education at such school for the period of the alien’s attendance.
‘‘(2) An alien who obtains the status of a nonimmigrant under
section 101(a)(15)(F)(i) in order to pursue a course of study at
a private elementary or secondary school or in a language training
program that is not publicly funded shall be considered to have
violated such status, and the alien’s visa under section 101(a)(15)(F)
shall be void, if the alien terminates or abandons such course
of study at such a school and undertakes a course of study at
a public elementary school, in a publicly funded adult education
program, in a publicly funded adult education language training
program, or at a public secondary school (unless the requirements
of paragraph (1)(B) are met).’’.

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110 STAT. 3009–700

(2) CONFORMING AMENDMENT.—Section 101(a)(15)(F) (8
U.S.C. 1101(a)(15)(F)) is amended by inserting ‘‘consistent with
section 214(l)’’ after ‘‘such a course of study’’.
(b) REFERENCE TO NEW GROUND OF EXCLUSION FOR STUDENT
VISA ABUSERS.—For addition of ground of inadmissibility for certain
nonimmigrant student abusers, see section 347 of this division.
(c) EFFECTIVE DATE.—The amendments made by subsection
(a) shall apply to individuals who obtain the status of a nonimmigrant under section 101(a)(15)(F) of the Immigration and
Nationality Act after the end of the 60-day period beginning on
the date of the enactment of this Act, including aliens whose status
as such a nonimmigrant is extended after the end of such period.

8 USC 1101 note.

SEC. 626. SERVICES TO FAMILY MEMBERS OF CERTAIN OFFICERS AND
AGENTS KILLED IN THE LINE OF DUTY.

(a) IN GENERAL.—Title II, as amended by section 205(a) of
this division, is amended by adding at the end the following new
section:
‘‘TRANSPORTATION

OF REMAINS OF IMMIGRATION OFFICERS AND
BORDER PATROL AGENTS KILLED IN THE LINE OF DUTY

‘‘SEC. 295. (a) IN GENERAL.—To the extent provided in appropriation Acts, when an immigration officer or border patrol agent
is killed in the line of duty, the Attorney General may pay from
appropriations available for the activity in which the officer or
agent was engaged—
‘‘(1) the actual and necessary expenses of transportation
of the remains of the officer or agent to a place of burial
located in any State, American Samoa, the Commonwealth
of the Northern Mariana Islands, the Republic of the Marshall
Islands, the Federated States of Micronesia, or the Republic
of Palau;
‘‘(2) travel expenses, including per diem in lieu of subsistence, of the decedent’s spouse and minor children to and from
such site at rates not greater than those established for official
government travel under subchapter I of chapter 57 of title
5, United States Code; and
‘‘(3) any other memorial service authorized by the Attorney
General.
‘‘(b) PREPAYMENT.—The Attorney General may prepay any
expense authorized to be paid under this section.’’.
(b) CLERICAL AMENDMENT.—The table of contents, as amended
by section 205(b) of this division, is amended by inserting after
the item relating to section 294 the following new item:
‘‘Sec. 295.

Transportation of remains of immigration officers and border
patrol agents killed in the line of duty.’’.

Subtitle C—Provisions Relating to Visa
Processing and Consular Efficiency
SEC. 631. VALIDITY OF PERIOD OF VISAS.

(a) EXTENSION OF VALIDITY OF IMMIGRANT VISAS TO 6
MONTHS.—Section 221(c) (8 U.S.C. 1201(c)) is amended by striking
‘‘four months’’ and inserting ‘‘six months’’.

8 USC 1363b.

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PUBLIC LAW 104–208—SEPT. 30, 1996

(b) AUTHORIZING APPLICATION OF RECIPROCITY RULE FOR NONIMMIGRANT VISA IN CASE OF REFUGEES AND PERMANENT RESIDENTS.—Such section is further amended by inserting before the
period at the end of the third sentence the following: ‘‘; except
that in the case of aliens who are nationals of a foreign country
and who either are granted refugee status and firmly resettled
in another foreign country or are granted permanent residence
and residing in another foreign country, the Secretary of State
may prescribe the period of validity of such a visa based upon
the treatment granted by that other foreign country to alien refugees and permanent residents, respectively, in the United States’’.
SEC.

8 USC 1202 note.

632.

ELIMINATION
OVERSTAYS.

OF

CONSULATE

SHOPPING

FOR

VISA

(a) IN GENERAL.—Section 222 (8 U.S.C. 1202) is amended by
adding at the end the following:
‘‘(g)(1) In the case of an alien who has been admitted on
the basis of a nonimmigrant visa and remained in the United
States beyond the period of stay authorized by the Attorney General,
such visa shall be void beginning after the conclusion of such
period of stay.
‘‘(2) An alien described in paragraph (1) shall be ineligible
to be readmitted to the United States as a nonimmigrant, except—
‘‘(A) on the basis of a visa (other than the visa described
in paragraph (1)) issued in a consular office located in the
country of the alien’s nationality (or, if there is no office in
such country, in such other consular office as the Secretary
of State shall specify); or
‘‘(B) where extraordinary circumstances are found by the
Secretary of State to exist.’’.
(b) APPLICABILITY.—
(1) VISAS.—Section 222(g)(1) of the Immigration and
Nationality Act, as added by subsection (a), shall apply to
a visa issued before, on, or after the date of the enactment
of this Act.
(2) ALIENS SEEKING READMISSION.—Section 222(g)(2) of the
Immigration and Nationality Act, as added by subsection (a),
shall apply to any alien applying for readmission to the United
States after the date of the enactment of this Act, except
an alien applying for readmission on the basis on a visa that—
(A) was issued before such date; and
(B) is not void through the application of section
222(g)(1) of the Immigration and Nationality Act, as added
by subsection (a).
SEC. 633. AUTHORITY TO DETERMINE VISA PROCESSING PROCEDURES.

Section 202(a)(1) (8 U.S.C. 1152(a)(1)) is amended—
(1) by inserting ‘‘(A)’’ after ‘‘NONDISCRIMINATION.—’’; and
(2) by adding at the end the following:
‘‘(B) Nothing in this paragraph shall be construed to limit
the authority of the Secretary of State to determine the procedures for the processing of immigrant visa applications or the
locations where such applications will be processed.’’.
SEC. 634. CHANGES REGARDING VISA APPLICATION PROCESS.

(a) NONIMMIGRANT APPLICATIONS.—Section 222(c) (8 U.S.C.
1202(c)) is amended—

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110 STAT. 3009–702

(1) by striking ‘‘personal description’’ through ‘‘marks of
identification);’’;
(2) by striking ‘‘applicant’’ and inserting ‘‘applicant, the
determination of his eligibility for a nonimmigrant visa,’’; and
(3) by adding at the end the following: ‘‘At the discretion
of the Secretary of State, application forms for the various
classes of nonimmigrant admissions described in section
101(a)(15) may vary according to the class of visa being
requested.’’.
(b) DISPOSITION OF APPLICATIONS.—Section 222(e) (8 U.S.C.
1202(e)) is amended—
(1) in the first sentence, by striking ‘‘required by this
section’’ and inserting ‘‘for an immigrant visa’’; and
(2) in the fourth sentence—
(A) by striking ‘‘stamp’’ and inserting ‘‘stamp, or other
(B) by striking ‘‘by the consular officer’’.
SEC. 635. VISA WAIVER PROGRAM.

(a) ELIMINATION OF JOINT ACTION REQUIREMENT.—Section 217
(8 U.S.C. 1187) is amended—
(1) in subsection (a), by striking ‘‘Attorney General and
the Secretary of State, acting jointly’’ and inserting ‘‘Attorney
General, in consultation with the Secretary of State’’;
(2) in subsection (c)(1), by striking ‘‘Attorney General and
the Secretary of State acting jointly’’ and inserting ‘‘Attorney
General, in consultation with the Secretary of State,’’; and
(3) in subsection (d), by striking ‘‘Attorney General and
the Secretary of State, acting jointly,’’ and inserting ‘‘Attorney
General, in consultation with the Secretary of State,’’.
(b) EXTENSION OF PROGRAM.—Section 217(f) (8 U.S.C. 1187(f))
is amended by striking ‘‘1996’’ and inserting ‘‘1997.’’.
(c) DURATION AND TERMINATION OF DESIGNATION OF PILOT PROGRAM COUNTRIES.—
(1) IN GENERAL.—Section 217(g) (8 U.S.C. 1187(g)) is
amended to read as follows:
‘‘(g) DURATION AND TERMINATION OF DESIGNATION.—
‘‘(1) IN GENERAL.—
‘‘(A) DETERMINATION AND NOTIFICATION OF DISQUALIFICATION RATE.—Upon determination by the Attorney General that a pilot program country’s disqualification rate
is 2 percent or more, the Attorney General shall notify
the Secretary of State.
‘‘(B) PROBATIONARY STATUS.—If the program country’s
disqualification rate is greater than 2 percent but less
than 3.5 percent, the Attorney General shall place the
program country in probationary status for a period not
to exceed 2 full fiscal years following the year in which
the determination under subparagraph (A) is made.
‘‘(C) TERMINATION OF DESIGNATION.—Subject to paragraph (3), if the program country’s disqualification rate
is 3.5 percent or more, the Attorney General shall terminate
the country’s designation as a pilot program country effective at the beginning of the second fiscal year following
the fiscal year in which the determination under subparagraph (A) is made.
‘‘(2) TERMINATION OF PROBATIONARY STATUS.—

110 STAT. 3009–703

8 USC 1187 note.

8 USC 1153 note.

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(A) IN GENERAL.—If the Attorney General determines
at the end of the probationary period described in paragraph (1)(B) that the program country placed in probationary status under such paragraph has failed to develop
a machine-readable passport program as required by section (c)(2)(C), or has a disqualification rate of 2 percent
or more, the Attorney General shall terminate the designation of the country as a pilot program country. If the
Attorney General determines that the program country
has developed a machine-readable passport program and
has a disqualification rate of less than 2 percent, the Attorney General shall redesignate the country as a pilot program country.
‘‘(B) EFFECTIVE DATE.—A termination of the designation of a country under subparagraph (A) shall take effect
on the first day of the first fiscal year following the fiscal
year in which the determination under such subparagraph
is made. Until such date, nationals of the country shall
remain eligible for a waiver under subsection (a).
‘‘(3) NONAPPLICABILITY OF CERTAIN PROVISIONS.—Paragraph
(1)(C) shall not apply unless the total number of nationals
of a pilot program country described in paragraph (4)(A) exceeds
100.
‘‘(4) DEFINITION.—For purposes of this subsection, the term
‘disqualification rate’ means the percentage which—
‘‘(A) the total number of nationals of the pilot program
country who were—
‘‘(i) excluded from admission or withdrew their
application for admission during the most recent fiscal
year for which data are available; and
‘‘(ii) admitted as nonimmigrant visitors during
such fiscal year and who violated the terms of such
admission; bears to
‘‘(B) the total number of nationals of such country
who applied for admission as nonimmigrant visitors during
such fiscal year.’’.
(2) TRANSITION.—A country designated as a pilot program
country with probationary status under section 217(g) of the
Immigration and Nationality Act (as in effect on the day before
the date of the enactment of this Act) shall be considered
to be designated as a pilot program country on and after such
date, subject to placement in probationary status or termination
of such designation under such section (as amended by paragraph (1)).
(3) CONFORMING AMENDMENT.—Section 217(a)(2)(B) (8
U.S.C. 1187(a)(2)(B)) is amended by striking ‘‘or is’’ through
‘‘subsection (g).’’ and inserting a period.
SEC. 636. FEE FOR DIVERSITY IMMIGRANT LOTTERY.

The Secretary of State may establish a fee to be paid by
each applicant for an immigrant visa described in section 203(c)
of the Immigration and Nationality Act. Such fee may be set at
a level that will ensure recovery of the cost to the Department
of State of allocating visas under such section, including the cost
of processing all applications thereunder. All fees collected under
this section shall be used for providing consular services. All fees
collected under this section shall be deposited as an offsetting

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110 STAT. 3009–704

collection to any Department of State appropriation and shall
remain available for obligations until expended. The provisions
of the Act of August 18, 1856 (11 Stat. 58; 22 U.S.C. 4212–4214),
concerning accounting for consular fees, shall not apply to fees
collected under this section.
SEC. 637. ELIGIBILITY FOR VISAS FOR CERTAIN POLISH APPLICANTS
FOR THE 1995 DIVERSITY IMMIGRANT PROGRAM.

8 USC 1153 note.

(a) IN GENERAL.—The Attorney General, in consultation with
the Secretary of State, shall include among the aliens selected
for diversity immigrant visas for fiscal year 1997 pursuant to section
203(c) of the Immigration and Nationality Act any alien who, on
or before September 30, 1995—
(1) was selected as a diversity immigrant under such section for fiscal year 1995;
(2) applied for adjustment of status to that of an alien
lawfully admitted for permanent residence pursuant to section
245 of such Act during fiscal year 1995, and whose application,
and any associated fees, were accepted by the Attorney General,
in accordance with applicable regulations;
(3) was not determined by the Attorney General to be
excludable under section 212 of such Act or ineligible under
section 203(c)(2) of such Act; and
(4) did not become an alien lawfully admitted for permanent
residence during fiscal year 1995.
(b) PRIORITY.—The aliens selected under subsection (a) shall
be considered to have been selected for diversity immigrant visas
for fiscal year 1997 prior to any alien selected under any other
provision of law.
(c) REDUCTION OF IMMIGRANT VISA NUMBER.—For purposes
of applying the numerical limitations in sections 201 and 203(c)
of the Immigration and Nationality Act, aliens selected under subsection (a) who are granted an immigrant visa shall be treated
as aliens granted a visa under section 203(c) of such Act.

Subtitle D—Other Provisions
SEC. 641. PROGRAM TO COLLECT INFORMATION RELATING TO NONIMMIGRANT FOREIGN STUDENTS AND OTHER EXCHANGE
PROGRAM PARTICIPANTS.

(a) IN GENERAL.—
(1) PROGRAM.—The Attorney General, in consultation with
the Secretary of State and the Secretary of Education, shall
develop and conduct a program to collect from approved institutions of higher education and designated exchange visitor programs in the United States the information described in subsection (c) with respect to aliens who—
(A) have the status, or are applying for the status,
of nonimmigrants under subparagraph (F), (J), or (M) of
section 101(a)(15) of the Immigration and Nationality Act;
and
(B) are nationals of the countries designated under
subsection (b).
(2) DEADLINE.—The program shall commence not later than
January 1, 1998.

8 USC 1372.

110 STAT. 3009–705

PUBLIC LAW 104–208—SEPT. 30, 1996

(b) COVERED COUNTRIES.—The Attorney General, in consultation with the Secretary of State, shall designate countries for purposes of subsection (a)(1)(B). The Attorney General shall initially
designate not less than 5 countries and may designate additional
countries at any time while the program is being conducted.
(c) INFORMATION TO BE COLLECTED.—
(1) IN GENERAL.—The information for collection under subsection (a) with respect to an alien consists of—
(A) the identity and current address in the United
States of the alien;
(B) the nonimmigrant classification of the alien and
the date on which a visa under the classification was
issued or extended or the date on which a change to such
classification was approved by the Attorney General;
(C) in the case of a student at an approved institution
of higher education, the current academic status of the
alien, including whether the alien is maintaining status
as a full-time student or, in the case of a participant
in a designated exchange visitor program, whether the
alien is satisfying the terms and conditions of such program; and
(D) in the case of a student at an approved institution
of higher education, any disciplinary action taken by the
institution against the alien as a result of the alien’s being
convicted of a crime or, in the case of a participant in
a designated exchange visitor program, any change in the
alien’s participation as a result of the alien’s being convicted of a crime.
(2) FERPA.—The Family Educational Rights and Privacy
Act of 1974 shall not apply to aliens described in subsection
(a) to the extent that the Attorney General determines necessary to carry out the program under subsection (a).
(3) ELECTRONIC COLLECTION.—The information described
in paragraph (1) shall be collected electronically, where practicable.
(4) COMPUTER SOFTWARE.—
(A) COLLECTING INSTITUTIONS.—To the extent practicable, the Attorney General shall design the program
in a manner that permits approved institutions of higher
education and designated exchange visitor programs to use
existing software for the collection, storage, and data
processing of information described in paragraph (1).
(B) ATTORNEY GENERAL.—To the extent practicable,
the Attorney General shall use or enhance existing software
for the collection, storage, and data processing of information described in paragraph (1).
(d) PARTICIPATION BY INSTITUTIONS OF HIGHER EDUCATION AND
EXCHANGE VISITOR PROGRAMS.—
(1) CONDITION.—The information described in subsection
(c) shall be provided by as a condition of—
(A) in the case of an approved institution of higher
education, the continued approval of the institution under
subparagraph (F) or (M) of section 101(a)(15) of the
Immigration and Nationality Act; and
(B) in the case of an approved institution of higher
education or a designated exchange visitor program, the

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110 STAT. 3009–706

granting of authority to issue documents to an alien demonstrating the alien’s eligibility for a visa under subparagraph (F), (J), or (M) of section 101(a)(15) of such Act.
(2) EFFECT OF FAILURE TO PROVIDE INFORMATION.—If an
approved institution of higher education or a designated
exchange visitor program fails to provide the specified information, such approvals and such issuance of visas shall be revoked
or denied.
(e) FUNDING.—
(1) IN GENERAL.—Beginning on April 1, 1997, an approved
institution of higher education and a designated exchange visitor program shall impose on, and collect from, each alien
described in paragraph (3), with respect to whom the institution
or program is required by subsection (a) to collect information,
a fee established by the Attorney General under paragraph
(4) at the time—
(A) when the alien first registers with the institution
or program after entering the United States; or
(B) in a case where a registration under subparagraph
(A) does not exist, when the alien first commences activities
in the United States with the institution or program.
(2) REMITTANCE.—An approved institution of higher education and a designated exchange visitor program shall remit
the fees collected under paragraph (1) to the Attorney General
pursuant to a schedule established by the Attorney General.
(3) ALIENS DESCRIBED.—An alien referred to in paragraph
(1) is an alien who has nonimmigrant status under subparagraph (F), (J), or (M) of section 101(a)(15) of the Immigration
and Nationality Act (other than a nonimmigrant under section
101(a)(15)(J) of such Act who has come to the United States
as a participant in a program sponsored by the Federal Government).
(4) AMOUNT AND USE OF FEES.—
(A) ESTABLISHMENT OF AMOUNT.—The Attorney General shall establish the amount of the fee to be imposed
on, and collected from, an alien under paragraph (1). Except
as provided in subsection (g)(2), the fee imposed on any
individual may not exceed $100. The amount of the fee
shall be based on the Attorney General’s estimate of the
cost per alien of conducting the information collection program described in this section.
(B) USE.—Fees collected under paragraph (1) shall be
deposited as offsetting receipts into the Immigration
Examinations Fee Account (established under section
286(m) of the Immigration and Nationality Act) and shall
remain available until expended for the Attorney General
to reimburse any appropriation the amount paid out of
which is for expenses in carrying out this section.
(f) JOINT REPORT.—Not later than 4 years after the commencement of the program established under subsection (a), the Attorney
General, the Secretary of State, and the Secretary of Education
shall jointly submit to the Committees on the Judiciary of the
Senate and the House of Representatives a report on the operations
of the program and the feasibility of expanding the program to
cover the nationals of all countries.
(g) WORLDWIDE APPLICABILITY OF THE PROGRAM.—
(1) EXPANSION OF PROGRAM.—

110 STAT. 3009–707

PUBLIC LAW 104–208—SEPT. 30, 1996

(A) IN GENERAL.—Not later than 6 months after the
submission of the report required by subsection (f), the
Attorney General, in consultation with the Secretary of
State and the Secretary of Education, shall commence
expansion of the program to cover the nationals of all
countries.
(B) DEADLINE.—Such expansion shall be completed not
later than 1 year after the date of the submission of the
report referred to in subsection (f).
(2) REVISION OF FEE.—After the program has been
expanded, as provided in paragraph (1), the Attorney General
may, on a periodic basis, revise the amount of the fee imposed
and collected under subsection (e) in order to take into account
changes in the cost of carrying out the program.
(h) DEFINITIONS.—As used in this section:
(1) APPROVED INSTITUTION OF HIGHER EDUCATION.—The
term ‘‘approved institution of higher education’’ means a college
or university approved by the Attorney General, in consultation
with the Secretary of Education, under subparagraph (F), (J),
or (M) of section 101(a)(15) of the Immigration and Nationality
Act.
(2) DESIGNATED EXCHANGE VISITOR PROGRAM.—The term
‘‘designated exchange visitor program’’ means a program that
has been—
(A) designated by the Director of the United States
Information Agency for purposes of section 101(a)(15)(J)
of the Immigration and Nationality Act; and
(B) selected by the Attorney General for purposes of
the program under this section.
8 USC 1373.

SEC. 642. COMMUNICATION BETWEEN GOVERNMENT AGENCIES AND
THE IMMIGRATION AND NATURALIZATION SERVICE.

(a) IN GENERAL.—Notwithstanding any other provision of Federal, State, or local law, a Federal, State, or local government
entity or official may not prohibit, or in any way restrict, any
government entity or official from sending to, or receiving from,
the Immigration and Naturalization Service information regarding
the citizenship or immigration status, lawful or unlawful, of any
individual.
(b) ADDITIONAL AUTHORITY OF GOVERNMENT ENTITIES.—Notwithstanding any other provision of Federal, State, or local law,
no person or agency may prohibit, or in any way restrict, a Federal,
State, or local government entity from doing any of the following
with respect to information regarding the immigration status, lawful
or unlawful, of any individual:
(1) Sending such information to, or requesting or receiving
such information from, the Immigration and Naturalization
Service.
(2) Maintaining such information.
(3) Exchanging such information with any other Federal,
State, or local government entity.
(c) OBLIGATION TO RESPOND TO INQUIRIES.—The Immigration
and Naturalization Service shall respond to an inquiry by a Federal,
State, or local government agency, seeking to verify or ascertain
the citizenship or immigration status of any individual within the
jurisdiction of the agency for any purpose authorized by law, by
providing the requested verification or status information.

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110 STAT. 3009–708

SEC. 643. REGULATIONS REGARDING HABITUAL RESIDENCE.

Not later than 6 months after the date of the enactment of
this Act, the Commissioner of Immigration and Naturalization shall
issue regulations governing rights of ‘‘habitual residence’’ in the
United States under the terms of the following:
(1) The Compact of Free Association between the Government of the United States and the Governments of the Marshall
Islands and the Federated States of Micronesia (48 U.S.C.
1901 note).
(2) The Compact of Free Association between the Government of the United States and the Government of Palau (48
U.S.C. 1931 note).
SEC. 644. INFORMATION REGARDING FEMALE GENITAL MUTILATION.

48 USC 1901
note.

8 USC 1374.

(a) PROVISION OF INFORMATION REGARDING FEMALE GENITAL
MUTILATION.—The Immigration and Naturalization Service (in
cooperation with the Department of State) shall make available
for all aliens who are issued immigrant or nonimmigrant visas,
prior to or at the time of entry into the United States, the following
information:
(1) Information on the severe harm to physical and psychological health caused by female genital mutilation which is
compiled and presented in a manner which is limited to the
practice itself and respectful to the cultural values of the societies in which such practice takes place.
(2) Information concerning potential legal consequences in
the United States for (A) performing female genital mutilation,
or (B) allowing a child under his or her care to be subjected
to female genital mutilation, under criminal or child protection
statutes or as a form of child abuse.
(b) LIMITATION.—In consultation with the Secretary of State,
the Commissioner of Immigration and Naturalization shall identify
those countries in which female genital mutilation is commonly
practiced and, to the extent practicable, limit the provision of
information under subsection (a) to aliens from such countries.
(c) DEFINITION.—For purposes of this section, the term ‘‘female
genital mutilation’’ means the removal or infibulation (or both)
of the whole or part of the clitoris, the labia minora, or labia
majora.
SEC. 645. CRIMINALIZATION OF FEMALE GENITAL MUTILATION.

(a) FINDINGS.—The Congress finds that—
(1) the practice of female genital mutilation is carried out
by members of certain cultural and religious groups within
the United States;
(2) the practice of female genital mutilation often results
in the occurrence of physical and psychological health effects
that harm the women involved;
(3) such mutilation infringes upon the guarantees of rights
secured by Federal and State law, both statutory and constitutional;
(4) the unique circumstances surrounding the practice of
female genital mutilation place it beyond the ability of any
single State or local jurisdiction to control;
(5) the practice of female genital mutilation can be prohibited without abridging the exercise of any rights guaranteed

18 USC 116 note.

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under the first amendment to the Constitution or under any
other law; and
(6) Congress has the affirmative power under section 8
of article I, the necessary and proper clause, section 5 of the
fourteenth Amendment, as well as under the treaty clause,
to the Constitution to enact such legislation.
(b) CRIME.—
(1) IN GENERAL.—Chapter 7 of title 18, United States Code,
is amended by adding at the end the following:
‘‘§ 116. Female genital mutilation
‘‘(a) Except as provided in subsection (b), whoever knowingly
circumcises, excises, or infibulates the whole or any part of the
labia majora or labia minora or clitoris of another person who
has not attained the age of 18 years shall be fined under this
title or imprisoned not more than 5 years, or both.
‘‘(b) A surgical operation is not a violation of this section if
the operation is—
‘‘(1) necessary to the health of the person on whom it
is performed, and is performed by a person licensed in the
place of its performance as a medical practitioner; or
‘‘(2) performed on a person in labor or who has just given
birth and is performed for medical purposes connected with
that labor or birth by a person licensed in the place it is
performed as a medical practitioner, midwife, or person in
training to become such a practitioner or midwife.
‘‘(c) In applying subsection (b)(1), no account shall be taken
of the effect on the person on whom the operation is to be performed
of any belief on the part of that person, or any other person,
that the operation is required as a matter of custom or ritual.’’.
(2) CONFORMING AMENDMENT.—The table of sections at
the beginning of chapter 7 of title 18, United States Code,
is amended by adding at the end the following new item:
‘‘116. Female genital mutilation.’’.
18 USC 116 note.

(c) EFFECTIVE DATE.—The amendments made by subsection
(b) shall take effect on the date that is 180 days after the date
of the enactment of this Act.

8 USC 1255 note.

SEC. 646. ADJUSTMENT OF STATUS FOR CERTAIN POLISH AND
HUNGARIAN PAROLEES.

(a) IN GENERAL.—The Attorney General shall adjust the status
of an alien described in subsection (b) to that of an alien lawfully
admitted for permanent residence if the alien—
(1) applies for such adjustment;
(2) has been physically present in the United States for
at least 1 year and is physically present in the United States
on the date the application for such adjustment is filed;
(3) is admissible to the United States as an immigrant,
except as provided in subsection (c); and
(4) pays a fee (determined by the Attorney General) for
the processing of such application.
(b) ALIENS ELIGIBLE FOR ADJUSTMENT OF STATUS.—The benefits
provided in subsection (a) shall only apply to an alien who—
(1) was a national of Poland or Hungary; and

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110 STAT. 3009–710

(2) was inspected and granted parole into the United States
during the period beginning on November 1, 1989, and ending
on December 31, 1991, after being denied refugee status.
(c) WAIVER OF CERTAIN GROUNDS FOR INADMISSIBILITY.—The
provisions of paragraphs (4), (5), and (7)(A) of section 212(a) of
the Immigration and Nationality Act shall not apply to adjustment
of status under this section and the Attorney General may waive
any other provision of such section (other than paragraph (2)(C)
and subparagraphs (A), (B), (C), or (E) of paragraph (3)) with
respect to such an adjustment for humanitarian purposes, to assure
family unity, or when it is otherwise in the public interest.
(d) DATE OF APPROVAL.—Upon the approval of such an application for adjustment of status, the Attorney General shall create
a record of the alien’s admission as an alien lawfully admitted
for permanent residence as of the date of the alien’s inspection
and parole described in subsection (b)(2).
(e) NO OFFSET IN NUMBER OF VISAS AVAILABLE.—When an
alien is granted the status of having been lawfully admitted for
permanent residence under this section, the Secretary of State
shall not be required to reduce the number of immigrant visas
authorized to be issued under the Immigration and Nationality
Act.
SEC. 647. SUPPORT OF DEMONSTRATION PROJECTS.

(a) IN GENERAL.—The Attorney General shall make available
funds under this section, in each of fiscal years 1997 through
2001, to the Commissioner of Immigration and Naturalization or
to other public or private nonprofit entities to support demonstration projects under this section at 10 sites throughout the United
States. Each such project shall be designed to provide for the
administration of the oath of allegiance under section 337(a) of
the Immigration and Nationality Act on a business day around
Independence Day to approximately 500 people whose application
for naturalization has been approved. Each project shall provide
for appropriate outreach and ceremonial and celebratory activities.
(b) SELECTION OF SITES.—The Attorney General shall, in the
Attorney General’s discretion, select diverse locations for sites on
the basis of the number of naturalization applicants living in
proximity to each site and the degree of local community participation and support in the project to be held at the site. Not more
than 2 sites may be located in the same State. The Attorney
General shall consider changing the sites selected from year to
year.
(c) AMOUNTS AVAILABLE; USE OF FUNDS.—
(1) AMOUNT.—The amount made available under this section with respect to any single site for a year shall not exceed
$5,000.
(2) USE.—Funds made available under this section may
be used only to cover expenses incurred in carrying out oath
administration ceremonies at the demonstration sites under
subsection (a), including expenses for—
(A) cost of personnel of the Immigration and Naturalization Service (including travel and overtime expenses);
(B) rental of space; and
(C) costs of printing appropriate brochures and other
information about the ceremonies.

8 USC 1448 note.

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(3) AVAILABILITY OF FUNDS.—Funds that are otherwise
available to the Immigration and Naturalization Service to
carry out naturalization activities shall be available, to the
extent provided in appropriation Acts, to carry out this section.
(d) APPLICATION.—In the case of an entity other than the
Immigration and Naturalization Service seeking to conduct a demonstration project under this section, no amounts may be made
available to the entity under this section unless an appropriate
application has been made to, and approved by, the Attorney General, in a form and manner specified by the Attorney General.
8 USC 1101 note.

SEC. 648. SENSE OF CONGRESS REGARDING AMERICAN-MADE PRODUCTS; REQUIREMENTS REGARDING NOTICE.

(a) PURCHASE OF AMERICAN-MADE EQUIPMENT AND PRODis the sense of the Congress that, to the greatest extent
practicable, all equipment and products purchased with funds made
available under this division should be American-made.
(b) NOTICE TO RECIPIENTS OF GRANTS.—In providing grants
under this division, the Attorney General, to the greatest extent
practicable, shall provide to each recipient of a grant a notice
describing the statement made in subsection (a) by the Congress.
UCTS.—It

SEC. 649. VESSEL MOVEMENT CONTROLS DURING IMMIGRATION
EMERGENCY.

Section 1 of the Act of June 15, 1917 (50 U.S.C. 191) is amended
in the first sentence by inserting ‘‘or whenever the Attorney General
determines that an actual or anticipated mass migration of aliens
en route to, or arriving off the coast of, the United States presents
urgent circumstances requiring an immediate Federal response,’’
after ‘‘United States,’’ the first place such term appears.
SEC. 650. REVIEW OF PRACTICES OF TESTING ENTITIES.

(a) IN GENERAL.—The Attorney General shall investigate, and
submit a report to the Committees on the Judiciary of the House
of Representatives and of the Senate regarding, the practices of
entities authorized to administer standardized citizenship tests
pursuant to section 312.3(a) of title 8, Code of Federal Regulations.
The report shall include any findings of fraudulent practices by
such entities.
(b) PRELIMINARY AND FINAL REPORTS.—Not later than 90 days
after the date of the enactment of this Act, the Attorney General
shall submit to the Committees on the Judiciary of the House
of Representatives and of the Senate a preliminary report on the
investigation conducted under subsection (a). The Attorney General
shall submit to such Committees a final report on such investigation
not later than 275 days after the submission of the preliminary
report.
SEC. 651. DESIGNATION OF A UNITED STATES CUSTOMS ADMINISTRATIVE BUILDING.

(a) DESIGNATION.—The United States Customs Administrative
Building at the Ysleta/Zaragosa Port of Entry located at 797 South
Zaragosa Road in El Paso, Texas, is designated as the ‘‘Timothy
C. McCaghren Customs Administrative Building’’.
(b) LEGAL REFERENCES.—Any reference in any law, regulation,
document, record, map, or other paper of the United States to
the building referred to in subsection (a) is deemed to be a reference
to the ‘‘Timothy C. McCaghren Customs Administrative Building’’.

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110 STAT. 3009–712

SEC. 652. MAIL-ORDER BRIDE BUSINESS.

(a) FINDINGS.—The Congress finds as follows:
(1) There is a substantial ‘‘mail-order bride’’ business in
the United States. With approximately 200 companies in the
United States, an estimated 2,000 to 3,500 men in the United
States find wives through mail-order bride catalogs each year.
However, there are no official statistics available on the number
of mail-order brides entering the United States each year.
(2) The companies engaged in the mail-order bride business
earn substantial profits.
(3) Although many of these mail-order marriages work
out, in many other cases, anecdotal evidence suggests that
mail-order brides find themselves in abusive relationships.
There is also evidence to suggest that a substantial number
of mail-order marriages are fraudulent under United States
law.
(4) Many mail-order brides come to the United States
unaware or ignorant of United States immigration law. Mailorder brides who are battered often think that if they flee
an abusive marriage, they will be deported. Often the citizen
spouse threatens to have them deported if they report the
abuse.
(5) The Immigration and Naturalization Service estimates
that the rate of marriage fraud between foreign nationals and
United States citizens or aliens lawfully admitted for permanent residence is 8 percent. It is unclear what percentage
of these marriage fraud cases originate as mail-order marriages.
(b) INFORMATION DISSEMINATION.—
(1) REQUIREMENT.—Each international matchmaking
organization doing business in the United States shall disseminate to recruits, upon recruitment, such immigration and naturalization information as the Immigration and Naturalization
Service deems appropriate, in the recruit’s native language,
including information regarding conditional permanent residence status and the battered spouse waiver under such status,
permanent resident status, marriage fraud penalties, the
unregulated nature of the business engaged in by such
organizations, and the study required under subsection (c).
(2) CIVIL PENALTY.—
(A) VIOLATION.—Any international matchmaking
organization that the Attorney General determines has
violated subsection (b) shall be subject, in addition to any
other penalties that may be prescribed by law, to a civil
money penalty of not more than $20,000 for each such
violation.
(B) PROCEDURES FOR IMPOSITION OF PENALTY.—Any
penalty under subparagraph (A) may be imposed only after
notice and opportunity for an agency hearing on the record
in accordance with sections 554 through 557 of title 5,
United States Code.
(c) STUDY.—The Attorney General, in consultation with the
Commissioner of Immigration and Naturalization and the Director
of the Violence Against Women Initiative of the Department of
Justice, shall conduct a study of mail-order marriages to determine,
among other things—
(1) the number of such marriages;

8 USC 1375.

110 STAT. 3009–713

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(2) the extent of marriage fraud in such marriages, including an estimate of the extent of marriage fraud arising from
the services provided by international matchmaking organizations;
(3) the extent to which mail-order spouses utilize section
244(a)(3) of the Immigration and Nationality Act (providing
for suspension of deportation in certain cases involving abuse),
or section 204(a)(1)(A)(iii) of such Act (providing for certain
aliens who have been abused to file a classification petition
on their own behalf);
(4) the extent of domestic abuse in mail-order marriages;
and
(5) the need for continued or expanded regulation and
education to implement the objectives of the Violence Against
Women Act of 1994 and the Immigration Marriage Fraud
Amendments of 1986 with respect to mail-order marriages.
(d) REPORT.—Not later than 1 year after the date of the enactment of this Act, the Attorney General shall submit a report to
the Committees on the Judiciary of the House of Representatives
and of the Senate setting forth the results of the study conducted
under subsection (c).
(e) DEFINITIONS.—As used in this section:
(1) INTERNATIONAL MATCHMAKING ORGANIZATION.—
(A) IN GENERAL.—The term ‘‘international matchmaking organization’’ means a corporation, partnership,
business, or other legal entity, whether or not organized
under the laws of the United States or any State, that
does business in the United States and for profit offers
to United States citizens or aliens lawfully admitted for
permanent residence, dating, matrimonial, or social referral
services to nonresident noncitizens, by—
(i) an exchange of names, telephone numbers,
addresses, or statistics;
(ii) selection of photographs; or
(iii) a social environment provided by the organization in a country other than the United States.
(B) EXCEPTION.—Such term does not include a traditional matchmaking organization of a religious nature that
otherwise operates in compliance with the laws of the
countries of the recruits of such organization and the laws
of the United States.
(2) RECRUIT.—The term ‘‘recruit’’ means a noncitizen, nonresident person, recruited by the international matchmaking
organization for the purpose of providing dating, matrimonial,
or social referral services to United States citizens or aliens
lawfully admitted for permanent residence.
SEC. 653. REVIEW AND REPORT ON H–2A NONIMMIGRANT WORKERS
PROGRAM.

(a) SENSE OF THE CONGRESS.—It is the sense of the Congress
that the H2–A nonimmigrant worker program should be reviewed
and may need improvement in order to meet the need of producers
of labor-intensive agricultural commodities and livestock in the
United States for an adequate workforce.
(b) REVIEW.—The Comptroller General shall review the
effectiveness of the H–2A nonimmigrant worker program to ensure
that the program provides a sufficient supply of agricultural labor

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–714

in the event of future shortages of domestic workers after the
enactment of this Act. Among other things, the Comptroller General
shall review the H–2A nonimmigrant worker program to determine—
(1) whether the program ensures that an adequate supply
of qualified United States workers is available at the time
and place needed for employers seeking such workers after
the date of enactment of this Act;
(2) whether the program ensures that there is timely
approval of applications for temporary foreign workers under
the program in the event of shortages of United States workers
after the date of the enactment of this Act;
(3) whether the program ensures that implementation of
the program is not displacing United States agricultural workers or diminishing the terms and conditions of employment
of United States agricultural workers;
(4) if, and to what extent, the program is contributing
to the problem of illegal immigration; and
(5) that the program adequately meets the needs of agricultural employers for all types of temporary foreign agricultural
workers, including higher-skilled workers in occupations which
require a level of specific vocational preparation of 4 or higher
(as described in the 4th edition of the Dictionary of Occupational
Title, published by the Department of Labor).
(c) REPORT.—Not later than December 31, 1996, or 3 months
after the date of the enactment of this Act, whichever occurs earlier,
the Comptroller General shall submit a report to the appropriate
committees of the Congress setting forth the conclusions of the
Comptroller General from the review conducted under subsection
(b).
(d) DEFINITIONS.—As used in this section:
(1) The term ‘‘Comptroller General’’ means the Comptroller
General of the United States.
(2) The term ‘‘H–2A nonimmigrant worker program’’ means
the program for the admission of nonimmigrant aliens described
in section 101(a)(15)(H)(ii)(a) of the Immigration and Nationality Act.
SEC. 654. REPORT ON ALLEGATIONS OF HARASSMENT BY CANADIAN
CUSTOMS AGENTS.

(a) STUDY AND REVIEW.—
(1) IN GENERAL.—Not later than 30 days after the date
of the enactment of this Act, the Commissioner of the United
States Customs Service shall initiate a study of harassment
by Canadian customs agents allegedly undertaken for the purpose of deterring cross-border commercial activity along the
United States-New Brunswick border. Such study shall include
a review of the possible connection between any incidents of
harassment and the discriminatory imposition of the New
Brunswick provincial sales tax on goods purchased in the
United States by New Brunswick residents, and with any other
actions taken by the Canadian provincial governments to deter
cross-border commercial activities.
(2) CONSULTATION.—In conducting the study under paragraph (1), the Commissioner of the United States Customs
Service shall consult with representatives of the State of Maine,

110 STAT. 3009–715

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local governments, local businesses, and any other knowledgeable persons who the Commissioner considers to be important
to the completion of the study.
(b) REPORT.—Not later than 120 days after the date of the
enactment of this Act, the Commissioner of the United States
Customs Service shall submit to the Committees on the Judiciary
of the House of Representatives and of the Senate a report on
the study and review conducted under subsection (a). The report
shall include recommendations for steps that the United States
Government can take to help end any harassment by Canadian
customs agents that is found to have occurred.
SEC. 655. SENSE OF CONGRESS ON DISCRIMINATORY APPLICATION
OF NEW BRUNSWICK PROVINCIAL SALES TAX.

(a) FINDINGS.—The Congress finds as follows:
(1) In July 1993, Canadian customs officers began collecting
an 11 percent New Brunswick provincial sales tax on goods
purchased in the United States by New Brunswick residents,
an action that has caused severe economic harm to United
States businesses located in proximity to the border with New
Brunswick.
(2) This impediment to cross-border trade compounds the
damage already done from the Canadian Government’s imposition of a 7 percent tax on all goods bought by Canadians
in the United States.
(3) Collection of the New Brunswick provincial sales tax
on goods purchased outside of New Brunswick is effected only
along the United States-Canadian border, not along New Brunswick’s borders with other Canadian provinces; the tax is thus
being administered by Canadian authorities in a manner
uniquely discriminatory to Canadians shopping in the United
States.
(4) In February 1994, the United States Trade Representative publicly stated an intention to seek redress from the
discriminatory application of the New Brunswick provincial
sales tax under the dispute resolution process in chapter 20
of the North American Free Trade Agreement (NAFTA), but
the United States Government has still not made such a claim
under NAFTA procedures.
(5) Initially, the United States Trade Representative argued
that filing a New Brunswick provincial sales tax claim was
delayed only because the dispute mechanism under NAFTA
had not yet been finalized, but more than a year after such
mechanism has been put in place, the claim has still not been
put forward by the United States Trade Representative.
(b) SENSE OF CONGRESS.—It is the sense of the Congress that—
(1) the provincial sales tax levied by the Canadian province
of New Brunswick on Canadian citizens of that province who
purchase goods in the United States—
(A) raises questions about a possible violation of the
North American Free Trade Agreement in the discriminatory application of the tax to cross-border trade with the
United States; and
(B) damages good relations between the United States
and Canada; and
(2) the United States Trade Representative should move
forward without further delay in seeking redress under the

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–716

dispute resolution process in chapter 20 of the North American
Free Trade Agreement for the violation.
SEC. 656. IMPROVEMENTS IN IDENTIFICATION-RELATED DOCUMENTS.

(a) BIRTH CERTIFICATES.—
(1) STANDARDS FOR ACCEPTANCE BY FEDERAL AGENCIES.—
(A) IN GENERAL.—
(i) GENERAL RULE.—Subject to clause (ii), a Federal
agency may not accept for any official purpose a certificate of birth, unless the certificate—
(I) is a birth certificate (as defined in paragraph (3)); and
(II) conforms to the standards set forth in
the regulation promulgated under subparagraph
(B).
(ii) APPLICABILITY.—Clause (i) shall apply only to
a certificate of birth issued after the day that is 3
years after the date of the promulgation of a final
regulation under subparagraph (B). Clause (i) shall
not be construed to prevent a Federal agency from
accepting for official purposes any certificate of birth
issued on or before such day.
(B) REGULATION.—
(i) CONSULTATION WITH GOVERNMENT AGENCIES.—
The President shall select 1 or more Federal agencies
to consult with State vital statistics offices, and with
other appropriate Federal agencies designated by the
President, for the purpose of developing appropriate
standards for birth certificates that may be accepted
for official purposes by Federal agencies, as provided
in subparagraph (A).
(ii) SELECTION OF LEAD AGENCY.—Of the Federal
agencies selected under clause (i), the President shall
select 1 agency to promulgate, upon the conclusion
of the consultation conducted under such clause, a
regulation establishing standards of the type described
in such clause.
(iii) DEADLINE.—The agency selected under clause
(ii) shall promulgate a final regulation under such
clause not later than the date that is 1 year after
the date of the enactment of this Act.
(iv) MINIMUM REQUIREMENTS.—The standards
established under this subparagraph—
(I) at a minimum, shall require certification
of the birth certificate by the State or local custodian of record that issued the certificate, and shall
require the use of safety paper, the seal of the
issuing custodian of record, and other features
designed to limit tampering, counterfeiting, and
photocopying, or otherwise duplicating, the birth
certificate for fraudulent purposes;
(II) may not require a single design to which
birth certificates issued by all States must conform; and
(III) shall accommodate the differences
between the States in the manner and form in

5 USC 301 note.

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which birth records are stored and birth certificates are produced from such records.
(2) GRANTS TO STATES.—
(A) ASSISTANCE IN MEETING FEDERAL STANDARDS.—
(i) IN GENERAL.—Beginning on the date a final
regulation is promulgated under paragraph (1)(B), the
Secretary of Health and Human Services, acting
through the Director of the National Center for Health
Statistics and after consulting with the head of any
other agency designated by the President, shall make
grants to States to assist them in issuing birth certificates that conform to the standards set forth in the
regulation.
(ii) ALLOCATION OF GRANTS.—The Secretary shall
provide grants to States under this subparagraph in
proportion to the populations of the States applying
to receive a grant and in an amount needed to provide
a substantial incentive for States to issue birth certificates that conform to the standards described in clause
(i).
(B) ASSISTANCE IN MATCHING BIRTH AND DEATH
RECORDS.—
(i) IN GENERAL.—The Secretary of Health and
Human Services, acting through the Director of the
National Center for Health Statistics and after consulting with the head of any other agency designated by
the President, shall make grants to States to assist
them in developing the capability to match birth and
death records, within each State and among the States,
and to note the fact of death on the birth certificates
of deceased persons. In developing the capability
described in the preceding sentence, a State that
receives a grant under this subparagraph shall focus
first on individuals born after 1950.
(ii) ALLOCATION AND AMOUNT OF GRANTS.—The
Secretary shall provide grants to States under this
subparagraph in proportion to the populations of the
States applying to receive a grant and in an amount
needed to provide a substantial incentive for States
to develop the capability described in clause (i).
(C) DEMONSTRATION PROJECTS.—The Secretary of
Health and Human Services, acting through the Director
of the National Center for Health Statistics, shall make
grants to States for a project in each of 5 States to demonstrate the feasibility of a system under which persons
otherwise required to report the death of individuals to
a State would be required to provide to the State’s office
of vital statistics sufficient information to establish the
fact of death of every individual dying in the State within
24 hours of acquiring the information.
(3) BIRTH CERTIFICATE.—As used in this subsection, the
term ‘‘birth certificate’’ means a certificate of birth—
(A) of—
(i) an individual born in the United States; or
(ii) an individual born abroad—
(I) who is a citizen or national of the United
States at birth; and

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110 STAT. 3009–718

(II) whose birth is registered in the United
States; and
(B) that—
(i) is a copy, issued by a State or local authorized
custodian of record, of an original certificate of birth
issued by such custodian of record; or
(ii) was issued by a State or local authorized custodian of record and was produced from birth records
maintained by such custodian of record.
(b) STATE-ISSUED DRIVERS LICENSES AND COMPARABLE IDENTIFICATION DOCUMENTS.—
(1) STANDARDS FOR ACCEPTANCE BY FEDERAL AGENCIES.—
(A) IN GENERAL.—A Federal agency may not accept
for any identification-related purpose a driver’s license,
or other comparable identification document, issued by a
State, unless the license or document satisfies the following
requirements:
(i) APPLICATION PROCESS.—The application process
for the license or document shall include the presentation of such evidence of identity as is required by
regulations promulgated by the Secretary of Transportation after consultation with the American Association
of Motor Vehicle Administrators.
(ii) SOCIAL SECURITY NUMBER.—Except as provided
in subparagraph (B), the license or document shall
contain a social security account number that can be
read visually or by electronic means.
(iii) FORM.—The license or document otherwise
shall be in a form consistent with requirements set
forth in regulations promulgated by the Secretary of
Transportation after consultation with the American
Association of Motor Vehicle Administrators. The form
shall contain security features designed to limit
tampering, counterfeiting, photocopying, or otherwise
duplicating, the license or document for fraudulent
purposes and to limit use of the license or document
by impostors.
(B) EXCEPTION.—The requirement in subparagraph
(A)(ii) shall not apply with respect to a driver’s license
or other comparable identification document issued by a
State, if the State—
(i) does not require the license or document to
contain a social security account number; and
(ii) requires—
(I) every applicant for a driver’s license, or
other comparable identification document, to submit the applicant’s social security account number;
and
(II) an agency of the State to verify with the
Social Security Administration that such account
number is valid.
(C) DEADLINE.—The Secretary of Transportation shall
promulgate the regulations referred to in clauses (i) and
(iii) of subparagraph (A) not later than 1 year after the
date of the enactment of this Act.
(2) GRANTS TO STATES.—Beginning on the date final regulations are promulgated under paragraph (1), the Secretary of

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PUBLIC LAW 104–208—SEPT. 30, 1996

Transportation shall make grants to States to assist them
in issuing driver’s licenses and other comparable identification
documents that satisfy the requirements under such paragraph.
(3) EFFECTIVE DATES.—
(A) IN GENERAL.—Except as otherwise provided in this
paragraph, this subsection shall take effect on the date
of the enactment of this Act.
(B) PROHIBITION ON FEDERAL AGENCIES.—Subparagraphs (A) and (B) of paragraph (1) shall take effect beginning on October 1, 2000, but shall apply only to licenses
or documents issued to an individual for the first time
and to replacement or renewal licenses or documents issued
according to State law.
(c) REPORT.—Not later than 1 year after the date of the enactment of this Act, the Secretary of Health and Human Services
shall submit a report to the Congress on ways to reduce the fraudulent obtaining and the fraudulent use of birth certificates, including
any such use to obtain a social security account number or a
State or Federal document related to identification or immigration.
(d) FEDERAL AGENCY DEFINED.—For purposes of this section,
the term ‘‘Federal agency’’ means any of the following:
(1) An Executive agency (as defined in section 105 of title
5, United States Code).
(2) A military department (as defined in section 102 of
such title).
(3) An agency in the legislative branch of the Government
of the United States.
(4) An agency in the judicial branch of the Government
of the United States.
42 USC 405 note.

SEC. 657. DEVELOPMENT OF PROTOTYPE OF COUNTERFEIT-RESISTANT SOCIAL SECURITY CARD.

(a) DEVELOPMENT.—
(1) IN GENERAL.—The Commissioner of Social Security (in
this section referred to as the ‘‘Commissioner’’) shall, in accordance with the provisions of this section, develop a prototype
of a counterfeit-resistant social security card. Such prototype
card—
(A) shall be made of a durable, tamper-resistant material such as plastic or polyester;
(B) shall employ technologies that provide security features, such as magnetic stripes, holograms, and integrated
circuits; and
(C) shall be developed so as to provide individuals
with reliable proof of citizenship or legal resident alien
status.
(2) ASSISTANCE BY ATTORNEY GENERAL.—The Attorney General shall provide such information and assistance as the
Commissioner deems necessary to achieve the purposes of this
section.
(b) STUDIES AND REPORTS.—
(1) IN GENERAL.—The Comptroller General and the
Commissioner of Social Security shall each conduct a study,
and issue a report to the Congress, that examines different
methods of improving the social security card application process.

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110 STAT. 3009–720

(2) ELEMENTS OF STUDIES.—The studies shall include
evaluations of the cost and work load implications of issuing
a counterfeit-resistant social security card for all individuals
over a 3, 5, and 10 year period. The studies shall also evaluate
the feasibility and cost implications of imposing a user fee
for replacement cards and cards issued to individuals who
apply for such a card prior to the scheduled 3, 5, and 10
year phase-in options.
(3) DISTRIBUTION OF REPORTS.—Copies of the reports
described in this subsection, along with facsimiles of the prototype cards as described in subsection (a), shall be submitted
to the Committees on Ways and Means and Judiciary of the
House of Representatives and the Committees on Finance and
Judiciary of the Senate not later than 1 year after the date
of the enactment of this Act.
SEC. 658. BORDER PATROL MUSEUM.

(a) AUTHORITY.—Notwithstanding section 203 of the Federal
Property and Administrative Services Act of 1949 (40 U.S.C. 484)
or any other provision of law, the Attorney General is authorized
to transfer and convey to the Border Patrol Museum and Memorial
Library Foundation, incorporated in the State of Texas, such equipment, artifacts, and memorabilia held by the Immigration and
Naturalization Service as the Attorney General may determine
is necessary to further the purposes of the Museum and Foundation.
(b) TECHNICAL ASSISTANCE.—The Attorney General is authorized to provide technical assistance, through the detail of personnel
of the Immigration and Naturalization Service, to the Border Patrol
Museum and Memorial Library Foundation for the purpose of demonstrating the use of the items transferred under subsection (a).
SEC. 659. SENSE OF THE CONGRESS REGARDING THE MISSION OF
THE IMMIGRATION AND NATURALIZATION SERVICE.

It is the sense of the Congress that the mission statement
of the Immigration and Naturalization Service should include a
statement that it is the responsibility of the Service to detect,
apprehend, and remove those aliens unlawfully present in the
United States, particularly those aliens involved in drug trafficking
or other criminal activity.
SEC. 660. AUTHORITY FOR NATIONAL GUARD TO ASSIST IN TRANSPORTATION OF CERTAIN ALIENS.

Section 112(d)(1) of title 32, United States Code, is amended
by adding at the end the following new sentence: ‘‘The plan as
approved by the Secretary may provide for the use of personnel
and equipment of the National Guard of that State to assist the
Immigration and Naturalization Service in the transportation of
aliens who have violated a Federal or State law prohibiting or
regulating the possession, use, or distribution of a controlled substance.’’.

Subtitle E—Technical Corrections
SEC. 671. MISCELLANEOUS TECHNICAL CORRECTIONS.

(a) AMENDMENTS RELATING TO PUBLIC LAW 103–322 (VIOLENT
CRIME CONTROL AND LAW ENFORCEMENT ACT OF 1994).—

110 STAT. 3009–721
8 USC 1324.

8 USC 1258.

8 USC 1255.

8 USC 1252 note.
8 USC 1101 note.

8 USC 1401 note.

8 USC 1433 note.

8 USC 1255b.

PUBLIC LAW 104–208—SEPT. 30, 1996

(1) Section 60024(1)(F) of the Violent Crime Control and
Law Enforcement Act of 1994 (Public Law 103–322) (in this
subsection referred to as ‘‘VCCLEA’’) is amended by inserting
‘‘United States Code,’’ after ‘‘title 18,’’.
(2) Section 130003(b)(3) of VCCLEA is amended by striking
‘‘Naturalization’’ and inserting ‘‘Nationality’’.
(3)(A) Section 214 (8 U.S.C. 1184) is amended by
redesignating the subsection (j), added by section 130003(b)(2)
of VCCLEA (108 Stat. 2025), and the subsection (k), as amended
by section 622(c) of this division, as subsections (k) and (l),
respectively.
(B) Section 101(a)(15)(S) (8 U.S.C. 1101(a)(15)(S)) is amended by striking ‘‘214(j)’’ and inserting ‘‘214(k)’’.
(4)(A) Section 245 (8 U.S.C. 1255) is amended by
redesignating the subsection (i) added by section 130003(c)(1)
of VCCLEA as subsection (j).
(B) Section 241(a)(2)(A)(i)(I) (8 U.S.C. 1251(a)(2)(A)(i)(I)),
as amended by section 130003(d) of VCCLEA and before
redesignation by section 305(a)(2) of this division, is amended
by striking ‘‘245(i)’’ and inserting ‘‘245(j)’’.
(5) Section 245(j)(3), as added by section 130003(c)(1) of
VCCLEA and as redesignated by paragraph (4)(A), is amended
by striking ‘‘paragraphs (1) or (2)’’ and inserting ‘‘paragraph
(1) or (2)’’.
(6) Section 130007(a) of VCCLEA is amended by striking
‘‘242A(d)’’ and inserting ‘‘242A(a)(3)’’.
(7) The amendments made by this subsection shall be
effective as if included in the enactment of the VCCLEA.
(b) AMENDMENTS RELATING TO IMMIGRATION AND NATIONALITY
TECHNICAL CORRECTIONS ACT OF 1994.—
(1) Section 101(d) of the Immigration and Nationality Technical Corrections Act of 1994 (Public Law 103–416) (in this
subsection referred to as ‘‘INTCA’’) is amended—
(A) by striking ‘‘APPLICATION’’ and all that follows
through ‘‘This’’ and inserting ‘‘APPLICABILITY OF TRANSMISSION REQUIREMENTS.—This’’;
(B) by striking ‘‘any residency or other retention
requirements for’’ and inserting ‘‘the application of any
provision of law relating to residence or physical presence
in the United States for purposes of transmitting United
States’’; and
(C) by striking ‘‘as in effect’’ and all that follows
through the end and inserting ‘‘to any person whose claim
is based on the amendment made by subsection (a) or
through whom such a claim is derived.’’.
(2) Section 102 of INTCA is amended by adding at the
end the following:
‘‘(e) TRANSITION.—In applying the amendment made by subsection (a) to children born before November 14, 1986, any reference
in the matter inserted by such amendment to ‘five years, at least
two of which’ is deemed a reference to ‘10 years, at least 5 of
which’.’’.
(3) Section 351(a) (8 U.S.C. 1483(a)), as amended by section
105(a)(2)(A) of INTCA, is amended by striking the comma after
‘‘nationality’’.
(4) Section 207(2) of INTCA is amended by inserting a
comma after ‘‘specified’’.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–722

(5) Section 101(a)(43) (8 U.S.C. 1101(a)(43)) is amended
in subparagraph (K)(ii), by striking the comma after ‘‘1588’’.
(6) Section 273(b) (8 U.S.C. 1323(b)), as amended by section
209(a) of INTCA, is amended by striking ‘‘remain’’ and inserting
‘‘remains’’.
(7) Section 209(a)(1) of INTCA is amended by striking
‘‘$3000’’ and inserting ‘‘$3,000’’.
(8) Section 209(b) of INTCA is amended by striking ‘‘subsection’’ and inserting ‘‘section’’.
(9) Section 219(cc) of INTCA is amended by striking ‘‘
‘year 1993 the first place it appears’ ’’ and inserting ‘‘ ‘year
1993’ the first place it appears’’.
(10) Section 219(ee) of INTCA is amended by adding at
the end the following:
‘‘(3) The amendments made by this subsection shall take effect
on the date of the enactment of this Act.’’.
(11) Paragraphs (4) and (6) of section 286(r) (8 U.S.C.
1356(r)) are amended by inserting ‘‘the’’ before ‘‘Fund’’ each
place it appears.
(12) Section 221 of INTCA is amended—
(A) by striking each semicolon and inserting a comma,
(B) by striking ‘‘disasters.’’ and inserting ‘‘disasters,’’;
and
(C) by striking ‘‘The official’’ and inserting ‘‘the official’’.
(13) Section 242A (8 U.S.C. 1252a), as added by section
224(a) of INTCA and before redesignation as section 238 by
section 308(b)(5) of this division, is amended by redesignating
subsection (d) as subsection (c).
(14) Except as otherwise provided in this subsection, the
amendments made by this subsection shall take effect as if
included in the enactment of INTCA.
(c) AMENDMENTS RELATING TO PUBLIC LAW 104–132
(ANTITERRORISM AND EFFECTIVE DEATH PENALTY ACT OF 1996).—
(1) Section 219 (8 U.S.C. 1189), as added by section 302(a)
of Antiterrorism and Effective Death Penalty Act of 1996 (Public
Law 104–132) (in this subsection referred to as ‘‘AEDPA’’),
is amended by striking the heading and all that follows through
‘‘(a)’’ and inserting the following:
‘‘DESIGNATION

8 USC 1323.
8 USC 1323 note.
8 USC 1255a
note.
8 USC 1161 note.

8 USC 1101 note.

8 USC 1101 note.

OF FOREIGN TERRORIST ORGANIZATIONS

‘‘SEC. 219. (a)’’.
(2) Section 302(b) of AEDPA is amended by striking ‘‘,
relating to terrorism,’’.
(3) Section 106(a) (8 U.S.C. 1105a(a)), as amended by sections 401(e) and 440(a) of AEDPA, is amended—
(A) by striking ‘‘and’’ at the end of paragraph (8);
(B) by striking the period at the end of paragraph
(9) and inserting ‘‘; and’’; and
(C) in paragraph (10), by striking ‘‘Any’’ and inserting
‘‘any’’.
(4) Section 440(a) of the AEDPA is amended by striking
‘‘Section 106 of the Immigration and Nationality Act (8 U.S.C.
1105a(a)(10)) is amended to read as follows:’’ and inserting
‘‘Section 106(a) of the Immigration and Nationality Act (8
U.S.C. 1105a(a)) is amended by adding at the end the following:’’
(5) Section 440(g)(1)(A) of AEDPA is amended—

8 USC 1252a.

110 STAT. 3009–723

8 USC 1189 note.

8 USC 1255a
note.

PUBLIC LAW 104–208—SEPT. 30, 1996

(A) by striking ‘‘of this title’’; and
(B) by striking the period after ‘‘241(a)(2)(A)(i)’’.
(6) Section 440(g) of AEDPA is amended by striking paragraph (2).
(7) The amendments made by this subsection shall take
effect as if included in the enactment of subtitle A of title
IV of AEPDA.
(d) STRIKING REFERENCES TO SECTION 210A.—
(1)(A) Section 201(b)(1)(C) (8 U.S.C. 1151(b)(1)(C)) is
amended by striking ‘‘, 210A,’’.
(B) Section 274B(a)(3)(B) (8 U.S.C. 1324b(a)(3)(B)) is
amended by striking ‘‘, 210A(a),’’.
(C) Section 241(a)(1) (8 U.S.C. 1251(a)(1)), before redesignation by section 305(a)(2) of this division, is amended by striking
subparagraph (F).
(2) Sections 204(c)(1)(D)(i) and 204(j)(4) of Immigration
Reform and Control Act of 1986 are each amended by striking
‘‘, 210A,’’.
(e) MISCELLANEOUS CHANGES IN THE IMMIGRATION AND
NATIONALITY ACT.—
(1) Before being amended by section 308(a)(2) of this division, the item in the table of contents relating to section 242A
is amended to read as follows:
‘‘Sec. 242A. Expedited deportation of aliens convicted of committing aggravated felonies.’’.

(2) Section 101(c)(1) (8 U.S.C. 1101(c)(1)) is amended by
striking ‘‘, 321, and 322’’ and inserting ‘‘and 321’’.
(3) Section 212(d)(11) (8 U.S.C. 1182(d)(11)) is amended
by inserting a comma after ‘‘(4) thereof)’’.
(4) Pursuant to section 6(b) of Public Law 103–272 (108
Stat. 1378)—
(A) section 214(f)(1) (8 U.S.C. 1184(f)(1)) is amended
by striking ‘‘section 101(3) of the Federal Aviation Act
of 1958’’ and inserting ‘‘section 40102(a)(2) of title 49,
United States Code’’; and
(B) section 258(b)(2) (8 U.S.C. 1288(b)(2)) is amended
by striking ‘‘section 105 or 106 of the Hazardous Materials
Transportation Act (49 U.S.C. App. 1804, 1805)’’ and inserting ‘‘section 5103(b), 5104, 5106, 5107, or 5110 of title
49, United States Code’’.
(5) Section 286(h)(1)(A) (8 U.S.C. 1356(h)(1)(A)) is amended
by inserting a period after ‘‘expended’’.
(6) Section 286(h)(2)(A) (8 U.S.C. 1356(h)(2)(A)) is amended—
(A) by striking ‘‘and’’ at the end of clause (iv);
(B) by moving clauses (v) and (vi) 2 ems to the left;
(C) by striking ‘‘; and’’ in clauses (v) and (vi) and
inserting ‘‘and for’’;
(D) by striking the colons in clauses (v) and (vi); and
(E) by striking the period at the end of clause (v)
and inserting ‘‘; and’’.
(7) Section 412(b) (8 U.S.C. 1522(b)) is amended by striking
the comma after ‘‘is authorized’’ in paragraph (3) and after
‘‘The Secretary’’ in paragraph (4).

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–724

(f) MISCELLANEOUS CHANGE IN THE IMMIGRATION ACT OF
1990.—Section 161(c)(3) of the Immigration Act of 1990 is amended
by striking ‘‘an an’’ and inserting ‘‘of an’’.
(g) MISCELLANEOUS CHANGES IN OTHER ACTS.—
(1) Section 506(a) of the Intelligence Authorization Act,
Fiscal Year 1990 (Public Law 101–193) is amended by striking
‘‘this section’’ and inserting ‘‘such section’’.
(2) Section 140 of the Foreign Relations Authorization Act,
Fiscal Years 1994 and 1995, as amended by section 505(2)
of Public Law 103–317, is amended—
(A) by moving the indentation of subsections (f) and
(g) 2 ems to the left; and
(B) in subsection (g), by striking ‘‘(g)’’ and all that
follows through ‘‘shall’’ and inserting ‘‘(g) Subsections (d)
and (e) shall’’.

DIVISION D—SMALL BUSINESS
PROGRAMS IMPROVEMENT ACT
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE.—This division may be cited as the ‘‘Small
Business Programs Improvement Act of 1996’’.
(b) TABLE OF CONTENTS.—
Sec. 1. Short title; table of contents.
Sec. 2. Administrator defined.
Sec. 3. Effective date.

TITLE I—AMENDMENTS TO SMALL BUSINESS ACT
Sec. 101. References.
Sec. 102. Risk management database.
Sec. 103. Section 7(a) loan program.
Sec. 104. Disaster loans.
Sec. 105. Microloan demonstration program.
Sec. 106. Small business development center program.
Sec. 107. Miscellaneous authorities to provide loans and other financial
assistance.
Sec. 108. Small business competitiveness demonstration program.
Sec. 109. Amendment to Small Business Guaranteed Credit Enhancement
Act of 1993.
Sec. 110. STTR program extension.
Sec. 111. Level of participation for export working capital loans.

TITLE II—AMENDMENTS TO SMALL BUSINESS
INVESTMENT ACT
Sec. 201. References.
Sec. 202. Modifications to development company debenture program.
Sec. 203. Required actions upon default.
Sec. 204. Loan liquidation pilot program.

8 USC 1101 note.

8 USC 1430 note.

8 USC 1182 note.

Small Business
Programs
Improvement Act
of 1996.
15 USC 631 note.

110 STAT. 3009–725

PUBLIC LAW 104–208—SEPT. 30, 1996

Sec. 205. Registration of certificates.
Sec. 206. Preferred surety bond guarantee program.
Sec. 207. Sense of the Congress.
Sec. 208. Small business investment company improvements.
15 USC 631 note.

SEC. 2. ADMINISTRATOR DEFINED.

For purposes of this Act, the term ‘‘Administrator’’ means the
Administrator of the Small Business Administration.
15 USC 633 note.

SEC. 3. EFFECTIVE DATE.

Except as otherwise expressly provided, this Act and the
amendments made by this Act shall take effect on October 1,
1996.

TITLE I—AMENDMENTS TO SMALL
BUSINESS ACT
SEC. 101. REFERENCES.

Except as otherwise expressly provided, whenever in this title
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
Small Business Act (15 U.S.C. 631 et seq.).
SEC. 102. RISK MANAGEMENT DATABASE.

Section 4(b) (15 U.S.C. 633) is amended by inserting after
paragraph (2) the following:
‘‘(3) RISK MANAGEMENT DATABASE.—
‘‘(A) ESTABLISHMENT.—The Administration shall establish, within the management system for the loan programs
authorized by subsections (a) and (b) of section 7 of this
Act and title V of the Small Business Investment Act
of 1958, a management information system that will generate a database capable of providing timely and accurate
information in order to identify loan underwriting, collections, recovery, and liquidation problems.
‘‘(B) INFORMATION TO BE MAINTAINED.—In addition to
such other information as the Administration considers
appropriate, the database established under subparagraph
(A) shall, with respect to each loan program described
in subparagraph (A), include information relating to—
‘‘(i) the identity of the institution making the
guaranteed loan or issuing the debenture;
‘‘(ii) the identity of the borrower;
‘‘(iii) the total dollar amount of the loan or debenture;
‘‘(iv) the total dollar amount of government exposure in each loan;
‘‘(v) the district of the Administration in which
the borrower has its principal office;
‘‘(vi) the principal line of business of the borrower,
as identified by Standard Industrial Classification Code
(or any successor to that system);
‘‘(vii) the delinquency rate for each program
(including number of instances and days overdue);

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–726

‘‘(viii) the number and amount of repurchases,
losses, and recoveries in each program;
‘‘(ix) the number of deferrals or forbearances in
each program (including days and number of
instances);
‘‘(x) comparisons on the basis of loan program,
lender, Administration district and region, for all the
data elements maintained; and
‘‘(xi) underwriting characteristics of each loan that
has entered into default, including term, amount and
type of collateral, loan-to-value and other actual and
projected ratios, line of business, credit history, and
type of loan.
‘‘(C) DEADLINE FOR OPERATIONAL CAPABILITY.—The
database established under subparagraph (A) shall—
‘‘(i) be operational not later than June 30, 1997;
and
‘‘(ii) capture data beginning on the first day of
the second quarter of fiscal year 1997 beginning after
such date and thereafter.’’.
SEC. 103. SECTION 7(a) LOAN PROGRAM.

(a) SERVICING AND LIQUIDATION OF LOANS BY PREFERRED LENDERS.—Section 7(a)(2)(C)(ii)(II) (15 U.S.C. 636(a)(2)(C)(ii)(II)) is
amended to read as follows:
‘‘(II) complete authority to service and liquidate such loans without obtaining the prior specific approval of the Administration for routine
servicing and liquidation activities, but shall not
take any actions creating an actual or apparent
conflict of interest.’’.
(b) CERTIFIED LENDERS PROGRAM.—Section 7(a)(19) (15 U.S.C.
636(a)(19)) is amended by adding at the end the following new
subparagraph:
‘‘(C) AUTHORITY TO LIQUIDATE LOANS.—
‘‘(i) IN GENERAL.—The Administrator may permit
lenders participating in the Certified Lenders Program
to liquidate loans made with a guarantee from the
Administration pursuant to a liquidation plan
approved by the Administrator.
‘‘(ii) Automatic approval.—If the Administrator
does not approve or deny a request for approval of
a liquidation plan within 10 business days of the date
on which the request is made (or with respect to any
routine liquidation activity under such a plan, within
5 business days) such request shall be deemed to be
approved.’’.
(c) LIMITATION ON CONDUCTING PILOT PROJECTS.—Section 7(a)
(15 U.S.C. 636(a)) is amended by adding at the end the following
new paragraph:
‘‘(25) LIMITATION ON CONDUCTING PILOT PROJECTS.—
‘‘(A) IN GENERAL.—Not more than 10 percent of the
total number of loans guaranteed in any fiscal year under
this subsection may be awarded as part of a pilot program
which is commenced by the Administrator on or after October 1, 1996.

110 STAT. 3009–727

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(B) PILOT PROGRAM DEFINED.—In this paragraph, the
term ‘pilot program’ means any lending program initiative,
project, innovation, or other activity not specifically authorized by law.
‘‘(C) LOW DOCUMENTATION LOAN PROGRAM.—The
Administrator may carry out the low documentation loan
program for loans of $100,000 or less only through lenders
with significant experience in making small business loans.
Not later than 90 days after the date of enactment of
this subsection, the Administrator shall promulgate regulations defining the experience necessary for participation
as a lender in the low documentation loan program.’’.
(d) CALCULATION OF SUBSIDY RATE.—Section 7(a) (15 U.S.C.
636(a)) is amended by adding at the end the following new paragraph:
‘‘(26) CALCULATION OF SUBSIDY RATE.—All fees, interest,
and profits received and retained by the Administration under
this subsection shall be included in the calculations made by
the Director of the Office of Management and Budget to offset
the cost (as that term is defined in section 502 of the Federal
Credit Reform Act of 1990) to the Administration of purchasing
and guaranteeing loans under this Act.’’.
(e) SALE OF UNGUARANTEED PORTIONS OF SBA LOANS.—Section
5(f)(3) (15 U.S.C. 634(f)(3)) is amended by adding at the end the
following: ‘‘Beginning on March 31, 1997, the sale of the
unguaranteed portion of any loan made under section 7(a) shall
not be permitted until a final regulation that applies uniformly
to both depository institutions and other lenders is promulgated
by the Administration setting forth the terms and conditions under
which such sales can be permitted, including maintenance of appropriate reserve requirements and other safeguards to protect the
safety and soundness of the program.’’.
(f) CONDITIONS ON PURCHASE OF LOANS.—Section 7(a)(4) (15
U.S.C. 636(a)(4)) is amended—
(1) by striking ‘‘(4) Notwithstanding’’ and inserting the
following:
‘‘(4) INTEREST RATES AND FEES.—
‘‘(A) INTEREST RATES.—Notwithstanding’’; and
(2) by adding at the end the following new subparagraph:
‘‘(B) PAYMENT OF ACCRUED INTEREST.—
‘‘(i) IN GENERAL.—Any bank or other lending
institution making a claim for payment on the guaranteed portion of a loan made under this subsection
shall be paid the accrued interest due on the loan
from the earliest date of default to the date of payment
of the claim at a rate not to exceed the rate of interest
on the loan on the date of default, minus one percent.
‘‘(ii) LOANS SOLD ON SECONDARY MARKET.—If a loan
described in clause (i) is sold on the secondary market,
the amount of interest paid to a bank or other lending
institution described in that clause from the earliest
date of default to the date of payment of the claim
shall be no more than the agreed upon rate, minus
one percent.’’.
(g) PLAN FOR TRANSFER OF LOAN SERVICING FUNCTIONS TO
CENTRALIZED CENTERS.—

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–728

(1) IMPLEMENTATION PLAN REQUIRED.—The Administrator
shall submit a detailed plan for completing the consolidation,
in one or more centralized centers, of the performance of the
various functions relating to the servicing of loans directly
made or guaranteed by the Administration pursuant to the
Small Business Act, addressing the matters described in paragraph (2) by the deadline specified in paragraph (3).
(2) CONTENTS OF PLAN.—In addition to such other matters
as the Administrator may deem appropriate, the plan required
by paragraph (1) shall include—
(A) the proposed number and location of such centralized loan servicing centers;
(B) the proposed workload (identified by type and numbers of loans and their geographic origin by the Small
Business Administration district office) and staffing of each
such center;
(C) a detailed, time-phased plan for the transfer of
the identified loan servicing functions to each proposed
center; and
(D) any identified impediments to the timely execution
of the proposed plan (including adequacy of available financial resources, availability of needed personnel, facilities,
and related equipment) and the recommendations of the
Administrator for addressing such impediments.
(3) DEADLINE FOR SUBMISSION.—Not later than February
28, 1997, the plan required by paragraph (1) shall be submitted
to the Committees on Small Business of the House of Representatives and Senate.
(h) PREFERRED LENDER STANDARD REVIEW PROGRAM.—Not
later than 90 days after the date of enactment of this Act, the
Administrator shall commence a standard review program for the
Preferred Lender Program established by section 5(b)(7) of the
Small Business Act (15 U.S.C. 634(b)(7)), which shall include annual
or more frequent assessments of the participation of the lender
in the program, including defaults, loans, and recoveries of loans
made by that lender under the authority of this section. The
Administrator shall require such standard review for each new
entrant to the Preferred Lender Program.
(i) INDEPENDENT STUDY OF LOAN PROGRAMS.—
(1) STUDY REQUIRED.—The Administrator shall contract
with one or more private sector parties to conduct a comprehensive assessment of the performance of the loan programs
authorized by section 7(a) of the Small Business Act (15 U.S.C.
636(a)) and title V of the Small Business Investment Act of
1958 (15 U.S.C. 661) addressing the matters described in paragraph (2) and resulting in a report to the Congress pursuant
to paragraph (5).
(2) MATTERS TO BE ASSESSED.—In addition to such other
matters as the Administrator considers appropriate, the assessment required by paragraph (1) shall address, with respect
to each loan program described in paragraph (1) for each of
the fiscal years described in paragraph (3)—
(A) the number and frequency of deferrals and defaults;
(B) default rates;
(C) comparative loss rates, by—

15 USC 634 note.

110 STAT. 3009–729

PUBLIC LAW 104–208—SEPT. 30, 1996

(i) type of lender (separately addressing preferred
lenders, certified lenders, and general participation
lenders);
(ii) term of the loan;
(iii) dollar value of the loan at disbursement; and
(iv) underwriting characteristics of each loan that
has entered into default, including term, amount and
type of collateral, loan-to-value and other actual and
projected ratios, line of business, credit history, and
type of loan; and
(D) the economic models used by the Office of Management and Budget to calculate the credit subsidy rate
applicable to the loan programs.
(3) PERIOD OF ASSESSMENT.—The assessments undertaken
pursuant to paragraph (2) shall address data for the period
beginning with fiscal year 1986 of each loan program described
in paragraph (1).
(4) ACCESS TO INFORMATION.—The Administrator shall provide to the contractor access to any information collected by
or available to the Administration with regard to the loan
programs being assessed. The contactor shall preserve the confidentiality of any information for which confidentiality is protected by law or properly asserted by the person submitting
such information.
(5) CONTRACT FUNDING.—The Administrator shall fund the
cost of the contract from the amounts appropriated for the
salaries and expenses of the Administration for fiscal year
1997.
(6) REPORT TO THE CONGRESS.—
(A) CONTENTS.—The contractor shall prepare a report
of—
(i) its analyses of the matters to be assessed pursuant to paragraph (2); and
(ii) its independent recommendations for improving
program performance with respect to each loan program, regarding—
(I) improving the timely collection and subsequent management by the Administration of data
to measure the performance of each loan program
described in paragraph (1); and
(II) reducing loss rates for and improving the
performance of each such loan program.
(B) SUBMISSION TO THE CONGRESS.—Not later than
June 30, 1997, the Administrator shall submit the report
prepared under subparagraph (A) to the Committees on
Small Business of the House of Representatives and the
Senate. The Administrator shall append his comments,
and those of the Office of Management and Budget, if
any, to the report.
SEC. 104. DISASTER LOANS.
15 USC 636 note.

(a) PRIVATE SECTOR LOAN SERVICING DEMONSTRATION PROGRAM.—

(1) IN GENERAL.—
(A) DEMONSTRATION PROGRAM REQUIRED.—Notwithstanding any other provision of law, the Administration

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–730

shall conduct a demonstration program, within the parameters described in paragraph (2), to evaluate the comparative costs and benefits of having the Administration’s portfolio of disaster loans serviced under contract rather than
directly by employees of the Administration. All costs of
the demonstration program shall be paid from amounts
made available for the Salaries and Expenses Account of
the Administration.
(B) INITIATION DATE.—Not later than 90 days after
the date of enactment of this Act, the Administration shall
issue a request for proposals for the program parameters
described in paragraph (2).
(2) DEMONSTRATION PROGRAM PARAMETERS.—
(A) LOAN SAMPLE.—The sample of loans for the demonstration program shall be randomly drawn from the
Administration’s portfolio of loans made pursuant to section
7(b) of the Small Business Act and shall include a representative group of not less than 30 percent of all loans
for residential properties, including 30 percent of all loans
made during the demonstration program after the date
of enactment of this Act, which loans shall be selected
by the Administration on the basis of geographic distribution and such other factors as the Administration determines to be appropriate.
(B) CONTRACT AND OPTIONS.—The Administration
shall solicit and competitively award one or more contracts
to service the loans included in the sample of loans
described in subparagraph (A) for a term of not less than
one year, with 3 one-year contract renewal options, each
of which shall be exercised by the Administration unless
the Administration terminates the contractor or contractors
for good cause.
(3) TERM OF DEMONSTRATION PROGRAM.—The demonstration program shall commence not later than October 1, 1997.
(4) REPORTS.—
(A) INTERIM REPORTS.—Not later than 120 days before
the expiration of the initial 4-year contract performance
period, the Administrator shall submit to the Committees
on Small Business of the House of Representatives and
the Senate an interim report on the conduct of the demonstration program. The contractor shall be afforded a
reasonable opportunity to attach comments to each such
report.
(B) FINAL REPORT.—Not later than 120 days after the
termination of the demonstration program, the Administrator shall submit to the Committees on Small Business
of the House of Representatives and the Senate a final
report on the performance of the demonstration program,
together with the recommendations of the Administrator
for continuation, termination, or modification of the demonstration program.
(b) DEFINITION OF DISASTER.—
(1) IN GENERAL.—Section 3(k) (15 U.S.C. 632(k)) is amended
by inserting ‘‘commercial fishery failures or fishery resource
disasters (as determined by the Secretary of Commerce under
section 308(b) of the Interjurisdictional Fisheries Act of 1986),’’
after ‘‘tidal waves,’’.

110 STAT. 3009–731
15 USC 632 note.

PUBLIC LAW 104–208—SEPT. 30, 1996

(2) EFFECTIVE DATE.—The amendment made by paragraph
(1) shall be effective with respect to any disaster occurring
on or after March 1, 1994.
SEC. 105. MICROLOAN DEMONSTRATION PROGRAM.

Section 7(m)(7)(B) (15 U.S.C. 636(m)(4)) is amended by adding
at the end the following: ‘‘If, however, at the beginning of the
fourth quarter of a fiscal year the Administration determines that
a portion of appropriated microloan funds are unlikely to be
awarded during that year, the Administration may make additional
funds available to a State in excess of 125 percent of the pro
rata share of that State.’’.
SEC. 106. SMALL BUSINESS DEVELOPMENT CENTER PROGRAM.

(a) ASSOCIATE ADMINISTRATOR FOR SMALL BUSINESS DEVELOPCENTERS.—
(1) DUTIES.—Section 21(h) (15 U.S.C. 648(h)) is amended
to read as follows:
‘‘(h) ASSOCIATE ADMINISTRATOR FOR SMALL BUSINESS DEVELOPMENT CENTERS.—
‘‘(1) APPOINTMENT AND COMPENSATION.—The Administrator
shall appoint an Associate Administrator for Small Business
Development Centers who shall report to an official who is
not more than one level below the Office of the Administrator
and who shall serve without regard to the provisions of title
5 governing appointments in the competitive service, and without regard to chapter 51, and subchapter III of chapter 53
of such title relating to classification and General Schedule
pay rates, but at a rate not less than the rate of GS–17
of the General Schedule.
‘‘(2) DUTIES.—
‘‘(A) IN GENERAL.—The sole responsibility of the Associate Administrator for Small Business Development Centers
shall be to administer the small business development center program. Duties of the position shall include recommending the annual program budget, reviewing the
annual budgets submitted by each applicant, establishing
appropriate funding levels therefore, selecting applicants
to participate in this program, implementing the provisions
of this section, maintaining a clearinghouse to provide for
the dissemination and exchange of information between
small business development centers and conducting audits
of recipients of grants under this section.
‘‘(B) CONSULTATION REQUIREMENTS.—In carrying out
the duties described in this subsection, the Associate
Administrator shall confer with and seek the advice of
the Board established by subsection (i) and Administration
officials in areas served by the small business development
centers; however, the Associate Administrator shall be
responsible for the management and administration of the
program and shall not be subject to the approval or concurrence of such Administration officials.’’.
(2) REFERENCES TO ASSOCIATE ADMINISTRATOR.—Section 21
(15 U.S.C. 648) is amended—
(A) in subsection (c)(7), by striking ‘‘Deputy Associate
Administrator of the Small Business Development Center
program’’ and inserting ‘‘Associate Administrator for Small
Business Development Centers’’; and
MENT

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–732

(B) in subsection (i)(2), by striking ‘‘Deputy Associate
Administrator for Management Assistance’’ and inserting
‘‘Associate Administrator for Small Business Development
Centers’’.
(b) EXTENSION OR RENEWAL OF COOPERATIVE AGREEMENTS.—
Section 21(k)(3) (15 U.S.C. 648(k)(3)) is amended to read as follows:
‘‘(3) EXTENSION OR RENEWAL OF COOPERATIVE AGREEMENTS.—
‘‘(A) IN GENERAL.—In extending or renewing a cooperative agreement of a small business development center,
the Administration shall consider the results of the examination and certification program conducted pursuant to
paragraphs (1) and (2).
‘‘(B) CERTIFICATION REQUIREMENT.—After September
30, 2000, the Administration may not renew or extend
any cooperative agreement with a small business development center unless the center has been approved under
the certification program conducted pursuant to this subsection, except that the Associate Administrator for Small
Business Development Centers may waive such certification requirement, in the discretion of the Associate
Administrator, upon a showing that the center is making
a good faith effort to obtain certification.’’.
(c) TECHNICAL CORRECTION.—Section 21(l) (15 U.S.C. 648(l))
is amended to read as follows:
‘‘(l) CONTRACT AUTHORITY.—The authority to enter into contracts shall be in effect for each fiscal year only to the extent
and in the amounts as are provided in advance in appropriations
Acts. After the administration has entered a contract, either as
a grant or a cooperative agreement, with any applicant under
this section, it shall not suspend, terminate, or fail to renew or
extend any such contract unless the Administration provides the
applicant with written notification setting forth the reasons therefore and affording the applicant an opportunity for a hearing,
appeal, or other administrative proceeding under the provisions
of chapter 5 of title 5, United States Code.’’.
SEC. 107. MISCELLANEOUS AUTHORITIES TO PROVIDE LOANS AND
OTHER FINANCIAL ASSISTANCE.

(a) FUNDING LIMITATION; SEMINARS.—Section 7(d) (15 U.S.C.
636(d)) is amended—
(1) by striking ‘‘(d)(1)’’ and inserting ‘‘(d)’’; and
(2) by striking paragraph (2).
(b) TRADE ADJUSTMENT LOANS.—Section 7(e) (15 U.S.C. 636(e))
is amended to read as follows:
‘‘(e) [RESERVED].’’.
(c) WAIVER OF CREDIT ELSEWHERE TEST FOR COLLEGES AND
UNIVERSITIES.—Section 7(f) (15 U.S.C. 636(f)) is amended to read
as follows:
‘‘(f) [RESERVED].’’.
(d) LOANS TO SMALL BUSINESS CONCERNS FOR SOLAR ENERGY
AND ENERGY CONSERVATION MEASURES.—Section 7(l) (15 U.S.C.
636(l)) is amended to read as follows:
‘‘(l) [RESERVED].’’.
SEC. 108. SMALL BUSINESS COMPETITIVENESS DEMONSTRATION PROGRAM.

(a) EXTENSION OF DEMONSTRATION PROGRAM.—

110 STAT. 3009–733

PUBLIC LAW 104–208—SEPT. 30, 1996

(1) IN GENERAL.—Section 711(c) of the Small Business
Competitiveness Demonstration Program Act of 1988 (15 U.S.C.
644 note; 102 Stat. 3890) is amended by striking ‘‘September
30, 1996’’ and inserting ‘‘September 30, 1997’’.
(2) REPEAL.—Section 717(f) of the Small Business Competitiveness Demonstration Program Act of 1988 (15 U.S.C. 644
note) is repealed.
(b) REPORTING OF SUBCONTRACT PARTICIPATION IN CONTRACTS
FOR
ARCHITECTURAL AND ENGINEERING SERVICES.—Section
714(b)(5) of the Small Business Competitiveness Demonstration
Program Act of 1988 (15 U.S.C. 644 note; 102 Stat. 3892) is amended
to read as follows:
‘‘(5) DURATION.—The system described in subsection (a)
shall be established not later than October 1, 1996 (or as
soon as practicable thereafter on the first day of a subsequent
quarter of fiscal year 1997), and shall terminate on September
30, 1997.’’.
(c) REPORTS TO THE CONGRESS.—
(1) IN GENERAL.—Section 716 of the Small Business
Competitiveness Demonstration Program Act of 1988 (15 U.S.C.
644 note; 102 Stat. 3893) is amended—
(A) in subsection (a), by striking ‘‘fiscal year 1991 and
1995’’ and inserting ‘‘each of fiscal years 1991 through
1996’’;
(B) in subsection (b), by striking ‘‘results’’ and inserting
‘‘cumulative results’’; and
(C) in subsection (c), by striking ‘‘1996’’ and inserting
‘‘1997’’.
(2) CUMULATIVE REPORT THROUGH FISCAL YEAR 1995.—A
cumulative report of the results of the Small Business Competitiveness Demonstration Program for fiscal years 1991 through
1995 shall be submitted not later than February 28, 1997
pursuant to section 716(a) of the Small Business Competitiveness Demonstration Program Act of 1988 (15 U.S.C. 644 note;
102 Stat. 3893), as amended by paragraph (1) of this subsection.
SEC. 109. AMENDMENT TO SMALL BUSINESS GUARANTEED CREDIT
ENHANCEMENT ACT OF 1993.

(a) IN GENERAL.—Section 7 of the Small Business Guaranteed
Credit Enhancement Act of 1993 (Public Law 103–81; 15 U.S.C.
634 note) is repealed effective September 29, 1996.
(b) CLERICAL AMENDMENT.—The table of contents for the Small
Business Guaranteed Credit Enhancement Act of 1993 (Public Law
103–81; 15 U.S.C. 631 note) is amended by striking the item relating
to section 7.
SEC. 110. STTR PROGRAM EXTENSION.

Section 9(n)(1)(C) (15 U.S.C. 638(n)(1)(C)) is amended by striking ‘‘fiscal year 1996’’ and inserting ‘‘fiscal years 1996 and 1997’’.
SEC. 111. LEVEL OF PARTICIPATION FOR EXPORT WORKING CAPITAL
LOANS.

Section 7(A)(2) (15 U.S.C. 636(A)(2)) is amended by adding
at the end the following:
‘‘(D) PARTICIPATION UNDER EXPORT WORKING CAPITAL
PROGRAM.—Notwithstanding subparagraph (A), in an
agreement to participate in a loan on a deferred basis
under the Export Working Capital Program established

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–734

pursuant to paragraph (14)(A), such participation by the
Administration shall not exceed 90 percent.’’.

TITLE II—AMENDMENTS TO SMALL
BUSINESS INVESTMENT ACT
SEC. 201. REFERENCES.

Except as otherwise expressly provided, whenever in this title
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
Small Business Investment Act of 1958 (15 U.S.C. 661 et seq.).
SEC. 202. MODIFICATIONS TO DEVELOPMENT COMPANY DEBENTURE
PROGRAM.

(a) DECREASED LOAN TO VALUE RATIOS.—Section 502(3) (15
U.S.C. 696(3)) is amended to read as follows:
‘‘(3) CRITERIA FOR ASSISTANCE.—
‘‘(A) IN GENERAL.—Any development company assisted
under this section or section 503 of this title must meet
the criteria established by the Administration, including
the extent of participation to be required or amount of
paid-in capital to be used in each instance as is determined
to be reasonable by the Administration.
‘‘(B) COMMUNITY INJECTION FUNDS.—
‘‘(i) SOURCES OF FUNDS.—Community injection
funds may be derived, in whole or in part, from—
‘‘(I) State or local governments;
‘‘(II) banks or other financial institutions;
‘‘(III) foundations or other not-for-profit
institutions; or
‘‘(IV) the small business concern (or its owners,
stockholders, or affiliates) receiving assistance
through a body authorized by this title.
‘‘(ii) FUNDING FROM INSTITUTIONS.—Not less than
50 percent of the total cost of any project financed
pursuant to clauses (i), (ii), or (iii) of subparagraph
(C) shall come from the institutions described in subclauses (I), (II), and (III) of clause (i).
‘‘(C) FUNDING FROM A SMALL BUSINESS CONCERN.—The
small business concern (or its owners, stockholders, or affiliates) receiving assistance through a body authorized by
this title shall provide—
‘‘(i) at least 15 percent of the total cost of the
project financed, if the small business concern has
been in operation for a period of 2 years or less;
‘‘(ii) at least 15 percent of the total cost of the
project financed if the project involves the construction
of a limited or single purpose building or structure;
‘‘(iii) at least 20 percent of the total cost of the
project financed if the project involves both of the
conditions set forth in clauses (i) and (ii); or
‘‘(iv) at least 10 percent of the total cost of the
project financed, in all other circumstances, at the
discretion of the development company.’’.

110 STAT. 3009–735

PUBLIC LAW 104–208—SEPT. 30, 1996

(b) GUARANTEE FEE FOR DEVELOPMENT COMPANY DEBENTURES.—Section 503(b)(7)(A) (15 U.S.C. 697(b)(7)(A)) is amended

15 USC 697.

by striking ‘‘equal to 0.125 percent’’ and all that follows before
the semicolon and inserting the following: ‘‘equal to the lesser
of—
‘‘(i) 0.9375 percent per year of the outstanding
balance of the loan; or
‘‘(ii) such percentage per year of the outstanding
balance of the loan as the Administrator may determine to be necessary to reduce the cost (as that term
is defined in section 502 of the Federal Credit Reform
Act of 1990) to the Administration of purchasing and
guaranteeing debentures under this Act to an amount
that, taking into consideration any available appropriated funds, would permit the Administration to purchase or guarantee $2,000,000,000 of debentures in
fiscal year 1997’’.
(c) FEES TO OFFSET SUBSIDY COST.—Section 503(d) (15 U.S.C.
697(d)) is amended to read as follows:
‘‘(d) CHARGES FOR ADMINISTRATION EXPENSES.—
‘‘(1) LEVEL OF CHARGES.—The Administration may impose
an additional charge for administrative expenses with respect
to each debenture for which payment of principal and interest
is guaranteed under subsection (a).
‘‘(2) PARTICIPATION FEE.—The Administration shall collect
a one-time fee in an amount equal to 50 basis points on the
total participation in any project of any institution described
in subclause (I), (II), or (III) of section 502(3)(B)(i). Such fee
shall be imposed only when the participation of the institution
will occupy a senior credit position to that of the development
company. All proceeds of the fee shall be used to offset the
cost (as that term is defined in section 502 of the Credit
Reform Act of 1990) to the Administration of making guarantees
under subsection (a).
‘‘(3) DEVELOPMENT COMPANY FEE.—The Administration
shall collect annually from each development company a fee
of 0.125 percent of the outstanding principal balance of any
guaranteed debenture authorized by the Administration after
September 30, 1996. Such fee shall be derived from the servicing fees collected by the development company pursuant to
regulation, and shall not be derived from any additional fees
imposed on small business concerns. All proceeds of the fee
shall be used to offset the cost (as that term is defined in
section 502 of the Credit Reform Act of 1990) to the Administration of making guarantees under subsection (a).’’.
(d) EFFECTIVE DATE.—Section 503 (15 U.S.C. 697) is amended
by adding at the end the following new subsection:
‘‘(f) EFFECTIVE DATE.—The fees authorized by subsections (b)
and (c) shall apply to financings approved by the Administration
on or after October 1, 1996, but shall not apply to financings
approved by the Administration on or after October 1, 1997.’’.
(e) CALCULATION OF SUBSIDY RATE.—Section 503 (15 U.S.C.
697a) is amended by adding at the end the following new subsection:
‘‘(g) CALCULATION OF SUBSIDY RATE.—All fees, interest, and
profits received and retained by the Administration under this
section shall be included in the calculations made by the Director
of the Office of Management and Budget to offset the cost (as

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–736

that term is defined in section 502 of the Federal Credit Reform
Act of 1990) to the Administration of purchasing and guaranteeing
debentures under this Act.’’.
SEC. 203. REQUIRED ACTIONS UPON DEFAULT.

Section 503 (15 U.S.C. 697) is amended by adding at the end
the following new subsection:
‘‘(h) REQUIRED ACTIONS UPON DEFAULT.—
‘‘(1) INITIAL ACTIONS.—Not later than the 45th day after
the date on which a payment on a loan funded through a
debenture guaranteed under this section is due and not
received, the Administration shall—
‘‘(A) take all necessary steps to bring such a loan
current; or
‘‘(B) implement a formal written deferral agreement.
‘‘(2) PURCHASE OR ACCELERATION OF DEBENTURE.—Not later
than the 65th day after the date on which a payment on
a loan described in paragraph (1) is due and not received,
and absent a formal written deferral agreement, the administration shall take all necessary steps to purchase or accelerate
the debenture.
‘‘(3) PREPAYMENT PENALTIES.—With respect to the portion
of any project derived from funds set forth in section 502(3),
the Administration—
‘‘(A) shall negotiate the elimination of any prepayment
penalties or late fees on defaulted loans made prior to
September 30, 1996;
‘‘(B) shall not pay any prepayment penalty or late
fee on the default based purchase of loans issued after
September 30, 1996; and
‘‘(C) for any project financed after September 30, 1996,
shall not pay any default interest rate higher than the
interest rate on the note prior to the date of default.’’.
SEC. 204. LOAN LIQUIDATION PILOT PROGRAM.

(a) IN GENERAL.—The Administrator shall carry out a loan
liquidation pilot program (in this section referred to as the ‘‘pilot
program’’) in accordance with the requirements of this section.
(b) SELECTION OF DEVELOPMENT COMPANIES.—
(1) IN GENERAL.—Not later than 90 days after the date
of the enactment of this Act, the Administrator shall establish
a pilot program under which certain development companies
authorized to make loans and issue debentures under title
V of the Small Business Investment Act of 1958 are selected
by the Administrator in accordance with this subsection to
carry out loan liquidations.
(2) CONFLICTS OF INTEREST.—The development companies
selected under paragraph (1) shall agree not to take any action
that would create a potential conflict of interest involving the
development company, the third party lender, or an associate
of the third party lender.
(3) QUALIFICATIONS.—In order to qualify to participate in
the pilot program under this section, each development company shall—
(A) have not less than 6 years of experience in the
program established by title V of the Small Business Investment Act of 1958;

15 USC 695 note.

110 STAT. 3009–737

PUBLIC LAW 104–208—SEPT. 30, 1996

(B) have made, during the 6 most recent fiscal years,
an average of not less than 10 loans per year through
the program established by such title V of the Small Business Investment Act of 1958;
(C) have not less than 2 years of experience in liquidating loans under the authority of a Federal, State, or other
lending program; and
(D) meet such other requirements as the Administration may establish.
(c) AUTHORITY OF DEVELOPMENT COMPANIES.—The development
companies selected under subsection (b) shall, for loans in their
portfolio of loans made through debentures guaranteed under title
V of the Small Business Investment Act of 1958 that are in default
after the date of enactment of this Act, be authorized to—
(1) perform all liquidation and foreclosure functions, including the acceleration or purchase of community injection funds,
subject to such company obtaining prior written approval from
the Administrator before committing the agency to purchase
any other indebtedness secured by the property: Provided, That
the Administrator shall approve or deny a request for such
purchase within a period of 10 business days; and
(2) liquidate such loans in a reasonable and sound manner
and according to commercially accepted practices pursuant to
a liquidation plan approved by the administrator in advance
of its implementation. If the administrator does not approve
or deny a request for approval of a liquidation plan within
10 business days of the date on which the request is made
(or with respect to any routine liquidation activity under such
a plan, within 5 business days) such request shall be deemed
to be approved.
(d) AUTHORITY OF THE ADMINISTRATOR.—In carrying out the
pilot program, the Administrator shall—
(1) have full authority to rescind the authority granted
any development company under this section upon a 10-day
written notice stating the reasons for the rescission; and
(2) not later than 90 days after the admission of the development companies specified in subsection (b), implement the
pilot program.
(e) REPORT.—
(1) IN GENERAL.—The Administrator shall issue a report
on the results of the pilot program to the Committees on
Small Business of the House of Representatives and the Senate.
The report shall include information relating to—
(A) the total dollar amount of each loan and project
liquidated;
(B) the total dollar amount guaranteed by the Administration;
(C) total dollar losses;
(D) total recoveries both as percentage of the amount
guaranteed and the total cost of the project; and
(E) a comparison of the pilot program information with
the same information for liquidation conducted outside the
pilot program over the period of time.
(2) REPORTING PERIOD.—The report shall be based on data
from, and issued not later than 90 days after the close of,
the first eight 8 fiscal quarters of the pilot program’s operation
after the date of implementation.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–738

SEC. 205. REGISTRATION OF CERTIFICATES.

(a) CERTIFICATES SOLD PURSUANT TO SMALL BUSINESS ACT.—
Section 5(h) of the Small Business Act (15 U.S.C. 634(h)) is amended—
(1) by redesignating paragraphs (1) through (4) as subparagraphs (A) through (D);
(2) by striking ‘‘(h)’’ and inserting ‘‘(h)(1)’’;
(3) by striking subparagraph (A), as redesignated by paragraph (1) of this subsection, and inserting the following:
‘‘(A) provide for a central registration of all loans and
trust certificates sold pursuant to subsections (f) and (g)
of this section;’’; and
(4) by adding at the end the following:
‘‘(2) Nothing in this subsection shall prohibit the utilization
of a book-entry or other electronic form of registration for
trust certificates. The Administration may, with the consent
of the Secretary of the Treasury, use the book-entry system
of the Federal Reserve System.’’.
(b) CERTIFICATES SOLD PURSUANT TO SMALL BUSINESS INVESTMENT COMPANY PROGRAM.—Section 321(f) (15 U.S.C. 687l(f)) is
amended—
(1) in paragraph (1), by striking ‘‘Such central registration
shall include’’ and all that follows through the period at the
end of the paragraph; and
(2) by adding at the end the following:
‘‘(5) Nothing in this subsection shall prohibit the use of
a book-entry or other electronic form of registration for trust
certificates.’’.
(c) CERTIFICATES SOLD PURSUANT TO DEVELOPMENT COMPANY
PROGRAM.—Section 505(f) (15 U.S.C. 697b(f)) is amended—
(1) by redesignating paragraphs (1) through (4) as subparagraphs (A) through (D);
(2) by striking ‘‘(f)’’ and inserting ‘‘(f)(1)’’;
(3) by striking subparagraph (A), as redesignated by paragraph (1) of this subsection, and inserting the following:
‘‘(A) provide for a central registration of all trust certificates sold pursuant to this section;’’ and
(4) by adding at the end the following:
‘‘(2) Nothing in this subsection shall prohibit the utilization
of a book-entry or other electronic form of registration for
trust certificates.’’.
SEC. 206. PREFERRED SURETY BOND GUARANTEE PROGRAM.

(a) ADMISSIONS OF ADDITIONAL PROGRAM PARTICIPANTS.—Section 411(a) (15 U.S.C. 694(a)) is amended by adding a new paragraph (5), as follows:
‘‘(5)(A) The Administration shall promptly act upon an
application from a surety to participate in the Preferred Surety
Bond Guarantee Program, authorized by paragraph (3), in
accordance with criteria and procedures established in regulations pursuant to subsection (d).
‘‘(B) The Administration is authorized to reduce the allotment of bond guarantee authority or terminate the participation
of a surety in the Preferred Surety Bond Guarantee Program
based on the rate of participation of such surety during the
4 most recent fiscal year quarters compared to the median
rate of participation by the other sureties in the program.’’.

15 USC 694b.

110 STAT. 3009–739
15 USC 694b
note.

PUBLIC LAW 104–208—SEPT. 30, 1996

(b) EFFECTIVE DATE.—The amendments made by subsection
(a) shall apply with respect to applications received (or pending
substantive evaluation) on or after October 1, 1995.
SEC. 207. SENSE OF THE CONGRESS.

(a) IN GENERAL.—It is the sense of the Congress that the
subsidy models prepared by the Office of Management and Budget
relative to loan programs sponsored by the United States Small
Business Administration have a tendency to—
(1) overestimate potential risks of loss; and
(2) overemphasize historical losses that may be anomalous
and do not truly reflect the success of the programs as a
whole.
(b) INDEPENDENT STUDY.—Consequently, the Congress mandates the independent study in section 103(h) in an attempt to
improve the ability of the Office of Management and Budget to
reflect more accurately the budgetary implications of such programs.
SEC. 208. SMALL BUSINESS INVESTMENT COMPANY IMPROVEMENTS.

(a) DEFINITIONS.—
(1) SMALL BUSINESS CONCERN.—Section 103(5) (15 U.S.C.
662(5)) is amended by inserting before the semicolon the following: ‘‘, except that, for purposes of this Act, an investment
by a venture capital firm, investment company (including a
small business investment company) employee welfare benefit
plan or pension plan, or trust, foundation, or endowment that
is exempt from Federal income taxation—
‘‘(A) shall not cause a business concern to be deemed
not independently owned and operated;
‘‘(B) shall be disregarded in determining whether a
business concern satisfies size standards established pursuant to section 3(a)(2) of the Small Business Act; and
‘‘(C) shall be disregarded in determining whether a
small business concern is a smaller enterprise’’.
(2) PRIVATE CAPITAL.—Section 103(9) (15 U.S.C. 662(9))
is amended to read as follows:
‘‘(9) the term ‘private capital’—
‘‘(A) means the sum of—
‘‘(i) the paid-in capital and paid-in surplus of a
corporate licensee, the contributed capital of the partners of a partnership licensee, or the equity investment
of the members of a limited liability company licensee;
and
‘‘(ii) unfunded binding commitments, from investors that meet criteria established by the Administrator, to contribute capital to the licensee: Provided,
That such unfunded commitments may be counted as
private capital for purposes of approval by the Administrator of any request for leverage, but leverage shall
not be funded based on such commitments; and
‘‘(B) does not include any—
‘‘(i) funds borrowed by a licensee from any source;
‘‘(ii) funds obtained through the issuance of leverage; or
‘‘(iii) funds obtained directly or indirectly from any
Federal, State, or local government, or any government
agency or instrumentality, except for—

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–740

‘‘(I) funds invested by an employee welfare
benefit plan or pension plan; and
‘‘(II) any qualified nonprivate funds (if the
investors of the qualified nonprivate funds do not
control, directly or indirectly, the management,
board of directors, general partners, or members
of the licensee);’’.
(3) NEW DEFINITIONS.—Section 103 (15 U.S.C. 662) is
amended by striking paragraph (10) and inserting the following:
‘‘(10) the term ‘leverage’ includes—
‘‘(A) debentures purchased or guaranteed by the
Administration;
‘‘(B) participating securities purchased or guaranteed
by the Administration; and
‘‘(C) preferred securities outstanding as of October 1,
1995;
‘‘(11) the term ‘third party debt’ means any indebtedness
for borrowed money, other than indebtedness owed to the
Administration;
‘‘(12) the term ‘smaller enterprise’ means any small business concern that, together with its affiliates—
‘‘(A) has—
‘‘(i) a net financial worth of not more than
$6,000,000, as of the date on which assistance is provided under this Act to that business concern; and
‘‘(ii) an average net income for the 2-year period
preceding the date on which assistance is provided
under this Act to that business concern, of not more
than $2,000,000, after Federal income taxes (excluding
any carryover losses); or
‘‘(B) satisfies the standard industrial classification size
standards established by the Administration for the industry in which the small business concern is primarily
engaged;
‘‘(13) the term ‘qualified nonprivate funds’ means any—
‘‘(A) funds directly or indirectly invested in any
applicant or licensee on or before August 16, 1982, by
any Federal agency, other than the Administration, under
a provision of law explicitly mandating the inclusion of
those funds in the definition of the term ‘private capital’;
‘‘(B) funds directly or indirectly invested in any
applicant or licensee by any Federal agency under a provision of law enacted after September 4, 1992, explicitly
mandating the inclusion of those funds in the definition
of the term ‘private capital’; and
‘‘(C) funds invested in any applicant or licensee by
one or more State or local government entities (including
any guarantee extended by those entities) in an aggregate
amount that does not exceed 33 percent of the private
capital of the applicant or licensee;
‘‘(14) the terms ‘employee welfare benefit plan’ and ‘pension
plan’ have the same meanings as in section 3 of the Employee
Retirement Income Security Act of 1974, and are intended
to include—
‘‘(A) public and private pension or retirement plans
subject to such Act; and

110 STAT. 3009–741

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(B) similar plans not covered by such Act that have
been established and that are maintained by the Federal
Government or any State or political subdivision, or any
agency or instrumentality thereof, for the benefit of employees;
‘‘(15) the term ‘member’ means, with respect to a licensee
that is a limited liability company, a holder of an ownership
interest or a person otherwise admitted to membership in the
limited liability company; and
‘‘(16) the term ‘limited liability company’ means a business
entity that is organized and operating in accordance with a
State limited liability company statute approved by the
Administration.’’.
(b) ORGANIZATION OF SMALL BUSINESS INVESTMENT COMPANIES.—
(1) LIMITED LIABILITY COMPANIES.—Section 301(a) (15
U.S.C. 681(a)) is amended in the first sentence, by striking
‘‘body or’’ and inserting ‘‘body, a limited liability company,
or’’.
(2) ISSUANCE OF LICENSE.—Section 301(c) (15 U.S.C. 681(c))
is amended to read as follows:
‘‘(c) ISSUANCE OF LICENSE.—
‘‘(1) SUBMISSION OF APPLICATION.—Each applicant for a
license to operate as a small business investment company
under this Act shall submit to the Administrator an application,
in a form and including such documentation as may be prescribed by the Administrator.
‘‘(2) PROCEDURES.—
‘‘(A) STATUS.—Not later than 90 days after the initial
receipt by the Administrator of an application under this
subsection, the Administrator shall provide the applicant
with a written report detailing the status of the application
and any requirements remaining for completion of the
application.
‘‘(B) APPROVAL OR DISAPPROVAL.—Within a reasonable
time after receiving a completed application submitted in
accordance with this subsection and in accordance with
such requirements as the Administrator may prescribe by
regulation, the Administrator shall—
‘‘(i) approve the application and issue a license
for such operation to the applicant if the requirements
of this section are satisfied; or
‘‘(ii) disapprove the application and notify the
applicant in writing of the disapproval.
‘‘(3) MATTERS CONSIDERED.—In reviewing and processing
any application under this subsection, the Administrator—
‘‘(A) shall determine whether—
‘‘(i) the applicant meets the requirements of subsections (a) and (c) of section 302; and
‘‘(ii) the management of the applicant is qualified
and has the knowledge, experience, and capability necessary to comply with this Act;
‘‘(B) shall take into consideration—
‘‘(i) the need for and availability of financing for
small business concerns in the geographic area in
which the applicant is to commence business;

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–742

‘‘(ii) the general business reputation of the owners
and management of the applicant; and
‘‘(iii) the probability of successful operations of the
applicant, including adequate profitability and financial soundness; and
‘‘(C) shall not take into consideration any projected
shortage or unavailability of leverage.
‘‘(4) EXCEPTION.—
‘‘(A) IN GENERAL.—Notwithstanding any other provision of this Act, the Administrator may, in the discretion
of the Administrator and based on a showing of special
circumstances and good cause, approve an application and
issue a license under this subsection with respect to any
applicant that—
‘‘(i) has private capital of not less than $3,000,000;
‘‘(ii) would otherwise be issued a license under
this subsection, except that the applicant does not satisfy the requirements of section 302(a); and
‘‘(iii) has a viable business plan reasonably projecting profitable operations and a reasonable timetable
for achieving a level of private capital that satisfies
the requirements of section 302(a).
‘‘(B) LEVERAGE.—An applicant licensed pursuant to the
exception provided in this paragraph shall not be eligible
to receive leverage as a licensee until the applicant satisfies
the requirements of section 302(a).’’.
(3) SPECIALIZED SMALL BUSINESS INVESTMENT COMPANIES.—
(A) REPEAL.—Section 301(d) (15 U.S.C. 681(d)) is
repealed.
(B) EFFECT ON EXISTING LICENSES.—The repeal under
subparagraph (A) shall not be construed to require the
Administrator to cancel, revoke, withdraw, or modify any
license issued under section 301(d) of the Small Business
Investment Act of 1958 before the date of enactment of
this Act.
(c) CAPITAL REQUIREMENTS.—
(1) INCREASED MINIMUM CAPITAL REQUIREMENTS.—Section
302(a) (15 U.S.C. 682(a)) is amended by striking ‘‘(a)’’ and
all that follows through ‘‘The Administration shall also determine the ability of the company,’’ and inserting the following:
‘‘(a) AMOUNT.—
‘‘(1) IN GENERAL.—Except as provided in paragraph (2),
the private capital of each licensee shall be not less than—
‘‘(A) $5,000,000; or
‘‘(B) $10,000,000, with respect to each licensee authorized or seeking authority to issue participating securities
to be purchased or guaranteed by the Administration under
this Act.
‘‘(2) EXCEPTION.—The Administrator may, in the discretion
of the Administrator and based on a showing of special circumstances and good cause, permit the private capital of a
licensee authorized or seeking authorization to issue participating securities to be purchased or guaranteed by the Administration to be less than $10,000,000, but not less than $5,000,000,
if the Administrator determines that such action would not
create or otherwise contribute to an unreasonable risk of default
or loss to the Federal Government.

15 USC 681 note.

110 STAT. 3009–743

PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(3) ADEQUACY.—In addition to the requirements of paragraph (1), the Administrator shall—
‘‘(A) determine whether the private capital of each
licensee is adequate to assure a reasonable prospect that
the licensee will be operated soundly and profitably, and
managed actively and prudently in accordance with its
articles; and
‘‘(B) determine that the licensee will be able’’.
(2) EXEMPTION FOR CERTAIN LICENSEES.—Section 302(a) (15
U.S.C. 682(a)) is amended by adding at the end the following
new paragraph:
‘‘(4) EXEMPTION FROM CAPITAL REQUIREMENTS.—The
Administrator may, in the discretion of the Administrator,
approve leverage for any licensee licensed under subsection
(c) or (d) of section 301 before the date of enactment of the
Small Business Program Improvement Act of 1996 that does
not meet the capital requirements of paragraph (1), if—
‘‘(A) the licensee certifies in writing that not less than
50 percent of the aggregate dollar amount of its financings
after the date of enactment of the Small Business Program
Improvement Act of 1996 will be provided to smaller enterprises; and
‘‘(B) the Administrator determines that such action
would not create or otherwise contribute to an unreasonable
risk of default or loss to the United States Government.’’.
(3) DIVERSIFICATION OF OWNERSHIP.—Section 302(c) (15
U.S.C. 682(c)) is amended to read as follows:
‘‘(c) DIVERSIFICATION OF OWNERSHIP.—The Administrator shall
ensure that the management of each licensee licensed after the
date of enactment of the Small Business Program Improvement
Act of 1996 is sufficiently diversified from and unaffiliated with
the ownership of the licensee in a manner that ensures independence and objectivity in the financial management and oversight
of the investments and operations of the licensee.’’.
(d) BORROWING.—
(1) DEBENTURES.—Section 303(b) (15 U.S.C. 683(b)) is
amended in the first sentence, by striking ‘‘(but only’’ and
all that follows through ‘‘terms)’’.
(2) THIRD PARTY DEBT.—Section 303(c) (15 U.S.C. 683(c))
is amended to read as follows:
‘‘(c) THIRD PARTY DEBT.—The Administrator—
‘‘(1) shall not permit a licensee having outstanding leverage
to incur third party debt that would create or contribute to
an unreasonable risk of default or loss to the Federal Government; and
‘‘(2) shall permit such licensees to incur third party debt
only on such terms and subject to such conditions as may
be established by the Administrator, by regulation or otherwise.’’.
(3) REQUIREMENT TO FINANCE SMALLER ENTERPRISES.—Section 303(d) (15 U.S.C. 683(d)) is amended to read as follows:
‘‘(d) REQUIREMENT TO FINANCE SMALLER ENTERPRISES.—The
Administrator shall require each licensee, as a condition of approval
of an application for leverage, to certify in writing that not less
than 20 percent of the aggregate dollar amount of the financings
of the licensee will be provided to smaller enterprises.’’.
(4) CAPITAL IMPAIRMENT REQUIREMENTS.—

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–744

(A) IN GENERAL.—Section 303(e) (15 U.S.C. 683(e)) is
amended to read as follows:
‘‘(e) CAPITAL IMPAIRMENT.—Before approving any application
for leverage submitted by a licensee under this Act, the Administrator—
‘‘(1) shall determine that the private capital of the licensee
meets the requirements of section 302(a); and
‘‘(2) shall determine, taking into account the nature of
the assets of the licensee, the amount and terms of any third
party debt owed by such licensee, and any other factors determined to be relevant by the Administrator, that the private
capital of the licensee has not been impaired to such an extent
that the issuance of additional leverage would create or otherwise contribute to an unreasonable risk of default or loss to
the Federal Government.’’.
(B) REGULATIONS.—
(i) UNIFORM APPLICABILITY.—Any regulation issued
by the Administration to implement section 303(e) of
the Small Business Investment Act of 1958 that applies
to any licensee with outstanding leverage obtained
before the effective date of that regulation, shall apply
uniformly to all licensees with outstanding leverage
obtained before that effective date.
(ii) DEFINITIONS.—For purposes of this subparagraph, the terms ‘‘Administration’’, ‘‘leverage’’ and
‘‘licensee’’ have the same meanings as in section 103
of the Small Business Investment Act of 1958.
(5) EQUITY INVESTMENT REQUIREMENT.—Section 303(g)(4)
(15 U.S.C. 683(g)(4)) is amended by striking ‘‘and maintain’’.
(6) FEES.—Section 303 (15 U.S.C. 683) is amended—
(A) in subsection (b), in the fifth sentence, by striking
‘‘1 per centum’’, and all that follows before the period
at the end of the sentence and inserting the following:
‘‘1 percent, plus an additional charge of 1 percent per
annum which shall be paid to and retained by the Administration’’;
(B) in subsection (g)(2), by striking ‘‘1 per centum,’’
and all that follows before the period at the end of the
paragraph and inserting the following: ‘‘1 percent, plus
an additional charge of 1 percent per annum which shall
be paid to and retained by the Administration’’; and
(C) by adding at the end the following new subsections:
‘‘(i) LEVERAGE FEE.—With respect to leverage granted by the
Administration to a licensee, the Administration shall collect from
the licensee a nonrefundable fee in an amount equal to 3 percent
of the face amount of leverage granted to the licensee, payable
upon the earlier of the date of entry into any commitment for
such leverage or the date on which the leverage is drawn by
the licensee.
‘‘(j) CALCULATION OF SUBSIDY RATE.—All fees, interest, and
profits received and retained by the Administration under this
section shall be included in the calculations made by the Director
of the Office of Management and Budget to offset the cost (as
that term is defined in section 502 of the Federal Credit Reform
Act of 1990) to the Administration of purchasing and guaranteeing
debentures and participating securities under this Act.’’.

15 USC 683 note.

110 STAT. 3009–745

PUBLIC LAW 104–208—SEPT. 30, 1996

(e) LIABILITY OF THE UNITED STATES.—Section 308(e) (15 U.S.C.
687(e)) is amended by striking ‘‘Nothing’’ and inserting ‘‘Except
as expressly provided otherwise in this Act, nothing’’.
(f) EXAMINATIONS; VALUATIONS.—
(1) EXAMINATIONS.—Section 310(b) (15 U.S.C. 687b(b)) is
amended in the first sentence by inserting ‘‘which may be
conducted with the assistance of a private sector entity that
has both the qualifications to conduct and expertise in conducting such examinations,’’ after ‘‘Investment Division of the
Administration,’’.
(2) VALUATIONS.—Section 310(d) (15 U.S.C. 687b(d)) is
amended to read as follows:
‘‘(d) VALUATIONS.—
‘‘(1) FREQUENCY OF VALUATIONS.—
‘‘(A) IN GENERAL.—Each licensee shall submit to the
Administrator a written valuation of the loans and investments of the licensee not less often than semiannually
or otherwise upon the request of the Administrator, except
that any licensee with no leverage outstanding shall submit
such valuations annually, unless the Administrator determines otherwise.
‘‘(B) MATERIAL ADVERSE CHANGES.—Not later than 30
days after the end of a fiscal quarter of a licensee during
which a material adverse change in the aggregate valuation
of the loans and investments or operations of the licensee
occurs, the licensee shall notify the Administrator in writing of the nature and extent of that change.
‘‘(C) INDEPENDENT CERTIFICATION.—
‘‘(i) IN GENERAL.—Not less than once during each
fiscal year, each licensee shall submit to the Administrator the financial statements of the licensee, audited
by an independent certified public accountant approved
by the Administrator.
‘‘(ii) AUDIT REQUIREMENTS.—Each audit conducted
under clause (i) shall include—
‘‘(I) a review of the procedures and documentation used by the licensee in preparing the valuations required by this section; and
‘‘(II) a statement by the independent certified
public accountant that such valuations were prepared in conformity with the valuation criteria
applicable to the licensee established in accordance
with paragraph (2).
‘‘(2) VALUATION CRITERIA.—Each valuation submitted under
this subsection shall be prepared by the licensee in accordance
with valuation criteria, which shall—
‘‘(A) be established or approved by the Administrator;
and
‘‘(B) include appropriate safeguards to ensure that the
noncash assets of a licensee are not overvalued.’’.
(g) TRUSTEE OR RECEIVERSHIP OVER LICENSEES.—
(1) FINDING.—It is the finding of the Congress that
increased recoveries on assets in liquidation under the Small
Business Investment Act of 1958 are in the best interests
of the Federal Government.
(2) DEFINITIONS.—For purposes of this subsection—

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–746

(A) the term ‘‘Administrator’’ means the Administrator
of the Small Business Adminstration;
(B) the term ‘‘Administration’’ means the Small Business Administration; and
(C) the term ‘‘licensee’’ has the same meaning as in
section 103.
(3) LIQUIDATION PLAN.—
(A) IN GENERAL.—Not later than October 15, 1996,
the Administrator shall submit to the Committees on Small
Business of the Senate and the House of Representatives
a detailed plan to expedite the orderly liquidation of all
licensee assets in liquidation, including assets of licensees
in receivership or in trust held by or under the control
of the Administration or its agents.
(B) CONTENTS.—The plan submitted under paragraph
(1) shall include a timetable for liquidating the liquidation
portfolio of small business investment company assets
owned by the Administration, and shall contain the findings
and recommendations of the Administrator on various
options providing for the fair and expeditious liquidation
of such assets within a reasonable period of time, giving
due consideration to the option of entering into one or
more contracts with private sector entities having the
capability to carry out the orderly liquidation of similar
assets.
(h) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) SMALL BUSINESS INVESTMENT ACT OF 1958.—The Small
Business Investment Act of 1958 (15 U.S.C. 661 et seq.) is
amended—
(A) in section 303—
(i) in subsection (a), by striking ‘‘debenture bonds,’’
and inserting ‘‘securities,’’;
(ii) by striking subsection (f) and inserting the
following:
‘‘(f) REDEMPTION OR REPURCHASE OF PREFERRED STOCK.—
Notwithstanding any other provision of law—
‘‘(1) the Administrator may allow the issuer of any preferred
stock sold to the Administration before November 1, 1989 to
redeem or repurchase such stock, upon the payment to the
Administration of an amount less than the par value of such
stock, for a repurchase price determined by the Administrator
after consideration of all relevant factors, including—
‘‘(A) the market value of the stock;
‘‘(B) the value of benefits provided and anticipated
to accrue to the issuer;
‘‘(C) the amount of dividends paid, accrued, and anticipated; and
‘‘(D) the estimate of the Administrator of any anticipated redemption; and
‘‘(2) any moneys received by the Administration from the
repurchase of preferred stock shall be available solely to provide
debenture leverage to licensees having 50 percent or more
in aggregate dollar amount of their financings invested in
smaller enterprises.’’; and
(iii) in subsection (g)(8)—
(I) by striking ‘‘partners or shareholders’’ and
inserting ‘‘partners, shareholders, or members’’;

15 USC 683.

110 STAT. 3009–747

15 USC 687.

15 USC 687b.

15 USC 687d.

15 USC 80a–18,
687i–687m.
15 USC 687l.

15 USC 687m.
15 USC 697f.

15 USC 634 note.

PUBLIC LAW 104–208—SEPT. 30, 1996

(II) by striking ‘‘partner’s or shareholder’s’’ and
inserting ‘‘partner’s, shareholder’s, or member’s’’;
and
(III) by striking ‘‘partner or shareholder’’ and
inserting ‘‘partner, shareholder, or member’’;
(B) in section 308(h), by striking ‘‘subsection (c) or
(d) of section 301’’ each place that term appears and inserting ‘‘section 301’’;
(C) in section 310(c)(4), by striking ‘‘not less than four
years in the case of section 301(d) licensees and in all
other cases,’’;
(D) in section 312—
(i) by striking ‘‘shareholders or partners’’ and
inserting ‘‘shareholders, partners, or members’’; and
(ii) by striking ‘‘shareholder, or partner’’ each place
that term appears and inserting ‘‘shareholder, partner,
or member’’;
(E) by striking sections 317 and 318, and redesignating
sections 319 through 322 as sections 317 through 320,
respectively;
(F) in section 319, as redesignated—
(i) in subsection (a), by striking ‘‘, including companies operating under the authority of section 301(d),’’;
and
(ii) in subsection (f)(2), by inserting ‘‘or investments
in obligations of the United States’’ after ‘‘accounts’’;
(G) in section 320, as redesignated, by striking ‘‘section
321’’ and inserting ‘‘section 319’’; and
(H) in section 509—
(i) in subsection (a)(1), by striking the second sentence; and
(ii) in subsection (e)(1)(B), by striking ‘‘subsection
(c) or (d) of section 301’’ and inserting ‘‘section 301’’.
(2) AMENDMENT IN OTHER LAW.—Section 11(h) of the Federal Home Loan Bank Act (12 U.S.C. 1431(h)) is amended
by striking ‘‘301(d)’’ and inserting ‘‘301’’.
(i) AMENDMENTS TO THE SMALL BUSINESS ACT.—
(1) POWERS OF THE ADMINISTRATOR.—Section 5(b)(7) of the
Small Business Act (15 U.S.C. 634(b)(7)) is amended by striking
the colon and all that follows before the semicolon at the
end of the paragraph and inserting the following: ‘‘: Provided,
That with respect to deferred participation loans, the Administrator may, in the discretion of and pursuant to regulations
promulgated by the Administrator, authorize participating lending institutions to take actions relating to loan servicing on
behalf of the Administrator, including determining eligibility
and creditworthiness and loan monitoring, collection, and liquidation’’.
(2) AUTHORIZATION OF APPROPRIATIONS.—Section 20(p)(3)
of the Small Business Act (15 U.S.C. 631 note) is amended
by striking subparagraph (B) and inserting the following:
‘‘(B) $300,000,000 in guarantees of debentures; and’’.
(j) EFFECTIVE DATE.—This section and the amendments made
by this section shall become effective on the date of enactment
of this Act.

PUBLIC LAW 104–208—SEPT. 30, 1996

110 STAT. 3009–748

DIVISION E
TITLE I—CALIFORNIA BAY-DELTA ENVIRONMENTAL
ENHANCEMENT
AND
WATER SECURITY ACT
SEC. 101. SHORT TITLE.

This title may be cited as the ‘‘California Bay-Delta Environmental Enhancement and Water Security Act.’’
SEC. 102. PROGRAM FUNDING.

(a) AUTHORIZATION OF APPROPRIATIONS.—For each of the fiscal
years 1998, 1999 and 2000, there are authorized to be appropriated
an additional $143,300,000 for both (1) the initial Federal share
of the cost of developing and implementing that portion of an
ecosystem protection plan for the Bay-Delta, referred to as ‘‘the
Category III program’’ emanating out of the document entitled
‘‘Principles for Agreement on Bay-Delta Standards Between the
State of California and the Federal Government,’’ dated December
15, 1994, and, (2) the initial Federal share of the cost of developing
and implementing the ecosystem restoration elements of the longterm CALFED Bay-Delta Program, pursuant to the cost-sharing
agreement required by Section 78684.10 of California Senate Bill
900, Chapter 135, Statutes of 1996, signed by the Governor of
California on July 11, 1996. Funds appropriated pursuant to this
section shall remain available until expended and shall be administered in accordance with procedures established by CALFED BayDelta Program until Congress authorizes another entity that is
recommended by CALFED Bay-Delta Program to carry out this
section.
(b) Funds authorized to be appropriated pursuant to this section
to those agencies that are currently or subsequently become participants in the CALFED Bay-Delta Program shall be in addition
to the baseline funding levels established pursuant to section 103
of this title, for currently authorized projects and programs under
the Central Valley Project Improvement Act, Title 34 of Public
Law 102–575 and other currently authorized Federal programs
for the purpose of Bay-Delta ecosystem protection and restoration.
(c) Nothing in this title shall be deemed to diminish the Federal
interest in and responsibility for working with the State of California through the CALFED Bay-Delta Program in developing, funding
and implementing a balanced, long-term solution to the problems
of ecosystem quality, water quality, water supply and reliability,
and system vulnerability affecting the San Francisco Bay/Sacramento-San Joaquin Delta Watershed in California. Participation
in such long-term solution shall only be undertaken pursuant to
authorization provided by law other than this title, and shall be
based on the equitable allocation of program costs among beneficiary
groups that the CALFED Bay-Delta programs shall develop.
(d) To the extent not otherwise authorized, those agencies and
departments that are currently or subsequently become participants
in the CALFED Bay-Delta Program are hereby authorized to undertake the activities and programs for which Federal cost sharing
is provided by this section. The United States shall immediately
initiate coordinated consultations and negotiations with the State

California BayDelta
Environmental
Enhancement
and Water
Security Act.

110 STAT. 3009–749

PUBLIC LAW 104–208—SEPT. 30, 1996

of California to expeditiously execute the cost-sharing agreement
required by Section 78684.10 of California Senate Bill 900, Chapter
135, Statutes of 1996, signed by the Governor of California on
July 11, 1996. Such activities shall include, but not be limited
to, planning, design, technical assistance and construction for ecosystem restoration programs and projects.
SEC. 103. BUDGET CROSSCUT.

The Office of Management and Budget is directed to submit
to the House and Senate Committees on Appropriations, as part
of the President’s Fiscal Year 1998 Budget, an interagency budget
crosscut that displays Federal spending for fiscal years 1993
through 1998 on ecosystem restoration and other purposes in the
Bay-Delta region, separately showing funding provided previously
or requested under both preexisting authorities and new authorities
granted by this title.
SEC. 104. EFFECTIVE DATE.

Section 102 of this title shall take effect on the date of passage
of California State Proposition 204.
This Act may be cited as the ‘‘Omnibus Consolidated Appropriations Act, 1997’’.
Approved September 30, 1996.

LEGISLATIVE HISTORY—H.R. 3610 (S. 1894):
HOUSE REPORTS: Nos. 104–617 (Comm. on Appropriations) and 104–863 (Comm.
on Conference).
SENATE REPORTS: No. 104–286 accompanying S. 1894 (Comm. on Appropriations).
CONGRESSIONAL RECORD, Vol. 142 (1996):
June 13, considered and passed House.
July 11, 17, 18, considered and passed Senate, amended, in lieu of S. 1894.
Sept. 28, House agreed to conference report.
Sept. 30, Senate agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996):
Sept. 30, Presidential statement.

Æ