1.Short
title; table of contents
(a)This Act may be cited
as the Control Spending Now
Act
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title; table of
contents.
TITLE I—Reforming the budget and spending process
Subtitle A—Targeting congressional earmarks
Sec. 1101. Short title.
Sec. 1102. Reform of consideration of appropriations bills in
the Senate.
Subtitle B—Giving the President the power to eliminate
wasteful spending
Sec. 1201. Short title.
Sec. 1202. Legislative line-item veto.
Sec. 1203. Technical and conforming amendments.
Sec. 1204. Sense of Congress on abuse of proposed repeals and
cancellations.
Subtitle C—Restoring strong Pay-As-You-Go
requirements
Sec. 1301. Definitions.
Sec. 1302. PAYGO estimates and PAYGO scorecards.
Sec. 1303. Annual report and sequestration order.
Sec. 1304. Calculating a sequestration.
Sec. 1305. Application of BBEDCA.
Sec. 1306. Technical corrections.
Sec. 1307. Conforming amendments.
Sec. 1308. Exempt programs and activities.
Sec. 1309. Expiration.
Subtitle D—Reforming the budget process
Sec. 1401. Short title.
Sec. 1402. Revision of timetable.
Sec. 1403. Amendments to the Congressional Budget and
Impoundment Control Act of 1974.
Sec. 1404. Amendments to title
31, United States Code.
Sec. 1405. Two-year appropriations; title and style of
appropriations Acts.
Sec. 1406. Multiyear authorizations.
Sec. 1407. Government plans on a biennial basis.
Sec. 1408. Biennial appropriations bills.
Sec. 1409. Report on two-year fiscal period.
Sec. 1410. Effective date.
TITLE II—Making Congress tighten its belt
Sec. 2001. Ending automatic pay raises for Members of
Congress.
Sec. 2002. Cutting spending on congressional
offices.
Sec. 2003. Improving Senate efficiency and
transparency.
TITLE III—Ending corporate welfare
Sec. 3001. Ending the Wall Street bail-out.
Sec. 3002. Ending subsidies for private student loan
companies.
Sec. 3003. Bringing down prices for prescription drugs by
permitting drug reimportation.
Sec. 3004. Bringing down prices for prescription drugs by
extending 340B discounted drug pricing to managed care
organizations.
Sec. 3005. Bringing down prices for prescription drugs by
increasing the Medicaid drug rebate.
Sec. 3006. Ending taxpayer subsidies for exporters.
Sec. 3007. Reducing taxpayer subsidies for exporters of
agriculture commodities.
Sec. 3008. Making companies pay when they fail FDA quality
inspections.
TITLE IV—Ending taxpayer subsidies for big
agribusinesses
Sec. 4001. Reforming irrigation subsidies.
Sec. 4002. Reforming crop insurance subsidies.
Sec. 4003. Reducing direct payments to large
landowners.
Sec. 4004. Cutting farm subsidies for high-income
individuals.
Sec. 4005. Eliminating the cotton storage subsidy.
Sec. 4006. Ending subsidized grazing fees.
TITLE V—Ending taxpayer subsidies for the use of public resources
and government services
Sec. 5001. Preventing giveaways of the public
spectrum.
Sec. 5002. Eliminating double subsidies for hardrock mining by
repealing percentage depletion allowances.
Sec. 5003. Ending subsidies for hardrock mining on public lands
by imposing mining royalties and claim fees.
Sec. 5004. Reducing State subsidies for onshore oil, gas, coal,
and mineral leases on public lands.
Sec. 5005. Reducing subsidies for oil, gas, and geothermal
energy production on public lands.
Sec. 5006. Reducing aviation subsidies.
Sec. 5007. Targeting Medicare prescription drug assistance to
those who need it most.
TITLE VI—Targeting wasteful or unnecessary government
spending
Sec. 6001. Delaying a lunar mission.
Sec. 6002. Eliminating the V–22 Osprey.
Sec. 6003. Cutting C–17s.
Sec. 6004. Ending spending for high-risk
satellites.
Sec. 6005. Reducing cost overruns and delays on major weapons
systems.
Sec. 6006. Reducing spending on unneeded defense spare
parts.
Sec. 6007. Reducing overpayments to defense
contractors.
Sec. 6008. Ending wasteful intelligence spending.
Sec. 6009. Ending the IRS slush fund.
Sec. 6010. Rescinding unspent earmarks.
Sec. 6011. Repealing the rail-line relocation
program.
Sec. 6012. Eliminating Radio/TV marti at the Office of Cuba
Broadcasting.
Sec. 6013. Ending support for the Colombian
military.
<enum>I</enum><header>Reforming the
budget and spending process</header>
<subtitle id="idF95DA76E2E56425DB2EF928D8D64F282"><enum>A</enum><header>Targeting
congressional earmarks</header>
<section commented="no" display-inline="no-display-inline" id="id221D3C9D587F4DF8B3B4F09B469A7DE6" section-type="subsequent-section"><enum>1101.</enum><header display-inline="yes-display-inline">Short title</header><text display-inline="no-display-inline">This subtitle may be cited as the
<quote><short-title>Fiscal Discipline, Earmark Reform, and
Accountability Act</short-title></quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="id7AA90513722C4A98AD8DF01242D57FCE" section-type="subsequent-section"><enum>1102.</enum><header display-inline="yes-display-inline">Reform of consideration of appropriations
bills in the Senate</header>
<subsection commented="no" display-inline="no-display-inline" id="id94EB6DDFF2954F76B98FC47336FBE3EF"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Rule XVI of the Standing Rules of the
Senate is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idBC994F80378A4D62BB080D788357C43E" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="idD7984BE64BAB4CABB36285475ADF7A48"><enum>9.(a)</enum><text display-inline="yes-display-inline">On a point of order made by any
Senator:</text>
<paragraph commented="no" display-inline="no-display-inline" id="id775D1FD72F184C9E9CCBA9A24FC4E644"><enum>(1)</enum><text display-inline="yes-display-inline">No new or general legislation nor any
unauthorized appropriation may be included in any general appropriation
bill.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id0DB6F0DDA00C4B68ACDFC3A5494A8CC2"><enum>(2)</enum><text display-inline="yes-display-inline">No amendment may be received to any general
appropriation bill the effect of which will be to add an unauthorized
appropriation to the bill.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2E671ADEBE2D427A9586F77709270AD3"><enum>(3)</enum><text display-inline="yes-display-inline">No unauthorized appropriation may be
included in any amendment between the Houses, or any amendment thereto, in
relation to a general appropriation bill.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id3F8663C55F8C487C9AF84C2B8145E710"><enum>(b)</enum><paragraph commented="no" display-inline="yes-display-inline" id="id43A233AE17C843349875ED1345E80CB9"><enum>(1)</enum><text display-inline="yes-display-inline">If a point of order under subparagraph
(a)(1) against a Senate bill or amendment is sustained—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id8783A48C0123445C887F95BC97C0D18D" indent="up1"><enum>(A)</enum><text display-inline="yes-display-inline">the new or general legislation or
unauthorized appropriation shall be struck from the bill or amendment;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id281087259FA64478A33AF940186BDDCD" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">any modification of total amounts
appropriated necessary to reflect the deletion of the matter struck from the
bill or amendment shall be made.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id74E58A7D604B4C22865DA492EF337C6A" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">If a point of order under subparagraph
(a)(1) against an Act of the House of Representatives is sustained when the
Senate is not considering an amendment in the nature of a substitute, an
amendment to the House bill is deemed to have been adopted that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id55A1662173D34723A0CA1B89FC95C079"><enum>(A)</enum><text display-inline="yes-display-inline">strikes the new or general legislation or
unauthorized appropriation from the bill; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id283F5A4CFDE142248FF3469005C919FE"><enum>(B)</enum><text display-inline="yes-display-inline">modifies, if necessary, the total amounts
appropriated by the bill to reflect the deletion of the matter struck from the
bill.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id8A13243D927C46DFB1582E332E7F1DAE"><enum>(c)</enum><text display-inline="yes-display-inline">If the point of order against an amendment
under subparagraph (a)(2) is sustained, the amendment shall be out of order and
may not be considered.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idE3F92D4274C4432AB5D19F171D674626"><enum>(d)</enum><paragraph commented="no" display-inline="yes-display-inline" id="id167B48A5F71A4C92A3F150EE728D3AF0"><enum>(1)</enum><text display-inline="yes-display-inline">If a point of order under subparagraph
(a)(3) against a Senate amendment is sustained—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idE74829D65BF54A1496F4653661964BC2" indent="up1"><enum>(A)</enum><text display-inline="yes-display-inline">the unauthorized appropriation shall be
struck from the amendment;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF6655621A2BF4A8B8100618851102F2C" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">any modification of total amounts
appropriated necessary to reflect the deletion of the matter struck from the
amendment shall be made; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idCF6F689557204036A1A97127419AAC6B" indent="up1"><enum>(C)</enum><text display-inline="yes-display-inline">after all other points of order under this
paragraph have been disposed of, the Senate shall proceed to consider the
amendment as so modified.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id06994AA23339438D9F914034C9FE1747" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">If a point of order under subparagraph
(a)(3) against a House of Representatives amendment is sustained—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idECEA60D36B32404D8A3D64D561438B31"><enum>(A)</enum><text display-inline="yes-display-inline">an
amendment to the House amendment is deemed to have been adopted that—</text>
<clause commented="no" display-inline="no-display-inline" id="id9126BEB93EC54CD3B417788B8BC98D6E"><enum>(i)</enum><text display-inline="yes-display-inline">strikes the new or general legislation or
unauthorized appropriation from the House amendment; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id5D42B1C9853542FE9234C5A68F95184E"><enum>(ii)</enum><text display-inline="yes-display-inline">modifies, if necessary, the total amounts
appropriated by the bill to reflect the deletion of the matter struck from the
House amendment; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idDD2BC47C3069487FA139279939B45C66"><enum>(B)</enum><text display-inline="yes-display-inline">after all other points of order under this
paragraph have been disposed of, the Senate shall proceed to consider the
question of whether to concur with further amendment.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idC1222E0671504BE49FD1C290E420E3C9"><enum>(e)</enum><text display-inline="yes-display-inline">The disposition of a point of order made
under any other paragraph of this rule, or under any other Standing Rule of the
Senate, that is not sustained, or is waived, does not preclude, or affect, a
point of order made under subparagraph (a) with respect to the same
matter.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idA276677DD67947DCB1648FF903FB259B"><enum>(f)</enum><text display-inline="yes-display-inline">A point of order under subparagraph (a) may
be waived only by a motion agreed to by the affirmative vote of three-fifths of
the Senators duly chosen and sworn. If an appeal is taken from the ruling of
the Presiding Officer with respect to such a point of order, the ruling of the
Presiding Officer shall be sustained absent an affirmative vote of three-fifths
of the Senators duly chosen and sworn.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID773a992bc4284018bcf7b185ee5d137c"><enum>(g)</enum><text display-inline="yes-display-inline">Notwithstanding any other rule of the
Senate, it shall be in order for a Senator to raise a single point of order
that several provisions of a general appropriation bill or an amendment between
the Houses on a general appropriation bill violate subparagraph (a). The
Presiding Officer may sustain the point of order as to some or all of the
provisions against which the Senator raised the point of order. If the
Presiding Officer so sustains the point of order as to some or all of the
provisions against which the Senator raised the point of order, then only those
provisions against which the Presiding Officer sustains the point of order
shall be deemed stricken pursuant to this paragraph. Before the Presiding
Officer rules on such a point of order, any Senator may move to waive such a
point of order, in accordance with subparagraph (f), as it applies to some or
all of the provisions against which the point of order was raised. Such a
motion to waive is amendable in accordance with the rules and precedents of the
Senate. After the Presiding Officer rules on such a point of order, any Senator
may appeal the ruling of the Presiding Officer on such a point of order as it
applies to some or all of the provisions on which the Presiding Officer
ruled.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDaf533763fb1c4a20916d52a9db40fad4"><enum>(h)</enum><text display-inline="yes-display-inline">For purposes of this paragraph:</text>
<paragraph commented="no" display-inline="no-display-inline" id="IDc61be32585674870b7c86a2ec791faf5"><enum>(1)</enum><text display-inline="yes-display-inline">The term <term>new or general
legislation</term> has the meaning given that term when it is used in paragraph
2 of this rule.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID46c5185fd7414cc5ba6884981679130f"><enum>(2)</enum><text display-inline="yes-display-inline">The term <term>new matter</term> means
matter not committed to conference by either House of Congress.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID437cca2ff3714e099c84ff0547a13838"><enum>(3)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id0E307CB96D4445429E99CDFB91F8B117"><enum>(A)</enum><text display-inline="yes-display-inline">The term <term>unauthorized
appropriation</term> means a <term>congressionally directed spending
item</term> as defined in rule XLIV—</text>
<clause commented="no" display-inline="no-display-inline" id="IDe26c38695208476194a08ed898d08f88" indent="up1"><enum>(i)</enum><text display-inline="yes-display-inline">that is not specifically authorized by law
or Treaty stipulation (unless the appropriation has been specifically
authorized by an Act or resolution previously passed by the Senate during the
same session or proposed in pursuance of an estimate submitted in accordance
with law); or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID88cb7b86b0cd48b59e86937c0ab01799" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">the amount of which exceeds the amount
specifically authorized by law or Treaty stipulation (or specifically
authorized by an Act or resolution previously passed by the Senate during the
same session or proposed in pursuance of an estimate submitted in accordance
with law) to be appropriated.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDf36f4436051b424883ee1baaf00bf759" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">An
appropriation is not specifically authorized if it is restricted or directed
to, or authorized to be obligated or expended for the benefit of, an
identifiable person, program, project, entity, or jurisdiction by earmarking or
other specification, whether by name or description, in a manner that is so
restricted, directed, or authorized that it applies only to a single
identifiable person, program, project, entity, or jurisdiction, unless the
identifiable person, program, project, entity, or jurisdiction to which the
restriction, direction, or authorization applies is described or otherwise
clearly identified in a law or Treaty stipulation (or an Act or resolution
previously passed by the Senate during the same session or in the estimate
submitted in accordance with law) that specifically provides for the
restriction, direction, or authorization of appropriation for such person,
program, project, entity, or jurisdiction.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID5d861ef774cc46fa880b048a22df2687"><enum>10. (a)</enum><text display-inline="yes-display-inline">On a point of order made by any Senator, no
new or general legislation, nor any unauthorized appropriation, new matter, or
nongermane matter may be included in any conference report on a general
appropriation bill.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID9a3e4401377848769d1a879454e83ce4"><enum>(b)</enum><text display-inline="yes-display-inline">If the point of order against a conference
report under subparagraph (a) is sustained—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID5289b310ed3e4eceaa805c178f3a9f67"><enum>(1)</enum><text display-inline="yes-display-inline">the new or general legislation,
unauthorized appropriation, new matter, or nongermane matter in such conference
report shall be deemed to have been struck;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID615ad2844bda46b9b1d991c4874a0d87"><enum>(2)</enum><text display-inline="yes-display-inline">any modification of total amounts
appropriated necessary to reflect the deletion of the matter struck shall be
deemed to have been made;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID136a12440f354a8fa41073d33cdb99e1"><enum>(3)</enum><text display-inline="yes-display-inline">when all other points of order under this
paragraph have been disposed of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDe3aaf22e01134a2c8715ccee01a6ebd9"><enum>(A)</enum><text display-inline="yes-display-inline">the Senate shall proceed to consider the
question of whether the Senate should recede from its amendment to the House
bill, or its disagreement to the amendment of the House, and concur with a
further amendment, which further amendment shall consist of only that portion
of the conference report not deemed to have been struck (together with any
modification of total amounts appropriated);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDf8dfcfc3723649009b71354c0e7b8f4c"><enum>(B)</enum><text display-inline="yes-display-inline">the question shall be debatable; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID164c5fd45fce4333a4e0513b20f96a81"><enum>(C)</enum><text display-inline="yes-display-inline">no further amendment shall be in order;
and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID2f5c2518a9cf4ceaa47be7794e7131f0"><enum>(4)</enum><text display-inline="yes-display-inline">if the Senate agrees to the amendment, then
the bill and the Senate amendment thereto shall be returned to the House for
its concurrence in the amendment of the Senate.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID3b4c7ebec95843c5ab5c1e10d5384c7d"><enum>(c)</enum><text display-inline="yes-display-inline">The disposition of a point of order made
under any other paragraph of this rule, or under any other Standing Rule of the
Senate, that is not sustained, or is waived, does not preclude, or affect, a
point of order made under subparagraph (a) with respect to the same
matter.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDf62a29c5b83c4ced9354011302ba1f21"><enum>(d)</enum><text display-inline="yes-display-inline">A point of order under subparagraph (a) may
be waived only by a motion agreed to by the affirmative vote of three-fifths of
the Senators duly chosen and sworn. If an appeal is taken from the ruling of
the Presiding Officer with respect to such a point of order, the ruling of the
Presiding Officer shall be sustained absent an affirmative vote of three-fifths
of the Senators duly chosen and sworn.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDd2809699272643fea2b2aa47f54cc3a2"><enum>(e)</enum><text display-inline="yes-display-inline">Notwithstanding any other rule of the
Senate, it shall be in order for a Senator to raise a single point of order
that several provisions of a conference report on a general appropriation bill
violate subparagraph (a). The Presiding Officer may sustain the point of order
as to some or all of the provisions against which the Senator raised the point
of order. If the Presiding Officer so sustains the point of order as to some or
all of the provisions against which the Senator raised the point of order, then
only those provisions against which the Presiding Officer sustains the point of
order shall be deemed stricken pursuant to this paragraph. Before the Presiding
Officer rules on such a point of order, any Senator may move to waive such a
point of order, in accordance with subparagraph (d), as it applies to some or
all of the provisions against which the point of order was raised. Such a
motion to waive is amendable in accordance with the rules and precedents of the
Senate. After the Presiding Officer rules on such a point of order, any Senator
may appeal the ruling of the Presiding Officer on such a point of order as it
applies to some or all of the provisions on which the Presiding Officer
ruled.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID47807b761086429e83fc178952d566f8"><enum>(f)</enum><text display-inline="yes-display-inline">For purposes of this paragraph:</text>
<paragraph commented="no" display-inline="no-display-inline" id="IDeb5ed0f631374715998d38468c124164"><enum>(1)</enum><text display-inline="yes-display-inline">The terms <term>new or general
legislation</term>, <term>new matter</term>, and <term>unauthorized
appropriation</term> have the same meaning as in paragraph 9.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID07d2cd97c28a4346a5a1e64c6562db81"><enum>(2)</enum><text display-inline="yes-display-inline">The term <term>nongermane matter</term> has
the same meaning as in rule XXII and under the precedents attendant thereto, as
of the beginning of the 110th
Congress.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDf8009ed7504344248279936b48f0edb0"><enum>(b)</enum><header display-inline="yes-display-inline">Requiring conference reports To be
searchable online</header><text display-inline="yes-display-inline">Paragraph
3(a)(2) of rule XLIV of the Standing Rules of the Senate is amended by
inserting <quote>in an searchable format</quote> after
<quote>available</quote>.</text>
</subsection></section></subtitle><subtitle id="idFBD8805BAA674EB4AE3D3E6277254786"><enum>B</enum><header>Giving the
President the power to eliminate wasteful spending</header>
<section commented="no" display-inline="no-display-inline" id="idE1E28DAC93134FEE9C0206324536D15A" section-type="subsequent-section"><enum>1201.</enum><header display-inline="yes-display-inline">Short title</header><text display-inline="no-display-inline">This subtitle may be cited as the
<quote><short-title>Congressional Accountability and
Line-Item Veto Act of 2009</short-title></quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="HE1424BAB61984FE3B800092FF9327E00" section-type="subsequent-section"><enum>1202.</enum><header display-inline="yes-display-inline">Legislative line-item veto</header><text display-inline="no-display-inline">Title X of the Congressional Budget and
Impoundment Control Act of 1974 (2 U.S.C. 621 et seq.) is amended by striking
all of part B (except for sections 1016 and 1013, which are redesignated as
sections 1019 and 1020, respectively) and part C and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="H38288AE2856A40A59F49C59E7FCFF47E" style="traditional">
<part commented="no" id="H318EE3DCDDE34D2A8123CED400E6861C" level-type="subsequent"><enum>B</enum><header display-inline="yes-display-inline">Legislative Line-Item Veto</header>
<section commented="no" display-inline="no-display-inline" id="H978CA4FFF34148D1BF8298767F6989E3" section-type="subsequent-section"><enum>1011.</enum><header>Line-item veto authority</header><subsection commented="no" display-inline="yes-display-inline" id="H91C05AE2808949F9915D534E6733C5F2"><enum>(a)</enum><header display-inline="yes-display-inline">Proposed cancellations</header><text display-inline="yes-display-inline">Within 30 calendar days after the enactment
of any bill or joint resolution containing any congressional earmark or
providing any limited tariff benefit or targeted tax benefit, the President may
propose, in the manner provided in subsection (b), the repeal of the
congressional earmark or the cancellation of any limited tariff benefit or
targeted tax benefit. If the 30 calendar-day period expires during a period
where either House of Congress stands adjourned sine die at the end of Congress
or for a period greater than 30 calendar days, the President may propose a
cancellation under this section and transmit a special message under subsection
(b) on the first calendar day of session following such a period of
adjournment.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H7B83D689CE444B6300BA42A9861C6338"><enum>(b)</enum><header display-inline="yes-display-inline">Transmittal of Special Message</header>
<paragraph commented="no" display-inline="no-display-inline" id="H34084DF0F1304A06A5AD8713F2024A0"><enum>(1)</enum><header display-inline="yes-display-inline">Special message</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H55CC0881890149D487E601DCDF5C6CC4"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The President may transmit to the Congress
a special message proposing to repeal any congressional earmarks or to cancel
any limited tariff benefits or targeted tax benefits.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1E59F6D1407E44B9B0E33BCE6532A33C"><enum>(B)</enum><header display-inline="yes-display-inline">Contents of special message</header><text display-inline="yes-display-inline">Each special message shall specify, with
respect to the congressional earmarks, limited tariff benefits, or targeted tax
benefits to be repealed or canceled—</text>
<clause commented="no" display-inline="no-display-inline" id="H03A39A484B67417B97EF92EE3C4026F0"><enum>(i)</enum><text display-inline="yes-display-inline">the congressional earmark that the
President proposes to repeal or the limited tariff benefit or the targeted tax
benefit that the President proposes be canceled;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H93CA982BC5034020B605253D48ADF7DE"><enum>(ii)</enum><text display-inline="yes-display-inline">the specific project or governmental
functions involved;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HD680F637C1CA4A94AF3BC93893688B34"><enum>(iii)</enum><text display-inline="yes-display-inline">the reasons why such congressional earmark
should be repealed or such limited tariff benefit or targeted tax benefit
should be canceled;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HFAFA6460B1244FA09134908F00DE2954"><enum>(iv)</enum><text display-inline="yes-display-inline">to the maximum extent practicable, the
estimated fiscal, economic, and budgetary effect (including the effect on
outlays and receipts in each fiscal year) of the proposed repeal or
cancellation;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HA622846F40AA4360B681FC1298F6E1D2"><enum>(v)</enum><text display-inline="yes-display-inline">to the maximum extent practicable, all
facts, circumstances, and considerations relating to or bearing upon the
proposed repeal or cancellation and the decision to propose the repeal or
cancellation, and the estimated effect of the proposed repeal or cancellation
upon the objects, purposes, or programs for which the congressional earmark,
limited tariff benefit, or the targeted tax benefit is provided;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H57C7529F3D4645B5B2BF1200D016D0F1"><enum>(vi)</enum><text display-inline="yes-display-inline">a numbered list of repeals and
cancellations to be included in an approval bill that, if enacted, would repeal
congressional earmarks and cancel limited tariff benefits or targeted tax
benefits proposed in that special message; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HD9394DCCA64B4AD0BCD7364D378DE37B"><enum>(vii)</enum><text display-inline="yes-display-inline">if the special message is transmitted
subsequent to or at the same time as another special message, a detailed
explanation why the proposed repeals or cancellations are not substantially
similar to any other proposed repeal or cancellation in such other
message.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3528681834CE4F5EBE9380E59617595B"><enum>(C)</enum><header display-inline="yes-display-inline">Duplicative proposals
prohibited</header><text display-inline="yes-display-inline">The President may
not propose to repeal or cancel the same or substantially similar congressional
earmark, limited tariff benefit, or targeted tax benefit more than one time
under this Act.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD5D59E64C3814EE5B5A618E9FBF700C5"><enum>(D)</enum><header display-inline="yes-display-inline">Maximum number of special
messages</header><text display-inline="yes-display-inline">The President may
not transmit to the Congress more than one special message under this
subsection related to any bill or joint resolution described in subsection (a),
but may transmit not more than 2 special messages for any omnibus budget
reconciliation or appropriation measure.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H75F01C1E446E4D4D912657EFF672852F"><enum>(2)</enum><header display-inline="yes-display-inline">Enactment of approval bill</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H9DDACF7E8E0E4CA59C96738000A7C286"><enum>(A)</enum><header display-inline="yes-display-inline">Deficit reduction</header><text display-inline="yes-display-inline">Congressional earmarks, limited tariff
benefits, or targeted tax benefits which are repealed or canceled pursuant to
enactment of a bill as provided under this section shall be dedicated only to
reducing the deficit or increasing the surplus.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H507B85EF940D4988968E8662FF291D8E"><enum>(B)</enum><header display-inline="yes-display-inline">Adjustment of levels in the concurrent
resolution on the budget</header><text display-inline="yes-display-inline">Not
later than 5 days after the date of enactment of an approval bill as provided
under this section, the chairs of the Committees on the Budget of the Senate
and the House of Representatives shall revise allocations and aggregates and
other appropriate levels under the appropriate concurrent resolution on the
budget to reflect the repeal or cancellation, and the applicable committees
shall report revised suballocations pursuant to section 302(b), as
appropriate.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0C9705F261844F49AE6C302712E8EF18"><enum>(C)</enum><header display-inline="yes-display-inline">Adjustments to statutory
limits</header><text display-inline="yes-display-inline">After enactment of an
approval bill as provided under this section, the Office of Management and
Budget shall revise applicable limits under the Balanced Budget and Emergency
Deficit Control Act of 1985, as appropriate.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3FF414B844054B919808F10423F58F80"><enum>(D)</enum><header display-inline="yes-display-inline">Trust funds and special funds</header><text display-inline="yes-display-inline">Notwithstanding subparagraph (A), nothing
in this part shall be construed to require or allow the deposit of amounts
derived from a trust fund or special fund which are canceled pursuant to
enactment of a bill as provided under this section to any other fund.</text>
</subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HBAE93EBDA4A640E09C1B1E94947C73CD" section-type="subsequent-section"><enum>1012.</enum><header>Procedures for expedited
consideration</header><subsection commented="no" display-inline="yes-display-inline" id="H80FEDE0291164CF9A989003DB6A8DBE5"><enum>(a)</enum><header display-inline="yes-display-inline">Expedited Consideration</header>
<paragraph commented="no" display-inline="no-display-inline" id="H4D8B93D73E8142589114C524DA2BED6"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The majority leader or minority leader of
each House or his designee shall (by request) introduce an approval bill as
defined in section 1017 not later than the third day of session of that House
after the date of receipt of a special message transmitted to the Congress
under section 1011(b). If the bill is not introduced as provided in the
preceding sentence in either House, then, on the fourth day of session of that
House after the date of receipt of the special message, any Member of that
House may introduce the bill.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD725D30D7C2D424C9C2DD45E29C6E401"><enum>(2)</enum><header display-inline="yes-display-inline">Consideration in the house of
representatives</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HC90B9F020AFD424F849E8DD49197A938"><enum>(A)</enum><header display-inline="yes-display-inline">Referral and reporting</header><text display-inline="yes-display-inline">Any committee of the House of
Representatives to which an approval bill is referred shall report it to the
House without amendment not later than the seventh legislative day after the
date of its introduction. If a committee fails to report the bill within that
period or the House has adopted a concurrent resolution providing for
adjournment sine die at the end of a Congress, such committee shall be
automatically discharged from further consideration of the bill and it shall be
placed on the appropriate calendar.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9183732685834F29A3D7F17DE297757"><enum>(B)</enum><header display-inline="yes-display-inline">Proceeding to consideration</header><text display-inline="yes-display-inline">After an approval bill is reported by or
discharged from committee or the House has adopted a concurrent resolution
providing for adjournment sine die at the end of a Congress, it shall be in
order to move to proceed to consider the approval bill in the House. Such a
motion shall be in order only at a time designated by the Speaker in the
legislative schedule within two legislative days after the day on which the
proponent announces his intention to offer the motion. Such a motion shall not
be in order after the House has disposed of a motion to proceed with respect to
that special message. The previous question shall be considered as ordered on
the motion to its adoption without intervening motion. A motion to reconsider
the vote by which the motion is disposed of shall not be in order.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB22BB655064D4AB3A30065A2E8D000DF"><enum>(C)</enum><header display-inline="yes-display-inline">Consideration</header><text display-inline="yes-display-inline">The approval bill shall be considered as
read. All points of order against an approval bill and against its
consideration are waived. The previous question shall be considered as ordered
on an approval bill to its passage without intervening motion except five hours
of debate equally divided and controlled by the proponent and an opponent and
one motion to limit debate on the bill. A motion to reconsider the vote on
passage of the bill shall not be in order.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD17CC82428FE4F7A831D2286987B151E"><enum>(D)</enum><header display-inline="yes-display-inline">Senate bill</header><text display-inline="yes-display-inline">An approval bill received from the Senate
shall not be referred to committee.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8B6BAB3C116F46B4BEF0525D685C01C3"><enum>(3)</enum><header display-inline="yes-display-inline">Consideration in the senate</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H4AB0EE88316245159C0100E09240B961"><enum>(A)</enum><header display-inline="yes-display-inline">Referral and reporting</header><text display-inline="yes-display-inline">Any committee of the Senate to which an
approval bill is referred shall report it to the Senate without amendment not
later than the seventh legislative day after the date of its introduction. If a
committee fails to report the bill within that period or the Senate has adopted
a concurrent resolution providing for adjournment sine die at the end of a
Congress, such committee shall be automatically discharged from further
consideration of the bill and it shall be placed on the appropriate
calendar.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB1400BC4335245A0AD9EF3C7F0D638D4"><enum>(B)</enum><header display-inline="yes-display-inline">Motion to proceed to
consideration</header><text display-inline="yes-display-inline">After an
approval bill is reported by or discharged from committee or the Senate has
adopted a concurrent resolution providing for adjournment sine die at the end
of a Congress, it shall be in order to move to proceed to consider the approval
bill in the Senate. A motion to proceed to the consideration of a bill under
this subsection in the Senate shall not be debatable. It shall not be in order
to move to reconsider the vote by which the motion to proceed is agreed to or
disagreed to.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA90D4BE2D91C4072B9284538069F5E49"><enum>(C)</enum><header display-inline="yes-display-inline">Limits on debate</header><text display-inline="yes-display-inline">Debate in the Senate on a bill under this
subsection, and all debatable motions and appeals in connection therewith
(including debate pursuant to subparagraph (D)), shall not exceed 10 hours,
equally divided and controlled in the usual form.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9A83E4AD06654ECABBB10820DCBA19EF"><enum>(D)</enum><header display-inline="yes-display-inline">Appeals</header><text display-inline="yes-display-inline">Debate in the Senate on any debatable
motion or appeal in connection with a bill under this subsection shall be
limited to not more than 1 hour, to be equally divided and controlled in the
usual form.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3A921EF4F9A6493E8590F1B5C280495C"><enum>(E)</enum><header display-inline="yes-display-inline">Motion to limit debate</header><text display-inline="yes-display-inline">A motion in the Senate to further limit
debate on a bill under this subsection is not debatable.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5695AD69B17F4090B0A12E7B1951ABC3"><enum>(F)</enum><header display-inline="yes-display-inline">Motion to recommit</header><text display-inline="yes-display-inline">A motion to recommit a bill under this
subsection is not in order.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6A0FA708241944B08B352C1C7BEDB56B"><enum>(G)</enum><header display-inline="yes-display-inline">Consideration of the house bill</header>
<clause commented="no" display-inline="no-display-inline" id="H7771A60F4A3F458884005EB2677EDF87"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">If the Senate has received the House
companion bill to the bill introduced in the Senate prior to a vote under
subparagraph (C), then the Senate may consider, and the vote under subparagraph
(C) may occur on, the House companion bill.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H12223BEF72C34A94BAD5AC68E80173FA"><enum>(ii)</enum><header display-inline="yes-display-inline">Procedure after vote on senate
bill</header><text display-inline="yes-display-inline">If the Senate votes,
pursuant to subparagraph (C), on the bill introduced in the Senate, then
immediately following that vote, or upon receipt of the House companion bill,
the House bill shall be deemed to be considered, read the third time, and the
vote on passage of the Senate bill shall be considered to be the vote on the
bill received from the House.</text>
</clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H4A5E758352D94CE68DCA99C590BA0030"><enum>(b)</enum><header display-inline="yes-display-inline">Amendments Prohibited</header><text display-inline="yes-display-inline">No amendment to, or motion to strike a
provision from, a bill considered under this section shall be in order in
either the Senate or the House of Representatives.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H54928C75FB174891A6E5373E92B140F8" section-type="subsequent-section"><enum>1013.</enum><header>Presidential deferral
authority</header><subsection commented="no" display-inline="yes-display-inline" id="HEF9F5550F6704E11AE6673F8AC9C7C00"><enum>(a)</enum><header display-inline="yes-display-inline">Temporary Presidential Authority To
Withhold Congressional Earmarks</header>
<paragraph commented="no" display-inline="no-display-inline" id="HA3C08806CDEE4E38AFED42CBA2512316"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">At the same time as the President transmits
to the Congress a special message pursuant to section 1011(b), the President
may direct that any congressional earmark to be repealed in that special
message shall not be made available for obligation for a period of 45 calendar
days of continuous session of the Congress after the date on which the
President transmits the special message to the Congress.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H42BADED912B547A28988E5855B109D45"><enum>(2)</enum><header display-inline="yes-display-inline">Early availability</header><text display-inline="yes-display-inline">The President shall make any congressional
earmark deferred pursuant to paragraph (1) available at a time earlier than the
time specified by the President if the President determines that continuation
of the deferral would not further the purposes of this Act.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H36583314CC8943C789A456E2F528912C"><enum>(b)</enum><header display-inline="yes-display-inline">Temporary presidential authority To suspend
a limited tariff benefit</header>
<paragraph commented="no" display-inline="no-display-inline" id="HF742408A2069430592628BD4CBCB9DEA"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">At the same time as the President transmits
to the Congress a special message pursuant to section 1011(b), the President
may suspend the implementation of any limited tariff benefit proposed to be
canceled in that special message for a period of 45 calendar days of continuous
session of the Congress after the date on which the President transmits the
special message to the Congress.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8662CDCBD5EF482FBFFDE1AF9268008B"><enum>(2)</enum><header display-inline="yes-display-inline">Early availability</header><text display-inline="yes-display-inline">The President shall terminate the
suspension of any limited tariff benefit at a time earlier than the time
specified by the President if the President determines that continuation of the
suspension would not further the purposes of this Act.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H93CFFFE31CA54532ABA339D3BEE666A9"><enum>(c)</enum><header display-inline="yes-display-inline">Temporary Presidential Authority To Suspend
a Targeted Tax Benefit</header>
<paragraph commented="no" display-inline="no-display-inline" id="HF79098991E2F40A88D438B34074E64F1"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">At the same time as the President transmits
to the Congress a special message pursuant to section 1011(b), the President
may suspend the implementation of any targeted tax benefit proposed to be
repealed in that special message for a period of 45 calendar days of continuous
session of the Congress after the date on which the President transmits the
special message to the Congress.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF15476F685F246F7B9CFC957DD24DDD4"><enum>(2)</enum><header display-inline="yes-display-inline">Early availability</header><text display-inline="yes-display-inline">The President shall terminate the
suspension of any targeted tax benefit at a time earlier than the time
specified by the President if the President determines that continuation of the
suspension would not further the purposes of this Act.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H1925324D2CF6441E982DB949FB00B388" section-type="subsequent-section"><enum>1014.</enum><header>Identification of targeted tax
benefits</header><subsection commented="no" display-inline="yes-display-inline" id="H47299A970E89465BB789FD6DBC622592"><enum>(a)</enum><header display-inline="yes-display-inline">Statement</header><text display-inline="yes-display-inline">The chairman of the Committee on Ways and
Means of the House of Representatives and the chairman of the Committee on
Finance of the Senate acting jointly (hereafter in this subsection referred to
as the <term>chairmen</term>) shall review any revenue or reconciliation bill
or joint resolution which includes any amendment to the Internal Revenue Code
of 1986 that is being prepared for filing by a committee of conference of the
two Houses, and shall identify whether such bill or joint resolution contains
any targeted tax benefits. The chairmen shall provide to the committee of
conference a statement identifying any such targeted tax benefits or declaring
that the bill or joint resolution does not contain any targeted tax benefits.
Any such statement shall be made available to any Member of Congress by the
chairmen immediately upon request.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H1734A72B8B4148FEA3D5475826DCEF59"><enum>(b)</enum><header display-inline="yes-display-inline">Statement Included in Legislation</header>
<paragraph commented="no" display-inline="no-display-inline" id="H16A6A7D5A50547168716F5453D6B6F55"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Notwithstanding any other rule of the House
of Representatives or any rule or precedent of the Senate, any revenue or
reconciliation bill or joint resolution which includes any amendment to the
Internal Revenue Code of 1986 reported by a committee of conference of the two
Houses may include, as a separate section of such bill or joint resolution, the
information contained in the statement of the chairmen, but only in the manner
set forth in paragraph (2).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD861A8328D2B44B6AEDF49517273E8A9"><enum>(2)</enum><header display-inline="yes-display-inline">Applicability</header><text display-inline="yes-display-inline">The separate section permitted under
subparagraph (A) shall read as follows: <quote>Section 1021 of the
Congressional Budget and Impoundment Control Act of 1974 shall ______ apply to
________.</quote>, with the blank spaces being filled in with—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HA8EE7E97230045CB8BEDDF386CF9EF0"><enum>(A)</enum><text display-inline="yes-display-inline">in any case in which the chairmen identify
targeted tax benefits in the statement required under subsection (a), the word
<term>only</term> in the first blank space and a list of all of the specific
provisions of the bill or joint resolution in the second blank space; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3BCCE4F87C1644E1B7CA73DA3D60DD52"><enum>(B)</enum><text display-inline="yes-display-inline">in any case in which the chairmen declare
that there are no targeted tax benefits in the statement required under
subsection (a), the word <term>not</term> in the first blank space and the
phrase <term>any provision of this Act</term> in the second blank space.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HDD13CA3A6E024E71956129D19371DC22"><enum>(c)</enum><header display-inline="yes-display-inline">Identification in Revenue
Estimate</header><text display-inline="yes-display-inline">With respect to any
revenue or reconciliation bill or joint resolution with respect to which the
chairmen provide a statement under subsection (a), the Joint Committee on
Taxation shall—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H69556CFC163A49FBA02DFBE0B4D3AF4E"><enum>(1)</enum><text display-inline="yes-display-inline">in the case of a statement described in
subsection (b)(2)(A), list the targeted tax benefits in any revenue estimate
prepared by the Joint Committee on Taxation for any conference report which
accompanies such bill or joint resolution, or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H62F8BAEEF7B046BBA627F0F8A9D0328F"><enum>(2)</enum><text display-inline="yes-display-inline">in the case of a statement described in 13
subsection (b)(2)(B), indicate in such revenue estimate that no provision in
such bill or joint resolution has been identified as a targeted tax
benefit.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H4476CD8910944BCE8F4DD8B3009CC066"><enum>(d)</enum><header display-inline="yes-display-inline">President’s Authority</header><text display-inline="yes-display-inline">If any revenue or reconciliation bill or
joint resolution is signed into law—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H3D1839F069344DC19F4776E84848713B"><enum>(1)</enum><text display-inline="yes-display-inline">with a separate section described in
subsection (b)(2), then the President may use the authority granted in this
section only with respect to any targeted tax benefit in that law, if any,
identified in such separate section; or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H64DD95B2592E480795D6442D90BA63DB"><enum>(2)</enum><text display-inline="yes-display-inline">without a separate section described in
subsection (b)(2), then the President may use the authority granted in this
section with respect to any targeted tax benefit in that law.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H266D2D134348451FA75354E6AB26CF00" section-type="subsequent-section"><enum>1015.</enum><header>Treatment of
cancellations</header><text display-inline="yes-display-inline">The repeal of any congressional earmark or
cancellation of any limited tariff benefit or targeted tax benefit shall take
effect only upon enactment of the applicable approval bill. If an approval bill
is not enacted into law before the end of the applicable period under section
1013, then all proposed repeals and cancellations contained in that bill shall
be null and void and any such congressional earmark, limited tariff benefit, or
targeted tax benefit shall be effective as of the original date provided in the
law to which the proposed repeals or cancellations applied.</text>
</section><section commented="no" display-inline="no-display-inline" id="HC210CC1B598B45E39166A812E44B9D91" section-type="subsequent-section"><enum>1016.</enum><header>Reports by Comptroller
General</header><text display-inline="yes-display-inline">With respect to each special message under
this part, the Comptroller General shall issue to the Congress a report
determining whether any congressional earmark is not repealed or limited tariff
benefit or targeted tax benefit continues to be suspended after the deferral
authority set forth in section 1013 of the President has expired.</text>
</section><section commented="no" display-inline="no-display-inline" id="HA030042AFD1F4D4A00D155D209028DD0" section-type="subsequent-section"><enum>1017.</enum><header>Definitions</header><text display-inline="yes-display-inline">As used in this part:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H2BC121AA8CB645BA8CAA9392728C6BDA"><enum>(1)</enum><header display-inline="yes-display-inline">Appropriation law</header><text display-inline="yes-display-inline">The term <term>appropriation law</term>
means an Act referred to in section 105 of title 1, United States Code,
including any general or special appropriation Act, or any Act making
supplemental, deficiency, or continuing appropriations, that has been signed
into law pursuant to Article I, section 7, of the Constitution of the United
States.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H01286B6129A14C11AA92C1CE00D1F035"><enum>(2)</enum><header display-inline="yes-display-inline">Approval bill</header><text display-inline="yes-display-inline">The term <term>approval bill</term> means a
bill or joint resolution which only approves proposed repeals of congressional
earmarks or cancellations of limited tariff benefits or targeted tax benefits
in a special message transmitted by the President under this part and—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H2F74EE4E1DEE45CFBF07613E7B6B47DF"><enum>(A)</enum><text display-inline="yes-display-inline">the title of which is as follows: <quote>A
bill approving the proposed repeals and cancellations transmitted by the
President on ___</quote>, the blank space being filled in with the date of
transmission of the relevant special message and the public law number to which
the message relates;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCD81F50979AD482A00CF577577621574"><enum>(B)</enum><text display-inline="yes-display-inline">which does not have a preamble;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H406D83AADC874977A9583493A3A3E800"><enum>(C)</enum><text display-inline="yes-display-inline">which provides only the following after the
enacting clause: <quote>That the Congress approves of proposed repeals and
cancellations ___</quote>, the blank space being filled in with a list of the
repeals and cancellations contained in the President’s special message,
<quote>as transmitted by the President in a special message on ____</quote>,
the blank space being filled in with the appropriate date, <quote>regarding
____.</quote>, the blank space being filled in with the public law number to
which the special message relates;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7546819F1E32486B87132EA304E4E673"><enum>(D)</enum><text display-inline="yes-display-inline">which only includes proposed repeals and
cancellations that are estimated by CBO to meet the definition of congressional
earmark or limited tariff benefits, or that are identified as targeted tax
benefits pursuant to section 1014; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE88EEE447E274C2182EC3D004496F496"><enum>(E)</enum><text display-inline="yes-display-inline">if no CBO estimate is available, then the
entire list of legislative provisions proposed by the President is inserted in
the second blank space in subparagraph (C).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H06C264DBE1A3480F97B5CD2A01FDA09"><enum>(3)</enum><header display-inline="yes-display-inline">Calendar day</header><text display-inline="yes-display-inline">The term <term>calendar day</term> means a
standard 24-hour period beginning at midnight.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H44F53736F7044557B159730074934F10"><enum>(4)</enum><header display-inline="yes-display-inline">Cancel or cancellation</header><text display-inline="yes-display-inline">The terms <term>cancel</term> or
<term>cancellation</term> means to prevent—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HA2B6AFB9572B4807884260CF0028C155"><enum>(A)</enum><text display-inline="yes-display-inline">a limited tariff benefit from having legal
force or effect, and to make any necessary, conforming statutory change to
ensure that such limited tariff benefit is not implemented; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA2A9B44FB53D40E78FEED8211B5156F7"><enum>(B)</enum><text display-inline="yes-display-inline">a targeted tax benefit from having legal
force or effect, and to make any necessary, conforming statutory change to
ensure that such targeted tax benefit is not implemented and that any budgetary
resources are appropriately canceled.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEE694AA361764ADD98C89B1F0900A099"><enum>(5)</enum><header display-inline="yes-display-inline">CBO</header><text display-inline="yes-display-inline">The term <term>CBO</term> means the
Director of the Congressional Budget Office.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H61BFC117578D412C9B24188223001FD6"><enum>(6)</enum><header display-inline="yes-display-inline">Congressional earmark</header><text display-inline="yes-display-inline">The term <term>congressional earmark</term>
means a provision or report language included primarily at the request of a
Member, Delegate, Resident Commissioner, or Senator providing, authorizing or
recommending a specific amount of discretionary budget authority, credit
authority, or other spending authority for a contract, loan, loan guarantee,
grant, loan authority, or other expenditure with or to an entity, or targeted
to a specific State, locality or Congressional district, other than through a
statutory or administrative formula-driven or competitive award process.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4D4F172BB6B840CAB53F54B852FC4DB6"><enum>(7)</enum><header display-inline="yes-display-inline">Entity</header><text display-inline="yes-display-inline">As used in paragraph (6), the term
<term>entity</term> includes a private business, State, territory or locality,
or Federal entity.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB32416BBB3374151BB0037C25D79E215"><enum>(8)</enum><header display-inline="yes-display-inline">Limited tariff benefit</header><text display-inline="yes-display-inline">The term <term>limited tariff
benefit</term> means any provision of law that modifies the Harmonized Tariff
Schedule of the United States in a manner that benefits 10 or fewer entities
(as defined in paragraph (12)(B)).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H70F93524C49C432D827DB766C98DE35"><enum>(9)</enum><header display-inline="yes-display-inline">OMB</header><text display-inline="yes-display-inline">The term <term>OMB</term> means the
Director of the Office of Management and Budget.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H93C52CBBC1B342369BABB48B00A6D5AF"><enum>(10)</enum><header display-inline="yes-display-inline">Omnibus reconciliation or appropriation
measure</header><text display-inline="yes-display-inline">The term
<term>omnibus reconciliation or appropriation measure</term> means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H9DB1DDCEB98943309922AA1F58E72D00"><enum>(A)</enum><text display-inline="yes-display-inline">in the case of a reconciliation bill, any
such bill that is reported to its House by the Committee on the Budget;
or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAA359348DD6840F9A007F8CF5EA184A5"><enum>(B)</enum><text display-inline="yes-display-inline">in the case of an appropriation measure,
any such measure that provides appropriations for programs, projects, or
activities falling within 2 or more section 302(b) suballocations.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id747F54D77BFA4C15B082D951B05516F1"><enum>(11)</enum><header display-inline="yes-display-inline">Targeted tax benefit</header><text display-inline="yes-display-inline">The term <term>targeted tax benefit</term>
means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id43A74972A06F4931A3DBBB52F17E5EC4"><enum>(A)</enum><text display-inline="yes-display-inline">any revenue provision that—</text>
<clause commented="no" display-inline="no-display-inline" id="id71828D83D08C4F8785E4B7041B3DD9C1"><enum>(i)</enum><text display-inline="yes-display-inline">provides a Federal tax deduction, credit,
exclusion, or preference to a particular beneficiary or limited group of
beneficiaries under the Internal Revenue Code of 1986; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idF833F1DE3E4D4D4E9752933DF4317237"><enum>(ii)</enum><text display-inline="yes-display-inline">contains eligibility criteria that are not
uniform in application with respect to potential beneficiaries of such
provision; or</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idA42D0B6152F84173853162193FDB8348"><enum>(B)</enum><text display-inline="yes-display-inline">any Federal tax provision which provides
one beneficiary temporary or permanent transition relief from a change to the
Internal Revenue Code of 1986.</text>
</subparagraph></paragraph></section><section commented="no" display-inline="no-display-inline" id="H5058BE8815DC4065BD1DA591104688B1" section-type="subsequent-section"><enum>1018.</enum><header>Expiration</header><text display-inline="yes-display-inline">This title shall have no force or effect on
or after December 31,
2014</text>
</section></part><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="H6BEDAA1A36FF4F0384EA1B98A08B3620" section-type="subsequent-section"><enum>1203.</enum><header display-inline="yes-display-inline">Technical and conforming
amendments</header>
<subsection commented="no" display-inline="no-display-inline" id="HE18C1718208C4C44A4948C13CBD68548"><enum>(a)</enum><header display-inline="yes-display-inline">Exercise of Rulemaking Powers</header><text display-inline="yes-display-inline">Section 904 of the Congressional Budget Act
of 1974 (2 U.S.C. 621 note) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H49748BC582584D04BA1183ABCFF38646"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a), by striking
<quote>1017</quote> and inserting <quote>1012</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6FBB6E81375343988DCB3128BC24B545"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (d), by striking
<quote>section 1017</quote> and inserting <quote>section 1012</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HA6FF1882578C49FA91461B7EED5CE820"><enum>(b)</enum><header display-inline="yes-display-inline">Analysis by Congressional Budget
Office</header><text display-inline="yes-display-inline">Section 402 of the
Congressional Budget Act of 1974 is amended by inserting <quote>(a)</quote>
after <quote>402.</quote> and by adding at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="H4E41AAAB66C242FAA857222C858980A4" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HA5A7FF6605E04EBF92B43EB1E1EA94F7"><enum>(b)</enum><text display-inline="yes-display-inline">Upon the receipt of a special message under
section 1011 proposing to repeal any congressional earmark, the Director of the
Congressional Budget Office shall prepare an estimate of the savings in budget
authority or outlays resulting from such proposed repeal relative to the most
recent levels calculated consistent with the methodology used to calculate a
baseline under section 257 of the Balanced Budget and Emergency Deficit Control
Act of 1985 and included with a budget submission under section 1105(a) of
title 31, United States Code, and transmit such estimate to the chairmen of the
Committees on the Budget of the House of Representatives and
Senate.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H5E5D93ABD80A45B59FD20455E38F6B09"><enum>(c)</enum><header display-inline="yes-display-inline">Clerical Amendments</header><paragraph commented="no" display-inline="yes-display-inline" id="H6A4597C96C2345580034FF1537CE4915"><enum>(1)</enum><text display-inline="yes-display-inline">Section 1(a) of the Congressional Budget
and Impoundment Control Act of 1974 is amended by striking the last
sentence.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7A5CAD69010C4DE5A1A42D9B7D6FAE18" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">Section 1022(c) of such Act (as
redesignated) is amended is amended by striking <quote>rescinded or that is to
be reserved</quote> and insert <quote>canceled</quote> and by striking
<quote>1012</quote> and inserting <quote>1011</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCC0B3EABEB004EBB8C33D188F6D4E6BD" indent="up1"><enum>(3)</enum><header display-inline="yes-display-inline">Table of Contents</header><text display-inline="yes-display-inline">The table of contents set forth in section
1(b) of the Congressional Budget and Impoundment Control Act of 1974 is amended
by deleting the contents for parts B and C of title X and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="H6F054D1DCB654A29A0CD78C4AB200158" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry bold="off" level="part">Part B—Legislative Line-Item
Veto</toc-entry>
<toc-entry bold="off" level="section">Sec. 1011. Line-item veto
authority.</toc-entry>
<toc-entry bold="off" level="section">Sec. 1012. Procedures for
expedited consideration.</toc-entry>
<toc-entry bold="off" level="section">Sec. 1013. Presidential
deferral authority.</toc-entry>
<toc-entry bold="off" level="section">Sec. 1014. Identification of
targeted tax benefits.</toc-entry>
<toc-entry bold="off" level="section">Sec. 1015. Treatment of
cancellations.</toc-entry>
<toc-entry bold="off" level="section">Sec. 1016. Reports by
Comptroller General.</toc-entry>
<toc-entry bold="off" level="section">Sec. 1017.
Definitions.</toc-entry>
<toc-entry bold="off" level="section">Sec. 1018.
Expiration.</toc-entry>
<toc-entry bold="off" level="section">Sec. 1019. Suits by Comptroller
General.</toc-entry>
<toc-entry bold="off" level="section">Sec. 1020. Proposed Deferrals
of budget
authority.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H3187CA9994334453AAEDE3244F722FCE"><enum>(d)</enum><header display-inline="yes-display-inline">Effective
Date</header><text display-inline="yes-display-inline">The amendments made by
this subtitle shall take effect on the date of its enactment and apply only to
any congressional earmark, limited tariff benefit, or targeted tax benefit
provided in an Act enacted on or after the date of enactment of this
Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H037A9120BA594EFE85FFE5F2CC84CD" section-type="subsequent-section"><enum>1204.</enum><header display-inline="yes-display-inline">Sense of Congress on abuse of proposed
repeals and cancellations</header><text display-inline="no-display-inline">It
is the sense of Congress no President or any executive branch official should
condition the inclusion or exclusion or threaten to condition the inclusion or
exclusion of any proposed repeal or cancellation in any special message under
this section upon any vote cast or to be cast</text>
</section></subtitle><subtitle id="idC9DD6D2327714794AFCD5709B1962B5F"><enum>C</enum><header>Restoring strong
Pay-As-You-Go requirements</header>
<section id="H446D26B07C7E40E38EAAE891840F01AD"><enum>1301.</enum><header>Definitions</header><text display-inline="no-display-inline">As used in this subtitle—</text>
<paragraph id="H47822A96530D4D85817ACE0D397490EA"><enum>(1)</enum><text>The term
<term>BBEDCA</term> means the Balanced Budget and Emergency Deficit Control Act
of 1985.</text>
</paragraph><paragraph id="HB4D5305A6A2D476E944CDC297F451822"><enum>(2)</enum><text>The definitions
set forth in section 3 of the Congressional Budget and Impoundment Control Act
of 1974 and in section 250 of BBEDCA shall apply to this subtitle, except to
the extent that they are specifically modified as follows:</text>
<subparagraph display-inline="no-display-inline" id="HBEED464284604EFC80003F2D7B2147A2"><enum>(A)</enum><text>The term
<term>outyear</term> means a fiscal year that occurs one or more years after
the budget year.</text>
</subparagraph><subparagraph id="H3A6F1759B3BC44AB9C99D06E41DA31AC"><enum>(B)</enum><text display-inline="yes-display-inline">In section 250(c)(8)(C), the reference to
the food stamp program shall be deemed to be a reference to the Supplemental
Nutrition Assistance Program.</text>
</subparagraph></paragraph><paragraph id="H4C1BAC4B204040FCBED567CDA83280BA"><enum>(3)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HC5CD51DFF73C4AF2A0FDC062AEE65CB4"><enum>(A)</enum><text>The term <term>budgetary
effects</term> means the amounts by which PAYGO legislation changes direct
spending or revenues relative to the baseline and shall be determined on the
basis of estimates included by reference in the PAYGO Act or prepared under
section 4(d)(3), as applicable. Budgetary effects that increase direct spending
or decrease revenues are termed <term>costs</term> and budgetary effects that
increase revenues or decrease direct spending are termed
<term>savings</term>.</text>
</subparagraph><subparagraph id="H3AA4ECC50E7C4377A29F8D0D9505DB91" indent="up1"><enum>(B)</enum><text>For purposes of these definitions,
off-budget effects shall be counted as budgetary effects unless such changes
flow directly from amendments to title II of the Social Security Act and
related provisions of the Internal Revenue Code of 1986 and debt service
effects shall not be counted as budgetary effects.</text>
</subparagraph><subparagraph id="H8AD1C51D48D84F6E8FCB3496A8E7D99E" indent="up1"><enum>(C)</enum><text display-inline="yes-display-inline">Solely for purposes of recording entries on
a PAYGO scorecard, provisions in appropriations Acts are also considered to be
budgetary effects for purposes of this subtitle if such provisions make outyear
modifications to substantive law, except that provisions for which the outlay
effects net to zero over a period consisting of the current year, the budget
year, and the 4 subsequent years shall not be considered budgetary effects. For
purposes of this paragraph, the term, <term>modifications to substantive
law</term> refers to changes to or restrictions on entitlement law or other
mandatory spending contained in appropriations Acts, notwithstanding section
250(c)(8) of BBEDCA. Provisions in appropriations Acts that are neither outyear
modifications to substantive law nor changes in revenues have no budgetary
effects for purposes of this subtitle.</text>
</subparagraph><subparagraph id="H57E20B9C73A74BA2BADF5A878FDDAC29" indent="up1"><enum>(D)</enum><text>If a provision is designated as an
emergency requirement under this subtitle and is also designated as an
emergency requirement under the applicable rules of the House of
Representatives, CBO shall not include the cost of such a provision in its
estimate of the PAYGO legislation’s budgetary effects.</text>
</subparagraph></paragraph><paragraph id="HC39FDDED5A224F56AB38AAE141F6A4DE"><enum>(4)</enum><text>The term
<term>debit</term> refers to the net total amount, when positive, by which
costs recorded on the PAYGO scorecards for a fiscal year exceed savings
recorded on those scorecards for that year.</text>
</paragraph><paragraph id="H5118C14DC93044E49B1FCE4235AAFBE4"><enum>(5)</enum><text>The term
<term>entitlement law</term> refers to a section of law which provides
entitlement authority.</text>
</paragraph><paragraph id="H71962ADEDCC4467DB378E73AA440AA46"><enum>(6)</enum><text display-inline="yes-display-inline">The term <term>PAYGO legislation</term> or
a <term>PAYGO Act</term> refers to a bill or joint resolution that affects
direct spending or revenue relative to the baseline. The budgetary effects of
changes in revenues and outyear modifications to substantive law included in
appropriation Acts as defined in paragraph (4) shall be treated as if they were
contained in PAYGO legislation.</text>
</paragraph><paragraph commented="no" id="H01500CD34F174CB2B87458D2DD58F27A"><enum>(7)</enum><text>The term
<term>timing shift</term> refers to a delay of the date on which direct
spending would otherwise occur from the ninth outyear to the tenth outyear or
an acceleration of the date on which revenues would otherwise occur from the
tenth outyear to the ninth outyear.</text>
</paragraph></section><section commented="no" id="H09F10A6015394E16B299FAA9AFE3581E"><enum>1302.</enum><header>PAYGO
estimates and PAYGO scorecards</header>
<subsection id="HDF3AE03709204DB4BA41CEBC8BA3749B"><enum>(a)</enum><header>PAYGO
estimates</header><paragraph commented="no" display-inline="yes-display-inline" id="H73F726F14655455E88E5BBF3E5953C18"><enum>(1)</enum><text display-inline="yes-display-inline">A PAYGO Act shall include by reference an
estimate of its budgetary effects as determined under section 308(a)(3) of the
Congressional Budget Act of 1974, if timely submitted for printing in the
Congressional Record by the chairs of the Committees on the Budget of the House
of Representatives and the Senate, as applicable, before the vote on the PAYGO
legislation. The Clerk of the House or the Secretary of the Senate, as
applicable, shall also incorporate by reference such estimate printed in the
relevant portion of the Congressional Record under section 308(a)(3) of the
Congressional Budget Act of 1974 into the enrollment of a PAYGO Act. Budgetary
effects that are not so included shall be determined under section
1304(d)(3).</text>
</paragraph><paragraph id="H6A6A35217DFF47AE821A1AC7A3F2A087" indent="up1"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H6FD0BA1E38474A8AB011067DFD1C042F"><enum>(A)</enum><text>Section 308(a) of the
Congressional Budget Act of 1974 is amended by adding at the end the following
new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H1886DD5B3C2242E196A7B9EBE740E0BF" style="OLC">
<paragraph id="H30EF9915B46F4567B113DA244448652C"><enum>(3)</enum><header>CBO paygo
estimates</header><text display-inline="yes-display-inline">Before a vote in
either House on a PAYGO Act that, if determined in the affirmative, would clear
such Act for enrollment, the chairs of the Committees on the Budget of the
House and Senate, as applicable, shall request from the Director of the
Congressional Budget Office an estimate of the budgetary effects of such Act
under the <short-title>Control Spending Now
Act</short-title>. If such an estimate is timely provided, the chairs of the
Committees on the Budget of the House of Representatives and the Senate shall
post such estimate on their respective committee websites and cause it to be
printed in the Congressional Record under the heading <quote>PAYGO
ESTIMATE</quote>. For purposes of this section, the Director of the
Congressional Budget Office shall not count timing shifts in his estimates of
the budgetary effects of PAYGO legislation (as defined in section 1301 of the
<short-title>Control Spending Now
Act</short-title>).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HFC0F4B744A4D4F389F996E74602B3A70" indent="up1"><enum>(B)</enum><text>The side heading of section 308(a) of
the Congressional Budget Act of 1974 is amended by striking
<quote><header-in-text level="subsection" style="OLC">Reports
on</header-in-text></quote>.</text>
</subparagraph></paragraph></subsection><subsection display-inline="no-display-inline" id="HBFD5BEC15FA245AF8D393E744227DB14"><enum>(b)</enum><text display-inline="yes-display-inline">Section 308 of the Congressional Budget Act
of 1974 is amended by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HDF47C6592AD64AFF888AC9F1E8418F8A" style="OLC">
<subsection id="H290D7181058E498A86D109659086607D"><enum>(d)</enum><header>Scorekeeping
guidelines</header><text display-inline="yes-display-inline">The Director of
the Congressional Budget Office shall provide estimates under this section in
accordance with the scorekeeping guidelines determined under section 252(d)(5)
of the Balanced Budget and Emergency Deficit Control Act of 1985. Upon
agreement, the chairs of the Committees on the Budget of the House of
Representatives and the Senate shall submit updates to such guidelines for
printing in the Congressional
Record.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="HE932921692374BE4856B4BF27B814B3F"><enum>(c)</enum><header>OMB PAYGO
scorecards</header>
<paragraph commented="no" id="H22C129AD42494D7E9915FE18224796CB"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">OMB shall maintain
and make publicly available a continuously updated document containing two
PAYGO scorecards displaying the budgetary effects of PAYGO legislation as
determined under section 308 of the Congressional Budget Act of 1974, applying
the look-back requirement in subsection (e) and the averaging requirement in
subsection (f), and a separate addendum displaying the estimates of the costs
of provisions designated in statute as emergency requirements.</text>
</paragraph><paragraph display-inline="no-display-inline" id="HD0517AD7E4414E169662EB1326237257"><enum>(2)</enum><header>Estimates in
legislation</header><text display-inline="yes-display-inline">Except as
provided in paragraph (3), in making the calculations for the PAYGO scorecards,
OMB shall use the budgetary effects included by reference in the applicable
legislation.</text>
</paragraph><paragraph commented="no" id="H4FC4B7C45D8B42E4BC95D17A245FF13E"><enum>(3)</enum><header>OMB
estimates</header><text display-inline="yes-display-inline">If legislation does
not contain the estimate of budgetary effects under paragraph (2), then OMB
shall score the budgetary effects of that legislation upon its enactment, based
on the approaches to scorekeeping set forth in this subtitle.</text>
</paragraph><paragraph commented="no" id="H1E6923D8124E4E4585C222644A3314A4"><enum>(4)</enum><header>5-year
scorecard</header><text>The first scorecard shall display the budgetary effects
of PAYGO legislation in each year over the 5-year period beginning in the
budget year.</text>
</paragraph><paragraph commented="no" id="H49EB3EFF3AC64181B23E8181D05B77BD"><enum>(5)</enum><header>10-year
scorecard</header><text>The second scorecard shall display the budgetary
effects of PAYGO legislation in each year over the 10-year period beginning in
the budget year.</text>
</paragraph></subsection><subsection commented="no" id="H778018FC57514E0C815ECE9FAE00FCFE"><enum>(d)</enum><header>Look-Back To
capture current-Year effects</header><text>For purposes of this section, OMB
shall treat the budgetary effects of PAYGO legislation enacted during a session
of Congress that occur during the current year as though they occurred in the
budget year.</text>
</subsection><subsection commented="no" id="HAE3B41BE1DC4410BA80B7EC2D7F2ED88"><enum>(e)</enum><header>Averaging used
to measure compliance over 5-Year and 10-Year periods</header><text>OMB shall
cumulate the budgetary effects of a PAYGO Act over the budget year (which
includes any look-back effects under subsection (d)) and—</text>
<paragraph commented="no" id="H145A92644DEE4CEDB6B18A7FA6FD97BE"><enum>(1)</enum><text>for purposes of
the 5-year scorecard referred to in subsection (c)(4), the four subsequent
outyears, divide that cumulative total by five, and enter the quotient in the
budget-year column and in each subsequent column of the 5-year PAYGO scorecard;
and</text>
</paragraph><paragraph commented="no" id="H3C249271E70E4D00BB4F53790CEA070F"><enum>(2)</enum><text display-inline="yes-display-inline">for purposes of the 10-year scorecard
referred to in subsection (c)(5), the nine subsequent outyears, divide that
cumulative total by ten, and enter the quotient in the budget-year column and
in each subsequent column of the 10-year PAYGO scorecard.</text>
</paragraph></subsection></section><section id="HD5960ED7A8E8438C99BDC3CA1DDD9AC9"><enum>1303.</enum><header>Annual report
and sequestration order</header>
<subsection id="H89F07D10CE6B4EB882337CD4BC446327"><enum>(a)</enum><header>Annual
report</header><text display-inline="yes-display-inline">Not later than 14 days
(excluding weekends and holidays) after Congress adjourns to end a session, OMB
shall make publicly available and cause to be printed in the Federal Register
an annual PAYGO report. The report shall include an up-to-date document
containing the PAYGO scorecards, information about emergency legislation (if
any) designated under this subtitle, information about any sequestration if
required by subsection (b), and other data and explanations that enhance public
understanding of this subtitle and actions taken under it.</text>
</subsection><subsection id="H18EEEE739C614BB9AE0A5798D8027A16"><enum>(b)</enum><header>Sequestration
order</header><text display-inline="yes-display-inline">If the annual report
issued at the end of a session of Congress under subsection (a) shows a debit
on either PAYGO scorecard for the budget year, OMB shall prepare and the
President shall issue and include in that report a sequestration order that,
upon issuance, shall reduce budgetary resources of direct spending programs by
enough to offset that debit as prescribed in section 1306. If there is a debit
on both scorecards, the order shall fully offset the larger of the two debits.
OMB shall include that order in the annual report and transmit it to the House
of Representatives and the Senate. If the President issues a sequestration
order, the annual report shall contain, for each budget account to be
sequestered, estimates of the baseline level of budgetary resources subject to
sequestration, the amount of budgetary resources to be sequestered, and the
outlay reductions that will occur in the budget year and the subsequent fiscal
year because of that sequestration.</text>
</subsection></section><section id="HF841F7CDB1654B5399149487DAE5B2DB"><enum>1304.</enum><header>Calculating a
sequestration</header>
<subsection id="HDEC7D422276543D0909120D13E47FFC4"><enum>(a)</enum><header>Reducing
nonexempt budgetary resources by a uniform percentage</header><text>OMB shall
calculate the uniform percentage by which the budgetary resources of nonexempt
direct spending programs are to be sequestered such that the outlay savings
resulting from that sequestration, as calculated under subsection (b), shall
offset the budget-year debit, if any on the applicable PAYGO scorecard. If the
uniform percentage calculated under the prior sentence exceeds 4 percent, the
Medicare programs described in section 256(d) of BBEDCA shall be reduced by 4
percent and the uniform percentage by which the budgetary resources of all
other nonexempt direct spending programs are to be sequestered shall be
increased, as necessary, so that the sequestration of Medicare and of all other
nonexempt direct spending programs together produce the required outlay
savings.</text>
</subsection><subsection id="H7739EF7DBA9245FAB16CED52629D5955"><enum>(b)</enum><header>Outlay
savings</header><text>In determining the amount by which a sequestration
offsets a budget-year debit, OMB shall count—</text>
<paragraph id="H1E3C6BCAF6EF47E7BA40B68B04F3FF3E"><enum>(1)</enum><text>the amount by
which the sequestration in a crop year of crop support payments, pursuant to
section 256(j) of BBEDCA, reduces outlays in the budget year and the subsequent
fiscal year;</text>
</paragraph><paragraph id="HC5F151B225CC4B40A86429D29334BF57"><enum>(2)</enum><text>the amount by
which the sequestration of Medicare payments in the 12-month period following
the sequestration order, pursuant to section 256(d) of BBEDCA, reduces outlays
in the budget year and the subsequent fiscal year; and</text>
</paragraph><paragraph id="HF02F82B78D524143B909BD38E1C1230A"><enum>(3)</enum><text>the amount by
which the sequestration in the budget year of the budgetary resources of other
nonexempt mandatory programs reduces outlays in the budget year and in the
subsequent fiscal year.</text>
</paragraph></subsection></section><section id="HB788DA3AB9F54A82ADAC840A6FDF37DC"><enum>1305.</enum><header>Application of
BBEDCA</header><text display-inline="no-display-inline">For purposes of this
subtitle—</text>
<paragraph id="H31D033242F6F4F65875E77028627AE5C"><enum>(1)</enum><text>notwithstanding
section 275 of BBEDCA, the provisions of sections 255, 256, 257, and 274 of
BBEDCA, as amended by this subtitle, shall apply to the provisions of this
subtitle;</text>
</paragraph><paragraph id="H5FFF30D2768E479C8F57F28137A73C9C"><enum>(2)</enum><text>references in
sections 255, 256, 257, and 274 to <quote>this part</quote> or <quote>this
title</quote> shall be interpreted as applying to this subtitle;</text>
</paragraph><paragraph id="H515F19DFDB7F43FC9599FE868037F915"><enum>(3)</enum><text>references in
sections 255, 256, 257, and 274 of BBEDCA to <quote>section 254</quote> shall
be interpreted as referencing section 1303 of this subtitle;</text>
</paragraph><paragraph id="H548BDA29080C4C4BB2ADC61C3A4B2557"><enum>(4)</enum><text>the reference in
section 256(b) of BBEDCA to <quote>section 252 or 253</quote> shall be
interpreted as referencing section 1303 of this subtitle;</text>
</paragraph><paragraph id="HAEEB9E2643AA470AB58B373E0E1127F9"><enum>(5)</enum><text>the reference in
section 256(d)(1) of BBEDCA to <quote>section 252 or 253</quote> shall be
interpreted as referencing section 1304 of this subtitle;</text>
</paragraph><paragraph id="H247E3C488DD445C1A369F099EB8E5107"><enum>(6)</enum><text>the reference in
section 256(d)(4) of BBEDCA to <quote>section 252 or 253</quote> shall be
interpreted as referencing section 1303 of this subtitle;</text>
</paragraph><paragraph id="H7F85C716D6AA4B9DB32450076FFFD9AF"><enum>(7)</enum><text>section 256(k) of
BBEDCA shall apply to a sequestration, if any, under this subtitle; and</text>
</paragraph><paragraph id="HB97997D427AC449DBE590BB8CC8DA67F"><enum>(8)</enum><text display-inline="yes-display-inline">references in section 257(e) of BBEDCA to
<quote>section 251, 252, or 253</quote> shall be interpreted as referencing
section 1302 of this subtitle.</text>
</paragraph></section><section id="H77BC0A91FA404DA6B50A19B2ABFF8CB6"><enum>1306.</enum><header>Technical
corrections</header>
<subsection id="H1ED0F99BE44545FCB896BD4109DE70EC"><enum>(a)</enum><text>Section 250(c)(18)
of BBEDCA is amended by striking <quote>the expenses the Federal deposit
insurance agencies</quote> and inserting <quote>the expenses of the Federal
deposit insurance agencies</quote>.</text>
</subsection><subsection id="H700EAE14E485432387142E7F51097D22"><enum>(b)</enum><text>Section 256(k)(1)
of BBEDCA is amended by striking <quote>in paragraph (5)</quote> and inserting
<quote>in paragraph (6)</quote>.</text>
</subsection></section><section id="HBB3E8975B4FA4B3999624FB94CE95129"><enum>1307.</enum><header>Conforming
amendments</header>
<subsection id="HCB028E5AEFA147BD9E6AE9C17EBBAEB4"><enum>(a)</enum><text>Section 256(a) of
BBEDCA is repealed.</text>
</subsection><subsection id="HEE6988CB1A0C4595AE8EDDA7DADD34A3"><enum>(b)</enum><text>Section 256(b) of
BBEDCA is amended by striking <quote>origination fees under sections 438(c)(2)
and 455(c) of that Act shall each be increased by 0.50 percentage
point.</quote> and inserting in lieu thereof <quote>origination fees under
sections 438(c) (2) and (6) and 455(c) and loan processing and issuance fees
under section 428(f)(1)(A)(ii) of that Act shall each be increased by the
uniform percentage specified in that sequestration order, and, for student
loans originated during the period of the sequestration, special allowance
payments under section 438(b) of that Act accruing during the period of the
sequestration shall be reduced by the uniform percentage specified in that
sequestration order.</quote>.</text>
</subsection><subsection id="HB8AF5D793EF5499C8EB2B56A8BDC4179"><enum>(c)</enum><text>Section 256(c) of
BBEDCA is repealed.</text>
</subsection><subsection id="HEDFC6653BF334A2982F2899805226518"><enum>(d)</enum><text>Section 256(d) of
BBEDCA is amended—</text>
<paragraph id="H0042D62FFB7549B0842B2127790E250F"><enum>(1)</enum><text>by redesignating
paragraphs (2), (3), and (4) as paragraphs (3), (5), and (6);</text>
</paragraph><paragraph id="HFDAA4185C61543D587A768B75832B59C"><enum>(2)</enum><text>by amending
paragraph (1) to read as follows:</text>
<quoted-block id="H6D574275F34642E18A545C83AE6E3D7D" style="OLC">
<paragraph id="HFD512B0068714EB8998B6A2FAEA06FCD"><enum>(1)</enum><header>Calculation of
reduction in payment amounts</header><text>To achieve the total percentage
reduction in those programs required by section 252 or 253, subject to
paragraph (2), and notwithstanding section 710 of the Social Security Act, OMB
shall determine, and the applicable Presidential order under section 254 shall
implement, the percentage reduction that shall apply, with respect to the
health insurance programs under title XVIII of the Social Security Act—</text>
<subparagraph id="H142C59DAF2F24A8782C736D0886981A3"><enum>(A)</enum><text>in the case of
parts A and B of such title, to individual payments for services furnished
during the one-year period beginning on the first day of the first month
beginning after the date the order is issued (or, if later, the date specified
in paragraph (4)); and</text>
</subparagraph><subparagraph id="H6D504BA8B328491BA9A678EFB199333D"><enum>(B)</enum><text>in the case of
parts C and D, to monthly payments under contracts under such parts for the
same one-year period;</text>
</subparagraph><continuation-text continuation-text-level="paragraph">such that
the reduction made in payments under that order shall achieve the required
total percentage reduction in those payments for that
period.</continuation-text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H3AD5C7B9EF564D79B7A6423633BEF70F"><enum>(3)</enum><text>by inserting after
paragraph (1) the following:</text>
<quoted-block id="HF505DEB067CF4C639703EC6E90D38F28" style="OLC">
<paragraph id="H23B5FEB44BDC4B3EBC0C6F3AD051CE76"><enum>(2)</enum><header>Uniform
reduction rate; maximum permissible reduction</header><text>Reductions in
payments for programs and activities under such title XVIII pursuant to a
sequestration order under section 254 shall be at a uniform rate, which shall
not exceed 4 percent, across all such programs and activities subject to such
order.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="HAA1C8AD320D54658AB448D0DF3B6E629"><enum>(4)</enum><text>by inserting after
paragraph (3), as redesignated, the following:</text>
<quoted-block id="H909C38E4BEA4450398D7A73DFADE1E9C" style="OLC">
<paragraph id="HEC05BDD210504FD6AE1A744F4D0EAF58"><enum>(4)</enum><header>Timing of
subsequent sequestration order</header><text>A sequestration order required by
section 252 or 253 with respect to programs under such title XVIII shall not
take effect until the first month beginning after the end of the effective
period of any prior sequestration order with respect to such programs, as
determined in accordance with paragraph
(1).</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H02DF39A2608647B58CB56A05C6D847C0"><enum>(5)</enum><text>in paragraph (6),
as redesignated, to read as follows:</text>
<quoted-block id="H91364823ED2540E28209BA6A25E4F875" style="OLC">
<paragraph id="HA47AFB2EA1E344D18D3BEF1FD1F93E5C"><enum>(6)</enum><header>Sequestration
disregarded in computing payment amounts</header><text>The Secretary of Health
and Human Services shall not take into account any reductions in payment
amounts which have been or may be effected under this part, for purposes of
computing any adjustments to payment rates under such title XVIII, specifically
including—</text>
<subparagraph id="H02F9439BCFA644B29A648F6C921EF57B"><enum>(A)</enum><text>the part C growth
percentage under section 1853(c)(6);</text>
</subparagraph><subparagraph id="H26D50AC0E2734DE2975751EF51203EDB"><enum>(B)</enum><text>the part D annual
growth rate under section 1860D–2(b)(6); and</text>
</subparagraph><subparagraph id="H21BE8CDF5D7C4DCC8DF68ABC10AC8D3E"><enum>(C)</enum><text>application of
risk corridors to part D payment rates under section
1860D–15(e).</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H278E819752D241ACB0F8C7B80C7280DA"><enum>(6)</enum><text>by adding after
paragraph (6), as redesignated, the following:</text>
<quoted-block id="H74783A86E8FC43FD969B0F9056B84453" style="OLC">
<paragraph id="HCB199427A65B4D05AB6E69001F9D31A4"><enum>(7)</enum><header>Exemptions from
sequestration</header><text>In addition to the programs and activities
specified in section 255, the following shall be exempt from sequestration
under this part:</text>
<subparagraph id="H886C00D7373C4EC19201282FFC3BABD1"><enum>(A)</enum><header>Part d
low-income subsidies</header><text>Premium and cost-sharing subsidies under
section 1860D–14 of the Social Security Act.</text>
</subparagraph><subparagraph id="HD4A807DE930A42A4B08430B79EA563C1"><enum>(B)</enum><header>Part d
catastrophic subsidy</header><text>Payments under section 1860D–15(b) and
(e)(2)(B) of the Social Security Act.</text>
</subparagraph><subparagraph id="H362CE1C6EB0C4E83A751CE6A64AC8361"><enum>(C)</enum><header>Qualified
individual (QI) premiums</header><text>Payments to States for coverage of
Medicare cost-sharing for certain low-income Medicare beneficiaries under
section 1933 of the Social Security
Act.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="H39480615272245E5A1D3B747CC1C7DAE"><enum>1308.</enum><header>Exempt
programs and activities</header>
<subsection id="HBA3A09026E18460DB64EFBF8CB255EF8"><enum>(a)</enum><header>Designations</header><text>Section
255 of BBEDCA is amended by redesignating subsection (i) as (j) and striking
<quote>1998</quote> and inserting in lieu thereof <quote>2010</quote>.</text>
</subsection><subsection id="HF15A03DE777F4A2F8E055C551B15845C"><enum>(b)</enum><header>Social security,
veterans programs, net interest, and tax credits</header><text>Subsections (a)
through (d) of section 255 of BBEDCA are amended to read as follows:</text>
<quoted-block id="H90AEA7DAE14143BBA7A81553B6A00F69" style="OLC">
<subsection id="H347C65826CEA476896A5F185721EEBE7"><enum>(a)</enum><header>Social security
benefits and tier I railroad retirement benefits</header><text>Benefits payable
under the old-age, survivors, and disability insurance program established
under title II of the Social Security Act (42 U.S.C. 401 et seq.), and benefits
payable under section 231b(a), 231b(f)(2), 231c(a), and 231c(f) of title 45
United States Code, shall be exempt from reduction under any order issued under
this part.</text>
</subsection><subsection id="H564653E71B0C4FB5B7DCD415A57D4F87"><enum>(b)</enum><header>Veterans
programs</header><text>The following program shall be exempt from reduction
under any order issued under this part—</text>
<list level="paragraph">
<list-item>All programs administered by the Department of
Veterans Affairs.</list-item>
<list-item>Special Benefits for Certain World War II Veterans
(28–0401–0–1–701).</list-item></list>
</subsection><subsection id="H9FA58143B4954BA68C59D227407AD326"><enum>(c)</enum><header>Net
interest</header><text>No reduction of payments for net interest (all of major
functional category 900) shall be made under any order issued under this
part.</text>
</subsection><subsection id="H02E30B5DC0B34A199CB73CE9926F6806"><enum>(d)</enum><header>Refundable
income tax credits</header><text>Payments to individuals made pursuant to
provisions of the Internal Revenue Code of 1986 establishing refundable tax
credits shall be exempt from reduction under any order issued under this
part.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H760F2E82A68348F8A455ABDE1DDDFACF"><enum>(c)</enum><header>Other programs
and activities, low-Income programs, and economic recovery
programs</header><text>Subsections (g) and (h) of section 255 of BBEDCA are
amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H0045BF81251C4D179F3A9D1D3BC661FF" style="OLC">
<subsection id="H1F62E54B4BBF487C924B62E1E08FE3AC"><enum>(g)</enum><header>Other programs
and activities</header>
<paragraph id="HE960B2673BC84203A6DC936F00C268AC"><enum>(1)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H6A7F8698C8C840EF918328E95014E4DC"><enum>(A)</enum><text>The following budget
accounts and activities shall be exempt from reduction under any order issued
under this part:</text>
<list level="subparagraph">
<list-item>Activities resulting from private donations,
bequests, or voluntary contributions to the Government.</list-item>
<list-item>Activities financed by voluntary payments to the
Government for goods or services to be provided for such
payments.</list-item>
<list-item>Administration of Territories, Northern Mariana
Islands Covenant grants (14–0412–0–1–808).</list-item>
<list-item>Advances to the Unemployment Trust Fund and Other
Funds (16–0327–0–1–600).</list-item>
<list-item>Black Lung Disability Trust Fund Refinancing
(16–0329–0–1–601).</list-item>
<list-item>Bonneville Power Administration Fund and borrowing
authority established pursuant to section 13 of Public Law 93–454 (1974), as
amended (89–4045–0–3–271).</list-item>
<list-item>Claims, Judgments, and Relief Acts
(20–1895–0–1–808).</list-item>
<list-item>Compact of Free Association
(14–0415–0–1–808).</list-item>
<list-item>Compensation of the President
(11–0209–01–1–802).</list-item>
<list-item>Comptroller of the Currency, Assessment Funds
(20–8413–0–8–373).</list-item>
<list-item>Continuing Fund, Southeastern Power Administration
(89–5653–0–2–271).</list-item>
<list-item>Continuing Fund, Southwestern Power Administration
(89–5649–0–2–271).</list-item>
<list-item>Dual Benefits Payments Account
(60–0111–0–1–601).</list-item>
<list-item>Emergency Fund, Western Area Power Administration
(89–5069–0–2–271).</list-item>
<list-item>Exchange Stabilization Fund
(20–4444–0–3–155).</list-item>
<list-item>Federal Deposit Insurance Corporation, Deposit
Insurance Fund (51–4596–4–4–373).</list-item>
<list-item>Federal Deposit Insurance Corporation, FSLIC
Resolution Fund (51–4065–0–3–373).</list-item>
<list-item>Federal Deposit Insurance Corporation, Noninterest
Bearing Transaction Account Guarantee (51–4458–0–3–373).</list-item>
<list-item>Federal Deposit Insurance Corporation, Senior
Unsecured Debt Guarantee (51–4457–0–3–373).</list-item>
<list-item>Federal Housing Finance Agency, Administrative
Expenses (95–5532–0–2–371).</list-item>
<list-item>Federal Payment to the District of Columbia Judicial
Retirement and Survivors Annuity Fund (20–1713–0–1–752).</list-item>
<list-item>Federal Payment to the District of Columbia Pension
Fund (20–1714–0–1–601).</list-item>
<list-item>Federal Payments to the Railroad Retirement Accounts
(60–0113–0–1–601).</list-item>
<list-item>Federal Reserve Bank Reimbursement Fund
(20–1884–0–1–803).</list-item>
<list-item>Financial Agent Services
(20–1802–0–1–803).</list-item>
<list-item>Foreign Military Sales Trust Fund
(11–8242–0–7–155).</list-item>
<list-item>Hazardous Waste Management, Conservation Reserve
Program (12–4336–0–3–999).</list-item>
<list-item>Host Nation Support Fund for Relocation
(97–8337–0–7–051).</list-item>
<list-item>Internal Revenue Collections for Puerto Rico
(20–5737–0–2–806).</list-item>
<list-item>Intragovernmental funds, including those from which
the outlays are derived primarily from resources paid in from other government
accounts, except to the extent such funds are augmented by direct
appropriations for the fiscal year during which an order is in
effect.</list-item>
<list-item>Medical Facilities Guarantee and Loan Fund
(75–9931–0–3–551).</list-item>
<list-item>National Credit Union Administration, Central
Liquidity Facility (25–4470–0–3–373).</list-item>
<list-item>National Credit Union Administration, Corporate
Credit Union Share Guarantee Program (25–4476–0–3–376).</list-item>
<list-item>National Credit Union Administration, Credit Union
Homeowners Affordability Relief Program (25–4473–0–3–371).</list-item>
<list-item>National Credit Union Administration, Credit Union
Share Insurance Fund (25–4468–0–3–373).</list-item>
<list-item>National Credit Union Administration, Credit Union
System Investment Program (25–4474–0–3–376).</list-item>
<list-item>National Credit Union Administration, Operating fund
(25–4056–0–3–373).</list-item>
<list-item>National Credit Union Administration, Share
Insurance Fund Corporate Debt Guarantee Program
(25–4469–0–3–376).</list-item>
<list-item>National Credit Union Administration, U.S. Central
Federal Credit Union Capital Program (25–4475–0–3–376).</list-item>
<list-item>Office of Thrift Supervision
(20–4108–0–3–373).</list-item>
<list-item>Panama Canal Commission Compensation Fund
(16–5155–0–2–602).</list-item>
<list-item>Payment of Vietnam and USS Pueblo prisoner-of-war
claims within the Salaries and Expenses, Foreign Claims Settlement account
(15–0100–0–1–153).</list-item>
<list-item>Payment to Civil Service Retirement and Disability
Fund (24–0200–0–1–805).</list-item>
<list-item>Payment to Department of Defense Medicare-Eligible
Retiree Health Care Fund (97–0850–0–1–054).</list-item>
<list-item>Payment to Judiciary Trust Funds
(10–0941–0–1–752).</list-item>
<list-item>Payment to Military Retirement Fund
(97–0040–0–1–054).</list-item>
<list-item>Payment to the Foreign Service Retirement and
Disability Fund (19–0540–0–1–153).</list-item>
<list-item>Payments to Copyright Owners
(03–5175–0–2–376).</list-item>
<list-item>Payments to Health Care Trust Funds
(75–0580–0–1–571).</list-item>
<list-item>Payment to Radiation Exposure Compensation Trust
Fund (15–0333–0–1–054).</list-item>
<list-item>Payments to Social Security Trust Funds
(28–0404–0–1–651).</list-item>
<list-item>Payments to the United States Territories, Fiscal
Assistance (14–0418–0–1–806).</list-item>
<list-item>Payments to trust funds from excise taxes or other
receipts properly creditable to such trust funds.</list-item>
<list-item>Payments to widows and heirs of deceased Members of
Congress (00–0215–0–1–801).</list-item>
<list-item>Postal Service Fund
(18–4020–0–3–372).</list-item>
<list-item>Radiation Exposure Compensation Trust Fund
(15–8116–0–1–054).</list-item>
<list-item>Reimbursement to Federal Reserve Banks
(20–0562–0–1–803).</list-item>
<list-item>Salaries of Article III judges.</list-item>
<list-item>Soldiers and Airmen’s Home, payment of claims
(84–8930–0–7–705).</list-item>
<list-item>Tennessee Valley Authority Fund, except nonpower
programs and activities (64–4110–0–3–999).</list-item>
<list-item>Tribal and Indian trust accounts within the
Department of the Interior which fund prior legal obligations of the Government
or which are established pursuant to Acts of Congress regarding Federal
management of tribal real property or other fiduciary responsibilities,
including but not limited to Tribal Special Fund (14–5265–0–2–452), Tribal
Trust Fund (14–8030–0–7–452), White Earth Settlement (14–2204–0–1–452), and
Indian Water Rights and Habitat Acquisition
(14–5505–0–2–303).</list-item>
<list-item>United Mine Workers of America 1992 Benefit Plan
(95–8260–0–7–551).</list-item>
<list-item>United Mine Workers of America 1993 Benefit Plan
(95–8535–0–7–551).</list-item>
<list-item>United Mine Workers of America Combined Benefit Fund
(95–8295–0–7–551).</list-item>
<list-item>United States Enrichment Corporation Fund
(95–4054–0–3–271).</list-item>
<list-item>Universal Service Fund
(27–5183–0–2–376).</list-item>
<list-item>Vaccine Injury Compensation
(75–0320–0–1–551).</list-item>
<list-item>Vaccine Injury Compensation Program Trust Fund
(20–8175–0–7–551).</list-item></list>
</subparagraph><subparagraph id="HA88CD8FBD74F451C9D7851747FE9A6C7" indent="up1"><enum>(B)</enum><text>The following Federal retirement and
disability accounts and activities shall be exempt from reduction under any
order issued under this part:</text>
<list level="subparagraph">
<list-item>Black Lung Disability Trust Fund
(20–8144–0–7–601).</list-item>
<list-item>Central Intelligence Agency Retirement and
Disability System Fund (56–3400–0–1–054).</list-item>
<list-item>Civil Service Retirement and Disability Fund
(24–8135–0–7–602).</list-item>
<list-item>Comptrollers general retirement system
(05–0107–0–1–801).</list-item>
<list-item>Contributions to U.S. Park Police annuity benefits,
Other Permanent Appropriations (14–9924–0–2–303).</list-item>
<list-item>Court of Appeals for Veterans Claims Retirement Fund
(95–8290–0–7–705).</list-item>
<list-item>Department of Defense Medicare-Eligible Retiree
Health Care Fund (97–5472–0–2–551).</list-item>
<list-item>District of Columbia Federal Pension Fund
(20–5511–0–2–601).</list-item>
<list-item>District of Columbia Judicial Retirement and
Survivors Annuity Fund (20–8212–0–7–602).</list-item>
<list-item>Energy Employees Occupational Illness Compensation
Fund (16–1523–0–1–053).</list-item>
<list-item>Foreign National Employees Separation Pay
(97–8165–0–7–051).</list-item>
<list-item>Foreign Service National Defined Contributions
Retirement Fund (19–5497–0–2–602).</list-item>
<list-item>Foreign Service National Separation Liability Trust
Fund (19–8340–0–7–602).</list-item>
<list-item>Foreign Service Retirement and Disability Fund
(19–8186–0–7–602).</list-item>
<list-item>Government Payment for Annuitants, Employees Health
Benefits (24–0206–0–1–551). </list-item>
<list-item>Government Payment for Annuitants, Employee Life
Insurance (24–0500–0–1–602).</list-item>
<list-item>Judicial Officers’ Retirement Fund
(10–8122–0–7–602).</list-item>
<list-item>Judicial Survivors’ Annuities Fund
(10–8110–0–7–602).</list-item>
<list-item>Military Retirement Fund
(97–8097–0–7–602).</list-item>
<list-item>National Railroad Retirement Investment Trust
(60–8118–0–7–601).</list-item>
<list-item>National Oceanic and Atmospheric Administration
retirement (13–1450–0–1–306).</list-item>
<list-item>Pensions for former Presidents
(47–0105–0–1–802).</list-item>
<list-item>Postal Service Retiree Health Benefits Fund
(24–5391–0–2–551).</list-item>
<list-item>Public Safety Officer Benefits
(15–0403–0–1–754).</list-item>
<list-item>Rail Industry Pension Fund
(60–8011–0–7–601).</list-item>
<list-item>Retired Pay, Coast Guard
(70–0602–0–1–403).</list-item>
<list-item>Retirement Pay and Medical Benefits for Commissioned
Officers, Public Health Service (75–0379–0–1–551).</list-item>
<list-item>Special Benefits for Disabled Coal Miners
(16–0169–0–1–601).</list-item>
<list-item>Special Benefits, Federal Employees’ Compensation
Act (16–1521–0–1–600).</list-item>
<list-item>Special Workers Compensation Expenses
(16–9971–0–7–601).</list-item>
<list-item>Tax Court Judges Survivors Annuity Fund
(23–8115–0–7–602).</list-item>
<list-item>United States Court of Federal Claims Judges’
Retirement Fund (10–8124–0–7–602).</list-item>
<list-item>United States Secret Service, DC Annuity
(70–0400–0–1–751).</list-item>
<list-item>Voluntary Separation Incentive Fund
(97–8335–0–7–051).</list-item></list>
</subparagraph></paragraph><paragraph id="H647B36644C7F46BCA8DBDFAD857285B8"><enum>(2)</enum><text>Prior legal
obligations of the Government in the following budget accounts and activities
shall be exempt from any order issued under this part:</text>
<list level="subparagraph">
<list-item>Biomass Energy Development
(20–0114–0–1–271).</list-item>
<list-item>Check Forgery Insurance Fund
(20–4109–0–3–803).</list-item>
<list-item>Credit liquidating accounts.</list-item>
<list-item>Credit reestimates.</list-item>
<list-item>Employees Life Insurance Fund (24–8424–0–8–602).
</list-item>
<list-item>Federal Aviation Insurance Revolving Fund
(69–4120–0–3–402).</list-item>
<list-item>Federal Crop Insurance Corporation Fund
(12–4085–0–3–351).</list-item>
<list-item>Federal Emergency Management Agency, National Flood
Insurance Fund (58–4236–0–3–453).</list-item>
<list-item>Federal Home Loan Mortgage Corporation (Freddie
Mac).</list-item>
<list-item>Federal National Mortgage Corporation (Fannie
Mae).</list-item>
<list-item>Geothermal resources development fund
(89–0206–0–1–271).</list-item>
<list-item>Low-Rent Public Housing—Loans and Other Expenses
(86–4098–0–3–604).</list-item>
<list-item>Maritime Administration, War Risk Insurance
Revolving Fund (69–4302–0–3–403).</list-item>
<list-item>Natural Resource Damage Assessment Fund
(14–1618–0–1–302).</list-item>
<list-item>Overseas Private Investment Corporation, Noncredit
Account (71–4184–0–3–151).</list-item>
<list-item>Pension Benefit Guaranty Corporation Fund
(16–4204–0–3–601).</list-item>
<list-item>San Joaquin Restoration Fund
(14–5537–0–2–301).</list-item>
<list-item>Servicemembers’ Group Life Insurance Fund
(36–4009–0–3–701).</list-item>
<list-item>Terrorism Insurance Program
(20–0123–0–1–376).</list-item></list>
</paragraph></subsection><subsection id="HE6474F82074046DB92629BADFB0DB6C9"><enum>(h)</enum><header>Low-income
programs</header><text>The following programs shall be exempt from reduction
under any order issued under this part:</text>
<list level="paragraph" list-type="none">
<list-item>Academic Competitiveness/Smart Grant Program
(91–0205–0–1–502).</list-item>
<list-item>Child Care Entitlement to States
(75–1550–0–1–609).</list-item>
<list-item>Child Enrollment Contingency Fund
(75–5551–0–2–551).</list-item>
<list-item>Child Nutrition Programs (with the exception of
special milk programs) (12–3539–0–1–605). </list-item>
<list-item>Children’s Health Insurance Fund (75–0515–0–1–551).
</list-item>
<list-item>Commodity Supplemental Food Program
(12–3507–0–1–605). </list-item>
<list-item>Contingency Fund (75–1522–0–1–609).
</list-item>
<list-item>Family Support Programs (75–1501–0–1–609).
</list-item>
<list-item>Federal Pell Grants under section 401 Title IV of
the Higher Education Act.</list-item>
<list-item>Grants to States for Medicaid
(75–0512–0–1–551).</list-item>
<list-item>Payments for Foster Care and Permanency
(75–1545–0–1–609).</list-item>
<list-item>Supplemental Nutrition Assistance Program
(12–3505–0–1–605).</list-item>
<list-item>Supplemental Security Income Program
(28–0406–0–1–609).</list-item>
<list-item>Temporary Assistance for Needy Families
(75–1552–0–1–609).</list-item></list>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HD8825D7FF714401CBAFBDB37833BB37E"><enum>(d)</enum><header>Economic
recovery programs</header><text>Section 255 of BBEDCA is amended by adding the
following after subsection (h):</text>
<quoted-block id="HF33F4F1FEF514545B70B893EE72E7D1B" style="OLC">
<subsection id="H5E9D9EC6202A492282C6223366AA1134"><enum>(i)</enum><header>Economic
recovery programs</header><text>The following programs shall be exempt from
reduction under any order issued under this part:</text>
<list level="paragraph">
<list-item>All programs enacted in, or increases in programs
provided by, the American Recovery and Reinvestment Act of
2009.</list-item>
<list-item>Exchange Stabilization Fund-Money Market Mutual Fund
Guaranty Facility (20–4274–0–3–376).</list-item>
<list-item>Financial Stabilization Reserve (20–0131–4–1–376).
</list-item>
<list-item>GSE Mortgage-Backed Securities Purchase Program
Account (20–0126–0–1–371).</list-item>
<list-item>GSE Preferred Stock Purchase Agreements
(20–0125–0–1–371).</list-item>
<list-item>Office of Financial Stability
(20–0128–0–1–376).</list-item>
<list-item>Special Inspector General for the Troubled Asset
Relief Program (20–0133–0–1–376).</list-item>
<list-item>Troubled Asset Relief Program Account
(20–0132–0–1–376).</list-item>
<list-item>Troubled Asset Relief Program Equity Purchase
Program (20–0134–0–1–376).</list-item>
<list-item>Troubled Asset Relief Program, Home Affordable
Modification Program
(20–0136–0–1–604).</list-item></list>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="idA9A9E05F15214A84972403915F46B867" section-type="subsequent-section"><enum>1309.</enum><header>Expiration</header><text display-inline="no-display-inline">This subtitle and the amendments made by
this subtitle shall expire September 30, 2014.</text>
</section></subtitle><subtitle id="idC2A3AA3321004C9DA0EE640329ECCA6A"><enum>D</enum><header>Reforming the
budget process</header>
<section id="id0639A90FED134DBAAA3117DD035AEC74" section-type="subsequent-section"><enum>1401.</enum><header>Short
title</header><text display-inline="no-display-inline">This subtitle may be
cited as the <quote><short-title>Biennial Budgeting and
Appropriations Act</short-title></quote>.</text>
</section><section id="IDFFA7628DA2DC40A58147362192BBFE38"><enum>1402.</enum><header>Revision of
timetable</header><text display-inline="no-display-inline">Section 300 of the
Congressional Budget Act of 1974 (2 U.S.C. 631) is amended to read as
follows:</text>
<quoted-block id="IDC2CC5BADB5334D05A3E3A3957AA7578F" style="traditional"><section id="IDE724A8A57C4D417B9B42FEB8A63EF87A"><enum>300.</enum><header>Timetable</header><subsection commented="no" display-inline="yes-display-inline" id="IDD3A5C2B821524802938328D8FF80D9AD"><enum>(a)</enum><header>In
General</header><text>Except as provided by subsection (b), the timetable with
respect to the congressional budget process for any Congress (beginning with
the One Hundred Eleventh Congress) is as follows:</text>
<table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.0" subformat="S6211" table-template-name="Generic: 2 text, 1st shorter" table-type="">
<ttitle>First Session</ttitle>
<tgroup cols="2" grid-typeface="1.1" no-carding="1" rowsep="0" thead-tbody-ldg-size="10.10.12" ttitle-size="10"><colspec coldef="txt" colname="column1" colwidth="298.50pt" min-data-value="125"></colspec><colspec coldef="txt-no-ldr" colname="column2" colwidth="384.00pt" min-data-value="175"></colspec>
<tbody>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr">On or before:</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">Action to be completed:</entry>
</row>
<row><entry colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">First Monday in February</entry><entry colname="column2" leader-modify="clr-ldr">President submits budget
recommendations.</entry>
</row>
<row><entry align="left" colname="column1" leader-modify="force-ldr" stub-definition="txt-ldr" stub-hierarchy="1">February
15</entry><entry align="left" colname="column2" leader-modify="clr-ldr">Congressional Budget Office submits report to Budget
Committees.</entry>
</row>
<row><entry align="left" colname="column1" leader-modify="force-ldr" stub-definition="txt-ldr" stub-hierarchy="1">Not
later than 6 weeks after budget submission</entry><entry align="left" colname="column2" leader-modify="clr-ldr">Committees submit views and estimates
to Budget Committees.</entry>
</row>
<row><entry align="left" colname="column1" leader-modify="force-ldr" stub-definition="txt-ldr" stub-hierarchy="1">April
1</entry><entry align="left" colname="column2" leader-modify="clr-ldr">Budget
Committees report concurrent resolution on the biennial budget.</entry>
</row>
<row><entry align="left" colname="column1" leader-modify="force-ldr" stub-definition="txt-ldr" stub-hierarchy="1">May
15</entry><entry align="left" colname="column2" leader-modify="clr-ldr">Congress completes action on concurrent resolution on
the biennial budget.</entry>
</row>
<row><entry align="left" colname="column1" leader-modify="force-ldr" stub-definition="txt-ldr" stub-hierarchy="1">May
15</entry><entry align="left" colname="column2" leader-modify="clr-ldr">Biennial appropriation bills may be considered in the
House.</entry>
</row>
<row><entry align="left" colname="column1" leader-modify="force-ldr" stub-definition="txt-ldr" stub-hierarchy="1">June
10</entry><entry align="left" colname="column2" leader-modify="clr-ldr">House
Appropriations Committee reports last biennial appropriation bill.</entry>
</row>
<row><entry align="left" colname="column1" leader-modify="force-ldr" stub-definition="txt-ldr" stub-hierarchy="1">June
30</entry><entry align="left" colname="column2" leader-modify="clr-ldr">House
completes action on biennial appropriation bills.</entry>
</row>
<row><entry align="left" colname="column1" leader-modify="force-ldr" stub-definition="txt-ldr" stub-hierarchy="1">August
1</entry><entry align="left" colname="column2" leader-modify="clr-ldr">Congress
completes action on reconciliation legislation.</entry>
</row>
<row><entry align="left" colname="column1" leader-modify="force-ldr" stub-definition="txt-ldr" stub-hierarchy="1">October
1</entry><entry align="left" colname="column2" leader-modify="clr-ldr">Biennium
begins.</entry>
</row>
</tbody>
</tgroup>
</table>
<table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.0" subformat="S6211" table-template-name="Generic: 2 text, 1st shorter" table-type="">
<ttitle>Second Session</ttitle>
<tgroup cols="2" grid-typeface="1.1" no-carding="1" rowsep="0" thead-tbody-ldg-size="10.10.12" ttitle-size="10"><colspec coldef="txt" colname="column1" colwidth="298.50pt" min-data-value="125"></colspec><colspec coldef="txt-no-ldr" colname="column2" colwidth="385.50pt" min-data-value="175"></colspec>
<tbody>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr">On or before:</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">Action to be completed:</entry>
</row>
<row><entry align="left" colname="column1" leader-modify="force-ldr" stub-definition="txt-ldr" stub-hierarchy="1">February
15</entry><entry align="left" colname="column2" leader-modify="clr-ldr">President submits budget review.</entry>
</row>
<row><entry align="left" colname="column1" leader-modify="force-ldr" stub-definition="txt-ldr" stub-hierarchy="1">Not
later than 6 weeks after President submits budget review</entry><entry align="left" colname="column2" leader-modify="clr-ldr">Congressional Budget
Office submits report to Budget Committees.</entry>
</row>
<row><entry align="left" colname="column1" leader-modify="force-ldr" stub-definition="txt-ldr" stub-hierarchy="1">The last
day of the session</entry><entry align="left" colname="column2" leader-modify="clr-ldr">Congress completes action on bills and resolutions
authorizing new budget authority for the succeeding biennium.</entry>
</row>
</tbody>
</tgroup>
</table>
</subsection><subsection id="ID196A1F38A51B4ACF8BB9B0AEA71C034A"><enum>(b)</enum><header>Special
Rule</header><text>In the case of any first session of Congress that begins in
any year immediately following a leap year and during which the term of a
President (except a President who succeeds himself or herself) begins, the
following dates shall supersede those set forth in subsection (a):</text>
<table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.0" subformat="S6211" table-template-name="Generic: 2 text, 1st shorter" table-type="">
<ttitle>First Session</ttitle>
<tgroup cols="2" grid-typeface="1.1" no-carding="1" rowsep="0" thead-tbody-ldg-size="10.10.12" ttitle-size="10"><colspec coldef="txt" colname="column1" colwidth="304.50pt" min-data-value="125"></colspec><colspec coldef="txt-no-ldr" colname="column2" colwidth="384.75pt" min-data-value="175"></colspec>
<tbody>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr">On or before:</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">Action to be completed:</entry>
</row>
<row><entry align="left" colname="column1" leader-modify="force-ldr" stub-definition="txt-ldr" stub-hierarchy="1">First
Monday in April</entry><entry align="left" colname="column2" leader-modify="clr-ldr">President submits budget recommendations.</entry>
</row>
<row><entry align="left" colname="column1" leader-modify="force-ldr" stub-definition="txt-ldr" stub-hierarchy="1">April
20</entry><entry align="left" colname="column2" leader-modify="clr-ldr">Committees submit views and estimates to Budget
Committees.</entry>
</row>
<row><entry align="left" colname="column1" leader-modify="force-ldr" stub-definition="txt-ldr" stub-hierarchy="1">May
15</entry><entry align="left" colname="column2" leader-modify="clr-ldr">Budget
Committees report concurrent resolution on the biennial budget.</entry>
</row>
<row><entry align="left" colname="column1" leader-modify="force-ldr" stub-definition="txt-ldr" stub-hierarchy="1">June
1</entry><entry align="left" colname="column2" leader-modify="clr-ldr">Congress
completes action on concurrent resolution on the biennial budget.</entry>
</row>
<row><entry align="left" colname="column1" leader-modify="force-ldr" stub-definition="txt-ldr" stub-hierarchy="1">July
1</entry><entry align="left" colname="column2" leader-modify="clr-ldr">Biennial
appropriation bills may be considered in the House.</entry>
</row>
<row><entry align="left" colname="column1" leader-modify="force-ldr" stub-definition="txt-ldr" stub-hierarchy="1">July
20</entry><entry align="left" colname="column2" leader-modify="clr-ldr">House
completes action on biennial appropriation bills.</entry>
</row>
<row><entry align="left" colname="column1" leader-modify="force-ldr" stub-definition="txt-ldr" stub-hierarchy="1">August
1</entry><entry align="left" colname="column2" leader-modify="clr-ldr">Congress
completes action on reconciliation legislation.</entry>
</row>
<row><entry align="left" colname="column1" leader-modify="force-ldr" stub-definition="txt-ldr" stub-hierarchy="1">October
1</entry><entry align="left" colname="column2" leader-modify="clr-ldr">Biennium
begins.</entry>
</row>
</tbody>
</tgroup></table>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="IDE0D9A2FA1AD046DA85DD2038885D3C70"><enum>1403.</enum><header>Amendments to
the Congressional Budget and Impoundment Control Act of 1974</header>
<subsection id="ID4B74E91CA20B45E8868A357E58C064CB"><enum>(a)</enum><header>Declaration of
Purpose</header><text>Section 2(2) of the Congressional Budget and Impoundment
Control Act of 1974 (2 U.S.C. 621(2)) is amended by striking <quote>each
year</quote> and inserting <quote>biennially</quote>.</text>
</subsection><subsection id="ID0DBD14227D344FD2862C89A6182AB8C9"><enum>(b)</enum><header>Definitions</header>
<paragraph id="ID1618E415A4A04FDF8B089C8D36A70237"><enum>(1)</enum><header>Budget
resolution</header><text>Section 3(4) of such Act (2 U.S.C. 622(4)) is amended
by striking <quote>fiscal year</quote> each place it appears and inserting
<quote>biennium</quote>.</text>
</paragraph><paragraph id="ID6768F517974C4A85A633A7B7607254E9"><enum>(2)</enum><header>Biennium</header><text>Section
3 of such Act (2 U.S.C. 622) is further amended by adding at the end the
following new paragraph:</text>
<quoted-block id="ID6640CE1454024ADA8E9574EDD4F92E18" style="OLC">
<paragraph id="ID51994361C5E04F49B2AA43BA97726209"><enum>(11)</enum><text>The term
<term>biennium</term> means the period of 2 consecutive fiscal years beginning
on October 1 of any odd-numbered
year.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="IDF295CE67B8614A6693CA74B81931298A"><enum>(c)</enum><header>Biennial
Concurrent Resolution on the Budget</header>
<paragraph id="ID7D89078D2EC641E6B3383BF238F424C7"><enum>(1)</enum><header>Section
heading</header><text>The section heading of section 301 of such Act is amended
by striking <quote><header-in-text>annual</header-in-text></quote> and
inserting <quote><header-in-text>biennial</header-in-text></quote>.</text>
</paragraph><paragraph id="ID216FFF38E4A0497586180201BB5A883B"><enum>(2)</enum><header>Contents of
resolution</header><text>Section 301(a) of such Act (2 U.S.C. 632(a)) is
amended—</text>
<subparagraph id="IDA228D7B362EB4A54ACEA1D8DACCC578C"><enum>(A)</enum><text>in the matter
preceding paragraph (1) by—</text>
<clause id="IDAAF7515C1615425D90C16913FD3127BF"><enum>(i)</enum><text>striking
<quote>April 15 of each year</quote> and inserting <quote>May 15 of each
odd-numbered year</quote>;</text>
</clause><clause id="ID989112AB4D7542D59B0AA22298FD8687"><enum>(ii)</enum><text>striking
<quote>the fiscal year beginning on October 1 of such year</quote> the first
place it appears and inserting <quote>the biennium beginning on October 1 of
such year</quote>; and</text>
</clause><clause id="ID2DAD4BA23F10409CB34FEB86D52D01C4"><enum>(iii)</enum><text>striking
<quote>the fiscal year beginning on October 1 of such year</quote> the second
place it appears and inserting <quote>each fiscal year in such
period</quote>;</text>
</clause></subparagraph><subparagraph id="IDE13F139FAC0340F1B4513D6DBAEB73CA"><enum>(B)</enum><text>in paragraph (6),
by striking <quote>for the fiscal year</quote> and inserting <quote>for each
fiscal year in the biennium</quote>; and</text>
</subparagraph><subparagraph id="ID02052FB851B54FBDBA7FCDAF410EFD6D"><enum>(C)</enum><text>in paragraph (7),
by striking <quote>for the fiscal year</quote> and inserting <quote>for each
fiscal year in the biennium</quote>.</text>
</subparagraph></paragraph><paragraph id="ID0A0AD6E78D084F86B96BB7D93DB7BF92"><enum>(3)</enum><header>Additional
matters</header><text>Section 301(b)(3) of such Act (2 U.S.C. 632(b)) is
amended by striking <quote>for such fiscal year</quote> and inserting
<quote>for either fiscal year in such biennium</quote>.</text>
</paragraph><paragraph id="ID5DB2C73345974E18A36A9B522D826F02"><enum>(4)</enum><header>Views of other
committees</header><text>Section 301(d) of such Act (2 U.S.C. 632(d)) is
amended by inserting <quote>(or, if applicable, as provided by section
300(b))</quote> after <quote>United States Code</quote>.</text>
</paragraph><paragraph id="ID332C33F0547D4020AC67477FA8EEDC5D"><enum>(5)</enum><header>Hearings</header><text>Section
301(e)(1) of such Act (2 U.S.C. 632(e)) is amended by—</text>
<subparagraph id="ID03E886D034294594AB250CB03574BEDC"><enum>(A)</enum><text>striking
<quote>fiscal year</quote> and inserting <quote>biennium</quote>; and</text>
</subparagraph><subparagraph id="ID3F3CB48D836540EDA523074F33D2D943"><enum>(B)</enum><text>inserting after
the second sentence the following: <quote>On or before April 1 of each
odd-numbered year (or, if applicable, as provided by section 300(b)), the
Committee on the Budget of each House shall report to its House the concurrent
resolution on the budget referred to in subsection (a) for the biennium
beginning on October 1 of that year.</quote>.</text>
</subparagraph></paragraph><paragraph id="ID39F01E5EA314448D932EA6FD14B2B983"><enum>(6)</enum><header>Goals for
reducing unemployment</header><text>Section 301(f) of such Act (2 U.S.C.
632(f)) is amended by striking <quote>fiscal year</quote> each place it appears
and inserting <quote>biennium</quote>.</text>
</paragraph><paragraph id="ID3A89BBD7082643609AE8EF3AA1BFDF4C"><enum>(7)</enum><header>Economic
assumptions</header><text>Section 301(g)(1) of such Act (2 U.S.C. 632(g)(1)) is
amended by striking <quote>for a fiscal year</quote> and inserting <quote>for a
biennium</quote>.</text>
</paragraph><paragraph id="IDC3217B8263CF442DBFF01681ED4A02B3"><enum>(8)</enum><header>Table of
contents</header><text>The item relating to section 301 in the table of
contents set forth in section 1(b) of such Act is amended by striking
<quote>Annual</quote> and inserting <quote>Biennial</quote>.</text>
</paragraph></subsection><subsection id="IDA33A6A5A22AA48088E0563666FAEEAD1"><enum>(d)</enum><header>Committee
Allocations</header><text>Section 302 of such Act (2 U.S.C. 633) is
amended—</text>
<paragraph id="IDD85C8DF0B7D141C79ADB64550A8D335C"><enum>(1)</enum><text>in subsection
(a)—</text>
<subparagraph id="IDD06006CDBD5F4A63857D9F89F7267070"><enum>(A)</enum><text>in paragraph (1),
by—</text>
<clause id="ID7648D5001D7343448392E006EEDD8F12"><enum>(i)</enum><text>striking
<quote>for the first fiscal year of the resolution,</quote> and inserting
<quote>for each fiscal year in the biennium,</quote>;</text>
</clause><clause id="IDBE965599C04C4DB7A28DE7A8056307B5"><enum>(ii)</enum><text>striking
<quote>for that period of fiscal years</quote> and inserting <quote>for all
fiscal years covered by the resolution</quote>; and</text>
</clause><clause id="ID9DF71C57889C47D2BB11DDB19D164EA9"><enum>(iii)</enum><text>striking
<quote>for the fiscal year of that resolution</quote> and inserting <quote>for
each fiscal year in the biennium</quote>; and</text>
</clause></subparagraph><subparagraph id="IDE50ED15DD2864752904B2D3D2A305C36"><enum>(B)</enum><text>in paragraph (5),
by striking <quote>April 15</quote> and inserting <quote>May 15 or June 1
(under section 300(b))</quote>;</text>
</subparagraph></paragraph><paragraph id="ID62437995AA104575B43A5931F691CF64"><enum>(2)</enum><text>in subsection
(b), by striking <quote>budget year</quote> and inserting
<quote>biennium</quote>;</text>
</paragraph><paragraph id="ID899A13AE7DBB4294A95B2DC509DCA3D2"><enum>(3)</enum><text>in subsection (c)
by striking <quote>for a fiscal year</quote> each place it appears and
inserting <quote>for each fiscal year in the biennium</quote>;</text>
</paragraph><paragraph id="ID0FBA87E966E144C88D1D9D90482F0360"><enum>(4)</enum><text>in subsection
(f)(1), by striking <quote>for a fiscal year</quote> and inserting <quote>for a
biennium</quote>;</text>
</paragraph><paragraph id="IDD5944CA39ACA45809EA8AC62C95F8623"><enum>(5)</enum><text>in subsection
(f)(1), by striking <quote>the first fiscal year</quote> and inserting
<quote>each fiscal year of the biennium</quote>;</text>
</paragraph><paragraph id="ID6380A3A9CF944E248080FA662BFAF763"><enum>(6)</enum><text>in subsection
(f)(2)(A), by—</text>
<subparagraph id="IDEC88A50B65C44FB5BD80B80D3137BBC7"><enum>(A)</enum><text>striking
<quote>the first fiscal year</quote> and inserting <quote>each fiscal year of
the biennium</quote>; and</text>
</subparagraph><subparagraph id="ID26E065DF473D4F149475B65FA03628BB"><enum>(B)</enum><text>striking
<quote>the total of fiscal years</quote> and inserting <quote>the total of all
fiscal years covered by the resolution</quote>; and</text>
</subparagraph></paragraph><paragraph id="ID2CBD12C978B74FA69045251CDDA2318F"><enum>(7)</enum><text>in subsection
(g)(1)(A), by striking <quote>April</quote> and inserting
<quote>May</quote>.</text>
</paragraph></subsection><subsection id="ID36E8F4C8A1DD456D9A507406D1349CD9"><enum>(e)</enum><header>Section
<enum-in-header>303</enum-in-header> Point of Order</header>
<paragraph id="IDB1DED340B0574D9B9ED3AE21DB233F83"><enum>(1)</enum><header>In
general</header><text>Section 303(a) of such Act (2 U.S.C. 634(a)) is amended
by—</text>
<subparagraph id="ID0EC4351F06874685BA5C9AFF9C248106"><enum>(A)</enum><text>striking
<quote>the first fiscal year</quote> and inserting <quote>each fiscal year of
the biennium</quote>; and</text>
</subparagraph><subparagraph id="IDABC4CA8408414594B462249BECF01EF1"><enum>(B)</enum><text>striking
<quote>that fiscal year</quote> each place it appears and inserting <quote>that
biennium</quote>.</text>
</subparagraph></paragraph><paragraph id="ID1F622431AD254B4CB365BA74C0D9070D"><enum>(2)</enum><header>Exceptions in
the house</header><text>Section 303(b)(1) of such Act (2 U.S.C. 634(b)) is
amended—</text>
<subparagraph id="ID80574D35E05C4333B6D292D88D5E5F68"><enum>(A)</enum><text>in subparagraph
(A), by striking <quote>the budget year</quote> and inserting <quote>the
biennium</quote>; and</text>
</subparagraph><subparagraph id="IDB44C75D145624822A1090F6A637EE51E"><enum>(B)</enum><text>in subparagraph
(B), by striking <quote>the fiscal year</quote> and inserting <quote>the
biennium</quote>.</text>
</subparagraph></paragraph><paragraph id="ID80D2409FC4E744AFAE27AAC9B4860785"><enum>(3)</enum><header>Application to
the senate</header><text>Section 303(c)(1) of such Act (2 U.S.C. 634(c)) is
amended by—</text>
<subparagraph id="IDE13EE34C043E4355AFE40822D30D9FB3"><enum>(A)</enum><text>striking
<quote>fiscal year</quote> and inserting <quote>biennium</quote>; and</text>
</subparagraph><subparagraph id="IDB86C8B5BFACA4257A9462A8AF8C6CD84"><enum>(B)</enum><text>striking
<quote>that year</quote> and inserting <quote>each fiscal year of that
biennium</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="ID57E8DAE8A0E2410796A306F73906E48F"><enum>(f)</enum><header>Permissible
Revisions of Concurrent Resolutions on the Budget</header><text>Section 304(a)
of such Act (2 U.S.C. 635) is amended—</text>
<paragraph id="ID64C12E09730B447F8B947C1C025FF5F1"><enum>(1)</enum><text>by striking
<quote>fiscal year</quote> the first two places it appears and inserting
<quote>biennium</quote>; and</text>
</paragraph><paragraph id="ID65DD5A4CBB9144E3AFF9048A8F3F072F"><enum>(2)</enum><text>by striking
<quote>for such fiscal year</quote> and inserting <quote>for such
biennium</quote>.</text>
</paragraph></subsection><subsection id="ID9B1A3036502041208764919A64C32044"><enum>(g)</enum><header>Procedures for
Consideration of Budget Resolutions</header><text>Section 305 of such Act (2
U.S.C. 636(3)) is amended—</text>
<paragraph id="ID7419217BC326421AA9E90310E7C9FCF5"><enum>(1)</enum><text>in subsection
(a)(3), by striking <quote>fiscal year</quote> and inserting
<quote>biennium</quote>; and</text>
</paragraph><paragraph id="ID96D94157E93D4980B0965BD1A704849D"><enum>(2)</enum><text>in subsection
(b)(3), by striking <quote>fiscal year</quote> and inserting
<quote>biennium</quote>.</text>
</paragraph></subsection><subsection id="ID69DB6BEBAB2D45C3AAC20AA26EB2D145"><enum>(h)</enum><header>Completion of
House Action on Appropriation Bills</header><text>Section 307 of such Act (2
U.S.C. 638) is amended—</text>
<paragraph id="ID98BB1E790B714E89A7E5197B8ACF4719"><enum>(1)</enum><text>by striking
<quote>each year</quote> and inserting <quote>each odd-numbered
year</quote>;</text>
</paragraph><paragraph id="ID2DB1950548014C339548CD510C60478C"><enum>(2)</enum><text>by striking
<quote>annual</quote> and inserting <quote>biennial</quote>;</text>
</paragraph><paragraph id="ID594537EB12F447FF99927D6E4C6D7258"><enum>(3)</enum><text>by striking
<quote>fiscal year</quote> and inserting <quote>biennium</quote>; and</text>
</paragraph><paragraph id="ID424BB9923E08463D91AF6CB1DD5951FC"><enum>(4)</enum><text>by striking
<quote>that year</quote> and inserting <quote>each odd-numbered
year</quote>.</text>
</paragraph></subsection><subsection id="ID41716878A2E147A1BE4E8943BCDBACC6"><enum>(i)</enum><header>Completion of
Action on Regular Appropriation Bills</header><text>Section 309 of such Act (2
U.S.C. 640) is amended—</text>
<paragraph id="ID73EBCCB1A4044778A331FFD0492DA37E"><enum>(1)</enum><text>by inserting
<quote>of any odd-numbered calendar year</quote> after
<quote>July</quote>;</text>
</paragraph><paragraph id="ID9EA172F4951846B0886BBFFDF8755B38"><enum>(2)</enum><text>by striking
<quote>annual</quote> and inserting <quote>biennial</quote>; and</text>
</paragraph><paragraph id="ID0F5F6015EE294FABBB30738BB1BA741F"><enum>(3)</enum><text>by striking
<quote>fiscal year</quote> and inserting <quote>biennium</quote>.</text>
</paragraph></subsection><subsection id="ID8EEB7EB59908454E81794696E2FC41F2"><enum>(j)</enum><header>Reconciliation
Process</header><text>Section 310(a) of such Act (2 U.S.C. 641(a)) is
amended—</text>
<paragraph id="IDBABE9DDACB4C4D8EBB17EE221BB50D17"><enum>(1)</enum><text>in the matter
preceding paragraph (1), by striking <quote>any fiscal year</quote> and
inserting <quote>any biennium</quote>; and</text>
</paragraph><paragraph id="IDFC21F832C86A4E2DB2E8F786971F7748"><enum>(2)</enum><text>in paragraph (1)
by striking <quote>such fiscal year</quote> each place it appears and inserting
<quote>any fiscal year covered by such resolution</quote>.</text>
</paragraph></subsection><subsection id="ID25AD16712E6F45DA852A3006CD833E09"><enum>(k)</enum><header>Section
<enum-in-header>311</enum-in-header> Point of Order</header>
<paragraph id="IDED3D0E71F6DE4D71A3B6FBB4A0388930"><enum>(1)</enum><header>In the
house</header><text>Section 311(a)(1) of such Act (2 U.S.C. 642(a)) is
amended—</text>
<subparagraph id="ID9DAB059CF03141468636B77D6DB0E22C"><enum>(A)</enum><text>by striking
<quote>for a fiscal year</quote> and inserting <quote>for a
biennium</quote>;</text>
</subparagraph><subparagraph id="ID596C4C5FCE9C4FD88883540FAE821574"><enum>(B)</enum><text>by striking
<quote>the first fiscal year</quote> each place it appears and inserting
<quote>either fiscal year of the biennium</quote>; and</text>
</subparagraph><subparagraph id="ID618F3F732BE64031B8EA2B01F85BAB2C"><enum>(C)</enum><text>by striking
<quote>that first fiscal year</quote> and inserting <quote>each fiscal year in
the biennium</quote>.</text>
</subparagraph></paragraph><paragraph id="ID2CDE8BD3AA764859A34C397C0D9977E0"><enum>(2)</enum><header>In the
senate</header><text>Section 311(a)(2) of such Act is amended—</text>
<subparagraph id="ID8620DDB47C7D47B5B42CB84E9E753831"><enum>(A)</enum><text>in subparagraph
(A), by striking <quote>for the first fiscal year</quote> and inserting
<quote>for either fiscal year of the biennium</quote>; and</text>
</subparagraph><subparagraph id="IDED913991BEFA49FA9EADDA2FC1BBD4CE"><enum>(B)</enum><text>in subparagraph
(B)—</text>
<clause id="ID62E5EE66C4D94BB7A97072E9D963344D"><enum>(i)</enum><text>by
striking <quote>that first fiscal year</quote> the first place it appears and
inserting <quote>each fiscal year in the biennium</quote>; and</text>
</clause><clause id="ID0A21D21681DE494684761D9742C3AE6B"><enum>(ii)</enum><text>by
striking <quote>that first fiscal year and the ensuing fiscal years</quote> and
inserting <quote>all fiscal years</quote>.</text>
</clause></subparagraph></paragraph><paragraph id="IDFC7D0220A2BA491B84A05261AC455CAA"><enum>(3)</enum><header>Social security
levels</header><text>Section 311(a)(3) of such Act is amended by—</text>
<subparagraph id="ID02EBEA0334A7424B95E2FC553F930F35"><enum>(A)</enum><text>striking
<quote>for the first fiscal year</quote> and inserting <quote>each fiscal year
in the biennium</quote>; and</text>
</subparagraph><subparagraph id="ID9AA7A9F48ED64B07A1E3C8824A7933DB"><enum>(B)</enum><text>striking
<quote>that fiscal year and the ensuing fiscal years</quote> and inserting
<quote>all fiscal years</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="ID55D374368D8A43BB812C9AAF2522B817"><enum>(l)</enum><header>MDA Point of
Order</header><text>Section 312(c) of the Congressional Budget Act of 1974 (2
U.S.C. 643) is amended—</text>
<paragraph id="ID8599BD82B0AD4C739A40282DF0CDC99C"><enum>(1)</enum><text>by striking
<quote>for a fiscal year</quote> and inserting <quote>for a
biennium</quote>;</text>
</paragraph><paragraph id="IDB6D5D4C5693A4618A1F7F3016711764C"><enum>(2)</enum><text>in paragraph (1),
by striking <quote>the first fiscal year</quote> and inserting <quote>either
fiscal year in the biennium</quote>;</text>
</paragraph><paragraph id="ID0A8C1949845449AB860D9588358FBD9F"><enum>(3)</enum><text>in paragraph (2),
by striking <quote>that fiscal year</quote> and inserting <quote>either fiscal
year in the biennium</quote>; and</text>
</paragraph><paragraph id="ID4C1C1846897E4D2B9859E56A3EB4369B"><enum>(4)</enum><text>in the matter
following paragraph (2), by striking <quote>that fiscal year</quote> and
inserting <quote>the applicable fiscal year</quote>.</text>
</paragraph></subsection></section><section id="ID815EEA695B274292AE9525E532F12E1C"><enum>1404.</enum><header>Amendments to
title <enum-in-header>31</enum-in-header>, United States Code</header>
<subsection id="IDA27A18B9F1A64E2ABB401A58E745A21E"><enum>(a)</enum><header>Definition</header><text>Section
1101 of title 31, United States Code, is amended by adding at the end thereof
the following new paragraph:</text>
<quoted-block id="IDD8710B49065A40B9BA7CAC8478CB8826" style="OLC">
<paragraph id="IDABE12CF1E36F4A8DA99D6B711128E26A"><enum>(3)</enum><text><term>biennium</term>
has the meaning given to such term in paragraph (11) of section 3 of the
Congressional Budget and Impoundment Control Act of 1974 (2 U.S.C.
622(11)).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDA2C46B055926450DB7DAE01624836C5F"><enum>(b)</enum><header>Budget Contents
and Submission to the Congress</header>
<paragraph id="ID1BC9EB8FF0E74C51B8CBF7756A86D9D6"><enum>(1)</enum><header>Schedule</header><text>The
matter preceding paragraph (1) in section 1105(a) of title 31, United States
Code, is amended to read as follows:</text>
<quoted-block id="IDB5473A5D0C3046B282C7BDBD385F9F48" style="OLC">
<subsection id="IDAD2267DDFE484787BDF054A261018A73"><enum>(a)</enum><text>On or before the
first Monday in February of each odd-numbered year (or, if applicable, as
provided by section 300(b) of the Congressional Budget Act of 1974), beginning
with the One Hundred Twelfth Congress, the President shall transmit to the
Congress, the budget for the biennium beginning on October 1 of such calendar
year. The budget of the United States Government transmitted under this
subsection shall include a budget message and summary and supporting
information. The President shall include in each budget the
following:</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDFBF8A5514B99493D93882EC39C89372C"><enum>(2)</enum><header>Expenditures</header><text>Section
1105(a)(5) of title 31, United States Code, is amended by striking <quote>the
fiscal year for which the budget is submitted and the 4 fiscal years after that
year</quote> and inserting <quote>each fiscal year in the biennium for which
the budget is submitted and in the succeeding 4 fiscal years</quote>.</text>
</paragraph><paragraph id="ID2B42B31E513A4C8DA97407FF4FC35176"><enum>(3)</enum><header>Receipts</header><text>Section
1105(a)(6) of title 31, United States Code, is amended by striking <quote>the
fiscal year for which the budget is submitted and the 4 fiscal years after that
year</quote> and inserting <quote>each fiscal year in the biennium for which
the budget is submitted and in the succeeding 4 years</quote>.</text>
</paragraph><paragraph id="ID7EB87180FB894637B14B954B218ED512"><enum>(4)</enum><header>Balance
statements</header><text>Section 1105(a)(9)(C) of title 31, United States Code,
is amended by striking <quote>the fiscal year</quote> and inserting <quote>each
fiscal year in the biennium</quote>.</text>
</paragraph><paragraph id="ID7E234C61550E4B34A291539A242A6C1A"><enum>(5)</enum><header>Functions and
activities</header><text>Section 1105(a)(12) of title 31, United States Code,
is amended in subparagraph (A), by striking <quote>the fiscal year</quote> and
inserting <quote>each fiscal year in the biennium</quote>.</text>
</paragraph><paragraph id="ID6FCC4D6F4583402EBD84FF328ADA1AEA"><enum>(6)</enum><header>Allowances</header><text>Section
1105(a)(13) of title 31, United States Code, is amended by striking <quote>the
fiscal year</quote> and inserting <quote>each fiscal year in the
biennium</quote>.</text>
</paragraph><paragraph id="ID629A862E9B014AE5AF49751FA1205E32"><enum>(7)</enum><header>Allowances for
uncontrolled expenditures</header><text>Section 1105(a)(14) of title 31, United
States Code, is amended by striking <quote>that year</quote> and inserting
<quote>each fiscal year in the biennium for which the budget is
submitted</quote>.</text>
</paragraph><paragraph id="IDDFB0B86CCF0F44F5BDBB1A8327E6E7A2"><enum>(8)</enum><header>Tax
expenditures</header><text>Section 1105(a)(16) of title 31, United States Code,
is amended by striking <quote>the fiscal year</quote> and inserting <quote>each
fiscal year in the biennium</quote>.</text>
</paragraph><paragraph id="ID1ADE1C4B1CED477E9E718D3F211C9282"><enum>(9)</enum><header>Future
years</header><text>Section 1105(a)(17) of title 31, United States Code, is
amended—</text>
<subparagraph id="IDBE72CAE9FDDF40F0A34BE44CB4732FC7"><enum>(A)</enum><text>by striking
<quote>the fiscal year following the fiscal year</quote> and inserting
<quote>each fiscal year in the biennium following the biennium</quote>;</text>
</subparagraph><subparagraph id="ID21F8884DF5F64AF69E4CEA4824F7E376"><enum>(B)</enum><text>by striking
<quote>that following fiscal year</quote> and inserting <quote>each such fiscal
year</quote>; and</text>
</subparagraph><subparagraph id="IDDB7C97D6EA844131BF08301F1C522ECF"><enum>(C)</enum><text>by striking
<quote>fiscal year before the fiscal year</quote> and inserting <quote>biennium
before the biennium</quote>.</text>
</subparagraph></paragraph><paragraph id="ID225D13D0FEC5481FA9656D701BA1781A"><enum>(10)</enum><header>Prior year
outlays</header><text>Section 1105(a)(18) of title 31, United States Code, is
amended—</text>
<subparagraph id="ID740CC1A796CA42E3851CAE66AB7F18E2"><enum>(A)</enum><text>by striking
<quote>the prior fiscal year</quote> and inserting <quote>each of the 2 most
recently completed fiscal years,</quote>;</text>
</subparagraph><subparagraph id="ID0759CEAF6B4B43DA988BB807C11C129B"><enum>(B)</enum><text>by striking
<quote>for that year</quote> and inserting <quote>with respect to those fiscal
years</quote>; and</text>
</subparagraph><subparagraph id="IDC71884D986D844C4BCE7115061CFB0B9"><enum>(C)</enum><text>by striking
<quote>in that year</quote> and inserting <quote>in those fiscal
years</quote>.</text>
</subparagraph></paragraph><paragraph id="IDFFD671CA396B4804878572B920C71A29"><enum>(11)</enum><header>Prior year
receipts</header><text>Section 1105(a)(19) of title 31, United States Code, is
amended—</text>
<subparagraph id="ID0C0D81D7A3844C6FA0D0420B6F8E2E58"><enum>(A)</enum><text>by striking
<quote>the prior fiscal year</quote> and inserting <quote>each of the 2 most
recently completed fiscal years</quote>;</text>
</subparagraph><subparagraph id="IDB85C3C49B09145A29F96A4F40864F4E1"><enum>(B)</enum><text>by striking
<quote>for that year</quote> and inserting <quote>with respect to those fiscal
years</quote>; and</text>
</subparagraph><subparagraph id="ID6CEB1BDEB7754023BB0A4EE8FFAD4364"><enum>(C)</enum><text>by striking
<quote>in that year</quote> each place it appears and inserting <quote>in those
fiscal years</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="IDB3F34471E76B445FA6C9558020FFDCF1"><enum>(c)</enum><header>Estimated
Expenditures of Legislative and Judicial Branches</header><text>Section 1105(b)
of title 31, United States Code, is amended by striking <quote>each
year</quote> and inserting <quote>each even-numbered year</quote>.</text>
</subsection><subsection id="IDF4929A2C095A44678621443A5250C0A0"><enum>(d)</enum><header>Recommendations
To Meet Estimated Deficiencies</header><text>Section 1105(c) of title 31,
United States Code, is amended—</text>
<paragraph id="ID2F2DC062D0754D17B536BC10E48F6B85"><enum>(1)</enum><text>by striking
<quote>the fiscal year for</quote> the first place it appears and inserting
<quote>each fiscal year in the biennium for</quote>;</text>
</paragraph><paragraph id="ID090D19036B8A4B2DABFD0897965C8BDE"><enum>(2)</enum><text>by striking
<quote>the fiscal year for</quote> the second place it appears and inserting
<quote>each fiscal year of the biennium, as the case may be, for</quote>;
and</text>
</paragraph><paragraph id="IDBC07A0A17D864646988EF26BADFD6B6C"><enum>(3)</enum><text>by striking
<quote>for that year</quote> and inserting <quote>for each fiscal year of the
biennium</quote>.</text>
</paragraph></subsection><subsection id="ID7191F6EB893645FFA5990956B7BBB8A5"><enum>(e)</enum><header>Capital
Investment Analysis</header><text>Section 1105(e)(1) of title 31, United States
Code, is amended by striking <quote>ensuing fiscal year</quote> and inserting
<quote>biennium to which such budget relates</quote>.</text>
</subsection><subsection id="IDDF88FC10A05049408BAF95343E9E2794"><enum>(f)</enum><header>Supplemental
Budget Estimates and Changes</header>
<paragraph id="ID31465B20679749D5A2335A4FE5662D14"><enum>(1)</enum><header>In
general</header><text>Section 1106(a) of title 31, United States Code, is
amended—</text>
<subparagraph id="IDC20344B8C9AA4A5DB6A1B5DD10998530"><enum>(A)</enum><text>in the matter
preceding paragraph (1), by—</text>
<clause id="ID98B2A00712114AB49E35A78D895EB425"><enum>(i)</enum><text>inserting after
<quote>Before July 16 of each year</quote> the following: <quote>and February
15 of each even-numbered year</quote>; and</text>
</clause><clause id="ID11052C8E03BF4939AFDDB7B691E1BD5F"><enum>(ii)</enum><text>striking
<quote>fiscal year</quote> and inserting <quote>biennium</quote>;</text>
</clause></subparagraph><subparagraph id="ID6A00FE1D0DB7469396C55B6AA3C901E3"><enum>(B)</enum><text>in paragraph (1),
by striking <quote>that fiscal year</quote> and inserting <quote>each fiscal
year in such biennium</quote>;</text>
</subparagraph><subparagraph id="ID9A51828B23F44ADD983E4B6DF3FEE16B"><enum>(C)</enum><text>in paragraph (2),
by striking <quote>fiscal year</quote> and inserting <quote>biennium</quote>;
and</text>
</subparagraph><subparagraph id="IDE482C4C29C3B404D81A5630DEE87932F"><enum>(D)</enum><text>in paragraph (3),
by striking <quote>fiscal year</quote> and inserting
<quote>biennium</quote>.</text>
</subparagraph></paragraph><paragraph id="IDB918C51345C74245BDCBE4F2FB456028"><enum>(2)</enum><header>Changes</header><text>Section
1106(b) of title 31, United States Code, is amended by—</text>
<subparagraph id="ID6FD61410E51349DCBE46D8647721B45E"><enum>(A)</enum><text>striking
<quote>the fiscal year</quote> and inserting <quote>each fiscal year in the
biennium</quote>;</text>
</subparagraph><subparagraph id="ID46FD45BDCB1842E79DD405D6894D3D4E"><enum>(B)</enum><text>inserting after
<quote>Before July 16 of each year</quote> the following: <quote>and February
15 of each even-numbered year</quote>; and</text>
</subparagraph><subparagraph id="IDD6B6D05C09544FCB88CE9AACD5AD6BE4"><enum>(C)</enum><text>striking
<quote>submitted before July 16</quote> and inserting <quote>required by this
subsection</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="IDD1981375CCF743369C663E8602F14AD8"><enum>(g)</enum><header>Current
Programs and Activities Estimates</header>
<paragraph id="ID9104F0552B0F424AA9143D5116B814BF"><enum>(1)</enum><header>In
general</header><text>Section 1109(a) of title 31, United States Code, is
amended—</text>
<subparagraph id="IDC79EA427B59A45EAB7A8042F2CB66B0D"><enum>(A)</enum><text>by striking
<quote>On or before the first Monday after January 3 of each year (on or before
February 5 in 1986)</quote> and inserting <quote>At the same time the budget
required by section 1105 is submitted for a biennium</quote>; and</text>
</subparagraph><subparagraph id="IDCC9F24C23A234160BD09C8FC9395D641"><enum>(B)</enum><text>by striking
<quote>the following fiscal year</quote> and inserting <quote>each fiscal year
of such period</quote>.</text>
</subparagraph></paragraph><paragraph id="ID31B6587410C04007A4579E33A9B8341F"><enum>(2)</enum><header>Joint economic
committee</header><text>Section 1109(b) of title 31, United States Code, is
amended by striking <quote>March 1 of each year</quote> and inserting
<quote>within 6 weeks of the President’s budget submission for each
odd-numbered year (or, if applicable, as provided by section 300(b) of the
Congressional Budget Act of 1974)</quote>.</text>
</paragraph></subsection><subsection id="ID1C225C48BC58449C8C592BFFD3169BF0"><enum>(h)</enum><header>Year-Ahead
Requests for Authorizing Legislation</header><text>Section 1110 of title 31,
United States Code, is amended by—</text>
<paragraph id="ID585A321BD698408480D72FD5203C90B1"><enum>(1)</enum><text>striking
<quote>May 16</quote> and inserting <quote>March 31</quote>; and</text>
</paragraph><paragraph id="ID73C4D26F71604948A767D80FC9366ADB"><enum>(2)</enum><text>striking
<quote>year before the year in which the fiscal year begins</quote> and
inserting <quote>calendar year preceding the calendar year in which the
biennium begins</quote>.</text>
</paragraph></subsection></section><section id="IDAB66C305360942DE87DA490399D09ED0"><enum>1405.</enum><header>Two-year
appropriations; title and style of appropriations Acts</header><text display-inline="no-display-inline">Section 105 of title 1, United States Code,
is amended to read as follows:</text>
<quoted-block id="ID9205F9415BA24B799B874E17C9E31BEE" style="USC">
<section id="ID607D8EF4CC5143A4AF47C1B4260D43D8"><enum>105.</enum><header>Title and
style of appropriations Acts</header>
<subsection id="ID1CE101CFCD024229979E7A521B47AC1C"><enum>(a)</enum><text>The style and
title of all Acts making appropriations for the support of the Government shall
be as follows: <quote>An Act making appropriations (here insert the object) for
each fiscal year in the biennium of fiscal years (here insert the fiscal years
of the biennium).</quote>.</text>
</subsection><subsection id="ID63D95CBF4ACA4BCB9507DFDE85AB5254"><enum>(b)</enum><text>All Acts making
regular appropriations for the support of the Government shall be enacted for a
biennium and shall specify the amount of appropriations provided for each
fiscal year in such period.</text>
</subsection><subsection id="IDE8099B01DA7A408EA97E7A970756250F"><enum>(c)</enum><text>For purposes of
this section, the term <term>biennium</term> has the same meaning as in section
3(11) of the Congressional Budget and Impoundment Control Act of 1974 (2 U.S.C.
622(11)).</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="ID168DC8C2FD2043BDBFF443D8A089043C"><enum>1406.</enum><header>Multiyear
authorizations</header>
<subsection id="IDB888467037754127A27498706037BD24"><enum>(a)</enum><header>In
General</header><text>Title III of the Congressional Budget Act of 1974 is
amended by adding at the end the following new section:</text>
<quoted-block id="IDC6D1B0A9FD1143C0AE4C896D6F287150" style="traditional"><section id="ID4B3D52E83112459A9A17219B5727ED52"><enum>316.</enum><header>Authorizations of
appropriations</header><subsection commented="no" display-inline="yes-display-inline" id="ID34B608C34F954DD3AEB42F27623C9CCD"><enum>(a)</enum><header>Point of
Order</header><text>It shall not be in order in the House of Representatives or
the Senate to consider—</text>
<paragraph id="IDE90A2C91FC6E4519AF8600E72B4EDAA0"><enum>(1)</enum><text>any bill, joint
resolution, amendment, motion, or conference report that authorizes
appropriations for a period of less than 2 fiscal years, unless the program,
project, or activity for which the appropriations are authorized will require
no further appropriations and will be completed or terminated after the
appropriations have been expended; and</text>
</paragraph><paragraph id="IDB0A4C80BA0D149099DEA36A5B1AF872F"><enum>(2)</enum><text>in any
odd-numbered year, any authorization or revenue bill or joint resolution until
Congress completes action on the biennial budget resolution, all regular
biennial appropriations bills, and all reconciliation bills.</text>
</paragraph></subsection><subsection id="ID1AA6297C2F084978879BD10B46E50875"><enum>(b)</enum><header>Applicability</header><text>In
the Senate, subsection (a) shall not apply to—</text>
<paragraph id="ID3C2CAC35D3D04CD280CBEE2C5570B1FD"><enum>(1)</enum><text>any measure that
is privileged for consideration pursuant to a rule or statute;</text>
</paragraph><paragraph id="ID544359A2F7864106BDB1832EA1C16AFF"><enum>(2)</enum><text>any matter
considered in Executive Session; or</text>
</paragraph><paragraph id="ID29E07297A7CF4808A6954C094CCC2FDC"><enum>(3)</enum><text>an appropriations
measure or reconciliation
bill.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID3674C737088A4B81B37F67B7A0F0FADA"><enum>(b)</enum><header>Amendment to
Table of Contents</header><text>The table of contents set forth in section 1(b)
of the Congressional Budget and Impoundment Control Act of 1974 is amended by
adding after the item relating to section 315 the following new item:</text>
<quoted-block id="ID593CF949E21F4283A8ABA5E4E375A121" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 316. Authorizations of
appropriations.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="ID937303949EFA4A009DE16562AD77688E"><enum>1407.</enum><header>Government
plans on a biennial basis</header>
<subsection id="ID5DF85434712D41259CDEC0157668E06F"><enum>(a)</enum><header>Strategic
Plans</header><text>Section 306 of title 5, United States Code, is
amended—</text>
<paragraph id="ID0B36B28E508747DAA322D758D035ED67"><enum>(1)</enum><text>in subsection
(a), by striking <quote>September 30, 1997</quote> and inserting
<quote>September 30, 2011</quote>;</text>
</paragraph><paragraph id="IDE368136CA9AC46FB9FDC23B962B67DE9"><enum>(2)</enum><text>in subsection
(b)—</text>
<subparagraph id="ID97789901219447A8A23A189801004FAB"><enum>(A)</enum><text>by striking
<quote>five years forward</quote> and inserting <quote>6 years
forward</quote>;</text>
</subparagraph><subparagraph id="IDFE7C2906C38D4A79AA6F733240E053DB"><enum>(B)</enum><text>by striking
<quote>at least every three years</quote> and inserting <quote>at least every 4
years</quote>; and</text>
</subparagraph><subparagraph id="ID9EA6CFF806444DD8AC1266F6F8E4AE49"><enum>(C)</enum><text>by striking
beginning with <quote>, except that</quote> through <quote>four years</quote>;
and</text>
</subparagraph></paragraph><paragraph id="IDD49E2AEBE9B4475EACAD2B2B3D44B575"><enum>(3)</enum><text>in subsection
(c), by inserting a comma after <quote>section</quote> the second place it
appears and adding <quote>including a strategic plan submitted by September 30,
2011 meeting the requirements of subsection (a)</quote>.</text>
</paragraph></subsection><subsection id="ID22C29E5ADBA24CB38C563819E706A14C"><enum>(b)</enum><header>Budget Contents
and Submission to Congress</header><text>Paragraph (28) of section 1105(a) of
title 31, United States Code, is amended by striking <quote>beginning with
fiscal year 1999, a</quote> and inserting <quote>beginning with fiscal year
2010, a biennial</quote>.</text>
</subsection><subsection id="ID2B9D805D5A4D47E8962FC02CC1518342"><enum>(c)</enum><header>Performance
Plans</header><text>Section 1115 of title 31, United States Code, is
amended—</text>
<paragraph id="ID0497C57A730B45168C23874B941A7806"><enum>(1)</enum><text>in subsection
(a)—</text>
<subparagraph id="ID042F911B5D684ED588E4C479B89B4E3D"><enum>(A)</enum><text>in the matter
before paragraph (1)—</text>
<clause id="ID382A3E8442BA4F1482EC965790BF89C2"><enum>(i)</enum><text>by
striking <quote>section 1105(a)(29)</quote> and inserting <quote>section
1105(a)(28)</quote>; and</text>
</clause><clause id="ID65A543DE05C04DC6A32F07CB7902577E"><enum>(ii)</enum><text>by
striking <quote>an annual</quote> and inserting <quote>a
biennial</quote>;</text>
</clause></subparagraph><subparagraph id="ID77F7E12E5E844A54A1FE96E7F7C87A1A"><enum>(B)</enum><text>in paragraph (1)
by inserting after <quote>program activity</quote> the following: <quote>for
both years 1 and 2 of the biennial plan</quote>;</text>
</subparagraph><subparagraph id="ID89F2FB092C0642DCBC75F1503F2411F3"><enum>(C)</enum><text>in paragraph (5)
by striking <quote>and</quote> after the semicolon;</text>
</subparagraph><subparagraph id="IDCB29FE75BC564B93B2C683A923A0A736"><enum>(D)</enum><text>in paragraph (6)
by striking the period and inserting a semicolon; and inserting
<quote>and</quote> after the inserted semicolon; and</text>
</subparagraph><subparagraph id="IDBE83FBB0367E49BF9F42AAAE0BFBCE61"><enum>(E)</enum><text>by adding after
paragraph (6) the following:</text>
<quoted-block id="ID269DC2A23AA24912B41081F7AA12E204" style="OLC">
<paragraph id="ID6EC19ED4B97642D199DC0F1C1B6F0F77"><enum>(7)</enum><text>cover a 2-year
period beginning with the first fiscal year of the next biennial budget
cycle.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="ID319203CDB9A14470A5FA5D6AE14AF340"><enum>(2)</enum><text>in subsection (d)
by striking <quote>annual</quote> and inserting <quote>biennial</quote>;
and</text>
</paragraph><paragraph id="IDBB51A68DB7AD41518B3D4CA3D119973F"><enum>(3)</enum><text>in paragraph (6)
of subsection (f) by striking <quote>annual</quote> and inserting
<quote>biennial</quote>.</text>
</paragraph></subsection><subsection id="IDB5ABDCDC4CC44DFFA62374015EF5DB33"><enum>(d)</enum><header>Managerial
Accountability and Flexibility</header><text>Section 9703 of title 31, United
States Code, relating to managerial accountability, is amended—</text>
<paragraph id="ID857FC34DD06A4090AF3B498C5C56DCC3"><enum>(1)</enum><text>in subsection
(a)—</text>
<subparagraph id="IDB1DF96602C094F1D970A5D18410C847E"><enum>(A)</enum><text>in the first
sentence by striking <quote>annual</quote>; and</text>
</subparagraph><subparagraph id="ID5FBCFCD6EBA0493097D35A9E5EE7DD5E"><enum>(B)</enum><text>by striking
<quote>section 1105(a)(29)</quote> and inserting <quote>section
1105(a)(28)</quote>;</text>
</subparagraph></paragraph><paragraph id="ID00CDE860259E4871A3079B31EF0C524F"><enum>(2)</enum><text>in subsection
(e)—</text>
<subparagraph id="IDCDC880552ADE4ABCA18E38947B4ABDD5"><enum>(A)</enum><text>in the first
sentence by striking <quote>one or</quote> before <quote>years</quote>;</text>
</subparagraph><subparagraph id="ID41522C85B2114908B120C3F1944E1667"><enum>(B)</enum><text>in the second
sentence by striking <quote>a subsequent year</quote> and inserting <quote>a
subsequent 2-year period</quote>; and</text>
</subparagraph><subparagraph id="IDE343446618CE4D0098DCC9D848E33A25"><enum>(C)</enum><text>in the third
sentence by striking <quote>three</quote> and inserting
<quote>4</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="IDF5E89FB113EF4FD5842B244CF572D760"><enum>(e)</enum><header>Pilot Projects
for Performance Budgeting</header><text>Section 1119 of title 31, United States
Code, is amended—</text>
<paragraph id="ID896B7C624139460A97D6B01F9966CEB2"><enum>(1)</enum><text>in paragraph (1)
of subsection (d), by striking <quote>annual</quote> and inserting
<quote>biennial</quote>; and</text>
</paragraph><paragraph id="ID1A0FF33F854049DCA7410BFD3E916EDD"><enum>(2)</enum><text>in subsection
(e), by striking <quote>annual</quote> and inserting
<quote>biennial</quote>.</text>
</paragraph></subsection><subsection id="IDE472CE027D1843C282AE7322CE897AE0"><enum>(f)</enum><header>Strategic
Plans</header><text>Section 2802 of title 39, United States Code, is
amended—</text>
<paragraph id="ID387F3C77AA3C4578BA561FF2F8E4B774"><enum>(1)</enum><text>is subsection
(a), by striking <quote>September 30, 1997</quote> and inserting
<quote>September 30, 2011</quote>;</text>
</paragraph><paragraph id="ID128660E611084FFB9A528F8CD8FEEF42"><enum>(2)</enum><text>by striking
<quote>five years forward</quote> and inserting <quote>6 years
forward</quote>;</text>
</paragraph><paragraph id="IDC5C742A416834F41A27B6E6F9CC110BA"><enum>(3)</enum><text>in subsection
(b), by striking <quote>at least every three years</quote> and inserting
<quote>at least every 4 years</quote>; and</text>
</paragraph><paragraph id="IDA740F9A08CF94B25B5FABD2731194EE2"><enum>(4)</enum><text>in subsection
(c), by inserting a comma after <quote>section</quote> the second place it
appears and inserting <quote>including a strategic plan submitted by September
30, 2011 meeting the requirements of subsection (a)</quote>.</text>
</paragraph></subsection><subsection id="ID636FCBDD88574E7D99C3D353EFB65956"><enum>(g)</enum><header>Performance
Plans</header><text>Section 2803(a) of title 39, United States Code, is
amended—</text>
<paragraph id="ID91474C50E5B9442C9BEE35F31B271040"><enum>(1)</enum><text>in the matter
before paragraph (1), by striking <quote>an annual</quote> and inserting
<quote>a biennial</quote>;</text>
</paragraph><paragraph id="IDE4C82F36D49247709D8F34BE8DC383A3"><enum>(2)</enum><text>in paragraph (1),
by inserting after <quote>program activity</quote> the following: <quote>for
both years 1 and 2 of the biennial plan</quote>;</text>
</paragraph><paragraph id="ID6CC436DDB8CE4E6685F90128D56C14A2"><enum>(3)</enum><text>in paragraph (5),
by striking <quote>and</quote> after the semicolon;</text>
</paragraph><paragraph id="ID4E5675D4E10C4784BDBBFF485EE5FA54"><enum>(4)</enum><text>in paragraph (6),
by striking the period and inserting <quote>; and</quote>; and</text>
</paragraph><paragraph id="IDAF3C406E302F40BF8613340F72054540"><enum>(5)</enum><text>by adding after
paragraph (6) the following:</text>
<quoted-block id="ID74C03EDAFCE043A4B62EA5289A9C7C42" style="OLC">
<paragraph id="ID97CF6538CA9F484185D2E499B2340038"><enum>(7)</enum><text>cover a 2-year
period beginning with the first fiscal year of the next biennial budget
cycle.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID2A31FDA8E5BE4BB8A496C25EF72E36D7"><enum>(h)</enum><header>Committee Views
of Plans and Reports</header><text>Section 301(d) of the Congressional Budget
Act (2 U.S.C. 632(d)) is amended by adding at the end <quote>Each committee of
the Senate or the House of Representatives shall review the strategic plans,
performance plans, and performance reports, required under section 306 of title
5, United States Code, and sections 1115 and 1116 of title 31, United States
Code, of all agencies under the jurisdiction of the committee. Each committee
may provide its views on such plans or reports to the Committee on the Budget
of the applicable House.</quote>.</text>
</subsection><subsection id="ID098ABBA4C4BB44E78738A097417355EB"><enum>(i)</enum><header>Effective
Date</header>
<paragraph id="ID3126A589875F468FAC827AF852B60C4D"><enum>(1)</enum><header>In
general</header><text>The amendments made by this section shall take effect on
March 1, 2011.</text>
</paragraph><paragraph id="ID3B64FCAA22F240269EF0A87C675AE343"><enum>(2)</enum><header>Agency
actions</header><text>Effective on and after the date of enactment of this Act,
each agency shall take such actions as necessary to prepare and submit any plan
or report in accordance with the amendments made by this Act.</text>
</paragraph></subsection></section><section id="ID99EAFA1C874D4752A9B62ECE7AE0A7BD"><enum>1408.</enum><header>Biennial
appropriations bills</header>
<subsection id="ID9D10EC6F47CF45DA974215293F9ADF63"><enum>(a)</enum><header>In
General</header><text>Title III of the Congressional Budget Act of 1974 (2
U.S.C. 631 et seq.) is amended by adding at the end the following:</text>
<quoted-block id="ID6E682E6A9F0F4B5589851A03EC4D2D4A" style="traditional"><section id="IDBE461298FBA9425FAA0F2EC8917CC54A"><enum>317.</enum><header>Consideration of biennial appropriations
bills</header><text>It shall not be
in order in the House of Representatives or the Senate in any odd-numbered year
to consider any regular bill providing new budget authority or a limitation on
obligations under the jurisdiction of any of the subcommittees of the
Committees on Appropriations for only the first fiscal year of a biennium,
unless the program, project, or activity for which the new budget authority or
obligation limitation is provided will require no additional authority beyond 1
year and will be completed or terminated after the amount provided has been
expended.</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID726734F8B2424421B7AECAE409E10262"><enum>(b)</enum><header>Amendment to
Table of Contents</header><text>The table of contents set forth in section 1(b)
of the Congressional Budget and Impoundment Control Act of 1974 is amended by
adding after the item relating to section 316 the following new item:</text>
<quoted-block id="ID21311D15A15A4A69B84E3FDE541D1346" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 317. Consideration of biennial
appropriations
bills.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="ID62395C3BFBAE438BAD018437BD370751"><enum>1409.</enum><header>Report on
two-year fiscal period</header><text display-inline="no-display-inline">Not
later than 180 days after the date of enactment of this Act, the Director of
OMB shall—</text>
<paragraph id="IDBA3838F6DE754E9DA930D8E05EE849EB"><enum>(1)</enum><text>determine the
impact and feasibility of changing the definition of a fiscal year and the
budget process based on that definition to a 2-year fiscal period with a
biennial budget process based on the 2-year period; and</text>
</paragraph><paragraph id="ID24ED72E2347340589D411E39EEFEE15D"><enum>(2)</enum><text>report the
findings of the study to the Committees on the Budget of the House of
Representatives and the Senate.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="ID057FB9BA30F04AA9A53645AC1A6F3E23" section-type="subsequent-section"><enum>1410.</enum><header>Effective
date</header><text display-inline="no-display-inline">Except as provided in
section 1407, this subtitle and the amendments made by this subtitle shall take
effect on January 1, 2011, and shall apply to budget resolutions and
appropriations for the biennium beginning with fiscal year 2012.</text>
</section></subtitle><enum>II</enum><header>Making Congress
tighten its belt</header>
<section id="id93CCB1AC039D41DE8714E5A3D135B013"><enum>2001.</enum><header>Ending
automatic pay raises for Members of Congress</header>
<subsection id="IDAF6979AA86384907ADF608455869FD00"><enum>(a)</enum><header>In
general</header><text>Paragraph (2) of section 601(a) of the Legislative
Reorganization Act of 1946 (<external-xref legal-doc="usc" parsable-cite="usc/2/31">2 U.S.C. 31</external-xref>) is repealed.</text>
</subsection><subsection id="IDE78F57C41823426CB9F8CB983407B084"><enum>(b)</enum><header>Technical and
conforming amendments</header><text>Section 601(a)(1) of such Act is
amended—</text>
<paragraph id="ID7A83AAE078ED43AC888D6CB1C55B00A7"><enum>(1)</enum><text>by striking
<quote>(a)(1)</quote> and inserting <quote>(a)</quote>;</text>
</paragraph><paragraph id="ID5A6CF4A5E5DE4A1081BFA41E6C053E40"><enum>(2)</enum><text>by redesignating
subparagraphs (A), (B), and (C) as paragraphs (1), (2), and (3), respectively;
and</text>
</paragraph><paragraph id="ID1A5FC372D789421ABC42FCBABB5F3EA0"><enum>(3)</enum><text>by striking
<quote>as adjusted by paragraph (2) of this subsection</quote> and inserting
<quote>adjusted as provided by law</quote>.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id8227279B349845BC8B6479099E2BE8A8"><enum>2002.</enum><header>Cutting
spending on congressional offices</header>
<subsection id="id1367F177BC144BD7B3BA87DDAEE3C8C4"><enum>(a)</enum><header>Senators'
official personnel and office expense account</header><text display-inline="yes-display-inline">Of the amounts appropriated under the
heading <quote><header-in-text level="appropriations-small" style="OLC">Senators' official personnel and office expense
account</header-in-text></quote> under the heading <quote><header-in-text level="subsection" style="OLC">Contingent Expenses of the Senate</header-in-text></quote> under
title I of the Legislative Branch Appropriations Act, 2010, $21,100,000 are
rescinded.</text>
</subsection><subsection id="id70992517AE3E4D5DA19409ACBDCC56B3"><enum>(b)</enum><header>Members' clerk
hire, official expenses of members, and official mail</header><text display-inline="yes-display-inline">Of the amounts appropriated under the
heading <quote><header-in-text level="appropriations-small" style="OLC">Including members' clerk hire, official expenses of members, and
official mail</header-in-text></quote> under the heading <quote><header-in-text level="subsection" style="OLC">Members' Representational
Allowances</header-in-text></quote> under title I of the Legislative Branch
Appropriations Act, 2010, $33,000,000 are rescinded.</text>
</subsection></section><section id="id017D2EB0553345AEAF8903940C53BD55"><enum>2003.</enum><header>Improving
Senate efficiency and transparency</header><text display-inline="no-display-inline">Section 302(g) of the Federal Election
Campaign Act of 1971 (2 U.S.C. 432(g)) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idBE4878E8EE1C419AA526D04B037DC398" style="OLC">
<subsection id="id6C0C8C84500A4CBE95523E09540D23EB" indent="down1"><enum>(g)</enum><header>Filing with the
commission</header><text>All designations, statements, and reports required to
be filed under this Act shall be filed with the
Commission.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>III</enum><header>Ending
corporate welfare</header>
<section id="id9303009BF9354D12822E87D875405CE0"><enum>3001.</enum><header>Ending the
Wall Street bail-out</header><text display-inline="no-display-inline">Notwithstanding paragraph (3) of section
115(a) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C.
5225(a)(3)), no amount may be obligated by the Secretary of the Treasury under
that paragraph (3), or any other provision of the Emergency Economic
Stabilization Act of 2008, on or after the date of enactment of this
Act.</text>
</section><section id="id3D07C1A0EE754E5EBED10D99CA76C205"><enum>3002.</enum><header>Ending
subsidies for private student loan companies</header>
<subsection id="idA261EEAC976948359EA0D69474B6FBF2"><enum>(a)</enum><header>Short
title</header><text display-inline="yes-display-inline">This section may be
cited as the <quote><short-title></short-title><short-title>Student
Loan Reform Act</short-title></quote> .</text>
</subsection><subsection id="HC11C5FF928EE49A385FC4F7897747AB9"><enum>(b)</enum><header>References</header><text display-inline="yes-display-inline">Except as otherwise expressly provided,
whenever in this section an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the reference shall
be considered to be made to a section or other provision of the Higher
Education Act of 1965 (20 U.S.C. 1001 et seq.).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HC9E762280272427BBD7935B96EBBB5CA"><enum>(c)</enum><header>Federal Family
Education Loan appropriations</header><text display-inline="yes-display-inline">Section 421 (20 U.S.C. 1071) is
amended—</text>
<paragraph id="HBF3ECDEF124A4FDC9025085F31455597"><enum>(1)</enum><text>in subsection (b),
in the matter following paragraph (6), by inserting <quote>, except that no
sums may be expended after June 30, 2010, with respect to loans under this part
for which the first disbursement would be made after such date</quote> after
<quote>expended</quote>; and</text>
</paragraph><paragraph id="HF5F7AC0C47DA4202B704AB68F385AB5F"><enum>(2)</enum><text>by adding at the
end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H26E25F88439E43FF8D9F43E9AB16D910" style="OLC">
<subsection id="H0B60570196D04C139223DC071D6BFA37"><enum>(d)</enum><header>Termination of
authority To make or insure new loans</header><text display-inline="yes-display-inline">Notwithstanding paragraphs (1) through (6)
of subsection (b) or any other provision of law—</text>
<paragraph id="HE8C0BCEF08A34EA2BC9FAAD7DF07C20D"><enum>(1)</enum><text>no new loans
(including consolidation loans) may be made or insured under this part after
June 30, 2010; and</text>
</paragraph><paragraph id="H992514FD42624003811CCE38BF762B9C"><enum>(2)</enum><text>no funds are
authorized to be appropriated, or may be expended, under this Act or any other
Act to make or insure loans under this part (including consolidation loans) for
which the first disbursement would be made after June 30, 2010,</text>
</paragraph><continuation-text continuation-text-level="subsection">except as
expressly authorized by an Act of Congress enacted after the date of enactment
of the <short-title>Student Loan Reform
Act</short-title>.</continuation-text></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H4C616A0B3B8B433E9A4C6C825D317A8D"><enum>(d)</enum><header>Scope and
duration of Federal loan insurance program</header><text display-inline="yes-display-inline">Section 424(a) (20 U.S.C. 1074(a)) is
amended by striking <quote>September 30, 1976,</quote> and all that follows and
inserting <quote>September 30, 1976, for each of the succeeding fiscal years
ending prior to October 1, 2009, and for the period from October 1, 2009, to
June 30, 2010, for loans first disbursed on or before June 30,
2010.</quote>.</text>
</subsection><subsection id="HF6B144CC45E4479E90A970A5536A71C3"><enum>(e)</enum><header>Applicable
interest rates</header><text display-inline="yes-display-inline">Section
427A(l) (20 U.S.C. 1077a(l)) is amended—</text>
<paragraph id="HD5FF6B0F2C124DA8A2F1F64EC20293D7"><enum>(1)</enum><text>in paragraph (1),
by inserting <quote>and before July 1, 2010,</quote> after <quote>July 1,
2006,</quote>;</text>
</paragraph><paragraph id="HB5F19145E6AE458A9B2E961249B1C903"><enum>(2)</enum><text>in paragraph (2),
by inserting <quote>and before July 1, 2010,</quote> after <quote>July 1,
2006,</quote>;</text>
</paragraph><paragraph id="H35859817D2C6405588292F28E1BCE823"><enum>(3)</enum><text>in paragraph (3),
by inserting <quote>and that was disbursed before July 1, 2010,</quote> after
<quote>July 1, 2006,</quote>; and</text>
</paragraph><paragraph id="HA8945BDCD527411C8F3932E91727DDCF"><enum>(4)</enum><text>in paragraph
(4)—</text>
<subparagraph id="HD07952E5CE544699B53730165D5C0C2F"><enum>(A)</enum><text>in the matter
preceding subparagraph (A), by striking <quote>July 1, 2012</quote> and
inserting <quote>July 1, 2010</quote>; and</text>
</subparagraph><subparagraph commented="no" id="HC8F96E8BF1BA44A787ACF9C1FD24C739"><enum>(B)</enum><text>by repealing
subparagraphs (D) and (E).</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="H47AAA8046C644C228A6B483160B7318D"><enum>(f)</enum><header>Federal payments
To reduce student interest costs</header>
<paragraph commented="no" id="H86718BB29AF64A6381022BBEBA885073"><enum>(1)</enum><header>Higher Education
Act of 1965</header><text display-inline="yes-display-inline">Section 428 (20
U.S.C. 1078) is amended—</text>
<subparagraph commented="no" id="H628ACA1FC4FD4418A6C96445E3859468"><enum>(A)</enum><text>in subsection
(a)—</text>
<clause id="H42CB5EAF5B8640DF971DF857A1B31D90"><enum>(i)</enum><text>in
paragraph (1), in the matter preceding subparagraph (A), by inserting
<quote>for which the first disbursement is made before July 1, 2010,
and</quote> after <quote>eligible institution</quote>; and</text>
</clause><clause id="HD07F6DCC509341ED9505E6FAB8E59F42"><enum>(ii)</enum><text>in
paragraph (5), by striking <quote>September 30, 2014,</quote> and all that
follows through the period and inserting <quote>June 30, 2010.</quote>;</text>
</clause></subparagraph><subparagraph commented="no" id="H08E487279D4247459AC8D4807ABDE3A1"><enum>(B)</enum><text>in subsection
(b)(1)—</text>
<clause commented="no" id="HF48A214C45D9471CAA7BA64A94613A0C"><enum>(i)</enum><text>in subparagraph
(G)(ii), by inserting <quote>and before July 1, 2010,</quote> after <quote>July
1, 2006,</quote>; and</text>
</clause><clause commented="no" id="HBD1D3FAE447D4F25BBF8EAF761BF3BFE"><enum>(ii)</enum><text>in subparagraph
(H)(ii), by inserting <quote>and that are first disbursed before July 1,
2010,</quote> after <quote>July 1, 2006,</quote>;</text>
</clause></subparagraph><subparagraph commented="no" id="HD90DDCC391B94356A91F8FCE8184443A"><enum>(C)</enum><text>in subsection
(f)(1)(A)(ii)—</text>
<clause commented="no" id="H4060B8E75056489D914FEE959F50F3F0"><enum>(i)</enum><text>by striking
<quote>during fiscal years beginning</quote>; and</text>
</clause><clause commented="no" id="H713E374282114D9C974EBF282867E4E3"><enum>(ii)</enum><text>by inserting
<quote>and first disbursed before July 1, 2010,</quote> after <quote>October 1,
2003,</quote>; and</text>
</clause></subparagraph><subparagraph commented="no" id="HC0F59749220D4523BEA8F77B5C463FD1"><enum>(D)</enum><text>in subsection
(j)(1), by inserting <quote>, before July 1, 2010,</quote> after <quote>section
435(d)(1)(D) of this Act shall</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" id="H1FF8FDAD368D4BFE868A9B63553E6AC3"><enum>(2)</enum><header>College Cost
Reduction and Access Act</header><text>Section 303 of the College Cost
Reduction and Access Act (Public Law 110–84) is repealed.</text>
</paragraph></subsection><subsection id="H2C7B6B22B0E54794B67B98941EF712FA"><enum>(g)</enum><header>Federal PLUS
Loans</header><text display-inline="yes-display-inline">Section 428B(a)(1) (20
U.S.C. 1078–2(a)(1)) is amended by striking <quote>A graduate</quote> and
inserting <quote>Prior to July 1, 2010, a graduate</quote>.</text>
</subsection><subsection id="HC8F8B254C475429FA2BE2A6BA0A8E95B"><enum>(h)</enum><header>Federal
Consolidation Loan</header>
<paragraph id="H8A92FFE26617418B96D48C9D18F2EEF5"><enum>(1)</enum><header>Amendments</header><text display-inline="yes-display-inline">Section 428C (20 U.S.C. 1078–3) is
amended—</text>
<subparagraph commented="no" id="H791AA39C4FD34EA8B191812A459113CA"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (a)(4)(A), by inserting
<quote>, and first disbursed before July 1, 2010</quote> after <quote>under
this part</quote>;</text>
</subparagraph><subparagraph id="H5D7A329562E64C75B36356DE79886DFC"><enum>(B)</enum><text>in subsection
(b)—</text>
<clause id="H79151DC0471C4ECCA3988671FAB70EEB"><enum>(i)</enum><text>in
paragraph (1)(E), by inserting before the semicolon <quote>, and before July 1,
2010</quote>; and</text>
</clause><clause id="HE32CF28C041F49AAA5C0CA0FC93B02C6"><enum>(ii)</enum><text>in
paragraph (5), by striking <quote>In the event that</quote> and inserting
<quote>If, before July 1, 2010,</quote>;</text>
</clause></subparagraph><subparagraph id="HBC3C5FC2C7C54DABB3B257114B739CAB"><enum>(C)</enum><text>in subsection
(c)(1)—</text>
<clause id="H064400A75B6F40F781504D815C74424F"><enum>(i)</enum><text>in
subparagraph (A)(ii), by inserting <quote>and that is disbursed before July 1,
2010,</quote> after <quote>2006,</quote>; and</text>
</clause><clause id="H9DDB51BCF17A4C37A8176AE5A4FB1E64"><enum>(ii)</enum><text>in
subparagraph (C), by inserting <quote>and first disbursed before July 1,
2010,</quote> after <quote>1994,</quote>; and</text>
</clause></subparagraph><subparagraph id="H48861AB49367431C982DC8B53EAF81BF"><enum>(D)</enum><text>in subsection (e),
by striking <quote>September 30, 2014.</quote> and inserting <quote>June 30,
2010. No loan may be made under this section for which the first disbursement
would be on or after July 1, 2010.</quote>.</text>
</subparagraph></paragraph><paragraph id="HDF4F63753712484B81EB01824D7447AE"><enum>(2)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
paragraph (1)(A) shall be effective at the close of June 30, 2010.</text>
</paragraph></subsection><subsection id="HBA04784D33244DDE83EF9C351710EA6C"><enum>(i)</enum><header>Unsubsidized
Stafford loans for middle-Income borrowers</header><text display-inline="yes-display-inline">Section 428H (20 U.S.C. 1078–8) is
amended—</text>
<paragraph id="H4C3788C7D1214EE2806817452579FA0C"><enum>(1)</enum><text>in subsection (a),
by inserting <quote>that are first disbursed before July 1, 2010,</quote> after
<quote>under this part</quote>;</text>
</paragraph><paragraph id="HA0603EE8D53C45A3A4E190CC228768DF"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (b)—</text>
<subparagraph id="H57BD80745BBE4990BD5229E41C0D93AE"><enum>(A)</enum><text>by striking
<quote>Any student</quote> and inserting <quote>Prior to July 1, 2010, any
student</quote>; and</text>
</subparagraph><subparagraph id="HA44A8319EEDD4823BAEF6AC63E35B0FF"><enum>(B)</enum><text>by inserting
<quote>for which the first disbursement is made before such date</quote> after
<quote>unsubsidized Federal Stafford Loan</quote>; and</text>
</subparagraph></paragraph><paragraph commented="no" id="H3971EE735E814C01BD194D9C4AAC366E"><enum>(3)</enum><text>in subsection (h),
by inserting <quote>and that are first disbursed before July 1, 2010,</quote>
after <quote>July 1, 2006,</quote>.</text>
</paragraph></subsection><subsection commented="no" id="H1DE83BC7E6904D4BADF3DA71E11D26C4"><enum>(j)</enum><header>Loan repayment
for civil legal assistance attorneys</header><text display-inline="yes-display-inline">Section 428L(b)(2)(A) (20 U.S.C.
1078–12(b)(2)(A)) is amended—</text>
<paragraph id="H03C8294752FB4F18854F744EB25A2DD8"><enum>(1)</enum><text>by amending clause
(i) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H00F88842BC1344478D45475E37CE1671" style="OLC">
<clause id="HE3415013C106457C83666F99DE427B9A"><enum>(i)</enum><text display-inline="yes-display-inline">subject to clause (ii)—</text>
<subclause id="H8E34300F25C54118A92E309FE5BEDAA3"><enum>(I)</enum><text display-inline="yes-display-inline">a loan made, insured, or guaranteed under
this part, and that is first disbursed before July 1, 2010; or</text>
</subclause><subclause id="H2F614933714D41D9B425E00A797D103C"><enum>(II)</enum><text>a loan made under
part D or part E; and</text>
</subclause></clause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="HA0233E6B0C2A45AD8377D78743003205"><enum>(2)</enum><text>in clause
(ii)—</text>
<subparagraph id="H5D7420B9C56E4900A672BC8777E05F2D"><enum>(A)</enum><text>by striking
<quote>428C or 455(g)</quote> and inserting <quote>428C that is disbursed
before July 1, 2010, or section 455(g)</quote>; and</text>
</subparagraph><subparagraph id="H5504131303734F5DA91E642FB6103EBF"><enum>(B)</enum><text>in subclause (II),
by inserting <quote>for which the first disbursement is made before July 1,
2010</quote> after <quote>or 428H</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="HCA5082ACCCB042ABB5A62A80639709AC"><enum>(k)</enum><header>Special
allowances</header><text display-inline="yes-display-inline">Section 438 (20
U.S.C. 1087–1) is amended—</text>
<paragraph id="HFEF5C9A9CD184066A8B06C54F07720F8"><enum>(1)</enum><text>in subsection
(b)(2)(I)—</text>
<subparagraph id="H42DCD31EDA9B4B89A7354D5FF6306BF2"><enum>(A)</enum><text>in the header, by
inserting <quote><header-in-text level="subparagraph" style="OLC">, and before
July 1, 2010</header-in-text></quote> after <quote><header-in-text level="subparagraph" style="OLC">2000</header-in-text></quote>;</text>
</subparagraph><subparagraph id="H7653B03D23DF4294A9C232CDF42C2FBC"><enum>(B)</enum><text>in clause (i), by
inserting <quote>and before July 1, 2010,</quote> after
<quote>2000,</quote>;</text>
</subparagraph><subparagraph id="HF77993EFE94A49FC94A4F96E72E43880"><enum>(C)</enum><text>in clause
(ii)(II), by inserting <quote>and before July 1, 2010,</quote> after
<quote>2006,</quote>;</text>
</subparagraph><subparagraph id="HB69E929A7CE54F16A990A8E31CFE3102"><enum>(D)</enum><text>in clause (iii),
by inserting <quote>and before July 1, 2010,</quote> after
<quote>2000,</quote>;</text>
</subparagraph><subparagraph id="H8759F18F66A2495A8E5FBF74DE525431"><enum>(E)</enum><text>in clause (iv), by
inserting <quote>and that is disbursed before July 1, 2010,</quote> after
<quote>2000,</quote>;</text>
</subparagraph><subparagraph id="HB0C738B8B36241149A2D1BFC0A3DE651"><enum>(F)</enum><text>in clause (v)(I),
by inserting <quote>and before July 1, 2010,</quote> after
<quote>2006,</quote>; and</text>
</subparagraph><subparagraph id="H67AC4562EF734AF197A746AE17BBA0C4"><enum>(G)</enum><text>in clause
(vi)—</text>
<clause id="H3D76316C9FBC4F2F829D0DBEACC3BE62"><enum>(i)</enum><text>in
the header, by inserting <quote><header-in-text level="clause" style="OLC">,
and before July 1, 2010</header-in-text></quote> after <quote><header-in-text level="clause" style="OLC">2007</header-in-text></quote>; and</text>
</clause><clause id="H9888BD1521344609B9D9EA6A1F2B0246"><enum>(ii)</enum><text>in
the matter preceding subclause (I), by inserting <quote>and before July 1,
2010,</quote> after <quote>2007,</quote>;</text>
</clause></subparagraph></paragraph><paragraph id="H20974EEE6AA145ABAE4D6CFEB5C7AED2"><enum>(2)</enum><text>in subsection
(c)—</text>
<subparagraph id="HA20F181245D146CABF456DCFB4C518C2"><enum>(A)</enum><text>in paragraph
(2)(B)—</text>
<clause id="HA9F3F846046E48A38813118407F9B296"><enum>(i)</enum><text>in
clause (iii), by inserting <quote>and</quote> after the semicolon;</text>
</clause><clause id="HCE1531A45B78410A8CC146E28596DAE4"><enum>(ii)</enum><text>in
clause (iv), by striking <quote>; and</quote> and inserting a period;
and</text>
</clause><clause id="HFAF198D54109454FA06A65D149F38041"><enum>(iii)</enum><text>by
striking clause (v); and</text>
</clause></subparagraph><subparagraph id="HA5C7CD070DF2422B9A0BA7BCF9758D03"><enum>(B)</enum><text>in paragraph (6),
by inserting <quote>and first disbursed before July 1, 2010,</quote> after
<quote>1992,</quote>; and</text>
</subparagraph></paragraph><paragraph id="HFA59300A05664F3592F74D2CB3247608"><enum>(3)</enum><text>in subsection
(d)(2)(B), by inserting <quote>, and before July 1, 2010</quote> after
<quote>2007</quote>.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H622438CF7D634E69A07E84FE797E09E2"><enum>(l)</enum><header>Revised special
allowance calculation</header>
<paragraph id="H636CB82426CF4FAB8541607EC7A0F6B2"><enum>(1)</enum><header>Revised
calculation rule</header><text>Section 438(b)(2)(I) of the Higher Education Act
of 1965 (20 U.S.C. 1087–1(b)(2)(I)) is amended by adding at the end the
following new clause:</text>
<quoted-block id="H980BAC1E8B414422B26240876E5BD5FC" style="OLC">
<clause id="HD452BEC0A85B4268AFD9FDFD963F39A5"><enum>(vii)</enum><header>Revised
calculation rule to reflect financial market conditions</header>
<subclause id="HBE6BF11EEBFF439CBEB4B7451A56AAE3"><enum>(I)</enum><header>Calculation
based on LIBOR</header><text display-inline="yes-display-inline">For the
calendar quarter beginning on October 1, 2009, and each subsequent calendar
quarter, in computing the special allowance paid pursuant to this subsection
with respect to loans described in
<internal-xref idref="H369DB86C6ECE4258BB1CF873D581DDFD" legis-path="(ix)(II)">subclause (II)</internal-xref>, clause (i)(I) of this
subparagraph shall be applied by substituting <quote>of the 1-month London
Inter Bank Offered Rate (LIBOR) for United States dollars in effect for each of
the days in such quarter as compiled and released by the British Bankers
Association</quote> for <quote>of the quotes of the 3-month commercial paper
(financial) rates in effect for each of the days in such quarter as reported by
the Federal Reserve in Publication H–15 (or its successor) for such 3-month
period</quote>.</text>
</subclause><subclause id="H369DB86C6ECE4258BB1CF873D581DDFD"><enum>(II)</enum><header>Loans eligible
for LIBOR-based calculation</header><text display-inline="yes-display-inline">The special allowance paid pursuant to this
subsection shall be calculated as described in
<internal-xref idref="HBE6BF11EEBFF439CBEB4B7451A56AAE3" legis-path="(ix)(I)">subclause (I)</internal-xref> with respect to special
allowance payments for the 3-month period ending December 31, 2009, and each
succeeding 3-month period, on loans for which the first disbursement is
made—</text>
<item id="H4D1C1C04145345CF8E5608FE81F204F0"><enum>(aa)</enum><text>on
or after the date of enactment of the <short-title>Student
Loan Reform Act</short-title>, and before July 1, 2010; or</text>
</item><item id="HA92712F6B08140168AB5C7AE54911F6D"><enum>(bb)</enum><text display-inline="yes-display-inline">on or after January 1, 2000, and before the
date of enactment of the <short-title>Student Loan Reform
Act</short-title>, if, not later than the last day of the second full fiscal
quarter after the date of enactment of such Act, the holder of the loan (or, if
the holder acts as eligible lender trustee for the beneficial owner of the
loan, the beneficial owner of the loan), affirmatively and permanently waives
all contractual, statutory or other legal rights to a special allowance paid
pursuant to this subsection that is calculated using the formula in effect at
the time the loans were first disbursed.</text>
</item></subclause><subclause id="HBBF6580CEEFF476587F6857C2E139B68"><enum>(III)</enum><header>Terms of
waiver</header>
<item id="H0A0EC7394F7B4E39BA9226F7734CDA2F"><enum>(aa)</enum><header>In
general</header><text display-inline="yes-display-inline">A waiver pursuant to
subclause (II)(bb) shall be in a form (printed or electronic) prescribed by the
Secretary, and shall be applicable to—</text>
<subitem id="H081F7C42FD0D4D9BB1BC9DCE23E061ED"><enum>(AA)</enum><text display-inline="yes-display-inline">all loans described in such subclause that
the lender holds solely in its own right under any lender identification number
associated with the holder (pursuant to section 487B);</text>
</subitem><subitem id="HF76D8E26C0754B668501F309D2AEFB24"><enum>(BB)</enum><text>all loans
described in such subclause for which the beneficial owner has the authority to
make an election of a waiver under such subclause, regardless of the lender
identification number associated with the loan or the lender that holds the
loan as eligible lender trustee on behalf of such beneficial owner; and</text>
</subitem><subitem id="H6EF90F2CA3D643F88F51A70AA16C675B"><enum>(CC)</enum><text>all future
calculations of the special allowance on loans that, on the date of such
waiver, are loans described in subitem (AA) or (BB), or that, after such date,
become loans described in subitem (AA) or (BB).</text>
</subitem></item><item id="H2F2DB64A0C6043FDAE2F494CC492FC3D"><enum>(bb)</enum><header>Exceptions</header><text>Any
waiver pursuant to subclause (II)(bb) that is elected for loans described in
subitem (AA) or (BB) of item (aa) shall not apply to any loan described in such
subitem for which the lender or beneficial owner of the loan demonstrates to
the satisfaction of the Secretary that—</text>
<subitem id="H9859046A30134BD3A5AC68C686DEEA05"><enum>(AA)</enum><text>in accordance
with an agreement entered into before the date of enactment of the
<short-title>Student Loan Reform Act</short-title> by
which such lender or owner is governed and that applies to such loans, such
lender or owner is not legally permitted to make an election of such waiver
with respect to such loans without the approval of one or more third parties
with an interest in the loans, and that the lender or owner followed all
available options under such agreement to obtain such approval, and was unable
to do so; or</text>
</subitem><subitem id="HECD42B728292444E9D9009163DA92680"><enum>(BB)</enum><text>such lender or
beneficial owner presented the proposal of electing such a waiver applicable to
such loans associated with an obligation rated by a nationally recognized
statistical rating organization (as defined in section 3(a)(62) of the
Securities Exchange Act of 1934), and such rating organization provided a
written opinion that the agency would downgrade the rating applicable to such
obligation if the lender or owner elected such a waiver.</text>
</subitem></item></subclause><subclause commented="no" id="H228F7938235441CA902D396392256E98"><enum>(IV)</enum><header>Participant’s
yield</header><text display-inline="yes-display-inline">For the calendar
quarter beginning on October 1, 2009, and each subsequent calendar quarter, the
Secretary’s participant yield in any loan in which the Secretary has purchased
a participation interest and for which the first disbursement is made on or
after January 1, 2000, and before October 1, 2009, shall be determined by using
the LIBOR-based rate described in
<internal-xref idref="HBE6BF11EEBFF439CBEB4B7451A56AAE3" legis-path="(vii)(I)">subclause (I) </internal-xref>as the substitute rate (for
the commercial paper rate) referred to in the participation agreement between
the Secretary and such
lender.</text>
</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H1426C0D58CE549BCAB96F430F00D9027"><enum>(2)</enum><header>Conforming
amendment</header><text>Section 438(b)(2)(I) (20 U.S.C. 1087–1(b)(2)(I)) is
further amended—</text>
<subparagraph id="H3AA0BBC9F74747D5A979C7743318BC24"><enum>(A)</enum><text>in clause (i)(II),
by striking <quote>such average bond equivalent rate</quote> and inserting
<quote>the rate determined under subclause (I)</quote>; and</text>
</subparagraph><subparagraph id="H9D3CB375A9854FB7A8A86F1E7A8E0836"><enum>(B)</enum><text>in clause (v)(III)
by striking <quote>(iv), and (vi)</quote> and inserting <quote>(iv), (vi), and
(vii)</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="H30A1B9F6C1184C87B7E9AE395681EFB7"><enum>(m)</enum><header>Origination of
Direct Loans at institutions located outside the United States</header>
<paragraph commented="no" id="HEAF4A0E884574B29A3ABFE8FCD568C70"><enum>(1)</enum><header>Loans for
students attending institutions located outside the United States</header><text display-inline="yes-display-inline">Section 452 (20 U.S.C. 1087b) is amended by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HAA154CF47C4842BE8B6F6ACC931525D3" style="OLC">
<subsection commented="no" id="H59DD5CD73365493A975679E6506A382F"><enum>(d)</enum><header>Institutions
located outside the United States</header><text display-inline="yes-display-inline">Loan funds for students (and parents of
students) attending institutions located outside the United States shall be
disbursed through a financial institution located in the United States and
designated by the Secretary to serve as the agent of such institutions with
respect to the receipt of the disbursements of such loan funds and the transfer
of such funds to such institutions. To be eligible to receive funds under this
part, an otherwise eligible institution located outside the United States shall
make arrangements, subject to regulations by the Secretary, with the agent
designated by the Secretary under this subsection to receive funds under this
part.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="H867D78CAA2204C40B99F11A39252506C"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph id="H58B1EE866A7A476E967CC0986D5B8233"><enum>(A)</enum><header>Amendments</header><text display-inline="yes-display-inline">Section 102 (20 U.S.C. 1002), as amended by
section 102 of the Higher Education Opportunity Act (Public Law 110–315) and
section 101 of Public Law 111–39, is amended—</text>
<clause commented="no" id="HA6D5E6CD37B04C908444D88E7EDA854A"><enum>(i)</enum><text>by striking
<quote>part B</quote> each place it appears and inserting <quote>part
D</quote>;</text>
</clause><clause commented="no" id="HCF04661FCA8944128ADEB044DDCBC0E1"><enum>(ii)</enum><text>in subsection
(a)(1)(C), by inserting <quote>, consistent with the requirements of section
452(d)</quote> before the period at the end; and</text>
</clause><clause commented="no" id="HF009C0B7E5ED430587ADABCB089C41BF"><enum>(iii)</enum><text>in subsection
(a)(2)(A)—</text>
<subclause id="HDD1F638BB250493B81C73C3C1D9FF875"><enum>(I)</enum><text display-inline="yes-display-inline">in the matter preceding clause (i), by
striking <quote>made, insured, or guaranteed</quote> and inserting
<quote>made</quote>; and</text>
</subclause><subclause id="HCF89AD07E8A54BEB9EE8E616BF731A3F"><enum>(II)</enum><text>in clause
(iii)—</text>
<item id="H75B1F0C5BB26461089D3135C3E8E5402"><enum>(aa)</enum><text>in
subclause (III), by striking <quote>only Federal Stafford</quote> and all that
follows through <quote>section 428B</quote> and inserting <quote>only Federal
Direct Stafford Loans under section 455(a)(2)(A), Federal Direct Unsubsidized
Stafford Loans under section 455(a)(2)(D), or Federal Direct PLUS Loans under
section 455(a)(2)(B)</quote>; and</text>
</item><item id="H3B10D28432E14D1D883CF7F4EFAB0031"><enum>(bb)</enum><text display-inline="yes-display-inline">in subclause (V), by striking <quote>a
Federal Stafford</quote> and all that follows through <quote>section
428B</quote> and inserting <quote>a Federal Direct Stafford Loan under section
455(a)(2)(A), a Federal Direct Unsubsidized Stafford Loan under section
455(a)(2)(D), or a Federal Direct PLUS Loan under section
455(a)(2)(B)</quote>.</text>
</item></subclause></clause></subparagraph><subparagraph id="H2BB02B3C0A7741219A0A88677B960DDC"><enum>(B)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
subparagraph (A)(iii) shall be effective as if enacted as part of section
102(a)(1) of the Higher Education Opportunity Act, in accordance with section
102(e) of such Act, as amended by section 101(a)(2) of Public Law
111–39.</text>
</subparagraph></paragraph></subsection><subsection id="HFC847FB5447946979A07B5053D73AD20"><enum>(n)</enum><header>Agreements with
institutions</header><text display-inline="yes-display-inline">Section 454 (20
U.S.C. 1087d) is amended—</text>
<paragraph id="H23C98E106B1A4B53BA1D78B0257B2590"><enum>(1)</enum><text>in subsection (a),
by striking paragraph (4) and redesignating the succeeding paragraphs
accordingly; and</text>
</paragraph><paragraph id="HC1F47FF117D044B1877DCE032B6FDCF5"><enum>(2)</enum><text>in subsection
(b)(2), by striking <quote>(5), (6), and (7)</quote> and inserting <quote>(5),
and (6)</quote>.</text>
</paragraph></subsection><subsection id="H318C8D3E663342799FF30AC2463CEE82"><enum>(o)</enum><header>Terms and
conditions of loans</header>
<paragraph id="H684F069A7A464B4CB1D2B23F572A4916"><enum>(1)</enum><header>Amendments</header><text display-inline="yes-display-inline">Section 455 (20 U.S.C. 1087e) is
amended—</text>
<subparagraph id="HDD23E2CAE7894BD195A208C7BE1AECD3"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (a)(1), by inserting <quote>,
and first disbursed on June 30, 2010,</quote> before <quote>under sections
428</quote>; and</text>
</subparagraph><subparagraph commented="no" id="H4341A70B8036478FB73BDFF1D73FBA9D"><enum>(B)</enum><text>in subsection
(g)—</text>
<clause commented="no" id="H7FCB0C7C8679486688E58612A6A164A7"><enum>(i)</enum><text>by inserting
<quote>, including any loan made under part B and first disbursed before July
1, 2010</quote> after <quote>section 428C(a)(4)</quote>; and</text>
</clause><clause commented="no" id="HF31730D3009B4DAFA4168866071E18AA"><enum>(ii)</enum><text>by striking the
third sentence.</text>
</clause></subparagraph></paragraph><paragraph id="H40B5E5341FDF46238810ACFC9D694772"><enum>(2)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendment made by
<internal-xref idref="HDD23E2CAE7894BD195A208C7BE1AECD3" legis-path="213.(a)(1)">subsection (a)(1)</internal-xref> shall apply with
respect to loans first disbursed under part D of title IV of the Higher
Education Act of 1965 (20 U.S.C. 1087a et seq.) on or after July 1,
2010.</text>
</paragraph></subsection><subsection id="H76A3711B70E047DAA4092A85AD044C55"><enum>(p)</enum><header>Technical
assistance to institutions of higher education</header><text display-inline="yes-display-inline">Section 458(a) (20 U.S.C. 1087h(a)) is
amended—</text>
<paragraph commented="no" id="H4A5D568642D0470E845EBB951C01BFC9"><enum>(1)</enum><text>by redesignating
paragraph (5) as paragraph (6); and</text>
</paragraph><paragraph commented="no" id="H1F5BAD669A224A9E89DCDC2E00B0DAAA"><enum>(2)</enum><text>by inserting after
paragraph (4) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H4ABEC71549C04638857C77934A474220" style="OLC">
<paragraph commented="no" id="H5DF26B55072D45BABF8C57B695C71940"><enum>(5)</enum><header>Technical
assistance to institutions of higher education</header>
<subparagraph commented="no" id="HBFFA65A1AFD8448980905F1DF04EB844"><enum>(A)</enum><header>Provision of
assistance</header><text display-inline="yes-display-inline">The Secretary
shall provide institutions of higher education participating, or seeking to
participate, in the loan programs under this part with technical assistance in
establishing and administering such programs, including assistance for an
institution of higher education during such institution’s transition into such
programs. Such assistance may include technical support, training for
personnel, customized assistance to individual institutions of higher
education, development of informational materials, and other services the
Secretary determines to be appropriate.</text>
</subparagraph><subparagraph commented="no" id="HE6529712012E470B90541A86D3C6224E"><enum>(B)</enum><header>Funds</header><text display-inline="yes-display-inline">There are authorized to be appropriated,
and there are appropriated, to carry out this paragraph (in addition to any
other amounts appropriated to carry out this subparagraph and out of any money
in the Treasury not otherwise appropriated), $50,000,000 for fiscal year
2010.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HDFF3885215904D19A8FC4031BFC41673"><enum>(q)</enum><header>Outreach
Efforts</header>
<paragraph id="H2BCF906BD62F45B5AE256623B25CA006"><enum>(1)</enum><header>Outreach
activities required</header><text display-inline="yes-display-inline">The
Secretary of Education shall conduct outreach activities in accordance with
this section to inform and educate students and their families about the
transition to Federal Direct lending under the amendments made by this section
to title IV of the Higher Education Act of 1965.</text>
</paragraph><paragraph id="HCEBD8C31458D48839EA4358C31BFAE97"><enum>(2)</enum><header>Required
components of outreach</header><text>The Secretary shall provide for the broad
dissemination of information on such amendments and shall—</text>
<subparagraph id="H66EA678516BF4EE3BC6431FBF66A5AD6"><enum>(A)</enum><text>operate and
maintain an Internet website through which individuals may obtain information
on changes made to the Federal Family Education Loan programs and the Federal
Direct Loan programs;</text>
</subparagraph><subparagraph id="HA75C82C419654087B0831E2B37B19D0C"><enum>(B)</enum><text>develop and
disseminate information to high school seniors and their parents concerning
student loans and student aid;</text>
</subparagraph><subparagraph id="H8FFC254E391D47F2B1F3EB2E7909946E"><enum>(C)</enum><text display-inline="yes-display-inline">provide assistance to institutions of
higher education to educate students on the repayment of Federal Direct loans;
and</text>
</subparagraph><subparagraph id="H1129BB21A79C4323BD77AA0AF937A2EC"><enum>(D)</enum><text>ensure that all
outreach efforts are developed using plain language and are culturally- and
language-appropriate.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4F9069B17F054745B914CB321F5BD4B4"><enum>(3)</enum><header>Use of other
entities</header><text>In carrying out this subsection, the Secretary may work
with other appropriate entities to facilitate the dissemination of information
under this section and to provide assistance as described in this
section.</text>
</paragraph></subsection></section><section id="id18E0C247F7704BED811C906CE25DDE10"><enum>3003.</enum><header>Bringing down
prices for prescription drugs by permitting drug reimportation</header>
<subsection id="id1D9B52C05C114108818D878968BF6A85"><enum>(a)</enum><header>Short
title</header><text display-inline="yes-display-inline">This section may be
cited as the <quote><short-title>Pharmaceutical Market
Access and Drug Safety Act of 2009</short-title></quote>.</text>
</subsection><subsection id="ID230B31B779614C0C87FA6B4C37E1558B"><enum>(b)</enum><header>Findings</header><text display-inline="yes-display-inline">Congress finds that—</text>
<paragraph id="ID98A2C1C6485248E78275B5ED1CCC89A1"><enum>(1)</enum><text>Americans
unjustly pay up to 5 times more to fill their prescriptions than consumers in
other countries;</text>
</paragraph><paragraph id="ID1AFF2990C236420599F67B5394FD65DE"><enum>(2)</enum><text>the United States
is the largest market for pharmaceuticals in the world, yet American consumers
pay the highest prices for brand pharmaceuticals in the world;</text>
</paragraph><paragraph id="ID3440E3170FA0494FA492E42B8154A4CD"><enum>(3)</enum><text>a prescription
drug is neither safe nor effective to an individual who cannot afford
it;</text>
</paragraph><paragraph id="ID8F0173BEBB7A49C3B4F500FC547A3207"><enum>(4)</enum><text>allowing and
structuring the importation of prescription drugs to ensure access to safe and
affordable drugs approved by the Food and Drug Administration will provide a
level of safety to American consumers that they do not currently enjoy;</text>
</paragraph><paragraph id="IDF835BAB80174402DB5E5E6CCACA2D346"><enum>(5)</enum><text>American spend
more than $200,000,000,000 on prescription drugs every year;</text>
</paragraph><paragraph id="IDC7086A94D8044CB0B4C931B29FA0E1DA"><enum>(6)</enum><text>the Congressional
Budget Office has found that the cost of prescription drugs are between 35 to
55 percent less in other highly developed countries than in the United States;
and</text>
</paragraph><paragraph id="idFE3997FB94D14CFC8129F39B4A371421"><enum>(7)</enum><text>promoting
competitive market pricing would both contribute to health care savings and
allow greater access to therapy, improving health and saving lives.</text>
</paragraph></subsection><subsection id="ID51BD1EE543A14136BE750D073F24105F"><enum>(c)</enum><header>Repeal of
certain section regarding importation of prescription drugs</header><text display-inline="yes-display-inline">Chapter VIII of the
<act-name parsable-cite="FFDCA">Federal Food, Drug, and Cosmetic Act</act-name>
(21 U.S.C. 381 et seq.) is amended by striking section 804.</text>
</subsection><subsection id="ID8133A9E06F5443CCAFE1BB9FB1A21BCE"><enum>(d)</enum><header>Importation of
prescription drugs; waiver of certain import restrictions</header>
<paragraph id="ID20946A7BB45D43178EF677C97B78ABC0"><enum>(1)</enum><header>In
general</header><text>Chapter VIII of the <act-name parsable-cite="FFDCA">Federal Food, Drug, and Cosmetic Act</act-name> (21
U.S.C. 381 et seq.), as amended by section 3, is further amended by inserting
after section 803 the following:</text>
<quoted-block act-name="Federal Food, Drug, and Cosmetic Act" id="ID309446E36072489FB648C1EE5CC19866">
<section id="ID3FD2A6B5BDB642FD98D4C2002635E80F"><enum>804.</enum><header>Commercial and
personal importation of prescription drugs</header>
<subsection id="ID881B858AD51946A18FA7DDDA42DAEC50"><enum>(a)</enum><header>Importation of
prescription drugs</header>
<paragraph id="ID79355180348245FF997A0ADAAAF2DCCB"><enum>(1)</enum><header>In
general</header><text>In the case of qualifying drugs imported or offered for
import into the United States from registered exporters or by registered
importers—</text>
<subparagraph id="IDC201D8DC88CE41BABDDC906CA8F36A92"><enum>(A)</enum><text>the limitation on
importation that is established in section 801(d)(1) is waived; and</text>
</subparagraph><subparagraph id="IDB6C0EBC0397C4665B230C989F169CD6E"><enum>(B)</enum><text>the standards
referred to in section 801(a) regarding admission of the drugs are subject to
subsection (g) of this section (including with respect to qualifying drugs to
which section 801(d)(1) does not apply).</text>
</subparagraph></paragraph><paragraph id="IDE7FF5EBAE04B450D83C6AAC5D058F925"><enum>(2)</enum><header>Importers</header><text>A
qualifying drug may not be imported under paragraph (1) unless—</text>
<subparagraph id="IDB171D5E38B824ED1B982F78FDE2EF019"><enum>(A)</enum><text>the drug is
imported by a pharmacy, group of pharmacies, or a wholesaler that is a
registered importer; or</text>
</subparagraph><subparagraph id="IDDABAFD006C5F4016AC6D83830A5DAFCC"><enum>(B)</enum><text>the drug is
imported by an individual for personal use or for the use of a family member of
the individual (not for resale) from a registered exporter.</text>
</subparagraph></paragraph><paragraph id="ID8FEFA46C12D84EE4B9105B11395450D3"><enum>(3)</enum><header>Rule of
construction</header><text>This section shall apply only with respect to a drug
that is imported or offered for import into the United States—</text>
<subparagraph id="IDACB94C3FF50E42749162AF5AE1F7877E"><enum>(A)</enum><text>by a registered
importer; or</text>
</subparagraph><subparagraph id="IDB4E2AC45F61A49D09D50802A85BF2797"><enum>(B)</enum><text>from a registered
exporter to an individual.</text>
</subparagraph></paragraph><paragraph id="IDB0D6A53632F548909272F3B665C4FEEC"><enum>(4)</enum><header>Definitions</header>
<subparagraph id="ID858201A51B1940FB9543C57C62EE412C"><enum>(A)</enum><header>Registered
exporter; registered importer</header><text>For purposes of this
section:</text>
<clause id="ID893DEFD0FE234312A242D19241F14171"><enum>(i)</enum><text>The term
<term>registered exporter</term> means an exporter for which a registration
under subsection (b) has been approved and is in effect.</text>
</clause><clause id="ID2C1E3E4A012E4FABB6FAA83D437CB37B"><enum>(ii)</enum><text>The term
<term>registered importer</term> means a pharmacy, group of pharmacies, or a
wholesaler for which a registration under subsection (b) has been approved and
is in effect.</text>
</clause><clause id="IDBEE4424B2C0D4989A2CD205BBE2EE90A"><enum>(iii)</enum><text>The term
<term>registration condition</term> means a condition that must exist for a
registration under subsection (b) to be approved.</text>
</clause></subparagraph><subparagraph id="ID9E8DE32A1BD544C4B52F4417DD627E32"><enum>(B)</enum><header>Qualifying
drug</header><text>For purposes of this section, the term <term>qualifying
drug</term> means a drug for which there is a corresponding U.S. label
drug.</text>
</subparagraph><subparagraph id="ID19E2E6CF2E1648F18EECCBD053AFE28A"><enum>(C)</enum><header>U.S. label
drug</header><text>For purposes of this section, the term <term>U.S. label
drug</term> means a prescription drug that—</text>
<clause id="IDC7E130E398BD43EFA083105102B6A177"><enum>(i)</enum><text>with respect to a
qualifying drug, has the same active ingredient or ingredients, route of
administration, dosage form, and strength as the qualifying drug;</text>
</clause><clause id="IDE1F3C7ECAB994644A969002A45AA8877"><enum>(ii)</enum><text>with respect to
the qualifying drug, is manufactured by or for the person that manufactures the
qualifying drug;</text>
</clause><clause id="IDE49CE5A8E2F7486D9ECECAFE42EC31AA"><enum>(iii)</enum><text>is approved
under section 505(c); and</text>
</clause><clause id="ID258F11149F5244D1B5FA9DFA4C34F5B8"><enum>(iv)</enum><text>is not—</text>
<subclause id="ID03CCC564E88445A28D12F22D65993568"><enum>(I)</enum><text>a controlled
substance, as defined in section 102 of the <act-name parsable-cite="CSA">Controlled Substances Act</act-name> (21 U.S.C.
802);</text>
</subclause><subclause id="ID2DDA6860F8154EB9B6B66D8944998AFE"><enum>(II)</enum><text>a biological
product, as defined in section 351 of the <act-name parsable-cite="PHSA">Public
Health Service Act</act-name> (42 U.S.C. 262), including—</text>
<item id="IDBF8519AC331A402ABA18A4010512C031"><enum>(aa)</enum><text>a
therapeutic DNA plasmid product;</text>
</item><item id="ID8FE24C2EC46B4E58B26D41EF0DFA21DC"><enum>(bb)</enum><text>a
therapeutic synthetic peptide product;</text>
</item><item id="IDA0809459B3354C83B6540B66C4693365"><enum>(cc)</enum><text>a
monoclonal antibody product for in vivo use; and</text>
</item><item id="ID3FCBEA59C8EF4025A17CB647562250AB"><enum>(dd)</enum><text>a
therapeutic recombinant DNA-derived product;</text>
</item></subclause><subclause id="IDD3C30CC6C6EF450A87C33542399907F6"><enum>(III)</enum><text>an infused
drug, including a peritoneal dialysis solution;</text>
</subclause><subclause id="ID36B689FDB35846A0BD5D91E33E3A78C7"><enum>(IV)</enum><text>an injected
drug;</text>
</subclause><subclause id="IDEE29E53ED700470BAD541DCE361FFF20"><enum>(V)</enum><text>a drug that is
inhaled during surgery;</text>
</subclause><subclause id="ID2DD2A9AD9DAA4E6FBCB1B6F5E6684EE2"><enum>(VI)</enum><text>a drug that is
the listed drug referred to in 2 or more abbreviated new drug applications
under which the drug is commercially marketed; or</text>
</subclause><subclause id="idCB357FDBD66A4607922168DB1DAC61BB"><enum>(VII)</enum><text>a sterile
opthlamic drug intended for topical use on or in the eye.</text>
</subclause></clause></subparagraph><subparagraph id="ID19731B1FAC1C472B8E1F0E9CD93F0E53"><enum>(D)</enum><header>Other
definitions</header><text>For purposes of this section:</text>
<clause id="ID58FBEB9356E54A3894E061C6A87AD1B5"><enum>(i)</enum><subclause commented="no" display-inline="yes-display-inline" id="ID85059805A6334E6FB6D9D3BB54DCF45C"><enum>(I)</enum><text>The term
<term>exporter</term> means a person that is in the business of exporting a
drug to individuals in the United States from Canada or from a permitted
country designated by the Secretary under subclause (II), or that, pursuant to
submitting a registration under subsection (b), seeks to be in such
business.</text>
</subclause><subclause id="IDE0BF09E14C6F4F8B8FC21638D1E0990C" indent="up1"><enum>(II)</enum><text>The Secretary shall designate a
permitted country under subparagraph (E) (other than Canada) as a country from
which an exporter may export a drug to individuals in the United States if the
Secretary determines that—</text>
<item id="ID90D6740774184214BDBC5FF7E2152987"><enum>(aa)</enum><text>the country has statutory or
regulatory standards that are equivalent to the standards in the United States
and Canada with respect to—</text>
<subitem id="ID0C2562905BF94D4EB570440FCBD6A7BC"><enum>(AA)</enum><text>the training of pharmacists;</text>
</subitem><subitem id="ID15096425D14048FE8B214A2A8821B2B0"><enum>(BB)</enum><text>the practice of pharmacy; and</text>
</subitem><subitem id="IDCA8F0730F95D4960ACDD68C07960D215"><enum>(CC)</enum><text>the protection of the privacy of personal
medical information; and</text>
</subitem></item><item id="id7C952F05D9DA4D82990E06D5430BD917"><enum>(bb)</enum><text>the importation of drugs to
individuals in the United States from the country will not adversely affect
public health.</text>
</item></subclause></clause><clause id="idDDD2E1CFD8984DB2B9013BABF198B681"><enum>(ii)</enum><text>The term
<term>importer</term> means a pharmacy, a group of pharmacies, or a wholesaler
that is in the business of importing a drug into the United States or that,
pursuant to submitting a registration under subsection (b), seeks to be in such
business.</text>
</clause><clause id="idEB20E2D62E3E4AFFAC0B10D2D9FE8213"><enum>(iii)</enum><text>The term
<term>pharmacist</term> means a person licensed by a State to practice
pharmacy, including the dispensing and selling of prescription drugs.</text>
</clause><clause id="idDFFF8CCEF4F64891AF80BE2030F1BCB3"><enum>(iv)</enum><text>The term
<term>pharmacy</term> means a person that—</text>
<subclause id="ID5B5ECB5D375045159EAFEF080AAEF446"><enum>(I)</enum><text>is licensed by a
State to engage in the business of selling prescription drugs at retail;
and</text>
</subclause><subclause id="ID88C41EDDE52C43BAA27D297D45A9DA70"><enum>(II)</enum><text>employs 1 or
more pharmacists.</text>
</subclause></clause><clause id="IDF6FB45F3D5084737B69DF30874263E7B"><enum>(v)</enum><text>The term
<term>prescription drug</term> means a drug that is described in section
503(b)(1).</text>
</clause><clause id="IDB4431F3A5F61490E9EEB2B9FAAD459BC"><enum>(vi)</enum><text>The term
<term>wholesaler</term>—</text>
<subclause id="ID97F59B8634664470940F8BA83645B94A"><enum>(I)</enum><text>means a person
licensed as a wholesaler or distributor of prescription drugs in the United
States under section 503(e)(2)(A); and</text>
</subclause><subclause id="ID4CC355F268AE43A5875F18D0DAC00620"><enum>(II)</enum><text>does not include
a person authorized to import drugs under section 801(d)(1).</text>
</subclause></clause></subparagraph><subparagraph id="IDA767207BBAF14864AC6A2BA6317FFE7D"><enum>(E)</enum><header>Permitted
country</header><text>The term <term>permitted country</term> means—</text>
<clause id="ID36914DEB996440E592DCD08ECC6714B6"><enum>(i)</enum><text>Australia;</text>
</clause><clause id="ID469D2E7463EF4228A58AF0BF93ADC145"><enum>(ii)</enum><text>Canada;</text>
</clause><clause id="IDD4223DE21C9B4C1E9D4E601AEBCC460E"><enum>(iii)</enum><text>a member
country of the European Union, but does not include a member country with
respect to which—</text>
<subclause id="ID278D2B43EC4A4CABB2665855CF2BFD99"><enum>(I)</enum><text>the country’s
Annex to the Treaty of Accession to the European Union 2003 includes a
transitional measure for the regulation of human pharmaceutical products that
has not expired; or</text>
</subclause><subclause id="ID46726B3412854D07AA53BA634E75A35E"><enum>(II)</enum><text>the Secretary
determines that the requirements described in subclauses (I) and (II) of clause
(vii) will not be met by the date on which such transitional measure for the
regulation of human pharmaceutical products expires;</text>
</subclause></clause><clause id="ID2617C267A37844EE94D773E78AB46024"><enum>(iv)</enum><text>Japan;</text>
</clause><clause id="ID452CBD3E84CB4E00836625CF133350B5"><enum>(v)</enum><text>New
Zealand;</text>
</clause><clause id="ID283CD2B337B44EE7BA727A6B7ED95491"><enum>(vi)</enum><text>Switzerland;
and</text>
</clause><clause id="ID56B4E8FF030C4848A2E292642AF1A8D4"><enum>(vii)</enum><text>a country in
which the Secretary determines the following requirements are met:</text>
<subclause id="ID3A831FEFE0A2470588B4DAF9D55B0C6C"><enum>(I)</enum><text>The country has
statutory or regulatory requirements—</text>
<item id="ID476B2151E0024D459B9A2360B9BCB106"><enum>(aa)</enum><text>that require the
review of drugs for safety and effectiveness by an entity of the government of
the country;</text>
</item><item id="ID748B820DD70B4EB1AEDCCBC9E7BBF958"><enum>(bb)</enum><text>that authorize
the approval of only those drugs that have been determined to be safe and
effective by experts employed by or acting on behalf of such entity and
qualified by scientific training and experience to evaluate the safety and
effectiveness of drugs on the basis of adequate and well-controlled
investigations, including clinical investigations, conducted by experts
qualified by scientific training and experience to evaluate the safety and
effectiveness of drugs;</text>
</item><item id="ID68A7635E565D4A95AFC488DCEF9A49CD"><enum>(cc)</enum><text>that require the
methods used in, and the facilities and controls used for the manufacture,
processing, and packing of drugs in the country to be adequate to preserve
their identity, quality, purity, and strength;</text>
</item><item id="ID846EE50A422D4E03921244C24E22F56E"><enum>(dd)</enum><text>for the
reporting of adverse reactions to drugs and procedures to withdraw approval and
remove drugs found not to be safe or effective; and</text>
</item><item id="ID914D438D8A824277B0F39033A9B05716"><enum>(ee)</enum><text>that require the
labeling and promotion of drugs to be in accordance with the approval of the
drug.</text>
</item></subclause><subclause id="ID2791C3E748EE4BF1A04B4F823BE62C76"><enum>(II)</enum><text>The valid
marketing authorization system in the country is equivalent to the systems in
the countries described in clauses (i) through (vi).</text>
</subclause><subclause id="ID988031F9794C4352889BFD74149942F9"><enum>(III)</enum><text>The importation
of drugs to the United States from the country will not adversely affect public
health.</text>
</subclause></clause></subparagraph></paragraph></subsection><subsection id="IDDEED9BE8E20140078F866A04713D9A57"><enum>(b)</enum><header>Registration of
importers and exporters</header>
<paragraph id="IDC2995010890549E086E503D8116DA8AD"><enum>(1)</enum><header>Registration of
importers and exporters</header><text>A registration condition is that the
importer or exporter involved (referred to in this subsection as a
<term>registrant</term>) submits to the Secretary a registration containing the
following:</text>
<subparagraph id="IDDF41F9429FAC4A8C99105B436B67C85D"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="ID8A269BBDB6F8479B886F346C702DE66C"><enum>(i)</enum><text>In the case of an
exporter, the name of the exporter and an identification of all places of
business of the exporter that relate to qualifying drugs, including each
warehouse or other facility owned or controlled by, or operated for, the
exporter.</text>
</clause><clause id="ID5178FCC4E93143F3B0E5362E52CDEC19" indent="up1"><enum>(ii)</enum><text>In the case of an importer, the
name of the importer and an identification of the places of business of the
importer at which the importer initially receives a qualifying drug after
importation (which shall not exceed 3 places of business except by permission
of the Secretary).</text>
</clause></subparagraph><subparagraph id="ID5304B4F2E8ED4A7BA0C61D1C399254E2"><enum>(B)</enum><text>Such information
as the Secretary determines to be necessary to demonstrate that the registrant
is in compliance with registration conditions under—</text>
<clause id="ID0BF216B083474C4A90F4E23E8FA6ACE3"><enum>(i)</enum><text>in the case of an
importer, subsections (c), (d), (e), (g), and (j) (relating to the sources of
imported qualifying drugs; the inspection of facilities of the importer; the
payment of fees; compliance with the standards referred to in section 801(a);
and maintenance of records and samples); or</text>
</clause><clause id="ID0998A6B72DF44978A1A8B64CFFAE3623"><enum>(ii)</enum><text>in the case of
an exporter, subsections (c), (d), (f), (g), (h), (i), and (j) (relating to the
sources of exported qualifying drugs; the inspection of facilities of the
exporter and the marking of compliant shipments; the payment of fees; and
compliance with the standards referred to in section 801(a); being licensed as
a pharmacist; conditions for individual importation; and maintenance of records
and samples).</text>
</clause></subparagraph><subparagraph id="IDB1A1FE3B9BCF41C990080F4FC00EFF9C"><enum>(C)</enum><text>An agreement by
the registrant that the registrant will not under subsection (a) import or
export any drug that is not a qualifying drug.</text>
</subparagraph><subparagraph id="ID3188DBFFCF1B4B28A5D7A2778761549F"><enum>(D)</enum><text>An agreement by
the registrant to—</text>
<clause id="ID8938E3D2FB594796B1B45719CB68B5BB"><enum>(i)</enum><text>notify the
Secretary of a recall or withdrawal of a qualifying drug distributed in a
permitted country that the registrant has exported or imported, or intends to
export or import, to the United States under subsection (a);</text>
</clause><clause id="ID79FEA187A24C4237B099A43D2B31179C"><enum>(ii)</enum><text>provide for the
return to the registrant of such drug; and</text>
</clause><clause id="ID97A936DAC33E4374892B064B334D7C2E"><enum>(iii)</enum><text>cease, or not
begin, the exportation or importation of such drug unless the Secretary has
notified the registrant that exportation or importation of such drug may
proceed.</text>
</clause></subparagraph><subparagraph id="IDDAC4E39836B34DBA9661F94B05D1D4FB"><enum>(E)</enum><text>An agreement by
the registrant to ensure and monitor compliance with each registration
condition, to promptly correct any noncompliance with such a condition, and to
promptly report to the Secretary any such noncompliance.</text>
</subparagraph><subparagraph id="ID780BF82E848449D1B27BF4FE9AC4D93B"><enum>(F)</enum><text>A plan describing
the manner in which the registrant will comply with the agreement under
subparagraph (E).</text>
</subparagraph><subparagraph id="IDF17C8E97D67948D1989B55052A6AE268"><enum>(G)</enum><text>An agreement by
the registrant to enforce a contract under subsection (c)(3)(B) against a party
in the chain of custody of a qualifying drug with respect to the authority of
the Secretary under clauses (ii) and (iii) of that subsection.</text>
</subparagraph><subparagraph id="ID7FAED45267FF4A679945B39799BB29A0"><enum>(H)</enum><text>An agreement by
the registrant to notify the Secretary not more than 30 days before the
registrant intends to make the change, of—</text>
<clause id="ID1B696A92BABC4B8FBF59185423F553A7"><enum>(i)</enum><text>any change that
the registrant intends to make regarding information provided under
subparagraph (A) or (B); and</text>
</clause><clause id="ID4C77072B161E4773902346EAB5333AC4"><enum>(ii)</enum><text>any change that
the registrant intends to make in the compliance plan under subparagraph
(F).</text>
</clause></subparagraph><subparagraph id="ID664394E29D204B6185509F06ED7B465E"><enum>(I)</enum><text>In the case of an
exporter:</text>
<clause id="ID1EE881BEB8C94C62AF493CAC50E95644"><enum>(i)</enum><text>An agreement by
the exporter that a qualifying drug will not under subsection (a) be exported
to any individual not authorized pursuant to subsection (a)(2)(B) to be an
importer of such drug.</text>
</clause><clause id="ID82C7B36BECEC4E91B7FDC0BE4B29F41F"><enum>(ii)</enum><text>An agreement to
post a bond, payable to the Treasury of the United States that is equal in
value to the lesser of—</text>
<subclause id="ID48BCD6945A0A4BE9AB943634F99B7F32"><enum>(I)</enum><text>the value of
drugs exported by the exporter to the United States in a typical 4-week period
over the course of a year under this section; or</text>
</subclause><subclause id="ID8F3625274D9A45C09FEF8158F6325E9D"><enum>(II)</enum><text>$1,000,000.</text>
</subclause></clause><clause id="ID57273DE8CF7043688D569DD34F0C9803"><enum>(iii)</enum><text>An agreement by
the exporter to comply with applicable provisions of Canadian law, or the law
of the permitted country designated under subsection (a)(4)(D)(i)(II) in which
the exporter is located, that protect the privacy of personal information with
respect to each individual importing a prescription drug from the exporter
under subsection (a)(2)(B).</text>
</clause><clause id="ID79D5B6C14503443E955D8B21BD53C1EB"><enum>(iv)</enum><text>An agreement by
the exporter to report to the Secretary—</text>
<subclause id="ID9B2FB5A3F8C144709D4AA288B25421DE"><enum>(I)</enum><text>not later than
August 1 of each fiscal year, the total price and the total volume of drugs
exported to the United States by the exporter during the 6-month period from
January 1 through June 30 of that year; and</text>
</subclause><subclause id="IDC32F6C9EED8F47A1A9F088AFEEA3403F"><enum>(II)</enum><text>not later than
January 1 of each fiscal year, the total price and the total volume of drugs
exported to the United States by the exporter during the previous fiscal
year.</text>
</subclause></clause></subparagraph><subparagraph id="ID3F674C3A45D14668BE79226B21B51FB5"><enum>(J)</enum><text>In the case of an
importer, an agreement by the importer to report to the Secretary—</text>
<clause id="IDA3B7FA1526E741A5B9280384A7229D97"><enum>(i)</enum><text>not later than
August 1 of each fiscal year, the total price and the total volume of drugs
imported to the United States by the importer during the 6-month period from
January 1 through June 30 of that fiscal year; and</text>
</clause><clause id="ID5BBB67BC1F624033875061031DE3D65F"><enum>(ii)</enum><text>not later than
January 1 of each fiscal year, the total price and the total volume of drugs
imported to the United States by the importer during the previous fiscal
year.</text>
</clause></subparagraph><subparagraph id="ID7EF9203B5CF7404E98EBAD41ABC21FC4"><enum>(K)</enum><text>Such other
provisions as the Secretary may require by regulation to protect the public
health while permitting—</text>
<clause id="ID3B4A88668C114EB382B910F5FD7164C0"><enum>(i)</enum><text>the importation
by pharmacies, groups of pharmacies, and wholesalers as registered importers of
qualifying drugs under subsection (a); and</text>
</clause><clause id="IDFA7DD09767A94485AD8C6B38EB38A8F7"><enum>(ii)</enum><text>importation by
individuals of qualifying drugs under subsection (a).</text>
</clause></subparagraph></paragraph><paragraph id="IDAE8BE023AEC1420A9401D6CDBB56F12F"><enum>(2)</enum><header>Approval or
disapproval of registration</header>
<subparagraph id="ID393F8774EEDD42BF936B86CAD0D71B50"><enum>(A)</enum><header>In
general</header><text>Not later than 90 days after the date on which a
registrant submits to the Secretary a registration under paragraph (1), the
Secretary shall notify the registrant whether the registration is approved or
is disapproved. The Secretary shall disapprove a registration if there is
reason to believe that the registrant is not in compliance with one or more
registration conditions, and shall notify the registrant of such reason. In the
case of a disapproved registration, the Secretary shall subsequently notify the
registrant that the registration is approved if the Secretary determines that
the registrant is in compliance with such conditions.</text>
</subparagraph><subparagraph id="ID326804DD032240B8B9A16840897C2873"><enum>(B)</enum><header>Changes in
registration information</header><text>Not later than 30 days after receiving a
notice under paragraph (1)(H) from a registrant, the Secretary shall determine
whether the change involved affects the approval of the registration of the
registrant under paragraph (1), and shall inform the registrant of the
determination.</text>
</subparagraph></paragraph><paragraph id="IDED5E554523074F40B269D804C9520E86"><enum>(3)</enum><header>Publication of
contact information for registered exporters</header><text>Through the Internet
website of the Food and Drug Administration and a toll-free telephone number,
the Secretary shall make readily available to the public a list of registered
exporters, including contact information for the exporters. Promptly after the
approval of a registration submitted under paragraph (1), the Secretary shall
update the Internet website and the information provided through the toll-free
telephone number accordingly.</text>
</paragraph><paragraph id="ID46FC7FD831534D28A1CBD1EA9388227F"><enum>(4)</enum><header>Suspension and
termination</header>
<subparagraph id="IDDA4A4389CD6C4D98A83710B495C07DB8"><enum>(A)</enum><header>Suspension</header><text>With
respect to the effectiveness of a registration submitted under paragraph
(1):</text>
<clause id="IDA9E1DC8DEF6440F8893A348D6C601E7F"><enum>(i)</enum><text>Subject to clause
(ii), the Secretary may suspend the registration if the Secretary determines,
after notice and opportunity for a hearing, that the registrant has failed to
maintain substantial compliance with a registration condition.</text>
</clause><clause id="ID8CA2EC99450E4602A4471098C833B515"><enum>(ii)</enum><text>If the Secretary
determines that, under color of the registration, the exporter has exported a
drug or the importer has imported a drug that is not a qualifying drug, or a
drug that does not comply with subsection (g)(2)(A) or (g)(4), or has exported
a qualifying drug to an individual in violation of subsection (i)(2)(F), the
Secretary shall immediately suspend the registration. A suspension under the
preceding sentence is not subject to the provision by the Secretary of prior
notice, and the Secretary shall provide to the registrant an opportunity for a
hearing not later than 10 days after the date on which the registration is
suspended.</text>
</clause><clause id="ID926BC44A62D04EF5BD65752A15F75299"><enum>(iii)</enum><text>The Secretary
may reinstate the registration, whether suspended under clause (i) or (ii), if
the Secretary determines that the registrant has demonstrated that further
violations of registration conditions will not occur.</text>
</clause></subparagraph><subparagraph id="ID7723CD07D71742F59649585BB6384996"><enum>(B)</enum><header>Termination</header><text>The
Secretary, after notice and opportunity for a hearing, may terminate the
registration under paragraph (1) of a registrant if the Secretary determines
that the registrant has engaged in a pattern or practice of violating 1 or more
registration conditions, or if on 1 or more occasions the Secretary has under
subparagraph (A)(ii) suspended the registration of the registrant. The
Secretary may make the termination permanent, or for a fixed period of not less
than 1 year. During the period in which the registration is terminated, any
registration submitted under paragraph (1) by the registrant, or a person that
is a partner in the export or import enterprise, or a principal officer in such
enterprise, and any registration prepared with the assistance of the registrant
or such a person, has no legal effect under this section.</text>
</subparagraph></paragraph><paragraph id="IDAA16FA5685AC4C13B3BC290F3A2D3106"><enum>(5)</enum><header>Default of
bond</header><text>A bond required to be posted by an exporter under paragraph
(1)(I)(ii) shall be defaulted and paid to the Treasury of the United States if,
after opportunity for an informal hearing, the Secretary determines that the
exporter has—</text>
<subparagraph id="IDC0C32B5FCD9B4623AE5B16B62DCA44DC"><enum>(A)</enum><text>exported a drug
to the United States that is not a qualifying drug or that is not in compliance
with subsection (g)(2)(A), (g)(4), or (i); or</text>
</subparagraph><subparagraph id="ID4C8556A7786247EF9A07DE0B6037B3C3"><enum>(B)</enum><text>failed to permit
the Secretary to conduct an inspection described under subsection (d).</text>
</subparagraph></paragraph></subsection><subsection id="ID956F61D10A294AB3943116675721DB60"><enum>(c)</enum><header>Sources of
qualifying drugs</header><text>A registration condition is that the exporter or
importer involved agrees that a qualifying drug will under subsection (a) be
exported or imported into the United States only if there is compliance with
the following:</text>
<paragraph id="IDB1B2DC24547B4D4DAEC8DE4A8C665D1F"><enum>(1)</enum><text>The drug was
manufactured in an establishment—</text>
<subparagraph id="IDC9FD4BBBB32040DF919C7207E6D7DFC4"><enum>(A)</enum><text>required to
register under subsection (h) or (i) of section 510; and</text>
</subparagraph><subparagraph id="IDDBD1B68C534E47999F456FF8D02F9380"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="ID5FC497A0BFFC4AF99049A6424A35E994"><enum>(i)</enum><text>inspected by the
Secretary; or</text>
</clause><clause id="IDA6E95B6F9B254C3E9BD79BB1202CD4AA" indent="up1"><enum>(ii)</enum><text>for which the Secretary has
elected to rely on a satisfactory report of a good manufacturing practice
inspection of the establishment from a permitted country whose regulatory
system the Secretary recognizes as equivalent under a mutual recognition
agreement, as provided for under section 510(i)(3), section 803, or part 26 of
title 21, Code of Federal Regulations (or any corresponding successor rule or
regulation).</text>
</clause></subparagraph></paragraph><paragraph id="ID359D01319E334C1598CA68175A69B767"><enum>(2)</enum><text>The establishment
is located in any country, and the establishment manufactured the drug for
distribution in the United States or for distribution in 1 or more of the
permitted countries (without regard to whether in addition the drug is
manufactured for distribution in a foreign country that is not a permitted
country).</text>
</paragraph><paragraph id="ID6779AC11BA7949168F6C6E547FC56659"><enum>(3)</enum><text>The exporter or
importer obtained the drug—</text>
<subparagraph id="ID11900CF89A174368A92F9BEA3F94E0D1"><enum>(A)</enum><text>directly from the
establishment; or</text>
</subparagraph><subparagraph id="ID85A42D4FB09A452881CD2055067A8056"><enum>(B)</enum><text>directly from an
entity that, by contract with the exporter or importer—</text>
<clause id="ID05E86D1DEFEB4595A1EBA074937F4E02"><enum>(i)</enum><text>provides to the
exporter or importer a statement (in such form and containing such information
as the Secretary may require) that, for the chain of custody from the
establishment, identifies each prior sale, purchase, or trade of the drug
(including the date of the transaction and the names and addresses of all
parties to the transaction);</text>
</clause><clause id="ID9543F1BC415D4FD9828886D983B731FE"><enum>(ii)</enum><text>agrees to permit
the Secretary to inspect such statements and related records to determine their
accuracy;</text>
</clause><clause id="ID499A8323C8684DD095CF457CDBB03DDA"><enum>(iii)</enum><text>agrees, with
respect to the qualifying drugs involved, to permit the Secretary to inspect
warehouses and other facilities, including records, of the entity for purposes
of determining whether the facilities are in compliance with any standards
under this Act that are applicable to facilities of that type in the United
States; and</text>
</clause><clause id="ID56D56EC07D6149889A9BC5060195FA11"><enum>(iv)</enum><text>has ensured,
through such contractual relationships as may be necessary, that the Secretary
has the same authority regarding other parties in the chain of custody from the
establishment that the Secretary has under clauses (ii) and (iii) regarding
such entity.</text>
</clause></subparagraph></paragraph><paragraph id="ID92E6B7F1F69C441998550637C6A72DCC"><enum>(4)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="ID084B45D9C7BD43F886A02EEB7673D087"><enum>(A)</enum><text>The foreign country
from which the importer will import the drug is a permitted country; or</text>
</subparagraph><subparagraph id="ID5AB77E01B492496798325CD141F691A9" indent="up1"><enum>(B)</enum><text>The foreign country from which the
exporter will export the drug is the permitted country in which the exporter is
located.</text>
</subparagraph></paragraph><paragraph id="ID84CC9F3E6A6C4A2CBB111A102DE10D86"><enum>(5)</enum><text>During any period
in which the drug was not in the control of the manufacturer of the drug, the
drug did not enter any country that is not a permitted country.</text>
</paragraph><paragraph id="ID33938E414EE24CB6B8E644182CDF1D26"><enum>(6)</enum><text>The exporter or
importer retains a sample of each lot of the drug for testing by the
Secretary.</text>
</paragraph></subsection><subsection id="ID4B7E17B2EE59434EB0302AC25D9FB270"><enum>(d)</enum><header>Inspection of
facilities; marking of shipments</header>
<paragraph id="ID25C16B841C4543E7983087865895A09F"><enum>(1)</enum><header>Inspection of
facilities</header><text>A registration condition is that, for the purpose of
assisting the Secretary in determining whether the exporter involved is in
compliance with all other registration conditions—</text>
<subparagraph id="ID1D255406840D46AC8DD8AFC76263C398"><enum>(A)</enum><text>the exporter
agrees to permit the Secretary—</text>
<clause id="IDBA700837CFCF43D4AFB902F3751B12A2"><enum>(i)</enum><text>to conduct onsite
inspections, including monitoring on a day-to-day basis, of places of business
of the exporter that relate to qualifying drugs, including each warehouse or
other facility owned or controlled by, or operated for, the exporter;</text>
</clause><clause id="ID2DA7EE1F2E6941E8A7928D506CDB2BAD"><enum>(ii)</enum><text>to have access,
including on a day-to-day basis, to—</text>
<subclause id="ID4FAD5410EBCB4EE1BE9B3A1F543AD9DC"><enum>(I)</enum><text>records of the
exporter that relate to the export of such drugs, including financial records;
and</text>
</subclause><subclause id="ID3A4D764FDFAA4DBA8271696FFE510AB0"><enum>(II)</enum><text>samples of such
drugs;</text>
</subclause></clause><clause id="IDA9DCB9ECD8B04C67BC0197F84B874BA7"><enum>(iii)</enum><text>to carry out
the duties described in paragraph (3); and</text>
</clause><clause id="IDC6C852BF6D1745A1805D77183B4E9378"><enum>(iv)</enum><text>to carry out any
other functions determined by the Secretary to be necessary regarding the
compliance of the exporter; and</text>
</clause></subparagraph><subparagraph id="IDF92FC68A13F14C32A81B1E54509B9E7A"><enum>(B)</enum><text>the Secretary has
assigned 1 or more employees of the Secretary to carry out the functions
described in this subsection for the Secretary randomly, but not less than 12
times annually, on the premises of places of businesses referred to in
subparagraph (A)(i), and such an assignment remains in effect on a continuous
basis.</text>
</subparagraph></paragraph><paragraph id="ID6F644BF664D14E41B84436E3621BC361"><enum>(2)</enum><header>Marking of
compliant shipments</header><text>A registration condition is that the exporter
involved agrees to affix to each shipping container of qualifying drugs
exported under subsection (a) such markings as the Secretary determines to be
necessary to identify the shipment as being in compliance with all registration
conditions. Markings under the preceding sentence shall—</text>
<subparagraph id="ID6507BF0DF3B24F148266628270CF1617"><enum>(A)</enum><text>be designed to
prevent affixation of the markings to any shipping container that is not
authorized to bear the markings; and</text>
</subparagraph><subparagraph id="ID64D32AD92EA3404F8BBA4C1E44C025BD"><enum>(B)</enum><text>include
anticounterfeiting or track-and-trace technologies, taking into account the
economic and technical feasibility of those technologies.</text>
</subparagraph></paragraph><paragraph id="ID6E8E77BFDEB34381A209540B7592F3B1"><enum>(3)</enum><header>Certain duties
relating to exporters</header><text>Duties of the Secretary with respect to an
exporter include the following:</text>
<subparagraph id="ID6B85CAB01E9548C5A4138B9C1D9D4F84"><enum>(A)</enum><text>Inspecting,
randomly, but not less than 12 times annually, the places of business of the
exporter at which qualifying drugs are stored and from which qualifying drugs
are shipped.</text>
</subparagraph><subparagraph id="ID7210C98EB7DF47DB93E6DE6F3D629B94"><enum>(B)</enum><text>During the
inspections under subparagraph (A), verifying the chain of custody of a
statistically significant sample of qualifying drugs from the establishment in
which the drug was manufactured to the exporter, which shall be accomplished or
supplemented by the use of anticounterfeiting or track-and-trace technologies,
taking into account the economic and technical feasibility of those
technologies, except that a drug that lacks such technologies from the point of
manufacture shall not for that reason be excluded from importation by an
exporter.</text>
</subparagraph><subparagraph id="IDD86636B3486A43DBB9EF6003CF92EA2C"><enum>(C)</enum><text>Randomly
reviewing records of exports to individuals for the purpose of determining
whether the drugs are being imported by the individuals in accordance with the
conditions under subsection (i). Such reviews shall be conducted in a manner
that will result in a statistically significant determination of compliance
with all such conditions.</text>
</subparagraph><subparagraph id="ID539FE8C7CD3144F7BDAADA16A8F82EEC"><enum>(D)</enum><text>Monitoring the
affixing of markings under paragraph (2).</text>
</subparagraph><subparagraph id="ID593E5BE0ECBB4F4DA87BC46BB5CF1472"><enum>(E)</enum><text>Inspecting as the
Secretary determines is necessary the warehouses and other facilities,
including records, of other parties in the chain of custody of qualifying
drugs.</text>
</subparagraph><subparagraph id="ID8D6DE468E81748CBAE2FC53BDC3749E2"><enum>(F)</enum><text>Determining
whether the exporter is in compliance with all other registration
conditions.</text>
</subparagraph></paragraph><paragraph id="ID7705EBCBFAB9467D90F9CD7BEB9BEFE8"><enum>(4)</enum><header>Prior notice of
shipments</header><text>A registration condition is that, not less than 8 hours
and not more than 5 days in advance of the time of the importation of a
shipment of qualifying drugs, the importer involved agrees to submit to the
Secretary a notice with respect to the shipment of drugs to be imported or
offered for import into the United States under subsection (a). A notice under
the preceding sentence shall include—</text>
<subparagraph id="ID0A78C13F47844F278CA371696A788190"><enum>(A)</enum><text>the name and
complete contact information of the person submitting the notice;</text>
</subparagraph><subparagraph id="ID0C0D2052B47542AF9F3C6AC0CA287D93"><enum>(B)</enum><text>the name and
complete contact information of the importer involved;</text>
</subparagraph><subparagraph id="ID0EFA2723D17B417F858ABB9E64BB1C72"><enum>(C)</enum><text>the identity of
the drug, including the established name of the drug, the quantity of the drug,
and the lot number assigned by the manufacturer;</text>
</subparagraph><subparagraph id="ID1440C2C5672C44198AD12E9E929403E3"><enum>(D)</enum><text>the identity of
the manufacturer of the drug, including the identity of the establishment at
which the drug was manufactured;</text>
</subparagraph><subparagraph id="IDAEF00B3DB79940C3ADD210A501227943"><enum>(E)</enum><text>the country from
which the drug is shipped;</text>
</subparagraph><subparagraph id="ID793A31A99BDE42728F1159AABCD2E6E3"><enum>(F)</enum><text>the name and
complete contact information for the shipper of the drug;</text>
</subparagraph><subparagraph id="ID1841AE62183B4FFB8976F0F8DFB301D4"><enum>(G)</enum><text>anticipated
arrival information, including the port of arrival and crossing location within
that port, and the date and time;</text>
</subparagraph><subparagraph id="IDF5B8BF52E7CE4F408E4A5C8831964D1D"><enum>(H)</enum><text>a summary of the
chain of custody of the drug from the establishment in which the drug was
manufactured to the importer;</text>
</subparagraph><subparagraph id="ID7C0CFA0FCECB41978B829B30D798F4E5"><enum>(I)</enum><text>a declaration as
to whether the Secretary has ordered that importation of the drug from the
permitted country cease under subsection (g)(2)(C) or (D); and</text>
</subparagraph><subparagraph id="IDAA063C40EC8D49A88CB6943058CD3ED4"><enum>(J)</enum><text>such other
information as the Secretary may require by regulation.</text>
</subparagraph></paragraph><paragraph id="IDD625FBD2045F4527B83F4DC52FBB3B8F"><enum>(5)</enum><header>Marking of
compliant shipments</header><text>A registration condition is that the importer
involved agrees, before wholesale distribution (as defined in section 503(e))
of a qualifying drug that has been imported under subsection (a), to affix to
each container of such drug such markings or other technology as the Secretary
determines necessary to identify the shipment as being in compliance with all
registration conditions, except that the markings or other technology shall not
be required on a drug that bears comparable, compatible markings or technology
from the manufacturer of the drug. Markings or other technology under the
preceding sentence shall—</text>
<subparagraph id="IDF02B8B0B73D94171B09EC61B908ED7C3"><enum>(A)</enum><text>be designed to
prevent affixation of the markings or other technology to any container that is
not authorized to bear the markings; and</text>
</subparagraph><subparagraph id="ID038179724CCD48E4B73B06E3CACA5A8A"><enum>(B)</enum><text>shall include
anticounterfeiting or track-and-trace technologies, taking into account the
economic and technical feasibility of such technologies.</text>
</subparagraph></paragraph><paragraph id="IDEFF60D8A49804F41B002BC17EF1D5D35"><enum>(6)</enum><header>Certain duties
relating to importers</header><text>Duties of the Secretary with respect to an
importer include the following:</text>
<subparagraph id="ID458512CF6B674F6F97F36CF3CBD0603D"><enum>(A)</enum><text>Inspecting,
randomly, but not less than 12 times annually, the places of business of the
importer at which a qualifying drug is initially received after
importation.</text>
</subparagraph><subparagraph id="IDE5718A0C93AC4E0899FEA155B0235489"><enum>(B)</enum><text>During the
inspections under subparagraph (A), verifying the chain of custody of a
statistically significant sample of qualifying drugs from the establishment in
which the drug was manufactured to the importer, which shall be accomplished or
supplemented by the use of anticounterfeiting or track-and-trace technologies,
taking into account the economic and technical feasibility of those
technologies, except that a drug that lacks such technologies from the point of
manufacture shall not for that reason be excluded from importation by an
importer.</text>
</subparagraph><subparagraph id="ID3DE9E22F108C4331910D34A5F17FF0F7"><enum>(C)</enum><text>Reviewing notices
under paragraph (4).</text>
</subparagraph><subparagraph id="ID8D505DA584884CBB8F4D6749B4C92C41"><enum>(D)</enum><text>Inspecting as the
Secretary determines is necessary the warehouses and other facilities,
including records of other parties in the chain of custody of qualifying
drugs.</text>
</subparagraph><subparagraph id="ID5FA577FC2C6746B2AAB3FBDC4138284F"><enum>(E)</enum><text>Determining
whether the importer is in compliance with all other registration
conditions.</text>
</subparagraph></paragraph></subsection><subsection id="ID997C87182793416EAB3179B6BBB4F4A6"><enum>(e)</enum><header>Importer
fees</header>
<paragraph id="IDF3AF1A58A9AC4A8CB0DE0621D6C04D7F"><enum>(1)</enum><header>Registration
fee</header><text>A registration condition is that the importer involved pays
to the Secretary a fee of $10,000 due on the date on which the importer first
submits the registration to the Secretary under subsection (b).</text>
</paragraph><paragraph id="IDBEE7EBFBBFC3416C9123C5E54B052CE8"><enum>(2)</enum><header>Inspection
fee</header><text>A registration condition is that the importer involved pays a
fee to the Secretary in accordance with this subsection. Such fee shall be paid
not later than October 1 and April 1 of each fiscal year in the amount provided
for under paragraph (3).</text>
</paragraph><paragraph id="ID995318B86A7F42598A1B9E21E90E1C78"><enum>(3)</enum><header>Amount of
inspection fee</header>
<subparagraph id="ID0A8543A9A8D040ACAA68DC80E8254ACC"><enum>(A)</enum><header>Aggregate total
of fees</header><text>Not later than 30 days before the start of each fiscal
year, the Secretary, in consultation with the Secretary of Homeland Security
and the Secretary of the Treasury, shall establish an aggregate total of fees
to be collected under paragraph (2) for importers for that fiscal year that is
sufficient, and not more than necessary, to pay the costs for that fiscal year
of administering this section with respect to registered importers, including
the costs associated with—</text>
<clause id="IDFEE802E7101647339EB6C58AAA958FFA"><enum>(i)</enum><text>inspecting the
facilities of registered importers, and of other entities in the chain of
custody of a qualifying drug as necessary, under subsection (d)(6);</text>
</clause><clause id="IDF602388C898E4E249C213A87E52DBB52"><enum>(ii)</enum><text>developing,
implementing, and operating under such subsection an electronic system for
submission and review of the notices required under subsection (d)(4) with
respect to shipments of qualifying drugs under subsection (a) to assess
compliance with all registration conditions when such shipments are offered for
import into the United States; and</text>
</clause><clause id="ID0E7C09082F574B729B465AAD7D277754"><enum>(iii)</enum><text>inspecting such
shipments as necessary, when offered for import into the United States to
determine if such a shipment should be refused admission under subsection
(g)(5).</text>
</clause></subparagraph><subparagraph id="IDA8AC6917D25D4AA882FB1F18A7075975"><enum>(B)</enum><header>Limitation</header><text>Subject
to subparagraph (C), the aggregate total of fees collected under paragraph (2)
for a fiscal year shall not exceed 2.5 percent of the total price of qualifying
drugs imported during that fiscal year into the United States by registered
importers under subsection (a).</text>
</subparagraph><subparagraph id="ID6DCD360C31924A429D338868FCA8D669"><enum>(C)</enum><header>Total price of
drugs</header>
<clause id="IDC8FD30AD971348759EF1324BBF08C468"><enum>(i)</enum><header>Estimate</header><text>For
the purposes of complying with the limitation described in subparagraph (B)
when establishing under subparagraph (A) the aggregate total of fees to be
collected under paragraph (2) for a fiscal year, the Secretary shall estimate
the total price of qualifying drugs imported into the United States by
registered importers during that fiscal year by adding the total price of
qualifying drugs imported by each registered importer during the 6-month period
from January 1 through June 30 of the previous fiscal year, as reported to the
Secretary by each registered importer under subsection (b)(1)(J).</text>
</clause><clause id="IDBB9CFCC52DEF493B82214F75BA95BF46"><enum>(ii)</enum><header>Calculation</header><text>Not
later than March 1 of the fiscal year that follows the fiscal year for which
the estimate under clause (i) is made, the Secretary shall calculate the total
price of qualifying drugs imported into the United States by registered
importers during that fiscal year by adding the total price of qualifying drugs
imported by each registered importer during that fiscal year, as reported to
the Secretary by each registered importer under subsection (b)(1)(J).</text>
</clause><clause id="IDBCB2AE0977904F049FC794DA9C4D6413"><enum>(iii)</enum><header>Adjustment</header><text>If
the total price of qualifying drugs imported into the United States by
registered importers during a fiscal year as calculated under clause (ii) is
less than the aggregate total of fees collected under paragraph (2) for that
fiscal year, the Secretary shall provide for a pro-rata reduction in the fee
due from each registered importer on April 1 of the subsequent fiscal year so
that the limitation described in subparagraph (B) is observed.</text>
</clause></subparagraph><subparagraph id="ID2C446A18968A4EE09421815E08A1D0B1"><enum>(D)</enum><header>Individual
importer fee</header><text>Subject to the limitation described in subparagraph
(B), the fee under paragraph (2) to be paid on October 1 and April 1 by an
importer shall be an amount that is proportional to a reasonable estimate by
the Secretary of the semiannual share of the importer of the volume of
qualifying drugs imported by importers under subsection (a).</text>
</subparagraph></paragraph><paragraph id="IDC81FF58464F941A8BEFBE0F83978AE8D"><enum>(4)</enum><header>Use of
fees</header>
<subparagraph id="IDBE754EC830BA46CF8FFEE350032239E8"><enum>(A)</enum><header>In
general</header><text>Subject to appropriations Acts, fees collected by the
Secretary under paragraphs (1) and (2) shall be credited to the appropriation
account for salaries and expenses of the Food and Drug Administration until
expended (without fiscal year limitation), and the Secretary may, in
consultation with the Secretary of Homeland Security and the Secretary of the
Treasury, transfer some proportion of such fees to the appropriation account
for salaries and expenses of the Bureau of Customs and Border Protection until
expended (without fiscal year limitation).</text>
</subparagraph><subparagraph id="IDF65248550EDB4A6B8FFBCDA8A6800EE0"><enum>(B)</enum><header>Sole
purpose</header><text>Fees collected by the Secretary under paragraphs (1) and
(2) are only available to the Secretary and, if transferred, to the Secretary
of Homeland Security, and are for the sole purpose of paying the costs referred
to in paragraph (3)(A).</text>
</subparagraph></paragraph><paragraph id="ID860AC212830B482DB12B644E299E4361"><enum>(5)</enum><header>Collection of
fees</header><text>In any case where the Secretary does not receive payment of
a fee assessed under paragraph (1) or (2) within 30 days after it is due, such
fee shall be treated as a claim of the United States Government subject to
subchapter II of chapter 37 of title 31, United States Code.</text>
</paragraph></subsection><subsection id="ID0786B1EF14994477B5413BBCAE9EAAB8"><enum>(f)</enum><header>Exporter
fees</header>
<paragraph id="ID767C26CC4A7E4925B8AA4473CA0D1740"><enum>(1)</enum><header>Registration
fee</header><text>A registration condition is that the exporter involved pays
to the Secretary a fee of $10,000 due on the date on which the exporter first
submits that registration to the Secretary under subsection (b).</text>
</paragraph><paragraph id="ID3905B8730136434BBFB7360483337AEB"><enum>(2)</enum><header>Inspection
fee</header><text>A registration condition is that the exporter involved pays a
fee to the Secretary in accordance with this subsection. Such fee shall be paid
not later than October 1 and April 1 of each fiscal year in the amount provided
for under paragraph (3).</text>
</paragraph><paragraph id="ID678767416B004C93A0939FD007EF9617"><enum>(3)</enum><header>Amount of
inspection fee</header>
<subparagraph id="ID5C6D335A50A64C0D9965C9921D18DFEB"><enum>(A)</enum><header>Aggregate total
of fees</header><text>Not later than 30 days before the start of each fiscal
year, the Secretary, in consultation with the Secretary of Homeland Security
and the Secretary of the Treasury, shall establish an aggregate total of fees
to be collected under paragraph (2) for exporters for that fiscal year that is
sufficient, and not more than necessary, to pay the costs for that fiscal year
of administering this section with respect to registered exporters, including
the costs associated with—</text>
<clause id="ID7857B7A7F7D840739714D5D65FE0051B"><enum>(i)</enum><text>inspecting the
facilities of registered exporters, and of other entities in the chain of
custody of a qualifying drug as necessary, under subsection (d)(3);</text>
</clause><clause id="ID10E2F1BE655A48B29F749529B36A9C06"><enum>(ii)</enum><text>developing,
implementing, and operating under such subsection a system to screen marks on
shipments of qualifying drugs under subsection (a) that indicate compliance
with all registration conditions, when such shipments are offered for import
into the United States; and</text>
</clause><clause id="IDB7D7001954BF4175B6565A1641C494D1"><enum>(iii)</enum><text>screening such
markings, and inspecting such shipments as necessary, when offered for import
into the United States to determine if such a shipment should be refused
admission under subsection (g)(5).</text>
</clause></subparagraph><subparagraph id="ID5DDAC6157FB44770ADFAFB10926A9E8C"><enum>(B)</enum><header>Limitation</header><text>Subject
to subparagraph (C), the aggregate total of fees collected under paragraph (2)
for a fiscal year shall not exceed 2.5 percent of the total price of qualifying
drugs imported during that fiscal year into the United States by registered
exporters under subsection (a).</text>
</subparagraph><subparagraph id="ID82666CF994884C90B9357308B420A533"><enum>(C)</enum><header>Total price of
drugs</header>
<clause id="ID4CE13ED2BF3741D7AC34CFF92AA67A61"><enum>(i)</enum><header>Estimate</header><text>For
the purposes of complying with the limitation described in subparagraph (B)
when establishing under subparagraph (A) the aggregate total of fees to be
collected under paragraph (2) for a fiscal year, the Secretary shall estimate
the total price of qualifying drugs imported into the United States by
registered exporters during that fiscal year by adding the total price of
qualifying drugs exported by each registered exporter during the 6-month period
from January 1 through June 30 of the previous fiscal year, as reported to the
Secretary by each registered exporter under subsection (b)(1)(I)(iv).</text>
</clause><clause id="IDC26A5D5C48A344FCB2B2A4BE7E0931CA"><enum>(ii)</enum><header>Calculation</header><text>Not
later than March 1 of the fiscal year that follows the fiscal year for which
the estimate under clause (i) is made, the Secretary shall calculate the total
price of qualifying drugs imported into the United States by registered
exporters during that fiscal year by adding the total price of qualifying drugs
exported by each registered exporter during that fiscal year, as reported to
the Secretary by each registered exporter under subsection
(b)(1)(I)(iv).</text>
</clause><clause id="ID3584D1977E704D6EA5C2A96E928B9DBF"><enum>(iii)</enum><header>Adjustment</header><text>If
the total price of qualifying drugs imported into the United States by
registered exporters during a fiscal year as calculated under clause (ii) is
less than the aggregate total of fees collected under paragraph (2) for that
fiscal year, the Secretary shall provide for a pro-rata reduction in the fee
due from each registered exporter on April 1 of the subsequent fiscal year so
that the limitation described in subparagraph (B) is observed.</text>
</clause></subparagraph><subparagraph id="IDC45DF0D815834A019E686FFA483F565C"><enum>(D)</enum><header>Individual
exporter fee</header><text>Subject to the limitation described in subparagraph
(B), the fee under paragraph (2) to be paid on October 1 and April 1 by an
exporter shall be an amount that is proportional to a reasonable estimate by
the Secretary of the semiannual share of the exporter of the volume of
qualifying drugs exported by exporters under subsection (a).</text>
</subparagraph></paragraph><paragraph id="IDF4FAD563095A40DBB0C4C209909228AF"><enum>(4)</enum><header>Use of
fees</header>
<subparagraph id="ID729A24E666384C8980B652A866208802"><enum>(A)</enum><header>In
general</header><text>Subject to appropriations Acts, fees collected by the
Secretary under paragraphs (1) and (2) shall be credited to the appropriation
account for salaries and expenses of the Food and Drug Administration until
expended (without fiscal year limitation), and the Secretary may, in
consultation with the Secretary of Homeland Security and the Secretary of the
Treasury, transfer some proportion of such fees to the appropriation account
for salaries and expenses of the Bureau of Customs and Border Protection until
expended (without fiscal year limitation).</text>
</subparagraph><subparagraph id="ID77A345ADF32C4B9EAC8751A0FE747CA4"><enum>(B)</enum><header>Sole
purpose</header><text>Fees collected by the Secretary under paragraphs (1) and
(2) are only available to the Secretary and, if transferred, to the Secretary
of Homeland Security, and are for the sole purpose of paying the costs referred
to in paragraph (3)(A).</text>
</subparagraph></paragraph><paragraph id="IDD6A63CE1A9D04E75B99D0EAD52D9E8B8"><enum>(5)</enum><header>Collection of
fees</header><text>In any case where the Secretary does not receive payment of
a fee assessed under paragraph (1) or (2) within 30 days after it is due, such
fee shall be treated as a claim of the United States Government subject to
subchapter II of chapter 37 of title 31, United States Code.</text>
</paragraph></subsection><subsection id="ID4B01F0B6133B4FD9A9049AC5C985F282"><enum>(g)</enum><header>Compliance with
Section <enum-in-header>801(a)</enum-in-header></header>
<paragraph id="IDEB89B825C9E949F680B8564B16AFFAF3"><enum>(1)</enum><header>In
general</header><text>A registration condition is that each qualifying drug
exported under subsection (a) by the registered exporter involved or imported
under subsection (a) by the registered importer involved is in compliance with
the standards referred to in section 801(a) regarding admission of the drug
into the United States, subject to paragraphs (2), (3), and (4).</text>
</paragraph><paragraph id="ID71975237FC234658B7EC0591B957846C"><enum>(2)</enum><header>Section
<enum-in-header>505</enum-in-header>; approval status</header>
<subparagraph id="ID2B9CE27998CB4A9FA6CB792DF36CA75A"><enum>(A)</enum><header>In
general</header><text>A qualifying drug that is imported or offered for import
under subsection (a) shall comply with the conditions established in the
approved application under section 505(b) for the U.S. label drug as described
under this subsection.</text>
</subparagraph><subparagraph id="ID7ED196AAE245487098C8D144B4EE4EA0"><enum>(B)</enum><header>Notice by
manufacturer; general provisions</header>
<clause id="IDD1910B654A174288AEA28ED4440AF3AF"><enum>(i)</enum><header>In
general</header><text>The person that manufactures a qualifying drug that is,
or will be, introduced for commercial distribution in a permitted country shall
in accordance with this paragraph submit to the Secretary a notice that—</text>
<subclause id="IDDE0738D7576548F98EA191E81AB8FE42"><enum>(I)</enum><text>includes each
difference in the qualifying drug from a condition established in the approved
application for the U.S. label drug beyond—</text>
<item id="IDD2B776D833FB4D3BAAFA997C2EA5FF7B"><enum>(aa)</enum><text>the variations
provided for in the application; and</text>
</item><item id="ID54ADA72D867E49B1BC7CE38BEA2EF21D"><enum>(bb)</enum><text>any difference
in labeling (except ingredient labeling); or</text>
</item></subclause><subclause id="IDA2DF23B0F525484A818D7D223EA5200D"><enum>(II)</enum><text>States that
there is no difference in the qualifying drug from a condition established in
the approved application for the U.S. label drug beyond—</text>
<item id="IDAF28774A9A1A47AA9ABDE3BD74F08420"><enum>(aa)</enum><text>the variations
provided for in the application; and</text>
</item><item id="IDC32CEFCFD91640F7A4E7156B91AE1235"><enum>(bb)</enum><text>any difference
in labeling (except ingredient labeling).</text>
</item></subclause></clause><clause id="IDDB1EDB0A7DBF4343BDC456CF6FD247A9"><enum>(ii)</enum><header>Information in
notice</header><text>A notice under clause (i)(I) shall include the information
that the Secretary may require under section 506A, any additional information
the Secretary may require (which may include data on bioequivalence if such
data are not required under section 506A), and, with respect to the permitted
country that approved the qualifying drug for commercial distribution, or with
respect to which such approval is sought, include the following:</text>
<subclause id="IDA8F4215AA87446AFA021531C34FA44A5"><enum>(I)</enum><text>The date on which
the qualifying drug with such difference was, or will be, introduced for
commercial distribution in the permitted country.</text>
</subclause><subclause id="IDC8902493E4A44453B498F15F8EFE5A85"><enum>(II)</enum><text>Information
demonstrating that the person submitting the notice has also notified the
government of the permitted country in writing that the person is submitting to
the Secretary a notice under clause (i)(I), which notice describes the
difference in the qualifying drug from a condition established in the approved
application for the U.S. label drug.</text>
</subclause><subclause id="IDB359B9FCEB93439E980A9E274774E037"><enum>(III)</enum><text>The information
that the person submitted or will submit to the government of the permitted
country for purposes of obtaining approval for commercial distribution of the
drug in the country which, if in a language other than English, shall be
accompanied by an English translation verified to be complete and accurate,
with the name, address, and a brief statement of the qualifications of the
person that made the translation.</text>
</subclause></clause><clause id="IDA0F7658E98444A26A9433F9B8E02E0E1"><enum>(iii)</enum><header>Certifications</header><text>The
chief executive officer and the chief medical officer of the manufacturer
involved shall each certify in the notice under clause (i) that—</text>
<subclause id="ID64D4B0BADA204706856E68CF6A830E17"><enum>(I)</enum><text>the information
provided in the notice is complete and true; and</text>
</subclause><subclause id="IDD4E573E542B74222AF43A733315559BA"><enum>(II)</enum><text>a copy of the
notice has been provided to the Federal Trade Commission and to the State
attorneys general.</text>
</subclause></clause><clause id="ID670E778EF21D4D90AF1872FB40415EBE"><enum>(iv)</enum><header>Fee</header><text>If
a notice submitted under clause (i) includes a difference that would, under
section 506A, require the submission of a supplemental application if made as a
change to the U.S. label drug, the person that submits the notice shall pay to
the Secretary a fee in the same amount as would apply if the person were paying
a fee pursuant to section 736(a)(1)(A)(ii). Subject to appropriations Acts,
fees collected by the Secretary under the preceding sentence are available only
to the Secretary and are for the sole purpose of paying the costs of reviewing
notices submitted under clause (i).</text>
</clause><clause id="ID48FDF50CCA374BF9B0BDB0055566DAC4"><enum>(v)</enum><header>Timing of
submission of notices</header>
<subclause id="ID13B0F03898294D27922DAAB3F687297B"><enum>(I)</enum><header>Prior approval
notices</header><text>A notice under clause (i) to which subparagraph (C)
applies shall be submitted to the Secretary not later than 120 days before the
qualifying drug with the difference is introduced for commercial distribution
in a permitted country, unless the country requires that distribution of the
qualifying drug with the difference begin less than 120 days after the country
requires the difference.</text>
</subclause><subclause id="ID6BD2516C15114BD692DA807ED4692021"><enum>(II)</enum><header>Other approval
notices</header><text>A notice under clause (i) to which subparagraph (D)
applies shall be submitted to the Secretary not later than the day on which the
qualifying drug with the difference is introduced for commercial distribution
in a permitted country.</text>
</subclause><subclause id="IDC24668F2D85140509BC15B94545AD775"><enum>(III)</enum><header>Other
notices</header><text>A notice under clause (i) to which subparagraph (E)
applies shall be submitted to the Secretary on the date that the qualifying
drug is first introduced for commercial distribution in a permitted country and
annually thereafter.</text>
</subclause></clause><clause id="ID74FD1F83A56F4E529C08BE537D9BDFB0"><enum>(vi)</enum><header>Review by
Secretary</header>
<subclause id="ID9B9CE452560646E590E986E250FFDE12"><enum>(I)</enum><header>In
general</header><text>In this paragraph, the difference in a qualifying drug
that is submitted in a notice under clause (i) from the U.S. label drug shall
be treated by the Secretary as if it were a manufacturing change to the U.S.
label drug under section 506A.</text>
</subclause><subclause id="IDB2843EED62B247F283D53189DBB16EB9"><enum>(II)</enum><header>Standard of
review</header><text>Except as provided in subclause (III), the Secretary shall
review and approve or disapprove the difference in a notice submitted under
clause (i), if required under section 506A, using the safe and effective
standard for approving or disapproving a manufacturing change under section
506A.</text>
</subclause><subclause id="ID627FE5B2604F42A8AED0F7693FADAF35"><enum>(III)</enum><header>Bioequivalence</header><text>If
the Secretary would approve the difference in a notice submitted under clause
(i) using the safe and effective standard under section 506A and if the
Secretary determines that the qualifying drug is not bioequivalent to the U.S.
label drug, the Secretary shall—</text>
<item id="IDC56BAEC220A148C89B48669714459AD6"><enum>(aa)</enum><text>include in the
labeling provided under paragraph (3) a prominent advisory that the qualifying
drug is safe and effective but is not bioequivalent to the U.S. label drug if
the Secretary determines that such an advisory is necessary for health care
practitioners and patients to use the qualifying drug safely and effectively;
or</text>
</item><item id="ID348296E252DD403EBDBBB185B2B98699"><enum>(bb)</enum><text>decline to
approve the difference if the Secretary determines that the availability of
both the qualifying drug and the U.S. label drug would pose a threat to the
public health.</text>
</item></subclause><subclause id="ID62E52D3C501B44F785B9572641C2CE6D"><enum>(IV)</enum><header>Review by the
Secretary</header><text>The Secretary shall review and approve or disapprove
the difference in a notice submitted under clause (i), if required under
section 506A, not later than 120 days after the date on which the notice is
submitted.</text>
</subclause><subclause id="ID90E0056566264282A05DEF9953F5C2D7"><enum>(V)</enum><header>Establishment
inspection</header><text>If review of such difference would require an
inspection of the establishment in which the qualifying drug is
manufactured—</text>
<item id="ID38770BAE9E3B4226BB3938CF8654538A"><enum>(aa)</enum><text>such inspection
by the Secretary shall be authorized; and</text>
</item><item id="IDF7A2CFBFA8A14015BD60FF3A70DCA230"><enum>(bb)</enum><text>the Secretary
may rely on a satisfactory report of a good manufacturing practice inspection
of the establishment from a permitted country whose regulatory system the
Secretary recognizes as equivalent under a mutual recognition agreement, as
provided under section 510(i)(3), section 803, or part 26 of title 21, Code of
Federal Regulations (or any corresponding successor rule or regulation).</text>
</item></subclause></clause><clause id="ID646653EA1A7B409293D0D0955DA18D21"><enum>(vii)</enum><header>Publication
of information on notices</header>
<subclause id="ID2100A5EB0A4D4840A1636F28E59F6DD7"><enum>(I)</enum><header>In
general</header><text>Through the Internet website of the Food and Drug
Administration and a toll-free telephone number, the Secretary shall readily
make available to the public a list of notices submitted under clause
(i).</text>
</subclause><subclause id="IDFE61E463AD834A058226BC37D779B80A"><enum>(II)</enum><header>Contents</header><text>The
list under subclause (I) shall include the date on which a notice is submitted
and whether—</text>
<item id="IDD6D4AF41901649E8A950E2C67BCA994B"><enum>(aa)</enum><text>a
notice is under review;</text>
</item><item id="ID5C72435E29A043CD8C8275BB90D7B0C5"><enum>(bb)</enum><text>the Secretary
has ordered that importation of the qualifying drug from a permitted country
cease; or</text>
</item><item id="ID7EF7F5B5D11B4D66B60760DE8DACDA97"><enum>(cc)</enum><text>the importation
of the drug is permitted under subsection (a).</text>
</item></subclause><subclause id="ID190EA990B4F24A20A42FDD7E36E7CF0D"><enum>(III)</enum><header>Update</header><text>The
Secretary shall promptly update the Internet website with any changes to the
list.</text>
</subclause></clause></subparagraph><subparagraph id="ID5AE492B48E2E4AC78D827E8E2161B073"><enum>(C)</enum><header>Notice; drug
difference requiring prior approval</header><text>In the case of a notice under
subparagraph (B)(i) that includes a difference that would, under section
506A(c) or (d)(3)(B)(i), require the approval of a supplemental application
before the difference could be made to the U.S. label drug the following shall
occur:</text>
<clause id="IDC50AE691ABB8474291DB25D283CA20C2"><enum>(i)</enum><text>Promptly after
the notice is submitted, the Secretary shall notify registered exporters,
registered importers, the Federal Trade Commission, and the State attorneys
general that the notice has been submitted with respect to the qualifying drug
involved.</text>
</clause><clause id="ID9F5D28B5AB714190B9A208F9AFC1571D"><enum>(ii)</enum><text>If the Secretary
has not made a determination whether such a supplemental application regarding
the U.S. label drug would be approved or disapproved by the date on which the
qualifying drug involved is to be introduced for commercial distribution in a
permitted country, the Secretary shall—</text>
<subclause id="IDC075E61F59834A63BCBA1E58574D2FDA"><enum>(I)</enum><text>order that the
importation of the qualifying drug involved from the permitted country not
begin until the Secretary completes review of the notice; and</text>
</subclause><subclause id="ID5C1BBE681640411284A7168A8CB2488A"><enum>(II)</enum><text>promptly notify
registered exporters, registered importers, the Federal Trade Commission, and
the State attorneys general of the order.</text>
</subclause></clause><clause id="IDCBBBEB571604425195756F17FD6E49E9"><enum>(iii)</enum><text>If the
Secretary determines that such a supplemental application regarding the U.S.
label drug would not be approved, the Secretary shall—</text>
<subclause id="ID5105D525C60C49AF8C7AC6E6CF920173"><enum>(I)</enum><text>order that the
importation of the qualifying drug involved from the permitted country cease,
or provide that an order under clause (ii), if any, remains in effect;</text>
</subclause><subclause id="ID8DA5CE99DC9C4CEBB1DC13B55620632A"><enum>(II)</enum><text>notify the
permitted country that approved the qualifying drug for commercial distribution
of the determination; and</text>
</subclause><subclause id="IDA47F8E1EEBEA4E4C89E664C718269CED"><enum>(III)</enum><text>promptly notify
registered exporters, registered importers, the Federal Trade Commission, and
the State attorneys general of the determination.</text>
</subclause></clause><clause id="IDF3DDB8D4AD5944B78D58B199BC4B34A0"><enum>(iv)</enum><text>If the Secretary
determines that such a supplemental application regarding the U.S. label drug
would be approved, the Secretary shall—</text>
<subclause id="IDD339AEB4359D4A1B9B59EE8C8D8561A4"><enum>(I)</enum><text>vacate the order
under clause (ii), if any;</text>
</subclause><subclause id="ID8A4F2D2194EC434CBE7CF084C2A73195"><enum>(II)</enum><text>consider the
difference to be a variation provided for in the approved application for the
U.S. label drug;</text>
</subclause><subclause id="ID3F7F474806D34FAC8510AFE7A3E7DA25"><enum>(III)</enum><text>permit
importation of the qualifying drug under subsection (a); and</text>
</subclause><subclause id="ID1DC50E8F10C44798B61C2861A83F0474"><enum>(IV)</enum><text>promptly notify
registered exporters, registered importers, the Federal Trade Commission, and
the State attorneys general of the determination.</text>
</subclause></clause></subparagraph><subparagraph id="ID9BFE4E6384DA4BE1B3489CE98754F040"><enum>(D)</enum><header>Notice; drug
difference not requiring prior approval</header><text>In the case of a notice
under subparagraph (B)(i) that includes a difference that would, under section
506A(d)(3)(B)(ii), not require the approval of a supplemental application
before the difference could be made to the U.S. label drug the following shall
occur:</text>
<clause id="IDFE2833DDBFA24C9EB380BA81047CC0DA"><enum>(i)</enum><text>During the period
in which the notice is being reviewed by the Secretary, the authority under
this subsection to import the qualifying drug involved continues in
effect.</text>
</clause><clause id="ID14FFB0C3CE5848EDB0AAE5180FA11BF8"><enum>(ii)</enum><text>If the Secretary
determines that such a supplemental application regarding the U.S. label drug
would not be approved, the Secretary shall—</text>
<subclause id="ID1EFE1D2582FE4631AA0926A2E533FB92"><enum>(I)</enum><text>order that the
importation of the qualifying drug involved from the permitted country
cease;</text>
</subclause><subclause id="IDD6DCFD02F70547C78159648005B223EB"><enum>(II)</enum><text>notify the
permitted country that approved the qualifying drug for commercial distribution
of the determination; and</text>
</subclause><subclause id="ID8719373C714C4539930D96FE77C4A2B0"><enum>(III)</enum><text>promptly notify
registered exporters, registered importers, the Federal Trade Commission, and
the State attorneys general of the determination.</text>
</subclause></clause><clause id="IDA11E5673FDBF4D2B96F10B1A84142777"><enum>(iii)</enum><text>If the
Secretary determines that such a supplemental application regarding the U.S.
label drug would be approved, the difference shall be considered to be a
variation provided for in the approved application for the U.S. label
drug.</text>
</clause></subparagraph><subparagraph id="IDBC3092283D244765A3B20EDD8999E015"><enum>(E)</enum><header>Notice; drug
difference not requiring approval; no difference</header><text>In the case of a
notice under subparagraph (B)(i) that includes a difference for which, under
section 506A(d)(1)(A), a supplemental application would not be required for the
difference to be made to the U.S. label drug, or that States that there is no
difference, the Secretary—</text>
<clause id="ID9A4A097FC7F34ACE832492837A022F76"><enum>(i)</enum><text>shall consider
such difference to be a variation provided for in the approved application for
the U.S. label drug;</text>
</clause><clause id="IDBBB56D14505A47579FADF571A81DF5A2"><enum>(ii)</enum><text>may not order
that the importation of the qualifying drug involved cease; and</text>
</clause><clause id="ID852D386BD3F342D4ADF8B7B0DD201CBA"><enum>(iii)</enum><text>shall promptly
notify registered exporters and registered importers.</text>
</clause></subparagraph><subparagraph id="ID4F8DE68A8BBD45EA81A15A57CEB7661A"><enum>(F)</enum><header>Differences in
active ingredient, route of administration, dosage form, or strength</header>
<clause id="IDB5870115C87B40FABA6C3F10290BB262"><enum>(i)</enum><header>In
general</header><text>A person who manufactures a drug approved under section
505(b) shall submit an application under section 505(b) for approval of another
drug that is manufactured for distribution in a permitted country by or for the
person that manufactures the drug approved under section 505(b) if—</text>
<subclause id="ID82341C169FBF4E569AC2DF45B4162679"><enum>(I)</enum><text>there is no
qualifying drug in commercial distribution in permitted countries whose
combined population represents at least 50 percent of the total population of
all permitted countries with the same active ingredient or ingredients, route
of administration, dosage form, and strength as the drug approved under section
505(b); and</text>
</subclause><subclause id="ID14B4647439B84D988C6D413315FECBC2"><enum>(II)</enum><text>each active
ingredient of the other drug is related to an active ingredient of the drug
approved under section 505(b), as defined in clause (v).</text>
</subclause></clause><clause id="ID6E0262940A27423EB3A26F63522BF924"><enum>(ii)</enum><header>Application
under Section <enum-in-header>505(b)</enum-in-header></header><text>The
application under section 505(b) required under clause (i) shall—</text>
<subclause id="IDE4BB0F69B77F4CE49EBC0F79C40C4AD7"><enum>(I)</enum><text>request approval
of the other drug for the indication or indications for which the drug approved
under section 505(b) is labeled;</text>
</subclause><subclause id="IDB62D9B34F96540059CFBD6C5E08B8BAB"><enum>(II)</enum><text>include the
information that the person submitted to the government of the permitted
country for purposes of obtaining approval for commercial distribution of the
other drug in that country, which if in a language other than English, shall be
accompanied by an English translation verified to be complete and accurate,
with the name, address, and a brief statement of the qualifications of the
person that made the translation;</text>
</subclause><subclause id="ID7635E1B2E24248A8852AD700862D236C"><enum>(III)</enum><text>include a right
of reference to the application for the drug approved under section 505(b);
and</text>
</subclause><subclause id="IDBD76D607BE914FEDAD0FE034FF8D90BA"><enum>(IV)</enum><text>include such
additional information as the Secretary may require.</text>
</subclause></clause><clause id="ID95622C3AAB6646E587BEE3E856486035"><enum>(iii)</enum><header>Timing of
submission of application</header><text>An application under section 505(b)
required under clause (i) shall be submitted to the Secretary not later than
the day on which the information referred to in clause (ii)(II) is submitted to
the government of the permitted country.</text>
</clause><clause id="ID41E2BCF3CC1A4EBCB0E073D9F230522A"><enum>(iv)</enum><header>Notice of
decision on application</header><text>The Secretary shall promptly notify
registered exporters, registered importers, the Federal Trade Commission, and
the State attorneys general of a determination to approve or to disapprove an
application under section 505(b) required under clause (i).</text>
</clause><clause id="ID15FFA49487594572BECF80ED389FFE5C"><enum>(v)</enum><header>Related active
ingredients</header><text>For purposes of clause (i)(II), 2 active ingredients
are related if they are—</text>
<subclause id="IDC732886DF5B2480385A96330801F3647"><enum>(I)</enum><text>the same;
or</text>
</subclause><subclause id="IDA32F64090F9646FCAFE5D26E541D3322"><enum>(II)</enum><text>different salts,
esters, or complexes of the same moiety.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="IDAF699952774247BEAAA31973C6CC41EB"><enum>(3)</enum><header>Section
<enum-in-header>502</enum-in-header>; labeling</header>
<subparagraph id="ID0FDBF00F89D74B8C86E92BAB5A3D6854"><enum>(A)</enum><header>Importation by
registered importer</header>
<clause id="ID3F0FA1D90FE34D6C90CD96EAE5B6EBBB"><enum>(i)</enum><header>In
general</header><text>In the case of a qualifying drug that is imported or
offered for import by a registered importer, such drug shall be considered to
be in compliance with section 502 and the labeling requirements under the
approved application for the U.S. label drug if the qualifying drug
bears—</text>
<subclause id="ID6039A0BBF4F74AC8BBB55CB48DAC8706"><enum>(I)</enum><text>a copy of the
labeling approved for the U.S. label drug under section 505, without regard to
whether the copy bears any trademark involved;</text>
</subclause><subclause id="IDED528DB9750C4A30A2428974865B9C4C"><enum>(II)</enum><text>the name of the
manufacturer and location of the manufacturer;</text>
</subclause><subclause id="ID601AE86D14E14F438B59AE42AAAAC747"><enum>(III)</enum><text>the lot number
assigned by the manufacturer;</text>
</subclause><subclause id="IDF8A92A8D64FF47AEB81253776CE0CA83"><enum>(IV)</enum><text>the name,
location, and registration number of the importer; and</text>
</subclause><subclause id="ID6451FF62C61D44E9A7977C83DEB23B70"><enum>(V)</enum><text>the National Drug
Code number assigned to the qualifying drug by the Secretary.</text>
</subclause></clause><clause id="ID25CB57E07F5041D79F03B867E267F207"><enum>(ii)</enum><header>Request for
copy of the labeling</header><text>The Secretary shall provide such copy to the
registered importer involved, upon request of the importer.</text>
</clause><clause id="ID8DB38A1162B345219DB5D451A827FCCF"><enum>(iii)</enum><header>Requested
labeling</header><text>The labeling provided by the Secretary under clause (ii)
shall—</text>
<subclause id="ID3CEA7DB6B0E84BABA14F1F99EF7514BF"><enum>(I)</enum><text>include the
established name, as defined in section 502(e)(3), for each active ingredient
in the qualifying drug;</text>
</subclause><subclause id="ID86D14056889342BE9851032621040505"><enum>(II)</enum><text>not include the
proprietary name of the U.S. label drug or any active ingredient
thereof;</text>
</subclause><subclause id="ID17CAF0AE62C446A6822F4BEBAE6720B6"><enum>(III)</enum><text>if required
under paragraph (2)(B)(vi)(III), a prominent advisory that the qualifying drug
is safe and effective but not bioequivalent to the U.S. label drug; and</text>
</subclause><subclause id="ID393580A9468B4092BCE0145440593BC4"><enum>(IV)</enum><text>if the inactive
ingredients of the qualifying drug are different from the inactive ingredients
for the U.S. label drug, include—</text>
<item id="IDD6A06A42EC6740D2A3145BBE1B82576F"><enum>(aa)</enum><text>a
prominent notice that the ingredients of the qualifying drug differ from the
ingredients of the U.S. label drug and that the qualifying drug must be
dispensed with an advisory to people with allergies about this difference and a
list of ingredients; and</text>
</item><item id="IDA1C31699099943879AE1D99F15FCC095"><enum>(bb)</enum><text>a
list of the ingredients of the qualifying drug as would be required under
section 502(e).</text>
</item></subclause></clause></subparagraph><subparagraph id="ID39036F5D2F584539BBF43534800444D5"><enum>(B)</enum><header>Importation by
individual</header>
<clause id="IDC2801F2D1CCF44D2A8F1654789081C5F"><enum>(i)</enum><header>In
general</header><text>In the case of a qualifying drug that is imported or
offered for import by a registered exporter to an individual, such drug shall
be considered to be in compliance with section 502 and the labeling
requirements under the approved application for the U.S. label drug if the
packaging and labeling of the qualifying drug complies with all applicable
regulations promulgated under sections 3 and 4 of the Poison Prevention
Packaging Act of 1970 (15 U.S.C. 1471 et seq.) and the labeling of the
qualifying drug includes—</text>
<subclause id="ID6770405009E54834A6304149571236DB"><enum>(I)</enum><text>directions for
use by the consumer;</text>
</subclause><subclause id="IDD0DC07D368E34DE8B33831281F25C2B9"><enum>(II)</enum><text>the lot number
assigned by the manufacturer;</text>
</subclause><subclause id="ID96756545D8F64ADDA2BBEEF73E17208C"><enum>(III)</enum><text>the name and
registration number of the exporter;</text>
</subclause><subclause id="ID99149BCB2567482590FD9E89E31F4477"><enum>(IV)</enum><text>if required
under paragraph (2)(B)(vi)(III), a prominent advisory that the drug is safe and
effective but not bioequivalent to the U.S. label drug;</text>
</subclause><subclause id="ID4DA12763CCA24E3A8D2F074DE8ED86EE"><enum>(V)</enum><text>if the inactive
ingredients of the drug are different from the inactive ingredients for the
U.S. label drug—</text>
<item id="IDF7615B4281A44B1C9B88C8BF46E9F412"><enum>(aa)</enum><text>a
prominent advisory that persons with an allergy should check the ingredient
list of the drug because the ingredients of the drug differ from the
ingredients of the U.S. label drug; and</text>
</item><item id="ID3F2ACEA680D24DEA8BC008DB97AF75F0"><enum>(bb)</enum><text>a
list of the ingredients of the drug as would be required under section 502(e);
and</text>
</item></subclause><subclause id="ID402D04C1801C47BEB3EA0FFE494424A1"><enum>(VI)</enum><text>a copy of any
special labeling that would be required by the Secretary had the U.S. label
drug been dispensed by a pharmacist in the United States, without regard to
whether the special labeling bears any trademark involved.</text>
</subclause></clause><clause id="id83CD825CBA3E40449EB7F8F91E1C2541"><enum>(ii)</enum><header>Packaging</header><text>A
qualifying drug offered for import to an individual by an exporter under this
section that is packaged in a unit-of-use container (as those items are defined
in the United States Pharmacopeia and National Formulary) shall not be
repackaged, provided that—</text>
<subclause id="idCECAF43D34A2434297046FC7C91D9C1F"><enum>(I)</enum><text>the packaging
complies with all applicable regulations under sections 3 and 4 of the Poison
Prevention Packaging Act of 1970 (15 U.S.C. 1471 et seq.); or</text>
</subclause><subclause id="id3CD9BE683DEB40EFBA827F66C8DE69C8"><enum>(II)</enum><text>the consumer
consents to waive the requirements of such Act, after being informed that the
packaging does not comply with such Act and that the exporter will provide the
drug in packaging that is compliant at no additional cost.</text>
</subclause></clause><clause id="ID45BBE2A6BC3A4D11B5DA86744F79EBBC"><enum>(iii)</enum><header>Request for
copy of special labeling and ingredient list</header><text>The Secretary shall
provide to the registered exporter involved a copy of the special labeling, the
advisory, and the ingredient list described under clause (i), upon request of
the exporter.</text>
</clause><clause id="ID8AD60E1DD8BE4C1F85AC67ED418F7BA6"><enum>(iv)</enum><header>Requested
labeling and ingredient list</header><text>The labeling and ingredient list
provided by the Secretary under clause (iii) shall—</text>
<subclause id="ID748994FF6701464D92CFE8E6EC665551"><enum>(I)</enum><text>include the
established name, as defined in section 502(e)(3), for each active ingredient
in the drug; and</text>
</subclause><subclause id="ID90DF311B5C4043E3A7DF977154B57A6D"><enum>(II)</enum><text>not include the
proprietary name of the U.S. label drug or any active ingredient
thereof.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="ID4E8D43110F5C401B90DFB7FE435E6D99"><enum>(4)</enum><header>Section
<enum-in-header>501</enum-in-header>; adulteration</header><text>A qualifying
drug that is imported or offered for import under subsection (a) shall be
considered to be in compliance with section 501 if the drug is in compliance
with subsection (c).</text>
</paragraph><paragraph id="IDE9F3A61F1A1B472387D564E13E377FD9"><enum>(5)</enum><header>Standards for
refusing admission</header><text>A drug exported under subsection (a) from a
registered exporter or imported by a registered importer may be refused
admission into the United States if 1 or more of the following applies:</text>
<subparagraph id="ID3F5ED036D53140FA94B65EE999EC67B5"><enum>(A)</enum><text>The drug is not a
qualifying drug.</text>
</subparagraph><subparagraph id="IDB337968453FB41FDA7C3BA85ED53440D"><enum>(B)</enum><text>A notice for the
drug required under paragraph (2)(B) has not been submitted to the
Secretary.</text>
</subparagraph><subparagraph id="ID9A44DE3B87ED4534A5CC8DA6C35B4300"><enum>(C)</enum><text>The Secretary has
ordered that importation of the drug from the permitted country cease under
paragraph (2) (C) or (D).</text>
</subparagraph><subparagraph id="IDEB55EC812D1145EC87883A8D5FABB444"><enum>(D)</enum><text>The drug does not
comply with paragraph (3) or (4).</text>
</subparagraph><subparagraph id="IDF5D938A7BF3545BA8A48CBE4640A1159"><enum>(E)</enum><text>The shipping
container appears damaged in a way that may affect the strength, quality, or
purity of the drug.</text>
</subparagraph><subparagraph id="IDFE69C81BF6CD4DF5A48BF5F65E2FF9E7"><enum>(F)</enum><text>The Secretary
becomes aware that—</text>
<clause id="ID8480697E986E4AC1967992BF6B76355A"><enum>(i)</enum><text>the drug may be
counterfeit;</text>
</clause><clause id="IDFF9C3BD2E82842D4BD26FCD853046B07"><enum>(ii)</enum><text>the drug may
have been prepared, packed, or held under insanitary conditions; or</text>
</clause><clause id="ID1689C0944ED7404499DB31D03F1DB0BF"><enum>(iii)</enum><text>the methods
used in, or the facilities or controls used for, the manufacturing, processing,
packing, or holding of the drug do not conform to good manufacturing
practice.</text>
</clause></subparagraph><subparagraph id="ID5F10B866F279436591C0B82A17969ED1"><enum>(G)</enum><text>The Secretary has
obtained an injunction under section 302 that prohibits the distribution of the
drug in interstate commerce.</text>
</subparagraph><subparagraph id="ID8F7BD432EB8A46B0812C45999AC82D98"><enum>(H)</enum><text>The Secretary has
under section 505(e) withdrawn approval of the drug.</text>
</subparagraph><subparagraph id="IDD2561153CF984870A8C68EF80EF77AFB"><enum>(I)</enum><text>The manufacturer
of the drug has instituted a recall of the drug.</text>
</subparagraph><subparagraph id="IDEF2380120FE244E5AFEA0AA75FD399CB"><enum>(J)</enum><text>If the drug is
imported or offered for import by a registered importer without submission of a
notice in accordance with subsection (d)(4).</text>
</subparagraph><subparagraph id="ID7736510443F846F387C0B85575817D2E"><enum>(K)</enum><text>If the drug is
imported or offered for import from a registered exporter to an individual and
1 or more of the following applies:</text>
<clause id="IDF025BF2CFF6B4D32B43513B7F2531E59"><enum>(i)</enum><text>The shipping
container for such drug does not bear the markings required under subsection
(d)(2).</text>
</clause><clause id="ID1172931698034F098B5B5AD5E6CAE820"><enum>(ii)</enum><text>The markings on
the shipping container appear to be counterfeit.</text>
</clause><clause id="IDDFA6441B35544C6CB65364604A468D54"><enum>(iii)</enum><text>The shipping
container or markings appear to have been tampered with.</text>
</clause></subparagraph></paragraph></subsection><subsection id="ID706620D78CCA45D7AD81759177D48D31"><enum>(h)</enum><header>Exporter
licensure in permitted country</header><text>A registration condition is that
the exporter involved agrees that a qualifying drug will be exported to an
individual only if the Secretary has verified that—</text>
<paragraph id="ID278203F6729B45A281CD8250759E026F"><enum>(1)</enum><text>the exporter is
authorized under the law of the permitted country in which the exporter is
located to dispense prescription drugs; and</text>
</paragraph><paragraph id="ID7FA007CE7F534E5FBBDF8C88D6758F0B"><enum>(2)</enum><text>the exporter
employs persons that are licensed under the law of the permitted country in
which the exporter is located to dispense prescription drugs in sufficient
number to dispense safely the drugs exported by the exporter to individuals,
and the exporter assigns to those persons responsibility for dispensing such
drugs to individuals.</text>
</paragraph></subsection><subsection id="ID4370C533001C44A0A21107C476691F00"><enum>(i)</enum><header>Individuals;
conditions for importation</header>
<paragraph id="IDA2B7BE0CE8D1474DB24F1B0389E997EB"><enum>(1)</enum><header>In
general</header><text>For purposes of subsection (a)(2)(B), the importation of
a qualifying drug by an individual is in accordance with this subsection if the
following conditions are met:</text>
<subparagraph id="IDC17E053C06534219883A351D26671D51"><enum>(A)</enum><text>The drug is
accompanied by a copy of a prescription for the drug, which
prescription—</text>
<clause id="ID3BEB937CBB484E52AEB79AE71D1D14FD"><enum>(i)</enum><text>is valid under
applicable Federal and State laws; and</text>
</clause><clause id="IDDE238F39A4684891B57BBF8D8CF43F98"><enum>(ii)</enum><text>was issued by a
practitioner who, under the law of a State of which the individual is a
resident, or in which the individual receives care from the practitioner who
issues the prescription, is authorized to administer prescription drugs.</text>
</clause></subparagraph><subparagraph id="ID2B256310D16646F79DC681CECC5C0E77"><enum>(B)</enum><text>The drug is
accompanied by a copy of the documentation that was required under the law or
regulations of the permitted country in which the exporter is located, as a
condition of dispensing the drug to the individual.</text>
</subparagraph><subparagraph id="ID88AED1674BD444E18F7DF4A96A2168DC"><enum>(C)</enum><text>The copies
referred to in subparagraphs (A)(i) and (B) are marked in a manner
sufficient—</text>
<clause id="IDA1AEBB9CBF1B48A98664E7D22DD2CDF9"><enum>(i)</enum><text>to indicate that
the prescription, and the equivalent document in the permitted country in which
the exporter is located, have been filled; and</text>
</clause><clause id="ID498CAD1D28314C3AB6980AB90DBFC710"><enum>(ii)</enum><text>to prevent a
duplicative filling by another pharmacist.</text>
</clause></subparagraph><subparagraph id="IDC732ABDBA18E49FD9E4DBA3983E07189"><enum>(D)</enum><text>The individual
has provided to the registered exporter a complete list of all drugs used by
the individual for review by the individuals who dispense the drug.</text>
</subparagraph><subparagraph id="ID575D19830C1247B19EE077C65838C236"><enum>(E)</enum><text>The quantity of
the drug does not exceed a 90-day supply.</text>
</subparagraph><subparagraph id="ID6F2B143AE3A0446788FA67E7E5D46960"><enum>(F)</enum><text>The drug is not
an ineligible subpart H drug. For purposes of this section, a prescription drug
is an <term>ineligible subpart H drug</term> if the drug was approved by the
Secretary under subpart H of part 314 of title 21, Code of Federal Regulations
(relating to accelerated approval), with restrictions under section 520 of such
part to assure safe use, and the Secretary has published in the Federal
Register a notice that the Secretary has determined that good cause exists to
prohibit the drug from being imported pursuant to this subsection.</text>
</subparagraph></paragraph><paragraph id="IDBC3643903FC946B4852030BE2FBC9BDE"><enum>(2)</enum><header>Notice
regarding drug refused admission</header><text>If a registered exporter ships a
drug to an individual pursuant to subsection (a)(2)(B) and the drug is refused
admission to the United States, a written notice shall be sent to the
individual and to the exporter that informs the individual and the exporter of
such refusal and the reason for the refusal.</text>
</paragraph></subsection><subsection id="ID374357AB2D644223807B8608FB3400F4"><enum>(j)</enum><header>Maintenance of
records and samples</header>
<paragraph id="ID155A077A507C4BA1A65BA9AD0D0AF7A8"><enum>(1)</enum><header>In
general</header><text>A registration condition is that the importer or exporter
involved shall—</text>
<subparagraph id="IDC0AFCF0A91B84E478088DAAA5502732B"><enum>(A)</enum><text>maintain records
required under this section for not less than 2 years; and</text>
</subparagraph><subparagraph id="ID6E6A87EC77B647078170C61EF6C2EDC7"><enum>(B)</enum><text>maintain samples
of each lot of a qualifying drug required under this section for not more than
2 years.</text>
</subparagraph></paragraph><paragraph id="ID2643B41B2B00470582A869A28D59B9D1"><enum>(2)</enum><header>Place of record
maintenance</header><text>The records described under paragraph (1) shall be
maintained—</text>
<subparagraph id="ID906CF4403E0F49D58D9DB5182D951CB8"><enum>(A)</enum><text>in the case of an
importer, at the place of business of the importer at which the importer
initially receives the qualifying drug after importation; or</text>
</subparagraph><subparagraph id="IDFFA6F6B311184F64822D8257B8541D54"><enum>(B)</enum><text>in the case of an
exporter, at the facility from which the exporter ships the qualifying drug to
the United States.</text>
</subparagraph></paragraph></subsection><subsection id="ID656055BCE25D429BAB9B17CCDA3FB718"><enum>(k)</enum><header>Drug
recalls</header>
<paragraph id="ID5BF189DB205D4EDBB6793A02E38D5CA6"><enum>(1)</enum><header>Manufacturers</header><text>A
person that manufactures a qualifying drug imported from a permitted country
under this section shall promptly inform the Secretary—</text>
<subparagraph id="IDF07B208BD7224FD0AAE3BCB8488DC8E8"><enum>(A)</enum><text>if the drug is
recalled or withdrawn from the market in a permitted country;</text>
</subparagraph><subparagraph id="IDA1FBD7C989B04D848086545E7D88AD78"><enum>(B)</enum><text>how the drug may
be identified, including lot number; and</text>
</subparagraph><subparagraph id="IDF3EFCA5430C64A9082170193116E7738"><enum>(C)</enum><text>the reason for
the recall or withdrawal.</text>
</subparagraph></paragraph><paragraph id="ID3D1F033FC8D8418597AA49125F77EB41"><enum>(2)</enum><header>Secretary</header><text>With
respect to each permitted country, the Secretary shall—</text>
<subparagraph id="IDCDAD20BC91BE42E6BD198BD2102BBE1E"><enum>(A)</enum><text>enter into an
agreement with the government of the country to receive information about
recalls and withdrawals of qualifying drugs in the country; or</text>
</subparagraph><subparagraph id="ID29C253675A744D639AC1EEE43D8A276C"><enum>(B)</enum><text>monitor recalls
and withdrawals of qualifying drugs in the country using any information that
is available to the public in any media.</text>
</subparagraph></paragraph><paragraph id="ID528FE626B5824D859527BE15B38146DB"><enum>(3)</enum><header>Notice</header><text>The
Secretary may notify, as appropriate, registered exporters, registered
importers, wholesalers, pharmacies, or the public of a recall or withdrawal of
a qualifying drug in a permitted country.</text>
</paragraph></subsection><subsection id="IDF1F1041E48FA4D6FB31F61B39D6DBFD9"><enum>(l)</enum><header>Drug labeling
and packaging</header>
<paragraph id="idC6CD60002E8645A593E5AF7D8F4F7CEA"><enum>(1)</enum><header>In
general</header><text>When a qualifying drug that is imported into the United
States by an importer under subsection (a) is dispensed by a pharmacist to an
individual, the pharmacist shall provide that the packaging and labeling of the
drug complies with all applicable regulations promulgated under sections 3 and
4 of the Poison Prevention Packaging Act of 1970 (15 U.S.C. 1471 et seq.) and
shall include with any other labeling provided to the individual the
following:</text>
<subparagraph id="IDFA326C1613EB430C893D1B69D4643271"><enum>(A)</enum><text>The lot number
assigned by the manufacturer.</text>
</subparagraph><subparagraph id="IDB5C12C14A05840D09BE4F2ED93C03314"><enum>(B)</enum><text>The name and
registration number of the importer.</text>
</subparagraph><subparagraph id="id6FC64810E8E84E7E87B4E0B91EADE119"><enum>(C)</enum><text>If required under
paragraph (2)(B)(vi)(III) of subsection (g), a prominent advisory that the drug
is safe and effective but not bioequivalent to the U.S. label drug.</text>
</subparagraph><subparagraph id="IDB23757324E44403780B2C0A00BAAE3C3"><enum>(D)</enum><text>If the inactive
ingredients of the drug are different from the inactive ingredients for the
U.S. label drug—</text>
<clause id="IDEBD71C768CBD4B05A581F3FCEF0055B3"><enum>(i)</enum><text>a
prominent advisory that persons with allergies should check the ingredient list
of the drug because the ingredients of the drug differ from the ingredients of
the U.S. label drug; and</text>
</clause><clause id="ID911A0221859340EBB49E8D851F1C0DB8"><enum>(ii)</enum><text>a list of the
ingredients of the drug as would be required under section 502(e).</text>
</clause></subparagraph></paragraph><paragraph id="idF3ECB940DCB34D07965666B9EA6094A1"><enum>(2)</enum><header>Packaging</header><text>A
qualifying drug that is packaged in a unit-of-use container (as those terms are
defined in the United States Pharmacopeia and National Formulary) shall not be
repackaged, provided that—</text>
<subparagraph id="id0CE6FDA8B0F446FB816AB48542494E07"><enum>(A)</enum><text>the packaging
complies with all applicable regulations under sections 3 and 4 of the Poison
Prevention Packaging Act of 1970 (15 U.S.C. 1471 et seq.); or</text>
</subparagraph><subparagraph id="id42B6E6BB9FC047F3A9F3717B5E8B85D9"><enum>(B)</enum><text>the consumer
consents to waive the requirements of such Act, after being informed that the
packaging does not comply with such Act and that the pharmacist will provide
the drug in packaging that is compliant at no additional cost.</text>
</subparagraph></paragraph></subsection><subsection id="ID920D46F3EFD7474087F9E86ED5728EA6"><enum>(m)</enum><header>Charitable
contributions</header><text>Notwithstanding any other provision of this
section, this section does not authorize the importation into the United States
of a qualifying drug donated or otherwise supplied for free or at nominal cost
by the manufacturer of the drug to a charitable or humanitarian organization,
including the United Nations and affiliates, or to a government of a foreign
country.</text>
</subsection><subsection id="IDC89CF2CE7F6E4FA59AE471F3C953A713"><enum>(n)</enum><header>Unfair and
discriminatory Acts and practices</header>
<paragraph id="IDB3CA6A3CA1324605804361AA3725424B"><enum>(1)</enum><header>In
general</header><text>It is unlawful for a manufacturer, directly or indirectly
(including by being a party to a licensing agreement or other agreement),
to—</text>
<subparagraph id="IDE958D16B60084DB993A6263425CA54D9"><enum>(A)</enum><text>discriminate by
charging a higher price for a prescription drug sold to a registered exporter
or other person in a permitted country that exports a qualifying drug to the
United States under this section than the price that is charged, inclusive of
rebates or other incentives to the permitted country or other person, to
another person that is in the same country and that does not export a
qualifying drug into the United States under this section;</text>
</subparagraph><subparagraph id="ID60E154D1EAA04C2CA7DCC779BEFFA89D"><enum>(B)</enum><text>discriminate by
charging a higher price for a prescription drug sold to a registered importer
or other person that distributes, sells, or uses a qualifying drug imported
into the United States under this section than the price that is charged to
another person in the United States that does not import a qualifying drug
under this section, or that does not distribute, sell, or use such a
drug;</text>
</subparagraph><subparagraph id="ID2C8D01C1EB4E4CAD8DFDD4A524031766"><enum>(C)</enum><text>discriminate by
denying, restricting, or delaying supplies of a prescription drug to a
registered exporter or other person in a permitted country that exports a
qualifying drug to the United States under this section or to a registered
importer or other person that distributes, sells, or uses a qualifying drug
imported into the United States under this section;</text>
</subparagraph><subparagraph id="ID4590EE89528B4D3F9EB5C16E7B2853D4"><enum>(D)</enum><text>discriminate by
publicly, privately, or otherwise refusing to do business with a registered
exporter or other person in a permitted country that exports a qualifying drug
to the United States under this section or with a registered importer or other
person that distributes, sells, or uses a qualifying drug imported into the
United States under this section;</text>
</subparagraph><subparagraph id="IDD4F17F7EF0ED4044A6C2AF150CFB3B00"><enum>(E)</enum><text>knowingly fail to
submit a notice under subsection (g)(2)(B)(i), knowingly fail to submit such a
notice on or before the date specified in subsection (g)(2)(B)(v) or as
otherwise required under subsection (e) (3), (4), and (5) of section 4 of the
<short-title>Pharmaceutical Market Access and Drug Safety
Act of 2009</short-title>, knowingly submit such a notice that makes a
materially false, fictitious, or fraudulent statement, or knowingly fail to
provide promptly any information requested by the Secretary to review such a
notice;</text>
</subparagraph><subparagraph id="ID510394677272452A8548A2A1027CF9E3"><enum>(F)</enum><text>knowingly fail to
submit an application required under subsection (g)(2)(F), knowingly fail to
submit such an application on or before the date specified in subsection
(g)(2)(F)(ii), knowingly submit such an application that makes a materially
false, fictitious, or fraudulent statement, or knowingly fail to provide
promptly any information requested by the Secretary to review such an
application;</text>
</subparagraph><subparagraph id="IDB72736FB8C5141CA8378452796225867"><enum>(G)</enum><text>cause there to be
a difference (including a difference in active ingredient, route of
administration, dosage form, strength, formulation, manufacturing
establishment, manufacturing process, or person that manufactures the drug)
between a prescription drug for distribution in the United States and the drug
for distribution in a permitted country;</text>
</subparagraph><subparagraph id="ID717FF36B9C534E599A54FA958849E70A"><enum>(H)</enum><text>refuse to allow
an inspection authorized under this section of an establishment that
manufactures a qualifying drug that is, or will be, introduced for commercial
distribution in a permitted country;</text>
</subparagraph><subparagraph id="ID7E5BE94FD72C41AAB80A95CD7934DEBD"><enum>(I)</enum><text>fail to conform
to the methods used in, or the facilities used for, the manufacturing,
processing, packing, or holding of a qualifying drug that is, or will be,
introduced for commercial distribution in a permitted country to good
manufacturing practice under this Act;</text>
</subparagraph><subparagraph id="IDB7DAC2D35065497C8C473EFF152867B1"><enum>(J)</enum><text>become a party to
a licensing agreement or other agreement related to a qualifying drug that
fails to provide for compliance with all requirements of this section with
respect to such drug;</text>
</subparagraph><subparagraph id="ID91909B39A61B4BCBAB57BB871CDF28A3"><enum>(K)</enum><text>enter into a
contract that restricts, prohibits, or delays the importation of a qualifying
drug under this section;</text>
</subparagraph><subparagraph id="IDCA3B51F9F9B3434CAD12EE3959E5439E"><enum>(L)</enum><text>engage in any
other action to restrict, prohibit, or delay the importation of a qualifying
drug under this section; or</text>
</subparagraph><subparagraph id="ID869F1D4ED73C4FB7B9DE0CD35B9E54B3"><enum>(M)</enum><text>engage in any
other action that the Federal Trade Commission determines to discriminate
against a person that engages or attempts to engage in the importation of a
qualifying drug under this section.</text>
</subparagraph></paragraph><paragraph id="idE41453FEF9D24168BC917CE240F92527"><enum>(2)</enum><header>Referral of
potential violations</header><text>The Secretary shall promptly refer to the
Federal Trade Commission each potential violation of subparagraph (E), (F),
(G), (H), or (I) of paragraph (1) that becomes known to the Secretary.</text>
</paragraph><paragraph id="IDBB09ECA47A2A4EBCBC39AF03FBECE180"><enum>(3)</enum><header>Affirmative
defense</header>
<subparagraph id="IDB0C81C9BCBB74A3686C3126A4E8F13BA"><enum>(A)</enum><header>Discrimination</header><text>It
shall be an affirmative defense to a charge that a manufacturer has
discriminated under subparagraph (A), (B), (C), (D), or (M) of paragraph (1)
that the higher price charged for a prescription drug sold to a person, the
denial, restriction, or delay of supplies of a prescription drug to a person,
the refusal to do business with a person, or other discriminatory activity
against a person, is not based, in whole or in part, on—</text>
<clause id="IDB71416640BA34FD0829EA7E2B471D501"><enum>(i)</enum><text>the person
exporting or importing a qualifying drug into the United States under this
section; or</text>
</clause><clause id="ID58BA3F8BD1194594861F146988CCC21F"><enum>(ii)</enum><text>the person
distributing, selling, or using a qualifying drug imported into the United
States under this section.</text>
</clause></subparagraph><subparagraph id="ID3E78C67B77944F55AED321FF01E77C73"><enum>(B)</enum><header>Drug
differences</header><text>It shall be an affirmative defense to a charge that a
manufacturer has caused there to be a difference described in subparagraph (G)
of paragraph (1) that—</text>
<clause id="ID06F34B3182D345AF88C73FFCEC5FA653"><enum>(i)</enum><text>the difference
was required by the country in which the drug is distributed;</text>
</clause><clause id="IDDF5D98EDB58148EB9101D641A48295E9"><enum>(ii)</enum><text>the Secretary
has determined that the difference was necessary to improve the safety or
effectiveness of the drug;</text>
</clause><clause id="IDCF68B0C276D84B7E950AAE0B857C47DE"><enum>(iii)</enum><text>the person
manufacturing the drug for distribution in the United States has given notice
to the Secretary under subsection (g)(2)(B)(i) that the drug for distribution
in the United States is not different from a drug for distribution in permitted
countries whose combined population represents at least 50 percent of the total
population of all permitted countries; or</text>
</clause><clause id="ID5DF5CAFA8C124BFFACF1AA1539C5F2A3"><enum>(iv)</enum><text>the difference
was not caused, in whole or in part, for the purpose of restricting importation
of the drug into the United States under this section.</text>
</clause></subparagraph></paragraph><paragraph id="IDA45D7E781B2A4A3E97CAF5ABE3FF535F"><enum>(4)</enum><header>Effect of
subsection</header>
<subparagraph id="ID5098697F5DAD467FA212B66C5F9AB540"><enum>(A)</enum><header>Sales in other
countries</header><text>This subsection applies only to the sale or
distribution of a prescription drug in a country if the manufacturer of the
drug chooses to sell or distribute the drug in the country. Nothing in this
subsection shall be construed to compel the manufacturer of a drug to
distribute or sell the drug in a country.</text>
</subparagraph><subparagraph id="IDC22B229E7D2A49EF95835487629CDABD"><enum>(B)</enum><header>Discounts to
insurers, health plans, pharmacy benefit managers, and covered
entities</header><text>Nothing in this subsection shall be construed to—</text>
<clause id="IDE4A0EFBECF344265AF8E4E82E81AF1BC"><enum>(i)</enum><text>prevent or
restrict a manufacturer of a prescription drug from providing discounts to an
insurer, health plan, pharmacy benefit manager in the United States, or covered
entity in the drug discount program under section 340B of the
<act-name parsable-cite="PHSA">Public Health Service Act</act-name> (42 U.S.C.
256b) in return for inclusion of the drug on a formulary;</text>
</clause><clause id="IDC85CB29B17E54FB79B96997D8E205737"><enum>(ii)</enum><text>require that
such discounts be made available to other purchasers of the prescription drug;
or</text>
</clause><clause id="IDBB760B21F9654CA7B5CD14002FEFDDB9"><enum>(iii)</enum><text>prevent or
restrict any other measures taken by an insurer, health plan, or pharmacy
benefit manager to encourage consumption of such prescription drug.</text>
</clause></subparagraph><subparagraph id="ID9C09698E7BD746C4B3A6D047E3A05FFF"><enum>(C)</enum><header>Charitable
contributions</header><text>Nothing in this subsection shall be construed
to—</text>
<clause id="IDB6E285B6BAB94BDE9B320C0E60D2D851"><enum>(i)</enum><text>prevent a
manufacturer from donating a prescription drug, or supplying a prescription
drug at nominal cost, to a charitable or humanitarian organization, including
the United Nations and affiliates, or to a government of a foreign country;
or</text>
</clause><clause id="IDDE101AB8E2F240C2B7A497BD0BBE1043"><enum>(ii)</enum><text>apply to such
donations or supplying of a prescription drug.</text>
</clause></subparagraph></paragraph><paragraph id="ID82F1EABEF6C1424E82A69F95B398EB20"><enum>(5)</enum><header>Enforcement</header>
<subparagraph id="IDAA2D22C6C4C449CD9DC36845A7DE8E3C"><enum>(A)</enum><header>Unfair or
deceptive Act or practice</header><text>A violation of this subsection shall be
treated as a violation of a rule defining an unfair or deceptive act or
practice prescribed under section 18(a)(1)(B) of the
<act-name parsable-cite="FTCA">Federal Trade Commission Act</act-name> (15
U.S.C. 57a(a)(1)(B)).</text>
</subparagraph><subparagraph id="ID7A5BAD682B434F7C90EB46715C90E58F"><enum>(B)</enum><header>Actions by the
commission</header><text>The Federal Trade Commission—</text>
<clause id="ID3FE652BA253A4DD48F952531A75E136B"><enum>(i)</enum><text>shall enforce
this subsection in the same manner, by the same means, and with the same
jurisdiction, powers, and duties as though all applicable terms and provisions
of the <act-name parsable-cite="FTCA">Federal Trade Commission Act</act-name>
(15 U.S.C. 41 et seq.) were incorporated into and made a part of this section;
and</text>
</clause><clause id="ID32AB20F57001458CBB6776A91F8947C6"><enum>(ii)</enum><text>may seek
monetary relief threefold the damages sustained, in addition to any other
remedy available to the Federal Trade Commission under the
<act-name parsable-cite="FTCA">Federal Trade Commission Act</act-name> (15
U.S.C. 41 et seq.).</text>
</clause></subparagraph></paragraph><paragraph id="ID33D4AD83FF7848C79784C6AD0FEDA4A2"><enum>(6)</enum><header>Actions by
States</header>
<subparagraph id="IDEF27844036D340299495F733AFA261AF"><enum>(A)</enum><header>In
general</header>
<clause id="IDF014B2DAD84E451DBD5813ACAA7DD6E9"><enum>(i)</enum><header>Civil
actions</header><text>In any case in which the attorney general of a State has
reason to believe that an interest of the residents of that State have been
adversely affected by any manufacturer that violates paragraph (1), the
attorney general of a State may bring a civil action on behalf of the residents
of the State, and persons doing business in the State, in a district court of
the United States of appropriate jurisdiction to—</text>
<subclause id="IDC6B1BAABBC004B6498F0CC54FBCF9D27"><enum>(I)</enum><text>enjoin that
practice;</text>
</subclause><subclause id="ID4405808ACF044324B08F53D43B848029"><enum>(II)</enum><text>enforce
compliance with this subsection;</text>
</subclause><subclause id="IDF1897699C1FB4DDA9D7AC7D1D2DE9745"><enum>(III)</enum><text>obtain damages,
restitution, or other compensation on behalf of residents of the State and
persons doing business in the State, including threefold the damages; or</text>
</subclause><subclause id="IDC648902245BB488A80075BEB333FA872"><enum>(IV)</enum><text>obtain such
other relief as the court may consider to be appropriate.</text>
</subclause></clause><clause id="ID135C7ECC7CA2459B8B89610F3296298E"><enum>(ii)</enum><header>Notice</header>
<subclause id="ID4E2C21B6246A4616A3DDA99008D3730C"><enum>(I)</enum><header>In
general</header><text>Before filing an action under clause (i), the attorney
general of the State involved shall provide to the Federal Trade
Commission—</text>
<item id="IDE339C0C4EEC2409CB5B907AD12A3A9E5"><enum>(aa)</enum><text>written notice
of that action; and</text>
</item><item id="ID1EC3740BB0E440669A97E5DB3C54C278"><enum>(bb)</enum><text>a
copy of the complaint for that action.</text>
</item></subclause><subclause id="IDABD7005DB88147378AC15011576E0BCF"><enum>(II)</enum><header>Exemption</header><text>Subclause
(I) shall not apply with respect to the filing of an action by an attorney
general of a State under this paragraph, if the attorney general determines
that it is not feasible to provide the notice described in that subclause
before filing of the action. In such case, the attorney general of a State
shall provide notice and a copy of the complaint to the Federal Trade
Commission at the same time as the attorney general files the action.</text>
</subclause></clause></subparagraph><subparagraph id="IDCA96844ED8404271AE80F10AE990BE92"><enum>(B)</enum><header>Intervention</header>
<clause id="ID9957A7B122694A7EA8A5A1195C86CFD0"><enum>(i)</enum><header>In
general</header><text>On receiving notice under subparagraph (A)(ii), the
Federal Trade Commission shall have the right to intervene in the action that
is the subject of the notice.</text>
</clause><clause id="IDE2C8E8F327FA4F6C881496F60C84E22D"><enum>(ii)</enum><header>Effect of
intervention</header><text>If the Federal Trade Commission intervenes in an
action under subparagraph (A), it shall have the right—</text>
<subclause id="ID4E423DB407524E97BEC21EF8EA627A80"><enum>(I)</enum><text>to be heard with
respect to any matter that arises in that action; and</text>
</subclause><subclause id="ID893B9F8B4B9940A2B8A04947F7B5CBF2"><enum>(II)</enum><text>to file a
petition for appeal.</text>
</subclause></clause></subparagraph><subparagraph id="ID5C021B8B65F3478D8E7646A806CF90D7"><enum>(C)</enum><header>Construction</header><text>For
purposes of bringing any civil action under subparagraph (A), nothing in this
subsection shall be construed to prevent an attorney general of a State from
exercising the powers conferred on the attorney general by the laws of that
State to—</text>
<clause id="IDD646FA371C1D4ABDA782446E4804F6F5"><enum>(i)</enum><text>conduct
investigations;</text>
</clause><clause id="IDD0DFD4F5B2B742DBBD546094DF7B0FDB"><enum>(ii)</enum><text>administer oaths
or affirmations; or</text>
</clause><clause id="ID99639AEC2E0A44BA95084E0B95E870D7"><enum>(iii)</enum><text>compel the
attendance of witnesses or the production of documentary and other
evidence.</text>
</clause></subparagraph><subparagraph id="ID7D2CB49845224C4982B6FCF744CC344C"><enum>(D)</enum><header>Actions by the
commission</header><text>In any case in which an action is instituted by or on
behalf of the Federal Trade Commission for a violation of paragraph (1), a
State may not, during the pendency of that action, institute an action under
subparagraph (A) for the same violation against any defendant named in the
complaint in that action.</text>
</subparagraph><subparagraph id="ID3B6EC79C8EAA4133BA49446733366031"><enum>(E)</enum><header>Venue</header><text>Any
action brought under subparagraph (A) may be brought in the district court of
the United States that meets applicable requirements relating to venue under
section 1391 of title 28, United States Code.</text>
</subparagraph><subparagraph id="IDEC9AACEB130C45928A408BE8306D8AFE"><enum>(F)</enum><header>Service of
process</header><text>In an action brought under subparagraph (A), process may
be served in any district in which the defendant—</text>
<clause id="ID80BAA594FC814D4A99CA8C567C614C61"><enum>(i)</enum><text>is an inhabitant;
or</text>
</clause><clause id="ID012701F5B9AD4014A4559B49FB0E9F32"><enum>(ii)</enum><text>may be
found.</text>
</clause></subparagraph><subparagraph id="ID70DFC4D863934A56A2B29D9489664166"><enum>(G)</enum><header>Measurement of
damages</header><text>In any action under this paragraph to enforce a cause of
action under this subsection in which there has been a determination that a
defendant has violated a provision of this subsection, damages may be proved
and assessed in the aggregate by statistical or sampling methods, by the
computation of illegal overcharges or by such other reasonable system of
estimating aggregate damages as the court in its discretion may permit without
the necessity of separately proving the individual claim of, or amount of
damage to, persons on whose behalf the suit was brought.</text>
</subparagraph><subparagraph id="ID0DA10338DCD94E4D824B935775569726"><enum>(H)</enum><header>Exclusion on
duplicative relief</header><text>The district court shall exclude from the
amount of monetary relief awarded in an action under this paragraph brought by
the attorney general of a State any amount of monetary relief which duplicates
amounts which have been awarded for the same injury.</text>
</subparagraph></paragraph><paragraph id="ID373AA165AB8F45569DEDF35FFEA736DD"><enum>(7)</enum><header>Effect on
antitrust laws</header><text>Nothing in this subsection shall be construed to
modify, impair, or supersede the operation of the antitrust laws. For the
purpose of this subsection, the term <term>antitrust laws</term> has the
meaning given it in the first section of the <act-name parsable-cite="CLAY">Clayton Act</act-name>, except that it includes section 5
of the <act-name parsable-cite="FTCA">Federal Trade Commission Act</act-name>
to the extent that such section 5 applies to unfair methods of
competition.</text>
</paragraph><paragraph id="ID5A9D61CC585148AA8FD48DE32F6FC272"><enum>(8)</enum><header>Manufacturer</header><text>In
this subsection, the term <term>manufacturer</term> means any entity, including
any affiliate or licensee of that entity, that is engaged in—</text>
<subparagraph id="ID4C817B4F38CB4AFDB5A487449524179C"><enum>(A)</enum><text>the production,
preparation, propagation, compounding, conversion, or processing of a
prescription drug, either directly or indirectly by extraction from substances
of natural origin, or independently by means of chemical synthesis, or by a
combination of extraction and chemical synthesis; or</text>
</subparagraph><subparagraph id="ID6C32E9FADF884F5F89E021EB9B2D407D"><enum>(B)</enum><text>the packaging,
repackaging, labeling, relabeling, or distribution of a prescription
drug.</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDEDE7F8F368EE491582030D423C66B8C5"><enum>(2)</enum><header>Prohibited
Acts</header><text>The <act-name parsable-cite="FFDCA">Federal Food, Drug, and
Cosmetic Act</act-name> is amended—</text>
<subparagraph id="ID8517332672D940D48C2C0F374BE13907"><enum>(A)</enum><text>in section 301
(21 U.S.C. 331), by striking paragraph (aa) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="ID2DC7C4537E034C92B7D5F2A739C0199C" style="OLC">
<subsection id="id231387ECFB634F3D8ACEA898C11B0A4D"><enum>(aa)</enum><paragraph commented="no" display-inline="yes-display-inline" id="id6EA74560F9994126934E470FE0228AE3"><enum>(1)</enum><text>The sale or trade by a
pharmacist, or by a business organization of which the pharmacist is a part, of
a qualifying drug that under section 804(a)(2)(A) was imported by the
pharmacist, other than—</text>
<subparagraph id="id2C4D962739084DB6B68F6764B155647F" indent="up1"><enum>(A)</enum><text>a sale at retail made pursuant to
dispensing the drug to a customer of the pharmacist or organization; or</text>
</subparagraph><subparagraph id="id78D73A4D89074904BDA7CF95EBA3F976" indent="up1"><enum>(B)</enum><text>a sale or trade of the drug to a
pharmacy or a wholesaler registered to import drugs under section 804.</text>
</subparagraph></paragraph><paragraph id="id2CFF3FA7060048ACBF2506B964F6C6F1" indent="up1"><enum>(2)</enum><text>The sale or trade by an individual of
a qualifying drug that under section 804(a)(2)(B) was imported by the
individual.</text>
</paragraph><paragraph id="idF60001D0EB004C08A606A1F0981B2ACA" indent="up1"><enum>(3)</enum><text>The making of a materially false,
fictitious, or fraudulent statement or representation, or a material omission,
in a notice under clause (i) of section 804(g)(2)(B) or in an application
required under section 804(g)(2)(F), or the failure to submit such a notice or
application.</text>
</paragraph><paragraph id="id4C510A02C03B4B199D26DE9BB8DDA541" indent="up1"><enum>(4)</enum><text>The importation of a drug in
violation of a registration condition or other requirement under section 804,
the falsification of any record required to be maintained, or provided to the
Secretary, under such section, or the violation of any registration condition
or other requirement under such
section.</text>
</paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="ID47418579B52D422BB0D288784D6B2F96"><enum>(B)</enum><text>in section 303(a)
(21 U.S.C. 333(a)), by striking paragraph (6) and inserting the
following:</text>
<quoted-block id="ID6EA58B3CC6F5441FADB870C5BECD6B36">
<paragraph id="ID84C090A527C745A18F6FB4AC41738106" indent="up1"><enum>(6)</enum><text>Notwithstanding subsection (a), any
person that knowingly violates section 301(i) (2) or (3) or section 301(aa)(4)
shall be imprisoned not more than 10 years, or fined in accordance with title
18, United States Code, or
both.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="ID45372B47605F48B690D9B39CF7A042FA"><enum>(3)</enum><header>Amendment of
certain provisions</header>
<subparagraph id="ID24F2163DEF3345F78DEB16E054643ECD"><enum>(A)</enum><header>In
general</header><text>Section 801 of the <act-name parsable-cite="FFDCA">Federal Food, Drug, and Cosmetic Act</act-name> (21
U.S.C. 381) is amended by striking subsection (g) and inserting the
following:</text>
<quoted-block act-name="Federal Food, Drug, and Cosmetic Act" id="IDFDC783AECA364CB987B528B0EC1BAB43">
<subsection id="ID4D620477605448C6BC81E55FA606F64D"><enum>(g)</enum><text>With respect to a
prescription drug that is imported or offered for import into the United States
by an individual who is not in the business of such importation, that is not
shipped by a registered exporter under section 804, and that is refused
admission under subsection (a), the Secretary shall notify the individual
that—</text>
<paragraph id="IDC60D06484E524693A83D9A299D4C6BC9"><enum>(1)</enum><text>the drug has been
refused admission because the drug was not a lawful import under section
804;</text>
</paragraph><paragraph id="ID3A9E20D47D404BD4B68A86C697F6B7EE"><enum>(2)</enum><text>the drug is not
otherwise subject to a waiver of the requirements of subsection (a);</text>
</paragraph><paragraph id="ID052740FFB7574D02AFF09822DD7D84D2"><enum>(3)</enum><text>the individual
may under section 804 lawfully import certain prescription drugs from exporters
registered with the Secretary under section 804; and</text>
</paragraph><paragraph id="ID45E3FA1806424CCB836A752CB4FC1E75"><enum>(4)</enum><text>the individual
can find information about such importation, including a list of registered
exporters, on the Internet website of the Food and Drug Administration or
through a toll-free telephone number required under section
804.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="ID21949B394C5D4B6CA5B0F47564F36E3B"><enum>(B)</enum><header>Establishment
registration</header><text>Section 510(i) of the
<act-name parsable-cite="FFDCA">Federal Food, Drug, and Cosmetic Act</act-name>
(21 U.S.C. 360(i)) is amended in paragraph (1) by inserting after <quote>import
into the United States</quote> the following: <quote>, including a drug that
is, or may be, imported or offered for import into the United States under
section 804,</quote>.</text>
</subparagraph><subparagraph id="ID28B5EEADAF4D4E29A052479C33A2CE10"><enum>(C)</enum><header>Effective
date</header><text>The amendments made by this subsection shall take effect on
the date that is 90 days after the date of enactment of this Act.</text>
</subparagraph></paragraph><paragraph id="ID26EF669298534FB6840FF726772662DB"><enum>(4)</enum><header>Exhaustion</header>
<subparagraph id="ID6D092A8CC58C44F89B16F069982FE79B"><enum>(A)</enum><header>In
general</header><text>Section 271 of title 35, United States Code, is
amended—</text>
<clause id="ID6CE34D4D5C464284A9722251EFB0BC8E"><enum>(i)</enum><text>by
redesignating subsections (h) and (i) as (i) and (j), respectively; and</text>
</clause><clause id="IDE288553774834F328F912B6FC4DF187E"><enum>(ii)</enum><text>by
inserting after subsection (g) the following:</text>
<quoted-block id="ID3432FF7B985B45E98CA8010DAB3F6042">
<subsection id="ID69CA5CA37DB24441BFE2837B7148ABB2"><enum>(h)</enum><text>It shall not be
an act of infringement to use, offer to sell, or sell within the United States
or to import into the United States any patented invention under section 804 of
the <act-name parsable-cite="FFDCA">Federal Food, Drug, and Cosmetic
Act</act-name> that was first sold abroad by or under authority of the owner or
licensee of such
patent.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="IDBEEFD143DCD44C628C8E164BFE4CBAB1"><enum>(B)</enum><header>Rule of
construction</header><text>Nothing in the amendment made by subparagraph (A)
shall be construed to affect the ability of a patent owner or licensee to
enforce their patent, subject to such amendment.</text>
</subparagraph></paragraph><paragraph id="ID417999FF678B4258AD37096A8F9FE06D"><enum>(5)</enum><header>Effect of
Section <enum-in-header>804</enum-in-header></header>
<subparagraph id="ID49A11BFFB3104785A6B5C3CC5F50AAF0"><enum>(A)</enum><header>In
general</header><text>Section 804 of the <act-name parsable-cite="FFDCA">Federal Food, Drug, and Cosmetic Act</act-name>, as added
by subsection (a), shall permit the importation of qualifying drugs (as defined
in such section 804) into the United States without regard to the status of the
issuance of implementing regulations—</text>
<clause id="ID02A5B28522F449B29A2DF1BA21FDC5FA"><enum>(i)</enum><text>from exporters
registered under such section 804 on the date that is 90 days after the date of
enactment of this Act; and</text>
</clause><clause id="ID03ECF5B2E10D429C9621E8379BCF02ED"><enum>(ii)</enum><text>from permitted
countries, as defined in such section 804, by importers registered under such
section 804 on the date that is 1 year after the date of enactment of this
Act.</text>
</clause></subparagraph><subparagraph id="IDD4E9B81D04AB4F5085C2B865E82E88B3"><enum>(B)</enum><header>Review of
registration by certain exporters</header>
<clause id="ID009CE89C347E49ACB30B49BBD103CD06"><enum>(i)</enum><header>Review
priority</header><text>In the review of registrations submitted under
subsection (b) of such section 804, registrations submitted by entities in
Canada that are significant exporters of prescription drugs to individuals in
the United States as of the date of enactment of this Act will have priority
during the 90-day period that begins on such date of enactment.</text>
</clause><clause id="IDBAF2352920914405868300A60490F119"><enum>(ii)</enum><header>Period for
review</header><text>During such 90-day period, the reference in subsection
(b)(2)(A) of such section 804 to 90 days (relating to approval or disapproval
of registrations) is, as applied to such entities, deemed to be 30 days.</text>
</clause><clause id="ID72F1AC71474B4C01B142C358F3C700D5"><enum>(iii)</enum><header>Limitation</header><text>That
an exporter in Canada exports, or has exported, prescription drugs to
individuals in the United States on or before the date that is 90 days after
the date of enactment of this Act shall not serve as a basis, in whole or in
part, for disapproving a registration under such section 804 from the
exporter.</text>
</clause><clause id="IDB33AD014A5CE4F05A4FD36AC83A71432"><enum>(iv)</enum><header>First year
limit on number of exporters</header><text>During the 1-year period beginning
on the date of enactment of this Act, the Secretary of Health and Human
Services (referred to in this section as the <term>Secretary</term>) may limit
the number of registered exporters under such section 804 to not less than 50,
so long as the Secretary gives priority to those exporters with demonstrated
ability to process a high volume of shipments of drugs to individuals in the
United States.</text>
</clause><clause id="ID534F529B739E49FE9B9F70E5A8EF4739"><enum>(v)</enum><header>Second year
limit on number of exporters</header><text>During the 1-year period beginning
on the date that is 1 year after the date of enactment of this Act, the
Secretary may limit the number of registered exporters under such section 804
to not less than 100, so long as the Secretary gives priority to those
exporters with demonstrated ability to process a high volume of shipments of
drugs to individuals in the United States.</text>
</clause><clause id="ID6BA04586A2464F54BA04C749E7C80797"><enum>(vi)</enum><header>Further limit
on number of exporters</header><text>During any 1-year period beginning on a
date that is 2 or more years after the date of enactment of this Act, the
Secretary may limit the number of registered exporters under such section 804
to not less than 25 more than the number of such exporters during the previous
1-year period, so long as the Secretary gives priority to those exporters with
demonstrated ability to process a high volume of shipments of drugs to
individuals in the United States.</text>
</clause></subparagraph><subparagraph id="ID67E5D3E1CA0840248838EDA75074E507"><enum>(C)</enum><header>Limits on
number of importers</header>
<clause id="IDDE06E13595B34EDD84E86FA49122D549"><enum>(i)</enum><header>First year
limit on number of importers</header><text>During the 1-year period beginning
on the date that is 1 year after the date of enactment of this Act, the
Secretary may limit the number of registered importers under such section 804
to not less than 100 (of which at least a significant number shall be groups of
pharmacies, to the extent feasible given the applications submitted by such
groups), so long as the Secretary gives priority to those importers with
demonstrated ability to process a high volume of shipments of drugs imported
into the United States.</text>
</clause><clause id="IDFA7975178DC9474B8843C74F9BB41EAF"><enum>(ii)</enum><header>Second year
limit on number of importers</header><text>During the 1-year period beginning
on the date that is 2 years after the date of enactment of this Act, the
Secretary may limit the number of registered importers under such section 804
to not less than 200 (of which at least a significant number shall be groups of
pharmacies, to the extent feasible given the applications submitted by such
groups), so long as the Secretary gives priority to those importers with
demonstrated ability to process a high volume of shipments of drugs into the
United States.</text>
</clause><clause id="ID892D488FB680419C98CB155A632386C4"><enum>(iii)</enum><header>Further limit
on number of importers</header><text>During any 1-year period beginning on a
date that is 3 or more years after the date of enactment of this Act, the
Secretary may limit the number of registered importers under such section 804
to not less than 50 more (of which at least a significant number shall be
groups of pharmacies, to the extent feasible given the applications submitted
by such groups) than the number of such importers during the previous 1-year
period, so long as the Secretary gives priority to those importers with
demonstrated ability to process a high volume of shipments of drugs to the
United States.</text>
</clause></subparagraph><subparagraph id="ID4F62EF3A20FB40DFB4643AC65342A2C5"><enum>(D)</enum><header>Notices for
drugs for import from Canada</header><text>The notice with respect to a
qualifying drug introduced for commercial distribution in Canada as of the date
of enactment of this Act that is required under subsection (g)(2)(B)(i) of such
section 804 shall be submitted to the Secretary not later than 30 days after
the date of enactment of this Act if—</text>
<clause id="IDEF13C53B8E1047BCBD93533511BCB4FD"><enum>(i)</enum><text>the
U.S. label drug (as defined in such section 804) for the qualifying drug is 1
of the 100 prescription drugs with the highest dollar volume of sales in the
United States based on the 12 calendar month period most recently completed
before the date of enactment of this Act; or</text>
</clause><clause id="ID3C8C43800AC447FE896329240D18FB39"><enum>(ii)</enum><text>the notice is a
notice under subsection (g)(2)(B)(i)(II) of such section 804.</text>
</clause></subparagraph><subparagraph id="ID4815DC1199EB403EB13E50D7218F80C5"><enum>(E)</enum><header>Notice for
drugs for import from other countries</header><text>The notice with respect to
a qualifying drug introduced for commercial distribution in a permitted country
other than Canada as of the date of enactment of this Act that is required
under subsection (g)(2)(B)(i) of such section 804 shall be submitted to the
Secretary not later than 180 days after the date of enactment of this Act
if—</text>
<clause id="ID7F7130B12F0B4B9B8393B108DEAC5E10"><enum>(i)</enum><text>the
U.S. label drug for the qualifying drug is 1 of the 100 prescription drugs with
the highest dollar volume of sales in the United States based on the 12
calendar month period that is first completed on the date that is 120 days
after the date of enactment of this Act; or</text>
</clause><clause id="IDF4B30B0F84104910B8B8C1130CDC05E3"><enum>(ii)</enum><text>the notice is a
notice under subsection (g)(2)(B)(i)(II) of such section 804.</text>
</clause></subparagraph><subparagraph id="ID4FFA2B73DA3E4E8096BD7F9243F9D225"><enum>(F)</enum><header>Notice for
other drugs for import</header>
<clause id="ID8E7F30F07DA948DC896EC68F63F4FD0D"><enum>(i)</enum><header>Guidance on
submission dates</header><text>The Secretary shall by guidance establish a
series of submission dates for the notices under subsection (g)(2)(B)(i) of
such section 804 with respect to qualifying drugs introduced for commercial
distribution as of the date of enactment of this Act and that are not required
to be submitted under paragraph (4) or (5).</text>
</clause><clause id="IDCA721A23AD6F453098F44F075D1D74A3"><enum>(ii)</enum><header>Consistent and
efficient use of resources</header><text>The Secretary shall establish the
dates described under subparagraph (A) so that such notices described under
subparagraph (A) are submitted and reviewed at a rate that allows consistent
and efficient use of the resources and staff available to the Secretary for
such reviews. The Secretary may condition the requirement to submit such a
notice, and the review of such a notice, on the submission by a registered
exporter or a registered importer to the Secretary of a notice that such
exporter or importer intends to import such qualifying drug to the United
States under such section 804.</text>
</clause><clause id="ID0889A45A3CD44F7297F5C83F7354BBBA"><enum>(iii)</enum><header>Priority for
drugs with higher sales</header><text>The Secretary shall establish the dates
described under subparagraph (A) so that the Secretary reviews the notices
described under such subparagraph with respect to qualifying drugs with higher
dollar volume of sales in the United States before the notices with respect to
drugs with lower sales in the United States.</text>
</clause></subparagraph><subparagraph id="IDAE0626285C49465C8BCE91CAB1D2E00F"><enum>(G)</enum><header>Notices for
drugs approved after effective date</header><text>The notice required under
subsection (g)(2)(B)(i) of such section 804 for a qualifying drug first
introduced for commercial distribution in a permitted country (as defined in
such section 804) after the date of enactment of this Act shall be submitted to
and reviewed by the Secretary as provided under subsection (g)(2)(B) of such
section 804, without regard to paragraph (4), (5), or (6).</text>
</subparagraph><subparagraph id="ID35DAC34EBB82449F9FECDBE6158CD7B5"><enum>(H)</enum><header>Report</header><text>Beginning
with the first full fiscal year after the date of enactment of this Act, not
later than 90 days after the end of each fiscal year during which the Secretary
reviews a notice referred to in subparagraph (D), (E), or (F), the Secretary
shall submit a report to Congress concerning the progress of the Food and Drug
Administration in reviewing the notices referred to in such
subparagraphs.</text>
</subparagraph><subparagraph id="IDFBC0C33A4ABE49769A1BCADF1BB43114"><enum>(I)</enum><header>User
fees</header>
<clause id="ID0795003A788341DCA2A41720E9A64D5E"><enum>(i)</enum><header>Exporters</header><text>When
establishing an aggregate total of fees to be collected from exporters under
subsection (f)(2) of such section 804, the Secretary shall, under subsection
(f)(3)(C)(i) of such section 804, estimate the total price of drugs imported
under subsection (a) of such section 804 into the United States by registered
exporters during the first fiscal year in which this Act takes effect to be an
amount equal to the amount which bears the same ratio to $1,000,000,000 as the
number of days in such fiscal year during which this Act is effective bears to
365.</text>
</clause><clause id="ID561929F729D744BD98C06F8FF66B949B"><enum>(ii)</enum><header>Importers</header><text>When
establishing an aggregate total of fees to be collected from importers under
subsection (e)(2) of such section 804, the Secretary shall, under subsection
(e)(3)(C)(i) of such section 804, estimate the total price of drugs imported
under subsection (a) of such section 804 into the United States by registered
importers during—</text>
<subclause id="ID92A5655173FD4A3DB6F4B25BDA5792D5"><enum>(I)</enum><text>the first fiscal
year in which this Act takes effect to be an amount equal to the amount which
bears the same ratio to $1,000,000,000 as the number of days in such fiscal
year during which this Act is effective bears to 365; and</text>
</subclause><subclause id="IDAB9CD7FED5DE43969340AA9543EB4FB5"><enum>(II)</enum><text>the second
fiscal year in which this Act is in effect to be $3,000,000,000.</text>
</subclause></clause><clause id="ID157876643BED43DA991DFC929E9DC221"><enum>(iii)</enum><header>Second year
adjustment</header>
<subclause id="ID6955351C625C4255B8E3EE0844AFAD81"><enum>(I)</enum><header>Reports</header><text>Not
later than February 20 of the second fiscal year in which this Act is in
effect, registered importers shall report to the Secretary the total price and
the total volume of drugs imported to the United States by the importer during
the 4-month period from October 1 through January 31 of such fiscal
year.</text>
</subclause><subclause id="ID610A61F86A9F4D71BDA6F9A2D14FB93B"><enum>(II)</enum><header>Reestimate</header><text>Notwithstanding
subsection (e)(3)(C)(ii) of such section 804 or subparagraph (B), the Secretary
shall reestimate the total price of qualifying drugs imported under subsection
(a) of such section 804 into the United States by registered importers during
the second fiscal year in which this Act is in effect. Such reestimate shall be
equal to—</text>
<item id="ID5C2880F089BD4BB7916CCA5CB81452EC"><enum>(aa)</enum><text>the
total price of qualifying drugs imported by each importer as reported under
clause (i); multiplied by</text>
</item><item id="ID9072CECAD0AE480382DED84214575C43"><enum>(bb)</enum><text>3.</text>
</item></subclause><subclause id="IDD42A783BD1ED4C1EA70D9765D49D7E67"><enum>(III)</enum><header>Adjustment</header><text>The
Secretary shall adjust the fee due on April 1 of the second fiscal year in
which this Act is in effect, from each importer so that the aggregate total of
fees collected under subsection (e)(2) for such fiscal year does not exceed the
total price of qualifying drugs imported under subsection (a) of such section
804 into the United States by registered importers during such fiscal year as
reestimated under clause (ii).</text>
</subclause></clause><clause id="idC6BC8E2AAF0144D19053E48819BAC5D1"><enum>(iv)</enum><header>Failure to pay
fees</header><text>Notwithstanding any other provision of this subsection, the
Secretary may prohibit a registered importer or exporter that is required to
pay user fees under subsection (e) or (f) of such section 804 and that fails to
pay such fees within 30 days after the date on which it is due, from importing
or offering for importation a qualifying drug under such section 804 until such
fee is paid.</text>
</clause><clause id="ID2AE96FFFF25440FD8FA6435191457D74"><enum>(v)</enum><header>Annual
report</header>
<subclause id="ID514B74DD411D48E088932F76FB0DAB49"><enum>(I)</enum><header>Food and Drug
Administration</header><text>Not later than 180 days after the end of each
fiscal year during which fees are collected under subsection (e), (f), or
(g)(2)(B)(iv) of such section 804, the Secretary shall prepare and submit to
the House of Representatives and the Senate a report on the implementation of
the authority for such fees during such fiscal year and the use, by the Food
and Drug Administration, of the fees collected for the fiscal year for which
the report is made and credited to the Food and Drug Administration.</text>
</subclause><subclause id="ID598830ADA3F04BD8905016380BF39782"><enum>(II)</enum><header>Customs and
border control</header><text>Not later than 180 days after the end of each
fiscal year during which fees are collected under subsection (e) or (f) of such
section 804, the Secretary of Homeland Security, in consultation with the
Secretary of the Treasury, shall prepare and submit to the House of
Representatives and the Senate a report on the use, by the Bureau of Customs
and Border Protection, of the fees, if any, transferred by the Secretary to the
Bureau of Customs and Border Protection for the fiscal year for which the
report is made.</text>
</subclause></clause></subparagraph><subparagraph id="id14AA613477564352BCB8C036B5E46286"><enum>(J)</enum><header>Special rule
regarding importation by individuals</header>
<clause id="id9EAC0237A3A44BB9BA0F20E9C34F5848"><enum>(i)</enum><header>In
general</header><text>Notwithstanding any provision of this Act (or an
amendment made by this Act), the Secretary shall expedite the designation of
any additional countries from which an individual may import a qualifying drug
into the United States under such section 804 if any action implemented by the
Government of Canada has the effect of limiting or prohibiting the importation
of qualifying drugs into the United States from Canada.</text>
</clause><clause id="idFCD960C7A6F843D88CBA38FA989DF126"><enum>(ii)</enum><header>Timing and
criteria</header><text>The Secretary shall designate such additional countries
under clause (i)—</text>
<subclause id="id958740709CAA462B828DE71FF2D79779"><enum>(I)</enum><text>not later than 6
months after the date of the action by the Government of Canada described under
such subparagraph; and</text>
</subclause><subclause id="idCA53D36A6B514145942F400CE1FC9FE8"><enum>(II)</enum><text>using the
criteria described under subsection (a)(4)(D)(i)(II) of such section
804.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="IDF551245FCA1D4798BC30096506C9FEEA"><enum>(6)</enum><header>Implementation
of Section <enum-in-header>804</enum-in-header></header>
<subparagraph id="ID7DE21F5828524BE2977B0CDA625F6D25"><enum>(A)</enum><header>Interim
rule</header><text>The Secretary may promulgate an interim rule for
implementing section 804 of the <act-name parsable-cite="FFDCA">Federal Food,
Drug, and Cosmetic Act</act-name>, as added by subsection (a) of this
section.</text>
</subparagraph><subparagraph id="ID945809C415FD48C4A18AE67AE3322F50"><enum>(B)</enum><header>No notice of
proposed rulemaking</header><text>The interim rule described under paragraph
(1) may be developed and promulgated by the Secretary without providing general
notice of proposed rulemaking.</text>
</subparagraph><subparagraph id="IDF1FA44FC556B4EA79FA9B6EFD27FA95D"><enum>(C)</enum><header>Final
rule</header><text>Not later than 1 year after the date on which the Secretary
promulgates an interim rule under subparagraph (A), the Secretary shall, in
accordance with procedures under section 553 of title 5, United States Code,
promulgate a final rule for implementing such section 804, which may
incorporate by reference provisions of the interim rule provided for under
subparagraph (A), to the extent that such provisions are not modified.</text>
</subparagraph></paragraph><paragraph id="IDD159A99A7A684C06AA6C5485C8096FD0"><enum>(7)</enum><header>Consumer
education</header><text>The Secretary shall carry out activities that educate
consumers—</text>
<subparagraph id="IDBD80008964204A7BBDF5179D331512AD"><enum>(A)</enum><text>with regard to
the availability of qualifying drugs for import for personal use from an
exporter registered with and approved by the Food and Drug Administration under
section 804 of the <act-name parsable-cite="FFDCA">Federal Food, Drug, and
Cosmetic Act</act-name>, as added by this section, including information on how
to verify whether an exporter is registered and approved by use of the Internet
website of the Food and Drug Administration and the toll-free telephone number
required by this Act;</text>
</subparagraph><subparagraph id="IDF49EE0D2AA1B4AAA978778C0AC627FF4"><enum>(B)</enum><text>that drugs that
consumers attempt to import from an exporter that is not registered with and
approved by the Food and Drug Administration can be seized by the United States
Customs Service and destroyed, and that such drugs may be counterfeit,
unapproved, unsafe, or ineffective;</text>
</subparagraph><subparagraph id="idD92E88BF2C86463A994A77DF9DB99A1A"><enum>(C)</enum><text>with regard to
the suspension and termination of any registration of a registered importer or
exporter under such section 804; and</text>
</subparagraph><subparagraph id="ID5A6343A483A2440E911F1E0629191DE2"><enum>(D)</enum><text>with regard to
the availability at domestic retail pharmacies of qualifying drugs imported
under such section 804 by domestic wholesalers and pharmacies registered with
and approved by the Food and Drug Administration.</text>
</subparagraph></paragraph><paragraph id="ID0CE3BCE5AB644AFABD53B45594D5C977"><enum>(8)</enum><header>Effect on
administration practices</header><text>Notwithstanding any provision of this
Act (and the amendments made by this Act), the practices and policies of the
Food and Drug Administration and Bureau of Customs and Border Protection, in
effect on January 1, 2004, with respect to the importation of prescription
drugs into the United States by an individual, on the person of such
individual, for personal use, shall remain in effect.</text>
</paragraph><paragraph id="id81FC2F8343A6427996C56C8F16215E5F"><enum>(9)</enum><header>Report to
Congress</header><text>The Federal Trade Commission shall, on an annual basis,
submit to Congress a report that describes any action taken during the period
for which the report is being prepared to enforce the provisions of section
804(n) of the Federal Food, Drug, and Cosmetic Act (as added by this Act),
including any pending investigations or civil actions under such
section.</text>
</paragraph></subsection><subsection id="ID811EBDFE2365427EB22EA69F8AFF79A5"><enum>(e)</enum><header>Disposition of
certain drugs denied admission into United States</header>
<paragraph id="IDEB5C9ECFDF49462EBF5E1456E1128D41"><enum>(1)</enum><header>In
general</header><text>Chapter VIII of the <act-name parsable-cite="FFDCA">Federal Food, Drug, and Cosmetic Act</act-name> (21
U.S.C. 381 et seq.), as amended by section 4, is further amended by adding at
the end the following section:</text>
<quoted-block act-name="Federal Food, Drug, and Cosmetic Act" id="ID0C5DF90289494C79814A05091048BB29">
<section id="ID662BB921E5974A619ECB4EF0F6A79CAD"><enum>805.</enum><header>Disposition of
certain drugs denied admission</header>
<subsection id="ID4DA088F7111A4A8EB793126FF9BBE8BA"><enum>(a)</enum><header>In
general</header><text>The Secretary of Homeland Security shall deliver to the
Secretary a shipment of drugs that is imported or offered for import into the
United States if—</text>
<paragraph id="IDF0E930946366473C941DEBEF1B5EF79E"><enum>(1)</enum><text>the shipment has
a declared value of less than $10,000; and</text>
</paragraph><paragraph id="IDC08AE3A669D6405DA89975CCA3896DE1"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="IDB152C24466224BB5A187DC285402C2C4"><enum>(A)</enum><text>the shipping container
for such drugs does not bear the markings required under section 804(d)(2);
or</text>
</subparagraph><subparagraph id="ID67F9C8D0D98D43BB8EB701C3427856DA" indent="up1"><enum>(B)</enum><text>the Secretary has requested delivery
of such shipment of drugs.</text>
</subparagraph></paragraph></subsection><subsection id="IDC18CBA9B7B0E4A7DAE70A9792277DDF2"><enum>(b)</enum><header>No bond or
export</header><text>Section 801(b) does not authorize the delivery to the
owner or consignee of drugs delivered to the Secretary under subsection (a)
pursuant to the execution of a bond, and such drugs may not be exported.</text>
</subsection><subsection id="ID4942D589D2EA412984913C504E12AD0E"><enum>(c)</enum><header>Destruction of
violative shipment</header><text>The Secretary shall destroy a shipment of
drugs delivered by the Secretary of Homeland Security to the Secretary under
subsection (a) if—</text>
<paragraph id="IDC555262C17C24B71BD1E1CE0BB34DBF9"><enum>(1)</enum><text>in the case of
drugs that are imported or offered for import from a registered exporter under
section 804, the drugs are in violation of any standard described in section
804(g)(5); or</text>
</paragraph><paragraph id="ID05AE7AD558904919AA9DC1610E3CBDBE"><enum>(2)</enum><text>in the case of
drugs that are not imported or offered for import from a registered exporter
under section 804, the drugs are in violation of a standard referred to in
section 801(a) or 801(d)(1).</text>
</paragraph></subsection><subsection id="ID7C26B2FBD320415A9BBCBD61C6DD76A9"><enum>(d)</enum><header>Certain
procedures</header>
<paragraph id="ID007F297FC4894BA4AEEB331EAC6FF74C"><enum>(1)</enum><header>In
general</header><text>The delivery and destruction of drugs under this section
may be carried out without notice to the importer, owner, or consignee of the
drugs except as required by section 801(g) or section 804(i)(2). The issuance
of receipts for the drugs, and recordkeeping activities regarding the drugs,
may be carried out on a summary basis.</text>
</paragraph><paragraph id="IDD029DA00489843C3BD3AA1C93520094F"><enum>(2)</enum><header>Objective of
procedures</header><text>Procedures promulgated under paragraph (1) shall be
designed toward the objective of ensuring that, with respect to efficiently
utilizing Federal resources available for carrying out this section, a
substantial majority of shipments of drugs subject to described in subsection
(c) are identified and destroyed.</text>
</paragraph></subsection><subsection id="ID829BE754C57B4D3CB3B141AFAF66533E"><enum>(e)</enum><header>Evidence
exception</header><text>Drugs may not be destroyed under subsection (c) to the
extent that the Attorney General of the United States determines that the drugs
should be preserved as evidence or potential evidence with respect to an
offense against the United States.</text>
</subsection><subsection id="IDCD492B638CE94555B264A0BF4FCEE7A6"><enum>(f)</enum><header>Rule of
construction</header><text>This section may not be construed as having any
legal effect on applicable law with respect to a shipment of drugs that is
imported or offered for import into the United States and has a declared value
equal to or greater than
$10,000.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID4AE645B8549E44DAB163A7B14B7B2EE0"><enum>(2)</enum><header>Procedures</header><text>Procedures
for carrying out section 805 of the <act-name parsable-cite="FFDCA">Federal
Food, Drug, and Cosmetic Act</act-name>, as added by subsection (a), shall be
established not later than 90 days after the date of the enactment of this
Act.</text>
</paragraph><paragraph id="ID33D676839A8A4DB1B1FD634F8A766962"><enum>(3)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on the
date that is 90 days after the date of enactment of this Act.</text>
</paragraph></subsection><subsection id="ID7A4967C5D3FB43449E3CD4845982CB86"><enum>(f)</enum><header>Wholesale
distribution of drugs; statements regarding prior sale, purchase, or
trade</header>
<paragraph id="ID35D9D803AE2C44DEB9C5219FBA320F48"><enum>(1)</enum><header>Striking of
exemptions; applicability to registered exporters</header><text>Section 503(e)
of the <act-name parsable-cite="FFDCA">Federal Food, Drug, and Cosmetic
Act</act-name> (21 U.S.C. 353(e)) is amended—</text>
<subparagraph id="IDBE72EF25A50A4B4C9601D9C807996652"><enum>(A)</enum><text>in paragraph
(1)—</text>
<clause id="ID3AEA8987D166492AA795F75F14BAA69B"><enum>(i)</enum><text>by
striking <quote>and who is not the manufacturer or an authorized distributor of
record of such drug</quote>;</text>
</clause><clause id="ID15DF4AA624AE4E74AD6BECA1F6FFAC52"><enum>(ii)</enum><text>by
striking <quote>to an authorized distributor of record or</quote>; and</text>
</clause><clause id="ID3C9FCB86C8CB484888EF32E707B39011"><enum>(iii)</enum><text>by striking
subparagraph (B) and inserting the following:</text>
<quoted-block id="IDE916BDE28D85422A8A0D9301C0F41A0C">
<subparagraph id="ID2619AA1209714D2FBD8C641C79B1747C" indent="up2"><enum>(B)</enum><text>The fact that a drug subject to
subsection (b) is exported from the United States does not with respect to such
drug exempt any person that is engaged in the business of the wholesale
distribution of the drug from providing the statement described in subparagraph
(A) to the person that receives the drug pursuant to the export of the
drug.</text>
</subparagraph><subparagraph id="IDCA1A4D5C0DCB4BE1B45E4BF850BD2B9D" indent="up2"><enum>(C)</enum><clause commented="no" display-inline="yes-display-inline" id="ID787615C4A53E4BA0B92B967A49FF83DB"><enum>(i)</enum><text>The Secretary shall by
regulation establish requirements that supersede subparagraph (A) (referred to
in this subparagraph as <term>alternative requirements</term>) to identify the
chain of custody of a drug subject to subsection (b) from the manufacturer of
the drug throughout the wholesale distribution of the drug to a pharmacist who
intends to sell the drug at retail if the Secretary determines that the
alternative requirements, which may include standardized anti-counterfeiting or
track-and-trace technologies, will identify such chain of custody or the
identity of the discrete package of the drug from which the drug is dispensed
with equal or greater certainty to the requirements of subparagraph (A), and
that the alternative requirements are economically and technically
feasible.</text>
</clause><clause id="ID05A2F9041C55456396960A3CC75E83F4" indent="up1"><enum>(ii)</enum><text>When the Secretary promulgates a
final rule to establish such alternative requirements, the final rule in
addition shall, with respect to the registration condition established in
clause (i) of section 804(c)(3)(B), establish a condition equivalent to the
alternative requirements, and such equivalent condition may be met in lieu of
the registration condition established in such clause
(i).</text>
</clause></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="ID6CC6C6E463544E0E9C79A2E5DD80D396"><enum>(B)</enum><text>in paragraph
(2)(A), by adding at the end the following: <quote>The preceding sentence may
not be construed as having any applicability with respect to a registered
exporter under section 804.</quote>; and</text>
</subparagraph><subparagraph id="ID1D6442BB7C5E4A92A476A888588D7E15"><enum>(C)</enum><text>in paragraph (3),
by striking <quote>and subsection (d)—</quote> in the matter preceding
subparagraph (A) and all that follows through <quote>the term <term>wholesale
distribution</term> means</quote> in subparagraph (B) and inserting the
following: <quote>and subsection (d), the term <term>wholesale
distribution</term> means</quote>.</text>
</subparagraph></paragraph><paragraph id="IDBCE645B1C21D443EBD65BBDC97F405AF"><enum>(2)</enum><header>Conforming
amendment</header><text>Section 503(d) of the <act-name parsable-cite="FFDCA">Federal Food, Drug, and Cosmetic Act</act-name> (21
U.S.C. 353(d)) is amended by adding at the end the following:</text>
<quoted-block act-name="Federal Food, Drug, and Cosmetic Act" id="IDF3F342344FE348528F749B33A4DEFD7D">
<paragraph id="ID532A423F419D4F2CAF7A106AFCFAB657" indent="up1"><enum>(4)</enum><text>Each manufacturer of a drug subject
to subsection (b) shall maintain at its corporate offices a current list of the
authorized distributors of record of such drug.</text>
</paragraph><paragraph id="ID6724042EDC9442E5A443327CB952A8B4" indent="up1"><enum>(5)</enum><text>For purposes of this subsection, the
term <term>authorized distributors of record</term> means those distributors
with whom a manufacturer has established an ongoing relationship to distribute
such manufacturer’s
products.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID04252AEDE39045CCBB324E8F3C71213E"><enum>(3)</enum><header>Effective
date</header>
<subparagraph id="ID888606AC2BF340ED93013C869CDF0391"><enum>(A)</enum><header>In
general</header><text>The amendments made by subparagraphs (A) and (C) of
paragraph (1) and by paragraph (2) shall take effect on January 1, 2012.</text>
</subparagraph><subparagraph id="ID197FEE8D61E74EEFA7165A1F7D86E25D"><enum>(B)</enum><header>Drugs imported
by registered importers under Section
<enum-in-header>804</enum-in-header></header><text>Notwithstanding subparagraph
(A), the amendments made by subparagraphs (A) and (C) of paragraph (1) and by
paragraph (2) shall take effect on the date that is 90 days after the date of
enactment of this Act with respect to qualifying drugs imported under section
804 of the <act-name parsable-cite="FFDCA">Federal Food, Drug, and Cosmetic
Act</act-name>, as added by subsection (d).</text>
</subparagraph><subparagraph id="IDFAB50F6BA18E4B22B21FA461EEE5EC6D"><enum>(C)</enum><header>Effect with
respect to registered exporters</header><text>The amendment made by paragraph
(1)(B) shall take effect on the date that is 90 days after the date of
enactment of this Act.</text>
</subparagraph><subparagraph id="IDBDBE97C9A12342CEA21C541F64ABFB19"><enum>(D)</enum><header>Alternative
requirements</header><text>The Secretary shall issue regulations to establish
the alternative requirements, referred to in the amendment made by paragraph
(1)(A), that take effect not later than January 1, 2012.</text>
</subparagraph><subparagraph id="ID828B7916ED094663BA494886B44F1BF5"><enum>(E)</enum><header>Intermediate
requirements</header><text>The Secretary shall by regulation require the use of
standardized anti-counterfeiting or track-and-trace technologies on
prescription drugs at the case and pallet level effective not later than 1 year
after the date of enactment of this Act.</text>
</subparagraph><subparagraph id="id6D3F599452F64540A121721FF1A62CC1"><enum>(F)</enum><header>Additional
requirements</header>
<clause id="idDF6098E18DE540048B9973F94D449F4E"><enum>(i)</enum><header>In
general</header><text>Notwithstanding any other provision of this subsection,
the Secretary shall, not later than 18 months after the date of enactment of
this Act, require that the packaging of any prescription drug
incorporates—</text>
<subclause id="id860A8883E244474F830AE8978DEDC839"><enum>(I)</enum><text>a standardized
numerical identifier unique to each package of such drug, applied at the point
of manufacturing and repackaging (in which case the numerical identifier shall
be linked to the numerical identifier applied at the point of manufacturing);
and</text>
</subclause><subclause id="idAF2AB634C5C14E4DB5E72B4D24D53995"><enum>(II)</enum><item commented="no" display-inline="yes-display-inline" id="idC739E8AEDA8C465CB662AEA4A139697B"><enum>(aa)</enum><text>overt optically
variable counterfeit-resistant technologies that—</text>
<subitem id="id3C91EAD645FF4AB69ED9B7B713AFAC59" indent="up1"><enum>(AA)</enum><text>are visible to the naked eye, providing
for visual identification of product authenticity without the need for readers,
microscopes, lighting devices, or scanners;</text>
</subitem><subitem id="idEDA54D2A5CDA426095E2DA1797573C30" indent="up1"><enum>(BB)</enum><text>are similar to that used by the Bureau of
Engraving and Printing to secure United States currency;</text>
</subitem><subitem id="idFA8A20D9CE9C4AC991F0DD3C6E92A609" indent="up1"><enum>(CC)</enum><text>are manufactured and distributed in a
highly secure, tightly controlled environment; and</text>
</subitem><subitem id="id290C167948A2456DA4DFA3309B80B3D8" indent="up1"><enum>(DD)</enum><text>incorporate additional layers of
nonvisible convert security features up to and including forensic capability,
as described in subparagraph (B); or</text>
</subitem></item><item id="id499E2482B2114B07ADBEB04BC59EE7F7" indent="up1"><enum>(bb)</enum><text>technologies that have a function of
security comparable to that described in item (aa), as determined by the
Secretary.</text>
</item></subclause></clause><clause id="idD06735EA2BDD43C4BDC9D3ED6843AAA4"><enum>(ii)</enum><header>Standards for
packaging</header><text>For the purpose of making it more difficult to
counterfeit the packaging of drugs subject to this paragraph, the manufacturers
of such drugs shall incorporate the technologies described in clause (i) into
at least 1 additional element of the physical packaging of the drugs, including
blister packs, shrink wrap, package labels, package seals, bottles, and
boxes.</text>
</clause></subparagraph></paragraph></subsection><subsection id="IDD470091DFC3C4DBA8FE507D014677D9D"><enum>(g)</enum><header>Internet sales
of prescription drugs</header>
<paragraph id="ID579473DD5D6B402B93B4D44B464591EE"><enum>(1)</enum><header>In
general</header><text>Chapter V of the <act-name parsable-cite="FFDCA">Federal
Food, Drug, and Cosmetic Act</act-name> (21 U.S.C. 351 et seq.) is amended by
inserting after section 503B the following:</text>
<quoted-block act-name="Federal Food, Drug, and Cosmetic Act" id="IDCBC4A75CBC3B47D7B3FC33CCCC49C64A">
<section id="IDB96FED5EB177430292D0A2BBA43FEDB4"><enum>503C.</enum><header>Internet
sales of prescription drugs</header>
<subsection id="ID92F8798D49FC45089F300B55C830C35E"><enum>(a)</enum><header>Requirements
regarding information on Internet site</header>
<paragraph id="ID8C4DE8E9974546C6931436C7171C0A8A"><enum>(1)</enum><header>In
general</header><text>A person may not dispense a prescription drug pursuant to
a sale of the drug by such person if—</text>
<subparagraph id="ID59E8871D704C47A6AF151115B4BB32B9"><enum>(A)</enum><text>the purchaser of
the drug submitted the purchase order for the drug, or conducted any other part
of the sales transaction for the drug, through an Internet site;</text>
</subparagraph><subparagraph id="IDAC16A1B55EB944BE914573AC9827DC09"><enum>(B)</enum><text>the person
dispenses the drug to the purchaser by mailing or shipping the drug to the
purchaser; and</text>
</subparagraph><subparagraph id="IDFE231A7E217E46DDA857F15FF56CED53"><enum>(C)</enum><text>such site, or any
other Internet site used by such person for purposes of sales of a prescription
drug, fails to meet each of the requirements specified in paragraph (2), other
than a site or pages on a site that—</text>
<clause id="IDA444076479BA4CE4BA4E5FC7EC0A5CAF"><enum>(i)</enum><text>are not intended
to be accessed by purchasers or prospective purchasers; or</text>
</clause><clause id="ID2FE483ED8AC2489891E85E8C22345EB2"><enum>(ii)</enum><text>provide an
Internet information location tool within the meaning of section 231(e)(5) of
the <act-name parsable-cite="CA34">Communications Act of 1934</act-name> (47
U.S.C. 231(e)(5)).</text>
</clause></subparagraph></paragraph><paragraph id="ID9CDBA0FB4B1543219E9109699B626954"><enum>(2)</enum><header>Requirements</header><text>With
respect to an Internet site, the requirements referred to in subparagraph (C)
of paragraph (1) for a person to whom such paragraph applies are as
follows:</text>
<subparagraph id="IDCCD3E56B22E5402D8678887C09517CA1"><enum>(A)</enum><text>Each page of the
site shall include either the following information or a link to a page that
provides the following information:</text>
<clause id="ID7CD5BF1F1E334A2CA1A141A30C928A42"><enum>(i)</enum><text>The name of such
person.</text>
</clause><clause id="ID14C0C75C09724FB285D9F9E7D8B5A9D0"><enum>(ii)</enum><text>Each State in
which the person is authorized by law to dispense prescription drugs.</text>
</clause><clause id="ID39656903D7964F2FBE18A2E7DDD39715"><enum>(iii)</enum><text>The address and
telephone number of each place of business of the person with respect to sales
of prescription drugs through the Internet, other than a place of business that
does not mail or ship prescription drugs to purchasers.</text>
</clause><clause id="ID3FE6F7D07DD44E68A7724EF3925B086B"><enum>(iv)</enum><text>The name of each
individual who serves as a pharmacist for prescription drugs that are mailed or
shipped pursuant to the site, and each State in which the individual is
authorized by law to dispense prescription drugs.</text>
</clause><clause id="IDF3353C8CCA8E47FA98140CABCC9E6B51"><enum>(v)</enum><text>If the person
provides for medical consultations through the site for purposes of providing
prescriptions, the name of each individual who provides such consultations;
each State in which the individual is licensed or otherwise authorized by law
to provide such consultations or practice medicine; and the type or types of
health professions for which the individual holds such licenses or other
authorizations.</text>
</clause></subparagraph><subparagraph id="ID8C586A6D51CE4567B7150F2671798867"><enum>(B)</enum><text>A link to which
paragraph (1) applies shall be displayed in a clear and prominent place and
manner, and shall include in the caption for the link the words
<quote>licensing and contact information</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="ID216ECC955F594320ADB282CE35E5AE21"><enum>(b)</enum><header>Internet sales
without appropriate medical relationships</header>
<paragraph id="ID32B9DC1A11C24A2AB17A3F373FC0269B"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), a person may not
dispense a prescription drug, or sell such a drug, if—</text>
<subparagraph id="ID79018EAF2B9849D5A3644C4F57DCFEB3"><enum>(A)</enum><text>for purposes of
such dispensing or sale, the purchaser communicated with the person through the
Internet;</text>
</subparagraph><subparagraph id="IDEB2AE0C4AABB46709B5BDEF6F2770D34"><enum>(B)</enum><text>the patient for
whom the drug was dispensed or purchased did not, when such communications
began, have a prescription for the drug that is valid in the United
States;</text>
</subparagraph><subparagraph id="ID52B377F9B9034339897B3D4DD91C2FFB"><enum>(C)</enum><text>pursuant to such
communications, the person provided for the involvement of a practitioner, or
an individual represented by the person as a practitioner, and the practitioner
or such individual issued a prescription for the drug that was
purchased;</text>
</subparagraph><subparagraph id="IDBB12293497154684AE3F1AA31E5F541B"><enum>(D)</enum><text>the person knew,
or had reason to know, that the practitioner or the individual referred to in
subparagraph (C) did not, when issuing the prescription, have a qualifying
medical relationship with the patient; and</text>
</subparagraph><subparagraph id="IDE3AAAACFC7394B579B3B2FB37CD0BBCF"><enum>(E)</enum><text>the person
received payment for the dispensing or sale of the drug.</text>
</subparagraph><continuation-text continuation-text-level="paragraph">For
purposes of subparagraph (E), payment is received if money or other valuable
consideration is received.</continuation-text></paragraph><paragraph id="IDFEC54C81E86B446EAE2B83A7F84B698C"><enum>(2)</enum><header>Exceptions</header><text>Paragraph
(1) does not apply to—</text>
<subparagraph id="IDF360BEFC44CF4236AD882B8952746611"><enum>(A)</enum><text>the dispensing or
selling of a prescription drug pursuant to telemedicine practices sponsored
by—</text>
<clause id="IDA054798B8DF049469092061CE61B88A0"><enum>(i)</enum><text>a
hospital that has in effect a provider agreement under title XVIII of the
<act-name parsable-cite="SSA">Social Security Act</act-name> (relating to the
Medicare program); or</text>
</clause><clause id="IDE168CD9098F74EC9856BFCA2E673D080"><enum>(ii)</enum><text>a group practice
that has not fewer than 100 physicians who have in effect provider agreements
under such title; or</text>
</clause></subparagraph><subparagraph id="ID99D0ADBE7D8D49B097C7B8CB37C677D1"><enum>(B)</enum><text>the dispensing or
selling of a prescription drug pursuant to practices that promote the public
health, as determined by the Secretary by regulation.</text>
</subparagraph></paragraph><paragraph id="ID05173D41893F48AFAEEE7E8AFCA3FAA7"><enum>(3)</enum><header>Qualifying
medical relationship</header>
<subparagraph id="IDA5377D8C480942FBB570DBEBB40D150F"><enum>(A)</enum><header>In
general</header><text>With respect to issuing a prescription for a drug for a
patient, a practitioner has a qualifying medical relationship with the patient
for purposes of this section if—</text>
<clause id="ID40591F110C2040A0AD64D878F1197113"><enum>(i)</enum><text>at least one
in-person medical evaluation of the patient has been conducted by the
practitioner; or</text>
</clause><clause id="ID38C77D43615F4362B6F256EC0213B1CE"><enum>(ii)</enum><text>the practitioner
conducts a medical evaluation of the patient as a covering practitioner.</text>
</clause></subparagraph><subparagraph id="ID7740DFDEB87041A79A5FD093FEBFF2CF"><enum>(B)</enum><header>In-person
medical evaluation</header><text>A medical evaluation by a practitioner is an
in-person medical evaluation for purposes of this section if the practitioner
is in the physical presence of the patient as part of conducting the
evaluation, without regard to whether portions of the evaluation are conducted
by other health professionals.</text>
</subparagraph><subparagraph id="ID5FC15C5F5EE241F095068B3386E368F2"><enum>(C)</enum><header>Covering
practitioner</header><text>With respect to a patient, a practitioner is a
covering practitioner for purposes of this section if the practitioner conducts
a medical evaluation of the patient at the request of a practitioner who has
conducted at least one in-person medical evaluation of the patient and is
temporarily unavailable to conduct the evaluation of the patient. A
practitioner is a covering practitioner without regard to whether the
practitioner has conducted any in-person medical evaluation of the patient
involved.</text>
</subparagraph></paragraph><paragraph id="ID4D458285760B47C38C00BDAEEF8B98A8"><enum>(4)</enum><header>Rules of
construction</header>
<subparagraph id="IDF401C9CE40124BF9A8B4BBCAF85D683C"><enum>(A)</enum><header>Individuals
represented as practitioners</header><text>A person who is not a practitioner
(as defined in subsection (e)(1)) lacks legal capacity under this section to
have a qualifying medical relationship with any patient.</text>
</subparagraph><subparagraph id="ID444B70FC98554B15B4D1B1E623C2CA54"><enum>(B)</enum><header>Standard
practice of pharmacy</header><text>Paragraph (1) may not be construed as
prohibiting any conduct that is a standard practice in the practice of
pharmacy.</text>
</subparagraph><subparagraph id="IDE83BAFBB806B4B248A3D0889C6C2F994"><enum>(C)</enum><header>Applicability
of requirements</header><text>Paragraph (3) may not be construed as having any
applicability beyond this section, and does not affect any State law, or
interpretation of State law, concerning the practice of medicine.</text>
</subparagraph></paragraph></subsection><subsection id="ID2752852352464FC4989CBFFCA4A20635"><enum>(c)</enum><header>Actions by
States</header>
<paragraph id="ID870C4E220C8545ACB7468F9CB961D11C"><enum>(1)</enum><header>In
general</header><text>Whenever an attorney general of any State has reason to
believe that the interests of the residents of that State have been or are
being threatened or adversely affected because any person has engaged or is
engaging in a pattern or practice that violates section 301(l), the State may
bring a civil action on behalf of its residents in an appropriate district
court of the United States to enjoin such practice, to enforce compliance with
such section (including a nationwide injunction), to obtain damages,
restitution, or other compensation on behalf of residents of such State, to
obtain reasonable attorneys fees and costs if the State prevails in the civil
action, or to obtain such further and other relief as the court may deem
appropriate.</text>
</paragraph><paragraph id="IDCECD7D8C5FCD4047890EAF52A6CB30F5"><enum>(2)</enum><header>Notice</header><text>The
State shall serve prior written notice of any civil action under paragraph (1)
or (5)(B) upon the Secretary and provide the Secretary with a copy of its
complaint, except that if it is not feasible for the State to provide such
prior notice, the State shall serve such notice immediately upon instituting
such action. Upon receiving a notice respecting a civil action, the Secretary
shall have the right—</text>
<subparagraph id="ID235974EEC89F4D8C9F7C9A1ED8DC3752"><enum>(A)</enum><text>to intervene in
such action;</text>
</subparagraph><subparagraph id="ID0CB02F6A5CE84D9FB2BCEB05FC346B2D"><enum>(B)</enum><text>upon so
intervening, to be heard on all matters arising therein; and</text>
</subparagraph><subparagraph id="ID2A81E43F0E00491792A47F5DB211E979"><enum>(C)</enum><text>to file petitions
for appeal.</text>
</subparagraph></paragraph><paragraph id="ID3CFE585166FD49DD8D7ED2D9F7B0149C"><enum>(3)</enum><header>Construction</header><text>For
purposes of bringing any civil action under paragraph (1), nothing in this
chapter shall prevent an attorney general of a State from exercising the powers
conferred on the attorney general by the laws of such State to conduct
investigations or to administer oaths or affirmations or to compel the
attendance of witnesses or the production of documentary and other
evidence.</text>
</paragraph><paragraph id="ID0EF563B33220472080205BB9D5A564EA"><enum>(4)</enum><header>Venue; service
of process</header><text>Any civil action brought under paragraph (1) in a
district court of the United States may be brought in the district in which the
defendant is found, is an inhabitant, or transacts business or wherever venue
is proper under section 1391 of title 28, United States Code. Process in such
an action may be served in any district in which the defendant is an inhabitant
or in which the defendant may be found.</text>
</paragraph><paragraph id="ID5075AA51547C4481BCF241CFCD8030B2"><enum>(5)</enum><header>Actions by
other State officials</header>
<subparagraph id="IDD790D111D37C41C0B3EE3D5CFA06C41C"><enum>(A)</enum><text>Nothing contained
in this section shall prohibit an authorized State official from proceeding in
State court on the basis of an alleged violation of any civil or criminal
statute of such State.</text>
</subparagraph><subparagraph id="ID1EC13719BC7E48559593B1B7209A3711"><enum>(B)</enum><text>In addition to
actions brought by an attorney general of a State under paragraph (1), such an
action may be brought by officers of such State who are authorized by the State
to bring actions in such State on behalf of its residents.</text>
</subparagraph></paragraph></subsection><subsection id="ID32024C443A5044689C5413A3731AD41C"><enum>(d)</enum><header>Effect of
Section</header><text>This section shall not apply to a person that is a
registered exporter under section 804.</text>
</subsection><subsection id="IDE6B40A3647AA432C9CE5A137016B3758"><enum>(e)</enum><header>General
definitions</header><text>For purposes of this section:</text>
<paragraph id="ID37D641A6527341C18D0A6545AA8E2674"><enum>(1)</enum><text>The term
<term>practitioner</term> means a practitioner referred to in section 503(b)(1)
with respect to issuing a written or oral prescription.</text>
</paragraph><paragraph id="ID1E568E2D2C1342A58024B2341417F91C"><enum>(2)</enum><text>The term
<term>prescription drug</term> means a drug that is described in section
503(b)(1).</text>
</paragraph><paragraph id="ID605D30F2238E42EE9020E2D2A6EE1CE5"><enum>(3)</enum><text>The term
<term>qualifying medical relationship</term>, with respect to a practitioner
and a patient, has the meaning indicated for such term in subsection
(b).</text>
</paragraph></subsection><subsection id="ID3934E0912E7549C1A6AC9A4351658F80"><enum>(f)</enum><header>Internet-Related
definitions</header>
<paragraph id="IDA2D2217FA408431DA87E0344F57595BA"><enum>(1)</enum><header>In
general</header><text>For purposes of this section:</text>
<subparagraph id="ID46A4EBFB9A5D420ABF9144A4B94F0FDD"><enum>(A)</enum><text>The term
<term>Internet</term> means collectively the myriad of computer and
telecommunications facilities, including equipment and operating software,
which comprise the interconnected world-wide network of networks that employ
the transmission control protocol/internet protocol, or any predecessor or
successor protocols to such protocol, to communicate information of all kinds
by wire or radio.</text>
</subparagraph><subparagraph id="ID847B096313784178BAE8093476026A75"><enum>(B)</enum><text>The term
<term>link</term>, with respect to the Internet, means one or more letters,
words, numbers, symbols, or graphic items that appear on a page of an Internet
site for the purpose of serving, when activated, as a method for executing an
electronic command—</text>
<clause id="IDB04607F041E14C719EDAB4A3DF4059EB"><enum>(i)</enum><text>to move from
viewing one portion of a page on such site to another portion of the
page;</text>
</clause><clause id="IDD6B8A78BF7BC456A8C649E009B27EF44"><enum>(ii)</enum><text>to move from
viewing one page on such site to another page on such site; or</text>
</clause><clause id="ID575C90F28D1B4593B0F9481AA2E53DA9"><enum>(iii)</enum><text>to move from
viewing a page on one Internet site to a page on another Internet site.</text>
</clause></subparagraph><subparagraph id="ID0EF4542EE9814E94970C02AE91866CDD"><enum>(C)</enum><text>The term
<term>page</term>, with respect to the Internet, means a document or other file
accessed at an Internet site.</text>
</subparagraph><subparagraph id="IDE3BC817B65B14CB1B52B5B26BBAFCC41"><enum>(D)</enum><clause commented="no" display-inline="yes-display-inline" id="IDE4B1DF4EDA2E4FC39A2542A9067FDF85"><enum>(i)</enum><text>The terms
<term>site</term> and <term>address</term>, with respect to the Internet, mean
a specific location on the Internet that is determined by Internet Protocol
numbers. Such term includes the domain name, if any.</text>
</clause><clause id="IDD7230825A42D4502A024115BAF428A10" indent="up1"><enum>(ii)</enum><text>The term <term>domain name</term>
means a method of representing an Internet address without direct reference to
the Internet Protocol numbers for the address, including methods that use
designations such as <term>.com</term>, <term>.edu</term>, <term>.gov</term>,
<term>.net</term>, or <term>.org</term>.</text>
</clause><clause id="ID1F247C4E995A4A509BC2040ED79A346C" indent="up1"><enum>(iii)</enum><text>The term <term>Internet Protocol
numbers</term> includes any successor protocol for determining a specific
location on the Internet.</text>
</clause></subparagraph></paragraph><paragraph id="IDEBA52DCCE0BF460FBBB0C2225069FC66"><enum>(2)</enum><header>Authority of
Secretary</header><text>The Secretary may by regulation modify any definition
under paragraph (1) to take into account changes in technology.</text>
</paragraph></subsection><subsection id="ID63A3C413DBBC435183E1CF4AFD711CA6"><enum>(g)</enum><header>Interactive
computer service; advertising</header><text>No provider of an interactive
computer service, as defined in section 230(f)(2) of the
<act-name parsable-cite="CA34">Communications Act of 1934</act-name> (47 U.S.C.
230(f)(2)), or of advertising services shall be liable under this section for
dispensing or selling prescription drugs in violation of this section on
account of another person’s selling or dispensing such drugs, provided that the
provider of the interactive computer service or of advertising services does
not own or exercise corporate control over such
person.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID75E2989C7FF3423DA2E10CE00106B6DB"><enum>(2)</enum><header>Inclusion as
prohibited Act</header><text>Section 301 of the <act-name parsable-cite="FFDCA">Federal Food, Drug, and Cosmetic Act</act-name> (21
U.S.C. 331) is amended by inserting after paragraph (k) the following:</text>
<quoted-block act-name="Federal Food, Drug, and Cosmetic Act" id="ID5B5A00A4EE0246C4B475877499C96820">
<subsection id="IDE14728FDD32649AB885E5AF7151800DF"><enum>(l)</enum><text>The dispensing or
selling of a prescription drug in violation of section
503C.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID9521E240389E43079A2F5B1ED0430124"><enum>(3)</enum><header>Internet sales
of prescription drugs; consideration by Secretary of practices and procedures
for certification of legitimate businesses</header><text>In carrying out
section 503C of the <act-name parsable-cite="FFDCA">Federal Food, Drug, and
Cosmetic Act</act-name> (as added by paragraph (1)), the Secretary of Health
and Human Services shall take into consideration the practices and procedures
of public or private entities that certify that businesses selling prescription
drugs through Internet sites are legitimate businesses, including practices and
procedures regarding disclosure formats and verification programs.</text>
</paragraph><paragraph id="IDA5E095FA5B514E878DFB6FEB0E74663D"><enum>(4)</enum><header>Reports
regarding Internet-Related violations of Federal and State laws on dispensing
of drugs</header>
<subparagraph id="IDB7BDBD3D8ACD452B8E87F0D76407A07E"><enum>(A)</enum><header>In
general</header><text>The Secretary of Health and Human Services (referred to
in this paragraph as the <term>Secretary</term>) shall, pursuant to the
submission of an application meeting the criteria of the Secretary, make an
award of a grant or contract to the National Clearinghouse on Internet
Prescribing (operated by the Federation of State Medical Boards) for the
purpose of—</text>
<clause id="ID34D51C5504144450B5BBD5C8B984F76E"><enum>(i)</enum><text>identifying
Internet sites that appear to be in violation of Federal or State laws
concerning the dispensing of drugs;</text>
</clause><clause id="IDB812BE4375C947BAB5FCB2076124C78A"><enum>(ii)</enum><text>reporting such
sites to State medical licensing boards and State pharmacy licensing boards,
and to the Attorney General and the Secretary, for further investigation;
and</text>
</clause><clause id="ID61FF604DB2104CE1A29ACF2173D8A0CF"><enum>(iii)</enum><text>submitting, for
each fiscal year for which the award under this subsection is made, a report to
the Secretary describing investigations undertaken with respect to violations
described in clause (i).</text>
</clause></subparagraph><subparagraph id="ID008E2AD0E3994BAF84C30FDFC32A10BF"><enum>(B)</enum><header>Authorization
of appropriations</header><text>For the purpose of carrying out subparagraph
(A), there is authorized to be appropriated $100,000 for each of the first 3
fiscal years in which this section is in effect.</text>
</subparagraph></paragraph><paragraph id="ID5824C73110844473B6DB7894D6441949"><enum>(5)</enum><header>Effective
date</header><text>The amendments made by paragraphs (1) and (2) take effect 90
days after the date of enactment of this Act, without regard to whether a final
rule to implement such amendments has been promulgated by the Secretary of
Health and Human Services under section 701(a) of the
<act-name parsable-cite="FFDCA">Federal Food, Drug, and Cosmetic
Act</act-name>. The preceding sentence may not be construed as affecting the
authority of such Secretary to promulgate such a final rule.</text>
</paragraph></subsection><subsection id="id43FAA6C1FD744106AB715B3487097A12"><enum>(h)</enum><header>Prohibiting
payments to unregistered foreign pharmacies</header>
<paragraph id="idEE116BDBA3844D248613DF1688EEB544"><enum>(1)</enum><header>In
general</header><text>Section 303 of the Federal Food, Drug, and Cosmetic Act
(21 U.S.C. 333) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id160872B2B9134C6EA5C651682C76E75C" style="OLC">
<subsection id="ID91a04745e0b44893ac6e4bc8a5b4b12c"><enum>(h)</enum><header>Restricted
transactions</header>
<paragraph id="id2A4D2FC9B53B4574863E8C384852B35C"><enum>(1)</enum><header>In
general</header><text>The introduction of restricted transactions into a
payment system or the completion of restricted transactions using a payment
system is prohibited.</text>
</paragraph><paragraph id="id5B12D2A5567945F09DCF23D209338856"><enum>(2)</enum><header>Payment
system</header>
<subparagraph id="id911D0F81E85F473A8C4C8F1E430BF223"><enum>(A)</enum><header>In
general</header><text>The term <term>payment system</term> means a system used
by a person described in subparagraph (B) to effect a credit transaction,
electronic fund transfer, or money transmitting service that may be used in
connection with, or to facilitate, a restricted transaction, and
includes—</text>
<clause id="idA197921812CD4EC5A84877A4A252B500"><enum>(i)</enum><text>a
credit card system;</text>
</clause><clause id="idBBE490B2F672480E9F7D8CAA5B331329"><enum>(ii)</enum><text>an
international, national, regional, or local network used to effect a credit
transaction, an electronic fund transfer, or a money transmitting service;
and</text>
</clause><clause id="id79F4F18E831441FA842E79F3BC0CD142"><enum>(iii)</enum><text>any other
system that is centrally managed and is primarily engaged in the transmission
and settlement of credit transactions, electronic fund transfers, or money
transmitting services.</text>
</clause></subparagraph><subparagraph id="id76FB7B1986F84CE2886185652603C99D"><enum>(B)</enum><header>Persons
described</header><text>A person referred to in subparagraph (A) is—</text>
<clause id="id0FE382D1DE15478DAE7D6958DDF982B6"><enum>(i)</enum><text>a
creditor;</text>
</clause><clause id="id336E87C14BE8450AB4DF533AE18FCF82"><enum>(ii)</enum><text>a credit card
issuer;</text>
</clause><clause id="id17A2F5FDBA684D35B32DB2C233E46CF2"><enum>(iii)</enum><text>a financial
institution;</text>
</clause><clause id="id60891DB46CC143579C0DAE4E711DE5B0"><enum>(iv)</enum><text>an operator of a
terminal at which an electronic fund transfer may be initiated;</text>
</clause><clause id="id1A5D5F59FBD44225BF0281CF6DC6DCC5"><enum>(v)</enum><text>a
money transmitting business; or</text>
</clause><clause id="idD9A04D4EA41E4D16B603CDB78C184792"><enum>(vi)</enum><text>a participant in
an international, national, regional, or local network used to effect a credit
transaction, electronic fund transfer, or money transmitting service.</text>
</clause></subparagraph></paragraph><paragraph id="idC7FEA1B46E27423DA8579DA698A3FEE8"><enum>(3)</enum><header>Restricted
transaction</header><text>The term <term>restricted transaction</term> means a
transaction or transmittal, on behalf of an individual who places an unlawful
drug importation request to any person engaged in the operation of an
unregistered foreign pharmacy, of—</text>
<subparagraph id="idB1B0DCB1D19842FBAEA7FA2FB5FDFC12"><enum>(A)</enum><text>credit, or the
proceeds of credit, extended to or on behalf of the individual for the purpose
of the unlawful drug importation request (including credit extended through the
use of a credit card);</text>
</subparagraph><subparagraph id="id6B503EB8866941799E77F5F93C78F897"><enum>(B)</enum><text>an electronic
fund transfer or funds transmitted by or through a money transmitting business,
or the proceeds of an electronic fund transfer or money transmitting service,
from or on behalf of the individual for the purpose of the unlawful drug
importation request;</text>
</subparagraph><subparagraph id="id723E5DCB899A4D27ABBFF8914B6A3050"><enum>(C)</enum><text>a check, draft,
or similar instrument which is drawn by or on behalf of the individual for the
purpose of the unlawful drug importation request and is drawn on or payable at
or through any financial institution; or</text>
</subparagraph><subparagraph id="id9131F4FC14984B908CD1C99B2F997705"><enum>(D)</enum><text>the proceeds of
any other form of financial transaction (identified by the Board by regulation)
that involves a financial institution as a payor or financial intermediary on
behalf of or for the benefit of the individual for the purpose of the unlawful
drug importation request.</text>
</subparagraph></paragraph><paragraph id="idC55DAA5D555041308A0471A9CD79209B"><enum>(4)</enum><header>Unlawful drug
importation request</header><text>The term <term>unlawful drug importation
request</term> means the request, or transmittal of a request, made to an
unregistered foreign pharmacy for a prescription drug by mail (including a
private carrier), facsimile, phone, or electronic mail, or by a means that
involves the use, in whole or in part, of the Internet.</text>
</paragraph><paragraph id="id87807FE7C02040439DEB1C49B52E2597"><enum>(5)</enum><header>Unregistered
foreign pharmacy</header><text>The term <term>unregistered foreign
pharmacy</term> means a person in a country other than the United States that
is not a registered exporter under section 804.</text>
</paragraph><paragraph id="id610EE588535D4206969343065AA9D1CA"><enum>(6)</enum><header>Other
definitions</header>
<subparagraph id="idA7E03FA874EF4E44BF3B44064EAF185C"><enum>(A)</enum><header>Credit;
creditor; credit card</header><text>The terms <term>credit</term>,
<term>creditor</term>, and <term>credit card</term> have the meanings given the
terms in section 103 of the Truth in Lending Act (15 U.S.C. 1602).</text>
</subparagraph><subparagraph id="idB683910E34B2425FA9DE575D75F4F4B1"><enum>(B)</enum><header>Access device;
electronic fund transfer</header><text>The terms <term>access device</term> and
<term>electronic fund transfer</term>—</text>
<clause id="id5D8744E547094B69846201AA7C1F6242"><enum>(i)</enum><text>have the meaning
given the term in section 903 of the Electronic Fund Transfer Act (15 U.S.C.
1693a); and</text>
</clause><clause id="id11A2DBC70B9A436B8536654D2543B9E8"><enum>(ii)</enum><text>the term
<term>electronic fund transfer</term> also includes any fund transfer covered
under Article 4A of the Uniform Commercial Code, as in effect in any
State.</text>
</clause></subparagraph><subparagraph id="id3BCAFF2BB286430EBA7A85618B432F33"><enum>(C)</enum><header>Financial
institution</header><text>The term <term>financial institution</term>—</text>
<clause id="id1D0AD0355E3048ECA01C054A0D803818"><enum>(i)</enum><text>has the meaning
given the term in section 903 of the Electronic Transfer Fund Act (15 U.S.C.
1693a); and</text>
</clause><clause id="idEE524280F6D94E2C83457182A9BF2FEA"><enum>(ii)</enum><text>includes a
financial institution (as defined in section 509 of the Gramm-Leach-Bliley Act
(15 U.S.C. 6809)).</text>
</clause></subparagraph><subparagraph id="idF80DE3BEA4814B84A8CA323F22B66AC1"><enum>(D)</enum><header>Money
transmitting business; money transmitting service</header><text>The terms
<term>money transmitting business</term> and <term>money transmitting
service</term> have the meaning given the terms in section 5330(d) of title 31,
United States Code.</text>
</subparagraph><subparagraph id="idB6187FF36A414264931F0850123ABCC2"><enum>(E)</enum><header>Board</header><text>The
term <term>Board</term> means the Board of Governors of the Federal Reserve
System.</text>
</subparagraph></paragraph><paragraph id="id651518061B1D4B308F2F2491CA2384EB"><enum>(7)</enum><header>Policies and
procedures required to prevent restricted transactions</header>
<subparagraph id="id852FA52BB12349098750F71751F59AF8"><enum>(A)</enum><header>Regulations</header><text>The
Board shall promulgate regulations requiring—</text>
<clause id="id9706DCCF28E14C05BCE3C7A27CCC6FA8"><enum>(i)</enum><text>an operator of a
credit card system;</text>
</clause><clause id="id3296FA4B964940E6BA3D0771D3DF5623"><enum>(ii)</enum><text>an operator of
an international, national, regional, or local network used to effect a credit
transaction, an electronic fund transfer, or a money transmitting
service;</text>
</clause><clause id="id7C84CFE0E7C04922A9525D2AB533F284"><enum>(iii)</enum><text>an operator of
any other payment system that is centrally managed and is primarily engaged in
the transmission and settlement of credit transactions, electronic transfers or
money transmitting services where at least one party to the transaction or
transfer is an individual; and</text>
</clause><clause id="idA411595A11644FD7ABDAFA5F87ED5151"><enum>(iv)</enum><text>any other person
described in paragraph (2)(B) and specified by the Board in such
regulations,</text>
</clause><continuation-text continuation-text-level="subparagraph">to
establish policies and procedures that are reasonably designed to prevent the
introduction of a restricted transaction into a payment system or the
completion of a restricted transaction using a payment system.</continuation-text></subparagraph><subparagraph id="id64C6991E28EE4529B19E766588CEE394"><enum>(B)</enum><header>Requirements
for policies and procedures</header><text>In promulgating regulations under
subparagraph (A), the Board shall—</text>
<clause id="id13DA5B64A91C4A8899401D016CA1901D"><enum>(i)</enum><text>identify types of
policies and procedures, including nonexclusive examples, that shall be
considered to be reasonably designed to prevent the introduction of restricted
transactions into a payment system or the completion of restricted transactions
using a payment system; and</text>
</clause><clause id="id43AE51DC440344FF9804C412CEB11498"><enum>(ii)</enum><text>to the extent
practicable, permit any payment system, or person described in paragraph
(2)(B), as applicable, to choose among alternative means of preventing the
introduction or completion of restricted transactions.</text>
</clause></subparagraph><subparagraph id="id8B741CB062E94DE2BE063EFF64E7D7A0"><enum>(C)</enum><header>No liability
for blocking or refusing to honor restricted transaction</header>
<clause id="idDA0994CE2F8242949EA8BE6441E88311"><enum>(i)</enum><header>In
general</header><text>A payment system, or a person described in paragraph
(2)(B) that is subject to a regulation issued under this subsection, and any
participant in such payment system that prevents or otherwise refuses to honor
transactions in an effort to implement the policies and procedures required
under this subsection or to otherwise comply with this subsection shall not be
liable to any party for such action.</text>
</clause><clause id="idE4E5D24D2BB849FE853CF7D16592299F"><enum>(ii)</enum><header>Compliance</header><text>A
person described in paragraph (2)(B) meets the requirements of this subsection
if the person relies on and complies with the policies and procedures of a
payment system of which the person is a member or in which the person is a
participant, and such policies and procedures of the payment system comply with
the requirements of the regulations promulgated under subparagraph (A).</text>
</clause></subparagraph><subparagraph id="idB20188344AD94D858C93E973AB69310B"><enum>(D)</enum><header>Enforcement</header>
<clause id="idBDC1F7767966487AB9101BBED85EB65C"><enum>(i)</enum><header>In
general</header><text>This section shall be enforced by the Federal functional
regulators and the Federal Trade Commission under applicable law in the manner
provided in section 505(a) of the Gramm-Leach-Bliley Act (15 U.S.C.
6805(a)).</text>
</clause><clause id="id27D1813E8A5A46B49538001FECE22CBB"><enum>(ii)</enum><header>Factors to be
considered</header><text>In considering any enforcement action under this
subsection against a payment system or person described in paragraph (2)(B),
the Federal functional regulators and the Federal Trade Commission shall
consider the following factors:</text>
<subclause id="id1D831976ACDE4721A5787C703058660C"><enum>(I)</enum><text>The extent to
which the payment system or person knowingly permits restricted
transactions.</text>
</subclause><subclause id="idDA767204412849B3977082F23B75252A"><enum>(II)</enum><text>The history of
the payment system or person in connection with permitting restricted
transactions.</text>
</subclause><subclause id="id0E5370923EB04158A91717E565DEF359"><enum>(III)</enum><text>The extent to
which the payment system or person has established and is maintaining policies
and procedures in compliance with regulations prescribed under this
subsection.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="idF0A93997E8AA461FAE2D3B96F9E72464"><enum>(8)</enum><header>Transactions
permitted</header><text>A payment system, or a person described in paragraph
(2)(B) that is subject to a regulation issued under this subsection, is
authorized to engage in transactions with foreign pharmacies in connection with
investigating violations or potential violations of any rule or requirement
adopted by the payment system or person in connection with complying with
paragraph (7). A payment system, or such a person, and its agents and employees
shall not be found to be in violation of, or liable under, any Federal, State
or other law by virtue of engaging in any such transaction.</text>
</paragraph><paragraph id="idA2D5430BF0EF493B8501C7218AD700BB"><enum>(9)</enum><header>Relation to
State laws</header><text>No requirement, prohibition, or liability may be
imposed on a payment system, or a person described in paragraph (2)(B) that is
subject to a regulation issued under this subsection, under the laws of any
State with respect to any payment transaction by an individual because the
payment transaction involves a payment to a foreign pharmacy.</text>
</paragraph><paragraph id="idD4A4C21354D948DA9D7B6DBFE5CDA867"><enum>(10)</enum><header>Timing of
requirements</header><text>A payment system, or a person described in paragraph
(2)(B) that is subject to a regulation issued under this subsection, must adopt
policies and procedures reasonably designed to comply with any regulations
required under paragraph (7) within 60 days after such regulations are issued
in final
form.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id5B6FE23C26314981B6CC328FB4E95B59"><enum>(2)</enum><header>Effective
date</header><text>The amendment made by this subsection shall take effect on
the day that is 90 days after the date of enactment of this Act.</text>
</paragraph><paragraph id="id3A93F9C8FF82427A9853828DA232724C"><enum>(3)</enum><header>Implementation</header><text>The
Board of Governors of the Federal Reserve System shall promulgate regulations
as required by subsection (h)(7) of section 303 of the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 333), as added by paragraph (1), not later than 90 days
after the date of enactment of this Act.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID44323B23202841D0BF0C3B3D465583C8"><enum>(i)</enum><header>Importation
exemption under Controlled Substances Import and Export Act</header><text display-inline="yes-display-inline">Section 1006(a)(2) of the Controlled
Substances Import and Export Act (21 U.S.C. 956(a)(2)) is amended by striking
<quote>not import the controlled substance into the United States in an amount
that exceeds 50 dosage units of the controlled substance.</quote> and inserting
<quote>import into the United States not more than 10 dosage units combined of
all such controlled substances.</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id77EFAF8A4FF14D8CBF48E6E32F743B00"><enum>(j)</enum><header>Severability</header><text display-inline="yes-display-inline">If any provision of this section, an
amendment by this section, or the application of such provision or amendment to
any person or circumstance is held to be unconstitutional, the remainder of
this section, the amendments made by this section, and the application of the
provisions of such to any person or circumstance shall not affected
thereby.</text>
</subsection></section><section id="id1710BB18D0E340A19792C7DD1B5835F2"><enum>3004.</enum><header>Bringing down
prices for prescription drugs by extending 340B discounted drug pricing to
managed care organizations</header>
<subsection id="id0CE50B811BFD4AA5A5645AAFE983EC7C"><enum>(a)</enum><header>Short
title</header><text display-inline="yes-display-inline">This section may be
cited as the <quote><short-title>Drug Rebate Equalization
Act of 2009</short-title></quote>.</text>
</subsection><subsection id="ID8e8669e00b124983a50ed493c99bfb0c"><enum>(b)</enum><header>Extension of
prescription drug discounts to enrollees of Medicaid managed care
organizations</header>
<paragraph id="IDc75472f4eb66472eb57dc9880d3b2194"><enum>(1)</enum><header>In
general</header><text>Section 1903(m)(2)(A) (42 U.S.C. 1396b(m)(2)(A)) is
amended—</text>
<subparagraph id="IDd97072cf129f43fb8daf47e5ad0f7030"><enum>(A)</enum><text>in clause (xi),
by striking <quote>and</quote> at the end;</text>
</subparagraph><subparagraph id="ID829e55a5e7e14403b5a41818d44a1ca0"><enum>(B)</enum><text>in clause (xii),
by striking the period at the end and inserting <quote>; and</quote>;
and</text>
</subparagraph><subparagraph id="ID15b92783659c49d8a6d46d3900b40db2"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id6039FB8E101C4FE1A91A8D611A829CAC" style="OLC">
<clause id="IDcdf7b4a849064424a04af550922a6ce5"><enum>(xiii)</enum><text>such contract
provides that (I) payment for covered outpatient drugs dispensed to individuals
eligible for medical assistance who are enrolled with the entity shall be
subject to the same rebate required by the agreement entered into under section
1927 as the State is subject to, and (II) capitation rates paid to the entity
shall be based on actual cost experience related to rebates and subject to the
Federal regulations requiring actuarially sound
rates.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="ID2763a758de014747b0d353e72479aa45"><enum>(2)</enum><header>Conforming
amendments</header><text>Section 1927 (42 U.S.C. 1396r–8) is amended—</text>
<subparagraph id="idD2EBC2CBF8A647388B9D121F73FD4801"><enum>(A)</enum><text>in subsection
(d)—</text>
<clause id="idD2073888B9C648A4ACC0BE1B52243D42"><enum>(i)</enum><text>in
paragraph (1), by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id877622738507457983DA97641D00D36F" style="OLC">
<subparagraph id="ID8eb6c46464644b28a5a8b2ff2ce1dc6f"><enum>(C)</enum><text>Notwithstanding
the subparagraphs (A) and (B)—</text>
<clause id="id283BDD46FE0E4D8696DA3D5828D958A4"><enum>(i)</enum><text>a
Medicaid managed care organization with a contract under section 1903(m) may
exclude or otherwise restrict coverage of a covered outpatient drug on the
basis of policies or practices of the organization, such as those affecting
utilization management, formulary adherence, and cost sharing or dispute
resolution, in lieu of any State policies or practices relating to the
exclusion or restriction of coverage of such drugs, provided, however, that any
such exclusions and restrictions of coverage shall be subject to any
contractual requirements and oversight by the State as contained in the
Medicaid managed care organization's contract with the State, and the State
shall maintain approval authority over the formulary used by the Medicaid
managed care organization; and</text>
</clause><clause id="idFC5C129DE12E46749F8297700F7E3572"><enum>(ii)</enum><text>nothing in this
section or paragraph (2)(A)(xiii) of section 1903(m) shall be construed as
requiring a Medicaid managed care organization with a contract under such
section to maintain the same such policies and practices as those established
by the State for purposes of individuals who receive medical assistance for
covered outpatient drugs on a fee-for-service
basis.</text>
</clause></subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause><clause id="id8E6435C2937F41E3A4C3A9505713E347"><enum>(ii)</enum><text>in
paragraph (4), by inserting after subparagraph (E) the following:</text>
<quoted-block display-inline="no-display-inline" id="idC1DF3D3C5E874ED5BBD0352F9F8F89A2" style="OLC">
<subparagraph id="ID3dbe40c4dbe34be793f21c578bcb155d"><enum>(F)</enum><text>Notwithstanding
the preceding subparagraphs of this paragraph, any formulary established by
Medicaid managed care organization with a contract under section 1903(m) may be
based on positive inclusion of drugs selected by a formulary committee
consisting of physicians, pharmacists, and other individuals with appropriate
clinical experience as long as drugs excluded from the formulary are available
through prior authorization, as described in paragraph
(5).</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="id7D8BF574632B4D7E8F085E22E8140085"><enum>(B)</enum><text>in subsection
(j), by striking paragraph (1) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idDE70D2737D1749E8A55B7EE3000FB700" style="OLC">
<paragraph id="ID0fae307dd0be4160adfe2f5810610be8"><enum>(1)</enum><text>Covered
outpatients drugs are not subject to the requirements of this section if such
drugs are—</text>
<subparagraph id="ID96190a79f35248c48a8a59114d9498db"><enum>(A)</enum><text>dispensed by
health maintenance organizations, including Medicaid managed care organizations
that contract under section 1903(m); and</text>
</subparagraph><subparagraph id="ID1672274957944deab33c5662b5889e69"><enum>(B)</enum><text>subject to
discounts under section 340B of the Public Health Service
Act.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id1C888A4CBD9B42D09A6BE0F603388B13"><enum>(3)</enum><header>Reports</header><text>Each
State with a contract with a Medicaid managed care organization under section
1903(m) of the Social Security Act (42 U.S.C. 1396b(m)) shall report to the
Secretary on a quarterly basis the total amount of rebates in dollars and
volume received from manufacturers (as defined in section 1927(k)(5) of such
Act (42 U.S.C. 1396r–8(k)(5)) for drugs provided to individuals enrolled with
such an organization as a result of the amendments made by this section for
both brand-name and generic drugs. The Secretary shall review the reports
submitted by States under this subsection and, after such review, make
publically available the aggregate data contained in such reports.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID649304efa50840f28a7dc36790960aeb"><enum>(4)</enum><header>Effective
date</header><text>This section and the amendments made by this section take
effect on the date of enactment of this Act and apply to rebate agreements
entered into or renewed under section 1927 of the Social Security Act (42
U.S.C. 1396r–8) on or after such date.</text>
</paragraph></subsection></section><section id="ID84c3459435554ee9ace55af71bfe7686"><enum>3005.</enum><header>Bringing down
prices for prescription drugs by increasing the Medicaid drug
rebate</header><text display-inline="no-display-inline">Section
1927(c)(1)(B)(i) of the Social Security Act (42 U.S.C. 1396r–8(c)(1)(B)(i)) is
amended—</text>
<paragraph id="IDf5d5f286b03a4030aebf634824c0f66e"><enum>(1)</enum><text>in subclause
(IV), by striking <quote>and</quote> after the semicolon;</text>
</paragraph><paragraph id="ID4089f09b01764c099b7e078aa2cbda33"><enum>(2)</enum><text>in subclause
(V)—</text>
<subparagraph id="ID2b5e3fb684ce418a95f6b7f73d924f36"><enum>(A)</enum><text>by inserting
<quote>and before January 1, 2010,</quote> after <quote>1995,</quote>;
and</text>
</subparagraph><subparagraph id="IDd9273e1b83b142e1a72c97fd7d0949fd"><enum>(B)</enum><text>by striking the
period and inserting <quote>; and</quote>; and</text>
</subparagraph></paragraph><paragraph id="IDe95bc14021944a1fa3dfbd64b813ab64"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="idD293413A9C9F4290829039EDDD0EF171" style="OLC">
<subclause id="IDa63c8660f6244affafcd31482329cdb2"><enum>(VI)</enum><text>after December
31, 2009, is 20
percent.</text>
</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="idFACC3D414299476A9125061B137B3221"><enum>3006.</enum><header>Ending
taxpayer subsidies for exporters</header>
<subsection id="id9B0E584A662E4392B2BF4D7EE1E95427"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Not later than 1 year
after the date of the enactment of this Act, the Secretary of Commerce shall
develop and implement a program to impose fees on businesses that benefit from
the trade promotion activities of the International Trade
Administration.</text>
</subsection><subsection id="id8F915E32627D4762AF324BF089FB6CFF"><enum>(b)</enum><header>Budget
neutrality</header><text display-inline="yes-display-inline">The fees shall be
imposed in an amount that ensures that any Federal expenditures on trade
promotion activities of the International Trade Administration are offset by
the fees collected under the program in a budget neutral manner.</text>
</subsection></section><section id="id91DD3BA98B7B4394A51C3661A63A50FE"><enum>3007.</enum><header>Reducing
taxpayer subsidies for exporters of agriculture commodities</header><text display-inline="no-display-inline">Section 211(c)(1)(A) of the Agricultural
Trade Act of 1978 (7 U.S.C. 5641(c)(1)(A)) is amended by striking <quote>and
$200,000,000 for each of fiscal years 2008 through 2012</quote> and inserting
<quote>$200,000,000 for each of fiscal years 2008 and 2009, and $160,000,000
for each of fiscal years 2010 through 2012</quote>.</text>
</section><section id="id4D9F4FF1C987474A94B3DCE5DC27E18C"><enum>3008.</enum><header>Making
companies pay when they fail FDA quality inspections</header>
<subsection id="id703F99C35F3942A3954DF88A73FE4CDA"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Secretary shall
assess and collect a user fee from each facility registered under section 415
of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 350d), establishment
registered under section 510 of such Act (21 U.S.C. 360), and facility
described in section 351(a)(1)(C) of the Public Health Service Act (42 U.S.C.
262(1)(C)) for which a followup reinspection is required to ensure correction
of a violation found by the Secretary during initial inspection of the facility
or establishment of a good manufacturing practices requirement under the
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301 et seq.).</text>
</subsection><subsection id="idC4AB6CBEF3F940F6B866CF7FE439138E"><enum>(b)</enum><header>Payment of
fee</header><text>The user fee required under subsection (a) shall be due from
a facility or establishment described in such subsection upon the reinspection
of such facility or establishment, as described in subsection (a).</text>
</subsection><subsection id="idB6740183220E4C8C883731D2732D9FFB"><enum>(c)</enum><header>Amount of user
fee</header><text>The amount of the user fee required under subsection (a)
shall be established by the Secretary.</text>
</subsection><subsection id="idAAEEBA5DCBF24EC68AF672DE956A4B98"><enum>(d)</enum><header>Definitions</header><text>For
purposes of this section—</text>
<paragraph id="id0DA4F0BF896D4FD8AD85FECBE3AC6D6A"><enum>(1)</enum><text>the terms
<term>animal drug</term>, <term>device</term>, <term>drug</term>, and
<term>food</term> have the meanings given those terms in section 201 of the
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321);</text>
</paragraph><paragraph id="idF4D52080ABAC4C51B1721375B160D4BC"><enum>(2)</enum><text>the term
<term>biological product</term> has the meaning given the term in section 351
of the Public Health Service Act (42 U.S.C. 262); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id19EB3002810B499EBBA1455CD0D3D98B"><enum>(3)</enum><text>the term
<term>Secretary</term> means the Secretary of Health and Human Services.</text>
</paragraph></subsection></section><enum>IV</enum><header>Ending taxpayer
subsidies for big agribusinesses</header>
<section id="id012C727524B34EC6BFF6309742048416"><enum>4001.</enum><header>Reforming
irrigation subsidies</header>
<subsection changed="added" id="ID928041DB7ECD44CF897302A9C68B82A9"><enum>(a)</enum><header>Definitions</header><text>Section
202 of the Reclamation Reform Act of 1982 (<external-xref legal-doc="usc" parsable-cite="usc/43/390bb">43 U.S.C. 390bb</external-xref>) is
amended—</text>
<paragraph id="IDE3B9B1C8003144BDB41ECFEE00BE6CB9"><enum>(1)</enum><text>by redesignating
paragraphs (7), (8), (9), (10), and (11) as paragraphs (9), (10), (11), (12),
and (13), respectively;</text>
</paragraph><paragraph id="IDB2D76889145841A7BC00BECA99875FB7"><enum>(2)</enum><text>in paragraph (6),
by striking <quote>owned or operated under a lease which</quote> and inserting
<quote>that is owned, leased, or operated by an individual or legal entity and
that</quote>;</text>
</paragraph><paragraph id="ID8FB2B29082C04296940094D12B098764"><enum>(3)</enum><text>by inserting
after paragraph (6) the following:</text>
<quoted-block changed="added" id="ID3CA0FAABFDEA4822986921080357B02C">
<paragraph id="ID6DDE5227B7B44BFB90856FE5D88BF9E4"><enum>(7)</enum><header>Legal
entity</header><text>The term <term>legal entity</term> includes a corporation,
association, partnership, trust, joint tenancy, or tenancy in common, or any
other entity that owns, leases, or operates a farm operation for the benefit of
more than 1 individual under any form of agreement or arrangement.</text>
</paragraph><paragraph id="ID9F47817BBD554681AE428FE40311DED7"><enum>(8)</enum><header>Operator</header>
<subparagraph id="IDEC656E293D5B429F87B7A5D6AB55644E"><enum>(A)</enum><header>In
general</header><text>The term <term>operator</term>—</text>
<clause id="ID2A08E0A19D8B4A80A424EF654B40E5AC"><enum>(i)</enum><text>means an
individual or legal entity that operates a single farm operation on a parcel
(or parcels) of land that is owned or leased by another person (or persons)
under any form of agreement or arrangement (or agreements or arrangements);
and</text>
</clause><clause id="ID7F9FA6DD99054BA3883F939112D5CE17"><enum>(ii)</enum><text>if the
individual or legal entity—</text>
<subclause id="IDC54B4AC175DC4D11B13DE8D6DBA70095"><enum>(I)</enum><text>is an employee of
an individual or legal entity, includes the individual or legal entity;
or</text>
</subclause><subclause id="ID06344E3B06684B84008712D768F600DA"><enum>(II)</enum><text>is a legal
entity that controls, is controlled by, or is under common control with another
legal entity, includes each such other legal entity.</text>
</subclause></clause></subparagraph><subparagraph id="ID72239E6D80824DB9899E9EF43C396846"><enum>(B)</enum><header>Operation of a
farm operation</header><text>For the purposes of subparagraph (A), an
individual or legal entity shall be considered to operate a farm operation if
the individual or legal entity is the person that performs the greatest
proportion of the decisionmaking for and supervision of the agricultural
enterprise on land served with irrigation
water.</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDFA2894DFEEBE43399225EC44CD46D0EF"><enum>(4)</enum><text>by adding at the
end the following:</text>
<quoted-block changed="added" id="ID2CB8A64CEE044B0F83B1494E0992EFD2">
<paragraph id="ID4C22D31EE290456BBCCBE8D5BA037C00"><enum>(14)</enum><header>Single farm
operation</header>
<subparagraph id="ID123A1B74C7F64BAEA0BC9C0050616285"><enum>(A)</enum><header>In
general</header><text>The term <term>single farm operation</term> means the
total acreage of land served with irrigation water for which an individual or
legal entity is the operator.</text>
</subparagraph><subparagraph id="ID9CC9CF640BBB48BAB4E9F265F1C8DEEE"><enum>(B)</enum><header>Rules for
determining whether separate parcels are operated as a single farm
operation</header>
<clause id="ID910229AA1192409CB893C6044103D0DF"><enum>(i)</enum><header>Equipment- and
labor-sharing activities</header><text>The conduct of equipment- and
labor-sharing activities on separate parcels of land by separate individuals or
legal entities shall not by itself serve as a basis for concluding that the
farming operations of the individuals or legal entities constitute a single
farm operation.</text>
</clause><clause id="ID5EDF45B9CC61408D97BE009877C79CB6"><enum>(ii)</enum><header>Performance of
certain services</header><text>The performance by an individual or legal entity
of an agricultural chemical application, pruning, or harvesting for a farm
operation on a parcel of land shall not by itself serve as a basis for
concluding that the farm operation on that parcel of land is part of a single
farm operation operated by the individual or entity on other parcels of
land.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection changed="added" id="IDDD446730CCC84B0F88FA4D81E3DC9271"><enum>(b)</enum><header>Identification
of owners, lessees, and operators and of single farm
operations</header><text>The Reclamation Reform Act of 1982 (<external-xref legal-doc="usc" parsable-cite="usc/43/390aa">43 U.S.C. 390aa</external-xref> et
seq.) is amended by inserting after section 201 the following:</text>
<quoted-block changed="added" id="IDD9E133BE5EFE4C2889EAC568FE705E12">
<section id="ID28C276C6FFAE44BA977FBB756B8B6CE0"><enum>201A.</enum><header>Identification
of owners, lessees, and operators and of single farm operations</header>
<subsection id="ID01421208DE044690921195CBE94F9E31"><enum>(a)</enum><header>In
general</header><text>Subject to subsection (b), for each parcel of land to
which irrigation water is delivered or proposed to be delivered, the Secretary
shall identify a single individual or legal entity as the owner, lessee, or
operator.</text>
</subsection><subsection id="IDF9BC7AA8366F4FCD8F00CB31A4BB58D1"><enum>(b)</enum><header>Shared
decisionmaking and supervision</header><text>If the Secretary determines that
no single individual or legal entity is the owner, lessee, or other individual
that performs the greatest proportion of decisionmaking for and supervision of
the agricultural enterprise on a parcel of land—</text>
<paragraph id="IDFBF6BA57A96446E3AA4350DEF430BB2D"><enum>(1)</enum><text>all individuals
and legal entities that own, lease, or perform a proportion of decisonmaking
and supervision that is equal as among themselves but greater than the
proportion performed by any other individual or legal entity shall be
considered jointly to be the owner, lessee, or operator; and</text>
</paragraph><paragraph id="ID3150FF087BDC43C89E00C0E5F000008E"><enum>(2)</enum><text>all parcels of
land of which any such individual or legal entity is the owner, lessee, or
operator shall be considered to be part of the single farm operation of the
owner, lessee, or operator identified under subsection
(1).</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection changed="added" id="ID10BDA786B6BA43BCB0A851CD851D15CF"><enum>(c)</enum><header>Pricing</header><text>Section
205 of the Reclamation Reform Act of 1982 (<external-xref legal-doc="usc" parsable-cite="usc/43/390ee">43 U.S.C. 390ee</external-xref>) is amended by
adding at the end the following:</text>
<quoted-block changed="added" id="ID32B62F474ECF4639BB683DAA4796D691">
<subsection id="ID639E16304F7842028D540855C2B503D7"><enum>(d)</enum><header>Single farm
operations generating more than $500,000 in gross farm income</header>
<paragraph id="ID685AD7C6931A47509D732721ADFA2DB0"><enum>(1)</enum><header>In
general</header><text>Notwithstanding subsections (a), (b), and (c), in the
case of—</text>
<subparagraph id="IDEF6A5759341141CABC86F9B31236169B"><enum>(A)</enum><text>a qualified
recipient that reports gross farm income from a single farm operation in excess
of $500,000 for a taxable year; or</text>
</subparagraph><subparagraph id="ID8FAB0E315FA54B1DBD6BBE56D57E8FB0"><enum>(B)</enum><text>a limited
recipient that received irrigation water on or before October 1, 1981, and that
reports gross farm income from a single farm operation in excess of $500,000
for a taxable year;</text>
</subparagraph><continuation-text continuation-text-level="paragraph">irrigation water may be delivered to
the single farm operation of the qualified recipient or limited recipient at
less than full cost to a number of acres that does not exceed the number of
acres determined under paragraph (2).</continuation-text></paragraph><paragraph id="IDAD23541FA31343FC9CB771FE246222DC"><enum>(2)</enum><header>Maximum number
of acres to which irrigation water may be delivered at less than full
cost</header><text>The number of acres determined under this subparagraph is
the number equal to the number of acres of the single farm operation multiplied
by a fraction, the numerator of which is $500,000 and the denominator of which
is the amount of gross farm income reported by the qualified recipient or
limited recipient in the most recent taxable year.</text>
</paragraph><paragraph id="IDFF9DE6EE80E8401BB9A7007000B2EA16"><enum>(3)</enum><header>Inflation
adjustment</header>
<subparagraph id="ID03D69FC0E1484C95886CF434006E038D"><enum>(A)</enum><header>In
general</header><text>The $500,000 amount under paragraphs (1) and (2) for any
taxable year beginning in a calendar year after 2004 shall be equal to the
product of—</text>
<clause id="ID3C4AA97017F64E63AFF01C3C0602DA8D"><enum>(i)</enum><text>$500,000,
multiplied by</text>
</clause><clause id="IDDE53B66EE6EE452A9409FECACF3DFB57"><enum>(ii)</enum><text>the inflation
adjustment factor for the taxable year.</text>
</clause></subparagraph><subparagraph id="IDB71E7CED2EBB41F7BAF933842FE5893F"><enum>(B)</enum><header>Inflation
adjustment factor</header><text>The term <term>inflation adjustment
factor</term> means, with respect to any calendar year, a fraction the
numerator of which is the GDP implicit price deflator for the preceding
calendar year and the denominator of which is the GDP implicit price deflator
for 2004. Not later than April 1 of any calendar year, the Secretary shall
publish the inflation adjustment factor for the preceding calendar year.</text>
</subparagraph><subparagraph id="IDF9DB7590A3BC425400867E3135025CBD"><enum>(C)</enum><header>GDP implicit
price deflator</header><text>For purposes of subparagraph (B), the term
<term>GDP implicit price deflator</term> means the first revision of the
implicit price deflator for the gross domestic product as computed and
published by the Secretary of Commerce.</text>
</subparagraph><subparagraph id="ID01E09DE7674140FAA76BE394AF8C7BEA"><enum>(D)</enum><header>Rounding</header><text>If
any increase determined under subparagraph (A) is not a multiple of $100, the
increase shall be rounded to the next lowest multiple of
$100.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection changed="added" id="IDBEDB4AE8CFD143AC94E8D318CCF95160"><enum>(d)</enum><header>Certification
of compliance</header><text>Section 206 of the Reclamation Reform Act of 1982
(<external-xref legal-doc="usc" parsable-cite="usc/43/390ff">43 U.S.C.
390ff</external-xref>) is amended to read as follows:</text>
<quoted-block changed="added" id="IDC8857D036FAD4695AE99EB05B3754C32">
<section id="IDE41440E88C0F4D4387521D39C274BB7B"><enum>206.</enum><header>Certification
of compliance</header>
<subsection id="ID0B9625F5B1E8480CA9ABCAE0E14908BB"><enum>(a)</enum><header>In
general</header><text>As a condition to the receipt of irrigation water for
land in a district that has a contract described in section 203, each owner,
lessee, or operator in the district shall furnish the district, in a form
prescribed by the Secretary, a certificate that the owner, lessee, or operator
is in compliance with this title, including a statement of the number of acres
owned, leased, or operated, the terms of any lease or agreement pertaining to
the operation of a farm operation, and, in the case of a lessee or operator, a
certification that the rent or other fees paid reflect the reasonable value of
the irrigation water to the productivity of the land.</text>
</subsection><subsection id="IDEE9573D64C7A42EF93F6BB8FC0A06E24"><enum>(b)</enum><header>Documentation</header><text>The
Secretary may require a lessee or operator to submit for the Secretary’s
examination—</text>
<paragraph id="IDB62EA00B4E0D4334A5CC86D35B0026D7"><enum>(1)</enum><text>a complete copy
of any lease or other agreement executed by each of the parties to the lease or
other agreement; and</text>
</paragraph><paragraph id="ID63F3E83FF3C345F2B173B4764E18D400"><enum>(2)</enum><text>a copy of the
return of income tax imposed by chapter 1 of the Internal Revenue Code of 1986
for any taxable year in which the single farm operation of the lessee or
operator received irrigation water at less than full
cost.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection changed="added" id="IDC16B89F415214D8A8564B0D1C9049F00"><enum>(e)</enum><header>Trusts</header><text>Section
214 of the Reclamation Reform Act of 1982 (<external-xref legal-doc="usc" parsable-cite="usc/43/390nn">43 U.S.C. 390nn</external-xref>) is
repealed.</text>
</subsection><subsection changed="added" id="IDEF1890E0A0B14A4E80C618A975CCA141"><enum>(f)</enum><header>Administrative
provisions</header>
<paragraph id="ID90246D1763CD43E19D769FD7473641DB"><enum>(1)</enum><header>Penalties</header><text>Section
224(c) of the Reclamation Reform Act of 1982 (<external-xref legal-doc="usc" parsable-cite="usc/43/390ww(c)">43 U.S.C. 390ww(c)</external-xref>) is
amended—</text>
<subparagraph id="IDAE9C0A2BB0A34920949C1281A1B8FAE9"><enum>(A)</enum><text>by striking
<quote>(c) The Secretary</quote> and inserting the following:</text>
<quoted-block changed="added" id="ID7EFBDA46BBA44515B2BC4BBDE01D5C16">
<subsection id="ID550E5913A05A43759C34AE28FD0000CF"><enum>(c)</enum><header>Regulations;
data collection; penalties</header>
<paragraph id="ID046C171926FF45C6B8F22D7EFFBD2F49"><enum>(1)</enum><header>Regulations;
data collection</header><text>The
Secretary</text>
</paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="IDAC8007215AAB476092EB2CDE00375D2E"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block changed="added" id="ID416EFDE2023449399CF4D5E6CA7B5CB5">
<paragraph id="IDC3C6B2067469466E95783B368B70FC9B"><enum>(2)</enum><header>Penalties</header><text>Notwithstanding
any other provision of law, the Secretary shall establish appropriate and
effective penalties for failure to comply with any provision of this Act or any
regulation issued under this
Act.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="ID1E49752E3BB34C1AB34DC15376995D7F"><enum>(2)</enum><header>Interest</header><text>Section
224(i) of the Reclamation Reform Act of 1982 (<external-xref legal-doc="usc" parsable-cite="usc/43/390ww(i)">43 U.S.C. 390ww(i)</external-xref>) is amended
by striking the last sentence and inserting the following: <quote>The interest
rate applicable to underpayments shall be equal to the rate applicable to
expenditures under section 202(3)(C).</quote>.</text>
</paragraph></subsection><subsection changed="added" id="ID81CD3848AFDD441EA6BB015C84D566BE"><enum>(g)</enum><header>Reporting</header><text>Section
228 of the Reclamation Reform Act of 1982 (<external-xref legal-doc="usc" parsable-cite="usc/43/390zz">43 U.S.C. 390zz</external-xref>) is amended by
inserting <quote>operator or</quote> before <quote>contracting entity</quote>
each place it appears.</text>
</subsection><subsection changed="added" id="ID8681AD81942B417BB69132A8D0B04E67"><enum>(h)</enum><header>Memorandum of
understanding</header><text>The Reclamation Reform Act of 1982 (<external-xref legal-doc="usc" parsable-cite="usc/43/390aa">43 U.S.C. 390aa</external-xref> et
seq.) is amended—</text>
<paragraph id="IDA20934BDC84445D3B3BD47729B71B6FF"><enum>(1)</enum><text>by redesignating
sections 229 and 230 as sections 230 and 231; and</text>
</paragraph><paragraph id="IDC8599AC3E13E472EA1B7005B2CE95E52"><enum>(2)</enum><text>by inserting
after section 228 the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID994E4989E6C34FCA915E36FB28CAEA64" style="OLC">
<section commented="no" display-inline="no-display-inline" id="ID1DD9E00FFE1D4FF8B6E779A424561B71" section-type="subsequent-section"><enum>229.</enum><header>Memorandum of
understanding</header><text display-inline="no-display-inline">The Secretary,
the Secretary of the Treasury, and the Secretary of Agriculture shall enter
into a memorandum of understanding or other appropriate instrument to permit
the Secretary, notwithstanding section 6103 of the Internal Revenue Code of
1986, to have access to and use of available information collected or
maintained by the Department of the Treasury and the Department of Agriculture
that would aid enforcement of the ownership and pricing limitations of Federal
reclamation
law.</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="idD713F16B48DE40D082C222620940FF79"><enum>4002.</enum><header>Reforming
crop insurance subsidies</header>
<subsection id="id8B3EF2925D3243D288CFE15F6A493006"><enum>(a)</enum><header>Federal share
of risk</header><text>Section 508(k)(3) of the Federal Crop Insurance Act (7
U.S.C. 1508(k)(3)) is amended—</text>
<paragraph id="IDf09454d494ef4b3ebaefacf10b972d58"><enum>(1)</enum><text>by striking
<quote>require the</quote> and inserting “require—</text>
<quoted-block display-inline="no-display-inline" id="id2BFAAE9A046147C1B630394F0291E0E2" style="OLC">
<subparagraph id="ID9b08c61d07e54de3b0469182aee0ebee"><enum>(A)</enum><text>the</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID7b821eed07794d63b04037b0b90c7393"><enum>(2)</enum><text>by striking the
period at the end and inserting <quote>; and</quote>; and</text>
</paragraph><paragraph id="ID9ba7db14a51749dc893df8e55d744a79"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id508EBC5947114FA18A186085DDF5DFF1" style="OLC">
<subparagraph id="ID584798e198d84d0798800386ca291aba"><enum>(B)</enum><text>the cumulative
underwriting gain or loss, and the associated premium and losses with such
amount, calculated under any reinsurance agreement (except livestock) ceded to
the Corporation by each approved insurance provider to be not less than 20
percent.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="idB6DCDC394E864944A4F3A2AFB55115FF"><enum>(b)</enum><header>Reimbursement
rate</header><text display-inline="yes-display-inline">Section 508 of the
Federal Crop Insurance Act (7 U.S.C. 1508) is amended—</text>
<paragraph id="idE8F751CBAFEC456586CF6033CECED568"><enum>(1)</enum><text>in subsection
(b)(11), by striking <quote>6 percent</quote> and inserting <quote>4
percent</quote>; and</text>
</paragraph><paragraph id="idB79104B383AD4BE8A02A2340EE5D32FA"><enum>(2)</enum><text>in subsection
(k)(4)—</text>
<subparagraph id="idC023BB18A4834CD98EAEAF805C89DAC4"><enum>(A)</enum><text display-inline="yes-display-inline">in subparagraph (E)—</text>
<clause id="idFE5A55B27F3949F499D1BC698E9119B6"><enum>(i)</enum><text display-inline="yes-display-inline">by striking <quote>2009</quote> and
inserting <quote>2011</quote>; and</text>
</clause><clause id="idB0C46DE6351B4D3A8E173DED2E2D8DFB"><enum>(ii)</enum><text>by
striking <quote>2.3 percent</quote> and inserting <quote>4.3 percent</quote>;
and</text>
</clause></subparagraph><subparagraph id="id31BA9E5656304487B42A4538FAE63391"><enum>(B)</enum><text>in subparagraph
(F)—</text>
<clause id="id5EFFD0D7223C4D5CB8E7EE860465B88B"><enum>(i)</enum><text>by
striking <quote>2009</quote> and inserting <quote>2011</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id2EBE19A02C064BF8AE401D1A68B416FC"><enum>(ii)</enum><text>by striking
<quote>12 percent</quote> and inserting <quote>10 percent</quote>.</text>
</clause></subparagraph></paragraph></subsection></section><section id="id9929ACB0BCF042FE90BF1834B80467E7"><enum>4003.</enum><header>Reducing
direct payments to large landowners</header>
<subsection id="idE421E611FA6A4238866C9E6F3D601EEA"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 1001(b)(1)(A)
of the Food Security Act of 1985 (7 U.S.C. 1308(b)(1)(A)) is amended by
striking <quote>of that Act, $40,0000; or</quote> and inserting “of that
Act—</text>
<quoted-block display-inline="no-display-inline" id="id93423874682D4826B1B50DAD4CECE619" style="OLC">
<clause id="id97EBBD4F2D454EB9A4E64B051258BC93"><enum>(i)</enum><text>$40,000;
or</text>
</clause><clause id="id5706457091264669BD04F032BF4A4D5B"><enum>(ii)</enum><text>if the national
average market price received by producers during the 12-month marketing year
for a covered commodity (as determined by the Secretary) is more than 110
percent of the target price for the covered commodity (as determined under
section 1104(c) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C.
8714(c)), $20,000;
or</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id5A6E7A0218494CD6AD5A0006F1B92439"><enum>(b)</enum><header>Peanuts</header><text display-inline="yes-display-inline">Section 1001(c)(1)(A) of the Food Security
Act of 1985 (7 U.S.C. 1308(c)(1)(A)) is amended by striking <quote>of that Act,
$40,000; or</quote> and inserting “of that Act—</text>
<quoted-block display-inline="no-display-inline" id="id4C915CA66F4E4355B70140E1738753AA" style="OLC">
<clause id="id9AB194A0CEF34FDC9CD90672645BBFD0"><enum>(i)</enum><text>$40,000;
or</text>
</clause><clause id="id0BD3DD6C592149678266B3DA8E34859F"><enum>(ii)</enum><text>if the national
average market price received by producers during the 12-month marketing year
for peanuts (as determined by the Secretary) is more than 110 percent of the
target price for peanuts (as determined under section 1304(c) of the Food,
Conservation, and Energy Act of 2008 (7 U.S.C. 8754(c)), $20,000;
or</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="idD9B04380592B4386BB0CD18434A6637B"><enum>4004.</enum><header>Cutting farm
subsidies for high-income individuals</header><text display-inline="no-display-inline">Section 1001D(b)(1) of the Food Security Act
of 1985 (7 U.S.C. 1308–3a(b)(1)) is amended—</text>
<paragraph id="idED904DD8B3C246CCB848076718FE5EA0"><enum>(1)</enum><text>by striking
subparagraphs (A) and (B) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id678502556EA748A490CEC7ECC80FCF35" style="OLC">
<subparagraph id="id88E98FBE2E0E44ACB1358AEA25BE7D3A"><enum>(A)</enum><header>Nonfarm
limitations</header>
<clause id="id51FA3DA8BC47476E854DD6BCBBA77D17"><enum>(i)</enum><header>Prohibition</header><text>Notwithstanding
any other provision of law, a person or legal entity shall not be eligible to
receive any benefit described in subparagraph (C) during a crop, fiscal, or
program year, as appropriate, if the average adjusted gross nonfarm income of
the person or legal entity exceeds $250,000.</text>
</clause><clause id="id976189E3FAD446DABE7BE2CD6BD4FD4A"><enum>(ii)</enum><header>Partial
eligibility</header><text>Notwithstanding any other provision of law, a person
or legal entity the average adjusted gross nonfarm income of which is more than
$100,000 but less than $250,000 shall be eligible to receive only 66 percent of
any benefit described in subparagraph (C) during a crop, fiscal, or program
year, as appropriate.</text>
</clause></subparagraph><subparagraph id="id4F3241890507465C83C9C87FC209B442"><enum>(B)</enum><header>Farm
limitation</header>
<clause id="id1C8CE88BFE2E4BFCA76466588ACAF306"><enum>(i)</enum><header>Prohibition</header><text>Notwithstanding
any other provision of law, a person or legal entity shall not be eligible to
receive any benefit described in subparagraph (C) during a crop, fiscal, or
program year, as appropriate, if the average adjusted gross farm income of the
person or legal entity exceeds $750,000.</text>
</clause><clause id="id44FF13B9B6E2482F803877921B21E881"><enum>(ii)</enum><header>Partial
eligibility</header><text>Notwithstanding any other provision of law, a person
or legal entity the average adjusted gross farm income of which is more than
$500,000 but less than $750,000 shall be eligible to receive only 66 percent of
any benefit described in subparagraph (C) during a crop, fiscal, or program
year, as appropriate.</text>
</clause></subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id82C3C1E567C346B88B3ABE8F5A432BEF"><enum>(2)</enum><text>in subparagraph
(C), by striking <quote>Subparagraph (A) applies</quote> and inserting
<quote>Subparagraphs (A) and (B) apply</quote>.</text>
</paragraph></section><section id="id39D7F3FAE4B44EDAB4DD02E759906BF2"><enum>4005.</enum><header>Eliminating
the cotton storage subsidy</header>
<subsection id="id2AD5CB0304FB40D1AE5162B8210F9CA5"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 1204 of the
Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8734) is amended—</text>
<paragraph id="idAA7A19647A2F4FE5AA8E4BC0D09862A2"><enum>(1)</enum><text display-inline="yes-display-inline">by striking subsection (g); and</text>
</paragraph><paragraph id="idD89963F13AC54A9CA629E5A50A8AFBA8"><enum>(2)</enum><text>by redesignating
subsection (h) as subsection (g).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idB716600923E1479890CCE0D7E3785F76"><enum>(b)</enum><header>Application</header><text>The
amendments made by subsection (a) apply effective beginning with the 2010 crop
year.</text>
</subsection></section><section id="id796839096B9440679C5E9750F8D1F0FF"><enum>4006.</enum><header>Ending
subsidized grazing fees</header><text display-inline="no-display-inline">Section 6(a) of the Public Rangelands
Improvement Act of 1978 (43 U.S.C. 1905) is amended—</text>
<paragraph id="idA3412BE589D94B2F9FD546C56F3E5233"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>For the grazing years
1979 through 1985, the</quote> and inserting <quote>The</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idF15FC8359FFB4D67A9932F8EC8D85E6B"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>the $1.23 base</quote>
and all that follows through <quote>previous year’s fee</quote> and inserting
<quote>an amount that is at the same level as the State in which the land is
located charges for public grazing on land owned by the State, as determined by
the Secretary of Agriculture and the Secretary of the Interior, as
appropriate</quote>.</text>
</paragraph></section><enum>V</enum><header>Ending taxpayer
subsidies for the use of public resources and government services</header>
<section id="id0046A108C8DB49878D0C3CDF4981284D"><enum>5001.</enum><header>Preventing
giveaways of the public spectrum</header><text display-inline="no-display-inline">Section 309(j)(11) of the Communications Act
of 1934 (47 U.S.C. 309(j)(11)) is amended by striking <quote>2012</quote> and
inserting <quote>2019</quote>.</text>
</section><section id="id949EA7361C184EC2989685F835FDC983"><enum>5002.</enum><header>Eliminating
double subsidies for hardrock mining by repealing percentage depletion
allowances</header>
<subsection commented="no" display-inline="no-display-inline" id="ID0D3ABE6A97134D06A64D8EE06C0638DE"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 613(a) of the Internal Revenue Code
of 1986 (relating to percentage depletion) is amended by inserting
<quote>(other than hardrock mines located on lands subject to the general
mining laws or on land patented under the general mining laws)</quote> after
<quote>In the case of the mines</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDE0D522CEBE4E4809914B9200F504DAFD"><enum>(b)</enum><header display-inline="yes-display-inline">General mining laws defined</header><text display-inline="yes-display-inline">Section 613 of the Internal Revenue Code of
1986 is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="IDAC6624A0421047F7ADC31D8B811221F1" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="ID908D3D597FDF475D00FEA4C3005CC6CC"><enum>(f)</enum><header display-inline="yes-display-inline">General mining laws</header><text display-inline="yes-display-inline">For purposes of subsection (a), the term
<term>general mining laws</term> means those Acts which generally comprise
chapters 2, 12A, and 16, and sections 161 and 162 of title 30 of the United
States
Code.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID9F4A852E75F745B2A5241F831F2CF273"><enum>(c)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to taxable years beginning after December 31,
2009.</text>
</subsection></section><section id="id6DB018AF908E414B9AB32526FBE15354"><enum>5003.</enum><header>Ending
subsidies for hardrock mining on public lands by imposing mining royalties and
claim fees</header>
<subsection id="idD783E21A4371423BA7E108B0A380A41B"><enum>(a)</enum><header>Royalty for
hardrock mining</header><text>The Revised Statutes are amended by inserting
after section 2352 (30 U.S.C. 76) the following:</text>
<quoted-block display-inline="no-display-inline" id="idA27CC3C4FF2B4A45ABEFDE57BA377111" style="OLC">
<section id="H20742F6625284428BB1C2CD8F1D47342"><enum>2353.</enum><header>Reservation of
royalty</header>
<subsection id="idC04CFF80AE314A52805FF59B2D857506"><enum>(a)</enum><header>Definition of
locatable mineral</header><text>In this section:</text>
<paragraph id="id14984F478A8241E68F3AF32C06B9AE55"><enum>(1)</enum><header>In
general</header><text>The term <term>locatable mineral</term> means any
mineral, the legal and beneficial title to which remains in the United States
and that is not subject to disposition under—</text>
<subparagraph id="HA48ECE92938A47B8A8A4022F7544F2B9"><enum>(A)</enum><text display-inline="yes-display-inline">the <act-name>Mineral Leasing
Act</act-name> (<external-xref>30 U.S.C. 181 et seq.</external-xref>);</text>
</subparagraph><subparagraph id="H57AF51461D5B4CF7B06635CC1AFF91C"><enum>(B)</enum><text display-inline="yes-display-inline">the Act of August 7, 1947 (commonly known
as the <quote><act-name>Mineral Leasing Act for Acquired
Lands</act-name></quote>) (<external-xref>30 U.S.C. 351 et
seq.</external-xref>);</text>
</subparagraph><subparagraph id="HB882F0CB361C4C63BD6EDD47DC05FA46"><enum>(C)</enum><text display-inline="yes-display-inline">the Act of July 31, 1947 (commonly known as
the <quote><act-name>Materials Act of 1947</act-name></quote>) (<external-xref legal-doc="usc" parsable-cite="usc/30/601">30 U.S.C. 601 et
seq.</external-xref>); or</text>
</subparagraph><subparagraph id="H0A46A0C3A8A642B2005D0011F066BB67"><enum>(D)</enum><text display-inline="yes-display-inline">the <act-name>Geothermal Steam Act of
1970</act-name> (<external-xref>30 U.S.C. 1001 et seq.</external-xref>).</text>
</subparagraph></paragraph><paragraph id="id5E2F587858F045D6AD912AEC66911D10"><enum>(2)</enum><header>Exclusions</header><text>The
term <term>locatable mineral</term> does not include any mineral that is
subject to a restriction against alienation imposed by the United States and
is—</text>
<subparagraph id="HC3D7987E12A0426493D75E1EC576136"><enum>(A)</enum><text>held in trust by
the United States for any Indian or Indian tribe (as defined in section 2 of
the <act-name>Indian Mineral Development Act of 1982</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/25/2101">25 U.S.C. 2101</external-xref>));
or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA7B3429B620842AE8CE33CC8AF5184B5"><enum>(B)</enum><text>owned by any
Indian or Indian tribe (s defined in section 2 of that Act).</text>
</subparagraph></paragraph></subsection><subsection id="H57C618A73C004947AF13A4C160A27636"><enum>(b)</enum><header>Royalty</header><text display-inline="yes-display-inline">Production of all locatable minerals from
any mining claim located under the general mining laws, or mineral concentrates
or products derived from locatable minerals from any such mining claim, as the
case may be, shall be subject to a royalty of 8 percent of the gross income
from mining.</text>
</subsection><subsection id="id2E71E0055F7D4A2692B044ABC07856E1"><enum>(c)</enum><header>Liability for
payment</header><text display-inline="yes-display-inline">The claim holder or
any operator to whom the claim holder has assigned the obligation to make
royalty payments under the claim, and any person who controls the claim holder
or operator, shall be liable for payment of royalties under this
section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H641322FDC1CF4EE496BE1ECAE4C03D93"><enum>(d)</enum><header>Deposit</header><text>Amounts
received by the United States as royalties under this section shall be
deposited into the general fund of the
Treasury.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idE9DBAB067ED04F508B4ECB578E87D903"><enum>(b)</enum><header>Hardrock mining
claim maintenance fee</header><text>Subtitle B of title X of the
<act-name>Omnibus Budget Reconciliation Act of 1993</act-name>
(<external-xref>30 U.S.C. 28f et seq.</external-xref>) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="idEDE8C196A4FB4E32A2AD3DA0ED682925" style="OLC">
<subchapter commented="no" id="idEE1BCDC3EF104887A47F6C0469239CB8" level-type="subsequent"><enum>B</enum><header>Hardrock mining claim maintenance
fee</header>
<section id="HA4517C884F7F44AF9C629152CCCE76A8"><enum>10101.</enum><header>Hardrock
mining claim maintenance fee</header>
<subsection id="H4E11C4CB9DB24DF6ACC4E435120092DA"><enum>(a)</enum><header>Fee</header>
<paragraph id="H07064DB07CFB4B9794DD3253C5230411"><enum>(1)</enum><header>In
general</header><text>Except as provided in section 2511(e)(2) of the
<act-name>Energy Policy Act of 1992</act-name> (<external-xref>30 U.S.C.
242(e)(2)</external-xref>), for each unpatented mining claim, mill, or tunnel
site on federally owned land, whether located before, on, or after enactment of
this Act, each claimant shall pay to the Secretary, on or before August 31 of
each year, a claim maintenance fee of $150 per claim to hold the unpatented
mining claim, mill, or tunnel site for the assessment year beginning at noon on
September 1.</text>
</paragraph><paragraph id="id681D54A736E3467293D67C45E2436D8E"><enum>(2)</enum><header>Relation to
other law</header><text>A claim maintenance fee described in paragraph (1)
shall be in lieu of—</text>
<subparagraph id="id3A9FC5048B2647E8A83D748486F21BE1"><enum>(A)</enum><text>the assessment
work requirement in section 2324 of the Revised Statutes (30 U.S.C. 28);
and</text>
</subparagraph><subparagraph id="id18DD58CB987D4EB8AB83CAE8343F0F20"><enum>(B)</enum><text>the related
filing requirements in subsections (a) and (c) of section 314 of the
<act-name>Federal Land Policy and Management Act of 1976</act-name>
(<external-xref legal-doc="usc" parsable-cite="usc/43/1744">43 U.S.C.
1744</external-xref>).</text>
</subparagraph></paragraph><paragraph id="H4A1CB051CA7F4217938FEFA8322F241D"><enum>(3)</enum><header>Waiver</header>
<subparagraph id="id851A82353D444AC5BADC23B4B4B68D7D"><enum>(A)</enum><header>In
general</header><text>The claim maintenance fee required under paragraph (1)
shall be waived for a claimant who certifies in writing to the Secretary that
on the date the payment was due, the claimant and all related parties—</text>
<clause id="H78727A8FA94A4CC882D970E7E2CD677B"><enum>(i)</enum><text>held not more than
10 mining claims, mill sites, or tunnel sites, or any combination of mining
claims, mill sites, or tunnel sites, on public land; and</text>
</clause><clause id="H9B13DEFCA7C047E1B3E8F1AAEDB8787"><enum>(ii)</enum><text>have performed
assessment work required under section 2324 of the Revised Statutes (30 U.S.C.
28) to maintain the mining claims held by the claimant and all related parties
for the assessment year ending on noon of September 1 of the calendar year in
which payment of the claim maintenance fee was due.</text>
</clause></subparagraph><subparagraph id="H0333C0728D054E0EB94BADFF1EBCAD5B"><enum>(B)</enum><header>Definition of
all related parties</header><text>In subparagraph (A), with the respect to any
claimant, the term <term>all related parties</term> means—</text>
<clause id="H9AB872232FF04C0E9C1BFE3028AC3100"><enum>(i)</enum><text>the spouse and
dependent children (as defined in section 152 of the Internal Revenue Code of
1986), of the claimant; or</text>
</clause><clause id="HB473358280974E039643A77FDBD5157"><enum>(ii)</enum><text>a
person affiliated with the claimant, including—</text>
<subclause id="HF2BD27A9F57D4DCAA765DB648F475500"><enum>(I)</enum><text>a person
controlled by, controlling, or under common control with the claimant;
or</text>
</subclause><subclause id="HA2950A563A1244D894CA44FFB47022C2"><enum>(II)</enum><text>a subsidiary or
parent company or corporation of the claimant.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="H4A8C0AC66D1546E68D394E4D5334C09F"><enum>(4)</enum><header>Adjustment</header>
<subparagraph id="id10F03111D4FA4DCF85368A284A70AFAB"><enum>(A)</enum><header>In
general</header><text>Not less than 5 years after the date of enactment of the
<short-title>Control Spending Now Act</short-title>, and
every 5 years thereafter, or more frequently if the Secretary determines an
adjustment to be reasonable, the Secretary shall adjust the claim maintenance
fee required under paragraph (1) to reflect changes for the 12-month period
ending the preceding November 30 in the Consumer Price Index for All Urban
Consumers published by the Bureau of Labor Statistics of the Department of
Labor.</text>
</subparagraph><subparagraph id="id763554A545D143319AA4F7B9B7945AD0"><enum>(B)</enum><header>Notification</header><text>Not
later than July 1 of any year in which an adjustment is made under subparagraph
(A), the Secretary shall provide claimants notice of the adjustment.</text>
</subparagraph><subparagraph id="idBBD4B5FB251F4BCCB4CD1CF969DD1BC6"><enum>(C)</enum><header>Application</header><text>A
fee adjustment under subparagraph (A) shall be effective beginning January 1 of
the calendar year following the calendar year in which the adjustment is
made.</text>
</subparagraph></paragraph></subsection><subsection id="H5D6968602CC046798BDEA971C6483DF6"><enum>(b)</enum><header>Location
fee</header><text>Notwithstanding any other provision of law, for each
unpatented mining claim, mill, or tunnel site located during the period
beginning on the date of enactment of the <short-title>Control Spending Now Act</short-title> and ending on
September 30, 2008, the locator shall, at the time the location notice is
recorded with the Bureau of Land Management, pay to the Secretary a location
fee, in addition to the fee required by subsection (a), of $50 per
claim.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idED5A0A20681942D9BFD1112C0534ED7F"><enum>(c)</enum><header display-inline="yes-display-inline">Deposit</header><text display-inline="yes-display-inline">Amounts received under subsection (a) or
(b) that are not otherwise allocated for the administration of the mining laws
by the Department of the Interior shall be deposited into the general fund of
the Treasury.</text>
</subsection><subsection id="H183DF79121954912B92D8C005C4345C7"><enum>(d)</enum><header>Co-Ownership</header><text>The
co-ownership provisions of section 2324 of the Revised Statutes (30 U.S.C. 28)
shall remain in effect except that the annual claim maintenance fee, if
applicable, shall replace applicable assessment requirements and
expenditures.</text>
</subsection><subsection id="H84FB06A83D884D64A9602403DC00BC5D"><enum>(e)</enum><header>Failure To
pay</header><text>Failure to pay the claim maintenance fee required by
subsection (a) shall conclusively constitute a forfeiture of the unpatented
mining claim, mill, or tunnel site by the claimant and the claim shall be
considered to be null and void by operation of law.</text>
</subsection><subsection id="HEE4C0F97980B442F89194DADFF01E7DD"><enum>(f)</enum><header>Relation to
other law</header><text>Nothing in this section changes or modifies the
requirements of subsections (b) or (c) of section 314(b) of the Federal Land
Policy and Management Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/43/1744">43 U.S.C.
1744</external-xref>).</text>
</subsection></section></subchapter><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="idFC4CB392C9224C09B53B8139956C5575"><enum>5004.</enum><header>Reducing
State subsidies for onshore oil, gas, coal, and mineral leases on public
lands</header><text display-inline="no-display-inline">Section 35 of the
Mineral Leasing Act (30 U.S.C. 191) is amended by striking subsection (b) and
inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id13B24E6DFD3D453D9525000BE59FB174" style="OLC">
<subsection id="idFAA3BD0E8CD545CB8CD438FD929F2EED"><enum>(b)</enum><header>Administrative
costs</header><text>Before making a payment to a State under subsection (a),
the Secretary of the Treasury shall deduct 2 percent of the payment amount to
reimburse the administrative costs incurred by the United States in managing
mineral leasing activities under this
Act.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="idC1AC08BBDE964159AD3910209352F8AA"><enum>5005.</enum><header>Reducing
subsidies for oil, gas, and geothermal energy production on public
lands</header>
<subsection id="idF354AF4EF04E437AA72668861416D889"><enum>(a)</enum><header>Removal of
prohibition on increasing fees for permits</header><text>Section 365 of the
Energy Policy Act of 2005 (42 U.S.C. 15924) is amended—</text>
<paragraph id="id789593DADF73441CABD57DD1B537504B"><enum>(1)</enum><text>by striking
subsection (i); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id15D1DB419E034E86ADB52A0AC82A0360"><enum>(2)</enum><text>by redesignating
subsection (j) as subsection (i).</text>
</paragraph></subsection><subsection id="id6288AB1592F84E50B3BC23C2C40CBC74"><enum>(b)</enum><header>Disposal of
moneys from sales, bonuses, rentals, and royalties</header><text>Section 20 of
the Geothermal Steam Act of 1970 (30 U.S.C. 1019) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="idB765C8B74C774E4CA4E82FC2E4D76162" style="OLC">
<section id="id9A1EEEAC47E645A2890EB1B68AA5172B"><enum>20.</enum><header>Disposal of
moneys from sales, bonuses, rentals, and royalties</header><text display-inline="no-display-inline">Subject
to section 35 of the Mineral Leasing Act (30 U.S.C. 191), all funds received
from the sales, bonuses, royalties, and rentals under this Act (including
payments referred to in section 6) shall be disposed of in the same manner as
funds received pursuant to section 6 of this Act or section 35 of the Mineral
Leasing Act (30 U.S.C. 191), as the case may
be.</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="id517148F5FBB248B69C534AB9A1B32660"><enum>5006.</enum><header>Reducing
aviation subsidies</header><text display-inline="no-display-inline">Section
44940 of title 49, United States Code, is amended—</text>
<paragraph id="IDd986392e8a3a435ca503d83d88287de9"><enum>(1)</enum><text>in subsection
(a)(1), by inserting <quote>in an amount equal to $5.00 per one-way
trip</quote> after <quote>uniform fee</quote>;</text>
</paragraph><paragraph id="ID7fc3763f8ad6415387955054b4ed906e"><enum>(2)</enum><text>by striking
subsection (c); and</text>
</paragraph><paragraph id="IDf670a54972d24fc89cf6234d31210931"><enum>(3)</enum><text>in subsection
(d)—</text>
<subparagraph id="ID75e0ecd4e74b403fae7955d2543c766a"><enum>(A)</enum><text>in paragraph (2),
by striking <quote>subsection (d)</quote> each place it appears and inserting
<quote>this subsection</quote>; and</text>
</subparagraph><subparagraph id="IDee1035b3beea468a933014fa15adb930"><enum>(B)</enum><text>in paragraph (3),
by striking <quote>in accordance with paragraph (1)</quote> and inserting
<quote>under subsection (a)(2)</quote>.</text>
</subparagraph></paragraph></section><section id="id249B2A9F9668410583A3E2319BA51F24"><enum>5007.</enum><header>Targeting
Medicare prescription drug assistance to those who need it most</header>
<subsection id="id82261FA3E69F49E1BC9D16B0F7F7958E"><enum>(a)</enum><header>In
general</header><text>Section 1860D–13(a) of the Social Security Act (42 U.S.C.
1395w–113(a)) is amended by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="idD11008A2BC78498EBFB4E7F8400C4251" style="OLC">
<paragraph id="id55473475E4C4438EBD8DBB9E4B8D63D5"><enum>(7)</enum><header>Reduction in
premium subsidy based on income</header><text>The provisions of subsection (i)
of section 1839 shall apply to the monthly beneficiary premium under this
subsection in the same manner as they apply to the monthly premium under such
section except that in so applying—</text>
<subparagraph id="id77C4EF40FAE44C7599588C6BC3C05D19"><enum>(A)</enum><text>paragraph (1) of
such subsection (i) to this subsection—</text>
<clause id="idC92394C925924DC79960BA4785E9173F"><enum>(i)</enum><text>the reference to
December 2006 is deemed a reference to December 2009; and</text>
</clause><clause id="id60CE5D38342B42B5B2E1D6E3415C7DA8"><enum>(ii)</enum><text>the reference to
the monthly premium is deemed a reference to the base beneficiary premium
(computed under paragraph (2) of this subsection);</text>
</clause></subparagraph><subparagraph id="idE1A6E90F58604D9B93CF9660A01C2668"><enum>(B)</enum><text>clause (i) of
paragraph (3)(A) of such subsection (i) to this subsection, the reference to 25
percentage points is deemed a reference to the beneficiary premium percentage
(as specified in paragraph (3) of this subsection);</text>
</subparagraph><subparagraph id="idC5A9A6BD997B437784DB2626FDBEA966"><enum>(C)</enum><text>clause (ii) of
paragraph (3)(A) of such subsection (i) to this subsection, the national
average monthly bid amount (computed under paragraph (4) of this subsection)
shall be substituted for the amount specified in such clause (ii) (relating to
the unsubsidized part B premium amount); and</text>
</subparagraph><subparagraph id="id6628F2DE684B4D67BDE07C03F30AA66E"><enum>(D)</enum><text>subparagraph (B)
of paragraph (3) of such subsection (i) to this subsection, the reference to
2009 shall be a reference to 2010, the reference to 2007 shall be a reference
to 2009, and the reference to 2008 shall be a reference to
2010.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id16FB5C987DF248D1A6E0551D9CA4424C"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="idDE5FFE8C26B046A3A8C43450724C5B4E"><enum>(1)</enum><header>Medicare</header><text>Section
1860D–13(a)(1) of the Social Security Act (42 U.S.C. 1395w–113(a)(1)) is
amended—</text>
<subparagraph id="id9D9E8E1398B74544AC37B9754B72A921"><enum>(A)</enum><text>by redesignating
subparagraph (F) as subparagraph (G);</text>
</subparagraph><subparagraph id="id1B48F7E7BD654FEBB8A06D0556434272"><enum>(B)</enum><text>in subparagraph
(G), as redesignated by subparagraph (A), by striking <quote>(D) and
(E)</quote> and inserting <quote>(D), (E), and (F)</quote>; and</text>
</subparagraph><subparagraph id="id164583E1D8B5493FA7E574DD781F11D6"><enum>(C)</enum><text>by inserting
after subparagraph (E) the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="id1B48E59C016C4B64B4F6D793B4F6F745" style="OLC">
<subparagraph id="id85583DE24B8E45BBAAEF336D7FB8E7B5"><enum>(F)</enum><header>Increase based
on income</header><text>The base beneficiary premium shall be increased
pursuant to paragraph
(7).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="idBF52D3E6D1CD4C5AB9D2B8A7BED66250"><enum>(2)</enum><header>Internal
Revenue Code</header><text>Section 6103(l)(20) of the Internal Revenue Code of
1986 (relating to disclosure of return information to carry out Medicare part B
premium subsidy adjustment) is amended—</text>
<subparagraph id="id04D99F6C27BD4961B049BFA6707C4941"><enum>(A)</enum><text>in the heading,
by striking <quote><header-in-text level="paragraph" style="OLC">part B premium
subsidy adjustment</header-in-text></quote> and inserting
<quote><header-in-text level="paragraph" style="OLC">parts B and D premium
subsidy adjustments</header-in-text></quote>;</text>
</subparagraph><subparagraph id="idAB751E6B3E6445F496B4AD5B4FFE5D5C"><enum>(B)</enum><text>in subparagraph
(A)—</text>
<clause id="id8A2164EB243145DD88E82E821A8D1C40"><enum>(i)</enum><text>in
the matter preceding clause (i), by inserting <quote>or 1860D–13(a)(7)</quote>
after <quote>1839(i)</quote>; and</text>
</clause><clause id="idC8F9C4159D2443EA92B0AE11FAF8E31E"><enum>(ii)</enum><text>in
clause (vii), by inserting after <quote>the amount of such adjustment</quote>
the following: <quote>or that the amount of the premium of the taxpayer under
such subsection (as applied under section 1860D–13(a)(7)) may be subject to
adjustment under such section 1860D–13(a)(7) and the amount of such
adjustment</quote>; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id5201E051F8004C268A907A159CC03D82"><enum>(C)</enum><text>in subparagraph
(B), by inserting <quote>or such section 1860D–13(a)(7)</quote> before the
period at the end.</text>
</subparagraph></paragraph></subsection></section><enum>VI</enum><header>Targeting
wasteful or unnecessary government spending</header>
<section id="id71A0F97A898C4D75B55FEC76886DD297"><enum>6001.</enum><header>Delaying a
lunar mission</header>
<subsection id="ID03da46f2491e4d979e74e78f7d38baea"><enum>(a)</enum><header>In
general</header><text>Except as provided in subsection (b)—</text>
<paragraph id="ID76397b65eb2c4dc2adb7def8d79a39c2"><enum>(1)</enum><text>no amounts
appropriated or otherwise made available for fiscal year 2010 (or for a fiscal
year before fiscal year 2010 that remain available for obligation) may be
obligated or expended, and no otherwise obligated amounts that remain available
for expenditure may be expended, to support a human lunar mission under the
National Aeronautics and Space Administration Constellation Program scheduled
to occur before the year 2025; and</text>
</paragraph><paragraph id="ID68c1293ea8fc43ab99424920e7428de1"><enum>(2)</enum><text>no additional
funds may be appropriated to support such a human lunar mission.</text>
</paragraph></subsection><subsection id="ID1b2e6fdd984448149d99cc0a7902f935"><enum>(b)</enum><header>Exceptions</header><text>An
amount otherwise covered by the prohibition under subsection (a) of not more
than $600,000,000 may be appropriated, obligated, or expended each fiscal year
solely for purposes in connection with research and technology development and
maintenance of the manufacturing and technology base with respect to the
mission described in subsection (a).</text>
</subsection></section><section id="id4E26D3FC426A4EFF8D6808C1D76A14A3"><enum>6002.</enum><header>Eliminating
the V–22 Osprey</header>
<subsection id="idFF83125749C74DDBB38FDEC7EC44A7C4"><enum>(a)</enum><header>Prohibition</header><text>Except
as provided in subsection (b), no amounts appropriated or otherwise made
available for fiscal year 2010 (or for a fiscal year before fiscal year 2010
that remain available for obligation) may be obligated or expended, and no
otherwise obligated amounts that remain available for expenditure may be
expended, for the V–22 or CV–22 Osprey tiltrotor aircraft program.</text>
</subsection><subsection id="id7191E78CD54A470F8058AE036064F77E"><enum>(b)</enum><header>Exception for
windup of program</header><text>Amounts covered by the prohibition in
subsection (a) that are available for the program described in that subsection
may be utilized solely for purposes in connection with the winding up of the
program.</text>
</subsection><subsection id="id7E822E8ABE52476D90DD18AC4600E916"><enum>(c)</enum><header>Repeal of
superseded authority</header><text>Section 127 of the John Warner National
Defense Authorization Act for Fiscal Year 2007 (Public Law 109–364; 120 Stat.
2109) is repealed.</text>
</subsection></section><section id="idA08047C7773C434881283835DE0838C4"><enum>6003.</enum><header>Cutting
C–17s</header>
<subsection id="id51404F3273E0472ABD0D690BC7FBC49E"><enum>(a)</enum><header>Prohibition</header><text>Except
as provided in subsection (b), no amounts appropriated or otherwise made
available for fiscal year 2010 (or for a fiscal year after 2006 and before
fiscal year 2010 that remain available for obligation) may be obligated or
expended, and no otherwise obligated amounts that remain available for
expenditure may be expended, for the C–17 Globemaster III aircraft
program.</text>
</subsection><subsection id="idF1CCE2D352014B43B9EB8A511B3386CA"><enum>(b)</enum><header>Exception for
windup of program</header><text>Amounts covered by the prohibition in
subsection (a) that are available for the program described in that subsection
may be utilized solely for purposes in connection with the winding up of the
program.</text>
</subsection></section><section id="id42E04F1510C14501B83866CDBE7E4F80"><enum>6004.</enum><header>Ending
spending for high-risk satellites</header>
<subsection id="idD52923BCC0B54EA8A49591552B3F5981"><enum>(a)</enum><header>Prohibition</header><text>Except
as provided in subsection (b), no amounts appropriated or otherwise made
available for fiscal year 2010 (or for a fiscal year before fiscal year 2010
that remain available for obligation) may be obligated or expended, and no
otherwise obligated amounts that remain available for expenditure may be
expended, to research, produce, deploy, or maintain a constellation of
nondemonstration satellites under the Space Tracking and Surveillance
System.</text>
</subsection><subsection id="id08098E736A8645ABA623F57032FF1A69"><enum>(b)</enum><header>Exception for
windup of system</header><text>Amounts covered by the prohibition in subsection
(a) that are available for the system described in that subsection may be
utilized solely for purposes in connection with the winding up of the
system.</text>
</subsection></section><section id="id52A1B3271EF748B78F5FFB531A0D8553"><enum>6005.</enum><header>Reducing cost
overruns and delays on major weapons systems</header>
<subsection id="id52F7A69B12EA42C0963728FECF625D9E"><enum>(a)</enum><header>In
general</header><text>Chapter 144 of title 10, United States Code, is amended
by inserting after section 2435 the following new section:</text>
<quoted-block display-inline="no-display-inline" id="id17D1079C57F340DDBBAC60AB974BFD17" style="USC">
<section id="id92F22119742F458283B5728E4565B268"><enum>2435a.</enum><header>High-risk
major defense acquisition programs: alternative acquisition strategies to meet
essential joint military requirements</header>
<subsection id="id959DEB508B934DD78A01C31B99FE45F9"><enum>(a)</enum><header>Designation
required</header><text>The Under Secretary of Defense for Acquisition,
Technology, and Logistics shall designate as high-risk for purposes of this
section a major defense acquisition program if—</text>
<paragraph id="idE369498E42F64EC7A6C77BAF4FA33AE0"><enum>(1)</enum><text>the critical
technologies of the program have not been demonstrated, or are not planned to
be demonstrated, in a realistic environment prior to making a production
decision; or</text>
</paragraph><paragraph id="idA4F127DDEA15490BB1431F611FE33480"><enum>(2)</enum><text>the program has
experienced development cost growth of 25 percent or more, or schedule delays
of 12 months or more, since receiving a certification pursuant to section 2366a
of this title.</text>
</paragraph></subsection><subsection id="idDACAAAE5C7734126B4223B94BEDB771F"><enum>(b)</enum><header>Alternative
acquisition strategy</header><paragraph commented="no" display-inline="yes-display-inline" id="id388D1DCAB2F84E00872ECD8F6FE153EF"><enum>(1)</enum><text>Not later than 60 days
after the date of the designation of a major defense acquisition program as
high-risk under subsection (a), the Under Secretary for Acquisition,
Technology, and Logistics shall—</text>
<subparagraph id="id65F15D9843324204AE0FE3ECCDE8C124" indent="up1"><enum>(A)</enum><text>review the joint military requirements
intended to be met by the program to determine whether or not all elements of
such requirements are essential; and</text>
</subparagraph><subparagraph id="id30963063986B490386EA8710DB6FEEA4" indent="up1"><enum>(B)</enum><text>develop an alternative acquisition
strategy that—</text>
<clause id="id77B005B1FD164A2EBD391A1B5E8AE000"><enum>(i)</enum><text>achieves capabilities in increments
to be delivered in less than five years each; and</text>
</clause><clause id="id5695E9087BE040E6AB6E3E625397B6B8"><enum>(ii)</enum><text>relies on mature technologies to
meet all essential elements of the joint military requirement for each
increment.</text>
</clause></subparagraph></paragraph><paragraph id="id17856DB869814F63983E94A00925200C" indent="up1"><enum>(2)</enum><text>The Under Secretary shall submit to
the Secretary of Defense and Congress each alternative acquisition strategy
developed under this subsection. In submitting such strategy to Congress, the
Under Secretary shall also submit a report on the results of the review
required by paragraph (1)(B) for purposes of such strategy.</text>
</paragraph></subsection><subsection id="idB86F9780A6D2474089DB0C8D5FFFC459"><enum>(c)</enum><header>Continuation of
program</header><paragraph commented="no" display-inline="yes-display-inline" id="id37822798435C461288B92F8D3DB18EF1"><enum>(1)</enum><text>Upon receipt of an
alternative acquisition strategy to meet joint military requirements under
subsection (b)(2), the Secretary of Defense shall determine whether or not to
terminate the major defense acquisition program otherwise intended to meet such
requirements so as to meet such requirements through the alternative
acquisition strategy.</text>
</paragraph><paragraph id="id6E920A52A94244B6B89FB66E61621246" indent="up1"><enum>(2)</enum><text>The Secretary shall submit to
Congress a report on each determination made under paragraph (1). The report on
a determination shall include a detailed justification of the
determination</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id957DE2E8EE40440AB75BFAD091E2324E"><enum>(b)</enum><header>Clerical
amendment</header><text>The table of sections at the beginning of chapter 144
of such title is amended by inserting after the item relating to section 2435
the following new item:</text>
<quoted-block id="id1d6d0648-90ec-4903-9274-60ede15acf20" style="USC">
<toc>
<toc-entry idref="id92F22119742F458283B5728E4565B268" level="section">2435a. High-risk major defense acquisition programs:
alternative acquisition strategies to meet essential joint military
requirements.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="id5F8CED7BCA8D459F8CF080F15C0663D5"><enum>6006.</enum><header>Reducing
spending on unneeded defense spare parts</header><text display-inline="no-display-inline">Of the amount appropriated for fiscal year
2010 to purchase excess secondary inventory for the Department of the Air
Force, the amount available for obligation and expenditure for that purpose in
fiscal year 2010 is hereby reduced by $50,000,000.</text>
</section><section id="id6EC1A58BFFFE4DE1A0E0FE35E9CE9B18"><enum>6007.</enum><header>Reducing
overpayments to defense contractors</header>
<subsection id="idD7A05AB32EB84C2FB458CBBC78A558D8"><enum>(a)</enum><header>Recovery</header><text display-inline="yes-display-inline">Notwithstanding any provision of subchapter
VI of chapter 35 of title 31, United States Code, an amount in the aggregate of
$50,000,000 shall be derived from amounts recovered by the Department of
Defense from erroneous payments to contractors pursuant to recovery audits and
activities carried out by the Department under section 3561 of such
title.</text>
</subsection><subsection id="idC811C285CA594E9EB0D38771807F4F7F"><enum>(b)</enum><header>Debt
reduction</header><text>The amount recovered under subsection (a) may be used
only for the reduction of the public debt of the United States.</text>
</subsection></section><section id="id45ACED77287C48EEB3F0504269AE1F1B"><enum>6008.</enum><header>Ending
wasteful intelligence spending</header>
<subsection commented="no" display-inline="no-display-inline" id="H1A95ACD0A7CD4D9AB1872E4163FC5865"><enum>(a)</enum><header display-inline="yes-display-inline">Vulnerability assessments of major
systems</header>
<paragraph commented="no" display-inline="no-display-inline" id="idCB4F68D83F104637819B3C3CBDB2266C"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Title V of the National Security Act of
1947 (50 U.S.C. 413 et seq.), as amended by section 305 of this Act, is further
amended by inserting after section 506B, as added by section 305(a), the
following new section:</text>
<quoted-block display-inline="no-display-inline" id="HD19BD8D47B6747558022AF6E945DE746" style="traditional">
<section commented="no" display-inline="no-display-inline" id="HB928107C30254BA9818E109FC83E9EFA" section-type="subsequent-section"><enum>506C.</enum><header>Vulnerability assessments of major
systems</header><subsection commented="no" display-inline="yes-display-inline" id="H8235825BD4C644D2B11E89DE8DAA312C"><enum>(a)</enum><header display-inline="yes-display-inline">Initial vulnerability assessments</header>
<paragraph commented="no" display-inline="no-display-inline" id="id21B11DEB60A24643A347A4567DAB8D1F"><enum>(1)</enum><header display-inline="yes-display-inline">Requirement for initial vulnerability
assessments</header><text display-inline="yes-display-inline">The Director of
National Intelligence shall conduct an initial vulnerability assessment for any
major system and its significant items of supply that is proposed for inclusion
in the National Intelligence Program prior to completion of Milestone B or an
equivalent acquisition decision. The initial vulnerability assessment of a
major system and its significant items of supply shall include use of an
analysis-based approach to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HC1DCE02C3EB9452C85008CA3A35C02F0"><enum>(A)</enum><text display-inline="yes-display-inline">identify vulnerabilities;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H696AF0AEE01840ECBE62CB15D285CED3"><enum>(B)</enum><text display-inline="yes-display-inline">define exploitation potential;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC60702F3C405445DA553E84855F9084D"><enum>(C)</enum><text display-inline="yes-display-inline">examine the system's potential
effectiveness;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6C29B4169C91498C9550A448F12DE8E9"><enum>(D)</enum><text display-inline="yes-display-inline">determine overall vulnerability; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5151E170C5B14D7200C651DAC151974B"><enum>(E)</enum><text display-inline="yes-display-inline">make recommendations for risk
reduction.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id005ED62E8CBC44EDA893B8B6A11DFCB8"><enum>(2)</enum><header display-inline="yes-display-inline">Limitation on obligation of
funds</header><text display-inline="yes-display-inline">For any major system
for which an initial vulnerability assessment is required under paragraph (1)
on the date of the enactment of the <short-title>Intelligence Authorization Act for Fiscal Year
2010</short-title>, such assessment shall be submitted to the congressional
intelligence committees within 180 days of such date of enactment. If such
assessment is not submitted to the congressional intelligence committees within
180 days of such date of enactment, funds appropriated for the acquisition of
the major system may not be obligated for a major contract related to the major
system. Such prohibition on the obligation of funds for the acquisition of the
major system shall cease to apply at the end of the 30-day period of a
continuous session of Congress that begins on the date on which Congress
receives the initial vulnerability assessment.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H9B50A07C351045EE98A088FC81AF8F02"><enum>(b)</enum><header display-inline="yes-display-inline">Subsequent vulnerability
assessments</header><paragraph commented="no" display-inline="yes-display-inline" id="HE41470892E01461788BF1B9062DEFC07"><enum>(1)</enum><text display-inline="yes-display-inline">The Director of National Intelligence
shall, periodically throughout the life span of a major system or if the
Director determines that a change in circumstances warrants the issuance of a
subsequent vulnerability assessment, conduct a subsequent vulnerability
assessment of each major system and its significant items of supply within the
National Intelligence Program.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id41FFE7972E2247368A03A5DA15FDA5B9" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">Upon the request of a congressional
intelligence committee, the Director of National Intelligence may conduct a
subsequent vulnerability assessment of a particular major system and its
significant items of supply within the National Intelligence Program.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF48B200A46034EEBB76BC4E3F92125A7" indent="up1"><enum>(3)</enum><text display-inline="yes-display-inline">Any subsequent vulnerability assessment of
a major system and its significant items of supply shall include use of an
analysis-based approach and, if applicable, a testing-based approach, to
monitor the exploitation potential of such system and reexamine the factors
described in subparagraphs (A) through (E) of subsection (a)(1).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H2E49DE92ED814A64B95CE8BB2C161675"><enum>(c)</enum><header display-inline="yes-display-inline">Major system management</header><text display-inline="yes-display-inline">The Director of National Intelligence shall
give due consideration to the vulnerability assessments prepared for a given
major system when developing and determining the National Intelligence Program
budget.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HC582A07E3FBA4B85A5E1D66B41AC5EE6"><enum>(d)</enum><header display-inline="yes-display-inline">Congressional oversight</header><paragraph commented="no" display-inline="yes-display-inline" id="H1409F5AD41A446CA846D05A0E2162117"><enum>(1)</enum><text display-inline="yes-display-inline">The Director of National Intelligence shall
provide to the congressional intelligence committees a copy of each
vulnerability assessment conducted under subsection (a) or (b) not later than
10 days after the date of the completion of such assessment.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9DD467BE7C314802B9CFA4F3EEF40C4" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">The Director of National Intelligence shall
provide the congressional intelligence committees with a proposed schedule for
subsequent vulnerability assessments of a major system under subsection (b)
when providing such committees with the initial vulnerability assessment under
subsection (a) of such system as required by paragraph (1).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HA001FCD04DDA4260BD763F8CBCA2DE69"><enum>(e)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">In this section:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H58EE66D64BEB4F209E6C4E5E801742E6"><enum>(1)</enum><text display-inline="yes-display-inline">The term <term>items of
supply</term>—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HC9A5B5D18D5A41669DE86C8944D22CDD"><enum>(A)</enum><text display-inline="yes-display-inline">means any individual part, component,
subassembly, assembly, or subsystem integral to a major system, and other
property which may be replaced during the service life of the major system,
including spare parts and replenishment parts; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA98FF1C1AA28430B9D7B104FBC9558D6"><enum>(B)</enum><text display-inline="yes-display-inline">does not include packaging or labeling
associated with shipment or identification of items.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6E0813A1DE5141CDB137C5F604388195"><enum>(2)</enum><text display-inline="yes-display-inline">The term <term>major system</term> has the
meaning given that term in section 506A(e).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H991DEFCC7C084500A8FD29494E8B0549"><enum>(3)</enum><text display-inline="yes-display-inline">The term <term>Milestone B</term> means a
decision to enter into system development and demonstration pursuant to
guidance prescribed by the Director of National Intelligence.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H11D7396EBB3E47D0B445563B79BF41AC"><enum>(4)</enum><text display-inline="yes-display-inline">The term <term>vulnerability
assessment</term> means the process of identifying and quantifying
vulnerabilities in a major system and its significant items of
supply.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9F5E00929F904C94B095E0C4C3F6D538"><enum>(2)</enum><header display-inline="yes-display-inline">Table of contents amendment</header><text display-inline="yes-display-inline">The table of contents in the first section
of the National Security Act of 1947, as amended by section 305 of this Act, is
further amended by inserting after the item relating to section 506B, as added
by section 305(b), the following:</text>
<quoted-block display-inline="no-display-inline" id="H889A67F3E4FA478300A44FA45267DA9" style="traditional">
<toc>
<toc-entry bold="off" idref="HB928107C30254BA9818E109FC83E9EFA" level="section">Sec. 506C.
Vulnerability assessments of major
systems.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID87b25d5c0fcc4b8c9ced18529c03dc79"><enum>(3)</enum><header display-inline="yes-display-inline">Definition of major system</header><text display-inline="yes-display-inline">Paragraph (3) of section 506A(e) of the
National Security Act of 1947 (50 U.S.C. 415a–1(e)) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="idD853B076A4464A6D9426B142EBE8EC61" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="ID24537d2e46614491a40c285f5f921cd1"><enum>(3)</enum><text display-inline="yes-display-inline">The term <term>major system</term> has the
meaning given that term in section 4 of the Office of Federal Procurement
Policy Act (41 U.S.C.
403).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HBBF926F32E8145609D318E2DF4B9748"><enum>(b)</enum><header display-inline="yes-display-inline">Reports on the acquisition of major
systems</header>
<paragraph commented="no" display-inline="no-display-inline" id="H7255D9E3DA6047B6AE49B54889C5398B"><enum>(1)</enum><header display-inline="yes-display-inline">Reports</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H9D0051ACECC847FE883227534D1CA000"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Title V of the National Security Act of
1947 (50 U.S.C. 413 et seq.), as amended by sections 305, 321, and 322 of this
Act, is further amended by inserting after section 506D, as added by section
322(a)(1), the following new section:</text>
<quoted-block display-inline="no-display-inline" id="HAE355A6C2C2643AF9439D4C3F2193CD8" style="traditional">
<section commented="no" display-inline="no-display-inline" id="H00A6E870BE344F02AFDB85E67ECF138" section-type="subsequent-section"><enum>506E.</enum><header>Reports on the acquisition of major
systems</header><subsection commented="no" display-inline="yes-display-inline" id="H6086CEE5903D47E1BE95A773B0553A7"><enum>(a)</enum><header display-inline="yes-display-inline">Annual reports required</header><paragraph commented="no" display-inline="yes-display-inline" id="H4A2D0849876A430A86DF556469F15BB6"><enum>(1)</enum><text display-inline="yes-display-inline">The Director of National Intelligence shall
submit to the congressional intelligence committees each year, at the same time
the budget of the President for the fiscal year beginning in such year is
submitted to Congress pursuant to section 1105 of title 31, United States Code,
a separate report on each acquisition of a major system by an element of the
intelligence community.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H72318917A91B460E92014DF506AACDB" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">Each report under this section shall be
known as a <quote>Report on the Acquisition of Major Systems</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H7EABE0D362A5427E95C7C46791CCFDB"><enum>(b)</enum><header display-inline="yes-display-inline">Elements</header><text display-inline="yes-display-inline">Each report under this section shall
include, for the acquisition of a major system, information on the
following:</text>
<paragraph commented="no" display-inline="no-display-inline" id="HDCFCEF2E80D245389D7F337F00628C74"><enum>(1)</enum><text display-inline="yes-display-inline">The current total acquisition cost for such
system, and the history of such cost from the date the system was first
included in a report under this section to the end of the fiscal year
immediately preceding the submission of the report under this section.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H23026A12D6B44FC1B532C468750542A1"><enum>(2)</enum><text display-inline="yes-display-inline">The current development schedule for the
system, including an estimate of annual development costs until development is
completed.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6EFAAEE64CE74100B212EF257FF9F102"><enum>(3)</enum><text display-inline="yes-display-inline">The planned procurement schedule for the
system, including the best estimate of the Director of National Intelligence of
the annual costs and units to be procured until procurement is
completed.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA96853526B584D248800D6D03B3BC4D"><enum>(4)</enum><text display-inline="yes-display-inline">A full life-cycle cost analysis for such
system.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDF58F8DCCB774A3EB0F6F9CDACBCB4EE"><enum>(5)</enum><text display-inline="yes-display-inline">The result of any significant test and
evaluation of such major system as of the date of the submission of such
report, or, if a significant test and evaluation has not been conducted, a
statement of the reasons therefor and the results of any other test and
evaluation that has been conducted of such system.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H456752FB262E44D8AC2FA6F8EAF2E820"><enum>(6)</enum><text display-inline="yes-display-inline">The reasons for any change in acquisition
cost, or schedule, for such system from the previous report under this section,
if applicable.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF6E652323B6541BAAFCA3B81F447AE7D"><enum>(7)</enum><text display-inline="yes-display-inline">The major contracts or subcontracts related
to the major system.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H79F4F1C6AF6741A69694F82DC6334816"><enum>(8)</enum><text display-inline="yes-display-inline">If there is any cost or schedule variance
under a contract referred to in paragraph (7) since the previous report under
this section, the reasons for such cost or schedule variance.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB88AF884D5DF4904887842F930C9746D"><enum>(c)</enum><header display-inline="yes-display-inline">Determination of increase in
costs</header><text display-inline="yes-display-inline">Any determination of a
percentage increase in the acquisition costs of a major system for which a
report is filed under this section shall be stated in terms of constant dollars
from the first fiscal year in which funds are appropriated for such
contract.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id54302953F74C4F97830B667A176DFB37"><enum>(d)</enum><header display-inline="yes-display-inline">Submission to the congressional armed
services committees</header><text display-inline="yes-display-inline">To the
extent that the report required by subsection (a) addresses an element of the
intelligence community within the Department of Defense, the Director of
National Intelligence shall submit that portion of the report, and any
associated material that is necessary to make that portion understandable, to
the Committee on Armed Services of the Senate and the Committee on Armed
Services of the House of Representatives.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H56B994C56E694A56B57F469134902685"><enum>(e)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">In this section:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H62AC133B049648A1AC4DB0C800267D6C"><enum>(1)</enum><text display-inline="yes-display-inline">The term <term>acquisition cost</term>,
with respect to a major system, means the amount equal to the total cost for
development and procurement of, and system-specific construction for, such
system.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCBD4C11F202445C9AC6ED0E1706F1E6"><enum>(2)</enum><text display-inline="yes-display-inline">The term <term>full life-cycle cost</term>,
with respect to the acquisition of a major system, means all costs of
development, procurement, construction, deployment, and operation and support
for such program, without regard to funding source or management control,
including costs of development and procurement required to support or utilize
such system.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H200469DB161C44FBBB05AE15BAFB1500"><enum>(3)</enum><text display-inline="yes-display-inline">The term <term>major contract</term>, with
respect to a major system acquisition, means each of the 6 largest prime,
associate, or government-furnished equipment contracts under the program that
is in excess of $40,000,000 and that is not a firm, fixed price
contract.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2AB3DCD256634EAD8CF22E4D3916497"><enum>(4)</enum><text display-inline="yes-display-inline">The term <term>major system</term> has the
meaning given that term in section 506A(e).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6A529FEBA07F433585DEED2CC68F65DE"><enum>(5)</enum><text display-inline="yes-display-inline">The term <term>significant test and
evaluation</term> means the functional or environmental testing of a major
system or of the subsystems that combine to create a major
system.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE3751E6953E0420296AB437FFB15005D"><enum>(B)</enum><header display-inline="yes-display-inline">Applicability date</header><text display-inline="yes-display-inline">The first report required to be submitted
under section 506E(a) of the National Security Act of 1947, as added by
subparagraph (A), shall be submitted with the budget for fiscal year 2011
submitted by the President under section 1105 of title 31, United States
Code.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0E65856D3E7847959528DA05F7C560E"><enum>(C)</enum><header display-inline="yes-display-inline">Table of contents amendment</header><text display-inline="yes-display-inline">The table of contents in the first section
of that Act is amended by inserting after the item relating to section 506D, as
added by section 322(a)(2), the following new item:</text>
<quoted-block display-inline="no-display-inline" id="HD36B0649DAB94957B083FD330084FC5D" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry bold="off" level="section">Sec. 506E. Reports on the
acquisition of major
systems.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID370229362efe4348b4c94f299a764c47"><enum>(2)</enum><header display-inline="yes-display-inline">Major defense acquisition
programs</header><text display-inline="yes-display-inline">Nothing in this
subsection, subsection (c), or an amendment made by such subsections, shall be
construed to exempt an acquisition program of the Department of Defense from
the requirements of chapter 144 of title 10, United States Code or Department
of Defense Directive 5000, to the extent that such requirements are otherwise
applicable.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id14E0677EACCB4671A9ED16A526461B0C"><enum>(c)</enum><header display-inline="yes-display-inline">Excessive cost growth of major
systems</header>
<paragraph commented="no" display-inline="no-display-inline" id="HBE00AE0283EC439185B05D173975E04E"><enum>(1)</enum><header display-inline="yes-display-inline">Notification</header><text display-inline="yes-display-inline">Title V of the National Security Act of
1947 (50 U.S.C. 413 et seq.), as amended by sections 305, 321, 322, and 323 of
this Act, is further amended by inserting after section 506E, as added by
section 323(a), the following new section:</text>
<quoted-block display-inline="no-display-inline" id="HF1FD09C10AC74EA3A3DBCE71D74D879D" style="traditional">
<section commented="no" display-inline="no-display-inline" id="HB891BFAF8CC34D10A1C6F9FAF1839716" section-type="subsequent-section"><enum>506F.</enum><header>Excessive cost growth of major systems</header><subsection commented="no" display-inline="yes-display-inline" id="HC00D54000DB84956A73B4D0586F15E88"><enum>(a)</enum><header display-inline="yes-display-inline">Cost increases of at least
<enum-in-header>25</enum-in-header> percent</header><paragraph commented="no" display-inline="yes-display-inline" id="H17C93CFEFD4F4F21AEA7B28779952951"><enum>(1)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H106D7B5C892A4A788988DF2EE1518BD1"><enum>(A)</enum><text display-inline="yes-display-inline">On a continuing basis, and separate from
the submission of any report on a major system required by section 506E of this
Act, the program manager shall determine if the acquisition cost of such major
system has increased by at least 25 percent as compared to the baseline cost of
such major system.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3FE16BCEA9AF4D1BB019ADF6283800E4" indent="up2"><enum>(B)</enum><text display-inline="yes-display-inline">Not later than 10 days after the date that
a program manager determines that an increase described in subparagraph (A) has
occurred, the program manager shall submit to the Director of National
Intelligence notification of such increase.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA9E95F148D0D4545853FAB103466B22" indent="up1"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H748F7C0F8A0E4CE59B18A116C216C0C2"><enum>(A)</enum><text display-inline="yes-display-inline">If, after receiving a notification
described in paragraph (1)(B), the Director of National Intelligence determines
that the acquisition cost of a major system has increased by at least 25
percent, the Director shall submit to the congressional intelligence committees
a written notification of such determination as described in subparagraph (B),
a description of the amount of the increase in the acquisition cost of such
major system, and a certification as described in subparagraph (C).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB22BB9B0F36B4122BAB03723F032D900" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">The notification required by subparagraph
(A) shall include—</text>
<clause commented="no" display-inline="no-display-inline" id="H2538B15470DA498B8F1F00EC393785EA"><enum>(i)</enum><text display-inline="yes-display-inline">an updated cost estimate;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H81B798C095C64926A9F1169D250770CC"><enum>(ii)</enum><text display-inline="yes-display-inline">the date on which the determination covered
by such notification was made;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H3408EB602F4C4B8F8832BAA1CD411717"><enum>(iii)</enum><text display-inline="yes-display-inline">contract performance assessment information
with respect to each significant contract or sub-contract related to such major
system, including the name of the contractor, the phase of the contract at the
time of the report, the percentage of work under the contract that has been
completed, any change in contract cost, the percentage by which the contract is
currently ahead or behind schedule, and a summary explanation of significant
occurrences, such as cost and schedule variances, and the effect of such
occurrences on future costs and schedules;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HFC822F6144C94BC280C08FF0E75C52CA"><enum>(iv)</enum><text display-inline="yes-display-inline">the prior estimate of the full life-cycle
cost for such major system, expressed in constant dollars and in current year
dollars;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H0E4E1997CADC481AA7878EEF605F9588"><enum>(v)</enum><text display-inline="yes-display-inline">the current estimated full life-cycle cost
of such major system, expressed in constant dollars and current year
dollars;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H3D96C1B9DA95486285373F00368FABBB"><enum>(vi)</enum><text display-inline="yes-display-inline">a
statement of the reasons for any increases in the full life-cycle cost of such
major system;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H9609D1AEBB3848D78C0047F9004613C8"><enum>(vii)</enum><text display-inline="yes-display-inline">the current change and the total change, in
dollars and expressed as a percentage, in the full life-cycle cost applicable
to such major system, stated both in constant dollars and current year
dollars;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HEB46FF1DFD7143449EE26BEFBBCFAAB1"><enum>(viii)</enum><text display-inline="yes-display-inline">the completion status of such major system
expressed as the percentage—</text>
<subclause commented="no" display-inline="no-display-inline" id="HC9A49483354644E6BD138410B791D83E"><enum>(I)</enum><text display-inline="yes-display-inline">of the total number of years for which
funds have been appropriated for such major system compared to the number of
years for which it is planned that such funds will be appropriated; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HEA2578AC666A4B08B4E29B68EAF18DDE"><enum>(II)</enum><text display-inline="yes-display-inline">of the amount of funds that have been
appropriated for such major system compared to the total amount of such funds
which it is planned will be appropriated;</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="HCDA0D31E3FB14507982591EBBCB1E742"><enum>(ix)</enum><text display-inline="yes-display-inline">the action taken and proposed to be taken
to control future cost growth of such major system; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H3DAD6005317E44568365E2CFC100283B"><enum>(x)</enum><text display-inline="yes-display-inline">any changes made in the performance or
schedule of such major system and the extent to which such changes have
contributed to the increase in full life-cycle costs of such major
system.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6286244D7CD84E68892D951F2711B46C" indent="up1"><enum>(C)</enum><text display-inline="yes-display-inline">The certification described in this
subparagraph is a written certification made by the Director and submitted to
the congressional intelligence committees that—</text>
<clause commented="no" display-inline="no-display-inline" id="H1ACE3D9E159D41A6A08F9C627803072C"><enum>(i)</enum><text display-inline="yes-display-inline">the acquisition of such major system is
essential to the national security;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H5503FFD68A394BD7A1C178F6588EFE92"><enum>(ii)</enum><text display-inline="yes-display-inline">there are no alternatives to such major
system that will provide equal or greater intelligence capability at equal or
lesser cost to completion;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H319A27154FB34EF9B75CE210BC00CA71"><enum>(iii)</enum><text display-inline="yes-display-inline">the new estimates of the full life-cycle
cost for such major system are reasonable; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H6888F4B370AA4C24B46498778995BB00"><enum>(iv)</enum><text display-inline="yes-display-inline">the management structure for the
acquisition of such major system is adequate to manage and control full
life-cycle cost of such major system.</text>
</clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HE0C2D76CE4A9429CB450002485A92C6E"><enum>(b)</enum><header display-inline="yes-display-inline">Cost increases of at least
<enum-in-header>50</enum-in-header> percent</header><paragraph commented="no" display-inline="yes-display-inline" id="HFD1537E56BDC4CEFA2D09BE1B928DAE4"><enum>(1)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HF9122AA89CBC497BB35F51A00005A336"><enum>(A)</enum><text display-inline="yes-display-inline">On a continuing basis, and separate from
the submission of any report on a major system required by section 506E of this
Act, the program manager shall determine if the acquisition cost of such major
system has increased by at least 50 percent as compared to the baseline cost of
such major system.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7C943C08399D4C56A728D7D4D2A745CD" indent="up2"><enum>(B)</enum><text display-inline="yes-display-inline">Not later than 10 days after the date that
a program manager determines that an increase described in subparagraph (A) has
occurred, the program manager shall submit to the Director of National
Intelligence notification of such increase.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H61E8C41E0A2D4D9EA581D6408FB7FAB7" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">If, after receiving a notification
described in paragraph (1)(B), the Director of National Intelligence determines
that the acquisition cost of a major system has increased by at least 50
percent as compared to the baseline cost of such major system, the Director
shall submit to the congressional intelligence committees a written
certification stating that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H3C31E982115040FAB400FFFA2010CFB1"><enum>(A)</enum><text display-inline="yes-display-inline">the acquisition of such major system is
essential to the national security;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H14312B10725E4FC5B2719F2F51737297"><enum>(B)</enum><text display-inline="yes-display-inline">there are no alternatives to such major
system that will provide equal or greater intelligence capability at equal or
lesser cost to completion;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H45CD8C63A94E4C44875C60A2CA62F33"><enum>(C)</enum><text display-inline="yes-display-inline">the new estimates of the full life-cycle
cost for such major system are reasonable; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9C0F6BA137164EA9A221639B0274DC43"><enum>(D)</enum><text display-inline="yes-display-inline">the management structure for the
acquisition of such major system is adequate to manage and control the full
life-cycle cost of such major system.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0A4D16DAEB2543D486E27D1129F7D3E9" indent="up1"><enum>(3)</enum><text display-inline="yes-display-inline">In addition to the certification required
by paragraph (2), the Director of National Intelligence shall submit to the
congressional intelligence committees an updated notification, with current
accompanying information, as required by subsection (a)(2).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H21C5D64C68164021AE95E36D98BF1287"><enum>(c)</enum><header display-inline="yes-display-inline">Prohibition on obligation of
funds</header><paragraph commented="no" display-inline="yes-display-inline" id="H344A90B638FC4A879126C0F13694B9AE"><enum>(1)</enum><text display-inline="yes-display-inline">If a written certification required under
subsection (a)(2)(A) is not submitted to the congressional intelligence
committees within 90 days of the notification made under subsection (a)(1)(B),
funds appropriated for the acquisition of a major system may not be obligated
for a major contract under the program. Such prohibition on the obligation of
funds shall cease to apply at the end of the 30-day period of a continuous
session of Congress that begins on the date on which Congress receives the
notification required under subsection (a)(2).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDDD47DDE6D6342368197A619E65D357B" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">If a written certification required under
subsection (b)(2) is not submitted to the congressional intelligence committees
within 90 days of the notification made under subsection (b)(1)(B), funds
appropriated for the acquisition of a major system may not be obligated for a
major contract under the program. Such prohibition on the obligation of funds
for the acquisition of a major system shall cease to apply at the end of the
30-day period of a continuous session of Congress that begins on the date on
which Congress receives the notification required under subsection
(b)(3).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id7828FB359A614FC4A464A77380914B63"><enum>(d)</enum><header display-inline="yes-display-inline">Initial certifications</header><text display-inline="yes-display-inline">Notwithstanding subsection (c), for any
major system for which a written certification is required under either
subsection (a)(2) or (b)(2) on the date of the enactment of the
<short-title>Intelligence Authorization Act for Fiscal
Year 2010</short-title>, such written certification shall be submitted to the
congressional intelligence committees within 180 days of such date of
enactment. If such written certification is not submitted to the congressional
intelligence committees within 180 days of such date of enactment, funds
appropriated for the acquisition of a major system may not be obligated for a
major contract under the program. Such prohibition on the obligation of funds
for the acquisition of a major system shall cease to apply at the end of the
30-day period of a continuous session of Congress that begins on the date on
which Congress receives the notification required under subsection (a)(2) or
(b)(3).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idFF684D652A934A9F939BBA0A07E6A100"><enum>(e)</enum><header display-inline="yes-display-inline">Submission to the congressional armed
services committees</header><text display-inline="yes-display-inline">To the
extent that a submission required to be made to the congressional intelligence
committees under this section addresses an element of the intelligence
community within the Department of Defense, the Director of National
Intelligence shall submit that portion of the submission, and any associated
material that is necessary to make that portion understandable, to the
Committee on Armed Services of the Senate and the Committee on Armed Services
of the House of Representatives.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HBD038C18224A49B0A98DDF7DD19C60D9"><enum>(f)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">In this section:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H2115744284474364B1DE87D91800EB49"><enum>(1)</enum><text display-inline="yes-display-inline">The term <term>acquisition cost</term> has
the meaning given that term in section 506E(d).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9ECAE1A5992F49D49E80DA4998F584EC"><enum>(2)</enum><text display-inline="yes-display-inline">The term <term>baseline cost</term>, with
respect to a major system, means the projected acquisition cost of such system
that is approved by the Director of National Intelligence at Milestone B or an
equivalent acquisition decision for the development, procurement, and
construction of such system. The baseline cost may be in the form of an
independent cost estimate.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDc44b319b66f9476d89d10b41a5ec7637"><enum>(3)</enum><text display-inline="yes-display-inline">The term <term>cost estimate</term>—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id355F251C183847AA8E3C9C2D47B1D27B"><enum>(A)</enum><text display-inline="yes-display-inline">means an assessment and quantification of
all costs and risks associated with the acquisition of a major system based
upon reasonably available information at the time a written certification is
required under either subsection (a)(2) or (b)(2); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idBB6345E67BE147798580190E28BFE89D"><enum>(B)</enum><text display-inline="yes-display-inline">does not mean an <term>independent cost
estimate</term>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H489D40732101429385C51174883E7CCD"><enum>(4)</enum><text display-inline="yes-display-inline">The term <term>full life-cycle cost</term>
has the meaning given that term in section 506E(d).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA946EA87793044CAB40035BF15441CAB"><enum>(5)</enum><text display-inline="yes-display-inline">The term <term>independent cost
estimate</term> has the meaning given that term in section 506A(e).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1AAB07C909BF4F9A863447E400F18E3E"><enum>(6)</enum><text display-inline="yes-display-inline">The term <term>major system</term> has the
meaning given that term in section 506A(e).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDBA17E88FE934A30BAD0818FCCC7A1BB"><enum>(7)</enum><text display-inline="yes-display-inline">The term <term>Milestone B</term> means a
decision to enter into system development and demonstration pursuant to
guidance prescribed by the Director of National Intelligence.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA0025904C342402EABFDF6F709403B42"><enum>(8)</enum><text display-inline="yes-display-inline">The term <term>program manager</term>, with
respect to a major system, means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H8096CBC5BFE748AAB7BB646CF9D3BF59"><enum>(A)</enum><text display-inline="yes-display-inline">the head of the element of the intelligence
community which is responsible for the budget, cost, schedule, and performance
of the major system; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1ED3ACE905F24B89B8915200766E1C06"><enum>(B)</enum><text display-inline="yes-display-inline">in the case of a major system within the
Office of the Director of National Intelligence, the deputy who is responsible
for the budget, cost, schedule, and performance of the major
system.</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H84561D3E725F46DCBCEA11CB345D335"><enum>(2)</enum><header display-inline="yes-display-inline">Table of contents amendment</header><text display-inline="yes-display-inline">The table of contents in the first section
of that Act, as amended by sections 305, 321, 322, and 323 of this Act, is
further amended by inserting after the items relating to section 506E, as added
by section 323(a)(3), the following new item:</text>
<quoted-block display-inline="no-display-inline" id="H40C34B70688147F2A1DCD0AA62C4BF66" style="traditional">
<toc>
<toc-entry bold="off" idref="HB891BFAF8CC34D10A1C6F9FAF1839716" level="section">Sec. 506F. Excessive
cost growth of major
systems.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H29E4909A498D42B4B825F8219FC49FBD"><enum>(d)</enum><header display-inline="yes-display-inline">Future budget projections</header>
<paragraph commented="no" display-inline="no-display-inline" id="id65F40971B8E14355AEA6CE1FCC95A3C6"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Title V of the National Security Act of
1947 (50 U.S.C. 413 et seq.), as amended by sections 305, 321, 322, 323, and
324 of this Act, is further amended by inserting after section 506F, as added
by section 324(a), the following new section:</text>
<quoted-block display-inline="no-display-inline" id="HC83B71002BDC48478C939F10A9B7DDBB" style="traditional">
<section commented="no" display-inline="no-display-inline" id="H2C95A7EE234F428693C4765C05AEC027" section-type="subsequent-section"><enum>506G.</enum><header>Future budget projections</header><subsection commented="no" display-inline="yes-display-inline" id="HC9996D792B9E4BFC8900A59448D5DA3D"><enum>(a)</enum><header display-inline="yes-display-inline">Future Year Intelligence
Plans</header><paragraph commented="no" display-inline="yes-display-inline" id="H12DFF24CDB8E4F94AE00A0E909FBAC1F"><enum>(1)</enum><text display-inline="yes-display-inline">The Director of National Intelligence, with
the concurrence of the Office of Management and Budget, shall provide to the
congressional intelligence committees a Future Year Intelligence Plan, as
described in paragraph (2), for—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H60F482E763F1487186E22DD39345B4B5" indent="up1"><enum>(A)</enum><text display-inline="yes-display-inline">each expenditure center in the National
Intelligence Program; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFD3D62EDC0074293A3772400333604EC" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">each major system in the National
Intelligence Program.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6B5DE70AA79C4AD5BE111CD75C1D62FD" indent="up1"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HCE08E477E2314FFB9F34A64EDEBB2DC0"><enum>(A)</enum><text display-inline="yes-display-inline">A Future Year Intelligence Plan submitted
under this subsection shall include the year-by-year proposed funding for each
center or system referred to in subparagraph (A) or (B) of paragraph (1), for
the budget year for which the Plan is submitted and not less than the 4
subsequent budget years.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1F402AA10DD44ADDB18E16B169AA507F" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">A
Future Year Intelligence Plan submitted under subparagraph (B) of paragraph (1)
for a major system shall include—</text>
<clause commented="no" display-inline="no-display-inline" id="H496DE7E7030A4FE38100E4460023BB3B"><enum>(i)</enum><text display-inline="yes-display-inline">the estimated total life-cycle cost of such
major system; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H684410F051564C23B6E85C2B572FF73E"><enum>(ii)</enum><text display-inline="yes-display-inline">any major acquisition or programmatic
milestones for such major system.</text>
</clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HF100583A99754B698F88E45BDC3B5C67"><enum>(b)</enum><header display-inline="yes-display-inline">Long-term Budget Projections</header><paragraph commented="no" display-inline="yes-display-inline" id="HF2D50172CAD5429EB8BD768842943CC4"><enum>(1)</enum><text display-inline="yes-display-inline">The Director of National Intelligence, with
the concurrence of the Director of the Office of Management and Budget, shall
provide to the congressional intelligence committees a Long-term Budget
Projection for each element of the National Intelligence Program acquiring a
major system that includes the budget for such element for the 5-year period
following the last budget year for which proposed funding was submitted under
subsection (a)(2)(A).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7935389DCDD94605AC999DC5C82BCE3" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">A Long-term Budget Projection submitted
under paragraph (1) shall include projections for the appropriate element of
the intelligence community for—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H74492D3B480E45D8B29C433E948854A5"><enum>(A)</enum><text display-inline="yes-display-inline">pay and benefits of officers and employees
of such element;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H204DD06D5F3B4070A8264BD406C1A31E"><enum>(B)</enum><text display-inline="yes-display-inline">other operating and support costs and minor
acquisitions of such element;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H68DB97E6D91D4457945B6FB19F571BE8"><enum>(C)</enum><text display-inline="yes-display-inline">research and technology required by such
element;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H36AD6EC00FC74A33B887E9FB781412A8"><enum>(D)</enum><text display-inline="yes-display-inline">current and planned major system
acquisitions for such element; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HDD0580BE598A4E1CBA187C387E1E6775"><enum>(E)</enum><text display-inline="yes-display-inline">any unplanned but necessary next-generation
major system acquisitions for such element.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H5C2178C1F2294060BEE265791F2FB500"><enum>(c)</enum><header display-inline="yes-display-inline">Submission to Congress</header><text display-inline="yes-display-inline">Each Future Year Intelligence Plan or
Long-term Budget Projection required under subsection (a) or (b) shall be
submitted to Congress along with the budget for a fiscal year submitted to
Congress by the President pursuant to section 1105 of title 31, United States
Code.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HFA78236BF85C49BD9B95F5862DB5DB7"><enum>(d)</enum><header display-inline="yes-display-inline">Content of Long-Term Budget
Projections</header><paragraph commented="no" display-inline="yes-display-inline" id="HE6986FD96A6D402E9E11942B3EB870EF"><enum>(1)</enum><text display-inline="yes-display-inline">Each Long-term Budget Projection submitted
under subsection (b) shall include—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H1719E887566542F286CAF939E407B489" indent="up1"><enum>(A)</enum><text display-inline="yes-display-inline">a budget projection based on constrained
budgets, effective cost and schedule execution of current or planned major
system acquisitions, and modest or no cost-growth for undefined,
next-generation systems; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HEB83C29921D6440086F8711C516C4100" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">a budget projection based on constrained
budgets, modest cost increases in executing current and planned programs, and
more costly next-generation systems.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3B776A79CC074B868284869400C6ED52" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">Each budget projection required by
paragraph (1) shall include a description of whether, and to what extent, the
total projection for each year exceeds the level that would result from
applying the most recent Office of Management and Budget inflation estimate to
the budget of that element of the intelligence community.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB4DEDF0B8555422B9ED40008E682200"><enum>(e)</enum><header display-inline="yes-display-inline">New major system affordability
report</header><paragraph commented="no" display-inline="yes-display-inline" id="HBB634A309FC34B09B8AEAA759332AC"><enum>(1)</enum><text display-inline="yes-display-inline">Beginning on February 1, 2010, not later
than 30 days prior to the date that an element of the intelligence community
may proceed to Milestone A, Milestone B, or an analogous stage of system
development, in the acquisition of a major system in the National Intelligence
Program, the Director of National Intelligence, with the concurrence of the
Director of the Office of Management and Budget, shall provide a report on such
major system to the congressional intelligence committees.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1D7CF72F29BC4BADAED212F53BC403D" indent="up1"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HFC0C97A97EDC4A79823EC1F378D4AEAB"><enum>(A)</enum><text display-inline="yes-display-inline">A report submitted under paragraph (1)
shall include an assessment of whether, and to what extent, such acquisition,
if developed, procured, and operated, is projected to cause an increase in the
most recent Future Year Intelligence Plan and Long-term Budget Projection for
that element of the intelligence community.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H608CB567F4974A65BF296D42B6108990" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">If an increase is projected under
subparagraph (A), the report required by this subsection shall include a
specific finding, and the reasons therefor, by the Director of National
Intelligence and the Director of the Office of Management and Budget that such
increase is necessary for national security.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H625ADB1A50A44D7AB1F31164FEAE4797"><enum>(f)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">In this section:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H3017160679334488B5D7992424FCC81"><enum>(1)</enum><text display-inline="yes-display-inline">The term <term>major system</term> has the
meaning given that term in section 506A(e).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC318DD7C49424F9EAC5F675524329D50"><enum>(2)</enum><text display-inline="yes-display-inline">The term <term>Milestone A</term> means a
decision to enter into concept refinement and technology maturity demonstration
pursuant to guidance issued by the Director of National Intelligence.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1591149123044764A9008E92E383EC39"><enum>(3)</enum><text display-inline="yes-display-inline">The term <term>Milestone B</term> means a
decision to enter into system development, integration, and demonstration
pursuant to guidance prescribed by the Director of National
Intelligence.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id77BA4096DDB548F997C99F082A3D04A1"><enum>(2)</enum><header display-inline="yes-display-inline">Applicability date</header><text display-inline="yes-display-inline">The first Future Year Intelligence Plan or
Long-term Budget Projection required to be submitted under subsection (a) or
(b) of section 506G of the National Security Act of 1947, as added by paragraph
(1), shall be submitted with the budget for fiscal year 2011 submitted by the
President under section 1105 of title 31, United States Code.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id7C53A9CFE2BC41058BFE46679E099712"><enum>(3)</enum><header display-inline="yes-display-inline">Table of contents amendment</header><text display-inline="yes-display-inline">The table of contents in the first section
of that Act, as amended by sections 305, 321, 322, 323, and 324 of this Act, is
further amended by inserting after the items relating to section 506F, as added
by section 324(b), the following new item:</text>
<quoted-block display-inline="no-display-inline" id="HD94C9EF64C7F4368A870004FD5C983BC" style="OLC">
<toc>
<toc-entry bold="off" level="section">Sec. 506G. Future budget
projections.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id67426B30B2A948A694E08C322AACD8AC"><enum>(e)</enum><header display-inline="yes-display-inline">Correcting long-Standing material
weaknesses</header>
<paragraph commented="no" display-inline="no-display-inline" id="id7E3E3FD59E314CA6A05A57FC776E873E"><enum>(1)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">In this subsection:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID272089da348e4eab9bf9184e3ac84446"><enum>(A)</enum><header display-inline="yes-display-inline">Covered element of the intelligence
community</header><text display-inline="yes-display-inline">The term
<term>covered element of the intelligence community</term> means—</text>
<clause commented="no" display-inline="no-display-inline" id="ID08a78965a5b94096813e48c476976e5e"><enum>(i)</enum><text display-inline="yes-display-inline">the Central Intelligence Agency;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID82438227a3b14267b406bb0506441e2b"><enum>(ii)</enum><text display-inline="yes-display-inline">the Defense Intelligence Agency;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID5f9d792a80ea4009b4bbc4fd986d74f4"><enum>(iii)</enum><text display-inline="yes-display-inline">the National Geospatial-Intelligence
Agency;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID5174e6af0ea14ed29b73a9f546110ed1"><enum>(iv)</enum><text display-inline="yes-display-inline">the National Reconnaissance Office;
or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID7947a9ada4b642bca2185b245ed618a7"><enum>(v)</enum><text display-inline="yes-display-inline">the National Security Agency.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID6bc1008597c4415b810ccd9fdc969330"><enum>(B)</enum><header display-inline="yes-display-inline">Independent auditor</header><text display-inline="yes-display-inline">The term <term>independent auditor</term>
means an individual who—</text>
<clause commented="no" display-inline="no-display-inline" id="IDef1d21b2bc5f48c9937ce9bce4dda78c"><enum>(i)</enum><subclause commented="no" display-inline="yes-display-inline" id="id5D63300702F742C29859C23EB77511AD"><enum>(I)</enum><text display-inline="yes-display-inline">is a Federal, State, or local government
auditor who meets the independence standards included in generally accepted
government auditing standards; or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idBE7D246E24644BB2B04AC53CA0C096A4" indent="up1"><enum>(II)</enum><text display-inline="yes-display-inline">is a public accountant who meets such
independence standards; and</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="ID5e61ede6444548a8935e45cfe149f748"><enum>(ii)</enum><text display-inline="yes-display-inline">is designated as an auditor by the Director
of National Intelligence or the head of a covered element of the intelligence
community, as appropriate.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDde11aa8c7c58405caf683187e8222855"><enum>(C)</enum><header display-inline="yes-display-inline">Long-standing, correctable material
weakness</header><text display-inline="yes-display-inline">The term
<term>long-standing, correctable material weakness</term> means a material
weakness—</text>
<clause commented="no" display-inline="no-display-inline" id="IDfbedad872a1d41968c32f47ed4c62805"><enum>(i)</enum><text display-inline="yes-display-inline">that was first reported in the annual
financial report of a covered element of the intelligence community for a
fiscal year prior to fiscal year 2007; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID34f2d5c4ad8743b7811bae87cb3d6801"><enum>(ii)</enum><text display-inline="yes-display-inline">the correction of which is not
substantially dependent on a business system that will not be implemented prior
to the end of fiscal year 2010.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDa717e76772044e54aebe2b9f6c0becdc"><enum>(D)</enum><header display-inline="yes-display-inline">Material weakness</header><text display-inline="yes-display-inline">The term <term>material weakness</term> has
the meaning given that term under the Office of Management and Budget Circular
A–123, entitled <quote>Management's Responsibility for Internal
Control,</quote> revised December 21, 2004.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDbc893fbeccea4054862190a34b432ff0"><enum>(E)</enum><header display-inline="yes-display-inline">Covered program</header><text display-inline="yes-display-inline">The term <term>covered program</term>
means—</text>
<clause commented="no" display-inline="no-display-inline" id="idA599906DE03A4CD8A6AA2C8A72B8903E"><enum>(i)</enum><text display-inline="yes-display-inline">the Central Intelligence Agency
Program;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID29dcb36f10c7485d8af706d92b8c2dc0"><enum>(ii)</enum><text display-inline="yes-display-inline">the Consolidated Cryptologic
Program;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDd88fef1af9934a4e9263a7b8d9a36bc9"><enum>(iii)</enum><text display-inline="yes-display-inline">the General Defense Intelligence
Program;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID876132fcc29a49d7b0cdca6edf4a66b8"><enum>(iv)</enum><text display-inline="yes-display-inline">the National Geospatial-Intelligence
Program; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDd06ced02a7174492937976df6f567d40"><enum>(v)</enum><text display-inline="yes-display-inline">the National Reconnaissance Program.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDe3cdc96599614562a95c87ea823a7856"><enum>(F)</enum><header display-inline="yes-display-inline">Senior intelligence management
official</header><text display-inline="yes-display-inline">The term
<term>senior intelligence management official</term> means an official within a
covered element of the intelligence community who holds a position—</text>
<clause commented="no" display-inline="no-display-inline" id="ID551d20ccdc6849c29d8922af58c96667"><enum>(i)</enum><subclause commented="no" display-inline="yes-display-inline" id="id67FFE4169E8A48A38682CC225E769703"><enum>(I)</enum><text display-inline="yes-display-inline">for which the level of the duties and
responsibilities and the rate of pay are comparable to that of a
position—</text>
<item commented="no" display-inline="no-display-inline" id="ID014b2596e9134db0bb49c847101faa80" indent="up1"><enum>(aa)</enum><text display-inline="yes-display-inline">above grade 15 of the General Schedule (as
described in section 5332 of title 5, United States Code); or</text>
</item><item commented="no" display-inline="no-display-inline" id="ID3f0172f3b89846678fdf8da19fc44f7e" indent="up1"><enum>(bb)</enum><text display-inline="yes-display-inline">at or above level IV of the Executive Level
(as described in section 5315 of title 5, United States Code); or</text>
</item></subclause><subclause commented="no" display-inline="no-display-inline" id="id772F1F9742204AC19DABAC415F8A19D2" indent="up1"><enum>(II)</enum><text display-inline="yes-display-inline">as the head of a covered element of the
intelligence community; and</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="IDdb97e8a99c9c47eabf9095e57a30215e"><enum>(ii)</enum><text display-inline="yes-display-inline">which is compensated for employment with
funds appropriated pursuant to an authorization of appropriations in this
Act.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDe6fbaa2a84774a60b7b38f06030529ef"><enum>(2)</enum><header display-inline="yes-display-inline">Identification of senior intelligence
management officials</header>
<subparagraph commented="no" display-inline="no-display-inline" id="idC7AA3887DC164EDC969F80341D3E6939"><enum>(A)</enum><header display-inline="yes-display-inline">Requirement to identify</header><text display-inline="yes-display-inline">Not later than 30 days after the date of
the enactment of this Act, the head of a covered element of the intelligence
community shall identify each senior intelligence management official of such
element who is responsible for correcting a long-standing, correctable material
weakness.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idD3D34BDD6F4B4DC4A5DF57B4E36DD501"><enum>(B)</enum><header display-inline="yes-display-inline">Head of a covered element of the
intelligence community</header><text display-inline="yes-display-inline">The
head of a covered element of the intelligence community may designate himself
or herself as the senior intelligence management official responsible for
correcting a long-standing, correctable material weakness.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id56287CE17FB648EF8588D8E2A84EF978"><enum>(C)</enum><header display-inline="yes-display-inline">Requirement to update
designation</header><text display-inline="yes-display-inline">In the event a
senior intelligence management official identified under subparagraph (A) is
determined by the head of the appropriate covered element of the intelligence
community to no longer be responsible for correcting a long-standing,
correctable material weakness, the head of such element shall identify the
successor to such official not later than 10 days after the date of such
determination.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID094cdb0a7dac48e2aed287678f5698b8"><enum>(3)</enum><header display-inline="yes-display-inline">Notification</header><text display-inline="yes-display-inline">Not later than 10 days after the date that
the head of a covered element of the intelligence community has identified a
senior intelligence management official pursuant to subsection (b)(1), the head
of such element shall provide written notification of such identification to
the Director of National Intelligence and to such senior intelligence
management official.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID1cbd3f2092b94b3c8e906c89ea84eeab"><enum>(4)</enum><header display-inline="yes-display-inline">Independent review</header>
<subparagraph commented="no" display-inline="no-display-inline" id="idE2BF081ED39641279C02B5540C4D300E"><enum>(A)</enum><header display-inline="yes-display-inline">Notification of correction of
deficiency</header><text display-inline="yes-display-inline">A senior
intelligence management official who has received a notification under
paragraph (3) regarding a long-standing, correctable material weakness shall
notify the head of the appropriate covered element of the intelligence
community, not later than 5 days after the date that such official determines
that the specified material weakness is corrected.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDc443ef64e5194811bcd90c365303fb9d"><enum>(B)</enum><header display-inline="yes-display-inline">Requirement for independent review</header>
<clause commented="no" display-inline="no-display-inline" id="id8F3624E3E4EC48E0AFD3B131F792A58B"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Not later than 10 days after the date a
notification is provided under subparagraph (A), the head of the appropriate
covered element of the intelligence community shall appoint an independent
auditor to conduct an independent review to determine whether the specified
long-standing, correctable material weakness has been corrected.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID3a7b59052a554103ab258d79b6ba58e9"><enum>(ii)</enum><header display-inline="yes-display-inline">Review already in process</header><text display-inline="yes-display-inline">If an independent review is already being
conducted by an independent auditor, the head of the covered element of the
intelligence community may approve the continuation of such review to comply
with clause (i).</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID3442a0a3ecb348a0b89ca3b022302985"><enum>(iii)</enum><header display-inline="yes-display-inline">Conduct of review</header><text display-inline="yes-display-inline">A review conducted under clause (i) or (ii)
shall be conducted as expeditiously as possible and in accordance with
generally accepted accounting principles.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID4125aa888bc44025a7e7bc3a63d9fb6c"><enum>(C)</enum><header display-inline="yes-display-inline">Notification of results of
review</header><text display-inline="yes-display-inline">Not later than 5 days
after the date that a review required by subparagraph (B) is completed, the
independent auditor shall submit to the head of the covered element of the
intelligence community, the Director of National Intelligence, and the senior
intelligence management official involved a notification of the results of such
review.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDcb4718ab787e4590b47309defd8457c1"><enum>(5)</enum><header display-inline="yes-display-inline">Congressional oversight</header><text display-inline="yes-display-inline">The head of a covered element of the
intelligence community shall notify the congressional intelligence committees
not later than 30 days after the date of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID59b408d6c2f345d0a9f293053f55a182"><enum>(A)</enum><text display-inline="yes-display-inline">that a senior intelligence management
official is identified under paragraph (2)(A) and notified under paragraph (3);
or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF613A456F7ED4222836B592166F8F38E"><enum>(B)</enum><text display-inline="yes-display-inline">the correction of a long-standing,
correctable material weakness, as verified by an independent review under
paragraph (4)(B).</text>
</subparagraph></paragraph></subsection></section><section id="id767C7AD7470C4EFAB356B1DE268608B0"><enum>6009.</enum><header>Ending the
IRS slush fund</header><text display-inline="no-display-inline">The Internal
Revenue Service shall deposit in the Treasury as miscellaneous receipts all of
the fees it receives for services.</text>
</section><section id="idCCC32CFCC4004046B658FDF761B7DC7B"><enum>6010.</enum><header>Rescinding
unspent earmarks</header>
<subsection id="id8BAA78224F2E41908D2656608847F478"><enum>(a)</enum><header>Definition</header><text>In
this section, the term <term>earmark</term> means the following:</text>
<paragraph id="ID62bf5f66c18845ecabd3d161fcde6141"><enum>(1)</enum><text>A congressionally
directed spending item, as defined in Rule XLIV of the Standing Rules of the
Senate.</text>
</paragraph><paragraph id="IDb049bd9726b14bcdb817099eb3c5a318"><enum>(2)</enum><text>A congressional
earmark for purposes of Rule XXI of the House of Representatives.</text>
</paragraph></subsection><subsection id="IDbde892ba61344c6c8fc0205eddd00d0e"><enum>(b)</enum><header>Rescission</header><text display-inline="yes-display-inline">Any appropriated earmark with more than 90
percent of the appropriated amount remaining available for obligation at the
end of the 9th fiscal year following the fiscal year in which the earmark was
made available is rescinded effective at the end of that 9th fiscal
year.</text>
</subsection><subsection id="IDcf5bc2d8fbf84048971966e7f610b60a"><enum>(c)</enum><header>Agency
identification and reports</header>
<paragraph id="IDffae7e85e870420c8a4e050ed8b88783"><enum>(1)</enum><header>Agency
identification</header><text>Each Federal agency shall identify and report
every project that is an earmark with an unobligated balance at the end of each
fiscal year to the Director of OMB.</text>
</paragraph><paragraph id="ID9f43a74448fd41ce9707e3ce546ea61e"><enum>(2)</enum><header>Annual
report</header><text>The Director of OMB shall submit to Congress and
publically post on the website of OMB an annual report that includes—</text>
<subparagraph id="ID781882735170492fae31959c0abf2d37"><enum>(A)</enum><text>a listing and
accounting for earmarks with unobligated balances summarized by agency
including the amount of the original earmark, amount of the unobligated balance
and year when the funding expires, if applicable;</text>
</subparagraph><subparagraph id="ID3d7e7e662bf74889bdda0f51c696b515"><enum>(B)</enum><text>the number of
rescissions resulting from this section and the annual savings resulting from
this section for the previous fiscal year; and</text>
</subparagraph><subparagraph id="ID7f573eb3fc0b499f871667bab143c41f"><enum>(C)</enum><text>a listing a
accounting for earmarks scheduled to be rescinded at the end of the current
fiscal year.</text>
</subparagraph></paragraph></subsection></section><section id="id1043736824794093B5955ED109A70A3C"><enum>6011.</enum><header>Repealing the
rail-line relocation program</header><text display-inline="no-display-inline">Section 20154 of title 49, United States
Code, is repealed.</text>
</section><section id="idC4B28099ABF1411C8EA5B4A099017D2F"><enum>6012.</enum><header>Eliminating
Radio/TV marti at the Office of Cuba Broadcasting</header>
<subsection id="idBBCCC9D82A7546C48E58F1489F9907CC"><enum>(a)</enum><header>Radio
Broadcasting to Cuba Act</header><text>The Radio Broadcasting to Cuba Act (22
U.S.C. 1465 et seq.) is repealed.</text>
</subsection><subsection id="id6F8EB81BDC874B5B9BF48B93D1CDA3B3"><enum>(b)</enum><header>Television
Broadcasting to Cuba Act</header><text display-inline="yes-display-inline">The
Television Broadcasting to Cuba Act (22 U.S.C. 1465aa et seq.) is
repealed.</text>
</subsection><subsection id="id8AEC4D8CC0EE4DCEABACF0B96B33EF07"><enum>(c)</enum><header>Report on
public communication with Cuban people</header><text display-inline="yes-display-inline">Not later than 90 days after the date of
the enactment of this Act, the Secretary of State, in consultation with the
Broadcasting Board of Governors, the International Broadcasting Bureau, and
other relevant agencies and organizations, shall submit a report to the
<committee-name committee-id="SSAP00">Committee on Appropriations of the
Senate</committee-name>, the <committee-name committee-id="SSFR00">Committee on
Foreign Relations of the Senate</committee-name>, the
<committee-name committee-id="">Committee on Appropriations of the House of
Representatives</committee-name>, and the <committee-name committee-id="">Committee on Foreign Affairs of the House of
Representatives</committee-name> that describes—</text>
<paragraph id="ID7f1efa1347254d57be350860a0a09929"><enum>(1)</enum><text>alternatives to
television and radio broadcasts for disseminating news and information to, and
otherwise communicating with, the Cuban people, including DVDs, the Internet,
cell phones, and other handheld electronic devices; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID8d8f9c365c5b40f998790f0f3a1ebccd"><enum>(2)</enum><text>the relative
effectiveness of each of the communication alternatives identified under
paragraph (1).</text>
</paragraph></subsection></section><section id="idA3ABA9D3594B4340B2EF66C111518BD2"><enum>6013.</enum><header>Ending
support for the Colombian military</header><text display-inline="no-display-inline">None of the funds appropriated or otherwise
made available by any Act under the headings <quote><header-in-text level="subparagraph" style="OLC">international narcotics control and law
enforcement</header-in-text></quote> or <quote><header-in-text level="subparagraph" style="OLC">foreign military financing
program</header-in-text></quote> may be used for direct support to the military
forces of the Government of Colombia.</text>
</section>