Declares that specified legislation enacted in the Department of Transportation and Related Agencies Appropriations Act, 2001, the Legislative Branch Appropriations Act, 2001, titles X and XI of H.R. 5548 (the Launching Our Communities' Access to Local Television Act of 2000 and the Legal Immigration Family Equity Act (LIFE) Act), and the measures described in (4) through (9) of the preceding paragraph that would have been estimated by the Office of Management and Budget (OMB) as changing direct spending or receipts under the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act) were it included in an Act other than an appropriations Act shall be treated as direct spending or receipts legislation under pay-as-you-go provisions of such Act.
Requires the Director, in preparing a final sequestration report for FY 2001 under such Act, to change any balance of direct spending and receipts legislation for FY 2001 under pay-as-you-go provisions to zero.
[106th Congress Public Law 554]
[From the U.S. Government Publishing Office]
<DOC>
[DOCID: f:publ554.106]
[[Page 114 STAT. 2763]]
Public Law 106-554
106th Congress
An Act
Making <<NOTE: Dec. 21, 2000 - [H.R. 4577]>> consolidated
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 <<NOTE: Consolidated Appropriations
Act, 2001.>> assembled,
Section 1. <<NOTE: Incorporation by reference.>> (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, except
that the text of H.R. 5666, as so enacted, shall not include
section 123 (relating to the enactment of H.R. 4904).
(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) <<NOTE: Publication. 1 USC 112 note.>> 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.
---------------------------------------------------------------------------
See Endnote on 114 Stat. 2764.
---------------------------------------------------------------------------
(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
[[Page 114 STAT. 2764]]
and receipts legislation for fiscal year 2001 under section 252 of that
Act to zero.
(c) This Act may be cited as the ``Consolidated Appropriations Act,
2001''.
Approved December 21, 2000.
LEGISLATIVE HISTORY--H.R. 4577 (S. 2553):
---------------------------------------------------------------------------
HOUSE REPORTS: Nos. 106-645 (Comm. on Appropriations) and 106-1033
(Comm. of Conference).
SENATE REPORTS: No. 106-293 accompanying S. 2553 (Comm. on
Appropriations).
CONGRESSIONAL RECORD, Vol. 146 (2000):
June 8, 12-14, considered and passed House.
June 22, 23, 26-30, considered and passed Senate, amended.
Dec. 15, House and Senate agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 36 (2000):
Dec. 21, Presidential remarks and statement.
---------------------------------------------------------------------------
__________
---------------------------------------------------------------------------
ENDNOTE: The following appendixes were added pursuant to the
provisions of section 1 of this Act (114 Stat. 2763).
<all>
[[Page 114 STAT. 2762A-1]]
TABLE OF CONTENTS
The table of contents is as follows:
APPENDIX A--H.R. 5656
APPENDIX B--H.R. 5657
APPENDIX C--H.R. 5658
APPENDIX D--H.R. 5666
APPENDIX D-1--S. 2273
APPENDIX D-2--S. 2885
APPENDIX E--H.R. 5660
APPENDIX F--H.R. 5661
APPENDIX G--H.R. 5662
APPENDIX H--H.R. 5663
APPENDIX I--H.R. 5667
[[Page 114 STAT. 2763A-3]]
APPENDIX A--H.R. 5656
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
[[Page 114 STAT. 2763A-4]]
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
[[Page 114 STAT. 2763A-5]]
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.
[[Page 114 STAT. 2763A-6]]
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
nonadministrative 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
[[Page 114 STAT. 2763A-7]]
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 the Treasury, for expenses of operation and
administration of the Black Lung Benefits program as authorized
[[Page 114 STAT. 2763A-8]]
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;
[[Page 114 STAT. 2763A-9]]
(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 for obligation for the period July
1, 2001 through June 30, 2002, for Occupational Employment Statistics.
[[Page 114 STAT. 2763A-10]]
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
[[Page 114 STAT. 2763A-11]]
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)''.
[[Page 114 STAT. 2763A-12]]
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
[[Page 114 STAT. 2763A-13]]
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
[[Page 114 STAT. 2763A-14]]
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
[[Page 114 STAT. 2763A-15]]
$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.
[[Page 114 STAT. 2763A-16]]
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.
[[Page 114 STAT. 2763A-17]]
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
[[Page 114 STAT. 2763A-18]]
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 1 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.
[[Page 114 STAT. 2763A-19]]
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
[[Page 114 STAT. 2763A-20]]
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 Outcome 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,
[[Page 114 STAT. 2763A-21]]
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.
[[Page 114 STAT. 2763A-22]]
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
[[Page 114 STAT. 2763A-23]]
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.
[[Page 114 STAT. 2763A-24]]
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
[[Page 114 STAT. 2763A-25]]
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
[[Page 114 STAT. 2763A-26]]
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.
[[Page 114 STAT. 2763A-27]]
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.
[[Page 114 STAT. 2763A-28]]
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
[[Page 114 STAT. 2763A-29]]
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
[[Page 114 STAT. 2763A-30]]
(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
[[Page 114 STAT. 2763A-31]]
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
[[Page 114 STAT. 2763A-32]]
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
[[Page 114 STAT. 2763A-33]]
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
[[Page 114 STAT. 2763A-34]]
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
[[Page 114 STAT. 2763A-35]]
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
[[Page 114 STAT. 2763A-36]]
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 3 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
[[Page 114 STAT. 2763A-37]]
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,
[[Page 114 STAT. 2763A-38]]
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
[[Page 114 STAT. 2763A-39]]
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
[[Page 114 STAT. 2763A-40]]
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
[[Page 114 STAT. 2763A-41]]
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.
[[Page 114 STAT. 2763A-42]]
(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;
[[Page 114 STAT. 2763A-43]]
(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,
[[Page 114 STAT. 2763A-44]]
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:
[[Page 114 STAT. 2763A-45]]
``(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 1 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
[[Page 114 STAT. 2763A-46]]
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,''; and
(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
[[Page 114 STAT. 2763A-47]]
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''; and
(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
[[Page 114 STAT. 2763A-48]]
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
[[Page 114 STAT. 2763A-49]]
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
[[Page 114 STAT. 2763A-50]]
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.
[[Page 114 STAT. 2763A-51]]
(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
[[Page 114 STAT. 2763A-52]]
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
[[Page 114 STAT. 2763A-53]]
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
[[Page 114 STAT. 2763A-54]]
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 in 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
[[Page 114 STAT. 2763A-55]]
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
[[Page 114 STAT. 2763A-56]]
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)).
[[Page 114 STAT. 2763A-57]]
(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 Education 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
[[Page 114 STAT. 2763A-58]]
three 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 three grants in accordance with subsections (a) through (c),
such three-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.
[[Page 114 STAT. 2763A-59]]
``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
[[Page 114 STAT. 2763A-60]]
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 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
[[Page 114 STAT. 2763A-61]]
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--
[[Page 114 STAT. 2763A-62]]
``(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.
[[Page 114 STAT. 2763A-63]]
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
[[Page 114 STAT. 2763A-64]]
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,
[[Page 114 STAT. 2763A-65]]
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.
[[Page 114 STAT. 2763A-66]]
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
[[Page 114 STAT. 2763A-67]]
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
[[Page 114 STAT. 2763A-68]]
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
[[Page 114 STAT. 2763A-69]]
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''.
[[Page 114 STAT. 2763A-70]]
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
[[Page 114 STAT. 2763A-71]]
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.
[[Page 114 STAT. 2763A-72]]
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. (a) Human Papillomavirus.--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 1 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 1 year after the effective date of this section,
and shall develop a final report not later than 3 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;
[[Page 114 STAT. 2763A-73]]
``(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.''.
(b) 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
[[Page 114 STAT. 2763A-74]]
``(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 Act (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. 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
SEC. 601. SHORT TITLE.
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''.
[[Page 114 STAT. 2763A-75]]
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''.
[[Page 114 STAT. 2763A-76]]
(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 one 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.
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``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 one in four 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.
[[Page 114 STAT. 2763A-78]]
``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) home-schooled 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
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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;
[[Page 114 STAT. 2763A-80]]
(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 two 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.
[[Page 114 STAT. 2763A-81]]
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;
[[Page 114 STAT. 2763A-82]]
(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
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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 three 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,
[[Page 114 STAT. 2763A-84]]
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--
[[Page 114 STAT. 2763A-85]]
(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
two 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.
[[Page 114 STAT. 2763A-86]]
(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;
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(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.
[[Page 114 STAT. 2763A-88]]
(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
[[Page 114 STAT. 2763A-89]]
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.
[[Page 114 STAT. 2763A-90]]
``(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
[[Page 114 STAT. 2763A-91]]
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
[[Page 114 STAT. 2763A-92]]
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''.
[[Page 114 STAT. 2763A-93]]
APPENDIX B--H.R. 5657
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.
[[Page 114 STAT. 2763A-94]]
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.
[[Page 114 STAT. 2763A-95]]
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:
[[Page 114 STAT. 2763A-96]]
``(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'').
[[Page 114 STAT. 2763A-97]]
(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
[[Page 114 STAT. 2763A-98]]
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
[[Page 114 STAT. 2763A-99]]
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
[[Page 114 STAT. 2763A-100]]
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 multiyear 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.
[[Page 114 STAT. 2763A-101]]
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, 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.
[[Page 114 STAT. 2763A-102]]
administrative provision
Sec. 105. During fiscal year 2001 the Secretary of Defense shall
provide protective services on a nonreimbursable 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
[[Page 114 STAT. 2763A-103]]
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
[[Page 114 STAT. 2763A-104]]
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.
[[Page 114 STAT. 2763A-105]]
(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;
[[Page 114 STAT. 2763A-106]]
(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.
[[Page 114 STAT. 2763A-107]]
(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.
[[Page 114 STAT. 2763A-108]]
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
[[Page 114 STAT. 2763A-109]]
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
[[Page 114 STAT. 2763A-110]]
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.
[[Page 114 STAT. 2763A-111]]
(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
[[Page 114 STAT. 2763A-112]]
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,
[[Page 114 STAT. 2763A-113]]
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
[[Page 114 STAT. 2763A-114]]
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
[[Page 114 STAT. 2763A-115]]
(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,
[[Page 114 STAT. 2763A-116]]
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
[[Page 114 STAT. 2763A-117]]
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
[[Page 114 STAT. 2763A-118]]
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.
[[Page 114 STAT. 2763A-119]]
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--
[[Page 114 STAT. 2763A-120]]
(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 two 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.--
[[Page 114 STAT. 2763A-121]]
(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 nine members as follows:
(A) Two members appointed by the Speaker of the
House of Representatives, one of whom shall be
designated by the Majority Leader of the House of
Representatives and one of whom shall be designated by
the Minority Leader of the House of Representatives.
(B) Two members appointed by the President pro
tempore of the Senate, one of whom shall be designated
by the Majority Leader of the Senate and one of whom
shall be designated by the Minority Leader of the
Senate.
(C) The Librarian of Congress.
(D) Four 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
[[Page 114 STAT. 2763A-122]]
(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
[[Page 114 STAT. 2763A-123]]
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 four 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
[[Page 114 STAT. 2763A-124]]
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''.
[[Page 114 STAT. 2763A-125]]
APPENDIX C--H.R. 5658
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.
[[Page 114 STAT. 2763A-126]]
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
[[Page 114 STAT. 2763A-127]]
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
[[Page 114 STAT. 2763A-128]]
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;
[[Page 114 STAT. 2763A-129]]
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
[[Page 114 STAT. 2763A-130]]
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.
[[Page 114 STAT. 2763A-131]]
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
[[Page 114 STAT. 2763A-132]]
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
[[Page 114 STAT. 2763A-133]]
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.
[[Page 114 STAT. 2763A-134]]
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
[[Page 114 STAT. 2763A-135]]
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
[[Page 114 STAT. 2763A-136]]
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
[[Page 114 STAT. 2763A-137]]
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
expended, 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.
[[Page 114 STAT. 2763A-138]]
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 Advisers 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
[[Page 114 STAT. 2763A-139]]
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 counter-
narcotics 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
[[Page 114 STAT. 2763A-140]]
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.
[[Page 114 STAT. 2763A-141]]
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,
United States Courthouse; District
[[Page 114 STAT. 2763A-142]]
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, United
States Courthouse; Montana, Eureka/Roosville, Border Station; Virginia,
Richmond, United States Courthouse; Washington, Seattle, United States
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 United States Courthouse,
$18,434,000
Pennsylvania:
Pittsburgh, United States 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
[[Page 114 STAT. 2763A-143]]
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, United States Courthouse Annex; Florida, Miami,
United States Courthouse; Massachusetts, Springfield, United States
Courthouse; New York, Buffalo, United States 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
[[Page 114 STAT. 2763A-144]]
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.
[[Page 114 STAT. 2763A-145]]
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
Governmentwide benefits and savings, may be repaid to this Fund from any
savings actually incurred by these projects or other funding, to the
extent feasible.
[[Page 114 STAT. 2763A-146]]
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
[[Page 114 STAT. 2763A-147]]
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.
[[Page 114 STAT. 2763A-148]]
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.
[[Page 114 STAT. 2763A-149]]
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.
[[Page 114 STAT. 2763A-150]]
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.
[[Page 114 STAT. 2763A-151]]
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.
[[Page 114 STAT. 2763A-152]]
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
[[Page 114 STAT. 2763A-153]]
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,
[[Page 114 STAT. 2763A-154]]
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 of 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,
[[Page 114 STAT. 2763A-155]]
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
[[Page 114 STAT. 2763A-156]]
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;
[[Page 114 STAT. 2763A-157]]
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
[[Page 114 STAT. 2763A-158]]
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,
[[Page 114 STAT. 2763A-159]]
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).
[[Page 114 STAT. 2763A-160]]
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
[[Page 114 STAT. 2763A-161]]
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.
[[Page 114 STAT. 2763A-162]]
(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.
[[Page 114 STAT. 2763A-163]]
(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
[[Page 114 STAT. 2763A-164]]
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 (hereafter 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 (hereafter 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
[[Page 114 STAT. 2763A-165]]
(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
[[Page 114 STAT. 2763A-166]]
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
[[Page 114 STAT. 2763A-167]]
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:
[[Page 114 STAT. 2763A-168]]
``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 CONVICTED 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
[[Page 114 STAT. 2763A-169]]
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--
[[Page 114 STAT. 2763A-170]]
``(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''.
[[Page 114 STAT. 2763A-171]]
APPENDIX D--H.R. 5666
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'';
[[Page 114 STAT. 2763A-172]]
(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:
[[Page 114 STAT. 2763A-173]]
``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
[[Page 114 STAT. 2763A-174]]
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
[[Page 114 STAT. 2763A-175]]
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
[[Page 114 STAT. 2763A-176]]
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 25 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 fisheries 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
[[Page 114 STAT. 2763A-177]]
(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.
[[Page 114 STAT. 2763A-178]]
(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 10
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
[[Page 114 STAT. 2763A-179]]
and Senate Appropriations Committee within 6 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''--
[[Page 114 STAT. 2763A-180]]
(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
[[Page 114 STAT. 2763A-181]]
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,
[[Page 114 STAT. 2763A-182]]
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,
[[Page 114 STAT. 2763A-183]]
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;
[[Page 114 STAT. 2763A-184]]
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
[[Page 114 STAT. 2763A-185]]
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--
[[Page 114 STAT. 2763A-186]]
(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 2 years
after the date of the enactment of this Act.
(g) Environmental Review.--Not later than 6 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
[[Page 114 STAT. 2763A-187]]
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), D.C. 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), D.C. Code), as amended by section 133 of the
District of Columbia Appropriations Act, 1990, is amended--
[[Page 114 STAT. 2763A-188]]
(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.
[[Page 114 STAT. 2763A-189]]
(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. (a) 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), D.C. 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.
[[Page 114 STAT. 2763A-190]]
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.
[[Page 114 STAT. 2763A-191]]
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 30 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.
[[Page 114 STAT. 2763A-192]]
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
[[Page 114 STAT. 2763A-193]]
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.
[[Page 114 STAT. 2763A-194]]
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
[[Page 114 STAT. 2763A-195]]
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), respectively; 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 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
[[Page 114 STAT. 2763A-196]]
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 enactment of this
paragraph, and who has on such date or thereafter acquired 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
[[Page 114 STAT. 2763A-197]]
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 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
[[Page 114 STAT. 2763A-198]]
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 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 103d
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):
[[Page 114 STAT. 2763A-199]]
(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:
[[Page 114 STAT. 2763A-200]]
(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
[[Page 114 STAT. 2763A-201]]
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;
[[Page 114 STAT. 2763A-202]]
``(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.
[[Page 114 STAT. 2763A-203]]
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
[[Page 114 STAT. 2763A-204]]
(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 5-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 the 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.--
[[Page 114 STAT. 2763A-205]]
(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. 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
[[Page 114 STAT. 2763A-206]]
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
[[Page 114 STAT. 2763A-207]]
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. 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.
[[Page 114 STAT. 2763A-208]]
(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.
[[Page 114 STAT. 2763A-209]]
(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
[[Page 114 STAT. 2763A-210]]
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 one 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 20 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 title 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 chapter 53 of title 49, United
States Code, during the 6 months prior to the effective date of this
Act: Provided,
[[Page 114 STAT. 2763A-211]]
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.
[[Page 114 STAT. 2763A-212]]
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.
[[Page 114 STAT. 2763A-213]]
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.
[[Page 114 STAT. 2763A-214]]
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
[[Page 114 STAT. 2763A-215]]
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
[[Page 114 STAT. 2763A-216]]
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
[[Page 114 STAT. 2763A-217]]
``(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
[[Page 114 STAT. 2763A-218]]
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 24 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.).
[[Page 114 STAT. 2763A-219]]
(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.
[[Page 114 STAT. 2763A-220]]
``(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.
[[Page 114 STAT. 2763A-221]]
``(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, Genesee 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--
[[Page 114 STAT. 2763A-222]]
(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
storm water 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'').
[[Page 114 STAT. 2763A-223]]
(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
[[Page 114 STAT. 2763A-224]]
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 Rivers 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
[[Page 114 STAT. 2763A-225]]
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
[[Page 114 STAT. 2763A-226]]
``(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 nine 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;
``(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
[[Page 114 STAT. 2763A-227]]
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.
[[Page 114 STAT. 2763A-228]]
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.
[[Page 114 STAT. 2763A-229]]
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. 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 totaling 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
[[Page 114 STAT. 2763A-230]]
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
[[Page 114 STAT. 2763A-231]]
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 7 CFR
3015, 3019, and 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'),
[[Page 114 STAT. 2763A-232]]
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.''.
[[Page 114 STAT. 2763A-233]]
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 The maximum percentage allowable is:......
in fiscal year:
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
[[Page 114 STAT. 2763A-234]]
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 The maximum percentage allowable is:......
in fiscal year:
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 The maximum percentage allowable is:......
in fiscal year:
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.
[[Page 114 STAT. 2763A-235]]
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.
[[Page 114 STAT. 2763A-236]]
``(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
[[Page 114 STAT. 2763A-237]]
``(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
[[Page 114 STAT. 2763A-238]]
``(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 12 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--
[[Page 114 STAT. 2763A-239]]
(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.'';
[[Page 114 STAT. 2763A-240]]
(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;
[[Page 114 STAT. 2763A-241]]
(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 5-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--
[[Page 114 STAT. 2763A-242]]
(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.
[[Page 114 STAT. 2763A-243]]
(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
[[Page 114 STAT. 2763A-244]]
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
[[Page 114 STAT. 2763A-245]]
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:
[[Page 114 STAT. 2763A-246]]
``(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
[[Page 114 STAT. 2763A-247]]
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)(ii).
(C) Effective on the date on which the Secretary of Commerce makes
the certification described in subparagraph (b)(2), the following
provisions are repealed:
[[Page 114 STAT. 2763A-248]]
(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
[[Page 114 STAT. 2763A-249]]
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 one
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
[[Page 114 STAT. 2763A-250]]
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 six 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.
[[Page 114 STAT. 2763A-251]]
(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,
[[Page 114 STAT. 2763A-252]]
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
[[Page 114 STAT. 2763A-253]]
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.
[[Page 114 STAT. 2763A-254]]
(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
SEC. 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:
[[Page 114 STAT. 2763A-255]]
(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 1 year, two shall serve for terms of 2 years, and two shall
serve for terms of 3 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 6
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
[[Page 114 STAT. 2763A-256]]
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
[[Page 114 STAT. 2763A-257]]
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 six of the
nine 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--
[[Page 114 STAT. 2763A-258]]
(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
SEC. 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
[[Page 114 STAT. 2763A-259]]
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).
[[Page 114 STAT. 2763A-260]]
(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
[[Page 114 STAT. 2763A-261]]
``(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.--
[[Page 114 STAT. 2763A-262]]
``(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
[[Page 114 STAT. 2763A-263]]
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--
[[Page 114 STAT. 2763A-264]]
``(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 three-fourths
of the funds appropriated pursuant to this section
and consistent with the long-standing practice of
the Tribes
[[Page 114 STAT. 2763A-265]]
and other local entities and communities to work
together to use their respective water rights and
resources for mutual benefit, at least three-
fourths 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 one-third of the funds referred to in clause
(i) for municipal or rural water development and
not less than two-thirds 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.
[[Page 114 STAT. 2763A-266]]
``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
SEC. 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
[[Page 114 STAT. 2763A-267]]
(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
[[Page 114 STAT. 2763A-268]]
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
[[Page 114 STAT. 2763A-269]]
(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
[[Page 114 STAT. 2763A-270]]
``(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 an 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 an 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;
[[Page 114 STAT. 2763A-271]]
``(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 cochairperson
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;
``(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;
[[Page 114 STAT. 2763A-272]]
``(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
5, 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
[[Page 114 STAT. 2763A-273]]
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;
[[Page 114 STAT. 2763A-274]]
``(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--
[[Page 114 STAT. 2763A-275]]
``(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
[[Page 114 STAT. 2763A-276]]
``(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
[[Page 114 STAT. 2763A-277]]
``(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.--
[[Page 114 STAT. 2763A-278]]
``(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 one 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
[[Page 114 STAT. 2763A-279]]
``(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 one 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
[[Page 114 STAT. 2763A-280]]
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.
[[Page 114 STAT. 2763A-281]]
``(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
SEC. 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
[[Page 114 STAT. 2763A-282]]
(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 one 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.''.
[[Page 114 STAT. 2763A-283]]
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
[[Page 114 STAT. 2763A-284]]
(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
[[Page 114 STAT. 2763A-285]]
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 selection, 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 Effect on Repayment Methodology.--In
accordance with the last sentence of section 302(a)(3)
[[Page 114 STAT. 2763A-286]]
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.
[[Page 114 STAT. 2763A-287]]
``(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
[[Page 114 STAT. 2763A-288]]
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
[[Page 114 STAT. 2763A-289]]
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 one 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
[[Page 114 STAT. 2763A-290]]
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.--
[[Page 114 STAT. 2763A-291]]
``(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
(iii) 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--
[[Page 114 STAT. 2763A-292]]
``(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
[[Page 114 STAT. 2763A-293]]
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
SEC. 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.
[[Page 114 STAT. 2763A-294]]
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
[[Page 114 STAT. 2763A-295]]
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.--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;
[[Page 114 STAT. 2763A-296]]
(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, nonprofit 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 framework 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
[[Page 114 STAT. 2763A-297]]
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) Seven 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) Eleven 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) Two members based on a recommendation from each
United States Senator from New York State.
(C) Six 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, six shall be for a term of 1 year, six shall be
for a term of 2 years, and seven shall be for a term of 3 years. Any
member of the Commission appointed
[[Page 114 STAT. 2763A-298]]
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 Offices.--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.--Fourteen 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
[[Page 114 STAT. 2763A-299]]
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 section 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 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 section 805(b), include--
(1) assisting in the appropriate preservation treatment of
the remaining elements of the original Erie Canal;
[[Page 114 STAT. 2763A-300]]
(2) assisting State, 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;
[[Page 114 STAT. 2763A-301]]
(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 Park 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.
[[Page 114 STAT. 2763A-302]]
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, two 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
[[Page 114 STAT. 2763A-303]]
(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), D.C. 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
[[Page 114 STAT. 2763A-304]]
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
[[Page 114 STAT. 2763A-305]]
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), D.C. 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), D.C. 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),
D.C. 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), D.C. 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 5-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), D.C. 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), D.C. Code) is amended--
(1) in the matter preceding paragraph (1), by ``Each'' and
inserting ``Except as provided in paragraph (5), each''; and
[[Page 114 STAT. 2763A-306]]
(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,
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, D.C. 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), D.C. 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
first day of the 1st pay period beginning 6 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
[[Page 114 STAT. 2763A-307]]
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
[[Page 114 STAT. 2763A-308]]
of section 304 of the District of Columbia Police and Firemen's Salary
Act of 1958 (sec. 4-413, D.C. 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 first day of the first pay period beginning
6 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, D.C. Code), or section 301 of the
District of Columbia Police and Firemen's Salary Act of 1953 (sec. 4-
605, D.C. 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, D.C. 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'';
(2) in subsection (c), by striking ``$595 per annum'' each
place it appears and inserting the following: ``$595 per annum,
except in the case of an officer or member of 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''; and
(3) in subsection (e), by inserting after ``Whenever any
officer or member'' the following: ``(other than an officer or
member of the United States Secret Service Uniformed Division or
the United States Park Police)''.
[[Page 114 STAT. 2763A-309]]
(b) Helicopter Pilot, Bomb Disposal, or Scuba Diving Duty.--Section
202 of such Act (sec. 4-408, D.C. Code) is amended by striking ``$2,270
per annum'' and inserting the following: ``$2,270 per annum, except in
the case of an officer or member of the United States Park Police, who
shall receive a per annum amount equal to 7 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.''.
[[Page 114 STAT. 2763A-310]]
(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 first day of the first
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 5 and 50 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.
[[Page 114 STAT. 2763A-311]]
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 6 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 29 Navajo men to serve as Marine Corps Radio
Operators;
(4) the number of Navajo enlistees later increased to more
than 350;
(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;
[[Page 114 STAT. 2763A-312]]
(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 29 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 (1), the
Secretary of the Treasury (in this section referred 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.
[[Page 114 STAT. 2763A-313]]
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 Solid Waste Disposal Act (42 U.S.C. 6901 et
seq.);
(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
one or more aboveground storage tanks that--
[[Page 114 STAT. 2763A-314]]
(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 fiscal 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.
[[Page 114 STAT. 2763A-315]]
TITLE XIV--CERTAIN ALASKAN CRUISE SHIP OPERATIONS
SEC. 1401. PURPOSE.
The purpose of this title is to:
(1) 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.
(2) 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.
(3) 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.
(4) 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.
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.
[[Page 114 STAT. 2763A-316]]
(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 <greek-m>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
[[Page 114 STAT. 2763A-317]]
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; and
(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.--
[[Page 114 STAT. 2763A-318]]
(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 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
[[Page 114 STAT. 2763A-319]]
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 the 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
[[Page 114 STAT. 2763A-320]]
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) In General.--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
[[Page 114 STAT. 2763A-321]]
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 30 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
[[Page 114 STAT. 2763A-322]]
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.
[[Page 114 STAT. 2763A-323]]
(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 three 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.
[[Page 114 STAT. 2763A-324]]
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)
[[Page 114 STAT. 2763A-325]]
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 adjustment 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
[[Page 114 STAT. 2763A-326]]
(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 on 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
[[Page 114 STAT. 2763A-327]]
``(B) the Attorney General may grant the alien a
waiver on 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 Nationality 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,
[[Page 114 STAT. 2763A-328]]
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
[[Page 114 STAT. 2763A-329]]
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 multiyear 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
[[Page 114 STAT. 2763A-330]]
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 section
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
[[Page 114 STAT. 2763A-331]]
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:
[[Page 114 STAT. 2763A-332]]
``(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)--
[[Page 114 STAT. 2763A-333]]
(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.''.
[[Page 114 STAT. 2763A-334]]
(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.
[[Page 114 STAT. 2763A-335]]
(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''.
[[Page 114 STAT. 2763A-336]]
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.
[[Page 114 STAT. 2763A-337]]
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.--
[[Page 114 STAT. 2763A-338]]
``(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
[[Page 114 STAT. 2763A-339]]
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;
[[Page 114 STAT. 2763A-340]]
``(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
[[Page 114 STAT. 2763A-341]]
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
[[Page 114 STAT. 2763A-342]]
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
[[Page 114 STAT. 2763A-343]]
``(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 one
public hearing or meeting to address the proposed
Internet safety policy. In the case of an
elementary
[[Page 114 STAT. 2763A-344]]
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.
[[Page 114 STAT. 2763A-345]]
``(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
[[Page 114 STAT. 2763A-346]]
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.
[[Page 114 STAT. 2763A-347]]
``(iii) Public notice; hearing.--A library
described in clause (i) shall provide reasonable
public notice and hold at least one 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)
[[Page 114 STAT. 2763A-348]]
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.--
[[Page 114 STAT. 2763A-349]]
``(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
[[Page 114 STAT. 2763A-350]]
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--
[[Page 114 STAT. 2763A-351]]
``(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
[[Page 114 STAT. 2763A-352]]
court of three 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
three 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''.
__________
---------------------------------------------------------------------------
ENDNOTE: Appendixes D-1 and D-2 were added pursuant to the
provisions of sections 125 and 127 of this Appendix (114 Stat. 2763A-
229).
[[Page 114 STAT. 2763A-353]]
APPENDIX D-1--S. 2273
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.
[[Page 114 STAT. 2763A-354]]
(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
[[Page 114 STAT. 2763A-355]]
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.
Subject to valid existing rights, all Federal lands within the
conservation area and all lands and interests therein which are
[[Page 114 STAT. 2763A-356]]
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.
[[Page 114 STAT. 2763A-357]]
(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.
[[Page 114 STAT. 2763A-359]]
APPENDIX D-2--S. 2885
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;
[[Page 114 STAT. 2763A-360]]
(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.
[[Page 114 STAT. 2763A-361]]
(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.
[[Page 114 STAT. 2763A-362]]
(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
[[Page 114 STAT. 2763A-363]]
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 nonreimbursable
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.
[[Page 114 STAT. 2763A-365]]
APPENDIX E--H.R. 5660
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.
[[Page 114 STAT. 2763A-366]]
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--
[[Page 114 STAT. 2763A-367]]
``(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--
[[Page 114 STAT. 2763A-368]]
``(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 CFR
4.7(a));
``(bb) accredited investors,
as defined in Regulation D of
the Securities and Exchange
Commission under the Securities
Act of 1933 (17 CFR 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--
[[Page 114 STAT. 2763A-369]]
``(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;
[[Page 114 STAT. 2763A-370]]
``(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
[[Page 114 STAT. 2763A-371]]
``(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 one 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.
[[Page 114 STAT. 2763A-372]]
``(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 one or more payments indexed to the
value, level, or rate of, or providing for the delivery of, one
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 five 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
[[Page 114 STAT. 2763A-373]]
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) one of 750 securities with
the largest market capitalization; and
``(cc) one 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
the 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 the 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.
[[Page 114 STAT. 2763A-374]]
``(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
[[Page 114 STAT. 2763A-375]]
under section 3(a)(12) of the Securities Exchange Act of 1934 as
in effect on the date of the 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 the 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
[[Page 114 STAT. 2763A-376]]
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;
[[Page 114 STAT. 2763A-377]]
``(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);
[[Page 114 STAT. 2763A-378]]
``(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
[[Page 114 STAT. 2763A-379]]
``(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 the 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.--
[[Page 114 STAT. 2763A-380]]
``(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 one 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--
[[Page 114 STAT. 2763A-381]]
``(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
[[Page 114 STAT. 2763A-382]]
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
[[Page 114 STAT. 2763A-383]]
``(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--
[[Page 114 STAT. 2763A-384]]
``(A)(i) 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
[[Page 114 STAT. 2763A-385]]
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--
[[Page 114 STAT. 2763A-386]]
``(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
[[Page 114 STAT. 2763A-387]]
``(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
[[Page 114 STAT. 2763A-388]]
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;
[[Page 114 STAT. 2763A-389]]
``(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
[[Page 114 STAT. 2763A-390]]
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
[[Page 114 STAT. 2763A-391]]
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 the 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 two 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,
[[Page 114 STAT. 2763A-392]]
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 one 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
[[Page 114 STAT. 2763A-393]]
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,
[[Page 114 STAT. 2763A-394]]
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
[[Page 114 STAT. 2763A-395]]
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; and
``(5) transfer assets and liabilities to a bridge bank as
provided in paragraphs (1), (3)(A), (5), and (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;''.
[[Page 114 STAT. 2763A-396]]
(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--
[[Page 114 STAT. 2763A-397]]
``(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.
[[Page 114 STAT. 2763A-398]]
``(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
[[Page 114 STAT. 2763A-399]]
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 the 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.
[[Page 114 STAT. 2763A-400]]
``(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--
[[Page 114 STAT. 2763A-401]]
``(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 sections
2(a)(1) and 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.
[[Page 114 STAT. 2763A-402]]
``(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,
[[Page 114 STAT. 2763A-403]]
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; and
``(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.
[[Page 114 STAT. 2763A-404]]
``(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 the enactment of this
section, the Commission shall submit to the Committee on Agriculture of
the House of Representatives and the Committee
[[Page 114 STAT. 2763A-405]]
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)--
(I) by striking ``subparagraph (B)
of this subparagraph'' and inserting
``subparagraphs (C) and (D) of this
paragraph and subsections (c) through
(i) of this section'';
(II) 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'';
(III) by striking clause (ii); and
(IV) 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)--
[[Page 114 STAT. 2763A-406]]
(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
[[Page 114 STAT. 2763A-407]]
(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''.
[[Page 114 STAT. 2763A-408]]
(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--
[[Page 114 STAT. 2763A-409]]
(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'';
[[Page 114 STAT. 2763A-410]]
(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'';
[[Page 114 STAT. 2763A-411]]
(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 the 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
[[Page 114 STAT. 2763A-412]]
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
[[Page 114 STAT. 2763A-413]]
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 the 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 the 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)
[[Page 114 STAT. 2763A-414]]
of the Commodity Exchange 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.
``(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 five 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 nine 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) one of 750 securities with the largest
market capitalization; and
``(cc) one 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 the 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;
[[Page 114 STAT. 2763A-415]]
``(v) no more than 18 months have passed since the
date of the 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).''.
[[Page 114 STAT. 2763A-416]]
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
[[Page 114 STAT. 2763A-417]]
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 the 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
[[Page 114 STAT. 2763A-418]]
``(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 the
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
[[Page 114 STAT. 2763A-419]]
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.
[[Page 114 STAT. 2763A-420]]
``(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
[[Page 114 STAT. 2763A-421]]
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
[[Page 114 STAT. 2763A-422]]
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
[[Page 114 STAT. 2763A-423]]
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);
[[Page 114 STAT. 2763A-424]]
``(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
[[Page 114 STAT. 2763A-425]]
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'';
[[Page 114 STAT. 2763A-426]]
(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 the 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
[[Page 114 STAT. 2763A-427]]
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;
[[Page 114 STAT. 2763A-428]]
``(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
[[Page 114 STAT. 2763A-429]]
``(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
the 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
[[Page 114 STAT. 2763A-430]]
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:
[[Page 114 STAT. 2763A-431]]
``(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
[[Page 114 STAT. 2763A-432]]
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,
[[Page 114 STAT. 2763A-433]]
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 the 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.''.
[[Page 114 STAT. 2763A-434]]
(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--
[[Page 114 STAT. 2763A-435]]
(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.''; and
(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,''.
[[Page 114 STAT. 2763A-436]]
(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)--
[[Page 114 STAT. 2763A-437]]
(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''; and
(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:
[[Page 114 STAT. 2763A-438]]
``(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
[[Page 114 STAT. 2763A-439]]
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
[[Page 114 STAT. 2763A-440]]
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
[[Page 114 STAT. 2763A-441]]
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
[[Page 114 STAT. 2763A-442]]
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;
[[Page 114 STAT. 2763A-443]]
``(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;
[[Page 114 STAT. 2763A-444]]
(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
[[Page 114 STAT. 2763A-445]]
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;
[[Page 114 STAT. 2763A-446]]
``(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.''.
[[Page 114 STAT. 2763A-447]]
(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.
[[Page 114 STAT. 2763A-448]]
``(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.''.
[[Page 114 STAT. 2763A-449]]
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
the 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,
[[Page 114 STAT. 2763A-450]]
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 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
[[Page 114 STAT. 2763A-451]]
``(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
[[Page 114 STAT. 2763A-452]]
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).
[[Page 114 STAT. 2763A-453]]
``(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
[[Page 114 STAT. 2763A-454]]
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 (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.''.
(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
[[Page 114 STAT. 2763A-455]]
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
[[Page 114 STAT. 2763A-456]]
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)''.
[[Page 114 STAT. 2763A-457]]
(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 the enactment of the
Commodity Futures Modernization Act of 2000).
[[Page 114 STAT. 2763A-458]]
(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 one or more payments indexed
to the value, level, or rate of, or providing for the delivery of, one
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 the 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
subparagraph (A), (B)(ii), or (C) of section 1a(12) of
the Commodity Exchange Act, as in effect on the date of
the 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.
[[Page 114 STAT. 2763A-459]]
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--
[[Page 114 STAT. 2763A-460]]
(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).
[[Page 114 STAT. 2763A-461]]
(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.
[[Page 114 STAT. 2763A-463]]
APPENDIX F--H.R. 5661
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.
[[Page 114 STAT. 2763A-464]]
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 two of the three 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. Five 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.
[[Page 114 STAT. 2763A-465]]
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. One-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. One-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.
[[Page 114 STAT. 2763A-466]]
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. One-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.
[[Page 114 STAT. 2763A-467]]
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. One-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''.
[[Page 114 STAT. 2763A-468]]
(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)--
[[Page 114 STAT. 2763A-469]]
(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.''.
[[Page 114 STAT. 2763A-470]]
(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.
[[Page 114 STAT. 2763A-471]]
(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
[[Page 114 STAT. 2763A-472]]
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.''.
[[Page 114 STAT. 2763A-473]]
(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.
[[Page 114 STAT. 2763A-474]]
``(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.--
[[Page 114 STAT. 2763A-475]]
(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
[[Page 114 STAT. 2763A-476]]
(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 nine demonstration projects, including the
following:
[[Page 114 STAT. 2763A-477]]
(A) Two projects for each of the four 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 two projects must target different ethnic
subpopulations.
(B) One project within the Pacific Islands.
(C) At least one 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.
[[Page 114 STAT. 2763A-478]]
(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.
[[Page 114 STAT. 2763A-479]]
(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.
[[Page 114 STAT. 2763A-480]]
(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).
[[Page 114 STAT. 2763A-481]]
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'';
[[Page 114 STAT. 2763A-482]]
(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
[[Page 114 STAT. 2763A-483]]
``(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'';
[[Page 114 STAT. 2763A-484]]
(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
[[Page 114 STAT. 2763A-485]]
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 TWO OF THE THREE 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 two of the three
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'';
[[Page 114 STAT. 2763A-486]]
(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.
[[Page 114 STAT. 2763A-487]]
(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-
[[Page 114 STAT. 2763A-488]]
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
[[Page 114 STAT. 2763A-489]]
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
[[Page 114 STAT. 2763A-490]]
(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 ).
[[Page 114 STAT. 2763A-491]]
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--
[[Page 114 STAT. 2763A-492]]
(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.
[[Page 114 STAT. 2763A-493]]
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
[[Page 114 STAT. 2763A-494]]
(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-
[[Page 114 STAT. 2763A-495]]
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:
[[Page 114 STAT. 2763A-496]]
``(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
[[Page 114 STAT. 2763A-497]]
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
[[Page 114 STAT. 2763A-498]]
(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.
[[Page 114 STAT. 2763A-499]]
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
[[Page 114 STAT. 2763A-500]]
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. FIVE 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.
[[Page 114 STAT. 2763A-501]]
(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.
[[Page 114 STAT. 2763A-502]]
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 one 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:
[[Page 114 STAT. 2763A-503]]
``(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
[[Page 114 STAT. 2763A-504]]
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
[[Page 114 STAT. 2763A-505]]
``(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.
[[Page 114 STAT. 2763A-506]]
(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.
[[Page 114 STAT. 2763A-507]]
(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).
[[Page 114 STAT. 2763A-508]]
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).
[[Page 114 STAT. 2763A-509]]
(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.--
[[Page 114 STAT. 2763A-510]]
``(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
[[Page 114 STAT. 2763A-511]]
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
[[Page 114 STAT. 2763A-512]]
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.
[[Page 114 STAT. 2763A-513]]
``(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
[[Page 114 STAT. 2763A-514]]
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).
[[Page 114 STAT. 2763A-515]]
``(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).
[[Page 114 STAT. 2763A-516]]
Subtitle C--Other Services
SEC. 421. ONE-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
[[Page 114 STAT. 2763A-517]]
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
[[Page 114 STAT. 2763A-518]]
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 one-
fourth) 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 one-half and
three-fourths,
[[Page 114 STAT. 2763A-519]]
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''.
[[Page 114 STAT. 2763A-520]]
(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
[[Page 114 STAT. 2763A-521]]
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.
[[Page 114 STAT. 2763A-522]]
(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
[[Page 114 STAT. 2763A-523]]
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--
[[Page 114 STAT. 2763A-524]]
(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.''.
[[Page 114 STAT. 2763A-525]]
(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.
[[Page 114 STAT. 2763A-526]]
``(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));
[[Page 114 STAT. 2763A-527]]
(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
[[Page 114 STAT. 2763A-528]]
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.
[[Page 114 STAT. 2763A-529]]
TITLE V--PROVISIONS RELATING TO PARTS A AND B
Subtitle A--Home Health Services
SEC. 501. ONE-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
[[Page 114 STAT. 2763A-530]]
(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
[[Page 114 STAT. 2763A-531]]
(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).
[[Page 114 STAT. 2763A-532]]
(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
[[Page 114 STAT. 2763A-533]]
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.''.
[[Page 114 STAT. 2763A-534]]
(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
[[Page 114 STAT. 2763A-535]]
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.
[[Page 114 STAT. 2763A-536]]
``(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
[[Page 114 STAT. 2763A-537]]
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
[[Page 114 STAT. 2763A-538]]
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
[[Page 114 STAT. 2763A-539]]
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
[[Page 114 STAT. 2763A-540]]
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)
[[Page 114 STAT. 2763A-541]]
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
[[Page 114 STAT. 2763A-542]]
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
[[Page 114 STAT. 2763A-543]]
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.
[[Page 114 STAT. 2763A-544]]
``(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,
[[Page 114 STAT. 2763A-545]]
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.
[[Page 114 STAT. 2763A-546]]
``(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.
[[Page 114 STAT. 2763A-547]]
``(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
[[Page 114 STAT. 2763A-548]]
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
[[Page 114 STAT. 2763A-549]]
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)).
[[Page 114 STAT. 2763A-550]]
(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).
[[Page 114 STAT. 2763A-551]]
(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.
[[Page 114 STAT. 2763A-552]]
(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;
[[Page 114 STAT. 2763A-553]]
(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).
[[Page 114 STAT. 2763A-554]]
(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--
[[Page 114 STAT. 2763A-555]]
(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).
[[Page 114 STAT. 2763A-556]]
(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
[[Page 114 STAT. 2763A-557]]
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
[[Page 114 STAT. 2763A-558]]
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)''.
[[Page 114 STAT. 2763A-559]]
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
[[Page 114 STAT. 2763A-560]]
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
[[Page 114 STAT. 2763A-561]]
(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:
[[Page 114 STAT. 2763A-562]]
``(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 one 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
[[Page 114 STAT. 2763A-563]]
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
[[Page 114 STAT. 2763A-564]]
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:
[[Page 114 STAT. 2763A-565]]
``(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).
[[Page 114 STAT. 2763A-566]]
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. ONE-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:
[[Page 114 STAT. 2763A-567]]
``(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.--
[[Page 114 STAT. 2763A-568]]
``(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
[[Page 114 STAT. 2763A-569]]
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
[[Page 114 STAT. 2763A-570]]
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.
[[Page 114 STAT. 2763A-571]]
(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
[[Page 114 STAT. 2763A-572]]
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
[[Page 114 STAT. 2763A-573]]
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
[[Page 114 STAT. 2763A-574]]
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
[[Page 114 STAT. 2763A-575]]
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
[[Page 114 STAT. 2763A-576]]
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).
[[Page 114 STAT. 2763A-577]]
(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. ONE-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)''.
[[Page 114 STAT. 2763A-578]]
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,
[[Page 114 STAT. 2763A-579]]
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 one 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
[[Page 114 STAT. 2763A-580]]
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
[[Page 114 STAT. 2763A-581]]
(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
[[Page 114 STAT. 2763A-582]]
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.''.
[[Page 114 STAT. 2763A-583]]
(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.
[[Page 114 STAT. 2763A-584]]
``(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''.
[[Page 114 STAT. 2763A-585]]
(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
[[Page 114 STAT. 2763A-586]]
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.
[[Page 114 STAT. 2763A-587]]
APPENDIX G--H.R. 5662
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.--The table of contents for this Act is as
follows:
Sec. 1. Short title; amendment of 1986 Code.
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 nine additional empowerment zones.
Sec. 112. Extension of empowerment zone treatment through 2009.
Sec. 113. Twenty 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.
[[Page 114 STAT. 2763A-588]]
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--TWO-YEAR EXTENSION OF AVAILABILITY OF MEDICAL SAVINGS ACCOUNTS
Sec. 201. Two-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.
[[Page 114 STAT. 2763A-589]]
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
[[Page 114 STAT. 2763A-590]]
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
[[Page 114 STAT. 2763A-591]]
``(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
[[Page 114 STAT. 2763A-592]]
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.
[[Page 114 STAT. 2763A-593]]
``(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--
[[Page 114 STAT. 2763A-594]]
``(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,
[[Page 114 STAT. 2763A-595]]
``(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.
[[Page 114 STAT. 2763A-596]]
``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
[[Page 114 STAT. 2763A-597]]
``(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
[[Page 114 STAT. 2763A-598]]
(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,
[[Page 114 STAT. 2763A-599]]
``(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
[[Page 114 STAT. 2763A-600]]
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.
[[Page 114 STAT. 2763A-601]]
``(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
[[Page 114 STAT. 2763A-602]]
``(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
[[Page 114 STAT. 2763A-603]]
``(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''.
[[Page 114 STAT. 2763A-604]]
(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''.
[[Page 114 STAT. 2763A-605]]
(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
[[Page 114 STAT. 2763A-606]]
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
[[Page 114 STAT. 2763A-607]]
``(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
[[Page 114 STAT. 2763A-608]]
``(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.
[[Page 114 STAT. 2763A-609]]
``(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:
[[Page 114 STAT. 2763A-610]]
``(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--
[[Page 114 STAT. 2763A-611]]
``(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.''.
[[Page 114 STAT. 2763A-612]]
(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
[[Page 114 STAT. 2763A-613]]
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--
[[Page 114 STAT. 2763A-614]]
(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
[[Page 114 STAT. 2763A-615]]
``(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
[[Page 114 STAT. 2763A-616]]
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.
[[Page 114 STAT. 2763A-617]]
``(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.''.
[[Page 114 STAT. 2763A-618]]
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,'';
[[Page 114 STAT. 2763A-619]]
(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).
[[Page 114 STAT. 2763A-620]]
``(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
[[Page 114 STAT. 2763A-621]]
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.
[[Page 114 STAT. 2763A-622]]
``(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'')
[[Page 114 STAT. 2763A-623]]
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
[[Page 114 STAT. 2763A-624]]
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
fuctions 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.
[[Page 114 STAT. 2763A-625]]
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
[[Page 114 STAT. 2763A-626]]
(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
[[Page 114 STAT. 2763A-627]]
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
[[Page 114 STAT. 2763A-628]]
(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--TWO-YEAR EXTENSION OF AVAILABILITY OF MEDICAL SAVINGS ACCOUNTS
SEC. 201. TWO-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.
[[Page 114 STAT. 2763A-629]]
(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 msa''.
(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 )).
[[Page 114 STAT. 2763A-630]]
(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.
[[Page 114 STAT. 2763A-631]]
(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:
[[Page 114 STAT. 2763A-632]]
(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
[[Page 114 STAT. 2763A-633]]
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.
[[Page 114 STAT. 2763A-634]]
``(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--
[[Page 114 STAT. 2763A-635]]
``(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
[[Page 114 STAT. 2763A-636]]
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
[[Page 114 STAT. 2763A-637]]
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
[[Page 114 STAT. 2763A-638]]
(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.--
[[Page 114 STAT. 2763A-639]]
(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.--
[[Page 114 STAT. 2763A-640]]
(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).--
[[Page 114 STAT. 2763A-641]]
(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
[[Page 114 STAT. 2763A-642]]
``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)''.
[[Page 114 STAT. 2763A-643]]
(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.--
[[Page 114 STAT. 2763A-644]]
(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:
[[Page 114 STAT. 2763A-645]]
``(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.--
[[Page 114 STAT. 2763A-646]]
(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)''.
[[Page 114 STAT. 2763A-647]]
(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''.
[[Page 114 STAT. 2763A-648]]
(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--
[[Page 114 STAT. 2763A-649]]
(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
[[Page 114 STAT. 2763A-650]]
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.''.
[[Page 114 STAT. 2763A-651]]
( j) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
[[Page 114 STAT. 2763A-653]]
APPENDIX H--H.R. 5663
SECTION 1. 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--
[[Page 114 STAT. 2763A-654]]
``(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
[[Page 114 STAT. 2763A-655]]
``(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
[[Page 114 STAT. 2763A-656]]
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
[[Page 114 STAT. 2763A-657]]
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--
[[Page 114 STAT. 2763A-658]]
``(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 be 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
[[Page 114 STAT. 2763A-659]]
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
[[Page 114 STAT. 2763A-660]]
``(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).
[[Page 114 STAT. 2763A-661]]
``(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
Market 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 a 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 REQUIREMENT.
``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.
[[Page 114 STAT. 2763A-662]]
``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.
``(d) 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.
[[Page 114 STAT. 2763A-663]]
``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,
[[Page 114 STAT. 2763A-664]]
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
[[Page 114 STAT. 2763A-665]]
``(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.''.
[[Page 114 STAT. 2763A-666]]
SEC. 2. 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.''.
[[Page 114 STAT. 2763A-667]]
APPENDIX I--H.R. 5667
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.
[[Page 114 STAT. 2763A-668]]
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
SEC. 101. 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;
[[Page 114 STAT. 2763A-669]]
(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
[[Page 114 STAT. 2763A-670]]
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 the 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 the 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--
[[Page 114 STAT. 2763A-671]]
``(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 the 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
[[Page 114 STAT. 2763A-672]]
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,
[[Page 114 STAT. 2763A-673]]
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 the 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 the 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 the 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 the 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));
[[Page 114 STAT. 2763A-674]]
``(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.
[[Page 114 STAT. 2763A-675]]
``(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;
[[Page 114 STAT. 2763A-676]]
``(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 one 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
[[Page 114 STAT. 2763A-677]]
``(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.
[[Page 114 STAT. 2763A-678]]
``(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 the 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
[[Page 114 STAT. 2763A-679]]
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 one 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
[[Page 114 STAT. 2763A-680]]
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--
[[Page 114 STAT. 2763A-681]]
``(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),''.
[[Page 114 STAT. 2763A-682]]
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.
[[Page 114 STAT. 2763A-683]]
``(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.''.
[[Page 114 STAT. 2763A-684]]
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.''.
[[Page 114 STAT. 2763A-685]]
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--
[[Page 114 STAT. 2763A-686]]
``(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--
[[Page 114 STAT. 2763A-687]]
``(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.--
[[Page 114 STAT. 2763A-688]]
``(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.--
[[Page 114 STAT. 2763A-689]]
``(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
the 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.
[[Page 114 STAT. 2763A-690]]
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 one 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''.
[[Page 114 STAT. 2763A-691]]
(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);
[[Page 114 STAT. 2763A-692]]
``(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).
[[Page 114 STAT. 2763A-693]]
``(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:
[[Page 114 STAT. 2763A-694]]
``(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
[[Page 114 STAT. 2763A-695]]
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
[[Page 114 STAT. 2763A-696]]
``(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 one
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''.
[[Page 114 STAT. 2763A-697]]
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 one 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 one or more
Indian tribal governments, or by a corporation
that is wholly owned by one or more Indian tribal
governments; or
``(ii) that is owned in part by one or more
Indian tribal governments, or by a corporation
that is wholly owned by one 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
[[Page 114 STAT. 2763A-698]]
by one 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 the enactment of this
paragraph, unless that tribe is
recognized after that date of the
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 the 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 the 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
[[Page 114 STAT. 2763A-699]]
(as in effect on the date of the
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
[[Page 114 STAT. 2763A-700]]
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 one or more community
development corporations, if all other owners are
either United States citizens or small business
concerns.''; and
[[Page 114 STAT. 2763A-701]]
(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 one or more public or
private entities.''.
[[Page 114 STAT. 2763A-702]]
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 the
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--
[[Page 114 STAT. 2763A-703]]
(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
[[Page 114 STAT. 2763A-704]]
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:
[[Page 114 STAT. 2763A-705]]
``(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
[[Page 114 STAT. 2763A-706]]
(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.--
[[Page 114 STAT. 2763A-707]]
``(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
[[Page 114 STAT. 2763A-708]]
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 one 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 two 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);
[[Page 114 STAT. 2763A-709]]
``(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--
[[Page 114 STAT. 2763A-710]]
``(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.''.
Motion to reconsider laid on the table Agreed to without objection.
Conference report filed: Conference report H. Rept. 106-1033 filed.(consideration: CR H12100-12439; text of conference report: CR H12100-12439)
Conference report H. Rept. 106-1033 filed. (consideration: CR H12100-12439; text of conference report: CR H12100-12439)
ORDER OF BUSINESS - Mr. Young of Florida asked unanimous consent that it shall be in order at any time on the legislative day of December 15, 2000 to call up the conference report on H.R. 4577; that the conference report shall be considered as read when called up; that all points of order against the conference report and against its consideration be waived; and that debate on the conference report shall continue for not to exceed 90 minutes, equally divided and controlled. Agreed to without objection.
Mr. Young (FL) brought up conference report H. Rept. 106-1033 by previously agreed to special order.
DEBATE - Pursuant to a previous special order, the House proceeded with 90 minutes of debate on the conference report, equally divided and controlled. (consideration: CR H12100-12439, H12442-12502)
DEBATE - The House continued with debate on the conference report.
The previous question was ordered without objection.
Conference report agreed to in House: On agreeing to the conference report Agreed to by the Yeas and Nays: 292 - 60 (Roll no. 603).
Enacted as Public Law 106-554
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Motions to reconsider laid on the table Agreed to without objection.
On agreeing to the conference report Agreed to by the Yeas and Nays: 292 - 60 (Roll no. 603).
Roll Call #603 (House)Conference report agreed to in Senate: Senate agreed to conference report by Unanimous Consent.(consideration: CR S11855-11885)
Senate agreed to conference report by Unanimous Consent. (consideration: CR S11855-11885)
Message on Senate action sent to the House.
Presented to President.
Presented to President.
Signed by President.
Signed by President.
Became Public Law No: 106-554.
Became Public Law No: 106-554.