ment's final rule-Rules of Practice: Elimination of unnecessary provisions relating to representation, witnesses, and access to Board records (RIN: 2900-AI15) received June 5, 1996, pursuant to 5 U.S.C. 801(a)(1)(A); to the Committee on Veterans' Affairs.

3421. A letter from the Director, Office of Regulations Management, Department of Veterans Affairs, transmitting the Department's final rule-Veterans Mortgage Life Insurance (RIN: 2900-AH54) received June 5, 1996, pursuant to 5 U.S.C. 801(a)(1)(A); to the Committee on Veterans' Affairs.

3422. A letter from the Board of Trustees, Federal Hospital Insurance Trust Fund, transmitting the 1996 annual report of the Board of Trustees of the Federal Hospital Insurance Trust Fund, pursuant to section 1817(b) of the Social Security Act, as amended. (H. Doc. No. 104-227); to the Committee on Ways and Means and ordered to be printed.

3423. A letter from the Board of Trustees, Federal Old-Age and Survivors Insurance and Disability Insurance Trust Funds, transmitting the 1996 annual report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and the Federal Disability Insurance Trust Funds, pursuant to section 201(c)(2) of the Social Security Act, as amended (H. Doc. No. 104-228); to the Committee on Ways and Means and ordered to be printed.

3424. A letter from the Chief, Regulations Branch, U.S. Customs Service, transmitting the Service's final rule-Rules for Determining the Country of Origin of a Good for Purposes of Annex 311 of the North American Free Trade Agreement (RIN: 1515-AB34) received May 30, 1996, pursuant to 5 U.S.C. 801(a)(1)(A); to the Committee on Ways and Means.

3425. A letter from the Secretaries of the Army and Agriculture, transmitting notification of the intention of the Departments of the Army and Agriculture to interchange jurisdiction of civil works and Forest Service lands at the Corps of Engineers project at Applegate Lake, OR, pursuant to 16 U.S.C. 505a, 505b; jointly, to the Committees on Agriculture and Transportation and Infrastructure.

3426. A letter from the Director, Office of Regulatory Management and Information, Environmental Protection Agency, transmitting the Agency's final rule-Suspension, Debarment and Ineligibility for Contracts, Assistance, Loans and Benefits (FRL-5513-1) received May 30, 1996, pursuant to 5 U.S.C. 801(a)(1)(A); jointly, to the Committees on Commerce and Transportation and Infrastructure.

3427. A letter from the Acting Assistant Secretary for Legislative Affairs, Department of State, transmitting notification of the Department's intent to obligate funds for additional program proposals for purposes of nonproliferation and disarmament fund [NDF] activities, pursuant to Public Law 104-107, title II (110 Stat. 716); jointly, to the Committees on International Relations and Appropriations.

3428. A letter from the Board of Trustees, Federal Supplementary Medical Insurance Trust Fund, transmitting the 1996 annual report of the Board of Trustees of the Federal Supplementary Insurance Trust Fund, pursuant to section 1841(b) of the Social Security Act, as amended (H. Doc. No. 104-226); jointly, to the Committees on Ways and Means and Commerce, and ordered to be printed.

3429. A letter from the Assistant Attorney General of the United States, transmitting a draft of proposed legislation entitled the "Anti-Gang and Youth Violence Control Act of 1996"; jointly, to the Committees on the Judiciary, Commerce, and Ways and Means.

3430. A letter from the Board of Trustees of the Federal Hospital Insurance Trust Fund,

transmitting notification that on April 6, 1993, the Board notified each House of Congress that the reserves of the hospital insurance [HI] trust fund were expected to be exhausted in 1999, on April 11, 1994, the Board affirmed the 1993 notification with a change in the expected date of exhaustion to 2001, and on April 3, 1995, the Board reported that the expected exhaustion date was 2002; as shown in the 1996 trustees report, the HI trust fund is estimated to be exhausted in 2001, the status of the HI trust fund still does not meet the Board's test of short-range financial adequacy, pursuant to section 709 of the Social Security Act; to the Committee on Ways and Means.

168.4 MESSAGE FROM THE PRESIDENT

A message in writing from the President of the United States was communicated to the House by Mr. Edwin Thomas, one of his secretaries.

168.5 MESSAGE FROM THE SENATE

A message from the Senate by Mr. Lundregan, one of its clerks, announced that the Senate had passed a bill of the following title, in which the concurrence of the House is requested: S. 1624. An Act to reauthorize the Hate Crime Statistics Act, and for other purposes. 168.6 MESSAGE FROM THE PRESIDENT

SMALL BUSINESS

The SPEAKER pro tempore, Mr. HEFLEY, laid before the House a message from the President, which was read as follows:

To the Congress of the United States:

I am pleased to transmit to you my annual report on the state of small business, and to report that small businesses are doing exceptionally well. In the year covered by this report, a record 807,000 new firms reported initial employment. Firms in industries dominated by small businesses created almost 60 percent of the nearly 3.3 million new jobs. Business failures and bankruptcies declined at some of the sharpest rates in a decade.

Small businesses have both contributed to and benefited from the recent strength of the economy. The deficit reduction plan I initiated in 1993 has cut the budget deficit in half. The economy has created 8.5 million new jobs since January 1993-almost all of them in the private sector. The combined rate of unemployment and inflation is at its lowest level in more than 25 years.

A major success story has been in the women-owned business sector. Women are creating new businesses and new jobs at double the national rate. Today, women own one-third of all businesses in the United States. Clearly, there is no stopping this fast-growing segment of the economy.

Last June I met in Washington with nearly 2,000 small business ownersparticipants in the national White House Conference on Small Business. They took precious time away from their businesses to tell us about their problems and their ideas for resolving them, turning over a list of 60 recommendations for Government action. Their ideas are reflected in many of the

recent initiatives of my Administration.

Improving Access to Capital

One of the keys to a healthy small business sector is access to adequate start-up and working capital. The Small Business Lending Enhancement Act of 1995, which I signed last October, helped to increase access to capital through the Small Business Administration's (SBA) section 7(a) loan guarantee program. Last year, the SBA provided nearly $11 billion in long-term credit and other financial assistance to than 67,000 small businesses, bringing SBA's total loan portfolio to $26 billion. The number of 7(a) guaranteed loans has increased dramatically, up 52 percent from fiscal year 1994 to fiscal year 1995 and that's with a smaller budget and fewer employees at the SBA. Moreover, during the same period, the number of 7(a) guaranteed loans to women-owned businesses grew by 86 percent; loans to minority-owned businesses increased by 53 percent; and loans to businesses owned by U.S. veterans grew by 43 percent.

Other initiatives are under way. My Administration has been working with banks and banking regulators to remove impediments to small business lending by financial institutions. The Riegle Community Development and Regulatory Improvement Act of 1994 amended the banking and securities laws to promote the growth of a secondary market for small business loans. And my Administration is looking to reduce small business securities filing and disclosure burdens. In June 1995, the Securities and Exchange Commission proposed that regulations would further this small business goal.

Easing the Tax Burden

The Federal Government should reward rather than discourage entrepreneurs who take risks and create jobs. To that end, we have worked to simplify the tax code and make it more equitable for small firms.

In April 1995, I signed legislation to increase to 30 percent the share of health insurance premiums that selfemployed individuals can deduct on their tax returns beginning this tax year-and we're working to increase that amount.

Small firms are less likely than their larger counterparts to be able to provide retirement plans. While 75 percent of workers in businesses with more than 1,000 employees have pension plans, only 24 percent of workers in businesses with fewer than 100 employees have them. I have proposed a new pension plan targeted to the needs of small businesses-the National Employee Savings Trust (NEST). The NEST would provide benefits similar to those of a 401(k) pension plan and would be simple to create and operate.

My Administration has endorsed other improvements that make existing pension plans safer and more beneficial for business owners and employees alike. For example, we have pro

posed to eliminate the "family aggregation" restrictions on pensions for family members, so that spouses or children who work in the same or related businesses can earn their own retirement benefits.

Our 1993 economic plan made 90 percent of small businesses eligible for tax relief. It established a targeted tax preference for capital gains, reduced the record-keeping requirements for the meals and entertainment deduction, and raised the small business expensing limit for equipment by 75 percent, to $17,500. We have proposed to increase further the value of equipment that can be directly expensed to $25,000. My Administration is also taking steps to ensure that tax regulations are as simple and understandable as possible. For example, administrative guidance has been published to provide tax relief to S corporations and partnerships, simplify depreciation computations, and ease inventory capitalization for small businesses.

We are pursuing tax form simplification through our Simplified Tax and Wage Reporting System (STAWRS). This joint effort among Federal and State agencies will simplify, unify, and streamline tax reporting so that taxpayers will eventually be able to file their State and Federal tax and wage returns at one location, electronically. All these efforts will bring tax reporting into the modern age while reducing the paperwork burden for small busi

ness.

Shrinking the Regulatory and Paperwork
Burden

Regulation and paperwork continue to be a key concern of America's small business owners, and I am proud of the progress my Administration has made in addressing this concern. For example, the SBA is streamlining all its regulations and converting them to plain English. An application form for the most common SBA loans used to be an inch thick and take 5 to 6 weeks to approve. We've reduced the form to one page and cut turn-around time to 3 days.

I've said it before: the era of big Government is over. We have been working hard to give the American people a Government that works better and costs less. We are eliminating 16,000 pages of unnecessary regulations and streamlining 31,000 more-shifting decision-making out of Washington and back to States and local communities. In addition, we are directing Federal agencies, where possible, to cut by half the frequency of reports the public is required to provide to the Government.

More broadly, much of our National Performance Review effort to reinvent Government has been pointed specifically at helping small business. The U.S. Business Advisor, which provides Internet access to information from all Federal agencies, and the U.S. General Store for Small Business, which offers business owners one location for dealing with the Federal government, illustrate our commitment to reinventing

how Government serves the small business community.

In March 1995, I announced a new approach to lessening the regulatory burden on small firms. Under this commonsense approach, small businesses can now avoid paying penalties for violations if they correct the problem within an appropriate period of time. And for those violations that may take longer to correct, a small business may get up to 100 percent of its fine waived if that same money is used to correct the violation.

I'm proud to have succeeded in putting more teeth in the Regulatory Flexibility Act (RFA). Under the 1980 Act, Federal Government agencies must analyze their proposed regulations for their effects on small firmsand revise them if they will create an unfair burden. In the past, however, because the agencies' analyses could not be reviewed in the courts, small businesses had no meaningful recourse if an agency made a poor decision. On March 29, I signed into law the Small Business Regulatory Enforcement Fairness Act of 1996, which allows for judicial review of Federal agency RFA analyses. The Act also emphasizes compliance assistance and requires agencies to provide small businesses with simple and clear guidelines to assist them in complying with the regulations that affect them.

As small business owners have told us, they care about environmental protection and occupational safety; after all, they drink the same water, breathe the same air, and share the same workplace hazards as everyone else. My Administration has challenged small businesses and regulatory agencies to find cheaper, more efficient ways than government regulation to meet the high environmental and workplace standards Americans want.

Opening Markets and Expanding Trade Every year the Federal Government spends $200 billion on goods and services, and small businesses receive a substantial share of that market. I am committed to expanding further the opportunities for small businesses to win Federal contracts. I found for the Federal Acquisition Streamlining Act of 1994 and the Federal Acquisition Reform Act of 1996, which have simplified the procurement process and made it easier for small firms to do business with the Federal Government.

The 1994 law also created a new Government-wide electronic commerce system, FACNET, which will eventually permit electronic submission of bids and proposals. I encourage small businesses to take advantage of these new procurement procedures to provide more goods and services to the Government.

In addition to the Federal marketplace, foreign markets offer significant opportunities for small business owners. to compete and win. While the North American Free Trade Agreement (NAFTA) and the General Agreement on Tariffs and Trade (GATT) are opening markets abroad, my Administration's National Export Strategy has

made it easier here at home for small businesses to export. Among other things, we've opened 14 U.S. Export Assistance Centers to provide one-stop access to export information, marketing assistance, and finance.

Technology and Innovation Technological innovation by small firms is a major reason for America's leadership in the world economy. Through the Small Business Innovation Research and Small Business Technology Transfer programs, the Federal Government taps into the brain power of small businesses to meet its own research needs. In the process, these programs help spur technological innovation to foster new businesses and jobs.

The Small Business Innovation Research (SBIR) program alone has nearly doubled awards to small businesses during my Administration-up from $508 million in 1992 to more than $900 million in 1995. And the quality of SBIR research proposals has kept pace with the program's expansion.

We've also dramatically expanded the Manufacturing Extension Partnership to help America's 380,000 smaller manufacturers become more competitive in world markets. Sixty locally managed manufacturing extension centers-up from seven in 1993-are delivering much-needed services to this important small business sector.

As this report documents, changes are coming at lightning speed. Small business owners recognize that they will need all the technological skill and "connectivity" they can muster just to keep up. Through manufacturing extension centers, FACNET, the U.S. Business Advisor, and other information networks, we can help make available the information small businesses need to start up and succeed.

The Human Factor

If the heart of our entrepreneurial economy is small business. then the heart of small business is its peoplesmall business owners and their employees. We need to work with small businesses to strengthen and support this dynamic human resource.

We've seen what business growth can do for communities, and we hope to encourage more business formation in empowerment zones and enterprise communities: legislation before the Congress would provide more tax incentives and waivers of some regulatory requirements in these areas. SBA's one-stop capital shops specifically target empowerment zones and enterprise communities.

As I mentioned earlier, we're taking steps to modify the tax code in ways. that will make it easier for small businesses to offer health care and retirement plans to their employees. We also want to make sure that workers and their families can keep their health insurance even when they change jobs. I have urged the Congress to enact the Kassebaum-Kennedy bill, which would make health insurance coverage more "portable" for our Nation's workers.

We want to make better use of our work force training dollars by consolidating and streamlining many of our Federal work force training programs. Under our proposal, States and localities would have more flexibility to administer these programs in the way that will do the most good for our workers and small business owners.

I'm pleased that young entrepreneurs were represented at the White House Conference on Small Business and that the conference looked to our economic future by endorsing more mentorships and workplace educational opportunities for young people. These privatesector-led efforts form an essential part of the work-based learning program I envisioned when I signed into law the School-to-Work Opportunities Act of 1994.

It takes a great deal of courage to start something new, to carve a reality out of a dream, often with few resources, sometimes in adverse adverse surroundings, and in an economy that demands much of its participants. That is why we celebrate and listen to America's small business owners and why we will continue to look for ways to nurture and support this powerful economic engine the small business sector.

WILLIAM J. CLINTON.

THE WHITE HOUSE, June 5, 1996.

By unanimous consent, the message, together with the accompanying papers, was referred to the Committee on Small Business.

168.7 COMMITTEES AND SUBCOMMITTEES TO SIT

On motion of Mr. UPTON, by unanimous consent, the following committees and their subcommittees were granted permission to sit today during the 5-minute rule: the Committee on Agriculture, the Committee on Banking and Financial Services, the Committee on Government Reform and Oversight, the Committee on the Judiciary, the Committee on Resources, and the Committee on Transportation and Infrastructure.

168.8 PROVIDING FOR THE

CONSIDERATION OF H.R. 3540

Mr. GOSS, by direction of the Committee on Rules, called up the following resolution (H. Res. 445):

Resolved, That at any time after the adoption of this resolution the Speaker may, pursuant to clause 1(b) of rule XXIII, declare the House resolved into the Committee of the Whole House on the state of the Union for consideration of the bill (H.R. 3540) making appropriations for foreign operations, export financing, and related programs for the fiscal year ending September 30, 1997, and for other purposes. The first reading of the bill shall be dispensed with. Points of order against consideration of the bill for failure to comply with clause 1(b) of rule X or clause 7 of rule XXI are waived. General debate shall be confined to the bill and shall not exceed one hour equally divided and controlled by the chairman and ranking minority member of the Committee on Appropriations. After general debate the bill shall be considered for amendment under the five-minute rule. The bill shall be considered by title

rather than by paragraph. Each title shall be considered as read. Points of order against provisions in the bill for failure to comply with clause 2, 5(b), or 6 of rule XXI are waived except as follows: beginning with ": Provided" on page 9, line 12, through "Appropriations" on line 18; and beginning with ": Provided" on page 13, line 20, through "relocation" on page 14, line 5. Where points of order are waived against part of a paragraph, points of order against a provision in another part of such paragraph may be made only against such provision and not against the entire paragraph. During consideration of the bill for amendment, the Chairman of the Committee of the Whole may accord priority in recognition on the basis of whether the Member offering an amendment has caused it to be printed in the portion of the Congressional Record designated for that purpose in clause 6 of rule XXIII. Amendments so printed shall be considered as read. The Chairman of the Committee of the Whole may postpone until a time during further consideration in the Committee of the Whole a request for a recorded vote on any amendment. The Chairman of the Committee of the Whole may reduce to not less than five minutes the time for voting by electronic device on any postponed question that immediately follows another vote by electronic device without intervening business, provided that the time for voting by electronic device on the first in any series of questions shall be not less than fifteen minutes. After the reading of the final lines of the bill, a motion that the Committee of the Whole rise and report the bill to the House with such amendments as may have been adopted shall, if offered by the majority leader or a designee, have precedence over a motion to amend. At the conclusion of consideration of the bill for amendment the Committee shall rise and report the bill to the House with such amendments as may have been adopted. The previous question shall be considered as ordered on the bill and amendments thereto to final passage without intervening motion except one motion to recommit with or without instructions.

When said resolution was considered. After debate,

By unanimous consent, the previous question was ordered on the resolution to its adoption or rejection and under the operation thereof, the resolution was agreed to.

A motion to reconsider the vote whereby said resolution was agreed to was, by unanimous consent, laid on the table.

168.9 FOREIGN OPERATIONS

APPROPRIATIONS

The SPEAKER pro tempore, Mr. HEFLEY, pursuant to House Resolution 445 and rule XXIII, declared the House resolved into the Committee of the Whole House on the state of the Union for the consideration of the bill (H.R. 3540) making appropriations for foreign operations, export financing, and related progams for the fiscal year ending September 30, 1997, and for other purposes.

The SPEAKER pro tempore, Mr. HEFLEY, by unanimous consent, designated Mr. HANSEN as Chairman of the Committee of the Whole; and after some time spent therein,

168.10 RECORDED VOTE

A recorded vote by electronic device was ordered in the Committee of the

of this resolution shall be considered as adopted. The previous question shall be considered as ordered on the bill, as amended, and on any further amendment thereto final passage without intervening motion except: (1) one hour of debate on the bill, as amended, which shall be equally divided and controlled by the chairman and ranking minority member of the Committee on Ways and Means or their respective designees; (2) one motion to amend by Representative Kleczka of Wisconsin or his designee, which shall be considered as read and shall be separately debatable for one hour equally divided and controlled by the proponent and an opponent; and (3) one motion to recommit with or without instructions.

SEC. 2. The amendment to the bill considered as adopted pursuant to the first section of this resolution is as follows:

In section 1(d) of the bill, strike "subsection (b)(2) exceeds the amount described in subsection (b)(1)" and insert in lieu thereof "subsection (b)(1) exceeds the amount described in subsection (b)(2)”.

When said resolution was considered. After debate,

On motion of Mr. SOLOMON, the previous question was ordered on the resolution to its adoption or rejection.

The question being put, viva voce, Will the House agree to said resolution?

The SPEAKER pro tempore, Mr. INGLIS, announced that the yeas had it.

Mr. MOAKLEY objected to the vote on the ground that a quorum was not present and not voting.

A quorum not being present,

The roll was called under clause 4, rule XV, and the call was taken by electronic device.

Wynn

Yates

NOT VOTING-12

Payne (VA)

Schiff

Williams

Markey

So the resolution was agreed to.

A motion to reconsider the vote whereby said resolution was agreed to was, by unanimous consent, laid on the table.

169.7 ORDER OF BUSINESS

CONSIDERATION OF AMENDMENTS-
H.R. 3450

On motion of Mr. CALLAHAN, by unanimous consent,

Ordered, That it may be in order during the further consideration of the bill (H.R. 3450) making appropriations for foreign operations, export financing, and related programs for the fiscal year ending September 30, 1997, and for other purposes, in the Committee of the Whole, pursuant to House Resolution 445, no amendments to the bill shall be in order except the following amendments, if offered by the Member specified or a designee: (1) amendments numbered 54, 58 and 76, by Mr. Obey; (2) amendment numbered 10, by Mr. Frank of Massachusetts; (3) amendment numbered 69, by Mr. Souder; and (4) amendment numbered 75, by Mr. Zimmer; and Ordered further, That debate on each amendment and all amendments thereto be limited to twenty minutes, equally divided and controlled by the proponent and an opponent, except that amendments numbered 54 and 10 shall each be debatable for not to exceed 45 minutes, and consideration of these amendments proceed without intervening motion except one motion to rise if offered by Mr. Callahan.

169.8 "WISCONSIN WORKS"

Mr. ARCHER, pursuant to House Resolution 446, called up the bill (H.R. 3562) to authorize the State of Wisconsin to implement the demonstration project known as "Wisconsin Works".

When said bill was considered and read twice.

Pursuant to section 2 of House Resolution 446, the following amendment was considered agreed to:

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

SECTION 1. AUTHORITY TO IMPLEMENT WISCONSIN WORKS DEMONSTRATION PROJECT.

(a) IN GENERAL.-Upon presentation by the State of Wisconsin of the document entitled "Wisconsin Works" (as signed into State law by the Governor of Wisconsin on April 26, 1996) to the appropriate Federal official with respect to any Federal entitlement program specified in such document

(1) such official is deemed to have waived compliance with the requirements of Federal law with respect to such program to the extent and for the period necessary to enable the State of Wisconsin to carry out the demonstration project described in the document; and

(2) the costs of carrying out the demonstration project which would not other

wise be included as expenditures under such program shall be regarded as expenditures under such program.

(b) LIMITATION OF COSTS.-Subsection (a)(2) shall not apply to the extent that

(1) the sum of such costs and the expenditures of the State of Wisconsin under all programs to which subsection (a) applies during any testing period exceeds.

(2) the total amount that would be expended under such programs during such testing period in the absence of the demonstration project.

(c) TESTING PERIOD.-For purposes of subsection (b), the testing periods are―

(1) the 5-year period that begins with the date of the commencement of the demonstration project, and

(2) the period of the demonstration project. (d) RECAPTURE OF EXCESS.-If at the close of any testing period, the Secretary of Health and Human Services determines that the amount described in subsection (b)(1) exceeds the amount described in subsection (b)(2) for such period, such Secretary shall withhold an amount equal to such excess from amounts otherwise payable to the State of Wisconsin under section 403 of the Social Security Act (relating to the program of aid to families with dependent children) for the first fiscal year beginning after the close of such period. The preceding sentence shall not apply to the extent such Secretary is otherwise paid such excess by the State of Wisconsin.

SEC. 2. NO EFFECT ON CERTAIN OTHER WAIVERS GRANTED TO THE STATE OF WISCONSIN.

This Act shall not be construed to affect the terms or conditions of any waiver granted before the date of the enactment of this Act to the State of Wisconsin under section 1115 of the Social Security Act, including earned waiver savings and conditions. The current waivers are considered a precondition and can be subsumed as part of the Wisconsin Works demonstration. SEC. 3. AUTHORITY TO PARTICIPATE UNDER SUBSEQUENT LEGISLATION.

If, after the date of the enactment of this Act, any Federal law is enacted which modifies the terms of, or the amounts of expenditures permitted under, any program to which section 1 applies, the State of Wisconsin may elect to participate in such program as so modified.

After debate,

Mr. KLECZKA, pursuant to House Resolution 446, submitted the following amendment in the nature of a substitute:

Strike all after the enacting clause and insert:

SECTION 1. URGING IMPLEMENTATION OF WIS

CONSIN WORKS DEMONSTRATION
PROJECT.

Upon presentation by the State of Wisconsin of the document entitled "Wisconsin Works" as signed into state law by the Governor of Wisconsin on April 26, 1996, to the appropriate Federal official with respect to any Federal entitlement program specified in such document, such official is urged to waive compliance with the requirements of Federal law with respect to such program to the extent and for the period necessary to enable the State of Wisconsin to carry out the demonstration described in the document upon meeting these requirements:

(1) Such official shall publish a notice in the Federal Register describing the proposed changes to Federal programs contained in the document scheduled under Wisconsin law to go into effect in October, 1997, and provide for a 30-day comment period to receive public comments from the citizens of Wisconsin and interested parties.

(2) Such official shall provide for expedited consideration of the demonstration project described in the document under the procedures otherwise required by law, except that such official shall complete such consideration not later than July 31, 1996, compatible with the State schedule established in such document.

(3) Such official shall certify that the plan does in fact contain the features described by the Governor of Wisconsin on page four of the document entitled Wisconsin Works, March 1996 (publication number PES893). SEC. 2. PROVIDING FUNDING AUTHORITY FOR

IMPLEMENTATION.

(a) The costs of carrying out the demonstration project which would not otherwise be included as expenditures under such program shall be regarded as expenditures under such program.

(b) LIMITATION OF COSTS.-Subsection (a) shall not apply to the extent that

(1) the sum of such costs and the expenditures of the State of Wisconsin under all programs to which Section 1 applies during any testing period exceeds

(2) the total amount that would be expended under such programs during such testing period in the absence of the demonstration project.

(c) TESTING PERIOD.-For purposes of subsection (b), the testing periods are

(1) the 5-year period that begins with the date of the commencement of the demonstration project, and

(2) the period of the demonstration project. (d) RECAPTURE OF EXCESS.-If at the close of any testing period, the Secretary of Health and Human Services determines that the amount described in subsection (b)(1) exceeds the amount in subsection (b)(2) for such period, such Secretary shall withhold an amount equal to such excess from amounts otherwise payable to the State of Wisconsin under section 403 of the Social Security Act (relating to the program of aid to families with dependent children) for the first fiscal year beginning after the close of such period. The preceding sentence shall not apply to the extent such Secretary is otherwise paid such excess by the State of Wisconsin.

SEC. 3. NO EFFECT ON CERTAIN OTHER WAIVERS GRANTED TO THE STATE OF WISCONSIN.

This Act shall not be construed to affect the terms or conditions of any waiver granted before the date of the enactment of this Act to the State of Wisconsin under section 1115 of the Social Security Act, including earned waiver savings and conditions. The current waivers are considered a precondition and can be subsumed as part of the Wisconsin Works demonstration.

SEC. 4. AUTHORITY TO PARTICIPATE UNDER SUBSEQUENT LEGISLATION.

If, after the date of enactment of this Act, any Federal law is enacted which modifies the terms of, or the amounts of expenditures permitted under, any program to which section 1 applies, the State of Wisconsin may elect to participate in such program as so modified.

SEC. 5. EFFECTIVE DATE.

Sections 2, 3 and 4 of this Act shall become effective on the date that a waiver is approved pursuant to the conditions stated in Section 1.

After some further time.

Pursuant to House Resolution 446 the previous question on the amendment and the bill, as amended, was considered as ordered.

The question being put, viva voce, Will the House agree to the amendment in the nature of a substitute?