[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 333 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 333

  To provide tax and regulatory relief for farmers and to improve the 
 competitiveness of American agricultural commodities and products in 
                            global markets.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 14, 2001

  Mr. Lugar (for himself, Mr. Roberts, Mr. McConnell, and Mr. Burns) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To provide tax and regulatory relief for farmers and to improve the 
 competitiveness of American agricultural commodities and products in 
                            global markets.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Rural America 
Prosperity Act of 2001''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
                    TITLE I--TAX RELIEF FOR FARMERS

                   Subtitle A--General Tax Provisions

Sec. 101. Deduction for 100 percent of health insurance costs of self-
                            employed individuals.
Sec. 102. Exclusion of gain from sale of farmland.
Sec. 103. Income averaging for farmers not to increase alternative 
                            minimum tax liability.
Sec. 104. Farm and ranch risk management accounts.
                 Subtitle B--Estate and Gift Tax Relief

Sec. 111. Repeal of estate, gift, and generation-skipping taxes.
Sec. 112. Termination of step up in basis at death.
Sec. 113. Carryover basis at death.
Sec. 114. Additional reductions of estate and gift tax rates.
Sec. 115. Unified credit against estate and gift taxes replaced with 
                            unified exemption amount.
Sec. 116. Deemed allocation of GST exemption to lifetime transfers to 
                            trusts; retroactive allocations.
Sec. 117. Severing of trusts.
Sec. 118. Modification of certain valuation rules.
Sec. 119. Relief provisions.
Sec. 120. Expansion of estate tax rule for conservation easements.
   TITLE II--STUDY OF COSTS OF REGULATIONS ON FARMERS, RANCHERS, AND 
                               FORESTERS

Sec. 201. Comptroller General study of regulations.
Sec. 202. Response of Secretary of Agriculture.
  TITLE III--EXTENSION OF TRADE AUTHORITIES PROCEDURES FOR RECIPROCAL 
                            TRADE AGREEMENTS

Sec. 301. Short title.
Sec. 302. Trade negotiating objectives.
Sec. 303. Trade agreements authority.
Sec. 304. Consultations.
Sec. 305. Implementation of trade agreements.
Sec. 306. Treatment of certain trade agreements.
Sec. 307. Conforming amendments.
Sec. 308. Definitions.
                  TITLE IV--AGRICULTURAL TRADE FREEDOM

Sec. 401. Short title.
Sec. 402. Definitions.
Sec. 403. Agricultural commodities, livestock, and products exempt from 
                            unilateral agricultural sanctions.
Sec. 404. Sale or barter of food assistance.

                    TITLE I--TAX RELIEF FOR FARMERS

                   Subtitle A--General Tax Provisions

SEC. 101. DEDUCTION FOR 100 PERCENT OF HEALTH INSURANCE COSTS OF SELF-
              EMPLOYED INDIVIDUALS.

    (a) In General.--Paragraph (1) of section 162(l) of the Internal 
Revenue Code of 1986 (relating to special rules for health insurance 
costs of self-employed individuals) is amended to read as follows:
            ``(1) Allowance of deduction.--In the case of an individual 
        who is an employee within the meaning of section 401(c)(1), 
        there shall be allowed as a deduction under this section an 
        amount equal to 100 percent of the amount paid during the 
        taxable year for insurance which constitutes medical care for 
        the taxpayer, his spouse, and dependents.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2001.

SEC. 102. EXCLUSION OF GAIN FROM SALE OF FARMLAND.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to items specifically excluded 
from gross income) is amended by inserting after section 121 the 
following:

``SEC. 121A. EXCLUSION OF GAIN FROM SALE OF QUALIFIED FARM PROPERTY.

    ``(a) Exclusion.--In the case of a natural person, gross income 
shall not include gain from the sale or exchange of qualified farm 
property.
    ``(b) Limitation.--
            ``(1) In general.--The amount of gain excluded from gross 
        income under subsection (a) with respect to any taxable year 
        shall not exceed $500,000 ($250,000 in the case of a married 
        individual filing a separate return), reduced by the aggregate 
        amount of gain excluded under subsection (a) for all preceding 
        taxable years.
            ``(2) Special rule for joint returns.--The amount of the 
        exclusion under subsection (a) on a joint return for any 
        taxable year shall be allocated equally between the spouses for 
        purposes of applying the limitation under paragraph (1) for any 
        succeeding taxable year.
    ``(c) Qualified Farm Property.--For purposes of this section--
            ``(1) In general.--The term `qualified farm property' means 
        real property located in the United States if, during periods 
        aggregating 3 years or more of the 5-year period ending on the 
        date of the sale or exchange of such real property--
                    ``(A) such real property was used by the taxpayer 
                or a member of the family of the taxpayer as a farm for 
                farming purposes, and
                    ``(B) there was material participation by the 
                taxpayer (or such a member) in the operation of the 
                farm.
            ``(2) Other definitions.--The terms `member of the family', 
        `farm', and `farming purposes' have the respective meanings 
        given such terms by paragraphs (2), (4), and (5) of section 
        2032A(e).
            ``(3) Special rules.--Rules similar to the rules of 
        paragraphs (4) and (5) of section 2032A(b) and paragraphs (3) 
        and (6) of section 2032A(e) shall apply.
    ``(d) Other Rules.--For purposes of this section, rules similar to 
the rules of subsection (e) and subsection (f) of section 121 shall 
apply.''.
    (b) Conforming Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of the Internal Revenue Code of 1986 is 
amended by inserting after the item relating to section 121 the 
following:

                              ``Sec. 121A. Exclusion of gain from sale 
                                        of qualified farm property.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to any sale or exchange after the date of enactment of this Act 
in taxable years ending after such date.

SEC. 103. INCOME AVERAGING FOR FARMERS NOT TO INCREASE ALTERNATIVE 
              MINIMUM TAX LIABILITY.

    (a) In General.--Section 55(c) of the Internal Revenue Code of 1986 
(defining regular tax) is amended by redesignating paragraph (2) as 
paragraph (3) and by inserting after paragraph (1) the following:
            ``(2) Coordination with income averaging for farmers.--
        Solely for purposes of this section, section 1301 (relating to 
        averaging of farm income) shall not apply in computing the 
        regular tax.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 1997.

SEC. 104. FARM AND RANCH RISK MANAGEMENT ACCOUNTS.

    (a) In General.--Subpart C of part II of subchapter E of chapter 1 
of the Internal Revenue Code of 1986 (relating to taxable year for 
which deductions taken) is amended by inserting after section 468B the 
following:

``SEC. 468C. FARM AND RANCH RISK MANAGEMENT ACCOUNTS.

    ``(a) Deduction Allowed.--In the case of an individual engaged in 
an eligible farming business, there shall be allowed as a deduction for 
any taxable year the amount paid in cash by the taxpayer during the 
taxable year to a Farm and Ranch Risk Management Account (hereinafter 
referred to as the `FARRM Account').
    ``(b) Limitation.--The amount which a taxpayer may pay into the 
FARRM Account for any taxable year shall not exceed 20 percent of so 
much of the taxable income of the taxpayer (determined without regard 
to this section) which is attributable (determined in the manner 
applicable under section 1301) to any eligible farming business.
    ``(c) Eligible Farming Business.--For purposes of this section, the 
term `eligible farming business' means any farming business (as defined 
in section 263A(e)(4)) which is not a passive activity (within the 
meaning of section 469(c)) of the taxpayer.
    ``(d) FARRM Account.--For purposes of this section--
            ``(1) In general.--The term `FARRM Account' means a trust 
        created or organized in the United States for the exclusive 
        benefit of the taxpayer, but only if the written governing 
        instrument creating the trust meets the following requirements:
                    ``(A) No contribution will be accepted for any 
                taxable year in excess of the amount allowed as a 
                deduction under subsection (a) for such year.
                    ``(B) The trustee is a bank (as defined in section 
                408(n)) or another person who demonstrates to the 
                satisfaction of the Secretary that the manner in which 
                such person will administer the trust will be 
                consistent with the requirements of this section.
                    ``(C) The assets of the trust consist entirely of 
                cash or of obligations which have adequate stated 
                interest (as defined in section 1274(c)(2)) and which 
                pay such interest not less often than annually.
                    ``(D) All income of the trust is distributed 
                currently to the grantor.
                    ``(E) The assets of the trust will not be 
                commingled with other property except in a common trust 
                fund or common investment fund.
            ``(2) Account taxed as grantor trust.--The grantor of a 
        FARRM Account shall be treated for purposes of this title as 
        the owner of such Account and shall be subject to tax thereon 
        in accordance with subpart E of part I of subchapter J of this 
        chapter (relating to grantors and others treated as substantial 
        owners).
    ``(e) Inclusion of Amounts Distributed.--
            ``(1) In general.--Except as provided in paragraph (2), 
        there shall be includible in the gross income of the taxpayer 
        for any taxable year--
                    ``(A) any amount distributed from a FARRM Account 
                of the taxpayer during such taxable year, and
                    ``(B) any deemed distribution under--
                            ``(i) subsection (f)(1) (relating to 
                        deposits not distributed within 5 years),
                            ``(ii) subsection (f)(2) (relating to 
                        cessation in eligible farming business), and
                            ``(iii) subparagraph (A) or (B) of 
                        subsection (f)(3) (relating to prohibited 
                        transactions and pledging account as security).
            ``(2) Exceptions.--Paragraph (1)(A) shall not apply to--
                    ``(A) any distribution to the extent attributable 
                to income of the Account, and
                    ``(B) the distribution of any contribution paid 
                during a taxable year to a FARRM Account to the extent 
                that such contribution exceeds the limitation 
                applicable under subsection (b) if requirements similar 
                to the requirements of section 408(d)(4) are met.
        For purposes of subparagraph (A), distributions shall be 
        treated as first attributable to income and then to other 
        amounts.
    ``(f) Special Rules.--
            ``(1) Tax on deposits in account which are not distributed 
        within 5 years.--
                    ``(A) In general.--If, at the close of any taxable 
                year, there is a nonqualified balance in any FARRM 
                Account--
                            ``(i) there shall be deemed distributed 
                        from such Account during such taxable year an 
                        amount equal to such balance, and
                            ``(ii) the taxpayer's tax imposed by this 
                        chapter for such taxable year shall be 
                        increased by 10 percent of such deemed 
                        distribution.
                The preceding sentence shall not apply if an amount 
                equal to such nonqualified balance is distributed from 
                such Account to the taxpayer before the due date 
(including extensions) for filing the return of tax imposed by this 
chapter for such year (or, if earlier, the date the taxpayer files such 
return for such year).
                    ``(B) Nonqualified balance.--For purposes of 
                subparagraph (A), the term `nonqualified balance' means 
                any balance in the Account on the last day of the 
                taxable year which is attributable to amounts deposited 
                in such Account before the 4th preceding taxable year.
                    ``(C) Ordering rule.--For purposes of this 
                paragraph, distributions from a FARRM Account (other 
                than distributions of current income) shall be treated 
                as made from deposits in the order in which such 
                deposits were made, beginning with the earliest 
                deposits.
            ``(2) Cessation in eligible business.--At the close of the 
        first disqualification period after a period for which the 
        taxpayer was engaged in an eligible farming business, there 
        shall be deemed distributed from the FARRM Account of the 
        taxpayer an amount equal to the balance in such Account (if 
        any) at the close of such disqualification period. For purposes 
        of the preceding sentence, the term `disqualification period' 
        means any period of 2 consecutive taxable years for which the 
        taxpayer is not engaged in an eligible farming business.
            ``(3) Certain rules to apply.--Rules similar to the 
        following rules shall apply for purposes of this section:
                    ``(A) Section 220(f)(8) (relating to treatment on 
                death).
                    ``(B) Section 408(e)(2) (relating to loss of 
                exemption of account where individual engages in 
                prohibited transaction).
                    ``(C) Section 408(e)(4) (relating to effect of 
                pledging account as security).
                    ``(D) Section 408(g) (relating to community 
                property laws).
                    ``(E) Section 408(h) (relating to custodial 
                accounts).
            ``(4) Time when payments deemed made.--For purposes of this 
        section, a taxpayer shall be deemed to have made a payment to a 
        FARRM Account on the last day of a taxable year if such payment 
        is made on account of such taxable year and is made on or 
        before the due date (without regard to extensions) for filing 
        the return of tax for such taxable year.
            ``(5) Individual.--For purposes of this section, the term 
        `individual' shall not include an estate or trust.
            ``(6) Deduction not allowed for self-employment tax.--The 
        deduction allowable by reason of subsection (a) shall not be 
        taken into account in determining an individual's net earnings 
        from self-employment (within the meaning of section 1402(a)) 
        for purposes of chapter 2.
    ``(g) Reports.--The trustee of a FARRM Account shall make such 
reports regarding such Account to the Secretary and to the person for 
whose benefit the Account is maintained with respect to contributions, 
distributions, and such other matters as the Secretary may require 
under regulations. The reports required by this subsection shall be 
filed at such time and in such manner and furnished to such persons at 
such time and in such manner as may be required by such regulations.''.
    (b) Tax on Excess Contributions.--
            (1) Subsection (a) of section 4973 of the Internal Revenue 
        Code of 1986 (relating to tax on excess contributions to 
        certain tax-favored accounts and annuities) is amended by 
        striking ``or'' at the end of paragraph (3), by redesignating 
        paragraph (4) as paragraph (5), and by inserting after 
        paragraph (3) the following:
            ``(4) a FARRM Account (within the meaning of section 
        468C(d)), or''.
            (2) Section 4973 of such Code, is amended by adding at the 
        end the following:
    ``(g) Excess Contributions to FARRM Accounts.--For purposes of this 
section, in the case of a FARRM Account (within the meaning of section 
468C(d)), the term `excess contributions' means the amount by which the 
amount contributed for the taxable year to the Account exceeds the 
amount which may be contributed to the Account under section 468C(b) 
for such taxable year. For purposes of this subsection, any 
contribution which is distributed out of the FARRM Account in a 
distribution to which section 468C(e)(2)(B) applies shall be treated as 
an amount not contributed.''.
            (3) The section heading for section 4973 of such Code is 
        amended to read as follows:

``SEC. 4973. EXCESS CONTRIBUTIONS TO CERTAIN ACCOUNTS, ANNUITIES, 
              ETC.''.

            (4) The table of sections for chapter 43 of such Code is 
        amended by striking the item relating to section 4973 and 
        inserting the following:

                              ``Sec. 4973. Excess contributions to 
                                        certain accounts, annuities, 
                                        etc.''.
    (c) Tax on Prohibited Transactions.--
            (1) Subsection (c) of section 4975 of the Internal Revenue 
        Code of 1986 (relating to tax on prohibited transactions) is 
        amended by adding at the end the following:
            ``(6) Special rule for farrm accounts.--A person for whose 
        benefit a FARRM Account (within the meaning of section 468C(d)) 
        is established shall be exempt from the tax imposed by this 
        section with respect to any transaction concerning such account 
        (which would otherwise be taxable under this section) if, with 
        respect to such transaction, the account ceases to be a FARRM 
        Account by reason of the application of section 468C(f)(3)(A) 
        to such account.''.
            (2) Paragraph (1) of section 4975(e) of such Code is 
        amended by redesignating subparagraphs (E) and (F) as 
        subparagraphs (F) and (G), respectively, and by inserting after 
        subparagraph (D) the following:
                    ``(E) a FARRM Account described in section 
                468C(d),''.
    (d) Failure To Provide Reports on FARRM Accounts.--Paragraph (2) of 
section 6693(a) of the Internal Revenue Code of 1986 (relating to 
failure to provide reports on certain tax-favored accounts or 
annuities) is amended by redesignating subparagraphs (C) and (D) as 
subparagraphs (D) and (E), respectively, and by inserting after 
subparagraph (B) the following:
                    ``(C) section 468C(g) (relating to FARRM 
                Accounts),''.
    (e) Clerical Amendment.--The table of sections for subpart C of 
part II of subchapter E of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 468B 
the following:

                              ``Sec. 468C. Farm and Ranch Risk 
                                        Management Accounts.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2001.

                 Subtitle B--Estate and Gift Tax Relief

SEC. 111. REPEAL OF ESTATE, GIFT, AND GENERATION-SKIPPING TAXES.

    (a) In General.--Subtitle B of the Internal Revenue Code of 1986 is 
hereby repealed.
    (b) Effective Date.--The repeal made by subsection (a) shall apply 
to the estates of decedents dying, and gifts and generation-skipping 
transfers made, after December 31, 2010.

SEC. 112. TERMINATION OF STEP UP IN BASIS AT DEATH.

    (a) Termination of Application of Section 1014.--Section 1014 of 
the Internal Revenue Code of 1986 (relating to basis of property 
acquired from a decedent) is amended by adding at the end the 
following:
    ``(f) Termination.--In the case of a decedent dying after December 
31, 2010, this section shall not apply to property for which basis is 
provided by section 1022.''.
    (b) Conforming Amendment.--Subsection (a) of section 1016 of the 
Internal Revenue Code of 1986 (relating to adjustments to basis) is 
amended by striking ``and'' at the end of paragraph (26), by striking 
the period at the end of paragraph (27) and inserting ``, and'', and by 
adding at the end the following:
            ``(28) to the extent provided in section 1022 (relating to 
        basis for certain property acquired from a decedent dying after 
        December 31, 2010).''.

SEC. 113. CARRYOVER BASIS AT DEATH.

    (a) General Rule.--Part II of subchapter O of chapter 1 of the 
Internal Revenue Code of 1986 (relating to basis rules of general 
application) is amended by inserting after section 1021 the following 
new section:

``SEC. 1022. CARRYOVER BASIS FOR CERTAIN PROPERTY ACQUIRED FROM A 
              DECEDENT DYING AFTER DECEMBER 31, 2010.

    ``(a) Carryover Basis.--Except as otherwise provided in this 
section, the basis of carryover basis property in the hands of a person 
acquiring such property from a decedent shall be determined under 
section 1015.
    ``(b) Carryover Basis Property Defined.--
            ``(1) In general.--For purposes of this section, the term 
        `carryover basis property' means any property--
                    ``(A) which is acquired from or passed from a 
                decedent who died after December 31, 2010, and
                    ``(B) which is not excluded pursuant to paragraph 
                (2).
        The property taken into account under subparagraph (A) shall be 
        determined under section 1014(b) without regard to subparagraph 
        (A) of the last sentence of paragraph (9) thereof.
            ``(2) Certain property not carryover basis property.--The 
        term `carryover basis property' does not include--
                    ``(A) any item of gross income in respect of a 
                decedent described in section 691,
                    ``(B) property of the decedent to the extent that 
                the aggregate adjusted fair market value of such 
                property does not exceed $1,300,000, and
                    ``(C) property which was acquired from the decedent 
                by the surviving spouse of the decedent (and which 
                would be carryover basis property without regard to 
                this subparagraph) but only if the value of such 
                property would have been deductible from the value of 
                the taxable estate of the decedent under section 2056, 
                as in effect on the day before the date of enactment of 
                the Rural America Prosperity Act of 2001.
        For purposes of this subsection, the term `adjusted fair market 
        value' means, with respect to any property, fair market value 
        reduced by any indebtedness secured by such property.
            ``(3) Limitation on exception for property acquired by 
        surviving spouse.--The adjusted fair market value of property 
        which is not carryover basis property by reason of paragraph 
        (2)(C) shall not exceed $3,000,000.
            ``(4) Allocation of excepted amounts.--The executor shall 
        allocate the limitations under paragraphs (2)(B) and (3).
            ``(5) Inflation adjustment of excepted amounts.--In the 
        case of decedents dying in a calendar year after 2011, the 
        dollar amounts in paragraphs (2)(B) and (3) shall each be 
        increased by an amount equal to the product of--
                    ``(A) such dollar amount, and
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for such calendar year, 
                determined by substituting `2010' for `1992' in 
                subparagraph (B) thereof.
        If any increase determined under the preceding sentence is not 
        a multiple of $10,000, such increase shall be rounded to the 
        nearest multiple of $10,000.
    ``(c) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary to carry out the purposes of this section.''.
    (b) Miscellaneous Amendments Related To Carryover Basis.--
            (1) Capital gain treatment for inherited art work or 
        similar property.--
                    (A) In general.--Subparagraph (C) of section 
                1221(a)(3) of the Internal Revenue Code of 1986 
                (defining capital asset) is amended by inserting 
                ``(other than by reason of section 1022)'' after ``is 
                determined''.
                    (B) Coordination with section 170.--Paragraph (1) 
                of section 170(e) of such Code (relating to certain 
                contributions of ordinary income and capital gain 
                property) is amended by adding at the end the 
                following: ``For purposes of this paragraph, the 
                determination of whether property is a capital asset 
                shall be made without regard to the exception contained 
                in section 1221(a)(3)(C) for basis determined under 
                section 1022.''.
            (2) Definition of executor.--Section 7701(a) of such Code 
        (relating to definitions) is amended by adding at the end the 
        following:
            ``(47) Executor.--The term `executor' means the executor or 
        administrator of the decedent, or, if there is no executor or 
        administrator appointed, qualified, and acting within the 
        United States, then any person in actual or constructive 
        possession of any property of the decedent.''.
            (3) Clerical amendment.--The table of sections for part II 
        of subchapter O of chapter 1 of such Code is amended by adding 
        at the end the following new item:

                              ``Sec. 1022. Carryover basis for certain 
                                        property acquired from a 
                                        decedent dying after December 
                                        31, 2010.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to estates of decedents dying after December 31, 2010.

SEC. 114. ADDITIONAL REDUCTIONS OF ESTATE AND GIFT TAX RATES.

    (a) Maximum Rate of Tax Reduced to 50 Percent.--
            (1) In general.--The table contained in section 2001(c)(1) 
        of the Internal Revenue Code of 1986 is amended by striking the 
        two highest brackets and inserting the following:

    ``Over $2,500,000..............
                                        $1,025,800, plus 50% of the 
                                                excess over 
                                                $2,500,000.''.
            (2) Phase-in of reduced rate.--Subsection (c) of section 
        2001 of such Code is amended by adding at the end the following 
        new paragraph:
            ``(3) Phase-in of reduced rate.--In the case of decedents 
        dying, and gifts made, during 2002, the last item in the table 
        contained in paragraph (1) shall be applied by substituting 
        `53%' for `50%'.''.
    (b) Repeal of Phaseout of Graduated Rates.--Subsection (c) of 
section 2001 of the Internal Revenue Code of 1986 is amended by 
striking paragraph (2) and redesignating paragraph (3), as added by 
subsection (a), as paragraph (2).
    (c) Additional Reductions of Rates of Tax.--Subsection (c) of 
section 2001 of the Internal Revenue Code of 1986, as so amended, is 
amended by adding at the end the following new paragraph:
            ``(3) Phasedown of tax.--In the case of estates of 
        decedents dying, and gifts made, during any calendar year after 
        2003 and before 2011--
                    ``(A) In general.--Except as provided in 
                subparagraph (C), the tentative tax under this 
                subsection shall be determined by using a table 
                prescribed by the Secretary (in lieu of using the table 
                contained in paragraph (1)) which is the same as such 
                table; except that--
                            ``(i) each of the rates of tax shall be 
                        reduced by the number of percentage points 
                        determined under subparagraph (B), and
                            ``(ii) the amounts setting forth the tax 
                        shall be adjusted to the extent necessary to 
                        reflect the adjustments under clause (i).
                    ``(B) Percentage points of reduction.--
                  
                                                        The number of  
                ``For calendar year:
                                                  percentage points is:
                    2004...................................        1.0 
                    2005...................................        2.0 
                    2006...................................        3.0 
                    2007...................................        4.0 
                    2008...................................        5.5 
                    2009...................................        7.5 
                    2010...................................        9.5.
                    ``(C) Coordination with income tax rates.--The 
                reductions under subparagraph (A)--
                            ``(i) shall not reduce any rate under 
                        paragraph (1) below the lowest rate in section 
                        1(c), and
                            ``(ii) shall not reduce the highest rate 
                        under paragraph (1) below the highest rate in 
                        section 1(c).
                    ``(D) Coordination with credit for state death 
                taxes.--Rules similar to the rules of subparagraph (A) 
                shall apply to the table contained in section 2011(b) 
                except that the Secretary shall prescribe percentage 
                point reductions which maintain the proportionate 
                relationship (as in effect before any reduction under 
                this paragraph) between the credit under section 2011 
                and the tax rates under subsection (c).''.
    (d) Effective Dates.--
            (1) Subsections (a) and (b).--The amendments made by 
        subsections (a) and (b) shall apply to estates of decedents 
        dying, and gifts made, after December 31, 2001.
            (2) Subsection (c).--The amendment made by subsection (c) 
        shall apply to estates of decedents dying, and gifts made, 
        after December 31, 2003.

SEC. 115. UNIFIED CREDIT AGAINST ESTATE AND GIFT TAXES REPLACED WITH 
              UNIFIED EXEMPTION AMOUNT.

    (a) In General.--
            (1) Estate tax.--Subsection (b) of section 2001 of the 
        Internal Revenue Code of 1986 (relating to computation of tax) 
        is amended to read as follows:
    ``(b) Computation of Tax.--
            ``(1) In general.--The tax imposed by this section shall be 
        the amount equal to the excess (if any) of--
                    ``(A) the tentative tax determined under paragraph 
                (2), over
                    ``(B) the aggregate amount of tax which would have 
                been payable under chapter 12 with respect to gifts 
                made by the decedent after December 31, 1976, if the 
                provisions of subsection (c) (as in effect at the 
                decedent's death) had been applicable at the time of 
                such gifts.
            ``(2) Tentative tax.--For purposes of paragraph (1), the 
        tentative tax determined under this paragraph is a tax computed 
under subsection (c) on the excess of--
                    ``(A) the sum of--
                            ``(i) the amount of the taxable estate, and
                            ``(ii) the amount of the adjusted taxable 
                        gifts, over
                    ``(B) the exemption amount for the calendar year in 
                which the decedent died.
            ``(3) Exemption amount.--For purposes of paragraph (2), the 
        term `exemption amount' means the amount determined in 
        accordance with the following table:

        ``In the case of
                                                          The exemption
          calendar year:
                                                             amount is:
                <DELETED>2001........................         $675,000 
                </DELETED>2002 and 2003..............         $700,000 
                2003.................................         $850,000 
                2005.................................         $950,000 
                2006 or thereafter...................       $1,000,000.
            ``(4) Adjusted taxable gifts.--For purposes of paragraph 
        (2), the term `adjusted taxable gifts' means the total amount 
        of the taxable gifts (within the meaning of section 2503) made 
        by the decedent after December 31, 1976, other than gifts which 
        are includible in the gross estate of the decedent.''.
            (2) Gift tax.--Subsection (a) of section 2502 of such Code 
        (relating to computation of tax) is amended to read as follows:
    ``(a) Computation of Tax.--
            ``(1) In general.--The tax imposed by section 2501 for each 
        calendar year shall be the amount equal to the excess (if any) 
        of--
                    ``(A) the tentative tax determined under paragraph 
                (2), over
                    ``(B) the tax paid under this section for all prior 
                calendar periods.
            ``(2) Tentative tax.--For purposes of paragraph (1), the 
        tentative tax determined under this paragraph for a calendar 
        year is a tax computed under section 2001(c) on the excess of--
                    ``(A) the aggregate sum of the taxable gifts for 
                such calendar year and for each of the preceding 
                calendar periods, over
                    ``(B) the exemption amount under section 2001(b)(3) 
                for such calendar year.''.
    (b) Repeal of Unified Credits.--
            (1) Section 2010 of the Internal Revenue Code of 1986 
        (relating to unified credit against estate tax) is hereby 
        repealed.
            (2) Section 2505 of such Code (relating to unified credit 
        against gift tax) is hereby repealed.
    (c) Conforming Amendments.--
            (1)(A) Subsection (b) of section 2011 of the Internal 
        Revenue Code of 1986 is amended--
                    (i) by striking ``adjusted'' in the table; and
                    (ii) by striking the last sentence.
            (B) Subsection (f) of section 2011 of such Code is amended 
        by striking ``, reduced by the amount of the unified credit 
        provided by section 2010''.
            (2) Subsection (a) of section 2012 of such Code is amended 
        by striking ``and the unified credit provided by section 
        2010''.
            (3) Subparagraph (A) of section 2013(c)(1) of such Code is 
        amended by striking ``2010,''.
            (4) Paragraph (2) of section 2014(b) of such Code is 
        amended by striking ``2010, 2011,'' and inserting ``2011''.
            (5) Clause (ii) of section 2056A(b)(12)(C) of such Code is 
        amended to read as follows:
                            ``(ii) to treat any reduction in the tax 
                        imposed by paragraph (1)(A) by reason of the 
                        credit allowable under section 2010 (as in 
                        effect on the day before the date of enactment 
                        of the Rural America Prosperity Act of 2001) or 
                        the exemption amount allowable under section 
                        2001(b) with respect to the decedent as a 
                        credit under section 2505 (as so in effect) or 
                        exemption under section 2521 (as the case may 
                        be) allowable to such surviving spouse for 
                        purposes of determining the amount of the 
                        exemption allowable under section 2521 with 
                        respect to taxable gifts made by the surviving 
                        spouse during the year in which the spouse 
                        becomes a citizen or any subsequent year,''.
            (6) Subsection (a) of section 2057 of such Code is amended 
        by striking paragraphs (2) and (3) and inserting the following 
        new paragraph:
            ``(2) Maximum deduction.--The deduction allowed by this 
        section shall not exceed the excess of $1,300,000 over the 
        exemption amount (as defined in section 2001(b)(3)).''.
            (7)(A) Subsection (b) of section 2101 of such Code is 
        amended to read as follows:
    ``(b) Computation of Tax.--
            ``(1) In general.--The tax imposed by this section shall be 
        the amount equal to the excess (if any) of--
                    ``(A) the tentative tax determined under paragraph 
                (2), over
                    ``(B) a tentative tax computed under section 
                2001(c) on the amount of the adjusted taxable gifts.
            ``(2) Tentative tax.--For purposes of paragraph (1), the 
        tentative tax determined under this paragraph is a tax computed 
        under section 2001(c) on the excess of--
                    ``(A) the sum of--
                            ``(i) the amount of the taxable estate, and
                            ``(ii) the amount of the adjusted taxable 
                        gifts, over
                    ``(B) the exemption amount for the calendar year in 
                which the decedent died.
            ``(3) Exemption amount.--
                    ``(A) In general.--The term `exemption amount' 
                means $60,000.
                    ``(B) Residents of possessions of the united 
                states.--In the case of a decedent who is considered to 
                be a nonresident not a citizen of the United States 
                under section 2209, the exemption amount under this 
                paragraph shall be the greater of--
                            ``(i) $60,000, or
                            ``(ii) that proportion of $175,000 which 
                        the value of that part of the decedent's gross 
                        estate which at the time of his death is 
                        situated in the United States bears to the 
                        value of his entire gross estate wherever 
                        situated.
                    ``(C) Special rules.--
                            ``(i) Coordination with treaties.--To the 
                        extent required under any treaty obligation of 
                        the United States, the exemption amount allowed 
                        under this paragraph shall be equal to the 
                        amount which bears the same ratio to the 
                        exemption amount under section 2001(b)(3) (for 
                        the calendar year in which the decedent died) 
                        as the value of the part of the decedent's 
                        gross estate which at the time of his death is 
                        situated in the United States bears to the 
                        value of his entire gross estate wherever 
                        situated. For purposes of the preceding 
                        sentence, property shall not be treated as 
situated in the United States if such property is exempt from the tax 
imposed by this subchapter under any treaty obligation of the United 
States.
                            ``(ii) Coordination with gift tax exemption 
                        and unified credit.--If an exemption has been 
                        allowed under section 2521 (or a credit has 
                        been allowed under section 2505 as in effect on 
                        the day before the date of enactment of the 
                        Rural America Prosperity Act of 2001) with 
                        respect to any gift made by the decedent, each 
                        dollar amount contained in subparagraph (A) or 
                        (B) or the exemption amount applicable under 
                        clause (i) of this subparagraph (whichever 
                        applies) shall be reduced by the exemption so 
                        allowed under section 2521 (or, in the case of 
                        such a credit, by the amount of the gift for 
                        which the credit was so allowed).''.
            (8) Section 2102 of such Code is amended by striking 
        subsection (c).
            (9)(A) Subsection (a) of section 2107 of such Code is 
        amended by adding at the end the following new paragraph:
            ``(3) Limitation on exemption amount.--Subparagraphs (B) 
        and (C) of section 2101(b)(3) shall not apply in applying 
        section 2101 for purposes of this section.''.
            (B) Subsection (c) of section 2107 of such Code is 
        amended--
                    (i) by striking paragraph (1) and by redesignating 
                paragraphs (2) and (3) as paragraphs (1) and (2), 
                respectively, and
                    (ii) by striking the second sentence of paragraph 
                (2) (as so redesignated).
            (10) Paragraph (1) of section 6018(a) of such Code is 
        amended by striking ``the applicable exclusion amount in effect 
        under section 2010(c)'' and inserting ``the exemption amount 
        under section 2001(b)(3)''.
            (11) Subparagraph (A) of section 6601(j)(2) of such Code is 
        amended to read as follows:
                    ``(A) the amount of the tentative tax which would 
                be determined under the rate schedule set forth in 
                section 2001(c) if the amount with respect to which 
                such tentative tax is to be computed were $1,000,000, 
                or''.
            (12) The table of sections for part II of subchapter A of 
        chapter 11 of such Code is amended by striking the item 
        relating to section 2010.
            (13) The table of sections for subchapter A of chapter 12 
        of such Code is amended by striking the item relating to 
        section 2505.
    (d) Effective Date.--The amendments made by this section--
            (1) insofar as they relate to the tax imposed by chapter 11 
        of the Internal Revenue Code of 1986, shall apply to estates of 
        decedents dying after December 31, 2001, and
            (2) insofar as they relate to the tax imposed by chapter 12 
        of such Code, shall apply to gifts made after December 31, 
        2001.

SEC. 116. DEEMED ALLOCATION OF GST EXEMPTION TO LIFETIME TRANSFERS TO 
              TRUSTS; RETROACTIVE ALLOCATIONS.

    (a) In General.--Section 2632 of the Internal Revenue Code of 1986 
(relating to special rules for allocation of GST exemption) is amended 
by redesignating subsection (c) as subsection (e) and by inserting 
after subsection (b) the following new subsections:
    ``(c) Deemed Allocation to Certain Lifetime Transfers to GST 
Trusts.--
            ``(1) In general.--If any individual makes an indirect skip 
        during such individual's lifetime, any unused portion of such 
        individual's GST exemption shall be allocated to the property 
transferred to the extent necessary to make the inclusion ratio for 
such property zero. If the amount of the indirect skip exceeds such 
unused portion, the entire unused portion shall be allocated to the 
property transferred.
            ``(2) Unused portion.--For purposes of paragraph (1), the 
        unused portion of an individual's GST exemption is that portion 
        of such exemption which has not previously been--
                    ``(A) allocated by such individual,
                    ``(B) treated as allocated under subsection (b) 
                with respect to a direct skip occurring during or 
                before the calendar year in which the indirect skip is 
                made, or
                    ``(C) treated as allocated under paragraph (1) with 
                respect to a prior indirect skip.
            ``(3) Definitions.--
                    ``(A) Indirect skip.--For purposes of this 
                subsection, the term `indirect skip' means any transfer 
                of property (other than a direct skip) subject to the 
                tax imposed by chapter 12 made to a GST trust.
                    ``(B) GST trust.--The term `GST trust' means a 
                trust that could have a generation-skipping transfer 
                with respect to the transferor unless--
                            ``(i) the trust instrument provides that 
                        more than 25 percent of the trust corpus must 
                        be distributed to or may be withdrawn by one or 
                        more individuals who are non-skip persons--
                                    ``(I) before the date that the 
                                individual attains age 46,
                                    ``(II) on or before one or more 
                                dates specified in the trust instrument 
                                that will occur before the date that 
                                such individual attains age 46, or
                                    ``(III) upon the occurrence of an 
                                event that, in accordance with 
                                regulations prescribed by the 
                                Secretary, may reasonably be expected 
                                to occur before the date that such 
                                individual attains age 46;
                            ``(ii) the trust instrument provides that 
                        more than 25 percent of the trust corpus must 
                        be distributed to or may be withdrawn by one or 
                        more individuals who are non-skip persons and 
                        who are living on the date of death of another 
                        person identified in the instrument (by name or 
                        by class) who is more than 10 years older than 
                        such individuals;
                            ``(iii) the trust instrument provides that, 
                        if one or more individuals who are non-skip 
                        persons die on or before a date or event 
                        described in clause (i) or (ii), more than 25 
                        percent of the trust corpus either must be 
                        distributed to the estate or estates of one or 
                        more of such individuals or is subject to a 
                        general power of appointment exercisable by one 
                        or more of such individuals;
                            ``(iv) the trust is a trust any portion of 
                        which would be included in the gross estate of 
                        a non-skip person (other than the transferor) 
                        if such person died immediately after the 
                        transfer;
                            ``(v) the trust is a charitable lead 
                        annuity trust (within the meaning of section 
                        2642(e)(3)(A)) or a charitable remainder 
                        annuity trust or a charitable 
remainder unitrust (within the meaning of section 664(d)); or
                            ``(vi) the trust is a trust with respect to 
                        which a deduction was allowed under section 
                        2522 for the amount of an interest in the form 
                        of the right to receive annual payments of a 
                        fixed percentage of the net fair market value 
                        of the trust property (determined yearly) and 
                        which is required to pay principal to a non-
                        skip person if such person is alive when the 
                        yearly payments for which the deduction was 
                        allowed terminate.
                For purposes of this subparagraph, the value of 
                transferred property shall not be considered to be 
                includible in the gross estate of a non-skip person or 
                subject to a right of withdrawal by reason of such 
                person holding a right to withdraw so much of such 
                property as does not exceed the amount referred to in 
                section 2503(b) with respect to any transferor, and it 
                shall be assumed that powers of appointment held by 
                non-skip persons will not be exercised.
            ``(4) Automatic allocations to certain gst trusts.--For 
        purposes of this subsection, an indirect skip to which section 
        2642(f) applies shall be deemed to have been made only at the 
        close of the estate tax inclusion period. The fair market value 
        of such transfer shall be the fair market value of the trust 
        property at the close of the estate tax inclusion period.
            ``(5) Applicability and effect.--
                    ``(A) In general.--An individual--
                            ``(i) may elect to have this subsection not 
                        apply to--
                                    ``(I) an indirect skip, or
                                    ``(II) any or all transfers made by 
                                such individual to a particular trust, 
                                and
                            ``(ii) may elect to treat any trust as a 
                        GST trust for purposes of this subsection with 
                        respect to any or all transfers made by such 
                        individual to such trust.
                    ``(B) Elections.--
                            ``(i) Elections with respect to indirect 
                        skips.--An election under subparagraph 
                        (A)(i)(I) shall be deemed to be timely if filed 
                        on a timely filed gift tax return for the 
                        calendar year in which the transfer was made or 
                        deemed to have been made pursuant to paragraph 
                        (4) or on such later date or dates as may be 
prescribed by the Secretary.
                            ``(ii) Other elections.--An election under 
                        clause (i)(II) or (ii) of subparagraph (A) may 
                        be made on a timely filed gift tax return for 
                        the calendar year for which the election is to 
                        become effective.
    ``(d) Retroactive Allocations.--
            ``(1) In general.--If--
                    ``(A) a non-skip person has an interest or a future 
                interest in a trust to which any transfer has been 
                made,
                    ``(B) such person--
                            ``(i) is a lineal descendant of a 
                        grandparent of the transferor or of a 
                        grandparent of the transferor's spouse or 
                        former spouse, and
                            ``(ii) is assigned to a generation below 
                        the generation assignment of the transferor, 
                        and
                    ``(C) such person predeceases the transferor,
        then the transferor may make an allocation of any of such 
        transferor's unused GST exemption to any previous transfer or 
        transfers to the trust on a chronological basis.
            ``(2) Special rules.--If the allocation under paragraph (1) 
        by the transferor is made on a gift tax return filed on or 
        before the date prescribed by section 6075(b) for gifts made 
        within the calendar year within which the non-skip person's 
        death occurred--
                    ``(A) the value of such transfer or transfers for 
                purposes of section 2642(a) shall be determined as if 
                such allocation had been made on a timely filed gift 
                tax return for each calendar year within which each 
                transfer was made,
                    ``(B) such allocation shall be effective 
                immediately before such death, and
                    ``(C) the amount of the transferor's unused GST 
                exemption available to be allocated shall be determined 
                immediately before such death.
            ``(3) Future interest.--For purposes of this subsection, a 
        person has a future interest in a trust if the trust may permit 
        income or corpus to be paid to such person on a date or dates 
        in the future.''.
    (b) Conforming Amendment.--Paragraph (2) of section 2632(b) of the 
Internal Revenue Code of 1986 is amended by striking ``with respect to 
a direct skip'' and inserting ``or subsection (c)(1)''.
    (c) Effective Dates.--
            (1) Deemed allocation.--Section 2632(c) of the Internal 
        Revenue Code of 1986 (as added by subsection (a)), and the 
        amendment made by subsection (b), shall apply to transfers 
        subject to chapter 11 or 12 made after December 31, 2000, and 
        to estate tax inclusion periods ending after December 31, 2000.
            (2) Retroactive allocations.--Section 2632(d) of the 
        Internal Revenue Code of 1986 (as added by subsection (a)) 
        shall apply to deaths of non-skip persons occurring after 
        December 31, 2000.

SEC. 117. SEVERING OF TRUSTS.

    (a) In General.--Subsection (a) of section 2642 of the Internal 
Revenue Code of 1986 (relating to inclusion ratio) is amended by adding 
at the end the following new paragraph:
            ``(3) Severing of trusts.--
                    ``(A) In general.--If a trust is severed in a 
                qualified severance, the trusts resulting from such 
                severance shall be treated as separate trusts 
                thereafter for purposes of this chapter.
                    ``(B) Qualified severance.--For purposes of 
                subparagraph (A)--
                            ``(i) In general.--The term `qualified 
                        severance' means the division of a single trust 
                        and the creation (by any means available under 
                        the governing instrument or under local law) of 
                        two or more trusts if--
                                    ``(I) the single trust was divided 
                                on a fractional basis, and
                                    ``(II) the terms of the new trusts, 
                                in the aggregate, provide for the same 
                                succession of interests of 
                                beneficiaries as are provided in the 
                                original trust.
                            ``(ii) Trusts with inclusion ratio greater 
                        than zero.--If a trust has an inclusion ratio 
                        of greater than zero and less than 1, a 
                        severance is a qualified severance only if the 
                        single trust is divided into two trusts, one of 
                        which receives a fractional share of the total 
                        value of all trust assets equal to the 
                        applicable fraction of the single trust 
                        immediately before the severance. In such case, 
                        the trust receiving such fractional share shall 
                        have an inclusion ratio of zero and the other 
                        trust shall have an inclusion ratio of 1.
                            ``(iii) Regulations.--The term `qualified 
                        severance' includes any other severance 
                        permitted under regulations prescribed by the 
                        Secretary.
                    ``(C) Timing and manner of severances.--A severance 
                pursuant to this paragraph may be made at any time. The 
                Secretary shall prescribe by forms or regulations the 
                manner in which the qualified severance shall be 
                reported to the Secretary.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to severances after December 31, 2000.

SEC. 118. MODIFICATION OF CERTAIN VALUATION RULES.

    (a) Gifts for Which Gift Tax Return Filed or Deemed Allocation 
Made.--Paragraph (1) of section 2642(b) of the Internal Revenue Code of 
1986 (relating to valuation rules, etc.) is amended to read as follows:
            ``(1) Gifts for which gift tax return filed or deemed 
        allocation made.--If the allocation of the GST exemption to any 
        transfers of property is made on a gift tax return filed on or 
        before the date prescribed by section 6075(b) for such transfer 
or is deemed to be made under section 2632 (b)(1) or (c)(1)--
                    ``(A) the value of such property for purposes of 
                subsection (a) shall be its value as finally determined 
                for purposes of chapter 12 (within the meaning of 
                section 2001(f)(2)), or, in the case of an allocation 
                deemed to have been made at the close of an estate tax 
                inclusion period, its value at the time of the close of 
                the estate tax inclusion period, and
                    ``(B) such allocation shall be effective on and 
                after the date of such transfer, or, in the case of an 
                allocation deemed to have been made at the close of an 
                estate tax inclusion period, on and after the close of 
                such estate tax inclusion period.''.
    (b) Transfers at Death.--Subparagraph (A) of section 2642(b)(2) of 
the Internal Revenue Code of 1986 is amended to read as follows:
                    ``(A) Transfers at death.--If property is 
                transferred as a result of the death of the transferor, 
                the value of such property for purposes of subsection 
                (a) shall be its value as finally determined for 
                purposes of chapter 11; except that, if the 
                requirements prescribed by the Secretary respecting 
                allocation of post-death changes in value are not met, 
                the value of such property shall be determined as of 
                the time of the distribution concerned.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to transfers subject to chapter 11 or 12 of the Internal Revenue 
Code of 1986 made after December 31, 2000.

SEC. 119. RELIEF PROVISIONS.

    (a) In General.--Section 2642 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(g) Relief Provisions.--
            ``(1) Relief from late elections.--
                    ``(A) In general.--The Secretary shall by 
                regulation prescribe such circumstances and procedures 
                under which extensions of time will be granted to 
                make--
                            ``(i) an allocation of GST exemption 
                        described in paragraph (1) or (2) of subsection 
                        (b), and
                            ``(ii) an election under subsection (b)(3) 
                        or (c)(5) of section 2632.
                Such regulations shall include procedures for 
                requesting comparable relief with respect to transfers 
                made before the date of enactment of this paragraph.
                    ``(B) Basis for determinations.--In determining 
                whether to grant relief under this paragraph, the 
                Secretary shall take into account all relevant 
                circumstances, including evidence of intent contained 
                in the trust instrument or instrument of transfer and 
                such other factors as the Secretary deems relevant. For 
                purposes of determining whether to grant relief under 
                this paragraph, the time for making the allocation (or 
                election) shall be treated as if not expressly 
                prescribed by statute.
            ``(2) Substantial compliance.--An allocation of GST 
        exemption under section 2632 that demonstrates an intent to 
        have the lowest possible inclusion ratio with respect to a 
        transfer or a trust shall be deemed to be an allocation of so 
        much of the transferor's unused GST exemption as produces the 
        lowest possible inclusion ratio. In determining whether there 
        has been substantial compliance, all relevant circumstances 
        shall be taken into account, including evidence of intent 
        contained in the trust instrument or instrument of transfer and 
        such other factors as the Secretary deems relevant.''.
    (b) Effective Dates.--
            (1) Relief from late elections.--Section 2642(g)(1) of the 
        Internal Revenue Code of 1986 (as added by subsection (a)) 
        shall apply to requests pending on, or filed after, December 
        31, 2000.
            (2) Substantial compliance.--Section 2642(g)(2) of such 
        Code (as so added) shall apply to transfers subject to chapter 
        11 or 12 of the Internal Revenue Code of 1986 made after 
        December 31, 2000. No implication is intended with respect to 
        the availability of relief from late elections or the 
        application of a rule of substantial compliance on or before 
        such date.

SEC. 120. EXPANSION OF ESTATE TAX RULE FOR CONSERVATION EASEMENTS.

    (a) Where Land Is Located.--
            (1) In general.--Clause (i) of section 2031(c)(8)(A) of the 
        Internal Revenue Code of 1986 (defining land subject to a 
        conservation easement) is amended--
                    (A) by striking ``25 miles'' both places it appears 
                and inserting ``50 miles''; and
                    (B) striking ``10 miles'' and inserting ``25 
                miles''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to estates of decedents dying after December 31, 
        2000.
    (b) Clarification of Date for Determining Value of Land and 
Easement.--
            (1) In general.--Section 2031(c)(2) of the Internal Revenue 
        Code of 1986 (defining applicable percentage) is amended by 
        adding at the end the following new sentence: ``The values 
        taken into account under the preceding sentence shall be such 
        values as of the date of the contribution referred to in 
        paragraph (8)(B).''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to estates of decedents dying after December 31, 
        1997.

   TITLE II--STUDY OF COSTS OF REGULATIONS ON FARMERS, RANCHERS, AND 
                               FORESTERS

SEC. 201. COMPTROLLER GENERAL STUDY OF REGULATIONS.

    (a) Data Review and Collection.--The Comptroller General of the 
United States shall--
            (1) conduct a review of existing Federal and non-Federal 
        studies and data regarding the cost to farmers, ranchers, and 
        foresters of complying with existing or proposed Federal 
regulations directly affecting farmers, ranchers, and foresters; and
            (2) as necessary, obtain and analyze new data concerning 
        the costs to farmers, ranchers, and foresters of complying with 
        Federal regulations proposed as of February 1, 2001, directly 
        affecting farmers, ranchers, and foresters.
    (b) Use of Data.--Using the studies and data reviewed and collected 
under subsection (a), the Comptroller General shall--
            (1) assess the overall costs to farmers, ranchers, and 
        foresters of complying with existing and proposed Federal 
        regulations directly affecting farmers, ranchers, and 
        foresters; and
            (2) identify and recommend reasonable alternatives to those 
        regulations that will achieve the objectives of the regulations 
        at less cost to farmers, ranchers, and foresters.
    (c) Submission of Results.--Not later than February 1, 2002, the 
Comptroller General shall submit to the Secretary of Agriculture, the 
Committee on Agriculture, Nutrition, and Forestry of the Senate, and 
the Committee on Agriculture of the House of Representatives the 
results of the assessment conducted under subsection (b)(1) and the 
recommendations prepared under subsection (b)(2).

SEC. 202. RESPONSE OF SECRETARY OF AGRICULTURE.

    Not later than April 1, 2002, the Secretary of Agriculture shall 
submit to the Committee on Agriculture, Nutrition, and Forestry of the 
Senate, and the Committee on Agriculture of the House of 
Representatives a report responding to the recommendations of the 
Comptroller General under section 202 regarding reasonable alternatives 
that could achieve the objectives of Federal regulations at less cost 
to farmers, ranchers, and foresters.

  TITLE III--EXTENSION OF TRADE AUTHORITIES PROCEDURES FOR RECIPROCAL 
                            TRADE AGREEMENTS

SEC. 301. SHORT TITLE.

    This title may be cited as the ``Reciprocal Trade Agreement 
Authorities Act of 2001''.

SEC. 302. TRADE NEGOTIATING OBJECTIVES.

    (a) Overall Trade Negotiating Objectives.--The overall trade 
negotiating objectives of the United States for agreements subject to 
the provisions of section 303 are--
            (1) to obtain more open, equitable, and reciprocal market 
        access;
            (2) to obtain the reduction or elimination of barriers and 
        distortions that are directly related to trade and that 
        decrease market opportunities for United States exports or 
        otherwise distort United States trade;
            (3) to further strengthen the system of international 
        trading disciplines and procedures, including dispute 
        settlement; and
            (4) to foster economic growth, raise living standards, and 
        promote full employment in the United States and to enhance the 
        global economy.
    (b) Principal Trade Negotiating Objectives.--
            (1) Trade barriers and distortions.--The principal 
        negotiating objectives of the United States regarding trade 
        barriers and other trade distortions are--
                    (A) to expand competitive market opportunities for 
                United States exports and to obtain fairer and more 
                open conditions of trade by reducing or eliminating 
                tariff and nontariff barriers and policies and 
                practices of foreign governments directly related to 
                trade that decrease market opportunities for United 
                States exports or otherwise distort United States 
                trade; and
                    (B) to obtain reciprocal tariff and nontariff 
                barrier elimination agreements, with particular 
                attention to those tariff categories covered in section 
                111(b) of the Uruguay Round Agreements Act (19 U.S.C. 
                3521(b)).
            (2) Trade in services.--The principal negotiating objective 
        of the United States regarding trade in services is to reduce 
        or eliminate barriers to international trade in services, 
        including regulatory and other barriers that deny national 
        treatment or unreasonably restrict the establishment or 
        operations of service suppliers.
            (3) Foreign investment.--The principal negotiating 
        objective of the United States regarding foreign investment is 
        to reduce or eliminate artificial or trade-distorting barriers 
        to trade related foreign investment by--
                    (A) reducing or eliminating exceptions to the 
                principle of national treatment;
                    (B) freeing the transfer of funds relating to 
                investments;
                    (C) reducing or eliminating performance 
                requirements and other unreasonable barriers to the 
                establishment and operation of investments;
                    (D) seeking to establish standards for 
                expropriation and compensation for expropriation, 
                consistent with United States legal principles and 
                practice; and
                    (E) providing meaningful procedures for resolving 
                investment disputes.
            (4) Intellectual property.--The principal negotiating 
        objectives of the United States regarding trade-related 
        intellectual property are--
                    (A) to further promote adequate and effective 
                protection of intellectual property rights, including 
                through--
                            (i)(I) ensuring accelerated and full 
                        implementation of the Agreement on Trade-
                        Related Aspects of Intellectual Property Rights 
                        referred to in section 101(d)(15) of the 
                        Uruguay Round Agreements Act (19 U.S.C. 
                        3511(d)(15)), particularly with respect to 
                        United States industries whose products are 
                        subject to the lengthiest transition periods 
                        for full compliance by developing countries 
                        with that Agreement, and
                            (II) ensuring that the provisions of any 
                        multilateral or bilateral trade agreement 
                        entered into by the United States provide 
                        protection at least as strong as the protection 
                        afforded by chapter 17 of the North American 
                        Free Trade Agreement and the annexes thereto;
                            (ii) providing strong protection for new 
                        and emerging technologies and new methods of 
                        transmitting and distributing products 
                        embodying intellectual property;
                            (iii) preventing or eliminating 
                        discrimination with respect to matters 
                        affecting the availability, acquisition, scope, 
                        maintenance, use, and enforcement of 
                        intellectual property rights; and
                            (iv) providing strong enforcement of 
                        intellectual property rights, including through 
                        accessible, expeditious, and effective civil, 
                        administrative, and criminal enforcement 
                        mechanisms; and
                    (B) to secure fair, equitable, and 
                nondiscriminatory market access opportunities for 
                United States persons that rely upon intellectual 
                property protection.
            (5) Transparency.--The principal negotiating objective of 
        the United States with respect to transparency is to obtain 
        broader application of the principle of transparency through--
                    (A) increased and more timely public access to 
                information regarding trade issues and the activities 
                of international trade institutions; and
                    (B) increased openness of dispute settlement 
                proceedings, including under the World Trade 
                Organization.
            (6) Reciprocal trade in agriculture.--The principal 
        negotiating objective of the United States with respect to 
        agriculture is to obtain competitive opportunities for United 
        States exports in foreign markets substantially equivalent to 
        the competitive opportunities afforded foreign exports in 
        United States markets and to achieve fairer and more open 
        conditions of trade in bulk and value-added commodities by--
                    (A) reducing or eliminating, by a date certain, 
                tariffs or other charges that decrease market 
                opportunities for United States exports--
                            (i) giving priority to those products that 
                        are subject to significantly higher tariffs or 
                        subsidy regimes of major producing countries; 
                        and
                            (ii) providing reasonable adjustment 
                        periods for United States import-sensitive 
                        products, in close consultation with the 
                        Congress on such products before initiating 
                        tariff reduction negotiations;
                    (B) reducing or eliminating subsidies that decrease 
                market opportunities for United States exports or 
                unfairly distort agriculture markets to the detriment 
                of the United States;
                    (C) developing, strengthening, and clarifying rules 
                and effective dispute settlement mechanisms to 
                eliminate practices that unfairly decrease United 
                States market access opportunities or distort 
                agricultural markets to the detriment of the United 
                States, including--
                            (i) unfair or trade-distorting activities 
                        of export state trading enterprises and other 
                        administrative mechanisms, with emphasis on 
                        requiring price transparency in the operation 
                        of export state trading enterprises and such 
                        other mechanisms;
                            (ii) unjustified trade restrictions or 
                        commercial requirements affecting new 
                        technologies, including biotechnology;
                            (iii) unjustified sanitary or phytosanitary 
                        restrictions, including those not based on 
                        scientific principles in contravention of the 
                        Uruguay Round Agreements;
                            (iv) other unjustified technical barriers 
                        to trade; and
                            (v) restrictive rules in the administration 
                        of tariff-rate quotas;
                    (D) improving import relief mechanisms to recognize 
                the unique characteristics of perishable agriculture;
                    (E) taking into account whether a party to the 
                negotiations has failed to adhere to the provisions of 
                already existing trade agreements with the United 
                States or has circumvented obligations under those 
                agreements;
                    (F) taking into account whether a product is 
                subject to market distortions by reason of a failure of 
                a major producing country to adhere to the provisions 
                of already existing trade agreements with the United 
                States or by the circumvention by that country of its 
                obligations under those agreements; and
                    (G) otherwise ensuring that countries that accede 
                to the World Trade Organization have made meaningful 
                market liberalization commitments in agriculture.
            (7) Labor, environment, and other matters.--The principal 
        negotiating objective of the United States regarding labor, 
        environment, and other matters is to address the following 
        aspects of foreign government policies and practices regarding 
        labor, environment, and other matters that are directly related 
        to trade:
                    (A) To ensure that foreign labor, environmental, 
                health, or safety policies and practices do not 
                arbitrarily or unjustifiably discriminate or serve as 
                disguised barriers to trade.
                    (B) To ensure that foreign governments do not 
                derogate from or waive existing domestic environmental, 
                health, safety, or labor measures, including measures 
                that deter exploitative child labor, as an 
                encouragement to gain competitive advantage in 
                international trade or investment. Nothing in this 
                subparagraph is intended to address changes to a 
                country's laws that are consistent with sound 
                macroeconomic development.
            (8) WTO extended negotiations.--The principal negotiating 
        objectives of the United States regarding trade in financial 
        services are those set forth in section 135(a) of the Uruguay 
        Round Agreements Act (19 U.S.C. 3555(a)), regarding trade in 
        civil aircraft are those set forth in section 135(c) of that 
        Act, and regarding rules of origin are the conclusion of an 
        agreement described in section 132 of that Act (19 U.S.C. 
        3552).
    (c) International Economic Policy Objectives.--
            (1) In general.--The President should take into account the 
        relationship between trade agreements and other important 
        priorities of the United States and seek to ensure that the 
        trade agreements entered into by the United States complement 
        and reinforce other policy goals. The United States priorities 
        in this area include--
                    (A) seeking to ensure that trade and environmental 
                policies are mutually supportive;
                    (B) seeking to protect and preserve the environment 
                and enhance the international means for doing so, while 
                optimizing the use of the world's resources;
                    (C) promoting respect for worker rights and the 
                rights of children and an understanding of the 
                relationship between trade and worker rights, 
                particularly by working with the International Labor 
                Organization to encourage the observance and 
                enforcement of core labor standards, including the 
                prohibition on exploitative child labor; and
                    (D) supplementing and strengthening standards for 
                protection of intellectual property under conventions 
                administered by international organizations other than 
                the World Trade Organization, expanding these 
                conventions to cover new and emerging technologies, and 
                eliminating discrimination and unreasonable exceptions 
                or preconditions to such protection.
            (2) Applicability of trade authorities procedures.--Nothing 
        in this subsection shall be construed to authorize the use of 
        the trade authorities procedures described in section 303 to 
        modify United States law.
    (d) Guidance for Negotiators.--
            (1) Domestic objectives.--In pursuing the negotiating 
        objectives described in subsection (b), the negotiators on 
        behalf of the United States shall take into account United 
        States domestic objectives, including the protection of health 
        and safety, essential security, environmental, consumer, and 
        employment opportunity interests, and the law and regulations 
        related thereto.
            (2) Consultations with congressional advisers and 
        enforcement of the trade laws.--In the course of negotiations 
        conducted under this title, the United States Trade 
        Representative shall--
                    (A) consult closely and on a timely basis with, and 
                keep fully apprised of the negotiations, the 
                congressional advisers on trade policy and negotiations 
                appointed under section 161 of the Trade Act of 1974; 
                and
                    (B) preserve the ability of the United States to 
                enforce rigorously its trade laws, including the 
                antidumping and countervailing duty laws, and avoid 
                agreements which lessen the effectiveness of domestic 
                and international disciplines on unfair trade, 
                especially dumping and subsidies, in order to ensure 
                that United States workers, agricultural producers, and 
                firms can compete fully on fair terms and enjoy the 
                benefits of reciprocal trade concessions.
    (e) Adherence to Obligations Under Uruguay Round Agreements.--In 
determining whether to enter into negotiations with a particular 
country, the President shall take into account the extent to which that 
country has implemented, or has accelerated the implementation of, its 
obligations under the Uruguay Round Agreements.

SEC. 303. TRADE AGREEMENTS AUTHORITY.

    (a) Agreements Regarding Tariff Barriers.--
            (1) In general.--Whenever the President determines that one 
        or more existing duties or other import restrictions of any 
        foreign country or the United States are unduly burdening and 
        restricting the foreign trade of the United States and that the 
        purposes, policies, and objectives of this title will be 
        promoted thereby, the President--
                    (A) may enter into trade agreements with foreign 
                countries before--
                            (i) October 1, 2003, or
                            (ii) October 1, 2007, if trade authorities 
                        procedures are extended under subsection (c), 
                        and
                    (B) may, subject to paragraphs (2) and (3), 
                proclaim--
                            (i) such modification or continuance of any 
                        existing duty,
                            (ii) such continuance of existing duty-free 
                        or excise treatment, or
                            (iii) such additional duties,
                as the President determines to be required or 
                appropriate to carry out any such trade agreement. The 
                President shall notify the Congress of the President's 
                intention to enter into an agreement under this 
                subsection.
            (2) Limitations.--No proclamation may be made under 
        paragraph (1) that--
                    (A) reduces any rate of duty (other than a rate of 
                duty that does not exceed 5 percent ad valorem on the 
                date of enactment of this Act) to a rate of duty that 
                is less than 50 percent of the rate of the duty that 
                applies on such date of enactment;
                    (B) reduces the rate of duty on an article to take 
                effect on a date that is more than 10 years after the 
                first reduction that is proclaimed to carry out a trade 
                agreement with respect to such article; or
                    (C) increases any rate of duty above the rate that 
                applied on January 1, 2001.
            (3) Aggregate reduction; exemption from staging.--
                    (A) Aggregate reduction.--Except as provided in 
                subparagraph (B), the aggregate reduction in the rate 
                of duty on any article which is in effect on any day 
                pursuant to a trade agreement entered into under 
                paragraph (1) shall not exceed the aggregate reduction 
                which would have been in effect on such day if--
                            (i) a reduction of 3 percent ad valorem or 
                        a reduction of one-tenth of the total 
                        reduction, whichever is greater, had taken 
                        effect on the effective date of the first 
                        reduction proclaimed under paragraph (1) to 
                        carry out such agreement with respect to such 
                        article; and
                            (ii) a reduction equal to the amount 
                        applicable under clause (i) had taken effect at 
                        1-year intervals after the effective date of 
                        such first reduction.
                    (B) Exemption from staging.--No staging is required 
                under subparagraph (A) with respect to a duty reduction 
                that is proclaimed under paragraph (1) for an article 
                of a kind that is not produced in the United States. 
                The United States International Trade Commission shall 
                advise the President of the identity of articles that 
                may be exempted from staging under this subparagraph.
            (4) Rounding.--If the President determines that such action 
        will simplify the computation of reductions under paragraph 
        (3), the President may round an annual reduction by an amount 
        equal to the lesser of--
                    (A) the difference between the reduction without 
                regard to this paragraph and the next lower whole 
                number; or
                    (B) one-half of 1 percent ad valorem.
            (5) Other limitations.--A rate of duty reduction that may 
        not be proclaimed by reason of paragraph (2) may take effect 
        only if a provision authorizing such reduction is included 
        within an implementing bill provided for under section 305 and 
        that bill is enacted into law.
            (6) Other tariff modifications.--Notwithstanding paragraphs 
        (1)(B) and (2) through (5), and subject to the consultation and 
        layover requirements of section 115 of the Uruguay Round 
        Agreements Act, the President may proclaim the modification of 
        any duty or staged rate reduction of any duty set forth in 
        Schedule XX, as defined in section 2(5) of that Act, if the 
        United States agrees to such modification or staged rate 
        reduction in a negotiation for the reciprocal elimination or 
        harmonization of duties under the auspices of the World Trade 
        Organization or as part of an interim agreement leading to the 
        formation of a regional free-trade area.
            (7) Authority under uruguay round agreements act not 
        affected.--Nothing in this subsection shall limit the authority 
        provided to the President under section 111(b) of the Uruguay 
        Round Agreements Act (19 U.S.C. 3521(b)).
    (b) Agreements Regarding Tariff and Nontariff Barriers.--
            (1) In general.--(A) Whenever the President determines 
        that--
                    (i) one or more existing duties or any other import 
                restriction of any foreign country or the United States 
                or any other barrier to, or other distortion of, 
                international trade unduly burdens or restricts the 
                foreign trade of the United States or adversely affects 
                the United States economy, or
                    (ii) the imposition of any such barrier or 
                distortion is likely to result in such a burden, 
                restriction, or effect,
        and that the purposes, policies, and objectives of this title 
        will be promoted thereby, the President may enter into a trade 
        agreement described in subparagraph (B) during the period 
        described in subparagraph (C).
            (B) The President may enter into a trade agreement under 
        subparagraph (A) with foreign countries providing for--
                    (i) the reduction or elimination of a duty, 
                restriction, barrier, or other distortion described in 
                subparagraph (A), or
                    (ii) the prohibition of, or limitation on the 
                imposition of, such barrier or other distortion.
            (C) The President may enter into a trade agreement under 
        this paragraph before--
                    (i) October 1, 2003, or
                    (ii) October 1, 2007, if trade authorities 
                procedures are extended under subsection (c).
            (2) Conditions.--A trade agreement may be entered into 
        under this subsection only if such agreement makes progress in 
        meeting the applicable objectives described in section 302 and 
        the President satisfies the conditions set forth in section 
        304.
            (3) Bills qualifying for trade authorities procedures.--The 
        provisions of section 151 of the Trade Act of 1974 (in this 
title referred to as ``trade authorities procedures'') apply to a bill 
of either House of Congress consisting only of--
                    (A) a provision approving a trade agreement entered 
                into under this subsection and approving the statement 
                of administrative action, if any, proposed to implement 
                such trade agreement,
                    (B) provisions directly related to the principal 
                trade negotiating objectives set forth in section 
                302(b) achieved in such trade agreement, if those 
                provisions are necessary for the operation or 
                implementation of United States rights or obligations 
                under such trade agreement,
                    (C) provisions that define and clarify, or 
                provisions that are related to, the operation or effect 
                of the provisions of the trade agreement,
                    (D) provisions to provide adjustment assistance to 
                workers and firms adversely affected by trade, and
                    (E) provisions necessary for purposes of complying 
                with section 252 of the Balanced Budget and Emergency 
                Deficit Control Act of 1985 in implementing the trade 
                agreement,
        to the same extent as such section 151 applies to implementing 
        bills under that section. A bill to which this subparagraph 
        applies shall hereafter in this title be referred to as an 
        ``implementing bill''.
    (c) Extension Disapproval Process for Congressional Trade 
Authorities Procedures.--
            (1) In general.--Except as provided in section 305(b)--
                    (A) the trade authorities procedures apply to 
                implementing bills submitted with respect to trade 
                agreements entered into under subsection (b) before 
                October 1, 2003; and
                    (B) the trade authorities procedures shall be 
                extended to implementing bills submitted with respect 
                to trade agreements entered into under subsection (b) 
                after September 30, 2003, and before October 1, 2007, 
                if (and only if)--
                            (i) the President requests such extension 
                        under paragraph (2); and
                            (ii) neither House of the Congress adopts 
                        an extension disapproval resolution under 
                        paragraph (5) before October 1, 2003.
            (2) Report to congress by the president.--If the President 
        is of the opinion that the trade authorities procedures should 
        be extended to implementing bills described in paragraph 
        (1)(B), the President shall submit to the Congress, not later 
        than July 1, 2003, a written report that contains a request for 
        such extension, together with--
                    (A) a description of all trade agreements that have 
                been negotiated under subsection (b) and the 
                anticipated schedule for submitting such agreements to 
                the Congress for approval;
                    (B) a description of the progress that has been 
                made in negotiations to achieve the purposes, policies, 
                and objectives of this title, and a statement that such 
                progress justifies the continuation of negotiations; 
                and
                    (C) a statement of the reasons why the extension is 
                needed to complete the negotiations.
            (3) Report to congress by the advisory committee.--The 
        President shall promptly inform the Advisory Committee for 
        Trade Policy and Negotiations established under section 135 of 
        the Trade Act of 1974 (19 U.S.C. 2155) of the President's 
        decision to submit a report to the Congress under paragraph 
        (2). The Advisory Committee shall submit to the Congress as 
        soon as practicable, but not later than August 1, 2003, a 
        written report that contains--
                    (A) its views regarding the progress that has been 
                made in negotiations to achieve the purposes, policies, 
                and objectives of this title; and
                    (B) a statement of its views, and the reasons 
                therefor, regarding whether the extension requested 
                under paragraph (2) should be approved or disapproved.
            (4) Reports may be classified.--The reports submitted to 
        the Congress under paragraphs (2) and (3), or any portion of 
        such reports, may be classified to the extent the President 
        determines appropriate.
            (5) Extension disapproval resolution.--(A) For purposes of 
        paragraph (1), the term ``extension disapproval resolution'' 
        means a resolution of either House of the Congress, the sole 
        matter after the resolving clause of which is as follows: 
        ``That the ____ disapproves the request of the President for 
        the extension, under section 303(c)(1)(B)(i) of the Reciprocal 
        Trade Agreement Authorities Act of 2001, of the provisions of 
        section 151 of the Trade Act of 1974 to any implementing bill 
        submitted with respect to any trade agreement entered into 
        under section 303(b) of the Reciprocal Trade Agreement 
        Authorities Act of 2001 after September 30, 2003.'', with the 
        blank space being filled with the name of the resolving House 
        of the Congress.
            (B) An extension disapproval resolution--
                    (i) may be introduced in either House of the 
                Congress by any member of such House; and
                    (ii) shall be referred, in the House of 
                Representatives, to the Committee on Ways and Means and 
                to the Committee on Rules.
            (C) The provisions of sections 152(d) and (e) of the Trade 
        Act of 1974 (19 U.S.C. 2192(d) and (e)) (relating to the floor 
        consideration of certain resolutions in the House and Senate) 
        apply to an extension disapproval resolution.
            (D) It is not in order for--
                    (i) the Senate to consider any extension 
                disapproval resolution not reported by the Committee on 
                Finance;
                    (ii) the House of Representatives to consider any 
                extension disapproval resolution not reported by the 
                Committee on Ways and Means and by the Committee on 
                Rules; or
                    (iii) either House of the Congress to consider an 
                extension disapproval resolution after September 30, 
                2003.

SEC. 304. CONSULTATIONS.

    (a) Notice and Consultation Before Negotiation.--
            (1) In general.--The President, with respect to any 
        agreement that is subject to the provisions of section 303(b), 
        shall--
                    (A) provide, at least 90 calendar days before 
                initiating negotiations, written notice to the Congress 
                of the President's intention to enter into the 
                negotiations and set forth therein the date the 
                President intends to initiate such negotiations, the 
                specific United States objectives for the negotiations, 
                and whether the President intends to seek an agreement, 
                or changes to an existing agreement; and
                    (B) before and after submission of the notice, 
                consult regarding the negotiations with the Committee 
                on Finance of the Senate and the Committee on Ways and 
                Means of the House of Representatives and such other 
                committees of the House and Senate as the President 
                deems appropriate.
            (2) Consultations regarding negotiations on certain 
        objectives.--
                    (A) Consultation.--In addition to the requirements 
                set forth in paragraph (1), before initiating 
                negotiations with respect to a trade agreement subject 
                to section 303(b) where the subject matter of such 
                negotiations is directly related to the principal trade 
                negotiating objectives set forth in section 302(b)(1) 
                or section 302(b)(7), the President shall consult with 
                the Committee on Ways and Means of the House of 
                Representatives and the Committee on Finance of the 
                Senate and with the appropriate advisory groups 
                established under section 135 of the Trade Act of 1974 
                with respect to such negotiations.
                    (B) Scope.--The consultations described in 
                subparagraph (A) shall concern the manner in which the 
                negotiation will address the objective of reducing or 
                eliminating a specific tariff or nontariff barrier or 
                foreign government policy or practice directly related 
                to trade that decreases market opportunities for United 
                States exports or otherwise distorts United States 
                trade.
            (3) Negotiations regarding agriculture.--Before initiating 
        negotiations the subject matter of which is directly related to 
        the subject matter under section 302(b)(6)(A) with any country, 
        the President shall assess whether United States tariffs on 
        agriculture products that were bound under the Uruguay Round 
        Agreements are lower than the tariffs bound by that country. In 
        addition, the President shall consider whether the tariff 
        levels bound and applied throughout the world with respect to 
        imports from the United States are higher than United States 
        tariffs and whether the negotiation provides an opportunity to 
        address any such disparity. The President shall consult with 
        the Committee on Ways and Means and the Committee on 
        Agriculture of the House of Representatives and the Committee 
        on Finance and the Committee on Agriculture, Nutrition, and 
        Forestry of the Senate concerning the results of the 
        assessment, whether it is appropriate for the United States to 
        agree to further tariff reductions based on the conclusions 
        reached in the assessment, and how all applicable negotiating 
        objectives will be met.
    (b) Consultation With Congress Before Agreements Entered Into.--
            (1) Consultation.--Before entering into any trade agreement 
        under section 303(b), the President shall consult with--
                    (A) the Committee on Ways and Means of the House of 
                Representatives and the Committee on Finance of the 
                Senate; and
                    (B) each other committee of the House and the 
                Senate, and each joint committee of the Congress, which 
                has jurisdiction over legislation involving subject 
                matters which would be affected by the trade agreement.
            (2) Scope.--The consultation described in paragraph (1) 
        shall include consultation with respect to--
                    (A) the nature of the agreement;
                    (B) how and to what extent the agreement will 
                achieve the applicable purposes, policies, and 
                objectives of this title; and
                    (C) the implementation of the agreement under 
                section 305, including the general effect of the 
                agreement on existing laws.
    (c) Advisory Committee Reports.--The report required under section 
135(e)(1) of the Trade Act of 1974 regarding any trade agreement 
entered into under section 303(a) or (b) of this Act shall be provided 
to the President, the Congress, and the United States Trade 
Representative not later than 30 days after the date on which the 
President notifies the Congress under section 303(a)(1) or 305(a)(1)(A) 
of the President's intention to enter into the agreement.

SEC. 305. IMPLEMENTATION OF TRADE AGREEMENTS.

    (a) In General.--
            (1) Notification and submission.--Any agreement entered 
        into under section 303(b) shall enter into force with respect 
        to the United States if (and only if)--
                    (A) the President, at least 90 calendar days before 
                the day on which the President enters into the trade 
                agreement, notifies the House of Representatives and 
                the Senate of the President's intention to enter into 
                the agreement, and promptly thereafter publishes notice 
                of such intention in the Federal Register;
                    (B) within 60 days after entering into the 
                agreement, the President submits to the Congress a 
                description of those changes to existing laws that the 
                President considers would be required in order to bring 
                the United States into compliance with the agreement;
                    (C) after entering into the agreement, the 
                President submits a copy of the final legal text of the 
                agreement, together with--
                            (i) a draft of an implementing bill 
                        described in section 303(b)(3);
                            (ii) a statement of any administrative 
                        action proposed to implement the trade 
                        agreement; and
                            (iii) the supporting information described 
                        in paragraph (2); and
                    (D) the implementing bill is enacted into law.
            (2) Supporting information.--The supporting information 
        required under paragraph (1)(C)(iii) consists of--
                    (A) an explanation as to how the implementing bill 
                and proposed administrative action will change or 
                affect existing law; and
                    (B) a statement--
                            (i) asserting that the agreement makes 
                        progress in achieving the applicable purposes, 
policies, and objectives of this title;
                            (ii) setting forth the reasons of the 
                        President regarding--
                                    (I) how and to what extent the 
                                agreement makes progress in achieving 
                                the applicable purposes, policies, and 
                                objectives referred to in clause (i);
                                    (II) whether and how the agreement 
                                changes provisions of an agreement 
                                previously negotiated;
                                    (III) how the agreement serves the 
                                interests of United States commerce; 
                                and
                                    (IV) how the implementing bill 
                                meets the standards set forth in 
                                section 303(b)(3).
            (3) Reciprocal benefits.--In order to ensure that a foreign 
        country that is not a party to a trade agreement entered into 
        under section 303(b) does not receive benefits under the 
        agreement unless the country is also subject to the obligations 
        under the agreement, the implementing bill submitted with 
        respect to the agreement shall provide that the benefits and 
        obligations under the agreement apply only to the parties to 
        the agreement, if such application is consistent with the terms 
        of the agreement. The implementing bill may also provide that 
        the benefits and obligations under the agreement do not apply 
        uniformly to all parties to the agreement, if such application 
        is consistent with the terms of the agreement.
    (b) Limitations on Trade Authorities Procedures.--
            (1) For lack of consultations.--
                    (A) In general.--The trade authorities procedures 
                shall not apply to any implementing bill submitted with 
                respect to a trade agreement entered into under section 
                303(b) if during the 60-day period beginning on the 
                date that one House of Congress agrees to a procedural 
                disapproval resolution for lack of notice or 
                consultations with respect to that trade agreement, the 
                other House separately agrees to a procedural 
                disapproval resolution with respect to that agreement.
                    (B) Procedural disapproval resolution.--For 
                purposes of this paragraph, the term ``procedural 
                disapproval resolution'' means a resolution of either 
                House of Congress, the sole matter after the resolving 
                clause of which is as follows: ``That the President has 
                failed or refused to notify or consult (as the case may 
                be) with Congress in accordance with section 304 or 305 
                of the Reciprocal Trade Agreement Authorities Act of 
                2001 on negotiations with respect to, or entering into, 
                a trade agreement to which section 303(b) of that Act 
                applies and, therefore, the provisions of section 151 
                of the Trade Act of 1974 shall not apply to any 
                implementing bill submitted with respect to that trade 
                agreement.''.
            (2) Procedures for considering resolution.--(A) A 
        procedural disapproval resolution--
                    (i) in the House of Representatives--
                            (I) shall be introduced by the chairman or 
                        ranking minority member of the Committee on 
                        Ways and Means or the chairman or ranking 
                        minority member of the Committee on Rules;
                            (II) shall be referred to the Committee on 
                        Ways and Means and to the Committee on Rules; 
                        and
                            (III) may not be amended by either 
                        Committee; and
                    (ii) in the Senate shall be an original resolution 
                of the Committee on Finance.
            (B) The provisions of section 152(d) and (e) of the Trade 
        Act of 1974 (19 U.S.C. 2192(d) and (e)) (relating to the floor 
        consideration of certain resolutions in the House and Senate) 
        apply to a procedural disapproval resolution.
            (C) It is not in order for the House of Representatives to 
        consider any procedural disapproval resolution not reported by 
        the Committee on Ways and Means and by the Committee on Rules.
    (c) Rules of House of Representatives and Senate.--Subsection (b) 
of this section and section 303(c) are enacted by the Congress--
            (1) as an exercise of the rulemaking power of the House of 
        Representatives and the Senate, respectively, and as such are 
        deemed a part of the rules of each House, respectively, and 
        such procedures supersede other rules only to the extent that 
        they are inconsistent with such other rules; and
            (2) with the full recognition of the constitutional right 
        of either House to change the rules (so far as relating to the 
        procedures of that House) at any time, in the same manner, and 
        to the same extent as any other rule of that House.

SEC. 306. TREATMENT OF CERTAIN TRADE AGREEMENTS.

    (a) Certain Agreements.--Notwithstanding section 303(b)(2), if an 
agreement to which section 303(b) applies--
            (1) is entered into under the auspices of the World Trade 
        Organization regarding trade in information technology 
        products,
            (2) is entered into under the auspices of the World Trade 
        Organization regarding extended negotiations on financial 
        services as described in section 135(a) of the Uruguay Round 
        Agreements Act (19 U.S.C. 3555(a)),
            (3) is entered into under the auspices of the World Trade 
        Organization regarding the rules of origin work program 
        described in Article 9 of the Agreement on Rules of Origin 
        referred to in section 101(d)(10) of the Uruguay Round 
        Agreements Act (19 U.S.C. 3511(d)(10)), or
            (4) is entered into with Chile,
and results from negotiations that were commenced before the date of 
enactment of this Act, subsection (b) shall apply.
    (b) Treatment of Agreements.--In the case of any agreement to which 
subsection (a) applies--
            (1) the applicability of the trade authorities procedures 
        to implementing bills shall be determined without regard to the 
        requirements of section 304(a), and any procedural disapproval 
        resolution under section 305(b)(1)(B) shall not be in order on 
        the basis of a failure or refusal to comply with the provisions 
        of section 304(a); and
            (2) the President shall consult regarding the negotiations 
        described in subsection (a) with the committees described in 
        section 304(a)(1)(B) as soon as feasible after the enactment of 
        this Act.

SEC. 307. CONFORMING AMENDMENTS.

    (a) In General.--Title I of the Trade Act of 1974 (19 U.S.C. 2111 
et seq.) is amended as follows:
            (1) Implementing bill.--
                    (A) Section 151(b)(1) (19 U.S.C. 2191(b)(1)) is 
                amended by striking ``section 1103(a)(1) of the Omnibus 
                Trade and Competitiveness Act of 1988, or section 282 
                of the Uruguay Round Agreements Act'' and inserting 
                ``section 282 of the Uruguay Round Agreements Act, or 
                section 305(a)(1) of the Reciprocal Trade Agreement 
                Authorities Act of 2001''.
                    (B) Section 151(c)(1) (19 U.S.C. 2191(c)(1)) is 
                amended by striking ``or section 282 of the Uruguay 
                Round Agreements Act'' and inserting ``, section 282 of 
                the Uruguay Round Agreements Act, or section 305(a)(1) 
                of the Reciprocal Trade Agreement Authorities Act of 
                2001''.
            (2) Advice from international trade commission.--Section 
        131 (19 U.S.C. 2151) is amended--
                    (A) in subsection (a)--
                            (i) in paragraph (1), by striking ``section 
                        123 of this Act or section 1102 (a) or (c) of 
                        the Omnibus Trade and Competitiveness Act of 
                        1988,'' and inserting ``section 123 of this Act 
                        or section 303(a) or (b) of the Reciprocal 
                        Trade Agreement Authorities Act of 2001,''; and
                            (ii) in paragraph (2), by striking 
                        ``section 1102 (b) or (c) of the Omnibus Trade 
                        and Competitiveness Act of 1988'' and inserting 
                        ``section 303(b) of the Reciprocal Trade 
                        Agreement Authorities Act of 2001'';
                    (B) in subsection (b), by striking ``section 
                1102(a)(3)(A)'' and inserting ``section 303(a)(3)(A) of 
                the Reciprocal Trade Agreement Authorities Act of 
                2001'' before the end period; and
                    (C) in subsection (c), by striking ``section 1102 
                of the Omnibus Trade and Competitiveness Act of 1988,'' 
                and inserting ``section 303 of the Reciprocal Trade 
                Agreement Authorities Act of 2001,''.
            (3) Hearings and advice.--Sections 132, 133(a), and 134(a) 
        (19 U.S.C. 2152, 2153(a), and 2154(a)) are each amended by 
        striking ``section 1102 of the Omnibus Trade and 
        Competitiveness Act of 1988,'' each place it appears and 
        inserting ``section 303 of the Reciprocal Trade Agreement 
        Authorities Act of 2001,''.
            (4) Prerequisites for offers.--Section 134(b) (19 U.S.C. 
        2154(b)) is amended by striking ``section 1102 of the Omnibus 
        Trade and Competitiveness Act of 1988'' and inserting ``section 
        303 of the Reciprocal Trade Agreement Authorities Act of 
        2001''.
            (5) Advice from private and public sectors.--Section 135 
        (19 U.S.C. 2155) is amended--
                    (A) in subsection (a)(1)(A), by striking ``section 
                1102 of the Omnibus Trade and Competitiveness Act of 
                1988'' and inserting ``section 303 of the Reciprocal 
                Trade Agreement Authorities Act of 2001'';
                    (B) in subsection (e)(1)--
                            (i) by striking ``section 1102 of the 
                        Omnibus Trade and Competitiveness Act of 1988'' 
                        each place it appears and inserting ``section 
                        303 of the Reciprocal Trade Agreement 
                        Authorities Act of 2001''; and
                            (ii) by striking ``section 1103(a)(1)(A) of 
                        such Act of 1988'' and inserting ``section 
                        305(a)(1)(A) of the Reciprocal Trade Agreement 
                        Authorities Act of 2001''; and
                    (C) in subsection (e)(2), by striking ``section 
                1101 of the Omnibus Trade and Competitiveness Act of 
                1988'' and inserting ``section 302 of the Reciprocal 
                Trade Agreement Authorities Act of 2001''.
            (6) Transmission of agreements to congress.--Section 162(a) 
        (19 U.S.C. 2212(a)) is amended by striking ``or under section 
        1102 of the Omnibus Trade and Competitiveness Act of 1988'' and 
        inserting ``or under section 303 of the Reciprocal Trade 
        Agreement Authorities Act of 2001''.
    (b) Application of Certain Provisions.--For purposes of applying 
sections 125, 126, and 127 of the Trade Act of 1974 (19 U.S.C. 2135, 
2136(a), and 2137)--
            (1) any trade agreement entered into under section 303 
        shall be treated as an agreement entered into under section 101 
        or 102, as appropriate, of the Trade Act of 1974 (19 U.S.C. 
        2111 or 2112); and
            (2) any proclamation or Executive order issued pursuant to 
        a trade agreement entered into under section 303 shall be 
        treated as a proclamation or Executive order issued pursuant to 
        a trade agreement entered into under section 102 of the Trade 
        Act of 1974.

SEC. 308. DEFINITIONS.

    In this title:
            (1) United states person.--The term ``United States 
        person'' means--
                    (A) a United States citizen;
                    (B) a partnership, corporation, or other legal 
                entity organized under the laws of the United States; 
                and
                    (C) a partnership, corporation, or other legal 
                entity that is organized under the laws of a foreign 
                country and is controlled by entities described in 
                subparagraph (B) or United States citizens, or both.
            (2) Uruguay round agreements.--The term ``Uruguay Round 
        Agreements'' has the meaning given that term in section 2(7) of 
        the Uruguay Round Agreements Act (19 U.S.C. 3501(7)).
            (3) World trade organization.--The term ``World Trade 
        Organization'' means the organization established pursuant to 
        the WTO Agreement.
            (4) WTO agreement.--The term ``WTO Agreement'' means the 
        Agreement Establishing the World Trade Organization entered 
        into on April 15, 1994.

                  TITLE IV--AGRICULTURAL TRADE FREEDOM

SEC. 401. SHORT TITLE.

    This title may be cited as the ``Agricultural Trade Freedom Act''.

SEC. 402. DEFINITIONS.

    In this title, the terms ``agricultural commodity'' and ``United 
States agricultural commodity'' have the meanings given the terms in 
section 102 of the Agricultural Trade Act of 1978 (7 U.S.C. 5602).

SEC. 403. AGRICULTURAL COMMODITIES, LIVESTOCK, AND PRODUCTS EXEMPT FROM 
              UNILATERAL AGRICULTURAL SANCTIONS.

    Subtitle B of title IV of the Agricultural Trade Act of 1978 (7 
U.S.C. 5661 et seq.) is amended by adding at the end the following:

``SEC. 418. AGRICULTURAL COMMODITIES, LIVESTOCK, AND PRODUCTS EXEMPT 
              FROM UNILATERAL AGRICULTURAL SANCTIONS.

    ``(a) Definitions.--In this section:
            ``(1) Current sanction.--The term `current sanction' means 
        a unilateral agricultural sanction that is in effect on the 
        date of enactment of the Agricultural Trade Freedom Act.
            ``(2) New sanction.--The term `new sanction' means a 
        unilateral agricultural sanction that becomes effective after 
        the date of enactment of that Act.
            ``(3) Unilateral agricultural sanction.--The term 
        `unilateral agricultural sanction' means any prohibition, 
        restriction, or condition that is imposed on the export of an 
        agricultural commodity to a foreign country or foreign entity 
        and that is imposed by the United States for reasons of the 
        national interest, except in a case in which the United States 
        imposes the measure pursuant to a multilateral regime and the 
        other members of that regime have agreed to impose 
        substantially equivalent measures.
    ``(b) Exemption.--
            ``(1) In general.--Subject to paragraphs (2) and (3) and 
        notwithstanding any other provision of law, agricultural 
        commodities made available as a result of commercial sales 
        shall be exempt from a unilateral agricultural sanction imposed 
        by the United States on another country.
            ``(2) Exclusions.--Paragraph (1) shall not apply to 
        agricultural commodities made available as a result of programs 
        carried out under--
                    ``(A) the Agricultural Trade Development and 
                Assistance Act of 1954 (7 U.S.C. 1691 et seq.);
                    ``(B) section 416 of the Agricultural Act of 1949 
                (7 U.S.C. 1431);
                    ``(C) the Food for Progress Act of 1985 (7 U.S.C. 
                1736o);
                    ``(D) the Agricultural Trade Act of 1978 (7 U.S.C. 
                5601 et seq.); or
                    ``(E) section 153 of the Food Security Act of 1985 
                (15 U.S.C. 713a-14).
            ``(3) Determination by president.--The President may 
        include agricultural commodities made available as a result of 
        the activities described in paragraph (1) in the unilateral 
        agricultural sanction imposed on a foreign country or foreign 
        entity if--
                    ``(A) a declaration of war by Congress is in effect 
                with respect to the foreign country or foreign entity; 
                or
                    ``(B)(i) the President determines that inclusion of 
                the agricultural commodities is in the national 
                interest;
                    ``(ii) the President submits the report required 
                under subsection (d); and
                    ``(iii) Congress has not approved a joint 
                resolution stating the disapproval of Congress of the 
                report submitted under subsection (d).
            ``(4) Effect on agricultural trade.--Nothing in this 
        subsection requires the imposition of a unilateral agricultural 
        sanction with respect to an agricultural commodity, whether 
        exported in connection with a commercial sale or a program 
        described in paragraph (2).
    ``(c) Current Sanctions.--
            ``(1) In general.--Subject to paragraph (2), the exemption 
        under subsection (b)(1) shall apply to a current sanction.
            ``(2) Presidential review.--Not later than 90 days after 
        the date of enactment of the Agricultural Trade Freedom Act, 
        the President shall review each current sanction to determine 
        whether the exemption under subsection (b)(1) should apply to 
        the current sanction.
            ``(3) Application.--The exemption under subsection (b)(1) 
        shall apply to a current sanction beginning on the date that is 
        180 days after the date of enactment of the Agricultural Trade 
        Freedom Act unless the President determines that the exemption 
        should not apply to the current sanction for reasons of the 
        national interest.
    ``(d) Report.--
            ``(1) In general.--If the President determines under 
        subsection (b)(3)(B)(i) or (c)(3) that the exemption should not 
        apply to a unilateral agricultural sanction, the President 
        shall submit a report to Congress not later than 15 days after 
        the date of the determination.
            ``(2) Contents of report.--The report shall contain--
                    ``(A) an explanation of--
                            ``(i) the economic activity that is 
                        proposed to be prohibited, restricted, or 
                        conditioned by the unilateral agricultural 
                        sanction; and
                            ``(ii) the national interest for which the 
                        exemption should not apply to the unilateral 
                        agricultural sanction; and
                    ``(B) an assessment by the Secretary--
                            ``(i) regarding export sales--
                                    ``(I) in the case of a current 
                                sanction, whether markets in the 
                                sanctioned country or countries present 
                                a substantial trade opportunity for 
                                export sales of a United States 
                                agricultural commodity; or
                                    ``(II) in the case of a new 
                                sanction, the extent to which any 
                                country or countries to be sanctioned 
                                or likely to be sanctioned are markets 
                                that accounted for, during the 
                                preceding calendar year, more than 3 
                                percent of export sales of a United 
States agricultural commodity;
                            ``(ii) regarding the effect on United 
                        States agricultural commodities--
                                    ``(I) in the case of a current 
                                sanction, the potential for export 
                                sales of United States agricultural 
                                commodities in the sanctioned country 
                                or countries; and
                                    ``(II) in the case of a new 
                                sanction, the likelihood that exports 
                                of United States agricultural 
                                commodities will be affected by the new 
                                sanction or by retaliation by any 
                                country to be sanctioned or likely to 
                                be sanctioned, including a description 
                                of specific United States agricultural 
                                commodities that are most likely to be 
                                affected;
                            ``(iii) regarding the income of 
                        agricultural producers--
                                    ``(I) in the case of a current 
                                sanction, the potential for increasing 
                                the income of producers of the United 
                                States agricultural commodities 
                                involved; and
                                    ``(II) in the case of a new 
                                sanction, the likely effect on incomes 
                                of producers of the agricultural 
                                commodities involved;
                            ``(iv) regarding displacement of United 
                        States suppliers--
                                    ``(I) in the case of a current 
                                sanction, the potential for increased 
                                competition for United States suppliers 
                                of the agricultural commodity in 
                                countries that are not subject to the 
                                current sanction because of uncertainty 
                                about the reliability of the United 
                                States suppliers; and
                                    ``(II) in the case of a new 
                                sanction, the extent to which the new 
                                sanction would permit foreign suppliers 
                                to replace United States suppliers; and
                            ``(v) regarding the reputation of United 
                        States agricultural producers as reliable 
                        suppliers--
                                    ``(I) in the case of a current 
                                sanction, whether removing the sanction 
                                would improve the reputation of United 
                                States producers as reliable suppliers 
                                of agricultural commodities in general, 
                                and of specific agricultural 
                                commodities identified by the 
                                Secretary; and
                                    ``(II) in the case of a new 
                                sanction, the likely effect of the 
                                proposed sanction on the reputation of 
                                United States producers as reliable 
                                suppliers of agricultural commodities 
                                in general, and of specific 
                                agricultural commodities identified by 
                                the Secretary.
    ``(e) Congressional Priority Procedures.--
            ``(1) Joint resolution.--In this subsection, the term 
        `joint resolution' means only a joint resolution introduced 
        within 10 session days of Congress after the date on which the 
        report of the President under subsection (d) is received by 
        Congress, the matter after the resolving clause of which is as 
        follows: `That Congress disapproves the report of the President 
        pursuant to section 418(d) of the Agricultural Trade Act of 
        1978, transmitted on ______________.', with the blank completed 
        with the appropriate date.
            ``(2) Referral of report.--The report described in 
        subsection (d) shall be referred to the appropriate committee 
        or committees of the House of Representatives and to the 
        appropriate committee or committees of the Senate.
            ``(3) Referral of joint resolution.--
                    ``(A) In general.--A joint resolution shall be 
                referred to the committees in each House of Congress 
                with jurisdiction.
                    ``(B) Reporting date.--A joint resolution referred 
                to in subparagraph (A) may not be reported before the 
                eighth session day of Congress after the introduction 
                of the joint resolution.
            ``(4) Discharge of committee.--If the committee to which is 
        referred a joint resolution has not reported the joint 
        resolution (or an identical joint resolution) at the end of 30 
        session days of Congress after the date of introduction of the 
        joint resolution--
                    ``(A) the committee shall be discharged from 
                further consideration of the joint resolution; and
                    ``(B) the joint resolution shall be placed on the 
                appropriate calendar of the House concerned.
            ``(5) Floor consideration.--
                    ``(A) Motion to proceed.--
                            ``(i) In general.--When the committee to 
                        which a joint resolution is referred has 
                        reported, or when a committee is discharged 
                        under paragraph (4) from further consideration 
                        of, a joint resolution--
                                    ``(I) it shall be at any time 
                                thereafter in order (even though a 
                                previous motion to the same effect has 
                                been disagreed to) for any member of 
                                the House concerned to move to proceed 
                                to the consideration of the joint 
                                resolution; and
                                    ``(II) all points of order against 
                                the joint resolution (and against 
                                consideration of the joint resolution) 
                                are waived.
                            ``(ii) Privilege.--The motion to proceed to 
                        the consideration of the joint resolution--
                                    ``(I) shall be highly privileged in 
                                the House of Representatives and 
                                privileged in the Senate; and
                                    ``(II) shall not be debatable.
                            ``(iii) Amendments and motions not in 
                        order.--The motion to proceed to the 
                        consideration of the joint resolution shall not 
                        be subject to--
                                    ``(I) amendment;
                                    ``(II) a motion to postpone; or
                                    ``(III) a motion to proceed to the 
                                consideration of other business.
                            ``(iv) Motion to reconsider not in order.--
                        A motion to reconsider the vote by which the 
                        motion is agreed to or disagreed to shall not 
                        be in order.
                            ``(v) Business until disposition.--If a 
                        motion to proceed to the consideration of the 
                        joint resolution is agreed to, the joint 
                        resolution shall remain the unfinished business 
                        of the House concerned until disposed of.
                    ``(B) Limitations on debate.--
                            ``(i) In general.--Debate on the joint 
                        resolution, and on all debatable motions and 
                        appeals in connection with the joint 
                        resolution, shall be limited to not more than 
                        10 hours, which shall be divided equally 
                        between those favoring and those opposing the 
                        joint resolution.
                            ``(ii) Further debate limitations.--A 
                        motion to limit debate shall be in order and 
                        shall not be debatable.
                            ``(iii) Amendments and motions not in 
                        order.--An amendment to, a motion to postpone, 
                        a motion to proceed to the consideration of 
                        other business, a motion to recommit the joint 
                        resolution, or a motion to reconsider the vote 
                        by which the joint resolution is agreed to or 
                        disagreed to shall not be in order.
                    ``(C) Vote on final passage.--Immediately following 
                the conclusion of the debate on a joint resolution, and 
                a single quorum call at the conclusion of the debate if 
                requested in accordance with the rules of the House 
                concerned, the vote on final passage of the joint 
                resolution shall occur.
                    ``(D) Rulings of the chair on procedure.--An appeal 
                from a decision of the Chair relating to the 
                application of the rules of the Senate or House of 
                Representatives, as the case may be, to the procedure 
                relating to a joint resolution shall be decided without 
                debate.
            ``(6) Coordination with action by other house.--If, before 
        the passage by one House of a joint resolution of that House, 
        that House receives from the other House a joint resolution, 
        the following procedures shall apply:
                    ``(A) No committee referral.--The joint resolution 
                of the other House shall not be referred to a 
                committee.
                    ``(B) Floor procedure.--With respect to a joint 
                resolution of the House receiving the joint 
                resolution--
                            ``(i) the procedure in that House shall be 
                        the same as if no joint resolution had been 
                        received from the other House; but
                            ``(ii) the vote on final passage shall be 
                        on the joint resolution of the other House.
                    ``(C) Disposition of joint resolutions of receiving 
                house.--On disposition of the joint resolution received 
                from the other House, it shall no longer be in order to 
                consider the joint resolution originated in the 
                receiving House.
            ``(7) Procedures after action by both the house and 
        senate.--If a House receives a joint resolution from the other 
        House after the receiving House has disposed of a joint 
        resolution originated in that House, the action of the 
        receiving House with regard to the disposition of the joint 
        resolution originated in that House shall be deemed to be the 
        action of the receiving House with regard to the joint 
        resolution originated in the other House.
            ``(8) Rulemaking power.--This subsection is enacted by 
        Congress--
                    ``(A) as an exercise of the rulemaking power of the 
                Senate and House of Representatives, respectively, and 
                as such this subsection--
                            ``(i) is deemed to be a part of the rules 
                        of each House, respectively, but applicable 
                        only with respect to the procedure to be 
                        followed in that House in the case of a joint 
                        resolution; and
                            ``(ii) supersedes other rules only to the 
                        extent that this subsection is inconsistent 
                        with those rules; and
                    ``(B) with full recognition of the constitutional 
                right of either House to change the rules (so far as 
                the rules relate to the procedure of that House) at any 
                time, in the same manner and to the same extent as in 
                the case of any other rule of that House.''.

SEC. 404. SALE OR BARTER OF FOOD ASSISTANCE.

    It is the sense of Congress that the amendments to section 203 of 
the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 
1723) made by section 208 of the Federal Agriculture Improvement and 
Reform Act of 1996 (Public Law 104-127; 110 Stat. 954) were intended to 
allow the sale or barter of United States agricultural commodities in 
connection with United States food assistance only within the recipient 
country or countries adjacent to the recipient country, unless--
            (1) the sale or barter within the recipient country or 
        adjacent countries is not practicable; and
            (2) the sale or barter within countries other than the 
        recipient country or adjacent countries will not disrupt 
        commercial markets for the agricultural commodity involved.
                                 <all>