SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Somalia Stabilization Act of 2013''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) Since the collapse of the Siad Barre regime in 1991,
        Somalia has struggled to rebuild a government and assert order
        and control over warlords, clan militias, and extremist groups.
            (2) The lack of functioning state and governing structures
        led to chronic humanitarian need within Somalia and enabled
        terrorist groups, maritime crime, illicit trafficking, and mass
        refugee flows to flourish.
            (3) In 2007, the Ethiopian military ousted the Islamic
        Courts Union and the United Nations authorized the African
        Union to deploy a peacekeeping force to Somalia, the African
        Union Mission to Somalia (AMISOM), in order to support the
        Transitional Federal Government to establish order in Somalia.
        AMISOM currently consists of troops from Burundi, Djibouti,
        Kenya, Sierra Leone, and Uganda.
            (4) In 2008, Harakat al-Shabaab al-Mujahideen (al-Shabaab)
        was designated a Foreign Terrorist Organization and a Specially
        Designated Global Terrorist entity by the United States
        Government.
            (5) In 2010, al-Shabaab took control of southern and
        central Somalia and instituted strict Sharia law.
            (6) In July 2010, Al-Shabaab retaliated against a
        contributor to AMISOM by carrying out an attack in Kampala,
        Uganda, which killed 74 people and injured 70 others.
            (7) In 2010, in response to growing al-Shabaab dominance
        and brutality, the AMISOM mandate was expanded to directly
        target and counter al-Shabaab in Somalia.
            (8) In 2011 and 2012, when many parts of the country were
        suffering from severe food insecurity and famine, al-Shabaab
        denied humanitarian access to its residents, resulting in the
        death of close to 260,000 people and acute food insecurity for
        millions.
            (9) In 2011, the Kenyan Defense Force joined AMISOM, to
        help take control of urban areas like Mogadishu and Kismayo
        from al-Shabaab control.
            (10) In 2012, improved security in much of urban Somalia
        enabled the Transitional Federal Government to complete a draft
        constitution and end its transitional term.
            (11) In 2012, a regionally representative Somali
        constituent assembly elected a new Federal parliament, which in
        turn elected President Hassan Sheikh Mohamud.
            (12) The United States, Arab and European countries, the
        United Nations, and the African Union officially recognized the
        new Somali government, citing the process that created it as
        being the most credible and inclusive process to date.
            (13) On March 6, 2013, the United Nations Security Council
        passed Resolution 2093, creating a new exemption to the 21-
        year-old arms embargo for a period of 12 months, to allow for
        ``deliveries of weapons or military equipment or the provision
        of advice, assistance or training, intended solely for the
        development of the National Security Forces of the Federal
        Government of Somalia'', and calling for the training,
        equipping, and capacity-building of Somali Security Forces,
        including both its armed forces and police, with special focus
        on the development of infrastructure to ``ensure the safe
        storage, registration, maintenance and distribution of military
        equipment,'' and ``procedures and codes of conduct . . . for
        the registration, distribution, use, and storage of weapons''.
            (14) On May 2, 2013, the United National Security Council
        passed Resolution 2102, establishing the United Nations
        Assistance Mission in Somalia (UNSOM) under the leadership of a
        Special Representative of the Secretary-General to support the
        Government of Somalia with peace-building, state-building and
        governance, as well as the coordination of international
        assistance.
            (15) Though greeted with great optimism, the Government of
        Somalia has run into many challenges, which has stalled its
        efforts to finalize the constitution, guide the structure of
        the new state, or provide services to the population.
            (16) President Hassan Sheikh Mohamud and his government
        have committed to the completion of these tasks and to holding
        a constitutional referendum and national election by 2016.
            (17) On September 16, 2013, the international community and
        a high level Somali delegation endorsed a compact based on the
        ``New Deal Strategy for Engagement in Fragile States.'' Donors
        pledged $2,400,000,000 over three years to support Somali
        development priorities, including $69,000,000 from the United
        States.
            (18) Al Shabaab continues to use terrorist tactics to
        attack soft targets. On September 21-24, 2013, al-Shabaab
        perpetrated an attack on the Westgate mall in Nairobi, Kenya,
        killing at least 67 people.

SEC. 3. SENSE OF CONGRESS.

    It is the sense of Congress that the United States should--
            (1) support the Somali Federal Government, regional
        administrations, Federal units, and people in their ongoing
        efforts to consolidate political gains and develop credible,
        transparent, and representative government systems and
        institutions, and foster complementary processes at the local,
        regional, and national levels;
            (2) continue to support African-led regional efforts to
        improve security and stability in Somalia, including through
        the African Union Mission to Somalia (AMISOM) and the United
        Nations Assistance Mission in Somalia (UNSOM);
            (3) support the people and Government of Somalia to develop
        professional and regionally and ethnically representative
        Somali security forces that are capable of maintaining and
        expanding security within Somalia, confronting international
        security threats such as terrorism, and preventing human rights
        abuses;
            (4) continue to provide lifesaving humanitarian assistance
        as needed, while bolstering resilience and building a
        foundation for sustained, inclusive development for the people
        of Somalia; and
            (5) carry out all diplomatic, economic, intelligence,
        military, and development activities in Somalia within the
        context of a comprehensive strategy coordinated through an
        interagency process.

SEC. 4. REQUIREMENT OF A STRATEGY TO SUPPORT THE CONSOLIDATION OF
              SECURITY AND GOVERNANCE GAINS IN SOMALIA.

    (a) Requirement for Strategy.--Not later than 120 days after the
date of the enactment of this Act, the President shall submit to the
appropriate committees of Congress a strategy to guide future United
States action in support of the Government and people of Somalia to
foster economic growth and opportunity, counter armed threats to
stability, and develop credible, transparent, and representative
government systems and institutions.
    (b) Content of Strategy.--The strategy required under subsection
(a) should include the following elements:
            (1) A clearly stated policy toward Somalia on supporting
        the consolidation of political gains at the national level,
        while also encouraging and supporting complementary processes
        at the local and regional levels.
            (2) Measures to support the development goals identified by
        the people and Government of Somalia.
            (3) Plans for strengthening efforts by the Government of
        Somalia, the African Union, and regional governments to
        stabilize the security situation within Somalia and further
        degrade al-Shabaab's capabilities, in order to enable the
        eventual transfer of security operations to Somali security
        forces capable of--
                    (A) maintaining and expanding security within
                Somalia;
                    (B) confronting international security threats; and
                    (C) preventing human rights abuses.
            (4) Plans for supporting the development and
        professionalization of regionally and ethnically representative
        Somali security forces, including the infrastructure and
        procedures required to ensure chain of custody and the safe
        storage of military equipment and an assessment of the benefits
        and risks of the provision of weaponry to the Somali security
        forces by the United States.
            (5) A description of United States national security
        objectives addressed through military-to-military cooperation
        activities with Somali security forces.
            (6) A description of security risks to United States
        personnel conducting security cooperation activities within
        Somalia and plans to assist the Somali security forces in
        preventing infiltration and insider attacks, including through
        the application of lessons learned in United States military
        training efforts in Afghanistan.
            (7) A description of United States tools for monitoring and
        responding to violations of the United Nations Security Council
        arms embargo, charcoal ban, and other international agreements
        affecting the stability of Somalia.
            (8) A description of mechanisms for coordinating United
        States military and non-military assistance with other
        international donors, regional governments, and relevant
        multilateral organizations.
            (9) Plans to increase United States diplomatic engagement
        with Somalia, including through the future establishment of an
        embassy or other diplomatic posts in Mogadishu.
            (10) Any other element the President determines
        appropriate.
    (c) Reports.--Not later than 180 days from the submission of the
strategy required under subsection (a), and annually thereafter for
three years, the President shall submit to the appropriate committees
of Congress an update on implementation of the strategy and progress
made in Somalia in security, stability, development, and governance.
    (d) Form.--The strategy under this section shall be submitted in
unclassified form, but may include a classified annex. The reports may
take the form of a briefing, unclassified report, or unclassified
report with a classified annex.
    (e) Appropriate Committees of Congress Defined.--In this section,
the term ``appropriate committees of Congress'' means--
            (1) the Committee on Appropriations, the Committee on Armed
        Services, the Committee on Foreign Relations, and the Select
        Committee on Intelligence of the Senate; and
            (2) the Committee on Appropriations, the Committee on Armed
        Services, the Committee on Foreign Affairs, and the Permanent
        Select Committee on Intelligence of the House of
        Representatives.

Summary: Somalia Stabilization Act of 2013 - Expresses the sense of Congress that the United States should: (1) support the Somali Federal Government, regional administrations, federal units, and people in their efforts to consolidate political gains and develop credible and representative government systems and institutions. (2) support African-led regional efforts to improve security and stability in Somalia. (3) support the development of professional and regionally and ethnically representative Somali security forces. (4) provide humanitarian assistance as needed while building a foundation for Somalia's development. And (5) carry out all diplomatic, economic, intelligence, military, and development activities in Somalia within the context of a comprehensive strategy coordinated through an interagency process. Directs the President to submit to Congress a strategy to guide future US action in support of the government and people of Somalia to foster economic growth, counter armed threats to stability, and develop credible and representative government systems and institutions.

Somalia Stabilization Act of 2013


SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Acquisition
Savings Reform Act of 2011''.
    (b) Table of Contents.--The table of contents for this Act is as
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Use of reverse auction methods.
Sec. 4. Federal Strategic Sourcing Initiative.
Sec. 5. Savings through leveraging the Federal Government's purchasing
                            power.
Sec. 6. Governmentwide contract vehicles.
Sec. 7. Streamlining of contract closeouts.
Sec. 8. Affordability as a requirement for certain acquisition plans.
Sec. 9. Cost efficiency objectives for service contracts.
Sec. 10. Establishing governmentwide acquisition savings criteria.
Sec. 11. Office of Management and Budget savings requirements.
Sec. 12. Expedited payment to small business.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Approved business case.--The term ``approved business
        case'' means a business case approved by the senior procurement
        executive of an executive agency.
            (2) Acquisition.--The term ``acquisition'' has the meaning
        given the term in section 131 of title 41, United States Code.
            (3) Commercial item.--The term ``commercial item'' has the
        meaning given the term in section 103 of title 41, United
        States Code.
            (4) Executive agency.--The term ``executive agency'' has
        the meaning given the term in section 133 of title 41, United
        States Code.
            (5) Federal acquisition regulation.--The term ``Federal
        Acquisition Regulation'' means the Federal Acquisition
        Regulation maintained under section 1303(a)(1) of title 41,
        United States Code.
            (6) Federal acquisition regulatory council.--The term
        ``Federal Acquisition Regulatory Council'' means the Federal
        Acquisition Regulatory Council established under section
        1302(a) of title 41, United States Code.
            (7) Federal strategic sourcing vehicles (fssvs).--The term
        ``Federal Strategic Sourcing Vehicles'' means a kind of
        governmentwide interagency acquisition contract or agreement
        designated by the Office of Management and Budget to leverage
        the Federal Government's buying power and save taxpayers money.
            (8) Interagency contract.--The term ``interagency
        contract''--
                    (A) includes--
                            (i) governmentwide acquisition contracts as
                        defined in Federal Acquisition Regulation part
                        2.101;
                            (ii) multi-agency contracts as defined in
                        Federal Acquisition Regulation part 2.101;
                            (iii) Federal Supply Schedule contracts;
                        and
                            (iv) franchise funds; and
                    (B) does not include contracts entered into under
                the authority of section 1535 of title 31, United
                States Code.
            (9) Procurement.--The term ``procurement'' has the meaning
        given the term in section 111 of title 41, United States Code.

SEC. 3. USE OF REVERSE AUCTION METHODS.

    Not later than 270 days after the date of the enactment of this
Act, the Federal Acquisition Regulatory Council shall amend the Federal
Acquisition Regulation to require the heads of executive agencies, to
the extent possible, to use online reverse auction, or an equivalent
method, in the procurement of commercial items above the simplified
acquisition threshold whenever doing so would be expected to result in
savings to the agencies. The regulatory guidance shall address the
circumstances in which use of reverse auctions is appropriate, and
shall direct agencies, in deciding whether to use auctions or an
equivalent method, to consider the dollar volume of the acquisition and
potential to streamline the procurement for the agency and vendors.

SEC. 4. FEDERAL STRATEGIC SOURCING INITIATIVE.

    (a) Consideration in Acquisition Planning Process.--Not later than
270 days after the date of the enactment of this Act, the Federal
Acquisition Regulatory Council shall amend the Federal Acquisition
Regulation to require the consideration of Federal Strategic Sourcing
Vehicles in the acquisition planning process, by including a listing of
Federal Strategic Sourcing Vehicles in the ``Priorities for use of
Government supply sources'' for Supplies and Services. The Office of
Management and Budget shall maintain a website with the current list of
Federal Strategic Sourcing Vehicles. The Supplies priority shall be
after the priority for wholesale supply services. The Services priority
shall be after services which are on the Procurement List maintained by
the Committee for Purchase From People Who are Blind or Severely
Disabled. The Federal Acquisition Regulation shall be amended to
authorize purchases from other than from Federal Strategic Sourcing
Vehicles, provided that consideration is given to its use in the
acquisition planning process. The plan will be documented to
acknowledge why usage of other than Federal Strategic Sourcing Vehicles
is warranted. The acknowledgment shall indicate that such action is
judged to be in the best interest of the Federal Government in terms of
the combination quality, timeliness, and cost that best meets the
requirement. Cost comparisons shall include the administrative cost of
the acquisition. Unusual and compelling urgency as prescribed in the
Federal Acquisition Regulation shall also be an authorized reason from
deviating from the Federal Strategic Sourcing Vehicles.
    (b) Maximization of Small Business and Other Socioeconomic
Categories in Federal Strategic Sourcing Vehicles.--The Administrator
for Federal Procurement Policy shall issue policy maximizing the
participation of small business and other socioeconomic categories such
as service-disabled veteran-owned small business in these Federal
Strategic Sourcing Vehicles. Agencies shall also be credited towards
their small business goals when awarding to small business Federal
Strategic Sourcing Vehicle contract holders.
    (c) Identification of Designated Federal Strategic Source
Vehicles.--The Office of Management and Budget shall identify on its
website a list of all Federal Strategic Source Vehicle contracts and
agreements and awardees.
    (d) Inclusion of Information Technology Purchases and Services in
Initiative.--
            (1) Data collection.--The Director of the Office of
        Management and Budget shall prescribe regulations requiring
        Chief Information Officers and Chief Acquisition Officers of
        executive agencies to develop and gather such data on
        information technology purchases and service acquisitions by
        North American Industrial Classification codes.
            (2) Annual report.--The regulations prescribed under this
        subsection shall require the head of each executive agency to
        submit to the Director of Office of Management and Budget an
        annual report through fiscal year 2016 including the data
        collected under paragraph (1) and a plan for the strategic
        sourcing of information technology purchases and common
        commercial services. The plan shall include specific
        milestones, measurable savings, and evaluation criteria.
    (e) Reporting.--The head of each executive agency shall submit to
the Director of the Office of Management and Budget an annual report
for each of fiscal years 2013 through 2016, estimating the amount of
savings achieved through the usage of Federal Strategic Sourcing
Vehicles and through other measurable acquisition savings methods
approved by the Administrator for Federal Procurement Policy. The
report shall also specify by each Federal Strategic Sourcing Vehicle
commodity what guidance the agency has issued to employees instructing
them to procure goods or services through the Federal Strategic
Sourcing Vehicle. If the agency has not issued such guidance to their
employees, the agency shall submit an explanation.

SEC. 5. SAVINGS THROUGH LEVERAGING THE FEDERAL GOVERNMENT'S PURCHASING
              POWER.

    Not later than 120 days after the date of the enactment of this
Act, the Director of the Office of Management and Budget shall develop
a plan to achieve not less than $1,000,000,000 in measurable savings
through Federal Strategic Sourcing Vehicles for fiscal years 2013
through 2016. The plan shall include an annual scorecard measuring the
success of each executive agency in achieving savings.

SEC. 6. GOVERNMENTWIDE CONTRACT VEHICLES.

    Not later than 270 days after the date of the enactment of this
Act, the Federal Acquisition Regulatory Council shall amend the Federal
Acquisition Regulation to provide that--
            (1) where an agency is unable to satisfy the requirements
        from a mandatory source, agencies are strongly encouraged to
        utilize Federal Supply Schedules, governmentwide acquisition
        contracts, multi-agency contracts, and any other procurement
        instruments intended for use by multiple agencies, including
        blanket purchase agreements (BPAs) under Federal Supply
        Schedule contracts absent a written justification that the
        governmentwide contract is not in the best interest of the
        Federal Government;
            (2) agencies shall promote acquisition strategies utilizing
        these vehicles to maximize participation of small businesses
        and other socioeconomic categories, including set-asides of
        acquisitions under these vehicles; and
            (3) contracting officers shall be encouraged by agency
        guidance to maximize competition under these vehicles to the
        maximum amount practicable with the goal of achieving the best
        value to the Federal Government.

SEC. 7. STREAMLINING OF CONTRACT CLOSEOUTS.

    (a) Authority To Waive Contract Closeout Audits.--
            (1) Authority.--Not later than 270 days after the date of
        the enactment of this Act, the Federal Acquisition Regulatory
        Council shall amend the Federal Acquisition Regulation to
        provide contracting officers the authority to waive contract
        closeout audits above the simplified acquisition purchase
        threshold based on risk assessments. Factors upon which an
        assessment of low risk may include time and material contracts,
        low dollar cost type contracts, and contractors with approved
        business systems, strong internal controls, and good past
        performance ratings.
            (2) Guidance.--Not later than 270 days after the date of
        the enactment of this Act, the Administrator for Federal
        Procurement Policy, in collaboration with the Director of the
        Defense Procurement and Acquisition Policy, shall issue
        guidance for assisting contracting officials in determining
        when waivers of contract closeout audits pursuant to paragraph
        (1) are appropriate.
            (3) Use of abilityone program.--Where practicable, and in
        accordance with the Javits-Wagner-O'Day Act (41 U.S.C. 46 et
        seq.) as administered by the Committee For Purchase From People
        Who Are Blind or Severely Disabled, utilize the AbilityOne
        Program to accomplish non-inherently governmental tasks
        associated with contract or grant close-out in those cases
        where a Federal agency utilizes contractor support for close-
        out functions.
    (b) Firm-Fixed Contracts.--Not later than 270 days after the date
of the enactment of this Act, the Federal Acquisition Regulatory
Council shall amend the Federal Acquisition Regulation to provide that,
on firm-fixed contracts--
            (1) contractors shall submit a final invoice within 60 days
        of Federal Government acceptance or relinquish payment unless
        exempted by the contracting officer;
            (2) the contracting officer may--
                    (A) close a contract without a final invoice if the
                amount due is less than $1,000 and less than 10 percent
                of the contract value; and
                    (B) unilaterally deobligate any unliquidated
                obligations remaining on the contract; and
            (3) such contracts may be closed with missing contract
        documentation if no additional product or service will be
        received by the Federal Government and there are no outstanding
        administrative actions.
    (c) Authority To Write Off Unreconciled Balances for Low-Risk
Contracts.--Not later than 270 days after the date of the enactment of
this Act, the Federal Acquisition Regulatory Council shall amend the
Federal Acquisition Regulation to provide contracting officers, with
approval one level above the contracting officer concerned, the
authority to write off unreconciled balances on low-risk contracts in
cases in which--
            (1) all administrative actions are complete, including
        final payment to the contractor unless exempted under
        subsection (b)(1); and
            (2) a written notice of the action has been sent to the
        payment office responsible for the contract.
    (d) Authority To Grant Exemptions.--The regulations promulgated
under this section shall permit the head of contracting activity to
grant exemptions to the requirements under this section, with the
exemptions included in the contract file.
    (e) Contracting Officer Defined.--In this section, the term
``contracting officer'' includes procuring and administrative
contracting officers.

SEC. 8. AFFORDABILITY AS A REQUIREMENT FOR CERTAIN ACQUISITION PLANS.

    (a) In General.--Not later than 270 days after the date of the
enactment of this Act, the Federal Acquisition Regulatory Council shall
amend the Federal Acquisition Regulation to require heads of executive
agencies to mandate that affordability be included as a requirement for
major systems, research and development, construction and architect-
engineering acquisitions prior to the approval of any acquisition plan
exceeding $100,000,000.
    (b) Affordability Defined.--In this section, the term
``affordability'' refers to conducting an acquisition program at a cost
constrained by the maximum resources that an executive agency can
allocate for a particular capability.

SEC. 9. COST EFFICIENCY OBJECTIVES FOR SERVICE CONTRACTS.

    Not later than 270 days after the date of the enactment of this
Act, the Federal Acquisition Regulatory Council shall amend the Federal
Acquisition Regulation to require service contracts valued at more than
$100,000,000 include provisions to achieve productivity improvements
and cost efficiencies. The regulation shall permit the head of
contracting activity to grant exceptions to this requirement which
shall be included in the contract file.

SEC. 10. ESTABLISHING GOVERNMENTWIDE ACQUISITION SAVINGS CRITERIA.

    The Administrator for Federal Procurement Policy, in collaboration
with the Director of the Defense Procurement and Acquisition Policy,
shall establish at least one year from enactment a methodology to track
and monitor progress made by executive agencies in achieving measurable
acquisition savings. Measurable acquisition savings should include
price reductions and cost savings through reduced acquisition costs
such as administrative costs.

SEC. 11. OFFICE OF MANAGEMENT AND BUDGET SAVINGS REQUIREMENTS.

    (a) Plan for Reduced Use of Time and Materials Contracts.--Not
later than 270 days after the date of the enactment of this Act, the
Administrator for Federal Procurement Policy, in coordination with the
Administrator of General Services and the Secretary of Defense, shall
develop a plan for reducing the use of time and materials and labor
hour contracts, including for orders under indefinite delivery/
indefinite quantity contracts.
    (b) Report on Spending on Management Support Service Contracts.--
Not later than one year after the date of the enactment of this Act,
the Administrator for Federal Procurement Policy, in collaboration with
the Director of the Defense Procurement and Acquisition Policy, shall
submit to Congress a report on reduced spending on management support
service contracts.

SEC. 12. EXPEDITED PAYMENT TO SMALL BUSINESS.

    Not later than 270 days after the date of the enactment of this
Act, the Federal Acquisition Regulatory Council shall amend the Federal
Acquisition Regulation to reflect that governmentwide policy is to
assist small business concerns by paying them as quickly as possible
after invoices and all proper documentation, including acceptance, are
received and before normal payment due dates established in the
contract.

Summary: Acquisition Savings Reform Act of 2011 - Directs the Federal Acquisition Regulatory Council to amend the Federal Acquisition Regulation (FAR) to revise certain federal acquisition practices and procedures, including by: (1) requiring executive agency heads to use online reverse auction, or an equivalent method, in the procurement of commercial items above the simplified acquisition threshold. (2) requiring the consideration of Federal Strategic Sourcing Vehicles in the acquisition planning process. (3) authorizing contracting officers to waive contract closeout audits above the simplified acquisition purchase threshold based on risk assessments and to write off unreconciled balances on low risk contracts. (4) requiring executive agency heads to mandate that affordability be included as a requirement for major systems, research and development, and construction and architect-engineering acquisitions, prior to the approval of any acquisition plan exceeding $100 million. (5) requiring service contracts valued at more than $100 million to include provisions to achieve productivity improvements and cost efficiencies. And (6) assisting small businesses by paying their invoices as quickly as possible and before normal payment due dates established by contract. Requires the Administrator for Federal Procurement Policy to develop a plan for reducing the use of time and materials and labor hour contracts. Requires the Director of the Office of Management and Budget (OMB) to: (1) identify on the OMB website a list of all Federal Strategic Source Vehicle contracts and agreements and awardees, and (2) develop a plan to achieve not less than $1 billion in measurable savings through Federal Strategic Sourcing Vehicles for FY2013-FY2016.

A bill to achieve cost savings through the reform of Federal acquisition practices and procedures.


SECTION 1. EXPANSION AND ENHANCEMENT OF EDUCATIONAL ASSISTANCE FOR
              SURVIVORS AND DEPENDENTS OF VETERANS.

    (a) Termination of Durational Limitation on Use of Educational
Assistance.--
            (1) Termination of limitation and restatement of continuing
        requirements.--Subsection (a) of section 3511 of title 38,
        United States Code, is amended to read as follows:
    ``(a)(1) Notwithstanding any other provision of this chapter or
chapter 36 of this title, any payment of educational assistance
described in paragraph (2) shall not be charged against the entitlement
of any individual under this chapter.
    ``(2) The payment of educational assistance referred to in
paragraph (1) is the payment of such assistance to an individual for
pursuit of a course or courses under this chapter if the Secretary
finds that the individual--
            ``(A) had to discontinue such course pursuit as a result of
        being ordered to serve on active duty under section 688,
        12301(a), 12301(d), 12301(g), 12302, or 12304 of title 10; and
            ``(B) failed to receive credit or training time toward
        completion of the individual's approved educational,
        professional, or vocational objective as a result of having to
        discontinue, as described in subparagraph (A), the course
        pursuit.''.
            (2) Conforming amendments.--(A) The heading of section 3511
        of such title is amended to read as follows:
``Sec. 3511. Treatment of certain interruptions in pursuit of programs
              of education''.
            (B) Section 3532(g) of such title is amended--
                    (i) by striking paragraph (2); and
                    (ii) by redesignating paragraph (3) as paragraph
                (2).
            (C) Section 3541 of such title is amended to read as
        follows:
``Sec. 3541. Special restorative training
    ``(a) The Secretary may, at the request of an eligible person--
            ``(1) determine whether such person is in need of special
        restorative training; and
            ``(2) if such need is found to exist, prescribe a course
        which is suitable to accomplish the purposes of this chapter.
    ``(b) A course of special restorative training under subsection (a)
may, at the discretion of the Secretary, contain elements that would
contribute toward an ultimate objective of a program of education.''.
            (D) Section 3695(a)(4) of such title is amended by striking
        ``35,''.
    (b) Extension of Delimiting Age of Eligibility for Dependents.--
Section 3512(a) of title 38, United States Code, is amended by striking
``twenty-sixth birthday'' each place it appears and inserting
``thirtieth birthday''.
    (c) Amount of Educational Assistance.--
            (1) In general.--Section 3532 of title 38, United States
        Code, is amended to read as follows:
``Sec. 3532. Amount of educational assistance
    ``(a) The aggregate amount of educational assistance to which an
eligible person is entitled under this chapter is $80,000, as increased
from time to time under section 3564 of this title.
    ``(b) Within the aggregate amount provided for in subsection (a),
educational assistance under this chapter may be paid for any purpose,
and in any amount, as follows:
            ``(1) A program of education consisting of institutional
        courses.
            ``(2) A full-time program of education that consists of
        institutional courses and alternate phases of training in a
        business or industrial establishment with the training in the
        business or industrial establishment being strictly
        supplemental to the institutional portion.
            ``(3) A farm cooperative program consisting of
        institutional agricultural courses prescheduled to fall within
        forty-four weeks of any period of twelve consecutive months
        that is pursued by an eligible person who is concurrently
        engaged in agricultural employment which is relevant to such
        institutional agricultural courses as determined under
        standards prescribed by the Secretary.
            ``(4) A course or courses or other program of special
        educational assistance as provided in section 3491(a) of this
        title.
            ``(5) A program of apprenticeship or other on-job training
        pursued in a State as provided in section 3687(a) of this
        title.
            ``(6) In the case of an eligible spouse or surviving
        spouse, a program of education exclusively by correspondence as
        provided in section 3686 of this title.
            ``(7) A special training allowance for special restorative
        training as provided in section 3542 of this title.
    ``(c) If a program of education is pursued by an eligible person at
an institution located in the Republic of the Philippines, any
educational assistance for such person under this chapter shall be paid
at the rate of $0.50 for each dollar.
    ``(d)(1) Subject to paragraph (2), the amount of educational
assistance payable under this chapter for a licensing or certification
test described in section 3501(a)(5) of this title is the lesser of
$2,000 or the fee charged for the test.
    ``(2) In no event shall payment of educational assistance under
this subsection for such a test exceed the amount of the individual's
available entitlement under this chapter.''.
            (2) Conforming amendments.--(A) Section 3533 of such title
        is amended to read as follows:
``Sec. 3533. Tutorial assistance
    ``An eligible person shall, without any charge to any entitlement
of such person to educational assistance under section 3532(a) of this
title be entitled to the benefits provided an eligible veteran under
section 3492 of this title.''.
            (B) Section 3534 of such title is repealed.
            (C) Section 3542 of such title is amended--
                    (i) in subsection (a), by striking ``computed at
                the basic rate'' and all that follows through the end
                of the subsection and inserting a period; and
                    (ii) in subsection (b), by striking ``an
                educational assistance allowance'' and inserting
                ``educational assistance''.
            (D) Section 3543(c) of such title is amended--
                    (i) in paragraph (1), by adding ``and'' at the end;
                    (ii) by striking paragraph (2); and
                    (iii) by redesignating paragraph (3) as paragraph
                (2).
            (E) Section 3564 of such title is amended by striking
        ``rates payable under sections 3532, 3534(b), and 3542(a)'' and
        inserting ``aggregate amount of educational assistance payable
        under section 3532''.
            (F) Paragraph (1) of section 3565(b) of such title is
        amended to read as follows:
            ``(1) educational assistance payable under section 3532 of
        this title, including the special training allowance referred
        to in subsection (b)(7) of such section, shall be paid at the
        rate of $0.50 for each dollar; and''.
            (G) Section 3687 of such title is amended--
                    (i) in subsection (a)--
                            (I) in the matter preceding paragraph (1),
                        by striking ``or an eligible person (as defined
                        in section 3501(a) of this title)''; and
                            (II) in the flush matter following
                        paragraph (2), by striking ``chapters 34 and
                        35'' and inserting ``chapter 34'';
                    (ii) in subsection (c), by striking ``chapters 34
                and 35'' and inserting ``chapter 34''; and
                    (iii) in subsection (e), by striking paragraph (3)
                and inserting the following new paragraph (3):
            ``(3) In this subsection, the term `individual' means an
        eligible veteran who is entitled to monthly educational
        assistance allowances payable under section 3015(e) of this
        title.''.
    (d) Other Conforming Amendments.--(1) Section 3524 of title 38,
United States Code, is amended by striking ``allowance'' each place it
appears.
    (2)(A) Section 3531 of such title is amended--
            (i) in subsection (a), by striking ``an educational
        assistance allowance'' and inserting ``educational
        assistance''; and
            (ii) in subsection (b), by striking ``allowance''.
    (B) The heading of such section is amended by striking
``allowance''.
    (3) Section 3537(a) of such title is amended by striking
``additional''.
    (e) Clerical Amendments.--The table of sections at the beginning of
chapter 35 of title 38, United States Code, is amended--
            (1) by striking the item relating to section 3511 and
        inserting the following new item:

``3511. Treatment of certain interruptions in pursuit of programs of
                            education.'';
            (2) by striking the items relating to section 3531, 3532,
        and 3533 and inserting the following new items:

``3531. Educational assistance.
``3532. Amount of educational assistance.
``3533. Tutorial assistance.'';
            (3) by striking the item relating to section 3534; and
            (4) by striking the item relating to section 3541 and
        inserting the following new item:

``3541. Special restorative training.''.
    (f) Effective Dates.--(1) The amendments made by this section shall
take effect on the date of the enactment of this Act.
    (2) Notwithstanding the effective date under paragraph (1) of the
amendment to section 3564 of title 38, United States Code, made by
subsection (c)(2)(E), the Secretary of Veterans Affairs shall make the
first increase in the aggregate amount of educational assistance under
section 3532 of such title as required by such section 3564 (as so
amended) for fiscal year 2006.

Summary: Revises basic educational assistance for veterans' survivors and dependents to: (1) eliminate the present 45 month cap on benefit payments and set an aggregate limit of $80,000. (2) extend from a dependent's 26th to 30th birthday the delimiting age for the use of such assistance. (3) increase the amount of such assistance for survivors and dependents pursuing certain types of education. And (4) authorize the provision of tutorial assistance to such individuals without charge to their educational assistance entitlement.

To amend title 38, United States Code, to expand and enhance educational assistance for survivors and dependents of veterans.


SECTION 1. STANDARDIZATION OF WITHDRAWAL OPTIONS FOR THRIFT SAVINGS
              PLAN PARTICIPANTS.

    (a) Participation in the Thrift Savings Plan.--Section 8351(b) of
title 5, United States Code, is amended--
            (1) by amending paragraph (4) to read as follows:
            ``(4) Section 8433(b) of this title applies to any employee
        or Member who elects to make contributions to the Thrift
        Savings Fund under subsection (a) of this section and separates
        from Government employment.'';
            (2) by striking out paragraphs (5), (6), and (8);
            (3) by redesignating paragraphs (7), (9), and (10) as
        paragraphs (5), (6), and (7), respectively;
            (4) in paragraph (5)(C) (as redesignated under paragraph
        (3) of this subsection) by striking out ``or former spouse'' in
        both places it appears;
            (5) by amending paragraph (6) (as redesignated under
        paragraph (3) of this subsection) to read as follows:
            ``(6) Notwithstanding paragraph (4), if an employee or
        Member separates from Government employment and such employee's
        or Member's nonforfeitable account balance is $3,500 or less,
        the Executive Director shall pay the nonforfeitable account
        balance to the participant in a single payment unless the
        employee or Member elects, at such time and otherwise in such
        manner as the Executive Director prescribes, one of the options
        available under section 8433(b) of this title.''; and
            (6) in paragraph (7) (as redesignated under paragraph (3)
        of this subsection) by striking out ``nonforfeiture'' and
        inserting in lieu thereof ``nonforfeitable''.
    (b) Benefits and Election of Benefits.--Section 8433 of title 5,
United States Code, is amended--
            (1) in subsection (b) by striking out the matter before
        paragraph (1) and inserting in lieu thereof ``Subject to
        section 8435 of this title, any employee or Member who
        separates from Government employment entitled to an annuity
        under subchapter II of this chapter or any employee or Member
        who separates from Government employment is entitled and may
        elect--'';
            (2) by striking out subsections (c) and (d) and
        redesignating subsections (e), (f), (g), (h), and (i) as
        subsections (c), (d), (e), (f), and (g), respectively;
            (3) in subsection (c)(1) (as redesignated under paragraph
        (2) of this subsection) by striking out ``or (c)(4) or required
        under subsection (d) directly to an eligible retirement plan or
        plans) (as defined in section 402(a)(5)(E) of the Internal
        Revenue Code of 1954)'' and inserting in lieu thereof
        ``directly to an eligible retirement plan or plans (as defined
        in section 402(c)(8) of the Internal Revenue Code of 1986)'';
            (4) in subsection (d)(2) (as redesignated under paragraph
        (2) of this subsection) by striking out ``or (c)(2)''; and
            (5) in subsection (f) (as redesignated under paragraph (2)
        of this subsection)--
                    (A) by striking out paragraph (1) and redesignating
                paragraphs (2) and (3) as paragraphs (1) and (2),
                respectively; and
                    (B) in paragraph (1) (as redesignated under
                subparagraph (A) of this paragraph)--
                            (i) by striking out ``Notwithstanding
                        subsections (b) and (c), if an employee or
                        Member separates from Government employment
                        under circumstances making such an employee or
                        Member eligible to make an election under
                        either of those subsections, and such
                        employee's or Member's'' and inserting in lieu
                        thereof ``Notwithstanding subsection (b), if an
                        employee or Member separates from Government
                        employment, and such employee's or Member's'';
                        and
                            (ii) by striking out ``or (c), as
                        applicable''; and
                    (C) in paragraph (2) (as redesignated under
                subparagraph (A) of this paragraph) by striking out
                ``paragraphs (1) and (2)'' and inserting in lieu
                thereof ``paragraph (1)''.
    (c) Annuities: Methods of Payment; Election; Purchase.--Section
8434(c) of title 5, United States Code, is amended to read as follows:
    ``(c) Notwithstanding an elimination of a method of payment by the
Board an employee, Member, former employee, or former Member may elect
the eliminated method if the elimination of such method became
effective less than 5 years before the date on which the annuity
commences.''.
    (d) Protections for Spouses and Former Spouses.--Section 8435 of
title 5, United States Code, is amended--
            (1) in subsection (a)(1)(A) by striking out ``subsection
        (b)(3), (b)(4), (c)(3), or (c)(4) of section 8433 of this title
        or change an election previously made under subsection (b)(1),
        (b)(2), (c)(1), or (c)(2)'' and inserting in lieu thereof
        ``subsection (b)(3) or (b)(4) of section 8433 of this title or
        change an election previously made under subsection (b)(1) or
        (b)(2)'';
            (2) by striking out subsection (b);
            (3) by redesignating subsections (c), (d), (e), (f), (g),
        (h), and (i) as subsections (b), (c), (d), (e), (f), (g), and
        (h), respectively;
            (4) in subsection (b) (as redesignated under paragraph (3)
        of this subsection) by amending paragraph (2) to read as
        follows:
            ``(2) Paragraph (1) shall not apply, if--
                    ``(A) a joint waiver of such method is made, in
                writing, by the employee or Member and the spouse; or
                    ``(B) the employee or Member waives such method, in
                writing, after establishing to the satisfaction of the
                Executive Director that circumstances described under
                subsection (a)(2) (A) or (B) make the requirement of a
                joint waiver inappropriate.''; and
            (5) in subsection (c)(1) (as redesignated under paragraph
        (3) of this subsection) by striking out ``and a transfer may
        not be made under section 8433(d) of this title''.
    (e) Justices and Judges.--Section 8440a(b) of title 5, United
States Code, is amended--
            (1) in paragraph (5) by striking out ``Section 8433(d)''
        and inserting in lieu thereof ``Section 8433(b)''; and
            (2) by striking out paragraphs (7) and (8) and inserting in
        lieu thereof the following:
            ``(7) Notwithstanding paragraphs (4) and (5), if any
        justice or judge retires under subsection (a) or (b) of section
        371 or section 372(a) of title 28, or resigns without having
        met the age and service requirements set forth under section
        371(c) of title 28, and such justice's or judge's
        nonforfeitable account balance is $3,500 or less, the Executive
        Director shall pay the nonforfeitable account balance to the
        participant in a single payment unless the justice or judge
        elects, at such time and otherwise in such manner as the
        Executive Director prescribes, one of the options available
        under section 8433(b).''.
    (f) Bankruptcy Judges and Magistrates.--Section 8440b of title 5,
United States Code, is amended--
            (1) in subsection (b)(4) by amending subparagraph (B) to
        read as follows:
                    ``(B) Section 8433(b) of this title applies to any
                bankruptcy judge or magistrate who elects to make
                contributions to the Thrift Savings Fund under
                subsection (a) of this section and who retires before
                attaining age 65 but is entitled, upon attaining age
                65, to an annuity under section 377 of title 28 or
                section 2(c) of the Retirement and Survivors Annuities
                for Bankruptcy Judges and Magistrates Act of 1988.'';
            (2) in subsection (b)(4)(C) by striking out ``Section
        8433(d)'' and inserting in lieu thereof ``Section 8433(b)'';
            (3) in subsection (b)(5) by striking out ``retirement under
        section 377 of title 28 is'' and inserting in lieu thereof
        ``any of the actions described under paragraph (4) (A), (B), or
        (C) shall be considered'';
            (4) in subsection (b) by striking out paragraph (8) and
        redesignating paragraph (9) as paragraph (8); and
            (5) in paragraph (8) of subsection (b) (as redesignated
        under paragraph (4) of this subsection)--
                    (A) by striking out ``Notwithstanding subparagraphs
                (A) and (B) of paragraph (4), if any bankruptcy judge
                or magistrate retires under circumstances making such
                bankruptcy judge or magistrate eligible to make an
                election under subsection (b) or (c)'' and inserting in
                lieu thereof ``Notwithstanding paragraph (4), if any
                bankruptcy judge or magistrate retires under
                circumstances making such bankruptcy judge or
                magistrate eligible to make an election under
                subsection (b)''; and
                    (B) by striking out ``and (c), as applicable''.
    (g) Claims Court Judges.--Section 8440c of title 5, United States
Code, is amended--
            (1) in subsection (b)(4)(B) by striking out ``Section
        8433(d)'' and inserting in lieu thereof ``Section 8433(b)'';
            (2) in subsection (b)(5) by striking out ``retirement under
        section 178 of title 28, is'' and inserting in lieu thereof
        ``any of the actions described in paragraph (4) (A) or (B)
        shall be considered'';
            (3) in subsection (b) by striking out paragraph (8) and
        redesignating paragraph (9) as paragraph (8); and
            (4) in paragraph (8) (as redesignated under paragraph (3)
        of this subsection) by striking out ``Notwithstanding paragraph
        (4)(A)'' and inserting in lieu thereof ``Notwithstanding
        paragraph (4)''.
    (h) Judges of the United States Court of Veterans Appeals.--Section
8440d(b)(5) of title 5, United States Code, is amended by striking out
``A transfer shall be made as provided under section 8433(d) of this
title'' and inserting in lieu thereof ``Section 8433(b) of this title
applies''.
    (i) Technical and Conforming Amendments.--Chapters 83 and 84 of
title 5, United States Code, are amended--
            (1) in section 8351(b)(5)(B) (as redesignated under
        subsection (a)(3) of this section) by striking out ``section
        8433(i)'' and inserting in lieu thereof ``section 8433(g)'';
            (2) in section 8351(b)(5)(D) (as redesignated under
        subsection (a)(3) of this section) by striking out ``section
        8433(i)'' and inserting in lieu thereof ``section 8433(g)'';
            (3) in section 8433(b)(4) by striking out ``subsection
        (e)'' and inserting in lieu thereof ``subsection (c)'';
            (4) in section 8433(d)(1) (as redesignated under subsection
        (b)(2) of this section) by striking out ``(d) of section 8435''
        and inserting in lieu thereof ``(c) of section 8435'';
            (5) in section 8433(d)(2) (as redesignated under subsection
        (b)(2) of this section) by striking out ``section 8435(d)'' and
        inserting in lieu thereof ``section 8435(c)'';
            (6) in section 8433(e) (as redesignated under subsection
        (b)(2) of this section) by striking out ``section 8435(d)(2)''
        and inserting in lieu thereof ``section 8435(c)(2)'';
            (7) in section 8433(g)(5) (as redesignated under subsection
        (b)(2) of this section) by striking out ``section 8435(f)'' and
        inserting in lieu thereof ``section 8435(e)'';
            (8) in section 8434(b) by striking out ``section 8435(c)''
        and inserting in lieu thereof ``section 8435(b)'';
            (9) in section 8435(a)(1)(B) by striking out ``subsection
        (c)'' and inserting in lieu thereof ``subsection (b)'';
            (10) in section 8435(d)(1)(B) (as redesignated under
        subsection (d)(3) of this section) by striking out ``subsection
        (d)(2)'' and inserting in lieu thereof ``subsection (c)(2)'';
            (11) in section 8435(d)(3)(A) (as redesignated under
        subsection (d)(3) of this section) by striking out ``subsection
        (c)(1)'' and inserting in lieu thereof ``subsection (b)(1)'';
            (12) in section 8435(d)(6) (as redesignated under
        subsection (d)(3) of this section) by striking out ``or
        (c)(2)'' and inserting in lieu thereof ``or (b)(2)'';
            (13) in section 8435(e)(1)(A) (as redesignated under
        subsection (d)(3) of this section) by striking out ``section
        8433(i)'' and inserting in lieu thereof ``section 8433(g)'';
            (14) in section 8435(e)(2) (as redesignated under
        subsection (d)(3) of this section) by striking out ``section
        8433(i) of this title shall not be approved if approval would
        have the result described in subsection (d)(1)'' and inserting
        in lieu thereof ``section 8433(g) of this title shall not be
        approved if approval would have the result described under
        subsection (c)(1)'';
            (15) in section 8435(g) (as redesignated under subsection
        (d)(3) of this section) by striking out ``section 8433(i)'' and
        inserting in lieu thereof ``section 8433(g)'';
            (16) in section 8437(c)(5) by striking out ``section
        8433(i)'' and inserting in lieu thereof ``section 8433(g)'';
        and
            (17) in section 8440a(b)(6) by striking out ``section
        8351(b)(7)'' and inserting in lieu thereof ``section
        8351(b)(5)''.
    (j) Interim Provision.--Section 8433(d) of title 5, United States
Code, is amended by striking out ``shall transfer the amount of the
balance'' and inserting in lieu thereof ``may transfer the amount of
the balance''.
    (k) Effective Dates.--(1) Except as provided in paragraph (2), the
provisions of this section shall take effect 1 year after the date of
enactment of this Act or upon such other date as the Executive Director
of the Federal Retirement Thrift Investment Board shall provide in
regulation.
    (2) The provisions of subsection (j) of this section shall take
effect upon the date of the enactment of this Act.

            Passed the Senate November 24 (legislative day, November
      23), 1993.

            Attest:

                                             WALTER J. STEWART,

                                                             Secretary.

Summary: Revises the Thrift Savings Plan (TSP), with changes providing separating TSP participants with the same options for withdrawal.

A bill to standardize withdrawal options for Thrift Savings Plan participants, and for other purposes.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``ED 1.0 Act''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) Access to technology can improve grade and test
        averages, graduation rates, and retention rates, in addition to
        increasing the number of graduates in science and technology
        disciplines.
            (2) Minority-serving institutions historically have an
        important role in reaching an underserved population, and
        minority-serving institutions in economically disadvantaged
        areas face particular hardships in acquiring funds to sustain
        and expand their technological resources.
            (3) Low-income areas are technologically underserved.
            (4) Congress and the technological community should do all
        they can to find new and creative ways to bridge the current
        technology gap.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Administrator.--The term ``Administrator'' means the
        Administrator of the National Telecommunications and
        Information Administration.
            (2) Eligible educational institution.--The term ``eligible
        educational institution'' means an institution that is--
                    (A) a historically Black college or university;
                    (B) a Hispanic-serving institution as that term is
                defined in section 502(a)(5) of the Higher Education
                Act of 1965 (20 U.S.C. 1101a(a)(5));
                    (C) a tribally controlled college or university as
                that term is defined in section 2(a)(4) of the Tribally
                Controlled College or University Assistance Act of 1978
                (25 U.S.C. 1801(a)(4));
                    (D) an Alaska Native-serving institution as that
                term is defined in section 317(b)(2) of the Higher
                Education Act of 1965 (20 U.S.C. 1059d(b)(2)); or
                    (E) a Native Hawaiian-serving institution as that
                term is defined in section 317(b)(4) of the Higher
                Education Act of 1965 (20 U.S.C. 1059d(b)(4)).
            (3) Historically black college or university.--The term
        ``historically Black college or university'' means a part B
        institution as that term is defined in section 322(2) of the
        Higher Education Act of 1965 (20 U.S.C. 1061(2)).

SEC. 4. MINORITY ONLINE DEGREE PILOT PROGRAM.

    (a) Pilot Program Established.--
            (1) In general.--There is established within the National
        Telecommunications and Information Administration a pilot
        program under which the Administrator shall award 4 grants to
        eligible educational institutions to enable the eligible
        educational institutions to develop digital and wireless
        networks for online educational programs of study within the
        eligible educational institutions.
            (2) Grant number, duration, and amount.--
                    (A) Number.--The Administrator shall award a total
                of 4 grants under this section.
                    (B) Duration.--Each grant under this section shall
                be awarded for a period of 6 years.
                    (C) Annual grant payment amounts.--The
                Administrator shall make grant payments under this
                section in the amount of--
                            (i) $1,000,000 for the first fiscal year of
                        a grant awarded under this section;
                            (ii) $600,000 for each of the second
                        through fifth such fiscal years; and
                            (iii) $100,000 for the sixth such fiscal
                        year.
    (b) Priority.--
            (1) In general.--In awarding grants under this section the
        Administrator shall give priority to an eligible educational
        institution that, according to the most recent data available
        (including data available from the Bureau of the Census),
        serves a county--
                    (A) in which 50 percent of the residents of the
                county are members of a racial or ethnic minority;
                    (B) in which less than 18 percent of the residents
                of the county have obtained a baccalaureate degree or a
                higher education;
                    (C) that has an unemployment rate of 7 percent or
                greater;
                    (D) in which 19 percent or more of the residents of
                the county live in poverty;
                    (E) that has a negative population growth rate; or
                    (F) that has a median family income of $32,000.
            (2) Highest priority.--In awarding grants under this
        section the Administrator shall give the highest priority to an
        eligible educational institution that meets the greatest number
        of requirements described in subparagraphs (A) through (F) of
        paragraph (1).
    (c) Use of Funds.--An eligible educational institution receiving a
grant under this section may use the grant funds--
            (1) to acquire equipment, instrumentation, networking
        capability, hardware, software, digital network technology,
        wireless technology, or wireless infrastructure;
            (2) to develop and provide educational services, including
        faculty development; or
            (3) to develop strategic plans for information technology
        investments.
    (d) Matching Not Required.--The Administrator shall not require an
eligible educational institution to provide matching funds for a grant
awarded under this section.
    (e) Report.--Not later than November 1 of each year, the
Administrator shall submit to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on Energy and Commerce
of the House of Representatives, a report evaluating the progress,
during the preceding fiscal year, of the pilot program assisted under
this section.
    (f) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to
        carry out this section--
                    (A) $4,500,000 for fiscal year 2008;
                    (B) $2,400,000 for each of the fiscal years 2009
                through 2012; and
                    (C) $500,000 for fiscal year 2013.
            (2) Availability.--Funds appropriated under paragraph (1)
        shall remain available until expended.
    (g) Limitation on Use of Other Funds.--The Administrator shall
carry out this section only with amounts appropriated in advance
specifically to carry out this section.

Summary: ED 1.0 Act - Establishes a pilot program requiring the Administrator of the National Telecommunications and Information Administration to award six-year grants to four minority-serving educational institutions, enabling them to develop digital and wireless networks for online programs of study within the institutions. Gives grant priority to institutions serving counties: (1) that meet specified criteria of economic depression. (2) less than 18 of whose residents have a higher education, and (3) at least half of whose residents are minorities.

A bill to establish digital and wireless networks to advance online higher education opportunities for minority students.


SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Special Needs
Trust Fairness and Medicaid Improvement Act''.
    (b) Table of Contents.--The table of contents of this Act is as
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Fairness in Medicaid supplemental needs trusts.
Sec. 3. Medicaid coverage of tobacco cessation services for mothers of
                            newborns.
Sec. 4. Eliminating Federal financial participation with respect to
                            expenditures under Medicaid for agents used
                            for cosmetic purposes or hair growth.
Sec. 5. Medicaid Improvement Fund.

SEC. 2. FAIRNESS IN MEDICAID SUPPLEMENTAL NEEDS TRUSTS.

    (a) In General.--Section 1917(d)(4)(A) of the Social Security Act
(42 U.S.C. 1396p(d)(4)(A)) is amended by inserting ``the individual,''
after ``for the benefit of such individual by''.
    (b) Effective Date.--The amendment made by subsection (a) shall
apply to trusts established on or after the date of the enactment of
this Act.

SEC. 3. MEDICAID COVERAGE OF TOBACCO CESSATION SERVICES FOR MOTHERS OF
              NEWBORNS.

    (a) In General.--Section 1905(bb) of the Social Security Act (42
U.S.C. 1396d(bb)) is amended by adding at the end the following new
paragraph:
    ``(4) A woman shall continue to be treated as described in this
subsection as a pregnant woman through the end of the 1-year period
beginning on the date of the birth of a child of the woman.''.
    (b) Conforming Amendments.--
            (1) Subsections (a)(2)(B) and (b)(2)(B) of section 1916 of
        the Social Security Act (42 U.S.C. 1396o) are each amended by
        inserting ``(and women described in section 1905(bb) as
        pregnant women pursuant to paragraph (4) of such section)''
        after ``tobacco cessation by pregnant women''.
            (2) Section 1927(d)(2)(F) of the Social Security Act (42
        U.S.C. 1396r-8(d)(2)(F)) is amended by inserting ``(and women
        described in section 1905(bb) as pregnant women pursuant to
        paragraph (4) of such section)'' after ``pregnant women''.
    (c) Effective Date.--
            (1) In general.--Subject to paragraph (2), the amendments
        made by this section shall apply with respect to items and
        services furnished on or after the date that is 2 years after
        the date of the enactment of this Act.
            (2) Exception for state legislation.--In the case of a
        State plan under title XIX of the Social Security Act, which
        the Secretary of Health and Human Services determines requires
        State legislation in order for the plan to meet any requirement
        imposed by amendments made by this section, the plan shall not
        be regarded as failing to comply with the requirements of such
        title solely on the basis of its failure to meet such an
        additional requirement before the first day of the first
        calendar quarter beginning after the close of the first regular
        session of the State legislature that begins after the
        effective date specified in paragraph (1). For purposes of the
        previous sentence, in the case of a State that has a 2-year
        legislative session, each year of the session shall be
        considered to be a separate regular session of the State
        legislature.
    (d) Report.--Not later than 2 years after the date of the enactment
of this Act, the Inspector General of the Department of Health and
Human Services shall submit to Congress a report that assesses the use
of the tobacco cessation service benefit under the Medicaid program.
Such report shall include an assessment of--
            (1) the extent that States are encouraging the use of such
        benefit, such as through promotion of beneficiary and provider
        awareness of such benefit; and
            (2) gaps in the delivery of such benefit.

SEC. 4. ELIMINATING FEDERAL FINANCIAL PARTICIPATION WITH RESPECT TO
              EXPENDITURES UNDER MEDICAID FOR AGENTS USED FOR COSMETIC
              PURPOSES OR HAIR GROWTH.

    (a) In General.--Section 1903(i)(21) of the Social Security Act (42
U.S.C. 1396b(i)(21)) is amended by inserting ``section 1927(d)(2)(C)
(relating to drugs when used for cosmetic purposes or hair growth),
except where medically necessary, and'' after ``drugs described in''.
    (b) Effective Date.--The amendment made by subsection (a) shall
apply with respect to calendar quarters beginning on or after the date
of the enactment of this Act.

SEC. 5. MEDICAID IMPROVEMENT FUND.

    Section 1941(b) of the Social Security Act (42 U.S.C. 1396w-1(b))
is amended--
            (1) in paragraph (2)--
                    (A) by striking ``under paragraph (1)'' and
                inserting ``under this subsection''; and
                    (B) by redesignating such paragraph as paragraph
                (3); and
            (2) by inserting after paragraph (1) the following new
        paragraph:
            ``(2) Additional funding.--In addition to any funds
        otherwise made available to the Fund, there shall be available
        to the Fund, for expenditures from the Fund--
                    ``(A) for fiscal year 2021, $10,000,000, to remain
                available until expended; and
                    ``(B) for fiscal year 2022, $14,000,000, to remain
                available until expended.''.

            Passed the House of Representatives September 20, 2016.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.

Summary: This measure has not been amended since it was reported to the House on September 9, 2016. Special Needs Trust Fairness and Medicaid Improvement Act This bill amends title XIX (Medicaid) of the Social Security Act with respect to the treatment of revocable trusts for the benefit of an individual for purposes of meeting income requirements for Medicaid coverage. The bill extends the supplemental needs trust exemption from treatment of a trust as resources available to the individual to supplemental needs trusts for Medicaid beneficiaries established by those beneficiaries. Medicaid coverage of tobacco cessation services shall continue to be provided for mothers of newborns through the first year after the child's birth. The Inspector General of the Department of Health and Human Services must report to the Congress on the use of the tobacco cessation service benefit under the Medicaid program. The bill eliminates federal financial participation regarding expenditures under Medicaid for drugs used for cosmetic purposes or hair growth, except where such drugs are medically necessary. The bill makes additional funding available to the Medicaid Improvement Fund for FY2021 and FY2022.


SECTION 1. EXCLUSION FROM ESTATE TAX FOR HISTORIC PROPERTY SUBJECT TO
              PRESERVATION EASEMENT.

    (a) In General.--Part IV of subchapter A of chapter 11 of the
Internal Revenue of 1986 (relating to taxable estate) is amended by
adding at the end the following new section:

``SEC. 2057. QUALIFIED HISTORIC PROPERTY.

    ``(a) General Rule.--For purposes of the tax imposed by section
2001, the value of the taxable estate shall be determined by deducting
from the value of the gross estate an amount equal to the value of any
qualified historic property included in the gross estate.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Qualified historic property.--
                    ``(A) In general.--The term `qualified historic
                property' means any historic property if--
                            ``(i) on or before the date on which the
                        return of the tax imposed by section 2001 is
                        filed, a qualified real property interest
                        described in section 170(h)(2)(C) in such
                        property is held by a qualified organization
                        for the purpose described in section
                        170(h)(4)(A)(iv), and
                            ``(ii) such property is covered by an
                        agreement meeting the requirements of
                        subsection (c) which is entered into on or
                        before such date.
                    ``(B) Treatment of personal property.--Such term
                includes personal property included within, or
                associated with, qualified historic property (as
                defined in paragraph (1)) if such personal property--
                            ``(i) is held by the decedent holding such
                        qualified historic property,
                            ``(ii) has been so included within, or
                        associated with, such qualified historic
                        property throughout the 10-year period ending
                        on the date of the decedent's death, and
                            ``(iii) is covered by the agreement
                        referred to in subparagraph (A)(ii) which
                        covers such qualified historic property.
            ``(2) Historic property.--The term `historic property'
        means--
                    ``(A) any building (and its structural
                components)--
                            ``(i) which is designated as a National
                        Historic Landmark under section 101 of the
                        National Historic Preservation Act throughout
                        the 10-year period ending on the date of the
                        decedent's death,
                            ``(ii) which was owned by the decedent or a
                        member of the decedent's family (as defined in
                        section 2032A(e)(2)) throughout such 10-year
                        period, and
                            ``(iii) which was originally used for
                        residential purposes, and
                    ``(B) any other real property to the extent
                reasonably necessary for public view and visitation of
                the property described in subparagraph (A).
            ``(3) Qualified organization.--The term `qualified
        organization' has the meaning given to such term by section
        170(h)(3).
            ``(4) Treatment of qualified historic property held by a
        corporation.--In the case of a corporation all of the stock in
        which was held on the date of the decedent's death by the
        decedent or members of the decedent's family (as defined in
        section 2032A(e)(2))--
                    ``(A) stock in such corporation shall be treated
                for purposes of this section as qualified historic
                property to the extent that the value of such stock is
                attributable to qualified historic property held by
                such corporation, but
                    ``(B) the requirements of subsection (c) shall be
                met only if each member of the decedent's family
                holding such stock on such date sign the agreement
                referred to in subsection (c).
    ``(c) Requirements for Agreement.--
            ``(1) In general.--For purposes of subsection
        (b)(1)(A)(ii), an agreement meets the requirements of this
        subsection if--
                    ``(A) such agreement is a written agreement signed
                by each person in being who has an interest (whether or
                not in possession) in the historic property (other than
                the qualified organization),
                    ``(B) such agreement is entered into with a State
                historic preservation agency (or similar State agency)
                and filed with the Secretary with the return of the tax
                imposed by section 2001,
                    ``(C) such agreement provides that the only
                activities carried on at the historic property are
                activities which are substantially related (aside from
                the need for income or funds or the use made of the
                profits derived) to--
                            ``(i) the public view and visitation of
                        such property and the property described in the
                        last sentence of subsection (b)(1) with respect
                        to such property), and
                            ``(ii) the maintenance and preservation of
                        such property and surrounding areas for such
                        public view and visitation,
                    ``(D) such agreement provides that the historic
                property will be open to the public for a period of at
                least 20 years beginning on the date on which the
                return of the tax imposed by section 2001 is filed, and
                    ``(E) such agreement provides that any admission
                fees (if any) shall bear a reasonable relationship to
                admission fees for other comparable tourist sites and
                shall be approved by such State historic preservation
                agency (or similar State agency).
            ``(2) Treatment of food, lodging, and meeting facilities
        provided to general public.--The regular carrying on--
                    ``(A) a trade or business of providing lodging
                shall be treated as not substantially related for
                purposes of paragraph (1)(C),
                    ``(B) a trade or business of providing food shall
                be treated as not substantially related for purposes of
                paragraph (1)(C) unless--
                            ``(i) such food is only provided to
                        individuals who pay the generally applicable
                        admission fees (if any) for admission to the
                        property by individuals to whom no food is
                        provided, and
                            ``(ii) only an insubstantial portion of the
                        structures on the historic property is devoted
                        to the provision of such food, and
                    ``(C) a trade or business of providing facilities
                for meetings or events shall be treated as not
                substantially related for purposes of paragraph (1)(C)
                unless all of the net proceeds from such trade or
                business are used for maintenance or preservation of
                the historic property.
            ``(3) Open to the public.--For the purposes of paragraph
        (1)(D), the 20-year period referred to in such paragraph shall
        be suspended during reasonable periods of renovation.
    ``(d) Tax Treatment of Dispositions and Failure To Comply With
Agreement.--
            ``(1) Imposition of additional estate tax.--If, during the
        20-year period referred to in subsection (c)(1)(D)--
                    ``(A) any person signing the written agreement
                referred to in subsection (c) disposes of any interest
                in the qualified historic property, or
                    ``(B) there is a violation of any provision of such
                agreement (as determined under regulations prescribed
                by the Secretary),
        then there is hereby imposed an additional estate tax.
            ``(2) Exception for certain transferees who agree to be
        bound by agreement.--No tax shall be imposed under paragraph
        (1) by reason of any disposition if the person acquiring the
        property--
                    ``(A) is a qualified organization or is a member of
                the family (as defined in section 2032A(e)(2)) of the
                person disposing of such property, and
                    ``(B) agrees to be bound by the agreement referred
                to in subsection (b)(4) and to be liable for any tax
                under this subsection in the same manner as the person
                disposing of such property.
            ``(3) Amount of additional tax.--
                    ``(A) In general.--The amount of the additional tax
                imposed by paragraph (1) with respect to any property
                shall be an amount equal to the applicable percentage
                of the excess of--
                            ``(i) what would (but for subsection (a))
                        have been the tax imposed by section 2001
(reduced by the credits allowable), over
                            ``(ii) the tax imposed by section 2001 (as
                        so reduced).
                    ``(B) Applicable percentage.--For purposes of
                subparagraph (A), the applicable percentage is the
                percentage determined in accordance with the following
                table for the year (of 20-year period referred to in
                subsection (c)(1)(D)) in which the event described in
                paragraph (1) occurs:

                ``If the event
                                                         The applicable
                occurs during:
                                                         percentage is:
                The 1st 12 years of such 20-year       100 percent
                    period.
                The 13th or 14th year of such period.   80 percent
                The 15th or 16th year of such period.   60 percent
                The 17th or 18th year of such period.   40 percent
                The 19th or 20th year of such period.   20 percent.
            ``(4) Due date.--The additional tax imposed by this
        subsection shall be due and payable on the day which is 6
        months after the date of the disposition or violation referred
        to in paragraph (1).
            ``(5) Liability for tax.--Any person signing the agreement
        referred to in subsection (c) (other than the executor) shall
        be personally liable for the additional tax imposed by this
        subsection. If more than 1 person is liable under this
        subsection, all such persons shall be jointly and severally
        liable.
            ``(6) Certain other rules to apply.--Rules similar to the
        rules of sections 1016(c), 2013(f), and 2032A(f) shall apply
        for purposes of this subsection.
    ``(e) Other Special Rules.--
            ``(1) Coordination with deduction for transfer of
        easement.--Section 2055(f) shall not apply to any interest
        referred to therein with respect to property for which a
        deduction is allowed under subsection (a).
            ``(2) Denial of deduction of indebtedness on excluded
        property.--No deduction shall be allowed under section 2053 for
        indebtedness in respect of property the value of which is
        deducted under subsection (a).
            ``(3) Submission of annual inventories of personal
        property.--The Secretary shall require the submission to the
        Secretary of such inventories of personal property which is
        qualified historic property as the Secretary determines are
        necessary for purposes of this section.''
    (b) Technical Amendments.--
            (1) Subsection (a) of section 1014 of such Code is amended
        by striking the period at the end of paragraph (3) and
        inserting ``, or'' and by adding after paragraph (3) the
        following new paragraph:
            ``(4) in the case of property the value of which was
        deducted under section 2057(a), the adjusted basis of such
        property in the hands of the decedent immediately before the
        death of the decedent.''
            (2) Subparagraph (A) of section 2056A(b)(10) of such Code
        is amended by inserting ``2057,'' after ``2056,''.
            (3) The table of sections for part IV of subchapter A of
        chapter 11 of such Code is amended by adding at the end the
        following new item:

                              ``Sec. 2057. Qualified historic
                                        property.''
    (c) Effective Date.--The amendments made by this section shall
apply with respect to the estates of decedents dying after the date of
the enactment of this Act.

Summary: Amends the Internal Revenue Code to provide that for purposes of determining estate tax the value of the taxable estate shall be determined by deducting from the value of the gross estate an amount equal to the value of any qualified historic property. Defines qualified historic property. Requires, among other things, that the historic property will be open to the public for a period of at least 20 years and will have reasonable admission fees.

A bill to amend the Internal Revenue Code of 1986 to provide that the value of qualified historic property shall not be included in determining the taxable estate of a decedent.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Preventing Iran's Access to United
States Dollars Act of 2016''.

SEC. 2. PROHIBITION ON FACILITATION OF CERTAIN TRANSACTIONS INVOLVING
              THE GOVERNMENT OF IRAN OR IRANIAN PERSONS.

    (a) In General.--The President shall not issue any license under
the International Emergency Economic Powers Act (50 U.S.C. 1701 et
seq.) that permits a person--
            (1) to conduct an offshore United States dollar clearing
        system for transactions involving the Government of Iran or an
        Iranian person; or
            (2) to provide United States dollars for any offshore
        United States dollar clearing system conducted or overseen by a
        foreign government or a foreign financial institution for
        transactions involving the Government of Iran or an Iranian
        person.
    (b) Definitions.--In this section:
            (1) Entity.--The term ``entity'' means a corporation,
        business association, partnership, trust, society, or any other
        entity.
            (2) Foreign financial institution.--The term ``foreign
        financial institution'' has the meaning of that term as
        determined by the Secretary of the Treasury pursuant to section
        104(i) of the Comprehensive Iran Sanctions, Accountability, and
        Divestment Act of 2010 (22 U.S.C. 8513(i)).
            (3) Person.--The term ``person'' means an individual or
        entity.

SEC. 3. REPORTS ON, AND AUTHORIZATION OF IMPOSITION OF SANCTIONS WITH
              RESPECT TO, OFFSHORE UNITED STATES DOLLAR CLEARING FOR
              TRANSACTIONS INVOLVING THE GOVERNMENT OF IRAN OR IRANIAN
              PERSONS.

    (a) Reports Required.--
            (1) In general.--Not later than 60 days after the date of
        the enactment of this Act, and not less frequently than once
        every 90 days thereafter, the Secretary of the Treasury shall
        submit to the appropriate congressional committees and publish
        in the Federal Register a report that contains--
                    (A) a list of any financial institutions that the
                Secretary has identified as--
                            (i) operating an offshore United States
                        dollar clearing system that conducts
                        transactions involving the Government of Iran
                        or an Iranian person; or
                            (ii) participating in a transaction
                        described in clause (i) through a system
                        described in that clause; and
                    (B) a detailed assessment of the status of efforts
                by the Secretary to prevent the conduct of transactions
                described in subparagraph (A)(i) through systems
                described in that subparagraph.
            (2) Form of report.--Each report submitted under paragraph
        (1) shall be submitted in unclassified form but may contain a
        classified annex.
    (b) Imposition of Sanctions.--
            (1) In general.--The President shall, in accordance with
        the International Emergency Economic Powers Act (50 U.S.C. 1701
        et seq.), block and prohibit all transactions in all property
        and interests in property of any financial institution
        specified in the most recent list submitted under subsection
        (a)(1)(A) if such property and interests in property are in the
        United States, come within the United States, or are or come
        within the possession or control of a United States person.
            (2) Additional sanctions.--The President may impose
        additional sanctions under the International Emergency Economic
        Powers Act (50 U.S.C. 1701 et seq.) with respect to a financial
        institution that is subject to sanctions under paragraph (1).
    (c) Appropriate Congressional Committees Defined.--In this section,
the term ``appropriate congressional committees'' has the meaning given
that term in section 14 of the Iran Sanctions Act of 1996 (Public Law
104-172; 50 U.S.C. 1701 note).

SEC. 4. CLARIFICATION THAT FREEZING OF ASSETS OF IRANIAN FINANCIAL
              INSTITUTIONS INCLUDES ASSETS IN POSSESSION OR CONTROL OF
              A UNITED STATES PERSON PURSUANT TO A U-TURN TRANSACTION.

    Section 1245(c) of the National Defense Authorization Act for
Fiscal Year 2012 (22 U.S.C. 8513a) is amended--
            (1) by striking ``The President'' and inserting ``(1) In
        general.--The President''; and
            (2) by adding at the end the following:
            ``(2) Treatment of certain transactions.--
                    ``(A) U-turn transactions.--Property that comes
                within the possession or control of a United States
                person pursuant to a transfer of funds that arises
                from, and is ordinarily incident and necessary to give
                effect to, an underlying transaction shall be
                considered to come within the possession or control of
                that person for purposes of paragraph (1).
                    ``(B) Book transfers.--A transfer of funds or other
                property for the benefit of an Iranian financial
                institution that is made between accounts of the same
                financial institution shall be considered property or
                interests in property of that Iranian financial
                institution for purposes of paragraph (1) even if that
                Iranian financial institution is not the direct
                recipient of the transfer.''.

Summary: Preventing Iran's Access to United States Dollars Act of 2016 This bill prohibits the President from issuing a license that permits a person to: conduct an offshore US dollar clearing system for transactions involving the government of Iran or an Iranian person, or provide US dollars for any offshore US dollar clearing system conducted by a foreign government or a foreign financial institution for transactions involving the government of Iran or an Iranian person. The Department of the Treasury shall report to Congress: a list of financial institutions operating or participating in an offshore US dollar clearing system that conducts transactions involving the government of Iran or an Iranian person, and an assessment of Treasury efforts to prevent such transactions. The President shall block and prohibit all transactions in property and property interests of any listed institution if the property and interests: (1) are in the United States, (2) come within the United States, or (3) are or come within the possession or control of a US person. The President may impose additional sanctions pursuant to the International Emergency Economic Powers Act. The National Defense Authorization Act for Fiscal Year 2012 is amended to subject to sanctions: (1) u-turn transactions , and (2) book transfers .