[House Report 106-1033]
[From the U.S. Government Publishing Office]
106th Congress
2d Session HOUSE OF REPRESENTATIVES Report
106-1033
_______________________________________________________________________
MAKING OMNIBUS CONSOLIDATED AND EMERGENCY SUPPLEMENTAL APPROPRIATIONS
FOR FISCAL YEAR 2001
__________
CONFERENCE REPORT
To accompany
H.R. 4577
December 15, 2000.--Ordered to be printed
__________
U.S. GOVERNMENT PRINTING OFFICE
67-191 WASHINGTON : 2000
106th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 106-1033
======================================================================
MAKING OMNIBUS CONSOLIDATED AND EMERGENCY SUPPLEMENTAL APPROPRIATIONS
FOR FISCAL YEAR 2001
_______
December 15, 2000.--Ordered to be printed
_______
Mr. Young of Florida, from the committee of conference, submitted the
following
CONFERENCE REPORT
[To accompany H.R. 4577]
The committee of conference on the disagreeing votes of
the two Houses on the amendment of the Senate to the bill (H.R.
4577) ``making appropriations for the Departments of Labor,
Health and Human Services, and Education, and related agencies
for the fiscal year ending September 30, 2001, and for other
purposes'', having met, after full and free conference, have
agreed to recommend and do recommend to their respective Houses
as follows:
That the House recede from its disagreement to the
amendment of the Senate, and agree to the same with amendments,
as follows:
In lieu of the matter stricken and inserted by said
amendment, insert:
Section 1. (a) The provisions of the following bills of
the 106th Congress are hereby enacted into law:
(1) H.R. 5656, as introduced on December 14, 2000.
(2) H.R. 5657, as introduced on December 14, 2000.
(3) H.R. 5658, as introduced on December 14, 2000.
(4) H.R. 5666, as introduced on December 15, 2000.
(5) H.R. 5660, as introduced on December 14, 2000.
(6) H.R. 5661, as introduced on December 14, 2000.
(7) H.R. 5662, as introduced on December 14, 2000.
(8) H.R. 5663, as introduced on December 14, 2000.
(9) H.R. 5667, as introduced on December 15, 2000.
(b) In publishing this Act in slip form and in the United
States Statutes at Large pursuant to section 112 of title 1,
United States Code, the Archivist of the United States shall
include after the date of approval at the end appendixes
setting forth the texts of the bills referred to in subsection
(a) of this section and the text of any other bill enacted into
law by reference by reason of the enactment of this Act.
Sec. 2. (a) Notwithstanding Rule 3 of the Budget
Scorekeeping Guidelines set forth in the joint explanatory
statement of the committee of conference accompanying
Conference Report 105-217, legislation enacted in section 505
of the Department of Transportation and Related Agencies
Appropriations Act, 2001, section 312 of the Legislative Branch
Appropriations Act, 2001, titles X and XI of H.R. 5548 (106th
Congress) as enacted by H.R. 4942 (106th Congress), Division B
of H.R. 5666 (106th Congress) as enacted by this Act, and
sections 1(a)(5) through 1(a)(9) of this Act that would have
been estimated by the Office of Management and Budget as
changing direct spending or receipts under section 252 of the
Balanced Budget and Emergency Deficit Control Act of 1985 were
it included in an Act other than an appropriations Act shall be
treated as direct spending or receipts legislation, as
appropriate, under section 252 of the Balanced Budget and
Emergency Deficit Control Act of 1985.
(b) In preparing the final sequestration report required
by section 254(f)(3) of the Balanced Budget and Emergency
Deficit Control Act of 1985 for fiscal year 2001, in addition
to the information required by that section, the Director of
the Office of Management and Budget shall change any balance of
direct spending and receipts legislation for fiscal year 2001
under section 252 of that Act to zero.
This Act may be cited as the ``Consolidated
Appropriations Act, 2001''.
Amend the title of the bill so as to read:
``An Act making consolidated appropriations for the
fiscal year ending September 30, 2001, and for other
purposes.''.
And the Senate agree to the same.
John Edward Porter,
C.W. Bill Young,
Henry Bonilla,
Ernest J. Istook, Jr.,
Dan Miller,
Jay Dickey,
Roger F. Wicker,
Anne M. Northup,
Randy ``Duke'' Cunningham,
David R. Obey,
Steny H. Hoyer,
Nancy Pelosi,
Nita M. Lowey,
Rosa L. DeLauro,
Jesse L. Jackson, Jr.
(Except elimination of
LIHEAP and CCDBG
advanced funding;
immigration and
charitable choice
provisions.)
Managers on the Part of the House.
Arlen Specter,
Thad Cochran,
Slade Gorton,
Judd Gregg,
Kay Bailey Hutchison,
Ted Stevens,
Pete V. Domenici,
Tom Harkin,
Ernest F. Hollings,
Daniel K. Inouye,
Harry Reid,
Herb Kohl,
Patty Murray,
Dianne Feinstein,
Robert C. Byrd,
Managers on the Part of the Senate.
JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE
The managers on the part of the House and Senate at the
conference on the disagreeing votes of the two Houses on the
amendment of the Senate to the bill (H.R. 4577) making
appropriations for the Departments of Labor, Health and Human
Services, and Education, and Related Agencies, and for other
purposes, submit the following joint statement of the House and
Senate in explanation of the effect of the action agreed upon
by the managers and recommended in the accompanying conference
report.
This conference agreement includes more than the
Departments of Labor, Health and Human Services, and Education,
and Related Agencies Appropriations Act, 2001. The conference
agreement has been expanded to including the Legislative Branch
Appropriations Act, 2001; the Treasury and General Government
Appropriations Act, 2001; the Miscellaneous Appropriations Act,
2001; the Commodity Futures Modernization Act of 2000; the
Medicare, Medicaid, and SCHIP Benefits Improvement and
Protection Act of 2000; the Community Renewal Tax Relief Act of
2000; the New Markets Venture Capital Program Act of 2000; and
the Small Business Reauthorization Act of 2000; as well as the
Departments of Labor, Health and Human Services, and Education,
and Related Agencies Appropriations Act, 2001. The provisions
of all of these Acts have been enacted into law by reference in
this conference report; however, a copy of the referenced
legislation has been included in this statement for
convenience.
DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION, AND
RELATED AGENCIES APPROPRIATIONS
The conference agreement would enact the provisions of
H.R. 5656 as introduced on December 14, 2000. The text of that
bill follows:
A BILL Making appropriations for the Departments of Labor, Health and
Human Services, and Education, and related agencies for the fiscal year
ending September 30, 2001, and for other purposes.
Be it enacted by the Senate and House of Representatives
of the United States of America in Congress assembled, That the
following sums are appropriated, out of any money in the
Treasury not otherwise appropriated, for the Departments of
Labor, Health and Human Services, and Education, and related
agencies for the fiscal year ending September 30, 2001, and for
other purposes, namely:
TITLE I--DEPARTMENT OF LABOR
Employment and Training Administration
training and employment services
For necessary expenses of the Workforce Investment Act,
including the purchase and hire of passenger motor vehicles,
the construction, alteration, and repair of buildings and other
facilities, and the purchase of real property for training
centers as authorized by the Workforce Investment Act; the
Women in Apprenticeship and Nontraditional Occupations Act; and
the National Skill Standards Act of 1994; $3,207,805,000 plus
reimbursements, of which $1,808,465,000 is available for
obligation for the period July 1, 2001 through June 30, 2002;
of which $1,377,965,000 is available for obligation for the
period April 1, 2001 through June 30, 2002, including
$1,102,965,000 to carry out chapter 4 of the Workforce
Investment Act and $275,000,000 to carry out section 169 of
such Act; and of which $20,375,000 is available for the period
July 1, 2001 through June 30, 2004 for necessary expenses of
construction, rehabilitation, and acquisition of Job Corps
centers: Provided, That $9,098,000 shall be for carrying out
section 172 of the Workforce Investment Act, and $3,500,000
shall be for carrying out the National Skills Standards Act of
1994: Provided further, That no funds from any other
appropriation shall be used to provide meal services at or for
Job Corps centers: Provided further, That funds provided to
carry out section 171(d) of such Act may be used for
demonstration projects that provide assistance to new entrants
in the workforce and incumbent workers: Provided further, That
funding provided to carry out projects under section 171 of the
Workforce Investment Act of 1998 that are identified in the
Conference Agreement, shall not be subject to the requirements
of section 171(b)(2)(B) of such Act, the requirements of
section 171(c)(4)(D) of such Act, or the joint funding
requirements of sections 171(b)(2)(A) and 171(c)(4)(A) of such
Act: Provided further, That funding appropriated herein for
Dislocated Worker Employment and Training Activities under
section 132(a)(2)(A) of the Workforce Investment Act of 1998
may be distributed for Dislocated Worker Projects under section
171(d) of the Act without regard to the 10 percent limitation
contained in section 171(d) of the Act: Provided further, That
of the funds made available for Job Corps operating expenses in
the Department of Labor Appropriations Act, 2000, as enacted by
section 1000(a)(4) of Public Law 106-113, $586,487 shall be
paid to the city of Vergennes, Vermont in settlement of the
city's claim: Provided further, That $4,600,000 provided herein
for dislocated worker employment and training activities shall
be made available to the New Mexico Telecommunications Call
Center Training Consortium for training in telecommunications-
related occupations.
For necessary expenses of the Workforce Investment Act,
including the purchase and hire of passenger motor vehicles,
the construction, alteration, and repair of buildings and other
facilities, and the purchase of real property for training
centers as authorized by the Workforce Investment Act;
$2,463,000,000 plus reimbursements, of which $2,363,000,000 is
available for obligation for the period October 1, 2001 through
June 30, 2002, and of which $100,000,000 is available for the
period October 1, 2001 through June 30, 2004, for necessary
expenses of construction, rehabilitation, and acquisition of
Job Corps centers.
community service employment for older americans
To carry out title V of the Older Americans Act of 1965, as
amended, $440,200,000.
federal unemployment benefits and allowances
For payments during the current fiscal year of trade
adjustment benefit payments and allowances under part I; and
for training, allowances for job search and relocation, and
related State administrative expenses under part II,
subchapters B and D, chapter 2, title II of the Trade Act of
1974, as amended, $406,550,000, together with such amounts as
may be necessary to be charged to the subsequent appropriation
for payments for any period subsequent to September 15 of the
current year.
state unemployment insurance and employment service operations
For authorized administrative expenses, $193,452,000,
together with not to exceed $3,172,246,000 (including not to
exceed $1,228,000 which may be used for amortization payments
to States which had independent retirement plans in their State
employment service agencies prior to 1980), which may be
expended from the Employment Security Administration account in
the Unemployment Trust Fund including the cost of administering
section 51 of the Internal Revenue Code of 1986, as amended,
section 7(d) of the Wagner-Peyser Act, as amended, the Trade
Act of 1974, as amended, the Immigration Act of 1990, and the
Immigration and Nationality Act, as amended, and of which the
sums available in the allocation for activities authorized by
title III of the Social Security Act, as amended (42 U.S.C.
502-504), and the sums available in the allocation for
necessary administrative expenses for carrying out 5 U.S.C.
8501-8523, shall be available for obligation by the States
through December 31, 2001, except that funds used for
automation acquisitions shall be available for obligation by
the States through September 30, 2003; and of which
$193,452,000, together with not to exceed $773,283,000 of the
amount which may be expended from said trust fund, shall be
available for obligation for the period July 1, 2001 through
June 30, 2002, to fund activities under the Act of June 6,
1933, as amended, including the cost of penalty mail authorized
under 39 U.S.C. 3202(a)(1)(E) made available to States in lieu
of allotments for such purpose: Provided, That to the extent
that the Average Weekly Insured Unemployment (AWIU) for fiscal
year 2001 is projected by the Department of Labor to exceed
2,396,000, an additional $28,600,000 shall be available for
obligation for every 100,000 increase in the AWIU level
(including a pro rata amount for any increment less than
100,000) from the Employment Security Administration Account of
the Unemployment Trust Fund: Provided further, That funds
appropriated in this Act which are used to establish a national
one-stop career center system, or which are used to support the
national activities of the Federal-State unemployment insurance
programs, may be obligated in contracts, grants or agreements
with non-State entities: Provided further, That funds
appropriated under this Act for activities authorized under the
Wagner-Peyser Act, as amended, and title III of the Social
Security Act, may be used by the States to fund integrated
Employment Service and Unemployment Insurance automation
efforts, notwithstanding cost allocation principles prescribed
under Office of Management and Budget Circular A-87.
advances to the unemployment trust fund and other funds
For repayable advances to the Unemployment Trust Fund as
authorized by sections 905(d) and 1203 of the Social Security
Act, as amended, and to the Black Lung Disability Trust Fund as
authorized by section 9501(c)(1) of the Internal Revenue Code
of 1954, as amended; and for nonrepayable advances to the
Unemployment Trust Fund as authorized by section 8509 of title
5, United States Code, and to the ``Federal unemployment
benefits and allowances'' account, to remain available until
September 30, 2002, $435,000,000.
In addition, for making repayable advances to the Black
Lung Disability Trust Fund in the current fiscal year after
September 15, 2001, for costs incurred by the Black Lung
Disability Trust Fund in the current fiscal year, such sums as
may be necessary.
program administration
For expenses of administering employment and training
programs, $110,651,000, including $6,431,000 to support up to
75 full-time equivalent staff, the majority of which will be
term Federal appointments lasting no more than 1 year, to
administer welfare-to-work grants, together with not to exceed
$48,507,000, which may be expended from the Employment Security
Administration account in the Unemployment Trust Fund.
Pension and Welfare Benefits Administration
salaries and expenses
For necessary expenses for the Pension and Welfare Benefits
Administration, $107,832,000.
Pension Benefit Guaranty Corporation
pension benefit guaranty corporation fund
The Pension Benefit Guaranty Corporation is authorized to
make such expenditures, including financial assistance
authorized by section 104 of Public Law 96-364, within limits
of funds and borrowing authority available to such Corporation,
and in accord with law, and to make such contracts and
commitments without regard to fiscal year limitations as
provided by section 104 of the Government Corporation Control
Act, as amended (31 U.S.C. 9104), as may be necessary in
carrying out the program through September 30, 2001, for such
Corporation: Provided, That not to exceed $11,652,000 shall be
available for administrative expenses of the Corporation:
Provided further, That expenses of such Corporation in
connection with the termination of pension plans, for the
acquisition, protection or management, and investment of trust
assets, and for benefits administration services shall be
considered as non-administrative expenses for the purposes
hereof, and excluded from the above limitation.
Employment Standards Administration
salaries and expenses
For necessary expenses for the Employment Standards
Administration, including reimbursement to State, Federal, and
local agencies and their employees for inspection services
rendered, $361,491,000, together with $1,985,000 which may be
expended from the Special Fund in accordance with sections
39(c), 44(d) and 44(j) of the Longshore and Harbor Workers'
Compensation Act: Provided, That $2,000,000 shall be for the
development of an alternative system for the electronic
submission of reports required to be filed under the Labor-
Management Reporting and Disclosure Act of 1959, as amended,
and for a computer database of the information for each
submission by whatever means, that is indexed and easily
searchable by the public via the Internet: Provided further,
That the Secretary of Labor is authorized to accept, retain,
and spend, until expended, in the name of the Department of
Labor, all sums of money ordered to be paid to the Secretary of
Labor, in accordance with the terms of the Consent Judgment in
Civil Action No. 91-0027 of the United States District Court
for the District of the Northern Mariana Islands (May 21,
1992): Provided further, That the Secretary of Labor is
authorized to establish and, in accordance with 31 U.S.C. 3302,
collect and deposit in the Treasury fees for processing
applications and issuing certificates under sections 11(d) and
14 of the Fair Labor Standards Act of 1938, as amended (29
U.S.C. 211(d) and 214) and for processing applications and
issuing registrations under title I of the Migrant and Seasonal
Agricultural Worker Protection Act (29 U.S.C. 1801 et seq.).
special benefits
(including transfer of funds)
For the payment of compensation, benefits, and expenses
(except administrative expenses) accruing during the current or
any prior fiscal year authorized by title 5, chapter 81 of the
United States Code; continuation of benefits as provided for
under the heading ``Civilian War Benefits'' in the Federal
Security Agency Appropriation Act, 1947; the Employees'
Compensation Commission Appropriation Act, 1944; sections 4(c)
and 5(f) of the War Claims Act of 1948 (50 U.S.C. App. 2012);
and 50 percent of the additional compensation and benefits
required by section 10(h) of the Longshore and Harbor Workers'
Compensation Act, as amended, $56,000,000 together with such
amounts as may be necessary to be charged to the subsequent
year appropriation for the payment of compensation and other
benefits for any period subsequent to August 15 of the current
year: Provided, That amounts appropriated may be used under
section 8104 of title 5, United States Code, by the Secretary
of Labor to reimburse an employer, who is not the employer at
the time of injury, for portions of the salary of a reemployed,
disabled beneficiary: Provided further, That balances of
reimbursements unobligated on September 30, 2000, shall remain
available until expended for the payment of compensation,
benefits, and expenses: Provided further, That in addition
there shall be transferred to this appropriation from the
Postal Service and from any other corporation or
instrumentality required under section 8147(c) of title 5,
United States Code, to pay an amount for its fair share of the
cost of administration, such sums as the Secretary determines
to be the cost of administration for employees of such fair
share entities through September 30, 2001: Provided further,
That of those funds transferred to this account from the fair
share entities to pay the cost of administration, $34,910,000
shall be made available to the Secretary as follows: (1) for
the operation of and enhancement to the automated data
processing systems, including document imaging, medical bill
review, and periodic roll management, in support of Federal
Employees' Compensation Act administration, $23,371,000; (2)
for conversion to a paperless office, $7,005,000; (3) for
communications redesign, $1,750,000; (4) for information
technology maintenance and support, $2,784,000; and (5) the
remaining funds shall be paid into the Treasury as
miscellaneous receipts: Provided further, That the Secretary
may require that any person filing a notice of injury or a
claim for benefits under chapter 81 of title 5, United States
Code, or 33 U.S.C. 901 et seq., provide as part of such notice
and claim, such identifying information (including Social
Security account number) as such regulations may prescribe.
black lung disability trust fund
(including transfer of funds)
For payments from the Black Lung Disability Trust Fund,
$1,028,000,000, of which $975,343,000 shall be available until
September 30, 2002, for payment of all benefits as authorized
by section 9501(d)(1), (2), (4), and (7) of the Internal
Revenue Code of 1954, as amended, and interest on advances as
authorized by section 9501(c)(2) of that Act, and of which
$30,393,000 shall be available for transfer to Employment
Standards Administration, Salaries and Expenses, $21,590,000
for transfer to Departmental Management, Salaries and Expenses,
$318,000 for transfer to Departmental Management, Office of
Inspector General, and $356,000 for payment into miscellaneous
receipts for the expenses of the Department of Treasury, for
expenses of operation and administration of the Black Lung
Benefits program as authorized by section 9501(d)(5) of that
Act: Provided, That, in addition, such amounts as may be
necessary may be charged to the subsequent year appropriation
for the payment of compensation, interest, or other benefits
for any period subsequent to August 15 of the current year.
Occupational Safety and Health Administration
salaries and expenses
For necessary expenses for the Occupational Safety and
Health Administration, $425,983,000, including not to exceed
$88,493,000 which shall be the maximum amount available for
grants to States under section 23(g) of the Occupational Safety
and Health Act, which grants shall be no less than 50 percent
of the costs of State occupational safety and health programs
required to be incurred under plans approved by the Secretary
under section 18 of the Occupational Safety and Health Act of
1970; and, in addition, notwithstanding 31 U.S.C. 3302, the
Occupational Safety and Health Administration may retain up to
$750,000 per fiscal year of training institute course tuition
fees, otherwise authorized by law to be collected, and may
utilize such sums for occupational safety and health training
and education grants: Provided, That, notwithstanding 31 U.S.C.
3302, the Secretary of Labor is authorized, during the fiscal
year ending September 30, 2001, to collect and retain fees for
services provided to Nationally Recognized Testing
Laboratories, and may utilize such sums, in accordance with the
provisions of 29 U.S.C. 9a, to administer national and
international laboratory recognition programs that ensure the
safety of equipment and products used by workers in the
workplace: Provided further, That none of the funds
appropriated under this paragraph shall be obligated or
expended to prescribe, issue, administer, or enforce any
standard, rule, regulation, or order under the Occupational
Safety and Health Act of 1970 which is applicable to any person
who is engaged in a farming operation which does not maintain a
temporary labor camp and employs 10 or fewer employees:
Provided further, That no funds appropriated under this
paragraph shall be obligated or expended to administer or
enforce any standard, rule, regulation, or order under the
Occupational Safety and Health Act of 1970 with respect to any
employer of 10 or fewer employees who is included within a
category having an occupational injury lost workday case rate,
at the most precise Standard Industrial Classification Code for
which such data are published, less than the national average
rate as such rates are most recently published by the
Secretary, acting through the Bureau of Labor Statistics, in
accordance with section 24 of that Act (29 U.S.C. 673),
except--
(1) to provide, as authorized by such Act,
consultation, technical assistance, educational and
training services, and to conduct surveys and studies;
(2) to conduct an inspection or investigation in
response to an employee complaint, to issue a citation
for violations found during such inspection, and to
assess a penalty for violations which are not corrected
within a reasonable abatement period and for any
willful violations found;
(3) to take any action authorized by such Act with
respect to imminent dangers;
(4) to take any action authorized by such Act with
respect to health hazards;
(5) to take any action authorized by such Act with
respect to a report of an employment accident which is
fatal to one or more employees or which results in
hospitalization of two or more employees, and to take
any action pursuant to such investigation authorized by
such Act; and
(6) to take any action authorized by such Act with
respect to complaints of discrimination against
employees for exercising rights under such Act:
Provided further, That the foregoing proviso shall not apply to
any person who is engaged in a farming operation which does not
maintain a temporary labor camp and employs 10 or fewer
employees.
Mine Safety and Health Administration
salaries and expenses
For necessary expenses for the Mine Safety and Health
Administration, $246,747,000, including purchase and bestowal
of certificates and trophies in connection with mine rescue and
first-aid work, and the hire of passenger motor vehicles;
including up to $1,000,000 for mine rescue and recovery
activities, which shall be available only to the extent that
fiscal year 2001 obligations for these activities exceed
$1,000,000; in addition, not to exceed $750,000 may be
collected by the National Mine Health and Safety Academy for
room, board, tuition, and the sale of training materials,
otherwise authorized by law to be collected, to be available
for mine safety and health education and training activities,
notwithstanding 31 U.S.C. 3302; and, in addition, the Mine
Safety and Health Administration may retain up to $1,000,000
from fees collected for the approval and certification of
equipment, materials, and explosives for use in mines, and may
utilize such sums for such activities; the Secretary is
authorized to accept lands, buildings, equipment, and other
contributions from public and private sources and to prosecute
projects in cooperation with other agencies, Federal, State, or
private; the Mine Safety and Health Administration is
authorized to promote health and safety education and training
in the mining community through cooperative programs with
States, industry, and safety associations; and any funds
available to the department may be used, with the approval of
the Secretary, to provide for the costs of mine rescue and
survival operations in the event of a major disaster.
Bureau of Labor Statistics
salaries and expenses
For necessary expenses for the Bureau of Labor Statistics,
including advances or reimbursements to State, Federal, and
local agencies and their employees for services rendered,
$374,327,000, together with not to exceed $67,257,000, which
may be expended from the Employment Security Administration
account in the Unemployment Trust Fund; and $10,000,000 which
shall be available able for obligation for the period July 1,
2001 through June 30, 2002, for Occupational Employment
Statistics.
Departmental Management
salaries and expenses
For necessary expenses for Departmental Management,
including the hire of three sedans, and including the
management or operation, through contracts, grants or other
arrangements of Departmental bilateral and multilateral foreign
technical assistance, of which the funds designated to carry
out bilateral assistance under the international child labor
initiative shall be available for obligation through September
30, 2002, and $37,000,000 for the acquisition of Departmental
information technology, architecture, infrastructure,
equipment, software and related needs which will be allocated
by the Department's Chief Information Officer in accordance
with the Department's capital investment management process to
assure a sound investment strategy; $380,529,000; together with
not to exceed $310,000, which may be expended from the
Employment Security Administration account in the Unemployment
Trust Fund: Provided, That no funds made available by this Act
may be used by the Solicitor of Labor to participate in a
review in any United States court of appeals of any decision
made by the Benefits Review Board under section 21 of the
Longshore and Harbor Workers' Compensation Act (33 U.S.C. 921)
where such participation is precluded by the decision of the
United States Supreme Court in Director, Office of Workers'
Compensation Programs v. Newport News Shipbuilding, 115 S. Ct.
1278 (1995), notwithstanding any provisions to the contrary
contained in Rule 15 of the Federal Rules of Appellate
Procedure: Provided further, That no funds made available by
this Act may be used by the Secretary of Labor to review a
decision under the Longshore and Harbor Workers' Compensation
Act (33 U.S.C. 901 et seq.) that has been appealed and that has
been pending before the Benefits Review Board for more than 12
months: Provided further, That any such decision pending a
review by the Benefits Review Board for more than 1 year shall
be considered affirmed by the Benefits Review Board on the 1-
year anniversary of the filing of the appeal, and shall be
considered the final order of the Board for purposes of
obtaining a review in the United States courts of appeals:
Provided further, That these provisions shall not be applicable
to the review or appeal of any decision issued under the Black
Lung Benefits Act (30 U.S.C. 901 et seq.): Provided further,
That beginning in fiscal year 2001, there is established in the
Department of Labor an office of disability employment policy
which shall, under the overall direction of the Secretary,
provide leadership, develop policy and initiatives, and award
grants furthering the objective of eliminating barriers to the
training and employment of people with disabilities. Such
office shall be headed by an assistant secretary: Provided
further, That of amounts provided under this head, not more
than $23,002,000 is for this purpose.
veterans employment and training
Not to exceed $186,913,000 may be derived from the
Employment Security Administration account in the Unemployment
Trust Fund to carry out the provisions of 38 U.S.C. 4100-4110A,
4212, 4214, and 4321-4327, and Public Law 103-353, and which
shall be available for obligation by the States through
December 31, 2001. To carry out the Stewart B. McKinney
Homeless Assistance Act and section 168 of the Workforce
Investment Act of 1998, $24,800,000, of which $7,300,000 shall
be available for obligation for the period July 1, 2001,
through June 30, 2002.
office of inspector general
For salaries and expenses of the Office of Inspector
General in carrying out the provisions of the Inspector General
Act of 1978, as amended, $50,015,000, together with not to
exceed $4,770,000, which may be expended from the Employment
Security Administration account in the Unemployment Trust Fund.
GENERAL PROVISIONS
Sec. 101. None of the funds appropriated in this title for
the Job Corps shall be used to pay the compensation of an
individual, either as direct costs or any proration as an
indirect cost, at a rate in excess of Executive Level II.
(transfer of funds)
Sec. 102. Not to exceed 1 percent of any discretionary
funds (pursuant to the Balanced Budget and Emergency Deficit
Control Act of 1985, as amended) which are appropriated for the
current fiscal year for the Department of Labor in this Act may
be transferred between appropriations, but no such
appropriation shall be increased by more than 3 percent by any
such transfer: Provided, That the Appropriations Committees of
both Houses of Congress are notified at least 15 days in
advance of any transfer.
Sec. 103. Section 403(a)(5)(C)(viii) of the Social Security
Act (42 U.S.C. 603(a)(5)(C)(viii)) (as amended by section
801(b)(1)(A) of the Departments of Labor, Health and Human
Services, and Education, and Related Agencies Appropriations
Act, 2000 (as enacted into law by section 1000(a)(4) of Public
Law 106-113)) is amended by striking ``3 years'' and inserting
``5 years''.
Sec. 104. No funds appropriated in this Act or any other
Act making appropriations for fiscal year 2001 may be used to
implement or enforce the proposed and final regulations
appearing in 65 Fed. Reg. 43528-43583, regarding temporary
alien labor certification applications and petitions for
admission of nonimmigrant workers, or any similar or successor
rule with an effective date prior to October 1, 2001: Provided,
That nothing in this section shall prohibit the development or
revision of such a rule, or the publication of any similar or
successor proposed or final rule, or the provision of training
or technical assistance, or other activities necessary and
appropriate in preparing to implement such a rule with an
effective date after September 30, 2001.
Sec. 105. Section 218(c)(4) of the Immigration and
Nationality Act (8 U.S.C. 1188(c)(4)) is amended by adding at
the end the following new sentence: ``The determination as to
whether the housing furnished by an employer for an H-2A worker
meets the requirements imposed by this paragraph must be made
prior to the date specified in paragraph (3)(A) by which the
Secretary of Labor is required to make a certification
described in subsection (a)(1) with respect to a petition for
the importation of such worker.''.
Sec. 106. Section 286(s)(6) of the Immigration and
Naturalization Act (8 U.S.C. 1356(s)(6)) is amended by
inserting, ``and section 212(a)(5)(A)'' after the second
reference to ``section 212(n)(1)''.
Sec. 107. (a) Section 403(a)(5) of the Social Security Act
(as amended by section 806(b) of the Departments of Labor,
Health and Human Services, and Education, and Related Agencies
Appropriations Act, 2000 (as enacted into law by section
1000(a)(4) of Public Law 106-113)) is amended by striking
subparagraph (E) and redesignating subparagraphs (F) through
(K) as subparagraphs (E) through (J), respectively.
(b) The Social Security Act (as amended by section 806(b)
of the Departments of Labor, Health and Human Services, and
Education, and Related Agencies Appropriations Act, 2000 (as
enacted into law by section 1000(a)(4) of Public Law 106-113))
is further amended as follows:
(1) Section 403(a)(5)(A)(i) (42 U.S.C.
603(a)(5)(A)(i)) is amended by striking ``subparagraph
(I)'' and inserting ``subparagraph (H)''.
(2) Subclause (I) of each of subparagraphs (A)(iv)
and (B)(v) of section 403(a)(5) (42 U.S.C.
603(a)(5)(A)(iv)(I) and (B)(v)(I)) is amended--
(A) in item (aa)--
(i) by striking ``(I)'' and
inserting ``(H)''; and
(ii) by striking ``(G), and (H)''
and inserting ``and (G)''; and
(B) in item (bb), by striking ``(F)'' and
inserting ``(E)''.
(3) Section 403(a)(5)(B)(v) (42 U.S.C.
603(a)(5)(B)(v)) is amended in the matter preceding
subclause (I) by striking ``(I)'' and inserting
``(H)''.
(4) Subparagraphs (E), (F), and (G)(i) of section
403(a)(5) (42 U.S.C. 603(a)(5)), as so redesignated by
subsection (a) of this section, are each amended by
striking ``(I)'' and inserting ``(H)''.
(5) Section 412(a)(3)(A) (42 U.S.C. 612(a)(3)(A))
is amended by striking ``403(a)(5)(I)'' and inserting
``403(a)(5)(H)''.
(c) Section 403(a)(5)(H)(i)(II) of such Act (42 U.S.C.
603(a)(5)(H)(i))(II) (as redesignated by subsection (a) of this
section and as amended by section 806(b) of the Departments of
Labor, Health and Human Services, and Education, and Related
Agencies Appropriations Act, 2000 (as enacted into law by
section 1000(a)(4) of Public Law 106-113)) is further amended
by striking ``$1,450,000,000'' and inserting
``$1,400,000,000''.
(d) The amendments made by subsections (a), (b), and (c) of
this section shall take effect on October 1, 2000.
This title may be cited as the ``Department of Labor
Appropriations Act, 2001''.
TITLE II--DEPARTMENT OF HEALTH AND HUMAN SERVICES
Health Resources and Services Administration
health resources and services
For carrying out titles II, III, VII, VIII, X, XII, XIX,
and XXVI of the Public Health Service Act, section 427(a) of
the Federal Coal Mine Health and Safety Act, title V and
section 1820 of the Social Security Act, the Health Care
Quality Improvement Act of 1986, as amended, the Native
Hawaiian Health Care Act of 1988, as amended, and the Poison
Control Center Enhancement and Awareness Act, $5,525,476,000,
of which $226,224,000 shall be available for the construction
and renovation of health care and other facilities, and of
which $25,000,000 from general revenues, notwithstanding
section 1820(j) of the Social Security Act, shall be available
for carrying out the Medicare rural hospital flexibility grants
program under section 1820 of such Act: Provided, That the
Division of Federal Occupational Health may utilize personal
services contracting to employ professional management/
administrative and occupational health professionals: Provided
further, That of the funds made available under this heading,
$250,000 shall be available until expended for facilities
renovations at the Gillis W. Long Hansen's Disease Center:
Provided further, That in addition to fees authorized by
section 427(b) of the Health Care Quality Improvement Act of
1986, fees shall be collected for the full disclosure of
information under the Act sufficient to recover the full costs
of operating the National Practitioner Data Bank, and shall
remain available until expended to carry out that Act: Provided
further, That fees collected for the full disclosure of
information under the ``Health Care Fraud and Abuse Data
Collection Program,'' authorized by section 1128E(d)(2) of the
Social Security Act, shall be sufficient to recover the full
costs of operating the program, and shall remain available
until expended to carry out that Act: Provided further, That no
more than $5,000,000 is available for carrying out the
provisions of Public Law 104-73: Provided further, That of the
funds made available under this heading, $253,932,000 shall be
for the program under title X of the Public Health Service Act
to provide for voluntary family planning projects: Provided
further, That amounts provided to said projects under such
title shall not be expended for abortions, that all pregnancy
counseling shall be nondirective, and that such amounts shall
not be expended for any activity (including the publication or
distribution of literature) that in any way tends to promote
public support or opposition to any legislative proposal or
candidate for public office: Provided further, That
$589,000,000 shall be for State AIDS Drug Assistance Programs
authorized by section 2616 of the Public Health Service Act:
Provided further, That of the amount provided under this
heading, $700,000 shall be for the American Federation of Negro
Affairs Education and Research Fund of Philadelphia, $900,000
shall be for the Des Moines University Osteopathic Medical
Center, $250,000 shall be for the University of Alaska,
Anchorage, to train Alaska Natives as psychologists, $900,000
shall be for Northeastern University in Boston, Massachusetts
to train doctors to serve in low-income communities, $500,000
shall be for the University of Alaska, Anchorage, to recruit
and train nurses in rural areas, and $230,000 shall be for the
Illinois Poison Center: Provided further, That, notwithstanding
section 502(a)(1) of the Social Security Act, not to exceed
$113,728,000 is available for carrying out special projects of
regional and national significance pursuant to section
501(a)(2) of such Act, of which $5,000,000 is for Columbia
Hospital for Women Medical Center in Washington, D.C., to
support community outreach programs for women, $5,000,000 is
for continuation of the traumatic brain injury State
demonstration projects, and $100,000 is for St. Joseph's Health
Services of Rhode Island for the Providence Smiles dental
program for low-income children.
For special projects of regional and national significance
under section 501(a)(2) of the Social Security Act,
$30,000,000, which shall become available on October 1, 2001,
and shall remain available until September 30, 2002: Provided,
That such amount shall not be counted toward compliance with
the allocation required in section 502(a)(1) of such Act:
Provided further, That such amount shall be used only for
making competitive grants to provide abstinence education (as
defined in section 510(b)(2) of such Act) to adolescents and
for evaluations (including longitudinal evaluations) of
activities under the grants and for Federal costs of
administering the grants: Provided further, That grants shall
be made only to public and private entities which agree that,
with respect to an adolescent to whom the entities provide
abstinence education under such grant, the entities will not
provide to that adolescent any other education regarding sexual
conduct, except that, in the case of an entity expressly
required by law to provide health information or services the
adolescent shall not be precluded from seeking health
information or services from the entity in a different setting
than the setting in which the abstinence education was
provided: Provided further, That the funds expended for such
evaluations may not exceed 3.5 percent of such amount.
health education assistance loans program
Such sums as may be necessary to carry out the purpose of
the program, as authorized by title VII of the Public Health
Service Act, as amended. For administrative expenses to carry
out the guaranteed loan program, including section 709 of the
Public Health Service Act, $3,679,000.
vaccine injury compensation program trust fund
For payments from the Vaccine Injury Compensation Program
Trust Fund, such sums as may be necessary for claims associated
with vaccine-related injury or death with respect to vaccines
administered after September 30, 1988, pursuant to subtitle 2
of title XXI of the Public Health Service Act, to remain
available until expended: Provided, That for necessary
administrative expenses, not to exceed $2,992,000 shall be
available from the Trust Fund to the Secretary of Health and
Human Services.
Centers for Disease Control and Prevention
disease control, research, and training
To carry out titles II, III, VII, XI, XV, XVII, XIX and
XXVI of the Public Health Service Act, sections 101, 102, 103,
201, 202, 203, 301, and 501 of the Federal Mine Safety and
Health Act of 1977, sections 20, 21, and 22 of the Occupational
Safety and Health Act, of 1970, title IV of the Immigration and
Nationality Act and section 501 of the Refugee Education
Assistance Act of 1980; including insurance of official motor
vehicles in foreign countries; and hire, maintenance, and
operation of aircraft, $3,868,027,000, of which $175,000,000
shall remain available until expended for the facilities master
plan for equipment and construction and renovation of
facilities, and in addition, such sums as may be derived from
authorized user fees, which shall be credited to this account,
and of which $104,527,000 for international HIV/AIDS programs
shall remain available until September 30, 2002: Provided, That
in addition to amounts provided herein, up to $71,690,000 shall
be available from amounts available under section 241 of the
Public Health Service Act to carry out the National Center for
Health Statistics Surveys: Provided further, That none of the
funds made available for injury prevention and control at the
Centers for Disease Control and Prevention may be used to
advocate or promote gun control: Provided further, That the
Director may redirect the total amount made available under
authority of Public Law 101-502, section 3, dated November 3,
1990, to activities the Director may so designate: Provided
further, That the Congress is to be notified promptly of any
such transfer: Provided further, That not to exceed $10,000,000
may be available for making grants under section 1509 of the
Public Health Service Act to not more than 15 States: Provided
further, That notwithstanding any other provision of law, a
single contract or related contracts for development and
construction of facilities may be employed which collectively
include the full scope of the project: Provided further, That
the solicitation and contract shall contain the clause
``availability of funds'' found at 48 CFR 52.232-18: Provided
further, That funds obligated for influenza vaccine stockpile
in fiscal year 2000 and fiscal year 2001 shall be considered as
appropriated under Section 3 of Public Law 101-502.
National Institutes of Health
national cancer institute
For carrying out section 301 and title IV of the Public
Health Service Act with respect to cancer, $3,757,242,000.
national heart, lung, and blood institute
For carrying out section 301 and title IV of the Public
Health Service Act with respect to cardiovascular, lung, and
blood diseases, and blood and blood products, $2,299,866,000.
national institute of dental and craniofacial research
For carrying out section 301 and title IV of the Public
Health Service Act with respect to dental disease,
$306,448,000.
national institute of diabetes and digestive and kidney diseases
For carrying out section 301 and title IV of the Public
Health Service Act with respect to diabetes and digestive and
kidney disease, $1,303,385,000.
national institute of neurological disorders and stroke
For carrying out section 301 and title IV of the Public
Health Service Act with respect to neurological disorders and
stroke, $1,176,482,000.
national institute of allergy and infectious diseases
For carrying out section 301 and title IV of the Public
Health Service Act with respect to allergy and infectious
diseases, $2,043,208,000.
national institute of general medical sciences
For carrying out section 301 and title IV of the Public
Health Service Act with respect to general medical sciences,
$1,535,823,000.
national institute of child health and human development
For carrying out section 301 and title IV of the Public
Health Service Act with respect to child health and human
development, $976,455,000.
national eye institute
For carrying out section 301 and title IV of the Public
Health Service Act with respect to eye diseases and visual
disorders, $510,611,000.
national institute of environmental health sciences
For carrying out sections 301 and 311 and title IV of the
Public Health Service Act with respect to environmental health
sciences, $502,549,000.
national institute on aging
For carrying out section 301 and title IV of the Public
Health Service Act with respect to aging, $786,039,000.
national institute of arthritis and musculoskeletal and skin diseases
For carrying out section 301 and title IV of the Public
Health Service Act with respect to arthritis and
musculoskeletal and skin diseases, $396,687,000.
national institute on deafness and other communication disorders
For carrying out section 301 and title IV of the Public
Health Service Act with respect to deafness and other
communication disorders, $300,581,000.
national institute of nursing research
For carrying out section 301 and title IV of the Public
Health Service Act with respect to nursing research,
$104,370,000.
national institute on alcohol abuse and alcoholism
For carrying out section 301 and title IV of the Public
Health Service Act with respect to alcohol abuse and
alcoholism, $340,678,000.
national institute on drug abuse
For carrying out section 301 and title IV of the Public
Health Service Act with respect to drug abuse, $781,327,000.
national institute of mental health
For carrying out section 301 and title IV of the Public
Health Service Act with respect to mental health,
$1,107,028,000.
national human genome research institute
For carrying out section 301 and title IV of the Public
Health Service Act with respect to human genome research,
$382,384,000.
national center for research resources
For carrying out section 301 and title IV of the Public
Health Service Act with respect to research resources and
general research support grants, $817,475,000: Provided, That
none of these funds shall be used to pay recipients of the
general research support grants program any amount for indirect
expenses in connection with such grants: Provided further, That
$75,000,000 shall be for extramural facilities construction
grants.
john e. fogarty international center
For carrying out the activities at the John E. Fogarty
International Center, $50,514,000.
national library of medicine
For carrying out section 301 and title IV of the Public
Health Service Act with respect to health information
communications, $246,801,000, of which $4,000,000 shall be
available until expended for improvement of information
systems: Provided, That in fiscal year 2001, the Library may
enter into personal services contracts for the provision of
services in facilities owned, operated, or constructed under
the jurisdiction of the National Institutes of Health.
national center for complementary and alternative medicine
For carrying out section 301 and title IV of the Public
Health Service Act with respect to complementary and
alternative medicine, $89,211,000.
national center on minority health and health disparities
For carrying out section 301 and title IV of the Public
Health Service Act with respect to minority health and health
disparities research, $130,200,000.
office of the director
(including transfer of funds)
For carrying out the responsibilities of the Office of the
Director, National Institutes of Health, $213,581,000, of which
$48,271,000 shall be for the Office of AIDS Research: Provided,
That funding shall be available for the purchase of not to
exceed 20 passenger motor vehicles for replacement only:
Provided further, That the Director may direct up to 1 percent
of the total amount made available in this or any other Act to
all National Institutes of Health appropriations to activities
the Director may so designate: Provided further, That no such
appropriation shall be decreased by more than 1 percent by any
such transfers and that the Congress is promptly notified of
the transfer: Provided further, That the National Institutes of
Health is authorized to collect third party payments for the
cost of clinical services that are incurred in National
Institutes of Health research facilities and that such payments
shall be credited to the National Institutes of Health
Management Fund: Provided further, That all funds credited to
the National Institutes of Health Management Fund shall remain
available for one fiscal year after the fiscal year in which
they are deposited: Provided further, That up to $500,000 shall
be available to carry out section 499 of the Public Health
Service Act: Provided further, That, notwithstanding section
499(k)(10) of the Public Health Service Act, funds from the
Foundation for the National Institutes of Health may be
transferred to the National Institutes of Health.
buildings and facilities
For the study of, construction of, and acquisition of
equipment for, facilities of or used by the National Institutes
of Health, including the acquisition of real property,
$153,790,000, to remain available until expended, of which
$47,300,000 shall be for the National Neuroscience Research
Center: Provided, That notwithstanding any other provision of
law, a single contract or related contracts for the development
and construction of the first phase of the National
Neuroscience Research Center may be employed which collectively
include the full scope of the project: Provided further, That
the solicitation and contract shall contain the clause
``availability of funds'' found at 48 CFR 52.232-18.
Substance Abuse and Mental Health Services Administration
substance abuse and mental health services
For carrying out titles V and XIX of the Public Health
Service Act with respect to substance abuse and mental health
services, the Protection and Advocacy for Mentally Ill
Individuals Act of 1986, and section 301 of the Public Health
Service Act with respect to program management, $2,958,001,000,
of which $24,605,000 shall be available for the projects and in
the amounts specified in the statement of the managers on the
conference report accompanying this Act.
Agency for Healthcare Research and Quality
healthcare research and quality
For carrying out titles III and IX of the Public Health
Service Act, and part A of title XI of the Social Security Act,
$104,963,000; in addition, amounts received from Freedom of
Information Act fees, reimbursable and interagency agreements,
and the sale of data shall be credited to this appropriation
and shall remain available until expended: Provided, That the
amount made available pursuant to section 926(b) of the Public
Health Service Act shall not exceed $164,980,000.
Health Care Financing Administration
grants to states for medicaid
For carrying out, except as otherwise provided, titles XI
and XIX of the Social Security Act, $93,586,251,000, to remain
available until expended.
For making, after May 31, 2001, payments to States under
title XIX of the Social Security Act for the last quarter of
fiscal year 2001 for unanticipated costs, incurred for the
current fiscal year, such sums as may be necessary.
For making payments to States or in the case of section
1928 on behalf of States under title XIX of the Social Security
Act for the first quarter of fiscal year 2002, $36,207,551,000,
to remain available until expended.
Payment under title XIX may be made for any quarter with
respect to a State plan or plan amendment in effect during such
quarter, if submitted in or prior to such quarter and approved
in that or any subsequent quarter.
payments to health care trust funds
For payment to the Federal Hospital Insurance and the
Federal Supplementary Medical Insurance Trust Funds, as
provided under sections 217(g) and 1844 of the Social Security
Act, sections 103(c) and 111(d) of the Social Security
Amendments of 1965, section 278(d) of Public Law 97-248, and
for administrative expenses incurred pursuant to section 201(g)
of the Social Security Act, $70,381,600,000.
program management
For carrying out, except as otherwise provided, titles XI,
XVIII, XIX, and XXI of the Social Security Act, titles XIII and
XXVII of the Public Health Service Act, and the Clinical
Laboratory Improvement Amendments of 1988, not to exceed
$2,246,326,000, to be transferred from the Federal Hospital
Insurance and the Federal Supplementary Medical Insurance Trust
Funds, as authorized by section 201(g) of the Social Security
Act; together with all funds collected in accordance with
section 353 of the Public Health Service Act and such sums as
may be collected from authorized user fees and the sale of
data, which shall remain available until expended, and together
with administrative fees collected relative to Medicare
overpayment recovery activities, which shall remain available
until expended: Provided, That all funds derived in accordance
with 31 U.S.C. 9701 from organizations established under title
XIII of the Public Health Service Act shall be credited to and
available for carrying out the purposes of this appropriation:
Provided further, That $18,000,000 appropriated under this
heading for the managed care system redesign shall remain
available until expended: Provided further, That $20,000,000 of
the amount available for research, demonstration, and
evaluation activities shall be available to continue carrying
out demonstration projects on Medicaid coverage of community-
based attendant care services for people with disabilities
which ensures maximum control by the consumer to select and
manage their attendant care services: Provided further, That
the Secretary of Health and Human Services is directed to enter
into an agreement with the Mind-Body Institute of Boston,
Massachusetts to conduct a demonstration of a lifestyle
modification program: Provided further, That $2,800,000 of the
amount available for research, demonstration, and evaluation
activities shall be awarded for administration, evaluation,
quality monitoring and peer review of this lifestyle
modification demonstration: Provided further, That $2,800,000
of the amount available for research, demonstration, and
evaluation activities shall be awarded to a joint application
from the University of Pittsburgh, Case Western Reserve in
Cleveland, Ohio, and Mt. Sinai Hospital in Miami, Florida, to
use integrated nursing services and technology to implement
daily monitoring of congestive heart failure patients in
underserved populations in accordance with established clinical
guidelines: Provided further, That $500,000 of the amount
available for research, demonstration, and evaluation
activities shall be awarded to the University of Pittsburgh
Medical Center and University of Pennsylvania for a study of
the efficacy of surgical versus non-surgical management of
abdominal aneurysms: Provided further, That $650,000 of the
amount available for research, demonstration, and evaluation
activities shall be awarded to the Vascular Surgery Outcomes
Initiative at Dartmouth College: Provided further, That up to
$300,000 of the amount available for research, demonstration,
and evaluation activities shall be awarded to the United
States-Mexico Border Counties Coalition for a study to
determine the unreimbursed costs incurred to treat undocumented
aliens for medical emergencies in southwest border States,
their border counties, and hospitals within the jurisdiction of
these States and counties: Provided further, That $1,700,000 of
the amount available for research, demonstration, and
evaluation activities shall be awarded to the AIDS Healthcare
Foundation in Los Angeles for a demonstration of residential
and outpatient treatment facilities: Provided further, That
$350,000 of the amount available for research, demonstration,
and evaluation activities shall be awarded to the Cook County,
Illinois Bureau of Health for the Asthma Champion Initiative
demonstration to reduce morbidity and mortality from asthma in
high prevalence areas: Provided further, That $1,000,000 of the
amount available for research, demonstration, and evaluation
activities shall be awarded to the West Virginia University
School of Medicine's Eye Center to test interventions and
improve the quality of life for individuals with low vision,
with a particular focus on the elderly: Provided further, That
$1,000,000 of the amount available for research, demonstration,
and evaluation activities shall be awarded to the Iowa
Department of Public Health for the establishment and operation
of a mercantile prescription drug purchasing cooperative or
non-profit corporation demonstration: Provided further, That
$691,000 of the amount available for research, demonstration,
and evaluation activities shall be awarded to Ohio State
University to determine the benefits of compliance packaging:
Provided further, That $855,000 of the amount available for
research, demonstration and evaluation activities shall be
awarded to Children's Hospice International for a demonstration
project to provide a continuum of care for children with life-
threatening conditions and their families: Provided further,
That $921,000 of the amount available for research,
demonstration, and evaluation activities shall be awarded to
Equip for Equality for a demonstration project to document the
impact of an independent investigative unit that will examine
deaths or other serious allegations of abuse and neglect of
people with disabilities at facilities in Illinois: Provided
further, That $1,000,000 of the amount available for research,
demonstration, and evaluation activities shall be awarded to
Duke University Medical Center to demonstrate the potential
savings in the Medicare program of a reimbursement system based
on preventative care: Provided further, That $1,843,000 of the
amount available for research, demonstration, and evaluation
activities shall be awarded to Bucks County, Pennsylvania, for
a health improvement project: Provided further, That $255,000
of the amount available for research, demonstration, and
evaluation activities shall be awarded to the LA Care Health
Plan in Los Angeles, California for a demonstration program to
improve clinical data coordination among Medicaid providers:
Provided further, That $646,000 of the amount available for
research, demonstration, and evaluation activities shall be for
the Shelby County Regional Medical Center to establish a Master
Patient Index to determine patient Medicaid/TennCare
eligibility: Provided further, That the Secretary of Health and
Human Services is directed to collect fees in fiscal year 2001
from Medicare+Choice organizations pursuant to section
1857(e)(2) of the Social Security Act and from eligible
organizations with risk-sharing contracts under section 1876 of
that Act pursuant to section 1876(k)(4)(D) of that Act.
health maintenance organization loan and loan guarantee fund
For carrying out subsections (d) and (e) of section 1308 of
the Public Health Service Act, any amounts received by the
Secretary in connection with loans and loan guarantees under
title XIII of the Public Health Service Act, to be available
without fiscal year limitation for the payment of outstanding
obligations. During fiscal year 2001, no commitments for direct
loans or loan guarantees shall be made.
Administration for Children and Families
payments to states for child support enforcement and family support
programs
For making payments to States or other non-Federal entities
under titles I, IV-D, X, XI, XIV, and XVI of the Social
Security Act and the Act of July 5, 1960 (24 U.S.C. ch. 9),
$2,441,800,000, to remain available until expended; and for
such purposes for the first quarter of fiscal year 2002,
$1,000,000,000, to remain available until expended.
For making payments to each State for carrying out the
program of Aid to Families with Dependent Children under title
IV-A of the Social Security Act before the effective date of
the program of Temporary Assistance to Needy Families (TANF)
with respect to such State, such sums as may be necessary:
Provided, That the sum of the amounts available to a State with
respect to expenditures under such title IV-A in fiscal year
1997 under this appropriation and under such title IV-A as
amended by the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 shall not exceed the limitations
under section 116(b) of such Act.
For making, after May 31 of the current fiscal year,
payments to States or other non-Federal entities under titles
I, IV-D, X, XI, XIV, and XVI of the Social Security Act and the
Act of July 5, 1960 (24 U.S.C. ch. 9), for the last 3 months of
the current year for unanticipated costs, incurred for the
current fiscal year, such sums as may be necessary.
low income home energy assistance
For making payments under title XXVI of the Omnibus Budget
Reconciliation Act of 1981, in addition to amounts already
appropriated for fiscal year 2001, $300,000,000.
For making payments under title XXVI of the Omnibus
Reconciliation Act of 1981, $300,000,000: Provided, That these
funds are hereby designated by the Congress to be emergency
requirements pursuant to section 251(b)(2)(A) of the Balanced
Budget and Emergency Deficit Control Act of 1985: Provided
further, That these funds shall be made available only after
submission to the Congress of a formal budget request by the
President that includes designation of the entire amount of the
request as an emergency requirement as defined in such Act.
refugee and entrant assistance
For making payments for refugee and entrant assistance
activities authorized by title IV of the Immigration and
Nationality Act and section 501 of the Refugee Education
Assistance Act of 1980 (Public Law 96-422), $423,109,000:
Provided, That funds appropriated pursuant to section 414(a) of
the Immigration and Nationality Act for fiscal year 2001 shall
be available for the costs of assistance provided and other
activities through September 30, 2003: Provided further, That
up to $5,000,000 is available to carry out the Trafficking
Victims Protection Act of 2000.
For carrying out section 5 of the Torture Victims Relief
Act of 1998 (Public Law 105-320), $10,000,000.
payments to states for the child care and development block grant
For carrying out sections 658A through 658R of the Omnibus
Budget Reconciliation Act of 1981 (The Child Care and
Development Block Grant Act of 1990), in addition to amounts
already appropriated for fiscal year 2001, $817,328,000, such
funds shall be used to supplement, not supplant state general
revenue funds for child care assistance for low-income
families: Provided, That of the funds appropriated for fiscal
year 2001, $19,120,000 shall be available for child care
resource and referral and school-aged child care activities, of
which $1,000,000 shall be for the Child Care Aware toll free
hotline: Provided further, That of the funds appropriated for
fiscal year 2001, in addition to the amounts required to be
reserved by the States under section 658G, $272,672,000 shall
be reserved by the States for activities authorized under
section 658G, of which $100,000,000 shall be for activities
that improve the quality of infant and toddler child care:
Provided further, That of the funds appropriated for fiscal
year 2001, $10,000,000 shall be for use by the Secretary for
child care research, demonstration, and evaluation activities.
social services block grant
For making grants to States pursuant to section 2002 of the
Social Security Act, $1,725,000,000: Provided, That
notwithstanding section 2003(c) of such Act, as amended, the
amount specified for allocation under such section for fiscal
year 2001 shall be $1,725,000,000: Provided further, That,
notwithstanding subparagraph (B) of section 404(d)(2) of such
Act, the applicable percent specified under such subparagraph
for a State to carry out State programs pursuant to title XX of
such Act shall be 10 percent.
children and families services programs
(including rescissions)
For carrying out, except as otherwise provided, the Runaway
and Homeless Youth Act, the Developmental Disabilities
Assistance and Bill of Rights Act, the Head Start Act, the
Child Abuse Prevention and Treatment Act, the Native American
Programs Act of 1974, title II of Public Law 95-266 (adoption
opportunities), the Adoption and Safe Families Act of 1997
(Public Law 105-89), the Abandoned Infants Assistance Act of
1988, the Early Learning Opportunities Act, part B(1) of title
IV and sections 413, 429A, 1110, and 1115 of the Social
Security Act, and sections 40155, 40211, and 40241 of Public
Law 103-322; for making payments under the Community Services
Block Grant Act, section 473A of the Social Security Act, and
title IV of Public Law 105-285, and for necessary
administrative expenses to carry out said Acts and titles I,
IV, X, XI, XIV, XVI, and XX of the Social Security Act, the Act
of July 5, 1960 (24 U.S.C. ch. 9), the Omnibus Budget
Reconciliation Act of 1981, title IV of the Immigration and
Nationality Act, section 501 of the Refugee Education
Assistance Act of 1980, section 5 of the Torture Victims Relief
Act of 1998 (Public Law 105-320), sections 40155, 40211, and
40241 of Public Law 103-322 and section 126 and titles IV and V
of Public Law 100-485, $7,956,345,000, of which $43,000,000, to
remain available until September 30, 2002, shall be for grants
to States for adoption incentive payments, as authorized by
section 473A of title IV of the Social Security Act (42 U.S.C.
670-679) and may be made for adoptions completed in fiscal
years 1999 and 2000; of which $682,876,000 shall be for making
payments under the Community Services Block Grant Act; and of
which $6,200,000,000 shall be for making payments under the
Head Start Act, of which $1,400,000,000 shall become available
October 1, 2001 and remain available through September 30,
2002: Provided, That to the extent Community Services Block
Grant funds are distributed as grant funds by a State to an
eligible entity as provided under the Act, and have not been
expended by such entity, they shall remain with such entity for
carryover into the next fiscal year for expenditure by such
entity consistent with program purposes: Provided further, That
the Secretary shall establish procedures regarding the
disposition of intangible property which permits grant funds,
or intangible assets acquired with funds authorized under
section 680 of the Community Services Block Grant Act, as
amended, to become the sole property of such grantees after a
period of not more than 12 years after the end of the grant for
purposes and uses consistent with the original grant.
Funds appropriated for fiscal year 2001 under section
429A(e), part B of title IV of the Social Security Act shall be
reduced by $6,000,000.
Funds appropriated for fiscal year 2001 under section
413(h)(1) of the Social Security Act shall be reduced by
$15,000,000.
promoting safe and stable families
For carrying out section 430 of the Social Security Act,
$305,000,000.
payments to states for foster care and adoption assistance
For making payments to States or other non-Federal entities
under title IV-E of the Social Security Act, $4,863,100,000.
For making payments to States or other non-Federal entities
under title IV-E of the Social Security Act, for the first
quarter of fiscal year 2002, $1,735,900,000.
Administration on Aging
aging services programs
For carrying out, to the extent not otherwise provided, the
Older Americans Act of 1965, as amended, and section 398 of the
Public Health Service Act, $1,103,135,000, of which $5,000,000
shall be available for activities regarding medication
management, screening, and education to prevent incorrect
medication and adverse drug reactions: Provided, That
notwithstanding section 308(b)(1) of the Older Americans Act of
1965, as amended, the amounts available to each State for
administration of the State plan under title III of such Act
shall be reduced not more than 5 percent below the amount that
was available to such State for such purpose for fiscal year
1995.
Office of the Secretary
general departmental management
For necessary expenses, not otherwise provided, for general
departmental management, including hire of six sedans, and for
carrying out titles III, XVII, and XX of the Public Health
Service Act, and the United States-Mexico Border Health
Commission Act, $285,224,000, together with $5,851,000, to be
transferred and expended as authorized by section 201(g)(1) of
the Social Security Act from the Hospital Insurance Trust Fund
and the Supplemental Medical Insurance Trust Fund: Provided
further, That of the funds made available under this heading
for carrying out title XX of the Public Health Service Act,
$10,377,000 shall be for activities specified under section
2003(b)(2), of which $10,157,000 shall be for prevention
service demonstration grants under section 510(b)(2) of title V
of the Social Security Act, as amended, without application of
the limitation of section 2010(c) of said title XX: Provided
further, That no funds shall be obligated for minority AIDS
prevention and treatment activities until the Department of
Health and Human Services submits an operating plan to the
House and Senate Committees on Appropriations.
office of inspector general
For expenses necessary for the Office of Inspector General
in carrying out the provisions of the Inspector General Act of
1978, as amended, $33,849,000: Provided, That of such amount,
necessary sums are available for providing protective services
to the Secretary and investigating non-payment of child support
cases for which non-payment is a Federal offense under 18
U.S.C. 228, each of which activities is hereby authorized in
this and subsequent fiscal years.
office for civil rights
For expenses necessary for the Office for Civil Rights,
$24,742,000, together with not to exceed $3,314,000, to be
transferred and expended as authorized by section 201(g)(1) of
the Social Security Act from the Hospital Insurance Trust Fund
and the Supplemental Medical Insurance Trust Fund.
policy research
For carrying out, to the extent not otherwise provided,
research studies under section 1110 of the Social Security Act,
$16,738,000.
retirement pay and medical benefits for commissioned officers
For retirement pay and medical benefits of Public Health
Service Commissioned Officers as authorized by law, for
payments under the Retired Serviceman's Family Protection Plan
and Survivor Benefit Plan, for medical care of dependents and
retired personnel under the Dependents' Medical Care Act (10
U.S.C. ch. 55), and for payments pursuant to section 229(b) of
the Social Security Act (42 U.S.C. 429(b)), such amounts as may
be required during the current fiscal year.
public health and social services emergency fund
For expenses necessary to support activities related to
countering potential biological, disease and chemical threats
to civilian populations, $241,231,000: Provided, That this
amount is distributed as follows: Centers for Disease Control
and Prevention, $181,131,000, of which $32,000,000 shall be for
the Health Alert Network and $18,040,000 shall be for the
continued study of the anthrax vaccine; and Office of Emergency
Preparedness, $60,100,000.
GENERAL PROVISIONS
Sec. 201. Funds appropriated in this title shall be
available for not to exceed $37,000 for official reception and
representation expenses when specifically approved by the
Secretary.
Sec. 202. The Secretary shall make available through
assignment not more than 60 employees of the Public Health
Service to assist in child survival activities and to work in
AIDS programs through and with funds provided by the Agency for
International Development, the United Nations International
Children's Emergency Fund or the World Health Organization.
Sec. 203. None of the funds appropriated under this Act may
be used to implement section 399L(b) of the Public Health
Service Act or section 1503 of the National Institutes of
Health Revitalization Act of 1993, Public Law 103-43.
Sec. 204. None of the funds appropriated in this Act for
the National Institutes of Health and the Substance Abuse and
Mental Health Services Administration shall be used to pay the
salary of an individual, through a grant or other extramural
mechanism, at a rate in excess of Executive Level I.
Sec. 205. None of the funds appropriated in this Act may be
expended pursuant to section 241 of the Public Health Service
Act, except for funds specifically provided for in this Act, or
for other taps and assessments made by any office located in
the Department of Health and Human Services, prior to the
Secretary's preparation and submission of a report to the
Committee on Appropriations of the Senate and of the House
detailing the planned uses of such funds.
(transfer of funds)
Sec. 206. Not to exceed 1 percent of any discretionary
funds (pursuant to the Balanced Budget and Emergency Deficit
Control Act of 1985, as amended) which are appropriated for the
current fiscal year for the Department of Health and Human
Services in this Act may be transferred between appropriations,
but no such appropriation shall be increased by more than 3
percent by any such transfer: Provided, That the Appropriations
Committees of both Houses of Congress are notified at least 15
days in advance of any transfer.
Sec. 207. The Director of the National Institutes of
Health, jointly with the Director of the Office of AIDS
Research, may transfer up to 3 percent among institutes,
centers, and divisions from the total amounts identified by
these two Directors as funding for research pertaining to the
human immunodeficiency virus: Provided, That the Congress is
promptly notified of the transfer.
Sec. 208. Of the amounts made available in this Act for the
National Institutes of Health, the amount for research related
to the human immunodeficiency virus, as jointly determined by
the Director of the National Institutes of Health and the
Director of the Office of AIDS Research, shall be made
available to the ``Office of AIDS Research'' account. The
Director of the Office of AIDS Research shall transfer from
such account amounts necessary to carry out section 2353(d)(3)
of the Public Health Service Act.
Sec. 209. None of the funds appropriated in this Act may be
made available to any entity under title X of the Public Health
Service Act unless the applicant for the award certifies to the
Secretary that it encourages family participation in the
decision of minors to seek family planning services and that it
provides counseling to minors on how to resist attempts to
coerce minors into engaging in sexual activities.
Sec. 210. None of the funds appropriated by this Act
(including funds appropriated to any trust fund) may be used to
carry out the Medicare+Choice program if the Secretary denies
participation in such program to an otherwise eligible entity
(including a Provider Sponsored Organization) because the
entity informs the Secretary that it will not provide, pay for,
provide coverage of, or provide referrals for abortions:
Provided, That the Secretary shall make appropriate prospective
adjustments to the capitation payment to such an entity (based
on an actuarially sound estimate of the expected costs of
providing the service to such entity's enrollees): Provided
further, That nothing in this section shall be construed to
change the Medicare program's coverage for such services and a
Medicare+Choice organization described in this section shall be
responsible for informing enrollees where to obtain information
about all Medicare covered services.
Sec. 211. Notwithstanding any other provision of law, no
provider of services under title X of the Public Health Service
Act shall be exempt from any State law requiring notification
or the reporting of child abuse, child molestation, sexual
abuse, rape, or incest.
Sec. 212. The Foreign Operations, Export Financing, and
Related Programs Appropriations Act, 1990 (Public Law 101-167)
is amended--
(1) in section 599D (8 U.S.C. 1157 note)--
(A) in subsection (b)(3), by striking
``1997, 1998, 1999, and 2000'' and inserting
``1997, 1998, 1999, 2000 and 2001''; and
(B) in subsection (e), by striking
``October 1, 2000'' each place it appears and
inserting ``October 1, 2001''; and
(2) in section 599E (8 U.S.C. 1255 note) in
subsection (b)(2), by striking ``September 30, 2000''
and inserting ``September 30, 2001''.
Sec. 213. None of the funds provided in this Act or in any
other Act making appropriations for fiscal year 2001 may be
used to administer or implement in Arizona or in the Kansas
City, Missouri or in the Kansas City, Kansas area the Medicare
Competitive Pricing Demonstration Project (operated by the
Secretary of Health and Human Services).
Sec. 214. (a) Except as provided by subsection (e) none of
the funds appropriated by this Act may be used to withhold
substance abuse funding from a State pursuant to section 1926
of the Public Health Service Act (42 U.S.C. 300x-26) if such
State certifies to the Secretary of Health and Human Services
by March 1, 2001 that the State will commit additional State
funds, in accordance with subsection (b), to ensure compliance
with State laws prohibiting the sale of tobacco products to
individuals under 18 years of age.
(b) The amount of funds to be committed by a State under
subsection (a) shall be equal to 1 percent of such State's
substance abuse block grant allocation for each percentage
point by which the State misses the retailer compliance rate
goal established by the Secretary of Health and Human Services
under section 1926 of such Act.
(c) The State is to maintain State expenditures in fiscal
year 2001 for tobacco prevention programs and for compliance
activities at a level that is not less than the level of such
expenditures maintained by the State for fiscal year 2000, and
adding to that level the additional funds for tobacco
compliance activities required under subsection (a). The State
is to submit a report to the Secretary on all fiscal year 2000
State expenditures and all fiscal year 2001 obligations for
tobacco prevention and compliance activities by program
activity by July 31, 2001.
(d) The Secretary shall exercise discretion in enforcing
the timing of the State obligation of the additional funds
required by the certification described in subsection (a) as
late as July 31, 2001.
(e) None of the funds appropriated by this Act may be used
to withhold substance abuse funding pursuant to section 1926
from a territory that receives less than $1,000,000.
Sec. 215. Section 448 of the Public Health Service Act (42
U.S.C. 285g) is amended by inserting ``gynecologic health,''
after ``with respect to''.
Sec. 216. None of the funds appropriated under this Act
shall be expended by the National Institutes of Health on a
contract for the care of the 288 chimpanzees acquired by the
National Institutes of Health from the Coulston Foundation,
unless the contractor is accredited by the Association for the
Assessment and Accreditation of Laboratory Animal Care
International or has a Public Health Services assurance, and
has not been charged multiple times with egregious violations
of the Animal Welfare Act: Provided, That the requirements of
section 481(A)(e)(1) shall not apply to funds awarded to
nonhuman primate research facilities of special interest to
NIH.
Sec. 217. No grants may be awarded under the first
paragraph under the heading ``Department of Health and Human
Services, Health Resources and Services Administration, Health
Resources and Services'' in chapter 4 of title II of the
Emergency Supplemental Act, 2000 (Public Law 106-246, division
B) until March 1, 2001.
Sec. 218. (a) The second sentence of section 5948(d) of
title 5, United States Code, is amended to read as follows:
``No agreement shall be entered into under this section later
than September 30, 2005, nor shall any agreement cover a period
of service extending beyond September 30, 2007.''.
(b) Section 3 of the Federal Physicians Comparability
Allowance Act of 1978 (5 U.S.C. 5948 note) is amended by
striking ``September 30, 2002'' and inserting ``September 30,
2007''.
Sec. 219. (a) Congress makes the following findings:
(1) Organ procurement organizations play an
important role in the effort to increase organ donation
in the United States.
(2) The current process for the certification and
recertification of organ procurement organizations
conducted by the Department of Health and Human
Services has created a level of uncertainty that is
interfering with the effectiveness of organ procurement
organizations in raising the level of organ donation.
(3) The General Accounting Office, the Institute of
Medicine, and the Harvard School of Public Health have
identified substantial limitations in the organ
procurement organization certification and
recertification process and have recommended changes in
that process.
(4) The limitations in the recertification process
include:
(A) An exclusive reliance on population-
based measures of performance that do not
account for the potential in the population for
organ donation and do not permit consideration
of other outcome and process standards that
would more accurately reflect the relative
capability and performance of each organ
procurement organization.
(B) A lack of due process to appeal to the
Secretary of Health and Human Services for
recertification on either substantive or
procedural grounds.
(5) The Secretary of Health and Human Services has
the authority under section 1138(b)(1)(A)(i) of the
Social Security Act (42 U.S.C. 1320b-8(b)(1)(A)(i)) to
extend the period for recertification of an organ
procurement organization from 2 to 4 years on the basis
of its past practices in order to avoid the
inappropriate disruption of the nation's organ system.
(6) The Secretary of Health and Human Services can
use the extended period described in paragraph (5) for
recertification of all organ procurement organizations
to--
(A) develop improved performance measures
that would reflect organ donor potential and
interim outcomes, and to test these measures to
ensure that they accurately measure performance
differences among the organ procurement
organizations; and
(B) improve the overall certification
process by incorporating process as well as
outcome performance measures, and developing
equitable processes for appeals.
(b) Section 371(b)(1) of the Public Health Service Act (42
U.S.C. 273(b)(1)) is amended--
(1) by redesignating subparagraphs (D) through (G)
as subparagraphs (E) through (H), respectively;
(2) by realigning the margin of subparagraph (F)
(as so redesignated) so as to align with subparagraph
(E) (as so redesignated); and
(3) by inserting after subparagraph (C) the
following:
``(D) notwithstanding any other provision of law,
has met the other requirements of this section and has
been certified or recertified by the Secretary within
the previous 4-year period as meeting the performance
standards to be a qualified organ procurement
organization through a process that either--
``(i) granted certification or
recertification within such 4-year period with
such certification or recertification in effect
as of January 1, 2000, and remaining in effect
through the earlier of--
``(I) January 1, 2002; or
``(II) the completion of
recertification under the requirements
of clause (ii); or
``(ii) is defined through regulations that
are promulgated by the Secretary by not later
than January 1, 2002, that--
``(I) require recertifications of
qualified organ procurement
organizations not more frequently than
once every 4 years;
``(II) rely on outcome and process
performance measures that are based on
empirical evidence, obtained through
reasonable efforts, of organ donor
potential and other related factors in
each service area of qualified organ
procurement organizations;
``(III) use multiple outcome
measures as part of the certification
process; and
``(IV) provide for a qualified
organ procurement organization to
appeal a decertification to the
Secretary on substantive and procedural
grounds;''.
Sec. 220. (a) In order for the Centers for Disease Control
and Prevention to carry out international HIV/AIDS and other
infectious disease, chronic and environmental disease, and
other health activities abroad during fiscal year 2001, the
Secretary of Health and Human Services is authorized to--
(1) utilize the authorities contained in subsection
2(c) of the State Department Basic Authorities Act of
1956, as amended, subject to the limitations set forth
in subsection (b), and
(2) enter into reimbursable agreements with the
Department of State using any funds appropriated to the
Department of Health and Human Services, for the
purposes for which the funds were appropriated in
accordance with authority granted to the Secretary of
Health and Human Services or under authority governing
the activities of the Department of State.
(b) In exercising the authority set forth in subsection
(a)(1), the Secretary of Health and Human Services--
(1) shall not award contracts for performance of an
inherently governmental function; and
(2) shall follow otherwise applicable Federal
procurement laws and regulations to the maximum extent
practicable.
Sec. 221. Notwithstanding any other provision of law, the
Director, National Institutes of Health, may enter into and
administer a long-term lease for facilities for the purpose of
providing laboratory, office and other space for biomedical and
behavioral research at the Bayview Campus in Baltimore,
Maryland: Provided, That the House and Senate Appropriations
Committees will be notified of the terms and conditions of the
lease upon its execution.
Sec. 222. Of the funds appropriated in this Act for the
National Institutes of Health, $5,800,000 shall be transferred
to the Office of the Secretary, General Departmental Management
to support the newly established Office for Human Research
Protections.
Sec. 223. Section 487E(a)(1) of the Public Health Service
Act is amended by striking ``as employees of the National
Institutes of Health''.
Sec. 224. Notwithstanding any other provision of law
relating to vacancies in offices for which appointments must be
made by the President, including any time limitation on serving
in an acting capacity, the Acting Director of the National
Institutes of Health as of January 12, 2000, may serve in that
position until a new Director of the National Institutes of
Health is confirmed by the Senate.
Sec. 225. The National Neuroscience Research Center to be
constructed on the National Institutes of Health Bethesda
campus is hereby named the John Edward Porter Neuroscience
Research Center.
This title may be cited as the ``Department of Health and
Human Services Appropriations Act, 2001''.
TITLE III--DEPARTMENT OF EDUCATION
education reform
For carrying out activities authorized by title IV of the
Goals 2000: Educate America Act as in effect prior to September
30, 2000, and sections 3122, 3132, 3136, and 3141, parts B, C,
and D of title III, and section 10105 and part I of title X of
the Elementary and Secondary Education Act of 1965,
$1,880,710,000, of which $38,000,000 shall be for the Goals
2000: Educate America Act, and of which $191,950,000 shall be
for section 3122: Provided, That up to one-half of 1 percent of
the amount available under section 3132 shall be set aside for
the outlying areas, to be distributed on the basis of their
relative need as determined by the Secretary in accordance with
the purposes of the program: Provided further, That if any
State educational agency does not apply for a grant under
section 3132, that State's allotment under section 3131 shall
be reserved by the Secretary for grants to local educational
agencies in that State that apply directly to the Secretary
according to the terms and conditions published by the
Secretary in the Federal Register: Provided further, That with
respect to all funds appropriated to carry out section 10901 et
seq. in this Act, the Secretary shall strongly encourage
applications for grants that are to be submitted jointly by a
local educational agency (or a consortium of local educational
agencies) and a community-based organization that has
experience in providing before- and after-school services and
all applications submitted to the Secretary shall contain
evidence that the project contains elements that are designed
to assist students in meeting or exceeding state and local
standards in core academic subjects, as appropriate to the
needs of participating children: Provided further, That
$125,000,000, which shall become available on July 1, 2001, and
remain available through September 30, 2002, shall be available
to support activities under section 10105 of part A of title X
of the Elementary and Secondary Education Act of 1965, of which
up to 6 percent shall become available October 1, 2000, and be
available for evaluation, technical assistance, school
networking, peer review of applications, and program outreach
activities: Provided further, That funds made available to
local educational agencies under this section shall be used
only for activities related to establishing smaller learning
communities in high schools: Provided further, That $46,328,000
of the funds available to carry out section 3136 of the
Elementary and Secondary Education Act of 1965, $8,768,000 of
the funds available to carry out part B of title III of that
Act and $20,614,000 of the funds available to carry out part I
of title X of that Act shall be available for the projects and
in the amounts specified in the statement of the managers on
the conference report accompanying this Act.
education for the disadvantaged
For carrying out title I of the Elementary and Secondary
Education Act of 1965, and section 418A of the Higher Education
Act of 1965, $9,532,621,000, of which $2,731,921,000 shall
become available on July 1, 2001, and shall remain available
through September 30, 2002, and of which $6,758,300,000 shall
become available on October 1, 2001 and shall remain available
through September 30, 2002, for academic year 2001-2002:
Provided, That $7,332,721,000 shall be available for basic
grants under section 1124: Provided further, That $225,000,000
of these funds shall be allocated among the States in the same
proportion as funds are allocated among the States under
section 1122, to carry out section 1116(c): Provided further,
That 100 percent of these funds shall be allocated by states to
local educational agencies for the purposes of carrying out
section 1116(c): Provided further, That all local educational
agencies receiving an allocation under the preceding proviso,
and all other local educational agencies that are within a
State that receives funds under part A of title I of the
Elementary and Secondary Education Act of 1965 (other than a
local educational agency within a State receiving a minimum
grant under section 1124(d) or 1124A(a)(1)(B) of such Act),
shall provide all students enrolled in a school identified
under section 1116(c) with the option to transfer to another
public school within the local educational agency, including a
public charter school, that has not been identified for school
improvement under section 1116(c), unless such option to
transfer is prohibited by State law, or local law, which
includes school board-approved local educational agency policy:
Provided further, That if the local educational agency
demonstrates to the satisfaction of the State educational
agency that the local educational agency lacks the capacity to
provide all students with the option to transfer to another
public school, and after giving notice to the parents of
children affected that it is not possible, consistent with
State and local law, to accommodate the transfer request of
every student, the local educational agency shall permit as
many students as possible (who shall be selected by the local
educational agency on an equitable basis) to transfer to a
public school that has not been identified for school
improvement under section 1116(c): Provided further, That up to
$3,500,000 of these funds shall be available to the Secretary
on October 1, 2000, to obtain updated local educational agency
level census poverty data from the Bureau of the Census:
Provided further, That $1,364,000,000 shall be available for
concentration grants under section 1124A: Provided further,
That grant awards under sections 1124 and 1124A of title I of
the Elementary and Secondary Education Act of 1965 shall be not
less than the greater of 100 percent of the amount each State
and local educational agency received under this authority for
fiscal year 2000 or the amount such State and local educational
agency would receive if $6,883,503,000 for Basic Grants and
$1,222,397,000 for Concentration Grants were allocated in
accordance with section 1122(c)(3) of title I: Provided
further, That notwithstanding any other provision of law, grant
awards under section 1124A of title I of the Elementary and
Secondary Education Act of 1965 shall be made to those local
educational agencies that received a Concentration Grant under
the Department of Education Appropriations Act, 2000, but are
not eligible to receive such a grant for fiscal year 2001:
Provided further, That the Secretary shall not take into
account the hold harmless provisions in this section in
determining State allocations under any other program
administered by the Secretary in any fiscal year: Provided
further, That $8,900,000 shall be available for evaluations
under section 1501 and not more than $8,500,000 shall be
reserved for section 1308, of which not more than $3,000,000
shall be reserved for section 1308(d): Provided further, That
$210,000,000 shall be available under section 1002(g)(2) to
demonstrate effective approaches to comprehensive school reform
to be allocated and expended in accordance with the
instructions relating to this activity in the statement of the
managers on the conference report accompanying Public Law 105-
78 and in the statement of the managers on the conference
report accompanying Public Law 105-277: Provided further, That
in carrying out this initiative, the Secretary and the States
shall support only approaches that show the most promise of
enabling children served by title I to meet challenging State
content standards and challenging State student performance
standards based on reliable research and effective practices,
and include an emphasis on basic academics and parental
involvement.
impact aid
For carrying out programs of financial assistance to
federally affected schools authorized by title VIII of the
Elementary and Secondary Education Act of 1965, $993,302,000,
of which $882,000,000 shall be for basic support payments under
section 8003(b), $50,000,000 shall be for payments for children
with disabilities under section 8003(d), $12,802,000 shall be
for construction under section 8007, $40,500,000 shall be for
Federal property payments under section 8002, and $8,000,000,
to remain available until expended, shall be for facilities
maintenance under section 8008: Provided, That $6,802,000 of
the funds for section 8007 shall be available for the local
educational agencies and in the amounts specified in the
statement of the managers on the conference report accompanying
this Act: Provided further, That from the amount appropriated
for section 8002, the Secretary shall treat as timely filed,
and shall process for payment, an application for a fiscal year
1999 payment from Academy School District 20, Colorado, under
that section if the Secretary has received that application not
later than 30 days after the enactment of this Act: Provided
further, That the Secretary of Education shall consider the
local educational agency serving the Kadoka School District,
35-1, in South Dakota, eligible for payments under section 8002
for fiscal year 2001 and each succeeding fiscal year, with
respect to land in Washabaugh and Jackson Counties, South
Dakota, that is owned by the Department of Defense and used as
a bombing range: Provided further, That from the amount
appropriated for section 8002, the Secretary shall first
increase the payment of any local educational agency that was
denied funding or had its payment reduced under that section
for fiscal year 1998 due to section 8002(b)(1)(C) to the amount
that would have been made without the limitation of that
section: Provided further, That from the amount appropriated
for section 8002, $500,000 shall be for subsection 8002(j).
school improvement programs
For carrying out school improvement activities authorized
by titles II, IV, V-A and B, VI, IX, X, and XIII of the
Elementary and Secondary Education Act of 1965 (``ESEA''); the
McKinney-Vento Homeless Assistance Act; and the Civil Rights
Act of 1964 and part B of title VIII of the Higher Education
Amendments of 1998; $4,872,084,000, of which $2,403,750,000
shall become available on July 1, 2001, and remain available
through September 30, 2002, and of which $1,765,000,000 shall
become available on October 1, 2001 and shall remain available
through September 30, 2002 for academic year 2001-2002:
Provided, That $485,000,000 shall be available for Eisenhower
professional development State grants under part B of title II
of the Elementary and Secondary Education Act of 1965: Provided
further, That each local educational agency shall use funds in
excess of the allocation it received under such part for the
preceding fiscal year to improve teacher quality by reducing
the percentage of teachers who do not have State certification
or are certified through emergency or provisional means; are
teaching out of field in some or all of the subject areas and
grade levels in which they teach; or who lack sufficient
content knowledge to teach effectively in the areas they teach
to obtain that knowledge: Provided further, That the local
educational agency may also use such excess funds for:
activities authorized under section 2210 of the Elementary and
Secondary Education Act of 1965; mentoring programs for new
teachers; providing opportunities for teachers to attend multi-
week institutes, such as those provided in the summer months,
that provide intensive professional development in partnership
with local educational agencies; and carrying out initiatives
to promote the retention of highly qualified teachers who have
a record of success in helping low-achieving students improve
their academic success: Provided further, That each State
educational agency may use such excess funds to carry out
activities under section 2207 of the Elementary and Secondary
Education Act of 1965: Provided further, That each State agency
for higher education may use such excess funds to carry out
activities under section 2211 of the Elementary and Secondary
Education Act of 1965: Provided further, That both State
educational agencies and State agencies for higher education
may also use such excess funds for multi-week institutes, such
as those provided in the summer months, that provide intensive
professional development in partnership with local educational
agencies; and grants to partnerships of such entities as local
educational agencies, institutions of higher education, and
private business, to recruit, and prepare, and provide
professional development to, and help retain, school principals
and superintendents, especially for such individuals who serve,
or are preparing to serve, in high-poverty, low-performing
schools and local educational agencies: Provided further, That
such activities may be undertaken in consortium with other
States: Provided further, That of the funds appropriated for
part B of title II of the Elementary and Secondary Education
Act of 1965, $45,000,000 shall be available to States and
allocated in accordance with section 2202(b) of that Act
(except that the requirements of section 2203 shall not apply):
Provided further, That notwithstanding any other provision of
law, each State shall use the amount made available under the
preceding proviso to support efforts to meet the requirements
for State eligibility for the Ed-Flex Partnership Act of 1999
or the requirements under section 1111 of title I of the
Elementary and Secondary Education Act of 1965: Provided
further, That $44,000,000 shall be available for national
activities under section 2102 of the Elementary and Secondary
Education Act of 1965: Provided further, That of the amount
available in the preceding proviso, $3,000,000 shall be made
available to the Secretary for the Troops-to-Teachers Program
for transfer to the Defense Activity for Non-Traditional
Education Support of the Department of Defense: Provided
further, That the funds transferred under the preceding proviso
shall be used by the Secretary of Defense to administer the
Troops-to-Teachers Program, including the selection of
participants in the Program under the Troops-to-Teachers
Program Act of 1999 (title XVII of Public Law 106-65; 20 U.S.C.
9301 et seq.): Provided further, That for purposes of sections
1702(b) and (c) of the Troops-to-Teachers Program Act of 1999,
the Secretary of Education shall be the administering Secretary
and may, at the Secretary's discretion, carry out the
activities under section 1702(c) of that Act and retain a
portion of the funds made available for the Troops-to-Teachers
Program to carry out section 1702(b) and (c) of that Act:
Provided further, That of the amount made available under this
heading for national activities under section 2102 of the
Elementary and Secondary Education Act of 1965, the Secretary
is authorized to use a portion of such funds to carry out
activities to improve the knowledge and skills of early
childhood educators and caregivers who work in urban or rural
communities with high concentrations of young children living
in poverty: Provided further, That of the amount appropriated,
$3,208,000,000 shall be for title VI of the Elementary and
Secondary Education Act of 1965 and to carry out activities
under part B of the Individuals with Disabilities Education Act
(20 U.S.C. 1411 et seq.): Provided further, That of the amount
made available for title VI, $1,623,000,000 shall be available,
notwithstanding any other provision of law, in accordance with
section 306 of this Act in order to reduce class size,
particularly in the early grades, using highly qualified
teachers to improve educational achievement for regular and
special needs children: Provided further, That of the amount
made available for title VI, $1,200,000,000 shall be available,
notwithstanding any other provision of law, for grants for
school repair and renovation, activities under part B of the
Individuals with Disabilities Education Act (20 U.S.C. 1411 et
seq.), and technology activities, in accordance with section
321 of this Act: Provided further, That funds made available
under this heading to carry out section 6301(b) of the
Elementary and Secondary Education Act of 1965 shall be
available for education reform projects that provide same
gender schools and classrooms, consistent with applicable law:
Provided further, That of the amount made available to carry
out activities authorized under part C of title IX of the
Elementary and Secondary Education Act of 1965, $1,000,000
shall be for the Alaska Humanities Forum for operation of the
Rose student exchange program and $1,000,000 shall be for the
Alaska Native Heritage Center to support its program of
cultural education activities: Provided further, That of the
amount made available for subpart 2 of part A of title IV of
the Elementary and Secondary Education Act of 1965,
$10,000,000, to remain available until expended, shall be for
Project School Emergency Response to Violence to provide
education-related services to local educational agencies in
which the learning environment has been disrupted due to a
violent or traumatic crisis.
reading excellence
For necessary expenses to carry out the Reading Excellence
Act, $91,000,000, which shall become available on July 1, 2001
and shall remain available through September 30, 2002 and
$195,000,000 which shall become available on October 1, 2001
and remain available through September 30, 2002.
indian education
For expenses necessary to carry out, to the extent not
otherwise provided, title IX, part A of the Elementary and
Secondary Education Act of 1965, as amended, $115,500,000.
bilingual and immigrant education
For carrying out, to the extent not otherwise provided,
bilingual, foreign language and immigrant education activities
authorized by parts A and C and section 7203 of title VII of
the Elementary and Secondary Education Act of 1965,
$460,000,000: Provided, That State educational agencies may use
all, or any part of, their part C allocation for competitive
grants to local educational agencies.
special education
For carrying out the Individuals with Disabilities
Education Act, $7,439,948,000, of which $2,090,452,000 shall
become available for obligation on July 1, 2001, and shall
remain available through September 30, 2002, and of which
$5,072,000,000 shall become available on October 1, 2001 and
shall remain available through September 30, 2002, for academic
year 2001-2002: Provided, That $9,500,000 shall be for
Recording for the Blind and Dyslexic to support the
development, production, and circulation of recorded
educational materials: Provided further, That $1,500,000 shall
be for the recipient of funds provided by Public Law 105-78
under section 687(b)(2)(G) of the Act to provide information on
diagnosis, intervention, and teaching strategies for children
with disabilities: Provided further, That $7,353,000 of the
funds for section 672 of the Act shall be available for the
projects and in the amounts specified in the statement of the
managers on the conference report accompanying this Act.
rehabilitation services and disability research
For carrying out, to the extent not otherwise provided, the
Rehabilitation Act of 1973, the Assistive Technology Act of
1998, and the Helen Keller National Center Act, $2,805,339,000:
Provided, That the funds provided for title I of the Assistive
Technology Act of 1998 (``the AT Act'') shall be allocated
notwithstanding section 105(b)(1) of the AT Act: Provided
further, That each State shall be provided $50,000 for
activities under section 102 of the AT Act: Provided further,
That $15,000,000 shall be used to support grants for up to
three years to States under title III of the AT Act, of which
the Federal share shall not exceed 75 percent in the first
year, 50 percent in the second year, and 25 percent in the
third year, and that the requirements in section 301(c)(2) and
section 302 of that Act shall not apply to such grants:
Provided further, That $4,600,000 of the funds for section 303
of the Rehabilitation Act of 1973 shall be available for the
projects and in the amounts specified in the statement of the
managers on the conference report accompanying this Act:
Provided further, That $400,000 of the funds for title II of
the Rehabilitation Act of 1973 shall be for the Cerebral Palsy
Research Foundation in Wichita, Kansas for the establishment of
a Rehabilitation Research and Training Center to study and
recommend incentives for employers to hire persons with
significant disabilities.
Special Institutions for Persons With Disabilities
american printing house for the blind
For carrying out the Act of March 3, 1879, as amended (20
U.S.C. 101 et seq.), $12,000,000.
national technical institute for the deaf
For the National Technical Institute for the Deaf under
titles I and II of the Education of the Deaf Act of 1986 (20
U.S.C. 4301 et seq.), $53,376,000, of which $5,376,000 shall be
for construction and shall remain available until expended:
Provided, That from the total amount available, the Institute
may at its discretion use funds for the endowment program as
authorized under section 207.
gallaudet university
For the Kendall Demonstration Elementary School, the Model
Secondary School for the Deaf, and the partial support of
Gallaudet University under titles I and II of the Education of
the Deaf Act of 1986 (20 U.S.C. 4301 et seq.), $89,400,000:
Provided, That from the total amount available, the University
may at its discretion use funds for the endowment program as
authorized under section 207.
vocational and adult education
For carrying out, to the extent not otherwise provided, the
Carl D. Perkins Vocational and Technical Education Act, the
Adult Education and Family Literacy Act, and title VIII-D of
the Higher Education Act of 1965, as amended, and Public Law
102-73, $1,825,600,000, of which $1,000,000 shall remain
available until expended, and of which $1,028,000,000 shall
become available on July 1, 2001 and shall remain available
through September 30, 2002 and of which $791,000,000 shall
become available on October 1, 2001 and shall remain available
through September 30, 2002: Provided, That of the amounts made
available for the Carl D. Perkins Vocational and Technical
Education Act, $5,600,000 shall be for tribally controlled
postsecondary vocational and technical institutions under
section 117: Provided further, That $9,000,000 shall be for
carrying out section 118 of such Act: Provided further, That of
the amounts made available for the Carl D. Perkins Vocational
and Technical Education Act, $5,000,000 shall be for
demonstration activities authorized by section 207: Provided
further, That of the amount provided for Adult Education State
Grants, $70,000,000 shall be made available for integrated
English literacy and civics education services to immigrants
and other limited English proficient populations: Provided
further, That of the amount reserved for integrated English
literacy and civics education, notwithstanding section 211 of
the Adult Education and Family Literacy Act, 65 percent shall
be allocated to States based on a State's absolute need as
determined by calculating each State's share of a 10-year
average of the Immigration and Naturalization Service data for
immigrants admitted for legal permanent residence for the 10
most recent years, and 35 percent allocated to States that
experienced growth as measured by the average of the 3 most
recent years for which Immigration and Naturalization Service
data for immigrants admitted for legal permanent residence are
available, except that no State shall be allocated an amount
less than $60,000: Provided further, That of the amounts made
available for the Adult Education and Family Literacy Act,
$14,000,000 shall be for national leadership activities under
section 243 and $6,500,000 shall be for the National Institute
for Literacy under section 242: Provided further, That
$22,000,000 shall be for Youth Offender Grants, of which
$5,000,000 shall be used in accordance with section 601 of
Public Law 102-73 as that section was in effect prior to the
enactment of Public Law 105-220.
student financial assistance
For carrying out subparts 1, 3 and 4 of part A, section
428K, part C and part E of title IV of the Higher Education Act
of 1965, as amended, $10,674,000,000, which shall remain
available through September 30, 2002.
The maximum Pell Grant for which a student shall be
eligible during award year 2001-2002 shall be $3,750: Provided,
That notwithstanding section 401(g) of the Act, if the
Secretary determines, prior to publication of the payment
schedule for such award year, that the amount included within
this appropriation for Pell Grant awards in such award year,
and any funds available from the fiscal year 2000 appropriation
for Pell Grant awards, are insufficient to satisfy fully all
such awards for which students are eligible, as calculated
under section 401(b) of the Act, the amount paid for each such
award shall be reduced by either a fixed or variable
percentage, or by a fixed dollar amount, as determined in
accordance with a schedule of reductions established by the
Secretary for this purpose.
federal family education loan program account
For Federal administrative expenses to carry out guaranteed
student loans authorized by title IV, part B, of the Higher
Education Act of 1965, as amended, $48,000,000.
higher education
For carrying out, to the extent not otherwise provided,
section 121 and titles II, III, IV, V, VI, and VII of the
Higher Education Act of 1965, as amended, section 1543 of the
Higher Education Amendments of 1992 and title VIII of the
Higher Education Amendments of 1998, and the Mutual Educational
and Cultural Exchange Act of 1961, $1,911,710,000, of which
$10,000,000 for interest subsidies authorized by section 121 of
the Higher Education Act of 1965, shall remain available until
expended: Provided, That $10,000,000, to remain available
through September 30, 2002, shall be available to fund
fellowships for academic year 2002-2003 under part A, subpart 1
of title VII of said Act, under the terms and conditions of
part A, subpart 1: Provided further, That $3,000,000 is for
data collection and evaluation activities for programs under
the Higher Education Act of 1965, including such activities
needed to comply with the Government Performance and Results
Act of 1993: Provided further, That $15,000,000 shall be
available for tribally controlled colleges and universities
under section 316 of the Higher Education Act of 1965, of which
$5,000,000 shall be used for construction and renovation:
Provided further, That $250,000 shall be for the Web-Based
Education Commission to continue activities authorized under
part J of title VIII of the Higher Education Amendments of
1998: Provided further, That $115,487,000 of the funds for part
B of title VII of the Higher Education Act of 1965 shall be
available for the projects and in the amounts specified in the
statement of the managers on the conference report accompanying
this Act.
howard university
For partial support of Howard University (20 U.S.C. 121 et
seq.), $232,474,000, of which not less than $3,600,000 shall be
for a matching endowment grant pursuant to the Howard
University Endowment Act (Public Law 98-480) and shall remain
available until expended.
college housing and academic facilities loans program
For Federal administrative expenses authorized under
section 121 of the Higher Education Act of 1965, $762,000 to
carry out activities related to existing facility loans entered
into under the Higher Education Act of 1965.
historically black college and university capital financing program
account
The total amount of bonds insured pursuant to section 344
of title III, part D of the Higher Education Act of 1965 shall
not exceed $357,000,000, and the cost, as defined in section
502 of the Congressional Budget Act of 1974, of such bonds
shall not exceed zero.
For administrative expenses to carry out the Historically
Black College and University Capital Financing Program entered
into pursuant to title III, part D of the Higher Education Act
of 1965, as amended, $208,000.
education research, statistics, and improvement
For carrying out activities authorized by the Educational
Research, Development, Dissemination, and Improvement Act of
1994, including part E; the National Education Statistics Act
of 1994, including sections 411 and 412; section 2102 of title
II, parts A, B, K and L and sections 10102 and 10601 of title
X, and part C of title XIII of the Elementary and Secondary
Education Act of 1965, as amended, and title VI of Public Law
103-227, $732,721,000: Provided, That of the funds appropriated
for part A of title X of the Elementary and Secondary Education
Act of 1965, as amended, $5,000,000 shall be made available for
a high school reform program of grants to State educational
agencies to improve academic performance and provide technical
skills training: Provided further, That of the funds
appropriated for part A of title X of the Elementary and
Secondary Education Act of 1965, as amended, $5,000,000 shall
be made available to carry out part L of title X of the Act:
Provided further, That of the amount available for part A of
title X of the Elementary and Secondary Education Act of 1965,
as amended, $5,000,000 shall be available for grants to State
and local educational agencies, in collaboration with other
agencies and organizations, for school dropout prevention
programs designed to address the needs of populations or
communities with the highest dropout rates: Provided further,
That of the amount made available for part A of title X of the
Elementary and Secondary Education Act of 1965, as amended,
$50,000,000 shall be made available to enable the Secretary of
Education to award grants to develop, implement, and strengthen
programs to teach American history (not social studies) as a
separate subject within school curricula: Provided further,
That $53,000,000 of the amount available for the national
education research institutes shall be allocated
notwithstanding section 912(m)(1)(B-F) and subparagraphs (B)
and (C) of section 931(c)(2) of Public Law 103-227 and
$20,000,000 of that $53,000,000 shall be made available for the
Interagency Education Research Initiative: Provided further,
That of the funds appropriated for part A of title X of the
Elementary and Secondary Education Act, as amended, $50,000,000
shall be available to demonstrate effective approaches to
comprehensive school reform, to be allocated and expended in
accordance with the instructions relating to this activity in
the statement of managers on the conference report accompanying
Public Law 105-78 and in the statement of the managers on the
conference report accompanying Public Law 105-277: Provided
further, That the funds made available for comprehensive school
reform shall become available on July 1, 2001, and remain
available through September 30, 2002, and in carrying out this
initiative, the Secretary and the States shall support only
approaches that show the most promise of enabling children to
meet challenging State content standards and challenging State
student performance standards based on reliable research and
effective practices, and include an emphasis on basic academics
and parental involvement: Provided further, That $139,624,000
of the funds for section 10101 of the Elementary and Secondary
Education Act of 1965 shall be available for the projects and
in the amounts specified in the statement of the managers on
the conference report accompanying this Act: Provided further,
That of the funds appropriated under section 10601 of title X
of the Elementary and Secondary Education Act of 1965, as
amended, $2,000,000 shall be used to conduct a violence
prevention demonstration program: Provided further, That of the
funds available for section 10601 of title X of the Elementary
and Secondary Education Act of 1965, as amended, $150,000 shall
be awarded to the Center for Educational Technologies to
complete production and distribution of an effective CD-ROM
product that would complement the ``We the People: The Citizen
and the Constitution'' curriculum: Provided further, That, of
the funds for title VI of Public Law 103-227 and
notwithstanding the provisions of section 601(c)(1)(C) of that
Act, $1,200,000 shall be available to the Center for Civic
Education to conduct a civic education program with Northern
Ireland and the Republic of Ireland and, consistent with the
civics and Government activities authorized in section
601(c)(3) of Public Law 103-227, to provide civic education
assistance to democracies in developing countries. The term
``developing countries'' shall have the same meaning as the
term ``developing country'' in the Education for the Deaf Act.
Departmental Management
program administration
For carrying out, to the extent not otherwise provided, the
Department of Education Organization Act, including rental of
conference rooms in the District of Columbia and hire of two
passenger motor vehicles, $413,184,000.
office for civil rights
For expenses necessary for the Office for Civil Rights, as
authorized by section 203 of the Department of Education
Organization Act, $76,000,000.
office of the inspector general
For expenses necessary for the Office of the Inspector
General, as authorized by section 212 of the Department of
Education Organization Act, $36,500,000.
GENERAL PROVISIONS
Sec. 301. No funds appropriated in this Act may be used for
the transportation of students or teachers (or for the purchase
of equipment for such transportation) in order to overcome
racial imbalance in any school or school system, or for the
transportation of students or teachers (or for the purchase of
equipment for such transportation) in order to carry out a plan
of racial desegregation of any school or school system.
Sec. 302. None of the funds contained in this Act shall be
used to require, directly or indirectly, the transportation of
any student to a school other than the school which is nearest
the student's home, except for a student requiring special
education, to the school offering such special education, in
order to comply with title VI of the Civil Rights Act of 1964.
For the purpose of this section an indirect requirement of
transportation of students includes the transportation of
students to carry out a plan involving the reorganization of
the grade structure of schools, the pairing of schools, or the
clustering of schools, or any combination of grade
restructuring, pairing or clustering. The prohibition described
in this section does not include the establishment of magnet
schools.
Sec. 303. No funds appropriated under this Act may be used
to prevent the implementation of programs of voluntary prayer
and meditation in the public schools.
(transfer of funds)
Sec. 304. Not to exceed 1 percent of any discretionary
funds (pursuant to the Balanced Budget and Emergency Deficit
Control Act of 1985, as amended) which are appropriated for the
Department of Education in this Act may be transferred between
appropriations, but no such appropriation shall be increased by
more than 3 percent by any such transfer: Provided, That the
Appropriations Committees of both Houses of Congress are
notified at least 15 days in advance of any transfer.
Sec. 305. The Comptroller General of the United States
shall evaluate the extent to which funds made available under
part A of title I of the Elementary and Secondary Education Act
of 1965 are allocated to schools and local educational agencies
with the greatest concentrations of school-age children from
low-income families, the extent to which allocations of such
funds adjust to shifts in concentrations of pupils from low-
income families in different regions, States, and substate
areas, the extent to which the allocation of such funds
encourages the targeting of State funds to areas with higher
concentrations of children from low-income families, and the
implications of current distribution methods for such funds,
shall make formula and other policy recommendations to improve
the targeting of such funds to more effectively serve low-
income children in both rural and urban areas, and shall
prepare interim and final reports based on the results of the
study, to be submitted to Congress not later than February 1,
2001, and April 1, 2001.
Sec. 306. (a) From the amount appropriated for title VI of
the Elementary and Secondary Education Act of 1965 in
accordance with this section, the Secretary of Education--
(1) shall make available a total of $6,000,000 to
the Secretary of the Interior (on behalf of the Bureau
of Indian Affairs) and the outlying areas for
activities under this section; and
(2) shall allocate the remainder by providing each
State the same percentage of that remainder as it
received of the funds allocated to States under section
307(a)(2) of the Department of Education Appropriations
Act, 1999.
(b)(1) Each State that receives funds under this section
shall distribute 100 percent of such funds to local educational
agencies, of which--
(A) 80 percent of such amount shall be allocated to
such local educational agencies in proportion to the
number of children, aged 5 to 17, who reside in the
school district served by such local educational agency
from families with incomes below the poverty line (as
defined by the Office of Management and Budget and
revised annually in accordance with section 673(2) of
the Community Services Block Grant Act (42 U.S.C.
9902(2))) applicable to a family of the size involved
for the most recent fiscal year for which satisfactory
data are available compared to the number of such
individuals who reside in the school districts served
by all the local educational agencies in the State for
that fiscal year; and
(B) 20 percent of such amount shall be allocated to
such local educational agencies in accordance with the
relative enrollments of children, aged 5 to 17, in
public and private nonprofit elementary and secondary
schools within the boundaries of such agencies.
(2) Notwithstanding paragraph (1), if the award to a local
educational agency under this section is less than the starting
salary for a new fully qualified teacher in that agency, who is
certified within the State (which may include certification
through State or local alternative routes), has a baccalaureate
degree, and demonstrates the general knowledge, teaching
skills, and subject matter knowledge required to teach in his
or her content areas, that agency may use funds under this
section to (A) help pay the salary of a full- or part-time
teacher hired to reduce class size, which may be in combination
with other Federal, State, or local funds; or (B) pay for
activities described in subsection (c)(2)(A)(iii) which may be
related to teaching in smaller classes.
(c)(1) The basic purpose and intent of this section is to
reduce class size with fully qualified teachers. Each local
educational agency that receives funds under this section shall
use such funds to carry out effective approaches to reducing
class size with fully qualified teachers who are certified
within the State, including teachers certified through State or
local alternative routes, and who demonstrate competency in the
areas in which they teach, to improve educational achievement
for both regular and special needs children, with particular
consideration given to reducing class size in the early
elementary grades for which some research has shown class size
reduction is most effective.
(2)(A) Each such local educational agency may use funds
under this section for--
(i) recruiting (including through the use of
signing bonuses, and other financial incentives),
hiring, and training fully qualified regular and
special education teachers (which may include hiring
special education teachers to team-teach with regular
teachers in classrooms that contain both children with
disabilities and non-disabled children) and teachers of
special-needs children who are certified within the
State, including teachers certified through State or
local alternative routes, have a baccalaureate degree
and demonstrate the general knowledge, teaching skills,
and subject matter knowledge required to teach in their
content areas;
(ii) testing new teachers for academic content
knowledge and to meet State certification requirements
that are consistent with title II of the Higher
Education Act of 1965; and
(iii) providing professional development (which may
include such activities as those described in section
2210 of the Elementary and Secondary Education Act of
1965, opportunities for teachers to attend multi-week
institutes, such as those made available during the
summer months that provide intensive professional
development in partnership with local educational
agencies and initiatives that promote retention and
mentoring), to teachers, including special education
teachers and teachers of special-needs children, in
order to meet the goal of ensuring that all
instructional staff have the subject matter knowledge,
teaching knowledge, and teaching skills necessary to
teach effectively in the content area or areas in which
they provide instruction, consistent with title II of
the Higher Education Act of 1965.
(B)(i) Except as provided under clause (ii), a local
educational agency may use not more than a total of 25 percent
of the award received under this section for activities
described in clauses (ii) and (iii) of subparagraph (A).
(ii) A local educational agency in which 10 percent
or more of teachers in elementary schools, as defined
by section 14101(14) of the Elementary and Secondary
Education Act of 1965, have not met applicable State
and local certification requirements (including
certification through State or local alternative
routes), or if such requirements have been waived, may
use more than 25 percent of the funds it receives under
this section for activities described in subparagraph
(A)(iii) to help teachers who are not certified by the
State become certified, including through State or
local alternative routes, or to help teachers affected
by class size reduction who lack sufficient content
knowledge to teach effectively in the areas they teach
to obtain that knowledge, if the local educational
agency notifies the State educational agency of the
percentage of the funds that it will use for the
purpose described in this clause.
(C) A local educational agency that has already reduced
class size in the early grades to 18 or less children (or has
already reduced class size to a State or local class size
reduction goal that was in effect on the day before the
enactment of the Department of Education Appropriations Act,
2000, if that State or local educational agency goal is 20 or
fewer children) may use funds received under this section--
(i) to make further class size reductions in grades
kindergarten through 3;
(ii) to reduce class size in other grades; or
(iii) to carry out activities to improve teacher
quality including professional development.
(D) If a local educational agency has already reduced class
size in the early grades to 18 or fewer children and intends to
use funds provided under this section to carry out professional
development activities, including activities to improve teacher
quality, then the State shall make the award under subsection
(b) to the local educational agency.
(3) Each such agency shall use funds under this section
only to supplement, and not to supplant, State and local funds
that, in the absence of such funds, would otherwise be spent
for activities under this section.
(4) No funds made available under this section may be used
to increase the salaries or provide benefits, other than
participation in professional development and enrichment
programs, to teachers who are not hired under this section.
Funds under this section may be used to pay the salary of
teachers hired under section 307 of the Department of Education
Appropriations Act, 1999, or under section 310 of the
Department of Education Appropriations Act, 2000.
(d)(1) Each State receiving funds under this section shall
report on activities in the State under this section,
consistent with section 6202(a)(2) of the Elementary and
Secondary Education Act of 1965.
(2) Each State and local educational agency receiving funds
under this section shall publicly report to parents on its
progress in reducing class size, increasing the percentage of
classes in core academic areas taught by fully qualified
teachers who are certified within the State and demonstrate
competency in the content areas in which they teach, and on the
impact that hiring additional highly qualified teachers and
reducing class size, has had, if any, on increasing student
academic achievement.
(3) Each school receiving funds under this section shall
provide to parents, upon request, the professional
qualifications of their child's teacher.
(e) If a local educational agency uses funds made available
under this section for professional development activities, the
agency shall ensure for the equitable participation of private
nonprofit elementary and secondary schools in such activities.
Section 6402 of the Elementary and Secondary Education Act of
1965 shall not apply to other activities under this section.
(f) A local educational agency that receives funds under
this section may use not more than 3 percent of such funds for
local administrative costs.
(g) Each local educational agency that desires to receive
funds under this section shall include in the application
required under section 6303 of the Elementary and Secondary
Education Act of 1965 a description of the agency's program to
reduce class size by hiring additional highly qualified
teachers.
(h) No funds under this section may be used to pay the
salary of any teacher hired with funds under section 307 of the
Department of Education Appropriations Act, 1999, unless, by
the start of the 2001-2002 school year, the teacher is
certified within the State (which may include certification
through State or local alternative routes) and demonstrates
competency in the subject areas in which he or she teaches.
(i) Not later than 30 days after the date of the enactment
of this Act, the Secretary shall provide specific notification
to each local educational agency eligible to receive funds
under this part regarding the flexibility provided under
subsection (c)(2)(B)(ii) and the ability to use such funds to
carry out activities described in subsection (c)(2)(A)(iii).
Sec. 307. Section 412 of the National Education Statistics
Act of 1994 (Public Law 103-382) is amended--
(1) in subsection 412(c)(1), after ``period of''
and before ``years,'', by striking ``3'' and inserting
``4''; and
(2) after ``expiration of such term.'', by adding
the following new subsection:
``(4) Conforming provision.--Members of the Board
previously granted 3 year terms, whose terms are in
effect on the date of enactment of the Department of
Education Appropriations Act, 2001, shall have their
terms extended by one year.''.
Sec. 308. (a) Section 435(a)(2) of the Higher Education Act
of 1965 (20 U.S.C. 1085(a)(2)) is amended by adding at the end
thereof the following new subparagraph:
``(D) Notwithstanding the first sentence of subparagraph
(A), the Secretary shall restore the eligibility to participate
in a program under subpart 1 of part A, part B, or part D of an
institution that did not appeal its loss of eligibility within
30 days of receiving notification if the Secretary determines,
on a case-by-case basis, that the institution's failure to
appeal was substantially justified under the circumstances, and
that--
``(i) the institution made a timely request that
the appropriate guaranty agency correct errors in the
draft data used to calculate the institution's cohort
default rate;
``(ii) the guaranty agency did not correct the
erroneous data in a timely fashion; and
``(iii) the institution would have been eligible if
the erroneous data had been corrected by the guaranty
agency.''.
(b) The amendment made by subsection (a) of this section
shall be effective for cohort default rate calculations for
fiscal years 1997 and 1998.
Sec. 309. Section 439(r)(2) of the Higher Education Act of
1965 (20 U.S.C. 1087-2(r)(2)) is amended--
(1) in clause (A)(i), by striking ``auditors and
examiners'' and inserting ``and fix the compensation of
such auditors and examiners as may be necessary''; and
(2) by inserting at the end of subparagraph (E) the
following new subparagraph:
``(F) Compensation of auditors and
examiners.--
``(i) Rates of pay.--Rates of basic
pay for all auditors and examiners
appointed pursuant to subparagraph (A)
may be set and adjusted by the
Secretary of the Treasury without
regard to the provisions of chapter 51
or subchapter III of chapter 53 of
title 5, United States Code.
``(ii) Comparability.--
``(I) In general.--Subject
to section 5373 of title 5,
United States Code, the
Secretary of the Treasury may
provide additional compensation
and benefits to auditors and
examiners appointed pursuant to
subparagraph (A) if the same
type of compensation or
benefits are then being
provided by any agency referred
to in section 1206 of the
Financial Institutions Reform,
Recovery, and Enforcement Act
of 1989 (12 U.S.C. 1833b) or,
if not then being provided,
could be provided by such an
agency under applicable
provisions of law, rule, or
regulation.
``(II) Consultation.--In
setting and adjusting the total
amount of compensation and
benefits for auditors and
examiners appointed pursuant to
subparagraph (A), the Secretary
of the Treasury shall consult
with, and seek to maintain
comparability with, the
agencies referred to in section
1206 of the Financial
Institutions Reform, Recovery,
and Enforcement Act of 1989 (12
U.S.C. 1833b).''.
Sec. 310. Section 117(i) of the Carl D. Perkins Vocational
and Technical Education Act of 1998 (20 U.S.C. 2327(i)) is
amended by inserting ``such sums as may be necessary for''
before ``each of the 4 succeeding fiscal years.''.
Sec. 311. Section 432(m)(1) of the Higher Education Act of
1965 (20 U.S.C. 1082(m)(1)) is amended--
(1) by striking clause (iv) of subparagraph (D);
and
(2) by adding at the end the following new
subparagraph:
``(E) Perfection of security interests in
student loans.--
``(i) In general.--Notwithstanding
the provisions of any State law to the
contrary, including the Uniform
Commercial Code as in effect in any
State, a security interest in loans
made under this part, on behalf of any
eligible lender (as defined in section
435(d)) shall attach, be perfected, and
be assigned priority in the manner
provided by the applicable State's law
for perfection of security interests in
accounts, as such law may be amended
from time to time (including applicable
transition provisions). If any such
State's law provides for a statutory
lien to be created in such loans, such
statutory lien may be created by the
entity or entities governed by such
State law in accordance with the
applicable statutory provisions that
created such a statutory lien.
``(ii) Collateral description.--In
addition to any other method for
describing collateral in a legally
sufficient manner permitted under the
laws of the State, the description of
collateral in any financing statement
filed pursuant to this subparagraph
shall be deemed legally sufficient if
it lists such loans, or refers to
records (identifying such loans)
retained by the secured party or any
designee of the secured party
identified in such financing statement,
including the debtor or any loan
servicer.
``(iii) Sales.--Notwithstanding
clauses (i) and (ii) and any provisions
of any State law to the contrary, other
than any such State's law providing for
creation of a statutory lien, an
outright sale of loans made under this
part shall be effective and perfected
automatically upon attachment as
defined in the Uniform Commercial Code
of such State.''.
Sec. 312. Section 435(a)(5) of the Higher Education Act of
1965 (20 U.S.C. 1085(a)(5)) is amended--
(1) in subparagraph (A)(i), by striking ``July 1,
2002,'' and inserting ``July 1, 2004,'';
(2) in subparagraph (B), by striking ``1999, 2000,
and 2001'' and inserting ``1999 through 2003''.
Sec. 313. From the amounts made available for the ``Fund
for the Improvement of Education'' under the heading
``Education Research, Statistics, and Improvement'',
$10,000,000, to remain available until expended, shall be
available to the Secretary of Education to be transferred to
the Secretary of the Interior for an award to the National
Constitution Center for construction activities authorized
under Public Law 100-433.
Sec. 314. Section 4116(b)(4) of the Elementary and
Secondary Education Act of 1965 is amended by striking
subparagraph (D) and inserting in lieu thereof: ``(D) the
development and implementation of character education and
training programs that reflect the values of parents, teachers,
and local communities, and incorporate elements of good
character, including honesty, citizenship, courage, justice,
respect, personal responsibility, and trustworthiness; and''.
Sec. 315. The Secretary of Education shall review the
nursing program operated by Graceland University in Lamoni,
Iowa, and may exercise the waiver authority provided in section
102(a)(3)(B) of the Higher Education Act of 1965, without
regard to the provisions of 34 CFR 600.7(b)(3)(ii), if the
Secretary determines that such a waiver is appropriate.
Sec. 316. Section 415 of the Higher Education Act of 1965
is amended--
(1) in section 415A(a)(2), by striking ``section
415F'' and inserting ``section 415E'';
(2) in section 415E, by striking 415E(c) and
inserting in lieu thereof the following:
``(c) Authorized Activities.--Each State receiving a grant
under this section may use the grant funds for--
``(1) making awards that--
``(A) supplement grants received under
section 415C(b)(2) by eligible students who
demonstrate financial need; or
``(B) provide grants under section
415C(b)(2) to additional eligible students who
demonstrate financial need;
``(2) providing scholarships for eligible
students--
``(A) who demonstrate financial need; and
``(B) who--
``(i) desire to enter a program of
study leading to a career in--
``(I) information
technology;
``(II) mathematics,
computer science, or
engineering;
``(III) teaching; or
``(IV) another field
determined by the State to be
critical to the State's
workforce needs; or
``(ii) demonstrate merit or
academic achievement; and
``(3) making awards that--
``(A) supplement community service work-
study awards received under section 415C(b)(2)
by eligible students who demonstrate financial
need; or
``(B) provide community service work-study
awards under section 415C(b)(2) to additional
eligible students who demonstrate financial
need.''.
(3) in section 415E, adding at the end the
following new subsections:
``(f) Special Rule.--Notwithstanding subsection (d), for
purposes of determining a State's share of the cost of the
authorized activities described in subsection (c), the State
shall consider only those expenditures from non-Federal sources
that exceed its total expenditures for need-based grants,
scholarships, and work-study assistance for fiscal year 1999
(including any such assistance provided under this subpart).
``(g) Use of Funds for Administrative Costs Prohibited.--A
State receiving a grant under this section shall not use any of
the grant funds to pay administrative costs associated with any
of the authorized activities described in subsection (c).''.
Sec. 317. (a) Section 402D of the Higher Education Act of
1965 (20 U.S.C. 1070a-14) is amended--
(1) by redesignating subsection (c) as subsection
(d); and
(2) by inserting after subsection (b) the following
new subsection:
``(c) Special Rule.--
``(1) Use for student aid.--A recipient of a grant
that undertakes any of the permissible services
identified in subsection (b) may, in addition, use such
funds to provide grant aid to students. A grant
provided under this paragraph shall not exceed the
maximum appropriated Pell Grant or, be less than the
minimum appropriated Pell Grant, for the current
academic year. In making grants to students under this
subsection, an institution shall ensure that adequate
consultation takes place between the student support
service program office and the institution's financial
aid office.
``(2) Eligible students.--For purposes of receiving
grant aid under this subsection, eligible students
shall be current participants in the student support
services program offered by the institution and be--
``(A) students who are in their first 2
years of postsecondary education and who are
receiving Federal Pell Grants under subpart 1;
or
``(B) students who have completed their
first 2 years of postsecondary education and
who are receiving Federal Pell Grants under
subpart 1 if the institution demonstrates to
the satisfaction of the Secretary that--
``(i) these students are at high
risk of dropping out; and
``(ii) it will first meet the needs
of all its eligible first- and second-
year students for services under this
paragraph.
``(3) Determination of need.--A grant provided to a
student under paragraph (1) shall not be considered in
determining that student's need for grant or work
assistance under this title, except that in no case
shall the total amount of student financial assistance
awarded to a student under this title exceed that
student's cost of attendance, as defined in section
472.
``(4) Matching required.--A recipient of a grant
who uses such funds for the purpose described in
paragraph (1) shall match the funds used for such
purpose, in cash, from non-Federal funds, in an amount
that is not less than 33 percent of the total amount of
funds used for that purpose. This paragraph shall not
apply to any grant recipient that is an institution of
higher education eligible to receive funds under part A
or B of title III or title V.
``(5) Reservation.--In no event may a recipient use
more than 20 percent of the funds received under this
section for grant aid.
``(6) Supplement, not supplant.--Funds received by
a grant recipient that are used under this subsection
shall be used to supplement, and not supplant, non-
Federal funds expended for student support services
programs.''.
(b) The amendments made by subsection (a) shall apply with
respect to student support services grants awarded on or after
the date of enactment of this Act.
Sec. 318. (a) Subparagraph (B) of section 427A(c)(4) of the
Higher Education Act of 1965 (20 U.S.C. 1077a(c)(4)) is amended
to read as follows:
``(B)(i) For any 12-month period beginning
on July 1 and ending on or before June 30,
2001, the rate determined under this
subparagraph is determined on the preceding
June 1 and is equal to--
``(I) the bond equivalent rate of
52-week Treasury bills auctioned at the
final auction held prior to such June
1; plus
``(II) 3.25 percent.
``(ii) For any 12-month period beginning on
July 1 of 2001 or any succeeding year, the rate
determined under this subparagraph is
determined on the preceding June 26 and is
equal to--
``(I) the weekly average 1-year
constant maturity Treasury yield, as
published by the Board of Governors of
the Federal Reserve System, for the
last calendar week ending on or before
such June 26; plus
``(II) 3.25 percent.''.
(b) Subparagraph (A) of section 455(b)(4) of such Act (20
U.S.C. 1087e(b)(4)) is amended to read as follows:
``(A)(i) For Federal Direct PLUS Loans for
which the first disbursement is made on or
after July 1, 1994, the applicable rate of
interest shall, during any 12-month period
beginning on July 1 and ending on or before
June 30, 2001, be determined on the preceding
June 1 and be equal to--
``(I) the bond equivalent rate of
52-week Treasury bills auctioned at
final auction held prior to such June
1; plus
``(II) 3.1 percent,
except that such rate shall not exceed 9
percent.
``(ii) For any 12-month period beginning on
July 1 of 2001 or any succeeding year, the
applicable rate of interest determined under
this subparagraph shall be determined on the
preceding June 26 and be equal to--
``(I) the weekly average 1-year
constant maturity Treasury yield, as
published by the Board of Governors of
the Federal Reserve System, for the
last calendar week ending on or before
such June 26; plus
``(II) 3.1 percent,
except that such rate shall not exceed 9
percent.''.
Sec. 319. Section 1543 of the Higher Education Amendments
of 1992 (20 U.S.C. 1070 note) is amended by adding at the end
the following new subsection:
``(e) Designation.--Scholarships awarded under this section
shall be known as `B. J. Stupak Olympic Scholarships'.''.
Sec. 320. (a) Subject to subsection (c), the Secretary of
Education shall release the reversionary interests that were
retained by the United States, as part of the conveyance of
certain real property situated in the County of Marin, State of
California, in an April 3, 1978 Quitclaim Deed, which was filed
for record on June 5, 1978, in Book 3384, at page 33, of the
official Records of Marin County, California.
(b) The Secretary shall execute the release of the
reversionary interests under subsection (a) without
consideration.
(c) The Secretary shall execute and file in the appropriate
office or offices a deed of release, amended deed, or other
appropriate instruments effectuating the release of the
reversionary interests under subsection (a). In all other
respects the provisions of the April 3, 1978 Quitclaim Deed
shall remain intact.
Sec. 321. (a) Grants to Native American Schools and State
Educational Agencies.--
(1) Allocation of funds.--Of the amount made
available under the heading ``School improvement
programs'' for grants made in accordance with this
section for school repair and renovation, activities
under part B of the Individuals with Disabilities
Education Act (20 U.S.C. 1411 et seq.), and technology
activities, the Secretary of Education shall allocate--
(A) $75,000,000 for grants to impacted
local educational agencies (as defined in
paragraph (3)) for school repair, renovation,
and construction;
(B) $3,250,000 for grants to outlying areas
for school repair and renovation in high-need
schools and communities, allocated on such
basis, and subject to such terms and
conditions, as the Secretary determines
appropriate;
(C) $25,000,000 for grants to public
entities, private nonprofit entities, and
consortia of such entities, for use in
accordance with subpart 2 of part C of title X
of the Elementary and Secondary Education Act
of 1965; and
(D) the remainder to State educational
agencies in proportion to the amount each State
received under part A of title I of the
Elementary and Secondary Education Act of 1965
(20 U.S.C. 6311 et seq.) for fiscal year 2000,
except that no State shall receive less than
0.5 percent of the amount allocated under this
subparagraph.
(2) Determination of grant amount.--
(A) Determination of weighted student
units.--For purposes of computing the grant
amounts under paragraph (1)(A) for fiscal year
2001, the Secretary shall determine the results
obtained by the computation made under section
8003 of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 7703) with respect to
children described in subsection (a)(1)(C) of
such section and computed under subsection
(a)(2)(B) of such section for such year--
(i) for each impacted local
educational agency that receives funds
under this section; and
(ii) for all such agencies
together.
(B) Computation of payment.--For fiscal
year 2001, the Secretary shall calculate the
amount of a grant to an impacted local
educational agency by--
(i) dividing the amount described
in paragraph (1)(A) by the results of
the computation described in
subparagraph (A)(ii); and
(ii) multiplying the number derived
under clause (i) by the results of the
computation described in subparagraph
(A)(i) for such agency.
(3) Definition.--For purposes of this section, the
term ``impacted local educational agency'' means, for
fiscal year 2001--
(A) a local educational agency that
receives a basic support payment under section
8003(b) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7703(b)) for
such fiscal year; and
(B) with respect to which the number of
children determined under section 8003(a)(1)(C)
of such Act for the preceding school year
constitutes at least 50 percent of the total
student enrollment in the schools of the agency
during such school year.
(b) Within-State Allocations.--
(1) Administrative costs.--
(A) State educational agency
administration.--Except as provided in
subparagraph (B), each State educational agency
may reserve not more than 1 percent of its
allocation under subsection (a)(1)(D) for the
purpose of administering the distribution of
grants under this subsection.
(B) State entity administration.--If the
State educational agency transfers funds to a
State entity described in paragraph (2)(A), the
agency shall transfer to such entity 0.75 of
the amount reserved under this paragraph for
the purpose of administering the distribution
of grants under this subsection.
(2) Reservation for competitive school repair and
renovation grants to local educational agencies.--
(A) In general.--Subject to the reservation
under paragraph (1), of the funds allocated to
a State educational agency under subsection
(a)(1)(D), the State educational agency shall
distribute 75 percent of such funds to local
educational agencies or, if such State
educational agency is not responsible for the
financing of education facilities, the agency
shall transfer such funds to the State entity
responsible for the financing of education
facilities (referred to in this section as the
``State entity'') for distribution by such
entity to local educational agencies in
accordance with this paragraph, to be used,
consistent with subsection (c), for school
repair and renovation.
(B) Competitive grants to local educational
agencies.--
(i) In general.--The State
educational agency or State entity
shall carry out a program of
competitive grants to local educational
agencies for the purpose described in
subparagraph (A). Of the total amount
available for distribution to such
agencies under this paragraph, the
State educational agency or State
entity, shall, in carrying out the
competition--
(I) award to high poverty
local educational agencies
described in clause (ii), in
the aggregate, at least an
amount which bears the same
relationship to such total
amount as the aggregate amount
such local educational agencies
received under part A of title
I of the Elementary and
Secondary Education Act of 1965
for fiscal year 2000 bears to
the aggregate amount received
for such fiscal year under such
part by all local educational
agencies in the State;
(II) award to rural local
educational agencies in the
State, in the aggregate, at
least an amount which bears the
same relationship to such total
amount as the aggregate amount
such rural local educational
agencies received under part A
of title I of the Elementary
and Secondary Education Act of
1965 for fiscal year 2000 bears
to the aggregate amount
received for such fiscal year
under such part by all local
educational agencies in the
State; and
(III) award the remaining
funds to local educational
agencies not receiving an award
under subclause (I) or (II),
including high poverty and
rural local educational
agencies that did not receive
such an award.
(ii) High poverty local educational
agencies.--A local educational agency
is described in this clause if--
(I) the percentage
described in subparagraph
(C)(i) with respect to the
agency is 30 percent or
greater; or
(II) the number of children
described in such subparagraph
with respect to the agency is
at least 10,000.
(C) Criteria for awarding grants.--In
awarding competitive grants under this
paragraph, a State educational agency or State
entity shall take into account the following
criteria:
(i) The percentage of poor children
5 to 17 years of age, inclusive, in a
local educational agency.
(ii) The need of a local
educational agency for school repair
and renovation, as demonstrated by the
condition of its public school
facilities.
(iii) The fiscal capacity of a
local educational agency to meet its
needs for repair and renovation of
public school facilities without
assistance under this section,
including its ability to raise funds
through the use of local bonding
capacity and otherwise.
(iv) In the case of a local
educational agency that proposes to
fund a repair or renovation project for
a charter school or schools, the extent
to which the school or schools have
access to funding for the project
through the financing methods available
to other public schools or local
educational agencies in the State.
(v) The likelihood that the local
educational agency will maintain, in
good condition, any facility whose
repair or renovation is assisted under
this section.
(D) Possible matching requirement.--
(i) In general.--A State
educational agency or State entity may
require local educational agencies to
match funds awarded under this
subsection.
(ii) Match amount.--The amount of a
match described in clause (i) may be
established by using a sliding scale
that takes into account the relative
poverty of the population served by the
local educational agency.
(3) Reservation for competitive idea or technology
grants to local educational agencies.--
(A) In general.--Subject to the reservation
under paragraph (1), of the funds allocated to
a State educational agency under subsection
(a)(1)(D), the State educational agency shall
distribute 25 percent of such funds to local
educational agencies through competitive grant
processes, to be used for the following:
(i) To carry out activities under
part B of the Individuals with
Disabilities Education Act (20 U.S.C.
1411 et seq.).
(ii) For technology activities that
are carried out in connection with
school repair and renovation,
including--
(I) wiring;
(II) acquiring hardware and
software;
(III) acquiring
connectivity linkages and
resources; and
(IV) acquiring microwave,
fiber optics, cable, and
satellite transmission
equipment.
(B) Criteria for awarding idea grants.--In
awarding competitive grants under subparagraph
(A) to be used to carry out activities under
part B of the Individuals with Disabilities
Education Act (20 U.S.C. 1411 et seq.), a State
educational agency shall take into account the
following criteria:
(i) The need of a local educational
agency for additional funds for a
student whose individually allocable
cost for expenses related to the
Individuals with Disabilities Education
Act substantially exceeds the State's
average per-pupil expenditure (as
defined in section 14101(2) of the
Elementary and Secondary Education Act
of 1965 (20 U.S.C. 8801(2))).
(ii) The need of a local
educational agency for additional funds
for special education and related
services under part B of the
Individuals with Disabilities Education
Act (20 U.S.C. 1411 et seq.).
(iii) The need of a local
educational agency for additional funds
for assistive technology devices (as
defined in section 602 of the
Individuals with Disabilities Education
Act (20 U.S.C. 1401)) or assistive
technology services (as so defined) for
children being served under part B of
the Individuals with Disabilities
Education Act (20 U.S.C. 1411 et seq.).
(iv) The need of a local
educational agency for additional funds
for activities under part B of the
Individuals with Disabilities Education
Act (20 U.S.C. 1411 et seq.) in order
for children with disabilities to make
progress toward meeting the performance
goals and indicators established by the
State under section 612(a)(16) of such
Act (20 U.S.C. 1412).
(C) Criteria for awarding technology
grants.--In awarding competitive grants under
subparagraph (A) to be used for technology
activities that are carried out in connection
with school repair and renovation, a State
educational agency shall take into account the
need of a local educational agency for
additional funds for such activities, including
the need for the activities described in
subclauses (I) through (IV) of subparagraph
(A)(ii).
(c) Rules Applicable to School Repair and Renovation.--With
respect to funds made available under this section that are
used for school repair and renovation, the following rules
shall apply:
(1) Permissible uses of funds.--School repair and
renovation shall be limited to one or more of the
following:
(A) Emergency repairs or renovations to
public school facilities only to ensure the
health and safety of students and staff,
including--
(i) repairing, replacing, or
installing roofs, electrical wiring,
plumbing systems, or sewage systems;
(ii) repairing, replacing, or
installing heating, ventilation, or air
conditioning systems (including
insulation); and
(iii) bringing public schools into
compliance with fire and safety codes.
(B) School facilities modifications
necessary to render public school facilities
accessible in order to comply with the
Americans with Disabilities Act of 1990 (42
U.S.C. 12101 et seq.).
(C) School facilities modifications
necessary to render public school facilities
accessible in order to comply with section 504
of the Rehabilitation Act of 1973 (29 U.S.C.
794).
(D) Asbestos abatement or removal from
public school facilities.
(E) Renovation, repair, and acquisition
needs related to the building infrastructure of
a charter school.
(2) Impermissible uses of funds.--No funds received
under this section may be used for--
(A) payment of maintenance costs in
connection with any projects constructed in
whole or part with Federal funds provided under
this section;
(B) the construction of new facilities,
except for facilities for an impacted local
educational agency (as defined in subsection
(a)(3)); or
(C) stadiums or other facilities primarily
used for athletic contests or exhibitions or
other events for which admission is charged to
the general public.
(3) Charter schools.--A public charter school that
constitutes a local educational agency under State law
shall be eligible for assistance under the same terms
and conditions as any other local educational agency
(as defined in section 14101(18) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 8801(18))).
(4) Supplement, not supplant.--Excluding the uses
described in subparagraphs (B) and (C) of paragraph
(1), a local educational agency shall use Federal funds
subject to this subsection only to supplement the
amount of funds that would, in the absence of such
Federal funds, be made available from non-Federal
sources for school repair and renovation.
(d) Special Rule.--Each local educational agency that
receives funds under this section shall ensure that, if it
carries out repair or renovation through a contract, any such
contract process ensures the maximum number of qualified
bidders, including small, minority, and women-owned businesses,
through full and open competition.
(e) Public Comment.--Each local educational agency
receiving funds under paragraph (2) or (3) of subsection (b)--
(1) shall provide parents, educators, and all other
interested members of the community the opportunity to
consult on the use of funds received under such
paragraph;
(2) shall provide the public with adequate and
efficient notice of the opportunity described in
paragraph (1) in a widely read and distributed medium;
and
(3) shall provide the opportunity described in
paragraph (1) in accordance with any applicable State
and local law specifying how the comments may be
received and how the comments may be reviewed by any
member of the public.
(f) Reporting.--
(1) Local reporting.--Each local educational agency
receiving funds under subsection (a)(1)(D) shall submit
a report to the State educational agency, at such time
as the State educational agency may require, describing
the use of such funds for--
(A) school repair and renovation (and
construction, in the case of an impacted local
educational agency (as defined in subsection
(a)(3)));
(B) activities under part B of the
Individuals with Disabilities Education Act (20
U.S.C. 1411 et seq.); and
(C) technology activities that are carried
out in connection with school repair and
renovation, including the activities described
in subclauses (I) through (IV) of subsection
(b)(3)(A)(ii).
(2) State reporting.--Each State educational agency
shall submit to the Secretary of Education, not later
than December 31, 2002, a report on the use of funds
received under subsection (a)(1)(D) by local
educational agencies for--
(A) school repair and renovation (and
construction, in the case of an impacted local
educational agency (as defined in subsection
(a)(3)));
(B) activities under part B of the
Individuals with Disabilities Education Act (20
U.S.C. 1411 et seq.); and
(C) technology activities that are carried
out in connection with school repair and
renovation, including the activities described
in subclauses (I) through (IV) of subsection
(b)(3)(A)(ii).
(3) Additional reports.--Each entity receiving
funds allocated under subsection (a)(1)(A) or (B) shall
submit to the Secretary, not later than December 31,
2002, a report on its uses of funds under this section,
in such form and containing such information as the
Secretary may require.
(g) Applicability of Part B of IDEA.--If a local
educational agency uses funds received under this section to
carry out activities under part B of the Individuals with
Disabilities Education Act (20 U.S.C. 1411 et seq.), such part
(including provisions respecting the participation of private
school children), and any other provision of law that applies
to such part, shall apply to such use.
(h) Reallocation.--If a State educational agency does not
apply for an allocation of funds under subsection (a)(1)(D) for
fiscal year 2001, or does not use its entire allocation for
such fiscal year, the Secretary may reallocate the amount of
the State educational agency's allocation (or the remainder
thereof, as the case may be) to the remaining State educational
agencies in accordance with subsection (a)(1)(D).
(i) Participation of Private Schools.--
(1) In general.--Section 6402 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7372) shall
apply to subsection (b)(2) in the same manner as it
applies to activities under title VI of such Act,
except that--
(A) such section shall not apply with
respect to the title to any real property
renovated or repaired with assistance provided
under this section;
(B) the term ``services'' as used in
section 6402 of such Act with respect to funds
under this section shall be provided only to
private, nonprofit elementary or secondary
schools with a rate of child poverty of at
least 40 percent and may include for purposes
of subsection (b)(2) only--
(i) modifications of school
facilities necessary to meet the
standards applicable to public schools
under the Americans with Disabilities
Act of 1990 (42 U.S.C. 12101 et seq.);
(ii) modifications of school
facilities necessary to meet the
standards applicable to public schools
under section 504 of the Rehabilitation
Act of 1973 (29 U.S.C. 794); and
(iii) asbestos abatement or removal
from school facilities; and
(C) notwithstanding the requirements of
section 6402(b) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7372(b)),
expenditures for services provided using funds
made available under subsection (b)(2) shall be
considered equal for purposes of such section
if the per-pupil expenditures for services
described in subparagraph (B) for students
enrolled in private nonprofit elementary and
secondary schools that have child poverty rates
of at least 40 percent are consistent with the
per-pupil expenditures under this section for
children enrolled in the public schools in the
school district of the local educational agency
receiving funds under this section.
(2) Remaining funds.--If the expenditure for
services described in paragraph (1)(B) is less than the
amount calculated under paragraph (1)(C) because of
insufficient need for such services, the remainder
shall be available to the local educational agency for
renovation and repair of public school facilities.
(3) Application.--If any provision of this section,
or the application thereof, to any person or
circumstances is judicially determined to be invalid,
the provisions of the remainder of the section and the
application to other persons or circumstances shall not
be affected thereby.
(j) Definitions.--For purposes of this section:
(1) Charter school.--The term ``charter school''
has the meaning given such term in section 10310(1) of
the Elementary and Secondary Education Act of 1965 (20
U.S.C. 8066(1)).
(2) Elementary school.--The term ``elementary
school'' has the meaning given such term in section
14101(14) of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 8801(14)).
(3) Local educational agency.--The term ``local
educational agency'' has the meaning given such term in
subparagraphs (A) and (B) of section 14101(18) of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 8801(18)).
(4) Outlying area.--The term ``outlying area'' has
the meaning given such term in section 14101(21) of the
Elementary and Secondary Act of 1965 (20 U.S.C.
8801(21)).
(5) Poor children and child poverty.--The terms
``poor children'' and ``child poverty'' refer to
children 5 to 17 years of age, inclusive, who are from
families with incomes below the poverty line (as
defined by the Office of Management and Budget and
revised annually in accordance with section 673(2) of
the Community Services Block Grant (42 U.S.C. 9902(2))
applicable to a family of the size involved for the
most recent fiscal year for which data satisfactory to
the Secretary are available.
(6) Rural local educational agency.--The term
``rural local educational agency'' means a local
educational agency that the State determines is located
in a rural area using objective data and a commonly
employed definition of the term ``rural''.
(7) Secondary school.--The term ``secondary
school'' has the meaning given such term in section
14101(25) of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 8801(25)).
(8) State.--The term ``State'' means each of the 50
states, the District of Columbia, and the Commonwealth
of Puerto Rico.
Sec. 322. (a) Part C of title X of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 8061 et seq.) is
amended--
(1) by inserting after the part heading the
following:
``Subpart 1--Basic Charter School Grant Program'';
and
(2) by adding at the end the following:
``Subpart 2--Credit Enhancement Initiatives To Assist Charter School
Facility Acquisition, Construction, and Renovation
``SEC. 10321. PURPOSE.
``The purpose of this subpart is to provide one-time grants
to eligible entities to permit them to demonstrate innovative
credit enhancement initiatives that assist charter schools to
address the cost of acquiring, constructing, and renovating
facilities.
``SEC. 10322. GRANTS TO ELIGIBLE ENTITIES.
``(a) In General.--The Secretary shall use 100 percent of
the amount available to carry out this subpart to award not
less than 3 grants to eligible entities having applications
approved under this subpart to demonstrate innovative methods
of assisting charter schools to address the cost of acquiring,
constructing, and renovating facilities by enhancing the
availability of loans or bond financing.
``(b) Grantee Selection.--The Secretary shall evaluate each
application submitted, and shall make a determination of which
are sufficient to merit approval and which are not. The
Secretary shall award at least one grant to an eligible entity
described in section 10330(2)(A), at least one grant to an
eligible entity described in section 10330(2)(B), and at least
one grant to an eligible entity described in section
10330(2)(C), if applications are submitted that permit the
Secretary to do so without approving an application that is not
of sufficient quality to merit approval.
``(c) Grant Characteristics.--Grants under this subpart
shall be of a sufficient size, scope, and quality so as to
ensure an effective demonstration of an innovative means of
enhancing credit for the financing of charter school
acquisition, construction, or renovation.
``(d) Special Rule.--In the event the Secretary determines
that the funds available are insufficient to permit the
Secretary to award not less than 3 grants in accordance with
subsections (a) through (c), such 3-grant minimum and the
second sentence of subsection (b) shall not apply, and the
Secretary may determine the appropriate number of grants to be
awarded in accordance with subsection (c).
``SEC. 10323. APPLICATIONS.
``(a) In General.--To receive a grant under this subpart,
an eligible entity shall submit to the Secretary an application
in such form as the Secretary may reasonably require.
``(b) Contents.--An application under subsection (a) shall
contain--
``(1) a statement identifying the activities
proposed to be undertaken with funds received under
this subpart, including how the applicant will
determine which charter schools will receive
assistance, and how much and what types of assistance
charter schools will receive;
``(2) a description of the involvement of charter
schools in the application's development and the design
of the proposed activities;
``(3) a description of the applicant's expertise in
capital market financing;
``(4) a description of how the proposed activities
will leverage the maximum amount of private-sector
financing capital relative to the amount of government
funding used and otherwise enhance credit available to
charter schools;
``(5) a description of how the applicant possesses
sufficient expertise in education to evaluate the
likelihood of success of a charter school program for
which facilities financing is sought;
``(6) in the case of an application submitted by a
State governmental entity, a description of the actions
that the entity has taken, or will take, to ensure that
charter schools within the State receive the funding
they need to have adequate facilities; and
``(7) such other information as the Secretary may
reasonably require.
``SEC. 10324. CHARTER SCHOOL OBJECTIVES.
``An eligible entity receiving a grant under this subpart
shall use the funds deposited in the reserve account
established under section 10325(a) to assist one or more
charter schools to access private sector capital to accomplish
one or both of the following objectives:
``(1) The acquisition (by purchase, lease,
donation, or otherwise) of an interest (including an
interest held by a third party for the benefit of a
charter school) in improved or unimproved real property
that is necessary to commence or continue the operation
of a charter school.
``(2) The construction of new facilities, or the
renovation, repair, or alteration of existing
facilities, necessary to commence or continue the
operation of a charter school.
``SEC. 10325. RESERVE ACCOUNT.
``(a) Use of Funds.--To assist charter schools to
accomplish the objectives described in section 10324, an
eligible entity receiving a grant under this subpart shall, in
accordance with State and local law, directly or indirectly,
alone or in collaboration with others, deposit the funds
received under this subpart (other than funds used for
administrative costs in accordance with section 10326) in a
reserve account established and maintained by the entity for
this purpose. Amounts deposited in such account shall be used
by the entity for one or more of the following purposes:
``(1) Guaranteeing, insuring, and reinsuring bonds,
notes, evidences of debt, loans, and interests therein,
the proceeds of which are used for an objective
described in section 10324.
``(2) Guaranteeing and insuring leases of personal
and real property for an objective described in section
10324.
``(3) Facilitating financing by identifying
potential lending sources, encouraging private lending,
and other similar activities that directly promote
lending to, or for the benefit of, charter schools.
``(4) Facilitating the issuance of bonds by charter
schools, or by other public entities for the benefit of
charter schools, by providing technical,
administrative, and other appropriate assistance
(including the recruitment of bond counsel,
underwriters, and potential investors and the
consolidation of multiple charter school projects
within a single bond issue).
``(b) Investment.--Funds received under this subpart and
deposited in the reserve account shall be invested in
obligations issued or guaranteed by the United States or a
State, or in other similarly low-risk securities.
``(c) Reinvestment of Earnings.--Any earnings on funds
received under this subpart shall be deposited in the reserve
account established under subsection (a) and used in accordance
with such subsection.
``SEC. 10326. LIMITATION ON ADMINISTRATIVE COSTS.
``An eligible entity may use not more than 0.25 percent of
the funds received under this subpart for the administrative
costs of carrying out its responsibilities under this subpart.
``SEC. 10327. AUDITS AND REPORTS.
``(a) Financial Record Maintenance and Audit.--The
financial records of each eligible entity receiving a grant
under this subpart shall be maintained in accordance with
generally accepted accounting principles and shall be subject
to an annual audit by an independent public accountant.
``(b) Reports.--
``(1) Grantee annual reports.--Each eligible entity
receiving a grant under this subpart annually shall
submit to the Secretary a report of its operations and
activities under this subpart.
``(2) Contents.--Each such annual report shall
include--
``(A) a copy of the most recent financial
statements, and any accompanying opinion on
such statements, prepared by the independent
public accountant reviewing the financial
records of the eligible entity;
``(B) a copy of any report made on an audit
of the financial records of the eligible entity
that was conducted under subsection (a) during
the reporting period;
``(C) an evaluation by the eligible entity
of the effectiveness of its use of the Federal
funds provided under this subpart in leveraging
private funds;
``(D) a listing and description of the
charter schools served during the reporting
period;
``(E) a description of the activities
carried out by the eligible entity to assist
charter schools in meeting the objectives set
forth in section 10324; and
``(F) a description of the characteristics
of lenders and other financial institutions
participating in the activities undertaken by
the eligible entity under this subpart during
the reporting period.
``(3) Secretarial report.--The Secretary shall
review the reports submitted under paragraph (1) and
shall provide a comprehensive annual report to the
Congress on the activities conducted under this
subpart.
``SEC. 10328. NO FULL FAITH AND CREDIT FOR GRANTEE OBLIGATIONS.
``No financial obligation of an eligible entity entered
into pursuant to this subpart (such as an obligation under a
guarantee, bond, note, evidence of debt, or loan) shall be an
obligation of, or guaranteed in any respect by, the United
States. The full faith and credit of the United States is not
pledged to the payment of funds which may be required to be
paid under any obligation made by an eligible entity pursuant
to any provision of this subpart.
``SEC. 10329. RECOVERY OF FUNDS.
``(a) In General.--The Secretary, in accordance with
chapter 37 of title 31, United States Code, shall collect--
``(1) all of the funds in a reserve account
established by an eligible entity under section
10325(a) if the Secretary determines, not earlier than
2 years after the date on which the entity first
received funds under this subpart, that the entity has
failed to make substantial progress in carrying out the
purposes described in section 10325(a); or
``(2) all or a portion of the funds in a reserve
account established by an eligible entity under section
10325(a) if the Secretary determines that the eligible
entity has permanently ceased to use all or a portion
of the funds in such account to accomplish any purpose
described in section 10325(a).
``(b) Exercise of Authority.--The Secretary shall not
exercise the authority provided in subsection (a) to collect
from any eligible entity any funds that are being properly used
to achieve one or more of the purposes described in section
10325(a).
``(c) Procedures.--The provisions of sections 451, 452, and
458 of the General Education Provisions Act (20 U.S.C. 1234 et
seq.) shall apply to the recovery of funds under subsection
(a).
``(d) Construction.--This section shall not be construed to
impair or affect the authority of the Secretary to recover
funds under part D of the General Education Provisions Act (20
U.S.C. 1234 et seq.).
``SEC. 10330. DEFINITIONS.
``In this subpart:
``(1) The term `charter school' has the meaning
given such term in section 10310.
``(2) The term `eligible entity' means--
``(A) a public entity, such as a State or
local governmental entity;
``(B) a private nonprofit entity; or
``(C) a consortium of entities described in
subparagraphs (A) and (B).
``SEC. 10331. AUTHORIZATION OF APPROPRIATIONS.
``For the purpose of carrying out this subpart, there are
authorized to be appropriated $100,000,000 for fiscal year
2001.''.
(b) Part C of title X of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 8061 et seq.) is amended in
each of the following provisions by striking ``part'' each
place such term appears and inserting ``subpart'':
(1) Sections 10301 through 10305.
(2) Section 10307.
(3) Sections 10309 through 10311.
Sec. 323. (a) Section 8003(b)(2)(F) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7703(b)(2)(F)) is
amended--
(1) by striking ``the Secretary shall use'' and
inserting ``the Secretary--
``(i) shall use'';
(2) by striking the period at the end and inserting
``; and''; and
(3) by adding at the end the following:
``(ii) except as provided in
subparagraph (C)(i)(I), shall include
all of the children described in
subparagraphs (F) and (G) of subsection
(a)(1) enrolled in schools of the local
educational agency in determining (I)
the eligibility of the agency for
assistance under this paragraph, and
(II) the amount of such assistance if
the number of such children meet the
requirements of subsection (a)(3).''.
(b) Section 8003(b)(2) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7703(b)(2)) is amended by
adding at the end the following:
``(G) Determination of average tax rates
for general fund purposes.--For the purpose of
determining average tax rates for general fund
purposes for local educational agencies in a
State under this paragraph (except under
subparagraph (C)(i)(II)(bb)), the Secretary
shall use either--
``(i) the average tax rate for
general fund purposes for comparable
local educational agencies, as
determined by the Secretary in
regulations; or
``(ii) the average tax rate of all
the local educational agencies in the
State.''.
This title may be cited as the ``Department of Education
Appropriations Act, 2001''.
TITLE IV--RELATED AGENCIES
Armed Forces Retirement Home
For expenses necessary for the Armed Forces Retirement Home
to operate and maintain the United States Soldiers' and
Airmen's Home and the United States Naval Home, to be paid from
funds available in the Armed Forces Retirement Home Trust Fund,
$69,832,000, of which $9,832,000 shall remain available until
expended for construction and renovation of the physical plants
at the United States Soldiers' and Airmen's Home and the United
States Naval Home: Provided, That, notwithstanding any other
provision of law, a single contract or related contracts for
development and construction, to include construction of a
long-term care facility at the United States Naval Home, may be
employed which collectively include the full scope of the
project: Provided further, That the solicitation and contract
shall contain the clause ``availability of funds'' found at 48
CFR 52.232-18 and 252.232-7007, Limitation of Government
Obligations.
Corporation for National and Community Service
domestic volunteer service programs, operating expenses
For expenses necessary for the Corporation for National and
Community Service to carry out the provisions of the Domestic
Volunteer Service Act of 1973, as amended, $303,850,000:
Provided, That none of the funds made available to the
Corporation for National and Community Service in this Act for
activities authorized by part E of title II of the Domestic
Volunteer Service Act of 1973 shall be used to provide stipends
or other monetary incentives to volunteers or volunteer leaders
whose incomes exceed 125 percent of the national poverty level.
Corporation for Public Broadcasting
For payment to the Corporation for Public Broadcasting, as
authorized by the Communications Act of 1934, an amount which
shall be available within limitations specified by that Act,
for the fiscal year 2003, $365,000,000: Provided, That no funds
made available to the Corporation for Public Broadcasting by
this Act shall be used to pay for receptions, parties, or
similar forms of entertainment for Government officials or
employees: Provided further, That none of the funds contained
in this paragraph shall be available or used to aid or support
any program or activity from which any person is excluded, or
is denied benefits, or is discriminated against, on the basis
of race, color, national origin, religion, or sex: Provided
further, That in addition to the amounts provided above,
$20,000,000, to remain available until expended, shall be for
digitalization, pending enactment of authorizing legislation.
Federal Mediation and Conciliation Service
salaries and expenses
For expenses necessary for the Federal Mediation and
Conciliation Service to carry out the functions vested in it by
the Labor Management Relations Act, 1947 (29 U.S.C. 171-180,
182-183), including hire of passenger motor vehicles; for
expenses necessary for the Labor-Management Cooperation Act of
1978 (29 U.S.C. 175a); and for expenses necessary for the
Service to carry out the functions vested in it by the Civil
Service Reform Act, Public Law 95-454 (5 U.S.C. ch. 71),
$38,200,000, including $1,500,000, to remain available through
September 30, 2002, for activities authorized by the Labor-
Management Cooperation Act of 1978 (29 U.S.C. 175a): Provided,
That notwithstanding 31 U.S.C. 3302, fees charged, up to full-
cost recovery, for special training activities and other
conflict resolution services and technical assistance,
including those provided to foreign governments and
international organizations, and for arbitration services shall
be credited to and merged with this account, and shall remain
available until expended: Provided further, That fees for
arbitration services shall be available only for education,
training, and professional development of the agency workforce:
Provided further, That the Director of the Service is
authorized to accept and use on behalf of the United States
gifts of services and real, personal, or other property in the
aid of any projects or functions within the Director's
jurisdiction.
Federal Mine Safety and Health Review Commission
salaries and expenses
For expenses necessary for the Federal Mine Safety and
Health Review Commission (30 U.S.C. 801 et seq.), $6,320,000.
Institute of Museum and Library Services
office of library services: grants and administration
For carrying out subtitle B of the Museum and Library
Services Act, $207,219,000: Provided, That of the amount
provided, $1,000,000 shall be awarded to the National Museum of
Women in the Arts in Washington, D.C., $700,000 shall be
awarded to the University of Idaho Institute for the Historic
Study of Jazz, $2,600,000 shall be awarded to Southeast
Missouri State University River Campus and Museum, $900,000
shall be awarded to the Heritage Harbor Museum in Rhode Island,
$500,000 shall be awarded to the Alaska Native Heritage Center,
$576,000 shall be awarded to the Franklin Institute in
Philadelphia, $925,000 shall be awarded to the Please Touch
Museum, $250,000 shall be awarded to the Pittsburgh Children's
Museum, $510,000 shall be awarded to the Temple University
Library, $1,800,000 shall be awarded to Franklin Pierce College
in New Hampshire, $500,000 shall be awarded to the Louisville
Zoo in Kentucky, $150,000 shall be awarded to the Oregon
Historical Society, $1,200,000 shall be awarded to the
Mississippi River Museum and Discovery Center in Dubuque, Iowa,
$650,000 shall be awarded to the Salisbury House Foundation in
Des Moines, Iowa, $150,000 shall be awarded to the History
Center for the Linn County Historical Museum in Iowa,
$4,000,000 shall be awarded to the Newsline for the Blind, of
which $100,000 shall be awarded to the Iowa Newsline for the
Blind and $100,000 shall be awarded to the West Virginia
Newsline for the Blind, $1,000,000 shall be awarded to the Clay
Center for the Arts and Sciences, $650,000 shall be awarded to
Bishops Museum in Hawaii, $500,000 shall be awarded to the
Wisconsin Maritime Museum, $250,000 shall be awarded to the
Natural History Museum of Los Angeles, $400,000 shall be
awarded to the Perkins Geology Museum at the University of
Vermont, $400,000 shall be awarded to the Walt Whitman Cultural
Arts Center in Camden, New Jersey, $400,000 shall be awarded to
the Plainfield Public Library in Plainfield, New Jersey,
$150,000 shall be awarded to the Ducktown Arts District in
Atlantic City, New Jersey, $400,000 shall be awarded to the
Lake Champlain Science Center in Vermont, $250,000 shall be
awarded to the Foundation for the Arts, Music, and
Entertainment of Shreveport-Bossier, Inc., $100,000 shall be
awarded to Bryant College in Rhode Island, $120,000 shall be
awarded to the Fenton Historical Museum of Jamestown, New York,
$921,000 shall be awarded to the Mariners' Museum in Newport
News, Virginia, $461,000 shall be awarded to DuPage County
Children's Museum in Naperville, Illinois, $369,000 shall be
awarded to the National Baseball Hall of Fame Library in
Cooperstown, New York, $92,000 shall be awarded to the City of
Corona, Riverside, California, $6,000 shall be awarded to the
City of Murrieta, California Public Library, $1,382,000 shall
be awarded to the Sierra Madre, California Public Library,
$23,000 shall be awarded to the Brooklyn Public Library in
Brooklyn, New York, $46,000 shall be awarded to the New York
Public Library Staten Island branch, $266,000 shall be awarded
to the Edward H. Nabb Research Center at Salisbury State
University in Salisbury, Maryland, $461,000 shall be awarded to
Texas Tech University, $230,000 shall be awarded to the City of
Ontario, California Public Library, $461,000 shall be awarded
to the Southern Oregon University in Ashland, Oregon,
$1,106,000 shall be awarded to Christopher Newport University
in Newport News, Virginia, $128,000 shall be awarded to the
Nassau County Museum of Art in Roslyn Harbor, New York,
$850,000 shall be awarded to the Children's Museum of Los
Angeles, $43,000 shall be awarded to Sumter County Library in
Sumter, South Carolina, $298,000 shall be awarded to Columbia
College Center for Black Music Research in Chicago, Illinois,
$723,000 shall be awarded to Old Sturbridge Village in
Sturbridge, Massachusetts, $723,000 shall be awarded to New
Bedford Whaling Museum in Massachusetts, $298,000 shall be
awarded to Mystic Seaport Museum of America and the Sea in
Connecticut, $468,000 shall be awarded to the City of Houston
Public Library, $128,000 shall be awarded to the Roberson
Museum and Science Center in Binghampton, New York, $850,000
shall be awarded to Berman Museum of Art at Ursinus College in
Collegeville, Pennsylvania, $680,000 shall be awarded to
AMISTAD Research Center at Tulane University, $2,125,000 shall
be awarded to Silas Bronson Library in Waterbury, Connecticut,
$213,000 shall be awarded to Fitchburg Art Museum in Fitchburg,
Massachusetts, $128,000 shall be awarded to North Carolina
Museum of Life and Science, $2,435,000 shall be awarded to New
York Public Library, $85,000 shall be awarded to the New York
Botanical Garden in Bronx, New York, $170,000 shall be awarded
to George Eastman House in Rochester, New York, $425,000 shall
be awarded to The National Aviary in Pittsburgh, Pennsylvania,
$723,000 shall be awarded to the George C. Page Museum in Los
Angeles, California, $461,000 shall be awarded to the Abraham
Lincoln Bicentennial Commission, and $410,000 shall be awarded
to the AE Seaman Mineral Museum in Houghton, Michigan.
Medicare Payment Advisory Commission
salaries and expenses
For expenses necessary to carry out section 1805 of the
Social Security Act, $8,000,000, to be transferred to this
appropriation from the Federal Hospital Insurance and the
Federal Supplementary Medical Insurance Trust Funds.
National Commission on Libraries and Information Science
salaries and expenses
For necessary expenses for the National Commission on
Libraries and Information Science, established by the Act of
July 20, 1970 (Public Law 91-345, as amended), $1,495,000.
National Council on Disability
salaries and expenses
For expenses necessary for the National Council on
Disability as authorized by title IV of the Rehabilitation Act
of 1973, as amended, $2,615,000.
National Education Goals Panel
For expenses necessary for the National Education Goals
Panel, as authorized by title II, part A of the Goals 2000:
Educate America Act, $1,500,000.
National Labor Relations Board
salaries and expenses
For expenses necessary for the National Labor Relations
Board to carry out the functions vested in it by the Labor-
Management Relations Act, 1947, as amended (29 U.S.C. 141-167),
and other laws, $216,438,000: Provided, That no part of this
appropriation shall be available to organize or assist in
organizing agricultural laborers or used in connection with
investigations, hearings, directives, or orders concerning
bargaining units composed of agricultural laborers as referred
to in section 2(3) of the Act of July 5, 1935 (29 U.S.C. 152),
and as amended by the Labor-Management Relations Act, 1947, as
amended, and as defined in section 3(f) of the Act of June 25,
1938 (29 U.S.C. 203), and including in said definition
employees engaged in the maintenance and operation of ditches,
canals, reservoirs, and waterways when maintained or operated
on a mutual, nonprofit basis and at least 95 percent of the
water stored or supplied thereby is used for farming purposes.
National Mediation Board
salaries and expenses
For expenses necessary to carry out the provisions of the
Railway Labor Act, as amended (45 U.S.C. 151-188), including
emergency boards appointed by the President, $10,400,000.
Occupational Safety and Health Review Commission
salaries and expenses
For expenses necessary for the Occupational Safety and
Health Review Commission (29 U.S.C. 661), $8,720,000.
Railroad Retirement Board
dual benefits payments account
For payment to the Dual Benefits Payments Account,
authorized under section 15(d) of the Railroad Retirement Act
of 1974, $160,000,000, which shall include amounts becoming
available in fiscal year 2001 pursuant to section 224(c)(1)(B)
of Public Law 98-76; and in addition, an amount, not to exceed
2 percent of the amount provided herein, shall be available
proportional to the amount by which the product of recipients
and the average benefit received exceeds $160,000,000:
Provided, That the total amount provided herein shall be
credited in 12 approximately equal amounts on the first day of
each month in the fiscal year.
federal payments to the railroad retirement accounts
For payment to the accounts established in the Treasury for
the payment of benefits under the Railroad Retirement Act for
interest earned on unnegotiated checks, $150,000, to remain
available through September 30, 2002, which shall be the
maximum amount available for payment pursuant to section 417 of
Public Law 98-76.
limitation on administration
For necessary expenses for the Railroad Retirement Board
for administration of the Railroad Retirement Act and the
Railroad Unemployment Insurance Act, $95,000,000, to be derived
in such amounts as determined by the Board from the railroad
retirement accounts and from moneys credited to the railroad
unemployment insurance administration fund.
limitation on the office of inspector general
For expenses necessary for the Office of Inspector General
for audit, investigatory and review activities, as authorized
by the Inspector General Act of 1978, as amended, not more than
$5,700,000, to be derived from the railroad retirement accounts
and railroad unemployment insurance account: Provided, That
none of the funds made available in any other paragraph of this
Act may be transferred to the Office; used to carry out any
such transfer; used to provide any office space, equipment,
office supplies, communications facilities or services,
maintenance services, or administrative services for the
Office; used to pay any salary, benefit, or award for any
personnel of the Office; used to pay any other operating
expense of the Office; or used to reimburse the Office for any
service provided, or expense incurred, by the Office.
Social Security Administration
payments to social security trust funds
For payment to the Federal Old-Age and Survivors Insurance
and the Federal Disability Insurance trust funds, as provided
under sections 201(m), 228(g), and 1131(b)(2) of the Social
Security Act, $20,400,000.
special benefits for disabled coal miners
For carrying out title IV of the Federal Mine Safety and
Health Act of 1977, $365,748,000, to remain available until
expended.
For making, after July 31 of the current fiscal year,
benefit payments to individuals under title IV of the Federal
Mine Safety and Health Act of 1977, for costs incurred in the
current fiscal year, such amounts as may be necessary.
For making benefit payments under title IV of the Federal
Mine Safety and Health Act of 1977 for the first quarter of
fiscal year 2002, $114,000,000, to remain available until
expended.
supplemental security income program
For carrying out titles XI and XVI of the Social Security
Act, section 401 of Public Law 92-603, section 212 of Public
Law 93-66, as amended, and section 405 of Public Law 95-216,
including payment to the Social Security trust funds for
administrative expenses incurred pursuant to section 201(g)(1)
of the Social Security Act, $23,043,000,000, to remain
available until expended: Provided, That any portion of the
funds provided to a State in the current fiscal year and not
obligated by the State during that year shall be returned to
the Treasury.
In addition, $210,000,000, to remain available until
September 30, 2002, for payment to the Social Security trust
funds for administrative expenses for continuing disability
reviews as authorized by section 103 of Public Law 104-121 and
section 10203 of Public Law 105-33. The term ``continuing
disability reviews'' means reviews and redeterminations as
defined under section 201(g)(1)(A) of the Social Security Act,
as amended.
For making, after June 15 of the current fiscal year,
benefit payments to individuals under title XVI of the Social
Security Act, for unanticipated costs incurred for the current
fiscal year, such sums as may be necessary.
For making benefit payments under title XVI of the Social
Security Act for the first quarter of fiscal year 2002,
$10,470,000,000, to remain available until expended.
limitation on administrative expenses
For necessary expenses, including the hire of two passenger
motor vehicles, and not to exceed $10,000 for official
reception and representation expenses, not more than
$6,583,000,000 may be expended, as authorized by section
201(g)(1) of the Social Security Act, from any one or all of
the trust funds referred to therein: Provided, That not less
than $1,800,000 shall be for the Social Security Advisory
Board: Provided further, That unobligated balances at the end
of fiscal year 2001 not needed for fiscal year 2001 shall
remain available until expended to invest in the Social
Security Administration information technology and
telecommunications hardware and software infrastructure,
including related equipment and non-payroll administrative
expenses associated solely with this information technology and
telecommunications infrastructure: Provided further, That
reimbursement to the trust funds under this heading for
expenditures for official time for employees of the Social
Security Administration pursuant to section 7131 of title 5,
United States Code, and for facilities or support services for
labor organizations pursuant to policies, regulations, or
procedures referred to in section 7135(b) of such title shall
be made by the Secretary of the Treasury, with interest, from
amounts in the general fund not otherwise appropriated, as soon
as possible after such expenditures are made.
From funds provided under the previous paragraph,
notwithstanding the provision under this heading in Public Law
106-113 regarding unobligated balances at the end of fiscal
year 2000 not needed for such fiscal year, an amount not to
exceed $50,000,000 from such unobligated balances shall, in
addition to funding already available under this heading for
fiscal year 2001, be available for necessary expenses.
From funds provided under the first paragraph, not less
than $200,000,000 shall be available for conducting continuing
disability reviews.
In addition to funding already available under this
heading, and subject to the same terms and conditions,
$450,000,000, to remain available until September 30, 2002, for
continuing disability reviews as authorized by section 103 of
Public Law 104-121 and section 10203 of Public Law 105-33. The
term ``continuing disability reviews'' means reviews and
redeterminations as defined under section 201(g)(1)(A) of the
Social Security Act, as amended.
In addition, $91,000,000 to be derived from administration
fees in excess of $5.00 per supplementary payment collected
pursuant to section 1616(d) of the Social Security Act or
section 212(b)(3) of Public Law 93-66, which shall remain
available until expended. To the extent that the amounts
collected pursuant to such section 1616(d) or 212(b)(3) in
fiscal year 2001 exceed $91,000,000, the amounts shall be
available in fiscal year 2002 only to the extent provided in
advance in appropriations Acts.
From funds previously appropriated for this purpose, any
unobligated balances at the end of fiscal year 2000 shall be
available to continue Federal-State partnerships which will
evaluate means to promote Medicare buy-in programs targeted to
elderly and disabled individuals under titles XVIII and XIX of
the Social Security Act.
From funds provided under the first paragraph, up to
$6,000,000 shall be available for implementation, development,
evaluation, and other costs associated with administration of
section 302 of the Ticket to Work and Work Incentives
Improvement Act.
office of inspector general
(including transfer of funds)
For expenses necessary for the Office of Inspector General
in carrying out the provisions of the Inspector General Act of
1978, as amended, $16,944,000, together with not to exceed
$52,500,000, to be transferred and expended as authorized by
section 201(g)(1) of the Social Security Act from the Federal
Old-Age and Survivors Insurance Trust Fund and the Federal
Disability Insurance Trust Fund.
In addition, an amount not to exceed 3 percent of the total
provided in this appropriation may be transferred from the
``Limitation on Administrative Expenses'', Social Security
Administration, to be merged with this account, to be available
for the time and purposes for which this account is available:
Provided, That notice of such transfers shall be transmitted
promptly to the Committees on Appropriations of the House and
Senate.
United States Institute of Peace
operating expenses
For necessary expenses of the United States Institute of
Peace as authorized in the United States Institute of Peace
Act, $15,000,000.
TITLE V--GENERAL PROVISIONS
Sec. 501. The Secretaries of Labor, Health and Human
Services, and Education are authorized to transfer unexpended
balances of prior appropriations to accounts corresponding to
current appropriations provided in this Act: Provided, That
such transferred balances are used for the same purpose, and
for the same periods of time, for which they were originally
appropriated.
Sec. 502. No part of any appropriation contained in this
Act shall remain available for obligation beyond the current
fiscal year unless expressly so provided herein.
Sec. 503. (a) No part of any appropriation contained in
this Act shall be used, other than for normal and recognized
executive-legislative relationships, for publicity or
propaganda purposes, for the preparation, distribution, or use
of any kit, pamphlet, booklet, publication, radio, television,
or video presentation designed to support or defeat legislation
pending before the Congress or any State legislature, except in
presentation to the Congress or any State legislature itself.
(b) No part of any appropriation contained in this Act
shall be used to pay the salary or expenses of any grant or
contract recipient, or agent acting for such recipient, related
to any activity designed to influence legislation or
appropriations pending before the Congress or any State
legislature.
Sec. 504. The Secretaries of Labor and Education are
authorized to make available not to exceed $20,000 and $15,000,
respectively, from funds available for salaries and expenses
under titles I and III, respectively, for official reception
and representation expenses; the Director of the Federal
Mediation and Conciliation Service is authorized to make
available for official reception and representation expenses
not to exceed $2,500 from the funds available for ``Salaries
and expenses, Federal Mediation and Conciliation Service''; and
the Chairman of the National Mediation Board is authorized to
make available for official reception and representation
expenses not to exceed $2,500 from funds available for
``Salaries and expenses, National Mediation Board''.
Sec. 505. Notwithstanding any other provision of this Act,
no funds appropriated under this Act shall be used to carry out
any program of distributing sterile needles or syringes for the
hypodermic injection of any illegal drug.
Sec. 506. (a) It is the sense of the Congress that, to the
greatest extent practicable, all equipment and products
purchased with funds made available in this Act should be
American-made.
(b) In providing financial assistance to, or entering into
any contract with, any entity using funds made available in
this Act, the head of each Federal agency, to the greatest
extent practicable, shall provide to such entity a notice
describing the statement made in subsection (a) by the
Congress.
(c) If it has been finally determined by a court or Federal
agency that any person intentionally affixed a label bearing a
``Made in America'' inscription, or any inscription with the
same meaning, to any product sold in or shipped to the United
States that is not made in the United States, the person shall
be ineligible to receive any contract or subcontract made with
funds made available in this Act, pursuant to the debarment,
suspension, and ineligibility procedures described in sections
9.400 through 9.409 of title 48, Code of Federal Regulations.
Sec. 507. When issuing statements, press releases, requests
for proposals, bid solicitations and other documents describing
projects or programs funded in whole or in part with Federal
money, all grantees receiving Federal funds included in this
Act, including but not limited to State and local governments
and recipients of Federal research grants, shall clearly state:
(1) the percentage of the total costs of the program or project
which will be financed with Federal money; (2) the dollar
amount of Federal funds for the project or program; and (3)
percentage and dollar amount of the total costs of the project
or program that will be financed by non-governmental sources.
Sec. 508. (a) None of the funds appropriated under this
Act, and none of the funds in any trust fund to which funds are
appropriated under this Act, shall be expended for any
abortion.
(b) None of the funds appropriated under this Act, and none
of the funds in any trust fund to which funds are appropriated
under this Act, shall be expended for health benefits coverage
that includes coverage of abortion.
(c) The term ``health benefits coverage'' means the package
of services covered by a managed care provider or organization
pursuant to a contract or other arrangement.
Sec. 509. (a) The limitations established in the preceding
section shall not apply to an abortion--
(1) if the pregnancy is the result of an act of
rape or incest; or
(2) in the case where a woman suffers from a
physical disorder, physical injury, or physical
illness, including a life-endangering physical
condition caused by or arising from the pregnancy
itself, that would, as certified by a physician, place
the woman in danger of death unless an abortion is
performed.
(b) Nothing in the preceding section shall be construed as
prohibiting the expenditure by a State, locality, entity, or
private person of State, local, or private funds (other than a
State's or locality's contribution of Medicaid matching funds).
(c) Nothing in the preceding section shall be construed as
restricting the ability of any managed care provider from
offering abortion coverage or the ability of a State or
locality to contract separately with such a provider for such
coverage with State funds (other than a State's or locality's
contribution of Medicaid matching funds).
Sec. 510. (a) None of the funds made available in this Act
may be used for--
(1) the creation of a human embryo or embryos for
research purposes; or
(2) research in which a human embryo or embryos are
destroyed, discarded, or knowingly subjected to risk of
injury or death greater than that allowed for research
on fetuses in utero under 45 CFR 46.208(a)(2) and
section 498(b) of the Public Health Service Act (42
U.S.C. 289g(b)).
(b) For purposes of this section, the term ``human embryo
or embryos'' includes any organism, not protected as a human
subject under 45 CFR 46 as of the date of the enactment of this
Act, that is derived by fertilization, parthenogenesis,
cloning, or any other means from one or more human gametes or
human diploid cells.
Sec. 511. (a) None of the funds made available in this Act
may be used for any activity that promotes the legalization of
any drug or other substance included in schedule I of the
schedules of controlled substances established by section 202
of the Controlled Substances Act (21 U.S.C. 812).
(b) The limitation in subsection (a) shall not apply when
there is significant medical evidence of a therapeutic
advantage to the use of such drug or other substance or that
federally sponsored clinical trials are being conducted to
determine therapeutic advantage.
Sec. 512. None of the funds made available in this Act may
be obligated or expended to enter into or renew a contract with
an entity if--
(1) such entity is otherwise a contractor with the
United States and is subject to the requirement in
section 4212(d) of title 38, United States Code,
regarding submission of an annual report to the
Secretary of Labor concerning employment of certain
veterans; and
(2) such entity has not submitted a report as
required by that section for the most recent year for
which such requirement was applicable to such entity.
Sec. 513. (a) Section 403(a)(5)(H)(iii) of the Social
Security Act (42 U.S.C. 603(a)(5)(H)(iii)) is amended by
striking ``2001'' and inserting ``2005''.
(b) Section 403(a)(5)(H) of such Act (42 U.S.C.
603(a)(5)(G)) is amended by adding at the end the following:
``(iv) Interim report.--Not later
than January 1, 2002, the Secretary
shall submit to the Congress an interim
report on the evaluations referred to
in clause (i).''.
Sec. 514. None of the funds made available in this Act may
be used to promulgate or adopt any final standard under section
1173(b) of the Social Security Act (42 U.S.C. 1320d-2(b))
providing for, or providing for the assignment of, a unique
health identifier for an individual (except in an individual's
capacity as an employer or a health care provider), until
legislation is enacted specifically approving the standard.
Sec. 515. Section 410(b) of The Ticket to Work and Work
Incentives Improvement Act of 1999 (Public Law 106-170) is
amended by striking ``2009'' both places it appears and
inserting ``2001''.
Sec. 516. Part B of title III of the Public Health Services
Act (42 U.S.C. 243 et seq.) is amended by inserting before
section 318 the following section:
``human papillomavirus
``Sec. 317P. (a) Surveillance.--
``(1) In general.--The Secretary, acting through
the Centers for Disease Control and Prevention, shall--
``(A) enter into cooperative agreements
with States and other entities to conduct
sentinel surveillance or other special studies
that would determine the prevalence in various
age groups and populations of specific types of
human papillomavirus (referred to in this
section as `HPV') in different sites in various
regions of the United States, through
collection of special specimens for HPV using a
variety of laboratory-based testing and
diagnostic tools; and
``(B) develop and analyze data from the HPV
sentinel surveillance system described in
subparagraph (A).
``(2) Report.--The Secretary shall make a progress
report to the Congress with respect to paragraph (1) no
later than one year after the effective date of this
section.
``(b) Prevention Activities; Education Program.--
``(1) In general.--The Secretary, acting through
the Centers for Disease Control and Prevention, shall
conduct prevention research on HPV, including--
``(A) behavioral and other research on the
impact of HPV-related diagnosis on individuals;
``(B) formative research to assist with the
development of educational messages and
information for the public, for patients, and
for their partners about HPV;
``(C) surveys of physician and public
knowledge, attitudes, and practices about
genital HPV infection; and
``(D) upon the completion of and based on
the findings under subparagraphs (A) through
(C), develop and disseminate educational
materials for the public and health care
providers regarding HPV and its impact and
prevention.
``(2) Report; final proposal.--The Secretary shall
make a progress report to the Congress with respect to
paragraph (1) not later than one year after the
effective date of this section, and shall develop a
final report not later than three years after such
effective date, including a detailed summary of the
significant findings and problems and the best
strategies to prevent future infections, based on
available science.
``(c) HPV Education and Prevention.--
``(1) In general.--The Secretary shall prepare and
distribute educational materials for health care
providers and the public that include information on
HPV. Such materials shall address--
``(A) modes of transmission;
``(B) consequences of infection, including
the link between HPV and cervical cancer;
``(C) the available scientific evidence on
the effectiveness or lack of effectiveness of
condoms in preventing infection with HPV; and
``(D) the importance of regular Pap smears,
and other diagnostics for early intervention
and prevention of cervical cancer purposes in
preventing cervical cancer.
``(2) Medically accurate information.--Educational
material under paragraph (1), and all other relevant
educational and prevention materials prepared and
printed from this date forward for the public and
health care providers by the Secretary (including
materials prepared through the Food and Drug
Administration, the Centers for Disease Control and
Prevention, and the Health Resources and Services
Administration), or by contractors, grantees, or
subgrantees thereof, that are specifically designed to
address STDs including HPV shall contain medically
accurate information regarding the effectiveness or
lack of effectiveness of condoms in preventing the STD
the materials are designed to address. Such requirement
only applies to materials mass produced for the public
and health care providers, and not to routine
communications.''.
SEC. 4. LABELING OF CONDOMS.
The Secretary of Health and Human Services shall
reexamine existing condom labels that are authorized pursuant
to the Federal Food, Drug, and Cosmetic Act to determine
whether the labels are medically accurate regarding the overall
effectiveness or lack of effectiveness of condoms in preventing
sexually transmitted diseases, including HPV.
Sec. 517. Section 403(o) of the Food, Drug, and Cosmetic
Act (21 U.S.C. 343(o)) is repealed. Subsections (c) and (d) of
section 4 of the Saccharin Study and Labeling Act are repealed.
Sec. 518. (a) Title VIII of the Social Security Act is
amended by inserting after section 810 (42 U.S.C. 1010) the
following new section:
``SEC. 810A. OPTIONAL FEDERAL ADMINISTRATION OF STATE RECOGNITION
PAYMENTS.
``(a) In General.--The Commissioner of Social Security may
enter into an agreement with any State (or political
subdivision thereof) that provides cash payments on a regular
basis to individuals entitled to benefits under this title
under which the Commissioner of Social Security shall make such
payments on behalf of such State (or subdivision).
``(b) Agreement Terms.--
``(1) In general.--Such agreement shall include
such terms as the Commissioner of Social Security finds
necessary to achieve efficient and effective
administration of both this title and the State
program.
``(2) Financial terms.--Such agreement shall
provide for the State to pay the Commissioner of Social
Security, at such times and in such installments as the
parties may specify--
``(A) an amount equal to the expenditures
made by the Commissioner of Social Security
pursuant to such agreement as payments to
individuals on behalf of such State; and
``(B) an administration fee to reimburse
the administrative expenses incurred by the
Commissioner of Social Security in making
payments to individuals on behalf of the State.
``(c) Special Disposition of Administration Fees.--
Administration fees, upon collection, shall be credited to a
special fund established in the Treasury of the United States
for State recognition payments for certain World War II
veterans. The amounts so credited, to the extent and in the
amounts provided in advance in appropriations Acts, shall be
available to defray expenses incurred in carrying out this
title.''.
(b) Conforming Amendments.--
(1) The Table of Contents of title VIII of the
Social Security Act is amended by inserting after
``Sec. 810. Other administrative provisions.'' the
following:
``Sec. 810A. Optional federal administration of State recognition
payments.''.
(2) Section 1129A(e) of the Social Security (42
U.S.C. 1320a-8a(e)) is amended--
(A) by inserting ``VIII or'' after
``benefits under'';
(B) by inserting ``810A or'' after
``agreement under section'';
(C) by inserting ``1010A or'' before
``1382(e)(a)''; and
(D) by inserting ``, as the case may be''
immediately before the period.
Sec. 519. (a) In General.--Section 1612(a)(1) of the Social
Security Act (42 U.S.C. 1382(a) is amended--
(1) in subparagraph (A), by inserting ``but without
the application of section 210(j)(3)'' immediately
before the semicolon; and
(2) in subparagraph (B), by--
(A) striking ``and the last'' and inserting
``the last'', and
(B) inserting ``, and section 210(j)(3)''
after ``subsection (a)''.
Sec. 520. Amounts made available under this Act for the
administrative and related expenses for departmental management
for the Department of Labor, the Department of Health and Human
Services, and the Department of Education shall be reduced on a
pro rata basis by $25,000,000: Provided, That this provision
shall not apply to the Food and Drug Administration and the
Indian Health Service.
TITLE VI--ASSETS FOR INDEPENDENCE
SECTION 601. SHORT TITLE.
That this title may be cited as the ``Assets for
Independence Act Amendments of 2000''.
SEC. 602. MATCHING CONTRIBUTIONS UNAVAILABLE FOR EMERGENCY
WITHDRAWALS.
Section 404(5)(A)(v) of the Assets for Independence Act (42
U.S.C. 604 note) is amended by striking ``, or enabling the
eligible individual to make an emergency withdrawal''.
SEC. 603. ADDITIONAL QUALIFIED ENTITIES.
Section 404(7)(A) of the Assets for Independence Act (42
U.S.C. 604 note) is amended--
(1) in clause (i), by striking ``or'' at the end
thereof;
(2) in clause (ii), by striking the period at the
end and inserting ``; or''; and
(3) by adding at the end the following new clause:
``(iii) an entity that--
``(I) is--
``(aa) a credit
union designated as a
low-income credit union
by the National Credit
Union Administration
(NCUA); or
``(bb) an
organization designated
as a community
development financial
institution by the
Secretary of the
Treasury (or the
Community Development
Financial Institutions
Fund); and
``(II) can demonstrate a
collaborative relationship with
a local community-based
organization whose activities
are designed to address poverty
in the community and the needs
of community members for
economic independence and
stability.''.
SEC. 604. HOME PURCHASE COSTS.
Section 404(8)(B)(i) of the Assets for Independence Act (42
U.S.C. 604 note) is amended by striking ``100'' and inserting
``120''.
SEC. 605. INCREASED SET-ASIDE FOR ECONOMIC LITERACY TRAINING AND
ADMINISTRATIVE COSTS.
Section 407(c)(3) of the Assets for Independence Act (42
U.S.C. 604 note) is amended--
(1) by striking ``9.5'' and inserting ``15''; and
(2) by inserting after the first sentence the
following: ``Of the total amount specified in this
paragraph, not more than 7.5 percent shall be used for
administrative functions under paragraph (1)(C),
including program management, reporting requirements,
recruitment and enrollment of individuals, and
monitoring. The remainder of the total amount specified
in this paragraph (not including the amount specified
for use for the purposes described in paragraph (1)(D))
shall be used for nonadministrative functions described
in paragraph (1)(A), including case management,
budgeting, economic literacy, and credit counseling. If
the cost of nonadministrative functions described in
paragraph (1)(A) is less than 5.5 percent of the total
amount specified in this paragraph, such excess funds
may be used for administrative functions.''.
SEC. 606. ALTERNATIVE ELIGIBILITY CRITERIA.
Section 408(a)(1) of the Assets for Independence Act (42
U.S.C. 604 note) is amended by striking ``does not exceed'' and
inserting ``is equal to or less than 200 percent of the poverty
line (as determined by the Office of Management and Budget)
or''.
SEC. 607. REVISED ANNUAL PROGRESS REPORT DEADLINE.
(a) In General.--Section 412(c) of the Assets for
Independence Act (42 U.S.C. 604 note) is amended by striking
``calendar'' and inserting ``project''.
(b) Transitional Deadline.--Notwithstanding the amendment
made by subsection (a), the submission of the initial report of
a qualified entity under section 412(c) shall not be required
prior to the date that is 90 days after the date of enactment
of this title.
SEC. 608. REVISED INTERIM EVALUATION REPORT DEADLINE.
(a) In General.--Section 414(d)(1) of the Assets for
Independence Act (42 U.S.C. 604 note) is amended by striking
``calendar'' and inserting ``project''.
(b) Transitional Deadline.--Notwithstanding the amendment
made by subsection (a), the submission of the initial interim
report of the Secretary under section 412(c) shall not be
required prior to the date that is 90 days after the date of
enactment of this title.
SEC. 609. INCREASED APPROPRIATIONS FOR EVALUATION EXPENSES.
Subsection (e) of section 414 of the Assets for
Independence Act (42 U.S.C. 604 note) is amended to read as
follows:
``(e) Evaluation Expenses.--Of the amount appropriated
under section 416 for a fiscal year, the Secretary may expend
not more than $500,000 for such fiscal year to carry out the
objectives of this section.''.
SEC. 610. NO REDUCTION IN BENEFITS.
Section 415 of the Assets for Independence Act (42 U.S.C.
604 note) is amended to read as follows:
``SEC. 415. NO REDUCTION IN BENEFITS.
``Notwithstanding any other provision of Federal law (other
than the Internal Revenue Code of 1986) that requires
consideration of 1 or more financial circumstances of an
individual, for the purpose of determining eligibility to
receive, or the amount of, any assistance or benefit authorized
by such law to be provided to or for the benefit of such
individual, funds (including interest accruing) in an
individual development account under this Act shall be
disregarded for such purpose with respect to any period during
which such individual maintains or makes contributions into
such an account.''.
TITLE VII--PHYSICAL EDUCATION FOR PROGRESS ACT
Sec. 701. Physical Education for Progress. Title X of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 8001
et seq.) is amended by adding at the end the following:
``PART L--PHYSICAL EDUCATION FOR PROGRESS
``SEC. 10999A. SHORT TITLE.
``This part may be cited as the `Physical Education for
Progress Act'.
``SEC. 10999B. PURPOSE.
``The purpose of this part is to award grants and contracts
to local educational agencies to enable the local educational
agencies to initiate, expand and improve physical education
programs for all kindergarten through 12th grade students.
``SEC. 10999C. FINDINGS.
``Congress makes the following findings:
``(1) Physical education is essential to the
development of growing children.
``(2) Physical education helps improve the overall
health of children by improving their cardiovascular
endurance, muscular strength and power, and
flexibility, and by enhancing weight regulation, bone
development, posture, skillful moving, active lifestyle
habits, and constructive use of leisure time.
``(3) Physical education helps improve the self
esteem, interpersonal relationships, responsible
behavior, and independence of children.
``(4) Children who participate in high quality
daily physical education programs tend to be more
healthy and physically fit.
``(5) The percentage of young people who are
overweight has more than doubled in the 30 years
preceding 1999.
``(6) Low levels of activity contribute to the high
prevalence of obesity among children in the United
States.
``(7) Obesity related diseases cost the United
States economy more than $100,000,000,000 every year.
``(8) Inactivity and poor diet cause at least
300,000 deaths a year in the United States.
``(9) Physically fit adults have significantly
reduced risk factors for heart attacks and stroke.
``(10) Children are not as active as they should be
and fewer than 1 in 4 children get 20 minutes of
vigorous activity every day of the week.
``(11) The Surgeon General's 1996 Report on
Physical Activity and Health, and the Centers for
Disease Control and Prevention, recommend daily
physical education for all students in kindergarten
through grade 12.
``(12) Twelve years after Congress passed House
Concurrent Resolution 97, 100th Congress, agreed to
December 11, 1987, encouraging State and local
governments and local educational agencies to provide
high quality daily physical education programs for all
children in kindergarten through grade 12, little
progress has been made.
``(13) Every student in our Nation's schools, from
kindergarten through grade 12, should have the
opportunity to participate in quality physical
education. It is the unique role of quality physical
education programs to develop the health-related
fitness, physical competence, and cognitive
understanding about physical activity for all students
so that the students can adopt healthy and physically
active lifestyles.
``SEC. 10999D. PROGRAM AUTHORIZED.
``The Secretary is authorized to award grants to, and enter
into contracts with, local educational agencies to pay the
Federal share of the costs of initiating, expanding, and
improving physical education programs for kindergarten through
grade 12 students by--
``(1) providing equipment and support to enable
students to actively participate in physical education
activities; and
``(2) providing funds for staff and teacher
training and education.
``SEC. 10999E. APPLICATIONS; PROGRAM ELEMENTS.
``(a) Applications.--Each local educational agency desiring
a grant or contract under this part shall submit to the
Secretary an application that contains a plan to initiate,
expand, or improve physical education programs in the schools
served by the agency in order to make progress toward meeting
State standards for physical education.
``(b) Program Elements.--A physical education program
described in any application submitted under subsection (a) may
provide--
``(1) fitness education and assessment to help
children understand, improve, or maintain their
physical well-being;
``(2) instruction in a variety of motor skills and
physical activities designed to enhance the physical,
mental, and social or emotional development of every
child;
``(3) development of cognitive concepts about motor
skill and physical fitness that support a lifelong
healthy lifestyle;
``(4) opportunities to develop positive social and
cooperative skills through physical activity
participation;
``(5) instruction in healthy eating habits and good
nutrition; and
``(6) teachers of physical education the
opportunity for professional development to stay
abreast of the latest research, issues, and trends in
the field of physical education.
``(c) Special Rule.--For the purpose of this part,
extracurricular activities such as team sports and Reserve
Officers' Training Corps (ROTC) program activities shall not be
considered as part of the curriculum of a physical education
program assisted under this part.
``SEC. 10999F. PROPORTIONALITY.
``The Secretary shall ensure that grants awarded and
contracts entered into under this part shall be equitably
distributed between local educational agencies serving urban
and rural areas, and between local educational agencies serving
large and small numbers of students.
``SEC. 10999G. PRIVATE SCHOOL STUDENTS AND HOME-SCHOOLED STUDENTS.
``An application for funds under this part may provide for
the participation, in the activities funded under this part,
of--
``(1) homeschooled children, and their parents and
teachers; or
``(2) children enrolled in private nonprofit
elementary schools or secondary schools, and their
parents and teachers.
``SEC. 10999H. REPORT REQUIRED FOR CONTINUED FUNDING.
``As a condition to continue to receive grant or contract
funding after the first year of a multiyear grant or contract
under this part, the administrator of the grant or contract for
the local educational agency shall submit to the Secretary an
annual report that describes the activities conducted during
the preceding year and demonstrates that progress has been made
toward meeting State standards for physical education.
``SEC. 10999I. REPORT TO CONGRESS.
``The Secretary shall submit a report to Congress not later
than June 1, 2003, that describes the programs assisted under
this part, documents the success of such programs in improving
physical fitness, and makes such recommendations as the
Secretary determines appropriate for the continuation and
improvement of the programs assisted under this part.
``SEC. 10999J. ADMINISTRATIVE COSTS.
``Not more than 5 percent of the grant or contract funds
made available to a local educational agency under this part
for any fiscal year may be used for administrative costs.
``SEC. 10999K. FEDERAL SHARE; SUPPLEMENT NOT SUPPLANT.
``(a) Federal Share.--The Federal share under this part may
not exceed--
``(1) 90 percent of the total cost of a project for
the first year for which the project receives
assistance under this part; and
``(2) 75 percent of such cost for the second and
each subsequent such year.
``(b) Supplement not Supplant.--Funds made available under
this part shall be used to supplement and not supplant other
Federal, State and local funds available for physical education
activities.
``SEC. 10999L. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated $30,000,000 for
fiscal year 2001, $70,000,000 for fiscal year 2002, and
$100,000,000 for each of the fiscal years 2003 through 2005, to
carry out this part. Such funds shall remain available until
expended.''.
TITLE VIII--EARLY LEARNING OPPORTUNITIES
SEC. 801. SHORT TITLE; FINDINGS.
(a) Short Title.--This title may be cited as the ``Early
Learning Opportunities Act''.
(b) Findings.--Congress finds that--
(1) medical research demonstrates that adequate
stimulation of a young child's brain between birth and
age 5 is critical to the physical development of the
young child's brain;
(2) parents are the most significant and effective
teachers of their children, and they alone are
responsible for choosing the best early learning
opportunities for their child;
(3) parent education and parent involvement are
critical to the success of any early learning program
or activity;
(4) the more intensively parents are involved in
their child's early learning, the greater the cognitive
and noncognitive benefits to their children;
(5) many parents have difficulty finding the
information and support the parents seek to help their
children grow to their full potential;
(6) each day approximately 13,000,000 young
children, including 6,000,000 infants or toddlers,
spend some or all of their day being cared for by
someone other than their parents;
(7) quality early learning programs, including
those designed to promote effective parenting, can
increase the literacy rate, the secondary school
graduation rate, the employment rate, and the college
enrollment rate for children who have participated in
voluntary early learning programs and activities;
(8) early childhood interventions can yield
substantial advantages to participants in terms of
emotional and cognitive development, education,
economic well-being, and health, with the latter 2
advantages applying to the children's families as well;
(9) participation in quality early learning
programs, including those designed to promote effective
parenting, can decrease the future incidence of teenage
pregnancy, welfare dependency, at-risk behaviors, and
juvenile delinquency for children;
(10) several cost-benefit analysis studies indicate
that for each $1 invested in quality early learning
programs, the Federal Government can save over $5 by
reducing the number of children and families who
participate in Federal Government programs like special
education and welfare;
(11) for children placed in the care of others
during the workday, the low salaries paid to the child
care staff, the lack of career progression for the
staff, and the lack of child development specialists
involved in early learning and child care programs,
make it difficult to attract and retain the quality of
staff necessary for a positive early learning
experience;
(12) Federal Government support for early learning
has primarily focused on out-of-home care programs like
those established under the Head Start Act, the Child
Care and Development Block Grant of 1990, and part C of
the Individuals with Disabilities Education Act, and
these programs--
(A) serve far fewer than half of all
eligible children;
(B) are not primarily designed to provide
support for parents who care for their young
children in the home; and
(C) lack a means of coordinating early
learning opportunities in each community; and
(13) by helping communities increase, expand, and
better coordinate early learning opportunities for
children and their families, the productivity and
creativity of future generations will be improved, and
the Nation will be prepared for continued leadership in
the 21st century.
SEC. 802. PURPOSES.
The purposes of this title are--
(1) to increase the availability of voluntary
programs, services, and activities that support early
childhood development, increase parent effectiveness,
and promote the learning readiness of young children so
that young children enter school ready to learn;
(2) to support parents, child care providers, and
caregivers who want to incorporate early learning
activities into the daily lives of young children;
(3) to remove barriers to the provision of an
accessible system of early childhood learning programs
in communities throughout the United States;
(4) to increase the availability and affordability
of professional development activities and compensation
for caregivers and child care providers; and
(5) to facilitate the development of community-
based systems of collaborative service delivery models
characterized by resource sharing, linkages between
appropriate supports, and local planning for services.
SEC. 803. DEFINITIONS.
In this title:
(1) Caregiver.--The term ``caregiver'' means an
individual, including a relative, neighbor, or family
friend, who regularly or frequently provides care, with
or without compensation, for a child for whom the
individual is not the parent.
(2) Child care provider.--The term ``child care
provider'' means a provider of non-residential child
care services (including center-based, family-based,
and in-home child care services) for compensation who
or that is legally operating under State law, and
complies with applicable State and local requirements
for the provision of child care services.
(3) Early learning.--The term ``early learning'',
used with respect to a program or activity, means
learning designed to facilitate the development of
cognitive, language, motor, and social-emotional skills
for, and to promote learning readiness in, young
children.
(4) Early learning program.--The term ``early
learning program'' means--
(A) a program of services or activities
that helps parents, caregivers, and child care
providers incorporate early learning into the
daily lives of young children; or
(B) a program that directly provides early
learning to young children.
(5) Indian tribe.--The term ``Indian tribe'' has
the meaning given the term in section 4 of the Indian
Self-Determination and Education Assistance Act (25
U.S.C. 450b).
(6) Local council.--The term ``Local Council''
means a Local Council established or designated under
section 814(a) that serves one or more localities.
(7) Locality.--The term ``locality'' means a city,
county, borough, township, or area served by another
general purpose unit of local government, an Indian
tribe, a Regional Corporation, or a Native Hawaiian
entity.
(8) Parent.--The term ``parent'' means a biological
parent, an adoptive parent, a stepparent, a foster
parent, or a legal guardian of, or a person standing in
loco parentis to, a child.
(9) Poverty line.--The term ``poverty line'' means
the poverty line (as defined by the Office of
Management and Budget, and revised annually in
accordance with section 673(2) of the Community
Services Block Grant Act (42 U.S.C. 9902(2)))
applicable to a family of the size involved.
(10) Regional corporation.--The term ``Regional
Corporation'' means an entity listed in section
419(4)(B) of the Social Security Act (42 U.S.C.
619(4)(B)).
(11) Secretary.--The term ``Secretary'' means the
Secretary of Health and Human Services.
(12) State.--The term ``State'' means each of the
several States of the United States, the District of
Columbia, and the Commonwealth of Puerto Rico.
(13) Training.--The term ``training'' means
instruction in early learning that--
(A) is required for certification under
State and local laws, regulations, and
policies;
(B) is required to receive a nationally or
State recognized credential or its equivalent;
(C) is received in a postsecondary
education program focused on early learning or
early childhood development in which the
individual is enrolled; or
(D) is provided, certified, or sponsored by
an organization that is recognized for its
expertise in promoting early learning or early
childhood development.
(14) Young child.--The term ``young child'' means
any child from birth to the age of mandatory school
attendance in the State where the child resides.
SEC. 804. PROHIBITIONS.
(a) Participation Not Required.--No person, including a
parent, shall be required to participate in any program of
early childhood education, early learning, parent education, or
developmental screening pursuant to the provisions of this
title.
(b) Rights of Parents.--Nothing in this title shall be
construed to affect the rights of parents otherwise established
in Federal, State, or local law.
(c) Particular Methods or Settings.--No entity that
receives funds under this title shall be required to provide
services under this title through a particular instructional
method or in a particular instructional setting to comply with
this title.
(d) Nonduplication.--No funds provided under this title
shall be used to carry out an activity funded under another
provision of law providing for Federal child care or early
learning programs, unless an expansion of such activity is
identified in the local needs assessment and performance goals
under this title.
SEC. 805. AUTHORIZATION AND APPROPRIATION OF FUNDS.
There are authorized to be appropriated to the Department
of Health and Human Services to carry out this title--
(1) $750,000,000 for fiscal year 2001;
(2) $1,000,000,000 for fiscal year 2002;
(3) $1,500,000,000 for fiscal year 2003; and
(4) such sums as may be necessary for each of the
fiscal years 2004 and 2005.
SEC. 806. COORDINATION OF FEDERAL PROGRAMS.
(a) Coordination.--The Secretary and the Secretary of
Education shall develop mechanisms to resolve administrative
and programmatic conflicts between Federal programs that would
be a barrier to parents, caregivers, service providers, or
children related to the coordination of services and funding
for early learning programs.
(b) Use of Equipment and Supplies.--In the case of a
collaborative activity funded under this title and another
provision of law providing for Federal child care or early
learning programs, the use of equipment and nonconsumable
supplies purchased with funds made available under this title
or such provision shall not be restricted to children enrolled
or otherwise participating in the program carried out under
this title or such provision, during a period in which the
activity is predominately funded under this title or such
provision.
SEC. 807. PROGRAM AUTHORIZED.
(a) Grants.--From amounts appropriated under section 805
the Secretary shall award grants to States to enable the States
to award grants to Local Councils to pay the Federal share of
the cost of carrying out early learning programs in the
locality served by the Local Council.
(b) Federal Share.--
(1) In general.--The Federal share of the cost
described in subsections (a) and (e) shall be 85
percent for the first and second years of the grant, 80
percent for the third and fourth years of the grant,
and 75 percent for the fifth and subsequent years of
the grant.
(2) Non-federal share.--The non-Federal share of
the cost described in subsections (a) and (e) may be
contributed in cash or in kind, fairly evaluated,
including facilities, equipment, or services, which may
be provided from State or local public sources, or
through donations from private entities. For the
purposes of this paragraph the term ``facilities''
includes the use of facilities, but the term
``equipment'' means donated equipment and not the use
of equipment.
(c) Maintenance of Effort.--The Secretary shall not award a
grant under this title to any State unless the Secretary first
determines that the total expenditures by the State and its
political subdivisions to support early learning programs
(other than funds used to pay the non-Federal share under
subsection (b)(2)) for the fiscal year for which the
determination is made is equal to or greater than such
expenditures for the preceding fiscal year.
(d) Supplement Not Supplant.--Amounts received under this
title shall be used to supplement and not supplant other
Federal, State, and local public funds expended to promote
early learning.
(e) Special Rule.--If funds appropriated to carry out this
title are less than $150,000,000 for any fiscal year, the
Secretary shall award grants for the fiscal year directly to
Local Councils, on a competitive basis, to pay the Federal
share of the cost of carrying out early learning programs in
the locality served by the Local Council. In carrying out the
preceding sentence--
(1) subsection (c), subsections (b) and (c) of
section 810, and paragraphs (1), (2), and (3) of
section 811(a) shall not apply;
(2) State responsibilities described in section
811(d) shall be carried out by the Local Council with
regard to the locality;
(3) the Secretary shall provide such technical
assistance and monitoring as necessary to ensure that
the use of the funds by Local Councils and the
distribution of the funds to Local Councils are
consistent with this title; and
(4) subject to paragraph (1), the Secretary shall
assume the responsibilities of the Lead State Agency
under this title, as appropriate.
SEC. 808. USES OF FUNDS.
(a) In General.--Subject to section 810, grant funds under
this title shall be used to pay for developing, operating, or
enhancing voluntary early learning programs that are likely to
produce sustained gains in early learning.
(b) Limited Uses.--Subject to section 810, Lead State
Agencies and Local Councils shall ensure that funds made
available under this title to the agencies and Local Councils
are used for 3 or more of the following activities:
(1) Helping parents, caregivers, child care
providers, and educators increase their capacity to
facilitate the development of cognitive, language
comprehension, expressive language, social-emotional,
and motor skills, and promote learning readiness.
(2) Promoting effective parenting.
(3) Enhancing early childhood literacy.
(4) Developing linkages among early learning
programs within a community and between early learning
programs and health care services for young children.
(5) Increasing access to early learning
opportunities for young children with special needs,
including developmental delays, by facilitating
coordination with other programs serving such young
children.
(6) Increasing access to existing early learning
programs by expanding the days or times that the young
children are served, by expanding the number of young
children served, or by improving the affordability of
the programs for low-income families.
(7) Improving the quality of early learning
programs through professional development and training
activities, increased compensation, and recruitment and
retention incentives, for early learning providers.
(8) Removing ancillary barriers to early learning,
including transportation difficulties and absence of
programs during nontraditional work times.
(c) Requirements.--Each Lead State Agency designated under
section 810(c) and Local Councils receiving a grant under this
title shall ensure--
(1) that Local Councils described in section 814
work with local educational agencies to identify
cognitive, social, emotional, and motor developmental
abilities which are necessary to support children's
readiness for school;
(2) that the programs, services, and activities
assisted under this title will represent
developmentally appropriate steps toward the
acquisition of those abilities; and
(3) that the programs, services, and activities
assisted under this title collectively provide benefits
for children cared for in their own homes as well as
children placed in the care of others.
(d) Sliding Scale Payments.--States and Local Councils
receiving assistance under this title shall ensure that
programs, services, and activities assisted under this title
which customarily require a payment for such programs,
services, or activities, adjust the cost of such programs,
services, and activities provided to the individual or the
individual's child based on the individual's ability to pay.
SEC. 809. RESERVATIONS AND ALLOTMENTS.
(a) Reservation for Indian Tribes, Alaska Natives, and
Native Hawaiians.--The Secretary shall reserve 1 percent of the
total amount appropriated under section 805 for each fiscal
year, to be allotted to Indian tribes, Regional Corporations,
and Native Hawaiian entities, of which--
(1) 0.5 percent shall be available to Indian
tribes; and
(2) 0.5 percent shall be available to Regional
Corporations and Native Hawaiian entities.
(b) Allotments.--From the funds appropriated under this
title for each fiscal year that are not reserved under
subsection (a), the Secretary shall allot to each State the sum
of--
(1) an amount that bears the same ratio to 50
percent of such funds as the number of children 4 years
of age and younger in the State bears to the number of
such children in all States; and
(2) an amount that bears the same ratio to 50
percent of such funds as the number of children 4 years
of age and younger living in families with incomes
below the poverty line in the State bears to the number
of such children in all States.
(c) Minimum Allotment.--No State shall receive an allotment
under subsection (b) for a fiscal year in an amount that is
less than .40 percent of the total amount appropriated for the
fiscal year under this title.
(d) Availability of Funds.--Any portion of the allotment to
a State that is not expended for activities under this title in
the fiscal year for which the allotment is made shall remain
available to the State for 2 additional years, after which any
unexpended funds shall be returned to the Secretary. The
Secretary shall use the returned funds to carry out a
discretionary grant program for research-based early learning
demonstration projects.
(e) Data.--The Secretary shall make allotments under this
title on the basis of the most recent data available to the
Secretary.
SEC. 810. GRANT ADMINISTRATION.
(a) Federal Administrative Costs.--The Secretary may use
not more than 3 percent of the amount appropriated under
section 805 for a fiscal year to pay for the administrative
costs of carrying out this title, including the monitoring and
evaluation of State and local efforts.
(b) State Administrative Costs.--A State that receives a
grant under this title may use--
(1) not more than 2 percent of the funds made
available through the grant to carry out activities
designed to coordinate early learning programs on the
State level, including programs funded or operated by
the State educational agency, health, children and
family, and human service agencies, and any State-level
collaboration or coordination council involving early
learning and education, such as the entities funded
under section 640(a)(5) of the Head Start Act (42
U.S.C. 9835 (a)(5));
(2) not more than 2 percent of the funds made
available through the grant for the administrative
costs of carrying out the grant program and the costs
of reporting State and local efforts to the Secretary;
and
(3) not more than 3 percent of the funds made
available through the grant for training, technical
assistance, and wage incentives provided by the State
to Local Councils.
(c) Lead State Agency.--
(1) In general.--To be eligible to receive an
allotment under this title, the Governor of a State
shall appoint, after consultation with the leadership
of the State legislature, a Lead State Agency to carry
out the functions described in paragraph (2).
(2) Lead state agency.--
(A) Allocation of funds.--The Lead State
Agency described in paragraph (1) shall
allocate funds to Local Councils as described
in section 812.
(B) Functions of agency.--In addition to
allocating funds pursuant to subparagraph (A),
the Lead State Agency shall--
(i) advise and assist Local
Councils in the performance of their
duties under this title;
(ii) develop and submit the State
application;
(iii) evaluate and approve
applications submitted by Local
Councils under section 813;
(iv) ensure collaboration with
respect to assistance provided under
this title between the State agency
responsible for education and the State
agency responsible for children and
family services;
(v) prepare and submit to the
Secretary, an annual report on the
activities carried out in the State
under this title, which shall include a
statement describing how all funds
received under this title are expended
and documentation of the effects that
resources under this title have had
on--
(I) parental capacity to
improve learning readiness in
their young children;
(II) early childhood
literacy;
(III) linkages among early
learning programs;
(IV) linkages between early
learning programs and health
care services for young
children;
(V) access to early
learning activities for young
children with special needs;
(VI) access to existing
early learning programs through
expansion of the days or times
that children are served;
(VII) access to existing
early learning programs through
expansion of the number of
young children served;
(VIII) access to and
affordability of existing early
learning programs for low-
income families;
(IX) the quality of early
learning programs resulting
from professional development,
and recruitment and retention
incentives for caregivers; and
(X) removal of ancillary
barriers to early learning,
including transportation
difficulties and absence of
programs during nontraditional
work times; and
(vi) ensure that training and
research is made available to Local
Councils and that such training and
research reflects the latest available
brain development and early childhood
development research related to early
learning.
SEC. 811. STATE REQUIREMENTS.
(a) Eligibility.--To be eligible for a grant under this
title, a State shall--
(1) ensure that funds received by the State under
this title shall be subject to appropriation by the
State legislature, consistent with the terms and
conditions required under State law;
(2) designate a Lead State Agency under section
810(c) to administer and monitor the grant and ensure
State-level coordination of early learning programs;
(3) submit to the Secretary an application at such
time, in such manner, and accompanied by such
information as the Secretary may require;
(4) ensure that funds made available under this
title are distributed on a competitive basis throughout
the State to Local Councils serving rural, urban, and
suburban areas of the State; and
(5) assist the Secretary in developing mechanisms
to ensure that Local Councils receiving funds under
this title comply with the requirements of this title.
(b) State Preference.--In awarding grants to Local Councils
under this title, the State, to the maximum extent possible,
shall ensure that a broad variety of early learning programs
that provide a continuity of services across the age spectrum
assisted under this title are funded under this title, and
shall give preference to supporting--
(1) a Local Council that meets criteria, that are
specified by the State and approved by the Secretary,
for qualifying as serving an area of greatest need for
early learning programs; and
(2) a Local Council that demonstrates, in the
application submitted under section 813, the Local
Council's potential to increase collaboration as a
means of maximizing use of resources provided under
this title with other resources available for early
learning programs.
(c) Local Preference.--In awarding grants under this title,
Local Councils shall give preference to supporting--
(1) projects that demonstrate their potential to
collaborate as a means of maximizing use of resources
provided under this title with other resources
available for early learning programs;
(2) programs that provide a continuity of services
for young children across the age spectrum,
individually, or through community-based networks or
cooperative agreements; and
(3) programs that help parents and other caregivers
promote early learning with their young children.
(d) Performance Goals.--
(1) Assessments.--Based on information and data
received from Local Councils, and information and data
available through State resources, the State shall
biennially assess the needs and available resources
related to the provision of early learning programs
within the State.
(2) Performance goals.--Based on the analysis of
information described in paragraph (1), the State shall
establish measurable performance goals to be achieved
through activities assisted under this title.
(3) Requirement.--The State shall award grants to
Local Councils only for purposes that are consistent
with the performance goals established under paragraph
(2).
(4) Report.--The State shall report to the
Secretary annually regarding the State's progress
toward achieving the performance goals established in
paragraph (2) and any necessary modifications to those
goals, including the rationale for the modifications.
(5) Improvement plans.--If the Secretary
determines, based on the State report submitted under
paragraph (4), that the State is not making progress
toward achieving the performance goals described in
paragraph (2), then the State shall submit a
performance improvement plan to the Secretary, and
demonstrate reasonable progress in implementing such
plan, in order to remain eligible for funding under
this title.
SEC. 812. LOCAL ALLOCATIONS.
(a) In General.--The Lead State Agency shall allocate to
Local Councils in the State not less than 93 percent of the
funds provided to the State under this title for a fiscal year.
(b) Limitation.--The Lead State Agency shall allocate funds
provided under this title on the basis of the population of the
locality served by the Local Council.
SEC. 813. LOCAL APPLICATIONS.
(a) In General.--To be eligible to receive assistance under
this title, the Local Council shall submit an application to
the Lead State Agency at such time, in such manner, and
containing such information as the Lead State Agency may
require.
(b) Contents.--Each application submitted pursuant to
subsection (a) shall include a statement ensuring that the
local government entity, Indian tribe, Regional Corporation, or
Native Hawaiian entity has established or designated a Local
Council under section 814, and the Local Council has developed
a local plan for carrying out early learning programs under
this title that includes--
(1) a needs and resources assessment concerning
early learning services and a statement describing how
early learning programs will be funded consistent with
the assessment;
(2) a statement of how the Local Council will
ensure that early learning programs will meet the
performance goals reported by the Lead State Agency
under this title; and
(3) a description of how the Local Council will
form collaboratives among local youth, social service,
and educational providers to maximize resources and
concentrate efforts on areas of greatest need.
SEC. 814. LOCAL ADMINISTRATION.
(a) Local Council.--
(1) In general.--To be eligible to receive funds
under this title, a local government entity, Indian
tribe, Regional Corporation, or Native Hawaiian entity,
as appropriate, shall establish or designate a Local
Council, which shall be composed of--
(A) representatives of local agencies
directly affected by early learning programs
assisted under this title;
(B) parents;
(C) other individuals concerned with early
learning issues in the locality, such as
representative entities providing elementary
education, child care resource and referral
services, early learning opportunities, child
care, and health services; and
(D) other key community leaders.
(2) Designating existing entity.--If a local
government entity, Indian tribe, Regional Corporation,
or Native Hawaiian entity has, before the date of
enactment of the Early Learning Opportunities Act, a
Local Council or a regional entity that is comparable
to the Local Council described in paragraph (1), the
entity, tribe or corporation may designate the council
or entity as a Local Council under this title, and
shall be considered to have established a Local Council
in compliance with this subsection.
(3) Functions.--The Local Council shall be
responsible for preparing and submitting the
application described in section 813.
(b) Administration.--
(1) Administrative costs.--Not more than 3 percent
of the funds received by a Local Council under this
title shall be used to pay for the administrative costs
of the Local Council in carrying out this title.
(2) Fiscal agent.--A Local Council may designate
any entity, with a demonstrated capacity for
administering grants, that is affected by, or concerned
with, early learning issues, including the State, to
serve as fiscal agent for the administration of grant
funds received by the Local Council under this title.
TITLE IX--RURAL EDUCATION ACHIEVEMENT PROGRAM
SEC. 901. RURAL EDUCATION INITIATIVE.
Subpart 2 of part J of title X of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 8291 et seq.) is
amended to read as follows:
``Subpart 2--Rural Education Initiative
``SEC. 10971. SHORT TITLE.
``This subpart may be cited as the `Rural Education
Achievement Program'.
``SEC. 10972. PURPOSE.
``It is the purpose of this subpart to address the unique
needs of rural school districts that frequently--
``(1) lack the personnel and resources needed to
compete for Federal competitive grants; and
``(2) receive formula allocations in amounts too
small to be effective in meeting their intended
purposes.
``SEC. 10973. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this
subpart $62,500,000 for fiscal year 2001.
``SEC. 10974. FORMULA GRANT PROGRAM AUTHORIZED.
``(a) Alternative Uses.--
``(1) In general.--Notwithstanding any other
provision of law, an eligible local educational agency
may use the applicable funding, that the agency is
eligible to receive from the State educational agency
for a fiscal year, to carry out local activities
authorized in part A of title I, section 2210(b),
section 3134, or section 4116.
``(2) Notification.--An eligible local educational
agency shall notify the State educational agency of the
local educational agency's intention to use the
applicable funding in accordance with paragraph (1) not
later than a date that is established by the State
educational agency for the notification.
``(b) Eligibility.--A local educational agency shall be
eligible to use the applicable funding in accordance with
subsection (a) if--
``(1) the total number of students in average daily
attendance at all of the schools served by the local
educational agency is less than 600; and
``(2) all of the schools served by the local
educational agency are designated with a School Locale
Code of 7 or 8, as determined by the Secretary of
Education.
``(c) Applicable Funding.--In this section, the term
`applicable funding' means funds provided under each of titles
II, IV, and VI, except for funds made available under section
321 of the Department of Education Appropriations Act, 2001.
``(d) Disbursal.--Each State educational agency that
receives applicable funding for a fiscal year shall disburse
the applicable funding to local educational agencies for
alternative uses under this section for the fiscal year at the
same time that the State educational agency disburses the
applicable funding to local educational agencies that do not
intend to use the applicable funding for such alternative uses
for the fiscal year.
``(e) Supplement Not Supplant.--Funds made available under
this section shall be used to supplement and not supplant any
other State or local education funds.
``(f) Special Rule.--References in Federal law to funds for
the provisions of law set forth in subsection (c) may be
considered to be references to funds for this section.
``(g) Construction.--Nothing in this subpart shall be
construed to prohibit a local educational agency that enters
into cooperative arrangements with other local educational
agencies for the provision of special, compensatory, or other
education services pursuant to State law or a written agreement
from entering into similar arrangements for the use or the
coordination of the use of the funds made available under this
subpart.
``SEC. 10975. COMPETITIVE GRANT PROGRAM AUTHORIZED.
``(a) In General.--The Secretary is authorized to award
grants to eligible local educational agencies to enable the
local educational agencies to carry out local activities
authorized in part A of title I, section 2210(b), section 3134,
or section 4116.
``(b) Eligibility.--A local educational agency shall be
eligible to receive a grant under this section if--
``(1) the total number of students in average daily
attendance at all of the schools served by the local
educational agency is less than 600; and
``(2) all of the schools served by the local
educational agency are designated with a School Locale
Code of 7 or 8, as determined by the Secretary of
Education.
``(c) Amount.--
``(1) In general.--The Secretary shall award a
grant to a local educational agency under this section
for a fiscal year in an amount equal to the amount
determined under paragraph (2) for the fiscal year
minus the total amount received under the provisions of
law described under section 10974(c) for the fiscal
year.
``(2) Determination.--The amount referred to in
paragraph (1) is equal to $100 multiplied by the total
number of students in excess of 50 students that are in
average daily attendance at the schools served by the
local educational agency, plus $20,000, except that the
amount may not exceed $60,000.
``(3) Census determination.--
``(A) In general.--Each local educational
agency desiring a grant under this section
shall determine for each year the number of
kindergarten through grade 12 students in
average daily attendance at the schools served
by the local educational agency during the
period beginning or the first day of classes
and ending on December 1.
``(B) Submission.--Each local educational
agency shall submit the number described in
subparagraph (A) to the Secretary not later
than March 1 of each year.
``(4) Penalty.--If the Secretary determines that a
local educational agency has knowingly submitted false
information under paragraph (3) for the purpose of
gaining additional funds under this section, then the
local educational agency shall be fined an amount equal
to twice the difference between the amount the local
educational agency received under this section, and the
correct amount the local educational agency would have
received under this section if the agency had submitted
accurate information under paragraph (3).
``(d) Disbursal.--The Secretary shall disburse the funds
awarded to a local educational agency under this section for a
fiscal year not later than July 1 of that year.
``(e) Supplement Not Supplant.--Funds made available under
this section shall be used to supplement and not supplant any
other State or local education funds.
``SEC. 10976. ACCOUNTABILITY.
``(a) Academic Achievement.--
``(1) In general.--Each local educational agency
that uses or receives funds under section 10974 or
10975 for a fiscal year shall--
``(A) administer an assessment that is used
statewide and is consistent with the assessment
described in section 1111(b), to assess the
academic achievement of students in the schools
served by the local educational agency; or
``(B) in the case of a local educational
agency for which there is no statewide
assessment described in subparagraph (A),
administer a test, that is selected by the
local educational agency, to assess the
academic achievement of students in the schools
served by the local educational agency.
``(2) Special rule.--Each local educational agency
that uses or receives funds under section 10974 or
10975 shall use the same assessment or test described
in paragraph (1) for each year of participation in the
program carried out under such section.
``(b) State Educational Agency Determination Regarding
Continuing Participation.--Each State educational agency that
receives funding under the provisions of law described in
section 10974(c) shall--
``(1) after the third year that a local educational
agency in the State participates in a program
authorized under section 10974 or 10975 and on the
basis of the results of the assessments or tests
described in subsection (a), determine whether the
students served by the local educational agency
participating in the program performed better on the
assessments or tests after the third year of the
participation than the students performed on the
assessments or tests after the first year of the
participation;
``(2) permit only the local educational agencies
that participated in the program and served students
that performed better on the assessments or tests, as
described in paragraph (1), to continue to participate
in the program for an additional period of 3 years; and
``(3) prohibit the local educational agencies that
participated in the program and served students that
did not perform better on the assessments or tests, as
described in paragraph (1), from participating in the
program, for a period of 3 years from the date of the
determination.
``SEC. 10977. RATABLE REDUCTIONS IN CASE OF INSUFFICIENT
APPROPRIATIONS.
``(a) In General.--If the amount appropriated for any
fiscal year and made available for grants under this subpart is
insufficient to pay the full amount for which all agencies are
eligible under this subpart, the Secretary shall ratably reduce
each such amount.
``(b) Additional Amounts.--If additional funds become
available for making payments under paragraph (1) for such
fiscal year, payments that were reduced under subsection (a)
shall be increased on the same basis as such payments were
reduced.
``SEC. 10978. APPLICABILITY.
``Sections 10951 and 10952 shall not apply to this
subpart.''.
This Act may be cited as the ``Departments of Labor, Health
and Human Services, and Education, and Related Agencies
Appropriations Act, 2001''.
DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION, AND
RELATED AGENCIES APPROPRIATIONS
Following is explanatory language on H.R. 5656, as
introduced on December 14, 2000.
The conferees on H.R. 4577 agree with the matter included
in H.R. 5656 and enacted in this conference report by reference
and the following description. This bill was developed through
negotiations by the conferees on the differences in H.R. 4577.
References in the following description to the ``conference
agreement'' mean the matter included in the introduced bill
enacted by this conference report. References to the House bill
mean the House passed H.R. 4577. References to the Senate bill
or to the Senate amendment mean the Senate passed version of
H.R. 4577.
In implementing this agreement, the Departments and
agencies should comply with the language and instructions set
forth in House Report 106-645 and Senate Report 106-293.
In the case where the language and instructions
specifically address the allocation of funds, the Departments
and agencies are to follow the funding levels specified in the
Congressional budget justifications accompanying the fiscal
year 2001 budget or the underlying authorizing statute and
should give full consideration to all items, including items
allocating specific funding included in the House and Senate
reports. With respect to the provisions in the House and Senate
reports that specifically allocate funds each has been reviewed
and those that are jointly concurred in have been included in
this joint statement.
The conferees specifically endorse the provisions of the
House Report 105-205 directing ``* * * the Departments of
Labor, Health and Human Services, and Education and the Social
Security Administration and the Railroad Retirement Board to
submit operating plans with respect to discretionary
appropriations to the House and Senate Committees on
Appropriations. These plans, which are to be submitted within
30 days of the final passage of the bill, must be signed by the
respective Departmental Secretaries, the Social Security
Commissioner and the Chairman of the Railroad Retirement
Board.''
The conferees expect the Departments and agencies covered
by this directive to meet with the House and Senate Committees
as soon as possible after enactment of the bill to develop a
methodology to assure adequate and timely information on the
allocation of funds within accounts within this conference
report while minimizing the need for unnecessary and
duplicative submissions.
The Departments of Labor, Health and Human Services, and
Education, and Related Agencies Appropriations Act, 2001, put
in place by this bill, incorporates the following agreements of
the managers:
TITLE I--DEPARTMENT OF LABOR
Employment and Training Administration
Training and Employment Services
The conference agreement includes $5,670,805,000 for
training and employment services instead of $5,015,495,000 as
proposed by the House and $5,453,141,000 as proposed by the
Senate. Of the amount appropriated, $2,463,000,000 is an
advance appropriation for fiscal year 2002. The conference
agreement includes $1,400,000,000, which is the House level for
Job Corps, but eliminates the October 1, 2000 availability of
funds for hiring Business and Community Liaisons. The
conference agreement includes $15,000,000 for this purpose, but
the funds are made available on July 1, 2001, the normal
funding cycle for Job Corps operations.
The conference agreement includes $586,487 made available
for Job Corps operating expenses to be paid to the city of
Vergennes, Vermont in settlement of the city's claim.
The conference agreement includes $1,590,040,000 for the
Dislocated Worker program, as a step toward providing all
dislocated workers who want and need assistance the resources
to train for or find new jobs.
The conference agreement includes $1,102,965,000 for
Youth Activities. This increase will allow local communities to
address the reduction in the number of youth served in this
year's summer jobs program resulting from a shift to
comprehensive services, to establish new local youth councils,
and to implement other reforms to youth training activities and
services, all required under the Workforce Investment Act.
At the time the conferees acted on this bill, an increase
in the minimum wage had not yet been enacted by Congress. If
Congress enacts an increase in the minimum wage prior to the
beginning of program year 2001, which begins April 1, 2001 for
the youth activities grants, the conferees expect the
Administration to submit a supplemental request for the 2001
youth program as part of its fiscal year 2002 budget request.
The conferees intend that the number of program participants to
be served will not be decreased as a result of any minimum wage
increase.
The conference agreement includes $275,000,000 to expand
to more communities the Youth Opportunity Grants aimed at
increasing the long-term employment of youth who live in
empowerment zones, enterprise communities, and other high-
poverty areas.
The conference agreement includes $55,000,000 for the
Responsible Reintegration for Young Offenders initiative to
address youth offender issues. This new initiative involving
DOL, HHS, and DOJ, will build on work begun earlier.
The conference agreement includes language authorizing
the use of funds under the dislocated workers program for
projects that provide assistance to new entrants in the
workforce and incumbent workers as proposed by the Senate. The
conference agreement also includes language to waive a 10
percent limitation in the Workforce Investment Act with respect
to the use of discretionary funds to carry out demonstration
and pilot projects, multi-service projects and multi-state
projects with regard to dislocated workers and to waive certain
other provisions in that Act. The language is similar to that
in the Senate bill. The House bill contained no similar
provisions.
The conference agreement includes a citation to the Women
in Apprenticeship and Nontraditional Occupations Act as
proposed by the House. The Senate bill did not cite this Act.
The conferees direct the Department, within the funds
appropriated for fiscal year 2000 for National Emergency Grants
within the Dislocated Worker program, to respond to an
anticipated request by the State of Wisconsin for emergency
funds to address layoffs in the community of Wisconsin Rapids.
The conferees direct the Department, within the funds
appropriated for FY 2000 for National Emergency Grants within
the Dislocated Worker program, to provide in response to an
anticipated request by the State of North Carolina for $175,000
in emergency funds to address major layoffs in the community of
Gaston County.
With respect to the projects listed below for both the
Dislocated Worker program and the Pilots and Demonstrations
authority, the conferees acknowledge changes under the
Workforce Investment Act to develop and implement techniques
and approaches, and demonstrate the effectiveness of
specialized methods of addressing the employment and training
needs of individuals. The conferees encourage the Department to
ensure that these projects are coordinated with local Workforce
Investment Boards. The conferees also encourage the Department
of Labor to ensure that project performance is adequately
documented and evaluated. The conference agreement includes the
following amounts for the following projects and activities:
Dislocated workers
--$600,000 to develop and implement technology training
through the Resource Recovery Program--Campbellsville
University, TN;
--$500,000 for Workforce Development project to retrain
older incumbent workers for Montana workforce--Montana State
University, Billings;
--$1,600,000 to the Montana Tech Foundation for the
Northwest Regional Miner--Training and Research Facility--
Butte, Montana;
--$800,000 for the River Valley Machine Tool Technology
program to retrain displaced workers--Central Maine Technical
College;
--$1,400,000 for Coastal Enterprises Inc.'s New
Enterprise Initiative Fund (NEIF) to provide training for
dislocated workers to transition into new jobs--Maine;
--$650,000 for the Iowa Training Opportunities Program;
--$927,000 for the JobLinks Program;
--$50,000 for Clemson University to retrain tobacco
farmers;
--$185,000 for the Hawaii Department of Labor/Kauai
Cooperative Extension;
--$464,000 for High Tech Training--Maui, Hawaii;
--$861,000 for the Clayton College and State University
in Georgia for a virtual education and training project;
--$184,000 for the Adult Computer Skills Training
Initiative (ACSTI) through the Education and Research
Consortium of Western North Carolina, Inc.;
--$464,000 for the Bethel Native Corp.--Alaska; and
--$500,000 for the University of Alaska/Ketchikan
Shipyards training program for shipyard workers.
Pilots and demonstrations
--$1,275,000 for the Mott Community College Workforce
Development Institute for Manufacturing Simulation--access to
electronic library of technology, developed as part of DOL's
America's Learning Exchange--Michigan;
--$1,000,000 for Jobs for America's Graduates, School-to-
Work projects for at-risk young people;
--$500,000 to the University of Mississippi for Workforce
training to support real time captioning initiatives for the
hearing disabled--Oxford, Mississippi;
--$750,000 for Technology Tool Kit to train at-risk young
people in occupations related to the use of automated
identification technology--Mississippi Valley State University;
--$850,000 to train Northern Maine's workforce for
employment in the metal trades--Northern Maine Technical
College;
--$691,000 to the San Diego State University Foundation
to implement innovative high-tech training programs;
--$900,000 for the South Dakota Intertribal Bison
Cooperative;
--$700,000 for the Greater Columbus Ohio Chamber of
Commerce Career Academies program--project to design and test
programs in partnership with workforce development system;
--$250,000 for Job Corps of North Dakota for the
Fellowship Executive Training Program;
--$276,000 to the City of Monrovia, CA to train youth in
information technologies;
--$1,059,000 to the Californina State Polytechnic
University in Pomona, CA to develop technology training
programs;
--$921,000 to Precision Manufacturing Institute in
Meadville, PA for training in the latest technology in the
tooling and machine trades;
--$921,000 to Enterprise State Junior College in
Enterprise, AL for technology training in the College's Center
for Higher Technology;
--$369,000 to Employment Solutions in Lexington, KY;
--$855,000 to Florida Community College at Jacksonville
for aircraft maintenance training at the Aviation/Aerospace
Center of Excellence;
--$92,000 to the Chesapeake Center for Youth Development
in Baltimore, MD for serving at-risk youth;
--$276,000 to Benedictine Programs and Services in
Ridgely, MD for serving at-risk youth through the Industrial
Training Center;
--$92,000 to Green Thumb, Inc. to conduct a program for
low-income elders to develop entrepreneurial skills that
utilize e-commerce and IT in Wadena, MN;
--$500,000 for Kirkwood Community College and ACT, Inc.
for workforce skills development in Iowa;
--$500,000 for SMART Partner programs high-tech skills
training through establishment of the Virtual Advanced
Manufacturing Training Center--Des Moines Area Community
College, Iowa;
--$1,036,000 to the National Institute for Metalworking
Skills in Fairfax, VA to serve youth and adults in the area's
metalworking industry;
--$464,000 for the American Indian Science and
Engineering Society--Rural Computer Utilizaton Training;
--$464,000 for the Maui Economic Development Board--Rural
Computer Training;
--$2,900,000 for the Remote Rural Hawaii Job Training
project for low income youth and adults;
--$3,200,000 for Samoan/Asian Pacific Job Training--
Hawaii;
--$4,000,000 for Training and Education Opportunities--
University of Hawaii at Maui;
--$200,000 for the Vermont Information Technology Center
model information technology training initiative--Champlain
College, Burlington, VT;
--$750,000 for the Vermont Department of Employment and
Training one-stop career resource centers;
--$1,900,000 for the North Country Career Center model
education and training program--Newport, VT;
--$92,000 for the Westchester-Putnam Counties Consortium
for Worker Education and Training, Inc. for apprenticeship and
training programs to serve the NY construction industry;
--$485,000 for Waukesha, Wisconsin, workforce training
for economically disadvantaged youth and adults at La Casa de
Esperanza;
--$550,000 for the Dream Center to provide job and
training skills for new labor market entrants or reentrants--
LA, CA;
--$300,000 for VT Technical College--Technology Training
Initiative;
--$880,000 for Focus:HOPE in Detroit for an Information
Technologies Center that provides education and training
programs to women and minorities;
--$691,000 to Campbellsville (KY) Industrial Authority
for programs to upgrade the information technology skills in
the KY community;
--$230,000 to Career Visions, Inc. in Louisville, KY to
pilot computer-based assistive technology training;
--$276,000 for Career Resources, Inc. in Louisville, KY
to develop a basic computer training program focusing on
workplace applications;
--$461,000 to the University of Northern Iowa for a
program to integrate immigrants and refugees into the
workforce;
--$493,000 to the Greater Sacramento Urban League, CA for
an Urban Achievement Program targeting training, employment and
support for urban youth;
--$921,000 to Jones County Junior College in Ellisville,
MS for development and implementation of a technology training
program;
--$921,000 for Haymarket Center in Chicago, IL, to
provide training services through the Family Enrichment Center;
--$921,000 to National Student Partnerships in
Washington, DC;
--$92,000 to the International Agri-Center, in Tulare, CA
for a E-Commerce training initiative;
--$650,000 for the UNLV Center for Workforce Development
and Occupational Research;
--$100,000 for the Community Self-Empowerment &
Employment Program (CSEEP) (PA)--comprehensive employment
readiness, job development, job placement, and case management
for area low-income residents--Pennsylvania;
--$500,000 for Philadelphia Revitalization and Education
Program (PREP) to train minorities for careers in the building
trades through its Diversity Apprenticeship Project (DAP)--
Pennsylvania;
--$921,000 to Wrightco Technologies, Inc. for information
technology training through a ``Fast Track to the Future''
program;
--$480,000 for hands-on manufacturing training at the
Manufacturing and Applied Technology Training Center (MATC)--
Central Oregon Community College;
--$100,000 for BASE, Inc. to provide occupational skills
through its Youth Competency Development Program and training
in the construction trades for low-income/minority women
through partnership with Thaddeus Stevens State College of
Technology--Lancaster, PA;
--$250,000 for Green Thumb, Inc.--conduct program for
low-income elders to develop computer skills--Pennsylvania;
--$500,000 for Allegheny County, Pennsylvania, training
of information technology workers;
--$300,000 for Lehigh University Job Training for hard to
serve disadvantaged youth in manufacturing sector---PA;
--$638,000 for the Collegiate Consortium for Workforce &
Economic Development, Philadelphia Naval Business Center--PA;
--$232,000 for the Yukon Kushokwim Health Corporation--
Alaska;
--$300,000 for Koahnic Broadcasting--Alaska;
--$550,000 for Kawerak, Inc. Vocational Training for
Alaska Natives--Nome, Alaska;
--$800,000 for Ilisagvik College--Barrow, Alaska;
--$927,000 for the Alaska Federation of Natives
Foundation;
--$900,000 for Tlingit-Haida project--job training to
unemployed natives in southeast Alaska;
--$2,300,000 for Alaska Works, Construction Job
Training--Fairbanks, Alaska;
--$2,500,000 for the University of Alaska Fairbanks in
consultation with Western Alaska regional Native non-profit
corporations to conduct job training programs;
--$1,250,000 for the Alaska Native Heritage Center, and
Bishop Museum in Hawaii;
--$921,000 for Transylvania Vocational Services, Inc. in
Brevard, NC for training people with developmental
disabilities;
--$184,000 for the More Opportunities for Viable
Employment program through the Tulare (CA) County Office of
Education, Services for Education and Employment Division;
--$276,000 to the South Metro Regional Leadership Center
in University Park, IL;
--$2,037,000 to the Lawton & Rhea Chiles Center for
Healthy Mothers and Babies in Tampa, FL for training
paraprofessionals in the health-care field;
--$170,000 for Community Technology and Education Center
at the Los Angeles River Center and Gardens in California for a
job training initiative;
--$43,000 to Signature Academy Inc., to further develop
the Exodus to Excellence Youth Program;
--$850,000 for Sinclair Community College, Dayton, Ohio
for an out-of-school youth training project;
--$850,000 to Kingston-Newburgh Enterprise Community,
Newburgh, New York, for a workforce development project;
--$213,000 to the Sullivan-Warwarsing Rural Economic Area
Partnership, in Ferndale, New York for the planning and
development of a manufacturing technology training center;
--$723,000 for Reading Berks Emergency Shelter, Reading,
Pennsylvania to provide employment and training opportunities
for disadvantaged individuals;
--$213,000 to the Melwood Horticultural Training Center,
Upper Marlboro, Maryland, for workforce training for the
disabled;
--$340,000 to the Safer Foundation, Chicago, Illinois for
a workplace acclimation program for ex-offenders;
--$170,000 for South Suburban College, South Holland,
Illinois to expand a bus mechanic workforce development
program;
--$102,000 to the Dallas Urban League, Inc. in Dallas,
Texas for the ACES program to provide literacy and job skills
to disadvantaged youth and adults;
--$765,000 to The West Side Industrial Retention and
Expansion Network (WIRE-Net), Cleveland, Ohio;
--$43,000 to Full Employment Council in partnership with
the Greater Kansas City AFL-CIO in Missouri for Project
Prepare;
--$85,000 to Alderson-Broaddus College, College Hill,
Philippi, West Virginia for a collaborative information
technology training program;
--$595,000 for the Hiram G. Andrews Rehabilitation Center
in Johnstown, Pennsylvania to expand a job training program for
people with disabilities;
--$590,000 for the Northwest Concentrated Employment
Program in Ashland, Wisconsin, for an online skill matching
initiative tied to the O*Net database;
--$510,000 to the Berkshire Applied Technology Council,
Inc., Pittsfield, Massachusetts to expand training and develop
distance learning;
--$1,275,000 to the San Francisco Department of Human
Services, California, for its Community Jobs Initiative;
--$616,000 to the Charity Cultural Services Center, San
Francisco, California, for job training;
--$468,000 for the Rebirth of Englewood Community
Development Corporation in Chicago, Illinois for a job training
initiative in partnership with the ITT Research Institute;
--$468,000 for the Northern Great Plains Initiative for
Rural Development, Crookston, Minnesota, to provide education
and training in technology support;
--$298,000 to Kent State University in Ohio for the Ohio
Employee Ownership Center, for workplace development; and
--$425,000 to Rhode Island Department of Labor and
Training, Providence, Rhode Island, for a job training program;
There is a shortage of trained closed captioners to
enable the deaf and hard of hearing community to get news and
other vital information from live television. In order to meet
the requirements set forth by the Telecommunications Act of
1996, there is an urgent need for pilot programs to increase
the availability of trained closed captioners. The conferees
urge the Employment and Training Administration to invest in
and support research and pilot programs, which would allow for
an adequate number of captioners to be trained.
The conferees believe that the Association of Farmworker
Opportunity Programs provides valuable technical assistance and
training to grantees and has distinguished itself as a
tremendous resource. Its Children in the Fields Campaign
provides information, education, and technical assistance
related to child labor in agriculture. The Campaign also
provides other assistance related to employment, training
(including pesticide and other worker safety training for
children and adults). The Department is encouraged to continue
the services that the Association provides in these areas.
The conferees urge the Employment & Training
Administration to demonstrate programs that build upon
identified best practices such as the Public/Private Venture's
model workplace mentoring pilot program.
The conferees are concerned with the lack of mentoring
and other support services available to the youth of
incarcerated parents or legal guardians. The conferees urge the
Employment and Training Administration to fund demonstration
programs to meet the special needs of these youth. These
activities should build upon identified best practices such as
the U.S. Dream Academy's model which helps youths with parents
or guardians involved in life cycles of incarceration and
release. Its aim is to help these youths become good and
productive citizens.
The fiscal year 2000 conference report (H. Rept. 106-479)
included $1,000,000 for the Massachusetts Corporation for
Business, Work and Learning for the International Shipbuilding
Training Demonstration project. However, the reopening of the
Fore River Shipyard in Quincy has been delayed. Workers
dislocated from the closing of the shipyard still need job
training; therefore, the Department is directed to use the
$1,000,000 in the fiscal year 2000 appropriation to fund the
Corporation for Business, Work and Learning for the Training of
workers in the Quincy area for jobs within the Marine and
Shipbuilding industries.
State Unemployment Insurance and Employment Service Operations
The conference agreement includes $3,365,698,000 for
state unemployment insurance and employment service operations
instead of $3,097,790,000 as proposed by the House and
$3,249,430,000 as proposed by the Senate. The agreement
includes $35,000,000 instead of the $25,000,000 proposed by the
Senate for reemployment services grants to insure that
unemployment insurance claimants will be able to get the
customized re-employment services they need to speed their
reentry to employment. The House provided no funding for this
program.
The conference agreement includes $26,100,000 for the
foreign labor certification program as proposed by the House
instead of $25,600,000 as proposed by the Senate. For one-stop
centers/labor market information, the agreement includes
$150,000,000 instead of the $110,000,000 proposed by the
Senate. The House provided no funding for this program. These
funds will be used to support infrastructure upgrades at the
State level for one-stop career center system operations, labor
market information, and integrated services to employers and
job seeker customers.
Program Administration
The conference agreement includes $159,158,000 for
program administration instead of $146,000,000 as proposed by
the House and $156,158,000 as proposed by the Senate. The
detailed table at the end of this joint statement reflects the
activity distribution agreed upon. The conference agreement
also includes funding for management and oversight of pilot and
demonstration projects and additional administrative funding
for backlog reduction in the alien labor certification program
as listed in the Senate report.
Pension and Welfare Benefits Administration
Salaries and Expenses
The conference agreement includes $107,832,000 for the
pension and welfare benefits administration, salaries and
expenses instead of $98,934,000 as proposed by the House and
$103,342,000 as proposed by the Senate. The increase will fully
fund the request for expanded health and pension education and
outreach efforts and enhanced pension enforcement.
Pension Benefit Guaranty Corporation
The conference agreement includes $11,652,000 for the
administrative expense limitation as proposed by the Senate
instead of $11,148,000 as proposed by the House.
Employment Standards Administration
Salaries and Expenses
The conference agreement includes $363,476,000 for the
employment standards administration, salaries and expenses
instead of $338,770,000 as proposed by the House and
$352,764,000 as proposed by the Senate. This amount fully funds
the request for ESA, including the Wage and Hour Division's
request to expand its domestic child labor compliance and
enforcement efforts; and the Office of Federal Contractor
Compliance's activities to increase outreach, education, and
technical assistance to federal contractors through industry
partnerships on equal pay issues; and a customer communications
initiative in the Office of Worker's Compensation.
On contracts for the provision of debt collection
services, the Department of Labor shall continue to recognize
the payment of commissions in the determination of McNamara-
O'Hara Service Contract Act (SCA) wage rates and shall continue
to recognize such payments as an offset against an employer's
SCA prevailing wage obligation. In addition, the Department is
encouraged to consider the special circumstances for
contingency fee-based debt collection contracts and the
potential fluctuations in commissions, particularly for less
experienced employees.
Special Benefits
The conference agreement includes bill language to allow
the Secretary to use fair share collections to fund capital
investment projects and special investments to strengthen
compensation fund control and oversight. The amounts cited in
the House and Senate bills have been modified to reflect
updated estimates of fair share collections from the non-
appropriated agencies, such as the Postal Service, for fiscal
year 2001.
Black Lung Disability Trust Fund
The conference agreement includes a definite annual
appropriation of $975,343,000 for black lung benefit payments
and interest payments on advances made to the Trust Fund as
proposed by the House instead of an indefinite permanent
appropriation as proposed by the Senate.
Occupational Safety and Health Administration
Salaries and Expenses
The conference agreement includes $425,983,000 for
occupational safety and health administration, salaries and
expenses as proposed by the Senate instead of $381,620,000 as
proposed by the House. The conference agreement does not
include language proposed by the Senate that would have
earmarked $22,200,000 of the increase over the fiscal year 2000
appropriation for education, training, and consultation
activities. The House bill contained no similar provision. The
detailed table at the end of this joint statement reflects the
conferees' agreed upon activity distribution.
Mine Safety and Health Administration
Salaries and Expenses
The conference agreement includes $246,747,000 for mine
safety and health administration, salaries and expenses instead
of $233,000,000 as proposed by the House and $244,747,000 as
proposed by the Senate. The conference agreement includes
$2,500,000 over the budget request for physical improvements at
the National Mine Safety and Health Academy.
The conference agreement includes language proposed by
the Senate that allows MSHA to retain and spend up to
$1,000,000 in fees collected for the approval and certification
of mine equipment and materials. The conference agreement also
includes language establishing a $1,000,000 contingency fund
for mine rescue and recovery activities. The House bill
contained no similar provisions.
Concerns have been expressed about the possible
ramifications of a rulemaking on the use of conveyor belts in
underground coal mines, including concerns about the validity
of the testing on which the rule is based. MSHA is urged to
carefully examine the record and to conduct additional research
that may be required to address any significant concerns that
have been raised.
The conferees are extremely concerned by a recent
catastrophe in Eastern Kentucky. Millions of gallons of slurry
coal waste broke free from an impoundment causing considerable
damage to the environment and disrupting water supply for
citizens along the Big Sandy and Ohio Rivers. The conferees
believe this event warrants a thorough examination of current
coal waste disposal methods and an exploration of future
dumping alternatives. Therefore, the conference agreement
includes $2,000,000 for a contract with the National Academy of
Sciences to examine engineering standards for coal waste
impoundments, provide recommendations for improving impoundment
structure stabilization, and evaluate potential alternatives
for future coal waste disposal, including the benefits of each
alternative. The Academy shall seek the participation of
representatives of relevant federal, state, and private
entities, to include MSHA, OSM, EPA, Corps of Engineers, State
mining authorities, and mining companies. Findings of this
study shall be conveyed to the Committees on Appropriations no
later than October 15, 2001.
Bureau of Labor Statistics
Salaries and Expenses
The conference agreement includes $451,584,000 for Bureau
of Labor Statistics, salaries and expenses instead of
$440,000,000 as proposed by the House and $446,584,000 as
proposed by the Senate. The conference agreement also includes
the Senate provision making $10,000,000 available for
obligation on a program year basis from July 1, 2001 to June
30, 2002. The House bill contained no similar provision. This
funding level provides increases for improvements to existing
economic measures, improvements in labor market information
mandated by WIA, and a new time use survey.
Departmental Management
Salaries and Expenses
The conference agreement includes $380,839,000 for
departmental management, salaries and expenses instead of
$244,889,000 as proposed by the House and $337,964,000 as
proposed by the Senate.
The conference agreement includes $148,150,000 for the
Bureau of International Labor Affairs instead of $70,000,000 as
proposed by the House and $115,000,000 as proposed by the
Senate. The conference agreement also includes language
proposed by the Senate to authorize the expenditure of funds
for the management or operation of Departmental bilateral and
multilateral foreign technical assistance through grants and
contracts. The funds for bilateral assistance are made
available through September 30, 2002. The House bill contained
no similar provision. In total, the conference agreement
includes $82,000,000 to assist developing countries with the
elimination of child labor. Of this amount, $45,000,000 is for
expansion of ILO's International Programme for the Elimination
of Child Labor. In addition, $37,000,000 is provided for
bilateral assistance to improve access to basic education in
international areas with a high rate of abusive and
exploitative child labor. These new bilateral initiatives
should be developed in consultation and coordination with USAID
to ensure these programs fit with the overall foreign
operations policy of the Administration and are in compliance
with the Foreign Assistance Act. The conference agreement
includes $45,000,000 as proposed by the Senate to augment the
capacity of Ministries of Labor to enforce labor standards, to
develop social safety net programs, and to develop information
on enforcement of labor laws around the world. The conference
agreement includes $10,000,000 for the Global HIV-AIDS
Workplace Initiative, and these funds are provided in the
Department of Labor appropriation instead of the HHS Public
Health and Social Services Emergency Fund as proposed by the
Senate.
The conferees also include funding for the following
activities:
--$900,000 to the University of Iowa for research
on the issue of abusive and exploitive child labor and
other labor-related issues; and
--$250,000 to the Association of Farmworker
Opportunities Programs for public education on abusive
child labor.
The conferees note from the recent World AIDS Conference
that many national economies continue to be profoundly and
adversely affected by the HIV-AIDS pandemic. For example,
employers in South Africa are now hiring two employees for
every one skilled job. The gross domestic product in many
countries in Africa and Asia is actually contracting because of
a shrinking adult work force attributable to HIV-AIDS related
deaths. At the same time, there is mounting evidence that
workplace-based HIV-AIDS education and prevention programs can
help prevent the spread of HIV, especially in high-risk
occupations. Such programs can help stem employers' loss of
skilled workers, reverse declining productivity, and provide
mechanisms for caring for workers living with HIV and AIDS.
Consequently, the conferees expect ILAB to assume a leading
role in developing innovative business-trade union partnerships
to improve HIV-AIDS prevention and to improve coordination
among the Labor Department, Commerce Department, and USAID.
The conference agreement includes $23,002,000 and
language establishing the Office of Disability Employment
Policy in the Department of Labor as proposed by the Senate.
The House bill continued funding for the President's Committee
on Employment of People with Disabilities, but this activity is
subsumed in the new Office of Disability Employment Policy.
The conference agreement includes $37,000,000 to
establish a permanent, centralized information technology
investment fund.
Veterans Employment and Training
The conference agreement includes $211,713,000 for
veterans employment and training instead of $201,277,000 as
proposed by the House and $206,713,000 as proposed by the
Senate. Included in this amount is $17,500,000 for the homeless
veterans program.
Office of Inspector General
The conference agreement includes $54,785,000 for the
office of inspector general as proposed by the Senate instead
of $51,925,000 as proposed by the House.
GENERAL PROVISIONS
Ergonomics
The conference agreement does not include a provision
included in both the House and Senate bills relating to
regulations issued by the Occupational Safety and Health
Administration relating to ergonomic protection.
Extended Deadline for Expenditure of Welfare to Work Funds
The conference agreement includes a provision proposed by
the Senate extending the availability of Welfare to Work
funding from three to five years. The House bill contained no
similar provision.
H2A Regulations
The conference agreement includes a modified version of
the Senate provision prohibiting the implementation or
enforcement of the pending H2A regulations, but allows for all
activities related to the development of revised regulations.
The conferees support the efforts by the Secretary of Labor and
the Attorney General designed to streamline the H2A application
process. The conferees expect the Department and the
Immigration and Naturalization Service to work closely with the
stakeholders to expeditiously address concerns raised by the
growers so that the streamlined application process produces a
more efficient new system.
Deadline for Determination on Housing Requirements for H2A Workers
The conference agreement includes a provision regarding
housing inspections for H2A temporary agricultural laborers.
This provision ensures that the deadline for housing
inspections for H2A workers corresponds with the Secretary's
thirty day statutory deadline for making H2A temporary
agricultural labor certification decisions. The thirty day
deadline may have been effectively nullified in some cases by
the current regulations requiring that inspections on employer
provided housing need not be completed until twenty days before
the date the employer needs H2A workers. The provision requires
housing inspections to be completed in time for the Secretary
to make her certification decision in accordance with the
thirty day statutory deadline.
Alien Labor Certification
The conference agreement includes a provision that
authorizes the use of H1B fee revenue to process permanent
labor certifications. This is needed because the recent
legislation increasing the number of H1B visas authorized will
result in a substantial increase in the volume of permanent
labor certification applications. The Department of Labor has
made significant progress over the past 18 months to reduce the
backlog of applications for permanent labor certifications, and
in expediting the labor condition application process for the
H-1B program. In order to allow the Department to make further
progress on timeliness of labor certifications without
undermining the review process, the Department will be
permitted to utilize a portion of fees generated by the H-1B
program to support the administration of the permanent labor
certification program.
Elimination of Welfare to Work Performance Bonuses
The conference agreement includes a provision proposed by
the Senate to eliminate Welfare to Work performance bonuses.
The House bill contained no similar provision.
TITLE II--DEPARTMENT OF HEALTH AND HUMAN SERVICES
Health Resources and Services Administration
Health Resources and Services
The conference agreement includes $5,525,476,000 for
health resources and services instead of $4,784,232,000 as
proposed by the House and $4,677,424,000 as proposed by the
Senate.
The conference agreement includes bill language
identifying $226,224,000 for the construction and renovation of
health care and other facilities instead of $10,000,000 as
proposed by the Senate. The House bill contained no similar
provision. These funds are to be used for the following
projects: Northwestern University Life Sciences Building;
ACCESS Community Health Network in Illinois; Northwestern
Memorial Hospital; University of Chicago Core Genetics Research
Facility; Condell Medical Center, Regional Center for Cardiac
Health Services; Lake County Health Department; University
Center of Lake County, Illinois; Finch University of Health
Sciences/Chicago Medical School; Pennington Biomedical Research
Center in Baton Rouge, Louisiana; Texas Institute for
Rehabilitation and Research; Massey Cancer Center of Virginia
Commonwealth University; Aurelia Osborn Fox Memorial Hospital
in Oneonta, New York; Margaretville Memorial Hospital in
Margaretville, New York; Martha's Village and Kitchen Medical
Clinic in Indio, California; Hanson House at the Desert
Regional Medical Center; Nutrition Center at Wake Forest
University Baptist Medical Center; James Whitcomb Riley
Hospital for Children in Indianapolis, Indiana; University of
South Alabama Gulf Coast Cancer and Research Institute; North
Baldwin Hospital Surgery Center in Bay Minette, Alabama; Monroe
County Hospital in Monroesville, Alabama; Touro University
College of Osteopathic Medicine in Vallejo, California; Medical
Sciences Building at the University of Cincinnati Medical
Center in Cincinnati, Ohio; Tinnitus Center for Tinnitus
Retraining Therapy at the University of North Carolina at
Greensboro; Alfred E. Mann Institute and Biomedical Engineering
Center at the University of Southern California; Paradise
Valley Hospital in National City, California; Children's
Hospital and Health Center in San Diego, California; Dental
Education in Care of Disabled Clinic at the University of
Washington; Alexander Hughes Community Center in Claremont,
California; Biomedical Marine Research Facility at Harbor
Branch; Kessler Rehabilitation Research Institute in West
Orange, New Jersey; Child Health Institute of New Jersey;
University of Nevada Las Vegas Biotechnology/Bioengineering
Research Facility; McCready Health Services Foundation in
Crisfield, Maryland; Center for Health Sciences at Dominican
College in Rockland County, New York; Pediatric Cardiac
Intensive Care Unit at Cook Children's Medical Center in Fort
Worth, Texas; Tricounty Health Center at Northern Illinois
University; Aurora Primary Care Consortium; Turning Point
Facility in Union County, North Carolina; Gila River Indian
Community Diabetes Center in Arizona; Dalton Cardiovascular
Research Center at the University of Missouri at Columbia;
Scripps Memorial East County Hospital in El Cajon, California;
Marklund Children's Home; Misericordia Hearts of Mercy in
Chicago, Illinois; University of Connecticut Health Center;
Nassau County Health Care Corporation; Women's Health Center at
Proctor Hospital in Peoria, Illinois; Oklahoma Medical Research
Foundation; Louisiana State University Health Sciences Center
Feist-Weiller Cancer Center in Shreveport, Louisiana; Lewis
County General Hospital in Lewis County, New York; Stetson
University in Deland, Florida; National Center for Primary Care
at Morehouse School of Medicine; Springdale Community Health
Center in Springdale, Washington; Edgemoor Geriatric Hospital
in San Diego County, California; Union Hospital Midwest Center
for Rural Health in Terre Haute, Indiana; Bennett W. Smith
Family Life Wellness Center in Buffalo, New York; Children's
Hospital of Buffalo; Fresno Community Hospital and Medical
Center Regional Ambulatory Care Facility in Fresno, California;
Pediatric Oncology and the Batchelor Children's Research Center
at the University of Miami/Jackson Memorial Medical Center;
Valley Hospital Cancer and Ambulatory Care Center in Paramus,
New Jersey; Functional Genomics Research Center at Florida
Atlantic University in Boca Raton, Florida; Michael and Dianne
Bienes Cancer Center at Holy Cross Hospital in Ft. Lauderdale,
Florida; Outpatient Surgery Facility at Memorial Hospital in
Towanda, Pennsylvania; University of Scranton Allied Health
Laboratory; Southern Illinois Healthcare Foundation in East St.
Louis, Illinois; University of St. Francis in Fort Wayne,
Indiana; Maricopa Integrated Health Systems in Phoenix,
Arizona; Albany Medical Center Breast Cancer Diagnostic and
Treatment Center in Albany, New York; Adirondack Medical Center
in Saranac Lake, New York; Mary McClellan Hospital in
Cambridge, New York; North Central Texas Community Health Care
Center in Wichita Falls, Texas; St. Joseph's Hospital New York
Regional Hemodialysis and Cardiac Care Enhancement Center in
Syracuse, New York; Stroud Regional Hospital in Stroud,
Oklahoma; Will County Health Center in Illinois; Molecular
Genetics Core for the Center for Excellence in Cardiovascular-
Renal Research at the University of Mississippi Medical Center;
Tallahatchie General Hospital and Extended Care Facility in
Charleston, Mississippi; Operation PAR in Pinellas Park,
Florida; Detroit Medical Center, Women's and Children's health
facility; Detroit Medical Center, Rehabilitation Institute of
Michigan; Big Springs Medical Association in Missouri;
Southeast Missouri Health Network; People's Health Center in
St. Louis, Missouri; Denver Children's Hospital; National
Jewish Medical and Research Center in Denver; Breast Cancer
Center at Our Lady of Fatima Hospital in North Providence,
Rhode Island; Jackson Medical Mall, Mississippi Institute for
Cancer Research; Conehatta Tribal Community Health Care Clinic;
Sharkey/Issaquena Hospital, Rolling Fork, Mississippi; Jackson
Laboratory Physiogenomics facility in Maine; St. Joseph's
Hospital in Ohio; Huron Hospital in Cleveland, Ohio; Ohio
Poison Control Collaborative; Boys Town National Research
Hospital in Omaha, Nebraska; University of Utah's Huntsman
Cancer Institute; University of North Carolina Genomics and
Bioinformatics; Burlington Community Health Center, Burlington,
Vermont; Red Logan Community Health Center; Vermont Cancer
Center; Vermont Lung Association Asthma Clinic; University of
Mississippi, Guyton Building Expansion; Haysi Medical Clinic in
Virginia; Allegheny-Clarion Valley Community Health Center;
University of Alabama-Birmingham, Interdisciplinary Biomedical
Research Facility; Umatilla County Public Health Facility;
Bioengineering Research Facility at Oregon Health Sciences
University; Temple University Outpatient Facility; Philadelphia
College of Osteopathic Medicine; Thomas Jefferson University
Cancer Research Facility; State of Alaska Public Health
Laboratory in Anchorage; ``Pathways Home'' inpatient facility
for the Southcentral Foundation; Montezuma Creek Health Care
Center; Sorenson Multicultural Health Center; Midvale/West
Jordan and Glendale, Utah Health Centers; St. Vincent Hospital
in Billings, Montana; Rocky Mountain Regional Trauma Center at
Denver Health and Hospital Authority; Carriozo Health Clinic;
Dan C. Trigg Memorial Hospital; El Pueblo Health Services; La
Clinica de Familia in Chaparral, New Mexico; La Clinica de
Familia in San Miguel, New Mexico; Las Clinical del Norte De
Abiquiu; Logan Family Clinic in New Mexico; Montgomery Women's
Health Services Clinic of Lea County; Mora Community Health
Service; Ruidoso Sub-station Health Service; Sierra Vista
Family Community Clinic; Tatum Health Clinic; Children's
National Medical Center in Washington; Arkansas Children's
Hospital; Biomedical Biotechnology Center at the University of
Arkansas Medical School in Little Rock; University of Arkansas,
Fayetteville, Center for Protein Structure and Function;
University of Arkansas, Little Rock, Applied Biosciences
Program; Kansas University Human Imaging Institute; North
Philadelphia Health System; Children's Health Fund; Crozer-
Keystone Health System in Delaware County; Family Care Health
Center in St. Louis, Missouri; Cathedral Healthcare System;
Chase Brexton Health Services, Inc.; Children's Hospital of
Boston; Children's Hospital of Wisconsin Neonatal Intensive
Care Unit; Daviess County Community Health Center; Family
Health Centers, Inc. of Orangeburg, South Carolina; Community
Health facilities in southeast Iowa; Hillside Hospital in Long
Island, New York; La Rabida Children's Hospital, Chicago;
Marquette University School of Dentistry; Medical University of
South Carolina Oncology Center; Molokai General Hospital; New
York University School of Medicine; Palmer College of
Chiropractic in Davenport, Iowa; Pioneer Valley Life Sciences
Joint Venture between the University of Massachusetts and
Baystate Medical Center; Rio Arriba County Residential
Treatment Facility; Rutland Regional Medical Center; Sea Island
Comprehensive Health Care Corporation; St. Mary's Healthcare
Promotion Center in Huntington, West Virginia; St. Mary's Women
and Infants Center of Dorchester; the Neurosciences program at
West Virginia University; Tufts University Center for Nutrition
Research; University of South Carolina School of Public Health;
University of Vermont College of Medicine and Fletcher Allen
Health Care; University of Nevada, Las Vegas Cancer Center;
University of Montana Center for Environmental Health Sciences;
University of Florida Genetics Institute; Hackensack University
Medical Center in Hackensack, New Jersey; Brandeis University
National Center for the Study of Behavioral Genetics and
Genomics; Marlborough Hospital in Marlborough, Massachusetts;
West Virginia University Eastern Panhandle Clinical Campus in
Martinsburg; St. Mary's Hospital for Children, Bayside, New
York; Virginia Mason Medical Center, Seattle, Washington;
Memorial Hospital of Lafayette County, Darlington, Wisconsin;
Saginaw Cooperative Hospitals, Inc., Saginaw, Michigan; El
Sereno Family Health Center, El Sereno, Los Angeles; Community
College of Southern Nevada Medical Careers Center, North Las
Vegas, Nevada; Columbia County Senior Services, Lake City,
Florida; San Luis Obispo medical therapy unit, California;
Greene County Health Care, Inc., Snow Hill, North Carolina; St.
Clair County, Belleville, Illinois, senior center and wellness
clinic; Sunshine House, New Haven, Connecticut; City of Culver
City, California, senior health and social services center;
Community Partners Healthnet Inc., Snow Hill, North Carolina;
North Shore Long Island Jewish Health System, Hillside Hospital
Campus, Glen Oaks, New York; Cooper Green Hospital, Birmingham,
Alabama; Whitman-Walker Clinic, Inc., Washington, DC; Prince
George's Hospital Center, Cheverly, Maryland; Roseland
Community Hospital, Chicago, Illinois; Metropolitan Family
Services, Chicago, Illinois, mental and public health facility;
South Suburban Family Shelter Inc., Homewood, Illinois; Rush-
Presbyterian-St. Luke's Medical Center, Chicago, Illinois; Lake
Charles Memorial Hospital, Lake Charles, Louisiana; West End
Medical Centers, Atlanta, Georgia; New York Structural Biology
Center, New York, New York; Memorial Freeport-Roosevelt Health
Center, Roosevelt, New York; University of North Carolina at
Wilmington School of Nursing, Wilmington, North Carolina;
Joseph P. Addabbo Family Health Center, Arverne, New York; Los
Angeles Eye Institute, Los Angeles, California, Boston College,
Chestnut Hill, Massachusetts; West Liberty State College Dental
Hygiene Clinic, West Liberty, West Virginia; Grafton City
Hospital, Grafton, West Virginia; New York University Downtown
Hospital, New York City, New York; Saint Michael's Hospital,
Stevens Point, Wisconsin; Holyoke Health Center, Holyoke,
Massachusetts; Montefiore Medical Center, Bronx, New York;
Christopher Rural Health Planning Corporation, Christopher,
Illinois; Centro de Salud Familiar La Fe, El Paso, Texas;
Englewood Hospital and Medical Center, Englewood, New Jersey;
Plaza Community Center, Inc., Los Angeles, California,
children's health and social services center; Fairview
University Medical Center, Minneapolis, Minnesota; Asian Human
Services community health center, Chicago, Illinois; Strong
Memorial Hospital, Rochester, New York; University of Arkansas
Medical Sciences, Little Rock, Arkansas; Trinity Health
Systems, Detroit, Michigan; Henderson County Rural Health
Center in Oquawka, Illinois; and City of Summersville, West
Virginia, senior health and social services facility.
The conferees are supportive of the efforts of the
Academic Medicine Development Corporation to implement a
strategic initiative for human genetics research in New York.
The conference agreement includes bill language
identifying $253,932,000 for family planning instead of
$238,932,000 as proposed by the House and $253,932,000 as
proposed by the Senate. The conferees concur with Senate report
language regarding the distribution of funds appropriated for
Title X.
The conference agreement includes bill language to
provide $30,000,000 for abstinence education in fiscal year
2002 as proposed by the House. The Senate bill contained no
similar provision.
The conference agreement includes $1,168,700,000 for
community health centers as proposed by the Senate instead of
$1,100,000,000 as proposed by the House. Within the total
provided, $6,250,000 is for native Hawaiian health programs.
The conferees recognize the long-standing commitment and
expertise of the University of Hawaii in addressing the unique
health care needs of the Pacific Basin region.
The conferees urge HRSA to give full and fair
consideration to proposals to support expanded services to
reach priority populations in under-served communities in Kane,
Marion, Saline, and Will, Illinois counties on the southwest
side of Chicago and in the AAPI community on the north side of
Chicago.
The conference agreement includes $41,523,000 for the
national health service corps, field placements instead of
$39,823,000 as proposed by the House and $38,116,000 as
proposed by the Senate.
The conference agreement includes $87,924,000 for
national health service corps, recruitment instead of
$81,524,000 as proposed by the House and $78,625,000 as
proposed by the Senate. Within the total provided, $4,000,000
is for State offices of rural health. The conferees recommend
that national health service corps loan repayment awards
continue to be made in areas of greatest need.
The conference agreement includes $638,048,000 for health
professions instead of $410,987,000 as proposed by the House
and $230,714,000 as proposed by the Senate. Within the total
provided, $235,000,000 is for children's graduate medical
education. Also within the total provided for allied health
special projects, $921,000 is for expansion of the Illinois
Community College Board's program, in coordination with the
Illinois Department of Human Services, to train and place
welfare recipients in the allied health field using distance
technology. The amount provided does not include funding to
continue the demonstration project by the Utah area health
education centers.
The conferees concur with House and Senate report
language regarding priority consideration for health careers
opportunities program (H-COP) grants to minority health
professions institutions.
The conferees urge HRSA to give full and fair
consideration to proposals to expand access to primary and
dental care services for medically underserved populations
located in the areas of St. Louis City, and the Missouri
counties of Jefferson, Lafayette, Greene, and Douglas.
The conference agreement includes $18,016,000 for
Hansen's disease services instead of $17,016,000 as proposed by
both the House and the Senate. Within the total provided,
$900,000 is for the Diabetes Lower Extremity Amputation
Prevention program at the University of South Alabama.
The conference agreement includes $714,230,000 for the
maternal and child health block grant instead of $709,130,000
as proposed by both the House and the Senate. The conference
agreement includes bill language designating $113,728,000 of
the funds provided for the block grant for special projects of
regional and national significance (SPRANS) as proposed by the
House. It is intended that $5,000,000 of the SPRANS amount will
be used for the continuation of the traumatic brain injury
State demonstration projects as authorized by title XII of the
Public Health Service Act. The Senate bill contained no similar
provision, instead it provided $5,000,000 as a separate line
item in the table for traumatic brain injury. It is also
intended that $5,000,000 of the SPRANS amount will be used for
Columbia Hospital for Women Medical Center in Washington, DC to
support community outreach programs for women and $100,000 will
be used for the St. Joseph's Health Services of Rhode Island
for the Providence Smiles dental program for low-income
children.
The conferees are supportive of HRSA's efforts in
preventing youth suicides. HRSA has made reducing the rate of
youth suicide a priority for State MCH agencies, requiring
States to address the crisis of suicide with their block grant
funding.
The conference agreement includes $90,000,000 for healthy
start as proposed by both the House and Senate. It is intended
that these projects will be evaluated and those activities that
are proven successful and can be replicated will be
incorporated into the mission of the maternal and child health
block grant program.
The conference agreement includes $8,000,000 for newborn
and infant hearing screening as proposed by the House instead
of $4,000,000 as proposed by the Senate.
The conference agreement includes $15,000,000 for organ
transplantation as proposed by the Senate instead of
$10,000,000 as proposed by the House.
The conference agreement includes $22,000,000 for the
bone marrow program as proposed by the House instead of
$17,959,000 as proposed by the Senate. The conferees continue
to be aware of the life saving success of the National Marrow
Donor Program, which now includes more than 4,000,000 potential
volunteer donors. The conferees recognize the continuing need
to increase minority representation in the national registry
and support expansion of the National Marrow Donor Program's
cord blood bank initiative, which provides another major source
of donors for patients, particularly minority patients, in need
of a marrow or blood stem cell transplant.
The conference agreement includes $58,218,000 for rural
health outreach grants instead of $30,867,000 as proposed by
the House and $38,892,000 as proposed by the Senate. The
conferees are supportive of HRSA providing heart defibrillators
to rural areas.
The conferees include the following amounts for the
following projects and activities in fiscal year 2001:
--$50,000 for the La Crosse Health Science Consortium for
a demonstration to increase access to dental care in La Crosse
county;
--$85,000 for the Tillamook County Health Department,
Oregon, to expand primary and dental health services for
underserved populations;
--$850,000 for AIDS Alliance for Children, Youth, and
Families;
--$115,000 for the Anderson Valley Health Center, Inc.,
Boonville, California, to expand dental and health care
services;
--$128,000 for the Partnership for the Children in San
Luis Obispo County, California, for a low income dental clinic;
--$170,000 for Northern Counties Health Care, Inc., St.
Johnsbury, Vermont for a rural outreach initiative;
--$213,000 for the Mercer County Health Department in
Aledo, Illinois, to extend dental care services to rural
underserved populations;
--$300,000 for Blackstone Valley Community Health Care,
Inc.;
--$359,000 for outreach activities of the Blue Ridge
Community Health Service;
--$400,000 for the Kentucky Emergency Medical Services
Academy;
--$450,000 for CAP Services in Stevens Point, Wisconsin
to extend dental health services to underserved populations;
--$500,000 for St. Luke's Free Clinic in Hopkinsville,
Kentucky;
--$500,000 for the Texas A&M HERO program;
--$500,000 for State and University of Alaska to train
emergency medical personnel in rural areas;
--$500,000 for Inland Health Northwest;
--$425,000 for Campbellton-Graceville Hospital in
Graceville, Florida, to expand clinical and preventive health
care services to low income, rural populations;
--$550,000 for Langlade Memorial Hospital, Antigo,
Wisconsin, for a four county dental health initiative;
--$700,000 for the Western Kentucky University mobile
health screening program;
--$1,311,000 for outreach activities of the Lourdes
Health Network in Pasco, Washington;
--$900,000 for Iowa Department of Public Health to
develop and demonstrate the use of technology for public health
nurses working in rural areas;
--$921,000 to continue and expand the development of the
Center for Acadiana Genetics and Hereditary Health Care at
Louisiana State University Medical Center;
--$800,000 for the University of Southern Mississippi
Center for Sustainable Health Outreach;
--$1,106,000 for Carondelet Health Network of Arizona to
improve the health status of multi-cultural and medically
disenfranchised populations through increased community health
access and comprehensive continuum of care;
--$1,200,000 for Southern Illinois University;
--$1,318,000 for Voorhees College in Denmark, South
Carolina for a Center of Excellence for rural health;
--$1,800,000 for the University of Colorado School of
Dentistry to conduct an oral health prevention and treatment
program in Shannon, Jackson, Bennett, and Todd counties in
South Dakota;
--$1,900,000 for the Yukon-Kuskokwim Health Corporation's
health care delivery system; and
--$2,300,000 for the Mississippi State University Rural
Health Safety and Security Institute.
The conference agreement includes $13,439,000 for rural
health research instead of $11,713,000 as proposed by the House
and $5,000,000 as proposed by the Senate.
The conferees include the following amounts for the
following projects and activities in fiscal year 2001:
--$143,000 for the University of Pittsburgh Center for
Rural Health Practice;
--$170,000 for Madison Community Health Center, Madison,
Wisconsin, for a model preventive health program for hard to
reach and at-risk populations;
--$250,000 for the multiple sclerosis disease state
management program at the University of Mississippi Center for
Pharmaceutical Marketing;
--$306,000 for the Texas Tech University Health Sciences
Center at El Paso and the University of Texas at El Paso for
joint research on health problems of migrant workers;
--$400,000 for the McLaughlin Research Institute cancer
education program;
--$500,000 for the University of Alaska to develop a
research and evaluation agenda for health care delivery;
--$840,000 for the Marshfield Clinic in Marshfield,
Wisconsin, for scientific, ethical and citizen advisory groups
and education programs in connection with the development of a
personalized medicine program;
--$921,000 for the Virginia Center for Sustainable Health
Outreach at James Madison University;
--$921,000 for Atlantic City Medical Center for
prevention services and medical education activities;
--$1,275,000 for the University of North Dakota School of
Medicine, Grand Forks, North Dakota for a rural health program
in preventive medicine and behavioral sciences; and
--$1,612,000 for the Carolina's Community Health
Initiative for its community health assessment plan.
The conferees encourage the National Human Genome
Research Institute and the Agency for Healthcare Research and
Quality to provide any necessary technical assistance to HRSA
in supporting the Marshfield Clinic project.
The conference agreement includes $35,981,000 for
telehealth instead of $25,000,000 as proposed by the Senate.
The House provided funding for this program within rural health
research.
The conferees include the following amounts for the
following projects and activities in fiscal year 2001:
--$14,000 for networking capabilities of the Cullman
Area, Alabama, Mental Health Authority;
--$43,000 for Arrowhead Regional Medical Center, Colton,
California, for a telemedicine regional network;
--$85,000 for the New York Primary Care Health
Foundation, Inc., Flushing, New York, for a telehealth
initiative;
--$111,000 for Staten Island University Hospital to
support a teleconferencing initiative to improve and strengthen
linkages within campuses;
--$184,000 for the Union Hospital Telehealth
Demonstration project in Terre Haute, Indiana;
--$300,000 for the University of Michigan Emergency
Telemedicine Network;
--$350,000 for Molokai General Hospital to use the latest
technology advances to provide health care in rural areas;
--$340,000 for Massachusetts College of Pharmacy and
Health Sciences, Worcester, Massachusetts for a telehealth
initiative;
--$361,000 for the Center for Telehealth and Distance
Education at the University of Texas Medical Branch, Galveston,
Texas for a telehealth initiative;
--$430,000 for Daemen College in Amherst, New York to
continue a project to provide distance learning/medical
linkages to rural counties in Western New York State;
--$500,000 for a telehealth project at Magee-Women's
Hospital;
--$500,000 for the Susquehanna Health Systems
telemedicine project;
--$468,000 for the Southern Illinois University School of
Medicine telemedicine and rural health initiative project;
--$489,000 for the La Crosse Medical Health Science
Consortium, Inc., Wisconsin for a telehealth initiative;
--$750,000 for a joint New Mexico-Hawaii Telehealth
Outreach for Unified Community Health;
--$638,000 for Children's Hospital and Regional Medical
Center in Seattle, Washington;
--$737,000 for the Community Hospital Telehealth
Consortium in Louisiana for continued development of a regional
telehealth network;
--$783,000 for the Memorial Telehealth Network in
Springfield, Illinois;
--$723,000 for Childrens Hospital Los Angeles,
California, for a telemedicine initiative;
--$737,000 for the Rural Telehealth and Community
Education Network at Central Michigan University;
--$900,000 for the Southwest Alabama Rural Telehealth
Network at the University of South Alabama;
--$850,000 for New York Presbyterian Hospital for a
telehealth initiative;
--$850,000 for the University of Pittsburgh Medical
Center Information Technology project;
--$1,000,000 for the University of Florida Human Brain
Functional Imaging Technology project;
--$800,000 for the University of Nebraska telemedicine
outreach program;
--$850,000 for the Fairview Lakes Regional Medical Center
in Wyoming, Minnesota telemedicine project;
--$1,020,000 for the Northern California Telemedicine
Network, Santa Rosa Memorial Hospital, Santa Rosa, California;
--$1,290,000 for a telemedicine program for downstate
Illinois through the Southern Illinois University Medical
School in Springfield, Illinois;
--$1,335,000 for the University of Nevada Las Vegas
Telemedicine Network;
--$1,770,000 for the Idaho Telehealth Integrated Care
Center to establish a comprehensive telehealth clinic to
support care in rural and frontier areas;
--$1,843,000 for the Telehealth Deployment Research
Testbed program;
--$1,800,000 for a project to link Rocky Mountain College
and Deaconess Billings Clinic with telemedicine capabilities;
--$1,700,000 for the Saint Vincent Hospital in Billings,
Montana for its Telemedicine Model;
--$2,418,000 for the Northeast Ohio Outreach Network to
expand health services to rural residents in northeastern Ohio;
and
--$3,400,000 for the Alaska Federal Health Care Access
Network.
The conference agreement includes $19,000,000 for
emergency medical services for children as proposed by the
House instead of $15,000,000 as proposed by the Senate.
The conference agreement includes $20,000,000 for poison
control instead of $6,600,000 as proposed by the House and
$26,000,000 as proposed by the Senate. Funds are provided to
support activities authorized in the Poison Control Center
Enhancement and Awareness Act.
The conference agreement includes $6,000,000 for black
lung clinics as proposed by the Senate instead of $5,943,000 as
proposed by the House.
The conference agreement includes $3,000,000 for trauma
care as proposed by the Senate. The House bill contained no
similar provision.
The conference agreement includes a total of
$1,807,700,000 for Ryan White programs instead of
$1,725,000,000 as proposed by the House and $1,650,000,000 as
proposed by the Senate. Included in this amount is $604,200,000
for emergency assistance, $911,000,000 for comprehensive care,
$185,900,000 for early intervention, $65,000,000 for pediatric
HIV/AIDS, $10,000,000 for dental services, and $31,600,000 for
education and training centers.
The conference agreement includes bill language
identifying $589,000,000 for the Ryan White Title II State AIDS
drug assistance programs instead of $554,000,000 as proposed by
the House and $538,000,000 as proposed by the Senate. The
conferees concur with Senate report language regarding the
Institute of Medicine study to evaluate the effectiveness of
the current role and structure of the Ryan White CARE Act and
the efforts to create a national consumer and provider
education center within pediatric HIV/AIDS.
The conference agreement includes $109,200,000 for Ryan
White AIDS activities that are targeted to address the trend of
the HIV/AIDS epidemic in communities of color, based on the
most recent estimated living AIDS cases, HIV infections and
AIDS mortality among ethnic and racial minorities as reported
by the Centers for Disease Control and Prevention. These funds
are allocated as follows:
Within Ryan White Title I, the agreement provides
$34,000,000 to the competitive supplemental allocation targeted
to minority community based organizations, as defined by the
Centers for Disease Control and Prevention, and directs that
these funds be allocated through the established planning
council processes of eligible metropolitan areas. These funds
are designed to reduce the HIV related health disparities and
improve the health outcomes for HIV infected African Americans,
Latinos, Native Americans, Asian Americans, Native Hawaiians
and Pacific Islanders. These funds are expected to expand
medical and supportive service capacity in communities of
color, and expand peer treatment education that is both
culturally and linguistically appropriate to individuals living
with HIV/AIDS.
Within Ryan White Title II, the agreement provides
$7,000,000 for State HIV care grants to support educational and
outreach grants to minority community-based organizations to
increase the number of minorities participating in the AIDS
Drug Assistance Program (ADAP). The continuing under
representation of African Americans, Latinos, Native Americans,
Asian Americans, Native Hawaiians and Pacific Islanders in
state run ADAP contributes to their persistently poor health
outcomes in comparison to other communities.
Within Ryan White Title III, the agreement provides
$44,400,000 for planning grants, early intervention service
(EIS) grants to minority community-based health care and
service providers with a history of service provision to
communities of color. Funds should also be made available to
national, regional and local organizations representing people
of color to provide technical assistance collaborations, and
linkages designed to strengthen HIV/AIDS systems of care. Funds
are intended to support the implementation of the plans
developed by minority community based and health care
organizations. The conferees expect that fiscal year 2001
increases to Title III should be directed primarily towards
providing early intervention service grants to those
organizations that received Title III planning grants in the
previous fiscal year and enhancing the service capacity of
existing minority EIS providers.
Within Ryan White Title IV, the agreement provides
$15,700,000 to fund traditional minority community-based
providers of services to minority children, youth and families
to develop and implement culturally competent and
linguistically appropriate research-based interventions that
provide additional HIV/AIDS care, services and linkages. Funds
are also intended to directly fund minority community based
organizations and providers to expand or implement programs
specifically designed to provide youth, adolescent, and young
adult-focused HIV/AIDS care and services.
The agreement provides $7,700,000 to AIDS education and
training centers. These funds are intended to increase training
of community-based minority health care professionals in AIDS-
related treatments, standards of care, guidelines for the use
of antiretroviral and other effective clinical interventions,
and treatment adherence for HIV/AIDS infected adults,
adolescents and children, as developed by the U.S. Public
Health Service. The training of minority providers is to be
implemented through collaborations with Historically Black
Colleges and Universities (HBCU) and Hispanic Serving
Institutions, and Tribal Colleges. These efforts are designed
to increase the treatment expertise and HIV knowledge of
minority front-line providers serving individuals living with
HIV/AIDS. Funds are also intended to support minority community
based organizations to train minority providers to deliver
culturally competent and language appropriate treatment
education services.
The conferees intend that at least ninety percent of
total title IV funding be provided to grantees. The conferees
expect the agency to use the funding increases for title IV,
with the exception of any increases provided through the CBC/
Minority AIDS Initiative, to provide, at a minimum, additional
funds to existing grantees to reflect the increases in the
costs of providing comprehensive care. The agency should use a
significant portion of the remaining funds to expand
comprehensive services for youth, both through existing and new
grantees. The conferees believe that the agency should expand
efforts to facilitate ongoing communication with grantees so
that prospective changes in the administration of the program
can be discussed.
From within the increase provided to pediatric AIDS
demonstrations, the conferees encourage HRSA to target funds
towards approved but unfunded applications from the previous
fiscal year.
The conference agreement includes $140,000,000 for health
care access for the uninsured instead of $25,000,000 as
proposed by the Senate. The House bill did not contain funding
for this unauthorized program. Of this amount, $125,000,000 is
included to provide grants to public, private, and non-profit
health entities to develop and expand integrated systems of
care and address service gaps within such integrated systems
with a focus on primary care, mental health services and
substance abuse services. The program will supplement existing
categorical safety net programs to assist communities in better
harnessing their current capabilities and resources. The
national health care safety net is under enormous strain and
the demand for this initiative large.
The remaining $15,000,000 is to continue the initiative
that was begun in fiscal year 2000 to help states identify the
characteristics of the uninsured within the state and
approaches for providing all uninsured with health coverage
through an expanded state, Federal and private partnership.
States have shown great interest in committing to the
initiative and a second year of funding will produce a more
comprehensive set of designs for providing insurance coverage
for the uninsured. Sufficient funds are included to support up
to ten new state grants, provide technical assistance to
grantees and, if necessary, provide limited supplemental
funding to states funded in fiscal year 2000 to complete their
work. The Secretary is requested to submit a final report on
state findings no later than December 1, 2001. The report
should provide state by state summaries on baseline
information, the process by which the state developed
recommendations, including a description of data collection and
partnerships, characteristics of the uninsured within the
state, the proposed approaches for providing all uninsured with
health coverage, and the estimated public and private cost of
providing coverage. The report should also highlight and
summarize common findings, policy development efforts and
approaches identified by the states.
The conference agreement includes $9,900,000 for an
adoption awareness program as authorized in the Child Health
Act of 2000.
The conference agreement includes $10,000,000 for
authorized health-related activities of the Denali Commission.
The conference agreement includes $139,246,000 for
program management instead of $128,123,000 as proposed by the
House and $135,766,000 as proposed by the Senate.
The conferees include the following amounts for the
following projects and activities in fiscal year 2001:
--$230,000 for the Illinois Poison Center;
--$250,000 for the University of Alaska to establish an
INPSYCH Center to train Alaska natives as psychologists to
practice in Alaska villages;
--$500,000 for the University of Alaska, Anchorage to
recruit and train nurses;
--$700,000 to support the efforts of the American
Federation for Negro Affairs Education and Research Fund of
Philadelphia;
--$900,000 for Northeastern University in Boston,
Massachusetts to train doctors to serve low-income communities;
and
--$900,000 for Des Moines University Osteopathic Medical
Center for development of a model program for training and
education in the field of geriatrics.
The Child Health Act of 2000 authorizes oral health
activities intended to improve the oral health of children
under six years of age who are eligible for services provided
under a Federal health program. These activities should
increase the utilization of dental services by such children
and decrease the incidence of early childhood and baby bottle
tooth decay. The conferees are supportive of these efforts.
Centers for Disease Control and Prevention
Disease Control, Research, and Training
The conference agreement includes $3,868,027,000 for
disease control, research, and training instead of
$3,386,369,000 as proposed by the House and $3,251,996,000 as
proposed by the Senate.
The conference agreement includes $175,000,000 for
equipment, construction, and renovation of facilities as
proposed by the Senate instead of $145,000,000 as proposed by
the House. The conference agreement includes bill language to
allow CDC to enter into a single contract or related contracts
for the full scope of development and construction of
facilities as proposed by the Senate. The House bill provided
this authority only for laboratory building 18.
The conference agreement includes a total of $97,354,000
for the National Center for Health Statistics instead of
$86,759,000 as proposed by the House and $105,110,000 as
proposed by the Senate. The conference agreement also includes
bill language designating $71,690,000 of the total to be
available to the Center under the Public Health Service Act one
percent evaluation set-aside as proposed by the House instead
of $91,129,000 as proposed by the Senate.
The conference agreement includes bill language to allow
funds recouped from fiscal years 2000 and 2001 obligations for
the influenza vaccine stockpile to be used in fiscal year 2001
for childhood vaccine purchase.
The conference agreement does not include language
proposed by the Senate to allow funds made available for
section 317A of the Public Health Service Act to be used at
Early Head Start program sites. The House bill contained no
similar provision.
The conference agreement consolidates the salaries and
expenses of CDC into a single account. Salaries and expenses
activities encompass all non-extramural activities with the
exception of program support services, centrally managed
services, and buildings and facilities. The agency may allocate
administrative funds for extramural program activities
according to its judgment. Funds should be apportioned and
allocated consistent with the table, and any changes in funding
are subject to the normal notification procedures.
The conference agreement includes $175,969,000 for the
prevention health services block grant instead of $175,964,000
as proposed by the House and $175,124,000 as proposed by the
Senate. Within the total provided, $44,225,000 is for rape
prevention and education activities previously funded through
the Crime Trust Fund.
The conference agreement includes $23,012,000 for
prevention centers instead of $23,000,000 as proposed by the
House and $14,080,000 as proposed by the Senate.
The conferees include $700,000 for the Roger Williams
Medical Center Healthlink program in Providence, Rhode Island
to develop and implement a comprehensive health promotion
initiative for senior retirees.
The conference agreement includes $529,461,000 for
childhood immunization instead of $472,966,000 as proposed by
the House and $499,005,000 as proposed by the Senate. Included
in this amount is an increase of $42,487,000 for operation/
infrastructure activities, $5,000,000 for global polio
eradication activities, and $20,000,000 for vaccine purchase.
The conferees intend that funds available for vaccine purchase
are for all currently licensed and recommended vaccines. In
addition, the Vaccines for Children (VFC) program funded
through the Medicaid program is expected to provide
$469,054,000 in vaccine purchases and distribution support in
fiscal year 2001, for a total program level of $1,016,528,000.
The conferees recommend that CDC discontinue immunization
incentive grants and that CDC award the $33,000,000 previously
committed for this program as part of the entire operations
funding to support State grantees cumulative core budgets.
Incorporating incentive grants into States' base operations
award would allow more States to receive a greater proportion
of their core budget and help improve their overall
immunization coverage levels. The conferees recommend that CDC
use grant funding made available due to the completion of
Congressionally-directed demonstration projects to ensure that
all States receive at least the same level of operational
funding received in fiscal year 2000, thereby holding them
harmless during this funding shift from a formula based
approach.
Funding for measles vaccine for supplemental measles
immunization campaigns and epidemiological, laboratory, and
programmatic/operational support to the World Health
Organziation and its member countries is included in measles
eradication funding not polio eradication funding as identified
in the Senate report.
The conference agreement includes $767,246,000 for HIV/
AIDS instead of $673,367,000 as proposed by the House and
$640,000,000 as proposed by the Senate. Included in this amount
is an additional $3,000,000 to maintain the current hematologic
and blood safety program commitments and to expand support for
the treatment centers network in carrying out initiatives to
address the complications of hemophilia, including HIV/AIDS,
blood safety surveillance and monitoring, and the needs of
women with bleeding disorders.
The conferees recognize the devastating impact of the
global AIDS epidemic upon individuals, families and communities
in Africa and Asia and have included $104,527,000 for global
HIV/AIDS activities at CDC, which shall be available until
September 30, 2002. This amount is an increase of $69,527,000
over the fiscal year 2000 appropriation. With funding received
in fiscal year 2000, CDC, in collaboration with USAID and other
federal agencies, has begun to combat the AIDS epidemic in 14
of the hardest hit countries in Africa and in India. The
conferees urge CDC to continue to work in collaboration with
USAID and other departments such as the Department of Defense
and the Department of Labor, and other DHHS agencies especially
HRSA, as well as international agencies, non-governmental
organizations and country governments to halt the spread of the
epidemic and lessen its impact. In those countries where CDC
already has a presence, CDC, in collaboration with USAID and
HRSA, should assist in implementing country-wide care and
prevention programs. This will include partnering with HRSA to
develop health care services focused on mobilizing communities
for the development of palliative care, basic treatment, and
support services. In addition, CDC should begin to assist other
areas at high risk for severe epidemics including other African
countries, Southeast Asia, and the Caribbean/Latin American
region. Finally, CDC should support targeted anti-retroviral
treatment demonstration projects in countries where sufficient
care and treatment infrastructures exist. Within the total for
international HIV/AIDS activities, the conferees provide
$3,000,000 through CDC to support HRSA activities aimed at
improving professional education and training relating to this
initiative. The conferees have also included language to extend
certain authorities of the Department of State to the Secretary
of HHS so that CDC may use State's administrative systems for
personnel, contracting and procurement, and for limited
renovation or construction of essential program facilities.
As a preventive vaccine offers the world's best hope for
turning the tide against the global AIDS pandemic, and since
international collaborations are essential for this goal, the
conferees encourage CDC to work collaboratively with the
International AIDS Vaccine Initiative and other global
organizations to accelerate the development and testing of
promising vaccine candidates.
The conferees have provided additional funds to respond
to the unmet needs identified through the community planning
process. These funds are to augment the cooperative agreements
between CDC and State and local health departments.
The conferees recommend that CDC allocate an increase to
evaluate HIV prevention service delivery programs to improve
funding decision-making and to implement more rapid effective
transfer of technology to community based service delivery
organizations and health departments. Approximately half of
this amount should support evaluation activities to track
service delivery by community based organizations, and utilize
cost-effectiveness analysis in HIV prevention. The remaining
funds would be used to expand technology transfer regarding HIV
prevention through activities such as regional technical
assistance, technology transfer, and training for the purpose
of providing links between evidence-based HIV prevention
science and public health departments, community planning
groups, healthcare providers, and prevention science providers.
The conference agreement includes $88,000,000 to fund CDC
activities that are designed to address the trend of the HIV/
AIDS epidemic in communities of color, based on the most recent
estimated living AIDS cases, HIV infections and AIDS mortality
among ethnic and racial minorities as reported by the CDC. The
program initiative includes funds for the ''Know Your Status''
campaign. The conferees have included funds for the Directly
Funded Minority Community Based Organization program to fund
grant applications from minority organizations with a history
of providing services to communities of color to develop and
expand HIV prevention interventions and services targeted to
highly impacted minority men, women, youth and sub-populations.
Funds are also included to create grants under the CDC
Community Development Program to support needs assessments and
enhance community planning processes to integrate HIV, STD, TB,
substance abuse prevention and treatment, care and community
development within communities of color. Funds are to be
allocated for technical assistance programs for grantees under
the Directly Funded Minority CBO program, for Faith-Based
Initiative Programs including community based organizations
interested in developing coalitions and partnerships with faith
based institutions. Funds are also provided for CDC's HIV
surveillance activities to better track the epidemic and target
resources. These funds are to be allocated based on program
priorities identified in the previous fiscal year as well as
new priorities.
The conference agreement includes $126,528,000 for
tuberculosis (TB) instead of $120,364,000 as proposed by the
House and $113,413,000 as proposed by the Senate. The conferees
intend that the increase over the President's request be used
to reduce the number of foreign born TB cases contributing to
the U.S. caseload, strengthen domestic TB control programs, and
provide preventive therapy to individuals who have latent TB
infection and are high-risk for developing active, infectious
TB.
The conferees include $184,000 for Onondaga County, New
York Health Department to establish a prospective tuberculosis
control program for Central New York industries.
The conference agreement includes $148,256,000 for
sexually transmitted diseases instead of $136,743,000 as
proposed by the House and $135,978,000 as proposed by the
Senate. The conferees provide $6,000,000 over fiscal year 2000
funding for chlamydia and $14,934,000 over fiscal year 2000
funding for syphilis. Except for the administrative
contribution required by CDC, all of this increase for
chlamydia must be spent on appropriate services to patients to
prevent chlamydia infections using the existing partnership
between STD and family planning. The conferees recognize that
given the problem of re-infection and other factors, some of
these funds may be utilized to provide screening and treatment
to males as deemed appropriate by CDC.
The conference agreement includes $417,039,000 for
chronic and environmental diseases instead of $317,374,000 as
proposed by the House and $319,553,000 as proposed by the
Senate. Programs within this account are funded (including
salaries and expenses) at the following levels:
Environmental Disease Prevention:
Arctic populations.................................. $390,000
Asthma.............................................. 27,906,362
Autism.............................................. 6,734,000
Birth defects....................................... 17,608,000
Disabilities prevention............................. 15,276,000
Environmental lab and health activities............. 46,593,117
Fetal alcohol syndrome.............................. 9,551,843
Folic Acid.......................................... 2,500,000
Hanford Study....................................... 1,679,000
Limb Loss........................................... 3,352,000
Mild mental retardation............................. 4,396,000
Newborn Hearing Screening........................... 6,315,576
Pfisteria........................................... 9,081,000
Radiation........................................... 1,949,000
Spina bifida........................................ 2,155,000
Volcanic emissions.................................. 97,000
--------------------------------------------------------
____________________________________________________
Subtotal, Environmental........................... 155,583,898
Chronic Disease Prevention & Health Promotion:
Arthritis and healthy aging......................... 11,889,000
Behavior risk factor surveillance................... 1,918,000
Cancer registries................................... 36,434,297
Cardiovascular diseases............................. 35,038,825
Chronic fatigue syndrome............................ 7,000,000
Colorectal cancer................................... 8,901,345
Community health promotion.......................... 7,164,000
Comprehensive cancer control........................ 3,096,000
Diabetes............................................ 58,344,038
Epilepsy............................................ 4,074,255
Iron overload....................................... 495,000
Nutrition/Physical activity......................... 16,222,438
Oral health......................................... 8,460,000
Prevention of teen pregnancies...................... 13,258,000
Prostate cancer..................................... 11,173,000
School health program............................... 9,775,000
Skin cancer......................................... 1,647,000
Tobacco (smoking and health)........................ 103,355,034
Women's health...................................... 1,500,000
Ovarian cancer...................................... 2,625,870
--------------------------------------------------------
____________________________________________________
Subtotal, Chronic................................. 342,371,102
Consolidated program administration................. -80,916,000
--------------------------------------------------------
____________________________________________________
Total, Chronic & Environmental.................... 417,039,000
Within the total provided for arthritis, the conferees
urge CDC to continue research, surveillance, and health
communication efforts, including the impact of lupus on women,
within the framework of the National Arthritis Action Plan.
Within the total provided for cardiovascular diseases,
the conferees expect CDC to enhance professional and public
awareness outreach activities on pulmonary hypertension.
Within the total provided for nutrition/physical
activity, the conferees expect CDC to address overweight,
obesity, nutrition, and sedentary lifestyles by supporting
state-based programs, by training health professionals to
recognize the signs of obesity and recommend prevention
activities, by educating the public concerning overweight or
obesity through public education campaigns, and by developing
strategies for use at worksites and in community health and
other community settings.
Native American populations have a diabetes rate of four
times the national average with Hispanics following a close
second. The conferees urge CDC to fund pilot projects to
examine nutrition and prevention protocols for these
populations.
The conferees look forward to the completion of the
evidence-based report being developed by CDC and the Agency for
Healthcare Research and Quality that will assess the elements
of epilepsy treatment as they relate to clinical outcomes. CDC
is expected to disseminate the findings of this report to
people with epilepsy, health care professionals, and the
general public. The Director should be prepared to provide the
next steps required to implement an early intervention strategy
including diagnosis, treatment, and referral recommendations at
the fiscal year 2002 appropriations hearing.
The conferees are encouraged that CDC plans to convene a
meeting to develop a national prostate cancer public health
agenda. The conferees urge the agency to continue its work with
voluntary public and professional organizations to develop and
implement a national educational and outreach campaign with
special attention to minority and under served populations. CDC
should be prepared to report on its prostate cancer programs at
the fiscal year 2002 appropriations hearing.
The conferees urge CDC to give full and fair
consideration to a proposal to develop a diversified screening
demonstration project with the Dean and Betty Gallo Prostate
Cancer Center at the Cancer Center of New Jersey and the Men's
Health Network designed to determine effective methods for
encouraging men in the underserved population to participate in
colorectal screening and screening for other high risk
diseases.
The conferees urge CDC to provide additional support for
Johns Hopkins University to develop the Center for Limb Loss
Research.
The conferees include the following amounts for the
following projects and activities in fiscal year 2001.
Within the total provided for asthma, $213,000 is for the
Buffalo General Foundation, Buffalo, New York, for a study
examining the impact of air pollution on asthma rates and
respiratory illness and $921,000 is for Forum Health of
Youngstown, Ohio for a pediatric/adolescent asthma school
program.
Within the total provided for autism, $313,000 is for the
Marshall University autism center in Huntington, West Virginia;
$921,000 is for the New Jersey Epidemiologic Surveillance and
Integration Center for Children with Autism; and $3,000,000 is
for the Center of Excellence in Autism.
Within the total provided for birth defects, $147,000 is
for the Birth Defects Monitoring and Prevention Center at the
University of South Alabama and $461,000 is for the University
of Louisville Craniofacial Birth Defects Research Center.
Within the total provided for cardiovascular diseases,
$46,000 is for the Sisters of Charity Health Care System and
Staten Island University Hospital's Heart Center; $500,000 for
the Michael DeBakey Institute for Comparative Cardiovascular
Science; $929,000 is for the Kettering Medical Center Healthy
Hearts 2001 Initiative; and $4,500,000 is for The Paul
Coverdell National Acute Stroke Registry to track and improve
the delivery of care to patients with acute stroke. The
conferees direct CDC to consult with the National Institute for
Neurological Disorders and Stroke at the National Institutes of
Health, the Brain Attack Coalition, and other professional
organizations experienced in the treatment of stroke, in
developing specific data points for collection as well as
appropriate benchmarks for analyzing care. The conferees
further direct CDC to include hospitals, universities, state
and local health departments, and other appropriate partners to
design and pilot test prototypes, that will measure the
delivery of care to patients with acute stroke in order to
provide real-time data and analysis to reduce death and
disability from stroke and improve the quality of life for
acute stroke survivors.
Within the total provided for colorectal cancer, $184,000
is for the Sisters of Charity Health Care System to ensure that
patients have access to early detection of gastro-intestinal
cancers.
Within the total provided for community health promotion,
$553,000 is for the Baltimore City Health Department, Maryland,
to establish a Center for Chronic Diseases and $900,000 is for
the University of Texas, Dallas, for the Southwestern Medical
Center, National Multiple Sclerosis Training Center.
Within the total provided for comprehensive cancer
control, $425,000 is for Miami-Dade County, Florida for the
Health Choice Network to administer the Jesse Trice Cancer
Prevention Project; $921,000 is for an Appalachian cancer
demonstration project at the East Tennessee State University
James H. Quillen College of Medicine to address cancer care in
the rural Appalachian region; $900,000 is for the University of
Rhode Island Cancer Prevention Research Center to provide
interactive interventions of at-risk populations; and $850,000
is for the University of Texas M.D. Anderson Cancer Center in
Houston, Texas, for a comprehensive cancer control program to
address minority and medically undeserved populations.
Within the total provided for diabetes, $230,000 for the
Fresno Community Hospital and Medical Center to support a
minority-focused diabetes outreach program; $213,000 is for the
Diabetes-Endocrinology Center of Western New York in Buffalo
for community education and outreach efforts to improve the
early detection, prevention and control of diabetes; $276,000
is for a comprehensive diabetic research, education and
treatment program at Louisiana State Health Sciences Center in
Shreveport; $425,000 is for the University of Puerto Rico to
support surveillance, prevention research and education
programs at the center for diabetes in Puerto Rico; $1,000,000
is for the National Diabetes Prevention Center in Gallup, New
Mexico to continue the prevention center for American Indians;
and $1,843,000 is for the Center for Diabetes and Prevention
Control at Texas Tech University Health Sciences Center to
provide a national model of diabetes outreach, education,
prevention and care.
Within the total provided for disabilities prevention,
$3,000,000 is to establish a paralysis information and support
center with the Christopher Reeve Paralysis Foundation and to
enhance efforts on the prevention of secondary complications to
improve outcomes and the quality of life for people living with
paralysis.
Within the total provided for environmental health
activities, $213,000 is for the San Antonio Metropolitan Health
District to expand an assessment of human exposure to
environmental contaminants near Kelly Air Force Base, Texas;
$400,000 is for the establishment of a National Mass Fatalities
Training Response Center, at Kirkwood Community College in
Cedar Rapids, Iowa; $500,000 is for the State of Alaska's
Department of Health and Social Services to study environmental
contaminants; $850,000 for a joint United States/Vietnamese
study on the effects of agent orange; $850,000 for the
University of North Carolina at Chapel Hill to support
additional research on animal modeling of chronic human
diseases such as cancer, fibrosis, hypertension, and other
diseases; and $1,800,000 for the Center for Environmental
Medicine and Toxicology at the University of Mississippi
Medical Center in Jackson, Mississippi.
Within the total provided for nutrition/physical
activity, $250,000 is for the National Youth Fitness and
Obesity Institute at the University of Northern Iowa; $298,000
is for the University of North Carolina at Greensboro, North
Carolina, Institute for Health, Science and Society for the
Children's Healthy Life Skills Initiative; and $461,000 is for
the Grenada Lake Medical Center in Grenada, Mississippi to
conduct a demonstration on physical fitness in rural areas.
Within the total provided for school health program,
$140,000 is for Proviso East High School in Maywood, Illinois
in collaboration with Loyola University of Chicago and the Cook
County Board of Health to improve the delivery of on-site
primary care, preventive care, and health outreach to low-
income parents and students in the community.
Within the total provided for tobacco, $900,000 is for
the University of Rhode Island Tobacco Cessation Program to
compare media and policy interventions on smoking cessation and
adoption of no smoking policies in the home.
The conference agreement includes $173,928,000 for breast
and cervical cancer screening instead of $160,941,000 as
proposed by the House and $167,016,000 as proposed by the
Senate. The conference agreement includes bill language to
allow the agency to expand the WISEWOMAN program to not more
than 15 States as proposed by the Senate. The House bill
allowed the agency to expand the program to not more than 10
States.
The conferees urge the CDC to give full and fair
consideration to proposals from Access Community Health Network
in Chicago for delivering breast and cervical cancer screening
and follow-up services to minority women.
The conferees include the following amounts for the
following projects and activities in fiscal year 2001:
--$92,000 to evaluate the high incidence of breast cancer
in DuPage County, Illinois;
--$213,000 for Marin County, California to evaluate the
high incidence of breast cancer in the San Francisco Bay Area;
--$1,671,000 for the Healthcare Association of New York
State for a breast cancer demonstration project to develop an
integrated model for the delivery of comprehensive breast
cancer services in a coordinated setting.
The conference agreement includes $181,701,000 for
infectious diseases instead of $111,622,000 as proposed by the
House and $112,000,000 as proposed by the Senate. Within the
total provided, $25,000,000 is for the establishment of
partnerships between CDC and academic institutions and State
and local public health departments to carry out pilot programs
for antimicrobial resistance detection, surveillance, education
and prevention, and to conduct research on resistance
mechanisms and new or more effective antimicrobial compounds.
The conferees commend CDC for its initiative to work with
hospitals in identifying and responding to the risk of
hospital-acquired infections and the emergence of antimicrobial
resistance in the pediatric population, including its
successful development of the largest hospital-based infection
control network in the country. The conferees encourage CDC to
continue its effort to work with pediatric hospital networks to
improve infection control efforts for children, particularly
high-risk children.
Within the total provided, $25,000,000 is to continue
planned activities and to expand efforts to control the West
Nile virus, an increase of $20,000,000 above the President's
request. The conferees direct CDC to ensure an equitable
distribution of these funds based on the impact of the West
Nile virus in particular states and localities during calendar
year 2000. The criteria should include: the date of first
positive findings, intensity of wildlife transmission,
occurrence of human illness, geographic extent of positive
findings, laboratory testing/activities, and employment of
control measures, including spraying.
Also within the total provided is $34,577,000 for NEDSS/
EID and an increase of $4,000,000 for malaria programs.
The conferees urge CDC to give full and fair
consideration to a proposal by Advance Paradigm to demonstrate
the role of provider utilization of information technology to
improve patient safety through management of polypharmacy
outcomes.
The conferees include the following amounts for the
following projects and activities in fiscal year 2001:
--$149,000 for Case Western Reserve University,
Cleveland, Ohio for prion disease surveillance;
--$250,000 for the Institute for Clinical Evaluation for
the reduction of medical errors through the development and
demonstration of virtual reality medical technology simulation
for training health care workers in medical procedures;
--$300,000 for the Fletcher Allen Health Care,
Burlington, Vermont for a demonstration to reduce medical
errors;
--$500,000 for the Iowa Department of Public Health for a
demonstration to identify and develop strategies to reduce
adverse medical events;
--$961,000 for the University of Texas Medical Branch,
Galveston, Texas, Tyler Border Infectious Disease Monitoring
Program;
--$921,000 for the Emerging Infectious Diseases Center at
the University of New Mexico in Albuquerque to develop a
network-based surveillance system; and
--$1,843,000 to develop a comprehensive, statewide
electronic public health reporting system in the State of
Delaware.
The conference agreement includes $34,933,000 for lead
poisoning prevention instead of $31,019,000 as proposed by the
House and $30,978,000 as proposed by the Senate. CDC is
encouraged to work with Early Head Start in developing a
strategy identify and target resources for childhood lead
poisoning prevention to high-risk populations.
The conference agreement includes $77,332,000 for injury
control instead of $66,298,000 as proposed by the House and
$69,000,000 as proposed by the Senate.
The conferees have provided an additional $3,000,000 for
CDC to strengthen its focus on violence by supporting
initiatives directed at the prevention of physical and
emotional injuries associated with child abuse and neglect. The
conferees note that CDC convened a group of experts on child
maltreatment to identify future directions for prevention.
Increased funds are provided to begin to improve information on
child maltreatment through mechanisms such as state-based
surveillance, the development of uniform definitions, and
survey information from victims and perpetrators. The conferees
also support the evaluation and dissemination of effective
interventions and urge CDC to develop and distribute an
evaluation primer, a resource guide for evaluated child
maltreatment interventions, and educational materials on child
maltreatment prevention.
The conferees include $2,000,000 to support a joint
effort by CDC and the Consumer Product Safety Commission to
identify products that contribute to common injuries. The
conferees understand that this effort includes collecting
information from hospitals that currently offer 24-hour trauma
service. The conferees agree that any research and/or study
undertaken shall address all products contributing to injuries
found in these areas and that all existing restrictions on CDC
funding and the Consumer Product Safety Commission apply to all
aspects of this effort.
CDC is urged to conduct evaluation research on
sleepiness, sleep deprivation, and injury prevention associated
with fatigue.
The conferees concur with Senate report language
regarding the development of population-based injury reporting
systems and recognize the efforts of the University of
Maryland, College Park.
The conferees include the following amounts for the
following projects and activities in fiscal year 2001:
--$92,000 for the Rebuild program at Inova Fairfax
Hospital that will enable trauma system doctors and nurses to
work effectively with the families of trauma victims;
--$200,000 for the National Children's Center of Rural
Agricultural Health;
--$250,000 for the American Trauma Society for a trauma
information and exchange program;
--$425,000 for the National SAFE KIDS Campaign,
Washington, DC to improve child health through parental
training and technical assistance in public housing sites and
communities;
--$750,000 for an Alaska Injury Prevention Center of
which $250,000 is for collaboration with the State of Alaska
Department of Health and Social Services and $500,000 is to
develop a statewide childhood injury prevention program;
--$850,000 for the Kennedy Krieger National Center for
Research on Behavior of Children and Youth, Baltimore, Maryland
for a youth violence prevention project; and
--$921,000 for the Save A Life Foundation to expand the
training of its basic life supporting first aid program.
The conference agreement includes $119,375,000 for the
national occupational safety and health program instead of
$86,346,000 as proposed by the House and $105,000,000 as
proposed by the Senate.
The conferees provide an increase over the request of
$10,000,000 for the National Occupational Research Agenda,
$9,000,000 for respirator research and personal protective
technology, and $1,000,000 for Education and Resource Centers.
The conferees urge NIOSH to be supportive of developing a
Pacific basin focus at the University of Hawaii at Hilo.
The conferees include $723,000 for Purdue University in
West Lafayette, Indiana, to support the Construction Safety
Alliance for a national program in construction safety and
health.
The conference agreement includes $174,851,000 for
epidemic services instead of $155,338,000 as proposed by the
House and $30,254,000 as proposed by the Senate. Within the
total provided, $125,000,000 is for a National Campaign to
Change Children's Health Behaviors as described in the House
report, including promoting mental health. The campaign is
designed to clearly communicate messages that will help kids
develop habits that foster good health over a lifetime. The
conferees expect the goals of the campaign will also address
the growing problem of obesity in this country. By displacing
the opportunity for young people to make bad choices during
after-school and weekend hours (such as being physically
inactive) with opportunities to engage in positive goal-
directed activities (such as sports and other physical
activity) the campaign will reduce the proportion of children
and adolescents who are overweight and obese.
The conferees commend CDC's leadership role in landmine
victim assistance programs and have provided an additional
$5,000,000 to support expansion of the landmine survivor
program as well as the partnership with the Landmine Survivors
Network to further develop peer support networks that address
the rehabilitative and socioeconomic needs of landmine victims
in mine affected countries.
The agreement includes $14,000,000 for the safe
motherhood initiative. The conferees urge CDC to further its
efforts to prevent deaths and complications during pregnancy
and reduce racial disparities, with special focus on
complications related to a lack of access to prenatal care and
community support.
The conferees include the following amounts for the
following projects and activities in fiscal year 2001:
--$9,000 for the Cross Road Foundation for a pilot
project to sponsor singles mother self-help groups to improve
parenting skills;
--$37,000 for Victory Memorial Hospital in Brooklyn, New
York to expand its prenatal program for uninsured, pregnant
women;
--$100,000 for the Northern New Jersey Maternal Child
Health Consortium;
--$184,000 for the Children's Hospital of Buffalo for
activities related to intestinal motility disorders in infants;
--$500,000 for the University Medical Center of Southern
Nevada for Maternal and Neonatal Intensive Care;
--$900,000 for Sudden Infant Death Syndrome Resources,
Inc., Missouri Bootheel Healthy Start project;
--$1,000,000 for the Prince George's County Health
Department for Infant Mortality Prevention;
--$1,020,000 for Jackson State University, Office of
Research and Development to establish an epidemiological
research institute;
--$1,704,000 is for the University of Arizona, College of
Public Health to continue comprehensive research and evaluation
of the unique public health risks along the U.S.-Mexico border;
and
--$3,001,000 for the Lawton and Rhea Chiles Center for
Healthy Mothers and Babies Friendly Access program to improve
the quality of perinatal health service delivery.
The conference agreement includes $13,593,000 for
prevention research as proposed by the House instead of
$13,386,000 as proposed by the Senate.
The conference agreement includes $35,009,000 for health
disparities demonstrations instead of $32,184,000 as proposed
by the House and $27,000,000 as proposed by the Senate.
The conference agreement includes $669,130,000 for
program administration instead of $648,774,000 as proposed by
the House and $626,228,000 as proposed by the Senate.
The conferees do not include language proposed by the
Senate to reduce administrative expenses of the CDC. The House
bill contained no similar provision.
National Institutes of Health
National Cancer Institute
The conference agreement includes $3,757,242,000 for the
National Cancer Institute instead of $3,793,587,000 as proposed
by the House and $3,804,084,000 as proposed by the Senate.
NCI is encouraged to take appropriate steps to take full
advantage of scientific opportunities that may be available
from using genealogical databases to understand, diagnose,
treat and prevent cancer and other diseases.
National Heart, Lung and Blood Institute
The conference agreement includes $2,299,866,000 for the
National Heart, Lung and Blood Institute instead of
$2,321,320,000 as proposed by the House and $2,328,102,000 as
proposed by the Senate.
The conferees support research on the interaction of
tuberculosis and AIDS conducted through the Institute's AIDS
research program and encourage enhanced research in this area.
The conferees also urge NHLBI to continue research and
development efforts in the area of polynitroxylated hemoglobin,
a blood cell substitute being developed to provide oxygen
carrying capacity and adequate blood flow to the critically
injured.
National Institute of Dental and Craniofacial Research
The conference agreement includes $306,448,000 for the
National Institute of Dental and Craniofacial Research instead
of $309,007,000 as proposed by the House and $309,923,000 as
proposed by the Senate.
The conferees are concerned about the exceptionally high
rate of severe dental caries suffered by American Indian
children and encourage NIDCR to support long-term research of
the etiology and pathogenesis of dental caries in these
populations. The conferees also encourage NIDCR to conduct
research on effective ways to control severe caries in American
Indian children through all available mechanisms, as
appropriate, including clinical trials.
national institute of diabetes and digestive and kidney diseases
The conference agreement includes $1,303,385,000 for the
National Institute of Diabetes and Digestive and Kidney
Diseases instead of $1,315,530,000 as proposed by the House and
$1,318,106,000 as proposed by the Senate.
The conferees are concerned that the urology research
effort is not addressing the large public health impact of
urological diseases and conditions. NIDDK is strongly urged to
enhance its research initiatives in urology.
The conferees encourage NIDDK to coordinate with the
Office of Dietary Supplements on their findings from the
chromium and diabetes nutrition conference held in November of
1999. The Institute is encouraged to enhance basic research
grants to examine cellular glucose metabolism and the factors
that influence that metabolism, especially the influence of
chromium-containing compounds on glucose receptors.
The conferees encourage NIDDK to expand research efforts
for treatments for mucopolysaccharidosis (MPS). The conferees
recognize the recent progress in some areas of MPS research,
however the persistent challenges in development of effective
treatments remain. NIDDK is encouraged to work with other
Institutes, especially NINDS and NICHD, to research effective
therapies.
The conferees are concerned regarding reports that
funding for two of the four recently established
Interdisciplinary Research Centers have been significantly
reduced. The conferees urge NIDDK, consistent with the PKD
Strategic Plan, to fully fund the four Interdisciplinary
Research Centers.
The conferees are pleased with the growth of the NIDDK
research portfolio on inflammatory bowel disease (IBD) and the
focus on IBD in several of the Institute's digestive diseases
centers. Moreover, several new initiatives are planned,
including efforts to create an IBD genetics consortium in
followup to a meeting NIDDK held in March 2000 on the genetics
of IBD. The conferees are hopeful that IBD will be one of the
diseases to be studied in the soon-to-be-established NIDDK
digestive diseases trial network. The conferees urge the
Institute to foster research on genetic, environmental and
other factors that offer promise of shedding light on the
underlying causes of immunologic abnormalities and inflammatory
mechanisms in IBD, and that may help point the way to more
effective therapeutic and preventive strategies.
national institute of neurological disorders and stroke
The conference agreement includes $1,176,482,000 for the
National Institute of Neurological Disorders and Stroke instead
of $1,185,767,000 as proposed by the House and $1,189,425,000
as proposed by the Senate.
The conferees are aware of the efforts of NINDS to
identify the gene that causes Mucolipidosis Type IV (ML-4), a
debilitating genetic metabolic disorder that prevents normal
development in children. The conferees encourage NINDS to
consider conducting workshops and expand research efforts in
this area.
The conferees urge NINDS to enhance research activities
on the development or adaptation of electrical stimulation
devices to activate the reflexes of the paralyzed muscles that
open the airway during breathing in cases of paralyzed vocal
cords due to trauma or neurodegenerative disease.
The conferees encourage NINDS to continue their
collaborative efforts with advocacy groups to develop
treatments for Friedreich's ataxia.
Recent advances in Spinal Muscular Atrophy (SMA) research
have found that activation of the SMN2 gene may benefit
treatment of SMA. The conferees urge NINDS to develop a SMA
basic and clinical research portfolio through all available
mechanisms, as appropriate, including clinical trials of drug
compounds capable of activating SMN2 expression. The conferees
also encourage the Institute to explore areas of promising
research identified in the 2000 Families of SMA International
Workshop.
Mitochondrial disorders comprise a panoply of
progressive, neurodegenerative syndromes affecting multiple
organ systems and causing mild to severe disabling neurological
complications. At present there is no cure or therapies that
are effective. It is recognized that adult onset disorders such
as Parkinson's, Alzheimer's, and Huntington's diseases may have
an associated mitochondrial defect. The conferees urge NINDS
and other relevant Institutes to explore the potential
applicability of promising new therapies for these diseases in
treating patients with mitochondrial disorders.
The conferees are pleased to note that progress continues
to be made both with respect to the treatment and in our
understanding of the cause of multiple sclerosis. Recent
studies have provided the best evidence to date that the
disease is caused by over-reactivity of a person's own immune
response. Based on these advances, the conferees encourage
NINDS to expand its efforts to test new, innovative therapies.
Research strategies should include the use of MRI and other
surrogate biomarkers to help determine the stage of the
disease, to evaluate effective treatments, and to improve
diagnosis.
National Institute of Allergy and Infectious Diseases
The conference agreement includes $2,043,208,000 for the
National Institute of Allergy and Infectious Diseases instead
of $2,062,126,000 as proposed by the House and $2,066,526,000
as proposed by the Senate.
National Institute of General Medical Sciences
The conference agreement includes $1,535,823,000 for the
National Institute of General Medical Sciences instead of
$1,548,313,000 as proposed by the House and $1,554,176,000 as
proposed by the Senate.
National Institute of Child Health and Human Development
The conference agreement includes $976,455,000 for the
National Institute of Child Health and Human Development as
proposed by the Senate instead of $984,300,000 as proposed by
the House.
The conferees are supportive of plans to conduct a
national longitudinal study of environmental influences on
children's health. The Director of NICHD is urged to establish
a consortium of representatives from appropriate Federal
agencies, including CDC, EPA and other NIH Institutes to plan
and initiate pilot studies that will provide the information
necessary to develop and implement the full national
longitudinal study. To this end, the conferees have provided
funds to support this initiative and look forward to learning
of the progress made during the fiscal year 2002 appropriations
hearing.
National Eye Institute
The conference agreement includes $510,611,000 for the
National Eye Institute instead of $514,673,000 as proposed by
the House and $516,605,000 as proposed by the Senate.
Recent progress in genetics research has opened up the
potential for gene-based approaches for the prevention and
treatment of retinal and other blinding diseases. Gene-based
therapies for several forms of retinal degeneration have been
successfully demonstrated in laboratory animal studies, and
preclinical work has satisfied patient safety and ethical
issues. The conferees urge NEI to accelerate the development of
these new gene-based approaches through all available
mechanisms, as appropriate, including clinical trials.
National Institute of Environmental Health Sciences
The conference agreement includes $502,549,000 for the
National Institute of Environmental Health Sciences instead of
$506,730,000 as proposed by the House and $508,263,000 as
proposed by the Senate.
The causes of breast cancer are largely unknown. There is
little agreement in the scientific community on how the
environment impacts breast cancer. While studies have been
conducted on the links between environmental factors like diet,
pesticides, and electromagnetic fields, no conclusive evidence
exists. The conferees encourage NIEHS to enhance research
efforts to study the links between the environment and breast
cancer through all available mechanisms, as appropriate,
including establishing centers of excellence.
National Institute on Aging
The conference agreement includes $786,039,000 for the
National Institute on Aging instead of $790,299,000 as proposed
by the House and $794,625,000 as proposed by the Senate.
National Institute of Arthritis and Musculoskeletal and Skin Diseases
The conference agreement includes $396,687,000 for the
National Institute of Arthritis and Musculoskeletal and Skin
Diseases instead of $400,025,000 as proposed by the House and
$401,161,000 as proposed by the Senate.
Osteogenesis Imperfecta (OI), more commonly known as
Children's Brittle Bone Disease, is a rare genetic disorder for
which there is presently no cure. The conferees strongly
encourage NIH to expand its support for research into the
causes, diagnosis, treatment, prevention, and eventual cure for
OI and to coordinate public research efforts with those
supported by the private sector. The Director of NIAMS should
be prepared to testify on this issue at the fiscal year 2002
appropriations hearing.
Important strides have been made with the establishment
of the Osteoporosis and Related Bone-Disease National Resource
Center. The conferees urge NIAMS to expand support for the
resource center's current activities, including developing and
disseminating information based on current research findings
that improve knowledge and understanding of the prevention,
diagnosis, and treatment of osteoporosis and related bone
diseases, implementing and evaluating model education programs
to enhance bone health and reduce future risk of osteoporosis,
and supporting public and private efforts to broaden the base
of knowledge about osteoporosis and related bone diseases.
The conferees commend NIAMS for its growing support of
research on rheumatic diseases of childhood, including the
recent opening of a new Pediatric Rheumatology Clinic on the
NIH campus. However, the conferees are concerned about the
cadre of pediatric rheumatologists who are trained to treat and
study these diseases. NIAMS is therefore encouraged to work
with the Secretary of HHS and other PHS components, as
appropriate, to assist in evaluating the status of the
pediatric rheumatology workforce. In particular, the Institute
is encouraged to take advantage of opportunities to support
loan repayment for researchers working in the area of childhood
rheumatic diseases.
National Institute on Deafness and Other Communication Disorders
The conference agreement includes $300,581,000 for the
National Institute on Deafness and Other Communication
Disorders as proposed by the Senate instead of $301,787,000 as
proposed by the House.
The conferees urge NIDCD to continue research on inner
ear hair cell regeneration with special emphasis on gene
delivery and gene transfer technology with specific relevance
to the inner ear and the development of improved hearing aids
and cochlear implants using digital processes. The conferees
also urge NIDCD to continue to recruit experts from the field
of molecular and cellular biology and genetics.
National Institute of Nursing Research
The conference agreement includes $104,370,000 for the
National Institute of Nursing Research instead of $102,312,000
as proposed by the House and $106,848,000 as proposed by the
Senate.
National Institute on Alcohol Abuse and Alcoholism
The conference agreement includes $340,678,000 for the
National Institute on Alcohol Abuse and Alcoholism instead of
$349,216,000 as proposed by the House and $336,848,000 as
proposed by the Senate.
National Institute on Drug Abuse
The conference agreement includes $781,327,000 for the
National Institute on Drug Abuse instead of $788,201,000 as
proposed by the House and $790,038,000 as proposed by the
Senate.
National Institute of Mental Health
The conference agreement includes $1,107,028,000 for the
National Institute of Mental Health as proposed by the Senate
instead of $1,114,638,000 as proposed by the House.
National Human Genome Research Institute
The conference agreement includes $382,384,000 for the
National Human Genome Research Institute instead of
$386,410,000 as proposed by the House and $385,888,000 as
proposed by the Senate.
National Center for Research Resources
The conference agreement includes $817,475,000 for the
National Center for Research Resources instead of $832,027,000
as proposed by the House and $775,212,000 as proposed by the
Senate. The conferees include a provision to waive the matching
requirement for the grant or contract to manage the 288
chimpanzees acquired by the Coulston Foundation. The House and
Senate bills contained no similar provision.
Within the total provided, $100,000,000 is for the
Institutional Development Awards (IDeA) program as proposed by
the House instead of $60,000,000 as proposed by the Senate. In
the implementation of these funds, the conferees concur with
the language contained in the House report. In addition, the
conferees believe that the General Clinical Research Centers
(GCRCs) are essential to furthering biomedical research
progress and have included funds for NCRR above the
Administration's request to permit an increase for GCRCs
commensurate with the overall NIH funding increase.
The conferees urge NCRR to use a portion of the increase
provided for a new competition of Science Education Program
Awards grants. The conferees further urge that these funds be
used consistent with language contained in last year's House
and Senate reports.
John E. Fogarty International Center
The conference agreement includes $50,514,000 for the
John E. Fogarty International Center instead of $50,299,000 as
proposed by the House and $61,260,000 as proposed by the
Senate.
National Library of Medicine
The conference agreement includes $246,801,000 for the
National Library of Medicine instead of $256,281,000 as
proposed by the House and $256,953,000 as proposed by the
Senate.
National Center for Complementary and Alternative Medicine
The conference agreement includes $89,211,000 for the
National Center for Complementary and Alternative Medicine
instead of $78,880,000 as proposed by the House and
$100,089,000 as proposed by the Senate.
The conferees are aware of the health benefits of
cranberries and cranberry juice products in maintaining urinary
tract health as well as their positive antibacterial and
antioxidant effects and believe that independent Federally-
funded research to test and/or validate these findings could
add to the arsenal of health-based and nutritional alternatives
to wellness. The conferees encourage NCCAM to study the health
benefits of cranberry products.
National Center on Minority Health and Health Disparities
While the overall health of the nation has improved over
the last two decades, there continues to be striking
disparities in the burden of illness and death experienced by
African Americans, Hispanics, Native Americans, Alaska Natives,
and Asian-Pacific Islanders. Moreover, the largest numbers of
medically underserved are white individuals, and many of them
have the same health and access problems as do members of
minority groups. Overcoming such persistent and perplexing
health disparities, and promoting health for all Americans,
ranks as one of our Nation's foremost challenges.
These disparities are believed to be the result of the
complex interaction among socioeconomic and biological factors,
the environment, and specific behaviors, as well as other
factors. While some of the causes of inequitable health
outcomes may be beyond the scope of biomedical research, the
conferees recognize that NIH has made research into health
disparities a high priority, and has already taken steps to
expand the role of research into why some minority groups have
disproportionately high rates of disease.
Congress recently passed and the President has signed the
Minority Health and Health Disparities Research and Education
Act of 2000. The Act established the National Center on
Minority Health and Health Disparities, which will enable NIH
to move ahead more rapidly toward its goal of elucidating the
factors that contribute to these disparities. The Center will
conduct and support research through grants to support programs
targeting diseases and conditions that disproportionately
affect minority groups and other populations with health
disparities. The Center will build on the work of the Office
for Research on Minority Health and the success of the Minority
Health Initiative, currently located in the NIH Office of the
Director. This will complement the ongoing research of the NIH
Research Institutes and Centers also aimed at reducing health
disparities. To emphasize the visibility of this new Center and
the importance of its research mission, the conferees have
included bill language providing $130,200,000 for the Center.
Office of the Director
(Including Transfer of Funds)
The conference agreement includes $213,581,000 for the
Office of the Director instead of $342,307,000 as proposed by
the House and $352,165,000 as proposed by the Senate. The
agreement includes a designation in bill language of
$48,271,000 for the operations of the Office of AIDS Research.
The conferees understand that with the funds allocated to NIH,
the NIH expects to provide $2,266,987,000 in AIDS research
funding.
The agreement includes funds within the Office of the
Director to address the trend of the HIV/AIDS epidemic in
communities of color. The Office is encouraged to expand and
strengthen science-based HIV prevention research for African
Americans, Latinos, Native Americans, Asian Americans, Native
Hawaiians and Pacific Islanders and consideration should be
given to the U.S. Virgin Islands and Puerto Rico. The Office is
also encouraged to expand existing culturally competent
behavioral research, conducted by minority principal
investigators, that seeks to break the link between HIV
infection and high risk behaviors and that seeks to decrease
the rate of mortality in targeted minority populations.
The conferees continue to be interested in matching the
increased needs of researchers who rely upon human tissue and
organs to study human diseases and to search for cures. The
conferees are aware of a recent review by a panel of experts
that found that there is a rapidly expanding and unmet demand
for the use of human tissue samples for research purposes. The
conferees encourage the Director of NIH to work with the
relevant Institutes to consider expanding support in this area
and request that the Director be prepared to report on its plan
to meet the demand for human tissue at the fiscal year 2002
appropriations hearing.
The conferees encourage NIH to consider establishing a
trans-NIH coordinating committee to focus on the lymphatic
system, with particular emphasis on lymphedema and related
lymphatic disorders.
The conferees are aware of concerns raised regarding the
progress of NIH research into fascioscapulohumeral muscular
dystrophy and fascioscapulohumeral disease and encourage NIH to
expand research in this area.
The conferees concur with the language contained in the
Senate report regarding microbicides research.
The conferees encourage NIA, NICHD, and NINDS to work
collaboratively to enhance research into Hutchison-Gilford
Progeria Syndrome, an illness that strikes children in their
first year causing them to age rapidly and prematurely and for
which the average life expectancy is 13 years.
The NIH has developed a five-year Parkinson's Disease
Research Agenda. To carry out the plan, the professional
judgement budget estimates call for increases over existing
Parkinson's research of $71,400,000 in year one (fiscal year
2001). The conferees strongly urge the Director to work toward
implementation of the research agenda and oversee coordination
of all relevant Institutes, including NINDS, NIEHS, NIA, and
others conducting Parkinson's research. The Director is
requested to report by March 1, 2001 on the progress towards
implementation of the research agenda and to submit updated
professional judgement funding projections for subsequent
years.
The conferees concur with the language in the Senate
report regarding a study of the structure of NIH and expect to
receive a report and recommendations one year from the date of
confirmation of the new NIH Director.
The conferees have been made aware of the public interest
in securing an appropriate return on the NIH investment in
basic research. The conferees are also aware of the mounting
concern over the cost to patients of therapeutic drugs. By July
2001, based on a list of such therapeutic drugs which are FDA
approved, have reached $500,000,000 per year in sales in the
United States, and have received NIH funding, NIH will prepare
a plan to ensure that taxpayers' interests are protected.
The Office of Dietary Supplements is urged to research
the relationship between chromium deficiencies and diabetes in
Native Americans through all available mechanisms, as
appropriate, including clinical trials.
The number of Americans taking dietary supplements
containing ephedra has risen dramatically. The conferees
encourage the Office of Dietary Supplements to enhance clinical
research on the safety and efficacy of these products.
The conferees urge NIH to minimize the use of non-human
animals in nicotine or tobacco experiments, and is encouraged
to explore any non-human research methods that are currently
available or under development that may be used as an
alternative to using non-human animals.
The conferees are concerned about the transfer of HIV
prevention interventions that have proven to be effective to
service programs supported by other federal agencies, such as
CDC and HRSA. The Office of AIDS Research (OAR) should work
with the ICs to increase NIH efforts in this area through the
establishment of programs for regional technical assistance,
technology transfer, and training for the purpose of providing
links between evidence-based HIV prevention science and public
health departments, community planning groups, healthcare
providers, and prevention service providers.
The conferees strongly urge NIH to implement an
intensified research effort regarding autism consistent with
the Children's Health Act of 2000. The Director of NIH should
also provide a report to the House and Senate Appropriations
Committees by March 1, 2001 regarding a plan for establishing
the Centers of Excellence on Autism Program authorized in the
Children's Health Act of 2000.
The conferees commend the Office of AIDS Research for
convening an external review of the Centers for AIDS Research
Program and for the five year plan to increase the number of
Centers. However, the conferees urge the NIH to consider ways
in which the five year plan can be modified to balance the need
to expand the number of Centers with the need to adequately
support the leading AIDS research institutions with the core
center mechanisms that they need to efficiently pursue AIDS
research.
The conferees encourage NIH to pursue recommendations
from the Diabetes Research Working Group to address the
specific needs of minority populations.
The conferees are aware of the National Institute of
Child Health and Human Development's (NICHD) efforts to
establish a Perinatology Research Branch (PRB) to conduct
research programs on pregnancy and perinatology in the greater
metropolitan region of the District of Columbia. After several
attempts, the conferees understand that NICHD now intends to
hold a nationwide competition for a site for the PRB. The
Director is requested to submit a written report by March 1,
2001, explaining why the efforts to establish the PRB in the
greater metropolitan region of the District of Columbia have
to-date been unsuccessful. The District of Columbia has the
highest rate of infant mortality in the United States, the
highest rate of infants born with low birthweights, and the
lowest percentage of mothers receiving early prenatal care.
Therefore, the report should include possible alternative
methods for conducting research programs on pregnancy and
perinatology in the greater metropolitan region of the District
of Columbia.
The conferees believe it appropriate for NIH to recognize
Paul Rogers' numerous contributions to the public health and
medical research. Therefore, the conferees urge the Director to
designate the plaza in front of the James Shannon building on
the NIH campus as the Paul G. Rogers Plaza and to commemorate
it in his honor.
The conferees appreciate the efforts of the Director to
ensure that NLM's future physical needs are met and encourage
that sufficient funds be made available from within NLM funding
to meet these needs.
Buildings and Facilities
The conference agreement includes $153,790,000 for
buildings and facilities instead of $178,700,000 as proposed by
the House and $148,900,000 as proposed by the Senate.
Substance Abuse and Mental Health Services Administration
Substance Abuse and Mental Health Services
The conference agreement includes $2,958,001,000 for
substance abuse and mental health services instead of
$2,727,626,000 as proposed by the House and $2,730,757,000 as
proposed by the Senate. Within the funds provided, the
conferees intend that $15,000,000 is to carry out the fetal
alcohol syndrome prevention and services program.
Center for Mental Health Services
The conference agreement includes $420,000,000 for the
mental health block grant instead of $416,000,000 as proposed
by the House and $366,000,000 as proposed by the Senate.
The conference agreement includes $91,763,000 for
children's mental health instead of $86,763,000 as proposed by
both the House and Senate.
The conference agreement includes $36,883,000 for grants
to states for the homeless (PATH) as proposed by the Senate
instead of $30,883,000 as proposed by the House.
The conference agreement includes $30,000,000 for
protection and advocacy instead of $24,903,000 as proposed by
the House and $25,903,000 as proposed by the Senate. The
conferees continue to be concerned about deaths and serious
injuries due to the inappropriate use of seclusion and
restraints in facilities that treat individuals with mental
illnesses and have provided additional resources so that these
deaths can be investigated and future incidences can be
prevented.
The conference agreement includes $203,674,000 for
programs of regional and national significance instead of
$132,749,000 as proposed by the House and $146,875,000 as
proposed by the Senate.
Within the total provided, $90,000,000 provided under
section 581 of the Public Health Service Act is for the support
and delivery of school-based and school-related mental health
services for school-age youth. It is intended that the
Department will continue to collaborate its efforts with the
Department of Education to develop a coordinated approach. The
conferees recognize it may be necessary for the agency to
allocate additional resources to the Safe Schools/Healthy
Students Action Center to expand its technical assistance to
serve new grantees.
Within the total provided, $3,000,000 is for suicide
prevention hotlines. The conferees direct SAMHSA to undertake
an evaluation of the effectiveness of these hotlines in
preventing suicides.
The conferees believe that SAMHSA is uniquely qualified
to support a clearinghouse for youth suicide prevention,
including a database and related files of reference materials
and organizations. SAMHSA, through this clearinghouse, could
provide training and technical assistance to States to
implement the Surgeon General's recommendations for suicide
prevention.
Within the total provided, $10,000,000 is provided under
section 582 of the Public Health Service Act to support up to
22 grants to local mental health providers for the purposes of
developing knowledge of best practices and providing mental
health services to children and youth suffering from post
traumatic stress disorder as a result of having witnessed or
experienced a traumatic event. Grantees can include psychiatric
hospitals, general hospitals, outpatient mental health clinics,
and community and university-based mental health programs. With
respect to grants for knowledge development, preference should
be given to applicants with experience in the field of trauma
related mental disorders in children and youth.
Within the total provided, $2,000,000 is to support
professional training in restraints and seclusion in
residential and day treatment centers for children and youth.
This training initiative will support grants to non-profit and
public entities for the purpose of developing and demonstrating
the effectiveness of a best-practices training model to avoid
the inappropriate use of restraints and seclusion.
The conferees are supportive of efforts to develop a
model training demonstration project to help eliminate deaths
and injuries that occur in mental health facilities due to the
inappropriate use of seclusion and restraints. Such a model
training program should emphasize conflict resolution and de-
escalation.
Within the total provided, an increase of $2,000,000 is
to provide additional support for minority fellowships in
mental health.
Within the total provided, $7,000,000 is for the
treatment of mental health disorders related to HIV disease
including: dementia, clinical depression and the chronic,
progressive neurological disabilities that often accompany HIV
disease. These direct services grants provided to minority
community-based providers that operate in traditional and non-
traditional settings are designed to strengthen their capacity
to provide HIV related mental health services.
Funds are included to provide grants to local communities
to improve mental health screening and referrals in non-mental
health settings and continue support for jail diversion
programs for non-violent mentally ill offenders.
It is intended that funds used to make grants to States
for the purpose of developing data infrastructure will be used
for mental health only.
The conferees include the following amounts for the
following projects and activities in fiscal year 2001:
--$83,000 for the Hope Center in Lexington, Kentucky;
--$85,000 for Steinway Child and Family Services, Inc. in
Queens, New York for HIV/AIDS prevention;
--$100,000 for the American Trauma Society to support its
Second Trauma Program which helps train trauma system health
care professionals to assist individuals facing the shock of an
unexpected death or critical injury to their family members;
--$200,000 for the Concord-Assabet Family Services Center
for a model transitional living program for troubled youth;
--$325,000 for Preschool Anger Management, Family
Communications;
--$500,000 for the Life Quest Community Mental Health
Center in Wasilla, Alaska;
--$680,000 for Pacific Clinics in Arcadia, California, to
support a school-based mental health demonstration program for
Latina adolescents in partnership with community groups, mental
health agencies, local governments and school systems in
Southeast Los Angeles county;
--$803,000 for the Bert Nash Community Mental Health
Center in Lawrence, Kansas, to provide mental health services
in schools and other settings to prevent juvenile crime and
substance abuse among high-risk youth;
--$800,000 for the Alaska Federation of Natives for
innovative homeless mental health services in Alaska;
--$850,000 for the Iowa State University Extension to
develop a program which would provide outreach, training, and
counseling services in rural areas;
--$921,000 for the United Power for Action and Justice
demonstration project in Chicagoland area to end the cycle of
homelessness;
--$921,000 for a mentally ill offender crime reduction
demonstration in Ventura County, California to create the
building blocks for a continuum of care for mentally ill
offenders who enter the jail system in the county;
--$850,000 for the University of Connecticut for an urban
health initiative to improve mental health services to
underserved high-risk individuals living in urban public
housing;
--$1,007,000 for the University of Florida National Rural
Behavioral Health Center to train extension agents in crisis
intervention and stress management to better equip them to deal
with emotional and stress related problems;
--$1,500,000 for the Ch'eghutsen program in interior
Alaska; and
--$1,300,000 for the Alaska Federation of Natives to use
integrated community care to treat native Alaska children with
mental health disorders.
Center for Substance Abuse Treatment
The conference agreement includes $1,665,000,000 for the
substance abuse block grant instead of $1,631,000,000 as
proposed by both the House and the Senate.
The conference agreement includes $256,315,000 for
programs of regional and national significance instead of
$213,716,000 as proposed by the House and $249,566,000 as
proposed by the Senate. Within the total provided, $10,000,000
is to initiate grants to local non-profit and public entities
for the purpose of developing and expanding substance abuse
services for homeless persons.
The agreement includes $53,000,000 designed to provide
targeted service expansion and capacity building to minority,
community-based substance abuse treatment programs with a
history of providing services to communities of color severely
impacted by substance abuse and HIV/AIDS. The correlation
between addiction and HIV/AIDS is well documented. Injection
drug use alone still accounts for more than 20 percent of the
primary HIV infection risk for African American and Latino
adults. These funds are to be allocated based on program
priorities identified in the previous fiscal year and new
priorities. Funds are also included to enhance state and county
efforts to plan and develop integrated substance abuse and HIV/
AIDS treatment and prevention services to communities of color.
The conferees are supportive of the efforts of the
Sunshine Shelter for abused and neglected children in Natchez,
Mississippi in treating chemically dependent women and their
children and note that additional resources would allow the
Shelter to expand its outreach efforts.
The conferees include the following amounts for the
following projects and activities in fiscal year 2001:
--$100,000 for the Vermont Department of Health Office of
Alcohol and Drug Abuse Prevention to examine adolescent
residential treatment programs;
--$106,000 for Center Point, Inc., in Marin County,
California, to continue support for substance abuse and related
services for minority, homeless and other at risk populations;
--$200,000 for Green Door in Washington, D.C. to treat
minority consumers with substance abuse problems and mental
health issues;
--$250,000 for the Allegheny County Drug and Alcohol
Rehabilitation Program;
--$500,000 for the Cook Inlet Council on Alcohol and Drug
Abuse Treatment;
--$500,000 for the House of Mercy in Des Moines, Iowa to
support treatment programs for pregnant and post-partum women;
--$500,000 for the State of Wyoming to carry out an
innovative substance abuse prevention and treatment program;
--$425,000 for Humboldt County, California, to support
residential substance abuse and related services for women who
have children;
--$608,000 for the Hope Center in Lexington, Kentucky;
--$645,000 for the Grove Counseling Center in Winter
Springs, Florida for a demonstration project of effective youth
substance abuse treatment methods;
--$750,000 for the Fairbanks LifeGivers Pregnant and
Parenting Teens program;
--$900,000 for the Alaska Federation of Natives to
identify best substance abuse treatment practices;
--$1,105,000 for the City of San Francisco's model
``Treatment on Demand'' program for the homeless; and
--$2,210,000 for the Baltimore City Health Department to
use innovative methods to enhance drug treatment services.
Center for Substance Abuse Prevention
The conference agreement includes $175,145,000 for
programs of regional and national significance instead of
$132,742,000 as proposed by the House and $127,824,000 as
proposed by the Senate. Within the total provided, it is
intended that high-risk youth grants will at least be
maintained at last year's level.
The agreement includes $32,100,000 for grants to minority
community based organizations to implement programs that
strengthen substance abuse prevention capacity in communities
of color disproportionately impacted by the HIV/AIDS epidemic,
based on the most recent estimated living AIDS cases, HIV
infections and AIDS mortality among ethnic and racial
minorities as reported by the CDC.
The conferees include the following amounts for the
following projects and activities in fiscal year 2001:
--$85,000 for the City of Alexandria, Virginia, substance
abuse prevention demonstration program for high-risk Latino
youth;
--$213,000 for the Rock Island County Council on
Addiction in East Moline, Illinois, for a youth substance abuse
prevention program; and
--$500,000 for the Drug-free Families Initiative at the
University of Missouri, St. Louis.
The conferees have included sufficient funds to continue
the pregnant and post-partum substance abuse prevention
evaluations for both the Community Prevention Parnership of
Berks County, Inc. and the Family Planning Council of
Pennsylvania
Program Management
The conference agreement includes $79,221,000 for program
management instead of $58,870,000 as proposed by the House and
$59,943,000 as proposed by the Senate. Within the total
provided, $12,000,000 is for the National Household Drug
Survey.
The conferees include $3,278,000 in fiscal year 2001 to
continue testing the effectiveness of Community Assessment and
Intervention Centers in providing integrated mental health and
substance abuse services to troubled and at-risk children and
youth, and their families in four Florida communities. Building
upon successful juvenile programs, this effort responds
directly to nationwide concerns about youth violence, substance
abuse, declining levels of service availability and the
inability of certain communities to respond to the needs of
their youth in a coordinated manner. The total provided
includes, $2,000,000 for mental health special projects of
regional and national significance; $1,000,000 for substance
abuse treatment special projects of regional and national
significance; $500,000 for substance abuse prevention special
projects of regional and national significance; and $200,000
for program management.
The agreement includes a general provision proposed by
the Senate regarding the withholding of substance abuse funds.
The House bill contained no similar provision. The Synar
amendment was included as part of the SAMHSA reorganization
bill in 1992. The amendment and its implementing regulation
required States to reduce sales of tobacco to minors within a
negotiated period of time and if a State fails to meet its
goals, reduced its substance abuse prevention and treatment
block grant funding by 40 percent. The conferees are extremely
concerned that several States, after at least four years, are
not in compliance with the law and continue to seek an
exemption to the penalty requirement. It is the conferees
intention that this will be the last year exemption language
will be carried in an appropriations bill. SAMHSA is directed
to notify States of this intention and work with the affected
States to help them come into compliance.
Agency for Healthcare Research and Quality
Healthcare Research and Quality
The conference agreement includes $104,963,000 in
appropriated funds instead of $123,669,000 as proposed by the
House. The Senate bill did not provide a direct appropriation
for the agency, instead it proposed to fund the agency through
the evaluation set-aside.
The conference agreement designates $164,980,000 to be
available to the agency under the Public Health Service Act one
percent evaluation set-aside as proposed by the House instead
of $269,943,000 as proposed by the Senate.
The conferees are troubled by the recent Institute of
Medicine study which found that as many as 98,000 deaths are
caused by medical errors each year. The conferees have provided
an additional $50,000,000 to the agency to determine ways to
reduce medical errors. The conferees are supportive of a study
to determine the impact of extended work hours for registered
nurses on patient safety.
The agreement includes $10,000,000 for research that
investigates the relationship between the health care workplace
and its impact on medical errors and the quality of care
provided to patients. Efforts to restructure the health care
workplace, often in response to pressures to reduce costs,
suggest that work environment and processes have had an impact
on health and quality of workers' lives as well as the patients
for whom they care. As we have learned from the experience of
the aviation industry, reducing errors and promoting safety are
a result of improving workforce systems. Likewise, it is
important that workforce considerations be integrated into
efforts to reduce medical errors and promote patient safety.
The conferees believe that better understanding of these
workforce considerations will lead to improved workplace
practices and better outcomes for patients.
The conferees support the efforts of the Agency for
Healthcare Research and Quality, the National Institute for
Occupational Safety and Health, the Department of Labor, and
other agencies to work jointly and coordinate their work to
improve healthcare quality, patient safety, and worker safety
in health care facilities, through such activities as the
October 2000 jointly sponsored conference on ``Enhancing
Working Conditions and Patient Safety: Best Practices.'' The
conferees urge that such coordinated efforts be continued.
The conferees strongly urge the agency to enhance its
investigator-initiated research funding through all available
mechanisms, as appropriate.
Health Care Financing Administration
Program Management
The conference agreement includes $2,246,326,000 for
program management instead of $1,866,302,000 as proposed by the
House and $2,018,500,000 as proposed by the Senate. The House
bill assumed that the Administration's user fee proposal would
be enacted prior to conference. An additional appropriation of
$680,000,000 has been provided for the Medicare Integrity
Program through the Health Insurance Portability and
Accountability Act of 1996.
The conferees repeat language included in last year's
bill related to administrative fees collected relative to
Medicare overpayment recovery activities.
Research, Demonstration, and Evaluation
The conference agreement includes $139,311,000 for
research, demonstration, and evaluation instead of $55,000,000
as proposed by the House and $65,000,000 as proposed by the
Senate.
The agreement includes $50,000,000 for Real Choice
Systems Change Grants to states to fund initiatives that
establish specific action steps and timetables to achieve
enduring system improvements and to provide long term services
and supports, including community-based attendant care, to
eligible individuals in the most integrated setting
appropriate. Grant applications should be developed jointly by
the State and the Consumer Task Force. The Task Force should be
composed of individuals with disabilities from diverse
backgrounds, representatives from organizations that provide
services to individuals with disabilities, consumers of long-
term services and supports, and those who advocate on behalf of
such individuals. Grant-funded activities should focus on areas
of need as determined by the State and the Task Force such as
needs assessment and data gathering, strategies to modify
policies that unnecessarily bias provision of long term care
services to institutional settings or to health care
professionals, and training and technical assistance.
The agreement includes bill language for the following
projects and activities for fiscal year 2001:
--$300,000 for the United States-Mexico Border Counties
Coalition for a study to determine the unreimbursed costs
incurred to treat undocumented aliens for medical emergencies
in southwest border States, their border counties, and
hospitals within the jurisdiction of these States and counties;
--$255,000 for the LA Care Health Plan in Los Angeles,
California for a demonstration program to improve clinical data
coordination among Medicaid providers;
--$350,000 for the Cook County, Illinois Bureau of Health
for the Asthma Champion Initiative demonstration to reduce
morbidity and mortality from asthma in high prevalence areas;
--$500,000 to the University of Pittsburgh Medical Center
and University of Pennsylvania for a study of the efficacy of
surgical versus non-surgical management of abdominal aneurysms;
--$691,000 for a Medicare demonstration project at Ohio
State University to determine the benefits of compliance
packaging;
--$650,000 for the Vascular Surgery Outcomes Initiative
at Dartmouth College;
--$646,000 for Shelby County Regional Medical Center to
establish a Master Patient Index to determine patient Medicaid/
TennCare eligibility;
--$855,000 for the Children's Hospice International
demonstration program to provide a continuum of care for
children with life-threatening conditions and their families;
--$921,000 for Equip for Equality for a demonstration
project to document the impact of an independent investigative
unit that will examine deaths or other serious allegations of
abuse or neglect of people with disabilities at facilities in
Illinois;
--$1,000,000 for the West Virginia University School of
Medicine's Eye Center to test interventions and improve the
quality of life for individuals with low vision;
--$1,000,000 for Duke University Medical Center to
demonstrate the potential savings in the Medicare program of a
reimbursement system based on preventative care.
--$1,000,000 for the Iowa Department of Public Health for
the establishment and operation of a mercantile prescription
drug purchasing cooperative or non-profit corporation
demonstration;
--$1,843,000 for the Buck's County Health Improvement
Project in Pennsylvania;
--$1,700,000 for the AIDS Healthcare Foundation in Los
Angeles for a demonstration of residential and outpatient
treatment facilities;
--$2,800,000 for the Mind-Body Institute of Boston,
Massachusetts to conduct a demonstration of a lifestyle
modification program;
--$2,800,000 for a joint project between the University
of Pittsburgh, Case Western Reserve in Cleveland, Ohio, and Mt.
Sinai Hospital in Miami, Florida, to use integrated nursing
services and technology to implement daily monitoring of
congestive heart failure patients in underserved populations in
accordance with established clinical guidelines; and
--$20,000,000 to continue demonstration projects on
Medicaid coverage of community-based attendant care services
for people with disabilities.
HCFA is urged to conduct a demonstration project
addressing the extraordinary adverse health status of native
Hawaiians at the Waimanalo health center exploring the use of
preventive and indigenous health care expertise.
HCFA is urged to work with the United States Renal Data
System (USRDS) to test potential savings to the Federal
government and to the Medicare program by comparing actual
Medicare/Medicaid spending for end stage renal disease (ESRD)
patients currently on daily hemodialysis with actual Medicare/
Medicaid spending for ESRD patients on other treatment
modalities, such as peritoneal dialysis and in-center
hemodialysis whose demographic and other characteristics match
those of the daily hemodialysis patients in 9 to 12 existing
programs in the U.S. Such a study should compare spending
related to patient dialysis and training, medications, vascular
access, ambulance transportation, physician and outpatient
medical expenses not related to dialysis, hospitalizations, and
other medical services, such as skilled nursing facilities or
home health care and any other spending for which data is
available to the USRDS.
HCFA is encouraged to utilize edit check software
programs to scrub electronic data files prior to processing by
the respective State agency and/or fiscal intermediary. The
identification of errors and omissions prior to submission can
provide dramatic improvement in the financial condition of many
providers who are experiencing large losses of revenue.
The conferees are concerned that HCFA has not instituted
a demonstration project to test the potential savings to the
Federal government and to the Medicare program by comparing
different products used for diabetic wound care treatment as
referenced in last year's conference agreement. Such a
demonstration should compare the aggregate costs of wound care
treatment using different applications regimens. The conferees
urge HCFA to proceed with this demonstration project utilizing
existing research funds.
The conferees are aware that the Health Passport pilot
program is helping thousands of low-income families in Nevada,
Wyoming and North Dakota and urges HCFA to give full and fair
consideration to a proposal to continue the program.
The conferees have become increasingly concerned that
many people with the most severe disabilities often experience
a lack of quality in community residential and treatment
services that can result in dangerous or unhealthful
conditions. The conferees believe that such services should be
monitored by an entity that has the expertise and legal
authority necessary to ensure the safety and general well-being
of this population. Accordingly, the conferees urge HCFA to
support the protection and advocacy system to demonstrate the
efficacy of such community monitoring.
Medicare Contractors
The conference agreement includes $1,357,000,000 for
Medicare contractors instead of $1,165,287,000 as proposed by
the House and $1,244,000,000 as proposed by the Senate. Of this
amount, $1,305,000,000 is to support Medicare claims processing
contracts and $52,000,000 is for Medicare+Choice information
campaign.
State Survey and Certification
The conference agreement includes $244,147,000 for State
survey and certification instead of $171,147,000 as proposed by
the House and $219,674,000 as proposed by the Senate.
The agreement includes an increase of $10,000,000 over
the President's request for nursing home oversight and quality
of care services.
Federal Administration
The conference agreement includes $505,868,000 for
Federal administration instead of $474,868,000 as proposed by
the House and $489,826,000 as proposed by the Senate.
The conferees urge HCFA to give careful consideration to
concerns that substance abuse (alcohol and drug) treatment
facilities may not have been intended to be considered
institutions for mental diseases exclusion under Medicaid since
these facilities were not common when the exclusion policy was
implemented. The conferees are aware that restricting Medicaid
medical assistance to residential substance abuse treatment
facilities with 16 or fewer adult treatment beds places an
undue burden on the publicly funded substance abuse treatment
and prevention infrastructure.
The conferees concur with Senate report language urging
HCFA to act more expeditiously to approve new medical
technologies, including PET scans, for Medicare patients so
that seniors will have access to the latest life-saving
technologies and treatments.
The conferees understand that HCFA regulations require
States to provide documentation and justification before making
changes in Medicaid reimbursements. The conferees are concerned
that several State Medicaid agencies are currently paying or
proposing to pay chain-operated pharmacies lower reimbursement
rates than other pharmacies for providing the same prescription
products and related services without providing the required
justification. The conferees expect HCFA to enforce current
regulations when reviewing and approving State submissions. The
conferees also believe that the implementation of a different
system for Medicaid reimbursements of pharmaceuticals should be
addressed by the authorizing committees of jurisdiction. The
Administrator should be prepared to testify on the status of
this issue at the fiscal year 2002 appropriations hearing.
HCFA has proposed guidelines regarding the administrative
claims process for schools requesting reimbursement for
Medicaid related services. The conferees are concerned that
these guidelines are being developed without adequate input
from interested parties and will significantly alter the
administrative claiming program making it more difficult for
schools to provide services to poor and disabled children. HCFA
is expected to consult with school practitioners and other
groups to draft guidance for Medicaid allowable costs under the
administrative claiming section of the School Based Services
program. HCFA is also urged to process pending State
applications and to continue to review reimbursement procedures
until new guidelines are published. The Administrator should be
prepared to testify on this issue at the fiscal year 2002
appropriations hearing.
Administration for Children and Families
payments to states for child support enforcement and family support
programs
The conference agreement includes $2,441,800,000 for
payments to states for child support enforcement and family
support programs instead of $2,473,800,000 as proposed by the
House and $2,473,880,000 as proposed by the Senate. The
conferees provide extended availability of funds as proposed by
the Senate. The House bill proposed no extended availability.
low income home energy assistance
The conference agreement includes an additional
$300,000,000 in fiscal year 2001 funding for the Low Income
Home Energy Assistance program. When combined with the
$1,100,000,000 already appropriated for fiscal year 2001 and
the $300,000,000 in emergency funding, a total of
$1,700,000,000 is available to support this program in fiscal
year 2001. The agreement includes up to $27,500,000 for the
leveraging incentive fund within these totals.
The conferees are aware that average home heating fuel
prices have doubled in the past year, and in some areas are up
five-fold, while at the same time many states are expected to
experience extremely cold winter. The conferees are deeply
concerned that this will force steep reductions in the relative
percentage of home heating cost that LIHEAP provides to low-
income households. The conferees have provided a $300,000,000
increase in the regular appropriation for fiscal year 2001 to
reduce the adverse impact of these fuel price spikes.
The conference agreement does not include advance funding
for fiscal year 2002 for LIHEAP as proposed by the Senate. The
House bill proposed $1,100,000,000 for fiscal year 2002. The
conferees are aware that advance funding for LIHEAP was
authorized by Congress in 1990 to respond to the States' need
to budget and plan their LIHEAP programs in advance of the
fall/winter heating season. States are required by statute to
hold public hearings in the spring and summer on their proposed
LIHEAP programs to determine eligibility levels, establish the
size of household benefits, and establish parameters of crisis
programs. Consequently, States must be able to reliably predict
the LIHEAP appropriation that normally becomes available at the
very beginning of the heating season, but which is often
delayed due to late enactment of appropriations bills. As noted
in the Senate Report 101-421 accompanying the Human Services
Reauthorization Act of 1990, ``Forward funding will allow
states to identify clients, provide assistance, and put them on
responsible budget payment-plans in the summer or fall to avoid
the development of life-threatening situations.'' Although
advance funding is not included in this bill, the conferees
fully intend to provide at least $1,400,000,000 in regular
LIHEAP appropriations and $300,000,000 in emergency funds in
fiscal year 2002.
refugee and entrant assistance
The conference agreement includes $433,109,000 for
refugee and entrant assistance as proposed by the House instead
of $425,586,000 as proposed by the Senate. Within this amount,
for the Torture Victims Relief Act funds, the conferees provide
$10,000,000 as proposed by the House instead of $7,265,000 as
proposed by the Senate. Within this amount, the conferees
provide funding to implement the Trafficking Victims Protection
Act of 2000, which will support efforts to certify eligibility
for benefits and services for trafficking victims.
The agreement includes $20,000,000 from carryover funds
that are to be used under social services to increase
educational support to schools with a significant proportion of
refugee children and for the development of alternative cash
assistance programs that involve case management approaches to
improve resettlement outcomes. Such support should include
intensive English language training and cultural assimilation
programs.
The agreement also includes $26,000,000 for increased
support to communities with large concentrations of refugees
whose cultural differences make assimilation especially
difficult justifying a more intense level and longer duration
of Federal assistance.
payments to states for the child care and development block grant
The conference agreement includes an additional
$817,328,000 for child care services, together with the
$1,182,672,000 provided as an advance appropriation in last
year's bill, raising the funding level for this program to
$2,000,000,000 for fiscal year 2001. The agreement does not
provide for an advance appropriation for fiscal year 2002 as
proposed by the Senate; however, the conferees intend that
funding for the child care block grant be at least that level
in fiscal year 2002. The House bill proposed advance funding of
$2,000,000,000 for fiscal year 2002.
The agreement also includes language specifying that
funds under the Child Care and Development Block Grant are to
be used to supplement, not to supplant, state and local child
care funds.
The agreement also sets aside an additional $272,672,000
from fiscal year 2001 to be reserved by the States for
activities authorized under section 658G, of which $100,000,000
shall be for activities that improve the quality of infant and
toddler child care. The House bill set aside $172,672,000 for
additional quality purposes in fiscal year 2002. The Senate
bill set aside $222,672,000 for additional quality activities,
of which $100,000,000 was to be used for infant and toddler
care, in fiscal year 2001. The agreement also sets aside
$10,000,000 to be used for child care research, demonstration
and evaluation activities. Neither the House nor the Senate
contained this provision. Within the funds provided for child
care resources and referrals, the agreement also includes
$1,000,000 for the Child-Care Aware toll-free hotline.
social services block grant
The conference agreement includes $1,725,000,000 for the
social services block grant instead of $1,700,000,000 as
proposed by the House and $600,000,000 as proposed by the
Senate. The conference agreement includes a provision which
maintains the percentage of funds that a state may transfer
between the Social Services Block Grant and the Temporary
Assistance to Needy Families Programs at 10 percent.
children and families services programs
(including rescissions)
The conference agreement includes $7,956,345,000 for
children and families services programs instead of
$7,231,253,000 as proposed by the House and $7,895,723,000 as
proposed by the Senate. In addition, the agreement rescinds
$21,000,000 from permanent appropriations as proposed by both
the House and the Senate.
Head Start
The conference agreement includes $6,200,000,000 for Head
Start instead of $5,667,000,000 as proposed by the House and
$6,267,000,000 as proposed by the Senate. The agreement
includes an advance appropriation of $1,400,000,000 for Head
Start for fiscal year 2002 as proposed by both the House and
the Senate.
The conferees are concerned that while fifty percent of
children eligible for the regular Head Start program receive
services, only about ten percent of children of farmworkers are
served by Migrant Head Start. Therefore, the conferees
encourage the Secretary to increase funding for Migrant and
Seasonal Head Start in proportion to the overall funding
increase for Head Start. The conferees also urge the agency to
ensure that all children participating in the Early Head Start
program receive a blood lead screening test.
The conferees urge the agency to provide funds to the
Alaska Federation of Natives to train Head Start teachers in
remote Alaska villages. The conferees also encourage the agency
to provide funds to the University of Alaska to provide
distance training for Head Start teachers through Associate
Degree programs.
Runaway Youth
The conference agreement includes $69,155,000 for runaway
youth as proposed by the Senate instead of $64,155,000 as
proposed by the House. The agreement allocates funds for the
runaway and homeless youth programs following the structure of
P.L. 106-71, the Missing, Exploited, and Runaway Children
Protection Act, which consolidates the programs into a single
funding stream.
Adoption Incentive
The conference agreement includes $43,000,000 for the
adoption incentive program as proposed by the House instead of
$55,928,000 as proposed by the Senate. The agreement also
includes language that will allow funds under this program to
be carried over for use in paying prior year bonuses.
Social Services and Income Maintenance Research
The conference agreement includes $37,666,000 for social
services and income maintenance research instead of $27,491,000
as proposed by both the House and the Senate. Of this total,
the conferees intend that $5,000,000 be transferred to the
Census Bureau for continued data collection on the Survey of
Income and Program Participation. The conferees also provide
sufficient funding for the following:
--$500,000 for the National Fatherhood Initiative;
--$500,000 for the Institute for Responsible
Fatherhood;
--$1,000,000 for the State Information Technology
Consortium;
--$175,000 for the Nation Center for Appropriate
Technology's information technology clearinghouse.
The conferees also include $500,000 within Social
Services and Income Maintenance Research to support adding
LIHEAP related questions to the Residential Energy Consumption
Survey (RECS) conducted by the Department of Energy and to the
Census Bureau's March current population survey to assure that
the low-income household component is included in the surveys,
and the conferees urge the expansion of the RECS sample size to
target LIHEAP recipients. The conferees have also included
$2,500,000 for grants to qualified private, non-profit
intermediaries to demonstrate the provision of technical
assistance to child care providers to improve the quality and
supply of child care facilities in low income communities and
to document the changes.
Community Services Block Grant
The conference agreement includes $600,000,000 for the
community services block grant instead of $550,000,000 as
proposed by the Senate and $527,700,000 as proposed by the
House. The conferees expect that all local entities that are in
good standing in the community services block grant program
shall receive an increase in funding for the next program year
that is proportionate to the overall increase in the
appropriation provided for the block grant.
The agreement includes language proposed by the Senate
that requires the Department to establish certain procedures
regarding the disposition of intangible property in the
community economic development program under the Community
Services Block Grant Act. The House bill contained no similar
provision. The conferees also set aside $5,500,000 within the
community economic development program for the job creation
demonstration authorized under the Family Support Act.
Within the funds provided for child abuse prevention
programs, the agreement includes the following items:
$737,000--University of North Carolina, Greensboro,
NC for Violence Abuse Prevention and Education for Deaf
and Hard of Hearing Children and their Caretakers;
$1,382,000--Public Children Services Association of
Ohio, Columbus, OH for child abuse prevention
activities;
$46,000--New Directions Housing Corp., Louisville,
KY for the Homeless Youth Development Program;
$230,000--Neighbor to Family, Des Plaines, IL for
foster care training program;
$524,000--Robert A. Pascal Youth and Family
Services Inc., Severna Park, Maryland for the Healthy
Families program;
$1,773,000--Foster Parents Association, Spokane, WA
for the Foster Family Support System;
$230,000--Dave Thomas Center for Adoption Law at
Capital University Law School, Columbus OH for
development of an adoption law online database;
$75,000--Operation Breakthrough in Kansas City;
$400,000--Parent-to-Parent of Winooski, Vermont;
$200,000--Family Friends for respite services for
families with disabled children;
$900,000--Alaska Native Health Board Child abuse
prevention program;
$2,500,000--early childhood services--Alaska Seed
program;
$2,500,000--to continue the Healthy Families Home
Visiting Program in Alaska;
$550,000--Early Childhood Development Center at
Texas Tech University;
$900,000--Celeste Foundation for a pilot program to
bring in-home professional services via video and audio
to disruptive at-risk children in foster home
placements;
$600,000--Farm Resource Center in West Virginia to
provide a mechanism of early intervention for rural
families in crisis;
$100,000--Phoenix House Domestic Violence Center in
Council Bluffs, Iowa;
$1,562,000--Indian Oaks Academy in Manteno, IL for
a demonstration project serving children and
adolescents who are victims of child abuse;
$500,000--Strengthen Our Sisters in West Milford,
New Jersey to expand services.
Within the funds provided for developmental disabilities,
special projects $200,000 is included for the Allegheny County
Respite Care Coalition to provide respite services for parents
with disabled children.
Within the funds provided for Native American programs,
the agreement includes the following:
--$700,000 for the Cook Inlet Tribal Council;
--$300,000 for Kawerak, Inc.
--$500,000 for the Alaska Federation of Natives to
coordinate social service resources in native villages;
--$100,000 for the South Dakota Native American
Community Board to establish a Dakota language
preservation program.
The conferees support the idea that a national adoption
website could include all youngsters available for adoption and
will increase the likelihood that children will find loving,
stable homes. The conferees recognize that the National
Adoption Center has been at the forefront of developing
technology-based resources to facilitate adoptions and is
uniquely situated to create a single, national adoption
website. The conferees have included sufficient funds for the
National Adoption Center to continue to develop and sustain a
national adoption photo listing service on the Internet.
payments to states for foster care and adoption assistance
The conference agreement includes $4,863,100,000 for
payments to states for foster care and adoption assistance as
proposed by the House instead of $4,868,100,000 as proposed by
the Senate.
Administration on Aging
aging services programs
The conference agreement includes $1,103,135,000 for
aging services programs instead of $925,805,000 as proposed by
the House and $954,619,000 as proposed by the Senate.
The conferees include $125,000,000 to provide critically
needed services for family caregivers under title III E and
title VI C of the Older Americans Act as amended. The conferees
intend that $5,000,000 of these funds be dedicated for Native
American caregivers. According to the Administration on Aging,
over seven million Americans are providing care for disabled
seniors in households across the nation. Funds will be provided
to states to use their aging networks to provide quality
respite care and other support services such as information on
available resources; assistance with locating services; and
caregiver training, counseling and support. Such services
improve the caregiver's ability to provide care, help preserve
the family unit, prevent abuse and neglect, and minimize out-
of-home placements. Caregiver support services also delay
nursing home stays among care recipients.
The conferees intend that $5,000,000 be made available
from preventive health services for activities regarding
medication management, screening, and education to prevent
incorrect medication and adverse drug reactions.
The agreement includes the following amounts under aging
research and training:
$961,000--Texas Tech University Health Sciences
Center, Lubbock, TX for the Institute for Healthy
Aging;
$691,000--Florida International University, Miami,
FL, National Policy and Research Center on Nutrition
and Aging for ``Nutrition 2030'' program;
$2,000--Bay Ridge Center for Older Adults,
Brooklyn, NY for a demonstration program;
$3,000--Staten Island Community Services Friendship
Clubs, Inc., Staten Island, NY for a demonstration
program in senior centers;
$921,000--Mecklenburg County Department of Social
Services, Services for Adults Division in Charlotte, NC
for Nutrition 2000 program;
$461,000--Metropolitan Family Services, Chicago, IL
for a community based caregiver training program;
$369,000--Ocean County New Jersey, Office of Senior
Services for a demonstration program;
$369,000--Burlington County New Jersey, Office on
Aging for a demonstration program;
$184,000--Camden County New Jersey, Division of
Senior Services for a demonstration program;
$427,000--Florida Atlantic University, Boca Raton,
FL for Anne and Louis Green Alzheimer's Care and
Research Center;
$886,000--St. Petersburg Junior College in FL for
Services for Caregivers of Seniors program;
$250,000--Access Community Health Network's Senior
Outreach Program;
$1,400,000--Deaconess-Billings Northwest Area
Center for Studies on Aging;
$100,000--An elderly meals demonstration program at
Progresso Latino in Central Falls, Rhode Island;
$100,000--The Senior Fitness and Wellness Program
in East Providence;
$100,000--Southwest General Health Center
Gatekeeper Program;
$100,000--An additional $100,000 for the National
Asian Pacific Center on Aging;
$344,000--Northwest Parkinson's Foundation;
$400,000--Champlain Valley Area Agency on Aging
mental health project;
$500,000--Albert Einstein Life Center in
Germantown;
$3,685,000--Social research into Alzheimer's
disease care options, best practices and other
Alzheimer's research priorities as specified in the
House report;
$100,000--Champlain Senior Center for adult day
programming and a technology initiative;
$200,000--Brandeis University Center on Women and
Aging to conduct research on caregiving, health and
financial security among seniors;
$64,000--LIFESPAN of Greater Rochester, Inc., New
York, to enhance a life course planning initiative to
help older adults make informed choices to prepare for
retirement;
$85,000--San Luis Obispo Medical Society in
California for volunteers in health to support a
demonstration program to provide prescription drugs for
low income, uninsured seniors;
$120,000--Marathon County, Wisconsin to continue an
initiative to provide respite care services;
$170,000--Walk the Walk, Inc, in Long Island City,
New York for Mary's House, an elder abuse center in
Glendale, New York;
$425,000--St. Louis County, Missouri for a seniors
job training demonstration program;
$468,000--National Association of Home Builders,
National Center for Seniors' Housing Research, for a
project to improve safety and access for senior
housing;
$510,000--The University of Akron College of
Nursing, Akron, Ohio, to develop best practices in
gerontological training, research and instruction;
$723,000--Ivy Tech State College in Sellersburg,
Indiana, for a seniors technology learning program;
$935,000--Landmark Medical Center in Woonsocket,
Rhode Island to support the Positive Aging Project to
develop and implement model family-centered approaches
to address the needs of the elderly;
$1,000,000--West Virginia University Center on
Aging to conduct follow-up work to the Year 2000
Conference on Rural Aging;
$425,000--City of Compton, California for an
elderly assistance demonstration program to support and
evaluate a community approach to providing services to
low income seniors;
$900,000--Donald Reynolds Aging Center at the
University of Arkansas Medical School.
Within the funds provided for state and local
innovations/projects of national significance, the conferees
intend that funds be used for ongoing projects scheduled for
refunding in fiscal year 2001.
Office of the Secretary
general departmental management
The conference agreement includes $291,075,000 for
general departmental management instead of $262,631,000 as
proposed by the House and $260,117,000 as proposed by the
Senate.
Within the total provided, $50,000,000 is for minority
HIV/AIDS activities that strengthen the medical treatment and
HIV prevention capacity within communities of color
disproportionately impacted by the HIV/AIDS epidemic, based on
rates of new HIV infection and mortality from AIDS. These funds
are available to entities that target a specific minority group
or multi-ethnic minority populations that are heavily impacted
by HIV/AIDS, and are to complement existing and planned HIV/
AIDS activities in communities of color. The agreement also
includes bill language that requires the Secretary to submit an
operating plan prior to the obligation of these funds.
Within the total provided, $2,000,000 is for the United
States-Mexico Border Health Commission. The conferees request
the Secretary to provide the House and Senate Committees on
Appropriations with a complete history of the activities and
expenses of the Commission. Also within the total provided,
$400,000 is to continue the Surgeon General's violence
initiative and $400,000 is for a study on the feasibility of
tribe compacting for the operation of Departmental programs.
The agreement provides $24,327,000 for the adolescent
family life program as proposed by the House instead of
$19,327,000 as proposed by the Senate. The agreement includes
bill language earmarking $10,377,000 under the adolescent
family life program for activities specified under section
2003(b)(2) of the Public Health Service Act, of which
$10,157,000 shall be for prevention grants under section
510(b)(2) of Title V of the Social Security Act, without
application of the limitation of section 2010(c) of Title XX of
the Public Health Service Act. The conferees intend that this
set-aside is only for continuation costs of ongoing projects.
The agreement provides $49,019,000 for minority health
instead of $38,638,000 as proposed by the House and $37,638,000
as proposed by the Senate. Within this total, $9,700,000 is to
address the capacity and infrastructure deficiencies within
minority community based organizations in rural and
historically underserved urban communities, of which $6,600,000
is for the Technical Assistance/Capacity Development Grant
Program to fund existing grants in rural and historically
underserved urban communities hardest hit by HIV/AIDS; $500,000
is for continuation funding to the Bi-Cultural and Bilingual
Demonstration Program; and $2,600,000 is to support existing
grants through the Minority Health Coalition program, designed
to promote early intervention HIV care in minority communities
and to improve the health outcomes of people of color living
with HIV disease. Also included is an increase of $1,000,000
for the Office of Minority Health's Center for Linguistics and
Cultural Competence in Health Care.
The agreement provides $17,270,000 for the office of
women's health instead of $16,495,000 as proposed by the House
and $16,895,000 as proposed by the Senate. The conferees urge
the office to provide funds to the National Osteoporosis
Foundation to support its complementary adolescent bone health
initiative.
The agreement provides $11,668,000 for the office of
emergency preparedness instead of $9,668,000 as proposed by
both the House and Senate.
The conferees include the following amounts for the
following projects and activities in fiscal year 2001:
--$50,000 for public service announcements
regarding abstinence education for the County of Bucks'
Department of Health in Doylestown, Pennsylvania;
--$298,000 in the Office of Minority Health for the
University of Maryland, Baltimore, in partnership with
the Community Lead Education and Reduction Corps to
prevent lead poisoning among low income and minority
children;
--$375,000 in the Office of Women's Health for
Spelman College's African-American Women's Health and
Wellness Project;
--$383,000 in the Office of Minority Health for the
Trinity Health Systems, Detroit, Michigan, to provide
health care and preventive health services for
underserved minority populations and low income
individuals;
--$500,000 to fund, through a contract with the
National Academy of Sciences, an evaluation on
children's health. This evaluation should assess the
adequacy of currently available methods for assessing
risks to children, identify scientific uncertainties
associated with these methods, and develop a
prioritized research agenda to reduce such
uncertainties and improve risk assessment for
children's health and safety;
--$500,000 for the Thomas Jefferson University
Hospital (TJUH) in Philadelphia, Pennsylvania, to
continue development of its Center for Integrative
Medicine, a program combining conventional medical
science with promising alternative therapies;
--$461,000 for the Glaucoma Caucus Foundation to
provide glaucoma screening and outreach activities;
--$650,000 in the Office of Minority Health for the
University of Pennsylvania School of Dentistry to
develop a Minority Oral Health Outreach program;
--$638,000 for ARCH National Resource Center on
Respite and Crisis Services in Chapel Hill, North
Carolina, to expand training, technical assistance,
evaluation and networking expertise in respite care;
--$750,000 for the Community Transportation
Association of America to provide technical assistance;
--$680,000 in the Office of Minority Health for the
Donald R. Watkins Memorial Foundation in Houston,
Texas, to enhance care for African Americans and low
income individuals with HIV/AIDS by coordinating
services and expanding outreach efforts;
--$765,000 in the Office of Minority Health for the
Alameda County Medical Center in California for an
initiative to reduce health disparities among
uninsured, minority populations;
--$850,000 in the Office of Minority Health for the
Henry Ford Health System in Detroit, Michigan, to
address the burden of chronic disease among African
Americans through a network of partnerships with
community organizations;
--$850,000 in the Office of Minority Health for the
CORE Center at Cook County Hospital in Chicago,
Illinois, for a Community and Minority Education and
Training Initiative for HIV/AIDS;
--$935,000 in the Office of Minority Health for the
Sumter Family Health Care Center, Sumter, South
Carolina to support an innovative service delivery
effort to provide health care to individuals with
disadvantaged backgrounds, including minority
populations;
--$1,105,000 in the Office of Minority Health for
the San Francisco Department of Public Health to
provide HIV care and related services with an emphasis
on providing care for women and minorities;
--$1,165,000 in the Office of Minority Health for
the Fresno Community Hospital and Medical Center in
California for diabetes care and outreach for Hispanic
Americans and low-income individuals; and
--$1,700,000 in the Office of Minority Health for
the National Council of La Raza for minority health
research and outreach.
--$150,000 for the Briarpatch Transitional Living
Program in Madison, Wisconsin, to provide housing and
support services to homeless teens.
It is understood that the screening of blood and blood
products could be improved through the use of nucleic acid
testing (NAT) to better detect known infectious diseases such
as Human Immunodeficiency Virus (HIV-1) and Hepatitis C virus
(HCV). The National Heart, Lung and Blood Institute in the
National Institutes of Health has contracted with private
companies to develop fully automated NAT tests for HIV-1 and
HCV. In view of the NIH's financial commitment to NAT and the
approval of NAT in other countries, the Public Health Service
Blood Safety Committee, chaired by the Surgeon General/
Assistant Secretary of Health, is urged to encourage the
adoption of these screening tools for individual donor testing
of blood and plasma.
The conferees request that the Chief Financial Officer
report to the House and Senate Committees on Appropriations on
the status of the HHS financial audit. The conferees also
request that the Chief Information Officer report to the House
and Senate Committees on Appropriations on the status of the
HHS computer security and related infrastructure protection.
Both reports are to be presented to the Committees no later
than March 1, 2001.
The conferees are concerned about the global AIDS
pandemic and are supportive of the Department's international
AIDS and infectious diseases efforts, especially those of CDC
and NIH. The Department should continue to identify
opportunities for strengthened international collaboration with
those countries heavily impacted by HIV/AIDS and other new and
emerging infectious diseases, as well as those nations that are
vulnerable to a rapid acceleration of new cases. The Department
should also coordinate its efforts with those of the U.S.
Agency for International Development (USAID) to ensure that HHS
activities are consistent with the USAID country strategic
plan, and with those of multilateral organizations such as the
World Health Organization and the Joint United Nations
Programme on AIDS.
The conferees urge the Secretary to establish a program
to provide information and education on autism to health
professionals and the general public as authorized in the
Children's Health Act of 2000.
The conferees direct the Secretary of Health and Human
Services, in consultation with the Director of NIH, to conduct
a review of the eligibility of the Bermuda Biological Station
for Research (BBSR) to receive F&A recovery on NIH-supported
research. The conferees are aware that the National Science
Foundation, the National Oceanic and Atmospheric
Administration, the National Aeronautics and Space
Administration, and the Office of Naval Research provide BBSR
with direct and indirect costs of research in peer-reviewed,
competitive awards. The conferees request that the Secretary
report to the House and Senate Appropriations Committees on the
status of this review.
The conferees expect the Office of Population Statistics
to better coordinate with the Health Resources and Services
Administration regarding family planning activities.
The conferees support the HHS agreement to provide the
Interdepartmental Task Force on AIDS with administrative
support funding totalling $250,000 from within funds available
to the Department.
The conferees request the Secretary to provide a report
to the House and Senate Appropriations Committees by May 1,
2001 on the Department's review and action steps taken in
response to the Institute of Medicine's report, ``No Time to
Lose: Getting More from HIV Prevention.'' This should include a
review of current investments in HIV prevention as they relate
to the issues raised by the Institute of Medicine.
The conferees are aware that the Secretary is working to
establish the Advisory Committee on Minority Health to assist
the Secretary in improving the health of racial and ethnic
minority groups, and encourage the Secretary to proceed
expeditiously so that the Department's goals and program
activities better reflect the health care needs of Hispanic
Americans and other racial and ethnic minorities.
The conferees are concerned about the current situation
regarding the availability and uneven distribution of influenza
vaccine for the nation at a critical time for our most
vulnerable populations, especially the elderly, sick and very
young. The conferees understand the Department's role in
developing influenza vaccine each year for distribution by
private industry and commend the Department for its efforts to
communicate with the American public as this unfortunate
situation developed. The Secretary, through the National
Vaccine Program Office, is directed to prepare a report to the
Committees on Appropriations of the House and Senate by June
30, 2001 regarding its assessment of this year's distribution
problems along with any recommendations for changes in the
vaccine development and distribution process.
The conferees understand that the incidence of
unreimbursed health care provided to foreign nationals in U.S.
hospital emergency rooms is a problem costing taxpayers
millions of dollars per year. The conferees direct the
Secretary to conduct a study regarding the extent of the
problem, including U.S. hospitals' experiences in obtaining
reimbursement from foreign insurers, the identity of foreign
insurance companies who do not cooperate with or reimburse U.S.
health care providers, the amount of unreimbursed services
provided to foreign nationals, along with recommended
solutions. This study shall be submitted to the Committees on
Appropriations of the House and Senate no later than December
31, 2001.
Office of Inspector General
The conference agreement includes $33,849,000 for the
Office of Inspector General as proposed by the Senate instead
of $31,394,000 as proposed by the House. The conferees do not
include language proposed by the House to limit the amount of
funds available to the Inspector General in fiscal year 2001
under the Health Insurance Portability and Accountability Act
of 1996 (HIPAA) to not more than $130,000,000. The Senate bill
contained no similar provision.
The agreement includes language not proposed by the House
or the Senate to allow funds to be used to provide protective
services to the Secretary and investigate non-payment of child
support cases for which non-payment is a Federal offense under
18 U.S.C. 228.
Office for Civil Rights
The conference agreement includes $24,742,000 for the
Office for Civil Rights instead of $18,774,000 as proposed by
the House and $23,242,000 as proposed by the Senate.
policy research
The conference agreement includes $16,738,000 for policy
research as proposed by both the House and the Senate.
The conferees include $7,125,000 to continue the study of
the outcomes of welfare reform and to assess the impacts of
policy changes on the low-income population. The conferees
recommend that this effort include the collection and use of
state-specific surveys and state and federal administration
data, including data which are newly becoming available from
state surveys. These studies should focus on assessing the
well-being of the low-income population, developing and
reporting reliable state-by-state measures of family hardship
and well-being and of the utilization of other support
programs, and improving the capabilities and comparability of
data collection efforts. These studies should continue to
measure outcomes for a broad population of welfare recipients,
former recipients, potential recipients, and other special
populations affected by state TANF policies. The conferees
further expect a report on these topics to be submitted to the
House and Senate Appropriations Committees by May 1, 2001.
Public Health and Social Services Emergency Fund
The conference agreement includes $241,231,000 for the
Public Health and Social Services Emergency Fund instead of
$254,640,000 as proposed by the House and $214,600,000 as
proposed by the Senate.
The amount provided includes $181,131,000 for the Centers
for Disease Control and Prevention for the following
bioterrorism and related activities:
--$2,000,000 to continue to discover, develop, and
transition anti-infective agents to combat emerging
diseases;
--$18,040,000 for the second year of a
collaborative research program on the anthrax vaccine;
--$32,000,000 for a national health alert network;
and
--$129,950,000 for all other activities, except
tobacco litigation. The conferees do not provide
funding for this activity.
Regarding the anthrax study, the conferees understand
that clinical studies will be greatly facilitated by the
establishment of the Vaccine Healthcare Center Network, with
the first site at Walter Reed Army Medical Center. This Network
will facilitate data collection, standardization of the anthrax
immunization, training and general data collection for this
project.
The conferees recommend that CDC continue and expand the
public health preparedness center program.
The remaining $60,100,000 is for the Office of Emergency
Preparedness for bioterrorism-related activities.
Within the total provided for CDC, the conferees include
the following amounts for the following projects and activities
in fiscal year 2001:
--$500,000 for the National Bioterrorism Civilian
Medical Response Center at Drexel University;
--$750,000 for the National Rapid Response
Bioterrorism Defense Center at the University of Texas
Medical Branch, Galveston;
--$941,000 for the University of Findlay National
Center for Terrorism Preparedness to train and prepare
underserved populations and facilities to react to
bioterrorism and related incidents;
--$900,000 for the St. Louis University Center for
Research and Education on Bioterrorism;
--$1,000,000 for the West Virginia University
Virtual Medical Campus, to conduct an assessment for
Disaster Medical Assistance Teams, National Guard
Civilian Support Teams and hospital emergency and
administrative personnel for medical preparedness and
readiness for Weapons of Mass Destruction or similar
events. These funds can only be used for this purpose.
A report is due to the Congress by June 30, 2001 on
this initiative;
--$900,000 for the Rhode Island Hospital disaster
preparedness initiative;
--$1,400,000 for the Charlotte Mecklenburg Advanced
Local Emergency Response Team (ALERT) project in
Charlotte, North Carolina;
--$1,900,000 for the Public Health Service Moble
Training Center at Fort McClellan, Alabama for
bioterrorism training; and
--$2,200,000 for the Washington Hospital Center,
the University of Pennsylvania Department of Emergency
Medicine, and the University of Tennessee ER One
initiative.
GENERAL PROVISIONS
nih and samhsa salary cap
The conference agreement includes a provision proposed by
the House limiting the use of the National Institutes of Health
and the Substance Abuse and Mental Health Services
Administration funds to pay the salary of an individual,
through a grant or other extramural mechanism, at a rate in
excess of Level I of the Executive Schedule instead of Level II
as proposed by the Senate.
one-percent evaluation tap
The conference agreement includes a provision proposed by
the House to allow for a one percent evaluation tap pursuant to
section 241 of the Public Health Service Act. The Senate bill
contained a provision to allow for an evaluation tap of not
more than 1.6 percent.
transfer authority
The conference agreement includes language to provide
general transfer authority for the Department of Health and
Human Services. This authority was first provided in fiscal
year 1996 with the understanding that the flexibility it
provides can only be carried out when proper financial
management controls and systems are in place. However, CDC has
provided Congress with inaccurate spending data on a number of
programs. While it is recognized that CDC is working to rectify
problems that have been identified, for fiscal year 2001 the
conferees are requiring a letter of reprogramming to the House
and Senate Appropriations Committees and a written response
from the Committees before any transfer of funds can be made to
CDC.
The conferees reiterate that it is not the purpose of the
transfer authority to provide funding for new policy proposals
that can, and should, be included in subsequent budget
proposals. Absent the need to respond to emergencies or
unforeseen circumstances, this authority cannot be used simply
to increase funding for programs, projects or activities
because of disagreements over the funding level or the
difficulty or inconvenience with operating levels set by the
Congress.
substance abuse and mental block grant formula allocation
The conference agreement does not include a provision
proposed by either the House or the Senate regarding the
distribution of substance abuse and mental health block grant
funding.
nih obligations
The conference agreement does not include a provision
proposed by the House to limit NIH obligations to the
President's budget request. The Senate bill contained no
similar provision.
extension of certain adjudication provisions
The conference agreement includes a provision proposed by
the Senate to extend the refugee status for persecuted
religious groups. The House bill contained no similar
provision.
medicare competitive pricing demonstration project
The conference agreement includes a provision proposed by
the Senate to prohibit funding to implement or administer the
Medicare Prepaid Competitive Pricing Demonstration Project in
Arizona or in Kansas City, Missouri or in the Kansas City,
Kansas area. The House bill contained no similar provision.
withholding of substance abuse funds
The conference agreement includes a provision proposed by
the Senate to prohibit the Secretary from withholding a State's
substance abuse block grant funds if that State is not in
compliance with the requirements of the Synar Amendment. The
provision also prohibits the Secretary from withholding
substance abuse funding from a territory that receives less
than $1,000,000. The House bill contained no similar
provisions.
state children's health insurance program (schip)
The conference agreement does not include a provision
proposed by the Senate to shift unspent fiscal year 1998 SCHIP
funds to fiscal year 2003. The House bill contained no similar
provision.
sense of the senate regarding needlestick injury prevention
The conferees delete without prejudice a Sense of the
Senate provision regarding needlestick injury prevention. The
House bill contained no similar provision.
clearinghouse on safe needle technology
The conference agreement does not include a provision
proposed by the Senate to provide additional funds to the
Centers for Disease Control and Prevention to establish a
clearinghouse on safe needle technology offset by an across-
the-board reduction to travel, consulting, and printing
services of the Departments of Labor, Health and Human
Services, and Education. The House bill contained no similar
provision.
reasonable rate of return on both intramural and extramural research
The conference agreement does not include a provision
proposed by the Senate to withhold funding if the Director of
NIH did not provide a proposal to require a reasonable rate of
return on both intramural and extramural research by March 31,
2001. The House bill contained no similar provision.
study on unreimbursed health care provided to foreign nationals
The conference agreement does not include a provision
proposed by the Senate to require the Secretary to conduct a
study on the unreimbursed health care provided to foreign
nationals. The House bill contained no similar provision.
national institute of child health and human development
The conference agreement includes a provision proposed by
the Senate to amend the Public Health Service Act to revise the
purpose of the Institute relating to gynecologic health. The
House bill contained no similar provision.
immunization infrastructure and operations activities
The conference agreement does not include a provision
proposed by the Senate to provide additional funds to the
Centers for Disease Control and Prevention for State and local
immunization infrastructure and operations activities offset by
an across-the-board reduction to administrative and related
expenses of the Departments of Labor, Health and Human
Services, and Education. The House bill contained no similar
provision.
animal care contract requirements
The conference agreement includes a provision proposed by
the Senate to require that the contractor hired for the care of
the 288 chimpanzees acquired by NIH from the Coulston
Foundation be accredited by the Association for the Assessment
and Accreditation of Laboratory Animal Care International or
has PHS assurance. The House bill contained no similar
provision.
Poison Prevention and Control Centers
The conference agreement does not include a provision
proposed by the Senate to provide additional funds to the
Health Resources and Services Administration to provide
assistance for poison prevention and control activities offset
by an across-the-board reduction to administrative and related
expenses of the Departments of Labor, Health and Human
Services, and Education. The House bill contained no similar
provision.
Sense of the Senate Regarding the Delivery of Emergency Medical
Services
The conferees delete without prejudice a Sense of the
Senate provision regarding the delivery of emergency medical
services. The House bill contained no similar provision.
Sense of the Senate Regarding Impacts of the Balanced Budget Act of
1997
The conferees delete without prejudice a Sense of the
Senate provision regarding impacts of The Balanced Budget Act
of 1997. The House bill contained no similar provision.
ARKids
The conference agreement does not include a provision
proposed by the House to prohibit the Health Care Financing
Administration from revoking a waiver to the State of Arkansas
that implements its own children's health insurance plan. The
Senate bill contained no similar provision.
Abstinence Education
The conference agreement includes language to prohibit
the awarding of abstinence education grants authorized in the
Emergency Supplemental Act, 2000 until March 1, 2001. The House
and Senate bills contained no similar provision.
Physicians Comparability Allowances
The conference agreement includes a provision not
proposed by either the House or the Senate to extend the
authority of physicians comparability allowances for five
years.
Organ Procurement Organizations
The conference agreement includes language to prohibit
the termination of the Lifelink of Puerto Rico Organ
Procurement Organization, the Northeast Organ Procurement
Organization and Tissue Bank, and the Arkansas Regional Organ
Recovery Agency from participation in the Medicare and Medicaid
programs for one year from the date of enactment of this Act.
The agreement further requires that future certification be
determined based upon performance information from these
individual Organ Procurement Organizations beginning on January
1, 2000. The House and Senate bills contained no similar
provision.
CDC International Authority
The conference agreement includes a provision not
proposed by either the House or the Senate to provide authority
to support CDC carrying out international HIV/AIDS and other
infectious and chronic disease activities abroad.
Subsection (a)(1) is intended to allow CDC to meet
relatively short-term requirements for technical, management,
and administrative personnel needs abroad through the award of
personal services contracts in situations where other options,
such as use of existing staff or hiring of new staff, or award
of a service contract, other than one for personal services,
are ineffective and impractical. During FY 2001, the conferees
expect HHS to work with the Office of Management and Budget and
other relevant agencies and Congressional committees as
appropriate to consider effective longer-term solutions for
addressing these types of needs.
Section (a)(2) is intended to ensure that the Department
of State can provide necessary support services (including
Administrative Support services agreements) to support CDC's
international health programs, including the purchase of
necessary laboratory equipment and the lease, repair and
renovation of laboratory and other facilities.
Bayview
The conference agreement includes language to allow the
Director of the National Institutes of Health to enter into and
administer a long-term lease agreement for facilities at the
Bayview Campus in Baltimore, Maryland.
Office for Human Research Protections Transfer
The conference agreement includes a provision to transfer
$5,800,000 from the National Institutes of Health to the Office
of the Secretary, General Departmental Management to support
the newly established Office for Human Research Protections.
This transfer of funds implements the Secretary's decision to
move the Office to the Department from NIH and that in the
future the Department will request funding for the Office
within the Office of the Secretary. The House and Senate bills
contained no similar provision.
Clinical Research Loan Repayment
The conference agreement includes a provision to allow
extramural clinical researchers to be included in the clinical
research loan repayment program for individuals from
disadvantaged backgrounds. The House and Senate bills contained
no similar provision.
Acting Director of NIH
The conference agreement includes a provision to allow
the current Acting Director of NIH to remain in that position
until a new Director is confirmed by the Senate. The House and
Senate bills contained no similar provision.
national neuroscience research center
The conference agreement includes a provision to name the
National Neuroscience Research Center at the National
Institutes of Health the John Edward Porter Neuroscience
Research Center.
Title II Citation
The conference agreement includes a provision proposed by
the House to cite title II as the ``Department of Health and
Human Services Appropriations Act, 2001''. The Senate bill
contained no similar provision.
TITLE III--DEPARTMENT OF EDUCATION
Education Reform
The conference agreement includes $1,880,710,000 for
Education Reform instead of $1,505,000,000 as proposed by the
House and $1,434,500,000 as proposed by the Senate.
Parental Assistance
The conference agreement includes $38,000,000 for
parental assistance instead of $40,000,000 as proposed by the
Senate. The House did not propose funding for this program.
Education Technology
For education technology, the conference agreement
includes $872,096,000 instead of $905,000,000 as proposed by
the House and $794,500,000 as proposed by the Senate.
Technology Literacy Challenge Fund
For the Technology Literacy Challenge Fund, the
conference agreement includes $400,000,000 instead of
$425,000,000 as proposed by the Senate and $517,000,000 as
proposed by the House.
Technology Innovation Challenge Grants
For the Technology Innovation Challenge Grants, the
conference agreement includes $136,328,000 instead of
$197,500,000 as proposed by the House and $100,000,000 as
proposed by the Senate. Within the amounts provided for
Technology Innovation Challenge Grants, the conference
agreement includes $46,328,000 for the following:
$921,000--to be divided equally among the Blount,
Cherokee, Cullman, DeKalb, Etowah, Fayette, Franklin,
Lamar, Lawrence, Marion, Marshall, Pickens, Walker and
Winston County Boards of Education in Alabama for
technology enhancements for schools;
$369,000--Harford County Magnet School, Aberdeen,
MD for technology enhancements;
$92,000--Community School District 31, Staten
Island, NY for school computer lab enhancements;
$147,000--Community School District 20, Brooklyn,
NY for school computer lab enhancements;
$921,000--Rockford Public Schools- District 205,
Rockford, IL for Digital Community Classroom project;
$207,000--Grant Joint Union High School District,
Sacramento, CA for technology enhancements;
$44,000--Bibb County Board of Education, AL for
technology enhancements;
$44,000--Calhoun County Board of Education, AL for
technology enhancements;
$44,000--Chambers County Board of Education, AL for
technology enhancements;
$44,000--Chilton County Board of Education, AL for
technology enhancements;
$44,000--Clay County Board of Education, AL for
technology enhancements;
$44,000--Cleburne County Board of Education, AL for
technology enhancements;
$44,000--Coosa County Board of Education, AL for
technology enhancements;
$44,000--Lee County Board of Education, AL for
technology enhancements;
$44,000--Macon County Board of Education, AL for
technology enhancements;
$44,000--St. Clair County Board of Education, AL
for technology enhancements;
$44,000--Talladega County Board of Education, AL
for technology enhancements;
$44,000--Tallapoosa County Board of Education, AL
for technology enhancements;
$44,000--Randolph County Board of Education, AL for
technology enhancements;
$44,000--Russell County Board of Education, AL for
technology enhancements;
$44,000--Jacksonville City Board of Education, AL
for technology enhancements;
$44,000--Oxford City Board of Education, AL for
technology enhancements;
$44,000--Sylacauga City Board of Education, AL for
technology enhancements;
$44,000--Phenix City Board of Education, AL for
technology enhancements;
$44,000--Auburn City Board of Education, AL for
technology enhancements;
$44,000--Opelika City Board of Education, AL for
technology enhancements;
$44,000--Piedmont City Board of Education, AL for
technology enhancements;
$921,000--Corbin Technology and Training Center,
Corbin KY;
$921,000--Regional Technology and Training Center
in West Liberty, KY;
$415,000--Cherokee County, Murphy NC for computers;
$46,000--Meredith-Dunn School, Louisville, KY for
technology enhancements;
$184,000--Crawford County Public Schools in Roberta
GA for technology development and equipment;
$35,000--Thomas Jefferson High School for Science
and Technology, Alexandria, VA for technology
enhancements;
$921,000--California Institute of the Arts,
Community Arts Partnership, Santa Clarita, CA for the
Digital Arts Network Project;
$184,000--Travis Unified School District,
Fairfield, CA for a technology plan;
$9,000,000--I CAN LEARN;
$1,800,000--Beaufort County School District in
South Carolina to continue implementing the Learning
with Laptops initiative;
$900,000--Metropolitan Regional and Technical
Center in Providence, Rhode Island to provide training
and support in computer technology through Project
Family Net;
$1,500,000--Tupelo Public School District in
Tupelo, Mississippi to Model successful, replicable
technology application and utilization;
$2,000,000--South Carolina Educational TV in
Columbia, South Carolina for its public-private
partnership established to develop model communication
tools that support the use of technology in improving
students' reading and writing;
$1,275,000--Washington State Educational Agency in
Olympia, Washington for the Linking Educational
Technology and Educational Reform (LINKS) project to
provide electronic student learning and teacher
training;
$500,000--Discovery Center in Springfield,
Missouri, in partnership with area schools, to enhance
student access to and use of technology-based learning;
$100,000--Montgomery Public School system in
Montgomery, Alabama for technology upgrades at the
Brewbaker Technology Magnet High School;
$850,000--New Mexico State Department of Education
for an online advanced placement course demonstration
program;
$450,000--Western Kentucky University to improve
teacher preparation programs that help incorporate
technology into the school curriculum;
$680,000--Houston Independent School District in
Houston, Texas to provide advanced telecommunications
systems for schools in the district;
$500,000--McDermitt Combined School in Nevada to
improve student access to and understanding of
computers;
$55,000--Northwood School District in Minong,
Wisconsin for distance education programs;
$100,000--New Mexico State Department of Education
for a virtual school designed to increase educational
access for students;
$850,000--Washington State Office of Public
Instruction for online advanced placement course
development and delivery;
$1,800,000--Iowa Department of Education for online
advance placement course development and delivery;
$2,500,000--Wheeling Jesuit University NASA Center
for Educational Technologies in West Virginia for
technology training of math and science teachers;
$65,000--Reid Elementary School District in
Searchlight, Nevada for educational technology
enhancements;
$100,000--City of Philadelphia, Pennsylvania for
technology training and access to the internet and
other high-technology tools;
$925,000--Marymount University in Virginia for an
instructional technology program for teachers;
$3,100,000--Rutgers, the State University of New
Jersey, for the RUNet 2000 project;
$2,200,000--South Dakota Board of Regents to
support distance learning technology;
$1,421,000--Future of the Piedmont Foundation,
Regional Education Center, Danville, VA for technology
enhancements;
$170,000--Santa Barbara Industry Education Council
and Santa Barbara County Education Office, California
for a computers for families program;
$250,000--Nicolet Distance Education Network in
Rhinelander, Wisconsin, for a distance learning
initiative;
$417,000--Gadsden School District in Quincy,
Florida for technology upgrades and equipment for a
distance education initiative;
$451,000--Woodburn School District, Woodburn,
Oregon for technology equipment for a distance learning
center;
$489,000--Southwest Virginia Education and Training
Network, Abington, Virginia, for technology upgrades;
$561,000--Adelphi University, New York, for the
Information Commons distance education initiative;
$638,000--Liberty Science Center, Jersey City, New
Jersey, for technology upgrades for its partnership
program with 28 school districts in New Jersey;
$723,000--Maine School Administrative District
Number 64, East Corinth, Maine, for the STAR technology
teacher training project;
$723,000--The Appalachian Center for Economic
Networks, Athens, Ohio, to expand a computer
entrepreneurship project;
$808,000--Detroit Educational Television
Foundation, Detroit, Michigan, to deliver expanded arts
educational programs to schools through the Enrichment
Channel;
$1,169,000--Puget Sound Center for Teaching,
Learning, and Technology, Seattle, Washington, for
technology training, equipment and support; and
$100,000--Rose Tree Media School District in
Pennsylvania for integrating distance learning in the
classroom through the HUBS project.
National Activities
The conference agreement includes $191,950,000 for
education technology initiatives funded under National
Activities. This includes $125,000,000 for teacher training in
technology, the same amount as proposed by the Senate instead
of $85,000,000 as proposed by the House. It also includes
$64,950,000 to establish computer learning centers in low-
income communities instead of $32,500,000 as proposed by the
House and $65,000,000 as proposed by the Senate.
Star Schools
For Star Schools, the conference agreement includes
$59,318,000 instead of $45,000,000 as proposed by the House and
$43,000,000 as proposed by the Senate. Within the amounts
provided for Star Schools, the conference agreement includes
$8,768,000 for the following:
$478,000--Winston-Salem/Forsyth County Schools,
Winston-Salem, NC for Winston-Net program;
$1,290,000--Galena School District, Galena Alaska
for a distance education program;
$4,000,000--Iowa Communications Network statewide
fiber optic demonstration program; and
$3,000,000--South Dakota Department of Education
and Cultural Affairs to continue and expand the Digital
Dakota Network which provides high speed Internet and
local and wide area networking to all public K-12
schools in South Dakota.
Telecommunications demonstration project for mathematics
The conference agreement includes $8,500,000 for
telecommunications demonstration project for mathematics as
proposed by the Senate. The House proposed no funds. The
conferees recognize the positive work that the Public
Broadcasting Service (PBS) has done in demonstrating and
evaluating the use of different technologies to provide
professional development opportunities in mathematics to
elementary and secondary school teachers. While the Mathline
program clearly has reached many teachers through various
media, the conferees want to ensure that the greatest number of
educators and students will benefit from this program. The
conferees encourage PBS to continue to explore cost effective
options for providing high quality professional development
opportunities in core curricula to current and future teachers.
In addition, the conferees encourage PBS to continue evaluating
this program to measure the change in student academic
achievement that results from teaching techniques learned
through this program.
21st Century Learning Centers
The conference agreement includes $845,614,000 for the
21st Century Learning Centers instead of $600,000,000 as
proposed by both the House and the Senate. Within the amounts
provided for 21st Century Learning Centers, the conference
agreement includes $20,614,000 for the following:
$9,000--Thirteenth Place Youth and Family Services
in Gadsen Alabama for ``The After School Program'';
$921,000--The Community House Inc. in Hinsdale, IL
for youth programs and services;
$230,000--Boys and Girls Club of Coachella Valley
in Palm Desert, CA for after school programs;
$553,000--Boys and Girls Club of Danville, Danville
IL for youth programs;
$461,000--Fayette and Clark Counties, Kentucky for
after school programs;
$69,000--Chrysalis House Inc. in Lexington, KY for
equipment related to afterschool programs;
$18,000--Goodhue Center, Staten Island, NY for an
educational and technology enrichment project;
$18,000--Central Family Life Center Inc. in Staten
Island NY for after school family preservation program
for tutoring and after school;
$23,000--Jewish Community Center of Staten Island,
NY for an after school program;
$41,000--Catholic Youth Organization Inc., Staten
Island NY for an after school program;
$92,000--Boys and Girls Club of Rochester, MN for
Project Learn;
$23,000--Children's Museum of Elizabethtown, KY for
after school programming;
$921,000--Boys and Girls Clubs of Santa Clarita
Valley, Santa Clarita, CA for youth development
programs;
$9,000--First Gethsemane Center for Family
Development, Louisville, KY for tutoring program;
$18,000--Summerbridge, Louisville, KY for tutoring
program;
$14,000--New Creations Development Programs, Inc.,
Louisville, KY for tutoring/mentoring program;
$18,000--New Zion Community Development Foundation,
Louisville, KY for after school mentoring program;
$18,000--Robbie Valentine Stars Club Education
Program, Louisville, KY for mentoring programs;
$14,000--Shiloh Community Renewal Center in
Louisville, KY for after school and summer tutoring;
$276,000--Tulare County Office of Education,
Visalia, CA for a Summer Youth program;
$691,000--West-End YMCA Association, Ontario, CA
for after school programming;
$250,000--Big Brothers/Big Sisters of America to
expand its school-based mentoring program to the State
of New Hampshire;
$250,000--City of Portland, Oregon to increase
student achievement and family involvement with
children through its Schools Uniting Neighborhoods
program;
$350,000--Cranston Public School District in
Cranston, Rhode Island, in collaboration with community
partners, to improve parental participation in student
learning and enhance the use of technology in after
school programs;
$200,000--Discovery Center in Springfield, Missouri
for expansion of science education programs available
to at risk youth;
$375,000--Bibb County Board of Education in Macon,
Georgia for after school programming;
$200,000--John A. Logan College to develop a
community learning center in rural Southern--Illinois;
$100,000--Project 2000 for mentoring and other
support services for low-income and inner-city students
in the District of Columbia;
$250,000--Holy Redeemer Health System in
Philadelphia, Pennsylvania for after school programs
for at risk children;
$1,100,000--State of Alaska for extended learning
opportunities for school children provided through the
Right Start program;
$400,000--National Ten-Point Leadership Foundation
in Boston, MA to address the mentoring needs of at-risk
inner-city youth;
$425,000--Clark County School District, Las Vegas,
Nevada for an after school community learning center;
$293,000--Centennial School District, Circle Pines,
Minnesota, for an after school program;
$213,000--City School District of New Rochelle, New
York, for an after school program;
$370,000--Abbotsford School District, Abbotsford,
Wisconsin, for an after school program;
$213,000--Community School District 24, Glendale,
New York for before- and after-school programs;
$213,000--Community School District 28, Forest
Hills, New York for an after school program;
$213,000--Community School District 30, Jackson
Heights, New York for an after school program;
$60,000--Crosby Independent School District in
Barrett Station, Texas, for an after school program;
$85,000 Eastchester Union Free School District,
Eastchester, New York for an after school program;
$128,000--Fontana Unified School District, Fontana,
California, for the educational component of a teen
center for at-risk youth;
$234,000--Sauk Prairie Schools, Sauk City,
Wisconsin for an after school program;
$468,000--Hastings Public Schools, Hastings,
Minnesota, for an after school program;
$750,000--Hayward Community School District,
Hayward, Wisconsin for an after school;
$191,000--Independence School District,
Independence, Missouri, to expand before and after
school programs;
$510,000--Macomb County Intermediate School
District, Michigan for the ``Kids Klub'' after school
program;
$1,275,000--Milwaukee Public Schools, Wisconsin,
for after school programs;
$170,000--New London Public Schools, New London,
Connecticut, for an after school program;
$298,000--New York Hall of Science in Queens, New
York for an after school program;
$629,000--Pojoaque Valley Schools in Pojoaque, New
Mexico for the Para Los Ninos after school consortium;
$213,000--Port Chester-Rye Union Free School
District, Port Chester, New York for an after school
program;
$850,000--Rock Island County Regional Office of
Education, Moline, Illinois for after school programs
in the Moline-Coal Valley School District and the Rock
Island-Milan School District;
$361,000--South Washington County Schools, Cottage
Grove, Minnesota, for an after school program;
$340,000--St. Clair County Intermediate School
District, Michigan for the ``Kids Klub'' after school
program;
$230,000--St. Francis School District, Milwaukee,
Wisconsin for an after school program;
$1,300,000--Wausau School District, Wausau,
Wisconsin, for an after school program;
$170,000--Windham Public Schools, Willimantic,
Connecticut, for an after school program; and
$2,500,000--Expansion of Gallery 37 after school
programming in Chicago, Illinois.
The conference agreement includes bill language stating
that the Secretary shall strongly encourage applications for
21st Century Community Learning Center grants to be submitted
jointly by a local educational agency (or a consortium of local
educational agencies) and a community-based organization,
including public or private entities with demonstrated
effectiveness in providing educational or related services to
individuals in the community, such as child care providers,
youth development organizations (such as YMCAs, the Boys and
Girls Clubs, Big Brothers Big Sisters of America, Camp Fire
Boys and Girls, and the Girl Scouts), museums, libraries, and
Departments of Parks and Recreation. In including this
language, the conferees intend that the Secretary shall
strongly encourage joint applications in order to promote local
collaboration and coordination of services. This is especially
important where more than one application is received proposing
to serve the same community. Additionally, the language
requires all applications submitted to the Secretary to contain
evidence that the project includes elements that are designed
to assist students to meet or exceed State and local standards
in core academic subjects, as appropriate to the needs of
participating children. The Senate bill included language
stating that a community-based organization that has experience
in providing before- and after-school services shall be
eligible to receive a grant on the same basis as a school or
consortium, and stating that the Secretary shall give priority
to any applications jointly submitted by a community-based
organization and a school or consortium. The House bill
contained no similar language.
Small Schools
The conference agreement includes $125,000,000 for the
Small, Safe and Successful Schools initiative authorized under
section 10105 of part X of the Elementary and Secondary
Education Act. The House bill included funding for this
initiative under the Fund for the Improvement of Education and
the Senate bill proposed no funding.
The conferees agree that these funds shall be used only
for activities related to the redesign of large high schools
enrolling 1,000 or more students, and that this initiative
shall continue to be jointly managed by the Office of
Elementary and Secondary Education and the Office of Vocational
and Adult Education.
EDUCATION FOR THE DISADVANTAGED
The conference agreement includes $9,532,621,000 for
Education for the Disadvantaged instead of $8,986,800,000 as
proposed by the Senate and $8,816,986,000 as proposed by the
House. The agreement includes advance funding for this account
of $6,758,300,000 instead of $6,204,763,000 as proposed by the
House and $6,223,342,000 as proposed by the Senate.
For Grants to Local Educational Agencies (LEAs) the
agreement provides $8,601,721,000 instead of $8,335,800,000 as
provided by the Senate and $7,941,397,000 as provided by the
House. Of the funds made available for basic grants,
$5,394,300,000 becomes available on October 1, 2001 for the
academic year 2001-2002.
The conference agreement includes $7,237,721,000 for
basic grants and $1,364,000,000 for concentration grants. For
fiscal year 2001, $1,158,397,000 was advance funded in the
fiscal year 2000 Departments of Labor, Health and Human
Services and Education and Related Agencies Act (P.L. 105-227).
The funding of $1,364,000,000 for concentration grants is
advanced for fiscal year 2002.
The conferees have included $225,000,000 for school
improvement activities under section 1116(c) of the Elementary
and Secondary Education Act (ESEA) of 1965 to assist low
performing schools under Title I of ESEA. School improvement
activities are those measures designed to help turn around low
performing schools. One hundred percent of the funds provided
for these activities are to be allocated by states to school
districts.
The conferees have also included a requirement that all
school districts receiving funds under Part A of Title I shall
provide students in low performing Title I schools with the
option to transfer to another public school or public charter
school in the school district, unless prohibited by state or
local law or policy. Local educational agencies located within
States that qualify for the small state minimum under Title I
Part A are not required to comply with this requirement, but
may comply if they so choose.
The conference agreement includes $6,000,000 for capital
expenses for private school children as proposed by the Senate.
The House bill contained no funding for this program.
The conference agreement includes $250,000,000 for the
Even Start program as proposed by the House instead of
$185,000,000 as proposed by the Senate.
The conference agreement includes $380,000,000 for the
migrant education program as proposed by the Senate instead of
$354,689,000 as proposed by the House. The agreement also
includes $46,000,000 for neglected and delinquent youth instead
of $50,000,000 as proposed by the Senate and $42,000,000 as
proposed by the House.
The conference agreement includes $8,900,000 for
evaluation of title I programs as proposed by the House. The
Senate bill did not propose funding for this activity.
The conference agreement includes $210,000,000 for the
comprehensive school reform demonstration program instead of
$190,000,000 as proposed by the House. The Senate bill did not
propose funding for this activity. The conferees direct the
Department to follow the directives in the report accompanying
the fiscal year 1998 bill (House Report 105-390) and in the
conference report accompanying the fiscal year 1999 bill (House
Report 105-825) in administering this program.
For the education for the disadvantaged program, the
agreement includes a provision not contained in either House or
Senate bills which allows each state and local educational
agency (LEA) to receive the greater of either the amount it
would receive at specified levels under the 100% hold harmless
contained in the Senate bill or what it would receive using the
statutory formulas. This comparison is intended to be used for
allocating funds in fiscal year 2001 for both basic and
concentration grants. The conferees expect the Department to
use updated demographic and financial expenditure data in
determining allocations when such data becomes available. The
Senate bill included a 100% hold harmless for States and LEAs
for both basic and concentration grants. The House bill
contained no similar provision.
The conferees adopt language included in the Senate bill
providing that the Department shall make 100% hold harmless
awards to LEAs that were eligible for concentration grants in
2000, but are not eligible to receive grants in fiscal year
2001.
The conferees also adopt language included in the Senate
bill providing that the Secretary of Education shall not take
into account the 100% hold harmless provision in determining
State allocations under any other program. The House bill did
not contain these hold harmless provisions.
IMPACT AID
The conference agreement includes $993,302,000 for the
Impact Aid programs instead of $985,000,000 as proposed by the
House and $1,075,000,000 as proposed by the Senate. For basic
grants the agreement includes $882,000,000; for payments for
children with disabilities the conferees include $50,000,000.
The agreement also includes $8,000,000 for facilities
maintenance, $12,802,000 for construction, and $40,500,000 for
payments for federal property. The conferees note that funds
for basic grants and payments for heavily impacted districts
are combined pursuant to the provisions of the Impact Aid
Reauthorization Act of 2000.
Sufficient funding is provided within the account for
construction for the following: $1,981,000 for the North
Chicago Community Unit School District 187; $921,000 for the
Wheatland School District, Wheatland, California; $400,000 for
Brockton Elementary Public School District in Montana;
$2,600,000 for Craig School District in Alaska; and $900,000
for Cannon Ball Elementary School on Standing Rock Sioux
Reservation in Cannon Ball, North Dakota.
The conferees also include the following language
provisions: timely filing of an application by the Academy
School District 20 in Colorado; restoration of payments to
school districts affected by a section 8002 cap in 1998; and
deeming eligibility for Kadoka School District in South Dakota.
Neither the House nor Senate bills contained similar
provisions.
SCHOOL IMPROVEMENT PROGRAMS
The conference agreement includes $4,872,084,000 for
School Improvement Programs instead of $3,165,334,000 as
proposed by the House and $4,672,534,000 as proposed by the
Senate. The agreement provides $3,107,084,000 in fiscal year
2001 and $1,765,000,000 in fiscal year 2002 funding for this
account.
Eisenhower professional development state and local activities
For Eisenhower professional development state and local
activities, the conferees provide $485,000,000. The House bill
provided $1,750,000,000 for the Teacher Empowerment Act,
subject to authorization, which included funds previously
dedicated to the Eisenhower professional development programs.
The Senate bill provided $435,000,000.
The conference agreement includes bill language providing
that a local educational agency shall use funds received in
excess of the allocation received for the preceding fiscal year
to improve teacher quality by reducing the percentage of
teachers who are uncertified, teaching out of field, or who
lack sufficient content knowledge to teach effectively in the
areas they teach. These additional funds may be used for
mentoring programs for new teachers, to provide opportunities
for teachers to participate in multi-week institutes, such as
those offered in the summer months that provide intensive
professional development and to implement incentives to retain
quality teachers who have a record of success in helping low-
achieving students improve their academic success. State
educational agencies and State agencies for higher education
may also use additional funds provided in excess of the
allocation received for the preceding fiscal year for multi-
week institutes, such as those provided in the summer months,
that provide intensive professional development in partnership
with local educational agencies, and to provide grants to
recruit, prepare, retain, and train school principals and
superintendents, especially individuals serving or intending to
serve in high-poverty, low-performing schools and districts.
The conference agreement also includes $45,000,000 within
the amount for Eisenhower state grants to be available to
States to support efforts to meet the requirements under
section 1111 of title I of the Elementary and Secondary
Education Act of 1965 or the requirements for State eligibility
for the Ed-Flex Partnership Act of 1999.
Eisenhower professional development national activities
The conference agreement provides $44,000,000 for
Eisenhower professional development national activities under
this account.
Early Childhood Educators.--Within the funds available
for Eisenhower professional development national activities,
the conference agreement includes $10,000,000 for training
early childhood educators and caregivers in high-poverty
communities to focus on professional development activities to
further children's language and literacy skills to help prevent
them from encountering reading difficulties once they enter
school.
Teacher Recruitment Initiatives.--Within the funds
available for Eisenhower professional development activities,
the conference agreement also includes $34,000,000 for new
teacher recruitment initiatives. The conferees believe that an
expanded effort to get more talented individuals from non-
traditional routes into classrooms is warranted and is an
efficient means to get highly skilled people into schools at a
time when the demand for these skills is the greatest. For
example, the conferees acknowledge that the Troops to Teachers
and Teach for America programs have been innovative models for
recruiting qualified, nontraditional candidates into teaching
and offer viable solutions to our nation's need to hire over
2.2 million teachers over the next ten years to replace veteran
retiring teachers and to accommodate additional student
enrollment.
Of the amount made available for teacher recruitment
initiatives, $3,000,000 shall be available to the Secretary for
transfer to the Defense Activity for Non-Traditional Education
Support of the Department of Defense (Troops-to-Teachers). The
remaining $31,000,000 available for teacher recruitment
initiatives shall be available for grants as described in the
prior paragraph for local educational agencies, State
educational agencies, educational service agencies, or
nonprofit agencies and organizations, including organizations
with expertise in teacher recruitment, or partnerships
comprised of these entities to recruit, prepare, place and
support mid-career professionals from diverse fields who
possess strong subject matter skills to become teachers,
particularly in high-need fields such as mathematics, science,
foreign languages, bilingual education, reading, and special
education; and to attract, recruit, screen, select, train,
place and provide financial incentives to recent college
graduates with outstanding academic records and a baccalaureate
in a field other than education to become fully qualified
teachers through nontraditional routes.
Innovative education program strategies
For innovative education program strategies, title VI of
the Elementary and Secondary Education Act of 1965, the
conference agreement includes $385,000,000 instead of
$3,100,000,000 as proposed by the Senate and $365,750,000 as
proposed by the House.
The conferees support the use of funds appropriated under
section 6301(b) to provide single-sex school or classroom
programs provided that the recipient ``complies with applicable
law,'' a phrase intended to incorporate all relevant Supreme
Court opinions, including U.S. v. Virginia, 116 S. Ct. 2264
(1996), as proposed by the Senate. The House bill contained no
similar provision. The conferees intend that this provision
does not require local educational agencies to use title VI
funds only for gender equity activities.
Class size
The conference agreement includes $1,623,000,000 to
continue the initiative to reduce class size that was begun in
fiscal year 1999. The House bill provided $1,750,000,000 for
the Teacher Empowerment Act, subject to authorization. The
Senate bill provided $3,100,000,000 for activities to improve
teacher quality, reduce class size, and renovate school
facilities and to carry out activities under title VI of the
Elementary and Secondary Education Act of 1965.
The conference agreement provides that the allocation of
funds under section 306 to the States shall be based on the
proportional share that each State received from the fiscal
year 1999 appropriation for class size reduction. States will
continue to allocate their grant funds among local educational
agencies based on a formula that reflects both their relative
numbers of children in low-income families and their school
enrollments.
Local educational agencies would use funds for
recruiting, hiring and training fully qualified regular and
special education teachers who are certified within the States,
have a baccalaureate degree and demonstrate subject matter
knowledge in their content areas. Twenty five percent of these
funds may be used by local educational agencies to test new
teachers for academic content knowledge, to meet State
certification requirements, or to provide professional
development for existing teachers. In addition, local
educational agencies may use these funds for carrying out
activities authorized under section 2210 of the Elementary and
Secondary Education Act of 1965 (the Eisenhower Professional
Development program); mentoring programs for new teachers;
providing opportunities for teachers to attend multi-week
institutes, such as those provided in the summer months, that
provide intensive professional development in partnership with
local educational agencies; and carrying out initiatives to
promote the retention of highly qualified teachers who have a
record of success in helping low-achieving students improve
their academic success. Such activities shall have the goal of
ensuring that all instructional staff are fully qualified.
A local educational agency that has already reduced class
size in the early grades may use its funds to make further
reductions in grades kindergarten through 3 or other grades, or
carry out activities to improve teacher quality. A local
educational agency in which 10 percent or more of its
elementary teachers have not met applicable State and local
certification requirements (including certification through
State or local alternative routes), or if such requirements
have been waived, may use 100 percent of funds under this
program for the purpose of helping those teachers become
certified or to help teachers who lack sufficient content
knowledge to teach effectively in the areas they teach to
obtain that knowledge. A local educational agency must notify
the State educational agency of the percentage of funds it will
use for these purposes.
A local educational agency that receives an award under
this section that is less than the starting salary for a new
teacher may use these funds to help pay the salary of a teacher
or pay for professional development activities to ensure that
all the instructional staff are fully qualified.
To improve accountability, the conference agreement
maintains language included as part of last year's
appropriations law requiring that each State and local
educational agency receiving funds publicly report to parents
on their progress in reducing class size and in increasing the
percentage of classes in core academic areas taught by fully
qualified teachers, and on the impact that such activities have
had on increasing student academic achievement. Parents, upon
request, will also have the right to know the professional
qualifications of their children's teachers.
The conference agreement requires the Secretary of
Education to inform local educational agencies of the
additional flexibility provided to local educational agencies
in which more than 10 percent of their teachers are not fully
qualified to spend all of these funds on professional
development activities. The conferees also intend that the
Secretary notify local educational agencies of the flexibility
provisions already incorporated into the class size reduction
initiative, including the ability of local educational agencies
to use up to 25 percent of local educational agency allocations
on professional development activities; to spend funds on
professional development for existing teachers if the local
educational agency receives an award that is less than the
starting salary for a new fully qualified teacher; and to spend
funds to reduce class sizes in other grades or to improve
teacher quality if the local educational agency has already
reduced class sizes in the early grades to 18 or fewer
children.
School renovation
The conference agreement includes $1,200,000,000 for
grants to local educational agencies for emergency school
renovation and repair activities; activities under part B of
the Individuals with Disabilities Education Act (IDEA); and
technology activities. The House bill provided no funding for
this activity. The Senate bill provided $3,100,000,000 for
activities to improve teacher quality, reduce class size,
renovate school facilities and to carry out activities under
title VI of the Elementary and Secondary Education Act of 1965.
The conference agreement provides $75,000,000 of the
$1,200,000,000 for formula grants to local educational agencies
with at least 50 percent of their student population living on
Native American or Native Alaskan lands. These funds may be
used for school renovations and repairs, as well as new
construction activities, which may include construction of new
facilities for specialized programs such as vocational-
technical education and the installation of plumbing, sewage
and electrical systems. For some of the schools in these local
educational agencies, new construction may represent a more
prudent use of resources than the repair or renovation of
existing structures.
The conference agreement provides $3,250,000 of the
$1,200,000,000 for grants to local educational agencies in
outlying areas for the renovation and repair of high-need
schools.
The conference agreement provides $25,000,000 for a new
Charter Schools Facilities Financing Demonstration Program
authorized as subpart 2 of part C of title X of the Elementary
and Secondary Education Act (ESEA). Charter schools are break-
the-mold public schools that are free of bureaucratic red tape,
and accountable for academic results. Many of these innovative
schools receive no assistance from their states for capital
financing expenses, or at best, only a modest amount of
assistance for capital expenses. Furthermore, in most states,
charter schools do not have bonding authority or a tax base for
capital financing.
The Charter School Facilities Financing Demonstration
Program would establish a credit enhancement demonstration
program for the acquisition, renovation, or construction of
public charter schools. Non-profit private entities (including
those that benefit Native Alaskans), public entities, or
consortia of the two entities would compete for one-time grants
to be used to establish reserve funds to leverage private
capital. For example, the reserve funds could be used for
activities such as guaranteeing bonds, notes, or leases;
encouraging private lending; or facilitating the issuance of
bonds. The conferees intend that the Secretary of Education
widely disseminate information gleaned from these demonstration
efforts with a view toward these demonstrations serving as
models for replication in states with charter schools.
The conference agreement provides that the remaining
funds ($1,096,750,000) would be distributed to State
educational agencies based on the title I, part A allocations
under the Elementary and Secondary Education Act, with a small
state minimum of one half of one percent. After allowing for
not more than one percent set aside at the state level for
administrative expenses, the State educational agency or other
entity with jurisdiction over school facilities financing, as
the case may be, would distribute 75 percent of the state's
funds to local educational agencies through competitive grants
for emergency school repair and renovation activities.
The state educational agency or other responsible entity
would ensure, through a competitive grant process, that high
poverty local educational agencies receive, in the aggregate,
shares of the state allocation of Federal emergency repair and
renovation funds that are proportionate to their share of the
state allocation of title I, part A funds. For the purposes of
this program high poverty school districts are considered to be
those with 30 percent or greater child poverty or 10,000 or
greater poor children. The state educational agency or entity
would also ensure that rural local educational agencies
receive, in the aggregate, shares of the state allocation of
Federal emergency repair and renovation funds that are
proportionate to their share of title I, part A funds. Each
state shall determine which local educational agencies within
the state qualify as rural for the purposes of this program.
Those local educational agencies eligible to compete for
an emergency repair and renovation grant either because of
their high poverty status or their rural status, but who do not
actually receive a grant, may be considered for a grant from
the remaining funds for repair and renovation activities.
Additionally, local educational agencies not eligible to
receive a grant because of their lack of high poverty or rural
status may be considered for a grant from the remaining repair
and renovation funds.
These funds may be used by local educational agencies to
meet the requirements of federal mandates such as the Americans
with Disabilities Act, Section 504 of the Rehabilitation Act,
and asbestos abatement requirements. Funds may also be used for
the renovation, acquisition, and repair of charter schools and
for emergency renovations or repairs to public school
facilities to ensure the health and safety of students and
staff (repairing, replacing, or installing roofs, electrical
wiring, plumbing systems, or sewage systems; repairing,
replacing, or installing heating, ventilation, or air
conditioning systems, including insulation; and bringing
schools into compliance with fire and safety codes).
The conference agreement clarifies that public charter
schools that are considered to be a local educational agency
under state law are eligible to compete for renovation and
repair funds from the state in the same manner as local
educational agencies. In addition, public charter schools that
are not considered to be a local educational agency are
eligible to receive assistance, in the same manner as a public
school, from a local educational agency that is awarded a grant
under this section.
The conference agreement provides for the equitable
participation of non-profit, private elementary and secondary
schools in repair and renovation activities. The eligible non-
profit, private elementary and secondary schools would be
limited to those schools with a child poverty rate of 40
percent or greater. Private school participation, in general,
would be controlled by section 6402 of the Elementary and
Secondary Education Act (ESEA), which provides for the
equitable participation of children enrolled in non-profit
private elementary and secondary schools in the title VI block
grant program of ESEA. This provision would allow these schools
to receive the following services: (1) modifications of private
school facilities in order to meet the standards under the
Americans with Disabilities Act; (2) modifications of private
school facilities to meet the standards under Section 504 of
the Rehabilitation Act; and (3) asbestos abatement or removal
from such school facilities.
The conference agreement includes a prohibition on using
federal emergency repair and renovation funds to supplant state
and local funds available for repair and renovation. However,
federal funds used for compliance with the Americans with
Disabilities Act and Section 504 of the Rehabilitation Act
would not be subject to a supplement, not supplant requirement.
While schools are required to make facilities modifications to
ensure accessibility and should have already made these
modifications, it is most important that these modifications be
made. Minimizing the restrictions placed upon federal funds for
these purposes can help ensure that school buildings become
accessible to disabled individuals.
The conference agreement also provides for flexibility in
the use of funds by local educational agencies. State
educational agencies would distribute 25 percent of the funds
they receive to local educational agencies through a
competitive grant process for activities under part B of IDEA,
technology activities, or both IDEA and technology activities.
State educational agencies would base the grant awards for IDEA
activities upon the need of a local educational agency for
additional funds due to substantially high costs associated
with serving a child with a disability; the costs of special
education and related services, including transportation as
needed to assist a child with a disability to benefit from
special education; the costs of assistive technology devices
and services, and the costs associated with helping children
with disabilities progress toward state performance goals and
indicators. State educational agencies would base the
technology grant awards upon the need of a local educational
agency for additional funds for technology activities carried
out in connection with school repair and renovation, including
wiring; acquiring hardware and software; acquiring connectivity
linkages and resources; and acquiring microwave, fiber optics,
cable, and satellite transmission equipment.
Under the conference agreement, local educational
agencies choose whether to apply for an IDEA grant, a
technology grant, or both categories of grants. Local
educational agencies that receive competitive grants for
activities authorized under part B of IDEA would be required to
use the grant funds in compliance with the provisions of that
part. This requirement includes providing for the participation
of private school children eligible for IDEA services.
Technology activities would be for technology activities
carried out in connection with school repair and renovation and
include wiring; acquiring hardware and software; acquiring
connectivity linkages and resources; and acquiring microwave,
fiber optics, cable, and satellite transmission equipment.
Safe and drug free schools
The conference agreement includes $644,250,000 for the
Safe and Drug Free Schools and Communities Act instead of the
$599,250,000 as proposed by the House and $642,000,000 as
proposed by the Senate.
Included within this amount is $439,250,000 for state
grants as proposed by the House and $447,000,000 as proposed by
the Senate.
The agreement also includes $155,000,000 for national
programs instead of $145,000,000 as proposed by the Senate and
$110,000,000 as proposed by the House. Within this amount, the
conferees include $117,000,000 to support the Safe Schools/
Healthy Students initiative. Within the funds for national
programs, the agreement also provides $10,000,000 to remain
available until expended for Project School Emergency Response
to Violence to provide services to local educational agencies
in which the learning environment has been disrupted due to a
violent or traumatic crisis.
Reading is fundamental
For the Reading is Fundamental program, the conference
agreement provides $23,000,000 as proposed by the Senate
instead of $21,000,000 as proposed by the House.
Arts in education
For Arts in Education, the conference agreement includes
$28,000,000 instead of $16,500,000 as proposed by the House and
$18,000,000 as proposed by the Senate. The conferees provide
that within this total, $6,500,000 is for VSA arts, $5,500,000
is for the John F. Kennedy Center for the Performing Arts,
$2,000,000 is to be used to continue a youth violence
prevention initiative, and $10,000,000 is to be used for the
Secretary to make grants to school districts, state educational
agencies, institutions of higher education and/or state and
local non-profit arts organizations for activities authorized
under subpart 1 of the Arts in Education program, particularly
for supporting model projects and programs that integrate arts
education into the regular elementary and secondary school
curriculum and that provide for the development of model
preservice and inservice professional development programs for
arts educators and other instructional staff. In addition,
$2,000,000 is for model professional development programs for
music educators and $2,000,000 is for activities authorized
under subpart 2 of the Arts in Education program.
Education for homeless children and youth
The conference agreement includes $35,000,000 for
Education for Homeless Children and Youth instead of
$32,000,000 as proposed by the House and $31,700,000 as
proposed by the Senate.
Education of Native Hawaiians
The conference agreement includes $28,000,000 for the
Education of Native Hawaiians as proposed by the Senate instead
of $23,000,000 as proposed by the House. When making awards for
this program, the Department should provide: $6,500,000 for
curricula development, teacher training, and recruitment
programs, including native language revitalization (for which
the conferees encourage priority to be given to the University
of Hawaii at Hilo Native Language College), aquaculture,
prisoner education initiatives, waste management, computer
literacy, big island astronomy, and indigenous health programs;
$1,600,000 for community-based learning centers; $3,200,000 for
the native Hawaiian higher education program; $500,000 for the
native Hawaiian education councils; and $10,900,000 for family
based education centers, including early childhood education
for native Hawaiian children. If the Department proposes to
provide 10% less than the stated amounts for any activity
within this program, it must notify the House and Senate
Committees on Appropriations at least 90 days prior to the end
of the fiscal year.
Alaska Native educational equity
The conference agreement includes $15,000,000 for the
Alaska Native Educational Equity program as proposed by the
Senate instead of $13,000,000 as proposed by the House. From
the increase in funds provided over the fiscal year 2000 level,
$1,000,000 shall be for the Alaska Humanities Forum for
operation of the Rose student exchange program and $1,000,000
shall be for the Alaska Native Heritage Center for support of
its cultural education programs.
Charter schools
The conference agreement includes $190,000,000 for
Charter Schools instead of $175,000,000 as proposed by the
House and $210,000,000 as proposed by the Senate.
READING EXCELLENCE
The conference agreement includes $286,000,000 for
activities authorized under the Reading Excellence Act as
proposed by the Senate instead of $260,000,000 as proposed by
the House. The agreement provides $91,000,000 in fiscal year
2001 and $195,000,000 in fiscal year 2002 funding for this
account.
INDIAN EDUCATION
The conference agreement includes $115,500,000 for Indian
Education as proposed by the Senate instead of $107,765,000 as
proposed by the House.
BILINGUAL AND IMMIGRANT EDUCATION
The conference agreement includes $460,000,000 for
Bilingual and Immigrant Education programs instead of
$406,000,000 as proposed by the House and $443,000,000 as
proposed by the Senate.
For instructional services, the conference agreement
includes $180,000,000 as proposed by the Senate instead of
$162,500,000 as proposed by the House. For support services,
the agreement provides $16,000,000 instead of $14,000,000 as
proposed by both the House and the Senate. For professional
development, the conference agreement includes $100,000,000
instead of $85,000,000 as proposed by the Senate and
$71,500,000 as proposed by the House. For immigrant education,
the conference agreement includes $150,000,000 as proposed by
both the House and the Senate. The agreement also provides
$14,000,000 for foreign language assistance as proposed by the
Senate instead of $8,000,000 as proposed by the House.
Special Education
The conference agreement includes $7,439,948,000 for
Special Education instead of $7,353,141,000 as proposed by the
Senate and $6,550,161,000 as proposed by the House. The
agreement provides $2,367,948,000 in fiscal year 2001 and
$5,072,000,000 in fiscal year 2002 funding for this account.
Included in these funds is $6,339,685,000 for Grants to
States part B instead of $6,279,685,000 as proposed by the
Senate and $5,489,685,000 as proposed by the House. This
funding level provides an additional $1,350,000,000 to assist
the States in meeting the additional per pupil costs of
services to special education students.
The conference agreement includes $383,567,000 for Grants
for Infants and Families as proposed by the Senate instead of
$375,000,000 as proposed by the House.
The conference agreement includes $49,200,000 for state
program improvement grants instead of $45,200,000 as proposed
by the House and $35,200,000 as proposed by the Senate. The
agreement includes $77,353,000 for research and innovation
instead of $64,433,000 as proposed by the House and $74,433,000
as proposed by the Senate. Within the amounts provided for
Special Education Research and Innovation, the conference
agreement includes $7,353,000 for the following:
--$921,000 for the University of Louisville
Research Foundation, Louisville, KY for research in
pediatric sleep disorders and learning disabilities;
--$461,000 for the University of Northern Iowa,
Cedar Falls, IA, National Institute of Technology for
Inclusive Education for expanded outreach efforts;
--$1,421,000 for the Salt Lake City Organizing
Committee or to a governmental agency or a not-for-
profit organization designated by the Salt Lake City
Organizing Committee for the 2002 Paralympic Games;
--$1,600,000 to the National Easter Seals Society
for providing training, technical support, services and
equipment through the Early Childhood Development
Project in the Mississippi Delta Region;
--$1,000,000 for the University of Northern
Colorado's National Center for Low Incidence
Disabilities in Greeley, Colorado to demonstrate
innovative and effective approaches to teaching special
education students;
--$500,000 for the Baird Center in Burlington,
Vermont for a national demonstration to educate
students with serious emotional and behavioral
problems;
--$750,000 for the Center for Literacy and
Assessment at the University of Southern Mississippi to
increase its research dissemination, teacher and parent
training, development of replicable models for reading
assessment and intervention;
--$250,000 for the Hebrew Academy for Special
Children in Parksville, New York to continue its
demonstration program to enhance the academic and
social outcomes of developmentally disabled children;
and
--$450,000 for Parents, Inc. in Alaska to train
teachers and specialists in the use of technology to
support service delivery to children with disabilities
in rural Alaska.
The conference agreement includes $53,481,000 for
technical assistance and dissemination instead of $45,481,000
proposed by both the House and the Senate. The agreement also
includes $26,000,000 for parent information centers as proposed
by the Senate instead of $22,000,000 as proposed by the House.
Included in the agreement is $37,210,000 for technology
and media services instead of $36,410,000 as proposed by the
House and $35,323,000 as proposed by the Senate. The agreement
includes $9,500,000 for Recordings for the Blind and Dyslexic
for the purposes described in both the House and Senate
reports.
The agreement also includes $1,500,000 for Public
Telecommunications Information and Training Dissemination as
proposed by the Senate. The House bill did not contain funds
for this activity.
REHABILITATION SERVICES AND DISABILITY RESEARCH
The conference agreement includes $2,805,339,000 for
Rehabilitation Services and Disability Research instead of
$2,776,803,000 as proposed by the House and $2,799,519,000 as
proposed by the Senate.
The conference agreement includes $11,647,000 for client
assistance state grants instead of $10,928,000 as proposed by
the House and $11,147,000 as proposed by the Senate. The
agreement also includes $21,092,000 for demonstration and
training programs instead of $16,492,000 as proposed by the
House and $21,672,000 as proposed by the Senate.
The conference agreement includes $2,350,000 for migrant
and seasonal farmworkers as proposed by the House instead of
$2,850,000 as proposed by the Senate. The agreement also
includes $14,000,000 for Protection and Advocacy of Individual
Rights as proposed by the House instead of $13,000,000 as
proposed by the Senate.
The conference agreement includes $20,000,000 for
services for older blind individuals as proposed by the Senate
instead of $18,000,000 as proposed by the House. The agreement
also includes $8,717,000 for the Helen Keller Center for Deaf/
Blind as proposed by the Senate instead of $8,550,000 as
proposed by the House.
The conference agreement includes $100,400,000 for the
National Institute for Disability and Rehabilitation Research
instead of $86,462,000 as proposed by the House and $95,000,000
as proposed by the Senate. Within this amount, the conference
agreement includes $400,000 for the Cerebral Palsy Foundation
in Wichita, Kansas.
The conference agreement includes $41,112,000 for
Assistive Technology as proposed by the Senate instead of
$34,000,000 as proposed by the House. The conference agreement
includes language which overrides the authorizing statute to
provide $22,069,000 for State Assistive Technology projects, a
total of $2,680,000 for grants to protection and advocacy
systems (a minimum grant of $50,000 each) and $1,363,000 for
technical assistance activities to support States in sustaining
and strengthening their capacity to address the assistive
technology needs of individuals with disabilities. This
language was not included in either the House or Senate bills.
The agreement also retains language from the Senate bill
which changes the matching requirements and funding provisions
under title III of the Assistive Technology Act of 1998 in
order to increase access to assistive technology for
individuals with disabilities. The House bill contained no
similar provision.
Within the amounts provided for vocational rehabilitation
demonstration and training programs, the conference agreement
includes $4,600,000 for the following activities:
$921,000--Krasnow Institute at George Mason
University, Fairfax, VA for continuation of learning
disability research;
$921,000--Center for Discovery, International
Family Institute, Sullivan County, NY for expansion of
services to disabled persons;
$230,000--Alabama Institute for Deaf and Blind in
Talladega, AL for a demonstration grant for the
National Community College for Students with Sensory
Impairments;
$500,000--Muhlenberg College in Pennsylvania for a
national model program for teaching higher education
students with disabilities;
$200,000--Lewis and Clark Community College in
Godfrey, Illinois to develop employment training
services for persons with disabilities;
$425,000--The Imaginarium in Vestal, New York for
treating at risk, low income children with
developmental disorders;
$255,000--Eden Institute, Princeton, New Jersey for
community-based services to children and adults with
autism;
$595,000--American Foundation for the Blind's
National Literacy Center for the Visually Impaired,
Atlanta, Georgia to provide state-of-the-art teacher
training in the use of Braille, assistive and other
technologies to improve literacy instruction of
visually impaired children and adults;
$553,000--Illinois State Board of Education for an
Assistive Technology Exchange Program in Chicago,
Illinois, to expand services to individuals with
disabilities.
Special Institutions for Persons With Disabilities
American Printing House for the Blind
The conference agreement includes $12,000,000 for
American Printing House for the Blind instead of $11,000,000 as
proposed by the House and $12,500,000 as proposed by the
Senate. This amount includes $800,000 for the American Printing
House's commitment to provide accessible textbooks to students
who are blind or visually impaired through its innovative
Accessible Textbook Initiative and Collaboration Project.
National Technical Institute for the Deaf
The conference agreement includes $53,376,000 for the
National Technical Institute for the Deaf instead of
$54,000,000 as proposed by the House and $54,366,000 as
proposed by the Senate.
The conferees direct the Department of Education to waive
any contribution requirement for construction costs related to
the dormitory renovation project.
Gallaudet University
The conference agreement includes $89,400,000 for
Gallaudet University as proposed by the House instead of
$87,650,000 as proposed by the Senate.
Vocational and Adult Education
The conference agreement includes $1,825,600,000 for
Vocational and Adult Education instead of $1,718,600,000 as
proposed by the House and $1,726,600,000 as proposed by the
Senate. The agreement provides $1,034,600,000 in fiscal year
2001 and $791,000,000 in fiscal year 2002 funding for this
account.
The conference agreement includes $1,100,000,000 for
Vocational Education basic state grants as proposed by the
House instead of $1,071,000,000 as proposed by the Senate.
The conference agreement includes $5,600,000 for Tribally
Controlled Postsecondary Vocational Institutions as proposed by
the Senate instead of $4,600,000 as proposed by the House.
The conference agreement includes $17,500,000 for
vocational education national programs as proposed by the House
and the Senate. The agreement also includes $9,000,000 to
continue the occupational and employment information program as
proposed by the Senate. The House bill did not include funding
for this activity.
The conference agreement includes $5,000,000 for the
tech-prep education demonstration authorized under section 207
of the Perkins Act. The agreement also includes $22,000,000 for
State Grants for Incarcerated Youth as proposed by the Senate.
The House did not provide funding for these activities.
The conferees encourage the Department to give full and
fair consideration to proposals from county probation
departments collaborating with community-based organizations
established to address the educational and employment needs of
ex-offenders.
The conference agreement includes $540,000,000 for adult
education state grants instead of $470,000,000 proposed by both
the House and the Senate. Within this amount, $70,000,000 is to
be set aside for integrated English literacy and civics
education services to new immigrants. Sixty-five percent of
these funds will be allocated on the basis of a state's
absolute need for services and thirty-five percent will be
allocated on the basis of a state's recent growth in need for
services. Each state is guaranteed a minimum grant of $60,000.
For the purposes of allocating funds to States for these
services, the conferees intend that the Department of Education
use the most current data available from the Immigration and
Naturalization Service of the Department of Justice to
determine the number of immigrants admitted for legal permanent
residence for each fiscal year. The House bill provided
$25,500,000 for civics education services to new immigrants.
The Senate bill contained no similar provision.
Student Financial Assistance
The conference agreement includes $10,674,000,000 for
Student Financial Assistance instead of $10,150,000,000 as
proposed by the House and $10,639,000,000 as proposed by the
Senate. The agreement sets the maximum Pell Grant at $3,750
instead of $3,650 as proposed by the Senate and $3,500 as
proposed by the House. The agreement provides $8,756,000,000
for current law Pell Grants.
The conference agreement includes $60,000,000 for Perkins
Loan cancellations instead of $40,000,000 as proposed by the
House and $75,000,000 as proposed by the Senate. The agreement
also includes $55,000,000 for Leveraging Educational Assistance
Partnerships (LEAP) as proposed by the Senate. The House bill
did not provide funding for this program.
The conference agreement also includes $1,000,000 for the
loan forgiveness for child care providers program, instead of
$10,000,000 provided in the Senate bill. The House bill did not
include any funding for this program. The conferees are aware
of the significant need for and benefits of high quality child
care services, and for that reason, have included start up
funding for this program. Limited funding has been provided in
fiscal year 2001 solely due to the fact that few individuals
will meet the eligibility requirements. The conferees expect
the Secretary to be prepared to discuss the estimated number of
eligible borrowers and amounts eligible to be forgiven at the
fiscal year 2002 appropriations hearings to help make certain
that sufficient funding is available for this program. In
addition, the conferees direct the Department to ensure that
information about the availability and benefits of this program
is provided to all potentially eligible borrowers.
The conferees encourage the Department of Education, on
all existing and future web sites and publications where higher
education financial aid information is provided, to fairly and
accurately provide information with respect to the availability
of loans through both the Federal Family Education Loan (FFEL)
program and the Federal Direct Loan Program.
The conferees support continuing funding for work
colleges, authorized in section 448 of the Higher Education Act
of 1965. These funds help support comprehensive work-service-
learning programs around the Nation. Of the funds provided, the
conference agreement includes $4,000,000 to continue and expand
the work colleges program.
The conferees are aware of concerns in the higher
education community about the so-called ``12-hour rule'' and
its unsuitability to address the needs of institutions of
higher education throughout the nation that serve non-
traditional students engaged in lifelong learning. The
conferees are concerned about the potential for enormous
paperwork burdens being placed on institutions of higher
education in their attempts to comply with the 12-hour rule.
The conferees understand that the Department of Education has
agreed to meet with the higher education community about this
issue. The conferees strongly encourage the Department to
include all interested parties in this discussion, including
those involved in efforts to assure the integrity of Federal
student financial aid programs. The Department is requested to
report the results of the discussions and any anticipated
action on the part of the Department with respect to the 12-
hour rule to the relevant Congressional committees by March 31,
2001. By October 1, 2001, the Department is to make
recommendations to the relevant congressional committees
regarding the most appropriate means to maintain the integrity
of Federal student assistance programs without creating
unnecessary paperwork for institutions of higher education.
Higher Education
The conference agreement includes $1,911,710,000 for
Higher Education instead of $1,688,081,000 as proposed by the
House and $1,704,520,000 as proposed by the Senate.
The conference agreement includes $73,000,000 for
strengthening institutions as proposed by the House instead of
$65,000,000 as proposed by the Senate. The agreement also
includes $68,500,000 for Hispanic Serving Institutions as
proposed by the House instead of $62,500,000 as proposed by the
Senate.
The conference agreement includes $185,000,000 for
Strengthening Historically Black Colleges and Universities as
proposed by the House instead of $169,000,000 as proposed by
the Senate.
The conference agreement includes $45,000,000 for
Historically Black Graduate Institutions as proposed by the
House instead of $40,000,000 as proposed by the Senate.
The conference agreement includes $6,000,000 for Alaska
and Native Hawaiian Institutions as proposed by the Senate
instead of $5,000,000 as proposed by the House.
The conference agreement includes $15,000,000 for
Strengthening Tribal Colleges as proposed by the Senate instead
of $12,000,000 as proposed by the House. Of this amount,
$5,000,000 shall be used for construction and renovation
projects at tribally controlled colleges and universities.
The conference agreement includes $146,687,000 for the
Fund for the Improvement of Postsecondary Education instead of
$31,200,000 as proposed by the House and $51,247,000 as
proposed by the Senate. Within the amounts provided for the
Fund for the Improvement of Postsecondary Education, the
conference agreement includes $115,487,000 for the following:
$277,000--Calhoun Community College, Decatur, AL
for technology enhancements;
$921,000--Jefferson State Community College,
Birmingham, AL for technology enhancements and
supporting infrastructure;
$138,000--Wayne State College, Wayne, NE for
development of a family business center;
$2,721,000--University of Nebraska-Lincoln, in
Lincoln, NE for the Nebraska Center for Information
Technology Education;
$691,000--Wayne State College, Wayne, NE for a
computer initiative and improvement of technological
infrastructure;
$461,000--Laredo Community College, Laredo, TX for
instructional equipment;
$147,000--Spring Hill College, Mobile, AL for
Regional Library Resource Center development;
$2,482,000--Western Governor's University, Salt
Lake City, UT for distance-learning programs;
$369,000--Macon State College, Macon, GA for
technology development;
$369,000--Middle Georgia College, Cochran, GA for
distance learning programs;
$976,000--University of Virginia, Charlottesville,
VA Center for Government Studies for the Youth
Leadership Initiative;
$737,000--City University, Bellevue, WA for
distance learning;
$921,000--Southeast Missouri State University, Cape
Girardeau, MO for equipment and curriculum development
associated with the University's Polytechnic Institute;
$369,000--Millikin University, Decatur, IL for
community outreach and experiential education programs;
$921,000--Illinois State University at Normal, IL
for the Center for Special Education Technology;
$369,000--Mankato State University, Mankato, MN for
a wireless campus initiative;
$369,000--Winona State University, MN for
technology enhancements;
$461,000--Montana State University, Bozeman, MT for
Educational Technology Leadership Institute;
$461,000--Western Montana College of the University
of Montana in Dillon, MT for the Rural Education
Technology Center;
$921,000--Wittenberg University, Springfield, OH
for technology improvements;
$921,000--California State University, Long Beach
in Long Beach, CA for Technology-Enhanced Learning
Project;
$1,843,000--Elmira College, Elmira, NY for a
Technology Enhancement Initiative;
$921,000--University of Arkansas, Fayetteville, AR
for the Social Work Research Center;
$4,564,000--The Oklahoma Regents for Higher
Education, Oklahoma City, OK for an educational
telecommunications and information network utilizing
facilities being made available in Ponca City, OK;
$461,000--William Tyndale College, Farmington
Hills, Michigan for Interactive learning center for the
21st Century;
$980,000--John Carroll University, University
Heights, OH for operations and equipment related to the
Center for Mathematics and Science Education, Teaching,
and Technology;
$1,713,000--San Bernardino Community College
District to support the expansion of distance education
telecourse broadcasting, including the purchase of
equipment;
$207,000--Office of Global Business &
Entrepreneurship, Gordon Ford College of Business,
Bowling Green, KY for technology;
$461,000--Northwestern State University,
Natchitoches, LA for Technological Infrastructure
Improvements;
$1,068,000--University of Colorado at Boulder,
Boulder, CO for the ATLAS (Alliance for Technology,
Learning and Society) Project for technology-enhanced
learning;
$921,000--Fort Hays State University, Center for
Networked Learning, Hays, KS for information
technology;
$1,704,000--Ocean Institute, Dana Point, CA for the
Ocean Education Center;
$553,000--National Latino Research Center,
California State University San Marcos, San Marcos, CA
for training and research regarding Hispanic
populations in the U.S.;
$880,000--The Philadelphia University,
Philadelphia, PA for the Center for Education
Technology;
$1,152,000--DePaul University, Chicago, IL for
training and infrastructure improvement;
$829,000--Barat College, Lake Forest, IL for the
Center for Teacher Learning;
$949,000--University of Arizona College of Medicine
for the Integrative Medicine Distance Learning Program;
$691,000--Kansas State University, Manhattan, KS
for Great Plains Network Connectivity;
$230,000--Kansas Technology Center, Pittsburg State
University, Pittsburg, KS for manufacturing education;
$461,000--Indiana Institute of Tech, Ft. Wayne, IN
for technology enhancements;
$921,000--Central Florida Community College, Ocala,
FL for academic programming;
$1,382,000--Southeastern Louisiana University,
Hammond, LA for the Alternate Teacher Certification
Technology Program;
$921,000--University of Tennessee, Chattanooga
Challenger Center, Chattanooga, TN for programmatic
educational activities;
$921,000--State Board of Career and Technology
Education, Oklahoma Department of Career and Technology
Education, Stillwater, OK for a Rural Education Virtual
Tech Job Training System pilot program;
$322,000--Center for International Trade
Development at Oklahoma State University, Stillwater,
OK for higher education international studies;
$1,843,000--Delaware County Community College,
Media, PA for technology infrastructure;
$1,106,000--Shenandoah University, Winchester, VA
for a technology education program;
$2,499,000--University of Hawaii at Manoa for a
joint project with the University of South Florida, the
University of California at Los Angeles, CA and George
Washington University for the Globalization Network
program;
$884,000--University of Idaho College of
Engineering at Boise to enhance computing and modeling
capabilities;
$1,843,000--Heidelberg College, Tiffin, Ohio for
science education and research, including laboratory
and computer equipment;
$4,146,000--Northern Illinois Center for
Accelerator and Detector Development at Northern
Illinois University, DeKalb, IL for equipment and
operations;
$921,000--University of Redlands, Redlands, CA for
computer technology and networking;
$276,000--New York Medical College for curriculum
development;
$1,705,000--Minnesota State Colleges and
Universities, St. Paul, MN for development of an e-
monitoring environment;
$92,000--La Sierra University in Riverside, CA for
educational equipment;
$980,000--University of Alabama, Tuscaloosa, AL for
the Child Development Research Center;
$700,000--Center for the Advancement of Distance
Education in Rural America (CADERA) in New Mexico;
$400,000--Crime Victim Law Institute at the
Northwestern School of Law, Lewis & Clark College in
Portland, Oregon to continue the study and enhancement
of the role of victims in the criminal justice system;
$200,000--Urban Learning Center in Covington,
Kentucky to expand education and student support
programs that prepare economically disadvantaged
individuals for post-secondary education;
$500,000--Washington and Lee University in
Lexington, Virginia for the Shepherd Program for the
Study of Poverty;
$900,000--University of Idaho in Moscow Interactive
Learning Environments initiative designed to develop
and improve Internet-based delivery of education
programs;
$1,000,000--Huntingdon College in Montgomery,
Alabama to assist in the development of a program to
enhance effective integration of computer technology in
math and science instruction;
$900,000--Eastern New Mexico University-Roswell to
expand its aviation maintenance technology program;
$1,300,000--University of Alabama in Tuscaloosa,
Alabama to upgrade computer equipment and software in
its Mathematics Learning Center for enhancement of
undergraduate mathematics and science instruction and
education;
$1,020,000--Northwestern Michigan College in
Traverse City, Michigan to enhance programmatic
operations of the Great Lakes Water Research Center
through teacher education, course development, and
equipment acquisition;
$250,000--Pittsburgh Digital Greenhouse in
Pennsylvania for continuing education programs;
$300,000--Oregon Graduate Institute in Portland,
Oregon for the creation of Environmental Information
Technology certificate and graduate degree programs;
$750,000--University of Louisville in Kentucky for
infrastructure needs to support access to postsecondary
education for nontraditional students through its
Metropolitan Scholars Program;
$500,000--Northern Kentucky University to expand
educational opportunities for nontraditional students
through its Metropolitan Education and Training Service
program;
$625,000--College of Technology at Montana State
University-Great Falls to establish a dental hygiene
education program;
$300,000--Cleveland State University in Ohio for
equipment acquisition and technology enhancements that
support innovative educational programming;
$1,800,000--Galena School District in Alaska for a
collaboration with the University of Southeast Alaska
for occupation-based curriculum development and
implementation;
$300,000--Southern Oregon University in Ashland,
Oregon to continue efforts to research and pilot a
comprehensive program for preventing alcohol and drug
abuse among college students;
$1,000,000--Castleton State College in Castleton,
Vermont to establish the Robert T. Stafford Center for
the Support and Study of the Community and to establish
an endowment for the Robert T. Stafford Center;
$1,000,000--Southeast Pennsylvania Consortium for
Higher Education for faculty development, teacher
training and community outreach;
$800,000--University of Alaska to continue the
Alaska Distance Education Consortium;
$900,000--College of William and Mary in
Williamsburg, Virginia to collaborate with Colonial
Williamsburg in the development of the Institute of
American History and Democracy;
$350,000--Lehigh University in Pennsylvania for the
Integrated Product, Project, and Process Development
initiative;
$400,000--Lewis and Clark College in Portland,
Oregon for the Life of the Mind education initiative
designed to explore and celebrate the 200th
anniversaries of the Louisiana Purchase and Lewis and
Clark expedition;
$750,000--Galena School District in Alaska to
develop alternative education programs;
$250,000--Pittsburgh Tissue Engineering Institute
in Pennsylvania for educational programs;
$200,000--Chippewa Valley Technical College for
technology upgrades related to the training of health
professionals;
$1,275,000--Portland State University in Portland,
Oregon for the creation of a national Tribal Government
Institute to provide academic and professional
development opportunities for elected tribal leaders
and governments;
$500,000--College of Rural Alaska-Interior
Aleutians campus to collaborate with the Galena School
District for an innovative technology transfer program;
$300,000--Rutgers University in Newark, New Jersey
for the Community Law program;
$200,000--Minot State University for the Rural
Communications Disability Program;
$250,000--North Dakota State University for the
Tech-Based Industry Traineeship program;
$175,000--North Dakota State University to develop
an academic program in electronic commerce;
$800,000--Suomi College in Hancock, Michigan for
educational operations;
$6,000,000--University of Tennessee to establish
the Howard Baker School of Government;
$1,000,000--University of Charleston in West
Virginia for collaborative efforts with the Clay Center
for the Arts and Sciences;
$800,000--Urban College of Boston in Massachusetts
to support higher education programs serving low-income
and minority students;
$300,000--Western New Mexico University to improve
educational access and opportunity through educational
technology;
$6,000,000--Pennsylvania State University to
establish the William F. Goodling Institute for
Research in Family Literacy and to establish an
endowment fund for the William F. Goodling Institute
for Research in Family Literacy;
$1,000,000--Southern Illinois University Public
Policy Institute in Carbondale, IL for the endowment
for the Paul Simon Chair;
$230,000--Florida Gulf Coast University in Ft.
Myers, FL for curriculum development to support the
Center for Environmental Research and Preservation and
Campus Ecosystem Model;
$900,000--Oklahoma State University for the
Exercises in Hard Choices program;
$850,000--Jackson State University in Jackson,
Mississippi, to establish a Minority Center of
Excellence for Math & Science Teacher Preparation;
$300,000--Assumption College in Worcester, Mass.
for technology infrastructure and planning for expanded
science facilities;
$300,000--Boston College to develop technology
infrastructure to implement a science education
program;
$85,000--Loyola University, Illinois, for a program
to provide summer research opportunities for minority
students;
$85,000--Pace University, White Plains, New York,
to support a center for advanced technology;
$90,000--Wausau Health Foundation in Wausau,
Wisconsin to support the development and implementation
of a cardiac nursing certification program;
$85,000--Foothills Technical Institute, Security,
Arkansas, to expand technical training and education
programs for rural residents;
$106,000--Gateway Community College in Connecticut
for faculty technology training and technology
equipment upgrades;
$170,000--Florida State University in Tallahassee,
Florida, for a distance learning program;
$213,000--World Learning School of International
Training, Brattleboro, Vermont, for educational
technology programs;
$213,000--Mercy College, Dobbs Ferry, New York, for
multicultural, interdisciplinary curricula reform;
$1,225,000--Association of Jesuit Colleges and
Universities to establish the National Center for
Competency-based Distance Learning;
$255,000--East Los Angeles College, South Gate,
California, for South Gate Education Center technology
upgrades;
$298,000--Canisius College in Buffalo, New York, to
support education technology enhancements including the
purchase of equipment;
$298,000--D'Youville College, Buffalo, New York, to
support education technology enhancements including the
purchase of equipment;
$298,000--Niagara University in Lewiston, New York,
to support education technology enhancements including
the purchase of equipment;
$298,000--Gogebic Community College, Ironwood,
Michigan to enhance teacher training in the use of
technology in classroom instruction;
$340,000--Dean College, Franklin, Massachusetts for
the Institute for Students With Physical or Learning
Impairments to improve instructional and support
services for students with disabilities;
$361,000--Lamar University in Beaumont, Texas to
support the planning and creation of the Lamar
Institute of Technology Center for Criminal Justice
Education and Training;
$383,000--Ivy Tech State College, Indianapolis,
Indiana, for technology enhancements at the Lawrence
Township/Ft. Harrison campus;
$425,000--Salve Regina University in Newport, Rhode
Island to support program and curriculum development
associated with the Pell Center for International
Relations and Public Policy, including the purchase of
equipment;
$425,000--University of San Francisco, San
Francisco, California for equipment and program
development at the Center for Economic Development;
$425,000--Diablo Valley College, California, for a
teacher mentoring program to recruit high school and
community college students into teaching;
$425,000--Kingsborough Community College, Brooklyn,
New York for technology equipment and upgrades;
$468,000--Paul Quinn College Center for Education
and Technology to provide technology based services to
students and the community;
$544,000--University of North Carolina at Charlotte
for a joint project with the Johnson C. Smith
University, North Carolina, for the Strategies for
Success Program to increase the number of minority
students in graduate engineering programs;
$595,000--Columbia University, New York, for a
joint project with the Hostos Community College of the
City University of New York, New York, for a distance
learning initiative to train minority students in
foreign policy disciplines;
$638,000--University of Wisconsin in Milwaukee,
Wisconsin for the Urban Educator Corps Partnership
initiative;
$680,000--Wisconsin Indianhead Technical College,
New Richmond, Wisconsin, to provide technology training
and for technology infrastructure;
$680,000--Cambria County Area Community College,
Johnstown, Pennsylvania, for a management information
system;
$723,000--Roxbury Community College, Roxbury,
Massachusetts, for new technology equipment and
systems;
$723,000--Lehman College at the City University of
New York in Bronx, New York, to support a professional
development initiative, including the purchase of
equipment to support these activities;
$765,000--Carl Sandburg College Community
Technology Center, Galesburg, Illinois to support
expanded access to information technology and related
services, including the purchase of equipment;
$808,000--Alabama A & M University Research
Institute, Huntsville, Alabama, for continuation of
research activities and operations;
$808,000--Tougaloo College, Tougaloo, Mississippi
to expand science and math programs;
$1,275,000--University of Kansas Center for
Research, Inc. for a biodiversity information
technology initiative;
$1,700,000--George Meany Center for Labor Studies
in Silver Spring, Maryland, to support program and
curriculum development associated with a National
Center for Training the High Skilled Workforce,
including the purchase of equipment;
$2,550,000--University of Arkansas in Fayetteville
to establish academic and research programs for the
Diane Blair Center for the Study of Southern Politics
and Society;
$100,000--Neumann College, in Aston, Pennsylvania,
for curriculum design, teacher training and
development, and technology enhancements.
The conference agreement includes $67,000,000 for
International Education domestic programs as proposed by the
House instead of $62,000,000 as proposed by the Senate.
The conference agreement includes $730,000,000 for TRIO
instead of $760,000,000 as proposed by the House and
$736,500,000 as proposed by the Senate.
The conference agreement includes $295,000,000 for the
Gaining Early Awareness and Readiness for Undergraduate
Programs (GEAR UP) instead of $200,000,000 as proposed by the
House and $225,000,000 as proposed by the Senate.
The conference agreement includes $41,001,000 for Byrd
Scholarships as proposed by the Senate instead of $39,859,000
proposed by the House.
The conference agreement includes $10,000,000 for the
Javits Fellowship program in school year 2002-2003. The
agreement also includes $31,000,000 for Graduate Assistance in
Areas of National Need instead of $33,000,000 as proposed by
the Senate. The agreement includes $30,000,000 for the Learning
Anytime Anywhere Partnerships as proposed by the Senate instead
of $10,000,000 as proposed by the House.
The conference agreement includes $25,000,000 for Child
Care Access Means Parents in School instead of $15,000,000 as
proposed by the House and $10,000,000 as proposed by the
Senate.
The conference agreement includes $1,750,000 for the
Underground Railroad Educational and Cultural Program as
proposed by the Senate. The House bill did not fund this
activity.
The conference agreement also includes $4,000,000 for
Thurgood Marshall Scholarships and $1,000,000 for Olympic
Scholarships. Neither the House nor the Senate funded these
activities.
The conferees recognize efforts of the University of
South Carolina's College of Education to develop and implement
a teacher training/teacher exchange program with their
counterparts in Brazil, Denmark, Hungary, and Thailand. The
conferees encourage the Secretary to support such efforts that
link postsecondary institutions on an international basis to
promote and improve teacher training and development
activities.
HOWARD UNIVERSITY
The conference agreement includes $232,474,000 for Howard
University instead of $226,474,000 as proposed by the House and
$224,000,000 as proposed by the Senate.
COLLEGE HOUSING AND ACADEMIC FACILITIES LOANS (CHAFL)
The conference agreement includes $762,000 for the
College Housing and Academic Facilities Loans administration
instead of $737,000 as proposed by both the House and the
Senate.
HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL FINANCING, PROGRAM
ACCOUNT
The conference agreement includes $208,000 for the
Historically Black College and University Capital Financing
Program Account as proposed by the Senate instead of $207,000
as proposed by the House.
EDUCATION RESEARCH, STATISTICS AND IMPROVEMENT
The conference agreement includes $732,721,000 for
Education Research, Statistics and Improvement instead of the
$494,367,000 as proposed by the House and $506,519,000 as
proposed by the Senate.
The conferees provide $120,567,000 for research instead
of $103,567,000 as proposed by the House and $113,567,000 as
proposed by the Senate. Within this total, $20,000,000 is
included for continuation of the interagency research
initiative and $7,000,000 is included to support a research
initiative on improving schooling for language-minority
students. This program would support an interagency effort
between the Department of Education and the National Institute
of Child Health and Human Development (NICHD) to identify
critical factors in the development of English-language
literacy among students whose primary language is Spanish.
The conferees provide $80,000,000 for statistics instead
of $68,000,000 as proposed by the House and the Senate. Within
the increase provided, $2,000,000 is for a National Adult
Literacy Survey; $6,400,000 is for the Birth Cohort of the
Early Childhood Longitudinal Study to allow the Department to
follow cognitive, physical, and social development of young
children; $1,000,000 is for the Adult Literacy and Life Skills
study, an international comparative study of American workforce
literacy skills in the context of five other nations; and
$2,600,000 is for the Faculty Salary and Staff Surveys which
form part of the Institutional Postsecondary Educational Data
System and are used by many organizations to conduct policy
analysis on institutions of higher education.
The conference agreement includes $65,000,000 for
regional educational labs as proposed by both the House and the
Senate. Consistent with House report 104-537, it is the intent
of the conferees that funds provided to the regional
educational laboratories shall not be conditioned on meeting
performance standards that compromise the priorities of the
regional governing boards of each of the individual
laboratories. Further, the conferees intend that regional
educational laboratory funds shall be obligated and distributed
on the same basis as the fiscal year 2000 allocations not later
than January 31, 2001.
Fund for the Improvement of Education
For the fund for the improvement of education (FIE), the
conference agreement includes $349,354,000 instead of the
$145,000,000 as proposed by the House and $142,152,000 as
proposed by the Senate.
The conference agreement includes $50,000,000 for
comprehensive school reform grants to school districts.
The conference agreement includes $30,000,000 to be used
for the Elementary School Counseling Demonstration Program. The
agreement also includes $5,000,000 to provide grants to enable
schools to provide physical education and improve physical
fitness and $3,000,000 for activities to promote consumer,
economic, and personal finance education such as saving,
investing and entrepreneurial education.
The conference agreement includes $5,000,000 to make
awards under section 10101 of the Elementary and Secondary
Education Act for a dropout prevention demonstration project.
These awards should be made to implement innovative model
programs that undertake activities to provide support,
enrichment and motivation to students at risk of dropping out
or that undertake activities to raise standards and
expectations for disadvantaged students traditionally
underserved in schools in order to ensure school completion.
The Secretary will make awards to States or local educational
agencies, working in collaboration with institutions of higher
education or other public and private agencies, organizations
or institutions. Priority should be given to applicants serving
the communities with the highest dropout rates.
The conferees recognize the need to promote the study of
American history in our nation's schools, and therefore, have
also included $50,000,000 for a new demonstration program
focusing on the instruction of American history in elementary
and secondary education. Under this program, the Secretary of
Education will award grants to local educational agencies
(LEAs), and in turn, the LEAs will make awards to schools that
are teaching American history as a separate subject within
school curricula (not as a part of a social studies course).
Grant awards are designed to augment the quality of American
history instruction and to provide professional development
activities and teacher education in the area of American
history.
The conference agreement includes $5,000,000 for high
school reform state grants. Through this State grant program,
the Secretary of Education shall award three year grants,
through a peer review process, to State educational agencies.
State educational agencies will make available not less than 90
percent of the funds, on a competitive basis, to secondary
schools or consortia thereof to support programs, activities,
classes, and other services designed to assist secondary school
students in attaining State-established challenging academic
and technical skills proficiencies. Grants awarded to secondary
schools or consortia shall be used to carry out the following
activities: integration of academics with technical skills
courses; establishment of learning and technical skills centers
within secondary schools; and programs that support and
implement innovative strategies such as independent study,
school-based enterprises, and project-based learning.
The conference agreement includes funding under this
heading for an award to maintain and enhance the National
Teacher Recruitment Clearinghouse and for associated outreach
and technical assistance activities.
The conferees are aware of a research-based program that
assesses a student's cognitive strengths and perceptual
abilities and designs an individualized plan of strengthening
them which has promise to improve students' reading levels,
grades, test scores and behavior, thereby reducing referrals to
special education.
Within the amounts provided for the Fund for the
Improvement of Education, the conference agreement includes
$139,624,000 for the following:
$921,000--Virginia Living Museum, Newport News, VA
for an educational program;
$461,000--Giant Steps Illinois in Westmont, IL for
educational services;
$1,000,000--San Diego Unified School District in CA
for ``The Blueprint for Student Success in a Standards-
Based System'';
$544,000--Utica City School District, Utica, New
York for an English as a Second Language Program;
$9,000--Jefferson Consolidated School District,
Jefferson New York for a summer school program;
$461,000--Texas A&M International University,
Laredo, TX for the Reading Research Center;
$184,000--Riverside Community College District,
Riverside, CA for general planning for a Center for
Primary Education;
$547,000--Riverside Community College District,
Riverside, CA for curriculum development and related
costs for the School for the Arts;
$343,000--Louisiana Tech University, Ruston, LA for
``Project Life'';
$686,000--WestEd Eisenhower Regional Consortium for
Science and Mathematics, San Francisco, CA for 24
Challenge and Jumping Levels Math;
$507,000--George Mason University, Fairfax VA for
Center for Families and Schools programming;
$275,000--Fairfax County Public Schools, Fairfax,
VA for the Teacher Leadership 2000 project in Annandale
Terrace Elementary School, Belvedere Elementary School,
Glen Forest Elementary School, Graham Road Elementary
School, and Parklawn Elementary School;
$841,000--Institute for Student Achievement, New
York, NY for establishment of programs at Holmes Middle
School, Annandale High School and Falls Church High
School in Virginia;
$929,000--Yosemite National Institute, Sausalito,
CA for science-based environmental education;
$1,283,000--Indian River Community College, Fort
Pierce, FL for the Living Science Interactive Learning
Model;
$23,000--United Activities Unlimited Inc., Staten
Island, NY for tutoring and homework assistance;
$28,000--Foundation for the Advancement of Autistic
Persons in Staten Island, NY for Eden II teacher
retention program;
$69,000--Community School District 31, Staten
Island, NY for textbook and library book purchases;
$276,000--New Jersey Historical Society for
``Educating New Jersey's Children in the Past'';
$691,000--Mote Marine Laboratory, Sarasota, FL for
technology-based education programs;
$921,000--Space Education Initiatives, Inc., Green
Bay, WI for professional development and technology
programming;
$3,430,000--The Board of Education of the City of
Chicago/Chicago Public Schools, National Teaching
Training Academy, Chicago IL for the Consortium for the
Advancement of Teaching;
$230,000--Fox Valley Illinois YMCA for the Teen
Agenda Program;
$115,000--L.E.A.D.E.R.S. Program, Rochester Hills,
MI for teen leadership, character development, and role
modeling program;
$806,000--Clark State Community College,
Springfield OH and Cuyahoga Community College,
Cleveland, OH for the Early Childhood Literacy Project;
$369,000--Kids Voting USA, Tempe, AZ for
educational programming;
$921,000--Rockford Public Schools--District 205,
Rockford, IL for strengthening of a magnet school
program;
$461,000--Carthage Central School District,
Carthage, NY for an academic intervention plan;
$1,799,000--Reading Together USA Program at the
University of North Carolina at Greensboro for tutoring
program expansion;
$691,000--National Center for Family Literacy,
Louisville, KY for family literacy practitioner
training;
$461,000--Center Unified School District, Antelope,
CA for training for literacy professionals;
$497,000--San Juan Unified School District,
Carmichael, CA for a comprehensive literacy program;
$921,000--San Joaquin Council of Governments,
Stockton, CA for the San Joaquin County Reads Program;
$880,000--George C. Marshall Foundation, Lexington,
VA for character development through community service;
$415,000--National Crime Prevention Council,
Washington DC for continuation of the National Youth
Safety Corps;
$921,000--Adler Planetarium and Astronomy Museum,
Chicago, IL for Cyber Space Technology Learning Center;
$184,000--Northwestern University, Evanston, IL
Institute for Policy Research for the School Youth
Development Program;
$921,000--North Central Regional Educational
Laboratory for the North Central Alliance, Oak Brook,
IL for Improving Professional Development;
$276,000--Midwest Young Artists, Highwood, IL for
music education programming;
$230,000--Shimer College, Waukegan, IL for the
Graduate Program in the Foundations of Science;
$92,000--Aptakisic Tripp Community Consolidated
School District #102 in IL for curriculum development;
$1,843,000--Lake County Forest Preserve District in
Libertyville, IL for educational center programming;
$345,000--Greater Columbus Chamber of Commerce,
Columbus OH for a Career Academy Program;
$111,000--Mariposa County Unified School District,
Mariposa California for a teacher initiative;
$350,000--Center for Advanced Research and
Technology, Clovis CA for educational programming;
$921,000--Media Arts Center, Paintsville, KY for
equipment and educational program support;
$921,000--University of West Florida, Pensacola, FL
for enhancing teacher performance in schools;
$276,000--Southern Illinois University,
Edwardsville, IL for an urban quality teacher
initiative;
$921,000--Wichita Public Schools, Wichita, KS for
special education teaching reforms;
$46,000--Beaver Local School District, Lisbon, OH
for educational programming;
$46,000--Belmont-Harrison Vocational School
District, St. Clairsville, OH for educational
programming;
$46,000--Brooke High School, Wellsburg, WV for
educational programming;
$46,000--Bridgeport Exempted Village School
District, Bridgeport, OH for educational programming;
$46,000--Buckeye Local School District, Rayland, OH
for educational programming;
$46,000--Columbiana County Career Center, Lisbon,
OH for educational programming;
$46,000--East Liverpool School District, East
Liverpool, OH for educational programming;
$46,000--Edison Local School District,
Hammondsville, OH for educational programming;
$46,000--Hancock County Schools, New Cumberland, WV
for educational programming;
$46,000--John D. Rockefeller Vocational Technical
Center, New Cumberland, WV for educational programming;
$46,000--Indian Creek School District,
Wintersville, OH for educational programming;
$46,000--Jefferson County Joint Vocational School,
Bloomingdale, OH for educational programming;
$46,000--Martins Ferry School District, Martins
Ferry, OH for educational programming;
$46,000--Midland School District, Midland, PA for
educational programming;
$46,000--Southern Local School District,
Salineville, OH for educational programming;
$46,000--South Side School District, Hookstown, PA
for educational programming;
$46,000--Steubenville City Schools, Steubenville,
OH for educational programming;
$46,000--Toronto School District, Toronto, OH for
educational programming;
$46,000--Wellsville Local School District,
Wellsville, OH for educational programming;
$46,000--Wheeling Park High School, Wheeling, WV
for educational programming;
$921,000--Girard Community Committee Inc., for
development of the Girard Multigenerational Center in
Girard, Ohio;
$369,000--St. Tammany Parish, Louisiana School
Board, Covington, LA for teacher technology training;
$92,000--Orleans Parish, LA District Attorney's
Office, New Orleans, LA for school based drug awareness
education and prevention program;
$200,000--The ReadNet Foundation, New York, NY for
innovative learning solutions for the mentally
handicapped;
$480,000--Technological Research and Development
Authority, Titusville, FL for the Mathematics, Science
& Technology Teacher Education Program;
$46,000--Kentucky Sheriff's Boys and Girls Club in
Gilbertsville KY for educational and outreach efforts
for children;
$18,000--Oscar Cross Boys and Girls Club in Paducah
KY for technology improvements;
$1,382,000--Paducah Community College for the
Challenger Learning Center, Paducah, KY for hands-on
science, mathematics and technology education;
$461,000--Mississippi Writing/Thinking Institute,
Mississippi State University, Starkville, MS for
improving teaching and writing in K-12 schools
throughout the state;
$1,176,000--University of New Mexico, Albuquerque,
NM for the Math and Science Teacher Academy;
$871,000--Florida Department of Education for
School Net;
$553,000--Galena School District, Galena Alaska for
a comprehensive vocational program;
$230,000--California Drug Consultants, Moreno
Valley CA for educational learning aids and equipment
for disabled and ill children in the Riverside County
region;
$460,000--Daemen College in Amherst, NY for
staffing costs, supplies, equipment and computer needs
for the Center for Achievement in Science;
$900,000--New Mexico Department of Education to
continue to fund student performance plans at 12
schools and for a model school drop-out prevention
program;
$500,000--Western Village Academy in Oklahoma City,
Oklahoma in partnership with Integris Health, for
literacy programs and other educational enrichment
activities;
$800,000--National Science Center Foundation in
Augusta, Georgia to continue to develop computer based
software Exit Exam Review Materials for ESOL students;
$9,000,000--Project GRAD-USA Inc. in Houston, Texas
to support expansion of the successful school reform
program, Project GRAD;
$800,000--State of Alaska to continue reading
literacy programs for high school students;
$300,000--Providence Public School District in
Providence, Rhode Island for comprehensive literacy
training to ensure that all students are reading at
grade level;
$2,000,000--Alaska Initiative for Community
Engagement to improve academic achievement of students
and involve them in their own communities;
$500,000--Semos Unlimited, Inc., in New Mexico to
complete a comprehensive initiative for providing
bilingual educational and literacy programs;
$850,000--Maine Center for Educational Services to
implement the Schools & Technology for Assessment &
Reflection program, a student performance data system
for planning and instructional purposes;
$500,000--American Village in Montevallo, Alabama
for an innovative civics education initiative that
provides students with a better understanding of the
Constitution and foundation of American self-
government;
$500,000--Vermont Educational Leadership Alliance
in Montpelier, Vermont to address the shortage of
school leaders;
$600,000--University of Northern Iowa to continue
developing a model demonstration program for early
childhood education of all students;
$700,000--Utah State Office of Education to assist
small and geographically isolated schools through the
Necessarily Existent Small Schools Program;
$2,500,000--State of Alaska to develop innovative
teacher recruitment and retention programs;
$400,000--Albuquerque Public School System in New
Mexico for its Magnet High School for Math, Science and
Technology;
$400,000--University of Oklahoma's Institute for
Practical Robotics in Oklahoma City, Oklahoma to
provide hands on experiences in robotics by developing
curricula and teacher training programs to integrate
robotics and computer engineering with traditional math
and science education;
$300,000--Salt Lake Organizing Committee or to a
governmental agency or not-for profit organization
designated by the Salt Lake City Organizing Committee
for a national arts and education model initiative for
the Winter Olympic and Paralympic Games of 2002;
$100,000--Museums & Universities Supporting
Educational Enrichment in Philadelphia, Pennsylvania
for teacher training and technology- and museum-based
curriculum development;
$105,000--Wilderness Technology Alliance in
Bellevue, Washington for educational reform activities
designed as part of its statewide demonstration
program;
$2,500,000--Sheldon-Jackson College Center for Life
Long Learning for teacher training and to address the
shortage of teachers in remote Alaskan villages;
$1,000,000--Delta State University to improve
access to and the quality of education in the
Mississippi Delta area of the State of Mississippi;
$250,000--Washington and Jefferson College Center
for Excellence in Teaching and Learning in Pennsylvania
for a comprehensive education initiative;
$75,000--Northwest Missouri Regional Council of
Government's Access 2000 program for educational
support services including career planning, leadership
development and personal skill evaluation and
improvement;
$1,800,000--University of Missouri-St. Louis for
the Teacher Workforce Replenishment Program;
$800,000--University of Rhode Island for the 2001
World Scholar Athlete Games;
$50,000--KidsPeace in Orefield, Pennsylvania for
equipment acquisition and educational services to
support the integration of health and educational
programs developed for at risk youth;
$250,000--Iowa State University Center for
Excellence in Science and Mathematics Education to
collaborate with local school districts and other
partners to increase the quality of mathematics and
science technology education for K-12 grade students;
$400,000--Council of Chief State School Officers
for professional development and recognition activities
related to the Christa McAuliffe Foundation grant
program;
$375,000--Madison Station Elementary School in
Madison, Mississippi to begin a replicable, school-
wide, arts based curriculum;
$250,000--Southeast Kansas Education Service Center
in Girard, KS to expand and replicate state-wide a
school-based mentoring effort that connects young
people from grades K-12 with adult volunteers;
$750,000--Keystone Central School District in
Pennsylvania, in collaboration with Lock Haven
University, to develop a model alternative school;
$1,800,000--Vermont Department of Education to
carry out section 1002(f) of the Elementary and
Secondary Education Act of 1965;
$100,000--Freedom Foundation at Valley Forge to
develop programs integrating citizenship education,
leadership development and literacy programs;
$850,000--California School of Professional
Psychology, in cooperation with school districts in the
San Diego, Los Angeles, San Francisco and Fresno
metropolitan areas for model teacher training programs;
$200,000--Regional Performing Arts Center in
Philadelphia, Pennsylvania for equipment acquisition in
support of distance learning programs arranged with
area schools;
$250,000--CAPE/PETE Net in Bethlehem, Pennsylvania
for distance learning technologies and educator
training to improve educational outcomes;
$400,000--National Aviation Hall of Fame in Dayton,
Ohio for curriculum development, technology upgrades
and programmatic improvements to educational programs
offered to students;
$290,000--Sunnyside School District in Washington
for a reading literacy program;
$250,000--California Institute of the Arts in
Valencia, California for an urban distance learning
program;
$250,000--Philadelphia Pops educational outreach
program, Jazz in the Schools;
$500,000--University of Northern Iowa Center for
Mathematics and Science Education to improve the
teaching of mathematics and science;
$850,000--Southwest Texas State University Center
for School Improvement to develop innovative programs
to address specific K-12 challenges facing teachers and
students;
$850,000--University of Montana in Missoula,
Montana to facilitate a community-based statewide
curriculum aimed at preventing violence in schools;
$20,000--Education, Social and Public Services
Association in Seattle, Washington to develop targeted
communications related to Washington learning
standards;
$850,000--ARC of East Central Iowa for a
comprehensive center in Cedar Rapids designed to meet
the learning, medical and day care needs of children
and adolescents with disabilities;
$250,000--American Visionary Art Museum in
Baltimore, Maryland for educational and outreach
programs targeted to underserved communities;
$250,000--Philadelphia Zoo in Philadelphia,
Pennsylvania to create, develop and implement a high
school science learning program;
$2,500,000--Big Brothers/Big Sisters of America to
strengthen and expand its school based mentoring
program;
$200,000--National Foundation for Teaching
Entrepreneurship for expansion of basic academic skill
development and entrepreneurship training programs for
students in low income areas;
$250,000--Opera Company of Philadelphia for an
integrated arts education program;
$9,000,000--Iowa Department of Education to
continue a demonstration of public school facilities;
$750,000--Des Moines Independent School District in
Iowa to support the Smoother Sailing program;
$1,000,000--Iowa Student Aid Commission for teacher
training, recruitment and support;
$500,000--Iowa Child Institute located in Des
Moines, IA for planning and development of an
innovative teacher education and training center;
$100,000--Cobbs Creek Community Environmental
Education Center in Philadelphia, Pennsylvania for
teacher training, research and equipment acquisition in
support of environmental education programs;
$400,000--Southeastern Louisiana University to
utilize distance learning for the improvement of
teacher training;
$150,000--Rock School of Pennsylvania Ballet for
innovative arts education through after school and
summer programs;
$250,000--Flathead Valley Community College Montana
TREK Center to provide rural educators with
professional development opportunities through distance
learning technologies;
$500,000--Hofstra University for a demonstration
school that integrates mathematics, science, technology
and literacy studies with the arts and cultural
studies;
$250,000--CityVest, a non-profit development
corporation in Pennsylvania, to collaborate with area
school districts in providing alternative education
programs;
$300,000--YMCA of America to expand drop out
prevention, mentoring and teen pregnancy prevention
programs serving at-risk teens in Dallas, San Antonio
and Houston;
$250,000--American Film Institute for activities
supporting a media literacy pilot project undertaken in
coordination with the Los Angeles Unified School
District;
$2,000,000--Reach Out and Read program to expand
literacy and health awareness for at-risk families;
$850,000--South Carolina Association of School
Administrators to facilitate and distribute the
methodology and pedagogy utilized by Blue Ribbon
Schools;
$50,000--Stillman College, Zelpha Wells Cultural
Education Center to continue to provide music education
and music instruction to minority and disadvantaged
youth;
$650,000--Georgia Project, Inc. in Dalton, Georgia
to assimilate Hispanic immigrant children into
mainstream curriculum;
$100,000--West Virginia University in Morgantown
for school safety research;
$1,000,000--Concord College in West Virginia for
technical skills training of new teachers;
$900,000--New York Historical Society to
collaborate with area high schools in developing a
technology-based program designed to enhance teaching
and learning;
$400,000--Child and Family Development Education
Center in Albuquerque, New Mexico to better prepare
students for school success;
$25,000--Freedom Theatre in Philadelphia,
Pennsylvania for performing arts training and mentoring
programs for area youth;
$401,000--The National Mentoring Partnership in
Washington DC for establishing the National E-Mentoring
Clearinghouse;
$900,000--Florida Institute of Education in
Tallahassee, Florida for community-based early learning
and professional development hubs;
$4,000,000--Carnegie Hall in New York, New York to
integrate distance learning and educational technology
with music education programs through the Isaac Stern
Legacy project;
$200,000--Hispanic Education and Media Group for a
Latino-Chicano high school dropout prevention program
in San Jose, CA;
$276,000--The Academy of Natural Sciences in
Philadelphia, PA for continuation of the Science
Enrichment Expansion Curriculum program;
$2,550,000--University of Notre Dame, Indiana, for
the Institute for Educational Initiatives research
center for the comparative analysis of best practices
in public and private elementary and secondary schools;
$1,700,000--Challenger Learning Center of Northwest
Indiana, Inc., Hammond, Indiana, to expand science
education and teacher training programs;
$1,275,000--For demonstration and evaluation of
``one-to-one'' computing in high-need school districts
in Bridgeport and New Haven, Connecticut; San Pablo,
Fairfield, Bay Point, and East Menlo Park, California;
and Searchlight and McDermitt, Nevada;
$1,233,000--University of Maine, Orono, Maine, for
the development of curriculum for math and science
teacher education;
$863,000--An Achievable Dream, Newport News,
Virginia to improve academic performance of at-risk
youth;
$1,250,000--Helen Keller Worldwide to expand the
ChildSight Vision Screening Program and provide
eyeglasses to additional children whose educational
performance may be hindered because of poor vision;
$1,020,000--Sacramento City Unified School
District, California to establish the California Home
Visiting Center to train teachers and parents in order
to improve student learning;
$935,000--Thornton Township High School District
205 to support the Thornton Township Teaching and
Learning Partnership teacher training program;
$850,000--Early Reading Success Institute in
Connecticut to broaden the training of professionals in
best practices in the delivery of reading instruction;
$850,000--Olympic Park Institute in Olympic
National Park, Washington, to expand science education
programs.;
$850,000--The GRAMMY Foundation, Santa Monica,
California, for music education programs;
$850,000--The Learning Collaborative Inc., Milford,
Connecticut, for the ``Pebbles Project'' to demonstrate
innovative technology to deliver educational services
to children medically unable to attend school;
$744,000--Yale University Child Study Center, New
Haven, Connecticut, for a child-centered education
pilot program;
$723,000--Babyland Family Services, Newark, New
Jersey for technology training and extended learning
opportunities for students, parents and teachers;
$723,000--Chicago Public School System, Illinois,
for teacher professional development and university
partnerships to support implementation of new magnet
school programs;
$723,000--DeKalb County School System in Georgia
for a comprehensive school violence prevention
initiative;
$723,000--East Hartford Public Schools,
Connecticut, to support program and professional
development associated with the international
baccalaureate program, including equipment;
$723,000--Sam Houston University, Huntsville, Texas
to establish a technical assistance center for after-
school programs;
$723,000--Texas A & M University, Corpus Christi,
Texas for services to at-risk bilingual families and
for a middle school math and science center at the
Early Childhood Development Center;
$723,000--University of Illinois, Chicago, Illinois
for the Project Impact Hispanic education initiative;
$638,000--Miami-Dade County Public Schools, Miami,
Florida to establish career academies;
$638,000--University of Missouri, St. Louis, School
of Education, for the Urban Educator Corps Partnership
initiative;
$595,000--Rutgers University Law School to support
a scholarship fund, public interest activities, and its
work with the LEAP Academy Charter School, including
the purchase of books and equipment to support these
activities;
$700,000--Wisconsin Educational Partnership
Initiative in Chippewa Falls, Wisconsin for a
professional development initiative;
$690,000--Washburn Public Schools, Washburn,
Wisconsin, for a pilot project designed to provide 6th
grade students and school faculty with access to
technology, including laptop computers, software, and
home internet access, and to provide expert curriculum
development assistance to school faculty members;
$510,000--Dillard University, New Orleans,
Louisiana, to expand the William L. Gilbert Academy
pre-college program for high achieving low-income high
school students;
$510,000--Educational Performances Foundation CPI,
Boston, Massachusetts, for the continued development of
the music educational program called ``From the Top'';
$510,000--West Windsor-Plainsboro Regional School
District in Mercer County, New Jersey, for the
``E=mc2'' teacher training project;
$489,000--University of Illinois at Chicago,
Illinois, for a joint project with the University of
New Orleans, Louisiana, for the Great Cities'
University Coalition Urban Educators Corps teacher
training partnership;
$442,000--Maryland State Department of Education to
support the Maryland Educational Opportunities Summer
Program;
$425,000--Alameda County Social Services Agency,
Oakland, California, to support an education and
training program for high school students;
$425,000--Clark County School District, Las Vegas,
Nevada for a comprehensive bilingual education program;
$425,000--Cleveland Botanical Garden, Cleveland,
Ohio, to expand educational curriculum, outreach and
teacher training programs;
$425,000--Detroit Area Pre-College Engineering
Program, Inc., Detroit, Michigan, for engineering,
science and math instructional, Saturday and summer
programs, teacher training, and parental engagement
activities;
$425,000--The Milton Eisenhower Foundation,
Washington, DC for a full-service community school
demonstration project in up to four locations;
$425,000--Virginia Marine Science Museum Science
Camp in Virginia Beach, Virginia to expand educational
programs and outreach to schools;
$361,000--Oakland Unified School District,
California, for a teacher professional development
initiative to increase student achievement in literacy,
math and science;
$340,000--Council of Chief State School Officers to
support the Arts Education Partnership to improve the
awareness and quality of arts in education;
$340,000--Indiana University, Bloomington, Indiana,
for the Project TEAM minority recruitment program;
$340,000--Smithsonian Institution for a jazz music
education program in Washington, DC;
$340,000--Wildlife Conservation Society, Bronx New
York, to develop a distance learning education project
for after school programs;
$298,000--Chicago Public School System, Illinois,
to provide vision screening, eye exams, and glasses for
low-income students;
$276,000--Chicago Public School System, Illinois,
to expand the Chicago Math, Science and Technology
Academies;
$266,000--City of Houston Public Library, Houston,
Texas for the ASPIRE after school program;
$213,000--Future Leaders of America, Inc., Oxnard,
California, to provide leadership training and
educational experiences to talented youth;
$213,000--Institute for Student Achievement,
Manhasset, New York to improve student learning
outcomes without social promotion;
$191,000--Bremen Community High School District
228, in Midlothian, Illinois, for a summer transition
program for incoming freshmen students;
$191,000--Center for Community Transformation in
Chicago, Illinois to support student fellowships and
ongoing secular educational activities in community
leadership and transformation, including curriculum
development;
$170,000--``ScienceClass in a Box'' educational
system, Hoboken, New Jersey, to enhance science and
math education in disadvantaged school districts;
$175,000--Merrill Area Public Schools in Merrill,
Wisconsin, to support activities designed to improve
educational outcomes for at-risk students;
$149,000--Great Lakes Science Center, Cleveland,
Ohio, to establish interactive biomedical exhibitions
and educational programs to increase minority awareness
of health careers;
$128,000--Centro Latino de Educacion Popular in Los
Angeles, California, program to provide literacy
training for Hispanic children and adults;
$128,000--City of Eugene, Oregon, for the
development of educational materials for a Wetland
Environmental Education Center;
$94,000--Dallas Urban League, Inc., Dallas, Texas,
to expand technology and literacy training for low-
income youth;
$85,000--Los Angeles Free Net, Encino, California,
to provide free internet access to schools and
libraries;
$85,000--Pasadena Independent School District,
Pasadena, Texas, to support an early learning program
focused on reading, including to purchase equipment and
supplies;
$50,000--Stevens Point Area School District,
Wisconsin for an initiative to improve achievement
among high school students;
$43,000--Santa Barbara County Education Office,
California for school violence prevention resource
kits;
$43,000--St. Vincent's Family Service Center,
Kansas City, Missouri, to implement a violence
prevention curriculum initiative;
$50,000--Merrill Area Public Schools in Merrill,
Wisconsin, for an initiative to improve achievement
among high school students;
$50,000--Superior School District, Superior,
Wisconsin for an initiative to improve achievement
among high school students;
$38,000--T.R. Hoover Community Development
Corporation in Dallas, Texas, to provide technology
training to children and their families in South
Dallas;
$400,000--Chester Upland School District, Chester,
PA, for recruitment, preparation and retention of
teachers and teacher candidates;
$100,000--Family Communications, Inc., in
Pittsburgh, PA, for the non-profit's Safe Havens
Training Project which is designed to train school
personnel in preventing and responding to acts of
violence;
$250,000--Northwest Regional Educational Laboratory
in Portland, OR for a reading tutor training program;
and
$230,000--University of Pennsylvania Health System
in Philadelphia, PA for development of a model high
school curriculum on genetics and ethics.
For International Education, the conference agreement
includes $10,000,000 as proposed by the Senate, instead of
$7,000,000 as proposed by the House. The conferees support
strengthening and expanding international education exchange
programs to more students and teachers, expanding the early
elementary school program begun last year in Bosnia, and
pairing more American states with countries in the former
Soviet Union and Central and Eastern Europe. Within the total,
$1,200,000 is included for the civic education program in
Northern Ireland and the Republic of Ireland and efforts in
emerging democracies in developing countries.
The conferees recognize the efforts of Strategies to
Accelerate Reading Success (STARS) in Las Vegas, NV where
students in low performing schools have shown marked
improvements in their reading and listening comprehension
skills. The conferees are also aware of the Great Films Project
Co., Inc. of New York and their ability to produce a
documentary that will provide an objective assessment of the
impact of Federal education programs on the education of our
Nation's youth.
The conferees encourage the Secretary to consider funding
a study by the National Research Council of the National
Academy of Sciences which provides a balanced evaluation of the
consequences of high stakes testing, using data from a
representative sample of states and local educational agencies.
The evaluation may examine the consequences for students in
general, minority students and students with limited English
proficiency related to academic achievement, dropout and
retention rates, quality of instruction, and the extent to
which parents are informed about assessment results and
consequences.
departmental management
The conference agreement includes $525,684,000 for
Departmental Management instead of $488,134,000 as proposed by
the House and $504,551,000 as proposed by the Senate. Within
this amount, the agreement provides $76,000,000 for the Office
of Civil Rights instead of $71,200,000 as proposed by the House
and $73,224,000 as proposed by the Senate. The agreement also
includes $36,500,000 for the Office of Inspector General
instead of $34,000,000 as proposed by the House and $35,456,000
as proposed by the Senate. The agreement includes $510,000 to
continue the Inspector General audit of the Department's
Student Financial Assistance financial statements.
The conferees are supportive of the HEATH Clearinghouse
which provides technical assistance and support services to
disabled students and institutions of higher education. In the
last five years, the number of requests for information has
increased from 30,000 per year to more than 75,000 per year.
The conferees encourage the Secretary to continue to support
the clearinghouse.
General Provisions
transfer authority
The conference agreement includes language to provide
general transfer authority for the Departments and agencies in
this bill except for the Department of Education (ED). This
authority was first provided in fiscal year 1996 with the
understanding that the flexibility it provides can only be
carried out when proper financial management controls and
systems are in place. ED did not receive an unqualified opinion
on its financial statements for either fiscal year 1998 or
1999. The conferees recognize that ED is working to rectify
problems that have been identified, but for fiscal year 2001
the conferees require a letter of reprogramming to the House
and Senate Appropriation Committees and a written response from
the Committees before any transfer of funds can be made.
The conferees reiterate that it is not the purpose of the
transfer authority to provide funding for new policy proposals
that can, and should, be included in subsequent budget
proposals. Absent the need to respond to emergencies or
unforeseen circumstances, this authority cannot be used simply
to increase funding for programs, projects or activities
because of disagreements over the funding level or the
difficulty or inconvenience with operating levels set by the
Congress.
TITLE I--TARGETING
The conference agreement includes language proposed by
the Senate directing the Comptroller General to evaluate
targeting within the title I program. The House bill contained
no similar provisions.
National Assessment Governing Board Date Change
The conference agreement includes a provision that makes
the terms of service for National Assessment Governing Board
members four years.
Recalculation of Cohort Default Rate
The conference agreement includes language changing the
process for appealing cohort default rate calculations so that
a school that misses the appeal deadline may retain eligibility
if a clear mistake was made in the data used to calculate the
rate.
compensation parity for auditors and examiners
The conference agreement includes an amendment to the
Higher Education Act of 1965 relating to compensation parity
for auditors and examiners.
tribal colleges
The conference agreement includes an amendment to the
Carl D. Perkins Vocational and Technical Education Act of 1998
relating to tribally controlled postsecondary vocational and
technical institutions.
security interests in student loans
The conference agreement includes an amendment to the
Higher Education Act of 1965 relating to perfection of security
interests in student loans.
historically black colleges and universities
The conference agreement includes an amendment to the
Higher Education Act of 1965 relating to default rates.
national constitution center
The conference agreement includes a provision which
provides $10,000,000 to the Secretary of Education to be
transferred to the Secretary of the Interior for an award to
the National Constitution Center to continue activities
authorized by P.L. 100-433.
character education
The conference agreement includes a modification to the
Safe and Drug-Free Schools Act for the development and
implementation of character education programs.
waiver review
The conference agreement includes a provision that
directs the Secretary to review the nursing program operated by
Graceland University in Iowa and specifies that the Secretary
may exercise waiver authority relating to this program.
leveraging educational assistance partnerships
The conference agreement includes an amendment to the
Higher Education Act of 1965 clarifying that funds provided
under the Special Leveraging Educational Assistance Partnership
Program may not be used for administrative purposes and that
matching funds must come from new sources in order to leverage
more state funding.
student support services
The conference agreement includes an amendment to Part A
of title IV of the Higher Education Act of 1965 which allows
grantees receiving funding under the Student Support Services
program within TRIO to use part of these funds for direct grant
aid to needy students. A grant provided under this provision
may not exceed the maximum appropriated Pell Grant, or be less
than the minimum appropriated Pell Grant, for the current
academic year. Grantees using funds for this purpose are
required to match at least 33 percent of the funds used for
grant aid in cash from non-federal sources and may not use more
than 20 percent of their grant amount for direct grant aid
purposes.
student loans interest rate
The conference agreement includes a provision that
replaces the interest rate formula for certain Parent Loans to
Students and Supplemental Loans for Students which used the
rates established by the auction of 52-week Treasury bills for
setting new interest rates each July 1st. Interest rates for
these loans will now be based on a new formula which uses the
weekly average of the one year constant maturity Treasury
yield, as published by the Board of Governors of the Federal
Reserve System, for the last calendar week ending on or before
June 26th preceding the July 1st effective date for interest
rate changes.
olympic scholarships
The conference agreement includes an amendment to the
Higher Education Act of 1965 designating scholarships made
under the Olympic Scholarships program as ``B.J. Stupak Olympic
Scholarships.''
property transfer
The conference agreement includes a provision that would
release a reversionary interest at San Francisco State
University.
impact aid
The conference agreement includes an amendment to the
Elementary and Secondary Education Act of 1965, as amended,
relating to certain school districts eligible for the Impact
Aid program.
TITLE IV--RELATED AGENCIES
Armed Forces Retirement Home
The conference agreement does not include an additional
advance appropriation for the Armed Forces Retirement Home as
proposed by the Senate. The House bill contained no similar
provision.
corperation for national and community service
domestic volunteer service programs, operating expenses
The conference agreement includes $303,850,000 for the
Domestic Volunteer Service programs instead of $294,527,000 as
proposed by the House and $302,504,000 as proposed by the
Senate.
Volunteers in Service to America (VISTA)
The conference agreement includes $83,074,000 for VISTA
as proposed by the Senate instead of $80,574,000 as proposed by
the House.
National Senior Volunteer Corps
The conference agreement includes $98,868,000 for the
Foster Grandparent Program (FGP) instead of $95,988,000 as
proposed by the House and $97,500,000 as proposed by the
Senate. The agreement includes $40,395,000 for the Senior
Companion Program (SCP) instead of $39,219,000 as proposed by
the House and $40,219,000 as proposed by the Senate. The
agreement also includes $48,884,000 for the Retired Senior
Volunteer Program (RSVP) instead $46,117,000 as proposed by the
House and $48,117,000 as proposed by the Senate.
One-third of the increases provided for the FGP, SCP, and
RSVP programs shall be used to fund Programs of National
Significance expansion grants to allow existing FGP, RSVP and
SCP programs to expand the number of volunteers serving in
areas of critical need as identified by Congress in the
Domestic Volunteer Service Act.
Sufficient funding has been included to provide a 2
percent increase for administrative costs realized by all
current grantees in the FGP and SCP programs, and a 4 percent
increase for administrative costs realized by all current
grantees in the RSVP program. Funds remaining above these
amounts should be used to begin new FGP, RSVP and SCP programs
in geographic areas currently unserved. The conferees expect
these projects to be awarded via a nationwide competition among
potential community-based sponsors.
The Corporation for National and Community Service shall
comply with the directive that use of funding increases in the
Foster Grandparent Program, Retired and Senior Volunteer
Program and VISTA not be restricted to America Reads
activities. The conferees further direct that the Corporation
shall not stipulate a minimum or maximum amount for PNS grant
augmentations.
The conference agreement includes $400,000 for senior
demonstration activities as proposed by the House instead of
$1,494,000 as proposed by the Senate. These funds are to be
used to carry out evaluations and to provide recruitment,
training, and technical assistance to local projects as
described in the budget request. No new demonstration projects
may be begun with these funds. None of the increases provided
for FGP, SCP, or RSVP in fiscal year 2001 may be used for
demonstration activities. The conferees further expect that all
future demonstration activities will be funded through
allocations made through Part E of the Domestic Volunteer
Service Act.
Funds appropriated for fiscal year 2001 may not be used
to implement or support service collaboration agreements or any
other changes in the administration and/or governance of
national service programs prior to passage of a bill by the
authorizing committees of jurisdiction specifying such changes.
Program Administration
The conference agreement includes $32,229,000 for program
administration of DVSA programs at the Corporation as proposed
by the House instead of $32,100,000 as proposed by the Senate.
Funding should be used for the new core financial management
system and to make other technology enhancements that will
improve customer service and field communications.
corporation for public broadcasting
The conference agreement includes language proposed by
the Senate providing an additional $20,000,000 for
digitalization, if specifically authorized by subsequent
legislation. The House bill contained no similar provision.
federal mediation and conciliation service
The conference agreement includes $38,200,000 for the
Federal Mediation and Conciliation Service as proposed by the
Senate instead of $37,500,000 as proposed by the House.
federal mine safety and health review commission
The conference agreement includes $6,320,000 for the
Federal Mine Safety and Health Review Commission as proposed by
the Senate instead of $6,200,000 as proposed by the House.
institute of museum and library services
The conference agreement includes $207,219,000 for the
Institute of Museum and Library Services instead of
$170,000,000 as proposed by the House and $168,000,000 as
proposed by the Senate. Within the amounts provided, the
conference agreement includes $39,219,000 for the following:
$921,000--The Mariners' Museum, Newport News, VA
for library archival and educational programming;
$461,000--DuPage County Children's Museum in
Naperville, IL for educational programming;
$369,000--National Baseball Hall of Fame Library,
Cooperstown New York for library improvements;
$92,000--City of Corona, Riverside, CA for library
technology improvements;
$6,000--City of Murrieta Public Library, Murrieta,
CA for technology improvements
$1,382,000--Sierra Madre Public Library, Sierra
Madre, CA for technology improvements;
$23,000--Brooklyn Public Library, Brooklyn, NY for
library materials;
$46,000--NY Public Library Staten Island branch for
book and archive enhancement;
$266,000--Edward H. Nabb Research Center for
Delmarva History and Culture at Salisbury State
University, Salisbury, MD for a history laboratory
project;
$461,000--Texas Tech University, Lubbock TX for the
Virtual Vietnam Archive Project;
$230,000--City of Ontario Public Library, Ontario,
CA for technology improvements;
$461,000--Southern Oregon University, Ashland, OR
for technology enhancements to the library's Government
Documents Collection;
$1,106,000--Christopher Newport University, Newport
News, VA for upgrade of Information Technology Center;
$2,600,000--Southeast Missouri State University
River Campus and Museum to restore the historic former
St. Vincent Seminary for museum programs;
$900,000--Heritage Harbor Museum in Providence,
Rhode Island for cataloging of materials and
operations;
$700,000--Institute for the Historic Study of Jazz
at the University of Idaho for the cataloguing,
digitalization, development of an on-line database, and
preservation of archival materials which it owns;
$1,800,000--Franklin Pierce College Life Center to
serve as a library for the rural southwest region of
New Hampshire;
$500,000--Louisville Zoo for the Diane Fossey
Mountain Gorilla program;
$150,000--Oregon Historical Society Permanent
Exhibition;
$250,000--Pittsburgh Children's Museum;
$510,000--Temple University Library for
digitalization of resources from its Urban History ad
African-American collections;
$576,000--Franklin Institute for the Design of Life
exhibition;
$925,000--Please Touch Museum in Philadelphia,
Pennsylvania;
$500,000--Alaska Native Heritage Center portion of
the New Trade Winds project;
$1,000,000--National Museum of Women in the Arts in
Washington D.C.;
$1,200,000--Mississippi River Museum and Discovery
Center in Dubuque, Iowa for exhibit and library
enhancement;
$650,000--Salisbury House Foundation in Des Moines,
Iowa to improve security and preservation of its
collection;
$150,000--Linn County, Iowa Historical Museum
History Center in support of the ``This Old Digital
City'' project;
$4,000,000--Newsline for the Blind to expand
services for the blind to libraries across the country
including $100,000 for the West Virginia Newsline for
the Blind and $100,000 for the Iowa Newsline for the
Blind;
$1,000,000--Clay Center for the Arts and Sciences
for a multimedia display screen, and the fabrication
and design of a science exhibit;
$650,000--Bishops Museum in Hawaii as part of the
``New Trade Winds'' project;
$500,000--Wisconsin Maritime Museum for interactive
exhibits;
$250,000--Natural History Museum of Los Angeles to
continue outreach and educational activities;
$400,000--Perkins Geology Museum at the University
of Vermont to digitalize its collection;
$400,000--Walt Whitman Cultural Arts Center in
Camden, New Jersey to expand cultural education
programs;
$400,000--Plainfield Public Library in Plainfield,
New Jersey to upgrade and expand computer and internet
services;
$150,000--Ducktown Arts District in Atlantic City,
New Jersey to expand access to cultural arts programs;
$400,000--Lake Champlain Science Center for
exhibits and programs;
$250,000--Foundation for the Arts, Music, and
Entertainment of Shreveport-Bossier, Inc.;
$100,000--Bryant College in Rhode Island for a
technology initiative linking libraries of institutions
of higher education;
$120,000--Fenton Historical Museum of Jamestown,
New York;
$461,000--Abraham Lincoln Bicentennial Commission;
$43,000--Sumter County Library, Sumter, South
Carolina for the acquisition of library materials;
$85,000--New York Botanical Garden, Bronx, New
York, to expand access to plant specimen database;
$128,000--Nassau County Museum of Art in Roslyn
Harbor, New York, to expand educational programs for
elementary and secondary students;
$128,000--Roberson Museum and Science Center in
Binghampton, New York for an educational science and
engineering pilot program;
$128,000--North Carolina Museum of Life and Science
for development of BioQuest exhibits;
$170,000--George Eastman House in Rochester, New
York, to digitally archive and catalog photographic
collections;
$213,000--Fitchburg Art Museum in Fitchburg,
Massachusetts to expand public access through
technology upgrades;
$298,000--Columbia College, Chicago, Center for
Black Music Research in Chicago, Illinois, for
education and outreach activities;
$298,000--Mystic Seaport, the Museum of America and
the Sea, in Connecticut, to develop an informal
learning laboratory;
$468,000--City of Houston Public Library, Houston,
Texas, for information technology development and
equipment;
$410,000--AE Seaman Mineral Museum in Houghton,
Michigan;
$680,000--AMISTAD Research Center at Tulane
University in New Orleans, Louisiana to expand
automation, electronic communications, educational
outreach and community involvement activities;
$723,000--New Bedford Whaling Museum in
Massachusetts for exhibits, technology upgrades and to
expand public access;
$723,000--The George C. Page Museum, Los Angeles,
California to expand education and outreach programs;
$850,000--The Children's Museum of Los Angeles,
California, for development of exhibits, educational
programs and teacher training;
$850,000--Berman Museum of Art of Ursinus College,
Collegeville, Pennsylvania for expansion of an arts
education program and community outreach activities;
$2,125,000--Silas Bronson Library in Waterbury,
Connecticut for information technology equipment and
upgrades;
$2,435,000--New York Public Library for the
development of a digital archive at the Schomburg
Center for Research in Black Culture to document
African American migration;
$425,000--National Aviary in Pittsburgh,
Pennsylvania, in collaboration with Carnegie Mellon
University, to develop and utilize interactive mobile
robots in support of distance learning;
$723,000--Old Sturbridge Village, Sturbridge,
Massachusetts for the development of a distance
learning project.
Medicare Payment Advisory Commission
The conference agreement provides $8,000,000 for the
Medicare Payment Advisory Commission (MedPAC), the same as both
the House and the Senate. A documented national shortage of
geriatricians, physicians who specialize in the management of
care for frail, older persons, exists. The shortage has
occurred, in part, because of inadequate Medicare reimbursement
and physician training payment restrictions. For this reason,
MedPAC should study the issue, reporting specifically on how
the hospital specific cap on residents for purposes of Medicare
graduate medical education payments impacts geriatric training
programs and providing recommendations regarding how to alter
the cap to resolve this problem.
National Commission on Libraries and Information Science
The conference agreement includes $1,495,000 for the
National Commission on Libraries and Information Science as
proposed by the Senate instead of $1,400,000 as proposed by the
House.
National Council on Disability
The conference agreement includes $2,615,000 for the
National Council on Disability as proposed by the Senate
instead of $2,450,000 as proposed by the House.
National Education Goals Panel
The conference agreement includes $1,500,000 for the
National Education Goals Panel instead of $2,350,000 as
proposed by the Senate. The House bill did not propose funding
for this agency.
National Labor Relations Board
The conference agreement includes $216,438,000 for the
National Labor Relations Board as proposed by the Senate
instead of $205,717,000 as proposed by the House.
National Mediation Board
The conference agreement includes $10,400,000 for the
National Mediation Board as proposed by the Senate instead of
$9,800,000 as proposed by the House.
Occupational Safety and Health Review Commission
The conference agreement includes $8,720,000 for the
Occupational Safety and Health Review Commission as proposed by
the Senate instead of $8,600,000 as proposed by the House.
Railroad Retirement Board
LIMITATION ON ADMINISTRATION
The conference agreement includes a limitation on
transfers from the railroad trust funds of $95,000,000 for
administrative expenses as proposed by the House instead of
$92,500,000 as proposed by the Senate.
OFFICE OF INSPECTOR GENERAL
The conference agreement includes a limitation on
transfers from the railroad trust funds of $5,700,000 for
administrative expenses of the Office of Inspector General as
proposed by the Senate instead of $5,380,000 as proposed by the
House.
Social Security Administration
SUPPLEMENTAL SECURITY INCOME PROGRAM
The conference agreement includes $23,344,000,000 for the
Supplemental Security Income Program instead of $23,354,000,000
as proposed by the Senate and $23,127,000,000 as proposed by
the House.
LIMITATION ON ADMINISTRATIVE EXPENSES
The conference agreement includes a limitation of
$7,124,000,000 on transfers from the Social Security and
Medicare trust funds and Supplemental Security Income program
for administrative activities instead of $6,978,036,000 as
proposed by the House and $7,010,800,000 as proposed by the
Senate.
The conference agreement includes language proposed by
the House clarifying that the Social Security Administration
may use unexpended funds for investment in information
technology and telecommunications hardware and software
infrastructure, including related equipment and non-payroll
expenses associated solely with information technology and
telecommunications technology. The agreement also includes
language proposed by the House that requires the Secretary of
the Treasury to reimburse the Trust Fund from the General Fund
for the cost of official time for federal employees and
facilities and support services for labor organizations. The
Senate bill contained no similar provisions.
OFFICE OF INSPECTOR GENERAL
The conference agreement includes $69,444,000 for the
Office of Inspector General through a combination of general
revenues and limitations on trust fund transfers as proposed by
the Senate instead of $65,752,000 as proposed by the House.
United States Institute of Peace
The conference agreement includes $15,000,000 for the
United States Institute of Peace as proposed by the House
instead of $12,951,000 as proposed by the Senate. The conferees
direct the United States Institute of Peace to provide
information in the fiscal year 2002 Congressional budget
justification regarding the use of appropriated funds in the
Endowment. Included in this information should be the total
amount of appropriated funds transferred into the Endowment
from the most recent fiscal year available, the total amount of
interest earned in the fiscal year on those funds, a list of
all dates in which draw downs occur and those amounts, and a
beginning and end of year balance of the Endowment.
TITLE V--GENERAL PROVISIONS
Distribution of Sterile Needles
The conference agreement includes a provision proposed by
the House that prohibits the use of funds in this Act to carry
out any program of distributing sterile needles or syringes for
the hypodermic injection of any illegal drug. The Senate bill
contained a similar provision except that it would have allowed
for such a program if the Secretary of Health and Human
Services determines that these programs are effective in
preventing the spread of HIV and do not encourage the use of
illegal drugs.
Fifth Quarter Obligations
The conference agreement does not include a provision
proposed by both the House and Senate to allow fiscal year 2000
unobligated balances for salaries and expenses to remain
available through the first quarter of fiscal year 2001.
Restoring SSI Benefits Payments to Appropriate Year
The conference agreement does not include a provision
proposed by the House to restore benefit payments for
Supplemental Security Income to the appropriate year. The
Senate bill contained no similar provision.
Evaluation of Abstinence Education Programs
The conference agreement includes a provision proposed by
the House to extend the funding available for evaluations of
abstinence education programs to 2005 and provides for an
interim report not later than January 1, 2002. The Senate bill
contained no similar provision.
Temporary Assistance to Needy Families (TANF)
The conference agreement does not include a provision
proposed by the Senate to reduce TANF supplemental grants in
fiscal year 2001. The House bill contained no similar
provision.
Discretionary Advance Appropriation Reduction
The conference agreement does not include a provision
proposed by the House to rescind funds from the Payments to
States for the Child Care and Development Block Grant if the
total level of discretionary advance appropriations for fiscal
year 2002 exceeds $23,500,000,000. The Senate bill contained no
similar provision.
Unique Health Identifier
The conference agreement includes a provision proposed by
the Senate to prohibit the promulgation or adoption of any
final standard relating to a unique health identifier until
legislation is enacted specifically approving the standard. The
House bill contained a similar provision except it did not
provide for legislative action.
State Supplementary Payments
The conference agreement includes language proposed by
the Senate that accelerates the effective date of current law
requiring a State that has entered into an agreement with the
Social Security Administration for Federal administration of
State supplementary payments be required to remit payments and
fees no later than the business day preceeding the SSI payment
from September, 2000 to September, 2001.
Military Recruiting at Secondary Schools
The conference agreement does not include a provision
proposed by the House preventing secondary schools from
prohibiting military recruitment. The Senate bill contained no
similar provision.
NIH License Agreements
The conferees do not include a provision proposed by the
House regarding NIH license agreements. The Senate bill
contained no similar provision.
Across-the-Board Administrative and Related Expenses Reduction
The conference agreement includes a provision to reduce
administrative and related expenses of the Departments of
Labor, Health and Human Services, and Education by $25,000,000.
Emergency Contraception Distribution Through School Clinics
The conference agreement does not include a provision
proposed by the Senate to prohibit the distribution of or
prescription for postcoital emergency contraception to an
unemancipated minor on the premises or in the facilities of any
elementary or secondary school. The House bill contained no
similar provision.
Rights of Residents of Certain Facilities
The conference agreement does not include a provision
proposed by the Senate to amend the Public Health Service Act
to add a new section titled ``Requirement Relating to the
Rights of Residents of Certain Facilities''. The House bill
contained no similar provision.
Sense of the Senate on Early Head Start
The conference agreement deletes without prejudice a
Sense of the Senate provision regarding blood lead screening
tests on children enrolled in early head start programs. The
House bill contained no similar provision.
Sense of the Senate on a Study of Sexual Abuse in Schools
The conference agreement deletes without prejudice a
Sense of the Senate provision regarding a study on the issue of
sexual abuse in schools. The House bill contained no similar
provision.
GAO Study into Federal Fetal Tissue Practices
The conference agreement does not include a provision
proposed by the Senate requesting a GAO study into Federal
fetal tissue practices. The House bill contained no similar
provision.
Genetic Information Nondiscrimination in Health Insurance Act of 1999
The conference agreement does not include a provision
proposed by the Senate regarding genetic information. The House
bill contained no similar provision.
Health Care Access and Protections for Consumers
The conference agreement does not include the health care
access and protections for consumers provision as proposed by
the Senate. The House bill contained no similar provision.
Human Papillomavirus
The conference agreement includes a provision related to
human papillomavirus. The House and Senate bills contained no
similar provision.
Saccharin Labeling
The conference agreement includes a provision that
repeals the mandated saccharin warning label. The House and
Senate bills contained no similar provision.
special benefits for certain world war ii veterans
The conference agreement includes a provision which
allows a State and the Commissioner of Social Security to enter
into an agreement under which the Commissioner would make State
payments, on behalf of the State, to supplement federal
payments provided under Title VIII of the Social Security Act.
Statutory employees
The Conferees note that, given the complexity of issues
that were considered under prior law in correctly determining
the amount of Supplemental Security Income payable to
individuals who are classified as ``statutory employees'', or
their dependents, that in the past cases may have been
determined erroneously. The Conferees urge the Social Security
Administration to act favorably on requests for waiver of
overpayment that may have accrued in such cases.
TITLE VI--ASSETS FOR INDEPENDENCE ACT
The conference agreement includes amendments to the
Assets for Independence Act to make technical and conforming
changes to ensure accurate research and measurement of the
effectiveness of Individual Development Accounts.
TITLE VII--PHYSICAL EDUCATION FOR PROGRESS PROGRAM
The conference agreement includes the Physical Education
for Progress program which will enable local educational
agencies to initiate, expand, and improve physical education
programs for all K-12 students.
TITLE VIII--EARLY LEARNING OPPORTUNITIES
The conference agreement includes the Early Learning
Opportunities Act, which is designed to help states increase
the availability of voluntary programs, services, and
activities that support early childhood education.
TITLE IX--RURAL EDUCATION
The conference agreement includes the Rural Achievement
Act, which amends Part J of Title X of the Elementary and
Secondary Education Act (ESEA) of 1965 to better address the
different needs of small, rural school districts. Under this
provision, a local educational agency (LEA) would be able to
combine funding under various ESEA programs to support
compensatory education, teacher professional development,
education technology, and school drug and violence prevention
activities authorized under ESEA that are intended to improve
the academic achievement of elementary and secondary school
students.
Conference Agreement
The following table displays the amounts agreed to for
each program, project or activity with appropriate comparisons:
LEGISLATIVE BRANCH APPROPRIATIONS
The conference agreement would enact the provisions of
H.R. 5657 as introduced on December 14, 2000. The text of that
bill follows:
A BILL Making appropriations for the Legislative Branch for the fiscal
year ending September 30, 2001, and for other purposes.
Be it enacted by the Senate and House of Representatives
of the United States of America in Congress assembled, That the
following sums are appropriated, out of any money in the
Treasury not otherwise appropriated, for the Legislative Branch
for the fiscal year ending September 30, 2001, and for other
purposes, namely:
TITLE I--CONGRESSIONAL OPERATIONS
SENATE
payment to widows and heirs of deceased members of congress
For a payment to Nancy Nally Coverdell, widow of Paul D.
Coverdell, late a Senator from Georgia, $141,300.
expense allowances
For expense allowances of the Vice President, $10,000; the
President Pro Tempore of the Senate, $10,000; Majority Leader
of the Senate, $10,000; Minority Leader of the Senate, $10,000;
Majority Whip of the Senate, $5,000; Minority Whip of the
Senate, $5,000; and Chairmen of the Majority and Minority
Conference Committees, $3,000 for each Chairman; and Chairmen
of the Majority and Minority Policy Committees, $3,000 for each
Chairman; in all, $62,000.
representation allowances for the majority and minority leaders
For representation allowances of the Majority and Minority
Leaders of the Senate, $15,000 for each such Leader; in all,
$30,000.
Salaries, Officers and Employees
For compensation of officers, employees, and others as
authorized by law, including agency contributions, $92,321,000,
which shall be paid from this appropriation without regard to
the below limitations, as follows:
office of the vice president
For the Office of the Vice President, $1,785,000.
office of the president pro tempore
For the Office of the President Pro Tempore, $453,000.
offices of the majority and minority leaders
For Offices of the Majority and Minority Leaders,
$2,742,000.
offices of the majority and minority whips
For Offices of the Majority and Minority Whips, $1,722,000.
committee on appropriations
For salaries of the Committee on Appropriations,
$6,917,000.
conference committees
For the Conference of the Majority and the Conference of
the Minority, at rates of compensation to be fixed by the
Chairman of each such committee, $1,152,000 for each such
committee; in all, $2,304,000.
offices of the secretaries of the conference of the majority and the
conference of the minority
For Offices of the Secretaries of the Conference of the
Majority and the Conference of the Minority, $590,000.
policy committees
For salaries of the Majority Policy Committee and the
Minority Policy Committee, $1,171,000 for each such committee;
in all, $2,342,000.
office of the chaplain
For Office of the Chaplain, $288,000.
office of the secretary
For Office of the Secretary, $14,738,000.
office of the sergeant at arms and doorkeeper
For Office of the Sergeant at Arms and Doorkeeper,
$34,811,000.
offices of the secretaries for the majority and minority
For Offices of the Secretary for the Majority and the
Secretary for the Minority, $1,292,000.
agency contributions and related expenses
For agency contributions for employee benefits, as
authorized by law, and related expenses, $22,337,000.
Office of the Legislative Counsel of the Senate
For salaries and expenses of the Office of the Legislative
Counsel of the Senate, $4,046,000.
Office of Senate Legal Counsel
For salaries and expenses of the Office of Senate Legal
Counsel, $1,069,000.
Expense Allowances of the Secretary of the Senate, Sergeant at Arms and
Doorkeeper of the Senate, and Secretaries for the Majority and Minority
of the Senate
For expense allowances of the Secretary of the Senate,
$3,000; Sergeant at Arms and Doorkeeper of the Senate, $3,000;
Secretary for the Majority of the Senate, $3,000; Secretary for
the Minority of the Senate, $3,000; in all, $12,000.
Contingent Expenses of the Senate
inquiries and investigations
For expenses of inquiries and investigations ordered by the
Senate, or conducted pursuant to section 134(a) of Public Law
601, Seventy-ninth Congress, as amended, section 112 of Public
Law 96-304 and Senate Resolution 281, agreed to March 11, 1980,
$73,000,000.
expenses of the united states senate caucus on international narcotics
control
For expenses of the United States Senate Caucus on
International Narcotics Control, $370,000.
secretary of the senate
For expenses of the Office of the Secretary of the Senate,
$2,077,000.
sergeant at arms and doorkeeper of the senate
For expenses of the Office of the Sergeant at Arms and
Doorkeeper of the Senate, $71,511,000, of which $2,500,000
shall remain available until September 30, 2003.
miscellaneous items
For miscellaneous items, $8,655,000.
senators' official personnel and office expense account
For Senators' Official Personnel and Office Expense
Account, $253,203,000.
official mail costs
For expenses necessary for official mail costs of the
Senate $300,000.
administrative provisions
Section 1. Semiannual Report. (a) In General.--Section
105(a) of the Legislative Branch Appropriations Act, 1965 (2
U.S.C. 104a) is amended by adding at the end the following:
``(5)(A) Notwithstanding the requirements of paragraph (1)
relating to the level of detail of statement and itemization,
each report by the Secretary of the Senate required under such
paragraph shall be compiled at a summary level for each office
of the Senate authorized to obligate appropriated funds.
``(B) Subparagraph (A) shall not apply to the reporting of
expenditures relating to personnel compensation, travel and
transportation of persons, other contractual services, and
acquisition of assets.
``(C) In carrying out this paragraph the Secretary of the
Senate shall apply the Standard Federal Object Classification
of Expenses as the Secretary determines appropriate.''.
(b) Effective Date and Application.--
(1) In general.--Subject to paragraph (2), the
amendment made by this section shall take effect on the
date of enactment of this Act.
(2) First report after enactment.--The Secretary of
the Senate may elect to compile and submit the report
for the semiannual period during which the date of
enactment of this section occurs, as if the amendment
made by this section had not been enacted.
Sec. 2. Senate Employee Pay Adjustments. Section 4 of the
Federal Pay Comparability Act of 1970 (2 U.S.C. 60a-1) is
amended--
(1) in subsection (a)--
(A) by inserting ``(or section 5304 or
5304a of such title, as applied to employees
employed in the pay locality of the Washington,
D.C.-Baltimore, Maryland consolidated
metropolitan statistical area)'' after
``employees under section 5303 of title 5,
United States Code,''; and
(B) by inserting ``(and, as the case may
be, section 5304 or 5304a of such title, as
applied to employees employed in the pay
locality of the Washington, D.C.-Baltimore,
Maryland consolidated metropolitan statistical
area)'' after ``the President under such
section 5303'';
(2) by redesignating subsection (e) as subsection
(f ); and
(3) by inserting after subsection (d) the
following:
``(e) Any percentage used in any statute specifically
providing for an adjustment in rates of pay in lieu of an
adjustment made under section 5303 of title 5, United States
Code, and, as the case may be, section 5304 or 5304a of such
title for any calendar year shall be treated as the percentage
used in an adjustment made under such section 5303, 5304, or
5304a, as applicable, for purposes of subsection (a).''.
Sec. 3. (a) Section 6(c) of the Legislative Branch
Appropriations Act, 1999 (2 U.S.C. 121b-1(c)) is amended--
(1) by striking ``and agency contributions'' in
paragraph (2)(A), and
(2) by adding at the end the following:
``(3) Agency contributions for employees of Senate
Hair Care Services shall be paid from the
appropriations account for `Salaries, Officers and
Employees'.''.
(b) This section shall apply to pay periods beginning on or
after October 1, 2000.
Sec. 4. (a) There is established in the Treasury of the
United States a revolving fund to be known as the Senate Health
and Fitness Facility Revolving Fund (``the revolving fund'').
(b) The Architect of the Capitol shall deposit in the
revolving fund--
(1) any amounts received as dues or other
assessments for use of the Senate Health and Fitness
Facility, and
(2) any amounts received from the operation of the
Senate waste recycling program.
(c) Subject to the approval of the Committee on
Appropriations of the Senate, amounts in the revolving fund
shall be available to the Architect of the Capitol, without
fiscal year limitation, for payment of costs of the Senate
Health and Fitness Facility.
(d) The Architect of the Capitol shall withdraw from the
revolving fund and deposit in the Treasury of the United States
as miscellaneous receipts all moneys in the revolving fund that
the Architect determines are in excess of the current and
reasonably foreseeable needs of the Senate Health and Fitness
Facility.
(e) Subject to the approval of the Committee on Rules and
Administration of the Senate, the Architect of the Capitol may
issue such regulations as may be necessary to carry out the
provisions of this section.
Sec. 5. For each fiscal year (commencing with the fiscal
year ending September 30, 2001), there is authorized an expense
allowance for the Chairmen of the Majority and Minority Policy
Committees which shall not exceed $3,000 each fiscal year for
each such Chairman; and amounts from such allowance shall be
paid to either of such Chairmen only as reimbursement for
actual expenses incurred by him and upon certification and
documentation of such expenses, and amounts so paid shall not
be reported as income and shall not be allowed as a deduction
under the Internal Revenue Code of 1986.
Sec. 6. (a) The head of the employing office of an employee
of the Senate may, upon termination of employment of the
employee, authorize payment of a lump sum for the accrued
annual leave of that employee if--
(1) the head of the employing office--
(A) has approved a written leave policy
authorizing employees to accrue leave and
establishing the conditions upon which accrued
leave may be paid; and
(B) submits written certification to the
Financial Clerk of the Senate of the number of
days of annual leave accrued by the employee
for which payment is to be made under the
written leave policy of the employing office;
and
(2) there are sufficient funds to cover the lump
sum payment.
(b)(1) A lump sum payment under this section shall not
exceed the lesser of--
(A) twice the monthly rate of pay of the employee;
or
(B) the product of the daily rate of pay of the
employee and the number of days of accrued annual leave
of the employee.
(2) The Secretary of the Senate shall determine the rates
of pay of an employee under paragraph (1) (A) and (B) on the
basis of the annual rate of pay of the employee in effect on
the date of termination of employment.
(c) Any payment under this section shall be paid from the
appropriation account or fund used to pay the employee.
(d) If an individual who received a lump sum payment under
this section is reemployed as an employee of the Senate before
the end of the period covered by the lump sum payment, the
individual shall refund an amount equal to the applicable pay
covering the period between the date of reemployment and the
expiration of the lump sum period. Such amount shall be
deposited to the appropriation account or fund used to pay the
lump sum payment.
(e) The Committee on Rules and Administration of the Senate
may prescribe regulations to carry out this section.
(f ) In this section, the term--
(1) ``employee of the Senate'' means any employee
whose pay is disbursed by the Secretary of the Senate,
except that the term does not include a member of the
Capitol Police or a civilian employee of the Capitol
Police; and
(2) ``head of the employing office'' means any
person with the final authority to appoint, hire,
discharge, and set the terms, conditions, or privileges
of the employment of an individual whose pay is
disbursed by the Secretary of the Senate.
Sec. 7. (a) Agency contributions for employees whose
salaries are disbursed by the Secretary of the Senate from the
appropriations account ``Joint Economic Committee'' under the
heading ``JOINT ITEMS'' shall be paid from the Senate
appropriations account for ``Salaries, Officers and
Employees''.
(b) This section shall apply to pay periods beginning on or
after October 1, 2000.
Sec. 8. Section 316 of Public Law 101-302 (40 U.S.C. 188b-
6) is amended--
(1) in the first sentence of subsection (a) by
striking ``items of art, fine art, and historical
items'' and inserting ``works of art, historical
objects, documents or material relating to historical
matters for placement or exhibition'';
(2) in the second sentence of subsection (a)--
(A) by striking ``such items'' each place
it appears and inserting ``such works, objects,
documents, or material'' in each such place;
and
(B) by striking ``an item'' and inserting
``a work, object, document, or material''; and
(3) in subsection (b)--
(A) by striking ``such items of art'' and
inserting ``such works, objects, documents, or
materials''; and
(B) by striking ``shall'' and inserting
``may''.
HOUSE OF REPRESENTATIVES
Salaries and Expenses
For salaries and expenses of the House of Representatives,
$769,551,000, as follows:
house leadership offices
For salaries and expenses, as authorized by law,
$14,378,000, including: Office of the Speaker, $1,759,000,
including $25,000 for official expenses of the Speaker; Office
of the Majority Floor Leader, $1,726,000, including $10,000 for
official expenses of the Majority Leader; Office of the
Minority Floor Leader, $2,096,000, including $10,000 for
official expenses of the Minority Leader; Office of the
Majority Whip, including the Chief Deputy Majority Whip,
$1,466,000, including $5,000 for official expenses of the
Majority Whip; Office of the Minority Whip, including the Chief
Deputy Minority Whip, $1,096,000, including $5,000 for official
expenses of the Minority Whip; Speaker's Office for Legislative
Floor Activities, $410,000; Republican Steering Committee,
$765,000; Republican Conference, $1,255,000; Democratic
Steering and Policy Committee, $1,352,000; Democratic Caucus,
$668,000; nine minority employees, $1,229,000; training and
program development--majority, $278,000; and training and
program development--minority, $278,000.
Members' Representational Allowances
Including Members' Clerk Hire, Official Expenses of Members, and
Official Mail
For Members' representational allowances, including
Members' clerk hire, official expenses, and official mail,
$410,182,000.
Committee Employees
Standing Committees, Special and Select
For salaries and expenses of standing committees, special
and select, authorized by House resolutions, $92,196,000:
Provided, That such amount shall remain available for such
salaries and expenses until December 31, 2002.
Committee on Appropriations
For salaries and expenses of the Committee on
Appropriations, $20,628,000, including studies and examinations
of executive agencies and temporary personal services for such
committee, to be expended in accordance with section 202(b) of
the Legislative Reorganization Act of 1946 and to be available
for reimbursement to agencies for services performed: Provided,
That such amount shall remain available for such salaries and
expenses until December 31, 2002.
salaries, officers and employees
For compensation and expenses of officers and employees, as
authorized by law, $90,403,000, including: for salaries and
expenses of the Office of the Clerk, including not more than
$3,500, of which not more than $2,500 is for the Family Room,
for official representation and reception expenses,
$14,590,000; for salaries and expenses of the Office of the
Sergeant at Arms, including the position of Superintendent of
Garages, and including not more than $750 for official
representation and reception expenses, $3,692,000; for salaries
and expenses of the Office of the Chief Administrative Officer,
$58,550,000, of which $1,054,000 shall remain available until
expended, including $26,605,000 for salaries, expenses and
temporary personal services of House Information Resources, of
which $26,020,000 is provided herein: Provided, That of the
amount provided for House Information Resources, $6,497,000
shall be for net expenses of telecommunications: Provided
further, That House Information Resources is authorized to
receive reimbursement from Members of the House of
Representatives and other governmental entities for services
provided and such reimbursement shall be deposited in the
Treasury for credit to this account; for salaries and expenses
of the Office of the Inspector General, $3,249,000; for
salaries and expenses of the Office of General Counsel,
$806,000; for the Office of the Chaplain, $140,000; for
salaries and expenses of the Office of the Parliamentarian,
including the Parliamentarian and $2,000 for preparing the
Digest of Rules, $1,201,000; for salaries and expenses of the
Office of the Law Revision Counsel of the House, $2,045,000;
for salaries and expenses of the Office of the Legislative
Counsel of the House, $5,085,000; for salaries and expenses of
the Corrections Calendar Office, $832,000; and for other
authorized employees, $213,000.
allowances and expenses
For allowances and expenses as authorized by House
resolution or law, $141,764,000, including: supplies,
materials, administrative costs and Federal tort claims,
$2,235,000; official mail for committees, leadership offices,
and administrative offices of the House, $410,000; Government
contributions for health, retirement, Social Security, and
other applicable employee benefits, $138,726,000; and
miscellaneous items including purchase, exchange, maintenance,
repair and operation of House motor vehicles,
interparliamentary receptions, and gratuities to heirs of
deceased employees of the House, $393,000.
child care center
For salaries and expenses of the House of Representatives
Child Care Center, such amounts as are deposited in the account
established by section 312(d)(1) of the Legislative Branch
Appropriations Act, 1992 (40 U.S.C. 184g(d)(1)), subject to the
level specified in the budget of the Center, as submitted to
the Committee on Appropriations of the House of
Representatives.
Administrative Provisions
Sec. 101. During fiscal year 2001 and any succeeding fiscal
year, the Chief Administrative Officer of the House of
Representatives may--
(1) enter into contracts for the acquisition of
severable services for a period that begins in 1 fiscal
year and ends in the next fiscal year to the same
extent as the head of an executive agency under the
authority of section 303L of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 253l);
and
(2) enter into multi-year contracts for the
acquisitions of property and nonaudit-related services
to the same extent as executive agencies under the
authority of section 304B of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 254c).
Sec. 102. (a) Permitting New House Employees To Be Placed
Above Minimum Step of Compensation Level.--The House Employees
Position Classification Act (2 U.S.C. 291 et seq.) is amended
by striking section 10 (2 U.S.C. 299).
(b) Effective Date.--The amendment made by subsection (a)
shall apply with respect to employees appointed on or after
October 1, 2000.
Sec. 103. (a) Requiring Amounts Remaining in Members'
Representational Allowances To Be Used for Deficit Reduction or
To Reduce the Federal Debt.--Notwithstanding any other
provision of law, any amounts appropriated under this Act for
``HOUSE OF REPRESENTATIVES--Salaries and Expenses--Members'
Representational Allowances'' shall be available only for
fiscal year 2001. Any amount remaining after all payments are
made under such allowances for fiscal year 2001 shall be
deposited in the Treasury and used for deficit reduction (or,
if there is no Federal budget deficit after all such payments
have been made, for reducing the Federal debt, in such manner
as the Secretary of the Treasury considers appropriate).
(b) Regulations.--The Committee on House Administration of
the House of Representatives shall have authority to prescribe
regulations to carry out this section.
(c) Definition.--As used in this section, the term ``Member
of the House of Representatives'' means a Representative in, or
a Delegate or Resident Commissioner to, the Congress.
Sec. 104. (a) There is hereby appropriated for payment to
the Prince William County Public Schools $215,000, to be used
to pay for educational services for the son of Mrs. Evelyn
Gibson, the widow of Detective John Michael Gibson of the
United States Capitol Police.
(b) The payment under subsection (a) shall be made in
accordance with terms and conditions established by the
Committee on House Administration of the House of
Representatives.
(c) The funds used for the payment made under subsection
(a) shall be derived from the applicable accounts of the House
of Representatives.
JOINT ITEMS
For Joint Committees, as follows:
Joint Congressional Committee on Inaugural Ceremonies of 2001
For all construction expenses, salaries, and other expenses
associated with conducting the inaugural ceremonies of the
President and Vice President of the United States, January 20,
2001, in accordance with such program as may be adopted by the
joint committee authorized by Senate Concurrent Resolution 89,
agreed to March 14, 2000 (One Hundred Sixth Congress), and
Senate Concurrent Resolution 90, agreed to March 14, 2000 (One
Hundred Sixth Congress), $1,000,000 to be disbursed by the
Secretary of the Senate and to remain available until September
30, 2001. Funds made available under this heading shall be
available for payment, on a direct or reimbursable basis,
whether incurred on, before, or after, October 1, 2000:
Provided, That the compensation of any employee of the
Committee on Rules and Administration of the Senate who has
been designated to perform service for the Joint Congressional
Committee on Inaugural Ceremonies shall continue to be paid by
the Committee on Rules and Administration, but the account from
which such staff member is paid may be reimbursed for the
services of the staff member (including agency contributions
when appropriate) out of funds made available under this
heading.
administrative provision
Sec. 105. During fiscal year 2001 the Secretary of Defense
shall provide protective services on a non-reimbursable basis
to the United States Capitol Police with respect to the
following events:
(1) Upon request of the Chair of the Joint
Congressional Committee on Inaugural Ceremonies
established under Senate Concurrent Resolution 89, One
Hundred Sixth Congress, agreed to March 14, 2000, the
proceedings and ceremonies conducted for the
inauguration of the President-elect and Vice President-
elect of the United States.
(2) Upon request of the Speaker of the House of
Representatives and the President Pro Tempore of the
Senate, the joint session of Congress held to receive a
message from the President of the United States on the
State of the Union.
Joint Economic Committee
For salaries and expenses of the Joint Economic Committee,
$3,315,000, to be disbursed by the Secretary of the Senate.
Joint Committee on Taxation
For salaries and expenses of the Joint Committee on
Taxation, $6,430,000, to be disbursed by the Chief
Administrative Officer of the House.
For other joint items, as follows:
Office of the Attending Physician
For medical supplies, equipment, and contingent expenses of
the emergency rooms, and for the Attending Physician and his
assistants, including: (1) an allowance of $1,500 per month to
the Attending Physician; (2) an allowance of $500 per month
each to three medical officers while on duty in the Office of
the Attending Physician; (3) an allowance of $500 per month to
one assistant and $400 per month each not to exceed 11
assistants on the basis heretofore provided for such
assistants; and (4) $1,159,904 for reimbursement to the
Department of the Navy for expenses incurred for staff and
equipment assigned to the Office of the Attending Physician,
which shall be advanced and credited to the applicable
appropriation or appropriations from which such salaries,
allowances, and other expenses are payable and shall be
available for all the purposes thereof, $1,835,000, to be
disbursed by the Chief Administrative Officer of the House.
Capitol Police Board
Capitol Police
salaries
For the Capitol Police Board for salaries of officers,
members, and employees of the Capitol Police, including
overtime, hazardous duty pay differential, clothing allowance
of not more than $600 each for members required to wear
civilian attire, and Government contributions for health,
retirement, Social Security, and other applicable employee
benefits, $97,142,000, of which $47,053,000 is provided to the
Sergeant at Arms of the House of Representatives, to be
disbursed by the Chief Administrative Officer of the House, and
$50,089,000 is provided to the Sergeant at Arms and Doorkeeper
of the Senate, to be disbursed by the Secretary of the Senate:
Provided, That, of the amounts appropriated under this heading,
such amounts as may be necessary may be transferred between the
Sergeant at Arms of the House of Representatives and the
Sergeant at Arms and Doorkeeper of the Senate, upon approval of
the Committee on Appropriations of the House of Representatives
and the Committee on Appropriations of the Senate.
general expenses
For the Capitol Police Board for necessary expenses of the
Capitol Police, including motor vehicles, communications and
other equipment, security equipment and installation, uniforms,
weapons, supplies, materials, training, medical services,
forensic services, stenographic services, personal and
professional services, the employee assistance program, not
more than $2,000 for the awards program, postage, telephone
service, travel advances, relocation of instructor and liaison
personnel for the Federal Law Enforcement Training Center, and
$85 per month for extra services performed for the Capitol
Police Board by an employee of the Sergeant at Arms of the
Senate or the House of Representatives designated by the
Chairman of the Board, $6,772,000, to be disbursed by the
Capitol Police Board or their delegee: Provided, That,
notwithstanding any other provision of law, the cost of basic
training for the Capitol Police at the Federal Law Enforcement
Training Center for fiscal year 2001 shall be paid by the
Secretary of the Treasury from funds available to the
Department of the Treasury.
Administrative Provisions
Sec. 106. Amounts appropriated for fiscal year 2001 for the
Capitol Police Board for the Capitol Police may be transferred
between the headings ``salaries'' and ``general expenses'' upon
the approval of--
(1) the Committee on Appropriations of the House of
Representatives, in the case of amounts transferred
from the appropriation provided to the Sergeant at Arms
of the House of Representatives under the heading
``salaries'';
(2) the Committee on Appropriations of the Senate,
in the case of amounts transferred from the
appropriation provided to the Sergeant at Arms and
Doorkeeper of the Senate under the heading
``salaries''; and
(3) the Committees on Appropriations of the Senate
and the House of Representatives, in the case of other
transfers.
Sec. 107. (a) Appointment of Certifying Officers of the
Capitol Police.--The Chief Administrative Officer of the United
States Capitol Police, or when there is not a Chief
Administrative Officer the Capitol Police Board, shall appoint
certifying officers to certify all vouchers for payment from
funds made available to the United States Capitol Police.
(b) Responsibility and Accountability of Certifying
Officers.--
(1) In general.--Each officer or employee of the
Capitol Police who has been duly authorized in writing
by the Chief Administrative Officer, or the Capitol
Police Board if there is not a Chief Administrative
Officer, to certify vouchers pursuant to subsection (a)
shall--
(A) be held responsible for the existence
and correctness of the facts recited in the
certificate or otherwise stated on the voucher
or its supporting papers and for the legality
of the proposed payment under the appropriation
or fund involved;
(B) be held responsible and accountable for
the correctness of the computations of
certified vouchers; and
(C) be held accountable for and required to
make good to the United States the amount of
any illegal, improper, or incorrect payment
resulting from any false, inaccurate, or
misleading certificate made by such officer or
employee, as well as for any payment prohibited
by law or which did not represent a legal
obligation under the appropriation or fund
involved.
(2) Relief by comptroller general.--The Comptroller
General may, at the Comptroller General's discretion,
relieve such certifying officer or employee of
liability for any payment otherwise proper if the
Comptroller General finds--
(A) that the certification was based on
official records and that the certifying
officer or employee did not know, and by
reasonable diligence and inquiry could not have
ascertained, the actual facts; or
(B) that the obligation was incurred in
good faith, that the payment was not contrary
to any statutory provision specifically
prohibiting payments of the character involved,
and the United States has received value for
such payment.
(c) Enforcement of Liability.--The liability of the
certifying officers of the United States Capitol Police shall
be enforced in the same manner and to the same extent as
currently provided with respect to the enforcement of the
liability of disbursing and other accountable officers, and
such officers shall have the right to apply for and obtain a
decision by the Comptroller General on any question of law
involved in a payment on any vouchers presented to them for
certification.
Sec. 108. Chief Administrative Officer.--(a) There shall be
within the Capitol Police an Office of Administration to be
headed by a Chief Administrative Officer:
(1) The Chief Administrative Officer shall be
appointed by the Comptroller General after consultation
with the Capitol Police Board, and shall report to and
serve at the pleasure of the Comptroller General.
(2) The Comptroller General shall appoint as Chief
Administrative Officer an individual with the knowledge
and skills necessary to carry out the responsibilities
for budgeting, financial management, information
technology, and human resource management described in
this section.
(3) The Chief Administrative Officer shall receive
basic pay at a rate determined by the Comptroller
General, but not to exceed the annual rate of basic pay
payable for ES-2 of the Senior Executive Service Basic
Rates Schedule established for members of the Senior
Executive Service of the General Accounting Office
under section 733 of title 31.
(4) The Capitol Police shall reimburse from
available appropriations any costs incurred by the
General Accounting Office under this section.
(b) The Chief Administrative Officer shall have the
following areas of responsibility:
(1) Budgeting.--The Chief Administrative Officer
shall--
(A) after consulting with the Chief of
Police on the portion of the budget covering
uniformed police force personnel, prepare and
submit to the Capitol Police Board an annual
budget for the Capitol Police; and
(B) execute the budget and monitor through
periodic examinations the execution of the
Capitol Police budget in relation to actual
obligations and expenditures.
(2) Financial management.--The Chief Administrative
Officer shall--
(A) oversee all financial management
activities relating to the programs and
operations of the Capitol Police;
(B) develop and maintain an integrated
accounting and financial system for the Capitol
Police, including financial reporting and
internal controls, which--
(i) complies with applicable
accounting principles, standards, and
requirements, and internal control
standards;
(ii) complies with any other
requirements applicable to such
systems;
(iii) provides for--
(I) complete, reliable,
consistent, and timely
information which is prepared
on a uniform basis and which is
responsive to financial
information needs of the
Capitol Police;
(II) the development and
reporting of cost information;
(III) the integration of
accounting and budgeting
information; and
(IV) the systematic
measurement of performance;
(C) direct, manage, and provide policy
guidance and oversight of Capitol Police
financial management personnel, activities, and
operations, including--
(i) the recruitment, selection, and
training of personnel to carry out
Capitol Police financial management
functions; and
(ii) the implementation of Capitol
Police asset management systems,
including systems for cash management,
debt collection, and property and
inventory management and control; and
(D) the Chief Administrative Officer shall
prepare annual financial statements for the
Capitol Police and provide for an annual audit
of the financial statements by an independent
public accountant in accordance with generally
accepted government auditing standards.
(3) Information technology.--The Chief
Administrative Officer shall--
(A) direct, coordinate, and oversee the
acquisition, use, and management of information
technology by the Capitol Police;
(B) promote and oversee the use of
information technology to improve the
efficiency and effectiveness of programs of the
Capitol Police; and
(C) establish and enforce information
technology principles, guidelines, and
objectives, including developing and
maintaining an information technology
architecture for the Capitol Police.
(4) Human resources.--The Chief Administrative
Officer shall--
(A) direct, coordinate, and oversee human
resource management activities of the Capitol
Police, except that with respect to uniformed
police force personnel, the Chief
Administrative Officer shall perform these
activities in cooperation with the Chief of the
Capitol Police;
(B) develop and monitor payroll and time
and attendance systems and employee services;
and
(C) develop and monitor processes for
recruiting, selecting, appraising, and
promoting employees.
(c) Administrative provisions with respect to the Office of
Administration:
(1) The Chief Administrative Officer is authorized
to select, appoint, employ, and discharge such officers
and employees as may be necessary to carry out the
functions, powers, and duties of the Office of
Administration but he shall not have the authority to
hire or discharge uniformed police force personnel.
(2) The Chief Administrative Officer may utilize
resources of another agency on a reimbursable basis to
be paid from available appropriations of the Capitol
Police.
(d) No later than 180 days after appointment, the Chief
Administrative Officer shall prepare, after consultation with
the Capitol Police Board and the Chief of the Capitol Police, a
plan--
(1) describing the policies, procedures, and
actions the Chief Administrative Officer will take in
carrying out the responsibilities assigned under this
section;
(2) identifying and defining responsibilities and
roles of all offices, bureaus, and divisions of the
Capitol Police for budgeting, financial management,
information technology, and human resources management;
and
(3) detailing mechanisms for ensuring that the
offices, bureaus, and divisions perform their
responsibilities and roles in a coordinated and
integrated manner.
(e) No later than September 30, 2001, the Chief
Administrative Officer shall prepare, after consultation with
the Capitol Police Board and the Chief of the Capitol Police, a
report on the Chief Administrative Officer's progress in
implementing the plan described in subsection (d) and
recommendations to improve the budgeting, financial,
information technology, and human resources management of the
Capitol Police, including organizational, accounting and
administrative control, and personnel changes.
(f) The Chief Administrative Officer shall submit the plan
required in subsection (d) and the report required in
subsection (e) to the Committees on Appropriations of the House
of Representatives and of the Senate, the Committee on House
Administration of the House of Representatives, and the
Committee on Rules and Administration of the Senate.
(g) As of October 1, 2002, unless otherwise determined by
the Comptroller General, the Chief Administrative Officer
established by section (a) will cease to be an employee of the
General Accounting Office and will become an employee of the
Capitol Police, and the Capitol Police Board shall assume all
responsibilities of the Comptroller General under this section.
Sec. 109. (a) Section 1(c) of Public Law 96-152 (40 U.S.C.
206-1) is amended by striking ``the annual rate'' and all that
follows and inserting the following: ``the rate of basic pay
payable for level ES-4 of the Senior Executive Service, as
established under subchapter VIII of chapter 53 of title 5,
United States Code (taking into account any comparability
payments made under section 5304(h) of such title).''.
(b) The amendment made by subsection (a) shall apply with
respect to pay periods beginning on or after the date of the
enactment of this Act.
Capitol Guide Service and Special Services Office
For salaries and expenses of the Capitol Guide Service and
Special Services Office, $2,371,000, to be disbursed by the
Secretary of the Senate: Provided, That no part of such amount
may be used to employ more than 43 individuals: Provided
further, That the Capitol Guide Board is authorized, during
emergencies, to employ not more than two additional individuals
for not more than 120 days each, and not more than 10
additional individuals for not more than 6 months each, for the
Capitol Guide Service.
Statements of Appropriations
For the preparation, under the direction of the Committees
on Appropriations of the Senate and the House of
Representatives, of the statements for the second session of
the One Hundred Sixth Congress, showing appropriations made,
indefinite appropriations, and contracts authorized, together
with a chronological history of the regular appropriations
bills as required by law, $30,000, to be paid to the persons
designated by the chairmen of such committees to supervise the
work.
OFFICE OF COMPLIANCE
Salaries and Expenses
For salaries and expenses of the Office of Compliance, as
authorized by section 305 of the Congressional Accountability
Act of 1995 (2 U.S.C. 1385), $1,820,000.
CONGRESSIONAL BUDGET OFFICE
Salaries and Expenses
For salaries and expenses necessary to carry out the
provisions of the Congressional Budget Act of 1974 (Public Law
93-344), including not more than $3,000 to be expended on the
certification of the Director of the Congressional Budget
Office in connection with official representation and reception
expenses, $28,493,000: Provided, That no part of such amount
may be used for the purchase or hire of a passenger motor
vehicle.
Administrative Provision
Sec. 110. Beginning on the date of enactment of this Act
and hereafter, the Congressional Budget Office may use
available funds to enter into contracts for the procurement of
severable services for a period that begins in one fiscal year
and ends in the next fiscal year and may enter into multi-year
contracts for the acquisition of property and services, to the
same extent as executive agencies under the authority of
section 303L and 304B, respectively, of the Federal Property
and Administrative Services Act (41 U.S.C. 253l and 254c).
ARCHITECT OF THE CAPITOL
Capitol Buildings and Grounds
capitol buildings
salaries and expenses
For salaries for the Architect of the Capitol, the
Assistant Architect of the Capitol, and other personal
services, at rates of pay provided by law; for surveys and
studies in connection with activities under the care of the
Architect of the Capitol; for all necessary expenses for the
maintenance, care and operation of the Capitol and electrical
substations of the Senate and House office buildings under the
jurisdiction of the Architect of the Capitol, including
furnishings and office equipment, including not more than
$1,000 for official reception and representation expenses, to
be expended as the Architect of the Capitol may approve; for
purchase or exchange, maintenance and operation of a passenger
motor vehicle; and not to exceed $20,000 for attendance, when
specifically authorized by the Architect of the Capitol, at
meetings or conventions in connection with subjects related to
work under the Architect of the Capitol, $43,689,000, of which
$3,843,000 shall remain available until expended: Provided,
That notwithstanding any other provision of law, such amount
shall be available for the position of Project Manager for the
Capitol Visitor Center, at a rate of compensation which does
not exceed the rate of basic pay payable for level ES-2 of the
Senior Executive Service, as established under subchapter VIII
of chapter 53 of title 5, United States Code (taking into
account any comparability payments made under section 5304(h)
of such title): Provided further, That effective on the date of
the enactment of this Act, any amount made available under this
heading under the Legislative Branch Appropriations Act, 2000,
shall be available for such position at such rate of
compensation.
capitol grounds
For all necessary expenses for care and improvement of
grounds surrounding the Capitol, the Senate and House office
buildings, and the Capitol Power Plant, $5,362,000, of which
$125,000 shall remain available until expended.
senate office buildings
For all necessary expenses for the maintenance, care and
operation of Senate office buildings; and furniture and
furnishings to be expended under the control and supervision of
the Architect of the Capitol, $63,974,000, of which $21,669,000
shall remain available until expended.
house office buildings
For all necessary expenses for the maintenance, care and
operation of the House office buildings, $32,750,000, of which
$123,000 shall remain available until expended.
capitol power plant
For all necessary expenses for the maintenance, care and
operation of the Capitol Power Plant; lighting, heating, power
(including the purchase of electrical energy) and water and
sewer services for the Capitol, Senate and House office
buildings, Library of Congress buildings, and the grounds about
the same, Botanic Garden, Senate garage, and air conditioning
refrigeration not supplied from plants in any of such
buildings; heating the Government Printing Office and
Washington City Post Office, and heating and chilled water for
air conditioning for the Supreme Court Building, the Union
Station complex, the Thurgood Marshall Federal Judiciary
Building and the Folger Shakespeare Library, expenses for which
shall be advanced or reimbursed upon request of the Architect
of the Capitol and amounts so received shall be deposited into
the Treasury to the credit of this appropriation, $39,415,000,
of which $523,000 shall remain available until expended:
Provided, That not more than $4,400,000 of the funds credited
or to be reimbursed to this appropriation as herein provided
shall be available for obligation during fiscal year 2001.
LIBRARY OF CONGRESS
Congressional Research Service
salaries and expenses
For necessary expenses to carry out the provisions of
section 203 of the Legislative Reorganization Act of 1946 (2
U.S.C. 166) and to revise and extend the Annotated Constitution
of the United States of America, $73,592,000: Provided, That no
part of such amount may be used to pay any salary or expense in
connection with any publication, or preparation of material
therefor (except the Digest of Public General Bills), to be
issued by the Library of Congress unless such publication has
obtained prior approval of either the Committee on House
Administration of the House of Representatives or the Committee
on Rules and Administration of the Senate.
GOVERNMENT PRINTING OFFICE
Congressional Printing and Binding
(including transfer of funds)
For authorized printing and binding for the Congress and
the distribution of Congressional information in any format;
printing and binding for the Architect of the Capitol; expenses
necessary for preparing the semimonthly and session index to
the Congressional Record, as authorized by law (44 U.S.C. 902);
printing and binding of Government publications authorized by
law to be distributed to Members of Congress; and printing,
binding, and distribution of Government publications authorized
by law to be distributed without charge to the recipient,
$71,462,000: Provided, That this appropriation shall not be
available for paper copies of the permanent edition of the
Congressional Record for individual Representatives, Resident
Commissioners or Delegates authorized under 44 U.S.C. 906:
Provided further, That this appropriation shall be available
for the payment of obligations incurred under the
appropriations for similar purposes for preceding fiscal years:
Provided further, That notwithstanding the 2-year limitation
under section 718 of title 44, United States Code, none of the
funds appropriated or made available under this Act or any
other Act for printing and binding and related services
provided to Congress under chapter 7 of title 44, United States
Code, may be expended to print a document, report, or
publication after the 27-month period beginning on the date
that such document, report, or publication is authorized by
Congress to be printed, unless Congress reauthorizes such
printing in accordance with section 718 of title 44, United
States Code: Provided further, That any unobligated or
unexpended balances in this account or accounts for similar
purposes for preceding fiscal years may be transferred to the
Government Printing Office revolving fund for carrying out the
purposes of this heading, subject to the approval of the
Committees on Appropriations of the House of Representatives
and Senate.
Administrative Provision
Sec. 111. (a) Congressional Printing and Binding for the
House Through Clerk of House.--
(1) In general.--Notwithstanding any provision of
title 44, United States Code, or any other law, there
are authorized to be appropriated to the Clerk of the
House of Representatives such sums as may be necessary
for congressional printing and binding services for the
House of Representatives.
(2) Preparation of estimates.--Estimated
expenditures and proposed appropriations for
congressional printing and binding services shall be
prepared and submitted by the Clerk of the House of
Representatives in accordance with title 31, United
States Code, in the same manner as estimates and
requests are prepared for other legislative branch
services under such title, except that such requests
shall be based upon the results of the study conducted
under subsection (b) (with respect to any fiscal year
covered by such study).
(3) Effective date.--This subsection shall apply
with respect to fiscal year 2003 and each succeeding
fiscal year.
(b) Study.--
(1) In general.--During fiscal year 2001, the Clerk
of the House of Representatives shall conduct a
comprehensive study of the needs of the House for
congressional printing and binding services during
fiscal year 2003 and succeeding fiscal years (including
transitional issues during fiscal year 2002), and shall
include in the study an analysis of the most cost-
effective program or programs for providing printed or
other media-based publications for House uses.
(2) Submission to committees.--The Clerk shall
submit the study conducted under paragraph (1) to the
Committee on House Administration of the House of
Representatives, who shall review the study and prepare
such regulations or other materials (including
proposals for legislation) as it considers appropriate
to enable the Clerk to carry out congressional printing
and binding services for the House in accordance with
this section.
(c) Definition.--In this section, the term ``congressional
printing and binding services'' means the following services:
(1) Authorized printing and binding for the
Congress and the distribution of congressional
information in any format.
(2) Preparing the semimonthly and session index to
the Congressional Record.
(3) Printing and binding of Government publications
authorized by law to be distributed to Members of
Congress.
(4) Printing, binding, and distribution of
Government publications authorized by law to be
distributed without charge to the recipient.
This title may be cited as the ``Congressional Operations
Appropriations Act, 2001''.
TITLE II--OTHER AGENCIES
BOTANIC GARDEN
Salaries and Expenses
For all necessary expenses for the maintenance, care and
operation of the Botanic Garden and the nurseries, buildings,
grounds, and collections; and purchase and exchange,
maintenance, repair, and operation of a passenger motor
vehicle; all under the direction of the Joint Committee on the
Library, $3,328,000, of which $25,000 shall remain available
until expended.
LIBRARY OF CONGRESS
Salaries and Expenses
For necessary expenses of the Library of Congress not
otherwise provided for, including development and maintenance
of the Union Catalogs; custody and custodial care of the
Library buildings; special clothing; cleaning, laundering and
repair of uniforms; preservation of motion pictures in the
custody of the Library; operation and maintenance of the
American Folklife Center in the Library; preparation and
distribution of catalog records and other publications of the
Library; hire or purchase of one passenger motor vehicle; and
expenses of the Library of Congress Trust Fund Board not
properly chargeable to the income of any trust fund held by the
Board, $282,838,000, of which not more than $6,500,000 shall be
derived from collections credited to this appropriation during
fiscal year 2001, and shall remain available until expended,
under the Act of June 28, 1902 (chapter 1301; 32 Stat. 480; 2
U.S.C. 150) and not more than $350,000 shall be derived from
collections during fiscal year 2001 and shall remain available
until expended for the development and maintenance of an
international legal information database and activities related
thereto: Provided, That the Library of Congress may not
obligate or expend any funds derived from collections under the
Act of June 28, 1902, in excess of the amount authorized for
obligation or expenditure in appropriations Acts: Provided
further, That the total amount available for obligation shall
be reduced by the amount by which collections are less than the
$6,850,000: Provided further, That of the total amount
appropriated, $10,459,575 is to remain available until expended
for acquisition of books, periodicals, newspapers, and all
other materials including subscriptions for bibliographic
services for the Library, including $40,000 to be available
solely for the purchase, when specifically approved by the
Librarian, of special and unique materials for additions to the
collections: Provided further, That of the total amount
appropriated, $2,506,000 is to remain available until expended
for the acquisition and partial support for implementation of
an Integrated Library System (ILS): Provided further, That of
the total amount appropriated, $10,000,000 is to remain
available until expended for salaries and expenses to carry out
the Russian Leadership Program enacted on May 21, 1999 (113
Stat. 93 et seq.): Provided further, That of the total amount
appropriated, $5,957,800 is to remain available until expended
for the purpose of teaching educators how to incorporate the
Library's digital collections into school curricula, which
amount shall be transferred to the educational consortium
formed to conduct the ``Joining Hands Across America: Local
Community Initiative'' project as approved by the Library:
Provided further, That of the total amount appropriated,
$404,000 is to remain available until expended for a
collaborative digitization and telecommunications project with
the United States Military Academy and any remaining balance is
available for other Library purposes: Provided further, That of
the total amount appropriated, $4,300,000 is to remain
available until expended for the purpose of developing a high
speed data transmission between the Library of Congress and
educational facilities, libraries, or networks serving western
North Carolina, and any remaining balance is available for
support of the Library's Digital Futures initiative.
Copyright Office
salaries and expenses
For necessary expenses of the Copyright Office,
$38,523,000, of which not more than $23,500,000, to remain
available until expended, shall be derived from collections
credited to this appropriation during fiscal year 2001 under 17
U.S.C. 708(d): Provided, That the Copyright Office may not
obligate or expend any funds derived from collections under 17
U.S.C. 708(d), in excess of the amount authorized for
obligation or expenditure in appropriations Acts: Provided
further, That not more than $5,783,000 shall be derived from
collections during fiscal year 2001 under 17 U.S.C. 111(d)(2),
119(b)(2), 802(h), and 1005: Provided further, That the total
amount available for obligation shall be reduced by the amount
by which collections are less than $29,283,000: Provided
further, That not more than $100,000 of the amount appropriated
is available for the maintenance of an ``International
Copyright Institute'' in the Copyright Office of the Library of
Congress for the purpose of training nationals of developing
countries in intellectual property laws and policies: Provided
further, That not more than $4,250 may be expended, on the
certification of the Librarian of Congress, in connection with
official representation and reception expenses for activities
of the International Copyright Institute and for copyright
delegations, visitors, and seminars.
Books for the Blind and Physically Handicapped
salaries and expenses
For salaries and expenses to carry out the Act of March 3,
1931 (chapter 400; 46 Stat. 1487; 2 U.S.C. 135a), $48,609,000,
of which $14,154,000 shall remain available until expended.
Furniture and Furnishings
For necessary expenses for the purchase, installation,
maintenance, and repair of furniture, furnishings, office and
library equipment, $4,892,000.
Administrative Provisions
Sec. 201. Appropriations in this Act available to the
Library of Congress shall be available, in an amount of not
more than $199,630, of which $59,300 is for the Congressional
Research Service, when specifically authorized by the Librarian
of Congress, for attendance at meetings concerned with the
function or activity for which the appropriation is made.
Sec. 202. (a) No part of the funds appropriated in this Act
shall be used by the Library of Congress to administer any
flexible or compressed work schedule which--
(1) applies to any manager or supervisor in a
position the grade or level of which is equal to or
higher than GS-15; and
(2) grants such manager or supervisor the right to
not be at work for all or a portion of a workday
because of time worked by the manager or supervisor on
another workday.
(b) For purposes of this section, the term ``manager or
supervisor'' means any management official or supervisor, as
such terms are defined in section 7103(a)(10) and (11) of title
5, United States Code.
Sec. 203. Appropriated funds received by the Library of
Congress from other Federal agencies to cover general and
administrative overhead costs generated by performing
reimbursable work for other agencies under the authority of
sections 1535 and 1536 of title 31, United States Code, shall
not be used to employ more than 65 employees and may be
expended or obligated--
(1) in the case of a reimbursement, only to such
extent or in such amounts as are provided in
appropriations Acts; or
(2) in the case of an advance payment, only--
(A) to pay for such general or
administrative overhead costs as are
attributable to the work performed for such
agency; or
(B) to such extent or in such amounts as
are provided in appropriations Acts, with
respect to any purpose not allowable under
subparagraph (A).
Sec. 204. Of the amounts appropriated to the Library of
Congress in this Act, not more than $5,000 may be expended, on
the certification of the Librarian of Congress, in connection
with official representation and reception expenses for the
incentive awards program.
Sec. 205. Of the amount appropriated to the Library of
Congress in this Act, not more than $12,000 may be expended, on
the certification of the Librarian of Congress, in connection
with official representation and reception expenses for the
Overseas Field Offices.
Sec. 206. (a) For fiscal year 2001, the obligational
authority of the Library of Congress for the activities
described in subsection (b) may not exceed $92,845,000.
(b) The activities referred to in subsection (a) are
reimbursable and revolving fund activities that are funded from
sources other than appropriations to the Library in
appropriations Acts for the legislative branch.
Sec. 207. Section 1 of the Act entitled ``An Act to
authorize acquisition of certain real property for the Library
of Congress, and for other purposes'', approved December 15,
1997 (2 U.S.C. 141 note) is amended by adding at the end the
following new subsection:
``(c) Transfer Payment by Architect.--Notwithstanding the
limitation on reimbursement or transfer of funds under
subsection (a) of this section, the Architect of the Capitol
may, not later than 90 days after acquisition of the property
under this section, transfer funds to the entity from which the
property was acquired by the Architect of the Capitol. Such
transfers may not exceed a total of $16,500,000.''.
Sec. 208. The Librarian of Congress may convert to
permanent positions 84 indefinite, time-limited positions in
the National Digital Library Program authorized in the
Legislative Branch Appropriations Act, 1996 for the Library of
Congress under the heading, ``Salaries and Expenses'' (Public
Law 104-53). Notwithstanding any other provision of law
regarding qualifications and methods of appointment of
employees of the Library of Congress, the Librarian may fill
these permanent positions through the non-competitive
conversion of the incumbents in the ``indefinite-not-to-
exceed'' positions to ``permanent'' positions.
Sec. 209. (a) In addition to any other transfer authority
provided by law, during fiscal year 2001 and fiscal years
thereafter, the Librarian of Congress may transfer to and among
available accounts of the Library of Congress amounts
appropriated to the Librarian from funds for the purchase,
installation, maintenance, and repair of furniture,
furnishings, and office and library equipment.
(b) Any amounts transferred pursuant to subsection (a)
shall be merged with and be available for the same purpose and
for the same period as the appropriation or account to which
such amounts are transferred.
(c) The Librarian may transfer amounts pursuant to
subsection (a) only with the approval of the Committees on
Appropriations of the House of Representatives and Senate.
Sec. 210. (a)(1) This subsection shall apply to any
individual who--
(A) is employed by the Library of Congress Child
Development Center (known as the ``Little Scholars
Child Development Center'', in this section referred to
as the ``Center'') established under section 205(g)(1)
of the Legislative Branch Appropriations Act, 1991; and
(B) makes an election to be covered by this
subsection with the Librarian of Congress, not later
than the later of--
(i) 60 days after the date of enactment of
this Act; or
(ii) 60 days after the date the individual
begins such employment.
(2)(A) Any individual described under paragraph (1) may be
credited, under section 8411 of title 5, United States Code,
for service as an employee of the Center before the date of
enactment of this Act, if such employee makes a payment of the
deposit under section 8411(f )(2) of such title without
application of section 8411(b)(3) of such title.
(B) An individual described under paragraph (1) shall be
credited under section 8411 of title 5, United States Code, for
any service as an employee of the Center on or after the date
of enactment of this Act, if such employee has such amounts
deducted and withheld from his pay as determined by the Office
of Personnel Management which would be deducted and withheld
from the basic pay of an employee under section 8422 of title
5, United States Code.
(3) Notwithstanding any other provision of this subsection,
any service performed by an individual described under
paragraph (1) as an employee of the Center is deemed to be
civilian service creditable under section 8411 of title 5,
United States Code, for purposes of qualifying for survivor
annuities and disability benefits under subchapters IV and V of
chapter 84 of such title, if such individual makes payment of
an amount, determined by the Office of Personnel Management,
which would have been deducted and withheld from the basic pay
of such individual if such individual had been an employee
subject to section 8422 of title 5, United States Code, for
such period so credited, together with interest thereon.
(4) An individual described under paragraph (1) shall be
deemed an employee for purposes of chapter 84 of title 5,
United States Code, including subchapter III of such title, and
may make contributions under section 8432 of such title
effective for the first applicable pay period beginning on or
after the date such individual elects coverage under this
section.
(5) The Office of Personnel Management shall accept the
certification of the Librarian of Congress concerning
creditable service for purposes of this subsection.
(b) Any individual who is employed by the Center on or
after the date of enactment of this Act shall be deemed an
employee under section 8901(1) of title 5, United States Code,
for purposes of health insurance coverage under chapter 89 of
such title. An individual who is an employee of the Center on
the date of enactment of this Act may elect coverage under this
subsection before the 60th day after the date of enactment of
this Act, and during such periods as determined by the Office
of Personnel Management for employees of the Center employed
after such date.
(c) An individual who is employed by the Center shall be
deemed an employee under section 8701(a) of title 5, United
States Code, for purposes of life insurance coverage under
chapter 87 of such title.
(d) Government contributions for individuals receiving
benefits under this section, as computed under sections 8423,
8432, 8708, and 8906 shall be made by the Librarian of Congress
from any appropriations available to the Library of Congress.
(e) The Library of Congress, directly or by agreement with
its designated representative, shall--
(1) process payroll for Center employees, including
making deductions and withholdings from the pay of
employees in the amounts determined under sections
8422, 8432, 8707, and 8905 of title 5, United States
Code;
(2) maintain appropriate personnel and payroll
records for Center employees, and transmit appropriate
information and records to the Office of Personnel
Management; and
(3) transmit funds for Government and employee
contributions under this section to the Office of
Personnel Management.
(f ) The Center shall--
(1) pay to the Library of Congress funds sufficient
to cover the gross salary and the employer's share of
taxes under section 3111 of the Internal Revenue Code
of 1986 for Center employees, in amounts computed by
the Library of Congress;
(2) as required by the Library of Congress,
reimburse the Library of Congress for reasonable
administrative costs incurred under subsection (e)(1);
(3) comply with regulations and procedures
prescribed by the Librarian of Congress for
administration of this section;
(4) maintain appropriate records on all Center
employees, as required by the Librarian of Congress;
and
(5) consult with the Librarian of Congress on the
administration and implementation of this section.
(g) The Librarian of Congress may prescribe regulations to
carry out this section.
ARCHITECT OF THE CAPITOL
Library Buildings and Grounds
structural and mechanical care
For all necessary expenses for the mechanical and
structural maintenance, care and operation of the Library
buildings and grounds, $15,970,000, of which $5,000,000 shall
remain available until expended.
GOVERNMENT PRINTING OFFICE
Office of Superintendent of Documents
salaries and expenses
(including transfer of funds)
For expenses of the Office of Superintendent of Documents
necessary to provide for the cataloging and indexing of
Government publications and their distribution to the public,
Members of Congress, other Government agencies, and designated
depository and international exchange libraries as authorized
by law, $27,954,000: Provided, That travel expenses, including
travel expenses of the Depository Library Council to the Public
Printer, shall not exceed $175,000: Provided further, That
amounts of not more than $2,000,000 from current year
appropriations are authorized for producing and disseminating
Congressional serial sets and other related publications for
1999 and 2000 to depository and other designated libraries:
Provided further, That any unobligated or unexpended balances
in this account or accounts for similar purposes for preceding
fiscal years may be transferred to the Government Printing
Office revolving fund for carrying out the purposes of this
heading, subject to the approval of the Committees on
Appropriations of the House of Representatives and Senate.
Government Printing Office Revolving Fund
The Government Printing Office is hereby authorized to make
such expenditures, within the limits of funds available and in
accord with the law, and to make such contracts and commitments
without regard to fiscal year limitations as provided by
section 9104 of title 31, United States Code, as may be
necessary in carrying out the programs and purposes set forth
in the budget for the current fiscal year for the Government
Printing Office revolving fund: Provided, That not more than
$2,500 may be expended on the certification of the Public
Printer in connection with official representation and
reception expenses: Provided further, That the revolving fund
shall be available for the hire or purchase of not more than 12
passenger motor vehicles: Provided further, That expenditures
in connection with travel expenses of the advisory councils to
the Public Printer shall be deemed necessary to carry out the
provisions of title 44, United States Code: Provided further,
That the revolving fund shall be available for temporary or
intermittent services under section 3109(b) of title 5, United
States Code, but at rates for individuals not more than the
daily equivalent of the annual rate of basic pay for level V of
the Executive Schedule under section 5316 of such title:
Provided further, That the revolving fund and the funds
provided under the headings ``Office of Superintendent of
Documents'' and ``salaries and expenses'' together may not be
available for the full-time equivalent employment of more than
3,285 workyears (or such other number of workyears as the
Public Printer may request, subject to the approval of the
Committees on Appropriations of the Senate and the House of
Representatives): Provided further, That activities financed
through the revolving fund may provide information in any
format: Provided further, That the revolving fund shall not be
used to administer any flexible or compressed work schedule
which applies to any manager or supervisor in a position the
grade or level of which is equal to or higher than GS-15:
Provided further, That expenses for attendance at meetings
shall not exceed $75,000.
GENERAL ACCOUNTING OFFICE
Salaries and Expenses
For necessary expenses of the General Accounting Office,
including not more than $10,000 to be expended on the
certification of the Comptroller General of the United States
in connection with official representation and reception
expenses; temporary or intermittent services under section
3109(b) of title 5, United States Code, but at rates for
individuals not more than the daily equivalent of the annual
rate of basic pay for level IV of the Executive Schedule under
section 5315 of such title; hire of one passenger motor
vehicle; advance payments in foreign countries in accordance
with section 3324 of title 31, United States Code; benefits
comparable to those payable under sections 901(5), 901(6), and
901(8) of the Foreign Service Act of 1980 (22 U.S.C. 4081(5),
4081(6), and 4081(8)); and under regulations prescribed by the
Comptroller General of the United States, rental of living
quarters in foreign countries, $384,867,000: Provided, That not
more than $1,900,000 of payments received under 31 U.S.C. 782
shall be available for use in fiscal year 2001: Provided
further, That not more than $1,100,000 of reimbursements
received under 31 U.S.C. 9105 shall be available for use in
fiscal year 2001: Provided further, That this appropriation and
appropriations for administrative expenses of any other
department or agency which is a member of the National
Intergovernmental Audit Forum or a Regional Intergovernmental
Audit Forum shall be available to finance an appropriate share
of either Forum's costs as determined by the respective Forum,
including necessary travel expenses of non-Federal
participants. Payments hereunder to the Forum may be credited
as reimbursements to any appropriation from which costs
involved are initially financed: Provided further, That this
appropriation and appropriations for administrative expenses of
any other department or agency which is a member of the
American Consortium on International Public Administration
(ACIPA) shall be available to finance an appropriate share of
ACIPA costs as determined by the ACIPA, including any expenses
attributable to membership of ACIPA in the International
Institute of Administrative Sciences.
TITLE III--GENERAL PROVISIONS
Sec. 301. No part of the funds appropriated in this Act
shall be used for the maintenance or care of private vehicles,
except for emergency assistance and cleaning as may be provided
under regulations relating to parking facilities for the House
of Representatives issued by the Committee on House
Administration and for the Senate issued by the Committee on
Rules and Administration.
Sec. 302. No part of the funds appropriated in this Act
shall remain available for obligation beyond fiscal year 2001
unless expressly so provided in this Act.
Sec. 303. Whenever in this Act any office or position not
specifically established by the Legislative Pay Act of 1929 is
appropriated for or the rate of compensation or designation of
any office or position appropriated for is different from that
specifically established by such Act, the rate of compensation
and the designation in this Act shall be the permanent law with
respect thereto: Provided, That the provisions in this Act for
the various items of official expenses of Members, officers,
and committees of the Senate and House of Representatives, and
clerk hire for Senators and Members of the House of
Representatives shall be the permanent law with respect
thereto.
Sec. 304. The expenditure of any appropriation under this
Act for any consulting service through procurement contract,
pursuant to section 3109 of title 5, United States Code, shall
be limited to those contracts where such expenditures are a
matter of public record and available for public inspection,
except where otherwise provided under existing law, or under
existing Executive order issued pursuant to existing law.
Sec. 305. (a) It is the sense of the Congress that, to the
greatest extent practicable, all equipment and products
purchased with funds made available in this Act should be
American-made.
(b) In providing financial assistance to, or entering into
any contract with, any entity using funds made available in
this Act, the head of each Federal agency, to the greatest
extent practicable, shall provide to such entity a notice
describing the statement made in subsection (a) by the
Congress.
(c) If it has been finally determined by a court or Federal
agency that any person intentionally affixed a label bearing a
``Made in America'' inscription, or any inscription with the
same meaning, to any product sold in or shipped to the United
States that is not made in the United States, such person shall
be ineligible to receive any contract or subcontract made with
funds provided pursuant to this Act, pursuant to the debarment,
suspension, and ineligibility procedures described in section
9.400 through 9.409 of title 48, Code of Federal Regulations.
Sec. 306. Such sums as may be necessary are appropriated to
the account described in subsection (a) of section 415 of
Public Law 104-1 to pay awards and settlements as authorized
under such subsection.
Sec. 307. Amounts available for administrative expenses of
any legislative branch entity which participates in the
Legislative Branch Financial Managers Council (LBFMC)
established by charter on March 26, 1996, shall be available to
finance an appropriate share of LBFMC costs as determined by
the LBFMC, except that the total LBFMC costs to be shared among
all participating legislative branch entities (in such
allocations among the entities as the entities may determine)
may not exceed $252,000.
Sec. 308. No part of any appropriation contained in this
Act under the heading ``Architect of the Capitol'' or ``Botanic
Garden'' shall be obligated or expended for a construction
contract in excess of $100,000, unless such contract includes a
provision that requires liquidated damages for contractor
caused delay in an amount commensurate with the daily net
usable square foot cost of leasing similar space in a first
class office building within two miles of the United States
Capitol multiplied by the square footage to be constructed
under the contract.
Sec. 309. Section 316 of Public Law 101-302 is amended in
the first sentence of subsection (a) by striking ``2000'' and
inserting ``2001''.
Sec. 310. Russian Leadership Program. Section 3011 of the
1999 Emergency Supplemental Appropriations Act (Public Law 106-
31; 113 Stat. 93) is amended--
(1) by striking ``fiscal years 1999 and 2000'' in
subsections (a)(1), (b)(4)(B), (d)(3), and (h)(1)(A)
and inserting ``fiscal years 2000 and 2001''; and
(2) by striking ``2001'' in subsection (a)(2),
(e)(1), and (h)(1)(B) and inserting ``2002''.
Sec. 311. (a)(1) Any State may request the Joint Committee
on the Library of Congress to approve the replacement of a
statue the State has provided for display in Statuary Hall in
the Capitol of the United States under section 1814 of the
Revised Statutes (40 U.S.C. 187).
(2) A request shall be considered under paragraph (1) only
if--
(A) the request has been approved by a resolution
adopted by the legislature of the State and the request
has been approved by the Governor of the State, and
(B) the statue to be replaced has been displayed in
the Capitol of the United States for at least 10 years
as of the time the request is made, except that the
Joint Committee may waive this requirement for cause at
the request of a State.
(b) If the Joint Committee on the Library of Congress
approves a request under subsection (a), the Architect of the
Capitol shall enter into an agreement with the State to carry
out the replacement in accordance with the request and any
conditions the Joint Committee may require for its approval.
Such agreement shall provide that--
(1) the new statue shall be subject to the same
conditions and restrictions as apply to any statue
provided by a State under section 1814 of the Revised
Statutes (40 U.S.C. 187), and
(2) the State shall pay any costs related to the
replacement, including costs in connection with the
design, construction, transportation, and placement of
the new statue, the removal and transportation of the
statue being replaced, and any unveiling ceremony.
(c) Nothing in this section shall be interpreted to permit
a State to have more than 2 statues on display in the Capitol
of the United States.
(d)(1) Subject to the approval of the Joint Committee on
the Library, ownership of any statue replaced under this
section shall be transferred to the State.
(2) If any statue is removed from the Capitol of the United
States as part of a transfer of ownership under paragraph (1),
then it may not be returned to the Capitol for display unless
such display is specifically authorized by Federal law.
(e) The Architect of the Capitol, upon the approval of the
Joint Committee on the Library and with the advice of the
Commission of Fine Arts as requested, is authorized and
directed to relocate within the United States Capitol any of
the statues received from the States under section 1814 of the
Revised Statutes (40 U.S.C. 187) prior to the date of the
enactment of this Act, and to provide for the reception,
location, and relocation of the statues received hereafter from
the States under such section.
Sec. 312. (a) Section 201 of the Legislative Branch
Appropriations Act, 1993 (40 U.S.C. 216c note) is amended by
striking ``$10,000,000'' each place it appears and inserting
``$14,500,000''.
(b) Section 201 of such Act is amended--
(1) by inserting ``(a)'' before ``Pursuant'', and
(2) by adding at the end the following:
``(b) The Architect of the Capitol is authorized to
solicit, receive, accept, and hold amounts under section
307E(a)(2) of the Legislative Branch Appropriations Act, 1989
(40 U.S.C. 216c(a)(2)) in excess of the $14,500,000 authorized
under subsection (a), but such amounts (and any interest
thereon) shall not be expended by the Architect without
approval in appropriation Acts as required under section
307E(b)(3) of such Act (40 U.S.C. 216c(b)(3)).''.
Sec. 313. Center for Russian Leadership Development. (a)
Establishment.--
(1) In general.--There is established in the
legislative branch of the Government a center to be
known as the ``Center for Russian Leadership
Development'' (the ``Center'').
(2) Board of trustees.--The Center shall be subject
to the supervision and direction of a Board of Trustees
which shall be composed of 9 members as follows:
(A) 2 members appointed by the Speaker of
the House of Representatives, 1 of whom shall
be designated by the Majority Leader of the
House of Representatives and 1 of whom shall be
designated by the Minority Leader of the House
of Representatives.
(B) 2 members appointed by the President
pro tempore of the Senate, 1 of whom shall be
designated by the Majority Leader of the Senate
and 1 of whom shall be designated by the
Minority Leader of the Senate.
(C) The Librarian of Congress.
(D) 4 private individuals with interests in
improving United States and Russian relations,
designated by the Librarian of Congress.
Each member appointed under this paragraph shall serve
for a term of 3 years. Any vacancy shall be filled in
the same manner as the original appointment and the
individual so appointed shall serve for the remainder
of the term. Members of the Board shall serve without
pay, but shall be entitled to reimbursement for travel,
subsistence, and other necessary expenses incurred in
the performance of their duties.
(b) Purpose and Authority of the Center.--
(1) Purpose.--The purpose of the Center is to
establish, in accordance with the provisions of
paragraph (2), a program to enable emerging political
leaders of Russia at all levels of government to gain
significant, firsthand exposure to the American free
market economic system and the operation of American
democratic institutions through visits to governments
and communities at comparable levels in the United
States.
(2) Grant program.--Subject to the provisions of
paragraphs (3) and (4), the Center shall establish a
program under which the Center annually awards grants
to government or community organizations in the United
States that seek to establish programs under which
those organizations will host Russian nationals who are
emerging political leaders at any level of government.
(3) Restrictions.--
(A) Duration.--The period of stay in the
United States for any individual supported with
grant funds under the program shall not exceed
30 days.
(B) Limitation.--The number of individuals
supported with grant funds under the program
shall not exceed 3,000 in any fiscal year.
(C) Use of funds.--Grant funds under the
program shall be used to pay--
(i) the costs and expenses incurred
by each program participant in
traveling between Russia and the United
States and in traveling within the
United States;
(ii) the costs of providing lodging
in the United States to each program
participant, whether in public
accommodations or in private homes; and
(iii) such additional
administrative expenses incurred by
organizations in carrying out the
program as the Center may prescribe.
(4) Application.--
(A) In general.--Each organization in the
United States desiring a grant under this
section shall submit an application to the
Center at such time, in such manner, and
accompanied by such information as the Center
may reasonably require.
(B) Contents.--Each application submitted
pursuant to subparagraph (A) shall--
(i) describe the activities for
which assistance under this section is
sought;
(ii) include the number of program
participants to be supported;
(iii) describe the qualifications
of the individuals who will be
participating in the program; and
(iv) provide such additional
assurances as the Center determines to
be essential to ensure compliance with
the requirements of this section.
(c) Establishment of Fund.--
(1) In general.--There is established in the
Treasury of the United States a trust fund to be known
as the ``Russian Leadership Development Center Trust
Fund'' (the ``Fund'') which shall consist of amounts
which may be appropriated, credited, or transferred to
it under this section.
(2) Donations.--Any money or other property
donated, bequeathed, or devised to the Center under the
authority of this section shall be credited to the
Fund.
(3) Fund management.--
(A) In general.--The provisions of
subsections (b), (c), and (d) of section 116 of
the Legislative Branch Appropriations Act, 1989
(2 U.S.C. 1105 (b), (c), and (d)), and the
provisions of section 117(b) of such Act (2
U.S.C. 1106(b)), shall apply to the Fund.
(B) Expenditures.--The Secretary of the
Treasury is authorized to pay to the Center
from amounts in the Fund such sums as the Board
of Trustees of the Center determines are
necessary and appropriate to enable the Center
to carry out the provisions of this section.
(d) Executive Director.--The Board shall appoint an
Executive Director who shall be the chief executive officer of
the Center and who shall carry out the functions of the Center
subject to the supervision and direction of the Board of
Trustees. The Executive Director of the Center shall be
compensated at the annual rate specified by the Board, but in
no event shall such rate exceed level III of the Executive
Schedule under section 5314 of title 5, United States Code.
(e) Administrative Provisions.--
(1) In general.--The provisions of section 119 of
the Legislative Branch Appropriations Act, 1989 (2
U.S.C. 1108) shall apply to the Center.
(2) Support provided by library of congress.--The
Library of Congress may disburse funds appropriated to
the Center, compute and disburse the basic pay for all
personnel of the Center, provide administrative, legal,
financial management, and other appropriate services to
the Center, and collect from the Fund the full costs of
providing services under this paragraph, as provided
under an agreement for services ordered under sections
1535 and 1536 of title 31, United States Code.
(f ) Authorization of Appropriations.--There are authorized
to be appropriated such sums as may be necessary to carry out
this section.
(g) Transfer of Funds.--Any amounts appropriated for use in
the program established under section 3011 of the 1999
Emergency Supplemental Appropriations Act (Public Law 106-31;
113 Stat. 93) shall be transferred to the Fund and shall remain
available without fiscal year limitation.
(h) Effective Dates.--
(1) In general.--This section shall take effect on
the date of enactment of this Act.
(2) Transfer.--Subsection (g) shall only apply to
amounts which remain unexpended on and after the date
the Board of Trustees of the Center certifies to the
Librarian of Congress that grants are ready to be made
under the program established under this section.
Sec. 314. Review of Proposed Changes to Export Thresholds
for Computers. Not more than 50 days after the date of the
submission of the report referred to in subsection (d) of
section 1211 of the National Defense Authorization Act for
Fiscal Year 1998 (50 U.S.C. App. 2404 note), the Comptroller
General of the United States shall submit an assessment to
Congress which contains an analysis of the new computer
performance levels being proposed by the President under such
section.
TITLE IV--EMERGENCY FISCAL YEAR 2000 SUPPLEMENTAL APPROPRIATIONS
The following sums are appropriated out of any money in the
Treasury not otherwise appropriated, to provide additional
emergency supplemental appropriations for the Legislative
Branch for the fiscal year ending September 30, 2000, and for
other purposes, namely:
Capitol Police Board
security enhancements
For an additional amount for the Capitol Police Board for
costs associated with security enhancements, under the terms
and conditions of chapter 5 of title II of division B of the
Omnibus Consolidated and Emergency Supplemental Appropriations
Act, 1999 (Public Law 105-277), $2,102,000, to remain available
until expended, of which--
(1) $228,000 shall be for the acquisition and
installation of card readers for 4 additional access
points which are not currently funded under the
implementation of the security enhancement plan; and
(2) $1,874,000 shall be for security enhancements
to the buildings and grounds of the Library of
Congress:
Provided, That the entire amount is designated by Congress as
an emergency requirement pursuant to section 251(b)(2)(A) of
the Balanced Budget and Emergency Deficit Control Act of 1985,
as amended: Provided further, That the entire amount shall be
available only to the extent an official budget request for a
specific dollar amount that includes designation of the entire
amount of the request as an emergency requirement as defined in
the Balanced Budget and Emergency Deficit Control Act of 1985,
as amended, is transmitted by the President to the Congress.
ARCHITECT OF THE CAPITOL
Capitol Buildings and Grounds
house office buildings
For an additional amount for necessary expenses for urgent
repairs to the underground garage in the Cannon House Office
Building, $9,000,000, to remain available until expended:
Provided, That the entire amount is designated by the Congress
as an emergency requirement pursuant to section 251(b)(2)(A) of
the Balanced Budget and Emergency Deficit Control Act of 1985,
as amended: Provided further, That the entire amount shall be
available only to the extent an official budget request for a
specific dollar amount that includes designation of the entire
amount of the request as an emergency requirement as defined in
the Balanced Budget and Emergency Deficit Control Act of 1985,
as amended, is transmitted by the President to the Congress.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Federal Housing Administration
fha--general and special risk program account
For an additional amount for FHA--General and special risk
program account for the cost of guaranteed loans, as authorized
by sections 238 and 519 of the National Housing Act (12 U.S.C.
1715z-3 and 1735c), including the cost of loan modifications
(as that term is defined in section 502 of the Congressional
Budget Act of 1974, as amended), $40,000,000, to remain
available until expended: Provided, That the entire amount
shall be available only to the extent an official budget
request, that includes designation of the entire amount of the
request as an emergency requirement as defined in the Balanced
Budget and Emergency Deficit Control Act of 1985, as amended,
is transmitted by the President to the Congress: Provided
further, That the entire amount is designated by the Congress
as an emergency requirement pursuant to section 251(b)(2)(A) of
the Balanced Budget and Emergency Deficit Control Act: Provided
further, That the funding under this heading shall only be made
available upon the submission of a certification by the
Secretary of Housing and Urban Development to the Committees on
Appropriations that all funds committed, expended, or obligated
under this heading in the Departments of Veterans Affairs and
Housing and Urban Development, Independent Agencies
Appropriations Act, 2000 were committed, expended or obligated
in compliance with the Antideficiency Act (31 U.S.C. 1341).
Sec. 401. Appropriations made by this title are available
immediately upon enactment of this Act.
This Act may be cited as the ``Legislative Branch
Appropriations Act, 2001''.
LEGISLATIVE BRANCH APPROPRIATIONS
Following is explanatory language on H.R. 5657, as
introduced on December 14, 2000.
The conferees on H.R. 4577 agree with the matter included
in H.R. 5657 and enacted in this conference report by reference
and the following description. This bill was developed through
negotiations by conferees on the differences in H.R. 4516.
References in the following description to the ``conference
agreement'' mean the matter included in the introduced bill
enacted by this conference report. References to the House bill
mean the House passed version of H.R. 4516. References to the
Senate bill or Senate amendment mean the Senate reported
version of H.R. 4516.
legislative branch appropriations
Many items in both House and Senate Legislative Branch
Appropriations bills are identical and are included in the
conference agreement without change. The conferees have
endorsed statements or policy contained in the House and Senate
reports accompanying the appropriations bills, unless amended
or restated herein. The conferees have agreed to drop without
prejudice the direction in the House report under the heading,
Information Security, subsumed under ``LEGISLATIVE BRANCH WIDE
MATTERS''. With respect to those items in the conference
agreement that differ between House and Senate bills, the
conferees have agreed to the following with the appropriate
section numbers, punctuation, and other technical corrections:
TITLE I--CONGRESSIONAL OPERATIONS
Senate
Appropriates $506,797,300 for Senate operations, and
includes, at the request of the managers on the part of the
Senate, an amendment adding $250,000, an amendment containing
the traditional death gratuity upon the death of a Senator, and
an amendment to Section 8. Inasmuch as this item relates solely
to the Senate, and in accord with long practice under which
each body determines its own housekeeping requirements and the
other concurs without intervention, the managers on the part of
the House, at the request of the managers on the part of the
Senate, have receded to the Senate.
House of Representatives
At the request of the managers on the part of the House,
an enrollment error in the House bill has been corrected and an
administrative provision has been added to provide funds for a
special education need. Inasmuch as this item relates solely to
the House, and in accord with long practice under which each
body determines its own housekeeping requirements and the other
concurs without intervention, the managers on the part of the
Senate, at the request of the managers on the part of the
House, have receded to the House.
Joint Items
Joint Committee on Inaugural Ceremonies of 2001
salaries and expenses
Appropriates $1,000,000 for the Joint Committee on
Inaugural Ceremonies of 2001 as proposed by the Senate,
amending two dates.
Administrative Provision
The conferees have amended the administrative provision
proposed by the House regarding assistance for the Capitol
Police during the Inauguration in January 2001 and the 2001
joint session of Congress to receive the State of the Union
message.
Joint Economic Committee
Appropriates $3,315,000 for the Joint Economic Committee
as proposed by the Senate instead of $3,072,000 as proposed by
the House.
Joint Committee on Taxation
Appropriates $6,430,000 for the Joint Committee on
Taxation instead of $6,174,000 as proposed by the House and
$6,686,000 as proposed by the Senate. The conferees believe
that this level of funding is sufficient for the Joint
Committee on Taxation to complete its report on the overall
state of the Federal tax system.
CAPITOL POLICE BOARD
Capitol Police
salaries
Appropriates $97,142,000 for salaries of officers,
members, and employees of the Capitol Police instead of
$92,769,000 as proposed by the House and $102,700,000 as
proposed by the Senate, of which $47,053,000 is provided to the
Sergeant at Arms of the House of Representatives and
$50,089,000 is provided to the Sergeant at Arms and Doorkeeper
of the Senate. Of the amount provided, $4,660,000 is for
overtime.
The conferees have agreed this will fund 1,481 FTE's, the
level proposed by the Senate. The Chief of Police is directed
to secure the approval of the House and Senate Appropriations
Committees before filling positions above the level of 1,402
FTE's. The conferees intend that sufficient resources be
allocated to implement the ``two officers per door'' policy.
The Police are directed to study the posting requirements of
all posts and report to the House and Senate Appropriations
Committees. Until such a study is presented, the police are
authorized an FTE level of 1402.
general expenses
Appropriates $6,772,000 for general expenses of the
Capitol Police instead of $6,549,000 as proposed by the House
and $6,884,000 as proposed by the Senate. The funds provide
$103,000 for motorcycle replacement, and the conferees direct
that the Capitol Police continue the program begun in FY 2000
to utilize American-made motorcycles, targeting the funds made
available in this agreement towards smaller motorcycles. In
addition, the conferees have not included reimbursement for
telecommunications costs ($235,000) and direct that these
savings be applied to other programs. Items for installation
and maintenance of physical security and information security
measures shall not be less than the FY 2000 funded level.
Administrative Provisions
The conferees have included two administrative provisions
proposed by the House relating to certifying officers and a
chief administrative officer. The conferees have also added a
provision adjusting the salary of the chief of the Capitol
police.
Capitol Guide Service and Special Services Office
Appropriates $2,371,000 for the Capitol Guide Service and
Special Services Office as proposed by the Senate instead of
$2,201,000 as proposed by the House.
Statements of Appropriations
Appropriates $30,000 for statements of appropriations as
proposed by the Senate instead of $29,000 as proposed by the
House and makes technical changes.
OFFICE OF COMPLIANCE
Appropriates $1,820,000 for the Office of Compliance
instead of $1,816,000 as proposed by the House and $2,066,000
as proposed by the Senate. The conferees note that Office of
Compliance telephones frequently are not answered during normal
business hours. As an agency providing service to employees and
agencies of the Legislative branch, the Executive Director
should ensure that calls to the Office of Compliance are
answered during normal business hours. In addition, the
conferees believe the Executive Director should examine the use
of contract couriers to make deliveries to Congressional
offices and should reduce costs for such deliveries by use of
other means when appropriate.
CONGRESSIONAL BUDGET OFFICE
Salaries and Expenses
Establishes the limitation on funds for representation
and reception expenses at $3,000 as proposed by the House
instead of $2,500 as proposed by the Senate and appropriates
$28,493,000 for salaries and expenses of the Congressional
Budget Office instead of $27,403,000 as proposed by the House
and $27,113,000 as proposed by the Senate.
The conferees have included an administrative provision,
as proposed by the Senate, authorizing the Congressional Budget
Office to enter into multiple year contracts to the same extent
as executive agencies.
ARCHITECT OF THE CAPITOL
Capitol Buildings and Grounds
capitol buildings
salaries and expenses
Appropriates $43,689,000 for salaries and expenses,
Capitol buildings, Architect of the Capitol, instead of
$44,234,000 as proposed by the House and $44,191,000 as
proposed by the Senate. Of this amount, $3,843,000 shall remain
available until expended instead of $4,280,000 as proposed by
the House and $4,255,000 as proposed by the Senate. With
respect to object class and project differences between the
House and Senate bills, the conferees have agreed to the
following:
Operating Budget:....................................... $39,346,000
Capitol Projects:
1. Update electrical system drawings on CAD....... 70,000
2. CAD Mechanical database........................ 70,000
3. Conservation of wall paintings................. 200,000
4. Study, confined spaces, Capitol Complex........ 0
5. Replacement on Minton tile..................... 100,000
6. Provide infrastructure for security
installations..................................... 400,000
7. Computer, telecommunications and electrical
support........................................... 300,000
8. Security project support for AOC............... 0
9. Roof fall protection........................... 555,000
10. Life safety support services................... 0
11. Safety and environmental program and SOP
development....................................... 0
12. Wayfinding and ADA compliant signage........... 50,000
13. Computer aided facility management............ 263,000
The conference agreement includes a provision authorizing
the Architect of the Capitol to hire a project manager for the
construction of the Capitol Visitors Center and establishing a
ceiling on the level of pay for this position. The conferees
direct the Architect to fill this position from among persons
recruited from outside the agency. The language authorizing the
position and funding for same will require inclusion in annual
appropriations bills and will be withdrawn upon completion of
the project.
The conferees have agreed to modify the Senate report
language directing the Architect to create and fill a position
for employee advocate. The conferees direct that the Architect
fill the position of Employee Advocate on a one-year, temporary
basis, using existing resources, at a level appropriate to the
task. In the submission of the FY 2002 budget request, the
Architect is directed to report on measures taken to fulfill
directives in the Senate report in lieu of the quarterly
reports outlined in the Senate report regarding this position.
The House and Senate Committees on Appropriations will review
the results of this temporary measure before considering a
permanent solution.
The conferees are aware that the Architect of the Capitol
employs a significant number of temporary workers (excluding
intermittent workers) who do not receive the usual benefits
available to permanent federal workers. The Architect is
directed to provide a report within 90 days to the Senate
Committees on Appropriations and Rules and Administration, and
to the House Committees on Appropriations, Transportation and
Infrastructure, and House Administration, both majority and
minority, detailing its use of temporary workers, the terms and
conditions thereof, and the reasons therefor; the total number
of such workers employed during each of the last five fiscal
years; and a list and explanation of the benefits, if any, such
workers receive by reason of their AOC employment. The report
shall make recommendations for how to provide such workers
access to federal benefits and a list of any alternatives that
may exist to the use of temporary workers.
The conferees are concerned about a class-action suit
against the Architect (Harris et al. v. Architect of the
Capitol). The Architect is urged to make every effort to settle
this lawsuit as expeditiously as possible, and to report to the
House and Senate Committees on Appropriations within 45 days on
the status of the case.
capitol grounds
Appropriates $5,362,000 to the Architect of the Capitol
for care and improvement of grounds surrounding the Capitol,
House and Senate office buildings, and the Capitol power plant
instead of $5,217,000 as proposed by the House and $5,512,000
as proposed by the Senate. Of this amount, $125,000 shall
remain available until expended instead of $25,000 as proposed
by the House and $225,000 as proposed by the Senate. With
respect to object class and project differences between the
House and Senate bills, the conferees have agreed to the
following:
Operating Budget........................................ $5,127,000
Capitol Projects:
1. CAD database development--site utilities........ 110,000
2. Wayfinding and ADA compliant signage............ 100,000
senate office buildings
Appropriates $63,974,000 to the Architect of the Capitol
as proposed by the Senate, of which $21,669,000 shall remain
available until expended, for the operations of the Senate
office buildings. Inasmuch as this item relates solely to the
Senate, and in accord with long practice under which each body
determines its own housekeeping requirements and the other
concurs without intervention, the managers on the part of the
House, at the request of the managers on the part of the
Senate, have receded to the Senate.
house office buildings
Appropriates $32,750,000 to the Architect of the Capitol
as proposed by the House, of which $123,000 shall remain
available until expended, for the operations of the House
office buildings. Inasmuch as this item relates solely to the
House, and in accord with long practice under which each body
determines its own housekeeping requirements and the other
concurs without intervention, the managers on the part of the
Senate, at the request of the managers on the part of the
House, have receded to the House.
capitol power plant
In addition to the $4,400,000 available from receipts,
appropriates $39,415,000 to the Architect of the Capitol for
Capitol power plant operations instead of $39,151,000 as
proposed by the House and $39,569,000 as proposed by the
Senate. Of this amount, $523,000 shall remain available until
expended as proposed by the Senate instead of $200,000 as
proposed by the House. With respect to object class and project
differences between the House and Senate bills, the conferees
have agreed to the following:
Operating Budget:
1. Personnel compensation.......................... 4,467,000
2. Other expenses.................................. 34,110,000
Capital Projects:
1. Study, heat balance/efficiency improvements..... 0
2. Update CAD drawings............................. 65,000
3. Roof fall protection............................ 323,000
LIBRARY OF CONGRESS
Congressional Research Service
salaries and expenses
Appropriates $73,592,000 for salaries and expenses,
Congressional Research Service, Library of Congress instead of
$73,810,000 as proposed by the House and $73,374,000 as
proposed by the Senate. In keeping with both the complete
research and maximum practicable administrative independence of
the Congressional Research Service, it is the conferees' intent
that the Director of the Congressional Research Service shall
be obligated to bring to the attention of the appropriate House
and Senate Committees issues which directly impact the
Congressional Research Service and its ability to serve the
needs of Congress. The budgetary needs of CRS that may not be
adequately addressed in the annual budget submission should be
raised with the Appropriations Committees.
GOVERNMENT PRINTING OFFICE
Congressional Printing and Binding
Appropriates $71,462,000 for Congressional printing and
binding instead of $69,626,000 as proposed by the House and
$73,297,000 as proposed by the Senate. The conference agreement
includes a heading and provision for transfer of balances for
preceding fiscal years to the Government Printing Office
revolving fund as proposed by the House and language proposed
by the Senate to provide for printing and binding for the
Architect of the Capitol and for preparing the semimonthly and
session indexes for the Congressional Record.
Rather than limiting funding for the Congressional Record
Index and indexers to close out activities, as directed in the
House report, the conferees agree that this activity should
continue and that improvements in work processes should be
pursued by taking advantage of the latest available technology.
These activities and initiatives should be more closely
integrated and coordinated with related GPO functions and
should be pursued under the direction of the Public Printer or
appropriate officials designated by the Public Printer.
Administrative Provision
The conference agreement amends an administrative
provision proposed by the House regarding a study of
Congressional printing needs and authorization of
appropriations beginning in fiscal year 2003 to limit its
application to the Clerk of the House and the printing needs of
the House of Representatives.
TITLE II--OTHER AGENCIES
BOTANIC GARDEN
Salaries and Expenses
Appropriates $3,328,000 for salaries and expenses,
Botanic Garden instead of $3,216,000 as proposed by the House
and $3,653,000 as proposed by the Senate of which $25,000 shall
remain available until expended instead of $150,000 as proposed
by the Senate. With respect to object class and project
differences between the House and Senate bills, the conferees
have agreed to the following:
Operating Budget........................................ $3,303,000
Capitol Projects:
1. Replace equipment at growing facilities......... 0
2. Wayfinding signage.............................. 25,000
LIBRARY OF CONGRESS
Salaries and Expenses
Provides $282,838,000 for salaries and expenses, Library
of Congress instead of $269,864,000 as proposed by the House
and $267,330,000 as proposed by the Senate. Of this amount,
$6,850,000 is made available from receipts collected by the
Library of Congress, and $10,459,575 is to remain available
until expended for acquisition of library materials as proposed
by the House instead of $10,398,600 as proposed by the Senate.
With respect to differences between the House and Senate bills,
the conferees have agreed to the following:
1. Mandatories........................................ $8,459,000
2. Price level........................................ -1,920,000
3. Russian Leadership Program......................... 10,000,000
4. Hands Across America............................... 5,957,800
5. Arrearage reduction................................ 500,000
6. Mass deacidification............................... 1,216,000
7. National Film Preservation Board................... 250,000
8. Digitization pilot with West Point................. 404,000
9. Digitization non-personal costs $.................. 7,590,000
10. Ft. Meade Storage: One-time costs.................. -406,000
11. Ft. Meade Storage: Open module one................. 618,000
12. Automation: National Digital Library servers and
storage............................................. 300,000
13. Security Office.................................... 2,342,000
14. High-speed transmission line....................... 4,300,000
The conference agreement includes funds for four
programs, to remain available until expended. One provision,
for $5,957,800, is for teaching educators how to incorporate
the Library's digital collection into school curricula. A
second provision provides $404,000 for a digitization pilot
project with the Military Academy at West Point. A third
provision provides $10,000,000 to continue the Russian
Leadership Program for FY2001. A fourth provision provides
$4,300,000 to the Library of Congress to develop high speed
data transmission between the Library of Congress and
educational facilities, libraries, or networks serving the
National Digital Library pilot program. The Library is directed
to investigate the most cost effective method of providing this
capability and take the necessary steps to develop the
capability within the resources available. Any remaining
balance not required for the development of the high speed data
transmission is available for support of the Library's digital
futures initiative.
The conferees agree with language in the House report
directing the Library to employ students at the Ft. Meade
remote storage facility and with language in the Senate report
directing the Library to devote all available resources to
elimination of cataloging arrearage.
The conferees are aware that a task force has been
established at the Library of Congress to explore the
feasibility and desirability of instituting a telecommuting
program for the Library. The conferees encourage the Librarian
to consider a telecommuting program for the Library (including
the Congressional Research Service), and to include a
description of the program with his next budget submission.
Copyright Office
salaries and expenses
Provides $38,523,000, including $29,283,000 made
available from receipts, for salaries and expenses, Copyright
Office instead of $38,771,000, including $31,783,000 from
receipts, as proposed by the House and $38,332,000, including
$26,783,000 from receipts, as proposed by the Senate. With
respect to differences between the House and Senate bills, the
conferees have agreed to the following:
Salaries................................................ $31,318,000
Expenses................................................ 7,205,000
Books for the Blind and Physically Handicapped
salaries and expenses
Appropriates $48,609,000 for salaries and expenses, books
for the blind and physically handicapped instead of $48,507,000
as proposed by the House and $48,711,000 as proposed by the
Senate. Of this amount, $14,154,000 shall remain available
until expended as proposed by the Senate instead of $14,135,000
as proposed by the House.
Furniture and Furnishings
Appropriates $4,892,000 for furniture and furnishings at
the Library of Congress as proposed by the Senate instead of
$5,394,000 as proposed by the House.
Administrative Provisions
Various technical corrections and section number changes
have been made. In Section 201, the conferees have agreed to an
overall limitation of $199,630 on funds available for
attendance at meetings as proposed by the House and a
limitation of $59,300 on CRS attendance at meetings as proposed
by the House. The conference agreement includes Section 202 as
proposed by the House. The conferees have modified the scope of
accounts available for transfer authority to include transfers
only from the furniture and furnishings account and not to it.
The conference agreement does not include the separation
incentives proposed by the House. The conferees have authorized
use of appropriated funds to pay the employer share of benefit
costs for employees of the Library of Congress child care
center.
ARCHITECT OF THE CAPITOL
Library Buildings and Grounds
structural and mechanical care
Appropriates $15,970,000 for structural and mechanical
care, Library buildings and grounds, Architect of the Capitol
instead of $15,837,000 as proposed by the House and $16,347,000
as proposed by the Senate. With respect to object class and
project differences between the House and Senate bills, the
conferees have agreed to the following:
Operating Budget:
1. Personnel compensation and benefits............. $7,959,000
2. Annual expenses................................. 1,966,000
Capitol Projects:
3. Preservations environmental monitoring.......... 0
4. Replace HVAC variable speed drive motor......... 90,000
5. Room and partition modifications................ 165,000
6. Replace partition supports...................... 200,000
7. Lightning protection, Madison building.......... 190,000
GOVERNMENT PRINTING OFFICE
Office of Superintendent of Documents
salaries and expenses
Appropriates $27,954,000 for salaries and expenses,
Office of the Superintendent of Documents instead of
$25,652,000 as proposed by the House and $30,255,000 as
proposed by the Senate. The conferees have retained the heading
``Transfer of Funds'' as proposed by the House and
``distribution'' to replace the wording, ``on-line access'',
within the appropriating paragraph as proposed by the Senate.
The conferees have included the Senate language for the
appropriating provision on the availability of $2,000,000 from
the appropriation and the appropriation provision authorizing
transfer of funds as proposed by the House.
The conferees recognize that the funding level provided
may require adjustments in historically applicable program
services and agree that no employee layoffs will be required.
Emphasis should be on streamlining the distribution of
traditional paper copies of publications which may include
providing online access and less expensive electronic formats.
The conferees agree to the transfer of unexpended funds
proposed by the House, which provides additional flexibility in
meeting program requirements.
The conferees have agreed to modify the language in the
House report directing the Congressional Research Service to
conduct a study and direct that the General Accounting Office
shall conduct a comprehensive study on the impact of providing
documents to the public solely in electronic format. The study
shall include: (1) a current inventory of publications and
documents which are provided to the public, (2) the frequency
with which each type of publication or document is requested
for deposit at non-regional depository libraries, and (3) an
assessment of the feasibility of transfer of the depository
library program to the Library of Congress that: Identifies how
such a transfer might be accomplished; Identifies when such a
transfer might optimally occur; Examines the functions,
services, and programs of the Superintendent of Documents;
Examines and identifies administrative and infrastructure
support that is provided to the Superintendent by the
Government Printing Office, with a view to the implications for
such a transfer; Examines and identifies the costs, for both
the Government Printing Office and the Library of Congress, of
such a transfer; Identifies measures that are necessary to
ensure the success of such a transfer.
The study shall be submitted to the Committee on House
Administration and the Senate Committee on Rules and
Administration by March 30, 2001.
Administrative Provision
The conferees have not included a provision proposed by
the Senate amending 44 U.S.C. 1708.
GENERAL ACCOUNTING OFFICE
Salaries and Expenses
Appropriates $384,867,000 for salaries and expenses,
General Accounting Office as proposed by the Senate instead of
$368,896,000 as proposed by the House. Within the appropriating
paragraph, the conferees have set the limitation on
representation expenses at $10,000 as proposed by the House,
instead of $7,000 as proposed by the Senate and made technical
corrections to two other matters.
The General Accounting Office shall undertake a study of
the effects on air pollution caused by all polluting sources,
including automobiles and the electric power generation
emissions of the Tennessee Valley Authority on the Great Smoky
Mountains National Park, the Blue Ridge Parkway and the Pisgah,
Nantahla, and Cherokee National Forests. This study will also
include the amount of carbon emissions avoided by the use of
non-emitting electricity sources such as nuclear power within
the same region. The GAO shall report to the Committees on
Appropriations no later than January 31, 2001.
Administrative Provisions
The conferees have not included several administrative
provisions proposed by the Senate.
TITLE III--GENERAL PROVISIONS
In Title III, General Provisions, section numbers have
been changed to conform to the conference agreement and
technical corrections have been made. The conferees have
included a liquidated damages provision proposed by the House.
The conferees have included provisions proposed by the Senate
changing a date and extending the Russian Leadership Program.
The conferees have not included a proposed merger of various
law enforcement activities and have amended language in the
Senate bill regarding the placement of statues in Statuary
Hall. The conferees have adjusted the limitation on the
National Garden and have agreed to establish a Center for
Russian Leadership Development as proposed by the Senate. A
Sense of the Senate provision and a limitation on the use of
pesticides have not been included. There is a provision
regarding an assessment by the General Accounting Office of a
report referred to in the National Defense Authorization Act
for Fiscal Year 1998.
TITLE IV--FISCAL YEAR 2000 EMERGENCY SUPPLEMENTAL
The conferees have included several Fiscal Year 2000
supplemental appropriation items that require urgent attention
and are considered emergency situations.
LEGISLATIVE BRANCH
JOINT ITEMS
Capitol Police Board
security enhancements
The conference agreement provides an additional
$2,102,000 for Fiscal Year 2000 to the Capitol Police Board for
security enhancements. Of this amount, $228,000 are for
acquisition and installation of card readers for four
additional Capitol buildings access points not currently funded
in the security enhancements plan. In addition, $1,874,000 is
provided for work at the Library of Congress to complete the
closed circuit television ($1,390,000) and access control
($484,000) improvement tasks. These funds are designated as an
emergency requirement.
ARCHITECT OF THE CAPITOL
Capitol Buildings And Grounds
house office buildings
The conference agreement appropriates $9,000,000 for
Fiscal Year 2000 to the Architect of the Capitol for urgent
repairs to the underground garage in the Cannon House Office
Building. These funds are designated as an emergency
requirement.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
FEDERAL HOUSING ADMINISTRATION
FHA--General and Special Risk Program Account
At the request of the House and Senate subcommittees on
VA, HUD and Independent Agencies Appropriations, the conferees
have agreed to include a provision for the Department of
Housing and Urban Development (HUD) that provides, on an
emergency basis, $40,000,000 in credit subsidy for the FHA
General and Special Risk Program Account. Without these
additional funds, the Title I home improvement program, the
condominium loan program, the FHA reverse mortgage program for
senior citizens, and various multifamily housing insurance
programs would have to be suspended. The additional
appropriation would have been unnecessary if HUD had adhered to
assumptions made by the Office of Management and Budget (OMB)
in determining credit subsidy rates when the President's budget
was submitted to Congress, a violation of budget conventions.
In the future, HUD should refrain from similar actions.
CONFERENCE TOTAL--WITH COMPARISONS
The total new budget (obligational) authority for the
fiscal year 2001 recommended by the Committee of Conference,
with comparisons to the fiscal year 2000 amount, the 2001
budget estimates, and the House and Senate bills for 2001
follow:
[In thousands of dollars]
New budget (obligational) authority, fiscal year 2000.........$2,475,080
Budget estimates of new (obligational) authority, fiscal year
2001...................................................... 2,725,604
House bill, fiscal year 2001.................................. 1,913,691
Senate bill, fiscal year 2001................................. 2,523,378
Conference agreement, fiscal year 2001........................ 2,526,863
Conference agreement compared with:
New budget (obligational) authority, fiscal year 2000..... +51,783
Budget estimates of new (obligational) authority, fiscal
year 2001............................................... -198,741
House bill, fiscal year 2001.............................. +613,172
Senate bill, fiscal year 2001............................. +3,485
Title IV--FY 2000 Emergency Supplemental...................... 51,102
TREASURY DEPARTMENT, THE UNITED STATES POSTAL SERVICE, THE EXECUTIVE
OFFICE OF THE PRESIDENT, AND CERTAIN INDEPENDENT AGENCIES
APPROPRIATIONS
The conference agreement would enact the provisions of
H.R. 5658 as introduced on December 14, 2000. The text of that
bill follows:
A BILL Making appropriations for the Treasury Department, the United
States Postal Service, the Executive Office of the President, and
certain Independent Agencies for the fiscal year ending September 30,
2001, and for other purposes
Be it enacted by the Senate and House of Representatives
of the United States of America in Congress assembled, That the
following sums are appropriated, out of any money in the
Treasury not otherwise appropriated, for the Treasury
Department, the United States Postal Service, the Executive
Office of the President, and certain Independent Agencies for
the fiscal year ending September 30, 2001, and for other
purposes, namely:
TITLE I--DEPARTMENT OF THE TREASURY
Departmental Offices
salaries and expenses
For necessary expenses of the Departmental Offices
including operation and maintenance of the Treasury Building
and Annex; hire of passenger motor vehicles; maintenance,
repairs, and improvements of, and purchase of commercial
insurance policies for, real properties leased or owned
overseas, when necessary for the performance of official
business; not to exceed $2,900,000 for official travel
expenses; not to exceed $3,813,000, to remain available until
expended for information technology modernization requirements;
not to exceed $150,000 for official reception and
representation expenses; not to exceed $258,000 for unforeseen
emergencies of a confidential nature, to be allocated and
expended under the direction of the Secretary of the Treasury
and to be accounted for solely on his certificate,
$156,315,000: Provided, That the Office of Foreign Assets
Control shall be funded at no less than $11,439,000: Provided
further, That of these amounts $2,900,000 is available for
grants to State and local law enforcement groups to help fight
money laundering.
Department-Wide Systems and Capital Investments Programs
(including transfer of funds)
For development and acquisition of automatic data
processing equipment, software, and services for the Department
of the Treasury, $47,287,000, to remain available until
expended: Provided, That these funds shall be transferred to
accounts and in amounts as necessary to satisfy the
requirements of the Department's offices, bureaus, and other
organizations: Provided further, That this transfer authority
shall be in addition to any other transfer authority provided
in this Act: Provided further, That none of the funds
appropriated shall be used to support or supplement the
Internal Revenue Service appropriations for Information
Systems.
Office of Inspector General
salaries and expenses
For necessary expenses of the Office of Inspector General
in carrying out the provisions of the Inspector General Act of
1978, as amended, not to exceed $2,000,000 for official travel
expenses, including hire of passenger motor vehicles; and not
to exceed $100,000 for unforeseen emergencies of a confidential
nature, to be allocated and expended under the direction of the
Inspector General of the Treasury, $32,899,000.
Treasury Inspector General for Tax Administration
salaries and expenses
For necessary expenses of the Treasury Inspector General
for Tax Administration in carrying out the Inspector General
Act of 1978, as amended, including purchase (not to exceed 150
for replacement only for police-type use) and hire of passenger
motor vehicles (31 U.S.C. 1343(b)); services authorized by 5
U.S.C. 3109, at such rates as may be determined by the
Inspector General for Tax Administration; not to exceed
$6,000,000 for official travel expenses; and not to exceed
$500,000 for unforeseen emergencies of a confidential nature,
to be allocated and expended under the direction of the
Inspector General for Tax Administration, $118,427,000.
Treasury Building and Annex Repair and Restoration
For the repair, alteration, and improvement of the Treasury
Building and Annex, $31,000,000, to remain available until
expended.
Expanded Access to Financial Services
(including transfer of funds)
To develop and implement programs to expand access to
financial services for low- and moderate-income individuals,
$2,000,000, to remain available until expended: Provided, That
of these funds, such sums as may be necessary may be
transferred to accounts of the Department's offices, bureaus,
and other organizations: Provided further, That this transfer
authority shall be in addition to any other transfer authority
provided in this Act.
Financial Crimes Enforcement Network
salaries and expenses
For necessary expenses of the Financial Crimes Enforcement
Network, including hire of passenger motor vehicles; travel
expenses of non-Federal law enforcement personnel to attend
meetings concerned with financial intelligence activities, law
enforcement, and financial regulation; not to exceed $14,000
for official reception and representation expenses; and for
assistance to Federal law enforcement agencies, with or without
reimbursement, $37,576,000, of which not to exceed $2,800,000
shall remain available until September 30, 2003; and of which
$2,275,000 shall remain available until September 30, 2002:
Provided, That funds appropriated in this account may be used
to procure personal services contracts.
Counterterrorism Fund
For necessary expenses, as determined by the Secretary,
$55,000,000, to remain available until expended, to reimburse
any Department of the Treasury organization for the costs of
providing support to counter, investigate, or prosecute
terrorism, including payment of rewards in connection with
these activities: Provided, That the entire amount is
designated by the Congress as an emergency requirement pursuant
to section 251(b)(2)(A) of the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended: Provided further, That
the entire amount shall be available only to the extent that an
official budget request for a specific dollar amount that
includes designation of the entire amount of the request as an
emergency requirement as defined in such Act is transmitted by
the President to the Congress.
Federal Law Enforcement Training Center
salaries and expenses
For necessary expenses of the Federal Law Enforcement
Training Center, as a bureau of the Department of the Treasury,
including materials and support costs of Federal law
enforcement basic training; purchase (not to exceed 52 for
police-type use, without regard to the general purchase price
limitation) and hire of passenger motor vehicles; for expenses
for student athletic and related activities; uniforms without
regard to the general purchase price limitation for the current
fiscal year; the conducting of and participating in firearms
matches and presentation of awards; for public awareness and
enhancing community support of law enforcement training; not to
exceed $11,500 for official reception and representation
expenses; room and board for student interns; and services as
authorized by 5 U.S.C. 3109, $94,483,000, of which up to
$17,043,000 for materials and support costs of Federal law
enforcement basic training shall remain available until
September 30, 2003: Provided, That the Center is authorized to
accept and use gifts of property, both real and personal, and
to accept services, for authorized purposes, including funding
of a gift of intrinsic value which shall be awarded annually by
the Director of the Center to the outstanding student who
graduated from a basic training program at the Center during
the previous fiscal year, which shall be funded only by gifts
received through the Center's gift authority: Provided further,
That notwithstanding any other provision of law, students
attending training at any Federal Law Enforcement Training
Center site shall reside in on-Center or Center-provided
housing, insofar as available and in accordance with Center
policy: Provided further, That funds appropriated in this
account shall be available, at the discretion of the Director,
for the following: training United States Postal Service law
enforcement personnel and Postal police officers; State and
local government law enforcement training on a space-available
basis; training of foreign law enforcement officials on a
space-available basis with reimbursement of actual costs to
this appropriation, except that reimbursement may be waived by
the Secretary for law enforcement training activities in
foreign countries undertaken pursuant to section 801 of the
Antiterrorism and Effective Death Penalty Act of 1996, Public
Law 104-32; training of private sector security officials on a
space-available basis with reimbursement of actual costs to
this appropriation; and travel expenses of non-Federal
personnel to attend course development meetings and training
sponsored by the Center: Provided further, That the Center is
authorized to obligate funds in anticipation of reimbursements
from agencies receiving training sponsored by the Federal Law
Enforcement Training Center, except that total obligations at
the end of the fiscal year shall not exceed total budgetary
resources available at the end of the fiscal year: Provided
further, That the Federal Law Enforcement Training Center is
authorized to provide training for the Gang Resistance
Education and Training program to Federal and non-Federal
personnel at any facility in partnership with the Bureau of
Alcohol, Tobacco and Firearms: Provided further, That the
Federal Law Enforcement Training Center is authorized to
provide short-term medical services for students undergoing
training at the Center.
acquisition, construction, improvements, and related expenses
For expansion of the Federal Law Enforcement Training
Center, for acquisition of necessary additional real property
and facilities, and for ongoing maintenance, facility
improvements, and related expenses, $29,205,000, to remain
available until expended.
Interagency Law Enforcement
interagency crime and drug enforcement
For expenses necessary to conduct investigations and
convict offenders involved in organized crime drug trafficking,
including cooperative efforts with State and local law
enforcement, as it relates to the Treasury Department law
enforcement violations such as money laundering, violent crime,
and smuggling, $103,476,000, of which $7,827,000 shall remain
available until expended.
Financial Management Service
salaries and expenses
For necessary expenses of the Financial Management Service,
$206,851,000, of which not to exceed $10,635,000 shall remain
available until September 30, 2003, for information systems
modernization initiatives; and of which not to exceed $2,500
shall be available for official reception and representation
expenses.
Bureau of Alcohol, Tobacco and Firearms
salaries and expenses
For necessary expenses of the Bureau of Alcohol, Tobacco
and Firearms, including purchase of not to exceed 812 vehicles
for police-type use, of which 650 shall be for replacement
only, and hire of passenger motor vehicles; hire of aircraft;
services of expert witnesses at such rates as may be determined
by the Director; for payment of per diem and/or subsistence
allowances to employees where a major investigative assignment
requires an employee to work 16 hours or more per day or to
remain overnight at his or her post of duty; not to exceed
$20,000 for official reception and representation expenses; for
training of State and local law enforcement agencies with or
without reimbursement, including training in connection with
the training and acquisition of canines for explosives and fire
accelerants detection; not to exceed $50,000 for cooperative
research and development programs for Laboratory Services and
Fire Research Center activities; and provision of laboratory
assistance to State and local agencies, with or without
reimbursement, $768,695,000, of which not to exceed $1,000,000
shall be available for the payment of attorneys' fees as
provided by 18 U.S.C. 924(d)(2); of which up to $2,000,000
shall be available for the equipping of any vessel, vehicle,
equipment, or aircraft available for official use by a State or
local law enforcement agency if the conveyance will be used in
joint law enforcement operations with the Bureau of Alcohol,
Tobacco and Firearms and for the payment of overtime salaries
including Social Security and Medicare, travel, fuel, training,
equipment, supplies, and other similar costs of State and local
law enforcement personnel, including sworn officers and support
personnel, that are incurred in joint operations with the
Bureau of Alcohol, Tobacco and Firearms: Provided, That no
funds made available by this or any other Act may be used to
transfer the functions, missions, or activities of the Bureau
of Alcohol, Tobacco and Firearms to other agencies or
Departments in fiscal year 2001: Provided further, That no
funds appropriated herein shall be available for salaries or
administrative expenses in connection with consolidating or
centralizing, within the Department of the Treasury, the
records, or any portion thereof, of acquisition and disposition
of firearms maintained by Federal firearms licensees: Provided
further, That no funds appropriated herein shall be used to pay
administrative expenses or the compensation of any officer or
employee of the United States to implement an amendment or
amendments to 27 CFR 178.118 or to change the definition of
``Curios or relics'' in 27 CFR 178.11 or remove any item from
ATF Publication 5300.11 as it existed on January 1, 1994:
Provided further, That none of the funds appropriated herein
shall be available to investigate or act upon applications for
relief from Federal firearms disabilities under 18 U.S.C.
925(c): Provided further, That such funds shall be available to
investigate and act upon applications filed by corporations for
relief from Federal firearms disabilities under 18 U.S.C.
925(c): Provided further, That no funds under this Act may be
used to electronically retrieve information gathered pursuant
to 18 U.S.C. 923(g)(4) by name or any personal identification
code.
United States Customs Service
salaries and expenses
For necessary expenses of the United States Customs
Service, including purchase and lease of up to 1,050 motor
vehicles of which 550 are for replacement only and of which
1,030 are for police-type use and commercial operations; hire
of motor vehicles; contracting with individuals for personal
services abroad; not to exceed $40,000 for official reception
and representation expenses; and awards of compensation to
informers, as authorized by any Act enforced by the United
States Customs Service, $1,863,765,000, of which such sums as
become available in the Customs User Fee Account, except sums
subject to section 13031(f)(3) of the Consolidated Omnibus
Budget Reconciliation Act of 1985, as amended (19 U.S.C.
58c(f)(3)), shall be derived from that Account; of the total,
not to exceed $150,000 shall be available for payment for
rental space in connection with preclearance operations; not to
exceed $4,000,000 shall be available until expended for
research; of which not less than $100,000 shall be available to
promote public awareness of the child pornography tipline; of
which not less than $200,000 shall be available for Project
Alert; not to exceed $5,000,000 shall be available until
expended for conducting special operations pursuant to 19
U.S.C. 2081; not to exceed $8,000,000 shall be available until
expended for the procurement of automation infrastructure
items, including hardware, software, and installation; and not
to exceed $5,000,000 shall be available until expended for
repairs to Customs facilities: Provided, That uniforms may be
purchased without regard to the general purchase price
limitation for the current fiscal year: Provided further, That
notwithstanding any other provision of law, the fiscal year
aggregate overtime limitation prescribed in subsection 5(c)(1)
of the Act of February 13, 1911 (19 U.S.C. 261 and 267) shall
be $30,000.
harbor maintenance fee collection
(including transfer of funds)
For administrative expenses related to the collection of
the Harbor Maintenance Fee, pursuant to Public Law 103-182,
$3,000,000, to be derived from the Harbor Maintenance Trust
Fund and to be transferred to and merged with the Customs
``Salaries and Expenses'' account for such purposes.
operation, maintenance and procurement, air and marine interdiction
programs
For expenses, not otherwise provided for, necessary for the
operation and maintenance of marine vessels, aircraft, and
other related equipment of the Air and Marine Programs,
including operational training and mission-related travel, and
rental payments for facilities occupied by the air or marine
interdiction and demand reduction programs, the operations of
which include the following: the interdiction of narcotics and
other goods; the provision of support to Customs and other
Federal, State, and local agencies in the enforcement or
administration of laws enforced by the Customs Service; and, at
the discretion of the Commissioner of Customs, the provision of
assistance to Federal, State, and local agencies in other law
enforcement and emergency humanitarian efforts, $133,228,000,
which shall remain available until expended: Provided, That no
aircraft or other related equipment, with the exception of
aircraft which is one of a kind and has been identified as
excess to Customs requirements and aircraft which has been
damaged beyond repair, shall be transferred to any other
Federal agency, department, or office outside of the Department
of the Treasury, during fiscal year 2001 without the prior
approval of the Committees on Appropriations.
automation modernization
For expenses not otherwise provided for Customs automated
systems, $258,400,000, to remain available until expended, of
which $5,400,000 shall be for the International Trade Data
System, and not less than $130,000,000 shall be for the
development of the Automated Commercial Environment: Provided,
That none of the funds appropriated under this heading may be
obligated for the Automated Commercial Environment until the
United States Customs Service prepares and submits to the
Committees on Appropriations a final plan for expenditure that:
(1) meets the capital planning and investment control review
requirements established by the Office of Management and
Budget, including OMB Circular A-11, part 3; (2) complies with
the United States Customs Service's Enterprise Information
Systems Architecture; (3) complies with the acquisition rules,
requirements, guidelines, and systems acquisition management
practices of the Federal Government; (4) is reviewed and
approved by the Customs Investment Review Board, the Department
of the Treasury, and the Office of Management and Budget; and
(5) is reviewed by the General Accounting Office: Provided
further, That none of the funds appropriated under this heading
may be obligated for the Automated Commercial Environment until
that final expenditure plan has been approved by the Committees
on Appropriations.
Bureau of the Public Debt
administering the public debt
For necessary expenses connected with any public-debt
issues of the United States, $187,301,000, of which not to
exceed $2,500 shall be available for official reception and
representation expenses, and of which not to exceed $2,000,000
shall remain available until expended for systems
modernization: Provided, That the sum appropriated herein from
the General Fund for fiscal year 2001 shall be reduced by not
more than $4,400,000 as definitive security issue fees and
Treasury Direct Investor Account Maintenance fees are
collected, so as to result in a final fiscal year 2001
appropriation from the General Fund estimated at $182,901,000.
In addition, $23,600, to be derived from the Oil Spill
Liability Trust Fund to reimburse the Bureau for administrative
and personnel expenses for financial management of the Fund, as
authorized by section 1012 of Public Law 101-380; and in
addition, to be appropriated from the General Fund, such sums
as may be necessary for administrative expenses in association
with the South Dakota Trust Fund and the Cheyenne River Sioux
Tribe Terrestrial Wildlife Restoration and Lower Brule Sioux
Tribe Terrestrial Restoration Trust Fund, as authorized by
sections 603(f) and 604(f) of Public Law 106-53.
Internal Revenue Service
processing, assistance, and management
For necessary expenses of the Internal Revenue Service for
tax returns processing; revenue accounting; tax law and account
assistance to taxpayers by telephone and correspondence;
providing an independent taxpayer advocate within the Service;
programs to match information returns and tax returns;
management services; rent and utilities; and services as
authorized by 5 U.S.C. 3109, at such rates as may be determined
by the Commissioner, $3,567,001,000, of which up to $3,950,000
shall be for the Tax Counseling for the Elderly Program, and of
which not to exceed $25,000 shall be for official reception and
representation expenses.
tax law enforcement
For necessary expenses of the Internal Revenue Service for
determining and establishing tax liabilities; providing
litigation support; issuing technical rulings; providing
service to tax exempt customers, including employee plans, tax
exempt organizations, and government entities; examining
employee plans and exempt organizations; conducting criminal
investigation and enforcement activities; securing unfiled tax
returns; collecting unpaid accounts; compiling statistics of
income and conducting compliance research; purchase (for
police-type use, not to exceed 850) and hire of passenger motor
vehicles (31 U.S.C. 1343(b)); and services as authorized by 5
U.S.C. 3109, at such rates as may be determined by the
Commissioner, $3,382,402,000, of which not to exceed $1,000,000
shall remain available until September 30, 2003, for research.
earned income tax credit compliance initiative
For funding essential earned income tax credit compliance
and error reduction initiatives pursuant to section 5702 of the
Balanced Budget Act of 1997 (Public Law 105-33), $145,000,000,
of which not to exceed $10,000,000 may be used to reimburse the
Social Security Administration for the costs of implementing
section 1090 of the Taxpayer Relief Act of 1997.
information systems
For necessary expenses of the Internal Revenue Service for
information systems and telecommunications support, including
developmental information systems and operational information
systems; the hire of passenger motor vehicles (31 U.S.C.
1343(b)); and services as authorized by 5 U.S.C. 3109, at such
rates as may be determined by the Commissioner, $1,545,090,000
which shall remain available until September 30, 2002.
administrative provisions--internal revenue service
Sec. 101. Not to exceed 5 percent of any appropriation made
available in this Act to the Internal Revenue Service may be
transferred to any other Internal Revenue Service appropriation
upon the advance approval of the Committees on Appropriations.
Sec. 102. The Internal Revenue Service shall maintain a
training program to ensure that Internal Revenue Service
employees are trained in taxpayers' rights, in dealing
courteously with the taxpayers, and in cross-cultural
relations.
Sec. 103. The Internal Revenue Service shall institute and
enforce policies and procedures that will safeguard the
confidentiality of taxpayer information.
Sec. 104. Funds made available by this or any other Act to
the Internal Revenue Service shall be available for improved
facilities and increased manpower to provide sufficient and
effective 1-800 help line service for taxpayers. The
Commissioner shall continue to make the improvement of the
Internal Revenue Service 1-800 help line service a priority and
allocate resources necessary to increase phone lines and staff
to improve the Internal Revenue Service 1-800 help line
service.
United States Secret Service
salaries and expenses
For necessary expenses of the United States Secret Service,
including purchase of not to exceed 844 vehicles for police-
type use, of which 541 shall be for replacement only, and hire
of passenger motor vehicles; purchase of American-made side-car
compatible motorcycles; hire of aircraft; training and
assistance requested by State and local governments, which may
be provided without reimbursement; services of expert witnesses
at such rates as may be determined by the Director; rental of
buildings in the District of Columbia, and fencing, lighting,
guard booths, and other facilities on private or other property
not in Government ownership or control, as may be necessary to
perform protective functions; for payment of per diem and/or
subsistence allowances to employees where a protective
assignment during the actual day or days of the visit of a
protectee require an employee to work 16 hours per day or to
remain overnight at his or her post of duty; the conducting of
and participating in firearms matches; presentation of awards;
for travel of Secret Service employees on protective missions
without regard to the limitations on such expenditures in this
or any other Act if approval is obtained in advance from the
Committees on Appropriations; for research and development; for
making grants to conduct behavioral research in support of
protective research and operations; not to exceed $25,000 for
official reception and representation expenses; not to exceed
$100,000 to provide technical assistance and equipment to
foreign law enforcement organizations in counterfeit
investigations; for payment in advance for commercial
accommodations as may be necessary to perform protective
functions; and for uniforms without regard to the general
purchase price limitation for the current fiscal year,
$823,800,000, of which $3,633,000 shall be available as a grant
for activities related to the investigations of exploited
children and shall remain available until expended: Provided,
That up to $18,000,000 provided for protective travel shall
remain available until September 30, 2002.
acquisition, construction, improvements, and related expenses
For necessary expenses of construction, repair, alteration,
and improvement of facilities, $8,941,000, to remain available
until expended.
General Provisions--Department of the Treasury
Sec. 110. Any obligation or expenditure by the Secretary of
the Treasury in connection with law enforcement activities of a
Federal agency or a Department of the Treasury law enforcement
organization in accordance with 31 U.S.C. 9703(g)(4)(B) from
unobligated balances remaining in the Fund on September 30,
2001, shall be made in compliance with reprogramming
guidelines.
Sec. 111. Appropriations to the Department of the Treasury
in this Act shall be available for uniforms or allowances
therefor, as authorized by law (5 U.S.C. 5901), including
maintenance, repairs, and cleaning; purchase of insurance for
official motor vehicles operated in foreign countries; purchase
of motor vehicles without regard to the general purchase price
limitations for vehicles purchased and used overseas for the
current fiscal year; entering into contracts with the
Department of State for the furnishing of health and medical
services to employees and their dependents serving in foreign
countries; and services authorized by 5 U.S.C. 3109.
Sec. 112. The funds provided to the Bureau of Alcohol,
Tobacco and Firearms for fiscal year 2001 in this Act for the
enforcement of the Federal Alcohol Administration Act shall be
expended in a manner so as not to diminish enforcement efforts
with respect to section 105 of the Federal Alcohol
Administration Act.
Sec. 113. Not to exceed 2 percent of any appropriations in
this Act made available to the Federal Law Enforcement Training
Center, Financial Crimes Enforcement Network, Bureau of
Alcohol, Tobacco and Firearms, United States Customs Service,
and United States Secret Service may be transferred between
such appropriations upon the advance approval of the Committees
on Appropriations. No transfer may increase or decrease any
such appropriation by more than 2 percent.
Sec. 114. Not to exceed 2 percent of any appropriations in
this Act made available to the Departmental Offices, Office of
Inspector General, Treasury Inspector General for Tax
Administration, Financial Management Service, and Bureau of the
Public Debt, may be transferred between such appropriations
upon the advance approval of the Committees on Appropriations.
No transfer may increase or decrease any such appropriation by
more than 2 percent.
Sec. 115. Not to exceed 2 percent of any appropriation made
available in this Act to the Internal Revenue Service may be
transferred to the Treasury Inspector General for Tax
Administration's appropriation upon the advance approval of the
Committees on Appropriations. No transfer may increase or
decrease any such appropriation by more than 2 percent.
Sec. 116. Of the funds available for the purchase of law
enforcement vehicles, no funds may be obligated until the
Secretary of the Treasury certifies that the purchase by the
respective Treasury bureau is consistent with Departmental
vehicle management principles: Provided, That the Secretary may
delegate this authority to the Assistant Secretary for
Management.
Sec. 117. None of the funds appropriated in this Act or
otherwise available to the Department of the Treasury or the
Bureau of Engraving and Printing may be used to redesign the $1
Federal Reserve note.
Sec. 118. Hereafter, funds made available by this or any
other Act may be used to pay premium pay for protective
services authorized by section 3056(a) of title 18, United
States Code, without regard to the limitation on the rate of
pay payable during a pay period contained in section 5547(c)(2)
of title 5, United States Code, except that such premium pay
shall not be payable to an employee to the extent that the
aggregate of the employee's basic and premium pay for the year
would otherwise exceed the annual equivalent of that
limitation. The term premium pay refers to the provisions of
law cited in the first sentence of section 5547(a) of title 5,
United States Code. Payment of additional premium pay payable
under this section may be made in a lump sum on the last payday
of the calendar year.
Sec. 119. The Secretary of the Treasury may transfer funds
from ``Salaries and Expenses'', Financial Management Service,
to the Debt Services Account as necessary to cover the costs of
debt collection: Provided, That such amounts shall be
reimbursed to such Salaries and Expenses account from debt
collections received in the Debt Services Account.
Sec. 120. Under the heading of Treasury Franchise Fund in
Public Law 104-208, delete the following: the phrases ``pilot,
as authorized by section 403 of Public Law 103-356,''; and ``as
provided in such section''; and the final proviso. After the
phrase ``to be available'', insert ``without fiscal year
limitation,''. After the phrase, ``established in the Treasury
a franchise fund'', insert, ``until October 1, 2002''.
Sec. 121. Notwithstanding any other provision of law, no
reorganization of the field operations of the United States
Customs Service Office of Field Operations shall result in a
reduction in service to the area served by the Port of Racine,
Wisconsin, below the level of service provided in fiscal year
2000.
Sec. 122. Notwithstanding any other provision of law, the
Bureau of Alcohol, Tobacco and Firearms shall reimburse the
subcontractor that provided services in 1993 and 1994 pursuant
to Bureau of Alcohol, Tobacco and Firearms contract number TATF
93-3 from amounts appropriated for fiscal year 2001 or
unobligated balances from prior fiscal years, and such
reimbursement shall cover the cost of all professional services
rendered, plus interest calculated in accordance with the
Contract Dispute Act of 1978 (41 U.S.C. 601 et seq.)
This title may be cited as the ``Treasury Department
Appropriations Act, 2001''.
TITLE II--POSTAL SERVICE
Payment to the Postal Service Fund
For payment to the Postal Service Fund for revenue forgone
on free and reduced rate mail, pursuant to subsections (c) and
(d) of section 2401 of title 39, United States Code,
$96,093,000, of which $67,093,000 shall not be available for
obligation until October 1, 2001: Provided, That mail for
overseas voting and mail for the blind shall continue to be
free: Provided further, That 6-day delivery and rural delivery
of mail shall continue at not less than the 1983 level:
Provided further, That none of the funds made available to the
Postal Service by this Act shall be used to implement any rule,
regulation, or policy of charging any officer or employee of
any State or local child support enforcement agency, or any
individual participating in a State or local program of child
support enforcement, a fee for information requested or
provided concerning an address of a postal customer: Provided
further, That none of the funds provided in this Act shall be
used to consolidate or close small rural and other small post
offices in fiscal year 2001.
This title may be cited as the ``Postal Service
Appropriations Act, 2001''.
TITLE III--EXECUTIVE OFFICE OF THE PRESIDENT AND FUNDS APPROPRIATED TO
THE PRESIDENT
Compensation of the President and the White House Office
compensation of the president
For compensation of the President, including an expense
allowance at the rate of $50,000 per annum as authorized by 3
U.S.C. 102, $390,000: Provided, That none of the funds made
available for official expenses shall be expended for any other
purpose and any unused amount shall revert to the Treasury
pursuant to section 1552 of title 31, United States Code:
Provided further, That none of the funds made available for
official expenses shall be considered as taxable to the
President.
salaries and expenses
For necessary expenses for the White House as authorized by
law, including not to exceed $3,850,000 for services as
authorized by 5 U.S.C. 3109 and 3 U.S.C. 105; subsistence
expenses as authorized by 3 U.S.C. 105, which shall be expended
and accounted for as provided in that section; hire of
passenger motor vehicles, newspapers, periodicals, teletype
news service, and travel (not to exceed $100,000 to be expended
and accounted for as provided by 3 U.S.C. 103); and not to
exceed $19,000 for official entertainment expenses, to be
available for allocation within the Executive Office of the
President, $53,288,000: Provided, That $9,072,000 of the funds
appropriated shall be available for reimbursements to the White
House Communications Agency.
Executive Residence at the White House
operating expenses
For the care, maintenance, repair and alteration,
refurnishing, improvement, heating, and lighting, including
electric power and fixtures, of the Executive Residence at the
White House and official entertainment expenses of the
President, $10,900,000, to be expended and accounted for as
provided by 3 U.S.C. 105, 109, 110, and 112-114.
reimbursable expenses
For the reimbursable expenses of the Executive Residence at
the White House, such sums as may be necessary: Provided, That
all reimbursable operating expenses of the Executive Residence
shall be made in accordance with the provisions of this
paragraph: Provided further, That, notwithstanding any other
provision of law, such amount for reimbursable operating
expenses shall be the exclusive authority of the Executive
Residence to incur obligations and to receive offsetting
collections, for such expenses: Provided further, That the
Executive Residence shall require each person sponsoring a
reimbursable political event to pay in advance an amount equal
to the estimated cost of the event, and all such advance
payments shall be credited to this account and remain available
until expended: Provided further, That the Executive Residence
shall require the national committee of the political party of
the President to maintain on deposit $25,000, to be separately
accounted for and available for expenses relating to
reimbursable political events sponsored by such committee
during such fiscal year: Provided further, That the Executive
Residence shall ensure that a written notice of any amount owed
for a reimbursable operating expense under this paragraph is
submitted to the person owing such amount within 60 days after
such expense is incurred, and that such amount is collected
within 30 days after the submission of such notice: Provided
further, That the Executive Residence shall charge interest and
assess penalties and other charges on any such amount that is
not reimbursed within such 30 days, in accordance with the
interest and penalty provisions applicable to an outstanding
debt on a United States Government claim under section 3717 of
title 31, United States Code: Provided further, That each such
amount that is reimbursed, and any accompanying interest and
charges, shall be deposited in the Treasury as miscellaneous
receipts: Provided further, That the Executive Residence shall
prepare and submit to the Committees on Appropriations, by not
later than 90 days after the end of the fiscal year covered by
this Act, a report setting forth the reimbursable operating
expenses of the Executive Residence during the preceding fiscal
year, including the total amount of such expenses, the amount
of such total that consists of reimbursable official and
ceremonial events, the amount of such total that consists of
reimbursable political events, and the portion of each such
amount that has been reimbursed as of the date of the report:
Provided further, That the Executive Residence shall maintain a
system for the tracking of expenses related to reimbursable
events within the Executive Residence that includes a standard
for the classification of any such expense as political or
nonpolitical: Provided further, That no provision of this
paragraph may be construed to exempt the Executive Residence
from any other applicable requirement of subchapter I or II of
chapter 37 of title 31, United States Code.
white house repair and restoration
For the repair, alteration, and improvement of the
Executive Residence at the White House, $968,000, to remain
available until expanded, for projects for required
maintenance, safety and health issues, Presidential transition,
telecommunications infrastructure repair, and continued
preventive maintenance.
Special Assistance to the President and the Official Residence of the
Vice President
salaries and expenses
For necessary expenses to enable the Vice President to
provide assistance to the President in connection with
specially assigned functions; services as authorized by 5
U.S.C. 3109 and 3 U.S.C. 106, including subsistence expenses as
authorized by 3 U.S.C. 106, which shall be expended and
accounted for as provided in that section; and hire of
passenger motor vehicles, $3,673,000.
operating expenses
(including transfer of funds)
For the care, operation, refurnishing, improvement, heating
and lighting, including electric power and fixtures, of the
official residence of the Vice President; the hire of passenger
motor vehicles; and not to exceed $90,000 for official
entertainment expenses of the Vice President, to be accounted
for solely on his certificate, $354,000: Provided, That
advances or repayments or transfers from this appropriation may
be made to any department or agency for expenses of carrying
out such activities.
Council of Economic Advisers
salaries and expenses
For necessary expenses of the Council of Economic Advisors
in carrying out its functions under the Employment Act of 1946
(15 U.S.C. 1021), $4,110,000.
Office of Policy Development
salaries and expenses
For necessary expenses of the Office of Policy Development,
including services as authorized by 5 U.S.C. 3109 and 3 U.S.C.
107, $4,032,000.
National Security Council
salaries and expenses
For necessary expenses of the National Security Council,
including services as authorized by 5 U.S.C. 3109, $7,165,000.
Office of Administration
salaries and expenses
For necessary expenses of the Office of Administration,
including services as authorized by 5 U.S.C. 3109 and 3 U.S.C.
107, and hire of passenger motor vehicles, $43,737,000, of
which $9,905,000 shall be available until September 30, 2002
for a capital investment plan which provides for the continued
modernization of the information technology infrastructure.
Office of Management and Budget
salaries and expenses
For necessary expenses of the Office of Management and
Budget, including hire of passenger motor vehicles and services
as authorized by 5 U.S.C. 3109, $68,786,000, of which not to
exceed $5,000,000 shall be available to carry out the
provisions of chapter 35 of title 44, United States Code:
Provided, That, as provided in 31 U.S.C. 1301(a),
appropriations shall be applied only to the objects for which
appropriations were made except as otherwise provided by law:
Provided further, That none of the funds appropriated in this
Act for the Office of Management and Budget may be used for the
purpose of reviewing any agricultural marketing orders or any
activities or regulations under the provisions of the
Agricultural Marketing Agreement Act of 1937 (7 U.S.C. 601 et
seq.): Provided further, That none of the funds made available
for the Office of Management and Budget by this Act may be
expended for the altering of the transcript of actual testimony
of witnesses, except for testimony of officials of the Office
of Management and Budget, before the Committees on
Appropriations or the Committees on Veterans' Affairs or their
subcommittees: Provided further, That the preceding shall not
apply to printed hearings released by the Committees on
Appropriations or the Committees on Veterans' Affairs.
Office of National Drug Control Policy
salaries and expenses
(including transfer of funds)
For necessary expenses of the Office of National Drug
Control Policy; for research activities pursuant to the Office
of National Drug Control Policy Reauthorization Act of 1998
(title VII of division C of Public Law 105-277); not to exceed
$8,000 for official reception and representation expenses; and
for participation in joint projects or in the provision of
services on matters of mutual interest with nonprofit,
research, or public organizations or agencies, with or without
reimbursement, $24,759,000, of which $2,100,000 shall remain
available until expended, consisting of $1,100,000 for policy
research and evaluation, and $1,000,000 for the National
Alliance for Model State Drug Laws, and up to $600,000 for the
evaluation of the Drug-Free Communities Act: Provided, That the
Office is authorized to accept, hold, administer, and utilize
gifts, both real and personal, public and private, without
fiscal year limitation, for the purpose of aiding or
facilitating the work of the Office.
counterdrug technology assessment center
(including transfer of funds)
For necessary expenses for the Counterdrug Technology
Assessment Center for research activities pursuant to the
Office of National Drug Control Policy Reauthorization Act of
1998 (title VII of Division C of Public Law 105-277),
$29,053,000, which shall remain available until expended,
consisting of $15,803,000 for counternarcotics research and
development projects, and $13,250,000 for the continued
operation of the technology transfer program: Provided, That
the $15,803,000 for counternarcotics research and development
projects shall be available for transfer to other Federal
departments or agencies.
Federal Drug Control Programs
high intensity drug trafficking areas program
(including transfer of funds)
For necessary expenses of the Office of National Drug
Control Policy's High Intensity Drug Trafficking Areas Program,
$206,500,000 for drug control activities consistent with the
approved strategy for each of the designated High Intensity
Drug Trafficking Areas, of which no less than 51 percent shall
be transferred to State and local entities for drug control
activities, which shall be obligated within 120 days of the
date of the enactment of this Act: Provided, That up to 49
percent, to remain available until September 30, 2002, may be
transferred to Federal agencies and departments at a rate to be
determined by the Director: Provided further, That, of this
latter amount, $1,800,000 shall be used for auditing services:
Provided further, That HIDTAs designated as of September 30,
2000, shall be funded at fiscal year 2000 levels unless the
Director submits to the Committees, and the Committees approve,
justification for changes in those levels based on clearly
articulated priorities for the HIDTA program, as well as
published ONDCP performance measures of effectiveness.
special forfeiture fund
(including transfer of funds)
For activities to support a national anti-drug campaign for
youth, and other purposes, authorized by Public Law 105-277,
$233,600,000, to remain available until expended: Provided,
That such funds may be transferred to other Federal departments
and agencies to carry out such activities: Provided further,
That of the funds provided, $185,000,000 shall be to support a
national media campaign, as authorized in the Drug-Free Media
Campaign Act of 1998: Provided further, That of the funds
provided, $3,300,000 shall be made available to the United
States Olympic Committee's anti-doping program no later than 30
days after the enactment of this Act: Provided further, That of
the funds provided, $40,000,000 shall be to continue a program
of matching grants to drug-free communities, as authorized in
the Drug-Free Communities Act of 1997: Provided further, That
of the funds provided, $1,000,000 shall be available to the
National Drug Court Institute.
This title may be cited as the ``Executive Office
Appropriations Act, 2001''.
TITLE IV--INDEPENDENT AGENCIES
Committee for Purchase From People Who are Blind or Severely Disabled
salaries and expenses
For necessary expenses of the Committee for Purchase From
People Who Are Blind or Severely Disabled established by the
Act of June 23, 1971, Public Law 92-28, $4,158,000.
Federal Election Commission
salaries and expenses
For necessary expenses to carry out the provisions of the
Federal Election Campaign Act of 1971, as amended, $40,500,000,
of which no less than $4,689,500 shall be available for
internal automated data processing systems, and of which not to
exceed $5,000 shall be available for reception and
representation expenses.
Federal Labor Relations Authority
salaries and expenses
For necessary expenses to carry out functions of the
Federal Labor Relations Authority, pursuant to Reorganization
Plan Numbered 2 of 1978, and the Civil Service Reform Act of
1978, including services authorized by 5 U.S.C. 3109, including
hire of experts and consultants, hire of passenger motor
vehicles, and rental of conference rooms in the District of
Columbia and elsewhere, $25,058,000: Provided, That public
members of the Federal Service Impasses Panel may be paid
travel expenses and per diem in lieu of subsistence as
authorized by law (5 U.S.C. 5703) for persons employed
intermittently in the Government service, and compensation as
authorized by 5 U.S.C. 3109: Provided further, That
notwithstanding 31 U.S.C. 3302, funds received from fees
charged to non-Federal participants at labor-management
relations conferences shall be credited to and merged with this
account, to be available without further appropriation for the
costs of carrying out these conferences.
General Services Administration
real property activities
federal buildings fund
limitations on availability of revenue
(including transfer of funds)
For an additional amount to be deposited in, and to be used
for the purposes of, the Fund established pursuant to section
210(f) of the Federal Property and Administration Act of 1949,
as amended (40 U.S.C. 490(f)), $464,154,000. The revenues and
collections deposited into the Fund shall be available for
necessary expenses of real property management and related
activities not otherwise provided for, including operation,
maintenance, and protection of federally owned and leased
buildings; rental of buildings in the District of Columbia;
restoration of leased premises; moving governmental agencies
(including space adjustments and telecommunications relocation
expenses) in connection with the assignment, allocation and
transfer of space; contractual services incident to cleaning or
servicing buildings, and moving; repair and alteration of
federally owned buildings including grounds, approaches and
appurtenances; care and safeguarding of sites; maintenance,
preservation, demolition, and equipment; acquisition of
buildings and sites by purchase, condemnation, or as otherwise
authorized by law; acquisition of options to purchase buildings
and sites; conversion and extension of federally owned
buildings; preliminary planning and design of projects by
contract or otherwise; construction of new buildings (including
equipment for such buildings); and payment of principal,
interest, and any other obligations for public buildings
acquired by installment purchase and purchase contract; in the
aggregate amount of $5,971,509,000 of which (1) $472,176,000
shall remain available until expended for construction
(including funds for sites and expenses and associated design
and construction services) of additional projects at the
following locations: California, Los Angeles, U.S. Courthouse;
District of Columbia, Bureau of Alcohol, Tobacco and Firearms
Headquarters; Florida, Saint Petersburg, Combined Law
Enforcement Facility; Maryland, Montgomery County, Food and
Drug Administration Consolidation; Michigan, Sault St. Marie,
Border Station; Mississippi, Biloxi-Gulfport, U.S. Courthouse;
Montana, Eureka/Roosville, Border Station; Virginia, Richmond,
U.S. Courthouse; Washington, Seattle, U.S. Courthouse:
Provided, That funding for any project identified above may be
exceeded to the extent that savings are effected in other such
projects, but not to exceed 10 percent of the amounts included
in an approved prospectus, if required, unless advance approval
is obtained from the Committees on Appropriations of a greater
amount: Provided further, That all funds for direct
construction projects shall expire on September 30, 2002, and
remain in the Federal Buildings Fund except for funds for
projects as to which funds for design or other funds have been
obligated in whole or in part prior to such date; (2)
$671,193,000 shall remain available until expended for repairs
and alterations which includes associated design and
construction services: Provided further, That funds in the
Federal Buildings Fund for Repairs and Alterations shall, for
prospectus projects, be limited to the amount by project, as
follows, except each project may be increased by an amount not
to exceed 10 percent unless advance approval is obtained from
the Committees on Appropriations of a greater amount:
Repairs and alterations:
Arizona:
Phoenix, Federal Building Courthouse,
$26,962,000
California:
Santa Ana, Federal Building, $27,864,000
District of Columbia:
Internal Revenue Service Headquarters
(Phase 1), $31,780,000
Main State Building, (Phase 3), $28,775,000
Maryland:
Woodlawn, SSA National Computer Center,
$4,285,000
Michigan:
Detroit, McNamara Federal Building,
$26,999,000
Missouri:
Kansas City, Richard Bolling Federal
Building, $25,882,000
Kansas City, Federal Building, 8930 Ward
Parkway, $8,964,000
Nebraska:
Omaha, Zorinsky Federal Building,
$45,960,000
New York:
New York City, 40 Foley Square, $5,037,000
Ohio:
Cincinnati, Potter Stewart U.S. Courthouse,
$18,434,000
Pennsylvania:
Pittsburgh, U.S. Post Office-Courthouse,
$54,144,000
Utah:
Salt Lake City, Bennett Federal Building,
$21,199,000
Virginia:
Reston, J.W. Powell Federal Building (Phase
2), $22,993,000
Nationwide:
Design Program, $21,915,000
Energy Program, $5,000,000
Glass Fragment Retention Program,
$5,000,000
Basic Repairs and Alterations,
$290,000,000:
Provided further, That additional projects for which
prospectuses have been fully approved may be funded under this
category only if advance notice is transmitted to the
Committees on Appropriations: Provided further, That the
amounts provided in this or any prior Act for ``Repairs and
Alterations'' may be used to fund costs associated with
implementing security improvements to buildings necessary to
meet the minimum standards for security in accordance with
current law and in compliance with the reprogramming guidelines
of the appropriate Committees of the House and Senate: Provided
further, That the difference between the funds appropriated and
expended on any projects in this or any prior Act, under the
heading ``Repairs and Alterations'', may be transferred to
Basic Repairs and Alterations or used to fund authorized
increases in prospectus projects: Provided further, That all
funds for repairs and alterations prospectus projects shall
expire on September 30, 2002, and remain in the Federal
Buildings Fund except funds for projects as to which funds for
design or other funds have been obligated in whole or in part
prior to such date: Provided further, That the amount provided
in this or any prior Act for Basic Repairs and Alterations may
be used to pay claims against the Government arising from any
projects under the heading ``Repairs and Alterations'' or used
to fund authorized increases in prospectus projects; (3)
$185,369,000 for installment acquisition payments including
payments on purchase contracts which shall remain available
until expended; (4) $2,944,905,000 for rental of space which
shall remain available until expended; and (5) $1,624,771,000
for building operations which shall remain available until
expended: Provided further, That in addition to amounts made
available herein, $276,400,000 shall be deposited to the Fund,
to become available on October 1, 2001, and remain available
until expended for the following construction projects
(including funds for sites and expenses and associated design
and construction services): District of Columbia, U.S.
Courthouse Annex; Florida, Miami, U.S. Courthouse;
Massachusetts, Springfield, U.S. Courthouse; New York, Buffalo,
U.S. Courthouse: Provided further, That funding for any project
identified above may be exceeded to the extent that savings are
effected in other such projects, but not to exceed 10 percent
of the amounts included in an approved prospectus, if required,
unless advance approval is obtained from the Committees on
Appropriations of a greater amount: Provided further, That
funds available to the General Services Administration shall
not be available for expenses of any construction, repair,
alteration and acquisition project for which a prospectus, if
required by the Public Buildings Act of 1959, as amended, has
not been approved, except that necessary funds may be expended
for each project for required expenses for the development of a
proposed prospectus: Provided further, That funds available in
the Federal Buildings Fund may be expended for emergency
repairs when advance approval is obtained from the Committees
on Appropriations: Provided further, That amounts necessary to
provide reimbursable special services to other agencies under
section 210(f)(6) of the Federal Property and Administrative
Services Act of 1949, as amended (40 U.S.C. 490(f)(6)) and
amounts to provide such reimbursable fencing, lighting, guard
booths, and other facilities on private or other property not
in Government ownership or control as may be appropriate to
enable the United States Secret Service to perform its
protective functions pursuant to 18 U.S.C. 3056, shall be
available from such revenues and collections: Provided further,
That revenues and collections and any other sums accruing to
this Fund during fiscal year 2001, excluding reimbursements
under section 210(f)(6) of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 490(f)(6)) in
excess of $5,971,509,000 shall remain in the Fund and shall not
be available for expenditure except as authorized in
appropriations Acts.
policy and operations
For expenses authorized by law, not otherwise provided for,
for Government-wide policy and oversight activities associated
with asset management activities; utilization and donation of
surplus personal property; transportation; procurement and
supply; Government-wide responsibilities relating to automated
data management, telecommunications, information resources
management, and related technology activities; utilization
survey, deed compliance inspection, appraisal, environmental
and cultural analysis, and land use planning functions
pertaining to excess and surplus real property; agency-wide
policy direction; Board of Contract Appeals; accounting,
records management, and other support services incident to
adjudication of Indian Tribal Claims by the United States Court
of Federal Claims; services as authorized by 5 U.S.C. 3109; and
not to exceed $5,000 for official reception and representation
expenses, $123,920,000, of which $27,301,000 shall remain
available until expended: Provided, That none of the funds
appropriated from this Act shall be available to convert the
Old Post Office at 1100 Pennsylvania Avenue in Northwest
Washington, D.C., from office use to any other use until a
comprehensive plan, which shall include street-level retail
use, has been approved by the Senate Committee on
Appropriations, the House Committee on Transportation and
Infrastructure, and the Senate Committee on Environment and
Public Works: Provided further, That no funds from this Act
shall be available to acquire by purchase, condemnation, or
otherwise the leasehold rights of the existing lease with
private parties at the Old Post Office prior to the approval of
the comprehensive plan by the Senate Committee on
Appropriations, the House Committee on Transportation and
Infrastructure, and the Senate Committee on Environment and
Public Works.
office of inspector general
For necessary expenses of the Office of Inspector General
and services authorized by 5 U.S.C. 3109, $34,520,000:
Provided, That not to exceed $15,000 shall be available for
payment for information and detection of fraud against the
Government, including payment for recovery of stolen Government
property: Provided further, That not to exceed $2,500 shall be
available for awards to employees of other Federal agencies and
private citizens in recognition of efforts and initiatives
resulting in enhanced Office of Inspector General
effectiveness.
allowances and office staff for former presidents
(including transfer of funds)
For carrying out the provisions of the Act of August 25,
1958, as amended (3 U.S.C. 102 note), and Public Law 95-138,
$2,517,000: Provided, That the Administrator of General
Services shall transfer to the Secretary of the Treasury such
sums as may be necessary to carry out the provisions of such
Acts.
expenses, presidential transition
For expenses necessary to carry out the Presidential
Transition Act of 1963, as amended, $7,100,000.
General Services Administration--General Provisions
Sec. 401. The appropriate appropriation or fund available
to the General Services Administration shall be credited with
the cost of operation, protection, maintenance, upkeep, repair,
and improvement, included as part of rentals received from
Government corporations pursuant to law (40 U.S.C. 129).
Sec. 402. Funds available to the General Services
Administration shall be available for the hire of passenger
motor vehicles.
Sec. 403. Funds in the Federal Buildings Fund made
available for fiscal year 2001 for Federal Buildings Fund
activities may be transferred between such activities only to
the extent necessary to meet program requirements: Provided,
That any proposed transfers shall be approved in advance by the
Committees on Appropriations.
Sec. 404. No funds made available by this Act shall be used
to transmit a fiscal year 2002 request for United States
Courthouse construction that: (1) does not meet the design
guide standards for construction as established and approved by
the General Services Administration, the Judicial Conference of
the United States, and the Office of Management and Budget; and
(2) does not reflect the priorities of the Judicial Conference
of the United States as set out in its approved 5-year
construction plan: Provided, That the fiscal year 2002 request
must be accompanied by a standardized courtroom utilization
study of each facility to be constructed, replaced, or
expanded.
Sec. 405. None of the funds provided in this Act may be
used to increase the amount of occupiable square feet, provide
cleaning services, security enhancements, or any other service
usually provided through the Federal Buildings Fund, to any
agency that does not pay the rate per square foot assessment
for space and services as determined by the General Services
Administration in compliance with the Public Buildings
Amendments Act of 1972 (Public Law 92-313).
Sec. 406. Funds provided to other Government agencies by
the Information Technology Fund, General Services
Administration, under 40 U.S.C. 757 and sections 5124(b) and
5128 of Public Law 104-106, Information Technology Management
Reform Act of 1996, for performance of pilot information
technology projects which have potential for Government-wide
benefits and savings, may be repaid to this Fund from any
savings actually incurred by these projects or other funding,
to the extent feasible.
Sec. 407. From funds made available under the heading
``Federal Buildings Fund, Limitations on Availability of
Revenue'', claims against the Government of less than $250,000
arising from direct construction projects and acquisition of
buildings may be liquidated from savings effected in other
construction projects with prior notification to the Committees
on Appropriations.
Sec. 408. Section 411 of Public Law 106-58 is amended by
striking ``April 30, 2001'' each place it appears and inserting
``April 30, 2002''.
Sec. 409. Designation of Ronald N. Davies Federal Building
and United States Courthouse. (a) The Federal building and
courthouse located at 102 North 4th Street, Grand Forks, North
Dakota, shall be known and designated as the ``Ronald N. Davies
Federal Building and United States Courthouse''.
(b) Any reference in a law, map, regulation, document,
paper, or other record of the United States to the Federal
building and courthouse referred to in section 1 shall be
deemed to be a reference to the Ronald N. Davies Federal
Building and United States Courthouse.
Sec. 410. From the funds made available under the heading
``Federal Buildings Fund Limitations on Revenue'', in addition
to amounts provided in budget activities above, up to
$2,500,000 shall be available for the construction of a road
and acquisition of the property necessary for construction of
said road and associated port of entry facilities: Provided,
That said property shall include a 125 foot wide right of way
beginning approximately 700 feet east of Highway 11 at the
northeast corner of the existing port facilities and going
north approximately 4,750 feet and approximately 10.22 acres
adjacent to the port of entry in Township 29 S. Range 8W.,
Section 14: Provided further, That construction of the road
shall occur only after this property is deeded and conveyed to
the United States by and through the General Services
Administration without reimbursement or cost to the United
States at the election of its current landholder: Provided
further, That notwithstanding any other provision of law, and
subject to the foregoing conditions, the Administrator of
General Services shall construct a road to the Columbus, New
Mexico Port of Entry Station on the property, connecting the
port with a road to be built by the County of Luna, New Mexico
to connect to State Highway 11: Provided further, That
notwithstanding any other provision of law, Luna County shall
construct the roadway from State Highway 11 to the terminus of
the northbound road to be constructed by the General Services
Administration in time for completion of the road to be
constructed by the General Services Administration in time for
completion of the road to be constructed by the General
Services Administration: Provided further, That upon completion
of the construction of the road by the General Services
Administration, and notwithstanding any other provision of law,
the Administrator of General Services shall convey to the
municipality of Luna County, New Mexico, without reimbursement,
all right, title, and interest of the United States to that
portion of the property constituting the improved road and
standard county road right of way which is not required for the
operation of the port of entry: Provided further, That the
General Services Administration on behalf of the United States
upon conveyance of the property to the municipality of Luna,
New Mexico, shall retain the balance of the property located
adjacent to the port, consisting of approximately 12 acres, to
be owned or otherwise managed by the Administrator pursuant to
the Federal Property and Administrative Services Act of 1949,
as amended: Provided further, That the General Services
Administration is authorized to acquire such additional real
property and rights in real property as may be necessary to
construct said road and provide a contiguous site for the port
of entry: Provided further, That the United States shall incur
no liability for any environmental laws or conditions existing
at the property at the time of conveyance to the United States
or in connection with the construction of the road: Provided
further, That Luna County and the Village of Columbus shall be
responsible for providing adequate access and egress to
existing properties east of the port of entry: Provided
further, That the Bureau of Land Management, the International
Boundary and Water Commission, the Federal Inspection Agencies
and the Department of State shall take all actions necessary to
facilitate the construction of the road and expansion of the
port facilities.
Sec. 411. Designation of J. Bratton Davis United States
Bankruptcy Courthouse. (a) The United States bankruptcy
courthouse at 1100 Laurel Street in Columbia, South Carolina,
shall be known and designated as the ``J. Bratton Davis United
States Bankruptcy Courthouse''.
(b) Any reference in a law, map, regulation, document,
paper, or other record of the United States to the United
States bankruptcy courthouse referred to in subsection (a)
shall be deemed to be a reference to the ``J. Bratton Davis
United States Bankruptcy Courthouse''.
Sec. 412. (a) The United States Courthouse Annex located at
901 19th Street in Denver, Colorado is hereby designated as the
``Alfred A. Arraj United States Courthouse Annex''.
(b) Any reference in a law, map, regulation, document, or
paper or other record of the United States to the Courthouse
Annex herein referred to in subsection (a) shall be deemed to
be a reference to the ``Alfred A. Arraj United States
Courthouse Annex''.
Sec. 413. Designation of the Paul Coverdell Dormitory. The
dormitory building currently being constructed on the Core
Campus of the Federal Law Enforcement Training Center in
Glynco, Georgia, shall be known and designated as the ``Paul
Coverdell Dormitory''.
Merit Systems Protection Board
salaries and expenses
(including transfer of funds)
For necessary expenses to carry out functions of the Merit
Systems Protection Board pursuant to Reorganization Plan
Numbered 2 of 1978 and the Civil Service Reform Act of 1978,
including services as authorized by 5 U.S.C. 3109, rental of
conference rooms in the District of Columbia and elsewhere,
hire of passenger motor vehicles, and direct procurement of
survey printing, $29,437,000 together with not to exceed
$2,430,000 for administrative expenses to adjudicate retirement
appeals to be transferred from the Civil Service Retirement and
Disability Fund in amounts determined by the Merit Systems
Protection Board.
Federal Payment to Morris K. Udall Scholarship and Excellence in
National Environmental Policy Foundation
For payment to the Morris K. Udall Scholarship and
Excellence in National Environmental Trust Fund, to be
available for the purposes of Public Law 102-252, $2,000,000,
to remain available until expended.
Environmental Dispute Resolution Fund
For payment to the Environmental Dispute Resolution Fund to
carry out activities authorized in the Environmental Policy and
Conflict Resolution Act of 1998, $1,250,000, to remain
available until expended.
National Archives and Records Administration
operating expenses
For necessary expenses in connection with the
administration of the National Archives (including the
Information Security Oversight Office) and archived Federal
records and related activities, as provided by law, and for
expenses necessary for the review and declassification of
documents, and for the hire of passenger motor vehicles,
$209,393,000: Provided, That the Archivist of the United States
is authorized to use any excess funds available from the amount
borrowed for construction of the National Archives facility,
for expenses necessary to provide adequate storage for
holdings.
repairs and restoration
For the repair, alteration, and improvement of archives
facilities, and to provide adequate storage for holdings,
$95,150,000, to remain available until expended of which
$88,000,000 is to complete renovation of the National Archives
Building.
National Historical Publications and Records Commission
grants program
(including rescission of funds)
For necessary expenses for allocations and grants for
historical publications and records as authorized by 44 U.S.C.
2504, as amended, $6,450,000, to remain available until
expended.
Office of Government Ethics
salaries and expenses
For necessary expenses to carry out functions of the Office
of Government Ethics pursuant to the Ethics in Government Act
of 1978, as amended and the Ethics Reform Act of 1989,
including services as authorized by 5 U.S.C. 3109, rental of
conference rooms in the District of Columbia and elsewhere,
hire of passenger motor vehicles, and not to exceed $1,500 for
official reception and representation expenses, $9,684,000.
Office of Personnel Management
salaries and expenses
(including transfer of trust funds)
For necessary expenses to carry out functions of the Office
of Personnel Management pursuant to Reorganization Plan
Numbered 2 of 1978 and the Civil Service Reform Act of 1978,
including services as authorized by 5 U.S.C. 3109; medical
examinations performed for veterans by private physicians on a
fee basis; rental of conference rooms in the District of
Columbia and elsewhere; hire of passenger motor vehicles; not
to exceed $2,500 for official reception and representation
expenses; advances for reimbursements to applicable funds of
the Office of Personnel Management and the Federal Bureau of
Investigation for expenses incurred under Executive Order No.
10422 of January 9, 1953, as amended; and payment of per diem
and/or subsistence allowances to employees where Voting Rights
Act activities require an employee to remain overnight at his
or her post of duty, $94,095,000; and in addition $101,986,000
for administrative expenses, to be transferred from the
appropriate trust funds of the Office of Personnel Management
without regard to other statutes, including direct procurement
of printed materials, for the retirement and insurance
programs, of which $10,500,000 shall remain available until
expended for the cost of automating the retirement
recordkeeping systems: Provided, That the provisions of this
appropriation shall not affect the authority to use applicable
trust funds as provided by sections 8348(a)(1)(B) and 8909(g)
of title 5, United States Code: Provided further, That no part
of this appropriation shall be available for salaries and
expenses of the Legal Examining Unit of the Office of Personnel
Management established pursuant to Executive Order No. 9358 of
July 1, 1943, or any successor unit of like purpose: Provided
further, That the President's Commission on White House
Fellows, established by Executive Order No. 11183 of October 3,
1964, may, during fiscal year 2001, accept donations of money,
property, and personal services in connection with the
development of a publicity brochure to provide information
about the White House Fellows, except that no such donations
shall be accepted for travel or reimbursement of travel
expenses, or for the salaries of employees of such Commission.
office of inspector general
salaries and expenses
(including transfer of trust funds)
For necessary expenses of the Office of Inspector General
in carrying out the provisions of the Inspector General Act, as
amended, including services as authorized by 5 U.S.C. 3109,
hire of passenger motor vehicles, $1,360,000; and in addition,
not to exceed $9,745,000 for administrative expenses to audit,
investigate, and provide other oversight of the Office of
Personnel Management's retirement and insurance programs, to be
transferred from the appropriate trust funds of the Office of
Personnel Management, as determined by the Inspector General:
Provided, That the Inspector General is authorized to rent
conference rooms in the District of Columbia and elsewhere.
government payment for annuitants, employees health benefits
For payment of Government contributions with respect to
retired employees, as authorized by chapter 89 of title 5,
United States Code, and the Retired Federal Employees Health
Benefits Act (74 Stat. 849), as amended, such sums as may be
necessary.
government payment for annuitants, employee life insurance
For payment of Government contributions with respect to
employees retiring after December 31, 1989, as required by
chapter 87 of title 5, United States Code, such sums as may be
necessary.
payment to civil service retirement and disability fund
For financing the unfunded liability of new and increased
annuity benefits becoming effective on or after October 20,
1969, as authorized by 5 U.S.C. 8348, and annuities under
special Acts to be credited to the Civil Service Retirement and
Disability Fund, such sums as may be necessary: Provided, That
annuities authorized by the Act of May 29, 1944, as amended,
and the Act of August 19, 1950, as amended (33 U.S.C. 771-775),
may hereafter be paid out of the Civil Service Retirement and
Disability Fund.
Office of Special Counsel
salaries and expenses
For necessary expenses to carry out functions of the Office
of Special Counsel pursuant to Reorganization Plan Numbered 2
of 1978, the Civil Service Reform Act of 1978 (Public Law 95-
454), the Whistleblower Protection Act of 1989 (Public Law 101-
12), Public Law 103-424, and the Uniformed Services Employment
and Reemployment Act of 1994 (Public Law 103-353), including
services as authorized by 5 U.S.C. 3109, payment of fees and
expenses for witnesses, rental of conference rooms in the
District of Columbia and elsewhere, and hire of passenger motor
vehicles, $11,147,000.
United States Tax Court
salaries and expenses
For necessary expenses, including contract reporting and
other services as authorized by 5 U.S.C. 3109, $37,305,000:
Provided, That travel expenses of the judges shall be paid upon
the written certificate of the judge.
This title may be cited as the ``Independent Agencies
Appropriations Act, 2001''.
TITLE V--GENERAL PROVISIONS
This Act
Sec. 501. No part of any appropriation contained in this
Act shall remain available for obligation beyond the current
fiscal year unless expressly so provided herein.
Sec. 502. The expenditure of any appropriation under this
Act for any consulting service through procurement contract,
pursuant to 5 U.S.C. 3109, shall be limited to those contracts
where such expenditures are a matter of public record and
available for public inspection, except where otherwise
provided under existing law, or under existing Executive order
issued pursuant to existing law.
Sec. 503. None of the funds made available by this Act
shall be available for any activity or for paying the salary of
any Government employee where funding an activity or paying a
salary to a Government employee would result in a decision,
determination, rule, regulation, or policy that would prohibit
the enforcement of section 307 of the Tariff Act of 1930.
Sec. 504. None of the funds made available by this Act
shall be available in fiscal year 2001 for the purpose of
transferring control over the Federal Law Enforcement Training
Center located at Glynco, Georgia, and Artesia, New Mexico, out
of the Department of the Treasury.
Sec. 505. No part of any appropriation contained in this
Act shall be available to pay the salary for any person filling
a position, other than a temporary position, formerly held by
an employee who has left to enter the Armed Forces of the
United States and has satisfactorily completed his period of
active military or naval service, and has within 90 days after
his release from such service or from hospitalization
continuing after discharge for a period of not more than 1
year, made application for restoration to his former position
and has been certified by the Office of Personnel Management as
still qualified to perform the duties of his former position
and has not been restored thereto.
Sec. 506. No funds appropriated pursuant to this Act may be
expended by an entity unless the entity agrees that in
expending the assistance the entity will comply with sections 2
through 4 of the Act of March 3, 1933 (41 U.S.C. 10a-10c,
popularly known as the ``Buy American Act'').
Sec. 507. (a) Purchase of American-Made Equipment and
Products.--In the case of any equipment or products that may be
authorized to be purchased with financial assistance provided
under this Act, it is the sense of the Congress that entities
receiving such assistance should, in expending the assistance,
purchase only American-made equipment and products.
(b) Notice to Recipients of Assistance.--In providing
financial assistance under this Act, the Secretary of the
Treasury shall provide to each recipient of the assistance a
notice describing the statement made in subsection (a) by the
Congress.
Sec. 508. If it has been finally determined by a court or
Federal agency that any person intentionally affixed a label
bearing a ``Made in America'' inscription, or any inscription
with the same meaning, to any product sold in or shipped to the
United States that is not made in the United States, such
person shall be ineligible to receive any contract or
subcontract made with funds provided pursuant to this Act,
pursuant to the debarment, suspension, and ineligibility
procedures described in sections 9.400 through 9.409 of title
48, Code of Federal Regulations.
Sec. 509. No funds appropriated by this Act shall be
available to pay for an abortion, or the administrative
expenses in connection with any health plan under the Federal
employees health benefit program which provides any benefits or
coverage for abortions.
Sec. 510. The provision of section 509 shall not apply
where the life of the mother would be endangered if the fetus
were carried to term, or the pregnancy is the result of an act
of rape or incest.
Sec. 511. Except as otherwise specifically provided by law,
not to exceed 50 percent of unobligated balances remaining
available at the end of fiscal year 2001 from appropriations
made available for salaries and expenses for fiscal year 2001
in this Act, shall remain available through September 30, 2002,
for each such account for the purposes authorized: Provided,
That a request shall be submitted to the Committees on
Appropriations for approval prior to the expenditure of such
funds: Provided further, That these requests shall be made in
compliance with reprogramming guidelines.
Sec. 512. None of the funds made available in this Act may
be used by the Executive Office of the President to request
from the Federal Bureau of Investigation any official
background investigation report on any individual, except
when--
(1) such individual has given his or her express
written consent for such request not more than 6 months
prior to the date of such request and during the same
presidential administration; or
(2) such request is required due to extraordinary
circumstances involving national security.
Sec. 513. The cost accounting standards promulgated under
section 26 of the Office of Federal Procurement Policy Act
(Public Law 93-400; 41 U.S.C. 422) shall not apply with respect
to a contract under the Federal Employees Health Benefits
Program established under chapter 89 of title 5, United States
Code.
Sec. 514. (a) In General.--As soon as practicable after the
date of the enactment of this Act, the Archivist of the United
States shall transfer to the Gerald R. Ford Foundation, as
trustee, all right, title, and interest of the United States in
and to the approximately 2.3 acres of land located within Grand
Rapids, Michigan, and further described in subsection (b), such
grant to be in trust, with the beneficiary being the National
Archives and Records Administration, for the purpose of
supporting the facilities and programs of the Gerald R. Ford
Museum in Grand Rapids, Michigan, and the Gerald R. Ford
Library in Ann Arbor, Michigan, in accordance with a trust
agreement to be agreed upon by the Archivist and the Gerald R.
Ford Foundation.
(b) Land Description.--The land to be transferred pursuant
to subsection (a) is described as follows:
The following premises in the City of Grand Rapids, County
of Kent, State of Michigan, described as:
That part of Block 2, Converse Plat, and that part of
Block 2 of J.W. Converse Replatted Addition, and that part of
Government Lot 1 of Section 25, T7N, R12W, City of Grand
Rapids, Kent County, Michigan, described as: BEGINNING at the
NE corner of Lot 1 of Block 2 of Converse Plat; thence East
245.0 feet along the South line of Bridge Street; thence South
230.0 feet along a line which is parallel with and 170 feet
East from the East line of Front Avenue as originally platted;
thence West 207.5 feet parallel with the South line of Bridge
Street; thence South along the centerline of vacated Front
Avenue 109 feet more or less to the extended centerline of
vacated Douglas Street; thence West along the centerline of
vacated Douglas Street 237.5 feet more or less to the East line
of Scribner Avenue; thence North along the East line of
Scribner Avenue 327 feet more or less to a point which is 7.0
feet South from the NW corner of Lot 8 of Block 2 of Converse
Plat; thence Easterly 200 feet more or less to the place of
beginning, also described as:
Parcel A--Lots 9 & 10, Block 2 of Converse Plat, being
the subdivision of Government Lots 1 & 2, Section 25, T7N,
R12W; also Lots 11-24, Block 2 of J.W. Converse Replatted
Addition; also part of N \1/2\ of Section 25, T7N, R12W
commencing at SE corner Lot 24, Block 2 of J.W. Converse
Replatted Addition, thence N to NE corner of Lot 9 of Converse
Plat, thence E 16 feet, thence S to SW corner of Lot 23 of J.W.
Converse Replatted Addition, thence W 16 feet to beginning.
Parcel B--Part of Section 25, T7N, R12W, commencing on S
line of Bridge Street 50 feet E of E line of Front Avenue,
thence S 107.85 feet, thence 77 feet, thence N to a point on S
line of said street which is 80 feet E of beginning, thence W
to beginning.
Parcel C--Part of Section 25, T7N, R12W, commencing at SE
corner Bridge Street & Front Avenue, thence E 50 feet, thence S
107.85 feet to alley, thence W 50 feet to E line Front Avenue,
thence N 106.81 feet to beginning.
Parcel D--Part of Government Lot 1, Section 25, T7N,
R12W, commencing at a point on S line of Bridge Street (66,
wide) 170 feet E of E line of Front Avenue (75, wide), thence S
230 feet parallel with Front Avenue, thence W 170 feet parallel
with Bridge Street to E line of Front Avenue, thence N along
said line to a point 106.81 feet S of intersection of said line
with extension of N & S line of Bridge Street, thence E 127
feet, thence northerly to a point on S line of Bridge Street
130 feet E of E line of Front Avenue, thence E along S line of
Bridge Street to beginning.
Parcel E--Lots 1 through 8 of Block 2 of Converse Plat,
being the subdivision of Government Lots 1 and 2, Section 25,
T7N, R12W.
Also part of N \1/2\ of Section 25, T7N, R12W, commencing
at NW corner of Lot 9, Block 2 of J.W. Converse Replatted
Addition; thence N 15 feet to SW corner of Lot 8; thence E 200
feet to SE corner Lot 1; thence S 15 feet to NE corner of Lot
10; thence W 200 feet to beginning.
Together with any portion of vacated streets and alleys
that have become part of the above property.
(c) Terms and Conditions.--
(1) Compensation.--The land transferred pursuant to
subsection (a) shall be transferred without
compensation to the United States.
(2) Appointment of successor trustee.--In the event
that the Gerald R. Ford Foundation for any reason is
unable or unwilling to continue to serve as trustee,
the Archivist of the United States is authorized to
appoint a successor trustee.
(3) Reversionary interest.--If the Archivist of the
United States determines that the Gerald R. Ford
Foundation (or a successor trustee appointed under
paragraph (2)) has breached its fiduciary duty under
the trust agreement entered into pursuant to this
section, the land transferred pursuant to subsection
(a) shall revert to the United States under the
administrative jurisdiction of the Archivist.
Sec. 515. (a) In General.--The Director of the Office of
Management and Budget shall, by not later than September 30,
2001, and with public and Federal agency involvement, issue
guidelines under sections 3504(d)(1) and 3516 of title 44,
United States Code, that provide policy and procedural guidance
to Federal agencies for ensuring and maximizing the quality,
objectivity, utility, and integrity of information (including
statistical information) disseminated by Federal agencies in
fulfillment of the purposes and provisions of chapter 35 of
title 44, United States Code, commonly referred to as the
Paperwork Reduction Act.
(b) Content of Guidelines.--The guidelines under subsection
(a) shall--
(1) apply to the sharing by Federal agencies of,
and access to, information disseminated by Federal
agencies; and
(2) require that each Federal agency to which the
guidelines apply--
(A) issue guidelines ensuring and
maximizing the quality, objectivity, utility,
and integrity of information (including
statistical information) disseminated by the
agency, by not later than 1 year after the date
of issuance of the guidelines under subsection
(a);
(B) establish administrative mechanisms
allowing affected persons to seek and obtain
correction of information maintained and
disseminated by the agency that does not comply
with the guidelines issued under subsection
(a); and
(C) report periodically to the Director--
(i) the number and nature of
complaints received by the agency
regarding the accuracy of information
disseminated by the agency; and
(ii) how such complaints were
handled by the agency.
Sec. 516. For the purpose of resolving litigation and
implementing any settlement agreements regarding the nonforeign
area cost-of-living allowance program, the Office of Personnel
Management may accept and utilize (without regard to any
restriction on unanticipated travel expenses imposed in an
Appropriations Act) funds made available to the Office pursuant
to court approval.
Sec. 517. None of the funds appropriated by this Act shall
be used to propose or issue rules, regulations, decrees, or
orders for the purpose of implementation, or in preparation for
implementation, of the Kyoto Protocol, which was adopted on
December 11, 1997, in Kyoto, Japan, at the Third Conference of
the Parties to the United Nations Framework Convention on
Climate Change, which has not been submitted to the Senate for
advice and consent to ratification pursuant to article II,
section 2, clause 2, of the United States Constitution, and
which has not entered into force pursuant to article 25 of the
Protocol.
Sec. 518. Not later than July 1, 2001, the Director of the
Office of Management and Budget shall submit a report to the
Committee on Appropriations and the Committee on Governmental
Affairs in the Senate and the Committee on Appropriations and
the Committee on Government Reform of the House of
Representatives that (1) evaluates, for each agency, the extent
to which implementation of chapter 35 of title 31, United
States Code, as amended by the Paperwork Reduction Act of 1995
(Public Law 104-13), has reduced burden imposed by rules issued
by the agency, including the burden imposed by each major rule
issued by the agency; (2) includes a determination, based on
such evaluation, of the need for additional procedures to
ensure achievement of the purposes of that chapter, as set
forth in section 3501 of title 31, United States Code, and
evaluates the burden imposed by each major rule that imposes
more than 10,000,000 hours of burden, and identifies specific
reductions expected to be achieved in each of fiscal years 2001
and 2002 in the burden imposed by all rules issued by each
agency that issued such a major rule.
TITLE VI--GENERAL PROVISIONS
Departments, Agencies, and Corporations
Sec. 601. Funds appropriated in this or any other Act may
be used to pay travel to the United States for the immediate
family of employees serving abroad in cases of death or life
threatening illness of said employee.
Sec. 602. No department, agency, or instrumentality of the
United States receiving appropriated funds under this or any
other Act for fiscal year 2001 shall obligate or expend any
such funds, unless such department, agency, or instrumentality
has in place, and will continue to administer in good faith, a
written policy designed to ensure that all of its workplaces
are free from the illegal use, possession, or distribution of
controlled substances (as defined in the Controlled Substances
Act) by the officers and employees of such department, agency,
or instrumentality.
Sec. 603. Unless otherwise specifically provided, the
maximum amount allowable during the current fiscal year in
accordance with section 16 of the Act of August 2, 1946 (60
Stat. 810), for the purchase of any passenger motor vehicle
(exclusive of buses, ambulances, law enforcement, and
undercover surveillance vehicles), is hereby fixed at $8,100
except station wagons for which the maximum shall be $9,100:
Provided, That these limits may be exceeded by not to exceed
$3,700 for police-type vehicles, and by not to exceed $4,000
for special heavy-duty vehicles: Provided further, That the
limits set forth in this section may not be exceeded by more
than 5 percent for electric or hybrid vehicles purchased for
demonstration under the provisions of the Electric and Hybrid
Vehicle Research, Development, and Demonstration Act of 1976:
Provided further, That the limits set forth in this section may
be exceeded by the incremental cost of clean alternative fuels
vehicles acquired pursuant to Public Law 101-549 over the cost
of comparable conventionally fueled vehicles.
Sec. 604. Appropriations of the executive departments and
independent establishments for the current fiscal year
available for expenses of travel, or for the expenses of the
activity concerned, are hereby made available for quarters
allowances and cost-of-living allowances, in accordance with 5
U.S.C. 5922-5924.
Sec. 605. Unless otherwise specified during the current
fiscal year, no part of any appropriation contained in this or
any other Act shall be used to pay the compensation of any
officer or employee of the Government of the United States
(including any agency the majority of the stock of which is
owned by the Government of the United States) whose post of
duty is in the continental United States unless such person:
(1) is a citizen of the United States; (2) is a person in the
service of the United States on the date of the enactment of
this Act who, being eligible for citizenship, has filed a
declaration of intention to become a citizen of the United
States prior to such date and is actually residing in the
United States; (3) is a person who owes allegiance to the
United States; (4) is an alien from Cuba, Poland, South
Vietnam, the countries of the former Soviet Union, or the
Baltic countries lawfully admitted to the United States for
permanent residence; (5) is a South Vietnamese, Cambodian, or
Laotian refugee paroled in the United States after January 1,
1975; or (6) is a national of the People's Republic of China
who qualifies for adjustment of status pursuant to the Chinese
Student Protection Act of 1992: Provided, That for the purpose
of this section, an affidavit signed by any such person shall
be considered prima facie evidence that the requirements of
this section with respect to his or her status have been
complied with: Provided further, That any person making a false
affidavit shall be guilty of a felony, and, upon conviction,
shall be fined no more than $4,000 or imprisoned for not more
than 1 year, or both: Provided further, That the above penal
clause shall be in addition to, and not in substitution for,
any other provisions of existing law: Provided further, That
any payment made to any officer or employee contrary to the
provisions of this section shall be recoverable in action by
the Federal Government. This section shall not apply to
citizens of Ireland, Israel, or the Republic of the
Philippines, or to nationals of those countries allied with the
United States in a current defense effort, or to international
broadcasters employed by the United States Information Agency,
or to temporary employment of translators, or to temporary
employment in the field service (not to exceed 60 days) as a
result of emergencies.
Sec. 606. Appropriations available to any department or
agency during the current fiscal year for necessary expenses,
including maintenance or operating expenses, shall also be
available for payment to the General Services Administration
for charges for space and services and those expenses of
renovation and alteration of buildings and facilities which
constitute public improvements performed in accordance with the
Public Buildings Act of 1959 (73 Stat. 749), the Public
Buildings Amendments of 1972 (87 Stat. 216), or other
applicable law.
Sec. 607. In addition to funds provided in this or any
other Act, all Federal agencies are authorized to receive and
use funds resulting from the sale of materials, including
Federal records disposed of pursuant to a records schedule
recovered through recycling or waste prevention programs. Such
funds shall be available until expended for the following
purposes:
(1) Acquisition, waste reduction and prevention,
and recycling programs as described in Executive Order
No. 13101 (September 14, 1998), including any such
programs adopted prior to the effective date of the
Executive order.
(2) Other Federal agency environmental management
programs, including, but not limited to, the
development and implementation of hazardous waste
management and pollution prevention programs.
(3) Other employee programs as authorized by law or
as deemed appropriate by the head of the Federal
agency.
Sec. 608. Funds made available by this or any other Act for
administrative expenses in the current fiscal year of the
corporations and agencies subject to chapter 91 of title 31,
United States Code, shall be available, in addition to objects
for which such funds are otherwise available, for rent in the
District of Columbia; services in accordance with 5 U.S.C.
3109; and the objects specified under this head, all the
provisions of which shall be applicable to the expenditure of
such funds unless otherwise specified in the Act by which they
are made available: Provided, That in the event any functions
budgeted as administrative expenses are subsequently
transferred to or paid from other funds, the limitations on
administrative expenses shall be correspondingly reduced.
Sec. 609. No part of any appropriation for the current
fiscal year contained in this or any other Act shall be paid to
any person for the filling of any position for which he or she
has been nominated after the Senate has voted not to approve
the nomination of said person.
Sec. 610. No part of any appropriation contained in this or
any other Act shall be available for interagency financing of
boards (except Federal Executive Boards), commissions,
councils, committees, or similar groups (whether or not they
are interagency entities) which do not have a prior and
specific statutory approval to receive financial support from
more than one agency or instrumentality.
Sec. 611. Funds made available by this or any other Act to
the Postal Service Fund (39 U.S.C. 2003) shall be available for
employment of guards for all buildings and areas owned or
occupied by the Postal Service and under the charge and control
of the Postal Service, and such guards shall have, with respect
to such property, the powers of special policemen provided by
the first section of the Act of June 1, 1948, as amended (62
Stat. 281; 40 U.S.C. 318), and, as to property owned or
occupied by the Postal Service, the Postmaster General may take
the same actions as the Administrator of General Services may
take under the provisions of sections 2 and 3 of the Act of
June 1, 1948, as amended (62 Stat. 281; 40 U.S.C. 318a and
318b), attaching thereto penal consequences under the authority
and within the limits provided in section 4 of the Act of June
1, 1948, as amended (62 Stat. 281; 40 U.S.C. 318c).
Sec. 612. None of the funds made available pursuant to the
provisions of this Act shall be used to implement, administer,
or enforce any regulation which has been disapproved pursuant
to a resolution of disapproval duly adopted in accordance with
the applicable law of the United States.
Sec. 613. (a) Notwithstanding any other provision of law,
and except as otherwise provided in this section, no part of
any of the funds appropriated for fiscal year 2001, by this or
any other Act, may be used to pay any prevailing rate employee
described in section 5342(a)(2)(A) of title 5, United States
Code--
(1) during the period from the date of expiration
of the limitation imposed by section 613 of the
Treasury and General Government Appropriations Act,
2000, until the normal effective date of the applicable
wage survey adjustment that is to take effect in fiscal
year 2001, in an amount that exceeds the rate payable
for the applicable grade and step of the applicable
wage schedule in accordance with such section 613; and
(2) during the period consisting of the remainder
of fiscal year 2001, in an amount that exceeds, as a
result of a wage survey adjustment, the rate payable
under paragraph (1) by more than the sum of--
(A) the percentage adjustment taking effect
in fiscal year 2001 under section 5303 of title
5, United States Code, in the rates of pay
under the General Schedule; and
(B) the difference between the overall
average percentage of the locality-based
comparability payments taking effect in fiscal
year 2001 under section 5304 of such title
(whether by adjustment or otherwise), and the
overall average percentage of such payments
which was effective in fiscal year 2000 under
such section.
(b) Notwithstanding any other provision of law, no
prevailing rate employee described in subparagraph (B) or (C)
of section 5342(a)(2) of title 5, United States Code, and no
employee covered by section 5348 of such title, may be paid
during the periods for which subsection (a) is in effect at a
rate that exceeds the rates that would be payable under
subsection (a) were subsection (a) applicable to such employee.
(c) For the purposes of this section, the rates payable to
an employee who is covered by this section and who is paid from
a schedule not in existence on September 30, 2000, shall be
determined under regulations prescribed by the Office of
Personnel Management.
(d) Notwithstanding any other provision of law, rates of
premium pay for employees subject to this section may not be
changed from the rates in effect on September 30, 2000, except
to the extent determined by the Office of Personnel Management
to be consistent with the purpose of this section.
(e) This section shall apply with respect to pay for
service performed after September 30, 2000.
(f) For the purpose of administering any provision of law
(including any rule or regulation that provides premium pay,
retirement, life insurance, or any other employee benefit) that
requires any deduction or contribution, or that imposes any
requirement or limitation on the basis of a rate of salary or
basic pay, the rate of salary or basic pay payable after the
application of this section shall be treated as the rate of
salary or basic pay.
(g) Nothing in this section shall be considered to permit
or require the payment to any employee covered by this section
at a rate in excess of the rate that would be payable were this
section not in effect.
(h) The Office of Personnel Management may provide for
exceptions to the limitations imposed by this section if the
Office determines that such exceptions are necessary to ensure
the recruitment or retention of qualified employees.
Sec. 614. During the period in which the head of any
department or agency, or any other officer or civilian employee
of the Government appointed by the President of the United
States, holds office, no funds may be obligated or expended in
excess of $5,000 to furnish or redecorate the office of such
department head, agency head, officer, or employee, or to
purchase furniture or make improvements for any such office,
unless advance notice of such furnishing or redecoration is
expressly approved by the Committees on Appropriations. For the
purposes of this section, the word ``office'' shall include the
entire suite of offices assigned to the individual, as well as
any other space used primarily by the individual or the use of
which is directly controlled by the individual.
Sec. 615. Notwithstanding any other provision of law, no
executive branch agency shall purchase, construct, and/or lease
any additional facilities, except within or contiguous to
existing locations, to be used for the purpose of conducting
Federal law enforcement training without the advance approval
of the Committees on Appropriations, except that the Federal
Law Enforcement Training Center is authorized to obtain the
temporary use of additional facilities by lease, contract, or
other agreement for training which cannot be accommodated in
existing Center facilities.
Sec. 616. Notwithstanding section 1346 of title 31, United
States Code, or section 610 of this Act, funds made available
for fiscal year 2001 by this or any other Act shall be
available for the interagency funding of national security and
emergency preparedness telecommunications initiatives which
benefit multiple Federal departments, agencies, or entities, as
provided by Executive Order No. 12472 (April 3, 1984).
Sec. 617. (a) None of the funds appropriated by this or any
other Act may be obligated or expended by any Federal
department, agency, or other instrumentality for the salaries
or expenses of any employee appointed to a position of a
confidential or policy-determining character excepted from the
competitive service pursuant to section 3302 of title 5, United
States Code, without a certification to the Office of Personnel
Management from the head of the Federal department, agency, or
other instrumentality employing the Schedule C appointee that
the Schedule C position was not created solely or primarily in
order to detail the employee to the White House.
(b) The provisions of this section shall not apply to
Federal employees or members of the armed services detailed to
or from--
(1) the Central Intelligence Agency;
(2) the National Security Agency;
(3) the Defense Intelligence Agency;
(4) the offices within the Department of Defense
for the collection of specialized national foreign
intelligence through reconnaissance programs;
(5) the Bureau of Intelligence and Research of the
Department of State;
(6) any agency, office, or unit of the Army, Navy,
Air Force, and Marine Corps, the Federal Bureau of
Investigation and the Drug Enforcement Administration
of the Department of Justice, the Department of
Transportation, the Department of the Treasury, and the
Department of Energy performing intelligence functions;
and
(7) the Director of Central Intelligence.
Sec. 618. No department, agency, or instrumentality of the
United States receiving appropriated funds under this or any
other Act for fiscal year 2001 shall obligate or expend any
such funds, unless such department, agency, or instrumentality
has in place, and will continue to administer in good faith, a
written policy designed to ensure that all of its workplaces
are free from discrimination and sexual harassment and that all
of its workplaces are not in violation of title VII of the
Civil Rights Act of 1964, as amended, the Age Discrimination in
Employment Act of 1967, and the Rehabilitation Act of 1973.
Sec. 619. None of the funds made available in this Act for
the United States Customs Service may be used to allow the
importation into the United States of any good, ware, article,
or merchandise mined, produced, or manufactured by forced or
indentured child labor, as determined pursuant to section 307
of the Tariff Act of 1930 (19 U.S.C. 1307).
Sec. 620. No part of any appropriation contained in this or
any other Act shall be available for the payment of the salary
of any officer or employee of the Federal Government, who--
(1) prohibits or prevents, or attempts or threatens
to prohibit or prevent, any other officer or employee
of the Federal Government from having any direct oral
or written communication or contact with any Member,
committee, or subcommittee of the Congress in
connection with any matter pertaining to the employment
of such other officer or employee or pertaining to the
department or agency of such other officer or employee
in any way, irrespective of whether such communication
or contact is at the initiative of such other officer
or employee or in response to the request or inquiry of
such Member, committee, or subcommittee; or
(2) removes, suspends from duty without pay,
demotes, reduces in rank, seniority, status, pay, or
performance of efficiency rating, denies promotion to,
relocates, reassigns, transfers, disciplines, or
discriminates in regard to any employment right,
entitlement, or benefit, or any term or condition of
employment of, any other officer or employee of the
Federal Government, or attempts or threatens to commit
any of the foregoing actions with respect to such other
officer or employee, by reason of any communication or
contact of such other officer or employee with any
Member, committee, or subcommittee of the Congress as
described in paragraph (1).
Sec. 621. (a) None of the funds made available in this or
any other Act may be obligated or expended for any employee
training that--
(1) does not meet identified needs for knowledge,
skills, and abilities bearing directly upon the
performance of official duties;
(2) contains elements likely to induce high levels
of emotional response or psychological stress in some
participants;
(3) does not require prior employee notification of
the content and methods to be used in the training and
written end of course evaluation;
(4) contains any methods or content associated with
religious or quasi-religious belief systems or ``new
age'' belief systems as defined in Equal Employment
Opportunity Commission Notice N-915.022, dated
September 2, 1988; or
(5) is offensive to, or designed to change,
participants' personal values or lifestyle outside the
workplace.
(b) Nothing in this section shall prohibit, restrict, or
otherwise preclude an agency from conducting training bearing
directly upon the performance of official duties.
Sec. 622. No funds appropriated in this or any other Act
may be used to implement or enforce the agreements in Standard
Forms 312 and 4414 of the Government or any other nondisclosure
policy, form, or agreement if such policy, form, or agreement
does not contain the following provisions: ``These restrictions
are consistent with and do not supersede, conflict with, or
otherwise alter the employee obligations, rights, or
liabilities created by Executive Order No. 12958; section 7211
of title 5, U.S.C. (governing disclosures to Congress); section
1034 of title 10, United States Code, as amended by the
Military Whistleblower Protection Act (governing disclosure to
Congress by members of the military); section 2302(b)(8) of
title 5, United States Code, as amended by the Whistleblower
Protection Act (governing disclosures of illegality, waste,
fraud, abuse or public health or safety threats); the
Intelligence Identities Protection Act of 1982 (50 U.S.C. 421
et seq.) (governing disclosures that could expose confidential
Government agents); and the statutes which protect against
disclosure that may compromise the national security, including
sections 641, 793, 794, 798, and 952 of title 18, United States
Code, and section 4(b) of the Subversive Activities Act of 1950
(50 U.S.C. 783(b)). The definitions, requirements, obligations,
rights, sanctions, and liabilities created by said Executive
order and listed statutes are incorporated into this agreement
and are controlling.'': Provided, That notwithstanding the
preceding paragraph, a nondisclosure policy form or agreement
that is to be executed by a person connected with the conduct
of an intelligence or intelligence-related activity, other than
an employee or officer of the United States Government, may
contain provisions appropriate to the particular activity for
which such document is to be used. Such form or agreement
shall, at a minimum, require that the person will not disclose
any classified information received in the course of such
activity unless specifically authorized to do so by the United
States Government. Such nondisclosure forms shall also make it
clear that they do not bar disclosures to Congress or to an
authorized official of an executive agency or the Department of
Justice that are essential to reporting a substantial violation
of law.
Sec. 623. No part of any funds appropriated in this or any
other Act shall be used by an agency of the executive branch,
other than for normal and recognized executive-legislative
relationships, for publicity or propaganda purposes, and for
the preparation, distribution or use of any kit, pamphlet,
booklet, publication, radio, television or film presentation
designed to support or defeat legislation pending before the
Congress, except in presentation to the Congress itself.
Sec. 624. (a) In General.--For calendar year 2002 and each
year thereafter, the Director of the Office of Management and
Budget shall prepare and submit to Congress, with the budget
submitted under section 1105 of title 31, United States Code,
an accounting statement and associated report containing--
(1) an estimate of the total annual costs and
benefits (including quantifiable and nonquantifiable
effects) of Federal rules and paperwork, to the extent
feasible--
(A) in the aggregate;
(B) by agency and agency program; and
(C) by major rule;
(2) an analysis of impacts of Federal regulation on
State, local, and tribal government, small business,
wages, and economic growth; and
(3) recommendations for reform.
(b) Notice.--The Director of the Office of Management and
Budget shall provide public notice and an opportunity to
comment on the statement and report under subsection (a) before
the statement and report are submitted to Congress.
(c) Guidelines.--To implement this section, the Director of
the Office of Management and Budget shall issue guidelines to
agencies to standardize--
(1) measures of costs and benefits; and
(2) the format of accounting statements.
(d) Peer Review.--The Director of the Office of Management
and Budget shall provide for independent and external peer
review of the guidelines and each accounting statement and
associated report under this section. Such peer review shall
not be subject to the Federal Advisory Committee Act (5 U.S.C.
App.).
Sec. 625. None of the funds appropriated by this or any
other Act may be used by an agency to provide a Federal
employee's home address to any labor organization except when
the employee has authorized such disclosure or when such
disclosure has been ordered by a court of competent
jurisdiction.
Sec. 626. Hereafter, the Secretary of the Treasury is
authorized to establish scientific certification standards for
explosives detection canines, and shall provide, on a
reimbursable basis, for the certification of explosives
detection canines employed by Federal agencies, or other
agencies providing explosives detection services at airports in
the United States.
Sec. 627. None of the funds made available in this Act or
any other Act may be used to provide any non-public information
such as mailing or telephone lists to any person or any
organization outside of the Federal Government without the
approval of the Committees on Appropriations.
Sec. 628. No part of any appropriation contained in this or
any other Act shall be used for publicity or propaganda
purposes within the United States not heretofore authorized by
the Congress.
Sec. 629. (a) In this section the term ``agency''--
(1) means an Executive agency as defined under
section 105 of title 5, United States Code;
(2) includes a military department as defined under
section 102 of such title, the Postal Service, and the
Postal Rate Commission; and
(3) shall not include the General Accounting
Office.
(b) Unless authorized in accordance with law or regulations
to use such time for other purposes, an employee of an agency
shall use official time in an honest effort to perform official
duties. An employee not under a leave system, including a
Presidential appointee exempted under section 6301(2) of title
5, United States Code, has an obligation to expend an honest
effort and a reasonable proportion of such employee's time in
the performance of official duties.
Sec. 630. (a) None of the funds appropriated by this Act
may be used to enter into or renew a contract which includes a
provision providing prescription drug coverage, except where
the contract also includes a provision for contraceptive
coverage.
(b) Nothing in this section shall apply to a contract
with--
(1) any of the following religious plans:
(A) Personal Care's HMO;
(B) Care Choices;
(C) OSF Health Plans, Inc.; and
(2) any existing or future plan, if the carrier for
the plan objects to such coverage on the basis of
religious beliefs.
(c) In implementing this section, any plan that enters into
or renews a contract under this section may not subject any
individual to discrimination on the basis that the individual
refuses to prescribe or otherwise provide for contraceptives
because such activities would be contrary to the individual's
religious beliefs or moral convictions.
(d) Nothing in this section shall be construed to require
coverage of abortion or abortion-related services.
Sec. 631. Notwithstanding 31 U.S.C. 1346 and section 610 of
this Act, funds made available for fiscal year 2001 by this or
any other Act to any department or agency, which is a member of
the Joint Financial Management Improvement Program (JFMIP),
shall be available to finance an appropriate share of JFMIP
administrative costs, as determined by the JFMIP, but not to
exceed a total of $800,000 including the salary of the
Executive Director and staff support.
Sec. 632. Notwithstanding 31 U.S.C. 1346 and section 610 of
this Act, the head of each Executive department and agency is
hereby authorized to transfer to the ``Policy and Operations''
account, General Services Administration, with the approval of
the Director of the Office of Management and Budget, funds made
available for fiscal year 2001 by this or any other Act,
including rebates from charge card and other contracts. These
funds shall be administered by the Administrator of General
Services to support Government-wide financial, information
technology, procurement, and other management innovations,
initiatives, and activities, as approved by the Director of the
Office of Management and Budget, in consultation with the
appropriate interagency groups designated by the Director
(including the Chief Financial Officers Council and the Joint
Financial Management Improvement Program for financial
management initiatives, the Chief Information Officers Council
for information technology initiatives, and the Procurement
Executives Council for procurement initiatives). The total
funds transferred shall not exceed $17,000,000. Such transfers
may only be made 15 days following notification of the
Committees on Appropriations by the Director of the Office of
Management and Budget.
Sec. 633. (a) In General.--In accordance with regulations
promulgated by the Office of Personnel Management, an Executive
agency which provides or proposes to provide child care
services for Federal employees may use appropriated funds
(otherwise available to such agency for salaries and expenses)
to provide child care, in a Federal or leased facility, or
through contract, for civilian employees of such agency.
(b) Affordability.--Amounts so provided with respect to any
such facility or contractor shall be applied to improve the
affordability of child care for lower income Federal employees
using or seeking to use the child care services offered by such
facility or contractor.
(c) Definition.--For purposes of this section, the term
``Executive agency'' has the meaning given such term by section
105 of title 5, United States Code, but does not include the
General Accounting Office.
(d) Notification.--None of the funds made available in this
or any other Act may be used to implement the provisions of
this section absent advance notification to the Committees on
Appropriations.
Sec. 634. Notwithstanding any other provision of law, a
woman may breastfeed her child at any location in a Federal
building or on Federal property, if the woman and her child are
otherwise authorized to be present at the location.
Sec. 635. Nothwithstanding section 1346 of title 31, United
States Code, or section 610 of this Act, funds made available
for fiscal year 2001 by this or any other Act shall be
available for the interagency funding of specific projects,
workshops, studies, and similar efforts to carry out the
purposes of the National Science and Technology Council
(authorized by Executive Order No. 12881), which benefit
multiple Federal departments, agencies, or entities: Provided,
That the Office of Management and Budget shall provide a report
describing the budget of and resources connected with the
National Science and Technology Council to the Committees on
Appropriations, the House Committee on Science; and the Senate
Committee on Commerce, Science, and Transportation 90 days
after enactment of this Act.
Sec. 636. Retirement Provisions Relating to Certain Members
of the Police Force of the Metropolitan Washington Airports
Authority.--(a) Qualified MWAA Police Officer Defined.--For
purposes of this section, the term ``qualified MWAA police
officer'' means any individual who, as of the date of the
enactment of this Act--
(1) is employed as a member of the police force of
the Metropolitan Washington Airports Authority
(hereinafter in this section referred to as an ``MWAA
police officer''); and
(2) is subject to the Civil Service Retirement
System or the Federal Employees' Retirement System by
virtue of section 49107(b) of title 49, United States
Code.
(b) Eligibility To Be Treated as a Law Enforcement Officer
for Retirement Purposes.--
(1) In general.--Any qualified MWAA police officer
may, by written election submitted in accordance with
applicable requirements under subsection (c), elect to
be treated as a law enforcement officer (within the
meaning of section 8331 or 8401 of title 5, United
States Code, as applicable), and to have all prior
service described in paragraph (2) similarly treated.
(2) Prior service described.--The service described
in this paragraph is all service which an individual
performed, prior to the effective date of such
individual's election under this section, as--
(A) an MWAA police officer; or
(B) a member of the police force of the
Federal Aviation Administration (hereinafter in
this section referred to as an ``FAA police
officer'').
(c) Regulations.--The Office of Personnel Management shall
prescribe any regulations necessary to carry out this section,
including provisions relating to the time, form, and manner in
which any election under this section shall be made. Such an
election shall not be effective unless--
(1) it is made before the employee separates from
service with the Metropolitan Washington Airports
Authority, but in no event later than 1 year after the
regulations under this subsection take effect; and
(2) it is accompanied by payment of an amount equal
to, with respect to all prior service of such employee
which is described in subsection (b)(2)--
(A) the employee deductions that would have
been required for such service under chapter 83
or 84 of title 5, U.S.C. (as the case may be)
if such election had then been in effect, minus
(B) the total employee deductions and
contributions under such chapter 83 and 84 (as
applicable) that were actually made for such
service,
taking into account only amounts required to be
credited to the Civil Service Retirement and Disability
Fund. Any amount under paragraph (2) shall be computed
with interest, in accordance with section 8334(e) of
such title 5.
(d) Government Contributions.--Whenever a payment under
subsection (c)(2) is made by an individual with respect to such
individual's prior service (as described in subsection (b)(2)),
the Metropolitan Washington Airports Authority shall pay into
the Civil Service Retirement and Disability Fund any additional
contributions for which it would have been liable, with respect
to such service, if such individual's election under this
section had then been in effect (and, to the extent of any
prior FAA police officer service, as if it had then been the
employing agency). Any amount under this subsection shall be
computed with interest, in accordance with section 8334(e) of
title 5, United States Code.
(e) Certifications.--The Office of Personnel Management
shall accept, for the purpose of this section, the
certification of--
(1) the Metropolitan Washington Airports Authority
(or its designee) concerning any service performed by
an individual as an MWAA police officer; and
(2) the Federal Aviation Administration (or its
designee) concerning any service performed by an
individual as an FAA police officer.
(f) Reimbursement To Compensate for Unfunded Liability.--
(1) In general.--The Metropolitan Washington
Airports Authority shall pay into the Civil Service
Retirement and Disability Fund an amount (as determined
by the Director of the Office of Personnel Management)
equal to the amount necessary to reimburse the Fund for
any estimated increase in the unfunded liability of the
Fund (to the extent the Civil Service Retirement System
is involved), and for any estimated increase in the
supplemental liability of the Fund (to the extent the
Federal Employees' Retirement System is involved),
resulting from the enactment of this section.
(2) Payment method.--The Metropolitan Washington
Airports Authority shall pay the amount so determined
in five equal annual installments, with interest (which
shall be computed at the rate used in the most recent
valuation of the Federal Employees' Retirement System).
Sec. 637. (a) For purposes of this section--
(1) the term ``comparability payment'' refers to a
locality-based comparability payment under section 5304
of title 5, United States Code;
(2) the term ``President's pay agent'' refers to
the pay agent described in section 5302(4) of such
title; and
(3) the term ``pay locality'' has the meaning given
such term by section 5302(5) of such title.
(b) Notwithstanding any provision of section 5304 of title
5, United States Code, for purposes of determining appropriate
pay localities and making comparability payment
recommendations, the President's pay agent may, in accordance
with succeeding provisions of this section, make comparisons of
General Schedule pay and non-Federal pay within any of the
metropolitan statistical areas described in subsection (d)(3),
using--
(1) data from surveys of the Bureau of Labor
Statistics;
(2) salary data sets obtained under subsection (c);
or
(3) any combination thereof.
(c) To the extent necessary in order to carry out this
section, the President's pay agent may obtain any salary data
sets (referred to in subsection (b)) from any organization or
entity that regularly compiles similar data for businesses in
the private sector.
(d)(1)(A) This paragraph applies with respect to the five
metropolitan statistical areas described in paragraph (3)
which--
(i) have the highest levels of nonfarm employment
(as determined based on data made available by the
Bureau of Labor Statistics); and
(ii) as of the date of the enactment of this Act,
have not previously been surveyed by the Bureau of
Labor Statistics (as discrete pay localities) for
purposes of section 5304 of title 5, United States
Code.
(B) The President's pay agent, based on such comparisons
under subsection (b) as the pay agent considers appropriate,
shall: (i) determine whether any of the five areas under
subparagraph (A) warrants designation as a discrete pay
locality; and (ii) if so, make recommendations as to what level
of comparability payments would be appropriate during 2002 for
each area so determined.
(C)(i) Any recommendations under subparagraph (B)(ii) shall
be included--
(I) in the pay agent's report under section
5304(d)(1) of title 5, United States Code, submitted
for purposes of comparability payments scheduled to
become payable in 2002; or
(II) if compliance with subclause (I) is
impracticable, in a supplementary report which the pay
agent shall submit to the President and the Congress no
later than March 1, 2001.
(ii) In the event that the recommendations are completed in
time to be included in the report described in clause (i)(I), a
copy of those recommendations shall be transmitted by the pay
agent to the Congress contemporaneous with their submission to
the President.
(D) Each of the five areas under subparagraph (A) that so
warrants, as determined by the President's pay agent, shall be
designated as a discrete pay locality under section 5304 of
title 5, United States Code, in time for it to be treated as
such for purposes of comparability payments becoming payable in
2002.
(2) The President's pay agent may, at any time after the
180th day following the submission of the report under
subsection (f), make any initial or further determinations or
recommendations under this section, based on any pay
comparisons under subsection (b), with respect to any area
described in paragraph (3).
(3) An area described in this paragraph is any metropolitan
statistical area within the continental United States that (as
determined based on data made available by the Bureau of Labor
Statistics and the Office of Personnel Management,
respectively) has a high level of nonfarm employment and at
least 2,500 General Schedule employees whose post of duty is
within such area.
(e)(1) The authority under this section to make pay
comparisons and to make any determinations or recommendations
based on such comparisons shall be available to the President's
pay agent only for purposes of comparability payments becoming
payable on or after January 1, 2002, and before January 1,
2007, and only with respect to areas described in subsection
(d)(3).
(2) Any comparisons and recommendations so made shall, if
included in the pay agent's report under section 5304(d)(1) of
title 5, United States Code, for any year (or the pay agent's
supplementary report, in accordance with subsection
(d)(1)(C)(i)(II)), be considered and acted on as the pay
agent's comparisons and recommendations under such section
5304(d)(1) for the area and the year involved.
(f)(1) No later than March 1, 2001, the President's pay
agent shall submit to the Committee on Government Reform of the
House of Representatives, the Committee on Governmental Affairs
of the Senate, and the Committees on Appropriations of the
House of Representatives and of the Senate, a report on the use
of pay comparison data, as described in subsection (b)(2) or
(3) (as appropriate), for purposes of comparability payments.
(2) The report shall include the cost of obtaining such
data, the rationale underlying the decisions reached based on
such data, and the relative advantages and disadvantages of
using such data (including whether the effort involved in
analyzing and integrating such data is commensurate with the
benefits derived from their use). The report may include
specific recommendations regarding the continued use of such
data.
(g)(1) No later than May 1, 2001, the President's pay agent
shall prepare and submit to the committees specified in
subsection (f)(1) a report relating to the ongoing efforts of
the Office of Personnel Management, the Office of Management
and Budget, and the Bureau of Labor Statistics to revise the
methodology currently being used by the Bureau of Labor
Statistics in performing its surveys under section 5304 of
title 5, United States Code.
(2) The report shall include a detailed accounting of any
concerns the pay agent may have regarding the current
methodology, the specific projects the pay agent has directed
any of those agencies to undertake in order to address those
concerns, and a time line for the anticipated completion of
those projects and for implementation of the revised
methodology.
(3) The report shall also include recommendations as to how
those ongoing efforts might be expedited, including any
additional resources which, in the opinion of the pay agent,
are needed in order to expedite completion of the activities
described in the preceding provisions of this subsection, and
the reasons why those additional resources are needed.
Sec. 638. Federal Funds Identified. Any request for
proposals, solicitation, grant application, form, notification,
press release, or other publications involving the distribution
of Federal funds shall indicate the agency providing the funds
and the amount provided. This provision shall apply to direct
payments, formula funds, and grants received by a State
receiving Federal funds.
SEC. 639. MANDATORY REMOVAL FROM EMPLOYMENT OF FEDERAL LAW ENFORCEMENT
OFFICERS CONVICTED OF FELONIES.
(a) In General.--Chapter 73 of title 5, United States
Code, is amended by adding after subchapter VI the following:
``SUBCHAPTER VII--MANDATORY REMOVAL FROM EMPLOYMENT OF CONVICTED LAW
ENFORCEMENT OFFICERS
``Sec. 7371. Mandatory removal from employment of law enforcement
officers convicted of felonies
``(a) In this section, the term--
``(1) `conviction notice date' means the date on
which an agency that employs a law enforcement officer
has notice that the officer has been convicted of a
felony that is entered by a Federal or State court,
regardless of whether that conviction is appealed or is
subject to appeal; and
``(2) `law enforcement officer' has the meaning
given that term under section 8331(20) or 8401(17).
``(b) Any law enforcement officer who is convicted of a
felony shall be removed from employment as a law enforcement
officer on the last day of the first applicable pay period
following the conviction notice date.
``(c)(1) This section does not prohibit the removal of an
individual from employment as a law enforcement officer before
a conviction notice date if the removal is properly effected
other than under this section.
``(2) This section does not prohibit the employment of
any individual in any position other than that of a law
enforcement officer.
``(d) If the conviction is overturned on appeal, the
removal shall be set aside retroactively to the date on which
the removal occurred, with back pay under section 5596 for the
period during which the removal was in effect, unless the
removal was properly effected other than under this section.
``(e)(1) If removal is required under this section, the
agency shall deliver written notice to the employee as soon as
practicable, and not later than 5 calendar days after the
conviction notice date. The notice shall include a description
of the specific reasons for the removal, the date of removal,
and the procedures made applicable under paragraph (2).
``(2) The procedures under section 7513 (b) (2), (3), and
(4), (c), (d), and (e) shall apply to any removal under this
section. The employee may use the procedures to contest or
appeal a removal, but only with respect to whether--
``(A) the employee is a law enforcement officer;
``(B) the employee was convicted of a felony; or
``(C) the conviction was overturned on appeal.
``(3) A removal required under this section shall occur
on the date specified in subsection (b) regardless of whether
the notice required under paragraph (1) of this subsection and
the procedures made applicable under paragraph (2) of this
subsection have been provided or completed by that date.''.
(b) Technical and Conforming Amendment.--The table of
sections for chapter 73 of title 5, United States Code, is
amended by adding after the item relating to section 7363 the
following:
``SUBCHAPTER VII--MANDATORY REMOVAL FROM EMPLOYMENT OF LAW ENFORCEMENT
OFFICERS
``7371. Mandatory removal from employment of law enforcement officers
convicted of felonies.''.
(c) Effective Date.--The amendments made by this section
shall take effect 30 days after the date of enactment of this
Act and shall apply to any conviction of a felony entered by a
Federal or State court on or after that date.
Sec. 640. Section 504 of the Department of Transportation
and Related Agencies Appropriations Act, 2001 (as enacted into
law by Public Law 106-346) is repealed.
Sec. 641. (a) Section 5545b(d) of title 5, United States
Code, is amended by inserting at the end the following new
paragraph:
``(4) Notwithstanding section 8114(e)(1), overtime
pay for a firefighter subject to this section for hours
in a regular tour of duty shall be included in any
computation of pay under section 8114.''.
(b) The amendment in subsection (a) shall be effective as
if it had been enacted as part of the Federal Firefighters
Overtime Pay Reform Act of 1998 (112 Stat. 2681-519).
Sec. 642. Section 6323(a) of title 5, United States Code,
is amended by adding at the end the following:
``(3) The minimum charge for leave under this
subsection is one hour, and additional charges are in
multiples thereof.''.
Sec. 643. Section 616 of the Treasury, Postal Service and
General Government Appropriations Act, 1988, as contained in
the Act of December 22, 1987 (40 U.S.C. 490b), is amended by
adding at the end the following:
``(e)(1) All existing and newly hired workers in any child
care center located in an executive facility shall undergo a
criminal history background check as defined in section 231 of
the Crime Control Act of 1990 (42 U.S.C. 13041).
``(2) For purposes of this subsection, the term `executive
facility' means a facility that is owned or leased by an office
or entity within the executive branch of the Government
(including one that is owned or leased by the General Services
Administration on behalf of an office or entity within the
judicial branch of the Government).
``(3) Nothing in this subsection shall be considered to
apply with respect to a facility owned by or leased on behalf
of an office or entity within the legislative branch of the
Government.''.
Sec. 644. Section 501 of the Department of Transportation
and Related Agencies Appropriations Act, 2001 (as enacted into
law by Public Law 106-346) is amended by striking subsection
(c) and by redesignating subsection (d) as subsection (c).
Sec. 645. (a)(1) Title 5, United States Code, is amended by
inserting after section 5372a the following:
``Sec. 5372b. Administrative appeals judges
``(a) For the purpose of this section--
``(1) the term `administrative appeals judge
position' means a position the duties of which
primarily involve reviewing decisions of administrative
law judges appointed under section 3105; and
``(2) the term `agency' means an Executive agency,
as defined by section 105, but does not include the
General Accounting Office.
``(b) Subject to such regulations as the Office of
Personnel Management may prescribe, the head of the agency
concerned shall fix the rate of basic pay for each
administrative appeals judge position within such agency which
is not classified above GS-15 pursuant to section 5108.
``(c) A rate of basic pay fixed under this section shall
be--
``(1) not less than the minimum rate of basic pay
for level AL-3 under section 5372; and
``(2) not greater than the maximum rate of basic
pay for level AL-3 under section 5372.''.
(2) Section 7323(b)(2)(B)(ii) of title 5, United States
Code, is amended by striking ``or 5372a'' and inserting
``5372a, or 5372b''.
(3) The table of sections for chapter 53 of title 5, United
States Code, is amended by inserting after the item relating to
section 5372a the following:
``5372b. Administrative appeals judges.''.
(b) The amendment made by subsection (a)(1) shall apply
with respect to pay for service performed on or after the first
day of the first applicable pay period beginning on or after--
(1) the 120th day after the date of the enactment
of this Act; or
(2) if earlier, the effective date of regulations
prescribed by the Office of Personnel Management to
carry out such amendment.
Sec. 646. Not later than 60 days after the date of
enactment of this Act, the Inspector General of each department
or agency shall submit to Congress a report that discloses any
activity of the applicable department or agency relating to--
(1) the collection or review of singular data, or
the creation of aggregate lists that include personally
identifiable information, about individuals who access
any Internet site of the department or agency; and
(2) entering into agreements with third parties,
including other government agencies, to collect,
review, or obtain aggregate lists or singular data
containing personally identifiable information relating
to any individual's access or viewing habits for
governmental and nongovernmental Internet sites.
This Act may be cited as the ``Treasury and General
Government Appropriations Act, 2001''.
TREASURY DEPARTMENT, THE UNITED STATES POSTAL SERVICE, THE EXECUTIVE
OFFICE OF THE PRESIDENT, AND CERTAIN INDEPENDENT AGENCIES
APPROPRIATIONS
Following is explanatory language on H.R. 5658, as
introduced on December 14, 2000.
The conferees on H.R. 4577 agree with the matter included
in H.R. 5658 and enacted in this conference report by reference
and the following description. This bill was developed through
negotiations by subcommittee members of the Treasury, Postal
Service, General Government Appropriations Subcommittees of the
House and Senate on the differences in the House passed and
Senate reported versions of H.R. 4871. References in the
following description to the ``conference agreement'' mean the
matter included in the introduced bill enacted by this
conference report. References to the House bill mean the House
passed version of H.R. 4871. References to the Senate reported
bill or Senate reported amendment mean the Senate reported
version of H.R. 4871.
H.R. 4871, the House passed Treasury, Postal Service, and
General Government Appropriation Bill, 2001, and S. 2900, the
Senate reported Treasury and General Government Appropriation
Bill, 2001, were the basis for development of the introduced
bill. The following statement is an explanation of the action
agreed upon in resolving the differences of those two bills and
recommended in the accompanying conference report.
The conference agreement on the Treasury and General
Government Appropriations Act, 2001, incorporates some of the
language and allocations set forth in House Report 106-756 and
in the Senate Report to accompany S. 2900. The language in
these reports should be complied with unless specifically
addressed in the accompanying statement of managers. Throughout
the accompanying explanatory statement, the managers refer to
the Committee and the Committees on Appropriations. Unless
otherwise noted, in both instances, the managers are referring
to the House Subcommittee on Treasury, Postal Service, and
General Government and the Senate Subcommittee on Treasury and
General Government.
Reprogramming and Transfer of Funds Guidelines
The conference agreement includes the following
reprogramming guidelines which shall be complied with by all
agencies funded by the Treasury and General Government
Appropriations Act, 2001:
1. Except under extraordinary and emergency
situations, the Committees on Appropriations will not
consider requests for a reprogramming or a transfer of
funds, or use of unobligated balances, which are
submitted after the close of the third quarter of the
fiscal year, June 30;
2. Clearly stated and detailed documentation
presenting justification for the reprogramming,
transfer, or use of unobligated balances shall
accompany each request;
3. For agencies, departments, or offices receiving
appropriations in excess of $20,000,000, a
reprogramming shall be submitted if the amount to be
shifted to or from any object class, budget activity,
program line item, or program activity involved is in
excess of $500,000 or 10 percent, whichever is greater,
of the object class, budget activity, program line
item, or program activity;
4. For agencies, departments, or offices receiving
appropriations less than $20,000,000, a reprogramming
shall be submitted if the amount to be shifted to or
from any object class, budget activity, program line
item, or program activity involved is in excess of
$50,000, or 10 percent, whichever is greater, of the
object class, budget activity, program line item, or
program activity;
5. For any action where the cumulative effect of
below threshold reprogramming actions, or past
reprogramming and/or transfer actions added to the
request, would exceed the dollar threshold mentioned
above, a reprogramming shall be submitted;
6. For any action which would result in a major
change to the program or item which is different than
that presented to and approved by either of the
Committees, or the Congress, a reprogramming shall be
submitted;
7. For any action where funds earmarked by either
of the Committees for a specific activity are proposed
to be used for a different activity, a reprogramming
shall be submitted; and,
8. For any action where funds earmarked by either
of the Committees for a specific activity are in excess
of the project or activity requirement, and are
proposed to be used for a different activity, a
reprogramming shall be submitted.
Additionally, each request shall include a declaration
that, as of the date of the request, none of the funds included
in the request have been obligated, and none will be obligated,
until the Committees on Appropriations have approved the
request.
TITLE I--DEPARTMENT OF THE TREASURY
Departmental Offices
SALARIES AND EXPENSES
The conferees agree to provide $156,315,000 instead of
$149,437,000 as proposed by the House and $149,610,000 as
proposed by the Senate. Included in this amount is $7,332,000
to maintain current levels; $3,813,000 as a transfer from the
Department-Wide Systems and Capital Investments Programs
(SCIP); $3,027,000 to annualize the costs of the fiscal year
2000 drug supplemental for the Office of Foreign Asset Control
(OFAC); $854,000 to annualize the costs of filling 6 positions
with the Office of International Affairs during fiscal year
2000; $2,899,000 for OFAC program initiatives; $504,000 and no
more than 3 positions for increased management and coordination
by the Office of Enforcement of the Department's involvement in
the National Money Laundering Strategy; $2,900,000 for grants
to state and local law enforcement groups to help combat money
laundering; $502,000 for reimbursements to Morris County, New
Jersey, for law enforcement agencies; $150,000 for
reimbursements to Arlington County, Virginia, law enforcement
agencies; and not to exceed $300,000 to reimburse the State
Police, the police departments of the towns of New Castle,
North Castle, Mount Kisco, Bedford, and the Department of
Public Safety of Westchester County of the State of New York.
RECEPTION AND REPRESENTATION ALLOWANCES
The conferees are concerned to learn that, over the past
several years, the Office of the Under Secretary of Enforcement
has required the various Treasury law enforcement bureaus to
transfer a portion of their reception and representation funds
to the Office of the Under Secretary. Although there may be
certain functions appropriate to the involvement of all the
Treasury law enforcement bureaus, the conferees remind the
Under Secretary that expenses for these events are accommodated
within the amounts authorized for Departmental Offices
reception and representation allowances. In the event that the
Under Secretary believes that Departmental Offices
representation allowances are insufficient to meet current
needs, the Under Secretary should submit a justification for
increases to this allowance to the Committees for its
consideration. The conferees also direct the Under Secretary to
submit for advance approval any requirement to use reception
and representation allowance funds from any appropriation
account other than Departmental Offices, Salaries and Expenses.
ALTERNATIVE FUELS
The conferees urge the Treasury Department to use
ethanol, biodiesel, and other alternative fuels to the maximum
extent practicable in meeting the Department's fuel needs.
Department-Wide Systems and Capital Investments Programs
The conferees agree to provide $47,287,000 instead of
$41,787,000 as proposed by the House and $37,279,000 as
proposed by the Senate. Included in this amount is $14,779,000
for communications infrastructure (including radios and related
equipment) associated with Departmental law enforcement
responsibilities for the Salt Lake City Winter Olympics;
$2,000,000 for Critical Infrastructure Protection; and
$3,500,000 for Public Key Infrastructure.
Office of Inspector General
SALARIES AND EXPENSES
The conferees agree to provide $32,899,000 as proposed by
the Senate instead of $31,940,000 as proposed by the House.
Treasury Inspector General for Tax Administration
SALARIES AND EXPENSES
The conferees agree to provide $118,427,000 as proposed
by Senate instead of $115,477,000 as proposed by the House.
Treasury Building and Annex Repair and Restoration
The conferees agree to provide $31,000,000 as proposed by
the House instead of $22,700,000 as proposed by the Senate.
Expanded Access to Financial Services
The conferees agree to provide $2,000,000 as proposed by
the House instead of $400,000 as proposed by the Senate. The
conferees agree to $300,000 to assist one or more locally-owned
Alaska banking institutions and community partners and $100,000
to begin a pilot program with the Metropolitan Family Services'
Family Economic Development program.
Financial Crimes Enforcement Network
SALARIES AND EXPENSES
The conferees agree to provide $37,576,000 as proposed by
the Senate instead of $34,694,000 as proposed by the House.
Counterterrorism Fund
The conferees agree to provide $55,000,000 for the
Counterterrorism Fund as proposed by the Senate instead of no
appropriation as proposed by the House. Funds are provided as a
contingent emergency.
Treasury Forfeiture Fund
The conferees are aware that the $42,500,000 assumed to
be available by the Administration in the Super Surplus to the
Treasury Forfeiture Fund will not be available in fiscal year
2001. Activities proposed for funding through this account have
been included in either Salaries and Expenses or Construction
related accounts, as appropriate, for the individual law
enforcement bureaus.
Federal Law Enforcement Training Center
SALARIES AND EXPENSES
The conferees agree to provide $94,483,000 instead of
$93,483,000 as proposed by the House and $93,198,000 as
proposed by the Senate. Included in this amount is $1,000,000
for the rural law enforcement education project.
ACQUISITION, CONSTRUCTION, IMPROVEMENTS, AND RELATED EXPENSES
The conferees agree to provide $29,205,000 as proposed by
the Senate instead of $17,331,000 as proposed by the House.
Interagency Law Enforcement
INTERAGENCY CRIME AND DRUG ENFORCEMENT
The conferees agree to provide $103,476,000 as proposed
by the House instead of $90,976,000 as proposed by the Senate.
Financial Management Service
SALARIES AND EXPENSES
The conferees agree to provide $206,851,000 instead of
$198,736,000 as proposed by the House and $202,851,000 as
proposed by the Senate. The conferees fully fund the
President's request. In addition, the conferees include
$4,000,000 to partially fund a budget shortfall. The conferees
fully concur with the language on this topic contained under
Departmental Offices in the Senate Report accompanying S. 2900.
Bureau of Alcohol, Tobacco and Firearms
SALARIES AND EXPENSES
The conferees agree to provide $768,695,000 instead of
$731,325,000 as proposed by the House and $724,937,000 as
proposed by the Senate. The conferees fully fund the
President's request with the exception of $5,521,000 for
tobacco compliance initiatives and $4,148,000 for the proposed
Joint Terrorism Task Forces.
GANG RESISTANCE EDUCATION AND TRAINING GRANTS
The conferees agree to provide $13,000,000 for grants to
local law enforcement organizations as proposed by the Senate.
United States Customs Service
SALARIES AND EXPENSES
The conferees agree to provide $1,863,765,000 instead of
$1,822,365,000 as proposed by the House and $1,804,687,000 as
proposed by the Senate. Included in this amount is $13,700,000
for the second year of funding of the fiscal year 2000
Southwest Border initiative; $10,000,000 for security
enhancements along the northern border; $11,000,000 for vehicle
replacement; $3,700,000 for money laundering; $9,500,000 for
drug investigations; and an additional $5,000,000 to combat
forced child labor. Additionally, the conferees include
$500,000 for Customs' ongoing research on trade of agricultural
commodities and products at a Northern Plains university with
an agricultural economics program and support the use of
$2,500,000 for the acquisition of Passive Radar Detection
Technology.
TARGETED RESOURCES FOR THE SOUTHWEST BORDER
The conferees provide $13,700,000 to be combined with the
$11,300,000 in fiscal year 2000 Super Surplus of the Treasury
Forfeiture Fund to hire new inspectors, agents, or acquire new
detection technology for use along the Southwest border for a
total of $25,000,000. The House conferees do not concur with
the Senate Report language on Targeted Resources for the
Southwest Border.
PORTS OF ENTRY
The conferees have received numerous requests to
establish, expand, or preserve Customs presence at various
ports, as well as, to designate new ports of entry. Customs has
made a commitment to put in place a staffing resource
allocation model to permit a more transparent and consistent
basis for making such decisions, but the delay in doing so has
caused concern about the ability of Customs to fulfill its
responsibilities. The conferees therefore direct the Treasury
Department and Customs to complete this model and to report to
the Committees on Appropriations not later than November 1,
2000 on its implementation. In relation to this, the conferees
urge the Customs Service to give full consideration to the
needs of the following areas for increases or improvements in
Customs services: Fargo, North Dakota; Highgate Springs,
Vermont; Charleston, South Carolina; Charleston, West Virginia;
Honolulu, Hawaii; Great Falls, Sweetgrass-Coutts, and Missoula,
Montana; Tri-Cities Regional Airport, Tennessee; Dulles
International Airport, Virginia; Louisville International
Airport, Kentucky; Miami International Airport, Florida;
Pittsburg, New Hampshire; San Antonio, Texas; and multiple port
areas in Arizona, New Mexico, and Florida.
OPERATION, MAINTENANCE AND PROCUREMENT, AIR AND MARINE INTERDICTION
PROGRAMS
The conferees agree to provide $133,228,000 instead of
$125,778,000 as proposed by the House and $128,228,000 as
proposed by the Senate. Included in this amount is $5,000,000
for source zone deployment of P-3's; $2,174,000 to maintain
current levels; $7,450,000 for flight safety and enhancements;
and $9,916,000 for costs associated with the delivery of new P-
3's.
AUTOMATION MODERNIZATION
The conferees agree to provide $258,400,000 instead of
$233,400,000 as proposed by the House and $128,400,000 as
proposed by the Senate. Included in this amount is $5,400,000
for the International Trade Data System, as well as not less
than $130,000,000 to begin work on the Automated Commercial
Environment (ACE).
Bureau of the Public Debt
ADMINISTERING THE PUBLIC DEBT
The conferees agree to provide $182,901,000 as proposed
by the House and Senate. The conferees agree to include a
provision as proposed by the Senate with respect to
administrative costs associated with certain trust funds.
Internal Revenue Service
PROCESSING, ASSISTANCE, AND MANAGEMENT
The conferees agree to provide $3,567,001,000 instead of
$3,487,232,000 as proposed by the House and $3,506,939,000 as
proposed by the Senate. The conferees fully fund the
President's request with respect to adjustments required to
maintain current levels of service, organizational
modernization, and operational contract support. The funding
level also reflects an increase of $60,000,000 above the fiscal
year 2000 level as a result of an inter-appropriation transfer
during fiscal year 2000. The conferees have not provided any
funding for the Staffing Tax Administration for Balance and
Equity (STABLE) initiative, a proposed fiscal year 2001 inter-
appropriation transfer, or the electronic tax administration
marketing initiative.
IRS DATA FOR ECONOMIC MODELING
The conferees are aware of the critical importance and
usefulness of IRS data to economic modeling, such as the
modeling used to project the economic impact of proposed Social
Security legislation. The conferees direct IRS to continue
working closely with the Bureau of the Census to ensure the
appropriate availability of these data in a timely manner to
groups such as the Congressional Budget Office (CBO) to
facilitate the operation of CBO's long-term models of Social
Security and Medicare. CBO requires records from the IRS'
Statistics Of Income that are matched with survey data from the
Bureau of the Census (involving the Current Population Survey
and the Survey of Income and Program Participation) and records
of the Social Security Administration with all record
identifiers removed.
TAX LAW ENFORCEMENT
The conferees agree to provide $3,382,402,000 instead of
$3,332,676,000 as proposed by the House and $3,378,040,000 as
proposed by the Senate. The conferees fully fund the
President's request with respect to adjustments required to
maintain current levels of service and operational contract
support. The funding level also reflects a decrease of
$100,000,000 below the fiscal year 2000 level as a result of an
inter-appropriation transfer during fiscal year 2000 and a
decrease of $666,000 for a transfer to the Treasury Inspector
General for Tax Administration, as requested. The conferees
have not provided any funding for the Staffing Tax
Administration for Balance and Equity (STABLE) initiative or
for the Counterterrorism Initiative, nor have they agreed to a
proposed transfer of $41,000,000 out of the account as an
inter-appropriation transfer during fiscal year 2001.
INFORMATION SYSTEMS
The conferees agree to provide $1,545,090,000 instead of
$1,488,090,000 as proposed by the House and $1,505,090,000 as
proposed by the Senate. The conferees fully fund the
President's request with the exception of the Staffing Tax
Administration for Balance and Equity (STABLE) initiative and
$3,000,000 for an inter-appropriation transfer proposed for
fiscal year 2001.
ADMINISTRATIVE PROVISIONS--INTERNAL REVENUE SERVICE
Section 101. The conferees agree to continue a provision
which allows the transfer of 5 percent of any appropriation
made available to the IRS to any other IRS appropriation
subject to Congressional approval.
Section 102. The conferees agree to continue a provision
which requires the IRS to maintain a training program in
taxpayers' rights, dealing courteously with taxpayers, and
cross cultural relations.
Section 103. The conferees agree to continue a provision
which requires the IRS to institute and enforce policies and
practices that will safeguard the confidentially of taxpayer
information.
Section 104. The conferees agree to continue a provision
proposed by the Senate with respect to the IRS 1-800 help line
service.
UNITED STATES SECRET SERVICE
SALARIES AND EXPENSES
The conferees agree to provide $823,800,000 as proposed
by the House instead of $778,279,000 as proposed by the Senate.
ACQUISITION, CONSTRUCTION, IMPROVEMENT, AND RELATED EXPENSES
The conferees agree to provide $8,941,000 instead of
$5,021,000 as proposed by the House and $4,283,000 as proposed
by the Senate. Included in this amount is $3,920,000 for
security enhancements at the Vice President's residence.
GENERAL PROVISIONS--DEPARTMENT OF THE TREASURY
Section 110. The conferees agree to continue a provision
which requires the Secretary of the Treasury to comply with
certain reprogramming guidelines when obligating or expending
funds for law enforcement activities.
Section 111. The conferees agree to continue a provision
which allows the Department of the Treasury to purchase
uniforms, insurance, and motor vehicles without regard to the
general purchase price limitation, and enter into contracts
with the Department of State for health and medical services
for Treasury employees in overseas locations.
Section 112. The conferees agree to continue a provision
which requires the expenditure of funds so as not to diminish
efforts under section 105 of the Federal Alcohol Administration
Act.
Section 113. The conferees agree to continue a provision
which authorizes transfers, up to 2 percent, between law
enforcement appropriations under certain circumstances.
Section 114. The conferees agree to continue a provision
which authorizes the transfer, up to 2 percent, between the
Departmental Offices, Office of Inspector General, Treasury
Inspector General for Tax Administration, Financial Management
Service, and Bureau of Public Debt appropriations under certain
circumstances.
Section 115. The conferees agree to include a new
provision proposed by the House that authorizes transfer, up to
2 percent, between the Internal Revenue Service and the
Treasury Inspector General for Tax Administration under certain
circumstances.
Section 116. The conferees agree to continue a provision
regarding the purchase of law enforcement vehicles.
Section 117. The conferees agree to continue a provision
proposed by the House which prohibits the Department of the
Treasury and the Bureau of Engraving and Printing from
redesigning the $1 Federal Reserve Note.
Section 118. The conferees agree to continue and make
permanent a provision which authorizes Treasury law enforcement
agencies to pay their protection officers premium pay in excess
of the pay period limitation.
Section 119. The conferees agree to include a new
provision that provides for transfer from and reimbursements to
the Salaries and Expenses appropriation of the Financial
Management Service for the purposes of debt collection.
Section 120. The conferees agree to include a new
provision that extends the Treasury Franchise Fund through
October 1, 2002.
Section 121. The conferees agree to include a new
provision that requires that no reorganization of the US
Customs Service shall result in a reduction of service to the
area served by the Port of Racine, Wisconsin, below the level
of service provided in fiscal year 2000.
Section 122. The conferees agree to include a new
provision proposed by the House authorizing and directing the
Bureau of Alcohol, Tobacco and Firearms to reimburse the
subcontractor that provided services in 1993 and 1994 pursuant
to Bureau of Alcohol, Tobacco and Firearms contract number TATF
93-3 out of fiscal year 2001 appropriations or prior year
unobligated balances.
TITLE II--POSTAL SERVICE
Payment to the Postal Service Fund
The conferees agree to provide $96,093,000 as proposed by
the House instead of $67,093,000 as proposed by the Senate. Of
this amount, $67,093,000 is provided as an advance
appropriation for free and reduced rate mail and $29,000,000 is
provided for reimbursement to the Postal Service for prior year
losses.
TITLE III--EXECUTIVE OFFICE OF THE PRESIDENT AND FUNDS APPROPRIATED TO
THE PRESIDENT
Compensation of the President and the White House Office
SALARIES AND EXPENSES
The conferees agree to provide $53,288,000 as proposed by
the Senate instead of $52,135,000 as proposed by the House and
include a proviso that $9,072,000 of the funds appropriated
shall be available for reimbursements to the White House
Communications Agency, as proposed by the House.
Executive Residence at the White House
OPERATING EXPENSES
The conferees agree to provide $10,900,000 as proposed by
the Senate instead of $10,286,470 as proposed by the House.
WHITE HOUSE REPAIR AND RESTORATION
The conferees agree to provide $968,000 instead of
$5,510,000 as proposed by the Senate and $658,000 as proposed
by the House. The conferees provide $458,000 for the design and
replacement of the existing concrete raceway containing voice
and communication lines serving the East Wing and the Executive
Residence instead of the full request of $5,000,000. The
conferees direct the Executive Residence to submit a completed
design to the Committees on Appropriations, including an
estimate of total construction costs associated with this
project.
Special Assistance to the President and Official Residence of the Vice
President
SALARIES AND EXPENSES
The conferees agree to provide $3,673,000 as proposed by
the Senate instead of $3,664,000 as proposed by the House.
Council of Economic Advisors
SALARIES AND EXPENSES
The conferees agree to provide $4,110,000 as proposed by
the Senate instead of $3,997,000 as proposed by the House.
Office of Policy Development
SALARIES AND EXPENSES
The conferees agree to provide $4,032,000 as proposed by
the Senate instead of $4,030,000 as proposed by the House.
National Security Council
SALARIES AND EXPENSES
The conferees agree to provide $7,165,000 as proposed by
the Senate instead of $7,148,000 as proposed by the House.
Office of Administration
SALARIES AND EXPENSES
The conferees agree to provide $43,737,000 as proposed by
the Senate instead of $41,185,000 as proposed by the House. The
conferees agree to delete language proposed by the House to
delay the effective date of section 638(h) of Public Law 106-
58, regarding the establishment of a Chief Financial Officer
within the Executive Office of the President.
Office of Management and Budget
SALARIES AND EXPENSES
The conferees agree to provide $68,786,000 instead of
$67,143,000 as proposed by the House and $67,935,000 as
proposed by the Senate. The conferees fully fund the
President's request.
APPORTIONMENT FOR INTERNATIONAL FOOD ASSISTANCE PROGRAMS
The conferees do not concur with the House report
language regarding apportionment for International Food
Assistance Programs.
Office of National Drug Control Policy
SALARIES AND EXPENSES
The conferees agree to provide $24,759,000 as proposed by
the House instead of $24,312,000 as proposed by the Senate.
Counterdrug Technology Assessment Center
The conferees agree to provide $29,053,000 instead of
$29,750,000 as proposed by the House and $29,052,000 as
proposed by the Senate.
Federal Drug Control Programs
HIGH INTENSITY DRUG TRAFFICKING AREAS PROGRAM
The conferees agree to provide $206,500,000 instead of
$217,000,000 as proposed by the House and $196,000,000 as
proposed by the Senate. The conferees fully fund the
Administration's request, and include an additional $14,500,000
to increase funding or expand existing HIDTAs, or to fund newly
designated HIDTAs. The conferees provide that existing HIDTAs
shall be funded at fiscal year 2000 levels unless the ONDCP
Director submits to the Committees, and the Committees approve,
justification for changes in those levels based on clearly
articulated priorities for the HIDTA program, as well as
published ONDCP performance measures of effectiveness (PMEs).
Similarly, while the conferees provide additional funding that
may be used for newly designated HIDTAs, they direct that no
funds may be obligated for such purposes until similar
justification is provided to the Committees for approval.
The ability to evaluate effectiveness of individual
HIDTAs, and to match funding needs against budgets, depends on
reliable and consistent methodology for performance measurement
and management. This is particularly important given the key
role HIDTAs play in bringing together many divergent
counterdrug agencies and crosscutting programs--which also
exacerbates the problem of isolating the impact of HIDTAs. The
conferees anticipate that the completion of work by the HIDTA
Performance Management Working Group will improve performance
measurement methodology and data collection covering the three
main target areas identified in 1999. These are: increasing
compliance with HIDTA developmental standards; dismantling or
disabling at least 5 percent of targeted drug trafficking
organizations; and reducing specific types of violent crime.
The conferees support ONDCP plans to validate and verify the
HIDTA management, including the use of on-site reviews and
external financial evaluations.
As ONDCP reviews candidates for new HIDTA funding, the
conferees direct it to consider the following: Las Vegas,
Nevada; Arkansas; Minnesota; North Carolina; and Northern
Florida, which have requested designation; increases for
Central Florida, Southwest Border (for New Mexico, South Texas,
West Texas, and Arizona), New England, Gulf Coast, Oregon,
Northwest (including southwest and eastern Washington), and
Chicago HIDTAs; and full minimum funding for new HIDTAs in
Central Valley, California, Hawaii, and Ohio. The conferees
urge ONDCP to consider using funds provided above the budget
request for designating new HIDTAs from areas which have
already submitted requests.
SPECIAL FORFEITURE FUND
The conferees agree to provide $233,600,000 instead of
$219,000,000 as proposed by the House and $144,300,000 as
proposed by the Senate. Of this amount, the conferees provide
$185,000,000 for the National Youth Anti-Drug Media Campaign;
$40,000,000 to carry out the Drug Free Communities Act;
$3,000,000 for the costs of space and operations of the counter
drug intelligence executive secretariat (CDX); $3,300,000 for
anti-doping efforts of the United States Olympic Committee;
$1,300,000 to the Metro Intelligence Support and Technical
Investigative Center (MISTIC); and $1,000,000 for the National
Drug Court Institute.
NATIONAL YOUTH ANTI-DRUG MEDIA CAMPAIGN
The conferees negate neither the House nor Senate
Committee Report language regarding the youth media campaign.
The conferees are concerned with ONDCP's use of pro bono
credits under the match program for programming content, and
note with interest the Statement of Pro-Bono Match Program and
Guidelines that ONDCP posted on its website in July 2000.
Consistent with those guidelines, the conferees direct that
ONDCP not issue credits for ad time and/or space if already
purchased with funds appropriated for the campaign.
Furthermore, the conferees direct that ONDCP not issue any
credits for programming content once a program is in
syndication unless it has previously reported to the Committees
on Appropriations reasons why such credit is necessary.
Finally, the conferees underscore the language on page 11 of
the guidelines that reads ``ONDCP exercises its authority to
review public service match materials for credit and valuation
through its primary advertising contractor. No ONDCP contractor
may make suggestions or requests about, or otherwise attempt to
influence or modify the creative product of any media
organization or representative for the purpose of qualifying
for pro bono match credit.'' In keeping with this the conferees
direct ONDCP to ensure that neither it nor its contractor will
review programming content under consideration for pro bono
credit under the match program until such programming is in its
final form.
Title IV--Independent Agencies Federal Election Commission
SALARIES AND EXPENSES
The conferees agree to provide $40,500,000 instead of
$40,240,000 as proposed by the House and $39,755,000 as
proposed by the Senate.
General Services Administration
FEDERAL BUILDINGS FUND
LIMITATIONS ON AVAILABILITY OF REVENUE
The conferees agree to provide $5,971,509,000 in new
obligational authority instead of $5,272,370,000 as proposed by
the House and $5,502,333,000 as proposed by the Senate. The
conferees directly appropriate $464,154,000 into the Fund to
cover a portion of the new obligational needs of the Fund.
AFRICAN BURIAL GROUND
The conferees recognize the efforts of GSA to memorialize
the 17th and 18th century African Americans whose remains were
discovered during the excavation for a new Federal building at
Foley Square in lower Manhattan. Since 1992, significant work
has been conducted on the memorialization but additional work
is required prior to and including the reinterment of the
remains. The conferees expect GSA to complete the project using
funds made available from the Federal Buildings Fund or from
the borrowing authority remaining for the buildings project at
Foley Square.
CONSTRUCTION AND ACQUISITION
The conferees agree to provide $472,176,000 instead of no
funding as proposed by the House and $3,000,000 as proposed by
the Senate. These funds are provided for nine projects. The
conferees direct GSA to provide a written report to the
Committees on Appropriations with respect to how GSA plans to
allocate these funds among the various projects prior to
allocating the funds. Within the funds provided the conferees
have included $3,500,000 for the design and site acquisition of
a combined law enforcement facility in Saint Petersburg,
Florida.
The conferees also agree to provide $276,400,000 as an
advance appropriation, not available until October 1, 2001, for
four courthouse construction projects.
REPAIRS AND ALTERATIONS
The conferees agree to provide $671,193,000 as proposed
by the Senate instead of $490,592,000 as proposed by the House.
This level fully funds the request with the following
exceptions: no funds are provided for the chlorofluorocarbon
program, the energy program is funded at $5,000,000, and the
glass fragment retention program is funded at $5,000,000.
BUILDING OPERATIONS
The conferees agree to provide $1,624,771,000 as proposed
by the Senate instead of $1,580,909,000 as proposed by the
House. Within this limitation level, the conferees have
included $500,000 to conduct a site selection analysis for a
replacement facility for the National Center for Environmental
Prediction of the National Oceanic and Atmospheric
Administration, currently located in Camp Springs, Maryland.
The delineated area shall be in the Washington, D.C.
Metropolitan area and include the consideration of appropriate
educational institutions qualified to be project partners. A
report on the findings of the study shall be provided to the
conferees within 120 days of the enactment of this Act.
POLICY AND OPERATIONS
The conferees agree to provide $123,920,000 instead of
$123,420,000 as proposed by the Senate and $115,434,000 as
proposed by the House. Increases above the enacted level
include $3,285,000 for pay costs to maintain current levels,
$2,075,000 for protection and maintenance at the Lorton complex
in Virginia, and $8,000,000 for the critical infrastructure
protection initiative. The conferees agree to provide up to
$500,000 for virtual archive storage and agree to provide
$190,000, from within available funds, for the Plains States
Depopulation Symposium as proposed by the Senate. The conferees
do not agree to the reduction of funding from the fiscal year
2000 level for the digital learning technology effort and
direct that $1,000,000 be used to continue a digital medical
education project in connection with the Native American
Digital Telehealth Project and Upper Great Plains Native
American Telehealth Program and that $1,000,000 be used to
continue activities that will be the basis for the 21st Century
Distributed Learning Environment in Education.
ALTERNATIVE FUELS
The conferees urge the General Services Administration to
use ethanol, biodiesel, and other alternative fuels to the
maximum extent practicable in meeting GSA's fuel needs.
EXPENSES, PRESIDENTIAL TRANSITION
The conferees agree to provide $7,100,000, as proposed by
the Senate instead of no appropriation as proposed by the
House.
GENERAL SERVICES ADMINISTRATION--GENERAL PROVISIONS
Section 401. The conferees agree to continue a provision
that provides that accounts available to GSA shall be credited
with certain funds received from government corporations.
Section 402. The conferees agree to continue a provision
that provides that funds available to GSA shall be available
for the hire of passenger motor vehicles.
Section 403. The conferees agree to continue a provision
that authorizes GSA to transfer funds within the Federal
Buildings Fund to meet program requirements subject to approval
by the Committees on Appropriations.
Section 404. The conferees agree to continue a provision
that prohibits the use of funds to submit a fiscal year 2001
budget request for courthouse construction projects that do not
meet design guide criteria, do not reflect the priorities of
the Judicial Conference of the United States, and are not
accompanied by a standardized courtroom utilization study.
Section 405. The conferees agree to continue a provision
that provides that no funds may be used to increase the amount
of occupiable square feet or provide cleaning services,
security enhancements, or any other service usually provided to
any agency which does not pay the requested rental rates.
Section 406. The conferees agree to continue a provision
that provides that funds provided by the Information Technology
Fund for pilot information technology projects may be repaid to
the Fund.
Section 407. The conferees agree to continue a provision
that permits GSA to pay claims of up to $250,000 arising from
construction projects and the acquisition of buildings.
Section 408. The conferees agree to include a provision
as proposed by the House to provide a one-year extension to the
period for which voluntary separation incentive payments may be
offered by the Administrator of General Services to qualified
employees.
Section 409. The conferees agree to include a new
provision proposed by the Senate designating the Federal
Building and United States Courthouse located at 102 North 4th
Street in Grand Forks, North Dakota, as the ``Ronald N. Davies
Federal Building and United States Courthouse''.
Section 410. The conferees agree to include a new
provision proposed by the Senate regarding the Columbus, New
Mexico border station.
Section 411. The conferees agree to include a new
provision proposed by the Senate designating the United States
Bankruptcy Courthouse located at 1100 Laurel Street in
Columbia, South Carolina, as the ``J. Bratton Davis United
States Bankruptcy Courthouse''.
Section 412. The conferees agree to include a new
provision proposed by the Senate designating the United States
Courthouse Annex located at 901 19th Street in Denver,
Colorado, as the ``Alfred A. Arraj United States Courthouse
Annex''.
Section 413. The conferees agree to include a new
provision proposed by the Senate designating the dormitory
building currently being constructed on the Core Campus of the
Federal Law Enforcement Training Center in Glynco, Georgia, as
the ``Paul Coverdell Dormitory''.
Merit Systems Protection Board
salaries and expenses
The conferees agree to provide $29,437,000 as proposed by
the Senate instead of $28,857,000 as proposed by the House.
Federal Payment to the Morris K. Udall Scholarship and Excellence in
National Environmental Policy Foundation
The conferees agree to provide $2,000,000 as proposed by
the House instead of $1,000,000 as proposed by the Senate.
Environmental Dispute Resolution Fund
The conferees agree to provide $1,250,000 as proposed by
the House instead of $500,000 as proposed by the Senate.
National Archives and Records Administration
operating expenses
The conferees agree to provide $209,393,000 as proposed
by the Senate instead of $195,119,000 as proposed by the House,
of which up to $5,000,000 may be used for the implementation of
the Nazi War Crimes Disclosure Act (5 U.S.C. 552 note; Public
Law 105-246), including preservation and restoration of
declassified records, public access and dissemination
activities, and necessary support services for the Nazi War
Criminal Records Interagency Working Group.
repairs and restoration
The conferees agree to provide $95,150,000 instead of
$5,650,000 as proposed by the House and $4,950,000 as proposed
by the Senate. This level of funding provides $4,950,000 for
the base repairs and restoration program, $88,000,000 for the
major repair and restoration project at the main Archives
building, $1,500,000 for the construction of a new Southeast
Regional Archives facility, and $700,000 for the design of a
10,000-square-foot extension to the Gerald R. Ford Museum.
National Historical Publications and Records Commission
grants program
The conferees agree to provide $6,450,000 as proposed by
the Senate instead of $6,000,000 as proposed by the House.
Office of Personnel Management
salaries and expenses
The conferees agree to provide $94,095,000 as proposed by
the Senate instead of $93,471,000 as proposed by the House.
parental leave
The conferees direct the Office of Personnel Management
to conduct a study to develop alternative means for providing
Federal employees with at least 6 weeks of paid parental leave
in connection with the birth or adoption of a child, and submit
a report containing its findings and recommendations to the
Committees on Appropriations by September 30, 2001. The report
should include projected utilization rates and views as to
whether this benefit can be expected to curtail the rate at
which Federal employees are being lost to the private sector,
help the Federal government recruit and retain employees,
reduce turnover and replacement costs, and contribute to
parental involvement during a child's formative years.
limitation on administrative expenses
The conferees agree to provide $101,986,000 as proposed
by the House instead of $99,624,000 as proposed by the Senate.
Office of Inspector General
salaries and expenses
The conferees agree to provide $1,360,000 as proposed by
the House instead of $1,356,000 as proposed by the Senate.
Office of Special Counsel
salaries and expenses
The conferees agree to provide $11,147,000 instead of
$10,319,000 as proposed by the House and $10,733,000 as
proposed by the Senate. The conferees fully fund the
President's request.
United States Tax Court
salaries and expenses
The conferees agree to provide $37,305,000 as proposed by
the House instead of $35,474,000 as proposed by the Senate.
Title V--General Provisions
This Act
Section 501. The conferees agree to continue the
provision limiting the expenditure of funds to the current year
unless expressly provided in this Act.
Section 502. The conferees agree to continue the
provision limiting the expenditure of funds for consulting
services under certain conditions.
Section 503. The conferees agree to continue the
provision prohibiting the use of funds to engage in activities
that would prohibit the enforcement of section 307 of the 1930
Tariff Act.
Section 504. The conferees agree to continue the
provision prohibiting the transfer of control over the Federal
Law Enforcement Training Center out of the Department of the
Treasury.
Section 505. The conferees agree to continue the
provision concerning employment rights of Federal employees who
return to their civilian jobs after assignment with the Armed
Forces.
Section 506. The conferees agree to continue the
provision that requires compliance with the Buy American Act.
Section 507. The conferees agree to continue the
provision concerning prohibition of contracts that use certain
goods not made in America.
Section 508. The conferees agree to continue the
provision prohibiting contract eligibility where fraudulent
intent has been proven in affixing ``Made in America'' labels.
Section 509. The conferees agree to continue the
provision prohibiting the expenditure of funds for abortions
under the FEHBP, as proposed by the House.
Section 510. The conferees agree to continue the
provision that would authorize the expenditure of funds for
abortions under the FEHBP if the life of the mother is in
danger or the pregnancy is a result of an act of rape or
incest, as proposed by the House.
Section 511. The conferees agree to continue the
provision providing that fifty percent of unobligated balances
may remain available for certain purposes.
Section 512. The conferees agree to continue the
provision restricting the use of funds for the White House to
request official background reports without the written consent
of the individual who is the subject of the report.
Section 513. The conferees agree to continue the
provision that cost accounting standards under the Federal
Procurement Policy Act shall not apply to the FEHBP.
Section 514. The conferees agree to include a new
provision that transfers a parcel of land from the Gerald R.
Ford Library and Museum to the Gerald R. Ford Foundation as
trustee, with reversionary interest as proposed by the House.
Section 515. The conferees include a new provision
requiring OMB to develop guidelines for ensuring and maximizing
the quality, objectivity, utility, and integrity of information
disseminated by Federal agencies as proposed by the House.
Section 516. The conferees agree to include a new
provision permitting OPM to utilize certain funds to resolve
litigation and implement settlement agreements regarding the
non-foreign area cost-of-living allowance program as proposed
by the Senate.
Section 517. The conferees include and modify a provision
prohibiting the use of funds for the purpose of implementation,
or in preparation for implementation, of the Kyoto Protocol as
proposed by the House.
Section 518. The conferees agree to include a new
provision requiring OMB to report to Congress on the
effectiveness of the Paperwork Reduction Act of 1975 as
proposed by the Senate.
Title VI--General Provisions
Departments, Agencies and Corporations
Section 601. The conferees agree to continue the
provision authorizing agencies to pay costs of travel to the
United States for the immediate families of Federal employees
assigned to foreign duty in the event of a death or a life
threatening illness of the employee.
Section 602. The conferees agree to continue the
provision requiring agencies to administer a policy designed to
ensure that all of its workplaces are free from the illegal use
of controlled substances.
Section 603. The conferees agree to continue the
provision regarding price limitations on vehicles to be
purchased by the Federal Government.
Section 604. The conferees agree to continue the
provision allowing funds made available to agencies for travel
to also be used for quarters allowances and cost-of-living
allowances.
Section 605. The conferees agree to continue the
provision prohibiting the Government, with certain specified
exceptions, from employing non-U.S. citizens whose posts of
duty would be in the continental U.S.
Section 606. The conferees agree to continue the
provision ensuring that agencies will have authority to pay GSA
bills for space renovation and other services.
Section 607. The conferees agree to continue the
provision allowing agencies to finance the costs of recycling
and waste prevention programs with proceeds from the sale of
materials recovered through such programs.
Section 608. The conferees agree to continue the
provision providing that funds may be used by certain groups to
pay rent and other service costs in the District of Columbia.
Section 609. The conferees agree to continue the
provision providing that no funds may be used to pay any person
filling a nominated position that has been rejected by the
Senate.
Section 610. The conferees agree to continue the
provision precluding the financing of groups by more than one
Federal agency absent prior and specific statutory approval.
Section 611. The conferees agree to continue the
provision authorizing the Postal Service to employ guards and
give them the same special police powers as GSA guards as
proposed by the Senate.
Section 612. The conferees agree to continue the
provision prohibiting the use of funds for enforcing
regulations disapproved in accordance with the applicable law
of the U.S.
Section 613. The conferees agree to continue the
provision limiting the pay increases of certain prevailing rate
employees.
Section 614. The conferees agree to continue the
provision limiting the amount of funds that can be used for
redecoration of offices under certain circumstances.
Section 615. The conferees agree to continue the
provision prohibiting the expenditure of funds for the
acquisition of additional law enforcement training facilities.
Section 616. The conferees agree to continue the
provision to allow for interagency funding of national security
and emergency telecommunications initiatives.
Section 617. The conferees agree to continue the
provision requiring agencies to certify that a Schedule C
appointment was not created solely or primarily to detail the
employee to the White House.
Section 618. The conferees agree to continue the
provision requiring agencies to administer a policy designed to
ensure that all of its workplaces are free from discrimination
and sexual harassment.
Section 619. The conferees agree to continue the
provision prohibiting the importation of any goods manufactured
by forced or indentured child labor.
Section 620. The conferees agree to continue the
provision prohibiting the payment of the salary of any employee
who prohibits, threatens or prevents another employee from
communicating with Congress.
Section 621. The conferees agree to continue the
provision prohibiting Federal training not directly related to
the performance of official duties.
Section 622. The conferees agree to continue and modify
the provision prohibiting the expenditure of funds for
implementation of agreements in nondisclosure policies unless
certain provisions are included.
Section 623. The conferees agree to continue the
provision prohibiting use of appropriated funds for publicity
or propaganda designed to support or defeat legislation pending
in Congress.
Section 624. The conferees agree to continue and make
permanent the provision directing OMB to provide an accounting
statement and report on the cumulative costs and benefits of
Federal regulatory programs.
Section 625. The conferees agree to continue the
provision prohibiting any Federal agency from disclosing an
employee's home address to any labor organization, absent
employee authorization or court order.
Section 626. The conferees agree to continue and make
permanent the provision authorizing the Secretary of the
Treasury to establish scientific canine explosive detection
standards.
Section 627. The conferees agree to continue the
provision prohibiting funds to be used to provide non-public
information such as mailing or telephone lists to any person or
organization outside the Government without the approval of the
Committees on Appropriations.
Section 628. The conferees agree to continue the
provision prohibiting the use of funds for propaganda and
publicity purposes not authorized by Congress.
Section 629. The conferees agree to continue the
provision directing agency employees to use official time in an
honest effort to perform official duties.
Section 630. The conferees agree to continue, and include
technical modifications to the provision addressing
contraceptive coverage in health plans participating in the
FEHBP, making it identical to current law as enacted by Section
625 of the Departments of Commerce, Justice and State, the
Judiciary, and Related Agencies Appropriations Act of 2000 and
deleting the names of two plans that no longer participate in
the program.
Section 631. The conferees agree to continue the
provision authorizing the use of fiscal year 2001 funds to
finance an appropriate share of the Joint Financial Management
Improvement Program.
Section 632. The conferees agree to continue and modify
the provision authorizing agencies to transfer funds to the
Policy and Operations account of GSA to finance an appropriate
share of the Joint Financial Management Improvement Program.
Section 633. The conferees agree to continue and modify
the provision authorizing agencies to provide child care in
Federal facilities.
Section 634. The conferees agree to continue and modify
the provision authorizing breast feeding at any location in a
Federal building or on Federal property.
Section 635. The conferees agree to include a new
provision that permits interagency funding of the National
Science and Technology Council as proposed by the House.
Section 636. The conferees agree to include a new
provision concerning retirement provisions relating to certain
members of the police force of the Metropolitan Washington
Airports Authority as proposed by the House.
Section 637. The conferees agree to include a new
provision authorizing the President's Pay Agent to use
appropriate data from sources other than the Bureau of Labor
Statistics in making new locality pay designations as proposed
by the House.
Section 638. The conferees agree to continue the
provision requiring identification of the Federal agencies
providing Federal funds and the amount provided for all
proposals, solicitations, grant applications, forms,
notifications, press releases, or other publications related to
the distribution of funding to a State.
Section 639. The conferees agree to include a new
provision requiring the mandatory removal from employment of
any law enforcement officer convicted of a felony as proposed
by the Senate.
Section 640. The conferees agree to include a new
provision repealing Section 504 of the Department of
Transportation and Related Agencies Appropriations Act, 2001
(as enacted into law by P.L. 106-346).
Section 641. The conferees agree to include a new
provision making a modification to the calculation of
disability pay for Federal firefighters as proposed by the
House.
Section 642. The conferees agree to include a new
provision that includes a technical modification to the basis
for using inactive duty military leave as proposed by the
House.
Section 643. The conferees agree to include a new
provision that requires criminal background checks for
employees at federally provided day care facilities of the
executive branch as proposed by the House.
Section 644. The conferees include a new provision
modifying Section 501 of the Department of Transportation and
Related Agencies Appropriations Act, 2001 (as enacted into law
by P.L. 106-346) related to Federal Internet sites.
Section 645. The conferees agree to include a new
provision that makes pay rates for Administrative Appeals
Judges comparable to Administrative Law Judges as proposed by
the House.
Section 646. The conferees agree to include a new
provision that requires the Inspector General of each
department or agency to submit to Congress a report that
discloses any activity relating to the collection of data about
individuals who access any Internet site of the department or
agency.
MISCELLANEOUS APPROPRIATIONS
The conference agreement would enact the provisions of
H.R. 5666 as introduced on December 15, 2000. The text of that
bill follows:
A BILL Making miscellaneous appropriations for the fiscal year ending
September 30, 2001, and for other purposes.
Be it enacted by the Senate and House of Representatives
of the United States of America in Congress assembled, That the
following sums are appropriated, out of any money in the
Treasury not otherwise appropriated, for the fiscal year ending
September 30, 2001, and for other purposes namely:
DIVISION A
CHAPTER 1
GENERAL PROVISIONS--THIS CHAPTER
Sec. 101. The Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2001,
is amended--
(1) In title III, under the heading ``Rural
Utilities Service, Rural Electrification and
Telecommunications Loans Program Account'', after ``per
year'' insert ``: Provided further, That not more than
$100,000 shall be available for guarantees of private
sector loans''.
(2) In title III, at the end of the first proviso
under the ``Rural Housing Assistance Grants'' account,
insert ``in Mississippi and Alaska''.
(3) In section 724, by striking ``to Hispanic-
serving institutions'' and all that follows through
``maintained by such institutions'' and inserting ``to
eligible grantees specified in subsection (d)(3) of
that section'';
(4) In title VIII, under the heading ``Rural
Community Advancement Program'', by striking ``January
1, 2001'' and inserting ``January 1, 2000'';
(5) In section 806, by inserting ``: Provided
further, That of the funds made available by this
section, the Secretary shall transfer $5,000,000 to the
State of Alabama to be used in conjunction with the
program administered by the Alabama Department of
Agriculture and Industries: Provided further, That of
the funds made available by this section, the Secretary
shall transfer not more than $300,000 to the State of
Montana for transportation needs associated with
emergency haying and feeding: Provided further, That of
the funds made available by this section, the Secretary
shall use not more than $2,000,000 to carry out a
program for income losses sustained before April 30,
2001, by individuals who raise poultry owned by other
individuals as a result of Poult Enteritis Mortality
Syndrome control programs, as determined by the
Secretary'' after ``American Indian Livestock Feed
Program'';
(6) In section 815(d)(3), by inserting ``affected''
after ``all'';
(7) In section 830, by striking ``Section 401'' and
inserting ``Title IV''.
(8) In section 843, by striking ``were unable to
market the crops'' and all that follows through ``in
this section:'' and inserting ``suffered a loss because
of the insolvency of an agriculture cooperative in the
State of California: Provided, That the amount of a
payment made to a producer under this section shall not
exceed 50 percent of the loss referred to in this
section:'';
(9) In section 844--
(A) in the section heading, by inserting
``, FLUE-CURED, AND CIGAR BINDER TYPE 54-55''
after ``BURLEY''; and
(B) in subsection (a)--
(i) in paragraph (1)--
(I) by inserting ``,
without further cost to the
association,'' after
``settle''; and
(II) by inserting ``, Flue-
cured, or Cigar Binder Type 54-
55'' after ``Burley'' each
place it appears;
(ii) in paragraph (2)(B), by
inserting ``, Flue-cured, Cigar Binder
Type 54-55,'' after ``Burley''; and
(iii) in paragraph (3), by striking
subparagraph (A) and inserting the
following:
``(A) counted for the purpose of
determining the Burley, Flue-cured, or Cigar
Binder Type 54-55 tobacco quota or allotment
for any year under part I of subtitle B of
title III of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1311 et seq.); or'';
(10) Notwithstanding any other provision of law,
section 204(b)(10)(B) of Public Law 106-224 shall not
be effective until July 1, 2001; and
(11) The effective date of this section is the date
of enactment of the Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies
Appropriations Act, 2001.
Sec. 102. The second sentence of section 520 of the Housing
Act of 1949 (42 U.S.C. 1490) is amended by striking ``1990
decennial census'' and inserting ``1990 or 2000 decennial
census'', and by striking ``year 2000'' and inserting ``year
2010''.
Sec. 103. The Secretary of Agriculture, in collaboration
with the Secretaries of Energy and Interior, shall undertake a
study of the feasibility of including ethanol, biodiesel, and
other bio-based fuels as part of the Strategic Petroleum
Reserve. This study shall include a review of legislative and
regulatory changes needed to allow this inclusion, and those
elements necessary to design and implement such a program,
including cost. The Secretary shall provide this study to the
House and Senate Appropriations Committees by February 15,
2001.
Sec. 104. Notwithstanding section 730 of the Agriculture,
Rural Development, Food and Drug Administration, and Related
Agencies Appropriations Act, 2000 (Public Law 106-78), the City
of Wilson, North Carolina, shall be eligible in fiscal year
2001 for the community facility loan guarantee program under
section 306(a)(1) of the Consolidated Farm and Rural
Development Act.
Sec. 105. Title VIII of the Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies
Appropriations Act, 2001, is amended by inserting at the end
the following new section:
``Sec. 778. Notwithstanding section 723 of this Act or any
other provision of law, there are hereby appropriated
$26,000,000, to remain available until expended, for the
program authorized under section 334 of the Federal Agriculture
Improvement and Reform Act of 1996: Provided, That the entire
amount shall be available only to the extent an official budget
request for $26,000,000, that includes designation of the
entire amount of the request as an emergency requirement as
defined in the Balanced Budget and Emergency Deficit Control
Act of 1985, as amended, is transmitted by the President to the
Congress: Provided further, That the entire amount is
designated by the Congress as an emergency requirement pursuant
to section 251(b)(2)(A) of such Act.''.
Sec. 106. In carrying out the bovine tuberculosis
eradication program covered by the Secretary of Agriculture's
emergency declaration effective as of October 11, 2000, the
Secretary of Agriculture shall pay 100 percent of the amounts
of approved claims for materials affected by or exposed to
bovine tuberculosis, and of approved claims growing out of the
destruction of animals: Provided, That in calculating the net
present value of the future income portion of any claim, the
Secretary shall use a discount rate of 7 percent: Provided
further, That the entire amount necessary to carry out this
section shall be available only to the extent that an official
budget request for the entire amount, that includes designation
of the entire amount of the request as an emergency requirement
as defined in the Balanced Budget and Emergency Deficit Control
Act of 1985, as amended, is transmitted by the President to the
Congress: Provided further, That the entire amount is
designated by the Congress as an emergency requirement pursuant
to section 251(b)(2)(A) of such Act.
Sec. 107. Section 820(b) of the Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2001, is amended by striking ``of 1996''
and inserting the following: ``of 1996, and for the Farmland
Protection Program established under section 388 of the Federal
Agriculture Improvement and Reform Act of 1996''.
Sec. 108. For an additional amount for the United States
Department of Agriculture, Office of the General Counsel,
$500,000: Provided, That the entire amount shall be available
only to the extent an official budget request for $500,000,
that includes designation of the entire amount of the request
as an emergency requirement as defined in the Balanced Budget
and Emergency Deficit Control Act of 1985, as amended, is
transmitted by the President to the Congress: Provided further,
That the entire amount is designated by the Congress as an
emergency requirement pursuant to section 251(b)(2)(A) of such
Act.
Sec. 109. For an additional amount for Grain Inspection,
Packers and Stockyards Administration, Salaries and Expenses,
$200,000: Provided, That the entire amount shall be available
only to the extent an official budget request for $200,000,
that includes designation of the entire amount of the request
as an emergency requirement as defined in the Balanced Budget
and Emergency Deficit Control Act of 1985, as amended, is
transmitted by the President to the Congress: Provided further,
That the entire amount is designated by the Congress as an
emergency requirement pursuant to section 251(b)(2)(A) of such
Act.
Sec. 110. Notwithstanding any other provision of law, the
Natural Resources Conservation Service may provide financial
and technical assistance to the Hamakua Ditch project in Hawaii
from funds available for the Emergency Watershed Program, not
to exceed $3,000,000.
CHAPTER 2
DEPARTMENT OF JUSTICE
Federal Prison System
salaries and expenses
For an additional amount for ``Salaries and Expenses'',
$500,000, to remain available until expended: Provided, That
these funds are to be expended by the National Institute of
Corrections (NIC) for a comprehensive assessment of medical
care and incidents of inmate mortality in the Wisconsin State
Prison System.
Office of Justice Programs
justice assistance
For an additional amount for ``Justice Assistance'',
$300,000, to remain available until expended: Provided, That
these funds are to be expended to expand the collection of data
on prisoner deaths while in law enforcement custody.
community oriented policing services
For an additional amount for ``Community Oriented Policing
Services'', $3,080,000, to remain available until expended, of
which $1,880,000 shall be for a grant to the Pasadena,
California, Police Department for equipment; of which $200,000
shall be for a grant to the City of Signal Hill, California,
for equipment and technology for an emergency operations
center; and of which $1,000,000 shall be for a grant to the
State of Alabama Department of Forensic Sciences for equipment.
juvenile justice programs
For an additional amount for ``Juvenile Justice Programs'',
$1,000,000, to remain available until expended, for a grant to
Mobile County, Alabama, for a juvenile court network program.
General Provisions
Sec. 201. Chapter 2 of title II of division B of Public
Law 106-246 (114 Stat. 542) is amended in the matter
immediately under the first heading--
(1) by inserting, ``(or the state, in the case of New
Mexico)'' before ``only''; and
(2) by inserting, ``detention costs,'' after ``court
costs,''.
Sec. 202. For an additional amount under the heading
``United States Attorneys, Salaries and Expenses'' in the
Departments of Commerce, Justice, and State, the Judiciary, and
Related Agencies Appropriations Act, 2001, $10,000,000 for the
State of Texas and $2,000,000 for the State of Arizona, to
reimburse county and municipal governments only for Federal
costs associated with the handling and processing of illegal
immigration and drug and alien smuggling cases, such
reimbursements being limited to court costs, detention costs,
courtroom technology, the building of holding spaces,
administrative staff, and indigent defense costs.
Sec. 203. In addition to amounts appropriated under the
heading ``State and Local Law Enforcement Assistance, Office of
Justice Programs'' in the Departments of Commerce, Justice, and
State, the Judiciary, and Related Agencies Appropriations Act,
2001, $9,000,000 is for an award to the Alliance of Boys &
Girls of South Carolina for the establishment of the Strom
Thurmond Boys & Girls Club National Training Center.
Sec. 204. In addition to any amounts made available for
``State and Local Law Enforcement Assistance'' within the
Department of Justice, $500,000 shall be made available only
for the New Hampshire Department of Safety to investigate and
support the prosecution of violations of federal trucking laws.
Sec. 205. In addition to other amounts made available for
the COPS technology program of the Department of Justice,
$4,000,000 shall be available to the State of South Dakota to
establish a regional radio system to facilitate communications
between Federal, State, and local law enforcement agencies,
firefighting agencies, and other emergency services agencies.
DEPARTMENT OF COMMERCE
Economic and Statistical Analysis
salaries and expenses
For an additional amount for ``Salaries and Expenses'',
$200,000, to remain available until expended, for the
establishment of satellite accounts for the travel and tourism
industry.
National Oceanic and Atmospheric Administration
operations, research, and facilities
For an additional amount for ``Operations, Research, and
Facilities'', $750,000, to remain available until expended, for
a study by the National Academy of Sciences pursuant to H.R.
2090, as passed by the House of Representatives on September
12, 2000.
General Provisions
Sec. 206. The Departments of Commerce, Justice, and State,
the Judiciary, and Related Agencies Appropriations Act, 2001,
as enacted by section 1(a)(2) of the Act entitled ``An Act
making appropriations for the government of the District of
Columbia and other activities chargeable in whole or in part
against revenues of said District for the fiscal year ending
September 30, 2001, and for other purposes'' is amended by
inserting before the period at the end of the paragraph under
the heading ``National Oceanic and Atmospheric Administration,
Operations, Research, and Facilities'' the following new
proviso: ``: Provided further, That, of the amounts made
available for the National Marine Fisheries Service under this
heading, $10,000,000 shall be available only for research
regarding litigation concerning the Alaska Steller sea lion and
Bering Sea/Aleutian Islands and Gulf of Alaska groundfish
fisheries, of which $6,000,000 shall be available only for the
Office of Oceanic and Atmospheric Research to study the impact
of ocean climate shifts on the North Pacific and Bering Sea
fish and marine mammal species composition, of which $2,000,000
shall be available only for the National Ocean Service to study
predator/prey relationships as they relate to the decline of
the western population of Steller sea lions, and of which
$2,000,000 shall be available only for the North Pacific
Fishery Management Council for an independent analysis of
Steller sea lion science and other work related to such
litigation''.
Sec. 207. (a) In addition to amounts appropriated or
otherwise made available under the heading ``Operations,
Research, and Facilities, National Oceanic and Atmospheric
Administration'' in the Departments of Commerce, Justice, and
State, the Judiciary, and Related Agencies Appropriations Act,
2001, $7,500,000 is appropriated for disaster assistance for
communities affected by the 2000 western Alaska salmon disaster
for which the Secretary of Commerce declared a fishery failure
under section 312(a) of the Magnuson Stevens Fisheries
Conservation and Management Act.
(b) Funds appropriated by this section shall be made
available as direct lump sum payments no later than 30 days
after the date of enactment of this Act, as follows: $3,500,000
to the Tanana Chiefs Conference, $3,500,000 to the Association
of Village Council Presidents, and $500,000 to Kawerak.
(c) Such funds shall be used to provide personal assistance
with priority given to (1) food, (2) energy needs, (3) housing
assistance, (4) transportation fuel including for subsistence
activities, and (5) other urgent community needs.
(d) Not more than 5 percent of such funds may be used for
administrative expenses.
(e) The President of the Tanana Chiefs Conference, the
President of the Association of Village Council Presidents, and
the President of Kawerak shall disburse all funds no later than
May 1, 2000 and shall submit a report to the Secretary of
Commerce detailing the expenditure of funds, including the
number of persons and households served and the amount of
administrative costs, by the end of the fiscal year.
Sec. 208. In addition to amounts appropriated or otherwise
made available by this or any other Act, $3,000,000 is
appropriated to enable the Secretary of Commerce to provide
economic assistance to fishermen and fishing communities
affected by federal closures and fishing restrictions in the
Hawaii long line fishery, to remain available until expended.
Sec. 209. Implementation of Steller Sea Lion Protective
Measures.--
(a) Findings.--The Congress finds that--
(1) the western population of Steller sea lions has
substantially declined over the last twenty-five years.
(2) scientists should closely research and analyze
all possible factors relating to such decline,
including the possible interactions between commercial
fishing and Steller sea lions and the localized
depletion hypothesis;
(3) the authority to manage commercial fishing in
federal waters lies with the regional councils and the
Secretary of Commerce (hereafter in this section
``Secretary'') pursuant to the Magnuson-Stevens Fishery
Conservation and Management Act (hereafter in this
section ``Magnuson-Stevens Act''); and
(4) the Secretary of Commerce shall comply with the
Magnuson-Stevens Act when using fishery management
plans and regulations to implement the decisions made
pursuant to findings under the Endangered Species Act,
and shall utilize the processes and procedures of the
regional fishery management councils as required by the
Magnuson-Stevens Act.
(b) Independent Scientific Review.--The North Pacific
Fishery Management Council (hereafter in this section ``North
Pacific Council'') shall utilize the expertise of the National
Academy of Sciences to conduct an independent scientific review
of the November 30, 2000 Biological Opinion for the Bering Sea/
Aleutian Islands and Gulf of Alaska groundfish fisheries
(hereafter in this section ``Biological Opinion''), its
underlying hypothesis, and the Reasonable and Prudent
Alternatives (hereafter in this section ``Alternatives'')
contained therein. The Secretary shall cooperate with the
independent scientific review, and the National Academy of
Sciences is requested to give its highest priority to this
review.
(c) Preparation of Fishery Management Plans and
Regulations To Implement Protective Measures in the November
30, 2000 Biological Opinion.--
(1) The Secretary of Commerce shall submit to the
North Pacific Council proposed conservation and
management measures to implement the Alternatives
contained in the November 30, 2000 Biological Opinion
for the Bering Sea/Aleutian Islands and Gulf of Alaska
groundfish fisheries. The North Pacific Council shall
prepare and transmit to the Secretary a fishery
management plan amendment or amendments to implement
such Alternatives that are consistent with the
Magnuson-Stevens Act (including requirements in such
Act relating to best available science, bycatch
reduction, impacting on fishing communities, the safety
of life at sea, and public comment and hearings.)
(2) The Bering Sea/Aleutian Islands and Gulf of
Alaska groundfish fisheries shall be managed in a
manner consistent with the Alternatives contained in
the Biological Opinion, except as otherwise provided in
this section. The Alternatives shall become fully
effective no later than January 1, 2002, as revised if
necessary and appropriate based on the independent
scientific review referred to in subsection (b) and
other new information, and shall be phased in in 2001
as described in paragraph (3).
(3) The 2001 Bering Sea/Aleutian Islands and Gulf
of Alaska groundfish fisheries shall be managed in
accordance with the fishery management plan and federal
regulations in effect for such fisheries prior to July
15, 2000, including--
(A) conservative total allowable catch
levels;
(B) no entry zones within three miles of
rookeries;
(C) restricted harvest levels near
rookeries and haul-outs;
(D) federally-trained observers;
(E) spatial and temporal harvest
restrictions;
(F) federally-mandated bycatch reduction
programs; and
(G) additional conservation benefits
provided through cooperative fishing
arrangements,
and said regulations are hereby restored to full force
and effect.
(4) The Secretary shall amend these regulations by
January 20, 2001, after consultation with the North
Pacific Council and in a manner consistent with all
law, including the Magnuson-Stevens Act, and consistent
with the Alternatives to the maximum extent
practicable, subject to the other provisions of this
subsection.
(5) The harvest reduction requirement (``Global
Control Rule'') shall take effect immediately in any
2001 groundfish fishery in which it applies, but shall
not cause a reduction in the total allowable catch of
any fishery of more than ten percent.
(6) In enforcing regulations for the 2001
fisheries, the Secretary, upon recommendation of the
North Pacific Council, may open critical habitat where
needed, adjust seasonal catch levels, and take other
measures as needed to ensure that harvest levels are
sufficient to provide income from these fisheries for
small boats and Alaskan on-shore processors that is no
less than in 1999.
(7) The regulations that are promulgated pursuant
to paragraph (4) shall not be modified in any way other
than upon recommendation of the North Pacific Council,
before March 15, 2001.
(d) Sea Lion Protection Measures.--$20,000,000 is hereby
appropriated to the Secretary of Commerce to remain available
until expended to develop and implement a coordinated,
comprehensive research and recovery program for the Steller sea
lion, which shall be designed to study--
(1) available prey species;
(2) predator/prey relationships;
(3) predation by other marine mammals;
(4) interactions between fisheries and Steller sea
lions, including the localized depletion theory;
(5) regime shift, climate change, and other impacts
associated with changing environmental conditions in
the North Pacific and Bering Sea;
(6) disease;
(7) juvenile and pup survival rates;
(8) population counts;
(9) nutritional stress;
(10) foreign commercial harvest of sealions outside
the exclusive economic zone;
(11) the residual impacts of former government-
authorized Steller sea lion eradication bounty
programs; and
(12) the residual impacts of intentional lethal
takes of Steller sea lions. Within available funds the
Secretary shall implement on a pilot basis innovative
non-lethal measures to protect Steller sea lions from
marine mammal predators including killer whales,
(e) Economic Disaster Relief.--$30,000,000 is hereby
appropriated to the Secretary of Commerce to make available as
a direct payment to the Southwest Alaska Municipal Conference
to distribute to fishing communities, businesses, community
development quota groups, individuals, and other entities to
mitigate the economic losses caused by Steller sea lion
protection measures heretofore incurred; provided that the
President of such organization shall provide a written report
to the Secretary and the House and Senate Appropriations
Committee within six months of receipt of these funds.
DEPARTMENT OF STATE AND RELATED AGENCY
General Provisions
Sec. 210. In addition to any amounts made available for
``Educational and Cultural Exchange Programs within the
Department of State'', $500,000 shall be made available only
for the Irish Institute.
Sec. 211. In addition to amounts appropriated under the
heading ``International Broadcasting Operations, Broadcasting
Board of Governors'' in the Departments of Commerce, Justice,
and State, the Judiciary, and Related Agencies Appropriations
Act, 2001, $10,000,000 to remain available until expended, for
increased broadcasting to Russia and surrounding areas, and to
China, by Radio Free Europe/Radio Liberty, Radio Free Asia, and
the Voice of America: Provided, That any amount of such funds
may be transferred to the ``Broadcasting Capital Improvements''
account to carry out such purposes.
RELATED AGENCIES
Commission on Online Child Protection
For necessary expenses of the Commission on Online Child
Protection, $750,000, to remain available until expended.
Small Business Administration
salaries and expenses
For an additional amount for ``Salaries and Expenses'',
$1,000,000 shall be available for a grant to the Electronic
Commerce Resource Center in Scranton, Pennsylvania, to
establish an electronic commerce technology distribution
center.
General Provision
Sec. 212. For an additional amount for ``Small Business
Administration, Salaries and Expenses'' $1,000,000 shall be
made available only for a grant to the National Museum of Jazz
in New York, New York.
GENERAL PROVISION--THIS CHAPTER
Sec. 213. (a) The provisions of H.R. 5548 (as enacted into
law by H.R. 4942 of the 106th Congress) are amended as follows:
(1) In title I, under the heading ``Salaries and
Expenses, United States Marshals Service'', by striking
``3,947'' and inserting ``4,034''.
(2) In title I, by redesignating sections 114
through 119 as sections 113 through 118, respectively.
(3) In title II, under the heading ``National
Oceanic and Atmospheric Administration--Operations,
Research, and Facilities'', by striking ``$31,439,000''
and inserting ``$32,054,000''.
(4) In title II, under the heading ``National
Oceanic and Atmospheric Administration--Coastal and
Ocean Activities''--
(A) by striking ``non-contiguous States
except Hawaii'' and inserting ``Alaska'';
(B) by striking ``Inc,'' and inserting
``Inc.,'';
(C) by striking ``scrup;'' and inserting
``scrub;''; and
(D) by striking ``watershed for lower Rouge
River restoration:'' and inserting
``watershed:''.
(5) In title IV, by striking section 406 and by
redesignating sections 407 and 408 as sections 406 and
407, respectively.
(6) In title VI, by striking sections 635 and 636.
(7) In title IX, in the first proviso of section
901, by striking ``, territory or an Indian Tribe'' and
inserting ``or territory''.
(b) The amendments made by this section shall take effect
as if included in H.R. 4942 of the 106th Congress on the date
of its enactment.
CHAPTER 3
DEPARTMENT OF DEFENSE
General Provisions--This Chapter
Sec. 301. In the event that award of the full funding
contract for low-rate initial production of the F-22 aircraft
is delayed beyond December 31, 2000 because of inability to
complete the requirements specified in section 8124 of the
Department of Defense Appropriations Act, 2001 (Public Law 106-
259), the Secretary of the Air Force may obligate up to
$353,000,000 of the funds appropriated in Title III of Public
Law 106-259 to continue F-22 Lot 1 (10 aircraft) advance
procurement to protect the supplier base and preserve program
costs and schedule.
Sec. 302. (a) Consistent with Executive Order Number 1733,
dated March 3, 1913, and notwithstanding section 303 of the
Alaska National Interest Lands Conservation Act, Public Law 96-
487, or any other law, the Department of the Air Force shall
have primary jurisdiction, custody, and control over Shemya
Island and its appurtenant waters (including submerged lands).
In exercising such primary jurisdiction, custody, and control,
the Secretary of the Air Force may utilize and apply such
authorities as are generally applicable to a military
installation, base, camp, post, or station. Shemya Island and
its appurtenant waters (including submerged lands) shall
continue to be included within the Alaska Maritime National
Wildlife Refuge and the National Wildlife Refuge System and the
Secretary of the Interior shall have jurisdiction secondary to
that of the Department of the Air Force. Nothing in this
section shall prohibit the transfer of jurisdiction, custody,
and control over Shemya Island by the Department of the Air
Force to another military department. In the event the military
department exercising such primary jurisdiction, custody, and
control no longer has a need to exercise such primary
jurisdiction, custody, and control of Shemya Island and its
appurtenant waters (including submerged lands), such
jurisdiction, custody, and control shall terminate and the
Secretary of the Interior shall then exercise sole
jurisdiction, custody, and control over Shemya Island and its
appurtenant waters (including submerged lands) as part of the
Alaska Maritime National Wildlife Refuge.
(b) Any environmental contamination of Shemya Island caused
by a military department shall be the responsibility of that
military department and not the responsibility of the
Department of the Interior. Any money rentals received by a
military department from outgrants on Shemya Island will be
applied to the environmental restoration of the island in
accordance with 10 U.S.C. 2667.
(c) This section shall not be construed as altering any
existing property rights of the State of Alaska or any private
person.
(d) The military department exercising primary
jurisdiction, custody, and control over Shemya Island shall,
consistent with the accomplishment of the military mission and
subject to section 21 of the Internal Security Act of 1950,
Public Law 81-831 (50 U.S.C. 797) (also known as the Subversive
Activities Control Act of 1950)--
(1) work with the United States Fish and Wildlife
Service to protect and conserve the wildlife and
habitat on the island; and
(2) grant access to Shemya Island and its
appurtenant waters to the United States Fish and
Wildlife Service for the purpose of management of the
Alaska Maritime National Wildlife Refuge.
Sec. 303. Within the funds appropriated for the Patriot
PAC-3 program under Title III of the Department of Defense
Appropriations Act, 2001 (Public Law 106-259), the Ballistic
Missile Defense Organization shall procure no less than 40 PAC-
3 missiles.
Sec. 304. Section 8133 of Public Law 106-259 (114 Stat.
703) is amended by striking ``$300,000,000'' in the first
proviso and inserting ``$550,000,000''.
(transfer of funds)
Sec. 305. Of the total amount appropriated by title II of
the Department of Defense Appropriations Act, 2001 (Public Law
106-259) for operation and maintenance for the armed force or
armed forces under the jurisdiction of the Secretary of a
military department, the Secretary of that military department
may transfer up to $2,000,000 to the central fund established
by the Secretary under section 2493(d) of title 10, United
States Code, for funding Fisher Houses and Fisher Suites.
Amounts so transferred shall be merged with other amounts in
the central fund to which transferred and shall be available
without fiscal year limitation for the purposes for which
amounts in that fund are available.
Sec. 306. Funding for Certain Costs of Vessel Transfers.
There is hereby appropriated into the Defense Vessels Transfer
Program Account such sums as may be necessary for the costs (as
defined in section 502 of the Congressional Budget Act of 1974
(2 U.S.C. 661a)) of the lease-sale transfers authorized by the
National Defense Authorization Act, 2001. Funds in that account
are available only for the purpose of covering those costs.
Sec. 307. Of the total amount appropriated by title IV of
the Department of Defense Appropriations Act, 2001 (Public Law
106-259) under the heading ``Research, Development, Test and
Evaluation, Defense-Wide'', not less than $5,000,000 shall be
made available only for support of a Gulf War illness research
program at the University of Texas Southwestern Medical Center.
(including transfer of funds)
Sec. 308. In addition to amounts appropriated for the
Department of Defense in the Department of Defense
Appropriations Act, 2001 (Public Law 106-259), $150,000,000 is
hereby appropriated for ``Operation and Maintenance, Navy'' and
shall remain available until expended, only for costs
associated with the repair of the U.S.S. COLE: Provided, That
the Secretary of Defense may transfer these funds to
appropriations accounts for procurement: Provided further, That
the funds transferred shall be merged with and shall be
available for the same purposes and for the same time period,
as the appropriation to which transferred: Provided further,
That the transfer authority provided in this section is in
addition to any other transfer authority available to the
Department of Defense: Provided further, That the welfare of
the crew, and of the families of the crew, of the U.S.S. COLE
shall be considered in the Navy's selection of the process and
location for the repair of the U.S.S. COLE: Provided further,
That the entire amount made available in this section is
designated by the Congress as an emergency requirement pursuant
to section 251(b)(2)(A) of the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended.
Sec. 309. Notwithstanding any other provision of law, the
Administrator of the General Services Administration may
utilize funds available to the National Science and Technology
Council (authorized by Executive Order No. 12881), or any
successor entity to the council, under section 635 of the
Treasury and General Government Appropriations Act, 2001 for
payment of any expenses of, and shall ensure that
administrative services, facilities, staff and other support
are provided for, the Commission on the Future of the United
States Aerospace Industry pursuant to section 1092(e)(1) of the
Floyd D. Spence National Defense Authorization Act for Fiscal
Year 2001 (as enacted by section 1 of the Act to authorize
appropriations for fiscal year 2001 for military activities of
the Department of Defense, for military construction, and for
defense activities of the Department of Energy, to prescribe
personnel strengths for such fiscal year for the Armed Forces,
and for other purposes).
Sec. 310. In addition to funds provided elsewhere in this
Act, or in the Department of Defense Appropriations Act, 2001
(Public Law 106-259), $2,000,000 is hereby appropriated to
``Operation and Maintenance, Marine Corps'', only for planning
and National Environmental Protection Act documentation for the
proposed airfield and heliport at the Marine Corps Air Ground
Task Force Training Command.
(transfer of funds)
Sec. 311. Of the funds made available in the Department of
Defense Appropriations Act, 2001 (Public Law 106-259), the
Secretary of the Air Force shall transfer $5,000,000 of the
funds provided for ``Operation and Maintenance, Air Force'' to
the Secretary of the Interior for maintenance, protection, or
preservation of the land and interests in land described in
section 3 of the Minuteman Missile National Historic Site
Establishment Act of 1999 (Public Law 106-115; 113 Stat. 1540):
Provided, That the transfer authority provided in this section
is in addition to any other transfer authority available to the
Department of Defense for fiscal year 2001.
Sec. 312. (a) The Secretary of the Air Force is authorized
to convey to the Roosevelt General Hospital, Portales, New
Mexico, without consideration, and without regard to title II
of the Federal Property and Administrative Services Act of
1949, all right, title, and interest of the United States in
any personal property of the Air Force that the Secretary
determines--
(1) is appropriate for use by the Roosevelt General
Hospital in the operation of that hospital; and
(2) is excess to the needs of the Air Force.
(b) The Secretary may require any additional terms and
conditions in connection with any conveyance under subsection
(a) that the Secretary considers appropriate to protect the
interests of the United States.
(including transfer of funds)
Sec. 313. In addition to amounts appropriated for the
Department of Defense in the Department of Defense
Appropriations Act, 2001 (Public Law 106-259), $100,000,000 is
hereby appropriated for ``Overseas Contingency Operations
Transfer Fund'' and shall remain available until expended:
Provided, That the Secretary of Defense may transfer the funds
provided herein only to appropriations for military personnel;
operation and maintenance; procurement; research, development,
test and evaluation; and working capital funds: Provided
further, That the funds transferred shall be merged with and
shall be available for the same purposes and for the same time
period, as the appropriation to which transferred: Provided
further, That upon a determination that all or part of the
funds transferred from this appropriation are not necessary for
the purposes provided herein, such amounts may be transferred
back to this appropriation: Provided further, That the transfer
authority provided in this section is in addition to any other
transfer authority contained elsewhere in this Act: Provided
further, That funds appropriated by this section, or made
available by the transfer of funds in this section, for
intelligence activities are deemed to be specifically
authorized by the Congress for the purposes of section 504 of
the National Security Act of 1947 (50 U.S.C. 414) during fiscal
year 2001: Provided further, That the entire amount made
available in this section is designated by the Congress as an
emergency requirement pursuant to section 251(b)(2)(A) of the
Balanced Budget and Emergency Deficit Control Act of 1985, as
amended.
Sec. 314. Of the total amount appropriated by title IV of
the Department of Defense Appropriations Act, 2001 (Public Law
106-259) under the heading ``Research, Development, Test and
Evaluation, Navy'', up to $3,000,000 shall be made available to
the Marine Corps to pursue research in Nanotechnology for
Consequence Management.
Sec. 315. Of the total amount appropriated by title IV of
the Department of Defense Appropriations Act, 2001 (Public Law
106-259) under the heading ``Research, Development, Test and
Evaluation, Army'', not less than $1,500,000 shall be made
available only for installation of the Medical Area Network for
Virtual Technologies at Fort Detrick and Walter Reed Army
Hospital, and not less than $1,000,000 shall be made available
only to conduct a pilot study to determine the feasibility of
establishing a Department of Defense Information Analysis
Center for telemedicine.
Sec. 316. The Secretary of the Navy shall acquire 50 acres
of real property located on Reed Island, along the south shore
of the St. John's River across from Blount Island Command,
Jacksonville, Florida. The Secretary of the Navy shall pay not
more than the fair market value of the property, to be
determined pursuant to an appraisal acceptable to the Secretary
of the Navy; but in no case shall the price exceed $4,200,000:
Provided, That the exact acreage and legal description of the
real property to be acquired pursuant to this section shall be
determined by a survey satisfactory to the Secretary of the
Navy: Provided further, That the Secretary of the Navy may
require such additional terms and conditions in connection with
the land acquisition pursuant to this section as the Secretary
considers appropriate to protect the interests of the United
States.
Sec. 317. Of the total amount appropriated by title IV of
the Department of Defense Appropriations Act, 2001 (Public Law
106-259) under the heading ``Research, Development, Test, and
Evaluation, Navy'' the Secretary of the Navy may establish
Marine Fire Training Centers at the Marine and Environmental
Research and Training Station and Barbers Point by grants or
contracts.
Sec. 318. Notwithstanding any other provision of law, and
notwithstanding the provisions in section 7306 of title 10,
United States Code, of the funds provided in the Department of
Defense Appropriations Act, 2001 (Public Law 106-259) for
``Operation and Maintenance, Navy'', $750,000 shall be
available only for repair of ex-Turner Joy.
Sec. 319. In addition to amounts appropriated or otherwise
made available for the Department of Defense elsewhere in this
Act or in the Department of Defense Appropriations Act, 2001
(Public Law 106-259), $2,000,000 is hereby appropriated under
the heading ``Operation and Maintenance, Defense-Wide'', to
remain available for obligation until September 30, 2001, only
for the Defense Imagery and Mapping Agency Program.
Sec. 320. None of the funds available in the Department of
Defense Appropriations Act, 2001 (Public Law 106-259) shall be
used to consolidate or incorporate Air Force radar operations
maintenance and support programs or contracts into an Air Force
SENSOR or a similar acquisition program.
Sec. 321. In addition to amounts appropriated elsewhere in
this Act, or in the Department of Defense Appropriations Act,
2001 (Public Law 106-259), $1,000,000 is hereby appropriated to
``Research, Development, Test and Evaluation, Air Force'', only
to develop rapid diagnostic and fingerprinting techniques along
with molecular monitoring systems for the detection of
nosocomial infections.
Sec. 322. Of the total amount appropriated by title IV of
the Department of Defense Appropriations Act, 2001 (Public Law
106-259) under the heading ``Research, Development, Test and
Evaluation, Navy'', $1,500,000 shall be made available by grant
or contract only to the California Central Coast Research
Partnership (C3RP).
Sec. 323. Fort Irwin National Training Center Expansion.
(a) Findings.--Congress makes the following findings:
(1) The National Training Center at Fort Irwin,
California, is the only instrumented training area in
the world suitable for live fire training of heavy
brigade-sized military forces and thus provides the
Army with essential training opportunities necessary to
maintain and improve military readiness and promote
national security.
(2) The National Training Center must be expanded
to meet the critical need of the Army for additional
training lands suitable for the maneuver of large
numbers of military personnel and equipment, which is
necessitated by advances in equipment, by doctrinal
changes, and by Force XXI doctrinal experimentation
requirements.
(3) The lands being considered for expansion of the
National Training Center are home to the desert
tortoise and other species that are protected under the
Endangered Species Act of 1973, and the Secretary of
Defense and the Secretary of the Interior, in
developing a plan for expansion of the National
Training Center, must provide for such expansion in a
manner that complies with the Endangered Species Act of
1973, the National Environmental Policy Act of 1969,
and other applicable laws.
(4) In order for the expansion of the National
Training Center to be implemented on an expedited
basis, the Secretaries should proceed without delay to
define with specificity the key elements of the
expansion plan, including obtaining early input
regarding national security requirements, Endangered
Species Act of 1973 compliance and mitigation, and
National Environmental Policy Act of 1969 compliance.
(b) Purpose.--The purpose of this section is to expedite
the expansion of the National Training Center at Fort Irwin,
California, in a manner that is fully compliant with
environmental laws.
(c) Preparation of Proposed Expansion Plan.--
(1) Preparation required.--The Secretary of the
Army and the Secretary of the Interior (in this section
referred to as the ``Secretaries'') shall jointly
prepare a proposed plan for the expansion of the
National Training Center at Fort Irwin, California.
(2) Submission and availability.--The plan required
by paragraph (1) (in this section referred to as the
``proposed expansion plan'') shall be completed not
later than 120 days after the date of the enactment of
this Act. When completed, the Secretaries shall make
the proposed expansion plan available to the public and
shall publish in the Federal Register a ``notice of
availability'' concerning the proposed expansion plan.
(d) Key Elements of Proposed Expansion Plan.--
(1) Joint report.--Not later than 45 days after the
date of the enactment of this Act, the Secretaries
shall submit to Congress a joint report that identifies
the key elements of the proposed expansion plan.
(2) Lands withdrawal and reservation.--The proposed
expansion plan shall include the withdrawal and
reservation of an appropriate amount of public lands
for--
(A) the conduct of combined arms military
training at the National Training Center;
(B) the development and testing of military
equipment at the National Training Center;
(C) other defense-related purposes; and
(D) conservation and research purposes.
(3) Conservation measures.--The proposed expansion
plan shall also include a general description of
conservation measures, anticipated to cost
approximately $75,000,000, that may be necessary and
appropriate to protect and promote the conservation of
the desert tortoise and other endangered or threatened
species and their critical habitats in designated
wildlife management areas in the West Mojave Desert.
The conservation measures may include--
(A) the establishment of one or more
research natural areas, which may include lands
both within and outside the National Training
Center;
(B) the acquisition of private and State
lands within the wildlife management areas in
the West Mojave Desert;
(C) the construction of barriers, fences,
and other structures that would promote the
conservation of endangered or threatened
species and their critical habitats;
(D) the funding of research studies; and
(E) other conservation measures.
(d) Preliminary Review of Expansion Plan.--
(1) Review required.--Not later than 90 days after
the date of the enactment of this Act, the Director of
the United States Fish and Wildlife Service shall
submit to the Secretaries a preliminary review of the
proposed expansion plan (as developed as of that date).
In the preliminary review, the Director shall identify,
with as much specificity as possible, an approach for
implementing the proposed expansion plan consistent
with the Endangered Species Act of 1973 (16 U.S.C. 1531
et seq.).
(2) Relation to formal review.--The preliminary
review under paragraph (1) shall not constitute a
formal consultation under section 7 of the Endangered
Species Act of 1973 (16 U.S.C. 1536), but shall be used
to assist the Secretaries in more precisely defining
the nature and scope of an expansion plan for the
National Training Center that is likely to satisfy
requirements of the Endangered Species Act of 1973 and
to expedite the formal consultation process under
section 7 of such Act.
(3) Consideration of preliminary review.--In
preparing the proposed expansion plan, the Secretaries
shall take into account the content of the preliminary
review by the Director of the United States Fish and
Wildlife Service under paragraph (1).
(e) Draft Legislation.--The Secretaries shall submit to
Congress with the proposed expansion plan a draft of proposed
legislation providing for the withdrawal and reservation of
public lands for the expansion of the National Training Center.
It is the sense of the Congress that the proposed legislation
should contain a provision that, if enacted, would prohibit
ground-disturbing military use of the land to be withdrawn and
reserved by the legislation until the Secretaries have
certified that there has been full compliance with the
appropriate provisions of the legislation, the Endangered
Species Act of 1973, the National Environmental Policy Act of
1969, and other applicable laws.
(f) Consultation Under Endangered Species Act of 1973.--The
Secretaries shall initiate the formal consultation required
under section 7 of the Endangered Species Act of 1973 (16
U.S.C. 1536) with respect to expansion of the National Training
Center as soon as practicable and shall complete such
consultation not later than two years after the date of the
enactment of this Act.
(g) Environmental Review.--Not later than six months
following completion of the formal consultation required under
section 7 of the Endangered Species Act of 1973 with respect to
expansion of the National Training Center, the Secretaries
shall complete any analysis required under the National
Environmental Policy Act of 1969 with respect to the proposed
expansion of the National Training Center. The analysis shall
be coordinated, to the extent practicable and appropriate, with
the review of the West Mojave Coordinated Management Plan that,
as of the date of the enactment of this Act, is being
undertaken by the Bureau of Land Management.
(h) Funding.--
(1) Implementation of conservation measures.--There
are authorized to be appropriated $75,000,000 to the
Secretary of the Army for the implementation of
conservation measures necessary for the final expansion
plan for the National Training Center to comply with
the Endangered Species Act of 1973.
(2) Implementation of section.--The amounts of
$2,500,000 for ``Operation and Maintenance, Army'' and
$2,500,000 for ``Management of Lands and Resources,
Bureau of Land Management'' are hereby appropriated to
the Secretary of the Army and the Secretary of the
Interior, respectively, only to undertake and complete
on an expedited basis the activities specified in this
section.
CHAPTER 4
DISTRICT OF COLUMBIA FEDERAL FUNDS
Federal Payment to the District of Columbia Courts
For an additional amount for the District of Columbia
courts for capital repairs necessitated by the recent fire
damage to the courthouse facilities, $350,000, to remain
available until September 30, 2002, and for an additional
amount for such repairs for the Superior Court of the District
of Columbia, $50,000: Provided, That after providing notice to
the Committees on Appropriations of the Senate and House of
Representatives, the District of Columbia courts may reallocate
not more than $1,000,000 of the funds provided under this
heading under the District of Columbia Appropriations Act,
2001, among the items and entities funded under such heading
for the costs of such repairs.
General Provisions--This Chapter
Sec. 401. (a) Section 106(b) of the District of Columbia
Public Works Act of 1954 (sec. 43-1552(b), DC Code), as amended
by section 133 of the District of Columbia Appropriations Act,
1990, is amended--
(1) in the third sentence of paragraph (1), by
striking ``United States Treasury and'' and all that
follows through ``by the''; and
(2) by adding at the end the following new
paragraph:
``(5) Not later than the 15th day of the month following
each quarter (beginning with the first quarter of fiscal year
2001), the inspector general of each Federal department,
establishment, or agency receiving water services from the
District of Columbia shall submit a report to the Committees on
Appropriations of the House of Representatives and Senate
analyzing the promptness of payment with respect to the
services furnished to such department, establishment, or
agency.''.
(b) Section 212(b) of the District of Columbia Public Works
Act of 1954 (sec. 43-1612(b), DC Code), as amended by section
133 of the District of Columbia Appropriations Act, 1990, is
amended--
(1) in the third sentence of paragraph (1), by
striking ``United States Treasury and'' and all that
follows through ``by the''; and
(2) by adding at the end the following new
paragraph:
``(5) Not later than the 15th day of the month following
each quarter (beginning with the first quarter of fiscal year
2001), the inspector general of each Federal department,
establishment, or agency receiving sanitary sewer services from
the District of Columbia shall submit a report to the
Committees on Appropriations of the House of Representatives
and Senate analyzing the promptness of payment with respect to
the services furnished to such department, establishment, or
agency.''.
(c) The amendments made by this section shall take effect
as if included in the enactment of section 133 of the District
of Columbia Appropriations Act, 1990.
Sec. 402. (a) The Act entitled ``An Act donating certain
Lots in the City of Washington for Schools for Colored Children
in the District of Columbia'', approved July 28, 1866 (14 Stat.
343), is amended by striking the second sentence.
(b) Section 319 of the Revised Statutes of the United
States relating to the District of Columbia and Post Roads
(sec. 31-206, D.C. Code) is repealed.
Sec. 403. Restrictions on Use of Annual Unobligated Balance
in D.C. Crime Victims Compensation Fund. (a) In General.--
Section 16(d) of the Victims of Violent Crime Compensation Act
of 1996 (sec. 3-435(d), D.C. Code), as added by section 160(d)
of the District of Columbia Appropriations Act, 2000, is
amended to read as follows:
``(d) Any unobligated balance existing in the Fund in
excess of $250,000 as of the end of each fiscal year (beginning
with fiscal year 2000) may be used only in accordance with a
plan developed by the District of Columbia and approved by the
Committees on Appropriations of the Senate and House of
Representatives, the Committee on Government Reform of the
House of Representatives, and the Committee on Governmental
Affairs of the Senate, and not less than 80 percent of such
balance shall be used for direct compensation payments to crime
victims through the Fund under this section and in accordance
with this Act.''.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect September 30, 2000.
Sec. 404. (a) Notwithstanding any provision of the District
of Columbia Appropriations Act, 2001, the District of Columbia
may fund the programs identified under the heading ``Reserve''
in H.R. 4942, One Hundred Sixth Congress, as introduced,
subject to the conditions described under such heading and upon
certification by the District of Columbia Financial
Responsibility and Management Assistance Authority to the
Committees on Appropriations of the Senate and House of
Representatives that the Chief Financial Officer of the
District of Columbia, the Mayor of the District of Columbia,
and the Council of the District of Columbia have identified and
implemented such spending reductions as may be necessary to
ensure that the District of Columbia will not have a budget
deficit for fiscal year 2001.
(b)(1) Notwithstanding any provision of the District of
Columbia Appropriations Act, 2001, the use by the District of
the funds described in paragraph (2) for Pay-As-You-Go Capital
Funds shall be optional.
(2) The funds described in this paragraph are funds set
aside for the reserve established by section 202(j) of the
District of Columbia Financial Responsibility and Management
Assistance Act of 1995 (as amended by section 148 of the
District of Columbia Appropriations Act, 2000) which are not
used for purposes of any reserve funds established under the
District of Columbia Appropriations Act, 2001, or any
amendments made by such Act.
(c)(1) The Mayor of the District of Columbia shall deposit
the annual interest savings resulting from debt reductions
using the proceeds of the tobacco securitization program into
the emergency reserve fund established under section 450A of
the District of Columbia Home Rule Act (as added by section 159
of the District of Columbia Appropriations Act, 2001).
(2) This subsection shall apply with respect to fiscal year
2001 and each succeeding fiscal year until the requirements of
section 450A of the District of Columbia Home Rule Act have
been met.
Sec. 405. Notwithstanding any provision of the District of
Columbia Appropriations Act, 2001, quarterly disbursements
shall be calculated and paid to District of Columbia public
charter schools during fiscal year 2001 in accordance with
section 107a(b) of the Uniform Per Student Funding Formula for
Public Schools and Public Charter Schools and Tax Conformity
Clarification Amendment Act of 1998 (sec. 31-2906.1(b), DC
Code), as amended by the Enrollment Integrity Act.
Sec. 406. (a) The provisions of H.R. 5547 (as enacted into
law by H.R. 4942 of the 106th Congress) are repealed and shall
be deemed for all purposes (including section 1(b) of H.R.
4942) to have never been enacted.
(b) The repeal made by this section shall take effect as
if included in H.R. 4942 of the 106th Congress on the date of
its enactment.
CHAPTER 5
ENERGY AND WATER DEVELOPMENT
DEPARTMENT OF DEFENSE--CIVIL
DEPARTMENT OF THE ARMY
Corps of Engineers--Civil
general investigations
For an additional amount for ``General Investigations'',
$900,000, to remain available until expended: Provided, That
$100,000 shall be available for a reconnaissance study of shore
protection needs at North Topsail Beach, North Carolina;
$100,000 shall be available for a reconnaissance study for the
Passiac County, New Jersey, water infrastructure project;
$100,000 shall be available for a reconnaissance study of
flooding, drainage and other related problems in the Cayuga
Creek Watershed, New York; and $600,000 shall be available for
a cost-shared feasibility study of the restoration of the lower
St. Anthony's Falls natural rapids in Minnesota.
construction, general
For an additional amount for ``Construction, General'',
$2,750,000, to remain available until expended: Provided, That
$75,000 shall be available for planning and design of a project
to provide for floodplain evacuation in the watershed of Pond
Creek, Kentucky; $100,000 shall be available for design of
recreation and access features at the Louisville Waterfront
Park in Kentucky; $500,000 shall be available for a Limited
Reevaluation Report for the Central Boca Raton segment of the
Palm Beach County, Florida, shore protection project; and
$75,000 shall be available to conduct research on the
eradication of Eurasian water milfoil at Houghton Lake,
Michigan: Provided further, That the Secretary of the Army,
acting through the Chief of Engineers, is authorized and
directed to use $2,000,000 of the funds appropriated herein to
initiate design and construction of the Hawaii Water Management
Project, including Waiahole Ditch on Oahu, Kau Ditch on Maui,
Pioneer Mill Ditch on Hawaii, and the complex system on the
west side of Kauai: Provided further, That the Secretary of the
Army may use up to $5,000,000 of previously appropriated funds
to carry out the Abandoned and Inactive Noncoal Mine
Restoration program authorized by section 560 of Public Law
106-53.
flood control, mississippi river and tributaries, arkansas, illinois,
kentucky, louisiana, mississippi, missouri, and tennessee
For an additional amount for ``Flood Control, Mississippi
River and Tributaries, Arkansas, Illinois, Kentucky, Louisiana,
Mississippi, Missouri, and Tennessee'', $3,500,000, to remain
available until expended, for prosecuting work of repair,
restoration or maintenance of the Mississippi River levees, and
for the correction of deficiencies in the mainline Mississippi
River levees.
DEPARTMENT OF THE INTERIOR
Bureau of Reclamation
water and related resources
For an additional amount for ``Water and Related
Resources'', $2,000,000, to remain available until expended,
for construction of the Mid-Dakota Rural Water System, in
addition to amounts made available under the Energy and Water
Appropriations Development Act, 2001.
DEPARTMENT OF ENERGY
ENERGY PROGRAMS
Energy Supply
For an additional amount for ``Energy Supply'', $800,000,
to remain available until expended, for the Prime, LLC, of
central South Dakota, for final engineering and project
development of the integrated ethanol complex, including an
ethanol unit, waste treatment system, and enclosed cattle feed
lot.
Science
For an additional amount for ``Science'', $1,000,000, to
remain available until expended, for high temperature
superconducting research and development at Boston College.
CHAPTER 6
General Provisions--This Chapter
Sec. 601. Of the funds appropriated under the heading
Department of State, International Narcotics Control and Law
Enforcement, in the Foreign Operations, Export Financing, and
Related Programs Appropriations Act, 2001, not less than
$1,350,000 shall be available only for the Protection Project
to continue its study of international trafficking,
prostitution, slavery, debt bondage and other abuses of women
and children.
Sec. 602. Embassy Compensation Authority. Funds made
available under the heading ``Other Bilateral Economic
Assistance, Economic Support Fund'' included in the Foreign
Operations, Export Financing, and Related Programs
Appropriations Act, 2001 (Public Law 106-429) may be made
available, notwithstanding any other provision of law, to
provide payment to the government of the People's Republic of
China for property loss and damage arising out of the May 7,
1999 incident in Belgrade, Federal Republic of Yugoslavia.
CHAPTER 7
DEPARTMENT OF THE INTERIOR
Bureau of Land Management
land acquisition
For an additional amount for ``Land Acquisition'',
$5,000,000, to be derived from the Land and Water Conservation
Fund and to remain available until expended, to carry out the
provisions of title VI of the Steens Mountain Cooperative
Management and Protection Act (Public Law 106-399): Provided,
That sums necessary to complete the individual land exchanges
identified under title VI shall be provided within thirty days
of each land exchange.
United States Fish and Wildlife Service
resource management
For an additional amount for ``Resource Management'',
$500,000 for a grant to the Center for Reproductive Biology at
Washington State University.
multinational species conservation fund
For an additional amount for the ``Multinational Species
Conservation Fund'', $750,000, to remain available until
expended, for Great Ape conservation activities authorized by
law.
National Park Service
operation of the national park system
For an additional amount for ``Operation of the National
Park System'', $100,000 for completion of studies related to
the Arlington Boathouse in Virginia.
national recreation and preservation
For an additional amount for ``National Recreation and
Preservation'', $1,600,000, to remain available until expended,
of which $500,000 is for the National Constitution Center in
Philadelphia, Pennsylvania and $1,100,000 is for a grant to the
Historic New Bridge Landing Park Commission.
historic preservation fund
For an additional amount for the ``Historic Preservation
Fund'', $100,000 for a grant to the Massillon Heritage
Foundation, Inc. in Massillon, Ohio.
construction
For an additional amount for ``Construction'', $3,500,000,
to remain available until expended, of which $1,500,000 is for
the Stones River National Battlefield and $2,000,000 is for the
Millennium Cultural Cooperative Park.
DEPARTMENT OF ENERGY
Energy Conservation
For an additional amount for ``Energy Conservation'',
$300,000, to remain available until expended, for a grant to
the Oak Ridge National Laboratory/Nevada Test Site Development
Corporation for the development of (1) cooling, refrigeration,
and thermal energy management equipment capable of using
natural gas or hydrogen fuels; and (2) improvement of the
reliability of heat-activated cooling, refrigeration, and
thermal energy management equipment used in combined heating,
cooling, and power applications.
RELATED AGENCY
Woodrow Wilson International Center for Scholars
payment to endowment fund
For payment to the endowment fund of the Woodrow Wilson
International Center for Scholars $5,000,000: Provided, That
such funds may be invested in investments approved by the Board
of Trustees of the Woodrow Wilson International Center for
Scholars and the income from such investments may be used to
support the programs of the Center that the Board of Trustees
and the Director of the Center determine appropriate.
General Provision--This Chapter
Sec. 701. In addition to amounts appropriated in Public Law
106-291 to the Indian Health Service under the heading ``Indian
Health Services'', $30,000,000, to remain available until
expended, is appropriated as follows:
(1) $15,000,000 shall be provided to the Alaska
Federation of Natives as a direct lump sum payment
within 30 days of enactment of this Act for its Alaska
Native Sobriety and Alcohol Control Program: Provided,
That the President of the Alaska Federation of Natives
shall make grants to each Alaska Native regional non-
profit corporation (as listed in section 103(a)(2) of
Public Law 104-193 (110 Stat. 2159)) in which there are
villages, including established villages and organized
cities under state law, that have voted to ban the
sale, importation, or possession of alcohol pursuant to
local option state law: Provided further, That such
grants shall be used to (1) employ Village Public
Safety Officers (hereinafter referred to as ``VPSO's'')
under such terms and conditions that encourage
retention of such VPSO's and that are consistent with
agreements with the State of Alaska for the provision
of such VPSO services, (2) acquisition of law
enforcement equipment or services, or (3) develop and
implement restorative justice programs recognized under
state sentencing law as a community based complement or
alternative to incarceration or other penalty: Provided
further, That funds may also be used for activities and
programs to further the sobriety movement including
education and treatment. The President of the Alaska
Federation of Natives shall submit a report on its
activities and those of its grantees including
administrative costs and persons served by December 31,
2001; and
(2) $15,000,000 shall be provided to the Indian
Health Service for drug and alcohol prevention and
treatment services for non-Alaska tribes.
CHAPTER 8
General Provisions--This Chapter
Sec. 801. There are appropriated to the Health Resources
and Services Administration in the Department of Health and
Human Services, for the construction of the Biotechnology
Science Center at the Marshall University in Huntington, West
Virginia, $25,000,000, to remain available until expended.
Sec. 802. There are appropriated to the Health Resources
and Services Administration in the Department of Health and
Human Services, for the construction of the Christian Nurses
Hospice in Brentwood, New York, $400,000.
Sec. 803. There are appropriated to the Institute of
Museum and Library Services, for expansion of the marine
biology program at the Long Island Maritime Museum, $250,000.
CHAPTER 9
LEGISLATIVE BRANCH
CONGRESSIONAL OPERATIONS
HOUSE OF REPRESENTATIVES
Payments to Widows and Heirs of Decreased Members of Congress
For payment to Laura Y. Bateman, widow of Herbert H.
Bateman, late a Representative from the State of Virginia,
$141,300.
For payment to Susan L. Vento, widow of Bruce F. Vento,
late a Representative from the State of Minnesota, $141,300.
For payment to Betty Lee Dixon, widow of Julian C. Dixon,
late a Representative from the State of California, $141,300.
ARCHITECT OF THE CAPITOL
Capitol Buildings and Grounds
capitol buildings
salaries and expenses
For an additional amount for ``Capitol Buildings and
Grounds--capitol buildings--salaries and expenses'' for
necessary expenses for construction of emergency egress from
the fourth floor of the Capitol Building, $1,033,000, to remain
available until expended: Provided, That the entire amount is
designated by the Congress as an emergency requirement pursuant
to section 251(b)(2)(A) of the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended.
LIBRARY OF CONGRESS
Salaries and Expenses
For the Library of Congress, $25,000,000, to remain
available until expended, for necessary salaries and expenses
of the National Digital Information Infrastructure and
Preservation Program; and an additional $75,000,000, to remain
available until expended, for such purposes: Provided, That the
portion of such additional $75,000,000, which may be expended
shall not exceed an amount equal to the matching contributions
(including contributions other than money) for such purposes
that (1) are received by the Librarian of Congress for the
program from non-Federal sources, and (2) are received before
March 31, 2003: Provided further, That such program shall be
carried out in accordance with a plan or plans approved by the
Committee on House Administration of the House of
Representatives, the Committee on Rules and Administration of
the Senate, the Committee on Appropriations of the House of
Representatives, and the Committee on Appropriations of the
Senate: Provided further, That of the total amount
appropriated, $5,000,000 may be expended before the approval of
a plan to develop such a plan, and to collect or preserve
essential digital information which otherwise would be
uncollectible: Provided further, That the balance in excess of
such $5,000,000 shall not be expended without approval in
advance by the Committee on Appropriations of the House of
Representatives and the Committee on Appropriations of the
Senate: Provided further, That the plan under this heading
shall be developed by the Librarian of Congress jointly with
entities of the Federal government with expertise in
telecommunications technology and electronic commerce policy
(including the Secretary of Commerce and the Director of the
White House Office of Science and Technology Policy) and the
National Archives and Records Administration, and with the
participation of representatives of other Federal, research,
and private libraries and institutions with expertise in the
collection and maintenance of archives of digital materials
(including the National Library of Medicine, the National
Agricultural Library, the National Institute of Standards and
Technology, the Research Libraries Group, the Online Computer
Library Center, and the Council on Library and Information
Resources) and representatives of private business
organizations which are involved in efforts to preserve,
collect, and disseminate information in digital formats
(including the Open e-Book Forum): Provided further, That
notwithstanding any other provision of law, effective with the
One Hundred Seventh Congress and each succeeding Congress the
chair of the Subcommittee on the Legislative Branch of the
Committee on Appropriations of the House of Representatives
shall serve as a member of the Joint Committee on the Library
with respect to the Library's financial management,
organization, budget development and implementation, and
program development and administration, as well as any other
element of the mission of the Library of Congress which is
subject to the requirements of Federal law.
General Provisions--This Chapter
Sec. 901. Retirement Credit for Certain Legislative Branch
Employees. (a) Former Employees of Congressional Campaign
Committees.--
(1) CSRS.--Section 8332(m) of title 5, United
States Code, as amended by section 312 of the
Legislative Branch Appropriations Act, 2000, is
amended--
(A) by redesignating paragraphs (2) and (3)
as paragraphs (3) and (4); and
(B) by inserting after paragraph (1) the
following new paragraph:
``(2) Upon application to the Office of Personnel
Management, any individual who was an employee on the date of
the enactment of this paragraph, and who has on such date or
thereafter acquires 5 years or more of creditable civilian
service under this section (exclusive of service for which
credit is allowed under this subsection) shall be allowed
credit (as service as a Congressional employee) for service
before December 31, 1990, while employed by the Democratic
Senatorial Campaign Committee, the Republican Senatorial
Campaign Committee, the Democratic National Congressional
Committee, or the Republican National Congressional Committee,
if--
``(A) such employee has at least 4 years and 6
months of service on such committees as of December 31,
1990; and
``(B) such employee makes a deposit to the Fund in
an amount equal to the amount which would be required
under section 8334(c) if such service were service as a
Congressional employee.''.
(2) FERS.--Section 8411 of title 5, United States
Code, is amended by adding at the end the following new
subsection:
``(i)(1) Upon application to the Office of Personnel
Management, any individual who was an employee on the date of
the enactment of this paragraph, and who has on such date or
thereafter acquires 5 years or more of creditable civilian
service under this section (exclusive of service for which
credit is allowed under this subsection) shall be allowed
credit (as service as a Congressional employee) for service
before December 31, 1990, while employed by the Democratic
Senatorial Campaign Committee, the Republican Senatorial
Campaign Committee, the Democratic National Congressional
Committee, or the Republican National Congressional Committee,
if--
``(A) such employee has at least 4 years and 6
months of service on such committees as of December 31,
1990; and
``(B) such employee deposits to the Fund an amount
equal to 1.3 percent of the base pay for such service,
with interest.
``(2) The Office shall accept the certification of the
President of the Senate (or the President's designee) or the
Speaker of the House of Representatives (or the Speaker's
designee), as the case may be, concerning the service of, and
the amount of compensation received by, an employee with
respect to whom credit is to be sought under this subsection.
``(3) An individual shall not be granted credit for such
service under this subsection if eligible for credit under
section 8332(m) for such service.''.
(b) Former Employees of Legislative Service
Organizations.--
(1) Service of employees of legislative service
organizations.--
(A) In general.--Subject to succeeding
provisions of this paragraph, upon application
to the Office of Personnel Management in such
form and manner as the Office shall prescribe,
any individual who performed service as an
employee of a legislative service organization
of the House of Representatives (as defined and
authorized in the One Hundred Third Congress)
and whose pay was paid in whole or in part by a
source other than the Clerk Hire account of a
Member of the House of Representatives (other
than an individual described in paragraph (6))
shall be entitled--
(i) to receive credit under the
provisions of subchapter III of chapter
83 or chapter 84 of title 5, United
States Code (whichever would be
appropriate), as Congressional employee
service, for all such service; and
(ii) to have all pay for such
service which was so paid by a source
other than the Clerk Hire account of a
Member included (in addition to any
amounts otherwise included in basic
pay) for purposes of computing an
annuity payable out of the Civil
Service Retirement and Disability Fund.
(B) Deposit requirement.--In order to be
eligible for the benefits described in
subparagraph (A), an individual shall be
required to pay into the Civil Service
Retirement and Disability Fund an amount equal
to the difference between--
(i) the employee contributions that
were actually made to such Fund under
applicable provisions of law with
respect to the service described in
subparagraph (A); and
(ii) the employee contributions
that would have been required with
respect to such service if the amounts
described in subparagraph (A)(ii) had
also been treated as basic pay.
The amount required under this subparagraph
shall include interest, which shall be computed
under section 8334(e) of title 5, United States
Code.
(C) Certain offsets required in order to
prevent double contributions and benefits.--In
the case of any period of service as an
employee of a legislative service organization
which constituted employment for purposes of
title II of the Social Security Act--
(i) any pay for such service (as
described in subparagraph (A)(ii)) with
respect to which the deposit under
subparagraph (B) would otherwise be
computed by applying the first sentence
of section 8334(a)(1) of title 5,
United States Code, shall instead be
computed in a manner based on section
8334(k) of such title; and
(ii) any retirement benefits under
subchapter III of chapter 83 of title
5, United States Code, shall be subject
to offset (to reflect that portion of
benefits under title II of the Social
Security Act attributable to pay
referred to in subparagraph (A))
similar to that provided for under
section 8349 of such title.
(2) Survivor annuitants.--For purposes of survivor
annuities, an application authorized by this section
may, in the case of an individual under paragraph (1)
who has died, be made by a survivor of such individual.
(3) Recomputation of annuities.--Any annuity or
survivor annuity payable as of when an individual makes
the deposit required under paragraph (1) shall be
recomputed to take into account the crediting of
service under such paragraph for purposes of amounts
accruing for any period beginning on or after the date
on which the individual makes the deposit.
(4) Certification of speaker.--The Office of
Personnel Management shall accept the certification of
the Speaker of the House of Representatives (or the
Speaker's designee) concerning the service of, and the
amount of compensation received by, an employee with
respect to whom credit is to be sought under this
subsection.
(5) Notification and other duties of the office of
personnel management.--
(A) Notice.--The Office of Personnel
Management shall take such action as may be
necessary and appropriate to inform individuals
of any rights they might have as a result of
the enactment of this subsection.
(B) Assistance.--The Office shall, on
request, assist any individual in obtaining
from any department, agency, or other
instrumentality of the United States any
information in the possession of such
instrumentality which may be necessary to
verify the entitlement of such individual to
have any service credited under this subsection
or to have an annuity recomputed under
paragraph (3).
(C) Information.--Any department, agency,
or other instrumentality of the United States
which possesses any information with respect to
an individual's performance of any service
described in paragraph (1) shall, at the
request of the office, furnish such information
to the Office.
(6) Exclusion of certain employees.--An individual
is not eligible for credit under this subsection if the
individual served as an employee of the House of
Representatives for an aggregate period of 5 years or
longer after the individual's final period of service
as an employee of a legislative service organization of
the House of Representatives.
(7) Member defined.--In this subsection, the term
``Member of the House of Representatives'' includes a
Delegate or Resident Commissioner to the Congress.
Sec. 902. (a) The Legislative Branch Appropriations Act,
2001 is amended under the subheading ``miscellaneous items''
under the heading ``SENATE'' under title I by striking
``$8,655,000'' and inserting ``$25,155,000''.
(b) The amendment made by subsection (a) shall take effect
as if included in the enactment of the Legislative Branch
Appropriations Act, 2001.
Sec. 903. Beginning on the first day of the 107th Congress,
the Presiding Officer of the Senate shall apply all of the
precedents of the Senate under Rule XXVIII in effect at the
conclusion of the 103rd Congress. Further that there is now in
effect a Standing order of the Senate that the reading of
conference reports is no longer required, if the said
conference report is available in the Senate.
CHAPTER 10
General Provisions--This Chapter
Sec. 1001. In addition to amounts appropriated or otherwise
made available in the Military Construction Appropriations Act,
2001, $43,500,000 is hereby appropriated to the Department of
Defense, to remain available until September 30, 2005, as
follows:
``Military Construction, Army'', $27,000,000;
``Military Construction, Air Force'', $12,000,000;
``Military Construction, Army National Guard'',
$4,500,000:
Provided, That notwithstanding any other provision of law, such
funds may be obligated or expended to carry out planning and
design, military construction, and family housing projects not
otherwise authorized by law.
Sec. 1002. Transfer of Jurisdiction, Melrose Air Force
Range, New Mexico. (a) Transfer Required.--(1) The Secretary of
the Interior shall transfer, without reimbursement, to the
administrative jurisdiction of the Secretary of the Air Force
the surface estate in the real property described in paragraph
(2), which consists of 6,713.90 acres of public domain lands in
Roosevelt County, New Mexico.
(2) The transfer of administrative jurisdiction under
paragraph (1) encompasses the following sections (or portions
thereof):
(A) In Township 1 North, Range 30 East, New Mexico
Prime Meridian:
(i) Sec. 2 (S\1/2\).
(ii) Sec. 11. All.
(iii) Sec. 20 (S\1/2\SE\1/4\).
(iv) Sec. 28. All.
(B) In Township 1 South, Range 30 East, New Mexico
Prime Meridian:
(i) Sec. 2 (Lots 1-12, S\1/2\).
(ii) Sec. 3 (Lots 1-12, S\1/2\).
(iii) Sec. 4 (Lots 1-12, S\1/2\).
(iv) Sec. 6 (Lots 1 and 2).
(v) Sec. 9 (N\1/2\, N\1/2\S\1/2\).
(vi) Sec. 10 (N\1/2\, N\1/2\S\1/2\).
(vii) Sec. 11 (N\1/2\, N\1/2\S\1/2\).
(C) In Township 2 North, Range 30 East, New Mexico
Prime Meridian:
(i) Sec. 20 (E\1/2\S\1/4\).
(ii) Sec. 21 (SW\1/4\, W\1/2\SE\1/4\).
(iii) Sec. 28 (W\1/2\E\1/2\, W\1/2\).
(iv) Sec. 29 (E\1/2\E\1/2\).
(v) Sec. 32 (E\1/2\E\1/2\).
(vi) Sec. 33 (W\1/2\E\1/2\, NW\1/4\, S\1/
2\SW\1/4\).
(b) Status of Surface Estate.--Upon transfer under
subsection (a), the surface estate is deemed to be real
property subject to the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 471 et seq.).
(c) Withdrawal of Mineral Estate.--Subject to valid
existing rights, the mineral estate of the lands described in
subsection (a) are withdrawn from all forms of appropriation
under the public land laws, including the mining laws and the
mineral and geothermal leasing laws, but not the Act of July
31, 1947 (commonly known as the Materials Act of 1947; 30
U.S.C. 601 et seq.).
(d) Use of Mineral Materials.--Notwithstanding subsection
(c) or the Act of July 31, 1947, the Secretary of the Air Force
may use, without application to the Secretary of the Interior,
the sand, gravel, or similar mineral material resources on the
lands described in subsection (a), of the type subject to
disposition under the Act of July 31, 1947, when the use of
such resources is required for construction needs on the
Melrose Air Force Range, New Mexico.
Sec. 1003. Transfer of Jurisdiction, Yakima Training
Center, Washington. (a) Transfer Required.--(1) The Secretary
of the Interior shall transfer, without reimbursement, to the
administrative jurisdiction of the Secretary of the Army the
surface estate in the real property described in paragraph (2),
which consists of 6,640.02 acres of public domain lands in
Kittitas County, Washington.
(2) The transfer of administrative jurisdiction under
paragraph (1) encompasses the following sections (or portions
thereof):
(A) In Township 17 North, Range 20 East, Willamette
Meridian:
(i) Sec. 22 (S\1/2\).
(ii) Sec. 24 (S\1/2\SW\1/4\ and that
portion of the E\1/2\ lying south of the
Interstate Highway 90 right-of-way).
(iii) Sec. 26. All.
(B) In Township 16 North, Range 21 East, Willamette
Meridian:
(i) Sec. 4 (SW\1/4\SW\1/4\).
(ii) Sec. 12 (SE\1/4\).
(iii) Sec. 18 (Lots 1, 2, 3, and 4, E\1/2\
and E\1/2\W\1/2\).
(C) In Township 17 North, Range 21 East, Willamette
Meridian:
(i) Sec. 30 (Lots 3 and 4).
(ii) Sec. 32 (NE\1/4\SE\1/4\).
(D) In Township 16 North, Range 22 East, Willamette
Meridian:
(i) Sec. 2 (Lots 1, 2, 3, and 4, S\1/2\N\1/
2\ and S\1/2\).
(ii) Sec. 4 (Lots 1, 2, 3, and 4, S\1/
2\N\1/2\ and S\1/2\).
(iii) Sec. 10. All.
(iv) Sec. 14. All.
(v) Sec. 20 (SE\1/4\SW\1/4\).
(vi) Sec. 22. All.
(vii) Sec. 26 (N\1/2\).
(viii) Sec. 28 (N\1/2\).
(E) In Township 16 North, Range 23 East, Willamette
Meridian:
(i) Sec. 18 (Lots 3 and 4, E\1/2\SW\1/4\,
W\1/2\SE\1/4\, and that portion of the E\1/
2\SE\1/4\ lying westerly of the westerly right-
of-way line of Huntzinger Road).
(ii) Sec. 20 (That portion of the SW\1/4\
lying westerly of the easterly right-of-way
line of the railroad).
(iii) Sec. 30 (Lots 1 and 2, NE\1/4\ and
E\1/2\NW\1/4\).
(b) Status of Surface Estate.--Upon transfer under
subsection (a), the surface estate is deemed to be real
property subject to the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 471 et seq.).
(c) Withdrawal of Mineral Estate.--(1) Subject to valid
existing rights, the mineral estate of the lands described in
subsection (a), as well as the additional lands described in
paragraph (2), are withdrawn from all forms of appropriation
under the public land laws, including the mining laws and the
geothermal leasing laws, but not the Act of July 31, 1947
(commonly known as the Materials Act of 1947; 30 U.S.C. 601, et
seq.) and the Mineral Leasing Act (30 U.S.C. 181 et seq.):
(2) The additional lands referred to in paragraph (1)
consist of 3,090.80 acres in the following sections (or
portions thereof):
(A) In Township 16 North, Range 20 East, Willamette
Meridian:
(i) Sec. 12. All.
(ii) Sec. 18 (Lot 4 and SE\1/4\).
(iii) Sec. 20 (S\1/2\).
(B) In Township 16 North, Range 21 East, Willamette
Meridian:
(i) Sec. 4 (Lots 1, 2, 3, and 4, S\1/
2\NE\1/4\).
(ii) Sec. 8. All.
(C) In Township 16 North, Range 22 East, Willamette
Meridian:
(i) Sec. 12. All.
(D) In Township 17 North, Range 21 East, Willamette
Meridian:
(i) Sec. 32 (S\1/2\SE\1/4\).
(ii) Sec. 34 (W\1/2\).
(d) Use of Mineral Materials.--Notwithstanding subsection
(c) or the Act of July 31, 1947, the Secretary of the Army may
use, without application to the Secretary of the Interior, the
sand, gravel, or similar mineral material resources on the
lands described in subsections (a) and (c), of the type subject
to disposition under the Act of July 31, 1947, when the use of
such resources is required for construction needs on the Yakima
Training Center, Washington.
CHAPTER 11
DEPARTMENT OF TRANSPORTATION
General Provisions--This Chapter
Sec. 1101. Section 5309(g)(4)(D)(2) of title 49, United
States Code, is amended by striking ``light''.
Sec. 1102. Item number 630 of the table contained in
section 1602 of the Transportation Act for the 21st Century
(112 Stat. 280), relating to Buffalo, New York, is amended by
striking ``Design and construct Outer Harbor Bridge in
Buffalo'' and inserting ``Transportation infrastructure
improvements, Inner Harbor/Redevelopment project, Buffalo''.
Sec. 1103. If the State of Arkansas incorporates into the
relocation of U.S. Route 71 through Fort Chaffee, Arkansas,
land obtained by the State from the Federal Government as a
result of the closure of a military installation, the Secretary
of Transportation shall credit to the State share of the cost
of the relocation the fair market value of such land .
Sec. 1104. For an additional amount to enable the Secretary
of Transportation to make a grant to the Huntsville
International Airport, $2,500,000, to be derived from the
airport and airway trust fund, to remain available until
expended.
Sec. 1105. Notwithstanding any other provision of law, for
necessary expenses for the Southeast Light Rail Extension
Project in Dallas, Texas, $1,000,000, to be derived from the
Mass Transit Account of the Highway Trust Fund and to remain
available until expended.
Sec. 1106. Section 1105(c) of the Intermodal Surface
Transportation Efficiency Act of 1991 (105 Stat. 2032-2033) is
amended by striking paragraph (38) and replacing it with the
following--
``(38) The Ports-to-Plains Corridor from Laredo,
Texas, via I-27 to Denver, Colorado, shall include:
``(A) In the State of Texas the Ports-to-
Plains Corridor shall generally follow--
``(i) I-35 from Laredo to United
States Route 83 at Exit 18;
``(ii) United States Route 83 from
Exit 18 to Carrizo Springs;
``(iii) United States Route 277
from Carrizo Springs to San Angelo;
``(iv) United States Route 87 from
San Angelo to Sterling City;
``(v) From Sterling City to Lamesa,
the Corridor shall follow United States
Route 87 and, the corridor shall also
follow Texas Route 158 from Sterling
City to I-20, then via I-20 West to
Texas Route 349 and, Texas Route 349
from Midland to Lamesa;
``(vi) United States Route 87 from
Lamesa to Lubbock;
``(vii) I-27 from Lubbock to
Amarillo; and
``(viii) United States Route 287
from Amarillo to Dumas.
``(B) The corridor designation contained in
paragraph (A) shall take effect only if the
Texas Transportation Commission has not
designated the Ports-to-Plains Corridor in
Texas by June 30, 2001.''.
Sec. 1107. For an additional amount to enable the Secretary
of Transportation to make a grant for the Newark-Elizabeth rail
link project, New Jersey, $3,000,000, to be derived from the
Mass Transit Account of the Highway Trust Fund and to remain
available until expended.
Sec. 1108. Section 5309(m)(3)(C) of Title 49 United States
Code shall not apply to the funds made available in the
Department of Transportation and Related Agencies
Appropriations Act, 2001: Provided, That notwithstanding any
other provision of law, the 14th Street Bridge, Virginia;
Chouteau Bridge, Jackson County, Missouri; Clement C. Clay
Bridge replacement, Morgan/Madison counties, Alabama;
Fairfield-Benton-Kennebec River Bridge, Maine; Florida Memorial
Bridge, Florida; Historic Woodrow Wilson Bridge, Mississippi;
Missisquoi Bay Bridge, Vermont; Oaklawn Bridge, South Pasadena,
California; Pearl Harbor Memorial Bridge replacement,
Connecticut; Powell County Bridge, Montana; Santa Clara Bridge,
Oxnard, California; Star City Bridge, West Virginia; US 231
Bridge over Tennessee River, Alabama; US 54/US 69 Bridge,
Kansas; Waimalu Bridge replacement on I-1, Hawaii; Washington
Bridge, Rhode Island are eligible in fiscal year 2001 under
section 144(g)(2) of title 23, United States Code: Provided
further, That section 378 of Public Law 106-346 is amended by
inserting after ``US 101'' the following: ``and Interstate 5
Trade Corridor''.
Sec. 1109. Notwithstanding any other provision of law, in
addition to funds otherwise appropriated in this or any other
Act for fiscal year 2001, $4,000,000 is hereby appropriated
from the Highway Trust Fund for Commercial Remote Sensing
Products and Spatial Information Technologies under section
5113 of Public Law 105-178, as amended: Provided, That such
funds are used to study the creation of a new highway right of
way south of I-10 along the Mississippi Gulf Coast by
relocating the existing railroad right of way out of downtown
areas.
Sec. 1110. Amtrak is authorized to obtain services from the
Administrator of General Services, and the Administrator is
authorized to provide services to Amtrak, under sections 201(b)
and 211(b) of the Federal Property and Administrative Services
Act of 1949 (40 U.S.C. 481(b) and 491(b)) for fiscal year 2001
and each fiscal year thereafter until the fiscal year that
Amtrak operates without Federal operating grant funds
appropriated for its benefit, as required by sections 24101(d)
and 24104(a) of title 49, United States Code.
Sec. 1111. Of the funds made available in the ``Alteration
of bridges'' account of the Department of Transportation and
Related Agencies Appropriations Act, 2001 for the Fox River
Bridge, $575,000 shall be transferred by the Secretary of
Transportation to the City of Oshkosh for removal of the bridge
located at mile point 56.9 of the Fox River in Oshkosh,
Wisconsin. The United States shall assume no responsibility for
project management relating to removal of the bridge.
Sec. 1112. Notwithstanding section 27 of the Merchant
Marine Act, 1920 (46 App. U.S.C. 883), section 8 of the Act of
June 19, 1886 (46 App. U.S.C. 289), and section 12106 of title
46, United States Code, the Secretary of Transportation may
issue a certificate of documentation with appropriate
endorsement for employment in the coastwise trade for the
following vessels:
(1) M/V WELLS GRAY (State of Alaska registration
number AK 9452 N; former Canadian registration number
154661); and
(2) ANNANDALE (United States official number
519434).
Sec. 1113. Conveyance of Coast Guard Property in
Middletown, California. (a) Authority To Convey.--
(1) In general.--The Administrator of General
Services (in this section referred to as the
``Administrator'') may promptly convey to Lake County,
California (in this section referred to as the
``County''), without consideration, all right, title,
and interest of the United States (subject to
subsection (c)) in and to the property described in
subsection (b).
(2) Identification of property.--The Administrator,
in consultation with the Commandant of the Coast Guard,
may identify, describe, and determine the property to
be conveyed under this section.
(b) Property Described.--
(1) In general.--The property referred to in
subsection (a) is such portion of the Coast Guard LORAN
Station Middletown as has been reported to the General
Services Administration to be excess property,
consisting of approximately 733.43 acres, and is
comprised of all or part of tracts A-101, A-102, A-104,
A-105, A-106, A-107, A-108, and A-111.
(2) Survey.--The exact acreage and legal
description of the property conveyed under subsection
(a), and any easements or rights-of-way reserved by the
United States under subsection (c)(1), shall be
determined by a survey satisfactory to the
Administrator. The cost of the survey shall be borne by
the County.
(c) Conditions.--
(1) In general.--In making the conveyance under
subsection (a), the Administrator shall--
(A) reserve for the United States such
existing rights-of-way for access and such
easements as are necessary for continued
operation of the LORAN station;
(B) preserve other existing easements for
public roads and highways, public utilities,
irrigation ditches, railroads, and pipelines;
and
(C) impose such other restrictions on use
of the property conveyed as are necessary to
protect the safety, security, and continued
operation of the LORAN station.
(2) Firebreaks and fence.--(A) The Administrator
may not convey any property under this section unless
the County and the Commandant of the Coast Guard enter
into an agreement with the Administrator under which
the County is required, in accordance with design
specifications and maintenance standards established by
the Commandant--
(i) to establish and construct within 6
months after the date of the conveyance, and
thereafter to maintain, firebreaks on the
property to be conveyed; and
(ii) construct within 6 months after the
date of conveyance, and thereafter maintain, a
fence approved by the Commandant along the
property line between the property conveyed and
adjoining Coast Guard property.
(B) The agreement shall require that--
(i) the County shall pay all costs of
establishment, construction, and maintenance of
firebreaks under subparagraph (A)(i); and
(ii) the Commandant shall provide all
materials needed to construct a fence under
subparagraph (A)(ii), and the County shall pay
all other costs of construction and maintenance
of the fence.
(3) Covenants appurtenant.--The Administrator shall
take actions necessary to render the requirement to
establish, construct, and maintain firebreaks and a
fence under paragraph (2) and other requirements and
conditions under paragraph (1), under the deed
conveying the property to the County, covenants that
run with the land for the benefit of land retained by
the United States.
(d) Reversionary Interest.--During the five-year period
beginning on the date the Administrator makes the conveyance
authorized by subsection (a), the real property conveyed
pursuant to this section, at the option of the Administrator,
shall revert to the United States and be placed under the
administrative control of the Administrator, if--
(1) the County sells, conveys, assigns, exchanges,
or encumbers the property conveyed or any part thereof;
(2) the County fails to maintain the property
conveyed in a manner consistent with the terms and
conditions in subsection (c);
(3) the County conducts any commercial activities
at the property conveyed, or any part thereof, without
approval of the Secretary; or
(4) at least 30 days before the reversion, the
Administrator provides written notice to the owner that
the property or any part thereof is needed for national
security purposes.
Sec. 1114. Conveyance of Coast Guard Property to Town of
Nantucket, Massachusetts. (a) Authority to Convey.--
(1) In general.--Notwithstanding any other law, the
Administrator of the General Services Administration
(Administrator) or the Commandant of the Coast Guard
(Commandant), as appropriate, shall convey to the Town
of Nantucket, Massachusetts (Town), without monetary
consideration, all right, title, and interest of the
United States of America (United States) in and to a
certain parcel of land located in Nantucket,
Massachusetts, and part of United States Coast Guard
LORAN Station Nantucket, together with any improvements
thereon in their then current condition.
(2) Identification of property.--The Administrator
or the Commandant, as appropriate, shall identify,
describe, and determine the property to be conveyed
under this section. The Town shall bear all monetary
costs associated with any survey required to describe
the property to be conveyed under this section and any
easements reserved by the United States under
subsection (b)(1).
(b) Terms and Conditions of Conveyance.--
(1) The conveyance of property under this section
shall be made subject to any terms and conditions the
Administrator or the Commandant, as appropriate,
considers necessary, including the reservation of
easements and other rights on behalf of the United
States, to ensure that--
(A) there is reserved to the United States
the right to remove, relocate, or replace any
aid to navigation located upon, or install or
construct any aid to navigation upon, property
conveyed under this section as may be necessary
for navigational purposes;
(B) the United States shall have the right
to enter property conveyed under this section
at any time, without notice, for purposes of
operating, maintaining, and inspecting any aid
to navigation and for the purposes of
exercising any of the rights set forth in
paragraph (1)(A) of this subsection; and
(C) the Town shall not interfere or allow
interference, in any manner, with any aid to
navigation, whether located upon the property
conveyed under this section or upon any portion
of LORAN Station Nantucket retained by the
United States, nor hinder activities required
for the inspection, operation, and maintenance
of any such aid to navigation without the
Commandant's express written permission.
(2) The Town shall not convey, assign, exchange, or
in any way encumber the property conveyed under this
section, unless approved by the Administrator.
(3) The Town shall not conduct any commercial
activities at or upon the property conveyed under this
section, unless approved by the Administrator.
(4) The Town shall not be required to maintain any
active aid to navigation associated with the property
conveyed under this section except for private aids to
navigation permitted under 14 U.S.C. Sec. 83.
(5) The United States shall not convey any property
under this section, nor grant any real property license
under subsection (d), until the Town enters into an
agreement with the United States to relocate the Coast
Guard receiving antenna and associated equipment, as
identified by the Commandant, at the Town's sole cost
and expense, and subject to the Commandant's design
specifications, project schedule, and final project
approval.
(6) The United States shall not convey any property
under this section, nor grant any real property license
under subsection (d), until the Town enters into an
agreement with the United States that provides that the
Town will immediately cease construction or operation
of the waste water treatment facility upon notification
by the Commandant that the Town's construction or
operation of the facility interferes with any Coast
Guard aid to navigation. The agreement shall provide
that construction or operation shall not be resumed
until the conditions causing the interference are
corrected, and the Commandant authorizes the
construction or operation to resume.
(7) All conditions placed with the deed of title
shall be construed as covenants running with the land.
(c) Reversionary Interest.--In addition to any term or
condition established pursuant to this section, the conveyance
of property under this section shall include a condition that
the property conveyed, at the option of the Administrator,
shall revert to the United States and be placed under the
administrative control of the Administrator, if--
(1) the Town conveys, assigns, exchanges, or in any
manner encumbers the property conveyed for
consideration, unless otherwise approved by the
Administrator;
(2) the Town conducts any commercial activities at
or upon the property conveyed, unless otherwise
approved by the Administrator;
(3) the Town interferes or allows interference, in
any manner, with any aid to navigation, whether located
upon the property conveyed under this section or upon
any portion of LORAN Station Nantucket retained by the
United States, nor hinder activities required for the
inspection, operation, and maintenance of any such aid
to navigation without the Commandant's express written
permission; or
(4) at least 30 days before the reversion, the
Administrator provides written notice to the grantee
that property conveyed under this section, or any
portion thereof, is needed for national security
purposes.
(d) Real Property License.--Prior to the conveyance of any
property under this section, the Commandant may grant a real
property license to the Town for the purpose of allowing the
Town to enter upon LORAN Station Nantucket and commence
construction of a waste water treatment facility and for other
site preparation activities.
(e) Definitions.--For purposes of this section:
(1) Aid to navigation.--The term ``aid to
navigation'' means equipment used for navigation
purposes, including but not limited to, a light,
antenna, sound signal, electronic and radio navigation
equipment and signals, cameras, sensors, or other
equipment operated or maintained by the United States.
(2) Town.--The term ``Town'' includes the
successors and assigns of the Town of Nantucket,
Massachusetts.
Sec. 1115. Conveyance of Plum Island Lighthouse,
Newburyport, Massachusetts. (a) Authority to Convey.--
(1) In general.--Notwithstanding any other law, the
Administrator of the General Services Administration
(Administrator) or the Commandant of the Coast Guard
(Commandant), as appropriate, shall convey to the City
of Newburyport, Massachusetts (City), without monetary
consideration, all right, title, and interest of the
United States of America (United States) in and to two
certain parcels of land upon which the Plum Island Boat
House and the Plum Island Lighthouse (also known as the
Newburyport Harbor Light), are situated, respectively,
located in Essex County, Massachusetts, together with
any improvements thereon in their then current
condition.
(2) Identification of property.--The Administrator
or the Commandant, as appropriate, shall identify,
describe, and determine the property to be conveyed
under this section, including the right to retain all
right, title, and interest of the United States to any
portion of either parcel described in paragraph (a)(1)
of this section. The Administrator or Commandant, as
appropriate, may retain all right, title, and interest
of the United States in and to any historical artifact,
including any lens or lantern, that is associated with
and located at the property conveyed under this section
at the time of conveyance. Artifacts associated with,
but not located at, the property conveyed under this
section at the time of conveyance, shall remain the
personal property of the United States under the
administrative control of the Commandant. No submerged
lands shall be conveyed under this section.
(b) Terms and Conditions of Conveyance.--
(1) The conveyance of property under this section
shall be made subject to any terms and conditions the
Administrator or the Commandant, as appropriate,
considers necessary, including but not limited to, the
reservation of easements and other rights on behalf of
the United States, to ensure that--
(A) the aids to navigation located at
property conveyed under this section shall
remain the personal property of the United
States and continue to be operated and
maintained by the United States for as long as
needed for navigational purposes;
(B) there is reserved to the United States
the right to remove, relocate, or replace any
aid to navigation located upon, or install or
construct any aid to navigation upon, property
conveyed under this section as may be necessary
for navigational purposes;
(C) the United States shall have the right
to enter property conveyed under this section
at any time, without notice, for purposes of
operating, maintaining, and inspecting any aid
to navigation, for the purposes of exercising
any of the rights set forth in paragraph (1)(B)
of this subsection, and for the purposes of
ingress and egress to any land retained by the
United States; and
(D) the City shall not, without the
Commandant's express written permission,
interfere or allow interference, in any manner,
with any aid to navigation, nor hinder
activities required
(i) for the inspection, operation,
and maintenance of any aid to
navigation; or
(ii) for the exercise of any of the
rights set forth in paragraph (1)(B) of
this subsection.
(2) The City shall, at its own cost and expense,
maintain the property conveyed under this section in a
proper, substantial, and workmanlike manner.
(3) The City shall ensure that the property
conveyed is available and accessible to the public, on
a reasonable basis for educational, park, recreational,
cultural, historic preservation or similar purposes.
(4) The City shall not be required to maintain any
active aid to navigation associated with the property
conveyed under this section except for private aids to
navigation permitted under 14 U.S.C. Sec. 83.
(5) All conditions placed with the deed of title
for property conveyed under this section shall be
construed as covenants running with the land.
(6) The Administrator or the Commandant, as
appropriate, may require such additional terms and
conditions with respect to the conveyance of property
under this section, as the Administrator or the
Commandant considers appropriate to protect the
interests of the United States.
(c) Reversionary Interest.--In addition to any term or
condition established pursuant to this section, any property
conveyed under this section, at the option of the
Administrator, shall revert to the United States and be placed
under the administrative control of the Administrator, if--
(1) the property conveyed under this section, or
any part thereof, ceases to be maintained in a manner
that ensures its present or future use as a site for an
aid to navigation as determined by the Commandant;
(2) the property conveyed under this section, or
any part thereof, ceases to be available and accessible
to the public, on a reasonable basis, for educational,
park, recreational, cultural, historic preservation or
similar purposes; or
(3) at least 30 days before the reversion, the
Administrator provides written notice to the grantee
that property conveyed under this section, or any
portion thereof, is needed for national security
purposes.
(d) Definitions.--For purposes of this section:
(1) Aid to navigation.--The term ``aid to
navigation'' means equipment used for navigation
purposes, including but not limited to, a light,
antenna, sound signal, electronic and radio navigation
equipment and signals, cameras, sensors, or other
equipment operated or maintained by the United States.
(2) City.--The term ``City'' includes the
successors and assigns of the City of Newburyport,
Massachusetts.
Sec. 1116. Transfer of Coast Guard Station Scituate to the
National Oceanic and Atmospheric Administration. (a) Authority
to Transfer.--
(1) In general.--The Administrator of the General
Services Administration, in consultation with the
Commandant, United States Coast Guard, may transfer
without consideration administrative jurisdiction,
custody, and control over the Federal property known as
Coast Guard Station Scituate to the National Oceanic
and Atmospheric Administration (hereinafter referred to
as ``NOAA'').
(2) Identification of property.--The Administrator,
in consultation with the Commandant, may identify,
describe, and determine the property to be transferred
under this section.
(b) Terms of Transfer.--
(1) The transfer of the property shall be made
subject to any conditions and reservations the
Commandant considers necessary to ensure that--
(A) the transfer of the property to NOAA is
contingent upon the relocation of Coast Guard
Station Scituate to a suitable site;
(B) there is reserved to the Coast Guard
the right to remove, relocate, or replace any
aid to navigation located upon, or install any
aid to navigation upon, the property
transferred under this section as may be
necessary for navigational purposes; and
(C) the Coast Guard shall have the right to
enter the property transferred under this
section at any time, without notice, for
purposes of operating, maintaining, and
inspecting any aid to navigation.
(2) The transfer of the property shall be made
subject to the review and acceptance of the property by
NOAA.
(c) Relocation of Station Scituate.--The Coast Guard may--
(1) lease land, including unimproved or vacant
land, for a term not to exceed 20 years, for the
purpose of relocating Coast Guard Station Scituate; and
(2) improve the land leased under this subsection.
Sec. 1117. Extension of Interim Authority for Dry Bulk
Cargo Residue Disposal. (a) Section 415(b)(2) of the Coast
Guard Authorization Act of 1998 is amended by striking ``2002''
and inserting ``2004''.
(b) The Secretary shall conduct a study of the
effectiveness of the United States 1997 Enforcement Policy for
Cargo Residues on the Great Lakes (``Policy'') by September 30,
2002.
(c) The Secretary is authorized to promulgate regulations
to implement and enforce a program to regulate incidental
discharges from vessels of residues of non-hazardous and non-
toxic dry bulk cargo into the waters of the Great Lakes, which
takes into account the finding in the study required under
subsection (b). This program shall be consistent with the
Policy.
Sec. 1118. Great Lakes Pilotage Advisory Committee. Section
9307 of title 46, United States Code, is amended--
(1) by amending subparagraph (A) of subsection
(b)(2) to read as follows:
``(A) The President of each of the 3 Great
Lakes pilotage districts, or the President's
representative;'';
(2) by amending subparagraph (E) of subsection
(b)(2) to read as follows:
``(E) a member with a background in finance
or accounting, who--
``(i) must have been recommended to
the Secretary by a unanimous vote of
the other members of the Committee, and
``(ii) may be appointed without
regard to requirement in paragraph (1)
that each member have 5 years of
practical experience in maritime
operations.'';
(3) in subsection (C)(2) by striking the second
sentence;
(4) by adding at the end of subsection (d) the
following new paragraph:
``(3) Any recommendations to the Secretary under
subsection (a)(2) must have been approved by at least
all but one of the members then serving on the
committee.''; and
(5) in subsection (f)(1) by striking ``September
30, 2003'' and inserting ``September 30, 2005''.
Sec. 1119. Vessel Escort Operations and Towing Assistance.
(a) In General.--Except in the case of a vessel in distress,
only a vessel of the United States (as that term is defined in
section 2101 of title 46, United States Code) may perform the
following vessel escort operations and vessel towing assistance
within the navigable waters of the United States:
(1) Operations or assistance that commences or
terminates at a port or place in the United States.
(2) Operations or assistance required by United
States law or regulation.
(3) Operations provided in whole or in part for the
purpose of escorting or assisting a vessel within or
through navigation facilities owned, maintained, or
operated by the United States Government or the
approaches to such facilities, other than facilities
operated by the St. Lawrence Seaway Development
Corporation on the St. Lawrence River portion of the
Seaway.
(b) Definitions.--Unless otherwise defined by a provision
of law or regulation requiring that towing assistance or escort
be rendered to vessels transiting United States waters or
navigation facilities, for purposes of this section--
(1) the term ``towing assistance'' means operations
by an assisting vessel in direct contact with an
assisted vessel (including hull-to-hull, by towline,
including if only pre-tethered, or made fast to that
vessel by 1 or more lines) for purposes of exerting
force on the assisted vessel to control or to assist in
controlling the movement of the assisted vessel; and
(2) the term ``escort operations'' means
accompanying a vessel for the purpose of providing
towing or towing assistance to the vessel.
Sec. 1120. Notwithstanding any other provision of law, the
Commandant of the United States Coast Guard is hereby
authorized to utilize $100,000 of the amounts made available
for fiscal year 2001 for environmental compliance and
restoration of Coast Guard facilities to reimburse the owner of
the former Coast Guard lighthouse facility at Cape May, New
Jersey, for costs incurred for clean-up of lead contaminated
soil at that facility.
Sec. 1121. Notwithstanding any other provision of law,
$2,400,000, to be derived from the Highway Trust Fund, shall be
available for planning, development and construction of rural
farm-to-market roads in Tulare County, California: Provided,
That the non-federal share of such improvements shall be twenty
percent.
Sec. 1122. Notwithstanding any other provision of law, and
subject to the availability of funds appropriated specifically
for the project, the Coast Guard is authorized to transfer
funds in an amount not to exceed $200,000 and project
management authority to the Traverse City Area Public School
District for the purposes of demolition and removal of the
structure commonly known as ``Building 402'' at former Coast
Guard property located in Traverse City, Michigan, and
associated site work. No such funds shall be transferred until
the Coast Guard receives a detailed, fixed price estimate from
the School District describing the nature and cost of the work
to be performed, and the Coast Guard shall transfer only that
amount of funds it and the School District consider necessary
to complete the project.
Sec. 1123. Notwithstanding any other provision of law, for
necessary expenses for Alabama A&M University buses and bus
facilities, $500,000, to be derived from the Mass Transit
Account of the Highway Trust Fund and to remain available until
expended.
Sec. 1124. Notwithstanding any other provision of law,
prior to the fiscal year 2002 apportionment of ``Fixed Guideway
Modernization'' funds authorized under section 5309(a)(1)(E) of
Title 49, United States Code, $7,047,502 of funds made
available in fiscal year 2002 by section 5338(b) of 49 United
States Code for the ``Fixed Guideway Modernization'' program
shall be distributed by the Federal Transit Administration to
an urbanized area over 200,000 that did not receive amounts of
fixed guideway modernization formula grants to which such area
was lawfully entitled for fiscal years 1999-2001 in view of
eligibility determinations made under 49 United States Code
Chapter 53 during the six months prior to the effective date of
this act: Provided, That such sums shall not reduce a grantee's
fiscal year 2002 apportionment level of ``Fixed Guideway
Modernization'' funds: Provided further, That such sum remain
available until expended.
Sec. 1125. Notwithstanding any other provision of law,
Airport Improvement Program Formula Changes provided in Public
Law 106-181 and defined in Section 104 of that Act shall be
applied regardless of funding levels made available under
Section 48103 of title 49, United States Code.
Sec. 1126. Item number 473 contained in section 1602 of the
Transportation Equity Act for the 21st Century (112 Stat. 274),
relating to Minnesota, is amended by striking ``between I-35W
and 24th Avenue to four lanes in Richfield'' and inserting
``reconstruction project from Penn Avenue to 24th Avenue,
including the Penn Avenue Bridge over I-494''.
Sec. 1127. The Secretary of Transportation shall not issue
final regulations under section 20153 of title 49, United
States Code, before July 1, 2001.
Sec. 1128. Notwithstanding any other provision of law, in
addition to amounts made available in this Act or any other
Act, the following sums shall be made available from the
Highway Trust Fund (other than the Mass Transit Account):
$1,700,000 for transportation and community
preservation projects along the Main Street Corridor in
Houston, Texas;
$5,000,000 for rehabilitation, repair, and
restoration of the historic Stillwater Lift Bridge
between Stillwater, Minnesota and Houlton, Wisconsin;
$1,000,000 for improvements to McClung Road, Boston
Street, Larson Street and Whirlpool Drive in the City
of LaPorte, Indiana; and
$1,000,000 for design, environmental mitigation,
engineering, and construction of, and improvements to,
the US 36/Wadsworth interchange (Broomfield
interchange) in Broomfield County, Colorado:
Provided, That the amounts appropriated in this section shall
remain available until expended and shall not be subject to, or
computed against, any obligation limitation or contract
authority set forth in this or any other Act.
CHAPTER 12
GENERAL SERVICES ADMINISTRATION
Real Property Activities
federal buildings fund
For an additional amount to be deposited in, and to be
used for the purposes of, the Federal Buildings Fund of the
General Services Administration, $2,070,000: Provided, That
this amount shall be available for the purpose of renovating
and redeveloping portions of the historic Federal building
located at 30 North Seventh Street in Terre Haute, Indiana, to
accommodate the needs of Federal tenants: Provided further,
That use of these funds is subject to authorization including
the preparation and approval of a prospectus as required by the
Public Buildings Act of 1959, as amended.
DEPARTMENT OF THE TREASURY
United States Customs Service
operations, maintenance and procurement, air and marine interdiction
programs
For an additional amount of $7,000,000, to remain available
until expended, for necessary expenses associated with
procurement of two aircraft and related equipment expenses
associated with aviation standardization and training at the
Customs National Aviation Center in Oklahoma City, Oklahoma:
Provided, That none of the funds provided shall be available
for obligation until an expenditure plan is submitted for
approval to the Committees on Appropriations.
CHAPTER 13
DEPARTMENT OF VETERANS AFFAIRS
Departmental Administration
construction, minor projects
For an additional amount for ``Construction, minor
projects'', $8,840,000, to remain available until expended.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Community Planning and Development
empowerment zones/enterprise communities
For an additional amount for ``Empowerment zones and
enterprise communities'', $110,000,000, to remain available
until expended: Provided, That $185,000,000 shall be available
for urban empowerment zones, as authorized by the Taxpayer
Relief Act of 1997, including $12,333,333 for each empowerment
zone.
community development fund
For an additional amount for ``Community development
fund'', $66,128,000 to remain available until September 30,
2003.
The referenced statement of the managers in the seventh
undesignated paragraph under this heading in title II of the
Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 2001
(Public Law 106-377) is deemed to be amended by striking ``West
Dallas neighborhoods'' in reference to improvement efforts by
the Pleasant Wood/Pleasant Grove Community Development
Corporation, and inserting ``the Pleasant Grove area'' in lieu
thereof.
The unobligated amount appropriated in the third
paragraph under the heading ``Community development block
grants'' in Chapter 8 of title II of the Emergency Supplemental
Act, 2000 (Public Law 106-246) for a grant to the City of
Hamlet, North Carolina for demolition and removal of buildings
and equipment destroyed by fire shall remain available until
September 30, 2002 for a grant for such purpose to the County
of Richmond, North Carolina.
The seventh paragraph under this heading in title II of
Public Law 106-377 is amended by striking ``$292,000,000'' and
inserting in lieu thereof $358,128,000'': Provided, That such
funds shall be available for grants for the Economic
Development Initiative (EDI) to finance a variety of targeted
economic investments in accordance with the terms and
conditions specified in the statement of managers accompanying
this conference report.
DEPARTMENT OF THE TREASURY
Community Development Financial Institutions
community development financial institutions
fund program account
Under this heading in Public Law 106-377, strike
``$8,750,000 may be used for administrative expenses,'', and
insert ``$9,750,000 may be used for administrative expenses,
including administration of the New Markets Tax Credit and
Individual Development Accounts,''.
Environmental Protection Agency
science and technology
For an additional amount for ``Science and technology'',
$1,000,000 for continuation of the South Bronx Air Pollution
Study being conducted by New York University.
environmental programs and management
The statement of the managers under this heading in title
III of the Departments of Veterans Affairs and Housing and
Urban Development, and Independent Agencies Appropriations Act,
2001 (Public Law 106-377) is deemed to be amended by inserting
the word ``Valley'' after the words ``San Bernardino'' in
reference to a project identified as number 104 in such
statement of the managers.
state and tribal assistance grants
Grants appropriated under this heading in Public Law 106-
74 and Public Law 106-377 for drinking water infrastructure
needs in the New York City watershed shall be awarded under
section 1443(d) of the Safe Drinking Water Act, as amended.
The referenced statement of the managers under this
heading in Public Law 106-377 is deemed to be amended by
striking all after the words ``City of Liberty'' in reference
to item number 78, and inserting the words ``Town of
Versailles, Indiana for wastewater infrastructure
improvements''.
Under this heading in title III of Public Law 106-377,
strike ``$335,740,000'' and insert ``$356,370,000'': Provided,
That such funds shall be for making grants for the construction
of wastewater and water treatment facilities and groundwater
protection infrastructure in accordance with the terms and
conditions specified for such grants in the statement of
managers accompanying Public Law 106-377 and this conference
report.
Federal Emergency Management Agency
emergency management planning and assistance
For an additional amount for ``Emergency management
planning and assistance'', $100,000,000, to remain available
through September 30, 2001, for programs as authorized by
section 33 of the Federal Fire Prevention and Control Act of
1974 (15 U.S.C. 2201 et seq.), as amended.
CHAPTER 14
General Provisions--This Division
Sec. 1401. H. Con. Res. 234 of the 106th Congress, as
adopted by the House of Representatives on November 18, 1999,
shall be considered to have been adopted by the Senate.
Sec. 1402. Section 3003(a)(1) of the Federal Reports
Elimination and Sunset Act of 1995 (31 U.S.C. 1113 note) does
not apply to any report required to be submitted under any of
the following provisions of law:
(1) Sections 1105(a), 1106(a) and (b), and 1109(a)
of title 31, United States Code, and any other law
relating to the budget of the United States Government.
(2) The Balanced Budget and Emergency Deficit
Control Act of 1985 (2 U.S.C. 900 et seq.).
(3) Sections 202(e)(1) and (3) of the Congressional
Budget Act of 1974 (2 U.S.C. 602(e)(1) and (3)).
(4) Section 1014(e) of the Congressional Budget and
Impoundment Control Act of 1974 (2 U.S.C. 685(e)).
Sec. 1403. (a) Government-Wide Rescissions.--There is
hereby rescinded an amount equal to 0.22 percent of the
discretionary budget authority provided (or obligation limit
imposed) for fiscal year 2001 in this or any other Act for each
department, agency, instrumentality, or entity of the Federal
Government, except for those programs, projects, and activities
which are specifically exempted elsewhere in this provision:
Provided, That this exact reduction percentage shall be applied
on a pro rata basis only to each program, project, and activity
subject to the rescission.
(b) Restrictions.--This reduction shall not be applied to
the amounts appropriated in Title I of Public Law 106-259:
Provided, That this reduction shall not be applied to the
amounts appropriated in Division B of Public Law 106-246:
Provided further, That this reduction shall not be applied to
the amounts appropriated under the Departments of Labor, Health
and Human Services, and Education, and Related Agencies
Appropriations Act, 2001, as contained in this Act, or in prior
Acts.
(c) Report.--The Director of the Office of Management and
Budget shall include in the President's budget submitted for
fiscal year 2002 a report specifying the reductions made to
each account pursuant to this section.
DIVISION B
TITLE I
Sec. 101. Eligibility of Private Organizations Under Child
and Adult Care Food Program. (a) Section 17(a)(2)(B) of the
Richard B. Russell National School Lunch Act (42 U.S.C.
1766(a)(2)(B)) is amended by striking ``children for which
the'' and inserting ``children, if--
``(i) during the period beginning
on the date of enactment of this clause
and ending on September 30, 2001, at
least 25 percent of the children served
by the organization meet the income
eligibility criteria established under
section 9(b) for free or reduced price
meals; or
``(ii) the''.
(b) Emergency Requirement.--
(1) In general.--The entire amount necessary to
carry out this section shall be available only to the
extent that an official budget request for the entire
amount, that includes designation of the entire amount
of the request as an emergency requirement as defined
in the Balanced Budget and Emergency Deficit Control
Act of 1985, as amended, is transmitted by the
President to the Congress.
(2) Designation.--The entire amount necessary to
carry out this section is designated by the Congress as
an emergency requirement pursuant to section
251(b)(2)(A) of such Act.
Sec. 102. Summer Food Pilot Projects. (a) Section 18 of the
Richard B. Russell National School Lunch Act (42 U.S.C. 1769)
is amended by adding at the end the following:
``(f) Summer Food Pilot Projects.--
``(1) Definition of eligible state.--In this
subsection, the term `eligible State' means a State in
which (based on data available in July 2000)--
``(A) the percentage obtained by dividing--
``(i) the sum of--
``(I) the average daily
number of children attending
the summer food service program
in the State in July 1999; and
``(II) the average daily
number of children receiving
free or reduced price meals
under the school lunch program
in the State in July 1999; by
``(ii) the average daily number of
children receiving free or reduced
price meals under the school lunch
program in the State in March 1999; is
less than 50 percent of
``(B) the percentage obtained by dividing--
``(i) the sum of--
``(I) the average daily
number of children attending
the summer food service program
in all States in July 1999; and
``(II) the average daily
number of children receiving
free or reduced price meals
under the school lunch program
in all States in July 1999; by
``(ii) the average daily number of
children receiving free or reduced
price meals under the school lunch
program in all States in March 1999.
``(2) Pilot projects.--During the period of fiscal
years 2001 through 2003, the Secretary shall carry out
a summer food pilot project in each eligible State to
increase the number of children participating in the
summer food service program in the State.
``(3) Support levels for service institutions.--
``(A) Food service.--Under the pilot
project, a service institution (other than a
service institution described in section
13(a)(7)) in an eligible State shall receive
the maximum amounts for food service under
section 13(b)(1) without regard to the
requirement under section 13(b)(1)(A) that
payments shall equal the full cost of food
service operations.
``(B) Administrative costs.--Under the
pilot project, a service institution (other
than a service institution described in section
13(a)(7)) in an eligible State shall receive
the maximum amounts for administrative costs
determined by the Secretary under section
13(b)(4) without regard to the requirement
under section 13(b)(3) that payments to service
institutions shall equal the full amount of
State-approved administrative costs incurred.
``(C) Compliance.--A service institution
that receives assistance under this subsection
shall comply with all provisions of section 13
other than subsections (b)(1)(A) and (b)(3) of
section 13.
``(4) Maintenance of effort.--Expenditures of funds
from State and local sources for maintenance of a
summer food service program shall not be diminished as
a result of assistance from the Secretary received
under this subsection.
``(5) Evaluation of pilot projects.--
``(A) In general.--The Secretary, acting
through the Administrator of the Food and
Nutrition Service, shall conduct an evaluation
of the pilot project.
``(B) Content.--An evaluation under this
paragraph shall describe--
``(i) any effect on participation
by children and service institutions in
the summer food service program in the
eligible State in which the pilot
project is carried out;
``(ii) any effect of the pilot
project on the quality of the meals and
supplements served in the eligible
State in which the pilot project is
carried out; and
``(iii) any effect of the pilot
project on program integrity.
``(6) Reports.--
``(A) Interim report.--Not later than
December 1, 2002, the Secretary shall submit to
the Committee on Education and the Workforce of
the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the
Senate an interim report that describes the
status of, and any progress made by, each pilot
project being carried out under this subsection
as of the date of submission of the report.
``(B) Final report.--Not later than April
30, 2004, the Secretary shall submit to the
Committee on Education and the Workforce of the
House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the
Senate a final report that includes--
``(i) the evaluations completed by
the Secretary under paragraph (5); and
``(ii) any recommendations of the
Secretary concerning the pilot
projects.''.
(b) Emergency Requirement.--
(1) In general.--The entire amount necessary to
carry out this section shall be available only to the
extent that an official budget request for the entire
amount, that includes designation of the entire amount
of the request as an emergency requirement as defined
in the Balanced Budget and Emergency Deficit Control
Act of 1985, as amended, is transmitted by the
President to the Congress.
(2) Designation.--The entire amount necessary to
carry out this section is designated by the Congress as
an emergency requirement pursuant to section
251(b)(2)(A) of such Act.
Sec. 103. (a) In General.--The Secretary of the Interior
shall conduct a feasibility study for a Sacramento River,
California, diversion project that is consistent with the Water
Forum Agreement among the members of the Sacramento,
California, Water Forum dated April 24, 2000, and that
considers--
(1) consolidation of several of the Natomas Central
Mutual Water Company's diversions;
(2) upgrading fish screens at the consolidated
diversion;
(3) the diversion of 35,000 acre feet of water by
the Placer County Water Agency;
(4) the diversion of 29,000 acre feet of water for
delivery to the Northridge Water District;
(5) the potential to accommodate other diversions
of water from the Sacramento River, subject to
additional negotiations and agreement among Water Forum
signatories and potentially affected parties upstream
on the Sacramento River; and
(6) an inter-tie between the diversions referred to
in paragraphs (3), (4), and (5) with the Northridge
Water District's pipeline that delivers water from the
American River.
(b) Required Components.--The feasibility study shall
include--
(1) the development of a range of reasonable
options;
(2) an environmental evaluation; and
(3) consultation with Federal and State resource
management agencies regarding potential impacts and
mitigation measures.
(c) Water Supply Impact Alternatives.--The study authorized
by this section shall include a range of alternatives, all of
which would investigate options that could reduce to
insignificance any water supply impact on water users in the
Sacramento River watershed, including Central Valley Project
contractors, from any delivery of water out of the Sacramento
River as referenced in subsection (a). In evaluating the
alternatives, the study shall consider water supply
alternatives that would increase water supply for, or in, the
Sacramento River watershed. The study should be coordinated
with the CALFED program and take advantage of information
already developed within that program to investigate water
supply increase alternatives. Where the alternatives evaluated
are in addition to or different from the existing CALFED
alternatives, such information should be clearly identified.
(d) Habitat Management Planning Grants.--The Secretary of
the Interior, subject to the availability of appropriations, is
authorized and directed to provide grants to support local
habitat management planning efforts undertaken as part of the
consultation described in subsection (b)(3) in the form of
matching funds up to $5,000,000.
(e) Report.--The Secretary of the Interior shall provide a
report to the Committee on Resources of the United States House
of Representatives and to the Committee on Energy and Natural
Resources of the United States Senate within twenty-four months
from the date of enactment of this Act on the results of the
study identified in subsection (a).
(f) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary of the Interior to carry
out this section $10,000,000, which may remain available until
expended, of which--
(1) $5,000,000 shall be for the feasibility study
under subsection (a); and
(2) $5,000,000 shall be for the habitat management
planning grants under subsection (d).
(g) Limitation on Construction.--This section does not and
shall not be interpreted to authorize construction of any
facilities.
Sec. 104. Ten- and Fifteen-Mile Bayous, Arkansas. The
project for flood control, Saint Francis River Basin, Missouri
and Arkansas, authorized by section 204 of the Flood Control
Act of 1950 (64 Stat. 172), is modified to expand the
boundaries of the project to include Ten- and Fifteen-Mile
Bayous near West Memphis, Arkansas. Notwithstanding section
103(f) of the Water Resources Development Act of 1986 (100
Stat. 4086), the flood control work at Ten- and Fifteen-Mile
Bayous shall not be considered separable elements of the
project.
Sec. 105. In accordance with section 102(l) of the Water
Resources Development Act of 1990 (104 Stat. 4613), the
Secretary of the Army, acting through the Chief of Engineers,
is authorized and directed to enter into an agreement to permit
the City of Alton, Illinois to construct the authorized
recreational facilities and to reimburse the City of Alton,
Illinois for the Federal share of these cost-shared recreation
facilities as usable segments are completed.
Sec. 106. Truckee Watershed Reclamation Project. (a)
Authorization.--The Secretary of the Interior, in cooperation
with Washoe County, Nevada, may participate in the design,
planning, and construction of the Truckee watershed reclamation
project, consisting of the North Valley reuse project and the
Spanish Springs Valley septic conversion project, to reclaim
and reuse wastewater (including degraded groundwater) within
and without the service area of Washoe County, Nevada.
(b) Cost Share.--The Federal share of the cost of the
project described in subsection (a) shall not exceed 25 percent
of the total cost of the project.
(c) Limitation.--Funds provided by the Secretary shall not
be used for the operation or maintenance of the project
described in subsection (a).
(d) Reclamation Wastewater and Groundwater Study and
Facilities Act.--
(1) Design, planning, and construction.--Design,
planning, and construction of the project described in
subsection (a) shall be in accordance with, and subject
to the limitations contained in, the Reclamation
Wastewater and Groundwater Study and Facilities Act (43
U.S.C. 390h et seq.).
(2) Funding.--Funds made available under section
1631 of the Reclamation Wastewater and Groundwater
Study and Facilities Act (43 U.S.C. 390h-13) may be
used to pay the Federal share of the cost of the
project.
Sec. 107. The project for navigation, Tampa Harbor,
Florida, authorized by section 4 of the Rivers and Harbors Act
of September 22, 1922 (42 Stat. 1042), is modified to authorize
the Secretary of the Army to deepen and widen the Alafia
Channel in accordance with the plans described in the Draft
Feasibility Report, Alafia River, Tampa Harbor, Florida, dated
May 2000, at a total cost of $61,592,000, with an estimated
Federal cost of $39,621,000 and an estimated non-Federal cost
of $21,971,000.
Sec. 108. Environmental Infrastructure. (a) Technical,
Planning, and Design Assistance.--Section 219(c) of the Water
Resources Development Act of 1992 (106 Stat. 4835) is amended
by adding at the end the following:
``(19) Marana, arizona.--Wastewater treatment and
distribution infrastructure, Marana, Arizona.
``(20) Eastern arkansas enterprise community,
arkansas.--Water-related infrastructure, Eastern
Arkansas Enterprise Community, Cross, Lee, Monroe, and
St. Francis Counties, Arkansas.
``(21) Chino hills, california.--Storm water and
sewage collection infrastructure, Chino Hills,
California.
``(22) Clear lake basin, california.--Water-related
infrastructure and resource protection, Clear Lake
Basin, California.
``(23) Desert hot springs, california.--Resource
protection and wastewater infrastructure, Desert Hot
Springs, California.
``(24) Eastern municipal water district,
california.--Regional water-related infrastructure,
Eastern Municipal Water District, California.
``(25) Huntington beach, california.--Water supply
and wastewater infrastructure, Huntington Beach,
California.
``(26) Inglewood, california.--Water
infrastructure, Inglewood, California.
``(27) Los osos community service district,
california.--Wastewater infrastructure, Los Osos
Community Service District, California.
``(28) Norwalk, california.--Water-related
infrastructure, Norwalk, California.
``(29) Key biscayne, florida.--Sanitary sewer
infrastructure, Key Biscayne, Florida.
``(30) South tampa, florida.--Water supply and
aquifer storage and recovery infrastructure, South
Tampa, Florida.
``(31) Fort wayne, indiana.--Combined sewer
overflow infrastructure and wetlands protection, Fort
Wayne, Indiana.
``(32) Indianapolis, indiana.--Combined sewer
overflow infrastructure, Indianapolis, Indiana.
``(33) St. charles, st. bernard, and plaquemines
parishes, louisiana.--Water and wastewater
infrastructure, St. Charles, St. Bernard, and
Plaquemines Parishes, Louisiana.
``(34) St. john the baptist and st. james parishes,
louisiana.--Water and sewer improvements, St. John the
Baptist and St. James Parishes, Louisiana.
``(35) Union county, north carolina.--Water
infrastructure, Union County, North Carolina.
``(36) Hood river, oregon.--Water transmission
infrastructure, Hood River, Oregon.
``(37) Medford, oregon.--Sewer collection
infrastructure, Medford, Oregon.
``(38) Portland, oregon.--Water infrastructure and
resource protection, Portland, Oregon.
``(39) Coudersport, pennsylvania.--Sewer system
extensions and improvements, Coudersport, Pennsylvania.
``(40) Park city, utah.--Water supply
infrastructure, Park City, Utah.
(b) Authorization of Appropriations for Technical,
Planning, and Design Assistance.--Section 219(d) of the Water
Resources Development Act of 1992 (106 Stat. 4836) is amended
by striking ``$5,000,000'' and inserting ``$30,000,000''.
(c) Modification of Authorizations for Environmental
Projects.--Section 219 of the Water Resources Development Act
of 1992 (106 Stat. 4835; 106 Stat. 3757; 113 Stat. 334) is
amended--
(1) in subsection (e)(6) by striking
``$20,000,000'' and inserting ``$30,000,000'';
(2) in subsection (f)(4) by striking
``$15,000,000'' and inserting ``$35,000,000'';
(3) in subsection (f)(21) by striking
``$10,000,000'' and inserting ``$20,000,000'';
(4) in subsection (f)(25) by striking
``$5,000,000'' and inserting ``$15,000,000'';
(5) in subsection (f)(30) by striking
``$10,000,000'' and inserting ``$20,000,000'';
(6) in subsection (f)(43) by striking
``$15,000,000'' and inserting ``$35,000,000''.
(d) Additional Assistance for Critical Resource Projects.--
Section 219(f) of the Water Resources Development Act of 1992
(106 Stat. 4835; 113 Stat. 335) is amended by adding at the end
the following:
``(45) Washington, d.c., and maryland.--$15,000,000
for the project described in subsection (c)(1),
modified to include measures to eliminate or control
combined sewer overflows in the Anacostia River
watershed.
``(46) Duck river, cullman, alabama.--$5,000,000
for water supply infrastructure, Duck River, Cullman,
Alabama.
``(47) Union county, arkansas.--$52,000,000 for
water supply infrastructure, including facilities for
withdrawal, treatment, and distribution, Union County,
Arkansas.
``(48) Cambria, california.--$10,300,000 for
desalination infrastructure, Cambria, California.
``(49) Los angeles harbor/terminal island,
california.--$6,500,000 for wastewater recycling
infrastructure, Los Angeles Harbor/Terminal Island,
California.
``(50) North valley region, lancaster,
california.--$14,500,000 for water infrastructure,
North Valley Region, Lancaster, California.
``(51) San diego county, california.--$10,000,000
for water-related infrastructure, San Diego County,
California.
``(52) South perris, california.--$25,000,000 for
water supply desalination infrastructure, South Perris,
California.
``(53) Aurora, illinois.--$8,000,000 for wastewater
infrastructure to reduce or eliminate combined sewer
overflows, Aurora, Illinois.
``(54) Cook county, illinois.--$35,000,000 for
water-related infrastructure and resource protection
and development, Cook County, Illinois.
``(55) Madison and st. clair counties, illinois.--
$10,000,000 for water and wastewater assistance,
Madison and St. Clair Counties, Illinois.
``(56) Iberia parish, louisiana.--$5,000,000 for
water and wastewater infrastructure, Iberia Parish,
Louisiana.
``(57) Kenner, louisiana.--$5,000,000 for
wastewater infrastructure, Kenner, Louisiana.
``(58) Benton harbor, michigan.--$1,500,000 for
water related infrastructure, City of Benton Harbor,
Michigan.
``(59) Genesee county, michigan.--$6,700,000 for
wastewater infrastructure assistance to reduce or
eliminate sewer overflows, Genessee County, Michigan.
``(60) Negaunee, michigan.--$10,000,000 for
wastewater infrastructure assistance, City of Negaunee,
Michigan.
``(61) Garrison and kathio township, minnesota.--
$11,000,000 for a wastewater infrastructure project for
the city of Garrison and Kathio Township, Minnesota.
``(62) Newton, new jersey.--$7,000,000 for water
filtration infrastructure, Newton, New Jersey.
``(63) Liverpool, new york.--$2,000,000 for water
infrastructure, including a pump station, Liverpool,
New York.
``(64) Stanly county, north carolina.--$8,900,000
for wastewater infrastructure, Stanly County, North
Carolina.
``(65) Yukon, oklahoma.--$5,500,000 for water-
related infrastructure, including wells, booster
stations, storage tanks, and transmission lines, Yukon,
Oklahoma.
``(66) Allegheny county, pennsylvania.--$20,000,000
for water-related environmental infrastructure,
Allegheny County, Pennsylvania.
``(67) Mount joy township and conewago township,
pennsylvania.--$8,300,000 for water and wastewater
infrastructure, Mount Joy Township and Conewago
Township, Pennsylvania.
``(68) Phoenixville borough, chester county,
pennsylvania.--$2,400,000 for water and sewer
infrastructure, Phoenixville Borough, Chester County,
Pennsylvania.
``(69) Titusville, pennsylvania.--$7,300,000 for
storm water separation and treatment plant upgrades,
Titusville, Pennsylvania.
``(70) Washington, greene, westmoreland, and
fayette counties, pennsylvania.--$8,000,000 for water
and wastewater infrastructure, Washington, Greene,
Westmoreland, and Fayette Counties, Pennsylvania.''.
Sec. 109. Florida Keys Water Quality Improvements. (a) In
General.--In coordination with the Florida Keys Aqueduct
Authority, appropriate agencies of municipalities of Monroe
County, Florida, and other appropriate public agencies of the
State of Florida or Monroe County, the Secretary of the Army
may provide technical and financial assistance to carry out
projects for the planning, design, and construction of
treatment works to improve water quality in the Florida Keys
National Marine Sanctuary.
(b) Criteria for Projects.--Before entering into a
cooperation agreement to provide assistance with respect to a
project under this section, the Secretary shall ensure that--
(1) the non-Federal sponsor has completed adequate
planning and design activities, as applicable;
(2) the non-Federal sponsor has completed a
financial plan identifying sources of non-Federal
funding for the project;
(3) the project complies with--
(A) applicable growth management ordinances
of Monroe County, Florida;
(B) applicable agreements between Monroe
County, Florida, and the State of Florida to
manage growth in Monroe County, Florida; and
(C) applicable water quality standards; and
(4) the project is consistent with the master
wastewater and stormwater plans for Monroe County,
Florida.
(c) Consideration.--In selecting projects under subsection
(a), the Secretary shall consider whether a project will have
substantial water quality benefits relative to other projects
under consideration.
(d) Consultation.--In carrying out this section, the
Secretary shall consult with--
(1) the Water Quality Steering Committee
established under section 8(d)(2)(A) of the Florida
Keys National Marine Sanctuary and Protection Act (106
Stat. 5054);
(2) the South Florida Ecosystem Restoration Task
Force established by section 528(f) of the Water
Resources Development Act of 1996 (110 Stat. 3771-
3773);
(3) the Commission on the Everglades established by
executive order of the Governor of the State of
Florida; and
(4) other appropriate State and local government
officials.
(e) Non-Federal Share.--
(1) In general.--The non-Federal share of the cost
of a project carried out under this section shall be 35
percent.
(2) Credit.--
(A) In general.--The Secretary may provide
the non-Federal interest credit toward cash
contributions required--
(i) before and during the
construction of the project, for the
costs of planning, engineering, and
design, and for the construction
management work that is performed by
the non-Federal interest and that the
Secretary determines is necessary to
implement the project; and
(ii) during the construction of the
project, for the construction that the
non-Federal interest carries out on
behalf of the Secretary and that the
Secretary determines is necessary to
carry out the project.
(B) Treatment of credit between projects.--
Any credit provided under this paragraph may be
carried over between authorized projects.
(f) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $100,000,000. Such
sums shall remain available until expended.
Sec. 110. San Gabriel Basin, California. (a) San Gabriel
Basin Restoration.--
(1) Establishment of fund.--There shall be
established within the Treasury of the United States an
interest bearing account to be known as the San Gabriel
Basin Restoration Fund (in this section referred to as
the ``Restoration Fund'').
(2) Administration of fund.--The Restoration Fund
shall be administered by the Secretary of the Army, in
cooperation with the San Gabriel Basin Water Quality
Authority or its successor agency.
(3) Purposes of fund.--
(A) In general.--Subject to subparagraph
(B), the amounts in the Restoration Fund,
including interest accrued, shall be utilized
by the Secretary--
(i) to design and construct water
quality projects to be administered by
the San Gabriel Basin Water Quality
Authority and the Central Basin Water
Quality Project to be administered by
the Central Basin Municipal Water
District; and
(ii) to operate and maintain any
project constructed under this section
for such period as the Secretary
determines, but not to exceed 10 years,
following the initial date of operation
of the project.
(B) Cost-sharing limitation.--
(i) In general.--The Secretary may
not obligate any funds appropriated to
the Restoration Fund in a fiscal year
until the Secretary has deposited in
the Fund an amount provided by non-
Federal interests sufficient to ensure
that at least 35 percent of any funds
obligated by the Secretary are from
funds provided to the Secretary by the
non-Federal interests.
(ii) Non-federal responsibility.--
The San Gabriel Basin Water Quality
Authority shall be responsible for
providing the non-Federal amount
required by clause (i). The State of
California, local government agencies,
and private entities may provide all or
any portion of such amount.
(b) Compliance With Applicable Law.--In carrying out the
activities described in this section, the Secretary shall
comply with any applicable Federal and State laws.
(c) Relationship to Other Activities.--Nothing in this
section shall be construed to affect other Federal or State
authorities that are being used or may be used to facilitate
the cleanup and protection of the San Gabriel and Central
groundwater basins. In carrying out the activities described in
this section, the Secretary shall integrate such activities
with ongoing Federal and State projects and activities. None of
the funds made available for such activities pursuant to this
section shall be counted against any Federal authorization
ceiling established for any previously authorized Federal
projects or activities.
(d) Authorization of Appropriations.--
(1) In general.--There is authorized to be
appropriated to the Restoration Fund established under
subsection (a) $85,000,000. Such funds shall remain
available until expended.
(2) Set-aside.--Of the amounts appropriated under
paragraph (1), no more than $10,000,000 shall be
available to carry out the Central Basin Water Quality
Project.
(e) Adjustment.--Of the $25,000,000 made available for San
Gabriel Basin Groundwater Restoration, California, under the
heading ``Construction, General'' in title I of the Energy and
Water Development Appropriations Act, 2001--
(1) $2,000,000 shall be available only for studies
and other investigative activities and planning and
design of projects determined by the Secretary to offer
a long-term solution to the problem of groundwater
contamination caused by perchlorates at sites located
in the city of Santa Clarita, California; and
(2) $23,000,000 shall be deposited in the
Restoration Fund, of which $4,000,000 shall be used for
remediation in the Central Basin, California.
Sec. 111. Perchlorate. (a) In General.--The Secretary of
the Army, in cooperation with Federal, State, and local
government agencies, may participate in studies and other
investigative activities and in the planning and design of
projects determined by the Secretary to offer a long-term
solution to the problem of groundwater contamination caused by
perchlorates.
(b) Investigations and Projects.--
(1) Bosque and leon rivers.--The Secretary, in
coordination with other Federal agencies and the Brazos
River Authority, shall participate under subsection (a)
in investigations and projects in the Bosque and Leon
River watersheds in Texas to assess the impact of the
perchlorate associated with the former Naval ``Weapons
Industrial Reserve Plant'' at McGregor, Texas.
(2) Caddo lake.--The Secretary, in coordination
with other Federal agencies and the Northeast Texas
Municipal Water District, shall participate under
subsection (a) in investigations and projects relating
to perchlorate contamination in Caddo Lake, Texas.
(3) Eastern santa clara basin.--The Secretary, in
coordination with other Federal, State, and local
government agencies, shall participate under subsection
(a) in investigations and projects related to sites
that are sources of perchlorates and that are located
in the city of Santa Clarita, California.
(c) Authorization of Appropriations.--For the purposes of
carrying out this section, there is authorized to be
appropriated to the Secretary $25,000,000, of which not to
exceed $8,000,000 shall be available to carry out subsection
(b)(1), not to exceed $3,000,000 shall be available to carry
out subsection (b)(2), and not to exceed $7,000,000 shall be
available to carry out subsection (b)(3).
Sec. 112. Wet Weather Water Quality. (a) Combined Sewer
Overflows.--Section 402 of the Federal Water Pollution Control
Act (33 U.S.C. 1342) is amended by adding at the end the
following:
``(q) Combined Sewer Overflows.--
``(1) Requirement for permits, orders, and
decrees.--Each permit, order, or decree issued pursuant
to this Act after the date of enactment of this
subsection for a discharge from a municipal combined
storm and sanitary sewer shall conform to the Combined
Sewer Overflow Control Policy signed by the
Administrator on April 11, 1994 (in this subsection
referred to as the `CSO control policy').
``(2) Water quality and designated use review
guidance.--Not later than July 31, 2001, and after
providing notice and opportunity for public comment,
the Administrator shall issue guidance to facilitate
the conduct of water quality and designated use reviews
for municipal combined sewer overflow receiving waters.
``(3) Report.--Not later than September 1, 2001,
the Administrator shall transmit to Congress a report
on the progress made by the Environmental Protection
Agency, States, and municipalities in implementing and
enforcing the CSO control policy.''.
(b) Wet Weather Pilot Program.--Title I of the Federal
Water Pollution Control Act (33 U.S.C. 1251 et seq.) is amended
by adding at the end the following:
``SEC. 121. WET WEATHER WATERSHED PILOT PROJECTS.
``(a) In General.--The Administrator, in coordination with
the States, may provide technical assistance and grants for
treatment works to carry out pilot projects relating to the
following areas of wet weather discharge control:
``(1) Watershed management of wet weather
discharges.--The management of municipal combined sewer
overflows, sanitary sewer overflows, and stormwater
discharges, on an integrated watershed or subwatershed
basis for the purpose of demonstrating the
effectiveness of a unified wet weather approach.
``(2) Stormwater best management practices.--The
control of pollutants from municipal separate storm
sewer systems for the purpose of demonstrating and
determining controls that are cost-effective and that
use innovative technologies in reducing such pollutants
from stormwater discharges.
``(b) Administration.--The Administrator, in coordination
with the States, shall provide municipalities participating in
a pilot project under this section the ability to engage in
innovative practices, including the ability to unify separate
wet weather control efforts under a single permit.
``(c) Funding.--
``(1) In general.--There is authorized to be
appropriated to carry out this section $10,000,000 for
fiscal year 2002, $15,000,000 for fiscal year 2003, and
$20,000,000 for fiscal year 2004. Such funds shall
remain available until expended.
``(2) Stormwater.--The Administrator shall make
available not less than 20 percent of amounts
appropriated for a fiscal year pursuant to this
subsection to carry out the purposes of subsection
(a)(2).
``(3) Administrative expenses.--The Administrator
may retain not to exceed 4 percent of any amounts
appropriated for a fiscal year pursuant to this
subsection for the reasonable and necessary costs of
administering this section.
``(d) Report to Congress.--Not later than 5 years after the
date of enactment of this section, the Administrator shall
transmit to Congress a report on the results of the pilot
projects conducted under this section and their possible
application nationwide.''.
(c) Sewer Overflow Control Grants.--Title II of the Federal
Water Pollution Control Act (33 U.S.C. 1342 et seq.) is amended
by adding at the end the following:
``SEC. 221. SEWER OVERFLOW CONTROL GRANTS.
``(a) In General.--In any fiscal year in which the
Administrator has available for obligation at least
$1,350,000,000 for the purposes of section 601--
``(1) the Administrator may make grants to States
for the purpose of providing grants to a municipality
or municipal entity for planning, design, and
construction of treatment works to intercept,
transport, control, or treat municipal combined sewer
overflows and sanitary sewer overflows; and
``(2) subject to subsection (g), the Administrator
may make a direct grant to a municipality or municipal
entity for the purposes described in paragraph (1).
``(b) Prioritization.--In selecting from among
municipalities applying for grants under subsection (a), a
State or the Administrator shall give priority to an applicant
that--
``(1) is a municipality that is a financially
distressed community under subsection (c);
``(2) has implemented or is complying with an
implementation schedule for the 9 minimum controls
specified in the CSO control policy referred to in
section 402(q)(1) and has begun implementing a long-
term municipal combined sewer overflow control plan or
a separate sanitary sewer overflow control plan; or
``(3) is requesting a grant for a project that is
on a State's intended use plan pursuant to section
606(c); or
``(4) is an Alaska Native Village.
``(c) Financially Distressed Community.--
``(1) Definition.--In subsection (b), the term
`financially distressed community' means a community
that meets affordability criteria established by the
State in which the community is located, if such
criteria are developed after public review and comment.
``(2) Consideration of impact on water and sewer
rates.--In determining if a community is a distressed
community for the purposes of subsection (b), the State
shall consider, among other factors, the extent to
which the rate of growth of a community's tax base has
been historically slow such that implementing a plan
described in subsection (b)(2) would result in a
significant increase in any water or sewer rate charged
by the community's publicly owned wastewater treatment
facility.
``(3) Information to assist states.--The
Administrator may publish information to assist States
in establishing affordability criteria under paragraph
(1).
``(d) Cost Sharing.--The Federal share of the cost of
activities carried out using amounts from a grant made under
subsection (a) shall be not less than 55 percent of the cost.
The non-Federal share of the cost may include, in any amount,
public and private funds and in-kind services, and may include,
notwithstanding section 603(h), financial assistance, including
loans, from a State water pollution control revolving fund.
``(e) Administrative Reporting Requirements.--If a project
receives grant assistance under subsection (a) and loan
assistance from a State water pollution control revolving fund
and the loan assistance is for 15 percent or more of the cost
of the project, the project may be administered in accordance
with State water pollution control revolving fund
administrative reporting requirements for the purposes of
streamlining such requirements.
``(f) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $750,000,000 for
each of fiscal years 2002 and 2003. Such sums shall remain
available until expended.
``(g) Allocation of Funds.--
``(1) Fiscal year 2002.--Subject to subsection (h),
the Administrator shall use the amounts appropriated to
carry out this section for fiscal year 2002 for making
grants to municipalities and municipal entities under
subsection (a)(2), in accordance with the criteria set
forth in subsection (b).
``(2) Fiscal year 2003.--Subject to subsection (h),
the Administrator shall use the amounts appropriated to
carry out this section for fiscal year 2003 as follows:
``(A) Not to exceed $250,000,000 for making
grants to municipalities and municipal entities
under subsection (a)(2), in accordance with the
criteria set forth in subsection (b).
``(B) All remaining amounts for making
grants to States under subsection (a)(1), in
accordance with a formula to be established by
the Administrator, after providing notice and
an opportunity for public comment, that
allocates to each State a proportional share of
such amounts based on the total needs of the
State for municipal combined sewer overflow
controls and sanitary sewer overflow controls
identified in the most recent survey conducted
pursuant to section 516(b)(1).
``(h) Administrative Expenses.--Of the amounts appropriated
to carry out this section for each fiscal year--
``(1) the Administrator may retain an amount not to
exceed 1 percent for the reasonable and necessary costs
of administering this section; and
``(2) the Administrator, or a State, may retain an
amount not to exceed 4 percent of any grant made to a
municipality or municipal entity under subsection (a),
for the reasonable and necessary costs of administering
the grant.
``(i) Reports.--Not later than December 31, 2003, and
periodically thereafter, the Administrator shall transmit to
Congress a report containing recommended funding levels for
grants under this section. The recommended funding levels shall
be sufficient to ensure the continued expeditious
implementation of municipal combined sewer overflow and
sanitary sewer overflow controls nationwide.''.
(d) Information on CSOS and SSOS.--
(1) Report to congress.--Not later than 3 years
after the date of enactment of this Act, the
Administrator of the Environmental Protection Agency
shall transmit to Congress a report summarizing--
(A) the extent of the human health and
environmental impacts caused by municipal
combined sewer overflows and sanitary sewer
overflows, including the location of discharges
causing such impacts, the volume of pollutants
discharged, and the constituents discharged;
(B) the resources spent by municipalities
to address these impacts; and
(C) an evaluation of the technologies used
by municipalities to address these impacts.
(2) Technology clearinghouse.--After transmitting a
report under paragraph (1), the Administrator shall
maintain a clearinghouse of cost-effective and
efficient technologies for addressing human health and
environmental impacts due to municipal combined sewer
overflows and sanitary sewer overflows.
Sec. 113. Fish Passage Devices at New Savannah Bluff Lock
and Dam, South Carolina. Section 348(l)(2) of the Water
Resources Development Act of 2000 is amended--
(1) in subparagraph (A), by striking ``Dam, at
Federal expense of an estimated $5,300,000'' and
inserting ``Dam and construct appropriate fish passage
devices at the Dam, at Federal expense''; and
(2) in subparagraph (B), by striking ``after repair
and rehabilitation,'' and inserting ``after carrying
out subparagraph (A),''.
Sec. 114. (a) Extinguishment of Reversionary Interests and
Use Restrictions.--With respect to the lands described in the
deed described in subsection (b)--
(1) the reversionary interests and the use
restrictions relating to port or industrial purposes
are extinguished;
(2) the human habitation or other building
structure use restriction is extinguished in each area
where the elevation is above the standard project flood
elevation; and
(3) the use of fill material to raise areas above
the standard project flood elevation, without
increasing the risk of flooding in or outside of the
floodplain, is authorized, except in any area
constituting wetland for which a permit under section
404 of the Federal Water Pollution Control Act (33
U.S.C. 1344) would be required.
(b) Affected Deed.--The deed referred to is the deed
recorded October 17, 1967, in book 291, page 148, Deed of
Records of Umatilla County, Oregon, executed by the United
States.
Sec. 115. Murrieta Creek, California. Section 101(b)(6) of
the Water Resources Development Act of 2000 is repealed.
Sec. 116. Penn Mine, Calaveras County, California. (a) In
General.--The Secretary of the Army shall reimburse East Bay
Municipal Water District for the project for aquatic ecosystem
restoration, Penn Mine, Calaveras County, California, carried
out under section 206 of the Water Resources Development Act of
1996 (33 U.S.C. 2330), $4,100,000 for the Federal share of
costs incurred by East Bay Municipal Utility District for work
carried out by East Bay Municipal Utility District for the
project. Such amounts shall be made available within 90 days of
enactment of this provision.
(b) Source of Funding.--Reimbursement under subsection (a)
shall be from amounts appropriated before the date of enactment
of this Act for the project described in subsection (a).
Sec. 117. The project for flood control, Greers Ferry Lake,
Arkansas, authorized by the Rivers and Harbors Act of June 28,
1938 (52 Stat. 1218), is modified to authorize the Secretary of
the Army to construct intake facilities for the benefit of
Lonoke and White Counties, Arkansas.
Sec. 118. The project for flood control, Chehalis River and
Tributaries, Washington, authorized by section 401(a) of the
Water Resources Development Act of 1986 (100 Stat. 4126), is
modified to authorize the Secretary of the Army to provide the
non-Federal interest credit toward the non-Federal share of the
cost of the project the cost of planning, design, and
construction work carried out by the non-Federal interest
before the date of execution of a cooperation agreement for the
project if the Secretary determines that the work is integral
to the project.
Sec. 119. Within the funds appropriated to the National
Park Service under the heading ``Operation of the National Park
System'' in Public Law 106-291, the Secretary of the Interior
shall provide a grant of $75,000 to the City of Ocean Beach,
New York, for repair of facilities at the Ocean Beach Pavilion
at Fire Island National Seashore.
Sec. 120. The National Park Service is directed to work
with Fort Sumter Tours, Inc., the concessionaire currently
providing services at Fort Sumter National Monument in South
Carolina, on an amicable solution of the current legal dispute
between the two parties. The Director of the Service is
directed to extend immediately the current contract through
March 15, 2001, to facilitate further negotiations and for 180
days if final settlement of all disputes is agreed to by both
parties.
Sec. 121. Title VIII--Land Conservation, Preservation and
Infrastructure Improvement of Public Law 106-291 is amended as
follows: after the first dollar amount insert: ``, to be
derived from the Land and Water Conservation Fund''.
Sec. 122. Gas to Liquids. Section 301(2) of the Energy
Policy Act of 1992 (Public Law 102-486; 42 U.S.C. 13211(2)) is
amended by inserting ``, including liquid fuels domestically
produced from natural gas'' after ``natural gas''.
Sec. 123. (a) The provisions of H.R. 4904 as passed in the
House of Representatives on September 26, 2000 are hereby
enacted into law.
Sec. 124. Appalachian National Scenic Trail. (a)
Acquisitions.--
(1) In general.--The Secretary of the Interior
shall--
(A) negotiate agreements with landowners
setting terms and conditions for the
acquisition of parcels of land and interests in
land totalling approximately 580 acres at
Saddleback Mountain near Rangeley, Maine, for
the benefit of the Appalachian National Scenic
Trail;
(B) complete the pending environmental
compliance process for the acquisitions; and
(C) acquire the parcels of land and
interests in land for consideration in the
amount of $4,000,000 plus closing costs
customarily paid by the United States.
(2) Acceptance of donations.--The Secretary may
accept as donations parcels of land and interests in
land at Saddleback Mountain, in addition to those
acquired by purchase under paragraph (1), for the
benefit of the Appalachian National Scenic Trail.
(b) Conveyance to the State.--The Secretary shall convey to
the State of Maine a portion of the land and interests in land
acquired under subsection (a) without consideration, subject to
such terms and conditions as the Secretary and the State of
Maine agree are necessary to ensure the protection of the
Appalachian National Scenic Trail.
Sec. 125. The provisions of S. 2273, as passed in the
United States Senate on October 5, 2000 and engrossed, are
hereby enacted into law.
Sec. 126. Section 116(a)(1)(A) of the Illinois and Michigan
Canal National Heritage Corridor Act of 1984 (98 Stat. 1467) is
amended by striking ``$250,000'' and inserting ``$1,000,000''.
Sec. 127. The provisions of S. 2885, as passed in the
United States Senate on October 5, 2000 and engrossed, are
hereby enacted into law.
Sec. 128. None of the funds provided in this or any other
Act may be used prior to July 31, 2001 to promulgate or enforce
a final rule to reduce during the 2000-2001 or 2001-2002 winter
seasons the use of snowmobiles below current use patterns at a
unit in the National Park System: Provided, That nothing in
this section shall be interpreted as amending any requirement
of the Clean Air Act: Provided further, That nothing in this
section shall preclude the Secretary from taking emergency
actions related to snowmobile use in any National Park based on
authorities which existed to permit such emergency actions as
of the date of enactment of this Act.
Sec. 129. The Secretary of the Interior shall extend until
March 31, 2001 the ``Extension of Standstill Agreement,''
entered into on November 22, 1999 by the United States of
America and the holders of interests in seven campsite leases
in Biscayne Bay, Miami-Dade County, Florida collectively known
as ``Stiltsville''.
Sec. 130. The Secretary of the Interior is authorized to
make a grant of $1,300,000 to the State of Minnesota or its
political subdivision from funds available to the National Park
Service under the heading ``Land Acquisition and State
Assistance'' in Public Law 106-291 to cover the cost of
acquisition of land in Lower Phalen Creek near St. Paul,
Minnesota in the Mississippi National River and Recreation
Area.
Sec. 131. Notwithstanding any provision of law or
regulation, funds appropriated in Public Law 106-291 for a
cooperative agreement for management of George Washington's
Boyhood Home, Ferry Farm, shall be transferred to the George
Washington's Fredericksburg Foundation, Inc. (formerly known as
Kenmore Association, Inc.) immediately upon signing of the
cooperative agreement.
Sec. 132. During the period beginning on the date of the
enactment of this Act and ending on June 1, 2001, funds made
available to the Secretary of the Interior may not be used to
pay salaries or expenses related to the issuance of a request
for proposal related to a light rail system to service Grand
Canyon National Park.
Sec. 133. None of the funds in this or any other Act may be
used by the Secretary of the Interior to remove the five foot
tall white cross located within the boundary of the Mojave
National Preserve in southern California first erected in 1934
by the Veterans of Foreign Wars along Cima Road approximately
11 miles south of Interstate 15.
Sec. 134. Section 6(g) of the Chesapeake and Ohio Canal
Development Act (16 U.S.C. 410y-4(g)) is amended by striking
``thirty'' and inserting ``40''.
Sec. 135. Funds provided in Public Law 106-291 for federal
land acquisition by the National Park Service in Fiscal Year
2001 for Brandywine Battlefield, Ice Age National Scenic Trail,
Mississippi National River and Recreation Area, Shenandoah
National Heritage Area, Fallen Timbers Battlefield and Fort
Miamis National Historic Site may be used for a grant to a
state, local government, or to a land management entity for the
acquisition of lands without regard to any restriction on the
use of federal land acquisition funds provided through the Land
and Water Conservation Act of 1965.
Sec. 136. Notwithstanding any other provision of law, in
accordance with Title IV--Wildland Fire Emergency
Appropriations, Public Law 106-291, from the $35,000,000
provided for community and private land fire assistance, the
Secretary of Agriculture, may use up to $9,000,000 for advance,
direct lump sum payments for assistance to eligible
individuals, businesses, or other entities, to accomplish the
purposes of providing assistance to non-federal entities most
affected by fire. To expedite such financial assistance being
provided to eligible recipients, the lump sum payments shall
not be subject to CFR Title 7 Sec. 3015; Title 7 Sec. 3019;
Title 7 Sec. 3052 related to the administration of Federal
financial assistance.
Sec. 137. (a) In General.--The first section of Public Law
91-660 (16 U.S.C. 459h) is amended--
(1) in the first sentence, by striking ``That, in''
and inserting the following:
``SECTION 1. GULF ISLANDS NATIONAL SEASHORE.
``(a) Establishment.--In''; and
(2) in the second sentence--
(A) by redesignating paragraphs (1) through
(6) as subparagraphs (A) through (F),
respectively, and indenting appropriately;
(B) by striking ``The seashore shall
comprise'' and inserting the following:
``(b) Composition.--
``(1) In general.--The seashore shall comprise the
areas described in paragraphs (2) and (3).
``(2) Areas included in boundary plan numbered ns-
gi-7100j.--The areas described in this paragraph are'':
and
(C) by adding at the end the following:
``(3) Cat island.--Upon its acquisition by the
Secretary, the area described in this paragraph is the
parcel consisting of approximately 2,000 acres of land
on Cat Island, Mississippi, as generally depicted on
the map entitled `Boundary Map, Gulf Islands National
Seashore, Cat Island, Mississippi', numbered 635/80085,
and dated November 9, 1999 (referred to in this title
as the `Cat Island Map').
``(4) Availability of map.--The Cat Island Map
shall be on file and available for public inspection in
the appropriate offices of the National Park
Service.''.
(b) Acquisition Authority.--Section 2 of Public Law 91-660
(16 U.S.C. 459h-1) is amended--
(1) in the first sentence of subsection (a), by
striking ``lands,'' and inserting ``submerged land,
land,''; and
(2) by adding at the end the following:
``(e) Acquisition Authority.--
``(1) In general.--The Secretary may acquire, from
a willing seller only--
``(A) all land comprising the parcel
described in subsection (b)(3) that is above
the mean line of ordinary high tide, lying and
being situated in Harrison County, Mississippi;
``(B) an easement over the approximately
150-acre parcel depicted as the `Boddie Family
Tract' on the Cat Island Map for the purpose of
implementing an agreement with the owners of
the parcel concerning the development and use
of the parcel; and
``(C)(i) land and interests in land on Cat
Island outside the 2,000-acre area depicted on
the Cat Island Map; and
``(ii) submerged land that lies within 1
mile seaward of Cat Island (referred to in this
title as the `buffer zone'), except that
submerged land owned by the State of
Mississippi (or a subdivision of the State) may
be acquired only by donation.
``(2) Administration.--
``(A) In general.--Land and interests in
land acquired under this subsection shall be
administered by the Secretary, acting through
the Director of the National Park Service.
``(B) Buffer zone.--Nothing in this title
or any other provision of law shall require the
State of Mississippi to convey to the Secretary
any right, title, or interest in or to the
buffer zone as a condition for the
establishment of the buffer zone.
``(3) Modification of boundary.--The boundary of
the seashore shall be modified to reflect the
acquisition of land under this subsection only after
completion of the acquisition.''.
(c) Regulation of Fishing.--Section 3 of Public Law 91-660
(16 U.S.C. 459h-2) is amended--
(1) by inserting ``(a) In General.--'' before ``The
Secretary''; and
(2) by adding at the end the following:
``(b) No Authority To Regulate Maritime Activities.--
Nothing in this title or any other provision of law shall
affect any right of the State of Mississippi, or give the
Secretary any authority, to regulate maritime activities,
including nonseashore fishing activities (including shrimping),
in any area that, on the date of enactment of this subsection,
is outside the designated boundary of the seashore (including
the buffer zone).''.
(d) Authorization of Management Agreements.--Section 5 of
Public Law 91-660 (16 U.S.C. 459h-4) is amended--
(1) by inserting ``(a) In General.--'' before
``Except''; and
(2) by adding at the end the following:
``(b) Agreements.--
``(1) In general.--The Secretary may enter into
agreements--
``(A) with the State of Mississippi for the
purposes of managing resources and providing
law enforcement assistance, subject to
authorization by State law, and emergency
services on or within any land on Cat Island
and any water and submerged land within the
buffer zone; and
``(B) with the owners of the approximately
150-acre parcel depicted as the `Boddie Family
Tract' on the Cat Island Map concerning the
development and use of the land.
``(2) No authority to enforce certain
regulations.--Nothing in this subsection authorizes the
Secretary to enforce Federal regulations outside the
land area within the designated boundary of the
seashore.''.
(e) Authorization of Appropriations.--Section 11 of Public
Law 91-660 (16 U.S.C. 459h-10) is amended--
(1) by inserting ``(a) In General.--'' before
``There''; and
(2) by adding at the end the following:
``(b) Authorization for Acquisition of Land.--In addition
to the funds authorized by subsection (a), there are authorized
to be appropriated such sums as are necessary to acquire land
and submerged land on and adjacent to Cat Island,
Mississippi.''.
Sec. 138. Percentage Limitations on Federal Thrift Savings
Plan Contributions. (a) Amendments Relating to FERS.--
(1) In general.--Subsection (a) of section 8432 of
title 5, United States Code, is amended--
(A) by striking ``(a)'' and inserting
``(a)(1)'';
(B) by striking ``10 percent'' and all that
follows through ``period.'' and inserting ``the
maximum percentage of such employee's or
Member's basic pay for such pay period
allowable under paragraph (2).''; and
(C) by adding at the end the following:
``(2) The maximum percentage allowable under this paragraph
shall be determined in accordance with the following table:
``In the case of a pay period beginnThe maximum percentage allowable is:
2001.......................................................... 11
2002.......................................................... 12
2003.......................................................... 13
2004.......................................................... 14
2005.......................................................... 15
2006 or thereafter...........................................100.''.
(2) Justices and judges.--Paragraph (2) of section
8440a(b) of title 5, United States Code, is amended to
read as follows:
``(2) The amount contributed by a justice or judge for any
pay period shall not exceed the maximum percentage of such
justice's or judge's basic pay for such pay period allowable
under section 8440f.''.
(3) Bankruptcy judges and magistrates.--Paragraph
(2) of section 8440b(b) of title 5, United States Code,
is amended by striking ``5 percent'' and all that
follows through ``period.'' and inserting ``the maximum
percentage of such bankruptcy judge's or magistrate's
basic pay for such pay period allowable under section
8440f.''.
(4) Court of federal claims judges.--Paragraph (2)
of section 8440c(b) of title 5, United States Code, is
amended by striking ``5 percent'' and all that follows
through ``period.'' and inserting ``the maximum
percentage of such judge's basic pay for such pay
period allowable under section 8440f.''.
(5) Judges of the united states court of appeals
for veterans claims.--The first sentence of section
8440d(b)(2) of title 5, United States Code, is amended
to read as follows: ``The amount contributed by a judge
of the United States Court of Appeals for Veterans
Claims for any pay period may not exceed the maximum
percentage of such judge's basic pay for such pay
period allowable under section 8440f.''.
(6) Members of the uniformed services.--
(A) Basic pay.--Subparagraph (A) of section
8440e(d)(1) of title 5, United States Code, is
amended by striking ``5 percent'' and all that
follows through ``period.'' and inserting ``the
maximum percentage of such member's basic pay
for such pay period allowable under section
8440f.''.
(B) Compensation.--Subparagraph (B) of
section 8440e(d)(1) of title 5, United States
Code, is amended by striking ``5 percent'' and
all that follows through ``period.'' and
inserting ``the maximum percentage of such
member's compensation for such pay period
(received under such section 206) allowable
under section 8440f.''.
(7) Maximum percentage allowable.--
(A) In general.--Title 5, United States
Code, is amended by inserting after section
8440e the following:
``Sec. 8440f. Maximum percentage allowable for certain participants
``The maximum percentage allowable under this section shall
be determined in accordance with the following table:
``In the case of a pay period beginnThe maximum percentage allowable is:
2001.......................................................... 6
2002.......................................................... 7
2003.......................................................... 8
2004.......................................................... 9
2005.......................................................... 10
2006 or thereafter...........................................100.''.
(B) Conforming amendment.--The table of
sections for chapter 84 of title 5, United
States Code, is amended by inserting after the
item relating to section 8440e the following:
``8440f. Maximum percentage allowable for certain participants.''.
(b) Amendments Relating to CSRS.--Paragraph (2) of section
8351(b) of title 5, United States Code, is amended--
(1) by striking ``(2)'' and inserting ``(2)(A)'';
(2) by striking ``5 percent'' and all that follows
through ``period.'' and inserting ``the maximum
percentage of such employee's or Member's basic pay for
such pay period allowable under subparagraph (B).'';
and
(3) by adding at the end the following:
``(B) The maximum percentage allowable under this
subparagraph shall be determined in accordance with the
following table:
``In the case of a pay period beginnThe maximum percentage allowable is:
2001.......................................................... 6
2002.......................................................... 7
2003.......................................................... 8
2004.......................................................... 9
2005.......................................................... 10
2006 or thereafter...........................................100.''.
(c) Effective Date.--
(1) In general.--The amendments made by this
section shall take effect on the date of enactment of
this Act.
(2) Coordination with election periods.--The
Executive Director shall by regulation determine the
first election period in which elections may be made
consistent with the amendments made by this section.
(3) Definitions.--For purposes of this section--
(A) the term ``election period'' means a
period afforded under section 8432(b) of title
5, United States Code; and
(B) the term ``Executive Director'' has the
meaning given such term by section 8401(13) of
title 5, United States Code.
Sec. 139. Exclusion of Elements of United States Secret
Service From Certain Activities. Section 7103(a)(3) of title 5,
United States Code, is amended--
(1) in subparagraph (F), by striking ``or'' at the
end;
(2) in subparagraph (G), by striking the period and
inserting ``; or''; and
(3) by adding at the end the following new
subparagraph:
``(H) the United States Secret Service and
the United States Secret Service Uniformed
Division.''.
Sec. 140. (a) The adjustment in rates of basic pay for the
statutory pay systems that takes effect in fiscal year 2001
under sections 5303 and 5304 of title 5, United States Code,
shall be an increase of 3.7 percent.
(b) Funds used to carry out this section shall be paid from
appropriations which are made to each applicable department or
agency for salaries and expenses for fiscal year 2001.
Sec. 141. Repeal of Mandatory Separation Requirement. (a)
In General.--Section 8335 of title 5, United States Code, is
amended--
(1) by striking subsection (c); and
(2) by redesignating subsections (d) and (e) as
subsections (c) and (d), respectively.
(b) Technical and Conforming Amendment.--Section 8339(q) of
title 5, United States Code, is amended by striking ``8335(d)''
and inserting ``8335(c)''.
Sec. 142. Section 223(a)(14) of the Juvenile Justice and
Delinquency Prevention Act of 1974 (42 U.S.C. 5633(a)(14) as
amended, is hereby amended by inserting after the phrase
``twenty-four hours'' the following new phrase: ``(except in
the case of Alaska where such time limit may be forty-eight
hours in fiscal years 2000 through 2002)''.
Sec. 143. (a) Section 336 of the Communications Act of 1934
(47 U.S.C. 336) is amended--
(1) by redesignating subsection (h) as subsection
(i); and
(2) by inserting after subsection (g) the
following:
``(h)(1) Within 60 days after receiving a request (made in
such form and manner and containing such information as the
Commission may require) under this subsection from a low-power
television station to which this subsection applies, the
Commission shall authorize the licensee or permittee of that
station to provide digital data service subject to the
requirements of this subsection as a pilot project to
demonstrate the feasibility of using low-power television
stations to provide high-speed wireless digital data service,
including Internet access to unserved areas.
``(2) The low-power television stations to which
this subsection applies are as follows:
``(A) KHLM-LP, Houston, Texas.
``(B) WTAM-LP, Tampa, Florida.
``(C) WWRJ-LP, Jacksonville, Florida.
``(D) WVBG-LP, Albany, New York.
``(E) KHHI-LP, Honolulu, Hawaii.
``(F) KPHE-LP (K19DD), Phoenix, Arizona.
``(G) K34FI, Bozeman, Montana.
``(H) K65GZ, Bozeman, Montana.
``(I) WXOB-LP, Richmond, Virginia.
``(J) WIIW-LP, Nashville, Tennessee.
``(K) A station and repeaters to be
determined by the Federal Communications
Commission for the sole purpose of providing
service to communities in the Kenai Peninsula
Borough and Matanuska Susitna Borough.
``(L) WSPY-LP, Plano, Illinois.
``(M) W24AJ, Aurora, Illinois.
``(3) Notwithstanding any requirement of section
553 of title 5, United States Code, the Commission
shall promulgate regulations establishing the
procedures, consistent with the requirements of
paragraphs (4) and (5), governing the pilot projects
for the provision of digital data services by certain
low power television licensees within 120 days after
the date of enactment of LPTV Digital Data Services
Act. The regulations shall set forth--
``(A) requirements as to the form, manner,
and information required for submitting
requests to the Commission to provide digital
data service as a pilot project;
``(B) procedures for testing interference
to digital television receivers caused by any
pilot project station or remote transmitter;
``(C) procedures for terminating any pilot
project station or remote transmitter or both
that causes interference to any analog or
digital full-power television stations, class A
television station, television translators or
any other users of the core television band;
``(D) specifications for reports to be
filed quarterly by each low power television
licensee participating in a pilot project;
``(E) procedures by which a low power
television licensee participating in a pilot
project shall notify television broadcast
stations in the same market upon commencement
of digital data services and for ongoing
coordination with local broadcasters during the
test period; and
``(F) procedures for the receipt and review
of interference complaints on an expedited
basis consistent with paragraph (5)(D).
``(4) A low-power television station to which this
subsection applies may not provide digital data service
unless--
``(A) the provision of that service,
including any remote return-path transmission
in the case of 2-way digital data service, does
not cause any interference in violation of the
Commission's existing rules, regarding
interference caused by low power television
stations to full-service analog or digital
television stations, class A television
stations, or television translator stations;
and
``(B) the station complies with the
Commission's regulations governing safety,
environmental, and sound engineering practices,
and any other Commission regulation under
paragraph (3) governing pilot program
operations.
``(5)(A) The Commission may limit the provision of
digital data service by a low-power television station
to which this subsection applies if the Commission
finds that--
``(i) the provision of 2-way digital data
service by that station causes any interference
that cannot otherwise be remedied; or
``(ii) the provision of 1-way digital data
service by that station causes any
interference.
``(B) The Commission shall grant any such station,
upon application (made in such form and manner and
containing such information as the Commission may
require) by the licensee or permittee of that station,
authority to move the station to another location, to
modify its facilities to operate on a different
channel, or to use booster or auxiliary transmitting
locations, if the grant of authority will not cause
interference to the allowable or protected service
areas of full service digital television stations,
National Television Standards Committee assignments, or
television translator stations, and provided, however,
no such authority shall be granted unless it is
consistent with existing Commission regulations
relating to the movement, modification, and use of non-
class A low power television transmission facilities in
order--
``(i) to operate within television channels
2 through 51, inclusive; or
``(ii) to demonstrate the utility of low-
power television stations to provide high-speed
2-way wireless digital data service.
``(C) The Commission shall require quarterly
reports from each station authorized to provide digital
data services under this subsection that include--
``(i) information on the station's
experience with interference complaints and the
resolution thereof;
``(ii) information on the station's market
success in providing digital data service; and
``(iii) such other information as the
Commission may require in order to administer
this subsection.
``(D) The Commission shall resolve any complaints
of interference with television reception caused by any
station providing digital data service authorized under
this subsection within 60 days after the complaint is
received by the Commission.
``(6) The Commission shall assess and collect from
any low-power television station authorized to provide
digital data service under this subsection an annual
fee or other schedule or method of payment comparable
to any fee imposed under the authority of this Act on
providers of similar services. Amounts received by the
Commission under this paragraph may be retained by the
Commission as an offsetting collection to the extent
necessary to cover the costs of developing and
implementing the pilot program authorized by this
subsection, and regulating and supervising the
provision of digital data service by low-power
television stations under this subsection. Amounts
received by the Commission under this paragraph in
excess of any amount retained under the preceding
sentence shall be deposited in the Treasury in
accordance with chapter 33 of title 31, United States
Code.
``(7) In this subsection, the term `digital data
service' includes--
``(A) digitally-based interactive broadcast
service; and
``(B) wireless Internet access, without
regard to--
``(i) whether such access is--
``(I) provided on a one-way
or a two-way basis;
``(II) portable or fixed;
or
``(III) connected to the
Internet via a band allocated
to Interactive Video and Data
Service; and
``(ii) the technology employed in
delivering such service, including the
delivery of such service via multiple
transmitters at multiple locations.
``(8) Nothing in this subsection limits the
authority of the Commission under any other provision
of law.''.
(b) The Federal Communications Commission shall submit a
report to the Congress on June 30, 2001, and June 30, 2002,
evaluating the utility of using low-power television stations
to provide high-speed digital data service. The reports shall
be based on the pilot projects authorized by section 336(h) of
the Communications Act of 1934 (47 U.S.C. 336(h)).
Sec. 144. (a) The Magnuson-Stevens Fishery Conservation and
Management Act (16 U.S.C. 1801 et. seq.) is amended--
(1) in section 303(d)(1)(A) by striking ``October
1, 2000,'' and inserting ``October 1, 2002,'';
(2) in section 303(d)(5) by striking ``October 1,
2000,'' and inserting ``October 1, 2002,'';
(3) in section 407(b) by striking ``October 1,
2000,'' and inserting ``October 1, 2002,''; and
(4) in section 407(c)(1) by striking ``October 1,
2000,'' and inserting ``October 1, 2002,''.
(b) Notwithstanding sections 303(d)(1)(A) and 303(d)(1)(B)
of the Magnuson-Stevens Fishery Conservation and Management
Act, as amended by this section, the Pacific Fishery Management
Council may recommend and the Secretary of Commerce may approve
and implement any fishery management plan, plan amendment, or
regulation, for fixed gear sablefish subject to the
jurisdiction of such Council, that--
(1) allows the use of more than one groundfish
fishing permit by each fishing vessel; and/or
(2) sets cumulative trip limit periods, up to
twelve months in any calendar year, that allow fishing
vessels a reasonable opportunity to harvest the full
amount of the associated trip limits.
Notwithstanding subsection (a), the Gulf of Mexico Fishery
Management Council may develop a biological, economic, and
social profile of any fishery under its jurisdiction that may
be considered for management under a quota management system,
including the benefits and consequences of the quota management
systems considered. The North Pacific Fishery Management
Council shall examine the fisheries under its jurisdiction,
particularly the Gulf of Alaska groundfish and Bering Sea crab
fisheries, to determine whether rationalization is needed. In
particular, the North Pacific Council shall analyze individual
fishing quotas, processor quotas, cooperatives, and quotas held
by communities. The analysis should include an economic
analysis of the impact of all options on communities and
processors as well as the fishing fleets. The North Pacific
Council shall present its analysis to the appropriations and
authorizing committees of the Senate and House of
Representatives in a timely manner.
(c)(1) Public Law 101-380, as amended by section 2204 of
chapter 2 of title II of Public Law 106-246, is amended
further--
(A) by striking the second sentence of section
5008(c) and inserting in lieu thereof ``The Federal
Advisory Committee Act (5 U.S.C. App. 2) shall not
apply to the Institute.'';
(B) by inserting the following sentence at the end
of section 5008(e): ``The administrative funds of the
Institute and the administrative funds of the North
Pacific Research Board created under Public Law 105-83
may be used to jointly administer such programs at the
discretion of the North Pacific Research Board.''; and
(C) in section 5006(c), as amended by this Act or
any other Act making appropriations for fiscal year
2001, by striking the colon immediately before the
first proviso and inserting in lieu thereof, ``of which
up to $3,000,000 may be used for the lease payment to
the Alaska SeaLife Center under section 5008(b)(2):''.
(2) Section 401(e) of Public Law 105-83 is amended--
(A) in paragraph (2) by striking ``and recommended
for Secretarial approval'';
(B) in paragraph (3)(A) by striking ``, who shall
be a co-chair of the Board'';
(C) in paragraph (3)(F) by striking ``, who shall
be a co-chair of the Board'';
(D) in paragraph (4)(A) by striking ``and
administer'';
(E) in paragraph (4)(B) by striking the first
sentence;
(F) by adding at the end the following new
paragraph:
``(5) All decisions of the Board, including grant
recommendations, shall be by majority vote of the
members listed in paragraphs (3)(A), (3)(F), (3)(G),
(3)(J), and (3)(N), in consultation with the other
members. The five voting members may act on behalf of
the Board in all matters of administration, including
the disposition of research funds not made available by
this section, at any time on or after October 1,
2000.''; and
(G) in paragraph (3) by adding at the end the
following:
``(N) one member who shall represent
fishing interests and shall be nominated by the
Board and appointed by the Secretary.''.
(3) Funds made available for the construction of the NOAA
laboratory at Lena Point shall be considered incremental
funding for the initial phase of construction at Lena Point for
site work and related infrastructure and systems installation.
(4) Notwithstanding any other provision of law, funds made
available by this Act or any other Act for the Alaska SeaLife
Center shall be considered direct payments for all purposes of
applicable law.
(5) Public Law 99-5 is amended--
(A) by inserting after section 3(e) the following:
``(f) The United States shall be represented on the
Transboundary Panel by seven panel members, of whom--
``(1) one shall be an official of the United States
Government, with salmon fishery management
responsibility and expertise;
``(2) one shall be an official of the State of
Alaska, with salmon fishery management responsibility
and expertise; and
``(3) five shall be individuals knowledgeable and
experienced in the salmon fisheries for which the
Transboundary Panel is responsible.'';
(B) by renumbering the remaining subsections;
(C) in section 3(g), as redesignated by this
subsection, by striking ``The appointing authorities''
and inserting in lieu thereof ``For the northern,
southern, and Fraser River panels, the appointing
authorities''; and
(D) in section 3(h)(3), as redesignated by this
subsection, by striking ``northern and southern'' and
inserting in lieu thereof ``northern, southern, and
transboundary''.
(6) The fishery research vessel for which funds were
appropriated in Public Law 106-113 shall be homeported in
Kodiak, Alaska, and is hereby named ``OSCAR DYSON''.
(d)(1) The Secretary of Commerce (hereinafter ``the
Secretary'') shall, after notice and opportunity for public
comment, adopt final regulations not later than May 1, 2001 to
implement a fishing capacity reduction program for crab
fisheries included in the Fishery Management Plan for
Commercial King and Tanner Crab Fisheries in the Bering Sea and
Aleutian Islands (hereinafter ``BSAI crab fisheries''). In
implementing the program the Secretary shall--
(A) reduce the fishing capacity in the BSAI crab
fisheries by permanently reducing the number of license
limitation program crab licenses;
(B) permanently revoke all fishery licenses,
fishery permits, area and species endorsements, and any
other fishery privileges, for all fisheries subject to
the jurisdiction of the United States, issued to a
vessel or vessels (or to persons on the basis of their
operation or ownership of that vessel or vessels) for
which a BSAI crab fisheries reduction permit is
surrendered and revoked under section 6011(b) of title
50, Code of Federal Regulations;
(C) ensure that the Secretary of Transportation is
notified of each vessel for which a reduction permit is
surrendered and revoked under the program, with a
request that such Secretary permanently revoke the
fishery endorsement of each such vessel and refuse
permission to transfer any such vessel to a foreign
flag under paragraph (5);
(D) ensure that vessels removed from the BSAI crab
fisheries under the program are made permanently
ineligible to participate in any fishery worldwide, and
that the owners of such vessels contractually agree
that such vessels will operate only under the United
States flag or be scrapped as a reduction vessel
pursuant to section 600.1011(c) of title 50, Code of
Federal Regulations;
(E) ensure that vessels removed from the BSAI crab
fisheries, the owners of such vessels, and the holders
of fishery permits for such vessels forever relinquish
any claim associated with such vessel, permits, and any
catch history associated with such vessel or permits
that could qualify such vessel, vessel owner, or permit
holder for any present or future limited access system
fishing permits in the United States fisheries based on
such vessel, permits, or catch history;
(F) not include the purchase of Norton Sound red
king crab or Norton Sound blue king crab endorsements
in the program, though any such endorsements associated
with a reduction permit or vessel made ineligible or
scrapped under the program shall also be surrendered
and revoked as if surrendered and revoked pursuant to
section 600.1011(b) of title 50, Code of Federal
Regulations;
(G) seek to obtain the maximum sustained reduction
in fishing capacity at the least cost by establishing
bidding procedures that--
(i) assign a bid score to each bid by
dividing the price bid for each reduction
permit by the total value of the crab landed in
the most recent five-year period in each crab
fishery from 1990 through 1999 under that
permit, with the value for each year determined
by multiplying the average price per pound
published by the State of Alaska in each year
for each crab fishery included in such
reduction permit by the total pounds landed in
each crab fishery under that permit in that
year; and
(ii) use a reverse auction in which the
lowest bid score ranks first, followed by each
bid with the next lowest bid score, until the
total bid amount of all bids equals a reduction
cost that the next lowest bid would cause to
exceed $100,000,000;
(H) not waive or otherwise make inapplicable any
requirements of the License Limitation Program
applicable to such crab fisheries, in particular any
requirements in sections 679.4(k) and (l) of title 50,
Code of Federal Regulations;
(I) not waive or otherwise make inapplicable any
catcher vessel sideboards implemented under the
American Fisheries Act (AFA), except that the North
Pacific Fishery Management Council shall recommend to
the Secretary and to the State of Alaska, not later
than February 16, 2001, and the Secretary and the State
of Alaska shall implement as appropriate, modifications
to such sideboards to the extent necessary to permit
AFA catcher vessels that remain in the crab fisheries
to share proportionately in any increase in crab
harvest opportunities that accrue to all remaining AFA
and non-AFA catcher vessels if the fishing capacity
reduction program required by this section is
implemented;
(J) establish sub-amounts and repayment fees for
each BSAI crab fishery prosecuted under a separate
endorsement for repayment of the reduction loan, such
that--
(i) a reduction loan sub-amount is
established for each separate BSAI crab fishery
(other than Norton Sound red king crab or
Norton Sound blue king crab) by dividing the
total value of the crab landed in that fishery
under all reduction permits by the total value
of all crab landed under such permits in the
BSAI crab fisheries (determined using the same
average prices and years used under
subparagraph (G)(i) of this paragraph), and
multiplying the reduction loan amount by the
percentage expressed by such ratio; and
(ii) fish sellers who participate in the
crab fishery under each endorsement repay the
reduction loan sub-amount attributable to that
fishery; and
(K) notwithstanding section 1111(b) of the Merchant
Marine Act, 1936 (46 U.S.C. App. 1279f(b)(4)),
establish a repayment period for the reduction loan of
not less than 30 years.
(2)(A) Only persons to whom a non-interim BSAI crab
license and an area/species endorsement have been
issued (other than persons to whom only a license and
an area/species endorsement for Norton Sound red king
crab or Norton Sound blue king crab have been issued)
for vessels that--
(i) qualify under the License Limitation
Program criteria set forth in section 679.4 of
title 50, Code of Federal Regulations, and
(ii) have made at least one landing of BSAI
crab in either 1996, 1997, or prior to February
7 in 1998, may submit a bid in the fishing
capacity reduction program established by this
section.
(B) After the date of enactment of this section--
(i) no vessel 60 feet or greater in length
overall may participate in any BSAI crab
fishery (other than for Norton Sound red king
crab or Norton Sound blue king crab) unless
such vessel meets the requirements set forth in
subparagraphs (A)(i) and (A)(ii) of this
paragraph; and
(ii) no vessel between 33 and 60 feet in
length overall may participate in any BSAI crab
fishery (other than for Norton Sound red king
crab or Norton Sound blue king crab) unless
such vessel meets the requirements set forth in
subparagraph (A)(i) of this paragraph. Nothing
in this paragraph shall be construed to affect
the requirements for participation in the
fisheries for Norton Sound red king crab or
Norton Sound blue king crab. The Secretary may,
on a case by case basis and after notice and
opportunity for public comment, waive the
application of subparagraph (A)(ii) of this
paragraph if the Secretary determines such
waiver is necessary to implement one of the
specific exemptions to the recent participation
requirement that were recommended by the North
Pacific Fishery Management Council in the
record of its October, 1998 meeting.
(3) The fishing capacity reduction program required
under this subsection shall be implemented under this
subsection and sections 312(b)-(e) of the Magnuson-
Stevens Fishery Conservation and Management Act (16
U.S.C. 1861a(b)-(e)). Section 312 and the regulations
found in Subpart L of Part 600 of title 50, Code of
Federal Regulations, shall apply only to the extent
such section or regulations are not inconsistent with
or made inapplicable by the specific provisions of this
subsection. Sections 600.1001, 600.1002, 600.1003,
600.1005, 600.1010(b), 600.1010(d)(1), 600.1011(d), the
last sentence of 600.1011(a), and the last sentence of
600.1014(f) of such Subpart shall not apply to the
program implemented under this subsection. The program
shall be deemed accepted under section 600.1004, and
any time period specified in Subpart L that would
prevent the Secretary from complying with the May 1,
2001 date required by this subsection shall be modified
as appropriate to permit compliance with that date. The
referendum required for the program under this
subsection shall be a post-bidding referendum under
section 600.1010 of title 50, Code of Federal
Regulations.
(4)(A) The fishing capacity reduction program
required under this subsection is authorized to be
financed in equal parts through a reduction loan of
$50,000,000 under sections 1111 and 1112 of title XI of
the Merchant Marine Act, 1936 (46 U.S.C. App. 1279f and
1279g) and $50,000,000 which is authorized to be
appropriated for the purposes of such program.
(B) Of the $1,000,000 appropriated in section 120
of Division A of Public Law 105-277 for the cost of a
direct loan in the Bering Sea and Aleutian Islands crab
fisheries--
(i) $500,000 shall be for the cost of
guaranteeing the reduction loan required under
subparagraph (A) of this paragraph in
accordance with the requirements of the Federal
Credit Reform Act; and
(ii) $500,000 shall be available to the
Secretary to pay for the cost of implementing
the fishing capacity reduction program required
by this subsection.
(C) The funds described in this subsection shall
remain available, without fiscal year limitation, until
expended. Any funds not used for the fishing capacity
reduction program required by this subsection, whether
due to a rejection by referendum or otherwise, shall be
available on or after October 15, 2002, without fiscal
year limitation, for assistance to fishermen or fishing
communities.
(5)(A) The Secretary of Transportation shall, upon
notification and request by the Secretary, for each
vessel identified in such notification and request--
(i) permanently revoke any fishery
endorsement issued to such vessel under section
12108 of title 46, United States Code; and
(ii) refuse to grant the approval required
under section 9(c)(2) of the Shipping Act, 1916
(46 U.S.C. App. 808(c)(2)) for the placement of
such vessel under foreign registry or the
operation of such vessel under the authority of
a foreign country.
(B) The Secretary shall, after notice and
opportunity for public comment, adopt final regulations
not later than May 1, 2001 to prohibit any vessel for
which a reduction permit is surrendered and revoked
under the fishing capacity reduction program required
by this section from engaging in fishing activities on
the high seas or under the jurisdiction of any foreign
country while operating under the United States flag.
(6) The purpose of this subsection is to implement
a fishing capacity reduction program for the BSAI crab
fisheries that results in final action to permanently
remove harvesting capacity from such fisheries prior to
December 31, 2001. In implementing this subsection the
Secretary is directed to use, to the extent
practicable, information collected and maintained by
the State of Alaska. Any requirements of the Paperwork
Reduction Act, the Regulatory Flexibility Act, or any
Executive Order that would, in the opinion of the
Secretary, prevent the Secretary from meeting the
deadlines set forth in this subsection shall not apply
to the fishing capacity reduction program or the
promulgation of regulations to implement such program
required by this subsection. Nothing in this subsection
shall be construed to prohibit the North Pacific
Fishery Management Council from recommending, or the
Secretary from approving, changes to any Fishery
Management Plan, License Limitation Program, or
American Fisheries Act provisions affecting catcher
vessel sideboards in accordance with applicable law:
Provided, That except as specifically provided in this
subsection, such Council may not recommend, and the
Secretary may not approve, any action that would have
the effect of increasing the number of vessels eligible
to participate in the BSAI crab fisheries after March
1, 2001.
(e)(1) This subsection may be referred to as the ``Pribilof
Islands Transition Act''.
(2) The purpose of this subsection is to complete the
orderly withdrawal of the National Oceanic and Atmospheric
Administration from the civil administration of the Pribilof
Islands, Alaska.
(3) Public Law 89-702 (16 U.S.C. 1151 et seq.), popularly
known and referred to in this subsection as the Fur Seal Act of
1966, is amended by amending section 206 (16 U.S.C. 1166) to
read as follows:
``Sec. 206. (a)(1) Subject to the availability of
appropriations, the Secretary shall provide financial
assistance to any city government, village corporation, or
tribal council of St. George, Alaska, or St. Paul, Alaska.
``(2) Notwithstanding any other provision of law relating
to matching funds, funds provided by the Secretary as
assistance under this subsection may be used by the entity as
non-Federal matching funds under any Federal program that
requires such matching funds.
``(3) The Secretary may not use financial assistance
authorized by this Act--
``(A) to settle any debt owed to the United States;
``(B) for administrative or overhead expenses; or
``(C) for contributions sought or required from any
person for costs or fees to clean up any matter that
was caused or contributed to by such person on or after
March 15, 2000.
``(4) In providing assistance under this subsection the
Secretary shall transfer any funds appropriated to carry out
this section to the Secretary of the Interior, who shall
obligate such funds through instruments and procedures that are
equivalent to the instruments and procedures required to be
used by the Bureau of Indian Affairs pursuant to title IV of
the Indian Self-Determination and Education Assistance Act (25
U.S.C. 450 et seq.).
``(5) In any fiscal year for which less than all of the
funds authorized under subsection (c)(1) are appropriated, such
funds shall be distributed under this subsection on a pro rata
basis among the entities referred to in subsection (c)(1) in
the same proportions in which amounts are authorized by that
subsection for grants to those entities.
``(b)(1) Subject to the availability of appropriations, the
Secretary shall provide assistance to the State of Alaska for
designing, locating, constructing, redeveloping, permitting, or
certifying solid waste management facilities on the Pribilof
Islands to be operated under permits issued to the City of St.
George and the City of St. Paul, Alaska, by the State of Alaska
under section 46.03.100 of the Alaska Statutes.
``(2) The Secretary shall transfer any appropriations
received under paragraph (1) to the State of Alaska for the
benefit of rural and Native villages in Alaska for obligation
under section 303 of Public Law 104-182, except that subsection
(b) of that section shall not apply to those funds.
``(3) In order to be eligible to receive financial
assistance under this subsection, not later than 180 days after
the date of enactment of this paragraph, each of the Cities of
St. Paul and St. George shall enter into a written agreement
with the State of Alaska under which such City shall identify
by its legal boundaries the tract or tracts of land that such
City has selected as the site for its solid waste management
facility and any supporting infrastructure.
``(c) There are authorized to be appropriated to the
Secretary for fiscal years 2001, 2002, 2003, 2004, and 2005--
``(1) for assistance under subsection (a) a total
not to exceed--
``(A) $9,000,000, for grants to the City of
St. Paul;
``(B) $6,300,000, for grants to the
Tanadgusix Corporation;
``(C) $1,500,000, for grants to the St.
Paul Tribal Council;
``(D) $6,000,000, for grants to the City of
St. George;
``(E) $4,200,000, for grants to the St.
George Tanaq Corporation; and
``(F) $1,000,000, for grants to the St.
George Tribal Council; and
``(2) for assistance under subsection (b), for
fiscal years 2001, 2002, 2003, 2004, and 2005 a total
not to exceed--
``(A) $6,500,000 for the City of St. Paul;
and
``(B) $3,500,000 for the City of St.
George.
``(d) None of the funds authorized by this section may be
available for any activity a purpose of which is to influence
legislation pending before the Congress, except that this
subsection shall not prevent officers or employees of the
United States or of its departments, agencies, or commissions
from communicating to Members of Congress, through proper
channels, requests for legislation or appropriations that they
consider necessary for the efficient conduct of public
business.
``(e) Neither the United States nor any of its agencies,
officers, or employees shall have any liability under this Act
or any other law associated with or resulting from the
designing, locating, contracting for, redeveloping, permitting,
certifying, operating, or maintaining any solid waste
management facility on the Pribilof Islands as a consequence
of--
``(1) having provided assistance to the State of
Alaska under subsection (b); or
``(2) providing funds for, or planning,
constructing, or operating, any interim solid waste
management facilities that may be required by the State
of Alaska before permanent solid waste management
facilities constructed with assistance provided under
subsection (b) are complete and operational.
``(f) Each entity which receives assistance authorized
under subsection (c) shall submit an audited statement listing
the expenditure of that assistance to the Committee on
Appropriations and the Committee on Resources of the House of
Representatives and the Committee on Appropriations and the
Committee on Commerce, Science, and Transportation of the
Senate, on the last day of fiscal years 2002, 2004, and 2006.
``(g) Amounts authorized under subsection (c) are intended
by Congress to be provided in addition to the base funding
appropriated to the National Oceanic and Atmospheric
Administration in fiscal year 2000.''.
(4) Section 205 of the Fur Seal Act of 1966 (16
U.S.C. 1165) is amended--
(A) by amending subsection (c) to read as
follows:
``(c) Not later than 3 months after the date of the
enactment of the Pribilof Islands Transition Act, the Secretary
shall submit to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on Resources of
the House of Representatives a report that includes--
``(1) a description of all property specified in
the document referred to in subsection (a) that has
been conveyed under that subsection;
``(2) a description of all Federal property
specified in the document referred to in subsection (a)
that is going to be conveyed under that subsection; and
``(3) an identification of all Federal property on
the Pribilof Islands that will be retained by the
Federal Government to meet its responsibilities under
this Act, the Convention, and any other applicable
law.''; and
(B) by striking subsection (g).
(5)(A)(i) The Secretary of Commerce shall not be
considered to have any obligation to promote or
otherwise provide for the development of any form of an
economy not dependent on sealing on the Pribilof
Islands, Alaska, including any obligation under section
206 of the Fur Seal Act of 1966 (16 U.S.C. 1166) or
section 3(c)(1)(A) of Public Law 104-91 (16 U.S.C. 1165
note).
(ii) This subparagraph shall not affect any cause
of action under section 206 of the Fur Seal Act of 1966
(16 U.S.C. 1166) or section 3(c)(1)(A) of Public Law
104-91 (16 U.S.C. 1165 note)--
(I) that arose before the date of the
enactment of this title; and
(II) for which a judicial action is filed
before the expiration of the 5-year period
beginning on the date of the enactment of this
title.
(iii) Nothing in this subsection shall be construed
to imply that--
(I) any obligation to promote or otherwise
provide for the development in the Pribilof
Islands of any form of an economy not dependent
on sealing was or was not established by
section 206 of the Fur Seal Act of 1966 (16
U.S.C. 1166), section 3(c)(1)(A) of Public Law
104-91 (16 U.S.C. 1165 note), or any other
provision of law; or
(II) any cause of action could or could not
arise with respect to such an obligation.
(iv) Section 3(c)(1) of Public Law 104-91 (16
U.S.C. 1165 note) is amended by striking subparagraph
(A) and redesignating subparagraphs (B) through (D) in
order as subparagraphs (A) through (C).
(B)(i) Subject to paragraph (5)(B)(ii), there are
terminated all obligations of the Secretary of Commerce
and the United States to--
(I) convey property under section 205 of
the Fur Seal Act of 1966 (16 U.S.C. 1165); and
(II) carry out cleanup activities,
including assessment, response, remediation,
and monitoring, except for postremedial
measures such as monitoring and operation and
maintenance activities related to National
Oceanic and Atmospheric Administration
administration of the Pribilof Islands, Alaska,
under section 3 of Public Law 104-91 (16 U.S.C.
1165 note) and the Pribilof Islands
Environmental Restoration Agreement between the
National Oceanic and Atmospheric Administration
and the State of Alaska, signed January 26,
1996.
(ii) Paragraph (5)(B)(i) shall apply on and after
the date on which the Secretary of Commerce certifies
that--
(I) the State of Alaska has provided
written confirmation that no further corrective
action is required at the sites and operable
units covered by the Pribilof Islands
Environmental Restoration Agreement between the
National Oceanic and Atmospheric Administration
and the State of Alaska, signed January 26,
1996, with the exception of postremedial
measures, such as monitoring and operation and
maintenance activities;
(II) the cleanup required under section
3(a) of Public Law 104-91 (16 U.S.C. 1165 note)
is complete;
(III) the properties specified in the
document referred to in subsection (a) of
section 205 of the Fur Seal Act of 1966 (16
U.S.C. 1165(a)) can be unconditionally offered
for conveyance under that section; and
(IV) all amounts appropriated under section
206(c)(1) of the Fur Seal Act of 1966, as
amended by this title, have been obligated.
(iii)(I) On and after the date on which section
3(b)(5) of Public Law 104-91 (16 U.S.C. 1165 note) is
repealed pursuant to subparagraph (C), the Secretary of
Commerce may not seek or require financial contribution
by or from any local governmental entity of the
Pribilof Islands, any official of such an entity, or
the owner of land on the Pribilof Islands, for cleanup
costs incurred pursuant to section 3(a) of Public Law
104-91 (as in effect before such repeal), except as
provided in subparagraph (B)(iii)(II).
(II) Subparagraph (B)(iii)(I) shall not limit the
authority of the Secretary of Commerce to seek or
require financial contribution from any person for
costs or fees to clean up any matter that was caused or
contributed to by such person on or after March 15,
2000.
(iv) For purposes of paragraph (2)(C), the
following requirements shall not be considered to be
conditions on conveyance of property:
(I) Any requirement that a potential
transferee must allow the National Oceanic and
Atmospheric Administration continued access to
the property to conduct environmental
monitoring following remediation activities.
(II) Any requirement that a potential
transferee must allow the National Oceanic and
Atmospheric Administration access to the
property to continue the operation, and
eventual closure, of treatment facilities.
(III) Any requirement that a potential
transferee must comply with institutional
controls to ensure that an environmental
cleanup remains protective of human health or
the environment that do not unreasonably affect
the use of the property.
(IV) Valid existing rights in the property,
including rights granted by contract, permit,
right-of-way, or easement.
(V) The terms of the documents described in
subparagraph (d)(2).
(C) Effective on the date on which the Secretary of
Commerce makes the certification described in
subparagraph (b)(2), the following provisions are
repealed:
(i) Section 205 of the Fur Seal Act of 1966
(16 U.S.C. 1165).
(ii) Section 3 of Public Law 104-91 (16
U.S.C. 1165 note).
(D)(i) Nothing in this subsection shall affect any
obligation of the Secretary of Commerce, or of any
Federal department or agency, under or with respect to
any document described in subparagraph (D)(ii) or with
respect to any lands subject to such a document.
(ii) The documents referred to in subparagraph
(D)(i) are the following:
(I) The Transfer of Property on the
Pribilof Islands: Description, Terms, and
Conditions, dated February 10, 1984, between
the Secretary of Commerce and various Pribilof
Island entities.
(II) The Settlement Agreement between
Tanadgusix Corporation and the City of St.
Paul, dated January 11, 1988, and approved by
the Secretary of Commerce on February 23, 1988.
(III) The Memorandum of Understanding
between Tanadgusix Corporation, Tanaq
Corporation, and the Secretary of Commerce,
dated December 22, 1976.
(E)(i) Except as provided in subparagraph (E)(ii),
the definitions set forth in section 101 of the Fur
Seal Act of 1966 (16 U.S.C. 1151) shall apply to this
paragraph.
(ii) For purposes of this paragraph, the term
``Natives of the Pribilof Islands'' includes the
Tanadgusix Corporation, the St. George Tanaq
Corporation, and the city governments and tribal
councils of St. Paul and St. George, Alaska.
(6)(A) Section 3 of Public Law 104-91 (16 U.S.C.
1165 note) and the Fur Seal Act of 1966 (16 U.S.C. 1151
et seq.) are amended by--
(i) striking ``(d)'' and all that follows
through the heading for subsection (d) of
section 3 of Public Law 104-91 and inserting
``SEC. 212.''; and
(ii) moving and redesignating such
subsection so as to appear as section 212 of
the Fur Seal Act of 1966.
(B) Section 201 of the Fur Seal Act of 1966 (16
U.S.C. 1161) is amended by striking ``on such Islands''
and insert ``on such property''.
(C) The Fur Seal Act of 1966 (16 U.S.C. 1151 et
seq.) is amended by inserting before title I the
following:
``Section 1. This Act may be cited as the `Fur Seal Act of
1966'.''.
(7) Section 3 of Public Law 104-91 (16 U.S.C. 1165
note) is amended--
(A) by striking subsection (f) and
inserting the following:
``(f)(1) There are authorized to be appropriated
$10,000,000 for each of fiscal years 2001, 2002, 2003, 2004,
and 2005 for the purposes of carrying out this section.
``(2) None of the funds authorized by this subsection may
be expended for the purpose of cleaning up or remediating any
landfills, wastes, dumps, debris, storage tanks, property,
hazardous or unsafe conditions, or contaminants, including
petroleum products and their derivatives, left by the
Department of Defense or any of its components on lands on the
Pribilof Islands, Alaska.''; and
(B) by adding at the end the following:
``(g)(1) Of amounts authorized under subsection (f) for
each of fiscal years 2001, 2002, 2003, 2004, and 2005, the
Secretary may provide to the State of Alaska up to $2,000,000
per fiscal year to capitalize a revolving fund to be used by
the State for loans under this subsection.
``(2) The Secretary shall require that any revolving fund
established with amounts provided under this subsection shall
be used only to provide low-interest loans to Natives of the
Pribilof Islands to assess, respond to, remediate, and monitor
contamination from lead paint, asbestos, and petroleum from
underground storage tanks.
``(3) The definitions set forth in section 101 of the Fur
Seal Act of 1966 (16 U.S.C. 1151) shall apply to this section,
except that the term `Natives of the Pribilof Islands' includes
the Tanadgusix and Tanaq Corporations.
``(4) Before the Secretary may provide any funds to the
State of Alaska under this section, the State of Alaska and the
Secretary must agree in writing that, on the last day of fiscal
year 2011, and of each fiscal year thereafter until the full
amount provided to the State of Alaska by the Secretary under
this section has been repaid to the United States, the State of
Alaska shall transfer to the Treasury of the United States
monies remaining in the revolving fund, including principal and
interest paid into the revolving fund as repayment of loans.''.
(f)(1) The President, after consultation with the Governor
of the State of Hawaii, may designate any Northwestern Hawaiian
Islands coral reef or coral reef ecosystem as a coral reef
reserve to be managed by the Secretary of Commerce.
(2) Upon the designation of a reserve under paragraph (1)
by the President, the Secretary shall--
(A) take action to initiate the designation of the
reserve as a National Marine Sanctuary under sections
303 and 304 of the National Marine Sanctuaries Act (16
U.S.C. 1433);
(B) establish a Northwestern Hawaiian Islands
Reserve Advisory Council under section 315 of that Act
(16 U.S.C. 1445a), the membership of which shall
include at least 1 representative from Native Hawaiian
groups; and
(C) until the reserve is designated as a National
Marine Sanctuary, manage the reserve in a manner
consistent with the purposes and policies of that Act.
(3) Notwithstanding any other provision of law, no closure
areas around the Northwestern Hawaiian Islands shall become
permanent without adequate review and comment.
(4) The Secretary shall work with other Federal agencies
and the Director of the National Science Foundation, to develop
a coordinated plan to make vessels and other resources
available for conservation or research activities for the
reserve.
(5) If the Secretary has not designated a national marine
sanctuary in the Northwestern Hawaiian Islands under sections
303 and 304 of the National Marine Sanctuaries Act (16 U.S.C.
1433, 1434) before October 1, 2005, the Secretary shall conduct
a review of the management of the reserve under section 304(e)
of that Act (16 U.S.C. 1434(e)).
(6) No later than 6 months after the date of enactment of
this Act, the Secretary shall submit a report to the Senate
Committee on Commerce, Science, and Transportation and the
House of Representatives Committee on Resources, describing
actions taken to implement this subsection, including costs of
monitoring, enforcing, and addressing marine debris, and the
extent to which the fiscal or other resources necessary to
carry out this subsection are reflected in the Budget of the
United States Government submitted by the President under
section 1104 of title 31, United States Code.
(7) There are authorized to be appropriated to the
Secretary of Commerce to carry out the provisions of this
subsection such sums, not exceeding $4,000,000 for each of
fiscal years 2001, 2002, 2003, 2004, and 2005, as are reported
under paragraph (5) to be reflected in the Budget of the United
States Government.
(g) Section 111(b)(1) of the Sustainable Fisheries Act (16
U.S.C. 1855 nt) is amended by striking the last sentence and
inserting, ``There are authorized to be appropriated to carry
out this subsection $500,000 for each fiscal year.''.
Sec. 145. (a) Section 4(b)(1) of the Department of State
Special Agents Retirement Act of 1998 (22 U.S.C. 4044 note;
Public Law 105-382; 112 Stat. 3409) is amended by inserting
``or participant who was serving as of January 1, 1997'' after
``employed participant''.
(b) The amendment made by this section shall take effect on
January 1, 2001.
Sec. 146. (a) Congress makes the following findings:
(1) Total steel imports in 2000 will be over 2\1/2\
times higher than in 1991, continuing the alarming
trend of sharply increasing steel imports over the past
decade.
(2) Unprecedented levels of steel imports flooded
the United States market in 1998 and 1999, causing a
crisis in which thousands of steelworkers were laid off
and 6 steel companies went bankrupt.
(3) The domestic steel industry still has not had
an opportunity to recover from the 1998-1999 steel
import crisis, and steel imports are again causing
serious injury to United States steel producers and
workers.
(4) Total steel imports through August 2000 are 17
percent higher than over the same period in 1999 and
greater even than imports over the same period in 1998,
a record year.
(5) Steel prices continue to be depressed, with
hot-rolled steel prices 12 percent lower in August 2000
than in the first quarter of 1998, and average import
customs values for all steel products more than 15
percent lower over the same period.
(6) The United States Government must maintain and
fully enforce all existing relief against foreign
unfair trade.
(7) The United States steel industry is a clean,
highly efficient industry having modernized itself at
great human and financial cost, shedding over 330,000
jobs and investing more than $50,000,000,000 over the
last 20 years.
(8) Capacity utilization in the United States steel
industry has fallen sharply since the beginning of the
year and the market capitalization and debt ratings of
the major United States steel firms are at precarious
levels.
(9) The Department of Commerce recently documented
the underlying market-distorting practices and
longstanding structural problems that plague the global
steel trade with excess capacity and cause diversion of
unfairly traded foreign steel to the United States.
(10) The President recognized that unfair trade
played a significant role in the devastating import
surge of steel and recognized the need to vigorously
enforce the trade laws.
(b) Congress calls upon the President--
(1) to take all appropriate action within his power
to provide relief from injury caused by steel imports;
and
(2) to immediately request the United States
International Trade Commission to commence an expedited
investigation for positive adjustment under section 201
of the Trade Act of 1974 of such steel imports.
Sec. 147. Section 5(b)(1) of the Act of January 2, 1951 (15
U.S.C. 1175(b)(1); popularly known as the ``Johnson Act'') is
amended by inserting ``for a voyage or a segment of a voyage
that begins and ends in the State of Hawaii, or'' after
``Except''.
Sec. 148. (a) Section 312(a)(7) of the Communications Act
of 1934 (47 U.S.C. 312(a)(7)) is amended by inserting ``, other
than a non-commercial educational broadcast station,'' after
``use of a broadcasting station''.
(b) The Federal Communications Commission shall take no
action against any non-commercial educational broadcast station
which declines to carry a political advertisement.
Sec. 149. The Small Business Innovation Research program,
otherwise expiring at the end of fiscal year 2000, is
authorized to continue in effect during fiscal year 2001.
Sec. 150. There is hereby appropriated for payment to the
Ricky Ray Hemophilia Relief Fund, as provided by Public Law
105-369, $105,000,000, of which notwithstanding any other
provision of law $10,000,000 shall be for program management of
the Health Resources and Services Administration, to remain
available until expended.
Sec. 151. (a) There is hereby appropriated to a separate
account to be established in the Department of Labor for
expenses of administering the Energy Employees Occupational
Illness Compensation Act, $60,400,000, to remain available
until expended: Provided, That the Secretary of Labor is
authorized to transfer to any Executive agency with authority
under the Energy Employees Occupational Illness Compensation
Act, such sums as may be necessary in FY 2001 to carry out
those authorities.
(b) For purposes of the Balanced Budget and Emergency
Deficit Control Act of 1985, amounts appropriated under
subsection (a) shall be direct spending: Provided, That amounts
appropriated annually thereafter for such administrative
expenses shall be direct spending.
Sec. 152. Treatment of Certain Cancer Hospitals. (a) In
General.--Section 1886(d)(1)(B)(v) of the Social Security Act
(42 U.S.C. 1395ww(d)(1)(B)(v)) is amended--
(1) in subclause (I) by striking ``or'' at the end;
(2) in subclause (II) by striking the semicolon at
the end and inserting ``, or''; and
(3) by adding at the end the following:
``(III) a hospital that was recognized as a
clinical cancer research center by the National Cancer
Institute of the National Institutes of Health as of
February 18, 1998, that has never been reimbursed for
inpatient hospital services pursuant to a reimbursement
system under a demonstration project under section
1814(b), that is a freestanding facility organized
primarily for treatment of and research on cancer and
is not a unit of another hospital, that as of the date
of the enactment of this subclause, is licensed for 162
acute care beds, and that demonstrates for the 4-year
period ending on June 30, 1999, that at least 50
percent of its total discharges have a principal
finding of neoplastic disease, as defined in
subparagraph (E);'' and
(b) Conforming Amendment.--Section 1886(d)(1)(E) of the
Social Security Act (42 U.S.C. 1395ww(d)(1)(E)) is amended by
striking ``For purposes of subparagraph (B)(v)(II)'' and
inserting ``For purposes of subclauses (II) and (III) of
subparagraph (B)(v)''.
(c) Payment.--
(1) Application to cost reporting periods.--Any
classification by reason of section
1886(d)(1)(B)(v)(III) of the Social Security Act (as
added by subsection (a)) shall apply to 12-month cost
reporting periods beginning on or after July 1, 1999.
(2) Base year.--Notwithstanding the provisions of
section 1886(b)(3)(E) of such Act (42 U.S.C.
1395ww(b)(3)(E)) or other provisions to the contrary,
the base cost reporting period for purposes of
determining the target amount for any hospital
classified by reason of section 1886(d)(1)(B)(v)(III)
of such Act (as added by subsection (a)) shall be the
12-month cost reporting period beginning on July 1,
1995.
(3) Deadline for payments.--Any payments owed to a
hospital by reason of this subsection shall be made
expeditiously, but in no event later than 1 year after
the date of the enactment of this Act.
Sec. 153. (a) Section 4(2) of the Delta Development Act (42
U.S.C. 3121 note; Public Law 100-460) is amended--
(1) by inserting ``Alabama,'' before ``Arkansas'';
(2) in paragraph (G), by striking ``and'' at the
end;
(3) in paragraph (H)--
(A) by striking ``and'' before ``such'';
and
(B) by inserting ``and'' after the
semicolon at the end; and
(4) by adding at the end the following:
``(I) the Alabama counties of Pickens,
Greene, Sumter, Choctaw, Clarke, Washington,
Marengo, Hale, Perry, Wilcox, Lowndes, Bullock,
Macon, Barbour, Russell, and Dallas;'';
(b) At the end of section 382A of ``The Delta Regional
Authority Act of 2000'' as incorporated in this Act, insert the
following:
``(4) Notwithstanding any other provision of law,
the State of Alabama shall be a full member of the
Delta Regional Authority and shall be entitled to all
rights and privileges that said membership affords to
all other participating States in the Delta Regional
Authority.''.
SEC. 154. NORTHERN WISCONSIN.
(a) Definition of Northern Wisconsin.--In this section, the
term ``northern Wisconsin'' means the counties of Douglas,
Ashland, Bayfield, and Iron, Wisconsin.
(b) Establishment of Program.--The Secretary of the Army
may establish a pilot program to provide environmental
assistance to non-Federal interests in northern Wisconsin.
(c) Form of Assistance.--Assistance under this section may
be in the form of design and reconstruction assistance or
water-related environmental infrastructure and resource
protection and development projects in northern Wisconsin,
including projects for wastewater treatment and related
facilities, water supply and related facilities, environmental
restoration, and surface water resource protection and
development.
(d) Public Ownership Requirement.--The Secretary may
provide assistance for a project under this section only if the
project is publicly owned.
(e) Local Cooperation Agreement.--
(1) In general.--Before providing assistance under
this section, the Secretary shall enter into a local
cooperation agreement with a non-Federal interest to
provide for design and construction of the project to
be carried out with the assistance.
(2) Requirements.--Each local cooperation agreement
entered into under this subsection shall provide for
the following:
(A) Plan.--Development by the Secretary, in
consultation with appropriate Federal and State
officials, of a facilities or restructure
protection and development plan, including
appropriate engineering plans and
specifications.
(B) Legal and institutional structures.--
Establishment of such legal and institutional
structures as are necessary to ensure the
effective long-term operation of the project by
the non-Federal interest.
(3) Cost sharing.--
(A) In general.--The Federal share of
project costs under each local cooperation
agreement entered into under this subsection
shall be 75 percent. The Federal share may be
in the form of grants or reimbursements of
project costs.
(B) Credit for design work.--The non-
Federal interest shall receive credit for the
reasonable costs of design work completed by
the non-Federal interest before entering into a
local cooperation agreement with the Secretary
for a project. The credit for the design work
shall not exceed 6 percent of the local
construction costs of the project.
(C) Credit for interest.--In case of a
delay in the funding of the non-Federal share
of the costs of a project that is the subject
of an agreement under this subsection, the non-
Federal interest shall receive credit for
reasonable interest incurred in providing the
non-Federal share of the project's costs.
(D) Land, easements, and rights-of-way
credit.--The non-Federal interest shall receive
credit for land, easements, rights-of-way, and
reductions toward the non-Federal share of
project costs (including all reasonable costs
associated with obtaining permits necessary for
the construction, operation, and maintenance of
the project on publicly owned or controlled
land), but not to exceed 25 percent of the
total project costs.
(E) Operation and maintenance.--The non-
Federal share of operation and maintenance
costs for projects constructed with assistance
provided under this section shall be 100
percent.
(f) Applicability of Other Federal And State Laws.--Nothing
in this section waives, limits, or otherwise affects the
applicability of any provision of Federal or State law that
would otherwise apply to a project to be carried out with
assistance provided under this section.
(g) Report.--Not later than December 31, 2001, the
Secretary shall transmit to Congress a report on the results of
the pilot program carried out under this section, including
recommendations concerning whether the program should be
implemented on a national basis.
(h) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $40,000,000. Such
sums shall remain available until expended.
TITLE II--VIETNAM EDUCATION FOUNDATION ACT OF 2000
SECTION 201. SHORT TITLE.
This title may be cited as the ``Vietnam Education
Foundation Act of 2000''.
SEC. 202. PURPOSES.
The purposes of this title are the following:
(1) To establish an international fellowship
program under which--
(A) Vietnamese nationals can undertake
graduate and post-graduate level studies in the
sciences (natural, physical, and
environmental), mathematics, medicine, and
technology (including information technology);
and
(B) United States citizens can teach in the
fields specified in subparagraph (A) in
appropriate Vietnamese institutions.
(2) To further the process of reconciliation
between the United States and Vietnam and the building
of a bilateral relationship serving the interests of
both countries.
SEC. 203. DEFINITIONS.
In this title:
(1) Board.--The term ``Board'' means the Board of
Directors of the Foundation.
(2) Foundation.--The term ``Foundation'' means the
Vietnam Education Foundation established in section
204.
(3) Institution of higher education.--The term
``institution of higher education'' has the meaning
given the term in section 101(a) of the Higher
Education Act of 1965 (20 U.S.C. 1001(a)).
(4) United states-vietnam debt agreement.--The term
``United States-Vietnam debt agreement'' means the
Agreement Between the Government of the United States
of America and the Government of the Socialist Republic
of Vietnam Regarding the Consolidation and Rescheduling
of Certain Debts Owed to, Guaranteed by, or Insured by
the United States Government and the Agency for
International Development, dated April 7, 1997.
SEC. 204. ESTABLISHMENT.
There is established the Vietnam Education Foundation as an
independent establishment of the executive branch under section
104 of title 5, United States Code.
SEC. 205. BOARD OF DIRECTORS.
(a) In General.--The Foundation shall be subject to the
supervision and direction of the Board of Directors, which
shall consist of 13 members, as follows:
(1) Two members of the House of Representatives
appointed by the Speaker of the House of
Representatives, one of whom shall be appointed upon
the recommendation of the Majority Leader and one of
whom shall be appointed upon the recommendation of the
Minority Leader, and who shall serve as ex officio,
nonvoting members.
(2) Two members of the Senate, appointed by the
President pro tempore, one of whom shall be appointed
upon the recommendation of the Majority Leader and one
of whom shall be appointed upon the recommendation of
the Minority Leader, and who shall serve as ex officio,
nonvoting members.
(3) Secretary of State.
(4) Secretary of Education.
(5) Secretary of Treasury.
(6) Six members to be appointed by the President
from among individuals in the nongovernmental sector
who have academic excellence or experience in the
fields of concentration specified in section 202(1)(A)
or a general knowledge of Vietnam, not less than three
of whom shall be drawn from academic life.
(b) Rotation of Membership.--(1) The term of office of each
member appointed under subsection (a)(6) shall be 3 years,
except that of the members initially appointed under that
subsection, two shall serve for terms of one year, two shall
serve for terms of two years, and two shall serve for terms of
three years.
(2) A member of Congress appointed under subsection (a)(1)
or (2) shall not serve as a member of the Board for more than a
total of six years.
(c) Chair.--The Board shall elect one of the members
appointed under subsection (a)(6) to serve as Chair.
(d) Meetings.--The Board shall meet upon the call of the
Chair but not less frequently than twice each year. A majority
of the voting members of the Board shall constitute a quorum.
(e) Duties.--The Board shall--
(1) select the individuals who will be eligible to
serve as Fellows; and
(2) provide overall supervision and direction of
the Foundation.
(f) Compensation.--
(1) In general.--Except as provided in paragraph
(2), each member of the Board shall serve without
compensation, and members who are officers or employees
of the United States shall serve without compensation
in addition to that received for their services as
officers or employees of the United States.
(2) Travel expenses.--The members of the Board
shall be allowed travel expenses, including per diem in
lieu of subsistence, at rates authorized for employees
of agencies under subchapter I of chapter 57 of title
5, United States Code, while away from their homes or
regular places of business in the performance of
service for the Board.
SEC. 206. FELLOWSHIP PROGRAM.
(a) Award of Fellowships.--
(1) In general.--To carry out the purposes of this
title, the Foundation shall award fellowships to--
(A) Vietnamese nationals to study at
institutions of higher education in the United
States at graduate and post-graduate levels in
the following fields: physical sciences,
natural sciences, mathematics, environmental
sciences, medicine, technology, and computer
sciences; and
(B) United States citizens to teach in
Vietnam in appropriate Vietnamese institutions
in the fields of study described in
subparagraph (A).
(2) Special emphasis on scientific and technical
vocabulary in english.--Fellowships awarded under
paragraph (1) may include funding for the study of
scientific and technical vocabulary in English.
(b) Criteria for Selection.--Fellowships under this title
shall be awarded to persons who meet the minimum criteria
established by the Foundation, including the following:
(1) Vietnamese nationals.--Vietnamese candidates
for fellowships shall have basic English proficiency
and must have the ability to meet the criteria for
admission into graduate or post-graduate programs in
United States institutions of higher learning.
(2) United states citizen teachers.--American
teaching candidates shall be highly competent in their
fields and be experienced and proficient teachers.
(c) Implementation.--The Foundation may provide, directly
or by contract, for the conduct of nationwide competition for
the purpose of selecting recipients of fellowships awarded
under this section.
(d) Authority To Award Fellowships on a Matching Basis.--
The Foundation may require, as a condition of the availability
of funds for the award of a fellowship under this title, that
an institution of higher education make available funds for
such fellowship on a matching basis.
(e) Fellowship Conditions.--A person awarded a fellowship
under this title may receive payments authorized under this
title only during such periods as the Foundation finds that the
person is maintaining satisfactory proficiency and devoting
full time to study or teaching, as appropriate, and is not
engaging in gainful employment other than employment approved
by the Foundation pursuant to regulations of the Board.
(f) Funding.--
(1) Fiscal year 2001.--
(A) Authorization of appropriations.--There
are authorized to be appropriated to the
Foundation $5,000,000 for fiscal year 2001 to
carry out the activities of the Foundation.
(B) Availability of funds.--Amounts
appropriated pursuant to subparagraph (A) are
authorized to remain available until expended.
(2) Fiscal year 2002 and subsequent fiscal years.--
Effective October 1, 2001, the Foundation shall utilize
funds transferred to the Foundation under section 207.
SEC. 207. VIETNAM DEBT REPAYMENT FUND.
(a) Establishment.--Notwithstanding any other provision of
law, there is established in the Treasury a separate account
which shall be known as the Vietnam Debt Repayment Fund (in
this subsection referred to as the ``Fund'').
(b) Deposits.--There shall be deposited as offsetting
receipts into the Fund all payments (including interest
payments) made by the Socialist Republic of Vietnam under the
United States-Vietnam debt agreement.
(c) Availability of the Funds.--
(1) Fiscal year limitation.--Beginning with fiscal
year 2002, and each subsequent fiscal year through
fiscal year 2018, $5,000,000 of the amounts deposited
into the Fund (or accrued interest) each fiscal year
shall be available to the Foundation, without fiscal
year limitation, under paragraph (2).
(2) Disbursement of funds.--The Secretary of the
Treasury, at least on a quarterly basis, shall transfer
to the Foundation amounts allotted to the Foundation
under paragraph (1) for the purpose of carrying out its
activities.
(3) Transfer of excess funds to miscellaneous
receipts.--Beginning with fiscal year 2002, and each
subsequent fiscal year through fiscal year 2018, the
Secretary of the Treasury shall withdraw from the Fund
and deposit in the Treasury of the United States as
miscellaneous receipts all moneys in the Fund in excess
of amounts made available to the Foundation under
paragraph (1).
(d) Annual Report.--The Board shall prepare and submit
annually to Congress statements of financial condition of the
Fund, including the beginning balance, receipts, refunds to
appropriations, transfers to the general fund, and the ending
balance.
SEC. 208. FOUNDATION PERSONNEL MATTERS.
(a) Appointment by Board.--There shall be an Executive
Secretary of the Foundation who shall be appointed by the Board
without regard to the provisions of title 5, United States
Code, or any regulation thereunder, governing appointment in
the competitive service. The Executive Director shall be the
Chief Executive Officer of the Foundation and shall carry out
the functions of the Foundation subject to the supervision and
direction of the Board. The Executive Director shall carry out
such other functions consistent with the provisions of this
title as the Board shall prescribe. The decision to employ or
terminate an Executive Director shall be made by an affirmative
vote of at least 6 of the 9 voting members of the Board.
(b) Professional Staff.--The Executive Director shall hire
Foundation staff on the basis of professional and nonpartisan
qualifications.
(c) Experts and Consultants.--The Executive Director may
procure temporary and intermittent services of experts and
consultants as are necessary to the extent authorized by
section 3109 of title 5, United States Code to carry out the
purposes of the Foundation.
(d) Compensation.--The Board may fix the compensation of
the Executive Director and other personnel without regard to
the provisions of chapter 51 and subchapter III of chapter 53
of title V, United States Code, relating to classification of
positions and General Schedule pay rates, except that the rate
of pay for the Executive Director and other personnel may not
exceed the rate payable for level V of the Executive Schedule
under section 5316 of such title.
SEC. 209. ADMINISTRATIVE PROVISIONS.
(a) In General.--In order to carry out this title, the
Foundation may--
(1) prescribe such regulations as it considers
necessary governing the manner in which its functions
shall be carried out;
(2) receive money and other property donated,
bequeathed, or devised, without condition or
restriction other than it be used for the purposes of
the Foundation, and to use, sell, or otherwise dispose
of such property for the purpose of carrying out its
functions;
(3) accept and use the services of voluntary and
noncompensated personnel;
(4) enter into contracts or other arrangements, or
make grants, to carry out the provisions of this title,
and enter into such contracts or other arrangements, or
make such grants, with the concurrence of a majority of
the members of the Board, without performance or other
bonds and without regard to section 3709 of the Revised
Statutes (41 U.S.C. 5);
(5) rent office space in the District of Columbia;
and
(6) make other necessary expenditures.
(b) Annual Report.--The Foundation shall submit to the
President and to the Committee on Foreign Relations of the
Senate and the Committee on International Relations of the
House of Representatives an annual report of its operations
under this title.
SEC. 210. TERMINATION.
(a) In General.--The Foundation may not award any new
fellowship, or extend any existing fellowship, after September
30, 2016.
(b) Abolishment.--Effective 120 days after the expiration
of the last fellowship in effect under this title, the
Foundation is abolished.
TITLE III--COLORADO UTE SETTLEMENT ACT AMENDMENTS OF 2000
SECTION 301. SHORT TITLE; FINDINGS; DEFINITIONS.
(a) Short Title.--This title may be cited as the ``Colorado
Ute Settlement Act Amendments of 2000''.
(b) Findings.--Congress makes the following findings:
(1) In order to provide for a full and final
settlement of the claims of the Colorado Ute Indian
Tribes on the Animas and La Plata Rivers, the Tribes,
the State of Colorado, and certain of the non-Indian
parties to the Agreement have proposed certain
modifications to the Colorado Ute Indian Water Rights
Settlement Act of 1988 (Public Law 100-585; 102 Stat.
2973).
(2) The claims of the Colorado Ute Indian Tribes on
all rivers in Colorado other than the Animas and La
Plata Rivers have been settled in accordance with the
provisions of the Colorado Ute Indian Water Rights
Settlement Act of 1988 (Public Law 100-585; 102 Stat.
2973).
(3) The Indian and non-Indian communities of
southwest Colorado and northwest New Mexico will be
benefited by a settlement of the tribal claims on the
Animas and La Plata Rivers that provides the Tribes
with a firm water supply without taking water away from
existing uses.
(4) The Agreement contemplated a specific timetable
for the delivery of irrigation and municipal and
industrial water and other benefits to the Tribes from
the Animas-La Plata Project, which timetable has not
been met. The provision of irrigation water can not
presently be satisfied under the current implementation
of the Federal Water Pollution Control Act (33 U.S.C.
1251 et seq.) and the Endangered Species Act of 1973
(16 U.S.C. 1531 et seq.).
(5) In order to meet the requirements of the
Endangered Species Act of 1973 (16 U.S.C. 1531 et
seq.), and in particular the various biological
opinions issued by the Fish and Wildlife Service, the
amendments made by this title are needed to provide for
a significant reduction in the facilities and water
supply contemplated under the Agreement.
(6) The substitute benefits provided to the Tribes
under the amendments made by this title, including the
waiver of capital costs and the provisions of funds for
natural resource enhancement, result in a settlement
that provides the Tribes with benefits that are
equivalent to those that the Tribes would have received
under the Colorado Ute Indian Water Rights Settlement
Act of 1988 (Public Law 100-585; 102 Stat. 2973).
(7) The requirement that the Secretary of the
Interior comply with the National Environmental Policy
Act of 1969 (42 U.S.C. 4321 et seq.) and other national
environmental laws before implementing the proposed
settlement will ensure that the satisfaction of the
tribal water rights is accomplished in an
environmentally responsible fashion.
(8) In considering the full range of alternatives
for satisfying the water rights claims of the Southern
Ute Indian Tribe and Ute Mountain Ute Indian Tribe,
Congress has held numerous legislative hearings and
deliberations, and reviewed the considerable record
including the following documents:
(A) The Final EIS No. INT-FES-80-18, dated
July 1, 1980.
(B) The Draft Supplement to the FES No.
INT-DES-92-41, dated October 13, 1992.
(C) The Final Supplemental to the FES No.
96-23, dated April 26, 1996;
(D) The Draft Supplemental EIS, dated
January 14, 2000.
(E) The Final Supplemental EIS, dated July
2000.
(F) The Record of Decision for the
Settlement of the Colorado Ute Indian Waters,
September 25, 2000.
(9) In the Record of Decision referred to in
paragraph (8)(F), the Secretary determined that the
preferred alternative could only proceed if Congress
amended the Colorado Ute Indian Water Rights Settlement
Act of 1988 (Public Law 100-585; 102 Stat. 2973) so as
to satisfy the Tribal water rights claim through the
construction of the features authorized by this title.
The amendments to the Colorado Ute Indian Water Rights
Settlement Act of 1988 set forth in this title will
provide the Ute Tribes with substitute benefits
equivalent to those that the Tribes would have received
under the Colorado Ute Indian Water Rights Settlement
Act of 1988, in a manner consistent with paragraph (8)
and the Federal Government's trust obligation.
(10) Based upon paragraph (8), it is the intent of
Congress to enact legislation that implements the
Record of Decision referred to in paragraph (8)(F).
(c) Definitions.--In this title:
(1) Agreement.--The term ``Agreement'' has the
meaning given that term in section 3(1) of the Colorado
Ute Indian Water Rights Settlement Act of 1988 (Public
Law 100-585; 102 Stat. 2973).
(2) Animas-la plata project.--The term ``Animas-La
Plata Project'' has the meaning given that term in
section 3(2) of the Colorado Ute Indian Water Rights
Settlement Act of 1988 (Public Law 100-585; 102 Stat.
2973).
(3) Dolores project.--The term ``Dolores Project''
has the meaning given that term in section 3(3) of the
Colorado Ute Indian Water Rights Settlement Act of 1988
(Public Law 100-585; 102 Stat. 2974).
(4) Tribe; tribes.--The term ``Tribe'' or
``Tribes'' has the meaning given that term in section
3(6) of the Colorado Ute Indian Water Rights Settlement
Act of 1988 (Public Law 100-585; 102 Stat. 2974).
SEC. 302. AMENDMENTS TO SECTION 6 OF THE COLORADO UTE INDIAN WATER
RIGHTS SETTLEMENT ACT OF 1988.
Subsection (a) of section 6 of the Colorado Ute Indian
Water Rights Settlement Act of 1988 (Public Law 100-585; 102
Stat. 2975) is amended to read as follows:
``(a) Reservoir; Municipal and Industrial Water.--
``(1) Facilities.--
``(A) In general.--After the date of
enactment of this subsection, but prior to
January 1, 2005, or the date established in the
Amended Final Decree described in section
18(c), the Secretary, in order to settle the
outstanding claims of the Tribes on the Animas
and La Plata Rivers, acting through the Bureau
of Reclamation, is specifically authorized to--
``(i) complete construction of, and
operate and maintain, a reservoir, a
pumping plant, a reservoir inlet
conduit, and appurtenant facilities
with sufficient capacity to divert and
store water from the Animas River to
provide for an average annual depletion
of 57,100 acre-feet of water to be used
for a municipal and industrial water
supply, which facilities shall--
``(I) be designed and
operated in accordance with the
hydrologic regime necessary for
the recovery of the endangered
fish of the San Juan River as
determined by the San Juan
River Recovery Implementation
Program;
``(II) be operated in
accordance with the Animas-La
Plata Project Compact as
approved by Congress in Public
Law 90-537;
``(III) include an inactive
pool of an appropriate size to
be determined by the Secretary
following the completion of
required environmental
compliance activities; and
``(IV) include those
recreation facilities
determined to be appropriate by
agreement between the State of
Colorado and the Secretary that
shall address the payment of
any of the costs of such
facilities by the State of
Colorado in addition to the
costs described in paragraph
(3); and
``(ii) deliver, through the use of
the project components referred to in
clause (i), municipal and industrial
water allocations--
``(I) with an average
annual depletion not to exceed
16,525 acre-feet of water, to
the Southern Ute Indian Tribe
for its present and future
needs;
``(II) with an average
annual depletion not to exceed
16,525 acre-feet of water, to
the Ute Mountain Ute Indian
Tribe for its present and
future needs;
``(III) with an average
annual depletion not to exceed
2,340 acre-feet of water, to
the Navajo Nation for its
present and future needs;
``(IV) with an average
annual depletion not to exceed
10,400 acre-feet of water, to
the San Juan Water Commission
for its present and future
needs;
``(V) with an average
annual depletion of an amount
not to exceed 2,600 acre-feet
of water, to the Animas-La
Plata Conservancy District for
its present and future needs;
``(VI) with an average
annual depletion of an amount
not to exceed 5,230 acre-feet
of water, to the State of
Colorado for its present and
future needs; and
``(VII) with an average
annual depletion of an amount
not to exceed 780 acre-feet of
water, to the La Plata
Conservancy District of New
Mexico for its present and
future needs.
``(B) Applicability of other federal law.--
The responsibilities of the Secretary described
in subparagraph (A) are subject to the
requirements of Federal laws related to the
protection of the environment and otherwise
applicable to the construction of the proposed
facilities, including the National
Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.), the Clean Water Act (42 U.S.C.
7401 et seq.), and the Endangered Species Act
of 1973 (16 U.S.C. 1531 et seq.). Nothing in
this Act shall be construed to predetermine or
otherwise affect the outcome of any analysis
conducted by the Secretary or any other Federal
official under applicable laws.
``(C) Limitation.--
``(i) In general.--If constructed,
the facilities described in
subparagraph (A) shall constitute the
Animas-La Plata Project. Construction
of any other project features
authorized by Public Law 90-537 shall
not be commenced without further
express authorization from Congress.
``(ii) Contingency in
application.--If the facilities
described in subparagraph (A) are not
constructed and operated, clause (i)
shall not take effect.
``(2) Tribal construction costs.--Construction
costs allocable to the facilities that are required to
deliver the municipal and industrial water allocations
described in subclauses (I), (II) and (III) of
paragraph (1)(A)(ii) shall be nonreimbursable to the
United States.
``(3) Nontribal water capital obligations.--
``(A) In general.--Under the provisions of
section 9 of the Act of August 4, 1939 (43
U.S.C. 485h), the nontribal municipal and
industrial water capital repayment obligations
for the facilities described in paragraph
(1)(A)(i) may be satisfied upon the payment in
full of the nontribal water capital obligations
prior to the initiation of construction. The
amount of the obligations described in the
preceding sentence shall be determined by
agreement between the Secretary of the Interior
and the entity responsible for such repayment
as to the appropriate reimbursable share of the
construction costs allocated to that entity's
municipal water storage. Such repayment shall
be consistent with Federal reclamation law,
including the Colorado River Storage Project
Act of 1956 (43 U.S.C. 620 et seq.). Such
agreement shall take into account the fact that
the construction of certain project facilities,
including those facilities required to provide
irrigation water supplies from the Animas-La
Plata Project, is not authorized under
paragraph (1)(A)(i) and no costs associated
with the design or development of such
facilities, including costs associated with
environmental compliance, shall be allocable to
the municipal and industrial users of the
facilities authorized under such paragraph.
``(B) Nontribal repayment obligation
subject to final cost allocation.--The
nontribal repayment obligation set forth in
subparagraph (A) shall be subject to a final
cost allocation by the Secretary upon project
completion. In the event that the final cost
allocation indicates that additional repayment
is warranted based on the applicable entity's
share of project water storage and
determination of overall reimbursable cost,
that entity may elect to enter into a new
agreement to make the additional payment
necessary to secure the full water supply
identified in paragraph (1)(A)(ii). If the
repayment entity elects not to enter into a new
agreement, the portion of project storage
relinquished by such election shall be
available to the Secretary for allocation to
other project purposes. Additional repayment
shall only be warranted for reasonable and
unforeseen costs associated with project
construction as determined by the Secretary in
consultation with the relevant repayment
entities.
``(C) Report.--Not later than April 1,
2001, the Secretary shall report to Congress on
the status of the cost-share agreements
contemplated in subparagraph (A). In the event
that no agreement is reached with either the
Animas-La Plata Conservancy District or the
State of Colorado for the water allocations set
forth in subclauses (V) and (VI) of paragraph
(1)(A)(ii), those allocations shall be
reallocated equally to the Colorado Ute Tribes.
``(4) Tribal water allocations.--
``(A) In general.--With respect to
municipal and industrial water allocated to a
Tribe from the Animas-La Plata Project or the
Dolores Project, until that water is first used
by a Tribe or used pursuant to a water use
contract with the Tribe, the Secretary shall
pay the annual operation, maintenance, and
replacement costs allocable to that municipal
and industrial water allocation of the Tribe.
``(B) Treatment of costs.--A Tribe shall
not be required to reimburse the Secretary for
the payment of any cost referred to in
subparagraph (A).
``(5) Repayment of pro rata share.--Upon a Tribe's
first use of an increment of a municipal and industrial
water allocation described in paragraph (4), or the
Tribe's first use of such water pursuant to the terms
of a water use contract--
``(A) repayment of that increment's pro
rata share of those allocable construction
costs for the Dolores Project shall be made by
the Tribe; and
``(B) the Tribe shall bear a pro rata share
of the allocable annual operation, maintenance,
and replacement costs of the increment as
referred to in paragraph (4).''.
SEC. 303. MISCELLANEOUS.
The Colorado Ute Indian Water Rights Settlement Act of 1988
(Public Law 100-585; 102 Stat. 2973) is amended by adding at
the end the following:
``SEC. 15. NEW MEXICO AND NAVAJO NATION WATER
MATTERS.
``(a) Assignment of Water Permit.--Upon the request of the
State Engineer of the State of New Mexico, the Secretary shall,
as soon as practicable, in a manner consistent with applicable
law, assign, without consideration, to the New Mexico Animas-La
Plata Project beneficiaries or to the New Mexico Interstate
Stream Commission in accordance with the request of the State
Engineer, the Department of the Interior's interest in New
Mexico State Engineer Permit Number 2883, dated May 1, 1956, in
order to fulfill the New Mexico non-Navajo purposes of the
Animas-La Plata Project, so long as the permit assignment does
not affect the application of the Endangered Species Act of
1973 (16 U.S.C. 1531 et seq.) to the use of the water involved.
``(b) Navajo Nation Municipal Pipeline.--The Secretary is
specifically authorized to construct a water line to augment
the existing system that conveys the municipal water supplies,
in an amount not less than 4,680 acre-feet per year, to the
Navajo Indian Reservation at or near Shiprock, New Mexico. The
Secretary shall comply with all applicable environmental laws
with respect to such water line. Construction costs allocated
to the Navajo Nation for such water line shall be
nonreimbursable to the United States.
``(c) Protection of Navajo Water Claims.--Nothing in this
Act, including the permit assignment authorized by subsection
(a), shall be construed to quantify or otherwise adversely
affect the water rights and the claims of entitlement to water
of the Navajo Nation.
``SEC. 16. RESOURCE FUNDS.
``(a) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section, $8,000,000 for
each of fiscal years 2002 through 2006. Not later than 60 days
after amounts are appropriated and available to the Secretary
for a fiscal year under this paragraph, the Secretary shall
make a payment to each of the Tribal Resource Funds established
under subsection (b). Each such payment shall be equal to 50
percent of the amount appropriated for the fiscal year
involved.
``(b) Funds.--The Secretary shall establish a--
``(1) Southern Ute Tribal Resource Fund; and
``(2) Ute Mountain Ute Tribal Resource Fund.
``(c) Tribal Development.--
``(1) Investment.--The Secretary shall, in the
absence of an approved tribal investment plan provided
for under paragraph (2), invest the amount in each
Tribal Resource Fund established under subsection (b)
in accordance with the Act entitled, `An Act to
authorize the deposit and investment of Indian funds'
approved June 24, 1938 (25 U.S.C. 162a). With the
exception of the funds referred to in paragraph
(3)(B)(i), the Secretary shall disburse, at the request
of a Tribe, the principal and income in its Resource
Fund, or any part thereof, in accordance with a
resource acquisition and enhancement plan approved
under paragraph (3).
``(2) Investment plan.--
``(A) In general.--In lieu of the
investment provided for in paragraph (1), a
Tribe may submit a tribal investment plan
applicable to all or part of the Tribe's Tribal
Resource Fund, except with respect to the funds
referred to in paragraph (3)(B)(i).
``(B) Approval.--Not later than 60 days
after the date on which an investment plan is
submitted under subparagraph (A), the Secretary
shall approve such investment plan if the
Secretary finds that the plan is reasonable and
sound. If the Secretary does not approve such
investment plan, the Secretary shall set forth
in writing and with particularity the reasons
for such disapproval. If such investment plan
is approved by the Secretary, the Tribal
Resource Fund involved shall be disbursed to
the Tribe to be invested by the Tribe in
accordance with the approved investment plan,
subject to subsection (d).
``(C) Compliance.--The Secretary may take
such steps as the Secretary determines to be
necessary to monitor the compliance of a Tribe
with an investment plan approved under
subparagraph (B). The United States shall not
be responsible for the review, approval, or
audit of any individual investment under the
plan. The United States shall not be directly
or indirectly liable with respect to any such
investment, including any act or omission of
the Tribe in managing or investing such funds.
``(D) Economic development plan.--The
principal and income derived from tribal
investments under an investment plan approved
under subparagraph (B) shall be subject to the
provisions of this section and shall be
expended only in accordance with an economic
development plan approved under paragraph
(3)(B).
``(3) Economic development plan.--
``(A) In general.--Each Tribe shall submit
to the Secretary a resource acquisition and
enhancement plan for all or any portion of its
Tribal Resource Fund.
``(B) Approval.--Not later than 60 days
after the date on which a plan is submitted
under subparagraph (A), the Secretary shall
approve such plan if it is consistent with the
following requirements:
``(i) With respect to at least \3/
4\ of the funds appropriated pursuant
to this section and consistent with the
long-standing practice of the Tribes
and other local entities and
communities to work together to use
their respective water rights and
resources for mutual benefit, at least
\3/4\ of the funds appropriated
pursuant to this section shall be
utilized to enhance, restore, and
utilize the Tribes' natural resources
in partnership with adjacent non-Indian
communities or entities in the area.
``(ii) The plan must be reasonably
related to the protection, acquisition,
enhancement, or development of natural
resources for the benefit of the Tribe
and its members.
``(iii) Notwithstanding any other
provision of law and in order to ensure
that the Federal Government fulfills
the objectives of the Record of
Decision referred to in section
301(b)(8)(F) of the Colorado Ute
Settlement Act Amendments of 2000 by
requiring that the funds referred to in
clause (i) are expended directly by
employees of the Federal Government,
the Secretary acting through the Bureau
of Reclamation shall expend not less
than \1/3\ of the funds referred to in
clause (i) for municipal or rural water
development and not less than \2/3\ of
the funds referred to such clause for
resource acquisition and enhancement.
``(C) Modification.--Subject to the
provisions of this Act and the approval of the
Secretary, each Tribe may modify a plan
approved under subparagraph (B).
``(D) Liability.--The United States shall
not be directly or indirectly liable for any
claim or cause of action arising from the
approval of a plan under this paragraph, or
from the use and expenditure by the Tribe of
the principal or interest of the Funds.
``(d) Limitation on Per Capita Distributions.--No part of
the principal contained in the Tribal Resource Fund, or of the
income accruing to such funds, or the revenue from any water
use contract, shall be distributed to any member of either
Tribe on a per capita basis.
``(e) Limitation on Setting Aside Final Consent Decree.--
Neither the Tribes nor the United States shall have the right
to set aside the final consent decree solely because the
requirements of subsection (c) are not complied with or
implemented.
``(f) Limitation on Disbursement of Tribal Resource
Funds.--Any funds appropriated under this section shall be
placed into the Southern Ute Tribal Resource Fund and the Ute
Mountain Ute Tribal Resource Fund in the Treasury of the United
States but shall not be available for disbursement under this
section until the final settlement of the tribal claims as
provided in section 18. The Secretary of the Interior may, in
the Secretary's sole discretion, authorize the disbursement of
funds prior to the final settlement in the event that the
Secretary determines that substantial portions of the
settlement have been completed. In the event that the funds are
not disbursed under the terms of this section by December 31,
2012, such funds shall be deposited in the general fund of the
Treasury.
``SEC. 17. COLORADO UTE SETTLEMENT FUND.
``(a) Establishment of Fund.--There is hereby established
within the Treasury of the United States a fund to be known as
the `Colorado Ute Settlement Fund'.
``(b) Authorization of Appropriations.--There is authorized
to be appropriated to the Colorado Ute Settlement Fund such
funds as are necessary to complete the construction of the
facilities described in sections 6(a)(1)(A) and 15(b) within 7
years of the date of enactment of this section. Such funds are
authorized to be appropriated for each of the first 5 fiscal
years beginning with the first full fiscal year following the
date of enactment of this section.
``SEC. 18. FINAL SETTLEMENT.
``(a) In General.--The construction of the facilities
described in section 6(a)(1)(A), the allocation of the water
supply from those facilities to the Tribes as described in that
section, and the provision of funds to the Tribes in accordance
with section 16 and the issuance of an amended final consent
decree as contemplated in subsection (c) shall constitute final
settlement of the tribal claims to water rights on the Animas
and La Plata Rivers in the State of Colorado.
``(b) Statutory Construction.--Nothing in this section
shall be construed to affect the right of the Tribes to water
rights on the streams and rivers described in the Agreement,
other than the Animas and La Plata Rivers, to receive the
amounts of water dedicated to tribal use under the Agreement,
or to acquire water rights under the laws of the State of
Colorado.
``(c) Action by the Attorney General.--The Attorney General
shall file with the District Court, Water Division Number 7, of
the State of Colorado, such instruments as may be necessary to
request the court to amend the final consent decree to provide
for the amendments made to this Act under the Colorado Ute
Indian Water Rights Settlement Act Amendments of 2000. The
amended final consent decree shall specify terms and conditions
to provide for an extension of the current January 1, 2005,
deadline for the Tribes to commence litigation of their
reserved rights claims on the Animas and La Plata Rivers.
``SEC. 19. STATUTORY CONSTRUCTION; TREATMENT OF CERTAIN FUNDS.
``(a) In General.--Nothing in the amendments made by the
Colorado Ute Settlement Act Amendments of 2000 shall be
construed to affect the applicability of any provision of this
Act.
``(b) Treatment of Uncommitted Portion of Cost-Sharing
Obligation.--The uncommitted portion of the cost-sharing
obligation of the State of Colorado referred to in section
6(a)(3) shall be made available, upon the request of the State
of Colorado, to the State of Colorado after the date on which
payment is made of the amount specified in that section.''.
TITLE IV
SECTION 401. DESIGNATION OF AMERICAN MUSEUM OF SCIENCE AND ENERGY.
(a) In General.--The Museum--
(1) is designated as the ``American Museum of
Science and Energy''; and
(2) shall be the official museum of science and
energy of the United States.
(b) References.--Any reference in a law, map, regulation,
document, paper, or other record of the United States to the
Museum is deemed to be a reference to the ``American Museum of
Science and Energy''.
(c) Property of the United States.--
(1) In general.--The name ``American Museum of
Science and Energy'' is declared the property of the
United States.
(2) Use.--The Museum shall have the sole right
throughout the United States and its possessions to
have and use the name ``American Museum of Science and
Energy''.
(3) Effect on other rights.--This subsection shall
not be construed to conflict or interfere with
established or vested rights.
SEC. 402. AUTHORITY.
To carry out the activities of the Museum, the Secretary
may--
(1) accept and dispose of any gift, devise, or
bequest of services or property, real or personal, that
is--
(A) designated in a written document by the
person making the gift, devise, or bequest as
intended for the Museum; and
(B) determined by the Secretary to be
suitable and beneficial for use by the Museum;
(2) operate a retail outlet on the premises of the
Museum for the purpose of selling or distributing items
(including mementos, food, educational materials,
replicas, and literature) that are--
(A) relevant to the contents of the Museum;
and
(B) informative, educational, and tasteful;
(3) collect reasonable fees where feasible and
appropriate;
(4) exhibit, perform, display, and publish
materials and information of or relating to the Museum
in any media or place;
(5) consistent with guidelines approved by the
Secretary, lease space on the premises of the Museum at
reasonable rates and for uses consistent with such
guidelines; and
(6) use the proceeds of activities authorized under
this section to pay the costs of the Museum.
SEC. 403. MUSEUM VOLUNTEERS.
(a) Authority To Use Volunteers.--The Secretary may
recruit, train, and accept the services of individuals or
entities as volunteers for services or activities related to
the Museum.
(b) Status of Volunteers.--
(1) In general.--Except as provided in paragraph
(2), service by a volunteer under subsection (a) shall
not be considered Federal employment.
(2) Exceptions.--
(A) Federal tort claims act.--For purposes
of chapter 171 of title 28, United States Code,
a volunteer under subsection (a) shall be
treated as an employee of the Government (as
defined in section 2671 of that title).
(B) Compensation for work injuries.--For
purposes of subchapter I of chapter 81 of title
5, United States Code, a volunteer described in
subsection (a) shall be treated as an employee
(as defined in section 8101 of title 5, United
States Code).
(c) Compensation.--A volunteer under subsection (a) shall
serve without pay, but may receive nominal awards and
reimbursement for incidental expenses, including expenses for a
uniform or transportation in furtherance of Museum activities.
SEC. 404. DEFINITIONS.
For purposes of this Act:
(1) Museum.--The term ``Museum'' means the museum
operated by the Secretary of Energy and located at 300
South Tulane Avenue in Oak Ridge, Tennessee.
(2) Secretary.--The term ``Secretary'' means the
Secretary of Energy or a designated representative of
the Secretary.
TITLE V--LOWER MISSISSIPPI RIVER REGION
SEC. 501. SHORT TITLE.
This title may be cited as the ``Delta Regional Authority
Act of 2000''.
SEC. 502. FINDINGS AND PURPOSES.
(a) Findings.--Congress finds that--
(1) the lower Mississippi River region (referred to
in this title as the ``region''), though rich in
natural and human resources, lags behind the rest of
the United States in economic growth and prosperity;
(2) the region suffers from a greater proportion of
measurable poverty and unemployment than any other
region of the United States;
(3) the greatest hope for economic growth and
revitalization in the region lies in the development of
transportation infrastructure, creation of jobs,
expansion of businesses, and development of
entrepreneurial local economies;
(4) the economic progress of the region requires an
adequate transportation and physical infrastructure, a
skilled and trained workforce, and greater
opportunities for enterprise development and
entrepreneurship;
(5) a concerted and coordinated effort among
Federal, State, and local agencies, the private sector,
and nonprofit groups is needed if the region is to
achieve its full potential for economic development;
(6) economic development planning on a regional or
multicounty basis offers the best prospect for
achieving the maximum benefit from public and private
investments; and
(7) improving the economy of the region requires a
special emphasis on areas of the region that are most
economically distressed.
(b) Purposes.--The purposes of this title are--
(1) to promote and encourage the economic
development of the region--
(A) to ensure that the communities and
people in the region have the opportunity for
economic development; and
(B) to ensure that the economy of the
region reaches economic parity with that of the
rest of the United States;
(2) to establish a formal framework for joint
Federal-State collaboration in meeting and focusing
national attention on the economic development needs of
the region;
(3) to assist the region in obtaining the
transportation and basic infrastructure, skills
training, and opportunities for economic development
that are essential for strong local economies;
(4) to foster coordination among all levels of
government, the private sector, and nonprofit groups in
crafting common regional strategies that will lead to
broader economic growth;
(5) to strengthen efforts that emphasize regional
approaches to economic development and planning;
(6) to encourage the participation of interested
citizens, public officials, agencies, and others in
developing and implementing local and regional plans
for broad-based economic and community development; and
(7) to focus special attention on areas of the
region that suffer from the greatest economic distress.
SEC. 503. DELTA REGIONAL AUTHORITY.
The Consolidated Farm and Rural Development Act (7 U.S.C.
1921 et seq.) is amended by adding at the end the following:
``Subtitle F--Delta Regional Authority
``SEC. 382A. DEFINITIONS.
``In this subtitle:
``(1) Authority.--The term `Authority' means the
Delta Regional Authority established by section 382B.
``(2) Region.--The term `region' means the Lower
Mississippi (as defined in section 4 of the Delta
Development Act (42 U.S.C. 3121 note; Public Law 100-
460)).
``(3) Federal grant program.--The term `Federal
grant program' means a Federal grant program to provide
assistance in--
``(A) acquiring or developing land;
``(B) constructing or equipping a highway,
road, bridge, or facility; or
``(C) carrying out other economic
development activities.
``SEC. 382B. DELTA REGIONAL AUTHORITY.
``(a) Establishment.--
``(1) In general.--There is established the Delta
Regional Authority.
``(2) Composition.--The Authority shall be composed
of--
``(A) a Federal member, to be appointed by
the President, with the advice and consent of
the Senate; and
``(B) the Governor (or a designee of the
Governor) of each State in the region that
elects to participate in the Authority.
``(3) Cochairpersons.--The Authority shall be
headed by--
``(A) the Federal member, who shall serve--
``(i) as the Federal cochairperson;
and
``(ii) as a liaison between the
Federal Government and the Authority;
and
``(B) a State cochairperson, who--
``(i) shall be a Governor of a
participating State in the region; and
``(ii) shall be elected by the
State members for a term of not less
than 1 year.
``(b) Alternate Members.--
``(1) State alternates.--The State member of a
participating State may have a single alternate, who
shall be--
``(A) a resident of that State; and
``(B) appointed by the Governor of the
State.
``(2) Alternate federal cochairperson.--The
President shall appoint an alternate Federal
cochairperson.
``(3) Quorum.--A State alternate shall not be
counted toward the establishment of a quorum of the
Authority in any instance in which a quorum of the
State members is required to be present.
``(4) Delegation of power.--No power or
responsibility of the Authority specified in paragraphs
(2) and (3) of subsection (c), and no voting right of
any Authority member, shall be delegated to any
person--
``(A) who is not a Authority member; or
``(B) who is not entitled to vote in
Authority meetings.
``(c) Voting.--
``(1) In general.--A decision by the Authority
shall require a majority vote of the Authority (not
including any member representing a State that is
delinquent under subsection (g)(2)(C)) to be effective.
``(2) Quorum.--A quorum of State members shall be
required to be present for the Authority to make any
policy decision, including--
``(A) a modification or revision of a
Authority policy decision;
``(B) approval of a State or regional
development plan; and
``(C) any allocation of funds among the
States.
``(3) Project and grant proposals.--The approval of
project and grant proposals shall be--
``(A) a responsibility of the Authority;
and
``(B) conducted in accordance with section
382I.
``(4) Voting by alternate members.--An alternate
member shall vote in the case of the absence, death,
disability, removal, or resignation of the Federal or
State representative for which the alternate member is
an alternate.
``(d) Duties.--The Authority shall--
``(1) develop, on a continuing basis, comprehensive
and coordinated plans and programs to establish
priorities and approve grants for the economic
development of the region, giving due consideration to
other Federal, State, and local planning and
development activities in the region;
``(2) not later than 220 days after the date of
enactment of this subtitle, establish priorities in a
development plan for the region (including 5-year
regional outcome targets);
``(3) assess the needs and assets of the region
based on available research, demonstrations,
investigations, assessments, and evaluations of the
region prepared by Federal, State, and local agencies,
universities, local development districts, and other
nonprofit groups;
``(4) formulate and recommend to the Governors and
legislatures of States that participate in the
Authority forms of interstate cooperation;
``(5) work with State and local agencies in
developing appropriate model legislation;
``(6)(A) enhance the capacity of, and provide
support for, local development districts in the region;
or
``(B) if no local development district exists in an
area in a participating State in the region, foster the
creation of a local development district;
``(7) encourage private investment in industrial,
commercial, and other economic development projects in
the region; and
``(8) cooperate with and assist State governments
with economic development programs of participating
States.
``(e) Administration.--In carrying out subsection (d), the
Authority may--
``(1) hold such hearings, sit and act at such times
and places, take such testimony, receive such evidence,
and print or otherwise reproduce and distribute a
description of the proceedings and reports on actions
by the Authority as the Authority considers
appropriate;
``(2) authorize, through the Federal or State co-
chairperson or any other member of the Authority
designated by the Authority, the administration of
oaths if the Authority determines that testimony should
be taken or evidence received under oath; and
``(3) request from any Federal, State, or local
department or agency such information as may be
available to or procurable by the department or agency
that may be of use to the Authority in carrying out
duties of the Authority;
``(4) adopt, amend, and repeal bylaws and rules
governing the conduct of Authority business and the
performance of Authority duties;
``(5) request the head of any Federal department or
agency to detail to the Authority such personnel as the
Authority requires to carry out duties of the
Authority, each such detail to be without loss of
seniority, pay, or other employee status;
``(6) request the head of any State department or
agency or local government to detail to the Authority
such personnel as the Authority requires to carry out
duties of the Authority, each such detail to be without
loss of seniority, pay, or other employee status;
``(7) provide for coverage of Authority employees
in a suitable retirement and employee benefit system
by--
``(A) making arrangements or entering into
contracts with any participating State
government; or
``(B) otherwise providing retirement and
other employee benefit coverage;
``(8) accept, use, and dispose of gifts or
donations of services or real, personal, tangible, or
intangible property;
``(9) enter into and perform such contracts,
leases, cooperative agreements, or other transactions
as are necessary to carry out Authority duties,
including any contracts, leases, or cooperative
agreements with--
``(A) any department, agency, or
instrumentality of the United States;
``(B) any State (including a political
subdivision, agency, or instrumentality of the
State); or
``(C) any person, firm, association, or
corporation; and
``(10) establish and maintain a central office and
field offices at such locations as the Authority may
select.
``(f) Federal Agency Cooperation.--A Federal agency shall--
``(1) cooperate with the Authority; and
``(2) provide, on request of the Federal
cochairperson, appropriate assistance in carrying out
this subtitle, in accordance with applicable Federal
laws (including regulations).
``(g) Administrative Expenses.--
``(1) In general.--Administrative expenses of the
Authority (except for the expenses of the Federal
cochairperson, including expenses of the alternate and
staff of the Federal cochairperson, which shall be paid
solely by the Federal Government) shall be paid--
``(A) by the Federal Government, in an
amount equal to 50 percent of the
administrative expenses; and
``(B) by the States in the region
participating in the Authority, in an amount
equal to 50 percent of the administrative
expenses.
``(2) State share.--
``(A) In general.--The share of
administrative expenses of the Authority to be
paid by each State shall be determined by the
Authority.
``(B) No federal participation.--The
Federal cochairperson shall not participate or
vote in any decision under subparagraph (A).
``(C) Delinquent states.--If a State is
delinquent in payment of the State's share of
administrative expenses of the Authority under
this subsection--
``(i) no assistance under this
subtitle shall be furnished to the
State (including assistance to a
political subdivision or a resident of
the State); and
``(ii) no member of the Authority
from the State shall participate or
vote in any action by the Authority.
``(h) Compensation.--
``(1) Federal cochairperson.--The Federal
cochairperson shall be compensated by the Federal
Government at level III of the Executive Schedule in
subchapter II of chapter 53 of title V, United States
Code.
``(2) Alternate federal cochairperson.--The
alternate Federal cochairperson--
``(A) shall be compensated by the Federal
Government at level V of the Executive Schedule
described in paragraph (1); and
``(B) when not actively serving as an
alternate for the Federal cochairperson, shall
perform such functions and duties as are
delegated by the Federal cochairperson.
``(3) State members and alternates.--
``(A) In general.--A State shall compensate
each member and alternate representing the
State on the Authority at the rate established
by law of the State.
``(B) No additional compensation.--No State
member or alternate member shall receive any
salary, or any contribution to or
supplementation of salary from any source other
than the State for services provided by the
member or alternate to the Authority.
``(4) Detailed employees.--
``(A) In general.--No person detailed to
serve the Authority under subsection (e)(6)
shall receive any salary or any contribution to
or supplementation of salary for services
provided to the Authority from--
``(i) any source other than the
State, local, or intergovernmental
department or agency from which the
person was detailed; or
``(ii) the Authority.
``(B) Violation.--Any person that violates
this paragraph shall be fined not more than
$5,000, imprisoned not more than 1 year, or
both.
``(C) Applicable law.--The Federal
cochairperson, the alternate Federal
cochairperson, and any Federal officer or
employee detailed to duty on the Authority
under subsection (e)(5) shall not be subject to
subparagraph (A), but shall remain subject to
sections 202 through 209 of title 18, United
States Code.
``(5) Additional personnel.--
``(A) Compensation.--
``(i) In general.--The Authority
may appoint and fix the compensation of
an executive director and such other
personnel as are necessary to enable
the Authority to carry out the duties
of the Authority.
``(ii) Exception.--Compensation
under clause (i) shall not exceed the
maximum rate for the Senior Executive
Service under section 5382 of title 5,
United States Code, including any
applicable locality-based comparability
payment that may be authorized under
section 5304(h)(2)(C) of that title.
``(B) Executive director.--The executive
director shall be responsible for--
``(i) the carrying out of the
administrative duties of the Authority;
``(ii) direction of the Authority
staff; and
``(iii) such other duties as the
Authority may assign.
``(C) No federal employee status.--No
member, alternate, officer, or employee of the
Authority (except the Federal cochairperson of
the Authority, the alternate and staff for the
Federal cochairperson, and any Federal employee
detailed to the Authority under subsection
(e)(5)) shall be considered to be a Federal
employee for any purpose.
``(i) Conflicts of Interest.--
``(1) In general.--Except as provided under
paragraph (2), no State member, alternate, officer, or
employee of the Authority shall participate personally
and substantially as a member, alternate, officer, or
employee of the Authority, through decision, approval,
disapproval, recommendation, the rendering of advice,
investigation, or otherwise, in any proceeding,
application, request for a ruling or other
determination, contract, claim, controversy, or other
matter in which, to knowledge of the member, alternate,
officer, or employee--
``(A) the member, alternate, officer, or
employee;
``(B) the spouse, minor child, partner, or
organization (other than a State or political
subdivision of the State) of the member,
alternate, officer, or employee, in which the
member, alternate, officer, or employee is
serving as officer, director, trustee, partner,
or employee; or
``(C) any person or organization with whom
the member, alternate, officer, or employee is
negotiating or has any arrangement concerning
prospective employment;
has a financial interest.
``(2) Disclosure.--Paragraph (1) shall not apply if
the State member, alternate, officer, or employee--
``(A) immediately advises the Authority of
the nature and circumstances of the proceeding,
application, request for a ruling or other
determination, contract, claim, controversy, or
other particular matter presenting a potential
conflict of interest;
``(B) makes full disclosure of the
financial interest; and
``(C) before the proceeding concerning the
matter presenting the conflict of interest,
receives a written determination by the
Authority that the interest is not so
substantial as to be likely to affect the
integrity of the services that the Authority
may expect from the State member, alternate,
officer, or employee.
``(3) Violation.--Any person that violates this
subsection shall be fined not more than $10,000,
imprisoned not more than 2 years, or both.
``(j) Validity of Contracts, Loans, and Grants.--The
Authority may declare void any contract, loan, or grant of or
by the Authority in relation to which the Authority determines
that there has been a violation of any provision under
subsection (h)(4), subsection (i), or sections 202 through 209
of title 18, United States Code.
``SEC. 382C. ECONOMIC AND COMMUNITY DEVELOPMENT GRANTS.
``(a) In General.--The Authority may approve grants to
States and public and nonprofit entities for projects, approved
in accordance with section 382I--
``(1) to develop the transportation infrastructure
of the region for the purpose of facilitating economic
development in the region (except that grants for this
purpose may only be made to a State or local
government);
``(2) to assist the region in obtaining the job
training, employment-related education, and business
development (with an emphasis on entrepreneurship) that
are needed to build and maintain strong local
economies;
``(3) to provide assistance to severely distressed
and underdeveloped areas that lack financial resources
for improving basic public services;
``(4) to provide assistance to severely distressed
and underdeveloped areas that lack financial resources
for equipping industrial parks and related facilities;
and
``(5) to otherwise achieve the purposes of this
subtitle.
``(b) Funding.--
``(1) In general.--Funds for grants under
subsection (a) may be provided--
``(A) entirely from appropriations to carry
out this section;
``(B) in combination with funds available
under another Federal or Federal grant program;
or
``(C) from any other source.
``(2) Priority of funding.--To best build the
foundations for long-term economic development and to
complement other Federal and State resources in the
region, Federal funds available under this subtitle
shall be focused on the activities in the following
order or priority:
``(A) Basic public infrastructure in
distressed counties and isolated areas of
distress.
``(B) Transportation infrastructure for the
purpose of facilitating economic development in
the region.
``(C) Business development, with emphasis
on entrepreneurship.
``(D) Job training or employment-related
education, with emphasis on use of existing
public educational institutions located in the
region.
``(3) Federal share in grant programs.--
Notwithstanding any provision of law limiting the
Federal share in any grant program, funds appropriated
to carry out this section may be used to increase a
Federal share in a grant program, as the Authority
determines appropriate.
``SEC. 382D. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.
``(a) Finding.--Congress finds that certain States and
local communities of the region, including local development
districts, may be unable to take maximum advantage of Federal
grant programs for which the States and communities are
eligible because--
``(1) they lack the economic resources to meet the
required matching share; or
``(2) there are insufficient funds available under
the applicable Federal grant law authorizing the
program to meet pressing needs of the region.
``(b) Federal Grant Program Funding.--In accordance with
subsection (c), the Federal cochairperson may use amounts made
available to carry out this subtitle, without regard to any
limitations on areas eligible for assistance or authorizations
for appropriation under any other Act, to fund all or any
portion of the basic Federal contribution to a project or
activity under a Federal grant program in the region in an
amount that is above the fixed maximum portion of the cost of
the project otherwise authorized by applicable law, but not to
exceed 90 percent of the costs of the project (except as
provided in section 382F(b)).
``(c) Certification.--
``(1) In general.--In the case of any program or
project for which all or any portion of the basic
Federal contribution to the project under a Federal
grant program is proposed to be made under this
section, no Federal contribution shall be made until
the Federal official administering the Federal law
authorizing the contribution certifies that the program
or project--
``(A) meets the applicable requirements of
the applicable Federal grant law; and
``(B) could be approved for Federal
contribution under the law if funds were
available under the law for the program or
project.
``(2) Certification by authority.--
``(A) In general.--The certifications and
determinations required to be made by the
Authority for approval of projects under this
subtitle in accordance with section 382I--
``(i) shall be controlling; and
``(ii) shall be accepted by the
Federal agencies.
``(B) Acceptance by federal
cochairperson.--Any finding, report,
certification, or documentation required to be
submitted to the head of the department,
agency, or instrumentality of the Federal
Government responsible for the administration
of any Federal grant program shall be accepted
by the Federal cochairperson with respect to a
supplemental grant for any project under the
program.
``SEC. 382E. LOCAL DEVELOPMENT DISTRICTS; CERTIFICATION AND
ADMINISTRATIVE EXPENSES.
``(a) Definition of Local Development District.--In this
section, the term `local development district' means an entity
that--
``(1) is--
``(A) a planning district in existence on
the date of enactment of this subtitle that is
recognized by the Economic Development
Administration of the Department of Commerce;
or
``(B) where an entity described in
subparagraph (A) does not exist--
``(i) organized and operated in a
manner that ensures broad-based
community participation and an
effective opportunity for other
nonprofit groups to contribute to the
development and implementation of
programs in the region;
``(ii) governed by a policy board
with at least a simple majority of
members consisting of elected officials
or employees of a general purpose unit
of local government who have been
appointed to represent the government;
``(iii) certified to the Authority
as having a charter or authority that
includes the economic development of
counties or parts of counties or other
political subdivisions within the
region--
``(I) by the Governor of
each State in which the entity
is located; or
``(II) by the State officer
designated by the appropriate
State law to make the
certification; and
``(iv)(I) a nonprofit incorporated body
organized or chartered under the law of the
State in which the entity is located;
``(II) a nonprofit agency or
instrumentality of a State or local government;
``(III) a public organization established
before the date of enactment of this subtitle
under State law for creation of multi-
jurisdictional, area-wide planning
organizations; or
``(IV) a nonprofit association or
combination of bodies, agencies, and
instrumentalities described in subclauses (I)
through (III); and
``(2) has not, as certified by the Federal
cochairperson--
``(A) inappropriately used Federal grant
funds from any Federal source; or
``(B) appointed an officer who, during the
period in which another entity inappropriately
used Federal grant funds from any Federal
source, was an officer of the other entity.
``(b) Grants to Local Development Districts.--
``(1) In general.--The Authority may make grants
for administrative expenses under this section.
``(2) Conditions for grants.--
``(A) Maximum amount.--The amount of any
grant awarded under paragraph (1) shall not
exceed 80 percent of the administrative
expenses of the local development district
receiving the grant.
``(B) Maximum period.--No grant described
in paragraph (1) shall be awarded to a State
agency certified as a local development
district for a period greater than 3 years.
``(C) Local share.--The contributions of a
local development district for administrative
expenses may be in cash or in kind, fairly
evaluated, including space, equipment, and
services.
``(c) Duties of Local Development Districts.--A local
development district shall--
``(1) operate as a lead organization serving
multicounty areas in the region at the local level; and
``(2) serve as a liaison between State and local
governments, nonprofit organizations (including
community-based groups and educational institutions),
the business community, and citizens that--
``(A) are involved in multijurisdictional
planning;
``(B) provide technical assistance to local
jurisdictions and potential grantees; and
``(C) provide leadership and civic
development assistance.
``SEC. 382F. DISTRESSED COUNTIES AND AREAS AND NONDISTRESSED COUNTIES.
``(a) Designations.--Not later than 90 days after the date
of enactment of this subtitle, and annually thereafter, the
Authority, in accordance with such criteria as the Authority
may establish, shall designate--
``(1) as distressed counties, counties in the
region that are the most severely and persistently
distressed and underdeveloped and have high rates of
poverty or unemployment;
``(2) as nondistressed counties, counties in the
region that are not designated as distressed counties
under paragraph (1); and
``(3) as isolated areas of distress, areas located
in nondistressed counties (as designated under
paragraph (2)) that have high rates of poverty or
unemployment.
``(b) Distressed Counties.--
``(1) In general.--The Authority shall allocate at
least 75 percent of the appropriations made available
under section 382M for programs and projects designed
to serve the needs of distressed counties and isolated
areas of distress in the region.
``(2) Funding limitations.--The funding limitations
under section 382D(b) shall not apply to a project
providing transportation or basic public services to
residents of 1 or more distressed counties or isolated
areas of distress in the region.
``(c) Nondistressed Counties.--
``(1) In general.--Except as provided in this
subsection, no funds shall be provided under this
subtitle for a project located in a county designated
as a nondistressed county under subsection (a)(2).
``(2) Exceptions.--
``(A) In general.--The funding prohibition
under paragraph (1) shall not apply to grants
to fund the administrative expenses of local
development districts under section 382E(b).
``(B) Multicounty projects.--The Authority
may waive the application of the funding
prohibition under paragraph (1) to--
``(i) a multicounty project that
includes participation by a
nondistressed county; or
``(ii) any other type of project;
if the Authority determines that the project
could bring significant benefits to areas of
the region outside a nondistressed county.
``(C) Isolated areas of distress.--For a
designation of an isolated area of distress for
assistance to be effective, the designation
shall be supported--
``(i) by the most recent Federal
data available; or
``(ii) if no recent Federal data
are available, by the most recent data
available through the government of the
State in which the isolated area of
distress is located.
``(d) Transportation and Basic Public Infrastructure.--The
Authority shall allocate at least 50 percent of any funds made
available under section 382M for transportation and basic
public infrastructure projects authorized under paragraphs (1)
and (3) of section 382C(a).
``SEC. 382G. DEVELOPMENT PLANNING PROCESS.
``(a) State Development Plan.--In accordance with policies
established by the Authority, each State member shall submit a
development plan for the area of the region represented by the
State member.
``(b) Content of Plan.--A State development plan submitted
under subsection (a) shall reflect the goals, objectives, and
priorities identified in the regional development plan
developed under section 382B(d)(2).
``(c) Consultation With Interested Local Parties.--In
carrying out the development planning process (including the
selection of programs and projects for assistance), a State
may--
``(1) consult with--
``(A) local development districts; and
``(B) local units of government; and
``(2) take into consideration the goals,
objectives, priorities, and recommendations of the
entities described in paragraph (1).
``(d) Public Participation.--
``(1) In general.--The Authority and applicable
State and local development districts shall encourage
and assist, to the maximum extent practicable, public
participation in the development, revision, and
implementation of all plans and programs under this
subtitle.
``(2) Regulations.--The Authority shall develop
guidelines for providing public participation described
in paragraph (1), including public hearings.
``SEC. 382H. PROGRAM DEVELOPMENT CRITERIA.
``(a) In General.--In considering programs and projects to
be provided assistance under this subtitle, and in establishing
a priority ranking of the requests for assistance provided by
the Authority, the Authority shall follow procedures that
ensure, to the maximum extent practicable, consideration of--
``(1) the relationship of the project or class of
projects to overall regional development;
``(2) the per capita income and poverty and
unemployment rates in an area;
``(3) the financial resources available to the
applicants for assistance seeking to carry out the
project, with emphasis on ensuring that projects are
adequately financed to maximize the probability of
successful economic development;
``(4) the importance of the project or class of
projects in relation to other projects or classes of
projects that may be in competition for the same funds;
``(5) the prospects that the project for which
assistance is sought will improve, on a continuing
rather than a temporary basis, the opportunities for
employment, the average level of income, or the
economic development of the area served by the project;
and
``(6) the extent to which the project design
provides for detailed outcome measurements by which
grant expenditures and the results of the expenditures
may be evaluated.
``(b) No Relocation Assistance.--No financial assistance
authorized by this subtitle shall be used to assist a person or
entity in relocating from 1 area to another, except that
financial assistance may be used as otherwise authorized by
this title to attract businesses from outside the region to the
region.
``(c) Reduction of Funds.--Funds may be provided for a
program or project in a State under this subtitle only if the
Authority determines that the level of Federal or State
financial assistance provided under a law other than this
subtitle, for the same type of program or project in the same
area of the State within the region, will not be reduced as a
result of funds made available by this subtitle.
``SEC. 382I. APPROVAL OF DEVELOPMENT PLANS AND PROJECTS.
``(a) In General.--A State or regional development plan or
any multistate subregional plan that is proposed for
development under this subtitle shall be reviewed by the
Authority.
``(b) Evaluation by State Member.--An application for a
grant or any other assistance for a project under this subtitle
shall be made through and evaluated for approval by the State
member of the Authority representing the applicant.
``(c) Certification.--An application for a grant or other
assistance for a project shall be approved only on
certification by the State member that the application for the
project--
``(1) describes ways in which the project complies
with any applicable State development plan;
``(2) meets applicable criteria under section 382H;
``(3) provides adequate assurance that the proposed
project will be properly administered, operated, and
maintained; and
``(4) otherwise meets the requirements of this
subtitle.
``(d) Votes for Decisions.--On certification by a State
member of the Authority of an application for a grant or other
assistance for a specific project under this section, an
affirmative vote of the Authority under section 382B(c) shall
be required for approval of the application.
``SEC. 382J. CONSENT OF STATES.
``Nothing in this subtitle requires any State to engage in
or accept any program under this subtitle without the consent
of the State.
``SEC. 382K. RECORDS.
``(a) Records of the Authority.--
``(1) In general.--The Authority shall maintain
accurate and complete records of all transactions and
activities of the Authority.
``(2) Availability.--All records of the Authority
shall be available for audit and examination by the
Comptroller General of the United States and the
Inspector General of the Department of Agriculture
(including authorized representatives of the
Comptroller General and the Inspector General of the
Department of Agriculture).
``(b) Records of Recipients of Federal Assistance.--
``(1) In general.--A recipient of Federal funds
under this subtitle shall, as required by the
Authority, maintain accurate and complete records of
transactions and activities financed with Federal funds
and report on the transactions and activities to the
Authority.
``(2) Availability.--All records required under
paragraph (1) shall be available for audit by the
Comptroller General of the United States, the Inspector
General of the Department of Agriculture, and the
Authority (including authorized representatives of the
Comptroller General, the Inspector General of the
Department of Agriculture, and the Authority).
``(c) Annual Audit.--The Inspector General of the
Department of Agriculture shall audit the activities,
transactions, and records of the Authority on an annual basis.
``SEC. 382L. ANNUAL REPORT.
``Not later than 180 days after the end of each fiscal
year, the Authority shall submit to the President and to
Congress a report describing the activities carried out under
this subtitle.
``SEC. 382M. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There is authorized to be appropriated
to the Authority to carry out this subtitle $30,000,000 for
each of fiscal years 2001 through 2002, to remain available
until expended.
``(b) Administrative Expenses.--Not more than 5 percent of
the amount appropriated under subsection (a) for a fiscal year
shall be used for administrative expenses of the Authority.
``SEC. 382N. TERMINATION OF AUTHORITY.
``This subtitle and the authority provided under this
subtitle expire on October 1, 2002.''.
SEC. 504. AREA COVERED BY LOWER MISSISSIPPI DELTA DEVELOPMENT
COMMISSION.
(a) In General.--Section 4(2)(D) of the Delta Development
Act (42 U.S.C. 3121 note; 102 Stat. 2246) is amended by
inserting ``Natchitoches,'' after ``Winn,''.
(b) Conforming Amendment.--The matter under the heading
``salaries and expenses'' under the heading ``Farmers Home
Administration'' in title II of Public Law 100-460 (102 Stat.
2246) is amended in the fourth proviso by striking ``carry
out'' and all that follows through ``bills are hereby'' and
inserting ``carry out S. 2836, the Delta Development Act, as
introduced in the Senate on September 27, 1988, and that bill
is''.
TITLE VI--DAKOTA WATER RESOURCES ACT OF 2000
SECTION 601. SHORT TITLE.
This title may be cited as the ``Dakota Water Resources Act
of 2000''.
SEC. 602. PURPOSES AND AUTHORIZATION.
Section 1 of Public Law 89-108 (79 Stat. 433; 100 Stat.
418) is amended--
(1) in subsection (a)--
(A) in paragraph (2), by striking ``of''
and inserting ``within'';
(B) in paragraph (5), by striking ``more
timely'' and inserting ``appropriate''; and
(C) in paragraph (7), by striking
``federally-assisted water resource development
project providing irrigation for 130,940 acres
of land'' and inserting ``multipurpose
federally assisted water resource project
providing irrigation, municipal, rural, and
industrial water systems, fish, wildlife, and
other natural resource conservation and
development, recreation, flood control, ground
water recharge, and augmented stream flows'';
(2) in subsection (b)--
(A) by inserting ``, jointly with the State
of North Dakota,'' after ``construct'';
(B) by striking ``the irrigation of 130,940
acres'' and inserting ``irrigation'';
(C) by striking ``fish and wildlife
conservation'' and inserting ``fish, wildlife,
and other natural resource conservation'';
(D) by inserting ``augmented stream flows,
ground water recharge,'' after ``flood
control,''; and
(E) by inserting ``(as modified by the
Dakota Water Resources Act of 2000)'' before
the period at the end;
(3) in subsection (e), by striking ``terminated''
and all that follows and inserting ``terminated.''; and
(4) by striking subsections (f) and (g) and
inserting the following:
``(f) Costs.--
``(1) Estimate.--The Secretary shall estimate--
``(A) the actual construction costs of the
facilities (including mitigation facilities) in
existence as of the date of enactment of the
Dakota Water Resources Act of 2000; and
``(B) the annual operation, maintenance,
and replacement costs associated with the used
and unused capacity of the features in
existence as of that date.
``(2) Repayment contract.--An appropriate repayment
contract shall be negotiated that provides for the
making of a payment for each payment period in an
amount that is commensurate with the percentage of the
total capacity of the project that is in actual use
during the payment period.
``(3) Operation and maintenance costs.--Except as
otherwise provided in this Act or Reclamation Law--
``(A) The Secretary shall be responsible
for the costs of operation and maintenance of
the proportionate share of unit facilities in
existence on the date of enactment of the
Dakota Water Resources Act of 2000 attributable
to the capacity of the facilities (including
mitigation facilities) that remain unused;
``(B) The State of North Dakota shall be
responsible for costs of operation and
maintenance of the proportionate share of
existing unit facilities that are used and
shall be responsible for the full costs of
operation and maintenance of any facility
constructed after the date of enactment of the
Dakota Water Resources Act of 2000; and
``(C) The State of North Dakota shall be
responsible for the costs of providing energy
to authorized unit facilities.
``(g) Agreement Between the Secretary and the State.--The
Secretary shall enter into 1 or more agreements with the State
of North Dakota to carry out this Act, including operation and
maintenance of the completed unit facilities and the design and
construction of authorized new unit facilities by the State.
``(h) Boundary Waters Treaty of 1909.--
``(1) Delivery of water into the hudson bay
basin.--Prior to construction of any water systems
authorized under this Act to deliver Missouri River
water into the Hudson Bay basin, the Secretary, in
consultation with the Secretary of State and the
Administrator of the Environmental Protection Agency,
must determine that adequate treatment can be provided
to meet the requirements of the Treaty between the
United States and Great Britain relating to Boundary
Waters Between the United States and Canada, signed at
Washington, January 11, 1909 (26 Stat. 2448; TS 548)
(commonly known as the Boundary Waters Treaty of 1909).
``(2) Costs.--All costs of construction, operation,
maintenance, and replacement of water treatment and
related facilities authorized by this Act and
attributable to meeting the requirements of the treaty
referred to in paragraph (1) shall be
nonreimbursable.''.
SEC. 603. FISH AND WILDLIFE.
Section 2 of Public Law 89-108 (79 Stat. 433; 100 Stat.
419) is amended--
(1) by striking subsections (b), (c), and (d) and
inserting the following:
``(b) Fish and Wildlife Costs.--All fish and wildlife
enhancement costs incurred in connection with waterfowl
refuges, waterfowl production areas, and wildlife conservation
areas proposed for Federal or State administration shall be
nonreimbursable.
``(c) Recreation Areas.--
``(1) Costs.--If non-Federal public bodies continue
to agree to administer land and water areas approved
for recreation and agree to bear not less than 50
percent of the separable costs of the unit allocated to
recreation and attributable to those areas and all the
costs of operation, maintenance, and replacement
incurred in connection therewith, the remainder of the
separable capital costs so allocated and attributed
shall be nonreimbursable.
``(2) Approval.--The recreation areas shall be
approved by the Secretary in consultation and
coordination with the State of North Dakota.
``(d) Non-Federal Share.--The non-Federal share of the
separable capital costs of the unit allocated to recreation
shall be borne by non-Federal interests, using the following
methods, as the Secretary may determine to be appropriate:
``(1) Services in kind.
``(2) Payment, or provision of lands, interests
therein, or facilities for the unit.
``(3) Repayment, with interest, within 50 years of
first use of unit recreation facilities.'';
(2) in subsection (e)--
(A) by redesignating paragraphs (1) and (2)
as paragraphs (2) and (3), respectively;
(B) by inserting ``(1)'' after ``(e)'';
(C) in paragraph (2) (as redesignated by
subparagraph (A))--
(i) in the first sentence--
(I) by striking ``within
ten years after initial unit
operation to administer for
recreation and fish and
wildlife enhancement'' and
inserting ``to administer for
recreation''; and
(II) by striking ``which
are not included within Federal
waterfowl refuges and waterfowl
production areas''; and
(ii) in the second sentence, by
striking ``or fish and wildlife
enhancement''; and
(D) in the first sentence of paragraph (3)
(as redesignated by subparagraph (A))--
(i) by striking ``, within ten
years after initial operation of the
unit,''; and
(ii) by striking ``paragraph (1) of
this subsection'' and inserting
``paragraph (2)'';
(3) in subsection (f), by striking ``and fish and
wildlife enhancement''; and
(4) in subsection (j)--
(A) in paragraph (1), by striking ``prior
to the completion of construction of Lonetree
Dam and Reservoir''; and
(B) by adding at the end the following:
``(4) Taayer reservoir.--Taayer Reservoir is
deauthorized as a project feature. The Secretary,
acting through the Commissioner of Reclamation, shall
acquire (including acquisition through donation or
exchange) up to 5,000 acres in the Kraft and Pickell
Slough areas and to manage the area as a component of
the National Wildlife Refuge System giving
consideration to the unique wildlife values of the
area. In acquiring the lands which comprise the Kraft
and Pickell Slough complex, the Secretary shall acquire
wetlands in the immediate vicinity which may be
hydrologically related and nearby uplands as may be
necessary to provide for proper management of the
complex. The Secretary shall provide for appropriate
visitor access and control at the refuge.
``(5) Deauthorization of lonetree dam and
reservoir.--The Lonetree Dam and Reservoir is
deauthorized, and the Secretary shall designate the
lands acquired for the former reservoir site as a
wildlife conservation area. The Secretary shall enter
into an agreement with the State of North Dakota
providing for the operation and maintenance of the
wildlife conservation area as an enhancement feature,
the costs of which shall be paid by the Secretary.''.
SEC. 604. INTEREST CALCULATION.
Section 4 of Public Law 89-108 (100 Stat. 435) is amended
by adding at the end the following: ``Interest during
construction shall be calculated only until such date as the
Secretary declares any particular feature to be substantially
complete, regardless of whether the feature is placed into
service.''.
SEC. 605. IRRIGATION FACILITIES.
Section 5 of Public Law 89-108 (100 Stat. 419) is amended--
(1) by striking ``Sec. 5. (a)(1)'' and all that
follows through subsection (c) and inserting the
following:
``SEC. 5. IRRIGATION FACILITIES.
``(a) In General.--
``(1) Authorized development.--In addition to the
5,000-acre Oakes Test Area in existence on the date of
enactment of the Dakota Water Resources Act of 2000,
the Secretary may develop irrigation in--
``(A) the Turtle Lake service area (13,700
acres);
``(B) the McClusky Canal service area
(10,000 acres); and
``(C) if the investment costs are fully
reimbursed without aid to irrigation from the
Pick- Sloan Missouri Basin Program, the New
Rockford Canal service area (1,200 acres).
``(2) Development not authorized.--None of the
irrigation authorized by this section may be developed
in the Hudson Bay/Devils Lake Basin.
``(3) No excess development.--The Secretary shall
not develop irrigation in the service areas described
in paragraph (1) in excess of the acreage specified in
that paragraph, except that the Secretary shall develop
up to 28,000 acres of irrigation in other areas of
North Dakota (such as the Elk/Charbonneau, Mon-Dak,
Nesson Valley, Horsehead Flats, and Oliver-Mercer
areas) that are not located in the Hudson Bay/Devils
Lake drainage basin or James River drainage basin.
``(4) Pumping power.--Irrigation development
authorized by this section shall be considered
authorized units of the Pick-Sloan Missouri Basin
Program and eligible to receive project pumping power.
``(5) Principal supply works.--The Secretary shall
maintain the Snake Creek Pumping Plant, New Rockford
Canal, and McClusky Canal features of the principal
supply works. Subject to the provisions of section (8)
of this Act, the Secretary shall select a preferred
alternative to implement the Dakota Water Resources Act
of 2000. In making this section, one of the
alternatives the Secretary shall consider is whether to
connect the principal supply works in existence on the
date of enactment.'';
(2) by redesignating subsections (d), (e), and (f)
as subsections (b), (c), and (d), respectively;
(3) in the first sentence of subsection (b) (as
redesignated by paragraph (2)), by striking ``(a)(1)''
and inserting ``(a)'';
(4) in the first sentence of subsection (c) (as
redesignated by paragraph (2)), by striking ``Lucky
Mound (7,700 acres), Upper Six Mile Creek (7,500
acres)'' and inserting ``Lucky Mound (7,700 acres) and
Upper Six Mile Creek (7,500 acres), or such other lands
at Fort Berthold of equal acreage as may be selected by
the tribe and approved by the Secretary,''; and
(5) by adding at the end the following:
``(e) Irrigation Report to Congress.--
``(1) In general.--The Secretary shall investigate
and prepare a detailed report on the undesignated
28,000 acres in subsection (a)(3) as to costs and
benefits for any irrigation units to be developed under
Reclamation law.
``(2) Finding.--The report shall include a finding
on the economic, financial and engineering feasibility
of the proposed irrigation unit, but shall be limited
to the undesignated 28,000 acres.
``(3) Authorization.--If the Secretary finds that
the proposed construction is feasible, such irrigation
units are authorized without further Act of Congress.
``(4) Documentation.--No expenditure for the
construction of facilities authorized under this
section shall be made until after the Secretary, in
cooperation with the State of North Dakota, has
prepared the appropriate documentation in accordance
with section 1 and pursuant to the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.) analyzing the direct and indirect impacts of
implementing the report.''.
SEC. 606. POWER.
Section 6 of Public Law 89-108 (79 Stat. 435; 100 Stat.
421) is amended--
(1) in subsection (b)--
(A) by striking ``Notwithstanding the
provisions of'' and inserting ``Pursuant to the
provisions of''; and
(B) by striking ``revenues,'' and all that
follows and inserting ``revenues.''; and
(2) by striking subsection (c) and inserting the
following:
``(c) No Increase in Rates or Affect on Repayment
Methodology.--In accordance with the last sentence of section
302(a)(3) of the Department of Energy Organization Act (42
U.S.C. 7152(a)(3)), section 1(e) shall not result in any
reallocation of project costs and shall not result in increased
rates to Pick-Sloan Missouri Basin Program customers. Nothing
in the Dakota Water Resources Act of 2000 alters or affects in
any way the repayment methodology in effect as of the date of
enactment of that Act for other features of the Pick-Sloan
Missouri Basin Program.''.
SEC. 607. MUNICIPAL, RURAL, AND INDUSTRIAL WATER SERVICE.
Section 7 of Public Law 89-108 (100 Stat. 422) is amended--
(1) in subsection (a)(3)--
(A) in the second sentence--
(i) by striking ``The non-Federal
share'' and inserting ``Unless
otherwise provided in this Act, the
non-Federal share'';
(ii) by striking ``each water
system'' and inserting ``water
systems'';
(iii) by inserting after the second
sentence the following: ``The State may
use the Federal and non-Federal funds
to provide grants or loans for
municipal, rural, and industrial water
systems. The State shall use the
proceeds of repaid loans for municipal,
rural, and industrial water systems.
Proceeds from loan repayments and any
interest thereon shall be treated as
Federal funds.''; and
(iv) by striking the last sentence
and inserting the following: ``The
Southwest Pipeline Project, the
Northwest Area Water Supply Project,
the Red River Valley Water Supply
Project, and other municipal,
industrial, and rural water systems in
the State of North Dakota shall be
eligible for funding under the terms of
this section. Funding provided under
this section for the Red River Valley
Water Supply Project shall be in
addition to funding for that project
under section 10(a)(1)(B). The amount
of non-Federal contributions made after
May 12, 1986, that exceeds the 25
percent requirement shall be credited
to the State for future use in
municipal, rural, and industrial
projects under this section.''; and
(2) by striking subsections (b), (c), and (d) and
inserting the following:
``(b) Water Conservation Program.--The State of North
Dakota may use funds provided under subsections (a) and
(b)(1)(A) of section 10 to develop and implement a water
conservation program. The Secretary and the State shall jointly
establish water conservation goals to meet the purposes of the
State program and to improve the availability of water supplies
to meet the purposes of this Act. If the State achieves the
established water conservation goals, the non-Federal cost
share for future projects under subsection (a)(3) shall be
reduced to 24.5 percent.
``(c) Nonreimbursability of Costs.--With respect to the
Southwest Pipeline Project, the Northwest Area Water Supply
Project, the Red River Valley Water Supply Project, and other
municipal, industrial, and rural water systems in North Dakota,
the costs of the features constructed on the Missouri River by
the Secretary of the Army before the date of enactment of the
Dakota Water Resources Act of 2000 shall be nonreimbursable.
``(d) Indian Municipal Rural and Industrial Water Supply.--
The Secretary shall construct, operate, and maintain such
municipal, rural, and industrial water systems as the Secretary
determines to be necessary to meet the economic, public health,
and environmental needs of the Fort Berthold, Standing Rock,
Turtle Mountain (including the Trenton Indian Service Area),
and Fort Totten Indian Reservations and adjacent areas.''.
SEC. 608. SPECIFIC FEATURES.
(a) Sykeston Canal.--Sykeston Canal is hereby deauthorized.
(b) In General.--Public Law 89-108 (100 Stat. 423) is
amended by striking section 8 and inserting the following:
``SEC. 8. SPECIFIC FEATURES.
``(a) Red River Valley Water Supply Project.--
``(1) In general.--Subject to the requirements of
this section, the Secretary shall construct a feature
or features to provide water to the Sheyenne River
water supply and release facility or such other feature
or features as are selected under subsection (d).
``(2) Design and construction.--The feature or
features shall be designed and constructed to meet only
the following water supply requirements as identified
in the report prepared pursuant to subsection (b) of
this section: Municipal, rural, and industrial water
supply needs; ground water recharge; and streamflow
augmentation.
``(3) Commencement of construction.--(A) If the
Secretary selects a project feature under this section
that would provide water from the Missouri River or its
tributaries to the Sheyenne River water supply and
release facility or from the Missouri River or its
tributaries to such other conveyance facility as the
Secretary selects under this section, no later than 90
days after the completion of the final environmental
impact statement, the Secretary shall transmit to
Congress a comprehensive report which provides--
``(i) a detailed description of the
proposed project feature;
``(ii) a summary of major issues addressed
in the environmental impact statement;
``(iii) likely effects, if any, on other
States bordering the Missouri River and on the
State of Minnesota; and
``(iv) a description of how the project
feature complies with the requirements of
section 1(h)(1) of this Act (relating to the
Boundary Waters Treaty of 1909).
``(B) No project feature or features that would
provide water from the Missouri River or its
tributaries to the Sheyenne River water supply and
release facility or from the Missouri River or its
tributaries to such other conveyance facility as the
Secretary selects under this section shall be
constructed unless such feature is specifically
authorized by an Act of Congress approved subsequent to
the Secretary's transmittal of the report required in
subparagraph (A). If, after complying with subsections
(b) through (d) of this section, the Secretary selects
a feature or features using only in-basin sources of
water to meet the water needs of the Red River Valley
identified in subsection (b), such features are
authorized without further Act of Congress. The Act of
Congress referred to in this subparagraph must be an
authorization bill, and shall not be a bill making
appropriations.
``(C) The Secretary may not commence construction
on the feature until a master repayment contract or
water service agreement consistent with this Act
between the Secretary and the appropriate non-Federal
entity has been executed.
``(b) Report on Red River Valley Water Needs and Options.--
``(1) In general.--The Secretary of the Interior
shall conduct a comprehensive study of the water
quality and quantity needs of the Red River Valley in
North Dakota and possible options for meeting those
needs.
``(2) Needs.--The needs addressed in the report
shall include such needs as--
``(A) municipal, rural, and industrial
water supplies;
``(B) water quality;
``(C) aquatic environment;
``(D) recreation; and
``(E) water conservation measures.
``(3) Process.--In conducting the study, the
Secretary through an open and public process shall
solicit input from gubernatorial designees from states
that may be affected by possible options to meet such
needs as well as designees from other federal agencies
with relevant expertise. For any option that includes
an out-of-basin solution, the Secretary shall consider
the effect of the option on other states that may be
affected by such option, as well as other appropriate
considerations. Upon completion, a draft of the study
shall be provided by the Secretary to such states and
federal agencies. Such states and agencies shall be
given not less than 120 days to review and comment on
the study method, findings and conclusions leading to
any alternative that may have an impact on such states
or on resources subject to such federal agencies'
jurisdiction. The Secretary shall receive and take into
consideration any such comments and produce a final
report and transmit the final report to Congress.
``(4) Limitation.--No design or construction of any
feature or features that facilitate an out-of-basin
transfer from the Missouri River drainage basin shall
be authorized under the provisions of this subsection.
``(c) Environmental Impact Statement.--
``(1) In general.--Nothing in this section shall be
construed to supersede any requirements under the
National Environmental Policy Act or the Administrative
Procedures Act.
``(2) Draft.--
``(A) Deadline.--Pursuant to an agreement
between the Secretary and State of North Dakota
as authorized under section 1(g), not later
than 1 year after the date of enactment of the
Dakota Water Resources Act of 2000, the
Secretary and the State of North Dakota shall
jointly prepare and complete a draft
environmental impact statement concerning all
feasible options to meet the comprehensive
water quality and quantity needs of the Red
River Valley and the options for meeting those
needs, including the delivery of Missouri River
water to the Red River Valley.
``(B) Report on status.--If the Secretary
and State of North Dakota cannot prepare and
complete the draft environmental impact
statement within 1 year after the date of
enactment of the Dakota Water Resources Act of
2000, the Secretary, in consultation and
coordination with the State of North Dakota,
shall report to Congress on the status of this
activity, including an estimate of the date of
completion.
``(3) Final.--
``(A) Deadline.--Not later than 1 year
after filing the draft environmental impact
statement, a final environmental impact
statement shall be prepared and published.
``(B) Report on status.--If the Secretary
and State of North Dakota cannot prepare and
complete a final environmental impact statement
within 1 year of the completion of the draft
environmental impact statement, the Secretary,
in consultation and coordination with the State
of North Dakota, shall report to Congress on
the status of this activity, including an
estimate of the date of completion.
``(d) Process for Selection.--
``(1) In general.--After reviewing the final report
required by subsection (b)(1) and complying with
subsection (c), the Secretary, in consultation and
coordination with the State of North Dakota in
coordination with affected local communities, shall
select 1 or more project features described in
subsection (a) that will meet the comprehensive water
quality and quantity needs of the Red River Valley. The
Secretary's selection of an alternative shall be
subject to judicial review.
``(2) Agreements.--If the Secretary selects an
option under paragraph (1) that uses only in-basin
sources of water, not later than 180 days after the
record of decision has been executed, the Secretary
shall enter into a cooperative agreement with the State
of North Dakota to construct the feature or features
selected. If the Secretary selects an option under
paragraph (1) that would require a further act of
Congress under the provisions of subsection (a), not
later than 180 days after the date of enactment of
legislation required under subsection (a) the Secretary
shall enter into a cooperative agreement with the State
of North Dakota to construct the feature or features
authorized by that legislation.
``(e) Sheyenne River Water Supply and Release or Alternate
Features.--The Secretary shall construct, operate, and maintain
a Sheyenne River water supply and release feature (including a
water treatment plant) capable of delivering 100 cubic feet per
second of water or any other amount determined in the reports
under this section, for the cities of Fargo and Grand Forks and
surrounding communities, or such other feature or features as
may be selected under subsection (d).
``(f) Devils Lake.--No funds authorized under this Act may
be used to carry out the portion of the feasibility study of
the Devils Lake basin, North Dakota, authorized under the
Energy and Water Development Appropriations Act of 1993 (Public
Law 102-377), that addresses the needs of the area for
stabilized lake levels through inlet controls, or to otherwise
study any facility or carry out any activity that would permit
the transfer of water from the Missouri River drainage basin
into Devils Lake, North Dakota.''.
SEC. 609. OAKES TEST AREA TITLE TRANSFER.
Public Law 89-108 (100 Stat. 423) is amended by striking
section 9 and inserting the following:
``SEC. 9. OAKES TEST AREA TITLE TRANSFER.
``(a) In General.--Not later than 2 years after execution
of a record of decision under section 8(d) on whether to use
the New Rockford Canal as a means of delivering water to the
Red River Basin as described in section 8, the Secretary shall
enter into an agreement with the State of North Dakota, or its
designee, to convey title and all or any rights, interests, and
obligations of the United States in and to the Oakes Test Area
as constructed and operated under Public Law 99-294 (100 Stat.
418) under such terms and conditions as the Secretary believes
would fully protect the public interest.
``(b) Terms and Conditions.--The agreement shall define the
terms and conditions of the transfer of the facilities, lands,
mineral estate, easements, rights-of-way and water rights
including the avoidance of costs that the Federal Government
would otherwise incur in the case of a failure to agree under
subsection (d).
``(c) Compliance.--The action of the Secretary under this
section shall comply with all applicable requirements of
Federal, State, and local law.
``(d) Failure To Agree.--If an agreement is not reached
within the time limit specified in subsection (a), the
Secretary shall dispose of the Oakes Test Area facilities under
the Federal Property and Administrative Services Act of 1949
(40 U.S.C. 471 et seq.).''.
SEC. 610. AUTHORIZATION OF APPROPRIATIONS.
Section 10 of Public Law 89-108 (100 Stat. 424; 106 Stat.
4669, 4739) is amended--
(1) in subsection (a)--
(A) by striking ``(a)(1) There are
authorized'' and inserting the following:
``(a) Water Distribution Features.--
``(1) In general.--
``(A) Main stem supply works.--There is
authorized'';
(B) in paragraph (1)--
(i) in the first sentence, by
striking ``$270,395,000 for carrying
out the provisions of section 5(a)
through 5(c) and section 8(a)(1) of
this Act'' and inserting ``$164,000,000
to carry out section 5(a)'';
(ii) by inserting after
subparagraph (A) (as designated by
clause (i)) the following:
``(B) Red river valley water supply
project.--There is authorized to be
appropriated to carry out section 8(a)(1)
$200,000,000.''; and
(iii) by striking ``Such sums'' and
inserting the following:
``(C) Availability.--Such sums''; and
(C) in paragraph (2)--
(i) by striking ``(2) There is''
and inserting the following:
``(2) Indian irrigation.--
``(A) In general.--There is'';
(ii) by striking ``for carrying out
section 5(e) of this Act'' and
inserting ``to carry out section
5(c)''; and
(iii) by striking ``Such sums'' and
inserting the following:
``(B) Availability.--Such sums'';
(2) in subsection (b)--
(A) by striking ``(b)(1) There is'' and
inserting the following:
``(b) Municipal, Rural, and Industrial Water Supply.--
``(1) Statewide.--
``(A) Initial amount.--There is'';
(B) in paragraph (1)--
(i) by inserting before ``Such
sums'' the following:
``(B) Additional amount.--In addition to
the amount under subparagraph (A), there is
authorized to be appropriated to carry out
section 7(a) $200,000,000.''; and
(ii) by striking ``Such sums'' and
inserting the following:
``(C) Availability.--Such sums''; and
(C) in paragraph (2)--
(i) by striking ``(2) There are
authorized to be appropriated
$61,000,000'' and all that follows
through ``Act.'' and inserting the
following:
``(2) Indian municipal, rural, and industrial and
other delivery features.--
``(A) Initial amount.--There is authorized
to be appropriated--
``(i) to carry out section 8(a)(1),
$40,500,000; and
``(ii) to carry out section 7(d),
$20,500,000.'';
(ii) by inserting before ``Such
sums'' the following:
``(B) Additional amount.--
``(i) In general.--In addition to
the amount under subparagraph (A),
there is authorized to be appropriated
to carry out section 7(d) $200,000,000.
``(ii) Allocation.--The amount
under clause (i) shall be allocated as
follows:
``(I) $30,000,000 to the
Fort Totten Indian Reservation.
``(II) $70,000,000 to the
Fort Berthold Indian
Reservation.
``(IV) $80,000,000 to the
Standing Rock Indian
Reservation.
``(V) $20,000,000 to the
Turtle Mountain Indian
Reservation.''; and
(ii) by striking ``Such sums'' and
inserting the following:
``(C) Availability.--Such sums'';
(3) in subsection (c)--
(A) by striking ``(c) There is'' and
inserting the following:
``(c) Resources Trust and Other Provisions.--
``(1) Initial amount.--There is''; and
(B) by striking the second and third
sentences and inserting the following:
``(2) Additional amount.--In addition to amount
under paragraph (1), there are authorized to be
appropriated--
``(A) $6,500,000 to carry out recreational
projects; and
``(B) an additional $25,000,000 to carry
out section 11;
to remain available until expended.
``(3) Recreational projects.--Of the funds
authorized under paragraph (2) for recreational
projects, up to $1,500,000 may be used to fund a
wetland interpretive center in the State of North
Dakota.
``(4) Operation and maintenance.--
``(A) In general.-- There are authorized to
be appropriated such sums as are necessary for
operation and maintenance of the unit
(including the mitigation and enhancement
features).
``(B) Authorization limits.--Expenditures
for operation and maintenance of features
substantially completed and features
constructed before the date of enactment of the
Dakota Water Resources Act of 2000, including
funds expended for such purposes since the date
of enactment of Public Law 99-294, shall not be
counted against the authorization limits in
this section.
``(5) Mitigation and enhancement land.--On or about
the date on which the features authorized by section
8(a) are operational, a separate account in the Natural
Resources Trust authorized by section 11 shall be
established for operation and maintenance of the
mitigation and enhancement land associated with the
unit.''; and
(4) by striking subsection (e) and inserting the
following:
``(e) Indexing.--The $200,000,000 amount under subsection
(b)(1)(B), the $200,000,000 amount under subsection (a)(1)(B),
and the funds authorized under subsection (b)(2) shall be
indexed as necessary to allow for ordinary fluctuations of
construction costs incurred after the date of enactment of the
Dakota Water Resources Act of 2000 as indicated by engineering
cost indices applicable for the type of construction involved.
All other authorized cost ceilings shall remain unchanged.''.
SEC. 611. NATURAL RESOURCES TRUST.
Section 11 of Public Law 89-108 (100 Stat. 424) is
amended--
(1) by striking subsection (a) and inserting the
following:
``(a) Contribution.--
``(1) Initial authorization.--
``(A) In general.--From the sums
appropriated under section 10 for the Garrison
Diversion Unit, the Secretary shall make an
annual Federal contribution to a Natural
Resources Trust established by non-Federal
interests in accordance with subsection (b) and
operated in accordance with subsection (c).
``(B) Amount.--The total amount of Federal
contributions under subparagraph (A) shall not
exceed $12,000,000.
``(2) Additional authorization.--
``(A) In general.--In addition to the
amount authorized in paragraph (1), the
Secretary shall make annual Federal
contributions to the Natural Resources Trust
until the amount authorized by section
10(c)(2)(B) is reached, in the manner stated in
subparagraph (B).
``(B) Annual amount.--The amount of the
contribution under subparagraph (A) for each
fiscal year shall be the amount that is equal
to 5 percent of the total amount that is
appropriated for the fiscal year under
subsections (a)(1)(B) and (b)(1)(B) of section
10.''.
(2) in subsection (b), by striking ``Wetlands
Trust'' and inserting ``Natural Resources Trust''; and
(3) in subsection (c)--
(A) by striking ``Wetland Trust'' and
inserting ``Natural Resources Trust'';
(B) by striking ``are met'' and inserting
``is met'';
(C) in paragraph (1), by inserting ``,
grassland conservation and riparian areas''
after ``habitat''; and
(D) in paragraph (2), by adding at the end
the following:
``(C) The power to fund incentives for
conservation practices by landowners.''
TITLE VII
SECTION 701. FINDINGS.
Congress finds that--
(1) there is a continuing need for reconciliation
between Indians and non-Indians;
(2) the need may be met partially through the
promotion of the understanding of the history and
culture of Sioux Indian tribes;
(3) the establishment of a Sioux Nation Tribal
Supreme Court will promote economic development on
reservations of the Sioux Nation and provide investors
that contribute to that development a greater degree of
certainty and confidence by--
(A) reconciling conflicting tribal laws;
and
(B) strengthening tribal court systems;
(4) the reservations of the Sioux Nation--
(A) contain the poorest counties in the
United States; and
(B) lack adequate tools to promote economic
development and the creation of jobs;
(5) the establishment of a Native American Economic
Development Council will assist in promoting economic
growth and reducing poverty on reservations of the
Sioux Nation by--
(A) coordinating economic development
efforts;
(B) centralizing expertise concerning
Federal assistance; and
(C) facilitating the raising of funds from
private donations to meet matching requirements
under certain Federal assistance programs;
(6) there is a need to enhance and strengthen the
capacity of Indian tribal governments and tribal
justice systems to address conflicts which impair
relationships within Indian communities and between
Indian and non-Indian communities and individuals; and
(7) the establishment of the National Native
American Mediation Training Center, with the technical
assistance of tribal and Federal agencies, including
the Community Relations Service of the Department of
Justice, would enhance and strengthen the mediation
skills that are useful in reducing tensions and
resolving conflicts in Indian communities and between
Indian and non-Indian communities and individuals.
SEC. 702. DEFINITIONS.
In this title:
(1) Indian tribe.--The term ``Indian tribe'' has
the meaning given that term in section 4(e) of the
Indian Self-Determination and Education Assistance Act
(25 U.S.C. 450b(e)).
(2) Secretary.--The term ``Secretary'' means the
Secretary of the Interior.
(3) Sioux nation.--The term ``Sioux Nation'' means
the Indian tribes comprising the Sioux Nation.
SEC. 703. RECONCILIATION CENTER.
(a) Establishment.--The Secretary of Housing and Urban
Development, in cooperation with the Secretary, shall
establish, in accordance with this section, a reconciliation
center, to be known as ``Reconciliation Place''.
(b) Location.--Notwithstanding any other provision of law,
the Secretary shall take into trust for the benefit of the
Sioux Nation the parcel of land in Stanley County, South
Dakota, that is described as ``The Reconciliation Place
Addition'' that is owned on the date of enactment of this Act
by the Wakpa Sica Historical Society, Inc., for the purpose of
establishing and operating The Reconciliation Place.
(c) Purposes.--The purposes of Reconciliation Place shall
be as follows:
(1) To enhance the knowledge and understanding of
the history of Native Americans by--
(A) displaying and interpreting the
history, art, and culture of Indian tribes for
Indians and non-Indians; and
(B) providing an accessible repository
for--
(i) the history of Indian tribes;
and
(ii) the family history of members
of Indian tribes.
(2) To provide for the interpretation of the
encounters between Lewis and Clark and the Sioux
Nation.
(3) To house the Sioux Nation Tribal Supreme Court.
(4) To house the Native American Economic
Development Council.
(5) To house the National Native American Mediation
Training Center to train tribal personnel in conflict
resolution and alternative dispute resolution.
(d) Grant.--
(1) In general.--The Secretary of Housing and Urban
Development shall offer to award a grant to the Wakpa
Sica Historical Society of Fort Pierre, South Dakota,
for the construction of Reconciliation Place.
(2) Grant agreement.--
(A) In general.--As a condition to
receiving the grant under this subsection, the
appropriate official of the Wakpa Sica
Historical Society shall enter into a grant
agreement with the Secretary of Housing and
Urban Development.
(B) Consultation.--Before entering into a
grant agreement under this paragraph, the
Secretary of Housing and Urban Development
shall consult with the Secretary concerning the
contents of the agreement.
(C) Duties of the wakpa sica historical
society.--The grant agreement under this
paragraph shall specify the duties of the Wakpa
Sica Historical Society under this section and
arrangements for the maintenance of
Reconciliation Place.
(3) Authorization of appropriations.--There are
authorized to be appropriated to the Department of
Housing and Urban Development $18,258,441, to be used
for the grant under this section.
SEC. 704. SIOUX NATION SUPREME COURT AND NATIONAL NATIVE AMERICAN
MEDIATION TRAINING CENTER.
(a) In General.--To ensure the development and operation of
the Sioux Nation Tribal Supreme Court and the National Native
American Mediation Training Center, the Attorney General of the
United States shall use available funds to provide technical
and financial assistance to the Sioux Nation.
(b) Authorization of Appropriations.--To carry out this
section, there are authorized to be appropriated to the
Department of Justice such sums as are necessary.
TITLE VIII--ERIE CANALWAY NATIONAL HERITAGE CORRIDOR
SEC. 801. SHORT TITLE; DEFINITIONS.
(a) Short Title.--This title may be cited as the ``Erie
Canalway National Heritage Corridor Act''.
(b) Definitions.--For the Purposes of this title, the
following definitions shall apply:
(1) Erie canalway.--The Term ``Erie Canalway''
means the 524 miles of navigable canal that comprise
the New York State Canal System, including the Erie,
Cayuga and Seneca, Oswego, and Champlain Canals and the
historic alignments of these canals, including the
cities of Albany and Buffalo.
(2) Canalway plan.--The term ``Canalway Plan''
means the comprehensive preservation and management
plan for the Corridor required under section 806.
(3) Commission.--The term ``Commission'' means the
Erie Canalway National Heritage Corridor Commission
established under section 804.
(4) Corridor.--The term ``Corridor'' means the Erie
Canalway National Heritage Corridor established under
section 803.
(5) Governor.--The term ``Governor'' means the
Governor of the State of New York.
(6) Secretary.--The term ``Secretary'' means the
Secretary of the Interior.
SEC. 802. FINDINGS AND PURPOSES.
(a) Findings.--The Congress finds that--
(1) the year 2000 marks the 175th Anniversary of
New York State's creation and stewardship of the Erie
Canalway for commerce, transportation and recreational
purposes, establishing the network which made new York
the ``Empire State'' and the Nation's premier
commercial and financial center;
(2) the canals and adjacent areas that comprise the
Erie Canalway are a nationally significant resource of
historic and recreational value, which merit Federal
recognition and assistance;
(3) the Erie Canalway was instrumental in the
establishment of strong political and cultural ties
between New England, upstate New York and the old
Northwest and facilitated the movement of ideas and
people ensuring that social reforms like the abolition
of slavery and the women's rights movement spread
across upstate New York to the rest of the country;
(4) the construction of the Erie Canalway was
considered a supreme engineering feat, and most
American canals were modeled after New York State's
canal;
(5) at the time of construction, the Erie Canalway
was the largest public works project ever undertaken by
a state, resulting in the creation of critical
transportation and commercial routes to transport
passengers and goods;
(6) the Erie Canalway played a key role in turning
New York City into a major port and New York State into
the preeminent center for commerce, industry, and
finance in North America and provided a permanent
commercial link between the Port of New York and the
cities of eastern Canada, a cornerstone of the peaceful
relationship between the two countries;
(7) the Erie Canalway proved the depth and force of
American ingenuity, solidified a national identity, and
found an enduring place in American legend, song, and
art;
(8) there is national interest in the preservation
and interpretation of the Erie Canalway's important
historical, natural, cultural, and scenic resources;
and
(9) partnerships among Federal, State, and local
governments and their regional entities, non-profit
organizations, and the private sector offer the most
effective opportunities for the preservation and
interpretation of the Erie Canalway.
(b) Purposes.--The purposes of this title are--
(1) to designate the Erie Canalway National
Heritage Corridor;
(2) to provide for and assist in the
identification, preservation, promotion, maintenance
and interpretation of the historical, natural,
cultural, scenic, and recreational resources of the
Erie Canalway in ways that reflect its national
significance for the benefit of current and future
generations;
(3) to promote and provide access to the Erie
Canalway's historical, natural, cultural, scenic and
recreational resources;
(4) to provide a frame work to assist the State of
New York, its units of local government, and the
communities within the Erie Canalway in the development
of integrated cultural, historical, recreational,
economic, and community development programs in order
to enhance and interpret the unique and nationally
significant resources of the Erie Canalway; and
(5) to authorize Federal financial and technical
assistance to the Commission to serve these purposes
for the benefit of the people of the State of New York
and the nation.
SEC. 803. THE ERIE CANALWAY NATIONAL HERITAGE CORRIDOR.
(a) Establishment.--To carry out the purposes of this title
there is established the Erie Canalway National Heritage
Corridor in the State of New York.
(b) Boundaries.--The boundaries of the Corridor shall
include those lands generally depicted on a map entitled ``Erie
Canalway National Heritage Area'' numbered ERIE/80,000 and
dated October 2000. This map shall be on file and available for
public inspection in the appropriate office of the National
Park Service, the office of the Commission, and the office of
the New York State Canal Corporation in Albany, New York.
(c) Ownership and Operation of the New York State Canal
System.--The New York State Canal System shall continue to be
owned, operated, and managed by the State of New York.
SEC. 804. THE ERIE CANALWAY NATIONAL HERITAGE CORRIDOR COMMISSION.
(a) Establishment.--There is established the Erie Canalway
National Heritage Corridor Commission. The purpose of the
Commission shall be--
(1) to work with Federal, State, and local
authorities to develop and implement the Canalway Plan;
and
(2) to foster the integration of canal-related
historical, cultural, recreational, scenic, economic
and community development initiatives within the
Corridor.
(b) Membership.--The Commission shall be composed of 27
members as follows:
(1) The Secretary of the Interior, ex-officio or
the Secretary's designee.
(2) 7 members, appointed by the Secretary after
consideration of recommendations submitted by the
Governor and other appropriate officials, with
knowledge and experience of the following agencies or
those agencies' successors: The New York State
Secretary of State, the New York State Department of
Environment Conservation, the New York State Office of
Parks, Recreation and Historic Preservation, the New
York State Department of Agriculture and Markets, the
New York State Department of Transportation, and the
New York State Canal Corporation, and the Empire State
Development Corporation.
(3) The remaining 19 members who reside within the
Corridor and are geographically dispersed throughout
the Corridor shall be from local governments and the
private sector with knowledge of tourism, economic and
community development, regional planning, historic
preservation, cultural or natural resource management,
conservation, recreation, and education or museum
services. These members will be appointed by the
Secretary as follows--
(A) 11 members based on a recommendation
from each member of the United States House of
Representatives whose district shall encompass
the Corridor. Each shall be a resident of the
district from which they shall be recommended.
(B) 2 members based on a recommendation
from each United States Senator from New York
State.
(C) 6 members who shall be residents of any
county constituting the Corridor. One such
member shall have knowledge and experience of
the Canal Recreationway Commission.
(c) Appointments and Vacancies.--Members of the Commission
other than ex-officio members shall be appointed for terms of 3
years. Of the original appointments, 6 shall be for a term of 1
year, 6 shall be for a term of 2 years and 7 shall be for a
term of 3 years. Any member of the Commission appointed for a
definite term may serve after expiration of the term until the
successor of the member is appointed. Any member appointed to
fill a vacancy shall serve for the remainder of the term for
which the predecessor was appointed. Any vacancy on the
Commission shall be filled in the same manner in which the
original appointment was made.
(d) Compensation.--Members of the Commission shall receive
no compensation for their service on the Commission. Members of
the Commission, other than employees of the State and Canal
Corporation, while away from their homes or regular places of
business to perform services for the Commission, shall be
allowed travel expenses, including per diem in lieu of
subsistence, in the same manner as persons employed
intermittently in Government service are allowed under section
5703 of title 5, United States Code.
(e) Election of Officers.--The Commission shall elect the
chairperson and the vice chairperson on an annual basis. The
vice chairperson shall serve as the chairperson in the absence
of the chairperson.
(f) Quorum and Voting.--14 members of the Commission shall
constitute a quorum but a lesser number may hold hearings. Any
member of the Commission may vote by means of a signed proxy
exercised by another member of the Commission, however, any
member voting by proxy shall not be considered present for
purposes of establishing a quorum. For the transaction of any
business or the exercise of any power of the Commission, the
Commission shall have the power to act by a majority vote of
the members present at any meeting at which a quorum is in
attendance.
(g) Meetings.--The Commission shall meet at least quarterly
at the call of the chairperson or 14 of its members. Notice of
Commission meetings and agendas for the meeting shall be
published in local newspapers throughout the Corridor. Meetings
of the Commission shall be subject to section 552b of title 5,
United States Code (relating to open meetings).
(h) Powers of the Commission.--To the extent that Federal
funds are appropriated, the Commission is authorized--
(1) to procure temporary and intermittent services
and administrative facilities at rates determined to be
reasonable by the Commission to carry out the
responsibilities of the Commission;
(2) to request and accept the services of personnel
detailed from the State of New York or any political
subdivision, and to reimburse the State or political
subdivision for such services;
(3) to request and accept the services of any
Federal agency personnel, and to reimburse the Federal
agency for such services;
(4) to appoint and fix the compensation of staff to
carry out its duties;
(5) to enter into cooperative agreements with the
State of New York, with any political subdivision of
the State, or any person for the purposes of carrying
out the duties of the Commission;
(6) to make grants to assist in the preparation and
implementation of the Canalway Plan;
(7) to seek, accept, and dispose of gifts,
bequests, grants, or donations of money, personal
property, or services, received from any source. For
purposes of section 170(c) of the Internal Revenue Code
of 1986, any gift to the Commission shall be deemed to
be a gift to the United States;
(8) to assist others in developing educational,
informational, and interpretive programs and
facilities, and other such activities that may promote
the implementation of the Canalway Plan;
(9) to hold hearings, sit and act at such times and
places, take such testimony, and receive such evidence,
as the Commission may consider appropriate; the
Commission may not issue subpoenas or exercise any
subpoena authority;
(10) to use the United States mails in the same
manner as other departments or agencies of the United
States;
(11) to request and receive from the Administrator
of General Services, on a reimbursable basis, such
administrative support services as the Commission may
request; and
(12) to establish such advisory groups as the
Commission deems necessary.
(i) Acquisition of Property.--Except as provided for
leasing administrative facilities under subsection 804(h)(1),
the Commission may not acquire any real property or interest in
real property.
(j) Termination.--The Commission shall terminate on the day
occurring 10 years after the date of the enactment of this
title.
SEC. 805. DUTIES OF THE COMMISSION.
(a) Preparation of Canalway Plan.--Not later than 3 years
after the Commission receives Federal funding for this purpose,
the Commission shall prepare and submit a comprehensive
preservation and management Canalway Plan for the Corridor to
the Secretary and the Governor for review and approval. In
addition to the requirements outlined for the Canalway Plan in
section 806, the Canalway Plan shall incorporate and integrate
existing federal, state, and local plans to the extent
appropriate regarding historic preservation, conservation,
education and interpretation, community development, and
tourism-related economic development for the Corridor that are
consistent with the purpose of this title. The Commission shall
solicit public comment on the development of the Canalway Plan.
(b) Implementation of Canalway Plan.--After the Commission
receives Federal funding for this purpose, and after review and
upon approval of the Canalway Plan by the Secretary and the
Governor, the Commission shall--
(1) undertake action to implement the Canalway Plan
so as to assist the people of the State of New York in
enhancing and interpreting the historical, cultural,
educational, natural, scenic, and recreational
potential of the Corridor identified in the Canalway
Plan; and
(2) support public and private efforts in
conservation and preservation of the Canalway's
cultural and natural resources and economic
revitalization consistent with the goals of the
Canalway Plan.
(c) Priority Actions.--Priority actions which may be
carried out by the Commission under subsection 805(b), include
the following:
(1) assisting in the appropriate preservation
treatment of the remaining elements of the original
Erie Canal;
(2) assisting the State, and local governments, and
nonprofit organizations in designing, establishing and
maintaining visitor centers, museums, and other
interpretive exhibits in the Corridor;
(3) assisting in the public awareness and
appreciation for the historic, cultural, natural,
scenic, and recreational resources and sites in the
Corridor;
(4) assisting the State of New York, local
governments, and nonprofit organizations in the
preservation and restoration of any historic building,
site, or district in the Corridor;
(5) encouraging, by appropriate means, enhanced
economic development in the Corridor consistent with
the goals of the Canalway Plan and the purposes of this
title; and
(6) ensuring that clear, consistent signs
identifying access points and sites of interest are put
in place in the Corridor.
(d) Annual Reports and Audits.--For any year in which
Federal funds have been received under this title, the
Commission shall submit an annual report and shall make
available an audit of all relevant records to the Governor and
the Secretary identifying its expenses and any income, the
entities to which any grants or technical assistance were made
during the year for which the report was made, and
contributions by other parties toward achieving Corridor
purposes.
SEC. 806. CANALWAY PLAN.
(a) Canalway Plan Requirements.--The Canalway Plan shall--
(1) include a review of existing plans for the
Corridor, including the Canal Recreationway Plan and
Canal Revitalization Program, and incorporate them to
the extent feasible to ensure consistence with local,
regional and state planning efforts;
(2) provide a thematic inventory, survey, and
evaluation of historic properties that should be
conserved, restored, developed, or maintained because
of their natural, cultural, or historic significance
within the Corridor in accordance with the regulations
for the National Register of Historic Places;
(3) identify public and private-sector preservation
goals and strategies for the Corridor;
(4) include a comprehensive interpretive plan that
identifies, develops, supports, and enhances
interpretation and education programs within the
Corridor that may include--
(A) research related to the construction
and history of the canals and the cultural
heritage of the canal workers, their families,
those that traveled along the canals, the
associated farming activities, the landscape,
and the communities;
(B) documentation of and methods to support
the perpetuation of music, art, poetry,
literature and folkways associated with the
canals; and
(C) educational and interpretative programs
related to the Erie Canalway developed in
cooperation with State and local governments,
educational institutions, and nonprofit
institutions;
(5) include a strategy to further the recreational
development of the Corridor that will enable users to
uniquely experience the canal system;
(6) propose programs to protect, interpret and
promote the Corridor's historical, cultural,
recreational, educational, scenic and natural
resources;
(7) include an inventory of canal-related natural,
cultural and historic sites and resources located in
the Area;
(8) recommend Federal, State, and local strategies
and policies to support economic development,
especially tourism-related development and recreation,
consistent with the purposes of the Corridor;
(9) develop criteria and priorities for financial
preservation assistance;
(10) identify and foster strong cooperative
relationships between the National Parks Service, the
New York State Canal Corporation, other Federal and
State agencies, and nongovernmental organizations;
(11) recommend specific areas for development of
interpretive, educational, and technical assistance
centers associated with the Corridor; and
(12) contain a program for implementation of the
Canalway Plan by all necessary parties.
(b) Approval of the Canalway Plan.--The Secretary and the
Governor shall approve or disapprove the Canalway Plan not
later than 90 days after receiving the Canalway Plan.
(c) Criteria.--The Secretary may not approve the plan
unless the Secretary finds that the plan, if implemented, would
adequately protect the significant historical, cultural,
natural, and recreational resources of the Corridor and
consistent with such protection provide adequate and
appropriate outdoor recreational opportunities and economic
activities within the Corridor. In determining whether or not
to approve the Canalway Plan, the Secretary shall consider
whether--
(1) the Commission has afforded adequate
opportunity, including public hearings, for public and
governmental involvement in the preparation of the
Canalway Plan; and
(2) the Secretary has received adequate assurances
from the Governor and appropriate state officials that
the recommended implementation program identified in
the plan will be initiated within a reasonable time
after the date of approval of the Canalway Plan and
such program will ensure effective implementation of
State and local aspects of the Canalway Plan.
(d) Disapproval of Canalway Plan.--If the Secretary or the
Governor do not approve the Canalway Plan, the Secretary or the
Governor shall advise the Commission in writing within 90 days
the reasons therefore and shall indicate any recommendations
for revisions. Following completion of any necessary revisions
of the Canalway Plan, the Secretary and the Governor shall have
90 days to either approve or disapprove of the revised Canalway
Plan.
(e) Amendments to Canalway Plan.--The Secretary and the
Governor shall review substantial amendments to the Canalway
Plan. Funds appropriated pursuant to this title may not be
expended to implement the changes made by such amendments until
the Secretary and the Governor approve the amendments.
SEC. 807. DUTIES OF THE SECRETARY.
(a) In General.--The Secretary is authorized to assist the
Commission in the preparation of the Canalway Plan.
(b) Technical Assistance.--Pursuant to an approved Canalway
Plan, the Secretary is authorized to enter into cooperative
agreements with, provide technical assistance to and award
grants to the Commission to provide for the preservation and
interpretation of the natural, cultural, historical,
recreational, and scenic resources of the Corridor, if
requested by the Commission.
(c) Early Actions.--Prior to approval of the Canalway Plan,
with the approval of the Commission, the Secretary may provide
technical and planning assistance for early actions that are
important to the purposes of this title and that protect and
preserve resources.
(d) Canalway Plan Implementation.--Upon approval of the
Canalway Plan, the Secretary is authorized to implement those
activities that the Canalway Plan has identified that are the
responsibility of the Secretary or agent of the Secretary to
undertake in the implementation of the Canalway Plan.
(e) Detail.--Each fiscal year during the existence of the
Commission and upon the request of the Commission, the
Secretary shall detail to the Commission, on a nonreimbursable
basis, 2 employees of the Department of the Interior to enable
the Commission to carry out the Commission's duties with regard
to the preparation and approval of the Canalway Plan. Such
detail shall be without interruption or loss of civil service
status, benefits, or privileges.
SEC. 808. DUTIES OF OTHER FEDERAL ENTITIES.
Any Federal entity conducting or supporting any activity
directly affecting the Corridor, and any unit of government
acting pursuant to a grant of Federal funds or a Federal permit
or agreement conducting or supporting such activities may--
(1) consult with the Secretary and the Commission
with respect to such activities;
(2) cooperate with the Secretary and the Commission
in carrying out their duties under this title and
coordinate such activities with the carrying out of
such duties; and
(3) conduct or support such activities in a manner
consistent with the Canalway Plan unless the Federal
entity, after consultation with the Secretary and the
Commission, determines there is no practicable
alternative.
SEC. 809. SAVINGS PROVISIONS.
(a) Authority of Governments.--Nothing in this title shall
be construed to modify, enlarge, or diminish any authority of
the Federal, State, or local governments to regulate any use of
land as provided for by law or regulation.
(b) Zoning or Land.--Nothing in this title shall be
construed to grant powers of zoning or land use to the
Commission.
(c) Local Authority and Private Property.--Nothing in this
title shall be construed to affect or to authorize the
Commission to interfere with--
(1) the rights of any person with respect to
private property;
(2) any local zoning ordinance or land use plan of
the State of New York or political subdivision thereof;
or
(3) any State or local canal related development
plans including but not limited to the Canal
Recreationway Plan and the Canal Revitalization
Program.
(d) Fish and Wildlife.--The designation of the Corridor
shall not be diminish the authority of the State of New York to
manage fish and wildlife, including the regulation of fishing
and hunting within the Corridor.
SEC. 810. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--
(1) Corridor.--There is authorized to be
appropriated for the Corridor not more than $1,000,000
for any fiscal year. Not more than a total of
$10,000,000 may be appropriated for the Corridor under
this title.
(2) Matching requirement.--Federal funding provided
under this paragraph may not exceed 50 percent of the
total cost of any activity carried out with such funds.
The non-Federal share of such support may be in the
form of cash, services, or in-kind contributions,
fairly valued.
(b) Other Funding.--In addition to the sums authorized in
subsection (a), there are authorized to be appropriated to the
Secretary of the Interior such sums as are necessary for the
Secretary for planning and technical assistance.
TITLE IX--LAW ENFORCEMENT PAY EQUITY
SEC. 901. SHORT TITLE
This title may be cited as the ``Law Enforcement Pay Equity
Act of 2000''.
SEC. 902. ESTABLISHMENT OF UNIFORM SALARY SCHEDULE FOR UNITED STATES
SECRET SERVICE UNIFORMED DIVISION AND UNITED STATES
PARK POLICE.
(a) In General.--Section 501(c)(1) of the District of
Columbia Police and Firemen's Salary Act of 1958 (sec. 4-
416(c)(1), DC Code) is amended to read as follows:
``(c)(1) The annual rates of basic compensation of officers
and members of the United States Secret Service Uniformed
Division and the United States Park Police, serving in classes
corresponding or similar to those in the salary schedule in
section 101, shall be fixed in accordance with the following
schedule of rates:
----------------------------------------------------------------------------------------------------------------
``Salary class and title Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7
----------------------------------------------------------------------------------------------------------------
Time between steps 52 weeks
104 weeks
----------------------------------------------------------------------------------------------------------------
Years in service 1 2 3 5 7 9
----------------------------------------------------------------------------------------------------------------
1: Private......................... 32,623 34,587 36,626 38,306 41,001 43,728 45,407
3: Detective....................... 42,378 44,502 46,620 48,746 50,837
4: Sergeant........................ 46,151 48,446 50,746 53,056
5: Lieutenant \1\.................. 50,910 53,462 56,545
7: Captain \1\..................... 59,802 62,799
8: Inspector/Major \1\............. 69,163 72,760
9: Deputy Chief \1\................ 79,768 85,158
10: Assistant Chief \2\
11: Chief, United States Secret
Service Uniformed Division, United
States Park Police \3\
----------------------------------------------------------------------------------------------------------------
\1\ The rate of basic pay for positions in Salary Class 5, 7, 8, and 9 is limited to 95 percent of the rate of
pay for level V of the Executive Schedule.
\2\ The rate of basic pay for positions in Salary Class 10 will be equal to 95 percent of the rate of pay for
level V of the Executive Schedule.
\3\ The rate of basic pay for positions in Salary Class 11 will be equal to the rate of pay for level V of the
Executive Schedule.
----------------------------------------------------------------------------------------------------------------
``Salary class and title Step 8 Step 9 Step 10 Step 11 Step 12 Step 13 Step 14
----------------------------------------------------------------------------------------------------------------
Time between steps 104 weeks 156 weeks 208 weeks
----------------------------------------------------------------------------------------------------------------
Years in service 11 13 15 18 22 26 30
----------------------------------------------------------------------------------------------------------------
1: Private......................... 47,107 48,801 50,498 53,448 55,394 57,036 58,746
3: Detective....................... 52,972 55,086 57,204 61,212 63,337 65,462 67,426
4: Sergeant........................ 55,372 57,691 59,999 63,558 65,867 68,176 70,221
5: Lieutenant \1\.................. 59,120 61,688 64,258 68,197 70,744 73,290 75,489
7: Captain \1\..................... 65,797 68,757 71,747 76,292 79,309 82,325 84,796
8: Inspector/Major \1\............. 76,542 80,524 83,983 87,645 91,827 95,464 99,075
9: Deputy Chief \1\................ 90,578 95,980 99,968 103,957 107,945 111,933 115,291
10: Assistant Chief \2\
11: Chief, United States Secret
Service Uniformed Division, United
States Park Police \3\
----------------------------------------------------------------------------------------------------------------
\1\ The rate of basic pay for positions in Salary Class 5, 7, 8, and 9 is limited to 95 percent of the rate of
pay for level V of the Executive Schedule.
\2\ The rate of basic pay for positions in Salary Class 10 will be equal to 95 percent of the rate of pay for
level V of the Executive Schedule.
\3\ The rate of basic pay for positions in Salary Class 11 will be equal to the rate of pay for level V of the
Executive Schedule.
(b) Freeze of Current Rate for Locality-based Comparability
Adjustments.--Notwithstanding any other provision of law,
including this title or any provision of law amended by this
title, no officer or member of the United States Secret Service
Uniformed Division or the United States Park Police may be paid
locality pay under section 5304 or section 5304a of title 5,
United States Code, at a percentage rate for the applicable
locality in excess of the rate in effect for pay periods during
calendar year 2000.
(c) Conforming Amendments.--
(1) Application of provisions to park police.--
Section 501(c) of such Act (sec. 4-416(c), DC Code) is
amended--
(A) in paragraph (2), by striking
``Treasury'' and inserting the following:
``Treasury, and the annual rates of basic
compensation of officers and members of the
United States Park Police shall be adjusted by
the Secretary of the Interior,'';
(B) in paragraph (5), by inserting after
``Uniformed Division'' the following: ``or
officers and members of the United States Park
Police'';
(C) in paragraph (6)(A), by inserting after
``Uniformed Division'' the following: ``or the
United States Park Police''; and
(D) in paragraph (7)(A), by inserting after
``Uniformed Division'' the following: ``or the
United States Park Police''.
(2) Termination of current adjustment authority.--
Section 501(b) of such Act (sec. 4-416(b), DC Code) is
amended by adding at the end the following new
paragraph:
``(4) This subsection shall not apply with respect to any
pay period for which the salary schedule under subsection (c)
applies to the United States Park Police.''.
SEC. 903. REVISION OF CAPS ON MAXIMUM COMPENSATION.
(a) Annual Salary Under Schedule.--Section 501(c)(2) of the
District of Columbia Police and Firemen's Salary Act of 1958
(sec. 4-416(c)(2), DC Code) is amended by striking the period
at the end and inserting the following: ``, except that in no
case may the annual rate of basic compensation for any such
officer or member exceed the rate of basic pay payable for
level IV of the Executive Schedule contained in subchapter II
of chapter 53 of title 5, United States Code.''.
(b) Repeal of Cap on Combined Basic Pay and Longevity
Pay.--Section 501(c) of such Act (sec. 4-416(c), DC Code) is
amended by striking paragraph (4).
(c) Limitation on Pay Period Earnings for Comp Time.--
Section 1(h) of the Act entitled ``An Act to provide a five-day
week for officers and members of the Metropolitan Police force,
the United States Park Police force, and the White House Police
force, and for other purposes'', approved August 15, 1950 (sec.
4-1104(h), DC Code), is amended--
(1) in paragraphs (1) and (2), by striking
``Metropolitan Police force; or of the Fire Department
of the District of Columbia; or of the United States
Park Police'' each place it appears and inserting
``Metropolitan Police force or of the Fire Department
of the District of Columbia''; and
(2) in paragraph (3), by inserting after ``United
States Secret Service Uniformed Division'' each place
it appears the following: ``or of the United States
Park Police''.
SEC. 904. DETERMINATION OF SERVICE STEP ADJUSTMENTS.
(a) Method for Determination of Adjustments.--Section
303(a) of the District of Columbia Police and Firemen's Salary
Act of 1958 (sec. 4-412(a), DC Code) is amended--
(1) in the matter preceding paragraph (1), by
``Each'' and inserting ``Except as provided in
paragraph (5), each''; and
(2) by adding at the end the following new
paragraph:
``(5) Each officer and member of the United States
Secret Service Uniformed Division and the United States
Park Police with a current performance rating of
`satisfactory' or better, shall have a service step
adjustment in the following manner:
``(A) Each officer and member in service
step 1, 2, or 3 shall be advanced in
compensation successively to the next higher
service step at the beginning of the 1st pay
period immediately subsequent to the completion
of 52 calendar weeks of active service in the
officer's or member's service step.
``(B) Each officer and member in service
step 4, 5, 6, 7, 8, or 9 shall be advanced in
compensation successively to the next higher
service step at the beginning of the 1st pay
period immediately subsequent to the completion
of 104 calendar weeks of active service in the
officer's or member's service step.
``(C) Each officer and member in service
step 10 shall be advanced in compensation
successively to the next higher service step at
the beginning of the 1st pay period immediately
subsequent to the completion of 156 calendar
weeks of active service in the officer's or
member's service step.
``(D) Each officer and member in service
steps 11 or 12, or 13 shall be advanced in
compensation successively to the next higher
service step at the beginning of the 1st pay
period immediately subsequent to the completion
of 208 calendar weeks of active service in the
officer's or member's service step.''.
(b) Use of Total Creditable Service To Determine Step
Placement.--Section 304 of such Act (sec. 4-413, DC Code) is
amended--
(1) in subsection (a), by striking ``(b)'' and
inserting ``(b) or (c)''; and
(2) by adding at the end the following new
subsection:
``(c)(1) Each officer and member of the United States
Secret Service Uniformed Division or the United States Park
Police who is promoted or transferred to a higher salary shall
receive basic compensation in accordance with the officer's or
member's total creditable service.
``(2) For purposes of this subsection, an officer's or
member's creditable service is any police service in pay status
with the United States Secret Service Uniformed Division,
United States Park Police, or Metropolitan Police
Department.''.
(c) Conforming Amendment.--Section 401(a) of such Act (sec.
4-415(a), DC Code) is amended by adding at the end the
following new paragraph:
``(4) This subsection shall not apply to officers and
members of the United States Secret Service Uniformed Division
or the United States Park Police.''.
SEC. 905. CONVERSION TO NEW SALARY SCHEDULE.
(a) In General.--
(1) Determination of rates of basic pay.--Effective
on the 1st day of the 1st pay period beginning six
months after the date of enactment of this Act, the
Secretary of the Treasury shall fix the rates of basic
pay for officers and members of the United States
Secret Service Uniformed Division, and the Secretary of
the Interior shall fix the rates of basic pay for
officers and members of the United States Park Police,
in accordance with this subsection.
(2) Placement on revised salary schedule.--
(A) In general.--Each officer and member
shall be placed in and receive basic
compensation at the corresponding scheduled
service step of the salary schedule under
section 501(c) of the District of Columbia
Police and Firemen's Salary Act of 1958 (as
amended by section 902(a)) in accordance with
the member's total years of creditable service,
receiving credit for all service step
adjustments. If the scheduled rate of pay for
the step to which the officer or member would
be assigned in accordance with this paragraph
is lower than the officer's or member's salary
immediately prior to the enactment of this
paragraph, the officer or member will be placed
in and receive compensation at the next higher
service step.
(B) Credit for increases during
transition.--Each member whose position is to
be converted to the salary schedule under
section 501(b) of the District of Columbia
Police and Firemen's Salary Act of 1958 (as
amended by subsection (a)) and who, prior to
the effective date of this section has earned,
but has not been credited with, an increase in
his or her rate of pay shall be afforded that
increase before such member is placed in the
corresponding service step in the salary
schedule under section 501(b).
(C) Creditable service described.--For
purposes of this paragraph, an officer's or
member's creditable service is any police
service in pay status with the United States
Secret Service Uniformed Division, United
States Park Police, or Metropolitan Police
Department.
(b) Hold Harmless for Current Total Compensation.--
Notwithstanding any other provision of law, if the total rate
of compensation for an officer or employee for any pay period
occurring after conversion to the salary schedule pursuant to
subsection (a) (determined by taking into account any locality-
based comparability adjustments, longevity pay, and other
adjustments paid in addition to the rate of basic compensation)
is less than the officer's or employee's total rate of
compensation (as so determined) on the date of enactment, the
rate of compensation for the officer or employee for the pay
period shall be equal to--
(1) the rate of compensation on the date of
enactment (as so determined); increased by
(2) a percentage equal to 50 percent of sum of the
percentage adjustments made in the rate of basic
compensation under section 501(c) of the District of
Columbia Police and Firemen's Salary Act of 1958 (as
amended by subsection (a)) for pay periods occurring
after the date of enactment and prior to the pay period
involved.
(c) Conversion Not Treated as Transfer or Promotion.--The
conversion of positions and individuals to appropriate classes
of the salary schedule under section 501(c) of the District of
Columbia Police and Firemen's Salary Act of 1958 (as amended by
section 902(a)) and the initial adjustments of rates of basic
pay of those positions and individuals in accordance with
subsection (a) shall not be considered to be transfers or
promotions within the meaning of section 304 of the District of
Columbia Police and Firemen's Salary Act of 1958 (sec. 4-413,
DC Code).
(d) Transfer of Credit for Satisfactory Service.--Each
individual whose position is converted to the salary schedule
under section 501(c) of the District of Columbia Police and
Firemen's Salary Act of 1958 (as amended by section 902(a)) in
accordance with subsection (a) shall be granted credit for
purposes of such individual's first service step adjustment
under the salary schedule in such section 501(c) for all
satisfactory service performed by the individual since the
individual's last increase in basic pay prior to the adjustment
under that section.
(e) Adjustment To Take Into Account General Schedule
Adjustments During Transition.--The rates provided under the
salary schedule under section 501(c) of the District of
Columbia Police and Firemen's Salary Act of 1958 (as amended by
section 902(a)) shall be increased by the percentage of any
annual adjustment applicable to the General Schedule authorized
under section 5303 of title 5, United States Code, which takes
effect during the period which begins on the date of the
enactment of this Act and ends on the 1st day of the 1st pay
period beginning six months after the date of enactment of this
Act.
(f) Conversion Not Treated as Salary Increase for Purposes
of Certain Pensions and Allowances.--The conversion of
positions and individuals to appropriate classes of the salary
schedule under section 501(c) of the District of Columbia
Police and Firemen's Salary Act of 1958 (as amended by section
2(a)) and the initial adjustments of rates of basic pay of
those positions and individuals in accordance with subsection
(a) shall not be treated as an increase in salary for purposes
of section 3 of the Act entitled ``An Act to provide increased
pensions for widows and children of deceased members of the
Police Department and the Fire Department of the District of
Columbia'', approved August 4, 1949 (sec. 4-604, DC Code), or
section 301 of the District of Columbia Police and Firemen's
Salary Act of 1953 (sec. 4-605, DC Code).
SEC. 906. PAY ADJUSTMENTS FOR CERTAIN POSITIONS.
(a) Technician Duty.--Section 302 of the District of
Columbia Police and Firemen's Salary Act of 1958 (sec. 4-411,
DC Code) is amended--
(1) in subsection (b), by striking ``$810 per
annum'' and inserting the following: ``$810 per annum,
except in the case of an officer or member of the
United States Secret Service Uniformed Division or the
United States Park Police, who shall receive a per
annum amount equal to 6 percent of the sum of such
officer's or member's rate of basic compensation plus
locality pay adjustments'';
SEC. 907. CONFORMING PROVISIONS RELATING TO FEDERAL LAW ENFORCEMENT PAY
REFORM ACT.
(a) Termination of Existing Special Salary Rates and
Adjustments.--Beginning on the effective date of this Act--
(1) no existing special salary rates shall be
authorized for members of the United States Park Police
under section 5305 of title 5, United States Code (or
any previous similar provision of law); and
(2) no special rates of pay or special pay
adjustments shall be applicable to members of the
United States Park Police pursuant to section 405 of
the Federal Law Enforcement Pay Reform Act of 1990.
(b) Conforming Amendments.--(1) Section 405(b) of the
Federal Law Enforcement Pay Reform Act of 1990 (5 U.S.C. 5303
note) is amended to read as follows:
``(b) This subsection applies with respect to any--
``(1) special agent within the Diplomatic Security
Service;
``(2) probation officer (referred to in section
3672 of title 18, United States Code); or
``(3) pretrial services officer (referred to in
section 3153 of title 18, United States Code).''.
(2) Section 405(c) of such Act (5 U.S.C. 5303 note) is
amended to read as follows:
``(c) For purposes of this section, the term `appropriate
agency head' means--
``(1) with respect to any individual under
subsection (b)(1), the Secretary of State; or
``(2) with respect to any individual under
subsection (b)(2) or (b)(3), the Director of the
Administrative Office of the United States Courts.''.
SEC. 908. SERVICE LONGEVITY PAYMENTS FOR METROPOLITAN POLICE
DEPARTMENT.
(a) Inclusion of Service Longevity Payments in Amount of
Federal Benefit Payments Made to Metropolitan Police Department
Officers and Members.--Section 11012 of the District of
Columbia Retirement Protection Act of 1997 (Public Law 105-33;
111 Stat. 718; D.C. Code, sec. 1-762.2) is amended by adding at
the end the following new subsection:
``(e) Treatment of Increases in Certain Police Service
Longevity Payments.--For purposes of subsection (a), in
determining the amount of a Federal benefit payment made to an
officer or member of the Metropolitan Police Department, the
benefit payment to which the officer or member is entitled
under the District Retirement Program shall include any amounts
which would have been included in the benefit payment under
such Program if the amendments made by the Police Recruiting
and Retention Enhancement Amendment Act of 1999 had taken
effect prior to the freeze date.''.
(b) Conforming Amendment.--Section 11003(5) of such Act
(Public Law 105-33; 111 Stat. 717; D.C. Code, sec. 1-761.2(5))
is amended by inserting after ``except as'' the following:
``provided under section 11012(e) and as''.
(c) Effective Date.--The amendments made by this section
shall apply with respect to Federal benefit payments made after
the date of the enactment of this Act.
SEC. 909. EFFECTIVE DATE.
Except as provided in section 908(c), this title and the
amendments made by this title shall become effective on the 1st
day of the 1st pay period beginning 6 months after the date of
enactment.
TITLE X--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Administrative Provisions
Sec. 1001. Section 206(d) of the Departments of Veterans
Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 2000 (42 U.S.C. 12701 note) is
amended--
(1) in paragraph (1), by striking ``V'' and
inserting ``III''; and
(2) in paragraph (4), by striking ``reimbursable''
and inserting ``non-reimbursable''.
Sec. 1002. For purposes of Part 2, Subpart B of the
Federal Housing Enterprises Financial Safety and Soundness Act
of 1992 (Public Law 102-550), notwithstanding any other
provision of law or regulation, for purposes of measuring the
extent of compliance with the housing goals for the years 2001,
2002, and 2003, the Secretary of Housing and Urban Development
shall assign, in the case of the Federal Home Loan Mortgage
Corporation, 1.35 units of credit toward achievement of each
housing goal for each unit of multifamily housing (excepting
units located in properties having between five and fifty
units) qualifying as affordable under such housing goal.
Sec. 1003. Notwithstanding any other provision of law,
neither the City of Toledo, Ohio, nor the Secretary of Housing
and Urban Development (HUD) is required to enforce any
requirements associated with Housing Development Grant number
00H006H6402 provided to the City of Toledo, Ohio, that prohibit
or restrict the conversion of the rental units in the Beacon
Place project to condominium ownership: Provided, that the City
of Toledo and the Secretary of HUD are authorized to take any
actions necessary to cause any such prohibition or restriction
to be removed from the appropriate land records and otherwise
terminated: Provided further, That converted units shall remain
available as rental housing to those persons, including low-
and very-low income persons who presently reside in the units:
Provided further, That the conversion proposal for Beacon Place
apartments shall not reduce the number of affordable housing
units in Toledo: Provided further, That any and all proceeds
from such conversion are used to retire debt associated with
the Beacon Place project or to rehabilitate the properties
known as the Cubbon Properties.
Sec. 1004. The Comptroller General of the United States
shall conduct a study on the following topics--
(a)(1) The adequacy of the capital structure of the
Federal Home Loan Bank (FHLB) System as it relates to
the risks posed by: (A) the traditional advances
business of the FHLB System; (B) the expanded
collateral provisions and permissible uses of advances
under the Gramm-Leach-Bliley Act of 1999; and (C) the
MPF, and other programs providing for the direct
acquisition of mortgages. The analysis should examine
the credit risk, interest rate risk, and operations
risk associated with each structure;
(2) The risks associated with further growth in the
direct acquisition of mortgages by the Federal Home
Loan Bank System; and
(3) A comparison of the risk-based capital standard
proposed by the Federal Housing Finance Board for the
Federal Home Loan Bank System to the standard proposed
by the Office of Federal Housing Enterprise Oversight
for the Federal National Mortgage Association and the
Federal Home Loan Mortgage Corporation.
(b) Not later than six months after the date of the
enactment of this Act, the Comptroller General shall
submit to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Banking and
Financial Services of the House of Representatives a
report on the study required under subsection (a).
TITLE XI--DEPARTMENT OF THE TREASURY
Administrative Provision
SEC. 1101. HONORING THE NAVAJO CODE TALKERS.
(a) Congress finds that--
(1) On December 7, 1941, the Japanese Empire
attacked Pearl Harbor and war was declared by Congress
the following day;
(2) The military code, developed by the United
States for transmitting messages, had been deciphered
by the Japanese, and a search by United States
Intelligence was made to develop new means to counter
the enemy;
(3) The United States government called upon the
Navajo Nation to support the military effort by
recruiting and enlisting twenty-nine Navajo men to
serve as Marine Corps Radio Operators;
(4) the number of Navajo enlistees later increased
to more than three hundred and fifty;
(5) at the time, the Navajos were often treated as
second-class citizens, and they were a people who were
discouraged from using their own native language;
(6) the Navajo Marine Corps Radio Operators, who
became known as the ``Navajo Code Talkers'', were used
to develop a code using their native language to
communicate military messages in the Pacific;
(7) to the enemy's frustration, the code developed
by these Native Americans proved to be unbreakable, and
was used extensively throughout the Pacific theater;
(8) the Navajo language, discouraged in the past,
was instrumental in developing the most significant and
successful military code of the time;
(9) at Iwo Jima alone, the Navajo Code Talkers
passed over 800 error-free messages in a 48-hour
period;
(10) Use of the Navajo Code was so successful,
that--
(A) military commanders credited it in
saving the lives of countless American soldiers
and in the success of the engagements of the
United States in the battles of Guadalcanal,
Tarawa, Saipan, Iwo Jima, and Okinawa;
(B) some Code Talkers were guarded by
fellow marines, whose role was to kill them in
case of imminent capture by the enemy; and
(C) the Navajo code was kept secret for 23
years after the end of World War II;
(11) following the conclusion of World War II, the
Department of Defense maintained the secrecy of the
Navajo code until it was declassified in 1968; and
(12) only then did a realization of the sacrifice
and valor of these brave Native Americans emerge from
history.
(b)(1) To express recognition by the United States and
its citizens in honoring the Navajo Code Talkers, who
distinguished themselves in performing a unique, highly
successful communications operation that greatly assisted in
saving countless lives and hastening the end of World War II in
the Pacific, the President is authorized--
(A) to award to each of the original twenty-nine
Navajo Code Talkers, or a surviving family member, on
behalf of the Congress, a gold medal of appropriate
design, honoring the Navajo Code Talkers; and
(B) to award to each person who qualified as a
Navajo Code Talker (MOS 642), or a surviving family
member, on behalf of the Congress, a silver medal of
appropriate design, honoring the Navajo Code Talkers.
(2) For purposes of the awards authorized by paragraph
(l), the Secretary of the Treasury (in this section referrd to
as the ``Secretary'') shall strike gold and silver medals with
suitable emblems, devices, and inscriptions, to be determined
by the Secretary.
(c) The Secretary may strike and sell duplicates in
bronze of the medals struck pursuant to this section, under
such regulations as the Secretary may prescribe, and a price
sufficient to cover the costs thereof, including labor,
materials, dies, use of machinery, and overhead expenses, and
the cost of the medals.
(d) The medals struck pursuant to this section are
national medals for purposes of chapter 51, of title 31, United
States Code.
(e)(1) There is authorized to be charged against the
United States Mint Public Enterprise Fund, such sums as may be
necessary to pay for the costs of the medals authorized by this
section.
(2) Amounts received from the sale of duplicate medals
under this section shall be deposited in the United States Mint
Public Enterprise Fund.
TITLE XII--ENVIRONMENTAL PROTECTION AGENCY
Administrative Provision
SEC. 1201. ABOVEGROUND STORAGE TANK GRANT PROGRAM.
(a) Definitions.--In this provision:
(1) Aboveground storage tank.--The term
``aboveground storage tank'' means any tank or
combination of tanks (including any connected pipe)--
(A) that is used to contain an accumulation
of regulated substances; and
(B) the volume of which (including the
volume of any connected pipe) is located wholly
above the surface of the ground.
(2) Administrator.--The term ``Administrator''
means the Administrator of the Environmental Protection
Agency.
(3) Denali commission.--The term ``Denali
Commission'' means the commission established by
section 303(a) of the Denali Commission Act of 1998 (42
U.S.C. 3121 note).
(4) Federal environmental law.--The term ``Federal
environmental law'' means--
(A) the Oil Pollution Control Act of 1990
(33 U.S.C. 2701 et seq.);
(B) the Comprehensive Environmental
Response, Compensation, and Liability Act of
1980 (42 U.S.C. 9601 et seq.);
(C) the Soild Waste Disposal Act (42 U.S.C.
6901 et seq.); or
(D) the Federal Water Pollution Control Act
(33 U.S.C. 1251 et seq.); or
(E) any other Federal law that is
applicable to the release into the environment
of a regulated substance, as determined by the
Administrator.
(5) Native village.--The term ``Native village''
has the meaning given the term in section 11(b) in
Public Law 92-203 (85 Stat. 688).
(6) Program.--The term ``program'' means the
Aboveground Storage Tank Grant Program established by
subsection (b)(1).
(7) Regulated substance.--The term ``regulated
substance'' has the meaning given the term in section
9001 of the Solid Waste Disposal Act (42 U.S.C. 6991).
(8) State.--The term ``State'' means the State of
Alaska.
(b) Establishment.--
(1) In general.--There is established a grant
program to be known as the ``Aboveground Storage Tank
Grant Program''.
(2) Grants.--Under the program, the Administrator
shall award a grant to--
(A) the State, on behalf of a Native
village; or
(B) the Denali Commission.
(c) Use of Grants.--The State or the Denali Commission
shall use the funds of a grant under subsection (b) to repair,
upgrade, or replace 1 or more aboveground storage tanks that--
(1) leaks or poses an imminent threat of leaking,
as certified by the Administrator, the Commandant of
the Coast Guard, or any other appropriate Federal or
State agency (as determined by the Administrator); and
(2) is located in a Native village--
(A) the median household income of which is
less than 80 percent of the median household
income in the State;
(B) that is located--
(i) within the boundaries of--
(I) a unit of the National
Park System;
(II) a unit of the National
Wildlife Refuge System; or
(III) a National Forest; or
(ii) on public land under the
administrative jurisdiction of the
Bureau of Land Management; or
(C) that receives payments from the Federal
Government under chapter 69 of title 31, United
States Code (commonly known as ``payments in
lieu of taxes'').
(d) Reports.--Not later than 1 year after the date on
which the State or the Denali Commission receives a grant under
subsection (c), and annually thereafter, the State or the
Denali Commission, as the case may be, shall submit a report
describing each project completed with grant funds and any
projects planned for the following year, to--
(1) the Administrator;
(2) the Committee on Resources of the House of
Representatives;
(3) the Committee on Environment and Public Works
of the Senate;
(4) the Committee on Appropriations of the House of
Representatives; and
(5) the Committee on Appropriations of the Senate.
(e) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this Act, to remain
available until expended--
(1) $20,000,000 for year 2001; and
(2) such sums as are necessary for each fiscal year
thereafter.
TITLE XIII--NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
Administrative Provision
Sec. 1301. Of the proceeds in any fiscal year from the
sale of timber on Federal property at the John C. Stennis Space
Center, or on additional real property within the restricted
easement area adjacent to the Center, any funds that are in
excess of the amount necessary for the expenses of commonly
accepted forest management practices on such properties may be
retained and used by the National Aeronautics and Space
Administration for the acquisition from willing sellers of up
to a total of 500 acres of real property to establish education
and visitor programs and facilities that promote and preserve
the regional and national history of the area, including the
contributions of Stennis Space Center, and, as necessary, for
wetlands mitigation.
TITLE XIV--CERTAIN ALASKAN CRUISE SHIP OPERATIONS
SECTION 1401. PURPOSE.
The purpose of this Title is to--
(a) Ensure that cruise vessels operating in the waters of
the Alexander Archipelago and the navigable waters of the
United States within the State of Alaska and within the
Kachemak Bay National Estuarine Research Reserve comply with
all applicable environmental laws, including, but not limited
to, the Federal Water Pollution Control Act, as amended (33
U.S.C. 1251 et seq.), the Act to Prevent Pollution from Ships,
as amended (33 U.S.C. 1901 et seq.), and the protections
contained within this Title.
(b) Ensure that cruise vessels do not discharge untreated
sewage within the waters of the Alexander Archipelago, the
navigable waters of the United States in the State of Alaska,
or within the Kachemak Bay National Estuarine Research Reserve.
(c) Prevent the unregulated discharge of treated sewage
and graywater while in ports in the State of Alaska or
traveling near the shore in the Alexander Archipelago and the
navigable waters of the United States in the State of Alaska or
within the Kachemak Bay National Estuarine Research Reserve.
(d) Ensure that discharges of sewage and graywater from
cruise vessels operating in the Alexander Archipelago and the
navigable waters of the United States in the State of Alaska or
within the Kachemak Bay National Estuarine Research Reserve can
be monitored for compliance with the requirements contained in
this Title.
SEC. 1402. APPLICABILITY.
(a) This Title applies to all cruise vessels authorized to
carry 500 or more passengers for hire.
SEC. 1403. PROHIBITION ON DISCHARGE OF UNTREATED SEWAGE.
No person shall discharge any untreated sewage from a
cruise vessel into the waters of the Alexander Archipelago or
the navigable waters of the United States within the State of
Alaska or within the Kachemak Bay National Estuarine Research
Reserve.
SEC. 1404. LIMITATIONS ON DISCHARGE OF TREATED SEWAGE OR GRAYWATER.
(a) No person shall discharge any treated sewage or
graywater from a cruise vessel into the waters of the Alexander
Archipelago or the navigable waters of the United States within
the State of Alaska or within the Kachemak Bay National
Estuarine Research Reserve unless--
(1) the cruise vessel is underway and proceeding at
a speed of not less than six knots;
(2) the cruise vessel is not less than one nautical
mile from the nearest shore, except in areas designated
by the Secretary, in consultation with the State of
Alaska;
(3) the discharge complies with all applicable
cruise vessel effluent standards established pursuant
to this Title and any other applicable law; and
(4) the cruise vessel is not in an area where the
discharge of treated sewage or graywater is prohibited.
(b) The Administrator, in consultation with the Secretary,
may promulgate regulations allowing the discharge of treated
sewage or graywater, otherwise prohibited under paragraphs
(a)(1) and (a)(2) of this section, where the discharge meets
effluent standards determined by the Administrator as
appropriate for discharges into the marine environment. In
promulgating such regulations, the Administrator shall take
into account the best available scientific information on the
environmental effects of the regulated discharges. The effluent
discharge standards promulgated under this section shall, at a
minimum, be consistent with all relevant State of Alaska water
quality standards in force at the time of the enactment of this
Title.
(c) Until such time as the Administrator promulgates
regulations under paragraph (b) of this section, treated sewage
and graywater may be discharged from vessels subject to this
Title in circumstances otherwise prohibited under paragraphs
(a)(1) and (a)(2) of this section, provided that--
(1) the discharge satisfies the minimum level of
effluent quality specified in 40 CFR 133.102, as in
effect on the date of enactment of this Section;
(2) the geometric mean of the samples from the
discharge during any 30-day period does not exceed 20
fecal coliform/100 ml and not more than 10 percent of
the samples exceed 40 fecal coliform/100 ml;
(3) concentrations of total residual chlorine may
not exceed 10.0 g/l; and,
(4) prior to any such discharge occurring, the
owner, operator or master, or other person in charge of
a cruise vessel, can demonstrate test results from at
least five samples taken from the vessel representative
of the effluent to be discharged, on different days
over a 30-day period, conducted in accordance with the
guidelines promulgated by the Administrator in 40 CFR
Part 136, which confirm that the water quality of the
effluents proposed for discharge is in compliance with
paragraphs (1), (2) and (3) of this subsection. To the
extent not otherwise being done by the owner, operator,
master or other person in charge of a cruise vessel
pursuant to section 1406, the owner, operator, master
or other person in charge of a cruise vessel shall
demonstrate continued compliance through periodic
sampling. Such sampling and test results shall be
considered environmental compliance records that must
be made available for inspection pursuant to section
1406(d) of this Title.
SEC. 1405. SAFETY EXCEPTION.
Sections 1403 and 1404 of this Title shall not apply to
discharges made for the purpose of securing the safety of the
cruise vessel or saving life at sea, provided that all
reasonable precautions have been taken for the purpose of
preventing or minimizing the discharge.
SEC. 1406. INSPECTION AND SAMPLING REGIME.
(a) The Secretary shall incorporate into the commercial
vessel examination program an inspection regime sufficient to
verify that cruise vessels visiting ports in the State of
Alaska or operating in the waters of the Alexander Archipelago
or the navigable waters of the United States within the State
of Alaska or within the Kachemak Bay National Estuarine
Research Reserve are in full compliance with this Title, the
Federal Water Pollution Control Act, as amended, and any
regulations issued thereunder, other applicable Federal laws
and regulations, and all applicable international treaty
requirements.
(b) The inspection regime shall, at a minimum, include--
(1) examination of environmental compliance records
and procedures;
(2) inspection of the functionality and proper
operation of installed equipment for abatement and
control of any discharge;
(c) The inspection regime may--
(1) include unannounced inspections of any aspect
of cruise vessel operations, equipment or discharges
pertinent to the verification under subsection (a) of
this section; and
(2) require the owner, operator or master, or other
person in charge of a cruise vessel subject to this
Title to maintain and produce a logbook detailing the
times, types, volumes or flow rates and locations of
any discharges of sewage or graywater under this Title.
(d) The inspection regime shall incorporate a plan for
sampling and testing cruise vessel discharges to ensure that
any discharges of sewage or graywater are in compliance with
this Title, the Federal Water Pollution Control Act, as
amended, and any other applicable laws and regulations, and may
require the owner, operator or master, or other person in
charge of a cruise vessel subject to this Title to conduct such
samples or tests, and to produce any records of such sampling
or testing at the request of the Secretary or Administrator.
SEC. 1407. CRUISE VESSEL EFFLUENT STANDARDS.
Pursuant to this Title and the authority of the Federal
Water Pollution Control Act, as amended, the Administrator may
promulgate effluent standards for treated sewage and graywater
from cruise vessels operating in the waters of the Alexander
Archipelago or the navigable waters of the United States within
the State of Alaska or within the Kachemak Bay National
Estuarine Research Reserve. Regulations implementing such
standards shall take into account the best available scientific
information on the environmental effects of the regulated
discharges and the availability of new technologies for
wastewater treatment. Until such time as the Administrator
promulgates such effluent standards, treated sewage effluent
discharges shall not have a fecal coliform bacterial count of
greater than 200 per 100 milliliters nor suspended solids
greater than 150 milligrams per liter.
SEC. 1408. REPORTS.
(a) Any owner, operator or master, or other person in
charge of a cruise vessel who has knowledge of a discharge from
the cruise vessel in violation of section 1403 or 1404 or
pursuant to section 1405 of this Title, or any regulations
promulgated thereunder, shall immediately report that discharge
to the Secretary, who shall provide a copy to the Administrator
upon request.
(b) The Secretary may prescribe the form of reports
required under this section.
SEC. 1409. ENFORCEMENT.
(a) Administrative Penalties.--
(1) Violations.--Any person who violates section
1403, 1404, 1408, or 1413 of this Title, or any
regulations promulgated pursuant to this Title may be
assessed a class I or class II civil penalty by the
Secretary or the Administrator.
(2) Classes of penalties.--
(A) Class i.--The amount of a class I civil
penalty under this section may not exceed
$10,000 per violation, except that the maximum
amount of any class I civil penalty under this
section shall not exceed $25,000. Before
assessing a civil penalty under this clause,
the Secretary or Administrator, as the case may
be, shall give to the person to be assessed
such penalty written notice of the Secretary's
or Administrator's proposal to assess the
penalty and the opportunity to request, within
30 days of the date the notice is received by
such person, a hearing on the proposed penalty.
Such hearing shall not be subject to section
554 or 556 of Title 5, but shall provide a
reasonable opportunity to be heard and to
present evidence.
(B) Class ii.--The amount of a class II
civil penalty under this section may not exceed
$10,000 per day for each day during which the
violation continues, except that the maximum
amount of any class II civil penalty under this
section shall not exceed $125,000. Except as
otherwise provided in this subsection, a class
II civil penalty shall be assessed and
collected in the same manner, and subject to
the same provisions as in the case of civil
penalties assessed and collected after notice
and an opportunity for a hearing on the record
in accordance with section 554 of Title 5,
United States Code. The Secretary and
Administrator may issue rules for discovery
procedures for hearings under this paragraph.
(3) Rights of interested persons.--
(A) Public notice.--Before issuing an order
assessing a class II civil penalty under this
section, the Secretary or Administrator, as the
case may be, shall provide public notice of and
reasonable opportunity to comment on the
proposed issuance of each order.
(B) Presentation of evidence.--Any person
who comments on a proposed assessment of a
class II civil penalty under this section shall
be given notice of any hearing held under this
paragraph and of the order assessing such
penalty. In any hearing held under this
paragraph, such person shall have a reasonable
opportunity to be heard and present evidence.
(C) Rights of interested persons to a
hearing.--If no hearing is held under
subsection (2) before issuance of an order
assessing a class II civil penalty under this
section, any person who commented on the
proposed assessment may petition, within 30
days after the issuance of such order, the
Administrator or Secretary, as the case may be,
to set aside such order and to provide a
hearing on the penalty. If the evidence
presented by the petitioner in support of the
petition is material and was not considered in
the issuance of the order, the Administrator or
Secretary shall immediately set aside such
order and provide a hearing in accordance with
subsection (2)(B). If the Administrator or
Secretary denies a hearing under this clause,
the Administrator or Secretary shall provide to
the petitioner, and publish in the Federal
Register, notice of and the reasons for such
denial.
(4) Finality of order.--An order assessing a class
II civil penalty under this paragraph shall become
final 30 days after its issuance unless a petition for
judicial review is filed under subparagraph (6) or a
hearing is requested under subsection (3)(C). If such a
hearing is denied, such order shall become final 30
days after such denial.
(5) Effect of action on compliance.--No action by
the Administrator or Secretary under this paragraph
shall affect any person's obligation to comply with any
section of this Title.
(6) Judicial review.--Any person against whom a
civil penalty is assessed under this paragraph or who
commented on the proposed assessment of such penalty in
accordance with subsection (3) may obtain review of
such assessment--
(A) in the case of assessment of a class I
civil penalty, in the United States District
Court for the District of Columbia or in the
District of Alaska, or
(B) in the case of assessment of a class II
civil penalty, in United States Court of
Appeals for the District of Columbia Circuit or
for any other circuit in which such person
resides or transacts business, by filing a
notice of appeal in such court within the 30-
day period beginning on the date the civil
penalty order is issued and by simultaneously
sending a copy of such notice by certified mail
to the Administrator or Secretary, as the case
may be, and the Attorney General. The
Administrator or Secretary shall promptly file
in such court a certified copy of the record on
which the order was issued. Such court shall
not set aside or remand such order unless there
is not substantial evidence in the record,
taken as a whole, to support the finding of a
violation or unless the Administrator's or
Secretary's assessment of the penalty
constitutes an abuse of discretion and shall
not impose additional civil penalties for the
same violation unless the Administrator's or
Secretary's assessment of the penalty
constitutes an abuse of discretion.
(7) Collection.--If any person fails to pay an
assessment of a civil penalty--
(A) after the assessment has become final,
or
(B) after a court in an action brought
under subsection (6) has entered a final
judgment in favor of the Administrator or
Secretary, as the case may be, the
Administrator or Secretary shall request the
Attorney General to bring a civil action in an
appropriate district court to recover the
amount assessed (plus interest at currently
prevailing rates from the date of the final
order or the date of the final judgment, as the
case may be). In such an action, the validity,
amount, and appropriateness of such penalty
shall not be subject to review. Any person who
fails to pay on a timely basis the amount of an
assessment of a civil penalty as described in
the first sentence of this subparagraph shall
be required to pay, in addition to such amount
and interest, attorneys fees and costs for
collection proceedings and a quarterly
nonpayment penalty for each quarter during
which such failure to pay persists. Such
nonpayment penalty shall be in an amount equal
to 20 percent of the aggregate amount of such
person's penalties and nonpayment penalties
which are unpaid as of the beginning of such
quarter.
(8) Subpoenas.--The Administrator or Secretary, as
the case may be, may issue subpoenas for the attendance
and testimony of witnesses and the production of
relevant papers, books, or documents in connection with
hearings under this section. In case of contumacy or
refusal to obey a subpoena issued pursuant to this
subsection and served upon any person, the district
court of the United States for any district in which
such person is found, resides, or transacts business,
upon application by the United States and after notice
to such person, shall have jurisdiction to issue an
order requiring such person to appear and give
testimony before the Administrator or Secretary or to
appear and produce documents before the Administrator
or Secretary, or both, and any failure to obey such
order of the court may be punished by such court as a
contempt thereof.
(b) Civil Penalties.--
(1) Generally.--Any person who violates section
1403, 1404, 1408 or 1413 of this Title, or any
regulations promulgated pursuant to this Title shall be
subject to a civil penalty not to exceed $25,000 per
day for each violation. Each day a violation continues
constitutes a separate violation.
(2) Jurisdiction.--An action to impose a civil
penalty under this section may be brought in the
district court of the United States for the district in
which the defendant is located, resides, or transacts
business, and such court shall have jurisdiction to
assess such penalty.
(3) Limitation.--A person is not liable for a civil
judicial penalty under this paragraph for a violation
if the person has been assessed a civil administrative
penalty under paragraph (a) for the violation.
(c) Determination of Amount.--In determining the amount of
a civil penalty under paragraphs (a) or (b) of this section,
the court, the Secretary or the Administrator, as the case may
be, shall consider the seriousness of the violation or
violations, the economic benefit (if any) resulting from the
violation, any history of such violations, any good-faith
efforts to comply with the applicable requirements, the
economic impact of the penalty on the violator, and other such
matters as justice may require.
(d) Criminal Penalties.--
(1) Negligent violations.--Any person who
negligently violates section 1403, 1404, 1408 or 1413
of this Title, or any regulations promulgated pursuant
to this Title commits a Class A misdemeanor.
(2) Knowing violations.--Any person who knowingly
violates section 1403, 1404, 1408 or 1413 of this
Title, or any regulations promulgated pursuant to this
Title commits a Class D felony.
(3) False statements.--Any person who knowingly
makes any false statement, representation, or
certification in any record, report or other document
filed or required to be maintained under this Title or
the regulations issued thereunder, or who falsifies,
tampers with, or knowingly renders inaccurate any
testing or monitoring device or method required to be
maintained under this Title, or the regulations issued
thereunder, commits a Class D felony.
(e) Awards.--
(1) The Secretary, the Administrator or the court,
when assessing any fines or civil penalties, as the
case may be, may pay from any fines or civil penalties
collected under this section an amount not to exceed
one-half of the penalty or fine collected, to any
individual who furnishes information which leads to the
payment of the penalty or fine. If several individuals
provide such information, the amount shall be divided
equitably among such individuals. No officer or
employee of the United States, the State of Alaska or
any Federally recognized Tribe who furnishes
information or renders service in the performance of
his or her official duties shall be eligible for
payment under this subsection.
(2) The Secretary, Administrator or the court, when
assessing any fines or civil penalties, as the case may
be, may pay, from any fines or civil penalties
collected under this section, to the State of Alaska or
to any Federally recognized Tribe providing information
or investigative assistance which leads to payment of
the penalty or fine, an amount which reflects the level
of information or investigative assistance provided.
Should the State of Alaska or a Federally recognized
Tribe and an individual under paragraph (1) of this
section be eligible for an award, the Secretary, the
Administrator or the court, as the case may be, shall
divide the amount equitably.
(f) Liability in Rem.--A cruise vessel operated in
violation of this Title or the regulations issued thereunder is
liable in rem for any fine imposed under subsection (d) of this
section or for any civil penalty imposed under subsections (a)
or (b) of this section, and may be proceeded against in the
United States district court of any district in which the
cruise vessel may be found.
(g) Compliance Orders.--
(1) In general.--Whenever on the basis of any
information available to him the Administrator finds
that any person is in violation of section 1403, 1404,
1408 or 1413 of this Title, or any regulations
promulgated pursuant to this Title, the Administrator
shall issue an order requiring such person to comply
with such section or requirement, or shall bring a
civil action in accordance with subsection (b).
(2) Copies of orders, service.--A copy of any order
issued under this subsection shall be sent immediately
by the Administrator to the State of Alaska. In any
case in which an order under this subsection is issued
to a corporation, a copy of such order shall be served
on any appropriate corporate officer. Any order issued
under this subsection shall be by personal service,
shall state with reasonable specificity the nature of
the violation, and shall specify a time for compliance
not to exceed thirty days in the case of a violation of
an interim compliance schedule or operation and
maintenance requirement and not to exceed a time the
Administrator determines to be reasonable in the case
of a violation of a final deadline, taking into account
the seriousness of the violation and any good faith
efforts to comply with applicable requirements.
(h) Civil Actions.--The Administrator is authorized to
commence a civil action for appropriate relief, including a
permanent or temporary injunction, for any violation for which
he is authorized to issue a compliance order under this
subsection. Any action under subsection (h) may be brought in
the district court of the United States for the district in
which the defendant is located or resides or is doing business,
and such court shall have jurisdiction to restrain such
violation and to require compliance. Notice of the commencement
of such action shall be given immediately to the State of
Alaska.
SEC. 1410. DESIGNATION OF CRUISE VESSEL NO-DISCHARGE ZONES.
If the State of Alaska determines that the protection and
enhancement of the quality of some or all of the waters of the
Alexander Archipelago or the navigable waters of the United
States within the State of Alaska or within the Kachemak Bay
National Estuarine Research Reserve require greater
environmental protection, the State of Alaska may petition the
Administrator to prohibit the discharge of graywater and sewage
from cruise vessels operating in such waters. The establishment
of such a prohibition shall be achieved in the same manner as
the petitioning process and prohibition of the discharge of
sewage pursuant to Section 312(f) of the Federal Water
Pollution Control Act, as amended, and the regulations
promulgated thereunder.
SEC. 1411. SAVINGS CLAUSE.
(a) Nothing in this Title shall be construed as
restricting, affecting or amending any other law or the
authority of any department, instrumentality or agency of the
United States.
(b) Nothing in this Title shall in any way affect or
restrict, or be construed to affect or restrict, the authority
of the State of Alaska or any political subdivision thereof--
(1) to impose additional liability or additional
requirements; or
(2) to impose, or determine the amount of a fine or
penalty (whether criminal or civil in nature) for any
violation of law; relating to the discharge of sewage
(whether treated or untreated) or graywater in the
waters of the Alexander Archipelago and the navigable
waters of the United States within the State of Alaska
or within the Kachemak Bay National Estuarine Research
Reserve.
SEC. 1412. REGULATIONS.
The Secretary and the Administrator each may prescribe any
regulations necessary to carry out the provisions of this
Title.
SEC. 1413. INFORMATION GATHERING AUTHORITY.
The authority of Sections 308(a) and (b) of the Federal
Water Pollution Control Act, as amended, shall be available to
the Administrator to carry out the provisions of this Title.
The Administrator and the Secretary shall minimize, to the
extent practicable, duplication of or inconsistency with the
inspection, sampling, testing, recordkeeping and reporting
requirements established by the Secretary under section 1406 of
this Title.
SEC. 1414. DEFINITIONS.
In this title:
(1) Administrator.--The term ``Administrator''
means the Administrator of the United States
Environmental Protection Agency.
(2) Cruise vessel.--The term ``cruise vessel''
means a passenger vessel as defined in section 2101(22)
of Title 46, United States Code. The term ``cruise
vessel'' does not include a vessel of the United States
operated by the Federal Government or a vessel owned
and operated by the government of a State.
(3) Discharge.--The term ``discharge'' means any
release however caused from a cruise vessel, and
includes any escape, disposal, spilling, leaking,
pumping, emitting or emptying.
(4) Graywater.--The term ``graywater'' means only
galley, dishwasher, bath, and laundry waste water. The
term does not include other wastes or waste streams.
(5) Navigable waters.--The term ``navigable
waters'' has the same meaning as in section 502 of the
Federal Water Pollution Control Act, as amended.
(6) Person.--The term ``person'' means an
individual, corporation, partnership, limited liability
company, association, State, municipality, commission
or political subdivision of a State, or any Federally
recognized Tribe.
(7) Secretary.--The term ``Secretary'' means the
Secretary of the department in which the United States
Coast Guard is operating.
(8) Sewage.--The term ``sewage'' means human body
wastes and the wastes from toilets and other
receptacles intended to receive or retain body waste.
(9) Treated sewage.--The term ``treated sewage''
means sewage meeting all applicable effluent limitation
standards and processing requirements of the Federal
Water Pollution Control Act, as amended and of this
Title, and regulations promulgated under either.
(10) Untreated sewage.--The term ``untreated
sewage'' means sewage that is not treated sewage.
(11) Waters of the alexander archipelago.--The term
``waters of the Alexander Archipelago'' means all
waters under the sovereignty of the United States
within or near Southeast Alaska, beginning at a point
58+11,41,,N, 136+39,25,,W [near Cape Spencer Light],
thence southeasterly along a line three nautical miles
seaward of the baseline from which the breadth of the
territorial sea is measured in the Pacific Ocean and
the Dixon Entrance, except where this line intersects
geodesics connecting the following five pairs of
points:
(1) 58+05,17,,N, 136+33,49,,W and 58+11,41,,N,
136+39,25,,W [Cross Sound]
(2) 56+09,40,,N, 134+40,00,,W and 55+49,15,,N,
134+17,40,,W [Chatham Strait]
(3) 55+49,15,,N, 134+17,40,,W and 55+50,30,,N,
133+54,15,,W [Sumner Strait]
(4) 54+41,30,,N, 132+01,00,,W and 54+51,,30,,N,
131+20,45,,W [Clarence Strait]
(5) 54+51,30,,N, 131+20,45,,W and 54+46,15,,N,
130+52,00,,W [Revillagigedo Channel]
The portion of each such geodesic situated beyond 3 nautical
miles from the baseline from which the breadth of the
territorial sea is measured forms the outer limit of the waters
of the Alexander Archipelago in those five locations.
TITLE XV--LIFE ACT AMENDMENTS
SEC. 1501. SHORT TITLE.
This title may be cited as the ``LIFE Act Amendments of
2000''.
SEC. 1502. SUBSTITUTION OF ALTERNATIVE ADJUSTMENT PROVISION.
(a) Extended Application of Section 245(i).--
(1) In general.--Paragraph (1) of section 245(i) of
the Immigration and Nationality Act (8 U.S.C. 1255(i))
is amended--
(A) in subparagraph (A), by striking
``and'' at the end;
(B) in subparagraph (B)(i), by striking
``January 14, 1998'' and inserting ``April 30,
2001'';
(C) in subparagraph (B), by adding ``and''
at the end; and
(D) by inserting after subparagraph (B) the
following new subparagraph:
``(C) who, in the case of a beneficiary of a
petition for classification, or an application for
labor certification, described in subparagraph (B) that
was filed after January 14, 1998, is physically present
in the United States on the date of the enactment of
the LIFE Act Amendments of 2000;''.
(2) Modification in use of funds.--Paragraph (3)(B)
of such section is amended by inserting before the
period the following: ``, except that in the case of
fees attributable to applications for a beneficiary
with respect to whom a petition for classification, or
an application for labor certification, described in
paragraph (1)(B) was filed after January 14, 1998, one-
half of such remaining portion shall be deposited by
the Attorney General into the Immigration Examinations
Fee Account established under section 286(m)''.
(b) Conforming Amendments.--
(1) Subsection (m) of section 245 of the
Immigration and Nationality Act, as added by section
1102(c) of the Legal Immigration Family Equity Act, is
repealed.
(2) Section 245 of the Immigration and Nationality
Act, as amended by section 1102(d)(2) of the Legal
Immigration Family Equity Act, is amended by striking
``or (m)'' each place it appears.
SEC. 1503. MODIFICATION OF SECTION 1104 ADJUSTMENT PROVISIONS.
(a) Inclusion of Additional Class.--Section 1104(b) of the
Legal Immigration Family Equity Act is amended--
(1) in paragraph (1), by striking ``or'' at the
end;
(2) in paragraph (2), by striking the period at the
end and inserting ``; or''; and
(3) by adding at the end the following new
paragraph:
``(3) Zambrano v. INS, vacated sub nom. Immigration
and Naturalization Service v. Zambrano, 509 U.S. 918
(1993).''.
(b) Conforming Application of Consent Provision.--Section
1104(c) of the Legal Immigration Family Equity Act is amended
by adding at the end the following new paragraph:
``(10) Conforming application of consent
provision.--In addition to the waivers provided in
subsection (d)(2) of such section 245A of the
Immigration and Nationality Act, the Attorney General
may grant the alien a waiver of the grounds of
inadmissibility under subparagraphs (A) and (C) of
section 212(a)(9) of such Act (8 U.S.C. 1182(a)(9)). In
granting such waivers, the Attorney General shall use
standards used in granting consent under subparagraphs
(A)(iii) and (C)(ii) of such section.''.
(c) Inapplicability of Removal Order Reinstatement.--
Section 1104 of such Act is further amended--
(1) by redesignating subsection (g) as subsection
(h); and
(2) by inserting after subsection (f) the following
new subsection:
``(g) Inapplicability of Removal Order Reinstatement.--
Section 241(a)(5) of the Immigration and Nationality Act shall
not apply with respect to an alien who is applying for
adjusmtent of status under this section.''.
SEC. 1504. APPLICATION OF FAMILY UNITY PROVISIONS TO SPOUSES AND
UNMARRIED CHILDREN OF CERTAIN LIFE ACT
BENEFICIARIES.
(a) Immigration Benefits.--Except as provided in subsection
(d), in the case of an eligible spouse or child (as described
in subsection (b)), the Attorney General--
(1) shall not remove the alien on a ground
specified in paragraph (1)(A), (1)(B), (1)(C), or
(3)(A) of section 237(a) of the Immigration and
Nationality Act (8 U.S.C. 1227(a)), other than so much
of paragraph (1)(A) of such section as relates to a
ground of inadmissibility described in paragraph (2) or
(3) of section 212(a) of such Act (8 U.S.C. 1182(a));
and
(2) shall authorize the alien to engage in
employment in the United States during the period of
time in which protection is provided under paragraph
(1) and shall provide the alien with an ``employment
authorized'' endorsement or other appropriate document
signifying authorization of employment.
(b) Eligible Spouses and Children.--For purposes of this
section, the term ``eligible spouse or child'' means an alien
who is the spouse or unmarried child of an alien described in
section 1104(b) of the Legal Immigration Family Equity Act if
the spouse or child--
(1) entered the United States before December 1,
1988; and
(2) resided in the United States on such date.
(c) Process for Relief for Eligible Spouses and Children
Outside the United States.--If an alien has obtained lawful
permanent resident status under section 1104 of the Legal
Immigration Family Equity Act and the alien has an eligible
spouse or child who is no longer physically present in the
United States, the Attorney General shall establish a process
under which the eligible spouse or child may be paroled into
the United States in order to obtain the benefits of subsection
(a) unless the Attorney General finds that the spouse or child
would be inadmissible or deportable on any ground, other than a
ground for which the alien would not be subject to removal
under subsection (a)(1). An alien so paroled shall not be
treated as paroled into the United States for purposes of
section 201(c)(4) of the Immigration and Nationality Act (8
U.S.C. 1151(c)(4)).
(d) Exception.--An alien is not eligible for the benefits
of this section if the Attorney General finds that--
(1) the alien has been convicted of a felony or
three or more misdemeanors in the United States; or
(2) the alien is described in section 241(b)(3)(B)
of the Immigration and Nationality Act (8 U.S.C.
1231(b)(3)(B)).
(e) Application of Definitions.--Except as otherwise
specifically provided in this section, the definitions
contained in the Immigration and Nationality Act shall apply in
the administration of this section.
SEC. 1505. MISCELLANEOUS AMENDMENTS TO VARIOUS ADJUSTMENT AND RELIEF
ACTS.
(a) Nicaraguan Adjustment and Central American Relief
Act.--
(1) In general.--Section 202(a) of the Nicaraguan
Adjustment and Central American Relief Act is amended--
(A) by redesignating paragraph (2) as
paragraph (3); and
(B) by inserting after paragraph (1) the
following new paragraph:
``(2) Rules in applying certain provisions.--In the
case of an alien described in subsection (b) or (d) who
is applying for adjustment of status under this
section--
``(A) the provisions of section 241(a)(5)
of the Immigration and Nationality Act shall
not apply; and
``(B) the Attorney General may grant the
alien a waiver of the grounds of
inadmissibility under subparagraphs (A) and (C)
of section 212(a)(9) of such Act.
In granting waivers under subparagraph (B), the
Attorney General shall use standards used in granting
consent under subparagraphs (A)(iii) and (C)(ii) of
such section 212(a)(9).''.
(2) Permitting motion to reopen.--Notwithstanding
any time and number limitations imposed by law on
motions to reopen exclusion, removal, or deportation
proceedings (except limitations premised on an alien's
conviction of an aggravated felony (as defined by
section 101(a) of the Immigration and Nationality
Act)), a national of Cuba or Nicaragua who has become
eligible for adjustment of status under the Nicaraguan
Adjustment and Central American Relief Act as a result
of the amendments made by paragraph (1), may file one
motion to reopen exclusion, deportation, or removal
proceedings to apply for such adjustment under that
Act. The scope of any proceeding reopened on this basis
shall be limited to a determination of the alien's
eligibility for adjustment of status under that Act.
All such motions shall be filed within 180 days of the
date of the enactment of this Act.
(b) Haitian Refugee Immigration Fairness Act of 1998.--
(1) Inapplicability of certain provisions.--Section
902(a) of the Haitian Refugee Immigration Fairness Act
of 1998 is amended--
(A) by redesignating paragraph (2) as
paragraph (3); and
(B) by inserting after paragraph (1) the
following new paragraph:
``(2) Inapplicability of certain provisions.--In
the case of an alien described in subsection (b) or (d)
who is applying for adjustment of status under this
section--
``(A) the provisions of section 241(a)(5)
of the Immigration and Nationality Act shall
not apply; and
``(B) the Attorney General may grant the
alien a waiver of the grounds of
inadmissibility under subparagraphs (A) and (C)
of section 212(a)(9) of such Act.
In granting waivers under subparagraph (B), the
Attorney General shall use standards used in granting
consent under subparagraphs (A)(iii) and (C)(ii) of
such section 212(a)(9).''.
(2) Permitting motion to reopen.--Notwithstanding
any time and number limitations imposed by law on
motions to reopen exclusion, removal, or deportation
proceedings (except limitations premised on an alien's
conviction of an aggravated felony (as defined by
section 101(a) of the Immigration and Nationality
Act)), a national of Haiti who has become eligible for
adjustment of status under the Haitian Refugee
Immigration Fairness Act of 1998 as a result of the
amendments made by paragraph (1), may file one motion
to reopen exclusion, deportation, or removal
proceedings to apply for such adjustment under that
Act. The scope of any proceeding reopened on this basis
shall be limited to a determination of the alien's
eligibility for adjustment of status under that Act.
All such motions shall be filed within 180 days of the
date of the enactment of this Act.
(c) Section 309 of IIRIRA.--Section 309 of the Illegal
Immigration Reform and Immigrant Responsibility Act of 1996 is
amended by adding at the end the following new subsection:
``(h) Relief and Motions To Reopen.--
``(1) Relief.--An alien described in subsection
(c)(5)(C)(i) who is otherwise eligible for--
``(A) suspension of deportation pursuant to
section 244(a) of the Immigration and
Nationality Act, as in effect before the title
III-A effective date; or
``(B) cancellation of removal, pursuant to
section 240A(b) of the Immigration and
Nationality Act and subsection (f) of this
section;
shall not be barred from applying for such relief by
operation of section 241(a)(5) of the Immigration and
National Act, as in effect after the title III-A
effective date.
``(2) Additional motion to reopen permitted.--
Notwithstanding any limitation imposed by law on
motions to reopen removal or deportation proceedings
(except limitations premised on an alien's conviction
of an aggravated felony (as defined by section 101(a)
of the Immigration and Nationality Act)), any alien who
is described in subsection (c)(5)(C)(i) and who has
become eligible for cancellation of removal or
suspension of deportation as a result of the enactment
of paragraph (1) may file one motion to reopen removal
or deportation proceedings in order to apply for
cancellation of removal or suspension of deportation.
The scope of any proceeding reopened on this basis
shall be limited to a determination of the alien's
eligibility for cancellation of removal or suspension
of deportation. The Attorney General shall designate a
specific time period in which all such motions to
reopen are required to be filed. The period shall begin
not later than 60 days after the date of the enactment
of this subsection and shall extend for a period not to
exceed 240 days.
``(3) Construction.--Nothing in this subsection
shall preclude an alien from filing a motion to reopen
pursuant to section 240(b)(5)(C)(ii) of the Immigration
and Nationality Act, or section 242B(c)(3)(B) of such
Act (as in effect before the title III-A effective
date).''.
SEC. 1506. EFFECTIVE DATE.
This title shall take effect as if included in the
enactment of the Legal Immigration Family Equity Act.
TITLE XVI--IMPROVING LITERACY THROUGH FAMILY LITERACY PROJECTS
SEC. 1601. SHORT TITLE.
This title may be cited as the ``Literacy Involves Families
Together Act''.
SEC. 1602. AUTHORIZATION OF APPROPRIATIONS.
Section 1002(b) of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 6302(b)) is amended by striking
``$118,000,000 for fiscal year 1995'' and inserting
``$250,000,000 for fiscal year 2001''.
SEC. 1603. IMPROVING BASIC PROGRAMS OPERATED BY LOCAL EDUCATIONAL
AGENCIES.
Section 1111(c) of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 6311(c)) is amended--
(1) in paragraph (5), by striking ``and'' at the
end;
(2) in paragraph (6), by striking the period at the
end and inserting ``; and''; and
(3) by adding at the end the following:
``(7) the State educational agency will encourage
local educational agencies and individual schools
participating in a program assisted under this part to
offer family literacy services (using funds under this
part), if the agency or school determines that a
substantial number of students served under this part
by the agency or school have parents who do not have a
high school diploma or its recognized equivalent or who
have low levels of literacy.''.
SEC. 1604. EVEN START FAMILY LITERACY PROGRAMS.
(a) Part Heading.--The part heading for part B of title I
of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 6361 et seq.) is amended to read as follows:
``PART B--WILLIAM F. GOODLING EVEN START FAMILY LITERACY PROGRAMS''.
(b) Statement of Purpose.--Section 1201 of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 6361) is
amended--
(1) in paragraph (1), by inserting ``high quality''
after ``build on''; and
(2) by amending paragraph (2) to read as follows:
``(2) promote the academic achievement of children
and adults;'';
(3) by striking the period at the end of paragraph
(3) and inserting ``; and''; and
(4) by adding at the end the following:
``(4) use instructional programs based on
scientifically based reading research (as defined in
section 2252) and the prevention of reading
difficulties for children and adults, to the extent
such research is available.''.
(c) Program Authorized.--
(1) Reservation for migrant programs, outlying
areas, and indian tribes.--Section 1202(a) of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 6362(a)) is amended--
(A) in paragraph (1), in the matter
preceding subparagraph (A), by inserting ``(or,
if such appropriated amount exceeds
$200,000,000, 6 percent of such amount)'' after
``1002(b)'';
(B) in paragraph (2), by striking ``If the
amount of funds made available under this
subsection exceeds $4,600,000,'' and inserting
``After the date of the enactment of the
Literacy Involves Families Together Act,''; and
(C) by adding at the end the following:
``(3) Coordination of programs for american
indians.--The Secretary shall ensure that programs
under paragraph (1)(C) are coordinated with family
literacy programs operated by the Bureau of Indian
Affairs in order to avoid duplication and to encourage
the dissemination of information on high quality family
literacy programs serving American Indians.''.
(2) Reservation for federal activities.--Section
1202(b) of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 6362(b)) is amended to read as
follows:
``(b) Reservation for Federal Activities.--
``(1) Evaluation, technical assistance, program
improvement, and replication activities.--From amounts
appropriated under section 1002(b), the Secretary may
reserve not more than 3 percent of such amounts for
purposes of--
``(A) carrying out the evaluation required
by section 1209; and
``(B) providing, through grants or
contracts with eligible organizations,
technical assistance, program improvement, and
replication activities.
``(2) Research.--In the case of fiscal years 2001
through 2004, if the amount appropriated under section
1002(b) for any of such years--
``(A) is equal to or less than the amounts
appropriated for the preceding fiscal year, the
Secretary may reserve from such amount only the
amount necessary to continue multi-year
activities carried out pursuant to section
1211(b) that began during or prior to the
preceding fiscal year; or
``(B) exceeds the amount appropriated for
the preceding fiscal year, the Secretary shall
reserve from such excess amount $2,000,000 or
50 percent, whichever is less, to carry out
section 1211(b).''.
(d) Reservation for Grants.--Section 1202(c)(1) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
6362(c)(1)) is amended--
(1) by striking ``From funds reserved under section
2260(b)(3), the Secretary shall award grants,'' and
inserting ``For any fiscal year for which at least one
State applies and submits an application that meets the
requirements and goals of this subsection and for which
the amount appropriated under section 1002(b) exceeds
the amount appropriated under such section for the
preceding fiscal year, the Secretary shall reserve,
from the amount of such excess remaining after the
application of subsection (b)(2), the amount of such
remainder or $1,000,000, whichever is less, to award
grants,''; and
(2) by adding at the end ``No State may receive
more than one grant under this subsection.''.
(e) Allocations.--Section 1202(d)(2) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6362(d)(2)) is
amended by striking ``that section'' and inserting ``that
part''.
(f) State Level Activities.--Section 1203(a) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
6363(a)) is amended--
(1) by striking ``5 percent'' and inserting ``a
total of 6 percent''; and
(2) in paragraph (1), by inserting before the
semicolon the following: ``, not to exceed half of such
total''.
(g) Subgrants for Local Programs.--Section 1203(b)(2) of
the Elementary and Secondary Education Act of 1965 (20 U.S.C.
6363(b)(2)) is amended to read as follows:
``(2) Minimum subgrant amounts.--
``(A) In general.--Except as provided in
subparagraphs (B) and (C), no State shall award
a subgrant under paragraph (1) in an amount
less than $75,000.
``(B) Subgrantees in ninth and succeeding
years.--No State shall award a subgrant under
paragraph (1) in an amount less than $52,500 to
an eligible entity for a fiscal year to carry
out an Even Start program that is receiving
assistance under this part or its predecessor
authority for the ninth (or any subsequent)
fiscal year.
``(C) Exception for single subgrant.--A
State may award one subgrant in each fiscal
year of sufficient size, scope, and quality to
be effective in an amount less than $75,000 if,
after awarding subgrants under paragraph (1)
for such fiscal year in accordance with
subparagraphs (A) and (B), less than $75,000 is
available to the State to award such
subgrants.''.
(h) Uses of Funds.--Section 1204 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6364) is amended--
(1) in subsection (a), by striking ``family-
centered education programs'' and inserting ``family
literacy services''; and
(2) by adding at the end the following:
``(c) Use of Funds for Family Literacy Services.--
``(1) In general.--From funds reserved under
1203(a), a State may use a portion of such funds to
assist eligible entities receiving a subgrant under
section 1203(b) in improving the quality of family
literacy services provided under Even Start programs
under this part, except that in no case may a State's
use of funds for this purpose for a fiscal year result
in a decrease from the level of activities and services
provided to program participants in the preceding year.
``(2) Priority.--In carrying out paragraph (1), a
State shall give priority to programs that were of low
quality, as evaluated based on the indicators of
program quality developed by the State under section
1210.
``(3) Technical assistance to help local programs
raise additional funds.--In carrying out paragraph (1),
a State may use the funds referred to in such paragraph
to provide technical assistance to help local programs
of demonstrated effectiveness to access and leverage
additional funds for the purpose of expanding services
and reducing waiting lists, including requesting and
applying for non-Federal resources.
``(4) Technical assistance and training.--
Assistance under paragraph (1) shall be in the form of
technical assistance and training, provided by a State
through a grant, contract, or cooperative agreement
with an entity that has experience in offering high
quality training and technical assistance to family
literacy providers.''.
(i) Program Elements.--Section 1205 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6365) is amended--
(1) by redesignating paragraphs (9) and (10) as
paragraphs (14) and (15), respectively;
(2) by redesignating paragraphs (5) through (8) as
paragraphs (6) through (9), respectively;
(3) by inserting after paragraph (4) the following:
``(5) with respect to the qualifications of staff
the cost of whose salaries are paid, in whole or in
part, with Federal funds provided under this part,
ensure that--
``(A) not later than 4 years after the date
of the enactment of the Literacy Involves
Families Together Act--
``(i) a majority of the individuals
providing academic instruction--
``(I) shall have obtained
an associate's, bachelor's, or
graduate degree in a field
related to early childhood
education, elementary or
secondary school education, or
adult education; and
``(II) if applicable, shall
meet qualifications established
by the State for early
childhood education, elementary
or secondary school education,
or adult education provided as
part of an Even Start program
or another family literacy
program;
``(ii) the individual responsible
for administration of family literacy
services under this part has received
training in the operation of a family
literacy program; and
``(iii) paraprofessionals who
provide support for academic
instruction have a high school diploma
or its recognized equivalent; and
``(B) beginning on the date of the
enactment of the Literacy Involves Families
Together Act, all new personnel hired to
provide academic instruction--
``(i) have obtained an associate's,
bachelor's, or graduate degree in a
field related to early childhood
education, elementary or secondary
school education, or adult education;
and
``(ii) if applicable, meet
qualifications established by the State
for early childhood education,
elementary or secondary school
education, or adult education provided
as part of an Even Start program or
another family literacy program;'';
(4) in paragraph (8) (as so redesignated by
paragraph (2), by striking ``or enrichment'' and
inserting ``and enrichment''.
(5) by inserting after paragraph (9) (as so
redesignated by paragraph (2)) the following:
``(10) use instructional programs based on
scientifically based reading research (as defined in
section 2252) for children and adults, to the extent
such research is available;
``(11) encourage participating families to attend
regularly and to remain in the program a sufficient
time to meet their program goals;
``(12) include reading readiness activities for
preschool children based on scientifically based
reading research (as defined in section 2252), to the
extent available, to ensure children enter school ready
to learn to read;
``(13) if applicable, promote the continuity of
family literacy to ensure that individuals retain and
improve their educational outcomes''; and
(5) in paragraph (14) (as so redesignated), by
striking ``program.'' and inserting ``program to be
used for program improvement.''.
(j) Eligible Participants.--Section 1206 of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 6366) is
amended--
(1) in subsection (a)(1)(B) by striking ``part;''
and inserting ``part, or who are attending secondary
school;''; and
(2) in subsection (b), by adding at the end the
following:
``(3) Children 8 years of age or older.--If an Even
Start program assisted under this part collaborates
with a program under part A, and funds received under
such part A program contribute to paying the cost of
providing programs under this part to children 8 years
of age or older, the Even Start program,
notwithstanding subsection (a)(2), may permit the
participation of children 8 years of age or older if
the focus of the program continues to remain on
families with young children.''.
(k) Plan.--Section 1207(c) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6367(c)) is amended--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph
(A), by inserting ``and continuous
improvement'' after ``plan of operation'';
(B) in subparagraph (A), by striking
``goals;'' and inserting ``objectives,
strategies to meet such objectives, and how
they are consistent with the program indicators
established by the State;'';
(C) in subparagraph (E), by striking
``and'' at the end;
(D) in subparagraph (F)--
(i) by striking ``Act, the Goals
2000: Educate America Act,'' and
inserting ``Act''; and
(ii) by striking the period at the
end and inserting ``; and''; and
(E) by adding at the end the following:
``(G) a description of how the plan
provides for rigorous and objective evaluation
of progress toward the program objectives
described in subparagraph (A) and for
continuing use of evaluation data for program
improvement.''; and
(2) in paragraph (2), in the matter preceding
subparagraph (A), by striking ``(1)(A)'' and inserting
``(1)''.
(l) Award of Subgrants.--Section 1208 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6368) is amended--
(1) in subsection (a)--
(A) in paragraph (1)(B)--
(i) by striking ``including a
high'' and inserting ``such as a
high''; and
(ii) by striking ``part A;'' and
inserting ``part A, a high number or
percentage of parents who have been
victims of domestic violence, or a high
number or percentage of parents who are
receiving assistance under a State
program funded under part A of title IV
of the Social Security Act (42 U.S.C.
601 et seq.);'';
(B) in paragraph (1)(F), by striking
``Federal'' and inserting ``non-Federal'';
(C) in paragraph (1)(H), by inserting
``family literacy projects and other'' before
``local educational agencies''; and
(D) in paragraph (3), in the matter
preceding subparagraph (A), by striking ``one
or more of the following individuals:'' and
inserting ``one individual with expertise in
family literacy programs, and may include other
individuals, such as one or more of the
following:''; and
(2) in subsection (b)--
(A) by striking paragraph (3) and inserting
the following:
``(3) Continuing eligibility.--In awarding subgrant
funds to continue a program under this part after the
first year, the State educational agency shall review
the progress of each eligible entity in meeting the
objectives of the program referred to in section
1207(c)(1)(A) and shall evaluate the program based on
the indicators of program quality developed by the
State under section 1210.''; and
(B) by amending paragraph (5)(B) to read as
follows:
``(B) The Federal share of any subgrant renewed
under subparagraph (A) shall be limited in accordance
with section 1204(b).''.
(m) Research.--Section 1211 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6369b) is amended--
(1) in subsection (b), by striking ``subsection
(a)'' and inserting ``subsections (a) and (b)'';
(2) by redesignating subsection (b) as subsection
(c); and
(3) by inserting after subsection (a) the
following:
``(b) Scientifically Based Research on Family Literacy.--
``(1) In general.--From amounts reserved under
section 1202(b)(2), the National Institute for
Literacy, in consultation with the Secretary, shall
carry out research that--
``(A) is scientifically based reading
research (as defined in section 2252); and
``(B) determines--
``(i) the most effective ways of
improving the literacy skills of adults
with reading difficulties; and
``(ii) how family literacy services
can best provide parents with the
knowledge and skills they need to
support their children's literacy
development.
``(2) Use of expert entity.--The National Institute
for Literacy, in consultation with the Secretary, shall
carry out the research under paragraph (1) through an
entity, including a Federal agency, that has expertise
in carrying out longitudinal studies of the development
of literacy skills in children and has developed
effective interventions to help children with reading
difficulties.''.
(n) Indicators of Program Quality.--Not later than 30 days
after the date of the enactment of this Act, the Secretary
shall notify each State that receives funds under part B of
title I of the Elementary and Secondary Education Act of 1965
that to be eligible to receive fiscal year 2001 funds under
part B, such State shall submit to the Secretary, not later
than June 30, 2001, its indicators of program quality as
described in section 1210 of the Elementary and Secondary
Education Act of 1965. A State that fails to comply with this
subsection shall be ineligible to receive funds under such part
in subsequent years unless such State submits to the Secretary,
not later than June 30 of the year in which funds are
requested, its indicators of program quality as described in
section 1210 of the Elementary and Secondary Education Act of
1965.
SEC. 1605. EDUCATION OF MIGRATORY CHILDREN.
Section 1304(b) of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 6394(b)) is amended--
(1) in paragraph (5), by striking ``and'' at the
end;
(2) in paragraph (6), by striking the period at the
end and inserting ``; and''; and
(3) by adding at the end the following:
``(7) a description of how the State will encourage
programs and projects assisted under this part to offer
family literacy services if the program or project
serves a substantial number of migratory children who
have parents who do not have a high school diploma or
its recognized equivalent or who have low levels of
literacy.''.
SEC. 1606. DEFINITIONS.
(a) In General.--Section 14101 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 8801) is amended--
(1) by redesignating paragraphs (15) through (29)
as paragraphs (16) through (30), respectively; and
(2) by inserting after paragraph (14) the
following:
``(15) Family literacy services.--The term `family
literacy services' means services provided to
participants on a voluntary basis that are of
sufficient intensity in terms of hours, and of
sufficient duration, to make sustainable changes in a
family, and that integrate all of the following
activities:
``(A) Interactive literacy activities
between parents and their children.
``(B) Training for parents regarding how to
be the primary teacher for their children and
full partners in the education of their
children.
``(C) Parent literacy training that leads
to economic self-sufficiency.
``(D) An age-appropriate education to
prepare children for success in school and life
experiences.''.
(b) Conforming Amendments.--
(1) Even start family literacy programs.--Section
1202(e) of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 6362(e)) is amended--
(A) by striking paragraph (3); and
(B) by redesignating paragraphs (4) and (5)
as paragraphs (3) and (4), respectively.
(2) Reading and literacy grants.--(A) Section 2252
of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 6661a) is amended--
(i) by striking paragraph (2); and
(ii) by redesignating paragraphs (3)
through (5) as paragraphs (2) through (4),
respectively.
(B) Section 2260 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6661i) is amendmed--
(i) in subsection (a), by striking ``and
section 1202(c)'' each place it appears, and
(ii) in subsection (b)--
(I) in paragraph (1), by inserting
``and'' after the semicolon;
(II) in paragraph (2), by striking
``; and '' and inserting a period; and
(III) by striking paragraph (3).
SEC. 1607. INDIAN EDUCATION.
(a) Early Childhood Development Program.--Section 1143 of
the Education Amendments of 1978 (25 U.S.C. 2023) is amended--
(1) in subsection (b)(1), in the matter preceding
subparagraph (A)--
(A) by striking ``(f)'' and inserting
``(g)''; and
(B) by striking ``(e))'' and inserting
``(f))'';
(2) in subsection (d)(1)--
(A) by redesignating subparagraphs (D) and
(E) as subparagraphs (E) and (F), respectively;
and
(B) by inserting after subparagraph (C) the
following:
``(D) family literacy services,'';
(3) in subsection (e), by striking ``(f),'' and
inserting ``(g),'';
(4) by redesignating subsections (e) and (f) as
subsections (f) and (g), respectively; and
(5) by inserting after subsection (d) the
following:
``(e) Family literacy programs operated under this section,
and other family literacy programs operated by the Bureau of
Indian Affairs, shall be coordinated with family literacy
programs for American Indian children under part B of title I
of the Elementary and Secondary Education Act of 1965 in order
to avoid duplication and to encourage the dissemination of
information on quality family literacy programs serving
American Indians.''.
(b) Definitions.--Section 1146 of the Education Amendments
of 1978 (25 U.S.C. 2026) is amended--
(1) by redesignating paragraphs (7) through (14) as
paragraphs (8) through (15), respectively; and
(2) by inserting after paragraph (6) the following:
``(7) the term `family literacy services' has the
meaning given such term in section 14101 of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 8801);''.
TITLE XVII--CHILDREN'S INTERNET PROTECTION
SEC. 1701. SHORT TITLE.
This title may be cited as the ``Children's Internet
Protection Act''.
SEC. 1702. DISCLAIMERS.
(a) Disclaimer Regarding Content.--Nothing in this title or
the amendments made by this title shall be construed to
prohibit a local educational agency, elementary or secondary
school, or library from blocking access on the Internet on
computers owned or operated by that agency, school, or library
to any content other than content covered by this title or the
amendments made by this title.
(b) Disclaimer Regarding Privacy.--Nothing in this title or
the amendments made by this title shall be construed to require
the tracking of Internet use by any identifiable minor or adult
user.
SEC. 1703. STUDY OF TECHNOLOGY PROTECTION MEASURES.
(a) In General.--Not later than 18 months after the date of
the enactment of this Act, the National Telecommunications and
Information Administration shall initiate a notice and comment
proceeding for purposes of--
(1) evaluating whether or not currently available
technology protection measures, including commercial
Internet blocking and filtering software, adequately
addresses the needs of educational institutions;
(2) making recommendations on how to foster the
development of measures that meet such needs; and
(3) evaluating the development and effectiveness of
local Internet safety policies that are currently in
operation after community input.
(b) Definitions.--In this section:
(1) Technology protection measure.--The term
``technology protection measure'' means a specific
technology that blocks or filters Internet access to
visual depictions that are--
(A) obscene, as that term is defined in
section 1460 of title 18, United States Code;
(B) child pornography, as that term is
defined in section 2256 of title 18, United
States Code; or
(C) harmful to minors.
(2) Harmful to minors.--The term ``harmful to
minors'' means any picture, image, graphic image file,
or other visual depiction that--
(A) taken as a whole and with respect to
minors, appeals to a prurient interest in
nudity, sex, or excretion;
(B) depicts, describes, or represents, in a
patently offensive way with respect to what is
suitable for minors, an actual or simulated
sexual act or sexual contact, actual or
simulated normal or perverted sexual acts, or a
lewd exhibition of the genitals; and
(C) taken as a whole, lacks serious
literary, artistic, political, or scientific
value as to minors.
(3) Sexual act; sexual contact.--The terms ``sexual
act'' and ``sexual contact'' have the meanings given
such terms in section 2246 of title 18, United States
Code.
Subtitle A--Federal Funding for Educational Institution Computers
SEC. 1711. LIMITATION ON AVAILABILITY OF CERTAIN FUNDS FOR SCHOOLS.
Title III of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 6801 et seq.) is amended by adding at the end
the following:
``PART F--LIMITATION ON AVAILABILITY OF CERTAIN FUNDS FOR SCHOOLS
``SEC. 3601. LIMITATION ON AVAILABILITY OF CERTAIN FUNDS FOR SCHOOLS.
``(a) Internet Safety.--
``(1) In general.--No funds made available under
this title to a local educational agency for an
elementary or secondary school that does not receive
services at discount rates under section 254(h)(5) of
the Communications Act of 1934, as added by section
1721 of Children's Internet Protection Act, may be used
to purchase computers used to access the Internet, or
to pay for direct costs associated with accessing the
Internet, for such school unless the school, school
board, local educational agency, or other authority
with responsibility for administration of such school
both--
``(A)(i) has in place a policy of Internet
safety for minors that includes the operation
of a technology protection measure with respect
to any of its computers with Internet access
that protects against access through such
computers to visual depictions that are--
``(I) obscene;
``(II) child pornography; or
``(III) harmful to minors; and
``(ii) is enforcing the operation of such
technology protection measure during any use of
such computers by minors; and
``(B)(i) has in place a policy of Internet
safety that includes the operation of a
technology protection measure with respect to
any of its computers with Internet access that
protects against access through such computers
to visual depictions that are--
``(I) obscene; or
``(II) child pornography; and
``(ii) is enforcing the operation of such
technology protection measure during any use of
such computers.
``(2) Timing and applicability of implementation.--
``(A) In general.--The local educational
agency with responsibility for a school covered
by paragraph (1) shall certify the compliance
of such school with the requirements of
paragraph (1) as part of the application
process for the next program funding year under
this Act following the effective date of this
section, and for each subsequent program
funding year thereafter.
``(B) Process.--
``(i) Schools with internet safety
policies and technology protection
measures in place.--A local educational
agency with responsibility for a school
covered by paragraph (1) that has in
place an Internet safety policy meeting
the requirements of paragraph (1) shall
certify its compliance with paragraph
(1) during each annual program
application cycle under this Act.
``(ii) Schools without internet
safety policies and technology
protection measures in place.--A local
educational agency with responsibility
for a school covered by paragraph (1)
that does not have in place an Internet
safety policy meeting the requirements
of paragraph (1)--
``(I) for the first program
year after the effective date
of this section in which the
local educational agency is
applying for funds for such
school under this Act, shall
certify that it is undertaking
such actions, including any
necessary procurement
procedures, to put in place an
Internet safety policy that
meets such requirements; and
``(II) for the second
program year after the
effective date of this section
in which the local educational
agency is applying for funds
for such school under this Act,
shall certify that such school
is in compliance with such
requirements.
Any school covered by paragraph (1) for
which the local educational agency
concerned is unable to certify
compliance with such requirements in
such second program year shall be
ineligible for all funding under this
title for such second program year and
all subsequent program years until such
time as such school comes into
compliance with such requirements.
``(iii) Waivers.--Any school
subject to a certification under clause
(ii)(II) for which the local
educational agency concerned cannot
make the certification otherwise
required by that clause may seek a
waiver of that clause if State or local
procurement rules or regulations or
competitive bidding requirements
prevent the making of the certification
otherwise required by that clause. The
local educational agency concerned
shall notify the Secretary of the
applicability of that clause to the
school. Such notice shall certify that
the school will be brought into
compliance with the requirements in
paragraph (1) before the start of the
third program year after the effective
date of this section in which the
school is applying for funds under this
title.
``(3) Disabling during certain use.--An
administrator, supervisor, or person authorized by the
responsible authority under paragraph (1) may disable
the technology protection measure concerned to enable
access for bona fide research or other lawful purposes.
``(4) Noncompliance.--
``(A) Use of general education provisions
act remedies.--Whenever the Secretary has
reason to believe that any recipient of funds
under this title is failing to comply
substantially with the requirements of this
subsection, the Secretary may--
``(i) withhold further payments to
the recipient under this title,
``(ii) issue a complaint to compel
compliance of the recipient through a
cease and desist order, or
``(iii) enter into a compliance
agreement with a recipient to bring it
into compliance with such requirements,
in same manner as the Secretary is authorized
to take such actions under sections 455, 456,
and 457, respectively, of the General Education
Provisions Act (20 U.S.C. 1234d).
``(B) Recovery of funds prohibited.--The
actions authorized by subparagraph (A) are the
exclusive remedies available with respect to
the failure of a school to comply substantially
with a provision of this subsection, and the
Secretary shall not seek a recovery of funds
from the recipient for such failure.
``(C) Recommencement of payments.--Whenever
the Secretary determines (whether by
certification or other appropriate evidence)
that a recipient of funds who is subject to the
withholding of payments under subparagraph
(A)(i) has cured the failure providing the
basis for the withholding of payments, the
Secretary shall cease the withholding of
payments to the recipient under that
subparagraph.
``(5) Definitions.--In this section:
``(A) Computer.--The term `computer'
includes any hardware, software, or other
technology attached or connected to, installed
in, or otherwise used in connection with a
computer.
``(B) Access to internet.--A computer shall
be considered to have access to the Internet if
such computer is equipped with a modem or is
connected to a computer network which has
access to the Internet.
``(C) Acquisition or operation.--A
elementary or secondary school shall be
considered to have received funds under this
title for the acquisition or operation of any
computer if such funds are used in any manner,
directly or indirectly--
``(i) to purchase, lease, or
otherwise acquire or obtain the use of
such computer; or
``(ii) to obtain services,
supplies, software, or other actions or
materials to support, or in connection
with, the operation of such computer.
``(D) Minor.--The term `minor' means an
individual who has not attained the age of 17.
``(E) Child pornography.--The term `child
pornography' has the meaning given such term in
section 2256 of title 18, United States Code.
``(F) Harmful to minors.--The term `harmful
to minors' means any picture, image, graphic
image file, or other visual depiction that--
``(i) taken as a whole and with
respect to minors, appeals to a
prurient interest in nudity, sex, or
excretion;
``(ii) depicts, describes, or
represents, in a patently offensive way
with respect to what is suitable for
minors, an actual or simulated sexual
act or sexual contact, actual or
simulated normal or perverted sexual
acts, or a lewd exhibition of the
genitals; and
``(iii) taken as a whole, lacks
serious literary, artistic, political,
or scientific value as to minors.
``(G) Obscene.--The term `obscene' has the
meaning given such term in section 1460 of
title 18, United States Code.
``(H) Sexual act; sexual contact.--The
terms `sexual act' and `sexual contact' have
the meanings given such terms in section 2246
of title 18, United States Code.
``(b) Effective Date.--This section shall take effect 120
days after the date of the enactment of the Children's Internet
Protection Act.
``(c) Separability.--If any provision of this section is
held invalid, the remainder of this section shall not be
affected thereby.''.
SEC. 1712. LIMITATION ON AVAILABILITY OF CERTAIN FUNDS FOR LIBRARIES.
(a) Amendment.--Section 224 of the Museum and Library
Services Act (20 U.S.C. 9134(b)) is amended--
(1) in subsection (b)--
(A) by redesignating paragraph (6) as
paragraph (7); and
(B) by inserting after paragraph (5) the
following new paragraph:
``(6) provide assurances that the State will comply
with subsection (f); and''; and
(2) by adding at the end the following new
subsection:
``(f) Internet Safety.--
``(1) In general.--No funds made available under
this Act for a library described in section 213(2)(A)
or (B) that does not receive services at discount rates
under section 254(h)(6) of the Communications Act of
1934, as added by section 1721 of this Children's
Internet Protection Act, may be used to purchase
computers used to access the Internet, or to pay for
direct costs associated with accessing the Internet,
for such library unless--
``(A) such library--
``(i) has in place a policy of
Internet safety for minors that
includes the operation of a technology
protection measure with respect to any
of its computers with Internet access
that protects against access through
such computers to visual depictions
that are--
``(I) obscene;
``(II) child pornography;
or
``(III) harmful to minors;
and
``(ii) is enforcing the operation
of such technology protection measure
during any use of such computers by
minors; and
``(B) such library--
``(i) has in place a policy of
Internet safety that includes the
operation of a technology protection
measure with respect to any of its
computers with Internet access that
protects against access through such
computers to visual depictions that
are--
``(I) obscene; or
``(II) child pornography;
and
``(ii) is enforcing the operation
of such technology protection measure
during any use of such computers.
``(2) Access to other materials.--Nothing in this
subsection shall be construed to prohibit a library
from limiting Internet access to or otherwise
protecting against materials other than those referred
to in subclauses (I), (II), and (III) of paragraph
(1)(A)(i).
``(3) Disabling during certain use.--An
administrator, supervisor, or other authority may
disable a technology protection measure under paragraph
(1) to enable access for bona fide research or other
lawful purposes.
``(4) Timing and applicability of implementation.--
``(A) In general.--A library covered by
paragraph (1) shall certify the compliance of
such library with the requirements of paragraph
(1) as part of the application process for the
next program funding year under this Act
following the effective date of this
subsection, and for each subsequent program
funding year thereafter.
``(B) Process.--
``(i) Libraries with internet
safety policies and technology
protection measures in place.--A
library covered by paragraph (1) that
has in place an Internet safety policy
meeting the requirements of paragraph
(1) shall certify its compliance with
paragraph (1) during each annual
program application cycle under this
Act.
``(ii) Libraries without internet
safety policies and technology
protection measures in place.--A
library covered by paragraph (1) that
does not have in place an Internet
safety policy meeting the requirements
of paragraph (1)--
``(I) for the first program
year after the effective date
of this subsection in which the
library applies for funds under
this Act, shall certify that it
is undertaking such actions,
including any necessary
procurement procedures, to put
in place an Internet safety
policy that meets such
requirements; and
``(II) for the second
program year after the
effective date of this
subsection in which the library
applies for funds under this
Act, shall certify that such
library is in compliance with
such requirements.
Any library covered by paragraph (1)
that is unable to certify compliance
with such requirements in such second
program year shall be ineligible for
all funding under this Act for such
second program year and all subsequent
program years until such time as such
library comes into compliance with such
requirements.
``(iii) Waivers.--Any library
subject to a certification under clause
(ii)(II) that cannot make the
certification otherwise required by
that clause may seek a waiver of that
clause if State or local procurement
rules or regulations or competitive
bidding requirements prevent the making
of the certification otherwise required
by that clause. The library shall
notify the Director of the Institute of
Museum and Library Services of the
applicability of that clause to the
library. Such notice shall certify that
the library will comply with the
requirements in paragraph (1) before
the start of the third program year
after the effective date of this
subsection for which the library is
applying for funds under this Act.
``(5) Noncompliance.--
``(A) Use of general education provisions
act remedies.--Whenever the Director of the
Institute of Museum and Library Services has
reason to believe that any recipient of funds
this Act is failing to comply substantially
with the requirements of this subsection, the
Director may--
``(i) withhold further payments to
the recipient under this Act,
``(ii) issue a complaint to compel
compliance of the recipient through a
cease and desist order, or
``(iii) enter into a compliance
agreement with a recipient to bring it
into compliance with such requirements.
``(B) Recovery of funds prohibited.--The
actions authorized by subparagraph (A) are the
exclusive remedies available with respect to
the failure of a library to comply
substantially with a provision of this
subsection, and the Director shall not seek a
recovery of funds from the recipient for such
failure.
``(C) Recommencement of payments.--Whenever
the Director determines (whether by
certification or other appropriate evidence)
that a recipient of funds who is subject to the
withholding of payments under subparagraph
(A)(i) has cured the failure providing the
basis for the withholding of payments, the
Director shall cease the withholding of
payments to the recipient under that
subparagraph.
``(6) Separability.--If any provision of this
subsection is held invalid, the remainder of this
subsection shall not be affected thereby.
``(7) Definitions.--In this section:
``(A) Child pornography.--The term `child
pornography' has the meaning given such term in
section 2256 of title 18, United States Code.
``(B) Harmful to minors.--The term `harmful
to minors' means any picture, image, graphic
image file, or other visual depiction that--
``(i) taken as a whole and with
respect to minors, appeals to a
prurient interest in nudity, sex, or
excretion;
``(ii) depicts, describes, or
represents, in a patently offensive way
with respect to what is suitable for
minors, an actual or simulated sexual
act or sexual contact, actual or
simulated normal or perverted sexual
acts, or a lewd exhibition of the
genitals; and
``(iii) taken as a whole, lacks
serious literary, artistic, political,
or scientific value as to minors.
``(C) Minor.--The term `minor' means an
individual who has not attained the age of 17.
``(D) Obscene.--The term `obscene' has the
meaning given such term in section 1460 of
title 18, United States Code.
``(E) Sexual act; sexual contact.--The
terms `sexual act' and `sexual contact' have
the meanings given such terms in section 2246
of title 18, United States Code.''.
(b) Effective Date.--The amendment made by this section
shall take effect 120 days after the date of the enactment of
this Act.
Subtitle B--Universal Service Discounts
SEC. 1721. REQUIREMENT FOR SCHOOLS AND LIBRARIES TO ENFORCE INTERNET
SAFETY POLICIES WITH TECHNOLOGY PROTECTION MEASURES
FOR COMPUTERS WITH INTERNET ACCESS AS CONDITION OF
UNIVERSAL SERVICE DISCOUNTS.
(a) Schools.--Section 254(h) of the Communications Act of
1934 (47 U.S.C. 254(h)) is amended--
(1) by redesignating paragraph (5) as paragraph
(7); and
(2) by inserting after paragraph (4) the following
new paragraph (5):
``(5) Requirements for certain schools with
computers having internet access.--
``(A) Internet safety.--
``(i) In general.--Except as
provided in clause (ii), an elementary
or secondary school having computers
with Internet access may not receive
services at discount rates under
paragraph (1)(B) unless the school,
school board, local educational agency,
or other authority with responsibility
for administration of the school--
``(I) submits to the
Commission the certifications
described in subparagraphs (B)
and (C);
``(II) submits to the
Commission a certification that
an Internet safety policy has
been adopted and implemented
for the school under subsection
(l); and
``(III) ensures the use of
such computers in accordance
with the certifications.
``(ii) Applicability.--The
prohibition in clause (i) shall not
apply with respect to a school that
receives services at discount rates
under paragraph (1)(B) only for
purposes other than the provision of
Internet access, Internet service, or
internal connections.
``(iii) Public notice; hearing.--An
elementary or secondary school
described in clause (i), or the school
board, local educational agency, or
other authority with responsibility for
administration of the school, shall
provide reasonable public notice and
hold at least 1 public hearing or
meeting to address the proposed
Internet safety policy. In the case of
an elementary or secondary school other
than an elementary or secondary school
as defined in section 14101 of the
Elementary and Secondary Education Act
of 1965 (20 U.S.C. 8801), the notice
and hearing required by this clause may
be limited to those members of the
public with a relationship to the
school.
``(B) Certification with respect to
minors.--A certification under this
subparagraph is a certification that the
school, school board, local educational agency,
or other authority with responsibility for
administration of the school--
``(i) is enforcing a policy of
Internet safety for minors that
includes monitoring the online
activities of minors and the operation
of a technology protection measure with
respect to any of its computers with
Internet access that protects against
access through such computers to visual
depictions that are--
``(I) obscene;
``(II) child pornography;
or
``(III) harmful to minors;
and
``(ii) is enforcing the operation
of such technology protection measure
during any use of such computers by
minors.
``(C) Certification with respect to
adults.--A certification under this paragraph
is a certification that the school, school
board, local educational agency, or other
authority with responsibility for
administration of the school--
``(i) is enforcing a policy of
Internet safety that includes the
operation of a technology protection
measure with respect to any of its
computers with Internet access that
protects against access through such
computers to visual depictions that
are--
``(I) obscene; or
``(II) child pornography;
and
``(ii) is enforcing the operation
of such technology protection measure
during any use of such computers.
``(D) Disabling during adult use.--An
administrator, supervisor, or other person
authorized by the certifying authority under
subparagraph (A)(i) may disable the technology
protection measure concerned, during use by an
adult, to enable access for bona fide research
or other lawful purpose.
``(E) Timing of implementation.--
``(i) In general.--Subject to
clause (ii) in the case of any school
covered by this paragraph as of the
effective date of this paragraph under
section 1721(h) of the Children's
Internet Protection Act, the
certification under subparagraphs (B)
and (C) shall be made--
``(I) with respect to the
first program funding year
under this subsection following
such effective date, not later
than 120 days after the
beginning of such program
funding year; and
``(II) with respect to any
subsequent program funding
year, as part of the
application process for such
program funding year.
``(ii) Process.--
``(I) Schools with internet
safety policy and technology
protection measures in place.--
A school covered by clause (i)
that has in place an Internet
safety policy and technology
protection measures meeting the
requirements necessary for
certification under
subparagraphs (B) and (C) shall
certify its compliance with
subparagraphs (B) and (C)
during each annual program
application cycle under this
subsection, except that with
respect to the first program
funding year after the
effective date of this
paragraph under section 1721(h)
of the Children's Internet
Protection Act, the
certifications shall be made
not later than 120 days after
the beginning of such first
program funding year.
``(II) Schools without
internet safety policy and
technology protection measures
in place.--A school covered by
clause (i) that does not have
in place an Internet safety
policy and technology
protection measures meeting the
requirements necessary for
certification under
subparagraphs (B) and (C)--
``(aa) for the
first program year
after the effective
date of this subsection
in which it is applying
for funds under this
subsection, shall
certify that it is
undertaking such
actions, including any
necessary procurement
procedures, to put in
place an Internet
safety policy and
technology protection
measures meeting the
requirements necessary
for certification under
subparagraphs (B) and
(C); and
``(bb) for the
second program year
after the effective
date of this subsection
in which it is applying
for funds under this
subsection, shall
certify that it is in
compliance with
subparagraphs (B) and
(C).
Any school that is unable to
certify compliance with such
requirements in such second
program year shall be
ineligible for services at
discount rates or funding in
lieu of services at such rates
under this subsection for such
second year and all subsequent
program years under this
subsection, until such time as
such school comes into
compliance with this paragraph.
``(III) Waivers.--Any
school subject to subclause
(II) that cannot come into
compliance with subparagraphs
(B) and (C) in such second year
program may seek a waiver of
subclause (II)(bb) if State or
local procurement rules or
regulations or competitive
bidding requirements prevent
the making of the certification
otherwise required by such
subclause. A school, school
board, local educational
agency, or other authority with
responsibility for
administration of the school
shall notify the Commission of
the applicability of such
subclause to the school. Such
notice shall certify that the
school in question will be
brought into compliance before
the start of the third program
year after the effective date
of this subsection in which the
school is applying for funds
under this subsection.
``(F) Noncompliance.--
``(i) Failure to submit
certification.--Any school that
knowingly fails to comply with the
application guidelines regarding the
annual submission of certification
required by this paragraph shall not be
eligible for services at discount rates
or funding in lieu of services at such
rates under this subsection.
``(ii) Failure to comply with
certification.--Any school that
knowingly fails to ensure the use of
its computers in accordance with a
certification under subparagraphs (B)
and (C) shall reimburse any funds and
discounts received under this
subsection for the period covered by
such certification.
``(iii) Remedy of noncompliance.--
``(I) Failure to submit.--A
school that has failed to
submit a certification under
clause (i) may remedy the
failure by submitting the
certification to which the
failure relates. Upon submittal
of such certification, the
school shall be eligible for
services at discount rates
under this subsection.
``(II) Failure to comply.--
A school that has failed to
comply with a certification as
described in clause (ii) may
remedy the failure by ensuring
the use of its computers in
accordance with such
certification. Upon submittal
to the Commission of a
certification or other
appropriate evidence of such
remedy, the school shall be
eligible for services at
discount rates under this
subsection.''.
(b) Libraries.--Such section 254(h) is further amended by
inserting after paragraph (5), as amended by subsection (a) of
this section, the following new paragraph:
``(6) Requirements for certain libraries with
computers having internet access.--
``(A) Internet safety.--
``(i) In general.--Except as
provided in clause (ii), a library
having one or more computers with
Internet access may not receive
services at discount rates under
paragraph (1)(B) unless the library--
``(I) submits to the
Commission the certifications
described in subparagraphs (B)
and (C); and
``(II) submits to the
Commission a certification that
an Internet safety policy has
been adopted and implemented
for the library under
subsection (l); and
``(III) ensures the use of
such computers in accordance
with the certifications.
``(ii) Applicability.--The
prohibition in clause (i) shall not
apply with respect to a library that
receives services at discount rates
under paragraph (1)(B) only for
purposes other than the provision of
Internet access, Internet service, or
internal connections.
``(iii) Public notice; hearing.--A
library described in clause (i) shall
provide reasonable public notice and
hold at least 1 public hearing or
meeting to address the proposed
Internet safety policy.
``(B) Certification with respect to
minors.--A certification under this
subparagraph is a certification that the
library--
``(i) is enforcing a policy of
Internet safety that includes the
operation of a technology protection
measure with respect to any of its
computers with Internet access that
protects against access through such
computers to visual depictions that
are--
``(I) obscene;
``(II) child pornography;
or
``(III) harmful to minors;
and
``(ii) is enforcing the operation
of such technology protection measure
during any use of such computers by
minors.
``(C) Certification with respect to
adults.--A certification under this paragraph
is a certification that the library--
``(i) is enforcing a policy of
Internet safety that includes the
operation of a technology protection
measure with respect to any of its
computers with Internet access that
protects against access through such
computers to visual depictions that
are--
``(I) obscene; or
``(II) child pornography;
and
``(ii) is enforcing the operation
of such technology protection measure
during any use of such computers.
``(D) Disabling during adult use.--An
administrator, supervisor, or other person
authorized by the certifying authority under
subparagraph (A)(i) may disable the technology
protection measure concerned, during use by an
adult, to enable access for bona fide research
or other lawful purpose.
``(E) Timing of implementation.--
``(i) In general.--Subject to
clause (ii) in the case of any library
covered by this paragraph as of the
effective date of this paragraph under
section 1721(h) of the Children's
Internet Protection Act, the
certification under subparagraphs (B)
and (C) shall be made--
``(I) with respect to the
first program funding year
under this subsection following
such effective date, not later
than 120 days after the
beginning of such program
funding year; and
``(II) with respect to any
subsequent program funding
year, as part of the
application process for such
program funding year.
``(ii) Process.--
``(I) Libraries with
internet safety policy and
technology protection measures
in place.--A library covered by
clause (i) that has in place an
Internet safety policy and
technology protection measures
meeting the requirements
necessary for certification
under subparagraphs (B) and (C)
shall certify its compliance
with subparagraphs (B) and (C)
during each annual program
application cycle under this
subsection, except that with
respect to the first program
funding year after the
effective date of this
paragraph under section 1721(h)
of the Children's Internet
Protection Act, the
certifications shall be made
not later than 120 days after
the beginning of such first
program funding year.
``(II) Libraries without
internet safety policy and
technology protection measures
in place.--A library covered by
clause (i) that does not have
in place an Internet safety
policy and technology
protection measures meeting the
requirements necessary for
certification under
subparagraphs (B) and (C)--
``(aa) for the
first program year
after the effective
date of this subsection
in which it is applying
for funds under this
subsection, shall
certify that it is
undertaking such
actions, including any
necessary procurement
procedures, to put in
place an Internet
safety policy and
technology protection
measures meeting the
requirements necessary
for certification under
subparagraphs (B) and
(C); and
``(bb) for the
second program year
after the effective
date of this subsection
in which it is applying
for funds under this
subsection, shall
certify that it is in
compliance with
subparagraphs (B) and
(C).
Any library that is unable to
certify compliance with such
requirements in such second
program year shall be
ineligible for services at
discount rates or funding in
lieu of services at such rates
under this subsection for such
second year and all subsequent
program years under this
subsection, until such time as
such library comes into
compliance with this paragraph.
``(III) Waivers.--Any
library subject to subclause
(II) that cannot come into
compliance with subparagraphs
(B) and (C) in such second year
may seek a waiver of subclause
(II)(bb) if State or local
procurement rules or
regulations or competitive
bidding requirements prevent
the making of the certification
otherwise required by such
subclause. A library, library
board, or other authority with
responsibility for
administration of the library
shall notify the Commission of
the applicability of such
subclause to the library. Such
notice shall certify that the
library in question will be
brought into compliance before
the start of the third program
year after the effective date
of this subsection in which the
library is applying for funds
under this subsection.
``(F) Noncompliance.--
``(i) Failure to submit
certification.--Any library that
knowingly fails to comply with the
application guidelines regarding the
annual submission of certification
required by this paragraph shall not be
eligible for services at discount rates
or funding in lieu of services at such
rates under this subsection.
``(ii) Failure to comply with
certification.--Any library that
knowingly fails to ensure the use of
its computers in accordance with a
certification under subparagraphs (B)
and (C) shall reimburse all funds and
discounts received under this
subsection for the period covered by
such certification.
``(iii) Remedy of noncompliance.--
``(I) Failure to submit.--A
library that has failed to
submit a certification under
clause (i) may remedy the
failure by submitting the
certification to which the
failure relates. Upon submittal
of such certification, the
library shall be eligible for
services at discount rates
under this subsection.
``(II) Failure to comply.--
A library that has failed to
comply with a certification as
described in clause (ii) may
remedy the failure by ensuring
the use of its computers in
accordance with such
certification. Upon submittal
to the Commission of a
certification or other
appropriate evidence of such
remedy, the library shall be
eligible for services at
discount rates under this
subsection.''.
(c) Definitions.--Paragraph (7) of such section, as
redesignated by subsection (a)(1) of this section, is amended
by adding at the end the following:
``(D) Minor.--The term `minor' means any
individual who has not attained the age of 17
years.
``(E) Obscene.--The term `obscene' has the
meaning given such term in section 1460 of
title 18, United States Code.
``(F) Child pornography.--The term `child
pornography' has the meaning given such term in
section 2256 of title 18, United States Code.
``(G) Harmful to minors.--The term `harmful
to minors' means any picture, image, graphic
image file, or other visual depiction that--
``(i) taken as a whole and with
respect to minors, appeals to a
prurient interest in nudity, sex, or
excretion;
``(ii) depicts, describes, or
represents, in a patently offensive way
with respect to what is suitable for
minors, an actual or simulated sexual
act or sexual contact, actual or
simulated normal or perverted sexual
acts, or a lewd exhibition of the
genitals; and
``(iii) taken as a whole, lacks
serious literary, artistic, political,
or scientific value as to minors.
``(H) Sexual act; sexual contact.--The
terms `sexual act' and `sexual contact' have
the meanings given such terms in section 2246
of title 18, United States Code.
``(I) Technology protection measure.--The
term `technology protection measure' means a
specific technology that blocks or filters
Internet access to the material covered by a
certification under paragraph (5) or (6) to
which such certification relates.''.
(d) Conforming Amendment.--Paragraph (4) of such section is
amended by striking ``paragraph (5)(A)'' and inserting
``paragraph (7)(A)''.
(e) Separability.--If any provision of paragraph (5) or (6)
of section 254(h) of the Communications Act of 1934, as amended
by this section, or the application thereof to any person or
circumstance is held invalid, the remainder of such paragraph
and the application of such paragraph to other persons or
circumstances shall not be affected thereby.
(f) Regulations.--
(1) Requirement.--The Federal Communications
Commission shall prescribe regulations for purposes of
administering the provisions of paragraphs (5) and (6)
of section 254(h) of the Communications Act of 1934, as
amended by this section.
(2) Deadline.--Notwithstanding any other provision
of law, the Commission shall prescribe regulations
under paragraph (1) so as to ensure that such
regulations take effect 120 days after the date of the
enactment of this Act.
(g) Availability of Certain Funds for Acquisition of
Technology Protection Measures.
(1) In general.--Notwithstanding any other
provision of law, funds available under section 3134 or
part A of title VI of the Elementary and Secondary
Education Act of 1965, or under section 231 of the
Library Services and Technology Act, may be used for
the purchase or acquisition of technology protection
measures that are necessary to meet the requirements of
this title and the amendments made by this title. No
other sources of funds for the purchase or acquisition
of such measures are authorized by this title, or the
amendments made by this title.
(2) Technology protection measure defined.--In this
section, the term ``technology protection measure'' has
the meaning given that term in section 1703.
(h) Effective Date.--The amendments made by this section
shall take effect 120 days after the date of the enactment of
this Act.
Subtitle C--Neighborhood Children's Internet Protection
SEC. 1731. SHORT TITLE.
This subtitle may be cited as the ``Neighborhood Children's
Internet Protection Act''.
SEC. 1732. INTERNET SAFETY POLICY REQUIRED.
Section 254 of the Communications Act of 1934 (47 U.S.C.
254) is amended by adding at the end the following:
``(l) Internet Safety Policy Requirement for Schools and
Libraries.--
``(1) In general.--In carrying out its
responsibilities under subsection (h), each school or
library to which subsection (h) applies shall--
``(A) adopt and implement an Internet
safety policy that addresses--
``(i) access by minors to
inappropriate matter on the Internet
and World Wide Web;
``(ii) the safety and security of
minors when using electronic mail, chat
rooms, and other forms of direct
electronic communications;
``(iii) unauthorized access,
including so-called `hacking', and
other unlawful activities by minors
online;
``(iv) unauthorized disclosure,
use, and dissemination of personal
identification information regarding
minors; and
``(v) measures designed to restrict
minors' access to materials harmful to
minors; and
``(B) provide reasonable public notice and
hold at least one public hearing or meeting to
address the proposed Internet safety policy.
``(2) Local determination of content.--A
determination regarding what matter is inappropriate
for minors shall be made by the school board, local
educational agency, library, or other authority
responsible for making the determination. No agency or
instrumentality of the United States Government may--
``(A) establish criteria for making such
determination;
``(B) review the determination made by the
certifying school, school board, local
educational agency, library, or other
authority; or
``(C) consider the criteria employed by the
certifying school, school board, local
educational agency, library, or other authority
in the administration of subsection (h)(1)(B).
``(3) Availability for review.--Each Internet
safety policy adopted under this subsection shall be
made available to the Commission, upon request of the
Commission, by the school, school board, local
educational agency, library, or other authority
responsible for adopting such Internet safety policy
for purposes of the review of such Internet safety
policy by the Commission.
``(4) Effective date.--This subsection shall apply
with respect to schools and libraries on or after the
date that is 120 days after the date of the enactment
of the Children's Internet Protection Act.''.
SEC. 1733. IMPLEMENTING REGULATIONS.
Not later than 120 days after the date of enactment of this
Act, the Federal Communications Commission shall prescribe
regulations for purposes of section 254(l) of the
Communications Act of 1934, as added by section 1732 of this
Act.
Subtitle D--Expedited Review
SEC. 1741. EXPEDITED REVIEW.
(a) Three-Judge District Court Hearing.--Notwithstanding
any other provision of law, any civil action challenging the
constitutionality, on its face, of this title or any amendment
made by this title, or any provision thereof, shall be heard by
a district court of 3 judges convened pursuant to the
provisions of section 2284 of title 28, United States Code.
(b) Appellate Review.--Notwithstanding any other provision
of law, an interlocutory or final judgment, decree, or order of
the court of 3 judges in an action under subsection (a) holding
this title or an amendment made by this title, or any provision
thereof, unconstitutional shall be reviewable as a matter of
right by direct appeal to the Supreme Court. Any such appeal
shall be filed not more than 20 days after entry of such
judgment, decree, or order.
This Act may be cited as the ``Miscellaneous
Appropriations Act, 2001''.
MISCELLANEOUS APPROPRIATIONS
Following is explanatory language on H.R. 5666, as
introduced on December 15, 2000.
The conferees on H.R. 4577 agree with the matter included
in H.R. 5666 and enacted in this conference report by reference
and the following description of it.
DIVISION A
CHAPTER 1
General Provisions--This Chapter
The conference agreement includes language which:
provides that not more than $100,000 shall be available for
guarantees of private sector rural electrification and
telecommunications loans; clarifies that a housing
demonstration program is to be carried out in Mississippi and
Alaska; clarifies that the Initiative for Future Agriculture
and Food Systems shall be used to make grants only to colleges,
universities, or research foundations maintained by a college
or university; makes a technical correction to the Rural
Community Advancement Program to specify that funds may be used
in counties which have received an emergency designation after
January 1, 2000; provides certain transfers under the livestock
assistance program; clarifies eligibility for quality losses;
clarifies that Emergency Conservation Program funds previously
appropriated for the Cerro Grande fire can be made available
for drought benefits; clarifies a provision regarding payments
to producers that suffered losses because of the insolvency of
an agriculture cooperative in the State of California; provides
that Burley, Flue-cured, and Cigar Binder Type 54-55 tobacco
will be treated identically for loan forfeiture purposes; and
establishes an effective date for a provision of the
Agricultural Risk Protection Act of 2000 regarding limitations
on Burley tobacco quota adjustments. The effective date of
these provisions is the date of enactment of the Agriculture,
Rural Development, Food and Drug Administration, and Related
Agencies Appropriations Act, 2001.
The conference agreement includes a section maintaining
the eligibility of certain rural areas for U.S. Department of
Agriculture rural housing programs.
The conference agreement includes a section that
authorizes a study on the feasibility of including ethanol,
biodiesel, and other bio-based fuels as part of the Strategic
Petroleum Reserve.
The conference agreement includes a section that makes
the City of Wilson, NC, eligible for certain U.S. Department of
Agriculture rural development programs.
The conference agreement includes a section that provides
$26,000,000 for the Environmental Quality Incentives Program.
The conference agreement includes a section regarding the
operation of the ongoing bovine tuberculosis eradication
program. The intent of the conferees is that funding for this
program, which is financed through the Commodity Credit
Corporation, shall provide a total of not less than
$60,259,000.
The conferees expect that, in developing any consumer
guidance regarding mercury exposure from seafood consumption,
the Department of Health and Human Services will rely upon the
results of more than one relevant study. The Secretary is
directed to submit a report to the Committees on Appropriations
by February 28, 2001, on any actions regarding a consumer
advisory on this subject.
The conferees urge USDA's Animal and Plant Health
Inspection Service (APHIS) to uphold approved sanitary and
phytosanitary measures in relation to shipping and cargo
materials returning to the United States as a result of trade
with Cuba. The conferees urge APHIS to exercise vigilance in
the adoption of internal measures to insure that returning
containers and shipping materials do not present sanitary or
phytosanitary risks to American agriculture or the environment,
and to explore the formation of a bilateral cooperative
agreement with Cuba to provide for pre-departure inspections of
containers leaving Cuba. The conferees also encourage APHIS to
work in cooperation with the Departments of Agriculture of the
states which will serve as the ports of reentry for these
shipping materials and containers.
The conference agreement includes a section that makes
funding provided in Section 211(b) of the Agriculture Risk
Protection Act of 2000 (P.L. 106-224) available for the
Farmland Protection Program.
The conference agreement provides an additional $500,000
to hire additional attorneys for the Trade Practices Division
of the Office of the General Counsel to enforce the Packers and
Stockyards Act.
The conference agreement provides an additional $200,000
for the Grain Inspection, Packers and Stockyards Administration
to establish a hog contract library.
The conference agreement includes language making
available funds of the Emergency Watershed Program to
accelerate completion of the Hamakua Ditch project in Hawaii.
CHAPTER 2
DEPARTMENT OF JUSTICE
Federal Prison System
Salaries and Expenses
The conference agreement includes $500,000 for the
National Institute of Corrections (NIC) for a comprehensive
assessment of medical care and incidents of inmate mortality in
the Wisconsin State Prison System.
Office of Justice Programs
Justice Assistance
The conference agreement includes $300,000 to expand the
collection of data on prisoner deaths while in law enforcement
custody.
Community Oriented Policing Services
The conference agreement includes $3,080,000 under this
heading, of which $1,880,000 is for a grant to the Pasadena,
California, Police Department for equipment; $200,000 is for a
grant to the City of Signal Hill, California, for equipment and
technology for an emergency operations center; and of which
$1,000,000 is for a grant to the State of Alabama Department of
Forensic Sciences for equipment.
Juvenile Justice Programs
The conference agreement includes $1,000,000 for a grant
to Mobile County, Alabama, for a juvenile court network
program.
General Provisions
Sec. 201. The conference agreement includes a provision
making technical changes to Chapter 2 of title II of division B
of Public Law 106-246.
Sec. 202. The conference agreement includes a provision
appropriating $10,000,000 to the State of Texas and $2,000,000
to the State of Arizona to reimburse county and municipal
governments only for Federal costs associated with the handling
and processing of illegal immigration and drug and alien
smuggling cases.
Sec. 203. The conference agreement includes $9,000,000 to
establishment of the Strom Thurmond Boys & Girls Club National
Training Center.
Sec. 204. The conference agreement includes $500,000 for
the New Hampshire Department of Safety to investigate and
support the prosecution of violations of federal trucking laws.
Sec. 205. The conference agreement includes $4,000,000
for the State of South Dakota to establish a regional radio
system.
DEPARTMENT OF COMMERCE
Economic and Statistical Analysis
salaries and expenses
The conference agreement includes $200,000 for the
establishment of satellite accounts for the travel and tourism
industry.
National Oceanic and Atmospheric Administration
operations, research, and facilities
The conference agreement includes $750,000 for a study by
the National Academy of Sciences pursuant to H.R. 2090, as
passed by the House of Representatives on September 12, 2000.
In addition, the conferees encourage the National Oceanic
and Atmospheric Administration (NOAA) and the Federal Maritime
Administration (FMA) to work collaboratively with the Great
Lakes Science Center in Cleveland, Ohio in support of its Great
Lakes Tour simulator and related education programming.
The conferees also direct the National Oceanic and
Atmospheric Administration (NOAA) to develop a plan to
establish a program for migrating the 8 mm NEXRAD Level II data
archives onto a modern retrievable media, and to report back to
the Committees on Appropriations by February 1, 2001.
Sec. 206. The conference agreement includes a technical
change to funding provided to the National Marine Fisheries
Management Service regarding Stellar sea lion related funding.
Sec. 207. The conference agreement includes $7,500,000
for assistance to certain Alaska fisheries.
Sec. 208. The conference agreement includes $3,000,000
for assistance to certain Hawaii fisheries.
Sec. 209. The conference agreement includes a provision
regarding the Bering Sea/Aleutian Islands and Gulf of Alaska
fisheries.
Sec. 210. The conference agreement includes $500,000 for
the Irish Institute.
Sec. 211. The conference agreement includes $5,000,000 to
increase coverage and hours of Radio Free Europe/Radio Liberty
(RFE/RL) and Voice of America (VOA) broadcasts to Russia and
surrounding areas affected by the recent restrictions on media
instituted by the Putin regime. In addition, the conference
agreement includes $5,000,000 for Radio Free Asia and the Voice
of America to increase both the quantity and quality of their
broadcasts to China, in accordance with authorization contained
in the China PNTR enacting legislation, Section 701(b)(2) of
H.R. 4444.
Before using any of the transfer authority provided in
this section and within sixty days of enactment of this act,
the Broadcasting Board of Governors shall provide to the
Committees on Appropriations a spending plan for the total
amount provided. This plan should emphasize new RL and VOA
Russian and related broadcasts in specific areas most impacted
by the recent media restrictions. Also included in the spending
plan should be a projection concerning shortwave and medium
wave technology needs in this newly closed environment. Amounts
proposed for transfer to the Broadcasting Capital Improvements
account should be based solely on increased broadcasting to
Russia and surrounding areas and to China.
RELATED AGENCIES
Commission on Online Child Protection
The conference agreement includes $750,000 for the
Commission on Online Child Protection.
Small Business Administration
salaries and expenses
The conference agreement includes $1,000,000 for a grant
to establish an electronic commerce technology distribution
center in Scranton, Pennsylvania.
Sec. 212. The conference agreement includes $1,000,000
for the National Museum of Jazz.
General Provision--This Chapter
Sec. 213. The conference agreement includes a provision
striking sections 406, 635 and 636, and making technical
changes to H.R. 5548.
CHAPTER 3
DEPARTMENT OF DEFENSE
Indirect Airfreight Carriers
The conferees urge the Air Mobility Command (AMC) to
ensure that military air freight is moved in the most time
efficient manner possible. In furtherance of that goal, the
conferees believe that the Civil Reserve Air Fleet (CRAF)
program should admit and encourage indirect airfreight carriers
which have demonstrated ability to provide efficient, cost
effective service.
Distributive Training Technology Program
Public Law 106-259 provided $29,100,000 in ``Other
Procurement, Army'' and $65,700,000 in ``Operation and
Maintenance, Army National Guard'' for the National Guard
Distance Learning Program. It is the conferees' intention that
the funds appropriated for this program shall also be available
for courseware development and commercial off-the-shelf (COTS)
management system software and hardware.
Biological Warfare Defense
The conferees direct that of the funds appropriated in
the Department of Defense Appropriations Act, 2001 (Public Law
106-259) for the Biological Warfare Defense program, under
``Research, Development, Test and Evaluation, Defense-Wide'',
$2,000,000 shall be used only for sensor development in the
Defense Advanced Research Projects Agency's Standoff/Bioagent
Pathogen Detector System program.
Cancer Research
The conferees direct that, using funds appropriated in
the Department of Defense Appropriations Act, 2001 for medical
research programs, the Assistant Secretary of Defense (Health
Affairs) conduct a study on whether environmental factors, such
as air pollutants and electromagnetic radiation, contribute to
a higher than usual rate of incidence of breast cancer in large
populations.
Ballistic Missile Defense Organization
In the Department of Defense Appropriations Act, 2001
(Public Law 106-259), the Congress provided additional funds
for National Missile Defense risk reduction activities. The
Defense Department is reviewing carefully potential
enhancements to the NMD test program, including the addition of
flight tests as well as the collection of data on various
targets and countermeasures. To support these flight test
program enhancements, the conferees direct that $3,000,000 of
the NMD risk reduction increase be allocated to sensor
enhancements and flight test activities outlined in the Arctic
Missile Signature Measurement Program (AMSP).
General Provisions--This Chapter
The conference agreement includes a general provision
(section 301) allowing obligation of a portion of the fiscal
year 2001 procurement funds for the F-22 aircraft, under
specified circumstances.
The conference agreement includes a general provision
(section 302) which transfers primary jurisdiction over Shemya
Island.
The conference agreement includes a general provision
(section 303) requiring the Ballistic Missile Defense
Organization to purchase no less than 40 PAC-3 missiles, the
budgeted quantity, with fiscal year 2001 appropriated funds.
The conference agreement includes a general provision
(section 304) which amends section 8133 of the Department of
Defense Appropriations Act, 2001 (Public Law 106-259),
regarding the amount of transfer authority available to the
Secretary of the Navy for ship cost changes.
The conference agreement includes a general provision
(section 305) which provides the Secretary of a military
department with authority to transfer funds in support of
Fisher Houses and Fisher Suites.
The conference agreement includes a general provision
(section 306) providing such sums as required to the Defense
Vessel Transfer Program Account for the costs of the lease-sale
transfers authorized by the National Defense Authorization Act,
2001.
The conference agreement includes a general provision
(section 307) clarifying congressional intent concerning a Gulf
War illness research program.
The conference agreement includes a general provision
(section 308) providing $150,000,000 in emergency
appropriations to the Department of Defense, for ``Operation
and Maintenance, Navy'', for the repair of the U.S.S. Cole,
which was severely damaged in a terrorist attack in the port of
Aden, Yemen, on October 12, 2000. These funds are in addition
to any amounts appropriated in the Department of Defense
Appropriations Act, 2001 (Public Law 106-259), and are
designated as an emergency requirement pursuant to section
251(b)(2)(A) of the Balanced Budget and Emergency Deficit
Control Act of 1985, as amended. In addition to the repair, the
Navy may expend necessary amounts from these funds for the
necessary stabilization of the vessel and its transportation to
the United States.
The conference agreement includes a general provision
(section 309) making technical corrections to Section 1092 of
the National Defense Authorization Act, 2001, regarding the
establishment of an Aerospace Commission.
The conference agreement includes a general provision
(section 310) which provides $2,000,000 only for planning and
National Environmental Protection Act documentation for the
proposed airfield and heliport at the Marine Corps Air Ground
Task Training Command.
The conference agreement includes a general provision
(section 311) which transfers $5,000,000 to carry out the
provisions of the Minuteman Missile National Historic Site
Establishment Act of 1999 (Public Law 106-115; 113 Stat. 1540).
The conference agreement includes a general provision
(section 312) providing the Secretary of the Air Force with
authority to transfer certain excess property.
The conference agreement includes a general provision
(section 313) providing $100,000,000 in emergency
appropriations for the Overseas Contingency Operations Transfer
Fund, to meet classified requirements requested by the
Administration. Further details are provided in a classified
annex to the Statement of Managers.
The conference agreement includes a general provision
(section 314) providing for the use of up to $3,000,000 for
Marine Corps research into nanotechnology for consequence
management.
The conference agreement includes a general provision
(section 315) specifying the use of funds made available in the
Department of Defense Appropriations Act, 2000, for certain
defense medical initiatives.
The conference agreement includes a general provision
(section 316) providing for the acquisition of certain real
property by the Secretary of the Navy.
The conference agreement includes a general provision
(section 317) regarding the establishment of Marine Fire
Training Centers.
The conference agreement includes a general provision
(section 318) providing the Navy authority to use funds
provided in the Department of Defense Appropriations Act, 2001,
for the repair of the ex-Turner Joy.
The conference agreement includes a general provision
(section 319) providing funds to accelerate transition of the
information technology and information services outsourcing
activity within the National Imagery and Mapping Agency.
The conference agreement includes a general provision
(section 320) restricting the use of funds provided in the
Department of Defense Appropriations Act, 2001 for Air Force
radar operations maintenance and support programs or contracts.
The conference agreement includes a general provision
(section 321) providing $1,000,000 for ``Research, Development,
Test and Evaluation, Air Force'', to develop rapid diagnostic
and fingerprinting techniques along with molecular monitoring
systems for the detection of nosocomial infections.
The conference agreement includes a general provision
(section 322), making technical adjustments associated with
funding provided in the Department of Defense Appropriations
Act, 2001 for the C3RP initiative.
The conference agreement includes a general provision
(section 323) which establishes procedures under which the
Departments of Defense and Interior shall provide the Congress
with a comprehensive plan and proposed legislation for
expansion of the U.S. Army's National Training Center at Fort
Irwin, California. These procedures, including specific
timelines for developing and implementing a proposed expansion
plan and meeting the requirements of the Endangered Species and
National Environmental Policy Acts, are the joint
recommendations of the Secretaries of Defense and Interior to
the Congress.
The Secretaries have informed the Congress that, given
the urgency of the national security considerations involved
and the significant amount of research and analysis which has
already been conducted, their Departments can expedite the
various substantive and procedural reviews required to
implement this expansion. The conferees commend the Secretaries
of Defense and Interior for the considerable progress made in
recent months amongst the various executive branch agencies
involved in this process, and for committing their Departments
to meet the specific objectives contained in the general
provision.
CHAPTER 4
DISTRICT OF COLUMBIA FEDERAL FUNDS
Federal Payment of the District of Columbia Courts
The conference agreement appropriates $400,000 in Federal
funds to the District of Columbia courts to cover the costs of
a fire that broke out on November 22, 2000, in the H. Carl
Moultrie I Courthouse. The appropriation includes $350,000 for
capital repairs and $50,000 for miscellaneous operating
expenses in connection with the fire damage. The conference
agreement also includes language that allows the courts to
reallocate not more than $1,000,000 of funds already
appropriated for fiscal year 2001 in the event the $400,000 is
not sufficient to cover the costs. The fire caused extensive
damage to the Superior Court's Family Division Quality Control
Office and less severe damage to six adjacent judges' chambers,
electrical damage to the court's cell block area, and damage to
electrical and communications wiring.
General Provisions--This Chapter
Sec. 401. The conference agreement inserts a new section
concerning water and sewer payments by Federal agencies to the
District of Columbia and requires the inspector general of each
Federal entity to submit quarterly reports to the House and
Senate Committees on Appropriations on the promptness of
payment by the agency for water and sewer services furnished by
the District.
Sec. 402. The conference agreement inserts a new section
as requested by District officials that repeals a Federal
statute enacted in 1866 to convey certain parcels of land to
the District to be used solely for schools. The property is at
12th and E Streets, N.E., in the North Lincoln Park
neighborhood of Capitol Hill and is the site of the Lovejoy
School which ceased being used as a school in 1984, 118 years
after the land was conveyed. The DC public school system is
under contract to sell the property and although the City
Council has passed local legislation to repeal the 1866 law,
Federal legislation in necessary because the District
government does not have the authority to pass legislation
affecting a Federal land interest.
Sec. 403. The conference agreement inserts a new section
that amends language in section 160 of the FY 2000 DC
Appropriations Act concerning the Victims of Violent Crime
Compensation Act of 1996 that would have required any
unobligated balance in excess of $250,000 to be transferred to
miscellaneous receipts of the U.S. Treasury. The new section
allows the use of $250,000 at the discretion of District
officials and requires that amounts in excess of $250,000 be
used in accordance with a plan developed by the District and
approved by the House and Senate Committees on Appropriations,
the House Committee on Government Reform, and the Senate
Committee on Governmental Affairs. The language also requires
that not less than 80 percent of the amounts in excess of
$250,000 be used for direct compensation payments to crime
victims.
Sec. 404. The conference agreement includes a new section
concerning the Reserve Fund for the District of Columbia
established pursuant to the District of Columbia Appropriations
Act, 2001 (Public Law 106-522, approved November 22, 2000).
Sec. 405. The conference agreement includes a new section
that conforms the enrollment count of the District of Columbia
charter schools with existing District of Columbia law.
Sec. 406. The conference agreement amends H.R. 4942 by
repealing the District of Columbia Appropriations Act, 2001, as
contained therein. Since this appropriations Act has already
been enacted in H.R. 5633 (Public Law 106-428) including it in
H.R. 4942 is no longer necessary.
CHAPTER 5
ENERGY AND WATER DEVELOPMENT
DEPARTMENT OF DEFENSE--CIVIL
DEPARTMENT OF THE ARMY
Corps of Engineers--Civil
General Investigations
The conference agreement includes an additional $900,000
for General Investigations. Of the funds provided, $100,000 is
for a reconnaissance study of shore protection needs at North
Topsail Beach, North Carolina; $100,000 is for a reconnaissance
study for a water infrastructure project in Passaic County, New
Jersey; $100,000 is for a reconnaissance study of flooding,
drainage, and other related problems in the Cayuga Creek
Watershed, New York; and $600,000 is for a cost-shared
feasibility study of the restoration of the lower St. Anthony's
Falls natural rapids in Minnesota.
Construction, General
The conference agreement includes an additional
$2,750,000 for Construction, General. Of the funds provided,
$75,000 shall be available for planning and design of a project
to provide for floodplain evacuation in the watershed of Pond
Creek, Kentucky; $100,000 shall be available for the design of
recreation and access features at the Louisville Waterfront
Park in Kentucky; $75,000 shall be available for research on
the eradication of Eurasian water milfoil in Houghton Lake,
Michigan; and $500,000 shall be available for a Limited
Reevaluation Report for the Central Boca Raton segment of the
Palm Beach County, Florida, shore protection project. The
conferees are concerned that the utter lack of sand on some
stretches of beach in Boca Raton is negatively impacting the
local economy that is dependent on tourism. Therefore, the
conferees recommend that the Corps of Engineers proceed as
expeditiously as possible to renourish the beach in Boca Raton.
In addition, $2,000,000 of the funds provided shall be
available to initiate design and construction of the Hawaii
Water Management Project, including Waiahole Ditch on Oahu, Kau
Ditch on Maui, Pioneer Mill Ditch on Hawaii, and the complex
system on the west side of Kauai.
In addition, language has been included which provides
that the Secretary of the Army may use up to $5,000,000 of
previously appropriated funds to carry out the Abandoned and
Inactive Noncoal Mine Restoration program authorized by section
560 of Public Law 106-53.
Flood Control, Mississippi River and Tributaries, Arkansas, Illinois,
Kentucky, Louisiana, Mississippi, Missouri, and Tennessee
The conference agreement includes an additional
$3,500,000 for Flood Control, Mississippi River and Tributaries
to be used for the repair, restoration or maintenance of
Mississippi River levees and for the correction of deficiencies
in the mainline Mississippi River levees.
DEPARTMENT OF THE INTERIOR
Bureau of Reclamation
Water and Related Resources
The conference agreement includes an additional
$2,000,000 for Water and Related Resources for construction of
the Mid-Dakota Rural Water System project in South Dakota.
DEPARTMENT OF ENERGY
Energy Programs
Energy Supply
The conference agreement includes an additional $800,000
for Energy Supply for the Prime, LLC, of central South Dakota,
for final engineering and project development of the integrated
ethanol complex, including an ethanol unit, waste treatment
system, and enclosed cattle feed lot.
Science
The conference agreement includes an additional
$1,000,000 for Science for high temperature superconducting
research and development at Boston College.
CHAPTER 6
General Provisions--This Chapter
Sec. 601. The conference agreement mandates that not less
than $1,350,000 from funds appropriated under this heading in
the Foreign Operations, Export Financing, and Related Programs
Appropriations Act, 2001, shall be available only for the
Protection Project to continue its study of international
trafficking, prostitution, slavery, debt bondage and other
abuses of women and children.
Sec. 602. Embassy Compensation Authority.--The conference
agreement contains language that authorizes the use of funds
appropriated to the account ``Economic Support Fund'' in Public
Law 106-429 for payment to the government of the People's
Republic of China for property loss and damage arising out of
the May 7, 1999 incident in Belgrade, Federal Republic of
Yugoslavia. These funds may be made available notwithstanding
any other provision of law.
CHAPTER 7
DEPARTMENT OF THE INTERIOR
Bureau of Land Management
Land Acquisition
The conference agreement provides $5,000,000 for land
exchanges authorized by Title VI of the Steens Mountain
Cooperative Management and Protection Act.
United States Fish and Wildlife Service
resource management
The conference agreement provides $500,000 for a grant to
the Center for Reproductive Biology at Washington State
University for basic research on reproduction abnormalities
that could be causing reductions in salmon in the Columbia/
Snake River system due to presence of high estrogen levels in
the water. The research may also be beneficial to human health
conditions affected by the same water borne chemicals.
multinational species conservation fund
The conference agreement provides $750,000 for recently
authorized Great Ape conservation activities.
National Park Service
operation of the national park system
The conference agreement provides $100,000 for the
National Capital Region to complete a feasibility study and
select a preferred alternative site for constructing a
boathouse in Arlington County, Virginia.
The Department of Justice, in cooperation with the City
of Alexandria and the National Park Service, is encouraged to
seek expeditious settlement with the remaining six landowners
on the Alexandria, Virginia waterfront to achieve the urban
land use and design objectives of the city and the National
Park Service in bringing this longstanding lawsuit to
resolution. In settling these claims, the Justice Department
should use, to the extent authorized by law, the permanent
judgment appropriation established pursuant to 31 U.S.C. 1304
as the source of any compensation to the landowners that may be
required.
national recreation and preservation
The conference agreement provides $1,600,000 for National
Recreation and Preservation. Within the statutory aid account,
$500,000 is specifically for continued activities at the
National Constitution Center in Philadelphia, Pennsylvania. The
remaining $1,100,000 is for a grant to the Historic New Bridge
Landing Park Commission for acquisition of land immediately
adjacent to the Historic New Bridge Landing, which is a site
listed on the National Register of Historic Places and is a
site of historic significance in the revolutionary war.
historic preservation fund
The conference agreement provides $100,000 to be provided
to the Massillon Heritage Foundation, Inc. in Massillon, Ohio.
The Secretary is directed to provide this grant as soon as
possible for critical repair and replacement needs.
construction
The conference agreement provides $3,500,000 for
construction. Within that amount $1,500,000 is for
reconstruction and renovation at the Stones River National
Battlefield and $2,000,000 is for the Millennium Cultural
Cooperative Park in Ohio.
Department of Energy
energy conservation
The conference agreement provides $300,000 for a grant to
the Oak Ridge National Laboratory/Nevada Test Site Development
Corporation. These funds will be used to develop cooling,
refrigeration, and thermal energy management equipment capable
of using natural gas or hydrogen fuels, and to improve the
reliability of heat-activated cooling, refrigeration, and
thermal energy management equipment used in combined heating,
cooling, and power applications.
RELATED AGENCY
Woodrow Wilson International Center for Scholars
payment to endowment fund
The conference agreement provides $5,000,000 for the
endowment fund of the Woodrow Wilson International Center for
Scholars.
General Provision--This Chapter
Section 701 appropriates $30 million to the Indian Health
Service, of which $15 million is for Alaska Native alcohol
control and sobriety programs and $15 million is for drug and
alcohol prevention and treatment for non-Alaska tribes.
CHAPTER 8
General Provisions--This Chapter
The conference agreement provides funding to the Health
Resources and Services Administration in the Department of
Health and Human Services, for the construction of the
Christian Nurses Hospice in Brentwood, New York ($400,000).
The conference agreement provides funding to the
Institute of Museum and Library Services, for expansion of the
marine biology program at the Long Island Maritime Museum
($250,000).
CHAPTER 9
LEGISLATIVE BRANCH
CONGRESSIONAL OPERATIONS
House of Representatives
payments to widows and heirs of decreased members of congress
The conference agreement includes the traditional death
gratuity for the widow of Herbert H. Bateman, late a
Representative from the State of Virginia, the widow of Bruce
F. Vento, late a Representative from the State of Minnesota,
and the widow of Julian C. Dixon, late a Representative from
the State of California.
Archtect of the Capitol
Capitol Buildings and Grounds
salaries and expenses
An amount of $1,033,000 is provided to construct an
emergency egress stair from the fourth floor of the Capitol.
These funds are designated as an emergency requirement.
Library of Congress
salaries and expenses
The agreement provides $100,000,000 to the Library of
Congress to establish a national digital information
infrastructure and preservation program. Of this amount,
$25,000,000 is provided immediately and remains available until
expended. An additional amount up to $75,000,000 is provided to
match dollar-for-dollar any non-federal contributions to this
program, including in-kind contributions, that are received
before March 31, 2003. The information and technology industry
that has created this new medium should be a contributing
partner in addressing digital access and preservation issues
inherent in the new digital information environment. This
program is a major undertaking to develop standards and a
nationwide collecting strategy to build a national repository
of digital materials.
The Library is directed to develop a phased
implementation plan for this program jointly with Federal
entities with expertise in telecommunications technology and
electronic commerce policy and with participation of other
Federal and non-Federal entities. After consultation with the
Joint Committee on the Library, membership of which is changed
to include the chair of the Legislative Subcommittee of the
Committee on Appropriations of the House of Representatives,
the Library shall seek approval of the program plan from the
Committee on House Administration, the Committee on Rules and
Administration of the Senate, and the Committees on
Appropriations of the House of Representatives and the Senate.
The Library of Congress is authorized to expend up to
$5,000,000, before approval of the plan, for the development of
the plan and for collecting or preserving digital information
that may otherwise vanish during the plan development and
approval cycle.
The overall plan should set forth a strategy for the
Library of Congress, in collaboration with other Federal and
non-Federal entities, to identify a national network of
libraries and other organizations with responsibilities for
collecting digital materials that will provide access to and
maintain those materials. In addition to developing this
strategy, the plan shall set forth, in concert with the
Copyright Office, the policies, protocols, and strategies for
the long-term preservation of such materials, including the
technological infrastructure required at the Library of
Congress. In developing the plan, the Library should be mindful
of the conclusions drawn in a recent National Academy of
Sciences report concerning the Library's trend toward
insularity and isolation from its clients and peers in the
transition toward digital content.
General Provisions--This Chapter
The conference agreement includes a section concerning
the Civil Service Retirement System and the Federal Employees
Retirement System. Under current law, certain service as an
employee of a congressional campaign committee performed before
December 12, 1980 is creditable under the Civil Service
Retirement System (CSRS), provided that the applicant makes the
required employee contributions to the Civil Service Retirement
and Disability Fund. The conference report extends the date of
eligible service to December 31, 1990 and allows service that
began after 1983 to be creditable under the Federal Employees
Retirement System (FERS). The provision also permits an
employee of a legislative service organization of the House of
Representatives to have such service credited under CSRS or
FERS (as applicable), upon payment of the required employee
contributions to the retirement fund.
The conference agreement amends, at the request of the
managers on the part of the Senate, the amount provided for
Senate ``miscellaneous items'' in the 2001 Legislative Branch
Appropriations Act by striking ``$8,655,000'' and inserting
``$25,155,000''. The managers on the part of the House have
receded to the request of the Senate.
The conferees have included a new provision relating to
the application of Senate procedure to conference reports.
CHAPTER 10
DEPARTMENT OF DEFENSE--MILITARY CONSTRUCTION
The conferees provide a total of $43,500,000 to the
Department of Defense for Planning and Design, Military
Construction, and Family Housing. These amounts are provided as
follows:
Account/location/facility Amount
Military Construction, Army:
Planning and Design for Efficient Basing in Europe.. $25,000,000
Presidio of Monterey: Information Management
Computer Center................................... 2,000,000
Military Construction, Air Force: MacDill AFB, Florida:
Runway Improvements................................. 12,000,000
Military Construction, Army National Guard:
Helena, Montana: Fixed Wing Parking Apron........... 3,000,000
Fort Lewis, Washington: Planning and Design for 66th
Aviation Brigade Readiness Center................. 1,500,000
--------------------------------------------------------
____________________________________________________
Total............................................. 43,500,000
land transfers
The conferees include two provisions, sections 1002 and
1003 which direct the Department of Interior to transfer,
without consideration, parcels of public domain land to the
Department of the Army and the Department of the Air Force.
Section 1003 transfers land surrounding the Yakima Training
Center in Washington to the Department of the Army, and section
transfers land located near Cannon AFB in New Mexico to the
Department of the Air Force. Both transfers will facilitate
military training exercises.
CHAPTER 11
DEPARTMENT OF TRANSPORTATION
General Provisions--This Chapter
The conference agreement includes a provision that
clarifies that the Dulles corridor project shall include a rail
extension from the West Falls Church, Virginia metrorail
station to Tysons Corner, Virginia.
The conference agreement includes a provision that amends
item 630 of section 1602 of Public Law 105-178 regarding a
highway project in Buffalo, New York.
The conference agreement directs the Secretary of
Transportation to credit the State of Arkansas with the fair
market value of land in Fort Chaffee, Arkansas, incorporated as
right of way on the U.S. 71 relocation project, for the state
share of the relocation project.
The conference agreement includes an appropriation of
$2,500,000 from the airport and airway trust fund for various
airport improvements at the Huntsville International Airport in
Alabama.
The conference agreement includes an appropriation of
$1,000,000 from the mass transit account of the highway trust
fund for the Southeast Corridor light rail project in Dallas,
Texas.
The conference agreement includes a provision that would
designate the Ports-to-Plains corridor within the State of
Texas if the Texas Transportation Commission does not designate
that corridor within the State of Texas by June 30, 2001. The
Federal Highway Administration is expected to submit to the
House and Senate Committees on Appropriations, the Senate
Environment and Public Works Committee, and the House
Transportation and Infrastructure Committee a recommendation
for the remaining elements of the Ports-to-Plains corridor by
September 30, 2001 should the states of New Mexico, Colorado,
Oklahoma and Texas not reach a unified consensus on the
designation of the Ports-to-Plains corridor from Dumas, Texas
to Denver, Colorado. The Federal Highway Administration's
recommendation shall also include the basis for its
recommendation.
The conference agreement includes an appropriation of
$3,000,000 from the mass transit account of the highway trust
fund for the Newark-Elizabeth rail link project in New Jersey.
The conference agreement includes a provision that waives
the requirements of section 5309(m)(3)(C) of title 49, United
States Code, for the capital investment grants made available
in the Department of Transportation and Related Agencies
Appropriations Act, 2001 (Public Law 106-346). The provision
also makes eligible for highway bridge replacement and
rehabilitation program funds in fiscal year 2001 those projects
specified in House report 106-940, the conference report
accompanying the Department of Transportation and Related
Agencies Appropriations Act, 2001 (Public Law 106-346). The
provision also amends section 378 of the Department of
Transportation and Related Agencies Appropriations Act, 2001 by
inserting after ``U.S. 101'' the following: ``and Interstate 5
Trade Corridor''.
The conference agreement includes an appropriation of
$4,000,000 from the highway trust fund for commercial remote
sensing products and spatial information technologies
authorized in section 5113 of Public Law 105-178, as amended.
The conference agreement includes a provision that
permits Amtrak to continue leasing vehicles from the General
Services Administration's interagency fleet management system
in fiscal year 2001 and for each fiscal year thereafter that
Amtrak continues to receive a federal operating grant.
The conference agreement includes a provision which
clarifies financial and project management authority for a
project funded in the Department of Transportation and Related
Agencies Appropriations Act, 2001. The agreement requires the
Secretary of Transportation to transfer to the City of Oshkosh,
Wisconsin the $575,000 previously appropriated for removal of
the Fox River Bridge, and to assume no management
responsibility for this project.
The conference agreement includes a provision authorizing
the Secretary of Transportation to issue a certificate of
documentation with endorsement for employment in the coastwise
trade for the M/V Wells Gray and the Annandale.
The conference agreement includes a provision authorizing
the Administrator of the General Services Administration to
convey Coast Guard property in Middletown, California to Lake
County, California.
The conference agreement includes a provision authorizing
the Administrator of the General Services Administration or the
Commandant of the U.S. Coast Guard to convey to the Town of
Nantucket, Massachusetts part of U.S. Coast Guard LORAN Station
Nantucket and additional land located in Nantucket.
The conference agreement includes a provision authorizing
the Administrator of the General Services Administration or the
Commandant of the U.S. Coast Guard to convey to the City of
Newburyport, Massachusetts the Plum Island Boat House and the
Plum Island Lighthouse, located in Essex County, Massachusetts.
The conference agreement includes a provision authorizing
the Administrator of General Services Administration to
transfer to the National Oceanic and Atmospheric Administration
the property known as Coast Guard Station Scituate in
Massachusetts, contingent upon the relocation of Coast Guard
Station Scituate to a suitable site.
The conference agreement includes a provision which
extends from 2002 to 2004 the Coast Guard's current practice
relating to the disposal of dry bulk cargo residue on the Great
Lakes; requires a study on the effectiveness of the current
practice; and authorizes the promulgation of regulations to
regulate incidental discharges of such cargo into the Great
Lakes, taking into account the findings of the study required
in this section.
The conference agreement includes a provision that amends
the appointment process and qualifications for individuals
serving on the Great Lakes Pilotage Advisory Committee.
The conference agreement includes a provision that
requires only a vessel of the United States may perform certain
specified escort operations and towing assistance, except for a
vessel in distress.
The conference agreement includes a provision authorizing
the expenditure of $100,000 in fiscal year 2001 funding for
Coast Guard environmental compliance and restoration to
reimburse the owner of the former Coast Guard lighthouse
facility in Cape May, New Jersey for costs incurred for cleanup
of lead contaminated soil. The Department of Transportation and
Related Agencies Appropriations Act, 2001 included $100,000 for
this purpose.
The conference agreement includes an appropriation of
$2,400,000, to be derived from the Highway Trust Fund, for the
planning, development and construction of rural farm-to-market
roads in Tulare County, California. The non-federal share of
such improvements shall be 20 percent.
The Department of Transportation is instructed that the
grantee for the Nashua, New Hampshire project identified in
section 378 of Public Law 106-346 shall be the City of Nashua,
New Hampshire.
The conference agreement includes a provision authorizing
the Coast Guard to transfer not to exceed $200,000 to the
Traverse City Area Public School District for the demolition
and removal of Building 402 at former Coast Guard property in
Traverse City, Michigan. The provision makes the transfer
contingent upon receipt by the Coast Guard of a detailed, fixed
price estimate for this work. Funding in the amount of $200,000
was appropriated for this purpose in the Department of
Transportation and Related Agencies Appropriations Act, 2001.
The conference agreement includes an appropriation of
$500,000 from the mass transit account of the highway trust
fund for buses and bus facilities at Alabama A&M University.
These funds are to be available until expended.
The conference agreement includes a provision which
directs the Federal Transit Administration to distribute
$7,047,502 to an urbanized area over 200,000 in population
which did not receive fiscal year 1999, 2000 and 2001 fixed
guideway modernization funds to which it was lawfully entitled,
prior to the formula apportionment of ``Fixed guideway
modernization'' funds in fiscal year 2002.
The conference agreement includes a provision that
requires that airport improvement program formula changes
provided under Public Law 106-181 and defined in section 104 of
that Act shall be applied without regard to the overall funding
levels for the airport improvement program in fiscal year 2001.
The conference agreement includes a provision that amends
item number 473 contained in section 1602 of the Transportation
Equity Act for the 21st Century relating to a high priority
project in Minnesota.
The conference agreement includes a provision that delays
the issuance of the final train horn rule until July 1, 2001.
This issue will not be addressed again in subsequent
legislation.
The conference agreement provides $8,700,000 for four
transportation projects in Texas, Minnesota, Wisconsin, Indiana
and Colorado.
CHAPTER 12
GENERAL SERVICES ADMINISTRATION
Real Property Activities
federal buildings fund
The conference agreement includes a new provision
providing $2,070,000 for the renovation and redevelopment of
portions of the historic Federal building in Terre Haute,
Indiana. The conferees direct the General Services
Administration to report to the Committees on Appropriations by
March 15, 2001 on steps it will take to ensure long-term
Federal occupancy of this building.
DEPARTMENT OF THE TREASURY
United States Customs Service
operations, maintenance and procurement, air and marine interdiction
programs
The conference agreement includes $7,000,000 for
necessary expenses related to the procurement of two aircraft
and related equipment expenses at the Customs National Aviation
Center in Oklahoma City, Oklahoma. The conference agreement
provides that none of the funds shall be available for
obligation until an expenditure plan is submitted for approval
to the Committees on Appropriations.
UNITED STATES POSTAL SERVICE
tinton falls, new jersey
The conferees are aware that the Postal Service has
identified Tinton Falls, New Jersey as a town to receive a new
postal facility, but are concerned that this need for a new
postal facility is not being addressed in a timely manner. The
conferees urge the Postal Service to give this project a high
priority in its capital facility plan for the next fiscal year.
CHAPTER 13
DEPARTMENT OF VETERANS AFFAIRS
Departmental Administration
construction, minor projects
The conferees have included $8,840,000 for Construction,
minor projects. Of this amount, $8,440,000 is recommended for
projects related to the integration of facilities at the Boston
VA Medical Center. These funds are to supplement amounts
previously provided for minor construction projects in fiscal
year 2001 in Veterans Integrated Service Network 1.
In addition, the conferees recommend $400,000 to be used
towards construction costs of a cover for the Riverside
National Cemetery amphitheater.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Community Planning and Development
empowerment zones/enterprise communities
Provides an additional $110,000,000 for urban empowerment
zones, as authorized by the Taxpayer Relief Act of 1997.
community development fund
Language is included which makes a technical amendment to
an economic development initiative grant provided in Public Law
106-377.
Language is included which transfers unobligated grant
funds from a specific city to a county in order to carry out
the purposes for which the grant was made.
The conferees have amended Public Law 106-377 to provide
an additional $66,128,000 for targeted Economic Development
Initiative grants under the terms and conditions as provided in
Public Law 106-377, as follows:
--$425,000 for Project Home, Allied-Dunn's Marsh
Neighborhood Center and Prairie Crossing low income
housing rehabilitation project in Wisconsin;
--$1,000,000 for F.E.A.T. for the establishment of
the Merle Travis Park in Muhlenberg County, Kentucky;
--$750,000 for the Washington County Commission for
the World Wildlife Educational Museum addition to the
Dixie Chapter in St. George, Utah;
--$250,000 for the Henry Ford Museum--Greefield
Village in Dearborn, Michigan for expenses related to
the design, planning and construction of the ``Great
American Road Exhibit'';
--$6,000,000 for Shepherd College in Shepherdstown,
West Virginia for construction, related activities, and
programs at the Scarborough Library;
--$633,000 for the State of Nevada to establish a
state-wide computer database of utilities and
infrastructure needs for rural communities and Indian
reservations;
--$850,000 for the University of South Carolina for
the operation of an historical archive at the
University of South Carolina, Department of Archives,
South Carolina;
--$500,000 for the Idaho City Parks and Recreation
Commission for the Idaho City Mine Tailings Site
Restoration Project and Park in Idaho City, Idaho;
--$250,000 for the Swiss Center of North America,
New Glarus, Wisconsin;
--$750,000 for the City of Madison, Wisconsin for
the Troy Housing and Gardens Development;
--$750,000 for the City of New Loft, Wisconsin for
acquisition and restoration of a teen facility;
--$2,000,000 for the City of Pasadena, Texas for a
Police Academy driver training track;
--$1,300,000 for the City of Baytown, Texas for its
Emergency Operations Center;
--$750,000 for the City of Las Vegas, Nevada for
downtown development initiatives;
--$800,000 to support the Innovative Brownfields
Site Assessment and Remediation Technology
Demonstration at the Defense Fuel Support Point, in
Lynn Haven, Florida;
--$200,000 for the Tri-County Agricultural Complex
in Calhoun, Gulf, and Liberty Counties, Florida
--$100,000 for the CCTV Central Coast partnership
(California) to promote environmentally friendly,
sustainable agriculture practices;
--$600,000 for the Central California Coast
Research Partnership;
--$500,000 for the Santa Barbara County, California
Water Agency for costs associated with emergency
sediment removal in the Twitchell Reservoir;
--$500,000 for the City of Paso Robles, California
for the Oak Parks Housing Project for modernization and
rehabilitation projects;
--$100,000 for the Cambridge, Massachusetts
Redevelopment Authority public spaces initiative;
--$1,000,000 for the Sidney R. Yates and Addie
Yates Exhibition Center at the Field Museum in Chicago,
Illinois;
--$750,000 for the Greater Dwight Development
Corporation in New Haven, Connecticut for its child
care center and offices;
--$500,000 for methamphetamine site clean-up
activities of the Fresno, California Sheriff's
Department;
--$3,000,000 to the Cross Valley Rail Corridor
Joint Powers Authority, California for rehabilitation
of the San Joaquin Railroad;
--$1,000,000 to the City of Monterrey, California
to upgrade 911 emergency response services;
--$2,035,000 for Eastern Connecticut University for
upgrade of its technology systems;
--$500,000 for the City of Vernon, Connecticut for
brownfields remediation activities;
--$1,000,000 for the Mystic Seaport Maritime
Education and Research Center in Mystic, Connecticut;
--$2,700,000 for the Southeastern Pennsylvania
Consortium on Higher Education for a collaborative Math
and Science Institute;
--$900,000 for the Town of Towamencin, Pennsylvania
for its urban park and recreation recovery project;
--$1,400,000 for Temple University, Pennsylvania
for its Center for a Sustainable Environment;
--$600,000 for the Township of Plainsboro, New
Jersey for its Nature and Education Center;
--$300,000 for the Saint Mary's County, Maryland
River Project;
--$450,000 for the Truitt Laboratory of the
Chesapeake Biological Laboratory for the Bayscapes
Habitat Reconstruction Project, Maryland;
--$800,000 for the Edmonds Community College
Foundation, Washington for a Center on Families;
--$400,000 for the Access Community Health Network
in Chicago, Illinois;
--$500,000 for the City of Seymour, Connecticut
Police Department for upgrades of law enforcement
technology;
--$2,500,000 for the Town of Beacon Falls,
Connecticut for the Pinebridge Industrial Park;
--$150,000 for the City of Sacramento, California
for the Emerging Technology Institute;
--$200,000 for the Kansas City, Kansas forensics
crime laboratory;
--$700,000 for the Kansas City, Kansas Humane
Society for expenses associated with relocation of its
facilities;
--$350,000 for the expansion of the Dunbar
Community Center in Springfield, Massachusetts;
--$500,000 to the West Virginia High Technology
Consortium Foundation, Inc. for high priority economic
development initiatives including land acquisition;
--$1,000,000 for the Medford Area School District,
Wisconsin for after-school programs;
--$300,000 for the North Central Wisconsin
Workforce Development Board for education, training,
counseling, emergency assistance and related services
for displaced workers and their families in central
Wisconsin;
--$250,000 for the Portage County, Wisconsin
Business Council Foundation in Stevens Point for
activities including construction and training related
to a business education and training center and a
regional training clearinghouse;
--$200,000 for the Development Association of
Superior/Douglas Counties, Wisconsin for a
microenterprise loan and technical assistance fund;
--$500,000 for the Chippewa County Economic
Corporation in Wisconsin for construction of a
workforce development center;
--$365,000 for the City of Wausau, Wisconsin for
brownfields remediation in Marathon County;
--$1,000,000 for the Unity School District, Balsam
Lake, Wisconsin for after-school activities;
--$100,000 for the Marathon County, Wisconsin
Sheriff's Department for Central Wisconsin drug
prevention initiatives;
--$500,000 for the Santa Ana, California Police
Department crime analysis unit;
--$1,300,000 for the City of Jackson, Mississippi
for its brownfields clean-up activities;
--$500,000 for Essex County, Massachusetts for its
wastewater and combined sewer overflow program;
--$500,000 for Pacific Union College, California
for the Napa Valley Resource Center job training
program;
--$400,000 for the establishment of the Wolfe
Center for teen substance abuse in Napa County,
California;
--$500,000 for Dyer, Indiana for a water diversion
project;
--$500,000 for the Community and Family Resource
Center renovation project in Newberg, Oregon;
--$2,000,000 for the George Meany Center for Labor
Studies in Silver Spring, Maryland;
--$1,000,000 for the Rhode Island State Police for
technology upgrade initiatives;
--$2,000,000 for the War Memorial Museum in
Milwaukee, Wisconsin;
--$500,000 for the Mott Community College Workforce
Development Institute in Michigan;
--$1,000,000 for Maricopa County Community College
for the Achieving a College Education Initiative (ACE)
in Arizona;
--$1,000,000 to Coffee County, Tennessee for the
Coffee County Industrial Park;
--$1,500,000 to the Tennessee Fire Services and
Codes Enforcement Academy in Bedford County, Tennessee;
--$600,000 to the 21st Century Council of Lawrence
for the Lawrence County Industrial Park in Tennessee;
--$350,000 to the Fayetteville-Lincoln County
Library Board in Tennessee for the Lincoln County
Library;
--$150,000 to the University of Tennessee Center
for Business and Economic Research to study the
economic impact of alternative management policies of
TVA-managed lakes in rural East Tennessee;
--$2,500,000 to Winston-Salem University in
Winston-Salem, North Carolina for the reconstruction of
St. Phillips Church ($2,000,000) and Atkins House
($500,000);
--$1,575,000 to Escambia County in Florida for
development costs for infrastructure of Central
Commerce Park;
--$1,000,000 to Ashland University in Ashland, Ohio
for rehabilitation and expansion of the Kettering
Science Center;
--$640,000 to Waukegan, Illinois for renovation of
the historic Genesee Theater;
--$1,155,000 to the Tampa Housing Authority in
Tampa, Florida for costs associated with the Tom Dyer
Elderly Housing Redevelopment Project.
DEPARTMENT OF THE TREASURY
Community Development Financial Institutions
community development financial institutions fund program account
Increases the cap on administrative expenses by
$1,000,000, in order to accommodate increased responsibilities
assigned to the Fund by the New Markets Initiative. The
conferees direct the CDFI Fund to submit a report to the
Committees on Appropriations within 60 days of enactment
describing plans for carrying out these responsibilities,
including staffing and resource requirements. The conferees
would consider supplemental appropriations for this purpose if
CDFI demonstrates that additional funds are needed.
Environmental Protection Agency
science and technology
Language is included which provides $1,000,000 in
additional appropriations for the continuation of the South
Bronx Air Pollution Study being conducted by New York
University.
environmental programs and management
Language is included which makes a technical correction
to a grant provided to the San Bernardino Valley Municipal
Water District in Public Law 106-377.
state and tribal assistance grants
Language is included which clarifies that funds
appropriated for infrastructure needs in the New York City
watershed shall be awarded under section 1443(d) of the Safe
Drinking Water Act, as amended.
Language is included which makes funds appropriated in
Public Law 106-377 for a specific project in Indiana available
for an alternative project.
The conferees have amended Public Law 106-377 to include
an additional $20,630,000 to communities or other entities for
construction of water and wastewater treatment facilities. Cost
share requirements and all other terms and conditions provided
in Public Law 106-377 for these grants shall also apply to
these grants, distributed as follows:
1. $1,000,000 for combined sewer overflow infrastructure
improvements on the Connecticut River.
2. $7,280,000 to Grand Rapids, Michigan for combined
sewer overflow infrastructure improvements.
3. $3,000,000 for water delivery system infrastructure
improvements for the cities of Arcadia and Sierra Madre,
California.
4. $7,850,000 for wastewater facility, drinking water,
and water system delivery infrastructure improvements in Milton
Township ($5,000,000), the Village of McDonald ($350,000), and
the Village of Wellsville ($2,500,000), Ohio.
5. $1,000,000 for wastewater treatment infrastructure
improvements in Carmel, Indiana.
Federal Emergency Management Agency
emergency management planning and assistance
Language is included which provides $100,000,000 for new
fire fighting programs as authorized by the Federal Fire
Prevention and Control Act, as amended.
CHAPTER 14
General Provisions--This Chapter
The conference agreement includes the adoption of H. Con.
Res. 234 by the Senate.
The conference agreement includes a new provision
relating to the application of the Federal Reports Elimination
and Sunset Act of 1995 to certain reports.
The conferees direct the Comptroller General of the
United States to (1) ascertain the ownership of the West Campus
Buildings of the Saint Elizabeth's Hospital complex in the
District of Columbia; (2) review and comment on existing cost
estimates for mothballing/stabilization, phase II environmental
mediation, phase II archaeological study, environmental impact
study, and land use study; (3) report on any existing historic
designations and corresponding responsibilities; and (4)
identify action required to facilitate transfer of the
property. The conferees request that the report be completed
and submitted to the House and Senate Committees on
Appropriations within 45 days of the enactment of this Act.
The conference agreement includes a new provision
rescinding 0.22 percent of the discretionary budget authority
provided (or obligation limit imposed) for fiscal year 2001,
except for those programs, projects, and activities which are
specifically exempted. The provision exempts from rescission
the Military Personnel accounts of the Department of Defense
Appropriations Act, 2001, and fiscal year 2001 amounts for
activities funded in the Departments of Labor, Health and Human
Services, and Education, and Related Agencies Appropriations
Act.
DIVISION B
TITLE I
The conference agreement includes a section that provides
greater availability of food assistance in day care centers by
modifying eligibility criteria in the Child and Adult Care Food
Program.
The conference agreement includes a section to authorize
a pilot program through the Summer Food Service Program to
examine whether reducing burdensome paperwork would increase
the availability of food assistance for children during the
summer who, during the school year, have access to meals
through the School Lunch Program.
The conference agreement includes language which
authorizes the Secretary of the Interior to conduct a
feasibility study for a Sacramento River, California, diversion
project.
The conference agreement includes language which modifies
the authorization for the Saint Francis River Basin, Missouri
and Arkansas, project to expand the boundaries of the project
to include Ten- and Fifteen-Mile Bayous near West Memphis,
Arkansas.
The conference agreement includes language which
authorizes the Secretary of the Army to enter into an agreement
to permit the City of Alton, Illinois, to construct
recreational facilities at the Melvin Price Lock and Dam.
The conference agreement includes language which
authorizes the Secretary of the Interior, in cooperation with
Washoe County, Nevada, to participate in the planning, design,
and construction of the Truckee Watershed Reclamation Project.
The conference agreement includes language which
authorizes the Secretary of the Army to widen and deepen the
Alafia Channel in Tampa Harbor, Florida.
The conference agreement includes language which
authorizes a number of environmental infrastructure projects.
The conference agreement includes language which
authorizes the Secretary of the Army to provide technical and
financial assistance to carry out projects to improve the water
quality in the Florida Keys National Marine Sanctuary.
The conference agreement includes language to provide for
the restoration of the San Gabriel Basin in California.
The conference agreement includes language which
authorizes the Secretary of the Army to participate in studies
and the planning and design of projects which offer a long-term
solution to the problem of groundwater pollution caused by
perchlorates.
The conference agreement includes language which
authorizes the construction of fish passage facilities at the
New Savannah Bluff Lock and Dam in Georgia and South Carolina.
The conference agreement includes language which provides
for the extinguishment of reversionary interests and use
restrictions at the Port of Umatilla, Oregon.
The conference agreement includes language which repeals
section 101(b)(6) of the Water Resources Development Act of
2000.
The conference agreement includes language which directs
the Secretary of the Army to reimburse the East Bay Municipal
Water District for the Federal share of costs incurred by the
district for the Penn Mine, Calaveras County, California,
aquatic ecosystem restoration project.
The conference agreement includes language which
authorizes the Secretary of the Army to construct intake
facilities at Greers Ferry Lake, Arkansas, for the benefit of
Lonoke and White Counties in Arkansas.
The conference agreement includes language which
authorizes the Secretary of the Army to provide the non-Federal
sponsor of the Chehalis River and Tributaries, Washington,
project credit toward the non-Federal share of the cost of the
project for work carried out by the non-Federal sponsor before
the date of enactment of a project cooperation agreement.
Section 119 includes a technical correction to permit the
National Park Service to issue a grant to the city of Ocean
Beach, New York.
Section 120 directs the National Park Service to work
with Fort Sumter Tours, Inc., the concessionaire at Fort Sumter
National Monument in South Carolina, on an amicable solution to
the current legal dispute. In addition, the Director shall
immediately extend the current contract through March 15, 2001,
and for 180 days if the final settlement is agreed to by both
parties.
Section 121 amends title VIII of the Department of the
Interior and Related Agencies Appropriations Act, 2001 to
derive funding under that title from the Land and Water
Conservation Fund. This reference was inadvertently omitted
from the original legislation.
Section 122 amends the Energy Policy Act of 1992 to
include a reference to liquid fuels domestically produced from
natural gas.
Section 123 incorporates by reference the text of the
bill H.R. 4904, as passed by the House of Representatives on
September 26, 2000, expressing the policy of the United States
regarding the U.S. relationship with Native Hawaiians. The text
of H.R. 4904 is as follows:
Be it enacted by the Senate and House of Representatives
of the United States of America in Congress assembled.
SECTION 1. FINDINGS.
Congress makes the following findings:
(1) The Constitution vests Congress with the
authority to address the conditions of the indigenous,
native people of the United States.
(2) Native Hawaiians, the native people of the
Hawaiian archipelago which is now part of the United
States, are indigenous, native people of the United
States.
(3) The United States has a special trust
relationship to promote the welfare of the native
people of the United States, including Native
Hawaiians.
(4) Under the treaty making power of the United
States, Congress exercised its constitutional authority
to confirm a treaty between the United States and the
government that represented the Hawaiian people, and
from 1826 until 1893, the United States recognized the
independence of the Kingdom of Hawaii, extended full
diplomatic recognition to the Hawaiian government, and
entered into treaties and conventions with the Hawaiian
monarchs to govern commerce and navigation in 1826,
1842, 1849, 1875, and 1887.
(5) Pursuant to the provisions of the Hawaiian
Homes Commission Act, 1920 (42 Stat. 108, chapter 42),
the United States set aside 203,500 acres of land in
the Federal territory that later became the State of
Hawaii to address the conditions of Native Hawaiians.
(6) By setting aside 203,500 acres of land for
Native Hawaiian homesteads and farms, the Act assists
the Native Hawaiian community in maintaining distinct
native settlements throughout the State of Hawaii.
(7) Approximately 6,800 Native Hawaiian lessees and
their family members reside on Hawaiian Home Lands and
approximately 18,000 Native Hawaiians who are eligible
to reside on the Home Lands are on a waiting list to
receive assignments of land.
(8) In 1959, as part of the compact admitting
Hawaii into the United States, Congress established the
Ceded Lands Trust for five purposes, one of which is
the betterment of the conditions of Native Hawaiians.
Such trust consists of approximately 1,800,000 acres of
land, submerged lands, and the revenues derived from
such lands, the assets of which have never been
completely inventoried or segregated.
(9) Throughout the years, Native Hawaiians have
repeatedly sought access to the Ceded Lands Trust and
its resources and revenues in order to establish and
maintain native settlements and distinct native
communities throughout the State.
(10) The Hawaiian Home Lands and the Ceded Lands
provide an important foundation for the ability of the
Native Hawaiian community to maintain the practice of
Native Hawaiian culture, language, and traditions, and
for the survival of the Native Hawaiian people.
(11) Native Hawaiians have maintained other
distinctly native areas in Hawaii.
(12) On November 23, 1993, Public Law 103-150 (107
Stat. 1510) (commonly known as the Apology Resolution)
was enacted into law, extending an apology on behalf of
the United States to the Native people of Hawaii for
the United States role in the overthrow of the Kingdom
of Hawaii.
(13) The Apology Resolution acknowledges that the
overthrow of the Kingdom of Hawaii occurred with the
active participation of agents and citizens of the
United States and further acknowledges that the Native
Hawaiian people never directly relinquished their
claims to their inherent sovereignty as a people over
their national lands to the United States, either
through their monarchy or through a plebiscite or
referendum.
(14) The Apology Resolution expresses the
commitment of Congress and the President to acknowledge
the ramifications of the overthrow of the Kingdom of
Hawaii and to support reconciliation efforts between
the United States and Native Hawaiians; and to have
Congress and the President, through the President's
designated officials, consult with Native Hawaiians on
the reconciliation process as called for under the
Apology Resolution.
(15) Despite the overthrow of the Hawaiian
government, Native Hawaiians have continued to maintain
their separate identity as a distinct native community
through the formation of cultural, social, and
political institutions, and to give expression to their
rights as native people to self-determination and self-
governance as evidenced through their participation in
the Office of Hawaiian Affairs.
(16) Native Hawaiians also maintain a distinct
Native Hawaiian community through the provision of
governmental services to Native Hawaiians, including
the provision of health care services, educational
programs, employment and training programs, children's
services, conservation programs, fish and wildlife
protection, agricultural programs, native language
immersion programs and native language immersion
schools from kindergarten through high school, as well
as college and master's degree programs in native
language immersion instruction, and traditional justice
programs, and by continuing their efforts to enhance
Native Hawaiian self-determination and local control.
(17) Native Hawaiians are actively engaged in
Native Hawaiian cultural practices, traditional
agricultural methods, fishing and subsistence
practices, maintenance of cultural use areas and sacred
sites, protection of burial sites, and the exercise of
their traditional rights to gather medicinal plants and
herbs, and food sources.
(18) The Native Hawaiian people wish to preserve,
develop, and transmit to future Native Hawaiian
generations their ancestral lands and Native Hawaiian
political and cultural identity in accordance with
their traditions, beliefs, customs and practices,
language, and social and political institutions, and to
achieve greater self-determination over their own
affairs.
(19) This Act provides for a process within the
framework of Federal law for the Native Hawaiian people
to exercise their inherent rights as a distinct
aboriginal, indigenous, native community to reorganize
a Native Hawaiian government for the purpose of giving
expression to their rights as native people to self-
determination and self-governance.
(20) The United States has declared that--
(A) the United States has a special
responsibility for the welfare of the native
peoples of the United States, including Native
Hawaiians;
(B) Congress has identified Native
Hawaiians as a distinct indigenous group within
the scope of its Indian affairs power, and has
enacted dozens of statutes on their behalf
pursuant to its recognized trust
responsibility; and
(C) Congress has also delegated broad
authority to administer a portion of the
Federal trust responsibility to the State of
Hawaii.
(21) The United States has recognized and
reaffirmed the special trust relationship with the
Native Hawaiian people through--
(A) the enactment of the Act entitled ``An
Act to provide for the admission of the State
of Hawaii into the Union'', approved March 18,
1959 (Public Law 86-3; 73 Stat. 4) by--
(i) ceding to the State of Hawaii
title to the public lands formerly held
by the United States, and mandating
that those lands be held in public
trust for five purposes, one of which
is for the betterment of the conditions
of Native Hawaiians; and
(ii) transferring the United States
responsibility for the administration
of the Hawaiian Home Lands to the State
of Hawaii, but retaining the authority
to enforce the trust, including the
exclusive right of the United States to
consent to any actions affecting the
lands which comprise the corpus of the
trust and any amendments to the
Hawaiian Homes Commission Act, 1920 (42
Stat. 108, chapter 42) that are enacted
by the legislature of the State of
Hawaii affecting the beneficiaries
under the Act.
(22) The United States continually has recognized
and reaffirmed that--
(A) Native Hawaiians have a cultural,
historic, and land-based link to the
aboriginal, native people who exercised
sovereignty over the Hawaiian Islands;
(B) Native Hawaiians have never
relinquished their claims to sovereignty or
their sovereign lands;
(C) the United States extends services to
Native Hawaiians because of their unique status
as the aboriginal, native people of a once
sovereign nation with whom the United States
has a political and legal relationship; and
(D) the special trust relationship of
American Indians, Alaska Natives, and Native
Hawaiians to the United States arises out of
their status as aboriginal, indigenous, native
people of the United States.
SEC. 2. DEFINITIONS.
In this Act:
(1) Aboriginal, indigenous, native people.--The
term ``aboriginal, indigenous, native people'' means
those people whom Congress has recognized as the
original inhabitants of the lands and who exercised
sovereignty prior to European contact in the areas that
later became part of the United States.
(2) Adult members.--The term ``adult members''
means those Native Hawaiians who have attained the age
of 18 at the time the Secretary publishes the final
roll, as provided in section 7(a)(3) of this Act.
(3) Apology resolution.--The term ``Apology
Resolution'' means Public Law 103-150 (107 Stat. 1510),
a joint resolution offering an apology to Native
Hawaiians on behalf of the United States for the
participation of agents of the United States in the
January 17, 1893 overthrow of the Kingdom of Hawaii.
(4) Ceded lands.--The term ``ceded lands'' means
those lands which were ceded to the United States by
the Republic of Hawaii under the Joint Resolution to
provide for annexing the Hawaiian Islands to the United
States of July 7, 1898 (30 Stat. 750), and which were
later transferred to the State of Hawaii in the Act
entitled ``An Act to provide for the admission of the
State of Hawaii into the Union'' approved March 18,
1959 (Public Law 86-3; 73 Stat. 4).
(5) Commission.--The term ``Commission'' means the
commission established in section 7 of this Act to
certify that the adult members of the Native Hawaiian
community contained on the roll developed under that
section meet the definition of Native Hawaiian, as
defined in paragraph (7)(A).
(6) Indigenous, native people.--The term
``indigenous, native people'' means the lineal
descendants of the aboriginal, indigenous, native
people of the United States.
(7) Native hawaiian.--
(A) Prior to the recognition by the United
States of a Native Hawaiian government under
the authority of section 7(d)(2) of this Act,
the term ``Native Hawaiian'' means the
indigenous, native people of Hawaii who are the
lineal descendants of the aboriginal,
indigenous, native people who resided in the
islands that now comprise the State of Hawaii
on or before January 1, 1893, and who occupied
and exercised sovereignty in the Hawaiian
archipelago, including the area that now
constitutes the State of Hawaii, and includes
all Native Hawaiians who were eligible in 1921
for the programs authorized by the Hawaiian
Homes Commission Act (42 Stat. 108, chapter 42)
and their lineal descendants.
(B) Following the recognition by the United
States of the Native Hawaiian government under
section 7(d)(2) of this Act, the term ``Native
Hawaiian'' shall have the meaning given to such
term in the organic governing documents of the
Native Hawaiian government.
(8) Native hawaiian government.--The term ``Native
Hawaiian government'' means the citizens of the
government of the Native Hawaiian people that is
recognized by the United States under the authority of
section 7(d)(2) of this Act.
(9) Native hawaiian interim governing council.--The
term ``Native Hawaiian Interim Governing Council''
means the interim governing council that is organized
under section 7(c) of this Act.
(10) Roll.--The term ``roll'' means the roll that
is developed under the authority of section 7(a) of
this Act.
(11) Secretary.--The term ``Secretary'' means the
Secretary of the Interior.
(12) Task force.--The term ``Task Force'' means the
Native Hawaiian Interagency Task Force established
under the authority of section 6 of this Act.
SEC. 3. UNITED STATES POLICY AND PURPOSE.
(a) Policy.--The United States reaffirms that--
(1) Native Hawaiians are a unique and distinct
aboriginal, indigenous, native people, with whom the
United States has a political and legal relationship;
(2) the United States has a special trust
relationship to promote the welfare of Native
Hawaiians;
(3) Congress possesses the authority under the
Constitution to enact legislation to address the
conditions of Native Hawaiians and has exercised this
authority through the enactment of--
(A) the Hawaiian Homes Commission Act, 1920
(42 Stat. 108, chapter 42);
(B) the Act entitled ``An Act to provide
for the admission of the State of Hawaii into
the Union'', approved March 18, 1959 (Public
Law 86-3; 73 Stat. 4); and
(C) more than 150 other Federal laws
addressing the conditions of Native Hawaiians;
(4) Native Hawaiians have--
(A) an inherent right to autonomy in their
internal affairs;
(B) an inherent right of self-determination
and self-governance;
(C) the right to reorganize a Native
Hawaiian government; and
(D) the right to become economically self-
sufficient; and
(5) the United States shall continue to engage in a
process of reconciliation and political relations with
the Native Hawaiian people.
(b) Purpose.--It is the intent of Congress that the purpose
of this Act is to provide a process for the reorganization of a
Native Hawaiian government and for the recognition by the
United States of the Native Hawaiian government for purposes of
continuing a government-to-government relationship.
SEC. 4. ESTABLISHMENT OF THE UNITED STATES OFFICE FOR NATIVE HAWAIIAN
AFFAIRS.
(a) In General.--There is established within the Office of
the Secretary the United States Office for Native Hawaiian
Affairs.
(b) Duties of the Office.--The United States Office for
Native Hawaiian Affairs shall--
(1) effectuate and coordinate the special trust
relationship between the Native Hawaiian people and the
United States through the Secretary, and with all other
Federal agencies;
(2) upon the recognition of the Native Hawaiian
government by the United States as provided for in
section 7(d)(2) of this Act, effectuate and coordinate
the special trust relationship between the Native
Hawaiian government and the United States through the
Secretary, and with all other Federal agencies;
(3) fully integrate the principle and practice of
meaningful, regular, and appropriate consultation with
the Native Hawaiian people by providing timely notice
to, and consulting with the Native Hawaiian people
prior to taking any actions that may affect traditional
or current Native Hawaiian practices and matters that
may have the potential to significantly or uniquely
affect Native Hawaiian resources, rights, or lands, and
upon the recognition of the Native Hawaiian government
as provided for in section 7(d)(2) of this Act, fully
integrate the principle and practice of meaningful,
regular, and appropriate consultation with the Native
Hawaiian government by providing timely notice to, and
consulting with the Native Hawaiian people and the
Native Hawaiian government prior to taking any actions
that may have the potential to significantly affect
Native Hawaiian resources, rights, or lands;
(4) consult with the Native Hawaiian Interagency
Task Force, other Federal agencies, and with relevant
agencies of the State of Hawaii on policies, practices,
and proposed actions affecting Native Hawaiian
resources, rights, or lands;
(5) be responsible for the preparation and
submittal to the Committee on Indian Affairs of the
Senate, the Committee on Energy and Natural Resources
of the Senate, and the Committee on Resources of the
House of Representatives of an annual report detailing
the activities of the Interagency Task Force
established under section 6 of this Act that are
undertaken with respect to the continuing process of
reconciliation and to effect meaningful consultation
with the Native Hawaiian people and the Native Hawaiian
government and providing recommendations for any
necessary changes to existing Federal statutes or
regulations promulgated under the authority of Federal
law;
(6) be responsible for continuing the process of
reconciliation with the Native Hawaiian people, and
upon the recognition of the Native Hawaiian government
by the United States as provided for in section 7(d)(2)
of this Act, be responsible for continuing the process
of reconciliation with the Native Hawaiian government;
and
(7) assist the Native Hawaiian people in
facilitating a process for self-determination,
including but not limited to the provision of technical
assistance in the development of the roll under section
7(a) of this Act, the organization of the Native
Hawaiian Interim Governing Council as provided for in
section 7(c) of this Act, and the recognition of the
Native Hawaiian government as provided for in section
7(d) of this Act.
(c) Authority.--The United States Office for Native
Hawaiian Affairs is authorized to enter into a contract with or
make grants for the purposes of the activities authorized or
addressed in section 7 of this Act for a period of 3 years from
the date of the enactment of this Act.
SEC. 5. DESIGNATION OF DEPARTMENT OF JUSTICE REPRESENTATIVE.
The Attorney General shall designate an appropriate
official within the Department of Justice to assist the United
States Office for Native Hawaiian Affairs in the implementation
and protection of the rights of Native Hawaiians and their
political, legal, and trust relationship with the United
States, and upon the recognition of the Native Hawaiian
government as provided for in section 7(d)(2) of this Act, in
the implementation and protection of the rights of the Native
Hawaiian government and its political, legal, and trust
relationship with the United States.
SEC. 6. NATIVE HAWAIIAN INTERAGENCY TASK FORCE.
(a) Establishment.--There is established an interagency
task force to be known as the ``Native Hawaiian Interagency
Task Force''.
(b) Composition.--The Task Force shall be composed of
officials, to be designated by the President, from--
(1) each Federal agency that establishes or
implements policies that affect Native Hawaiians or
whose actions may significantly or uniquely impact on
Native Hawaiian resources, rights, or lands;
(2) the United States Office for Native Hawaiian
Affairs established under section 4 of this Act; and
(3) the Executive Office of the President.
(c) Lead Agencies.--The Department of the Interior and the
Department of Justice shall serve as the lead agencies of the
Task Force, and meetings of the Task Force shall be convened at
the request of either of the lead agencies.
(d) Co-Chairs.--The Task Force representative of the United
States Office for Native Hawaiian Affairs established under the
authority of section 4 of this Act and the Attorney General's
designee under the authority of section 5 of this Act shall
serve as co-chairs of the Task Force.
(e) Duties.--The responsibilities of the Task Force shall
be--
(1) the coordination of Federal policies that
affect Native Hawaiians or actions by any agency or
agencies of the Federal Government which may
significantly or uniquely impact on Native Hawaiian
resources, rights, or lands;
(2) to assure that each Federal agency develops a
policy on consultation with the Native Hawaiian people,
and upon recognition of the Native Hawaiian government
by the United States as provided in section 7(d)(2) of
this Act, consultation with the Native Hawaiian
government; and
(3) to assure the participation of each Federal
agency in the development of the report to Congress
authorized in section 4(b)(5) of this Act.
SEC. 7. PROCESS FOR THE DEVELOPMENT OF A ROLL FOR THE ORGANIZATION OF A
NATIVE HAWAIIAN INTERIM GOVERNING COUNCIL, FOR THE
ORGANIZATION OF A NATIVE HAWAIIAN INTERIM GOVERNING
COUNCIL AND A NATIVE HAWAIIAN GOVERNMENT, AND FOR
THE RECOGNITION OF THE NATIVE HAWAIIAN GOVERNMENT.
(a) Roll.--
(1) Preparation of roll.--The United States Office
for Native Hawaiian Affairs shall assist the adult
members of the Native Hawaiian community who wish to
participate in the reorganization of a Native Hawaiian
government in preparing a roll for the purpose of the
organization of a Native Hawaiian Interim Governing
Council. The roll shall include the names of the--
(A) adult members of the Native Hawaiian
community who wish to become citizens of a
Native Hawaiian government and who are--
(i) the lineal descendants of the
aboriginal, indigenous, native people
who resided in the islands that now
comprise the State of Hawaii on or
before January 1, 1893, and who
occupied and exercised sovereignty in
the Hawaiian archipelago; or
(ii) Native Hawaiians who were
eligible in 1921 for the programs
authorized by the Hawaiian Homes
Commission Act (42 Stat. 108, chapter
42) or their lineal descendants; and
(B) the children of the adult members
listed on the roll prepared under this
subsection.
(2) Certification and submission.--
(A) Commission.--
(i) In general.--There is
authorized to be established a
Commission to be composed of nine
members for the purpose of certifying
that the adult members of the Native
Hawaiian community on the roll meet the
definition of Native Hawaiian, as
defined in section 2(7)(A) of this Act.
(ii) Membership.--
(I) Appointment.--The
Secretary shall appoint the
members of the Commission in
accordance with subclause (II).
Any vacancy on the Commission
shall not affect its powers and
shall be filled in the same
manner as the original
appointment.
(II) Requirements.--The
members of the Commission shall
be Native Hawaiian, as defined
in section 2(7)(A) of this Act,
and shall have expertise in the
certification of Native
Hawaiian ancestry.
(III) Congressional
submission of suggested
candidates.--In appointing
members of the Commission, the
Secretary may choose such
members from among--
(aa) five suggested
candidates submitted by
the Majority Leader of
the Senate and the
Minority Leader of the
Senate from a list of
candidates provided to
such leaders by the
Chairman and Vice
Chairman of the
Committee on Indian
Affairs of the Senate;
and
(bb) four suggested
candidates submitted by
the Speaker of the
House of
Representatives and the
Minority Leader of the
House of
Representatives from a
list provided to the
Speaker and the
Minority Leader by the
Chairman and Ranking
member of the Committee
on Resources of the
House of
Representatives.
(iii) Expenses.--Each member of the
Commission shall be allowed travel
expenses, including per diem in lieu of
subsistence, at rates authorized for
employees of agencies under subchapter
I of chapter 57 of title 5, United
States Code, while away from their
homes or regular places of business in
the performance of services for the
Commission.
(B) Certification.--The Commission shall
certify that the individuals listed on the roll
developed under the authority of this
subsection are Native Hawaiians, as defined in
section 2(7)(A) of this Act.
(3) Secretary.--
(A) Certification.--The Secretary shall
review the Commission's certification of the
membership roll and determine whether it is
consistent with applicable Federal law,
including the special trust relationship
between the United States and the indigenous,
native people of the United States.
(B) Publication.--Upon making the
determination authorized in subparagraph (A),
the Secretary shall publish a final roll.
(C) Appeal.--
(i) Establishment of mechanism.--
The Secretary is authorized to
establish a mechanism for an appeal of
the Commission's determination as it
concerns--
(I) the exclusion of the
name of a person who meets the
definition of Native Hawaiian,
as defined in section 2(7)(A)
of this Act, from the roll; or
(II) a challenge to the
inclusion of the name of a
person on the roll on the
grounds that the person does
not meet the definition of
Native Hawaiian, as so defined.
(ii) Publication; update.--The
Secretary shall publish the final roll
while appeals are pending, and shall
update the final roll and the
publication of the final roll upon the
final disposition of any appeal.
(D) Failure to act.--If the Secretary fails
to make the certification authorized in
subparagraph (A) within 90 days of the date
that the Commission submits the membership roll
to the Secretary, the certification shall be
deemed to have been made, and the Commission
shall publish the final roll.
(4) Effect of publication.--The publication of the
final roll shall serve as the basis for the eligibility
of adult members listed on the roll to participate in
all referenda and elections associated with the
organization of a Native Hawaiian Interim Governing
Council and the Native Hawaiian government.
(b) Recognition of Rights.--The right of the Native
Hawaiian people to organize for their common welfare and to
adopt appropriate organic governing documents is hereby
recognized by the United States.
(c) Organization of the Native Hawaiian Interim Governing
Council.--
(1) Organization.--The adult members listed on the
roll developed under the authority of subsection (a)
are authorized to--
(A) develop criteria for candidates to be
elected to serve on the Native Hawaiian Interim
Governing Council;
(B) determine the structure of the Native
Hawaiian Interim Governing Council; and
(C) elect members to the Native Hawaiian
Interim Governing Council.
(2) Election.--Upon the request of the adult
members listed on the roll developed under the
authority of subsection (a), the United States Office
for Native Hawaiian Affairs may assist the Native
Hawaiian community in holding an election by secret
ballot (absentee and mail balloting permitted), to
elect the membership of the Native Hawaiian Interim
Governing Council.
(3) Powers.--
(A) In general.--The Native Hawaiian
Interim Governing Council is authorized to
represent those on the roll in the
implementation of this Act and shall have no
powers other than those given to it in
accordance with this Act.
(B) Funding.--The Native Hawaiian Interim
Governing Council is authorized to enter into a
contract or grant with any Federal agency,
including but not limited to, the United States
Office for Native Hawaiian Affairs within the
Department of the Interior and the
Administration for Native Americans within the
Department of Health and Human Services, to
carry out the activities set forth in
subparagraph (C).
(C) Activities.--
(i) In general.--The Native
Hawaiian Interim Governing Council is
authorized to conduct a referendum of
the adult members listed on the roll
developed under the authority of
subsection (a) for the purpose of
determining (but not limited to) the
following:
(I) The proposed elements
of the organic governing
documents of a Native Hawaiian
government.
(II) The proposed powers
and authorities to be exercised
by a Native Hawaiian
government, as well as the
proposed privileges and
immunities of a Native Hawaiian
government.
(III) The proposed civil
rights and protection of such
rights of the citizens of a
Native Hawaiian government and
all persons subject to the
authority of a Native Hawaiian
government.
(ii) Development of organic
governing documents.--Based upon the
referendum, the Native Hawaiian Interim
Governing Council is authorized to
develop proposed organic governing
documents for a Native Hawaiian
government.
(iii) Distribution.--The Native
Hawaiian Interim Governing Council is
authorized to distribute to all adult
members of those listed on the roll, a
copy of the proposed organic governing
documents, as drafted by the Native
Hawaiian Interim Governing Council,
along with a brief impartial
description of the proposed organic
governing documents.
(iv) Consultation.--The Native
Hawaiian Interim Governing Council is
authorized to freely consult with those
members listed on the roll concerning
the text and description of the
proposed organic governing documents.
(D) Elections.--
(i) In general.--The Native
Hawaiian Interim Governing Council is
authorized to hold elections for the
purpose of ratifying the proposed
organic governing documents, and upon
ratification of the organic governing
documents, to hold elections for the
officers of the Native Hawaiian
government.
(ii) Assistance.--Upon the request
of the Native Hawaiian Interim
Governing Council, the United States
Office of Native Hawaiian Affairs may
assist the Council in conducting such
elections.
(4) Termination.--The Native Hawaiian Interim
Governing Council shall have no power or authority
under this Act after the time at which the duly elected
officers of the Native Hawaiian government take office.
(d) Recognition of the Native Hawaiian Government.--
(1) Process for recognition.--
(A) Submittal of organic governing
documents.--The duly elected officers of the
Native Hawaiian government shall submit the
organic governing documents of the Native
Hawaiian government to the Secretary.
(B) Certifications.--Within 90 days of the
date that the duly elected officers of the
Native Hawaiian government submit the organic
governing documents to the Secretary, the
Secretary shall certify that the organic
governing documents--
(i) were adopted by a majority vote
of the adult members listed on the roll
prepared under the authority of
subsection (a);
(ii) are consistent with applicable
Federal law and the special trust
relationship between the United States
and the indigenous native people of the
United States;
(iii) provide for the exercise of
those governmental authorities that are
recognized by the United States as the
powers and authorities that are
exercised by other governments
representing the indigenous, native
people of the United States;
(iv) provide for the protection of
the civil rights of the citizens of the
Native Hawaiian government and all
persons subject to the authority of the
Native Hawaiian government, and to
assure that the Native Hawaiian
government exercises its authority
consistent with the requirements of
section 202 of the Act of April 11,
1968 (25 U.S.C. 1302);
(v) prevent the sale, disposition,
lease, or encumbrance of lands,
interests in lands, or other assets of
the Native Hawaiian government without
the consent of the Native Hawaiian
government;
(vi) establish the criteria for
citizenship in the Native Hawaiian
government; and
(vii) provide authority for the
Native Hawaiian government to negotiate
with Federal, State, and local
governments, and other entities.
(C) Failure to act.--If the Secretary fails
to act within 90 days of the date that the duly
elected officers of the Native Hawaiian
government submitted the organic governing
documents of the Native Hawaiian government to
the Secretary, the certifications authorized in
subparagraph (B) shall be deemed to have been
made.
(D) Resubmission in case of noncompliance
with federal law.--
(i) Resubmission by the
secretary.--If the Secretary determines
that the organic governing documents,
or any part thereof, are not consistent
with applicable Federal law, the
Secretary shall resubmit the organic
governing documents to the duly elected
officers of the Native Hawaiian
government along with a justification
for each of the Secretary's findings as
to why the provisions are not
consistent with such law.
(ii) Amendment and resubmission by
the native hawaiian government.--If the
organic governing documents are
resubmitted to the duly elected
officers of the Native Hawaiian
government by the Secretary under
clause (i), the duly elected officers
of the Native Hawaiian government
shall--
(I) amend the organic
governing documents to ensure
that the documents comply with
applicable Federal law; and
(II) resubmit the amended
organic governing documents to
the Secretary for certification
in accordance with
subparagraphs (B) and (C).
(2) Federal recognition.--
(A) Recognition.--Notwithstanding any other
provision of law, upon the election of the
officers of the Native Hawaiian government and
the certifications (or deemed certifications)
by the Secretary authorized in paragraph (1),
Federal recognition is hereby extended to the
Native Hawaiian government as the
representative governing body of the Native
Hawaiian people.
(B) No diminishment of rights or
privileges.--Nothing contained in this Act
shall diminish, alter, or amend any existing
rights or privileges enjoyed by the Native
Hawaiian people which are not inconsistent with
the provisions of this Act.
SEC. 8. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated such sums as may be
necessary to carry out the activities authorized in this Act.
SEC. 9. REAFFIRMATION OF DELEGATION OF FEDERAL AUTHORITY; NEGOTIATIONS.
(a) Reaffirmation.--The delegation by the United States of
authority to the State of Hawaii to address the conditions of
Native Hawaiians contained in the Act entitled ``An Act to
provide for the admission of the State of Hawaii into the
Union'' approved March 18, 1959 (Public Law 86-3; 73 Stat. 5)
is hereby reaffirmed.
(b) Negotiations.--Upon the Federal recognition of the
Native Hawaiian government pursuant to section 7(d)(2) of this
Act, the United States is authorized to negotiate and enter
into an agreement with the State of Hawaii and the Native
Hawaiian government regarding the transfer of lands, resources,
and assets dedicated to Native Hawaiian use under existing law
as in effect on the date of the enactment of this Act to the
Native Hawaiian government.
SEC. 10. DISCLAIMER.
Nothing in this Act is intended to serve as a settlement of
any claims against the United States, or to affect the rights
of the Native Hawaiian people under international law.
SEC. 11. REGULATIONS.
The Secretary is authorized to make such rules and
regulations and such delegations of authority as the Secretary
deems necessary to carry out the provisions of this Act.
SEC. 12. SEVERABILITY.
In the event that any section or provision of this Act, or
any amendment made by this Act is held invalid, it is the
intent of Congress that the remaining sections or provisions of
this Act, and the amendments made by this Act, shall continue
in full force and effect.
Section 124 includes a technical correction to allow the
use of National Park Service funds for the acquisition of lands
near Saddleback Mountain, Maine for inclusion in the
Appalachian National Scenic Trail.
Section 125 incorporates by reference the text of the
bill S. 2273, the Black Rock Desert-High Rock Canyon Emigrant
Trails National Conservation Area Act of 2000, as passed by the
United States Senate on October 5, 2000. The text of S. 2273 is
as follows:
AN ACT To establish the Black Rock Desert-High Rock Canyon Emigrant
Trails National Conservation Area, and for other purposes.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Black Rock Desert-High Rock
Canyon Emigrant Trails National Conservation Area Act of
2000''.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) The areas of northwestern Nevada known as the
Black Rock Desert and High Rock Canyon contain and
surround the last nationally significant, untouched
segments of the historic California emigrant Trails,
including wagon ruts, historic inscriptions, and a
wilderness landscape largely unchanged since the days
of the pioneers.
(2) The relative absence of development in the
Black Rock Desert and High Rock Canyon areas from
emigrant times to the present day offers a unique
opportunity to capture the terrain, sights, and
conditions of the overland trails as they were
experienced by the emigrants and to make available to
both present and future generations of Americans the
opportunity of experiencing emigrant conditions in an
unaltered setting.
(3) The Black Rock Desert and High Rock Canyon
areas are unique segments of the Northern Great Basin
and contain broad representation of the Great Basin's
land forms and plant and animal species, including
golden eagles and other birds of prey, sage grouse,
mule deer, pronghorn antelope, bighorn sheep, free
roaming horses and burros, threatened fish and
sensitive plants.
(4) The Black Rock-High Rock region contains a
number of cultural and natural resources that have been
declared eligible for National Historic Landmark and
Natural Landmark status, including a portion of the
1843-44 John Charles Fremont exploration route, the
site of the death of Peter Lassen, early military
facilities, and examples of early homesteading and
mining.
(5) The archeological, paleontological, and
geographical resources of the Black Rock-High Rock
region include numerous prehistoric and historic Native
American sites, wooly mammoth sites, some of the
largest natural potholes of North America, and a
remnant dry Pleistocene lakebed (playa) where the
curvature of the Earth may be observed.
(6) The two large wilderness mosaics that frame the
conservation area offer exceptional opportunities for
solitude and serve to protect the integrity of the
viewshed of the historic emigrant trails.
(7) Public lands in the conservation area have been
used for domestic livestock grazing for over a century,
with resultant benefits to community stability and
contributions to the local and State economies. It has
not been demonstrated that continuation of this use
would be incompatible with appropriate protection and
sound management of the resource values of these lands;
therefore, it is expected that such grazing will
continue in accordance with the management plan for the
conservation area and other applicable laws and
regulations.
(8) The Black Rock Desert playa is a unique natural
resource that serves as the primary destination for the
majority of visitors to the conservation area,
including visitors associated with large-scale
permitted events. It is expected that such permitted
events will continue to be administered in accordance
with the management plan for the conservation area and
other applicable laws and regulations.
SEC. 3. DEFINITIONS.
As used in this Act:
(1) The term ``Secretary'' means the Secretary of
the Interior.
(2) The term ``public lands'' has the meaning
stated in section 103(e) of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1702(e)).
(3) The term ``conservation area'' means the Black
Rock Desert-High Rock Canyon Emigrant Trails National
Conservation Area established pursuant to section 4 of
this Act.
SEC. 4. ESTABLISHMENT OF THE CONSERVATION AREA.
(a) Establishment and Purposes.--In order to conserve,
protect, and enhance for the benefit and enjoyment of present
and future generations the unique and nationally important
historical, cultural, paleontological, scenic, scientific,
biological, educational, wildlife, riparian, wilderness,
endangered species, and recreational values and resources
associated with the Applegate-Lassen and Nobles Trails
corridors and surrounding areas, there is hereby established
the Black Rock Desert-High Rock Canyon Emigrant Trails National
Conservation Area in the State of Nevada.
(b) Areas Included.--The conservation area shall consist of
approximately 797,100 acres of public lands as generally
depicted on the map entitled ``Black Rock Desert Emigrant Trail
National Conservation Area'' and dated July 19, 2000.
(c) Maps and Legal Description.--As soon as practicable
after the date of the enactment of this Act, the Secretary
shall submit to Congress a map and legal description of the
conservation area. The map and legal description shall have the
same force and effect as if included in this Act, except the
Secretary may correct clerical and typographical errors in such
map and legal description. Copies of the map and legal
description shall be on file and available for public
inspection in the appropriate offices of the Bureau of Land
Management.
SEC. 5. MANAGEMENT.
(a) Management.--The Secretary, acting through the Bureau
of Land Management, shall manage the conservation area in a
manner that conserves, protects and enhances its resources and
values, including those resources and values specified in
subsection 4(a), in accordance with this Act, the Federal Land
Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.), and
other applicable provisions of law.
(b) Access.--
(1) In general.--The Secretary shall maintain
adequate access for the reasonable use and enjoyment of
the conservation area.
(2) Private land.--The Secretary shall provide
reasonable access to privately owned land or interests
in land within the boundaries of the conservation area.
(3) Existing public roads.--The Secretary is
authorized to maintain existing public access within
the boundaries of the conservation area in a manner
consistent with the purposes for which the conservation
area was established.
(c) Uses.--
(1) In general.--The Secretary shall only allow
such uses of the conservation area as the Secretary
finds will further the purposes for which the
conservation area is established.
(2) Off-highway vehicle use.--Except where needed
for administrative purposes or to respond to an
emergency, use of motorized vehicles in the
conservation area shall be permitted only on roads and
trails and in other areas designated for use of
motorized vehicles as part of the management plan
prepared pursuant to subsection (e).
(3) Permitted events.--The Secretary may continue
to permit large-scale events in defined, low impact
areas of the Black Rock Desert playa in the
conservation area in accordance with the management
plan prepared pursuant to subsection (e).
(d) Hunting, Trapping, and Fishing.--Nothing in this Act
shall be deemed to diminish the jurisdiction of the State of
Nevada with respect to fish and wildlife management, including
regulation of hunting and fishing, on public lands within the
conservation area.
(e) Management Plan.--Within three years following the date
of enactment of this Act, the Secretary shall develop a
comprehensive resource management plan for the long-term
protection and management of the conservation area. The plan
shall be developed with full public participation and shall
describe the appropriate uses and management of the
conservation area consistent with the provisions of this Act.
The plan may incorporate appropriate decisions contained in any
current management or activity plan for the area and may use
information developed in previous studies of the lands within
or adjacent to the conservation area.
(f) Grazing.--Where the Secretary of the Interior currently
permits livestock grazing in the conservation area, such
grazing shall be allowed to continue subject to all applicable
laws, regulations, and executive orders.
(g) Visitor Service Facilities.--The Secretary is
authorized to establish, in cooperation with other public or
private entities as the Secretary may deem appropriate, visitor
service facilities for the purpose of providing information
about the historical, cultural, ecological, recreational, and
other resources of the conservation area.
SEC. 6. WITHDRAWAL.
(a) In General.--Subject to valid existing rights, all
Federal lands within the conservation area and all lands and
interests therein which are hereafter acquired by the United
States are hereby withdrawn from all forms of entry,
appropriation, or disposal under the public land laws, from
location, entry, and patent under the mining laws, from
operation of the mineral leasing and geothermal leasing laws
and from the minerals materials laws and all amendments
thereto.
SEC. 7. NO BUFFER ZONES.
The Congress does not intend for the establishment of the
conservation area to lead to the creation of protective
perimeters or buffer zones around the conservation area. The
fact that there may be activities or uses on lands outside the
conservation area that would not be permitted in the
conservation area shall not preclude such activities or uses on
such lands up to the boundary of the conservation area
consistent with other applicable laws.
SEC. 8. WILDERNESS.
(a) Designation.--In furtherance of the purposes of the
Wilderness Act of 1964 (16 U.S.C. 1131 et seq.), the following
lands in the State of Nevada are designated as wilderness, and,
therefore, as components of the National Wilderness
Preservation System:
(1) Certain lands in the Black Rock Desert
Wilderness Study Area comprised of approximately
315,700 acres, as generally depicted on a map entitled
``Black Rock Desert Wilderness--Proposed'' and dated
July 19, 2000, and which shall be known as the Black
Rock Desert Wilderness.
(2) Certain lands in the Pahute Peak Wilderness
Study Area comprised of approximately 57,400 acres, as
generally depicted on a map entitled ``Pahute Peak
Wilderness--Proposed'' and dated July 19, 2000, and
which shall be known as the Pahute Peak Wilderness.
(3) Certain lands in the North Black Rock Range
Wilderness Study Area comprised of approximately 30,800
acres, as generally depicted on a map entitled ``North
Black Rock Range Wilderness--Proposed'' and dated July
19, 2000, and which shall be known as the North Black
Rock Range Wilderness.
(4) Certain lands in the East Fork High Rock Canyon
Wilderness Study Area comprised of approximately 52,800
acres, as generally depicted on a map entitled ``East
Fork High Rock Canyon Wilderness--Proposed'' and dated
July 19, 2000, and which shall be known as the East
Fork High Rock Canyon Wilderness.
(5) Certain lands in the High Rock Lake Wilderness
Study Area comprised of approximately 59,300 acres, as
generally depicted on a map entitled ``High Rock Lake
Wilderness--Proposed'' and dated July 19, 2000, and
which shall be known as the High Rock Lake Wilderness.
(6) Certain lands in the Little High Rock Canyon
Wilderness Study Area comprised of approximately 48,700
acres, as generally depicted on a map entitled ``Little
High Rock Canyon Wilderness--Proposed'' and dated July
19, 2000, and which shall be known as the Little High
Rock Canyon Wilderness.
(7) Certain lands in the High Rock Canyon
Wilderness Study Area and Yellow Rock Canyon Wilderness
Study Area comprised of approximately 46,600 acres, as
generally depicted on a map entitled ``High Rock Canyon
Wilderness--Proposed'' and dated July 19, 2000, and
which shall be known as the High Rock Canyon
Wilderness.
(8) Certain lands in the Calico Mountains
Wilderness Study Area comprised of approximately 65,400
acres, as generally depicted on a map entitled ``Calico
Mountains Wilderness--Proposed'' and dated July 19,
2000, and which shall be known as the Calico Mountains
Wilderness.
(9) Certain lands in the South Jackson Mountains
Wilderness Study Area comprised of approximately 56,800
acres, as generally depicted on a map entitled ``South
Jackson Mountains Wilderness--Proposed'' and dated July
19, 2000, and which shall be known as the South Jackson
Mountains Wilderness.
(10) Certain lands in the North Jackson Mountains
Wilderness Study Area comprised of approximately 24,000
acres, as generally depicted on a map entitled ``North
Jackson Mountains Wilderness--Proposed'' and dated July
19, 2000, and which shall be known as the North Jackson
Mountains Wilderness.
(b) Administration of Wilderness Areas.--Subject to valid
existing rights, each wilderness area designated by this Act
shall be administered by the Secretary in accordance with the
provisions of the Wilderness Act, except that any reference in
such provisions to the effective date of the Wilderness Act
shall be deemed to be a reference to the date of enactment of
this Act and any reference to the Secretary of Agriculture
shall be deemed to be a reference to the Secretary of the
Interior.
(c) Maps and Legal Description.--As soon as practicable
after the date of the enactment of this Act, the Secretary
shall submit to Congress a map and legal description of the
wilderness areas designated under this Act. The map and legal
description shall have the same force and effect as if included
in this Act, except the Secretary may correct clerical and
typographical errors in such map and legal description. Copies
of the map and legal description shall be on file and available
for public inspection in the appropriate offices of the Bureau
of Land Management.
(d) Grazing.--Within the wilderness areas designated under
subsection (a), the grazing of livestock, where established
prior to the date of enactment of this Act, shall be permitted
to continue subject to such reasonable regulations, policies,
and practices as the Secretary deems necessary, as long as such
regulations, policies, and practices fully conform with and
implement the intent of Congress regarding grazing in such
areas as such intent is expressed in the Wilderness Act and
section 101(f) of Public Law 101-628.
SEC. 9. AUTHORIZATION OF APPROPRIATIONS.
There is hereby authorized to be appropriated such sums as
may be necessary to carry out the provisions of this Act.
Section 126 increases the annual authorized funding level
for the Illinois and Michigan Canal National Heritage Corridor
Commission from $250,000 to $1,000,000.
Section 127. The bill S. 2885, the Jamestown 400th
Commemoration Commission Act of 2000, as passed in the United
States Senate on October 5, 2000, is incorporated by reference.
The text of S. 2885 is as follows:
AN ACT TO establish the Jamestown 400th Commemoration Commission, and
for other purposes
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Jamestown 400th
Commemoration Commission Act of 2000''.
SEC. 2. FINDINGS AND PURPOSE.
(a) Findings.--Congress finds that--
(1) the founding of the colony at Jamestown,
Virginia in 1607, the first permanent English colony in
the New World, and the capital of Virginia for 92
years, has major significance in the history of the
United States;
(2) the settlement brought people from throughout
the Atlantic Basin together to form a multicultural
society, including English, other Europeans, Native
Americans, and Africans;
(3) the economic, political, religious, and social
institutions that developed during the first 9 decades
of the existence of Jamestown continue to have profound
effects on the United States, particularly in English
common law and language, cross cultural relationships,
and economic structure and status;
(4) the National Park Service, the Association for
the Preservation of Virginia Antiquities, and the
Jamestown-Yorktown Foundation of the Commonwealth of
Virginia collectively own and operate significant
resources related to the early history of Jamestown;
and
(5) in 1996--
(A) the Commonwealth of Virginia designated
the Jamestown-Yorktown Foundation as the State
agency responsible for planning and
implementing the Commonwealth's portion of the
commemoration of the 400th anniversary of the
founding of the Jamestown settlement;
(B) the Foundation created the Celebration
2007 Steering Committee, known as the Jamestown
2007 Steering Committee; and
(C) planning for the commemoration began.
(b) Purpose.--The purpose of this Act is to establish the
Jamestown 400th Commemoration Commission to--
(1) ensure a suitable national observance of the
Jamestown 2007 anniversary by complementing the
programs and activities of the Commonwealth of
Virginia;
(2) cooperate with and assist the programs and
activities of the State in observance of the Jamestown
2007 anniversary;
(3) assist in ensuring that Jamestown 2007
observances provide an excellent visitor experience and
beneficial interaction between visitors and the natural
and cultural resources of the Jamestown sites;
(4) assist in ensuring that the Jamestown 2007
observances are inclusive and appropriately recognize
the experiences of all people present in 17th century
Jamestown;
(5) provide assistance to the development of
Jamestown-related programs and activities;
(6) facilitate international involvement in the
Jamestown 2007 observances;
(7) support and facilitate marketing efforts for a
commemorative coin, stamp, and related activities for
the Jamestown 2007 observances; and
(8) assist in the appropriate development of
heritage tourism and economic benefits to the United
States.
SEC. 3. DEFINITIONS.
In this Act:
(1) Commemoration.--The term ``commemoration''
means the commemoration of the 400th anniversary of the
founding of the Jamestown settlement.
(2) Commission.--The term ``Commission'' means the
Jamestown 400th Commemoration Commission established by
section 4(a).
(3) Governor.--The term ``Governor'' means the
Governor of Virginia.
(4) Secretary.--The term ``Secretary'' means the
Secretary of the Interior.
(5) State.--The term ``State'' means the
Commonwealth of Virginia, including agencies and
entities of the Commonwealth.
SEC. 4. JAMESTOWN 400TH COMMEMORATION COMMISSION.
(a) In General.--There is established a commission to be
known as the ``Jamestown 400th Commemoration Commission''.
(b) Membership.--
(1) In general.--The Commission shall be composed
of 15 members, of whom--
(A) 4 members shall be appointed by the
Secretary, taking into consideration the
recommendations of the Chairperson of the
Jamestown 2007 Steering Committee;
(B) 4 members shall be appointed by the
Secretary, taking into consideration the
recommendations of the Governor;
(C) 2 members shall be employees of the
National Park Service, of which--
(i) 1 shall be the Director of the
National Park Service (or a designee);
and
(ii) 1 shall be an employee of the
National Park Service having experience
relevant to the commemoration, to be
appointed by the Secretary; and
(D) 5 members shall be individuals that
have an interest in, support for, and expertise
appropriate to, the commemoration, to be
appointed by the Secretary.
(2) Term; vacancies.--
(A) Term.--A member of the Commission shall
be appointed for the life of the Commission.
(B) Vacancies.--
(i) In general.--A vacancy on the
Commission shall be filled in the same
manner in which the original
appointment was made.
(ii) Partial term.--A member
appointed to fill a vacancy on the
Commission shall serve for the
remainder of the term for which the
predecessor of the member was
appointed.
(3) Meetings.--
(A) In general.--The Commission shall
meet--
(i) at least twice each year; or
(ii) at the call of the Chairperson
or the majority of the members of the
Commission.
(B) Initial meeting.--Not later than 30
days after the date on which all members of the
Commission have been appointed, the Commission
shall hold the initial meeting of the
Commission.
(4) Voting.--
(A) In general.--The Commission shall act
only on an affirmative vote of a majority of
the members of the Commission.
(B) Quorum.--A majority of the Commission
shall constitute a quorum.
(5) Chairperson.--The Secretary shall appoint a
Chairperson of the Commission, taking into
consideration any recommendations of the Governor.
(c) Duties.--
(1) In general.--The Commission shall--
(A) plan, develop, and execute programs and
activities appropriate to commemorate the 400th
anniversary of the founding of Jamestown;
(B) generally facilitate Jamestown-related
activities throughout the United States;
(C) encourage civic, patriotic, historical,
educational, religious, economic, and other
organizations throughout the United States to
organize and participate in anniversary
activities to expand the understanding and
appreciation of the significance of the
founding and early history of Jamestown;
(D) coordinate and facilitate for the
public scholarly research on, publication
about, and interpretation of, Jamestown; and
(E) ensure that the 400th anniversary of
Jamestown provides a lasting legacy and long-
term public benefit by assisting in the
development of appropriate programs and
facilities.
(2) Plans; reports.--
(A) Strategic plan; annual performance
plans.--In accordance with the Government
Performance and Results Act of 1993 (Public Law
103-62; 107 Stat. 285), the Commission shall
prepare a strategic plan and annual performance
plans for the activities of the Commission
carried out under this Act.
(B) Final report.--Not later than September
30, 2008, the Commission shall complete a final
report that contains--
(i) a summary of the activities of
the Commission;
(ii) a final accounting of funds
received and expended by the
Commission; and
(iii) the findings and
recommendations of the Commission.
(d) Powers of the Commission.--The Commission may--
(1) accept donations and make dispersions of money,
personal services, and real and personal property
related to Jamestown and of the significance of
Jamestown in the history of the United States;
(2) appoint such advisory committees as the
Commission determines to be necessary to carry out this
Act;
(3) authorize any member or employee of the
Commission to take any action that the Commission is
authorized to take by this Act;
(4) procure supplies, services, and property, and
make or enter into contracts, leases or other legal
agreements, to carry out this Act (except that any
contracts, leases or other legal agreements made or
entered into by the Commission shall not extend beyond
the date of termination of the Commission);
(5) use the United States mails in the same manner
and under the same conditions as other Federal
agencies;
(6) subject to approval by the Commission, make
grants in amounts not to exceed $10,000 to communities
and nonprofit organizations to develop programs to
assist in the commemoration;
(7) make grants to research and scholarly
organizations to research, publish, or distribute
information relating to the early history of Jamestown;
and
(8) provide technical assistance to States,
localities, and nonprofit organizations to further the
commemoration.
(e) Commission Personnel Matters.--
(1) Compensation of members of the commission.--
(A) In general.--Except as provided in
subparagraph (B), a member of the Commission
shall serve without compensation.
(B) Federal employees.--A member of the
Commission who is an officer or employee of the
Federal Government shall serve without
compensation in addition to the compensation
received for the services of the member as an
officer or employee of the Federal Government.
(C) Travel expenses.--A member of the
Commission shall be allowed travel expenses,
including per diem in lieu of subsistence, at
rates authorized for an employee of an agency
under subchapter I of chapter 57 of title 5,
United States Code, while away from the home or
regular place of business of the member in the
performance of the duties of the Commission.
(2) Staff.--
(A) In general.--The Chairperson of the
Commission may, without regard to the civil
service laws (including regulations), appoint
and terminate an executive director and such
other additional personnel as are necessary to
enable the Commission to perform the duties of
the Commission.
(B) Confirmation of executive director.--
The employment of an executive director shall
be subject to confirmation by the Commission.
(3) Compensation.--
(A) In general.--Except as provided in
subparagraph (B), the Chairperson of the
Commission may fix the compensation of the
executive director and other personnel without
regard to the provisions of chapter 51 and
subchapter III of chapter 53 of title 5, United
States Code, relating to classification of
positions and General Schedule pay rates.
(B) Maximum rate of pay.--The rate of pay
for the executive director and other personnel
shall not exceed the rate payable for level V
of the Executive Schedule under section 5316 of
title 5, United States Code.
(4) Detail of government employees.--
(A) Federal employees.--
(i) In general.--On the request of
the Commission, the head of any Federal
agency may detail, on a reimbursable or
non-reimbursable basis, any of the
personnel of the agency to the
Commission to assist the Commission in
carrying out the duties of the
Commission under this Act.
(ii) Civil service status.--The
detail of an employee under clause (i)
shall be without interruption or loss
of civil service status or privilege.
(B) State employees.--The Commission may--
(i) accept the services of
personnel detailed from States
(including subdivisions of States); and
(ii) reimburse States for services
of detailed personnel.
(5) Volunteer and uncompensated services.--
Notwithstanding section 1342 of title 31, United States
Code, the Commission may accept and use voluntary and
uncompensated services as the Commission determines
necessary.
(6) Support services.--The Director of the National
Park Service shall provide to the Commission, on a
reimbursable basis, such administrative support
services as the Commission may request.
(f) Procurement of Temporary and Intermittent Services.--
The Chairperson of the Commission may procure temporary and
intermittent services in accordance with section 3109(b) of
title 5, United States Code, at rates for individuals that do
not exceed the daily equivalent of the annual rate of basic pay
prescribed for level V of the Executive Schedule under section
5316 of that title.
(g) FACA Nonapplicability.--Section 14(b) of the Federal
Advisory Committee Act (5 U.S.C. App.) shall not apply to the
Commission.
(h) No Effect on Authority.--Nothing in this section
supersedes the authority of the State, the National Park
Service, or the Association for the Preservation of Virginia
Antiquities, concerning the commemoration.
(i) Termination.--The Commission shall terminate on
December 31, 2008.
SEC. 5. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as are
necessary to carry out this Act.
Section 128 provides guidance to the National Park
Service on restricting the use of snowmobiles in units of the
National Park System.
Section 129 extends an agreement, through March 31, 2001,
dealing with seven campsite leases in the Biscayne Bay, Miami/
Dade County area of Florida, collectively known as
``Stiltsville''.
Section 130 authorizes a grant of $1.3 million for the
National Park Service to acquire land in Lower Phalen Creek
near St. Paul, Minnesota for the Mississippi National River and
Recreation Area. The land is for a trail that is being named
after the late Congressman Bruce Vento.
Section 131 authorizes the transfer of funds to the
George Washington's Fredericksburg Foundation, Inc. for a
cooperative agreement to manage Ferry Farm, which was George
Washington's boyhood home.
Section 132 prohibits the Secretary of the Interior from
using funds to pay the salaries or expenses related to the
issuance of a request for proposal related to a light rail
system at Grand Canyon National Park until June 1, 2001. In
addition, the Secretary is directed to report directly to the
Committee prior to any additional action regarding a request
for proposal on alternative transportation options for the
park. These options should include a phase-in period based on
newly updated visitation numbers. The report should also
address using a bus/transit option only during high peak
visitation months. Alternatives to be analyzed and costed in
the report include: (1) an alternative fueled bus alternative
with parking outside the park; (2) a rapid transit alternative
and (3) a combination bus/rapid transit alternative.
Section 133 prohibits the Secretary of the Interior from
removing a white cross erected in 1934 by the Veterans of
Foreign Wars to honor the memory of fallen World War I
veterans. The cross is located within the boundary of the
Mojave National Preserve along Cima Road, approximately 11
miles south of Interstate 15.
Section 134 extends the term of the Chesapeake and Ohio
Canal National Historical Park Commission.
Section 135 allows funds provided in Public Law 106-291
for land acquisition by the National Park Service in fiscal
year 2001 for Brandywine Battlefield, Ice Age National Scenic
Trail, Mississippi National River and Recreation Area,
Shenandoah National Heritage Area, and Fallen Timbers
Battlefield and Fort Miamis National Historic Site to be used
for a grant to a state, local government, or to a land
management entity.
Section 137 extends the boundary of Gulf Islands National
Seashore in Mississippi to include Cat Island.
Section 138. The conference agreement includes a new
provision regarding limitations on Federal Thrift Savings Plan
contributions.
Section 139. The conference agreement includes a new
provision regarding the exclusion of elements of the United
States Secret Service from certain activities.
Section 140. The conference agreement includes a new
provision providing for an average 3.7 percent salary
adjustment for Federal employees in January, 2001, consistent
with the alternative pay plan submitted by the Administration
on November 30, 2000.
Section 141. The conference agreement includes a new
provision repealing mandatory retirement for the Alaska
Railroad.
Section 142. The conference agreement includes a
provision amending the Juvenile Justice and Delinquency
Prevention Act to allow a two year exception for the State of
Alaska with respect to the holding of juveniles in adult
facilities.
Section 143. The conference agreement contains the ``LPTV
Pilot Project Digital Data Services Act''.
Section 144. The conference agreement includes a
provision to amend the following: the Magnuson-Stevens Fishery
Conservation and Management Act; P.L. 106-246; P.L. 105-83;
P.L. 99-5; P.L. 106-113 regarding a fishery research vessel;
the implementation of a fishing capacity reduction program for
the Commercial King and Tanner Crab Fisheries in the Bering Sea
and Aleutian Islands; P.L. 89-702 to be referred to as the Fur
Seal Act of 1966; the National Marine Sanctuaries Act (16
U.S.C. 1433, 1434); and the Sustainable Fisheries Act (16
U.S.C. 1855 note).
Section 145. The conference agreement includes language
amending the Department of State Special Agents Retirment Act
of 1998 to allow agents who retired between January 1, 1997,
and the enactment of the Act on November 13, 1998, to also be
eligible for the increased benefits provided by the Act.
Section 146. The conference agreement includes a
provision expressing the sense of Congress calling upon the
President of the United States to take action to provide relief
from injury caused by steel imports.
Section 147. The conference agreement includes a
provision amending the Johnson Act to prohibit gambling on
peri-Hawaiian cruises.
Section 148. The conference agreement includes language
to ban political advertising by public broadcasters.
Section 149. The conference agreement includes language
extending a certain small business program, which would
otherwise expire.
Section 150. The conference agreement includes
$105,000,000 in direct spending to the Department of Health and
Human Services for the Ricky Ray Hemophilia Relief Fund, of
which $10,000,000 is for program management.
Section 151. The conference agreement includes
$60,400,000 in direct spending to the Department of Labor for
costs related to administering the Energy Employees
Occupational Illness Compensation Program enacted as Title
XXXVI of the Defense Authorization Act of 2000. This program
was established to compensate individuals who have suffered
disabling and potentially fatal illnesses as a result of their
work in the Department of Energy's nuclear weapons complex. The
Secretary of Labor is authorized to transfer these funds to
other federal agencies to the extent necessary to implement the
Energy Employees Occupational Illness Compensation Act.
Section 152. The conference agreement includes a
provision to make certain technical and conforming amendments
to the Medicare/PPS law to allow the Moffit Cancer Research and
Treatment Center to be treated under existing law the same as
the other ten Medicare/PPS exempt institutions in the United
States.
The conference agreement includes language which provides
that the Secretary of the Army may establish a pilot program to
provide environmental assistance to non-Federal interests in
northern Wisconsin.
TITLE II--VIETNAM EDUCATION FOUNDATION ACT OF 2000
This title enacts a bill to establish a Vietnam Education
Foundation, to provide fellowships for Vietnamese to study in
the United States at the graduate and post-graduate level in
the sciences, math, and medicine. It would also support
American professors to teach these subjects in appropriate
Vietnamese institutions. The bill authorizes an appropriation
of $5,000,000 in fiscal year 2001. Beginning in FY2002, the
Secretary of the Treasury would transfer $5,000,000 annually to
the Foundation from debt repayments that Vietnam has agreed to
make to the United States in settlement of debt incurred prior
to 1976 by the Republic of South Vietnam. The Foundation can
also solicit and accept private funds.
TITLE III--COLORADO UTE SETTLEMENT ACT AMENDMENTS OF 2000
The conference agreement includes the text of S. 2508,
the Colorado Ute Settlement Act Amendments of 2000.
TITLE IV--DESIGNATION OF AMERICAN MUSEUM OF SCIENCE AND ENERGY
The conference agreement includes language which will
permit the American Museum of Science and Energy located in Oak
Ridge, Tennessee, to accept and use donations, fees, and gifts
to offset the cost of operating the facility.
TITLE V--DELTA REGIONAL AUTHORITY ACT OF 2000
The conference agreement includes language which
authorizes the Delta Regional Authority.
TITLE VI--DAKOTA WATER RESOURCES ACT OF 2000
The conference agreement includes the text of S. 623, the
Dakota Water Resources Act of 2000.
TITLE VII
The conference agreement includes an Act authorizing the
construction of a Reconciliation Place in Fort Pierre, South
Dakota.
TITLE VIII--ERIE CANALWAY NATIONAL
HERITAGE CORRIDOR
The conference agreement includes an Act to designate the
Erie Canalway a National Heritage Corridor.
TITLE IX--LAW ENFORCEMENT PAY EQUITY ACT
The conference agreement includes a new provision
regarding pay comparability for the United States Park Police,
the Uniformed Division of the United States Secret Service, and
the D.C. Metropolitan Police Department.
TITLE X--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
administrative provisions
Language is included which makes technical changes to the
fiscal year 2000 Appropriations Act regarding the Millennial
Housing Commission.
Language is included which codifies the multiplier the
Federal Home Loan Mortgage Corporation can use for reaching the
multi-family affordable housing goal.
Language is included to allow the conversion of a HUD
rental housing project in Toledo, Ohio to condominiums as long
as the housing remains affordable, either as rental or
homeownership housing, to low- and very-low income families
that currently reside in the apartments.
Language has been included which directs the General
Accounting Office to study and report on financial standards
related to the Federal Home Loan Bank System.
TITLE XI--DEPARTMENT OF THE TREASURY
administrative provision
Language is included which honors the Navajo Code Talkers
of World War II by authorizing the striking and presentation of
a gold medal of appropriate design to each of the original 29
Navajo Code Talkers or a surviving family member, striking and
presentation of a silver medal to each man or surviving family
member qualified as a Navajo Code Talker, and by further
authorizing the striking of duplicate medals in bronze for sale
to the general public.
TITLE XII--ENVIRONMENTAL PROTECTION AGENCY
administrative provisions
Language is included authorizing the aboveground storage
tank grant program.
TITLE XIII--NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
administrative provision
Language is included which permits NASA to use certain
proceeds from the sale of timber on lands associated with the
John C. Stennis Space Center for the purchase of additional
property to establish education and visitor programs and
facilities, and for wetlands mitigation.
TITLE XIV--CERTAIN ALASKAN CRUISE SHIP OPERATIONS
Language is included which regulates the discharge of
sewage and wastewater from cruise ships in certain waters in
and adjacent to the State of Alaska.
TITLE XV--LIFE ACT AMENDMENTS
The conference agreement includes a new title, titled the
LIFE Act Amendments of 2000.
TITLE XVI--IMPROVING LITERACY THROUGH FAMILY LITERACY PROJECTS
The conference agreement includes the Literacy Involves
Families Together Act of 2000.
TITLE XVII--CHILDREN'S INTERNET PROTECTION
The conference agreement includes the Children's Internet
Protection Act of 2000.
COMMODITY FUTURES MODERNIZATION ACT OF 2000
The conference agreement would enact the provisions of
H.R. 5660, as introduced on December 14, 2000. The text of that
bill follows:
A BILL To reauthorize and amend the Commodity Exchange Act to promote
legal certainty, enhance competition, and reduce systemic risk in
markets for futures and over-the-counter derivatives, and for other
purposes
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Commodity
Futures Modernization Act of 2000''.
(b) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
TITLE I--COMMODITY FUTURES MODERNIZATION
Sec. 101. Definitions.
Sec. 102. Agreements, contracts, and transactions in foreign currency,
government securities, and certain other commodities.
Sec. 103. Legal certainty for excluded derivative transactions.
Sec. 104. Excluded electronic trading facilities.
Sec. 105. Hybrid instruments; swap transactions.
Sec. 106. Transactions in exempt commodities.
Sec. 107. Application of commodity futures laws.
Sec. 108. Protection of the public interest.
Sec. 109. Prohibited transactions.
Sec. 110. Designation of boards of trade as contract markets.
Sec. 111. Derivatives transaction execution facilities.
Sec. 112. Derivatives clearing.
Sec. 113. Common provisions applicable to registered entities.
Sec. 114. Exempt boards of trade.
Sec. 115. Suspension or revocation of designation as contract market.
Sec. 116. Authorization of appropriations.
Sec. 117. Preemption.
Sec. 118. Predispute resolution agreements for institutional customers.
Sec. 119. Consideration of costs and benefits and antitrust laws.
Sec. 120. Contract enforcement between eligible counterparties.
Sec. 121. Special procedures to encourage and facilitate bona fide
hedging by agricultural producers.
Sec. 122. Rule of construction.
Sec. 123. Technical and conforming amendments.
Sec. 124. Privacy.
Sec. 125. Report to Congress.
Sec. 126. International activities of the Commodity Futures Trading
Commission.
TITLE II--COORDINATED REGULATION OF SECURITY FUTURES PRODUCTS
Subtitle A--Securities Law Amendments
Sec. 201. Definitions under the Securities Exchange Act of 1934.
Sec. 202. Regulatory relief for markets trading security futures
products.
Sec. 203. Regulatory relief for intermediaries trading security futures
products.
Sec. 204. Special provisions for interagency cooperation.
Sec. 205. Maintenance of market integrity for security futures products.
Sec. 206. Special provisions for the trading of security futures
products.
Sec. 207. Clearance and settlement.
Sec. 208. Amendments relating to registration and disclosure issues
under the Securities Act of 1933 and the Securities Exchange
Act of 1934.
Sec. 209. Amendments to the Investment Company Act of 1940 and the
Investment Advisers Act of 1940.
Sec. 210. Preemption of State laws.
Subtitle B--Amendments to the Commodity Exchange Act
Sec. 251. Jurisdiction of Securities and Exchange Commission; other
provisions.
Sec. 252. Application of the Commodity Exchange Act to national
securities exchanges and national securities associations that
trade security futures.
Sec. 253. Notification of investigations and enforcement actions.
TITLE III--LEGAL CERTAINTY FOR SWAP AGREEMENTS
Sec. 301. Swap agreement.
Sec. 302. Amendments to the Securities Act of 1933.
Sec. 303. Amendments to the Securities Exchange Act of 1934.
Sec. 304. Savings provision.
TITLE IV--REGULATORY RESPONSIBILITY FOR BANK PRODUCTS
Sec. 401. Short title.
Sec. 402. Definitions.
Sec. 403. Exclusion of identified banking products commonly offered on
or before December 5, 2000.
Sec. 404. Exclusion of certain identified banking products offered by
banks after December 5, 2000.
Sec. 405. Exclusion of certain other identified banking products.
Sec. 406. Administration of the predominance test.
Sec. 407. Exclusion of covered swap agreements.
Sec. 408. Contract enforcement.
SEC. 2. PURPOSES.
The purposes of this Act are--
(1) to reauthorize the appropriation for the
Commodity Futures Trading Commission;
(2) to streamline and eliminate unnecessary
regulation for the commodity futures exchanges and
other entities regulated under the Commodity Exchange
Act;
(3) to transform the role of the Commodity Futures
Trading Commission to oversight of the futures markets;
(4) to provide a statutory and regulatory framework
for allowing the trading of futures on securities;
(5) to clarify the jurisdiction of the Commodity
Futures Trading Commission over certain retail foreign
exchange transactions and bucket shops that may not be
otherwise regulated;
(6) to promote innovation for futures and
derivatives and to reduce systemic risk by enhancing
legal certainty in the markets for certain futures and
derivatives transactions;
(7) to reduce systemic risk and provide greater
stability to markets during times of market disorder by
allowing the clearing of transactions in over-the-
counter derivatives through appropriately regulated
clearing organizations; and
(8) to enhance the competitive position of United
States financial institutions and financial markets.
TITLE I--COMMODITY FUTURES MODERNIZATION
SEC. 101. DEFINITIONS.
Section 1a of the Commodity Exchange Act (7 U.S.C. 1a) is
amended--
(1) by redesignating paragraphs (1) through (7),
(8) through (12), (13) through (15), and (16) as
paragraphs (2) through (8), (16) through (20), (22)
through (24), and (28), respectively;
(2) by inserting before paragraph (2) (as
redesignated by paragraph (1)) the following:
``(1) Alternative trading system.--The term
`alternative trading system' means an organization,
association, or group of persons that--
``(A) is registered as a broker or dealer
pursuant to section 15(b) of the Securities
Exchange Act of 1934 (except paragraph (11)
thereof);
``(B) performs the functions commonly
performed by an exchange (as defined in section
3(a)(1) of the Securities Exchange Act of
1934);
``(C) does not--
``(i) set rules governing the
conduct of subscribers other than the
conduct of such subscribers' trading on
the alternative trading system; or
``(ii) discipline subscribers other
than by exclusion from trading; and
``(D) is exempt from the definition of the
term `exchange' under such section 3(a)(1) by
rule or regulation of the Securities and
Exchange Commission on terms that require
compliance with regulations of its trading
functions.'';
(3) by striking paragraph (2) (as redesignated by
paragraph (1)) and inserting the following:
``(2) Board of trade.--The term `board of trade'
means any organized exchange or other trading
facility.'';
(4) by inserting after paragraph (8) (as
redesignated by paragraph (1)) the following:
``(9) Derivatives clearing organization.--
``(A) In general.--The term `derivatives
clearing organization' means a clearinghouse,
clearing association, clearing corporation, or
similar entity, facility, system, or
organization that, with respect to an
agreement, contract, or transaction--
``(i) enables each party to the
agreement, contract, or transaction to
substitute, through novation or
otherwise, the credit of the
derivatives clearing organization for
the credit of the parties;
``(ii) arranges or provides, on a
multilateral basis, for the settlement
or netting of obligations resulting
from such agreements, contracts, or
transactions executed by participants
in the derivatives clearing
organization; or
``(iii) otherwise provides clearing
services or arrangements that mutualize
or transfer among participants in the
derivatives clearing organization the
credit risk arising from such
agreements, contracts, or transactions
executed by the participants.
``(B) Exclusions.--The term `derivatives
clearing organization' does not include an
entity, facility, system, or organization
solely because it arranges or provides for--
``(i) settlement, netting, or
novation of obligations resulting from
agreements, contracts, or transactions,
on a bilateral basis and without a
central counterparty;
``(ii) settlement or netting of
cash payments through an interbank
payment system; or
``(iii) settlement, netting, or
novation of obligations resulting from
a sale of a commodity in a transaction
in the spot market for the commodity.
``(10) Electronic trading facility.--The term
`electronic trading facility' means a trading facility
that--
``(A) operates by means of an electronic or
telecommunications network; and
``(B) maintains an automated audit trail of
bids, offers, and the matching of orders or the
execution of transactions on the facility.
``(11) Eligible commercial entity.--The term
`eligible commercial entity' means, with respect to an
agreement, contract or transaction in a commodity--
``(A) an eligible contract participant
described in clause (i), (ii), (v), (vii),
(viii), or (ix) of paragraph (12)(A) that, in
connection with its business--
``(i) has a demonstrable ability,
directly or through separate
contractual arrangements, to make or
take delivery of the underlying
commodity;
``(ii) incurs risks, in addition to
price risk, related to the commodity;
or
``(iii) is a dealer that regularly
provides risk management or hedging
services to, or engages in market-
making activities with, the foregoing
entities involving transactions to
purchase or sell the commodity or
derivative agreements, contracts, or
transactions in the commodity;
``(B) an eligible contract participant,
other than a natural person or an
instrumentality, department, or agency of a
State or local governmental entity, that--
``(i) regularly enters into
transactions to purchase or sell the
commodity or derivative agreements,
contracts, or transactions in the
commodity; and
``(ii) either--
``(I) in the case of a
collective investment vehicle
whose participants include
persons other than--
``(aa) qualified
eligible persons, as
defined in Commission
rule 4.7(a) (17 C.F.R.
4.7(a));
``(bb) accredited
investors, as defined
in Regulation D of the
Securities and Exchange
Commission under the
Securities Act of 1933
(17 C.F.R. 230.501(a)),
with total assets of
$2,000,000; or
``(cc) qualified
purchasers, as defined
in section 2(a)(51)(A)
of the Investment
Company Act of 1940;
in each case as in effect on
the date of the enactment of
the Commodity Futures
Modernization Act of 2000, has,
or is one of a group of
vehicles under common control
or management having in the
aggregate, $1,000,000,000 in
total assets; or
``(II) in the case of other
persons, has, or is one of a
group of persons under common
control or management having in
the aggregate, $100,000,000 in
total assets; or
``(C) such other persons as the Commission
shall determine appropriate and shall designate
by rule, regulation, or order.
``(12) Eligible contract participant.--The term
`eligible contract participant' means--
``(A) acting for its own account--
``(i) a financial institution;
``(ii) an insurance company that is
regulated by a State, or that is
regulated by a foreign government and
is subject to comparable regulation as
determined by the Commission, including
a regulated subsidiary or affiliate of
such an insurance company;
``(iii) an investment company
subject to regulation under the
Investment Company Act of 1940 (15
U.S.C. 80a-1 et seq.) or a foreign
person performing a similar role or
function subject as such to foreign
regulation (regardless of whether each
investor in the investment company or
the foreign person is itself an
eligible contract participant);
``(iv) a commodity pool that--
``(I) has total assets
exceeding $5,000,000; and
``(II) is formed and
operated by a person subject to
regulation under this Act or a
foreign person performing a
similar role or function
subject as such to foreign
regulation (regardless of
whether each investor in the
commodity pool or the foreign
person is itself an eligible
contract participant);
``(v) a corporation, partnership,
proprietorship, organization, trust, or
other entity--
``(I) that has total assets
exceeding $10,000,000;
``(II) the obligations of
which under an agreement,
contract, or transaction are
guaranteed or otherwise
supported by a letter of credit
or keepwell, support, or other
agreement by an entity
described in subclause (I), in
clause (i), (ii), (iii), (iv),
or (vii), or in subparagraph
(C); or
``(III) that--
``(aa) has a net
worth exceeding
$1,000,000; and
``(bb) enters into
an agreement, contract,
or transaction in
connection with the
conduct of the entity's
business or to manage
the risk associated
with an asset or
liability owned or
incurred or reasonably
likely to be owned or
incurred by the entity
in the conduct of the
entity's business;
``(vi) an employee benefit plan
subject to the Employee Retirement
Income Security Act of 1974 (29 U.S.C.
1001 et seq.), a governmental employee
benefit plan, or a foreign person
performing a similar role or function
subject as such to foreign regulation--
``(I) that has total assets
exceeding $5,000,000; or
``(II) the investment
decisions of which are made
by--
``(aa) an
investment adviser or
commodity trading
advisor subject to
regulation under the
Investment Advisers Act
of 1940 (15 U.S.C. 80b-
1 et seq.) or this Act;
``(bb) a foreign
person performing a
similar role or
function subject as
such to foreign
regulation;
``(cc) a financial
institution; or
``(dd) an insurance
company described in
clause (ii), or a
regulated subsidiary or
affiliate of such an
insurance company;
``(vii)(I) a governmental entity
(including the United States, a State,
or a foreign government) or political
subdivision of a governmental entity;
``(II) a multinational or
supranational government entity; or
``(III) an instrumentality, agency,
or department of an entity described in
subclause (I) or (II);
except that such term does not include
an entity, instrumentality, agency, or
department referred to in subclause (I)
or (III) of this clause unless (aa) the
entity, instrumentality, agency, or
department is a person described in
clause (i), (ii), or (iii) of section
1a(11)(A); (bb) the entity,
instrumentality, agency, or department
owns and invests on a discretionary
basis $25,000,000 or more in
investments; or (cc) the agreement,
contract, or transaction is offered by,
and entered into with, an entity that
is listed in any of subclauses (I)
through (VI) of section 2(c)(2)(B)(ii);
``(viii)(I) a broker or dealer
subject to regulation under the
Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.) or a foreign person
performing a similar role or function
subject as such to foreign regulation,
except that, if the broker or dealer or
foreign person is a natural person or
proprietorship, the broker or dealer or
foreign person shall not be considered
to be an eligible contract participant
unless the broker or dealer or foreign
person also meets the requirements of
clause (v) or (xi);
``(II) an associated person of a
registered broker or dealer concerning
the financial or securities activities
of which the registered person makes
and keeps records under section 15C(b)
or 17(h) of the Securities Exchange Act
of 1934 (15 U.S.C. 78o-5(b), 78q(h));
``(III) an investment bank holding
company (as defined in section 17(i) of
the Securities Exchange Act of 1934 (15
U.S.C. 78q(i));
``(ix) a futures commission
merchant subject to regulation under
this Act or a foreign person performing
a similar role or function subject as
such to foreign regulation, except
that, if the futures commission
merchant or foreign person is a natural
person or proprietorship, the futures
commission merchant or foreign person
shall not be considered to be an
eligible contract participant unless
the futures commission merchant or
foreign person also meets the
requirements of clause (v) or (xi);
``(x) a floor broker or floor
trader subject to regulation under this
Act in connection with any transaction
that takes place on or through the
facilities of a registered entity or an
exempt board of trade, or any affiliate
thereof, on which such person regularly
trades; or
``(xi) an individual who has total
assets in an amount in excess of--
``(I) $10,000,000; or
``(II) $5,000,000 and who
enters into the agreement,
contract, or transaction in
order to manage the risk
associated with an asset owned
or liability incurred, or
reasonably likely to be owned
or incurred, by the individual;
``(B)(i) a person described in clause (i),
(ii), (iv), (v), (viii), (ix), or (x) of
subparagraph (A) or in subparagraph (C), acting
as broker or performing an equivalent agency
function on behalf of another person described
in subparagraph (A) or (C); or
``(ii) an investment adviser subject to
regulation under the Investment Advisers Act of
1940, a commodity trading advisor subject to
regulation under this Act, a foreign person
performing a similar role or function subject
as such to foreign regulation, or a person
described in clause (i), (ii), (iv), (v),
(viii), (ix), or (x) of subparagraph (A) or in
subparagraph (C), in any such case acting as
investment manager or fiduciary (but excluding
a person acting as broker or performing an
equivalent agency function) for another person
described in subparagraph (A) or (C) and who is
authorized by such person to commit such person
to the transaction; or
``(C) any other person that the Commission
determines to be eligible in light of the
financial or other qualifications of the
person.
``(13) Excluded commodity.--The term `excluded
commodity' means--
``(i) an interest rate, exchange
rate, currency, security, security
index, credit risk or measure, debt or
equity instrument, index or measure of
inflation, or other macroeconomic index
or measure;
``(ii) any other rate,
differential, index, or measure of
economic or commercial risk, return, or
value that is--
``(I) not based in
substantial part on the value
of a narrow group of
commodities not described in
clause (i); or
``(II) based solely on 1 or
more commodities that have no
cash market;
``(iii) any economic or commercial
index based on prices, rates, values,
or levels that are not within the
control of any party to the relevant
contract, agreement, or transaction; or
``(iv) an occurrence, extent of an
occurrence, or contingency (other than
a change in the price, rate, value, or
level of a commodity not described in
clause (i)) that is--
``(I) beyond the control of
the parties to the relevant
contract, agreement, or
transaction; and
``(II) associated with a
financial, commercial, or
economic consequence.
``(14) Exempt commodity.--The term `exempt
commodity' means a commodity that is not an excluded
commodity or an agricultural commodity.
``(15) Financial institution.--The term `financial
institution' means--
``(A) a corporation operating under the
fifth undesignated paragraph of section 25 of
the Federal Reserve Act (12 U.S.C. 603),
commonly known as `an agreement corporation';
``(B) a corporation organized under section
25A of the Federal Reserve Act (12 U.S.C. 611
et seq.), commonly known as an `Edge Act
corporation';
``(C) an institution that is regulated by
the Farm Credit Administration;
``(D) a Federal credit union or State
credit union (as defined in section 101 of the
Federal Credit Union Act (12 U.S.C. 1752));
``(E) a depository institution (as defined
in section 3 of the Federal Deposit Insurance
Act (12 U.S.C. 1813));
``(F) a foreign bank or a branch or agency
of a foreign bank (each as defined in section
1(b) of the International Banking Act of 1978
(12 U.S.C. 3101(b)));
``(G) any financial holding company (as
defined in section 2 of the Bank Holding
Company Act of 1956);
``(H) a trust company; or
``(I) a similarly regulated subsidiary or
affiliate of an entity described in any of
subparagraphs (A) through (H).'';
(5) by inserting after paragraph (20) (as
redesignated by paragraph (1)) the following:
``(21) Hybrid instrument.--The term `hybrid
instrument' means a security having 1 or more payments
indexed to the value, level, or rate of, or providing
for the delivery of, 1 or more commodities.'';
(6) by striking paragraph (24) (as redesignated by
paragraph (1)) and inserting the following:
``(24) Member of a contract market; member of a
derivatives transaction execution facility.--The term
`member' means, with respect to a contract market or
derivatives transaction execution facility, an
individual, association, partnership, corporation, or
trust--
``(A) owning or holding membership in, or
admitted to membership representation on, the
contract market or derivatives transaction
execution facility; or
``(B) having trading privileges on the
contract market or derivatives transaction
execution facility.
``(25) Narrow-based security index.--
``(A) The term `narrow-based security
index' means an index--
``(i) that has 9 or fewer component
securities;
``(ii) in which a component
security comprises more than 30 percent
of the index's weighting;
``(iii) in which the 5 highest
weighted component securities in the
aggregate comprise more than 60 percent
of the index's weighting; or
``(iv) in which the lowest weighted
component securities comprising, in the
aggregate, 25 percent of the index's
weighting have an aggregate dollar
value of average daily trading volume
of less than $50,000,000 (or in the
case of an index with 15 or more
component securities, $30,000,000),
except that if there are two or more
securities with equal weighting that
could be included in the calculation of
the lowest weighted component
securities comprising, in the
aggregate, 25 percent of the index's
weighting, such securities shall be
ranked from lowest to highest dollar
value of average daily trading volume
and shall be included in the
calculation based on their ranking
starting with the lowest ranked
security.
``(B) Notwithstanding subparagraph (A), an
index is not a narrow-based security index if--
``(i)(I) it has at least 9
component securities;
``(II) no component security
comprises more than 30 percent of the
index's weighting; and
``(III) each component security
is--
``(aa) registered pursuant
to section 12 of the Securities
Exchange Act of 1934;
``(bb) 1 of 750 securities
with the largest market
capitalization; and
``(cc) 1 of 675 securities
with the largest dollar value
of average daily trading
volume;
``(ii) a board of trade was
designated as a contract market by the
Commodity Futures Trading Commission
with respect to a contract of sale for
future delivery on the index, before
the date of enactment of the Commodity
Futures Modernization Act of 2000;
``(iii)(I) a contract of sale for
future delivery on the index traded on
a designated contract market or
registered derivatives transaction
execution facility for at least 30 days
as a contract of sale for future
delivery on an index that was not a
narrow-based security index; and
``(II) it has been a narrow-based
security index for no more than 45
business days over 3 consecutive
calendar months;
``(iv) a contract of sale for
future delivery on the index is traded
on or subject to the rules of a foreign
board of trade and meets such
requirements as are jointly established
by rule or regulation by the Commission
and the Securities and Exchange
Commission;
``(v) no more than 18 months have
passed since the date of enactment of
the Commodity Futures Modernization Act
of 2000 and--
``(I) it is traded on or
subject to the rules of a
foreign board of trade;
``(II) the offer and sale
in the United States of a
contract of sale for future
delivery on the index was
authorized before the date of
the enactment of the Commodity
Futures Modernization Act of
2000; and
``(III) the conditions of
such authorization continue to
be met; or
``(vi) a contract of sale for
future delivery on the index is traded
on or subject to the rules of a board
of trade and meets such requirements as
are jointly established by rule,
regulation, or order by the Commission
and the Securities and Exchange
Commission.
``(C) Within 1 year after the date of the
enactment of the Commodity Futures
Modernization Act of 2000, the Commission and
the Securities and Exchange Commission jointly
shall adopt rules or regulations that set forth
the requirements under subparagraph (B)(iv).
``(D) An index that is a narrow-based
security index solely because it was a narrow-
based security index for more than 45 business
days over 3 consecutive calendar months
pursuant to clause (iii) of subparagraph (B)
shall not be a narrow-based security index for
the 3 following calendar months.
``(E) For purposes of subparagraphs (A) and
(B)--
``(i) the dollar value of average
daily trading volume and the market
capitalization shall be calculated as
of the preceding 6 full calendar
months; and
``(ii) the Commission and the
Securities and Exchange Commission
shall, by rule or regulation, jointly
specify the method to be used to
determine market capitalization and
dollar value of average daily trading
volume.
``(26) Option.--The term `option' means an
agreement, contract, or transaction that is of the
character of, or is commonly known to the trade as, an
`option', `privilege', `indemnity', `bid', `offer',
`put', `call', `advance guaranty', or `decline
guaranty'.
``(27) Organized exchange.--The term `organized
exchange' means a trading facility that--
``(A) permits trading--
``(i) by or on behalf of a person
that is not an eligible contract
participant; or
``(ii) by persons other than on a
principal-to-principal basis; or
``(B) has adopted (directly or through
another nongovernmental entity) rules that--
``(i) govern the conduct of
participants, other than rules that
govern the submission of orders or
execution of transactions on the
trading facility; and
``(ii) include disciplinary
sanctions other than the exclusion of
participants from trading.''; and
(7) by adding at the end the following:
``(29) Registered entity.--The term `registered
entity' means--
``(A) a board of trade designated as a
contract market under section 5;
``(B) a derivatives transaction execution
facility registered under section 5a;
``(C) a derivatives clearing organization
registered under section 5b; and
``(D) a board of trade designated as a
contract market under section 5f.
``(30) Security.--The term `security' means a
security as defined in section 2(a)(1) of the
Securities Act of 1933 (15 U.S.C. 77b(a)(1)) or section
3(a)(10) of the Securities Exchange Act of 1934 (15
U.S.C. 78c(a)(10)).
``(31) Security future.--The term `security future'
means a contract of sale for future delivery of a
single security or of a narrow-based security index,
including any interest therein or based on the value
thereof, except an exempted security under section
3(a)(12) of the Securities Exchange Act of 1934 as in
effect on the date of enactment of the Futures Trading
Act of 1982 (other than any municipal security as
defined in section 3(a)(29) of the Securities Exchange
Act of 1934 as in effect on the date of enactment of
the Futures Trading Act of 1982). The term `security
future' does not include any agreement, contract, or
transaction excluded from this Act under section 2(c),
2(d), 2(f), or 2(g) of this Act (as in effect on the
date of the enactment of the Commodity Futures
Modernization Act of 2000) or title IV of the Commodity
Futures Modernization Act of 2000.
``(32) Security futures product.--The term
`security futures product' means a security future or
any put, call, straddle, option, or privilege on any
security future.
``(33) Trading facility.--
``(A) In general.--The term `trading
facility' means a person or group of persons
that constitutes, maintains, or provides a
physical or electronic facility or system in
which multiple participants have the ability to
execute or trade agreements, contracts, or
transactions by accepting bids and offers made
by other participants that are open to multiple
participants in the facility or system.
``(B) Exclusions.--The term `trading
facility' does not include--
``(i) a person or group of persons
solely because the person or group of
persons constitutes, maintains, or
provides an electronic facility or
system that enables participants to
negotiate the terms of and enter into
bilateral transactions as a result of
communications exchanged by the parties
and not from interaction of multiple
bids and multiple offers within a
predetermined, nondiscretionary
automated trade matching and execution
algorithm;
``(ii) a government securities
dealer or government securities broker,
to the extent that the dealer or broker
executes or trades agreements,
contracts, or transactions in
government securities, or assists
persons in communicating about,
negotiating, entering into, executing,
or trading an agreement, contract, or
transaction in government securities
(as the terms `government securities
dealer', `government securities
broker', and `government securities'
are defined in section 3(a) of the
Securities Exchange Act of 1934 (15
U.S.C. 78c(a))); or
``(iii) facilities on which bids
and offers, and acceptances of bids and
offers effected on the facility, are
not binding.
Any person, group of persons, dealer, broker,
or facility described in clause (i) or (ii) is
excluded from the meaning of the term `trading
facility' for the purposes of this Act without
any prior specific approval, certification, or
other action by the Commission.
``(C) Special rule.--A person or group of
persons that would not otherwise constitute a
trading facility shall not be considered to be
a trading facility solely as a result of the
submission to a derivatives clearing
organization of transactions executed on or
through the person or group of persons.''.
SEC. 102. AGREEMENTS, CONTRACTS, AND TRANSACTIONS IN FOREIGN CURRENCY,
GOVERNMENT SECURITIES, AND CERTAIN OTHER
COMMODITIES.
Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 2a, 3,
4, 4a) is amended by adding at the end the following:
``(c) Agreements, Contracts, and Transactions in Foreign
Currency, Government Securities, and Certain Other
Commodities.--
``(1) In general.--Except as provided in paragraph
(2), nothing in this Act (other than section 5a (to the
extent provided in section 5a(g)), 5b, 5d, or
12(e)(2)(B)) governs or applies to an agreement,
contract, or transaction in--
``(A) foreign currency;
``(B) government securities;
``(C) security warrants;
``(D) security rights;
``(E) resales of installment loan
contracts;
``(F) repurchase transactions in an
excluded commodity; or
``(G) mortgages or mortgage purchase
commitments.
``(2) Commission jurisdiction.--
``(A) Agreements, contracts, and
transactions traded on an organized exchange.--
This Act applies to, and the Commission shall
have jurisdiction over, an agreement, contract,
or transaction described in paragraph (1) that
is--
``(i) a contract of sale of a
commodity for future delivery (or an
option on such a contract), or an
option on a commodity (other than
foreign currency or a security or a
group or index of securities), that is
executed or traded on an organized
exchange; or
``(ii) an option on foreign
currency executed or traded on an
organized exchange that is not a
national securities exchange registered
pursuant to section 6(a) of the
Securities Exchange Act of 1934.
``(B) Agreements, contracts, and
transactions in retail foreign currency.--This
Act applies to, and the Commission shall have
jurisdiction over, an agreement, contract, or
transaction in foreign currency that--
``(i) is a contract of sale of a
commodity for future delivery (or an
option on such a contract) or an option
(other than an option executed or
traded on a national securities
exchange registered pursuant to section
6(a) of the Securities Exchange Act of
1934); and
``(ii) is offered to, or entered
into with, a person that is not an
eligible contract participant, unless
the counterparty, or the person
offering to be the counterparty, of the
person is--
``(I) a financial
institution;
``(II) a broker or dealer
registered under section 15(b)
or 15C of the Securities
Exchange Act of 1934 (15 U.S.C.
78o(b), 78o-5) or a futures
commission merchant registered
under this Act;
``(III) an associated
person of a broker or dealer
registered under section 15(b)
or 15C of the Securities
Exchange Act of 1934 (15 U.S.C.
78o(b), 78o-5), or an
affiliated person of a futures
commission merchant registered
under this Act, concerning the
financial or securities
activities of which the
registered person makes and
keeps records under section
15C(b) or 17(h) of the
Securities Exchange Act of 1934
(15 U.S.C. 78o-5(b), 78q(h)) or
section 4f(c)(2)(B) of this
Act;
``(IV) an insurance company
described in section
1a(12)(A)(ii) of this Act, or a
regulated subsidiary or
affiliate of such an insurance
company;
``(V) a financial holding
company (as defined in section
2 of the Bank Holding Company
Act of 1956); or
``(VI) an investment bank
holding company (as defined in
section 17(i) of the Securities
Exchange Act of 1934).
``(C) Notwithstanding subclauses (II) and
(III) of subparagraph (B)(ii), agreements,
contracts, or transactions described in
subparagraph (B) shall be subject to sections
4b, 4c(b), 6(c) and 6(d) (to the extent that
sections 6(c) and 6(d) prohibit manipulation of
the market price of any commodity, in
interstate commerce, or for future delivery on
or subject to the rules of any market), 6c, 6d,
and 8(a) if they are entered into by a futures
commission merchant or an affiliate of a
futures commission merchant that is not also an
entity described in subparagraph (B)(ii) of
this paragraph.''.
SEC. 103. LEGAL CERTAINTY FOR EXCLUDED DERIVATIVE TRANSACTIONS.
Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 2a, 3,
4, 4a) is further amended by adding at the end the following:
``(d) Excluded Derivative Transactions.--
``(1) In general.--Nothing in this Act (other than
section 5b or 12(e)(2)(B)) governs or applies to an
agreement, contract, or transaction in an excluded
commodity if--
``(A) the agreement, contract, or
transaction is entered into only between
persons that are eligible contract participants
at the time at which the persons enter into the
agreement, contract, or transaction; and
``(B) the agreement, contract, or
transaction is not executed or traded on a
trading facility.
``(2) Electronic trading facility exclusion.--
Nothing in this Act (other than section 5a (to the
extent provided in section 5a(g)), 5b, 5d, or
12(e)(2)(B)) governs or applies to an agreement,
contract, or transaction in an excluded commodity if--
``(A) the agreement, contract, or
transaction is entered into on a principal-to-
principal basis between parties trading for
their own accounts or as described in section
1a(12)(B)(ii);
``(B) the agreement, contract, or
transaction is entered into only between
persons that are eligible contract participants
described in subparagraph (A), (B)(ii), or (C)
of section 1a(12)) at the time at which the
persons enter into the agreement, contract, or
transaction; and
``(C) the agreement, contract, or
transaction is executed or traded on an
electronic trading facility.''.
SEC. 104. EXCLUDED ELECTRONIC TRADING FACILITIES.
Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 2a, 3,
4, 4a) is further amended by adding at the end the following:
``(e) Excluded Electronic Trading Facilities.--
``(1) In general.--Nothing in this Act (other than
section 12(e)(2)(B)) governs or is applicable to an
electronic trading facility that limits transactions
authorized to be conducted on its facilities to those
satisfying the requirements of section 2(d)(2), 2(g),
or 2(h)(3).
``(2) Effect on authority to establish and
operate.--Nothing in this Act shall prohibit a board of
trade designated by the Commission as a contract market
or derivatives transaction execution facility, or
operating as an exempt board of trade from establishing
and operating an electronic trading facility excluded
under this Act pursuant to paragraph (1).
``(3) Effect on transactions.--No failure by an
electronic trading facility to limit transactions as
required by paragraph (1) of this subsection or to
comply with section 2(h)(5) shall in itself affect the
legality, validity, or enforceability of an agreement,
contract, or transaction entered into or traded on the
electronic trading facility or cause a participant on
the system to be in violation of this Act.
``(4) Special rule.--A person or group of persons
that would not otherwise constitute a trading facility
shall not be considered to be a trading facility solely
as a result of the submission to a derivatives clearing
organization of transactions executed on or through the
person or group of persons.''.
SEC. 105. HYBRID INSTRUMENTS; SWAP TRANSACTIONS.
(a) Hybrid Instruments.--Section 2 of the Commodity
Exchange Act (7 U.S.C. 2, 2a, 3, 4, 4a) is further amended by
adding at the end the following:
``(f) Exclusion for Qualifying Hybrid Instruments.--
``(1) In general.--Nothing in this Act (other than
section 12(e)(2)(B)) governs or is applicable to a
hybrid instrument that is predominantly a security.
``(2) Predominance.--A hybrid instrument shall be
considered to be predominantly a security if--
``(A) the issuer of the hybrid instrument
receives payment in full of the purchase price
of the hybrid instrument, substantially
contemporaneously with delivery of the hybrid
instrument;
``(B) the purchaser or holder of the hybrid
instrument is not required to make any payment
to the issuer in addition to the purchase price
paid under subparagraph (A), whether as margin,
settlement payment, or otherwise, during the
life of the hybrid instrument or at maturity;
``(C) the issuer of the hybrid instrument
is not subject by the terms of the instrument
to mark-to-market margining requirements; and
``(D) the hybrid instrument is not marketed
as a contract of sale of a commodity for future
delivery (or option on such a contract) subject
to this Act.
``(3) Mark-to-market margining requirements.--For
the purposes of paragraph (2)(C), mark-to-market
margining requirements do not include the obligation of
an issuer of a secured debt instrument to increase the
amount of collateral held in pledge for the benefit of
the purchaser of the secured debt instrument to secure
the repayment obligations of the issuer under the
secured debt instrument.''.
(b) Swap Transactions.--Section 2 of the Commodity Exchange
Act (7 U.S.C. 2, 2a, 3, 4, 4a) is further amended by adding at
the end the following:
``(g) Excluded Swap Transactions.--No provision of this Act
(other than section 5a (to the extent provided in section
5a(g)), 5b, 5d, or 12(e)(2)) shall apply to or govern any
agreement, contract, or transaction in a commodity other than
an agricultural commodity if the agreement, contract, or
transaction is--
``(1) entered into only between persons that are
eligible contract participants at the time they enter
into the agreement, contract, or transaction;
``(2) subject to individual negotiation by the
parties; and
``(3) not executed or traded on a trading
facility.''.
(c) Study Regarding Retail Swaps.--
(1) In general.--The Board of Governors of the
Federal Reserve System, the Secretary of the Treasury,
the Commodity Futures Trading Commission, and the
Securities and Exchange Commission shall conduct a
study of issues involving the offering of swap
agreements to persons other than eligible contract
participants (as defined in section 1a of the Commodity
Exchange Act).
(2) Matters to be addressed.--The study shall
address--
(A) the potential uses of swap agreements
by persons other than eligible contract
participants;
(B) the extent to which financial
institutions are willing to offer swap
agreements to persons other than eligible
contract participants;
(C) the appropriate regulatory structure to
address customer protection issues that may
arise in connection with the offer of swap
agreements to persons other than eligible
contract participants; and
(D) such other relevant matters deemed
necessary or appropriate to address.
(3) Report.--Before the end of the 1-year period
beginning on the date of enactment of this Act, a
report on the findings and conclusions of the study
required by paragraph (1) shall be submitted to
Congress, together with such recommendations for
legislative action as are deemed necessary and
appropriate.
SEC. 106. TRANSACTIONS IN EXEMPT COMMODITIES.
Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 2a, 3,
4, 4a) is further amended by adding at the end the following.
``(h) Legal Certainty for Certain Transactions in Exempt
Commodities.--
``(1) Except as provided in paragraph (2), nothing
in this Act shall apply to a contract, agreement or
transaction in an exempt commodity which--
``(A) is entered into solely between
persons that are eligible contract participants
at the time the persons enter into the
agreement, contract, or transaction; and
``(B) is not entered into on a trading
facility.
``(2) An agreement, contract, or transaction
described in paragraph (1) of this subsection shall be
subject to--
``(A) sections 5b and 12(e)(2)(B);
``(B) sections 4b, 4o, 6(c), 6(d), 6c, 6d,
and 8a, and the regulations of the Commission
pursuant to section 4c(b) proscribing fraud in
connection with commodity option transactions,
to the extent the agreement, contract, or
transaction is not between eligible commercial
entities (unless 1 of the entities is an
instrumentality, department, or agency of a
State or local governmental entity) and would
otherwise be subject to such sections and
regulations; and
``(C) sections 6(c), 6(d), 6c, 6d, 8a, and
9(a)(2), to the extent such sections prohibit
manipulation of the market price of any
commodity in interstate commerce and the
agreement, contract, or transaction would
otherwise be subject to such sections.
``(3) Except as provided in paragraph (4), nothing
in this Act shall apply to an agreement, contract, or
transaction in an exempt commodity which is--
``(A) entered into on a principal-to-
principal basis solely between persons that are
eligible commercial entities at the time the
persons enter into the agreement, contract, or
transaction; and
``(B) executed or traded on an electronic
trading facility.
``(4) An agreement, contract, or transaction
described in paragraph (3) of this subsection shall be
subject to--
``(A) sections 5a (to the extent provided
in section 5a(g)), 5b, 5d, and 12(e)(2)(B);
``(B) sections 4b and 4o and the
regulations of the Commission pursuant to
section 4c(b) proscribing fraud in connection
with commodity option transactions to the
extent the agreement, contract, or transaction
would otherwise be subject to such sections and
regulations;
``(C) sections 6(c) and 9(a)(2), to the
extent such sections prohibit manipulation of
the market price of any commodity in interstate
commerce and to the extent the agreement,
contract, or transaction would otherwise be
subject to such sections; and
``(D) such rules and regulations as the
Commission may prescribe if necessary to ensure
timely dissemination by the electronic trading
facility of price, trading volume, and other
trading data to the extent appropriate, if the
Commission determines that the electronic
trading facility performs a significant price
discovery function for transactions in the cash
market for the commodity underlying any
agreement, contract, or transaction executed or
traded on the electronic trading facility.
``(5) An electronic trading facility relying on the
exemption provided in paragraph (3) shall--
``(A) notify the Commission of its
intention to operate an electronic trading
facility in reliance on the exemption set forth
in paragraph (3), which notice shall include--
``(i) the name and address of the
facility and a person designated to
receive communications from the
Commission;
``(ii) the commodity categories
that the facility intends to list or
otherwise make available for trading on
the facility in reliance on the
exemption set forth in paragraph (3);
``(iii) certifications that--
``(I) no executive officer
or member of the governing
board of, or any holder of a 10
percent or greater equity
interest in, the facility is a
person described in any of
subparagraphs (A) through (H)
of section 8a(2);
``(II) the facility will
comply with the conditions for
exemption under this paragraph;
and
``(III) the facility will
notify the Commission of any
material change in the
information previously provided
by the facility to the
Commission pursuant to this
paragraph; and
``(iv) the identity of any
derivatives clearing organization to
which the facility transmits or intends
to transmit transaction data for the
purpose of facilitating the clearance
and settlement of transactions
conducted on the facility in reliance
on the exemption set forth in paragraph
(3);
``(B)(i)(I) provide the Commission with
access to the facility's trading protocols and
electronic access to the facility with respect
to transactions conducted in reliance on the
exemption set forth in paragraph (3); or
``(II) provide such reports to the
Commission regarding transactions executed on
the facility in reliance on the exemption set
forth in paragraph (3) as the Commission may
from time to time request to enable the
Commission to satisfy its obligations under
this Act;
``(ii) maintain for 5 years, and make
available for inspection by the Commission upon
request, records of activities related to its
business as an electronic trading facility
exempt under paragraph (3), including--
``(I) information relating to data
entry and transaction details
sufficient to enable the Commission to
reconstruct trading activity on the
facility conducted in reliance on the
exemption set forth in paragraph (3);
and
``(II) the name and address of each
participant on the facility authorized
to enter into transactions in reliance
on the exemption set forth in paragraph
(3); and
``(iii) upon special call by the
Commission, provide to the Commission, in a
form and manner and within the period specified
in the special call, such information related
to its business as an electronic trading
facility exempt under paragraph (3), including
information relating to data entry and
transaction details in respect of transactions
entered into in reliance on the exemption set
forth in paragraph (3), as the Commission may
determine appropriate--
``(I) to enforce the provisions
specified in subparagraphs (B) and (C)
of paragraph (4);
``(II) to evaluate a systemic
market event; or
``(III) to obtain information
requested by a Federal financial
regulatory authority in order to enable
the regulator to fulfill its regulatory
or supervisory responsibilities;
``(C)(i) upon receipt of any subpoena
issued by or on behalf of the Commission to any
foreign person who the Commission believes is
conducting or has conducted transactions in
reliance on the exemption set forth in
paragraph (3) on or through the electronic
trading facility relating to the transactions,
promptly notify the foreign person of, and
transmit to the foreign person, the subpoena in
a manner reasonable under the circumstances, or
as specified by the Commission; and
``(ii) if the Commission has reason to
believe that a person has not timely complied
with a subpoena issued by or on behalf of the
Commission pursuant to clause (i), and the
Commission in writing has directed that a
facility relying on the exemption set forth in
paragraph (3) deny or limit further
transactions by the person, the facility shall
deny that person further trading access to the
facility or, as applicable, limit that person's
access to the facility for liquidation trading
only;
``(D) comply with the requirements of this
paragraph applicable to the facility and
require that each participant, as a condition
of trading on the facility in reliance on the
exemption set forth in paragraph (3), agree to
comply with all applicable law;
``(E) have a reasonable basis for believing
that participants authorized to conduct
transactions on the facility in reliance on the
exemption set forth in paragraph (3) are
eligible commercial entities; and
``(F) not represent to any person that the
facility is registered with, or designated,
recognized, licensed or approved by the
Commission.
``(6) A person named in a subpoena referred to in
paragraph (5)(C) that believes the person is or may be
adversely affected or aggrieved by action taken by the
Commission under this section, shall have the
opportunity for a prompt hearing after the Commission
acts under procedures that the Commission shall
establish by rule, regulation, or order.''.
SEC. 107. APPLICATION OF COMMODITY FUTURES LAWS.
Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 2a, 3,
4, 4a) is further amended by adding at the end the following:
``(i) Application of Commodity Futures Laws.--
``(1) No provision of this Act shall be construed
as implying or creating any presumption that--
``(A) any agreement, contract, or
transaction that is excluded from this Act
under section 2(c), 2(d), 2(e), 2(f), or 2(g)
of this Act or title IV of the Commodity
Futures Modernization Act of 2000, or exempted
under section 2(h) or 4(c) of this Act; or
``(B) any agreement, contract, or
transaction, not otherwise subject to this Act,
that is not so excluded or exempted,
is or would otherwise be subject to this Act.
``(2) No provision of, or amendment made by, the
Commodity Futures Modernization Act of 2000 shall be
construed as conferring jurisdiction on the Commission
with respect to any such agreement, contract, or
transaction, except as expressly provided in section 5a
of this Act (to the extent provided in section 5a(g) of
this Act), 5b of this Act, or 5d of this Act.''.
SEC. 108. PROTECTION OF THE PUBLIC INTEREST.
The Commodity Exchange Act is amended by striking section 3
(7 U.S.C. 5) and inserting the following:
``SEC. 3. FINDINGS AND PURPOSE.
``(a) Findings.--The transactions subject to this Act are
entered into regularly in interstate and international commerce
and are affected with a national public interest by providing a
means for managing and assuming price risks, discovering
prices, or disseminating pricing information through trading in
liquid, fair and financially secure trading facilities.
``(b) Purpose.--It is the purpose of this Act to serve the
public interests described in subsection (a) through a system
of effective self-regulation of trading facilities, clearing
systems, market participants and market professionals under the
oversight of the Commission. To foster these public interests,
it is further the purpose of this Act to deter and prevent
price manipulation or any other disruptions to market
integrity; to ensure the financial integrity of all
transactions subject to this Act and the avoidance of systemic
risk; to protect all market participants from fraudulent or
other abusive sales practices and misuses of customer assets;
and to promote responsible innovation and fair competition
among boards of trade, other markets and market
participants.''.
SEC. 109. PROHIBITED TRANSACTIONS.
Section 4c of the Commodity Exchange Act (7 U.S.C. 6c) is
amended by striking ``Sec. 4c.'' and all that follows through
subsection (a) and inserting the following:
``SEC. 4C. PROHIBITED TRANSACTIONS.
``(a) In General.--
``(1) Prohibition.--It shall be unlawful for any
person to offer to enter into, enter into, or confirm
the execution of a transaction described in paragraph
(2) involving the purchase or sale of any commodity for
future delivery (or any option on such a transaction or
option on a commodity) if the transaction is used or
may be used to--
``(A) hedge any transaction in interstate
commerce in the commodity or the product or
byproduct of the commodity;
``(B) determine the price basis of any such
transaction in interstate commerce in the
commodity; or
``(C) deliver any such commodity sold,
shipped, or received in interstate commerce for
the execution of the transaction.
``(2) Transaction.--A transaction referred to in
paragraph (1) is a transaction that--
``(A)(i) is, is of the character of, or is
commonly known to the trade as, a `wash sale'
or `accommodation trade'; or
``(ii) is a fictitious sale; or
``(B) is used to cause any price to be
reported, registered, or recorded that is not a
true and bona fide price.''.
SEC. 110. DESIGNATION OF BOARDS OF TRADE AS CONTRACT MARKETS.
The Commodity Exchange Act is amended--
(1) by redesignating section 5b (7 U.S.C. 7b) as
section 5e; and
(2) by striking sections 5 and 5a (7 U.S.C. 7, 7a)
and inserting the following:
``SEC. 5. DESIGNATION OF BOARDS OF TRADE AS CONTRACT MARKETS.
``(a) Applications.--A board of trade applying to the
Commission for designation as a contract market shall submit an
application to the Commission that includes any relevant
materials and records the Commission may require consistent
with this Act.
``(b) Criteria for Designation.--
``(1) In general.--To be designated as a contract
market, the board of trade shall demonstrate to the
Commission that the board of trade meets the criteria
specified in this subsection.
``(2) Prevention of market manipulation.--The board
of trade shall have the capacity to prevent market
manipulation through market surveillance, compliance,
and enforcement practices and procedures, including
methods for conducting real-time monitoring of trading
and comprehensive and accurate trade reconstructions.
``(3) Fair and equitable trading.--The board of
trade shall establish and enforce trading rules to
ensure fair and equitable trading through the
facilities of the contract market, and the capacity to
detect, investigate, and discipline any person that
violates the rules. The rules may authorize--
``(A) transfer trades or office trades;
``(B) an exchange of--
``(i) futures in connection with a
cash commodity transaction;
``(ii) futures for cash
commodities; or
``(iii) futures for swaps; or
``(C) a futures commission merchant, acting
as principal or agent, to enter into or confirm
the execution of a contract for the purchase or
sale of a commodity for future delivery if the
contract is reported, recorded, or cleared in
accordance with the rules of the contract
market or a derivatives clearing organization.
``(4) Trade execution facility.--The board of trade
shall--
``(A) establish and enforce rules defining,
or specifications detailing, the manner of
operation of the trade execution facility
maintained by the board of trade, including
rules or specifications describing the
operation of any electronic matching platform;
and
``(B) demonstrate that the trade execution
facility operates in accordance with the rules
or specifications.
``(5) Financial integrity of transactions.--The
board of trade shall establish and enforce rules and
procedures for ensuring the financial integrity of
transactions entered into by or through the facilities
of the contract market, including the clearance and
settlement of the transactions with a derivatives
clearing organization.
``(6) Disciplinary procedures.--The board of trade
shall establish and enforce disciplinary procedures
that authorize the board of trade to discipline,
suspend, or expel members or market participants that
violate the rules of the board of trade, or similar
methods for performing the same functions, including
delegation of the functions to third parties.
``(7) Public access.--The board of trade shall
provide the public with access to the rules,
regulations, and contract specifications of the board
of trade.
``(8) Ability to obtain information.--The board of
trade shall establish and enforce rules that will allow
the board of trade to obtain any necessary information
to perform any of the functions described in this
subsection, including the capacity to carry out such
international information-sharing agreements as the
Commission may require.
``(c) Existing Contract Markets.--A board of trade that is
designated as a contract market on the date of the enactment of
the Commodity Futures Modernization Act of 2000 shall be
considered to be a designated contract market under this
section.
``(d) Core Principles for Contract Markets.--
``(1) In general.--To maintain the designation of a
board of trade as a contract market, the board of trade
shall comply with the core principles specified in this
subsection. The board of trade shall have reasonable
discretion in establishing the manner in which it
complies with the core principles.
``(2) Compliance with rules.--The board of trade
shall monitor and enforce compliance with the rules of
the contract market, including the terms and conditions
of any contracts to be traded and any limitations on
access to the contract market.
``(3) Contracts not readily subject to
manipulation.--The board of trade shall list on the
contract market only contracts that are not readily
susceptible to manipulation.
``(4) Monitoring of trading.--The board of trade
shall monitor trading to prevent manipulation, price
distortion, and disruptions of the delivery or cash-
settlement process.
``(5) Position limitations or accountability.--To
reduce the potential threat of market manipulation or
congestion, especially during trading in the delivery
month, the board of trade shall adopt position
limitations or position accountability for speculators,
where necessary and appropriate.
``(6) Emergency authority.--The board of trade
shall adopt rules to provide for the exercise of
emergency authority, in consultation or cooperation
with the Commission, where necessary and appropriate,
including the authority to--
``(A) liquidate or transfer open positions
in any contract;
``(B) suspend or curtail trading in any
contract; and
``(C) require market participants in any
contract to meet special margin requirements.
``(7) Availability of general information.--The
board of trade shall make available to market
authorities, market participants, and the public
information concerning--
``(A) the terms and conditions of the
contracts of the contract market; and
``(B) the mechanisms for executing
transactions on or through the facilities of
the contract market.
``(8) Daily publication of trading information.--
The board of trade shall make public daily information
on settlement prices, volume, open interest, and
opening and closing ranges for actively traded
contracts on the contract market.
``(9) Execution of transactions.--The board of
trade shall provide a competitive, open, and efficient
market and mechanism for executing transactions.
``(10) Trade information.--The board of trade shall
maintain rules and procedures to provide for the
recording and safe storage of all identifying trade
information in a manner that enables the contract
market to use the information for purposes of assisting
in the prevention of customer and market abuses and
providing evidence of any violations of the rules of
the contract market.
``(11) Financial integrity of contracts.--The board
of trade shall establish and enforce rules providing
for the financial integrity of any contracts traded on
the contract market (including the clearance and
settlement of the transactions with a derivatives
clearing organization), and rules to ensure the
financial integrity of any futures commission merchants
and introducing brokers and the protection of customer
funds.
``(12) Protection of market participants.--The
board of trade shall establish and enforce rules to
protect market participants from abusive practices
committed by any party acting as an agent for the
participants.
``(13) Dispute resolution.--The board of trade
shall establish and enforce rules regarding and provide
facilities for alternative dispute resolution as
appropriate for market participants and any market
intermediaries.
``(14) Governance fitness standards.--The board of
trade shall establish and enforce appropriate fitness
standards for directors, members of any disciplinary
committee, members of the contract market, and any
other persons with direct access to the facility
(including any parties affiliated with any of the
persons described in this paragraph).
``(15) Conflicts of interest.--The board of trade
shall establish and enforce rules to minimize conflicts
of interest in the decisionmaking process of the
contract market and establish a process for resolving
such conflicts of interest.
``(16) Composition of boards of mutually owned
contract markets.--In the case of a mutually owned
contract market, the board of trade shall ensure that
the composition of the governing board reflects market
participants.
``(17) Recordkeeping.--The board of trade shall
maintain records of all activities related to the
business of the contract market in a form and manner
acceptable to the Commission for a period of 5 years.
``(18) Antitrust considerations.--Unless necessary
or appropriate to achieve the purposes of this Act, the
board of trade shall endeavor to avoid--
``(A) adopting any rules or taking any
actions that result in any unreasonable
restraints of trade; or
``(B) imposing any material anticompetitive
burden on trading on the contract market.
``(e) Current Agricultural Commodities.--
``(1) Subject to paragraph (2) of this subsection,
a contract for purchase or sale for future delivery of
an agricultural commodity enumerated in section 1a(4)
that is available for trade on a contract market, as of
the date of the enactment of this subsection, may be
traded only on a contract market designated under this
section.
``(2) In order to promote responsible economic or
financial innovation and fair competition, the
Commission, on application by any person, after notice
and public comment and opportunity for hearing, may
prescribe rules and regulations to provide for the
offer and sale of contracts for future delivery or
options on such contracts to be conducted on a
derivatives transaction execution facility.''.
SEC. 111. DERIVATIVES TRANSACTION EXECUTION FACILITIES.
The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended
by inserting after section 5 (as amended by section 110(2)) the
following:
``SEC. 5A. DERIVATIVES TRANSACTION EXECUTION FACILITIES.
``(a) In General.--In lieu of compliance with the contract
market designation requirements of sections 4(a) and 5, a board
of trade may elect to operate as a registered derivatives
transaction execution facility if the facility is--
``(1) designated as a contract market and meets the
requirements of this section; or
``(2) registered as a derivatives transaction
execution facility under subsection (c) of this
section.
``(b) Requirements for Trading.--
``(1) In general.--A registered derivatives
transaction execution facility under subsection (a) may
trade any contract of sale of a commodity for future
delivery (or option on such a contract) on or through
the facility only by satisfying the requirements of
this section.
``(2) Requirements for underlying commodities.--A
registered derivatives transaction execution facility
may trade any contract of sale of a commodity for
future delivery (or option on such a contract) only
if--
``(A) the underlying commodity has a nearly
inexhaustible deliverable supply;
``(B) the underlying commodity has a
deliverable supply that is sufficiently large
that the contract is highly unlikely to be
susceptible to the threat of manipulation;
``(C) the underlying commodity has no cash
market;
``(D)(i) the contract is a security futures
product, and (ii) the registered derivatives
transaction execution facility is a national
securities exchange registered under the
Securities Exchange Act of 1934;
``(E) the Commission determines, based on
the market characteristics, surveillance
history, self-regulatory record, and capacity
of the facility that trading in the contract
(or option) is highly unlikely to be
susceptible to the threat of manipulation; or
``(F) except as provided in section
5(e)(2), the underlying commodity is a
commodity other than an agricultural commodity
enumerated in section 1a(4), and trading access
to the facility is limited to eligible
commercial entities trading for their own
account.
``(3) Eligible traders.--To trade on a registered
derivatives transaction execution facility, a person
shall--
``(A) be an eligible contract participant;
or
``(B) be a person trading through a futures
commission merchant that--
``(i) is registered with the
Commission;
``(ii) is a member of a futures
self-regulatory organization or, if the
person trades only security futures
products on the facility, a national
securities association registered under
section 15A(a) of the Securities
Exchange Act of 1934;
``(iii) is a clearing member of a
derivatives clearing organization; and
``(iv) has net capital of at least
$20,000,000.
``(4) Trading by contract markets.--A board of
trade that is designated as a contract market shall, to
the extent that the contract market also operates a
registered derivatives transaction execution facility--
``(A) provide a physical location for the
contract market trading of the board of trade
that is separate from trading on the
derivatives transaction execution facility of
the board of trade; or
``(B) if the board of trade uses the same
electronic trading system for trading on the
contract market and derivatives transaction
execution facility of the board of trade,
identify whether the electronic trading is
taking place on the contract market or the
derivatives transaction execution facility.
``(c) Criteria for Registration.--
``(1) In general.--To be registered as a registered
derivatives transaction execution facility, the board
of trade shall be required to demonstrate to the
Commission only that the board of trade meets the
criteria specified in subsection (b) and this
subsection.
``(2) Deterrence of abuses.--The board of trade
shall establish and enforce trading and participation
rules that will deter abuses and has the capacity to
detect, investigate, and enforce those rules, including
means to--
``(A) obtain information necessary to
perform the functions required under this
section; or
``(B) use technological means to--
``(i) provide market participants
with impartial access to the market;
and
``(ii) capture information that may
be used in establishing whether rule
violations have occurred.
``(3) Trading procedures.--The board of trade shall
establish and enforce rules or terms and conditions
defining, or specifications detailing, trading
procedures to be used in entering and executing orders
traded on the facilities of the board of trade. The
rules may authorize--
``(A) transfer trades or office trades;
``(B) an exchange of--
``(i) futures in connection with a
cash commodity transaction;
``(ii) futures for cash
commodities; or
``(iii) futures for swaps; or
``(C) a futures commission merchant, acting
as principal or agent, to enter into or confirm
the execution of a contract for the purchase or
sale of a commodity for future delivery if the
contract is reported, recorded, or cleared in
accordance with the rules of the registered
derivatives transaction execution facility or a
derivatives clearing organization.
``(4) Financial integrity of transactions.--The
board of trade shall establish and enforce rules or
terms and conditions providing for the financial
integrity of transactions entered on or through the
facilities of the board of trade, and rules or terms
and conditions to ensure the financial integrity of any
futures commission merchants and introducing brokers
and the protection of customer funds.
``(d) Core Principles for Registered Derivatives
Transaction Execution Facilities.--
``(1) In general.--To maintain the registration of
a board of trade as a derivatives transaction execution
facility, a board of trade shall comply with the core
principles specified in this subsection. The board of
trade shall have reasonable discretion in establishing
the manner in which the board of trade complies with
the core principles.
``(2) Compliance with rules.--The board of trade
shall monitor and enforce the rules of the facility,
including any terms and conditions of any contracts
traded on or through the facility and any limitations
on access to the facility.
``(3) Monitoring of trading.--The board of trade
shall monitor trading in the contracts of the facility
to ensure orderly trading in the contract and to
maintain an orderly market while providing any
necessary trading information to the Commission to
allow the Commission to discharge the responsibilities
of the Commission under the Act.
``(4) Disclosure of general information.--The board
of trade shall disclose publicly and to the Commission
information concerning--
``(A) contract terms and conditions;
``(B) trading conventions, mechanisms, and
practices;
``(C) financial integrity protections; and
``(D) other information relevant to
participation in trading on the facility.
``(5) Daily publication of trading information.--
The board of trade shall make public daily information
on settlement prices, volume, open interest, and
opening and closing ranges for contracts traded on the
facility if the Commission determines that the
contracts perform a significant price discovery
function for transactions in the cash market for the
commodity underlying the contracts.
``(6) Fitness standards.--The board of trade shall
establish and enforce appropriate fitness standards for
directors, members of any disciplinary committee,
members, and any other persons with direct access to
the facility, including any parties affiliated with any
of the persons described in this paragraph.
``(7) Conflicts of interest.--The board of trade
shall establish and enforce rules to minimize conflicts
of interest in the decision making process of the
derivatives transaction execution facility and
establish a process for resolving such conflicts of
interest.
``(8) Recordkeeping.--The board of trade shall
maintain records of all activities related to the
business of the derivatives transaction execution
facility in a form and manner acceptable to the
Commission for a period of 5 years.
``(9) Antitrust considerations.--Unless necessary
or appropriate to achieve the purposes of this Act, the
board of trade shall endeavor to avoid--
``(A) adopting any rules or taking any
actions that result in any unreasonable
restraint of trade; or
``(B) imposing any material anticompetitive
burden on trading on the derivatives
transaction execution facility.
``(e) Use of Broker-Dealers, Depository Institutions, and
Farm Credit System Institutions as Intermediaries.--
``(1) In general.--With respect to transactions
other than transactions in security futures products, a
registered derivatives transaction execution facility
may by rule allow a broker-dealer, depository
institution, or institution of the Farm Credit System
that meets the requirements of paragraph (2) to--
``(A) act as an intermediary in
transactions executed on the facility on behalf
of customers of the broker-dealer, depository
institution, or institution of the Farm Credit
System; and
``(B) receive funds of customers to serve
as margin or security for the transactions.
``(2) Requirements.--The requirements referred to
in paragraph (1) are that--
``(A) the broker-dealer be in good standing
with the Securities and Exchange Commission, or
the depository institution or institution of
the Farm Credit System be in good standing with
Federal bank regulatory agencies (including the
Farm Credit Administration), as applicable; and
``(B) if the broker-dealer, depository
institution, or institution of the Farm Credit
System carries or holds customer accounts or
funds for transactions on the derivatives
transaction execution facility for more than 1
business day, the broker-dealer, depository
institution, or institution of the Farm Credit
System is registered as a futures commission
merchant and is a member of a registered
futures association.
``(3) Implementation.--The Commission shall
cooperate and coordinate with the Securities and
Exchange Commission, the Secretary of the Treasury, and
Federal banking regulatory agencies (including the Farm
Credit Administration) in adopting rules and taking any
other appropriate action to facilitate the
implementation of this subsection.
``(f) Segregation of Customer Funds.--Not later than 180
days after the date of the enactment of the Commodity Futures
Modernization Act of 2000, consistent with regulations adopted
by the Commission, a registered derivatives transaction
execution facility may authorize a futures commission merchant
to offer any customer of the futures commission merchant that
is an eligible contract participant the right to not segregate
the customer funds of the customer that are carried with the
futures commission merchant for purposes of trading on or
through the facilities of the registered derivatives
transaction execution facility.
``(g) Election To Trade Excluded and Exempt Commodities.--
``(1) In general.--Notwithstanding subsection
(b)(2) of this section, a board of trade that is or
elects to become a registered derivatives transaction
execution facility may trade on the facility any
agreements, contracts, or transactions involving
excluded or exempt commodities other than securities,
except contracts of sale for future delivery of exempt
securities under section 3(a)(12) of the Securities
Exchange Act of 1934 as in effect on the date of
enactment of the Futures Trading Act of 1982, that are
otherwise excluded from this Act under section 2(c),
2(d), or 2(g) of this Act, or exempt under section 2(h)
of this Act.
``(2) Exclusive jurisdiction of the commission.--
The Commission shall have exclusive jurisdiction over
agreements, contracts, or transactions described in
paragraph (1) to the extent that the agreements,
contracts, or transactions are traded on a derivatives
transaction execution facility.''.
SEC. 112. DERIVATIVES CLEARING.
(a) In General.--Subtitle A of title IV of the Federal
Deposit Insurance Corporation Improvement Act of 1991 is
amended--
(1) by inserting before the section heading for
section 401, the following new heading:
``CHAPTER 1--BILATERAL AND CLEARING ORGANIZATION NETTING'';
(2) in section 402, by striking ``this subtitle''
and inserting ``this chapter''; and
(3) by inserting after section 407, the following
new chapter:
``CHAPTER 2--MULTILATERAL CLEARING ORGANIZATIONS
``SEC. 408. DEFINITIONS.
For purposes of this chapter, the following definitions
shall apply:
``(1) Multilateral clearing organization.--The term
`multilateral clearing organization' means a system
utilized by more than 2 participants in which the
bilateral credit exposures of participants arising from
the transactions cleared are effectively eliminated and
replaced by a system of guarantees, insurance, or
mutualized risk of loss.
``(2) Over-the-counter derivative instrument.--The
term `over-the-counter derivative instrument'
includes--
``(A) any agreement, contract, or
transaction, including the terms and conditions
incorporated by reference in any such
agreement, contract, or transaction, which is
an interest rate swap, option, or forward
agreement, including a rate floor, rate cap,
rate collar, cross-currency rate swap, basis
swap, and forward rate agreement; a same day-
tomorrow, tomorrow-next, forward, or other
foreign exchange or precious metals agreement;
a currency swap, option, or forward agreement;
an equity index or equity swap, option, or
forward agreement; a debt index or debt swap,
option, or forward agreement; a credit spread
or credit swap, option, or forward agreement; a
commodity index or commodity swap, option, or
forward agreement; and a weather swap, weather
derivative, or weather option;
``(B) any agreement, contract or
transaction similar to any other agreement,
contract, or transaction referred to in this
clause that is presently, or in the future
becomes, regularly entered into by parties that
participate in swap transactions (including
terms and conditions incorporated by reference
in the agreement) and that is a forward, swap,
or option on 1 or more occurrences of any
event, rates, currencies, commodities, equity
securities or other equity instruments, debt
securities or other debt instruments, economic
or other indices or measures of economic or
other risk or value;
``(C) any agreement, contract, or
transaction excluded from the Commodity
Exchange Act under section 2(c), 2(d), 2(f), or
2(g) of such Act, or exempted under section
2(h) or 4(c) of such Act; and
``(D) any option to enter into any, or any
combination of, agreements, contracts or
transactions referred to in this subparagraph.
``(3) Other definitions.--The terms `insured State
nonmember bank', `State member bank', and `affiliate'
have the same meanings as in section 3 of the Federal
Deposit Insurance Act.
``SEC. 409. MULTILATERAL CLEARING ORGANIZATIONS.
``(a) In General.--Except with respect to clearing
organizations described in subsection (b), no person may
operate a multilateral clearing organization for over-the-
counter derivative instruments, or otherwise engage in
activities that constitute such a multilateral clearing
organization unless the person is a national bank, a State
member bank, an insured State nonmember bank, an affiliate of a
national bank, a State member bank, or an insured State
nonmember bank, or a corporation chartered under section 25A of
the Federal Reserve Act.
``(b) Clearing Organizations.--Subsection (a) shall not
apply to any clearing organization that--
``(1) is registered as a clearing agency under the
Securities Exchange Act of 1934;
``(2) is registered as a derivatives clearing
organization under the Commodity Exchange Act; or
``(3) is supervised by a foreign financial
regulator that the Comptroller of the Currency, the
Board of Governors of the Federal Reserve System, the
Federal Deposit Insurance Corporation, the Securities
and Exchange Commission, or the Commodity Futures
Trading Commission, as applicable, has determined
satisfies appropriate standards.''.
(b) Resolution of Clearing Banks.--The Federal Reserve Act
(12 U.S.C. 221 et seq.) is amended by inserting after section
9A the following new section:
``SEC. 9B. RESOLUTION OF CLEARING BANKS.
``(a) Conservatorship or Receivership.--
``(1) Appointment.--The Board may appoint a
conservator or receiver to take possession and control
of any uninsured State member bank which operates, or
operates as, a multilateral clearing organization
pursuant to section 409 of the Federal Deposit
Insurance Corporation Improvement Act of 1991 to the
same extent and in the same manner as the Comptroller
of the Currency may appoint a conservator or receiver
for a national bank.
``(2) Powers.--The conservator or receiver for an
uninsured State member bank referred to in paragraph
(1) shall exercise the same powers, functions, and
duties, subject to the same limitations, as a
conservator or receiver for a national bank.
``(b) Board Authority.--The Board shall have the same
authority with respect to any conservator or receiver appointed
under subsection (a), and the uninsured State member bank for
which the conservator or receiver has been appointed, as the
Comptroller of the Currency has with respect to a conservator
or receiver for a national bank and the national bank for which
the conservator or receiver has been appointed.
``(c) Bankruptcy Proceedings.--The Board (in the case of an
uninsured State member bank which operates, or operates as,
such a multilateral clearing organization) may direct a
conservator or receiver appointed for the bank to file a
petition pursuant to title 11, United States Code, in which
case, title 11, United States Code, shall apply to the bank in
lieu of otherwise applicable Federal or State insolvency
law.''.
(c) Technical and Conforming Amendments to Title 11, United
States Code.--
(1) Bankruptcy code debtors.--Section 109(b)(2) of
title 11, United States Code, is amended by striking
``; or'' and inserting the following: ``, except that
an uninsured State member bank, or a corporation
organized under section 25A of the Federal Reserve Act,
which operates, or operates as, a multilateral clearing
organization pursuant to section 409 of the Federal
Deposit Insurance Corporation Improvement Act of 1991
may be a debtor if a petition is filed at the direction
of the Board of Governors of the Federal Reserve
System; or''.
(2) Chapter 7 debtors.--Section 109(d) of title 11,
United States Code, is amended to read as follows:
``(d) Only a railroad, a person that may be a debtor under
chapter 7 of this title (except a stockbroker or a commodity
broker), and an uninsured State member bank, or a corporation
organized under section 25A of the Federal Reserve Act, which
operates, or operates as, a multilateral clearing organization
pursuant to section 409 of the Federal Deposit Insurance
Corporation Improvement Act of 1991 may be a debtor under
chapter 11 of this title.''.
(3) Definition of financial institution.--Section
101(22) of title 11, United States Code, is amended to
read as follows:
``(22) the term `financial institution'--
``(A) means--
``(i) a Federal reserve bank or an
entity (domestic or foreign) that is a
commercial or savings bank, industrial
savings bank, savings and loan
association, trust company, or receiver
or conservator for such entity and,
when any such Federal reserve bank,
receiver, conservator, or entity is
acting as agent or custodian for a
customer in connection with a
securities contract, as defined in
section 741 of this title, the
customer; or
``(ii) in connection with a
securities contract, as defined in
section 741 of this title, an
investment company registered under the
Investment Company Act of 1940; and
``(B) includes any person described in
subparagraph (A) which operates, or operates
as, a multilateral clearing organization
pursuant to section 409 of the Federal Deposit
Insurance Corporation Improvement Act of
1991;''.
(4) Definition of uninsured state member bank.--
Section 101 of title 11, United States Code, is amended
by inserting after paragraph (54) the following new
paragraph--
``(54A) the term `uninsured State member bank' means a
State member bank (as defined in section 3 of the Federal
Deposit Insurance Act) the deposits of which are not insured by
the Federal Deposit Insurance Corporation; and''.
(5) Subchapter v of chapter 7.--
(A) In general.--Section 103 of title 11,
United States Code, is amended--
(i) by redesignating subsections
(e) through (i) as subsections (f)
through (j), respectively; and
(ii) by inserting after subsection
(d) the following new subsection:
``(e) Scope of Application.--Subchapter V of chapter 7 of
this title shall apply only in a case under such chapter
concerning the liquidation of an uninsured State member bank,
or a corporation organized under section 25A of the Federal
Reserve Act, which operates, or operates as, a multilateral
clearing organization pursuant to section 409 of the Federal
Deposit Insurance Corporation Improvement Act of 1991.''.
(B) Clearing bank liquidation.--Chapter 7
of title 11, United States Code, is amended by
adding at the end the following new subchapter:
``SUBCHAPTER V--CLEARING BANK LIQUIDATION
``Sec. 781. Definitions
``For purposes of this subchapter, the following
definitions shall apply:
``(1) Board.--The term `Board' means the Board of
Governors of the Federal Reserve System.
``(2) Depository institution.--The term `depository
institution' has the same meaning as in section 3 of
the Federal Deposit Insurance Act.
``(3) Clearing bank.--The term `clearing bank'
means an uninsured State member bank, or a corporation
organized under section 25A of the Federal Reserve Act,
which operates, or operates as, a multilateral clearing
organization pursuant to section 409 of the Federal
Deposit Insurance Corporation Improvement Act of 1991.
``Sec. 782. Selection of trustee
``(a) In General.--
``(1) Appointment.--Notwithstanding any other
provision of this title, the conservator or receiver
who files the petition shall be the trustee under this
chapter, unless the Board designates an alternative
trustee.
``(2) Successor.--The Board may designate a
successor trustee if required.
``(b) Authority of Trustee.--Whenever the Board appoints or
designates a trustee, chapter 3 and sections 704 and 705 of
this title shall apply to the Board in the same way and to the
same extent that they apply to a United States trustee.
``Sec. 783. Additional powers of trustee
``(a) Distribution of Property Not of the Estate.--The
trustee under this subchapter has power to distribute property
not of the estate, including distributions to customers that
are mandated by subchapters III and IV of this chapter.
``(b) Disposition of Institution.--The trustee under this
subchapter may, after notice and a hearing--
``(1) sell the clearing bank to a depository
institution or consortium of depository institutions
(which consortium may agree on the allocation of the
clearing bank among the consortium);
``(2) merge the clearing bank with a depository
institution;
``(3) transfer contracts to the same extent as
could a receiver for a depository institution under
paragraphs (9) and (10) of section 11(e) of the Federal
Deposit Insurance Act;
``(4) transfer assets or liabilities to a
depository institution;
``(5) transfer assets and liabilities to a bridge
bank as provided in paragraphs (1), (3)(A), (5), (6),
of section 11(n) of the Federal Deposit Insurance Act,
paragraphs (9) through (13) of such section, and
subparagraphs (A) through (H) and subparagraph (K) of
paragraph (4) of such section 11(n), except that--
``(A) the bridge bank to which such assets
or liabilities are transferred shall be treated
as a clearing bank for the purpose of this
subsection; and
``(B) any references in any such provision
of law to the Federal Deposit Insurance
Corporation shall be construed to be references
to the appointing agency and that references to
deposit insurance shall be omitted.
``(c) Certain Transfers Included.--Any reference in this
section to transfers of liabilities includes a ratable transfer
of liabilities within a priority class.
``Sec. 784. Right to be heard
``The Board or a Federal reserve bank (in the case of a
clearing bank that is a member of that bank) may raise and may
appear and be heard on any issue in a case under this
subchapter.''.
(6) Definitions of clearing organization, contract
market, and related definitions.--
(A) Section 761(2) of title 11, United
States Code, is amended to read as follows:
``(2) `clearing organization' means a derivatives
clearing organization registered under the Act;''.
(B) Section 761(7) of title 11, United
States Code, is amended to read as follows:
``(7) `contract market' means a registered
entity;''.
(C) Section 761(8) of title 11, United
States Code, is amended to read as follows:
``(8) `contract of sale', `commodity', `derivatives
clearing organization', `future delivery', `board of
trade', `registered entity', and `futures commission
merchant' have the meanings assigned to those terms in
the Act;''.
(d) Clerical Amendment.--The table of sections for chapter
7 of title 11, United States Code, is amended by adding at the
end the following new items:
``SUBCHAPTER V--CLEARING BANK LIQUIDATION
``Sec.
``781. Definitions.
``782. Selection of trustee.
``783. Additional powers of trustee.
``784. Right to be heard.''.
(e) Resolution of Edge Act Corporations.--The 16th
undesignated paragraph of section 25A of the Federal Reserve
Act (12 U.S.C. 624) is amended to read as follows:
``(16) Appointment of receiver or conservator.--
``(A) In general.--The Board may appoint a
conservator or receiver for a corporation
organized under the provisions of this section
to the same extent and in the same manner as
the Comptroller of the Currency may appoint a
conservator or receiver for a national bank,
and the conservator or receiver for such
corporation shall exercise the same powers,
functions, and duties, subject to the same
limitations, as a conservator or receiver for a
national bank.
``(B) Equivalent authority.--The Board
shall have the same authority with respect to
any conservator or receiver appointed for a
corporation organized under the provisions of
this section under this paragraph and any such
corporation as the Comptroller of the Currency
has with respect to a conservator or receiver
of a national bank and the national bank for
which a conservator or receiver has been
appointed.
``(C) Title 11 petitions.--The Board may
direct the conservator or receiver of a
corporation organized under the provisions of
this section to file a petition pursuant to
title 11, United States Code, in which case,
title 11, United States Code, shall apply to
the corporation in lieu of otherwise applicable
Federal or State insolvency law.''.
(f) Derivatives Clearing Organizations.--The Commodity
Exchange Act (7 U.S.C. 1 et seq.) is amended by inserting after
section 5a, as added by section 111 of this Act, the following:
``SEC. 5B. DERIVATIVES CLEARING ORGANIZATIONS.
``(a) Registration Requirement.--It shall be unlawful for a
derivatives clearing organization, unless registered with the
Commission, directly or indirectly to make use of the mails or
any means or instrumentality of interstate commerce to perform
the functions of a derivatives clearing organization described
in section 1a(9) of this Act with respect to a contract of sale
of a commodity for future delivery (or option on such a
contract) or option on a commodity, in each case unless the
contract or option--
``(1) is excluded from this Act by section
2(a)(1)(C)(i), 2(c), 2(d), 2(f), or 2(g) of this Act or
title IV of the Commodity Futures Modernization Act of
2000, or exempted under section 2(h) or 4(c) of this
Act; or
``(2) is a security futures product cleared by a
clearing agency registered under the Securities
Exchange Act of 1934.
``(b) Voluntary Registration.--A derivatives clearing
organization that clears agreements, contracts, or transactions
excluded from this Act by section 2(c), 2(d), 2(f) or 2(g) of
this Act or title IV of the Commodity Futures Modernization Act
of 2000, or exempted under section 2(h) or 4(c) of this Act, or
other over-the-counter derivative instruments (as defined in
the Federal Deposit Insurance Corporation Improvement Act of
1991) may register with the Commission as a derivatives
clearing organization.
``(c) Registration of Derivatives Clearing Organizations.--
``(1) Application.--A person desiring to register
as a derivatives clearing organization shall submit to
the Commission an application in such form and
containing such information as the Commission may
require for the purpose of making the determinations
required for approval under paragraph (2).
``(2) Core principles.--
``(A) In general.--To be registered and to
maintain registration as a derivatives clearing
organization, an applicant shall demonstrate to
the Commission that the applicant complies with
the core principles specified in this
paragraph. The applicant shall have reasonable
discretion in establishing the manner in which
it complies with the core principles.
``(B) Financial resources.--The applicant
shall demonstrate that the applicant has
adequate financial, operational, and managerial
resources to discharge the responsibilities of
a derivatives clearing organization.
``(C) Participant and product
eligibility.--The applicant shall establish--
``(i) appropriate admission and
continuing eligibility standards
(including appropriate minimum
financial requirements) for members of
and participants in the organization;
and
``(ii) appropriate standards for
determining eligibility of agreements,
contracts, or transactions submitted to
the applicant.
``(D) Risk management.--The applicant shall
have the ability to manage the risks associated
with discharging the responsibilities of a
derivatives clearing organization through the
use of appropriate tools and procedures.
``(E) Settlement procedures.--The applicant
shall have the ability to--
``(i) complete settlements on a
timely basis under varying
circumstances;
``(ii) maintain an adequate record
of the flow of funds associated with
each transaction that the applicant
clears; and
``(iii) comply with the terms and
conditions of any permitted netting or
offset arrangements with other clearing
organizations.
``(F) Treatment of funds.--The applicant
shall have standards and procedures designed to
protect and ensure the safety of member and
participant funds.
``(G) Default rules and procedures.--The
applicant shall have rules and procedures
designed to allow for efficient, fair, and safe
management of events when members or
participants become insolvent or otherwise
default on their obligations to the derivatives
clearing organization.
``(H) Rule enforcement.--The applicant
shall--
``(i) maintain adequate
arrangements and resources for the
effective monitoring and enforcement of
compliance with rules of the applicant
and for resolution of disputes; and
``(ii) have the authority and
ability to discipline, limit, suspend,
or terminate a member's or
participant's activities for violations
of rules of the applicant.
``(I) System safeguards.--The applicant
shall demonstrate that the applicant--
``(i) has established and will
maintain a program of oversight and
risk analysis to ensure that the
automated systems of the applicant
function properly and have adequate
capacity and security; and
``(ii) has established and will
maintain emergency procedures and a
plan for disaster recovery, and will
periodically test backup facilities
sufficient to ensure daily processing,
clearing, and settlement of
transactions.
``(J) Reporting.--The applicant shall
provide to the Commission all information
necessary for the Commission to conduct the
oversight function of the applicant with
respect to the activities of the derivatives
clearing organization.
``(K) Recordkeeping.--The applicant shall
maintain records of all activities related to
the business of the applicant as a derivatives
clearing organization in a form and manner
acceptable to the Commission for a period of 5
years.
``(L) Public information.--The applicant
shall make information concerning the rules and
operating procedures governing the clearing and
settlement systems (including default
procedures) available to market participants.
``(M) Information sharing.--The applicant
shall--
``(i) enter into and abide by the
terms of all appropriate and applicable
domestic and international information-
sharing agreements; and
``(ii) use relevant information
obtained from the agreements in
carrying out the clearing
organization's risk management program.
``(N) Antitrust considerations.--Unless
appropriate to achieve the purposes of this
Act, the derivatives clearing organization
shall avoid--
``(i) adopting any rule or taking
any action that results in any
unreasonable restraint of trade; or
``(ii) imposing any material
anticompetitive burden on trading on
the contract market.
``(3) Orders concerning competition.--A derivatives
clearing organization may request the Commission to
issue an order concerning whether a rule or practice of
the applicant is the least anticompetitive means of
achieving the objectives, purposes, and policies of
this Act.
``(d) Existing Derivatives Clearing Organizations.--A
derivatives clearing organization shall be deemed to be
registered under this section to the extent that the
derivatives clearing organization clears agreements, contracts,
or transactions for a board of trade that has been designated
by the Commission as a contract market for such agreements,
contracts, or transactions before the date of enactment of this
section.
``(e) Appointment of Trustee.--
``(1) In general.--If a proceeding under section 5e
results in the suspension or revocation of the
registration of a derivatives clearing organization, or
if a derivatives clearing organization withdraws from
registration, the Commission, on notice to the
derivatives clearing organization, may apply to the
appropriate United States district court where the
derivatives clearing organization is located for the
appointment of a trustee.
``(2) Assumption of jurisdiction.--If the
Commission applies for appointment of a trustee under
paragraph (1)--
``(A) the court may take exclusive
jurisdiction over the derivatives clearing
organization and the records and assets of the
derivatives clearing organization, wherever
located; and
``(B) if the court takes jurisdiction under
subparagraph (A), the court shall appoint the
Commission, or a person designated by the
Commission, as trustee with power to take
possession and continue to operate or terminate
the operations of the derivatives clearing
organization in an orderly manner for the
protection of participants, subject to such
terms and conditions as the court may
prescribe.
``(f) Linking of Regulated Clearing Facilities.--
``(1) In general.--The Commission shall facilitate
the linking or coordination of derivatives clearing
organizations registered under this Act with other
regulated clearance facilities for the coordinated
settlement of cleared transactions.
``(2) Coordination.--In carrying out paragraph (1),
the Commission shall coordinate with the Federal
banking agencies and the Securities and Exchange
Commission.''.
SEC. 113. COMMON PROVISIONS APPLICABLE TO REGISTERED ENTITIES.
The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended
by inserting after section 5b (as added by section 112(f)) the
following:
``SEC. 5C. COMMON PROVISIONS APPLICABLE TO REGISTERED ENTITIES.
``(a) Acceptable Business Practices Under Core
Principles.--
``(1) In general.--Consistent with the purposes of
this Act, the Commission may issue interpretations, or
approve interpretations submitted to the Commission, of
sections 5(d), 5a(d), and 5b(d)(2) to describe what
would constitute an acceptable business practice under
such sections.
``(2) Effect of interpretation.--An interpretation
issued under paragraph (1) shall not provide the
exclusive means for complying with such sections.
``(b) Delegation of Functions Under Core Principles.--
``(1) In general.--A contract market or derivatives
transaction execution facility may comply with any
applicable core principle through delegation of any
relevant function to a registered futures association
or another registered entity.
``(2) Responsibility.--A contract market or
derivatives transaction execution facility that
delegates a function under paragraph (1) shall remain
responsible for carrying out the function.
``(3) Noncompliance.--If a contract market or
derivatives transaction execution facility that
delegates a function under paragraph (1) becomes aware
that a delegated function is not being performed as
required under this Act, the contract market or
derivatives transaction execution facility shall
promptly take steps to address the noncompliance.
``(c) New Contracts, New Rules, and Rule Amendments.--
``(1) In general.--Subject to paragraph (2), a
registered entity may elect to list for trading or
accept for clearing any new contract or other
instrument, or may elect to approve and implement any
new rule or rule amendment, by providing to the
Commission (and the Secretary of the Treasury, in the
case of a contract of sale of a government security for
future delivery (or option on such a contract) or a
rule or rule amendment specifically related to such a
contract) a written certification that the new contract
or instrument or clearing of the new contract or
instrument, new rule, or rule amendment complies with
this Act (including regulations under this Act).
``(2) Prior approval.--
``(A) In general.--A registered entity may
request that the Commission grant prior
approval to any new contract or other
instrument, new rule, or rule amendment.
``(B) Prior approval required.--
Notwithstanding any other provision of this
section, a designated contract market shall
submit to the Commission for prior approval
each rule amendment that materially changes the
terms and conditions, as determined by the
Commission, in any contract of sale for future
delivery of a commodity specifically enumerated
in section 1a(4) (or any option thereon) traded
through its facilities if the rule amendment
applies to contracts and delivery months which
have already been listed for trading and have
open interest.
``(C) Deadline.--If prior approval is
requested under subparagraph (A), the
Commission shall take final action on the
request not later than 90 days after submission
of the request, unless the person submitting
the request agrees to an extension of the time
limitation established under this subparagraph.
``(3) Approval.--The Commission shall approve any
such new contract or instrument, new rule, or rule
amendment unless the Commission finds that the new
contract or instrument, new rule, or rule amendment
would violate this Act.
``(d) Violation of Core Principles.--
``(1) In general.--If the Commission determines, on
the basis of substantial evidence, that a registered
entity is violating any applicable core principle
specified in section 5(d), 5a(d), or 5b(d)(2), the
Commission shall--
``(A) notify the registered entity in
writing of the determination; and
``(B) afford the registered entity an
opportunity to make appropriate changes to
bring the registered entity into compliance
with the core principles.
``(2) Failure to make changes.--If, not later than
30 days after receiving a notification under paragraph
(1), a registered entity fails to make changes that, in
the opinion of the Commission, are necessary to comply
with the core principles, the Commission may take
further action in accordance with this Act.
``(e) Reservation of Emergency Authority.--Nothing in this
section shall limit or in any way affect the emergency powers
of the Commission provided in section 8a(9).''.
SEC. 114. EXEMPT BOARDS OF TRADE.
The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended
by inserting after section 5c (as added by section 113) the
following:
``SEC. 5D. EXEMPT BOARDS OF TRADE.
``(a) Election To Register With the Commission.--A board of
trade that meets the requirements of subsection (b) of this
section may operate as an exempt board of trade on receipt from
the board of trade of a notice, provided in such manner as the
Commission may by rule or regulation prescribe, that the board
of trade elects to operate as an exempt board of trade. Except
as otherwise provided in this section, no provision of this Act
(other than subparagraphs (C) and (D) of section 2(a)(1) and
section 12(e)(2)(B)) shall apply with respect to a contract of
sale of a commodity for future delivery (or option on such a
contract) traded on or through the facilities of an exempt
board of trade.
``(b) Criteria for Exemption.--To qualify for an exemption
under subsection (a), a board of trade shall limit trading on
or through the facilities of the board of trade to contracts of
sale of a commodity for future delivery (or options on such
contracts or on a commodity)--
``(1) for which the underlying commodity has--
``(A) a nearly inexhaustible deliverable
supply;
``(B) a deliverable supply that is
sufficiently large, and a cash market
sufficiently liquid, to render any contract
traded on the commodity highly unlikely to be
susceptible to the threat of manipulation; or
``(C) no cash market;
``(2) that are entered into only between persons
that are eligible contract participants at the time at
which the persons enter into the contract; and
``(3) that are not contracts of sale (or options on
such a contract or on a commodity) for future delivery
of any security, including any group or index of
securities or any interest in, or based on the value
of, any security or any group or index of securities.
``(c) Antimanipulation Requirements.--A party to a contract
of sale of a commodity for future delivery (or option on such a
contract or on a commodity) that is traded on an exempt board
of trade shall be subject to sections 4b, 4c(b), 4o, 6(c), and
9(a)(2), and the Commission shall enforce those provisions with
respect to any such trading.
``(d) Price Discovery.--If the Commission finds that an
exempt board of trade is a significant source of price
discovery for transactions in the cash market for the commodity
underlying any contract, agreement, or transaction traded on or
through the facilities of the board of trade, the board of
trade shall disseminate publicly on a daily basis trading
volume, opening and closing price ranges, open interest, and
other trading data as appropriate to the market.
``(e) Jurisdiction.--The Commission shall have exclusive
jurisdiction over any account, agreement, contract, or
transaction involving a contract of sale of a commodity for
future delivery, or option on such a contract or on a
commodity, to the extent that the account, agreement, contract,
or transaction is traded on an exempt board of trade.
``(f) Subsidiaries.--A board of trade that is designated as
a contract market or registered as a derivatives transaction
execution facility may operate an exempt board of trade by
establishing a separate subsidiary or other legal entity and
otherwise satisfying the requirements of this section.
``(g) An exempt board of trade that meets the requirements
of subsection (b) shall not represent to any person that the
board of trade is registered with, or designated, recognized,
licensed, or approved by the Commission.''.
SEC. 115. SUSPENSION OR REVOCATION OF DESIGNATION AS CONTRACT MARKET.
Section 5e of the Commodity Exchange Act (7 U.S.C. 7b) (as
redesignated by section 20(1)) is amended to read as follows:
``SEC. 5E. SUSPENSION OR REVOCATION OF DESIGNATION AS REGISTERED
ENTITY.
``The failure of a registered entity to comply with any
provision of this Act, or any regulation or order of the
Commission under this Act, shall be cause for the suspension of
the registered entity for a period not to exceed 180 days, or
revocation of designation as a registered entity in accordance
with the procedures and subject to the judicial review provided
in section 6(b).''.
SEC. 116. AUTHORIZATION OF APPROPRIATIONS.
Section 12(d) of the Commodity Exchange Act (7 U.S.C.
16(d)) is amended by striking ``2000'' and inserting ``2005''.
SEC. 117. PREEMPTION.
Section 12 of the Commodity Exchange Act (7 U.S.C. 16(e))
is amended by striking subsection (e) and inserting the
following:
``(e) Relation to Other Law, Departments, or Agencies.--
``(1) Nothing in this Act shall supersede or
preempt--
``(A) criminal prosecution under any
Federal criminal statute;
``(B) the application of any Federal or
State statute (except as provided in paragraph
(2)), including any rule or regulation
thereunder, to any transaction in or involving
any commodity, product, right, service, or
interest--
``(i) that is not conducted on or
subject to the rules of a registered
entity or exempt board of trade;
``(ii) (except as otherwise
specified by the Commission by rule or
regulation) that is not conducted on or
subject to the rules of any board of
trade, exchange, or market located
outside the United States, its
territories or possessions; or
``(iii) that is not subject to
regulation by the Commission under
section 4c or 19; or
``(C) the application of any Federal or
State statute, including any rule or regulation
thereunder, to any person required to be
registered or designated under this Act who
shall fail or refuse to obtain such
registration or designation.
``(2) This Act shall supersede and preempt the
application of any State or local law that prohibits or
regulates gaming or the operation of bucket shops
(other than antifraud provisions of general
applicability) in the case of--
``(A) an electronic trading facility
excluded under section 2(e) of this Act;
``(B) an agreement, contract, or
transaction that is excluded from this Act
under section 2(c), 2(d), 2(f), or 2(g) of this
Act or title IV of the Commodity Futures
Modernization Act of 2000, or exempted under
section 2(h) or 4(c) of this Act (regardless of
whether any such agreement, contract, or
transaction is otherwise subject to this
Act).''.
SEC. 118. PREDISPUTE RESOLUTION AGREEMENTS FOR INSTITUTIONAL CUSTOMERS.
Section 14 of the Commodity Exchange Act (7 U.S.C. 18) is
amended by striking subsection (g) and inserting the following:
``(g) Predispute Resolution Agreements for Institutional
Customers.--Nothing in this section prohibits a registered
futures commission merchant from requiring a customer that is
an eligible contract participant, as a condition to the
commission merchant's conducting a transaction for the
customer, to enter into an agreement waiving the right to file
a claim under this section.''.
SEC. 119. CONSIDERATION OF COSTS AND BENEFITS AND ANTITRUST LAWS.
Section 15 of the Commodity Exchange Act (7 U.S.C. 19) is
amended by striking ``Sec. 15. The Commission'' and inserting
the following:
``SEC. 15. CONSIDERATION OF COSTS AND BENEFITS AND ANTITRUST LAWS.
``(a) Costs and Benefits.--
``(1) In general.--Before promulgating a regulation
under this Act or issuing an order (except as provided
in paragraph (3)), the Commission shall consider the
costs and benefits of the action of the Commission.
``(2) Considerations.--The costs and benefits of
the proposed Commission action shall be evaluated in
light of--
``(A) considerations of protection of
market participants and the public;
``(B) considerations of the efficiency,
competitiveness, and financial integrity of
futures markets;
``(C) considerations of price discovery;
``(D) considerations of sound risk
management practices; and
``(E) other public interest considerations.
``(3) Applicability.--This subsection does not
apply to the following actions of the Commission:
``(A) An order that initiates, is part of,
or is the result of an adjudicatory or
investigative process of the Commission.
``(B) An emergency action.
``(C) A finding of fact regarding
compliance with a requirement of the
Commission.
``(b) Antitrust Laws.--The Commission''.
SEC. 120. CONTRACT ENFORCEMENT BETWEEN ELIGIBLE COUNTERPARTIES.
Section 22(a) of the Commodity Exchange Act (7 U.S.C.
25(a)) is amended by adding at the end the following:
``(4) Contract enforcement between eligible
counterparties.--No agreement, contract, or transaction
between eligible contract participants or persons
reasonably believed to be eligible contract
participants, and no hybrid instrument sold to any
investor, shall be void, voidable, or unenforceable,
and no such party shall be entitled to rescind, or
recover any payment made with respect to, such an
agreement, contract, transaction, or instrument under
this section or any other provision of Federal or State
law, based solely on the failure of the agreement,
contract, transaction, or instrument to comply with the
terms or conditions of an exemption or exclusion from
any provision of this Act or regulations of the
Commission.''.
SEC. 121. SPECIAL PROCEDURES TO ENCOURAGE AND FACILITATE BONA FIDE
HEDGING BY AGRICULTURAL PRODUCERS.
The Commodity Exchange Act, as otherwise amended by this
Act, is amended by inserting after section 4o the following:
``SEC. 4P. SPECIAL PROCEDURES TO ENCOURAGE AND FACILITATE BONA FIDE
HEDGING BY AGRICULTURAL PRODUCERS.
``(a) Authority.--The Commission shall consider issuing
rules or orders which--
``(1) prescribe procedures under which each
contract market is to provide for orderly delivery,
including temporary storage costs, of any agricultural
commodity enumerated in section 1a(4) which is the
subject of a contract for purchase or sale for future
delivery;
``(2) increase the ease with which domestic
agricultural producers may participate in contract
markets, including by addressing cost and margin
requirements, so as to better enable the producers to
hedge price risk associated with their production;
``(3) provide flexibility in the minimum quantities
of such agricultural commodities that may be the
subject of a contract for purchase or sale for future
delivery that is traded on a contract market, to better
allow domestic agricultural producers to hedge such
price risk; and
``(4) encourage contract markets to provide
information and otherwise facilitate the participation
of domestic agricultural producers in contract markets.
``(b) Report.--Within 1 year after the date of enactment of
this section, the Commission shall submit to the Committee on
Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate a report
on the steps it has taken to implement this section and on the
activities of contract markets pursuant to this section.''.
SEC. 122. RULE OF CONSTRUCTION.
Except as expressly provided in this Act or an amendment
made by this Act, nothing in this Act or an amendment made by
this Act supersedes, affects, or otherwise limits or expands
the scope and applicability of laws governing the Securities
and Exchange Commission.
SEC. 123. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Commodity Exchange Act.--
(1) Section 1a of the Commodity Exchange Act (7
U.S.C. 1a) (as amended by section 101) is amended--
(A) in paragraphs (5), (6), (16), (17),
(20), and (23), by inserting ``or derivatives
transaction execution facility'' after
``contract market'' each place it appears; and
(B) in paragraph (24)--
(i) in the paragraph heading, by
striking ``contract market'' and
inserting ``registered entity'';
(ii) by striking ``contract
market'' each place it appears and
inserting ``registered entity''; and
(iii) by adding at the end the
following:
``A participant in an alternative trading system that
is designated as a contract market pursuant to section
5f is deemed a member of the contract market for
purposes of transactions in security futures products
through the contract market.''.
(2) Section 2 of the Commodity Exchange Act (7
U.S.C. 2, 2a, 4, 4a, 3) is amended--
(A) by striking ``Sec. 2. (a)(1)(A)(i)
The'' and inserting the following:
``SEC. 2. JURISDICTION OF COMMISSION; LIABILITY OF PRINCIPAL FOR ACT OF
AGENT; COMMODITY FUTURES TRADING COMMISSION;
TRANSACTION IN INTERSTATE COMMERCE.
``(a) Jurisdiction of Commission; Commodity Futures Trading
Commission.--
``(1) Jurisdiction of commission.--
``(A) In general.--The''; and
(B) in subsection (a)(1)--
(i) in subparagraph (A) (as amended
by subparagraph (A) of this
paragraph)--
(II) by striking
``subparagraph (B) of this
subparagraph'' and inserting
``subparagraphs (C) and (D) of
this paragraph and subsections
(c) through (i) of this
section'';
(III) by striking
``contract market designated
pursuant to section 5 of this
Act'' and inserting ``contract
market designated or
derivatives transaction
execution facility registered
pursuant to section 5 or 5a'';
(IV) by striking clause
(ii); and
(V) in clause (iii), by
striking ``(iii) The'' and
inserting the following:
``(B) Liability of principal for act of
agent.--The''; and
(ii) in subparagraph (B)--
(I) by striking ``(B)'' and
inserting ``(C)'';
(II) in clause (v)--
(aa) by striking
``section 3 of the
Securities Act of
1933''; and
(bb) by inserting
``or subparagraph (D)''
after ``subparagraph'';
and
(III) by moving clauses (i)
through (v) 4 ems to the right;
(C) in subsection (a)(7), by striking
``contract market'' and inserting ``registered
entity'';
(D) in subsection (a)(8)(B)(ii)--
(i) in the first sentence, by
striking ``designation as a contract
market'' and inserting ``designation or
registration as a contract market or
derivatives transaction execution
facility'';
(ii) in the second sentence, by
striking ``designate a board of trade
as a contract market'' and inserting
``designate or register a board of
trade as a contract market or
derivatives transaction execution
facility''; and
(iii) in the fourth sentence, by
striking ``designating, or refusing,
suspending, or revoking the designation
of, a board of trade as a contract
market involving transactions for
future delivery referred to in this
clause or in considering possible
emergency action under section 8a(9) of
this Act'' and inserting ``designating,
registering, or refusing, suspending,
or revoking the designation or
registration of, a board of trade as a
contract market or derivatives
transaction execution facility
involving transactions for future
delivery referred to in this clause or
in considering any possible action
under this Act (including without
limitation emergency action under
section 8a(9))'', and by striking
``designation, suspension, revocation,
or emergency action'' and inserting
``designation, registration,
suspension, revocation, or action'';
and
(E) in subsection (a), by moving paragraphs
(2) through (9) 2 ems to the right.
(3) Section 4 of the Commodity Exchange Act (7
U.S.C. 6) is amended--
(A) in subsection (a)--
(i) in paragraph (1), by striking
``designated by the Commission as a
`contract market' for'' and inserting
``designated or registered by the
Commission as a contract market or
derivatives transaction execution
facility for'';
(ii) in paragraph (2), by striking
``member of such''; and
(iii) in paragraph (3), by
inserting ``or derivatives transaction
execution facility'' after ``contract
market''; and
(B) in subsection (c)--
(i) in paragraph (1)--
(I) by striking
``designated as a contract
market'' and inserting
``designated or registered as a
contract market or derivatives
transaction execution
facility''; and
(II) by striking ``section
2(a)(1)(B)'' and inserting
``subparagraphs (C)(ii) and (D)
of section 2(a)(1), except that
the Commission and the
Securities and Exchange
Commission may by rule,
regulation, or order jointly
exclude any agreement,
contract, or transaction from
section 2(a)(1)(D)''; and
(ii) in paragraph (2)(B)(ii), by
inserting ``or derivatives transaction
execution facility'' after ``contract
market''.
(4) Section 4a of the Commodity Exchange Act (7
U.S.C. 6a) is amended--
(A) in subsection (a)--
(i) in the first sentence, by
inserting ``or derivatives transaction
execution facilities'' after ``contract
markets''; and
(ii) in the second sentence, by
inserting ``or derivatives transaction
execution facility'' after ``contract
market'';
(B) in subsection (b)--
(i) in paragraph (1), by inserting
``, or derivatives transaction
execution facility or facilities,''
after ``markets''; and
(ii) in paragraph (2), by inserting
``or derivatives transaction execution
facility'' after ``contract market'';
and
(C) in subsection (e)--
(i) by striking ``contract market
or'' each place it appears and
inserting ``contract market,
derivatives transaction execution
facility, or'';
(ii) by striking ``licensed or
designated'' each place it appears and
inserting ``licensed, designated, or
registered''; and
(iii) by striking ``contract
market, or'' and inserting ``contract
market or derivatives transaction
execution facility, or''.
(5) Section 4b(a) of the Commodity Exchange Act (7
U.S.C. 6b(a)) is amended by striking ``contract
market'' each place it appears and inserting
``registered entity''.
(6) Sections 4c(g), 4d, 4e, and 4f of the Commodity
Exchange Act (7 U.S.C. 6c(g), 6d, 6e, 6f) are amended
by inserting ``or derivatives transaction execution
facility'' after ``contract market'' each place it
appears.
(7) Section 4g of the Commodity Exchange Act (7
U.S.C. 6g) is amended--
(A) in subsection (b), by striking
``clearinghouse and contract market'' and
inserting ``registered entity''; and
(B) in subsection (f), by striking
``clearinghouses, contract markets, and
exchanges'' and inserting ``registered
entities''.
(8) Section 4h of the Commodity Exchange Act (7
U.S.C. 6h) is amended by striking ``contract market''
each place it appears and inserting ``registered
entity''.
(9) Section 4i of the Commodity Exchange Act (7
U.S.C. 6i) is amended in the first sentence by
inserting ``or derivatives transaction execution
facility'' after ``contract market''.
(10) Section 4l of the Commodity Exchange Act (7
U.S.C. 6l) is amended by inserting ``or derivatives
transaction execution facilities'' after ``contract
markets'' each place it appears.
(11) Section 4p of the Commodity Exchange Act (7
U.S.C. 6p) is amended--
(A) in the third sentence of subsection
(a), by striking ``Act or contract markets''
and inserting ``Act, contract markets, or
derivatives transaction execution facilities'';
and
(B) in subsection (b), by inserting
``derivatives transaction execution facility,''
after ``contract market,''.
(12) Section 6 of the Commodity Exchange Act (7
U.S.C. 8, 9, 9a, 9b, 13b, 15) is amended--
(A) in subsection (a)--
(i) in the first sentence--
(I) by striking ``board of
trade desiring to be designated
a `contract market' shall make
application to the Commission
for such designation'' and
inserting ``person desiring to
be designated or registered as
a contract market or
derivatives transaction
execution facility shall make
application to the Commission
for the designation or
registration'';
(II) by striking ``above
conditions'' and inserting
``conditions set forth in this
Act''; and
(III) by striking ``above
requirements'' and inserting
``the requirements of this
Act'';
(ii) in the second sentence, by
striking ``designation as a contract
market within one year'' and inserting
``designation or registration as a
contract market or derivatives
transaction execution facility within
180 days'';
(iii) in the third sentence--
(I) by striking ``board of
trade'' and inserting
``person''; and
(II) by striking ``one-year
period'' and inserting ``180-
day period''; and
(iv) in the last sentence, by
striking ``designate as a `contract
market' any board of trade that has
made application therefor, such board
of trade'' and inserting ``designate or
register as a contract market or
derivatives transaction execution
facility any person that has made
application therefor, the person'';
(B) in subsection (b)--
(i) in the first sentence--
(I) by striking
``designation of any board of
trade as a `contract market'
upon'' and inserting
``designation or registration
of any contract market or
derivatives transaction
execution facility on'';
(II) by striking ``board of
trade'' each place it appears
and inserting ``contract market
or derivatives transaction
execution facility''; and
(III) by striking
``designation as set forth in
section 5 of this Act'' and
inserting ``designation or
registration as set forth in
sections 5 through 5b or
section 5f'';
(ii) in the second sentence--
(I) by striking ``board of
trade'' the first place it
appears and inserting
``contract market or
derivatives transaction
execution facility''; and
(II) by striking ``board of
trade'' the second and third
places it appears and inserting
``person''; and
(iii) in the last sentence, by
striking ``board of trade'' each place
it appears and inserting ``person'';
(C) in subsection (c)--
(i) by striking ``contract market''
each place it appears and inserting
``registered entity'';
(ii) by striking ``contract
markets'' each place it appears and
inserting ``registered entities''; and
(iii) by striking ``trading
privileges'' each place it appears and
inserting ``privileges'';
(D) in subsection (d), by striking
``contract market'' each place it appears and
inserting ``registered entity''; and
(E) in subsection (e), by striking
``trading on all contract markets'' each place
it appears and inserting ``the privileges of
all registered entities''.
(13) Section 6a of the Commodity Exchange Act (7
U.S.C. 10a) is amended--
(A) in the first sentence of subsection
(a), by striking ``designated as a `contract
market' shall'' and inserting ``designated or
registered as a contract market or a
derivatives transaction execution facility'';
and
(B) in subsection (b), by striking
``designated as a contract market'' and
inserting ``designated or registered as a
contract market or a derivatives transaction
execution facility''.
(14) Section 6b of the Commodity Exchange Act (7
U.S.C. 13a) is amended--
(A) by striking ``contract market'' each
place it appears and inserting ``registered
entity'';
(B) in the first sentence, by striking
``designation as set forth in section 5 of this
Act'' and inserting ``designation or
registration as set forth in sections 5 through
5c''; and
(C) in the last sentence, by striking ``the
contract market's ability'' and inserting ``the
ability of the registered entity''.
(15) Section 6c(a) of the Commodity Exchange Act (7
U.S.C. 13a-1(a)) by striking ``contract market'' and
inserting ``registered entity''.
(16) Section 6d(1) of the Commodity Exchange Act (7
U.S.C. 13a-2(1)) is amended by inserting ``derivatives
transaction execution facility,'' after ``contract
market,''.
(17) Section 7 of the Commodity Exchange Act (7
U.S.C. 11) is amended--
(A) in the first sentence--
(i) by striking ``board of trade''
and inserting ``person'';
(ii) by inserting ``or registered''
after ``designated'';
(iii) by inserting ``or
registration'' after ``designation''
each place it appears; and
(iv) by striking ``contract
market'' each place it appears and
inserting ``registered entity'';
(B) in the second sentence--
(i) by striking ``designation of
such board of trade as a contract
market'' and inserting ``designation or
registration of the registered
entity''; and
(ii) by striking ``contract
markets'' and inserting ``registered
entities''; and
(C) in the last sentence--
(i) by striking ``board of trade''
and inserting ``person''; and
(ii) by striking ``designated again
a contract market'' and inserting
``designated or registered again a
registered entity''.
(18) Section 8(c) of the Commodity Exchange Act (7
U.S.C. 12(c)) is amended in the first sentence by
striking ``board of trade'' and inserting ``registered
entity''.
(19) Section 8a of the Commodity Exchange Act (7
U.S.C. 12a) is amended--
(A) by striking ``contract market'' each
place it appears and inserting ``registered
entity''; and
(B) in paragraph (2)(F), by striking
``trading privileges'' and inserting
``privileges''.
(20) Sections 8b and 8c(e) of the Commodity
Exchange Act (7 U.S.C. 12b, 12c(e)) are amended by
striking ``contract market'' each place it appears and
inserting ``registered entity''.
(21) Section 8e of the Commodity Exchange Act (7
U.S.C. 12e) is repealed.
(22) Section 9 of the Commodity Exchange Act (7
U.S.C. 13) is amended by striking ``contract market''
each place it appears and inserting ``registered
entity''.
(23) Section 14 of the Commodity Exchange Act (7
U.S.C. 18) is amended--
(A) in subsection (a)(1)(B), by striking
``contract market'' and inserting ``registered
entity''; and
(B) in subsection (f), by striking
``contract markets'' and inserting ``registered
entities''.
(24) Section 17 of the Commodity Exchange Act (7
U.S.C. 21) is amended by striking ``contract market''
each place it appears and inserting ``registered
entity''.
(25) Section 22 of the Commodity Exchange Act (7
U.S.C. 25) is amended--
(A) in subsection (a)--
(i) in paragraph (1)--
(I) by striking ``contract
market, clearing organization
of a contract market, licensed
board of trade,'' and inserting
``registered entity''; and
(II) in subparagraph
(C)(i), by striking ``contract
market'' and inserting
``registered entity'';
(ii) in paragraph (2), by striking
``sections 5a(11),'' and inserting
``sections 5(d)(13), 5b(b)(1)(E),'';
and
(iii) in paragraph (3), by striking
``contract market'' and inserting
``registered entity''; and
(B) in subsection (b)--
(i) in paragraph (1)--
(I) by striking ``contract
market or clearing organization
of a contract market'' and
inserting ``registered
entity'';
(II) by striking ``section
5a(8) and section 5a(9) of this
Act'' and inserting ``sections
5 through 5c'';
(III) by striking
``contract market, clearing
organization of a contract
market, or licensed board of
trade'' and inserting
``registered entity''; and
(IV) by striking ``contract
market or licensed board of
trade'' and inserting
``registered entity'';
(ii) in paragraph (3)--
(I) by striking ``a
contract market, clearing
organization, licensed board of
trade,'' and inserting
``registered entity''; and
(II) by striking ``contract
market, licensed board of
trade'' and inserting
``registered entity'';
(iii) in paragraph (4), by striking
``contract market, licensed board of
trade, clearing organization,'' and
inserting ``registered entity''; and
(iv) in paragraph (5), by striking
``contract market, licensed board of
trade, clearing organization,'' and
inserting ``registered entity''.
(b) Federal Deposit Insurance Corporation Improvement Act
of 1991.--Section 402(2) of the Federal Deposit Insurance
Corporation Improvement Act of 1991 (12 U.S.C. 4402(2)) is
amended by striking subparagraph (B) and inserting the
following:
``(B) that is registered as a derivatives
clearing organization under section 5b of the
Commodity Exchange Act.''.
SEC. 124. PRIVACY.
The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended
by inserting after section 5f (as added by section 252) the
following:
``SEC. 5G. PRIVACY.
``(a) Treatment as Financial Institutions.--Notwithstanding
section 509(3)(B) of the Gramm-Leach-Bliley Act, any futures
commission merchant, commodity trading advisor, commodity pool
operator, or introducing broker that is subject to the
jurisdiction of the Commission under this Act with respect to
any financial activity shall be treated as a financial
institution for purposes of title V of such Act with respect to
such financial activity.
``(b) Treatment of CFTC as Federal Functional Regulator.--
For purposes of title V of such Act, the Commission shall be
treated as a Federal functional regulator within the meaning of
section 509(2) of such Act and shall prescribe regulations
under such title within 6 months after the date of enactment of
this section.''.
SEC. 125. REPORT TO CONGRESS.
(a) The Commodity Futures Trading Commission (in this
section referred to as the ``Commission'') shall undertake and
complete a study of the Commodity Exchange Act (in this section
referred to as ``the Act'') and the Commission's rules,
regulations and orders governing the conduct of persons
required to be registered under the Act, not later than 1 year
after the date of the enactment of this Act. The study shall
identify--
(1) the core principles and interpretations of
acceptable business practices that the Commission has
adopted or intends to adopt to replace the provisions
of the Act and the Commission's rules and regulations
thereunder;
(2) the rules and regulations that the Commission
has determined must be retained and the reasons
therefor;
(3) the extent to which the Commission believes it
can effect the changes identified in paragraph (1) of
this subsection through its exemptive authority under
section 4(c) of the Act; and
(4) the regulatory functions the Commission
currently performs that can be delegated to a
registered futures association (within the meaning of
the Act) and the regulatory functions that the
Commission has determined must be retained and the
reasons therefor.
(b) In conducting the study, the Commission shall solicit
the views of the public as well as Commission registrants,
registered entities, and registered futures associations (all
within the meaning of the Act).
(c) The Commission shall transmit to the Committee on
Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate a report
of the results of its study, which shall include an analysis of
comments received.
SEC. 126. INTERNATIONAL ACTIVITIES OF THE COMMODITY FUTURES TRADING
COMMISSION.
(a) Findings.--The Congress finds that--
(1) derivatives markets serving United States
industry are increasingly global in scope;
(2) developments in data processing and
communications technologies enable users of risk
management services to analyze and compare those
services on a worldwide basis;
(3) financial services regulatory policy must be
flexible to account for rapidly changing derivatives
industry business practices;
(4) regulatory impediments to the operation of
global business interests can compromise the
competitiveness of United States businesses;
(5) events that disrupt financial markets and
economies are often global in scope, require rapid
regulatory response, and coordinated regulatory effort
across international jurisdictions;
(6) through its membership in the International
Organisation of Securities Commissions, the Commodity
Futures Trading Commission has promoted beneficial
communication among market regulators and international
regulatory cooperation; and
(7) the Commodity Futures Trading Commission and
other United States financial regulators and self-
regulatory organizations should continue to foster
productive and cooperative working relationships with
their counterparts in foreign jurisdictions.
(b) Sense of the Congress.--It is the sense of the Congress
that, consistent with its responsibilities under the Commodity
Exchange Act, the Commodity Futures Trading Commission should,
as part of its international activities, continue to coordinate
with foreign regulatory authorities, to participate in
international regulatory organizations and forums, and to
provide technical assistance to foreign government authorities,
in order to encourage--
(1) the facilitation of cross-border transactions
through the removal or lessening of any unnecessary
legal or practical obstacles;
(2) the development of internationally accepted
regulatory standards of best practice;
(3) the enhancement of international supervisory
cooperation and emergency procedures;
(4) the strengthening of international cooperation
for customer and market protection; and
(5) improvements in the quality and timeliness of
international information sharing.
TITLE II--COORDINATED REGULATION OF SECURITY FUTURES PRODUCTS
Subtitle A--Securities Law Amendments
SEC. 201. DEFINITIONS UNDER THE SECURITIES EXCHANGE ACT OF 1934.
Section 3(a) of the Securities Exchange Act of 1934 (15
U.S.C. 78c(a)) is amended--
(1) in paragraph (10), by inserting ``security
future,'' after ``treasury stock,'';
(2) by striking paragraph (11) and inserting the
following:
``(11) The term `equity security' means any stock
or similar security; or any security future on any such
security; or any security convertible, with or without
consideration, into such a security, or carrying any
warrant or right to subscribe to or purchase such a
security; or any such warrant or right; or any other
security which the Commission shall deem to be of
similar nature and consider necessary or appropriate,
by such rules and regulations as it may prescribe in
the public interest or for the protection of investors,
to treat as an equity security.'';
(3) in paragraph (13), by adding at the end the
following: ``For security futures products, such term
includes any contract, agreement, or transaction for
future delivery.'';
(4) in paragraph (14), by adding at the end the
following: ``For security futures products, such term
includes any contract, agreement, or transaction for
future delivery.''; and
(5) by adding at the end the following:
``(55)(A) The term `security future' means a
contract of sale for future delivery of a single
security or of a narrow-based security index, including
any interest therein or based on the value thereof,
except an exempted security under section 3(a)(12) of
the Securities Exchange Act of 1934 as in effect on the
date of enactment of the Futures Trading Act of 1982
(other than any municipal security as defined in
section 3(a)(29) as in effect on the date of enactment
of the Futures Trading Act of 1982). The term `security
future' does not include any agreement, contract, or
transaction excluded from the Commodity Exchange Act
under section 2(c), 2(d), 2(f) or 2(g) of the Commodity
Exchange Act (as in effect on the date of enactment of
the Commodity Futures Modernization Act of 2000) or
title IV of the Commodity Futures Modernization Act of
2000.
``(B) The term `narrow-based security index' means
an index--
``(i) that has 9 or fewer component
securities;
``(ii) in which a component security
comprises more than 30 percent of the index's
weighting;
``(iii) in which the 5 highest weighted
component securities in the aggregate comprise
more than 60 percent of the index's weighting;
or
``(iv) in which the lowest weighted
component securities comprising, in the
aggregate, 25 percent of the index's weighting
have an aggregate dollar value of average daily
trading volume of less than $50,000,000 (or in
the case of an index with 15 or more component
securities, $30,000,000), except that if there
are two or more securities with equal weighting
that could be included in the calculation of
the lowest weighted component securities
comprising, in the aggregate, 25 percent of the
index's weighting, such securities shall be
ranked from lowest to highest dollar value of
average daily trading volume and shall be
included in the calculation based on their
ranking starting with the lowest ranked
security.
``(C) Notwithstanding subparagraph (B), an index is
not a narrow-based security index if--
``(i)(I) it has at least 9
component securities;
``(II) no component security
comprises more than 30 percent of the
index's weighting; and
``(III) each component security
is--
``(aa) registered pursuant
to section 12 of the Securities
Exchange Act of 1934;
``(bb) 1 of 750 securities
with the largest market
capitalization; and
``(cc) 1 of 675 securities
with the largest dollar value
of average daily trading
volume;
``(ii) a board of trade was
designated as a contract market by the
Commodity Futures Trading Commission
with respect to a contract of sale for
future delivery on the index, before
the date of enactment of the Commodity
Futures Modernization Act of 2000;
``(iii)(I) a contract of sale for
future delivery on the index traded on
a designated contract market or
registered derivatives transaction
execution facility for at least 30 days
as a contract of sale for future
delivery on an index that was not a
narrow-based security index; and
``(II) it has been a narrow-based
security index for no more than 45
business days over 3 consecutive
calendar months;
``(iv) a contract of sale for
future delivery on the index is traded
on or subject to the rules of a foreign
board of trade and meets such
requirements as are jointly established
by rule or regulation by the Commission
and the Commodity Futures Trading
Commission;
``(v) no more than 18 months have
passed since the date of enactment of
the Commodity Futures Modernization Act
of 2000 and--
``(I) it is traded on or
subject to the rules of a
foreign board of trade;
``(II) the offer and sale
in the United States of a
contract of sale for future
delivery on the index was
authorized before the date of
the enactment of the Commodity
Futures Modernization Act of
2000; and
``(III) the conditions of
such authorization continue to
be met; or
``(vi) a contract of sale for
future delivery on the index is traded
on or subject to the rules of a board
of trade and meets such requirements as
are jointly established by rule,
regulation, or order by the Commission
and the Commodity Futures Trading
Commission.
``(D) Within 1 year after the enactment of the
Commodity Futures Modernization Act of 2000, the
Commission and the Commodity Futures Trading Commission
jointly shall adopt rules or regulations that set forth
the requirements under clause (iv) of subparagraph (C).
``(E) An index that is a narrow-based security
index solely because it was a narrow-based security
index for more than 45 business days over 3 consecutive
calendar months pursuant to clause (iii) of
subparagraph (C) shall not be a narrow-based security
index for the 3 following calendar months.
``(F) For purposes of subparagraphs (B) and (C) of
this paragraph--
``(i) the dollar value of average daily
trading volume and the market capitalization
shall be calculated as of the preceding 6 full
calendar months; and
``(ii) the Commission and the Commodity
Futures Trading Commission shall, by rule or
regulation, jointly specify the method to be
used to determine market capitalization and
dollar value of average daily trading volume.
``(56) The term `security futures product' means a
security future or any put, call, straddle, option, or
privilege on any security future.
``(57)(A) The term `margin', when used with respect
to a security futures product, means the amount, type,
and form of collateral required to secure any extension
or maintenance of credit, or the amount, type, and form
of collateral required as a performance bond related to
the purchase, sale, or carrying of a security futures
product.
``(B) The terms `margin level' and `level of
margin', when used with respect to a security futures
product, mean the amount of margin required to secure
any extension or maintenance of credit, or the amount
of margin required as a performance bond related to the
purchase, sale, or carrying of a security futures
product.
``(C) The terms `higher margin level' and `higher
level of margin', when used with respect to a security
futures product, mean a margin level established by a
national securities exchange registered pursuant to
section 6(g) that is higher than the minimum amount
established and in effect pursuant to section
7(c)(2)(B).''.
SEC. 202. REGULATORY RELIEF FOR MARKETS TRADING SECURITY FUTURES
PRODUCTS.
(a) Expedited Registration and Exemption.--Section 6 of the
Securities Exchange Act of 1934 (15 U.S.C. 78f) is amended by
adding at the end the following:
``(g) Notice Registration of Security Futures Product
Exchanges.--
``(1) Registration required.--An exchange that
lists or trades security futures products may register
as a national securities exchange solely for the
purposes of trading security futures products if--
``(A) the exchange is a board of trade, as
that term is defined by the Commodity Exchange
Act (7 U.S.C. 1a(2)), that--
``(i) has been designated a
contract market by the Commodity
Futures Trading Commission and such
designation is not suspended by order
of the Commodity Futures Trading
Commission; or
``(ii) is registered as a
derivative transaction execution
facility under section 5a of the
Commodity Exchange Act and such
registration is not suspended by the
Commodity Futures Trading Commission;
and
``(B) such exchange does not serve as a
market place for transactions in securities
other than--
``(i) security futures products; or
``(ii) futures on exempted
securities or groups or indexes of
securities or options thereon that have
been authorized under section
2(a)(1)(C) of the Commodity Exchange
Act.
``(2) Registration by notice filing.--
``(A) Form and content.--An exchange
required to register only because such exchange
lists or trades security futures products may
register for purposes of this section by filing
with the Commission a written notice in such
form as the Commission, by rule, may prescribe
containing the rules of the exchange and such
other information and documents concerning such
exchange, comparable to the information and
documents required for national securities
exchanges under section 6(a), as the
Commission, by rule, may prescribe as necessary
or appropriate in the public interest or for
the protection of investors. If such exchange
has filed documents with the Commodity Futures
Trading Commission, to the extent that such
documents contain information satisfying the
Commission's informational requirements, copies
of such documents may be filed with the
Commission in lieu of the required written
notice.
``(B) Immediate effectiveness.--Such
registration shall be effective
contemporaneously with the submission of
notice, in written or electronic form, to the
Commission, except that such registration shall
not be effective if such registration would be
subject to suspension or revocation.
``(C) Termination.--Such registration shall
be terminated immediately if any of the
conditions for registration set forth in this
subsection are no longer satisfied.
``(3) Public availability.--The Commission shall
promptly publish in the Federal Register an
acknowledgment of receipt of all notices the Commission
receives under this subsection and shall make all such
notices available to the public.
``(4) Exemption of exchanges from specified
provisions.--
``(A) Transaction exemptions.--An exchange
that is registered under paragraph (1) of this
subsection shall be exempt from, and shall not
be required to enforce compliance by its
members with, and its members shall not, solely
with respect to those transactions effected on
such exchange in security futures products, be
required to comply with, the following
provisions of this title and the rules
thereunder:
``(i) Subsections (b)(2), (b)(3),
(b)(4), (b)(7), (b)(9), (c), (d), and
(e) of this section.
``(ii) Section 8.
``(iii) Section 11.
``(iv) Subsections (d), (f), and
(k) of section 17.
``(v) Subsections (a), (f), and (h)
of section 19.
``(B) Rule change exemptions.--An exchange
that registered under paragraph (1) of this
subsection shall also be exempt from submitting
proposed rule changes pursuant to section 19(b)
of this title, except that--
``(i) such exchange shall file
proposed rule changes related to higher
margin levels, fraud or manipulation,
recordkeeping, reporting, listing
standards, or decimal pricing for
security futures products, sales
practices for security futures products
for persons who effect transactions in
security futures products, or rules
effectuating such exchange's obligation
to enforce the securities laws pursuant
to section 19(b)(7);
``(ii) such exchange shall file
pursuant to sections 19(b)(1) and
19(b)(2) proposed rule changes related
to margin, except for changes resulting
in higher margin levels; and
``(iii) such exchange shall file
pursuant to section 19(b)(1) proposed
rule changes that have been abrogated
by the Commission pursuant to section
19(b)(7)(C).
``(5) Trading in security futures products.--
``(A) In general.--Subject to subparagraph
(B), it shall be unlawful for any person to
execute or trade a security futures product
until the later of--
``(i) 1 year after the date of
enactment of the Commodity Futures
Modernization Act of 2000; or
``(ii) such date that a futures
association registered under section 17
of the Commodity Exchange Act has met
the requirements set forth in section
15A(k)(2) of this title.
``(B) Principal-to-principal
transactions.--Notwithstanding subparagraph
(A), a person may execute or trade a security
futures product transaction if--
``(i) the transaction is entered
into--
``(I) on a principal-to-
principal basis between parties
trading for their own accounts
or as described in section
1a(12)(B)(ii) of the Commodity
Exchange Act; and
``(II) only between
eligible contract participants
(as defined in subparagraphs
(A), (B)(ii), and (C) of such
section 1a(12)) at the time at
which the persons enter into
the agreement, contract, or
transaction; and
``(ii) the transaction is entered
into on or after the later of--
``(I) 8 months after the
date of enactment of the
Commodity Futures Modernization
Act of 2000; or
``(II) such date that a
futures association registered
under section 17 of the
Commodity Exchange Act has met
the requirements set forth in
section 15A(k)(2) of this
title.''.
(b) Commission Review of Proposed Rule Changes.--
(1) Expedited review.--Section 19(b) of the
Securities Exchange Act of 1934 (15 U.S.C. 78s(b)) is
amended by adding at the end the following:
``(7) Security futures product rule changes.--
``(A) Filing required.--A self-regulatory
organization that is an exchange registered
with the Commission pursuant to section 6(g) of
this title or that is a national securities
association registered pursuant to section
15A(k) of this title shall file with the
Commission, in accordance with such rules as
the Commission may prescribe, copies of any
proposed rule change or any proposed change in,
addition to, or deletion from the rules of such
self-regulatory organization (hereinafter in
this paragraph collectively referred to as a
`proposed rule change') that relates to higher
margin levels, fraud or manipulation,
recordkeeping, reporting, listing standards, or
decimal pricing for security futures products,
sales practices for security futures products
for persons who effect transactions in security
futures products, or rules effectuating such
self-regulatory organization's obligation to
enforce the securities laws. Such proposed rule
change shall be accompanied by a concise
general statement of the basis and purpose of
such proposed rule change. The Commission
shall, upon the filing of any proposed rule
change, promptly publish notice thereof
together with the terms of substance of the
proposed rule change or a description of the
subjects and issues involved. The Commission
shall give interested persons an opportunity to
submit data, views, and arguments concerning
such proposed rule change.
``(B) Filing with cftc.--A proposed rule
change filed with the Commission pursuant to
subparagraph (A) shall be filed concurrently
with the Commodity Futures Trading Commission.
Such proposed rule change may take effect upon
filing of a written certification with the
Commodity Futures Trading Commission under
section 5c(c) of the Commodity Exchange Act,
upon a determination by the Commodity Futures
Trading Commission that review of the proposed
rule change is not necessary, or upon approval
of the proposed rule change by the Commodity
Futures Trading Commission.
``(C) Abrogation of rule changes.--Any
proposed rule change of a self-regulatory
organization that has taken effect pursuant to
subparagraph (B) may be enforced by such self-
regulatory organization to the extent such rule
is not inconsistent with the provisions of this
title, the rules and regulations thereunder,
and applicable Federal law. At any time within
60 days of the date of the filing of a written
certification with the Commodity Futures
Trading Commission under section 5c(c) of the
Commodity Exchange Act, the date the Commodity
Futures Trading Commission determines that
review of such proposed rule change is not
necessary, or the date the Commodity Futures
Trading Commission approves such proposed rule
change, the Commission, after consultation with
the Commodity Futures Trading Commission, may
summarily abrogate the proposed rule change and
require that the proposed rule change be
refiled in accordance with the provisions of
paragraph (1), if it appears to the Commission
that such proposed rule change unduly burdens
competition or efficiency, conflicts with the
securities laws, or is inconsistent with the
public interest and the protection of
investors. Commission action pursuant to the
preceding sentence shall not affect the
validity or force of the rule change during the
period it was in effect and shall not be
reviewable under section 25 of this title nor
deemed to be a final agency action for purposes
of section 704 of title 5, United States Code.
``(D) Review of resubmitted abrogated
rules.--
``(i) Proceedings.--Within 35 days
of the date of publication of notice of
the filing of a proposed rule change
that is abrogated in accordance with
subparagraph (C) and refiled in
accordance with paragraph (1), or
within such longer period as the
Commission may designate up to 90 days
after such date if the Commission finds
such longer period to be appropriate
and publishes its reasons for so
finding or as to which the self-
regulatory organization consents, the
Commission shall--
``(I) by order approve such
proposed rule change; or
``(II) after consultation
with the Commodity Futures
Trading Commission, institute
proceedings to determine
whether the proposed rule
change should be disapproved.
Proceedings under subclause
(II) shall include notice of
the grounds for disapproval
under consideration and
opportunity for hearing and be
concluded within 180 days after
the date of publication of
notice of the filing of the
proposed rule change. At the
conclusion of such proceedings,
the Commission, by order, shall
approve or disapprove such
proposed rule change. The
Commission may extend the time
for conclusion of such
proceedings for up to 60 days
if the Commission finds good
cause for such extension and
publishes its reasons for so
finding or for such longer
period as to which the self-
regulatory organization
consents.
``(ii) Grounds for approval.--The
Commission shall approve a proposed
rule change of a self-regulatory
organization under this subparagraph if
the Commission finds that such proposed
rule change does not unduly burden
competition or efficiency, does not
conflict with the securities laws, and
is not inconsistent with the public
interest or the protection of
investors. The Commission shall
disapprove such a proposed rule change
of a self-regulatory organization if it
does not make such finding. The
Commission shall not approve any
proposed rule change prior to the 30th
day after the date of publication of
notice of the filing thereof, unless
the Commission finds good cause for so
doing and publishes its reasons for so
finding.''.
(2) Decimal pricing provisions.--Section 19(b) of
the Securities Exchange Act of 1934 (15 U.S.C. 78s(b))
is amended by inserting after paragraph (7), as added
by paragraph (1), the following:
``(8) Decimal pricing.--Not later than 9 months
after the date on which trading in any security futures
product commences under this title, all self-regulatory
organizations listing or trading security futures
products shall file proposed rule changes necessary to
implement decimal pricing of security futures products.
The Commission may not require such rules to contain
equal minimum increments in such decimal pricing.''.
(3) Consultation provisions.--Section 19(b) of the
Securities Exchange Act of 1934 (15 U.S.C. 78s(b)) is
amended by inserting after paragraph (8), as added by
paragraph (2), the following:
``(9) Consultation with cftc.--
``(A) Consultation required.--The
Commission shall consult with and consider the
views of the Commodity Futures Trading
Commission prior to approving or disapproving a
proposed rule change filed by a national
securities association registered pursuant to
section 15A(a) or a national securities
exchange subject to the provisions of
subsection (a) that primarily concerns conduct
related to transactions in security futures
products, except where the Commission
determines that an emergency exists requiring
expeditious or summary action and publishes its
reasons therefor.
``(B) Responses to cftc comments and
findings.--If the Commodity Futures Trading
Commission comments in writing to the
Commission on a proposed rule that has been
published for comment, the Commission shall
respond in writing to such written comment
before approving or disapproving the proposed
rule. If the Commodity Futures Trading
Commission determines, and notifies the
Commission, that such rule, if implemented or
as applied, would--
``(i) adversely affect the
liquidity or efficiency of the market
for security futures products; or
``(ii) impose any burden on
competition not necessary or
appropriate in furtherance of the
purposes of this section,
the Commission shall, prior to approving or
disapproving the proposed rule, find that such
rule is necessary and appropriate in
furtherance of the purposes of this section
notwithstanding the Commodity Futures Trading
Commission's determination.''.
(c) Review of Disciplinary Proceedings.--Section 19(d) of
the Securities Exchange Act of 1934 (15 U.S.C. 78s(d)) is
amended by adding at the end the following:
``(3) The provisions of this subsection shall apply to an
exchange registered pursuant to section 6(g) of this title or a
national securities association registered pursuant to section
15A(k) of this title only to the extent that such exchange or
association imposes any final disciplinary sanction for--
``(A) a violation of the Federal securities laws or
the rules and regulations thereunder; or
``(B) a violation of a rule of such exchange or
association, as to which a proposed change would be
required to be filed under section 19 of this title,
except that, to the extent that the exchange or
association rule violation relates to any account,
agreement, contract, or transaction, this subsection
shall apply only to the extent such violation involves
a security futures product.''.
SEC. 203. REGULATORY RELIEF FOR INTERMEDIARIES TRADING SECURITY FUTURES
PRODUCTS.
(a) Expedited Registration and Exemptions.--
(1) Amendment.--Section 15(b) of the Securities
Exchange Act of 1934 (15 U.S.C. 78o(b)) is amended by
adding at the end the following:
``(11) Broker/dealer registration with respect to
transactions in security futures products.--
``(A) Notice registration.--
``(i) Contents of notice.--
Notwithstanding paragraphs (1) and (2),
a broker or dealer required to register
only because it effects transactions in
security futures products on an
exchange registered pursuant to section
6(g) may register for purposes of this
section by filing with the Commission a
written notice in such form and
containing such information concerning
such broker or dealer and any persons
associated with such broker or dealer
as the Commission, by rule, may
prescribe as necessary or appropriate
in the public interest or for the
protection of investors. A broker or
dealer may not register under this
paragraph unless that broker or dealer
is a member of a national securities
association registered under section
15A(k).
``(ii) Immediate effectiveness.--
Such registration shall be effective
contemporaneously with the submission
of notice, in written or electronic
form, to the Commission, except that
such registration shall not be
effective if the registration would be
subject to suspension or revocation
under paragraph (4).
``(iii) Suspension.--Such
registration shall be suspended
immediately if a national securities
association registered pursuant to
section 15A(k) of this title suspends
the membership of that broker or
dealer.
``(iv) Termination.--Such
registration shall be terminated
immediately if any of the above stated
conditions for registration set forth
in this paragraph are no longer
satisfied.
``(B) Exemptions for registered brokers and
dealers.--A broker or dealer registered
pursuant to the requirements of subparagraph
(A) shall be exempt from the following
provisions of this title and the rules
thereunder with respect to transactions in
security futures products:
``(i) Section 8.
``(ii) Section 11.
``(iii) Subsections (c)(3) and
(c)(5) of this section.
``(iv) Section 15B.
``(v) Section 15C.
``(vi) Subsections (d), (e), (f),
(g), (h), and (i) of section 17.''.
(2) Conforming amendment.--Section 28(e) of the
Securities Exchange Act of 1934 (15 U.S.C. 78bb(e)) is
amended by adding at the end the following:
``(4) The provisions of this subsection shall not apply
with regard to securities that are security futures
products.''.
(b) Floor Brokers and Floor Traders.--Section 15(b) of the
Securities Exchange Act of 1934 (15 U.S.C. 78o(b)) is amended
by inserting after paragraph (11), as added by subsection (a),
the following:
``(12) Exemption for security futures product
exchange members.--
``(A) Registration exemption.--A natural
person shall be exempt from the registration
requirements of this section if such person--
``(i) is a member of a designated
contract market registered with the
Commission as an exchange pursuant to
section 6(g);
``(ii) effects transactions only in
securities on the exchange of which
such person is a member; and
``(iii) does not directly accept or
solicit orders from public customers or
provide advice to public customers in
connection with the trading of security
futures products.
``(B) Other exemptions.--A natural person
exempt from registration pursuant to
subparagraph (A) shall also be exempt from the
following provisions of this title and the
rules thereunder:
``(i) Section 8.
``(ii) Section 11.
``(iii) Subsections (c)(3), (c)(5),
and (e) of this section.
``(iv) Section 15B.
``(v) Section 15C.
``(vi) Subsections (d), (e), (f),
(g), (h), and (i) of section 17.''.
(c) Limited Purpose National Securities Association.--
Section 15A of the Securities Exchange Act of 1934 (15 U.S.C.
78o-3) is amended by adding at the end the following:
``(k) Limited Purpose National Securities Association.--
``(1) Regulation of members with respect to
security futures products.--A futures association
registered under section 17 of the Commodity Exchange
Act shall be a registered national securities
association for the limited purpose of regulating the
activities of members who are registered as brokers or
dealers in security futures products pursuant to
section 15(b)(11).
``(2) Requirements for registration.--Such a
securities association shall--
``(A) be so organized and have the capacity
to carry out the purposes of the securities
laws applicable to security futures products
and to comply, and (subject to any rule or
order of the Commission pursuant to section
19(g)(2)) to enforce compliance by its members
and persons associated with its members, with
the provisions of the securities laws
applicable to security futures products, the
rules and regulations thereunder, and its
rules;
``(B) have rules that--
``(i) are designed to prevent
fraudulent and manipulative acts and
practices, to promote just and
equitable principles of trade, and, in
general, to protect investors and the
public interest, including rules
governing sales practices and the
advertising of security futures
products reasonably comparable to those
of other national securities
associations registered pursuant to
subsection (a) that are applicable to
security futures products; and
``(ii) are not designed to regulate
by virtue of any authority conferred by
this title matters not related to the
purposes of this title or the
administration of the association;
``(C) have rules that provide that (subject
to any rule or order of the Commission pursuant
to section 19(g)(2)) its members and persons
associated with its members shall be
appropriately disciplined for violation of any
provision of the securities laws applicable to
security futures products, the rules or
regulations thereunder, or the rules of the
association, by expulsion, suspension,
limitation of activities, functions, and
operations, fine, censure, being suspended or
barred from being associated with a member, or
any other fitting sanction; and
``(D) have rules that ensure that members
and natural persons associated with members
meet such standards of training, experience,
and competence necessary to effect transactions
in security futures products and are tested for
their knowledge of securities and security
futures products.
``(3) Exemption from rule change submission.--Such
a securities association shall be exempt from
submitting proposed rule changes pursuant to section
19(b) of this title, except that--
``(A) the association shall file proposed
rule changes related to higher margin levels,
fraud or manipulation, recordkeeping,
reporting, listing standards, or decimal
pricing for security futures products, sales
practices for, advertising of, or standards of
training, experience, competence, or other
qualifications for security futures products
for persons who effect transactions in security
futures products, or rules effectuating the
association's obligation to enforce the
securities laws pursuant to section 19(b)(7);
``(B) the association shall file pursuant
to sections 19(b)(1) and 19(b)(2) proposed rule
changes related to margin, except for changes
resulting in higher margin levels; and
``(C) the association shall file pursuant
to section 19(b)(1) proposed rule changes that
have been abrogated by the Commission pursuant
to section 19(b)(7)(C).
``(4) Other exemptions.--Such a securities
association shall be exempt from and shall not be
required to enforce compliance by its members, and its
members shall not, solely with respect to their
transactions effected in security futures products, be
required to comply, with the following provisions of
this title and the rules thereunder:
``(A) Section 8.
``(B) Subsections (b)(1), (b)(3), (b)(4),
(b)(5), (b)(8), (b)(10), (b)(11), (b)(12),
(b)(13), (c), (d), (e), (f), (g), (h), and (i)
of this section.
``(C) Subsections (d), (f), and (k) of
section 17.
``(D) Subsections (a), (f), and (h) of
section 19.''.
(d) Exemption Under the Securities Investor Protection Act
of 1970.--
(1) Section 16(14) of the Securities Investor
Protection Act of 1970 (15 U.S.C. 78lll(14)) is amended
by inserting ``or any security future as that term is
defined in section 3(a)(55)(A) of the Securities
Exchange Act of 1934,'' after ``certificate of deposit
for a security,''.
(2) Section 3(a)(2)(A) of the Securities Investor
Protection Act of 1970 (15 U.S.C. 78ccc(a)(2)(A)) is
amended--
(A) in clause (i), by striking ``and''
after the semicolon;
(B) in clause (ii), by striking the period
and inserting ``; and''; and
(C) by adding at the end the following:
``(iii) persons who are registered
as a broker or dealer pursuant to
section 15(b)(11)(A) of the Securities
Exchange Act of 1934.''.
SEC. 204. SPECIAL PROVISIONS FOR INTERAGENCY COOPERATION.
Section 17(b) of the Securities Exchange Act of 1934 (15
U.S.C. 78q(b)) is amended--
(1) by striking ``(b) All'' and inserting the
following:
``(b) Records Subject to Examination.--
``(1) Procedures for cooperation with other
agencies.--All'';
(2) by striking ``prior to conducting any such
examination of a registered clearing'' and inserting
the following: ``prior to conducting any such
examination of a--
``(A) registered clearing'';
(3) by redesignating the last sentence as paragraph
(4)(C);
(4) by striking the period at the end of the first
sentence and inserting the following: ``; or
``(B) broker or dealer registered pursuant
to section 15(b)(11), exchange registered
pursuant to section 6(g), or national
securities association registered pursuant to
section 15A(k) gives notice to the Commodity
Futures Trading Commission of such proposed
examination and consults with the Commodity
Futures Trading Commission concerning the
feasibility and desirability of coordinating
such examination with examinations conducted by
the Commodity Futures Trading Commission in
order to avoid unnecessary regulatory
duplication or undue regulatory burdens for
such broker or dealer or exchange.'';
(5) by adding at the end the following new
paragraphs:
``(2) Furnishing data and reports to cftc.--The
Commission shall notify the Commodity Futures Trading
Commission of any examination conducted of any broker
or dealer registered pursuant to section 15(b)(11),
exchange registered pursuant to section 6(g), or
national securities association registered pursuant to
section 15A(k) and, upon request, furnish to the
Commodity Futures Trading Commission any examination
report and data supplied to, or prepared by, the
Commission in connection with such examination.
``(3) Use of cftc reports.--Prior to conducting an
examination under paragraph (1), the Commission shall
use the reports of examinations, if the information
available therein is sufficient for the purposes of the
examination, of--
``(A) any broker or dealer registered
pursuant to section 15(b)(11);
``(B) exchange registered pursuant to
section 6(g); or
``(C) national securities association
registered pursuant to section 15A(k);
that is made by the Commodity Futures Trading
Commission, a national securities association
registered pursuant to section 15A(k), or an exchange
registered pursuant to section 6(g).
``(4) Rules of construction.--
``(A) Notwithstanding any other provision
of this subsection, the records of a broker or
dealer registered pursuant to section
15(b)(11), an exchange registered pursuant to
section 6(g), or a national securities
association registered pursuant to section
15A(k) described in this subparagraph shall not
be subject to routine periodic examinations by
the Commission.
``(B) Any recordkeeping rules adopted under
this subsection for a broker or dealer
registered pursuant to section 15(b)(11), an
exchange registered pursuant to section 6(g),
or a national securities association registered
pursuant to section 15A(k) shall be limited to
records with respect to persons, accounts,
agreements, contracts, and transactions
involving security futures products.''; and
(6) in paragraph (4)(C) (as redesignated by
paragraph (3) of this section), by striking ``Nothing
in the proviso to the preceding sentence'' and
inserting ``Nothing in the proviso in paragraph (1)''.
SEC. 205. MAINTENANCE OF MARKET INTEGRITY FOR SECURITY FUTURES
PRODUCTS.
(a) Addition of Security Futures Products to Option-
Specific Enforcement Provisions.--
(1) Prohibition against manipulation.--Section 9(b)
of the Securities Exchange Act of 1934 (15 U.S.C.
78i(b)) is amended--
(A) in paragraph (1)--
(i) by inserting ``(A)'' after
``acquires''; and
(ii) by striking ``; or'' and
inserting ``; or (B) any security
futures product on the security; or'';
(B) in paragraph (2)--
(i) by inserting ``(A)'' after
``interest in any''; and
(ii) by striking ``; or'' and
inserting ``; or (B) such security
futures product; or''; and
(C) in paragraph (3)--
(i) by inserting ``(A)'' after
``interest in any''; and
(ii) by inserting ``; or (B) such
security futures product'' after
``privilege''.
(2) Manipulation in options and other derivative
products.--Section 9(g) of the Securities Exchange Act
of 1934 (15 U.S.C. 78i(g)) is amended--
(A) by inserting ``(1)'' after ``(g)'';
(B) by inserting ``other than a security
futures product'' after ``future delivery'';
and
(C) by adding at the end following:
``(2) Notwithstanding the Commodity Exchange Act, the
Commission shall have the authority to regulate the trading of
any security futures product to the extent provided in the
securities laws.''.
(3) Liability of controlling persons and persons
who aid and abet violations.--Section 20(d) of the
Securities Exchange Act of 1934 (15 U.S.C. 78t(d)) is
amended by striking ``or privilege'' and inserting ``,
privilege, or security futures product''.
(4) Liability to contemporaneous traders for
insider trading.--Section 21A(a)(1) of the Securities
Exchange Act of 1934 (15 U.S.C. 78u-1(a)(1)) is amended
by striking ``standardized options, the Commission--''
and inserting ``standardized options or security
futures products, the Commission--''.
(5) Enforcement consultation.--Section 21 of the
Securities Exchange Act of 1934 (15 U.S.C. 78u) is
amended by adding at the end the following:
``(i) Information to CFTC.--The Commission shall provide
the Commodity Futures Trading Commission with notice of the
commencement of any proceeding and a copy of any order entered
by the Commission against any broker or dealer registered
pursuant to section 15(b)(11), any exchange registered pursuant
to section 6(g), or any national securities association
registered pursuant to section 15A(k).''.
SEC. 206. SPECIAL PROVISIONS FOR THE TRADING OF SECURITY FUTURES
PRODUCTS.
(a) Listing Standards and Conditions for Trading.--Section
6 of the Securities Exchange Act of 1934 (15 U.S.C. 78f) is
amended by inserting after subsection (g), as added by section
202, the following:
``(h) Trading in Security Futures Products.--
``(1) Trading on exchange or association
required.--It shall be unlawful for any person to
effect transactions in security futures products that
are not listed on a national securities exchange or a
national securities association registered pursuant to
section 15A(a).
``(2) Listing standards required.--Except as
otherwise provided in paragraph (7), a national
securities exchange or a national securities
association registered pursuant to section 15A(a) may
trade only security futures products that (A) conform
with listing standards that such exchange or
association files with the Commission under section
19(b) and (B) meet the criteria specified in section
2(a)(1)(D)(i) of the Commodity Exchange Act.
``(3) Requirements for listing standards and
conditions for trading.--Such listing standards shall--
``(A) except as otherwise provided in a
rule, regulation, or order issued pursuant to
paragraph (4), require that any security
underlying the security future, including each
component security of a narrow-based security
index, be registered pursuant to section 12 of
this title;
``(B) require that if the security futures
product is not cash settled, the market on
which the security futures product is traded
have arrangements in place with a registered
clearing agency for the payment and delivery of
the securities underlying the security futures
product;
``(C) be no less restrictive than
comparable listing standards for options traded
on a national securities exchange or national
securities association registered pursuant to
section 15A(a) of this title;
``(D) except as otherwise provided in a
rule, regulation, or order issued pursuant to
paragraph (4), require that the security future
be based upon common stock and such other
equity securities as the Commission and the
Commodity Futures Trading Commission jointly
determine appropriate;
``(E) require that the security futures
product is cleared by a clearing agency that
has in place provisions for linked and
coordinated clearing with other clearing
agencies that clear security futures products,
which permits the security futures product to
be purchased on one market and offset on
another market that trades such product;
``(F) require that only a broker or dealer
subject to suitability rules comparable to
those of a national securities association
registered pursuant to section 15A(a) effect
transactions in the security futures product;
``(G) require that the security futures
product be subject to the prohibition against
dual trading in section 4j of the Commodity
Exchange Act (7 U.S.C. 6j) and the rules and
regulations thereunder or the provisions of
section 11(a) of this title and the rules and
regulations thereunder, except to the extent
otherwise permitted under this title and the
rules and regulations thereunder;
``(H) require that trading in the security
futures product not be readily susceptible to
manipulation of the price of such security
futures product, nor to causing or being used
in the manipulation of the price of any
underlying security, option on such security,
or option on a group or index including such
securities;
``(I) require that procedures be in place
for coordinated surveillance among the market
on which the security futures product is
traded, any market on which any security
underlying the security futures product is
traded, and other markets on which any related
security is traded to detect manipulation and
insider trading;
``(J) require that the market on which the
security futures product is traded has in place
audit trails necessary or appropriate to
facilitate the coordinated surveillance
required in subparagraph (I);
``(K) require that the market on which the
security futures product is traded has in place
procedures to coordinate trading halts between
such market and any market on which any
security underlying the security futures
product is traded and other markets on which
any related security is traded; and
``(L) require that the margin requirements
for a security futures product comply with the
regulations prescribed pursuant to section
7(c)(2)(B), except that nothing in this
subparagraph shall be construed to prevent a
national securities exchange or national
securities association from requiring higher
margin levels for a security futures product
when it deems such action to be necessary or
appropriate.
``(4) Authority to modify certain listing standard
requirements.--
``(A) Authority to modify.--The Commission
and the Commodity Futures Trading Commission,
by rule, regulation, or order, may jointly
modify the listing standard requirements
specified in subparagraph (A) or (D) of
paragraph (3) to the extent such modification
fosters the development of fair and orderly
markets in security futures products, is
necessary or appropriate in the public
interest, and is consistent with the protection
of investors.
``(B) Authority to grant exemptions.--The
Commission and the Commodity Futures Trading
Commission, by order, may jointly exempt any
person from compliance with the listing
standard requirement specified in subparagraph
(E) of paragraph (3) to the extent such
exemption fosters the development of fair and
orderly markets in security futures products,
is necessary or appropriate in the public
interest, and is consistent with the protection
of investors.
``(5) Requirements for other persons trading
security future products.--It shall be unlawful for any
person (other than a national securities exchange or a
national securities association registered pursuant to
section 15A(a)) to constitute, maintain, or provide a
marketplace or facilities for bringing together
purchasers and sellers of security future products or
to otherwise perform with respect to security future
products the functions commonly performed by a stock
exchange as that term is generally understood, unless a
national securities association registered pursuant to
section 15A(a) or a national securities exchange of
which such person is a member--
``(A) has in place procedures for
coordinated surveillance among such person, the
market trading the securities underlying the
security future products, and other markets
trading related securities to detect
manipulation and insider trading;
``(B) has rules to require audit trails
necessary or appropriate to facilitate the
coordinated surveillance required in
subparagraph (A); and
``(C) has rules to require such person to
coordinate trading halts with markets trading
the securities underlying the security future
products and other markets trading related
securities.
``(6) Deferral of options on security futures
trading.--No person shall offer to enter into, enter
into, or confirm the execution of any put, call,
straddle, option, or privilege on a security future,
except that, after 3 years after the date of enactment
of this subsection, the Commission and the Commodity
Futures Trading Commission may by order jointly
determine to permit trading of puts, calls, straddles,
options, or privileges on any security future
authorized to be traded under the provisions of this
Act and the Commodity Exchange Act.
``(7) Deferral of linked and coordinated
clearing.--
``(A) Notwithstanding paragraph (2), until
the compliance date, a national securities
exchange or national securities association
registered pursuant to section 15A(a) may trade
a security futures product that does not--
``(i) conform with any listing
standard promulgated to meet the
requirement specified in subparagraph
(E) of paragraph (3); or
``(ii) meet the criterion specified
in section 2(a)(1)(D)(i)(IV) of the
Commodity Exchange Act.
``(B) The Commission and the Commodity
Futures Trading Commission shall jointly
publish in the Federal Register a notice of the
compliance date no later than 165 days before
the compliance date.
``(C) For purposes of this paragraph, the
term `compliance date' means the later of--
``(i) 180 days after the end of the
first full calendar month period in
which the average aggregate comparable
share volume for all security futures
products based on single equity
securities traded on all national
securities exchanges, any national
securities associations registered
pursuant to section 15A(a), and all
other persons equals or exceeds 10
percent of the average aggregate
comparable share volume of options on
single equity securities traded on all
national securities exchanges and any
national securities associations
registered pursuant to section 15A(a);
or
``(ii) 2 years after the date on
which trading in any security futures
product commences under this title.''.
(b) Margin.--Section 7 of the Securities Exchange Act of
1934 (15 U.S.C. 78g) is amended--
(1) in subsection (a), by inserting ``or a security
futures product'' after ``exempted security'';
(2) in subsection (c)(1)(A), by inserting ``except
as provided in paragraph (2),'' after ``security),'';
(3) by redesignating paragraph (2) of subsection
(c) as paragraph (3) of such subsection; and
(4) by inserting after paragraph (1) of such
subsection the following:
``(2) Margin regulations.--
``(A) Compliance with margin rules
required.--It shall be unlawful for any broker,
dealer, or member of a national securities
exchange to, directly or indirectly, extend or
maintain credit to or for, or collect margin
from any customer on, any security futures
product unless such activities comply with the
regulations--
``(i) which the Board shall
prescribe pursuant to subparagraph (B);
or
``(ii) if the Board determines to
delegate the authority to prescribe
such regulations, which the Commission
and the Commodity Futures Trading
Commission shall jointly prescribe
pursuant to subparagraph (B).
If the Board delegates the authority to
prescribe such regulations under clause (ii)
and the Commission and the Commodity Futures
Trading Commission have not jointly prescribed
such regulations within a reasonable period of
time after the date of such delegation, the
Board shall prescribe such regulations pursuant
to subparagraph (B).
``(B) Criteria for issuance of rules.--The
Board shall prescribe, or, if the authority is
delegated pursuant to subparagraph (A)(ii), the
Commission and the Commodity Futures Trading
Commission shall jointly prescribe, such
regulations to establish margin requirements,
including the establishment of levels of margin
(initial and maintenance) for security futures
products under such terms, and at such levels,
as the Board deems appropriate, or as the
Commission and the Commodity Futures Trading
Commission jointly deem appropriate--
``(i) to preserve the financial
integrity of markets trading security
futures products;
``(ii) to prevent systemic risk;
``(iii) to require that--
``(I) the margin
requirements for a security
future product be consistent
with the margin requirements
for comparable option contracts
traded on any exchange
registered pursuant to section
6(a) of this title; and
``(II) initial and
maintenance margin levels for a
security future product not be
lower than the lowest level of
margin, exclusive of premium,
required for any comparable
option contract traded on any
exchange registered pursuant to
section 6(a) of this title,
other than an option on a
security future;
except that nothing in this
subparagraph shall be construed to
prevent a national securities exchange
or national securities association from
requiring higher margin levels for a
security future product when it deems
such action to be necessary or
appropriate; and
``(iv) to ensure that the margin
requirements (other than levels of
margin), including the type, form, and
use of collateral for security futures
products, are and remain consistent
with the requirements established by
the Board, pursuant to subparagraphs
(A) and (B) of paragraph (1).''.
(c) Incorporation of Security Futures Products Into the
National Market System.--Section 11A of the Securities Exchange
Act of 1934 (15 U.S.C. 78k-1) is amended by adding at the end
the following:
``(e) National Markets System for Security Futures
Products.--
``(1) Consultation and cooperation required.--With
respect to security futures products, the Commission
and the Commodity Futures Trading Commission shall
consult and cooperate so that, to the maximum extent
practicable, their respective regulatory
responsibilities may be fulfilled and the rules and
regulations applicable to security futures products may
foster a national market system for security futures
products if the Commission and the Commodity Futures
Trading Commission jointly determine that such a system
would be consistent with the congressional findings in
subsection (a)(1). In accordance with this objective,
the Commission shall, at least 15 days prior to the
issuance for public comment of any proposed rule or
regulation under this section concerning security
futures products, consult and request the views of the
Commodity Futures Trading Commission.
``(2) Application of rules by order of cftc.--No
rule adopted pursuant to this section shall be applied
to any person with respect to the trading of security
futures products on an exchange that is registered
under section 6(g) unless the Commodity Futures Trading
Commission has issued an order directing that such rule
is applicable to such persons.''.
(d) Incorporation of Security Futures Products Into the
National System for Clearance and Settlement.--Section 17A(b)
of the Securities Exchange Act of 1934 (15 U.S.C. 78q-1(b)) is
amended by adding at the end the following:
``(7)(A) A clearing agency that is regulated directly or
indirectly by the Commodity Futures Trading Commission through
its association with a designated contract market for security
futures products that is a national securities exchange
registered pursuant to section 6(g), and that would be required
to register pursuant to paragraph (1) of this subsection only
because it performs the functions of a clearing agency with
respect to security futures products effected pursuant to the
rules of the designated contract market with which such agency
is associated, is exempted from the provisions of this section
and the rules and regulations thereunder, except that if such a
clearing agency performs the functions of a clearing agency
with respect to a security futures product that is not cash
settled, it must have arrangements in place with a registered
clearing agency to effect the payment and delivery of the
securities underlying the security futures product.
``(B) Any clearing agency that performs the functions of a
clearing agency with respect to security futures products must
coordinate with and develop fair and reasonable links with any
and all other clearing agencies that perform the functions of a
clearing agency with respect to security futures products, in
order to permit, as of the compliance date (as defined in
section 6(h)(6)(C)), security futures products to be purchased
on one market and offset on another market that trades such
products.''.
(e) Market Emergency Powers and Circuit Breakers.--Section
12(k) of the Securities Exchange Act of 1934 (15 U.S.C. 78l(k))
is amended--
(1) in paragraph (1), by adding at the end the
following: ``If the actions described in subparagraph
(A) or (B) involve a security futures product, the
Commission shall consult with and consider the views of
the Commodity Futures Trading Commission.''; and
(2) in paragraph (2)(B), by inserting after the
first sentence the following: ``If the actions
described in subparagraph (A) involve a security
futures product, the Commission shall consult with and
consider the views of the Commodity Futures Trading
Commission.''.
(f) Transaction Fees.--Section 31 of the Securities
Exchange Act of 1934 (15 U.S.C. 78ee) is amended--
(1) in subsection (a), by inserting ``and
assessments'' after ``fees'';
(2) in subsections (b), (c), and (d)(1), by
striking ``and other evidences of indebtedness'' and
inserting ``other evidences of indebtedness, and
security futures products'';
(3) in subsection (f), by inserting ``or
assessment'' after ``fee'';
(4) in subsection (g), by inserting ``and
assessment'' after ``fee'';
(5) by redesignating subsections (e), (f), and (g)
as subsections (f), (g), and (h), respectively; and
(6) by inserting after subsection (d) the following
new subsection:
``(e) Assessments on Security Futures Transactions.--Each
national securities exchange and national securities
association shall pay to the Commission an assessment equal to
$0.02 for each round turn transaction (treated as including one
purchase and one sale of a contract of sale for future
delivery) on a security future traded on such national
securities exchange or by or through any member of such
association otherwise than on a national securities exchange,
except that for fiscal year 2007 or any succeeding fiscal year
such assessment shall be equal to $0.0075 for each such
transaction. Assessments collected pursuant to this subsection
shall be deposited and collected as general revenue of the
Treasury.''.
(g) Exemption From Short Sale Provisions.--Section 10(a) of
the Securities Exchange Act of 1934 (15 U.S.C 78j(a)) is
amended--
(1) by inserting ``(1)'' after ``(a)''; and
(2) by adding at the end the following:
``(2) Paragraph (1) of this subsection shall not apply to
security futures products.''.
(h) Rulemaking Authority To Address Duplicative Regulation
of Dual Registrants.--Section 15(c)(3) of the Securities
Exchange Act of 1934 (15 U.S.C. 78o(c)(3))is amended--
(1) by inserting ``(A)'' after ``(3)''; and
(2) by adding at the end the following:
``(B) Consistent with this title, the Commission, in
consultation with the Commodity Futures Trading Commission,
shall issue such rules, regulations, or orders as are necessary
to avoid duplicative or conflicting regulations applicable to
any broker or dealer registered with the Commission pursuant to
section 15(b) (except paragraph (11) thereof), that is also
registered with the Commodity Futures Trading Commission
pursuant to section 4f(a) of the Commodity Exchange Act (except
paragraph (2) thereof), with respect to the application of (i)
the provisions of section 8, section 15(c)(3), and section 17
of this title and the rules and regulations thereunder related
to the treatment of customer funds, securities, or property,
maintenance of books and records, financial reporting, or other
financial responsibility rules, involving security futures
products and (ii) similar provisions of the Commodity Exchange
Act and rules and regulations thereunder involving security
futures products.''.
(i) Obligation To Address Duplicative Regulation of Dual
Registrants.--Section 6 of the Securities Exchange Act of 1934
(15 U.S.C 78f) is amended by inserting after subsection (h), as
added by subsection (a) of this section, the following:
``(i) Consistent with this title, each national securities
exchange registered pursuant to subsection (a) of this section
shall issue such rules as are necessary to avoid duplicative or
conflicting rules applicable to any broker or dealer registered
with the Commission pursuant to section 15(b) (except paragraph
(11) thereof), that is also registered with the Commodity
Futures Trading Commission pursuant to section 4f(a) of the
Commodity Exchange Act (except paragraph (2) thereof), with
respect to the application of--
(1) rules of such national securities exchange of
the type specified in section 15(c)(3)(B) involving
security futures products; and
(2) similar rules of national securities exchanges
registered pursuant to section 6(g) and national
securities associations registered pursuant to section
15A(k) involving security futures products.''.
(j) Obligation To Address Duplicative Regulation of Dual
Registrants.--Section 15A of the Securities Exchange Act of
1934 (15 U.S.C 78o-3) is amended by inserting after subsection
(k), as added by section 203, the following:
``(l) Consistent with this title, each national securities
association registered pursuant to subsection (a) of this
section shall issue such rules as are necessary to avoid
duplicative or conflicting rules applicable to any broker or
dealer registered with the Commission pursuant to section 15(b)
(except paragraph (11) thereof), that is also registered with
the Commodity Futures Trading Commission pursuant to section
4f(a) of the Commodity Exchange Act (except paragraph (2)
thereof), with respect to the application of--
``(1) rules of such national securities association
of the type specified in section 15(c)(3)(B) involving
security futures products; and
``(2) similar rules of national securities
associations registered pursuant to subsection (k) of
this section and national securities exchanges
registered pursuant to section 6(g) involving security
futures products.''.
(k) Obligation To Put in Place Procedures and Adopt
Rules.--
(1) National securities associations.--Section 15A
of the Securities Exchange Act of 1934 (15 U.S.C. 78o-
3) is amended by inserting after subsection (l), as
added by subsection (j) of this section, the following
new subsection:
``(m) Procedures and Rules for Security Future Products.--A
national securities association registered pursuant to
subsection (a) shall, not later than 8 months after the date of
enactment of the Commodity Futures Modernization Act of 2000,
implement the procedures specified in section 6(h)(5)(A) of
this title and adopt the rules specified in subparagraphs (B)
and (C) of section 6(h)(5) of this title.''.
(2) National securities exchanges.--Section 6 of
the Securities Exchange Act of 1934 (15 U.S.C. 78f) is
amended by inserting after subsection (i), as added by
subsection (i) of this section, the following new
subsection:
``(j) Procedures and Rules for Security Future Products.--A
national securities exchange registered pursuant to subsection
(a) shall implement the procedures specified in section
6(h)(5)(A) of this title and adopt the rules specified in
subparagraphs (B) and (C) of section 6(h)(5) of this title not
later than 8 months after the date of receipt of a request from
an alternative trading system for such implementation and
rules.''.
(l) Obligation To Address Security Futures Products Traded
on Foreign Exchanges.--Section 6 of the Securities Exchange Act
of 1934 (15 U.S.C. 78f) is amended by adding after subsection
(j), as added by subsection (k) of this section, the
following--
``(k)(1) To the extent necessary or appropriate in the
public interest, to promote fair competition, and consistent
with the promotion of market efficiency, innovation, and
expansion of investment opportunities, the protection of
investors, and the maintenance of fair and orderly markets, the
Commission and the Commodity Futures Trading Commission shall
jointly issue such rules, regulations, or orders as are
necessary and appropriate to permit the offer and sale of a
security futures product traded on or subject to the rules of a
foreign board of trade to United States persons.
``(2) The rules, regulations, or orders adopted under
paragraph (1) shall take into account, as appropriate, the
nature and size of the markets that the securities underlying
the security futures product reflect.''.
SEC. 207. CLEARANCE AND SETTLEMENT.
Section 17A(b) of the Securities Exchange Act of 1934 (15
U.S.C. 78q-1(b)) is amended--
(1) in paragraph (3)(A), by inserting ``and
derivative agreements, contracts, and transactions''
after ``prompt and accurate clearance and settlement of
securities transactions'';
(2) in paragraph (3)(F), by inserting ``and, to the
extent applicable, derivative agreements, contracts,
and transactions'' after ``designed to promote the
prompt and accurate clearance and settlement of
securities transactions''; and
(3) by inserting after paragraph (7), as added by
section 206(d), the following:
``(8) A registered clearing agency shall be permitted to
provide facilities for the clearance and settlement of any
derivative agreements, contracts, or transactions that are
excluded from the Commodity Exchange Act, subject to the
requirements of this section and to such rules and regulations
as the Commission may prescribe as necessary or appropriate in
the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of this title.''.
SEC. 208. AMENDMENTS RELATING TO REGISTRATION AND DISCLOSURE ISSUES
UNDER THE SECURITIES ACT OF 1933 AND THE SECURITIES
EXCHANGE ACT OF 1934.
(a) Amendments to the Securities Act of 1933.--
(1) Treatment of security futures products.--
Section 2(a) of the Securities Act of 1933 (15 U.S.C.
77b(a)) is amended--
(A) in paragraph (1), by inserting
``security future,'' after ``treasury stock,'';
(B) in paragraph (3), by adding at the end
the following: ``Any offer or sale of a
security futures product by or on behalf of the
issuer of the securities underlying the
security futures product, an affiliate of the
issuer, or an underwriter, shall constitute a
contract for sale of, sale of, offer for sale,
or offer to sell the underlying securities.'';
(C) by adding at the end the following:
``(16) The terms `security future', `narrow-based
security index', and `security futures product' have
the same meanings as provided in section 3(a)(55) of
the Securities Exchange Act of 1934.''.
(2) Exemption from registration.--Section 3(a) of
the Securities Act of 1933 (15 U.S.C. 77c(a)) is
amended by adding at the end the following:
``(14) Any security futures product that is--
``(A) cleared by a clearing agency
registered under section 17A of the Securities
Exchange Act of 1934 or exempt from
registration under subsection (b)(7) of such
section 17A; and
``(B) traded on a national securities
exchange or a national securities association
registered pursuant to section 15A(a) of the
Securities Exchange Act of 1934.''.
(3) Conforming amendment.--Section 12(a)(2) of the
Securities Act of 1933 (15 U.S.C. 77l(a)(2)) is amended
by striking ``paragraph (2)'' and inserting
``paragraphs (2) and (14)''.
(b) Amendments to the Securities Exchange Act of 1934.--
(1) Exemption from registration.--Section 12(a) of
the Securities Exchange Act of 1934 (15 U.S.C. 78l(a))
is amended by adding at the end the following: ``The
provisions of this subsection shall not apply in
respect of a security futures product traded on a
national securities exchange.''.
(2) Exemptions from reporting requirement.--Section
12(g)(5) of the Securities Exchange Act of 1934 (15
U.S.C. 78l(g)(5)) is amended by adding at the end the
following: ``For purposes of this subsection, a
security futures product shall not be considered a
class of equity security of the issuer of the
securities underlying the security futures product.''.
(3) Transactions by corporate insiders.--Section 16
of the Securities Exchange Act of 1934 (15 U.S.C. 78p)
is amended by adding at the end the following:
``(f) Treatment of Transactions in Security Futures
Products.--The provisions of this section shall apply to
ownership of and transactions in security futures products.''.
SEC. 209. AMENDMENTS TO THE INVESTMENT COMPANY ACT OF 1940 AND THE
INVESTMENT ADVISERS ACT OF 1940.
(a) Definitions Under the Investment Company Act of 1940
and the Investment Advisers Act of 1940.--
(1) Section 2(a)(36) of the Investment Company Act
of 1940 (15 U.S.C. 80a-2(a)(36)) is amended by
inserting ``security future,'' after ``treasury
stock,''.
(2) Section 202(a)(18) of the Investment Advisers
Act of 1940 (15 U.S.C. 80b-2(a)(18)) is amended by
inserting ``security future,'' after ``treasury
stock,''.
(3) Section 2(a) of the Investment Company Act of
1940 (15 U.S.C. 80a-2(a)) is amended by adding at the
end the following:
``(52) The terms `security future' and `narrow-
based security index' have the same meanings as
provided in section 3(a)(55) of the Securities Exchange
Act of 1934.''.
(4) Section 202(a) of the Investment Advisers Act
of 1940 (15 U.S.C. 80b-2(a)) is amended by adding at
the end the following:
``(27) The terms `security future' and `narrow-
based security index' have the same meanings as
provided in section 3(a)(55) of the Securities Exchange
Act of 1934.''.
(b) Other Provision.--Section 203(b) of the Investment
Advisers Act of 1940 (15 U.S.C. 80b-3(b)) is amended--
(1) by striking ``or'' at the end of paragraph (4);
(2) by striking the period at the end of paragraph
(5) and inserting ``; or''; and
(3) by adding at the end the following:
``(6) any investment adviser that is registered
with the Commodity Futures Trading Commission as a
commodity trading advisor whose business does not
consist primarily of acting as an investment adviser,
as defined in section 202(a)(11) of this title, and
that does not act as an investment adviser to--
``(A) an investment company registered
under title I of this Act; or
``(B) a company which has elected to be a
business development company pursuant to
section 54 of title I of this Act and has not
withdrawn its election.''.
SEC. 210. PREEMPTION OF STATE LAWS.
Section 28(a) of the Securities Exchange Act of 1934 (15
U.S.C. 78bb(a)) is amended--
(1) in the last sentence--
(A) by inserting ``subject to this title''
after ``privilege, or other security''; and
(B) by striking ``any such instrument, if
such instrument is traded pursuant to rules and
regulations of a self-regulatory organization
that are filed with the Commission pursuant to
section 19(b) of this Act'' and inserting ``any
such security''; and
(2) by adding at the end the following new
sentence: ``No provision of State law regarding the
offer, sale, or distribution of securities shall apply
to any transaction in a security futures product,
except that this sentence shall not be construed as
limiting any State antifraud law of general
applicability.''.
Subtitle B--Amendments to the Commodity Exchange Act
SEC. 251. JURISDICTION OF SECURITIES AND EXCHANGE COMMISSION; OTHER
PROVISIONS.
(a) Jurisdiction of Securities and Exchange Commission.--
(1) Section 2(a)(1)(C) of the Commodity Exchange
Act (7 U.S.C. 2a) (as redesignated by section
34(a)(2)(C)) is amended--
(A) in clause (ii)--
(i) by inserting ``or register a
derivatives transaction execution
facility that trades or executes,''
after ``contract market in,'';
(ii) by inserting after
``contracts) for future delivery'' the
following: ``, and no derivatives
transaction execution facility shall
trade or execute such contracts of sale
(or options on such contracts) for
future delivery,'';
(iii) by striking ``making such
application demonstrates and the
Commission expressly finds that the
specific contract (or option on such
contract) with respect to which the
application has been made meets'' and
inserting ``or the derivatives
transaction execution facility, and the
applicable contract, meet'';
(iv) by striking subclause (III) of
clause (ii) and inserting the
following:
``(III) Such group or index of securities
shall not constitute a narrow-based security
index.'';
(B) by striking clause (iii);
(C) by striking clause (iv) and inserting
the following:
``(iii) If, in its discretion, the Commission
determines that a stock index futures contract,
notwithstanding its conformance with the requirements
in clause (ii) of this subparagraph, can reasonably be
used as a surrogate for trading a security (including a
security futures product), it may, by order, require
such contract and any option thereon be traded and
regulated as security futures products as defined in
section 3(a)(56) of the Securities Exchange Act of 1934
and section 1a of this Act subject to all rules and
regulations applicable to security futures products
under this Act and the securities laws as defined in
section 3(a)(47) of the Securities Exchange Act of
1934.''; and
(D) by redesignating clause (v) as clause
(iv).
(2) Section 2(a)(1) of the Commodity Exchange Act
(7 U.S.C. 2, 2a, 4) is amended by adding at the end the
following:
``(D)(i) Notwithstanding any other provision of this Act,
the Securities and Exchange Commission shall have jurisdiction
and authority over security futures as defined in section
3(a)(55) of the Securities Exchange Act of 1934, section
2(a)(16) of the Securities Act of 1933, section 2(a)(52) of the
Investment Company Act of 1940, and section 202(a)(27) of the
Investment Advisers Act of 1940, options on security futures,
and persons effecting transactions in security futures and
options thereon, and this Act shall apply to and the Commission
shall have jurisdiction with respect to accounts, agreements
(including any transaction which is of the character of, or is
commonly known to the trade as, an `option', `privilege',
`indemnity', `bid', `offer', `put', `call', `advance guaranty',
or `decline guaranty'), contracts, and transactions involving,
and may designate a board of trade as a contract market in, or
register a derivatives transaction execution facility that
trades or executes, a security futures product as defined in
section 1a of this Act: Provided, however, That, except as
provided in clause (vi) of this subparagraph, no board of trade
shall be designated as a contract market with respect to, or
registered as a derivatives transaction execution facility for,
any such contracts of sale for future delivery unless the board
of trade and the applicable contract meet the following
criteria:
``(I) Except as otherwise provided in a rule,
regulation, or order issued pursuant to clause (v) of
this subparagraph, any security underlying the security
future, including each component security of a narrow-
based security index, is registered pursuant to section
12 of the Securities Exchange Act of 1934.
``(II) If the security futures product is not cash
settled, the board of trade on which the security
futures product is traded has arrangements in place
with a clearing agency registered pursuant to section
17A of the Securities Exchange Act of 1934 for the
payment and delivery of the securities underlying the
security futures product.
``(III) Except as otherwise provided in a rule,
regulation, or order issued pursuant to clause (v) of
this subparagraph, the security future is based upon
common stock and such other equity securities as the
Commission and the Securities and Exchange Commission
jointly determine appropriate.
``(IV) The security futures product is cleared by a
clearing agency that has in place provisions for linked
and coordinated clearing with other clearing agencies
that clear security futures products, which permits the
security futures product to be purchased on a
designated contract market, registered derivatives
transaction execution facility, national securities
exchange registered under section 6(a) of the
Securities Exchange Act of 1934, or national securities
association registered pursuant to section 15A(a) of
the Securities Exchange Act of 1934 and offset on
another designated contract market, registered
derivatives transaction execution facility, national
securities exchange registered under section 6(a) of
the Securities Exchange Act of 1934, or national
securities association registered pursuant to section
15A(a) of the Securities Exchange Act of 1934.
``(V) Only futures commission merchants,
introducing brokers, commodity trading advisors,
commodity pool operators or associated persons subject
to suitability rules comparable to those of a national
securities association registered pursuant to section
15A(a) of the Securities Exchange Act of 1934 solicit,
accept any order for, or otherwise deal in any
transaction in or in connection with the security
futures product.
``(VI) The security futures product is subject to a
prohibition against dual trading in section 4j of this
Act and the rules and regulations thereunder or the
provisions of section 11(a) of the Securities Exchange
Act of 1934 and the rules and regulations thereunder,
except to the extent otherwise permitted under the
Securities Exchange Act of 1934 and the rules and
regulations thereunder.
``(VII) Trading in the security futures product is
not readily susceptible to manipulation of the price of
such security futures product, nor to causing or being
used in the manipulation of the price of any underlying
security, option on such security, or option on a group
or index including such securities;
``(VIII) The board of trade on which the security
futures product is traded has procedures in place for
coordinated surveillance among such board of trade, any
market on which any security underlying the security
futures product is traded, and other markets on which
any related security is traded to detect manipulation
and insider trading, except that, if the board of trade
is an alternative trading system, a national securities
association registered pursuant to section 15A(a) of
the Securities Exchange Act of 1934 or national
securities exchange registered pursuant to section 6(a)
of the Securities Exchange Act of 1934 of which such
alternative trading system is a member has in place
such procedures.
``(IX) The board of trade on which the security
futures product is traded has in place audit trails
necessary or appropriate to facilitate the coordinated
surveillance required in subclause (VIII), except that,
if the board of trade is an alternative trading system,
a national securities association registered pursuant
to section 15A(a) of the Securities Exchange Act of
1934 or national securities exchange registered
pursuant to section 6(a) of the Securities Exchange Act
of 1934 of which such alternative trading system is a
member has rules to require such audit trails.
``(X) The board of trade on which the security
futures product is traded has in place procedures to
coordinate trading halts between such board of trade
and markets on which any security underlying the
security futures product is traded and other markets on
which any related security is traded, except that, if
the board of trade is an alternative trading system, a
national securities association registered pursuant to
section 15A(a) of the Securities Exchange Act of 1934
or national securities exchange registered pursuant to
section 6(a) of the Securities Exchange Act of 1934 of
which such alternative trading system is a member has
rules to require such coordinated trading halts.
``(XI) The margin requirements for a security
futures product comply with the regulations prescribed
pursuant to section 7(c)(2)(B) of the Securities
Exchange Act of 1934, except that nothing in this
subclause shall be construed to prevent a board of
trade from requiring higher margin levels for a
security futures product when it deems such action to
be necessary or appropriate.
``(ii) It shall be unlawful for any person to offer, to
enter into, to execute, to confirm the execution of, or to
conduct any office or business anywhere in the United States,
its territories or possessions, for the purpose of soliciting,
or accepting any order for, or otherwise dealing in, any
transaction in, or in connection with, a security futures
product unless--
``(I) the transaction is conducted on or subject to
the rules of a board of trade that--
``(aa) has been designated by the
Commission as a contract market in such
security futures product; or
``(bb) is a registered derivatives
transaction execution facility for the security
futures product that has provided a
certification with respect to the security
futures product pursuant to clause (vii);
``(II) the contract is executed or consummated by,
through, or with a member of the contract market or
registered derivatives transaction execution facility;
and
``(III) the security futures product is evidenced
by a record in writing which shows the date, the
parties to such security futures product and their
addresses, the property covered, and its price, and
each contract market member or registered derivatives
transaction execution facility member shall keep the
record for a period of 3 years from the date of the
transaction, or for a longer period if the Commission
so directs, which record shall at all times be open to
the inspection of any duly authorized representative of
the Commission.
``(iii)(I) Except as provided in subclause (II) but
notwithstanding any other provision of this Act, no person
shall offer to enter into, enter into, or confirm the execution
of any option on a security future.
``(II) After 3 years after the date of the enactment of the
Commodity Futures Modernization Act of 2000, the Commission and
the Securities and Exchange Commission may by order jointly
determine to permit trading of options on any security future
authorized to be traded under the provisions of this Act and
the Securities Exchange Act of 1934.
``(iv)(I) All relevant records of a futures commission
merchant or introducing broker registered pursuant to section
4f(a)(2), floor broker or floor trader exempt from registration
pursuant to section 4f(a)(3), associated person exempt from
registration pursuant to section 4k(6), or board of trade
designated as a contract market in a security futures product
pursuant to section 5f shall be subject to such reasonable
periodic or special examinations by representatives of the
Commission as the Commission deems necessary or appropriate in
the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of this Act, and the
Commission, before conducting any such examination, shall give
notice to the Securities and Exchange Commission of the
proposed examination and consult with the Securities and
Exchange Commission concerning the feasibility and desirability
of coordinating the examination with examinations conducted by
the Securities and Exchange Commission in order to avoid
unnecessary regulatory duplication or undue regulatory burdens
for the registrant or board of trade.
``(II) The Commission shall notify the Securities and
Exchange Commission of any examination conducted of any futures
commission merchant or introducing broker registered pursuant
to section 4f(a)(2), floor broker or floor trader exempt from
registration pursuant to section 4f(a)(3), associated person
exempt from registration pursuant to section 4k(6), or board of
trade designated as a contract market in a security futures
product pursuant to section 5f, and, upon request, furnish to
the Securities and Exchange Commission any examination report
and data supplied to or prepared by the Commission in
connection with the examination.
``(III) Before conducting an examination under subclause
(I), the Commission shall use the reports of examinations,
unless the information sought is unavailable in the reports, of
any futures commission merchant or introducing broker
registered pursuant to section 4f(a)(2), floor broker or floor
trader exempt from registration pursuant to section 4f(a)(3),
associated person exempt from registration pursuant to section
4k(6), or board of trade designated as a contract market in a
security futures product pursuant to section 5f that is made by
the Securities and Exchange Commission, a national securities
association registered pursuant to section 15A(a) of the
Securities Exchange Act of 1934 (15 U.S.C. 78o-3(a)), or a
national securities exchange registered pursuant to section
6(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78f(a)).
``(IV) Any records required under this subsection for a
futures commission merchant or introducing broker registered
pursuant to section 4f(a)(2), floor broker or floor trader
exempt from registration pursuant to section 4f(a)(3),
associated person exempt from registration pursuant to section
4k(6), or board of trade designated as a contract market in a
security futures product pursuant to section 5f, shall be
limited to records with respect to accounts, agreements,
contracts, and transactions involving security futures
products.
``(v)(I) The Commission and the Securities and Exchange
Commission, by rule, regulation, or order, may jointly modify
the criteria specified in subclause (I) or (III) of clause (i),
including the trading of security futures based on securities
other than equity securities, to the extent such modification
fosters the development of fair and orderly markets in security
futures products, is necessary or appropriate in the public
interest, and is consistent with the protection of investors.
``(II) The Commission and the Securities and Exchange
Commission, by order, may jointly exempt any person from
compliance with the criterion specified in clause (i)(IV) to
the extent such exemption fosters the development of fair and
orderly markets in security futures products, is necessary or
appropriate in the public interest, and is consistent with the
protection of investors.
``(vi)(I) Notwithstanding clauses (i) and (vii), until the
compliance date, a board of trade shall not be required to meet
the criterion specified in clause (i)(IV).
``(II) The Commission and the Securities and Exchange
Commission shall jointly publish in the Federal Register a
notice of the compliance date no later than 165 days before the
compliance date.
``(III) For purposes of this clause, the term `compliance
date' means the later of--
``(aa) 180 days after the end of the first full
calendar month period in which the average aggregate
comparable share volume for all security futures
products based on single equity securities traded on
all designated contract markets and registered
derivatives transaction execution facilities equals or
exceeds 10 percent of the average aggregate comparable
share volume of options on single equity securities
traded on all national securities exchanges registered
pursuant to section 6(a) of the Securities Exchange Act
of 1934 and any national securities associations
registered pursuant to section 15A(a) of such Act; or
``(bb) 2 years after the date on which trading in
any security futures product commences under this Act.
``(vii) It shall be unlawful for a board of trade to trade
or execute a security futures product unless the board of trade
has provided the Commission with a certification that the
specific security futures product and the board of trade, as
applicable, meet the criteria specified in subclauses (I)
through (XI) of clause (i), except as otherwise provided in
clause (vi).''.
(b) Margin on Security Futures.--Section 2(a)(1)(C)(vi) of
the Commodity Exchange Act (7 U.S.C. 2a(vi)) (as redesignated
by section 34) is amended--
(1) by redesignating subclause (V) as subclause
(VI); and
(2) by striking ``(vi)(I)'' and all that follows
through subclause (IV) and inserting the following:
``(v)(I) Notwithstanding any other provision of
this Act, any contract market in a stock index futures
contract (or option thereon) other than a security
futures product, or any derivatives transaction
execution facility on which such contract or option is
traded, shall file with the Board of Governors of the
Federal Reserve System any rule establishing or
changing the levels of margin (initial and maintenance)
for such stock index futures contract (or option
thereon) other than security futures products.
``(II) The Board may at any time request any
contract market or derivatives transaction execution
facility to set the margin for any stock index futures
contract (or option thereon), other than for any
security futures product, at such levels as the Board
in its judgment determines are appropriate to preserve
the financial integrity of the contract market or
derivatives transaction execution facility, or its
clearing system, or to prevent systemic risk. If the
contract market or derivatives transaction execution
facility fails to do so within the time specified by
the Board in its request, the Board may direct the
contract market or derivatives transaction execution
facility to alter or supplement the rules of the
contract market or derivatives transaction execution
facility as specified in the request.
``(III) Subject to such conditions as the Board may
determine, the Board may delegate any or all of its
authority, relating to margin for any stock index
futures contract (or option thereon), other than
security futures products, under this clause to the
Commission.
``(IV) It shall be unlawful for any futures
commission merchant to, directly or indirectly, extend
or maintain credit to or for, or collect margin from
any customer on any security futures product unless
such activities comply with the regulations prescribed
pursuant to section 7(c)(2)(B) of the Securities
Exchange Act of 1934.
``(V) Nothing in this clause shall supersede or
limit the authority granted to the Commission in
section 8a(9) to direct a contract market or registered
derivatives transaction execution facility, on finding
an emergency to exist, to raise temporary margin levels
on any futures contract, or option on the contract
covered by this clause, or on any security futures
product.''.
(c) Dual Trading.--Section 4j of the Commodity Exchange Act
(7 U.S.C. 6j) is amended to read as follows:
``SEC. 4J. RESTRICTIONS ON DUAL TRADING IN SECURITY FUTURES PRODUCTS ON
DESIGNATED CONTRACT MARKETS AND REGISTERED
DERIVATIVES TRANSACTION EXECUTION FACILITIES.
``(a) The Commission shall issue regulations to prohibit
the privilege of dual trading in security futures products on
each contract market and registered derivatives transaction
execution facility. The regulations issued by the Commission
under this section--
``(1) shall provide that the prohibition of dual
trading thereunder shall take effect upon issuance of
the regulations; and
``(2) shall provide exceptions, as the Commission
determines appropriate, to ensure fairness and orderly
trading in security futures product markets,
including--
``(A) exceptions for spread transactions
and the correction of trading errors;
``(B) allowance for a customer to designate
in writing not less than once annually a named
floor broker to execute orders for such
customer, notwithstanding the regulations to
prohibit the privilege of dual trading required
under this section; and
``(C) other measures reasonably designed to
accommodate unique or special characteristics
of individual boards of trade or contract
markets, to address emergency or unusual market
conditions, or otherwise to further the public
interest consistent with the promotion of
market efficiency, innovation, and expansion of
investment opportunities, the protection of
investors, and with the purposes of this
section.
``(b) As used in this section, the term `dual trading'
means the execution of customer orders by a floor broker during
the same trading session in which the floor broker executes any
trade in the same contract market or registered derivatives
transaction execution facility for--
``(1) the account of such floor broker;
``(2) an account for which such floor broker has
trading discretion; or
``(3) an account controlled by a person with whom
such floor broker has a relationship through membership
in a broker association.
``(c) As used in this section, the term `broker
association' shall include two or more contract market members
or registered derivatives transaction execution facility
members with floor trading privileges of whom at least one is
acting as a floor broker, who--
``(1) engage in floor brokerage activity on behalf
of the same employer,
``(2) have an employer and employee relationship
which relates to floor brokerage activity,
``(3) share profits and losses associated with
their brokerage or trading activity, or
``(4) regularly share a deck of orders.''.
(d) Exemption From Registration for Investment Advisers.--
Section 4m of the Commodity Exchange Act (7 U.S.C. 6m) is
amended by adding at the end the following:
``(3) Subsection (1) of this section shall not apply to any
commodity trading advisor that is registered with the
Securities and Exchange Commission as an investment adviser
whose business does not consist primarily of acting as a
commodity trading advisor, as defined in section 1a(6), and
that does not act as a commodity trading advisor to any
investment trust, syndicate, or similar form of enterprise that
is engaged primarily in trading in any commodity for future
delivery on or subject to the rules of any contract market or
registered derivatives transaction execution facility.''.
(e) Exemption From Investigations of Markets in Underlying
Securities.--Section 16 of the Commodity Exchange Act (7 U.S.C.
20) is amended by adding at the end the following:
``(e) This section shall not apply to investigations
involving any security underlying a security futures
product.''.
(f) Rulemaking Authority To Address Duplicative Regulation
of Dual Registrants.--Section 4d of the Commodity Exchange Act
(7 U.S.C. 6d) is amended--
(1) by inserting ``(a)'' before the first
undesignated paragraph;
(2) by inserting ``(b)'' before the second
undesignated paragraph; and
(3) by adding at the end the following:
``(c) Consistent with this Act, the Commission, in
consultation with the Securities and Exchange Commission, shall
issue such rules, regulations, or orders as are necessary to
avoid duplicative or conflicting regulations applicable to any
futures commission merchant registered with the Commission
pursuant to section 4f(a) (except paragraph (2) thereof), that
is also registered with the Securities and Exchange Commission
pursuant to section 15(b) of the Securities Exchange Act
(except paragraph (11) thereof), involving the application of--
``(1) section 8, section 15(c)(3), and section 17
of the Securities Exchange Act of 1934 and the rules
and regulations thereunder related to the treatment of
customer funds, securities, or property, maintenance of
books and records, financial reporting or other
financial responsibility rules (as defined in section
3(a)(40) of the Securities Exchange Act of 1934),
involving security futures products; and
``(2) similar provisions of this Act and the rules
and regulations thereunder involving security futures
products.''.
(g) Obligation To Address Duplicative Regulation of Dual
Registrants.--Section 17 of the Commodity Exchange Act (7
U.S.C. 21) is amended by adding at the end the following:
``(r) Consistent with this Act, each futures association
registered under this section shall issue such rules as are
necessary to avoid duplicative or conflicting rules applicable
to any futures commission merchant registered with the
Commission pursuant to section 4f(a) of this Act (except
paragraph (2) thereof), that is also registered with the
Securities and Exchange Commission pursuant to section 15(b) of
the Securities and Exchange Act of 1934 (except paragraph (11)
thereof), with respect to the application of--
``(1) rules of such futures association of the type
specified in section 4d(3) of this Act involving
security futures products; and
``(2) similar rules of national securities
associations registered pursuant to section 15A(a) of
the Securities and Exchange Act of 1934 involving
security futures products.''.
(h) Obligation to Address Duplicative Regulation of Dual
Registrants.--Section 5c of the Commodity Exchange Act (as
added by section 114) is amended by adding at the end the
following:
``(f) Consistent with this Act, each designated contract
market and registered derivatives transaction execution
facility shall issue such rules as are necessary to avoid
duplicative or conflicting rules applicable to any futures
commission merchant registered with the Commission pursuant to
section 4f(a) of this Act (except paragraph (2) thereof), that
is also registered with the Securities and Exchange Commission
pursuant to section 15(b) of the Securities Exchange Act of
1934 (except paragraph (11) thereof) with respect to the
application of--
``(1) rules of such designated contract market or
registered derivatives transaction execution facility
of the type specified in section 4d(3) of this Act
involving security futures products; and
``(2) similar rules of national securities
associations registered pursuant to section 15A(a) of
the Securities Exchange Act of 1934 and national
securities exchanges registered pursuant to section
6(g) of such Act involving security futures
products.''.
(i) Obligation To Address Security Futures Products Traded
on Foreign Exchanges.--Section 2(a)(1) of the Commodity
Exchange Act (7 U.S.C. 2, 2a, and 4) is amended by adding at
the end the following:
``(E)(i) To the extent necessary or appropriate in the
public interest, to promote fair competition, and consistent
with promotion of market efficiency, innovation, and expansion
of investment opportunities, the protection of investors, and
the maintenance of fair and orderly markets, the Commission and
the Securities and Exchange Commission shall jointly issue such
rules, regulations, or orders as are necessary and appropriate
to permit the offer and sale of a security futures product
traded on or subject to the rules of a foreign board of trade
to United States persons.
``(ii) The rules, regulations, or orders adopted under
clause (i) shall take into account, as appropriate, the nature
and size of the markets that the securities underlying the
security futures product reflects.''.
(j) Security Futures Products Traded on Foreign Boards of
Trade.--Section 2(a)(1) of the Commodity Exchange Act (7 U.S.C.
2, 2a, and 4) is amended by adding at the end the following:
``(F)(i) Nothing in this Act is intended to prohibit a
futures commission merchant from carrying security futures
products traded on or subject to the rules of a foreign board
of trade in the accounts of persons located outside of the
United States.
``(ii) Nothing in this Act is intended to prohibit any
eligible contract participant located in the United States from
purchasing or carrying securities futures products traded on or
subject to the rules of a foreign board of trade, exchange, or
market to the same extent such person may be authorized to
purchase or carry other securities traded on a foreign board of
trade, exchange, or market so long as any underlying security
for such security futures products is traded principally on,
by, or through any exchange or market located outside the
United States.''.
SEC. 252. APPLICATION OF THE COMMODITY EXCHANGE ACT TO NATIONAL
SECURITIES EXCHANGES AND NATIONAL SECURITIES
ASSOCIATIONS THAT TRADE SECURITY FUTURES.
(a) Notice Designation of National Securities Exchanges and
National Securities Associations.--The Commodity Exchange Act
is amended by inserting after section 5e (7 U.S.C. 7b), as
redesignated by section 21(1), the following:
``SEC. 5F. DESIGNATION OF SECURITIES EXCHANGES AND ASSOCIATIONS AS
CONTRACT MARKETS.
``(a) Any board of trade that is registered with the
Securities and Exchange Commission as a national securities
exchange, is a national securities association registered
pursuant to section 15A(a) of the Securities Exchange Act of
1934, or is an alternative trading system shall be a designated
contract market in security futures products if--
``(1) such national securities exchange, national
securities association, or alternative trading system
lists or trades no other contracts of sale for future
delivery, except for security futures products;
``(2) such national securities exchange, national
securities association, or alternative trading system
files written notice with the Commission in such form
as the Commission, by rule, may prescribe containing
such information as the Commission, by rule, may
prescribe as necessary or appropriate in the public
interest or for the protection of customers; and
``(3) the registration of such national securities
exchange, national securities association, or
alternative trading system is not suspended pursuant to
an order by the Securities and Exchange Commission.
Such designation shall be effective contemporaneously with the
submission of notice, in written or electronic form, to the
Commission.
``(b)(1) A national securities exchange, national
securities association, or alternative trading system that is
designated as a contract market pursuant to section 5f shall be
exempt from the following provisions of this Act and the rules
thereunder:
``(A) Subsections (c), (e), and (g) of section 4c.
``(B) Section 4j.
``(C) Section 5.
``(D) Section 5c.
``(E) Section 6a.
``(F) Section 8(d).
``(G) Section 9(f).
``(H) Section 16.
``(2) An alternative trading system that is a designated
contract market under this section shall be required to be a
member of a futures association registered under section 17 and
shall be exempt from any provision of this Act that would
require such alternative trading system to--
``(A) set rules governing the conduct of
subscribers other than the conduct of such subscribers'
trading on such alternative trading system; or
``(B) discipline subscribers other than by
exclusion from trading.
``(3) To the extent that an alternative trading system is
exempt from any provision of this Act pursuant to paragraph (2)
of this subsection, the futures association registered under
section 17 of which the alternative trading system is a member
shall set rules governing the conduct of subscribers to the
alternative trading system and discipline the subscribers.
``(4)(A) Except as provided in subparagraph (B), but
notwithstanding any other provision of this Act, the
Commission, by rule, regulation, or order, may conditionally or
unconditionally exempt any designated contract market in
security futures subject to the designation requirement of this
section from any provision of this Act or of any rule or
regulation thereunder, to the extent such exemption is
necessary or appropriate in the public interest and is
consistent with the protection of investors.
``(B) The Commission shall, by rule or regulation,
determine the procedures under which an exemptive order under
this section is granted and may, in its sole discretion,
decline to entertain any application for an order of exemption
under this section.
``(C) An alternative trading system shall not be deemed to
be an exchange for any purpose as a result of the designation
of such alternative trading system as a contract market under
this section.''.
(b) Notice Registration of Certain Securities Broker-
Dealers; Exemption From Registration for Certain Securities
Broker-Dealers.--Section 4f(a) of the Commodity Exchange Act (7
U.S.C. 6f(a)) is amended--
(1) by inserting ``(1)'' after ``(a)''; and
(2) by adding at the end the following:
``(2) Notwithstanding paragraph (1), and except as provided
in paragraph (3), any broker or dealer that is registered with
the Securities and Exchange Commission shall be registered as a
futures commission merchant or introducing broker, as
applicable, if--
``(A) the broker or dealer limits its solicitation
of orders, acceptance of orders, or execution of
orders, or placing of orders on behalf of others
involving any contracts of sale of any commodity for
future delivery, on or subject to the rules of any
contract market or registered derivatives transaction
execution facility to security futures products;
``(B) the broker or dealer files written notice
with the Commission in such form as the Commission, by
rule, may prescribe containing such information as the
Commission, by rule, may prescribe as necessary or
appropriate in the public interest or for the
protection of investors;
``(C) the registration of the broker or dealer is
not suspended pursuant to an order of the Securities
and Exchange Commission; and
``(D) the broker or dealer is a member of a
national securities association registered pursuant to
section 15A(a) of the Securities Exchange Act of 1934.
The registration shall be effective contemporaneously with the
submission of notice, in written or electronic form, to the
Commission.
``(3) A floor broker or floor trader shall be exempt from
the registration requirements of section 4e and paragraph (1)
of this subsection if--
``(A) the floor broker or floor trader is a broker
or dealer registered with the Securities and Exchange
Commission;
``(B) the floor broker or floor trader limits its
solicitation of orders, acceptance of orders, or
execution of orders, or placing of orders on behalf of
others involving any contracts of sale of any commodity
for future delivery, on or subject to the rules of any
contract market to security futures products; and
``(C) the registration of the floor broker or floor
trader is not suspended pursuant to an order of the
Securities and Exchange Commission.''.
(c) Exemption for Securities Broker-Dealers From Certain
Provisions of the Commodity Exchange Act.--Section 4f(a) of the
Commodity Exchange Act (7 U.S.C. 6f(a)) is amended by inserting
after paragraph (3), as added by subsection (b) of this
section, the following:
``(4)(A) A broker or dealer that is registered as a futures
commission merchant or introducing broker pursuant to paragraph
(2), or that is a floor broker or floor trader exempt from
registration pursuant to paragraph (3), shall be exempt from
the following provisions of this Act and the rules thereunder:
``(i) Subsections (b), (d), (e), and (g) of section
4c.
``(ii) Sections 4d, 4e, and 4h.
``(iii) Subsections (b) and (c) of this section.
``(iv) Section 4j.
``(v) Section 4k(1).
``(vi) Section 4p.
``(vii) Section 6d.
``(viii) Subsections (d) and (g) of section 8.
``(ix) Section 16.
``(B)(i) Except as provided in clause (ii) of this
subparagraph, but notwithstanding any other provision of this
Act, the Commission, by rule, regulation, or order, may
conditionally or unconditionally exempt any broker or dealer
subject to the registration requirement of paragraph (2), or
any broker or dealer exempt from registration pursuant to
paragraph (3), from any provision of this Act or of any rule or
regulation thereunder, to the extent the exemption is necessary
or appropriate in the public interest and is consistent with
the protection of investors.
``(ii) The Commission shall, by rule or regulation,
determine the procedures under which an exemptive order under
this section shall be granted and may, in its sole discretion,
decline to entertain any application for an order of exemption
under this section.
``(C)(i) A broker or dealer that is registered as a futures
commission merchant or introducing broker pursuant to paragraph
(2) or an associated person thereof, or that is a floor broker
or floor trader exempt from registration pursuant to paragraph
(3), shall not be required to become a member of any futures
association registered under section 17.
``(ii) No futures association registered under section 17
shall limit its members from carrying an account, accepting an
order, or transacting business with a broker or dealer that is
registered as a futures commission merchant or introducing
broker pursuant to paragraph (2) or an associated person
thereof, or that is a floor broker or floor trader exempt from
registration pursuant to paragraph (3).''.
(d) Exemptions for Associated Persons of Securities Broker-
Dealers.--Section 4k of the Commodity Exchange Act (7 U.S.C.
6k), is amended by inserting after paragraph (4), as added by
subsection (c) of this section, the following:
``(5) Any associated person of a broker or dealer that is
registered with the Securities and Exchange Commission, and who
limits its solicitation of orders, acceptance of orders, or
execution of orders, or placing of orders on behalf of others
involving any contracts of sale of any commodity for future
delivery or any option on such a contract, on or subject to the
rules of any contract market or registered derivatives
transaction execution facility to security futures products,
shall be exempt from the following provisions of this Act and
the rules thereunder:
``(A) Subsections (b), (d), (e), and (g) of section
4c.
``(B) Sections 4d, 4e, and 4h.
``(C) Subsections (b) and (c) of section 4f.
``(D) Section 4j.
``(E) Paragraph (1) of this section.
``(F) Section 4p.
``(G) Section 6d.
``(H) Subsections (d) and (g) of section 8.
``(I) Section 16.''.
SEC. 253. NOTIFICATION OF INVESTIGATIONS AND ENFORCEMENT ACTIONS.
(a) Section 8(a) of the Commodity Exchange Act (7 U.S.C.
12(a)) is amended by adding at the end the following:
``(3) The Commission shall provide the Securities and
Exchange Commission with notice of the commencement of any
proceeding and a copy of any order entered by the Commission
against any futures commission merchant or introducing broker
registered pursuant to section 4f(a)(2), any floor broker or
floor trader exempt from registration pursuant to section
4f(a)(3), any associated person exempt from registration
pursuant to section 4k(6), or any board of trade designated as
a contract market pursuant to section 5f.''.
(b) Section 6 of the Commodity Exchange Act (7 U.S.C. 8, 9,
9a, 9b, 13b, 15) is amended by adding at the end the following:
``(g) The Commission shall provide the Securities and
Exchange Commission with notice of the commencement of any
proceeding and a copy of any order entered by the Commission
pursuant to subsections (c) and (d) of this section against any
futures commission merchant or introducing broker registered
pursuant to section 4f(a)(2), any floor broker or floor trader
exempt from registration pursuant to section 4f(a)(3), any
associated person exempt from registration pursuant to section
4k(6), or any board of trade designated as a contract market
pursuant to section 5f.''.
(c) Section 6c of the Commodity Exchange Act (7 U.S.C. 13a-
1) is amended by adding at the end the following:
``(h) The Commission shall provide the Securities and
Exchange Commission with notice of the commencement of any
proceeding and a copy of any order entered by the Commission
against any futures commission merchant or introducing broker
registered pursuant to section 4f(a)(2), any floor broker or
floor trader exempt from registration pursuant to section
4f(a)(3), any associated person exempt from registration
pursuant to section 4k(6), or any board of trade designated as
a contract market pursuant to section 5f.''.
TITLE III--LEGAL CERTAINTY FOR SWAP AGREEMENTS
SEC. 301. SWAP AGREEMENT.
(a) Amendment.--Title II of the Gramm-Leach-Bliley Act
(Public Law 106-102) is amended by inserting after section 206
the following new sections:
``SEC. 206A. SWAP AGREEMENT.
``(a) In General.--Except as provided in subsection (b), as
used in this section, the term `swap agreement' means any
agreement, contract, or transaction between eligible contract
participants (as defined in section 1a(12) of the Commodity
Exchange Act as in effect on the date of enactment of this
section), other than a person that is an eligible contract
participant under section 1a(12)(C) of the Commodity Exchange
Act, the material terms of which (other than price and
quantity) are subject to individual negotiation, and that--
``(1) is a put, call, cap, floor, collar, or
similar option of any kind for the purchase or sale of,
or based on the value of, one or more interest or other
rates, currencies, commodities, indices, quantitative
measures, or other financial or economic interests or
property of any kind;
``(2) provides for any purchase, sale, payment or
delivery (other than a dividend on an equity security)
that is dependent on the occurrence, non-occurrence, or
the extent of the occurrence of an event or contingency
associated with a potential financial, economic, or
commercial consequence;
``(3) provides on an executory basis for the
exchange, on a fixed or contingent basis, of one or
more payments based on the value or level of one or
more interest or other rates, currencies, commodities,
securities, instruments of indebtedness, indices,
quantitative measures, or other financial or economic
interests or property of any kind, or any interest
therein or based on the value thereof, and that
transfers, as between the parties to the transaction,
in whole or in part, the financial risk associated with
a future change in any such value or level without also
conveying a current or future direct or indirect
ownership interest in an asset (including any
enterprise or investment pool) or liability that
incorporates the financial risk so transferred,
including any such agreement, contract, or transaction
commonly known as an interest rate swap, including a
rate floor, rate cap, rate collar, cross-currency rate
swap, basis swap, currency swap, equity index swap,
equity swap, debt index swap, debt swap, credit spread,
credit default swap, credit swap, weather swap, or
commodity swap;
``(4) provides for the purchase or sale, on a fixed
or contingent basis, of any commodity, currency,
instrument, interest, right, service, good, article, or
property of any kind; or
``(5) is any combination or permutation of, or
option on, any agreement, contract, or transaction
described in any of paragraphs (1) through (4).
``(b) Exclusions.--The term `swap agreement' does not
include--
``(1) any put, call, straddle, option, or privilege
on any security, certificate of deposit, or group or
index of securities, including any interest therein or
based on the value thereof;
``(2) any put, call, straddle, option, or privilege
entered into on a national securities exchange
registered pursuant to section 6(a) of the Securities
Exchange Act of 1934 relating to foreign currency;
``(3) any agreement, contract, or transaction
providing for the purchase or sale of one or more
securities on a fixed basis;
``(4) any agreement, contract, or transaction
providing for the purchase or sale of one or more
securities on a contingent basis, unless such
agreement, contract, or transaction predicates such
purchase or sale on the occurrence of a bona fide
contingency that might reasonably be expected to affect
or be affected by the creditworthiness of a party other
than a party to the agreement, contract, or
transaction;
``(5) any note, bond, or evidence of indebtedness
that is a security as defined in section 2(a)(1) of the
Securities Exchange Act of 1933 or section 3(a)(10) of
the Securities Exchange Act of 1934; or
``(6) any agreement, contract, or transaction that
is--
``(A) based on a security; and
``(B) entered into directly or through an
underwriter (as defined in section 2(a) of the
Securities Act of 1933) by the issuer of such
security for the purposes of raising capital,
unless such agreement, contract, or transaction
is entered into to manage a risk associated
with capital raising.
``(c) Rule of Construction Regarding Master Agreements.--As
used in this section, the term `swap agreement' shall be
construed to include a master agreement that provides for an
agreement, contract, or transaction that is a swap agreement
pursuant to subsections (a) and (b), together with all
supplements to any such master agreement, without regard to
whether the master agreement contains an agreement, contract,
or transaction that is not a swap agreement pursuant to
subsections (a) and (b), except that the master agreement shall
be considered to be a swap agreement only with respect to each
agreement, contract, or transaction under the master agreement
that is a swap agreement pursuant to subsections (a) and (b).
``SEC. 206B. SECURITY-BASED SWAP AGREEMENT.
``As used in this section, the term `security-based swap
agreement' means a swap agreement (as defined in section 206A)
of which a material term is based on the price, yield, value,
or volatility of any security or any group or index of
securities, or any interest therein.
``SEC. 206C. NON-SECURITY-BASED SWAP AGREEMENT.
``As used in this section, the term `non-security-based
swap agreement' means any swap agreement (as defined in section
206A) that is not a security-based swap agreement (as defined
in section 206B).''.
(b) Security Definition.--As used in the amendment made by
subsection (a), the term ``security'' has the same meaning as
in section 2(a)(1) of the Securities Act of 1933 or section
3(a)(10) of the Securities Exchange Act of 1934.
SEC. 302. AMENDMENTS TO THE SECURITIES ACT OF 1933.
(a) Enforcement Focus.--The Securities Act of 1933 is
amended by inserting after section 2 (15 U.S.C. 77b) the
following new section:
``SEC. 2A. SWAP AGREEMENTS.
``(a) Non-Security-Based Swap Agreements.--The definition
of `security' in section 2(a)(1) of this title does not include
any non-security-based swap agreement (as defined in section
206C of the Gramm-Leach-Bliley Act).
``(b) Security-Based Swap Agreements.--
``(1) The definition of `security' in section
2(a)(1) of this title does not include any security-
based swap agreement (as defined in section 206B of the
Gramm-Leach-Bliley Act).
``(2) The Commission is prohibited from
registering, or requiring, recommending, or suggesting,
the registration under this title of any security-based
swap agreement (as defined in section 206B of the
Gramm-Leach-Bliley Act). If the Commission becomes
aware that a registrant has filed a registration
statement with respect to such a swap agreement, the
Commission shall promptly so notify the registrant. Any
such registration statement with respect to such a swap
agreement shall be void and of no force or effect.
``(3) The Commission is prohibited from--
``(A) promulgating, interpreting, or
enforcing rules; or
``(B) issuing orders of general
applicability;
under this title in a manner that imposes or specifies
reporting or recordkeeping requirements, procedures, or
standards as prophylactic measures against fraud,
manipulation, or insider trading with respect to any
security-based swap agreement (as defined in section
206B of the Gramm-Leach-Bliley Act).
``(4) References in this title to the `purchase' or
`sale' of a security-based swap agreement shall be
deemed to mean the execution, termination (prior to its
scheduled maturity date), assignment, exchange, or
similar transfer or conveyance of, or extinguishing of
rights or obligations under, a security-based swap
agreement (as defined in section 206B of the Gramm-
Leach-Bliley Act), as the context may require.''.
(b) Anti-Fraud and Anti-Manipulation Enforcement
Authority.--Section 17(a) of the Securities Act of 1933 (15
U.S.C. 77q(a)) is amended to read as follows:
``(a) It shall be unlawful for any person in the offer or
sale of any securities or any security-based swap agreement (as
defined in section 206B of the Gramm-Leach-Bliley Act) by the
use of any means or instruments of transportation or
communication in interstate commerce or by use of the mails,
directly or indirectly--
``(1) to employ any device, scheme, or artifice to
defraud, or
``(2) to obtain money or property by means of any
untrue statement of a material fact or any omission to
state a material fact necessary in order to make the
statements made, in light of the circumstances under
which they were made, not misleading; or
``(3) to engage in any transaction, practice, or
course of business which operates or would operate as a
fraud or deceit upon the purchaser.''.
(c) Limitation.--Section 17 of the Securities Act of 1933
is amended by adding at the end the following new subsection:
``(d) The authority of the Commission under this section
with respect to security-based swap agreements (as defined in
section 206B of the Gramm-Leach-Bliley Act) shall be subject to
the restrictions and limitations of section 2A(b) of this
title.''.
SEC. 303. AMENDMENTS TO THE SECURITIES EXCHANGE ACT OF 1934.
(a) Enforcement Focus.--The Securities Exchange Act of 1934
is amended by inserting after section 3 (15 U.S.C. 78c) the
following new section:
``SEC. 3A. SWAP AGREEMENTS.
``(a) Non-Security-Based Swap Agreements.--The definition
of `security' in section 3(a)(10) of this title does not
include any non-security-based swap agreement (as defined in
section 206C of the Gramm-Leach-Bliley Act).
``(b) Security-Based Swap Agreements.--
``(1) The definition of `security' in section
3(a)(10) of this title does not include any security-
based swap agreement (as defined in section 206B of the
Gramm-Leach-Bliley Act).
``(2) The Commission is prohibited from
registering, or requiring, recommending, or suggesting,
the registration under this title of any security-based
swap agreement (as defined in section 206B of the
Gramm-Leach-Bliley Act). If the Commission becomes
aware that a registrant has filed a registration
application with respect to such a swap agreement, the
Commission shall promptly so notify the registrant. Any
such registration with respect to such a swap agreement
shall be void and of no force or effect.
``(3) Except as provided in section 16(a) with
respect to reporting requirements, the Commission is
prohibited from--
``(A) promulgating, interpreting, or
enforcing rules; or
``(B) issuing orders of general
applicability;
under this title in a manner that imposes or specifies
reporting or recordkeeping requirements, procedures, or
standards as prophylactic measures against fraud,
manipulation, or insider trading with respect to any
security-based swap agreement (as defined in section
206B of the Gramm-Leach-Bliley Act).
``(4) References in this title to the `purchase' or
`sale' of a security-based swap agreement (as defined
in section 206B of the Gramm-Leach-Bliley Act) shall be
deemed to mean the execution, termination (prior to its
scheduled maturity date), assignment, exchange, or
similar transfer or conveyance of, or extinguishing of
rights or obligations under, a security-based swap
agreement, as the context may require.''.
(b) Anti-Fraud, Anti-Manipulation Enforcement Authority.--
Paragraphs (2) through (5) of section 9(a) of the Securities
Exchange Act of 1934 (15 U.S.C. 78i(a)(2)-(5)) are amended to
read as follows:
``(2) To effect, alone or with one or more other persons, a
series of transactions in any security registered on a national
securities exchange or in connection with any security-based
swap agreement (as defined in section 206B of the Gramm-Leach-
Bliley Act) with respect to such security creating actual or
apparent active trading in such security, or raising or
depressing the price of such security, for the purpose of
inducing the purchase or sale of such security by others.
``(3) If a dealer or broker, or other person selling or
offering for sale or purchasing or offering to purchase the
security or a security-based swap agreement (as defined in
section 206B of the Gramm-Leach-Bliley Act) with respect to
such security, to induce the purchase or sale of any security
registered on a national securities exchange or any security-
based swap agreement (as defined in section 206B of the Gramm-
Leach-Bliley Act) with respect to such security by the
circulation or dissemination in the ordinary course of business
of information to the effect that the price of any such
security will or is likely to rise or fall because of market
operations of any one or more persons conducted for the purpose
of raising or depressing the price of such security.
``(4) If a dealer or broker, or the person selling or
offering for sale or purchasing or offering to purchase the
security or a security-based swap agreement (as defined in
section 206B of the Gramm-Leach-Bliley Act) with respect to
such security, to make, regarding any security registered on a
national securities exchange or any security-based swap
agreement (as defined in section 206B of the Gramm-Leach-Bliley
Act) with respect to such security, for the purpose of inducing
the purchase or sale of such security or such security-based
swap agreement, any statement which was at the time and in the
light of the circumstances under which it was made, false or
misleading with respect to any material fact, and which he knew
or had reasonable ground to believe was so false or misleading.
``(5) For a consideration, received directly or indirectly
from a dealer or broker, or other person selling or offering
for sale or purchasing or offering to purchase the security or
a security-based swap agreement (as defined in section 206B of
the Gramm-Leach-Bliley Act) with respect to such security, to
induce the purchase of any security registered on a national
securities exchange or any security-based swap agreement (as
defined in section 206B of the Gramm-Leach-Bliley Act) with
respect to such security by the circulation or dissemination of
information to the effect that the price of any such security
will or is likely to rise or fall because of the market
operations of any one or more persons conducted for the purpose
of raising or depressing the price of such security.''.
(c) Limitation.--Section 9 of the Securities Exchange Act
of 1934 is amended by adding at the end the following new
subsection:
``(i) The authority of the Commission under this section
with respect to security-based swap agreements shall be subject
to the restrictions and limitations of section 3A(b) of this
title.''.
(d) Regulations on the Use of Manipulative and Deceptive
Devices.--Section 10 of the Securities Exchange Act of 1934 (15
U.S.C. 78j) is amended--
(1) in subsection (b), by inserting ``or any
securities-based swap agreement (as defined in section
206B of the Gramm-Leach-Bliley Act),'' before ``any
manipulative or deceptive device''; and
(2) by adding at the end the following:
``Rules promulgated under subsection (b) that prohibit fraud,
manipulation, or insider trading (but not rules imposing or
specifying reporting or recordkeeping requirements, procedures,
or standards as prophylactic measures against fraud,
manipulation, or insider trading), and judicial precedents
decided under subsection (b) and rules promulgated thereunder
that prohibit fraud, manipulation, or insider trading, shall
apply to security-based swap agreements (as defined in section
206B of the Gramm-Leach-Bliley Act) to the same extent as they
apply to securities. Judicial precedents decided under section
17(a) of the Securities Act of 1933 and sections 9, 15, 16, 20,
and 21A of this title, and judicial precedents decided under
applicable rules promulgated under such sections, shall apply
to security-based swap agreements (as defined in section 206B
of the Gramm-Leach-Bliley Act) to the same extent as they apply
to securities.''.
(e) Broker, Dealer Anti-Fraud, Anti-Manipulation
Enforcement Authority.--Section 15(c)(1) of the Securities
Exchange Act of 1934 (15 U.S.C. 78o(c)(1)) is amended to read
as follows:
``(c)(1)(A) No broker or dealer shall make use of the mails
or any means or instrumentality of interstate commerce to
effect any transaction in, or to induce or attempt to induce
the purchase or sale of, any security (other than commercial
paper, bankers' acceptances, or commercial bills) otherwise
than on a national securities exchange of which it is a member,
or any security-based swap agreement (as defined in section
206B of the Gramm-Leach-Bliley Act), by means of any
manipulative, deceptive, or other fraudulent device or
contrivance.
``(B) No municipal securities dealer shall make use of the
mails or any means or instrumentality of interstate commerce to
effect any transaction in, or to induce or attempt to induce
the purchase or sale of, any municipal security or any
security-based swap agreement (as defined in section 206B of
the Gramm-Leach-Bliley Act) involving a municipal security by
means of any manipulative, deceptive, or other fraudulent
device or contrivance.
``(C) No government securities broker or government
securities dealer shall make use of the mails or any means or
instrumentality of interstate commerce to effect any
transaction in, or to induce or to attempt to induce the
purchase or sale of, any government security or any security-
based swap agreement (as defined in section 206B of the Gramm-
Leach-Bliley Act) involving a government security by means of
any manipulative, deceptive, or other fraudulent device or
contrivance.''.
(f) Limitation.--Section 15 of the Securities Exchange Act
of 1934 (15 U.S.C. 78o) is amended by adding at the end the
following new subsection:
``(i) The authority of the Commission under this section
with respect to security-based swap agreements (as defined in
section 206B of the Gramm-Leach-Bliley Act) shall be subject to
the restrictions and limitations of section 3A(b) of this
title.''.
(g) Anti-Insider Trading Enforcement Authority.--
Subsections (a) and (b) of section 16 (15 U.S.C. 78p(a), (b))
of the Securities Exchange of 1934 are amended to read as
follows:
``(a) Every person who is directly or indirectly the
beneficial owner of more than 10 per centum of any class of any
equity security (other than an exempted security) which is
registered pursuant to section 12 of this title, or who is a
director or an officer of the issuer of such security, shall
file, at the time of the registration of such security on a
national securities exchange or by the effective date of a
registration statement filed pursuant to section 12 (g) of this
title, or within ten days after he becomes such beneficial
owner, director, or officer, a statement with the Commission
(and, if such security is registered on a national securities
exchange, also with the exchange) of the amount of all equity
securities of such issuer of which he is the beneficial owner,
and within ten days after the close of each calendar month
thereafter, if there has been a change in such ownership or if
such person shall have purchased or sold a security-based swap
agreement (as defined in section 206B of the Gramm-Leach-Bliley
Act) involving such equity security during such month, shall
file with the Commission (and if such security is registered on
a national securities exchange, shall also file with the
exchange), a statement indicating his ownership at the close of
the calendar month and such changes in his ownership and such
purchases and sales of such security-based swap agreements as
have occurred during such calendar month.
``(b) For the purpose of preventing the unfair use of
information which may have been obtained by such beneficial
owner, director, or officer by reason of his relationship to
the issuer, any profit realized by him from any purchase and
sale, or any sale and purchase, of any equity security of such
issuer (other than an exempted security) or a security-based
swap agreement (as defined in section 206B of the Gramm-Leach-
Bliley Act) involving any such equity security within any
period of less than six months, unless such security or
security-based swap agreement was acquired in good faith in
connection with a debt previously contracted, shall inure to
and be recoverable by the issuer, irrespective of any intention
on the part of such beneficial owner, director, or officer in
entering into such transaction of holding the security or
security-based swap agreement purchased or of not repurchasing
the security or security-based swap agreement sold for a period
exceeding six months. Suit to recover such profit may be
instituted at law or in equity in any court of competent
jurisdiction by the issuer, or by the owner of any security of
the issuer in the name and in behalf of the issuer if the
issuer shall fail or refuse to bring such suit within sixty
days after request or shall fail diligently to prosecute the
same thereafter; but no such suit shall be brought more than
two years after the date such profit was realized. This
subsection shall not be construed to cover any transaction
where such beneficial owner was not such both at the time of
the purchase and sale, or the sale and purchase, of the
security or security-based swap agreement (as defined in
section 206B of the Gramm-Leach-Bliley Act) involved, or any
transaction or transactions which the Commission by rules and
regulations may exempt as not comprehended within the purpose
of this subsection.''.
(h) Limitation.--Section 16 of the Securities Exchange Act
of 1934 (15 U.S.C. 78p) is amended by adding at the end the
following new subsection:
``(g) The authority of the Commission under this section
with respect to security-based swap agreements (as defined in
section 206B of the Gramm-Leach-Bliley Act) shall be subject to
the restrictions and limitations of section 3A(b) of this
title.''.
(i) Material Nonpublic Information.--Section 20(d) of the
Securities Exchange Act of 1934 (15 U.S.C. 78t(d)) is amended
to read as follows:
``(d) Wherever communicating, or purchasing or selling a
security while in possession of, material nonpublic information
would violate, or result in liability to any purchaser or
seller of the security under any provisions of this title, or
any rule or regulation thereunder, such conduct in connection
with a purchase or sale of a put, call, straddle, option,
privilege or security-based swap agreement (as defined in
section 206B of the Gramm-Leach-Bliley Act) with respect to
such security or with respect to a group or index of securities
including such security, shall also violate and result in
comparable liability to any purchaser or seller of that
security under such provision, rule, or regulation.''.
(j) Limitation.--Section 20 of the Securities Exchange Act
of 1934 (15 U.S.C. 78t) is amended by adding at the end the
following new subsection:
``(f) The authority of the Commission under this section
with respect to security-based swap agreements (as defined in
section 206B of the Gramm-Leach-Bliley Act) shall be subject to
the restrictions and limitations of section 3A(b) of this
title.''.
(k) Civil Penalties.--Section 21A(a)(1) of the Securities
Exchange Act of 1934 (15 U.S.C. 78u-1)a)(1)) is amended by
inserting after ``purchasing or selling a security'' the
following: ``or security-based swap agreement (as defined in
section 206B of the Gramm-Leach-Bliley Act)''.
(l) Limitation.--Section 21A of the Securities Exchange Act
of 1934 (15 U.S.C. 78u-1) is amended by adding at the end the
following new subsection:
``(g) The authority of the Commission under this section
with respect to security-based swap agreements (as defined in
section 206B of the Gramm-Leach-Bliley Act) shall be subject to
the restrictions and limitations of section 3A(b) of this
title.''.
SEC. 304. SAVINGS PROVISIONS.
Nothing in this Act or the amendments made by this Act
shall be construed as finding or implying that any swap
agreement is or is not a security for any purpose under the
securities laws. Nothing in this Act or the amendments made by
this Act shall be construed as finding or implying that any
swap agreement is or is not a futures contract or commodity
option for any purpose under the Commodity Exchange Act.
TITLE IV--REGULATORY RESPONSIBILITY FOR BANK PRODUCTS
SEC. 401. SHORT TITLE.
This title may be cited as the ``Legal Certainty for Bank
Products Act of 2000''.
SEC. 402. DEFINITIONS.
(a) Bank.--In this title, the term ``bank'' means--
(1) any depository institution (as defined in
section 3(c) of the Federal Deposit Insurance Act);
(2) any foreign bank or branch or agency of a
foreign bank (each as defined in section 1(b) of the
International Banking Act of 1978);
(3) any Federal or State credit union (as defined
in section 101 of the Federal Credit Union Act);
(4) any corporation organized under section 25A of
the Federal Reserve Act;
(5) any corporation operating under section 25 of
the Federal Reserve Act;
(6) any trust company; or
(7) any subsidiary of any entity described in
paragraph (1) through (6) of this subsection, if the
subsidiary is regulated as if the subsidiary were part
of the entity and is not a broker or dealer (as such
terms are defined in section 3 of the Securities
Exchange Act of 1934) or a futures commission merchant
(as defined in section 1a(20) of the Commodity Exchange
Act).
(b) Identified Banking Product.--In this title, the term
``identified banking product'' shall have the same meaning as
in paragraphs (1) through (5) of section 206(a) of the Gramm-
Leach-Bliley Act, except that in applying such section for
purposes of this title--
(1) the term ``bank'' shall have the meaning given
in subsection (a) of this section; and
(2) the term ``qualified investor'' means eligible
contract participant (as defined in section 1a(12) of
the Commodity Exchange Act, as in effect on the date of
enactment of the Commodity Futures Modernization Act of
2000).
(c) Hybrid Instrument.--In this title, the term ``hybrid
instrument'' means an identified banking product not excluded
by section 403 of this Act, offered by a bank, having 1 or more
payments indexed to the value, level, or rate of, or providing
for the delivery of, 1 or more commodities (as defined in
section 1a(4) of the Commodity Exchange Act).
(d) Covered Swap Agreement.--In this title, the term
``covered swap agreement'' means a swap agreement (as defined
in section 206(b) of the Gramm-Leach-Bliley Act), including a
credit or equity swap, based on a commodity other than an
agricultural commodity enumerated in section 1a(4) of the
Commodity Exchange Act if--
(1) the swap agreement--
(A) is entered into only between persons
that are eligible contract participants (as
defined in section 1a(12) of the Commodity
Exchange Act, as in effect on the date of
enactment of the Commodity Futures
Modernization Act of 2000) at the time the
persons enter into the swap agreement; and
(B) is not entered into or executed on a
trading facility (as defined in section 1a(33)
of the Commodity Exchange Act); or
(2) the swap agreement--
(A) is entered into or executed on an
electronic trading facility (as defined in
section 1a(10) of the Commodity Exchange Act);
(B) is entered into on a principal-to-
principal basis between parties trading for
their own accounts or as described in section
1a(12)(B)(ii) of the Commodity Exchange Act;
(C) is entered into only between persons
that are eligible contract participants as
described in subparagraphs (A), (B)(ii), or (C)
of section 1a(12) of the Commodity Exchange
Act, as in effect on the date of enactment of
the Commodity Futures Modernization Act of
2000, at the time the persons enter into the
swap agreement; and
(D) is an agreement, contract or
transaction in an excluded commodity (as
defined in section 1a(13) of the Commodity
Exchange Act).
SEC. 403. EXCLUSION OF IDENTIFIED BANKING PRODUCTS COMMONLY OFFERED ON
OR BEFORE DECEMBER 5, 2000.
No provision of the Commodity Exchange Act shall apply to,
and the Commodity Futures Trading Commission shall not exercise
regulatory authority with respect to, an identified banking
product if--
(1) an appropriate banking agency certifies that
the product has been commonly offered, entered into, or
provided in the United States by any bank on or before
December 5, 2000, under applicable banking law; and
(2) the product was not prohibited by the Commodity
Exchange Act and not regulated by the Commodity Futures
Trading Commission as a contract of sale of a commodity
for future delivery (or an option on such a contract)
or an option on a commodity, on or before December 5,
2000.
SEC. 404. EXCLUSION OF CERTAIN IDENTIFIED BANKING PRODUCTS OFFERED BY
BANKS AFTER DECEMBER 5, 2000.
No provision of the Commodity Exchange Act shall apply to,
and the Commodity Futures Trading Commission shall not exercise
regulatory authority with respect to, an identified banking
product which had not been commonly offered, entered into, or
provided in the United States by any bank on or before December
5, 2000, under applicable banking law if--
(1) the product has no payment indexed to the
value, level, or rate of, and does not provide for the
delivery of, any commodity (as defined in section 1a(4)
of the Commodity Exchange Act); or
(2) the product or commodity is otherwise excluded
from the Commodity Exchange Act.
SEC. 405. EXCLUSION OF CERTAIN OTHER IDENTIFIED BANKING PRODUCTS.
(a) In General.--No provision of the Commodity Exchange Act
shall apply to, and the Commodity Futures Trading Commission
shall not exercise regulatory authority with respect to, a
banking product if the product is a hybrid instrument that is
predominantly a banking product under the predominance test set
forth in subsection (b).
(b) Predominance Test.--A hybrid instrument shall be
considered to be predominantly a banking product for purposes
of this section if--
(1) the issuer of the hybrid instrument receives
payment in full of the purchase price of the hybrid
instrument substantially contemporaneously with
delivery of the hybrid instrument;
(2) the purchaser or holder of the hybrid
instrument is not required to make under the terms of
the instrument, or any arrangement referred to in the
instrument, any payment to the issuer in addition to
the purchase price referred to in paragraph (1),
whether as margin, settlement payment, or otherwise
during the life of the hybrid instrument or at
maturity;
(3) the issuer of the hybrid instrument is not
subject by the terms of the instrument to mark-to-
market margining requirements; and
(4) the hybrid instrument is not marketed as a
contract of sale of a commodity for future delivery (or
option on such a contract) subject to the Commodity
Exchange Act.
(c) Mark-to-Market Margining Requirement.--For purposes of
subsection (b)(3), mark-to-market margining requirements shall
not include the obligation of an issuer of a secured debt
instrument to increase the amount of collateral held in pledge
for the benefit of the purchaser of the secured debt instrument
to secure the repayment obligations of the issuer under the
secured debt instrument.
SEC. 406. ADMINISTRATION OF THE PREDOMINANCE TEST.
(a) In General.--No provision of the Commodity Exchange Act
shall apply to, and the Commodity Futures Trading Commission
shall not regulate, a hybrid instrument, unless the Commission
determines, by or under a rule issued in accordance with this
section, that--
(1) the action is necessary and appropriate in the
public interest;
(2) the action is consistent with the Commodity
Exchange Act and the purposes of the Commodity Exchange
Act; and
(3) the hybrid instrument is not predominantly a
banking product under the predominance test set forth
in section 405(b) of this Act.
(b) Consultation.--Before commencing a rulemaking or making
a determination pursuant to a rule issued under this title, the
Commodity Futures Trading Commission shall consult with and
seek the concurrence of the Board of Governors of the Federal
Reserve System concerning--
(1) the nature of the hybrid instrument; and
(2) the history, purpose, extent, and
appropriateness of the regulation of the hybrid
instrument under the Commodity Exchange Act and under
appropriate banking laws.
(c) Objection to Commission Regulation.--
(1) Filing of petition for review.--The Board of
Governors of the Federal Reserve System may obtain
review of any rule or determination referred to in
subsection (a) in the United States Court of Appeals
for the District of Columbia Circuit by filing in the
court, not later than 60 days after the date of
publication of the rule or determination, a written
petition requesting that the rule or determination be
set aside. Any proceeding to challenge any such rule or
determination shall be expedited by the court.
(2) Transmittal of petition and record.--A copy of
a petition described in paragraph (1) shall be
transmitted as soon as possible by the Clerk of the
court to an officer or employee of the Commodity
Futures Trading Commission designated for that purpose.
Upon receipt of the petition, the Commission shall file
with the court the rule or determination under review
and any documents referred to therein, and any other
relevant materials prescribed by the court.
(3) Exclusive jurisdiction.--On the date of the
filing of a petition under paragraph (1), the court
shall have jurisdiction, which shall become exclusive
on the filing of the materials set forth in paragraph
(2), to affirm and enforce or to set aside the rule or
determination at issue.
(4) Standard of review.--The court shall determine
to affirm and enforce or set aside a rule or
determination of the Commodity Futures Trading
Commission under this section, based on the
determination of the court as to whether--
(A) the subject product is predominantly a
banking product; and
(B) making the provision or provisions of
the Commodity Exchange Act at issue applicable
to the subject instrument is appropriate in
light of the history, purpose, and extent of
regulation under such Act, this title, and
under the appropriate banking laws, giving
deference neither to the views of the Commodity
Futures Trading Commission nor the Board of
Governors of the Federal Reserve System.
(5) Judicial stay.--The filing of a petition by the
Board pursuant to paragraph (1) shall operate as a
judicial stay, until the date on which the
determination of the court is final (including any
appeal of the determination).
(6) Other authority to challenge.--Any aggrieved
party may seek judicial review pursuant to section 6(c)
of the Commodity Exchange Act of a determination or
rulemaking by the Commodity Futures Trading Commission
under this section.
SEC. 407. EXCLUSION OF COVERED SWAP AGREEMENTS.
No provision of the Commodity Exchange Act (other than
section 5b of such Act with respect to the clearing of covered
swap agreements) shall apply to, and the Commodity Futures
Trading Commission shall not exercise regulatory authority with
respect to, a covered swap agreement offered, entered into, or
provided by a bank.
SEC. 408. CONTRACT ENFORCEMENT.
(a) Hybrid Instruments.--No hybrid instrument shall be
void, voidable, or unenforceable, and no party to a hybrid
instrument shall be entitled to rescind, or recover any payment
made with respect to, a hybrid instrument under any provision
of Federal or State law, based solely on the failure of the
hybrid instrument to satisfy the predominance test set forth in
section 405(b) of this Act or to comply with the terms or
conditions of an exemption or exclusion from any provision of
the Commodity Exchange Act or any regulation of the Commodity
Futures Trading Commission.
(b) Covered Swap Agreements.--No covered swap agreement
shall be void, voidable, or unenforceable, and no party to a
covered swap agreement shall be entitled to rescind, or recover
any payment made with respect to, a covered swap agreement
under any provision of Federal or State law, based solely on
the failure of the covered swap agreement to comply with the
terms or conditions of an exemption or exclusion from any
provision of the Commodity Exchange Act or any regulation of
the Commodity Futures Trading Commission.
(c) Preemption.--This title shall supersede and preempt the
application of any State or local law that prohibits or
regulates gaming or the operation of bucket shops (other than
antifraud provisions of general applicability) in the case of--
(1) a hybrid instrument that is predominantly a
banking product; or
(2) a covered swap agreement.
MEDICARE, MEDICAID, AND SCHIP BENEFITS IMPROVEMENT AND PROTECTION ACT
OF 2000
The conference agreement would enact the provisions of
H.R. 5661, as introduced on December 14, 2000. The text of that
bill follows:
A BILL To amend titles XVIII, XIX, and XXI of the Social Security Act
to provide benefits improvements and beneficiary protections in the
Medicare and Medicaid Programs and the State child health insurance
program (SCHIP), as revised by the Balanced Budget Act of 1997 and the
Medicare, Medicaid, and SCHIP Balanced Budget Refinement Act of 1999,
and for other purposes.
Be it enacted by the Senate and House of Representatives
of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; AMENDMENTS TO SOCIAL SECURITY ACT; REFERENCES
TO OTHER ACTS; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Medicare,
Medicaid, and SCHIP Benefits Improvement and Protection Act of
2000''.
(b) Amendments to Social Security Act.--Except as otherwise
specifically provided, whenever in this Act an amendment is
expressed in terms of an amendment to or repeal of a section or
other provision, the reference shall be considered to be made
to that section or other provision of the Social Security Act.
(c) References to Other Acts.--In this Act:
(1) Balanced budget act of 1997.--The term ``BBA''
means the Balanced Budget Act of 1997 (Public Law 105-
33; 111 Stat. 251).
(2) Medicare, medicaid, and schip balanced budget
refinement act of 1999.--The term ``BBRA'' means the
Medicare, Medicaid, and SCHIP Balanced Budget
Refinement Act of 1999 (Appendix F, 113 Stat. 1501A-
321), as enacted into law by section 1000(a)(6) of
Public Law 106-113.
(d) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; amendments to Social Security Act; references to
other Acts; table of contents.
TITLE I--MEDICARE BENEFICIARY IMPROVEMENTS
Subtitle A--Improved Preventive Benefits
Sec. 101. Coverage of biennial screening pap smear and pelvic exams.
Sec. 102. Coverage of screening for glaucoma.
Sec. 103. Coverage of screening colonoscopy for average risk
individuals.
Sec. 104. Modernization of screening mammography benefit.
Sec. 105. Coverage of medical nutrition therapy services for
beneficiaries with diabetes or a renal disease.
Subtitle B--Other Beneficiary Improvements
Sec. 111. Acceleration of reduction of beneficiary copayment for
hospital outpatient department services.
Sec. 112. Preservation of coverage of drugs and biologicals under part B
of the medicare program.
Sec. 113. Elimination of time limitation on medicare benefits for
immunosuppressive drugs.
Sec. 114. Imposition of billing limits on drugs.
Sec. 115. Waiver of 24-month waiting period for medicare coverage of
individuals disabled with amyotrophic lateral sclerosis (ALS).
Subtitle C--Demonstration Projects and Studies
Sec. 121. Demonstration project for disease management for severely
chronically ill medicare beneficiaries.
Sec. 122. Cancer prevention and treatment demonstration for ethnic and
racial minorities.
Sec. 123. Study on medicare coverage of routine thyroid screening.
Sec. 124. MedPAC study on consumer coalitions.
Sec. 125. Study on limitation on State payment for medicare cost-sharing
affecting access to services for qualified medicare
beneficiaries.
Sec. 126. Studies on preventive interventions in primary care for older
Americans.
Sec. 127. MedPAC study and report on medicare coverage of cardiac and
pulmonary rehabilitation therapy services.
Sec. 128. Lifestyle modification program demonstration.
TITLE II--RURAL HEALTH CARE IMPROVEMENTS
Subtitle A--Critical Access Hospital Provisions
Sec. 201. Clarification of no beneficiary cost-sharing for clinical
diagnostic laboratory tests furnished by critical access
hospitals.
Sec. 202. Assistance with fee schedule payment for professional services
under all-inclusive rate.
Sec. 203. Exemption of critical access hospital swing beds from SNF PPS.
Sec. 204. Payment in critical access hospitals for emergency room on-
call physicians.
Sec. 205. Treatment of ambulance services furnished by certain critical
access hospitals.
Sec. 206. GAO study on certain eligibility requirements for critical
access hospitals.
Subtitle B--Other Rural Hospitals Provisions
Sec. 211. Treatment of rural disproportionate share hospitals.
Sec. 212. Option to base eligibility for medicare dependent, small rural
hospital program on discharges during 2 of the 3 most recently
audited cost reporting periods.
Sec. 213. Extension of option to use rebased target amounts to all sole
community hospitals.
Sec. 214. MedPAC analysis of impact of volume on per unit cost of rural
hospitals with psychiatric units.
Subtitle C--Other Rural Provisions
Sec. 221. Assistance for providers of ambulance services in rural areas.
Sec. 222. Payment for certain physician assistant services.
Sec. 223. Revision of medicare reimbursement for telehealth services.
Sec. 224. Expanding access to rural health clinics.
Sec. 225. MedPAC study on low-volume, isolated rural health care
providers.
TITLE III--PROVISIONS RELATING TO PART A
Subtitle A--Inpatient Hospital Services
Sec. 301. Revision of acute care hospital payment update for 2001.
Sec. 302. Additional modification in transition for indirect medical
education (IME) percentage adjustment.
Sec. 303. Decrease in reductions for disproportionate share hospital
(DSH) payments.
Sec. 304. Wage index improvements.
Sec. 305. Payment for inpatient services of rehabilitation hospitals.
Sec. 306. Payment for inpatient services of psychiatric hospitals.
Sec. 307. Payment for inpatient services of long-term care hospitals.
Subtitle B--Adjustments to PPS Payments for Skilled Nursing Facilities
Sec. 311. Elimination of reduction in skilled nursing facility (SNF)
market basket update in 2001.
Sec. 312. Increase in nursing component of PPS Federal rate.
Sec. 313. Application of SNF consolidated billing requirement limited to
part A covered stays.
Sec. 314. Adjustment of rehabilitation RUGs to correct anomaly in
payment rates.
Sec. 315. Establishment of process for geographic reclassification.
Subtitle C--Hospice Care
Sec. 321. 5 percent increase in payment base.
Sec. 322. Clarification of physician certification.
Sec. 323. MedPAC report on access to, and use of, hospice benefit.
Subtitle D--Other Provisions
Sec. 331. Relief from medicare part A late enrollment penalty for group
buy-in for State and local retirees.
TITLE IV--PROVISIONS RELATING TO PART B
Subtitle A--Hospital Outpatient Services
Sec. 401. Revision of hospital outpatient PPS payment update.
Sec. 402. Clarifying process and standards for determining eligibility
of devices for pass-through payments under hospital outpatient
PPS.
Sec. 403. Application of OPD PPS transitional corridor payments to
certain hospitals that did not submit a 1996 cost report.
Sec. 404. Application of rules for determining provider-based status for
certain entities.
Sec. 405. Treatment of children's hospitals under prospective payment
system.
Sec. 406. Inclusion of temperature monitored cryoablation in
transitional pass-through for certain medical devices, drugs,
and biologicals under OPD PPS.
Subtitle B--Provisions Relating to Physicians' Services
Sec. 411. GAO studies relating to physicians' services.
Sec. 412. Physician group practice demonstration.
Sec. 413. Study on enrollment procedures for groups that retain
independent contractor physicians.
Subtitle C--Other Services
Sec. 421. 1-year extension of moratorium on therapy caps; report on
standards for supervision of physical therapy assistants.
Sec. 422. Update in renal dialysis composite rate.
Sec. 423. Payment for ambulance services.
Sec. 424. Ambulatory surgical centers.
Sec. 425. Full update for durable medical equipment.
Sec. 426. Full update for orthotics and prosthetics.
Sec. 427. Establishment of special payment provisions and requirements
for prosthetics and certain custom-fabricated orthotic items.
Sec. 428. Replacement of prosthetic devices and parts.
Sec. 429. Revised part B payment for drugs and biologicals and related
services.
Sec. 430. Contrast enhanced diagnostic procedures under hospital
prospective payment system.
Sec. 431. Qualifications for community mental health centers.
Sec. 432. Payment of physician and nonphysician services in certain
Indian providers.
Sec. 433. GAO study on coverage of surgical first assisting services of
certified registered nurse first assistants.
Sec. 434. MedPAC study and report on medicare reimbursement for services
provided by certain providers.
Sec. 435. MedPAC study and report on medicare coverage of services
provided by certain nonphysician providers.
Sec. 436. GAO study and report on the costs of emergency and medical
transportation services.
Sec. 437. GAO studies and reports on medicare payments.
Sec. 438. MedPAC study on access to outpatient pain management services.
TITLE V--PROVISIONS RELATING TO PARTS A AND B
Subtitle A--Home Health Services
Sec. 501. 1-year additional delay in application of 15 percent reduction
on payment limits for home health services.
Sec. 502. Restoration of full home health market basket update for home
health services for fiscal year 2001.
Sec. 503. Temporary two-month periodic interim payment.
Sec. 504. Use of telehealth in delivery of home health services.
Sec. 505. Study on costs to home health agencies of purchasing
nonroutine medical supplies.
Sec. 506. Treatment of branch offices; GAO study on supervision of home
health care provided in isolated rural areas.
Sec. 507. Clarification of the homebound definition under the medicare
home health benefit.
Sec. 508. Temporary increase for home health services furnished in a
rural area.
Subtitle B--Direct Graduate Medical Education
Sec. 511. Increase in floor for direct graduate medical education
payments.
Sec. 512. Change in distribution formula for Medicare+Choice-related
nursing and allied health education costs.
Subtitle C--Changes in Medicare Coverage and Appeals Process
Sec. 521. Revisions to medicare appeals process.
Sec. 522. Revisions to medicare coverage process.
Subtitle D--Improving Access to New Technologies
Sec. 531. Reimbursement improvements for new clinical laboratory tests
and durable medical equipment.
Sec. 532. Retention of HCPCS level III codes.
Sec. 533. Recognition of new medical technologies under inpatient
hospital PPS.
Subtitle E--Other Provisions
Sec. 541. Increase in reimbursement for bad debt.
Sec. 542. Treatment of certain physician pathology services under
medicare.
Sec. 543. Extension of advisory opinion authority.
Sec. 544. Change in annual MedPAC reporting.
Sec. 545. Development of patient assessment instruments.
Sec. 546. GAO report on impact of the Emergency Medical Treatment and
Active Labor Act (EMTALA) on hospital emergency departments.
Sec. 547. Clarification of application of temporary payment increases
for 2001.
TITLE VI--PROVISIONS RELATING TO PART C (MEDICARE+CHOICE PROGRAM) AND
OTHER MEDICARE MANAGED CARE PROVISIONS
Subtitle A--Medicare+Choice Payment Reforms
Sec. 601. Increase in minimum payment amount.
Sec. 602. Increase in minimum percentage increase.
Sec. 603. Phase-in of risk adjustment.
Sec. 604. Transition to revised Medicare+Choice payment rates.
Sec. 605. Revision of payment rates for ESRD patients enrolled in
Medicare+Choice plans.
Sec. 606. Permitting premium reductions as additional benefits under
Medicare+Choice plans.
Sec. 607. Full implementation of risk adjustment for congestive heart
failure enrollees for 2001.
Sec. 608. Expansion of application of Medicare+Choice new entry bonus.
Sec. 609. Report on inclusion of certain costs of the Department of
Veterans Affairs and military facility services in calculating
Medicare+Choice payment rates.
Subtitle B--Other Medicare+Choice Reforms
Sec. 611. Payment of additional amounts for new benefits covered during
a contract term.
Sec. 612. Restriction on implementation of significant new regulatory
requirements midyear.
Sec. 613. Timely approval of marketing material that follows model
marketing language.
Sec. 614. Avoiding duplicative regulation.
Sec. 615. Election of uniform local coverage policy for Medicare+Choice
plan covering multiple localities.
Sec. 616. Eliminating health disparities in Medicare+Choice program.
Sec. 617. Medicare+Choice program compatibility with employer or union
group health plans.
Sec. 618. Special medigap enrollment antidiscrimination provision for
certain beneficiaries.
Sec. 619. Restoring effective date of elections and changes of elections
of Medicare+Choice plans.
Sec. 620. Permitting ESRD beneficiaries to enroll in another
Medicare+Choice plan if the plan in which they are enrolled is
terminated.
Sec. 621. Providing choice for skilled nursing facility services under
the Medicare+Choice program.
Sec. 622. Providing for accountability of Medicare+Choice plans.
Sec. 623. Increased civil money penalty for Medicare+Choice
organizations that terminate contracts mid-year.
Subtitle C--Other Managed Care Reforms
Sec. 631. 1-year extension of social health maintenance organization
(SHMO) demonstration project.
Sec. 632. Revised terms and conditions for extension of medicare
community nursing organization (CNO) demonstration project.
Sec. 633. Extension of medicare municipal health services demonstration
projects.
Sec. 634. Service area expansion for medicare cost contracts during
transition period.
TITLE VII--MEDICAID
Sec. 701. DSH payments.
Sec. 702. New prospective payment system for Federally-qualified health
centers and rural health clinics.
Sec. 703. Streamlined approval of continued State-wide section 1115
medicaid waivers.
Sec. 704. Medicaid county-organized health systems.
Sec. 705. Deadline for issuance of final regulation relating to medicaid
upper payment limits.
Sec. 706. Alaska FMAP.
Sec. 707. 1-year extension of welfare-to-work transition.
Sec. 708. Additional entities qualified to determine medicaid
presumptive eligibility for low-income children.
Sec. 709. Development of uniform QMB/SLMB application form.
Sec. 710. Technical corrections.
TITLE VIII--STATE CHILDREN'S HEALTH INSURANCE PROGRAM
Sec. 801. Special rule for redistribution and availability of unused
fiscal year 1998 and 1999 SCHIP allotments.
Sec. 802. Authority to pay medicaid expansion SCHIP costs from title XXI
appropriation.
Sec. 803. Application of medicaid child presumptive eligibility
provisions.
TITLE IX--OTHER PROVISIONS
Subtitle A--PACE Program
Sec. 901. Extension of transition for current waivers.
Sec. 902. Continuing of certain operating arrangements permitted.
Sec. 903. Flexibility in exercising waiver authority.
Subtitle B--Outreach to Eligible Low-Income Medicare Beneficiaries
Sec. 911. Outreach on availability of medicare cost-sharing assistance
to eligible low-income medicare beneficiaries.
Subtitle C--Maternal and Child Health Block Grant
Sec. 921. Increase in authorization of appropriations for the maternal
and child health services block grant.
Subtitle D--Diabetes
Sec. 931. Increase in appropriations for special diabetes programs for
type I diabetes and Indians.
Sec. 932. Appropriations for Ricky Ray Hemophilia Relief Fund.
Subtitle E--Information on Nursing Facility Staffing
Sec. 941. Posting of information on nursing facility staffing.
Subtitle F--Adjustment of Multiemployer Plan Benefits Guaranteed
Sec. 951. Multiemployer plan benefits guaranteed.
TITLE I--MEDICARE BENEFICIARY IMPROVEMENTS
Subtitle A--Improved Preventive Benefits
SEC. 101. COVERAGE OF BIENNIAL SCREENING PAP SMEAR AND PELVIC EXAMS.
(a) In General.--
(1) Biennial screening pap smear.--Section
1861(nn)(1) (42 U.S.C. 1395x(nn)(1)) is amended by
striking ``3 years'' and inserting ``2 years''.
(2) Biennial screening pelvic exam.--Section
1861(nn)(2) (42 U.S.C. 1395x(nn)(2)) is amended by
striking ``3 years'' and inserting ``2 years''.
(b) Effective Date.--The amendments made by subsection (a)
shall apply to items and services furnished on or after July 1,
2001.
SEC. 102. COVERAGE OF SCREENING FOR GLAUCOMA.
(a) Coverage.--Section 1861(s)(2) (42 U.S.C. 1395x(s)(2))
is amended--
(1) by striking ``and'' at the end of subparagraph
(S);
(2) by inserting ``and'' at the end of subparagraph
(T); and
(3) by adding at the end the following:
``(U) screening for glaucoma (as defined in
subsection (uu)) for individuals determined to be at
high risk for glaucoma, individuals with a family
history of glaucoma and individuals with diabetes;''.
(b) Services Described.--Section 1861 (42 U.S.C. 1395x) is
amended by adding at the end the following new subsection:
``Screening for Glaucoma
``(uu) The term `screening for glaucoma' means a dilated
eye examination with an intraocular pressure measurement, and a
direct ophthalmoscopy or a slit-lamp biomicroscopic examination
for the early detection of glaucoma which is furnished by or
under the direct supervision of an optometrist or
ophthalmologist who is legally authorized to furnish such
services under State law (or the State regulatory mechanism
provided by State law) of the State in which the services are
furnished, as would otherwise be covered if furnished by a
physician or as an incident to a physician's professional
service, if the individual involved has not had such an
examination in the preceding year.''.
(c) Conforming Amendment.--Section 1862(a)(1)(F) (42 U.S.C.
1395y(a)(1)(F)) is amended--
(1) by striking ``and,''; and
(2) by adding at the end the following: ``and, in
the case of screening for glaucoma, which is performed
more frequently than is provided under section
1861(uu),''.
(d) Effective Date.--The amendments made by this section
shall apply to services furnished on or after January 1, 2002.
SEC. 103. COVERAGE OF SCREENING COLONOSCOPY FOR AVERAGE RISK
INDIVIDUALS.
(a) In General.--Section 1861(pp) (42 U.S.C. 1395x(pp)) is
amended--
(1) in paragraph (1)(C), by striking ``In the case
of an individual at high risk for colorectal cancer,
screening colonoscopy'' and inserting ``Screening
colonoscopy''; and
(2) in paragraph (2), by striking ``In paragraph
(1)(C), an'' and inserting ``An''.
(b) Frequency Limits for Screening Colonoscopy.--Section
1834(d) (42 U.S.C. 1395m(d)) is amended--
(1) in paragraph (2)(E)(ii), by inserting before
the period at the end the following: ``or, in the case
of an individual who is not at high risk for colorectal
cancer, if the procedure is performed within the 119
months after a previous screening colonoscopy''; and
(2) in paragraph (3)--
(A) in the heading by striking ``for
individuals at high risk for colorectal
cancer'';
(B) in subparagraph (A), by striking ``for
individuals at high risk for colorectal cancer
(as defined in section 1861(pp)(2))''; and
(C) in subparagraph (E), by inserting
before the period at the end the following:
``or for other individuals if the procedure is
performed within the 119 months after a
previous screening colonoscopy or within 47
months after a previous screening flexible
sigmoidoscopy''.
(c) Effective Date.--The amendments made by this section
shall apply to colorectal cancer screening services provided on
or after July 1, 2001.
SEC. 104. MODERNIZATION OF SCREENING MAMMOGRAPHY BENEFIT.
(a) Inclusion in Physician Fee Schedule.--Section
1848(j)(3) (42 U.S.C. 1395w-4(j)(3)) is amended by inserting
``(13),'' after ``(4),''.
(b) Conforming Amendment.--Section 1834(c) (42 U.S.C.
1395m(c)) is amended to read as follows:
``(c) Payment and Standards for Screening Mammography.--
``(1) In general.--With respect to expenses
incurred for screening mammography (as defined in
section 1861(jj)), payment may be made only--
``(A) for screening mammography conducted
consistent with the frequency permitted under
paragraph (2); and
``(B) if the screening mammography is
conducted by a facility that has a certificate
(or provisional certificate) issued under
section 354 of the Public Health Service Act.
``(2) Frequency covered.--
``(A) In general.--Subject to revision by
the Secretary under subparagraph (B)--
``(i) no payment may be made under
this part for screening mammography
performed on a woman under 35 years of
age;
``(ii) payment may be made under
this part for only one screening
mammography performed on a woman over
34 years of age, but under 40 years of
age; and
``(iii) in the case of a woman over
39 years of age, payment may not be
made under this part for screening
mammography performed within 11 months
following the month in which a previous
screening mammography was performed.
``(B) Revision of frequency.--
``(i) Review.--The Secretary, in
consultation with the Director of the
National Cancer Institute, shall review
periodically the appropriate frequency
for performing screening mammography,
based on age and such other factors as
the Secretary believes to be pertinent.
``(ii) Revision of frequency.--The
Secretary, taking into consideration
the review made under clause (i), may
revise from time to time the frequency
with which screening mammography may be
paid for under this subsection.''.
(c) Effective Date.--The amendments made by subsections (a)
and (b) shall apply with respect to screening mammographies
furnished on or after January 1, 2002.
(d) Payment for New Technologies.--
(1) Tests furnished in 2001.--
(A) Screening.--For a screening mammography
(as defined in section 1861(jj) of the Social
Security Act (42 U.S.C. 1395x(jj))) furnished
during the period beginning on April 1, 2001,
and ending on December 31, 2001, that uses a
new technology, payment for such screening
mammography shall be made as follows:
(i) In the case of a technology
which directly takes a digital image
(without involving film), in an amount
equal to 150 percent of the amount of
payment under section 1848 of such Act
(42 U.S.C. 1395w-4) for a bilateral
diagnostic mammography (under HCPCS
code 76091) for such year.
(ii) In the case of a technology
which allows conversion of a standard
film mammogram into a digital image and
subsequently analyzes such resulting
image with software to identify
possible problem areas, in an amount
equal to the limit that would otherwise
be applied under section 1834(c)(3) of
such Act (42 U.S.C. 1395m(c)(3)) for
2001, increased by $15.
(B) Bilateral diagnostic mammography.--For
a bilateral diagnostic mammography furnished
during the period beginning on April 1, 2001,
and ending on December 31, 2001, that uses a
new technology described in subparagraph (A),
payment for such mammography shall be the
amount of payment provided for under such
subparagraph.
(C) Allocation of amounts.--The Secretary
shall provide for an appropriate allocation of
the amounts under subparagraphs (A) and (B)
between the professional and technical
components.
(D) Implementation of provision.--The
Secretary of Health and Human Services may
implement the provisions of this paragraph by
program memorandum or otherwise.
(2) Consideration of new hcpcs code for new
technologies after 2001.--The Secretary shall
determine, for such mammographies performed after 2001,
whether the assignment of a new HCPCS code is
appropriate for mammography that uses a new technology.
If the Secretary determines that a new code is
appropriate for such mammography, the Secretary shall
provide for such new code for such tests furnished
after 2001.
(3) New technology described.--For purposes of this
subsection, a new technology with respect to a
mammography is an advance in technology with respect to
the test or equipment that results in the following:
(A) A significant increase or decrease in
the resources used in the test or in the
manufacture of the equipment.
(B) A significant improvement in the
performance of the test or equipment.
(C) A significant advance in medical
technology that is expected to significantly
improve the treatment of medicare
beneficiaries.
(4) HCPCS code defined.--The term ``HCPCS code''
means a code under the Health Care Financing
Administration Common Procedure Coding System (HCPCS).
SEC. 105. COVERAGE OF MEDICAL NUTRITION THERAPY SERVICES FOR
BENEFICIARIES WITH DIABETES OR A RENAL DISEASE.
(a) Coverage.--Section 1861(s)(2) (42 U.S.C. 1395x(s)(2)),
as amended by section 102(a), is amended--
(1) in subparagraph (T), by striking ``and'' at the
end;
(2) in subparagraph (U), by inserting ``and'' at
the end; and
(3) by adding at the end the following new
subparagraph:
``(V) medical nutrition therapy services (as
defined in subsection (vv)(1)) in the case of a
beneficiary with diabetes or a renal disease who--
``(i) has not received diabetes outpatient
self-management training services within a time
period determined by the Secretary;
``(ii) is not receiving maintenance
dialysis for which payment is made under
section 1881; and
``(iii) meets such other criteria
determined by the Secretary after consideration
of protocols established by dietitian or
nutrition professional organizations;''.
(b) Services Described.--Section 1861 (42 U.S.C. 1395x), as
amended by section 102(b), is amended by adding at the end the
following:
``Medical Nutrition Therapy Services; Registered Dietitian or Nutrition
Professional
``(vv)(1) The term `medical nutrition therapy services'
means nutritional diagnostic, therapy, and counseling services
for the purpose of disease management which are furnished by a
registered dietitian or nutrition professional (as defined in
paragraph (2)) pursuant to a referral by a physician (as
defined in subsection (r)(1)).
``(2) Subject to paragraph (3), the term `registered
dietitian or nutrition professional' means an individual who--
``(A) holds a baccalaureate or higher degree
granted by a regionally accredited college or
university in the United States (or an equivalent
foreign degree) with completion of the academic
requirements of a program in nutrition or dietetics, as
accredited by an appropriate national accreditation
organization recognized by the Secretary for this
purpose;
``(B) has completed at least 900 hours of
supervised dietetics practice under the supervision of
a registered dietitian or nutrition professional; and
``(C)(i) is licensed or certified as a dietitian or
nutrition professional by the State in which the
services are performed; or
``(ii) in the case of an individual in a State that
does not provide for such licensure or certification,
meets such other criteria as the Secretary establishes.
``(3) Subparagraphs (A) and (B) of paragraph (2) shall not
apply in the case of an individual who, as of the date of the
enactment of this subsection, is licensed or certified as a
dietitian or nutrition professional by the State in which
medical nutrition therapy services are performed.''.
(c) Payment.--Section 1833(a)(1) (42 U.S.C. 1395l(a)(1)) is
amended--
(1) by striking ``and'' before ``(S)''; and
(2) by inserting before the semicolon at the end
the following: ``, and (T) with respect to medical
nutrition therapy services (as defined in section
1861(vv)), the amount paid shall be 80 percent of the
lesser of the actual charge for the services or 85
percent of the amount determined under the fee schedule
established under section 1848(b) for the same services
if furnished by a physician''.
(d) Application of Limits on Billing.--Section
1842(b)(18)(C) (42 U.S.C. 1395u(b)(18)(C)) is amended by adding
at the end the following new clause:
``(vi) A registered dietitian or nutrition
professional.''.
(e) Effective Date.--The amendments made by this section
shall apply to services furnished on or after January 1, 2002.
(f) Study.--Not later than July 1, 2003, the Secretary of
Health and Human Services shall submit to Congress a report
that contains recommendations with respect to the expansion to
other medicare beneficiary populations of the medical nutrition
therapy services benefit (furnished under the amendments made
by this section).
Subtitle B--Other Beneficiary Improvements
SEC. 111. ACCELERATION OF REDUCTION OF BENEFICIARY COPAYMENT FOR
HOSPITAL OUTPATIENT DEPARTMENT SERVICES.
(a) Reducing the Upper Limit on Beneficiary Copayment.--
(1) In general.--Section 1833(t)(8)(C) (42 U.S.C.
1395l(t)(8)(C)) is amended to read as follows:
``(C) Limitation on copayment amount.--
``(i) To inpatient hospital
deductible amount.--In no case shall
the copayment amount for a procedure
performed in a year exceed the amount
of the inpatient hospital deductible
established under section 1813(b) for
that year.
``(ii) To specified percentage.--
The Secretary shall reduce the national
unadjusted copayment amount for a
covered OPD service (or group of such
services) furnished in a year in a
manner so that the effective copayment
rate (determined on a national
unadjusted basis) for that service in
the year does not exceed the following
percentage:
``(I) For procedures
performed in 2001, on or after
April 1, 2001, 57 percent.
``(II) For procedures
performed in 2002 or 2003, 55
percent.
``(III) For procedures
performed in 2004, 50 percent.
``(IV) For procedures
performed in 2005, 45 percent.
``(V) For procedures
performed in 2006 and
thereafter, 40 percent.''.
(2) Effective date.--The amendment made by
paragraph (1) shall apply with respect to services
furnished on or after April 1, 2001.
(b) Construction Regarding Limiting Increases in Cost-
Sharing.--Nothing in this Act or the Social Security Act shall
be construed as preventing a hospital from waiving the amount
of any coinsurance for outpatient hospital services under the
medicare program under title XVIII of the Social Security Act
that may have been increased as a result of the implementation
of the prospective payment system under section 1833(t) of the
Social Security Act (42 U.S.C. 1395l(t)).
(c) GAO Study of Reduction in Medigap Premium Levels
Resulting From Reductions in Coinsurance.--The Comptroller
General of the United States shall work, in concert with the
National Association of Insurance Commissioners, to evaluate
the extent to which the premium levels for medicare
supplemental policies reflect the reductions in coinsurance
resulting from the amendment made by subsection (a). Not later
than April 1, 2004, the Comptroller General shall submit to
Congress a report on such evaluation and the extent to which
the reductions in beneficiary coinsurance effected by such
amendment have resulted in actual savings to medicare
beneficiaries.
SEC. 112. PRESERVATION OF COVERAGE OF DRUGS AND BIOLOGICALS UNDER PART
B OF THE MEDICARE PROGRAM.
(a) In General.--Section 1861(s)(2) (42 U.S.C. 1395x(s)(2))
is amended, in each of subparagraphs (A) and (B), by striking
``(including drugs and biologicals which cannot, as determined
in accordance with regulations, be self-administered)'' and
inserting ``(including drugs and biologicals which are not
usually self-administered by the patient)''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to drugs and biologicals administered on or after
the date of the enactment of this Act.
SEC. 113. ELIMINATION OF TIME LIMITATION ON MEDICARE BENEFITS FOR
IMMUNOSUPPRESSIVE DRUGS.
(a) In General.--Section 1861(s)(2)(J) (42 U.S.C.
1395x(s)(2)(J)) is amended by striking ``, but only'' and all
that follows up to the semicolon at the end.
(b) Conforming Amendments.--
(1) Extended coverage.--Section 1832 (42 U.S.C.
1395k) is amended--
(A) by striking subsection (b); and
(B) by redesignating subsection (c) as
subsection (b).
(2) Pass-through; report.--Section 227 of BBRA is
amended by striking subsection (d).
(c) Effective Date.--The amendment made by subsection (a)
shall apply to drugs furnished on or after the date of the
enactment of this Act.
SEC. 114. IMPOSITION OF BILLING LIMITS ON DRUGS.
(a) In General.--Section 1842(o) (42 U.S.C. 1395u(o)) is
amended by adding at the end the following new paragraph:
``(3)(A) Payment for a charge for any drug or biological
for which payment may be made under this part may be made only
on an assignment-related basis.
``(B) The provisions of subsection (b)(18)(B) shall apply
to charges for such drugs or biologicals in the same manner as
they apply to services furnished by a practitioner described in
subsection (b)(18)(C).''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to items furnished on or after January 1, 2001.
SEC. 115. WAIVER OF 24-MONTH WAITING PERIOD FOR MEDICARE COVERAGE OF
INDIVIDUALS DISABLED WITH AMYOTROPHIC LATERAL
SCLEROSIS (ALS).
(a) In General.--Section 226 (42 U.S.C. 426) is amended--
(1) by redesignating subsection (h) as subsection
(j) and by moving such subsection to the end of the
section; and
(2) by inserting after subsection (g) the following
new subsection:
``(h) For purposes of applying this section in the case of
an individual medically determined to have amyotrophic lateral
sclerosis (ALS), the following special rules apply:
``(1) Subsection (b) shall be applied as if there
were no requirement for any entitlement to benefits, or
status, for a period longer than 1 month.
``(2) The entitlement under such subsection shall
begin with the first month (rather than twenty-fifth
month) of entitlement or status.
``(3) Subsection (f) shall not be applied.''.
(b) Conforming Amendment.--Section 1837 (42 U.S.C. 1395p)
is amended by adding at the end the following new subsection:
``(j) In applying this section in the case of an individual
who is entitled to benefits under part A pursuant to the
operation of section 226(h), the following special rules apply:
``(1) The initial enrollment period under
subsection (d) shall begin on the first day of the
first month in which the individual satisfies the
requirement of section 1836(1).
``(2) In applying subsection (g)(1), the initial
enrollment period shall begin on the first day of the
first month of entitlement to disability insurance
benefits referred to in such subsection.''.
(c) Effective Date.--The amendments made by this section
shall apply to benefits for months beginning July 1, 2001.
Subtitle C--Demonstration Projects and Studies
SEC. 121. DEMONSTRATION PROJECT FOR DISEASE MANAGEMENT FOR SEVERELY
CHRONICALLY ILL MEDICARE BENEFICIARIES.
(a) In General.--The Secretary of Health and Human Services
shall conduct a demonstration project under this section (in
this section referred to as the ``project'') to demonstrate the
impact on costs and health outcomes of applying disease
management to medicare beneficiaries with diagnosed, advanced-
stage congestive heart failure, diabetes, or coronary heart
disease. In no case may the number of participants in the
project exceed 30,000 at any time.
(b) Voluntary Participation.--
(1) Eligibility.--Medicare beneficiaries are
eligible to participate in the project only if--
(A) they meet specific medical criteria
demonstrating the appropriate diagnosis and the
advanced nature of their disease;
(B) their physicians approve of
participation in the project; and
(C) they are not enrolled in a
Medicare+Choice plan.
(2) Benefits.--A beneficiary who is enrolled in the
project shall be eligible--
(A) for disease management services related
to their chronic health condition; and
(B) for payment for all costs for
prescription drugs without regard to whether or
not they relate to the chronic health
condition, except that the project may provide
for modest cost-sharing with respect to
prescription drug coverage.
(c) Contracts With Disease Management Organizations.--
(1) In general.--The Secretary of Health and Human
Services shall carry out the project through contracts
with up to three disease management organizations. The
Secretary shall not enter into such a contract with an
organization unless the organization demonstrates that
it can produce improved health outcomes and reduce
aggregate medicare expenditures consistent with
paragraph (2).
(2) Contract provisions.--Under such contracts--
(A) such an organization shall be required
to provide for prescription drug coverage
described in subsection (b)(2)(B);
(B) such an organization shall be paid a
fee negotiated and established by the Secretary
in a manner so that (taking into account
savings in expenditures under parts A and B of
the medicare program under title XVIII of the
Social Security Act) there will be a net
reduction in expenditures under the medicare
program as a result of the project; and
(C) such an organization shall guarantee,
through an appropriate arrangement with a
reinsurance company or otherwise, the net
reduction in expenditures described in
subparagraph (B).
(3) Payments.--Payments to such organizations shall
be made in appropriate proportion from the Trust Funds
established under title XVIII of the Social Security
Act.
(d) Application of Medigap Protections to Demonstration
Project Enrollees.--(1) Subject to paragraph (2), the
provisions of section 1882(s)(3) (other than clauses (i)
through (iv) of subparagraph (B)) and 1882(s)(4) of the Social
Security Act shall apply to enrollment (and termination of
enrollment) in the demonstration project under this section, in
the same manner as they apply to enrollment (and termination of
enrollment) with a Medicare+Choice organization in a
Medicare+Choice plan.
(2) In applying paragraph (1)--
(A) any reference in clause (v) or (vi) of section
1882(s)(3)(B) of such Act to 12 months is deemed a
reference to the period of the demonstration project;
and
(B) the notification required under section
1882(s)(3)(D) of such Act shall be provided in a manner
specified by the Secretary of Health and Human
Services.
(e) Duration.--The project shall last for not longer than 3
years.
(f) Waiver.--The Secretary of Health and Human Services
shall waive such provisions of title XVIII of the Social
Security Act as may be necessary to provide for payment for
services under the project in accordance with subsection
(c)(3).
(g) Report.--The Secretary of Health and Human Services
shall submit to Congress an interim report on the project not
later than 2 years after the date it is first implemented and a
final report on the project not later than 6 months after the
date of its completion. Such reports shall include information
on the impact of the project on costs and health outcomes and
recommendations on the cost-effectiveness of extending or
expanding the project.
SEC. 122. CANCER PREVENTION AND TREATMENT DEMONSTRATION FOR ETHNIC AND
RACIAL MINORITIES.
(a) Demonstration.--
(1) In general.--The Secretary of Health and Human
Services (in this section referred to as the
``Secretary'') shall conduct demonstration projects (in
this section referred to as ``demonstration projects'')
for the purpose of developing models and evaluating
methods that--
(A) improve the quality of items and
services provided to target individuals in
order to facilitate reduced disparities in
early detection and treatment of cancer;
(B) improve clinical outcomes,
satisfaction, quality of life, and appropriate
use of medicare-covered services and referral
patterns among those target individuals with
cancer;
(C) eliminate disparities in the rate of
preventive cancer screening measures, such as
pap smears and prostate cancer screenings,
among target individuals; and
(D) promote collaboration with community-
based organizations to ensure cultural
competency of health care professionals and
linguistic access for persons with limited
English proficiency.
(2) Target individual defined.--In this section,
the term ``target individual'' means an individual of a
racial and ethnic minority group, as defined by section
1707 of the Public Health Service Act, who is entitled
to benefits under part A, and enrolled under part B, of
title XVIII of the Social Security Act.
(b) Program Design.--
(1) Initial design.--Not later than 1 year after
the date of the enactment of this Act, the Secretary
shall evaluate best practices in the private sector,
community programs, and academic research of methods
that reduce disparities among individuals of racial and
ethnic minority groups in the prevention and treatment
of cancer and shall design the demonstration projects
based on such evaluation.
(2) Number and project areas.--Not later than 2
years after the date of the enactment of this Act, the
Secretary shall implement at least 9 demonstration
projects, including the following:
(A) 2 projects for each of the 4 following
major racial and ethnic minority groups:
(i) American Indians, including
Alaska Natives, Eskimos, and Aleuts.
(ii) Asian Americans and Pacific
Islanders.
(iii) Blacks.
(iv) Hispanics.
The 2 projects must target different ethnic
subpopulations.
(B) 1 project within the Pacific Islands.
(C) At least 1 project each in a rural area
and inner-city area.
(3) Expansion of projects; implementation of
demonstration project results.--If the initial report
under subsection (c) contains an evaluation that
demonstration projects--
(A) reduce expenditures under the medicare
program under title XVIII of the Social
Security Act; or
(B) do not increase expenditures under the
medicare program and reduce racial and ethnic
health disparities in the quality of health
care services provided to target individuals
and increase satisfaction of beneficiaries and
health care providers;
the Secretary shall continue the existing demonstration
projects and may expand the number of demonstration
projects.
(c) Report to Congress.--
(1) In general.--Not later than 2 years after the
date the Secretary implements the initial demonstration
projects, and biannually thereafter, the Secretary
shall submit to Congress a report regarding the
demonstration projects.
(2) Contents of report.--Each report under
paragraph (1) shall include the following:
(A) A description of the demonstration
projects.
(B) An evaluation of--
(i) the cost-effectiveness of the
demonstration projects;
(ii) the quality of the health care
services provided to target individuals
under the demonstration projects; and
(iii) beneficiary and health care
provider satisfaction under the
demonstration projects.
(C) Any other information regarding the
demonstration projects that the Secretary
determines to be appropriate.
(d) Waiver Authority.--The Secretary shall waive compliance
with the requirements of title XVIII of the Social Security Act
to such extent and for such period as the Secretary determines
is necessary to conduct demonstration projects.
(e) Funding.--
(1) Demonstration projects.--
(A) State projects.--Except as provided in
subparagraph (B), the Secretary shall provide
for the transfer from the Federal Hospital
Insurance Trust Fund and the Federal
Supplementary Insurance Trust Fund under title
XVIII of the Social Security Act, in such
proportions as the Secretary determines to be
appropriate, of such funds as are necessary for
the costs of carrying out the demonstration
projects.
(B) Territory projects.--In the case of a
demonstration project described in subsection
(b)(2)(B), amounts shall be available only as
provided in any Federal law making
appropriations for the territories.
(2) Limitation.--In conducting demonstration
projects, the Secretary shall ensure that the aggregate
payments made by the Secretary do not exceed the sum of
the amount which the Secretary would have paid under
the program for the prevention and treatment of cancer
if the demonstration projects were not implemented,
plus $25,000,000.
SEC. 123. STUDY ON MEDICARE COVERAGE OF ROUTINE THYROID SCREENING.
(a) Study.--The Secretary of Health and Human Services
shall request the National Academy of Sciences, and as
appropriate in conjunction with the United States Preventive
Services Task Force, to conduct a study on the addition of
coverage of routine thyroid screening using a thyroid
stimulating hormone test as a preventive benefit provided to
medicare beneficiaries under title XVIII of the Social Security
Act for some or all medicare beneficiaries. In conducting the
study, the Academy shall consider the short-term and long-term
benefits, and costs to the medicare program, of such addition.
(b) Report.--Not later than 2 years after the date of the
enactment of this Act, the Secretary of Health and Human
Services shall submit a report on the findings of the study
conducted under subsection (a) to the Committee on Ways and
Means and the Committee on Commerce of the House of
Representatives and the Committee on Finance of the Senate.
SEC. 124. MEDPAC STUDY ON CONSUMER COALITIONS.
(a) Study.--The Medicare Payment Advisory Commission shall
conduct a study that examines the use of consumer coalitions in
the marketing of Medicare+Choice plans under the medicare
program under title XVIII of the Social Security Act. The study
shall examine--
(1) the potential for increased efficiency in the
medicare program through greater beneficiary knowledge
of their health care options, decreased marketing costs
of Medicare+Choice organizations, and creation of a
group market;
(2) the implications of Medicare+Choice plans and
medicare supplemental policies (under section 1882 of
the Social Security Act (42 U.S.C. 1395ss)) offering
medicare beneficiaries in the same geographic location
different benefits and premiums based on their
affiliation with a consumer coalition;
(3) how coalitions should be governed, how they
should be accountable to the Secretary of Health and
Human Services, and how potential conflicts of interest
in the activities of consumer coalitions should be
avoided; and
(4) how such coalitions should be funded.
(b) Report.--Not later than 1 year after the date of the
enactment of this Act, the Commission shall submit to Congress
a report on the study conducted under subsection (a). The
report shall include a recommendation on whether and how a
demonstration project might be conducted for the operation of
consumer coalitions under the medicare program.
(c) Consumer Coalition Defined.--For purposes of this
section, the term ``consumer coalition'' means a nonprofit,
community-based group of organizations that--
(1) provides information to medicare beneficiaries
about their health care options under the medicare
program; and
(2) negotiates benefits and premiums for medicare
beneficiaries who are members or otherwise affiliated
with the group of organizations with Medicare+Choice
organizations offering Medicare+Choice plans, issuers
of medicare supplemental policies, issuers of long-term
care coverage, and pharmacy benefit managers.
SEC. 125. STUDY ON LIMITATION ON STATE PAYMENT FOR MEDICARE COST-
SHARING AFFECTING ACCESS TO SERVICES FOR QUALIFIED
MEDICARE BENEFICIARIES.
(a) In General.--The Secretary of Health and Human Services
shall conduct a study to determine if access to certain
services (including mental health services) for qualified
medicare beneficiaries has been affected by limitations on a
State's payment for medicare cost-sharing for such
beneficiaries under section 1902(n) of the Social Security Act
(42 U.S.C. 1396a(n)). As part of such study, the Secretary
shall analyze the effect of such payment limitation on
providers who serve a disproportionate share of such
beneficiaries.
(b) Report.--Not later than 1 year after the date of the
enactment of this Act, the Secretary shall submit to Congress a
report on the study under subsection (a). The report shall
include recommendations regarding any changes that should be
made to the State payment limits under section 1902(n) for
qualified medicare beneficiaries to ensure appropriate access
to services.
SEC. 126. STUDIES ON PREVENTIVE INTERVENTIONS IN PRIMARY CARE FOR OLDER
AMERICANS.
(a) Studies.--The Secretary of Health and Human Services,
acting through the United States Preventive Services Task
Force, shall conduct a series of studies designed to identify
preventive interventions that can be delivered in the primary
care setting and that are most valuable to older Americans.
(b) Mission Statement.--The mission statement of the United
States Preventive Services Task Force is amended to include the
evaluation of services that are of particular relevance to
older Americans.
(c) Report.--Not later than 1 year after the date of the
enactment of this Act, and annually thereafter, the Secretary
of Health and Human Services shall submit to Congress a report
on the conclusions of the studies conducted under subsection
(a), together with recommendations for such legislation and
administrative actions as the Secretary considers appropriate.
SEC. 127. MEDPAC STUDY AND REPORT ON MEDICARE COVERAGE OF CARDIAC AND
PULMONARY REHABILITATION THERAPY SERVICES.
(a) Study.--
(1) In general.--The Medicare Payment Advisory
Commission shall conduct a study on coverage of cardiac
and pulmonary rehabilitation therapy services under the
medicare program under title XVIII of the Social
Security Act.
(2) Focus.--In conducting the study under paragraph
(1), the Commission shall focus on the appropriate--
(A) qualifying diagnoses required for
coverage of cardiac and pulmonary
rehabilitation therapy services;
(B) level of physician direct involvement
and supervision in furnishing such services;
and
(C) level of reimbursement for such
services.
(b) Report.--Not later than 18 months after the date of the
enactment of this Act, the Commission shall submit to Congress
a report on the study conducted under subsection (a) together
with such recommendations for legislation and administrative
action as the Commission determines appropriate.
SEC. 128. LIFESTYLE MODIFICATION PROGRAM DEMONSTRATION.
(a) In General.--The Secretary of Health and Human Services
shall carry out the demonstration project known as the
Lifestyle Modification Program Demonstration, as described in
the Health Care Financing Administration Memorandum of
Understanding entered into on November 13, 2000, and as
subsequently modified, (in this section referred to as the
``project'') in accordance with the following requirements:
(1) The project shall include no fewer than 1,800
medicare beneficiaries who complete under the project
the entire course of treatment under the Lifestyle
Modification Program.
(2) The project shall be conducted over a course of
4 years.
(b) Study on Cost-Effectiveness.--
(1) Study.--The Secretary shall conduct a study on
the cost-effectiveness of the Lifestyle Modification
Program as conducted under the project. In determining
whether such Program is cost-effective, the Secretary
shall determine (using a control group under a matched
paired experimental design) whether expenditures
incurred for medicare beneficiaries enrolled under the
project exceed expenditures for the control group of
medicare beneficiaries with similar health conditions
who are not enrolled under the project.
(2) Reports.--
(A) Initial report.--Not later that 1 year
after the date on which 900 medicare
beneficiaries have completed the entire course
of treatment under the Lifestyle Modification
Program under the project, the Secretary shall
submit to Congress an initial report on the
study conducted under paragraph (1).
(B) Final report.--Not later that 1 year
after the date on which 1,800 medicare
beneficiaries have completed the entire course
of treatment under such Program under the
project, the Secretary shall submit to Congress
a final report on the study conducted under
paragraph (1).
TITLE II--RURAL HEALTH CARE IMPROVEMENTS
Subtitle A--Critical Access Hospital Provisions
SEC. 201. CLARIFICATION OF NO BENEFICIARY COST-SHARING FOR CLINICAL
DIAGNOSTIC LABORATORY TESTS FURNISHED BY CRITICAL
ACCESS HOSPITALS.
(a) Payment Clarification.--Section 1834(g) (42 U.S.C.
1395m(g)) is amended by adding at the end the following new
paragraph:
``(4) No beneficiary cost-sharing for clinical
diagnostic laboratory services.--No coinsurance,
deductible, copayment, or other cost-sharing otherwise
applicable under this part shall apply with respect to
clinical diagnostic laboratory services furnished as an
outpatient critical access hospital service. Nothing in
this title shall be construed as providing for payment
for clinical diagnostic laboratory services furnished
as part of outpatient critical access hospital
services, other than on the basis described in this
subsection.''.
(b) Technical and Conforming Amendments.--
(1) Paragraphs (1)(D)(i) and (2)(D)(i) of section
1833(a) (42 U.S.C. 1395l(a)) are each amended by
striking ``or which are furnished on an outpatient
basis by a critical access hospital''.
(2) Section 403(d)(2) of BBRA (113 Stat. 1501A-371)
is amended by striking ``The amendment made by
subsection (a) shall apply'' and inserting ``Paragraphs
(1) through (3) of section 1834(g) of the Social
Security Act (as amended by paragraph (1)) apply''.
(c) Effective Dates.--The amendment made--
(1) by subsection (a) shall apply to services
furnished on or after the date of the enactment of
BBRA;
(2) by subsection (b)(1) shall apply as if included
in the enactment of section 403(e)(1) of BBRA (113
Stat. 1501A-371); and
(3) by subsection (b)(2) shall apply as if included
in the enactment of section 403(d)(2) of BBRA (113
Stat. 1501A-371).
SEC. 202. ASSISTANCE WITH FEE SCHEDULE PAYMENT FOR PROFESSIONAL
SERVICES UNDER ALL-INCLUSIVE RATE.
(a) In General.--Section 1834(g)(2)(B) (42 U.S.C.
1395m(g)(2)(B)) is amended by inserting ``115 percent of''
before ``such amounts''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply with respect to items and services furnished on or
after July 1, 2001.
SEC. 203. EXEMPTION OF CRITICAL ACCESS HOSPITAL SWING BEDS FROM SNF
PPS.
(a) In General.--Section 1888(e)(7) (42 U.S.C.
1395yy(e)(7)) is amended--
(1) in the heading, by striking ``Transition for''
and inserting ``Treatment of'';
(2) in subparagraph (A), by striking ``In
general.--The'' and inserting ``Transition.--Subject to
subparagraph (C), the'';
(3) in subparagraph (A), by inserting ``(other than
critical access hospitals)'' after ``facilities
described in subparagraph (B)'';
(4) in subparagraph (B), by striking ``, for which
payment'' and all that follows before the period; and
(5) by adding at the end the following new
subparagraph:
``(C) Exemption from pps of swing-bed
services furnished in critical access
hospitals.--The prospective payment system
established under this subsection shall not
apply to services furnished by a critical
access hospital pursuant to an agreement under
section 1883.''.
(b) Payment on a Reasonable Cost Basis for Swing Bed
Services Furnished by Critical Access Hospitals.--Section
1883(a) (42 U.S.C. 1395tt(a)) is amended--
(1) in paragraph (2)(A), by inserting ``(other than
a critical access hospital)'' after ``any hospital'';
and
(2) by adding at the end the following new
paragraph:
``(3) Notwithstanding any other provision of this title, a
critical access hospital shall be paid for covered skilled
nursing facility services furnished under an agreement entered
into under this section on the basis of the reasonable costs of
such services (as determined under section 1861(v)).''.
(c) Effective Date.--The amendments made by this section
shall apply to cost reporting periods beginning on or after the
date of the enactment of this Act.
SEC. 204. PAYMENT IN CRITICAL ACCESS HOSPITALS FOR EMERGENCY ROOM ON-
CALL PHYSICIANS.
(a) In General.--Section 1834(g) (42 U.S.C. 1395m(g)), as
amended by section 201(a), is further amended by adding at the
end the following new paragraph:
``(5) Coverage of costs for emergency room on-call
physicians.--In determining the reasonable costs of
outpatient critical access hospital services under
paragraphs (1) and (2)(A), the Secretary shall
recognize as allowable costs, amounts (as defined by
the Secretary) for reasonable compensation and related
costs for emergency room physicians who are on-call (as
defined by the Secretary) but who are not present on
the premises of the critical access hospital involved,
and are not otherwise furnishing physicians' services
and are not on-call at any other provider or
facility.''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to cost reporting periods beginning on or after
October 1, 2001.
SEC. 205. TREATMENT OF AMBULANCE SERVICES FURNISHED BY CERTAIN CRITICAL
ACCESS HOSPITALS.
(a) In General.--Section 1834(l) (42 U.S.C. 1395m(l)) is
amended by adding at the end the following new paragraph:
``(8) Services furnished by critical access
hospitals.--Notwithstanding any other provision of this
subsection, the Secretary shall pay the reasonable
costs incurred in furnishing ambulance services if such
services are furnished--
``(A) by a critical access hospital (as
defined in section 1861(mm)(1)), or
``(B) by an entity that is owned and
operated by a critical access hospital,
but only if the critical access hospital or entity is
the only provider or supplier of ambulance services
that is located within a 35-mile drive of such critical
access hospital.''.
(b) Conforming Amendment.--Section 1833(a)(1)(R) (42 U.S.C.
1395l(a)(1)(R)) is amended--
(1) by striking ``ambulance service,'' and
inserting ``ambulance services, (i)''; and
(2) by inserting before the comma at the end the
following: ``and (ii) with respect to ambulance
services described in section 1834(l)(8), the amounts
paid shall be the amounts determined under section
1834(g) for outpatient critical access hospital
services''.
(c) Effective Date.--The amendments made by this section
shall apply to services furnished on or after the date of the
enactment of this Act.
SEC. 206. GAO STUDY ON CERTAIN ELIGIBILITY REQUIREMENTS FOR CRITICAL
ACCESS HOSPITALS.
(a) Study.--The Comptroller General of the United States
shall conduct a study on the eligibility requirements for
critical access hospitals under section 1820(c) of the Social
Security Act (42 U.S.C. 1395i-4(c)) with respect to limitations
on average length of stay and number of beds in such a
hospital, including an analysis of--
(1) the feasibility of having a distinct part unit
as part of a critical access hospital for purposes of
the medicare program under title XVIII of such Act; and
(2) the effect of seasonal variations in patient
admissions on critical access hospital eligibility
requirements with respect to limitations on average
annual length of stay and number of beds.
(b) Report.--Not later than 1 year after the date of the
enactment of this Act, the Comptroller General shall submit to
Congress a report on the study conducted under subsection (a)
together with recommendations regarding--
(1) whether distinct part units should be permitted
as part of a critical access hospital under the
medicare program;
(2) if so permitted, the payment methodologies that
should apply with respect to services provided by such
units;
(3) whether, and to what extent, such units should
be included in or excluded from the bed limits
applicable to critical access hospitals under the
medicare program; and
(4) any adjustments to such eligibility
requirements to account for seasonal variations in
patient admissions.
Subtitle B--Other Rural Hospitals Provisions
SEC. 211. TREATMENT OF RURAL DISPROPORTIONATE SHARE HOSPITALS.
(a) Application of Uniform Threshold.--Section
1886(d)(5)(F)(v) (42 U.S.C. 1395ww(d)(5)(F)(v)) is amended--
(1) in subclause (II), by inserting ``(or 15
percent, for discharges occurring on or after April 1,
2001)'' after ``30 percent'';
(2) in subclause (III), by inserting ``(or 15
percent, for discharges occurring on or after April 1,
2001)'' after ``40 percent''; and
(3) in subclause (IV), by inserting ``(or 15
percent, for discharges occurring on or after April 1,
2001)'' after ``45 percent''.
(b) Adjustment of Payment Formulas.--
(1) Sole community hospitals.--Section
1886(d)(5)(F) (42 U.S.C. 1395ww(d)(5)(F)) is amended--
(A) in clause (iv)(VI), by inserting after
``10 percent'' the following: ``or, for
discharges occurring on or after April 1, 2001,
is equal to the percent determined in
accordance with clause (x)''; and
(B) by adding at the end the following new
clause:
``(x) For purposes of clause (iv)(VI) (relating to sole
community hospitals), in the case of a hospital for a cost
reporting period with a disproportionate patient percentage (as
defined in clause (vi)) that--
``(I) is less than 19.3, the disproportionate share
adjustment percentage is determined in accordance with
the following formula: (P-15)(.65) + 2.5;
``(II) is equal to or exceeds 19.3, but is less
than 30.0, such adjustment percentage is equal to 5.25
percent; or
``(III) is equal to or exceeds 30, such adjustment
percentage is equal to 10 percent,
where `P' is the hospital's disproportionate patient percentage
(as defined in clause (vi)).''.
(2) Rural referral centers.--Such section is
further amended--
(A) in clause (iv)(V), by inserting after
``clause (viii)'' the following: ``or, for
discharges occurring on or after April 1, 2001,
is equal to the percent determined in
accordance with clause (xi)''; and
(B) by adding at the end the following new
clause:
``(xi) For purposes of clause (iv)(V) (relating to rural
referral centers), in the case of a hospital for a cost
reporting period with a disproportionate patient percentage (as
defined in clause (vi)) that--
``(I) is less than 19.3, the disproportionate share
adjustment percentage is determined in accordance with
the following formula: (P-15)(.65) + 2.5;
``(II) is equal to or exceeds 19.3, but is less
than 30.0, such adjustment percentage is equal to 5.25
percent; or
``(III) is equal to or exceeds 30, such adjustment
percentage is determined in accordance with the
following formula: (P-30)(.6) + 5.25,
where `P' is the hospital's disproportionate patient percentage
(as defined in clause (vi)).''.
(3) Small rural hospitals generally.--Such section
is further amended--
(A) in clause (iv)(III), by inserting after
``4 percent'' the following: ``or, for
discharges occurring on or after April 1, 2001,
is equal to the percent determined in
accordance with clause (xii)''; and
(B) by adding at the end the following new
clause:
``(xii) For purposes of clause (iv)(III) (relating to small
rural hospitals generally), in the case of a hospital for a
cost reporting period with a disproportionate patient
percentage (as defined in clause (vi)) that--
``(I) is less than 19.3, the disproportionate share
adjustment percentage is determined in accordance with
the following formula: (P-15)(.65) + 2.5; or
``(II) is equal to or exceeds 19.3, such adjustment
percentage is equal to 5.25 percent,
where `P' is the hospital's disproportionate patient percentage
(as defined in clause (vi)).''.
(4) Hospitals that are both sole community
hospitals and rural referral centers.--Such section is
further amended, in clause (iv)(IV), by inserting after
``clause (viii)'' the following: ``or, for discharges
occurring on or after April 1, 2001, the greater of the
percentages determined under clause (x) or (xi)''.
(5) Urban hospitals with less than 100 beds.--Such
section is further amended--
(A) in clause (iv)(II), by inserting after
``5 percent'' the following: ``or, for
discharges occurring on or after April 1, 2001,
is equal to the percent determined in
accordance with clause (xiii)''; and
(B) by adding at the end the following new
clause:
``(xiii) For purposes of clause (iv)(II) (relating to urban
hospitals with less than 100 beds), in the case of a hospital
for a cost reporting period with a disproportionate patient
percentage (as defined in clause (vi)) that--
``(I) is less than 19.3, the disproportionate share
adjustment percentage is determined in accordance with
the following formula: (P-15)(.65) + 2.5; or
``(II) is equal to or exceeds 19.3, such adjustment
percentage is equal to 5.25 percent,
where `P' is the hospital's disproportionate patient percentage
(as defined in clause (vi)).''.
SEC. 212. OPTION TO BASE ELIGIBILITY FOR MEDICARE DEPENDENT, SMALL
RURAL HOSPITAL PROGRAM ON DISCHARGES DURING 2 OF
THE 3 MOST RECENTLY AUDITED COST REPORTING PERIODS.
(a) In General.--Section 1886(d)(5)(G)(iv)(IV) (42 U.S.C.
1395ww(d)(5)(G)(iv)(IV)) is amended by inserting ``, or 2 of
the 3 most recently audited cost reporting periods for which
the Secretary has a settled cost report,'' after ``1987''.
(b) Effective Date.--The amendment made by this section
shall apply with respect to cost reporting periods beginning on
or after April 1, 2001.
SEC. 213. EXTENSION OF OPTION TO USE REBASED TARGET AMOUNTS TO ALL SOLE
COMMUNITY HOSPITALS.
(a) In General.--Section 1886(b)(3)(I)(i) (42 U.S.C.
1395ww(b)(3)(I)(i)) is amended--
(1) in the matter preceding subclause (I), by
striking ``that for its cost reporting period beginning
during 1999'' and all that follows through ``for such
target amount'' and inserting ``there shall be
substituted for the amount otherwise determined under
subsection (d)(5)(D)(i), if such substitution results
in a greater amount of payment under this section for
the hospital'';
(2) in subclause (I), by striking ``target amount
otherwise applicable'' and all that follows through
``target amount')'' and inserting ``the amount
otherwise applicable to the hospital under subsection
(d)(5)(D)(i) (referred to in this clause as the
`subsection (d)(5)(D)(i) amount')''; and
(3) in each of subclauses (II) and (III), by
striking ``subparagraph (C) target amount'' and
inserting ``subsection (d)(5)(D)(i) amount''.
(b) Effective Date.--The amendments made by this section
shall take effect as if included in the enactment of section
405 of BBRA (113 Stat. 1501A-372).
SEC. 214. MEDPAC ANALYSIS OF IMPACT OF VOLUME ON PER UNIT COST OF RURAL
HOSPITALS WITH PSYCHIATRIC UNITS.
The Medicare Payment Advisory Commission, in its study
conducted pursuant to subsection (a) of section 411 of BBRA
(113 Stat. 1501A-377), shall include--
(1) in such study an analysis of the impact of
volume on the per unit cost of rural hospitals with
psychiatric units; and
(2) in its report under subsection (b) of such
section a recommendation on whether special treatment
for such hospitals may be warranted.
Subtitle C--Other Rural Provisions
SEC. 221. ASSISTANCE FOR PROVIDERS OF AMBULANCE SERVICES IN RURAL
AREAS.
(a) Transitional Assistance in Certain Mileage Rates.--
Section 1834(l) (42 U.S.C. 1395m(l)) is amended by adding at
the end the following new paragraph:
``(8) Transitional assistance for rural
providers.--In the case of ground ambulance services
furnished on or after July 1, 2001, and before January
1, 2004, for which the transportation originates in a
rural area (as defined in section 1886(d)(2)(D)) or in
a rural census tract of a metropolitan statistical area
(as determined under the most recent modification of
the Goldsmith Modification, originally published in the
Federal Register on February 27, 1992 (57 Fed. Reg.
6725)), the fee schedule established under this
subsection shall provide that, with respect to the
payment rate for mileage for a trip above 17 miles, and
up to 50 miles, the rate otherwise established shall be
increased by not less than \1/2\ of the additional
payment per mile established for the first 17 miles of
such a trip originating in a rural area.''.
(b) GAO Studies on the Costs of Ambulance Services
Furnished in Rural Areas.--
(1) Study.--The Comptroller General of the United
States shall conduct a study on each of the matters
described in paragraph (2).
(2) Matters described.--The matters referred to in
paragraph (1) are the following:
(A) The cost of efficiently providing
ambulance services for trips originating in
rural areas, with special emphasis on
collection of cost data from rural providers.
(B) The means by which rural areas with low
population densities can be identified for the
purpose of designating areas in which the cost
of providing ambulance services would be
expected to be higher than similar services
provided in more heavily populated areas
because of low usage. Such study shall also
include an analysis of the additional costs of
providing ambulance services in areas
designated under the previous sentence.
(3) Report.--Not later than June 30, 2002, the
Comptroller General shall submit to Congress a report
on the results of the studies conducted under paragraph
(1) and shall include recommendations on steps that
should be taken to assure access to ambulance services
in rural areas.
(c) Adjustment in Rural Rates.--In providing for
adjustments under subparagraph (D) of section 1834(l)(2) of the
Social Security Act (42 U.S.C. 1395m(l)(2)) for years beginning
with 2004, the Secretary of Health and Human Services shall
take into consideration the recommendations contained in the
report under subsection (b)(2) and shall adjust the fee
schedule payment rates under such section for ambulance
services provided in low density rural areas based on the
increased cost (if any) of providing such services in such
areas.
(d) Effective Date.--The amendment made by subsection (a)
shall apply to services furnished on or after July 1, 2001. In
applying such amendment to services furnished on or after such
date and before January 1, 2002, the amount of the rate
increase provided under such amendment shall be equal to $1.25
per mile.
SEC. 222. PAYMENT FOR CERTAIN PHYSICIAN ASSISTANT SERVICES.
(a) Payment for Certain Physician Assistant Services.--
Section 1842(b)(6)(C) (42 U.S.C. 1395u(b)(6)(C)) is amended--
(1) by striking ``for such services provided before
January 1, 2003,''; and
(2) by striking the semicolon at the end and
inserting a comma.
(b) Effective Date.--The amendments made by subsection (a)
shall take effect on the date of the enactment of this Act.
SEC. 223. REVISION OF MEDICARE REIMBURSEMENT FOR TELEHEALTH SERVICES.
(a) Time Limit for BBA Provision.--Section 4206(a) of BBA
(42 U.S.C. 1395l note) is amended by striking ``Not later than
January 1, 1999'' and inserting ``For services furnished on and
after January 1, 1999, and before October 1, 2001''.
(b) Expansion of Medicare Payment for Telehealth
Services.--Section 1834 (42 U.S.C. 1395m) is amended by adding
at the end the following new subsection:
``(m) Payment for Telehealth Services.--
``(1) In general.--The Secretary shall pay for
telehealth services that are furnished via a
telecommunications system by a physician (as defined in
section 1861(r)) or a practitioner (described in
section 1842(b)(18)(C)) to an eligible telehealth
individual enrolled under this part notwithstanding
that the individual physician or practitioner providing
the telehealth service is not at the same location as
the beneficiary. For purposes of the preceding
sentence, in the case of any Federal telemedicine
demonstration program conducted in Alaska or Hawaii,
the term `telecommunications system' includes store-
and-forward technologies that provide for the
asynchronous transmission of health care information in
single or multimedia formats.
``(2) Payment amount.--
``(A) Distant site.--The Secretary shall
pay to a physician or practitioner located at a
distant site that furnishes a telehealth
service to an eligible telehealth individual an
amount equal to the amount that such physician
or practitioner would have been paid under this
title had such service been furnished without
the use of a telecommunications system.
``(B) Facility fee for originating site.--
With respect to a telehealth service, subject
to section 1833(a)(1)(U), there shall be paid
to the originating site a facility fee equal
to--
``(i) for the period beginning on
October 1, 2001, and ending on December
31, 2001, and for 2002, $20; and
``(ii) for a subsequent year, the
facility fee specified in clause (i) or
this clause for the preceding year
increased by the percentage increase in
the MEI (as defined in section
1842(i)(3)) for such subsequent year.
``(C) Telepresenter not required.--Nothing
in this subsection shall be construed as
requiring an eligible telehealth individual to
be presented by a physician or practitioner at
the originating site for the furnishing of a
service via a telecommunications system, unless
it is medically necessary (as determined by the
physician or practitioner at the distant site).
``(3) Limitation on beneficiary charges.--
``(A) Physician and practitioner.--The
provisions of section 1848(g) and subparagraphs
(A) and (B) of section 1842(b)(18) shall apply
to a physician or practitioner receiving
payment under this subsection in the same
manner as they apply to physicians or
practitioners under such sections.
``(B) Originating site.--The provisions of
section 1842(b)(18) shall apply to originating
sites receiving a facility fee in the same
manner as they apply to practitioners under
such section.
``(4) Definitions.--For purposes of this
subsection:
``(A) Distant site.--The term `distant
site' means the site at which the physician or
practitioner is located at the time the service
is provided via a telecommunications system.
``(B) Eligible telehealth individual.--The
term `eligible telehealth individual' means an
individual enrolled under this part who
receives a telehealth service furnished at an
originating site.
``(C) Originating site.--
``(i) In general.--The term
`originating site' means only those
sites described in clause (ii) at which
the eligible telehealth individual is
located at the time the service is
furnished via a telecommunications
system and only if such site is
located--
``(I) in an area that is
designated as a rural health
professional shortage area
under section 332(a)(1)(A) of
the Public Health Service Act
(42 U.S.C. 254e(a)(1)(A));
``(II) in a county that is
not included in a Metropolitan
Statistical Area; or
``(III) from an entity that
participates in a Federal
telemedicine demonstration
project that has been approved
by (or receives funding from)
the Secretary of Health and
Human Services as of December
31, 2000.
``(ii) Sites described.--The sites
referred to in clause (i) are the
following sites:
``(I) The office of a
physician or practitioner.
``(II) A critical access
hospital (as defined in section
1861(mm)(1)).
``(III) A rural health
clinic (as defined in section
1861(aa)(s)).
``(IV) A Federally
qualified health center (as
defined in section
1861(aa)(4)).
``(V) A hospital (as
defined in section 1861(e)).
``(D) Physician.--The term `physician' has
the meaning given that term in section 1861(r).
``(E) Practitioner.--The term
`practitioner' has the meaning given that term
in section 1842(b)(18)(C).
``(F) Telehealth service.--
``(i) In general.--The term
`telehealth service' means professional
consultations, office visits, and
office psychiatry services (identified
as of July 1, 2000, by HCPCS codes
99241-99275, 99201-99215, 90804-90809,
and 90862 (and as subsequently modified
by the Secretary)), and any additional
service specified by the Secretary.
``(ii) Yearly update.--The
Secretary shall establish a process
that provides, on an annual basis, for
the addition or deletion of services
(and HCPCS codes), as appropriate, to
those specified in clause (i) for
authorized payment under paragraph
(1).''.
(c) Conforming Amendment.--Section 1833(a)(1) (42 U.S.C.
1395l(1)), as amended by section 105(c), is further amended--
(1) by striking ``and (T)'' and inserting ``(T)'';
and
(2) by inserting before the semicolon at the end
the following: ``, and (U) with respect to facility
fees described in section 1834(m)(2)(B), the amounts
paid shall be 80 percent of the lesser of the actual
charge or the amounts specified in such section''.
(d) Study and Report on Additional Coverage.--
(1) Study.--The Secretary of Health and Human
Services shall conduct a study to identify--
(A) settings and sites for the provision of
telehealth services that are in addition to
those permitted under section 1834(m) of the
Social Security Act, as added by subsection
(b);
(B) practitioners that may be reimbursed
under such section for furnishing telehealth
services that are in addition to the
practitioners that may be reimbursed for such
services under such section; and
(C) geographic areas in which telehealth
services may be reimbursed that are in addition
to the geographic areas where such services may
be reimbursed under such section.
(2) Report.--Not later than 2 years after the date
of the enactment of this Act, the Secretary shall
submit to Congress a report on the study conducted
under paragraph (1) together with such recommendations
for legislation that the Secretary determines are
appropriate.
(e) Effective Date.--The amendments made by subsections (b)
and (c) shall be effective for services furnished on or after
October 1, 2001.
SEC. 224. EXPANDING ACCESS TO RURAL HEALTH CLINICS.
(a) In General.--The matter in section 1833(f) (42 U.S.C.
1395l(f)) preceding paragraph (1) is amended by striking
``rural hospitals'' and inserting ``hospitals''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to services furnished on or after July 1, 2001.
SEC. 225. MEDPAC STUDY ON LOW-VOLUME, ISOLATED RURAL HEALTH CARE
PROVIDERS.
(a) Study.--The Medicare Payment Advisory Commission shall
conduct a study on the effect of low patient and procedure
volume on the financial status of low-volume, isolated rural
health care providers participating in the medicare program
under title XVIII of the Social Security Act.
(b) Report.--Not later than 18 months after the date of the
enactment of this Act, the Commission shall submit to Congress
a report on the study conducted under subsection (a)
indicating--
(1) whether low-volume, isolated rural health care
providers are having, or may have, significantly
decreased medicare margins or other financial
difficulties resulting from any of the payment
methodologies described in subsection (c);
(2) whether the status as a low-volume, isolated
rural health care provider should be designated under
the medicare program and any criteria that should be
used to qualify for such a status; and
(3) any changes in the payment methodologies
described in subsection (c) that are necessary to
provide appropriate reimbursement under the medicare
program to low-volume, isolated rural health care
providers (as designated pursuant to paragraph (2)).
(c) Payment Methodologies Described.--The payment
methodologies described in this subsection are the following:
(1) The prospective payment system for hospital
outpatient department services under section 1833(t) of
the Social Security Act (42 U.S.C. 1395l(t)).
(2) The fee schedule for ambulance services under
section 1834(l) of such Act (42 U.S.C. 1395m(l)).
(3) The prospective payment system for inpatient
hospital services under section 1886 of such Act (42
U.S.C. 1395ww).
(4) The prospective payment system for routine
service costs of skilled nursing facilities under
section 1888(e) of such Act (42 U.S.C. 1395yy(e)).
(5) The prospective payment system for home health
services under section 1895 of such Act (42 U.S.C.
1395fff).
TITLE III--PROVISIONS RELATING TO PART A
Subtitle A--Inpatient Hospital Services
SEC. 301. REVISION OF ACUTE CARE HOSPITAL PAYMENT UPDATE FOR 2001.
(a) In General.--Section 1886(b)(3)(B)(i) (42 U.S.C.
1395ww(b)(3)(B)(i)) is amended--
(1) in subclause (XVI), by striking ``minus 1.1
percentage points for hospitals (other than sole
community hospitals) in all areas, and the market
basket percentage increase for sole community
hospitals,'' and inserting ``for hospitals in all
areas,'';
(2) in subclause (XVII)--
(A) by striking ``minus 1.1 percentage
points'' and inserting ``minus 0.55 percentage
points; and
(B) by striking ``and'' at the end;
(3) by redesignating subclause (XVIII) as subclause
(XIX);
(4) in subclause (XIX), as so redesignated, by
striking ``fiscal year 2003'' and inserting ``fiscal
year 2004''; and
(5) by inserting after subclause (XVII) the
following new subclause:
``(XVIII) for fiscal year 2003, the market basket
percentage increase minus 0.55 percentage points for
hospitals in all areas, and''.
(b) Special Rule for Payment for Fiscal Year 2001.--
Notwithstanding the amendment made by subsection (a), for
purposes of making payments for fiscal year 2001 for inpatient
hospital services furnished by subsection (d) hospitals (as
defined in section 1886(d)(1)(B) of the Social Security Act (42
U.S.C. 1395ww(d)(1)(B)), the ``applicable percentage increase''
referred to in section 1886(b)(3)(B)(i) of such Act (42 U.S.C.
1395ww(b)(3)(B)(i))--
(1) for discharges occurring on or after October 1,
2000, and before April 1, 2001, shall be determined in
accordance with subclause (XVI) of such section as in
effect on the day before the date of the enactment of
this Act; and
(2) for discharges occurring on or after April 1,
2001, and before October 1, 2001, shall be equal to--
(A) the market basket percentage increase
plus 1.1 percentage points for hospitals (other
than sole community hospitals) in all areas;
and
(B) the market basket percentage increase
for sole community hospitals.
(c) Consideration of Price of Blood and Blood Products in
Market Basket Index.--The Secretary of Health and Human
Services shall, when next (after the date of the enactment of
this Act) rebasing and revising the hospital market basket
index (as defined in section 1886(b)(3)(B)(iii) of the Social
Security Act (42 U.S.C. 1395ww(b)(3)(B)(iii))), consider the
prices of blood and blood products purchased by hospitals and
determine whether those prices are adequately reflected in such
index.
(d) MedPAC Study and Report Regarding Certain Hospital
Costs.--
(1) Study.--The Medicare Payment Advisory
Commission shall conduct a study on--
(A) any increased costs incurred by
subsection (d) hospitals (as defined in
paragraph (1)(B) of section 1886(d) of the
Social Security Act (42 U.S.C. 1395ww(d))) in
providing inpatient hospital services to
medicare beneficiaries under title XVIII of
such Act during the period beginning on October
1, 1983, and ending on September 30, 1999, that
were attributable to--
(i) complying with new blood safety
measure requirements; and
(ii) providing such services using
new technologies;
(B) the extent to which the prospective
payment system for such services under such
section provides adequate and timely
recognition of such increased costs;
(C) the prospects for (and to the extent
practicable, the magnitude of) cost increases
that hospitals will incur in providing such
services that are attributable to complying
with new blood safety measure requirements and
providing such services using new technologies
during the 10 years after the date of the
enactment of this Act; and
(D) the feasibility and advisability of
establishing mechanisms under such payment
system to provide for more timely and accurate
recognition of such cost increases in the
future.
(2) Consultation.--In conducting the study under
this subsection, the Commission shall consult with
representatives of the blood community, including--
(A) hospitals;
(B) organizations involved in the
collection, processing, and delivery of blood;
and
(C) organizations involved in the
development of new blood safety technologies.
(3) Report.--Not later than 1 year after the date
of the enactment of this Act, the Commission shall
submit to Congress a report on the study conducted
under paragraph (1) together with such recommendations
for legislation and administrative action as the
Commission determines appropriate.
(e) Adjustment for Inpatient Case Mix Changes.--
(1) In general.--Section 1886(d)(3)(A) (42 U.S.C.
1395ww(d)(3)(A)) is amended by adding at the end the
following new clause:
``(vi) Insofar as the Secretary determines that the
adjustments under paragraph (4)(C)(i) for a previous
fiscal year (or estimates that such adjustments for a
future fiscal year) did (or are likely to) result in a
change in aggregate payments under this subsection
during the fiscal year that are a result of changes in
the coding or classification of discharges that do not
reflect real changes in case mix, the Secretary may
adjust the average standardized amounts computed under
this paragraph for subsequent fiscal years so as to
eliminate the effect of such coding or classification
changes.''.
(2) Effective date.--The amendment made by
paragraph (1) shall apply to discharges occurring on or
after October 1, 2001.
SEC. 302. ADDITIONAL MODIFICATION IN TRANSITION FOR INDIRECT MEDICAL
EDUCATION (IME) PERCENTAGE ADJUSTMENT.
(a) In General.--Section 1886(d)(5)(B)(ii) (42 U.S.C.
1395ww(d)(5)(B)(ii)) is amended--
(1) in subclause (V) by striking ``and'' at the
end;
(2) by redesignating subclause (VI) as subclause
(VII);
(3) in subclause (VII) as so redesignated, by
striking ``2001'' and inserting ``2002''; and
(4) by inserting after subclause (V) the following
new subclause:
``(VI) during fiscal year 2002, `c' is
equal to 1.6; and''.
(b) Special Rule for Payment for Fiscal Year 2001.--
Notwithstanding paragraph (5)(B)(ii)(V) of section 1886(d) of
the Social Security Act (42 U.S.C. 1395ww(d)(5)(B)(ii)(V)), for
purposes of making payments for subsection (d) hospitals (as
defined in paragraph (1)(B) of such section) with indirect
costs of medical education, the indirect teaching adjustment
factor referred to in paragraph (5)(B)(ii) of such section
shall be determined, for discharges occurring on or after April
1, 2001, and before October 1, 2001, as if ``c'' in paragraph
(5)(B)(ii)(V) of such section equalled 1.66 rather than 1.54.
(c) Conforming Amendment Relating to Determination of
Standardized Amount.--Section 1886(d)(2)(C)(i) (42 U.S.C.
1395ww(d)(2)(C)(i)) is amended by inserting ``or of section 302
of the Medicare, Medicaid, and SCHIP Benefits Improvement and
Protection Act of 2000'' after ``Balanced Budget Refinement Act
of 1999''.
(d) Clerical Amendments.--Section 1886(d)(5)(B) (42 U.S.C.
1395ww(d)(5)(B)), as amended by subsection (a), is further
amended by moving the indentation of each of the following 2
ems to the left:
(1) Clauses (ii), (v), and (vi).
(2) Subclauses (I) (II), (III), (IV), (V), and
(VII) of clause (ii).
(3) Subclauses (I) and (II) of clause (vi) and the
flush sentence at the end of such clause.
SEC. 303. DECREASE IN REDUCTIONS FOR DISPROPORTIONATE SHARE HOSPITAL
(DSH) PAYMENTS.
(a) In General.--Section 1886(d)(5)(F)(ix) (42 U.S.C.
1395ww(d)(5)(F)(ix)) is amended--
(1) in subclause (III), by striking ``each of'' and
by inserting ``and 2 percent, respectively'' after ``3
percent''; and
(2) in subclause (IV), by striking ``4 percent''
and inserting ``3 percent''.
(b) Special Rule for Payment for Fiscal Year 2001.--
Notwithstanding the amendment made by subsection (a)(1), for
purposes of making disproportionate share payments for
subsection (d) hospitals (as defined in section 1886(d)(1)(B)
of the Social Security Act (42 U.S.C. 1395ww(d)(1)(B)) for
fiscal year 2001, the additional payment amount otherwise
determined under clause (ii) of section 1886(d)(5)(F) of the
Social Security Act (42 U.S.C. 1395ww(d)(5)(F))--
(1) for discharges occurring on or after October 1,
2000, and before April 1, 2001, shall be adjusted as
provided by clause (ix)(III) of such section as in
effect on the day before the date of the enactment of
this Act; and
(2) for discharges occurring on or after April 1,
2001, and before October 1, 2001, shall, instead of
being reduced by 3 percent as provided by clause
(ix)(III) of such section as in effect after the date
of the enactment of this Act, be reduced by 1 percent.
(c) Conforming Amendments Relating to Determination of
Standardized Amount.--Section 1886(d)(2)(C)(iv) (42 U.S.C.
1395ww(d)(2)(C)(iv)), is amended--
(1) by striking ``1989 or'' and inserting
``1989,''; and
(2) by inserting ``, or the enactment of section
303 of the Medicare, Medicaid, and SCHIP Benefits
Improvement and Protection Act of 2000'' after
``Omnibus Budget Reconciliation Act of 1990''.
(d) Technical Amendment.--
(1) In general.--Section 1886(d)(5)(F)(i) (42
U.S.C. 1395ww(d)(5)(F)(i)) is amended by striking ``and
before October 1, 1997,''.
(2) Effective date.--The amendment made by
paragraph (1) is effective as if included in the
enactment of BBA.
(e) Reference to Changes in DSH for Rural Hospitals.--For
additional changes in the DSH program for rural hospitals, see
section 211.
SEC. 304. WAGE INDEX IMPROVEMENTS.
(a) Duration of Wage Index Reclassification; Use of 3-Year
Wage Data.--Section 1886(d)(10)(D) (42 U.S.C. 1395ww(d)(10)(D))
is amended by adding at the end the following new clauses:
``(v) Any decision of the Board to reclassify a subsection
(d) hospital for purposes of the adjustment factor described in
subparagraph (C)(i)(II) for fiscal year 2001 or any fiscal year
thereafter shall be effective for a period of 3 fiscal years,
except that the Secretary shall establish procedures under
which a subsection (d) hospital may elect to terminate such
reclassification before the end of such period.
``(vi) Such guidelines shall provide that, in making
decisions on applications for reclassification for the purposes
described in clause (v) for fiscal year 2003 and any succeeding
fiscal year, the Board shall base any comparison of the average
hourly wage for the hospital with the average hourly wage for
hospitals in an area on--
``(I) an average of the average hourly wage amount
for the hospital from the most recently published
hospital wage survey data of the Secretary (as of the
date on which the hospital applies for
reclassification) and such amount from each of the two
immediately preceding surveys; and
``(II) an average of the average hourly wage amount
for hospitals in such area from the most recently
published hospital wage survey data of the Secretary
(as of the date on which the hospital applies for
reclassification) and such amount from each of the two
immediately preceding surveys.''.
(b) Process To Permit Statewide Wage Index Calculation and
Application.--
(1) In general.--The Secretary of Health and Human
Services shall establish a process (based on the
voluntary process utilized by the Secretary of Health
and Human Services under section 1848 of the Social
Security Act (42 U.S.C. 1395w-4) for purposes of
computing and applying a statewide geographic
adjustment factor) under which an appropriate statewide
entity may apply to have all the geographic areas in a
State treated as a single geographic area for purposes
of computing and applying the area wage index under
section 1886(d)(3)(E) of such Act (42 U.S.C.
1395ww(d)(3)(E)). Such process shall be established by
October 1, 2001, for reclassifications beginning in
fiscal year 2003.
(2) Prohibition on individual hospital
reclassification.--Notwithstanding any other provision
of law, if the Secretary applies a statewide geographic
wage index under paragraph (1) with respect to a State,
any application submitted by a hospital in that State
under section 1886(d)(10) of the Social Security Act
(42 U.S.C. 1395ww(d)(10)) for geographic
reclassification shall not be considered.
(c) Collection of Information on Occupational Mix.--
(1) In general.--The Secretary of Health and Human
Services shall provide for the collection of data every
3 years on occupational mix for employees of each
subsection (d) hospital (as defined in section
1886(d)(1)(D) of the Social Security Act (42 U.S.C.
1395ww(d)(1)(D))) in the provision of inpatient
hospital services, in order to construct an
occupational mix adjustment in the hospital area wage
index applied under section 1886(d)(3)(E) of such Act
(42 U.S.C. 1395ww(d)(3)(E)).
(2) Application.--The third sentence of section
1886(d)(3)(E) (42 U.S.C. 1395ww(d)(3)(E)) is amended by
striking ``To the extent determined feasible by the
Secretary, such survey shall measure'' and inserting
``Not less often than once every 3 years the Secretary
(through such survey or otherwise) shall measure''.
(3) Effective date.--By not later than September
30, 2003, for application beginning October 1, 2004,
the Secretary shall first complete--
(A) the collection of data under paragraph
(1); and
(B) the measurement under the third
sentence of section 1886(d)(3)(E), as amended
by paragraph (2).
SEC. 305. PAYMENT FOR INPATIENT SERVICES OF REHABILITATION HOSPITALS.
(a) Assistance With Administrative Costs Associated With
Completion of Patient Assessment.--Section 1886(j)(3)(B) (42
U.S.C. 1395ww(j)(3)(B)) is amended by striking ``98 percent''
and inserting ``98 percent for fiscal year 2001 and 100 percent
for fiscal year 2002''.
(b) Election To Apply Full Prospective Payment Rate Without
Phase-in.--
(1) In general.--Paragraph (1) of section 1886(j)
(42 U.S.C. 1395ww(j)) is amended--
(A) in subparagraph (A), by inserting
``other than a facility making an election
under subparagraph (F)'' before ``in a cost
reporting period'';
(B) in subparagraph (B), by inserting ``or,
in the case of a facility making an election
under subparagraph (F), for any cost reporting
period described in such subparagraph,'' after
``2002,''; and
(C) by adding at the end the following new
subparagraph:
``(F) Election to apply full prospective
payment system.--A rehabilitation facility may
elect, not later than 30 days before its first
cost reporting period for which the payment
methodology under this subsection applies to
the facility, to have payment made to the
facility under this subsection under the
provisions of subparagraph (B) (rather than
subparagraph (A)) for each cost reporting
period to which such payment methodology
applies.''.
(2) Clarification.--Paragraph (3)(B) of such
section is amended by inserting ``but not taking into
account any payment adjustment resulting from an
election permitted under paragraph (1)(F)'' after
``paragraphs (4) and (6)''.
(c) Effective Date.--The amendments made by this section
take effect as if included in the enactment of BBA.
SEC. 306. PAYMENT FOR INPATIENT SERVICES OF PSYCHIATRIC HOSPITALS.
With respect to hospitals described in clause (i) of
section 1886(d)(1)(B) of the Social Security Act (42 U.S.C.
1395ww(d)(1)(B)) and psychiatric units described in the matter
following clause (v) of such section, in making incentive
payments to such hospitals under section 1886(b)(1)(A) of such
Act (42 U.S.C. 1395ww(b)(1)(A)) for cost reporting periods
beginning on or after October 1, 2000, and before October 1,
2001, the Secretary of Health and Human Services, in clause
(ii) of such section, shall substitute ``3 percent'' for ``2
percent''.
SEC. 307. PAYMENT FOR INPATIENT SERVICES OF LONG-TERM CARE HOSPITALS.
(a) Increased Target Amounts and Caps for Long-Term Care
Hospitals Before Implementation of the Prospective Payment
System.--
(1) In general.--Section 1886(b)(3) (42 U.S.C.
1395ww(b)(3)) is amended--
(A) in subparagraph (H)(ii)(III), by
inserting ``subject to subparagraph (J),''
after ``2002,''; and
(B) by adding at the end the following new
subparagraph:
``(J) For cost reporting periods beginning during fiscal
year 2001, for a hospital described in subsection
(d)(1)(B)(iv)--
``(i) the limiting or cap amount otherwise
determined under subparagraph (H) shall be increased by
2 percent; and
``(ii) the target amount otherwise determined under
subparagraph (A) shall be increased by 25 percent
(subject to the limiting or cap amount determined under
subparagraph (H), as increased by clause (i)).''.
(2) Application.--The amendments made by subsection
(a) and by section 122 of BBRA (113 Stat. 1501A-331)
shall not be taken into account in the development and
implementation of the prospective payment system under
section 123 of BBRA (113 Stat. 1501A-331).
(b) Implementation of Prospective Payment System for Long-
Term Care Hospitals.--
(1) Modification of requirement.--In developing the
prospective payment system for payment for inpatient
hospital services provided in long-term care hospitals
described in section 1886(d)(1)(B)(iv) of the Social
Security Act (42 U.S.C. 1395ww(d)(1)(B)(iv)) under the
medicare program under title XVIII of such Act required
under section 123 of BBRA, the Secretary of Health and
Human Services shall examine the feasibility and the
impact of basing payment under such a system on the use
of existing (or refined) hospital diagnosis-related
groups (DRGs) that have been modified to account for
different resource use of long-term care hospital
patients as well as the use of the most recently
available hospital discharge data. The Secretary shall
examine and may provide for appropriate adjustments to
the long-term hospital payment system, including
adjustments to DRG weights, area wage adjustments,
geographic reclassification, outliers, updates, and a
disproportionate share adjustment consistent with
section 1886(d)(5)(F) of the Social Security Act (42
U.S.C. 1395ww(d)(5)(F)).
(2) Default implementation of system based on
existing drg methodology.--If the Secretary is unable
to implement the prospective payment system under
section 123 of the BBRA by October 1, 2002, the
Secretary shall implement a prospective payment system
for such hospitals that bases payment under such a
system using existing hospital diagnosis-related groups
(DRGs), modified where feasible to account for resource
use of long-term care hospital patients using the most
recently available hospital discharge data for such
services furnished on or after that date.
Subtitle B--Adjustments to PPS Payments for Skilled Nursing Facilities
SEC. 311. ELIMINATION OF REDUCTION IN SKILLED NURSING FACILITY (SNF)
MARKET BASKET UPDATE IN 2001.
(a) In General.--Section 1888(e)(4)(E)(ii) (42 U.S.C.
1395yy(e)(4)(E)(ii)) is amended--
(1) by redesignating subclauses (II) and (III) as
subclauses (III) and (IV), respectively;
(2) in subclause (III), as so redesignated--
(A) by striking ``each of fiscal years 2001
and 2002'' and inserting ``each of fiscal years
2002 and 2003''; and
(B) by striking ``minus 1 percentage
point'' and inserting ``minus 0.5 percentage
points''; and
(3) by inserting after subclause (I) the following
new subclause:
``(II) for fiscal year
2001, the rate computed for the
previous fiscal year increased
by the skilled nursing facility
market basket percentage change
for the fiscal year;''.
(b) Special Rule for Payment for Fiscal Year 2001.--
Notwithstanding the amendments made by subsection (a), for
purposes of making payments for covered skilled nursing
facility services under section 1888(e) of the Social Security
Act (42 U.S.C. 1395yy(e)) for fiscal year 2001, the Federal per
diem rate referred to in paragraph (4)(E)(ii) of such section--
(1) for the period beginning on October 1, 2000,
and ending on March 31, 2001, shall be the rate
determined in accordance with the law as in effect on
the day before the date of the enactment of this Act;
and
(2) for the period beginning on April 1, 2001, and
ending on September 30, 2001, shall be the rate that
would have been determined under such section if ``plus
1 percentage point'' had been substituted for ``minus 1
percentage point'' under subclause (II) of such
paragraph (as in effect on the day before the date of
the enactment of this Act).
(c) Relation to Temporary Increase in BBRA.--The increases
provided under section 101 of BBRA (113 Stat. 1501A-325) shall
be in addition to any increase resulting from the amendments
made by subsection (a).
(d) GAO Report on Adequacy of SNF Payment Rates.--Not later
than July 1, 2002, the Comptroller General of the United States
shall submit to Congress a report on the adequacy of medicare
payment rates to skilled nursing facilities and the extent to
which medicare contributes to the financial viability of such
facilities. Such report shall take into account the role of
private payors, medicaid, and case mix on the financial
performance of these facilities, and shall include an analysis
(by specific RUG classification) of the number and
characteristics of such facilities.
(e) HCFA Study of Classification Systems for SNF
Residents.--
(1) Study.--The Secretary of Health and Human
Services shall conduct a study of the different systems
for categorizing patients in medicare skilled nursing
facilities in a manner that accounts for the relative
resource utilization of different patient types.
(2) Report.--Not later than January 1, 2005, the
Secretary shall submit to Congress a report on the
study conducted under subsection (a). Such report shall
include such recommendations regarding changes in law
as may be appropriate.
SEC. 312. INCREASE IN NURSING COMPONENT OF PPS FEDERAL RATE.
(a) In General.--The Secretary of Health and Human Services
shall increase by 16.66 percent the nursing component of the
case-mix adjusted Federal prospective payment rate specified in
Tables 3 and 4 of the final rule published in the Federal
Register by the Health Care Financing Administration on July
31, 2000 (65 Fed. Reg. 46770) and as subsequently updated,
effective for services furnished on or after April 1, 2001, and
before October 1, 2002.
(b) GAO Audit of Nursing Staff Ratios.--
(1) Audit.--The Comptroller General of the United
States shall conduct an audit of nursing staffing
ratios in a representative sample of medicare skilled
nursing facilities. Such sample shall cover selected
States and shall include broad representation with
respect to size, ownership, location, and medicare
volume. Such audit shall include an examination of
payroll records and medicaid cost reports of individual
facilities.
(2) Report.--Not later than August 1, 2002, the
Comptroller General shall submit to Congress a report
on the audits conducted under paragraph (1). Such
report shall include an assessment of the impact of the
increased payments under this subtitle on increased
nursing staff ratios and shall make recommendations as
to whether increased payments under subsection (a)
should be continued.
SEC. 313. APPLICATION OF SNF CONSOLIDATED BILLING REQUIREMENT LIMITED
TO PART A COVERED STAYS.
(a) In General.--Section 1862(a)(18) (42 U.S.C.
1395y(a)(18)) is amended by striking ``or of a part of a
facility that includes a skilled nursing facility (as
determined under regulations),'' and inserting ``during a
period in which the resident is provided covered post-hospital
extended care services (or, for services described in section
1861(s)(2)(D), which are furnished to such an individual
without regard to such period),''.
(b) Conforming Amendments.--(1) Section 1842(b)(6)(E) (42
U.S.C. 1395u(b)(6)(E)) is amended--
(A) by inserting ``by, or under arrangements made
by, a skilled nursing facility'' after ``furnished'';
(B) by striking ``or of a part of a facility that
includes a skilled nursing facility (as determined
under regulations)''; and
(C) by striking ``(without regard to whether or not
the item or service was furnished by the facility, by
others under arrangement with them made by the
facility, under any other contracting or consulting
arrangement, or otherwise)''.
(2) Section 1842(t) (42 U.S.C. 1395u(t)) is amended by
striking ``by a physician'' and ``or of a part of a facility
that includes a skilled nursing facility (as determined under
regulations),''.
(3) Section 1866(a)(1)(H)(ii)(I) (42 U.S.C.
1395cc(a)(1)(H)(ii)(I)) is amended by inserting after ``who is
a resident of the skilled nursing facility'' the following:
``during a period in which the resident is provided covered
post-hospital extended care services (or, for services
described in section 1861(s)(2)(D), that are furnished to such
an individual without regard to such period)''.
(c) Effective Date.--The amendments made by subsections (a)
and (b) shall apply to services furnished on or after January
1, 2001.
(d) Oversight.--The Secretary of Health and Human Services,
through the Office of the Inspector General in the Department
of Health and Human Services or otherwise, shall monitor
payments made under part B of the title XVIII of the Social
Security Act for items and services furnished to residents of
skilled nursing facilities during a time in which the residents
are not being provided medicare covered post-hospital extended
care services to ensure that there is not duplicate billing for
services or excessive services provided.
SEC. 314. ADJUSTMENT OF REHABILITATION RUGS TO CORRECT ANOMALY IN
PAYMENT RATES.
(a) Adjustment for Rehabilitation RUGs.--
(1) In general.--For purposes of computing payments
for covered skilled nursing facility services under
paragraph (1) of section 1888(e) of the Social Security
Act (42 U.S.C. 1395yy(e)) for such services furnished
on or after April 1, 2001, and before the date
described in section 101(c)(2) of BBRA (113 Stat.
1501A-324), the Secretary of Health and Human Services
shall increase by 6.7 percent the adjusted Federal per
diem rate otherwise determined under paragraph (4) of
such section (but for this section) for covered skilled
nursing facility services for RUG-III rehabilitation
groups described in paragraph (2) furnished to an
individual during the period in which such individual
is classified in such a RUG-III category.
(2) Rehabilitation groups described.--The RUG-III
rehabilitation groups for which the adjustment
described in paragraph (1) applies are RUC, RUB, RUA,
RVC, RVB, RVA, RHC, RHB, RHA, RMC, RMB, RMA, RLB, and
RLA, as specified in Tables 3 and 4 of the final rule
published in the Federal Register by the Health Care
Financing Administration on July 31, 2000 (65 Fed. Reg.
46770).
(b) Correction With Respect to Rehabilitation RUGs.--
(1) In general.--Section 101(b) of BBRA (113 Stat.
1501A-324) is amended by striking ``CA1, RHC, RMC, and
RMB'' and inserting ``and CA1''.
(2) Effective date.--The amendment made by
paragraph (1) shall apply to services furnished on or
after April 1, 2001.
(c) Review by Office of Inspector General.--The Inspector
General of the Department of Health and Human Services shall
review the medicare payment structure for services classified
within rehabilitation resource utilization groups (RUGs) (as in
effect after the date of the enactment of the BBRA) to assess
whether payment incentives exist for the delivery of inadequate
care. Not later than October 1, 2001, the Inspector General
shall submit to Congress a report on such review.
SEC. 315. ESTABLISHMENT OF PROCESS FOR GEOGRAPHIC RECLASSIFICATION.
(a) In General.--The Secretary of Health and Human Services
may establish a procedure for the geographic reclassification
of a skilled nursing facility for purposes of payment for
covered skilled nursing facility services under the prospective
payment system established under section 1888(e) of the Social
Security Act (42 U.S.C. 1395yy(e)). Such procedure may be based
upon the method for geographic reclassifications for inpatient
hospitals established under section 1886(d)(10) of the Social
Security Act (42 U.S.C. 1395ww(d)(10)).
(b) Requirement for Skilled Nursing Facility Wage Data.--In
no case may the Secretary implement the procedure under
subsection (a) before such time as the Secretary has collected
data necessary to establish an area wage index for skilled
nursing facilities based on wage data from such facilities.
Subtitle C--Hospice Care
SEC. 321. 5 PERCENT INCREASE IN PAYMENT BASE.
(a) In General.--Section 1814(i)(1)(C)(ii)(VI) (42 U.S.C.
1395f(i)(1)(C)(ii)(VI)) is amended by inserting ``, plus, in
the case of fiscal year 2001, 5.0 percentage points'' before
the semicolon at the end.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to hospice care furnished on or after April 1,
2001. In applying clause (ii) of section 1814(i)(1)(C) of the
Social Security Act (42 U.S.C. 1395f(i)(1)(C)) beginning with
fiscal year 2002, the payment rates in effect under such
section during the period beginning on April 1, 2001, and
ending on September 30, shall be treated as the payment rates
in effect during fiscal year 2001.
(c) No Effect on BBRA Temporary Increase.--The provisions
of this section shall have no effect on the application of
section 131 of BBRA.
(d) Application of Wage Index.--Notwithstanding section
1814(i) of the Social Security Act (42 U.S.C. 1395f(i)), the
Secretary of Health and Human Services shall use 1.0043 as the
hospice wage index value for the Wichita, Kansas Metropolitan
Statistical Area in calculating payments under such section for
a hospice program providing hospice care in such area during
fiscal year 2000. The Secretary may provide for an appropriate
timely lump sum payment to reflect the application of the
previous sentence.
(e) Technical Amendment.--Section 1814(a)(7)(A)(ii) (42
U.S.C. 1395f(a)(7)(A)(ii)) is amended by striking the period at
the end and inserting a semicolon.
SEC. 322. CLARIFICATION OF PHYSICIAN CERTIFICATION.
(a) Certification Based on Normal Course of Illness.--
(1) In general.--Section 1814(a) (42 U.S.C.
1395f(a)) is amended by adding at the end the following
new sentence: ``The certification regarding terminal
illness of an individual under paragraph (7) shall be
based on the physician's or medical director's clinical
judgment regarding the normal course of the
individual's illness.''.
(2) Effective date.--The amendment made by
paragraph (1) shall apply to certifications made on or
after the date of the enactment of this Act.
(b) Study and Report on Physician Certification Requirement
for Hospice Benefits.--
(1) Study.--The Secretary of Health and Human
Services shall conduct a study to examine the
appropriateness of the certification regarding terminal
illness of an individual under section 1814(a)(7) of
the Social Security Act (42 U.S.C. 1395f(a)(7)) that is
required in order for such individual to receive
hospice benefits under the medicare program under title
XVIII of such Act. In conducting such study, the
Secretary shall take into account the effect of the
amendment made by subsection (a).
(2) Report.--Not later than 2 years after the date
of the enactment of this Act, the Secretary of Health
and Human Services shall submit to Congress a report on
the study conducted under paragraph (1), together with
any recommendations for legislation that the Secretary
deems appropriate.
SEC. 323. MEDPAC REPORT ON ACCESS TO, AND USE OF, HOSPICE BENEFIT.
(a) In General.--The Medicare Payment Advisory Commission
shall conduct a study to examine the factors affecting the use
of hospice benefits under the medicare program under title
XVIII of the Social Security Act, including a delay in the time
(relative to death) of entry into a hospice program, and
differences in such use between urban and rural hospice
programs and based upon the presenting condition of the
patient.
(b) Report.--Not later than 18 months after the date of the
enactment of this Act, the Commission shall submit to Congress
a report on the study conducted under subsection (a), together
with any recommendations for legislation that the Commission
deems appropriate.
Subtitle D--Other Provisions
SEC. 331. RELIEF FROM MEDICARE PART A LATE ENROLLMENT PENALTY FOR GROUP
BUY-IN FOR STATE AND LOCAL RETIREES.
(a) In General.--Section 1818 (42 U.S.C. 1395i-2) is
amended--
(1) in subsection (c)(6), by inserting before the
semicolon at the end the following: ``and shall be
subject to reduction in accordance with subsection
(d)(6)''; and
(2) by adding at the end of subsection (d) the
following new paragraph:
``(6)(A) In the case where a State, a political subdivision
of a State, or an agency or instrumentality of a State or
political subdivision thereof determines to pay, for the life
of each individual, the monthly premiums due under paragraph
(1) on behalf of each of the individuals in a qualified State
or local government retiree group who meets the conditions of
subsection (a), the amount of any increase otherwise applicable
under section 1839(b) (as applied and modified by subsection
(c)(6) of this section) with respect to the monthly premium for
benefits under this part for an individual who is a member of
such group shall be reduced by the total amount of taxes paid
under section 3101(b) of the Internal Revenue Code of 1986 by
such individual and under section 3111(b) by the employers of
such individual on behalf of such individual with respect to
employment (as defined in section 3121(b) of such Code).
``(B) For purposes of this paragraph, the term `qualified
State or local government retiree group' means all of the
individuals who retire prior to a specified date that is before
January 1, 2002, from employment in 1 or more occupations or
other broad classes of employees of--
``(i) the State;
``(ii) a political subdivision of the State; or
``(iii) an agency or instrumentality of the State
or political subdivision of the State.''.
(b) Effective Date.--The amendments made by subsection (a)
shall apply to premiums for months beginning with January 1,
2002.
TITLE IV--PROVISIONS RELATING TO PART B
Subtitle A--Hospital Outpatient Services
SEC. 401. REVISION OF HOSPITAL OUTPATIENT PPS PAYMENT UPDATE.
(a) In General.--Section 1833(t)(3)(C)(iii) (42 U.S.C.
1395l(t)(3)(C)(iii)) is amended by striking ``in each of 2000,
2001, and 2002'' and inserting ``in each of 2000 and 2002''.
(b) Adjustment for Case Mix Changes.--
(1) In general.--Section 1833(t)(3)(C) (42 U.S.C.
1395l(t)(3)(C)) is amended--
(A) by redesignating clause (iii) as clause
(iv); and
(B) by inserting after clause (ii) the
following new clause:
``(iii) Adjustment for service mix
changes.--Insofar as the Secretary
determines that the adjustments for
service mix under paragraph (2) for a
previous year (or estimates that such
adjustments for a future year) did (or
are likely to) result in a change in
aggregate payments under this
subsection during the year that are a
result of changes in the coding or
classification of covered OPD services
that do not reflect real changes in
service mix, the Secretary may adjust
the conversion factor computed under
this subparagraph for subsequent years
so as to eliminate the effect of such
coding or classification changes.''.
(2) Effective date.--The amendments made by
paragraph (1) shall take effect as if included in the
enactment of BBA.
(c) Special Rule for Payment for 2001.--Notwithstanding the
amendment made by subsection (a), for purposes of making
payments under section 1833(t) of the Social Security Act (42
U.S.C. 1395l(t)) for covered OPD services furnished during
2001, the medicare OPD fee schedule amount under such section--
(1) for services furnished on or after January 1,
2001, and before April 1, 2001, shall be the medicare
OPD fee schedule amount for 2001 as determined under
the provisions of law in effect on the day before the
date of the enactment of this Act; and
(2) for services furnished on or after April 1,
2001, and before January 1, 2002, shall be the fee
schedule amount (as determined taking into account the
amendment made by subsection (a)), increased by a
transitional percentage allowance equal to 0.32 percent
(to account for the timing of implementation of the
full market basket update).
SEC. 402. CLARIFYING PROCESS AND STANDARDS FOR DETERMINING ELIGIBILITY
OF DEVICES FOR PASS-THROUGH PAYMENTS UNDER HOSPITAL
OUTPATIENT PPS.
(a) In General.--Section 1833(t)(6) (42 U.S.C. 1395l(t)(6))
is amended--
(1) by redesignating subparagraphs (C) and (D) as
subparagraphs (D) and (E), respectively; and
(2) by striking subparagraph (B) and inserting the
following new subparagraphs:
``(B) Use of categories in determining
eligibility of a device for pass-through
payments.--The following provisions apply for
purposes of determining whether a medical
device qualifies for additional payments under
clause (ii) or (iv) of subparagraph (A):
``(i) Establishment of initial
categories.--
``(I) In general.--The
Secretary shall initially
establish under this clause
categories of medical devices
based on type of device by
April 1, 2001. Such categories
shall be established in a
manner such that each medical
device that meets the
requirements of clause (ii) or
(iv) of subparagraph (A) as of
January 1, 2001, is included in
such a category and no such
device is included in more than
one category. For purposes of
the preceding sentence, whether
a medical device meets such
requirements as of such date
shall be determined on the
basis of the program memoranda
issued before such date.
``(II) Authorization of
implementation other than
through regulations.--The
categories may be established
under this clause by program
memorandum or otherwise, after
consultation with groups
representing hospitals,
manufacturers of medical
devices, and other affected
parties.
``(ii) Establishing criteria for
additional categories.--
``(I) In general.--The
Secretary shall establish
criteria that will be used for
creation of additional
categories (other than those
established under clause (i))
through rulemaking (which may
include use of an interim final
rule with comment period).
``(II) Standard.--Such
categories shall be established
under this clause in a manner
such that no medical device is
described by more than one
category. Such criteria shall
include a test of whether the
average cost of devices that
would be included in a category
and are in use at the time the
category is established is not
insignificant, as described in
subparagraph (A)(iv)(II).
``(III) Deadline.--Criteria
shall first be established
under this clause by July 1,
2001. The Secretary may
establish in compelling
circumstances categories under
this clause before the date
such criteria are established.
``(IV) Adding categories.--
The Secretary shall promptly
establish a new category of
medical devices under this
clause for any medical device
that meets the requirements of
subparagraph (A)(iv) and for
which none of the categories in
effect (or that were previously
in effect) is appropriate.
``(iii) Period for which category
is in effect.--A category of medical
devices established under clause (i) or
(ii) shall be in effect for a period of
at least 2 years, but not more than 3
years, that begins--
``(I) in the case of a
category established under
clause (i), on the first date
on which payment was made under
this paragraph for any device
described by such category
(including payments made during
the period before April 1,
2001); and
``(II) in the case of any
other category, on the first
date on which payment is made
under this paragraph for any
medical device that is
described by such category.
``(iv) Requirements treated as
met.--A medical device shall be treated
as meeting the requirements of
subparagraph (A)(iv), regardless of
whether the device meets the
requirement of subclause (I) of such
subparagraph, if--
``(I) the device is
described by a category
established and in effect under
clause (i); or
``(II) the device is
described by a category
established and in effect under
clause (ii) and an application
under section 515 of the
Federal Food, Drug, and
Cosmetic Act has been approved
with respect to the device, or
the device has been cleared for
market under section 510(k) of
such Act, or the device is
exempt from the requirements of
section 510(k) of such Act
pursuant to subsection (l) or
(m) of section 510 of such Act
or section 520(g) of such Act.
Nothing in this clause shall be
construed as requiring an application
or prior approval (other than that
described in subclause (II)) in order
for a covered device described by a
category to qualify for payment under
this paragraph.
``(C) Limited period of payment.--
``(i) Drugs and biologicals.--The
payment under this paragraph with
respect to a drug or biological shall
only apply during a period of at least
2 years, but not more than 3 years,
that begins--
``(I) on the first date
this subsection is implemented
in the case of a drug or
biological described in clause
(i), (ii), or (iii) of
subparagraph (A) and in the
case of a drug or biological
described in subparagraph
(A)(iv) and for which payment
under this part is made as an
outpatient hospital service
before such first date; or
``(II) in the case of a
drug or biological described in
subparagraph (A)(iv) not
described in subclause (I), on
the first date on which payment
is made under this part for the
drug or biological as an
outpatient hospital service.
``(ii) Medical devices.--Payment
shall be made under this paragraph with
respect to a medical device only if
such device--
``(I) is described by a
category of medical devices
established and in effect under
subparagraph (B); and
``(II) is provided as part
of a service (or group of
services) paid for under this
subsection and provided during
the period for which such
category is in effect under
such subparagraph.''.
(b) Conforming Amendments.--Section 1833(t) (42 U.S.C.
1395l(t)) is further amended--
(1) in paragraph (6)(A)(iv)(II), by striking ``the
cost of the device, drug, or biological'' and inserting
``the cost of the drug or biological or the average
cost of the category of devices'';
(2) in paragraph (6)(D) (as redesignated by
subsection (a)(1)), by striking ``subparagraph
(D)(iii)'' in the matter preceding clause (i) and
inserting ``subparagraph (E)(iii)''; and
(3) in paragraph (12)(E), by striking ``additional
payments (consistent with paragraph (6)(B))'' and
inserting ``additional payments, the determination and
deletion of initial and new categories (consistent with
subparagraphs (B) and (C) of paragraph (6))''.
(c) Effective Date.--The amendments made by this section
take effect on the date of the enactment of this Act.
(d) Transition.--
(1) In general.--In the case of a medical device
provided as part of a service (or group of services)
furnished during the period before initial categories
are implemented under subparagraph (B)(i) of section
1833(t)(6) of the Social Security Act (as amended by
subsection (a)), payment shall be made for such device
under such section in accordance with the provisions in
effect before the date of the enactment of this Act. In
addition, beginning on the date that is 30 days after
the date of the enactment of this Act, payment shall be
made for such a device that is not included in a
program memorandum described in such subparagraph if
the Secretary of Health and Human Services determines
that the device (including a device that would have
been included in such program memoranda but for the
requirement of subparagraph (A)(iv)(I) of that section)
is likely to be described by such an initial category.
(2) Application of current process.--
Notwithstanding any other provision of law, the
Secretary shall continue to accept applications with
respect to medical devices under the process
established pursuant to paragraph (6) of section
1833(t) of the Social Security Act (as in effect on the
day before the date of the enactment of this Act)
through December 1, 2000, and any device--
(A) with respect to which an application
was submitted (pursuant to such process) on or
before such date; and
(B) that meets the requirements of clause
(ii) or (iv) of subparagraph (A) of such
paragraph (as determined pursuant to such
process),
shall be treated as a device with respect to which an
initial category is required to be established under
subparagraph (B)(i) of such paragraph (as amended by
subsection (a)(2)).
SEC. 403. APPLICATION OF OPD PPS TRANSITIONAL CORRIDOR PAYMENTS TO
CERTAIN HOSPITALS THAT DID NOT SUBMIT A 1996 COST
REPORT.
(a) In General.--Section 1833(t)(7)(F)(ii)(I) (42 U.S.C.
1395l(t)(7)(F)(ii)(I)) is amended by inserting ``(or in the
case of a hospital that did not submit a cost report for such
period, during the first subsequent cost reporting period
ending before 2001 for which the hospital submitted a cost
report)'' after ``1996''.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect as if included in the enactment of BBRA.
SEC. 404. APPLICATION OF RULES FOR DETERMINING PROVIDER-BASED STATUS
FOR CERTAIN ENTITIES.
(a) Grandfather.--Notwithstanding any other provision of
law, effective October 1, 2000, for purposes of provider-based
status under title XVIII of the Social Security Act--
(1) any facility or organization that is treated as
provider-based in relation to a hospital or critical
access hospital under such title as of such date shall
continue to be treated as provider-based in relation to
such hospital or critical access hospital under such
title until October 1, 2002; and
(2) the requirements, limitations, and exclusions
specified in subsections (d), (e), (f), and (h) of
section 413.65 of title 42, Code of Federal
Regulations, shall not apply to such facility or
organization in relation to such hospital or critical
access hospital until October 1, 2002.
(b) Continuing Criteria for Meeting Geographic Location
Requirement.--Except as provided in subsection (a), in making
determinations of provider-based status on or after October 1,
2000, the following rules shall apply:
(1) The facility or organization shall be treated
as satisfying any requirements and standards for
geographic location in relation to a hospital or a
critical access hospital if the facility or
organization--
(A) satisfies the requirements of section
413.65(d)(7) of title 42, Code of Federal
Regulations; or
(B) is located not more than 35 miles from
the main campus of the hospital or critical
access hospital.
(2) The facility or organization shall be treated
as satisfying any of the requirements and standards for
geographic location in relation to a hospital or a
critical access hospital if the facility or
organization is owned and operated by a hospital or
critical access hospital that--
(A) is owned or operated by a unit of State
or local government, is a public or private
nonprofit corporation that is formally granted
governmental powers by a unit of State or local
government, or is a private hospital that has a
contract with a State or local government that
includes the operation of clinics located off
the main campus of the hospital to assure
access in a well-defined service area to health
care services for low-income individuals who
are not entitled to benefits under title XVIII
(or medical assistance under a State plan under
title XIX) of the Social Security Act; and
(B) has a disproportionate share adjustment
percentage (as determined under section
1886(d)(5)(F) of such Act (42 U.S.C.
1395ww(d)(5)(F))) greater than 11.75 percent or
is described in clause (i)(II) of such section.
(c) Temporary Criteria.--For purposes of title XVIII of the
Social Security Act, a facility or organization for which a
determination of provider-based status in relation to a
hospital or critical access hospital is requested on or after
October 1, 2000, and before October 1, 2002, shall be treated
as having provider-based status in relation to such a hospital
or a critical access hospital for any period before a
determination is made with respect to such status pursuant to
such request.
(d) Definitions.--For purposes of this section, the terms
``hospital'' and ``critical access hospital'' have the meanings
given such terms in subsections (e) and (mm)(1), respectively,
of section 1861 of the Social Security Act (42 U.S.C. 1395x).
SEC. 405. TREATMENT OF CHILDREN'S HOSPITALS UNDER PROSPECTIVE PAYMENT
SYSTEM.
(a) In General.--Section 1833(t) (42 U.S.C. 1395l(t)) is
amended--
(1) in the heading of paragraph (7)(D)(ii), by
inserting ``and children's hospitals'' after ``cancer
hospitals''; and
(2) in paragraphs (7)(D)(ii) and (11), by striking
``section 1886(d)(1)(B)(v)'' and inserting ``clause
(iii) or (v) of section 1886(d)(1)(B)''.
(b) Effective Date.--The amendments made by subsection (a)
shall apply as if included in the enactment of section 202 of
BBRA (113 Stat. 1501A-342).
SEC. 406. INCLUSION OF TEMPERATURE MONITORED CRYOABLATION IN
TRANSITIONAL PASS-THROUGH FOR CERTAIN MEDICAL
DEVICES, DRUGS, AND BIOLOGICALS UNDER OPD PPS.
(a) In General.--Section 1833(t)(6)(A)(ii) (42 U.S.C.
1395l(t)(6)(A)(ii)) is amended by inserting ``or temperature
monitored cryoablation'' after ``device of brachytherapy''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to devices furnished on or after April 1, 2001.
Subtitle B--Provisions Relating to Physicians' Services
SEC. 411. GAO STUDIES RELATING TO PHYSICIANS' SERVICES.
(a) Study of Specialist Physicians' Services Furnished in
Physicians' Offices and Hospital Outpatient Department
Services.--
(1) Study.--The Comptroller General of the United
States shall conduct a study to examine the
appropriateness of furnishing in physicians' offices
specialist physicians' services (such as
gastrointestinal endoscopic physicians' services) which
are ordinarily furnished in hospital outpatient
departments. In conducting this study, the Comptroller
General shall--
(A) review available scientific and
clinical evidence about the safety of
performing procedures in physicians' offices
and hospital outpatient departments;
(B) assess whether resource-based practice
expense relative values established by the
Secretary of Health and Human Services under
the medicare physician fee schedule under
section 1848 of the Social Security Act (42
U.S.C. 1395w-4) for such specialist physicians'
services furnished in physicians' offices and
hospital outpatient departments create an
incentive to furnish such services in
physicians' offices instead of hospital
outpatient departments; and
(C) assess the implications for access to
care for medicare beneficiaries if the medicare
program were not to cover such services in
physicians' offices.
(2) Report.--Not later than July 1, 2001, the
Comptroller General shall submit to Congress a report
on such study and include such recommendations as the
Comptroller General determines to be appropriate.
(b) Study of the Resource-Based Practice Expense System.--
(1) Study.--The Comptroller General of the United
States shall conduct a study on the refinements to the
practice expense relative value units during the
transition to a resource-based practice expense system
for physician payments under the medicare program under
title XVIII of the Social Security Act. Such study
shall examine how the Secretary of Health and Human
Services has accepted and used the practice expense
data submitted under section 212 of BBRA (113 Stat.
1501A-350).
(2) Report.--Not later than July 1, 2001, the
Comptroller General shall submit to Congress a report
on the study conducted under paragraph (1) together
with recommendations regarding--
(A) improvements in the process for
acceptance and use of practice expense data
under section 212 of BBRA;
(B) any change or adjustment that is
appropriate to ensure full access to a spectrum
of care for beneficiaries under the medicare
program; and
(C) the appropriateness of payments to
physicians.
SEC. 412. PHYSICIAN GROUP PRACTICE DEMONSTRATION.
(a) In General.--Title XVIII is amended by inserting after
section 1866 the following new sections:
``demonstration of application of physician volume increases to group
practices
``Sec. 1866A. (a) Demonstration Program Authorized.--
``(1) In general.--The Secretary shall conduct
demonstration projects to test and, if proven
effective, expand the use of incentives to health care
groups participating in the program under this title
that--
``(A) encourage coordination of the care
furnished to individuals under the programs
under parts A and B by institutional and other
providers, practitioners, and suppliers of
health care items and services;
``(B) encourage investment in
administrative structures and processes to
ensure efficient service delivery; and
``(C) reward physicians for improving
health outcomes.
Such projects shall focus on the efficiencies of
furnishing health care in a group-practice setting as
compared to the efficiencies of furnishing health care
in other health care delivery systems.
``(2) Administration by contract.--Except as
otherwise specifically provided, the Secretary may
administer the program under this section in accordance
with section 1866B.
``(3) Definitions.--For purposes of this section,
terms have the following meanings:
``(A) Physician.--Except as the Secretary
may otherwise provide, the term `physician'
means any individual who furnishes services
which may be paid for as physicians' services
under this title.
``(B) Health care group.--The term `health
care group' means a group of physicians (as
defined in subparagraph (A)) organized at least
in part for the purpose of providing
physicians' services under this title. As the
Secretary finds appropriate, a health care
group may include a hospital and any other
individual or entity furnishing items or
services for which payment may be made under
this title that is affiliated with the health
care group under an arrangement structured so
that such individual or entity participates in
a demonstration under this section and will
share in any bonus earned under subsection (d).
``(b) Eligibility Criteria.--
``(1) In general.--The Secretary is authorized to
establish criteria for health care groups eligible to
participate in a demonstration under this section,
including criteria relating to numbers of health care
professionals in, and of patients served by, the group,
scope of services provided, and quality of care.
``(2) Payment method.--A health care group
participating in the demonstration under this section
shall agree with respect to services furnished to
beneficiaries within the scope of the demonstration (as
determined under subsection (c))--
``(A) to be paid on a fee-for-service
basis; and
``(B) that payment with respect to all such
services furnished by members of the health
care group to such beneficiaries shall (where
determined appropriate by the Secretary) be
made to a single entity.
``(3) Data reporting.--A health care group
participating in a demonstration under this section
shall report to the Secretary such data, at such times
and in such format as the Secretary requires, for
purposes of monitoring and evaluation of the
demonstration under this section.
``(c) Patients Within Scope of Demonstration.--
``(1) In general.--The Secretary shall specify, in
accordance with this subsection, the criteria for
identifying those patients of a health care group who
shall be considered within the scope of the
demonstration under this section for purposes of
application of subsection (d) and for assessment of the
effectiveness of the group in achieving the objectives
of this section.
``(2) Other criteria.--The Secretary may establish
additional criteria for inclusion of beneficiaries
within a demonstration under this section, which may
include frequency of contact with physicians in the
group or other factors or criteria that the Secretary
finds to be appropriate.
``(3) Notice requirements.--In the case of each
beneficiary determined to be within the scope of a
demonstration under this section with respect to a
specific health care group, the Secretary shall ensure
that such beneficiary is notified of the incentives,
and of any waivers of coverage or payment rules,
applicable to such group under such demonstration.
``(d) Incentives.--
``(1) Performance target.--The Secretary shall
establish for each health care group participating in a
demonstration under this section--
``(A) a base expenditure amount, equal to
the average total payments under parts A and B
for patients served by the health care group on
a fee-for-service basis in a base period
determined by the Secretary; and
``(B) an annual per capita expenditure
target for patients determined to be within the
scope of the demonstration, reflecting the base
expenditure amount adjusted for risk and
expected growth rates.
``(2) Incentive bonus.--The Secretary shall pay to
each participating health care group (subject to
paragraph (4)) a bonus for each year under the
demonstration equal to a portion of the medicare
savings realized for such year relative to the
performance target.
``(3) Additional bonus for process and outcome
improvements.--At such time as the Secretary has
established appropriate criteria based on evidence the
Secretary determines to be sufficient, the Secretary
shall also pay to a participating health care group
(subject to paragraph (4)) an additional bonus for a
year, equal to such portion as the Secretary may
designate of the saving to the program under this title
resulting from process improvements made by and patient
outcome improvements attributable to activities of the
group.
``(4) Limitation.--The Secretary shall limit bonus
payments under this section as necessary to ensure that
the aggregate expenditures under this title (inclusive
of bonus payments) with respect to patients within the
scope of the demonstration do not exceed the amount
which the Secretary estimates would be expended if the
demonstration projects under this section were not
implemented.
``provisions for administration of demonstration program
``Sec. 1866B. (a) General Administrative Authority.--
``(1) Beneficiary eligibility.--Except as otherwise
provided by the Secretary, an individual shall only be
eligible to receive benefits under the program under
section 1866A (in this section referred to as the
`demonstration program') if such individual--
``(A) is enrolled under the program under
part B and entitled to benefits under part A;
and
``(B) is not enrolled in a Medicare+Choice
plan under part C, an eligible organization
under a contract under section 1876 (or a
similar organization operating under a
demonstration project authority), an
organization with an agreement under section
1833(a)(1)(A), or a PACE program under section
1894.
``(2) Secretary's discretion as to scope of
program.--The Secretary may limit the implementation of
the demonstration program to--
``(A) a geographic area (or areas) that the
Secretary designates for purposes of the
program, based upon such criteria as the
Secretary finds appropriate;
``(B) a subgroup (or subgroups) of
beneficiaries or individuals and entities
furnishing items or services (otherwise
eligible to participate in the program),
selected on the basis of the number of such
participants that the Secretary finds
consistent with the effective and efficient
implementation of the program;
``(C) an element (or elements) of the
program that the Secretary determines to be
suitable for implementation; or
``(D) any combination of any of the limits
described in subparagraphs (A) through (C).
``(3) Voluntary receipt of items and services.--
Items and services shall be furnished to an individual
under the demonstration program only at the
individual's election.
``(4) Agreements.--The Secretary is authorized to
enter into agreements with individuals and entities to
furnish health care items and services to beneficiaries
under the demonstration program.
``(5) Program standards and criteria.--The
Secretary shall establish performance standards for the
demonstration program including, as applicable,
standards for quality of health care items and
services, cost-effectiveness, beneficiary satisfaction,
and such other factors as the Secretary finds
appropriate. The eligibility of individuals or entities
for the initial award, continuation, and renewal of
agreements to provide health care items and services
under the program shall be conditioned, at a minimum,
on performance that meets or exceeds such standards.
``(6) Administrative review of decisions affecting
individuals and entities furnishing services.--An
individual or entity furnishing services under the
demonstration program shall be entitled to a review by
the program administrator (or, if the Secretary has not
contracted with a program administrator, by the
Secretary) of a decision not to enter into, or to
terminate, or not to renew, an agreement with the
entity to provide health care items or services under
the program.
``(7) Secretary's review of marketing materials.--
An agreement with an individual or entity furnishing
services under the demonstration program shall require
the individual or entity to guarantee that it will not
distribute materials that market items or services
under the program without the Secretary's prior review
and approval.
``(8) Payment in full.--
``(A) In general.--Except as provided in
subparagraph (B), an individual or entity
receiving payment from the Secretary under a
contract or agreement under the demonstration
program shall agree to accept such payment as
payment in full, and such payment shall be in
lieu of any payments to which the individual or
entity would otherwise be entitled under this
title.
``(B) Collection of deductibles and
coinsurance.--Such individual or entity may
collect any applicable deductible or
coinsurance amount from a beneficiary.
``(b) Contracts for Program Administration.--
``(1) In general.--The Secretary may administer the
demonstration program through a contract with a program
administrator in accordance with the provisions of this
subsection.
``(2) Scope of program administrator contracts.--
The Secretary may enter into such contracts for a
limited geographic area, or on a regional or national
basis.
``(3) Eligible contractors.--The Secretary may
contract for the administration of the program with--
``(A) an entity that, under a contract
under section 1816 or 1842, determines the
amount of and makes payments for health care
items and services furnished under this title;
or
``(B) any other entity with substantial
experience in managing the type of program
concerned.
``(4) Contract award, duration, and renewal.--
``(A) In general.--A contract under this
subsection shall be for an initial term of up
to three years, renewable for additional terms
of up to three years.
``(B) Noncompetitive award and renewal for
entities administering part a or part b
payments.--The Secretary may enter or renew a
contract under this subsection with an entity
described in paragraph (3)(A) without regard to
the requirements of section 5 of title 41,
United States Code.
``(5) Applicability of federal acquisition
regulation.--The Federal Acquisition Regulation shall
apply to program administration contracts under this
subsection.
``(6) Performance standards.--The Secretary shall
establish performance standards for the program
administrator including, as applicable, standards for
the quality and cost-effectiveness of the program
administered, and such other factors as the Secretary
finds appropriate. The eligibility of entities for the
initial award, continuation, and renewal of program
administration contracts shall be conditioned, at a
minimum, on performance that meets or exceeds such
standards.
``(7) Functions of program administrator.--A
program administrator shall perform any or all of the
following functions, as specified by the Secretary:
``(A) Agreements with entities furnishing
health care items and services.--Determine the
qualifications of entities seeking to enter or
renew agreements to provide services under the
demonstration program, and as appropriate enter
or renew (or refuse to enter or renew) such
agreements on behalf of the Secretary.
``(B) Establishment of payment rates.--
Negotiate or otherwise establish, subject to
the Secretary's approval, payment rates for
covered health care items and services.
``(C) Payment of claims or fees.--
Administer payments for health care items or
services furnished under the program.
``(D) Payment of bonuses.--Using such
guidelines as the Secretary shall establish,
and subject to the approval of the Secretary,
make bonus payments as described in subsection
(c)(2)(A)(ii) to entities furnishing items or
services for which payment may be made under
the program.
``(E) Oversight.--Monitor the compliance of
individuals and entities with agreements under
the program with the conditions of
participation.
``(F) Administrative review.--Conduct
reviews of adverse determinations specified in
subsection (a)(6).
``(G) Review of marketing materials.--
Conduct a review of marketing materials
proposed by an entity furnishing services under
the program.
``(H) Additional functions.--Perform such
other functions as the Secretary may specify.
``(8) Limitation of liability.--The provisions of
section 1157(b) shall apply with respect to activities
of contractors and their officers, employees, and
agents under a contract under this subsection.
``(9) Information sharing.--Notwithstanding section
1106 and section 552a of title 5, United States Code,
the Secretary is authorized to disclose to an entity
with a program administration contract under this
subsection such information (including medical
information) on individuals receiving health care items
and services under the program as the entity may
require to carry out its responsibilities under the
contract.
``(c) Rules Applicable to Both Program Agreements and
Program Administration Contracts.--
``(1) Records, reports, and audits.--The Secretary
is authorized to require entities with agreements to
provide health care items or services under the
demonstration program, and entities with program
administration contracts under subsection (b), to
maintain adequate records, to afford the Secretary
access to such records (including for audit purposes),
and to furnish such reports and other materials
(including audited financial statements and performance
data) as the Secretary may require for purposes of
implementation, oversight, and evaluation of the
program and of individuals' and entities' effectiveness
in performance of such agreements or contracts.
``(2) Bonuses.--Notwithstanding any other provision
of law, but subject to subparagraph (B)(ii), the
Secretary may make bonus payments under the
demonstration program from the Federal Health Insurance
Trust Fund and the Federal Supplementary Medical
Insurance Trust Fund in amounts that do not exceed the
amounts authorized under the program in accordance with
the following:
``(A) Payments to program administrators.--
The Secretary may make bonus payments under the
program to program administrators.
``(B) Payments to entities furnishing
services.--
``(i) In general.--Subject to
clause (ii), the Secretary may make
bonus payments to individuals or
entities furnishing items or services
for which payment may be made under the
demonstration program, or may authorize
the program administrator to make such
bonus payments in accordance with such
guidelines as the Secretary shall
establish and subject to the
Secretary's approval.
``(ii) Limitations.--The Secretary
may condition such payments on the
achievement of such standards related
to efficiency, improvement in processes
or outcomes of care, or such other
factors as the Secretary determines to
be appropriate.
``(3) Antidiscrimination limitation.--The Secretary
shall not enter into an agreement with an entity to
provide health care items or services under the
demonstration program, or with an entity to administer
the program, unless such entity guarantees that it will
not deny, limit, or condition the coverage or provision
of benefits under the program, for individuals eligible
to be enrolled under such program, based on any health
status-related factor described in section 2702(a)(1)
of the Public Health Service Act.
``(d) Limitations on Judicial Review.--The following
actions and determinations with respect to the demonstration
program shall not be subject to review by a judicial or
administrative tribunal:
``(1) Limiting the implementation of the program
under subsection (a)(2).
``(2) Establishment of program participation
standards under subsection (a)(5) or the denial or
termination of, or refusal to renew, an agreement with
an entity to provide health care items and services
under the program.
``(3) Establishment of program administration
contract performance standards under subsection (b)(6),
the refusal to renew a program administration contract,
or the noncompetitive award or renewal of a program
administration contract under subsection (b)(4)(B).
``(4) Establishment of payment rates, through
negotiation or otherwise, under a program agreement or
a program administration contract.
``(5) A determination with respect to the program
(where specifically authorized by the program authority
or by subsection (c)(2))--
``(A) as to whether cost savings have been
achieved, and the amount of savings; or
``(B) as to whether, to whom, and in what
amounts bonuses will be paid.
``(e) Application Limited to Parts A and B.--None of the
provisions of this section or of the demonstration program
shall apply to the programs under part C.
``(f) Reports to Congress.--Not later than two years after
the date of the enactment of this section, and biennially
thereafter for six years, the Secretary shall report to
Congress on the use of authorities under the demonstration
program. Each report shall address the impact of the use of
those authorities on expenditures, access, and quality under
the programs under this title.''.
(b) GAO Report.--Not later than 2 years after the date on
which the demonstration project under section 1866A of the
Social Security Act, as added by subsection (a), is
implemented, the Comptroller General of the United States shall
submit to Congress a report on such demonstration project. The
report shall include such recommendations with respect to
changes to the demonstration project that the Comptroller
General determines appropriate.
SEC. 413. STUDY ON ENROLLMENT PROCEDURES FOR GROUPS THAT RETAIN
INDEPENDENT CONTRACTOR PHYSICIANS.
(a) In General.--The Comptroller General of the United
States shall conduct a study of the current medicare enrollment
process for groups that retain independent contractor
physicians with particular emphasis on hospital-based
physicians, such as emergency department staffing groups. In
conducting the evaluation, the Comptroller General shall
consult with groups that retain independent contractor
physicians and shall--
(1) review the issuance of individual medicare
provider numbers and the possible medicare program
integrity vulnerabilities of the current process;
(2) review direct and indirect costs associated
with the current process incurred by the medicare
program and groups that retain independent contractor
physicians;
(3) assess the effect on program integrity by the
enrollment of groups that retain independent contractor
hospital-based physicians; and
(4) develop suggested procedures for the enrollment
of these groups.
(b) Report.--Not later than 1 year after the date of the
enactment of this Act, the Comptroller General shall submit to
Congress a report on the study conducted under subsection (a).
Subtitle C--Other Services
SEC. 421. 1-YEAR EXTENSION OF MORATORIUM ON THERAPY CAPS; REPORT ON
STANDARDS FOR SUPERVISION OF PHYSICAL THERAPY
ASSISTANTS.
(a) In General.--Section 1833(g)(4) (42 U.S.C. 1395l(g)(4))
is amended by striking ``2000 and 2001.'' and inserting ``2000,
2001, and 2002.''.
(b) Conforming Amendment To Continue Focused Medical
Reviews of Claims During Moratorium Period.--Section 221(a)(2)
of BBRA (113 Stat. 1501A-351) is amended by striking ``(under
the amendment made by paragraph (1)(B))''.
(c) Study on Standards for Supervision of Physical
Therapist Assistants.--
(1) Study.--The Secretary of Health and Human
Services shall conduct a study of the implications--
(A) of eliminating the ``in the room''
supervision requirement for medicare payment
for services of physical therapy assistants who
are supervised by physical therapists; and
(B) of such requirement on the cap imposed
under section 1833(g) of the Social Security
Act (42 U.S.C. 1395l(g)) on physical therapy
services.
(2) Report.--Not later than 18 months after the
date of the enactment of this Act, the Secretary shall
submit to Congress a report on the study conducted
under paragraph (1).
SEC. 422. UPDATE IN RENAL DIALYSIS COMPOSITE RATE.
(a) Update.--
(1) In general.--The last sentence of section
1881(b)(7) (42 U.S.C. 1395rr(b)(7)) is amended by
striking ``for such services furnished on or after
January 1, 2001, by 1.2 percent'' and inserting ``for
such services furnished on or after January 1, 2001, by
2.4 percent''.
(2) Prohibition on exceptions.--
(A) In general.--Subject to subparagraphs
(B) and (C), the Secretary of Health and Human
Services may not provide for an exception under
section 1881(b)(7) of the Social Security Act
(42 U.S.C. 1395rr(b)(7)) on or after December
31, 2000.
(B) Deadline for new applications.--In the
case of a facility that during 2000 did not
file for an exception rate under such section,
the facility may submit an application for an
exception rate by not later than July 1, 2001.
(C) Protection of approved exception
rates.--Any exception rate under such section
in effect on December 31, 2000 (or, in the case
of an application under subparagraph (B), as
approved under such application) shall continue
in effect so long as such rate is greater than
the composite rate as updated by the amendment
made by paragraph (1).
(b) Development of ESRD Market Basket.--
(1) Development.--The Secretary of Health and Human
Services shall collect data and develop an ESRD market
basket whereby the Secretary can estimate, before the
beginning of a year, the percentage by which the costs
for the year of the mix of labor and nonlabor goods and
services included in the ESRD composite rate under
section 1881(b)(7) of the Social Security Act (42
U.S.C. 1395rr(b)(7)) will exceed the costs of such mix
of goods and services for the preceding year. In
developing such index, the Secretary may take into
account measures of changes in--
(A) technology used in furnishing dialysis
services;
(B) the manner or method of furnishing
dialysis services; and
(C) the amounts by which the payments under
such section for all services billed by a
facility for a year exceed the aggregate
allowable audited costs of such services for
such facility for such year.
(2) Report.--The Secretary of Health and Human
Services shall submit to Congress a report on the index
developed under paragraph (1) no later than July 1,
2002, and shall include in the report recommendations
on the appropriateness of an annual or periodic update
mechanism for renal dialysis services under the
medicare program under title XVIII of the Social
Security Act based on such index.
(c) Inclusion of Additional Services in Composite Rate.--
(1) Development.--The Secretary of Health and Human
Services shall develop a system which includes, to the
maximum extent feasible, in the composite rate used for
payment under section 1881(b)(7) of the Social Security
Act (42 U.S.C. 1395rr(b)(7)), payment for clinical
diagnostic laboratory tests and drugs (including drugs
paid under section 1881(b)(11)(B) of such Act (42
U.S.C. 1395rr(b)(11)(B)) that are routinely used in
furnishing dialysis services to medicare beneficiaries
but which are currently separately billable by renal
dialysis facilities.
(2) Report.--The Secretary shall include, as part
of the report submitted under subsection (b)(2), a
report on the system developed under paragraph (1) and
recommendations on the appropriateness of incorporating
the system into medicare payment for renal dialysis
services.
(d) GAO Study on Access to Services.--
(1) Study.--The Comptroller General of the United
States shall study access of medicare beneficiaries to
renal dialysis services. Such study shall include
whether there is a sufficient supply of facilities to
furnish needed renal dialysis services, whether
medicare payment levels are appropriate, taking into
account audited costs of facilities for all services
furnished, to ensure continued access to such services,
and improvements in access (and quality of care) that
may result in the increased use of long nightly and
short daily hemodialysis modalities.
(2) Report.--Not later than January 1, 2003, the
Comptroller General shall submit to Congress a report
on the study conducted under paragraph (1).
(e) Special Rule for Payment for 2001.--Notwithstanding the
amendment made by subsection (a)(1), for purposes of making
payments under section 1881(b) of the Social Security Act (42
U.S.C. 1395rr(b)) for dialysis services furnished during 2001,
the composite rate payment under paragraph (7) of such
section--
(1) for services furnished on or after January 1,
2001, and before April 1, 2001, shall be the composite
rate payment determined under the provisions of law in
effect on the day before the date of the enactment of
this Act; and
(2) for services furnished on or after April 1,
2001, and before January 1, 2002, shall be the
composite rate payment (as determined taking into
account the amendment made by subsection (a)(1))
increased by a transitional percentage allowance equal
to 0.39 percent (to account for the timing of
implementation of the CPI update).
SEC. 423. PAYMENT FOR AMBULANCE SERVICES.
(a) Restoration of Full CPI Increase for 2001.--
(1) In general.--Section 1834(l)(3) (42 U.S.C.
1395m(l)(3)) is amended by striking ``reduced in the
case of 2001 and 2002'' each place it appears and
inserting ``reduced in the case of 2002''.
(2) Special rule for payment for 2001.--
Notwithstanding the amendment made by paragraph (1),
for purposes of making payments for ambulance services
under part B of title XVIII of the Social Security Act,
for services furnished during 2001, the ``percentage
increase in the consumer price index'' specified in
section 1834(l)(3)(B) of such Act (42 U.S.C.
1395m(l)(3)(B))--
(A) for services furnished on or after
January 1, 2001, and before July 1, 2001, shall
be the percentage increase for 2001 as
determined under the provisions of law in
effect on the day before the date of the
enactment of this Act; and
(B) for services furnished on or after July
1, 2001, and before January 1, 2002, shall be
equal to 4.7 percent.
(b) Mileage Payments.--
(1) In general.--Section 1834(l)(2)(E) (42 U.S.C.
1395m(l)(2)(E)) is amended by inserting before the
period at the end the following: ``, except that such
phase-in shall provide for full payment of any national
mileage rate for ambulance services provided by
suppliers that are paid by carriers in any of the 50
States where payment by a carrier for such services for
all such suppliers in such State did not, prior to the
implementation of the fee schedule, include a separate
amount for all mileage within the county from which the
beneficiary is transported''.
(2) Effective date.--The amendment made by
paragraph (1) shall apply to services furnished on or
after July 1, 2001.
SEC. 424. AMBULATORY SURGICAL CENTERS.
(a) Delay in Implementation of Prospective Payment
System.--The Secretary of Health and Human Services may not
implement a revised prospective payment system for services of
ambulatory surgical facilities under section 1833(i) of the
Social Security Act (42 U.S.C. 1395l(i)) before January 1,
2002.
(b) Extending Phase-in to 4 Years.--Section 226 of the BBRA
(113 Stat. 1501A-354) is amended by striking paragraphs (1) and
(2) and inserting the following:
``(1) in the first year of its implementation, only
a proportion (specified by the Secretary and not to
exceed \1/4\) of the payment for such services shall be
made in accordance with such system and the remainder
shall be made in accordance with current regulations;
and
``(2) in each of the following 2 years a proportion
(specified by the Secretary and not to exceed \1/2\,
and \3/4\, respectively) of the payment for such
services shall be made under such system and the
remainder shall be made in accordance with current
regulations.''.
(c) Deadline for Use of 1999 or Later Cost Surveys.--
Section 226 of BBRA (113 Stat. 1501A-354) is amended by adding
at the end the following:
``By not later than January 1, 2003, the Secretary shall
incorporate data from a 1999 medicare cost survey or a
subsequent cost survey for purposes of implementing or revising
such system.''.
SEC. 425. FULL UPDATE FOR DURABLE MEDICAL EQUIPMENT.
(a) In General.--Section 1834(a)(14) (42 U.S.C.
1395m(a)(14)) is amended--
(1) by redesignating subparagraph (D) as
subparagraph (F);
(2) in subparagraph (C)--
(A) by striking ``through 2002'' and
inserting ``through 2000''; and
(B) by striking ``and'' at the end; and
(3) by inserting after subparagraph (C) the
following new subparagraphs:
``(D) for 2001, the percentage increase in
the consumer price index for all urban
consumers (U.S. city average) for the 12-month
period ending with June 2000;
``(E) for 2002, 0 percentage points; and''.
(b) Special Rule for Payment for 2001.--Notwithstanding the
amendments made by subsection (a), for purposes of making
payments for durable medical equipment under section 1834(a) of
the Social Security Act (42 U.S.C. 1395m(a)), other than for
oxygen and oxygen equipment specified in paragraph (9) of such
section, the payment basis recognized for 2001 under such
section--
(1) for items furnished on or after January 1,
2001, and before July 1, 2001, shall be the payment
basis for 2001 as determined under the provisions of
law in effect on the day before the date of the
enactment of this Act (including the application of
section 228(a)(1) of BBRA); and
(2) for items furnished on or after July 1, 2001,
and before January 1, 2002, shall be the payment basis
that is determined under such section 1834(a) if such
section 228(a)(1) did not apply and taking into account
the amendment made by subsection (a), increased by a
transitional percentage allowance equal to 3.28 percent
(to account for the timing of implementation of the CPI
update).
SEC. 426. FULL UPDATE FOR ORTHOTICS AND PROSTHETICS.
(a) In General.--Section 1834(h)(4)(A) (42 U.S.C.
1395m(h)(4)(A)) is amended--
(1) by redesignating clause (vi) as clause (viii);
(2) in clause (v)--
(A) by striking ``through 2002'' and
inserting ``through 2000''; and
(B) by striking ``and'' at the end; and
(3) by inserting after clause (v) the following new
clause:
``(vi) for 2001, the percentage
increase in the consumer price index
for all urban consumers (U.S. city
average) for the 12-month period ending
with June 2000;
``(vii) for 2002, 1 percent; and''.
(b) Special Rule for Payment for 2001.--Notwithstanding the
amendments made by subsection (a), for purposes of making
payments for prosthetic devices and orthotics and prosthetics
(as defined in subparagraphs (B) and (C) of paragraph (4) of
section 1834(h) of the Social Security Act (42 U.S.C. 1395m(h))
under such section, the payment basis recognized for 2001 under
paragraph (2) of such section--
(1) for items furnished on or after January 1,
2001, and before July 1, 2001, shall be the payment
basis for 2001 as determined under the provisions of
law in effect on the day before the date of the
enactment of this Act; and
(2) for items furnished on or after July 1, 2001,
and before January 1, 2002, shall be the payment basis
that is determined under such section taking into
account the amendments made by subsection (a),
increased by a transitional percentage allowance equal
to 2.6 percent (to account for the timing of
implementation of the CPI update).
SEC. 427. ESTABLISHMENT OF SPECIAL PAYMENT PROVISIONS AND REQUIREMENTS
FOR PROSTHETICS AND CERTAIN CUSTOM-FABRICATED
ORTHOTIC ITEMS.
(a) In General.--Section 1834(h)(1) (42 U.S.C. 1395m(h)(1))
is amended by adding at the end the following:
``(F) Special payment rules for certain
prosthetics and custom-fabricated orthotics.--
``(i) In general.--No payment shall
be made under this subsection for an
item of custom-fabricated orthotics
described in clause (ii) or for an item
of prosthetics unless such item is--
``(I) furnished by a
qualified practitioner; and
``(II) fabricated by a
qualified practitioner or a
qualified supplier at a
facility that meets such
criteria as the Secretary
determines appropriate.
``(ii) Description of custom-
fabricated item.--
``(I) In general.--An item
described in this clause is an
item of custom-fabricated
orthotics that requires
education, training, and
experience to custom-fabricate
and that is included in a list
established by the Secretary in
subclause (II). Such an item
does not include shoes and shoe
inserts.
``(II) List of items.--The
Secretary, in consultation with
appropriate experts in
orthotics (including national
organizations representing
manufacturers of orthotics),
shall establish and update as
appropriate a list of items to
which this subparagraph
applies. No item may be
included in such list unless
the item is individually
fabricated for the patient over
a positive model of the
patient.
``(iii) Qualified practitioner
defined.--In this subparagraph, the
term `qualified practitioner' means a
physician or other individual who--
``(I) is a qualified
physical therapist or a
qualified occupational
therapist;
``(II) in the case of a
State that provides for the
licensing of orthotics and
prosthetics, is licensed in
orthotics or prosthetics by the
State in which the item is
supplied; or
``(III) in the case of a
State that does not provide for
the licensing of orthotics and
prosthetics, is specifically
trained and educated to provide
or manage the provision of
prosthetics and custom-designed
or -fabricated orthotics, and
is certified by the American
Board for Certification in
Orthotics and Prosthetics, Inc.
or by the Board for Orthotist/
Prosthetist Certification, or
is credentialed and approved by
a program that the Secretary
determines, in consultation
with appropriate experts in
orthotics and prosthetics, has
training and education
standards that are necessary to
provide such prosthetics and
orthotics.
``(iv) Qualified supplier
defined.--In this subparagraph, the
term `qualified supplier' means any
entity that is accredited by the
American Board for Certification in
Orthotics and Prosthetics, Inc. or by
the Board for Orthotist/Prosthetist
Certification, or accredited and
approved by a program that the
Secretary determines has accreditation
and approval standards that are
essentially equivalent to those of such
Board.''.
(b) Effective Date.--Not later than 1 year after the date
of the enactment of this Act, the Secretary of Health and Human
Services shall promulgate revised regulations to carry out the
amendment made by subsection (a) using a negotiated rulemaking
process under subchapter III of chapter 5 of title 5, United
States Code.
(c) GAO Study and Report.--
(1) Study.--The Comptroller General of the United
States shall conduct a study on HCFA Ruling 96-1,
issued on September 1, 1996, with respect to
distinguishing orthotics from durable medical equipment
under the medicare program under title XVIII of the
Social Security Act. The study shall assess the
following matters:
(A) The compliance of the Secretary of
Health and Human Services with the
Administrative Procedures Act (under chapter 5
of title 5, United States Code) in making such
ruling.
(B) The potential impact of such ruling on
the health care furnished to medicare
beneficiaries under the medicare program,
especially those beneficiaries with
degenerative musculoskeletal conditions.
(C) The potential for fraud and abuse under
the medicare program if payment were provided
for orthotics used as a component of durable
medical equipment only when made under the
special payment provision for certain
prosthetics and custom-fabricated orthotics
under section 1834(h)(1)(F) of the Social
Security Act, as added by subsection (a) and
furnished by qualified practitioners under that
section.
(D) The impact on payments under titles
XVIII and XIX of the Social Security Act if
such ruling were overturned.
(2) Report.--Not later than 6 months after the date
of the enactment of this Act, the Comptroller General
shall submit to Congress a report on the study
conducted under paragraph (1).
SEC. 428. REPLACEMENT OF PROSTHETIC DEVICES AND PARTS.
(a) In General.--Section 1834(h)(1) (42 U.S.C.
1395m(h)(1)), as amended by section 427(a), is further amended
by adding at the end the following new subparagraph:
``(G) Replacement of prosthetic devices and
parts.--
``(i) In general.--Payment shall be
made for the replacement of prosthetic
devices which are artificial limbs, or
for the replacement of any part of such
devices, without regard to continuous
use or useful lifetime restrictions if
an ordering physician determines that
the provision of a replacement device,
or a replacement part of such a device,
is necessary because of any of the
following:
``(I) A change in the
physiological condition of the
patient.
``(II) An irreparable
change in the condition of the
device, or in a part of the
device.
``(III) The condition of
the device, or the part of the
device, requires repairs and
the cost of such repairs would
be more than 60 percent of the
cost of a replacement device,
or, as the case may be, of the
part being replaced.
``(ii) Confirmation may be required
if device or part being replaced is
less than 3 years old.--If a physician
determines that a replacement device,
or a replacement part, is necessary
pursuant to clause (i)--
``(I) such determination
shall be controlling; and
``(II) such replacement
device or part shall be deemed
to be reasonable and necessary
for purposes of section
1862(a)(1)(A);
except that if the device, or part,
being replaced is less than 3 years old
(calculated from the date on which the
beneficiary began to use the device or
part), the Secretary may also require
confirmation of necessity of the
replacement device or replacement part,
as the case may be.''.
(b) Preemption of Rule.--The provisions of section
1834(h)(1)(G) as added by subsection (a) shall supersede any
rule that as of the date of the enactment of this Act may have
applied a 5-year replacement rule with regard to prosthetic
devices.
(c) Effective Date.--The amendment made by subsection (a)
shall apply to items replaced on or after April 1, 2001.
SEC. 429. REVISED PART B PAYMENT FOR DRUGS AND BIOLOGICALS AND RELATED
SERVICES.
(a) Recommendations for Revised Payment Methodology for
Drugs and Biologicals.--
(1) Study.--
(A) In general.--The Comptroller General of
the United States shall conduct a study on the
reimbursement for drugs and biologicals under
the current medicare payment methodology
(provided under section 1842(o) of the Social
Security Act (42 U.S.C. 1395u(o))) and for
related services under part B of title XVIII of
such Act. In the study, the Comptroller General
shall--
(i) identify the average prices at
which such drugs and biologicals are
acquired by physicians and other
suppliers;
(ii) quantify the difference
between such average prices and the
reimbursement amount under such
section; and
(iii) determine the extent to which
(if any) payment under such part is
adequate to compensate physicians,
providers of services, or other
suppliers of such drugs and biologicals
for costs incurred in the
administration, handling, or storage of
such drugs or biologicals.
(B) Consultation.--In conducting the study
under subparagraph (A), the Comptroller General
shall consult with physicians, providers of
services, and suppliers of drugs and
biologicals under the medicare program under
title XVIII of such Act, as well as other
organizations involved in the distribution of
such drugs and biologicals to such physicians,
providers of services, and suppliers.
(2) Report.--Not later than 9 months after the date
of the enactment of this Act, the Comptroller General
shall submit to Congress and to the Secretary of Health
and Human Services a report on the study conducted
under this subsection, and shall include in such report
recommendations for revised payment methodologies
described in paragraph (3).
(3) Recommendations for revised payment
methodologies.--
(A) In general.--The Comptroller General
shall provide specific recommendations for
revised payment methodologies for reimbursement
for drugs and biologicals and for related
services under the medicare program. The
Comptroller General may include in the
recommendations--
(i) proposals to make adjustments
under subsection (c) of section 1848 of
the Social Security Act (42 U.S.C.
1395w-4) for the practice expense
component of the physician fee schedule
under such section for the costs
incurred in the administration,
handling, or storage of certain
categories of such drugs and
biologicals, if appropriate; and
(ii) proposals for new payments to
providers of services or suppliers for
such costs, if appropriate.
(B) Ensuring patient access to care.--In
making recommendations under this paragraph,
the Comptroller General shall ensure that any
proposed revised payment methodology is
designed to ensure that medicare beneficiaries
continue to have appropriate access to health
care services under the medicare program.
(C) Matters considered.--In making
recommendations under this paragraph, the
Comptroller General shall consider--
(i) the method and amount of
reimbursement for similar drugs and
biologicals made by large group health
plans;
(ii) as a result of any revised
payment methodology, the potential for
patients to receive inpatient or
outpatient hospital services in lieu of
services in a physician's office; and
(iii) the effect of any revised
payment methodology on the delivery of
drug therapies by hospital outpatient
departments.
(D) Coordination with bbra study.--In
making recommendations under this paragraph,
the Comptroller General shall conclude and take
into account the results of the study provided
for under section 213(a) of BBRA (113 Stat.
1501A-350).
(b) Implementation of New Payment Methodology.--
(1) In general.--Notwithstanding any other
provision of law, based on the recommendations
contained in the report under subsection (a), the
Secretary of Health and Human Services, subject to
paragraph (2), shall revise the payment methodology
under section 1842(o) of the Social Security Act (42
U.S.C. 1395u(o)) for drugs and biologicals furnished
under part B of the medicare program. To the extent the
Secretary determines appropriate, the Secretary may
provide for the adjustments to payments amounts
referred to in subsection (a)(3)(A)(i) or additional
payments referred to in subsection (a)(2)(A)(ii).
(2) Limitation.--In revising the payment
methodology under paragraph (1), in no case may the
estimated aggregate payments for drugs and biologicals
under the revised system (including additional payments
referred to in subsection (a)(3)(A)(ii)) exceed the
aggregate amount of payment for such drugs and
biologicals, as projected by the Secretary, that would
have been made under the payment methodology in effect
under such section 1842(o).
(c) Moratorium on Decreases in Payment Rates.--
Notwithstanding any other provision of law, effective for drugs
and biologicals furnished on or after January 1, 2001, the
Secretary may not directly or indirectly decrease the rates of
reimbursement (in effect as of such date) for drugs and
biologicals under the current medicare payment methodology
(provided under section 1842(o) of the Social Security Act (42
U.S.C. 1395u(o))) until such time as the Secretary has reviewed
the report submitted under subsection (a)(2).
SEC. 430. CONTRAST ENHANCED DIAGNOSTIC PROCEDURES UNDER HOSPITAL
PROSPECTIVE PAYMENT SYSTEM.
(a) Separate Classification.--Section 1833(t)(2) (42 U.S.C.
1395l(t)(2)) is amended--
(1) by striking ``and'' at the end of subparagraph
(E);
(2) by striking the period at the end of
subparagraph (F) and inserting ``; and''; and
(3) by inserting after subparagraph (F) the
following new subparagraph:
``(G) the Secretary shall create additional
groups of covered OPD services that classify
separately those procedures that utilize
contrast agents from those that do not.''.
(b) Conforming Amendment.--Section 1861(t)(1) (42 U.S.C.
1395x(t)(1)) is amended by inserting ``(including contrast
agents)'' after ``only such drugs''.
(c) Effective Date.--The amendments made by this section
apply to items and services furnished on or after July 1, 2001.
SEC. 431. QUALIFICATIONS FOR COMMUNITY MENTAL HEALTH CENTERS.
(a) Medicare Program.--Section 1861(ff)(3)(B) (42 U.S.C.
1395x(ff)(3)(B)) is amended by striking ``entity'' and all that
follows and inserting the following: ``entity that--
``(i)(I) provides the mental health services
described in section 1913(c)(1) of the Public Health
Service Act; or
``(II) in the case of an entity operating in a
State that by law precludes the entity from providing
itself the service described in subparagraph (E) of
such section, provides for such service by contract
with an approved organization or entity (as determined
by the Secretary);
``(ii) meets applicable licensing or certification
requirements for community mental health centers in the
State in which it is located; and
``(iii) meets such additional conditions as the
Secretary shall specify to ensure (I) the health and
safety of individuals being furnished such services,
(II) the effective and efficient furnishing of such
services, and (III) the compliance of such entity with
the criteria described in section 1931(c)(1) of the
Public Health Service Act.''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply with respect to community mental health centers
with respect to services furnished on or after the first day of
the third month beginning after the date of the enactment of
this Act.
SEC. 432. PAYMENT OF PHYSICIAN AND NONPHYSICIAN SERVICES IN CERTAIN
INDIAN PROVIDERS.
(a) In General.--Section 1880 (42 U.S.C. 1395qq) is
amended--
(1) by redesignating subsection (e), as added by
section 3(b)(1) of the Alaska Native and American
Indian Direct Reimbursement Act of 2000 (Public Law
106-417), as subsection (f); and
(2) by inserting after subsection (d) the following
new subsection:
``(e)(1)(A) Notwithstanding section 1835(d), subject to
subparagraph (B), the Secretary shall make payment under part B
to a hospital or an ambulatory care clinic (whether provider-
based or freestanding) that is operated by the Indian Health
Service or by an Indian tribe or tribal organization (as
defined for purposes of subsection (a)) for services described
in paragraph (2) furnished in or at the direction of the
hospital or clinic under the same situations, terms, and
conditions as would apply if the services were furnished in or
at the direction of such a hospital or clinic that was not
operated by such Service, tribe, or organization.
``(B) Payment shall not be made for services under
subparagraph (A) to the extent that payment is otherwise made
for such services under this title.
``(2) The services described in this paragraph are the
following:
``(A) Services for which payment is made under
section 1848.
``(B) Services furnished by a practitioner
described in section 1842(b)(18)(C) for which payment
under part B is made under a fee schedule.
``(C) Services furnished by a physical therapist or
occupational therapist as described in section 1861(p)
for which payment under part B is made under a fee
schedule.
``(3) Subsection (c) shall not apply to payments made under
this subsection.''.
(b) Conforming Amendments.--
(1) Coverage amendment.--Section 1862(a)(3) (42
U.S.C. 1395y(a)(3)) is amended--
(A) by striking the second comma after
``1861(aa)(1)''; and
(B) by inserting ``in the case of services
for which payment may be made under section
1880(e),'' after ``as defined in section
1861(aa)(3),''.
(2) Direct payment amendment.--The first sentence
of section 1842(b)(6) (42 U.S.C. 1395u(b)(6)) is
amended--
(A) by striking ``and (F)'' and inserting
``(F)''; and
(B) by inserting before the period the
following: ``, and (G) in the case of services
in a hospital or clinic to which section
1880(e) applies, payment shall be made to such
hospital or clinic''.
(c) Effective Date.--The amendments made by this section
shall apply to services furnished on or after July 1, 2001.
SEC. 433. GAO STUDY ON COVERAGE OF SURGICAL FIRST ASSISTING SERVICES OF
CERTIFIED REGISTERED NURSE FIRST ASSISTANTS.
(a) Study.--The Comptroller General of the United States
shall conduct a study on the effect on the medicare program
under title XVIII of the Social Security Act and on medicare
beneficiaries of coverage under the program of surgical first
assisting services of certified registered nurse first
assistants. The Comptroller General shall consider the
following when conducting the study:
(1) Any impact on the quality of care furnished to
medicare beneficiaries by reason of such coverage.
(2) Appropriate education and training requirements
for certified registered nurse first assistants who
furnish such first assisting services.
(3) Appropriate rates of payment under the program
to such certified registered nurse first assistants for
furnishing such services, taking into account the costs
of compensation, overhead, and supervision attributable
to certified registered nurse first assistants.
(b) Report.--Not later than 1 year after the date of the
enactment of this Act, the Comptroller General shall submit to
Congress a report on the study conducted under subsection (a).
SEC. 434. MEDPAC STUDY AND REPORT ON MEDICARE REIMBURSEMENT FOR
SERVICES PROVIDED BY CERTAIN PROVIDERS.
(a) Study.--The Medicare Payment Advisory Commission shall
conduct a study on the appropriateness of the current payment
rates under the medicare program under title XVIII of the
Social Security Act for services provided by a--
(1) certified nurse-midwife (as defined in
subsection (gg)(2) of section 1861 of such Act (42
U.S.C. 1395x));
(2) physician assistant (as defined in subsection
(aa)(5)(A) of such section);
(3) nurse practitioner (as defined in such
subsection); and
(4) clinical nurse specialist (as defined in
subsection (aa)(5)(B) of such section).
The study shall separately examine the appropriateness of such
payment rates for orthopedic physician assistants, taking into
consideration the requirements for accreditation, training, and
education.
(b) Report.--Not later than 18 months after the date of the
enactment of this Act, the Commission shall submit to Congress
a report on the study conducted under subsection (a), together
with any recommendations for legislation that the Commission
determines to be appropriate as a result of such study.
SEC. 435. MEDPAC STUDY AND REPORT ON MEDICARE COVERAGE OF SERVICES
PROVIDED BY CERTAIN NONPHYSICIAN PROVIDERS.
(a) Study.--
(1) In general.--The Medicare Payment Advisory
Commission shall conduct a study to determine the
appropriateness of providing coverage under the
medicare program under title XVIII of the Social
Security Act for services provided by a--
(A) surgical technologist;
(B) marriage counselor;
(C) marriage and family therapist;
(D) pastoral care counselor; and
(E) licensed professional counselor of
mental health.
(2) Costs to program.--The study shall consider the
short-term and long-term benefits, and costs to the
medicare program, of providing the coverage described
in paragraph (1).
(b) Report.--Not later than 18 months after the date of the
enactment of this Act, the Commission shall submit to Congress
a report on the study conducted under subsection (a), together
with any recommendations for legislation that the Commission
determines to be appropriate as a result of such study.
SEC. 436. GAO STUDY AND REPORT ON THE COSTS OF EMERGENCY AND MEDICAL
TRANSPORTATION SERVICES.
(a) Study.--The Comptroller General of the United States
shall conduct a study on the costs of providing emergency and
medical transportation services across the range of acuity
levels of conditions for which such transportation services are
provided.
(b) Report.--Not later than 18 months after the date of the
enactment of this Act, the Comptroller General shall submit to
Congress a report on the study conducted under subsection (a),
together with recommendations for any changes in methodology or
payment level necessary to fairly compensate suppliers of
emergency and medical transportation services and to ensure the
access of beneficiaries under the medicare program under title
XVIII of the Social Security Act.
SEC. 437. GAO STUDIES AND REPORTS ON MEDICARE PAYMENTS.
(a) GAO Study on HCFA Post-Payment Audit Process.--
(1) Study.--The Comptroller General of the United
States shall conduct a study on the post-payment audit
process under the medicare program under title XVIII of
the Social Security Act as such process applies to
physicians, including the proper level of resources
that the Health Care Financing Administration should
devote to educating physicians regarding--
(A) coding and billing;
(B) documentation requirements; and
(C) the calculation of overpayments.
(2) Report.--Not later than 18 months after the
date of the enactment of this Act, the Comptroller
General shall submit to Congress a report on the study
conducted under paragraph (1) together with specific
recommendations for changes or improvements in the
post-payment audit process described in such paragraph.
(b) GAO Study on Administration and Oversight.--
(1) Study.--The Comptroller General of the United
States shall conduct a study on the aggregate effects
of regulatory, audit, oversight, and paperwork burdens
on physicians and other health care providers
participating in the medicare program under title XVIII
of the Social Security Act.
(2) Report.--Not later than 18 months after the
date of the enactment of this Act, the Comptroller
General shall submit to Congress a report on the study
conducted under paragraph (1) together with
recommendations regarding any area in which--
(A) a reduction in paperwork, an ease of
administration, or an appropriate change in
oversight and review may be accomplished; or
(B) additional payments or education are
needed to assist physicians and other health
care providers in understanding and complying
with any legal or regulatory requirements.
SEC. 438. MEDPAC STUDY ON ACCESS TO OUTPATIENT PAIN MANAGEMENT
SERVICES.
(a) Study.--The Medicare Payment Advisory Commission shall
conduct a study on the barriers to coverage and payment for
outpatient interventional pain medicine procedures under the
medicare program under title XVIII of the Social Security Act.
Such study shall examine--
(1) the specific barriers imposed under the
medicare program on the provision of pain management
procedures in hospital outpatient departments,
ambulatory surgery centers, and physicians' offices;
and
(2) the consistency of medicare payment policies
for pain management procedures in those different
settings.
(b) Report.--Not later than 1 year after the date of the
enactment of this Act, the Commission shall submit to Congress
a report on the study.
TITLE V--PROVISIONS RELATING TO PARTS A AND B
Subtitle A--Home Health Services
SEC. 501. 1-YEAR ADDITIONAL DELAY IN APPLICATION OF 15 PERCENT
REDUCTION ON PAYMENT LIMITS FOR HOME HEALTH
SERVICES.
(a) In General.--Section 1895(b)(3)(A)(i) (42 U.S.C.
1395fff(b)(3)(A)(i)) is amended--
(1) by redesignating subclause (II) as subclause
(III);
(2) in subclause (III), as redesignated, by
striking ``described in subclause (I)'' and inserting
``described in subclause (II)''; and
(3) by inserting after subclause (I) the following
new subclause:
``(II) For the 12-month
period beginning after the
period described in subclause
(I), such amount (or amounts)
shall be equal to the amount
(or amounts) determined under
subclause (I), updated under
subparagraph (B).''.
(b) Change in Report.--Section 302(c) of BBRA (113 Stat.
1501A-360) is amended--
(1) by striking ``Not later than'' and all that
follows through ``(42 U.S.C. 1395fff)'' and inserting
``Not later than April 1, 2002''; and
(2) by striking ``Secretary'' and inserting
``Comptroller General of the United States''.
(c) Case Mix Adjustment Corrections.--
(1) In general.--Section 1895(b)(3)(B) (42 U.S.C.
1395fff(b)(3)(B)) is amended by adding at the end the
following new clause:
``(iv) Adjustment for case mix
changes.--Insofar as the Secretary
determines that the adjustments under
paragraph (4)(A)(i) for a previous
fiscal year (or estimates that such
adjustments for a future fiscal year)
did (or are likely to) result in a
change in aggregate payments under this
subsection during the fiscal year that
are a result of changes in the coding
or classification of different units of
services that do not reflect real
changes in case mix, the Secretary may
adjust the standard prospective payment
amount (or amounts) under paragraph (3)
for subsequent fiscal years so as to
eliminate the effect of such coding or
classification changes.''.
(2) Effective date.--The amendment made by
paragraph (1) shall apply to episodes concluding on or
after October 1, 2001.
SEC. 502. RESTORATION OF FULL HOME HEALTH MARKET BASKET UPDATE FOR HOME
HEALTH SERVICES FOR FISCAL YEAR 2001.
(a) In General.--Section 1861(v)(1)(L)(x) (42 U.S.C.
1395x(v)(1)(L)(x)) is amended--
(1) by striking ``2001,''; and
(2) by adding at the end the following: ``With
respect to cost reporting periods beginning during
fiscal year 2001, the update to any limit under this
subparagraph shall be the home health market basket
index.''.
(b) Special Rule for Payment for Fiscal Year 2001 Based on
Adjusted Prospective Payment Amounts.--
(1) In general.--Notwithstanding the amendments
made by subsection (a), for purposes of making payments
under section 1895(b) of the Social Security Act (42
U.S.C. 1395fff(b)) for home health services furnished
during fiscal year 2001, the Secretary of Health and
Human Services shall--
(A) with respect to episodes and visits
ending on or after October 1, 2000, and before
April 1, 2001, use the final standardized and
budget neutral prospective payment amounts for
60-day episodes and standardized average per
visit amounts for fiscal year 2001 as published
by the Secretary in the Federal Register on
July 3, 2000 (65 Fed. Reg. 41128-41214); and
(B) with respect to episodes and visits
ending on or after April 1, 2001, and before
October 1, 2001, use such amounts increased by
2.2 percent.
(2) No effect on other payments or
determinations.--The Secretary shall not take the
provisions of paragraph (1) into account for purposes
of payments, determinations, or budget neutrality
adjustments under section 1895 of the Social Security
Act.
SEC. 503. TEMPORARY TWO-MONTH PERIODIC INTERIM PAYMENT.
(a) In General.--Notwithstanding the amendments made by
section 4603(b) of BBA (42 U.S.C. 1395fff note), in the case of
a home health agency that was receiving periodic interim
payments under section 1815(e)(2) of the Social Security Act
(42 U.S.C. 1395g(e)(2)) as of September 30, 2000, and that is
not described in subsection (b), the Secretary of Health and
Human Services shall, as soon as practicable, make a single
periodic interim payment to such agency in an amount equal to
four times the last full fortnightly periodic interim payment
made to such agency under the payment system in effect prior to
the implementation of the prospective payment system under
section 1895(b) of such Act (42 U.S.C. 1395fff(b)). Such amount
of such periodic interim payment shall be included in the
tentative settlement of the last cost report for the home
health agency under the payment system in effect prior to the
implementation of such prospective payment system, regardless
of the ending date of such cost report.
(b) Exceptions.--The Secretary shall not make an additional
periodic interim payment under subsection (a) in the case of a
home health agency (determined as of the day that such payment
would otherwise be made) that--
(1) notifies the Secretary that such agency does
not want to receive such payment;
(2) is not receiving payments pursuant to section
405.371 of title 42, Code of Federal Regulations;
(3) is excluded from the medicare program under
title XI of the Social Security Act;
(4) no longer has a provider agreement under
section 1866 of such Act (42 U.S.C. 1395cc);
(5) is no longer in business; or
(6) is subject to a court order providing for the
withholding of medicare payments under title XVIII of
such Act.
SEC. 504. USE OF TELEHEALTH IN DELIVERY OF HOME HEALTH SERVICES.
Section 1895 (42 U.S.C. 1395fff) is amended by adding at
the end the following new subsection:
``(e) Construction Related to Home Health Services.--
``(1) Telecommunications.--Nothing in this section
shall be construed as preventing a home health agency
furnishing a home health unit of service for which
payment is made under the prospective payment system
established by this section for such units of service
from furnishing services via a telecommunication system
if such services--
``(A) do not substitute for in-person home
health services ordered as part of a plan of
care certified by a physician pursuant to
section 1814(a)(2)(C) or 1835(a)(2)(A); and
``(B) are not considered a home health
visit for purposes of eligibility or payment
under this title.
``(2) Physician certification.--Nothing in this
section shall be construed as waiving the requirement
for a physician certification under section
1814(a)(2)(C) or 1835(a)(2)(A) of such Act (42 U.S.C.
1395f(a)(2)(C), 1395n(a)(2)(A)) for the payment for
home health services, whether or not furnished via a
telecommunications system.''.
SEC. 505. STUDY ON COSTS TO HOME HEALTH AGENCIES OF PURCHASING
NONROUTINE MEDICAL SUPPLIES.
(a) Study.--The Comptroller General of the United States
shall conduct a study on variations in prices paid by home
health agencies furnishing home health services under the
medicare program under title XVIII of the Social Security Act
in purchasing nonroutine medical supplies, including ostomy
supplies, and volumes of such supplies used, shall determine
the effect (if any) of variations on prices and volumes in the
provision of such services.
(b) Report.--Not later than August 15, 2001, the
Comptroller General shall submit to Congress a report on the
study conducted under subsection (a), and shall include in the
report recommendations respecting whether payment for
nonroutine medical supplies furnished in connection with home
health services should be made separately from the prospective
payment system for such services.
SEC. 506. TREATMENT OF BRANCH OFFICES; GAO STUDY ON SUPERVISION OF HOME
HEALTH CARE PROVIDED IN ISOLATED RURAL AREAS.
(a) Treatment of Branch Offices.--
(1) In general.--Notwithstanding any other
provision of law, in determining for purposes of title
XVIII of the Social Security Act whether an office of a
home health agency constitutes a branch office or a
separate home health agency, neither the time nor
distance between a parent office of the home health
agency and a branch office shall be the sole
determinant of a home health agency's branch office
status.
(2) Consideration of forms of technology in
definition of supervision.--The Secretary of Health and
Human Services may include forms of technology in
determining what constitutes ``supervision'' for
purposes of determining a home heath agency's branch
office status under paragraph (1).
(b) GAO Study.--
(1) Study.--The Comptroller General of the United
States shall conduct a study of the provision of
adequate supervision to maintain quality of home health
services delivered under the medicare program under
title XVIII of the Social Security Act in isolated
rural areas. The study shall evaluate the methods that
home health agency branches and subunits use to
maintain adequate supervision in the delivery of
services to clients residing in those areas, how these
methods of supervision compare to requirements that
subunits independently meet medicare conditions of
participation, and the resources utilized by subunits
to meet such conditions.
(2) Report.--Not later than January 1, 2002, the
Comptroller General shall submit to Congress a report
on the study conducted under paragraph (1). The report
shall include recommendations on whether exceptions are
needed for subunits and branches of home health
agencies under the medicare program to maintain access
to the home health benefit or whether alternative
policies should be developed to assure adequate
supervision and access and recommendations on whether a
national standard for supervision is appropriate.
SEC. 507. CLARIFICATION OF THE HOMEBOUND DEFINITION UNDER THE MEDICARE
HOME HEALTH BENEFIT.
(a) Clarification.--
(1) In general.--Sections 1814(a) and 1835(a) (42
U.S.C. 1395f(a) and 1395n(a)) are each amended--
(A) in the last sentence, by striking ``,
and that absences of the individual from home
are infrequent or of relatively short duration,
or are attributable to the need to receive
medical treatment''; and
(B) by adding at the end the following new
sentences: ``Any absence of an individual from
the home attributable to the need to receive
health care treatment, including regular
absences for the purpose of participating in
therapeutic, psychosocial, or medical treatment
in an adult day-care program that is licensed
or certified by a State, or accredited, to
furnish adult day-care services in the State
shall not disqualify an individual from being
considered to be `confined to his home'. Any
other absence of an individual from the home
shall not so disqualify an individual if the
absence is of infrequent or of relatively short
duration. For purposes of the preceding
sentence, any absence for the purpose of
attending a religious service shall be deemed
to be an absence of infrequent or short
duration.''.
(2) Effective date.--The amendments made by
paragraph (1) shall apply to home health services
furnished on or after the date of the enactment of this
Act.
(b) Study.--
(1) In general.--The Comptroller General of the
United States shall conduct an evaluation of the effect
of the amendment on the cost of and access to home
health services under the medicare program under title
XVIII of the Social Security Act.
(2) Report.--Not later than 1 year after the date
of the enactment of this Act, the Comptroller General
shall submit to Congress a report on the study
conducted under paragraph (1).
SEC. 508. TEMPORARY INCREASE FOR HOME HEALTH SERVICES FURNISHED IN A
RURAL AREA.
(a) 24-Month Increase Beginning April 1, 2001.--In the case
of home health services furnished in a rural area (as defined
in section 1886(d)(2)(D) of the Social Security Act (42 U.S.C.
1395ww(d)(2)(D))) on or after April 1, 2001, and before April
1, 2003, the Secretary of Health and Human Services shall
increase the payment amount otherwise made under section 1895
of such Act (42 U.S.C. 1395fff) for such services by 10
percent.
(b) Waiving Budget Neutrality.--The Secretary shall not
reduce the standard prospective payment amount (or amounts)
under section 1895 of the Social Security Act (42 U.S.C.
1395fff) applicable to home health services furnished during a
period to offset the increase in payments resulting from the
application of subsection (a).
Subtitle B--Direct Graduate Medical Education
SEC. 511. INCREASE IN FLOOR FOR DIRECT GRADUATE MEDICAL EDUCATION
PAYMENTS.
Section 1886(h)(2)(D)(iii) (42 U.S.C. 1395ww(h)(2)(D)(iii))
is amended--
(1) in the heading, by striking ``in fiscal year
2001 at 70 percent of'' and inserting ``for''; and
(2) by inserting after ``70 percent'' the
following: ``, and for the cost reporting period
beginning during fiscal year 2002 shall not be less
than 85 percent,''.
SEC. 512. CHANGE IN DISTRIBUTION FORMULA FOR MEDICARE+CHOICE-RELATED
NURSING AND ALLIED HEALTH EDUCATION COSTS.
(a) In General.--Section 1886(l)(2)(C) (42 U.S.C.
1395ww(l)(2)(C)) is amended by striking all that follows
``multiplied by'' and inserting the following: ``the ratio of--
``(i) the product of (I) the
Secretary's estimate of the ratio of
the amount of payments made under
section 1861(v) to the hospital for
nursing and allied health education
activities for the hospital's cost
reporting period ending in the second
preceding fiscal year, to the
hospital's total inpatient days for
such period, and (II) the total number
of inpatient days (as established by
the Secretary) for such period which
are attributable to services furnished
to individuals who are enrolled under a
risk sharing contract with an eligible
organization under section 1876 and who
are entitled to benefits under part A
or who are enrolled with a
Medicare+Choice organization under part
C; to
``(ii) the sum of the products
determined under clause (i) for such
cost reporting periods.''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to portions of cost reporting periods occurring on
or after January 1, 2001.
Subtitle C--Changes in Medicare Coverage and Appeals Process
SEC. 521. REVISIONS TO MEDICARE APPEALS PROCESS.
(a) Conduct of Reconsiderations of Determinations by
Independent Contractors.--Section 1869 (42 U.S.C. 1395ff) is
amended to read as follows:
``determinations; appeals
``Sec. 1869. (a) Initial Determinations.--
``(1) Promulgations of regulations.--The Secretary
shall promulgate regulations and make initial
determinations with respect to benefits under part A or
part B in accordance with those regulations for the
following:
``(A) The initial determination of whether
an individual is entitled to benefits under
such parts.
``(B) The initial determination of the
amount of benefits available to the individual
under such parts.
``(C) Any other initial determination with
respect to a claim for benefits under such
parts, including an initial determination by
the Secretary that payment may not be made, or
may no longer be made, for an item or service
under such parts, an initial determination made
by a utilization and quality control peer
review organization under section 1154(a)(2),
and an initial determination made by an entity
pursuant to a contract (other than a contract
under section 1852) with the Secretary to
administer provisions of this title or title
XI.
``(2) Deadlines for making initial
determinations.--
``(A) In general.--Subject to subparagraph
(B), in promulgating regulations under
paragraph (1), initial determinations shall be
concluded by not later than the 45-day period
beginning on the date the fiscal intermediary
or the carrier, as the case may be, receives a
claim for benefits from an individual as
described in paragraph (1). Notice of such
determination shall be mailed to the individual
filing the claim before the conclusion of such
45-day period.
``(B) Clean claims.--Subparagraph (A) shall
not apply with respect to any claim that is
subject to the requirements of section
1816(c)(2) or 1842(c)(2).
``(3) Redeterminations.--
``(A) In general.--In promulgating
regulations under paragraph (1) with respect to
initial determinations, such regulations shall
provide for a fiscal intermediary or a carrier
to make a redetermination with respect to a
claim for benefits that is denied in whole or
in part.
``(B) Limitations.--
``(i) Appeal rights.--No initial
determination may be reconsidered or
appealed under subsection (b) unless
the fiscal intermediary or carrier has
made a redetermination of that initial
determination under this paragraph.
``(ii) Decisionmaker.--No
redetermination may be made by any
individual involved in the initial
determination.
``(C) Deadlines.--
``(i) Filing for redetermination.--
A redetermination under subparagraph
(A) shall be available only if notice
is filed with the Secretary to request
the redetermination by not later than
the end of the 120-day period beginning
on the date the individual receives
notice of the initial determination
under paragraph (2).
``(ii) Concluding
redeterminations.--Redeterminations
shall be concluded by not later than
the 30-day period beginning on the date
the fiscal intermediary or the carrier,
as the case may be, receives a request
for a redetermination. Notice of such
determination shall be mailed to the
individual filing the claim before the
conclusion of such 30-day period.
``(D) Construction.--For purposes of the
succeeding provisions of this section a
redetermination under this paragraph shall be
considered to be part of the initial
determination.
``(b) Appeal Rights.--
``(1) In general.--
``(A) Reconsideration of initial
determination.--Subject to subparagraph (D),
any individual dissatisfied with any initial
determination under subsection (a)(1) shall be
entitled to reconsideration of the
determination, and, subject to subparagraphs
(D) and (E), a hearing thereon by the Secretary
to the same extent as is provided in section
205(b) and to judicial review of the
Secretary's final decision after such hearing
as is provided in section 205(g). For purposes
of the preceding sentence, any reference to the
`Commissioner of Social Security' or the
`Social Security Administration' in subsection
(g) or (l) of section 205 shall be considered a
reference to the `Secretary' or the `Department
of Health and Human Services', respectively.
``(B) Representation by provider or
supplier.--
``(i) In general.--Sections 206(a),
1102, and 1871 shall not be construed
as authorizing the Secretary to
prohibit an individual from being
represented under this section by a
person that furnishes or supplies the
individual, directly or indirectly,
with services or items, solely on the
basis that the person furnishes or
supplies the individual with such a
service or item.
``(ii) Mandatory waiver of right to
payment from beneficiary.--Any person
that furnishes services or items to an
individual may not represent an
individual under this section with
respect to the issue described in
section 1879(a)(2) unless the person
has waived any rights for payment from
the beneficiary with respect to the
services or items involved in the
appeal.
``(iii) Prohibition on payment for
representation.--If a person furnishes
services or items to an individual and
represents the individual under this
section, the person may not impose any
financial liability on such individual
in connection with such representation.
``(iv) Requirements for
representatives of a beneficiary.--The
provisions of section 205(j) and of
section 206 (other than subsection
(a)(4) of such section) regarding
representation of claimants shall apply
to representation of an individual with
respect to appeals under this section
in the same manner as they apply to
representation of an individual under
those sections.
``(C) Succession of rights in cases of
assignment.--The right of an individual to an
appeal under this section with respect to an
item or service may be assigned to the provider
of services or supplier of the item or service
upon the written consent of such individual
using a standard form established by the
Secretary for such an assignment.
``(D) Time limits for filing appeals.--
``(i) Reconsiderations.--
Reconsideration under subparagraph (A)
shall be available only if the
individual described in subparagraph
(A) files notice with the Secretary to
request reconsideration by not later
than the end of the 180-day period
beginning on the date the individual
receives notice of the redetermination
under subsection (a)(3), or within such
additional time as the Secretary may
allow.
``(ii) Hearings conducted by the
secretary.--The Secretary shall
establish in regulations time limits
for the filing of a request for a
hearing by the Secretary in accordance
with provisions in sections 205 and
206.
``(E) Amounts in controversy.--
``(i) In general.--A hearing (by
the Secretary) shall not be available
to an individual under this section if
the amount in controversy is less than
$100, and judicial review shall not be
available to the individual if the
amount in controversy is less than
$1,000.
``(ii) Aggregation of claims.--In
determining the amount in controversy,
the Secretary, under regulations, shall
allow two or more appeals to be
aggregated if the appeals involve--
``(I) the delivery of
similar or related services to
the same individual by one or
more providers of services or
suppliers, or
``(II) common issues of law
and fact arising from services
furnished to two or more
individuals by one or more
providers of services or
suppliers.
``(F) Expedited proceedings.--
``(i) Expedited determination.--In
the case of an individual who has
received notice from a provider of
services that such provider plans--
``(I) to terminate services
provided to an individual and a
physician certifies that
failure to continue the
provision of such services is
likely to place the
individual's health at
significant risk, or
``(II) to discharge the
individual from the provider of
services,
the individual may request, in writing
or orally, an expedited determination
or an expedited reconsideration of an
initial determination made under
subsection (a)(1), as the case may be,
and the Secretary shall provide such
expedited determination or expedited
reconsideration.
``(ii) Expedited hearing.--In a
hearing by the Secretary under this
section, in which the moving party
alleges that no material issues of fact
are in dispute, the Secretary shall
make an expedited determination as to
whether any such facts are in dispute
and, if not, shall render a decision
expeditiously.
``(G) Reopening and revision of
determinations.--The Secretary may reopen or
revise any initial determination or
reconsidered determination described in this
subsection under guidelines established by the
Secretary in regulations.
``(c) Conduct of Reconsiderations by Independent
Contractors.--
``(1) In general.--The Secretary shall enter into
contracts with qualified independent contractors to
conduct reconsiderations of initial determinations made
under subparagraphs (B) and (C) of subsection (a)(1).
Contracts shall be for an initial term of three years
and shall be renewable on a triennial basis thereafter.
``(2) Qualified independent contractor.--For
purposes of this subsection, the term `qualified
independent contractor' means an entity or organization
that is independent of any organization under contract
with the Secretary that makes initial determinations
under subsection (a)(1), and that meets the
requirements established by the Secretary consistent
with paragraph (3).
``(3) Requirements.--Any qualified independent
contractor entering into a contract with the Secretary
under this subsection shall meet all of the following
requirements:
``(A) In general.--The qualified
independent contractor shall perform such
duties and functions and assume such
responsibilities as may be required by the
Secretary to carry out the provisions of this
subsection, and shall have sufficient training
and expertise in medical science and legal
matters to make reconsiderations under this
subsection.
``(B) Reconsiderations.--
``(i) In general.--The qualified
independent contractor shall review
initial determinations. Where an
initial determination is made with
respect to whether an item or service
is reasonable and necessary for the
diagnosis or treatment of illness or
injury (under section 1862(a)(1)(A)),
such review shall include consideration
of the facts and circumstances of the
initial determination by a panel of
physicians or other appropriate health
care professionals and any decisions
with respect to the reconsideration
shall be based on applicable
information, including clinical
experience and medical, technical, and
scientific evidence.
``(ii) Effect of national and local
coverage determinations.--
``(I) National coverage
determinations.--If the
Secretary has made a national
coverage determination pursuant
to the requirements established
under the third sentence of
section 1862(a), such
determination shall be binding
on the qualified independent
contractor in making a decision
with respect to a
reconsideration under this
section.
``(II) Local coverage
determinations.--If the
Secretary has made a local
coverage determination, such
determination shall not be
binding on the qualified
independent contractor in
making a decision with respect
to a reconsideration under this
section. Notwithstanding the
previous sentence, the
qualified independent
contractor shall consider the
local coverage determination in
making such decision.
``(III) Absence of national
or local coverage
determination.--In the absence
of such a national coverage
determination or local coverage
determination, the qualified
independent contractor shall
make a decision with respect to
the reconsideration based on
applicable information,
including clinical experience
and medical, technical, and
scientific evidence.
``(C) Deadlines for decisions.--
``(i) Reconsiderations.--Except as
provided in clauses (iii) and (iv), the
qualified independent contractor shall
conduct and conclude a reconsideration
under subparagraph (B), and mail the
notice of the decision with respect to
the reconsideration by not later than
the end of the 30-day period beginning
on the date a request for
reconsideration has been timely filed.
``(ii) Consequences of failure to
meet deadline.--In the case of a
failure by the qualified independent
contractor to mail the notice of the
decision by the end of the period
described in clause (i) or to provide
notice by the end of the period
described in clause (iii), as the case
may be, the party requesting the
reconsideration or appeal may request a
hearing before the Secretary,
notwithstanding any requirements for a
reconsidered determination for purposes
of the party's right to such hearing.
``(iii) Expedited
reconsiderations.--The qualified
independent contractor shall perform an
expedited reconsideration under
subsection (b)(1)(F) as follows:
``(I) Deadline for
decision.--Notwithstanding
section 216(j) and subject to
clause (iv), not later than the
end of the 72-hour period
beginning on the date the
qualified independent
contractor has received a
request for such
reconsideration and has
received such medical or other
records needed for such
reconsideration, the qualified
independent contractor shall
provide notice (by telephone
and in writing) to the
individual and the provider of
services and attending
physician of the individual of
the results of the
reconsideration. Such
reconsideration shall be
conducted regardless of whether
the provider of services or
supplier will charge the
individual for continued
services or whether the
individual will be liable for
payment for such continued
services.
``(II) Consultation with
beneficiary.--In such
reconsideration, the qualified
independent contractor shall
solicit the views of the
individual involved.
``(III) Special rule for
hospital discharges.--A
reconsideration of a discharge
from a hospital shall be
conducted under this clause in
accordance with the provisions
of paragraphs (2), (3), and (4)
of section 1154(e) as in effect
on the date that precedes the
date of the enactment of this
subparagraph.
``(iv) Extension.--An individual
requesting a reconsideration under this
subparagraph may be granted such
additional time as the individual
specifies (not to exceed 14 days) for
the qualified independent contractor to
conclude the reconsideration. The
individual may request such additional
time orally or in writing.
``(D) Limitation on individual reviewing
determinations.--
``(i) Physicians and health care
professional.--No physician or health
care professional under the employ of a
qualified independent contractor may
review--
``(I) determinations
regarding health care services
furnished to a patient if the
physician or health care
professional was directly
responsible for furnishing such
services; or
``(II) determinations
regarding health care services
provided in or by an
institution, organization, or
agency, if the physician or any
member of the family of the
physician or health care
professional has, directly or
indirectly, a significant
financial interest in such
institution, organization, or
agency.
``(ii) Family described.--For
purposes of this paragraph, the family
of a physician or health care
professional includes the spouse (other
than a spouse who is legally separated
from the physician or health care
professional under a decree of divorce
or separate maintenance), children
(including stepchildren and legally
adopted children), grandchildren,
parents, and grandparents of the
physician or health care professional.
``(E) Explanation of decision.--Any
decision with respect to a reconsideration of a
qualified independent contractor shall be in
writing, and shall include a detailed
explanation of the decision as well as a
discussion of the pertinent facts and
applicable regulations applied in making such
decision, and in the case of a determination of
whether an item or service is reasonable and
necessary for the diagnosis or treatment of
illness or injury (under section 1862(a)(1)(A))
an explanation of the medical and scientific
rationale for the decision.
``(F) Notice requirements.--Whenever a
qualified independent contractor makes a
decision with respect to a reconsideration
under this subsection, the qualified
independent contractor shall promptly notify
the entity responsible for the payment of
claims under part A or part B of such decision.
``(G) Dissemination of decisions on
reconsiderations.--Each qualified independent
contractor shall make available all decisions
with respect to reconsiderations of such
qualified independent contractors to fiscal
intermediaries (under section 1816), carriers
(under section 1842), peer review organizations
(under part B of title XI), Medicare+Choice
organizations offering Medicare+Choice plans
under part C, other entities under contract
with the Secretary to make initial
determinations under part A or part B or title
XI, and to the public. The Secretary shall
establish a methodology under which qualified
independent contractors shall carry out this
subparagraph.
``(H) Ensuring consistency in decisions.--
Each qualified independent contractor shall
monitor its decisions with respect to
reconsiderations to ensure the consistency of
such decisions with respect to requests for
reconsideration of similar or related matters.
``(I) Data collection.--
``(i) In general.--Consistent with
the requirements of clause (ii), a
qualified independent contractor shall
collect such information relevant to
its functions, and keep and maintain
such records in such form and manner as
the Secretary may require to carry out
the purposes of this section and shall
permit access to and use of any such
information and records as the
Secretary may require for such
purposes.
``(ii) Type of data collected.--
Each qualified independent contractor
shall keep accurate records of each
decision made, consistent with
standards established by the Secretary
for such purpose. Such records shall be
maintained in an electronic database in
a manner that provides for
identification of the following:
``(I) Specific claims that
give rise to appeals.
``(II) Situations
suggesting the need for
increased education for
providers of services,
physicians, or suppliers.
``(III) Situations
suggesting the need for changes
in national or local coverage
policy.
``(IV) Situations
suggesting the need for changes
in local medical review
policies.
``(iii) Annual reporting.--Each
qualified independent contractor shall
submit annually to the Secretary (or
otherwise as the Secretary may request)
records maintained under this paragraph
for the previous year.
``(J) Hearings by the secretary.--The
qualified independent contractor shall (i)
prepare such information as is required for an
appeal of a decision of the contractor with
respect to a reconsideration to the Secretary
for a hearing, including as necessary,
explanations of issues involved in the decision
and relevant policies, and (ii) participate in
such hearings as required by the Secretary.
``(4) Number of qualified independent
contractors.--The Secretary shall enter into contracts
with not fewer than 12 qualified independent
contractors under this subsection.
``(5) Limitation on qualified independent
contractor liability.--No qualified independent
contractor having a contract with the Secretary under
this subsection and no person who is employed by, or
who has a fiduciary relationship with, any such
qualified independent contractor or who furnishes
professional services to such qualified independent
contractor, shall be held by reason of the performance
of any duty, function, or activity required or
authorized pursuant to this subsection or to a valid
contract entered into under this subsection, to have
violated any criminal law, or to be civilly liable
under any law of the United States or of any State (or
political subdivision thereof) provided due care was
exercised in the performance of such duty, function, or
activity.
``(d) Deadlines for Hearings by the Secretary.--
``(1) Hearing by administrative law judge.--
``(A) In general.--Except as provided in
subparagraph (B), an administrative law judge
shall conduct and conclude a hearing on a
decision of a qualified independent contractor
under subsection (c) and render a decision on
such hearing by not later than the end of the
90-day period beginning on the date a request
for hearing has been timely filed.
``(B) Waiver of deadline by party seeking
hearing.--The 90-day period under subparagraph
(A) shall not apply in the case of a motion or
stipulation by the party requesting the hearing
to waive such period.
``(2) Departmental appeals board review.--
``(A) In general.--The Departmental Appeals
Board of the Department of Health and Human
Services shall conduct and conclude a review of
the decision on a hearing described in
paragraph (1) and make a decision or remand the
case to the administrative law judge for
reconsideration by not later than the end of
the 90-day period beginning on the date a
request for review has been timely filed.
``(B) DAB hearing procedure.--In reviewing
a decision on a hearing under this paragraph,
the Departmental Appeals Board shall review the
case de novo.
``(3) Consequences of failure to meet deadlines.--
``(A) Hearing by administrative law
judge.--In the case of a failure by an
administrative law judge to render a decision
by the end of the period described in paragraph
(1), the party requesting the hearing may
request a review by the Departmental Appeals
Board of the Department of Health and Human
Services, notwithstanding any requirements for
a hearing for purposes of the party's right to
such a review.
``(B) Departmental appeals board review.--
In the case of a failure by the Departmental
Appeals Board to render a decision by the end
of the period described in paragraph (2), the
party requesting the hearing may seek judicial
review, notwithstanding any requirements for a
hearing for purposes of the party's right to
such judicial review.
``(e) Administrative Provisions.--
``(1) Limitation on review of certain
regulations.--A regulation or instruction that relates
to a method for determining the amount of payment under
part B and that was initially issued before January 1,
1981, shall not be subject to judicial review.
``(2) Outreach.--The Secretary shall perform such
outreach activities as are necessary to inform
individuals entitled to benefits under this title and
providers of services and suppliers with respect to
their rights of, and the process for, appeals made
under this section. The Secretary shall use the toll-
free telephone number maintained by the Secretary under
section 1804(b) to provide information regarding appeal
rights and respond to inquiries regarding the status of
appeals.
``(3) Continuing education requirement for
qualified independent contractors and administrative
law judges.--The Secretary shall provide to each
qualified independent contractor, and, in consultation
with the Commissioner of Social Security, to
administrative law judges that decide appeals of
reconsiderations of initial determinations or other
decisions or determinations under this section, such
continuing education with respect to coverage of items
and services under this title or policies of the
Secretary with respect to part B of title XI as is
necessary for such qualified independent contractors
and administrative law judges to make informed
decisions with respect to appeals.
``(4) Reports.--
``(A) Annual report to congress.--The
Secretary shall submit to Congress an annual
report describing the number of appeals for the
previous year, identifying issues that require
administrative or legislative actions, and
including any recommendations of the Secretary
with respect to such actions. The Secretary
shall include in such report an analysis of
determinations by qualified independent
contractors with respect to inconsistent
decisions and an analysis of the causes of any
such inconsistencies.
``(B) Survey.--Not less frequently than
every 5 years, the Secretary shall conduct a
survey of a valid sample of individuals
entitled to benefits under this title who have
filed appeals of determinations under this
section, providers of services, and suppliers
to determine the satisfaction of such
individuals or entities with the process for
appeals of determinations provided for under
this section and education and training
provided by the Secretary with respect to that
process. The Secretary shall submit to Congress
a report describing the results of the survey,
and shall include any recommendations for
administrative or legislative actions that the
Secretary determines appropriate.''.
(b) Applicability of Requirements and Limitations on
Liability of Qualified Independent Contractors to
Medicare+Choice Independent Appeals Contractors.--Section
1852(g)(4) (42 U.S.C. 1395w-22(g)(4)) is amended by adding at
the end the following: ``The provisions of section 1869(c)(5)
shall apply to independent outside entities under contract with
the Secretary under this paragraph.''.
(c) Conforming Amendment.--Section 1154(e) (42 U.S.C.
1320c-3(e)) is amended by striking paragraphs (2), (3), and
(4).
(d) Effective Date.--The amendments made by this section
shall apply with respect to initial determinations made on or
after October 1, 2002.
SEC. 522. REVISIONS TO MEDICARE COVERAGE PROCESS.
(a) Review of Determinations.--Section 1869 (42 U.S.C.
1395ff), as amended by section 521, is further amended by
adding at the end the following new subsection:
``(f) Review of Coverage Determinations.--
``(1) National coverage determinations.--
``(A) In general.--Review of any national
coverage determination shall be subject to the
following limitations:
``(i) Such a determination shall
not be reviewed by any administrative
law judge.
``(ii) Such a determination shall
not be held unlawful or set aside on
the ground that a requirement of
section 553 of title 5, United States
Code, or section 1871(b) of this title,
relating to publication in the Federal
Register or opportunity for public
comment, was not satisfied.
``(iii) Upon the filing of a
complaint by an aggrieved party, such a
determination shall be reviewed by the
Departmental Appeals Board of the
Department of Health and Human
Services. In conducting such a review,
the Departmental Appeals Board--
``(I) shall review the
record and shall permit
discovery and the taking of
evidence to evaluate the
reasonableness of the
determination, if the Board
determines that the record is
incomplete or lacks adequate
information to support the
validity of the determination;
``(II) may, as appropriate,
consult with appropriate
scientific and clinical
experts; and
``(III) shall defer only to
the reasonable findings of
fact, reasonable
interpretations of law, and
reasonable applications of fact
to law by the Secretary.
``(iv) The Secretary shall
implement a decision of the
Departmental Appeals Board within 30
days of receipt of such decision.
``(v) A decision of the
Departmental Appeals Board constitutes
a final agency action and is subject to
judicial review.
``(B) Definition of national coverage
determination.--For purposes of this section,
the term `national coverage determination'
means a determination by the Secretary with
respect to whether or not a particular item or
service is covered nationally under this title,
but does not include a determination of what
code, if any, is assigned to a particular item
or service covered under this title or a
determination with respect to the amount of
payment made for a particular item or service
so covered.
``(2) Local coverage determination.--
``(A) In general.--Review of any local
coverage determination shall be subject to the
following limitations:
``(i) Upon the filing of a
complaint by an aggrieved party, such a
determination shall be reviewed by an
administrative law judge of the Social
Security Administration. The
administrative law judge--
``(I) shall review the
record and shall permit
discovery and the taking of
evidence to evaluate the
reasonableness of the
determination, if the
administrative law judge
determines that the record is
incomplete or lacks adequate
information to support the
validity of the determination;
``(II) may, as appropriate,
consult with appropriate
scientific and clinical
experts; and
``(III) shall defer only to
the reasonable findings of
fact, reasonable
interpretations of law, and
reasonable applications of fact
to law by the Secretary.
``(ii) Upon the filing of a
complaint by an aggrieved party, a
decision of an administrative law judge
under clause (i) shall be reviewed by
the Departmental Appeals Board of the
Department of Health and Human
Services.
``(iii) The Secretary shall
implement a decision of the
administrative law judge or the
Departmental Appeals Board within 30
days of receipt of such decision.
``(iv) A decision of the
Departmental Appeals Board constitutes
a final agency action and is subject to
judicial review.
``(B) Definition of local coverage
determination.--For purposes of this section,
the term `local coverage determination' means a
determination by a fiscal intermediary or a
carrier under part A or part B, as applicable,
respecting whether or not a particular item or
service is covered on an intermediary- or
carrier-wide basis under such parts, in
accordance with section 1862(a)(1)(A).
``(3) No material issues of fact in dispute.--In
the case of a determination that may otherwise be
subject to review under paragraph (1)(A)(iii) or
paragraph (2)(A)(i), where the moving party alleges
that--
``(A) there are no material issues of fact
in dispute, and
``(B) the only issue of law is the
constitutionality of a provision of this title,
or that a regulation, determination, or ruling
by the Secretary is invalid,
the moving party may seek review by a court of
competent jurisdiction without filing a complaint under
such paragraph and without otherwise exhausting other
administrative remedies.
``(4) Pending national coverage determinations.--
``(A) In general.--In the event the
Secretary has not issued a national coverage or
noncoverage determination with respect to a
particular type or class of items or services,
an aggrieved person (as described in paragraph
(5)) may submit to the Secretary a request to
make such a determination with respect to such
items or services. By not later than the end of
the 90-day period beginning on the date the
Secretary receives such a request
(notwithstanding the receipt by the Secretary
of new evidence (if any) during such 90-day
period), the Secretary shall take one of the
following actions:
``(i) Issue a national coverage
determination, with or without
limitations.
``(ii) Issue a national noncoverage
determination.
``(iii) Issue a determination that
no national coverage or noncoverage
determination is appropriate as of the
end of such 90-day period with respect
to national coverage of such items or
services.
``(iv) Issue a notice that states
that the Secretary has not completed a
review of the request for a national
coverage determination and that
includes an identification of the
remaining steps in the Secretary's
review process and a deadline by which
the Secretary will complete the review
and take an action described in
subclause (I), (II), or (III).
``(B) Deemed action by the secretary.--In
the case of an action described in clause
(i)(IV), if the Secretary fails to take an
action referred to in such clause by the
deadline specified by the Secretary under such
clause, then the Secretary is deemed to have
taken an action described in clause (i)(III) as
of the deadline.
``(C) Explanation of determination.--When
issuing a determination under clause (i), the
Secretary shall include an explanation of the
basis for the determination. An action taken
under clause (i) (other than subclause (IV)) is
deemed to be a national coverage determination
for purposes of review under subparagraph (A).
``(5) Standing.--An action under this subsection
seeking review of a national coverage determination or
local coverage determination may be initiated only by
individuals entitled to benefits under part A, or
enrolled under part B, or both, who are in need of the
items or services that are the subject of the coverage
determination.
``(6) Publication on the internet of decisions of
hearings of the secretary.--Each decision of a hearing
by the Secretary with respect to a national coverage
determination shall be made public, and the Secretary
shall publish each decision on the Medicare Internet
site of the Department of Health and Human Services.
The Secretary shall remove from such decision any
information that would identify any individual,
provider of services, or supplier.
``(7) Annual report on national coverage
determinations.--
``(A) In general.--Not later than December
1 of each year, beginning in 2001, the
Secretary shall submit to Congress a report
that sets forth a detailed compilation of the
actual time periods that were necessary to
complete and fully implement national coverage
determinations that were made in the previous
fiscal year for items, services, or medical
devices not previously covered as a benefit
under this title, including, with respect to
each new item, service, or medical device, a
statement of the time taken by the Secretary to
make and implement the necessary coverage,
coding, and payment determinations, including
the time taken to complete each significant
step in the process of making and implementing
such determinations.
``(B) Publication of reports on the
internet.--The Secretary shall publish each
report submitted under clause (i) on the
medicare Internet site of the Department of
Health and Human Services.
``(8) Construction.--Nothing in this subsection
shall be construed as permitting administrative or
judicial review pursuant to this section insofar as
such review is explicitly prohibited or restricted
under another provision of law.''.
(b) Establishment of a Process for Coverage
Determinations.--Section 1862(a) (42 U.S.C. 1395y(a)) is
amended by adding at the end the following new sentence: ``In
making a national coverage determination (as defined in
paragraph (1)(B) of section 1869(f)) the Secretary shall ensure
that the public is afforded notice and opportunity to comment
prior to implementation by the Secretary of the determination;
meetings of advisory committees established under section
1114(f) with respect to the determination are made on the
record; in making the determination, the Secretary has
considered applicable information (including clinical
experience and medical, technical, and scientific evidence)
with respect to the subject matter of the determination; and in
the determination, provide a clear statement of the basis for
the determination (including responses to comments received
from the public), the assumptions underlying that basis, and
make available to the public the data (other than proprietary
data) considered in making the determination.''.
(c) Improvements to the Medicare Advisory Committee
Process.--Section 1114 (42 U.S.C. 1314) is amended by adding at
the end the following new subsection:
``(i)(1) Any advisory committee appointed under subsection
(f) to advise the Secretary on matters relating to the
interpretation, application, or implementation of section
1862(a)(1) shall assure the full participation of a nonvoting
member in the deliberations of the advisory committee, and
shall provide such nonvoting member access to all information
and data made available to voting members of the advisory
committee, other than information that--
``(A) is exempt from disclosure pursuant to
subsection (a) of section 552 of title 5, United States
Code, by reason of subsection (b)(4) of such section
(relating to trade secrets); or
``(B) the Secretary determines would present a
conflict of interest relating to such nonvoting member.
``(2) If an advisory committee described in paragraph (1)
organizes into panels of experts according to types of items or
services considered by the advisory committee, any such panel
of experts may report any recommendation with respect to such
items or services directly to the Secretary without the prior
approval of the advisory committee or an executive committee
thereof.''.
(d) Effective Date.--The amendments made by this section
shall apply with respect to--
(1) a review of any national or local coverage
determination filed,
(2) a request to make such a determination made,
and
(3) a national coverage determination made,
on or after October 1, 2001.
Subtitle D--Improving Access to New Technologies
SEC. 531. REIMBURSEMENT IMPROVEMENTS FOR NEW CLINICAL LABORATORY TESTS
AND DURABLE MEDICAL EQUIPMENT.
(a) Payment Rule for New Laboratory Tests.--Section
1833(h)(4)(B)(viii) (42 U.S.C. 1395l(h)(4)(B)(viii)) is amended
by inserting before the period at the end the following: ``(or
100 percent of such median in the case of a clinical diagnostic
laboratory test performed on or after January 1, 2001, that the
Secretary determines is a new test for which no limitation
amount has previously been established under this
subparagraph)''.
(b) Establishment of Coding and Payment Procedures for New
Clinical Diagnostic Laboratory Tests and Other Items on a Fee
Schedule.--Not later than 1 year after the date of the
enactment of this Act, the Secretary of Health and Human
Services shall establish procedures for coding and payment
determinations for the categories of new clinical diagnostic
laboratory tests and new durable medical equipment under part B
of title XVIII of the Social Security Act that permit public
consultation in a manner consistent with the procedures
established for implementing coding modifications for ICD-9-CM.
(c) Report on Procedures Used for Advanced, Improved
Technologies.--Not later than 1 year after the date of the
enactment of this Act, the Secretary of Health and Human
Services shall submit to Congress a report that identifies the
specific procedures used by the Secretary under part B of title
XVIII of the Social Security Act to adjust payments for
clinical diagnostic laboratory tests and durable medical
equipment which are classified to existing codes where, because
of an advance in technology with respect to the test or
equipment, there has been a significant increase or decrease in
the resources used in the test or in the manufacture of the
equipment, and there has been a significant improvement in the
performance of the test or equipment. The report shall include
such recommendations for changes in law as may be necessary to
assure fair and appropriate payment levels under such part for
such improved tests and equipment as reflects increased costs
necessary to produce improved results.
SEC. 532. RETENTION OF HCPCS LEVEL III CODES.
(a) In General.--The Secretary of Health and Human Services
shall maintain and continue the use of level III codes of the
HCPCS coding system (as such system was in effect on August 16,
2000) through December 31, 2003, and shall make such codes
available to the public.
(b) Definition.--For purposes of this section, the term
``HCPCS Level III codes'' means the alphanumeric codes for
local use under the Health Care Financing Administration Common
Procedure Coding System (HCPCS).
SEC. 533. RECOGNITION OF NEW MEDICAL TECHNOLOGIES UNDER INPATIENT
HOSPITAL PPS.
(a) Expediting Recognition of New Technologies Into
Inpatient PPS Coding System.--
(1) Report.--Not later than April 1, 2001, the
Secretary of Health and Human Services shall submit to
Congress a report on methods of expeditiously
incorporating new medical services and technologies
into the clinical coding system used with respect to
payment for inpatient hospital services furnished under
the medicare program under title XVIII of the Social
Security Act, together with a detailed description of
the Secretary's preferred methods to achieve this
purpose.
(2) Implementation.--Not later than October 1,
2001, the Secretary shall implement the preferred
methods described in the report transmitted pursuant to
paragraph (1).
(b) Ensuring Appropriate Payments for Hospitals
Incorporating New Medical Services and Technologies.--
(1) Establishment of mechanism.--Section 1886(d)(5)
(42 U.S.C. 1395ww(d)(5)) is amended by adding at the
end the following new subparagraphs:
``(K)(i) Effective for discharges beginning on or after
October 1, 2001, the Secretary shall establish a mechanism to
recognize the costs of new medical services and technologies
under the payment system established under this subsection.
Such mechanism shall be established after notice and
opportunity for public comment (in the publications required by
subsection (e)(5) for a fiscal year or otherwise).
``(ii) The mechanism established pursuant to clause (i)
shall--
``(I) apply to a new medical service or technology
if, based on the estimated costs incurred with respect
to discharges involving such service or technology, the
DRG prospective payment rate otherwise applicable to
such discharges under this subsection is inadequate;
``(II) provide for the collection of data with
respect to the costs of a new medical service or
technology described in subclause (I) for a period of
not less than two years and not more than three years
beginning on the date on which an inpatient hospital
code is issued with respect to the service or
technology;
``(III) subject to paragraph (4)(C)(iii), provide
for additional payment to be made under this subsection
with respect to discharges involving a new medical
service or technology described in subclause (I) that
occur during the period described in subclause (II) in
an amount that adequately reflects the estimated
average cost of such service or technology; and
``(IV) provide that discharges involving such a
service or technology that occur after the close of the
period described in subclause (II) will be classified
within a new or existing diagnosis-related group with a
weighting factor under paragraph (4)(B) that is derived
from cost data collected with respect to discharges
occurring during such period.
``(iii) For purposes of clause (ii)(II), the term
`inpatient hospital code' means any code that is used with
respect to inpatient hospital services for which payment may be
made under this subsection and includes an alphanumeric code
issued under the International Classification of Diseases, 9th
Revision, Clinical Modification (`ICD-9-CM') and its subsequent
revisions.
``(iv) For purposes of clause (ii)(III), the term
`additional payment' means, with respect to a discharge for a
new medical service or technology described in clause (ii)(I),
an amount that exceeds the prospective payment rate otherwise
applicable under this subsection to discharges involving such
service or technology that would be made but for this
subparagraph.
``(v) The requirement under clause (ii)(III) for an
additional payment may be satisfied by means of a new-
technology group (described in subparagraph (L)), an add-on
payment, a payment adjustment, or any other similar mechanism
for increasing the amount otherwise payable with respect to a
discharge under this subsection. The Secretary may not
establish a separate fee schedule for such additional payment
for such services and technologies, by utilizing a methodology
established under subsection (a) or (h) of section 1834 to
determine the amount of such additional payment, or by other
similar mechanisms or methodologies.
``(vi) For purposes of this subparagraph and subparagraph
(L), a medical service or technology will be considered a `new
medical service or technology' if the service or technology
meets criteria established by the Secretary after notice and an
opportunity for public comment.
``(L)(i) In establishing the mechanism under subparagraph
(K), the Secretary may establish new-technology groups into
which a new medical service or technology will be classified
if, based on the estimated average costs incurred with respect
to discharges involving such service or technology, the DRG
prospective payment rate otherwise applicable to such
discharges under this subsection is inadequate.
``(ii) Such groups--
``(I) shall not be based on the costs associated
with a specific new medical service or technology; but
``(II) shall, in combination with the applicable
standardized amounts and the weighting factors assigned
to such groups under paragraph (4)(B), reflect such
cost cohorts as the Secretary determines are
appropriate for all new medical services and
technologies that are likely to be provided as
inpatient hospital services in a fiscal year.
``(iii) The methodology for classifying specific hospital
discharges within a diagnosis-related group under paragraph
(4)(A) or a new-technology group shall provide that a specific
hospital discharge may not be classified within both a
diagnosis-related group and a new-technology group.''.
(2) Prior consultation.--The Secretary of Health
and Human Services shall consult with groups
representing hospitals, physicians, and manufacturers
of new medical technologies before publishing the
notice of proposed rulemaking required by section
1886(d)(5)(K)(i) of the Social Security Act (as added
by paragraph (1)).
(3) Conforming amendment.--Section 1886(d)(4)(C)(i)
(42 U.S.C. 1395ww(d)(4)(C)(i)) is amended by striking
``technology,'' and inserting ``technology (including a
new medical service or technology under paragraph
(5)(K)),''.
Subtitle E--Other Provisions
SEC. 541. INCREASE IN REIMBURSEMENT FOR BAD DEBT.
Section 1861(v)(1)(T) (42 U.S.C. 1395x(v)(1)(T)) is
amended--
(1) in clause (ii), by striking ``and'' at the end;
(2) in clause (iii)--
(A) by striking ``during a subsequent
fiscal year'' and inserting ``during fiscal
year 2000''; and
(B) by striking the period at the end and
inserting ``, and''; and
(3) by adding at the end the following new clause:
``(iv) for cost reporting periods beginning during
a subsequent fiscal year, by 30 percent of such amount
otherwise allowable.''.
SEC. 542. TREATMENT OF CERTAIN PHYSICIAN PATHOLOGY SERVICES UNDER
MEDICARE.
(a) In General.--When an independent laboratory furnishes
the technical component of a physician pathology service to a
fee-for-service medicare beneficiary who is an inpatient or
outpatient of a covered hospital, the Secretary of Health and
Human Services shall treat such component as a service for
which payment shall be made to the laboratory under section
1848 of the Social Security Act (42 U.S.C. 1395w-4) and not as
an inpatient hospital service for which payment is made to the
hospital under section 1886(d) of such Act (42 U.S.C.
1395ww(d)) or as an outpatient hospital service for which
payment is made to the hospital under section 1833(t) of such
Act (42 U.S.C. 1395l(t)).
(b) Definitions.--For purposes of this section:
(1) Covered hospital.--The term ``covered
hospital'' means, with respect to an inpatient or an
outpatient, a hospital that had an arrangement with an
independent laboratory that was in effect as of July
22, 1999, under which a laboratory furnished the
technical component of physician pathology services to
fee-for-service medicare beneficiaries who were
hospital inpatients or outpatients, respectively, and
submitted claims for payment for such component to a
medicare carrier (that has a contract with the
Secretary under section 1842 of the Social Security
Act, 42 U.S.C. 1395u) and not to such hospital.
(2) Fee-for-service medicare beneficiary.--The term
``fee-for-service medicare beneficiary'' means an
individual who--
(A) is entitled to benefits under part A,
or enrolled under part B, or both, of such
title; and
(B) is not enrolled in any of the
following:
(i) A Medicare+Choice plan under
part C of such title.
(ii) A plan offered by an eligible
organization under section 1876 of such
Act (42 U.S.C. 1395mm).
(iii) A program of all-inclusive
care for the elderly (PACE) under
section 1894 of such Act (42 U.S.C.
1395eee).
(iv) A social health maintenance
organization (SHMO) demonstration
project established under section
4018(b) of the Omnibus Budget
Reconciliation Act of 1987 (Public Law
100-203).
(c) Effective Date.--This section shall apply to services
furnished during the 2-year period beginning on January 1,
2001.
(d) GAO Report.--
(1) Study.--The Comptroller General of the United
States shall conduct a study of the effects of the
previous provisions of this section on hospitals and
laboratories and access of fee-for-service medicare
beneficiaries to the technical component of physician
pathology services.
(2) Report.--Not later than April 1, 2002, the
Comptroller General shall submit to Congress a report
on such study. The report shall include recommendations
about whether such provisions should be extended after
the end of the period specified in subsection (c) for
either or both inpatient and outpatient hospital
services, and whether the provisions should be extended
to other hospitals.
SEC. 543. EXTENSION OF ADVISORY OPINION AUTHORITY.
Section 1128D(b)(6) (42 U.S.C. 1320a-7d(b)(6)) is amended
by striking ``and before the date which is 4 years after such
date of enactment''.
SEC. 544. CHANGE IN ANNUAL MEDPAC REPORTING.
(a) Revision of Deadlines for Submission of Reports.--
(1) In general.--Section 1805(b)(1)(D) (42 U.S.C.
1395b-6(b)(1)(D)) is amended by striking ``June 1 of
each year (beginning with 1998),'' and inserting ``June
15 of each year,''.
(2) Effective date.--The amendment made by
paragraph (1) shall apply beginning with 2001.
(b) Requirement for on the Record Votes on
Recommendations.--Section 1805(b) (42 U.S.C. 1395b-6(b)) is
amended by adding at the end the following new paragraph:
``(7) Voting and reporting requirements.--With
respect to each recommendation contained in a report
submitted under paragraph (1), each member of the
Commission shall vote on the recommendation, and the
Commission shall include, by member, the results of
that vote in the report containing the
recommendation.''.
SEC. 545. DEVELOPMENT OF PATIENT ASSESSMENT INSTRUMENTS.
(a) Development.--
(1) In general.--Not later than January 1, 2005,
the Secretary of Health and Human Services shall submit
to the Committee on Ways and Means and the Committee on
Commerce of the House of Representatives and the
Committee on Finance of the Senate a report on the
development of standard instruments for the assessment
of the health and functional status of patients, for
whom items and services described in subsection (b) are
furnished, and include in the report a recommendation
on the use of such standard instruments for payment
purposes.
(2) Design for comparison of common elements.--The
Secretary shall design such standard instruments in a
manner such that--
(A) elements that are common to the items
and services described in subsection (b) may be
readily comparable and are statistically
compatible;
(B) only elements necessary to meet program
objectives are collected; and
(C) the standard instruments supersede any
other assessment instrument used before that
date.
(3) Consultation.--In developing an assessment
instrument under paragraph (1), the Secretary shall
consult with the Medicare Payment Advisory Commission,
the Agency for Healthcare Research and Quality, and
qualified organizations representing providers of
services and suppliers under title XVIII.
(b) Description of Services.--For purposes of subsection
(a), items and services described in this subsection are those
items and services furnished to individuals entitled to
benefits under part A, or enrolled under part B, or both of
title XVIII of the Social Security Act for which payment is
made under such title, and include the following:
(1) Inpatient and outpatient hospital services.
(2) Inpatient and outpatient rehabilitation
services.
(3) Covered skilled nursing facility services.
(4) Home health services.
(5) Physical or occupational therapy or speech-
language pathology services.
(6) Items and services furnished to such
individuals determined to have end stage renal disease.
(7) Partial hospitalization services and other
mental health services.
(8) Any other service for which payment is made
under such title as the Secretary determines to be
appropriate.
SEC. 546. GAO REPORT ON IMPACT OF THE EMERGENCY MEDICAL TREATMENT AND
ACTIVE LABOR ACT (EMTALA) ON HOSPITAL EMERGENCY
DEPARTMENTS.
(a) Report.--The Comptroller General of the United States
shall submit a report to the Committee on Commerce and the
Committee on Ways and Means of the House of Representatives and
the Committee on Finance of the Senate by May 1, 2001, on the
effect of the Emergency Medical Treatment and Active Labor Act
on hospitals, emergency physicians, and physicians covering
emergency department call throughout the United States.
(b) Report Requirements.--The report should evaluate--
(1) the extent to which hospitals, emergency
physicians, and physicians covering emergency
department call provide uncompensated services in
relation to the requirements of EMTALA;
(2) the extent to which the regulatory requirements
and enforcement of EMTALA have expanded beyond the
legislation's original intent;
(3) estimates for the total dollar amount of
EMTALA-related care uncompensated costs to emergency
physicians, physicians covering emergency department
call, hospital emergency departments, and other
hospital services;
(4) the extent to which different portions of the
United States may be experiencing different levels of
uncompensated EMTALA-related care;
(5) the extent to which EMTALA would be classified
as an unfunded mandate if it were enacted today;
(6) the extent to which States have programs to
provide financial support for such uncompensated care;
(7) possible sources of funds, including medicare
hospital bad debt accounts, that are available to
hospitals to assist with the cost of such uncompensated
care; and
(8) the financial strain that illegal immigration
populations, the uninsured, and the underinsured place
on hospital emergency departments, other hospital
services, emergency physicians, and physicians covering
emergency department call.
(c) Definition.--In this section, the terms ``Emergency
Medical Treatment and Active Labor Act'' and ``EMTALA'' mean
section 1867 of the Social Security Act (42 U.S.C. 1395dd).
SEC. 547. CLARIFICATION OF APPLICATION OF TEMPORARY PAYMENT INCREASES
FOR 2001.
(a) Inpatient Hospital Services.--The payment increase
provided under the following sections shall not apply to
discharges occurring after fiscal year 2001 and shall not be
taken into account in calculating the payment amounts
applicable for discharges occurring after such fiscal year:
(1) Section 301(b)(2)(A) (relating to acute care
hospital payment update).
(2) Section 302(b) (relating to IME percentage
adjustment).
(3) Section 303(b)(2) (relating to DSH payments).
(b) Skilled Nursing Facility Services.--The payment
increase provided under section 311(b)(2) (relating to covered
skilled nursing facility services) shall not apply to services
furnished after fiscal year 2001 and shall not be taken into
account in calculating the payment amounts applicable for
services furnished after such fiscal year.
(c) Home Health Services.--
(1) Transitional allowance for full marketbasket
increase.--The payment increase provided under section
502(b)(1)(B) shall not apply to episodes and visits
ending after fiscal year 2001 and shall not be taken
into account in calculating the payment amounts
applicable for subsequent episodes and visits.
(2) Temporary increase for rural home health
services.--The payment increase provided under section
508(a) for the period beginning on April 1, 2001, and
ending on September 30, 2002, shall not apply to
episodes and visits ending after such period, and shall
not be taken into account in calculating the payment
amounts applicable for episodes and visits occurring
after such period.
(d) Calendar Year 2001 Provisions.--The payment increase
provided under the following sections shall not apply after
calendar year 2001 and shall not be taken into account in
calculating the payment amounts applicable for items and
services furnished after such year:
(1) Section 401(c)(2) (relating to covered OPD
services).
(2) Section 422(e)(2) (relating to renal dialysis
services paid for on a composite rate basis).
(3) Section 423(a)(2)(B) (relating to ambulance
services).
(4) Section 425(b)(2) (relating to durable medical
equipment).
(5) Section 426(b)(2) (relating to prosthetic
devices and orthotics and prosthetics).
TITLE VI--PROVISIONS RELATING TO PART C (MEDICARE+CHOICE PROGRAM) AND
OTHER MEDICARE MANAGED CARE PROVISIONS
Subtitle A--Medicare+Choice Payment Reforms
SEC. 601. INCREASE IN MINIMUM PAYMENT AMOUNT.
(a) In General.--Section 1853(c)(1)(B) (42 U.S.C. 1395w-
23(c)(1)(B)) is amended--
(1) by redesignating clause (ii) as clause (iv);
(2) by inserting after clause (i) the following new
clauses:
``(ii) For 1999 and 2000, the
minimum amount determined under clause
(i) or this clause, respectively, for
the preceding year, increased by the
national per capita Medicare+Choice
growth percentage described in
paragraph (6)(A) applicable to 1999 or
2000, respectively.
``(iii)(I) Subject to subclause
(II), for 2001, for any area in a
Metropolitan Statistical Area with a
population of more than 250,000, $525,
and for any other area $475.
``(II) In the case of an area
outside the 50 States and the District
of Columbia, the amount specified in
this clause shall not exceed 120
percent of the amount determined under
clause (ii) for such area for 2000.'';
and
(3) in clause (iv), as so redesignated--
(A) by striking ``a succeeding year'' and
inserting ``2002 and each succeeding year'';
and
(B) by striking ``clause (i)'' and
inserting ``clause (iii)''.
(b) Special Rule for January and February of 2001.--
(1) In general.--Notwithstanding the amendments
made by subsection (a), for purposes of making payments
under section 1853 of the Social Security Act (42
U.S.C. 1395w-23) for January and February 2001, the
annual Medicare+Choice capitation rate for a
Medicare+Choice payment area shall be calculated, and
the excess amount under section 1854(f)(1)(B) of such
Act (42 U.S.C. 1395w-24(f)(1)(B)) shall be determined,
as if such amendments had not been enacted.
(2) Construction.--Paragraph (1) shall not be taken
into account in computing such capitation rate for 2002
and subsequent years.
SEC. 602. INCREASE IN MINIMUM PERCENTAGE INCREASE.
(a) In General.--Section 1853(c)(1)(C) (42 U.S.C. 1395w-
23(c)(1)(C)) is amended--
(1) by redesignating clause (ii) as clause (iv);
(2) by inserting after clause (i) the following new
clauses:
``(ii) For 1999 and 2000, 102
percent of the annual Medicare+Choice
capitation rate under this paragraph
for the area for the previous year.
``(iii) For 2001, 103 percent of
the annual Medicare+Choice capitation
rate under this paragraph for the area
for 2000.''; and
(3) in clause (iv), as so redesignated, by striking
``a subsequent year'' and inserting ``2002 and each
succeeding year''.
(b) Application of Special Rule for January and February of
2001.--The provisions of section 601(b) shall apply with
respect to the amendments made by subsection (a) in the same
manner as they apply to the amendments made by section 601(a).
SEC. 603. PHASE-IN OF RISK ADJUSTMENT.
Section 1853(a)(3)(C) (42 U.S.C. 1395w-23(a)(3)(C)) is
amended--
(1) in clause (ii)--
(A) in subclause (I), by striking ``and
2001'' and inserting ``and each succeeding year
through 2003'' and by striking ``and'' at the
end; and
(B) by striking subclause (II) and
inserting the following new subclauses:
``(II) 30 percent of such
capitation rate in 2004;
``(III) 50 percent of such
capitation rate in 2005;
``(IV) 75 percent of such
capitation rate in 2006; and
``(V) 100 percent of such
capitation rate in 2007 and
succeeding years.''; and
(2) by adding at the end the following new clause:
``(iii) Data for risk adjustment
methodology.--Such risk adjustment
methodology for 2004 and each
succeeding year, shall be based on data
from inpatient hospital and ambulatory
settings.''.
SEC. 604. TRANSITION TO REVISED MEDICARE+CHOICE PAYMENT RATES.
(a) Announcement of Revised Medicare+Choice Payment
Rates.--Within 2 weeks after the date of the enactment of this
Act, the Secretary of Health and Human Services shall
determine, and shall announce (in a manner intended to provide
notice to interested parties) Medicare+Choice capitation rates
under section 1853 of the Social Security Act (42 U.S.C. 1395w-
23) for 2001, revised in accordance with the provisions of this
Act.
(b) Reentry Into Program Permitted for Medicare+Choice
Programs.--A Medicare+Choice organization that provided notice
to the Secretary of Health and Human Services before the date
of the enactment of this Act that it was terminating its
contract under part C of title XVIII of the Social Security Act
or was reducing the service area of a Medicare+Choice plan
offered under such part shall be permitted to continue
participation under such part, or to maintain the service area
of such plan, for 2001 if it submits the Secretary with the
information described in section 1854(a)(1) of the Social
Security Act (42 U.S.C. 1395w-24(a)(1)) within 2 weeks after
the date revised rates are announced by the Secretary under
subsection (a).
(c) Revised Submission of Proposed Premiums and Related
Information.--If--
(1) a Medicare+Choice organization provided notice
to the Secretary of Health and Human Services as of
July 3, 2000, that it was renewing its contract under
part C of title XVIII of the Social Security Act for
all or part of the service area or areas served under
its current contract, and
(2) any part of the service area or areas addressed
in such notice includes a payment area for which the
Medicare+Choice capitation rate under section 1853(c)
of such Act (42 U.S.C. 1395w-23(c)) for 2001, as
determined under subsection (a), is higher than the
rate previously determined for such year,
such organization shall revise its submission of the
information described in section 1854(a)(1) of the Social
Security Act (42 U.S.C. 1395w-24(a)(1)), and shall submit such
revised information to the Secretary, within 2 weeks after the
date revised rates are announced by the Secretary under
subsection (a). In making such submission, the organization may
only reduce beneficiary premiums, reduce beneficiary cost-
sharing, enhance benefits, utilize the stabilization fund
described in section 1854(f)(2) of such Act (42 U.S.C. 1395w-
24(f)(2)), or stabilize or enhance beneficiary access to
providers (so long as such stabilization or enhancement does
not result in increased beneficiary premiums, increased
beneficiary cost-sharing, or reduced benefits).
(d) Waiver of Limits on Stabilization Fund.--Any regulatory
provision that limits the proportion of the excess amount that
can be withheld in such stabilization fund for a contract
period shall not apply with respect to submissions described in
subsections (b) and (c).
(e) Disregard of New Rate Announcement in Applying Pass-
Through for New National Coverage Determinations.--For purposes
of applying section 1852(a)(5) of the Social Security Act (42
U.S.C. 1395w-22(a)(5)), the announcement of revised rates under
subsection (a) shall not be treated as an announcement under
section 1853(b) of such Act (42 U.S.C. 1395w-23(b)).
SEC. 605. REVISION OF PAYMENT RATES FOR ESRD PATIENTS ENROLLED IN
MEDICARE+CHOICE PLANS.
(a) In General.--Section 1853(a)(1)(B) (42 U.S.C. 1395w-
23(a)(1)(B)) is amended by adding at the end the following:
``In establishing such rates, the Secretary shall provide for
appropriate adjustments to increase each rate to reflect the
demonstration rate (including the risk adjustment methodology
associated with such rate) of the social health maintenance
organization end-stage renal disease capitation demonstrations
(established by section 2355 of the Deficit Reduction Act of
1984, as amended by section 13567(b) of the Omnibus Budget
Reconciliation Act of 1993), and shall compute such rates by
taking into account such factors as renal treatment modality,
age, and the underlying cause of the end-stage renal
disease.''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to payments for months beginning with January 2002.
(c) Publication.--Not later than 6 months after the date of
the enactment of this Act, the Secretary of Health and Human
Services shall publish for public comment a description of the
appropriate adjustments described in the last sentence of
section 1853(a)(1)(B) of the Social Security Act (42 U.S.C.
1395w-23(a)(1)(B)), as added by subsection (a). The Secretary
shall publish such adjustments in final form by not later than
July 1, 2001, so that the amendment made by subsection (a) is
implemented on a timely basis consistent with subsection (b).
SEC. 606. PERMITTING PREMIUM REDUCTIONS AS ADDITIONAL BENEFITS UNDER
MEDICARE+CHOICE PLANS.
(a) In General.--
(1) Authorization of part b premium reductions.--
Section 1854(f)(1) (42 U.S.C. 1395w-24(f)(1)) is
amended--
(A) by redesignating subparagraph (E) as
subparagraph (F); and
(B) by inserting after subparagraph (D) the
following new subparagraph:
``(E) Premium reductions.--
``(i) In general.--Subject to
clause (ii), as part of providing any
additional benefits required under
subparagraph (A), a Medicare+Choice
organization may elect a reduction in
its payments under section
1853(a)(1)(A) with respect to a
Medicare+Choice plan and the Secretary
shall apply such reduction to reduce
the premium under section 1839 of each
enrollee in such plan as provided in
section 1840(i).
``(ii) Amount of reduction.--The
amount of the reduction under clause
(i) with respect to any enrollee in a
Medicare+Choice plan--
``(I) may not exceed 125
percent of the premium
described under section
1839(a)(3); and
``(II) shall apply
uniformly to each enrollee of
the Medicare+Choice plan to
which such reduction
applies.''.
(2) Conforming amendments.--
(A) Adjustment of payments to
medicare+choice organizations.--Section
1853(a)(1)(A) (42 U.S.C. 1395w-23(a)(1)(A)) is
amended by inserting ``reduced by the amount of
any reduction elected under section
1854(f)(1)(E) and'' after ``for that area,''.
(B) Adjustment and payment of part b
premiums.--
(i) Adjustment of premiums.--
Section 1839(a)(2) (42 U.S.C.
1395r(a)(2)) is amended by striking
``shall'' and all that follows and
inserting the following: ``shall be the
amount determined under paragraph (3),
adjusted as required in accordance with
subsections (b), (c), and (f), and to
reflect 80 percent of any reduction
elected under section 1854(f)(1)(E).''.
(ii) Payment of premiums.--Section
1840 (42 U.S.C. 1395s) is amended by
adding at the end the following new
subsection:
``(i) In the case of an individual enrolled in a
Medicare+Choice plan, the Secretary shall provide for necessary
adjustments of the monthly beneficiary premium to reflect 80
percent of any reduction elected under section 1854(f)(1)(E).
To the extent to which the Secretary determines that such an
adjustment is appropriate, with the concurrence of any agency
responsible for the administration of such benefits, such
premium adjustment may be provided directly, as an adjustment
to any social security, railroad retirement, or civil service
retirement benefits, or, in the case of an individual who
receives medical assistance under title XIX for medicare costs
described in section 1905(p)(3)(A)(ii), as an adjustment to the
amount otherwise owed by the State for such medical
assistance.''.
(C) Information comparing plan premiums
under part c.--Section 1851(d)(4)(B) (42 U.S.C.
1395w-21(d)(4)(B)) is amended--
(i) by striking ``Premiums.--The''
and inserting ``Premiums.--
``(i) In general.--The''; and
(ii) by adding at the end the
following new clause:
``(ii) Reductions.--The reduction
in part B premiums, if any.''.
(D) Treatment of reduction for purposes of
determining government contribution under part
b.--Section 1844 (42 U.S.C. 1395w) is amended
by adding at the end the following new
subsection:
``(c) The Secretary shall determine the Government
contribution under subparagraphs (A) and (B) of subsection
(a)(1) without regard to any premium reduction resulting from
an election under section 1854(f)(1)(E).''.
(b) Effective Date.--The amendments made by subsection (a)
shall apply to years beginning with 2003.
SEC. 607. FULL IMPLEMENTATION OF RISK ADJUSTMENT FOR CONGESTIVE HEART
FAILURE ENROLLEES FOR 2001.
(a) In General.--Section 1853(a)(3)(C) (42 U.S.C. 1395w-
23(a)(3)(C)) is amended--
(1) in clause (ii), by striking ``Such risk
adjustment'' and inserting ``Except as provided in
clause (iii), such risk adjustment''; and
(2) by adding at the end the following new clause:
``(iii) Full implementation of risk
adjustment for congestive heart failure
enrollees for 2001.--
``(I) Exemption from phase-
in.--Subject to subclause (II),
the Secretary shall fully
implement the risk adjustment
methodology described in clause
(i) with respect to each
individual who has had a
qualifying congestive heart
failure inpatient diagnosis (as
determined by the Secretary
under such risk adjustment
methodology) during the period
beginning on July 1, 1999, and
ending on June 30, 2000, and
who is enrolled in a
coordinated care plan that is
the only coordinated care plan
offered on January 1, 2001, in
the service area of the
individual.
``(II) Period of
application.--Subclause (I)
shall only apply during the 1-
year period beginning on
January 1, 2001.''.
(b) Exclusion From Determination of the Budget Neutrality
Factor.--Section 1853(c)(5) (42 U.S.C. 1395w-23(c)(5)) is
amended by striking ``subsection (i)'' and inserting
``subsections (a)(3)(C)(iii) and (i)''.
SEC. 608. EXPANSION OF APPLICATION OF MEDICARE+CHOICE NEW ENTRY BONUS.
(a) In General.--Section 1853(i)(1) (42 U.S.C. 1395w-
23(i)(1)) is amended in the matter preceding subparagraph (A)
by inserting ``, or filed notice with the Secretary as of
October 3, 2000, that they will not be offering such a plan as
of January 1, 2001'' after ``January 1, 2000''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply as if included in the enactment of BBRA.
SEC. 609. REPORT ON INCLUSION OF CERTAIN COSTS OF THE DEPARTMENT OF
VETERANS AFFAIRS AND MILITARY FACILITY SERVICES IN
CALCULATING MEDICARE+CHOICE PAYMENT RATES.
The Secretary of Health and Human Services shall report to
Congress by not later than January 1, 2003, on a method to
phase-in the costs of military facility services furnished by
the Department of Veterans Affairs, and the costs of military
facility services furnished by the Department of Defense, to
medicare-eligible beneficiaries in the calculation of an area's
Medicare+Choice capitation payment. Such report shall include
on a county-by-county basis--
(1) the actual or estimated cost of such services
to medicare-eligible beneficiaries;
(2) the change in Medicare+Choice capitation
payment rates if such costs are included in the
calculation of payment rates;
(3) one or more proposals for the implementation of
payment adjustments to Medicare+Choice plans in
counties where the payment rate has been affected due
to the failure to calculate the cost of such services
to medicare-eligible beneficiaries; and
(4) a system to ensure that when a Medicare+Choice
enrollee receives covered services through a facility
of the Department of Veterans Affairs or the Department
of Defense there is an appropriate payment recovery to
the medicare program under title XVIII of the Social
Security Act.
Subtitle B--Other Medicare+Choice Reforms
SEC. 611. PAYMENT OF ADDITIONAL AMOUNTS FOR NEW BENEFITS COVERED DURING
A CONTRACT TERM.
(a) In General.--Section 1853(c)(7) (42 U.S.C. 1395w-
23(c)(7)) is amended to read as follows:
``(7) Adjustment for national coverage
determinations and legislative changes in benefits.--If
the Secretary makes a determination with respect to
coverage under this title or there is a change in
benefits required to be provided under this part that
the Secretary projects will result in a significant
increase in the costs to Medicare+Choice of providing
benefits under contracts under this part (for periods
after any period described in section 1852(a)(5)), the
Secretary shall adjust appropriately the payments to
such organizations under this part. Such projection and
adjustment shall be based on an analysis by the Chief
Actuary of the Health Care Financing Administration of
the actuarial costs associated with the new
benefits.''.
(b) Conforming Amendment.--Section 1852(a)(5) (42 U.S.C.
1395w-22(a)(5)) is amended--
(1) in the heading, by inserting ``and legislative
changes in benefits'' after ``National coverage
determinations'';
(2) by inserting ``or legislative change in
benefits required to be provided under this part''
after ``national coverage determination'';
(3) in subparagraph (A), by inserting ``or
legislative change in benefits'' after ``such
determination'';
(4) in subparagraph (B), by inserting ``or
legislative change'' after ``if such coverage
determination''; and
(5) by adding at the end the following:
``The projection under the previous sentence shall be
based on an analysis by the Chief Actuary of the Health
Care Financing Administration of the actuarial costs
associated with the coverage determination or
legislative change in benefits.''.
(c) Effective Date.--The amendments made by this section
are effective on the date of the enactment of this Act and
shall apply to national coverage determinations and legislative
changes in benefits occurring on or after such date.
SEC. 612. RESTRICTION ON IMPLEMENTATION OF SIGNIFICANT NEW REGULATORY
REQUIREMENTS MIDYEAR.
(a) In General.--Section 1856(b) (42 U.S.C. 1395w-26(b)) is
amended by adding at the end the following new paragraph:
``(4) Prohibition of midyear implementation of
significant new regulatory requirements.--The Secretary
may not implement, other than at the beginning of a
calendar year, regulations under this section that
impose new, significant regulatory requirements on a
Medicare+Choice organization or plan.''.
(b) Effective Date.--The amendment made by subsection (a)
takes effect on the date of the enactment of this Act.
SEC. 613. TIMELY APPROVAL OF MARKETING MATERIAL THAT FOLLOWS MODEL
MARKETING LANGUAGE.
(a) In General.--Section 1851(h) (42 U.S.C. 1395w-21(h)) is
amended--
(1) in paragraph (1)(A), by inserting ``(or 10 days
in the case described in paragraph (5))'' after ``45
days''; and
(2) by adding at the end the following new
paragraph:
``(5) Special treatment of marketing material
following model marketing language.--In the case of
marketing material of an organization that uses,
without modification, proposed model language specified
by the Secretary, the period specified in paragraph
(1)(A) shall be reduced from 45 days to 10 days.''.
(b) Effective Date.--The amendments made by subsection (a)
shall apply to marketing material submitted on or after January
1, 2001.
SEC. 614. AVOIDING DUPLICATIVE REGULATION.
(a) In General.--Section 1856(b)(3)(B) (42 U.S.C. 1395w-
26(b)(3)(B)) is amended--
(1) in clause (i), by inserting ``(including cost-
sharing requirements)'' after ``Benefit requirements'';
and
(2) by adding at the end the following new clause:
``(iv) Requirements relating to
marketing materials and summaries and
schedules of benefits regarding a
Medicare+Choice plan.''.
(b) Effective Date.--The amendments made by subsection (a)
take effect on the date of the enactment of this Act.
SEC. 615. ELECTION OF UNIFORM LOCAL COVERAGE POLICY FOR MEDICARE+CHOICE
PLAN COVERING MULTIPLE LOCALITIES.
Section 1852(a)(2) (42 U.S.C. 1395w-22(a)(2)) is amended by
adding at the end the following new subparagraph:
``(C) Election of uniform coverage
policy.--In the case of a Medicare+Choice
organization that offers a Medicare+Choice plan
in an area in which more than one local
coverage policy is applied with respect to
different parts of the area, the organization
may elect to have the local coverage policy for
the part of the area that is most beneficial to
Medicare+Choice enrollees (as identified by the
Secretary) apply with respect to all
Medicare+Choice enrollees enrolled in the
plan.''.
SEC. 616. ELIMINATING HEALTH DISPARITIES IN MEDICARE+CHOICE PROGRAM.
(a) Quality Assurance Program Focus on Racial and Ethnic
Minorities.--Subparagraphs (A) and (B) of section 1852(e)(2)
(42 U.S.C. 1395w-22(e)(2)) are each amended by adding at the
end the following:
``Such program shall include a separate focus
(with respect to all the elements described in
this subparagraph) on racial and ethnic
minorities.''.
(b) Report.--Section 1852(e) (42 U.S.C. 1395w-22(e)) is
amended by adding at the end the following new paragraph:
``(5) Report to congress.--
``(A) In general.--Not later than 2 years
after the date of the enactment of this
paragraph, and biennially thereafter, the
Secretary shall submit to Congress a report
regarding how quality assurance programs
conducted under this subsection focus on racial
and ethnic minorities.
``(B) Contents of report.--Each such report
shall include the following:
``(i) A description of the means by
which such programs focus on such
racial and ethnic minorities.
``(ii) An evaluation of the impact
of such programs on eliminating health
disparities and on improving health
outcomes, continuity and coordination
of care, management of chronic
conditions, and consumer satisfaction.
``(iii) Recommendations on ways to
reduce clinical outcome disparities
among racial and ethnic minorities.''.
SEC. 617. MEDICARE+CHOICE PROGRAM COMPATIBILITY WITH EMPLOYER OR UNION
GROUP HEALTH PLANS.
(a) In General.--Section 1857 (42 U.S.C. 1395w-27) is
amended by adding at the end the following new subsection:
``(i) Medicare+Choice Program Compatibility With Employer
or Union Group Health Plans.--To facilitate the offering of
Medicare+Choice plans under contracts between Medicare+Choice
organizations and employers, labor organizations, or the
trustees of a fund established by 1 or more employers or labor
organizations (or combination thereof) to furnish benefits to
the entity's employees, former employees (or combination
thereof) or members or former members (or combination thereof)
of the labor organizations, the Secretary may waive or modify
requirements that hinder the design of, the offering of, or the
enrollment in such Medicare+Choice plans.''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply with respect to years beginning with 2001.
SEC. 618. SPECIAL MEDIGAP ENROLLMENT ANTIDISCRIMINATION PROVISION FOR
CERTAIN BENEFICIARIES.
(a) Disenrollment Window in Accordance With Beneficiary's
Circumstance.--Section 1882(s)(3) (42 U.S.C. 1395ss(s)(3)) is
amended--
(1) in subparagraph (A), in the matter following
clause (iii), by striking ``, subject to subparagraph
(E), seeks to enroll under the policy not later than 63
days after the date of the termination of enrollment
described in such subparagraph'' and inserting ``seeks
to enroll under the policy during the period specified
in subparagraph (E)''; and
(2) by striking subparagraph (E) and inserting the
following new subparagraph:
``(E) For purposes of subparagraph (A), the time period
specified in this subparagraph is--
``(i) in the case of an individual described in
subparagraph (B)(i), the period beginning on the date
the individual receives a notice of termination or
cessation of all supplemental health benefits (or, if
no such notice is received, notice that a claim has
been denied because of such a termination or cessation)
and ending on the date that is 63 days after the
applicable notice;
``(ii) in the case of an individual described in
clause (ii), (iii), (v), or (vi) of subparagraph (B)
whose enrollment is terminated involuntarily, the
period beginning on the date that the individual
receives a notice of termination and ending on the date
that is 63 days after the date the applicable coverage
is terminated;
``(iii) in the case of an individual described in
subparagraph (B)(iv)(I), the period beginning on the
earlier of (I) the date that the individual receives a
notice of termination, a notice of the issuer's
bankruptcy or insolvency, or other such similar notice,
if any, and (II) the date that the applicable coverage
is terminated, and ending on the date that is 63 days
after the date the coverage is terminated;
``(iv) in the case of an individual described in
clause (ii), (iii), (iv)(II), (iv)(III), (v), or (vi)
of subparagraph (B) who disenrolls voluntarily, the
period beginning on the date that is 60 days before the
effective date of the disenrollment and ending on the
date that is 63 days after such effective date; and
``(v) in the case of an individual described in
subparagraph (B) but not described in the preceding
provisions of this subparagraph, the period beginning
on the effective date of the disenrollment and ending
on the date that is 63 days after such effective
date.''.
(b) Extended Medigap Access for Interrupted Trial
Periods.--Section 1882(s)(3) (42 U.S.C. 1395ss(s)(3)), as
amended by subsection (a), is further amended by adding at the
end the following new subparagraph:
``(F)(i) Subject to clause (ii), for purposes of this
paragraph--
``(I) in the case of an individual described in
subparagraph (B)(v) (or deemed to be so described,
pursuant to this subparagraph) whose enrollment with an
organization or provider described in subclause (II) of
such subparagraph is involuntarily terminated within
the first 12 months of such enrollment, and who,
without an intervening enrollment, enrolls with another
such organization or provider, such subsequent
enrollment shall be deemed to be an initial enrollment
described in such subparagraph; and
``(II) in the case of an individual described in
clause (vi) of subparagraph (B) (or deemed to be so
described, pursuant to this subparagraph) whose
enrollment with a plan or in a program described in
such clause is involuntarily terminated within the
first 12 months of such enrollment, and who, without an
intervening enrollment, enrolls in another such plan or
program, such subsequent enrollment shall be deemed to
be an initial enrollment described in such clause.
``(ii) For purposes of clauses (v) and (vi) of subparagraph
(B), no enrollment of an individual with an organization or
provider described in clause (v)(II), or with a plan or in a
program described in clause (vi), may be deemed to be an
initial enrollment under this clause after the 2-year period
beginning on the date on which the individual first enrolled
with such an organization, provider, plan, or program.''.
SEC. 619. RESTORING EFFECTIVE DATE OF ELECTIONS AND CHANGES OF
ELECTIONS OF MEDICARE+CHOICE PLANS.
(a) Open Enrollment.--Section 1851(f)(2) (42 U.S.C. 1395w-
21(f)(2)) is amended by striking ``, except that if such
election or change is made after the 10th day of any calendar
month, then the election or change shall not take effect until
the first day of the second calendar month following the date
on which the election or change is made''.
(b) Effective Date.--The amendment made by this section
shall apply to elections and changes of coverage made on or
after June 1, 2001.
SEC. 620. PERMITTING ESRD BENEFICIARIES TO ENROLL IN ANOTHER
MEDICARE+CHOICE PLAN IF THE PLAN IN WHICH THEY ARE
ENROLLED IS TERMINATED.
(a) In General.--Section 1851(a)(3)(B) (42 U.S.C. 1395w-
21(a)(3)(B)) is amended by striking ``except that'' and all
that follows and inserting the following: ``except that--
``(i) an individual who develops
end-stage renal disease while enrolled
in a Medicare+Choice plan may continue
to be enrolled in that plan; and
``(ii) in the case of such an
individual who is enrolled in a
Medicare+Choice plan under clause (i)
(or subsequently under this clause), if
the enrollment is discontinued under
circumstances described in section
1851(e)(4)(A), then the individual will
be treated as a `Medicare+Choice
eligible individual' for purposes of
electing to continue enrollment in
another Medicare+Choice plan.''.
(b) Effective Date.--
(1) In general.--The amendment made by subsection
(a) shall apply to terminations and discontinuations
occurring on or after the date of the enactment of this
Act.
(2) Application to prior plan terminations.--Clause
(ii) of section 1851(a)(3)(B) of the Social Security
Act (as inserted by subsection (a)) shall also apply to
individuals whose enrollment in a Medicare+Choice plan
was terminated or discontinued after December 31, 1998,
and before the date of the enactment of this Act. In
applying this paragraph, such an individual shall be
treated, for purposes of part C of title XVIII of the
Social Security Act, as having discontinued enrollment
in such a plan as of the date of the enactment of this
Act.
SEC. 621. PROVIDING CHOICE FOR SKILLED NURSING FACILITY SERVICES UNDER
THE MEDICARE+CHOICE PROGRAM.
(a) In General.--Section 1852 (42 U.S.C. 1395w-22) is
amended by adding at the end the following new subsection:
``(l) Return to Home Skilled Nursing Facilities for Covered
Post-Hospital Extended Care Services.--
``(1) Ensuring return to home snf.--
``(A) In general.--In providing coverage of
post-hospital extended care services, a
Medicare+Choice plan shall provide for such
coverage through a home skilled nursing
facility if the following conditions are met:
``(i) Enrollee election.--The
enrollee elects to receive such
coverage through such facility.
``(ii) SNF agreement.--The facility
has a contract with the Medicare+Choice
organization for the provision of such
services, or the facility agrees to
accept substantially similar payment
under the same terms and conditions
that apply to similarly situated
skilled nursing facilities that are
under contract with the Medicare+Choice
organization for the provision of such
services and through which the enrollee
would otherwise receive such services.
``(B) Manner of payment to home snf.--The
organization shall provide payment to the home
skilled nursing facility consistent with the
contract or the agreement described in
subparagraph (A)(ii), as the case may be.
``(2) No less favorable coverage.--The coverage
provided under paragraph (1) (including scope of
services, cost-sharing, and other criteria of coverage)
shall be no less favorable to the enrollee than the
coverage that would be provided to the enrollee with
respect to a skilled nursing facility the post-hospital
extended care services of which are otherwise covered
under the Medicare+Choice plan.
``(3) Rule of construction.--Nothing in this
subsection shall be construed to do the following:
``(A) To require coverage through a skilled
nursing facility that is not otherwise
qualified to provide benefits under part A for
medicare beneficiaries not enrolled in a
Medicare+Choice plan.
``(B) To prevent a skilled nursing facility
from refusing to accept, or imposing conditions
upon the acceptance of, an enrollee for the
receipt of post-hospital extended care
services.
``(4) Definitions.--In this subsection:
``(A) Home skilled nursing facility.--The
term `home skilled nursing facility' means,
with respect to an enrollee who is entitled to
receive post-hospital extended care services
under a Medicare+Choice plan, any of the
following skilled nursing facilities:
``(i) SNF residence at time of
admission.--The skilled nursing
facility in which the enrollee resided
at the time of admission to the
hospital preceding the receipt of such
post-hospital extended care services.
``(ii) SNF in continuing care
retirement community.--A skilled
nursing facility that is providing such
services through a continuing care
retirement community (as defined in
subparagraph (B)) which provided
residence to the enrollee at the time
of such admission.
``(iii) SNF residence of spouse at
time of discharge.--The skilled nursing
facility in which the spouse of the
enrollee is residing at the time of
discharge from such hospital.
``(B) Continuing care retirement
community.--The term `continuing care
retirement community' means, with respect to an
enrollee in a Medicare+Choice plan, an
arrangement under which housing and health-
related services are provided (or arranged)
through an organization for the enrollee under
an agreement that is effective for the life of
the enrollee or for a specified period.''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply with respect to contracts entered into or renewed
on or after the date of the enactment of this Act.
(c) MedPAC Study.--
(1) Study.--The Medicare Payment Advisory
Commission shall conduct a study analyzing the effects
of the amendment made by subsection (a) on
Medicare+Choice organizations. In conducting such
study, the Commission shall examine the effects (if
any) such amendment has had--
(A) on the scope of additional benefits
provided under the Medicare+Choice program;
(B) on the administrative and other costs
incurred by Medicare+Choice organizations; and
(C) on the contractual relationships
between such organizations and skilled nursing
facilities.
(2) Report.--Not later than 2 years after the date
of the enactment of this Act, the Commission shall
submit to Congress a report on the study conducted
under paragraph (1).
SEC. 622. PROVIDING FOR ACCOUNTABILITY OF MEDICARE+CHOICE PLANS.
(a) Mandatory Review of ACR Submissions by the Chief
Actuary of the Health Care Financing Administration.--Section
1854(a)(5)(A) (42 U.S.C. 1395w-24(a)(5)(A)) is amended--
(1) by striking ``value'' and inserting ``values'';
and
(2) by adding at the end the following: ``The Chief
Actuary of the Health Care Financing Administration
shall review the actuarial assumptions and data used by
the Medicare+Choice organization with respect to such
rates, amounts, and values so submitted to determine
the appropriateness of such assumptions and data.''.
(b) Effective Date.--The amendments made by subsection (a)
shall apply to submissions made on or after May 1, 2001.
SEC. 623. INCREASED CIVIL MONEY PENALTY FOR MEDICARE+CHOICE
ORGANIZATIONS THAT TERMINATE CONTRACTS MID-YEAR.
(a) In General.--Section 1857(g)(3) (42 U.S.C. 1395w-
27(g)(3)) is amended by adding at the end the following new
subparagraph:
``(D) Civil monetary penalties of not more
than $100,000, or such higher amount as the
Secretary may establish by regulation, where
the finding under subsection (c)(2)(A) is based
on the organization's termination of its
contract under this section other than at a
time and in a manner provided for under
subsection (a).''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to terminations occurring after the date of the
enactment of this Act.
Subtitle C--Other Managed Care Reforms
SEC. 631. 1-YEAR EXTENSION OF SOCIAL HEALTH MAINTENANCE ORGANIZATION
(SHMO) DEMONSTRATION PROJECT.
Section 4018(b)(1) of the Omnibus Budget Reconciliation Act
of 1987, as amended by section 531(a)(1) of BBRA (113 Stat.
1501A-388), is amended by striking ``18 months'' and inserting
``30 months''.
SEC. 632. REVISED TERMS AND CONDITIONS FOR EXTENSION OF MEDICARE
COMMUNITY NURSING ORGANIZATION (CNO) DEMONSTRATION
PROJECT.
(a) In General.--Section 532 of BBRA (113 Stat. 1501A-388)
is amended--
(1) in subsection (a), by striking the second
sentence; and
(2) by striking subsection (b) and inserting the
following new subsection:
``(b) Terms and Conditions.--
``(1) January through september 2000.--For the 9-
month period beginning with January 2000, any such
demonstration project shall be conducted under the same
terms and conditions as applied to such demonstration
during 1999.
``(2) October 2000 through december 2001.--For the
15-month period beginning with October 2000, any such
demonstration project shall be conducted under the same
terms and conditions as applied to such demonstration
during 1999, except that the following modifications
shall apply:
``(A) Basic capitation rate.--The basic
capitation rate paid for services covered under
the project (other than case management
services) per enrollee per month and furnished
during--
``(i) the period beginning with
October 1, 2000, and ending with
December 31, 2000, shall be determined
by actuarially adjusting the actual
capitation rate paid for such services
in 1999 for inflation, utilization, and
other changes to the CNO service
package, and by reducing such adjusted
capitation rate by 10 percent in the
case of the demonstration sites located
in Arizona, Minnesota, and Illinois,
and 15 percent for the demonstration
site located in New York; and
``(ii) 2001 shall be determined by
actuarially adjusting the capitation
rate determined under clause (i) for
inflation, utilization, and other
changes to the CNO service package.
``(B) Targeted case management fee.--
Effective October 1, 2000--
``(i) the case management fee per
enrollee per month for--
``(I) the period described
in subparagraph (A)(i) shall be
determined by actuarially
adjusting the case management
fee for 1999 for inflation; and
``(II) 2001 shall be
determined by actuarially
adjusting the amount determined
under subclause (I) for
inflation; and
``(ii) such case management fee
shall be paid only for enrollees who
are classified as moderately frail or
frail pursuant to criteria established
by the Secretary.
``(C) Greater uniformity in clinical
features among sites.--Each project shall
implement for each site--
``(i) protocols for periodic
telephonic contact with enrollees based
on--
``(I) the results of such
standardized written health
assessment; and
``(II) the application of
appropriate care planning
approaches;
``(ii) disease management programs
for targeted diseases (such as
congestive heart failure, arthritis,
diabetes, and hypertension) that are
highly prevalent in the enrolled
populations;
``(iii) systems and protocols to
track enrollees through
hospitalizations, including pre-
admission planning, concurrent
management during inpatient hospital
stays, and post-discharge assessment,
planning, and follow-up; and
``(iv) standardized patient
educational materials for specified
diseases and health conditions.
``(D) Quality improvement.--Each project
shall implement at each site once during the
15-month period--
``(i) enrollee satisfaction
surveys; and
``(ii) reporting on specified
quality indicators for the enrolled
population.
``(c) Evaluation.--
``(1) Preliminary report.--Not later than July 1,
2001, the Secretary of Health and Human Services shall
submit to the Committees on Ways and Means and Commerce
of the House of Representatives and the Committee on
Finance of the Senate a preliminary report that--
``(A) evaluates such demonstration projects
for the period beginning July 1, 1997, and
ending December 31, 1999, on a site-specific
basis with respect to the impact on per
beneficiary spending, specific health
utilization measures, and enrollee
satisfaction; and
``(B) includes a similar evaluation of such
projects for the portion of the extension
period that occurs after September 30, 2000.
``(2) Final report.--The Secretary shall submit a
final report to such Committees on such demonstration
projects not later than July 1, 2002. Such report shall
include the same elements as the preliminary report
required by paragraph (1), but for the period after
December 31, 1999.
``(3) Methodology for spending comparisons.--Any
evaluation of the impact of the demonstration projects
on per beneficiary spending included in such reports
shall include a comparison of--
``(A) data for all individuals who--
``(i) were enrolled in such
demonstration projects as of the first
day of the period under evaluation; and
``(ii) were enrolled for a minimum
of 6 months thereafter; with
``(B) data for a matched sample of
individuals who are enrolled under part B of
title XVIII of the Social Security Act and are
not enrolled in such a project, or in a
Medicare+Choice plan under part C of such
title, a plan offered by an eligible
organization under section 1876 of such Act, or
a health care prepayment plan under section
1833(a)(1)(A) of such Act.''.
(b) Effective Date.--The amendments made by subsection (a)
shall be effective as if included in the enactment of section
532 of BBRA (113 Stat. 1501A-388).
SEC. 633. EXTENSION OF MEDICARE MUNICIPAL HEALTH SERVICES DEMONSTRATION
PROJECTS.
Section 9215(a) of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (42 U.S.C. 1395b-1 note), as amended
by section 6135 of the Omnibus Budget Reconciliation Act of
1989, section 13557 of the Omnibus Budget Reconciliation Act of
1993, section 4017 of BBA, and section 534 of BBRA (113 Stat.
1501A-390), is amended by striking ``December 31, 2002'' and
inserting ``December 31, 2004''.
SEC. 634. SERVICE AREA EXPANSION FOR MEDICARE COST CONTRACTS DURING
TRANSITION PERIOD.
Section 1876(h)(5) (42 U.S.C. 1395mm(h)(5)) is amended--
(1) by redesignating subparagraph (B) as
subparagraph (C); and
(2) by inserting after subparagraph (A), the
following new subparagraph:
``(B) Subject to subparagraph (C), the Secretary shall
approve an application for a modification to a reasonable cost
contract under this section in order to expand the service area
of such contract if--
``(i) such application is submitted to the
Secretary on or before September 1, 2003; and
``(ii) the Secretary determines that the
organization with the contract continues to meet the
requirements applicable to such organizations and
contracts under this section.''.
TITLE VII--MEDICAID
SEC. 701. DSH PAYMENTS.
(a) Modifications to DSH Allotments.--
(1) Increased allotments for fiscal years 2001 and
2002.--
(A) In general.--Section 1923(f) (42 U.S.C.
1396r-4(f)) is amended--
(i) in paragraph (2), by striking
``The DSH allotment'' and inserting
``Subject to paragraph (4), the DSH
allotment'';
(ii) by redesignating paragraph (4)
as paragraph (6); and
(iii) by inserting after paragraph
(3) the following new paragraph:
``(4) Special rule for fiscal years 2001 and
2002.--
``(A) In general.--Notwithstanding
paragraph (2), the DSH allotment for any State
for--
``(i) fiscal year 2001, shall be
the DSH allotment determined under
paragraph (2) for fiscal year 2000
increased, subject to subparagraph (B)
and paragraph (5), by the percentage
change in the consumer price index for
all urban consumers (all items; U.S.
city average) for fiscal year 2000; and
``(ii) fiscal year 2002, shall be
the DSH allotment determined under
clause (i) increased, subject to
subparagraph (B) and paragraph (5), by
the percentage change in the consumer
price index for all urban consumers
(all items; U.S. city average) for
fiscal year 2001.
``(B) Limitation.--Subparagraph (B) of
paragraph (3) shall apply to subparagraph (A)
of this paragraph in the same manner as that
subparagraph (B) applies to paragraph (3)(A).
``(C) No application to allotments after
fiscal year 2002.--The DSH allotment for any
State for fiscal year 2003 or any succeeding
fiscal year shall be determined under paragraph
(3) without regard to the DSH allotments
determined under subparagraph (A) of this
paragraph.''.
(2) Special rule for medicaid dsh allotment for
extremely low dsh states.--
(A) In general.--Section 1923(f) (42 U.S.C.
1396r-4(f)), as amended by paragraph (1), is
amended by inserting after paragraph (4) the
following new paragraph:
``(5) Special rule for extremely low dsh states.--
In the case of a State in which the total expenditures
under the State plan (including Federal and State
shares) for disproportionate share hospital adjustments
under this section for fiscal year 1999, as reported to
the Administrator of the Health Care Financing
Administration as of August 31, 2000, is greater than 0
but less than 1 percent of the State's total amount of
expenditures under the State plan for medical
assistance during the fiscal year, the DSH allotment
for fiscal year 2001 shall be increased to 1 percent of
the State's total amount of expenditures under such
plan for such assistance during such fiscal year. In
subsequent fiscal years, such increased allotment is
subject to an increase for inflation as provided in
paragraph (3)(A).''.
(B) Conforming amendment.--Section
1923(f)(3)(A) (42 U.S.C. 1396r-4(f)(3)(A)) is
amended by inserting ``and paragraph (5)''
after ``subparagraph (B)''.
(3) Effective date.--The amendments made by
paragraphs (1) and (2) take effect on the date the
final regulation required under section 705(a)
(relating to the application of an aggregate upper
payment limit test for State medicaid spending for
inpatient hospital services, outpatient hospital
services, nursing facility services, intermediate care
facility services for the mentally retarded, and clinic
services provided by government facilities that are not
State-owned or operated facilities) is published in the
Federal Register.
(b) Assuring Identification of Medicaid Managed Care
Patients.--
(1) In general.--Section 1932 (42 U.S.C. 1396u-2)
is amended by adding at the end the following new
subsection:
``(g) Identification of Patients for Purposes of Making DSH
Payments.--Each contract with a managed care entity under
section 1903(m) or under section 1905(t)(3) shall require the
entity either--
``(1) to report to the State information necessary
to determine the hospital services provided under the
contract (and the identity of hospitals providing such
services) for purposes of applying sections
1886(d)(5)(F) and 1923; or
``(2) to include a sponsorship code in the
identification card issued to individuals covered under
this title in order that a hospital may identify a
patient as being entitled to benefits under this
title.''.
(2) Clarification of counting managed care medicaid
patients.--Section 1923 (42 U.S.C. 1396r-4) is
amended--
(A) in subsection (a)(2)(D), by inserting
after ``the proportion of low-income and
medicaid patients'' the following: ``(including
such patients who receive benefits through a
managed care entity)'';
(B) in subsection (b)(2), by inserting
after ``a State plan approved under this title
in a period'' the following: ``(regardless of
whether such patients receive medical
assistance on a fee-for-service basis or
through a managed care entity)''; and
(C) in subsection (b)(3)(A)(i), by
inserting after ``under a State plan under this
title'' the following: ``(regardless of whether
the services were furnished on a fee-for-
service basis or through a managed care
entity)''.
(3) Effective dates.--
(A) The amendment made by paragraph (1)
shall apply to contracts as of January 1, 2001.
(B) The amendments made by paragraph (2)
shall apply to payments made on or after
January 1, 2001.
(c) Application of Medicaid DSH Transition Rule to Public
Hospitals in All States.--
(1) In general.--During the period described in
paragraph (3), with respect to a State, section 4721(e)
of the Balanced Budget Act of 1997 (Public Law 105-33;
111 Stat. 514), as amended by section 607 of BBRA (113
Stat. 1501A-396), shall be applied as though--
(A) ``September 30, 2002'' were substituted
for ``July 1, 1997'' each place it appears;
(B) ``hospitals owned or operated by a
State (as defined for purposes of title XIX of
such Act), or by an instrumentality or a unit
of government within a State (as so defined)''
were substituted for ``the State of
California'';
(C) paragraph (3) were redesignated as
paragraph (4);
(D) ``and'' were omitted from the end of
paragraph (2); and
(E) the following new paragraph were
inserted after paragraph (2):
``(3) `(as defined in subparagraph (B) but without
regard to clause (ii) of that subparagraph and subject
to subsection (d))' were substituted for `(as defined
in subparagraph (B))' in subparagraph (A) of such
section; and''.
(2) Special rule.--With respect to California,
section 4721(e) of the Balanced Budget Act of 1997
(Public Law 105-33; 111 Stat. 514), as so amended,
shall be applied without regard to paragraph (1).
(3) Period described.--The period described in this
paragraph is the period that begins, with respect to a
State, on the first day of the first State fiscal year
that begins after September 30, 2002, and ends on the
last day of the succeeding State fiscal year.
(4) Application to waivers.--With respect to a
State operating under a waiver of the requirements of
title XIX of the Social Security Act (42 U.S.C. 1396 et
seq.) under section 1115 of such Act (42 U.S.C. 1315),
the amount by which any payment adjustment made by the
State under title XIX of such Act (42 U.S.C. 1396 et
seq.), after the application of section 4721(e) of the
Balanced Budget Act of 1997 under paragraph (1) to such
State, exceeds the costs of furnishing hospital
services provided by hospitals described in such
section shall be fully reflected as an increase in the
baseline expenditure limit for such waiver.
(d) Assistance for Certain Public Hospitals.--
(1) In general.--Beginning with fiscal year 2002,
notwithstanding section 1923(f) of the Social Security
Act (42 U.S.C. 1396r-4(f)) and subject to paragraph
(3), with respect to a State, payment adjustments made
under title XIX of the Social Security Act (42 U.S.C.
1396 et seq.) to a hospital described in paragraph (2)
shall be made without regard to the DSH allotment
limitation for the State determined under section
1923(f) of that Act (42 U.S.C. 1396r-4(f)).
(2) Hospital described.--A hospital is described in
this paragraph if the hospital--
(A) is owned or operated by a State (as
defined for purposes of title XIX of the Social
Security Act), or by an instrumentality or a
unit of government within a State (as so
defined);
(B) as of October 1, 2000--
(i) is in existence and operating
as a hospital described in subparagraph
(A); and
(ii) is not receiving
disproportionate share hospital
payments from the State in which it is
located under title XIX of such Act;
and
(C) has a low-income utilization rate (as
defined in section 1923(b)(3) of the Social
Security Act (42 U.S.C. 1396r-4(b)(3))) in
excess of 65 percent.
(3) Limitation on expenditures.--
(A) In general.--With respect to any fiscal
year, the aggregate amount of Federal financial
participation that may be provided for payment
adjustments described in paragraph (1) for that
fiscal year for all States may not exceed the
amount described in subparagraph (B) for the
fiscal year.
(B) Amount described.--The amount described
in this subparagraph for a fiscal year is as
follows:
(i) For fiscal year 2002,
$15,000,000.
(ii) For fiscal year 2003,
$176,000,000.
(iii) For fiscal year 2004,
$269,000,000.
(iv) For fiscal year 2005,
$330,000,000.
(v) For fiscal year 2006 and each
fiscal year thereafter, $375,000,000.
(e) DSH Payment Accountability Standards.--Not later than
September 30, 2002, the Secretary of Health and Human Services
shall implement accountability standards to ensure that Federal
funds provided with respect to disproportionate share hospital
adjustments made under section 1923 of the Social Security Act
(42 U.S.C. 1396r-4) are used to reimburse States and hospitals
eligible for such payment adjustments for providing
uncompensated health care to low-income patients and are
otherwise made in accordance with the requirements of section
1923 of that Act.
SEC. 702. NEW PROSPECTIVE PAYMENT SYSTEM FOR FEDERALLY-QUALIFIED HEALTH
CENTERS AND RURAL HEALTH CLINICS.
(a) In General.--Section 1902(a) (42 U.S.C. 1396a(a)) is
amended--
(1) in paragraph (13)--
(A) in subparagraph (A), by adding ``and''
at the end;
(B) in subparagraph (B), by striking
``and'' at the end; and
(C) by striking subparagraph (C); and
(2) by inserting after paragraph (14) the following
new paragraph:
``(15) provide for payment for services described
in clause (B) or (C) of section 1905(a)(2) under the
plan in accordance with subsection (aa);''.
(b) New Prospective Payment System.--Section 1902 (42
U.S.C. 1396a) is amended by adding at the end the following:
``(aa) Payment for Services Provided by Federally-Qualified
Health Centers and Rural Health Clinics.--
``(1) In general.--Beginning with fiscal year 2001
with respect to services furnished on or after January
1, 2001, and each succeeding fiscal year, the State
plan shall provide for payment for services described
in section 1905(a)(2)(C) furnished by a Federally-
qualified health center and services described in
section 1905(a)(2)(B) furnished by a rural health
clinic in accordance with the provisions of this
subsection.
``(2) Fiscal year 2001.--Subject to paragraph (4),
for services furnished on and after January 1, 2001,
during fiscal year 2001, the State plan shall provide
for payment for such services in an amount (calculated
on a per visit basis) that is equal to 100 percent of
the average of the costs of the center or clinic of
furnishing such services during fiscal years 1999 and
2000 which are reasonable and related to the cost of
furnishing such services, or based on such other tests
of reasonableness as the Secretary prescribes in
regulations under section 1833(a)(3), or, in the case
of services to which such regulations do not apply, the
same methodology used under section 1833(a)(3),
adjusted to take into account any increase or decrease
in the scope of such services furnished by the center
or clinic during fiscal year 2001.
``(3) Fiscal year 2002 and succeeding fiscal
years.--Subject to paragraph (4), for services
furnished during fiscal year 2002 or a succeeding
fiscal year, the State plan shall provide for payment
for such services in an amount (calculated on a per
visit basis) that is equal to the amount calculated for
such services under this subsection for the preceding
fiscal year--
``(A) increased by the percentage increase
in the MEI (as defined in section 1842(i)(3))
applicable to primary care services (as defined
in section 1842(i)(4)) for that fiscal year;
and
``(B) adjusted to take into account any
increase or decrease in the scope of such
services furnished by the center or clinic
during that fiscal year.
``(4) Establishment of initial year payment amount
for new centers or clinics.--In any case in which an
entity first qualifies as a Federally-qualified health
center or rural health clinic after fiscal year 2000,
the State plan shall provide for payment for services
described in section 1905(a)(2)(C) furnished by the
center or services described in section 1905(a)(2)(B)
furnished by the clinic in the first fiscal year in
which the center or clinic so qualifies in an amount
(calculated on a per visit basis) that is equal to 100
percent of the costs of furnishing such services during
such fiscal year based on the rates established under
this subsection for the fiscal year for other such
centers or clinics located in the same or adjacent area
with a similar case load or, in the absence of such a
center or clinic, in accordance with the regulations
and methodology referred to in paragraph (2) or based
on such other tests of reasonableness as the Secretary
may specify. For each fiscal year following the fiscal
year in which the entity first qualifies as a
Federally-qualified health center or rural health
clinic, the State plan shall provide for the payment
amount to be calculated in accordance with paragraph
(3).
``(5) Administration in the case of managed care.--
``(A) In general.--In the case of services
furnished by a Federally-qualified health
center or rural health clinic pursuant to a
contract between the center or clinic and a
managed care entity (as defined in section
1932(a)(1)(B)), the State plan shall provide
for payment to the center or clinic by the
State of a supplemental payment equal to the
amount (if any) by which the amount determined
under paragraphs (2), (3), and (4) of this
subsection exceeds the amount of the payments
provided under the contract.
``(B) Payment schedule.--The supplemental
payment required under subparagraph (A) shall
be made pursuant to a payment schedule agreed
to by the State and the Federally-qualified
health center or rural health clinic, but in no
case less frequently than every 4 months.
``(6) Alternative payment methodologies.--
Notwithstanding any other provision of this section,
the State plan may provide for payment in any fiscal
year to a Federally-qualified health center for
services described in section 1905(a)(2)(C) or to a
rural health clinic for services described in section
1905(a)(2)(B) in an amount which is determined under an
alternative payment methodology that--
``(A) is agreed to by the State and the
center or clinic; and
``(B) results in payment to the center or
clinic of an amount which is at least equal to
the amount otherwise required to be paid to the
center or clinic under this section.''.
(c) Conforming Amendments.--
(1) Section 4712 of the BBA (Public Law 105-33; 111
Stat. 508) is amended by striking subsection (c).
(2) Section 1915(b) (42 U.S.C. 1396n(b)) is amended
by striking ``1902(a)(13)(C)'' and inserting
``1902(a)(15), 1902(aa),''.
(d) GAO Study of Future Rebasing.--The Comptroller General
of the United States shall provide for a study on the need for,
and how to, rebase or refine costs for making payment under the
medicaid program for services provided by Federally-qualified
health centers and rural health clinics (as provided under the
amendments made by this section). The Comptroller General shall
provide for submittal of a report on such study to Congress by
not later than 4 years after the date of the enactment of this
Act.
(e) Effective Date.--The amendments made by this section
take effect on January 1, 2001, and shall apply to services
furnished on or after such date.
SEC. 703. STREAMLINED APPROVAL OF CONTINUED STATE-WIDE SECTION 1115
MEDICAID WAIVERS.
(a) In General.--Section 1115 (42 U.S.C. 1315) is amended
by adding at the end the following new subsection:
``(f) An application by the chief executive officer of a
State for an extension of a waiver project the State is
operating under an extension under subsection (e) (in this
subsection referred to as the `waiver project') shall be
submitted and approved or disapproved in accordance with the
following:
``(1) The application for an extension of the
waiver project shall be submitted to the Secretary at
least 120 days prior to the expiration of the current
period of the waiver project.
``(2) Not later than 45 days after the date such
application is received by the Secretary, the Secretary
shall notify the State if the Secretary intends to
review the terms and conditions of the waiver project.
A failure to provide such notification shall be deemed
to be an approval of the application.
``(3) Not later than 45 days after the date a
notification is made in accordance with paragraph (2),
the Secretary shall inform the State of proposed
changes in the terms and conditions of the waiver
project. A failure to provide such information shall be
deemed to be an approval of the application.
``(4) During the 30-day period that begins on the
date information described in paragraph (3) is provided
to a State, the Secretary shall negotiate revised terms
and conditions of the waiver project with the State.
``(5)(A) Not later than 120 days after the date an
application for an extension of the waiver project is
submitted to the Secretary (or such later date agreed
to by the chief executive officer of the State), the
Secretary shall--
``(i) approve the application subject to
such modifications in the terms and
conditions--
``(I) as have been agreed to by the
Secretary and the State; or
``(II) in the absence of such
agreement, as are determined by the
Secretary to be reasonable, consistent
with the overall objectives of the
waiver project, and not in violation of
applicable law; or
``(ii) disapprove the application.
``(B) A failure by the Secretary to approve or
disapprove an application submitted under this
subsection in accordance with the requirements of
subparagraph (A) shall be deemed to be an approval of
the application subject to such modifications in the
terms and conditions as have been agreed to (if any) by
the Secretary and the State.
``(6) An approval of an application for an
extension of a waiver project under this subsection
shall be for a period not to exceed 3 years.
``(7) An extension of a waiver project under this
subsection shall be subject to the final reporting and
evaluation requirements of paragraphs (4) and (5) of
subsection (e) (taking into account the extension under
this subsection with respect to any timing requirements
imposed under those paragraphs).''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to requests for extensions of demonstration
projects pending or submitted on or after the date of the
enactment of this Act.
SEC. 704. MEDICAID COUNTY-ORGANIZED HEALTH SYSTEMS.
(a) In General.--Section 9517(c)(3)(C) of the Comprehensive
Omnibus Budget Reconciliation Act of 1985 is amended by
striking ``10 percent'' and inserting ``14 percent''.
(b) Effective Date.--The amendment made by subsection (a)
takes effect on the date of the enactment of this Act.
SEC. 705. DEADLINE FOR ISSUANCE OF FINAL REGULATION RELATING TO
MEDICAID UPPER PAYMENT LIMITS.
(a) In General.--Not later than December 31, 2000, the
Secretary of Health and Human Services (in this section
referred to as the ``Secretary''), notwithstanding any
requirement of the Administrative Procedures Act under chapter
5 of title 5, United States Code, or any other provision of
law, shall issue under sections 447.272, 447.304, and 447.321
of title 42, Code of Federal Regulations (and any other section
of part 447 of title 42, Code of Federal Regulations that the
Secretary determines is appropriate), a final regulation based
on the proposed rule announced on October 5, 2000, that--
(1) modifies the upper payment limit test applied
to State medicaid spending for inpatient hospital
services, outpatient hospital services, nursing
facility services, intermediate care facility services
for the mentally retarded, and clinic services by
applying an aggregate upper payment limit to payments
made to government facilities that are not State-owned
or operated facilities; and
(2) provides for a transition period in accordance
with subsection (b).
(b) Transition Period.--
(1) In general.--The final regulation required
under subsection (a) shall provide that, with respect
to a State described in paragraph (3), the State shall
be considered to be in compliance with the final
regulation required under subsection (a) so long as,
for each State fiscal year during the period described
in paragraph (4), the State reduces payments under a
State medicaid plan payment provision or methodology
described in paragraph (3) (including a payment
provision or methodology described in that paragraph
that was approved under a waiver of such plan), or
reduces the actual dollar payment levels described in
paragraph (3)(B), so that the amount of the payments
that would otherwise have been made under such
provision, methodology, or payment levels by the State
for any State fiscal year during such period is reduced
by 15 percent in the first such State fiscal year, and
by an additional 15 percent in each of the next 5 State
fiscal years.
(2) Requirement.--Notwithstanding paragraph (1),
the final regulation required under subsection (a)
shall provide that, for any period (or portion of a
period) that occurs on or after October 1, 2008,
medicaid payments made by a State described in
paragraph (3) shall comply with such final regulation.
(3) State described.--A State described in this
paragraph is a State with a State medicaid plan payment
provision or methodology (including a payment provision
or methodology approved under a waiver of such plan)
which--
(A) was approved, deemed to have been
approved, or was in effect on or before October
1, 1992 (including any subsequent amendments or
successor provisions or methodologies and
whether or not a State plan amendment was made
to carry out such provision or methodology
after such date) or under which claims for
Federal financial participation were filed and
paid on or before such date; and
(B) provides for payments that are in
excess of the upper payment limit test
established under the final regulation required
under subsection (a) (or which would be
noncompliant with such final regulation if the
actual dollar payment levels made under the
payment provision or methodology in the State
fiscal year which begins during 1999 were
continued).
(4) Period described.--The period described in this
paragraph is the period that begins on the first State
fiscal year that begins after September 30, 2002, and
ends on September 30, 2008.
SEC. 706. ALASKA FMAP.
Notwithstanding the first sentence of section 1905(b) of
the Social Security Act (42 U.S.C. 1396d(b)), only with respect
to each of fiscal years 2001 through 2005, for purposes of
titles XIX and XXI of the Social Security Act, the State
percentage used to determine the Federal medical assistance
percentage for Alaska shall be that percentage which bears the
same ratio to 45 percent as the square of the adjusted per
capita income of Alaska (determined by dividing the State's 3-
year average per capita income by 1.05) bears to the square of
the per capita income of the 50 States.
SEC. 707. 1-YEAR EXTENSION OF WELFARE-TO-WORK TRANSITION.
(a) In General.--Section 1925(f) (42 U.S.C. 1396r-6(f)) is
amended by striking ``2001'' and inserting ``2002''.
(b) Conforming Amendment.--Section 1902(e)(1)(B) (42 U.S.C.
1396a(e)(1)(B)) is amended by striking ``2001'' and inserting
``2002''.
SEC. 708. ADDITIONAL ENTITIES QUALIFIED TO DETERMINE MEDICAID
PRESUMPTIVE ELIGIBILITY FOR LOW-INCOME CHILDREN.
(a) In General.--Section 1920A(b)(3)(A)(i) (42 U.S.C.
1396r-1a(b)(3)(A)(i)) is amended--
(1) by striking ``or (II)'' and inserting ``,
(II)''; and
(2) by inserting ``eligibility of a child for
medical assistance under the State plan under this
title, or eligibility of a child for child health
assistance under the program funded under title XXI,
(III) is an elementary school or secondary school, as
such terms are defined in section 14101 of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 8801), an elementary or secondary school
operated or supported by the Bureau of Indian Affairs,
a State or tribal child support enforcement agency, an
organization that is providing emergency food and
shelter under a grant under the Stewart B. McKinney
Homeless Assistance Act, or a State or tribal office or
entity involved in enrollment in the program under this
title, under part A of title IV, under title XXI, or
that determines eligibility for any assistance or
benefits provided under any program of public or
assisted housing that receives Federal funds, including
the program under section 8 or any other section of the
United States Housing Act of 1937 (42 U.S.C. 1437 et
seq.) or under the Native American Housing Assistance
and Self-Determination Act of 1996 (25 U.S.C. 4101 et
seq.), or (IV) any other entity the State so deems, as
approved by the Secretary'' before the semicolon.
(b) Technical Amendments.--Section 1920A (42 U.S.C. 1396r-
1a) is amended--
(1) in subsection (b)(3)(A)(i), by striking ``42
U.S.C. 9821'' and inserting ``42 U.S.C. 9831'';
(2) in subsection (b)(3)(A)(ii), by striking
``paragraph (1)(A)'' and inserting ``paragraph (2)'';
and
(3) in subsection (c)(2), in the matter preceding
subparagraph (A), by striking ``subsection (b)(1)(A)''
and inserting ``subsection (b)(2)''.
SEC. 709. DEVELOPMENT OF UNIFORM QMB/SLMB APPLICATION FORM.
(a) In General.--Section 1905(p) (42 U.S.C. 1396d(p)) is
amended by adding at the end the following new paragraph:
``(5)(A) The Secretary shall develop and distribute to
States a simplified application form for use by individuals
(including both qualified medicare beneficiaries and specified
low-income medicare beneficiaries) in applying for medical
assistance for medicare cost-sharing under this title in the
States which elect to use such form. Such form shall be easily
readable by applicants and uniform nationally.
``(B) In developing such form, the Secretary shall consult
with beneficiary groups and the States.''.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect 1 year after the date of the enactment of
this Act, regardless of whether regulations have been
promulgated to carry out such amendment by such date. The
Secretary of Health and Human Services shall develop the
uniform application form under such amendment by not later than
9 months after the date of the enactment of this Act.
SEC. 710. TECHNICAL CORRECTIONS.
(a) In General.--Section 1903(f)(4) (42 U.S.C. 1396b(f)(4))
is amended--
(1) by inserting ``1902(a)(10)(A)(ii)(XVII),''
after ``1902(a)(10)(A)(ii)(XVI),''; and
(2) by inserting ``1902(a)(10)(A)(ii)(XVIII),''
after ``1902(a)(10)(A)(ii)(XVII),''.
(b) Effective Dates.--(1) The amendment made by subsection
(a)(1) shall be effective as if included in the enactment of
section 121 of the Foster Care Independence Act of 1999 (Public
Law 106-169).
(2) The amendment made by subsection (a)(2) shall be
effective as if included in the enactment of the Breast and
Cervical Cancer Prevention and Treatment Act of 2000 (Public
Law 106-354).
TITLE VIII--STATE CHILDREN'S HEALTH INSURANCE PROGRAM
SEC. 801. SPECIAL RULE FOR REDISTRIBUTION AND AVAILABILITY OF UNUSED
FISCAL YEAR 1998 AND 1999 SCHIP ALLOTMENTS.
(a) Change in Rules for Redistribution and Retention of
Unused SCHIP Allotments for Fiscal Years 1998 and 1999.--
Section 2104 (42 U.S.C. 1397dd) is amended by adding at the end
the following new subsection:
``(g) Rule for Redistribution and Extended Availability of
Fiscal Years 1998 and 1999 Allotments.--
``(1) Amount redistributed.--
``(A) In general.--In the case of a State
that expends all of its allotment under
subsection (b) or (c) for fiscal year 1998 by
the end of fiscal year 2000, or for fiscal year
1999 by the end of fiscal year 2001, the
Secretary shall redistribute to the State under
subsection (f) (from the fiscal year 1998 or
1999 allotments of other States, respectively,
as determined by the application of paragraphs
(2) and (3) with respect to the respective
fiscal year) the following amount:
``(i) State.--In the case of 1 of
the 50 States or the District of
Columbia, with respect to--
``(I) the fiscal year 1998
allotment, the amount by which
the State's expenditures under
this title in fiscal years
1998, 1999, and 2000 exceed the
State's allotment for fiscal
year 1998 under subsection (b);
or
``(II) the fiscal year 1999
allotment, the amount by which
the State's expenditures under
this title in fiscal years
1999, 2000, and 2001 exceed the
State's allotment for fiscal
year 1999 under subsection (b).
``(ii) Territory.--In the case of a
commonwealth or territory described in
subsection (c)(3), an amount that bears
the same ratio to 1.05 percent of the
total amount described in paragraph
(2)(B)(i)(I) as the ratio of the
commonwealth's or territory's fiscal
year 1998 or 1999 allotment under
subsection (c) (as the case may be)
bears to the total of all such
allotments for such fiscal year under
such subsection.
``(B) Expenditure rules.--An amount
redistributed to a State under this paragraph
with respect to fiscal year 1998 or 1999--
``(i) shall not be included in the
determination of the State's allotment
for any fiscal year under this section;
``(ii) notwithstanding subsection
(e), shall remain available for
expenditure by the State through the
end of fiscal year 2002; and
``(iii) shall be counted as being
expended with respect to a fiscal year
allotment in accordance with applicable
regulations of the Secretary.
``(2) Extension of availability of portion of
unexpended fiscal years 1998 and 1999 allotments.--
``(A) In general.--Notwithstanding
subsection (e):
``(i) Fiscal year 1998 allotment.--
Of the amounts allotted to a State
pursuant to this section for fiscal
year 1998 that were not expended by the
State by the end of fiscal year 2000,
the amount specified in subparagraph
(B) for fiscal year 1998 for such State
shall remain available for expenditure
by the State through the end of fiscal
year 2002.
``(ii) Fiscal year 1999
allotment.--Of the amounts allotted to
a State pursuant to this subsection for
fiscal year 1999 that were not expended
by the State by the end of fiscal year
2001, the amount specified in
subparagraph (B) for fiscal year 1999
for such State shall remain available
for expenditure by the State through
the end of fiscal year 2002.
``(B) Amount remaining available for
expenditure.--The amount specified in this
subparagraph for a State for a fiscal year is
equal to--
``(i) the amount by which (I) the
total amount available for
redistribution under subsection (f)
from the allotments for that fiscal
year, exceeds (II) the total amounts
redistributed under paragraph (1) for
that fiscal year; multiplied by
``(ii) the ratio of the amount of
such State's unexpended allotment for
that fiscal year to the total amount
described in clause (i)(I) for that
fiscal year.
``(C) Use of up to 10 percent of retained
1998 allotments for outreach activities.--
Notwithstanding section 2105(c)(2)(A), with
respect to any State described in subparagraph
(A)(i), the State may use up to 10 percent of
the amount specified in subparagraph (B) for
fiscal year 1998 for expenditures for outreach
activities approved by the Secretary.
``(3) Determination of amounts.--For purposes of
calculating the amounts described in paragraphs (1) and
(2) relating to the allotment for fiscal year 1998 or
fiscal year 1999, the Secretary shall use the amounts
reported by the States not later than December 15,
2000, or November 30, 2001, respectively, on HCFA Form
64 or HCFA Form 21, as approved by the Secretary.''.
(b) Effective Date.--The amendments made by this section
shall take effect as if included in the enactment of section
4901 of BBA (111 Stat. 552).
SEC. 802. AUTHORITY TO PAY MEDICAID EXPANSION SCHIP COSTS FROM TITLE
XXI APPROPRIATION.
(a) Authority To Pay Medicaid Expansion SCHIP Costs From
Title XXI Appropriation.--Section 2105(a) (42 U.S.C. 1397ee(a))
is amended--
(1) by redesignating subparagraphs (A) through (D)
of paragraph (2) as clauses (i) through (iv),
respectively, and indenting appropriately;
(2) by redesignating paragraph (1) as subparagraph
(C), and indenting appropriately;
(3) by redesignating paragraph (2) as subparagraph
(D), and indenting appropriately;
(4) by striking ``(a) In General.--'' and the
remainder of the text that precedes subparagraph (C),
as so redesignated, and inserting the following:
``(a) Payments.--
``(1) In general.--Subject to the succeeding
provisions of this section, the Secretary shall pay to
each State with a plan approved under this title, from
its allotment under section 2104, an amount for each
quarter equal to the enhanced FMAP (or, in the case of
expenditures described in subparagraph (B), the Federal
medical assistance percentage (as defined in the first
sentence of section 1905(b))) of expenditures in the
quarter--
``(A) for child health assistance under the
plan for targeted low-income children in the
form of providing medical assistance for which
payment is made on the basis of an enhanced
FMAP under the fourth sentence of section
1905(b);
``(B) for the provision of medical
assistance on behalf of a child during a
presumptive eligibility period under section
1920A;''; and
(5) by adding after subparagraph (D), as so
redesignated, the following new paragraph:
``(2) Order of payments.--Payments under paragraph
(1) from a State's allotment shall be made in the
following order:
``(A) First, for expenditures for items
described in paragraph (1)(A).
``(B) Second, for expenditures for items
described in paragraph (1)(B).
``(C) Third, for expenditures for items
described in paragraph (1)(C).
``(D) Fourth, for expenditures for items
described in paragraph (1)(D).''.
(b) Elimination of Requirement To Reduce Title XXI
Allotment by Medicaid Expansion SCHIP Costs.--Section 2104 (42
U.S.C. 1397dd) is amended by striking subsection (d).
(c) Authority To Transfer Title XXI Appropriations to Title
XIX Appropriation Account as Reimbursement for Medicaid
Expenditures for Medicaid Expansion SCHIP Services.--
Notwithstanding any other provision of law, all amounts
appropriated under title XXI and allotted to a State pursuant
to subsection (b) or (c) of section 2104 of the Social Security
Act (42 U.S.C. 1397dd) for fiscal years 1998 through 2000
(including any amounts that, but for this provision, would be
considered to have expired) and not expended in providing child
health assistance or related services for which payment may be
made pursuant to subparagraph (C) or (D) of section 2105(a)(1)
of such Act (42 U.S.C. 1397ee(a)(1)) (as amended by subsection
(a)), shall be available to reimburse the Grants to States for
Medicaid account in an amount equal to the total payments made
to such State under section 1903(a) of such Act (42 U.S.C.
1396b(a)) for expenditures in such years for medical assistance
described in subparagraphs (A) and (B) of section 2105(a)(1) of
such Act (42 U.S.C. 1397ee(a)(1)) (as so amended).
(d) Conforming Amendments.--
(1) Section 1905(b) (42 U.S.C. 1396d(b)) is amended
in the fourth sentence by striking ``the State's
allotment under section 2104 (not taking into account
reductions under section 2104(d)(2)) for the fiscal
year reduced by the amount of any payments made under
section 2105 to the State from such allotment for such
fiscal year'' and inserting ``the State's available
allotment under section 2104''.
(2) Section 1905(u)(1)(B) (42 U.S.C.
1396d(u)(1)(B)) is amended by striking ``and section
2104(d)''.
(3) Section 2104 (42 U.S.C. 1397dd), as amended by
subsection (b), is further amended--
(A) in subsection (b)(1), by striking ``and
subsection (d)''; and
(B) in subsection (c)(1), by striking
``subject to subsection (d),''.
(4) Section 2105(c) (42 U.S.C. 1397ee(c)) is
amended--
(A) in paragraph (2)(A), by striking all
that follows ``Except as provided in this
paragraph,'' and inserting ``the amount of
payment that may be made under subsection (a)
for a fiscal year for expenditures for items
described in paragraph (1)(D) of such
subsection shall not exceed 10 percent of the
total amount of expenditures for which payment
is made under subparagraphs (A), (C), and (D)
of paragraph (1) of such subsection.'';
(B) in paragraph (2)(B), by striking
``described in subsection (a)(2)'' and
inserting ``described in subsection
(a)(1)(D)''; and
(C) in paragraph (6)(B), by striking
``Except as otherwise provided by law,'' and
inserting ``Except as provided in subparagraph
(A) or (B) of subsection (a)(1) or any other
provision of law,''.
(5) Section 2110(a) (42 U.S.C. 1397jj(a)) is
amended by striking ``section 2105(a)(2)(A)'' and
inserting ``section 2105(a)(1)(D)(i)''.
(e) Technical Amendment.--Section 2105(d)(2)(B)(ii) (42
U.S.C. 1397ee(d)(2)(B)(ii)) is amended by striking ``enhanced
FMAP under section 1905(u)'' and inserting ``enhanced FMAP
under the fourth sentence of section 1905(b)''.
(f) Effective Date.--The amendments made by this section
shall be effective as if included in the enactment of section
4901 of the BBA (111 Stat. 552).
SEC. 803. APPLICATION OF MEDICAID CHILD PRESUMPTIVE ELIGIBILITY
PROVISIONS.
Section 2107(e)(1) (42 U.S.C. 1397gg(e)(1)) is amended by
adding at the end the following new subparagraph:
``(D) Section 1920A (relating to
presumptive eligibility for children).''.
TITLE IX--OTHER PROVISIONS
Subtitle A--PACE Program
SEC. 901. EXTENSION OF TRANSITION FOR CURRENT WAIVERS.
Section 4803(d)(2) of BBA is amended--
(1) in subparagraph (A), by striking ``24 months''
and inserting ``36 months'';
(2) in subparagraph (A), by striking ``the initial
effective date of regulations described in subsection
(a)'' and inserting ``July 1, 2000''; and
(3) in subparagraph (B), by striking ``3 years''
and inserting ``4 years''.
SEC. 902. CONTINUING OF CERTAIN OPERATING ARRANGEMENTS PERMITTED.
(a) In General.--Section 1894(f)(2) (42 U.S.C.
1395eee(f)(2)) is amended by adding at the end the following
new subparagraph:
``(C) Continuation of modifications or
waivers of operational requirements under
demonstration status.--If a PACE program
operating under demonstration authority has
contractual or other operating arrangements
which are not otherwise recognized in
regulation and which were in effect on July 1,
2000, the Secretary (in close consultation
with, and with the concurrence of, the State
administering agency) shall permit any such
program to continue such arrangements so long
as such arrangements are found by the Secretary
and the State to be reasonably consistent with
the objectives of the PACE program.''.
(b) Conforming Amendment.--Section 1934(f)(2) (42 U.S.C.
1396u-4(f)(2)) is amended by adding at the end the following
new subparagraph:
``(C) Continuation of modifications or
waivers of operational requirements under
demonstration status.--If a PACE program
operating under demonstration authority has
contractual or other operating arrangements
which are not otherwise recognized in
regulation and which were in effect on July 1,
2000, the Secretary (in close consultation
with, and with the concurrence of, the State
administering agency) shall permit any such
program to continue such arrangements so long
as such arrangements are found by the Secretary
and the State to be reasonably consistent with
the objectives of the PACE program.''.
(c) Effective Date.--The amendments made by this section
shall be effective as included in the enactment of BBA.
SEC. 903. FLEXIBILITY IN EXERCISING WAIVER AUTHORITY.
In applying sections 1894(f)(2)(B) and 1934(f)(2)(B) of the
Social Security Act (42 U.S.C. 1395eee(f)(2)(B), 1396u-
4(f)(2)(B)), the Secretary of Health and Human Services--
(1) shall approve or deny a request for a
modification or a waiver of provisions of the PACE
protocol not later than 90 days after the date the
Secretary receives the request; and
(2) may exercise authority to modify or waive such
provisions in a manner that responds promptly to the
needs of PACE programs relating to areas of employment
and the use of community-based primary care physicians.
Subtitle B--Outreach to Eligible Low-Income Medicare Beneficiaries
SEC. 911. OUTREACH ON AVAILABILITY OF MEDICARE COST-SHARING ASSISTANCE
TO ELIGIBLE LOW-INCOME MEDICARE BENEFICIARIES.
(a) Outreach.--
(1) In general.--Title XI (42 U.S.C. 1301 et seq.)
is amended by inserting after section 1143 the
following new section:
``outreach efforts to increase awareness of the availability of
medicare cost-sharing
``Sec. 1144. (a) Outreach.--
``(1) In general.--The Commissioner of Social
Security (in this section referred to as the
`Commissioner') shall conduct outreach efforts to--
``(A) identify individuals entitled to
benefits under the medicare program under title
XVIII who may be eligible for medical
assistance for payment of the cost of medicare
cost-sharing under the medicaid program
pursuant to sections 1902(a)(10)(E) and 1933;
and
``(B) notify such individuals of the
availability of such medical assistance under
such sections.
``(2) Content of notice.--Any notice furnished
under paragraph (1) shall state that eligibility for
medicare cost-sharing assistance under such sections is
conditioned upon--
``(A) the individual providing to the State
information about income and resources (in the
case of an individual residing in a State that
imposes an assets test for such eligibility);
and
``(B) meeting the applicable eligibility
criteria.
``(b) Coordination With States.--
``(1) In general.--In conducting the outreach
efforts under this section, the Commissioner shall--
``(A) furnish the agency of each State
responsible for the administration of the
medicaid program and any other appropriate
State agency with information consisting of the
name and address of individuals residing in the
State that the Commissioner determines may be
eligible for medical assistance for payment of
the cost of medicare cost-sharing under the
medicaid program pursuant to sections
1902(a)(10)(E) and 1933; and
``(B) update any such information not less
frequently than once per year.
``(2) Information in periodic updates.--The
periodic updates described in paragraph (1)(B) shall
include information on individuals who are or may be
eligible for the medical assistance described in
paragraph (1)(A) because such individuals have
experienced reductions in benefits under title II.''.
(2) Amendment to title xix.--Section 1905(p) (42
U.S.C. 1396d(p)), as amended by section 710(a), is
amended by adding at the end the following new
paragraph:
``(6) For provisions relating to outreach efforts to
increase awareness of the availability of medicare cost-
sharing, see section 1144.''.
(b) GAO Report.--The Comptroller General of the United
States shall conduct a study of the impact of section 1144 of
the Social Security Act (as added by subsection (a)(1)) on the
enrollment of individuals for medicare cost-sharing under the
medicaid program. Not later than 18 months after the date that
the Commissioner of Social Security first conducts outreach
under section 1144 of such Act, the Comptroller General shall
submit to Congress a report on such study. The report shall
include such recommendations for legislative changes as the
Comptroller General deems appropriate.
(c) Effective Date.--The amendments made by subsection (a)
shall take effect one year after the date of the enactment of
this Act.
Subtitle C--Maternal and Child Health Block Grant
SEC. 921. INCREASE IN AUTHORIZATION OF APPROPRIATIONS FOR THE MATERNAL
AND CHILD HEALTH SERVICES BLOCK GRANT.
(a) In General.--Section 501(a) (42 U.S.C. 701(a)) is
amended in the matter preceding paragraph (1) by striking
``$705,000,000 for fiscal year 1994'' and inserting
``$850,000,000 for fiscal year 2001''.
(b) Effective Date.--The amendment made by subsection (a)
takes effect on October 1, 2000.
Subtitle D--Diabetes
SEC. 931. INCREASE IN APPROPRIATIONS FOR SPECIAL DIABETES PROGRAMS FOR
TYPE I DIABETES AND INDIANS.
(a) Special Diabetes Programs for Type I Diabetes.--Section
330B(b) of the Public Health Service Act (42 U.S.C. 254c-2(b))
is amended--
(1) by striking ``Notwithstanding'' and inserting
the following:
``(1) Transferred funds.--Notwithstanding''; and
(2) by adding at the end the following:
``(2) Appropriations.--For the purpose of making
grants under this section, there is appropriated, out
of any funds in the Treasury not otherwise
appropriated--
``(A) $70,000,000 for each of fiscal years
2001 and 2002 (which shall be combined with
amounts transferred under paragraph (1) for
each such fiscal years); and
``(B) $100,000,000 for fiscal year 2003.''.
(b) Special Diabetes Programs for Indians.--Section 330C(c)
of such Act (42 U.S.C. 254c-3(c)) is amended--
(1) by striking ``Notwithstanding'' and inserting
the following:
``(1) Transferred funds.--Notwithstanding''; and
(2) by adding at the end the following:
``(2) Appropriations.--For the purpose of making
grants under this section, there is appropriated, out
of any money in the Treasury not otherwise
appropriated--
``(A) $70,000,000 for each of fiscal years
2001 and 2002 (which shall be combined with
amounts transferred under paragraph (1) for
each such fiscal years); and
``(B) $100,000,000 for fiscal year 2003.''.
(c) Extension of Final Report on Grant Programs.--Section
4923(b)(2) of BBA is amended by striking ``2002'' and inserting
``2003''.
SEC. 932. APPROPRIATIONS FOR RICKY RAY HEMOPHILIA RELIEF FUND.
Section 101(e) of the Ricky Ray Hemophilia Relief Fund Act
of 1998 (42 U.S.C. 300c-22 note) is amended by adding at the
end the following: ``There is appropriated to the Fund
$475,000,000 for fiscal year 2001, to remain available until
expended.''.
Subtitle E--Information on Nurse Staffing
SEC. 941. POSTING OF INFORMATION ON NURSING FACILITY STAFFING.
(a) Medicare.--Section 1819(b) (42 U.S.C. 1395i-3(b)) is
amended by adding at the end the following new paragraph:
``(8) Information on nurse staffing.--
``(A) In general.--A skilled nursing
facility shall post daily for each shift the
current number of licensed and unlicensed
nursing staff directly responsible for resident
care in the facility. The information shall be
displayed in a uniform manner (as specified by
the Secretary) and in a clearly visible place.
``(B) Publication of data.--A skilled
nursing facility shall, upon request, make
available to the public the nursing staff data
described in subparagraph (A).''.
(b) Medicaid.--Section 1919(b) (42 U.S.C. 1395r(b)) is
amended by adding at the end the following new paragraph:
``(8) Information on nurse staffing.--
``(A) In general.--A nursing facility shall
post daily for each shift the current number of
licensed and unlicensed nursing staff directly
responsible for resident care in the facility.
The information shall be displayed in a uniform
manner (as specified by the Secretary) and in a
clearly visible place.
``(B) Publication of data.--A nursing
facility shall, upon request, make available to
the public the nursing staff data described in
subparagraph (A).''.
(c) Effective Date.--The amendments made by this section
shall take effect on January 1, 2003.
Subtitle F--Adjustment of Multiemployer Plan Benefits Guaranteed
SEC. 951. MULTIEMPLOYER PLAN BENEFITS GUARANTEED.
(a) In General.--Section 4022A(c) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1322a(c)) is
amended--
(1) by striking ``$5'' each place it appears in
paragraph (1) and inserting ``$11'';
(2) by striking ``$15'' in paragraph (1)(A)(i) and
inserting ``$33''; and
(3) by striking paragraphs (2), (5), and (6) and by
redesignating paragraphs (3) and (4) as paragraphs (2)
and (3), respectively.
(b) Effective Date.--The amendments made by this section
shall apply to any multiemployer plan that has not received
financial assistance (within the meaning of section 4261 of the
Employee Retirement Income Security Act of 1974) within the 1-
year period ending on the date of the enactment of this Act.
MEDICARE, MEDICAID, AND SCHIP BENEFITS IMPROVEMENT AND PROTECTION ACT
OF 2000
Following is explanatory language on H.R. 5661, as
introduced on December 14, 2000. The conferees on H.R. 4577
agree with the matter included in H.R. 5661 and enacted in this
conference report by reference and the following description of
it.
TITLE I--MEDICARE BENEFICIARY IMPROVEMENTS
SUBTITLE A--IMPROVED PREVENTIVE BENEFITS
Section 101. Coverage of biennial screening pap smear and pelvic exams
The provision modifies current law to provide Medicare
coverage for biennial screening pap smears and pelvic exams,
effective July 1, 2001.
Section 102. Coverage of screening for glaucoma
The provision would add Medicare coverage for annual
glaucoma screenings, beginning January 1, 2002, for persons
determined to be at high risk for glaucoma, individuals with a
family history of glaucoma, and individuals with diabetes. The
service would have to be furnished by or under the supervision
of an optometrist or ophthalmologist who is legally authorized
to perform such services in the state where the services are
furnished.
Section 103. Coverage of screening colonoscopy for average risk
individuals
The provision would authorize coverage for screening
colonoscopies, beginning July 1, 2001, for all individuals, not
just those at high risk. For persons not at high risk, payments
could not be made for such procedures if performed within 10
years of a previous screening colonoscopy or within 4 years of
a screening flexible sigmoidoscopy.
Section 104. Modernization of screening mammography benefit
Beginning in 2002, the provision would eliminate the
statutorily prescribed payment rate for screening mammography
payments and specify that the services are to be paid under the
physician fee schedule. The provision would specify two new
payment rates for mammographies that utilize advanced new
technology for the period April 1, 2001, to December 31, 2001.
Payment for technologies that directly take digital images
would equal 150% of what would otherwise be paid for a
bilateral diagnostic mammography. For technologies that convert
standard film images to digital form, an additional payment of
fifteen dollars would be authorized. The Secretary would be
required to determine whether a new code is required for tests
furnished after 2001.
Section 105. Coverage of medical nutrition therapy services for
beneficiaries within diabetes or a renal disease
The provision would establish, effective January 1, 2002,
Medicare coverage for medical nutrition therapy services for
beneficiaries who have diabetes or a renal disease. Medical
nutrition therapy services would be defined as nutritional
diagnostic, therapy and counseling services for the purpose of
disease management which are furnished by a registered
dietician or nutrition professional, pursuant to a referral by
a physician. The provision would specify that the amount paid
for medical nutrition therapy services would equal the lesser
of the actual charge for the service or 85% of the amount that
would be paid under the physician fee schedule if such services
were provided by a physician. Assignment would be required for
all claims. The Secretary would be required to submit a report
to Congress that contains an evaluation of the effectiveness of
services furnished under this provision.
subtitle b--other beneficiary improvements
Section 111. Acceleration of reduction of beneficiary copayment for
hospital outpatient department services
Effective April 1, 2001, the provision would modify
current law by limiting the amount of a beneficiary's copayment
for a procedure in a hospital outpatient department to the
hospital inpatient deductible applicable in that year.
In addition, starting in April, 2001, the provision would
require the Secretary of HHS to reduce the effective copayment
rate for outpatient services to a maximum rate of 57% for the
remainder of 2001, 55% in 2002 and 2003, 50% in 2004, 45% in
2005, and 40% in 2006 and subsequent years. As stated in BBA
97, hospitals may waive any increase in coinsurance that may
have arisen from the implementation of the outpatient
prospective payment system (PPS).
The Comptroller General would be required to work with
the National Association of Insurance Commissioners (NAIC) to
evaluate the extent to which premiums for supplemental policies
reflect the acceleration of the reduction in beneficiary
coinsurance of hospital outpatient services and result in
savings to beneficiaries and to report to the Congress by April
1, 2004.
Section 112. Preservation of coverage of drugs and biologicals under
part B of the Medicare Program
The provision would clarify policy with regard to
coverage of drugs, provided incident to physicians services,
that cannot be self-administered. The provision would specify
that such drugs are covered when they are not usually self-
administered by the patient.
Section 113. Elimination of time limitation on Medicare benefits for
immunosuppressive drugs
The provision would eliminate the current time
limitations on the coverage of immunosuppressive drugs for
beneficiaries would have received a covered organ transplant.
The provision would apply to drugs furnished, on or after the
date enactment.
Section 114. Imposition of billings limits on drugs
The provision would specify that payment for drugs under
Part B must be made on the basis of assignment.
Section 115. Waiver of 24-month waiting period for Medicare coverage of
individuals disabled with amyotrophic lateral sclerosis (ALS)
The provision would waive the 24-month waiting period
(otherwise required for an individual to establish Medicare
eligibility on the basis of a disability) for persons medically
determined to have amyotrophic lateral sclerosis (ALS). The
provision would be effective July 1, 2001.
subtitle C--demonstration projects and studies
Section 121. Demonstration project for disease management for severely
chronically ill Medicare beneficiaries
The Secretary would be required to conduct a
demonstration project to illustrate the impact on costs and
health outcomes of applying disease management to Medicare
beneficiaries with diagnosed, advanced-stage congestive heart
failure, diabetes, or coronary heart disease. Up to 30,000
beneficiaries would be able to enroll, on a voluntary basis,
for disease management services related to their chronic health
condition. In addition, contractors providing disease
management services would be responsible for providing
beneficiaries enrolled in the project with prescription drugs.
Section 122. Cancer prevention and treatment demonstration for ethnic
and racial minorities
The provision would require the Secretary to conduct
demonstration projects for the purpose of developing models and
evaluating methods that improve the quality of cancer
prevention services, improve clinical outcomes, eliminates
disparities in the rate of preventive screening measures, with
promote collaboration with community-based organizations for
ethnic and racial minorities.
Section 123. Study on Medicare coverage of routine thyroid screening
The provision would require the Secretary to request the
National Academy of Sciences, and as appropriate in conjunction
with the United States Preventive Services Task Force, to
analyze the addition of routine thyroid screening under
Medicare. The analysis would consider the short term and long
term benefits, and cost to Medicare, of adding such coverage
for some or all beneficiaries.
Section 124. MedPAC study on consumer coalitions
The provision would require MedPAC to conduct a study
that examines the use of consumer coalitions in the marketing
of Medicare+Choice plans. A consumer coalition would be defined
as a non-profit community-based organization that provides
information to beneficiaries about their health options under
Medicare and negotiates with Medicare+Choice plans on benefits
and premiums for beneficiaries who are members of the coalition
or otherwise affiliated with it.
Section 125. Study on limitation on State payment for Medicare cost-
sharing affecting access to services for qualified Medicare
beneficiaries
The provision would require the Secretary of HHS to
conduct a study to determine if access to certain services
(including mental health services) has been affected by a
specific provision in law. The provision specifies that states
are not required to pay Medicare cost-sharing charges for QMBs
to the extent these payments would result in a total payment in
excess of the Medicaid level.
Section 126. Studies on preventive interventions in primary care for
older Americans
The provision would require the Secretary, acting through
the United States Preventive Services Task Force, to conduct a
series of studies designed to identify preventive interventions
in primary care for older Americans.
Section 127. MedPAC study and report on Medicare coverage of cardiac
and pulmonary rehabilitation and therapy services
The provision would require MedPAC to conduct a study on
coverage of cardiac and pulmonary rehabilitation therapy
services under Medicare.
Section 128. Lifestyle modification program demonstration
The provision modifies the current medicare demonstration
project, known as the Lifestyle Modification Program. It would
extend the project to 4 years and to assure 1,800 beneficiaries
complete the Program in order to provide a statistically valid
sample. The provision requires a study of its cost-
effectiveness and provides for an initial report after 900
beneficiaries complete the Program and a final report after
1,800 beneficiaries complete the Program.
TITLE II--RURAL HEALTH CARE IMPROVEMENTS
subtitle A--critical access hospital provisions
Section 201. Clarification of no beneficiary cost-sharing for clinical
diagnostic laboratory tests furnished by critical access
hospitals
Effective for services furnished on or after the
enactment of BBRA99, Medicare beneficiaries would not be liable
for any coinsurance, deductible, copayment, or other cost
sharing amount with respect to clinical diagnostic laboratory
services furnished as an outpatient critical access hospital
(CAH) service. Conforming changes that clarify that CAHs are
reimbursed on a reasonable cost basis for outpatient clinical
diagnostic laboratory services are also included.
Section 202. Assistance with fee schedule payment for professional
services under all-inclusive rate
Effective for items and services furnished on or after
July 1, 2001, Medicare would pay a CAH for outpatient services
based on reasonable costs or, at the election of an entity,
would pay the CAH a facility fee based on reasonable costs plus
an amount based on 115% of Medicare's fee schedule for
professional services.
Section 203. Exemption of critical access hospital swing beds from SNF
PPS
Swing beds in critical access hospitals (CAHs) would be
exempt from the SNF prospective payment system. CAHs would be
paid for covered SNF services on a reasonable cost basis.
Section 204. Payment in critical access hospitals for emergency room
on-call physicians
When determining the allowable, reasonable cost of
outpatient CAH services, the Secretary would recognize amounts
for the compensation and related costs for on-call emergency
room physicians who are not present on the premises, are not
otherwise furnishing services, and are not on-call at any other
provider or facility. The Secretary would define the reasonable
payment amounts and the meaning of the term ``on-call.'' The
provision would be effective for cost reporting periods
beginning on or after October 1, 2001.
Section 205. Treatment of ambulance services furnished by certain
critical access hospitals
Ambulance services provided by a critical access hospital
(CAH) or provided by an entity that is owned or operated by a
CAH would be paid on a reasonable cost basis if the CAH or
entity is the only provider or supplier of ambulance services
that is located within a 35-mile drive of the CAH. The
provision would be effective for services furnished on or after
enactment.
Section 206. GAO study on certain eligibility requirements for critical
access hospitals
Within one year of enactment, GAO would be required to
conduct a study on the eligibility requirements for critical
access hospitals (CAHs) with respect to limitations on average
length of stay and number of beds, including an analysis of the
feasibility of having a distinct part unit as part of a CAH and
the effect of seasonal variations in CAH eligibility
requirements. GAO also would be required to analyze the effect
of seasonal variations in patient admissions on critical access
hospital eligibility requirements with respect to limits on
average annual length of stay and number of beds.
subtitle b--other rural hospitals provisions
Section 211. Treatment of rural disproportionate share hospitals
For discharges occurring on or after April 1, 2001, all
hospitals would be eligible to receive DSH payments when their
DSH percentage (threshold amount) exceeds 15%. The DSH payment
formulas for sole community hospitals (SCHs), rural referral
centers (RRCs), rural hospitals that are both SCHs and RRCs,
small rural hospitals and urban hospitals with less than 100
beds would be modified.
Section 212. Option to base eligibility for Medicare dependent, small
rural hospital program on discharges during 2 of the 3 most
recent audited cost reporting periods
An otherwise qualifying small rural hospital would be
able to be classified as an MDH if at least 60% of its days or
discharges were attributable to Medicare Part A beneficiaries
in at least two of the three most recent audited cost reporting
periods for which the Secretary has a settled cost report.
Section 213. Extension of option to use rebased target amounts to all
sole community hospitals
Any SCH would be able to elect payment based on hospital
specific, updated FY1996 costs if this target amount resulted
in higher Medicare payments. There would be a transition period
with Medicare payment based completely on updated FY1996
hospital specific costs for discharges occurring after FY2003.
Section 214. MedPAC analysis of impact of volume on per unit cost of
rural hospitals with psychiatric units
MedPAC would be required to report on the impact of
volume on the per unit cost of rural hospitals with psychiatric
units and include in its report a recommendation on whether
special treatment is warranted.
subtitle c--other rural provisions
Section 221. Assistance for providers of ambulance services in rural
areas
The provision would make additional payments to providers
of ground ambulance services for trips, originating in rural
areas, that are greater than 17 miles and up to 50 miles. The
payments would be made for services furnished on or after July
1, 2001 and before January 1, 2004. The provision would require
the Comptroller General to conduct a study to examine both the
costs of efficiently providing ambulance services for trips
originating in rural areas and the means by which rural areas
with low population densities can be identified for the purpose
of designating areas in which the costs of ambulance services
would be expected to be higher. The Comptroller General would
submit a report to Congress by June 30, 2002 on the results of
the study, together with recommendations on steps that should
be taken to assure access to ambulance services for trips
originating in rural areas. The Secretary would be required to
take these findings into account when establishing the fee
schedule, beginning with 2004.
Section 222. Payment for certain physician assistant services
This provision would give permanent authority to
physician assistants who owned rural health clinics that lost
their designation as such to bill Medicare directly.
Section 223. Expansion of Medicare payment for telehealth services
The provision would establish revised payment provisions,
effective no later than October 1, 2001, for services that are
provided via a telecommunications system by a physician or
practitioner to an eligible beneficiary in a rural area. The
Secretary would be required to make payments for telehealth
services to the physician or practitioner at the distant site
in an amount equal to the amount that would have been paid to
such physician or practitioner if the service had been
furnished to the beneficiary without the use of a
telecommunications system. A facility fee would be paid to the
originating site. Originating sites would include a physician
or practitioner office, a critical access hospital, a rural
health clinic, a Federally qualified health center or a
hospital. The Secretary would be required to conduct a study,
and submit recommendations to Congress, that identify
additional settings, sites, practitioners and geographic areas
that would be appropriate for telehealth services. Entities
participating in Federal demonstration projects approved by, or
receiving funding from, the Secretary as of December 31, 2000
would be qualified sites.
Section 224. Expanding access to rural health clinics
All hospitals of less than 50 beds that own rural health
clinics would be exempt from the per visit limit.
Section 225. MedPAC study on low-volume, isolated rural health
providers
MedPAC would be required to study the effect of low
patient and procedure volume on the financial status and
Medicare payment methods for hospital outpatient services,
ambulance services, hospital inpatient services, skilled
nursing facility services, and home health services in isolated
rural health care providers.
TITLE III--PROVISIONS RELATING TO PART A
SUBTITLE A--INPATIENT HOSPITAL SERVICES
Section 301. Revision of acute care hospital payment update for 2001
All hospitals would receive the full market basket index
(MBI) as an update for FY2001. In order to implement this
increase for hospitals other than sole community hospitals
(SCH), those hospitals would receive the MBI minus 1.1
percentage points (the current statutory provision) for
discharges occurring on or after October 1, 2000 and before
April 1, 2001; these non-SCH hospitals would receive the MBI
plus 1.1 percentage points for discharges occurring on or after
April 1, 2001 and before October 1, 2001. As indicated by
section 547(a), this payment increase would not apply to
discharges occurring after FY2001. For FY2002 and FY2003,
hospitals would receive the MBI minus .55 percentage points.
For FY2004 and subsequently, hospitals would receive the MBI.
The Secretary is directed to consider the prices of blood
and blood products purchased by hospitals in the next rebasing
and revision of the hospital market basket to determine whether
those prices are adequately reflected in the market basket
index. MedPAC is directed to conduct a study on increased
hospital costs attributable to complying with new blood safety
measures and providing such services using new technologies
among other issues.
For discharges occurring on or after October 1, 2001, the
Secretary would be able to adjust the standardized amount in
future fiscal years to correct for changes in the aggregate
Medicare payments caused by adjustments to the DRG weighting
factors in a previous fiscal year (or estimates that such
adjustments for a future fiscal year) that did not take into
account coding improvements or changes in discharge
classifications and did not accurately represent increases in
the resource intensity of patients treated by PPS hospitals.
Section 302. Additional modification in transition for indirect medical
education (IME) percentage adjustment
Teaching hospitals would receive 6.25% IME payment
adjustment (for each 10% increase in teaching intensity) for
discharges occurring on or after October 1, 2000 and before
April 1, 2001. The IME adjustment would increase to 6.75% for
discharges on or after April 1, 2001 and before October 1,
2001. As indicated in Section 547(a), the payment increase
would not apply to discharges after FY2001. The IME adjustment
would be 6.5% in FY2002 and 5.5% in FY2003 and in subsequent
years.
Section 303. Decrease in reductions for disproportionate share hospital
(DSH) payments
Reductions in the DSH payment formula amounts would be 2%
in FY2001, 3% in FY2002, and 0% in FY2003 and subsequently. To
implement the FY2001 provision, DSH amounts for discharges
occurring on or after October 1, 2000 and before April 1, 2001,
would be reduced by 3% which was the reduction in effect prior
to enactment of this provision. DSH amounts for discharges
occurring on or after April 1, 2001 and before October 1, 2001
would be reduced by only 1 percentage point. As indicated by
Section 547(a), this payment adjustment would not apply to
discharges after FY2001.
Section 304. Wage index improvements
For FY2001 or any fiscal year thereafter, a Medicare
Geographic Classification Review Board (MGCRB) decision to
reclassify a prospective payment system hospital for use of a
different area's wage index would be effective for 3 fiscal
years. The Secretary would establish procedures whereby a
hospital could elect to terminate this reclassification
decision before the end of such period. For FY2003 and
subsequently, MGCRB would base any comparison of the average
hourly wage of the hospital with the average hourly wage for
hospitals in the area using data from each of the two
immediately preceding surveys as well as data from the most
recently published hospital wage survey.
The Secretary would establish a process which would first
be available for discharges occurring on or after October 1,
2001 where a single wage index would be computed for all
geographic areas in the state. If the Secretary applies a
statewide geographic index, an application by an individual
hospital would not be considered. The Secretary would also
collect occupational data every three years in order to
construct an occupational mix adjustment for the hospital area
wage index. The first complete data collection effort would
occur no later than September 30, 2003 for application
beginning October 1, 2004.
Section 305. Payment for inpatient services in rehabilitation hospitals
Total payments for rehabilitation hospitals in FY2002
would equal the amounts of payments that would have been made
if the rehabilitation prospective payment system (PPS) had not
been enacted. A rehabilitation facility would be able to make a
one-time election before the start of the PPS to be paid based
on a fully phased-in PPS rate.
Section 306. Payment for inpatient services of psychiatric hospitals
The provision would increase the incentive payments for
psychiatric hospitals and distinct part units of 3% for cost
reporting periods beginning on or after October 1, 2000.
Section 307. Payment for inpatient services of long-term care hospitals
For cost reporting periods beginning during FY2001, long
term hospitals would have the national cap increased by 2% and
the target amount increased by 25%. Neither these payments nor
the increased bonus payments provided by BBRA 99 would be
factored into the development of the prospective payment system
(PPS) for long term hospitals. When developing the PPS for
inpatient long term hospitals, the Secretary would be required
to examine the feasibility and impact of basing payment on the
existing (or refined) acute hospital DRGs and using the most
recently available hospital discharge data. If the Secretary is
unable to implement a long term hospital PPS by October 1,
2002, the Secretary would be required to implement a PPS for
these hospitals using the existing acute hospital DRGs that
have been modified where feasible.
subtitle b--adjustments to pps payments for skilled nursing facilities
Section 311. Elimination of reduction in skilled nursing facility (SNF)
market basket update in 2001
The provision would modify the schedule and rates
according to which federal per diem payments are updated. In
FY2002 and FY2003 the updates would be the market basket index
increase minus 0.5 percentage point. The update rate for the
period October 1, 2000, through March 31, 2001, would be the
market basket index increase minus 1 percentage point; the
update rate for the period April 1, 2001, through September 30,
2001, would be the market basket index increase plus one
percentage point (this increase would not be included when
determining payment rates for the subsequent period). Temporary
increases in the federal per diem rates provided by BBRA 99
would be in addition to the increases in this provision. By
July 1, 2002, the Comptroller General would be required to
submit a report to Congress on the adequacy of Medicare
payments to SNFs, taking into account the role of private
payers, medicaid, and case mix on the financial performance of
SNFs and including an analysis, by RUG classification, of the
number and characteristics of such facilities. By January 1,
2005, the Secretary would be required to submit a report to
Congress on alternatives for classification of SNF patients.
Section 312. Increase in nursing component of PPS Federal rate
The provision would increase the nursing component of
each RUG by 16.66 percent over current law for SNF care
furnished after April 1, 2001, and before October 1, 2002.
The Comptroller General would be required to conduct an
audit of nurse staffing ratios in a sample of SNFs and to
report to Congress by August 1, 2002, on the results of the
audit of nurse staffing ratios and recommend whether the
additional 16.66 percent payment should be continued.
Section 313. Application of SNF consolidated billing requirement
limited to part A covered stays
Effective January 1, 2001, the provision would limit the
current law consolidated billing requirement to services and
items furnished to SNF residents in a Medicare part A covered
stay and to therapy services furnished in part A and part B
covered stay.
The Inspector General of HHS would be required to monitor
part B payments to SNFs on behalf of residents who are not in a
part A covered stay.
Section 314. Adjustment of rehabilitation RUGS to correct anomaly in
payment rates
Effective for skilled nursing facility (SNF) services
furnished on or after April 1, 2002, the provision would
increase by 6.7 percent certain federal per diem payments to
ensure that Medicare payments for SNF residents with ``ultra
high'' and ``high'' rehabilitation therapy needs are
appropriate in relation to payments for residents needing
``medium'' or ``low'' levels of therapy. The 20 percent
additional payment that was provided in BBRA 99 for certain
RUGS is removed to make this provision budget neutral.
The Inspector General of HHS would be required to review
and report to Congress by October 1, 2001, regarding whether
the RUG payment structure as in effect under the BBRA 99
includes incentives for the delivery of inadequate care.
Section 315. Establishment of process for geographic reclassification
The provision would permit the Secretary to establish a
process for geographic reclassification of skilled nursing
facilities based upon the method used for inpatient hospitals.
The Secretary may implement the process upon completion of the
data collection necessary to calculate an area wage index for
workers in skilled nursing facilities.
subtitle c--hospice care
Section 321. 5 Percent increase in payment base
The provision would increase, effective April 1, 2001,
the base Medicare daily payment rates for hospice care for
fiscal year 2001 by 5 percentage points over the rates
otherwise in effect. This increase would continue to apply
after fiscal year 2001. The temporary increase in payment rates
provided in BBRA 99 for FY2001 and FY2002 (.5 percent and .75
percent, respectively) would not be affected. In addition, the
hospice wage index for one Metropolitan Statistical Area for
fiscal year 2000 would be adjusted.
Section 322. Clarification of physician certification
Effective for certifications of terminal illness made on
or after the date of enactment, the provision would modify
current law to specify that the physician's or hospice medical
director's certification of terminal illness would be based on
his/her clinical judgment regarding the normal course of the
individual's illness. The Secretary would be required to study
and report to Congress within 2 years of enactment on the
appropriateness of certification of terminally ill individuals
and the effect of this provision on such certification.
Section 323. MedPAC report on access to, and use of, hospice benefit
The provision would require MedPAC to examine the factors
affecting the use of Medicare hospice benefits, including delay
of entry into the hospice program and urban and rural
differences in utilization rates. The provision would require a
report on the study to be submitted to Congress 18 months after
enactment.
subtitle d--other provisions
Section 331. Relief from Medicare Part A late enrollment penalty for
group buy-in for state and local retirees
The provision would exempt certain state and local
retirees, retiring prior to January 1, 2002, from the Part A
delayed enrollment penalties. These would be groups of persons
for whom the state or local government elected to pay the
delayed Part A enrollment penalty for life. The amount of the
delayed enrollment penalty which would otherwise be assessed
would be reduced by an amount equal to the total amount of
Medicare payroll taxes paid by the employee and the employer on
behalf of the employee. The provision would apply to premiums
for months beginning with January 1, 2002.
TITLE IV--PROVISIONS RELATING TO PART B
subtitle a--hospital outpatient services
Section 401. Revision of hospital outpatient PPS payment update
The provision would modify the current law update rates
applicable to the hospital outpatient PPS by providing in
FY2001 an update equal to the full rate of increase in the
market basket index. As under current law, the increase in
FY2002 would be the market basket index increase minus one
percentage point.
A special rule applies to the OPD PPS rates in 2001: For
the period January 2, 2001 through March 31, 2001, the PPS
amounts shall be those in effect on the day before
implementation of the new law. For the periods April 1, 2001,
through December 31, 2001, the PPS amounts in effect during the
prior period shall be increased by 0.32%.
Effective as if enacted with BBA 97, if the Secretary
determines that updates to the adjustment factor used to
convert the relative utilization weights under the PPS into
payment amounts have, or are likely to, result in hospitals'
changing their coding or classification of covered services,
thereby changing aggregate payments, the Secretary would be
authorized to adjust the conversion factor in later years to
eliminate the effect of coding or classification changes.
Section 402. Clarifying process and standards for determining
eligibility of devices for pass-through payments under hospital
outpatient PPS
The provision would modify the procedures and standards
by which certain medical devices are categorized and determined
eligible for pass-through payments under the PPS. Through
public rule-making procedures, the Secretary would be required
to establish criteria for defining special payment categories
under the PPS for new medical devices. The Secretary would be
required to promulgate, through the use of a program
memorandum, initial categories that would encompass each of the
individual devices that the Secretary had designated as
qualifying for the pass-through payments to date. In addition,
similar devices not so designated because they were payable
under Medicare prior to December 31, 1996, would also be
included in initial categories. The Secretary would be required
to create additional new categories in the future to
accommodate new technologies meeting the ``not insignificant
cost'' test established in BBRA 99.
Once the categories were established, pass-through
payments currently authorized under section 1833(t)(b) of the
Social Security Act would proceed on a category-specific,
rather than device-specific basis. These payments would be
designated as ``category-based pass-through payments.'' These
payments would be continued to be made for the 2 to 3 years
payment period originally specified in BBRA 99, and, for each
given category, would begin when the first such payment is made
for any device included in a specified category. At the
conclusion of this transitional payment period, categories
would sunset and payment for the device would be included in
the underlying PPS payment for the related service.
Section 403. Application of OPD PPS transitional corridor payments to
certain hospitals that did not submit a 1996 cost report
Effective as if enacted with BBRA 99, the provision would
modify current law as enacted in BBA 99 to enable all
hospitals, not just those hospitals filing 1996 cost reports,
to be eligible for transitional payments under the PPS.
Section 404. Application of rules for determining provider-based status
for certain entities
The provision would grandfather existing arrangements
whereby certain entities (such as outpatient clinics, skilled
nursing facilities, etc.) are considered ``provider-based''
entities, meaning they are affiliated financially and
clinically with a main hospital. Existing provider-based status
designations would continue for two years beginning October 1,
2000. If a facility or organization requests approval for
provider-based status during the period October 1, 2000,
through September 31, 2002, it could not be treated as if it
did not have such status during the period of time the
determination is pending. In making such a status determination
on or after October 1, 2000, HCFA would treat the applicant as
satisfying any requirements or standards for geographic
location if it satisfied geographic location requirements in
regulations or is located not more than 35 miles from the main
campus of the hospital.
An applicant facility or organization would be treated as
satisfying all requirements for provider-based status if it is
owned or operated by a unit of State or local government or is
a public or private nonprofit corporation that is formally
granted governmental powers by a unit of State or local
government, or is a private hospital that, under contract,
serves certain low income households or has a certain
disproportionate share adjustment.
These provisions are in effect during a two-year period
beginning on October 1, 2000.
Section 405. Treatment of children's hospitals under prospective
payment system
The BBRA 99 provides special ``hold harmless'' payments
to ensure that cancer hospitals would receive no less under the
hospital outpatient PPS than they would have received, in
aggregate, under the ``pre-BBA'' system, that is, the pre-PPS
payment system. Effective as if included in the BBRA 99, the
provision would extend this hold harmless protection to
children's hospitals.
Section 406. Inclusion of temperature monitored cryoablation
The provision would include temperature monitored
cryoablation as part of the transitional pass-through for
certain medical devices, drugs, and biologicals under the
hospital outpatient prospective payment system, effective April
1, 2001.
subtitle b--provisions relating to physicians services
Section 411. GAO studied relating to physicians' services
The provision would require the GAO to conduct a study on
the appropriateness of furnishing in physicians offices
specialist services (such as gastrointestinal endoscopic
physicians services) which are ordinarily furnished in hospital
outpatient departments. The GAO would not be required to study
the refinements to the practice expense relative value made
during the transition to the resource-based system.
Section 412. Physician group practice demonstration
The provision would require the Secretary to conduct
demonstration projects to test, and if proven effective, expand
the use of incentives to health care groups participating under
Medicare. Such incentives would be designed to encourage
coordination of care furnished under Medicare Parts A and B by
institutional and other providers and practitioners; to
encourage investment in administrative structures and processes
to encourage efficient service delivery; and to reward
physicians for improving health outcomes. The Secretary would
establish for each group participating in a demonstration, a
base expenditure amount and an expenditure target (reflecting
base expenditures adjusted for risk and expected growth rates).
The Secretary would pay each group a bonus for each year equal
to a portion of the savings for the year relative to the
target. In addition, at such time as the Secretary had
developed appropriate criteria, the Secretary would pay an
additional bonus related to process and outcome improvements.
Total payments under demonstrations could not exceed what the
Secretary estimates would be paid in the absence of the
demonstration program.
Section 413. Study on enrollment procedures for groups that retain
independent contractor physicians
The provision would require the Comptroller General to
conduct a study of the current Medicare enrollment process for
groups that retain independent contractor physicians;
particular emphasis would be placed on hospital-based
physicians, such as emergency department staffing groups.
subtitle c--other services
Section 421. One-year extension of moratorium on therapy caps; report
on standards for supervision of physical therapy assistants
The provision would extend the moratorium on the physical
therapy and occupational therapy caps for 1 year through 2002;
it would also extend the requirement for focused reviews of
therapy claims for the same period. The Secretary would be
required to conduct a study on the implications of eliminating
the ``in the room'' supervision requirements for Medicare
payment for physical therapy assistants who are supervised by
physical therapists and the implications of this requirement on
the physical therapy cap.
Section 422. Update in renal dialysis composite rate
The provision would specify that the composite rate
payment for renal dialysis service would be increased by 2.4%
for 2001. The provision would require the Secretary to collect
data and develop an end-stage renal disease (ESRD) market
basket whereby the Secretary could estimate before the
beginning of a year the percentage increase in costs for the
mix of labor and non-labor goods and services included in the
composite rate. The Secretary would report to Congress on the
index together with recommendations on the appropriateness of
an annual or periodic update mechanism for dialysis services.
The Comptroller General would be required to study the access
of beneficiaries to dialysis services. There is a hold harmless
provision for facilities who received exceptions for their 2000
rates. In addition, facilities which did not apply for an
exception in 2000 would have the opportunity to apply during
the first 6 months of 2001. Exceptions granted under the hold
harmless or granted during the extension period, would continue
to apply so long as they provide for higher payment rates. The
provision would specify that for the period January 1, 2001-
March 31, 2001, the applicable composite rate is the rate in
effect before enactment of this provision. The rate in effect
for the period April 1, 2001-December 31, 2001 is the rate
established under this section increased by a transitional
percentage allowance equal to 0.39 percent.
Section 423. Payment for ambulance services
The provision would provide for the full inflation update
in ambulance payments for 2001. It would also specify that any
phase-in of the ambulance fee schedule would provide for full
payment of national mileage rates in states where separate
mileage payments were not made prior to implementation of the
fee schedule. The provision would specify that for the period
January 1, 2001-June 30, 2001, the inflation update would be
that determined prior to enactment of this provision. For
services furnished from July 1, 2001-December 31, 2001, the
update would be 4.7%. The provision relating to mileage
payments would be effective July 1, 2001.
Section 424. Ambulatory surgical centers
The provision would delay implementation of proposed
regulatory changes to the ambulatory payment classification
system, which are based on 1994 cost data, until January 1,
2002. At that time, such changes would be phased in over 4
years: in the first year the payment amounts would be 25
percent of the revised rates and 75 percent of the prior system
rates; in the second year payments would be 50 percent of the
revised rates and 50 percent of the prior system rates, etc.
The provision also requires that the revised system, based on
1999 (or later) cost data, be implemented January 1, 2003. (The
phase-in of the revised system and 1994 data would end when the
system with 1999 or later data was implemented.)
Section 425. Full update for durable medical equipment
The provision would modify updates to payments for
durable medical equipment. For 2001, the payments for covered
DME would be increased by the full increase in the consumer
price index for urban consumers (CPI-U) during the 12-month
period ending June 2000. In general, in 2002 and thereafter,
the annual update would equal the full increase in the CPI-U
for the 12 months ending the previous June. The provision
specify that for the period January 1, 2001, through June 30,
2000, the applicable amounts paid for DME are the amounts in
effect before enactment of the provision. The amounts in effect
for the period July 1, 2001, through December 31, 2001, would
be the amounts established under this section increased by a
transitional allowance of 3.28%.
Section 426. Full update for orthotics and prosthetics
The provision would modify updates to payments for
orthotics and prosthetics. In 2000, the rates would be
increased by one percent. In 2001, the increase would be equal
to the percentage increase in the CPI-U during the 12-month
period ending with June, 2000. For 2002, payments would be
increased by one percent over the prior year's amounts. The
provision would specify that for the period January 1, 2001,
through June 30, 2001, the applicable amounts paid for these
items would be the amounts in effect before enactment of this
provision. The amounts in effect for the period July 1, 2001,
through December 31, 2001, would be the amounts established
under this section increased by a transitional allowance of
2.6%.
Section 427. Establishment of special payment provisions and
requirements for prosthetics and certain custom fabricated
orthotic items
Under the provision, certain prosthetics or custom
fabricated orthotics would be covered by Medicare if furnished
by a qualified practitioner and fabricated by a qualified
practitioner or qualified supplier. The Secretary would be
required to establish a list of such items in consultation with
experts. Within one year of enactment, the Secretary would be
required to promulgate regulations to provide these items,
using negotiated rulemaking procedures.
Not later than 6 months from enactment, the Comptroller
General would be required to submit to Congress a report on the
Secretary's compliance with the Administrative Procedures Act
with regard to HCFA Ruling 96-1; certain impacts of that
ruling; the potential for fraud and abuse in provision of
prosthetics and orthotics under special payment rules and for
custom fabricated items; and the effect on Medicare and
Medicaid payments if that ruling were overturned.
Section 428. Replacement of prosthetic devices and parts
The provision would authorize Medicare coverage for
replacement of artificial limbs, or replacement parts for such
devices, if ordered by a physician for specified reasons.
Effective for items furnished on or after enactment, coverage
would apply to prosthetic items 3 or more years old, and would
supersede any 5-year age rules for such item under current law.
Section 429. Revised part B payment for drugs and bioliogicals and
related services
The provision would require the Comptroller General to
study and submit a report to Congress and the Secretary on the
reimbursement for drugs and biologicals and for related
services under Medicare; the report would include specific
recommendations for revised payment methodologies. The
Secretary would revise the current payment methodologies for
covered drugs and biologicals and related services based on
these recommendations; however, total payments under the
revised methodologies could not exceed the aggregate payments
the Secretary estimates would have been made under the current
law. The provision would establish a moratorium on reductions
in payment rates, in effect on January 1, 2001, until the
Secretary reviewed the GAO report.
Section 430. Contrast enhanced diagnostic procedures under hospital
prospective payment system
The provision would require the Secretary to create under
the hospital outpatient PPS additional and separate groups of
covered services which include procedures that utilize contrast
agents and would include contrast agents within the definition
of ``drugs'' for purposes of the medicare title. The provision
would apply to items and services furnished on or after July 1,
2001.
Section 431. Qualifications for community mental health centers
The provision would clarify the qualifications for
community mental health centers providing partial
hospitalization services under Medicare.
Section 432. Modification of Medicare billing requirements for certain
Indian providers
The provision would authorize hospitals and free-standing
ambulatory care clinics of the Indian Health Service or
operated by a tribe or tribal organization to bill Medicare
Part B for certain services furnished at the direction of the
hospital or clinic. Services covered under the provision are
those furnished under the physician fee schedule, and services
furnished by a practitioner or therapist under a fee schedule.
The provision would be effective July 1, 2001.
Section 433. GAO study on coverage of surgical first assisting services
of certified registered nurse first assistants
The provision would require the Comptroller General to
conduct a study on the effect on both the program and
beneficiaries of covering surgical first assisting services of
certified registered nurse first assistants.
Section 434. MedPAC study and report on Medicare reimbursement for
services provided by certain providers
The provision would require MedPAC to conduct a study on
the appropriateness of current payment rates for services
provided by a certified nurse midwife, physician assistant,
nurse practitioner, and clinical nurse specialist, including
specifically for orthopedic physician assistants.
Section 435. MedPAC study and report on Medicare coverage of services
provided by certain non-physician providers
The provision would require MedPAC to conduct a study to
determine the appropriateness of Medicare coverage of the
services provided by a surgical technologist, marriage
counselor, pastoral care counselor, and licensed professional
counselor of mental health.
Section 436. GAO study and report on the costs of emergency and medical
transportation services
The provision would require the Comptroller General to
conduct a study of the costs of providing emergency and medical
transportation services across the range of acuity levels of
conditions for which such transportation services are provided.
Section 437. GAO studies and reports on Medicare payments
The provision would require the Comptroller General to
conduct a study on the post-payment audit process for
physicians services. The study would include the proper level
of resources HCFA should devote to educating physicians
regarding coding and billing, documentation requirements, and
calculation of overpayments. The Comptroller General would also
be required to conduct a study of the aggregate effects of
regulatory, audit, oversight and paperwork burdens on
physicians and other health care providers participating in
Medicare.
Section 438. MedPAC study on access to outpatient plan management
services
The provision would require MedPAC to conduct a study on
the barriers to coverage and payment for outpatient
interventional pain medicine procedures under Medicare.
TITLE V--PROVISION RELATING TO PARTS A AND B
subtitle a--home health services
Section 501. 1-Year additional delay in application of 15 percent
reduction on payment limits of home health services
The provision would require that the aggregate amount of
Medicare payments to home health agencies in the second year of
the PPS (FY 2002) shall be the aggregate payments in the first
year of the PPS, updated by the market basket index (MBI)
increase minus 1.1 percentage points. The 15 percent reduction
to aggregate PPS amounts, which, under current law, would go
into effect October 1, 2001, would be delayed until October 1,
2002.
The Comptroller General (rather than the Secretary) would
be required to submit, by April 1, 2002, a report analyzing the
need for the 15 percent or other reduction.
If the Secretary determines that updates to the PPS
system for a previous fiscal year (or estimates of such
adjustments for a future fiscal year) did (or are likely to)
result in a change in aggregate payments due to changes in
coding or classification of beneficiaries' service needs that
do not reflect real changes in case mix, effective for home
health episodes concluding on or after October 1, 2001, the
Secretary may adjust PPS amounts to eliminate the effect of
such coding or classification changes.
Section 502. Restoration of full home health market basket update for
home health services for fiscal year 2001
The provision would modify the home health PPS updates.
During the period October 1, 2000, through March 31, 2001, the
rates promulgated in the home health PPS regulations on July 3,
2000, would apply for 60-day episodes of care (or visits)
ending in that period. For the period April 1, 2001, through
September 31, 2001, those rates would be increased by 2.2
percent for 60-day episodes (or visits) ending in that time
period. This increase would be included in determining
subsequent payment amounts.
Section 503. Temporary two-month periodic interim payment
The provision would provide for a one-time payment for
certain home health agencies that were receiving periodic
interim payments under current law. Home health agencies that
were receiving such payments as of September 30, 2000, receive
a one-time payment equal to four times the last 2-week payment
the agency received before implementation of the home health
PPS on October 1, 2000. The amounts would be included in the
agency's last settled cost report before implementation of the
PPS.
Section 504. Use of telehealth in delivery of home health services
The provision would clarify that the telecommunications
provisions should not be construed as preventing a home health
agency from providing a service, for which payment is made
under the prospective payment system, via a telecommunications
system, provided that the services do not substitute for ``in-
person'' home health services ordered by a physician as part of
a plan of care or are not considered a home health visit for
purposes of eligibility or payment.
Section 505. Study on costs to home health agencies of purchasing
nonroutine medical supplies
The provision would require that, not later than August
15, 2001, the Comptroller General shall submit to Congress a
report regarding the variation in prices home health agencies
pay for nonroutine supplies, the volume of supplies used, and
what effect the variations have on the provision of services.
The Secretary would be required to make recommendations on
whether Medicare payment for those supplies should be made
separately from the home health PPS.
Section 506. Treatment of branch offices; GAO study on supervision of
home health care provided in isolated rural areas
The provision would clarify that neither time nor
distance between a home health agency parent office and a
branch office shall be the sole determinant of a home health
agency's branch office status. The Secretary would be
authorized to include forms of technology in determining
``supervision'' for purposes of determining a home health
agency's branch office status.
Not later than January 1, 2002, the Comptroller General
would be required to submit to Congress a report regarding the
adequacy of supervision and quality of home health services
provided by home health agency branch offices and subunits in
isolated rural areas and to make recommendations on whether
national standards for supervision would be appropriate in
assuring quality.
Section 507. Clarification of the homebound benefit
The provision clarifies that the need for adult day care
for a patient's plan of treatment does not preclude appropriate
coverage for home health care for other medical conditions. The
provision also clarifies the ability of homebound beneficiaries
to attend religious services without being disqualified from
receiving home health benefits.
Section 508. Temporary increase for home health services furnished in a
rural area
For home health services furnished in certain rural areas
during the 2-year period beginning April 1, 2001, Medicare
payments are increased by 10%, without regard to budget
neutrality for the overall home health prospective payment
system. This temporary increase would not be included in
determining subsequent payments.
subtitle b--direct graduate medical education
Section 511. Increase in floor for direct graduate medical education
payments
A hospital's approved per resident amount for cost
reporting periods beginning during FY 2002 would not be less
than 85% of the locality adjusted national average per resident
amount.
Section 512. Change in distribution formula for Medicare+Choice related
nursing and allied health education costs
A hospital would receive nursing and allied health
payments for Medicare managed care enrollees based on its per
day cost of allied and nursing health programs and number of
days attributed to Medicare enrollees in comparison to that in
all other hospitals. The provision would be effective for
portions of cost reporting periods occurring on or after
January 1, 2001.
subtitle c--changes in medicare coverage and appeals process
Section 521. Revisions to Medicare appeals process
The provision would modify the Medicare appeals process.
Generally, initial determinations by the Secretary would be
concluded no later than 45 days from the date the Secretary
received a claim for benefits. Any individual dissatisfied with
the initial determination would be entitled to a
redetermination by the carrier or fiscal intermediary would
made the initial determination. Such redetermination would be
required to be completed within 30 days of a beneficiary's
request. Beneficiaries could appeal the outcome of a
redetermination by seeking a reconsideration. Generally, a
request for a reconsideration must be initiated no later than
180 days after the date the individual receives the notice of
an adverse redetermination. In addition, if contested amounts
are greater than $100, an individual would be able to appeal an
adverse reconsideration decision by requesting a hearing by the
Secretary (first for a hearing by an administrative law judge,
then in certain circumstances, for a hearing before the
Department of Appeals Board). If the dispute is not
satisfactorily resolved through this administrative process,
and if contested amounts are greater than $1,000, the
individual would be able to request judicial review of the
Secretary's final decision. Aggregation of claims to meet these
thresholds would be permitted.
An expedited determination would be available for a
beneficiary who receive notice: (1) that a provider plans to
terminate services and a physician certifies that failure to
continue the provisions of the services is likely to place the
beneficiary's health at risk; or (2) that the provider plans to
discharge the beneficiary.
The Secretary would enter into 3-year contracts with at
least 12 qualified independent contractors (QICs) to conduct
reconsiderations. A QIC would promptly notify beneficiaries and
Medicare claims processing contractors of its determinations. A
beneficiary could appeal the decision of a QIC to an ALJ. In
cases where the ALJ decision is not rendered within the 90-day
deadline, the appealing party would be able to request a DAB
hearing.
The Secretary would perform outreach activities to inform
beneficiaries, providers, and suppliers of their appeal rights
and procedures. The Secretary would submit to Congress an
annual report including information on the number of appeals
for the previous year, identifying issues that require
administrative or legislative actions, and including
recommendations for change as necessary. The report would also
contain an analysis of the consistency of the QIC
determinations as well as the cause for any identified
inconsistencies.
Section 522. Revisions to Medicare coverage process
The provision would clarify when and under what
circumstances Medicare coverage policy could be challenged. An
aggrieved party could file a complaint concerning a national
coverage decision. Such complaint would be reviewed by the
Department Appeals Board (DAB) of HHS. The provision would also
permit an aggrieved party to file a complaint concerning a
local coverage determination. In this case, the determination
would be reviewed by an administrative law judge. If
unsatisfied, complainants could subsequently seek review of
such a local policy by the DAB. In both cases, a DAB decision
would constitute final HHS action, and would be subject to
judicial review. The Secretary would be required to implement
DAB decisions and ALJ decisions (in the case of a local
coverage policy) within 30 days. The provision would also
permit an affected party to submit a request to the Secretary
to issue a national coverage or noncoverage determination if
one has not been issued. The Secretary would have 90 days to
respond. HHS would be required to prepare an annual report on
national coverage determinations.
subtitle d--improving access to new technologies
Section 531. Reimbursement improvements for new clinical laboratory
tests and durable medical equipment
The provision would specify that the national limitation
amount for a new clinical laboratory test would equal 100% of
the national median for such test. The Secretary would be
required to establish procedures that permit public
consultation for coding and payment determinations for new
clinical diagnostic laboratory tests and new durable medical
equipment. The Secretary would be required to report to
Congress on specific procedures used to adjust payments for
advanced technologies; the report would include recommendations
for legislative changes needed to assure fair and appropriate
payments.
Section 532. Retention of HCPCS level III codes
The provision would extend the time for the use of local
codes (known as HCPCS level III codes) through December 21,
2003; the Secretary would be required to make the codes
available to the public.
Section 533. Recognition of new medical technologies under Medicare
inpatient hospital PPS
The Secretary would be required to submit a report to
Congress no later than April 1, 2001, on potential methods for
more rapidly incorporating new medical services and
technologies used in the inpatient setting in the clinical
coding system used with respect to payment for inpatient
services. The Secretary would be required to identify the
preferred methods for expediting these coding modifications in
her report, and to implement such method by October 1, 2001.
Additional hospital payments could be made by means of a new
technology group (DRG), an add-on payment, payment adjustment
or other mechanism. However, separate fee schedules for
additional new technology payments would not be permitted. The
Secretary would implement the new mechanism on a budget neutral
basis. The total amount of projected additional payments under
the mechanism would be limited to an amount not greater than
the Secretary's annual estimation of the costs attributable to
the introduction of new technology in the hospital sector as a
whole (as estimated for purposes of the annual hospital update
calculation).
subtitle e--other provisions
Section 541. Increase in reimbursement for bad debt
Effective beginning with cost reports starting in FY2001,
the provision would increase the percentage of the reasonable
costs associated with beneficiaries' bad debt in hospitals that
Medicare would reimburse to 70%.
Section 542. Treatment of certain physician pathology services under
Medicare
The provision would permit independent laboratories,
under a grandfather arrangement to continue, for a 2-year
period (2001-2002), direct billing for the technical component
of pathology services provided to hospital inpatients and
hospital outpatients. The Comptroller General would be required
to conduct a study of the effect of these provisions on
hospitals and laboratories and access of fee-for-service
beneficiaries to the technical component of physician pathology
services. The report would include recommendations on whether
the provisions should continue after the 2-year period for
either (or both) inpatient and outpatient hospital services and
whether the provision should be extended to other hospitals.
Section 543. Extension of advisory opinion authority
The Office of the Inspector General's authority to issue
advisory opinions to outside parties who request guidance on
the applicability of the anti-kickback statute, safe harbor
provisions and other OIG health care fraud and abuse sanctions
would be made permanent.
Section 544. Change in annual MedPAC reporting
The provision would delay the reporting date for the
MedPAC report on issues affecting the Medicare program by 15
days to June 15. The provision would also require record votes
on recommendations contained both in this report and the March
report on payment policies.
Section 545. Development of patient assessment instruments
The provision would require the Secretary to report to
the Congress on the development of standard instruments for the
assessment of the health and functional status of patients and
make recommendations on the use of such standard instruments
for payment purposes.
Section 546. GAO report on impact of the Emergency Medical Treatment
and Active Labor Act (EMTALA) on hospital emergency departments
GAO would be required to evaluate the impact of the
Emergency Medical Treatment and Active Labor Act on hospitals,
emergency physicians, and on-call physicians covering emergency
departments and to submit a report to Congress by May 1, 2001.
Section 547. Clarification of application of temporary payment
increases for 2001
The special increases and adjustments of the acute
hospital payment update, the indirect medical education
adjustment, and the disproportionate share hospital adjustment
that are in effect between April and October 2001 do not apply
to discharges after FY 2001 and are not included in determining
subsequent payments.
Special update payments under the skilled nursing
facility prospective payment system between April and October
2001 would not apply to SNF services furnished after that
period and would not be included when determining payments for
the subsequent period.
Special market basket update payments under the home
health prospective payment system between April and October
2001 would not be included in determining subsequent payments.
Also, temporary payments to certain rural home health agencies
from April 1, 2001, through September 30, 2002, would not be
included in determining subsequent payments.
TITLE VI--PROVISIONS RELATING TO PART C (MEDICARE+CHOICE PROGRAM) AND
OTHER MEDICARE MANAGED CARE PROVISIONS
subtitle a--medicare+choice payment reforms
Section 601. Increase in minimum payment amount
The provision would set the minimum payment amount for
aged enrollees within the 50 states and the District of
Columbia in a Metropolitan Statistical Area with a population
of more than 250,000 at $525 in 2001. For all other areas
within the 50 States and the District of Columbia, the minimum
would be $475. For any area outside the 50 States and the
District of Columbia, the $525 and $475 minimum amounts would
also be applied, except that the 2001 minimum payment amount
could not exceed 120% of the 2000 minimum payment amount. This
increase would go into effect March 1, 2001.
Section 602. Increase in minimum percentage increase
This provision would apply a 3% minimum update in 2001
and return to the current law minimum update of 2% thereafter.
This increase would go into effect March 1, 2001.
Section 603. Phase in of risk adjustment
The current risk adjustment methodology (in which 10% of
payments would be based on risk-adjusted inpatient data built
on the 15 principal inpatient diagnostic cost groups (PIP-DCGs)
and 90% would be adjusted solely using the older demographic
method) would continue through 2003. Beginning in 2004, the
risk adjustment would be based on data from inpatient hospital
and ambulatory settings and the risk adjustment would be phased
in at 30% for 2004, 50% for 2005, 75% for 2006, and 100% for
2007 and subsequent years.
Section 604. Transition to revised Medicare+Choice payment rates
Within 2 weeks after the date of enactment of the Act,
the Secretary must announce revised M+C capitation rates for
2001, due to changes from this Act. Plans that previously
provided notice of their intention to terminate contracts or
reduce their service area for 2001 would have 2 weeks after
announcement of the revised rates to rescind their notice and
submit ACR information. Further, any M+C organization that
would receive higher capitation payments as a result of this
Act must submit revised ACR information within 2 weeks after
announcement of the revised rates. Plans may only reduce
premiums, reduce cost sharing, enhance benefits, or utilize
stabilization funds. Any regulations that limit stabilization
fund amounts would be waived, with respect to ACR submissions
under this section of the bill. Notwithstanding the issuance of
revised rates, M+C organizations would continue to be paid on a
fee-for-service basis for costs associated with new national
coverage determinations that are made mid-year.
Section 605. Revision of payment rates for ESRD patients enrolled in
Medicare+Choice plans
This provision would require that the Secretary increase
the M+C payment rates for enrollees with ESRD. The revised
rates would reflect the demonstration rate (including the risk-
adjustment methodology) of social health maintenance
organizations' ESRD capitation demonstrations. The revised
rates would include adjustments for factors such as renal
treatment modality, age, and underlying cause of the disease.
These revised rates would be effective beginning in January
2002, and the Secretary of HHS would be required to publish the
adjustments in final form by July 1, 2001.
Section 606. Permitting premium reductions as additional benefits under
Medicare+Choice plans
This provision would permit M+C plans to offer reduced
Medicare Part B premiums to their enrollees as part of
providing any required additional benefits or reduced cost-
sharing. An M+C organization could elect a reduction in its M+C
payment up to 125% of the annual Part B premium. However, only
80% of this amount could be used to reduce an enrollee's actual
Part B premium. This would have the effect of returning up to
100% of the beneficiary's Part B premium. The reduction would
apply uniformly to each enrollee of the M+C plan. Plans would
include information about Part B premium reductions as part of
the required information that is provided to enrollees for
comparing plan options. This provision would be effective
beginning in 2003.
Section 607. Full implementation of risk adjustment for congestive
heart failure enrollees for 2001
This provision would fully implement risk adjustment
based on inpatient hospital diagnoses for an individual who had
a qualifying congestive heart failure inpatient diagnosis
between July 1, 1999 and June 30, 2000, if that individual was
enrolled in a coordinated care plan offered on January 1, 2001.
This would apply for only 1 year, beginning on January 1, 2001.
This payment amount would be excluded from the determination of
the budget neutrality factor.
Section 608. Expansion of application of Medicare+Choice new entry
bonus
This provision would expand the application of the new
entry bonus for M+C plans to include areas for which
notification had been provided, as of October 3, 2000, that no
plans would be available January 1, 2001.
Section 609. Report on inclusion of certain costs of the Department of
Veterans Affairs and Military Facility Services in calculating
Medicare+Choice payment rates
The Secretary shall report to Congress by January 1,
2003, on a method to phase-in the costs of military facility
services furnished by the Department of Veterans Affairs or the
Department of Defense to Medicare-eligible beneficiaries in the
calculation of an area's M+C capitation payment. This report
would include, on a county-by-county basis: the actual or
estimated costs of such services to Medicare-eligible
beneficiaries; the change in M+C capitation payment rates if
such costs were included in the calculation of payment rates;
one or more proposals for the implementation of payment
adjustments to M+C plans in counties where the payment rate has
been affected due to failure to account for the cost of such
services; and a system to ensure that when a M+C enrollee
receives covered services through a facility of these
Departments, there is an appropriate payment recovery to the
Medicare program.
Subtitle B--Other Medicare+Choice Reforms
Section 611. Payments of additional amounts for new benefits covered
during a contract term
The provision would require payment adjustments to M+C
plans if a legislative change resulted in significant increased
costs, similar to the current law requirements for adjusting
payments due to significant increased costs resulting from
National Coverage Determination (NCDs). In addition, this
provision would require that cost projections and payment
adjustments be based on actuarial estimates provided by the
Chief Actuary of the Health Care Financing Administration.
Section 612. Restriction on implementation of significant new
regulatory requirements mid-year
The provision would preclude the Secretary from
implementing, other than at the beginning of a calendar year,
regulations that impose new, significant regulatory
requirements on M+C organizations.
Section 613. Timely approval of marketing material that follows model
marketing language
The provision would require the Secretary to make
decisions, within 10 days, approving or modifying marketing
material used by M+C organizations, provided that the
organization uses model language specified by the Secretary.
This provision would apply to marketing material submitted on
or after January 1, 2001.
Section 614. Avoiding duplicative regulation
This provision would further stipulate when Medicare law
preempts State law or regulation from applying to M+C plans, by
specifying that the term benefit requirements includes cost-
sharing requirements. Second, the provision would stipulate
that State laws and regulations affecting marketing materials,
and summaries and schedules of benefits regarding an M+C plan,
would also be preempted by Medicare law.
Section 615. Election of uniform local coverage policy for
Medicare+Choice plan covering multiple localities
An M+C organization offering a plan in an area with more
than one local coverage policy would be able to elect to have
the local coverage policy for the part of the area that is most
beneficial to M+C enrollees (as identified by the Secretary)
apply to all M+C enrollees enrolled in the plan.
Section 616. Eliminating health disparities in Medicare+Choice Program
This provision would expand the M+C quality assurance
programs for M+C plans to include a separate focus on racial
and ethnic minorities. The Secretary would also be required to
report to Congress how the quality assurance programs focus on
racial and ethnic minorities, within 2 years after enactment
and biennially thereafter.
Section 617. Medicare+Choice Program compatibility with employer or
union group health plans
In order to make the M+C program compatible with employer
or union group health plans, this provision would allow the
Secretary to waive or modify requirements that hinder the
design of, offering of, or enrollment in certain M+C plans.
Plans included in the category are M+C plans under contract
between M+C organizations and employers, labor organizations,
or trustees of a fund established by employers and/or labor
organizations.
Section 618. Special Medigap enrollment anti-discrimination provision
for certain beneficiaries
This provision would extend the period for Medigap
enrollment for certain M+C enrollees affected by termination of
coverage. For individuals enrolled in an M+C plan during a 12-
month trial period, their trial period would begin again if
they re-enrolled in another M+C plan because of an involuntary
termination. During this new trial period, they would retain
their rights to enroll in a Medigap policy; however, the total
time for a trial period could not exceed 2 years from the time
they first enrolled in an M+C plan.
Section 619. Restoring effective date of elections and changes of
elections of Medicare+Choice plans
This provision would allow individuals who enroll in an
M+C plan after the 10th day of the month to receive coverage
beginning on the first day of the next calendar month,
effective June 1, 2001.
Section 620. Permitting ESRD beneficiaries to enroll in another
Medicare+Choice plan if the plan in which they are enrolled is
terminated
This provision would permit ESRD beneficiaries to enroll
in another M+C plan if they lost coverage when their plan
terminated its contract or reduced its service area. This
provision would also be retroactive, to include individuals
whose enrollment in an M+C plan was terminated involuntarily on
or after December 31, 1998.
Section 621. Providing Choice for skilled nursing facility services
under the Medicare+Choice Program
Effective for M+C contracts entered into or renewed on or
after the date of enactment, the provision would require an M+C
plan to cover post-hospitalization skilled nursing care through
an enrollee's ``home skilled nursing facility'' if the plan has
a contract with the facility or if the home facility agrees to
accept substantially similar payment under the same terms and
conditions that apply to similarly situated SNFs that are under
contract with the plan. A ``home skilled nursing facility'' is
defined as (a) one in which the enrollee resided at the time of
the hospital admission that triggered eligibility for SNF care
upon discharge, or (b) is the facility that is providing such
services through the continuing care retirement community in
which the enrollee resided at the time of hospital admission,
or (c) is the facility in which the spouse of the enrollee is
residing at the time of the enrollee's hospital discharge. The
beneficiary would be required to receive coverage for SNF care
at the home facility that is no less favorable than he or she
would receive otherwise in another SNF that has a contract with
the plan.
Home skilled nursing facilities are permitted to refuse
to accept Medicare+Choice enrollees or to impose conditions on
their acceptance of such an enrollee.
The provision would require the Medicare Payment Advisory
Commission (MedPAC) to analyze and, within 2 years of
enactment, report to Congress on the effects of this provision
on the scope of benefits, administrative and other costs
incurred by M+C organizations, and the contractual
relationships between those plans and SNFs.
Section 622. Providing for accountability of Medicare+Choice plans
The provision would mandate review of ACR submissions by
the HCFA Chief Actuary with respect to submissions for ACRs
filed on or after May 1, 2001.
Section 623. Increased civil money penalties for Medicare+Choice
organizations that terminate contracts mid-year
The provision would increase to $100,000 (or such higher
level as the Secretary of Health and Human Services) the
maximum civil money penalty that could be imposed for a
Medicare+Choice organization that terminates its
Medicare+Choice contract, other than at an appropriate time
after providing appropriate notice.
SUBTITLE C--OTHER MANAGED CARE REFORMS
Section 631. 1-Year extension of social health maintenance organization
(SHMO) demonstration project
The provision would extend SHMO waivers until 30 months
after the Secretary submits a report with a plan for
integration and transition of SHMOs into an option under the
M+C program. This 30-month extension would supersede the 18-
month extension in BBRA 99.
Section 632. Revised terms and conditions for extension of Medicare
community nursing organization (CNO) demonstration project
Effective as if enacted with BBRA99, the provision would
eliminate the requirement that CNO capitated payments be
reduced to ensure budget neutrality. Through December 2001, the
projects would operate under the same terms and conditions
applicable during 1999, but with modification to the capitation
rates. From October 1, 2000, through December 31, 2000, the
capitation rates would be adjusted for inflation since 1999 and
for changes in service packages, but reduced by 10 percent for
in projects in Arizona, Minnesota, and Illinois and by 15
percent in New York. In 2001, the rates would be determined by
actuarially adjusting the rates in the prior period for
inflation, utilization, and changes to the service package.
Adjustments would be made to case management fees for certain
frail enrollees, and requirements would be imposed to create
greater uniformity in clinical features among participating
sites and to improve quality and enrollee satisfaction.
By July 1, 2001, the Secretary would be required to
submit to the House Committees on Ways and Means and Commerce
and the Senate Committee on Finance a report evaluating the
projects for the period July 1997 through December 1999 and for
the extension period after September 30, 2000. A final report
would be required by July 1, 2002. The provision would require
certain methods to be used to compare spending per beneficiary
under the projects.
Section 633. Extension of Medicare municipal health services
demonstration projects
The provision would extend the Medicare municipal health
services demonstration projects for 2 additional years, through
December 31, 2004.
Section 634. Service area expansion for Medicare cost contracts during
transition period
This provision would allow service area expansion for
Medicare cost contracts, if the request was submitted to the
Secretary before September 1, 2003.
TITLE VII--MEDICAID
Section 701. DSH payments
(a) Modifications to DSH allotments
For FY2001, the provision would set each state's DSH
allotment equal to its allotment for FY2000 increased by the
percentage change in the consumer price index for that year,
subject to a ceiling that would be equal to 12% of that state's
total medical assistance payments in that year.
For FY2002, the provision would set each state's DSH
allotment equal to its allotment for 2001 as determined above,
increased by the percentage change in the consumer price index
for FY2001, subject to a ceiling equal to 12% of that state's
total medical assistance payments in that year.
For extremely low DSH states, states whose FY1999 federal
and state DSH expenditures (as reported to HCFA on August 31,
2000) are greater than zero but less than one percent of the
state's total medical assistance expenditures during that
fiscal year, the DSH allotments for FY2001 would be equal to 1
percent of the state's total amount of expenditures under their
plan for such assistance during that fiscal year. For
subsequent fiscal years, the allotments for extremely low DSH
states would be equal to their allotment for the previous year,
increased by the percentage change in the consumer price index
for the previous year, subject to a ceiling of 12% of that
state's total medical assistance payments in that year.
Effective on the date that the final regulation for
Medicaid upper payment limits is published in the Federal
Register.
(b) Assuring identification of Medicaid managed care
patients
Effective for Medicaid managed care contracts in effect
on January 1, 2000, the provision would clarify that Medicaid
enrollees of managed care organizations and primary care case
management organizations are to be included for the purposes of
calculating the Medicaid impatient utilization rate and the
low-income utilization rate. Also effective January 1, 2001,
states must include in their MCO contracts information that
allows the state to determine which hospital services are
provided to Medicaid beneficiaries through managed care, and
would also require states to include a sponsorship code for the
managed care entity on the Medicaid beneficiary's
identification card.
(c) Application of Medicaid DSH transition rule to public
hospitals in all states
The provision would revise BBA97, as modified by BBRA 99,
so that the 175% hospital-specific DSH limit would apply to
qualifying public hospitals in all states. (The limit currently
applies only to certain public hospitals in California.) The
limit, allowing DSH payments of up to 175% of each hospital's
cost of unreimbursed care, would apply for two state fiscal
years beginning on the first day of the state fiscal year that
begins after September 30, 2002, and ends on the last day of
the succeeding state fiscal year. Hospitals that would qualify
for the higher hospital-specific limit would be those owned or
operated by a state and meet the minimum federal requirements
for disproportionate share hospitals. The permanent ceiling for
California would not be affected.
For states operating under waivers approved under section
1115 of the Social Security Act, increase payments for public
hospitals under this provision would be included in the
baseline expenditure limit for the purposes of determining
budget neutrality.
(d) Assistance for certain public hospitals
The provision would provide additional funds for certain
public hospitals that are: owned or operated by a state (or by
an instrumentality or unit of government within a state); are
not receiving DSH payments as of October 1, 2000; and have a
lot-income utilization rate in excess of 65% as of the same
date. Funds provided under this section to states with eligible
hospitals are in addition to DSH allotments. The total
assistance under this section for all states cannot exceed the
following amounts: $15 million for FY2002; $176 million for
2003; $269 million for 2004; $330 million for 2005 and for FY
2006 and each fiscal year thereunder, $375 million.
(e) DSH payment accountability standards
The provision would require the Secretary to implement
accountability standards to ensure that DSH payments are used
to reimburse States and hospitals that are eligible for such
payments and are otherwise in accordance with Medicaid
statutory requirements.
Section 702. New prospective payment system for Federally-qualified
health centers and rural health clinics
The provision would create a new Medicaid prospective
payment system for federally qualified health centers (FQHCs)
and rural health centers (RHCs) beginning in January of FY2001.
Existing FQHCs and RHCs would be paid per visit payments equal
to 100% of the average costs incurred during 1999 and 2000
adjusted to take into account any increase or decrease in the
scope of services furnished. For entities first qualifying as
FQHCs or RHCs after 2000, the year visit payments would begin
in the first year that the center or clinic attains
qualification and would be based on 100% of the costs incurred
during that year based on the rates established for similar
centers or clinics with similar caseloads in the same or
adjacent geographic area. In the absence of such similar
centers or clinics, the methodology would be based on that used
for developing rates for established FQHCs or RHCs or such
methodology or reasonable specifications as established by the
Secretary. For each fiscal year thereafter, per visit payments
for all FQHCs and RHCs would be equal to amounts for the
preceding fiscal year increased by the percentage increase in
the Medicare Economic Index applicable to primary care services
for that fiscal year, and adjusted for any increase or decrease
in the scope of Services furnished during the fiscal year. In
managed care contracts, States must make supplemental payments
to the center or clinic that would be equal to the difference
between contracted amounts and the cost-based amounts. Those
payments would be paid on a schedule mutually agreed to by the
State and the FQHC or RHC. Alternative payment methods would be
permitted only when payments are at least equal to amounts
otherwise provided.
The provision would also direct the Comptroller General
to provide for a study on how to rebase or refine cost payment
methods for the services of FQHCs and RHCs. The report would be
due to Congress no later than 4 years after the date of
enactment.
Section 703. Streamlined approval of continued state-wide 1115 Medicaid
waivers
The provision would define the process for submitting
requests for and receiving extensions of Medicaid demonstration
waivers authorized under Section 1115 of the Social Security
Act that have already received initial 3-year extensions. It
would require each state requesting such an extension to submit
an application at least 120 days prior to the expiration date
of the existing extension to submit an application at least 120
days prior to the expiration date of the existing waiver. No
later than 45 days after the Secretary receives such
application, the Secretary would be required to notify the
State if she intends to review the existing terms and
conditions of the project and would inform the State of
proposed changes in the terms and conditions of the waiver. If
the Secretary fails to provide such notification, the request
would be deemed approved. During the 30-day period beginning
after the Secretary provides the proposed terms and conditions
to the state, those terms and conditions would be negotiated.
No later than 120 days after the date that the request for
extension was submitted (or such later date as agreed to by the
chief executive officer of the State) the Secretary would be
required to approve the application subject to the agreed upon
terms and conditions or, in the absence of an agreement, such
terms and conditions that are determined by the Secretary to be
reasonably consistent with the overall objective of the waiver,
or disapprove the application. If the waiver is not approved or
disapproved during this period, the request would be deemed
approved in the terms and conditions as have been agreed to (if
any) by the Secretary and the State. Approvals would be for
periods not to exceed 3 year and would be subject to the final
reporting and evaluation requirements in current law.
Section 704. Medicaid county-organized health systems
The provision would allow the current exemption for
certain Health Insuring Organizations (HIOs) from certain
Medicaid HMO contracting requirements to apply as long as no
more than 14% of all Medicaid beneficiaries in the state are
enrolled in those HIOs. This provision would be effective as if
included in the enactment of the Consolidated Omnibus Budget
Reconciliation Act of 1985.
Section 705. Deadline for issuance of final regulation relating to
Medicaid upper payment limits
The provision would require the Secretary to issue final
regulations governing upper payment limits (UPLs) for inpatient
and outpatient services provided by certain types of facilities
no later than December 31, 2000. It would also require that the
final regulation establish a separate UPL for non-state-owned
or operated government facilities based on a proposed rule
announced in October, 2000.
The proposed rule would specify two transition periods
for states with payment arrangements that are noncompliant, one
for states with such arrangements effective on or after October
1, 1999 and the other for those states with arrangements that
were effective before that date. The starting point of the
phase-out of existing payment arrangements, the percentage
reduction in payments each year, and the overall length of time
permitted for full phase-out would vary for the two transition
periods.
The provision also requires the final regulation to
stipulate a third set of rules governing the transition period
for certain states. This additional set of rules would apply to
states with payment arrangements approved or in effect on or
before October 1, 1992, or under which claims for federal
matching were paid on or before that date, and for which such
payments exceed the UPLs established under the final
regulation. For these states, a 6-year transition period would
apply, beginning with the period that begins on the first state
fiscal year that starts after September 30, 2002 and ends on
September 30, 2008. For each year during the transition period,
applicable states must reduce excess payments by 15%. Full
compliance with final regulations is required by October 1,
2008.
Section 706. Alaska FMAP
The provision would change the formula for calculating
the state percentage and thus the federal matching percentage
for Alaska for fiscal years 2001 through 2005. The state
percentage for Alaska would be calculated by using an adjusted
per capita income calculation instead of the state-wide average
per capita income calculation generally used. The adjusted per
capita income for Alaska would be calculated as the three year
average per capita income for the state divided by 1.05.
Section 707. 1-Year extension of welfare-to-work transition
This provision extends by 1 year the sunset on
transitional medical assistance for families no longer eligible
for welfare from September 30, 2001 to September 30, 2002.
Section 708. Additional entities qualified to determine Medicaid
presumptive eligibility for low-income children
Under Medicaid presumptive eligibility rules, States are
allowed to temporarily enroll children whose family income
appears to be below Medicaid income standards, until a final
formal determination of eligibility is made.
The provision adds several entities to the list of those
qualified to make Medicaid presumptive eligibility
determinations for children. These new entities include
agencies that determine eligibility for Medicaid or the State
Children's Health Insurance program; or certain elementary and
secondary schools, including those operated or supported by the
Bureau of Indian Affairs.
Section 709. Development of uniform QMB/SLMB application form
This provision requires the secretary of Health and Human
Services to develop a simplified national application form for
States, at their option, to use for individuals who apply for
medical assistance for medicare cost-sharing under the medicaid
program.
Section 710. Technical corrections
This provision makes technical medicaid amendments that
exempt from certain upper income limitations individuals made
eligible for medical assistance, at a State's option, under the
Foster Care Independence Act of 1999 and under the Breast and
Cervical Cancer Prevention and Treatment Act of 2000.
TITLE VIII--STATE CHILDREN'S HEALTH INSURANCE PROGRAM
Section 801. Special rule for redistribution and availability of unused
fiscal year 1998 and 1999 SCHIP allotments
The provision would establish a new method for
distributing unspent FY1998 and FY1999 allotments. States that
use all their SCHIP allotments (for each of those years) would
receive an amount equal to estimated spending in excess of
their original exhausted allotment. Each territory that spends
its original allotment would receive an amount that bears the
same ratio to 1.05% of the total amount available for
redistribution as the ratio of its original allotment to the
total allotment for all territories.
States that do not use all their SCHIP allotment would
receive an amount equal to the total amount of unspent funds,
less amounts distributed to states that fully exhausted their
original allotments, multiplied by the ratio of a state's
unspent original allotment to the total amount of unspent
funds. States may use up to 10% of the retained FY1998 funds
for outreach activities.
To calculate the amounts available for redistribution in
each formula described above, the Secretary would use amounts
reported by states not later than December 15, 2000 for the
FY1998 redistribution and November 30, 2001 for the FY1999
redistribution as reported on HCFA Form 64 or HCFA Form 21, as
approved by the Secretary. Redistributed funds would be
available through the end of FY2002.
Section 802. Authority to pay Medicaid expansion SCHIP costs from title
XXI appropriation
This provision provides a technical accounting
clarification requested by the Health Care Financing
Administration. It would authorize the payment of the costs of
SCHIP Medicaid expansions and costs of benefits provided during
periods of presumptive eligibility from the SCHIP appropriation
rather than from the Medicaid appropriation, with a subsequent
offset. In addition, the provision would codify proposed rules
regarding the order of payments for benefits and administrative
costs from state-specific SCHIP allotments.
Section 803. Application of Medicaid child presumptive eligibility
provisions
Under Medicaid presumptive eligibility rules, states are
allowed to temporarily enroll children whose family income
appears to be below Medicaid income standards, until a final
formal determination of eligibility is made. There is no
express provision for presumptive eligibility under separate
(non-Medicaid) SCHIP programs. However, the Secretary of HHS
permits states to develop, for separate (non-Medicaid) SCHIP
programs, procedures that are similar to those permitted under
Medicaid.
The provision clarifies states' authority to conduct
presumptive eligibility determinations, as defined in Medicaid
law, under separate (non-Medicaid) SCHIP programs.
TITLE IX--OTHER PROVISIONS
SUBTITLE A--PACE PROGRAM
Section 901. Extension of transition for current waivers
The provision would permit the Secretary to continue to
operate the Program of All-Inclusive Care for the Elderly
(PACE) under waivers for a period of 36 months (rather than 24
months), and States may do so for 4 years (rather than 3
years). OBRA 86 required the Secretary to grant waivers of
certain Medicare and Medicaid requirements to not more than 10
public or non-profit private community-based organizations to
provide health and long-term care services on a capitated basis
to frail elderly persons at risk of institutionalization. BBA
97 established PACE as a permanent provider under Medicare and
as a special benefit under Medicaid.
Section 902. Continuing of certain operating arrangements permitted
If prior to becoming a permanent component of Medicare, a
PACE demonstration project had contractual or other operating
arrangements that are not recognized under permanent program
regulations, the provision would require the Secretary, in
consultation with the state agency, to permit it to continue
under such arrangements as long as it is consistent with the
objectives of the PACE program.
Section 903. Flexibility in exercising waiver authority
The provision would enable the Secretary to exercise
authority to modify or waive Medicare or Medicaid requirements
to respond to the needs of PACE programs related to employment
and the use of community care physicians. The Secretary must
approve requests for such waivers within 90 days of the date
the request for waiver is received.
subtitle b--outreach to eligible low-income medicare beneficiaries
Section 911. Outreach on availability of Medicare cost-sharing
assistance to eligible low-income Medicare beneficiaries
The provision would require the Commissioner of the
Social Security Administration to conduct outreach efforts to
identify individuals who may be eligible for Medicaid payment
of Medicare cost sharing and to notify these persons of the
availability of such assistance. The Commissioner would also be
required to furnish, at least annually, a list of such
individuals who reside in each state to that state's agency
responsible for administering the Medicaid program as well as
to any other appropriate state agency. The list should include
the name and address, and whether such individuals have
experienced reductions in Social Security benefits. The
provision would also require the General Accounting Office to
conduct a study of the impact of the outreach activities of the
Commissioner to submit to Congress no later than 18 months
after such outreach begins. The provision would be effective
one year after date of enactment.
subtitle C--maternal and child health block grant
Section 921. Increase in authorization of appropriations for the
maternal and child health services block grant
The provision would increase the authorization of
appropriations for the Maternal and Child Health Services Block
Grant under Title V from $705,000,000 to $850,000,000 for
fiscal year 2001 and each fiscal year thereafter.
subtitle d--diabetes
Section 931. Increase in appropriations for special diabetes programs
for type I diabetes and Indians
The provision would extend for 1 year, to FY2003, the
authority for grants to be made for both the Special Diabetes
Program for Type I Diabetes and for the Special Diabetes
Programs for Indians under the Public Health Service Act. The
provision would also expand funding available for these
programs. For each grant program, the provision would increase
total funding to $100 million each for FY2001, FY2002 and
FY2003. For FY2001 and FY2002, $30 million of the $100 million
for each program would be transferred from SCHIP as set forth
in the Balanced Budget Act of 1997; the remaining $70 million
would be drawn from the Treasury out of funds not otherwise
appropriated. In FY2003, the entire $100 million would be drawn
from the Treasury out of funds not otherwise appropriated. In
addition, the provision would extend the due date on final
evaluation reports for these two grant programs from January 1,
2002 to January 1, 2003.
Section 932. Appropriations for Ricky Ray Hemophilia Relief Fund
This provision provides for a direct appropriation of
$475 million for FY2001. Funds would be available until
expended.
subtitle E--information on nursing facility staffing
Section 941. Posting of information on nursing facility staffing
The provision would require medicare skilled nursing
facilities and medicaid nursing facilities to post nurse
staffing information daily for each shift in the facility,
effective January 1, 2003.
subtitle F--adjustment of multiemployer plan benefits guaranteed
Section 951. Adjustment of multiemployer plan benefits guaranteed
The provision adjusts the level of multiemployer pension
plan benefits guaranteed under title IV of ERISA.
COMMUNITY RENEWAL TAX RELIEF ACT OF 2000
The conference agreement would enact the provisions of
H.R. 5662, as introduced on December 14, 2000. The text of that
bill follows:
A BILL To amend the Internal Revenue Code of 1986 to provide for
community revitalization and a 2-year extension of medical saving
accounts, and for other purposes.
Be it enacted by the Senate and House of Representatives
of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.
(a) Short Title.--This Act may be cited as the ``Community
Renewal Tax Relief Act of 2000''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a section
or other provision, the reference shall be considered to be
made to a section or other provision of the Internal Revenue
Code of 1986.
(c) Table of Contents.--
TITLE I--COMMUNITY RENEWAL AND NEW MARKETS
Subtitle A--Tax Incentives for Renewal Communities
Sec. 101. Designation of and tax incentives for renewal communities.
Sec. 102. Work opportunity credit for hiring youth residing in renewal
communities.
Subtitle B--Extension and Expansion of Empowerment Zone Incentives
Sec. 111. Authority to designate 9 additional empowerment zones.
Sec. 112. Extension of empowerment zone treatment through 2009.
Sec. 113. 20 percent employment credit for all empowerment zones.
Sec. 114. Increased expensing under section 179.
Sec. 115. Higher limits on tax-exempt empowerment zone facility bonds.
Sec. 116. Nonrecognition of gain on rollover of empowerment zone
investments.
Sec. 117. Increased exclusion of gain on sale of empowerment zone stock.
Subtitle C--New Markets Tax Credit
Sec. 121. New markets tax credit.
Subtitle D--Improvements in Low-Income Housing Credit
Sec. 131. Modification of State ceiling on low-income housing credit.
Sec. 132. Modification of criteria for allocating housing credits among
projects.
Sec. 133. Additional responsibilities of housing credit agencies.
Sec. 134. Modifications to rules relating to basis of building which is
eligible for credit.
Sec. 135. Other modifications.
Sec. 136. Carryforward rules.
Sec. 137. Effective date.
Subtitle E--Other Community Renewal and New Markets Assistance
Part I--Provisions relating to housing and substance abuse prevention
and treatment
Sec. 141. Transfer of unoccupied and substandard HUD-held housing to
local governments and community development corporations.
Sec. 142. Transfer of HUD assets in revitalization areas.
Sec. 143. Risk-sharing demonstration.
Sec. 144. Prevention and treatment of substance abuse; services provided
through religious organizations.
Part II--Advisory Council on Community Renewal
Sec. 151. Short title.
Sec. 152. Establishment.
Sec. 153. Duties of Advisory Council.
Sec. 154. Membership.
Sec. 155. Powers of Advisory Council.
Sec. 156. Reports.
Sec. 157. Termination.
Sec. 158. Applicability of Federal Advisory Committee Act.
Sec. 159. Resources.
Sec. 160. Effective date.
Subtitle F--Other Provisions
Sec. 161. Acceleration of phase-in of increase in volume cap on private
activity bonds.
Sec. 162. Modifications to expensing of environmental remediation costs.
Sec. 163. Extension of DC homebuyer tax credit.
Sec. 164. Extension of DC Zone through 2003.
Sec. 165. Extension of enhanced deduction for corporate donations of
computer technology.
Sec. 166. Treatment of Indian tribal governments under Federal
Unemployment Tax Act.
TITLE II--2-YEAR EXTENSION OF AVAILABILITY OF MEDICAL SAVINGS ACCOUNTS
Sec. 201. 2-year extension of availability of medical savings accounts.
Sec. 202. Medical savings accounts renamed as Archer MSAs.
TITLE III--ADMINISTRATIVE AND TECHNICAL PROVISIONS
Subtitle A--Administrative Provisions
Sec. 301. Exemption of certain reporting requirements.
Sec. 302. Extension of deadlines for IRS compliance with certain notice
requirements.
Sec. 303. Extension of authority for undercover operations.
Sec. 304. Confidentiality of certain documents relating to closing and
similar agreements and to agreements with foreign governments.
Sec. 305. Increase in threshold for Joint Committee reports on refunds
and credits.
Sec. 306. Treatment of missing children with respect to certain tax
benefits.
Sec. 307. Amendments to statutes referencing yield on 52-week Treasury
bills.
Sec. 308. Adjustments for Consumer Price Index error.
Sec. 309. Prevention of duplication of loss through assumption of
liabilities giving rise to a deduction.
Sec. 310. Disclosure of certain information to Congressional Budget
Office.
Subtitle B--Technical Corrections
Sec. 311. Amendments related to Ticket to Work and Work Incentives
Improvement Act of 1999.
Sec. 312. Amendments related to Tax and Trade Relief Extension Act of
1998.
Sec. 313. Amendments related to Internal Revenue Service Restructuring
and Reform Act of 1998.
Sec. 314. Amendments related to Taxpayer Relief Act of 1997.
Sec. 315. Amendments related to Balanced Budget Act of 1997.
Sec. 316. Amendments related to Small Business Job Protection Act of
1996.
Sec. 317. Amendment related to Revenue Reconciliation Act of 1990.
Sec. 318. Other technical corrections.
Sec. 319. Clerical changes.
TITLE IV--TAX TREATMENT OF SECURITIES FUTURES CONTRACTS
Sec. 401. Tax treatment of securities futures contracts.
TITLE I--COMMUNITY RENEWAL AND NEW MARKETS
Subtitle A--Tax Incentives for Renewal Communities
SEC. 101. DESIGNATION OF AND TAX INCENTIVES FOR RENEWAL COMMUNITIES.
(a) In General.--Chapter 1 is amended by adding at the end
the following new subchapter:
``Subchapter X--Renewal Communities
``Part I. Designation.
``Part II. Renewal community capital gain; renewal community
business.
``Part III. Additional incentives.
``PART I--DESIGNATION
``Sec. 1400E. Designation of renewal communities.
``SEC. 1400E. DESIGNATION OF RENEWAL COMMUNITIES.
``(a) Designation.--
``(1) Definitions.--For purposes of this title, the
term `renewal community' means any area--
``(A) which is nominated by 1 or more local
governments and the State or States in which it
is located for designation as a renewal
community (hereafter in this section referred
to as a `nominated area'), and
``(B) which the Secretary of Housing and
Urban Development designates as a renewal
community, after consultation with--
``(i) the Secretaries of
Agriculture, Commerce, Labor, and the
Treasury; the Director of the Office of
Management and Budget, and the
Administrator of the Small Business
Administration, and
``(ii) in the case of an area on an
Indian reservation, the Secretary of
the Interior.
``(2) Number of designations.--
``(A) In general.--Not more than 40
nominated areas may be designated as renewal
communities.
``(B) Minimum designation in rural areas.--
Of the areas designated under paragraph (1), at
least 12 must be areas--
``(i) which are within a local
government jurisdiction or
jurisdictions with a population of less
than 50,000,
``(ii) which are outside of a
metropolitan statistical area (within
the meaning of section 143(k)(2)(B)),
or
``(iii) which are determined by the
Secretary of Housing and Urban
Development, after consultation with
the Secretary of Commerce, to be rural
areas.
``(3) Areas designated based on degree of poverty,
etc.--
``(A) In general.--Except as otherwise
provided in this section, the nominated areas
designated as renewal communities under this
subsection shall be those nominated areas with
the highest average ranking with respect to the
criteria described in subparagraphs (B), (C),
and (D) of subsection (c)(3). For purposes of
the preceding sentence, an area shall be ranked
within each such criterion on the basis of the
amount by which the area exceeds such
criterion, with the area which exceeds such
criterion by the greatest amount given the
highest ranking.
``(B) Exception where inadequate course of
action, etc.--An area shall not be designated
under subparagraph (A) if the Secretary of
Housing and Urban Development determines that
the course of action described in subsection
(d)(2) with respect to such area is inadequate.
``(C) Preference for enterprise communities
and empowerment zones.--With respect to the
first 20 designations made under this section,
a preference shall be provided to those
nominated areas which are enterprise
communities or empowerment zones (and are
otherwise eligible for designation under this
section).
``(4) Limitation on designations.--
``(A) Publication of regulations.--The
Secretary of Housing and Urban Development
shall prescribe by regulation no later than 4
months after the date of the enactment of this
section, after consultation with the officials
described in paragraph (1)(B)--
``(i) the procedures for nominating
an area under paragraph (1)(A),
``(ii) the parameters relating to
the size and population characteristics
of a renewal community, and
``(iii) the manner in which
nominated areas will be evaluated based
on the criteria specified in subsection
(d).
``(B) Time limitations.--The Secretary of
Housing and Urban Development may designate
nominated areas as renewal communities only
during the period beginning on the first day of
the first month following the month in which
the regulations described in subparagraph (A)
are prescribed and ending on December 31, 2001.
``(C) Procedural rules.--The Secretary of
Housing and Urban Development shall not make
any designation of a nominated area as a
renewal community under paragraph (2) unless--
``(i) the local governments and the
States in which the nominated area is
located have the authority--
``(I) to nominate such area
for designation as a renewal
community,
``(II) to make the State
and local commitments described
in subsection (d), and
``(III) to provide
assurances satisfactory to the
Secretary of Housing and Urban
Development that such
commitments will be fulfilled,
``(ii) a nomination regarding such
area is submitted in such a manner and
in such form, and contains such
information, as the Secretary of
Housing and Urban Development shall by
regulation prescribe, and
``(iii) the Secretary of Housing
and Urban Development determines that
any information furnished is reasonably
accurate.
``(5) Nomination process for indian reservations.--
For purposes of this subchapter, in the case of a
nominated area on an Indian reservation, the
reservation governing body (as determined by the
Secretary of the Interior) shall be treated as being
both the State and local governments with respect to
such area.
``(b) Period for Which Designation Is in Effect.--
``(1) In general.--Any designation of an area as a
renewal community shall remain in effect during the
period beginning on January 1, 2002, and ending on the
earliest of--
``(A) December 31, 2009,
``(B) the termination date designated by
the State and local governments in their
nomination, or
``(C) the date the Secretary of Housing and
Urban Development revokes such designation.
``(2) Revocation of designation.--The Secretary of
Housing and Urban Development may revoke the
designation under this section of an area if such
Secretary determines that the local government or the
State in which the area is located--
``(A) has modified the boundaries of the
area, or
``(B) is not complying substantially with,
or fails to make progress in achieving, the
State or local commitments, respectively,
described in subsection (d).
``(3) Earlier termination of certain benefits if
earlier termination of designation.--If the designation
of an area as a renewal community terminates before
December 31, 2009, the day after the date of such
termination shall be substituted for `January 1, 2010'
each place it appears in sections 1400F and 1400J with
respect to such area.
``(c) Area and Eligibility Requirements.--
``(1) In general.--The Secretary of Housing and
Urban Development may designate a nominated area as a
renewal community under subsection (a) only if the area
meets the requirements of paragraphs (2) and (3) of
this subsection.
``(2) Area requirements.--A nominated area meets
the requirements of this paragraph if--
``(A) the area is within the jurisdiction
of one or more local governments,
``(B) the boundary of the area is
continuous, and
``(C) the area--
``(i) has a population of not more
than 200,000 and at least--
``(I) 4,000 if any portion
of such area (other than a
rural area described in
subsection (a)(2)(B)(i)) is
located within a metropolitan
statistical area (within the
meaning of section
143(k)(2)(B)) which has a
population of 50,000 or
greater, or
``(II) 1,000 in any other
case, or
``(ii) is entirely within an Indian
reservation (as determined by the
Secretary of the Interior).
``(3) Eligibility requirements.--A nominated area
meets the requirements of this paragraph if the State
and the local governments in which it is located
certify in writing (and the Secretary of Housing and
Urban Development, after such review of supporting data
as he deems appropriate, accepts such certification)
that--
``(A) the area is one of pervasive poverty,
unemployment, and general distress,
``(B) the unemployment rate in the area, as
determined by the most recent available data,
was at least 1\1/2\ times the national
unemployment rate for the period to which such
data relate,
``(C) the poverty rate for each population
census tract within the nominated area is at
least 20 percent, and
``(D) in the case of an urban area, at
least 70 percent of the households living in
the area have incomes below 80 percent of the
median income of households within the
jurisdiction of the local government
(determined in the same manner as under section
119(b)(2) of the Housing and Community
Development Act of 1974).
``(4) Consideration of other factors.--The
Secretary of Housing and Urban Development, in
selecting any nominated area for designation as a
renewal community under this section--
``(A) shall take into account--
``(i) the extent to which such area
has a high incidence of crime, or
``(ii) if such area has census
tracts identified in the May 12, 1998,
report of the General Accounting Office
regarding the identification of
economically distressed areas, and
``(B) with respect to 1 of the areas to be
designated under subsection (a)(2)(B), may, in
lieu of any criteria described in paragraph
(3), take into account the existence of
outmigration from the area.
``(d) Required State and Local Commitments.--
``(1) In general.--The Secretary of Housing and
Urban Development may designate any nominated area as a
renewal community under subsection (a) only if--
``(A) the local government and the State in
which the area is located agree in writing
that, during any period during which the area
is a renewal community, such governments will
follow a specified course of action which meets
the requirements of paragraph (2) and is
designed to reduce the various burdens borne by
employers or employees in such area, and
``(B) the economic growth promotion
requirements of paragraph (3) are met.
``(2) Course of action.--
``(A) In general.--A course of action meets
the requirements of this paragraph if such
course of action is a written document, signed
by a State (or local government) and
neighborhood organizations, which evidences a
partnership between such State or government
and community-based organizations and which
commits each signatory to specific and
measurable goals, actions, and timetables. Such
course of action shall include at least 4 of
the following:
``(i) A reduction of tax rates or
fees applying within the renewal
community.
``(ii) An increase in the level of
efficiency of local services within the
renewal community.
``(iii) Crime reduction strategies,
such as crime prevention (including the
provision of crime prevention services
by nongovernmental entities).
``(iv) Actions to reduce, remove,
simplify, or streamline governmental
requirements applying within the
renewal community.
``(v) Involvement in the program by
private entities, organizations,
neighborhood organizations, and
community groups, particularly those in
the renewal community, including a
commitment from such private entities
to provide jobs and job training for,
and technical, financial, or other
assistance to, employers, employees,
and residents from the renewal
community.
``(vi) The gift (or sale at below
fair market value) of surplus real
property (such as land, homes, and
commercial or industrial structures) in
the renewal community to neighborhood
organizations, community development
corporations, or private companies.
``(B) Recognition of past efforts.--For
purposes of this section, in evaluating the
course of action agreed to by any State or
local government, the Secretary of Housing and
Urban Development shall take into account the
past efforts of such State or local government
in reducing the various burdens borne by
employers and employees in the area involved.
``(3) Economic growth promotion requirements.--The
economic growth promotion requirements of this
paragraph are met with respect to a nominated area if
the local government and the State in which such area
is located certify in writing that such government and
State (respectively) have repealed or reduced, will not
enforce, or will reduce within the nominated area at
least 4 of the following:
``(A) Licensing requirements for
occupations that do not ordinarily require a
professional degree.
``(B) Zoning restrictions on home-based
businesses which do not create a public
nuisance.
``(C) Permit requirements for street
vendors who do not create a public nuisance.
``(D) Zoning or other restrictions that
impede the formation of schools or child care
centers.
``(E) Franchises or other restrictions on
competition for businesses providing public
services, including taxicabs, jitneys, cable
television, or trash hauling.
This paragraph shall not apply to the extent that such
regulation of businesses and occupations is necessary
for and well-tailored to the protection of health and
safety.
``(e) Coordination With Treatment of Empowerment Zones and
Enterprise Communities.--For purposes of this title, the
designation under section 1391 of any area as an empowerment
zone or enterprise community shall cease to be in effect as of
the date that the designation of any portion of such area as a
renewal community takes effect.
``(f) Definitions and Special Rules.--For purposes of this
subchapter--
``(1) Governments.--If more than one government
seeks to nominate an area as a renewal community, any
reference to, or requirement of, this section shall
apply to all such governments.
``(2) Local government.--The term `local
government' means--
``(A) any county, city, town, township,
parish, village, or other general purpose
political subdivision of a State, and
``(B) any combination of political
subdivisions described in subparagraph (A)
recognized by the Secretary of Housing and
Urban Development.
``(3) Application of rules relating to census
tracts.--The rules of section 1392(b)(4) shall apply.
``(4) Census data.--Population and poverty rate
shall be determined by using 1990 census data.
``PART II--RENEWAL COMMUNITY CAPITAL GAIN; RENEWAL COMMUNITY BUSINESS
``Sec. 1400F. Renewal community capital gain.
``Sec. 1400G. Renewal community business defined.
``SEC. 1400F. RENEWAL COMMUNITY CAPITAL GAIN.
``(a) General Rule.--Gross income does not include any
qualified capital gain from the sale or exchange of a qualified
community asset held for more than 5 years.
``(b) Qualified Community Asset.--For purposes of this
section--
``(1) In general.--The term `qualified community
asset' means--
``(A) any qualified community stock,
``(B) any qualified community partnership
interest, and
``(C) any qualified community business
property.
``(2) Qualified community stock.--
``(A) In general.--Except as provided in
subparagraph (B), the term `qualified community
stock' means any stock in a domestic
corporation if--
``(i) such stock is acquired by the
taxpayer after December 31, 2001, and
before January 1, 2010, at its original
issue (directly or through an
underwriter) from the corporation
solely in exchange for cash,
``(ii) as of the time such stock
was issued, such corporation was a
renewal community business (or, in the
case of a new corporation, such
corporation was being organized for
purposes of being a renewal community
business), and
``(iii) during substantially all of
the taxpayer's holding period for such
stock, such corporation qualified as a
renewal community business.
``(B) Redemptions.--A rule similar to the
rule of section 1202(c)(3) shall apply for
purposes of this paragraph.
``(3) Qualified community partnership interest.--
The term `qualified community partnership interest'
means any capital or profits interest in a domestic
partnership if--
``(A) such interest is acquired by the
taxpayer after December 31, 2001, and before
January 1, 2010, from the partnership solely in
exchange for cash,
``(B) as of the time such interest was
acquired, such partnership was a renewal
community business (or, in the case of a new
partnership, such partnership was being
organized for purposes of being a renewal
community business), and
``(C) during substantially all of the
taxpayer's holding period for such interest,
such partnership qualified as a renewal
community business.
A rule similar to the rule of paragraph (2)(B) shall
apply for purposes of this paragraph.
``(4) Qualified community business property.--
``(A) In general.--The term `qualified
community business property' means tangible
property if--
``(i) such property was acquired by
the taxpayer by purchase (as defined in
section 179(d)(2)) after December 31,
2001, and before January 1, 2010,
``(ii) the original use of such
property in the renewal community
commences with the taxpayer, and
``(iii) during substantially all of
the taxpayer's holding period for such
property, substantially all of the use
of such property was in a renewal
community business of the taxpayer.
``(B) Special rule for substantial
improvements.--The requirements of clauses (i)
and (ii) of subparagraph (A) shall be treated
as satisfied with respect to--
``(i) property which is
substantially improved by the taxpayer
before January 1, 2010, and
``(ii) any land on which such
property is located.
The determination of whether a property is
substantially improved shall be made under
clause (ii) of section 1400B(b)(4)(B), except
that `December 31, 2001' shall be substituted
for `December 31, 1997' in such clause.
``(c) Qualified Capital Gain.--For purposes of this
section--
``(1) In general.--Except as otherwise provided in
this subsection, the term `qualified capital gain'
means any gain recognized on the sale or exchange of--
``(A) a capital asset, or
``(B) property used in the trade or
business (as defined in section 1231(b)).
``(2) Gain before 2002 or after 2014 not
qualified.--The term `qualified capital gain' shall not
include any gain attributable to periods before January
1, 2002, or after December 31, 2014.
``(3) Certain rules to apply.--Rules similar to the
rules of paragraphs (3), (4), and (5) of section
1400B(e) shall apply for purposes of this subsection.
``(d) Certain Rules To Apply.--For purposes of this
section, rules similar to the rules of paragraphs (5), (6), and
(7) of subsection (b), and subsections (f) and (g), of section
1400B shall apply; except that for such purposes section
1400B(g)(2) shall be applied by substituting `January 1, 2002'
for `January 1, 1998' and `December 31, 2014' for `December 31,
2008'.
``(e) Regulations.--The Secretary shall prescribe such
regulations as may be appropriate to carry out the purposes of
this section, including regulations to prevent the abuse of the
purposes of this section.
``SEC. 1400G. RENEWAL COMMUNITY BUSINESS DEFINED.
``For purposes of this subchapter, the term `renewal
community business' means any entity or proprietorship which
would be a qualified business entity or qualified
proprietorship under section 1397C if references to renewal
communities were substituted for references to empowerment
zones in such section.
``PART III--ADDITIONAL INCENTIVES
``Sec. 1400H. Renewal community employment credit.
``Sec. 1400I. Commercial revitalization deduction.
``Sec. 1400J. Increase in expensing under section 179.
``SEC. 1400H. RENEWAL COMMUNITY EMPLOYMENT CREDIT.
``(a) In General.--Subject to the modification in
subsection (b), a renewal community shall be treated as an
empowerment zone for purposes of section 1396 with respect to
wages paid or incurred after December 31, 2001.
``(b) Modification.--In applying section 1396 with respect
to renewal communities--
``(1) the applicable percentage shall be 15
percent, and
``(2) subsection (c) thereof shall be applied by
substituting `$10,000' for `$15,000' each place it
appears.
``SEC. 1400I. COMMERCIAL REVITALIZATION DEDUCTION.
``(a) General Rule.--At the election of the taxpayer,
either--
``(1) one-half of any qualified revitalization
expenditures chargeable to capital account with respect
to any qualified revitalization building shall be
allowable as a deduction for the taxable year in which
the building is placed in service, or
``(2) a deduction for all such expenditures shall
be allowable ratably over the 120-month period
beginning with the month in which the building is
placed in service.
``(b) Qualified Revitalization Buildings and
Expenditures.--For purposes of this section--
``(1) Qualified revitalization building.--The term
`qualified revitalization building' means any building
(and its structural components) if--
``(A) the building is placed in service by
the taxpayer in a renewal community and the
original use of the building begins with the
taxpayer, or
``(B) in the case of such building not
described in subparagraph (A), such building--
``(i) is substantially
rehabilitated (within the meaning of
section 47(c)(1)(C)) by the taxpayer,
and
``(ii) is placed in service by the
taxpayer after the rehabilitation in a
renewal community.
``(2) Qualified revitalization expenditure.--
``(A) In general.--The term `qualified
revitalization expenditure' means any amount
properly chargeable to capital account for
property for which depreciation is allowable
under section 168 (without regard to this
section) and which is--
``(i) nonresidential real property
(as defined in section 168(e)), or
``(ii) section 1250 property (as
defined in section 1250(c)) which is
functionally related and subordinate to
property described in clause (i).
``(B) Certain expenditures not included.--
``(i) Acquisition cost.--In the
case of a building described in
paragraph (1)(B), the cost of acquiring
the building or interest therein shall
be treated as a qualified
revitalization expenditure only to the
extent that such cost does not exceed
30 percent of the aggregate qualified
revitalization expenditures (determined
without regard to such cost) with
respect to such building.
``(ii) Credits.--The term
`qualified revitalization expenditure'
does not include any expenditure which
the taxpayer may take into account in
computing any credit allowable under
this title unless the taxpayer elects
to take the expenditure into account
only for purposes of this section.
``(c) Dollar Limitation.--The aggregate amount which may be
treated as qualified revitalization expenditures with respect
to any qualified revitalization building shall not exceed the
lesser of--
``(1) $10,000,000, or
``(2) the commercial revitalization expenditure
amount allocated to such building under this section by
the commercial revitalization agency for the State in
which the building is located.
``(d) Commercial Revitalization Expenditure Amount.--
``(1) In general.--The aggregate commercial
revitalization expenditure amount which a commercial
revitalization agency may allocate for any calendar
year is the amount of the State commercial
revitalization expenditure ceiling determined under
this paragraph for such calendar year for such agency.
``(2) State commercial revitalization expenditure
ceiling.--The State commercial revitalization
expenditure ceiling applicable to any State--
``(A) for each calendar year after 2001 and
before 2010 is $12,000,000 for each renewal
community in the State, and
``(B) for each calendar year thereafter is
zero.
``(3) Commercial revitalization agency.--For
purposes of this section, the term `commercial
revitalization agency' means any agency authorized by a
State to carry out this section.
``(4) Time and manner of allocations.--Allocations
under this section shall be made at the same time and
in the same manner as under paragraphs (1) and (7) of
section 42(h).
``(e) Responsibilities of Commercial Revitalization
Agencies.--
``(1) Plans for allocation.--Notwithstanding any
other provision of this section, the commercial
revitalization expenditure amount with respect to any
building shall be zero unless--
``(A) such amount was allocated pursuant to
a qualified allocation plan of the commercial
revitalization agency which is approved (in
accordance with rules similar to the rules of
section 147(f )(2) (other than subparagraph
(B)(ii) thereof)) by the governmental unit of
which such agency is a part, and
``(B) such agency notifies the chief
executive officer (or its equivalent) of the
local jurisdiction within which the building is
located of such allocation and provides such
individual a reasonable opportunity to comment
on the allocation.
``(2) Qualified allocation plan.--For purposes of
this subsection, the term `qualified allocation plan'
means any plan--
``(A) which sets forth selection criteria
to be used to determine priorities of the
commercial revitalization agency which are
appropriate to local conditions,
``(B) which considers--
``(i) the degree to which a project
contributes to the implementation of a
strategic plan that is devised for a
renewal community through a citizen
participation process,
``(ii) the amount of any increase
in permanent, full-time employment by
reason of any project, and
``(iii) the active involvement of
residents and nonprofit groups within
the renewal community, and
``(C) which provides a procedure that the
agency (or its agent) will follow in monitoring
compliance with this section.
``(f) Special Rules.--
``(1) Deduction in lieu of depreciation.--The
deduction provided by this section for qualified
revitalization expenditures shall--
``(A) with respect to the deduction
determined under subsection (a)(1), be in lieu
of any depreciation deduction otherwise
allowable on account of one-half of such
expenditures, and
``(B) with respect to the deduction
determined under subsection (a)(2), be in lieu
of any depreciation deduction otherwise
allowable on account of all of such
expenditures.
``(2) Basis adjustment, etc.--For purposes of
sections 1016 and 1250, the deduction under this
section shall be treated in the same manner as a
depreciation deduction. For purposes of section
1250(b)(5), the straight line method of adjustment
shall be determined without regard to this section.
``(3) Substantial rehabilitations treated as
separate buildings.--A substantial rehabilitation
(within the meaning of section 47(c)(1)(C)) of a
building shall be treated as a separate building for
purposes of subsection (a).
``(4) Clarification of allowance of deduction under
minimum tax.--Notwithstanding section 56(a)(1), the
deduction under this section shall be allowed in
determining alternative minimum taxable income under
section 55.
``(g) Termination.--This section shall not apply to any
building placed in service after December 31, 2009.
``SEC. 1400J. INCREASE IN EXPENSING UNDER SECTION 179.
``(a) In General.--For purposes of section 1397A--
``(1) a renewal community shall be treated as an
empowerment zone,
``(2) a renewal community business shall be treated
as an enterprise zone business, and
``(3) qualified renewal property shall be treated
as qualified zone property.
``(b) Qualified Renewal Property.--For purposes of this
section--
``(1) In general.--The term `qualified renewal
property' means any property to which section 168
applies (or would apply but for section 179) if--
``(A) such property was acquired by the
taxpayer by purchase (as defined in section
179(d)(2)) after December 31, 2001, and before
January 1, 2010, and
``(B) such property would be qualified zone
property (as defined in section 1397D) if
references to renewal communities were
substituted for references to empowerment zones
in section 1397D.
``(2) Certain rules to apply.--The rules of
subsections (a)(2) and (b) of section 1397D shall apply
for purposes of this section.''.
(b) Exception for Commercial Revitalization Deduction From
Passive Loss Rules.--
(1) Paragraph (3) of section 469(i) is amended by
redesignating subparagraphs (C), (D), and (E) as
subparagraphs (D), (E), and (F), respectively, and by
inserting after subparagraph (B) the following new
subparagraph:
``(C) Exception for commercial
revitalization deduction.--Subparagraph (A)
shall not apply to any portion of the passive
activity loss for any taxable year which is
attributable to the commercial revitalization
deduction under section 1400I.''.
(2) Subparagraph (E) of section 469(i)(3), as
redesignated by subparagraph (A), is amended to read as
follows:
``(E) Ordering rules to reflect exceptions
and separate phase-outs.--If subparagraph (B),
(C), or (D) applies for a taxable year,
paragraph (1) shall be applied--
``(i) first to the portion of the
passive activity loss to which
subparagraph (C) does not apply,
``(ii) second to the portion of the
passive activity credit to which
subparagraph (B) or (D) does not apply,
``(iii) third to the portion of
such credit to which subparagraph (B)
applies,
``(iv) fourth to the portion of
such loss to which subparagraph (C)
applies, and
``(v) then to the portion of such
credit to which subparagraph (D)
applies.''.
(3)(A) Subparagraph (B) of section 469(i)(6) is
amended by striking ``or'' at the end of clause (i), by
striking the period at the end of clause (ii) and
inserting ``, or'', and by adding at the end the
following new clause:
``(iii) any deduction under section
1400I (relating to commercial
revitalization deduction).''.
(B) The heading for such subparagraph (B) is
amended by striking ``or rehabilitation credit'' and
inserting ``, rehabilitation credit, or commercial
revitalization deduction''.
(c) Audit and Report.--Not later than January 31 of 2004,
2007, and 2010, the Comptroller General of the United States
shall, pursuant to an audit of the renewal community program
established under section 1400E of the Internal Revenue Code of
1986 (as added by subsection (a)) and the empowerment zone and
enterprise community program under subchapter U of chapter 1 of
such Code, report to Congress on such program and its effect on
poverty, unemployment, and economic growth within the
designated renewal communities, empowerment zones, and
enterprise communities.
(d) Clerical Amendment.--The table of subchapters for
chapter 1 is amended by adding at the end the following new
item:
``Subchapter X. Renewal Communities.''.
SEC. 102. WORK OPPORTUNITY CREDIT FOR HIRING YOUTH RESIDING IN RENEWAL
COMMUNITIES.
(a) High-Risk Youth.--Subparagraphs (A)(ii) and (B) of
section 51(d)(5) are each amended by striking ``empowerment
zone or enterprise community'' and inserting ``empowerment
zone, enterprise community, or renewal community''.
(b) Qualified Summer Youth Employee.--Clause (iv) of
section 51(d)(7)(A) is amended by striking ``empowerment zone
or enterprise community'' and inserting ``empowerment zone,
enterprise community, or renewal community''.
(c) Headings.--Paragraphs (5)(B) and (7)(C) of section
51(d) are each amended by inserting ``or community'' in the
heading after ``zone''.
(d) Effective Date.--The amendments made by this section
shall apply to individuals who begin work for the employer
after December 31, 2001.
Subtitle B--Extension and Expansion of Empowerment Zone Incentives
SEC. 111. AUTHORITY TO DESIGNATE 9 ADDITIONAL EMPOWERMENT ZONES.
Section 1391 is amended by adding at the end the following
new subsection:
``(h) Additional Designations Permitted.--
``(1) In general.--In addition to the areas
designated under subsections (a) and (g), the
appropriate Secretaries may designate in the aggregate
an additional 9 nominated areas as empowerment zones
under this section, subject to the availability of
eligible nominated areas. Of that number, not more than
seven may be designated in urban areas and not more
than 2 may be designated in rural areas.
``(2) Period designations may be made and take
effect.--A designation may be made under this
subsection after the date of the enactment of this
subsection and before January 1, 2002. Subject to
subparagraphs (B) and (C) of subsection (d)(1), such
designations shall remain in effect during the period
beginning on January 1, 2002, and ending on December
31, 2009.
``(3) Modifications to eligibility criteria, etc.--
The rules of subsection (g)(3) shall apply to
designations under this subsection.
``(4) Empowerment zones which become renewal
communities.--The number of areas which may be
designated as empowerment zones under this subsection
shall be increased by 1 for each area which ceases to
be an empowerment zone by reason of section 1400E(e).
Each additional area designated by reason of the
preceding sentence shall have the same urban or rural
character as the area it is replacing.''
SEC. 112. EXTENSION OF EMPOWERMENT ZONE TREATMENT THROUGH 2009.
Subparagraph (A) of section 1391(d)(1) (relating to period
for which designation is in effect) is amended to read as
follows:
``(A)(i) in the case of an empowerment
zone, December 31, 2009, or
``(ii) in the case of an enterprise
community, the close of the 10th calendar year
beginning on or after such date of
designation,''.
SEC. 113. 20 PERCENT EMPLOYMENT CREDIT FOR ALL EMPOWERMENT ZONES.
(a) 20 Percent Credit.--Subsection (b) of section 1396
(relating to empowerment zone employment credit) is amended to
read as follows:
``(b) Applicable Percentage.--For purposes of this section,
the applicable percentage is 20 percent.''.
(b) All Empowerment Zones Eligible for Credit.--Section
1396 is amended by striking subsection (e).
(c) Conforming Amendment.--Subsection (d) of section 1400
is amended to read as follows:
``(d) Special Rule for Application of Employment Credit.--
With respect to the DC Zone, section 1396(d)(1)(B) (relating to
empowerment zone employment credit) shall be applied by
substituting `the District of Columbia' for `such empowerment
zone'.''.
(d) Effective Date.--The amendments made by this section
shall apply to wages paid or incurred after December 31, 2001.
SEC. 114. INCREASED EXPENSING UNDER SECTION 179.
(a) In General.--Subparagraph (A) of section 1397A(a)(1) is
amended by striking ``$20,000'' and inserting ``$35,000''.
(b) Expensing for Property Used in Developable Sites.--
Section 1397A is amended by striking subsection (c).
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31, 2001.
SEC. 115. HIGHER LIMITS ON TAX-EXEMPT EMPOWERMENT ZONE FACILITY BONDS.
(a) In General.--Paragraph (3) of section 1394(f) (relating
to bonds for empowerment zones designated under section
1391(g)) is amended to read as follows:
``(3) Empowerment zone facility bond.--For purposes
of this subsection, the term `empowerment zone facility
bond' means any bond which would be described in
subsection (a) if--
``(A) in the case of obligations issued
before January 1, 2002, only empowerment zones
designated under section 1391(g) were taken
into account under sections 1397C and 1397D,
and
``(B) in the case of obligations issued
after December 31, 2001, all empowerment zones
(other than the District of Columbia Enterprise
Zone) were taken into account under sections
1397C and 1397D.''.
(b) Effective Date.--The amendments made by this section
shall apply to obligations issued after December 31, 2001.
SEC. 116. NONRECOGNITION OF GAIN ON ROLLOVER OF EMPOWERMENT ZONE
INVESTMENTS.
(a) In General.--Part III of subchapter U of chapter 1 is
amended--
(1) by redesignating subpart C as subpart D,
(2) by redesignating sections 1397B and 1397C as
sections 1397C and 1397D, respectively, and
(3) by inserting after subpart B the following new
subpart:
``Subpart C--Nonrecognition of Gain on Rollover of Empowerment Zone
Investments
``Sec. 1397B. Nonrecognition of gain on rollover of empowerment
zone investments.
``SEC. 1397B. NONRECOGNITION OF GAIN ON ROLLOVER OF EMPOWERMENT ZONE
INVESTMENTS.
``(a) Nonrecognition of Gain.--In the case of any sale of a
qualified empowerment zone asset held by the taxpayer for more
than 1 year and with respect to which such taxpayer elects the
application of this section, gain from such sale shall be
recognized only to the extent that the amount realized on such
sale exceeds--
``(1) the cost of any qualified empowerment zone
asset (with respect to the same zone as the asset sold)
purchased by the taxpayer during the 60-day period
beginning on the date of such sale, reduced by
``(2) any portion of such cost previously taken
into account under this section.
``(b) Definitions and Special Rules.--For purposes of this
section--
``(1) Qualified empowerment zone asset.--
``(A) In general.--The term `qualified
empowerment zone asset' means any property
which would be a qualified community asset (as
defined in section 1400F) if in section 1400F--
``(i) references to empowerment
zones were substituted for references
to renewal communities,
``(ii) references to enterprise
zone businesses (as defined in section
1397C) were substituted for references
to renewal community businesses, and
``(iii) the date of the enactment
of this paragraph were substituted for
`December 31, 2001' each place it
appears.
``(B) Treatment of dc zone.--The District
of Columbia Enterprise Zone shall not be
treated as an empowerment zone for purposes of
this section.
``(2) Certain gain not eligible for rollover.--This
section shall not apply to--
``(A) any gain which is treated as ordinary
income for purposes of this subtitle, and
``(B) any gain which is attributable to
real property, or an intangible asset, which is
not an integral part of an enterprise zone
business.
``(3) Purchase.--A taxpayer shall be treated as
having purchased any property if, but for paragraph
(4), the unadjusted basis of such property in the hands
of the taxpayer would be its cost (within the meaning
of section 1012).
``(4) Basis adjustments.--If gain from any sale is
not recognized by reason of subsection (a), such gain
shall be applied to reduce (in the order acquired) the
basis for determining gain or loss of any qualified
empowerment zone asset which is purchased by the
taxpayer during the 60-day period described in
subsection (a). This paragraph shall not apply for
purposes of section 1202.
``(5) Holding period.--For purposes of determining
whether the nonrecognition of gain under subsection (a)
applies to any qualified empowerment zone asset which
is sold--
``(A) the taxpayer's holding period for
such asset and the asset referred to in
subsection (a)(1) shall be determined without
regard to section 1223, and
``(B) only the first year of the taxpayer's
holding period for the asset referred to in
subsection (a)(1) shall be taken into account
for purposes of paragraphs (2)(A)(iii), (3)(C),
and (4)(A)(iii) of section 1400F(b).''.
(b) Conforming Amendments.--
(1) Paragraph (23) of section 1016(a) is amended--
(A) by striking ``or 1045'' and inserting
``1045, or 1397B'', and
(B) by striking ``or 1045(b)(4)'' and
inserting ``1045(b)(4), or 1397B(b)(4)''.
(2) Paragraph (15) of section 1223 is amended to
read as follows:
``(15) Except for purposes of sections 1202(a)(2),
1202(c)(2)(A), 1400B(b), and 1400F(b), in determining
the period for which the taxpayer has held property the
acquisition of which resulted under section 1045 or
1397B in the nonrecognition of any part of the gain
realized on the sale of other property, there shall be
included the period for which such other property has
been held as of the date of such sale.''.
(3) Paragraph (2) of section 1394(b) is amended--
(A) by striking ``section 1397C'' and
inserting ``section 1397D'', and
(B) by striking ``section 1397C(a)(2)'' and
inserting ``section 1397D(a)(2)''.
(4) Paragraph (3) of section 1394(b) is amended--
(A) by striking ``section 1397B'' each
place it appears and inserting ``section
1397C'', and
(B) by striking ``section 1397B(d)'' and
inserting ``section 1397C(d)''.
(5) Sections 1400(e) and 1400B(c) are each amended
by striking ``section 1397B'' each place it appears and
inserting ``section 1397C''.
(6) The table of subparts for part III of
subchapter U of chapter 1 is amended by striking the
last item and inserting the following new items:
``Subpart C. Nonrecognition of gain on rollover of empowerment
zone investments.
``Subpart D. General provisions.''.
(7) The table of sections for subpart D of such
part III is amended to read as follows:
``Sec. 1397C. Enterprise zone business defined.
``Sec. 1397D. Qualified zone property defined.''.
(c) Effective Date.--The amendments made by this section
shall apply to qualified empowerment zone assets acquired after
the date of the enactment of this Act.
SEC. 117. INCREASED EXCLUSION OF GAIN ON SALE OF EMPOWERMENT ZONE
STOCK.
(a) In General.--Subsection (a) of section 1202 is amended
to read as follows:
``(a) Exclusion.--
``(1) In general.--In the case of a taxpayer other
than a corporation, gross income shall not include 50
percent of any gain from the sale or exchange of
qualified small business stock held for more than 5
years.
``(2) Empowerment zone businesses.--
``(A) In general.--In the case of qualified
small business stock acquired after the date of
the enactment of this paragraph in a
corporation which is a qualified business
entity (as defined in section 1397C(b)) during
substantially all of the taxpayer's holding
period for such stock, paragraph (1) shall be
applied by substituting `60 percent' for `50
percent'.
``(B) Certain rules to apply.--Rules
similar to the rules of paragraphs (5) and (7)
of section 1400B(b) shall apply for purposes of
this paragraph.
``(C) Gain after 2014 not qualified.--
Subparagraph (A) shall not apply to gain
attributable to periods after December 31,
2014.
``(D) Treatment of dc zone.--The District
of Columbia Enterprise Zone shall not be
treated as an empowerment zone for purposes of
this paragraph.''.
(b) Conforming Amendments.--
(1) Paragraph (8) of section 1(h) is amended by
striking ``means'' and all that follows and inserting
``means the excess of--
``(A) the gain which would be excluded from
gross income under section 1202 but for the
percentage limitation in section 1202(a), over
``(B) the gain excluded from gross income
under section 1202.''.
(2) The section heading for section 1202 is amended
by striking ``50-percent'' and inserting ``partial''.
(3) The table of sections for part I of subchapter
P of chapter 1 is amended by striking ``50-percent''
and inserting ``Partial''.
(c) Effective Date.--The amendments made by this section
shall apply to stock acquired after the date of the enactment
of this Act.
Subtitle C--New Markets Tax Credit
SEC. 121. NEW MARKETS TAX CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 (relating to business-related credits) is amended by
adding at the end the following new section:
``SEC. 45D. NEW MARKETS TAX CREDIT.
``(a) Allowance of Credit.--
``(1) In general.--For purposes of section 38, in
the case of a taxpayer who holds a qualified equity
investment on a credit allowance date of such
investment which occurs during the taxable year, the
new markets tax credit determined under this section
for such taxable year is an amount equal to the
applicable percentage of the amount paid to the
qualified community development entity for such
investment at its original issue.
``(2) Applicable percentage.--For purposes of
paragraph (1), the applicable percentage is--
``(A) 5 percent with respect to the first 3
credit allowance dates, and
``(B) 6 percent with respect to the
remainder of the credit allowance dates.
``(3) Credit allowance date.--For purposes of
paragraph (1), the term `credit allowance date' means,
with respect to any qualified equity investment--
``(A) the date on which such investment is
initially made, and
``(B) each of the 6 anniversary dates of
such date thereafter.
``(b) Qualified Equity Investment.--For purposes of this
section--
``(1) In general.--The term `qualified equity
investment' means any equity investment in a qualified
community development entity if--
``(A) such investment is acquired by the
taxpayer at its original issue (directly or
through an underwriter) solely in exchange for
cash,
``(B) substantially all of such cash is
used by the qualified community development
entity to make qualified low-income community
investments, and
``(C) such investment is designated for
purposes of this section by the qualified
community development entity.
Such term shall not include any equity investment
issued by a qualified community development entity more
than 5 years after the date that such entity receives
an allocation under subsection (f). Any allocation not
used within such 5-year period may be reallocated by
the Secretary under subsection (f).
``(2) Limitation.--The maximum amount of equity
investments issued by a qualified community development
entity which may be designated under paragraph (1)(C)
by such entity shall not exceed the portion of the
limitation amount allocated under subsection (f) to
such entity.
``(3) Safe harbor for determining use of cash.--The
requirement of paragraph (1)(B) shall be treated as met
if at least 85 percent of the aggregate gross assets of
the qualified community development entity are invested
in qualified low-income community investments.
``(4) Treatment of subsequent purchasers.--The term
`qualified equity investment' includes any equity
investment which would (but for paragraph (1)(A)) be a
qualified equity investment in the hands of the
taxpayer if such investment was a qualified equity
investment in the hands of a prior holder.
``(5) Redemptions.--A rule similar to the rule of
section 1202(c)(3) shall apply for purposes of this
subsection.
``(6) Equity investment.--The term `equity
investment' means--
``(A) any stock (other than nonqualified
preferred stock as defined in section
351(g)(2)) in an entity which is a corporation,
and
``(B) any capital interest in an entity
which is a partnership.
``(c) Qualified Community Development Entity.--For purposes
of this section--
``(1) In general.--The term `qualified community
development entity' means any domestic corporation or
partnership if--
``(A) the primary mission of the entity is
serving, or providing investment capital for,
low-income communities or low-income persons,
``(B) the entity maintains accountability
to residents of low-income communities through
their representation on any governing board of
the entity or on any advisory board to the
entity, and
``(C) the entity is certified by the
Secretary for purposes of this section as being
a qualified community development entity.
``(2) Special rules for certain organizations.--The
requirements of paragraph (1) shall be treated as met
by--
``(A) any specialized small business
investment company (as defined in section
1044(c)(3)), and
``(B) any community development financial
institution (as defined in section 103 of the
Community Development Banking and Financial
Institutions Act of 1994 (12 U.S.C. 4702)).
``(d) Qualified Low-Income Community Investments.--For
purposes of this section--
``(1) In general.--The term `qualified low-income
community investment' means--
``(A) any capital or equity investment in,
or loan to, any qualified active low-income
community business,
``(B) the purchase from another qualified
community development entity of any loan made
by such entity which is a qualified low-income
community investment,
``(C) financial counseling and other
services specified in regulations prescribed by
the Secretary to businesses located in, and
residents of, low-income communities, and
``(D) any equity investment in, or loan to,
any qualified community development entity.
``(2) Qualified active low-income community
business.--
``(A) In general.--For purposes of
paragraph (1), the term `qualified active low-
income community business' means, with respect
to any taxable year, any corporation (including
a nonprofit corporation) or partnership if for
such year--
``(i) at least 50 percent of the
total gross income of such entity is
derived from the active conduct of a
qualified business within any low-
income community,
``(ii) a substantial portion of the
use of the tangible property of such
entity (whether owned or leased) is
within any low-income community,
``(iii) a substantial portion of
the services performed for such entity
by its employees are performed in any
low-income community,
``(iv) less than 5 percent of the
average of the aggregate unadjusted
bases of the property of such entity is
attributable to collectibles (as
defined in section 408(m)(2)) other
than collectibles that are held
primarily for sale to customers in the
ordinary course of such business, and
``(v) less than 5 percent of the
average of the aggregate unadjusted
bases of the property of such entity is
attributable to nonqualified financial
property (as defined in section
1397C(e)).
``(B) Proprietorship.--Such term shall
include any business carried on by an
individual as a proprietor if such business
would meet the requirements of subparagraph (A)
were it incorporated.
``(C) Portions of business may be qualified
active low-income community business.--The term
`qualified active low-income community
business' includes any trades or businesses
which would qualify as a qualified active low-
income community business if such trades or
businesses were separately incorporated.
``(3) Qualified business.--For purposes of this
subsection, the term `qualified business' has the
meaning given to such term by section 1397C(d); except
that--
``(A) in lieu of applying paragraph (2)(B)
thereof, the rental to others of real property
located in any low-income community shall be
treated as a qualified business if there are
substantial improvements located on such
property, and
``(B) paragraph (3) thereof shall not
apply.
``(e) Low-Income Community.--For purposes of this section--
``(1) In general.--The term `low-income community'
means any population census tract if--
``(A) the poverty rate for such tract is at
least 20 percent, or
``(B)(i) in the case of a tract not located
within a metropolitan area, the median family
income for such tract does not exceed 80
percent of statewide median family income, or
``(ii) in the case of a tract located
within a metropolitan area, the median family
income for such tract does not exceed 80
percent of the greater of statewide median
family income or the metropolitan area median
family income.
Subparagraph (B) shall be applied using possessionwide
median family income in the case of census tracts
located within a possession of the United States.
``(2) Targeted areas.--The Secretary may designate
any area within any census tract as a low-income
community if--
``(A) the boundary of such area is
continuous,
``(B) the area would satisfy the
requirements of paragraph (1) if it were a
census tract, and
``(C) an inadequate access to investment
capital exists in such area.
``(3) Areas not within census tracts.--In the case
of an area which is not tracted for population census
tracts, the equivalent county divisions (as defined by
the Bureau of the Census for purposes of defining
poverty areas) shall be used for purposes of
determining poverty rates and median family income.
``(f) National Limitation on Amount of Investments
Designated.--
``(1) In general.--There is a new markets tax
credit limitation for each calendar year. Such
limitation is--
``(A) $1,000,000,000 for 2001,
``(B) $1,500,000,000 for 2002 and 2003,
``(C) $2,000,000,000 for 2004 and 2005, and
``(D) $3,500,000,000 for 2006 and 2007.
``(2) Allocation of limitation.--The limitation
under paragraph (1) shall be allocated by the Secretary
among qualified community development entities selected
by the Secretary. In making allocations under the
preceding sentence, the Secretary shall give priority
to any entity--
``(A) with a record of having successfully
provided capital or technical assistance to
disadvantaged businesses or communities, or
``(B) which intends to satisfy the
requirement under subsection (b)(1)(B) by
making qualified low-income community
investments in 1 or more businesses in which
persons unrelated to such entity (within the
meaning of section 267(b) or 707(b)(1)) hold
the majority equity interest.
``(3) Carryover of unused limitation.--If the new
markets tax credit limitation for any calendar year
exceeds the aggregate amount allocated under paragraph
(2) for such year, such limitation for the succeeding
calendar year shall be increased by the amount of such
excess. No amount may be carried under the preceding
sentence to any calendar year after 2014.
``(g) Recapture of Credit In Certain Cases.--
``(1) In general.--If, at any time during the 7-
year period beginning on the date of the original issue
of a qualified equity investment in a qualified
community development entity, there is a recapture
event with respect to such investment, then the tax
imposed by this chapter for the taxable year in which
such event occurs shall be increased by the credit
recapture amount.
``(2) Credit recapture amount.--For purposes of
paragraph (1), the credit recapture amount is an amount
equal to the sum of--
``(A) the aggregate decrease in the credits
allowed to the taxpayer under section 38 for
all prior taxable years which would have
resulted if no credit had been determined under
this section with respect to such investment,
plus
``(B) interest at the underpayment rate
established under section 6621 on the amount
determined under subparagraph (A) for each
prior taxable year for the period beginning on
the due date for filing the return for the
prior taxable year involved.
No deduction shall be allowed under this chapter for
interest described in subparagraph (B).
``(3) Recapture event.--For purposes of paragraph
(1), there is a recapture event with respect to an
equity investment in a qualified community development
entity if--
``(A) such entity ceases to be a qualified
community development entity,
``(B) the proceeds of the investment cease
to be used as required of subsection (b)(1)(B),
or
``(C) such investment is redeemed by such
entity.
``(4) Special rules.--
``(A) Tax benefit rule.--The tax for the
taxable year shall be increased under paragraph
(1) only with respect to credits allowed by
reason of this section which were used to
reduce tax liability. In the case of credits
not so used to reduce tax liability, the
carryforwards and carrybacks under section 39
shall be appropriately adjusted.
``(B) No credits against tax.--Any increase
in tax under this subsection shall not be
treated as a tax imposed by this chapter for
purposes of determining the amount of any
credit under this chapter or for purposes of
section 55.
``(h) Basis Reduction.--The basis of any qualified equity
investment shall be reduced by the amount of any credit
determined under this section with respect to such investment.
This subsection shall not apply for purposes of sections 1202,
1400B, and 1400F.
``(i) Regulations.--The Secretary shall prescribe such
regulations as may be appropriate to carry out this section,
including regulations--
``(1) which limit the credit for investments which
are directly or indirectly subsidized by other Federal
tax benefits (including the credit under section 42 and
the exclusion from gross income under section 103),
``(2) which prevent the abuse of the purposes of
this section,
``(3) which provide rules for determining whether
the requirement of subsection (b)(1)(B) is treated as
met,
``(4) which impose appropriate reporting
requirements, and
``(5) which apply the provisions of this section to
newly formed entities.''.
(b) Credit Made Part of General Business Credit.--
(1) In general.--Subsection (b) of section 38 is
amended by striking ``plus'' at the end of paragraph
(11), by striking the period at the end of paragraph
(12) and inserting ``, plus'', and by adding at the end
the following new paragraph:
``(13) the new markets tax credit determined under
section 45D(a).''.
(2) Limitation on carryback.--Subsection (d) of
section 39 is amended by adding at the end the
following new paragraph:
``(9) No carryback of new markets tax credit before
january 1, 2001.--No portion of the unused business
credit for any taxable year which is attributable to
the credit under section 45D may be carried back to a
taxable year ending before January 1, 2001.''.
(c) Deduction for Unused Credit.--Subsection (c) of section
196 is amended by striking ``and'' at the end of paragraph (7),
by striking the period at the end of paragraph (8) and
inserting ``, and'', and by adding at the end the following new
paragraph:
``(9) the new markets tax credit determined under
section 45D(a).''.
(d) Clerical Amendment.--The table of sections for subpart
D of part IV of subchapter A of chapter 1 is amended by adding
at the end the following new item:
``Sec. 45D. New markets tax credit.''.
(e) Effective Date.--The amendments made by this section
shall apply to investments made after December 31, 2000.
(f) Guidance on Allocation of National Limitation.--Not
later than 120 days after the date of the enactment of this
Act, the Secretary of the Treasury or the Secretary's delegate
shall issue guidance which specifies--
(1) how entities shall apply for an allocation
under section 45D(f)(2) of the Internal Revenue Code of
1986, as added by this section;
(2) the competitive procedure through which such
allocations are made; and
(3) the actions that such Secretary or delegate
shall take to ensure that such allocations are properly
made to appropriate entities.
(g) Audit and Report.--Not later than January 31 of 2004,
2007, and 2010, the Comptroller General of the United States
shall, pursuant to an audit of the new markets tax credit
program established under section 45D of the Internal Revenue
Code of 1986 (as added by subsection (a)), report to Congress
on such program, including all qualified community development
entities that receive an allocation under the new markets
credit under such section.
Subtitle D--Improvements in Low-Income Housing Credit
SEC. 131. MODIFICATION OF STATE CEILING ON LOW-INCOME HOUSING CREDIT.
(a) In General.--Clauses (i) and (ii) of section
42(h)(3)(C) (relating to State housing credit ceiling) are
amended to read as follows:
``(i) the unused State housing
credit ceiling (if any) of such State
for the preceding calendar year,
``(ii) the greater of--
``(I) $1.75 ($1.50 for
2001) multiplied by the State
population, or
``(II) $2,000,000,''.
(b) Adjustment of State Ceiling for Increases in Cost-of-
Living.--Paragraph (3) of section 42(h) (relating to housing
credit dollar amount for agencies) is amended by adding at the
end the following new subparagraph:
``(H) Cost-of-living adjustment.--
``(i) In general.--In the case of a
calendar year after 2002, the
$2,000,000 and $1.75 amounts in
subparagraph (C) shall each be
increased by an amount equal to--
``(I) such dollar amount,
multiplied by
``(II) the cost-of-living
adjustment determined under
section 1(f)(3) for such
calendar year by substituting
`calendar year 2001' for
`calendar year 1992' in
subparagraph (B) thereof.
``(ii) Rounding.--
``(I) In the case of the
$2,000,000 amount, any increase
under clause (i) which is not a
multiple of $5,000 shall be
rounded to the next lowest
multiple of $5,000.
``(II) In the case of the
$1.75 amount, any increase
under clause (i) which is not a
multiple of 5 cents shall be
rounded to the next lowest
multiple of 5 cents.''.
(c) Conforming Amendments.--
(1) Section 42(h)(3)(C), as amended by subsection
(a), is amended--
(A) by striking ``clause (ii)'' in the
matter following clause (iv) and inserting
``clause (i)''; and
(B) by striking ``clauses (i)'' in the
matter following clause (iv) and inserting
``clauses (ii)''.
(2) Section 42(h)(3)(D)(ii) is amended--
(A) by striking ``subparagraph (C)(ii)''
and inserting ``subparagraph (C)(i)''; and
(B) by striking ``clauses (i)'' in
subclause (II) and inserting ``clauses (ii)''.
(d) Effective Date.--The amendments made by this section
shall apply to calendar years after 2000.
SEC. 132. MODIFICATION OF CRITERIA FOR ALLOCATING HOUSING CREDITS AMONG
PROJECTS.
(a) Selection Criteria.--Subparagraph (C) of section
42(m)(1) (relating to certain selection criteria must be used)
is amended--
(1) by inserting ``, including whether the project
includes the use of existing housing as part of a
community revitalization plan'' before the comma at the
end of clause (iii); and
(2) by striking clauses (v), (vi), and (vii) and
inserting the following new clauses:
``(v) tenant populations with
special housing needs,
``(vi) public housing waiting
lists,
``(vii) tenant populations of
individuals with children, and
``(viii) projects intended for
eventual tenant ownership.''.
(b) Preference for Community Revitalization Projects
Located in Qualified Census Tracts.--Clause (ii) of section
42(m)(1)(B) is amended by striking ``and'' at the end of
subclause (I), by adding ``and'' at the end of subclause (II),
and by inserting after subclause (II) the following new
subclause:
``(III) projects which are
located in qualified census
tracts (as defined in
subsection (d)(5)(C)) and the
development of which
contributes to a concerted
community revitalization
plan,''.
SEC. 133. ADDITIONAL RESPONSIBILITIES OF HOUSING CREDIT AGENCIES.
(a) Market Study; Public Disclosure of Rationale for Not
Following Credit Allocation Priorities.--Subparagraph (A) of
section 42(m)(1) (relating to responsibilities of housing
credit agencies) is amended by striking ``and'' at the end of
clause (i), by striking the period at the end of clause (ii)
and inserting a comma, and by adding at the end the following
new clauses:
``(iii) a comprehensive market
study of the housing needs of low-
income individuals in the area to be
served by the project is conducted
before the credit allocation is made
and at the developer's expense by a
disinterested party who is approved by
such agency, and
``(iv) a written explanation is
available to the general public for any
allocation of a housing credit dollar
amount which is not made in accordance
with established priorities and
selection criteria of the housing
credit agency.''.
(b) Site Visits.--Clause (iii) of section 42(m)(1)(B)
(relating to qualified allocation plan) is amended by inserting
before the period ``and in monitoring for noncompliance with
habitability standards through regular site visits''.
SEC. 134. MODIFICATIONS TO RULES RELATING TO BASIS OF BUILDING WHICH IS
ELIGIBLE FOR CREDIT.
(a) Adjusted Basis To Include Portion of Certain Buildings
Used by Low-Income Individuals Who Are Not Tenants and by
Project Employees.--Paragraph (4) of section 42(d) (relating to
special rules relating to determination of adjusted basis) is
amended--
(1) by striking ``subparagraph (B)'' in
subparagraph (A) and inserting ``subparagraphs (B) and
(C)'';
(2) by redesignating subparagraph (C) as
subparagraph (D); and
(3) by inserting after subparagraph (B) the
following new subparagraph:
``(C) Inclusion of basis of property used
to provide services for certain nontenants.--
``(i) In general.--The adjusted
basis of any building located in a
qualified census tract (as defined in
paragraph (5)(C)) shall be determined
by taking into account the adjusted
basis of property (of a character
subject to the allowance for
depreciation and not otherwise taken
into account) used throughout the
taxable year in providing any community
service facility.
``(ii) Limitation.--The increase in
the adjusted basis of any building
which is taken into account by reason
of clause (i) shall not exceed 10
percent of the eligible basis of the
qualified low-income housing project of
which it is a part. For purposes of the
preceding sentence, all community
service facilities which are part of
the same qualified low-income housing
project shall be treated as one
facility.
``(iii) Community service
facility.--For purposes of this
subparagraph, the term `community
service facility' means any facility
designed to serve primarily individuals
whose income is 60 percent or less of
area median income (within the meaning
of subsection (g)(1)(B)).''.
(b) Certain Native American Housing Assistance Disregarded
in Determining Whether Building Is Federally Subsidized for
Purposes of the Low-Income Housing Credit.--Subparagraph (E) of
section 42(i)(2) (relating to determination of whether building
is federally subsidized) is amended--
(1) in clause (i), by inserting ``or the Native
American Housing Assistance and Self-Determination Act
of 1996 (25 U.S.C. 4101 et seq.) (as in effect on
October 1, 1997)'' after ``this subparagraph)''; and
(2) in the subparagraph heading, by inserting ``or
native american housing assistance'' after ``home
assistance''.
SEC. 135. OTHER MODIFICATIONS.
(a) Allocation of Credit Limit to Certain Buildings.--
(1) The first sentence of section 42(h)(1)(E)(ii)
is amended by striking ``(as of'' the first place it
appears and inserting ``(as of the later of the date
which is 6 months after the date that the allocation
was made or''.
(2) The last sentence of section 42(h)(3)(C) is
amended by striking ``project which'' and inserting
``project which fails to meet the 10 percent test under
paragraph (1)(E)(ii) on a date after the close of the
calendar year in which the allocation was made or
which''.
(b) Determination of Whether Buildings Are Located in High
Cost Areas.--The first sentence of section 42(d)(5)(C)(ii)(I)
is amended--
(1) by inserting ``either'' before ``in which 50
percent''; and
(2) by inserting before the period ``or which has a
poverty rate of at least 25 percent''.
SEC. 136. CARRYFORWARD RULES.
(a) In General.--Clause (ii) of section 42(h)(3)(D)
(relating to unused housing credit carryovers allocated among
certain States) is amended by striking ``the excess'' and all
that follows and inserting ``the excess (if any) of--
``(I) the unused State
housing credit ceiling for the
year preceding such year, over
``(II) the aggregate
housing credit dollar amount
allocated for such year.''.
(b) Conforming Amendment.--The second sentence of section
42(h)(3)(C) (relating to State housing credit ceiling) is
amended by striking ``clauses (i) and (iii)'' and inserting
``clauses (i) through (iv)''.
SEC. 137. EFFECTIVE DATE.
Except as otherwise provided in this subtitle, the
amendments made by this subtitle shall apply to--
(1) housing credit dollar amounts allocated after
December 31, 2000; and
(2) buildings placed in service after such date to
the extent paragraph (1) of section 42(h) of the
Internal Revenue Code of 1986 does not apply to any
building by reason of paragraph (4) thereof, but only
with respect to bonds issued after such date.
Subtitle E--Other Community Renewal and New Markets Assistance
PART I--PROVISIONS RELATING TO HOUSING AND SUBSTANCE ABUSE PREVENTION
AND TREATMENT
SEC. 141. TRANSFER OF UNOCCUPIED AND SUBSTANDARD HUD-HELD HOUSING TO
LOCAL GOVERNMENTS AND COMMUNITY DEVELOPMENT
CORPORATIONS.
Section 204 of the Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies
Appropriations Act, 1997 (12 U.S.C. 1715z-11a) is amended--
(1) by striking ``Flexible Authority.--'' and
inserting ``Disposition of HUD-Owned Properties. (a)
Flexible Authority for Multifamily Projects.--''; and
(2) by adding at the end the following new
subsection:
``(b) Transfer of Unoccupied and Substandard Housing to
Local Governments and Community Development Corporations.--
``(1) Transfer authority.--Notwithstanding the
authority under subsection (a) and the last sentence of
section 204(g) of the National Housing Act (12 U.S.C.
1710(g)), the Secretary of Housing and Urban
Development shall transfer ownership of any qualified
HUD property, subject to the requirements of this
section, to a unit of general local government having
jurisdiction for the area in which the property is
located or to a community development corporation which
operates within such a unit of general local government
in accordance with this subsection, but only to the
extent that units of general local government and
community development corporations consent to transfer
and the Secretary determines that such transfer is
practicable.
``(2) Qualified hud properties.--For purposes of
this subsection, the term `qualified HUD property'
means any property for which, as of the date that
notification of the property is first made under
paragraph (3)(B), not less than 6 months have elapsed
since the later of the date that the property was
acquired by the Secretary or the date that the property
was determined to be unoccupied or substandard, that is
owned by the Secretary and is--
``(A) an unoccupied multifamily housing
project;
``(B) a substandard multifamily housing
project; or
``(C) an unoccupied single family property
that--
``(i) has been determined by the
Secretary not to be an eligible asset
under section 204(h) of the National
Housing Act (12 U.S.C. 1710(h)); or
``(ii) is an eligible asset under
such section 204(h), but--
``(I) is not subject to a
specific sale agreement under
such section; and
``(II) has been determined
by the Secretary to be
inappropriate for continued
inclusion in the program under
such section 204(h) pursuant to
paragraph (10) of such section.
``(3) Timing.--The Secretary shall establish
procedures that provide for--
``(A) time deadlines for transfers under
this subsection;
``(B) notification to units of general
local government and community development
corporations of qualified HUD properties in
their jurisdictions;
``(C) such units and corporations to
express interest in the transfer under this
subsection of such properties;
``(D) a right of first refusal for transfer
of qualified HUD properties to units of general
local government and community development
corporations, under which--
``(i) the Secretary shall establish
a period during which the Secretary may
not transfer such properties except to
such units and corporations;
``(ii) the Secretary shall offer
qualified HUD properties that are
single family properties for purchase
by units of general local government at
a cost of $1 for each property, but
only to the extent that the costs to
the Federal Government of disposal at
such price do not exceed the costs to
the Federal Government of disposing of
property subject to the procedures for
single family property established by
the Secretary pursuant to the authority
under the last sentence of section
204(g) of the National Housing Act (12
U.S.C. 1710(g));
``(iii) the Secretary may accept an
offer to purchase a property made by a
community development corporation only
if the offer provides for purchase on a
cost recovery basis; and
``(iv) the Secretary shall accept
an offer to purchase such a property
that is made during such period by such
a unit or corporation and that complies
with the requirements of this
paragraph; and
``(E) a written explanation, to any unit of
general local government or community
development corporation making an offer to
purchase a qualified HUD property under this
subsection that is not accepted, of the reason
that such offer was not acceptable.
``(4) Other disposition.--With respect to any
qualified HUD property, if the Secretary does not
receive an acceptable offer to purchase the property
pursuant to the procedure established under paragraph
(3), the Secretary shall dispose of the property to the
unit of general local government in which property is
located or to community development corporations
located in such unit of general local government on a
negotiated, competitive bid, or other basis, on such
terms as the Secretary deems appropriate.
``(5) Satisfaction of indebtedness.--Before
transferring ownership of any qualified HUD property
pursuant to this subsection, the Secretary shall
satisfy any indebtedness incurred in connection with
the property to be transferred, by canceling the
indebtedness.
``(6) Determination of status of properties.--To
ensure compliance with the requirements of this
subsection, the Secretary shall take the following
actions:
``(A) Upon enactment.--Upon the enactment
of this subsection, the Secretary shall
promptly assess each residential property owned
by the Secretary to determine whether such
property is a qualified HUD property.
``(B) Upon acquisition.--Upon acquiring any
residential property, the Secretary shall
promptly determine whether the property is a
qualified HUD property.
``(C) Updates.--The Secretary shall
periodically reassess the residential
properties owned by the Secretary to determine
whether any such properties have become
qualified HUD properties.
``(7) Tenant leases.--This subsection shall not
affect the terms or the enforceability of any contract
or lease entered into with respect to any residential
property before the date that such property becomes a
qualified HUD property.
``(8) Use of property.--Property transferred under
this subsection shall be used only for appropriate
neighborhood revitalization efforts, including
homeownership, rental units, commercial space, and
parks, consistent with local zoning regulations, local
building codes, and subdivision regulations and
restrictions of record.
``(9) Inapplicability to properties made available
for homeless.--Notwithstanding any other provision of
this subsection, this subsection shall not apply to any
properties that the Secretary determines are to be made
available for use by the homeless pursuant to subpart E
of part 291 of title 24, Code of Federal Regulations,
during the period that the properties are so available.
``(10) Protection of existing contracts.--This
subsection may not be construed to alter, affect, or
annul any legally binding obligations entered into with
respect to a qualified HUD property before the property
becomes a qualified HUD property.
``(11) Definitions.--For purposes of this
subsection, the following definitions shall apply:
``(A) Community development corporation.--
The term `community development corporation'
means a nonprofit organization whose primary
purpose is to promote community development by
providing housing opportunities for low-income
families.
``(B) Cost recovery basis.--The term `cost
recovery basis' means, with respect to any sale
of a residential property by the Secretary,
that the purchase price paid by the purchaser
is equal to or greater than the sum of: (i) the
appraised value of the property, as determined
in accordance with such requirements as the
Secretary shall establish; and (ii) the costs
incurred by the Secretary in connection with
such property during the period beginning on
the date on which the Secretary acquires title
to the property and ending on the date on which
the sale is consummated.
``(C) Multifamily housing project.--The
term `multifamily housing project' has the
meaning given the term in section 203 of the
Housing and Community Development Amendments of
1978.
``(D) Residential property.--The term
`residential property' means a property that is
a multifamily housing project or a single
family property.
``(E) Secretary.--The term `Secretary'
means the Secretary of Housing and Urban
Development.
``(F) Severe physical problems.--The term
`severe physical problems' means, with respect
to a dwelling unit, that the unit--
``(i) lacks hot or cold piped
water, a flush toilet, or both a
bathtub and a shower in the unit, for
the exclusive use of that unit;
``(ii) on not less than three
separate occasions during the preceding
winter months, was uncomfortably cold
for a period of more than 6 consecutive
hours due to a malfunction of the
heating system for the unit;
``(iii) has no functioning
electrical service, exposed wiring, any
room in which there is not a
functioning electrical outlet, or has
experienced three or more blown fuses
or tripped circuit breakers during the
preceding 90-day period;
``(iv) is accessible through a
public hallway in which there are no
working light fixtures, loose or
missing steps or railings, and no
elevator; or
``(v) has severe maintenance
problems, including water leaks
involving the roof, windows, doors,
basement, or pipes or plumbing
fixtures, holes or open cracks in walls
or ceilings, severe paint peeling or
broken plaster, and signs of rodent
infestation.
``(G) Single family property.--The term
`single family property' means a 1- to 4-family
residence.
``(H) Substandard.--The term `substandard'
means, with respect to a multifamily housing
project, that 25 percent or more of the
dwelling units in the project have severe
physical problems.
``(I) Unit of general local government.--
The term `unit of general local government' has
the meaning given such term in section 102(a)
of the Housing and Community Development Act of
1974.
``(J) Unoccupied.--The term `unoccupied'
means, with respect to a residential property,
that the unit of general local government
having jurisdiction over the area in which the
project is located has certified in writing
that the property is not inhabited.
``(12) Regulations.--
``(A) Interim.--Not later than 30 days
after the date of the enactment of this
subsection, the Secretary shall issue such
interim regulations as are necessary to carry
out this subsection.
``(B) Final.--Not later than 60 days after
the date of the enactment of this subsection,
the Secretary shall issue such final
regulations as are necessary to carry out this
subsection.''.
SEC. 142. TRANSFER OF HUD ASSETS IN REVITALIZATION AREAS.
In carrying out the program under section 204(h) of the
National Housing Act (12 U.S.C. 1710(h)), upon the request of
the chief executive officer of a county or the government of
appropriate jurisdiction and not later than 60 days after such
request is made, the Secretary of Housing and Urban Development
shall designate as a revitalization area all portions of such
county that meet the criteria for such designation under
paragraph (3) of such section.
SEC. 143. RISK-SHARING DEMONSTRATION.
Section 249 of the National Housing Act (12 U.S.C. 1715z-
14) is amended--
(1) by striking the section heading and inserting
the following:
``risk-sharing demonstration'';
(2) by striking ``reinsurance'' each place such
term appears and insert ``risk-sharing'';
(3) in subsection (a)--
(A) in the first sentence, by inserting
``and with insured community development
financial institutions'' after ``private
mortgage insurers'';
(B) in the second sentence--
(i) by striking ``two'' and
inserting ``four''; and
(ii) by striking ``March 15, 1988''
and inserting ``the expiration of the
5-year period beginning on the date of
the enactment of the Community Renewal
Tax Relief Act of 2000''; and
(C) in the third sentence--
(i) by striking ``insured'' and
inserting ``for which risk of
nonpayment is shared''; and
(ii) by striking ``10 percent'' and
inserting ``20 percent'';
(4) in subsection (b)--
(A) in the first sentence--
(i) by striking ``to provide'' and
inserting ``, in providing'';
(ii) by striking ``through'' and
inserting ``, to enter into''; and
(iii) by inserting ``and with
insured community development financial
institutions'' before the period at the
end;
(B) in the second sentence, by inserting
``and insured community development financial
institutions'' after ``private mortgage
insurance companies'';
(C) by striking paragraph (1) and inserting
the following new paragraph:
``(1) assume a secondary percentage of loss on any
mortgage insured pursuant to section 203(b), 234, or
245 covering a one- to four-family dwelling, which
percentage of loss shall be set forth in the risk-
sharing contract, with the first percentage of loss to
be borne by the Secretary;''; and
(D) in paragraph (2)--
(i) by striking ``carry out (under
appropriate delegation) such'' and
inserting ``perform or delegate
underwriting,'';
(ii) by striking ``function as the
Secretary pursuant to regulations,''
and inserting ``functions as the
Secretary''; and
(iii) by inserting before the
period at the end the following: ``and
shall set forth in the risk-sharing
contract'';
(5) in subsection (c)--
(A) in the first sentence--
(i) by striking ``of'' the first
place it appears and inserting ``for'';
(ii) by inserting ``received by the
Secretary with a private mortgage
insurer or insured community
development financial institution''
after ``sharing of premiums'';
(iii) by striking ``insurance
reserves'' and inserting ``loss
reserves'';
(iv) by striking ``such insurance''
and inserting ``such risk-sharing
contract''; and
(v) by striking ``right'' and
inserting ``rights''; and
(B) in the second sentence--
(i) by inserting ``or insured
community development financial
institution'' after ``private mortgage
insurance company''; and
(ii) by striking ``for insurance''
and inserting ``for risk-sharing'';
(6) in subsection (d), by inserting ``or insured
community development financial institution'' after
``private mortgage insurance company''; and
(7) by adding at the end the following new
subsection:
``(e) Insured Community Development Financial
Institution.--For purposes of this section, the term `insured
community development financial institution' means a community
development financial institution, as such term is defined in
section 103 of Reigle Community Development and Regulatory
Improvement Act of 1994 (12 U.S.C. 4702) that is an insured
depository institution (as such term is defined in section 3 of
the Federal Deposit Insurance Act (12 U.S.C. 1813)) or an
insured credit union (as such term is defined in section 101 of
the Federal Credit Union Act (12 U.S.C. 1752)).''.
SEC. 144. PREVENTION AND TREATMENT OF SUBSTANCE ABUSE; SERVICES
PROVIDED THROUGH RELIGIOUS ORGANIZATIONS.
Title V of the Public Health Service Act (42 U.S.C. 290aa
et seq.) is amended by adding at the end the following part:
``Part G--Services Provided Through Religious Organizations
``SEC. 581. APPLICABILITY TO DESIGNATED PROGRAMS.
``(a) Designated Programs.--Subject to subsection (b), this
part applies to discretionary and formula grant programs
administered by the Substance Abuse and Mental Health Services
Administration that make awards of financial assistance to
public or private entities for the purpose of carrying out
activities to prevent or treat substance abuse (in this part
referred to as a `designated program'). Designated programs
include the program under subpart II of part B of title XIX
(relating to formula grants to the States).
``(b) Limitation.--This part does not apply to any award of
financial assistance under a designated program for a purpose
other than the purpose specified in subsection (a).
``(c) Definitions.--For purposes of this part (and subject
to subsection (b)):
``(1) The term `designated program' has the meaning
given such term in subsection (a).
``(2) The term `financial assistance' means a
grant, cooperative agreement, or contract.
``(3) The term `program beneficiary' means an
individual who receives program services.
``(4) The term `program participant' means a public
or private entity that has received financial
assistance under a designated program.
``(5) The term `program services' means treatment
for substance abuse, or preventive services regarding
such abuse, provided pursuant to an award of financial
assistance under a designated program.
``(6) The term `religious organization' means a
nonprofit religious organization.
``SEC. 582. RELIGIOUS ORGANIZATIONS AS PROGRAM PARTICIPANTS.
``(a) In General.--Notwithstanding any other provision of
law, a religious organization, on the same basis as any other
nonprofit private provider--
``(1) may receive financial assistance under a
designated program; and
``(2) may be a provider of services under a
designated program.
``(b) Religious Organizations.--The purpose of this section
is to allow religious organizations to be program participants
on the same basis as any other nonprofit private provider
without impairing the religious character of such
organizations, and without diminishing the religious freedom of
program beneficiaries.
``(c) Nondiscrimination Against Religious Organizations.--
``(1) Eligibility as program participants.--
Religious organizations are eligible to be program
participants on the same basis as any other nonprofit
private organization as long as the programs are
implemented consistent with the Establishment Clause
and Free Exercise Clause of the First Amendment to the
United States Constitution. Nothing in this Act shall
be construed to restrict the ability of the Federal
Government, or a State or local government receiving
funds under such programs, to apply to religious
organizations the same eligibility conditions in
designated programs as are applied to any other
nonprofit private organization.
``(2) Nondiscrimination.--Neither the Federal
Government nor a State or local government receiving
funds under designated programs shall discriminate
against an organization that is or applies to be a
program participant on the basis that the organization
has a religious character.
``(d) Religious Character and Freedom.--
``(1) Religious organizations.--Except as provided
in this section, any religious organization that is a
program participant shall retain its independence from
Federal, State, and local government, including such
organization's control over the definition,
development, practice, and expression of its religious
beliefs.
``(2) Additional safeguards.--Neither the Federal
Government nor a State shall require a religious
organization to--
``(A) alter its form of internal
governance; or
``(B) remove religious art, icons,
scripture, or other symbols,
in order to be a program participant.
``(e) Employment Practices.--Nothing in this section shall
be construed to modify or affect the provisions of any other
Federal or State law or regulation that relates to
discrimination in employment. A religious organization's
exemption provided under section 702 of the Civil Rights Act of
1964 regarding employment practices shall not be affected by
its participation in, or receipt of funds from, a designated
program.
``(f) Rights of Program Beneficiaries.--
``(1) In general.--If an individual who is a
program beneficiary or a prospective program
beneficiary objects to the religious character of a
program participant, within a reasonable period of time
after the date of such objection such program
participant shall refer such individual to, and the
appropriate Federal, State, or local government that
administers a designated program or is a program
participant shall provide to such individual (if
otherwise eligible for such services), program services
that--
``(A) are from an alternative provider that
is accessible to, and has the capacity to
provide such services to, such individual; and
``(B) have a value that is not less than
the value of the services that the individual
would have received from the program
participant to which the individual had such
objection.
Upon referring a program beneficiary to an alternative
provider, the program participant shall notify the
appropriate Federal, State, or local government agency
that administers the program of such referral.
``(2) Notices.--Program participants, public
agencies that refer individuals to designated programs,
and the appropriate Federal, State, or local
governments that administer designated programs or are
program participants shall ensure that notice is
provided to program beneficiaries or prospective
program beneficiaries of their rights under this
section.
``(3) Additional requirements.--A program
participant making a referral pursuant to paragraph (1)
shall--
``(A) prior to making such referral,
consider any list that the State or local
government makes available of entities in the
geographic area that provide program services;
and
``(B) ensure that the individual makes
contact with the alternative provider to which
the individual is referred.
``(4) Nondiscrimination.--A religious organization
that is a program participant shall not in providing
program services or engaging in outreach activities
under designated programs discriminate against a
program beneficiary or prospective program beneficiary
on the basis of religion or religious belief.
``(g) Fiscal Accountability.--
``(1) In general.--Except as provided in paragraph
(2), any religious organization that is a program
participant shall be subject to the same regulations as
other recipients of awards of Federal financial
assistance to account, in accordance with generally
accepted auditing principles, for the use of the funds
provided under such awards.
``(2) Limited audit.--With respect to the award
involved, a religious organization that is a program
participant shall segregate Federal amounts provided
under award into a separate account from non-Federal
funds. Only the award funds shall be subject to audit
by the government.
``(h) Compliance.--With respect to compliance with this
section by an agency, a religious organization may obtain
judicial review of agency action in accordance with chapter 7
of title 5, United States Code.
``SEC. 583. LIMITATIONS ON USE OF FUNDS FOR CERTAIN PURPOSES.
``No funds provided under a designated program shall be
expended for sectarian worship, instruction, or
proselytization.
``SEC. 584. EDUCATIONAL REQUIREMENTS FOR PERSONNEL IN DRUG TREATMENT
PROGRAMS.
``(a) Findings.--The Congress finds that--
``(1) establishing unduly rigid or uniform
educational qualification for counselors and other
personnel in drug treatment programs may undermine the
effectiveness of such programs; and
``(2) such educational requirements for counselors
and other personnel may hinder or prevent the provision
of needed drug treatment services.
``(b) Nondiscrimination.--In determining whether personnel
of a program participant that has a record of successful drug
treatment for the preceding three years have satisfied State or
local requirements for education and training, a State or local
government shall not discriminate against education and
training provided to such personnel by a religious
organization, so long as such education and training includes
basic content substantially equivalent to the content provided
by nonreligious organizations that the State or local
government would credit for purposes of determining whether the
relevant requirements have been satisfied.''.
PART II--ADVISORY COUNCIL ON COMMUNITY RENEWAL
SEC. 151. SHORT TITLE.
This part may be cited as the ``Advisory Council on
Community Renewal Act''.
SEC. 152. ESTABLISHMENT.
There is established an advisory council to be known as the
``Advisory Council on Community Renewal'' (in this part
referred to as the ``Advisory Council'').
SEC. 153. DUTIES OF ADVISORY COUNCIL.
The Advisory Council shall advise the Secretary of Housing
and Urban Development (in this part referred to as the
``Secretary'') on the designation of renewal communities
pursuant to the amendment made by section 101 and on the
exercise of any other authority granted to the Secretary
pursuant to the amendments made by this title.
SEC. 154. MEMBERSHIP.
(a) Number and Appointment.--The Advisory Council shall be
composed of 7 members appointed by the Secretary.
(b) Chairperson.--The Chairperson of the Advisory Council
(in this part referred to as the ``Chairperson'') shall be
designated by the Secretary at the time of the appointment.
(c) Terms.--Each member shall be appointed for the life of
the Advisory Council.
(d) Basic Pay.--
(1) Chairperson.--The Chairperson shall be paid at
a rate equal to the daily rate of basic pay for level
III of the Executive Schedule for each day (including
travel time) during which the Chairperson is engaged in
the actual performance of duties vested in the Advisory
Council.
(2) Other members.--Members other than the
Chairperson shall each be paid at a rate equal to the
daily rate of basic pay for level IV of the Executive
Schedule for each day (including travel time) during
which they are engaged in the actual performance of
duties vested in the Advisory Council.
(e) Travel Expenses.--Each member shall receive travel
expenses, including per diem in lieu of subsistence, in
accordance with applicable provisions under subchapter I of
chapter 57 of title 5, United States Code.
(f) Quorum.--Four members of the Advisory Council shall
constitute a quorum but a lesser number may hold hearings.
(g) Meetings.--The Advisory Council shall meet at the call
of the Secretary or the Chairperson.
SEC. 155. POWERS OF ADVISORY COUNCIL.
(a) Hearings and Sessions.--The Advisory Council may, for
the purpose of carrying out this part, hold hearings, sit and
act at times and places, take testimony, and receive evidence
as the Advisory Council considers appropriate. The Advisory
Council may administer oaths or affirmations to witnesses
appearing before it.
(b) Powers of Members and Agents.--Any member or agent of
the Advisory Council may, if authorized by the Advisory
Council, take any action which the Advisory Council is
authorized to take by this section.
(c) Obtaining Official Data.--The Advisory Council may
secure directly from any department or agency of the United
States information necessary to enable it to carry out this
part. Upon request of the Chairperson of the Advisory Council,
the head of that department or agency shall furnish that
information to the Advisory Council.
SEC. 156. REPORTS.
(a) Annual Reports.--The Advisory Council shall submit to
the Secretary an annual report for each fiscal year.
(b) Interim Reports.--The Advisory Council may submit to
the Secretary such interim reports as the Advisory Council
considers appropriate.
(c) Final Report.--The Advisory Council shall transmit a
final report to the Secretary not later September 30, 2003. The
final report shall contain a detailed statement of the findings
and conclusions of the Advisory Council, together with any
recommendations for legislative or administrative action that
the Advisory Council considers appropriate.
SEC. 157. TERMINATION.
(a) In General.--The Advisory Council shall terminate 30
days after submitting its final report under section 156(c).
(b) Extension.--Notwithstanding subsection (a), the
Secretary may postpone the termination of the Advisory Council
for a period not to exceed 3 years after the Advisory Council
submits its final report under section 156(c).
SEC. 158. APPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT.
The Federal Advisory Committee Act (5 U.S.C. App.) shall
not apply to the Advisory Council.
SEC. 159. RESOURCES.
The Secretary shall provide to the Advisory Council
appropriate resources so that the Advisory Council may carry
out its duties and functions under this part.
SEC. 160. EFFECTIVE DATE.
This part shall be effective 30 days after the date of its
enactment.
Subtitle F--Other Provisions
SEC. 161. ACCELERATION OF PHASE-IN OF INCREASE IN VOLUME CAP ON PRIVATE
ACTIVITY BONDS.
(a) In General.--Paragraphs (1) and (2) of section 146(d)
(relating to State ceiling) are amended to read as follows:
``(1) In general.--The State ceiling applicable to
any State for any calendar year shall be the greater
of--
``(A) an amount equal to $75 ($62.50 in the
case of calendar year 2001) multiplied by the
State population, or
``(B) $225,000,000 ($187,500,000 in the
case of calendar year 2001).
``(2) Cost-of-living adjustment.--In the case of a
calendar year after 2002, each of the dollar amounts
contained in paragraph (1) shall be increased by an
amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment
determined under section 1(f)(3) for such
calendar year by substituting `calendar year
2001' for `calendar year 1992' in subparagraph
(B) thereof.
If any increase determined under the preceding sentence
is not a multiple of $5 ($5,000 in the case of the
dollar amount in paragraph (1)(B)), such increase shall
be rounded to the nearest multiple thereof.''.
(b) Effective Date.--The amendment made by this section
shall apply to calendar years after 2000.
SEC. 162. MODIFICATIONS TO EXPENSING OF ENVIRONMENTAL REMEDIATION
COSTS.
(a) Expensing Not Limited to Sites in Targeted Areas.--
Subsection (c) of section 198 is amended to read as follows:
``(c) Qualified Contaminated Site.--For purposes of this
section--
``(1) In general.--The term `qualified contaminated
site' means any area--
``(A) which is held by the taxpayer for use
in a trade or business or for the production of
income, or which is property described in
section 1221(a)(1) in the hands of the
taxpayer, and
``(B) at or on which there has been a
release (or threat of release) or disposal of
any hazardous substance.
``(2) National priorities listed sites not
included.--Such term shall not include any site which
is on, or proposed for, the national priorities list
under section 105(a)(8)(B) of the Comprehensive
Environmental Response, Compensation, and Liability Act
of 1980 (as in effect on the date of the enactment of
this section).
``(3) Taxpayer must receive statement from state
environmental agency.--An area shall be treated as a
qualified contaminated site with respect to
expenditures paid or incurred during any taxable year
only if the taxpayer receives a statement from the
appropriate agency of the State in which such area is
located that such area meets the requirement of
paragraph (1)(B).
``(4) Appropriate state agency.--For purposes of
paragraph (3), the chief executive officer of each
State may, in consultation with the Administrator of
the Environmental Protection Agency, designate the
appropriate State environmental agency within 60 days
of the date of the enactment of this section. If the
chief executive officer of a State has not designated
an appropriate environmental agency within such 60-day
period, the appropriate environmental agency for such
State shall be designated by the Administrator of the
Environmental Protection Agency.''.
(b) Extension of Termination Date.--Subsection (h) of
section 198 is amended by striking ``2001'' and inserting
``2003''.
(c) Effective Date.--The amendments made by this section
shall apply to expenditures paid or incurred after the date of
the enactment of this Act.
SEC. 163. EXTENSION OF DC HOMEBUYER TAX CREDIT.
Section 1400C(i) (relating to application of section) is
amended by striking ``2002'' and inserting ``2004''.
SEC. 164. EXTENSION OF DC ZONE THROUGH 2003.
(a) In General.--The following provisions are amended by
striking ``2002'' each place it appears and inserting ``2003'':
(1) Section 1400(f).
(2) Section 1400A(b).
(b) Zero Capital Gains Rate.--Section 1400B (relating to
zero percent capital gains rate) is amended--
(1) by striking ``2003'' each place it appears and
inserting ``2004'', and
(2) by striking ``2007'' each place it appears and
inserting ``2008''.
SEC. 165. EXTENSION OF ENHANCED DEDUCTION FOR CORPORATE DONATIONS OF
COMPUTER TECHNOLOGY.
(a) Expansion of Computer Technology Donations to Public
Libraries.--
(1) In general.--Paragraph (6) of section 170(e)
(relating to special rule for contributions of computer
technology and equipment for elementary or secondary
school purposes) is amended by striking ``qualified
elementary or secondary educational contribution'' each
place it occurs in the headings and text and inserting
``qualified computer contribution''.
(2) Expansion of eligible donees.--Clause (i) of
section 170(e)(6)(B) (relating to qualified elementary
or secondary educational contribution) is amended by
striking ``or'' at the end of subclause (I), by adding
``or'' at the end of subclause (II), and by inserting
after subclause (II) the following new subclause:
``(III) a public library
(within the meaning of section
213(2)(A) of the Library
Services and Technology Act (20
U.S.C. 9122(2)(A)), as in
effect on the date of the
enactment of the Community
Renewal Tax Relief Act of 2000,
established and maintained by
an entity described in
subsection (c)(1),''.
(3) Extension of donation period.--Clause (ii) of
section 170(e)(6)(B) is amended by striking ``2 years''
and inserting ``3 years''.
(b) Conforming Amendments.--
(1) Section 170(e)(6)(B)(iv) is amended by striking
``in any grades of the K-12''.
(2) The heading of paragraph (6) of section 170(e)
is amended by striking ``elementary or secondary school
purposes'' and inserting ``educational purposes''.
(c) Extension of Deduction.--Section 170(e)(6)(F) (relating
to termination) is amended by striking ``December 31, 2000''
and inserting ``December 31, 2003''.
(d) Standards as to Functionality and Suitability.--
Subparagraph (B) of section 170(e)(6) is amended by striking
``and'' at the end of clause (vi), by striking the period at
the end of clause (vii) and inserting ``, and'', and by adding
at the end the following new clause:
``(viii) the property meets such
standards, if any, as the Secretary may
prescribe by regulation to assure that
the property meets minimum
functionality and suitability standards
for educational purposes.''
(e) Donations of Computers Reacquired by Manufacturer.--
Paragraph (6) of section 170(e) is further amended by
redesignating subparagraphs (D), (E), and (F) as subparagraphs
(E), (F), and (G), respectively, and by inserting after
subparagraph (C) the following new subparagraph:
``(D) Donations of property reacquired by
manufacturer.--In the case of property which is
reacquired by the person who constructed the
property--
``(i) subparagraph (B)(ii) shall be
applied to a contribution of such
property by such person by taking into
account the date that the original
construction of the property was
substantially completed, and
``(ii) subparagraph (B)(iii) shall
not apply to such contribution.''
(f) Effective Date.--The amendments made by this section
shall apply to contributions made after December 31, 2000.
SEC. 166. TREATMENT OF INDIAN TRIBAL GOVERNMENTS UNDER FEDERAL
UNEMPLOYMENT TAX ACT.
(a) In General.--Section 3306(c)(7) (defining employment)
is amended--
(1) by inserting ``or in the employ of an Indian
tribe,'' after ``service performed in the employ of a
State, or any political subdivision thereof,''; and
(2) by inserting ``or Indian tribes'' after
``wholly owned by one or more States or political
subdivisions''.
(b) Payments in Lieu of Contributions.--Section 3309
(relating to State law coverage of services performed for
nonprofit organizations or governmental entities) is amended--
(1) in subsection (a)(2) by inserting ``, including
an Indian tribe,'' after ``the State law shall provide
that a governmental entity'';
(2) in subsection (b)(3)(B) by inserting ``, or of
an Indian tribe'' after ``of a State or political
subdivision thereof'';
(3) in subsection (b)(3)(E) by inserting ``or
tribal'' after ``the State''; and
(4) in subsection (b)(5) by inserting ``or of an
Indian tribe'' after ``an agency of a State or
political subdivision thereof''.
(c) State Law Coverage.--Section 3309 (relating to State
law coverage of services performed for nonprofit organizations
or governmental entities) is amended by adding at the end the
following new subsection:
``(d) Election by Indian Tribe.--The State law shall
provide that an Indian tribe may make contributions for
employment as if the employment is within the meaning of
section 3306 or make payments in lieu of contributions under
this section, and shall provide that an Indian tribe may make
separate elections for itself and each subdivision, subsidiary,
or business enterprise wholly owned by such Indian tribe. State
law may require a tribe to post a payment bond or take other
reasonable measures to assure the making of payments in lieu of
contributions under this section. Notwithstanding the
requirements of section 3306(a)(6), if, within 90 days of
having received a notice of delinquency, a tribe fails to make
contributions, payments in lieu of contributions, or payment of
penalties or interest (at amounts or rates comparable to those
applied to all other employers covered under the State law)
assessed with respect to such failure, or if the tribe fails to
post a required payment bond, then service for the tribe shall
not be excepted from employment under section 3306(c)(7) until
any such failure is corrected. This subsection shall apply to
an Indian tribe within the meaning of section 4(e) of the
Indian Self-Determination and Education Assistance Act (25
U.S.C. 450b(e)).''.
(d) Definitions.--Section 3306 (relating to definitions) is
amended by adding at the end the following new subsection:
``(u) Indian Tribe.--For purposes of this chapter, the term
`Indian tribe' has the meaning given to such term by section
4(e) of the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 450b(e)), and includes any subdivision,
subsidiary, or business enterprise wholly owned by such an
Indian tribe.''.
(e) Effective Date; Transition Rule.--
(1) Effective date.--The amendments made by this
section shall apply to service performed on or after
the date of the enactment of this Act.
(2) Transition rule.--For purposes of the Federal
Unemployment Tax Act, service performed in the employ
of an Indian tribe (as defined in section 3306(u) of
the Internal Revenue Code of 1986 (as added by this
section)) shall not be treated as employment (within
the meaning of section 3306 of such Code) if--
(A) it is service which is performed before
the date of the enactment of this Act and with
respect to which the tax imposed under the
Federal Unemployment Tax Act has not been paid,
and
(B) such Indian tribe reimburses a State
unemployment fund for unemployment benefits
paid for service attributable to such tribe for
such period.
TITLE II--2-YEAR EXTENSION OF AVAILABILITY OF MEDICAL SAVINGS ACCOUNTS
SEC. 201. 2-YEAR EXTENSION OF AVAILABILITY OF MEDICAL SAVINGS ACCOUNTS.
(a) In General.--Paragraphs (2) and (3)(B) of section
220(i) (defining cut-off year) are each amended by striking
``2000'' each place it appears and inserting ``2002''.
(b) Conforming Amendments.--
(1) Paragraph (2) of section 220(j) is amended--
(A) by striking ``1998 or 1999'' each place
it appears and inserting ``1998, 1999, or
2001'',
(B) by striking ``600,000 (750,000 in the
case of 1999)'' and inserting ``750,000
(600,000 in the case of 1998)'', and
(C) by inserting after subparagraph (B) the
following new subparagraph:
``(C) No limitation for 2000.--The
numerical limitation shall not apply for
2000.''
(2) Subparagraph (A) of section 220(j)(4) is
amended by striking ``and 1999'' and inserting ``1999,
and 2001''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 202. MEDICAL SAVINGS ACCOUNTS RENAMED AS ARCHER MSAS.
(a) In General.--The following provisions are amended by
striking ``medical savings account'' each place it appears in
the text and inserting ``Archer MSA'':
(1) Section 26(b)(2)(Q).
(2) Section 106(b).
(3) Section 138(b).
(4) Section 220.
(5) Section 848(e)(1)(B)(iv).
(6) Subsections (a)(2) and (d) of section 4973.
(7) Subsections (c)(4) and (e)(1)(D) of section
4975.
(8) Subsections (a) and (d)(2)(B) of section 4980E.
(9) Section 6051(a)(11).
(b) Other Amendments.--
(1) Paragraph (16) of section 62(a) is amended to
read as follows:
``(16) Archer msas.--The deduction allowed by
section 220.''
(2) The following provisions are each amended by
striking ``medical savings accounts'' each place it
appears in the text and inserting ``Archer MSAs'':
(A) Paragraphs (4) and (7) of section
106(b).
(B) Subsections (c)(1)(D), (e)(2),
(f)(3)(A), (i)(4)(B), and (j) of section 220.
(C) Section 4973(d).
(D) Subsections (b) and (d)(1) of section
4980E.
(E) Section 6693(a)(2)(B).
(3) Paragraph (1) of section 220(d) is amended by
inserting ``as a medical savings account'' after
``United States''.
(4) The heading for section 220(d) is amended by
striking ``Medical Savings Account'' and inserting
``Archer MSA''.
(5) The headings for sections 220(d)(1) and
3231(e)(10) are each amended by striking ``Medical
savings account'' and inserting ``Archer msas''.
(6) The headings for sections 106(b), 138(f),
220(i), and 4973(d) are each amended by striking
``Medical Savings Accounts'' and inserting ``Archer
MSAs''.
(7) The headings for section 220(c)(1)(C) and
4975(c)(4) are each amended by striking ``medical
savings accounts'' and inserting ``archer msas''.
(8) The section heading for section 220 is amended
to read as follows:
``SEC. 220. ARCHER MSAS.''
(9) The item relating to section 220 in the table
of sections for part VII of subchapter B of chapter 1
is amended to read as follows:
``Sec. 220. Archer MSAs.''
(10) The provisions amended by the preceding
provisions of this section are further amended by
striking ``a Archer'' each place it appears and
inserting ``an Archer''.
(11) Section 220(e)(1) is further amended by
striking ``A Archer'' and inserting ``An Archer''.
TITLE III--ADMINISTRATIVE AND TECHNICAL PROVISIONS
Subtitle A--Administrative Provisions
SEC. 301. EXEMPTION OF CERTAIN REPORTING REQUIREMENTS.
Section 3003(a)(1) of the Federal Reports Elimination and
Sunset Act of 1995 (31 U.S.C. 1113 note) shall not apply to any
report required to be submitted under any of the following
provisions of law:
(1) Section 13031(f) of the Consolidated Omnibus
Budget Reconciliation Act of 1985 (19 U.S.C. 58c(f)).
(2) Section 16(c) of the Foreign Trade Zones Act
(19 U.S.C. 81p(c)).
(3) The following provisions of the Tariff Act of
1930:
(A) Section 330(c)(1) (19 U.S.C.
1330(c)(1)).
(B) Section 607(c) (19 U.S.C. 1607(c)).
(4) Section 5 of the International Coffee Agreement
Act of 1980 (19 U.S.C. 1356n).
(5) Section 351(a)(2) of the Trade Expansion Act of
1962 (19 U.S.C. 1981(a)(2)).
(6) Section 502 of the Automotive Products Trade
Act of 1965 (19 U.S.C. 2032).
(7) Section 3131 of the Customs Enforcement Act of
1986 (19 U.S.C. 2081).
(8) The following provisions of the Trade Act of
1974 (19 U.S.C. 2101 et seq.):
(A) Section 102(b)(4)(A)(ii)(I) (19 U.S.C.
2112(b)(4)(A)(ii)(I)).
(B) Section 102(e)(1) (19 U.S.C.
2112(e)(1)).
(C) Section 102(e)(2) (19 U.S.C.
2112(e)(2)).
(D) Section 104(d) (19 U.S.C. 2114(d)).
(E) Section 125(e) (19 U.S.C. 2135(e)).
(F) Section 135(e)(1) (19 U.S.C.
2155(e)(1)).
(G) Section 141(c) (19 U.S.C. 2171(c)).
(H) Section 162 (19 U.S.C. 2212).
(I) Section 163(b) (19 U.S.C. 2213(b)).
(J) Section 163(c) (19 U.S.C. 2213(c)).
(K) Section 203(b) (19 U.S.C. 2253(b)).
(L) Section 302(b)(2)(C) (19 U.S.C.
2412(b)(2)(C)).
(M) Section 303 (19 U.S.C. 2413).
(N) Section 309 (19 U.S.C. 2419).
(O) Section 407(a) (19 U.S.C. 2437(a)).
(P) Section 502(f) (19 U.S.C. 2462(f)).
(Q) Section 504 (19 U.S.C. 2464).
(9) The following provisions of the Trade
Agreements Act of 1979 (19 U.S.C. 2501 et seq.):
(A) Section 2(b) (19 U.S.C. 2503(b)).
(B) Section 3(c) (19 U.S.C. 2504(c)).
(C) Section 305(c) (19 U.S.C. 2515(c)).
(10) Section 303(g)(1) of the Convention on
Cultural Property Implementation Act (19 U.S.C.
2602(g)(1)).
(11) The following provisions of the Caribbean
Basin Economic Recovery Act (19 U.S.C. 2701 et seq.):
(A) Section 212(a)(1)(A) (19 U.S.C.
2702(a)(1)(A)).
(B) Section 212(a)(2) (19 U.S.C.
2702(a)(2)).
(12) The following provisions of the Omnibus Trade
and Competitiveness Act of 1988 (19 U.S.C. 2901 et
seq.):
(A) Section 1102 (19 U.S.C. 2902).
(B) Section 1103 (19 U.S.C. 2903).
(C) Section 1206(b) (19 U.S.C. 3006(b)).
(13) Section 123(a) of the Customs and Trade Act of
1990 (Public Law 101-382) (19 U.S.C. 2083).
(14) Section 243(b)(2) of the Caribbean Basin
Economic Recovery Expansion Act of 1990 (Public Law
101-382).
(15) The following provisions of the Internal
Revenue Code of 1986:
(A) Section 6103(p)(5).
(B) Section 7608.
(C) Section 7802(f)(3).
(D) Section 8022(3).
(E) Section 9602(a).
(16) The following provisions relating to the
revenue laws of the United States:
(A) Section 1552(c) of the Tax Reform Act
of 1986 (100 Stat. 2753).
(B) Section 231 of the Deficit Reduction
Act of 1984 (26 U.S.C. 801 note).
(C) Section 208 of the Tax Treatment
Extension Act of 1977 (26 U.S.C. 911 note).
(D) Section 7105 of the Technical and
Miscellaneous Revenue Act of 1988 (45 U.S.C.
369).
(17) Section 4008 of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1308).
(18) Section 426 of the Black Lung Benefits Act (30
U.S.C. 936(b)).
(19) Section 7502(g) of title 31, United States
Code.
(20) The following provisions of the Social
Security Act:
(A) Section 215(i)(2)(C)(i) (42 U.S.C.
415(i)(2)(C)(i)).
(B) Section 221(i)(2) (42 U.S.C.
421(i)(2)).
(C) Section 221(i)(3) (42 U.S.C.
421(i)(3)).
(D) Section 233(e)(1) (42 U.S.C.
433(e)(1)).
(E) Section 452(a)(10) (42 U.S.C.
652(a)(10)).
(F) Section 452(g)(3)(B) (42 U.S.C.
652(g)(3)(B)).
(G) Section 506(a)(1) (42 U.S.C. 706(a)).
(H) Section 908 (42 U.S.C. 1108).
(I) Section 1114(f) (42 U.S.C. 1314(f)).
(J) Section 1120 (42 U.S.C. 1320).
(K) Section 1161 (42 U.S.C. 1320c-10).
(L) Section 1875(b) (42 U.S.C. 1395ll(b)).
(M) Section 1881 (42 U.S.C. 1395rr).
(N) Section 1882 (42 U.S.C. 1395ss(f)(2)).
(21) Section 104(b) of the Social Security
Independence and Program Improvements Act of 1994 (42
USC 904 note).
(22) Section 10 of the Railroad Retirement Act of
1937 (45 U.S.C. 231f).
(23) The following provisions of the Railroad
Retirement Act of 1974:
(A) Section 22(a)(1) (45 U.S.C.
231u(a)(1)).
(B) Section 22(b)(1) (45 U.S.C.
231u(b)(1)).
(24) Section 502 of the Railroad Retirement
Solvency Act of 1983 (45 U.S.C. 231f-1).
(25) Section 47121(c) of title 49, United States
Code.
(26) The following provisions of the Omnibus Budget
Reconciliation Act of 1987 (Public Law 100-203; 101
Stat. 1330-182):
(A) Section 4007(c)(4) (42 U.S.C. 1395ww
note).
(B) Section 4079 (42 U.S.C. 1395mm note).
(C) Section 4205 (42 U.S.C. 1395i-3 note).
(D) Section 4215 (42 U.S.C. 1396r note).
(27) The following provisions of the Inspector
General Act of 1978 (Public Law 95-452):
(A) Section 5(b).
(B) Section 5(d).
(28) The following provisions of the Public Health
Service Act:
(A) In section 308(a) (42 U.S.C. 242m(a)),
subparagraphs (A), (B), (C), and (D) of
paragraph (1).
(B) Section 403 (42 U.S.C. 283).
(29) Section 404 of the Health Services and Centers
Amendments of 1978 (42 U.S.C. 242p) (Public Law 95-
626).
(30) The following provisions of the Older
Americans Act of 1965:
(A) Section 206(d) (42 U.S.C. 3017(d)).
(B) Section 207 (42 U.S.C. 3018).
(31) Section 308 of the Age Discrimination Act of
1975 (42 U.S.C. 6106a(b)).
(32) Section 509(c)(3) of the Americans with
Disabilities Act 0f 1990 (42 U.S.C. 12209(c)(3)).
(33) Section 4207(f) of the Omnibus Budget
Reconciliation Act of 1990 (42 U.S.C. 1395b-1 note).
SEC. 302. EXTENSION OF DEADLINES FOR IRS COMPLIANCE WITH CERTAIN NOTICE
REQUIREMENTS.
(a) Annual Installment Agreement Notice.--Section 3506 of
the Internal Revenue Service Restructuring and Reform Act of
1998 is amended by striking ``July 1, 2000'' and inserting
``September 1, 2001''.
(b) Notice Requirements Relating to Computation of
Penalty.--Subsection (c) of section 3306 of the Internal
Revenue Service Restructuring and Reform Act of 1998 is
amended--
(1) by striking ``December 31, 2000'' and inserting
``June 30, 2001'', and
(2) by adding at the end the following: ``In the
case of any notice of penalty issued after June 30,
2001, and before July 1, 2003, the requirements of
section 6751(a) of the Internal Revenue Code of 1986
shall be treated as met if such notice contains a
telephone number at which the taxpayer can request a
copy of the taxpayer's assessment and payment history
with respect to such penalty.''.
(c) Notice Requirements Relating to Interest Imposed.--
Subsection (c) of section 3308 of the Internal Revenue Service
Restructuring and Reform Act of 1998 is amended--
(1) by striking ``December 31, 2000'' and inserting
``June 30, 2001'', and
(2) by adding at the end the following: ``In the
case of any notice issued after June 30, 2001, and
before July 1, 2003, to which section 6631 of the
Internal Revenue Code of 1986 applies, the requirements
of section 6631 of such Code shall be treated as met if
such notice contains a telephone number at which the
taxpayer can request a copy of the taxpayer's payment
history relating to interest amounts included in such
notice.''.
SEC. 303. EXTENSION OF AUTHORITY FOR UNDERCOVER OPERATIONS.
Paragraph (6), and the last sentence, of section 7608(c)
are each amended by striking ``January 1, 2001'' and inserting
``January 1, 2006''.
SEC. 304. CONFIDENTIALITY OF CERTAIN DOCUMENTS RELATING TO CLOSING AND
SIMILAR AGREEMENTS AND TO AGREEMENTS WITH FOREIGN
GOVERNMENTS.
(a) Closing and Similar Agreements Treated As Return
Information.--Paragraph (2) of section 6103(b) (defining return
information) is amended by striking ``and'' at the end of
subparagraph (B), by inserting ``and'' at the end of
subparagraph (C), and by inserting after subparagraph (C) the
following new subparagraph:
``(D) any agreement under section 7121, and
any similar agreement, and any background
information related to such an agreement or
request for such an agreement,''.
(b) Agreements With Foreign Governments.--
(1) In general.--Subchapter B of chapter 61
(relating to miscellaneous provisions) is amended by
inserting after section 6104 the following new section:
``SEC. 6105. CONFIDENTIALITY OF INFORMATION ARISING UNDER TREATY
OBLIGATIONS.
``(a) In General.--Tax convention information shall not be
disclosed.
``(b) Exceptions.--Subsection (a) shall not apply--
``(1) to the disclosure of tax convention
information to persons or authorities (including courts
and administrative bodies) which are entitled to such
disclosure pursuant to a tax convention,
``(2) to any generally applicable procedural rules
regarding applications for relief under a tax
convention, or
``(3) in any case not described in paragraphs (1)
or (2), to the disclosure of any tax convention
information not relating to a particular taxpayer if
the Secretary determines, after consultation with each
other party to the tax convention, that such disclosure
would not impair tax administration.
``(c) Definitions.--For purposes of this section--
``(1) Tax convention information.--The term `tax
convention information' means any--
``(A) agreement entered into with the
competent authority of one or more foreign
governments pursuant to a tax convention,
``(B) application for relief under a tax
convention,
``(C) any background information related to
such agreement or application,
``(D) document implementing such agreement,
and
``(E) any other information exchanged
pursuant to a tax convention which is treated
as confidential or secret under the tax
convention.
``(2) Tax convention.--The term `tax convention'
means--
``(A) any income tax or gift and estate tax
convention, or
``(B) any other convention or bilateral
agreement (including multilateral conventions
and agreements and any agreement with a
possession of the United States) providing for
the avoidance of double taxation, the
prevention of fiscal evasion, nondiscrimination
with respect to taxes, the exchange of tax
relevant information with the United States, or
mutual assistance in tax matters.
``(d) Cross References.--
``For penalties for the unauthorized disclosure of tax
convention information which is return or return information,
see sections 7213, 7213A, and 7431.''.
(2) Clerical amendment.--The table of sections for
subchapter B of chapter 61 is amended by inserting
after the item relating to section 6104 the following
new item:
``Sec. 6105. Confidentiality of information arising under treaty
obligations.''.
(c) Exception From Public Inspection as Written
Determination.--
(1) Closing and similar agreements.--Paragraph (1)
of section 6110(b) is amended to read as follows:
``(1) Written determination.--
``(A) In general.--The term `written
determination' means a ruling, determination
letter, technical advice memorandum, or Chief
Counsel advice.
``(B) Exceptions.--Such term shall not
include any matter referred to in subparagraph
(C) or (D) of section 6103(b)(2).''.
(2) Agreements with foreign governments.--Paragraph
(1) of section 6110(l) is amended by inserting ``or
6105'' after ``6104''.
(d) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 305. INCREASE IN THRESHOLD FOR JOINT COMMITTEE REPORTS ON REFUNDS
AND CREDITS.
(a) General Rule.--Subsections (a) and (b) of section 6405
are each amended by striking ``$1,000,000'' and inserting
``$2,000,000''.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect on the date of the enactment of this Act,
except that such amendment shall not apply with respect to any
refund or credit with respect to a report that has been made
before such date of the enactment under section 6405 of the
Internal Revenue Code of 1986.
SEC. 306. TREATMENT OF MISSING CHILDREN WITH RESPECT TO CERTAIN TAX
BENEFITS.
(a) In General.--Subsection (c) of section 151 (relating to
additional exemption for dependents) is amended by adding at
the end the following new paragraph:
``(6) Treatment of missing children.--
``(A) In general.--Solely for the purposes
referred to in subparagraph (B), a child of the
taxpayer--
``(i) who is presumed by law
enforcement authorities to have been
kidnapped by someone who is not a
member of the family of such child or
the taxpayer, and
``(ii) who was (without regard to
this paragraph) the dependent of the
taxpayer for the portion of the taxable
year before the date of the kidnapping,
shall be treated as a dependent of the taxpayer
for all taxable years ending during the period
that the child is kidnapped.
``(B) Purposes.--Subparagraph (A) shall
apply solely for purposes of determining--
``(i) the deduction under this
section,
``(ii) the credit under section 24
(relating to child tax credit), and
``(iii) whether an individual is a
surviving spouse or a head of a
household (such terms are defined in
section 2).
``(C) Comparable treatment for earned
income credit.--For purposes of section 32, an
individual--
``(i) who is presumed by law
enforcement authorities to have been
kidnapped by someone who is not a
member of the family of such individual
or the taxpayer, and
``(ii) who had, for the taxable
year in which the kidnapping occurred,
the same principal place of abode as
the taxpayer for more than one-half of
the portion of such year before the
date of the kidnapping, shall be
treated as meeting the requirement of
section 32(c)(3)(A)(ii) with respect to
a taxpayer for all taxable years ending
during the period that the individual
is kidnapped.
``(D) Termination of treatment.--
Subparagraphs (A) and (C) shall cease to apply
as of the first taxable year of the taxpayer
beginning after the calendar year in which
there is a determination that the child is dead
(or, if earlier, in which the child would have
attained age 18).''
(b) Effective Date.--The amendment made by this section
shall apply to taxable years ending after the date of the
enactment of this Act.
SEC. 307. AMENDMENTS TO STATUTES REFERENCING YIELD ON 52-WEEK TREASURY
BILLS.
(a) Amendment to the Act of February 26, 1931.--Section 6
of the Act of February 26, 1931 (40 U.S.C. 258e-1) (relating to
the interest rate on compensation owed for takings of property)
is amended--
(1) in paragraph (1), by striking ``the coupon
issue yield equivalent (as determined by the Secretary
of the Treasury) of the average accepted auction price
for the last auction of 52 week United States Treasury
bills settled immediately before'' and inserting ``the
weekly average 1-year constant maturity Treasury yield,
as published by the Board of Governors of the Federal
Reserve System, for the calendar week preceding''; and
(2) in paragraph (2), by striking ``the coupon
issue yield equivalent (as determined by the Secretary
of the Treasury) of the average accepted auction price
for the last auction of 52 week United States Treasury
bills settled immediately before'' and inserting ``the
weekly average 1-year constant maturity Treasury yield,
as published by the Board of Governors of the Federal
Reserve System, for the calendar week preceding''.
(b) Amendment to Title 18, United States Code.--Section
3612(f)(2)(B) of title 18, United States Code (relating to the
interest rate on unpaid criminal fines and penalties of more
than $2,500) is amended by striking ``the coupon issue yield
equivalent (as determined by the Secretary of the Treasury) of
the average accepted auction price for the last auction of
fifty-two week United States Treasury bills settled before''
and inserting `the weekly average 1-year constant maturity
Treasury yield, as published by the Board of Governors of the
Federal Reserve System, for the calendar week preceding.''.
(c) Amendment to the Internal Revenue Code.--Section
995(f)(4) (relating to the interest rate on tax-deferred
liability of shareholders of domestic international sales
corporations) is amended by striking ``the average investment
yield of United States Treasury bills with maturities of 52
weeks which were auctioned during the 1-year period'' and
inserting ``the average of the 1-year constant maturity
Treasury yields, as published by the Board of Governors of the
Federal Reserve System, for the 1-year period''.
(d) Amendments to Title 28, United States Code.--
(1) Amendment to section 1961.--Section 1961(a) of
title 28, United States Code (relating to the interest
rate on money judgments in civil cases recovered in
Federal district court) is amended by striking ``the
coupon issue yield equivalent (as determined by the
Secretary of the Treasury) of the average accepted
auction price for the last auction of fifty-two week
United States Treasury bills settled immediately prior
to'' and inserting ``the weekly average 1-year constant
maturity Treasury yield, as published by the Board of
Governors of the Federal Reserve System, for the
calendar week preceding.''.
(2) Amendment to section 2516.--Section 2516(b) of
title 28, United States Code (relating to the interest
rate on a judgment against the United States affirmed
by the Supreme Court after review on petition of the
United States) is amended by striking ``the coupon
issue yield equivalent (as determined by the Secretary
of the Treasury) of the average accepted auction price
for the last auction of fifty-two week United States
Treasury bills settled immediately before'' and
inserting ``the weekly average 1-year constant maturity
Treasury yield, as published by the Board of Governors
of the Federal Reserve System, for the calendar week
preceding''.
SEC. 308. ADJUSTMENTS FOR CONSUMER PRICE INDEX ERROR.
(a) Determinations by OMB.--As soon as practicable after
the date of the enactment of this Act, the Director of the
Office of Management and Budget shall determine with respect to
each applicable Federal benefit program whether the CPI
computation error for 1999 has or will result in a shortfall in
payments to beneficiaries under such program (as compared to
payments that would have been made if the error had not
occurred). As soon as practicable after the date of the
enactment of this Act, but not later than 60 days after such
date, the Director shall direct the head of the Federal agency
which administers such program to make a payment or payments
that, insofar as the Director finds practicable and feasible--
(1) are targeted to the amount of the shortfall
experienced by individual beneficiaries, and
(2) compensate for the shortfall.
(b) Coordination With Federal Agencies.--As soon as
practicable after the date of the enactment of this Act, each
Federal agency that administers an applicable Federal benefit
program shall, in accordance with such guidelines as are issued
by the Director pursuant to this section, make an initial
determination of whether, and the extent to which, the CPI
computation error for 1999 has or will result in a shortfall in
payments to beneficiaries of an applicable Federal benefit
program administered by such agency. Not later than 30 days
after such date, the head of such agency shall submit a report
to the Director and to each House of the Congress of such
determination, together with a complete description of the
nature of the shortfall.
(c) Implementation Pursuant to Agency Reports.--Upon
receipt of the report submitted by a Federal agency pursuant to
subsection (b), the Director shall review the initial
determination of the agency, the agency's description of the
nature of the shortfall, and the compensation payments proposed
by the agency. Prior to directing payment of such payments
pursuant to subsection (a), the Director shall make appropriate
adjustments (if any) in the compensation payments proposed by
the agency that the Director determines are necessary to comply
with the requirements of subsection (a) and transmit to the
agency a summary report of the review, indicating any
adjustments made by the Director. The agency shall make the
compensation payments as directed by the Director pursuant to
subsection (a) in accordance with the Director's summary
report.
(d) Income Disregard Under Federal Means-Tested Benefit
Programs.--A payment made under this section to compensate for
a shortfall in benefits shall, in accordance with guidelines
issued by the Director pursuant to this section, be disregarded
in determining income under title VIII of the Social Security
Act or any applicable Federal benefit program that is means-
tested.
(e) Funding.--Funds otherwise available under each
applicable Federal benefit program for making benefit payments
under such program are hereby made available for making
compensation payments under this section in connection with
such program.
(f) No Judicial Review.--No action taken pursuant to this
section shall be subject to judicial review.
(g) Director's Report.--Not later than April 1, 2001, the
Director shall submit to each House of the Congress a report on
the activities performed by the Director pursuant to this
section.
(h) Definitions.--For purposes of this section:
(1) Applicable federal benefit program.--The term
``applicable Federal benefit program'' means any
program of the Government of the United States
providing for regular or periodic payments or cash
assistance paid directly to individual beneficiaries,
as determined by the Director of the Office of
Management and Budget.
(2) Federal agency.--The term ``Federal agency''
means a department, agency, or instrumentality of the
Government of the United States.
(3) CPI computation error for 1999.--The term ``CPI
computation error for 1999'' means the error in the
computation of the Consumer Price Index announced by
the Bureau of Labor Statistics on September 28, 2000.
(i) Tax Provisions.--In the case of taxable years (and
other periods) beginning after December 31, 2000, if any
Consumer Price Index (as defined in section 1(f)(5) of the
Internal Revenue Code of 1986) reflects the CPI computation
error for 1999--
(1) the correct amount of such Index shall (in such
manner and to such extent as the Secretary of the
Treasury determines to be appropriate) be taken into
account for purposes of such Code, and
(2) tables prescribed under section 1(f) of such
Code to reflect such correct amount shall apply in lieu
of any tables that were prescribed based on the
erroneous amount.
SEC. 309. PREVENTION OF DUPLICATION OF LOSS THROUGH ASSUMPTION OF
LIABILITIES GIVING RISE TO A DEDUCTION.
(a) In General.--Section 358 (relating to basis to
distributees) is amended by adding at the end the following new
subsection:
``(h) Special Rules for Assumption of Liabilities To Which
Subsection (d) Does Not Apply.--
``(1) In general.--If, after application of the
other provisions of this section to an exchange or
series of exchanges, the basis of property to which
subsection (a)(1) applies exceeds the fair market value
of such property, then such basis shall be reduced (but
not below such fair market value) by the amount
(determined as of the date of the exchange) of any
liability--
``(A) which is assumed in exchange for such
property, and
``(B) with respect to which subsection
(d)(1) does not apply to the assumption.
``(2) Exceptions.--Except as provided by the
Secretary, paragraph (1) shall not apply to any
liability if--
``(A) the trade or business with which the
liability is associated is transferred to the
person assuming the liability as part of the
exchange, or
``(B) substantially all of the assets with
which the liability is associated are
transferred to the person assuming the
liability as part of the exchange.
``(3) Liability.--For purposes of this subsection,
the term `liability' shall include any fixed or
contingent obligation to make payment, without regard
to whether the obligation is otherwise taken into
account for purposes of this title.''
(b) Determination of Amount of Liability Assumed.--Section
357(d)(1) is amended by inserting ``section 358(h),'' after
``section 358(d),''.
(c) Application of Comparable Rules to Partnerships and S
Corporations.--The Secretary of the Treasury or his delegate--
(1) shall prescribe rules which provide appropriate
adjustments under subchapter K of chapter 1 of the
Internal Revenue Code of 1986 to prevent the
acceleration or duplication of losses through the
assumption of (or transfer of assets subject to)
liabilities described in section 358(h)(3) of such Code
(as added by subsection (a)) in transactions involving
partnerships, and
(2) may prescribe rules which provide appropriate
adjustments under subchapter S of chapter 1 of such
Code in transactions described in paragraph (1)
involving S corporations rather than partnerships.
(d) Effective Dates.--
(1) In general.--The amendments made by this
section shall apply to assumptions of liability after
October 18, 1999.
(2) Rules.--The rules prescribed under subsection
(c) shall apply to assumptions of liability after
October 18, 1999, or such later date as may be
prescribed in such rules.
SEC. 310. DISCLOSURE OF CERTAIN INFORMATION TO CONGRESSIONAL BUDGET
OFFICE.
(a) Disclosure of Certain Tax Information.--
(1) In general.--Subsection (j) of section 6103
(relating to statistical use) is amended by adding at
the end the following new paragraph:
``(6) Congressional budget office.--Upon written
request by the Director of the Congressional Budget
Office, the Secretary shall furnish to officers and
employees of the Congressional Budget Office return
information for the purpose of, but only to the extent
necessary for, long-term models of the social security
and medicare programs.''
(2) Recordkeeping safeguards.--Section 6103(p) is
amended--
(A) in paragraph (4)--
(i) in the matter preceding
subparagraph (A), by inserting ``the
Congressional Budget Office,'' after
``General Accounting Office,'',
(ii) in subparagraph (E), by
striking ``commission or the General
Accounting Office'' and inserting
``commission, the General Accounting
Office, or the Congressional Budget
Office'',
(iii) in subparagraph (F)(ii), by
striking ``or the General Accounting
Office,'' and inserting ``the General
Accounting Office, or the Congressional
Budget Office,'', and
(iv) in the matter following
subparagraph (F), by inserting ``or the
Congressional Budget Office'' after
``General Accounting Office'' both
places it appears,
(B) in paragraph (5), by striking
``commissions and the General Accounting
Office'' and inserting ``commissions, the
General Accounting Office, and the
Congressional Budget Office'', and
(C) in paragraph (6)(A), by inserting ``and
the Congressional Budget Office'' after
``commissions''.
(b) Confidentiality of Records.--
(1) In general.--Section 203 of the Congressional
Budget Act of 1974 (2 U.S.C. 603) is amended by adding
at the end the following:
``(e) Level of Confidentiality.--With respect to
information, data, estimates, and statistics obtained under
sections 201(d) and 201(e), the Director shall maintain the
same level of confidentiality as is required by law of the
department, agency, establishment, or regulatory agency or
commission from which it is obtained. Officers and employees of
the Congressional Budget Office shall be subject to the same
statutory penalties for unauthorized disclosure or use as
officers or employees of the department, agency, establishment,
or regulatory agency or commission from which it is
obtained.''.
(2) Conforming amendment.--Subsection (a) of
section 203 of such Act is amended by striking
``subsections (c) and (d)'' and inserting ``subsections
(c), (d), and (e)''.
Subtitle B--Technical Corrections
SEC. 311. AMENDMENTS RELATED TO TICKET TO WORK AND WORK INCENTIVES
IMPROVEMENT ACT OF 1999.
(a) Amendments Related to Section 502 of the Act.--
(1) Section 280C(c)(1) is amended by striking ``or
credit'' after ``deduction'' each place it appears.
(2) Section 30A is amended by redesignating
subsections (f) and (g) as subsections (g) and (h),
respectively, and by inserting after subsection (e) the
following new subsection:
``(f) Denial of Double Benefit.--Any wages or other
expenses taken into account in determining the credit under
this section may not be taken into account in determining the
credit under section 41.''
(b) Amendment Related to Section 545 of the Act.--Clause
(ii) of section 857(b)(7)(B) is amended to read as follows:
``(ii) Exception for certain amounts.--Clause (i) shall
not apply to amounts received directly or indirectly by a real
estate investment trust--
``(I) for services furnished or rendered by a taxable
REIT subsidiary that are described in paragraph (1)(B) of
section 856(d), or
``(II) from a taxable REIT subsidiary that are described
in paragraph (7)(C)(ii) of such section.''
(c) Clarification Related to Section 538 of the Act.--The
reference to section 332(b)(1) of the Internal Revenue Code of
1986 in Treasury Regulation section 1.1502-34 shall be deemed
to include a reference to section 732(f) of such Code.
(d) Effective Date.--Subsection (c) and the amendments
made by this section shall take effect as if included in the
provisions of the Ticket to Work and Work Incentives
Improvement Act of 1999 to which they relate.
SEC. 312. AMENDMENTS RELATED TO TAX AND TRADE RELIEF EXTENSION ACT OF
1998.
(a) Amendment Related to Section 1004(b) of the Act.--
Subsection (d) of section 6104 is amended by adding at the end
the following new paragraph:
``(6) Application to nonexempt charitable trusts
and nonexempt private foundations.--The organizations
referred to in paragraphs (1) and (2) of section
6033(d) shall comply with the requirements of this
subsection relating to annual returns filed under
section 6033 in the same manner as the organizations
referred to in paragraph (1).''.
(b) Amendment Related to Section 4003 of the Act.--
Subsection (b) of section 4003 of the Tax and Trade Relief
Extension Act of 1998 is amended by inserting
``(7)(A)(i)(II),'' after ``(5)(A)(ii)(I),''.
(c) Effective Date.--The amendments made by this section
shall take effect as if included in the provisions of the Tax
and Trade Relief Extension Act of 1998 to which they relate.
SEC. 313. AMENDMENTS RELATED TO INTERNAL REVENUE SERVICE RESTRUCTURING
AND REFORM ACT OF 1998.
(a) Amendments Related to Innocent Spouse Relief.--
(1) Election may be made any time after deficiency
asserted.--Subparagraph (B) of section 6015(c)(3) is
amended by striking ``shall be made'' and inserting
``may be made at any time after a deficiency for such
year is asserted but''.
(2) Clarification regarding disallowance of refunds
and credits under section 6015(c).--
(A) In general.--Section 6015 is amended by
redesignating subsection (g) as subsection (h)
and by inserting after subsection (f) the
following new subsection:
``(g) Credits and Refunds.--
``(1) In general.--Except as provided in paragraphs
(2) and (3), notwithstanding any other law or rule of
law (other than section 6511, 6512(b), 7121, or 7122),
credit or refund shall be allowed or made to the extent
attributable to the application of this section.
``(2) Res judicata.--In the case of any election
under subsection (b) or (c), if a decision of a court
in any prior proceeding for the same taxable year has
become final, such decision shall be conclusive except
with respect to the qualification of the individual for
relief which was not an issue in such proceeding. The
exception contained in the preceding sentence shall not
apply if the court determines that the individual
participated meaningfully in such prior proceeding.
``(3) Credit and refund not allowed under
subsection (c).--No credit or refund shall be allowed
as a result of an election under subsection (c).''.
(B) Conforming amendment.--Paragraph (3) of
section 6015(e) is amended to read as follows:
``(3) Limitation on tax court jurisdiction.--If a
suit for refund is begun by either individual filing
the joint return pursuant to section 6532--
``(A) the Tax Court shall lose jurisdiction
of the individual's action under this section
to whatever extent jurisdiction is acquired by
the district court or the United States Court
of Federal Claims over the taxable years that
are the subject of the suit for refund, and
``(B) the court acquiring jurisdiction
shall have jurisdiction over the petition filed
under this subsection.''.
(3) Clarifications regarding review by tax court.--
(A) Paragraph (1) of section 6015(e) is
amended in the matter preceding subparagraph
(A) by inserting after ``individual'' the
following: ``against whom a deficiency has been
asserted and''.
(B) Subparagraph (A) of section 6015(e)(1)
is amended to read as follows:
``(A) In general.--In addition to any other
remedy provided by law, the individual may
petition the Tax Court (and the Tax Court shall
have jurisdiction) to determine the appropriate
relief available to the individual under this
section if such petition is filed--
``(i) at any time after the earlier
of--
``(I) the date the
Secretary mails, by certified
or registered mail to the
taxpayer's last known address,
notice of the Secretary's final
determination of relief
available to the individual, or
``(II) the date which is 6
months after the date such
election is filed with the
Secretary, and
``(ii) not later than the close of
the 90th day after the date described
in clause (i)(I).''.
(C) Subparagraph (B)(i) of section
6015(e)(1) is amended--
(i) by striking ``until the
expiration of the 90-day period
described in subparagraph (A)'' and
inserting ``until the close of the 90th
day referred to in subparagraph
(A)(ii)'', and
(ii) by inserting ``under
subparagraph (A)'' after ``filed with
the Tax Court''.
(D)(i) Subsection (e) of section 6015 is
amended by adding at the end the following new
paragraph:
``(5) Waiver.--An individual who elects the
application of subsection (b) or (c) (and who agrees
with the Secretary's determination of relief) may waive
in writing at any time the restrictions in paragraph
(1)(B) with respect to collection of the outstanding
assessment (whether or not a notice of the Secretary's
final determination of relief has been mailed).''.
(ii) Paragraph (2) of section 6015(e) is
amended to read as follows:
``(2) Suspension of running of period of
limitations.--The running of the period of limitations
in section 6502 on the collection of the assessment to
which the petition under paragraph (1)(A) relates shall
be suspended--
``(A) for the period during which the
Secretary is prohibited by paragraph (1)(B)
from collecting by levy or a proceeding in
court and for 60 days thereafter, and
``(B) if a waiver under paragraph (5) is
made, from the date the claim for relief was
filed until 60 days after the waiver is filed
with the Secretary.''.
(b) Amendments Related to Procedure and Administration.--
(1) Disputes involving $50,000 or less.--Section
7463 is amended by adding at the end the following new
subsection:
``(f) Additional Cases in Which Proceedings May Be
Conducted Under This Section.--At the option of the taxpayer
concurred in by the Tax Court or a division thereof before the
hearing of the case, proceedings may be conducted under this
section (in the same manner as a case described in subsection
(a)) in the case of--
``(1) a petition to the Tax Court under section
6015(e) in which the amount of relief sought does not
exceed $50,000, and
``(2) an appeal under section 6330(d)(1)(A) to the
Tax Court of a determination in which the unpaid tax
does not exceed $50,000.''.
(2) Authority to enjoin collection actions.--
(A) Section 6330(e)(1) is amended by adding
at the end the following: ``Notwithstanding the
provisions of section 7421(a), the beginning of
a levy or proceeding during the time the
suspension under this paragraph is in force may
be enjoined by a proceeding in the proper
court, including the Tax Court. The Tax Court
shall have no jurisdiction under this paragraph
to enjoin any action or proceeding unless a
timely appeal has been filed under subsection
(d)(1) and then only in respect of the unpaid
tax or proposed levy to which the determination
being appealed relates.''.
(B) Section 7421(a) is amended by inserting
``6330(e)(1),'' after ``6246(b),''.
(3) Clarification.--Paragraph (3) of section
6331(k) is amended by striking ``(3), (4), and (5)''
and inserting ``(3) and (4)''.
(c) Amendment Related to Section 1103 of the Act.--
Paragraph (6) of section 6103(k) is amended--
(1) by inserting ``and an officer or employee of
the Office of Treasury Inspector General for Tax
Administration'' after ``internal revenue officer or
employee'', and
(2) by striking ``internal revenue'' in the heading
and inserting ``certain''.
(d) Amendment Related to Section 3401 of the Act.--Section
6330(d)(1)(A) is amended by striking ``to hear'' and inserting
``with respect to''.
(e) Amendment Related to Section 3509 of the Act.--
Subparagraph (A) of section 6110(g)(5) is amended by inserting
``, any Chief Counsel advice,'' after ``technical advice
memorandum''.
(f) Effective Dates.--The amendments made by subsections
(a) and (b) shall take effect on the date of the enactment of
this Act. The amendments made by subsections (c), (d), and (e)
shall take effect as if included in the provisions of the
Internal Revenue Service Restructuring and Reform Act of 1998
to which they relate.
SEC. 314. AMENDMENTS RELATED TO TAXPAYER RELIEF ACT OF 1997.
(a) Amendment Related to Section 101 of the Act.--Paragraph
(4) of section 6211(b) is amended by striking ``sections 32 and
34'' and inserting ``sections 24(d), 32, and 34''.
(b) Amendment Related to Section 302 of the Act.--The last
sentence of section 3405(e)(1)(B) is amended by inserting
``(other than a Roth IRA)'' after ``individual retirement
plan''.
(c) Amendment to Section 311 of the Act.--Paragraph (3) of
section 311(e) of the Taxpayer Relief Act of 1997 (relating to
election to recognize gain on assets held on January 1, 2001)
is amended by adding at the end the following new sentence:
``Such an election shall not apply to any asset which is
disposed of (in a transaction in which gain or loss is
recognized in whole or in part) before the close of the 1-year
period beginning on the date that the asset would have been
treated as sold under such election.''
(d) Amendment Related to Section 402 of the Act.--The flush
sentence at the end of clause (ii) of section 56(a)(1)(A) is
amended by inserting before ``or to any other property'' the
following: ``(and the straight line method shall be used for
such 1250 property)''.
(e) Amendments Related to Section 1072 of the Act.--
(1) Clause (ii) of section 415(c)(3)(D) and
subparagraph (B) of section 403(b)(3) are each amended
by striking ``section 125 or'' and inserting ``section
125, 132(f)(4), or''.
(2) Paragraph (2) of section 414(s) is amended by
striking ``section 125, 402(e)(3)'' and inserting
``section 125, 132(f)(4), 402(e)(3)''.
(f) Amendment Related to Section 1454 of the Act.--
Subsection (a) of section 7436 is amended by inserting before
the period at the end of the first sentence ``and the proper
amount of employment tax under such determination''.
(g) Effective Date.--The amendments made by this section
shall take effect as if included in the provisions of the
Taxpayer Relief of 1997 to which they relate.
SEC. 315. AMENDMENTS RELATED TO BALANCED BUDGET ACT OF 1997.
(a) Amendments Related to Section 9302 of the Act.--
(1) Paragraph (1) of section 9302(j) of the
Balanced Budget Act of 1997 is amended by striking
``tobacco products and cigarette papers and tubes'' and
inserting ``cigarettes''.
(2)(A) Subsection (h) of section 5702 is amended to
read as follows:
``(h) Manufacturer of Cigarette Papers and Tubes.--
`Manufacturer of cigarette papers and tubes' means any person
who manufactures cigarette paper, or makes up cigarette paper
into tubes, except for his own personal use or consumption.''
(B) Section 5702, as amended by subparagraph (A),
is amended by striking subsection (f) and by
redesignating subsections (g) through (p) as
subsections (f) through (o), respectively.
(3) Subsection (c) of section 5761 is amended by
adding at the end the following: ``This subsection and
section 5754 shall not apply to any person who relands
or receives tobacco products in the quantity allowed
entry free of tax and duty under chapter 98 of the
Harmonized Tariff Schedule of the United States, and
such person may voluntarily relinquish to the Secretary
at the time of entry any excess of such quantity
without incurring the penalty under this subsection. No
quantity of tobacco products other than the quantity
referred to in the preceding sentence may be relanded
or received as a personal use quantity.''.
(b) Effective Date.--The amendments made by this section
shall take effect as if included in section 9302 of the
Balanced Budget Act of 1997.
SEC. 316. AMENDMENTS RELATED TO SMALL BUSINESS JOB PROTECTION ACT OF
1996.
(a) Amendment Related to Section 1201 of the Act.--
Subparagraph (B) of section 51(d)(2) is amended--
(1) by striking ``plan approved'' and inserting
``program funded'', and
(2) by striking ``(relating to assistance for needy
families with minor children)''.
(b) Amendment Related to Section 1302 of the Act.--Clause
(i) of section 1361(e)(1)(A) is amended by striking ``or''
before ``(III)'' and by adding at the end the following: ``or
(IV) an organization described in section 170(c)(1) which holds
a contingent interest in such trust and is not a potential
current beneficiary,''.
(c) Amendment Related to Section 1401 of the Act.--Clause
(ii) of section 401(k)(10)(B) is amended by adding at the end
the following new sentence: ``Such term includes a distribution
of an annuity contract from--
``(I) a trust which forms a
part of a plan described in
section 401(a) and which is
exempt from tax under section
501(a), or
``(II) an annuity plan
described in section 403(a).''.
(d) Amendment Related to Section 1427 of the Act.--Clause
(ii) of section 219(c)(1)(B) is amended by striking ``and'' at
the end of subclause (I), by redesignating subclause (II) as
subclause (III), and by inserting after subclause (I) the
following new subclause:
``(II) the amount of any
designated nondeductible
contribution (as defined in
section 408(o)) on behalf of
such spouse for such taxable
year, and''.
(e) Effective Date.--The amendments made by this section
shall take effect as if included in the provisions of the Small
Business Job Protection Act of 1996 to which they relate.
SEC. 317. AMENDMENT RELATED TO REVENUE RECONCILIATION ACT OF 1990.
(a) Amendment Related to Section 11511 of the Act.--
Subparagraph (C) of section 43(c)(1) is amended--
(1) by inserting ``(as defined in section 193(b))''
after ``expenses'', and
(2) by striking ``under section 193''.
(b) Effective Date.--The amendment made by this section
shall take effect as if included in section 11511 of the
Revenue Reconciliation Act of 1990.
SEC. 318. OTHER TECHNICAL CORRECTIONS.
(a) Modified Endowment Contracts.--
(1) Paragraph (2) of section 7702A(a) is amended by
inserting ``or this paragraph'' before the period.
(2) Clause (ii) of section 7702A(c)(3)(A) is
amended by striking ``under the contract'' and
inserting ``under the old contract''.
(3) The amendments made by this subsection shall
take effect as if included in the amendments made by
section 5012 of the Technical and Miscellaneous Revenue
Act of 1988.
(b) Affiliated Corporations in Context of Worthless
Securities.--
(1) Subparagraph (A) of section 165(g)(3) is
amended to read as follows:
``(A) the taxpayer owns directly stock in
such corporation meeting the requirements of
section 1504(a)(2), and''.
(2) Paragraph (3) of section 165(g) is amended by
striking the last sentence.
(3) The amendments made by this subsection shall
apply to taxable years beginning after December 31,
1984.
(c) Certain Annuities Issued by Tax-Exempt Organizations
Not Treated as Debt Instruments under Original Issue Discount
Rules.--
(1) Clause (ii) of section 1275(a)(1)(B) is amended
by striking ``subchapter L'' and inserting ``subchapter
L (or by an entity described in section 501(c) and
exempt from tax under section 501(a) which would be
subject to tax under subchapter L were it not so
exempt)''.
(2) The amendment made by this subsection shall
take effect as if included in the amendments made by
section 41 of the Tax Reform Act of 1984.
(d) Tentative Carryback Adjustments of Losses From Section
1256 Contracts.--
(1) Subsection (a) of section 6411 is amended by
striking ``section 1212(a)(1)'' and inserting
``subsection (a)(1) or (c) of section 1212''.
(2) The amendment made by paragraph (1) shall take
effect as if included in the amendments made by section
504 of the Economic Recovery Tax Act of 1981.
(e) Correction of Calculation of Amounts to be Deposited in
Highway Trust Fund.--
(1) Subsection (b) of section 9503 is amended by
striking paragraph (5) and redesignating paragraph (6)
as paragraph (5).
(2) The amendment made by paragraph (1) shall apply
with respect to taxes received in the Treasury after
the date of the enactment of this Act.
(f) Expenditures From Vaccine Injury Compensation Trust
Fund.--Section 9510(c)(1)(A) is amended by striking ``December
31, 1999'' and inserting ``October 18, 2000''.
SEC. 319. CLERICAL CHANGES.
(1) Clause (i) of section 45(d)(7)(A) is amended by
striking ``paragraph (3)(A)'' and inserting
``subsection (c)(3)(A)''.
(2) Subsection (f) of section 67 is amended by
striking ``the last sentence'' and inserting ``the
second sentence''.
(3) The heading for paragraph (5) of section 408(d)
is amended to read as follows:
``(5) Distributions of excess contributions after
due date for taxable year and certain excess rollover
contributions.--''.
(4) Paragraph (3) of section 475(g) is amended by
striking ``267(b) of'' and inserting ``267(b) or''.
(5) The heading for subparagraph (B) of section
529(e)(3) is amended by striking ``under guaranteed
plans''.
(6) Clause (iii) of section 530(d)(4)(B) is amended
by striking ``; or'' at the end and inserting ``, or''.
(7) Paragraphs (1)(C) and (2)(C) of section 664(d)
are each amended by striking the period after
``subsection (g))''.
(8)(A) Subsection (e) of section 678 is amended by
striking ``an electing small business corporation'' and
inserting ``an S corporation''.
(B) Clause (v) of section 6103(e)(1)(D) is amended
to read as follows:
``(v) if the corporation was an S
corporation, any person who was a
shareholder during any part of the
period covered by such return during
which an election under section 1362(a)
was in effect, or''.
(9) Paragraph (7) of section 856(c) is amended by
striking ``paragraph (4)(B)(ii)(III)'' and inserting
``paragraph (4)(B)(iii)(III)''.
(10) Subparagraph (A) of section 856(l)(4) is
amended by striking ``paragraph (9)(D)(ii)'' and
inserting ``subsection (d)(9)(D)(ii)''.
(11) Subparagraph (B) of section 871(f)(2) is
amended by striking ``19 U.S.C.'' and inserting ``(19
U.S.C.''.
(12) Subparagraph (B) of section 995(b)(3) is
amended by striking ``the Military Security Act of 1954
(22 U.S.C. 1934)'' and inserting ``section 38 of the
International Security Assistance and Arms Export
Control Act of 1976 (22 U.S.C. 2778)''.
(13) Section 1391(g)(3)(C) is amended by striking
``paragraph (1)(B)'' and inserting ``paragraph (1)''.
(14)(A) Paragraph (2) of section 2035(c) is amended
by striking ``paragraph (1)'' and inserting
``subsection (a)''.
(B) Subsection (d) of section 2035 is amended by
inserting ``and paragraph (1) of subsection (c)'' after
``Subsection (a)''.
(15) Paragraph (5) of section 3121(a) is amended by
striking the semicolon at the end of subparagraph (G)
and inserting a comma.
(16) Subparagraph (B) of section 4946(c)(3) is
amended by striking ``the lowest rate of compensation
prescribed for GS-16 of the General Schedule under
section 5332'' and inserting ``the lowest rate of basic
pay for the Senior Executive Service under section
5382''.
(17) Subsection (p) of section 6103 is amended--
(A) in paragraph (4), in the matter
preceding subparagraph (A)--
(i) by striking the second comma
after ``(13)'', and
(ii) by striking ``(7)'' and all
that follows through ``shall, as a
condition'' and inserting ``(7), (8),
(9), (12), (15), or (16) or any other
person described in subsection (l)(16)
shall, as a condition'', and
(B) in paragraph (4)(F)(ii), by striking
the second comma after ``(14)''.
(18) Paragraph (5) of section 6166(k) is amended by
striking ``2035(d)(4)'' and inserting ``2035(c)(2)''.
(19) Subsection (a) of section 6512 is amended by
striking ``; and'' at the end of paragraphs (1), (2),
and (5) and inserting ``, and''.
(20) Paragraph (1) of section 6611(g) is amended by
striking the comma after ``(b)(3)''.
(21) Subparagraphs (A) and (B) of section
6655(e)(5) are amended by striking ``subsections (d)(5)
and (l)(3)(B)'' and inserting ``subsection (d)(5)''.
(22) The subchapter heading for subchapter D of
chapter 67 is amended by capitalizing the first letter
of the second word.
(23)(A) Section 6724(d)(1)(B) is amended by
striking clauses (xiv) through (xvii) and inserting the
following:
``(xiv) subparagraph (A) or (C) of
subsection (c)(4) of section 4093
(relating to information reporting with
respect to tax on diesel and aviation
fuels),
``(xv) section 4101(d) (relating to
information reporting with respect to
fuels taxes),
``(xvi) subparagraph (C) of section
338(h)(10) (relating to information
required to be furnished to the
Secretary in case of elective
recognition of gain or loss), or
``(xvii) section 264(f)(5)(A)(iv)
(relating to reporting with respect to
certain life insurance and annuity
contracts), and''.
(B) Section 6010(o)(4)(C) of the Internal Revenue
Service Restructuring and Reform Act of 1998 is amended
by striking ``inserting `or', and by adding at the
end'' and inserting ``inserting `, or', and by adding
after subparagraph (Z)''.
(24) Subsection (a) of section 7421 is amended by
striking ``6672(b)'' and inserting ``6672(c)''.
(25) Paragraph (3) of section 7430(c) is amended--
(A) in the paragraph heading, by striking
``Attorneys'' and inserting ``Attorneys' '',
and
(B) in subparagraph (B), by striking
``attorneys fees'' each place it appears and
inserting ``attorneys' fees''.
(26) Paragraph (2) of section 7603(b) is amended by
striking the semicolon at the end of subparagraphs (A),
(B), (C), (D), (E), (F), and (G) and inserting a comma.
(27) Clause (ii) of section 7802(b)(2)(B) is
amended by striking ``; and'' at the end and inserting
``, and''.
(28) Paragraph (3) of section 7811(a) is amended by
striking ``taxpayer assistance order'' and inserting
``Taxpayer Assistance Order''.
(29) Paragraph (1) of section 7811(d) is amended by
striking ``Ombudsman's'' and inserting ``National
Taxpayer Advocate's''.
(30) Paragraph (3) of section 7872(f) is amended by
striking ``foregoing'' and inserting ``forgoing''.
TITLE IV--TAX TREATMENT OF SECURITIES FUTURES CONTRACTS
SEC. 401. TAX TREATMENT OF SECURITIES FUTURES CONTRACTS.
(a) In General.--Subpart IV of subchapter P of chapter 1
(relating to special rules for determining gains and losses) is
amended by inserting after section 1234A the following new
section:
``SEC. 1234B. GAINS OR LOSSES FROM SECURITIES FUTURES CONTRACTS.
``(a) Treatment of Gain or Loss.--
``(1) In general.--Gain or loss attributable to the
sale or exchange of a securities futures contract shall
be considered gain or loss from the sale or exchange of
property which has the same character as the property
to which the contract relates has in the hands of the
taxpayer (or would have in the hands of the taxpayer if
acquired by the taxpayer).
``(2) Nonapplication of subsection.--This
subsection shall not apply to--
``(A) a contract which constitutes property
described in paragraph (1) or (7) of section
1221(a), and
``(B) any income derived in connection with
a contract which, without regard to this
subsection, is treated as other than gain from
the sale or exchange of a capital asset.
``(b) Short-Term Gains and Losses.--Except as provided in
the regulations under section 1092(b) or this section, if gain
or loss on the sale or exchange of a securities futures
contract to sell property is considered as gain or loss from
the sale or exchange of a capital asset, such gain or loss
shall be treated as short-term capital gain or loss.
``(c) Securities Futures Contract.--For purposes of this
section, the term `securities futures contract' means any
security future (as defined in section 3(a)(55)(A) of the
Securities Exchange Act of 1934, as in effect on the date of
the enactment of this section).
``(d) Contracts Not Treated as Commodity Futures
Contracts.--For purposes of this title, a securities futures
contract shall not be treated as a commodity futures contract.
``(e) Regulations.--The Secretary shall prescribe such
regulations as may be appropriate to provide for the proper
treatment of securities futures contracts under this title.''
(b) Terminations, Etc.--Section 1234A is amended--
(1) by inserting ``(other than a securities futures
contract, as defined in section 1234B)'' after ``right
or obligation'' in paragraph (1),
(2) by striking ``or'' at the end of paragraph (1),
(3) by adding ``or'' at the end of paragraph (2),
and
(4) by inserting after paragraph (2) the following
new paragraph:
``(3) a securities futures contract (as so defined)
which is a capital asset in the hands of the
taxpayer,''.
(c) Nonrecognition Under Section 1032.--The second sentence
of section 1032(a) is amended by inserting ``, or with respect
to a securities futures contract (as defined in section
1234B),'' after ``an option''.
(d) Treatment Under Wash Sales Rules.--Section 1091 is
amended by adding at the end the following new subsection:
``(f) Cash Settlement.--This section shall not fail to
apply to a contract or option to acquire or sell stock or
securities solely by reason of the fact that the contract or
option settles in (or could be settled in) cash or property
other than such stock or securities.''
(e) Treatment Under Straddle Rules.--Clause (i) of section
1092(d)(3)(B) is amended by striking ``or'' at the end of
subclause (I), by redesignating subclause (II) as subclause
(III), and by inserting after subclause (I) the following new
subclause:
``(II) a securities futures
contract (as defined in section
1234B) with respect to such
stock or substantially
identical stock or securities,
or''.
(f) Treatment Under Short Sales Rules.--Paragraph (2) of
section 1233(e) is amended by striking ``and'' at the end of
subparagraph (B), by striking the period at the end of
subparagraph (C) and inserting ``; and'', and by adding at the
end the following:
``(D) a securities futures contract (as
defined in section 1234B) to acquire
substantially identical property shall be
treated as substantially identical property.''
(g) Treatment Under Section 1256.--
(1)(A) Subsection (b) of section 1256 is amended by
striking ``and'' at the end of paragraph (3), by
striking the period at the end of paragraph (4) and
inserting ``, and'', and by adding at the end the
following:
``(5) any dealer securities futures contract.
The term `section 1256 contract' shall not include any
securities futures contract or option on such a contract unless
such contract or option is a dealer securities futures
contract.''
(B) Subsection (g) of section 1256 is amended by
adding at the end the following new paragraph:
``(9) Dealer securities futures contract.--
``(A) In general.--The term `dealer
securities futures contract' means, with
respect to any dealer, any securities futures
contract, and any option on such a contract,
which--
``(i) is entered into by such
dealer (or, in the case of an option,
is purchased or granted by such dealer)
in the normal course of his activity of
dealing in such contracts or options,
as the case may be, and
``(ii) is traded on a qualified
board or exchange.
``(B) Dealer.--For purposes of subparagraph
(A), a person shall be treated as a dealer in
securities futures contracts or options on such
contracts if the Secretary determines that such
person performs, with respect to such contracts
or options, as the case may be, functions
similar to the functions performed by persons
described in paragraph (8)(A). Such
determination shall be made to the extent
appropriate to carry out the purposes of this
section.
``(C) Securities futures contract.--The
term `securities futures contract' has the
meaning given to such term by section 1234B.''
(2) Paragraph (4) of section 1256(f) is amended--
(A) by inserting ``, or dealer securities
futures contracts,'' after ``dealer equity
options'' in the text, and
(B) by inserting ``and dealer securities
futures contracts'' after ``dealer equity
options'' in the heading.
(3) Paragraph (6) of section 1256(g) is amended to
read as follows:
``(6) Equity option.--The term `equity option'
means any option--
``(A) to buy or sell stock, or
``(B) the value of which is determined
directly or indirectly by reference to any
stock or any narrow-based security index (as
defined in section 3(a)(55) of the Securities
Exchange Act of 1934, as in effect on the date
of the enactment of this paragraph).
The term `equity option' includes such an option on a
group of stocks only if such group meets the
requirements for a narrow-based security index (as so
defined).''
(4) The Secretary of the Treasury or his delegate
shall make the determinations under section
1256(g)(9)(B) of the Internal Revenue Code of 1986, as
added by this Act, not later than July 1, 2001.
(h) Conforming Amendments.--
(1) Section 1223 is amended by redesignating
paragraph (16) as paragraph (17) and by inserting after
paragraph (15) the following new paragraph:
``(16) If the security to which a securities
futures contract (as defined in section 1234B) relates
(other than a contract to which section 1256 applies)
is acquired in satisfaction of such contract, in
determining the period for which the taxpayer has held
such security, there shall be included the period for
which the taxpayer held such contract if such contract
was a capital asset in the hands of the taxpayer.''.
(2) The table of sections for subpart IV of
subchapter P of chapter 1 is amended by inserting after
the item relating to section 1234A the following new
item:
``Sec. 1234B. Securities futures contracts.''
(i) Designation of Contract Markets.--Section 7701 is
amended by redesignating subsection (m) as subsection (n) and
by inserting after subsection (l) the following new subsection:
``(m) Designation of Contract Markets.--Any designation by
the Commodity Futures Trading Commission of a contract market
which could not have been made under the law in effect on the
day before the date of the enactment of the Commodity Futures
Modernization Act of 2000 shall apply for purposes of this
title except to the extent provided in regulations prescribed
by the Secretary.''
(j) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
COMMUNITY RENEWAL TAX RELIEF ACT OF 2000
Following is explanatory language on H.R. 5662, as
introduced on December 14, 2000.
The conferees on H.R. 4577 agree with the matter included
in H.R. 5662 and enacted in this conference report by reference
and the following description of it.
TITLE I.--COMMUNITY RENEWAL PROVISIONS
A. Renewal Community Provisions (secs. 101-102 of the bill and secs.
51, 469, and new secs. 1400E-J of the Code)
Present Law
In recent years, provisions have been added to the
Internal Revenue Code that target specific geographic areas for
special Federal income tax treatment. For example, empowerment
zones and enterprise communities generally provide tax
incentives for businesses that locate within certain geographic
areas designated by the Secretaries of Housing and Urban
Development (`HUD'') and Agriculture.
House Bill
No provision. However, H.R. 5542 \1\ authorizes the
designation of 40 ``renewal communities'' within which special
tax incentives would be available. The following is a
description of the designation process and the tax incentives
that would be available within the renewal communities.
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\1\ H.R. 5542 was incorporated by reference into the conference
agreement that accompanied H.R. 2614 (H. Rpt. 106-1004), which was
passed by the House of Representatives on October 26, 2000.
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Designation process
Designation of 40 renewal communities.--The Secretary of
HUD,\2\ is authorized to designate up to 40 ``renewal
communities'' from areas nominated by States and local
governments. At least 12 of the designated communities must be
in rural areas. Of the 12 rural renewal communities, one shall
be an area within Mississippi, designated by the State of
Mississippi, that includes at least one census tract within
Madison County, Mississippi.
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\2\ In making the designations, the Secretary of HUD must consult
with the Secretaries of Agriculture, Commerce, Labor, Treasury, the
Director of the Office of Management and Budget; and the Administrator
of the Small Business Administration (and the Secretary of the Interior
in the case of an area within an Indian reservation).
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The Secretary of HUD is required to publish (within four
months after enactment) regulations describing the nomination
and selection process. Designations of renewal communities are
to be made during the period beginning on the first day of the
first month after the regulations are published and ending on
December 31, 2001. The designation of an area as a renewal
community generally will be effective on January 1, 2002, and
will terminate after December 31, 2009.\3\
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\3\ The designation would terminate earlier than December 31,
2009, if (1) an earlier termination date is designated by the State or
local government in their designation, or (2) the Secretary of HUD
revokes the designation as of an earlier date.
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Eligibility criteria.--To be designated as a renewal
community, a nominated area must meet the following criteria:
(1) each census tract must have a poverty rate of at least 20
percent; \4\ (2) in the case of an urban area, at least 70
percent of the households have incomes below 80 percent of the
median income of households within the local government
jurisdiction; (3) the unemployment rate is at least 1.5 times
the national unemployment rate; and (4) the area is one of
pervasive poverty, unemployment, and general distress. Those
areas with the highest average ranking of eligibility factors
(1), (2), and (3) above would be designated as renewal
communities. One nominated area within the District of Columbia
becomes a renewal community (without regard to its ranking of
eligibility factors) provided that it satisfies the area and
eligibility requirements and the required State and local
commitments described below.\5\ The Secretary of HUD shall take
into account in selecting areas for designation the extent to
which such areas have a high incidence of crime, as well as
whether the area has census tracts identified in the May 12,
1998, report of the General Accounting Office regarding the
identification of economically distressed areas. In lieu of the
poverty, income, and unemployment criteria, outmigration may be
taken into account in the designation of one rural renewal
community.
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\4\ Determined using 1990 census data.
\5\ The designation of a nominated area within the District of
Columbia as a renewal community becomes effective on January 1, 2003
(upon the expiration of the designation of the District of Columbia
Enterprise Zone).
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There are no geographic size limitations placed on
renewal communities. Instead, the boundary of a renewal
community must be continuous. In addition, the renewal
community must have a minimum population of 4,000 if the
community is located within a metropolitan statistical area (at
least 1,000 in all other cases), and a maximum population of
not more than 200,000. The population limitations do not apply
to any renewal community that is entirely within an Indian
reservation.
Required State and local commitments.--In order for an
area to be designated as a renewal community, State and local
governments are required to submit a written course of action
in which the State and local governments promise to take at
least four of the following governmental actions within the
nominated area: (1) a reduction of tax rates or fees; (2) an
increase in the level of efficiency of local services; (3)
crime reduction strategies; (4) actions to remove or streamline
governmental requirements; (5) involvement by private entities
and community groups, such as to provide jobs and job training
and financial assistance; and (6) the gift (or sale at below
fair market value) of surplus realty by the State or local
government to community organizations or private companies.
In addition, the nominating State and local governments
must promise to promote economic growth in the nominated area
by repealing or not enforcing four of the following: (1)
licensing requirements for occupations that do not ordinarily
require a professional degree; (2) zoning restrictions on home-
based businesses that do not create a public nuisance; (3)
permit requirements for street vendors who do not create a
public nuisance; (4) zoning or other restrictions that impede
the formation of schools or child care centers; and (5)
franchises or other restrictions on competition for businesses
providing public services, including but not limited to
taxicabs, jitneys, cable television, or trash hauling, unless
such regulations are necessary for and well-tailored to the
protection of health and safety.
Empowerment zones and enterprise communities seeking
designation as renewal communities.--With respect to the first
20 designations of nominated areas as renewal communities,
preference will be given to nominated areas that are enterprise
communities and empowerment zones under present law that
otherwise meet the requirements for designation as a renewal
community. An empowerment zone or enterprise community can
apply for designation as a renewal community. If a renewal
community designation is granted, then an area's designation as
an empowerment zone enterprise community ceases as of the date
the area's designation as a renewal community takes effect.
Tax incentives for renewal communities
The following tax incentives generally are available
during the period beginning January 1, 2002, and ending
December 31, 2009.\6\
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\6\ If a renewal community designation is terminated prior to
December 31, 2009, the tax incentives would cease to be available as of
the termination date.
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Zero-percent capital gain rate.--A zero-percent capital
gains rate applies with respect to gain from the sale of a
qualified community asset acquired after December 31, 2001, and
before January 1, 2010, and held for more than five years. A
``qualified community asset'' includes: (1) qualified community
stock (meaning original-issue stock purchased for cash in a
renewal community business); (2) a qualified community
partnership interest (meaning a partnership interest acquired
for cash in a renewal community business); (3) qualified
community business property (meaning tangible property
originally used in a renewal community business by the
taxpayer) that is purchased or substantially improved after
December 31, 2001.
A ``renewal community business'' is similar to the
present-law definition of an enterprise zone business.\7\
Property will continue to be a qualified community asset if
sold (or otherwise transferred) to a subsequent purchaser,
provided that the property continues to represent an interest
in (or tangible property used in) a renewal community business.
The termination of an area's status as a renewal community will
not affect whether property is a qualified community asset, but
any gain attributable to the period before January 1, 2002, or
after December 31, 2014, will not be eligible for the zero-
percent rate.
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\7\ An ``enterprise zone business'' is defined in section 1397B.
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Renewal community employment credit.--A 15-percent wage
credit is available to employers for the first $10,000 of
qualified wages paid to each employee who (1) is a resident of
the renewal community, and (2) performs substantially all
employment services within the renewal community in a trade or
business for the employer.
The wage credit rate applies to qualifying wages paid
after December 31, 2001, and before January 1, 2010. Wages that
qualify for the credit are wages that are considered
``qualified zone wages'' for purposes of the empowerment zone
wage credit (including coordination with the Work Opportunity
Tax Credit). In general, any taxable business carrying out
activities in the renewal community may claim the wage credit.
Commercial revitalization deduction.--Each State is
permitted to allocate up to $12 million of ``commercial
revitalization expenditures'' to each renewal community located
within the State for each calendar year after 2001 and before
2010. The appropriate State agency will make the allocations
pursuant to a qualified allocation plan.
A ``commercial revitalization expenditure'' means the
cost of a new building or the cost of substantially
rehabilitating an existing building. The building must be used
for commercial purposes and be located in a renewal community.
In the case of the rehabilitation of an existing building, the
cost of acquiring the building will be treated as qualifying
expenditures only to the extent that such costs do not exceed
30 percent of the other rehabilitation expenditures. The
qualifying expenditures for any building cannot exceed $10
million.
A taxpayer can elect either to (a) deduct one-half of the
commercial revitalization expenditures for the taxable year the
building is placed in service or (b) amortize all the
expenditures ratably over the 120-month period beginning with
the month the building is placed in service. No depreciation is
allowed for amounts deducted under this provision. The adjusted
basis is reduced by the amount of the commercial revitalization
deduction, and the deduction is treated as a depreciation
deduction in applying the depreciation recapture rules (e.g.,
sec. 1250). The commercial revitalization deduction is treated
in the same manner as the low-income housing credit in applying
the passive loss rules (sec. 469). Thus, up to $25,000 of
deductions (together with the other deductions and credits not
subject to the passive loss limitation by reason of section
469(i)) are allowed to an individual taxpayer regardless of the
taxpayer's adjusted gross income. The commercial revitalization
deduction is allowed in computing a taxpayer's alternative
minimum taxable income.
Additional section 179 expensing.--A renewal community
business is allowed an additional $35,000 of section 179
expensing for qualified renewal property placed in service
after December 31, 2001, and before January 1, 2010. The
section 179 expensing allowed to a taxpayer is phased out by
the amount by which 50 percent of the cost of qualified renewal
property placed in service during the year by the taxpayer
exceeds $200,000. The term ``qualified renewal property'' is
similar to the definition of ``qualified zone property'' used
in connection with empowerment zones.
Extension of work opportunity tax credit (``WOTC'').--The
bill expands the high-risk youth and qualified summer youth
categories in the WOTC to include qualified individuals who
live in a renewal community.
GAO report
The General Accounting Office will audit and report to
Congress on January 31, 2004, and again in 2007 and 2010, on
the renewal community program and its effect on poverty,
unemployment, and economic growth within the designated renewal
communities.
Effective date
Renewal communities must be designated during the period
beginning on the first day of the first month after the
publication of regulations by HUD and ending on December 31,
2001, The tax benefits available in renewal communities are
effective for the period beginning January 1, 2002, and ending
December 31, 2009.
Senate Amendment
No provision. However, S. 3152 \8\ authorizes the
Secretaries of HUD and Agriculture to designate up to 30
renewal zones from areas nominated by States and local
governments. At least six of the designated renewal zones must
be in rural areas. The Secretary of HUD is required to publish
(within four months after enactment) regulations describing the
nomination and selection process. Designations of renewal zones
must be made before January 1, 2002, and the designations are
effective for the period beginning on January 1, 2002, through
December 31, 2009.
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\8\ S. 3152 was introduced by Senator Roth and others on October
3, 2000.
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The eligibility criteria (as well as the population and
geographic limitations) are similar to those for renewal
communities in the House bill, except that S. 3152 provides
that any State without any empowerment zone would be given
priority in the designation process. Also, the designations of
renewal zones must result in (after taking into account
existing empowerment zones) each State having at least one zone
designation (empowerment or renewal zone). In addition, S. 3152
provides that, in lieu of the poverty, income, and unemployment
criteria, outmigration may be taken into account in the
designation of one rural renewal zone. Under a separate
provision in S. 3152, the designation of the District of
Columbia Enterprise Zone is entended through December 31, 2006.
In order for an area to be designated as a renewal zone,
State and local governments are required to submit a written
course of action in which the State and local governments
promise to take at least four of the governmental actions
described in the House bill with respect to renewal
communities. However, S. 3152 does not contain any of the
economic growth provision requirements described in the House
bill.
Tax incentives for renewal zones.--Under S. 3152,
businesses in renewal zones would be eligible for the following
tax incentives during the period beginning January 1, 2002 and
ending December 31, 2009: (1) a zero-percent capital gains rate
for qualifying assets limited to an aggregate amount not to
exceed $25 million of gain per taxpayer; \9\ (2) a 15-percent
wage credit for the first $15,000 of qualifying wages; (3)
$35,000 in additional 179 expensing for qualifying property;
(4) and the enhanced tax-exempt bond rules that currently apply
to businesses in the Round II empowerment zones.
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\9\ Any gain attributable to the period before January 1, 2002,
or after December 31, 2014, would not be eligible for the zero-percent
capital gains rate.
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GAO report.--The General Accounting Office will audit and
report to Congress every three years (beginning on January 31,
2004) on the renewal zone program and its effect on poverty,
unemployment, and economic growth within the designated renewal
zones.
Effective date.--The 30 renewal zones must be designated
by January 1, 2002, and the tax benefits are available for the
period beginning January 1, 2002, and ending December 31, 2009.
Conference Agreement
The conference agreement follows H.R. 5542 with the
following modifications. The conference agreement does not
include the rural renewal community designation with respect to
an area within the State of Mississippi. The conference
agreement does not include the special rule that provides that
one nominated area within the District of Columbia becomes a
renewal community (without regard to its ranking of eligibility
factors).
B. Empowerment Zone Tax Incentives
1. Extension and expansion of empowerment zones (secs. 111-115 of the
bill and secs. 1391, 1394, 1396, and 1397A of the Code)
PRESENT LAW
Round I empowerment zones
The Omnibus Budget Reconciliation Act of 1993 (``OBRA
1993'') authorized the designation of nine empowerment zones
(``Round I empowerment zones'') to provide tax incentives for
businesses to locate within targeted areas designated by the
Secretaries of HUD and Agriculture. The Taxpayer Relief Act of
1997 (``1997 Act'') authorized the designation of two
additional Round I urban empowerment zones.
Businesses in the 11 Round I empowerment zones qualify
for the following tax incentives: (1) a 20-percent wage credit
for the first $15,000 of wages paid to a zone resident who
works in the empowerment zone,\10\ (2) an additional $20,000 of
section 179 expensing for qualifying zone property, and (3)
tax-exempt financing for certain qualifying zone facilities.
The tax incentives with respect to the empowerment zones
designated by OBRA 1993 generally are available during the 10-
year period of 1995 through 2004. The tax incentives with
respect to the two additional Round I empowerment zones
generally are available during the 10-year period of 2000
through 2009.\11\
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\10\ For wages paid in calendar years during the period 1994
through 2001, the credit rate is 20 percent. The credit rate is reduced
to 15 percent for calendar year 2002, 10 percent for calendar year
2003, and 5 percent for calendar year 2004. No wage credit is available
after 2004 in the original nine empowerment zones.
\11\ Except for the wage credit, which is reduced to 15 percent
for calendar year 2005, and then reduced by five percentage points in
each year in 2006 and 2007, with no wage credit available after 2007.
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Round II empowerment zones
The 1997 Act also authorized the designation of 20
additional empowerment zones (``Round II empowerment zones''),
of which 15 are located in urban areas and five are located in
rural areas. Businesses in the Round II empowerment zones are
not eligible for the wage credit, but are eligible to receive
up to $20,000 of additional section 179 expensing. Businesses
in the Round II empowerment zones also are eligible for more
generous tax-exempt financing benefits than those available in
the Round I empowerment zones. Specifically, the tax-exempt
financing benefits for the Round II empowerment zones are not
subject to the State private activity bond volume caps (but are
subject to separate per-zone volume limitations), and the per-
business size limitations that apply to the Round I empowerment
zones and enterprise communities (i.e., $3 million for each
qualified enterprise zone business with a maximum of $20
million for each principal user for all zones and communities)
do not apply to qualifying bonds issued for Round II
empowerment zones. The tax incentives with respect to the Round
II empowerment zones generally are available during the 10-year
period of 1999 through 2008.
HOUSE BILL
No provision. However, H.R. 5542 conforms and enhances
the tax incentives for the Round I and Round II empowerment
zones and extends their designations through December 31, 2009.
The bill also authorizes the designation of nine new
empowerment zones (``Round III empowerment zones'').
Extension of tax incentives for Round I and Round II empowerment zones
The designation of empowerment zone status for Round I
and II empowerment zones (other than the District of Columbia
Enterprise Zone) is extended through December 31, 2009. In
addition, the 20-percent wage credit is made available in all
Round I and II empowerment zones for qualifying wages paid or
incurred after December 31, 2001. The credit rate remains at 20
percent (rather than being phased down) through December 31,
2009, in Round I and Round II empowerment zones.
In addition, $35,000 (rather than $20,000) of additional
section 179 expensing is available for qualified zone property
placed in service in taxable years beginning after December 31,
2001, by a qualified business in any of the empowerment
zones.\12\ Businesses in the D.C. Enterprise Zone are entitled
to the additional section 179 expensing until the termination
of the D.C. Enterprise zone designation.
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\12\ The additional $35,000 of section 179 expensing is available
throughout all areas that are part of a designated empowerment zone,
including the non-contiguous ``developable sites'' that were allowed to
be part of the designated Round II empowerment zones under the 1997
Act.
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Businesses located in Round I empowerment zones (other
than the D.C. Enterprise Zone) \13\ also are eligible for the
more generous tax-exempt bond rules that apply under present
law to businesses in the Round II empowerment zones (sec.
1394(f)). The bill applies to tax-exempt bonds issued after
December 31, 2001. Bonds that have been issued by businesses in
Round I zones before January 1, 2002, are not taken into
account in applying the limitations on the amount of new
empowerment zone facility bonds that can be issued under the
bill.
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\13\ The present-law rules of sections 1394 and 1400A continue to
apply with respect to the D.C. Enterprise Zone.
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Nine new empowerment zones
The Secretaries of HUD and Agriculture are authorized to
designate nine additional empowerment zones (``Round III
empowerment zones''). Seven of the Round III empowerment zones
will be located in urban areas, and two will be located in
rural areas.
The eligibility and selection criteria for the Round III
empowerment zones are the same as the criteria that applied to
the Round II empowerment zones. The Round III empowerment zones
must be designated by January 1, 2002, and the tax incentives
with respect to the Round III empowerment zones generally are
available during the period beginning on January 1, 2002, and
ending on December 31, 2009.
Busineses in the Round III empowerment zones are eligible
for the same tax incentives that, under the bill, are available
to Round I and Round II empowerment zones (i.e., a 20-percent
wage credit, an additional $35,000 of section 179 expensing,
and the enhanced tax-exempt financing benefits presently
available to Round II empowerment zones).
GAO report
The bill provides that the GAO will audit and report to
Congress on January 31, 2004, and again in 2007 and 2010, on
the empowerment zone and enterprise community program and its
effect on poverty, unemployment, and economic growth within the
designated areas.
Effective date
The extension of the existing empowerment zone
designations is effective after the date of enactment. The
extension of the tax benefits to existing empowerment zones
(i.e., the expanded wage credit, the additional section 179
expensing, and the more generous tax-exempt bond rules)
generally is effective after December 31, 2001. The new Round
III empowerment zones must be designated by January 1, 2002,
and the tax incentives with respect to the Round III
empowerment zones generally are available during the period
beginning on January 1, 2002, and ending on December 31, 2009.
Senate Amendment
No provision. However, S. 3152 contains a provision that
conforms and enhances incentives of existing empowerment zones.
Specifically, the provision extends the designation of
empowerment zone status for Round I and II empowerment zones
through December 31, 2009. In addition, a 15-percent wage
credit is made available in all Round I and II empowerment
zones, effective in 2002 (except in the case of the two
additional Round I empowerment zones added by the 1997 Act, for
which the 15-percent wage credit takes effect in 2005 as
scheduled under present law). For all the empowerment zones,
the 15-percent wage credit expires on December 31, 2009.
As in the House bill, $35,000 (rather than $20,000) in
additional section 179 expensing is made available for
qualified zone property placed in service in taxable years
beginning after December 31, 2001, by a qualified business in
any of the empowerment zones. Similarly, S. 3152 extends to
businesses located in Round I empowerment zones the more
generous tax-exempt bond rules that apply under present law to
businesses in the Round II empowerment zones (sec. 1394(f)) for
bonds issued after December 31, 2001.
Businesses located in any empowerment zone also qualify
for a zero-percent capital gains rate for gain from the sale of
a qualifying zone assets acquired after date of enactment and
before January 1, 2010, and held for more than five years.
Assets that qualify for this incentive are similar to the types
of assets that qualify for the present-law zero percent capital
gains rate for qualifying D.C. Zone assets. The zero-percent
capital gains rate is limited to an aggregate amount not to
exceed $25 million of gain per taxpayer. Gain attributable to
the period before the date of enactment or after December 31,
2014, is not eligible for the zero-percent rate.
Effective date.--The extension of the existing
empowerment zone designations is effective after the date of
enactment. The additional section 179 expensing and the more
generous tax-exempt bond rules for the existing empowerment
zones is effective after December 31, 2001. The zero-percent
capital gains rate applies to qualifying property purchased
after the date of enactment. The 15-percent wage credit
generally is effective for qualifying wages paid after December
31, 2001 (December 31, 2004 for the two additional Round I
empowerment zones).
Conference Agreement
The conference agreement follows H.R. 5542. The
conference agreement also provides that the Secretaries of HUD
and Agriculture are authorized to designate a replacement
empowerment zone for each empowerment zone that becomes a
renewal community. The replacement empowerment zone will have
the same urban or rural character as the empowerment zone that
it is replacing.
2. Rollover of gain from the sale of qualified empowerment zone
investments (sec. 116 of the bill and new sec. 1397B of the
Code)
Present Law
In general, gain or loss is recognized on any sale,
exchange, or other disposition of property. A taxpayer (other
than a corporation) may elect to roll over without payment of
tax any capital gain realized upon the sale of qualified small
business stock held for more than six months where the taxpayer
uses the proceeds to purchase other qualified small business
stock within 60 days of the sale of the original stock.
House Bill
No provision. However, H.R. 5542 provides that a taxpayer
can elect to roll over capital gain from the sale or exchange
of any qualified empowerment zone asset purchased after the
date of enactment and held for more than one year (``original
zone asset'') where the taxpayer uses the proceeds to purchase
other qualifying empowerment zone assets in the same zone
(``replacement zone asset'') within 60 days of the sale of the
original zone asset. The holding period of the replacement zone
asset includes the holding period of the original zone asset,
except that the replacement asset must actually be held for
more than one year to qualify for another tax-free rollover.
The basis of the replacement zone asset is reduced by the gain
not recognized on the rollover. However, if the replacement
zone asset is qualified small business stock (as defined in
sec. 1202), the exclusion under section 1202 would not apply to
gain accrued on the original zone asset.\14\ A ``qualified
empowerment zone asset'' means an asset that would be a
qualified community asset if the empowerment zone were a
renewal community (and the asset is acquired after the date of
enactment of the bill). Assets in the D.C. Enterprise Zone are
not eligible for the tax-free rollover treatment.\15\
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\14\ See section 1045 for rollover of qualified small business
stock to other small business stock.
\15\ However, a qualifying D.C. Zone asset held for more than
five years is eligible for a 100-percent capital gains exclusion (sec.
1400B).
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Effective date.--The provision is effective for
qualifying assets purchased after the date of enactment.
senate amendment
No provision.
conference agreement
The conference agreement follows H.R. 5542.
3. Increased exclusion of gain from the sale of qualifying empowerment
zone stock (sec. 117 of the bill and sec. 1202 of the Code)
Present Law
Under present law, an individual, subject to limitations,
may exclude 50 percent of the gain \16\ from the sale of
qualifying small business stock held more than five years (sec.
1202).
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\16\ The portion of the capital gain included in income is
subject to a maximum regular tax rate of 28 percent, and 42 percent of
the excluded gain is a minimum tax preference.
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House Bill
No provision. However, H.R. 5542 increases the exclusion
for small business stock to 60 percent for stock purchased
after the date of enactment in a corporation that is a
qualified business entity and that is held for more than five
years. A ``qualified business entity'' means a corporation that
satisfies the requirements of a qualifying business under the
empowerment zone rules during substantially all the taxpayer's
holding period.
Effective date.--The provision is effective for qualified
stock purchased after the date of enactment.
Senate Amendment
No provision.
Conference Agreement
The conference agreement follows H.R. 5542.
C. New Markets Tax Credit (sec. 121 of the bill and new sec. 45D of the
Code)
present law
Tax incentives are available to taxpayers making
investments and loans in low-income communities. For example,
tax incentives are available to taxpayers that invest in
specialized small business investment companies licensed by the
SBA to make loans to, or equity investments in, small
businesses owned by persons who are socially or economically
disadvantaged.
house bill
No provision. However, H.R. 5542 includes a provision
that creates a new tax credit for qualified equity investments
made to acquire stock in a selected community development
entity (``CDE''). The maximum annual amount of qualifying
equity investments is capped as follows:
------------------------------------------------------------------------
Maximum qualifying equity
Calendar year investment
------------------------------------------------------------------------
2001.................................. $1.0 billion
2002-2003............................. $1.5 billion per year
2004-2005............................. $2.0 billion per year
2006-2007............................. $3.5 billion per year
------------------------------------------------------------------------
The amount of the new tax credit to the investor (either
the original purchaser or a subsequent holder) is (1) a five-
percent credit for the year in which the equity interest is
purchased from the CDE and the first two anniversary dates
after the interest is purchased from the CDE, and (2) a six
percent credit on each anniversary date thereafter for the
following four years.\17\ The taxpayer's basis in the
investment is reduced by the amount of the credit (other than
for purposes of calculating the capital gain exclusion under
sections 1202, 1400B, and 1400F). The credit is subject to the
general business credit rules.
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\17\ Thus, a credit would be available on the date on which the
investment is made and for each of the six anniversary dates
thereafter.
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A CDE is any domestic corporation or partnership (1)
whose primary mission is serving or providing investment
capital for low-income communities or low-income persons, (2)
that maintains accountability to residents of low-income
communities by their representation on any governing board or
on any advisory board of the CDE, and (3) is certified by the
Treasury Department as an eligible CDE.\18\ No later than 120
days after enactment, the Treasury Department shall issue
regulations that specify objective criteria to be used by the
Treasury to allocate the credits among eligible CDEs. In
allocating the credits, the Treasury Department will give
priority to entities with records of having successfully
provided capital or technical assistance to disadvantaged
businesses or communities,\19\ as well as to entities that
intend to invest substantially all of the proceeds from their
investors in businesses in which persons unrelated to the CDE
hold the majority of the equity interest.
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\18\ A specialized small business investment company and a
community development financial institution are treated as satisfying
the requirements for a CDE.
\19\ A record of having successfully provided capital or
technical assistance to disadvantaged businesses or communities could
be demonstrated by the past actions of the CDE itself or an affiliate
(e.g., in the case where a new CDE is established by a nonprofit
organization with a history of providing assistance to disadvantaged
communities).
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If a CDE fails to sell equity interests to investors up
to the amount authorized within five years of the
authorization, then the remaining authorization is canceled.
The Treasury Department can authorize another CDE to issue
equity interests for the unused portion. No authorization can
be made after 2014.
A ``qualified equity investment'' is defined as stock or
a similar equity interest acquired directly from a CDE in
exchange for cash. Substantially all of the investment proceeds
must be used by the CDE to make ``qualified low-income
community investments.'' Qualified low-income community
investments include: (1) capital or equity investments in, or
loans to, qualified active businesses located in low-income
communities,\20\ (2) certain financial counseling and other
services specified in regulations to businesses and residents
in low-income communities, (3) the purchase from another CDE of
any loan made by such entity that is a qualified low income
community investment, or (4) an equity investment in, or loans
to, another CDE.\21\ Treasury Department regulations will
provide guidance with respect to the ``substantially all''
standard.
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\20\ Thus, a qualified low-income community investment may
include an investment in a qualifying business in which the CDE (or a
related party) holds a significant interest. However, as previously
mentioned, in allocating the credits among eligible CDEs, the Treasury
Department will give priority to CDEs that intend to invest
substantially all of the proceeds from their investors in businesses in
which persons unrelated to the CDE hold the majority of the equity
interest. Persons are related to each other if they are described in
sections 267(b) or 707(b)(1).
\21\ If at least 85 percent of the aggregate gross assets of the
CDE are invested (directly or indirectly) in equity interests in, or
loans to, qualified active businesses located in low-income
communities, then there would be no need to trace the use of the
proceeds from the particular stock (or other equity ownership) issuance
with respect to which the credit is claimed.
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The stock or equity interest cannot be redeemed (or
otherwise cashed out) by the CDE for at least seven years. If
an entity fails to be a CDE during the seven-year period
following the taxpayer's investment, or if the equity interest
is redeemed by the issuing CDE during that seven-year period,
then any credits claimed with respect to the equity interest
are recaptured (with interest) and no further credits are
allowed.
A ``low-income community'' is defined as census tracts
with either (1) poverty rates of at least 20 percent (based on
the most recent census data), or (2) median family income which
does not exceed 80 percent of the greater of metropolitan area
income or statewide median family income (for a non-
metropolitan census tract, 80 percent of non-metropolitan
statewide median family income). In addition, the Secretary may
designate any area within any census tract as a ``low income
community'' provided that (1) the boundary of the area is
continuous,\22\ (2) the area (if it were a census tract) would
satisfy the poverty rate or median income requirements within
the targeted area, and (3) an inadequate access to investment
capital exists in the area.
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\22\ It is intended that the continuous boundary that delineates
the portion of the census tract as a ``low-income community'' should be
a pre-existing boundary (such as an established neighborhood,
political, or geographic boundary).
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A ``qualified active business'' is defined as a business
which satisfies the following requirements: (1) at least 50
percent of the total gross income of the business is derived
from the active conduct of trade or business activities in low-
income communities; (2) a substantial portion of the use of the
tangible property of such business is used in low-income
communities; (3) a substantial portion of the services
performed for such business by its employees is performed in
low-income communities; and (4) less than 5 percent of the
average aggregate of unadjusted bases of the property of such
business is attributable to certain financial property or to
collectibles (other than collectibles held for sale to
customers). There is no requirement that employees of the
business be residents of the low-income community.
Rental of improved commercial real estate located in a
low-income community is a qualified active business, regardless
of the characteristics of the commercial tenants of the
property. The purchase and holding of unimproved real estate is
not a qualified active business. In addition, a qualified
active business does not include (a) any business consisting
predominantly of the development or holding of intangibles for
sale or license; or (b) operation of any facility described in
sec. 144(c)(6)(B). A qualified active business can include an
organization that is organized on a non-profit basis.
The GAO will audit and report to Congress by January 31,
2004, and again in 2007 and 2010, on the new markets tax credit
program, including on all qualified community development
entities that receive an allocation under the new markets tax
credit program.
Effective date.--The provision is effective for qualified
investments made after December 31, 2000.
senate amendment
No provision. However, S. 3152 includes a provision that
creates a new markets tax credit that is similar to the
provision in H.R. 5542. However, under S. 3152, the maximum
annual amount of qualifying equity investments is capped as
follows:
------------------------------------------------------------------------
Maximum qualifying equity
Calendar year investment
------------------------------------------------------------------------
2002.................................. $1.0 billion
2003-2006............................. $1.5 billion per year
------------------------------------------------------------------------
Under S. 3152, if a CDE fails to sell equity interests to
investors up to the amount authorized within five years of the
authorization, then the remaining authorization is canceled.
The Treasury Department can authorize another CDE to issue
equity interests for the unused portion. No authorization can
be made after 2013.
Effective date.--The provision is effective for qualified
investments made after December 31, 2001.
conference Agreement
The conference agreement follows H.R. 5542. The
conference agreement also clarifies that a low-income community
can include a possession of the United States \23\ (and thus
investments in a U.S. possession may qualify for the new
markets tax credit).
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\23\ For this purpose, a U.S. possession means Puerto Rico, the
Virgin Islands, Guam, the Northern Mariana Islands, and American Samoa.
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D. Increase the Low-Income Housing Tax Credit Cap and Make Other
Modifications (secs. 131-137 of the bill and sec. 42 of the Code)
Present Law
In general
The low-income housing tax credit may be claimed over a
10-year period for the cost of rental housing occupied by
tenants having incomes below specified levels. The credit
percentage for newly constructed or substantially rehabilitated
housing that is not Federally subsidized is adjusted monthly by
the Internal Revenue Service so that the 10 annual installments
have a present value of 70 percent of the total qualified
expenditures. The credit percentage for new substantially
rehabilitated housing that is Federally subsidized and for
existing housing that is substantially rehabilitated is
calculated to have a present value of 30 percent qualified
expenditures.
Credit cap
The aggregate credit authority provided annually to each
State is $1.25 per resident, except in the case of projects
that also receive financing with proceeds of tax-exempt bonds
issued subject to the private activity bond volume limit and
certain carry-over amounts.
Expenditure test
Generally, the building must be placed in service in the
year in which it receives an allocation to qualify for the
credit. An exception is provided in the case where the taxpayer
has expended an amount equal to 10-percent or more of the
taxpayer's reasonably expected basis in the building by the end
of the calendar year in which the allocation is received and
certain other requirements are met.
Basis of building eligible for the credit
Buildings receiving assistance under the HOME investment
partnerships act (``HOME'') are not eligible for the enhanced
credit for buildings located in high cost areas (i.e.,
qualified census tracts and difficult development areas). Under
the enhanced credit, the 70-percent and 30-percent credit are
increased to a 91-percent and 39-percent credit, respectfully.
Eligible basis is generally limited to the portion of the
building used by qualified low-income tenants for residential
living and some common areas.
State allocation plans
Each State must develop a plan for allocating credits and
such plan must include certain allocation criteria including:
(1) project location; (2) housing needs characteristics; (3)
project characteristics; (4) sponsor characteristics; (5)
participation of local tax-exempts; (6) tenant populations with
special needs; and (7) public housing waiting lists. The State
allocation plan must also give preference to housing projects:
(1) that serve the lowest income tenants; and (2) that are
obligated to serve qualified tenants for the longest periods.
Credit administration
There are no explicit requirements that housing credit
agencies perform a comprehensive market study of the housing
needs of the low-income individuals in the area to be served by
the project, nor that such agency conduct site visits to
monitor for compliance with habitability standards.
Stacking rule
Authority to allocate credits remains at the State (as
opposed to local) government level unless State law provides
otherwise.\24\ Generally, credits may be allocated only from
volume authority arising during the calendar year in which the
building is placed in service, except in the case of: (1)
credits claimed on additions to qualified basis; (2) credits
allocated in a later year pursuant to an earlier binding
commitment made no later than the year in which the building is
placed in service; and (3) carryover allocations.
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\24\ For example, constitutional home rule cities in Illinois are
guaranteed their proportionate share of the $1.25 amount, based on
their population relative to that of the State as a whole.
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Each State annually receives low-income housing credit
authority equal to $1.25 per State resident for allocation to
qualified low-income projects.\25\ In addition to this $1.25
per resident amount, each State's ``housing credit ceiling''
includes the following amounts: (1) the unused State housing
credit ceiling (if any) of such State for the preceding
calendar year; \26\ (2) the amount of the State housing credit
ceiling (if any) returned in the calendar year; \27\ and (3)
the amount of the national pool (if any) allocated to such
State by the Treasury Department.
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\25\ A State's population, for these purposes, is the most recent
estimate of the State's population released by the Bureau of the Census
before the beginning of the year to which the limitation applies. Also,
for these purposes, the District of Columbia and the U.S. possessions
(i.e., Puerto Rico, the Virgin Islands, Guam, the Northern Marianas and
American Samoa) are treated as States.
\26\ The unused State housing credit ceiling is the amount (if
positive) of the previous year's annual credit limitation plus credit
returns less the credit actually allocated in that year.
\27\ Credit returns are the sum of any amounts allocated to
projects within a State which fail to become a qualified low-income
housing project within the allowable time period plus any amounts
allocated to a project within a State under an allocation which is
canceled by mutual consent of the housing credit agency and the
allocation recipient.
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The national pool consists of States' unused housing
credit carryovers. For each State, the unused housing credit
carryover for a calendar year consists of the excess (if any)
of the unused State housing credit ceiling for such year over
the excess (if any) of the aggregate housing credit dollar
amount allocated for such year over the sum of $1.25 per
resident and the credit returns for such year. The amounts in
the national pool are allocated only to a State which allocated
its entire housing credit ceiling for the preceding calendar
year, and requested a share in the national pool not later than
May 1 of the calendar year. The national pool allocation to
qualified States is made on a pro rata basis equivalent to the
fraction that a State's population enjoys relative to the total
population of all qualified States for that year.
The present-law stacking rule provides that a State is
treated as using its annual allocation of credit authority
($1.25 per State resident) and any returns during the calendar
year followed by any unused credits carried forward from the
preceding year's credit ceiling and finally any applicable
allocations from the National pool.
house bill
No provision. However, H.R. 5542 makes the following
changes in the low-income housing credit.
Credit cap
The bill increases the per-capita low-income housing
credit cap from $1.25 per capita to $1.50 per capita in
calendar year 2001 and to $1.75 per capita in calendar year
2002. Beginning in calendar year 2003, the per-capita portion
of the credit cap will be adjusted annually for inflation. For
small States, a minimum annual cap of $2 million is provided
for calendar years 2001 and 2002. Beginning in calendar year
2003, the small State minimum is adjusted for inflation.
Expenditure test
The bill allows a building which receives an allocation
in the second half of a calendar to qualify under the 10-
percent test if the taxpayer expends an amount equal to 10-
percent or more of the taxpayer's reasonably expected basis in
the building within six months of receiving the allocation
regardless of whether the 10-percent test is met by the end of
the calendar year.
Basis of building eligible for the credit
The bill makes three changes to the basis rules of the
credit. First, the definition of qualified census tracts for
purposes of the enhanced credit is expanded to include any
census tracts with a poverty rate of 25 percent or more.
Second, the bill extends the credit to a portion of the
building used as a community service facility not in excess of
10 percent of the total eligible basis in the building. A
community service facility is defined as any facility designed
to serve primarily individuals whose income is 60 percent or
less of area median income. Third, the bill provides that
assistance received under the Native American Housing
Assistance and Self-Determination Act of 1996 is not taken into
account in determining whether a building is Federally
subsidized for purposes of the credit. This allows such
buildings to qualify for something other than the 30-percent
credit generally applicable to Federally subsidized buildings.
State allocation plans
The bill strikes the plan criteria relating to
participation of local tax-exempts, replacing it with two other
criteria: tenant populations of individuals with children and
projects intended for eventual tenant ownership. It also
provides that the present-law criteria relating to sponsor
characteristics include whether the project involves the use of
existing housing as part of a community revitalization plan.
The bill adds a third category of housing projects to the
preferential list, for projects located in qualified census
tracts which contribute to a concerted community revitalization
plan.
Credit administration
The bill requires a comprehensive market study of the
housing needs of the low-income individuals in the area to be
served by the project and a written explanation available to
the general public for any allocation not made in accordance
with the established priorities and selection criteria of the
housing credit agency. They also require site inspections by
the housing credit agency to monitor compliance with
habitability standards applicable to the project.
Stacking rule
The bill modifies the stacking rule so that each State is
treated as using its allocation of the unused State housing
credit ceiling (if any) from the preceding calendar before the
current year's allocation of credit (including any credits
returned to the State) and then finally any National pool
allocations.
Effective date
The provision is generally effective for calendar years
beginning after December 31, 2000, and buildings placed-in-
service after such date in the case of projects that also
receive financing with proceeds of tax-exempt bonds subject to
the private activity bond volume limit which are issued after
such date.
Senate Amendment
Credit cap
No provision. However, S. 3152 increases the annual State
credit caps from $1.25 to $1.75 per resident beginning in 2001.
Also, beginning in 2001 the per capita cap for each State is
modified so that small population States are given a minimum of
$2 million of annual credit cap. The $1.75 per capita cap and
the $2 million amount are indexed for inflation beginning in
calendar 2002.
Expenditure test
No provision.
Basis of building eligible for the credit
The provision in S. 3152 relating to the treatment of
buildings receiving assistance under the Native American
Housing Assistance and Self-Determination Act of 1996 is the
same as one of the provisions in H.R. 5542.
State allocation plans
No provision.
Credit administration
No provision.
Stacking rule
Same as H.R. 5542.
Effective date
The provisions are effective for calendar years beginning
after December 31, 2000 and buildings placed-in-service after
such date in the case of projects that also receive financing
with proceeds of tax-exempt bonds which are issued after such
date subject to the private activity bond volume limit.
Conference Agreement
The conference agreement follows H.R. 5542.
E. Accelerate Scheduled Increase in State Volume Limits on Tax-Exempt
Private Activity Bonds (sec. 151 of the bill and sec. 146 of the Code)
Present Law
Interest on bonds issued by States and local governments
is excluded from income if the proceeds of the bonds are used
to finance activities conducted and paid for by the
governmental units (sec. 103). Interest on bonds issued by
these governmental units to finance activities carried out and
paid for by private persons (``private activity bonds'') is
taxable unless the activities are specified in the Internal
Revenue Code. Private activity bonds on which interest may be
tax-exempt include bonds for privately operated transportation
facilities (airports, docks and wharves, mass transit, and high
speed rail facilities), privately owned and/or provided
municipal services (water, sewer, solid waste disposal, and
certain electric and heating facilities), economic development
(small manufacturing facilities and redevelopment in
economically depressed areas), and certain social programs
(low-income rental housing, qualified mortgage bonds, student
loan bonds, and exempt activities of charitable organizations
described in sec. 501(c)(3)).
The volume of tax-exempt private activity bonds that
States and local governments may issue for most of these
purposes in each calendar year is limited by State-wide volume
limits. The current annual volume limits are $50 per resident
of the State or $150 million if greater. The volume limits do
not apply to private activity bonds to finance airports, docks
and wharves, certain governmentally owned, but privately
operated solid waste disposal facilities, certain high speed
rail facilities, and to certain types of private activity tax-
exempt bonds that are subject to other limits on their volume
(qualified veterans' mortgage bonds and certain ``new''
empowerment zone and enterprise community bonds).
The current annual volume limits that apply to private
activity tax-exempt bonds increase to $75 per resident of each
State or $225 million, if greater, beginning in calendar year
2007. The increase is, ratably phased in, beginning with $55
per capita or $165 million, if greater, in calendar year 2003.
House Bill
No provision. However, H.R. 5542 increases the State
volume limits from the greater of $50 per resident or $150
million to the greater of $62.50 per resident or $187.5 million
in calendar year 2001. The volume limit will increase further,
to the greater of $75 per resident or $225 million in calendar
year 2002. Beginning in calendar year 2003, the volume limit
will be adjusted annually for inflation.
Effective date.--The provision is effective beginning in
calendar year 2001.
Senate Amendment
No provision. However, S. 3152 increases the present-law
annual State private activity bond volume limits to $75 per
resident of each State or $225 million (if greater) beginning
in calendar year 2001. In addition, the $75 per resident and
the $225 million State limit will be indexed for inflation
beginning in calendar year 2002.
Effective date.--The provisions are effective beginning
in calendar year 2001.
Conference Agreement
The conference agreement follows H.R. 5542.
F. Extension and Modification to Expensing of Environmental Remediation
Costs (sec. 152 of the bill and sec. 198 of the Code)
present law
Taxpayers can elect to treat certain environmental
remediation expenditures that would otherwise be chargeable to
capital account as deductible in the year paid or incurred
(sec. 198). The deduction applies for both regular and
alternative minimum tax purposes. The expenditure must be
incurred in connection with the abatement or control of
hazardous substances at a qualified contaminated site.
A ``qualified contaminated site'' generally is any
property that: (1) is held for use in a trade or business, for
the production of income, or as inventory; (2) is certified by
the appropriate State environmental agency to be located within
a targeted area; and (3) contains (or potentially contains) a
hazardous substance (so-called ``brownfields''). Targeted areas
are defined as: (1) empowerment zones and enterprise
communities as designated under present law; (2) sites
announced before February 1997, as being subject to one of the
76 Environmental Protection Agency (``EPA'') Brownfields
Pilots; (3) any population census tract with a poverty rate of
20 percent or more; and (4) certain industrial and commercial
areas that are adjacent to tracts described in (3) above.
However, sites that are identified on the national priorities
list under the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 cannot qualify as
targeted areas.
Eligible expenditures are those paid or incurred before
January 1, 2002.
house bill
No provision. However, H.R. 5542 extends the expiration
date for eligible expenditures to include those paid or
incurred before January 1, 2004.
In addition, the bill eliminates the targeted area
requirement, thereby, expanding eligible sites to include any
site containing (or potentially containing) a hazardous
substance that is certified by the appropriate State
environmental agency. However, expenditures undertaken at sites
that are identified on the national priorities list under the
Comprehensive Environmental Response, Compensation, and
Liability Act of 1980 would continue to not qualify as eligible
expenditures.
By extending and expanding section 198, the bill is not
intended to displace the general tax law principle regarding
expensing versus capitalization of expenditures which continues
to apply to environmental remediation efforts not specifically
covered under section 198.
Effective date.--The provision to extend the expiration
date if effective upon the date of enactment. The provision to
expand the class of eligible sites is effective for
expenditures paid or incurred after the date of enactment.
senate amendment
No provision. However, S. 3152 includes a provision
identical to that of the House bill provision.
conference agreement
The conference agreement follows H.R. 5542.
G. Expansion of District of Columbia Homebuyer Tax Credit (sec. 153 of
the bill and sec. 1400C of the Code)
present law
First-time homebuyers of a principal residence in the
District of Columbia are eligible for a nonrefundable tax
credit of up to $5,000 of the amount of the purchase price. The
$5,000 maximum credit applies both to individuals and married
couples. Married individuals filing separately can claim a
maximum credit of $2,500 each. The credit phases out for
individual taxpayers with adjusted gross income between $70,000
and $90,000 ($110,000-$130,000 for joint filers). For purposes
of eligibility, ``first-time homebuyer'' means any individual
if such individual did not have a present ownership interest in
a principal residence in the District of Columbia in the one
year period ending on the date of the purchase of the residence
to which the credit applies. The credit is scheduled to expire
for residences purchased after December 31, 2001.
house bill
No provision. However, H.R. 5542 extends the first-time
homebuyer credit for two years (through December 31, 2003).
Effective date.--The provision is effective on the date
of enactment.
senate amendment
No provision. However, S. 3152 includes a provision that
extends the first-time homebuyer credit for two years, through
December 31, 2003. The provision also extends the phase-out
range for married individuals filing a joint return so that it
is twice that of individuals. Thus, under the provision, the
District of Columbia homebuyer credit is phased out for joint
filers with adjusted gross income between $140,000 and
$180,000.
Effective date.--The provision is effective for taxable
years beginning after December 31, 2000.
conference agreement
The conference agreement follows H.R. 5542.
H. Extension of D.C. Enterprise Zone (sec. 154 of the bill and secs.
1400, 1400A and 1400B of the Code)
present law
The Taxpayer Relief Act of 1997 designated certain
economically depressed census tracts within the District of
Columbia as the District of Columbia Enterprise Zone (the
``D.C. Zone''), within which businesses and individual
residents are eligible for special tax incentives. The D.C.
Zone designation remains in effect for the period from January
1, 1998, through December 31, 2002. In addition to the tax
incentives available with respect to a Round I empowerment zone
(including a 20-percent wage credit), the D.C. Zone also has a
zero-percent capital gains rate that applies to gain from the
sale of certain qualified D.C. Zones assets acquired after
December 31, 1997 and held for more than five years.
With respect to the tax-exempt financing incentives, the
D.C. Zone generally is treated like a Round I empowerment zone;
therefore, the issuance of such bonds is subject to the
District of Columbia's annual private activity bond volume
limitation. However, the aggregate face amount of all
outstanding qualified enterprise zone facility bonds per
qualified D.C. Zone business may not exceed $15 million (rather
than $3 million, as is the case for Round I empowerment
zones).\28\
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\28\ Section 1400A(a).
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house bill
No provision.
senate amendment
No provision. However, S. 3152 includes a provision that
extends the D.C. Zone designation through December 31, 2006.
conference agreement
The conference agreement follows S. 3152, except that the
D.C. Zone designation is extended for one year (through
December 31, 2003).
I. Extension and Modification of Enhanced Deduction for Corporate
Donations of Computer Technology (sec. 155 of the bill and sec.
170(e)(6) of the Code)
present law
The maximum charitable contribution deduction that may be
claimed by a corporation for any one taxable year is limited to
10 percent of the corporation's taxable income for that year
(disregarding charitable contributions and with certain other
modifications) (sec. 170(b)(2)). Corporations also are subject
to certain limitations based on the type of property
contributed. In the case of a charitable contribution of short-
term gain property, inventory, or other ordinary income
property, the amount of the deduction generally is limited to
the taxpayer's basis (generally, cost) in the property.
However, special rules in the Code provide an augmented
deduction for certain corporate contributions. Under these
special rules, the amount of the augmented deduction is equal
to the lesser of (1) the basis of the donated property plus
one-half of the amount of ordinary income that would have been
realized if the property had been sold, or (2) twice the basis
of the donated property.
Section 170(e)(6) allows corporate taxpayers an augmented
deduction for qualified contributions of computer technology
and equipment (i.e., computer software, computer or peripheral
equipment, and fiber optic cable related to computer use) to be
used within the United States for educational purposes in
grades K-12. Eligible donees are: (1) any educational
organization that normally maintains a regular faculty and
curriculum and has a regularly enrolled body of pupils in
attendance at the place where its educational activities are
regularly carried on; and (2) tax-exempt charitable
organizations that are organized primarily for purposes of
supporting elementary and secondary education. A private
foundation also is an eligible donee, provided that, within 30
days after receipt of the contribution, the private foundation
contributes the property to an eligible donee described above.
Qualified contributions are limited to gifts made no
later than two years after the date the taxpayer acquired or
substantially completed the construction of the donated
property. In addition, the original use of the donated property
must commence with the donor or the donee. Accordingly,
qualified contributions generally are limited to property that
is no more than two years old. Such donated property could be
computer technology or equipment that is inventory or
depreciable trade or business property in the hands of the
donor.
Donee organizations are not permitted to transfer the
donated property for money or services (e.g., a donee
organization cannot sell the computers). However, a donee
organization may transfer the donated property in furtherance
of its exempt purposes and be reimbursed for shipping,
installation, and transfer costs. For example, if a corporation
contributes computers to a charity that subsequently
distributes the computers to several elementary schools in a
given area, the charity could be reimbursed by the elementary
schools for shipping, transfer, and installation costs.
The special treatment applies only to donations made by C
corporations. S corporations, personal holding companies, and
service organizations are not eligible donors.
The provision is scheduled to expire for contributions
made in taxable years beginning after December 31, 2000.
house bill
No provision. However, H.R. 5542 includes a provision
that extends the current enhanced deduction for donations of
computer technology and equipment through December 31, 2003,
and expands the enhanced deduction to include donations to
public libraries. H.R. 5542 provides that qualified
contributions include gifts made no later than three years
after the date the taxpayer acquired or substantially completed
the construction of the donated property.
Effective date.--The provision is effective for
contributions made after December 31, 2000.
senate amendment
No provision. However, S. 3152 includes a provision that
extends the current enhanced deduction for donations of
computer technology and equipment through December 31, 2003. In
addition, S. 3152 expands the enhanced deduction to include
donations to public libraries.
Effective date.--The provision is effective upon the date
of enactment.
conference agreement
The conference agreement follows H.R. 5542 with a
modification that contributions may be made by a person that
has reacquired the property (i.e., if a computer manufacturer
reacquires the computer from the original user and then
contributes it). Such reacquired property must be contributed
within 3 years of the date the original construction of the
property was substantially completed. The conferees anticipate
that for purposes of computing the enhanced deduction for a
reacquirer, the Secretary will provide guidance in determining
the retail value of donated computers (or other computer
technology) in situations in which the number of actual retail
sales of used computers similar to those donated is small in
relation to the number of such computers that are donated.
In addition, the conference agreement provides that the
Secretary may prescribe by regulation standards to ensure that
the donations meet minimum functionality and suitability
standards for educational purposes.
J. Treatment of Indian Tribes as Non-Profit Organizations and State or
Local Governments For Purposes of the Federal Unemployment Tax
(``FUTA'') (sec. 156 of the bill and sec. 3306 of the Code)
present law
Present law imposes a net tax on employers equal to 0.8
percent of the first $7,000 paid annually to each employee. The
current gross FUTA tax is 6.2 percent, but employers in States
meeting certain requirements and having no delinquent loans are
eligible for a 5.4 percent credit making the net Federal tax
rate 0.8 percent. Both non-profit organizations and State and
local governments are not required to pay FUTA taxes. Instead
they may elect to reimburse the unemployment compensation
system for unemployment compensation benefits actually paid to
their former employees. Generally, Indian tribes are not
eligible for the reimbursement treatment allowable to non-
profit organizations and State and local governments.
house bill
No provision. However, H.R. 5542 provides that an Indian
tribe (in including any subdivision, subsidiary, or business
enterprise chartered and wholly owned by an Indian tribe) is
treated like a non-profit organization or State or local
government for FUTA purposes (i.e., given an election to choose
the reimbursement treatment).
Effective date.--The provision generally is effective
with respect to service performed beginning on or after the
date of enactment. Under a transition rule, service performed
in the employ of an Indian tribe is not treated as employment
for FUTA purposes if: (1) it is service which is performed
before the date of enactment and with respect to which FUTA tax
has not been paid; and (2) such Indian tribe reimburses a State
unemployment fund for unemployment benefits paid for service
attributable to such tribe for such period.
senate amendment
No provision. However, S. 3152 is the same as H.R. 5542.
conference agreement
The conference agreement follows H.R. 5542 and S. 3152.
TITLE II.--MEDICAL SAVINGS ACCOUNTS (``MSAs'')
(sec. 201 of the bill and sec. 220 of the Code)
Present Law
Within limits, contributions to a medical savings account
(``MSA'') \29\ are deductible in determining adjusted gross
income (``AGI'') if made by an eligible individual and are
excludable from gross income and wages for employment tax
purposes if made by the employer of an eligible individual.
Earnings on amounts in an MSA are not currently taxable.
Distributions from an MSA for medical expenses are not taxable.
Distributions not used for medical expenses are taxable. In
addition, distributions not used for medical expenses are
subject to an additional 15-percent tax unless the distribution
is made after age 65, death, or disability.
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\29\ In general, an MSA is a trust or custodial account created
exclusively for the benefit of the account holder and is subject to
rules similar to those applicable to individual retirement
arrangements. The trustee of an MSA can be a bank, insurance company,
or other person who demonstrates to the satisfaction of the Secretary
that the manner in which such person will administer the trust will be
consistent with applicable requirements.
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MSAs are available to self-employed individuals \30\ and
to employees covered under an employer-sponsored high
deductible plan of a small employer. An employer is a small
employer if it employed, on average, no more than 50 employees
on business days during either the preceding or the second
preceding year.
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\30\ Self-employed individuals include more than 2-percent
shareholders of S corporations who are treated as partners for purposes
of fringe benefit rules pursuant to section 1372. Self-employed
individuals are eligible for an MSA regardless of the size of the
entity for which the individual performs services.
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In order for an employee of a small employer to be
eligible to make MSA contributions (or to have employer
contributions made on his or her behalf), the employee must be
covered under an employer-sponsored high deductible health plan
(see the definition below) and must not be covered under any
other health plan (other than a plan that provides certain
permitted coverage).
Similarly, in order to be eligible to make contributions
to an MSA, a self-employed individual must be covered under a
high deductible health plan and no other health plan (other
than a plan that provides certain permitted coverage). A self-
employed individual is not an eligible individual (by reason of
being self-employed) if the high deductible plan under which
the individual is covered is established or maintained by an
employer of the individual (or the individual's spouse).
The maximum annual contribution that can be made to an
MSA for a year is 65 percent of the deductible under the high
deductible plan in the case of individual coverage and 75
percent of the deductible in the case of family coverage.
A high deductible plan is a health plan with an annual
deductible of at least $1,550 and no more than $2,350 in the
case of individual coverage and at least $3,100 and no more
than $4,650 in the case of family coverage. In addition, the
maximum out-of-pocket expenses with respect to allowed costs
(including the deductible) must be no more than $3,100 in the
case of individual coverage and no more than $5,700 in the case
of family coverage.\31\ A plan does not fail to qualify as a
high deductible plan merely because it does not have a
deductible for preventive care as required by State law. A plan
does not qualify as a high deductible health plan if
substantially all of the coverage under the plan is for
permitted coverage. In the case of a self-insured plan, the
plan must in fact be insurance (e.g., there must be appropriate
risk shifting) and not merely a reimbursement arrangement.
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\31\ These dollar amounts are for 2000. These amounts are indexed
for inflation in $50 increments.
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The number of taxpayers benefiting annually from an MSA
contribution is limited to a threshold level (generally 750,000
taxpayers). If it is determined in a year that the threshold
level has been exceeded (called a ``cut-off'' year) then, in
general, for succeeding years during the 4-year pilot period
1997-2000, only those individuals who (1) made an MSA
contribution or had an employer MSA contribution for the year
or a preceding year (i.e., are active MSA participants) or (2)
are employed by a participating employer, is eligible for an
MSA contribution. In determining whether the threshold for any
year has been exceeded, MSAs of individuals who were not
covered under a health insurance plan for the six month period
ending on the date on which coverage under a high deductible
plan commences would not be taken into account.\32\ However, if
the threshold level is exceeded in a year, previously uninsured
individuals are subject to the same restriction on
contributions in succeeding years as other individuals. That
is, they would not be eligible for an MSA contribution for a
year following a cut-off year unless they are an active MSA
participant (i.e., had an MSA contribution for the year or a
preceding year) or are employed by a participating employer.
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\32\ permitted coverage does not constitute coverage under a
health insurance plan for this purpose.
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The number of MSAs established has not exceeded the
threshold level.
After December 31, 2000, no new contributions may be made
to MSAs except by or on behalf of individuals who previously
had MSA contributions and employees who are employed by a
participating employer. An employer is a participating employer
if (1) the employer made any MSA contributions for any year to
an MSA on behalf of employees or (2) at least 20 percent of the
employees covered under a high deductible plan made MSA
contributions of at least $100 in the year 2000.
Self-employed individuals who made contributions to an
MSA during the period 1997-2000 also may continue to make
contributions after 2000.
House Bill
No provision. However, H.R. 5542 extends the MSA program
through 2002. The same rules that apply to the limit on MSAs
for 1999 apply to 2000 and 2001. Thus, for example, the
threshold level in those years is 750,000 taxpayers.
Effective date.--The provision is effective on the date
of enactment.
Senate Amendment
No provision.
Conference Agreement
The conference report follows H.R. 5542, except that MSAs
are renamed as Archer MSAs. The conference agreement clarifies
that, as under present law, the cap and reporting requirements
do not apply for 2000.
TITLE III.--ADMINISTRATIVE AND TECHNICAL CORRECTIONS PROVISIONS
Subtitle A.--Administration Provisions
A. Exempt Certain Reports From Elimination Under the Federal Reports
Elimination and Sunset Act of 1995 (sec. 301 of the bill)
present law
Section 303 of the Federal Reports Elimination and Sunset
Act of 1995 eliminates many periodic Federal reporting
requirements, effective May 15, 2000.
house bill
No provision. However, H.R. 5542 exempts certain reports
from elimination and sunset pursuant to the Federal Reports
Elimination and Sunset Act of 1995.
senate amendment
No provision.
conference agreement
The conference agreement follows H.R. 5542.
B. Extension of Deadlines for IRS Compliance with Certain Notice
Requirements (sec. 302 of the bill and secs. 6631 and 6751(a) of the
Code)
present law
The Internal Revenue Service Restructuring and Reform Act
of 1998 (``IRS Restructing Act of 1998'') imposed several
notice requirements relating to penalties, interest and
installment agreements. Section 6715 of the Code, added by
section 3306 of the IRS Restructing Act of 1998, requires that
each notice imposing a penalty include the name of the penalty,
the Code section under which the penalty is imposed, and a
computation of the penalty.\33\ This requirement applies to
notices issued, and penalties assessed, after December 31,
2000.\34\
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\33\ Sec. 6715(a).
\34\ P.L. 105-206, sec. 3306.
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Section 6631 of the Code, added by section 3308 of the
IRS Restructuring Act of 1998, requires that every IRS notice
sent to an individual taxpayer that includes an amount of
interest required to be paid by the taxpayer also include a
detailed computation of the interest charged and a citation to
the Code section under which such interest is imposed. The
provision is effective for notices issued after December 31,
2000.
Section 3506 of the IRS Restructuring Act of 1998
requires the IRS to send every taxpayer in an installment
agreement an annual statement of the initial balance owed, the
payments made during the year, and the remaining balance. The
provision became effective on July 1, 2000.
house bill
No provision. However, H.R. 5542 extend the deadlines for
complying with the penalty, interest, and installment agreement
notice requirements. Specifically, the annual installment
agreement notice requirement is extended from July 1, 2000, to
September 1, 2001. The deadlines for complying with the notice
requirements relating to the computation of penalties and
interest \35\ are both extended to June 30, 2001. In addition,
for penalty notices issued after June 30, 2001, and before July
1, 2003, the notice requirements will be treated as met if the
notice contains a telephone number at which the taxpayer can
request a copy of the taxpayer's assessment and payment history
with respect to such penalty. Similarly, for interest notices
issued after June 30, 2001, and before July 1, 2003, the notice
requirements will be treated as met if such notice contains a
telephone number at which the taxpayer can request a copy of
the taxpayer's payment history relating to interest amounts
included in such notice.
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\35\ Secs. 6715(a) and 6631.
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Effective date.--The provision is effective on the date
of enactment.
Senate amendment
No provision.
Conference agreement
The conference agreement follows H.R. 5542.
C. Extension of Authority for Undercover Operations (sec. 303 of the
bill and sec. 7608 of the Code)
present law
The Anti-Drug Abuse Act of 1988 exempted IRS undercover
operations from the otherwise applicable statutory restrictions
controlling the use of Government funds (which generally
provide that all receipts must be deposited in the general fund
of the Treasury and all expenses be paid out of appropriated
funds). In general, the exemption permits the IRS to ``churn''
the income earned by an undercover operation to pay additional
expenses incurred in the undercover operation. The IRS is
required to conduct a detailed financial audit of large
undercover operations in which the IRS is churning funds and to
provide an annual audit report to the Congress on all such
large undercover operations. The exemption originally expired
on December 31, 1989, and was extended by the Comprehensive
Crime Control Act of 1990 to December 31, 1991. In the Taxpayer
Bill of Rights II (Public Law 104-168), the authority to churn
funds from undercover operations was extended for five years,
through 2000.
house bill
No provision. However, H.R. 5542 extends the authority of
the IRS to ``churn'' the income earned from undercover
operations for an additional five years, through 2005.
Effective date.--The provision is effective on the date
of enactment.
Senate amendment
No provision.
conference agreement
The conference agreement follows H.R. 5542.
D. Competent Authority and Pre-Filing Agreements (sec. 304 of the bill
and secs. 6103, 6110, and new sec. 6105 of the Code)
present law
Section 6103
Section 6103 of the Code sets forth the general rule that
returns and return information are confidential. A return is
any tax return, information return, declaration of estimated
tax, or claim for refund filed under the Code on behalf of or
with respect to any person. The term return also includes any
amendment or supplement, including supporting schedules or
attachments or lists, which are supplemental to or are part of
a filed return. Return information is defined broadly. It
includes the following information:
A taxpayer's identity, the nature, source or amount
of income, payments, receipts, deductions, exemptions,
credits, assets, liabilities, net worth, tax liability,
tax withheld, deficiencies, over assessments, or tax
payments;
Whether the taxpayer's return was, is being, or
will be examined or subject to other investigations or
processing;
Any other data, received by, recorded by, prepared
by, furnished to, or collected by the Secretary with
respect to a return or with respect to the
determination of the existence, or possible existence,
of liability (or the amount thereof) of any person
under this title for any tax, penalty, interest, fine,
forfeiture, or other imposition, or offense;\36\
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\36\ Sec. 6103(b)(2)(A).
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Any part of any written determination or any
background file document relating to such written
determination which is not open to the public
inspection under section 6110,\37\ and
---------------------------------------------------------------------------
\37\ Sec. 6103(b)(2)(B).
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Any advance pricing agreement entered into by a
taxpayer and the Secretary and any background
information related to the agreement or any application
for an advance pricing agreement.
The term ``return information'' does not include data in
a form that cannot be associated with or otherwise identify,
directly or indirectly, a particular taxpayer.
Secrecy of information exchanged under tax treaties
U.S. tax treaties typically contain articles governing
the exchange of information. These articles generally provide
for the exchange of information between the tax authorities of
the two countries when such information is necessary for
carrying out provisions of the treaty or of the countries'
domestic tax laws. Individuals referred to as ``competent
authorities'' are designated by each country to make written
requests for information and to receive information.\38\
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\38\ The U.S. competent authority is the Secretary of the
Treasury or his delegate. The U.S. competent authority function has
been delegated to the Commissioner of Internal Revenue, who has
redelegated the authority to the Director, International. On
interpretive issues, the latter acts with the concurrence of the
Associate Chief Counsel (International) of the IRS.
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The exchange of information articles typically cover
information relating to taxes to which the treaty applies, but
can also apply to other taxes (e.g., excise taxes) not covered
by the treaty. Many of the treaties permit the exchange of
information even if the taxpayer involved is not a resident of
one of the treaty countries. The exchange of information
articles may be similar to, or represent a variation on,
Article 26 of the 1996 U.S. model income tax treaty.
Information that is received under the exchange of
information articles is subject to secrecy clauses contained in
the treaties. In this regard, the country requesting
information under the treaties typically is required to treat
any information received as secret in the same manner as
information obtained under its domestic laws. In general,
disclosure is not permitted other than to persons or
authorities involved in the administration, assessment,
collection or enforcement of taxes to which the treaty applies.
For example, disclosure generally can be made to legislative
bodies, such as the tax-writing committees of the Congress, and
the General Accounting Office for purposes of overseeing the
administration of U.S. tax laws.
In addition to the exchange of information articles in
U.S. tax treaties, exchange of information provisions are
contained in tax information exchange agreements entered into
between the United States and another country.\39\ In addition,
information may be exchanged pursuant to the Convention on
Mutual Administrative Assistance in Tax Matters developed by
the Council of Europe and the Organization for Economic
Cooperation and Development (the ``Multilateral Mutual
Assistance Convention''), which limits the use of exchanged
information and permits disclosure of such information only
with the prior authorization of the competent authority of the
country providing the information.\40\ The United States has
also entered into a number of implementation and coordination
agreements with possessions that provide for the exchange of
tax information. Moreover, the United States has entered into
various mutual legal assistance treaties with other countries,
some of which can be used to obtain tax information in criminal
investigations.
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\39\ Sections 274(h)(6)(C) and 927(e)(3) specifically provide the
Secretary of the Treasury the authority to enter into tax information
exchange agreements. This eliminates the need for Senate ratification,
which is required for a tax treaty. In addition, all tax information
exchange agreements are required to include specific non-disclosure
provisions which provide that ``information received by either country
will be disclosed only to persons or authorities (including courts and
administrative bodies) involved in the administration or oversight of,
or in the determination of appeals in respect of, taxes of the United
States, or the beneficiary country and will be used by such persons or
authorities only for such purposes.'' Sec. 274(h)(6)C)(i).
\40\ The U.S. Senate ratified the Multilateral Mutual Assistance
Convention, subject to certain reservations, in September 1990. The
Multilateral Mutual Assistance Convention entered into force on April
1, 1995, and has been signed by the following countries: Denmark,
Finland, Iceland, the Netherlands, Norway, Sweden, and the United
States.
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Both the confidentiality provisions of section 6103, as
well as treaty secrecy provisions can cover return information.
Section 6110 and section 7121
Section 6110 of the Code provides for disclosure of
written determinations. With certain exceptions, section 6110
makes the text of any written determination the Internal
Revenue Service (``IRS'') issues available for pubic
inspection. A written determination is any ruling,
determination letter, technical advice memorandum, or Chief
Counsel advice. The IRS is required to redact certain material
before making these documents publicly available.\41\ Among the
information to be redacted is information specifically exempted
from disclosure by any statute (other than Title 26) that is
applicable to the IRS. Once the IRS makes the written
determination publicly available, the background file documents
associated with such written determination are available for
public inspection upon written request. Section 6110 defines
``background file documents'' as any written material submitted
by the taxpayer or other requester in support of the request.
Background file documents also include any communications
between the IRS and persons outside the IRS concerning such
written determination that occur before the IRS issues the
determination.
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\41\ For rulings, determination letters and technical advice
memorandum, section 6110(c) provides the following exemptions from
disclosure:
(1) The names, addresses, and other identifying details of the
person to whom the written determination pertains and of any other
person, other than a person with respect to whom a notation is made
under subsection (d)(1) (relating to third party contacts), identified
in the written determination or any background file document;
(2) Information specifically authorized under criteria
established by an Executive order to be kept secret in the interest of
national defense or foreign policy, and which is in fact properly
classified pursuant to such Executive order;
(3) Information specifically exempted from disclosure by any
statute (other than [Title 26] which is applicable to the Internal
Revenue Service;
(4) Trade secrets and commercial or financial information
obtained from a person and privileges or confidential;
(5) Information the disclosure of which would constitute a
clearly unwarranted invasion of personal privacy;
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Section 6110 was added to the Code in 1976. The
legislative history provided that a written determination would
not be considered a ruling, technical advice memorandum, or
determination letter, unless the document satisfies three
criteria:
(1) The document recites the relevant facts;
(2) The document explains the applicable provisions
of law; and
(3) The document shows the application of law to
the facts.\42\
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\42\ H.R. Rep. 94-658, at 315 (1976).
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The legislative history further provided that section
6110 ``does not require public disclosure of a closing
agreement entered into between the IRS and a taxpayer which
finally determines the taxpayer's tax liability with respect to
a taxable year. . . . Your committee understands that a closing
agreement is generally the result of a negotiated settlement
and, as such, does not necessarily represent the IRS view of
the law. Your committee intends, however, that the closing
agreement exception is not to be used as a means of avoiding
public disclosure of determinations which, under present
practice, would be issued in a form which would be open to
public inspection [under the bill].'' \43\
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\43\ Id. at 316.
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Closing agreements are entered into under the authority
of section 7121. Closing agreements finally and conclusively
settle a tax issue between the IRS and a taxpayer. Closing
agreements may: (1) determine a taxpayer's entire tax liability
for a previous tax period; or (2) fix the tax treatment of one
or more specific items affecting tax liability for any tax
period. Thus, closing agreements may settle the treatment of a
specific item for periods ending after the execution of the
agreement. A single closing agreement may cover both the
determination of a taxpayer's entire tax liability for a
previous tax period and fix the tax treatment of specific items
for any tax period.
Freedom of Information Act
The Freedom of Information Act (``FOIA''), enacted in
1966, established a statutory right to access government
information. While the purpose of section 6103 is to restrict
access to returns and return information, the basic purpose of
the FOIA is to ensure that the public has access to government
documents. In general, the FOIA provides that any person has a
right of access to Federal agency records, except to the extent
that such records (or portions thereof) are protected from
disclosure by one of nine exemptions or by one of three special
law enforcement record exclusions. Exemption 3 of the FOIA
allows the withholding of information prohibited from
disclosure by another statute if certain requirements are
met.\44\ The right of access is enforceable in court.
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\44\ 5 U.S.C. sec. 552(b)(3).
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Pending FOIA requests and litigation involving IRS records
Records covered by treaty secrecy clauses
A publisher of tax related material and commentary has
made a FOIA request for the disclosure of competent authority
agreements. The request has been pending since March 14,
2000.\45\ The IRS has not denied the request, nor has it
produced any documents responsive to the request. At this time,
no suit has been filed to compel disclosure of these documents,
although such a suit may be brought in the future.
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\45\ The initial FOIA request of March 14, 2000, covered all
competent authority agreements executed for the United States from
January 1, 1990, to date. In response to a request from the Department
of Treasury, by letter dated April 17, 2000, the FOIA request was
narrowed to cover competent authority agreements executed between 1997
and 1999. The right to pursue the 1990 through 1996 agreements,
however, was reserved.
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In connection with a separate request, the IRS was sued
under the FOIA to compel disclosure of Field Service Advice
memoranda (``FSAs'').\46\ FSAs are prepared by attorneys in the
IRS National Office of the Office of Chief Counsel. They are
prepared in response to requests from IRS field personnel for
legal guidance, usually with respect to issues relating to a
particular taxpayer. FSAs usually contain a statement of
issues, facts, legal analysis and conclusions. The primary
purpose of FSAs is to ensure that IRS field personnel apply the
law correctly and uniformly. The D.C. Circuit determined that
FSAs are subject to disclosure. However, the court remanded the
case to district court to address assertions of privilege,
including those based on treaty secrecy. A decision on this
issue by the district court is still pending.\47\
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\46\ Tax Analysts v. IRS, 117 F.3d 607 (D.C. Cir. 1997).
\47\ Tax Analysts v. IRS, No. 94-CV-923 (GK) (D.D.C.).
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Pre-filing agreements
On February 11, 2000, the IRS issued Notice 2000-12, in
which the IRS established a pilot program for ``Pre-filing
Agreements.'' Under this program, large businesses may request
a review and resolution of specific issues relating to tax
returns they expect to file between September and December of
2000. The purpose of the program is to enable taxpayers and the
IRS to resolve issues that are likely to be disputed in post-
filing audits. Examples of such issues include: (1) asset
valuation and the allocation of a business's purchase or sale
price among the assets acquired or sold; (2) the identification
and documentation of hedging transactions; and (3) the
determination of ``market'' for taxpayers using the lower of
cost or market method of inventory valuation in situations
involving inactive markets. The program is intended to address
issues for which the law is settled.
In Notice 2000-12, the IRS stated that pre-filing
agreements are closing agreements entered into pursuant to
section 7121. As such, the notice provides that the information
generated or received by the IRS during the pre-filing
agreement process constitutes return information. The notice
further provides that pre-filing agreements are not written
determinations as defined in section 6110, nor are they subject
to disclosure under the FOIA.
Several pre-filing agreements have been completed. A FOTA
request for these agreements has not been made.
House Bill
No provision. However, H.R. 5542 affirms that closing and
similar agreements, and information exchanged and agreements
reached pursuant to a tax treaty, are confidential. Further,
the provision clarifies that such protected documents are not
to be disclosed under the FOIA or section 6110.
Clarification that return information includes closing agreements and
similar dispute resolution agreements
Protection for closing agreements, pre-filing agreements
and similar agreements not containing an exposition
of the tax law
The bill provides that agreements entered into under
section 7121 or similar agreements are confidential return
information. Similar agreements are intended to include
negotiated agreements that (1) are the result of an alternative
dispute resolution or dispute avoidance process relating to
liability of any person under the Code for any tax, penalty,
interest, fine or forfeiture or other imposition or offense and
(2) do not establish, set forth, or resolve the government's
interpretation of the relevant tax law. This is not meant to
preclude citation, or repetition of, the Code, Treasury
regulations, or other published rules.
It is intended that pre-filing agreements be covered by
this provision. It is the understanding of the conferees that
pre-filing agreements do not explain the applicable provisions
of law or otherwise contain any exposition of the tax law or
the position of the IRS. In addition, it is not intended that
the closing and similar agreement exception be used as a means
of avoiding public disclosure of determinations that, under
present law, would be issued in a form that would be open to
public inspection. Thus, technical advice memoranda, chief
counsel advice or other material clearly available to the
public under present law section 6110, would not be exempt from
disclosure by virtue of the fact that such material is
contained in a background file for a closing agreement. For
example, if a revenue agent seeks technical advice in
connection with a pre-filing agreement, such technical advice
would remain subject to the requirements of section 6110. Since
the pre-filing agreement program involves only settled issues
of law, it is the understanding of the conferees that documents
of this nature generally would not be generated in the pre-
filing agreement process.
The provision is not intended to foreclose the disclosure
of tax-exempt organization closing agreements to the extent
such disclosure is authorized under section 6104.\48\ Since
section 6103 permits the disclosure of return information as
authorized by Title 26, a disclosure authorized by section 6104
is permissible, notwithstanding the fact that a closing
agreement is return information.
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\48\ The D.C. Circuit recently remanded to the district court for
factual development the issue of whether the closing agreement in that
case was submitted in support of an exemption application, and
therefore, subject to disclosure under section 6104. Tax Analysts v.
IRS, 214 F.3d 179 (D.C. Cir 2000), vacating and remanding 99-2 U.S.T.C.
(CCH) 794 (D.D.C. 1999).
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Report on pre-filing agreement program
It is intended that the Secretary make publicly available
an annual report relating to the pre-filing agreement program
operations for the preceding calendar year. The annual
reporting requirement is for five years, or the duration of the
program, whichever is shorter. The report is to include (1) the
number of pre-filing agreements completed, (2) the number of
applications received, (3) the number of applications
withdrawn, (4) the types of issues which are resolved by
completed agreements, (5) whether the program is being utilized
by taxpayers who were previously subject to audit by the IRS,
(6) the average length of time required to complete an
agreement, (7) the number, if any, and subject of technical
advice and chief counsel advice memoranda issued to address
issues arising in connection with any pre-filing agreement, (8)
any model agreements,\49\ and (9) any other information the
Secretary deems appropriate. The first report, covering the
calendar year 2000, is to be issued no later than March 30,
2001. The information required for the annual report is subject
to the restrictions of section 6103. Therefore, the Secretary
will disclose information only in a form that cannot be
associated with or otherwise identify, directly or indirectly,
a particular taxpayer. The Joint Committee on Taxation
periodically may review pre-filing agreements to determine
whether they contain legal interpretations that should be
disclosed to the public.
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\49\ See e.g., Appendix A of Rev. Proc. 2000-38 which is a model
``Closing Agreement on Final Determination Covering Specific Matters''
regarding method of accounting for distributor commissions. Rev. Proc.
2000-38, 2000-40 I.R.B. 314-315 (October 2, 2000). That model agreement
does not identify any particular taxpayer but sets forth the substance
of the agreement.
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Clarification that information protected by treaty is confidential
Protection for agreements and information exchanged
pursuant to tax treaty
The provision adds a new Code section 6105, which
provides that tax convention information, with limited
exceptions, cannot be disclosed. Thus, the provision confirms
that agreements concluded under, and information received
pursuant to, a tax convention are confidential and can only be
disclosed as provided in such tax convention.
Under the provision, a tax convention is defined to
include any income tax or gift and estate tax convention, or
any other convention or bilateral agreement (including
multilateral conventions and agreements and any agreement with
a possession of the United States) providing for the avoidance
of double taxation, the prevention of fiscal evasion,
nondiscrimination with respect to taxes, the exchange of tax
relevant information with the United States, or mutual
assistance in tax matters.
It is the understanding of the conferees that competent
authority agreements (also referred to as mutual agreements)
generally do not contain an explanation of the law or
application of law to facts. Instead, such agreements are
negotiated arrangements to resolve issues of double taxation.
Thus, the term tax convention information for purposes of the
provision includes: (1) any agreement entered into with the
competent authority of one or more foreign governments pursuant
to a tax convention; (2) an application for relief under a tax
convention (sought by either a taxpayer or another competent
authority); (3) any background information related to such
agreement or application; (4) documents implementing such
agreement; and (5) any other information exchanged pursuant to
a tax convention that is treated as confidential or secret
under such tax convention. The conferees intend that tax
convention information would include documents and any other
information that reflects tax convention information, including
the association of a particular treaty partner with a specific
issue or matter.
The general rule that tax convention information cannot
be disclosed does not apply to the disclosure of tax convention
information to persons or authorities (including courts and
administrative bodies) that are entitled to disclosure under
the tax convention. It also does not apply to any generally
applicable procedural rules regarding applications for relief
under a tax convention. This exception is intended to ensure
that there is no restriction on the release by the Secretary of
publicly available procedural rules concerning matters such as
how or when to make a request for competent authority
assistance. Thus, certain material generated by IRS, i.e., its
Competent Authority procedures (primarily reflected in Rev.
Proc. 96-13), or similar material produced by a treaty partner
(for example, an Information Circular produced and published by
the Canadian tax authority) may be made available to the
public. The general rule does not apply to the disclosure of
information not relating to a particular taxpayer if, after
consultation with the parties to a tax convention, the
Secretary determines that such disclosure would not impair tax
administration. This is consistent with current practice. An
example of a general agreement that could be disclosed under
this provision is the agreement between the competent
authorities of Mexico and the United States regarding the
maquiladora industry. That agreement, which was not taxpayer
specific, was publicized by press release IR-INT-1999-13. The
conferees intend that the ``impairment of tax administration''
for purposes of this provision include, but not be limited to,
the release of documents that would adversely affect the
working relationship of the treaty partners. Under the
provision, except as otherwise provided, taxpayer-specific tax
convention information could not be publicly disclosed, even if
it would not impair tax administration.
A taxpayer-specific competent authority agreement that
relates to the existence or possible existence of liability (or
amount thereof) of any person for any tax, penalty, interest,
fine, forfeiture, or other imposition or offense under the Code
is return information under section 6103. It is also an
agreement pursuant to a tax convention under section 6105.
Return information, including taxpayer-specific competent
authority agreements, remains subject to the confidentiality
provisions of section 6103. Thus, civil and criminal penalties
for the unauthorized disclosure of returns and return
information continue to apply to return information that is
also covered by section 6105. However, tax convention
information that is return information may only be disclosed to
the extent provided in, and subject to the terms and conditions
of, the relevant tax convention.
Interaction with FOIA and section 6110
Under the provision, closing agreements and similar
agreements would not be considered written determinations for
purposes of section 6110 and, thus, would not be subject to
public disclosure. Such agreements would be defined as return
information under section 6103 and, therefore, such documents
would be protected from disclosure pursuant to Exemption 3 of
the FOIA in conjunction with section 6103.
In addition, under the provision, section 6110 would not
apply to material covered by section 6105. In the litigation
over FSAs, there has been some dispute as to whether treaties
qualify as statutes for purposes of withholding information
pursuant to Exemption 3 of the FOIA. The conferees believe that
treaties are the equivalent of statutes for purposes of
Exemption 3 of the FOIA. Section 6105 satisfies Exemption 3 of
the FOIA. Taxpayer-specific tax convention information
concerning a taxpayer's tax liability, such as taxpayer-
specific competent authority agreements, would be exempt from
the FOIA as both return information under section 6103 and
information protected from disclosure by tax convention under
section 6105. Agreements not relating to a particular taxpayer,
and other tax convention information related to such
agreements, could be disclosed under FOIA if it is determined
that the disclosure would not impair tax administration.
Effective date
The provision applies to disclosures on, or after, the
date of enactment, and thus, applies to all documents in
existence on, or created after, the date of enactment.
senate amendment
No provision.
conference agreement
The conference agreement follows H.R. 5542.
E. Increase Joint Committee on Taxation Refund Review Threshold to $2
Million (sec. 305 of the bill and sec. 6405 of the Code)
Present Law
No refund or credit in excess of $1,000,000 of any income
tax, estate or gift tax, or certain other specified taxes, may
be made until 30 days after the date a report on the refund is
provided to the Joint Committee on Taxation (sec. 6405). A
report is also required in the case of certain tentative
refunds. Additionally, the staff of the Joint Committee on
Taxation conducts post-audit reviews of large deficiency cases
and other select issues.
House Bill
No provision. However, H.R. 5542 increases the threshold
above which refunds must be submitted to the Joint Committee on
Taxation for review from $1,000,000 to $2,000,000. The staff of
the Joint Committee on Taxation would continue to exercise its
existing statutory authority to conduct a program of expanded
post-audit reviews of large deficiency cases and other select
issues, and the IRS is expected to cooperate fully in this
expanded program.
Effective date.--The provision is effective on the date
of enactment, except that the higher threshold does not apply
to a refund or credit with respect to which a report was made
before the date of enactment.
Senate Amendment
No provision.
Conference Agreement
The conference agreement follows H.R. 5542.
F. Clarifying the Allowance of Certain Tax Benefits With Respect to
Kidnapped Children (sec. 306 of the bill and secs. 2, 24, 32, and 151
of the Code)
Present Law
The Code generally requires that a taxpayer provide over
one-half of the support for each individual claimed as that
taxpayer's dependent. Similarly, the child credit, the
surviving spouse filing status, and the head of household
filing status require that a taxpayer satisfy certain
requirements with regard to individuals that qualify as the
taxpayer's dependent(s). Finally, the earned income credit for
taxpayers with qualifying children generally is available only
if the taxpayer has the same principal place of abode for more
than one-half the taxable year with an otherwise qualifying
child.
Recently published IRS guidance first denied a dependency
exemption to certain taxpayers with kidnapped children (TAM
200034029), then allowed such tax benefits to such taxpayers
(TAM 200038059).
House Bill
No provision. However, H.R. 5542 clarifies that the
dependency exemption, the child credit, the surviving spouse
filing status, the head of household filing status, and the
earned income credit are available to an otherwise qualifying
taxpayer with respect to a child who is presumed by law
enforcement authorities to have been kidnapped by someone who
is not a member of the family of such child or the taxpayer.
Generally, this treatment continues for all taxable years
ending during the period that the child is kidnapped. However,
this treatment ends for the taxable year ending after the
calendar year in which it is determined that the child is dead
(or, if earlier, in which the child would have attained age
18).
Effective date.--The provision is effective for taxable
years ending after the date of enactment.
Senate Amendment
No provision.
Conference Agreement
The conference agreement follows H.R. 5542.
G. Conforming Changes To Accommodate Reduced Issuances of Certain
Treasury Securities (sec. 307 of the bill and sec. 995(f)(4) of the
Code)
Present Law
Code section 995(f)(4) dealing with the interest charge
on the deferred tax liability of the shareholders of a domestic
international sales corporation provides that the interest rate
be determined by reference to the average investment yield on
United States Treasury bills with maturities of 52 weeks. In
addition, provisions of Federal law relating to interest on
monetary judgments in civil cases recovered in Federal district
court and on a judgment against the United States affirmed by
the Supreme Court (Title 28), interest on certain unpaid
criminal fines and penalties (Title 18), and interest on
compensation for certain takings of property (Title 40)
determine the applicable interest rate by reference to 52-week
Treasury bills.
As a result of prior Congressional efforts at budgetary
control, current and projected Federal budget surpluses are
reducing the need of the Treasury Department to issue certain
securities. The Treasury Department has informed the Congress
that on grounds of efficient debt management, and
predictability and liquidity for the financial markets, the
Treasury Department has announced it is likely to cease issuing
52-week Treasury bills.
House Bill
No provision. However, H.R. 5542 modifies the Code (sec.
995(f)(4)) and certain other parts of Federal law relating to
interest on monetary judgments in civil cases recovered in
Federal district court and on a judgment against the United
States affirmed by the Supreme Court (Title 28), interest on
certain unpaid criminal fines and penalties (Title 18), and
interest on compensation for certain takings of property (Title
40) that make specific reference to yields on 52-week Treasury
bills. H.R. 5542 generally replaces the reference to 52-week
Treasury bills with a reference to the weekly average one-year
constant maturity Treasury yield, as published by the Board of
Governors of the Federal Reserve System.
Effective date.--The provision is effective upon the date
of enactment.
Senate Amendment
No provision.
Conference Agreement
The conference agreement follows H.R. 5542.
H. Authorization of Agencies to Use Corrected Consumer Price Index
(sec. 308 of the bill)
present law
Code section 1(f) provides for adjustments in the tax
tables so that inflation will not result in tax increases.
Numerous other provisions of the Code are indexed as well.
Section 1(f) provides that inflation is measured by changes in
the consumer price index (``CPI'') for the preceding year as
published by the Department of Labor compared to the CPI for
the calendar year 1992. Section 1(f) directs the Secretary to
publish tables with applicable tax rates based upon calculated
inflation adjustments by December 15 of the year before the
year to which the tables are to apply.
In addition, payments made under Social Security, certain
Federal employee retirement programs, and certain payments to
individuals under various welfare and income support programs
are adjusted annually by changes in the CPI.
On September 28, 2000, the Bureau of Labor Statistics
(``BLS'') announced that the agency had discovered a
computational error in quality adjustments of air conditioning
as a part of the cost of housing resulting in errors in the
reported CPI between January 1999 and August 2000. The BLS
reported that the CPI levels starting in January 1999 have been
either 0.0, 0.1, or 0.2 index points lower than the levels that
would have been published without the error. Consistent with
agency guidelines and past practice, the BLS announced that it
is revising the reported CPI back to January 2000 to the fully
correct levels. The BLS will make no change to reported levels
for January through December 1999. However, the BLS will make
the corrected levels of the CPI for 1999 available upon
request.
house bill
No provision. However, H.R. 5542 authorizes the Secretary
of the Treasury to use the corrected levels of the CPI for 1999
and 2000 for all purposes of the Code to which they might
apply. H.R. 5542 directs the Secretary to prescribe new tables
reflecting the correct levels of the 1999 CPI for the 2000 tax
year.
In addition, H.R. 5542 provides that the Director of the
Office of Management and Budget (``OMB'') shall assess Federal
benefit programs to ascertain the extent to which the CPI error
has or will result in a shortfall in program payments to
individuals for 2000 and future years. The Director is directed
to issue guidelines to agency administrators to determine the
extent, if any, of such shortfalls in payments to individuals.
The agency administrators are to report their findings to the
Director and to Congress within 30 days. H.R. 5542 provides
that, within 60 days of the date of enactment, the Director
instruct the head of any Federal agency which administers an
affected program to make a payment or payments to compensate
for the shortfall and that such payments are targeted to the
amount of the shortfall experienced by individual
beneficiaries. Applicable Federal benefit programs include the
old-age and survivors insurance program, the disability
insurance program and the supplemental security income program
under the Social Security Act and other programs as determined
by the Director. H.R. 5542 directs the Director to report to
the Congress on the activities performed pursuant to this
provision by April 1, 2001.
Effective date.--The provision is effective on the date
of enactment.
senate bill
No provision.
conference agreement
The conference agreement follows H.R. 5542, except that
the conference agreement directs the Secretary to prescribe new
tables reflecting the correct levels of the CPI for the 2001
tax year.
The conferees note that error in the CPI was
computational in nature. The conferees support the BLS's policy
to incorporate methodological changes only on a prospective
basis. The conferees also understand that BLS policy provides
that published indices generally not be revised except for
those found to be in error for the year in which the error was
discovered or within the past twelve months. The conferees
recognize that the errors in the CPI date to as long as 20
months prior to the announcement of the error. The conferees
recognize that the BLS's policy of not publishing corrected
index numbers, beyond those provided as described above, has
been applied in those rare cases where an error has been
discovered in the past. However, the conferees understand that
in the past 25 years the few errors that have been discovered
have involved sub-indices and have not affected the level of
the CPI itself. The last time the U.S. City Average All Items
CPI was revised was in December 1974, when the values for the
months of April through October 1974 were recalculated and
released with issuance of the November CPI. Therefore, past
precedent does not strictly apply to the present situation.
The conferees believe that integrity of official
government data is vital to policymakers and private
individuals and businesses throughout the country. The
conferees emphasize that the CPI plays an important role in
economic planning. For this reason the conferees are concerned
that, while the BLS has published corrected CPI numbers for
2000, the BLS does not intend to publish correct CPI numbers
for 1999 as part of the official CPI series. To its credit, the
BLS announced the error publicly. The national press reported
the error.\50\ In the absence of a correction to the official
CPI series, the Federal government will be left in the position
of maintaining, as an official data series, index numbers that
the Federal government has admitted are incorrect. The
conferees believe that the public's trust in the integrity of
official government data is a paramount goal and the conferees
strongly encourage the Commissioner of the Bureau of Labor
Statistics to review carefully the agency's current policy with
respect to publishing as part of an official series corrections
to data found to be in error for reasons of computational
error. The conferees believe such a review should be made both
with respect to the error announced on September 28, 2000, and
as a matter for the future for those rare circumstances when
such a similar computational error might once again arise.
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\50\ For example, John M. Berry, ``Inflation Higher Than
Reported,'' The Washington Post, September 27, 2000, p. E-1, John M.
Berry, ``Rent Error Leads to Revision Of the CPI,'' The Washington
Post, September 29, 2000, p. E-3, Nicholas Kulish, ``Major Price Index
Is Revised Upward As Result of Error,'' The Wall Street Journal,
September 28, 2000, p. A2, and Nicholas Kulish, ``Second-Period GDP
Rose at 5.6% Annual Rate,'' The Wall Street Journal, September 29,
2000, p. A2. The conferees observe that these press reports highlight
the potential confusion for the public regarding these data. The
Washington Post reported that ``the CPI figures for 1999 were not
revised'' (September 29, 2000 story) while The Wall Street Journal
reported that ``[t]he BLS said a complete revision of all the data sets
would be released'' (September 28, 2000 story) and ``it [BLS] announced
that it would revise the index'' (September 29, 2000 story).
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I. Prevent Duplication or Acceleration of Loss Through Assumption of
Certain Liabilities (sec. 309 of the bill and sec. 358 of the Code)
present law
Generally, no gain or loss is recognized when one or more
persons transfer property to a corporation in exchange for
stock and immediately after the exchange such person or persons
control the corporation. However, a transferor recognizes gain
to the extent it receives money or other property (``boot'') as
part of the exchange (sec. 351).
The assumption of liabilities by the controlled
corporation generally is not treated as boot received by the
transferor,\51\ except that the transferor recognizes gain to
the extent that the liabilities assumed exceed the total of the
adjusted basis of the property transferred to the controlled
corporation pursuant to the exchange (sec. 357(c)).
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\51\ The assumption of liabilities is treated as boot if it can
be shown that ``the principal purpose'' of the assumption is tax
avoidance on the exchange, or is a non-bona fide business purpose (sec.
357(b)).
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The assumption of liabilities by the controlled
corporation generally reduces the transferor's basis in the
stock of the controlled corporation that assumed the
liabilities. The transferor's basis in the stock of the
controlled corporation is the same as the basis of the property
contributed to the controlled corporation, increased by the
amount of any gain (or dividend) recognized by the transferor
on the exchange, and reduced by the amount of any money or
property received, and by the amount of any loss recognized by
the transferor (sec. 358). For this purpose, the assumption of
a liability is treated as money received by the transferor.
An exception to the general treatment of assumption of
liabilities applies to assumptions of liabilities that would
give rise to a deduction, provided the incurrence of such
liabilities did not result in the creation or increase of basis
of any property. The assumption of such liabilities is not
treated as money received by the transferor in determining
whether the transferor has gain on the exchange. Similarly, the
transferor's basis in the stock of the controlled corporation
is not reduced by the assumption of such liabilities. The
Internal Revenue Service has ruled that the assumption by an
accrual basis corporation of certain contingent liabilities for
soil and groundwater remediation would be covered by this
exception.\52\
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\52\ Rev. Rul. 95-74, 1995-2 C.B. 36. The ruling addressed a
parent corporation's transfer to a subsidiary of substantially all the
assets of a manufacturing business, in exchange for stock and the
assumption of liabilities associated with the business, including
certain contingent environmental remediation liabilities. These
liabilities arose due to contamination of land during the parent
corporation's operation of the manufacturing business. The transferor
had no plan or intention to dispose of (or to have the subsidiary
issue) any subsidiary stock. The IRS ruled that the contingent
liabilities would not reduce the transferor's basis in the stock of the
subsidiary because the liabilities had not been taken into account by
the transferor prior to the transferor and had not given rise to
deductions or basis for the transferor.
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House Bill
No provision. However, H.R. 5542 contains a provisions to
limit the acceleration or duplication of losses through
assumptions of liabilities.
Under H.R. 5542, if the basis of stock (determined
without regard to this provision) received by a transferor as
part of a tax-free exchange with a controlled corporation
exceeds the fair market value of the stock, then the basis of
the stock received is reduced (but not below the fair market
value) by the amount (determined as of the date of the
exchange) of any liability that (1) is assumed in exchange for
such stock, and (2) did not otherwise reduce the transferor's
basis of the stock by reason on the assumption. Except as
provided by the Secretary of the Treasury, this provision does
not apply where the trade or business with which the liability
is associated is transferred to the corporation as part of the
exchange, or where substantially all the assets which the
liability is associated are transferred to the corporation as
part of the exchange.
The exception for transfers of a trade or business, or of
substantially all the assets, with which a liability is
associated, are intended to obviate the need for valuation or
basis reduction in such cases. The exceptions are not intended
to apply to situation involving the selective transfer of
assets that may bear some relationship to the liability, but
that do not represent the full scope of the trade or business,
(or substantially all the assets) with which the liability is
associated.
For purposes of the provision, the term ``liability''
includes fixed or contingent obligation to make payment,
without regard to whether such obligation or potential
obligation is otherwise taken into account under the Code. The
determination whether a liability (as more broadly defined for
purposes of this provision) has been assumed is made in
accordance with the provisions of section 357(d)(1) of the
Code. Under the standard of 357(d)(1), a recourse liability is
treated as assumed if, based on all the facts and
circumstances, the transferee has agreed to and is expected to
satisfy such liability (or portion thereof), whether or not the
transferor has been relieved of the liability. For example, if
a transferee corporation does not formally assume a recourse
obligation or potential obligation of the transferor, but
instead agrees and is expected to indemnify the transferor with
respect to all or a portion of such an obligation, then the
amount that is agreed to be indemnified is treated as assumed
for purposes of the provision, whether or not the transferor
has been relieved of such liability. Similarly, a nonrecourse
liability is treated as assumed by the transferee of any asset
subject to such liability.\53\
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\53\ Section 357(d)(2) contains a limitation in the case of
certain nonrecourse liabilities. Also, under section 357, regulations,
if issued, may provide for different results.
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The application of the provision is illustrated in the
following example: Assume a taxpayer transfers assets with an
adjusted basis and fair market value of $100 to its wholly-
owned corporation and the corporation assumes $40 of
liabilities (the payment of which would give rise to a
deduction). Thus, the value of the stock received by the
transferor is $60. Under present law, the basis of the stock
would be $100. The provision requires that the basis of the
stock be reduced to $60 (i.e., a reduction of $40). Except as
provided by the Secretary, no basis reduction is required if
the transferred assets consisted of the trade or business, or
substantially all the assets, with which the liability is
associated.
The provision does not change the tax treatment with
respect to the transferee corporation.
The Secretary of the Treasury is directed to prescribe
rules providing appropriate adjustments to prevent the
acceleration or duplication of losses through the assumption of
liabilities (as defined in the provision) in transactions
involving partnerships. The Secretary may also provide
appropriate adjustments in the case of transactions involving S
corporations. In the case of S corporations, such rules may be
applied instead of the otherwise applicable basis reduction
rules.
Effective Date.--The provision is effective for
assumptions of liabilities on or after October 19, 1999. Except
as provided by the Secretary, the rule addressing transactions
involving partnerships are effective with the same effective
date. Any rules addressing transactions involving S
corporations may likewise be effective for assumptions of
liabilities on or after October 19, 1999, or such later date as
may be prescribed in such rules.
senate amendment
No provision. On April 4, 2000, Senators Roth and
Moynihan introduced a bill (S. 2354) that is the same as the
provision in H.R. 5542.
conference agreement
The conference agreement follows H.R. 5542.
J. Disclosure of Return Information to the Congressional Budget Office
(sec. 310 of the bill and new sec. 6103(j)(6) of the Code)
present law
Federal tax returns and return information are
confidential and cannot be disclosed unless authorized by the
Code. Section 6103 authorizes certain agencies to receive tax
returns and return information for statistical use and for
other specified purposes.\54\ Section 6103 also permits the
Secretary of the Treasury (``the Secretary'') to provide return
information to any person authorized to receive it by any mode
or means that the Secretary determines necessary or
appropriate.\55\ Persons making unauthorized disclosures or
inspections of tax returns and return information are subject
to criminal and civil penalties.\56\
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\54\ E.g., sec. 6103(j), and 6103(l)(1) and (5).
\55\ Sec. 6103(p)(2)(B).
\56\ Sec. secs. 7431, 7213, and 7213A.
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House Bill
No provision.
Senate Amendment
No provision.
Conference Agreement
Disclosure of return information
The Congressional Budget Office (``CBO'') is in the
process of developing the capability to make projections of the
Social Security and Medicare programs over long periods of
time. To facilitate the development and operation of long-term
models of Social Security and Medicare, CBO needs continuing
access to records from the IRS. Specifically, CBO seeks two SSA
files that contain return information--the Social Security
Earnings Record and the Master Beneficiary Record. These files
contain individual earnings data compiled from tax returns
(Forms W-2), which are protected from disclosure by section
6103. In addition, CBO may request other records, including
those matched with survey data.
The conference agreement amends section 6103 to permit
the Secretary to furnish to CBO return information to the
extent such information is necessary for purposes of CBO's
long-term models of Social Security and Medicare. This
authority extends to the development, operation, and
maintenance by CBO of its long-term models of Social Security
and Medicare. It is the intent of Congress that all requests
for information made by CBO under this provision be made to the
Secretary and that the Secretary use his authority under
section 6103(p)(2) such that the SSA or other agency can
furnish directly to CBO, for purposes of CBO's long-term models
of Social Security and Medicare, the files they possess that
incorporate return information. It is also the intent of
Congress that the Secretary furnish such other return
information under this provision as is necessary for purposes
of CBO's Social Security and Medicare long-term models.
Under the provision, CBO is subject to the present-law
safeguard requirements for tax returns and return
information.\57\ Further, CBO is prohibited from disclosing any
tax returns and return information received under this
provision except in a form that cannot be associated with, or
otherwise identify, directly or indirectly a particular
taxpayer. Present-law civil and criminal penalties apply to the
unauthorized disclosure or inspection of tax returns or return
information.\58\
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\57\ Sec. 6103(p)(4).
\58\ See secs. 7431, 7213, and 7213A.
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Addition of general CBO confidentiality provisions
The conference agreement adds to the Congressional Budget
Act of 1974 \59\ additional confidentiality provisions which
would require CBO to provide the same level of confidentiality
to data it obtains from other agencies as that to which the
agencies themselves are subject. Officials and employees of CBO
would be subject to the same statutory penalties for
unauthorized disclosure as the employees of the agencies from
which CBO obtain the data.
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\59\ 2 U.S.C. sec. 601(d).
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Subtitle B.--Tax Technical Corrections (secs. 311-319 of the bill)
house bill
No provision. However, H.R. 5542 includes tax technical
corrections.\60\ Except as otherwise provided, the technical
corrections contained in the bill generally are effective as if
included in the originally enacted related legislation. The
provisions under the IRS Restructuring Act of 1998 relating to
innocent spouse and to procedural and administrative issues
(other than the provision relating to clarification of Tax
Court authority to issue appealable decisions) are effective
upon the date of enactment of the bill.
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\60\ In addition to other tax technical corrections, the bill
contains the technical corrections contained in H.R. 2488, the
Financial Freedom Act of 1999 (106th Cong. 1st Sess., reported by the
House Committee on Ways and Means, H. Rept. 106-238, July 16, 1999,
393-397), as passed by the House, and S. 1429, the Taxpayer Refund Act
of 1999 (reported by the Senate Committee on Finance, S. Rept. 106-120,
July 23, 1999, 221-225), as passed by the Senate. (The technical
corrections were not included in the conference agreement to H.R. 2488,
the Taxpayer Refund and Relief Act of 1999 (106th Cong., 1st Sess., H.
Rept. 106-289, Aug. 4, 1999, 542-543). The Taxpayer Refund and Relief
Act of 1999 was vetoed by President Clinton.) However, the bill does
not include the following provisions enacted in other legislation:
sections 1601(b)(2) and (c) of H.R. 2488 (and section 504(c) of S.
1429), relating to the Vaccine Trust Fund, which were enacted in the
``Ticket to Work and Work Incentives Improvement Act of 1999'' (P.L.
106-170, sec. 523(b)).
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Amendments relating to the Ticket to Work and Work Incentives
Improvement Act of 1999
Research credit.--The provision clarifies the anti-double
dip rule coordinating the research credit (sec. 41) and the
Puerto Rico economic activity credit (sec. 30A). It is arguable
that the present-law provisions could be construed so that the
amount of wages on which a taxpayer could claim the section 30A
credit is reduced only by the amount of credit claimed under
section 41, rather than by the amount of wages upon which the
section 41 credit is based. This result is inconsistent with
the legislative history of the original provisions. The
provision deletes the words ``or credit'' after ``deduction''
in section 280C(c)(1), and adds a new subsection in section 30A
specifying that wages or other expenses taken into account for
section 30A may not be taken into account for section 41.
Taxable REIT subsidiaries.--The provision clarifies that
a REIT's redetermined rents (described in sec. 857(b)(7)(B))
that are subject to tax under section 857(b)(7)(A) do not
include amounts received from a taxable REIT subsidiary that
would be excluded from unrelated business taxable income (under
sec. 512(b)(3), relating to certain rents, if received by
certain types of organizations described in sec. 511(a)(2)).
Partnership basis adjustments.--The provision provides
that the rule in the consolidated return regulations (Treas.
Reg. sec. 1.1502-34) aggregating stock ownership for purposes
of section 332 (relating to complete liquidation of a
subsidiary that is a controlled corporation) also applies for
purposes of section 732(f) (relating to basis adjustments to
assets of a controlled corporation received in a partnership
distribution).
Amendments related to the Tax and Trade Relief Extension Act of 1998
Exempt organizations.--The provision clarifies that
nonexempt charitable trusts and nonexempt private foundations
are subject to the public disclosure requirements of section
6104(d).
Capital gains.--The provision clarifies that if (1) a
charitable remainder trust sold section 1250 property after
July 28, 1997, and before January 1, 1998, (2) the property was
held more than one year but not more than 18 months, and (3)
the capital gain is distributed after December 31, 1997, then
any capital gain attributable to depreciation will be taxed at
25 percent (rather than 28 percent). Treasury has published a
notice (Notice 99-17, 1999-14 I.R.B., April 5, 1999) providing
that the gain is taxed at 25 percent.
Amendments related to the Internal Revenue Service Restructuring and
Reform Act of 1998
Innocent spouse
Timing of request for relief.--Confusion currently exists
as to the appropriate point at which a request for innocent
spouse relief should be made by the taxpayer and considered by
the IRS. Some have read the statute to prohibit consideration
by the IRS of requests for relief until after an assessment has
been made, i.e., after the examination has been concluded, and
if challenged, judicially determined. Others have read the
statute to permit claims for relief from deficiencies to be
made upon the filing of the return before any preliminary
determination as to whether a deficiency exists or whether the
return will be examined. The consideration of innocent spouse
relief requires that the IRS focus on the particular items
causing a deficiency; until such items are identified, the IRS
cannot consider these claims. Congress did not intend that
taxpayers be prohibited from seeking innocent spouse relief
until after an assessment has been made; Congress intended the
proper time to raise and have the IRS consider a claim to be at
the same point where a deficiency is being considered and
asserted by the IRS. This is the least disruptive for both the
taxpayer and the IRS since it allows both to focus on the
innocent spouse issue while also focusing on the items that
might cause a deficiency. It also permits every issue,
including the innocent spouse issue, to be resolved in single
administrative and judicial process. The bill clarifies the
intended time by permitting the election under (b) and (c) to
be made at any point after a deficiency has been asserted by
the IRS. A deficiency is considered to have been asserted by
the IRS at the time the IRS states that additional taxes may be
owed. Most commonly, this occurs during the Examination
process. It does not require an assessment to have been made,
nor does it require the exhaustion of administrative remedies
in order for a taxpayer to be permitted to request innocent
spouse relief.
Allowance of refunds.--The current placement in the
statute of the provision for allowance of refunds may
inappropriately suggest that the provision applies only to the
United States Tax Court, whereas it was intended to apply
administratively and in all courts. The bill clarifies this by
moving the provision to its own subsection.
Non-exclusivity of judicial remedy.--Some have suggested
that the IRS Restructuring Act administrative and judicial
process for innocent spouse relief was intended to be the
exclusive avenue by which relief could be sought. The bill
clarifies Congressional intent that the procedures of section
6015(e) were intended to be additional, non-exclusive avenues
by which innocent spouse relief could be considered.
Time for filing a petition with the Tax Court.--As
enacted, the time period for seeking a redetermination in the
Tax Court of innocent spouse relief begins on the date of the
determination as opposed to the day after the determination.
This period is one day shorter than that generally applicable
to petition the Tax Court with respect to a deficiency notice
(sec. 6213) and the period during which collection activities
are prohibited and the limitations period is suspended. The
bill clarifies the computation of this period and conforms it
to the generally applicable 90-day period for petitioning the
Tax Court. Conforming amendments are made as to the period for
which collection activities are prohibited and collection
limitations suspended.
Waiver of final determination upon agreement as to
relief.--Congress intended in enacting section 6015 to provide
a simple and efficient procedure by which the IRS could
consider relief, and if relief was denied (in whole or in part)
and the spouse requesting such relief did not agree with such
denial, such issue could be considered by the Tax Court.
Congress did not intend to require a rigid formal process when
the IRS and the spouse requesting relief agreed on the extent
of relief to be granted. However, the provisions of section
6015(e) have been interpreted as requiring the issuance in all
circumstances of a formal ``Notice of Determination,'' which
contains a statement of the time period within which a petition
may be filed with the Tax Court and which delays final
resolution of the request for relief until the expiration of
the period for filing a petition with the Tax Court. The
issuance of the Notice of Determination is confusing to the
taxpayer when the requested relief was fully granted or when
the IRS and the taxpayer otherwise agreed on the application of
the innocent spouse provisions to the taxpayer's case. It also
may cause unnecessary filings with the Tax Court and delay the
closing of the case until the time for filing with the Tax
Court expires.
Congress has addressed the analogous situation in the
deficiency context in section 6213(d). In such situations, upon
written agreement, the IRS may adjust the taxpayer's liability
as agreed, and no additional formal notice is necessary. The
bill reflects that an analogous waiver was intended to apply in
the innocent spouse context. The bill consequently permits
taxpayers and the IRS to enter into a similar written agreement
in innocent spouse cases, which allows for the taxpayer's
liability to be immediately adjusted as agreed, and makes
unnecessary a formal Notice of Determination or Tax Court
review. This written agreement is to specify the details of the
agreement between the IRS and the taxpayer as to the nature and
extent of innocent spouse relief that will be provided.
Conforming amendments are made as to the period for which
collection activities are prohibited and collection limitations
suspended.
Procedural and administrative issues
Disputes involving $50,000 or less.--The provision
clarifies that the small case procedures of the Tax Court are
available with respect to innocent spouse disputes and disputes
continuing from the pre-levy administrative due process
hearing. The small case procedures provide an accessible forum
for taxpayers who have small claims with less formal rules of
evidence and procedure. Use of the procedure is optional to the
taxpayer, with the concurrence of the Tax Court. In view of the
recent enactment of the innocent spouse and pre-levy
administrative due process hearing provisions, it is
anticipated that the Tax Court will give careful consideration
to (1) a motion by the Commissioner of Internal Revenue to
remove the small case designation (as authorized by Rules 172
and 173 of the Tax Court Rules) when the orderly conduct of the
work of the Court or the administration of the tax laws would
be better served by a regular trial of the case, as well as (2)
the financial impact upon the taxpayer, including additional
legal fees and costs, of not utilizing small case treatment.
For example, removing the small case designation may be
appropriate when a decision in the case will provide a
precedent for the disposition of a substantial number of other
cases. It is anticipated that motions by the Commissioner to
remove the small case designation will be made infrequently.
Authority to enjoin collection actions.--While a dispute
is pending under the pre-levy administrative due process
hearing procedures, levy action is statutorily suspended for
that period. The Tax Court and district courts are expressly
granted authority to enjoin improper levy action in general,
but that authority does not explicitly extend to improper levy
action that occurs during the period when levy action is
statutorily suspended under the administrative due process
provisions. The provision clarifies the ability of the courts
(including the Tax Court) to enjoin levy during the period that
levy is required to be suspended with respect to a dispute
under the pre-levy administrative due process hearing
procedures.
Clarification of permissible extension of limitations
period for installment agreements.--Uncertainty exists as to
whether the permissible extension of the period of limitations
in the context of installment agreements is governed by
reference to an agreement of the parties pursuant to section
6502 or by reference to the period of time during which the
installment agreement is in effect pursuant to sections
6331(k)(3) and (i)(5). The provision clarifies that the
permissible extension of the period of limitations in the
context of installment agreements is governed by the pertinent
provisions of section 6502.
Clarification of Tax Court authority to issue appealable
decisions.--The statutory provision for judicial review of a
dispute concerning the pre-levy administrative due process
hearing may be unclear as to whether a determination of the Tax
Court is an appealable decision. The provision clarifies that
the determination of the Tax Court (other than under the small
case procedures) in a dispute concerning the pre-levy
administrative due process hearing is a decision of the Tax
Court and would be reviewable as such.
Other issues
IRS restructuring.--When the Office of the Chief
Inspector was replaced by the Treasury Inspector General for
Tax Administration (TIGTA) under the IRS Restructuring and
Reform Act of 1998, Inspection's responsibilities were assigned
to the TIGTA. TIGTA personnel are Treasury, rather than IRS,
personnel. TIGTA personnel still need to make investigative
disclosures to carry out the duties they took over from
Inspection and their additional tax administration
responsibilities. However, section 6103(k)(6) refers only to
``internal revenue'' personnel. The provision clarifies that
section 6103(k)(6) permits TIGTA personnel to make
investigative disclosures.
Compliance.--Section 3509 of the IRS Restructuring and
Reform Act of 1998 expanded the disclosure rules of section
6110 to also cover Chief Counsel advice (sec. 6110(i)). This is
a conforming change related to ongoing investigations. The
provision adds to section 6110(g)(5)(A), after the words
technical advice memorandum, ``or Chief Counsel advice.''
Amendments related to the Taxpayer Relief Act of 1997
Deficiency created by overstatement of refundable child
credit.--The provision treats the refundable portion of the
child credit under section 24(d) as part of a ``deficiency.''
Thus, the usual assessment procedures applicable to income
taxes will apply to both the nonrefundable and the refundable
portions of the child credit. (This will reverse the conclusion
reached by Internal Revenue Service Chief Counsel Memorandum
199948027 interpreting present law.)
Roth IRAs.--Code section 3405 provides for withholding
with respect to designated distributions from certain tax-
favored arrangements, including IRAs. In general, section
3405(e)(1)(B)(ii) excludes from the definition of a designated
distribution the portion of any distribution which it is
reasonable to believe is excludable from gross income. However,
all distributions from IRAs are treated as includible in
income. The exception was consistent with prior law when all
IRA distributions were taxable, but does not account for the
tax-free nature of certain Roth IRA distributions. The
provision extends the exception to Roth IRAs.
Capital gain election.--The provision provides that an
election to recognize gain or loss made pursuant to section
311(e) of the Taxpayer Relief Act of 1997 does not apply to
assets disposed of in a recognition transaction within one year
of the date the election would otherwise have been effective.
Thus, for example, if an asset is sold in 2001, no election may
be made with respect to that asset. In addition, it is
clarified that the deemed sale and repurchase by reason of the
election is not taken into account in applying the wash sales
rules of section 1091.
Straight-line depreciation under AMT.--The provision
clarifies that the Taxpayer Relief Act of 1997 did not change
the requirement that the straight-line method of depreciation
be used in computing the alternative minimum tax (``AMT'')
depreciation allowance for section 1250 property. It is
arguable that the changes made by that Act could be read as
inadvertently allowing accelerated depreciation under the AMT
for section 1250 property which is allowed accelerated
depreciation under the regular tax.
Transportation benefits.--Under present law, salary
reduction amounts are generally treated as compensation for
purposes of the limits on contributions and benefits under
qualified plans. In addition, an employer can elect whether or
not to include such amounts for nondiscrimination testing
purposes. The IRS Reform Act permitted employers to offer a
cash option in lieu of qualified transportation benefits. The
provision treats salary reduction amounts used for qualified
transportation benefits the same as other salary reduction
amounts for purposes of defining compensation under the
qualified plan rules.
Tax Court jurisdiction.--The Tax Court recently held that
its jurisdiction pursuant to section 7436 extends only to
employment status, not to the amount of employment tax in
dispute (Henry Randolph Consulting v. Comm'r, 112 T.C. #1, Jan.
6, 1999). The provision provides that the Tax Court also has
jurisdiction over the amount.
Amendments related to the Balanced Budget Act of 1997
Tobacco floor stocks tax.--The provision clarifies that
the floor stocks taxes imposed on January 1, 2000, and January
1, 2002, apply only to cigarettes rather than to all tobacco
products. As enacted, the law could be construed as ambiguous,
referring to imposition on all tobacco products but imposing
liability only with respect to cigarettes.
Tobacco excise tax.--Conforming amendments are provided
to two provisions to reflect the fact that the tax on cigarette
papers is not imposed on ``books'' or papers since January 1,
2000.
Coordination of trade rules and tobacco excise tax.--
Clarification is provided that the penalty on reimporting
cigarettes other than for return to a manufacturer (effective
January 1, 2000) does not apply to cigarettes re-imported by
individuals to the extent those cigarettes can be entered into
the U.S. without duty or tax under the Harmonized Tariff
Schedule.
Amendment related to the Small Business Job Protection Act of 1996
Work opportunity tax credit.--Section 51(d)(2) refers to
eligibility for the work opportunity tax credit with respect to
certain welfare recipients without taking into account the
enactment of the temporary assistance for needy families
(``TANF'') program. The provisions conform references in the
work opportunity tax credit to the operation of TANF.
Electing small business trusts holding S corporation
stock.--The provision allows an electing small business trust
(sec. 1361(e)) to have an organization described in section
170(c)(1) (relating to State and local governments) as a
beneficiary if the organization holds a contingent interest and
is not a potential current beneficiary.
Definition of lump-sum distribution.--Section 1401(b) of
the Small Business Job Protection Act of 1996 Act repealed 5-
year averaging for lump-sum distributions. The definition of
lump-sum distribution was preserved for other provisions,
primarily those relating to NUA in employer securities. The
definition was moved from section 402(d)(4)(A) to section
402(e)(4)(D)(i). This definition included the following
sentence: ``A distribution of an annuity contract from a trust
or annuity plan referred to in the first sentence of this
subparagraph shall be treated as a lump sum distribution.'' The
provision adds this language back into the definition of lump-
sum distribution. The sentence is relevant to section
401(k)(1)(B), which permits certain distributions if made as a
``lump-sum distribution.''
IRAs for nonworking spouses.--Section 1427 of the Small
Business Job Protection Act of 1996 expanded the IRA deduction
for nonworking spouses. The maximum permitted IRA contributions
is generally limited by the individual's earned income.
However, under present law, it is possible for a nonworking (or
lesser earning) spouse to make IRA contributions in excess of
the couple's combined earned income. The following example
illustrates present law.
Example: Suppose H and W retire in the middle of January,
1999. In that year, H earns $1,000 and W earns $500. Both are
active participants in an employer-sponsored retirement plan.
Their modified AGI is $60,000. They make no Roth IRA
contributions. Before application of the income phase-out
rules, the maximum deductible IRA contribution that H can make
is $1,000 (sec. 219(b)(1)). After application of the income
phase-out rule in section 219(g), H's maximum contribution is
$200, and H contributes that amount to an IRA. Under
408(o)(2)(B), H can make nondeductible contributions of $800
($1,000-$200).
W's maximum permitted deductible contribution under
section 219(c)(1)(B), before the income phase-out, is $1,300
(the sum of H and W's earned income ($1,500), less H's
deductible IRA contribution ($200)). Under the income phase-
out, W's deductible contribution is limited to $200, and she
can make a nondeductible contribution of $1,000 ($1,300-$200).
The total permitted contributions for H and W are $2,300
($1,000 for H plus $1,300 for W). The combined contribution
should be limited to $1,500, their combined earned income.
The provision provides that the contributions for the
spouse with the lesser income cannot exceed the combined earned
income of the spouses.
Amendment related to the Revenue Reconciliation Act of 1990
Qualified tertiary injectant expenses.--The provision
clarifies that the enhanced oil recovery credit (sec. 43)
applies with respect to qualified tertiary injectant expenses
described in section 193(b) that are paid or incurred in
connection with a qualified enhanced oil recovery project, and
that are deductible for the taxable year (regardless of the
provision allowing the deduction). Purchased and self-produced
injectants are treated the same for purposes of the section 43
credit.
Amendments to other Acts (sec. 318 of the bill)
Insurance.--The legislative history of section 7702A(a)
(enacted in the Technical and Miscellaneous Revenue Act of
1988) indicated that if a life insurance contract became a
modified endowment contract (``MEC''), then the MEC status
could not be eliminated by exchanging the MEC for another
contract. Section 7702A(a)(2), however, arguably might be read
to allow a policyholder to exchange a MEC for a contract that
does not fail the 7-pay test of section 7702A(b), then exchange
the second contract for a third contract, which would not
literally have been received in exchange for a contract that
failed to meet the 7-pay test. The provision clarifies section
7702A(a)(2) to correspond to the legislative history, effective
as if enacted with the Technical and Miscellaneous Revenue Act
of 1988 (generally, for contracts entered into on or after June
21, 1988).
Insurance.--Under section 7702A, if a life insurance
contract that is not a modified endowment contract is actually
or deemed exchanged for a new life insurance contract, then the
7-pay limit under the new contract is first be computed without
reference to the premium paid using the cash surrender value of
the old contract, and then would be reduced by \1/7\ of the
premium paid taking into account the cash surrender value of
the old contract. For example, if the old contract had a cash
surrender value of $14,000 and the 7-pay premium on the new
contract would equal $10,000 per year but for the fact that
there was an exchange, the 7-pay premium on the new contract
would equal $8,000 ($10,000-$14,000/7). However, section
7702A(c)(3)(A) arguably might be read to suggest that if the
cash surrender value on the new contract was $0 in the first
two years (due to surrender charges), then the 7-pay premium
might be $10,000 in this example, unintentionally permitting
policyholders to engage in a series of ``material changes'' to
circumvent the premium limitations in section 7702A. The
provision clarifies section 7702A(c)(3)(A) to refer to the cash
surrender value of the old contract, effective as if enacted
with the Technical and Miscellaneous Revenue Act of 1988
(generally, for contracts entered into on or after June 21,
1988).
Worthless securities.--Section 165(g)(3) provides a
special rule for worthless securities of an affiliated
corporation. The test for affiliation in section 165(g)(3)(A)
is the 80-percent vote test for affiliated groups under section
1504(a) that was in effect prior to 1984. When section 1504(a)
was amended in the Deficit Reduction Act of 1984 to adopt the
vote and value test of present law, no corresponding change was
made to section 165(g)(3)(A), even though the tests had been
identical until then. The provision conforms the affiliation
test of section 165(g)(3)(A) to the test in section 1504(a)(2),
effective for taxable years beginning after December 31, 1984.
Exception for certain annuities under OID rules.--The
Deficit Reduction Act of 1984 expanded the prior-law rules for
inclusion in income of original issue discount (``OID'') on
debt instruments. That Act provided an exception from the
definition of a debt instrument for certain annuity contracts,
including any annuity contract to which section 72 applies and
that is issued by an insurance company subject to tax under
subchapter L of the Code (and meets certain other requirements)
(sec. 1275(a)(1)(B)(ii)). The provision clarifies that an
annuity contract otherwise meeting the applicable requirements
also comes within the exception of section 1275(a)(1)(B)(ii) if
it is issued by an entity described in section 501(c) and
exempt from tax under section 501(a), that would be subject to
tax as an insurance company under subchapter L if it were not
exempt under section 501(a). For example, the provision
clarifies that an annuity contract otherwise meeting the
requirements that is issued by a fraternal beneficiary society
which is exempt from Federal income tax under section 501(a),
and which is described in section 501(c)(8), comes within the
exception under section 1275(a)(1)(B)(ii). It is understood
that charitable gift annuities (as defined in sec. 501(m))
depend (in whole or in substantial part) on the life expectancy
of one or more individuals, and thus come within the exception
under section 1275(a)(1)(B)(i). The provision is effective as
if included with section 41 of the Deficit Reduction Act of
1984 (i.e., for taxable years ending after July 18, 1984).
Losses from section 1256 contracts.--Section 6411 allows
tentative refunds for NOL carry-backs, business credit
carrybacks and, for corporations only, capital loss carrybacks.
Individuals normally cannot carry back a capital loss. However,
section 1212(c) does allow a carryback of section 1256 losses,
if elected by the taxpayer. The provision amends section
6411(a) by including a reference to section 1212(c), effective
as if included with section 504 of the Economic Recovery Tax
Act of 1981.
Highway Trust Fund.--The provision modifies
administrative procedures of the Highway Trust Fund to conform
to the 1993 repeal of the special tax rate applicable to
ethanol prior to 1994. The provision is effective for taxes
received after the date of enactment. This ensures that
retroactive adjustments, if any, are not made to the Highway
Trust Fund.
Conforming amendment for expenditures from Vaccine Injury
Compensation Trust Fund.--The provision makes a conforming
amendment to the expenditure purposes of the Vaccine Injury
Compensation Trust Fund to enable certain payments to be made
from the Trust Fund.
Clerical changes
The bill makes a number of clerical and typographical
amendments to the Code.
senate amendment
No provision.
Conference Agreement
The conference agreement follows H.R. 5542.
TITLE IV.--TAX TREATMENT OF SECURITIES FUTURES CONTRACTS
(sec. 401 of the bill and secs. 1234B and 1256 of the Code)
present law
In general
Generally, gain or loss from the sale of property,
including stock, is recognized at the time of sale or other
disposition of the property, unless there is a specific
statutory provision of nonrecognition (sec. 1001).
Gains and losses from the sale or exchange of capital
assets are subject to special rules. In the case of
individuals, net capital gain is generally subject to a maximum
tax rate of 20 percent (sec. 1(h)). Net capital gain is the
excess of net long-term capital gains over net short-term
capital losses. Also, capital losses are allowed only to the
extent of capital gains plus, in the case of individuals,
$3,000 (sec. 1211). Capital losses of individuals may be
carried forward indefinitely and capital losses of corporations
may be carried back three years and forward five years (sec.
1212).
Generally, in order for gains or losses on a sale or
exchange of a capital asset to be long-term capital gains or
losses, the asset must be held for more than one year (sec.
1222).\61\ A capital asset generally includes all property held
by the taxpayer except certain enumerated types of property
such as inventory (sec. 1221).
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\61\ The holding period for futures transactions in a commodity
is 6 months. The 6-month holding period does not apply to futures which
are subject to the mark-to-market rules of section 1256, discussed
below.
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Section 1256 contracts
Special rules apply to ``section 1256 contracts,'' which
include regulated futures contracts, certain foreign currency
contracts, nonequity options, and dealer equity options. Each
section 1256 contract is treated as if it were sold (and
repurchased) for its fair market value on the last business day
of the year (i.e., ``marked to market''). Any gain or loss with
respect to a section 1256 contract which is subject to the
mark-to-market rule is treated as if 40 percent of the gain or
loss were short-term capital gain or loss and 60 percent were
long-term capital gain or loss. This results in a maximum rate
of 27.84 percent on any gain for taxpayers other than
corporations. The mark-to-market rule (and the special 60/40
capital treatment) is inapplicable to hedging transactions.
A ``regulated futures contract'' is a contract (1) which
is traded on or subject to the rules of a national securities
exchange registered with the Securities Exchange Commission, a
domestic board of trade designated a contract market by the
Commodities Futures Trading Commission, or similar exchange,
board of trade, or market, and (2) with respect to which the
amount required to be deposited and which may be withdrawn
depends on a system of marking to market.
A ``dealer equity option'' means, with respect to an
options dealer, an equity option purchased in the normal course
of the activity of dealing in options and listed on the
qualified board or exchange on which the options dealer is
registered. An equity option is an option to buy or sell stock
or an option the value of which is determined by reference to
any stock, group or stocks, or stock index, other than an
option on certain broad-based groups of stock or stock
index.\62\ An options dealer is any person who is registered
with an appropriate national securities exchange as a market
maker or specialist in listed options, or who the Secretary of
the Treasury determines performs functions similar to market
makers and specialists.\63\
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\62\ Rev. Rul. 94-63, 1994-2 C.B. 188, provides that the
determination made by the Securities and Exchange Commission will
determine whether or not an option is ``broad based''.
\63\ A special rule provides that any gain or loss with respect
to dealer equity options which are allocable to limited partners or
limited entrepreneurs are treated as short-term capital gain or loss
and do not qualify for the 60 percent long-term, 40 percent short-term
capital gain or loss treatment of section 1256(a)(3).
---------------------------------------------------------------------------
Mark to market accounting for dealers in securities
Under present law, a dealer in securities must compute
its income from dealer in securities pursuant to mark-to-market
of accounting (sec. 475). Gains and losses are treated as
ordinary income and loss. Traders in securities, and dealers
and traders in commodities may elect to use this method of
accounting, including the ordinary income treatment. Section
1256 contracts are not treated as securities for purposes of
section 475.\64\
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\64\ As discussed above, dealers in equity options are subject to
mark-to-market accounting and the special capital gain rules of section
1256.
---------------------------------------------------------------------------
Short sales
In the case of a ``short sale'' (i.e., where the taxpayer
sells borrowed property and later closes the sale by repaying
the lender with substantially identical property), any gain or
loss on the closing transaction is considered gain or loss from
the sale or exchange of a capital asset if the property used to
close the short sale is a capital asset in the hands of the
taxpayer, but the gain is ordinarily treated as short-term gain
(sec. 1233(a)).
The Internal Revenue Code (the ``Code'') also contains
several rules intended to prevent the transformation of short-
term capital gain into long-term capital gain or long-term
capital loss into short-term loss by simultaneously holding
property and selling short substantially identical property
(sec. 1233(b) and (d)). Under these rules, if taxpayer holds
property for less than the long-term holding period and sells
short substantially identical property, any gain or loss upon
the closing of the short sale is considered short-term capital
gain, and the holding period of the substantially identical
property is generally considered to begin on the date of the
closing of the short sale. Also, if a taxpayer has held
property for more than the long-term holding period and sells
short substantially identical property, any loss on the closing
of the short sale is considered a long-term capital loss.
For purposes of these short sale rules, property includes
stock, securities, and commodity futures, but commodity futures
are not considered substantially identical if they call for
delivery in different months.
For purposes of the short-sale rules relating to short-
term gains, the acquisition of an option to sell at a fixed
price is treated as a short sale, and the exercise or failure
to exercise the option is considered a closing of the short
sale. \65\
---------------------------------------------------------------------------
\65\ An exception applies to an option to sell acquired on the
same day as the property identified as intended to be used (and is so
used) in exercising the option is acquired (sec. 1233(c)).
---------------------------------------------------------------------------
The Code also treats a taxpayer as recognizing gain where
the taxpayer holds appreciated property and enters into a short
sale of the same or substantially identical property, or enters
into a contract to sell that same or substantially identical
property (sec. 1259).
Wash sales
The wash-sale rule (sec. 1091) disallows certain losses
from the disposition of stock or securities if substantially
identical stock or securities (or an option or contract to
acquire such property) are acquired by the taxpayer during the
period beginning 30 days before the date of sale and ending 30
days after such date of sale. Commodity futures are not treated
as stock or securities for purposes of this rule. The basis of
the substantially identical stock or securities is adjusted to
include the disallowed loss.
Similar rules apply to disallow any loss realized on the
closing of a short sale of stock or securities where
substantially identical stock or securities are sold (or a
short sale, option or contract to sell is entered into) during
the applicable period before and after the closing of the short
sale.
Straddle rules
If a taxpayer realizes a loss with respect to a position
in a straddle, the taxpayer may recognize that loss for the
taxable year only to the extent that the loss exceeds the
unrecognized gain (if any) with respect to offsetting positions
in the straddle (sec. 1092). Disallowed losses are carried
forward to the succeeding taxable year and are subject to the
same limitation in that taxable year.
A ``straddle'' generally refers to offsetting positions
with respect to actively traded personal property. Positions
are offsetting if there is a substantial diminution of risk of
loss from holding one position by reason of holding one or more
other positions in personal property. A ``position'' in
personal property is an interest (including a futures or
forward contract or option) in personal property.
The straddle rules provide that the Secretary of the
Treasury may issue regulations applying the short sale holding
period rules to positions in a straddle. Temporary regulations
have been issued setting forth the holding period rules
applicable to positions in a straddle. \66\ To the extent these
rules apply to a position, the rules in section 1233(b) and (d)
do not apply.
---------------------------------------------------------------------------
\66\ Reg. sec. 1.1092(b)-2T.
---------------------------------------------------------------------------
The straddle rules generally do not apply to positions in
stock. However the straddle rules apply if one of the positions
is stock and at least one of the offsetting positions is either
(1) an option with respect to stock or (2) a position with
respect to substantially similar or related property (other
than stock) as defined in Treasury regulations. Under property
Treasury regulations, a position with respect to substantially
similar or related property does not include stock or a short
sale of stock, but includes any other position with respect to
substantially similar or related property. \67\
---------------------------------------------------------------------------
\67\ Prop. Reg. sec. 1.1092(d)-2(c).
---------------------------------------------------------------------------
If a straddle consists of both positions that are section
1256 contracts and positions that are not such contracts, the
taxpayer may designate the positions as a mixed straddle.
Positions in a mixed straddle are not subject to the mark-to-
market rule of section 1256, but instead are subject to rules
written under regulations to prevent the deferral of tax or the
conversion of short-term capital gain to long-term capital gain
or long-term capital loss into short-term capital loss.
Transactions by a corporation in its own stock
A corporation does not recognize gain or loss on the
receipt of money or other property in exchange for its own
stock. Likewise, a corporation does not recognize gain or loss
when it redeems its stock with cash, for less or more than it
received when the stock was issued. In addition, a corporation
does not recognize gain or loss on any lapse or acquisition or
an option to buy or sell its stock (sec. 1032).
House Bill
No provision. However, section 124(c) and (d) of H.R.
4541 \68\ contained the following provisions:
---------------------------------------------------------------------------
\68\ H.R. 4541 passed the House of Representatives on October 19,
2000.
---------------------------------------------------------------------------
In general
Except in the case of dealer securities futures contracts
described below, securities futures contracts are not treated
as section 1256 contracts. Thus, holders of these contracts are
not subject to the mark-to-market rules of section 1256 and are
not eligible for 60-percent long-term capital gain treatment
under section 1256. Instead, gain or loss on these contracts
will be recognized under the general rules relating to the
disposition of property. \69\
---------------------------------------------------------------------------
\69\ Any securities futures contract which is not a section 1256
contract will be treated as a ``security'' for purposes of section 475.
Thus, for example, traders in securities futures contracts
---------------------------------------------------------------------------
A securities futures contract is defined in section
3(a)(55)(A) of the Securities Exchange Act of 1934, as added by
the bill. In general, that definition provides that a
securities futures contract means a contract of sale for future
delivery of a single security or a narrow-based security index.
A securities futures contract will not be treated as a
commodities futures contract for purposes of the Code.
Treatment of gains and losses
The bill provides that any gain or loss from the sale or
exchange of a securities futures contract (other than a dealer
securities futures contract) will be considered as gain or loss
from the sale or exchange of property which has the same
character as the property to which the contract relates has (or
would have) in the hands of the taxpayer. Thus, if the
underlying security would be a capital asset in the taxpayer's
hands, then gain or loss from the sale or exchange of the
securities futures contract would be capital gain or loss. The
bill also provides that the termination of a securities futures
contract which is a capital asset will be treated as a sale or
exchange of the contract.
Capital gain treatment will not apply to contracts which
themselves are not capital assets because of the exceptions to
the definition of a capital asset relating to inventory (sec.
1221(a)(1)) or hedging (sec. 1221(a)(7)), or to any income
derived in connection with a contract which would otherwise be
treated as ordinary income.
Except as otherwise provided in regulations under section
1092(b) (which treats certain losses from a straddle as long-
term capital losses) and section 1234B, as added by the bill,
any capital gain or loss from the sale or exchange of a
securities futures contract to sell property (i.e., the short
side of a securities futures contract) will be short-term
capital gain or loss. In other words, a securities futures
contract to sell property is treated as equivalent to a short
sale of the underlying property.
Wash sale rules
The bill clarifies that, under the ash sale rules, a
contract or option to acquire or sell stock or securities shall
include options and contracts that are (or may be) settled in
cash or property other than the stock or securities to which
the contract relates. Thus, for example, the acquisition,
within the period set forth in section 1091, of a securities
futures contract to acquire stock of a corporation could cause
the taxpayer's loss on the sale of stock in that corporation to
be disallowed, notwithstanding that the contract may be settled
in cash.
Short sale rules
In applying the short sale rules, a securities futures
contract to acquire property will be treated in manner similar
to the property itself. Thus, for example, the holding of a
securities futures contract to acquire property and the short
sale of property which is substantially identical to the
property under the contract will result in the application of
the rules of section 1233(b).\70\ In addition, as stated above,
a securities futures contract to sell is treated in a manner
similar to a short sale of the property.
---------------------------------------------------------------------------
\70\ Because securities futures contracts are not treated as
futures contracts with respect to commodities, the rule providing that
commodity futures are not substantially identical if they call for
delivery in different months does not apply.
---------------------------------------------------------------------------
Straddle rules
Stock which is part of a straddle at least one of the
offsetting positions of which is a securities futures contract
with respect to the stock or substantially identical stock will
be subject to the straddle rules of section 1092. Treasury
regulations under section 1092 applying the principles of the
section 1233(b) and (d) short sale rules to positions in a
straddle will also apply.
For example, assume a taxpayer holds a long-term position
in actively traded stock (which is a capital asset in the
taxpayer's hands) and enters into a securities futures contract
to sell substantially identical stock (at a time when the
position in the stock has not appreciated in value so that the
constructive sale rules of section 1259 do not apply). The
taxpayer has a straddle. Treasury regulations prescribed under
section 1092(b) applying the principles of section 1233(d) will
apply, so that any loss on closing the securities futures
contract will be a long-term capital loss.
Section 1032
A corporation will not recognize gain or loss on
transactions in securities futures contracts with respect to
its own stock.
Holding period
If property is delivered in satisfaction of a securities
futures contract to acquire property (other than a contract to
which section 1256 applies), the holding period for the
property will include the period the taxpayer held the
contract, provided that the contract was a capital asset in the
hands of the taxpayer.
Regulations
The Secretary of the Treasury or his delegate has the
authority to prescribe regulations to provide for the proper
treatment of securities futures contracts under provisions of
the Internal Revenue Code.
Dealers in securities futures contracts
In general, the bill provides that securities futures
contracts and options on such contracts are not section 1256
contracts. The bill provides, however, that ``dealer securities
futures contracts'' will be treated as section 1256 contracts.
The term `'dealer securities futures contract'' means a
securities futures contract which is entered into by a dealer
in the normal course of his or her trade or business activity
of dealing in such contracts, and is traded on a qualified
board of trade or exchange. The term also includes any option
to enter into securities futures contracts purchased or granted
by a dealer in the normal course of his or her trade or
business activity of dealing in such options. The determination
of who is to be treated as a dealer in securities futures
contracts is to be made by the Secretary of the Treasury or his
delegate not later than July 1, 2001. Accordingly, the bill
authorizes the Secretary to treat a person as a dealer in
securities futures contracts or options on such contracts if
the Secretary determines that the person performs, with respect
to such contracts or options, functions similar to an equity
options dealer, as defined under present law.
The determination of who is a dealer in securities
futures contracts is to be made in a manner that is appropriate
to carry out the purposes of the provision, which generally is
to provide comparable tax treatment between dealers in
securities futures contracts, on the one hand, and dealers in
equity options, on the other. Although traders in securities
futures contracts (and options on such contracts) may not have
the same market-making obligations as market makers or
specialists in equity options, many traders are expected to
perform analogous functions to such market makers or
specialists by providing market liquidity for securities
futures contracts (and options) even in the absence of a legal
obligation to do so. Accordingly, the absence of market-making
obligations is not inconsistent with a determination that a
class of traders are dealers in securities futures contracts
(and options), if the relevant factors, including providing
market liquidity for such contracts (and options), indicate
that the market functions of the traders is comparable to that
of equity options dealers.
As in the case of dealer equity options, gains and losses
allocated to any limited partner or limited entrepreneur with
respect to a dealer securities futures contract will be treated
as short-term capital gain or loss.
Treatment of options under section 1256
The bill modifies the definition of ``equity option'' for
purposes of section 1256 to take into account changes made by
the non-tax provisions of the bill. Only options dealers are
eligible for section 1256 with respect to equity options. The
term ``equity option'' is modified to include an option to buy
or sell stock, or an option the value of which is determined,
directly or indirectly, by reference to any stock, or any
``narrow-based security index,'' as defined in section 3(a)(55)
of the Securities Exchange Act of 1934 (as modified by the
bill). An equity option includes an option with respect to a
group of stocks only if the group meets the requirements for a
narrow-based security index.
As under present law, listed options that are not
``equity options'' are considered ``nonequity options'' to
which section 1256 applies for all taxpayers. For example,
options relating to broad-based groups of stocks and broad
based stock indexes will continue to be treated as nonequity
options under section 1256.
Definition of contract markets
The non-tax provisions of the bill designate certain new
contract markets. The new contract markets will be contract
markets for purposes of the Code, except to the extent provided
in Treasury regulations.
Effective Date
These provisions will take effect on the date of
enactment of the bill.
Senate Amendment
No provision.
Conference Agreement
The conference agreement follows the tax provisions
contained in H.R. 4541.
TAX COMPLEXITY ANALYSIS
Section 4022(b) of the Internal Revenue Service Reform
and Restructuring Act of 1998 (the ``IRS Reform Act'') requires
the Joint Committee on Taxation (in consultation with the
Internal Revenue Service and the Department of the Treasury) to
provide a tax complexity analysis. The complexity analysis is
required for all legislation reported by the House Committee on
Ways and Means, the Senate Committee on Finance, or any
committee of conference if the legislation includes a provision
that directly or indirectly amends the Internal Revenue Code
and has widespread applicability to individuals or small
businesses.
The staff of the Joint Committee on Taxation has
determined that a complexity analysis is not required under
section 4022(b) of the IRS Reform Act because the bill contains
no provisions that amend the Internal Revenue Code and that
have ``widespread applicability'' to individuals or small
businesses.
NEW MARKETS VENTURE CAPITAL PROGRAM ACT OF 2000
The conference agreement would enact the provisions of
H.R. 5663, as introduced on December 14, 2000. The text of that
bill follows:
A BILL to provide for community renewal and new markets initiatives
Be it enacted by the Senate and House of Representatives
of the United States of America in Congress assembled,
SEC. 101. NEW MARKETS VENTURE CAPITAL PROGRAM.
(a) Short Title.--This section may be cited as the ``New
Markets Venture Capital Program Act of 2000''.
(b) New Markets Venture Capital Program.--Title III of
the Small Business Investment Act of 1958 (15 U.S.C. 681 et
seq.) is amended--
(1) in the heading for the title, by striking
``SMALL BUSINESS INVESTMENT COMPANIES'' and inserting
``INVESTMENT DIVISION PROGRAMS'';
(2) by inserting before the heading for section 301
the following:
``PART A--SMALL BUSINESS INVESTMENT COMPANIES'';
and
(3) by adding at the end the following:
``PART B--NEW MARKETS VENTURE CAPITAL PROGRAM
``SEC. 351. DEFINITIONS.
``In this part, the following definitions apply:
``(1) Developmental venture capital.--The term
`developmental venture capital' means capital in the
form of equity capital investments in businesses made
with a primary objective of fostering economic
development in low-income geographic areas. For the
purposes of this paragraph, the term `equity capital'
has the same meaning given such term in section
303(g)(4).
``(2) Low-income individual.--The term `low-income
individual' means an individual whose income (adjusted
for family size) does not exceed--
``(A) for metropolitan areas, 80 percent of
the area median income; and
``(B) for nonmetropolitan areas, the
greater of--
``(i) 80 percent of the area median
income; or
``(ii) 80 percent of the statewide
nonmetropolitan area median income.
``(3) Low-income geographic area--the term `low-
income geographic area' means--
``(A) any population census tract (or in
the case of an area that is not tracted for
population census tracts, the equivalent county
division, as defined by the Bureau of the
Census of the Department of Commerce for
purposes of defining poverty areas), if--
``(i) the poverty rate for that
census tract is not less than 20
percent;
``(ii) in the case of a tract--
``(I) that is located
within a metropolitan area, 50
percent or more of the
households in that census tract
have an income equal to less
than 60 percent of the area
median gross income; or
``(II) that is not located
within a metropolitan area, the
median household income for
such tract does not exceed 80
percent of the statewide median
household income; or
``(iii) as determined by the
Administrator based on objective
criteria, a substantial population of
low-income individuals reside, an
inadequate access to investment capital
exists, or other indications of
economic distress exist in that census
tract; or
``(B) any area located within--
``(i) a HUBZone (as defined in
section 3(p) of the Small Business Act
and the implementing regulations issued
under that section);
``(ii) an urban empowerment zone or
urban enterprise community (as
designated by the Secretary of Housing
and Urban Development); or
``(iii) a rural empowerment zone or
rural enterprise community (as
designated by the Secretary of
Agriculture).
``(4) New markets venture capital company.--The
term `New Markets Venture Capital company' means a
company that--
``(A) has been granted final approval by
the Administrator under section 354(e); and
``(B) has entered into a participation
agreement with the Administrator.
``(5) Operational assistance.--The term
`operational assistance' means management, marketing,
and other technical assistance that assists a small
business concern with business development.
``(6) Participation agreement.--The term
`participation agreement' means an agreement, between
the Administrator and a company granted final approval
under section 354(e), that--
``(A) details the company's operating plan
and investment criteria; and
``(B) requires the company to make
investments in smaller enterprises at least 80
percent of which are located in low-income
geographic areas.
``(7) Specialized small business investment
company.--The term `specialized small business
investment company' means any small business investment
company that--
``(A) invests solely in small business
concerns that contribute to a well-balanced
national economy by facilitating ownership in
such concerns by persons whose participation in
the free enterprise system is hampered because
of social or economic disadvantages;
``(B) is organized or chartered under State
business or nonprofit corporations statutes, or
formed as a limited partnership; and
``(C) was licensed under section 301(d), as
in effect before September 30, 1996.
``(8) State.--The term `State' means such of the
several States, the District of Columbia, the
Commonwealth of Puerto Rico, the Virgin Islands, Guam,
American Samoa, the Commonwealth of the Northern
Mariana Islands, and any other commonwealth, territory,
or possession of the United States;
``SEC. 352. PURPOSES.
``The purposes of the New Markets Venture Capital Program
established under this part are--
``(1) to promote economic development and the
creation of wealth and job opportunities in low-income
geographic areas and among individuals living in such
areas by encouraging developmental venture capital
investments in smaller enterprises primarily located in
such areas; and
``(2) to establish a developmental venture capital
program, with the mission of addressing the unmet
equity investment needs of small enterprises located in
low-income geographic areas, to be administered by the
Administrator--
``(A) to enter into participation
agreements with New Markets Venture Capital
companies;
``(B) to guarantee debentures of New
Markets Venture Capital companies to enable
each such company to make developmental venture
capital investments in smaller enterprises in
low-income geographic areas; and
``(C) to make grants to New Markets Venture
Capital companies, and to other entities, for
the purpose of providing operational assistance
to smaller enterprises financed, or expected to
be financed, by such companies.
``SEC. 353. ESTABLISHMENT.
``In accordance with this part, the Administrator shall
establish a New Markets Venture Capital Program, under which
the Administrator may--
``(1) enter into participation agreements with
companies granted final approval under section 354(e)
for the purposes set forth in section 352;
``(2) guarantee the debentures issued by New
Markets Venture Capital companies as provided in
section 355; and
``(3) make grants to New Markets Venture Capital
companies, and to other entities, under section 358.
``SEC. 354. SELECTION OF NEW MARKETS VENTURE CAPITAL COMPANIES.
``(a) Eligibility.--A company shall be eligible to apply
to participate, as a New Markets Venture Capital company, in
the program established under this part if--
``(1) the company is a newly formed for-profit
entity or a newly formed for-profit subsidiary of an
existing entity;
``(2) the company has a management team with
experience in community development financing or
relevant venture capital financing; and
``(3) the company has a primary objective of
economic development of low-income geographic areas.
``(b) Application.--To participate, as a New Markets
Venture Capital company, in the program established under this
part a company meeting the eligibility requirements set forth
in subsection (a) shall submit an application to the
Administrator that includes--
``(1) a business plan describing how the company
intends to make successful developmental venture
capital investments in identified low-income geographic
areas;
``(2) information regarding the community
development finance or relevant venture capital
qualifications and general reputation of the company's
management;
``(3) a description of how the company intends to
work with community organizations and to seek to
address the unmet capital needs of the communities
served;
``(4) a proposal describing how the company intends
to use the grant funds provided under this part to
provide operational assistance to smaller enterprises
financed by the company, including information
regarding whether the company intends to use licensed
professionals, when necessary, on the company's staff
or from an outside entity;
``(5) with respect to binding commitments to be
made to the company under this part, an estimate of the
ratio of cash to in-kind contributions;
``(6) a description of the criteria to be used to
evaluate whether and to what extent the company meets
the objectives of the program established under this
part;
``(7) information regarding the management and
financial strength of any parent firm, affiliated firm,
or any other firm essential to the success of the
company's business plan; and
``(8) such other information as the Administrator
may require.
``(c) Conditional Approval.--
``(1) In general.--From among companies submitting
applications under subsection (b), the Administrator
shall, in accordance with this subsection,
conditionally approval companies to participate in the
New Markets Venture Capital Program.
``(2) Selection criteria.--In selecting companies
under paragraph (1), the Administrator shall consider
the following:
``(A) The likelihood that the company will
meet the goal of its business plan.
``(B) The experience and background of the
company's management team.
``(C) The need for developmental venture
capital investments in the geographic areas in
which the company intends to invest.
``(D) The extent to which the company will
concentrate its activities on serving the
geographic areas in which it intends to invest.
``(E) The likelihood that the company will
be able to satisfy the conditions under
subsection (d).
``(F) The extent to which the activities
proposed by the company will expand economic
opportunities in the geographic areas in which
the company intends to invest.
``(G) The strength of the company's
proposal to provide operational assistance
under this part as the proposal relates to the
ability of the applicant to meet applicable
cash requirements and properly utilize in-kind
contributions, including the use of resources
for the services of licensed professionals,
when necessary, whether provided by persons on
the company's staff or by persons outside of
the company.
``(H) Any other factors deemed appropriate
by the Administrator.
``(3) Nationwide distribution.--The Administrator
shall select companies under paragraph (1) in such a
way that promotes investment nationwide.
``(d) Requirements To Be Met for Final Approval.--The
Administrator shall grant each conditionally approved company a
period of time, not to exceed 2 years, to satisfy the following
requirements:
``(1) Capital requirement.--Each conditionally
approved company shall raise not less than $5,000,000
of private capital or binding capital commitments from
one or more investors (other than agencies or
departments of the Federal Government) who met criteria
established by the Administrator.
``(2) Nonadministration resources for operational
assistance.--
``(A) In general.--In order to provide
operational assistance to smaller enterprises
expected to be financed by the company, each
conditionally approved company--
``(i) shall have binding
commitments (for contribution in cash
or in kind)--
``(I) from any sources
other than the Small Business
Administration that meet
criteria established by the
Administrator;
``(II) payable or available
over a multiyear period
acceptable to the Administrator
(not to exceed 10 years); and
``(III) in an amount not
less than 30 percent of the
total amount of capital and
commitments raised under
paragraph (1);
``(ii) shall have purchased an
annuity--
``(I) from an insurance
company acceptable to the
Administrator;
``(II) using funds (other
than the funds raised under
paragraph (1)), from any source
other than the Administrator;
and
``(III) that yields cash
payments over a multiyear
period acceptable to the
Administrator (not to exceed 10
years) in an amount not less
than 30 percent of the total
amount of capital and
commitments raised under
paragraph (1); or
``(iii) shall have binding
commitments (for contributions in cash
or in kind) of the type described in
clause (i) and shall have purchased an
annuity of the type described in clause
(ii), which in the aggregate make
available, over a multiyear period
acceptable to the Administrator (not to
exceed 10 years), an amount not less
than 30 percent of the total amount of
capital and commitments raised under
paragraph (1).
``(B) Exception.--The Administrator may, in
the discretion of the Administrator and based
upon a showing of special circumstances and
good cause, consider an applicant to have
satisfied the requirements of subparagraph (A)
if the applicant has--
``(i) a viable plan that reasonably
projects the capacity of the applicant
to raise the amount (in cash or in-
kind) required under subparagraph (A);
and
``(ii) binding commitments in an
amount equal to not less than 20
percent of the total amount required
under paragraph (A).
``(C) Limitation.--In order to comply with
the requirements of subparagraphs (A) and (B),
the total amount of a company's in-kind
contributions may not exceed 50 percent of the
company's total contributions.
``(e) Final Approval; Designation.--The Administrator
shall, with respect to each applicant conditionally approved to
operate as a New Markets Venture Capital company under
subsection (c), either--
``(1) grant final approval to the applicant to
operate as a New Markets Venture Capital company under
this part and designate the applicant as such a
company, if the applicant--
``(A) satisfies the requirements of
subsection (d) on or before the expiration of
the time period described in that subsection;
and
``(B) enters into a participation agreement
with the Administrator; or
``(2) if the applicant fails to satisfy the
requirements of subsection (d) on or before the
expiration of the time period described in that
subsection, revoke the conditional approval granted
under that subsection.
``SEC. 355. DEBENTURES.
``(a) In General.--The Administrator may guarantee the
timely payment of principal and interest, as scheduled, on
debentures issued by any New Markets Venture Capital company.
``(b) Terms and Conditions.--The Administrator may make
guarantees under this section on such terms and conditions as
it deems appropriate, except that the term of any debenture
guaranteed under this section shall not exceed 15 years.
``(c) Full Faith and Credit of the United States.--The
full faith and credit of the United States is pledged to pay
all amounts that may be required to be paid under any guarantee
under this part.
``(d) Maximum Guarantee.--
``(1) In general.--Under this section, the
Administrator may guarantee the debentures issued by a
New Markets Venture Capital company only to the extent
that the total face amount of outstanding guaranteed
debentures of such company does not exceed 150 percent
of the private capital of the company, as determined by
the Administrator.
``(2) Treatment of certain federal funds.--For the
purposes of paragraph (1), private capital shall
include capital that is considered to be Federal funds,
if such capital is contributed by an investor other
than an agency or department of the Federal Government.
``SEC. 356. ISSUANCE AND GUARANTEE OF TRUST CERTIFICATES.
``(a) Issuance.--The Administrator may issue trust
certificates representing ownership of all or a fractional part
of debentures issued by a New Markets Venture Capital company
and guaranteed by the Administrator under this part, if such
certificates are based on and backed by a trust or pool
approved by the Administrator and composed solely of guaranteed
debentures.
``(b) Guarantee.--
``(1) In general.--The Administrator may, under
such terms and conditions as it deems appropriate,
guarantee the timely payment of the principal of and
interest on trust certificates issued by the
Administrator or its agents for purposes of this
section.
``(2) Limitation.--Each guarantee under this
subsection shall be limited to the extent of principal
and interest on the guaranteed debentures that compose
the trust or pool.
``(3) Prepayment or default.--In the event that a
debenture in a trust or pool is prepaid, or in the
event of default of such a debenture, the guarantee of
timely payment of principal and interest on the trust
certificates shall be reduced in proportion to the
amount of principal and interest such prepaid debenture
represents in the trust or pool. Interest on prepaid or
defaulted debentures shall accrue and be guaranteed by
the Administrator only through the date of payment of
the guarantee. At any time during its term, a trust
certificate may be called for redemption due to
prepayment or default of all debentures.
``(c) Full Faith and Credit of the United States.--The
full faith and credit of the United States is pledged to pay
all amounts that may be required to be paid under any guarantee
of a trust certificate issued by the Administrator or its
agents under this section.
``(d) Fees.--The Administrator shall not collect a fee
for any guarantee of a trust certificate under this section,
but any agent of the Administrator may collect a fee approved
by the Administrator for the functions described in subsection
(f)(2).
``(e) Subrogation and Ownership Rights.--
``(1) Subrogation.--In the event the Administrator
pays a claim under a guarantee issued under this
section, it shall be subrogated fully to the rights
satisfied by such payment.
``(2) Ownership rights.--No Federal, State, or
local law shall preclude or limit the exercise by the
Administrator of its ownership rights in the debentures
residing in a trust or pool against which trust
certificates are issued under this section.
``(f) Management and Administration.--
``(1) Registration.--The Administrator may provide
for a central registration of all trust certificates
issued under this section.
``(2) Contracting of functions.--
``(A) In general.--The Administrator may
contract with an agent or agents to carry out
on behalf of the Administrator the pooling and
the central registration functions provided for
in this section including, notwithstanding any
other provision of law--
``(i) maintenance, on behalf of and
under the direction of the
Administrator, of such commercial bank
accounts or investments in obligations
of the United States as may be
necessary to facilitate the creation of
trusts or pools backed by debentures
guaranteed under this part; and
``(ii) the issuance of trust
certificates to facilitate the creation
of such trusts or pools.
``(B) Fidelity bond or insurance
requirement.--Any agent performing functions on
behalf of the Administrator under this
paragraph shall provide a fidelity bond or
insurance in such amounts as the Administrator
determines to be necessary to fully protect the
interests of the United States.
``(3) Regulation of brokers and dealers.--The
Administrator may regulate brokers and dealers in trust
certificates issued under this section.
``(4) Electronic registration.--Nothing in this
subsection may be construed to prohibit the use of a
book-entry or other electronic form of registration for
trust certificates issued under this section.
``SEC. 357. FEES.
``Except as provided in section 356(d), the Administrator
may charge such fees as it deems appropriate with respect to
any guarantee or grant issued under this part.
``SEC. 358. OPERATIONAL ASSISTANCE GRANTS.
``(a) In General.--
``(1) Authority.--In accordance with this section,
the Administrator may make grants to New Markets
Venture Capital companies and to other entities, as
authorized by this part, to provide operational
assistance to smaller enterprises financed, or expected
to be financed, by such companies or other entities.
``(2) Terms.--Grants made under this subsection
shall be made over a multiyear period not to exceed 10
years, under such other terms as the Administrator may
require.
``(3) Grants to specialized small business
investment companies.--
``(A) Authority.--In accordance with this
section, the Administrator may make grants to
specialized small business investment companies
to provide operational assistance to smaller
enterprises financed, or expected to be
financed, by such companies after the effective
date of the New Markets Venture Capital Program
Act of 2000.
``(B) Use of funds.--The proceeds of a
grant made under this paragraph may be used by
the company receiving such grant only to
provide operational assistance in connection
with an equity investment (made with capital
raised after the effective date of the New
Markets Venture Capital Program Act of 2000) in
a business located in a low-income geographic
area.
``(C) Submission of plans.--A specialized
small business investment company shall be
eligible for a grant under this section only if
the company submits to the Administrator, in
such form and manner as the Administrator may
require, a plan for use of the grant.
``(4) Grant amount.--
``(A) New markets venture capital
companies.--The amount of a grant made under
this subsection to a New Markets Venture
Capital company shall be equal to the resources
(in cash or in kind) raised by the company
under section 354(d)(2).
``(B) Other entities.--The amount of a
grant made under this subsection to any entity
other than a New Markets Venture Capital
company shall be equal to the resources (in
cash or in kind) raised by the entity in
accordance with the requirements applicable to
New Markets Venture Capital companies set forth
in section 354(d)(2).
``(5) Pro rata reductions.--If the amount made
available to carry out this section is insufficient for
the Administrator to provide grants in the amounts
provided for in paragraph (4), the Administrator shall
make pro rata reductions in the amounts otherwise
payable to each company and entity under such
paragraph.
``(b) Supplemental Grants.--
``(1) In general.--The Administrator may make
supplemental grants to New Markets Venture Capital
companies and to other entities, as authorized by this
part under such terms as the Administrator may require,
to provide additional operational assistance to smaller
enterprises financed, or expected to be financed, by
the companies.
``(2) Matching requirement.--The Administrator may
require, as a condition of any supplemental grant made
under this subsection, that the company or entity
receiving the grant provide from resources (in cash or
in kind), other then those provided by the
Administrator, a matching contribution equal to the
amount of the supplemental grant.
``(c) Limitation.--None of the assistance made available
under this section may be used for any overhead or general and
administrative expense of a New Markets Venture Capital company
or a specialized small business investment company.
``SEC. 359. BANK PARTICIPATION.
``(a) In General.--Except as provided in subsection (b),
any national bank, any member bank of the Federal Reserve
System, and (to the extent permitted under applicable State
law) any insured bank that is not a member of such system, may
invest in any New Markets Venture Capital company, or in any
entity established to invest solely in New Markets Venture
Capital companies.
``(b) Limitation.--No bank described in subsection (a)
may make investments described in such subsection that are
greater than 5 percent of the capital and surplus of the bank.
``SEC. 360. FEDERAL FINANCING BANK.
``Section 318 shall not apply to any debenture issued by
a New Markets Venture Capital company under this part.
``SEC. 361. REPORTING REQUIREMENTS.
``Each New Markets Venture Capital company that
participates in the program established under this part shall
provide to the Administrator such information as the
Administrator may require, including--
``(1) information related to the measurement
criteria that the company proposed in its program
application; and
``(2) in each case in which the company under this
part makes an investment in, or a loan or grant to, a
business that is not located in a low-income geographic
area, a report on the number and percentage of
employees of the business who reside in such areas.
``SEC. 362. EXAMINATIONS.
``(a) In General.--Each New Markets Venture Capital
company that participates in the program established under this
part shall be subject to examinations made at the direction of
the Investment Division of the Small Business Administration in
accordance with this section.
``(b) Assistance of Private Sector Entities.--
Examinations under this section may be conducted with the
assistance of a private sector entity that has both the
qualifications and the expertise necessary to conduct such
examinations.
``(c) Costs.--
``(1) Assessment.--
``(A) In general.--The Administrator may
assess the cost of examinations under this
section, including compensation of the
examiners, against the company examined.
``(B) Payment.--Any company against which
the Administrator assesses costs under this
paragraph shall pay such costs.
``(2)Deposit of funds.--Funds collected under this
section shall be deposited in the account for salaries
and expenses of the Small Business Administration.
``SEC. 363. INJUNCTIONS AND OTHER ORDERS.
``(a) In General.--Whenever, in the judgment of the
Administrator, a New Markets Venture Capital company or any
other person has engaged or is about to engage in any acts or
practices which constitute or will constitute a violation of
any provision of this Act, or of any rule or regulation under
this Act, or of any order issued under this Act, the
Administrator may make application to the proper district court
of the United States or a United States court of any place
subject to the jurisdiction of the United States for an order
enjoining such acts or practices, or for an order enforcing
compliance with such provision, rule, regulation, or order, and
such courts shall have jurisdiction of such actions and, upon a
showing by the Administrator that such New Markets Venture
Capital company or other person has engaged or is about to
engage in any such acts or practices, a permanent or temporary
injunction, restraining order, or other order, shall be granted
without bond.
``(b) Jurisdiction.--In any proceeding under subsection
(a), the court as a court of equity may, to such extent as it
deems necessary, take exclusive jurisdiction of the New Market
Venture Capital company and the assets thereof, wherever
located, and the court shall have jurisdiction in any such
proceeding to appoint a trustee or receiver to hold or
administer under the direction of the court the assets so
possessed.
``(c) Administrator as Trustee or Receiver.--
``(1) Authority.--The Administrator may act as
trustee or receiver of a New Markets Venture Capital
company.
``(2) Appointment.--Upon request of the
Administrator, the court may appoint the Administrator
to act as a trustee or receiver of a New Markets
Venture Capital company unless the court deems such
appointment inequitable or otherwise inappropriate by
reason of the special circumstances involved.
``SEC. 364. ADDITIONAL PENALTIES FOR NONCOMPLIANCE.
``(a) In General.--With respect to any New Markets
Venture Capital company that violates or fails to comply with
any of the provisions of this Act, of any regulation issued
under this Act, or of any participation agreement entered into
under this Act, the Administrator may in accordance with this
section--
``(1) void the participation agreement between the
Administrator and the company; and
``(2) cause the company to forfeit all of the
rights and privileges derived by the company from this
Act.
``(b) Adjudication of Noncompliance.--
``(1) In general.--Before the Administrator may
cause a New Markets Venture Capital company to forfeit
rights or privileges under subsection (a), a court of
the United States of competent jurisdiction must find
that the company committed a violation, or failed to
comply, in a cause of action brought for that purpose
in the district, territory, or other place subject to
the jurisdiction of the United States, in which the
principal office of the company is located.
``(2) Parties authorized to file causes of
action.--Each cause of action brought by the United
States under this subsection shall be brought by the
Administrator or by the Attorney General.
``SEC. 365. UNLAWFUL ACTS AND OMISSIONS; BREACH OF FIDUCIARY DUTY.
``(a) Parties Deemed To Commit a Violation.--Whenever any
New Markets Venture Capital company violates any provision of
this Act, of a regulation issued under this Act, or of a
participation agreement entered into under this Act, by reason
of its failure to comply with its terms or by reason of its
engaging in any act or practice that constitutes or will
constitute a violation thereof, such violation shall also be
deemed to be a violation and an unlawful act committed by any
person who, directly or indirectly, authorizes, orders,
participates in, causes, brings about, counsels, aids, or abets
in the commission of any acts, practices, or transactions that
constitute or will constitute, in whole or in part, such
violation.
``(b) Fiduciary Duties.--It shall be unlawful for any
officer, director, employee, agent, or other participant in the
management or conduct of the affairs of a New Markets Venture
Capital company to engage in any act or practice, or to omit
any act or practice, in breach of the person's fiduciary duty
as such officer, director, employee, agent, or participant if,
as a result thereof, the company suffers or is in imminent
danger of suffering financial loss or other damage.
``(c) Unlawful Acts.--Except with the written consent of
the Administrator, it shall be unlawful--
``(1) for any person to take office as an officer,
director, or employee of any New Markets Venture
Capital company, or to become an agent or participant
in the conduct of the affairs or management of such a
company, if the person--
``(A) has been convicted of a felony, or
any other criminal offense involving dishonesty
or breach of trust, or
``(B) has been found civilly liable in
damages, or has been permanently or temporarily
enjoined by an order, judgment, or decree of a
court of competent jurisdiction, by reason of
any act or practice involving fraud, or breach
of trust; and
``(2) for any person continue to serve in any of
the capacities described in paragraph (1), if--
``(A) the person is convicted of a felony,
or any other criminal offense involving
dishonesty or breach of trust, or
``(B) the person is found civilly liable in
damages, or is permanently or temporarily
enjoined by an order, judgment, or decree of a
court of competent jurisdiction, by reason of
any act or practice involving fraud or breach
of trust.
``SEC. 366. REMOVAL OR SUSPENSION OF DIRECTORS OR OFFICERS.
``Using the procedures for removing or suspending a
director or an officer of a licensee set forth in section 313
(to the extent such procedures are not inconsistent with the
requirements of this part), the Administrator may remove or
suspend any director or officer of any New Markets Venture
Capital company.
``SEC. 367. REGULATIONS.
``The Administrator may issue such regulations as it
deems necessary to carry out the provisions of this part in
accordance with its purposes.
``SEC. 368. AUTHORIZATIONS OF APPROPRIATIONS.
``(a) In General.--There are authorized to be
appropriated for fiscal years 2001 through 2006, to remain
available until expended, the following sums:
``(1) Such subsidy budget authority as may be
necessary to guarantee $150,000,000 of debentures under
this part.
``(2) $30,000,000 to make grants under this part.
``(b) Funds Collected for Examinations.--Funds deposited
under section 362(c)(2) are authorized to be appropriated only
for the costs of examinations under section 362 and for the
costs of other oversight activities with respect to the program
established under this part.''
(c) Conforming Amendment.--Section 20(e)(1)(C) of the Small
Business Act (15 U.S.C. 631 note) is amended by inserting
``part A of'' before ``title III''.
(d) Calculation of Maximum Amount of SBIC Leverage.--
(1) Maximum leverage.--Section 303(b)(2) of the
Small Business Investment Act of 1958 (15 U.S.C.
683(b)(2)) is amended to read as follows:
``(2) Maximum leverage.--
``(A) In general.--After March 31, 1993,
the maximum amount of outstanding leverage made
available to a company licensed under section
301(c) of this Act shall be determined by the
amount of such company's private capital--
``(i) if the company has private
capital of not more than $15,000,000,
the total amount of leverage shall not
exceed 300 percent of private capital;
``(ii) if the company has private
capital of more than $15,000,000 but
not more than $30,000,000, the total
amount of leverage shall not exceed
$45,000,000 plus 200 percent of the
amount of private capital over
$15,000,000; and
``(iii) if the company has private
capital of more than $30,000,000, the
total amount of leverage shall not
exceed $75,000,000 plus 100 percent of
the amount of private capital over
$30,000,000 but not to exceed an
additional $15,000,000.
``(B) Adjustments.--
``(i) In general.--The dollar
amounts in clauses (i), (ii), and (iii)
of subparagraph (A) shall be adjusted
annually to reflect increases in the
Consumer Price Index established by the
Bureau of Labor Statistics of the
Department of Labor.
``(ii) Initial adjustments.--The
initial adjustments made under this
subparagraph after the date of the
enactment of the Small Business
Reauthorization Act of 1937 shall
reflect only increases from March 31,
1993.
``(C) Investments in low-income geographic
areas.--In calculating the outstanding leverage
of a company for the purposes of subparagraph
(A), the Administrator shall not include the
amount of the cost basis of any equity
investment made by the company in a smaller
enterprise located in a low-income geographic
area (as defined in section 351), to the extent
that the total of such amounts does not exceed
50 percent of the company's private capital.''.
(2) Maximum aggregate leverage.--Section 303(b)(4)
of the Small Business Investment Act of 1958 (15 U.S.C.
683(b)(4)) is amended by adding at the end the
following new subparagraph:
``(D) Investments in low-income geographic
areas.--In calculating the aggregate
outstanding leverage of a company for the
purposes of subparagraph (A), the Administrator
shall not include the amount of the cost basis
of any equity investment made by the company in
a smaller enterprise located in a low-income
geographic area (as defined in section 351), to
the extent that the total of such amounts does
not exceed 50 percent of the company's private
capital.''
(e) Bankruptcy Exemption for New Markets Venture Capital
Companies.--Section 109(b)(2) of title 11, United States Code,
is amended by inserting ``a New Markets Venture Capital company
as defined in section 351 of the Small Business Investment Act
of 1958,'' after ``homestead association,''.
(f) Federal Savings Associations.--Section 5(c)(4) of the
Home Owners' Loan Act (12 U.S.C. 1464(c)(4)) is amended by
adding at the end the following:
``(F) New markets venture capital
companies.--A Federal savings association may
invest in stock, obligations, or other
securities of any New Markets Venture Capital
company as defined in section 351 of the Small
Business Investment Act of 1958, except that a
Federal savings association may not make any
investment under this subparagraph if its
aggregate outstanding investment under this
subparagraph would exceed 5 percent of the
capital and surplus of such savings
association.''.
SEC. 102. BUSINESSLINC GRANTS AND COOPERATIVE AGREEMENTS.
Section 8 of the Small Business Act (15 U.S.C. 637) is
amended by adding at the end the following:
``(n) Business Grants and Cooperative Agreements.--
``(1) In general.--In accordance with this
subsection, the Administrator may make grants to and
enter into cooperative agreements with any coalition of
private entities, public entities, or any combination
of private and public entities--
``(A) to expand business-to-business
relationships between large and small
businesses; and
``(B) to provide businesses, directly or
indirectly, with online information and a
database of companies that are interested in
mentor-protege programs or community-based,
statewide, or local business development
programs.
``(2) Matching requirement.--Subject to
subparagraph (B), the Administrator may make a grant to
a coalition under paragraph (1) only if the coalition
provides for activities described in paragraph (1)(A)
or (1)(B) an amount, either in kind or in cash, equal
to the grant amount.
``(3) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
subsection $6,600,000, to remain available until
expended, for each of fiscal years 2001 through
2006.''.
Small Business Reauthorization Act of 2000
The conference agreement would enact the provisions of
H.R. 5667, as introduced on December 15, 2000. The text of that
bill follows:
A Bill To provide for reauthorization of small business loan and other
programs, and for other purposes
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Small
Business Reauthorization Act of 2000''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--SMALL BUSINESS INNOVATION RESEARCH PROGRAM
Sec. 101. Short title.
Sec. 102. Findings.
Sec. 103. Extension of SBIR program.
Sec. 104. Annual report.
Sec. 105. Third phase assistance.
Sec. 106. Report on programs for annual performance plan.
Sec. 107. Output and outcome data.
Sec. 108. National Research Council reports.
Sec. 109. Federal agency expenditures for the SBIR program.
Sec. 110. Policy directive modifications.
Sec. 111. Federal and State technology partnership program.
Sec. 112. Mentoring networks.
Sec. 113. Simplified reporting requirements.
Sec. 114. Rural outreach program extension.
TITLE II--BUSINESS LOAN PROGRAMS
Sec. 201. Short title.
Sec. 202. Levels of participation.
Sec. 203. Loan amounts.
Sec. 204. Interest on defaulted loans.
Sec. 205. Prepayment of loans.
Sec. 206. Guarantee fees.
Sec. 207. Lease terms.
Sec. 208. Appraisals for loans secured by real property.
Sec. 209. Sale of guaranteed loans made for export purposes.
Sec. 210. Microloan program.
TITLE III--CERTIFIED DEVELOPMENT COMPANY PROGRAM
Sec. 301. Short title.
Sec. 302. Women-owned businesses.
Sec. 303. Maximum debenture size.
Sec. 304. Fees.
Sec. 305. Premier certified lenders program.
Sec. 306. Sale of certain defaulted loans.
Sec. 307. Loan liquidation.
TITLE IV--CORRECTIONS TO THE SMALL BUSINESS INVESTMENT ACT OF 1958
Sec. 401. Short title.
Sec. 402. Definitions.
Sec. 403. Investment in small business investment companies.
Sec. 404. Subsidy fees.
Sec. 405. Distributions.
Sec. 406. Conforming amendment.
TITLE V--REAUTHORIZATION OF SMALL BUSINESS PROGRAMS
Sec. 501. Short title.
Sec. 502. Reauthorization of small business programs.
Sec. 503. Additional reauthorizations.
Sec. 504. Cosponsorship.
TITLE VI--HUBZONE PROGRAM
Subtitle A--HUBZones in Native America
Sec. 601. Short title.
Sec. 602. HUBZone small business concern.
Sec. 603. Qualified HUBZone small business concern.
Sec. 604. Other definitions.
Subtitle B--Other HUBZone Provisions
Sec. 611. Definitions.
Sec. 612. Eligible contracts.
Sec. 613. HUBZone redesignated areas.
Sec. 614. Community development.
Sec. 615. Reference corrections.
TITLE VII--NATIONAL WOMEN'S BUSINESS COUNCIL REAUTHORIZATION
Sec. 701. Short title.
Sec. 702. Membership of the Council.
Sec. 703. Repeal of procurement project.
Sec. 704. Studies and other research.
Sec. 705. Authorization of appropriations.
TITLE VIII--MISCELLANEOUS PROVISIONS
Sec. 801. Loan application processing.
Sec. 802. Application of ownership requirements.
Sec. 803. Subcontracting preference for veterans.
Sec. 804. Small Business Development Center Program funding.
Sec. 805. Surety bonds.
Sec. 806. Size standards.
Sec. 807. Native Hawaiian organizations under section 8(a).
Sec. 808. National Veterans Business Development Corporation correction.
Sec. 809. Private sector resources for SCORE.
Sec. 810. Contract data collection.
Sec. 811. Procurement program for women-owned small business concerns.
TITLE I--SMALL BUSINESS INNOVATION RESEARCH PROGRAM
SECTION 101. SHORT TITLE.
(a) Short Title.--This title may be cited as the ``Small
Business Innovation Research Program Reauthorization Act of
2000''.
SEC. 102. FINDINGS.
Congress finds that--
(1) the small business innovation research program
established under the Small Business Innovation
Development Act of 1982, and reauthorized by the Small
Business Research and Development Enhancement Act of
1992 (in this title referred to as the ``SBIR
program'') is highly successful in involving small
businesses in federally funded research and
development;
(2) the SBIR program made the cost-effective and
unique research and development capabilities possessed
by the small businesses of the Nation available to
Federal agencies and departments;
(3) the innovative goods and services developed by
small businesses that participated in the SBIR program
have produced innovations of critical importance in a
wide variety of high-technology fields, including
biology, medicine, education, and defense;
(4) the SBIR program is a catalyst in the promotion
of research and development, the commercialization of
innovative technology, the development of new products
and services, and the continued excellence of this
Nation's high-technology industries; and
(5) the continuation of the SBIR program will
provide expanded opportunities for one of the Nation's
vital resources, its small businesses, will foster
invention, research, and technology, will create jobs,
and will increase this Nation's competitiveness in
international markets.
SEC. 103. EXTENSION OF SBIR PROGRAM.
Section 9(m) of the Small Business Act (15 U.S.C. 638(m))
is amended to read as follows:
``(m) Termination.--The authorization to carry out the
Small Business Innovation Research Program established under
this section shall terminate on September 30, 2008.''.
SEC. 104. ANNUAL REPORT.
Section 9(b)(7) of the Small Business Act (15 U.S.C.
638(b)(7)) is amended by striking ``and the Committee on Small
Business of the House of Representatives'' and inserting ``,
and to the Committee on Science and the Committee on Small
Business of the House of Representatives,''.
SEC. 105. THIRD PHASE ASSISTANCE.
Section 9(e)(4)(C)(i) of the Small Business Act (15 U.S.C.
638(e)(4)(C)(i)) is amended by striking ``; and'' and inserting
``; or''.
SEC. 106. REPORT ON PROGRAMS FOR ANNUAL PERFORMANCE PLAN.
Section 9(g) of the Small Business Act (15 U.S.C. 638(g))
is amended--
(1) in paragraph (7), by striking ``and'' at the
end;
(2) in paragraph (8), by striking the period at the
end and inserting a semicolon; and
(3) by adding at the end the following:
``(9) include, as part of its annual performance
plan as required by subsections (a) and (b) of section
1115 of title 31, United States Code, a section on its
SBIR program, and shall submit such section to the
Committee on Small Business of the Senate, and the
Committee on Science and the Committee on Small
Business of the House of Representatives; and''.
SEC. 107. OUTPUT AND OUTCOME DATA.
(a) Collection.--Section 9(g) of the Small Business Act (15
U.S.C. 638(g)), as amended by section 106 of this Act, is
further amended by adding at the end the following:
``(10) collect, and maintain in a common format in
accordance with subsection (v), such information from
awardees as is necessary to assess the SBIR program,
including information necessary to maintain the
database described in subsection (k).''.
(b) Report to Congress.--Section 9(b)(7) of the Small
Business Act (15 U.S.C. 638(b)(7)), as amended by section 104
of this Act, is further amended by inserting before the period
at the end ``, including the data on output and outcomes
collected pursuant to subsections (g)(10) and (o)(9), and a
description of the extent to which Federal agencies are
providing in a timely manner information needed to maintain the
database described in subsection (k)''.
(c) Database.--Section 9(k) of the Small Business Act (15
U.S.C. 638(k)) is amended to read as follows:
``(k) Database.--
``(1) Public database.--Not later than 180 days
after the date of enactment of the Small Business
Innovation Research Program Reauthorization Act of
2000, the Administrator shall develop, maintain, and
make available to the public a searchable, up-to-date,
electronic database that includes--
``(A) the name, size, location, and an
identifying number assigned by the
Administrator, of each small business concern
that has received a first phase or second phase
SBIR award from a Federal agency;
``(B) a description of each first phase or
second phase SBIR award received by that small
business concern, including--
``(i) an abstract of the project
funded by the award, excluding any
proprietary information so identified
by the small business concern;
``(ii) the Federal agency making
the award; and
``(iii) the date and amount of the
award;
``(C) an identification of any business
concern or subsidiary established for the
commercial application of a product or service
for which an SBIR award is made; and
``(D) information regarding mentors and
Mentoring Networks, as required by section
35(d).
``(2) Government database.--Not later than 180 days
after the date of enactment of the Small Business
Innovation Research Program Reauthorization Act of
2000, the Administrator, in consultation with Federal
agencies required to have an SBIR program pursuant to
subsection (f)(1), shall develop and maintain a
database to be used solely for SBIR program evaluation
that--
``(A) contains for each second phase award
made by a Federal agency--
``(i) information collected in
accordance with paragraph (3) on
revenue from the sale of new products
or services resulting from the research
conducted under the award;
``(ii) information collected in
accordance with paragraph (3) on
additional investment from any source,
other than first phase or second phase
SBIR or STTR awards, to further the
research and development conducted
under the award; and
``(iii) any other information
received in connection with the award
that the Administrator, in conjunction
with the SBIR program managers of
Federal agencies, considers relevant
and appropriate;
``(B) includes any narrative information
that a small business concern receiving a
second phase award voluntarily submits to
further describe the outputs and outcomes of
its awards;
``(C) includes for each applicant for a
first phase or second phase award that does not
receive such an award--
``(i) the name, size, and location,
and an identifying number assigned by
the Administration;
``(ii) an abstract of the project;
and
``(iii) the Federal agency to which
the application was made;
``(D) includes any other data collected by
or available to any Federal agency that such
agency considers may be useful for SBIR program
evaluation; and
``(E) is available for use solely for
program evaluation purposes by the Federal
Government or, in accordance with policy
directives issued by the Administration, by
other authorized persons who are subject to a
use and nondisclosure agreement with the
Federal Government covering the use of the
database.
``(3) Updating information for database.--
``(A) In general.--A small business concern
applying for a second phase award under this
section shall be required to update information
in the database established under this
subsection for any prior second phase award
received by that small business concern. In
complying with this paragraph, a small business
concern may apportion sales or additional
investment information relating to more than
one second phase award among those awards, if
it notes the apportionment for each award.
``(B) Annual updates upon termination.--A
small business concern receiving a second phase
award under this section shall--
``(i) update information in the
database concerning that award at the
termination of the award period; and
``(ii) be requested to voluntarily
update such information annually
thereafter for a period of 5 years.
``(4) Protection of information.--Information
provided under paragraph (2) shall be considered
privileged and confidential and not subject to
disclosure pursuant to section 552 of title 5, United
States Code.
``(5) Rule of construction.--Inclusion of
information in the database under this subsection shall
not be considered to be publication for purposes of
subsection (a) or (b) of section 102 of title 35,
United States Code.''.
SEC. 108. NATIONAL RESEARCH COUNCIL REPORTS.
(a) Study and Recommendations.--The head of each agency
with a budget of more than $50,000,000 for its SBIR program for
fiscal year 1999, in consultation with the Small Business
Administration, shall, not later than 6 months after the date
of enactment of this Act, cooperatively enter into an agreement
with the National Academy of Sciences for the National Research
Council to--
(1) conduct a comprehensive study of how the SBIR
program has stimulated technological innovation and
used small businesses to meet Federal research and
development needs, including--
(A) a review of the value to the Federal
research agencies of the research projects
being conducted under the SBIR program, and of
the quality of research being conducted by
small businesses participating under the
program, including a comparison of the value of
projects conducted under the SBIR program to
those funded by other Federal research and
development expenditures;
(B) to the extent practicable, an
evaluation of the economic benefits achieved by
the SBIR program, including the economic rate
of return, and a comparison of the economic
benefits, including the economic rate of
return, achieved by the SBIR program with the
economic benefits, including the economic rate
of return, of other Federal research and
development expenditures;
(C) an evaluation of the noneconomic
benefits achieved by the SBIR program over the
life of the program;
(D) a comparison of the allocation for
fiscal year 2000 of Federal research and
development funds to small businesses with such
allocation for fiscal year 1983, and an
analysis of the factors that have contributed
to such allocation; and
(E) an analysis of whether Federal
agencies, in fulfilling their procurement
needs, are making sufficient effort to use
small businesses that have completed a second
phase award under the SBIR program; and
(2) make recommendations with respect to--
(A) measures of outcomes for strategic
plans submitted under section 306 of title 5,
United States Code, and performance plans
submitted under section 1115 of title 31,
United States Code, of each Federal agency
participating in the SBIR program;
(B) whether companies who can demonstrate
project feasibility, but who have not received
a first phase award, should be eligible for
second phase awards, and the potential impact
of such awards on the competitive selection
process of the program;
(C) whether the Federal Government should
be permitted to recoup some or all of its
expenses if a controlling interest in a company
receiving an SBIR award is sold to a foreign
company or to a company that is not a small
business concern;
(D) how to increase the use by the Federal
Government in its programs and procurements of
technology-oriented small businesses; and
(E) improvements to the SBIR program, if
any are considered appropriate.
(b) Participation by Small Business.--
(1) In general.--In a manner consistent with law
and with National Research Council study guidelines and
procedures, knowledgeable individuals from the small
business community with experience in the SBIR program
shall be included--
(A) in any panel established by the
National Research Council for the purpose of
performing the study conducted under this
section; and
(B) among those who are asked by the
National Research Council to peer review the
study.
(2) Consultation.--To ensure that the concerns of
small business are appropriately considered under this
subsection, the National Research Council shall consult
with and consider the views of the Office of Technology
and the Office of Advocacy of the Small Business
Administration and other interested parties, including
entities, organizations, and individuals actively
engaged in enhancing or developing the technological
capabilities of small business concerns.
(c) Progress Reports.--The National Research Council shall
provide semiannual progress reports on the study conducted
under this section to the Committee on Science and the
Committee on Small Business of the House of Representatives,
and to the Committee on Small Business of the Senate.
(d) Report.--The National Research Council shall transmit
to the heads of agencies entering into an agreement under this
section and to the Committee on Science and the Committee on
Small Business of the House of Representatives, and to the
Committee on Small Business of the Senate--
(1) not later than 3 years after the date of
enactment of this Act, a report including the results
of the study conducted under subsection (a)(1) and
recommendations made under subsection (a)(2); and
(2) not later than 6 years after that date of
enactment, an update of such report.
SEC. 109. FEDERAL AGENCY EXPENDITURES FOR THE SBIR PROGRAM.
Section 9(i) of the Small Business Act (15 U.S.C. 638(i))
is amended--
(1) by striking ``(i) Each Federal'' and inserting
the following:
``(i) Annual Reporting.--
``(1) In general.--Each Federal''; and
(2) by adding at the end the following:
``(2) Calculation of extramural budget.--
``(A) Methodology.--Not later than 4 months
after the date of enactment of each
appropriations Act for a Federal agency
required by this section to have an SBIR
program, the Federal agency shall submit to the
Administrator a report, which shall include a
description of the methodology used for
calculating the amount of the extramural budget
of that Federal agency.
``(B) Administrator's analysis.--The
Administrator shall include an analysis of the
methodology received from each Federal agency
referred to in subparagraph (A) in the report
required by subsection (b)(7).''.
SEC. 110. POLICY DIRECTIVE MODIFICATIONS.
Section 9(j) of the Small Business Act (15 U.S.C. 638(j))
is amended by adding at the end the following:
``(3) Additional modifications.--Not later than 120
days after the date of enactment of the Small Business
Innovation Research Program Reauthorization Act of
2000, the Administrator shall modify the policy
directives issued pursuant to this subsection--
``(A) to clarify that the rights provided
for under paragraph (2)(A) apply to all Federal
funding awards under this section, including
the first phase (as described in subsection
(e)(4)(A)), the second phase (as described in
subsection (e)(4)(B)), and the third phase (as
described in subsection (e)(4)(C));
``(B) to provide for the requirement of a
succinct commercialization plan with each
application for a second phase award that is
moving toward commercialization;
``(C) to require agencies to report to the
Administration, not less frequently than
annually, all instances in which an agency
pursued research, development, or production of
a technology developed by a small business
concern using an award made under the SBIR
program of that agency, and determined that it
was not practicable to enter into a follow-on
non-SBIR program funding agreement with the
small business concern, which report shall
include, at a minimum--
``(i) the reasons why the follow-on
funding agreement with the small
business concern was not practicable;
``(ii) the identity of the entity
with which the agency contracted to
perform the research, development, or
production; and
``(iii) a description of the type
of funding agreement under which the
research, development, or production
was obtained; and
``(D) to implement subsection (v),
including establishing standardized procedures
for the provision of information pursuant to
subsection (k)(3).''.
SEC. 111. FEDERAL AND STATE TECHNOLOGY PARTNERSHIP PROGRAM.
(a) Findings.--Congress finds that--
(1) programs to foster economic development among
small high-technology firms vary widely among the
States;
(2) States that do not aggressively support the
development of small high-technology firms, including
participation by small business concerns in the SBIR
program, are at a competitive disadvantage in
establishing a business climate that is conducive to
technology development; and
(3) building stronger national, State, and local
support for science and technology research in these
disadvantaged States will expand economic opportunities
in the United States, create jobs, and increase the
competitiveness of the United States in the world
market.
(b) Federal and State Technology Partnership Program.--The
Small Business Act (15 U.S.C. 631 et seq.) is amended--
(1) by redesignating section 34 as section 36; and
(2) by inserting after section 33 the following:
``SEC. 34. FEDERAL AND STATE TECHNOLOGY PARTNERSHIP PROGRAM.
``(a) Definitions.--In this section and section 35, the
following definitions apply:
``(1) Applicant.--The term `applicant' means an
entity, organization, or individual that submits a
proposal for an award or a cooperative agreement under
this section.
``(2) Business advice and counseling.--The term
`business advice and counseling' means providing advice
and assistance on matters described in section
35(c)(2)(B) to small business concerns to guide them
through the SBIR and STTR program process, from
application to award and successful completion of each
phase of the program.
``(3) FAST program.--The term `FAST program' means
the Federal and State Technology Partnership Program
established under this section.
``(4) Mentor.--The term `mentor' means an
individual described in section 35(c)(2).
``(5) Mentoring network.--The term `Mentoring
Network' means an association, organization, coalition,
or other entity (including an individual) that meets
the requirements of section 35(c).
``(6) Recipient.--The term `recipient' means a
person that receives an award or becomes party to a
cooperative agreement under this section.
``(7) SBIR program.--The term `SBIR program' has
the same meaning as in section 9(e)(4).
``(8) State.--The term `State' means each of the
several States, the District of Columbia, the
Commonwealth of Puerto Rico, the Virgin Islands, Guam,
and American Samoa.
``(9) STTR program.--The term `STTR program' has
the same meaning as in section 9(e)(6).
``(b) Establishment of Program.--The Administrator shall
establish a program to be known as the Federal and State
Technology Partnership Program, the purpose of which shall be
to strengthen the technological competitiveness of small
business concerns in the States.
``(c) Grants and Cooperative Agreements.--
``(1) Joint review.--In carrying out the FAST
program under this section, the Administrator and the
SBIR program managers at the National Science
Foundation and the Department of Defense shall jointly
review proposals submitted by applicants and may make
awards or enter into cooperative agreements under this
section based on the factors for consideration set
forth in paragraph (2), in order to enhance or develop
in a State--
``(A) technology research and development
by small business concerns;
``(B) technology transfer from university
research to technology-based small business
concerns;
``(C) technology deployment and diffusion
benefiting small business concerns;
``(D) the technological capabilities of
small business concerns through the
establishment or operation of consortia
comprised of entities, organizations, or
individuals, including--
``(i) State and local development
agencies and entities;
``(ii) representatives of
technology-based small business
concerns;
``(iii) industries and emerging
companies;
``(iv) universities; and
``(v) small business development
centers; and
``(E) outreach, financial support, and
technical assistance to technology-based small
business concerns participating in or
interested in participating in an SBIR program,
including initiatives--
``(i) to make grants or loans to
companies to pay a portion or all of
the cost of developing SBIR proposals;
``(ii) to establish or operate a
Mentoring Network within the FAST
program to provide business advice and
counseling that will assist small
business concerns that have been
identified by FAST program
participants, program managers of
participating SBIR agencies, the
Administration, or other entities that
are knowledgeable about the SBIR and
STTR programs as good candidates for
the SBIR and STTR programs, and that
would benefit from mentoring, in
accordance with section 35;
``(iii) to create or participate in
a training program for individuals
providing SBIR outreach and assistance
at the State and local levels; and
``(iv) to encourage the
commercialization of technology
developed through SBIR program funding.
``(2) Selection considerations.--In making awards
or entering into cooperative agreements under this
section, the Administrator and the SBIR program
managers referred to in paragraph (1)--
``(A) may only consider proposals by
applicants that intend to use a portion of the
Federal assistance provided under this section
to provide outreach, financial support, or
technical assistance to technology-based small
business concerns participating in or
interested in participating in the SBIR
program; and
``(B) shall consider, at a minimum--
``(i) whether the applicant has
demonstrated that the assistance to be
provided would address unmet needs of
small business concerns in the
community, and whether it is important
to use Federal funding for the proposed
activities;
``(ii) whether the applicant has
demonstrated that a need exists to
increase the number or success of small
high-technology businesses in the
State, as measured by the number of
first phase and second phase SBIR
awards that have historically been
received by small business concerns in
the State;
``(iii) whether the projected costs
of the proposed activities are
reasonable;
``(iv) whether the proposal
integrates and coordinates the proposed
activities with other State and local
programs assisting small high-
technology firms in the State; and
``(v) the manner in which the
applicant will measure the results of
the activities to be conducted.
``(3) Proposal limit.--Not more than 1 proposal may
be submitted for inclusion in the FAST program under
this section to provide services in any one State in
any 1 fiscal year.
``(4) Process.--Proposals and applications for
assistance under this section shall be in such form and
subject to such procedures as the Administrator shall
establish.
``(d) Cooperation and Coordination.--In carrying out the
FAST program under this section, the Administrator shall
cooperate and coordinate with--
``(1) Federal agencies required by section 9 to
have an SBIR program; and
``(2) entities, organizations, and individuals
actively engaged in enhancing or developing the
technological capabilities of small business concerns,
including--
``(A) State and local development agencies
and entities;
``(B) State committees established under
the Experimental Program to Stimulate
Competitive Research of the National Science
Foundation (as established under section 113 of
the National Science Foundation Authorization
Act of 1988 (42 U.S.C. 1862g));
``(C) State science and technology
councils; and
``(D) representatives of technology-based
small business concerns.
``(e) Administrative Requirements.--
``(1) Competitive basis.--Awards and cooperative
agreements under this section shall be made or entered
into, as applicable, on a competitive basis.
``(2) Matching requirements.--
``(A) In general.--The non-Federal share of
the cost of an activity (other than a planning
activity) carried out using an award or under a
cooperative agreement under this section shall
be--
``(i) 50 cents for each Federal
dollar, in the case of a recipient that
will serve small business concerns
located in one of the 18 States
receiving the fewest SBIR first phase
awards (as described in section
9(e)(4)(A));
``(ii) except as provided in
subparagraph (B), 1 dollar for each
Federal dollar, in the case of a
recipient that will serve small
business concerns located in one of the
16 States receiving the greatest number
of such SBIR first phase awards; and
``(iii) except as provided in
subparagraph (B), 75 cents for each
Federal dollar, in the case of a
recipient that will serve small
business concerns located in a State
that is not described in clause (i) or
(ii) that is receiving such SBIR first
phase awards.
``(B) Low-income areas.--The non-Federal
share of the cost of the activity carried out
using an award or under a cooperative agreement
under this section shall be 50 cents for each
Federal dollar that will be directly allocated
by a recipient described in subparagraph (A) to
serve small business concerns located in a
qualified census tract, as that term is defined
in section 42(d)(5)(C)(ii) of the Internal
Revenue Code of 1986. Federal dollars not so
allocated by that recipient shall be subject to
the matching requirements of subparagraph (A).
``(C) Types of funding.--The non-Federal
share of the cost of an activity carried out by
a recipient shall be comprised of not less than
50 percent cash and not more than 50 percent of
indirect costs and in-kind contributions,
except that no such costs or contributions may
be derived from funds from any other Federal
program.
``(D) Rankings.--For purposes of
subparagraph (A), the Administrator shall
reevaluate the ranking of a State once every 2
fiscal years, beginning with fiscal year 2001,
based on the most recent statistics compiled by
the Administrator.
``(3) Duration.--Awards may be made or cooperative
agreements entered into under this section for multiple
years, not to exceed 5 years in total.
``(f) Reports.--
``(1) Initial report.--Not later than 120 days
after the date of enactment of the Small Business
Innovation Research Program Reauthorization Act of
2000, the Administrator shall prepare and submit to the
Committee on Small Business of the Senate and the
Committee on Science and the Committee on Small
Business of the House of Representatives a report,
which shall include, with respect to the FAST program,
including Mentoring Networks--
``(A) a description of the structure and
procedures of the program;
``(B) a management plan for the program;
and
``(C) a description of the merit-based
review process to be used in the program.
``(2) Annual reports.--The Administrator shall
submit an annual report to the Committee on Small
Business of the Senate and the Committee on Science and
the Committee on Small Business of the House of
Representatives regarding--
``(A) the number and amount of awards
provided and cooperative agreements entered
into under the FAST program during the
preceding year;
``(B) a list of recipients under this
section, including their location and the
activities being performed with the awards made
or under the cooperative agreements entered
into; and
``(C) the Mentoring Networks and the
mentoring database, as provided for under
section 35, including--
``(i) the status of the inclusion
of mentoring information in the
database required by section 9(k); and
``(ii) the status of the
implementation and description of the
usage of the Mentoring Networks.
``(g) Reviews by Inspector General.--
``(1) In general.--The Inspector General of the
Administration shall conduct a review of--
``(A) the extent to which recipients under
the FAST program are measuring the performance
of the activities being conducted and the
results of such measurements; and
``(B) the overall management and
effectiveness of the FAST program.
``(2) Report.--During the first quarter of fiscal
year 2004, the Inspector General of the Administration
shall submit a report to the Committee on Small
Business of the Senate and the Committee on Science and
the Committee on Small Business of the House of
Representatives on the review conducted under paragraph
(1).
``(h) Program Levels.--
``(1) In general.--There is authorized to be
appropriated to carry out the FAST program, including
Mentoring Networks, under this section and section 35,
$10,000,000 for each of fiscal years 2001 through 2005.
``(2) Mentoring database.--Of the total amount made
available under paragraph (1) for fiscal years 2001
through 2005, a reasonable amount, not to exceed a
total of $500,000, may be used by the Administration to
carry out section 35(d).
``(i) Termination.--The authority to carry out the FAST
program under this section shall terminate on September 30,
2005.''.
(c) Coordination of Technology Development Programs.--
Section 9 of the Small Business Act (15 U.S.C. 638) is amended
by adding at the end the following:
``(u) Coordination of Technology Development Programs.--
``(1) Definition of technology development
program.--In this subsection, the term `technology
development program' means--
``(A) the Experimental Program to Stimulate
Competitive Research of the National Science
Foundation, as established under section 113 of
the National Science Foundation Authorization
Act of 1988 (42 U.S.C. 1862g);
``(B) the Defense Experimental Program to
Stimulate Competitive Research of the
Department of Defense;
``(C) the Experimental Program to Stimulate
Competitive Research of the Department of
Energy;
``(D) the Experimental Program to Stimulate
Competitive Research of the Environmental
Protection Agency;
``(E) the Experimental Program to Stimulate
Competitive Research of the National
Aeronautics and Space Administration;
``(F) the Institutional Development Award
Program of the National Institutes of Health;
and
``(G) the National Research Initiative
Competitive Grants Program of the Department of
Agriculture.
``(2) Coordination requirements.--Each Federal
agency that is subject to subsection (f) and that has
established a technology development program may, in
each fiscal year, review for funding under that
technology development program--
``(A) any proposal to provide outreach and
assistance to 1 or more small business concerns
interested in participating in the SBIR
program, including any proposal to make a grant
or loan to a company to pay a portion or all of
the cost of developing an SBIR proposal, from
an entity, organization, or individual located
in--
``(i) a State that is eligible to
participate in that program; or
``(ii) a State described in
paragraph (3); or
``(B) any proposal for the first phase of
the SBIR program, if the proposal, though
meritorious, is not funded through the SBIR
program for that fiscal year due to funding
restraints, from a small business concern
located in--
``(i) a State that is eligible to
participate in a technology development
program; or
``(ii) a State described in
paragraph (3).
``(3) Additionally eligible state.--A State
referred to in subparagraph (A)(ii) or (B)(ii) of
paragraph (2) is a State in which the total value of
contracts awarded to small business concerns under all
SBIR programs is less than the total value of contracts
awarded to small business concerns in a majority of
other States, as determined by the Administrator in
biennial fiscal years, beginning with fiscal year 2000,
based on the most recent statistics compiled by the
Administrator.''.
SEC. 112. MENTORING NETWORKS.
The Small Business Act (15 U.S.C. 631 et seq.) is amended
by inserting after section 34, as added by section 111(b)(2) of
this Act, the following:
``SEC. 35. MENTORING NETWORKS.
``(a) Findings.--Congress finds that--
``(1) the SBIR and STTR programs create jobs,
increase capacity for technological innovation, and
boost international competitiveness;
``(2) increasing the quantity of applications from
all States to the SBIR and STTR programs would enhance
competition for such awards and the quality of the
completed projects; and
``(3) mentoring is a natural complement to the FAST
program of reaching out to new companies regarding the
SBIR and STTR programs as an effective and low-cost way
to improve the likelihood that such companies will
succeed in such programs in developing and
commercializing their research.
``(b) Authorization for Mentoring Networks.--The recipient
of an award or participant in a cooperative agreement under
section 34 may use a reasonable amount of such assistance for
the establishment of a Mentoring Network under this section.
``(c) Criteria for Mentoring Networks.--A Mentoring Network
established using assistance under section 34 shall--
``(1) provide business advice and counseling to
high technology small business concerns located in the
State or region served by the Mentoring Network and
identified under section 34(c)(1)(E)(ii) as potential
candidates for the SBIR or STTR programs;
``(2) identify volunteer mentors who--
``(A) are persons associated with a small
business concern that has successfully
completed one or more SBIR or STTR funding
agreements; and
``(B) have agreed to guide small business
concerns through all stages of the SBIR or STTR
program process, including providing assistance
relating to--
``(i) proposal writing;
``(ii) marketing;
``(iii) Government accounting;
``(iv) Government audits;
``(v) project facilities and
equipment;
``(vi) human resources;
``(vii) third phase partners;
``(viii) commercialization;
``(ix) venture capital networking;
and
``(x) other matters relevant to the
SBIR and STTR programs;
``(3) have experience working with small business
concerns participating in the SBIR and STTR programs;
``(4) contribute information to the national
database referred to in subsection (d); and
``(5) agree to reimburse volunteer mentors for out-
of-pocket expenses related to service as a mentor under
this section.
``(d) Mentoring Database.--The Administrator shall--
``(1) include in the database required by section
9(k)(1), in cooperation with the SBIR, STTR, and FAST
programs, information on Mentoring Networks and mentors
participating under this section, including a
description of their areas of expertise;
``(2) work cooperatively with Mentoring Networks to
maintain and update the database;
``(3) take such action as may be necessary to
aggressively promote Mentoring Networks under this
section; and
``(4) fulfill the requirements of this subsection
either directly or by contract.''.
SEC. 113. SIMPLIFIED REPORTING REQUIREMENTS.
Section 9 of the Small Business Act (15 U.S.C. 638), as
amended by this Act, is further amended by adding at the end
the following:
``(v) Simplified Reporting Requirements.--The Administrator
shall work with the Federal agencies required by this section
to have an SBIR program to standardize reporting requirements
for the collection of data from SBIR applicants and awardees,
including data for inclusion in the database under subsection
(k), taking into consideration the unique needs of each agency,
and to the extent possible, permitting the updating of
previously reported information by electronic means. Such
requirements shall be designed to minimize the burden on small
businesses.''.
SEC. 114. RURAL OUTREACH PROGRAM EXTENSION.
(a) Extension of Termination Date.--Section 501(b)(2) of
the Small Business Reauthorization Act of 1997 (15 U.S.C. 638
note; 111 Stat. 2622) is amended by striking ``2001'' and
inserting ``2005''.
(b) Extension of Authorization of Appropriations.--Section
9(s)(2) of the Small Business Act (15 U.S.C. 638(s)(2)) is
amended by striking ``for fiscal year 1998, 1999, 2000, or
2001'' and inserting ``for each of the fiscal years 2000
through 2005,''.
TITLE II--BUSINESS LOAN PROGRAMS
SEC. 201. SHORT TITLE.
This title may be cited as the ``Small Business Loan
Improvement Act of 2000''.
SEC. 202. LEVELS OF PARTICIPATION.
Section 7(a)(2)(A) of the Small Business Act (15 U.S.C.
636(a)(2)(A)) is amended--
(1) in paragraph (i) by striking ``$100,000'' and
inserting ``$150,000''; and
(2) in paragraph (ii)--
(A) by striking ``80 percent'' and
inserting ``85 percent''; and
(B) by striking ``$100,000'' and inserting
``$150,000''.
SEC. 203. LOAN AMOUNTS.
Section 7(a)(3)(A) of the Small Business Act (15 U.S.C.
636(a)(3)(A)) is amended by striking ``$750,000,'' and
inserting, ``$1,000,000 (or if the gross loan amount would
exceed $2,000,000),''.
SEC. 204. INTEREST ON DEFAULTED LOANS.
Section 7(a)(4)(B) of the Small Business Act (15 U.S.C.
636(a)(4)(B)) is amended by adding at the end the following:
``(iii) Applicability.--Clauses (i)
and (ii) shall not apply to loans made
on or after October 1, 2000.''.
SEC. 205. PREPAYMENT OF LOANS.
Section 7(a)(4) of the Small Business Act (15 U.S.C.
636(a)(4)) is further amended--
(1) by striking ``(4) Interest rates and fees.--''
and inserting ``(4) Interest rates and prepayment
charges.--''; and
(2) by adding at the end the following:
``(C) Prepayment charges.--
``(i) In general.--A borrower who
prepays any loan guaranteed under this
subsection shall remit to the
Administration a subsidy recoupment fee
calculated in accordance with clause
(ii) if--
``(I) the loan is for a
term of not less than 15 years;
``(II) the prepayment is
voluntary;
``(III) the amount of
prepayment in any calendar year
is more than 25 percent of the
outstanding balance of the
loan; and
``(IV) the prepayment is
made within the first 3 years
after disbursement of the loan
proceeds.
``(ii) Subsidy recoupment fee.--The
subsidy recoupment fee charged under
clause (i) shall be--
``(I) 5 percent of the
amount of prepayment, if the
borrower prepays during the
first year after disbursement;
``(II) 3 percent of the
amount of prepayment, if the
borrower prepays during the
second year after disbursement;
and
``(III) 1 percent of the
amount of prepayment, if the
borrower prepays during the
third year after
disbursement.''.
SEC. 206. GUARANTEE FEES.
Section 7(a)(18) of the Small Business Act (15 U.S.C.
636(a)(18)) is amended to read as follows:
``(18) Guarantee fees.--
``(A) In general.--With respect to each
loan guaranteed under this subsection (other
than a loan that is repayable in 1 year or
less), the Administration shall collect a
guarantee fee, which shall be payable by the
participating lender, and may be charged to the
borrower, as follows:
``(i) A guarantee fee equal to 2
percent of the deferred participation
share of a total loan amount that is
not more than $150,000.
``(ii) A guarantee fee equal to 3
percent of the deferred participation
share of a total loan amount that is
more than $150,000, but not more than
$700,000.
``(iii) A guarantee fee equal to
3.5 percent of the deferred
participation share of a total loan
amount that is more than $700,000.
``(B) Retention of certain fees.--Lenders
participating in the programs established under
this subsection may retain not more than 25
percent of a fee collected under subparagraph
(A)(i).''.
SEC. 207. LEASE TERMS.
Section 7(a) of the Small Business Act (15 U.S.C. 636(a))
is further amended by adding at the end the following:
``(28) Leasing.--In addition to such other lease
arrangements as may be authorized by the
Administration, a borrower may permanently lease to one
or more tenants not more than 20 percent of any
property constructed with the proceeds of a loan
guaranteed under this subsection, if the borrower
permanently occupies and uses not less than 60 percent
of the total business space in the property.''.
SEC. 208. APPRAISALS FOR LOANS SECURED BY REAL PROPERTY.
(a) Small Business Act.--Section 7(a) of the Small Business
Act (15 U.S.C. 636(a)) is amended by adding at the end the
following:
``(29) Real estate appraisals.--With respect to a
loan under this subsection that is secured by
commercial real property, an appraisal of such property
by a State licensed or certified appraiser--
``(A) shall be required by the
Administration in connection with any such loan
for more than $250,000; or
``(B) may be required by the Administration
or the lender in connection with any such loan
for $250,000 or less, if such appraisal is
necessary for appropriate evaluation of
creditworthiness.''.
(b) Small Business Investment Act of 1958.--Section
502(3)(E) of the Small Business Investment Act of 1958 (15
U.S.C. 696(3)(E)) is amended--
(1) by striking ``The collateral'' and inserting
the following:
``(i) In general.--The
collateral''; and
(2) by adding at the end the following:
``(ii) Appraisals.--With respect to
commercial real property provided by
the small business concern as
collateral, an appraisal of the
property by a State licensed or
certified appraiser--
``(I) shall be required by
the Administration before
disbursement of the loan if the
estimated value of that
property is more than $250,000;
or
``(II) may be required by
the Administration or the
lender before disbursement of
the loan if the estimated value
of that property is $250,000 or
less, and such appraisal is
necessary for appropriate
evaluation of
creditworthiness.''.
SEC. 209. SALE OF GUARANTEED LOANS MADE FOR EXPORT PURPOSES.
Section 5(f)(1)(C) of the Small Business Act (15 U.S.C.
634(f)(1)(C)) is amended to read as follows:
``(C) each loan, except each loan made under
section 7(a)(14), shall have been fully disbursed to
the borrower prior to any sale.''.
SEC. 210. MICROLOAN PROGRAM.
(a) In General.--Section 7(m) of the Small Business Act (15
U.S.C. 636(m)) is amended--
(1) in paragraphs (1)(B)(iii) and (3)(E), by
striking ``$25,000'' each place it appears and
inserting ``$35,000'';
(2) in paragraphs (1)(A)(iii)(I), (3)(A)(ii), and
(4)(C)(i)(II), by striking ``$7,500'' each place it
appears and inserting ``$10,000'';
(3) in paragraph (3)(E), by striking ``$15,000''
and inserting ``$20,000'';
(4) in paragraph (5)(A)--
(A) by striking ``25 grants'' and inserting
``55 grants''; and
(B) by striking ``$125,000'' and inserting
``$200,000'';
(5) in paragraph (6)(B), by striking ``$10,000''
and inserting ``$15,000''; and
(6) in paragraph (7), by striking subparagraph (A)
and inserting the following:
``(A) Number of participants.--Under the
program authorized by this subsection, the
Administration may fund, on a competitive
basis, not more than 300 intermediaries.''.
(b) Conforming Amendments.--Section 7(m)(11)(B) of the
Small Business Act (15 U.S.C. 636(m)(11)(B)) is amended by
striking ``$25,000'' and inserting ``$35,000''.
TITLE III--CERTIFIED DEVELOPMENT COMPANY PROGRAM
SEC. 301. SHORT TITLE.
This title may be cited as the ``Certified Development
Company Program Improvements Act of 2000''.
SEC. 302. WOMEN-OWNED BUSINESSES.
Section 501(d)(3)(C) of the Small Business Investment Act
of 1958 (15 U.S.C. 695(d)(3)(C)) is amended by inserting before
the comma ``or women-owned business development''.
SEC. 303. MAXIMUM DEBENTURE SIZE.
Section 502(2) of the Small Business Investment Act of 1958
(15 U.S.C. 696(2)) is amended to read as follows:
``(2) Loans made by the Administration under this
section shall be limited to $1,000,000 for each such
identifiable small business concern, except loans
meeting the criteria specified in section 501(d)(3),
which shall be limited to $1,300,000 for each such
identifiable small business concern.''.
SEC. 304. FEES.
Section 503(f) of the Small Business Investment Act of 1958
(15 U.S.C. 697(f)) is amended to read as follows:
``(f) Effective Date.--The fees authorized by subsections
(b) and (d) shall apply to financings approved by the
Administration on or after October 1, 1996, but shall not apply
to financings approved by the Administration on or after
October 1, 2003.''.
SEC. 305. PREMIER CERTIFIED LENDERS PROGRAM.
Section 217(b) of the Small Business Administration
Reauthorization and Amendments Act of 1994 (Public Law 103-403,
15 U.S.C. 697 note) (relating to section 508 of the Small
Business Investment Act of 1958) is repealed.
SEC. 306. SALE OF CERTAIN DEFAULTED LOANS.
Section 508 of the Small Business Investment Act of 1958
(15 U.S.C. 697e) is amended--
(1) in subsection (a), by striking ``On a pilot
program basis, the'' and inserting ``The'';
(2) by redesignating subsections (d) through (i) as
subsections (e) through (j), respectively;
(3) in subsection (f) (as redesignated by paragraph
(2)), by striking ``subsection (f)'' and inserting
``subsection (g)'';
(4) in subsection (h) (as redesignated by paragraph
(2)), by striking ``subsection (f)'' and inserting
``subsection (g)''; and
(5) by inserting after subsection (c) the
following:
``(d) Sale of Certain Defaulted Loans.--
``(1) Notice.--If, upon default in repayment, the
Administration acquires a loan guaranteed under this
section and identifies such loan for inclusion in a
bulk asset sale of defaulted or repurchased loans or
other financings, it shall give prior notice thereof to
any certified development company which has a
contingent liability under this section. The notice
shall be given to the company as soon as possible after
the financing is identified, but not less than 90 days
before the date the Administration first makes any
records on such financing available for examination by
prospective purchasers prior to its offering in a
package of loans for bulk sale.
``(2) Limitations.--The Administration shall not
offer any loan described in paragraph (1) as part of a
bulk sale unless it--
``(A) provides prospective purchasers with
the opportunity to examine the Administration's
records with respect to such loan; and
``(B) provides the notice required by
paragraph (1).''.
SEC. 307. LOAN LIQUIDATION.
(a) Liquidation and Foreclosure.--Title V of the Small
Business Investment Act of 1958 (15 U.S.C. 695 et seq.) is
amended by adding at the end the following:
``SEC. 510. FORECLOSURE AND LIQUIDATION OF LOANS.
``(a) Delegation of Authority.--In accordance with this
section, the Administration shall delegate to any qualified
State or local development company (as defined in section
503(e)) that meets the eligibility requirements of subsection
(b)(1) the authority to foreclose and liquidate, or to
otherwise treat in accordance with this section, defaulted
loans in its portfolio that are funded with the proceeds of
debentures guaranteed by the Administration under section 503.
``(b) Eligibility for Delegation.--
``(1) Requirements.--A qualified State or local
development company shall be eligible for a delegation
of authority under subsection (a) if--
``(A) the company--
``(i) has participated in the loan
liquidation pilot program established
by the Small Business Programs
Improvement Act of 1996 (15 U.S.C. 695
note), as in effect on the day before
promulgation of final regulations by
the Administration implementing this
section;
``(ii) is participating in the
Premier Certified Lenders Program under
section 508; or
``(iii) during the 3 fiscal years
immediately prior to seeking such a
delegation, has made an average of not
less than 10 loans per year that are
funded with the proceeds of debentures
guaranteed under section 503; and
``(B) the company--
``(i) has one or more employees--
``(I) with not less than 2
years of substantive, decision-
making experience in
administering the liquidation
and workout of problem loans
secured in a manner
substantially similar to loans
funded with the proceeds of
debentures guaranteed under
section 503; and
``(II) who have completed a
training program on loan
liquidation developed by the
Administration in conjunction
with qualified State and local
development companies that meet
the requirements of this
paragraph; or
``(ii) submits to the
Administration documentation
demonstrating that the company has
contracted with a qualified third-party
to perform any liquidation activities
and secures the approval of the
contract by the Administration with
respect to the qualifications of the
contractor and the terms and conditions
of liquidation activities.
``(2) Confirmation.--On request the Administration
shall examine the qualifications of any company
described in subsection (a) to determine if such
company is eligible for the delegation of authority
under this section. If the Administration determines
that a company is not eligible, the Administration
shall provide the company with the reasons for such
ineligibility.
``(c) Scope of Delegated Authority.--
``(1) In general.--Each qualified State or local
development company to which the Administration
delegates authority under section (a) may with respect
to any loan described in subsection (a)--
``(A) perform all liquidation and
foreclosure functions, including the purchase
in accordance with this subsection of any other
indebtedness secured by the property securing
the loan, in a reasonable and sound manner
according to commercially accepted practices,
pursuant to a liquidation plan approved in
advance by the Administration under paragraph
(2)(A);
``(B) litigate any matter relating to the
performance of the functions described in
subparagraph (A), except that the
Administration may--
``(i) defend or bring any claim
if--
``(I) the outcome of the
litigation may adversely affect
the Administration's management
of the loan program established
under section 502; or
``(II) the Administration
is entitled to legal remedies
not available to a qualified
State or local development
company and such remedies will
benefit either the
Administration or the qualified
State or local development
company; or
``(ii) oversee the conduct of any
such litigation; and
``(C) take other appropriate actions to
mitigate loan losses in lieu of total
liquidation or foreclosures, including the
restructuring of a loan in accordance with
prudent loan servicing practices and pursuant
to a workout plan approved in advance by the
Administration under paragraph (2)(C).
``(2) Administration approval.--
``(A) Liquidation plan.--
``(i) In general.--Before carrying
out functions described in paragraph
(1)(A), a qualified State or local
development company shall submit to the
Administration a proposed liquidation
plan.
``(ii) Administration action on
plan.--
``(I) Timing.--Not later
than 15 business days after a
liquidation plan is received by
the Administration under clause
(i), the Administration shall
approve or reject the plan.
``(II) Notice of no
decision.--With respect to any
plan that cannot be approved or
denied within the 15-day period
required by subclause (I), the
Administration shall within
such period provide in
accordance with subparagraph
(E) notice to the company that
submitted the plan.
``(iii) Routine actions.--In
carrying out functions described in
paragraph (1)(A), a qualified State or
local development company may undertake
routine actions not addressed in a
liquidation plan without obtaining
additional approval from the
Administration.
``(B) Purchase of indebtedness.--
``(i) In general.--In carrying out
functions described in paragraph
(1)(A), a qualified State or local
development company shall submit to the
Administration a request for written
approval before committing the
Administration to the purchase of any
other indebtedness secured by the
property securing a defaulted loan.
``(ii) Administration action on
request.--
``(I) Timing.--Not later
than 15 business days after
receiving a request under
clause (i), the Administration
shall approve or deny the
request.
``(II) Notice of no
decision.--With respect to any
request that cannot be approved
or denied within the 15-day
period required by subclause
(I), the Administration shall
within such period provide in
accordance with subparagraph
(E) notice to the company that
submitted the request.
``(C) Workout plan.--
``(i) In general.--In carrying out
functions described in paragraph
(1)(C), a qualified State or local
development company shall submit to the
Administration a proposed workout plan.
``(ii) Administration action on
plan.--
``(I) Timing.--Not later
than 15 business days after a
workout plan is received by the
Administration under clause
(i), the Administration shall
approve or reject the plan.
``(II) Notice of no
decision.--With respect to any
workout plan that cannot be
approved or denied within the
15-day period required by
subclause (I), the
Administration shall within
such period provide in
accordance with subparagraph
(E) notice to the company that
submitted the plan.
``(D) Compromise of indebtedness.--In
carrying out functions described in paragraph
(1)(A), a qualified State or local development
company may--
``(i) consider an offer made by an
obligor to compromise the debt for less
than the full amount owing; and
``(ii) pursuant to such an offer,
release any obligor or other party
contingently liable, if the company
secures the written approval of the
Administration.
``(E) Contents of notice of no decision.--
Any notice provided by the Administration under
subparagraph (A)(ii)(II), (B)(ii)(II), or
(C)(ii)(II)--
``(i) shall be in writing;
``(ii) shall state the specific
reason for the Administration's
inability to act on a plan or request;
``(iii) shall include an estimate
of the additional time required by the
Administration to act on the plan or
request; and
``(iv) if the Administration cannot
act because insufficient information or
documentation was provided by the
company submitting the plan or request,
shall specify the nature of such
additional information or
documentation.
``(3) Conflict of interest.--In carrying out
functions described in paragraph (1), a qualified State
or local development company shall take no action that
would result in an actual or apparent conflict of
interest between the company (or any employee of the
company) and any third party lender, associate of a
third party lender, or any other person participating
in a liquidation, foreclosure, or loss mitigation
action.
``(d) Suspension or Revocation of Authority.--The
Administration may revoke or suspend a delegation of authority
under this section to any qualified State or local development
company, if the Administration determines that the company--
``(1) does not meet the requirements of subsection
(b)(1);
``(2) has violated any applicable rule or
regulation of the Administration or any other
applicable law; or
``(3) fails to comply with any reporting
requirement that may be established by the
Administration relating to carrying out of functions
described in paragraph (1).
``(e) Report.--
``(1) In general.--Based on information provided by
qualified State and local development companies and the
Administration, the Administration shall annually
submit to the Committees on Small Business of the House
of Representatives and of the Senate a report on the
results of delegation of authority under this section.
``(2) Contents.--Each report submitted under
paragraph (1) shall include the following information:
``(A) With respect to each loan foreclosed
or liquidated by a qualified State or local
development company under this section, or for
which losses were otherwise mitigated by the
company pursuant to a workout plan under this
section--
``(i) the total cost of the project
financed with the loan;
``(ii) the total original dollar
amount guaranteed by the
Administration;
``(iii) the total dollar amount of
the loan at the time of liquidation,
foreclosure, or mitigation of loss;
``(iv) the total dollar losses
resulting from the liquidation,
foreclosure, or mitigation of loss; and
``(v) the total recoveries
resulting from the liquidation,
foreclosure, or mitigation of loss,
both as a percentage of the amount
guaranteed and the total cost of the
project financed.
``(B) With respect to each qualified State
or local development company to which authority
is delegated under this section, the totals of
each of the amounts described in clauses (i)
through (v) of subparagraph (A).
``(C) With respect to all loans subject to
foreclosure, liquidation, or mitigation under
this section, the totals of each of the amounts
described in clauses (i) through (v) of
subparagraph (A).
``(D) A comparison between--
``(i) the information provided
under subparagraph (C) with respect to
the 12-month period preceding the date
on which the report is submitted; and
``(ii) the same information with
respect to loans foreclosed and
liquidated, or otherwise treated, by
the Administration during the same
period.
``(E) The number of times that the
Administration has failed to approve or reject
a liquidation plan in accordance with
subparagraph (A)(i), a workout plan in
accordance with subparagraph (C)(i), or to
approve or deny a request for purchase of
indebtedness under subparagraph (B)(i),
including specific information regarding the
reasons for the Administration's failure and
any delays that resulted.''.
(b) Regulations.--
(1) In general.--Not later than 150 days after the
date of enactment of this Act, the Administrator shall
issue such regulations as may be necessary to carry out
section 510 of the Small Business Investment Act of
1958, as added by subsection (a) of this section.
(2) Termination of pilot program.--Beginning on the
date on which final regulations are issued under
paragraph (1), section 204 of the Small Business
Programs Improvement Act of 1996 (15 U.S.C. 695 note)
shall cease to have effect.
TITLE IV--CORRECTIONS TO THE SMALL BUSINESS INVESTMENT ACT OF 1958
SEC. 401. SHORT TITLE.
This title may be cited as the ``Small Business Investment
Corrections Act of 2000''.
SEC. 402. DEFINITIONS.
(a) Small Business Concern.--Section 103(5)(A)(i) of the
Small Business Investment Act of 1958 (15 U.S.C. 662(5)(A)(i))
is amended by inserting before the semicolon at the end the
following: ``regardless of the allocation of control during the
investment period under any investment agreement between the
business concern and the entity making the investment''.
(b) Long Term.--Section 103 of the Small Business
Investment Act of 1958 (15 U.S.C. 662) is amended--
(1) in paragraph (15), by striking ``and'' at the
end;
(2) in paragraph (16), by striking the period at
the end and inserting ``; and''; and
(3) by adding at the end the following:
``(17) the term `long term', when used in
connection with equity capital or loan funds invested
in any small business concern or smaller enterprise,
means any period of time not less than 1 year.''.
SEC. 403. INVESTMENT IN SMALL BUSINESS INVESTMENT COMPANIES.
Section 302(b) of the Small Business Investment Act of 1958
(15 U.S.C. 682(b)) is amended--
(1) by striking ``(b) Notwithstanding'' and
inserting the following:
``(b) Financial Institution Investments.--
``(1) Certain banks.--Notwithstanding''; and
(2) by adding at the end the following:
``(2) Certain savings associations.--
Notwithstanding any other provision of law, any Federal
savings association may invest in any 1 or more small
business investment companies, or in any entity
established to invest solely in small business
investment companies, except that in no event may the
total amount of such investments by any such Federal
savings association exceed 5 percent of the capital and
surplus of the Federal savings association.''.
SEC. 404. SUBSIDY FEES.
(a) Debentures.--Section 303(b) of the Small Business
Investment Act of 1958 (15 U.S.C. 683(b)) is amended by
striking ``plus an additional charge of 1 percent per annum
which shall be paid to and retained by the Administration'' and
inserting ``plus, for debentures obligated after September 30,
2000, an additional charge, in an amount established annually
by the Administration, of not more than 1 percent per year as
necessary to reduce to zero the cost (as defined in section 502
of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) to
the Administration of purchasing and guaranteeing debentures
under this Act, which shall be paid to and retained by the
Administration''.
(b) Participating Securities.--Section 303(g)(2) of the
Small Business Investment Act of 1958 (15 U.S.C. 683(g)(2)) is
amended by striking ``plus an additional charge of 1 percent
per annum which shall be paid to and retained by the
Administration'' and inserting ``plus, for participating
securities obligated after September 30, 2000, an additional
charge, in an amount established annually by the
Administration, of not more than 1 percent per year as
necessary to reduce to zero the cost (as defined in section 502
of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) to
the Administration of purchasing and guaranteeing participating
securities under this Act, which shall be paid to and retained
by the Administration''.
SEC. 405. DISTRIBUTIONS.
Section 303(g)(8) of the Small Business Investment Act of
1958 (15 U.S.C. 683(g)(8)) is amended--
(1) by striking ``subchapter s corporation'' and
inserting ``subchapter S corporation'';
(2) by striking ``the end of any calendar quarter
based on a quarterly'' and inserting ``any time during
any calendar quarter based on an''; and
(3) by striking ``quarterly distributions for a
calendar year,'' and inserting ``interim distributions
for a calendar year,''.
SEC. 406. CONFORMING AMENDMENT.
Section 310(c)(4) of the Small Business Investment Act of
1958 (15 U.S.C. 687b(c)(4)) is amended by striking ``five
years'' and inserting ``1 year''.
TITLE V--REAUTHORIZATION OF SMALL BUSINESS PROGRAMS
SEC. 501. SHORT TITLE.
This title may be cited as the ``Small Business Programs
Reauthorization Act of 2000''.
SEC. 502. REAUTHORIZATION OF SMALL BUSINESS PROGRAMS.
Section 20 of the Small Business Act (15 U.S.C. 631 note)
is amended by adding at the end the following:
``(g) Fiscal Year 2001.--
``(1) Program levels.--The following program levels
are authorized for fiscal year 2001:
``(A) For the programs authorized by this
Act, the Administration is authorized to make--
``(i) $45,000,000 in technical
assistance grants as provided in
section 7(m); and
``(ii) $60,000,000 in direct loans,
as provided in 7(m).
``(B) For the programs authorized by this
Act, the Administration is authorized to make
$19,050,000,000 in deferred participation loans
and other financings. Of such sum, the
Administration is authorized to make--
``(i) $14,500,000,000 in general
business loans as provided in section
7(a);
``(ii) $4,000,000,000 in financings
as provided in section 7(a)(13) of this
Act and section 504 of the Small
Business Investment Act of 1958;
``(iii) $500,000,000 in loans as
provided in section 7(a)(21); and
``(iv) $50,000,000 in loans as
provided in section 7(m).
``(C) For the programs authorized by title
III of the Small Business Investment Act of
1958, the Administration is authorized to
make--
``(i) $2,500,000,000 in purchases
of participating securities; and
``(ii) $1,500,000,000 in guarantees
of debentures.
``(D) For the programs authorized by part B
of title IV of the Small Business Investment
Act of 1958, the Administration is authorized
to enter into guarantees not to exceed
$4,000,000,000 of which not more than 50
percent may be in bonds approved pursuant to
section 411(a)(3) of that Act.
``(E) The Administration is authorized to
make grants or enter cooperative agreements for
a total amount of $5,000,000 for the Service
Corps of Retired Executives program authorized
by section 8(b)(1).
``(2) Additional authorizations.--
``(A) There are authorized to be
appropriated to the Administration for fiscal
year 2001 such sums as may be necessary to
carry out the provisions of this Act not
elsewhere provided for, including
administrative expenses and necessary loan
capital for disaster loans pursuant to section
7(b), and to carry out title IV of the Small
Business Investment Act of 1958, including
salaries and expenses of the Administration.
``(B) Notwithstanding any other provision
of this paragraph, for fiscal year 2001--
``(i) no funds are authorized to be
used as loan capital for the loan
program authorized by section 7(a)(21)
except by transfer from another Federal
department or agency to the
Administration, unless the program
level authorized for general business
loans under paragraph (1)(B)(i) is
fully funded; and
``(ii) the Administration may not
approve loans on its own behalf or on
behalf of any other Federal department
or agency, by contract or otherwise,
under terms and conditions other than
those specifically authorized under
this Act or the Small Business
Investment Act of 1958, except that it
may approve loans under section
7(a)(21) of this Act in gross amounts
of not more than $1,250,000.
``(h) Fiscal Year 2002.--
``(1) Program levels.--The following program levels
are authorized for fiscal year 2002:
``(A) For the programs authorized by this
Act, the Administration is authorized to make--
``(i) $60,000,000 in technical
assistance grants as provided in
section 7(m); and
``(ii) $80,000,000 in direct loans,
as provided in 7(m).
``(B) For the programs authorized by this
Act, the Administration is authorized to make
$20,050,000,000 in deferred participation loans
and other financings. Of such sum, the
Administration is authorized to make--
``(i) $15,000,000,000 in general
business loans as provided in section
7(a);
``(ii) $4,500,000,000 in financings
as provided in section 7(a)(13) of this
Act and section 504 of the Small
Business Investment Act of 1958;
``(iii) $500,000,000 in loans as
provided in section 7(a)(21); and
``(iv) $50,000,000 in loans as
provided in section 7(m).
``(C) For the programs authorized by title
III of the Small Business Investment Act of
1958, the Administration is authorized to
make--
``(i) $3,500,000,000 in purchases
of participating securities; and
``(ii) $2,500,000,000 in guarantees
of debentures.
``(D) For the programs authorized by part B
of title IV of the Small Business Investment
Act of 1958, the Administration is authorized
to enter into guarantees not to exceed
$5,000,000,000 of which not more than 50
percent may be in bonds approved pursuant to
section 411(a)(3) of that Act.
``(E) The Administration is authorized to
make grants or enter cooperative agreements for
a total amount of $6,000,000 for the Service
Corps of Retired Executives program authorized
by section 8(b)(1).
``(2) Additional authorizations.--
``(A) There are authorized to be
appropriated to the Administration for fiscal
year 2002 such sums as may be necessary to
carry out the provisions of this Act not
elsewhere provided for, including
administrative expenses and necessary loan
capital for disaster loans pursuant to section
7(b), and to carry out title IV of the Small
Business Investment Act of 1958, including
salaries and expenses of the Administration.
``(B) Notwithstanding any other provision
of this paragraph, for fiscal year 2002--
``(i) no funds are authorized to be
used as loan capital for the loan
program authorized by section 7(a)(21)
except by transfer from another Federal
department or agency to the
Administration, unless the program
level authorized for general business
loans under paragraph (1)(B)(i) is
fully funded; and
``(ii) the Administration may not
approve loans on its own behalf or on
behalf of any other Federal department
or agency, by contract or otherwise,
under terms and conditions other than
those specifically authorized under
this Act or the Small Business
Investment Act of 1958, except that it
may approve loans under section
7(a)(21) of this Act in gross amounts
of not more than $1,250,000.
``(i) Fiscal Year 2003.--
``(1) Program levels.--The following program levels
are authorized for fiscal year 2003:
``(A) For the programs authorized by this
Act, the Administration is authorized to make--
``(i) $70,000,000 in technical
assistance grants as provided in
section 7(m); and
``(ii) $100,000,000 in direct
loans, as provided in 7(m).
``(B) For the programs authorized by this
Act, the Administration is authorized to make
$21,550,000,000 in deferred participation loans
and other financings. Of such sum, the
Administration is authorized to make--
``(i) $16,000,000,000 in general
business loans as provided in section
7(a);
``(ii) $5,000,000,000 in financings
as provided in section 7(a)(13) of this
Act and section 504 of the Small
Business Investment Act of 1958;
``(iii) $500,000,000 in loans as
provided in section 7(a)(21); and
``(iv) $50,000,000 in loans as
provided in section 7(m).
``(C) For the programs authorized by title
III of the Small Business Investment Act of
1958, the Administration is authorized to
make--
``(i) $4,000,000,000 in purchases
of participating securities; and
``(ii) $3,000,000,000 in guarantees
of debentures.
``(D) For the programs authorized by part B
of title IV of the Small Business Investment
Act of 1958, the Administration is authorized
to enter into guarantees not to exceed
$6,000,000,000 of which not more than 50
percent may be in bonds approved pursuant to
section 411(a)(3) of that Act.
``(E) The Administration is authorized to
make grants or enter into cooperative
agreements for a total amount of $7,000,000 for
the Service Corps of Retired Executives program
authorized by section 8(b)(1).
``(2) Additional authorizations.--
``(A) There are authorized to be
appropriated to the Administration for fiscal
year 2003 such sums as may be necessary to
carry out the provisions of this Act not
elsewhere provided for, including
administrative expenses and necessary loan
capital for disaster loans pursuant to section
7(b), and to carry out title IV of the Small
Business Investment Act of 1958, including
salaries and expenses of the Administration.
``(B) Notwithstanding any other provision
of this paragraph, for fiscal year 2003--
``(i) no funds are authorized to be
used as loan capital for the loan
program authorized by section 7(a)(21)
except by transfer from another Federal
department or agency to the
Administration, unless the program
level authorized for general business
loans under paragraph (1)(B)(i) is
fully funded; and
``(ii) the Administration may not
approve loans on its own behalf or on
behalf of any other Federal department
or agency, by contract or otherwise,
under terms and conditions other than
those specifically authorized under
this Act or the Small Business
Investment Act of 1958, except that it
may approve loans under section
7(a)(21) of this Act in gross amounts
of not more than $1,250,000.''.
SEC. 503. ADDITIONAL REAUTHORIZATIONS.
(a) Drug-Free Workplace Program.--Section 27 of the Small
Business Act (15 U.S.C. 654) is amended--
(1) in the section heading, by striking ``DRUG-FREE
WORKPLACE DEMONSTRATION PROGRAM'' and inserting ``PAUL
D. COVERDELL DRUG-FREE WORKPLACE PROGRAM''; and
(2) in subsection (g)(1), by striking ``$10,000,000
for fiscal years 1999 and 2000'' and inserting
``$5,000,000 for each of fiscal years 2001 through
2003''.
(b) HUBZone Program.--Section 31 of the Small Business Act
(15 U.S.C. 657a) is amended by adding at the end the following:
``(d) Authorization of Appropriations.--There is authorized
to be appropriated to carry out the program established by this
section $10,000,000 for each of fiscal years 2001 through
2003.''.
(c) Very Small Business Concerns Program.--Section 304(i)
of the Small Business Administration Reauthorization and
Amendments Act of 1994 (Public Law 103-403; 15 U.S.C. 644 note)
is amended by striking ``September 30, 2000'' and inserting
``September 30, 2003''.
(d) Socially and Economically Disadvantaged Businesses
Program.--Section 7102(c) of the Federal Acquisition
Streamlining Act of 1994 (Public Law 103-355; 15 U.S.C. 644
note) is amended by striking ``September 30, 2000'' and
inserting ``September 30, 2003''.
(e) SBDC Services.--Section 21(c)(3)(T) of the Small
Business Act (15 U.S.C. 648(c)(3)(T)) is amended by striking
``2000'' and inserting ``2003''.
SEC. 504. COSPONSORSHIP.
(a) In General.--Section 8(b)(1)(A) of the Small Business
Act (15 U.S.C. 637(b)(1)(A)) is amended to read as follows:
``(1)(A) to provide--
``(i) technical, managerial, and
informational aids to small business concerns--
``(I) by advising and counseling on
matters in connection with Government
procurement and policies, principles,
and practices of good management;
``(II) by cooperating and advising
with--
``(aa) voluntary business,
professional, educational, and
other nonprofit organizations,
associations, and institutions
(except that the Administration
shall take such actions as it
determines necessary to ensure
that such cooperation does not
constitute or imply an
endorsement by the
Administration of the
organization or its products or
services, and shall ensure that
it receives appropriate
recognition in all printed
materials); and
``(bb) other Federal and
State agencies;
``(III) by maintaining a
clearinghouse for information on
managing, financing, and operating
small business enterprises; and
``(IV) by disseminating such
information, including through
recognition events, and by other
activities that the Administration
determines to be appropriate; and
``(ii) through cooperation with a profit-
making concern (referred to in this paragraph
as a `cosponsor'), training, information, and
education to small business concerns, except
that the Administration shall--
``(I) take such actions as it
determines to be appropriate to ensure
that--
``(aa) the Administration
receives appropriate
recognition and publicity;
``(bb) the cooperation does
not constitute or imply an
endorsement by the
Administration of any product
or service of the cosponsor;
``(cc) unnecessary
promotion of the products or
services of the cosponsor is
avoided; and
``(dd) utilization of any 1
cosponsor in a marketing area
is minimized; and
``(II) develop an agreement,
executed on behalf of the
Administration by an employee of the
Administration in Washington, the
District of Columbia, that provides, at
a minimum, that--
``(aa) any printed material
to announce the cosponsorship
or to be distributed at the
cosponsored activity, shall be
approved in advance by the
Administration;
``(bb) the terms and
conditions of the cooperation
shall be specified;
``(cc) only minimal charges
may be imposed on any small
business concern to cover the
direct costs of providing the
assistance;
``(dd) the Administration
may provide to the
cosponsorship mailing labels,
but not lists of names and
addresses of small business
concerns compiled by the
Administration;
``(ee) all printed
materials containing the names
of both the Administration and
the cosponsor shall include a
prominent disclaimer that the
cooperation does not constitute
or imply an endorsement by the
Administration of any product
or service of the cosponsor;
and
``(ff) the Administration
shall ensure that it receives
appropriate recognition in all
cosponsorship printed
materials.''.
(b) Extension of Cosponsorship Authority.--Section
401(a)(2) of the Small Business Administration Reauthorization
and Amendments Act of 1994 (15 U.S.C. 637 note) is amended by
striking ``September 30, 2000'' and inserting ``September 30,
2003''.
TITLE VI--HUBZONE PROGRAM
Subtitle A--HUBZones in Native America
SEC. 601. SHORT TITLE.
This subtitle may be cited as the ``HUBZones in Native
America Act of 2000''.
SEC. 602. HUBZONE SMALL BUSINESS CONCERN.
Section 3(p)(3) of the Small Business Act (15 U.S.C.
632(p)(3)) is amended to read as follows:
``(3) Hubzone small business concern.--The term
`HUBZone small business concern' means--
``(A) a small business concern that is
owned and controlled by 1 or more persons, each
of whom is a United States citizen;
``(B) a small business concern that is--
``(i) an Alaska Native Corporation
owned and controlled by Natives (as
determined pursuant to section 29(e)(1)
of the Alaska Native Claims Settlement
Act (43 U.S.C. 1626(e)(1))); or
``(ii) a direct or indirect
subsidiary corporation, joint venture,
or partnership of an Alaska Native
Corporation qualifying pursuant to
section 29(e)(1) of the Alaska Native
Claims Settlement Act (43 U.S.C.
1626(e)(1)), if that subsidiary, joint
venture, or partnership is owned and
controlled by Natives (as determined
pursuant to section 29(e)(2)) of the
Alaska Native Claims Settlement Act (43
U.S.C. 1626(e)(2))); or
``(C) a small business concern--
``(i) that is wholly owned by 1 or
more Indian tribal governments, or by a
corporation that is wholly owned by 1
or more Indian tribal governments; or
``(ii) that is owned in part by 1
or more Indian tribal governments, or
by a corporation that is wholly owned
by 1 or more Indian tribal governments,
if all other owners are either United
States citizens or small business
concerns.''.
SEC. 603. QUALIFIED HUBZONE SMALL BUSINESS CONCERN.
(a) In General.--Section 3(p)(5)(A)(i) of the Small
Business Act (15 U.S.C. 632(p)(5)(A)(i)) is amended by striking
subclauses (I) and (II) and inserting the following:
``(I) it is a HUBZone small
business concern--
``(aa) pursuant to
subparagraph (A) or (B)
of paragraph (3), and
that its principal
office is located in a
HUBZone and not fewer
than 35 percent of its
employees reside in a
HUBZone; or
``(bb) pursuant to
paragraph (3)(C), and
not fewer than 35
percent of its
employees engaged in
performing a contract
awarded to the small
business concern on the
basis of a preference
provided under section
31(b) reside within any
Indian reservation
governed by 1 or more
of the tribal
government owners, or
reside within any
HUBZone adjoining any
such Indian
reservation;
``(II) the small business
concern will attempt to
maintain the applicable
employment percentage under
subclause (I) during the
performance of any contract
awarded to the small business
concern on the basis of a
preference provided under
section 31(b); and''.
(b) Clarifying Amendment.--Section 3(p)(5)(D)(i) of the
Small Business Act (15 U.S.C. 632(p)(5)(D)(i)) is amended by
inserting ``once the Administrator has made the certification
required by subparagraph (A)(i) regarding a qualified HUBZone
small business concern and has determined that subparagraph
(A)(ii) does not apply to that concern,'' before ``include''.
SEC. 604. OTHER DEFINITIONS.
Section 3(p) of the Small Business Act (15 U.S.C. 632(p))
is amended by adding at the end the following:
``(6) Native american small business concerns.--
``(A) Alaska native corporation.--The term
`Alaska Native Corporation' has the same
meaning as the term `Native Corporation' in
section 3 of the Alaska Native Claims
Settlement Act (43 U.S.C. 1602).
``(B) Alaska native village.--The term
`Alaska Native Village' has the same meaning as
the term `Native village' in section 3 of the
Alaska Native Claims Settlement Act (43 U.S.C.
1602).
``(C) Indian reservation.--The term `Indian
reservation'--
``(i) has the same meaning as the
term `Indian country' in section 1151
of title 18, United States Code, except
that such term does not include--
``(I) any lands that are
located within a State in which
a tribe did not exercise
governmental jurisdiction on
the date of enactment of this
paragraph, unless that tribe is
recognized after that date of
enactment by either an Act of
Congress or pursuant to
regulations of the Secretary of
the Interior for the
administrative recognition that
an Indian group exists as an
Indian tribe (part 83 of title
25, Code of Federal
Regulations); and
``(II) lands taken into
trust or acquired by an Indian
tribe after the date of
enactment of this paragraph if
such lands are not located
within the external boundaries
of an Indian reservation or
former reservation or are not
contiguous to the lands held in
trust or restricted status on
that date of enactment; and
``(ii) in the State of Oklahoma,
means lands that--
``(I) are within the
jurisdictional areas of an
Oklahoma Indian tribe (as
determined by the Secretary of
the Interior); and
``(II) are recognized by
the Secretary of the Interior
as eligible for trust land
status under part 151 of title
25, Code of Federal Regulations
(as in effect on the date of
enactment of this
paragraph).''.
Subtitle B--Other HUBZone Provisions
SEC. 611. DEFINITIONS.
(a) Qualified Census Tract.--Section 3(p)(4)(A) of the
Small Business Act (15 U.S.C. 632(p)(4)(A)) is amended by
striking ``(I)''.
(b) Qualified Nonmetropolitan County.--Section 3(p)(4) of
the Small Business Act (15 U.S.C. 632(p)(4)) is amended by
striking subparagraph (B) and inserting the following:
``(B) Qualified nonmetropolitan county.--
The term `qualified nonmetropolitan county'
means any county--
``(i) that was not located in a
metropolitan statistical area (as
defined in section 143(k)(2)(B) of the
Internal Revenue Code of 1986) at the
time of the most recent census taken
for purposes of selecting qualified
census tracts under section
42(d)(5)(C)(ii) of the Internal Revenue
Code of 1986; and
``(ii) in which--
``(I) the median household
income is less than 80 percent
of the nonmetropolitan State
median household income, based
on the most recent data
available from the Bureau of
the Census of the Department of
Commerce; or
``(II) the unemployment
rate is not less than 140
percent of the Statewide
average unemployment rate for
the State in which the county
is located, based on the most
recent data available from the
Secretary of Labor.''.
SEC. 612. ELIGIBLE CONTRACTS.
(a) Commodities Contracts.--Section 31(b)(3) of the Small
Business Act (15 U.S.C. 657a(b)(3)) is amended--
(1) by striking ``In any'' and inserting the
following:
``(A) In general.--Subject to subparagraph
(B), in any''; and
(2) by adding at the end the following:
``(B) Procurement of commodities.--For
purchases by the Secretary of Agriculture of
agricultural commodities, the price evaluation
preference shall be--
``(i) 10 percent, for the portion
of a contract to be awarded that is not
greater than 25 percent of the total
volume being procured for each
commodity in a single invitation;
``(ii) 5 percent, for the portion
of a contract to be awarded that is
greater than 25 percent, but not
greater than 40 percent, of the total
volume being procured for each
commodity in a single invitation; and
``(iii) zero, for the portion of a
contract to be awarded that is greater
than 40 percent of the total volume
being procured for each commodity in a
single invitation.
``(C) Treatment of preference.--A contract
awarded to a HUBZone small business concern
under a preference described in subparagraph
(B) shall not be counted toward the fulfillment
of any requirement partially set aside for
competition restricted to small business
concerns.''.
(b) Definitions.--Section 3(p) of the Small Business Act
(15 U.S.C. 632(p)), as amended by this Act, is amended--
(1) in paragraph (5)(A)(i)(III)--
(A) in item (aa), by striking ``and'' at
the end; and
(B) by adding at the end the following:
``(cc) in the case
of a contract for the
procurement by the
Secretary of
Agriculture of
agricultural
commodities, none of
the commodity being
procured will be
obtained by the prime
contractor through a
subcontract for the
purchase of the
commodity in
substantially the final
form in which it is to
be supplied to the
Government; and''; and
(2) by adding at the end the following:
``(7) Agricultural commodity.--The term
`agricultural commodity' has the same meaning as in
section 102 of the Agricultural Trade Act of 1978 (7
U.S.C. 5602).''.
SEC. 613. HUBZONE REDESIGNATED AREAS.
Section 3(p) of the Small Business Act (15 U.S.C. 632(p))
is amended--
(1) in paragraph (1)--
(A) in subparagraph (B), by striking ``or''
at the end;
(B) in subparagraph (C), by striking the
period at the end and inserting ``; or''; and
(C) by adding at the end the following:
``(D) redesignated areas.''; and
(2) in paragraph (4), by adding at the end the
following:
``(C) Redesignated area.--The term
`redesignated area' means any census tract that
ceases to be qualified under subparagraph (A)
and any nonmetropolitan county that ceases to
be qualified under subparagraph (B), except
that a census tract or a nonmetropolitan county
may be a `redesignated area' only for the 3-
year period following the date on which the
census tract or nonmetropolitan county ceased
to be so qualified.''.
SEC. 614. COMMUNITY DEVELOPMENT.
Section 3(p) of the Small Business Act (15 U.S.C. 632(p)),
as amended by this Act, is amended--
(1) in paragraph (3)--
(A) in subparagraph (B), by striking ``or''
at the end;
(B) in subparagraph (C), by striking the
period at the end and inserting ``; or''; and
(C) by adding at the end the following:
``(D) a small business concern that is--
``(i) wholly owned by a community
development corporation that has
received financial assistance under
Part 1 of Subchapter A of the Community
Economic Development Act of 1981 (42
U.S.C. 9805 et seq.); or
``(ii) owned in part by 1 or more
community development corporations, if
all other owners are either United
States citizens or small business
concerns.''; and
(2) in paragraph (5)(A)(i)(I)(aa), by striking
``subparagraph (A) or (B)'' and inserting
``subparagraph (A), (B), or (D)''.
SEC. 615. REFERENCE CORRECTIONS.
(a) Section 3.--Section 3(p)(5)(C) of the Small Business
Act (15 U.S.C. 632(p)(5)(C)) is amended by striking ``subclause
(IV) and (V) of subparagraph (A)(i)'' and inserting ``items
(aa) and (bb) of subparagraph (A)(i)(III)''.
(b) Section 8.--Section 8(d)(4)(D) of the Small Business
Act (15 U.S.C. 637(d)(4)(D)) is amended by inserting
``qualified HUBZone small business concerns,'' after ``small
business concerns,''.
TITLE VII--NATIONAL WOMEN'S BUSINESS COUNCIL REAUTHORIZATION
SEC. 701. SHORT TITLE.
This title may be cited as the ``National Women's Business
Council Reauthorization Act of 2000''.
SEC. 702. MEMBERSHIP OF THE COUNCIL.
Section 407 of the Women's Business Ownership Act of 1988
(15 U.S.C. 631 note) is amended--
(1) in subsection (a), by striking ``Not later''
and all that follows through ``the President'' and
inserting ``The President'';
(2) in subsection (b)--
(A) by striking ``Not later'' and all that
follows through ``the Administrator'' and
inserting ``The Administrator''; and
(B) by striking ``the Assistant
Administrator of the Office of Women's Business
Ownership and'';
(3) in subsection (d), by striking ``, except
that'' and all that follows through the end of the
subsection and inserting a period; and
(4) in subsection (h), by striking ``Not later''
and all that follows through ``the Administrator'' and
inserting ``The Administrator''.
SEC. 703. REPEAL OF PROCUREMENT PROJECT.
Section 409 of the Women's Business Ownership Act of 1988
(15 U.S.C. 631 note) is repealed.
SEC. 704. STUDIES AND OTHER RESEARCH.
Section 410 of the Women's Business Ownership Act of 1988
(15 U.S.C. 631 note) is amended to read as follows:
``SEC. 409. STUDIES AND OTHER RESEARCH.
``(a) In General.--The Council may conduct such studies and
other research relating to the award of Federal prime contracts
and subcontracts to women-owned businesses, to access to credit
and investment capital by women entrepreneurs, or to other
issues relating to women-owned businesses, as the Council
determines to be appropriate.
``(b) Contract Authority.--In conducting any study or other
research under this section, the Council may contract with 1 or
more public or private entities.''.
SEC. 705. AUTHORIZATION OF APPROPRIATIONS.
Section 411 of the Women's Business Ownership Act of 1988
(15 U.S.C. 631 note) is amended to read as follows:
``SEC. 410. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There is authorized to be appropriated
to carry out this title $1,000,000, for each of fiscal years
2001 through 2003, of which $550,000 shall be available in each
such fiscal year to carry out section 409.
``(b) Budget Review.--No amount made available under this
section for any fiscal year may be obligated or expended by the
Council before the date on which the Council reviews and
approves the operating budget of the Council to carry out the
responsibilities of the Council for that fiscal year.''.
TITLE VIII--MISCELLANEOUS PROVISIONS
SEC. 801. LOAN APPLICATION PROCESSING.
(a) Study.--The Administrator of the Small Business
Administration shall conduct a study to determine the average
time that the Administration requires to process an application
for each type of loan or loan guarantee made under the Small
Business Act (15 U.S.C. 631 et seq.).
(b) Transmittal.--Not later than 1 year after the date of
enactment of this Act, the Administrator shall transmit to
Congress the results of the study conducted under subsection
(a).
SEC. 802. APPLICATION OF OWNERSHIP REQUIREMENTS.
(a) Small Business Act.--Section 7(a) of the Small Business
Act (15 U.S.C. 636(a)) is amended by adding at the end the
following:
``(30) Ownership requirements.--Ownership
requirements to determine the eligibility of a small
business concern that applies for assistance under any
credit program under this Act shall be determined
without regard to any ownership interest of a spouse
arising solely from the application of the community
property laws of a State for purposes of determining
marital interests.''.
(b) Small Business Investment Act of 1958.--Section 502 of
the Small Business Investment Act of 1958 (15 U.S.C. 696) is
amended by adding at the end the following:
``(6) Ownership requirements.--Ownership
requirements to determine the eligibility of a small
business concern that applies for assistance under any
credit program under this title shall be determined
without regard to any ownership interest of a spouse
arising solely from the application of the community
property laws of a State for purposes of determining
marital interests.''.
SEC. 803. SUBCONTRACTING PREFERENCE FOR VETERANS.
Section 8(d) of the Small Business Act (15 U.S.C. 637(d))
is amended--
(1) in paragraph (1), by inserting ``small business
concerns owned and controlled by veterans,'' after
``small business concerns,'' the first place that term
appears in each of the first and second sentences;
(2) in paragraph (3)--
(A) in subparagraph (A), by inserting
``small business concerns owned and controlled
by service-disabled veterans,'' after ``small
business concerns owned and controlled by
veterans,'' in each of the first and second
sentences; and
(B) in subparagraph (F), by inserting
``small business concern owned and controlled
by service-disabled veterans,'' after ``small
business concern owned and controlled by
veterans,''; and
(3) in each of paragraphs (4)(D), (4)(E), (6)(A),
(6)(C), (6)(F), and (10)(B), by inserting ``small
business concerns owned and controlled by service-
disabled veterans,'' after ``small business concerns
owned and controlled by veterans,''.
SEC. 804. SMALL BUSINESS DEVELOPMENT CENTER PROGRAM FUNDING.
(a) Authorization.--
(1) In general.--Section 20(a)(1) of the Small
Business Act (15 U.S.C. 631 note) is amended by
striking ``For fiscal year 1985'' and all that follows
through ``expended.'' and inserting the following:
``For fiscal year 2000 and each fiscal year thereafter,
there are authorized to be appropriated such sums as
may be necessary and appropriate, to remain available
until expended, and to be available solely--
``(A) to carry out the Small Business Development
Center Program under section 21, but not to exceed the
annual funding level, as specified in section 21(a);
``(B) to pay the expenses of the National Small
Business Development Center Advisory Board, as provided
in section 21(i);
``(C) to pay the expenses of the information
sharing system, as provided in section 21(c)(8);
``(D) to pay the expenses of the association
referred to in section 21(a)(3)(A) for conducting the
certification program, as provided in section 21(k)(2);
and
``(E) to pay the expenses of the Administration,
including salaries of examiners, for conducting
examinations as part of the certification program
conducted by the association referred to in section
21(a)(3)(A).''.
(2) Technical amendment.--Section 20(a) of the
Small Business Act (15 U.S.C. 631 note) is amended by
moving the margins of paragraphs (3) and (4), including
subparagraphs (A) and (B) of paragraph (4), 2 ems to
the left.
(b) Funding Formula.--Section 21(a)(4)(C) of the Small
Business Act (15 U.S.C. 648(a)(4)(C)) is amended to read as
follows:
``(C) Funding formula.--
``(i) In general.--Subject to clause (iii),
the amount of a formula grant received by a
State under this subparagraph shall be equal to
an amount determined in accordance with the
following formula:
``(I) The annual amount made
available under section 20(a) for the
Small Business Development Center
Program, less any reductions made for
expenses authorized by clause (v) of
this subparagraph, shall be divided on
a pro rata basis, based on the
percentage of the population of each
State, as compared to the population of
the United States.
``(II) If the pro rata amount
calculated under subclause (I) for any
State is less than the minimum funding
level under clause (iii), the
Administration shall determine the
aggregate amount necessary to achieve
that minimum funding level for each
such State.
``(III) The aggregate amount
calculated under subclause (II) shall
be deducted from the amount calculated
under subclause (I) for States eligible
to receive more than the minimum
funding level. The deductions shall be
made on a pro rata basis, based on the
population of each such State, as
compared to the total population of all
such States.
``(IV) The aggregate amount
deducted under subclause (III) shall be
added to the grants of those States
that are not eligible to receive more
than the minimum funding level in order
to achieve the minimum funding level
for each such State, except that the
eligible amount of a grant to any State
shall not be reduced to an amount below
the minimum funding level.
``(ii) Grant determination.--The amount of
a grant that a State is eligible to apply for
under this subparagraph shall be the amount
determined under clause (i), subject to any
modifications required under clause (iii), and
shall be based on the amount available for the
fiscal year in which performance of the grant
commences, but not including amounts
distributed in accordance with clause (iv). The
amount of a grant received by a State under any
provision of this subparagraph shall not exceed
the amount of matching funds from sources other
than the Federal Government, as required under
subparagraph (A).
``(iii) Minimum funding level.--The amount
of the minimum funding level for each State
shall be determined for each fiscal year based
on the amount made available for that fiscal
year to carry out this section, as follows:
``(I) If the amount made available
is not less than $81,500,000 and not
more than $90,000,000, the minimum
funding level shall be $500,000.
``(II) If the amount made available
is less than $81,500,000, the minimum
funding level shall be the remainder of
$500,000 minus a percentage of $500,000
equal to the percentage amount by which
the amount made available is less than
$81,500,000.
``(III) If the amount made
available is more than $90,000,000, the
minimum funding level shall be the sum
of $500,000 plus a percentage of
$500,000 equal to the percentage amount
by which the amount made available
exceeds $90,000,000.
``(iv) Distributions.--Subject to clause
(iii), if any State does not apply for, or use,
its full funding eligibility for a fiscal year,
the Administration shall distribute the
remaining funds as follows:
``(I) If the grant to any State is
less than the amount received by that
State in fiscal year 2000, the
Administration shall distribute such
remaining funds, on a pro rata basis,
based on the percentage of shortage of
each such State, as compared to the
total amount of such remaining funds
available, to the extent necessary in
order to increase the amount of the
grant to the amount received by that
State in fiscal year 2000, or until
such funds are exhausted, whichever
first occurs.
``(II) If any funds remain after
the application of subclause (I), the
remaining amount may be distributed as
supplemental grants to any State, as
the Administration determines, in its
discretion, to be appropriate, after
consultation with the association
referred to in subsection (a)(3)(A).
``(v) Use of amounts.--
``(I) In general.--Of the amounts
made available in any fiscal year to
carry out this section--
``(aa) not more than
$500,000 may be used by the
Administration to pay expenses
enumerated in subparagraphs (B)
through (D) of section
20(a)(1); and
``(bb) not more than
$500,000 may be used by the
Administration to pay the
examination expenses enumerated
in section 20(a)(1)(E).
``(II) Limitation.--No funds
described in subclause (I) may be used
for examination expenses under section
20(a)(1)(E) if the usage would reduce
the amount of grants made available
under clause (i)(I) of this
subparagraph to less than $85,000,000
(after excluding any amounts provided
in appropriations Acts for specific
institutions or for purposes other than
the general small business development
center program) or would further reduce
the amount of such grants below such
amount.
``(vi) Exclusions.--Grants provided to a
State by the Administration or another Federal
agency to carry out subsection (a)(6) or
(c)(3)(G), or for supplemental grants set forth
in clause (iv)(II) of this subparagraph, shall
not be included in the calculation of maximum
funding for a State under clause (ii) of this
subparagraph.
``(vii) Authorization of appropriations.--
There is authorized to be appropriated to carry
out this subparagraph $125,000,000 for each of
fiscal years 2001, 2002, and 2003.
``(viii) State defined.--In this
subparagraph, the term `State' means each of
the several States, the District of Columbia,
the Commonwealth of Puerto Rico, the Virgin
Islands, Guam, and American Samoa.''.
SEC. 805. SURETY BONDS.
(a) Contract Amounts.--Section 411 of the Small Business
Investment Act of 1958 (15 U.S.C. 694b) is amended--
(1) in subsection (a)(1), by striking
``$1,250,000'' and inserting ``$2,000,000''; and
(2) in subsection (e)(2), by striking
``$1,250,000'' and inserting ``$2,000,000''.
(b) Extension of Certain Authority.--Section 207 of the
Small Business Administration Reauthorization and Amendment Act
of 1988 (15 U.S.C. 694b note) is amended by striking ``2000''
and inserting ``2003''.
SEC. 806. SIZE STANDARDS.
(a) Industry Classifications.--Section 15(a) of the Small
Business Act (15 U.S.C. 644(a)) is amended in the eighth
sentence, by striking ``four-digit standard'' and all that
follows through ``published'' and inserting ``definition of a
`United States industry' under the North American Industry
Classification System, as established''.
(b) Annual Receipts.--Section 3(a)(1) of the Small Business
Act (15 U.S.C. 632(a)(1)) is amended by striking ``$500,000''
and inserting ``$750,000''.
SEC. 807. NATIVE HAWAIIAN ORGANIZATIONS UNDER SECTION 8(A).
Section 8(a)(15)(A) of the Small Business Act (15 U.S.C.
637(a)(15)(A)) is amended to read as follows:
``(A) is a nonprofit corporation that has filed
articles of incorporation with the director (or the
designee thereof) of the Hawaii Department of Commerce
and Consumer Affairs, or any successor agency,''.
SEC. 808. NATIONAL VETERANS BUSINESS DEVELOPMENT CORPORATION
CORRECTION.
Section 33(k) of the Small Business Act (15 U.S.C. 657c(k))
is amended--
(1) by striking paragraph (1) and inserting the
following:
``(1) In general.--Subject to paragraph (2), there
are authorized to be appropriated to the Corporation to
carry out this section--
``(A) $4,000,000 for fiscal year 2001;
``(B) $4,000,000 for fiscal year 2002;
``(C) $2,000,000 for fiscal year 2003; and
``(D) $2,000,000 for fiscal year 2004.'';
(2) in paragraph (2)(A), by striking ``2001'' each
place it appears and inserting ``2002''; and
(3) in paragraph (2)(B), by striking ``2002 or
2003'' and inserting ``2003 or 2004''.
SEC. 809. PRIVATE SECTOR RESOURCES FOR SCORE.
Section 8(b)(1)(B) of the Small Business Act (15 U.S.C.
637(b)(1)(B)) is amended by adding at the end the following:
``Notwithstanding any other provision of law, SCORE may solicit
cash and in-kind contributions from the private sector to be
used to carry out its functions under this Act, and may use
payments made by the Administration pursuant to this
subparagraph for such solicitation.''.
SEC. 810. CONTRACT DATA COLLECTION.
Section 15 of the Small Business Act (15 U.S.C. 644) is
amended by adding at the end the following new subsection:
``(p) Database, Analysis, and Annual Report With Respect to
Bundled Contracts.--
``(1) Bundled contract defined.--In this
subsection, the term `bundled contract' has the meaning
given such term in section 3(o)(1).
``(2) Database.--
``(A) In general.--Not later than 180 days
after the date of the enactment of this
subsection, the Administrator of the Small
Business Administration shall develop and shall
thereafter maintain a database containing data
and information regarding--
``(i) each bundled contract awarded
by a Federal agency; and
``(ii) each small business concern
that has been displaced as a prime
contractor as a result of the award of
such a contract.
``(3) Analysis.--For each bundled contract that is
to be recompeted as a bundled contract, the
Administrator shall determine--
``(A) the amount of savings and benefits
(in accordance with subsection (e)) achieved
under the bundling of contract requirements;
and
``(B) whether such savings and benefits
will continue to be realized if the contract
remains bundled, and whether such savings and
benefits would be greater if the procurement
requirements were divided into separate
solicitations suitable for award to small
business concerns.
``(4) Annual report on contract bundling.--
``(A) In general.--Not later than 1 year
after the date of the enactment of this
paragraph, and annually in March thereafter,
the Administration shall transmit a report on
contract bundling to the Committees on Small
Business of the House of Representatives and
the Senate.
``(B) Contents.--Each report transmitted
under subparagraph (A) shall include--
``(i) data on the number, arranged
by industrial classification, of small
business concerns displaced as prime
contractors as a result of the award of
bundled contracts by Federal agencies;
and
``(ii) a description of the
activities with respect to previously
bundled contracts of each Federal
agency during the preceding year,
including--
``(I) data on the number
and total dollar amount of all
contract requirements that were
bundled; and
``(II) with respect to each
bundled contract, data or
information on--
``(aa) the
justification for the
bundling of contract
requirements;
``(bb) the cost
savings realized by
bundling the contract
requirements over the
life of the contract;
``(cc) the extent
to which maintaining
the bundled status of
contract requirements
is projected to result
in continued cost
savings;
``(dd) the extent
to which the bundling
of contract
requirements complied
with the contracting
agency's small business
subcontracting plan,
including the total
dollar value awarded to
small business concerns
as subcontractors and
the total dollar value
previously awarded to
small business concerns
as prime contractors;
and
``(ee) the impact
of the bundling of
contract requirements
on small business
concerns unable to
compete as prime
contractors for the
consolidated
requirements and on the
industries of such
small business
concerns, including a
description of any
changes to the
proportion of any such
industry that is
composed of small
business concerns.
``(5) Access to data.--
``(A) Federal procurement data system.--To
assist in the implementation of this section,
the Administration shall have access to
information collected through the Federal
Procurement Data System.
``(B) Agency procurement data sources.--To
assist in the implementation of this section,
the head of each contracting agency shall
provide, upon request of the Administration,
procurement information collected through
existing agency data collection sources.''.
SEC. 811. PROCUREMENT PROGRAM FOR WOMEN-OWNED SMALL BUSINESS CONCERNS.
Section 8 of the Small Business Act (15 U.S.C. 637) is
amended by adding at the end the following:
``(m) Procurement Program for Women-Owned Small Business
Concerns.--
``(1) Definitions.--In this subsection, the
following definitions apply:
``(A) Contracting officer.--The term
`contracting officer' has the meaning given
such term in section 27(f)(5) of the Office of
Federal Procurement Policy Act (41 U.S.C.
423(f)(5)).
``(B) Small business concern owned and
controlled by women.--The term `small business
concern owned and controlled by women' has the
meaning given such term in section 3(n), except
that ownership shall be determined without
regard to any community property law.
``(2) Authority to restrict competition.--In
accordance with this subsection, a contracting officer
may restrict competition for any contract for the
procurement of goods or services by the Federal
Government to small business concerns owned and
controlled by women, if--
``(A) each of the concerns is not less than
51 percent owned by 1 or more women who are
economically disadvantaged (and such ownership
is determined without regard to any community
property law);
``(B) the contracting officer has a
reasonable expectation that 2 or more small
business concerns owned and controlled by women
will submit offers for the contract;
``(C) the contract is for the procurement
of goods or services with respect to an
industry identified by the Administrator
pursuant to paragraph (3);
``(D) the anticipated award price of the
contract (including options) does not exceed--
``(i) $5,000,000, in the case of a
contract assigned an industrial
classification code for manufacturing;
or
``(ii) $3,000,000, in the case of
all other contracts;
``(E) in the estimation of the contracting
officer, the contract award can be made at a
fair and reasonable price; and
``(F) each of the concerns--
``(i) is certified by a Federal
agency, a State government, or a
national certifying entity approved by
the Administrator, as a small business
concern owned and controlled by women;
or
``(ii) certifies to the contracting
officer that it is a small business
concern owned and controlled by women
and provides adequate documentation, in
accordance with standards established
by the Administration, to support such
certification.
``(3) Waiver.--With respect to a small business
concern owned and controlled by women, the
Administrator may waive subparagraph (2)(A) if the
Administrator determines that the concern is in an
industry in which small business concerns owned and
controlled by women are substantially underrepresented.
``(4) Identification of industries.--The
Administrator shall conduct a study to identify
industries in which small business concerns owned and
controlled by women are underrepresented with respect
to Federal procurement contracting.
``(5) Enforcement; penalties.--
``(A) Verification of eligibility.--In
carrying out this subsection, the Administrator
shall establish procedures relating to--
``(i) the filing, investigation,
and disposition by the Administration
of any challenge to the eligibility of
a small business concern to receive
assistance under this subsection
(including a challenge, filed by an
interested party, relating to the
veracity of a certification made or
information provided to the
Administration by a small business
concern under paragraph (2)(F)); and
``(ii) verification by the
Administrator of the accuracy of any
certification made or information
provided to the Administration by a
small business concern under paragraph
(2)(F).
``(B) Examinations.--The procedures
established under subparagraph (A) may provide
for program examinations (including random
program examinations) by the Administrator of
any small business concern making a
certification or providing information to the
Administrator under paragraph (2)(F).
``(C) Penalties.--In addition to the
penalties described in section 16(d), any small
business concern that is determined by the
Administrator to have misrepresented the status
of that concern as a small business concern
owned and controlled by women for purposes of
this subsection, shall be subject to--
``(i) section 1001 of title 18,
United States Code; and
``(ii) sections 3729 through 3733
of title 31, United States Code.
``(6) Provision of data.--Upon the request of the
Administrator, the head of any Federal department or
agency shall promptly provide to the Administrator such
information as the Administrator determines to be
necessary to carry out this subsection.''.
John Edward Porter,
C.W. Bill Young,
Henry Bonilla,
Ernest J. Istook, Jr.,
Dan Miller,
Jay Dickey,
Roger F. Wicker,
Anne M. Northup,
Randy ``Duke'' Cunningham,
David R. Obey,
Steny H. Hoyer,
Nancy Pelosi,
Nita M. Lowey,
Rosa L. DeLauro,
Jesse L. Jackson, Jr.,
(Except elimination of
LIHEAP and CCDBG
advanced funding;
immigration and
charitable choice
provisions),
Managers on the Part of the House.
Arlen Specter,
Thad Cochran,
Slade Gorton,
Judd Gregg,
Kay Bailey Hutchison,
Ted Stevens,
Pete V. Domenici,
Tom Harkin,
Ernest F. Hollings,
Daniel K. Inouye,
Harry Reid,
Herb Kohl,
Patty Murray,
Dianne Feinstein,
Robert C. Byrd,
Managers on the Part of the Senate.