HR 3556

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IN THE HOUSE OF REPRESENTATIVES

March 25, 1998

Mr. Shays introduced the following bill; which was referred to the Committee on National Security, and in addition to the Committees on International Relations, Science, Agriculture, Transportation and Infrastructure, Resources, Education and the Workforce, Veterans’ Affairs, and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To reduce Federal spending in several programs.

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

TITLE I—DEFENSE

SEC. 101. REDUCTION OF NUCLEAR DELIVERY SYSTEMS.

The Secretary of Defense shall reduce the strategic nuclear force of the Department of Defense by fiscal year 2004 to include a maximum of 300 Minuteman III intercontinental ballistic missiles.

SEC. 102. TERMINATION OF PRODUCTION OF TRIDENT II (D-5) MISSILES AND RETIREMENT OF TRIDENT I SUBMARINES.

(a) Termination of Trident II Missile Production.—No funds may be appropriated to the Department of Defense for any fiscal year after fiscal year 1998 for production of Trident II (D-5) missiles for the Department of the Navy.

(b) Retirement of Trident I Submarines.—The Secretary of Defense shall retire eight Trident I submarines during fiscal years 2001 through 2004.

SEC. 103. REDUCTION IN THEATER MISSILE DEFENSE PROGRAMS.

(a) Termination of Programs.—The Secretary of Defense shall reduce theater missile defense programs by terminating development of—

(1) the Navy sea-based area theater missile defense system;

(2) the Army Medium Extended Air Defense System (MEADS);

(3) the Air Force airborne laser for destruction of missiles system; and

(4) the Space and Missile Tracking System (Brilliant Eyes).

(b) Prohibition on Funding for Development of Arrow Missile for Israel.—No funds may be appropriated to the Department of Defense for any fiscal year after fiscal year 1998 to provide assistance to Israel for development of the Arrow missile.

SEC. 104. TERMINATION OF THE MARINE CORPS V-22 OSPREY AIRCRAFT PROGRAM.

No funds may be appropriated to the Department of Defense for any fiscal year after fiscal year 1998 for research, development, test, and evaluation or for procurement for the Marine Corps V-22 Osprey aircraft program.

SEC. 105. RETIREMENT OF EXCESS KC-135 TANKERS.

The Secretary of Defense shall retire 20 Air Force KC-135E aircraft during each of fiscal years 1999 through 2003.

SEC. 106. ASSIGNMENT OF WARTIME FUNCTION TO MILITARY PERSONNEL IN TRAINING OR TRANSIT.

The Secretary of Defense shall assign to a unit of the Armed Forces each member of the Armed Forces—

(1) who is in transit during a scheduled move from one military installation to another military installation; or

(2) who is undergoing military training other than basic training.

SEC. 107. RECOVERY OF FULL COST OF MILITARY EXPORTS.

(a) Recoupment of Certain Nonrecurring Costs in Commercial Export Sales of Major Defense Equipment.—

(1) In general.—Section 38 of the Arms Export Control Act (22 U.S.C. 2778) is amended by adding at the end the following new subsection:

“(i)(1) Any sale involving the export of major defense equipment pursuant to a license or other approval granted under this section shall include an appropriate charge for a proportionate amount of the nonrecurring costs incurred by the United States in the research, development, and production of such equipment. Such charge shall be comparable to the charge imposed pursuant to section 21(e)(1)(B) of this Act relating to government-to-government sales of major defense equipment.

“(2) The charge provided for in paragraph (1) shall not apply with respect to major defense equipment that is wholly paid for from funds transferred under section 503(a)(3) of the Foreign Assistance Act of 1961 (22 U.S.C. 2311(a)(3)) or from funds made available on a grant or other nonrepayable basis under section 23 of this Act.”.

(2) Effective date.—Section 38(i) of the Arms Export Control Act, as added by paragraph (1), applies with respect to major defense equipment sold pursuant to a contract entered into on or after the date of the enactment of this Act.

(b) Recovery of Certain Administrative Expenses in Connection With Foreign Military Sales.—Section 43(b) of the Arms Export Control Act (22 U.S.C. 2792(b)) is amended—

(1) by adding “and” at the end of paragraph (1);

(2) by striking “; and” at the end of paragraph (2) and inserting a period; and

(3) by striking paragraph (3).

TITLE II—OTHER DISCRETIONARY ACCOUNTS

SEC. 201. TERMINATION OF SPACE STATION PROGRAM.

(a) Termination.—The Administrator of the National Aeronautics and Space Administration shall terminate the participation of the United States in the International Space Station program.

(b) Termination Costs.—There are authorized to be appropriated to the Administrator of the National Aeronautics and Space Administration $700,000,000 for fiscal year 1999 for costs associated with carrying out subsection (a).

SEC. 202. ELIMINATION OF LOAN SUBSIDIES AVAILABLE UNDER THE RURAL ELECTRIFICATION ACT OF 1936.

(a) In General.—Title I of the Rural Electrification Act of 1936 (7 U.S.C. 901-946) is amended by adding at the end the following:

“SEC. 19. INTEREST RATE ON LOANS AND ADVANCES UNDER THIS ACT.

“The rate of interest on any loan made under this Act on or after the date of the enactment of this section, and the rate of interest on any advance made under this Act on or after such date under loan commitments made at any time, shall equal the coupon equivalent yield on obligations of the Treasury of the United States of comparable maturity, at the most recent auction of such obligations by the Department of the Treasury.

“SEC. 20. LOAN ORIGINATION FEES.

“(a) In General.—The Secretary and the Governor of the telephone bank shall charge and collect a loan origination fee, in an amount determined by use of the schedule prescribed under subsection (b), from each borrower to whom a loan is made under this Act on or after the date of the enactment of this section.

“(b) Fee Schedule.—The Secretary shall prescribe a schedule of loan origination fees to be collected under subsection (a), which shall be calculated so as to result in the collection of amounts sufficent to cover the cost of defaults on loans made under this Act on or after the date of the enactment of this section.”.

(b) Conforming Amendments.—

(1) Section 305(a) of such Act (7 U.S.C. 935(a)) is amended by striking “and at the interest rates hereinafter provided”.

(2) Section 305(c)(1) of such Act (7 U.S.C. 935(c)(1)) is amended by striking “of 5 percent per year” each place it appears and inserting “determined pursuant to section 19”.

(3) Section 305(c)(2)(A) of such Act (7 U.S.C. 935(c)(2)(A)) is amended—

(A) by striking “the interest rate described in subparagraph (B)” and inserting “an interest rate determined pursuant to section 19”; and

(B) by striking “(C)” and inserting “(B)”;

(4) Section 305(c)(2)(C)(i) of such Act (7 U.S.C. 935(c)(2)(C)(i)) is amended by striking “subparagraph (B)” and inserting “section 19”.

(5) Section 305(c)(2) of such Act (7 U.S.C. 935(c)(2)) is amended by striking subparagraph (B) and redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C), respectively.

(6) Section 305(d)(1)(A) of such Act (7 U.S.C. 935(d)) is amended by striking “of 5 percent per year” and inserting “determined pursuant to section 19”.

(7) Section 305(d)(2) of such Act (7 U.S.C. 935(d)(2)) is amended by striking “equal to the then current cost of money to the Government of the United States for loans of similar maturity, but not more than 7 percent per year,” and inserting “determined pursuant to section 19”.

(8) Section 305(d)(3)(C) of such Act (7 U.S.C. 935(d)(3)(C)) is amended by striking “408(b)(4)(C)” and inserting “408(b)(3)(C)”.

(9) Section 306C(c)(1) of such Act (7 U.S.C. 936c(c)(1)) is amended—

(A) by striking “the interest rate described in paragraph (2)” and inserting “an interest rate determined pursuant to section 19”; and

(B) by striking “(3)” and inserting “(2)”.

(10) Section 306C(c)(3)(A) of such Act (7 U.S.C. 936c(c)(3)(A)) is amended by striking “paragraph (2)” and inserting “section 19”.

(11) Section 306C(c)(4) of such Act (7 U.S.C. 936c(c)(4)) is amended by striking “(3)” and inserting “(2)”.

(12) Section 306C(c) of such Act (7 U.S.C. 936c(c)) is amended by striking paragraph (2) and redesignating paragraphs

(3) and (4) as paragraphs (2) and (3), respectively.

(13) Section 306C of such Act (7 U.S.C. 936c) is amended by striking subsection (d).

(14) Section 310 of such Act (7 U.S.C. 940) is amended by striking “provided in section 305” and inserting “determined pursuant to section 19”.

(15) Section 408(b)(2) of such Act (7 U.S.C. 948(b)(2)) is amended by striking “, however, to” and inserting “to section 19 and”.

(16) Section 408(b) of such Act (7 U.S.C. 948(b)) is amended by striking paragraph (3) and redesignating paragraphs

(4) through (8) as paragraphs (3) through (7), respectively.

(17) Section 408(e) of such Act (7 U.S.C. 948(e)) is amended by striking the 1st and 2nd sentences.

SEC. 203. ELIMINATION OF BELOW-COST SALES OF TIMBER FROM NATIONAL FOREST SYSTEM LANDS.

The National Forest Management Act of 1976 is amended by inserting after section 14 (16 U.S.C. 472a) the following new section:

“SEC. 14A. ELIMINATION OF BELOW-COST TIMBER SALES FROM NATIONAL FOREST SYSTEM LANDS.

“(a) Requirement That Sale Revenues Exceed Costs.—On and after October 1, 2003, in appraising timber and setting a minimum bid for trees, portions of trees, or forest products located on National Forest System lands proposed for sale under section 14 or any other provision of law, the Secretary of Agriculture shall ensure that the estimated cash returns to the United States Treasury from each sale exceed the estimated costs to be incurred by the Federal Government in the preparation of the sale or as a result of the sale.

“(b) Costs To Be Considered.—For purposes of estimating under this section the costs to be incurred by the Federal Government from each timber sale, the Secretary shall assign to the sale the following costs:

“(1) The actual appropriated expenses for sale preparation and harvest administration incurred or to be incurred by the Federal Government from the sale and the payments to counties to be made as a result of the sale.

“(2) A portion of the annual timber resource planning costs, silvicultural examination costs, other resource support costs, road design and construction costs, road maintenance costs, transportation planning costs, appropriated reforestation costs, timber stand improvement costs, forest genetics costs, general administrative costs (including administrative costs of the national and regional offices of the Forest Service), and facilities construction costs of the Federal Government directly or indirectly related to the timber harvest program conducted on National Forest System lands.

“(c) Method of Allocating Costs.—The Secretary shall allocate the costs referred to in subsection (b)(2) to each unit of the National Forest System, and each proposed timber sale in such unit, on the basis of harvest volume.

“(d) Transitional Requirements.—To ensure the elimination of all below-cost timber sales by the date specified in subsection (a), the Secretary shall progressively reduce the number and size of below-cost timber sales on National Forest System lands as follows:

“(1) In fiscal years 1999 and 2000, the quantity of timber sold in below-cost timber sales on National Forest System lands shall not exceed 75 percent of the quantity of timber sold in below-cost timber sales in the preceding fiscal year.

“(2) In fiscal year 2001, the quantity of timber sold in below-cost timber sales on National Forest System lands shall not exceed 65 percent of the quantity of timber sold in below- cost timber sales in fiscal year 1998.

“(3) In fiscal years 2002 and 2003, the quantity of timber sold in below-cost timber sales on National Forest System lands shall not exceed 50 percent of the quantity of timber sold in below-cost timber sales in the fiscal year 2001.

“(e) Below-Cost Timber Sale.—For purposes of this section, the term ‘below-cost timber sale’ means a sale of timber in which the costs to be incurred by the Federal Government exceed the cash returns to the United States Treasury.”.

SEC. 204. ELIMINATION OF THE FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

Title VII of the Agricultural Trade Act of 1978 (7 U.S.C. 5712 et seq.) is repealed.

SEC. 205. ELIMINATION OF COCHRAN FELLOWSHIP PROGRAM.

Section 1543 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 3293) is repealed.

SEC. 206. ELIMINATION OF SUPPORT FOR PRODUCERS AND USERS OF COMMERCIAL AIRLINERS.

The Administrator of the National Aeronautics and Space Administration shall not obligate any funds for the Advanced Subsonic Technology Program, High-Speed Research, or the National Aeronautics Facility.

SEC. 207. ELIMINATION OF APPALACHIAN REGIONAL COMMISSION.

Effective September 30, 1998, the Appalachian Regional Development Act of 1965 (Public Law 89-4) is repealed.

SEC. 208. ELIMINATION OF FEDERAL FUNDING FOR TVA.

Section 27 of the Tennessee Valley Authority Act of 1933 (16 U.S.C. 831z) is amended to read as follows: “Sec. 27. No appropriations are authorized to carry out the provisions of this Act after September 30, 1998.”.

TITLE III—ENTITLEMENTS

SEC. 301. SALE AND PURCHASE OF POWER BY FEDERAL POWER MARKETING ADMINISTRATIONS.

(a) Market Based Rates.—Notwithstanding sections 4 and 5 of the Bonneville Project Act of 1937 (16 U.S.C. 832), sections 9 and 10 of the Federal Columbia River Transmission System Act (16 U.S.C. 838 and following), the Act of August 31, 1964 (16 U.S.C. 837-837h), section 7 of the Pacific Northwest Electric Power Planning and Conservation Act (16 U.S.C. 839-839h), section 5 of the Flood Control Act of 1944, the Department of Energy Organization Act (Public Law 93-454), or any other authority of law, for any contract or other arrangement entered into by any Federal Power Marketing Administration after October 1, 1998 for the sale of electric power, notwithstanding any other provision of law—

(1) the rate for the sale of such power shall be the market rate established by competitive bidding and no discount or special rate shall be provided to any purchaser; and

(2) no public body or cooperative, Federal agency, investor-owned utility, direct service industrial customer, or other entity shall be entitled to any preference or priority right to contract for or otherwise purchase such power. Nothing in this subsection shall affect any contract entered into before October 1, 1998. Notwithstanding the Federal Power Act or section 7 of the Pacific Northwest Electric Power Planning and Conservation Act (16 U.S.C. 839-839h), the Federal Energy Regulatory Commission shall not be authorized or required to approve or confirm any rate for the sale of electric power or transmission services established under this subsection.

(b) Termination of Residential Exchange Program.—Section 5(c) of the Pacific Northwest Power Planning and Conservation Act (16 U.S.C. 839-839h) shall not apply to any contract or other arrangement for the purchase or sale of electric power entered into after October 1, 1998.

(c) Contract Renewal.—After the enactment of this Act, no Federal Power Marketing Administration may enter into or renew any power marketing contract for a term that exceeds 5 years.

SEC. 302. ELIMINATION OF MARKET ACCESS PROGRAM.

Section 203 of the Agricultural Trade Act of 1978 (7 U.S.C. 5623) is repealed.

SEC. 303. INCREASE IN ASSESSMENTS UNDER TOBACCO PRICE SUPPORT PROGRAM.

(a) Increase in Assessment Rate.—Section 106(g)(1) of the Agricultural Act of 1949 (7 U.S.C. 1445(g)(1)) is amended—

(1) in subparagraph (A), by striking “.5 percent” and inserting “1 percent”; and

(2) in subparagraph (B), by striking “1 percent” and inserting “2 percent”.

(b) Duration of Assessments.—Such section is further amended by striking “1998 crops” and inserting “2003 crops”.

SEC. 304. PAYMENT OF IN-SCHOOL INTEREST BY STUDENT LOAN BORROWERS.

Section 428(b)(7) of the Higher Education Act of 1965 (20 U.S.C. 1078(b)(7)) is amended—

(1) in subparagraph (A), by striking “In the case” and inserting “Except as provided in subparagraph (D), in the case”; and

(2) by adding at the end the following new subparagraph:

“(D) In the case of a loan made under section 427 or 428 after October 1, 1998, the repayment period shall exclude any period of authorized deferment or forbearance, and shall begin as described in clause (i) or (ii) of subparagraph (A), but interest shall begin to accrue or be paid by the borrower at the beginning of the 6 month period described in such clause

(i).”.

SEC. 305. COPAYMENT FOR PRESCRIPTION MEDICATIONS FURNISHED TO VETERANS BY THE DEPARTMENT OF VETERANS AFFAIRS.

(a) Increase in Copyament.—Subsection (a)(1) of 1722A of title 38, United States Code, is amended by striking “$2” and inserting “$5”.

(b) Extension of Copayment Requirement.—Subsection (c) of such section is amended by striking “September 30, 2002” and inserting “September 30, 2003”. <all>