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TITLE I--FEDERAL TORT CLAIMS AMENDMENTS

SEC. 101. REMEDY FOR UNLAWFUL HUMAN EXPERIMENTATION.

    Chapter 171 of title 28, United States Code, is amended by
inserting after section 2680 the following:
``Sec. 2681. Human Experimentation
    ``Section 2680 shall not apply to--
            ``(1) any claim arising out of conduct or research
        involving a human being as an experimental subject without the
        informed consent of the subject or a legal representative of
        the subject; or
            ``(2) any claim arising out of the subjection of a human
        being to any experimental chemical, radiological, or biological
        agent, drug, or other test article without the informed consent
        of the human subject or a legal representative of the subject.
``Sec. 2682. Nuclear Weapons Facility Operations.
    ``Section 2680 shall not apply to any claim arising out of
operations of any federally owned nuclear weapons facility involved in
the production of nuclear weapons under the authority of the Secretary
of Energy or any predecessor which had such authority.''.

SEC. 102. CONFORMING AMENDMENT.

    The table of contents for such chapter 171 is amended by adding
after the item relating to section 2680 the following:

``2681. Human experimentation.
``2682. Nuclear weapons facility operations.''.

          TITLE II--CONSTITUTIONAL AND HUMAN RIGHTS VIOLATIONS

SEC. 201. JURISDICTION OF DISTRICT COURTS.

    Section 1346(b) of title 28, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(b)'';
            (2) by adding at the end thereof the following new
        paragraph:
    ``(2) Subject to the provisions of chapter 172, the district courts
shall have exclusive jurisdiction of civil actions on claims for money
damages based on constitutional torts.''.

SEC. 202. CONSTITUTIONAL TORTS PROCEDURE.

    Title 28 of the United States Code is amended by inserting after
chapter 171 the following new chapter:

                  ``CHAPTER 172--CONSTITUTIONAL TORTS

``Sec. 2691. Definitions
    ``As used in this chapter and sections 1346(b)(2) and 2401(b)(2)--
            ``(1) the term `Federal agency' includes any executive
        department, military department, independent establishment of
        the United States, any person or entity acting as an
        instrumentality or agent of the United States, any contractor
        with the United States, any other establishment of the United
        States (including the Executive Office of the President), and
        any party acting in concert with the United States;
            ``(2) the term `employee of the Government' includes
        officers and employees in the executive branch of the Federal
        Government, members of the military or naval forces of the
        United States, members of the National Guard while engaged in
        training or duty under section 316, 502, 503, 504, or 505 of
        title 32, and any person acting on behalf of or in concert with
        a Federal agency, temporarily or permanently in the service of
        the United States, whether with or without compensation, and
        whose acts or omissions are done with the knowledge or consent
        of the United States; and
            ``(3) the term `constitutional tort' means a violation of
        the Constitution of the United States or violation of human
        rights resulting from or caused by the act or omission of a
        Federal agency or an employee of the Government while acting
        within the scope of the employee's office, employment, or
        apparent authority, or which results from the negligent
        supervision of an employee of the Government.
``Sec. 2692. Administrative adjustment of claims
    ``(a) The head of each Federal agency may, in accordance with
regulations prescribed by the Attorney General, compromise and settle
any claim for money damages based on a constitutional tort, except that
any award, compromise, or settlement in excess of $25,000 shall be
effected only with the prior written approval of the Attorney General.
    ``(b) Any award, compromise, settlement, or determination made
under this section shall be final and conclusive on the United States,
except when procured by means of fraud.
    ``(c) Payment of any award, compromise, or settlement made under
this section or made by the Attorney General in any amount under
section 2697 shall be paid in a manner similar to judgments and
compromises in like causes. Appropriations or funds available for the
payment of such judgments and compromises shall be available for the
payment of awards, compromises, or settlements under this chapter.
    ``(d) The acceptance by a claimant of any award, compromise, or
settlement made under this section or section 2697 shall be final and
conclusive on the claimant, and shall constitute a complete release of
any claim against the United States and against the employee of the
Government whose act or omission gave rise to the claim, by reason of
the same subject matter.
``Sec. 2693. Liability of the United States
    ``(a) The United States shall be liable for compensatory damages
for any constitutional tort, but shall not be liable for interest prior
to judgment or for punitive damages except as herein provided. With
respect to any claim for money damages based on a constitutional tort,
the United States shall be liable for an amount not greater than
either--
            (1) actual damages, or
            (2) nominal damages in an amount which is the greater of--
                    (A) $25,000, or
                    (B) in the case of a continuing violation, $500 per
                day for each violation.
If the conduct giving rise to the constitutional tort claim was
undertaken willfully or recklessly, the court shall award, in addition,
exemplary damages as are just and reasonable under the circumstances,
as determined by the trier of fact.
    ``(b) A class action in conformity with the requirements of the
Federal Rules of Civil Procedure may be instituted on a constitutional
tort claim if it satisfies the provisions of rule 23 thereof, and shall
be maintained where certified by the court before which the action is
filed.
``Sec. 2694. Disposition by Federal agency as prerequisite; evidence
    ``(a) An action shall not be instituted upon a claim against the
United States for money damages based on a constitutional tort unless
the claimant shall have first presented the claim to the appropriate
Federal agency and that claim shall have been finally denied by the
agency in writing and sent to the claimant by certified or registered
mail. The failure of an agency to make final disposition of a claim
within 6 months after it is filed shall, at the option of the claimant
any time thereafter, be deemed a final denial of the claim for purposes
of this section. This subsection shall not apply to such claims as may
be asserted under the Federal Rules of Civil Procedure by third-party
complaint, cross-claim, or counterclaim.
    ``(b) Except as to a class action claim or if damages are not fully
ascertainable at the time of presentation pursuant to subsection (a),
an action under this section shall not be instituted for any sum in
excess of the amount of the claim presented to the Federal agency,
except where the increased amount is based upon newly discovered
evidence not reasonably discoverable at the time of presenting the
claim to the Federal agency or upon allegation and proof of intervening
facts, relating to the amount of the claim.
``Sec. 2695. Jury trial
    ``Any action brought pursuant to this chapter upon a claim for
money damages based on a constitutional tort shall, at the request of
any party to such action, be tried by the court with a jury.
``Sec. 2696. Judgment as bar
    ``The judgment in an action under section 1346(b)(2) shall
constitute a complete bar to any action by the claimant involved, by
reason of the same constitutional violation against the employee of the
Government whose act or omission gave rise to the claim, but shall not
act as a release on any claim for violation of any other law.
``Sec. 2697. Compromise
    ``The Attorney General may arbitrate, compromise, or settle any
claim cognizable under section 1346(b)(2), after the commencement of an
action on that claim.
``Sec. 2698. Attorney fees; penalty
    ``(a) Any claimant to whom a judgment is awarded under section
1346(b)(2), or to whom an award, compromise, or settlement is made
under section 2697 or 2692 shall, in addition to such judgment, award,
compromise, or settlement, be entitled to receive a reasonable
attorney's fee and other litigation costs reasonably incurred,
including attorney fees and costs attributable to processing an
administrative claim under section 2692. The amount of such attorney's
fee may not exceed 25 per cent of any judgment rendered under section
1346(b)(2) or any award, compromise, or settlement made under section
2697, except as otherwise approved by the court before whom the action
is filed, or 20 per cent of any award, compromise, or settlement made
under section 2692.
    ``(b) Any attorney who charges, demands, receives, or collects for
services rendered in connection with a judgment, award, compromise, or
settlement described in subsection (a) any amount in excess of that
allowed under subsection (a) shall, if recovery be had, be fined not
more than $2,000 or imprisoned not more than one year, or both.
``Sec. 2699. Exclusiveness of remedy
    ``(a) The authority of any Federal agency to sue and be sued in its
own name shall not be construed to authorize suits against such Federal
agency on constitutional tort claims arising under this chapter which
are cognizable under section 1346(b)(2), and the remedies provided by
this title in such case shall be exclusive.
    ``(b)(1) Upon filing a claim with the district court under section
1346(b)(2), the remedy against the United States provided by section
2693 for claims for money damages based on constitutional torts shall
be exclusive of any other Federal civil action or proceeding for money
damages by reason of the same subject matter against the employee whose
act or omission gave rise to the claim or against the estate of such
employee.
    ``(2) Paragraph (1) does not extend or apply to a civil action
against an employee of the Government--
            ``(A) which is brought against the employee for acting
        outside the scope of the employee's office or employment in
        violation of the Constitution of the United States, or
            ``(B) which is brought for a violation of a statute of the
        United States or a statute of any State under which such action
        against an individual is otherwise authorized.
    ``(c) The provisions of this chapter shall be limited to
constitutional tort claims against Federal agencies or employees of the
Government. Nothing in this chapter shall preclude or preempt suit
against any person or entity on any other claim, whether based on
international, Federal, State, or common law, and no provision of this
chapter shall act as a release, waiver, or bar to such claim.
    ``(d) Upon certification by the Attorney General pursuant to
subsection (e), the Attorney General shall defend any civil action or
proceeding brought in any court against any employee of the Government
or against the estate of such employee for money damages based on any
constitutional tort. The employee against whom such civil action or
proceeding is brought shall deliver within such time after date of
service or knowledge of service as determined by the Attorney General,
all process served upon the employee or an attested true copy thereof
to the employee's immediate superior or to whomever was designated by
the head of the employee's department to receive such papers and such
person shall promptly furnish copies of the pleadings and process
therein to the United States attorney for the district embracing the
place wherein the proceeding is brought, to the Attorney General, and
to the head of the employee's employing Federal agency.
    ``(e)(1) Upon certification by the Attorney General that the
defendant was acting within the scope of the defendant's office or
employment at the time of the incident out of which the claim arose,
any civil action or proceeding commenced upon such claim in a United
States district court shall be deemed an action against the United
States under the provisions of this title and all references thereto,
and the United States shall be substituted as the party defendant.
    ``(2) Upon certification by the Attorney General that the defendant
was acting within the scope of the defendant's office or employment at
the time of the incident out of which the claim arose, any civil action
or proceeding commenced upon such claim in a State court shall be
removed without bond at any time before trial by the Attorney General
to the district court of the United States for the district and
division embracing the place in which the action or proceeding is
pending. Such action or proceeding shall be deemed to be an action or
proceeding brought against the United States under the provisions of
this title and all references thereto, and the United States shall be
substituted as the party defendant. This certification of the Attorney
General shall conclusively establish scope of office or employment for
purposes of removal.
    ``(3) In the event that the Attorney General has refused to certify
scope of office or employment under this section, the employee may at
any time before trial, petition the court to find and certify that the
employee was acting within the scope of the employee's office or
employment. Upon such certification by the court, such action or
proceeding shall be deemed to be an action or proceeding brought
against the United States under the provisions of this title and all
references thereto, and the United States shall be substituted as the
party defendant. A copy of the petition shall be served upon the United
States in accordance with the provisions of rule 4(d)(4) of the Federal
Rules of Civil Procedure. In the event the petition is filed in a civil
action or proceeding pending in a State court, the action or proceeding
may be removed without bond by the Attorney General to the district
court of the United States for the district and division embracing the
place in which it is pending. If, in considering the petition, the
district court determines that the employee was not acting within the
scope of the employee's office or employment, the action or proceeding
shall be remanded to the State court.
    ``(4) Upon certification, any action or proceeding subject to
paragraph (1), (2), or (3) shall proceed in the same manner as any
action against the United States filed pursuant to section 1346(b)(2)
and shall be subject to the limitations and exceptions applicable to
those actions.
    ``(5) Whenever an action or proceeding in which the United States
is substituted as the party defendant under this subsection is
dismissed for failure to first present a claim pursuant to section
2694(a), such a claim shall be deemed to be timely presented under
section 2401(b)(2) if--
            ``(A) the claim would have been timely had it been filed on
        the date the underlying civil action was commenced, and
            ``(B) the claim is presented to the appropriate Federal
        agency within 60 days after dismissal of the civil action.
    ``(f) The Attorney General may compromise or settle any claim
asserted in any civil action or proceeding described in this section in
the manner provided in section 2697, and with the same effect.
``Sec. 2700. Administrative action concerning employee
    ``Where an action or proceeding under section 1346(b)(2) or 2692 on
a constitutional tort results in a judgment against the United States
or an award, compromise, or settlement paid by the United States, the
Attorney General shall forward the matter to the head of the Federal
agency which employed the employee at the time of the employee's
alleged act or omission giving rise to the claim upon which the action
or proceeding was based, for such further administrative investigation
or disciplinary action as may be appropriate. In any administrative
proceeding relating to such investigation or disciplinary action, the
employee may assert as a defense the employee's reasonable good-faith
belief in the lawfulness of the employee's conduct.''.

SEC. 203. STATUTE OF LIMITATION, TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Section 2401.--Section 2401(b) of title 28, United States Code,
concerning the statute of limitations, is amended--
            (1) by inserting ``(1)'' immediately after ``(b)'';
            (2) by inserting ``cognizable under section 1346(b)(1) of
        chapter 171'' after ``United States'';
            (3) by adding at the end the following: ``any claim arising
        out of unlawful human experimentation within the meaning of
        section 2681 shall not be barred if presented in writing to the
        appropriate Federal agency within 3 years from the date of the
        enactment of section 2681.''; and
            (4) by adding after paragraph (1) the following:
    ``(2) A claim for money damages based on a constitutional tort
against the United States cognizable under section 1346(b)(2) of
chapter 172 shall be forever barred unless it is presented in writing
to the appropriate Federal agency within 2 years after such claim
accrues or unless action is begun within 6 months after the date of
mailing, by certified or registered mail, of notice of final denial of
the claim by the agency to which it was presented, except that any
claim accruing prior to enactment of chapter 172 shall not be barred if
presented in writing to the appropriate Federal agency within 3 years
from the date of enactment of chapter 172.''.
    (b) Section 2402.--Section 2402 of title 28, United States Code, is
amended by inserting ``or 1346(b)(2)'' after ``1346(a)(1)''.
    (c) Section 2674.--Section 2674 of title 28, United States Code, is
amended by inserting immediately after ``claims'' the following: ``to
which section 1346(b)(1) of this title applies''.
    (d) Multiple Sections.--Sections 2676, 2677, 2678, and 2679 of
title 28, United States Code, are amended by striking out ``1346(b)''
each place it appears and inserting in lieu thereof ``1346(b)(1)''.
    (e) Section 2680.--Section 2680 of title 28, United States Code, is
amended by striking out ``1346(b)'' and inserting in lieu thereof
``1346(b)(1)''.
    (f) Section 1402.--Section 1402(b) of title 28, United States Code,
is amended by striking out ``subsection (b)'' and inserting in lieu
thereof ``subsections (b)(1) and (b)(2)''.
    (g) Table of Chapters.--The table of chapters for part VI of title
28, United States Code, is amended by inserting after the item relating
to chapter 171 the following new item:

``172. Constitutional Torts.................................    2691''.

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TABLE OF CONTENTS:
     Title I:  Federal Tort Claims Amendments
     Title II:  Constitutional and Human Rights Violations
Title I:  Federal Tort Claims Amendments
 - Makes the Federal Tort Claims Act applicable to any claim arising out of:  (1) conduct or research involving a human being as an experimental subject without the informed consent of the subject or a legal representative; (2) the subjection of a human being to any experimental chemical, radiological, or biological agent, drug, or other test article without informed consent; and (3) operations of any federally owned nuclear weapons facility involved in the production of nuclear weapons under the authority of the Secretary of Energy or any predecessor.
Title II:  Constitutional and Human Rights Violations
 - Grants the district courts exclusive jurisdiction of civil actions on claims for money damages based on constitutional torts.
Authorizes the head of each Federal agency to compromise and settle any claim for money damages based on a constitutional tort, except that any award, compromise, or settlement in excess of $25,000 shall be effected only with the Attorney General's prior written approval.
Sets forth provisions regarding limits on the liability of the United States, disposition by a Federal agency as a prerequisite to court action, jury trial requirements, the effect of certain judgments as a bar to an action, the Attorney General's authority to compromise such a claim, attorney's fees, exclusiveness of remedy, and administrative action concerning the responsible employee when a judgment is awarded against, or a settlement is paid by, the United States.
Establishes a statute of limitations of:  (1) three years for claims arising out of unlawful human experimentation; and (2) two years for claims against the United States for money damages based on a constitutional tort, with exceptions.


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SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Government
Management Reform Act of 1994''.
    (b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title and table of contents.

                       TITLE I--LIMITATION ON PAY

Sec. 101. Limitation on certain annual pay adjustments.

                   TITLE II--HUMAN RESOURCE MANAGEMENT

Sec. 201. SES annual leave accumulation.

               TITLE III--STREAMLINING MANAGEMENT CONTROL

Sec. 301. Authority to increase efficiency in reporting to Congress.

                     TITLE IV--FINANCIAL MANAGEMENT

Sec. 401. Short title.
Sec. 402. Electronic payments.
Sec. 403. Franchise fund pilot programs.
Sec. 404. Simplification of management reporting process.
Sec. 405. Annual financial reports.

                       TITLE I--LIMITATION ON PAY

SEC. 101. LIMITATION ON CERTAIN ANNUAL PAY ADJUSTMENTS.

    Effective as of December 31, 1994--
        (1) section 601(a)(2) of the Legislative Reorganization Act of
    1946 (2 U.S.C. 31(2)) is amended--
            (A) by striking out ``(2) Effective'' and inserting in lieu
        thereof ``(2)(A) Subject to subparagraph (B), effective''; and
            (B) by adding at the end thereof the following:
    ``(B) In no event shall the percentage adjustment taking effect
under subparagraph (A) in any calendar year (before rounding), in any
rate of pay, exceed the percentage adjustment taking effect in such
calendar year under section 5303 of title 5, United States Code, in the
rates of pay under the General Schedule.'';
        (2) section 104 of title 3, United States Code, is amended--
            (A) in the first sentence by inserting ``(a)'' before
        ``The'';
            (B) in the second sentence by striking out ``Effective''
        and inserting in lieu thereof ``Subject to subsection (b),
        effective''; and
            (C) by adding at the end thereof the following:
    ``(b) In no event shall the percentage adjustment taking effect
under the second and third sentences of subsection (a) in any calendar
year (before rounding) exceed the percentage adjustment taking effect
in such calendar year under section 5303 of title 5 in the rates of pay
under the General Schedule.'';
        (3) section 5318 of title 5, United States Code, is amended--
            (A) in the first sentence by striking out ``Effective'' and
        inserting in lieu thereof ``(a) Subject to subsection (b),
        effective''; and
            (B) by adding at the end thereof the following:
    ``(b) In no event shall the percentage adjustment taking effect
under subsection (a) in any calendar year (before rounding), in any
rate of pay, exceed the percentage adjustment taking effect in such
calendar year under section 5303 in the rates of pay under the General
Schedule.''; and
        (4) section 461(a) of title 28, United States Code, is
    amended--
            (A) by striking out ``(a) Effective'' and inserting in lieu
        thereof ``(a)(1) Subject to paragraph (2), effective''; and
            (B) by adding at the end thereof the following:
    ``(2) In no event shall the percentage adjustment taking effect
under paragraph (1) in any calendar year (before rounding), in any
salary rate, exceed the percentage adjustment taking effect in such
calendar year under section 5303 of title 5 in the rates of pay under
the General Schedule.''.

                  TITLE II--HUMAN RESOURCE MANAGEMENT

SEC. 201. SES ANNUAL LEAVE ACCUMULATION.

    (a) In General.--Effective on the first day of the first applicable
pay period beginning after the date of the enactment of this Act,
subsection (f) of section 6304 of title 5, United States Code, is
amended to read as follows:
    ``(f)(1) This subsection applies with respect to annual leave
accrued by an individual while serving in a position in--
        ``(A) the Senior Executive Service;
        ``(B) the Senior Foreign Service;
        ``(C) the Defense Intelligence Senior Executive Service;
        ``(D) the Senior Cryptologic Executive Service; or
        ``(E) the Federal Bureau of Investigation and Drug Enforcement
    Administration Senior Executive Service.
    ``(2) For purposes of applying any limitation on accumulation under
this section with respect to any annual leave described in paragraph
(1)--
        ``(A) `30 days' in subsection (a) shall be deemed to read `90
    days'; and
        ``(B) `45 days' in subsection (b) shall be deemed to read `90
    days'.''.
    (b) Use of Excess Leave.--Notwithstanding the amendment made by
subsection (a), in the case of an employee who, on the effective date
of subsection (a), is subject to subsection (f) of section 6304 of
title 5, United States Code, and who has to such employee's credit
annual leave in excess of the maximum accumulation otherwise permitted
by subsection (a) or (b) of section 6304 (determined applying the
amendment made by subsection (a)), such excess annual leave shall
remain to the credit of the employee and be subject to reduction, in
the same manner as provided in subsection (c) of section 6304.

               TITLE III--STREAMLINING MANAGEMENT CONTROL

SEC. 301. AUTHORITY TO INCREASE EFFICIENCY IN REPORTING TO CONGRESS.

    (a) Purpose.--The purpose of this title is to improve the
efficiency of executive branch performance in implementing statutory
requirements for reports to Congress and committees of Congress such as
the elimination or consolidation of duplicative or obsolete reporting
requirements and adjustments to deadlines that shall provide for more
efficient workload distribution or improve the quality of reports.
    (b) Authority of the Director.--The Director of the Office of
Management and Budget may publish annually in the budget submitted by
the President to the Congress, recommendations for consolidation,
elimination, or adjustments in frequency and due dates of statutorily
required periodic reports to the Congress or committees of Congress.
For each recommendation, the Director shall provide an individualized
statement of the reasons that support the recommendation. In addition,
for each report for which a recommendation is made, the Director shall
state with specificity the exact consolidation, elimination, or
adjustment in frequency or due date that is recommended.
    (c) Recommendations.--The Director's recommendations shall be
consistent with the purpose stated in subsection (a).
    (d) Consultation.--Before the publication of the recommendations
under subsection (b), the Director or his designee shall consult with
the appropriate congressional committees concerning the
recommendations.

                     TITLE IV--FINANCIAL MANAGEMENT

SEC. 401. SHORT TITLE.

    This title may be cited as the ``Federal Financial Management Act
of 1994''.

SEC. 402. ELECTRONIC PAYMENTS.

    (a) In General.--Section 3332 of title 31, United States Code, is
amended to read as follows:

``Sec. 3332. Required direct deposit

    ``(a)(1) Notwithstanding any other provision of law, all Federal
wage, salary, and retirement payments shall be paid to recipients of
such payments by electronic funds transfer, unless another method has
been determined by the Secretary of the Treasury to be appropriate.
    ``(2) Each recipient of Federal wage, salary, or retirement
payments shall designate one or more financial institutions or other
authorized payment agents and provide the payment certifying or
authorizing agency information necessary for the recipient to receive
electronic funds transfer payments through each institution so
designated.
    ``(b)(1) The head of each agency shall waive the requirements of
subsection (a) of this section for a recipient of Federal wage, salary,
or retirement payments authorized or certified by the agency upon
written request by such recipient.
    ``(2) Federal wage, salary, or retirement payments shall be paid to
any recipient granted a waiver under paragraph (1) of this subsection
by any method determined appropriate by the Secretary of the Treasury.
    ``(c)(1) The Secretary of the Treasury may waive the requirements
of subsection (a) of this section for any group of recipients upon
request by the head of an agency under standards prescribed by the
Secretary of the Treasury.
    ``(2) Federal wage, salary, or retirement payments shall be paid to
any member of a group granted a waiver under paragraph (1) of this
subsection by any method determined appropriate by the Secretary of the
Treasury.
    ``(d) This section shall apply only to recipients of Federal wage
or salary payments who begin to receive such payments on or after
January 1, 1995, and recipients of Federal retirement payments who
begin to receive such payments on or after January 1, 1995.
    ``(e) The crediting of the amount of a payment to the appropriate
account on the books of a financial institution or other authorized
payment agent designated by a payment recipient under this section
shall constitute a full acquittance to the United States for the amount
of the payment.''.
    (b) Technical and Conforming Amendment.--The table of sections for
chapter 33 of title 31, United States Code, is amended by amending the
item for section 3332 to read:
``3332. Required direct deposit.''.

SEC. 403. FRANCHISE FUND PILOT PROGRAMS.

    (a) Establishment.--There is authorized to be established on a
pilot program basis in each of six executive agencies a franchise fund.
The Director of the Office of Management and Budget, after consultation
with the chairman and ranking members of the Committees on
Appropriations and Governmental Affairs of the Senate, and the
Committees on Appropriations and Government Operations of the House of
Representatives, shall designate the agencies.
    (b) Uses.--Each such fund may provide, consistent with guidelines
established by the Director of the Office of Management and Budget,
such common administrative support services to the agency and to other
agencies as the head of such agency, with the concurrence of the
Director, determines can be provided more efficiently through such a
fund than by other means. To provide such services, each such fund is
authorized to acquire the capital equipment, automated data processing
systems, and financial management and management information systems
needed. Services shall be provided by such funds on a competitive
basis.
    (c) Funding.--(1) There are authorized to be appropriated to the
franchise fund of each agency designated under subsection (a) such
funds as are necessary to carry out the purposes of the fund, to remain
available until expended. To the extent that unexpended balances remain
available in other accounts for the purposes to be carried out by the
fund, the head of the agency may transfer such balances to the fund.
    (2) Fees for services shall be established by the head of the
agency at a level to cover the total estimated costs of providing such
services. Such fees shall be deposited in the agency's fund to remain
available until expended, and may be used to carry out the purposes of
the fund.
    (3) Existing inventories, including inventories on order,
equipment, and other assets or liabilities pertaining to the purposes
of the fund may be transferred to the fund.
    (d) Report on Pilot Programs.--Within 6 months after the end of
fiscal year 1997, the Director of the Office of Management and Budget
shall forward a report on the results of the pilot programs to the
Committees on Appropriations of the Senate and of the House of
Representatives, and to the Committee on Governmental Affairs of the
Senate and the Committee on Government Operations of the House of
Representatives. The report shall contain the financial and program
performance results of the pilot programs, including recommendations
for--
        (1) the structure of the fund;
        (2) the composition of the funding mechanism;
        (3) the capacity of the fund to promote competition; and
        (4) the desirability of extending the application and
    implementation of franchise funds to other Federal agencies.
    (e) Procurement.--Nothing in this section shall be construed as
relieving any agency of any duty under applicable procurement laws.
    (f) Termination.--The provisions of this section shall expire on
October 1, 1999.

SEC. 404. SIMPLIFICATION OF MANAGEMENT REPORTING PROCESS.

    (a) In General.--To improve the efficiency of executive branch
performance in implementing statutory requirements for financial
management reporting to the Congress and its committees, the Director
of the Office of Management and Budget may adjust the frequency and due
dates of or consolidate any statutorily required reports of agencies to
the Office of Management and Budget or the President and of agencies or
the Office of Management and Budget to the Congress under any laws for
which the Office of Management and Budget has financial management
responsibility, including--
        (1) chapters 5, 9, 11, 33, 35, 37, 39, 75, and 91 of title 31,
    United States Code;
        (2) the Federal Civil Penalties Inflation Adjustment Act of
    1990 (28 U.S.C. 2461 note; Public Law 101-410; 104 Stat. 890).
    (b) Application.--The authority provided in subsection (a) shall
apply only to reports of agencies to the Office of Management and
Budget or the President and of agencies or the Office of Management and
Budget to the Congress required by statute to be submitted between
January 1, 1995, and September 30, 1997.
    (c) Adjustments in Reporting.--The Director may consolidate or
adjust the frequency and due dates of any statutorily required reports
under subsections (a) and (b) only after--
        (1) consultation with the Chairman of the Senate Committee on
    Governmental Affairs and the Chairman of the House of
    Representatives Committee on Government Operations; and
        (2) written notification to the Congress, no later than
    February 8 of each fiscal year covered under subsection (b) for
    those reports required to be submitted during that fiscal year.

SEC. 405. ANNUAL FINANCIAL REPORTS.

    (a) Financial Statements.--Section 3515 of title 31, United States
Code, is amended to read as follows:

``Sec. 3515. Financial statements of agencies

    ``(a) Not later than March 1 of 1997 and each year thereafter, the
head of each executive agency identified in section 901(b) of this
title shall prepare and submit to the Director of the Office of
Management and Budget an audited financial statement for the preceding
fiscal year, covering all accounts and associated activities of each
office, bureau, and activity of the agency.
    ``(b) Each audited financial statement of an executive agency under
this section shall reflect--
        ``(1) the overall financial position of the offices, bureaus,
    and activities covered by the statement, including assets and
    liabilities thereof; and
        ``(2) results of operations of those offices, bureaus, and
    activities.
    ``(c) The Director of the Office of Management and Budget shall
identify components of executive agencies that shall be required to
have audited financial statements meeting the requirements of
subsection (b).
    ``(d) The Director of the Office of Management and Budget shall
prescribe the form and content of the financial statements of executive
agencies under this section, consistent with applicable accounting and
financial reporting principles, standards, and requirements.
    ``(e) The Director of the Office of Management and Budget may waive
the application of all or part of subsection (a) for financial
statements required for fiscal years 1996 and 1997.
    ``(f) Not later than March 1 of 1995 and 1996, the head of each
executive agency identified in section 901(b) of this title and
designated by the Director of the Office of Management and Budget shall
prepare and submit to the Director of the Office of Management and
Budget an audited financial statement for the preceding fiscal year,
covering all accounts and associated activities of each office, bureau,
and activity of the agency.
    ``(g) Not later than March 31 of 1995 and 1996, for executive
agencies not designated by the Director of the Office of Management and
Budget under subsection (f), the head of each executive agency
identified in section 901(b) of this title shall prepare and submit to
the Director of the Office of Management and Budget a financial
statement for the preceding fiscal year, covering--
        ``(1) each revolving fund and trust fund of the agency; and
        ``(2) to the extent practicable, the accounts of each office,
    bureau, and activity of the agency which performed substantial
    commercial functions during the preceding fiscal year.
    ``(h) For purposes of subsection (g), the term `commercial
functions' includes buying and leasing of real estate, providing
insurance, making loans and loan guarantees, and other credit programs
and any activity involving the provision of a service or thing for
which a fee, royalty, rent, or other charge is imposed by an agency for
services and things of value it provides.''.
    (b) Audits by Agencies.--Subsection 3521(f) of title 31, United
States Code, is amended to read as follows:
    ``(f)(1) For each audited financial statement required under
subsections (a) and (f) of section 3515 of this title, the person who
audits the statement for purpose of subsection (e) of this section
shall submit a report on the audit to the head of the agency. A report
under this subsection shall be prepared in accordance with generally
accepted government auditing standards.
    ``(2) Not later than June 30 following the fiscal year for which a
financial statement is submitted under subsection (g) of section 3515
of this title, the person who audits the statement for purpose of
subsection (e) of this section shall submit a report on the audit to
the head of the agency. A report under this subsection shall be
prepared in accordance with generally accepted government auditing
standards.''.
    (c) Governmentwide Financial Statement.--Section 331 of title 31,
United States Code, is amended by adding the following new subsection:
    ``(e)(1) Not later than March 31 of 1998 and each year thereafter,
the Secretary of the Treasury, in coordination with the Director of the
Office of Management and Budget, shall annually prepare and submit to
the President and the Congress an audited financial statement for the
preceding fiscal year, covering all accounts and associated activities
of the executive branch of the United States Government. The financial
statement shall reflect the overall financial position, including
assets and liabilities, and results of operations of the executive
branch of the United States Government, and shall be prepared in
accordance with the form and content requirements set forth by the
Director of the Office of Management and Budget.
    ``(2) The Comptroller General of the United States shall audit the
financial statement required by this section.''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and
                                               President of the Senate.

Output:
TABLE OF CONTENTS:
     Title I:  Limitation on Pay
     Title II:  Human Resource Management
     Title III:  Streamlining Management Control
     Title IV:  Financial Management
Government Management Reform Act of 1994 -
Title I:  Limitation on Pay
 - Amends the Legislative Reorganization Act of 1946 and other Federal law to limit annual cost of living adjustments for Members of Congress, the Vice President, senior Government officials, and Federal judges.
Title II:  Human Resource Management
 - Amends Federal civil service law to eliminate unlimited accumulation of annual leave by members of the Senior Executive Service.  Sets a limit on excess leave of 90 days per year.
Title III:  Streamlining Management Control
 - Authorizes the Director of OMB to publish annually in the President's Budget any recommendations for the consolidation, elimination, or adjustment in frequency and due dates of statutorily required periodic reports to the Congress or its committees.
Title IV:  Financial Management
 - Federal Financial Management Act of 1994 - Amends Federal law to require direct deposit of Federal wage, salary, and retirement payments by electronic funds transfer for recipients who begin receiving such payments on or after January 1, 1995.
(Sec. 403) Authorizes the establishment of a franchise fund in each of six executive agencies for the equipment and computer systems necessary for the maintenance and operation of administrative support services that may be performed more advantageously on a centralized basis.  Authorizes appropriations.
(Sec. 404) Authorizes the Director of the Office of Management and Budget (OMB) to consolidate or adjust the frequency and due dates of statutorily required periodic agency reports to OMB or the President and agency or OMB reports to the Congress under any laws for which OMB has financial management responsibility.
(Sec. 405) Requires the annual financial statements of executive agencies to be audited prior to submission to OMB.


Input:
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Civilian Facilities Closure and
Realignment Act of 1993''.

SEC. 2. PURPOSE.

    The purpose of this Act is to reduce unnecessary spending in the
Federal Government by closing or realigning duplicative, wasteful, or
otherwise unnecessary civilian facilities, including facilities that--
            (1) have a cost to the Federal Government that is out of
        proportion to the benefits provided through the facility; or
            (2) fail to further any legitimate goal or mission of the
        administering agency.

SEC. 3. THE CIVILIAN FACILITIES CLOSURE AND REALIGNMENT COMMISSION.

    (a) Establishment.--There is established an independent commission
to be known as the ``Civilian Facilities Closure and Realignment
Commission''.
    (b) Duties.--The Commission shall carry out the duties specified
for it in this Act.
    (c) Appointment.--(1)(A) The Commission shall be composed of seven
members appointed by the President, by and with the advice and consent
of the Senate.
    (B) No later than January 1, 1994, the President shall submit to
the Senate the nominations for appointment to the Commission.
    (2) In selecting individuals for nominations for appointments to
the Commission, the President should consult with--
            (A) the Speaker of the House of Representatives concerning
        the appointment of one member;
            (B) the majority leader of the Senate concerning the
        appointment of one member;
            (C) the minority leader of the House of Representatives
        concerning the appointment of one member; and
            (D) the minority leader of the Senate concerning the
        appointment of one member.
    (3) At the time the President nominates individuals for appointment
to the Commission, the President shall designate one such individual
who shall serve as Chairman of the Commission.
    (d) Terms.--Each member of the Commission shall serve until
December 31, 1995, and may only be removed by the President for cause.
    (e) Meetings.--(1) Each meeting of the Commission, other than
meetings in which classified information is to be discussed, shall be
open to the public.
    (2) All the proceedings, information, and deliberations of the
Commission shall be open, upon request, to any Member or committee of
the Congress.
    (f) Vacancies.--A vacancy in the Commission shall be filled in the
same manner as the original appointment, but the individual appointed
to fill the vacancy shall serve only for the unexpired portion of the
term for which the individual's predecessor was appointed.
    (g) Pay and Travel Expenses.--(1)(A) Each member, other than the
Chairman, shall be paid at a rate equal to the daily equivalent of the
minimum annual rate of basic pay payable for level IV of the Executive
Schedule under section 5315 of title 5, United States Code, for each
day (including travel time) during which the member is engaged in the
actual performance of duties vested in the Commission.
    (B) The Chairman shall be paid for each day referred to in
subparagraph (A) at a rate equal to the daily equivalent of the minimum
annual rate of basic pay payable for level III of the Executive
Schedule under section 5314 of title 5, United States Code.
    (2) Members shall receive travel expenses, including per diem in
lieu of subsistence, in accordance with sections 5702 and 5703 of title
5, United States Code.
    (h) Director of Staff.--(1) The Commission shall, without regard to
section 5311(b) of title 5, United States Code, appoint a Director who
has not served as a Federal employee during the one-year period
preceding the date of such appointment.
    (2) The Director shall be paid at the rate of basic pay payable for
level IV of the Executive Schedule under section 5315 of title 5,
United States Code.
    (i) Staff.--(1) Subject to paragraphs (2) and (3), the Director,
with the approval of the Commission, may appoint and fix the pay of
additional personnel.
    (2) The Director may make such appointments without regard to the
provisions of title 5, United States Code, governing appointments in
the competitive service, and any personnel so appointed may be paid
without regard to the provisions of chapter 51 and subchapter III of
chapter 53 of that title relating to classification and General
Schedule pay rates, except that an individual so appointed may not
receive pay in excess of the maximum annual rate of basic pay payable
for a position above GS-15 of the General Schedule.
    (3) Upon request of the Director, the head of any Federal
department or agency may detail any of the personnel of that department
or agency to the Commission to assist the Commission in carrying out
its duties under this Act.
    (4) The Comptroller General of the United States shall provide
assistance, including the detailing of employees, to the Commission in
accordance with an agreement entered into with the Commission.
    (j) Consultants and Property.--(1) The Commission may procure by
contract, to the extent funds are available, the temporary or
intermittent services of experts or consultants pursuant to section
3109 of title 5, United States Code.
    (2) The Commission may lease space and acquire personal property to
the extent funds are available.
    (k) Funding.--There are authorized to be appropriated to the
Commission such funds as are necessary to carry out its duties under
this Act. Such funds shall remain available until expended.
    (l) Termination.--The Commission shall terminate on December 31,
1995.

SEC. 4. RECOMMENDATIONS AND REPORT FOR CIVILIAN FACILITY CLOSURES AND
              REALIGNMENTS.

    (a) Agency Recommendations.--(1) No later than June 1, 1994, each
head of an executive agency as defined under section 105 of title 5,
United States Code (except for the Secretary of Defense with regard to
the Department of Defense) shall submit to the Commission
recommendations for closing or realigning civilian facilities
administered by such agency. The recommendations shall include a
statement providing rationale for the recommended closure or
realignment.
    (2) The Office of Management and Budget shall submit to the
Commission with each recommendation submitted under paragraph (1), an
estimate of the administrative costs and savings that would result from
the implementation of such recommendation for the 5 fiscal years
following such implementation.
    (b) Review and Recommendations by the Commission.--(1) After
receiving the recommendations from the heads of executive agencies
under subsection (a), the Commission shall conduct public hearings on
the recommendations. Such hearings shall be conducted in Washington,
D.C. and in affected regions throughout the United States.
    (2)(A) No later than June 1, 1995, the Commission shall submit to
the President a report containing--
            (i) the Commission's findings and conclusions based on a
        review and analysis of the recommendations made by the heads of
        executive agencies and from public hearings;
            (ii) the Commission's recommendations for closures and
        realignments of Federal facilities; and
            (iii) proposed legislation (containing specific language
        proposed to be enacted) to implement the Commission's
        recommendations.
    (B) Subject to subparagraph (C), in making its recommendations, the
Commission may make changes in any of the recommendations made by the
heads of executive agencies.
    (C) In the case of a change described in subparagraph (D) in the
recommendations made by the heads of executive agencies, the Commission
may make the change only if the Commission--
            (i) publishes a notice of the proposed change in the
        Federal Register not less than 30 days before submitting its
        recommendations to the President under subparagraph (A); and
            (ii) conduct a public hearing on the proposed change.
    (D) Subparagraph (C) shall apply to a change by the Commission in
the heads of executive agencies' recommendations that would--
            (i) add a facility to the list of facilities recommended by
        the applicable head of an executive agency for closure;
            (ii) add a facility to the list of facilities recommended
        by the applicable head of an executive agency for realignment;
        or
            (iii) increase the extent of a realignment of a particular
        facility recommended by the applicable head of an executive
        agency.
    (3) The Commission shall explain and justify in its report
submitted to the President under paragraph (2) any recommendation made
by the Commission that is different from the recommendations made by
the heads of the executive agencies under subsection (a). The
Commission shall submit a copy of such report to the Congress on the
same date on which it submits its recommendations to the President
under paragraph (2).
    (4) After the Commission submits recommendations to the President
under this subsection, the Commission shall promptly provide, upon
request, to any Member or committee of Congress information used by the
Commission in making its recommendations.
    (5) The Comptroller General of the United States shall--
            (A) assist the Commission, to the extent requested, in the
        Commission's review and analysis of the recommendations made by
        the heads of the executive agencies under subsection (c); and
            (B) submit to the Congress and to the Commission a report
        containing a detailed analysis of the heads of executive
        agencies' recommendations and selection process, including an
        assessment of whether such recommendations comply with the
        purposes of this Act.
    (c) Review by the President.--(1) No later than September 1, 1995,
the President shall approve or disapprove the report submitted under
subsection (b)(2)(A).
    (2) If the report is approved the President shall submit the report
to the Congress for legislative action under section 5.
    (3) If the President disapproves the report, the President shall
report specific issues and objections, including the reasons for any
changes recommended in the report, to the Commission and the Congress.
    (4) The Commission shall consider any issues or objections raised
by the President and may modify the report based on such issues and
objections. No later than 30 days after receipt of the President's
disapproval under paragraph (3), the Commission shall submit the final
report (as modified if modified) to the Congress for legislative action
under section 5.

SEC. 5. CONGRESSIONAL CONSIDERATION OF COMMISSION REPORT.

    (a) Definitions.--For purposes of this section--
            (1) the term ``implementation bill'' means only a bill
        which is introduced as provided under subsection (b), and
        contains the proposed legislation contained in the final report
        submitted to the Congress under section 4(c) (2) or (4) without
        modification; and
            (2) the term ``session day'' means a day that both the
        Senate and the House of Representatives are in session.
    (b) Introduction and Referral.--(1) On the first session day on or
immediately following the date on which a final report is submitted to
the Congress under section 4(c) (2) or (4), an implementation bill
shall be introduced--
            (A) in the Senate by the Majority Leader of the Senate, for
        himself, the Minority Leader of the Senate, or by Members of
        the Senate designated by the Majority Leader and Minority
        Leader of the Senate; and
            (B) in the House of Representatives by the Majority Leader
        of the House of Representatives, for himself and the Minority
        Leader of the House of Representatives, or by Members of the
        House of Representatives designated by the Majority Leader and
        Minority Leader of the House of Representatives.
    (2) The implementation bill introduced in the Senate shall be
referred concurrently to the Committee on Governmental Affairs of the
Senate, and other committees with jurisdiction. The implementation bill
introduced in the House of Representatives shall be referred
concurrently to the Committee on Government Operations of the House of
Representatives, and other committees with jurisdiction.
    (c) Discharge.--If the committee to which an implementation bill is
referred has not reported such bill by the end of the 15 session day
period beginning on the date of introduction of such bill, such
committee shall be, at the end of such period, discharged from further
consideration of such bill, and such bill shall be placed on the
appropriate calendar of the House involved.
    (d) Consideration.--(1) On or after the fifth session day after the
date on which the committee to which such a bill is referred has
reported, or has been discharged (under subsection (c)) from further
consideration of, such a bill, it is in order (even though a previous
motion to the same effect has been disagreed to) for any Member of the
respective House to move to proceed to the consideration of the
implementation bill (but only on the day after the calendar day on
which such Member announces to the House concerned the Member's
intention to do so). All points of order against the implementation
bill (and against consideration of the implementation bill) are waived.
The motion is highly privileged in the House of Representatives and is
privileged in the Senate and is not debatable. The motion is not
subject to amendment, or to a motion to postpone, or to a motion to
proceed to the consideration of other business. A motion to reconsider
the vote by which the motion is agreed to or disagreed to shall not be
in order. If a motion to proceed to the consideration of the
implementation bill is agreed to, the respective House shall
immediately proceed to consideration of the implementation bill without
intervening motion, order, or other business, and the implementation
bill shall remain the unfinished business of the respective House until
disposed of.
    (2) Debate on the implementation bill, and on all debatable motions
and appeals in connection therewith, shall be limited to not more than
10 hours, which shall be divided equally between the Majority Leader
and the Minority Leader or their designees. An amendment to the
implementation bill is not in order. A motion further to limit debate
is in order and not debatable. A motion to postpone, or a motion to
proceed to the consideration of other business, or a motion to recommit
the implementation bill is not in order. A motion to reconsider the
vote by which the implementation bill is agreed to or disagreed to is
not in order.
    (3) Immediately following the conclusion of the debate on an
implementation bill and a single quorum call at the conclusion of the
debate if requested in accordance with the rules of the appropriate
House, the vote on final passage of the implementation bill shall
occur.
    (4) Appeals from the decisions of the Chair relating to the
application of the rules of the Senate or the House of Representatives,
as the case may be, to the procedure relating to an implementation bill
shall be decided without debate.
    (e) Consideration by Other House.--(1) If, before the passage by
one House of an implementation bill of that House described in
subsection (a), that House receives from the other House an
implementation bill described in subsection (a), then the following
procedures shall apply:
            (A) The implementation bill of the other House shall not be
        referred to a committee and may not be considered in the House
        receiving it except in the case of final passage as provided in
        subparagraph (B)(ii).
            (B) With respect to an implementation bill described in
        subsection (a) of the House receiving such bill--
                    (i) the procedure in that House shall be the same
                as if no implementation bill had been received from the
                other House; but
                    (ii) the vote on final passage shall be on the
                implementation bill of the other House, except that if
                the implementation bill is a bill for the raising of
                revenue, the vote of final passage shall be upon the
                implementation bill which originates in the House of
                Representatives.
    (2) Upon disposition of the implementation bill received from the
other House, it shall no longer be in order to consider the
implementation bill that originated in the receiving House.
    (f) Rules of the Senate and House.--This section is enacted by
Congress--
            (1) as an exercise of the rulemaking power of the Senate
        and House of Representatives, respectively, and as such it is
        deemed a part of the rules of each House, respectively, but
        applicable only with respect to the procedure to be followed in
        that House in the case of an implementation bill described in
        subsection (a), and it supersedes other rules only to the
        extent that it is inconsistent with such rules; and
            (2) with full recognition of the constitutional right of
        either House to change the rules (so far as relating 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 that
        House.

SEC. 6. DISTRIBUTION OF ASSETS.

    Any proceeds from the sale of assets of any department or agency
resulting from the enactment of an Act under section 5 shall be--
            (1) applied to reduce the Federal deficit; and
            (2) deposited in the Treasury and treated as general
        receipts.

SEC. 7. ADDITIONAL APPROPRIATIONS BASED ON AGENCY SAVINGS.

    It is the sense of the Congress that--
            (1) in the fiscal year immediately following a
        recommendation submitted under section 4(a)(1) there should be
        appropriated to each agency an amount no less than 25 percent
        of the amount of the estimate of administrative savings
        determined under section 4(a)(2) applicable to such agency in
        the 3 fiscal years following the submission of the
        recommendation; and
            (2) the appropriated amount described under paragraph (1)
        should be--
                    (A) appropriated funds in addition to funds which
                would otherwise be appropriated to such agency if not
                for the provisions of this Act; and
                    (B) made available for expenditure at the
                discretion of the head of such agency to improve such
                agency's management, efficiency, or productivity.

SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as necessary to
carry out the provisions of this Act.

S 1187 IS----2

Output:
Civilian Facilities Closure and Realignment Act of 1993 - Establishes the Civilian Facilities Closure and Realignment Commission.
Requires the heads of executive agencies (except for the Secretary of Defense) to submit recommendations for closing or realigning civilian facilities to the Commission.  Directs the Office of Management and Budget to submit estimates of the administrative costs and savings that would result from the implementation of such recommendations to the Commission.
Requires the Commission to report its recommendations for closures and realignments of Federal facilities and proposed legislation to the President.  Provides for presidential approval of the report.
Sets forth procedures for congressional consideration of the proposed legislation.
Requires proceeds from the sale of any agency's assets resulting from closures or realignments to be applied to reduce the Federal deficit and deposited in the Treasury and treated as general receipts.
Expresses the sense of the Congress that:  (1) in the fiscal year immediately following the submission of an agency's recommendation, there should be appropriated to each agency at least 25 percent of the amount of estimated administrative savings applicable to such agency in the three fiscal years following such submission; and (2) the appropriated amount should be in addition to funds which would otherwise be appropriated if not for this Act and made available for expenditure to improve the agency's management, efficiency, or productivity.
Authorizes appropriations.


Input:
SECTION 1. SHORT TITLE, REFERENCES, AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Clean Air Act
Amendments of 1996''.
    (b) References.--Whenever in this Act an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a section or other
provision, the reference shall be considered to be made to a section or
other provision of the Clean Air Act.
    (c) Table of Contents.--The table of contents is as follows:

Sec. 1. Short title, references, and table of contents.
Sec. 2. Operating permits.
Sec. 3. Enhanced monitoring.
Sec. 4. Recognition of effective controls.
Sec. 5. Sanctions.
Sec. 6. Hazardous air pollutants.
Sec. 7. Voluntary controls adopted prior to nonattainment.
Sec. 8. Attainment date determinations.
Sec. 9. Attainment redesignations.
Sec. 10. Credit for episodic controls.
Sec. 11. Opt-in reformulated gas areas.
Sec. 12. NOx reductions for reformulated gas.
Sec. 13. Establishing national primary ambient air quality standards.
Sec. 14. Transportation conformity.
Sec. 15. Overwhelming transport.
Sec. 16. Automobile inspection and maintenance.
Sec. 17. Emissions trading.

SEC. 2. OPERATING PERMITS.

    (a) Definition of Applicable Requirement.--Section 501 (42 U.S.C.
7661) is amended by adding the following new paragraph after paragraph
(4):
            ``(5) Applicable requirement.--The term `applicable
        requirement' means any requirement promulgated by the
        Administrator pursuant to section 111 (42 U.S.C. 7411), section
        112 (42 U.S.C. 7412) with the exception of section 112(r),
        section 129 (42 U.S.C. 7429), Section 165 (42 U.S.C. 7475),
        subsections (e) and (f) of section 183 (42 U.S.C. 7511b),
        section 328 (42 U.S.C. 7627), title IV or title VI (unless the
        permitting authority determines that a requirement imposed
        pursuant to title VI need not be contained in a permit issued
        under this title) and any limitation on emissions or operations
        contained in a construction permit issued pursuant to Parts C
        or D of title I. The term `applicable requirement' also
        includes any other requirement provided for in an applicable
        state implementation plan, except that a requirement imposed
        pursuant to a State minor new source review program under
        section 110(a)(2) (42 U.S.C. 7410(a)(2)) shall not be
        considered an applicable requirement for purposes of this
        title. Notwithstanding this paragraph, any permitting authority
        may provide for the terms of permits issued under its minor new
        source review to be appended to or incorporated in an operating
        permit issued under this subchapter. Nothing in this paragraph
        shall affect the authority of any person to enforce any
        requirement imposed under any rule, permit, or implementation
        plan under this Act.''.
    (b) Assurance of Operating Flexibility.--(1) Section 502 (b)(10)
(42 U.S.C. 766la(b)(10)), is amended to read as follows:
            ``(10) The permitting authority may not require any source
        to obtain or modify a permit issued under this title for any
        physical or operational change at the source or for taking any
other action prior to the date 7 days after the physical or operational
change or other action is initiated. Nothing in this title shall be
construed to alter the requirements of any other title of this Act that
a permit be obtained before construction or modification of a source.
Nothing in this paragraph shall preclude any State from continuing to
impose any requirement or employ any procedure separate and apart from
the program required under this title, provided that such requirements
and procedures shall not be applicable requirements under this
title.''.
            (2) Section 502(b) (42 U.S.C. 766la(b)) is amended by
        adding the following paragraph after paragraph (10):
            ``(11) A provision giving major stationary sources the
        option of obtaining permits that would allow emissions
        increases and decreases at various units within the major
        stationary source without permit revisions if overall emissions
        limits for the major stationary source are not exceeded and
        preconstruction review is not required under title I. Nothing
        in this paragraph shall preclude any State from continuing to
        impose any requirement or employ any procedure separate and
        apart from the program required under this title, provided that
        such requirements and procedures shall not be applicable
        requirements under this title.''.
    (c) Sanctions and Federal Implementation.--Section 502(d) (42
U.S.C. 7661a(d)) is amended by inserting before the period at the end
of subparagraphs (A) and (B) of paragraph (2) and before the period at
the end of (3) the following: ``in any case in which the Administrator
determines that such failure will cause the State to fail to attain a
national primary ambient air quality standard by the applicable
attainment date''.
    (d) Permit Term.--Section 502(b)(5)(B) is amended by striking out
``5 years'' and inserting ``10 years''.

SEC. 3. ENHANCED MONITORING.

    Section 114(a) (42 U.S.C. 7414(a)(3)) is amended by striking
paragraph (3) and inserting the following:
            ``(3) The Administrator shall in the case of any person
        which is the owner or operator of a major source, and may, in
        the case of any other person, require submission of compliance
        certifications. Compliance certifications shall include (A)
        identification of the applicable requirement that is the basis
        of the certification, (B) the method used for determining the
        compliance status of the source, and (C) its compliance status.
        Compliance certifications and monitoring data shall be subject
        to subsection (c) of this section. Submission of a compliance
        certification shall in no way limit the Administrator's
        authorities to investigate or otherwise implement this Act.
            ``(4) Nothing in this section or in title V shall authorize
        the Administrator to revise significantly, or to require
        significant revision of, an existing compliance method without
        employing procedures, such as a rulemaking, to allow meaningful
        comment on that revision and to assess the effect of the
        revision on the stringency of the underlying emission standard
        or limitation. Nothing in this section or section 113 (42
        U.S.C. 7413) shall authorize the use of evidence other than the
        applicable compliance method or test method to establish a
        violation of the numerical component of an emission limitation
        or standard. For purposes of this paragraph, compliance method
        as test method shall meet the requirements contained in a
        regulation or permit for monitoring or testing to determine
        compliance with the applicable emission standard or limitation.
        Nothing in this subparagraph shall limit the authority of the
        Administrator to increase the stringency of controls or to
        impose new controls, as required under any other section of
        this Act.

SEC. 4. RECOGNITION OF EFFECTIVE CONTROLS.

    Section 302 (42 U.S.C. 7602) is amended by adding the following at
the end thereof:
    ``(aa) Potential To Emit.--The term `potential to emit' means the
maximum capacity of a stationary source to emit any regulated air
pollutant under its physical and operational design. Any physical or
operational limit on the capacity of a source to emit any regulated air
pollutant, including any limit enforceable under Federal, State, or
local law and including any pollution control equipment and
restrictions on hours of operation or on the type or amount of material
used, produced, stored, combusted or processed at such source shall be
treated as part of its design if the limitation is effective.''.

SEC. 5. SANCTIONS.

    The first sentence of section 179(a) (42 U.S.C. 7509(a)) is amended
by striking ``one of the sanctions referred to in subsection (b) shall
apply, as selected by the Administrator'' and all that follows down
through the period at the end thereof and inserting ``the Administrator
may apply one of the sanction referred to in subsection (b) if the
Administrator finds that such deficiency is likely to result in a
failure by the State to attain a national primary ambient air quality
standard by the applicable attainment date.''.

SEC. 6. HAZARDOUS AIR POLLUTANTS.

    Section 112(j)(6) is amended in the second sentence by striking all
after ``the Administrator shall revise such permit'' and inserting ``to
comply with such standard and such revision shall take effect on the
date 10 years after the date such standard is promulgated.''.

SEC. 7. VOLUNTARY CONTROLS ADOPTED PRIOR TO NONATTAINMENT.

    Section 182(b)(1)(C) is amended by adding the following at the end
thereof: ``Any measures that were not expressly required by this Act,
but that were voluntarily implemented, prior to the designation of the
area as a nonattainment area shall be credited as additional reductions
for purposes of any revised plan adopted for the area pursuant to this
part following designation of the area as an ozone nonattainment
area.''.

SEC. 8. ATTAINMENT DATE DETERMINATIONS.

    (a) Paragraph (5) Extensions.--Section 181(a)(5)(B) is amended to
read as follows:
            ``(B)(i) no more than one exceedance of the national
        ambient air quality standard for ozone has occurred in the area
        in the year preceding the Extension Year,
            ``(ii) the design value of the area (based on data from the
        year preceding the extension year) does not exceed the design
        value for the current classification of the area as specified
        in table 1 of paragraph (1), or
            ``(iii) the Administrator determines that infrequent
        episodic variations in air pollution levels caused by weather
        impact an area's ability to demonstrate attainment.''.
    (b) Additional Extension for Certain Areas.--Section 181(a) is
amended by adding the following at the end thereof:
            ``(6) Attainment followed by violation.--Upon application
        by any State, the Administrator may extend, for up to an
        additional 3 years, the date specified in Table I of paragraph
        (1) of this subsection and the dates specified in section
        182(b) regarding reasonable further progress, if--
                    ``(A) the area has in a 3-year period prior to the
                attainment date, qualified for redesignation as
                attainment for ozone, but
                    ``(B) subsequent to such 3-year period, the area
                has violated the ozone standard.
        No more than one extension may be issued under this paragraph
        for a single nonattainment area.''.

SEC. 9. ATTAINMENT REDESIGNATIONS.

    Section 107(d)(3) is amended as follows:
            (1) By amending the second sentence of subparagraph (D) to
        read as follows: ``The Administrator shall publish notice in
        the Federal Register of the Administrator's receipt of a
        request for redesignation. The Administrator shall also publish
        notice in the Federal Register of the Administrator's proposed
        approval or denial within 90 days after receipt of a complete
        State redesignation submittal and approve or deny such
        redesignation within 90 days thereafter.''.
            (2) By adding the following at the end of subparagraph (E):
``If a State requests the Administrator to redesignate an area as
attainment and submits information to the Administrator regarding such
area adequate to demonstrate compliance with clauses (ii) through (v)
and compliance (for a period of 3 years prior to the submission) with
clause (i) and if the Administrator fails to publish notice in the
Federal Register of the Administrator's proposed approval or denial of
such request within 90 days after receipt of a complete State
redesignation request or fails to approve or deny such request within
90 days thereafter, the area shall be deemed to be redesignated as an
attainment area by operation of law on the date 180 days after the
Administrator's receipt of a complete State redesignation request.''.

SEC. 10. CREDIT FOR EPISODIC CONTROLS.

    Section 110(a) is amended by inserting the following new
subparagraph immediately after paragraph (3):
    ``(4) In determining whether the provisions of any plan or plan
revision submitted under this Act are adequate to attain and maintain
any national primary or secondary ambient air quality standard, the
Administrator shall provide appropriate credits for plan provisions
which are designed to control air pollution only during certain periods
when levels of one or more air pollutants are, or are likely to be, at
higher levels than at other periods.''.

SEC. 11. OPT-IN REFORMULATED GAS AREAS.

    Section 211(k)(6)(A) of the Clean Air Act is amended as follows:
            (1) By inserting the following after the second sentence:
        ``No area included in the coverage of the prohibition set forth
        in paragraph (5) pursuant to an application under this
        paragraph may continue to be included in such prohibition after
        December 31, 1999, unless the Governor of the State in which
        such area is located has notified the Administrator of such
        continued inclusion prior to December 31, 1997, and the
        Administrator has published such notice in the Federal
        Register.''.
            (2) By adding the following at the end thereof: ``An area
        that has been included in the coverage of the prohibition set
        forth in paragraph (5) pursuant to an application under this
        paragraph may subsequently be excluded from such coverage
        pursuant to an application by the Governor to the
        Administrator, but such exclusion shall not take effect for a
        period of 1-year after the application is approved (in the case
        of Phase I Reformulated Gas Regulations) or 8-years after the
        date on which the area was first included in the coverage of
        such prohibition (in the case of Phase II Reformulated Gas
        Regulations). After an area is excluded from coverage pursuant
        to the preceding sentence, any subsequent inclusion (or
        subsequent exclusion) of the area from such coverage shall not
        take effect for a period of 1-year after the Governor's
        application is approved. A Governor's application shall be
        treated as approved under this subparagraph on the date on
        which the Administrator publishes notice of such approval in
        the Federal Register.''.

SEC. 12. NO<greek-KH> REDUCTIONS FOR REFORMULATED GAS.

    Section 211(k)(2)(A) of the Clean Air Act is amended by adding the
following at the end thereof: ``The Administrator may not require that
emissions of oxides of nitrogen (NO<greek-KH>) from baseline vehicles
when using the reformulated gasoline be less than emissions from such
vehicles when using baseline gasoline.''.

SEC. 13. ESTABLISHING NATIONAL PRIMARY AMBIENT AIR QUALITY STANDARDS.

    Section 109 of the Clean Air Act is amended as follows:
            (1) At the end of subsection (a) add the following:
    ``(3) Within two years after the enactment of this paragraph the
Administrator shall promulgate national primary ambient air quality
goals and revised national primary ambient air quality standards.''.
            (2) In subsection (b)(1), strike ``prescribed, under
        subsection (a)'' and insert ``prescribed under subsection
        (a)(1)''.
            (3) Strike the last sentence of subsection (a)(1) and
        insert ``The national primary ambient air quality goals
        promulgated under subsection (a)(3) shall set forth a level of
        ambient air quality, based on such criteria and allowing an
        adequate margin of safety, that is requisite to protect the
        public health. In establishing such level the Administrator
        shall not take into account infrequent episodic variations in
        air pollution levels that are caused by weather. The revised
        national primary ambient air quality standards promulgated
        under subsection (a)(3) shall be as close to such national
        primary ambient air quality goals as feasible such that the
        incremental costs of attaining such standard do not exceed the
        incremental benefits of attaining the standard.''.

SEC. 14. TRANSPORTATION CONFORMITY.

    Section 176 is amended to read as follows:

``SEC. 176. TRANSPORTATION CONFORMITY.

    ``Beginning on November 15, 1996, and at 4-year intervals
thereafter, each State shall submit a revised inventory and performance
plan for review by the Administrator. Such plan shall include a
certification by the State that the plan has been developed so as to
meet air quality goals. The applicability of a State approved
implementation plan shall become effective for the purposes of this
section upon signature of the Governor and shall continue unless
disapproved by the Administrator within 30 days. The form and content
of the inventory and performance plan shall solely be within the
purview of each State and the Administrator shall not disapprove such
plan unless the Administrator determines that a State has developed an
inventory and plan without adhering to such State's own processes and
procedures. If not disapproved within 30 days, such inventories and
plans shall be considered approved. Nothing in this section shall
require the submission of an inventory or plan more than once every 4
years.''.

SEC. 15. OVERWHELMING TRANSPORT.

    Section 181 is amended by adding the following at the end thereof:
    ``(d) Overwhelming Transport.--If, based on photochemical grid
modeling demonstrations or any other analytical method determined by
the Administrator to be as effective, the Administrator determines that
the area is a downwind nonattainment area receiving ozone or ozone
precursor transport from outside the area and control of ozone
concentrations is beyond the ability of the area to control because
volatile organic compounds and oxides of nitrogen from sources within
such area do not make a significant contribution to ozone
concentrations in such area (or in any other ozone nonattainment area),
the Administrator may redesignate the area as attainment or as having a
lower classification.''.

SEC. 16. AUTOMOBILE INSPECTION AND MAINTENANCE.

    Section 182(c)(3)(C)(iv) is amended by inserting ``safety
inspection approval or'' after ``denial of''.

SEC. 17. EMISSIONS TRADING.

    Section 110 is amended by inserting the following new subsection
immediately before subsection (f):
    ``(e) Emissions Trading Programs.--The Administrator shall approve
any emissions trading program submitted under this section as part of
an applicable implementation plan or implementation plan revision for
any area unless the Administrator determines that such program would
result in the failure of a nonattainment area to attain the national
primary or secondary ambient air quality standards by the applicable
attainment date or in the failure of an area that has been designated
as attainment to maintain such standards. The Administrator shall not
be required to approve any plan which will result in increased
emissions (beyond the maintenance plan level) of the criteria pollutant
for which the area is classified as nonattainment.''.

Output:
Clean Air Act Amendments of 1996 - Amends the Clean Air Act to define permit program "applicable requirements."  Revises Environmental Protection Agency (EPA) standards for permit programs regarding:  (1) permitting authorities' requirements that a source obtain or modify a permit for a physical or operational change or another action prior to a date seven days after the change or action has begun; and (2) major stationary source permits that allow emissions increases and decreases at various units within the source without permit revision if certain overall emissions standards are met. Doubles the allowable term of a permit.
Requires, before permit program-related sanctions are imposed, a determination by the EPA Administrator that such failure will cause the State to fail to attain a national primary ambient air quality standard by the applicable date.
(Sec. 3) Repeals the authority of the Administrator to require enhanced monitoring of major stationary sources and revises compliance certification and method requirements.
(Sec. 4) Adds a definition of "potential to emit" to treat physical or operational limits on a source's capacity to emit regulated air pollutants as part of the source's design if the limitation is effective.
(Sec. 5) Requires, before sanctions are imposed for non-submittal, disapproval, or failure to implement requirements of a plan for a nonattainment area, a determination that the deficiency is likely to result in a failure by the State to attain a national primary ambient air quality standard by the applicable date.  Makes the imposition of sanctions discretionary.
(Sec. 6) Modifies the procedure for permit revision where the Administrator promulgates a hazardous air pollutant emission standard, after the permit's issuance, that would be applicable to the source in lieu of the limitation established by permit.
(Sec. 7) Provides, with respect to plans for Moderate ozone nonattainment areas, for the crediting as reductions of certain voluntary measures implemented before designation as a nonattainment area.
(Sec. 8) Expands the factors allowing extension, upon State application, of the primary standard attainment date for ozone.  Allows extension for certain areas that qualified for attainment designation but subsequently violated the ozone standard.
(Sec. 9) Shortens the time period and modifies the procedure for redesignation, upon State application, of an air quality control region.
(Sec. 10) Requires the Administrator, when evaluating the adequacy of State implementation plans for national primary and secondary ambient air quality standards, to credit provisions designed to control air pollution only during certain periods during which pollutant levels are elevated.
(Sec. 11) Imposes limitations on the inclusion, at a State's option, of ozone nonattainment areas in the prohibition requiring the sale of reformulated gasoline.
(Sec. 12) Prohibits the Administrator from requiring that nitrogen oxide emissions from baseline (representative) vehicles using reformulated gasoline be less than emissions from such vehicles using "baseline" gasoline.
(Sec. 13) Requires the promulgation of:  (1) national primary ambient air quality goals that discount certain episodic weather-related variations; and (2) revised standards, using a cost-benefit analysis, as close to the air quality goals as is feasible.
(Sec. 14) Removes limitations on Federal assistance for transportation activities not conforming to a State implementation plan.  Considers the form and content of a State inventory and performance plan solely within the purview of a State and declares such a plan effective upon the Governor's approval unless disapproved by EPA within 30 days.  Makes the standard for approval the plan's adherence to the State's own processes and procedures.
(Sec. 15) Allows the upgrading of an ozone nonattainment area if the Administrator makes a specified determination concerning the inability of the area to control ozone concentrations resulting from downwind transport of ozone or precursors from another area.
(Sec. 16) Requires inclusion, in an enhanced vehicle inspection and maintenance program for a Serious ozone nonattainment area, of enforcement through denial of safety inspection approval (as an alternative to denial of registration, as under current law).
(Sec. 17) Requires the Administrator to approve an emissions trading program as part of an implementation plan unless certain attainment failures would result.