[107th Congress Public Law 134]
[From the U.S. Government Printing Office]


<DOC>
[DOCID: f:publ134.107]


[[Page 115 STAT. 2427]]

Public Law 107-134
107th Congress

                                 An Act


 
  To amend the Internal Revenue Code of 1986 to provide tax relief for 
  victims of the terrorist attacks against the United States, and for 
         other purposes. <<NOTE: Jan. 23, 2002 -  [H.R. 2884]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Victims of 
Terrorism Tax Relief Act of 2001.>> 

SECTION 1. SHORT TITLE; ETC.

    (a) <<NOTE: 26 USC 1 note.>> Short Title.--This Act may be cited as 
the ``Victims of Terrorism Tax Relief Act of 2001''.

    (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.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; etc.

                TITLE I--VICTIMS OF TERRORISM TAX RELIEF

     Subtitle A--Relief Provisions for Victims of Terrorist Attacks

Sec. 101. Income taxes of victims of terrorist attacks.
Sec. 102. Exclusion of certain death benefits.
Sec. 103. Estate tax reduction.
Sec. 104. Payments by charitable organizations treated as exempt 
           payments.
Sec. 105. Exclusion of certain cancellations of indebtedness.

                   Subtitle B--Other Relief Provisions

Sec. 111. Exclusion for disaster relief payments.
Sec. 112. Authority to postpone certain deadlines and required actions.
Sec. 113. Application of certain provisions to terroristic or military 
           actions.
Sec. 114. Clarification of due date for airline excise tax deposits.
Sec. 115. Treatment of certain structured settlement payments.
Sec. 116. Personal exemption deduction for certain disability trusts.

   TITLE II--DISCLOSURE OF TAX INFORMATION IN TERRORISM AND NATIONAL 
                         SECURITY INVESTIGATIONS

Sec. 201. Disclosure of tax information in terrorism and national 
           security investigations.

           TITLE III--NO IMPACT ON SOCIAL SECURITY TRUST FUNDS

Sec. 301. No impact on social security trust funds.

[[Page 115 STAT. 2428]]

                TITLE I--VICTIMS OF TERRORISM TAX RELIEF

     Subtitle A--Relief Provisions for Victims of Terrorist Attacks

SEC. 101. INCOME TAXES OF VICTIMS OF TERRORIST ATTACKS.

    (a) In General.--Section 692 <<NOTE: 26 USC 692.>> (relating to 
income taxes of members of Armed Forces on death) is amended by adding 
at the end the following new subsection:

    ``(d) Individuals Dying as a Result of Certain Attacks.--
            ``(1) In general.--In the case of a specified terrorist 
        victim, any tax imposed by this chapter shall not apply--
                    ``(A) with respect to the taxable year in which 
                falls the date of death, and
                    ``(B) with respect to any prior taxable year in the 
                period beginning with the last taxable year ending 
                before the taxable year in which the wounds, injury, or 
                illness referred to in paragraph (3) were incurred.
            ``(2) $10,000 minimum benefit.--If, but for this paragraph, 
        the amount of tax not imposed by paragraph (1) with respect to a 
        specified terrorist victim is less than $10,000, then such 
        victim shall be treated as having made a payment against the tax 
        imposed by this chapter for such victim's last taxable year in 
        an amount equal to the excess of $10,000 over the amount of tax 
        not so imposed.
            ``(3) Taxation of certain benefits.--Subject to such rules 
        as the Secretary may prescribe, paragraph (1) shall not apply to 
        the amount of any tax imposed by this chapter which would be 
        computed by only taking into account the items of income, gain, 
        or other amounts attributable to--
                    ``(A) deferred compensation which would have been 
                payable after death if the individual had died other 
                than as a specified terrorist victim, or
                    ``(B) amounts payable in the taxable year which 
                would not have been payable in such taxable year but for 
                an action taken after September 11, 2001.
            ``(4) Specified terrorist victim.--For purposes of this 
        subsection, the term `specified terrorist victim' means any 
        decedent--
                    ``(A) who dies as a result of wounds or injury 
                incurred as a result of the terrorist attacks against 
                the United States on April 19, 1995, or September 11, 
                2001, or
                    ``(B) who dies as a result of illness incurred as a 
                result of an attack involving anthrax occurring on or 
                after September 11, 2001, and before January 1, 2002.
        Such term shall not include any individual identified by the 
        Attorney General to have been a participant or conspirator in 
        any such attack or a representative of such an individual.''.

    (b) Conforming Amendments.--
            (1) Section 5(b)(1) is amended by inserting ``and victims of 
        certain terrorist attacks'' before ``on death''.
            (2) Section 6013(f)(2)(B) is amended by inserting ``and 
        victims of certain terrorist attacks'' before ``on death''.

    (c) Clerical Amendments.--

[[Page 115 STAT. 2429]]

            (1) The heading of section 692 <<NOTE: 26 USC 692.>> is 
        amended to read as follows:

``SEC. 692. INCOME TAXES OF MEMBERS OF ARMED FORCES AND VICTIMS OF 
            CERTAIN TERRORIST ATTACKS ON DEATH.''.

            (2) The item relating to section 692 in the table of 
        sections for part II of subchapter J of chapter 1 is amended to 
        read as follows:

                ``Sec. 692. Income taxes of members of Armed Forces and 
                                victims of certain terrorist attacks on 
                                death.''.

    (d) <<NOTE: 26 USC 692 note.>> Effective Date; Waiver of 
Limitations.--
            (1) <<NOTE: Applicability.>> Effective date.--The amendments 
        made by this section shall apply to taxable years ending before, 
        on, or after September 11, 2001.
            (2) Waiver of limitations.--If refund or credit of any 
        overpayment of tax resulting from the amendments made by this 
        section is prevented at any time before the close of the 1-year 
        period beginning on the date of the enactment of this Act by the 
        operation of any law or rule of law (including res judicata), 
        such refund or credit may nevertheless be made or allowed if 
        claim therefor is filed before the close of such period.

SEC. 102. EXCLUSION OF CERTAIN DEATH BENEFITS.

    (a) In General.--Section 101 (relating to certain death benefits) is 
amended by adding at the end the following new subsection:
    ``(i) Certain Employee Death Benefits Payable by Reason of Death of 
Certain Terrorist Victims.--
            ``(1) In general.--Gross income does not include amounts 
        (whether in a single sum or otherwise) paid by an employer by 
        reason of the death of an employee who is a specified terrorist 
        victim (as defined in section 692(d)(4)).
            ``(2) Limitation.--
                    ``(A) In general.--Subject to such rules as the 
                Secretary may prescribe, paragraph (1) shall not apply 
                to amounts which would have been payable after death if 
                the individual had died other than as a specified 
                terrorist victim (as so defined).
                    ``(B) Exception.--Subparagraph (A) shall not apply 
                to incidental death benefits paid from a plan described 
                in section 401(a) and exempt from tax under section 
                501(a).
            ``(3) Treatment of self-employed individuals.--For purposes 
        of paragraph (1), the term `employee' includes a self-employed 
        individual (as defined in section 401(c)(1)).''.

    (b) <<NOTE: 26 USC 101 note.>> Effective Date; Waiver of 
Limitations.--
            (1) <<NOTE: Applicability.>> Effective date.--The amendment 
        made by this section shall apply to taxable years ending before, 
        on, or after September 11, 2001.
            (2) Waiver of limitations.--If refund or credit of any 
        overpayment of tax resulting from the amendments made by this 
        section is prevented at any time before the close of the 1-year 
        period beginning on the date of the enactment of this Act by the 
        operation of any law or rule of law (including res judicata), 
        such refund or credit may nevertheless be made or allowed if 
        claim therefor is filed before the close of such period.

[[Page 115 STAT. 2430]]

SEC. 103. ESTATE TAX REDUCTION.

    (a) In General.--Section 2201 <<NOTE: 26 USC 2201.>> is amended to 
read as follows:

``SEC. 2201. COMBAT ZONE-RELATED DEATHS OF MEMBERS OF THE ARMED FORCES 
            AND DEATHS OF VICTIMS OF CERTAIN TERRORIST ATTACKS.

    ``(a) In General.--Unless the executor elects not to have this 
section apply, in applying sections 2001 and 2101 to the estate of a 
qualified decedent, the rate schedule set forth in subsection (c) shall 
be deemed to be the rate schedule set forth in section 2001(c).
    ``(b) Qualified Decedent.--For purposes of this section, the term 
`qualified decedent' means--
            ``(1) any citizen or resident of the United States dying 
        while in active service of the Armed Forces of the United 
        States, if such decedent--
                    ``(A) was killed in action while serving in a combat 
                zone, as determined under section 112(c), or
                    ``(B) died as a result of wounds, disease, or injury 
                suffered while serving in a combat zone (as determined 
                under section 112(c)), and while in the line of duty, by 
                reason of a hazard to which such decedent was subjected 
                as an incident of such service, and
            ``(2) any specified terrorist victim (as defined in section 
        692(d)(4)).

    ``(c) Rate Schedule.--

``If the amount with respeThe tentative tax is:
        which the tentative tax to 
        be computed is:
    Not over $150,000.....1 percent of the amount by which such amount 
                              exceeds $100,000.
    Over $150,000 but not $500 plus 2 percent of the excess over 
        $200,000.             $150,000.
    Over $200,000 but not $1,500 plus 3 percent of the excess over 
        $300,000.             $200,000.
    Over $300,000 but not $4,500 plus 4 percent of the excess over 
        $500,000.             $300,000.
    Over $500,000 but not $12,500 plus 5 percent of the excess over 
        $700,000.             $500,000.
    Over $700,000 but not $22,500 plus 6 percent of the excess over 
        $900,000.             $700,000.
    Over $900,000 but not $34,500 plus 7 percent of the excess over 
        $1,100,000.           $900,000.
    Over $1,100,000 but no$48,500 plus 8 percent of the excess over 
        $1,600,000.           $1,100,000.
    Over $1,600,000 but no$88,500 plus 9 percent of the excess over 
        $2,100,000.           $1,600,000.
    Over $2,100,000 but no$133,500 plus 10 percent of the excess over 
        $2,600,000.           $2,100,000.
    Over $2,600,000 but no$183,500 plus 11 percent of the excess over 
        $3,100,000.           $2,600,000.
    Over $3,100,000 but no$238,500 plus 12 percent of the excess over 
        $3,600,000.           $3,100,000.
    Over $3,600,000 but no$298,500 plus 13 percent of the excess over 
        $4,100,000.           $3,600,000.
    Over $4,100,000 but no$363,500 plus 14 percent of the excess over 
        $5,100,000.           $4,100,000.
    Over $5,100,000 but no$503,500 plus 15 percent of the excess over 
        $6,100,000.           $5,100,000.
    Over $6,100,000 but no$653,500 plus 16 percent of the excess over 
        $7,100,000.           $6,100,000.
    Over $7,100,000 but no$813,500 plus 17 percent of the excess over 
        $8,100,000.           $7,100,000.

[[Page 115 STAT. 2431]]

    Over $8,100,000 but no$983,500 plus 18 percent of the excess over 
        $9,100,000.           $8,100,000.
    Over $9,100,000 but no$1,163,500 plus 19 percent of the excess over 
        $10,100,000.          $9,100,000.
    Over $10,100,000......$1,353,500 plus 20 percent of the excess over 
                              $10,100,000.

    ``(d) Determination of Unified Credit.--In the case of an estate to 
which this section applies, subsection (a) shall not apply in 
determining the credit under section 2010.''.
    (b) Conforming Amendments.--
            (1) Section 2011 <<NOTE: 26 USC 2011.>> is amended by 
        striking subsection (d) and by redesignating subsections (e), 
        (f), and (g) as subsections (d), (e), and (f), respectively.
            (2) Section 2053(d)(3)(B) is amended by striking ``section 
        2011(e)'' and inserting ``section 2011(d)''.
            (3) Paragraph (9) of section 532(c) of the Economic Growth 
        and Tax Relief Reconciliation Act of 2001 <<NOTE: Ante, p. 
        75.>> is repealed.

    (c) Clerical Amendment.--The item relating to section 2201 in the 
table of sections for subchapter C of chapter 11 is amended to read as 
follows:

                ``Sec. 2201. Combat zone-related deaths of members of 
                                the Armed Forces and deaths of victims 
                                of certain terrorist attacks.''.

    (d) <<NOTE: 26 USC 2011 note. Applicability.>> Effective Date; 
Waiver of Limitations.--
            (1) Effective date.--The amendments made by this section 
        shall apply to estates of decedents--
                    (A) dying on or after September 11, 2001; and
                    (B) in the case of individuals dying as a result of 
                the April 19, 1995, terrorist attack, dying on or after 
                April 19, 1995.
            (2) Waiver of limitations.--If refund or credit of any 
        overpayment of tax resulting from the amendments made by this 
        section is prevented at any time before the close of the 1-year 
        period beginning on the date of the enactment of this Act by the 
        operation of any law or rule of law (including res judicata), 
        such refund or credit may nevertheless be made or allowed if 
        claim therefor is filed before the close of such period.

SEC. 104. <<NOTE: 26 USC 501 note.>> PAYMENTS BY CHARITABLE 
            ORGANIZATIONS TREATED AS EXEMPT PAYMENTS.

    (a) In General.--For purposes of the Internal Revenue Code of 1986--
            (1) <<NOTE: Anthrax.>> payments made by an organization 
        described in section 501(c)(3) of such Code by reason of the 
        death, injury, wounding, or illness of an individual incurred as 
        the result of the terrorist attacks against the United States on 
        September 11, 2001, or an attack involving anthrax occurring on 
        or after September 11, 2001, and before January 1, 2002, shall 
        be treated as related to the purpose or function constituting 
        the basis for such organization's exemption under section 501 of 
        such Code if such payments are made in good faith using a 
        reasonable and objective formula which is consistently applied; 
        and
            (2) in the case of a private foundation (as defined in 
        section 509 of such Code), any payment described in paragraph 
        (1) shall not be treated as made to a disqualified person for 
        purposes of section 4941 of such Code.

[[Page 115 STAT. 2432]]

    (b) <<NOTE: Applicability.>> Effective Date.--This section shall 
apply to payments made on or after September 11, 2001.

SEC. 105. <<NOTE: 26 USC 108 note.>> EXCLUSION OF CERTAIN CANCELLATIONS 
            OF INDEBTEDNESS.

    (a) In General.--For purposes of the Internal Revenue Code of 1986--
            (1) <<NOTE: Anthrax.>> gross income shall not include any 
        amount which (but for this section) would be includible in gross 
        income by reason of the discharge (in whole or in part) of 
        indebtedness of any taxpayer if the discharge is by reason of 
        the death of an individual incurred as the result of the 
        terrorist attacks against the United States on September 11, 
        2001, or as the result of illness incurred as a result of an 
        attack involving anthrax occurring on or after September 11, 
        2001, and before January 1, 2002; and
            (2) return requirements under section 6050P of such Code 
        shall not apply to any discharge described in paragraph (1).

    (b) <<NOTE: Applicability.>> Effective Date.--This section shall 
apply to discharges made on or after September 11, 2001, and before 
January 1, 2002.

                   Subtitle B--Other Relief Provisions

SEC. 111. EXCLUSION FOR DISASTER RELIEF PAYMENTS.

    (a) In General.--Part III of subchapter B of chapter 1 (relating to 
items specifically excluded from gross income) is amended by 
redesignating section 139 as section 140 and inserting after section 138 
the following new section:

``SEC. 139. DISASTER RELIEF PAYMENTS.

    ``(a) General Rule.--Gross income shall not include any amount 
received by an individual as a qualified disaster relief payment.
    ``(b) Qualified Disaster Relief Payment Defined.--For purposes of 
this section, the term `qualified disaster relief payment' means any 
amount paid to or for the benefit of an individual--
            ``(1) to reimburse or pay reasonable and necessary personal, 
        family, living, or funeral expenses incurred as a result of a 
        qualified disaster,
            ``(2) to reimburse or pay reasonable and necessary expenses 
        incurred for the repair or rehabilitation of a personal 
        residence or repair or replacement of its contents to the extent 
        that the need for such repair, rehabilitation, or replacement is 
        attributable to a qualified disaster,
            ``(3) by a person engaged in the furnishing or sale of 
        transportation as a common carrier by reason of the death or 
        personal physical injuries incurred as a result of a qualified 
        disaster, or
            ``(4) if such amount is paid by a Federal, State, or local 
        government, or agency or instrumentality thereof, in connection 
        with a qualified disaster in order to promote the general 
        welfare,

but only to the extent any expense compensated by such payment is not 
otherwise compensated for by insurance or otherwise.
    ``(c) Qualified Disaster Defined.--For purposes of this section, the 
term `qualified disaster' means--

[[Page 115 STAT. 2433]]

            ``(1) a disaster which results from a terroristic or 
        military action (as defined in section 692(c)(2)),
            ``(2) a Presidentially declared disaster (as defined in 
        section 1033(h)(3)),
            ``(3) a disaster which results from an accident involving a 
        common carrier, or from any other event, which is determined by 
        the Secretary to be of a catastrophic nature, or
            ``(4) with respect to amounts described in subsection 
        (b)(4), a disaster which is determined by an applicable Federal, 
        State, or local authority (as determined by the Secretary) to 
        warrant assistance from the Federal, State, or local government 
        or agency or instrumentality thereof.

    ``(d) Coordination With Employment Taxes.--For purposes of chapter 2 
and subtitle C, a qualified disaster relief payment shall not be treated 
as net earnings from self-employment, wages, or compensation subject to 
tax.
    ``(e) No Relief for Certain Individuals.--Subsections (a) and (f) 
shall not apply with respect to any individual identified by the 
Attorney General to have been a participant or conspirator in a 
terroristic action (as so defined), or a representative of such 
individual.
    ``(f) Exclusion of Certain Additional Payments.--Gross income shall 
not include any amount received as payment under section 406 of the Air 
Transportation Safety and System Stabilization Act.''.
    (b) Conforming Amendments.--The table of sections for part III of 
subchapter B of chapter 1 is amended by striking the item relating to 
section 139 and inserting the following new items:

                ``Sec. 139. Disaster relief payments.
                ``Sec. 140. Cross references to other Acts.''.

    (c) <<NOTE: Applicability. 26 USC 139 note.>> Effective Date.--The 
amendments made by this section shall apply to taxable years ending on 
or after September 11, 2001.

SEC. 112. AUTHORITY TO POSTPONE CERTAIN DEADLINES AND REQUIRED ACTIONS.

    (a) Expansion of Authority Relating to Disasters and Terroristic or 
Military Actions.--Section 7508A <<NOTE: 26 USC 7508A.>> is amended to 
read as follows:

``SEC. 7508A. AUTHORITY TO POSTPONE CERTAIN DEADLINES BY REASON OF 
            PRESIDENTIALLY DECLARED DISASTER OR TERRORISTIC OR MILITARY 
            ACTIONS.

    ``(a) In General.--In the case of a taxpayer determined by the 
Secretary to be affected by a Presidentially declared disaster (as 
defined in section 1033(h)(3)) or a terroristic or military action (as 
defined in section 692(c)(2)), the Secretary may specify a period of up 
to 1 year that may be disregarded in determining, under the internal 
revenue laws, in respect of any tax liability of such taxpayer--
            ``(1) whether any of the acts described in paragraph (1) of 
        section 7508(a) were performed within the time prescribed 
        therefor (determined without regard to extension under any other 
        provision of this subtitle for periods after the date 
        (determined by the Secretary) of such disaster or action),
            ``(2) the amount of any interest, penalty, additional 
        amount, or addition to the tax for periods after such date, and

[[Page 115 STAT. 2434]]

            ``(3) the amount of any credit or refund.

    ``(b) Special Rules Regarding Pensions, Etc.--In the case of a 
pension or other employee benefit plan, or any sponsor, administrator, 
participant, beneficiary, or other person with respect to such plan, 
affected by a disaster or action described in subsection (a), the 
Secretary may specify a period of up to 1 year which may be disregarded 
in determining the date by which any action is required or permitted to 
be completed under this title. No plan shall be treated as failing to be 
operated in accordance with the terms of the plan solely as the result 
of disregarding any period by reason of the preceding sentence.
    ``(c) <<NOTE: Applicability.>> Special Rules for Overpayments.--The 
rules of section 7508(b) shall apply for purposes of this section.''.

    (b) Clarification of Scope of Acts Secretary May Postpone.--Section 
7508(a)(1)(K) <<NOTE: 26 USC 7508.>> (relating to time to be 
disregarded) is amended by striking ``in regulations prescribed under 
this section''.

    (c) Conforming Amendments to ERISA.--
            (1) Part 5 of subtitle B of title I of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1131 et seq.) 
        is amended by adding at the end the following new section:

``SEC. 518. <<NOTE: 29 USC 1148.>> AUTHORITY TO POSTPONE CERTAIN 
            DEADLINES BY REASON OF PRESIDENTIALLY DECLARED DISASTER OR 
            TERRORISTIC OR MILITARY ACTIONS.

    ``In the case of a pension or other employee benefit plan, or any 
sponsor, administrator, participant, beneficiary, or other person with 
respect to such plan, affected by a Presidentially declared disaster (as 
defined in section 1033(h)(3) of the Internal Revenue Code of 1986) or a 
terroristic or military action (as defined in section 692(c)(2) of such 
Code), the Secretary may, notwithstanding any other provision of law, 
prescribe, by notice or otherwise, a period of up to 1 year which may be 
disregarded in determining the date by which any action is required or 
permitted to be completed under this Act. No plan shall be treated as 
failing to be operated in accordance with the terms of the plan solely 
as the result of disregarding any period by reason of the preceding 
sentence.''.
            (2) Section 4002 of Employee Retirement Income Security Act 
        of 1974 (29 U.S.C. 1302) is amended by adding at the end the 
        following new subsection:

    ``(i) Special Rules Regarding Disasters, Etc.--In the case of a 
pension or other employee benefit plan, or any sponsor, administrator, 
participant, beneficiary, or other person with respect to such plan, 
affected by a Presidentially declared disaster (as defined in section 
1033(h)(3) of the Internal Revenue Code of 1986) or a terroristic or 
military action (as defined in section 692(c)(2) of such Code), the 
corporation may, notwithstanding any other provision of law, prescribe, 
by notice or otherwise, a period of up to 1 year which may be 
disregarded in determining the date by which any action is required or 
permitted to be completed under this Act. No plan shall be treated as 
failing to be operated in accordance with the terms of the plan solely 
as the result of disregarding any period by reason of the preceding 
sentence.''.
    (d) Additional Conforming Amendments.--
            (1) Section 6404 <<NOTE: 26 USC 6404.>> is amended--
                    (A) by striking subsection (h);

[[Page 115 STAT. 2435]]

                    (B) by redesignating subsection (i) as subsection 
                (h); and
                    (C) by adding at the end the following new 
                subsection:

    ``(i) Cross Reference.--

                  ``For authority to suspend running of interest, etc. 
                by reason of Presidentially declared disaster or 
                terroristic or military action, see section 7508A.''.

            (2) Section 6081(c) <<NOTE: 26 USC 6081.>> is amended to 
        read as follows:

    ``(c) Cross References.--

                  ``For time for performing certain acts postponed by 
                reason of war, see section 7508, and by reason of 
                Presidentially declared disaster or terroristic or 
                military action, see section 7508A.''.

            (3) Section 6161(d) is amended by adding at the end the 
        following new paragraph:
            ``(3) Postponement of certain acts.--

                  ``For time for performing certain acts postponed by 
                reason of war, see section 7508, and by reason of 
                Presidentially declared disaster or terroristic or 
                military action, see section 7508A.''.

    (e) Clerical Amendments.--
            (1) The item relating to section 7508A in the table of 
        sections for chapter 77 is amended to read as follows:

                ``Sec. 7508A. Authority to postpone certain deadlines by 
                                reason of Presidentially declared 
                                disaster or terroristic or military 
                                actions.''.

            (2) The table of contents for the Employee Retirement Income 
        Security Act of 1974 is amended by inserting after the item 
        relating to section 517 the following new item:

                ``Sec. 518. Authority to postpone certain deadlines by 
                                reason of Presidentially declared 
                                disaster or terroristic or military 
                                actions.''.

    (f) <<NOTE: Applicability. 26 USC 6081 note.>> Effective Date.--The 
amendments made by this section shall apply to disasters and terroristic 
or military actions occurring on or after September 11, 2001, with 
respect to any action of the Secretary of the Treasury, the Secretary of 
Labor, or the Pension Benefit Guaranty Corporation occurring on or after 
the date of the enactment of this Act.

SEC. 113. APPLICATION OF CERTAIN PROVISIONS TO TERRORISTIC OR MILITARY 
            ACTIONS.

    (a) Disability Income.--Section 104(a)(5) (relating to compensation 
for injuries or sickness) is amended by striking ``a violent attack'' 
and all that follows through the period and inserting ``a terroristic or 
military action (as defined in section 692(c)(2)).''.
    (b) Exemption From Income Tax for Certain Military or Civilian 
Employees.--Section 692(c) is amended--
            (1) by striking ``outside the United States'' in paragraph 
        (1); and
            (2) by striking ``Sustained Overseas'' in the heading.

    (c) <<NOTE: Applicability. 26 USC 104 note.>> Effective Date.--The 
amendments made by this section shall apply to taxable years ending on 
or after September 11, 2001.

SEC. 114. CLARIFICATION OF DUE DATE FOR AIRLINE EXCISE TAX DEPOSITS.

    (a) In General.--Paragraph (3) of section 301(a) of the Air 
Transportation Safety and System Stabilization Act (Public Law 107-
42) <<NOTE: 49 USC 40101 note.>> is amended to read as follows:

[[Page 115 STAT. 2436]]

            ``(3) Airline-related deposit.--For purposes of this 
        subsection, the term `airline-related deposit' means any deposit 
        of taxes imposed by subchapter C of chapter 33 of such Code 
        (relating to transportation by air).''.

    (b) <<NOTE: 49 USC 40101 note.>> Effective Date.--The amendment made 
by this section shall take effect as if included in section 301 of the 
Air Transportation Safety and System Stabilization Act (Public Law 107-
42).

SEC. 115. TREATMENT OF CERTAIN STRUCTURED SETTLEMENT PAYMENTS.

    (a) In General.--Subtitle E is amended by adding at the end the 
following new chapter:

       ``CHAPTER 55--STRUCTURED SETTLEMENT FACTORING TRANSACTIONS

                ``Sec. 5891. Structured settlement factoring 
                                transactions.

``SEC. 5891. STRUCTURED SETTLEMENT FACTORING TRANSACTIONS.

    ``(a) Imposition of Tax.--There is hereby imposed on any person who 
acquires directly or indirectly structured settlement payment rights in 
a structured settlement factoring transaction a tax equal to 40 percent 
of the factoring discount as determined under subsection (c)(4) with 
respect to such factoring transaction.
    ``(b) Exception for Certain Approved Transactions.--
            ``(1) In general.--The tax under subsection (a) shall not 
        apply in the case of a structured settlement factoring 
        transaction in which the transfer of structured settlement 
        payment rights is approved in advance in a qualified order.
            ``(2) Qualified order.--For purposes of this section, the 
        term `qualified order' means a final order, judgment, or decree 
        which--
                    ``(A) finds that the transfer described in paragraph 
                (1)--
                          ``(i) does not contravene any Federal or State 
                      statute or the order of any court or responsible 
                      administrative authority, and
                          ``(ii) is in the best interest of the payee, 
                      taking into account the welfare and support of the 
                      payee's dependents, and
                    ``(B) is issued--
                          ``(i) under the authority of an applicable 
                      State statute by an applicable State court, or
                          ``(ii) by the responsible administrative 
                      authority (if any) which has exclusive 
                      jurisdiction over the underlying action or 
                      proceeding which was resolved by means of the 
                      structured settlement.
            ``(3) Applicable state statute.--For purposes of this 
        section, the term `applicable State statute' means a statute 
        providing for the entry of an order, judgment, or decree 
        described in paragraph (2)(A) which is enacted by--
                    ``(A) the State in which the payee of the structured 
                settlement is domiciled, or
                    ``(B) if there is no statute described in 
                subparagraph (A), the State in which either the party to 
                the structured settlement (including an assignee under a 
                qualified assignment under section 130) or the person 
                issuing the funding

[[Page 115 STAT. 2437]]

                asset for the structured settlement is domiciled or has 
                its principal place of business.
            ``(4) Applicable state court.--For purposes of this 
        section--
                    ``(A) In general.--The term `applicable State court' 
                means, with respect to any applicable State statute, a 
                court of the State which enacted such statute.
                    ``(B) Special rule.--In the case of an applicable 
                State statute described in paragraph (3)(B), such term 
                also includes a court of the State in which the payee of 
                the structured settlement is domiciled.
            ``(5) Qualified order dispositive.--A qualified order shall 
        be treated as dispositive for purposes of the exception under 
        this subsection.

    ``(c) Definitions.--For purposes of this section--
            ``(1) Structured settlement.--The term `structured 
        settlement' means an arrangement--
                    ``(A) which is established by--
                          ``(i) suit or agreement for the periodic 
                      payment of damages excludable from the gross 
                      income of the recipient under section 104(a)(2), 
                      or
                          ``(ii) agreement for the periodic payment of 
                      compensation under any workers' compensation law 
                      excludable from the gross income of the recipient 
                      under section 104(a)(1), and
                    ``(B) under which the periodic payments are--
                          ``(i) of the character described in 
                      subparagraphs (A) and (B) of section 130(c)(2), 
                      and
                          ``(ii) payable by a person who is a party to 
                      the suit or agreement or to the workers' 
                      compensation claim or by a person who has assumed 
                      the liability for such periodic payments under a 
                      qualified assignment in accordance with section 
                      130.
            ``(2) Structured settlement payment rights.--The term 
        `structured settlement payment rights' means rights to receive 
        payments under a structured settlement.
            ``(3) Structured settlement factoring transaction.--
                    ``(A) In general.--The term `structured settlement 
                factoring transaction' means a transfer of structured 
                settlement payment rights (including portions of 
                structured settlement payments) made for consideration 
                by means of sale, assignment, pledge, or other form of 
                encumbrance or alienation for consideration.
                    ``(B) Exception.--Such term shall not include--
                          ``(i) the creation or perfection of a security 
                      interest in structured settlement payment rights 
                      under a blanket security agreement entered into 
                      with an insured depository institution in the 
                      absence of any action to redirect the structured 
                      settlement payments to such institution (or agent 
                      or successor thereof) or otherwise to enforce such 
                      blanket security interest as against the 
                      structured settlement payment rights, or
                          ``(ii) a subsequent transfer of structured 
                      settlement payment rights acquired in a structured 
                      settlement factoring transaction.
            ``(4) Factoring discount.--The term `factoring discount' 
        means an amount equal to the excess of--

[[Page 115 STAT. 2438]]

                    ``(A) the aggregate undiscounted amount of 
                structured settlement payments being acquired in the 
                structured settlement factoring transaction, over
                    ``(B) the total amount actually paid by the acquirer 
                to the person from whom such structured settlement 
                payments are acquired.
            ``(5) Responsible administrative authority.--The term 
        `responsible administrative authority' means the administrative 
        authority which had jurisdiction over the underlying action or 
        proceeding which was resolved by means of the structured 
        settlement.
            ``(6) State.--The term `State' includes the Commonwealth of 
        Puerto Rico and any possession of the United States.

    ``(d) Coordination With Other Provisions.--
            ``(1) In general.--If the applicable requirements of 
        sections 72, 104(a)(1), 104(a)(2), 130, and 461(h) were 
        satisfied at the time the structured settlement involving 
        structured settlement payment rights was entered into, the 
        subsequent occurrence of a structured settlement factoring 
        transaction shall not affect the application of the provisions 
        of such sections to the parties to the structured settlement 
        (including an assignee under a qualified assignment under 
        section 130) in any taxable year.
            ``(2) No withholding of tax.--The provisions of section 3405 
        regarding withholding of tax shall not apply to the person 
        making the payments in the event of a structured settlement 
        factoring transaction.''.

    (b) Clerical Amendment.--The table of chapters for subtitle E is 
amended by adding at the end the following new item:

                ``Chapter 55. Structured settlement factoring 
                                transactions.''.

    (c) <<NOTE: 26 USC 5891 note.>> Effective Dates.--
            (1) <<NOTE: Applicability.>> In general.--The amendments 
        made by this section (other than the provisions of section 
        5891(d) of the Internal Revenue Code of 1986, as added by this 
        section) shall apply to structured settlement factoring 
        transactions (as defined in section 5891(c) of such Code (as so 
        added)) entered into on or after the 30th day following the date 
        of the enactment of this Act.
            (2) <<NOTE: Applicability.>> Clarification of existing 
        law.--Section 5891(d) of such Code (as so added) shall apply to 
        structured settlement factoring transactions (as defined in 
        section 5891(c) of such Code (as so added)) entered into before, 
        on, or after such 30th day.
            (3) Transition rule.--In the case of a structured settlement 
        factoring transaction entered into during the period beginning 
        on the 30th day following the date of the enactment of this Act 
        and ending on July 1, 2002, no tax shall be imposed under 
        section 5891(a) of such Code if--
                    (A) the structured settlement payee is domiciled in 
                a State (or possession of the United States) which has 
                not enacted a statute providing that the structured 
                settlement factoring transaction is ineffective unless 
                the transaction has been approved by an order, judgment, 
                or decree of a court (or where applicable, a responsible 
                administrative authority) which finds that such 
                transaction--

[[Page 115 STAT. 2439]]

                          (i) does not contravene any Federal or State 
                      statute or the order of any court (or responsible 
                      administrative authority); and
                          (ii) is in the best interest of the structured 
                      settlement payee or is appropriate in light of a 
                      hardship faced by the payee; and
                    (B) the person acquiring the structured settlement 
                payment rights discloses to the structured settlement 
                payee in advance of the structured settlement factoring 
                transaction the amounts and due dates of the payments to 
                be transferred, the aggregate amount to be transferred, 
                the consideration to be received by the structured 
                settlement payee for the transferred payments, the 
                discounted present value of the transferred payments 
                (including the present value as determined in the manner 
                described in section 7520 of such Code), and the 
                expenses required under the terms of the structured 
                settlement factoring transaction to be paid by the 
                structured settlement payee or deducted from the 
                proceeds of such transaction.

SEC. 116. PERSONAL EXEMPTION DEDUCTION FOR CERTAIN DISABILITY TRUSTS.

    (a) In General.--Subsection (b) of section 642 <<NOTE: 26 USC 
642.>> (relating to deduction for personal exemption) is amended to read 
as follows:

    ``(b) Deduction for Personal Exemption.--
            ``(1) Estates.--An estate shall be allowed a deduction of 
        $600.
            ``(2) Trusts.--
                    ``(A) In general.--Except as otherwise provided in 
                this paragraph, a trust shall be allowed a deduction of 
                $100.
                    ``(B) Trusts distributing income currently.--A trust 
                which, under its governing instrument, is required to 
                distribute all of its income currently shall be allowed 
                a deduction of $300.
                    ``(C) Disability trusts.--
                          ``(i) In general.--A qualified disability 
                      trust shall be allowed a deduction equal to the 
                      exemption amount under section 151(d), 
                      determined--
                                    ``(I) by treating such trust as an 
                                individual described in section 
                                151(d)(3)(C)(iii), and
                                    ``(II) by applying section 67(e) 
                                (without the reference to section 
                                642(b)) for purposes of determining the 
                                adjusted gross income of the trust.
                          ``(ii) Qualified disability trust.--For 
                      purposes of clause (i), the term `qualified 
                      disability trust' means any trust if--
                                    ``(I) such trust is a disability 
                                trust described in subsection 
                                (c)(2)(B)(iv) of section 1917 of the 
                                Social Security Act (42 U.S.C. 1396p), 
                                and
                                    ``(II) all of the beneficiaries of 
                                the trust as of the close of the taxable 
                                year are determined by the Commissioner 
                                of Social Security to have been disabled 
                                (within the meaning of section 
                                1614(a)(3) of the Social Security Act, 
                                42 U.S.C. 1382c(a)(3)) for some portion 
                                of such year.

[[Page 115 STAT. 2440]]

                      A trust shall not fail to meet the requirements of 
                      subclause (II) merely because the corpus of the 
                      trust may revert to a person who is not so 
                      disabled after the trust ceases to have any 
                      beneficiary who is so disabled.
            ``(3) Deductions in lieu of personal exemption.--The 
        deductions allowed by this subsection shall be in lieu of the 
        deductions allowed under section 151 (relating to deduction for 
        personal exemption).''.

    (b) <<NOTE: Applicability. 26 USC 642 note.>> Effective Date.--The 
amendment made by this section shall apply to taxable years ending on or 
after September 11, 2001.

   TITLE II--DISCLOSURE OF TAX INFORMATION IN TERRORISM AND NATIONAL 
                         SECURITY INVESTIGATIONS

SEC. 201. DISCLOSURE OF TAX INFORMATION IN TERRORISM AND NATIONAL 
            SECURITY INVESTIGATIONS.

    (a) Disclosure Without a Request of Information Relating to 
Terrorist Activities, Etc.--Paragraph (3) of section 6103(i) <<NOTE: 26 
USC 6103.>> (relating to disclosure of return information to apprise 
appropriate officials of criminal activities or emergency circumstances) 
is amended by adding at the end the following new subparagraph:
                    ``(C) Terrorist activities, etc.--
                          ``(i) In general.--Except as provided in 
                      paragraph (6), the Secretary may disclose in 
                      writing return information (other than taxpayer 
                      return information) that may be related to a 
                      terrorist incident, threat, or activity to the 
                      extent necessary to apprise the head of the 
                      appropriate Federal law enforcement agency 
                      responsible for investigating or responding to 
                      such terrorist incident, threat, or activity. The 
                      head of the agency may disclose such return 
                      information to officers and employees of such 
                      agency to the extent necessary to investigate or 
                      respond to such terrorist incident, threat, or 
                      activity.
                          ``(ii) Disclosure to the department of 
                      justice.--Returns and taxpayer return information 
                      may also be disclosed to the Attorney General 
                      under clause (i) to the extent necessary for, and 
                      solely for use in preparing, an application under 
                      paragraph (7)(D).
                          ``(iii) Taxpayer identity.--For purposes of 
                      this subparagraph, a taxpayer's identity shall not 
                      be treated as taxpayer return information.
                          ``(iv) Termination.--No disclosure may be made 
                      under this subparagraph after December 31, 
                      2003.''.

    (b) Disclosure Upon Request of Information Relating to Terrorist 
Activities, Etc.--Subsection (i) of section 6103 (relating to disclosure 
to Federal officers or employees for administration of Federal laws not 
relating to tax administration) is amended by redesignating paragraph 
(7) as paragraph (8) and by inserting after paragraph (6) the following 
new paragraph:
            ``(7) Disclosure upon request of information relating to 
        terrorist activities, etc.--

[[Page 115 STAT. 2441]]

                    ``(A) Disclosure to law enforcement agencies.--
                          ``(i) In general.--Except as provided in 
                      paragraph (6), upon receipt by the Secretary of a 
                      written request which meets the requirements of 
                      clause (iii), the Secretary may disclose return 
                      information (other than taxpayer return 
                      information) to officers and employees of any 
                      Federal law enforcement agency who are personally 
                      and directly engaged in the response to or 
                      investigation of any terrorist incident, threat, 
                      or activity.
                          ``(ii) Disclosure to state and local law 
                      enforcement agencies.--The head of any Federal law 
                      enforcement agency may disclose return information 
                      obtained under clause (i) to officers and 
                      employees of any State or local law enforcement 
                      agency but only if such agency is part of a team 
                      with the Federal law enforcement agency in such 
                      response or investigation and such information is 
                      disclosed only to officers and employees who are 
                      personally and directly engaged in such response 
                      or investigation.
                          ``(iii) Requirements.--A request meets the 
                      requirements of this clause if--
                                    ``(I) the request is made by the 
                                head of any Federal law enforcement 
                                agency (or his delegate) involved in the 
                                response to or investigation of any 
                                terrorist incident, threat, or activity, 
                                and
                                    ``(II) the request sets forth the 
                                specific reason or reasons why such 
                                disclosure may be relevant to a 
                                terrorist incident, threat, or activity.
                          ``(iv) Limitation on use of information.--
                      Information disclosed under this subparagraph 
                      shall be solely for the use of the officers and 
                      employees to whom such information is disclosed in 
                      such response or investigation.
                    ``(B) Disclosure to intelligence agencies.--
                          ``(i) In general.--Except as provided in 
                      paragraph (6), upon receipt by the Secretary of a 
                      written request which meets the requirements of 
                      clause (ii), the Secretary may disclose return 
                      information (other than taxpayer return 
                      information) to those officers and employees of 
                      the Department of Justice, the Department of the 
                      Treasury, and other Federal intelligence agencies 
                      who are personally and directly engaged in the 
                      collection or analysis of intelligence and 
                      counterintelligence information or investigation 
                      concerning any terrorist incident, threat, or 
                      activity. For purposes of the preceding sentence, 
                      the information disclosed under the preceding 
                      sentence shall be solely for the use of such 
                      officers and employees in such investigation, 
                      collection, or analysis.
                          ``(ii) Requirements.--A request meets the 
                      requirements of this subparagraph if the request--
                                    ``(I) is made by an individual 
                                described in clause (iii), and
                                    ``(II) sets forth the specific 
                                reason or reasons why such disclosure 
                                may be relevant to a terrorist incident, 
                                threat, or activity.

[[Page 115 STAT. 2442]]

                          ``(iii) Requesting individuals.--An individual 
                      described in this subparagraph is an individual--
                                    ``(I) who is an officer or employee 
                                of the Department of Justice or the 
                                Department of the Treasury who is 
                                appointed by the President with the 
                                advice and consent of the Senate or who 
                                is the Director of the United States 
                                Secret Service, and
                                    ``(II) who is responsible for the 
                                collection and analysis of intelligence 
                                and counterintelligence information 
                                concerning any terrorist incident, 
                                threat, or activity.
                          ``(iv) Taxpayer identity.--For purposes of 
                      this subparagraph, a taxpayer's identity shall not 
                      be treated as taxpayer return information.
                    ``(C) Disclosure under ex parte orders.--
                          ``(i) In general.--Except as provided in 
                      paragraph (6), any return or return information 
                      with respect to any specified taxable period or 
                      periods shall, pursuant to and upon the grant of 
                      an ex parte order by a Federal district court 
                      judge or magistrate under clause (ii), be open 
                      (but only to the extent necessary as provided in 
                      such order) to inspection by, or disclosure to, 
                      officers and employees of any Federal law 
                      enforcement agency or Federal intelligence agency 
                      who are personally and directly engaged in any 
                      investigation, response to, or analysis of 
                      intelligence and counterintelligence information 
                      concerning any terrorist incident, threat, or 
                      activity. Return or return information opened to 
                      inspection or disclosure pursuant to the preceding 
                      sentence shall be solely for the use of such 
                      officers and employees in the investigation, 
                      response, or analysis, and in any judicial, 
                      administrative, or grand jury proceedings, 
                      pertaining to such terrorist incident, threat, or 
                      activity.
                          ``(ii) Application for order.--The Attorney 
                      General, the Deputy Attorney General, the 
                      Associate Attorney General, any Assistant Attorney 
                      General, or any United States attorney may 
                      authorize an application to a Federal district 
                      court judge or magistrate for the order referred 
                      to in clause (i). Upon such application, such 
                      judge or magistrate may grant such order if he 
                      determines on the basis of the facts submitted by 
                      the applicant that--
                                    ``(I) there is reasonable cause to 
                                believe, based upon information believed 
                                to be reliable, that the return or 
                                return information may be relevant to a 
                                matter relating to such terrorist 
                                incident, threat, or activity, and
                                    ``(II) the return or return 
                                information is sought exclusively for 
                                use in a Federal investigation, 
                                analysis, or proceeding concerning any 
                                terrorist incident, threat, or activity.
                    ``(D) Special rule for ex parte disclosure by the 
                irs.--
                          ``(i) In general.--Except as provided in 
                      paragraph (6), the Secretary may authorize an 
                      application to a

[[Page 115 STAT. 2443]]

                      Federal district court judge or magistrate for the 
                      order referred to in subparagraph (C)(i). Upon 
                      such application, such judge or magistrate may 
                      grant such order if he determines on the basis of 
                      the facts submitted by the applicant that the 
                      requirements of subparagraph (C)(ii)(I) are met.
                          ``(ii) Limitation on use of information.--
                      Information disclosed under clause (i)--
                                    ``(I) may be disclosed only to the 
                                extent necessary to apprise the head of 
                                the appropriate Federal law enforcement 
                                agency responsible for investigating or 
                                responding to a terrorist incident, 
                                threat, or activity, and
                                    ``(II) shall be solely for use in a 
                                Federal investigation, analysis, or 
                                proceeding concerning any terrorist 
                                incident, threat, or activity.
                      The head of such Federal agency may disclose such 
                      information to officers and employees of such 
                      agency to the extent necessary to investigate or 
                      respond to such terrorist incident, threat, or 
                      activity.
                    ``(E) Termination.--No disclosure may be made under 
                this paragraph after December 31, 2003.''.

    (c) Conforming Amendments.--
            (1) Section 6103(a)(2) <<NOTE: 26 USC 6103.>> is amended by 
        inserting ``any local law enforcement agency receiving 
        information under subsection (i)(7)(A),'' after ``State,''.
            (2) Section 6103(b) is amended by adding at the end the 
        following new paragraph:
            ``(11) Terrorist incident, threat, or activity.--The term 
        `terrorist incident, threat, or activity' means an incident, 
        threat, or activity involving an act of domestic terrorism (as 
        defined in section 2331(5) of title 18, United States Code) or 
        international terrorism (as defined in section 2331(1) of such 
        title).''.
            (3) The heading of section 6103(i)(3) is amended by 
        inserting ``or terrorist'' after ``criminal''.
            (4) Paragraph (4) of section 6103(i) is amended--
                    (A) in subparagraph (A) by inserting ``or (7)(C)'' 
                after ``paragraph (1)''; and
                    (B) in subparagraph (B) by striking ``or (3)(A)'' 
                and inserting ``(3)(A) or (C), or (7)''.
            (5) Paragraph (6) of section 6103(i) is amended--
                    (A) by striking ``(3)(A)'' and inserting ``(3)(A) or 
                (C)''; and
                    (B) by striking ``or (7)'' and inserting ``(7), or 
                (8)''.
            (6) Section 6103(p)(3) is amended--
                    (A) in subparagraph (A) by striking ``(7)(A)(ii)'' 
                and inserting ``(8)(A)(ii)''; and
                    (B) in subparagraph (C) by striking ``(i)(3)(B)(i)'' 
                and inserting ``(i)(3)(B)(i) or (7)(A)(ii)''.
            (7) Section 6103(p)(4) is amended--
                    (A) in the matter preceding subparagraph (A)--
                          (i) by striking ``or (5),'' the first place it 
                      appears and inserting ``(5), or (7),''; and
                          (ii) by striking ``(i)(3)(B)(i),'' and 
                      inserting ``(i)(3)(B)(i) or (7)(A)(ii),''; and
                    (B) in subparagraph (F)(ii) by striking ``or (5),'' 
                the first place it appears and inserting ``(5) or 
                (7),''.

[[Page 115 STAT. 2444]]

            (8) Section 6103(p)(6)(B)(i) <<NOTE: 26 USC 6103.>> is 
        amended by striking ``(i)(7)(A)(ii)'' and inserting 
        ``(i)(8)(A)(ii)''.
            (9) Section 6105(b) is amended--
                    (A) by striking ``or'' at the end of paragraph (2);
                    (B) by striking ``paragraphs (1) or (2)'' in 
                paragraph (3) and inserting ``paragraph (1), (2), or 
                (3)'';
                    (C) by redesignating paragraph (3) as paragraph (4); 
                and
                    (D) by inserting after paragraph (2) the following 
                new paragraph:
            ``(3) to the disclosure of tax convention information on the 
        same terms as return information may be disclosed under 
        paragraph (3)(C) or (7) of section 6103(i), except that in the 
        case of tax convention information provided by a foreign 
        government, no disclosure may be made under this paragraph 
        without the written consent of the foreign government, or''.
            (10) Section 7213(a)(2) is amended by striking 
        ``(i)(3)(B)(i),'' and inserting ``(i)(3)(B)(i) or (7)(A)(ii),''.

    (d) <<NOTE: Applicability. 26 USC 6103 note.>> Effective Date.--The 
amendments made by this section shall apply to disclosures made on or 
after the date of the enactment of this Act.

           TITLE III--NO IMPACT ON SOCIAL SECURITY TRUST FUNDS

SEC. 301. <<NOTE: 42 USC 401 note.>> NO IMPACT ON SOCIAL SECURITY TRUST 
            FUNDS.

    (a) In General.--Nothing in this Act (or an amendment made by this 
Act) shall be construed to alter or amend title II of the Social 
Security Act (or any regulation promulgated under that Act).
    (b) Transfers.--
            (1) Estimate of secretary.--The Secretary of the Treasury 
        shall annually estimate the impact that the enactment of this 
        Act has on the income and balances of the trust funds 
        established under section 201 of the Social Security Act (42 
        U.S.C. 401).
            (2) Transfer of funds.--If, under paragraph (1), the 
        Secretary of the Treasury estimates that the enactment of this 
        Act has a negative impact on the income and balances of the 
        trust funds established under section 201 of the Social Security 
        Act (42 U.S.C. 401), the Secretary shall transfer, not less 
        frequently than quarterly, from the general revenues of the 
        Federal Government an amount sufficient so as to ensure

[[Page 115 STAT. 2445]]

        that the income and balances of such trust funds are not reduced 
        as a result of the enactment of this Act.

    Approved January 23, 2002.

LEGISLATIVE HISTORY--H.R. 2884 (S. 1440):
---------------------------------------------------------------------------

CONGRESSIONAL RECORD, Vol. 147 (2001):
            Sept. 13, considered and passed House.
            Nov. 16, considered and passed Senate, amended.
            Dec. 13, House concurred in Senate amendments with an 
                amendment.
            Dec. 20, Senate concurred in House amendment with an 
                amendment. House concurred in Senate amendment.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 38 (2002):
            Jan. 23, Presidential remarks.

                                  <all>