[Congressional Record Volume 143, Number 91 (Wednesday, June 25, 1997)]
[House]
[Pages H4385-H4415]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




PROVIDING FOR CONSIDERATION OF H.R. 2015, BALANCED BUDGET ACT OF 1997, 
               AND H.R. 2014, TAXPAYER RELIEF ACT OF 1997

  Mr. SOLOMON. Mr. Speaker, by direction of the Committee on Rules, I 
call up House Resolution 174 and ask for its immediate consideration.
  The Clerk read the resolution, as follows:

                              H. Res. 174

       Resolved, That upon the adoption of this resolution it 
     shall be in order without intervention of any point of order 
     to consider in the House the bill (H.R. 2015) to provide for 
     reconciliation pursuant to subsections (b)(1) and (c) of 
     section 105 of the concurrent resolution on the budget for 
     fiscal year 1998. The bill shall be considered as read for 
     amendment. The amendment printed in the Congressional Record 
     and numbered 1 pursuant to clause 6 of rule XXIII shall be 
     considered as adopted. All points of order against provisions 
     in the bill, as amended, are waived. The previous question 
     shall be considered as ordered on the bill, as amended, to 
     final passage without intervening motion except: (1) three 
     hours of debate equally divided and controlled by the 
     chairman and ranking minority member of the Committee on the 
     Budget; and (2) one motion to recommit with or without 
     instructions.
       Sec. 2. At any time after the adoption of this resolution 
     the Speaker may, pursuant to clause 1(b) of rule XXIII, 
     declare the House resolved into the Committee of the Whole 
     House on the state of the Union for consideration of the bill 
     (H.R. 2014) to provide for reconciliation pursuant to 
     subsections (b)(2) and (d) of section 105 of the concurrent 
     resolution on the budget for fiscal year 1998. The first 
     reading of the bill shall be dispensed with. All points of 
     order against consideration of the bill and against 
     provisions in the bill, as amended by this resolution, are 
     waived. General debate shall be confined to the bill and 
     shall not exceed three hours equally divided and 
     controlled by the chairman and ranking minority member of 
     the Committee on the Ways and Means. After general debate 
     the bill shall be considered for amendment under the five-
     minute rule. The amendment printed in the Congressional 
     Record and numbered 2 pursuant to clause 6 of rule XXIII 
     shall be considered as adopted in the House and in the 
     Committee of the Whole. The bill, as amended, shall be 
     considered as the original bill for the purpose of further 
     amendment and shall be considered as read. No other 
     amendment shall be in order except the further amendment 
     printed in the Congressional Record and numbered 1 
     pursuant to clause 6 of rule XXIII, which may be offered 
     only by Representative Rangel of New York or his designee, 
     shall be considered as read, shall be debatable for one 
     hour equally divided and controlled by the proponent and 
     an opponent, shall not be subject to amendment, and shall 
     not be subject to a demand for division of the question in 
     the House or in the Committee of the Whole. All points of 
     order against that amendment are waived. At the conclusion 
     of consideration of the bill, as amended, for amendment 
     the Committee shall rise and report the bill, as amended, 
     to the House with such further amendment as may have been 
     adopted. The previous question shall be considered as 
     ordered on the bill, as amended, and any further 
     amendments thereto to final passage without intervening 
     motion except one motion to recommit with or without 
     instructions.

  The SPEAKER pro tempore (Mr. Combest). The gentleman from New York 
[Mr. Solomon] is recognized for 1 hour.
  Mr. SOLOMON. Mr. Speaker, for the purposes of debate only, I yield 30 
minutes to the gentleman from Massachusetts [Mr. Moakley], pending 
which I yield myself such time as I may consume. During consideration 
of the resolution, all time yielded is for the purposes of debate only.
  (Mr. SOLOMON asked and was given permission to revise and extend his 
remarks and to include extraneous material.)
  Mr. SOLOMON. Mr. Speaker, House Resolution 174 is the customary 
structured rule for the consideration of a budget reconciliation bill. 
In this case, the rule provides for the consideration of reconciliation 
legislation in two parts, which reflects the bipartisan budget 
agreement reached between Congress and the White House on May 2, 1997.
  Mr. Speaker, this rule first waives all points of order against the 
consideration of the legislation, the Balanced Budget Act. The rule 
provides 3 hours of debate on the entitlement reform bill, equally 
divided and controlled by the chairman and ranking member of the 
Committee on the Budget.
  The rule also considers the amendment printed in the Congressional 
Record and numbered 1 as adopted upon the adoption of this rule. This 
amendment by the gentleman from Ohio [Mr. Kasich] reflects hours of 
negotiations between Democrats and Republicans and between the White 
House and this Congress, both bodies of this Congress.
  This amendment attempts to resolve many of the outstanding issues 
related to our bipartisan efforts to reform the Nation's out-of-control 
entitlement spending. And we all know that it is totally out of 
control.
  The rule further waives all points of order against the provisions of 
the bill as amended by the rule. After the conclusion of the 3 hours of 
debate, the rule provides for one motion to recommit, with or without 
instructions.
  Yesterday, we informed the minority members of the Committee on Rules 
that we were prepared to grant a rule allowing one Democrat substitute 
to be offered by the minority leader or his designee. However, we were 
informed yesterday that such a substitute would not be offered, even 
though we were willing to make that amendment in order.

                              {time}  1145

  In addition, section 2 of the rule provides for consideration of the 
second part of this reconciliation product, the Taxpayer Relief Act. 
The rule waives all points of order against consideration of this bill 
and against its provisions as amended by the rule. The rule further 
provides another 3 hours of general debate on this tax cutting measure, 
equally divided and controlled by the chairman and the ranking member 
of the Committee on Ways and Means. The rule also considers the 
amendment printed in the Congressional Record and numbered 2 as adopted 
in the House and in the Committee of the Whole. This amendment, drafted 
by the gentleman from Texas [Mr. Archer], reflects further negotiations 
between the various interested parties involved in the implementation 
of the tax portion of this bipartisan agreement with the White House.
  Furthermore, the rule provides for the consideration of a substitute 
amendment printed in the Congressional Record and numbered 1 only if 
offered by the gentleman from New York [Mr. Rangel] or his designee.
  Mr. Speaker, this amendment is debatable for 1 hour equally divided 
and controlled by the proponent and an opponent, and is not subject to 
amendment or to a demand for a division of the question in the House or 
in the Committee of the Whole and all points of order are waived 
against the amendment. This amendment, offered by the gentleman from 
New York [Mr. Rangel], the ranking Democrat on the Committee on Ways 
and Means, represents the minority substitute to the tax bill.
  Finally, the rule provides for one motion to recommit, with or 
without instructions.
  Mr. Speaker, after hearing testimony up in the Committee on Rules 
yesterday for more than 5 hours and from more than 40 witnesses, the 
Committee on Rules has produced a rule that is very similar to that 
used on reconciliation bills going all the way back to the 96th 
Congress, over two decades. Furthermore, after consultation with the 
minority and our committee, we actually extended the total debate time 
on the two bills from 5 hours to 7

[[Page H4386]]

hours. We have made every effort to make this a bipartisan rule to 
consider this bipartisan balanced budget agreement. I would urge all my 
colleagues to support it.
  Mr. Speaker, as to the contents of these bills, I can sum up their 
significance in two short statements:
  First, the first balanced budget in 30 years. Second, the first major 
tax cut in 16 years.
  While these two bills before us contain a variety of provisions, I 
want to focus on one in particular. In introducing his tax cut plan to 
the American people back in 1962, then President John F. Kennedy 
stated:

       Prosperity is the real way to balance the budget. By 
     lowering taxes, by increasing jobs and incomes, we can expand 
     tax revenues and finally bring our budget into balance.

  President Kennedy was right then and the bill before us today 
represents those truths.
  Mr. Speaker, over the past two decades, this Congress has held this 
same debate over and over and over again. How can we reduce the tax 
burden, reduce the deficit and balance the budget at the same time? 
Today's budget agreement is quite a different approach than has been 
tried in previous budget agreements. For instance, in 1990, Congress 
and the President, and at that time the President was George Bush, 
negotiated a bipartisan budget agreement in an effort to reduce the 
deficit only to result in a $100 billion tax increase and an unbalanced 
budget. That is what happened under a Republican President and a 
Democrat Congress back in 1990.
  Three years later, in 1993, the President, that is Bill Clinton, and 
congressional Democrats, who were in control of this place at that 
time, gathered together and negotiated another budget deal to reduce 
the deficit. This time the result was a $200 billion tax increase, the 
largest tax increase in the history of this Nation, and still no 
balanced budget.
  A year later, in 1994, the American people called on their government 
to try a new approach, to take a new look at an old approach used in 
previous decades under Presidents such as John F. Kennedy and Ronald 
Reagan. At the very beginning of the 104th Congress, the new Republican 
majority, in full agreement with President John F. Kennedy's assertion 
back in 1962, sought to provide the American family with meaningful tax 
cuts and a balanced budget. We are all very familiar with the extensive 
debates over tax relief in the past Congress. Despite all the talk, the 
American family still remains overtaxed and overburdened by its 
Government. That is this Government that we stand in here today.
  Some of my colleagues may chuckle a little over this statement, 
exclaiming there goes Jerry Solomon again with his Reaganomics outlook 
on the world, but it is a fact that in the past 16 years, this Congress 
has raised our Nation's taxes over 5 times and by hundreds of billions 
of dollars. We have not cut taxes, we have raised taxes right here in 
this body. As a result, it is no exaggeration for me to say that the 
American family pays a much higher percentage of its hard-earned income 
in taxes right now today than at any time in recent history.
  Today we have before us a budget bill that represents the first major 
tax cut in 16 years. Mr. Speaker, it is major. While we have had much 
larger tax relief packages before this House over the past few years, 
the probability that this tax relief bill will receive bipartisan 
support and be signed into law is much, much higher than those 
previously before us and that should be recognized here today. This is 
going to become law.
  Furthermore, contrary to what we are going to hear from the other 
side today, from some Members of the other side because many Members on 
the Democrat side are going to support this measure, the majority of 
this tax relief, 72 percent of it, will go to middle-income wage-
earning families making between $20,000 and $70,000. This will better 
enable all of America's families to care for their children and their 
communities and represents a good first step in rolling back the high 
level of the Government's financial interference in the lives of these 
hardworking families.
  Finally, Mr. Speaker, it should be noted that these two bills before 
us today actually carry changes in the underlying laws that deliver the 
tax cuts and the spending cuts. This is very, very important, 
especially to some of the younger Members because in years past we have 
adopted budgets that put us on a glide path to a balanced budget, but 
when it came to making the hard votes, we did not do it, we abandoned 
it, and that is why the deficits continued. It is easy to vote for 
legislation that actually calls for these cuts to be done as we did in 
the budget agreement, and everybody sent out their press releases on 
it. It is quite something different to actually vote for these cuts. I 
urge all of the Members here today to support these bills and then 
follow through on the 13 appropriation bills that will follow, because 
that is where it is going to count.
  Members have my pledge that I am going to vote for every one of these 
cuts represented in this agreement with the Republicans and Democrats 
in this House, with the Senate, and with the President. These are the 
kind of bills that actually make a difference. I applaud all of my 
colleagues on both sides of the aisle.
  Mr. Speaker, I include the following extraneous material for the 
Record:

                                      HOUSE RECONCILIATION RULES 1980-1996                                      
----------------------------------------------------------------------------------------------------------------
       Congress and year                   Bill No.                        Rule No.               Terms of rule 
----------------------------------------------------------------------------------------------------------------
96th (1980)...................  H.R. 7765.....................  H. Res. 776...................  10-hours general
                                                                                                 debate (1-hr.  
                                                                                                 ea. To 8       
                                                                                                 comms., 2-hrs. 
                                                                                                 Ways and       
                                                                                                 Means); 4      
                                                                                                 amendments     
                                                                                                 allowed; (1)   
                                                                                                 Budget Comm.;  
                                                                                                 (2) Strike     
                                                                                                 subtitle; (3)  
                                                                                                 Rep. Vanik (D);
                                                                                                 (4) Rep. Bauman
                                                                                                 (R); one motion
                                                                                                 to recommit.   
97th (1981)...................  H.R. 3982.....................  H. Res. 169...................  8-hrs. General  
                                                                                                 debate, comms. 
                                                                                                 of juris.;     
                                                                                                 amendment in   
                                                                                                 the nature of  
                                                                                                 substitute by  
                                                                                                 chairman of    
                                                                                                 Budget Comm.; 6
                                                                                                 amendments by  
                                                                                                 Rep. Latta; 1- 
                                                                                                 hr.; one motion
                                                                                                 to recommit.   
98th (1983)...................  H.R. 4169.....................  H. Res. 344...................  1-hr. gen.      
                                                                                                 debate, Budget 
                                                                                                 Comm.;         
                                                                                                 amendment in   
                                                                                                 nature of      
                                                                                                 substitute made
                                                                                                 in 1 amendment 
                                                                                                 by chmn. Budget
                                                                                                 Comm.; one     
                                                                                                 motion to      
                                                                                                 recommit, with 
                                                                                                 or without     
                                                                                                 instructions.  
98th (1984)...................  H.R. 5394.....................  H. Res. 483...................  6-hrs. gen.     
                                                                                                 debate, Budget 
                                                                                                 Comm.; (1)     
                                                                                                 amend. by W&M  
                                                                                                 Comm., 1-hr;   
                                                                                                 (2) amend. by  
                                                                                                 Rep. Pepper, 30-
                                                                                                 mins.; one     
                                                                                                 motion to      
                                                                                                 recommit.      
99th (1985)...................  H.R. 3500.....................  H. Res. 296...................  4-hrs. gen.     
                                                                                                 debate, Budget 
                                                                                                 Comm.; self-   
                                                                                                 execute amend.;
                                                                                                 (1) Rep. Fazio,
                                                                                                 30-mins.; Rep. 
                                                                                                 Latta, 1-hr.;  
                                                                                                 (3) Rep.       
                                                                                                 Florio, 30-    
                                                                                                 mins; one      
                                                                                                 motion to      
                                                                                                 recommit.      
99th (1986)...................  H.R. 5300.....................  H. Res. 558...................  3-hrs. gen.     
                                                                                                 debate, Budget 
                                                                                                 Comm.; self-   
                                                                                                 execute amend.;
                                                                                                 (1) Rep.       
                                                                                                 Rodino, 30-    
                                                                                                 mins.; (2) Rep.
                                                                                                 Rodino, 30-    
                                                                                                 mins.; (3) Rep.
                                                                                                 Wylie, 3-mins.;
                                                                                                 one motion to  
                                                                                                 recommit       
                                                                                                 without        
                                                                                                 instructions.  
100th (1987)..................  H.R. 3545.....................  H. Res. 296/298...............  3-hrs. gen.     
                                                                                                 debate, Budget 
                                                                                                 Comm.; self-   
                                                                                                 execute amend.;
                                                                                                 (1) Rep Michel,
                                                                                                 1-hr.; one     
                                                                                                 motion to      
                                                                                                 recommit       
                                                                                                 without        
                                                                                                 instructions.  
101st (1989)..................  H.R. 3299.....................  H. Res. 245/249...............  6-hrs. gen.     
                                                                                                 debate, Budget 
                                                                                                 Comm.; self-   
                                                                                                 execute amend.;
                                                                                                 10 amendments  
                                                                                                 (D-7; R-3),    
                                                                                                 debate from 30-
                                                                                                 mins. to 2-hrs.
                                                                                                 ea. (varies by 
                                                                                                 amendment); one
                                                                                                 motion to      
                                                                                                 recommit.      
101st (1990)..................  H.R. 5835.....................  H. Res. 509...................  3-hrs. gen.     
                                                                                                 debate, Budget 
                                                                                                 Comm.; self-   
                                                                                                 execute        
                                                                                                 amends.; (1)   
                                                                                                 Rep.           
                                                                                                 Rostenkowski, 1-
                                                                                                 hr.; one motion
                                                                                                 to recommit    
                                                                                                 without        
                                                                                                 instructions.  
103d (1993)...................  H.R. 2264.....................  H. Res. 186...................  2-hrs. gen.     
                                                                                                 debate; self-  
                                                                                                 execute amend. 
                                                                                                 (54 page); (1) 
                                                                                                 Rep. Kasich    
                                                                                                 substitute,    
                                                                                                 (290 pages), 1-
                                                                                                 hr.; one motion
                                                                                                 to recommit    
                                                                                                 without        
                                                                                                 instructions.  
104th (1995)..................  H.R. 2491.....................  H. Res. 245...................  3-hrs. gen.     
                                                                                                 debate (via.   
                                                                                                 u.c. request); 
                                                                                                 an additional 3-
                                                                                                 hrs. gen.      
                                                                                                 debate, Budget 
                                                                                                 Committee; self
                                                                                                 execute        
                                                                                                 amendment in   
                                                                                                 the nature of a
                                                                                                 substitute; 1  
                                                                                                 substitute     
                                                                                                 amendment if   
                                                                                                 offered by the 
                                                                                                 Minority Leader
                                                                                                 or his         
                                                                                                 designee,      
                                                                                                 debatable for 1
                                                                                                 hour; one      
                                                                                                 motion to      
                                                                                                 recommit which 
                                                                                                 may contain    
                                                                                                 instructions if
                                                                                                 offered by the 
                                                                                                 Minority Leader
                                                                                                 or his         
                                                                                                 designee.      
104th (1996)..................  H.R. 3734.....................  H. Res. 482...................  2-hrs. gen.     
                                                                                                 debate, Budget 
                                                                                                 Comm.; self    
                                                                                                 execute        
                                                                                                 amendment in   
                                                                                                 nature of      
                                                                                                 substitute; 1  
                                                                                                 amendment if   
                                                                                                 offered by the 
                                                                                                 chairman of the
                                                                                                 Budget         
                                                                                                 Committee or   
                                                                                                 his designee,  
                                                                                                 debatable for  
                                                                                                 20 minutes.;   
                                                                                                 one motion to  
                                                                                                 recommit, with 
                                                                                                 or without     
                                                                                                 instructions.  
----------------------------------------------------------------------------------------------------------------


[[Page H4387]]


                            REPORT LAYOVER PERIOD FOR RECONCILIATION BILLS, 1980-1996                           
----------------------------------------------------------------------------------------------------------------
                                                                                                         Layover
               Congress and year                            Bill no.               Report      Bill      period 
                                                                                   filed    considered   (days) 
----------------------------------------------------------------------------------------------------------------
96th (1980)....................................  H.R. 7765.....................    7/21/80      9/4/80        45
97th (1981)....................................  H.R. 3982.....................    6/19/81     6/25/81         6
98th (1983)....................................  H.R. 4169.....................   10/20/83    10/25/83         5
98th (1984)....................................  H.R. 5394.....................      (\1\)     4/12/84        NA
99th (1985)....................................  H.R. 3500.....................    10/3/85    10/23/85        20
99th (1986)....................................  H.R. 5300.....................    7/31/86     8/24/86        24
100th (1987)...................................  H.R. 3545.....................   10/26/85    10/29/85         3
101st (1989)...................................  H.R. 3299.....................    9/20/89     9/26/89         6
101st (1990)...................................  H.R. 5835.....................   10/15/90    10/16/90         1
103rd (1993)...................................  H.R. 2264.....................    5/25/93     5/27/93         2
104th (1995)...................................  H.R. 2491.....................   10/17/95    10/25/95         8
104th (1996)...................................  H.R. 3734.....................    6/27/96     7/17/96        10
----------------------------------------------------------------------------------------------------------------
\1\ Not reported.                                                                                               
                                                                                                                
Notes: The dates of bill consideration is the first day of consideration and is based on the date on which the  
  rule was adopted. The layover period is based on the assumption that the report was available to Members on   
  the first day after the report was filed (which may not always have been the case). Under clause 2(1)(6) of   
  rule XI, it is in order to consider a bill on the third day the report is available to Members. All           
  reconciliation rules, however, have routinely waived all points of order against consideration of the bill,   
  even if the three-day availability requirement was complied with.                                             
                                                                                                                
Sources: House Calendars.                                                                                       

  Mr. Speaker, I reserve the balance of my time.
  Mr. MOAKLEY. Mr. Speaker, I thank the gentleman from New York [Mr. 
Solomon], the chairman of the Committee on Rules, for yielding me the 
customary half-hour, and I yield myself such time as I may consume.
  Mr. Speaker, the reconciliation bills we are considering this week 
show very clearly the difference between Democrats and Republicans. To 
put it simply, on one hand, my Republican colleagues want to help 
people who make enormous amounts of money and inherit more money on top 
of that. On the other hand, Mr. Speaker, my Democratic colleagues and I 
want to help middle-class working families and small business owners.
  When these bills come up for votes, we can take our pick. I think the 
choice is obvious. More than half the tax cuts in the Republican tax 
bill are for people making over $250,000 a year. Three-quarters of the 
tax cuts in the Democratic alternative are for people making less than 
$58,000 a year.
  The Republican tax bill helps only richer families send their kids to 
college. The Democratic alternative gives a full $1,500 tax credit for 
college students. The Republican tax bill takes the $500 per child 
credit away from low-income working families. The Democratic 
alternative makes sure that every low- and middle-income working family 
gets the $500 per child tax credit.
  The Republican tax bill, Mr. Speaker, gives huge tax breaks to rich 
people who sell stocks and bonds. The Democratic alternative gives tax 
breaks to the middle-class people who sell homes, who sell their farms 
or small businesses.
  The Republican bill also marks a serious departure from the budget 
agreement. My Republican colleagues did not keep their word to provide 
the education tax credits they promised or to preserve the rights of 
legal immigrants that they also promised. The Republican reconciliation 
bill hands the richest 1 percent an additional $27,000 each, while it 
takes $63 away from each family in the bottom 20 percent.
  Mr. Speaker, the Republican bill will mean serious trouble to our 
teaching hospitals. The Boston teaching hospitals alone will lose more 
than $700 million over a 5-year budget period.
  Mr. Speaker, I do not know if our teaching hospitals can survive this 
kind of cut. They have already made huge changes, drastic changes, 
undergone complicated mergers and cut costs to save money, but the fact 
remains that last year Boston Medical Center saw 58,000 patients for 
nothing, 58,000 patients for free. Yet today my Republican colleagues 
are asking hospitals to make do with even less, and it is the same for 
teaching hospitals all over the country.
  Mr. Speaker, the United States is lucky to have the best hospitals, 
the best medical care in the entire world. Take it from me, personally, 
I know this.
  Mr. Speaker, I believe we should be doing all we can to keep American 
health care not only the best in the world but also keep it accessible 
to everyone. This bill does not do that.
  In the Committee on Rules last night, my Republican colleagues 
rejected an amendment offered by the gentleman from Massachusetts [Mr. 
Kennedy] to change the funding for children's health insurance so the 
States with children's health care laws already on the books like 
Massachusetts, like New York, like Florida are not penalized.
  Mr. Speaker, I urge my colleagues to join me in defeating the 
previous question to make in order 22 amendments that were rejected in 
the Committee on Rules last night, including the Barton-Minge amendment 
on enforcing the budget agreement and the Taylor amendment to let 
veterans keep their veterans health care regardless of how old they 
are. I want to add, Mr. Speaker, that this veterans health issue has 
been cosponsored by nine of my colleagues on the Committee on Rules.
  I urge my colleagues to defeat the previous question.
  Mr. Speaker, I reserve the balance of my time.
  Mr. SOLOMON. Mr. Speaker, I yield myself such time as I may consume, 
briefly to just repeat my favorite hero's line, ``Well, here we go 
again,'' talking about the rich.
  In the Hudson Valley where I live, it is about 200 miles long and 50 
miles wide and has the Catskill Mountains on one end and the Adirondack 
Mountains on the other and a valley in between, there are very few rich 
people there. They are all hard-working people. They have worked all 
their lives. They have saved a little bit even under hard times.
  Let me just give my colleagues one example, a couple I know that 
worked for Sears Roebuck. They worked for Sears Roebuck, both of them 
together, for 38 years. Sears Roebuck does not pay the highest salaries 
but they have a pretty good little pension plan and have a great stock 
option plan for people that work for them. For these 38 years, this 
couple has been taking advantage of those options, living with a wage 
scale much lower than their peers, but they managed to save the money 
and buy that stock and they have had it now for 35, 40 years. Do my 
colleagues know what that stock is worth today?

                              {time}  1200

  It is a nest egg that they can now retire on. They can, if they want 
to, move out of the cold north country where I live, and they can move 
to Florida, and they can buy themselves a little home, and they can 
live pretty decently for the rest of their lives.
  Now my good friend the gentleman from Massachusetts [Mr. Moakley] 
thinks those people are rich because they are going to take advantage 
of the capital gains tax cut. Well, I do not think that is rich at all. 
Those people have incomes of way under $70,000 combined, and they are 
going to be able to take advantage of this capital gains tax cut.
  I also represent in that valley hundreds and hundreds of farmers; 
most of them are dairy farmers; and those people over the years have 
gotten up at 4 o'clock in the morning when it was 30 below zero.
  I did a piece on public television last year in which we brought 
public television up there, and they saw these people out there at 5 
o'clock in the morning milking these cows when it was 31 below zero. 
And, as my colleagues know, those people have paid the taxes on that 
farm, on those several hundred acres of land, and sure they are land 
rich, but they are cash poor. And now, if they pass away and their sons 
or daughters have worked on that same farm for all the time they were 
growing up, when they were 4, 5, and 6-years-old up to maybe 20 or 25, 
and now when they die the Federal Government is going to make them sell 
that land to pay the estate tax.
  Mr. Speaker, that just is not right. As my colleagues know, they paid 
taxes on that land, they paid the income taxes all those years, and now 
they are going to be penalized and they cannot keep that farm in the 
family. It is happening all over Texas, it is happening all over 
America, but especially up in the north country where I live where it 
is doggone tough to make a living especially in the winter time.
  So let us have enough of this rich talk, and let us get on to give 
meaningful tax cuts to all of the American people. That is what America 
is all about.
  Mr. Speaker, having said that, I yield such time as he may consume to 
the gentleman from Florida [Mr. Goss] one of those northerners that 
moved to Florida many years ago. He is the chairman of the Permanent 
Select Committee on Intelligence, but he is also a very valuable member 
of the Committee on Rules, and I yield to him to get some of his sage 
advice.
  (Mr. GOSS asked and was given permission to revise and extend his 
remarks.)

[[Page H4388]]

  Mr. GOSS. Mr. Speaker, I thank the distinguished gentleman from New 
York [Mr. Solomon] for yielding this time to me, and I obviously rise 
in strong support of this fair and I think very appropriate rule for 
what we are about, which permits consideration of 2 important measures, 
the Balanced Budget Act and the Taxpayer Relief Act, in fact probably 
one of the most important things we will do in this session of 
Congress.
  Today, we take another major step toward the first balanced budget in 
over a generation, as the gentleman from New York [Mr. Solomon] said, 
and the first actual relief for American taxpayers in almost a 
generation. Despite this indisputable progress, we continue to hear 
this same tired rhetoric, we have already heard it, this class warfare 
from the defenders of the status quo. As usual they claim they have a 
study or they will get one that proves that the majority of the tax 
cuts are going to go to the, quote, rich. Of course, they define rich 
to suit their own purpose.
  Mr. Speaker, if someone earns $40,000 a year, the big Government 
crowd is going to consider them rich, and this is how they are going to 
do it: artificially inflate their income through the addition of their 
future pension as well as the potential rental value of their home. I 
am sure this is going to be news to thousands of new-found rich people 
in my district, and I imagine they are going to be a little shocked by 
it, as the rest of America will be as they discover they have been 
elevated to rich.
  Mr. Speaker, actually the definition of rich is, ``If you're not on 
welfare, you're rich.''
  Given these partisan distortions it is important to let the American 
people know that what we are doing today is important work and it is 
going to affect them, and it is going to affect them positively.
  We are taking the necessary steps to save the Medicare Program, and 
it is facing impending bankruptcy. But instead of resorting to the tax 
increases and the draconian provider cutbacks that we have talked about 
in the past, we achieve our savings through patient choice. Americans 
want choice in their medical care, and we are providing choice, and we 
are using free market competition, and we believe Americans will have 
better access, better choice, better medical service in the end, and we 
think we will end up with a stronger Medicare program as a result.
  We are also providing overdue relief to families through the child 
tax credit and reform of the punitive death tax. I do not understand 
why we do not all understand that any American who works hard, saves 
little and wants to provide for his wife and his kids after he is gone, 
or his grandkids, should be able to do that. Why should the Government 
come in and take all of his hard work? After all I think what propels a 
great amount of the work in this country is the responsibility 
individuals have to go to work and provide for their families.
  As a father of four I certainly feel that way. I think most Americans 
do. I think I owe it to my family and to my community and to my country 
to look out for my family and provide for them. I do not go for this 
new mantra that Uncle Sam has been replaced by Father Government. 
Government is not my daddy, and it is not anyone else's either. I think 
we need to get away from that and remember that the people who work in 
this country work with the sense of responsibility to their family and 
should be able to provide for them after they are gone.
  We will furnish responsible Americans with more ways to save for 
their future by expanding IRA's, and we will promote economic growth by 
slicing the punitive capital gains tax.
  But most important, today we will send a message to our children and 
our grandchildren that their future is not going to be mortgaged for 
Washington's profligate spending habits, and we all know what they are. 
The last time this Congress balanced the budget our national debt stood 
at $368 billion, and $368 billion is a lot of money. Today that 
national debt is at $54 trillion, trillion, and it is still climbing. 
With this package Congress has finally acknowledged what most American 
have known for a very, very long time:
  Uncle Sam is obese, Uncle Sam needs a diet, and it is time.
  Mr. Speaker, today is about historic progress; slow and steady, yes, 
but it is progress. This package is not perfect, but it is very good 
work, and it is bipartisan, and it is multibranch. And, yes, there is 
more to do, and there always will be if we are going to have jobs up 
here in Washington representing the people of this country, and that is 
the form of Government we have.
  But above all this package represents a hard-earned victory, I think, 
for the American taxpayer, the middle-income earner, the hard worker, 
the people out there worrying about the future of their families and 
their kids. And I think it is a victory for our kids, too, because we 
are going to rein in taxing and not send the bill to them any more.
  I very passionately urge for a ``yes'' vote on this rule and for the 
important reconciliation bills that it carries. This is the work we are 
about; this is what we are asked to do.
  Mr. MOAKLEY. Mr. Speaker, I yield 1 minute to the gentleman from New 
Jersey [Mr. Pallone].
  Mr. PALLONE. Mr. Speaker, I voted for the balanced budget resolution, 
and I know that both Democrats and Republicans in this House believe 
strongly in a balanced budget. But this proposal the Republicans have 
put forward today is not fair to working class, middle-class, people; 
it is not fair to seniors, and it is not fair to children, and I want 
to tell my colleagues why.
  These tax cuts that the Republicans have proposed, they are for the 
wealthy, wealthy individuals and corporations. They are not helping the 
working middle class person. The person who needs that child tax credit 
in many cases is not going to get it even though they are working, 
sometimes two parents working. The person who needs that college 
credit, either a tuition tax deduction or a hope scholarship program, 
that money is not going to be fulfilled. What the President promised is 
not in this. The Republicans have broken the deal, and they are not 
giving middle-class and working-class people that college tuition break 
that they were expecting as part of this deal.
  And Medicare, Medicare for seniors, we were promised this was going 
to be solvent and we were going to work toward the solvency. They have 
put in, the Republicans, provisions that will break the Medicare 
Program.
  The SPEAKER pro tempore. The gentleman from New York [Mr. Solomon] 
has 12 minutes remaining, and the gentleman from Massachusetts [Mr. 
Moakley] has 24 remaining.
  Mr. SOLOMON. Mr. Speaker, I reserve the balance of my time.
  Mr. MOAKLEY. Mr. Speaker, the gentleman from New York, Mr. Solomon's, 
speech was so soothing and charming, I did not realize he used all that 
time.
  Mr. Speaker, I yield 2 minutes to the gentleman from California [Mr. 
Miller].
  (Mr. MILLER of California asked and was given permission to revise 
and extend his remarks.)
  Mr. MILLER of California. Mr. Speaker, today is the day when we begin 
the process where we rearrange the priorities of this Nation, where we 
rearrange the priorities of this Nation that for many years has taken 
care of the senior citizens of this country by providing them Medicare 
healthcare coverage for their elderly years, where we rearrange the 
priorities of this Nation where we have tried to make sure that 
children had coverage of health care, where we have tried to provide 
families the means by which they could pay for the college education of 
their children.
  What we now see in the budget plan that we will debate this afternoon 
and in the tax bill that we will debate tomorrow is that all of those 
goals, all of those ideals of this Nation, are threatened because we 
have to have a tax bill that gives $27,000 in relief to people making 
more than $250,000 a year.
  Twenty-seven thousand dollars in tax relief, which is more than many 
families make all year long, must go to the wealthiest 1 percent in 
this country, and how do we pay for it? We pay for it by reneging on 
the promise to provide health care coverage for children. In the Senate 
they now talk about making 8 million elderly people who are between the 
ages of 65 and 67 wait 2 more years before they would have Medicare 
coverage by increasing the cost of the Medicare to those individuals.

[[Page H4389]]

  As my colleagues know, the interesting thing is that after the vote 
we took in 1993 where no Republicans voted for President Clinton's 
plan, we have dramatically reduced the deficit. The deficit is on its 
way to a balanced budget. If we did nothing, the budget would be 
balanced and we could take care of the problems in Medicare and 
Medicaid.
  But the Republicans have chosen another path. They have chosen the 
path to try to again return to the days where corporations that make 
millions of dollars in profit every year, as they did before 1986, 
would pay no taxes. They want to return to the days where people who 
can clip coupons pay a 20 percent tax rate while hard-working Americans 
pay a 28 percent tax rate.
  It is not fair, it is not equitable, and it is not right.
  Mr. MOAKLEY. Mr. Speaker, I yield 2 minutes to the gentlewoman from 
California [Ms. Pelosi].
  Ms. PELOSI. Mr. Speaker, I thank the gentleman for yielding.
  Mr. Speaker, the Federal budget should be a statement of our national 
values. How we spend the public's money should reflect what is 
important to us in our country, and surely we all agree that the health 
and well-being of our people should be a national priority. Indeed the 
American people continue to believe that access to quality health care 
should be a national priority.
  Unfortunately, the reconciliation bill does not expand access to 
health insurance. Indeed, this bill makes access to health care more 
difficult. Why are we moving toward covering fewer people than more 
people?
  Under this bill and actions taken by the Senate, an American baby 
born today would not have access to quality health care insurance until 
she is 67 years old. The bill before us today does not live up to the 
promise of expanding health care insurance to 5 billion of the 10 
billion uninsured children in the United States. The way the 
Republicans have structured the bill, the child health block grant, 
there is no guarantee that even one additional child will have health 
insurance coverage.
  The Medicaid cuts in this bill threaten children's hospitals and 
other safety net health care providers. Why would we target children's 
hospitals and county hospitals caring for the uninsured as a place to 
make an enormous spending cut to fund the tax breaks for the wealthy? 
Forcing public hospitals to close their doors will further reduce 
access to care, particularly for uninsured children. When we combine 
these changes with provisions in the bill to exempt even more health 
care plans from State consumer guidelines, we have a total package that 
weakens access to quality health care insurance for all Americans.
  The American people do not again want us moving backward on access to 
health care.
  Again, the Republican bill does not deliver on the promise of health 
insurance for uninsured children. Indeed, the Republican bill violates 
the goals of the budget agreement. On that basis alone we should reject 
the rule and kill the bill.
  Mr. MOAKLEY. Mr. Speaker, I yield 1 minute to the gentleman from 
Michigan [Mr. Levin].
  (Mr. LEVIN asked and was given permission to revise and extend his 
remarks.)
  Mr. LEVIN. Mr. Speaker, we are going to debate the tax bill tomorrow, 
and we will show how their bill on the majority side would blow a hole 
in the budget, and we will show how they are using phony figures. But 
today we are debating the spending resolution.
  I voted for the budget resolution. Trouble with this spending 
resolution is it violates the budget agreement, purely and simply. It 
does so on legal immigrants. It draws an irrational and inhumane line, 
contrary to what they agreed to. It also goes beyond the budget 
agreement, and it withdraws from people moving from welfare to work the 
protections of the Fair Labor Standards Act. All they put back is a 
minimum wage standard, but there is no Federal protection to be sure 
that that is paid, and they do not provide against sexual harassment 
and employment discrimination.
  Mr. Speaker, second class citizenship is not the answer for people 
moving from welfare to work.
  We ask the Committee on Rules to grant us amendments to cure these, 
they turned us down. We should turn down this budget resolution.
  Mr. SOLOMON. Mr. Speaker, I yield myself such time as I might 
consume.
  Mr. Speaker, I am somewhat confused. If my colleagues read this 
morning's paper or if they talk to those that attended a Democratic 
caucus, it is quite clear that the administration attended that 
Democratic caucus and is urging them to support this reconciliation 
bill that is before us today, that most of the problems that they had 
with, especially the OMB Director, Mr. Raines, had been worked out, 
there were some glitches, but they could be solved in conference.

                              {time}  1215

  So I am really surprised to hear some of the statements being brought 
up here today.
  Mr. BARTON of Texas. Mr. Speaker, will the gentleman yield?
  Mr. SOLOMON. I yield to the gentleman from Texas.
  Mr. BARTON of Texas. Mr. Speaker, I thank the gentleman from New York 
[Mr. Solomon], chairman of the Committee on Rules, for yielding.
  I think the chairman understands that a number of us, on a bipartisan 
basis for several years, have been trying to do something to put some 
enforcement mechanism into the existing Budget Acts that govern our 
Nation.
  We have a piece of legislation, H.R. 2003, the bipartisan Budget 
Enforcement Act, that is pending before the Committee on Rules, the 
Committee on Ways and Means, and the Committee on the Budget. There 
have been a series of meetings and discussions this morning.
  It is my understanding that as chairman of the Committee on Rules, 
the gentleman from New York [Mr. Solomon] has agreed to an expedited 
procedure whereas this piece of legislation, perhaps as amended, will 
be brought to the floor for an up or down vote no later than July 24.
  Is that the understanding of the chairman of the Committee on Rules?
  Mr. SOLOMON. Mr. Speaker, reclaiming my time, yes, it is my 
understanding, and that is an ad hoc agreement, which, after meeting 
with the gentleman from Texas [Mr. Barton] and members of the 
gentleman's group, along with Members of the Republican leadership, we 
have agreed that the three committees of jurisdiction, the Committee on 
Rules, the Committee on Ways and Means, and the Committee on the 
Budget, would have an opportunity to look at the legislation.
  Mr. BARTON of Texas. Mr. Speaker, the number is H.R. 2003, the 
bipartisan Budget Enforcement Act. The gentleman from Texas [Mr. 
Stenholm] and the gentleman from Minnesota [Mr. Minge] and the 
gentleman from Indiana [Mr. Visclosky] and several others.
  Mr. SOLOMON. Mr. Speaker, certainly the Committee on the Budget has 
agreed, and so has the Committee on Rules. Now the gentleman 
understands that the gentleman from Texas [Mr. Archer], who has 
jurisdiction as well, will agree as long as he has time to consider in 
his committee.
  I just want to make this understanding clear, that the agreement in 
no way prejudices the ability of the Committee on Rules and the 
Committee on the Budget who share jurisdiction over budget process to 
report a budget process reform bill on their own at a later time.
  Mr. BARTON of Texas. Mr. Speaker, that is my understanding. This does 
not fence off any other legislation on the same subject, but it does 
commit the chairman of the Committee on Rules, the Speaker of the 
House, the majority leader, the majority whip, and the chairmen of the 
committees of jurisdiction to work in an expeditious fashion to bring 
this particular bill, perhaps as amended, to the floor, and perhaps at 
the same time other bills that deal with the same subject.
  Mr. SOLOMON. Mr. Speaker, I think we are in full agreement. Let me 
just say to the gentleman I appreciate his understanding.
  As the gentleman knows, on the Republican side there were some 31 
Members that had concerns with both the tax bill and the spending cut 
bill. We had asked them not to come before us and ask for changes to be 
made because it would disrupt the agreement that we might have with the 
White House, and there were a number of Democrats on

[[Page H4390]]

the other side of the aisle requesting the same thing. We did not allow 
them, as we did not allow the gentleman.
  So the gentleman is being very reasonable and I appreciate it, and we 
are committed to bringing this to the floor by July 24.
  Mr. BARTON of Texas. Mr. Speaker, I want to express my commitment to 
the chairman of the Committee on Rules that I will vote for this rule 
and I will encourage all of the Republican Members who I have been 
discussing this issue with to also vote for the rule, so that we can 
bring this reconciliation package to the floor.
  Mr. SOLOMON. Mr. Speaker, I certainly thank the gentleman for being 
so reasonable.
  Mr. CASTLE. Mr. Speaker, will the gentleman yield?
  Mr. SOLOMON. I yield to the gentleman from Delaware.
  Mr. CASTLE. Mr. Speaker, I would just like to say that the leadership 
of the Republican Party in total was involved in this. I think that is 
very important to understand. They were very accommodating.
  It has always been agreed that if this were able to be passed on the 
floor of the House of Representatives, and by the way, there is no 
commitment to actually support this bill from any of the leadership, 
but if it did pass, it would become part of the House conference 
package in terms of dealing with the reconciliation bill with the 
Senate which I think is important as well.
  Mr. WAMP. Mr. Speaker, will the gentleman yield?
  Mr. SOLOMON. I yield to the gentleman from Tennessee.
  Mr. WAMP. Mr. Speaker, I commend all that have been involved in a 
very bipartisan way, and just for the people whom I think we so 
adequately represent here in this body across the country that are 
wondering maybe what this is all about, this is a group of a few 
Members on both sides of the aisle that have gotten together and said 
that the discipline needs to be integrated into this budget agreement. 
There is a panacea out there that this is a great thing, and I think it 
has the potential of being a great thing if we follow through on it, 
and if we do not allow certain predictions that are part of our 
assessment today that might not come true to blow the thing apart later 
on. That is what this is about, enforcement provisions.
  Frankly, neither party has an exclusive on ideas or integrity, and 
much of this comes from the Blue Dog Coalition on the other side and 
very accurately, they have assessed that we need some discipline 
written into this agreement, and many on our side, led by the gentleman 
from Texas [Mr. Barton] and the gentleman from Delaware [Mr. Castle] 
and myself, have agreed to this, and now our leadership is 
accommodating our request that we have an opportunity to bring to this 
floor the details of how we need to enforce this provision as we go 
forward.
  I think that is important for the people to know, and people who have 
suspicion about this budget agreement can know that we are working to 
improve it before we finally report it out.
  I thank the gentleman for yielding.
  Mr. SOLOMON. Mr. Speaker, I thank the gentleman for his comments.
  Mr. Speaker, I reserve the balance of my time.
  Mr. MOAKLEY. Mr. Speaker, I yield myself such time as I may consume.
  I would like to tell the gentleman from Texas [Mr. Barton] that we 
thought his amendment was a great one and we brought it forward for a 
vote, but we were outvoted. We have another chance, because if we 
defeat the previous question, we are going to put the Barton amendment 
in. So the gentleman still has a chance to get his amendment passed.
  Mr. Speaker, I yield 1 minute to the gentleman from Texas [Mr. 
Bentsen].
  (Mr. BENTSEN asked and was given permission to revise and extend his 
remarks.)
  Mr. BENTSEN. Mr. Speaker, I voted for this budget agreement and a 
number of Members from 13 of the 50 States voted for this budget 
agreement, but I do not think they voted to agree that their States 
would be cut disproportionately under the Medicaid program, under the 
Disproportionate Share Program that is in this bill.
  This bill before us today, the spending bill, will treat States like 
Texas, Colorado, Connecticut, Louisiana, Tennessee, that the gentleman 
just spoke from, and several others twice as badly as all the other 
States and 100 times as badly as some of the other States.
  This bill says that those 13 States will have their disproportionate 
share of funding cut by 40 percent by the year 2002. That is not the 
budget agreement that this Member voted for and I do not see how any 
Member from any of those States could vote for this rule.
  Now, if we defeat the previous question, included in the amendments 
that the gentleman from Massachusetts intends to offer is to correct 
this. We are not talking about dollars, we are talking about equity 
among the States.
  Mr. SOLOMON. Mr. Speaker, I yield 2\1/2\ minutes to the gentleman 
from Ohio [Mr. Kasich], the distinguished chairman of the Committee on 
the Budget.
  Mr. KASICH. Mr. Speaker, let me just suggest that everybody in the 
House is concerned about the formula whereby we help those hospitals 
that have a disproportionate share of poor people who they attend to. 
It is interesting to note that Texas is one of the largest recipients 
of DSH money and they have a concern about how this agreement is going 
to affect them, based on the formula that distributes this money.
  I have a concern about it not only as it applies to the State of 
Texas, but to the State of Ohio, to the State of New Jersey and the 
State of New York and every State in the country. Writing a formula 
that affects the DSH payments, the disproportionate share of payments, 
is going to be like, well, it will be a rougher fight than Tyson-
Holyfield this weekend.
  The fact is that in the conference committee we are going to have to 
create a new formula. We cannot write a formula on the House floor. We 
should not even try to write a formula on the House floor. We should 
not want to write a formula on the House floor.
  What we should do, if I could be so presumptuous to give this advice, 
is to indicate the fact that we do not have it right yet and that we 
should go to the conference committee and we ought to get it right, as 
right as we can. I can promise my colleagues, it is just like reform of 
the IRS or the tax system, at the end of the day, nobody is going to be 
happy with the way we pay taxes, and at the end of the day, no one is 
going to be happy with the way in which we distribute money to help 
hospitals pay for the poor. But what we do intend to do is to get it as 
right as human beings can, representing 50 States around the country.
  So the point is, I feel your pain when it comes to my colleagues' 
concern about DSH payments. So the fact is, let us not try to say that 
we are trying to shut somebody off or having a formula debate on the 
House floor. We cannot fix it here. It would not be right to fix it 
here. We would not get it right here and we would end up hurting poor 
people in the final analysis.
  So let us just stay cool, let us adopt the rule, let us make an 
effort to get the formula fixed in conference, and I am willing to work 
with all of the Members of the House to participate to come up with 
something that is as fair and equitable as we can among the 50 States.
  Mr. MOAKLEY. Mr. Speaker, I yield 1 minute to the gentleman from 
Indiana [Mr. Visclosky].
  Mr. VISCLOSKY. Mr. Speaker, I thank the gentleman for yielding me 
this time.
  Mr. Speaker, I rise today in strong opposition to the rule because it 
does not make in order an important bipartisan enforcement amendment 
proposed by our colleagues, the gentleman from Texas [Mr. Barton] and 
the gentleman from Minnesota [Mr. Minge]. The Barton-Minge takes a 
common sense approach to enforcing the budget reconciliation bill. It 
acknowledges that our best hope of actually balancing the budget is to 
put every section of the budget on the table, including entitlements 
and revenues, and that we must hold the President and the Congress 
accountable.
  Enforcement is important. The lessons of previous budget resolutions 
is that agreeing to a balanced budget does not guarantee it will be. No 
fewer than four times over the last 15 years Congress and Presidents 
have approved budget-balancing amendments, but they have not led to a 
balanced budget because they were not enforceable.

[[Page H4391]]

  We have been told repeatedly that enforcement mechanisms should be 
addressed. We have been told by the Committee on the Budget, 
enforcement should be addressed. We have been told by the Committee on 
Rules, enforcement should be addressed. It has not been addressed in 
this rule.
  Mr. Speaker, I rise today in strong opposition to the rule because it 
does not make in order an important bipartisan enforcement amendment 
proposed by our colleagues, Mr. Barton and Mr. Minge.
  The Barton-Minge amendment takes a common sense approach to enforcing 
the budget reconciliation bill. It acknowledges that our best hope of 
actually balancing the budget is to put every section of the budget on 
the table--including entitlements and revenues--and that we must hold 
the President and the Congress accountable if we do not live up to the 
budget targets agreed to earlier this month.
  While I voted for the budget resolution earlier this month, I did so 
with serious reservations. One of my most serious concerns is the lack 
of meaningful enforcement procedures to ensure that the budget is 
balanced as projected by the year 2002.
  The lesson of previous budget resolutions is that agreeing to balance 
the budget does not guarantee that the budget will actually be 
balanced. No fewer than four times over the past 15 years Congress has 
approved budget agreements that were supposed to get us to a balanced 
budget, but failed to actually do so.
  For example, in 1982, the budget resolution called for a balanced 
budget in 1984. Yet, the budget was not balanced by that date. In 1985, 
under Gramm-Rudman I, we were told that the budget would be balanced in 
1991. It was not.
  In 1987, under Gramm-Rudman II, we were told that the budget would be 
balanced in 1993, but it was not. In 1990, under the Budget Enforcement 
Act, we were told that, finally, the budget would be balanced in 1994. 
Again, it was not.
  The common thread in these failed attempts to balance the budget was 
the lack of a meaningful enforcement mechanism.
  I would also like to point out that enforcement is not a new or 
transitory issue. In the last two Congresses I sponsored important 
legislation designed to bring strong enforcement procedures to the 
budget process. This legislation, the Balanced Budget Enforcement Act, 
was originally introduced by then-chairman of the Budget Committee Leon 
Panetta and, after that, our former colleague from Minnesota, Tim 
Penny.
  I have appeared before both the Rules Committee and the Budget 
Committee asking that comprehensive enforcement mechanisms be included 
in the budget process. So far, however, no action has been taken by 
either committee.
  Leading up to consideration of the budget reconciliation bill, we 
were told that enforcement would be addressed as part of the 
legislation. Unfortunately, however, the Rules Committee did not make 
the Barton-Minge enforcement amendment in order, and we again find 
ourselves with a major budget bill that contains no serious enforcement 
language.
  Mr. Speaker, I am extremely disappointed that this rule does not make 
language on enforcement in order, and I urge my colleagues to oppose 
it.
  Mr. MOAKLEY. Mr. Speaker, I yield 2 minutes to the gentleman from 
Texas [Mr. Doggett].
  Mr. DOGGETT. Mr. Speaker, for those of us who are truly committed to 
achieving a balanced budget that will remain balanced, this first 
effort to implement the balanced budget agreement represents a true 
setback. They call this bill that we have under consideration today the 
reconciliation bill. Really, it is the wreckonciliation because it 
wrecks this budget agreement, and the first area in which it wrecks the 
budget agreement is by not having an adequate enforcement provision.
  Mr. Speaker, there is nothing new about promising a balanced budget 
in Washington. It is the guarantee of a balanced budget that really has 
some meaning, and around here a promise never seems to be a guarantee. 
We do not need more promises of a balanced budget, we need a guarantee, 
and we need it in this proposal. Rather than wrecking the budget 
agreement, we ought to be guaranteeing a truly balanced budget.
  What does this reconciliation bill say to the young American family 
that is out there struggling to make ends meet? Well, if we listen to 
the Republicans here in Washington, it says to that young American 
family, when you reach age 65, do not count on having any health 
protection because your Medicare coverage will not be there. We are 
going to escalate the age to 67 before you ever get Medicare coverage.

                              {time}  1230

  What does it say to the children of that working American family, not 
people on welfare, but where perhaps both parents are struggling to 
climb up that economic ladder? It says no health insurance.
  Surely this must be the only modern industrialized country in the 
world where we have 10 million children who have no health insurance, 
and no hope from this reconciliation bill that it is going to get any 
better, from zero to age 67. No guarantee, is the goal of this 
Republican Congress for health insurance coverage.
  It is time not to wreck the budget agreement, deny enforcement 
provisions, and deny the guarantee of health insurance that so many 
people need in their youngest age and in the oldest age. Vote ``no'' on 
this rule.
  Mr. MOAKLEY. Mr. Speaker, I yield 1 minute to the gentleman from 
Texas [Mr. Stenholm].
  Mr. STENHOLM. Mr. Speaker, I rise in strong opposition to this rule, 
because here we go again. Passage of a reconciliation bill that is 
projected to balance the budget by the year 2002 does not guarantee the 
budget will actually be balanced. Americans are tired of Congress and 
the President making unfulfilled promises about balancing our budget.
  Mr. Speaker, I appreciate the work the gentleman from Texas [Mr. 
Barton], the gentleman from Delaware [Mr. Castle], and the gentleman 
from Tennessee [Mr. Wamp] have done, but I am a great believer that a 
bird in the hand is worth two in the bush. Today is the time for us to 
deal with enforcement. I was sincerely disappointed that the Committee 
on Rules chose to report a rule that would not allow the House to 
consider the Barton-Minge balanced budget agreement.
  Our only request of the Committee on Rules is that we be given a fair 
shot to offer our proposal for an up or down vote. Members from the 
left and right oppose our amendment. Why not let it be considered at 
the appropriate time, when we have the best chance of getting it done?
  Whether Members support the balanced budget agreement and the 
reconciliation bill, which I do, I strongly encourage all Members who 
are committed to achieving a balanced budget to vote against the rule. 
If we do not deal with the matter today, it will not be dealt with.
  Mr. Speaker, I rise in strong opposition to this rule. I do so as one 
who supports the bipartisan budget agreement because this rule prevents 
consideration of an amendment that would ensure that this budget 
agreement lives up to all the promises being made by those of us who 
support the agreement. Joe Barton and David Minge submitted an 
amendment on behalf of a bipartisan group of more than two dozen 
members who believe that this budget agreement must include strong 
budget enforcement procedures to make this a credible balanced budget 
plan. Unfortunately, this rule does not make the Barton-Minge amendment 
in order.
  While passage of a reconciliation bill that is projected to achieve 
balance by 2002 is a significant accomplishment, I would remind my 
colleagues that history has taught us that passage of a reconciliation 
bill that is projected to balance the budget by 2002 does not guarantee 
that the budget will actually be balanced in 2002. We need only look to 
the experience of the 1990 budget summit to be reminded how quickly a 
balanced budget plan can fall off course. Americans are tired of 
unfulfilled promises about balancing our budget. The Barton-Minge 
amendment will prevent this budget from repeating the failed promises 
of past balanced budget plans by putting teeth in the budget agreement.
  The Barton-Minge enforcement amendment would establish a 
comprehensive enforcement mechanism that would require Congress and the 
President to ensure that actual spending and revenues over the next 5 
years meet the goals of the budget agreement. It would enforce all 
portions of the budget--spending and revenues--without exceptions to 
ensure that everyone has a stake in keeping the budget on a path to 
balance. Critics who complain about the harmful effects of triggering 
sequestration or delaying the phase-in of tax cuts are missing the 
point. The goal of any enforcement mechanism is to establish a hammer 
with severe consequences to give Congress and the President the 
incentive to take action immediately when the budget falls off the 
glidepath to balance to avoid triggering enforcement.

[[Page H4392]]

  The Barton-Minge amendment has bipartisan support because enforcement 
would be targeted to the portion of the budget that causes a problem. 
Spending programs that grow faster than this budget assumes would be 
sequestered; the phase-in of tax cuts would be delayed if revenues are 
lower than assumed under this budget. Tax cuts will not be affected 
because spending grows too fast; and spending will not be cut if taxes 
are below projections.
  I was sincerely disappointed that the Rules Committee chose to report 
a rule that would not allow the House to consider the Barton-Minge 
balanced budget enforcement amendment. Our only request was that we be 
given a fair shot to offer our proposal for an up or down vote. I 
understand that many committee chairman oppose this effort to enforce 
the budget agreement and that Members from the left and right have 
concerns that our amendment is too strong and would vote against it. I 
welcome the opportunity to respond to these criticisms and debate the 
issue on the merits. Unfortunately, this rule prevents us from having 
that debate.
  Whether or not you support the budget agreement and the 
reconciliation bill that the House will consider today, I strongly 
encourage all Members who are committed to actually achieving a 
balanced budget to vote against this rule so that the House may 
consider legislation that makes this balanced budget plan meaningful.
  Mr. MOAKLEY. Mr. Speaker, I yield 1 minute to the gentleman from 
Tennessee [Mr. Tanner].
  Mr. TANNER. Mr. Speaker, I want to second what the gentleman from 
Texas [Mr. Stenholm] and the gentleman from Indiana [Mr. Visclosky] 
said. I am not interested in being a party to a balanced budget 
agreement that does not translate itself from an idea to a reality.
  There have been well-intentioned people in this town since 1980 who 
have tried mightily to balance the budget. This enforcement mechanism 
that was denied a vote on by this body, by the Committee on Rules, 
itself I think warrants a ``no'' vote, because, Mr. Speaker, this is 
the mechanism that translates the idea of a balanced budget, which most 
of us embrace, to actual reality. Without it, we are, I think, going 
down the same path as those that were here before us. We cannot afford 
that path again.
  We are spending over $250 billion a year in interest now. The future 
is bleak, indeed, for the young people if we do not put an enforcement 
mechanism in this agreement. I wish we would vote ``no'' on the rule.
  Mr. MOAKLEY. Mr. Speaker, I yield 1 minute to the gentleman from 
Texas [Mr. Turner].
  Mr. TURNER. Mr. Speaker, I rise in opposition to the rule for the 
reason that the committee failed to acknowledge the importance of 
including enforcement language in this budget reconciliation bill. The 
truth of the matter is that the American people believe that when we, 
in great fanfare, just a few weeks ago announced a balanced budget 
agreement, they believe the balanced budget agreement is something that 
has meaning to it, not an empty promise.
  I think we in this Congress all need to tell the American people that 
a budget agreement resolution is no more than a New Year's resolution, 
and it is no more than a promise that can be broken without effective 
enforcement language put into the law.
  The bipartisan Barton-Minge budget enforcement amendment needs to be 
in the budget reconciliation bill that this Congress will adopt. A 
promise to consider it later is not enough. The American people expect 
and deserve that we in the Congress will keep our promises for a 
balanced budget by 2002.
  Mr. SOLOMON. Mr. Speaker, I yield such time as he may consume to the 
gentleman from Pennsylvania [Mr. English].
  (Mr. ENGLISH of Pennsylvania asked and was given permission to revise 
and extend his remarks.)
  Mr. ENGLISH of Pennsylvania. Mr. Speaker, I rise in support of the 
rule.
  Mr. Speaker, I rise in strong support of several reconciliation 
changes contained in the proposed manager's amendment that will be 
self-executed in this rule.
  The amendment contains an additional $1 billion in relief for low-
income seniors from the cost of their part B Medicare premiums. This 
change will further strengthen our bipartisan plan to save Medicare.
  the amendment also provides credible protections for participants in 
workfare programs. Specifically, it would strengthen minimum wage 
requirements, clarify the 40-hour work week, and adopt strong 
nondiscrimination provisions relating to age, race, gender, and 
disability. It also protects other workers with strong nondisplacement 
language.
  The amendment contains other improvements, especially its designation 
of $100 million to empower states and extend Medicaid benefits for 
children affected by Social Security eligibility changes. This is a 
useful and balanced amendment, and I urge adoption of the rule.
  Mr. MOAKLEY. Mr. Speaker, I yield 2 minutes to the gentleman from 
Mississippi [Mr. Taylor].
  Mr. TAYLOR of Mississippi. Mr. Speaker, I urge a no vote on the rule. 
There is a crisis of faith in this country. People every 2 years run 
for office and ask for the privilege to serve in Congress. They say 
they are going to do things, and when the time comes to do those 
things, they find a reason to see to it that they do not. All across 
the country people ran for Congress and said, we are going to restore 
the promise of lifetime health benefits to those people who served in 
our military honorably for 20, 25, 30 or more years.
  There are 181 people who cosponsored a bill to do just that, 
including the chairman of the Committee on Rules: the gentlewoman from 
Ohio [Ms. Pryce], the gentleman from Georgia [Mr. Linder], the 
gentleman from Florida [Mr. Diaz-Balart], the gentleman from Colorado 
[Mr. McInnis], and the gentleman from Washington [Mr. Hastings]. Yet, 
yesterday when the opportunity came before them to bring this measure 
to the House floor so we could restore that, so we could give the only 
people in America who were promised free health care for life, to 
fulfill that promise for them, those people voted against it.
  They will not give the majority the chance to vote for it, to take 
care of our military retirees, the same people who went to Korea, the 
people who went to Vietnam, the people who went to the desert, the 
people who are in Colombia today. They said, these people do not count.
  We ought to defeat this rule. We ought to vote ``no'' on the previous 
question, and we ought to allow the Hefley bill, which is cosponsored 
by 181 Members of Congress, to fulfill the promise of lifetime health 
care to our military retirees, to be voted on up-or-down, so we can see 
whether those people who went back home and said they were for our 
military retirees really are, or whether it was just another empty 
promise.
  Mr. Speaker, there is a crisis of faith in this country because 
people are not doing what they said they would do. We have a chance to 
correct that today, we really do.
  Mr. MOAKLEY. Mr. Speaker, I yield 1 minute to the gentlewoman from 
California [Mrs. Tauscher].
  Mrs. TAUSCHER. Mr. Speaker, I thank the gentleman for yielding time 
to me.
  Mr. Speaker, I rise in strong opposition to the rule. I object to the 
decision by the Committee on Rules to refuse to allow the Barton-Minge 
amendment, of which I am an original cosponsor, which would add strong 
budget enforcement language to the legislation. While I strongly 
support this historic budget agreement, I am concerned that without 
proper enforcement mechanisms, spending will run out of control and tax 
cuts will balloon, thereby voiding the balanced budget agreement.
  A bipartisan group of Members has developed a proposed amendment to 
ensure that, when actual spending exceeds spending targets, Congress 
would have to take action by December 15 or automatic cuts would go 
into effect. Similarly, if revenues failed to meet the expected level, 
any phase-in of tax cuts would be delayed.
  There have been numerous attempts to instill fiscal responsibility in 
the budget process, but those attempts have failed because they were 
unenforceable. Let us not allow this agreement to fall prey to the same 
shortcomings. I urge my colleagues to defeat the rule.
  Mr. MOAKLEY. Mr. Speaker, I yield 1 minute to the gentleman from New 
Jersey [Mr. Andrews].
  Mr. ANDREWS. Mr. Speaker, I thank the ranking member for yielding 
time to me.
  Mr. Speaker, I rise in opposition to the rule. I would say that there 
is no higher purpose for those who have been called to this House than 
to stop the

[[Page H4393]]

practice of borrowing money to run the U.S. Government and sending the 
bill to our children.
  I do not doubt for one minute the good intentions of those who put 
this budget agreement together, but I sure do doubt what might happen 
as a result of those intentions if we do not have the enforcement 
language of the Barton-Minge amendment.
  Here is what it says without it. If Congress spends more than we 
planned under this agreement, do Members know what happens? Nothing. If 
the Tax Code does not bring in as much money as we thought it would 
because of the tax cut, do Members know what happens? Nothing. Without 
this amendment the deficit will rise, the balanced budget will be in 
jeopardy, and we will continue the practice we all came here to stop.
  I urge my colleagues to oppose this rule, and when we get a chance 
vote for the Barton-Minge amendment when it comes to the floor.
  Mr. MOAKLEY. Mr. Speaker, I yield 1 minute to the gentleman from Ohio 
[Mr. Brown].
  Mr. BROWN of Ohio. Mr. Speaker, I thank the gentleman for yielding 
time to me.
  Mr. Speaker, I rise in opposition to the rule. As the ranking member 
on the Subcommittee on Health and the Environment of the Committee on 
Commerce, I, with my Democratic colleagues, offered several amendments 
to improve the Medicare-Medicaid and children's health care expansion 
provisions in the Budget Reconciliation Act.
  Most important, perhaps, of these would have reduced the number of 
Medicare MSA policies which could be issued from 500,000 to 100,000, 
thus saving approximately $1 billion over 5 years. These savings would 
be used to cover the copay for beneficiaries who will be covered for 
annual mammographies, bone mass testing, colorectal and prostate cancer 
screening, and a portion of the cost of test strips for diabetes under 
Medicare.
  Last week a similar bipartisan amendment was offered and passed 
bipartisanly in the Senate Finance Committee which would scale back the 
demonstration project to 100,000 policies. Unfortunately, Republicans 
on the Committee on Rules neglected to allow us to offer this 
amendment, even though we only lost it in committee by one vote. It was 
part of the budget agreement originally. It makes sense, Mr. Speaker.
  I urge my colleagues to oppose the rule when it comes before the 
House.
  Mr. MOAKLEY. Mr. Speaker, I yield 1 minute to the gentleman from 
Louisiana [Mr. John].
  Mr. JOHN. Mr. Speaker, I thank the gentleman from Massachusetts for 
yielding time to me.
  Mr. Speaker, I rise in strong opposition to the rule. What are we 
afraid of? Are we afraid of keeping our promises? That is what we are 
talking about. We are talking about enforcing a balanced budget 
agreement that only 2 weeks ago everybody was praising. Everybody was 
talking about how great it is. But it is only worth the paper it is 
written on without some kind of enforcement.
  What are the opponents of enforcement scared of? They are scared of 
keeping our promises? I would hope not. I would hope that the American 
people will support us in putting enforcement in a budget that could 
explode if we are off on some of our economic figures.
  Mr. SOLOMON. Mr. Speaker, I yield 30 seconds to the distinguished 
gentleman from Texas [Mr. Barton].
  Mr. BARTON of Texas. Mr. Speaker, I strongly appreciate the support 
that the Barton-Minge amendment has on both sides of the House, and I 
want to point out that under the colloquy agreement, we will get that 
vote on enforcement no later than July 24. If we win on the floor, it 
will be in the reconciliation package in the conference. So I would 
hope we would vote for the rule.
  Mr. MOAKLEY. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I cannot believe the gentleman from Texas would not vote 
against the previous question so he can get immediate recognition of 
this provision.
  Mr. Speaker, I yield 1 minute to the gentleman from Georgia [Mr. 
Lewis], the minority whip.
  Mr. LEWIS of Georgia. Mr. Speaker, I rise to urge my colleagues to 
defeat this rule. This bill that the Republicans are bringing to this 
floor breaks the budget deal the Republicans made with the President. 
On issue after issue this bill is in violation of the budget agreement.
  Mr. Speaker, how can the President negotiate if they will not deal in 
good faith, if they will not keep their word? On children's health 
care, this bill breaks the deal. On protecting disabled legal 
immigrants, the bill breaks the deal. On providing worker protection 
for people moving from welfare to work, this bill is not in keeping 
with the spirit of the deal.
  Mr. Speaker, this bill violates both the spirit and the letter of a 
balanced budget agreement. Defeat the rule, defeat the bill. It is not 
the deal made with the President. It is not the deal made with the 
American people.
  Mr. MOAKLEY. Mr. Speaker, I yield 1 minute to the gentleman from 
Florida [Mr. Boyd].

                              {time}  1245

  Mr. BOYD. Mr. Speaker, I thank the gentleman for yielding me the 
time.
  Mr. Speaker, I am a strong supporter of tax relief for American 
families that is fair and fiscally responsible. I am a strong supporter 
of the balanced budget agreement. I voted for that. I rise today in 
opposition to this rule because this bill that we are addressing today 
does not meet the criteria that is necessary to see that we have both 
of those things.
  I am deeply concerned that this reconciliation bill, as it is written 
without very important necessary enforcement language, that is, the 
Barton-Minge language that should have been included, will blow a hole 
in the deficit past the year 2002. Look back at history and exactly 
what happened with the other balanced budget plans that this U.S. 
Congress passed in the past.
  We worked too hard to get this far. We have a unique opportunity to 
get this budget balanced and establish an economic policy that will 
guarantee long-term balance for the U.S. Government.
  The tax cuts that we have in here, especially indexing of capital 
gains and the very long 10-year phase-in of estate taxes, is bad. I 
implore Members to vote against the rule.
  Mr. MOAKLEY. Mr. Speaker, I yield myself 2 minutes.
  Mr. Speaker, I urge Members to defeat the previous question. If that 
previous question is defeated, I will offer an amendment to the rule 
which will make in order 22 amendments, including the amendment by the 
gentlewomen from Florida, Mrs. Meek and Ms. Ros-Lehtinen that would 
preserve Social Security and Medicaid payments for elderly or disabled 
legal immigrants as amended by the gentleman from Mississippi, Mr. 
Taylor, which gives guaranteed health coverage to military retirees 
when they become Medicare eligible, an amendment by the gentleman from 
Texas, Mr. Barton, and the gentleman from Minnesota, Mr. Minge, which 
incorporates budget targets into the law and holds the President and 
the Congress accountable if the actual budget outcomes do not meet the 
budget agreement goals.
  Mr. Speaker, these are all very important amendments and the House 
should have an opportunity to consider them. I urge no on the previous 
question and defeat the rule.
  The SPEAKER pro tempore (Mr. Combest). The gentleman from 
Massachusetts [Mr. Moakley] has 3 minutes remaining.
  Mr. SOLOMON. Mr. Speaker, I yield 2 minutes to the very distinguished 
gentlewoman from Columbus, OH [Ms. Pryce], a member of the Committee on 
Rules.
  Ms. PRYCE of Ohio. Mr. Speaker, I thank the distinguished chairman of 
the Committee on Rules for yielding me the time.
  I rise in strong support of this rule and the reconciliation package 
and I am very encouraged by the compromise to address the enforcement 
issue.
  Mr. Speaker, even without that in this bill, boy, have we come a long 
way. Mr. Speaker, the growth in the 1980's showed us what can happen 
when we give the American people the tools that they need to grow and 
prosper. The same is true today. Government does not create new jobs. 
Government does not build stable families. Our challenge is to restore 
growth and opportunity and to sustain it for future

[[Page H4394]]

generations. This reconciliation package holds the beginning of an 
answer to that challenge. Nobody calls it perfect, but it is a start 
and it is sure about time.
  It combines budget restraint with progrowth tax policy. By preserving 
and strengthening Medicare, it honors our commitment to older 
Americans. By including a child tax credit and new savings incentives 
it will help families to keep more of their hard-earned money to spend 
on things they need most of their lives.
  This package is an honest bipartisan attempt to help those who will 
create tomorrow's growth and prosperity, the earners, the savers, the 
taxpayers who work hard; those people that get up earlier, stay at the 
office a little later, the ones that play by the rules, take a few 
risks and strive to build a better future for their families and 
communities.
  Mr. Speaker, after years of unbalanced budgets, deficit spending and 
high taxes, the chance to begin restoring the American dream is finally 
within our grasp. Let us seize it. Let us not miss this historic 
opportunity to give our children and grandchildren the bright economic 
future they deserve. I urge my colleagues to support this fair, this 
balanced rule and to vote for this reconciliation package.
  Mr. MOAKLEY. Mr. Speaker, I yield 1 minute and 10 seconds to the 
gentleman from Oklahoma [Mr. Coburn].
  Mr. COBURN. Mr. Speaker, I thank the gentleman from Massachusetts for 
yielding me this time.
  I think it is important for people in this country to know what this 
rule does. If you are poor and you are on Medicaid, this bill takes 
away the right of your physician to determine when you should be 
discharged from the hospital. We put that in in committee. We did that 
on purpose, because you have a right to have quality care and the 
profits of a health insurance industry should not come above that. This 
rule does not take it out of Medicare. We put it in Medicare, too.
  But AARP is such a strong force that we did not have the courage to 
take it out in the Medicare portion of this bill. So if you are poor, 
you are blown away. If you are protected by Medicare, you are protected 
for right now. When it gets to conference, your ability to have quality 
medical care determining your discharge based on what is best for your 
health is going to be eliminated in conference. That is the plan.
  So, America, wake up; this bill determines your health care and your 
quality not by your physician but by the insurance company that is 
running the managed care program.
  I thank the gentleman very much for yielding me the time.
  Mr. MOAKLEY. Mr. Speaker, will the gentleman yield?
  Mr. COBURN. I yield to the gentleman from Massachusetts.
  Mr. MOAKLEY. Mr. Speaker, is the gentleman opposed to the rule?
  Mr. COBURN. Mr. Speaker, I am not voting for this rule.
  Mr. MOAKLEY. Mr. Speaker, I thank the gentleman.
  Mr. Speaker, I yield the balance of my time to the gentlewoman from 
Connecticut [Ms. DeLauro].
  The SPEAKER pro tempore. The gentlewoman from Connecticut [Ms. 
DeLauro] is recognized for 2 minutes.
  Ms. DeLAURO. Mr. Speaker, I rise today to urge my colleagues to vote 
against this rule. This bill breaks the balanced budget agreement and 
it hurts average middle-class families in this country. I voted for the 
balanced budget agreement. This is not the bill that I voted for. I did 
not vote for a bill that hurts the middle class by denying working 
families help in providing health coverage for their kids. I did not 
vote for a bill that refuses to provide important basic worker 
protections in this country, protections like family and medical leave 
and protection against sexual harassment. I did not vote for a bill 
that hurts children's hospitals in my State. I did not vote for a bill 
that infringes on a woman's right to choose and I did not vote for a 
bill that does not promise to protect legal immigrants in this country.
  Today's Republican bill violates the budget agreement that was so 
carefully put together and so hard that we worked on. And it 
shortchanges middle-class American families so that tomorrow's 
Republican tax cut bill will be able to provide the richest 5 percent 
of Americans in this country with the biggest tax cuts in the bill. It 
is wrong. Working families are scrambling every single day, every day 
to pay their bills, to be able to send their kids to school, to protect 
themselves for a secure retirement and be able to have affordable 
health care coverage. The bill that we will vote for today will deny 
those protections to people. We should vote against this rule and 
tomorrow we should vote against the Republican tax cut bill. I urge a 
``no'' vote on the rule.
  Mr. MOAKLEY. Mr. Speaker, I include the following information for the 
Record:

   Text of Previous Question Amendment to H. Res. 174, FY 98 Budget 
                      Reconciliation and Tax Bills

       At the end of the resolution add the following new section:
       ``Section 3. Notwithstanding any other provision of this 
     resolution, it shall be in order without intervention of any 
     point of order to consider the following amendments:
       The amendment offered by Representative Ros-Lehtinen and 
     Representative Meek or their designee.
       The amendment offered by Representative Brown of Ohio or 
     his designee.
       The amendment offered by Representative Brown of Ohio or 
     his designee.
       The amendment offered by Representative Brown of Ohio or 
     his designee.
       The amendment offered by Representative Gekas and 
     Representative Frost or their designee.
       The amendment offered by Representative Barton and 
     Representative Minge, or their designee.
       The amendment offered by Representative Taylor of 
     Mississippi or his designee.
       The amendment offered by Representative Kennedy of 
     Massachusetts or his designee.
       The amendment offered by Representative McDermott and 
     Representative Matsui or their designee.
       The amendment offered by Representative McDermott or his 
     designee.
       The amendment offered by Representative Hinchey or his 
     designee.
       The amendment offered by Representative Peterson of 
     Minnesota or his designee.
       The amendment offered by Representative Nadler or his 
     designee.
       The amendment offered by Representative Nadler, 
     Representative Maloney, and Representative Schumer or their 
     designee.
       The amendment offered by Representative Levin or his 
     designee.
       The amendment offered by Representative Levin or his 
     designee.
       The amendment offered by Representative Levin or his 
     designee.
       The amendment offered by Representative Conyers or his 
     designee.
       The amendment offered by Representative Conyers or his 
     designee.
       The amendment offered by Representative Roukema and 
     Representative Pomeroy or their designee.
       The amendment offered by Representative Pallone or his 
     designee.
       The amendment offered by Representative Davis and 
     Representative Norton or their designee.
       The amendment offered by Representative Berman or his 
     designee.
       The amendment offered by Representative Thurman or his 
     designee.
       The amendment offered by Representative Becerra or his 
     designee.
       The amendment offered by Representative Eshoo and 
     Representative Pallone or their designee.
       The amendment offered by Representative Bentsen or his 
     designee.

         Amendments to H.R. 2014: Budget Reconciliation Tax Act

  Amendment Relating to Tax Reconciliation Provisions Offered by Mr. 
                        McDermott of Washington

       Add at the end of subtitle F of title IX the following new 
     section:

     SEC. 967. INCREASE OF STANDARD DEDUCTION FOR JOINT RETURNS TO 
                   END MARRIAGE PENALTY.

       (a) In General.--Paragraph (2) of section 63(c) (relating 
     to basic standard deduction) is amended to read as follows:
       ``(2) Basic standard deduction.--For purposes of paragraph 
     (1), the basic standard deduction is--
       ``(A) $8,500 in the case of--
       ``(i) a joint return, or
       ``(ii) a surviving spouse (as defined in section 2(a)),
       ``(B) $6,250 in the case of a head of household (as defined 
     in section 2(b)),
       ``(C) $4,250 in the case of an individual who is not 
     married and who is not a surviving spouse or head of 
     household, or
       ``(D) $4,250 in the case of a married individual filing a 
     separate return.''
       (b) Phasein of Increase.--Section 63(c) is amended by 
     adding at the end the following new paragraph:
       ``(7) 10-year phasein of Increase in Standard Deduction for 
     Joint Returns.--
       ``(A) In general.--In the case of any taxable year 
     beginning in a calendar year after 1997 and before 2007, the 
     basic standard deduction under paragraph (2)(A) (determined 
     after the application of paragraph (4)) shall not exceed the 
     sum of--
       ``(i) the base amount, and
       ``(ii) the applicable percentage of the excess of--

       ``(I) twice the amount in effect under paragraph (2)(C) 
     (determined after the application of paragraph (4)), over

[[Page H4395]]

       ``(II) the base amount.

       ``(B) Applicable percentage.--For purposes of this 
     paragraph, the term `applicable percentage' means the 
     percentage determined under the following table:

``For taxable years beginning in calendar year--         The applicable
                                                        percentage is--
  1998..........................................................10 ....

  1999..........................................................20 ....

  2000..........................................................30 ....

  2001..........................................................40 ....

  2002..........................................................50 ....

  2003..........................................................60 ....

  2004..........................................................70 ....

  2005..........................................................80 ....

  2006.......................................................90 .''....

       ``(C) Base amount.--For purposes of this paragraph, the 
     term `base amount' means, for any taxable year, the amount 
     which would apply for such year under paragraph (2)(A), as in 
     effect on the day before the date of the enactment of the 
     Revenue Reconciliation Act of 1997 (determined after the 
     application of paragraph (4), as so in effect).
       ``(D) Standard deduction for married individuals filing 
     separately.--In the case of any taxable year beginning in a 
     calendar year after 1997 and before 2007, the basic standard 
     deduction under paragraph (2)(D) (determined after the 
     application of paragraph (4)) shall not exceed one-half of 
     the amount in effect under paragraph (2)(A) for such taxable 
     year (determined after the application of this paragraph and 
     paragraph (4)).''
       (b) Inflation Adjustment.--Paragraph (4) of section 63(c) 
     is amended to read as follows:
       ``(4) Adjustments for inflation.--
       ``(A) Adjustment of basic standard deduction.--In the case 
     of any taxable year beginning in a calendar year after 1998, 
     each dollar amount contained in paragraph (2) shall be 
     increased by an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins by substituting `calendar year 1997' for 
     `calendar year 1992' in subparagraph (B) thereof.
       ``(B) Adjustment of other amounts.--In the case of any 
     taxable year beginning in a calendar year after 1988, each 
     dollar amount contained in paragraph (5)(A) or subsection (f) 
     shall be increased by an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins by substituting `calendar year 1987' for 
     `calendar year 1992' in subparagraph (B) thereof.''
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1997.

       Strike section 312, part II of subtitle B of title III, and 
     sections 403 and 1102 of the bill.

  Amendment to H.R.   , as Reported Offered by Mr. Hinchey of New York

       Strike section 403 (relating to repeal of adjustment for 
     depreciation under alternative minimum tax).
       Strike section 202(C) (relating to repeal of tax exemption 
     for remitted tuition provided to children of university 
     faculty and staff).
       Strike section 1055 (relating to repeal of tax exemption 
     for pensions provided by Teachers Insurance and Annuity 
     Association College Retirement Equity Fund).


               Amendment to the Reconciliation Provisions

              Reported by the Committee on Ways and Means

                  Offered by Mr. Peterson of Minnesota

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.

       (a) Short Title.--This Act may be cited as the ``Revenue 
     Reconciliation Act of 1997''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this Act an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.
       (c) Table of Contents.--

Sec. 1. Short title; amendment of 1986 Code.

   TITLE I--REDUCTION IN CAPITAL GAINS TAX FOR NONCORPORATE TAXPAYERS

Sec. 101. Reduction in capital gains tax for noncorporate taxpayers.
Sec. 102. One-time exclusion of gain on sale of principal residence 
              increased and allowable without regard to age of 
              taxpayer.

        TITLE II--INCREASE IN UNIFIED ESTATE AND GIFT TAX CREDIT

Sec. 201. Increase in unified estate and gift tax credit.
Sec. 202. Family-owned business exclusion.

                      TITLE III--CHILD TAX CREDIT

Sec. 301. Child tax credit.

               TITLE IV--INCENTIVES FOR HIGHER EDUCATION

Sec. 401. Credit for higher education expenses.
Sec. 402. Deduction for higher education expenses.

 TITLE V--EXTENSION AND MODIFICATION OF AIRPORT AND AIRWAY TRUST FUND 
                                 TAXES

Sec. 501. Extension and modification of Airport and Airway Trust Fund 
              taxes.

                  TITLE VI--ENFORCING REVENUE TARGETS

Sec. 601. Estimates of necessity to suspend revenue reductions.
Sec. 602. Suspension of child tax credit and increases in unified 
              estate and gift tax credit if revenue targets not met.
   TITLE I--REDUCTION IN CAPITAL GAINS TAX FOR NONCORPORATE TAXPAYERS

     SEC. 101. REDUCTION IN CAPITAL GAINS TAX FOR NONCORPORATE 
                   TAXPAYERS.

       (a) General Rule.--Part I of subchapter P of chapter 1 
     (relating to treatment of capital gains) is amended by adding 
     at the end thereof the following new section:

     ``SEC. 1203. REDUCTION IN CAPITAL GAINS TAX FOR NONCORPORATE 
                   TAXPAYERS.

       ``(a) In General.--If a taxpayer other than a corporation 
     has a net capital gain for any taxable year, there shall be 
     allowed as a deduction an amount equal to the sum of--
       ``(1) 50 percent of the qualified 5-year capital gain,
       ``(2) 40 percent of the qualified 4-year capital gain,
       ``(3) 30 percent of the qualified 3-year capital gain,
       ``(4) 20 percent of the qualified 2-year capital gain, plus
       ``(5) 10 percent of the net capital gain, reduced by the 
     sum of the amounts taken into account under the preceding 
     paragraphs.
       ``(b) Definitions.--For purposes of this section--
       ``(1) Qualified 5-year capital gain.--The term `qualified 
     5-year capital gain' means the lesser of--
       ``(A) the amount of long-term capital gain which would be 
     computed for the taxable year if only gain from the sale or 
     exchange of property held by the taxpayer for more than 5 
     years were taken into account, or
       ``(B) the net capital gain.
       ``(2) Qualified 4-year capital gain.--The term `qualified 
     4-year capital gain' means the lesser of--
       ``(A) the amount of long-term capital gain which would be 
     computed for the taxable year if only gain from the sale or 
     exchange of property held by the taxpayer for more than 4 
     years but not more than 5 years were taken into account, or
       ``(B) the net capital gain reduced by the qualified 5-year 
     capital gain.
       ``(3) Qualified 3-year capital gain.--The term `qualified 
     3-year capital gain' means the lesser of--
       ``(A) the amount of long-term capital gain which would be 
     computed for the taxable year if only gain from the sale or 
     exchange of property held by the taxpayer for more than 3 
     years but not more than 4 years were taken into account, or
       ``(B) the net capital gain reduced by the qualified 5-year 
     capital gain and the qualified 4-year gain.
       ``(4) Qualified 2-year capital gain.--The term `qualified 
     2-year capital gain' means the lesser of--
       ``(A) the amount of long-term capital gain which would be 
     computed for the taxable year if only gain from the sale or 
     exchange of property held by the taxpayer for more than 2 
     years but not more than 3 years were taken into account, or
       ``(B) the net capital gain reduced by the qualified 5-year 
     capital gain, the qualified 4-year capital gain, and the 
     qualified 3-year capital gain.
       ``(c) Estates and Trusts.--In the case of an estate or 
     trust, the deduction under this section shall be computed by 
     excluding the portion (if any) of the gains for the taxable 
     year from sales or exchanges of capital assets which, under 
     sections 652 and 662 (relating to inclusions of amounts in 
     gross income of beneficiaries of trusts), is includible by 
     the income beneficiaries as gain derived from the sale or 
     exchange of capital assets.
       ``(d) Special Rules for Collectibles.--
       ``(1) In general.--Solely for purposes of this section, any 
     gain or loss from the sale or exchange of a collectible shall 
     be treated as a short-term capital gain or loss (as the case 
     may be), without regard to the period such asset was held. 
     The preceding sentence shall apply only to the extent the 
     gain or loss is taken into account in computing taxable 
     income.
       ``(2) Treatment of certain sales of interest in 
     partnership, etc.--For purposes of paragraph (1), any gain 
     from the sale or exchange of an interest in a partnership, S 
     corporation, or trust which is attributable to unrealized 
     appreciation in the value of collectibles held by such entity 
     shall be treated as gain from the sale or exchange of a 
     collectible. Rules similar to the rules of section 751(f) 
     shall apply for purposes of the preceding sentence.
       ``(3) Collectible.--For purposes of this subsection, the 
     term `collectible means any capital asset which is a 
     collectible (as defined in section 408(m) without regard to 
     paragraph (3) thereof).
       ``(e) Transition Rules.--
       ``(1) Gain must be for periods on or after may 6, 1997.--
     Gain may be taken into account under subsection (a) only if 
     such gain is properly taken into account on or after May 6, 
     1997.
       ``(2) Special rule for pass-thru entities.--
       ``(A) In general.--In applying this subsection with respect 
     to any pass-thru entity, the determination of when gain is 
     properly taken into account shall be made at the entity 
     level.

[[Page H4396]]

       ``(B) Pass-thru entity defined.--For purposes of 
     subparagraph (A), the term `pass-thru entity' means--
       ``(i) a regulated investment company,
       ``(ii) a real estate investment trust,
       ``(iii) an S corporation,
       ``(iv) a partnership,
       ``(v) an estate or trust, and
       ``(vi) a common trust fund.
       ``(f) Treatment of Recapture of Net Ordinary Loss Under 
     Section 1231.--For purposes of this section, if any amount is 
     treated as ordinary income under section 1231(c) for any 
     taxable year--
       ``(1) the amount so treated shall be allocated 
     proportionately among the section 1231 gains (as defined in 
     section 1231(a)) for such taxable year, and
       ``(2) the amount so allocated to any such gain shall reduce 
     the amount of such gain.''
       (b) Treatment of Certain Pass-Thru Entities.--
       (1) Capital gain dividends of regulated investment 
     companies.--
       (A) Subparagraph (B) of section 852(b)(3) is amended to 
     read as follows:
       ``(B) Treatment of capital gain dividends by 
     shareholders.--A capital gain dividend shall be treated by 
     the shareholders as gain from the sale or exchange of a 
     capital asset held for more than 1 year but not more than 2 
     years; except that--
       ``(i) the portion of any such dividend designated by the 
     company as allocable to qualified 5-year capital gain of the 
     company shall be treated as gain from the sale or exchange of 
     a capital asset held for more than 5 years,
       ``(ii) the portion of any such dividend designated by the 
     company as allocable to qualified 4-year capital gain of the 
     company shall be treated as gain from the sale or exchange of 
     a capital asset held for more than 4 years but not more than 
     5 years,
       ``(iii) the portion of any such dividend designated by the 
     company as allocable to qualified 3-year capital gain of the 
     company shall be treated as gain from the sale or exchange of 
     a capital asset held for more than 3 years but not more than 
     4 years, and
       ``(iv) the portion of any such dividend designated by the 
     company as allocable to qualified 2-year capital gain of the 
     company shall be treated as gain from the sale or exchange of 
     a capital asset held for more than 2 years but not more than 
     3 years.

     Rules similar to the rules of subparagraph (C) shall apply to 
     any designation under this subparagraph.''
       (B) Clause (i) of section 851(b)(3)(D) is amended by adding 
     at the end thereof the following new sentence: ``Rules 
     similar to the rules of subparagraph (B) shall apply in 
     determining character of the amount to be so included by any 
     such shareholder.''
       (2) Capital gain dividends of real estate investment 
     trusts.--Subparagraph (B) of section 857(b)(3) is amended to 
     read as follows:
       ``(B) Treatment of capital gain dividends by 
     shareholders.--A capital gain dividend shall be treated by 
     the shareholders or holders of beneficial interests as gain 
     from the sale or exchange of a capital asset held for more 
     than 1 year but not more than 2 years; except that--
       ``(i) the portion of any such dividend designated by the 
     real estate investment trust as allocable to qualified 5-year 
     capital gain of the trust shall be treated as gain from the 
     sale or exchange of a capital asset held for more than 5 
     years,
       ``(ii) the portion of any such dividend designated by the 
     trust as allocable to qualified 4-year capital gain of the 
     trust shall be treated as gain from the sale or exchange of a 
     capital asset held for more than 4 years but not more than 5 
     years,
       ``(iii) the portion of any such dividend designated by the 
     trust as allocable to qualified 3-year capital gain of the 
     trust shall be treated as gain from the sale or exchange of a 
     capital asset held for more than 3 years but not more than 4 
     years, and
       ``(iv) the portion of any such dividend designated by the 
     trust as allocable to qualified 2-year capital gain of the 
     trust shall be treated as gain from the sale or exchange of a 
     capital asset held for more than 2 years but not more than 3 
     years.

     Rules similar to the rules of subparagraph (C) shall apply to 
     any designation under this subparagraph.''
       (3) Common trust funds.--Subsection (c) of section 584 is 
     amended--
       (A) by inserting ``not more than 2 years'' after ``1 year'' 
     each place it appears in paragraph (2),
       (B) by striking ``and'' at the end of paragraph (2), and
       (C) by redesignating paragraph (3) as paragraph (7) and 
     inserting after paragraph (2) the following new paragraphs:
       ``(3) as part of its gains and losses from sales or 
     exchanges of capital assets held for more than 2 years but 
     less than 3 years, its proportionate share of the gains and 
     losses of the common trust fund from sales or exchanges of 
     capital assets held for more than 2 years but not more than 3 
     years,
       ``(4) as part of its gains and losses from sales or 
     exchanges of capital assets held for more than 3 years but 
     less than 4 years, its proportionate share of the gains and 
     losses of the common trust fund from sales or exchanges of 
     capital assets held for more than 3 years but not more than 4 
     years,
       ``(5) as part of its gains and losses from sales or 
     exchanges of capital assets held for more than 4 years but 
     less than 5 years, its proportionate share of the gains and 
     losses of the common trust fund from sales or exchanges of 
     capital assets held for more than 4 years but not more than 5 
     years,
       ``(6) as part of its gains and losses from sales or 
     exchanges of capital assets held for more than 5 years, its 
     proportionate share of the gains and losses of the common 
     trust fund from sales or exchanges of capital assets held for 
     more than 5 years, and''.
       (c) Repeal of Maximum Rate of Tax on Capital Gains.--
     Section 1 is amended by striking subsection (h).
       (d) Conforming Amendments.--
       (1) Section 62(a) is amended by inserting after paragraph 
     (18) the following new paragraph:
       ``(19) Capital gains deduction.--The deduction allowed by 
     section 1203.''
       (2) Clause (ii) of section 163(d)(4)(B) is amended by 
     inserting ``, reduced by the amount of any deduction 
     allowable under section 1203 attributable to gain from such 
     property'' after ``investment''.
       (3) Section 170(e)(1)(B) is amended by inserting ``(or, in 
     the case of a taxpayer other than a corporation, the 
     percentage of such gain equal to 100 percent minus the 
     percentage applicable to of such gain under section 
     1203(a))'' after ``the amount of gain''.
       (4)(A) Section 172(d)(2) (relating to modifications with 
     respect to net operating loss deduction) is amended to read 
     as follows:
       ``(2) Capital gains and losses of taxpayers other than 
     corporations.--In the case of a taxpayer other than a 
     corporation--
       ``(A) the amount deductible on account of losses from sales 
     or exchanges of capital assets shall not exceed the amount 
     includible on account of gains from sales or exchanges of 
     capital assets; and
       ``(B) the deduction provided by section 1203 shall not be 
     allowed.''
       (B) Subparagraph (B) of section 172(d)(4) is amended by 
     inserting ``, (2)(B),'' after ``paragraph (1)''.
       (5)(A) Section 221 (relating to cross reference) is amended 
     to read as follows:

     ``SEC. 221. CROSS REFERENCES.

  ``(1) For deduction for net capital gains in the case of a taxpayer 
other than a corporation, see section 1203.
  ``(2) For deductions in respect of a decedent, see section 691.''
       (B) The table of sections for part VII of subchapter B of 
     chapter 1 is amended by striking ``reference'' in the item 
     relating to section 221 and inserting ``references''.
       (6) Paragraph (4) of section 642(c) is amended to read as 
     follows:
       ``(4) Adjustments.--To the extent that the amount otherwise 
     allowable as a deduction under this subsection consists of 
     gain from the sale or exchange of capital assets held for 
     more than 1 year, proper adjustment shall be made for any 
     deduction allowable to the estate or trust under section 1203 
     (relating to deduction for net capital gain). In the case of 
     a trust, the deduction allowed by this subsection shall be 
     subject to section 681 (relating to unrelated business 
     income).''
       (7) Paragraph (3) of section 643(a) is amended by adding at 
     the end thereof the following new sentence: ``The deduction 
     under section 1203 (relating to deduction for net capital 
     gain) shall not be taken into account.''
       (8) Paragraph (4) of section 691(c) is amended by striking 
     ``1201, and 1211'' and inserting ``1201, 1203, and 1211''.
       (9) The second sentence of paragraph (2) of section 871(a) 
     is amended by inserting ``such gains and losses shall be 
     determined without regard to section 1203 (relating to 
     deduction for net capital gain) and'' after ``except that''.
       (10) Section 1402(i)(1) is amended to read as follows:
       ``(1) In general.--In determining the net earnings from 
     self-employment of any options dealer or commodities dealer--
       ``(A) notwithstanding subsection (a)(3)(A), there shall not 
     be excluded any gain or loss (in the normal course of the 
     taxpayer's activity of dealing in or trading section 1256 
     contracts) from section 1256 contracts or property related to 
     such contracts, and
       ``(B) the deduction provided by section 1203 shall not 
     apply.''
       (11)(A) Subparagraph (A) of section 7518(g)(6) is amended 
     by striking the last sentence and inserting the following: 
     ``With respect to any portion of any nonqualified withdrawal 
     made out of the capital gain account during any taxable year, 
     the rate of tax taken into account under the preceding 
     sentence in the case of a taxpayer other than a corporation 
     shall not exceed 19.8 percent (or, in the case of a 
     corporation, 35 percent).''
       (B) Subparagraph (A) of section 607(h)(6) of the Merchant 
     Marine Act, 1936, is amended by striking the last sentence 
     and inserting the following: ``With respect to any portion of 
     any nonqualified withdrawal made out of the capital gain 
     account during any taxable year, the rate of tax taken into 
     account under the preceding sentence in the case of a 
     taxpayer other than a corporation shall not exceed 19.8 
     percent (or, in the case of a corporation, 35 percent).''
       (e) Clerical Amendment.--The table of sections for part I 
     of subchapter P of chapter 1 is amended by adding at the end 
     thereof the following new item:

``Sec. 1203. Reduction in capital gains tax for noncorporate 
              taxpayers.''

       (f) Effective Dates.--The amendments made by this section 
     shall apply to taxable years ending after May 6, 1997.

[[Page H4397]]

     SEC. 102. ONE-TIME EXCLUSION OF GAIN ON SALE OF PRINCIPAL 
                   RESIDENCE INCREASED AND ALLOWABLE WITHOUT 
                   REGARD TO AGE OF TAXPAYER.

       (a) Exclusion Allowable Without Regard to Age of 
     Taxpayer.--The section heading and subsection (a) of section 
     121 are amended to read as follows:

     ``SEC. 121. ONE-TIME EXCLUSION OF GAIN FROM SALE OF PRINCIPAL 
                   RESIDENCE BY INDIVIDUAL.

       ``(a) General Rule.--At the election of the taxpayer, gross 
     income does not include gain from the sale or exchange of 
     property if, during the 5-year period ending on the date of 
     the sale or exchange, such property has been owned and used 
     by the taxpayer as the taxpayer's principal residence for 
     periods aggregating 3 years or more.''
       (b) Increase in Limitation.--
       (1) In general.--Paragraph (1) of section 121(b) is amended 
     by striking ``$125,000 ($62,500'' and inserting ``$250,000 
     ($125,000''.
       (2) Additional election permitted.--Paragraph (3) of 
     section 121(b) is amended to read as follows:
       ``(3) Additional election if prior sale was made before 
     january 1, 1998.--In the case of any sale or exchange on or 
     after January 1, 1998, this section shall be applied by not 
     taking into account any election made with respect to a sale 
     or exchange before such date; except that the dollar 
     limitation applicable under paragraph (1) shall be reduced by 
     the aggregate amount excluded under this section on all prior 
     sales and exchanges of the taxpayer.''
       (c) Conforming Amendments.--
       (1) Paragraph (1) of section 121(d) is amended by striking 
     ``age, holding, and use'' each place it appears and inserting 
     ``holding and use''.
       (2) Paragraphs (2), (3), and (9) of section 121(d) are each 
     amended by striking ``subsection (a)(2)'' each place it 
     appears and inserting ``subsection (a)''.
       (3) Sections 1033(k)(3), 1034(l), 1038(e)(1)(A), 
     1250(d)(7)(B), and 6012(c) are each amended by striking ``who 
     has attained age 55''.
       (4) The table of sections for part III of subchapter B of 
     chapter 1 is amended by striking the item relating to section 
     121 and inserting the following:

``Sec. 121. One-time exclusion of gain from sale of principal residence 
              by individual.''

       (d) Effective Date.--The amendments made by this section 
     shall apply to sales and exchanges after December 31, 1997.
        TITLE II--INCREASE IN UNIFIED ESTATE AND GIFT TAX CREDIT

     SEC. 201. INCREASE IN UNIFIED ESTATE AND GIFT TAX CREDIT.

       (a) Estate Tax Credit.--
       (1) Subsection (a) of section 2010 (relating to unified 
     credit against estate tax) is amended by striking 
     ``$192,800'' and inserting ``the applicable credit amount''.
       (2) Section 2010 is amended by redesignating subsection (c) 
     as subsection (d) and by inserting after subsection (b) the 
     following new subsection:
       ``(c) Applicable Credit Amount.--For purposes of this 
     section, the applicable credit amount is the amount of the 
     tentative tax which would be determined under the rate 
     schedule set forth in section 2001(c) if the amount with 
     respect to which such tentative tax is to be computed were 
     the applicable exclusion amount determined in accordance with 
     the following table:

``In the case of estates of decedents dying,             The applicable
  and gifts made,                                             exclusion
  during:                                                    amount is:
      1998...................................................$ 700,000 
      1999...................................................$ 800,000 
      2000...................................................$ 850,000 
      2001...................................................$ 900,000 
      2002..................................................$1,000,000 
      2003..................................................$1,100,000 
      2004 or thereafter..................................$1,200,000.''

       (b) Unified Gift Tax Credit.--Paragraph (1) of section 
     2505(a) is amended by striking ``$192,800'' and inserting 
     ``the applicable credit amount under section 2010(c)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to the estates of decedents dying, and gifts 
     made, after December 31, 1997.

     SEC. 202. FAMILY-OWNED BUSINESS EXCLUSION.

       (a) In General.--Part III of subchapter A of chapter 11 
     (relating to gross estate) is amended by inserting after 
     section 2033 the following new section:

     ``SEC. 2033A. FAMILY-OWNED BUSINESS EXCLUSION.

       ``(a) In General.--In the case of an estate of a decedent 
     to which this section applies, the value of the gross estate 
     shall not include the lesser of--
       ``(1) the adjusted value of the qualified family-owned 
     business interests of the decedent otherwise includible in 
     the estate, or
       ``(2) $1,000,000.
       ``(b) Estates to Which Section Applies.--
       ``(1) In general.--This section shall apply to an estate 
     if--
       ``(A) the decedent was (at the date of the decedent's 
     death) a citizen or resident of the United States,
       ``(B) the sum of--
       ``(i) the adjusted value of the qualified family-owned 
     business interests described in paragraph (2), plus
       ``(ii) the amount of the gifts of such interests determined 
     under paragraph (3),

     exceeds 50 percent of the adjusted gross estate, and
       ``(C) during the 8-year period ending on the date of the 
     decedent's death there have been periods aggregating 5 years 
     or more during which--
       ``(i) such interests were owned by the decedent or a member 
     of the decedent's family, and
       ``(ii) there was material participation (within the meaning 
     of section 2032A(e)(6)) by the decedent or a member of the 
     decedent's family in the operation of the business to which 
     such interests relate.
       ``(2) Includible qualified family-owned business 
     interests.--The qualified family-owned business interests 
     described in this paragraph are the interests which--
       ``(A) are included in determining the value of the gross 
     estate (without regard to this section), and
       ``(B) are acquired by any qualified heir from, or passed to 
     any qualified heir from, the decedent (within the meaning of 
     section 2032A(e)(9)).
       ``(3) Includible gifts of interests.--The amount of the 
     gifts of qualified family-owned business interests determined 
     under this paragraph is the excess of--
       ``(A) the sum of--
       ``(i) the amount of such gifts from the decedent to members 
     of the decedent's family taken into account under subsection 
     2001(b)(1)(B), plus
       ``(ii) the amount of such gifts otherwise excluded under 
     section 2503(b),

     to the extent such interests are continuously held by members 
     of such family (other than the decedent's spouse) between the 
     date of the gift and the date of the decedent's death, over
       ``(B) the amount of such gifts from the decedent to members 
     of the decedent's family otherwise included in the gross 
     estate.
       ``(c) Adjusted Gross Estate.--For purposes of this section, 
     the term `adjusted gross estate' means the value of the gross 
     estate (determined without regard to this section)--
       ``(1) reduced by any amount deductible under paragraph (3) 
     or (4) of section 2053(a), and
       ``(2) increased by the excess of--
       ``(A) the sum of--
       ``(i) the amount of gifts determined under subsection 
     (b)(3), plus
       ``(ii) the amount (if more than de minimis) of other 
     transfers from the decedent to the decedent's spouse (at the 
     time of the transfer) within 10 years of the date of the 
     decedent's death, plus
       ``(iii) the amount of other gifts (not included under 
     clause (i) or (ii)) from the decedent within 3 years of such 
     date, other than gifts to members of the decedent's family 
     otherwise excluded under section 2503(b), over
       ``(B) the sum of the amounts described in clauses (i), 
     (ii), and (iii) of subparagraph (A) which are otherwise 
     includible in the gross estate.

     For purposes of the preceding sentence, the Secretary may 
     provide that de minimis gifts to persons other than members 
     of the decedent's family shall not be taken into account.
       ``(d) Adjusted Value of the Qualified Family-Owned Business 
     Interests.--For purposes of this section, the adjusted value 
     of any qualified family-owned business interest is the value 
     of such interest for purposes of this chapter (determined 
     without regard to this section), reduced by the excess of--
       ``(1) any amount deductible under paragraph (3) or (4) of 
     section 2053(a), over
       ``(2) the sum of--
       ``(A) any indebtedness on any qualified residence of the 
     decedent the interest on which is deductible under section 
     163(h)(3), plus
       ``(B) any indebtedness to the extent the taxpayer 
     establishes that the proceeds of such indebtedness were used 
     for the payment of educational and medical expenses of the 
     decedent, the decedent's spouse, or the decedent's dependents 
     (within the meaning of section 152), plus
       ``(C) any indebtedness not described in clause (i) or (ii), 
     to the extent such indebtedness does not exceed $10,000.
       ``(e) Qualified Family-Owned Business Interest.--
       ``(1) In general.--For purposes of this section, the term 
     `qualified family-owned business interest' means--
       ``(A) an interest as a proprietor in a trade or business 
     carried on as a proprietorship, or
       ``(B) an interest in an entity carrying on a trade or 
     business, if--
       ``(i) at least--

       ``(I) 50 percent of such entity is owned (directly or 
     indirectly) by the decedent and members of the decedent's 
     family,
       ``(II) 70 percent of such entity is so owned by members of 
     2 families, or
       ``(III) 90 percent of such entity is so owned by members of 
     3 families, and

       ``(ii) for purposes of subclause (II) or (III) of clause 
     (i), at least 30 percent of such entity is so owned by the 
     decedent and members of the decedent's family.
       ``(2) Limitation.--Such term shall not include--
       ``(A) any interest in a trade or business the principal 
     place of business of which is not located in the United 
     States,
       ``(B) any interest in an entity, if the stock or debt of 
     such entity or a controlled group (as defined in section 
     267(f)(1)) of which such

[[Page H4398]]

     entity was a member was readily tradable on an established 
     securities market or secondary market (as defined by the 
     Secretary) at any time within 3 years of the date of the 
     decedent's death,
       ``(C) any interest in a trade or business not described in 
     section 542(c)(2), if more than 35 percent of the adjusted 
     ordinary gross income of such trade or business for the 
     taxable year which includes the date of the decedent's death 
     would qualify as personal holding company income (as defined 
     in section 543(a)),
       ``(D) that portion of an interest in a trade or business 
     that is attributable to--
       ``(i) cash or marketable securities, or both, in excess of 
     the reasonably expected day-to-day working capital needs of 
     such trade or business, and
       ``(ii) any other assets of the trade or business (other 
     than assets used in the active conduct of a trade or business 
     described in section 542(c)(2)), the income of which is 
     described in section 543(a) or in subparagraph (B), (C), (D), 
     or (E) of section 954(c)(1) (determined by substituting 
     `trade or business' for `controlled foreign corporation').
       ``(3) Rules regarding ownership.--
       ``(A) Ownership of entities.--For purposes of paragraph 
     (1)(B)--
       ``(i) Corporations.--Ownership of a corporation shall be 
     determined by the holding of stock possessing the appropriate 
     percentage of the total combined voting power of all classes 
     of stock entitled to vote and the appropriate percentage of 
     the total value of shares of all classes of stock.
       ``(ii) Partnerships.--Ownership of a partnership shall be 
     determined by the owning of the appropriate percentage of the 
     capital interest in such partnership.
       ``(B) Ownership of tiered entities.--For purposes of this 
     section, if by reason of holding an interest in a trade or 
     business, a decedent, any member of the decedent's family, 
     any qualified heir, or any member of any qualified heir's 
     family is treated as holding an interest in any other trade 
     or business--
       ``(i) such ownership interest in the other trade or 
     business shall be disregarded in determining if the ownership 
     interest in the first trade or business is a qualified 
     family-owned business interest, and
       ``(ii) this section shall be applied separately in 
     determining if such interest in any other trade or business 
     is a qualified family-owned business interest.
       ``(C) Individual ownership rules.--For purposes of this 
     section, an interest owned, directly or indirectly, by or for 
     an entity described in paragraph (1)(B) shall be considered 
     as being owned proportionately by or for the entity's 
     shareholders, partners, or beneficiaries. A person shall be 
     treated as a beneficiary of any trust only if such person has 
     a present interest in such trust.
       ``(f) Tax Treatment of Failure To Materially Participate in 
     Business or Dispositions of Interests.--
       ``(1) In general.--There is imposed an additional estate 
     tax if, within 10 years after the date of the decedent's 
     death and before the date of the qualified heir's death--
       ``(A) the material participation requirements described in 
     section 2032A(c)(6)(B) are not met with respect to the 
     qualified family-owned business interest which was acquired 
     (or passed) from the decedent,
       ``(B) the qualified heir disposes of any portion of a 
     qualified family-owned business interest (other than by a 
     disposition to a member of the qualified heir's family or 
     through a qualified conservation contribution under section 
     170(h)),
       ``(C) the qualified heir loses United States citizenship 
     (within the meaning of section 877) or with respect to whom 
     an event described in subparagraph (A) or (B) of section 
     877(e)(1) occurs, and such heir does not comply with the 
     requirements of subsection (g), or
       ``(D) the principal place of business of a trade or 
     business of the qualified family-owned business interest 
     ceases to be located in the United States.
       ``(2) Additional estate tax.--
       ``(A) In general.--The amount of the additional estate tax 
     imposed by paragraph (1) shall be equal to--
       ``(i) the applicable percentage of the adjusted tax 
     difference attributable to the qualified family-owned 
     business interest (as determined under rules similar to the 
     rules of section 2032A(c)(2)(B)), plus
       ``(ii) interest on the amount determined under clause (i) 
     at the underpayment rate established under section 6621 for 
     the period beginning on the date the estate tax liability was 
     due under this chapter and ending on the date such additional 
     estate tax is due.
       ``(B) Applicable percentage.--For purposes of this 
     paragraph, the applicable percentage shall be determined 
     under the following table:

``If the event
  described in
  paragraph (1)
  occurs in the
  following year                                         The applicable
  of material                                                percentage
  participation                                                     is:
  1 through 6..................................................100 ....

  7.............................................................80 ....

  8.............................................................60 ....

  9.............................................................40 ....

  10............................................................20.....

       ``(g) Security Requirements for Noncitizen Qualified 
     Heirs.--
       ``(1) In general.--Except upon the application of 
     subparagraph (F) or (M) of subsection (h)(3), if a qualified 
     heir is not a citizen of the United States, any interest 
     under this section passing to or acquired by such heir 
     (including any interest held by such heir at a time described 
     in subsection (f)(1)(C)) shall be treated as a qualified 
     family-owned business interest only if the interest passes or 
     is acquired (or is held) in a qualified trust.
       ``(2) Qualified trust.--The term `qualified trust' means a 
     trust--
       ``(A) which is organized under, and governed by, the laws 
     of the United States or a State, and
       ``(B) except as otherwise provided in regulations, with 
     respect to which the trust instrument requires that at least 
     1 trustee of the trust be an individual citizen of the United 
     States or a domestic corporation.
       ``(h) Other Definitions and Applicable Rules.--For purposes 
     of this section--
       ``(1) Qualified heir.--The term `qualified heir'--
       ``(A) has the meaning given to such term by section 
     2032A(e)(1), and
       ``(B) includes any active employee of the trade or business 
     to which the qualified family-owned business interest relates 
     if such employee has been employed by such trade or business 
     for a period of at least 10 years before the date of the 
     decedent's death.
       ``(2) Member of the family.--The term `member of the 
     family' has the meaning given to such term by section 
     2032A(e)(2).
       ``(3) Applicable rules.--Rules similar to the following 
     rules shall apply:
       ``(A) Section 2032A(b)(4) (relating to decedents who are 
     retired or disabled).
       ``(B) Section 2032A(b)(5) (relating to special rules for 
     surviving spouses).
       ``(C) Section 2032A(c)(2)(D) (relating to partial 
     dispositions).
       ``(D) Section 2032A(c)(3) (relating to only 1 additional 
     tax imposed with respect to any 1 portion).
       ``(E) Section 2032A(c)(4) (relating to due date).
       ``(F) Section 2032A(c)(5) (relating to liability for tax; 
     furnishing of bond).
       ``(G) Section 2032A(c)(7) (relating to no tax if use begins 
     within 2 years; active management by eligible qualified heir 
     treated as material participation).
       ``(H) Section 2032A(e)(10) (relating to community 
     property).
       ``(I) Section 2032A(e)(14) (relating to treatment of 
     replacement property acquired in section 1031 or 1033 
     transactions).
       ``(J) Section 2032A(f) (relating to statute of 
     limitations).
       ``(K) Section 6166(b)(3) (relating to farmhouses and 
     certain other structures taken into account).
       ``(L) Subparagraphs (B), (C), and (D) of section 6166(g)(1) 
     (relating to acceleration of payment).
       ``(M) Section 6324B (relating to special lien for 
     additional estate tax).
       ``(4) Coordination with other estate tax benefits.--If 
     there is a reduction in the value of the gross estate under 
     this section--
       ``(A) the dollar limitation applicable under section 
     2032A(a)(2), and
       ``(B) the $1,000,000 amount under section 6601(j)(3) (as 
     adjusted),

     shall each be reduced (but not below zero) by the amount of 
     such reduction.''.
       (b) Clerical Amendment.--The table of sections for part III 
     of subchapter A of chapter 11 is amended by inserting after 
     the item relating to section 2033 the following new item:

``Sec. 2033A. Family-owned business exclusion.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to estates of decedents dying after December 31, 
     1997.
                      TITLE III--CHILD TAX CREDIT

     SEC. 301. CHILD TAX CREDIT.

       (a) In General.--Subpart A of part IV of subchapter A of 
     chapter 1 (relating to nonrefundable personal credits) is 
     amended by inserting after section 23 the following new 
     section:

     ``SEC. 24. CHILD TAX CREDIT.

       ``(a) In General.--Subpart A of part IV of subchapter A of 
     chapter 1 (relating to nonrefundable personal credits) is 
     amended by inserting after section 23 the following new 
     section:

     `SEC. 24. CHILD TAX CREDIT.

       `(a) Allowance of Credit.--
       `(1) In general.--In the case of an individual, there shall 
     be allowed as a credit against the tax imposed by this 
     chapter for the taxable year an amount equal to $500 
     multiplied by the number of eligible children of the taxpayer 
     for the taxable year.
       `(2) Phase-in of credit.--In the case of taxable years 
     beginning after December 31, 1996, and before January 1, 
     2000, paragraph (1) shall be applied by substituting `$300' 
     for `$500'.
       `(b) Phaseout of Credit.--
       `(1) In general.--The amount of the credit allowed under 
     subsection (a) shall be reduced (but not below zero) by the 
     amount determined under paragraph (2).
       `(2) Amount of reduction.--The amount determined under this 
     paragraph equals the amount which bears the same ratio to the 
     credit (determined without regard to this subsection) as--
       `(A) the excess of--
       `(i) the taxpayer's adjusted gross income for such taxable 
     year, over
       `(ii) $60,000, bears to
       `(B) $15,000.

     Any amount determined under this paragraph which is not a 
     multiple of $10 shall be rounded to the next lowest $10.

[[Page H4399]]

       `(3) Adjusted gross income.--For purposes of this 
     subsection, adjusted gross income of any taxpayer shall be 
     increased by any amount excluded from gross income under 
     section 911, 931, or 933.
       `(c) Eligible Child.--For purposes of this section, the 
     term `eligible child' means any child (as defined in section 
     151(c)(3)) of the taxpayer--
       (1) who has not attained age 13 as of the close of the 
     calendar year in which the taxable year of the taxpayer 
     begins,
       `(2) who is a dependent of the taxpayer with respect to 
     whom the taxpayer is allowed a deduction under section 151 
     for such taxable year, and
       `(3) whose TIN is included on the taxpayer's return for 
     such taxable year.
       `(d) Special Rules.--
       `(1) Amount of credit may be determined under tables.--The 
     amount of the credit allowed by this section may be 
     determined under tables prescribed by the Secretary.
       `(2) Certain other rules apply.--Rules similar to the rules 
     of subsections (c)(1)(E) and (F), (d), and (e) of section 32 
     shall apply for purposes of this section.' ''
       (b) Clerical Amendment.--The table of sections for subpart 
     A of part IV of subchapter A of chapter 1 is amended by 
     inserting after the item relating to section 23 the following 
     new item:

``Sec. 24. Families with young children.''

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1996.
       (2) The table of sections for subpart A of part IV of 
     subchapter A of chapter 1 is amended by inserting after the 
     item relating to section 23 the following new item:

``Sec. 24. Child tax credit.''

       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1997.
               TITLE IV--INCENTIVES FOR HIGHER EDUCATION

     SEC. 401. CREDIT FOR HIGHER EDUCATION EXPENSES.

       (a) In General.--Subpart A of part IV of subchapter A of 
     chapter 1 (relating to nonrefundable personal credits) is 
     amended by inserting after section 24 the following new 
     section:

     ``SEC. 24. HIGHER EDUCATION TUITION AND FEES.

       ``(a) Allowance of Credit.--In the case of an individual, 
     there shall be allowed as a credit against the tax imposed by 
     this chapter for the taxable year the amount of qualified 
     higher education expenses paid by the taxpayer during such 
     taxable year for education furnished during any academic 
     period beginning in such year.
       ``(b) Limitations.--The amount allowed as a credit under 
     subsection (a) for any taxable year with respect to the 
     qualified higher education expenses of any 1 individual shall 
     not exceed $1,500.
       ``(2) Credit allowed only for 2 taxable years.--No credit 
     shall be allowed under subsection (a) for a taxable year with 
     respect to the qualified higher education expenses of an 
     individual unless the taxpayer elects to have this section 
     apply with respect to such individual for such year. An 
     election under this paragraph shall not take effect with 
     respect to an individual for any taxable year if an election 
     under this paragraph (by the taxpayer or any other 
     individual) is in effect with respect to such individual for 
     any 2 prior taxable years.
       ``(3) Credit allowed for year only if individual is at 
     least \1/2\ time student for portion of year.--No credit 
     shall be allowed under subsection (a) for a taxable year with 
     respect to the qualified higher education expenses of an 
     individual unless such individual is an eligible student for 
     at least one academic period which begins during such year.
       ``(4) Credit allowed only for first two years of 
     postsecondary education.--No credit shall be allowed under 
     subsection (a) for a taxable year with respect to the 
     qualified higher education expenses of an individual if the 
     individual has completed (before the beginning of such 
     taxable year) the first 2 years of postsecondary education at 
     an institution of higher education.
       ``(c) Limitation Based on Modified Adjusted Gross Income.--
       ``(1) In general.--The amount which would (but for this 
     subsection) be taken into account under subsection (a) for 
     the taxable year shall be reduced (but not below zero) by the 
     amount determined under paragraph (2).
       ``(2) Amount of reduction.--The amount determined under 
     this paragraph is the amount which bears the same ratio to 
     the amount which would be so taken into account as--
       ``(A) the excess of--
       ``(i) the taxpayer's modified adjusted gross income for 
     such taxable year, over
       ``(ii) $50,000 ($80,000 in the case of a joint return), 
     bears to
       ``(B) $20,000.
       ``(3) Modified adjusted gross income.--The term `modified 
     adjusted gross income' means the adjusted gross income of the 
     taxpayer for the taxable year--
       ``(A) determined without regard to section 221, and
       ``(B) increased by any amount excluded from gross income 
     under section 911, 931, or 933.
       ``(d) Definitions.--For purposes of this section--
       ``(1) Qualified higher education expenses.--
       ``(A) In general.--The term `qualified higher education 
     expenses' means tuition and fees required for the enrollment 
     or attendance of--
       ``(i) the taxpayer,
       ``(ii) the taxpayer's spouse, or
       ``(iii) any dependent of the taxpayer with respect to whom 
     the taxpayer is allowed a deduction under section 151,

     at an institution of higher education.
       ``(B) Exception for education involving sports, etc.--Such 
     term does not include expenses with respect to any course or 
     other education involving sports, games, or hobbies, unless 
     such course or other education is part of the individual's 
     degree program.
       ``(C) Exception for nonacademic fees.--Such term does not 
     include student activity fees, athletic fees, insurance 
     expenses, or other expenses unrelated to an individual's 
     academic course of instruction.
       ``(2) Institution of higher education.--The term 
     `institution of higher education' means an institution--
       ``(A) which is described in section 481 of the Higher 
     Education Act of 1965 (20 U.S.C. 1088), as in effect on the 
     date of the enactment of this section, and
       ``(B) which is eligible to participate in a program under 
     title IV of such Act.
       ``(3) Eligible student.--The term `eligible student' means, 
     with respect to any academic period, a student who--
       ``(A) meets the requirements of section 484(a)(1) of the 
     Higher Education Act of 1965 (20 U.S.C. 1091(a)(1)), as in 
     effect on the date of the enactment of this section, and
       ``(B) is carrying at least \1/2\ the normal full-time work 
     load for the course of study the student is pursuing.
       ``(4) Other terms relating to the higher education act.--
     The following terms shall have the meanings prescribed in 
     regulations under section 481(g) of the Higher Education Act 
     of 1965 (20 U.S.C. 1088(g)), as added by the Student 
     Financial Aid Improvements Act of 1997:
       ``(A) Academic period.
       ``(B) Normal full-time workload.
       ``(C) First two years of postsecondary education.
       ``(D) Job skills and new job skills.
       ``(e) Treatment of Expenses Paid by Dependent.--If a 
     deduction under section 151 with respect to an individual is 
     allowed to another taxpayer for a taxable year beginning in 
     the calendar year in which such individual's taxable year 
     begins--
       ``(1) no credit shall be allowed under subsection (a) to 
     such individual for such individual's taxable year, and
       ``(2) qualified higher education expenses paid by such 
     individual during such individual's taxable year shall be 
     treated for purposes of this section as paid by such other 
     taxpayer.
       ``(f) Treatment of Certain Prepayments.--If qualified 
     higher education expenses are paid by the taxpayer during a 
     taxable year for an academic period which begins during the 
     first 3 months following such taxable year, such academic 
     period shall be treated for purposes of this section as 
     beginning during such taxable year.
       ``(g) Special Rules.--
       ``(1) Denial of credit if individual convicted of drug 
     offense.--No credit shall be allowed under subsection (a) 
     with respect to the qualified higher education expenses of an 
     individual for any taxable year if the individual has been 
     convicted before the end of such year of a Federal or State 
     felony offense consisting of the possession or distribution 
     of a controlled substance.
       ``(2) No double benefit.--No credit shall be allowed under 
     subsection (a) for any taxable year for any expense--
       ``(A) with respect to an individual if a deduction is 
     allowed under section 221 for the taxable year for any 
     expense with respect to such individual, or
       ``(B) for which a deduction is allowed under any other 
     provision of this chapter.
       ``(3) Identification requirement.--No credit shall be 
     allowed under subsection (a) to a taxpayer with respect to 
     the qualified higher education expenses of an individual 
     unless the taxpayer includes the name and taxpayer 
     identification number of such individual on the return of tax 
     for the taxable year.
       ``(4) Adjustment for certain scholarships.--The amount of 
     qualified higher education expenses otherwise taken into 
     account under subsection (a) with respect to an individual 
     for an academic period shall be reduced (before the 
     application of subsections (b) and (c)) by the sum of--
       ``(A) any amounts paid for the benefit of such individual 
     which are allocable to such period as--
       ``(i) a qualified scholarship which is excludable from 
     gross income under section 117,
       ``(ii) an educational assistance allowance under chapter 
     30, 31, 32, 34, or 35 of title 38, United States Code, or 
     under chapter 1606 of title 10, United States Code,
       ``(iii) a payment which is excludable from gross income 
     under section 127, or
       ``(iv) a payment (other than a gift, bequest, devise, or 
     inheritance within the meaning of section 102(a)) for such 
     individual's educational expenses, or attributable to such 
     individual's enrollment at an institution of higher 
     education, which is excludable from gross income under any 
     law of the United States, and
       ``(B) the amount excludable from gross income under section 
     135 which is allocable to such expenses with respect to such 
     individual for such period.

[[Page H4400]]

       ``(5) No credit for married individuals filing separate 
     returns.--If the taxpayer is a married individual (within the 
     meaning of section 7703), this section shall apply only if 
     the taxpayer and the taxpayer's spouse file a joint return 
     for the taxable year.
       ``(6) Nonresident aliens.--If the taxpayer is a nonresident 
     alien individual for any portion of the taxable year, this 
     section shall apply only if such individual is treated as a 
     resident alien of the United States for purposes of this 
     chapter by reason of an election under subsection (g) or (h) 
     of section 6013.
       ``(h) Inflation Adjustments.--
       ``(1) Dollar limitation on amount of credit.--
       ``(A) In general.--In the case of a taxable year beginning 
     after 1997, the $1,500 amount in subsection (b)(1) shall be 
     increased by an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins, determined by substituting `calendar year 1996' 
     for `calendar year 1992' in subparagraph (B) thereof.
       ``(B) Rounding.--If any amount as adjusted under 
     subparagraph (A) is not a multiple of $50, such amount shall 
     be rounded to the next lowest multiple of $50.
       ``(2) Income limits.--
       ``(A) In general.--In the case of a taxable year beginning 
     after 2000, the $50,000 and $80,000 amounts in subsection 
     (c)(2), section 221(b)(2)(B)(i)(II), and section 222(b)(2)(A) 
     shall each be increased by an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins, determined by substituting `calendar year 1999' 
     for `calendar year 1992' in subparagraph (B) thereof.
       ``(B) Rounding.--If any amount as adjusted under 
     subparagraph (A) is not a multiple of $5,000, such amount 
     shall be rounded to the next lowest multiple of $5,000.
       ``(i) Regulations.--The Secretary may prescribe such 
     regulations as may be necessary or appropriate to carry out 
     this section, including regulations providing for a recapture 
     of credit allowed under this section in cases where there is 
     a refund in a subsequent taxable year of any amount which was 
     taken into account in determining the amount of such 
     credit.''
       (b) Extension of Procedures Applicable to Mathematical or 
     Clerical Errors.--Paragraph (2) of section 6213(g) (relating 
     to the definition of mathematical or clerical errors) is 
     amended by striking ``and'' at the end of subparagraph (G), 
     by striking the period at the end of subparagraph (H) and 
     inserting ``, and'', and by inserting after subparagraph (H) 
     the following new subparagraph:
       ``(I) an omission of a correct TIN required under section 
     24(g)(3) or under section 221(d)(2)(A) (relating to higher 
     education tuition and fees) to be included on a return.''
       (c) Returns Relating To Higher Education Expenses.--
       (1) In general.--Subpart B of part III of subchapter A of 
     chapter 61 (relating to information concerning transactions 
     with other persons) is amended by inserting after section 
     6050R the following new section:

     ``SEC. 6050S. RETURNS RELATING TO HIGHER EDUCATION EXPENSES.

       ``(a) In General.--Any person--
       ``(1) which is an institution of higher education which 
     receives payments for qualified higher education expenses 
     with respect to any individual for any calendar year, or
       ``(2) which is engaged in a trade or business which, in the 
     course of such trade or business makes payments during any 
     calendar year to any individual which constitute 
     reimbursements or refunds (or similar amounts) of qualified 
     higher education expenses of such individual,

     shall make the return described in subsection (b) with 
     respect to the individual at such time as the Secretary may 
     by regulations prescribe.
       ``(b) Form and Manner of Returns.--A return is described in 
     this subsection if such return--
       ``(1) is in such form as the Secretary may prescribe,
       ``(2) contains--
       ``(A) the name, address, and TIN of the individual with 
     respect to whom payments described in subsection (a) were 
     received from (or were paid to),
       ``(B) the name, address, and TIN of any individual 
     certified by the individual described in subparagraph (A) as 
     the taxpayer who will claim the individual as a dependent for 
     purposes of the deduction allowable under section 151 for any 
     taxable year ending with or within the calendar year,
       ``(C) the--
       ``(i) aggregate amount of payments for qualified higher 
     education expenses received with respect to the individual 
     described in subparagraph (A) during the calendar year, and
       ``(ii) aggregate amount of reimbursements or refunds (or 
     similar amounts) paid to such individual during the calendar 
     year, and
       ``(D) such other information as the Secretary may 
     prescribe.
       ``(c) Application to Governmental Units.--For purposes of 
     this section--
       ``(1) a governmental unit or any agency or instrumentality 
     thereof shall be treated as a person, and
       ``(2) any return required under subsection (a) by such 
     governmental entity shall be made by the officer or employee 
     appropriately designated for the purpose of making such 
     return.
       ``(d) Statements To Be Furnished to Individuals With 
     Respect to Whom Information Is Required.--Every person 
     required to make a return under subsection (a) shall furnish 
     to each individual whose name is required to be set forth in 
     such return under subparagraph (A) or (B) of subsection 
     (b)(2) a written statement showing--
       ``(1) the name, address, and phone number of the 
     information contact of the person required to make such 
     return, and
       ``(2) the aggregate amounts described in subparagraphs (C) 
     and (D) of subsection (b)(2).

     The written statement required under the preceding sentence 
     shall be furnished on or before January 31 of the year 
     following the calendar year for which the return under 
     subsection (a) was required to be made.
       ``(e) Definitions.--For purposes of this section, the terms 
     `institution of higher education' and `qualified higher 
     education expenses' have the meanings given such terms by 
     section 24.
       ``(f) Returns Which Would Be Required To Be Made by 2 or 
     More Persons.--Except to the extent provided in regulations 
     prescribed by the Secretary, in the case of any amount 
     received by any person on behalf of another person, only the 
     person first receiving such amount shall be required to make 
     the return under subsection (a).
       ``(g) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary to carry out the provisions 
     of this section. No penalties shall be imposed under section 
     6724 with respect to any return or statement required under 
     this section until such time as such regulations are 
     issued.''
       (2) Assessable penalties.--Section 6724(d) (relating to 
     definitions) is amended--
       (A) by redesignating clauses (x) through (xv) as clauses 
     (xi) through (xvi), respectively, in paragraph (1)(B) and by 
     inserting after clause (ix) of such paragraph the following 
     new clause:
       ``(x) section 6050S (relating to returns relating to 
     payments for qualified higher education expenses),'', and
       (B) by striking ``or'' at the end of the next to last 
     subparagraph, by striking the period at the end of the last 
     subparagraph and inserting ``, or'', and by adding at the end 
     the following new subparagraph:
       ``(Z) section 6050S(d) (relating to returns relating to 
     qualified higher education expenses).''
       (3) Clerical amendment.--The table of sections for subpart 
     B of part III of subchapter A of chapter 61 is amended by 
     inserting after the item relating to section 6050R the 
     following new item:

``Sec. 6050S. Returns relating to higher education expenses.''
       (d) Clerical Amendment.--The table of sections for subpart 
     A of part IV of subchapter A of chapter 1 is amended by 
     inserting after the item relating to section 24 the following 
     new item:

``Sec. 24. Higher education tuition and fees.''

       (e) Effective Date.--The amendments made by this section 
     shall apply to expenses paid after December 31, 1997 (in 
     taxable years ending after such date).

     SEC. 402. DEDUCTION FOR HIGHER EDUCATION EXPENSES.

       (a) Deduction Allowed.-- Part VII of subchapter B of 
     chapter 1 (relating to additional itemized deductions for 
     individuals) is amended by redesignating section 221 as 
     section 222 and by inserting after section 220 the following 
     new section:

     ``SEC. 221. HIGHER EDUCATION TUITION AND FEES.

       ``(a) Allowance of Deduction.--In the case of an 
     individual, there shall be allowed as a deduction the amount 
     of qualified higher education expenses paid by the taxpayer 
     during the taxable year for education furnished to the 
     taxpayer, the taxpayer's spouse, or any dependent of the 
     taxpayer with respect to whom the taxpayer is allowed a 
     deduction under section 151, as an eligible student at an 
     institution of higher education during any academic period 
     beginning in such year.
       ``(b) Limitations.--
       ``(1) Dollar limitation.--
       ``(A) In general.--The amount allowed as a deduction under 
     subsection (a) for any taxable year shall not exceed $10,000.
       ``(B) Phase-in.--In the case of taxable years beginning in 
     1997 or 1998, subparagraph (A) shall be applied by 
     substituting `$5,000' for `$10,000'.
       ``(2) Limitation based on modified adjusted gross income.--
       ``(A) In general.--The amount which would (but for this 
     paragraph) be allowed as a deduction under subsection (a) 
     shall be reduced (but not below zero) by the amount 
     determined under subparagraph (B).
       ``(B) Amount of reduction.--The amount determined under 
     this subparagraph equals the amount which bears the same 
     ratio to the deduction (determined without regard to this 
     paragraph) as--
       ``(i) the excess of--

       ``(I) the taxpayer's modified adjusted gross income for the 
     taxable year, over
       ``(II) $50,000 ($80,000 in the case of a joint return), 
     bears to

       ``(ii) $20,000.
       ``(C) Modified adjusted gross income.--For purposes of 
     subparagraph (B), the term `modified adjusted gross income' 
     means the

[[Page H4401]]

     adjusted gross income of the taxpayer for the taxable year 
     determined--
       ``(i) without regard to this section and sections 911, 931, 
     and 933, and
       ``(ii) after the application of sections 86, 135, 219, and 
     469.

     For purposes of sections 86, 135, 219, and 469, adjusted 
     gross income shall be determined without regard to the 
     deduction allowed under this section.
       ``(D) Cross reference.--

  ``For inflation adjustment of $50,000 and $80,000 amounts, see 
section 24(h).

       ``(c) Definitions.--For purposes of this section--
       ``(1) In general.--Except as provided in paragraph (2), 
     terms used in this section which are also used in section 24 
     have the respective meanings given such terms in section 24.
       ``(2) Deduction available for education to acquire or 
     improve job skills.--For purposes of applying this section, 
     the requirement of section 24(d)(3) shall be treated as met 
     if--
       ``(A) the individual is enrolled in a course which enables 
     the individual to improve the individual's job skills or to 
     acquire new job skills, and
       ``(B) the individual is not enrolled in an elementary or 
     secondary school.
       ``(d) Special Rules.--
       ``(1) Denial of double benefit.--No deduction shall be 
     allowed under subsection (a) for any expense for which a 
     deduction is allowed to the taxpayer under any other 
     provision of this chapter.
       ``(2) Certain rules to apply.--Rules similar to the rules 
     of subsections (e) and (f) of section 24, and the following 
     rules of section 24(g), shall apply for purposes of this 
     section:
       ``(A) Paragraph (3) (relating to identification 
     requirement).
       ``(B) Paragraph (4) (relating to adjustment for certain 
     scholarships).
       ``(C) Paragraph (5) (relating to no benefit for married 
     individuals filing separate returns).
       ``(D) Paragraph (6) (relating to nonresident aliens).
       ``(3) Regulations.--The Secretary may prescribe such 
     regulations as may be necessary or appropriate to carry out 
     this section.''
       (b) Deduction Allowed in Computing Adjusted Gross Income.--
     Section 62(a) is amended by inserting after paragraph (16) 
     the following new paragraph:
       ``(17) Higher education tuition and fees.--The deduction 
     allowed by section 221.''
       (c) Conforming Amendment.--The table of sections for part 
     VII of subchapter B of chapter 1 is amended by striking the 
     item relating to section 221 and inserting:

``Sec. 221. Higher education tuition and fees.
``Sec. 222. Cross reference.''

       (d) Effective Date.--The amendments made by this section 
     shall apply to expenses paid after December 31, 1997.
 TITLE V--EXTENSION AND MODIFICATION OF AIRPORT AND AIRWAY TRUST FUND 
                                 TAXES

     SEC. 501. EXTENSION AND MODIFICATION OF AIRPORT AND AIRWAY 
                   TRUST FUND TAXES.

       (a) Fuel Taxes.--
       (1) Aviation fuel.--Paragraph (3) of section 4091(b) is 
     amended by striking subparagraph (A).
       (2) Aviation gasoline.--Subsection (d) of section 4081 is 
     amended by striking paragraph (2) and by redesignating 
     paragraph (3) as paragraph (2).
       (3) Noncommercial aviation.--Subsection (c) of section 4041 
     is amended by striking paragraph (3).
       (b) Ticket Taxes.--
       (1) Persons.--Section 4261 is amended by striking 
     subsection (g).
       (2) Property.--Section 4271 is amended by striking 
     subsection (d).
       (c) Modifications.--
       (1) Use of international travel facilities.--Subsection (c) 
     of section 4261 is amended to read as follows:
       ``(c) Use of International Travel Facilities.--
       ``(1) In general.--There is hereby imposed a tax of $8 on 
     any amount paid (whether within or without the United States) 
     for any transportation of any person by air, if such 
     transportation begins or ends in the United States.
       ``(2) Exception for transportation entirely taxable under 
     subsection (a).--This subsection shall not apply to any 
     transportation all of which is taxable under subsection (a) 
     (determined without regard to sections 4281 and 4282).
       ``(3) Special rule for alaska and hawaii.--In any case in 
     which the tax imposed by paragraph (1) applies to a segment 
     between the continental United States and Alaska or Hawaii or 
     between Alaska and Hawaii, such tax shall apply only to 
     departures and shall be at the rate of $6.''
       (2) Special rules.--Section 4261 is amended by 
     redesignating subsections (e) and (f) as subsections (f) and 
     (g), respectively, and by inserting after subsection (d) the 
     following new subsection:
       ``(e) Application of Subsection (a) to Domestic Segments of 
     International Transportation.--
       ``(1) In general.--In the case of taxable transportation 
     described in section 4262(a)(2), the tax imposed by 
     subsection (a) shall be applied by taking into account only 
     an amount which bears the same ratio to the amount paid for 
     such transportation as the number of specified miles in the 
     domestic segments of such transportation bears to the total 
     number of specified miles in such transportation.
       ``(2) Specified miles.--For purposes of paragraph (1), the 
     term `specified miles' means the great circle miles (as 
     specified by the Secretary) between the 2 points of each 
     segment. The Secretary may specify mileage which shall apply 
     in lieu of the mileage determined under the preceding 
     sentence with respect to any 2 points if the Secretary 
     determines that the mileage on the route customarily traveled 
     by air between such points is different from the mileage 
     determined under the preceding sentence.
       ``(3) Domestic segment.--For purposes of this section, the 
     term `domestic segment' means any segment which is taxable 
     transportation described in section 4262(a)(1).''
       (3) Conforming amendments.--
       (A) Paragraph (2) of section 4262(a) is amended by striking 
     ``United States, but'' and all that follows and inserting 
     ``United States.''.
       (B) Subsection (c) of section 4262 is amended by striking 
     paragraph (3).
       (d) Effective Dates.--
       (1) Fuel taxes.--The amendments made by subsection (a) 
     shall apply take effect on October 1, 1997.
       (2) Ticket taxes.--
       (A) In general.--The amendments made by subsections (b) and 
     (c) shall apply to transportation beginning on or after 
     October 1, 1997.
       (B) Treatment of amounts paid for tickets purchased before 
     date of enactment.--The amendments made by subsection (c) 
     shall not apply to amounts paid for a ticket purchased before 
     the date of the enactment of this Act for a specified flight 
     beginning on or after October 1, 1997.
                  TITLE VI--ENFORCING REVENUE TARGETS

     SEC. 601. ESTIMATES OF NECESSITY TO SUSPEND REVENUE 
                   REDUCTIONS.

       (a) Estimate of Necessity To Suspend New Revenue 
     Reductions.--The Director of the Office of Management and 
     Budget shall issue a report to the President and the Congress 
     on December 15 of any calendar year in which such statement 
     identifies actual or projected revenues in the current or 
     immediately preceding fiscal years lower than the applicable 
     total revenue target in subsection (b) by more than 1 percent 
     of the applicable total revenue target for such year. The 
     report shall include--
       (1) all existing laws and policies enacted as part of any 
     reconciliation legislation in calendar 1997 which would cause 
     revenues to decline in the calendar year which begins January 
     1, compared to laws and policies in effect on December 15;
       (2) the amounts by which revenues would be reduced by 
     implementation of the provisions of law described in 
     paragraph (1) compared to provisions of law in effect on 
     December 15; and
       (3) whether delaying implementation of the provisions of 
     law described in paragraph (1) would cause the total for 
     revenues in the projected revenues in the current fiscal year 
     and actual revenues in the immediately preceding fiscal year 
     to equal or exceed the total of the targets for the 
     applicable years.
       (b) Total Revenue Targets.--For purposes of subsection (a), 
     the total revenue targets shall be--
       (1) for fiscal year 1998, $1,601,800,000,000;
       (2) for fiscal year 1999, $1,664,200,000,000;
       (3) for fiscal year 2000, $1,728,100,000,000;
       (4) for fiscal year 2001, $1,805,100,000,000; and
       (5) for fiscal year 2002, $1,890,400,000,000.

     SEC. 602. SUSPENSION OF CHILD TAX CREDIT AND INCREASES IN 
                   UNIFIED ESTATE AND GIFT TAX CREDIT IF REVENUE 
                   TARGETS NOT MET.

       (a) Child Care Credit.--Section 24 of the Internal Revenue 
     Code of 1986 (relating to child tax credit), as added by this 
     Act, shall not apply to taxable years beginning in a tax 
     benefit suspension year.
       (b) Unified Estate and Gift Tax Credit.--If, under section 
     2010 of the Internal Revenue Code of 1986, as amended by this 
     Act, there is an increase in the credit which would (but for 
     this section) take effect with respect to any tax benefit 
     suspension year, then--
       (1) any increase in such credit with respect to such year 
     and each subsequent calendar year shall be delayed 1 calendar 
     year, and
       (2) the level of credit under such section with respect to 
     the prior calendar year shall apply to the calendar year.
       (c) Tax Benefit Suspension Year.--For purposes of this 
     section, the term ``tax benefit suspension year'' means any 
     calendar year if the statement issued under section 601 
     during the preceding calendar year indicates that--
       (1) for the fiscal year ending in such preceding calendar 
     year, actual revenues were lower than the applicable total 
     revenue target in section 601(b) for such fiscal year by more 
     than 1 percent of such target, or
       (2) for the fiscal year beginning in such preceding 
     calendar year, projected revenues (determined without regard 
     to this section) are estimated to be lower than the 
     applicable total revenue target in section 601(b) for such 
     fiscal year by more than 1 percent of such target.
       (d) Percentage Suspension Where Full Suspension Unnecessary 
     To Achieve Revenue Target.--If the application of subsections 
     (a) and (b) to any tax benefit suspension year would (but for 
     this subsection) result in revenues above the applicable 
     revenue target described in section 601(b), such

[[Page H4402]]

     subsections shall be applied such that the amount of each 
     benefit which is denied is only the percentage of such 
     benefit which is necessary to result in revenues equal to 
     such target. Such percentage shall be determined by the 
     Director of the Office of Management and Budget, and the same 
     percentage shall apply to such benefits.

      Amendments to H.R. 2015: Budget Reconciliation Spending Act


 Amendment to the Reconciliation Bill, as Approved by the Committee on 
   Ways and Means on June 10, 1997, Offered by Mrs. Meek and Ms. Ros-
                                Lehtinen

       In section 9302 strike subsection (a) and insert the 
     following:
       (a) In General.--Section 402(a)(2) of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996 8 U.S.C. 1612(A)(2)) is amended by adding after 
     subparagraph (D) the following new subparagraph:
       ``(E) Qualified alien on august 22, 1996.--With respect to 
     eligibility for benefits for the program defined in paragraph 
     (3)(A) (relating to the supplemental security income 
     program), paragraph (1) shall not apply to an alien who on 
     August 22, 1996, was a qualified alien.''.
                                                                    ____



 Amendment to H.R. -- (reconciliation) Offered by Mrs. Meek of Florida

       At the end of section 9103(a), add the following:
       (3) Additional mandatory state payments.--
       (A) Duties of the social security administration.--For each 
     of fiscal years 1998 through 2002, the Commissioner of Social 
     Security shall--
       (i) estimate the difference between--
       (I) the total cost to the Federal Government of providing 
     to qualified aliens (as defined in section 431 of the 
     Personal Responsibility and Work Opportunity Reconciliation 
     Act of 1996) supplemental security income benefits under 
     title XVI of the Social Security Act and medical assistance 
     benefits under title XIX of such Act; and
       (II) $2,300,000,000 for fiscal year 1998, $2,100,000,000 
     for fiscal year 1999, $1,800,000,000 for fiscal year 2000, 
     $1,400,000,000 for fiscal year 2001, and $1,500,000,000 for 
     fiscal year 2002; and
       (ii) collect from each State (other than the Commonwealth 
     of Puerto Rico, the Virgin Islands, or Guam) an amount equal 
     to--
       (I) the ratio of the number of all persons in the State 
     receiving supplemental security income benefits under title 
     XVI of the Social Security Act to the number of all persons 
     in the United States receiving such benefits; multiplied by
       (II) the difference estimated under clause (i).
       (B) Payment.--In order for any State (other than the 
     Commonwealth of Perto Rico, the Virgin Islands, or Guam) to 
     be eligible for payments pursuant to title XIX with respect 
     to expenditures for any quarter in fiscal year 1998 through 
     2002, the State shall pay to the Commissioner of Social 
     Security the amount required to be collected from the State 
     under subparagraph (A)(ii) for the fiscal year.
       (C) Use of amounts collected.--For fiscal year 1998 and 
     each subsequent fiscal year, the sums collected from each 
     State pursuant to subparagraph (A)(ii) shall be credited to a 
     special fund established in the Treasury of the United States 
     for State administrative payment fees. Amounts so credited, 
     to the extent and in the amounts provided in advance in 
     appropriations Acts, shall be available to defray expenses 
     incurred in carrying out title XVI of the Social Security Act 
     and related laws.
                                                                    ____



 amendment offered by mr. brown of ohio to the medicare reconciliation 
                               provisions

       Page 8, line 6, strike ``500,000'' and insert ``100,000''.
       Page 131, after line 36, insert the following new 
     subsection (and redesignate the succeeding subsections 
     accordingly):
       (c) Waiver of Coinsurance.--Section 1833(a)(1) (42 U.S.C. 
     13951(a)(1)) is amended by--
       (A) striking ``and'' at the end of clause (O), and
       (B) inserting before the semicolon at the end the 
     following: ``, and with respect to screening mammography (as 
     defined in section 1861(jj), the amount paid shall be 100 
     percent of the fee schedule amount provided under section 
     1848''.
       Page 132, line 7, before the period insert the following:

     ``, except that the amendments made by subsection (c) shall 
     apply to items and services furnished on or after January 1, 
     2000''.
       Page 133, after line 8, insert the following new subsection 
     (and redesignate the succeeding subsections accordingly):
       (c) Waiver of Coinsurance.--Section 1833(a)(1) (42 U.S.C. 
     1395l(a)(1)) is amended by--
       (A) striking ``and'' at the end of clause (O), and
       (B) inserting before the semicolon at the end the 
     following: ``, and with respect to screening pap smear and 
     screening pelvic exam (as defined in section 1861(nn)), the 
     amount paid shall be 100 percent of the fee schedule amount 
     provided under section 1848''.
       Page 133, line 15, before the period insert the following:

     ``, except that the amendments made by subsection (c) shall 
     apply to items and services furnished on or after January 1, 
     2000''.
       Page 134, after line 14, insert the following new 
     subsection (and redesignate the succeeding subsections 
     accordingly):
       (c) Waiver of Coinsurance.--Section 1833(a)(1) (42 U.S.C. 
     1395l(a)(1)) is amended by--
       (A) striking ``and'' at the end of clause (O), and
       (B) inserting before the semicolon at the end the 
     following: ``, and with respect to prostate cancer screening 
     tests (as defined in section 1861(oo)), the amount paid shall 
     be 100 percent of the fee schedule amount provided under 
     section 1848''.
       Page 134, line 31, before the period insert the following:

     ``, except that the amendments made by subsection (e) shall 
     apply to items and services furnished on or after January 1, 
     2000''.
       Page 140, after line 33, insert the following new 
     subsection (and redesignate the succeeding subsections 
     accordingly):
       (e) Waiver of Coinsurance.--Section 1833(a)(1) (42 U.S.C. 
     1395l(a)(1) is amended by--
       (A) striking ``and'' at the end of clause (O), and
       (B) inserting before the semicolon at the end the 
     following: ``, and with respect to colorectal cancer 
     screening test (as defined in section 1861(pp)), the amount 
     paid shall be 100 percent of the fee schedule amount 
     provided under section 1848''.
       Page 141, line 26, before the period insert the following:

     ``, except that the amendments made by subsection (c) shall 
     apply to items and services furnished on or after January 1, 
     2000''.
       Page 143, strike lines 24 through 30.
       Page 145, after line 22, insert the following new 
     subsection (and redesignate the succeeding subsection 
     accordingly):
       (c) Waiver of Coinsurance.--Section 1833(a)(1) (42 U.S.C. 
     13951(a)1)) is amended by--
       (A) striking ``and'' at the end of clause (O), and
       (B) inserting before the semicolon at the end the 
     following:'', and with respect to bone mass measurement (as 
     defined in section 1861(rr)), the amount paid shall be 100 
     percent of the fee schedule amount provided under section 
     1848''.
       Page 141, line 26, before the period insert the following:

     ``, except that the amendments made by subsection (c) shall 
     apply to items and services furnished on or after January 1, 
     2000''.
                                                                    ____



      amendment offered by mr. brown of ohio to the child health 
                       reconciliation provisions

       Add to the end the following new section:

     SEC. 3504. CONTINUATION OF MEDICAID ELIGIBILITY FOR DISABLED 
                   CHILDREN WHO LOSE SSI BENEFITS

       (a) In General.--Section 1902(a)(10)(A)(i)(II) (42 U.S.C. 
     1396(a)(10)(A)(i)(II) is amended by inserting ``or were being 
     paid as of the date of enactment of section 211(a) of the 
     Personal Responsibility and Work Opportunity Reconciliation 
     Act of 1996 (P.L. 104-193) and would continue to be paid but 
     for enactment of that section'' after ``title XVI''.
       (b) Effective Date.--The amendment made by Sub-Section (a) 
     applies to medical assistance furnished on or after July 1, 
     1997.
                                                                    ____



      amendment offered by mr. brown of ohio to the child health 
                       reconciliation provisions

  (Page & line nos. refer to Committee Print of 6/11/97, KIDCARE.006)

       Page 2, amend lines 19 and 20 to read as follows:
       ``(3) Other methods specified under the plan other than 
     direct purchase of services from providers.
                                                                    ____



amendment to h.r. --, as reported, offered by mr. gekas of pennsylvania 
                         and mr. frost of texas

       Insert after section 966 of the bill the following (and 
     conform the table of contents accordingly):

     SEC. 967. EXEMPTION FROM REPORTING REQUIREMENTS FOR CERTAIN 
                   AMOUNTS PAID TO ELECTION OFFICIALS AND ELECTION 
                   WORKERS.

       (A) In General.--Section 6051 is amended by adding at the 
     end the following new subsection:
       ``(g) Exception for Certain Amounts Paid to Election 
     Officials and Election Workers.--Notwithstanding any other 
     provision of this title, the Secretary may not require a 
     statement described in this section to include any amount 
     paid as remuneration for service performed by an election 
     official or election worker (within the meaning of section 
     3121(b)(F)(iv)) if it is reasonable to believe that such 
     remuneration is not subject to tax under chapter 21 (relating 
     to Federal Insurance Contributions Act).''
       (b) Effective Date.--The amendment made by this section 
     shall apply to remuneration paid after December 31, 1996, in 
     taxable years ending after such date.
                                                                    ____



                    Amendment to H.R.--, as reported

              offered by mr. barton of texas and mr. minge

       At the end of the bill, add the following new title:
                  TITLE XI--BUDGET PROCESS ENFORCEMENT

     SEC. 11001. SHORT TITLE AND TABLE OF CONTENTS.

       (a) Short Title.--This title may be cited as the ``Balanced 
     Budget Assurance Act of 1997''.

[[Page H4403]]

       (b) Table of Contents.--

                  TITLE XI--BUDGET PROCESS ENFORCEMENT

Sec. 11001. Short title and table of contents.
Sec. 11002. Definitions.

  Subtitle A--Ensure That the Bipartisan Balanced Budget Agreement of 
                         1997 Achieves Its Goal

Sec. 11101. Timetable.
Sec. 11102. Procedures to avoid sequestration or delay of new revenue 
              reductions.
Sec. 11103. Effect on Presidents' budget submissions; point of order.
Sec. 11104. Deficit and revenue targets.
Sec. 11105. Direct spending caps.
Sec. 11106. Economic assumptions.
Sec. 11107. Revisions to deficit and revenue targets and to the caps 
              for entitlements and other mandatory spending.

                   Subtitle B--Enforcement Provisions

Sec. 11201. Reporting excess spending.
Sec. 11202. Enforcing direct spending caps.
Sec. 11203. Sequestration rules.
Sec. 11204. Enforcing revenue targets.
Sec. 11205. Exempt programs and activities.
Sec. 11206. Special rules.
Sec. 11207. The current law baseline.
Sec. 11208. Limitations on emergency spending.

     SEC. 11002. DEFINITIONS.

       For purposes of this title:
       (1) Eligible population.--The term ``eligible population'' 
     shall mean those individuals to whom the United States is 
     obligated to make a payment under the provisions of a law 
     creating entitlement authority. Such term shall not include 
     States, localities, corporations or other nonliving entities.
       (2) Sequester and sequestration.--The terms ``sequester'' 
     and ``sequestration'' refer to or mean the cancellation of 
     budgetary resources provided by discretionary appropriations 
     or direct spending law.
       (3) Breach.--The term ``breach'' means, for any fiscal 
     year, the amount (if any) by which outlays for that year 
     (within a category of direct spending) is above that 
     category's direct spending cap for that year.
       (4) Baseline.--The term ``baseline'' means the projection 
     (described in section 11207) of current levels of new budget 
     authority, outlays, receipts, and the surplus or deficit into 
     the budget year and the outyears.
       (5) Budgetary resources.--The term ``budgetary resources'' 
     means new budget authority, unobligated balances, direct 
     spending authority, and obligation limitations.
       (6) Discretionary appropriations.--The term ``discretionary 
     appropriations'' means budgetary resources (except to fund 
     direct spending programs) provided in appropriation Acts. If 
     an appropriation Act alters the level of direct spending or 
     offsetting collections, that effect shall be treated as 
     direct spending. Classifications of new accounts or 
     activities and changes in classifications shall be made in 
     consultation with the Committees on Appropriations and the 
     Budget of the House of Representatives and the Senate and 
     with CBO and OMB.
       (7) Direct spending.--The term ``direct spending'' means--
       (A) budget authority provided by law other than 
     appropriation Acts, including entitlement authority;
       (B) entitlement authority; and
       (C) the food stamp program.

     If a law other than an appropriation Act alters the level of 
     discretionary appropriations or offsetting collections, that 
     effect shall be treated as direct spending.
       (8) Entitlement authority.--The term ``entitlement 
     authority'' means authority (whether temporary or permanent) 
     to make payments (including loans and grants), the budget 
     authority for which is not provided for in advance by 
     appropriation Acts, to any person or government if, under the 
     provisions of the law containing such authority, the United 
     States is obligated to make such payments to persons or 
     governments who meet the requirements established by such 
     law.
       (9) Current.--The term ``current'' means, with respect to 
     OMB estimates included with a budget submission under section 
     1105(a) of title 31 U.S.C., the estimates consistent with the 
     economic and technical assumptions underlying that budget.
       (10) Account.--The term ``account'' means an item for which 
     there is a designated budget account designation number in 
     the President's budget.
       (11) Budget year.--The term ``budget year'' means the 
     fiscal year of the Government that starts on the next October 
     1.
       (12) Current year.--The term ``current year'' means, with 
     respect to a budget year, the fiscal year that immediately 
     precedes that budget year.
       (13) Outyear.--The term ``outyear'' means, with respect to 
     a budget year, any of the fiscal years that follow the budget 
     year.
       (14) OMB.--The term ``OMB'' means the Director of the 
     Office of Management and Budget.
       (15) CBO.--The term ``CBO'' means the Director of the 
     Congressional Budget Office.
       (16) Budget outlays and outlays.--The terms ``budget 
     outlays'' and ``outlays'' mean, with respect to any fiscal 
     year, expenditures of funds under budget authority during 
     such year.
       (17) Budget authority and new budget authority.--The terms 
     ``budget authority'' and ``new budget authority'' have the 
     meanings given to them in section 3 of the Congressional 
     Budget and Impoundment Control Act of 1974.
       (18) Appropriation act.--The term ``appropriation Act'' 
     means an Act referred to in section 105 of title 1 of the 
     United States Code.
       (19) Consolidated Deficit.--The term ``consolidated 
     deficit'' means, with respect to a fiscal year, the amount by 
     which total outlays exceed total receipts during that year.
       (20) Surplus.--The term ``surplus'' means, with respect to 
     a fiscal year, the amount by which total receipts exceed 
     total outlays during that year.
       (21) Direct spending caps.--The term ``direct spending 
     caps'' means the nominal dollar limits for entitlements and 
     other mandatory spending pursuant to section 11105 (as 
     modified by any revisions provided for in this Act).
  Subtitle A--Ensure That the Bipartisan Balanced Budget Agreement of 
                         1997 Achieves Its Goal

     SEC. 11101. TIMETABLE.

Action to be completed:
CBO economic and budget update.........................................
President's budget update based on new assumptions.....................
CBO and OMB updates....................................................
Preview report.........................................................
Not later than November 1 (and as soon as practical after the end of 
OMB and CBO Analyses of Deficits, Revenues and Spending Levels and ....
  Projections for the Upcoming Year.
Congressional action to avoid sequestration............................
OMB issues final (look back) report for prior year and preview for ....
  current year.
Presidential sequester order or order delaying new/additional revenues 
  reductions scheduled to take effect pursuant to reconciliation 
  legislation enacted in calendar year 1997.

     SEC. 11102. PROCEDURES TO AVOID SEQUESTRATION OR DELAY OF NEW 
                   REVENUE REDUCTIONS.

       (a) Special Message.--If the OMB Analysis of Actual 
     Spending Levels and Projections for the Upcoming Year 
     indicates that--
       (1) deficits in the most recently completed fiscal year 
     exceeded, or the deficits in the budget year are projected to 
     exceed, the deficit targets in section 11104;
       (2) revenues in the most recently completed fiscal year 
     were less than, or revenues in the current year are projected 
     to be less than, the revenue targets in section 11104; or
       (3) outlays in the most recently completed fiscal year 
     exceeded, or outlays in the current year are projected to 
     exceed, the caps in section 11104;

     the President shall submit to Congress with the OMB Analysis 
     of Actual Spending Levels and Projections for the Upcoming 
     Year a special message that includes proposed legislative 
     changes to--
       (A) offset the net deficit or outlay excess;
       (B) offset any revenue shortfall; or
       (C) revise the deficit or revenue targets or the outlay 
     caps contained in this Act;

     through any combination of--
       (i) reductions in outlays;
       (ii) increases in revenues; or
       (iii) increases in the deficit targets or expenditure caps, 
     or reductions in the revenue targets, if the President 
     submits a written determination that, because of economic or 
     programmatic reasons, none of the variances from the balanced 
     budget plan should be offset.
       (b) Introduction of the President's Package.--Not later 
     than November 15, the message from the President required 
     pursuant to subsection (a) shall be introduced as a joint 
     resolution in the House of Representatives or the Senate by 
     the chairman of its Committee on the Budget. If the chairman 
     fails to do so, after November 15, the joint resolution may 
     be introduced by any Member of that House of Congress and 
     shall be referred to the Committee on the Budget of that 
     House.
       (c) House Budget Committee Action.--The Committee on the 
     Budget of the House of Representatives shall, by November 15, 
     report a joint resolution containing--
       (1) the recommendations in the President's message, or 
     different policies and proposed legislative changes than 
     those contained in the message of the President, to 
     ameliorate or eliminate any excess deficits or expenditures 
     or any revenue shortfalls, or
       (2) any changes to the deficit or revenue targets or 
     expenditure caps contained in this Act, except that any 
     changes to the deficit or revenue targets or expenditure caps 
     cannot be greater than the changes recommended in the message 
     submitted by the President.
       (d) Procedure if the Committees on the Budget of the House 
     of Representatives or Senate Fails To Report Required 
     Resolution.--
       (1) Automatic discharge of committees on the budget of the 
     house.--If the Committee on the Budget of the House of 
     Representatives fails, by November 20, to report a resolution 
     meeting the requirements of subsection (c), the committee 
     shall be automatically discharged from further consideration 
     of the joint resolution reflecting the President's 
     recommendations introduced pursuant

[[Page H4404]]

     to subsection (a), and the joint resolution shall be placed 
     on the appropriate calendar.
       (2) Consideration of discharge resolution in the house.--If 
     the Committee has been discharged under paragraph (1) above, 
     any Member may move that the House of Representatives 
     consider the resolution. Such motion shall be highly 
     privileged and not debatable. It shall not be in order to 
     consider any amendment to the resolution except amendments 
     which are germane and which do not change the net deficit 
     impact of the resolution.
       (e) Consideration of joint resolution in the house.--
     Consideration of resolution reported pursuant to subsection 
     (c) or (d) shall be pursuant to the procedures set forth in 
     section 305 of the Congressional Budget Act of 1974 and 
     subsection (d).
       (f) Transmittal to Senate.--If a joint resolution passes 
     the House of Representatives pursuant to subsection (e), the 
     Clerk of the House of Representatives shall cause the 
     resolution to be engrossed, certified, and transmitted to the 
     Senate within 1 calendar day of the day on which the 
     resolution is passed. The resolution shall be referred to the 
     Senate Committee on the Budget.
       (g) Requirements for Special Joint Resolution in the 
     Senate.--The Committee on the Budget of the Senate shall 
     report not later than December 1--
       (1) a joint resolution reflecting the message of the 
     President; or
       (2) the joint resolution passed by the House of 
     Representatives, with or without amendment; or
       (3) a joint resolution containing different policies and 
     proposed legislative changes than those contained in either 
     the message of the President or the resolution passed by the 
     House of Representatives, to eliminate all or part of any 
     excess deficits or expenditures or any revenue shortfalls, or
       (4) any changes to the deficit or revenue targets, or to 
     the expenditure caps, contained in this Act, except that any 
     changes to the deficit or revenue targets or expenditure caps 
     cannot be greater than the changes recommended in the message 
     submitted by the President.
       (h) Procedure if the Senate Budget Committee Fails To 
     Report Required Resolution.--
       (1) Automatic discharge of senate budget committee.--In the 
     event that the Committee on the Budget of the Senate fails, 
     by December 1, to report a resolution meeting the 
     requirements of subsection (g), the committee shall be 
     automatically discharged from further consideration of the 
     joint resolution reflecting the President's recommendations 
     introduced pursuant to subsection (a) and of the resolution 
     passed by the House of Representatives, and both joint 
     resolutions shall be placed on the appropriate calendar.
       (2) Consideration of discharge resolution in the senate.--
     (A) If the Committee has been discharged under paragraph (1), 
     any member may move that the Senate consider the resolution. 
     Such motion shall be highly privileged and not debatable. It 
     shall not be in order to consider any amendment to the 
     resolution except amendments which are germane and which do 
     not change the net deficit impact of the resolution.
       (B) Consideration of resolutions reported pursuant to 
     subsections (c) or (d) shall be pursuant to the procedures 
     set forth in section 305 of the Congressional Budget Act of 
     1974 and subsection (d).
       (C) If the joint resolution reported by the Committees on 
     the Budget pursuant to subsection (c) or (g) or a joint 
     resolution discharged in the House of Representatives or the 
     Senate pursuant to subsection (d)(1) or (h)(1) would 
     eliminate less than--
       (i) the entire amount by which actual or projected deficits 
     exceed, or revenues fall short of, the targets in this Act; 
     or
       (ii) the entire amount by which actual or projected outlays 
     exceed the caps contained in this Act;

     then the Committee on the Budget of the Senate shall report a 
     joint resolution, raising the deficit targets or outlay caps, 
     or reducing the revenue targets for any year in which actual 
     or projected spending, revenues or deficits would not conform 
     to the deficit and revenue targets or expenditure caps in 
     this Act.
       (k)  Conference Reports Shall Fully Address Deficit 
     Excess.--It shall not be in order in the House of 
     Representatives or the Senate to consider a conference report 
     on a joint resolution to eliminate all or part of any excess 
     deficits or outlays or to eliminate all or part of any 
     revenue shortfall compared to the deficit and revenue targets 
     and the expenditure caps contained in this Act, unless--
       (1) the joint resolution offsets the entire amount of any 
     overage or shortfall; or
       (2) the House of Representatives and Senate both pass the 
     joint resolution reported pursuant to subsection (j)(2).

     The vote on any resolution reported pursuant to subsection 
     (j)(2) shall be solely on the subject of changing the deficit 
     or revenue targets or the expenditure limits in this Act.

     SEC. 11103. EFFECT ON PRESIDENTS' BUDGET SUBMISSIONS; POINT 
                   OF ORDER.

       (a) Budget Submission.--Any budget submitted by the 
     President pursuant to section 1105(a) of title 31, United 
     States Code, for each of fiscal years 1998 through 2007 shall 
     be consistent with the spending, revenue, and deficit levels 
     established in sections 11104 and 11105 or it shall recommend 
     changes to those levels
       (b) Point of Order.--It shall not be in order in the House 
     of Representatives or the Senate to consider any concurrent 
     resolution on the budget unless it is consistent with the 
     spending, revenue, and deficit levels established in sections 
     11104 and 11105.

     SEC. 11104. DEFICIT AND REVENUE TARGETS.

       (a) Consolidated Deficit (or Surplus) Targets.--For 
     purposes of sections 11102 and 11107, the consolidated 
     deficit targets shall be--
       (1) for fiscal year 1998, $90,500,000,000;
       (2) for fiscal year 1999, $89,700,000,000;
       (3) for fiscal year 2000, $83,000,000,000;
       (4) for fiscal year 2001, $53,300,000,000; and
       (5) for fiscal year 2002, there shall be a surplus of not 
     less than $1,400,000,000.
       (b) Consolidated Revenue Targets.--For purposes of sections 
     11102, 11107, 11201, and 11204, the consolidated revenue 
     targets shall be--
       (1) for fiscal year 1998, $1,601,800,000,000;
       (2) for fiscal year 1999, $1,664,200,000,000;
       (3) for fiscal year 2000, $1,728,100,000,000;
       (4) for fiscal year 2001, $1,805,100,000,000; and
       (5) for fiscal year 2002, $1,890,400,000,000.

     SEC. 11105. DIRECT SPENDING CAPS.

       (a) In General.--Effective upon submission of the report by 
     OMB pursuant to subsection (c), direct spending caps shall 
     apply to all entitlement authority except for undistributed 
     offsetting receipts and net interest outlays. For purposes of 
     enforcing direct spending caps under this Act, each separate 
     program shown in the table set forth in subsection (d) shall 
     be deemed to be a category.
       (b) Budget Committee Reports.--Within 30 days after 
     enactment of this Act, the Budget Committees of the House of 
     Representatives and the Senate shall file with their 
     respective Houses identical reports containing account 
     numbers and spending levels for each specific category.
       (c) Report by OMB.--Within 30 days after enactment of this 
     Act, OMB shall submit to the President and each House of 
     Congress a report containing account numbers and spending 
     limits for each specific category.
       (d) Contents of Reports.--All direct spending accounts not 
     included in these reports under separate categories shall be 
     included under the heading ``Other Entitlements and Mandatory 
     Spending''. These reports may include adjustments among the 
     caps set forth in this Act as required below, however the 
     aggregate amount available under the ``Total Entitlements and 
     Other Mandatory Spending'' cap shall be identical in each 
     such report and in this Act and shall be deemed to have been 
     adopted as part of this Act. Each such report shall include 
     the actual amounts of the caps for each year of fiscal years 
     1998 through 2002 consistent with the concurrent resolution 
     on the budget for FY 1998 for each of the following 
     categories:
       Earned Income Tax Credit,
       Family Support,
       Federal retirement:
       Civilian/other,
       Military,
       Medicaid,
       Medicare,
       Social security,
       Supplemental security income,
       Unemployment compensation,
       Veterans' benefits,
       Medicare,
       Other entitlements and mandatory spending, and
       Aggregate entitlements and other mandatory spending.
       (e) Additional Spending Limits.--Legislation enacted 
     subsequent to this Act may include additional caps to limit 
     spending for specific programs, activities, or accounts with 
     these categories. Those additional caps (if any) shall be 
     enforced in the same manner as the limits set forth in such 
     joint explanatory statement.

     SEC. 11106. ECONOMIC ASSUMPTIONS.

       Subject to periodic reestimation based on changed economic 
     conditions or changes in eligible population, determinations 
     of the direct spending caps under section 11105, any breaches 
     of such caps, and actions necessary to remedy such breaches 
     shall be based upon the economic assumptions set forth in the 
     joint explanatory statement of managers accompanying the 
     concurrent resolution on the budget for fiscal year 1998 
     (House Concurrent Resolution 84, 105th Congress).

     SEC. 11107. REVISIONS TO DEFICIT AND REVENUE TARGETS AND TO 
                   THE CAPS FOR ENTITLEMENTS AND OTHER MANDATORY 
                   SPENDING.

       (a) Automatic Adjustments to Deficit and Revenue Targets 
     and to Caps for Entitlements and Other Mandatory Spending.--
     When the President submits the budget under section 1105(a) 
     of title 31, United States Code, for any year, OMB shall 
     calculate (in the order set forth below), and the budget and 
     reports shall include, adjustments to the deficit and revenue 
     targets, and to the direct spending caps (and those limits as 
     cumulatively adjusted) for the current year, the budget year, 
     and each outyear, to reflect the following:
       (1) Changes to revenue targets.--
       (A) Changes in growth.--For Federal revenues and deficits 
     under laws and policies enacted or effective before July 1, 
     1997, growth adjustment factors shall equal the ratio between 
     the level of year-over-year growth measured for the fiscal 
     year most recently completed and the applicable estimated 
     level for that year as described in section 11105.
       (B) Changes in inflation.--For Federal revenues and 
     deficits under laws and policies enacted or effective before 
     July 1, 1997, inflation adjustment factors shall equal the 
     ratio between the level of year-over-year growth measured for 
     the fiscal year most recently

[[Page H4405]]

     completed and the applicable estimated level for that year as 
     described in section 11105.
       (2) Adjustments to direct spending caps.--
       (A) Changes in concepts and definitions.--The adjustments 
     produced by changes in concepts and definitions shall equal 
     the baseline levels of new budget authority and outlays using 
     up-to-date concepts and definitions minus those levels using 
     the concepts and definitions in effect before such changes. 
     Such changes in concepts and definitions may only be made in 
     consultation with the Committees on Appropriations, the 
     Budget, and Government Reform and Oversight and Governmental 
     Affairs of the House of Representatives and the Senate.
       (B) Changes in net outlays.--Changes in net outlays for all 
     programs and activities exempt from sequestration under 
     section 11204.
       (C) Changes in inflation.--For direct spending under laws 
     and policies enacted or effective on or before July 1, 1997, 
     inflation adjustment factors shall equal the ratio between 
     the level of year-over-year inflation measured for the fiscal 
     year most recently completed and the applicable estimated 
     level for that years as described in section 11105 (relating 
     to economic assumptions). For direct spending under laws and 
     policies enacted or effective after July 1, 1997, there shall 
     be no adjustment to the direct spending caps (for changes in 
     economic conditions including inflation, nor for changes in 
     numbers of eligible beneficiaries) unless--
       (i) the Act or the joint explanatory statement of managers 
     accompanying such Act providing new direct spending includes 
     economic projections and projections of numbers of 
     beneficiaries; and
       (ii) such Act specifically provides for automatic 
     adjustments to the direct spending caps in section 11105 
     based on those projections.
       (D) Changes in eligible populations.--For direct spending 
     under laws and policies enacted or effective on or before 
     July 1, 1997, the basis for adjustments under this section 
     shall be the same as the projections underlying Table A-4, 
     CBO Baseline Projections of Mandatory Spending, Including 
     Deposit Insurance (by fiscal year, in billions of dollars), 
     published in An Analysis of the President's Budgetary 
     Proposals for Fiscal Year 1998, March 1997, page 53. For 
     direct spending under laws and policies enacted or effective 
     after July 1, 1997, there shall be no adjustment to the 
     direct spending caps for changes in numbers of eligible 
     beneficiaries unless--
       (i) the Act or the joint explanatory statement of managers 
     accompanying such Act providing new direct spending includes 
     economic projections and projections of numbers of 
     beneficiaries; and
       (ii) such Act specifically provides for automatic 
     adjustments to the direct spending caps in section 11105 
     based on those projections.
       (E) Intra-budgetary payments.--From discretionary accounts 
     to mandatory accounts. The baseline and the discretionary 
     spending caps shall be adjusted to reflect those changes.
       (c) Changes to Deficit Targets.--The deficit targets in 
     section 11104 shall be adjusted to reflect changes to the 
     revenue targets or changes to the caps for entitlements and 
     other mandatory spending pursuant to subsection (a).
       (d) Permissible Revisions to Deficit and Revenue Targets 
     and Direct Spending Caps.--Deficit and revenue targets and 
     direct spending caps as enacted pursuant to sections 11104 
     and 11105 may be revised as follows: Except as required 
     pursuant to section 11105(a), direct spending caps may only 
     be amended by recorded vote. It shall be a matter of highest 
     privilege in the House of Representatives and the Senate for 
     a Member of the House of Representatives or the Senate to 
     insist on a recorded vote solely on the question of amending 
     such caps. It shall not be in order for the Committee on 
     Rules of the House of Representatives to report a resolution 
     waiving the provisions of this subsection. This subsection 
     may be waived in the Senate only by an affirmative vote of 
     three-fifths of the Members duly chosen and sworn.
                   Subtitle B--Enforcement Provisions

     SEC. 11201. REPORTING EXCESS SPENDING.

       (a) Analysis of Actual Deficit, Revenue, and Spending 
     Levels.--As soon as practicable after any fiscal year, OMB 
     shall compile a statement of actual deficits, revenues, and 
     direct spending for that year. The statement shall identify 
     such spending by categories contained in section 11105.
       (b) Estimate of Necessary Spending Reduction.--Based on the 
     statement provided under subsection (a), the OMB shall issue 
     a report to the President and the Congress on December 15 of 
     any year in which such statement identifies actual or 
     projected deficits, revenues, or spending in the current or 
     immediately preceding fiscal years in violation of the 
     revenue targets or direct spending caps in section 11104 or 
     11105, by more than one percent of the applicable total 
     revenues or direct spending for such year. The report shall 
     include:
       (1) All instances in which actual direct spending has 
     exceeded the applicable direct spending cap.
       (2) The difference between the amount of spending available 
     under the direct spending caps for the current year and 
     estimated actual spending for the categories associated with 
     such caps.
       (3) The amounts by which direct spending shall be reduced 
     in the current fiscal year so that total actual and estimated 
     direct spending for all cap categories for the current and 
     immediately preceding fiscal years shall not exceed the 
     amounts available under the direct spending caps for such 
     fiscal years.
       (4) The amount of excess spending attributable solely to 
     changes in inflation or eligible populations.

     SEC. 11202. ENFORCING DIRECT SPENDING CAPS.

       (a) Purpose.--This subtitle provides enforcement of the 
     direct spending caps on categories of spending established 
     pursuant to section 11105. This section shall apply for any 
     fiscal year in which direct spending exceeds the applicable 
     direct spending cap.
       (b) General Rules.--
       (1) Eliminating a breach.--Each non-exempt account within a 
     category shall be reduced by a dollar amount calculated by 
     multiplying the baseline level of sequestrable budgetary 
     resources in that account at that time by the uniform 
     percentage necessary to eliminate a breach within that 
     category.
       (2) Programs, projects, or activities.--Except as otherwise 
     provided, the same percentage sequestration shall apply to 
     all programs, projects and activities within a budget 
     account.
       (3) Indefinite authority.--Except as otherwise provided, 
     sequestration in accounts for which obligations are 
     indefinite shall be taken in a manner to ensure that 
     obligations in the fiscal year of a sequestration and 
     succeeding fiscal years are reduced, from the level that 
     would actually have occurred, by the applicable sequestration 
     percentage or percentages.
       (4) Cancellation of budgetary resources.--Budgetary 
     resources sequestered from any account other than an trust, 
     special or revolving fund shall revert to the Treasury and be 
     permanently canceled.
       (5) Implementing regulations.--Notwithstanding any other 
     provision of law, administrative rules or similar actions 
     implementing any sequestration shall take effect within 30 
     days after that sequestration.

     SEC. 11203. SEQUESTRATION RULES.

       (a) General Rules.--For programs subject to direct spending 
     caps:
       (1) Triggering of sequestration.--Sequestration is 
     triggered if total direct spending subject to the caps 
     exceeds or is projected to exceed the aggregate cap for 
     direct spending for the current or immediately preceding 
     fiscal year.
       (2) Calculation of reductions.--Sequestration shall reduce 
     spending under each separate direct spending cap in 
     proportion to the amounts each category of direct spending 
     exceeded the applicable cap.
       (3) Uniform percentages.--In calculating the uniform 
     percentage applicable to the sequestration of all spending 
     programs or activities within each category, or the uniform 
     percentage applicable to the sequestration of nonexempt 
     direct spending programs or activities, the sequestrable base 
     for direct spending programs and activities is the total 
     level of outlays for the fiscal year for those programs or 
     activities in the current law baseline.
       (4) Permanent sequestration of direct spending.--
     Obligations in sequestered direct spending accounts shall be 
     reduced in the fiscal year in which a sequestration occurs 
     and in all succeeding fiscal years. Notwithstanding any other 
     provision of this section, after the first direct spending 
     sequestration, any later sequestration shall reduce direct 
     spending by an amount in addition to, rather than in lieu of, 
     the reduction in direct spending in place under the existing 
     sequestration or sequestrations.
       (5) Special rule.--For any direct spending program in 
     which--
       (A) outlays pay for entitlement benefits;
       (B) a current-year sequestration takes effect after the 1st 
     day of the budget year;
       (C) that delay reduces the amount of entitlement authority 
     that is subject to sequestration in the budget; and
       (D) the uniform percentage otherwise applicable to the 
     budget-year sequestration of a program or activity is 
     increased due to the delay;

     then the uniform percentage shall revert to the uniform 
     percentage calculated under paragraph (3) when the budget 
     year is completed.
       (6) Indexed benefit payments.--If, under any entitlement 
     program--
       (A) benefit payments are made to persons or governments 
     more frequently than once a year; and
       (B) the amount of entitlement authority is periodically 
     adjusted under existing law to reflect changes in a price 
     index (commonly called ``cost of living adjustments'');

     sequestration shall first be applied to the cost of living 
     adjustment before reductions are made to the base benefit. 
     For the first fiscal year to which a sequestration applies, 
     the benefit payment reductions in such programs accomplished 
     by the order shall take effect starting with the payment made 
     at the beginning of January following a final sequester. For 
     the purposes of this subsection, veterans' compensation shall 
     be considered a program that meets the conditions of the 
     preceding sentence.
       (7) Loan programs.--For all loans made, extended, or 
     otherwise modified on or after any sequestration under loan 
     programs subject to direct spending caps--
       (A) the sequestrable base shall be total fees associated 
     with all loans made extended or otherwise modified on or 
     after the date of sequestration; and

[[Page H4406]]

       (B) the fees paid by borrowers shall be increased by a 
     uniform percentage sufficient to produce the dollar savings 
     in such loan programs for the fiscal year or years of the 
     sequestrations required by this section.

     Notwithstanding any other provision of law, in any year in 
     which a sequestration is in effect, all subsequent fees shall 
     be increased by the uniform percentage and all proceeds from 
     such fees shall be paid into the general fund of the 
     Treasury.
       (8) Insurance programs.--Any sequestration of a Federal 
     program that sells insurance contracts to the public 
     (including the Federal Crop Insurance Fund, the National 
     Insurance Development Fund, the National Flood Insurance 
     fund, insurance activities of the Overseas Private Insurance 
     Corporation, and Veterans' Life insurance programs) shall be 
     accomplished by increasing premiums on contracts entered into 
     extended or otherwise modified, after the date a 
     sequestration order takes effect by the uniform sequestration 
     percentage. Notwithstanding any other provision of law, for 
     any year in which a sequestration affecting such programs is 
     in effect, subsequent premiums shall be increased by the 
     uniform percentage and all proceeds from the premium increase 
     shall be paid from the insurance fund or account to the 
     general fund of the Treasury.
       (9) State grant formulas.--For all State grant programs 
     subject to direct spending caps--
       (A) the total amount of funds available for all States 
     shall be reduced by the amount required to be sequestered; 
     and
       (B) if States are projected to receive increased funding in 
     the budget year compared to the immediately preceding fiscal 
     year, sequestration shall first be applied to the estimated 
     increases before reductions are made compared to actual 
     payments to States in the previous year--
       (i) the reductions shall be applied first to the total 
     estimated increases for all States; then
       (ii) the uniform reduction shall be made from each State's 
     grant; and
       (iii) the uniform reduction shall apply to the base funding 
     levels available to states in the immediately preceding 
     fiscal year only to the extent necessary to eliminate any 
     remaining excess over the applicable direct spending cap.
       (10) Special rule for certain programs.--Except matters 
     exempted under section 11204 and programs subject to special 
     rules set forth under section 11205 and notwithstanding any 
     other provisions of law, any sequestration required under 
     this Act shall reduce benefit levels by an amount sufficient 
     to eliminate all excess spending identified in the report 
     issued pursuant to section 11201, while maintaining the same 
     uniform percentage reduction in the monetary value of 
     benefits subject to reduction under this subsection.
       (b) Within-Session Sequester.--If a bill or resolution 
     providing direct spending for the current year is enacted 
     before July 1 of that fiscal year and causes a breach within 
     any direct spending cap for that fiscal year, 15 days later 
     there shall be a sequestration to eliminate that breach 
     within that cap.

     SEC. 11204. ENFORCING REVENUE TARGETS.

       (a) Purpose.--This section enforces the revenue targets 
     established pursuant to section 11104. This section shall 
     apply for any year in which actual revenues were less than 
     the applicable revenue target in the preceding fiscal year or 
     are projected to be less than the applicable revenue target 
     in the current year.
       (b) Estimate of Necessity To Suspend New Revenue 
     Reductions.--Based on the statement provided under section 
     11201(a), OMB shall issue a report to the President and the 
     Congress on December 15 of any year in which such statement 
     identifies actual or projected revenues in the current or 
     immediately preceding fiscal years lower than the applicable 
     revenue target in section 11104, as adjusted pursuant to 
     section 11106, by more than 1 percent of the applicable total 
     revenue target for such year. The report shall include--
       (1) all laws and policies described in subsection (c) which 
     would cause revenues to decline in the calendar year which 
     begins January 1 compared to the provisions of law in effect 
     on December 15;
       (2) the amounts by which revenues would be reduced by 
     implementation of the provisions of law described in 
     paragraph (1) compared to provisions of law in effect on 
     December 15; and
       (3) whether delaying implementation of the provisions of 
     law described in paragraph (1) would cause the total for 
     revenues in the projected revenues in the current fiscal year 
     and actual revenues in the immediately preceding fiscal year 
     to equal or exceed the total of the targets for the 
     applicable years.
       (c) No Credits, Deductions, Exclusions, Preferential Rate 
     of Tax, Etc.--If any provision of the Internal Revenue Code 
     of 1986 added by the Revenue Reconciliation Act of 1997 would 
     (but for this section) first take effect in a tax benefit 
     suspension year, such provision shall not take effect until 
     the first calendar year which is not a tax benefit suspension 
     year.
       (d) End of Suspension.--If the OMB report issued under 
     subsection (a) following a tax benefit suspension year 
     indicates that the total of revenues projected in the current 
     fiscal year and actual revenues in the immediately preceding 
     year will equal or exceed the applicable targets the 
     President shall sign an order ending the delayed phase-in of 
     new tax cuts effective January 1. Such order shall provide 
     that the new tax cuts shall take effect as if the provisions 
     of this section had not taken effect.
       (e) Suspension of Benefits Being Phased In.--If, under any 
     provision of the Internal Revenue Code of 1986, there is an 
     increase in any benefit which would (but for this section) 
     take effect with respect to a tax benefit suspension year, in 
     lieu of applying subsection (c)--
       (1) any increase in the benefit under such section with 
     respect to such year and each subsequent calendar year shall 
     be delayed 1 calendar year, and
       (2) the level of benefit under such section with respect to 
     the prior calendar year shall apply to such tax benefit 
     suspension year.
       (f) Percentage Suspension Where Full Suspension Unnecessary 
     To Achieve Revenue Target.--If the application of subsections 
     (c), (d), and (e) to any tax benefit suspension year would 
     (but for this subsection) cause revenues to decline in the 
     calendar year which begins January 1 compared to the 
     provisions of law in effect on December 15; subsections (c) 
     (d) and (e) shall be applied such that the amount of each 
     benefit which is denied is only the percentage of such 
     benefit which is necessary to result in revenues equal to 
     such target. Such percentage shall be determined by OMB, and 
     the same percentage shall apply to such benefits.
       (g) Tax Benefit Suspension Year.--For purposes of this 
     section, the term ``tax benefit suspension year'' means any 
     calendar year if the statement issued under subsection (b) 
     during the preceding calendar year indicates that--
       (1) for the fiscal year ending in such preceding calendar 
     year, actual revenues were lower than the applicable revenue 
     target in section 11104, as adjusted pursuant to section 
     11106, for such fiscal year by more than 1 percent of such 
     target, or
       (2) for the fiscal year beginning in such preceding 
     calendar year, projected revenues (determined without regard 
     to this section) are estimated to be lower than the 
     applicable revenue target in section 11104, as adjusted 
     pursuant to section 11106, for such fiscal year by more than 
     1 percent of such target.

     SEC. 11205. EXEMPT PROGRAMS AND ACTIVITIES.

       The following budget accounts, activities within accounts, 
     or income shall be exempt from sequestration--
       (1) net interest;
       (2) all payments to trust funds from excise taxes or other 
     receipts or collections properly creditable to those trust 
     funds;
       (3) offsetting receipts and collections;
       (4) all payments from one Federal direct spending budget 
     account to another Federal budget account;
       (5) all intragovernmental funds including those from which 
     funding is derived primarily from other Government accounts;
       (6) expenses to the extent they result from private 
     donations, bequests, or voluntary contributions to the 
     Government;
       (7) nonbudgetary activities, including but not limited to--
       (A) credit liquidating and financing accounts;
       (B) the Pension Benefit Guarantee Corporation Trust Funds;
       (C) the Thrift Savings Fund;
       (D) the Federal Reserve System; and
       (E) appropriations for the District of Columbia to the 
     extent they are appropriations of locally raised funds;
       (8) payments resulting from Government insurance, 
     Government guarantees, or any other form of contingent 
     liability, to the extent those payments result from 
     contractual or other legally binding commitments of the 
     Government at the time of any sequestration;
       (9) the following accounts, which largely fulfill 
     requirements of the Constitution or otherwise make payments 
     to which the Government is committed--
       Bureau of Indian Affairs, miscellaneous trust funds, tribal 
     trust funds (14-9973-0-7-999);
       Claims, defense;
       Claims, judgments and relief act (20-1895-0-1-806);
       Compact of Free Association, economic assistance pursuant 
     to Public Law 99-658 (14-0415-0-1-806);
       Compensation of the President (11-0001-0-1-802);
       Customs Service, miscellaneous permanent appropriations 
     (20-9992-0-2-852);
       Eastern Indian land claims settlement fund (14-2202-0-1-
     806);
       Farm Credit System Financial Assistance Corporation, 
     interest payments (20-1850-0-1-351);
       Internal Revenue collections of Puerto Rico (20-5737-0-2-
     852);
       Payments of Vietnam and USS Pueblo prisoner-of-war claims 
     (15-0104-0-1-153):
       Payments to copyright owners (03-5175-0-2-376);
       Salaries of Article III judges (not including cost of 
     living adjustments);
       Soldier's and Airman's Home, payment of claims (84-8930-0-
     7-705);
       Washington Metropolitan Area Transit Authority, interest 
     payments (46-0300-0-1-401);
       (10) the following noncredit special, revolving, or trust-
     revolving funds--
       Exchange Stabilization Fund (20-4444-0-3-155); and
       Foreign Military Sales trust fund (11-82232-0-7-155).
       (j) Optional Exemption of Military Personnel.--
       (1) The President may, with respect to any military 
     personnel account, exempt that account from sequestration or 
     provide for a

[[Page H4407]]

     lower uniform percentage reduction that would otherwise 
     apply.
       (2) The President may not use the authority provided by 
     paragraph (1) unless he notifies the Congress of the manner 
     in which such authority will be exercised on or before the 
     initial snapshot date for the budget year.

     SEC. 11206. SPECIAL RULES.

       (a) Child Support Enforcement Program.--Any sequestration 
     order shall accomplish the full amount of any required 
     reduction in payments under sections 455 and 458 of the 
     Social Security Act by reducing the Federal matching rate for 
     State administrative costs under the program, as specified 
     (for the fiscal year involved) in section 455(a) of such Act, 
     to the extent necessary to reduce such expenditures by that 
     amount.
       (b) Commodity Credit Corporation.--
       (1) Effective date.--For the Commodity Credit Corporation, 
     the date on which a sequestration order takes effect in a 
     fiscal year shall vary for each crop of a commodity. In 
     general, the sequestration order shall take effect when 
     issued, but for each crop of a commodity for which 1-year 
     contracts are issued as an entitlement, the sequestration 
     order shall take effect with the start of the sign-up period 
     for that crop that begins after the sequestration order is 
     issued. Payments for each contract in such a crop shall be 
     reduced under the same terms and conditions.
       (2) Dairy program.--
       (A) As the sole means of achieving any reduction in outlays 
     under the milk price-support program, the Secretary of 
     Agriculture shall provide for a reduction to be made in the 
     price received by producers for all milk in the United States 
     and marketed by producers for commercial use.
       (B) That price reduction (measured in cents per hundred-
     weight of milk marketed) shall occur under subparagraph (A) 
     of section 201(d)(2) of the Agricultural Act of 1949 (7 
     U.S.C. 1446(d)(2)(A)), shall begin on the day any 
     sequestration order is issued, and shall not exceed the 
     aggregate amount of the reduction in outlays under the milk 
     price-support program, that otherwise would have been 
     achieved by reducing payments made for the purchase of milk 
     or the products of milk under this subsection during that 
     fiscal year.
       (3) Effect of delay.--For purposes of subsection (b)(1), 
     the sequestrable base for Commodity Credit Corporation is the 
     current-year level of gross outlays resulting from new budget 
     authority that is subject to reduction under paragraphs (1) 
     and (2).
       (4) Certain authority not to be limited.--Nothing in this 
     Act shall restrict the Corporation in the discharge of its 
     authority and responsibility as a corporation to buy and sell 
     commodities in world trade, or limit or reduce in any way any 
     appropriation that provides the Corporation with funds to 
     cover its realized losses.
       (c) Earned Income Tax Credit.--
       (1) The sequestrable base for earned income tax credit 
     program is the dollar value of all current year benefits to 
     the entire eligible population.
       (2) In the event sequestration is triggered to reduce 
     earned income tax credits, all earned income tax credits 
     shall be reduced, whether or not such credits otherwise would 
     result in cash payments to beneficiaries, by a uniform 
     percentage sufficient to produce the dollar savings required 
     by the sequestration.
       (d) Regular and Extended Unemployment Compensation.--
       (1) A State may reduce each weekly benefit payment made 
     under the regular and extended unemployment benefit programs 
     for any week of unemployment occurring during any period with 
     respect to which payments are reduced under any sequestration 
     order by a percentage not to exceed the percentage by which 
     the Federal payment to the State is to be reduced for such 
     week as a result of such order.
       (2) A reduction by a State in accordance with paragraph (1) 
     shall not be considered as a failure to fulfill the 
     requirements of section 3304(a)(11) of the Internal Revenue 
     Code of 1986.
       (e) Federal Employees Health Benefits Fund.-- For the 
     Federal Employees Health Benefits Fund, a sequestration order 
     shall take effect with the next open season. The 
     sequestration shall be accomplished by annual payments from 
     that Fund to the General Fund of the Treasury. Those annual 
     payments shall be financed solely by charging higher 
     premiums. The sequestrable base for the Fund is the current-
     year level of gross outlays resulting from claims paid after 
     the sequestration order takes effect.
       (f) Federal Housing Finance Board.-- Any sequestration of 
     the Federal Housing Board shall be accomplished by annual 
     payments (by the end of each fiscal year) from that Board to 
     the general fund of the Treasury, in amounts equal to the 
     uniform sequestration percentage for that year times the 
     gross obligations of the Board in that year.
       (g) Federal Pay.--
       (1) In general.-- New budget authority to pay Federal 
     personnel from direct spending accounts shall be reduced by 
     the uniform percentage calculated under section 11203(c)(3), 
     as applicable, but no sequestration order may reduce or have 
     the effect of reducing the rate of pay to which any 
     individual is entitled under any statutory pay system (as 
     increased by any amount payable under section 5304 of title 
     5, United States Code, or any increase in rates of pay which 
     is scheduled to take effect under section 5303 of title 5, 
     United States Code, section 1109 of title 37, United States 
     Code, or any other provision of law.
       (2) Definitions.--For purposes of this subsection--
       (A) the term ``statutory pay system'' shall have the 
     meaning given that term in section 5302(1) of title 5, United 
     States Code;
      term ``elements of military pay'' means--
       (i) the elements of compensation of members of the 
     uniformed services specified in section 1009 of title 37, 
     United States Code;
       (ii) allowances provided members of the uniformed services 
     under sections 403(a) and 405 of such title; and
       (iii) cadet pay and midshipman pay under section 203(c) of 
     such title; and
       (B) the term ``uniformed services'' shall have the same 
     meaning given that term in section 101(3) of title 37, United 
     States Code.
       (h) Medicare.--
       (1) Timing of application of reductions.--
       (A) In general.-- Except as provided in subparagraph (B), 
     if a reduction is made in payment amounts pursuant to 
     sequestration order, the reduction shall be applied to 
     payment for services furnished after the effective date of 
     the order. For purposes of the previous sentence, in the case 
     of inpatient services furnished for an individual, the 
     services shall be considered to be furnished on the date of 
     the individual's discharge from the inpatient facility.
       (B) Payment on the basis of cost reporting periods.-- In 
     the case in which payment for services of a provider of 
     services is made under title XVIII of the Social Security Act 
     on a basis relating to the reasonable cost incurred for the 
     services during a cost reporting period of the provider, if a 
     reduction is made in payment amounts pursuant to a 
     sequestration order, the reduction shall be applied to 
     payment for costs for such services incurred at any time 
     during each cost reporting period of the provider any part of 
     which occurs after the effective date of order, but only (for 
     each such cost reporting period) in the same proportion as 
     the fraction of the cost reporting period that occurs after 
     the effective date of the order.
       (2) No increase in beneficiary charges in assignment-
     related cases.--If a reduction in payment amounts is made 
     pursuant to a sequestration order for services for which 
     payment under part B of title XVIII of the Social Security 
     Act is made on the basis of an assignment described in 
     section 1842(b)(3)(B)(ii), in accordance with section 
     1842(b)(6)(B), or under the procedure described in section 
     1870(f)(1) of such Act, the person furnishing the services 
     shall be considered to have accepted payment of the 
     reasonable charge for the services, less any reduction in 
     payment amount made pursuant to a sequestration order, as 
     payment in full.
       (3) Part b premiums.--In computing the amount and method of 
     sequestration from part B of title XVIII of the Social 
     Security Act--
       (A) the amount of sequestration shall be calculated by 
     multiplying the total amount by which Medicare spending 
     exceeds the appropriate spending cap by a percentage that 
     reflects the ratio of total spending under Part B to total 
     Medicare spending; and
       (B) sequestration in the Part B program shall be 
     accomplished by increasing premiums to beneficiaries.
       (4) No effect on computation of aapcc.--In computing the 
     adjusted average per capita cost for purposes of section 
     1876(a)(4) of the Social Security Act, 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.
       (i) Postal Service Fund.-- Any sequestration of the Postal 
     Service Fund shall be accomplished by annual payments from 
     that Fund to the General Fund of the Treasury, and the 
     Postmaster General of the United States and shall have the 
     duty to make those payments during the first fiscal year to 
     which the sequestration order applies and each succeeding 
     fiscal year. The amount of each annual payment shall be--
       (1) the uniform sequestration percentage, times
       (2) the estimated gross obligations of the Postal Service 
     Fund in that year other than those obligations financed with 
     an appropriation for revenue forgone that year.

     Any such payment for a fiscal year shall be made as soon as 
     possible during the fiscal year, except that it may be made 
     in installments within that year if the payment schedule is 
     approved by the Secretary of the Treasury. Within 30 days 
     after the sequestration order is issued, the Postmaster 
     General shall submit to the Postal Rate Commission a plan for 
     financing the annual payment for that fiscal year and publish 
     that plan in the Federal Register. The plan may assume 
     efficiencies in the operation of the Postal Service, 
     reductions in capital expenditures, increases in the prices 
     of services, or any combination, but may not assume a lower 
     Fund surplus or higher Fund deficit and shall follow the 
     requirements of existing law governing the Postal Service in 
     all other respects. Within 30 days of the receipt of that 
     plan, the Postal Rate Commission shall approve the plan or 
     modify it in the manner that modifications are allowed under 
     current law. If the Postal Rate Commission does not respond 
     to the plan within 30 days, the plan submitted by the 
     Postmaster General shall go into effect. Any plan may be 
     later revised by the submission of a new plan to the Postal 
     Rate Commission, which may approve or modify it.

[[Page H4408]]

       (j) Power Marketing Administrations and T.V.A.-- Any 
     sequestration of the Department of Energy power marketing 
     administration funds or the Tennessee Valley Authority fund 
     shall be accomplished by annual payments from those funds to 
     the General Fund of the Treasury, and the administrators of 
     those funds shall have the duty to make those payments during 
     the fiscal year to which the sequestration order applies and 
     each succeeding fiscal year. The amount of each payment by a 
     fund shall be--
       (1) the direct spending uniform sequestration percentage, 
     times
       (2) the estimated gross obligations of the fund in that 
     year other than those obligations financed from discretionary 
     appropriations for that year.

     Any such payment for a fiscal year shall be made as soon as 
     possible during the fiscal year, except that it may be made 
     in installments within that year if the payment schedule is 
     approved by the Secretary of the Treasury. Annual payments by 
     a fund may be financed by reductions in costs required to 
     produce the pre-sequester amount of power (but those 
     reductions shall not include reductions in the amount of 
     power supplied by the fund), by reductions in capital 
     expenditures, by increases in tax rates, or by any 
     combination, but may not be financed by a lower fund surplus, 
     a higher fund deficit, additional borrowing, delay in 
     repayment of principal on outstanding debt and shall follow 
     the requirements of existing law governing the fund in all 
     other respects. The administrator of a fund or the TVA Board 
     is authorized to take the actions specified in this 
     subsection in order to make the annual payments to the 
     Treasury.
       (k) Business-like Transactions.--Notwithstanding any other 
     provision of law, for programs which provide a business-like 
     service in exchange for a fee, sequestration shall be 
     accomplished through a uniform increase in fees (sufficient 
     to produce the dollar savings in such programs for the fiscal 
     year of the sequestration required by section 11201(a)(2), 
     all subsequent fees shall be increased by the same 
     percentage, and all proceeds from such fees shall be paid 
     into the general fund of the Treasury, in any year for which 
     a sequester affecting such programs are in effect.

     SEC. 11207. THE CURRENT LAW BASELINE.

       (a) Submission of Reports.--CBO and OMB shall submit to the 
     President and the Congress reports setting forth the budget 
     baselines for the budget year and the next nine fiscal years. 
     The CBO report shall be submitted on or before January 15. 
     The OMB report shall accompany the President's budget.
       (b) Determination of the Budget Baseline.--(1) The budget 
     baseline shall be based on the common economic assumptions 
     set forth in section 11106, adjusted to reflect revisions 
     pursuant to subsection (c).
       (2) The budget baseline shall consist of a projection of 
     current year levels of budget authority, outlays, revenues 
     and the surplus or deficit into the budget year and the 
     relevant outyears based on current enacted laws as of the 
     date of the projection.
       (3) For discretionary spending items, the baseline shall be 
     the spending caps in effect pursuant to section 601(a)(2) of 
     the Congressional Budget Act of 1974. For years for which 
     there are no caps, the baseline for discretionary spending 
     shall be the same as the last year for which there were 
     statutory caps.
       (4) For all other expenditures and for revenues, the 
     baseline shall be adjusted by comparing unemployment, 
     inflation, interest rates, growth and other economic 
     indicators-and changes ineligible population-for the most 
     recent period for which actual data are available, compared 
     to the assumptions contained in section 11106.
       (c) Revisions to the Baseline.--The baseline shall be 
     adjusted for up-to-date economic assumptions when CBO submits 
     its Economic and Budget Update and when OMB submits its 
     budget update, and by August 1 each year, when CBO and OBM 
     submit their midyear reviews.

     SEC. 11208. LIMITATIONS ON EMERGENCY SPENDING.

       (a) In General.--(1) Within the discretionary caps for each 
     fiscal year contained in this Act, an amount shall be 
     withheld from allocation to the appropriate committees of the 
     House of Representatives and of the Senate and reserved for 
     natural disasters and other emergency purposes.
       (2) Such amount for each such fiscal year shall not be less 
     than 1 percent of total budget authority and outlays 
     available within those caps for that fiscal year.
       (3) The amounts reserved pursuant to this subsection shall 
     be made available for allocation to such committees only if--
       (A) the President has made a request for such disaster 
     funds;
       (B) the programs to be funded are included in such request; 
     and
       (C) the projected obligations for unforeseen emergency 
     needs exceed the 10-year rolling average annual expenditures 
     for existing programs included in the Presidential request 
     for the applicable fiscal year.
       (4) Notwithstanding any other provision of law--
       (A) States and localities shall be required to maintain 
     effort and ensure that Federal assistance payments do not 
     replace, subvert or otherwise have the effect of reducing 
     regularly budgeted State and local expenditures for law 
     enforcement, refighting, road construction and maintenance, 
     building construction and maintenance or any other category 
     of regular government expenditure (to ensure that Federal 
     disaster payments are made only for incremental costs 
     directly attributable to unforeseen disasters, and do not 
     replace or reduce regular State and local expenditures for 
     the same purposes);
       (B) the President may not take administrative action to 
     waive any requirement for States or localities to make 
     minimum matching payments as a condition or receiving Federal 
     disaster assistance and prohibit the President from taking 
     administrative action to waive all or part of any repayment 
     of Federal loans for the State or local matching share 
     required as a condition of receiving Federal disaster 
     assistance, and this clause shall apply to all matching share 
     requirements and loans to meet matching share requirements 
     under the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5121 et seq.) and any other Acts 
     pursuant to which the President may declare a disaster or 
     disasters and States and localities otherwise qualify for 
     Federal disaster assistance; and
       (C) a two-thirds vote in each House of Congress shall be 
     required for each emergency to reduce or waive the State 
     matching requirement of to forgive all or part of loans for 
     the State matching share as required under the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act.
       (b) Effect Budget Resolutions.--(1) All concurrent 
     resolutions on the budget (including revisions) shall specify 
     the amount of new budget authority and outlays within the 
     discretionary spending cap that shall be withheld from 
     allocation to the committees and reserved for natural 
     disasters, and a procedure for releasing such funds for 
     allocation to the appropriate committee. The amount withheld 
     shall be equal to 1 percent of the total discretionary 
     spending cap for fiscal year covered by the resolution, 
     unless additional amounts are specified.
       (2) The procedure for allocation of the amounts pursuant to 
     paragraph (1) shall ensure that the funds are released for 
     allocation only pursuant to the conditions contained in 
     subsection (a)(3)(A) through (C).
       (c) Restriction on Use of Funds.--Notwithstanding any other 
     provision of law, the amount reserved pursuant to subsection 
     (a) shall not be available for other than emergency funding 
     requirements for particular natural disasters or national 
     security emergencies so designated by Acts of Congress.
       (d) New Point of Order.--(1) Title IV of the Congressional 
     Budget Act of 1974 is amended by adding at the end the 
     following new section:


                 ``point of order regarding emergencies

       ``Sec. 408. It shall not be in order in the House of 
     Representatives or the Senate to consider any bill or joint 
     resolution, or amendment thereto or conference report 
     thereon, containing an emergency designation for purposes of 
     section 251(b)(2)(D) or 252(e) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 or of section 11207 of 
     the Balanced Budget Assurance Act of 1997 if it also provides 
     an appropriation or direct spending for any other item or 
     contains any other matter, but that bill or joint resolution, 
     amendment, or conference report may contain rescissions of 
     budget authority or reductions of direct spending, or that 
     amendment may reduce amounts for that emergency.''.
       (2) The table of contents set forth in section 1(b) of the 
     Congressional Budget and Impoundment Control Act of 1974 is 
     amended by inserting after the item relating to section 407 
     the following new item:

``Sec. 408. Point of order regarding emergencies.''.
                                                                    ____



                  Amendment to H.R. 2015, as Reported

                  Offered by Mr. Taylor of Mississippi

       At the end of title IV, add the following new subtitle:
           Subtitle J--Uniformed Services Medicare Subvention

     SEC. 4901. DEFINITIONS.

       For purposes of this subtitle:
       (1) Medicare-eligible covered military beneficiary.--The 
     term ``medicare-eligible covered military beneficiary'' means 
     a beneficiary under chapter 55 of title 10, United States 
     Code, who--
       (A) is entitled to hospital insurance benefits under part A 
     of title XVIII of the Social Security Act (42 U.S.C. 1395c et 
     seq.); and
       (B) is enrolled in the supplementary medical insurance 
     program under part B of such title (42 U.S.C. 1395j et seq.).
       (2) TRICARE program.--The term ``TRICARE program'' means 
     the managed health care program that is established by the 
     Secretary of Defense under the authority of chapter 55 of 
     title 10, United States Code, principally section 1097 of 
     such title, and includes the competitive selection of 
     contractors to financially underwrite the delivery of health 
     care services under the Civilian Health and Medical Program 
     of the Uniformed Services.
       (3) Subvention program.--The term ``subvention program'' 
     means the program established under section 4902 to reimburse 
     the Department of Defense, from the medicare program under 
     title XVIII of the Social Security Act (42 U.S.C. 1395 et 
     seq.), for health care services provided to medicare-eligible 
     covered military beneficiaries through the managed care 
     option of the TRICARE program.
       (4) Secretaries.--The term ``Secretaries'' means the 
     Secretary of Defense and the Secretary of Health and Human 
     Services acting jointly.

[[Page H4409]]

     SEC. 4902. ESTABLISHMENT OF SUBVENTION PROGRAM.

       (a) Establishment Required.--The Secretary of Defense and 
     the Secretary of Health and Human Services shall jointly 
     establish a program to provide the Department of Defense with 
     reimbursement, beginning October 1, 1997, in accordance with 
     section 4903, from the medicare program under title XVIII of 
     the Social Security Act (42 U.S.C. 1395 et seq.) for health 
     care services provided to medicare-eligible covered military 
     beneficiaries who agree to receive the health care services 
     through the managed care option of the TRICARE program.
       (b) Voluntary Enrollment.--For purposes of the subvention 
     program, enrollment of medicare-eligible covered military 
     beneficiaries in the managed care option of the TRICARE 
     program shall be voluntary, except that the total number of 
     medicare-eligible covered military beneficiaries so enrolled 
     shall be subject to the capacity and funding limitations 
     specified in section 4903.
       (c) Effect of Enrollment.--In the case of a medicare-
     eligible covered military beneficiary who enrolls in the 
     managed care option of the TRICARE program, payments may not 
     be made under title XVIII of the Social Security Act (42 
     U.S.C. 1395 et seq.) other than under the subvention program 
     for health care services provided through the managed care 
     option, except that the Secretaries may provide exceptions 
     for emergencies or other situations as the Secretaries 
     consider appropriate.
       (d) TRICARE Program Enrollment Fee Waiver.--The Secretary 
     of Defense shall waive the enrollment fee applicable to any 
     medicare-eligible covered military beneficiary enrolled in 
     the managed care option of the TRICARE program for whom 
     reimbursement may be made under section 4903.
       (e) Modification of TRICARE Contracts.--In carrying out the 
     subvention program, the Secretary of Defense may amend 
     existing TRICARE program contracts as may be necessary to 
     incorporate provisions specifically applicable to medicare-
     eligible covered military beneficiaries who enroll in the 
     managed care option of the TRICARE program.
       (f) Cost Sharing.--The Secretary of Defense may establish 
     cost sharing requirements for medicare-eligible covered 
     military beneficiaries who enroll in the managed care option 
     of the TRICARE program and for whom reimbursement may be made 
     under section 4903.
       (g) Expansion of Subvention Program.--The Secretaries may 
     expand the subvention program to incorporate health care 
     services provided to medicare-eligible covered military 
     beneficiaries under the fee-for-service options of the 
     TRICARE program if, in the report submitted under section 713 
     of the National Defense Authorization Act for Fiscal Year 
     1997 (Public Law 104-106; 110 Stat. 2591), the Secretaries 
     determined that such expansion is feasible and advisable.

     SEC. 4903. DETERMINATION OF REIMBURSEMENT AMOUNTS.

       (a) Reimbursement of Department of Defense.--
       (1) Basis of payments.--Beginning October 1, 1997, monthly 
     payments to the Department of Defense under the subvention 
     program shall be made from the medicare program under title 
     XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) on 
     the basis that payments are made under section 1876(a) of the 
     such Act (42 U.S.C. 1395mm(a)).
       (2) Amount of payments.--The Secretary of Health and Human 
     Services shall make payments to the Department of Defense 
     from the Federal Hospital Insurance Trust Fund and the 
     Federal Supplementary Medical Insurance Trust Fund (allocated 
     by the Secretary of Health and Human Services between each 
     trust fund based on the relative weight that each trust fund 
     contributes to the required payment) at a per capita rate 
     equal to 93 percent of the applicable adjusted average per 
     capita cost for each medicare-eligible covered military 
     beneficiary enrolled in the managed care option of the 
     TRICARE program in excess of the number of such beneficiaries 
     calculated under subsection (b) for the Department of Defense 
     maintenance of health care effort.
       (b) Maintenance of Defense Health Care Effort.--
       (1) Maintenance of effort required.--The Secretary of 
     Defense shall maintain the Department of Defense health care 
     efforts for medicare-eligible covered military beneficiaries 
     so as to avoid imposing on the medicare program those costs 
     that the Department of Defense would be expected to incur to 
     provide health care services to medicare-eligible covered 
     military beneficiaries in the absence of the subvention 
     program.
       (2) Estimate of prior effort.--For the first fiscal year of 
     the subvention program, the Secretaries shall estimate the 
     amount expended by the Department of Defense for fiscal year 
     1997 for providing health care items and services (other than 
     pharmaceuticals provided to outpatients) to medicare-eligible 
     covered military beneficiaries. For subsequent fiscal years, 
     the amount so estimated shall be adjusted for inflation, for 
     differences between estimated and actual amounts expended, 
     and for changes in the Department of Defense health care 
     budget that exceed $100,000,000.
       (3) Target for defense effort.--On the basis of the 
     estimate made under paragraph (2), the Secretaries shall 
     establish monthly targets of the number of medicare-eligible 
     covered military beneficiaries for whom reimbursement will 
     not be provided to the Department of Defense under subsection 
     (a).
       (c) Protection of Medicare Program Against Increased 
     Costs.--
       (1) Purpose.--The purpose of this subsection is to protect 
     the medicare program against costs incurred under subsection 
     (a) in connection with the provision of health care services 
     to medicare-eligible covered military beneficiaries that 
     would not have been incurred by the medicare program in the 
     absence of the reimbursement requirement.
       (2) Review by comptroller general.--Not later than December 
     31 of each year, the Comptroller General shall determine and 
     submit to the Secretaries and Congress a report on the 
     extent, if any, to which the costs of the Secretary of 
     Defense under the TRICARE program and the costs of the 
     Secretary of Health and Human Services under the medicare 
     program have increased as a result of the subvention program.
       (3) Actions to prevent increased costs.--If the Secretaries 
     determine that the trust funds under title XVIII of the 
     Social Security Act (42 U.S.C. 1395 et seq.) still incur 
     excess costs as a result of the subvention program, the 
     Secretaries shall take such steps as may be necessary to 
     offset those excess costs (and prevent future excess costs), 
     including suspension or termination of the subvention 
     program, adjustment of the payment rate under subsection 
     (a)(2), or an adjustment of the maintenance of effort 
     requirements of the Department of Defense under subsection 
     (b).
                                                                    ____



     Amendment to H.R. --, as Reported, Offered by Mr. Kennedy of 
                             Massachusetts.

      (Amendment to Child Health Budget Reconciliation Provision)

       In section 3502, in the section 2103(b)(2) of the Social 
     Security Act as added by such section, insert before the 
     period at the end the following: ``, plus the average number 
     of low-income children who have such coverage in the fiscal 
     year, as estimated by the Secretary, only pursuant to a 
     State-only funded health coverage program or pursuant to an 
     optional expansion of coverage under the State's medicaid 
     plan under title XIX''.
                                                                    ____



 Amendment to Tax Reconciliation Provisions Offered by Mr. McDermott of 
                       washington and Mr. Matsui

       Strike section 934 of the bill (relating to standards for 
     determining whether individuals are not employees).
                                                                    ____



  Amendment to H.R.-- , as Reported, Offered by Mr. Nadler of New York

            (Offered to Medicare Reconciliation Provisions)

       In section 3461(a)(3), in the paragraph (64)(A)(i) inserted 
     by such section, by inserting before the semicolon at the end 
     the following: ``and so that coverage of services and 
     treatment is not denied if they are determined to be 
     medically necessary in the professional opinion of the 
     treating health care provider, in consultation with the 
     individual''.
       In sections 4001 and 10001, in the section 1852(d)(1) 
     inserted by each such section, amend subparagraph (D) to read 
     as follows:
       ``(D) the organization provides coverage of services and 
     treatment of appropriate providers, including credentialed 
     specialists when such treatment and services are determined 
     to be medically necessary in the professional opinion of the 
     treating health care provider, in consultation with the 
     individual; and
                                                                    ____



 Amendment to H.R.--, as Reported, Offered by Mr. Nadler of New York, 
                Ms. Maloney of New York, and Mr. Schumer

       Strike section 7002 (relating to the sale of Governor's 
     Island, New York) and redesignate subsequent sections of 
     title VII accordingly.
       Subtitle B of title III is amended by adding at the end the 
     following:

     SEC. 3102. SALE OF PETROLEUM PRODUCTS FROM WEEKS ISLAND 
                   FACILITY.

       In fiscal year 2002, the Secretary of Energy shall sell 
     73,000,000 barrels of petroleum product from the Weeks Island 
     facility of the Strategic Petroleum Reserve.
                                                                    ____



 amendment to the budget reconciliation bill offered by representative 
                            sander m. levin

       Strike subtitle D of title IX and insert the following:

     Subtitle D--Restricting Welfare and Public Benefits for Aliens

     SEC. 9301. EXCEPTION FOR CERTAIN DISABLED INDIVIDUALS FROM 
                   RESTRICTIONS ON SUPPLEMENTAL SECURITY INCOME 
                   AND MEDICAID PROGRAM PARTICIPATION BY QUALIFIED 
                   ALIENS.

       (a) SSI Exception.--Section 402(a)(2) of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996 is amended by redesignating subparagraph (D) as 
     subparagraph (E), and by inserting after subparagraph (C) the 
     following new subparagraph:
       ``(D) SSI exception for certain disabled aliens.--With 
     respect to the program specified in paragraph (3)(A), 
     paragraph (1) shall not apply to a qualified alien--
       ``(i) who is blind or disabled within the meaning of 
     section 1614(a)(2) or 1614(a)(3), respectively, of the Social 
     Security Act; and
       ``(ii) who, prior to August 23, 1996, was lawfully admitted 
     for permanent residence or

[[Page H4410]]

     had otherwise obtained an immigration status included in the 
     definition of `qualified alien' under section 431.''.
       (b) Medicaid Exception.--Section 402(b)(2) of such Act is 
     amended by redesignating subparagraph (D) as subparagraph 
     (E), and by inserting after subparagraph (C) the following 
     new subparagraph:
       ``(D) Medicaid exception for certain disabled aliens.--With 
     respect to the program specified in paragraph (3)(C), 
     paragraph (1) shall not apply to a qualified alien who is an 
     individual described in subsection (a)(2)(D).''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect as though they had been included in the 
     enactment of section 402 of the Personal Responsibility and 
     Work Opportunity Reconciliation Act of 1996.

     SEC. 9302. 2-YEAR EXTENSION OF 5-YEAR EXCEPTIONS FOR REFUGEES 
                   AND CERTAIN OTHER QUALIFIED ALIENS FROM BANS ON 
                   ELIGIBILITY FOR SSI AND MEDICAID.

       (a) SSI.--Section 402(a)(2)(A) of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996 is amended in the matter preceding clause (i) by 
     inserting ``, in the case of the Federal program specified in 
     paragraph (3)(B), and 7 years, in the case of the Federal 
     program specified in paragraph (3)(A),'' after ``5 years''.
       (b) Medicaid.--Section 402(b)(2)(A) of such Act is amended 
     in each of clauses (i), (ii), and (iii) by inserting ``(or 7 
     years, in the case of the program specified in paragraph 
     (3)(C))'' after ``5 years''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect as though they had been included in the 
     enactment of section 402 of the Personal Responsibility and 
     Work Opportunity Reconciliation Act of 1996.

     SEC. 9303. EXEMPTIONS FROM RESTRICTIONS ON SUPPLEMENTAL 
                   SECURITY INCOME PROGRAM PARTICIPATION BY 
                   PERMANENT RESIDENT ALIENS WHO ARE MEMBERS OF AN 
                   INDIAN TRIBE.

       (a) In General.--
       (1) Special restriction applicable to ssi.--Section 
     402(a)(2) of the Personal Responsibility and Work Opportunity 
     Reconciliation Act of 1996 is amended by redesignating 
     subparagraph (E) (as previously redesignated by section 
     9301(a) of this Act) as subparagraph (F), and by inserting 
     after subparagraph (D) the following new subparagraph:
       ``(E) SSI exception for permanent resident aliens who are 
     members of an indian tribe.--With respect to the program 
     specified in paragraph (3)(A), paragraph (1) shall not apply 
     to any alien who is lawfully admitted to the United States 
     for permanent residence under the Immigration and Nationality 
     Act and who is a member of an Indian tribe (as defined in 
     section 4(e) of the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 450b(e)).''.
       (2) Five-year restriction applicable to new entrants.--
     Section 403(b) of such Act is amended by adding at the end 
     the following new paragraph:
       ``(3) SSI exception for permanent resident aliens who are 
     members of an indian tribe.--An alien described in section 
     402(a)(2)(E), but only with respect to the program 
     specified in section 402(a)(3)(A).''.
       (b) Effective Date.--The amendments made by paragraphs (1) 
     and (2) of subsection (a) shall take effect as though they 
     had been included in the enactment of sections 402 and 403, 
     respectively, of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996.

     SEC. 9304. EXEMPTION FROM RESTRICTION ON SUPPLEMENTAL 
                   SECURITY INCOME PROGRAM PARTICIPATION BY 
                   CERTAIN RECIPIENTS ELIGIBLE ON THE BASIS OF 
                   VERY OLD APPLICATIONS.

       (a) In General.--Section 402(a)(2) of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996 is amended by redesignating subparagraph (F) (as 
     previously redesignated by section 9303(a)(1) of this Act) as 
     subparagraph (G), and by inserting after subparagraph (E) the 
     following new subparagraph:
       ``(F) SSI exception for certain recipients eligible on the 
     basis of very old applications.--With respect to the program 
     specified in paragraph (3)(A), paragraph (1) shall not apply 
     to any individual (i) who is eligible for benefits under such 
     program for months after July 1996 on the basis of an 
     application filed before January 1, 1979, and (ii) with 
     respect to whom the Commissioner lacks clear and convincing 
     evidence that such individual is an alien ineligible for such 
     benefits as a result of the application of this section.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect as though it had been included in the 
     enactment of section 402 of the Personal Responsibility and 
     Work Opportunity Reconciliation Act of 1996.

     SEC. 9305. EXTENSION OF DEADLINES FOR SSI REDETERMINATION 
                   PROVISIONS.

       (a) In General.--Section 402(a)(2)(G)(i) of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996 (as redesignated by section 9304(a) of this Act) is 
     amended--
       (1) in subclause (I), by striking ``the date which is 1 
     year after such date of enactment'' and inserting ``March 31, 
     1998 or, if later, the date which is 255 days after the date 
     of the enactment of [INSERT SHORT TITLE OF THE ACT CONTAINING 
     THIS AMENDMENT]''; and
       (2) in subclause (III)--
       (A) by striking ``the date of the redetermination with 
     respect to such individual'' and inserting ``March 31, 1998 
     or, if later, the date which is 255 days after the date of 
     the enactment of [INSERT SHORT TITLE OF THE ACT CONTAINING 
     THIS AMENDMENT]''; and
       (B) by inserting ``, and the provisions of section 
     1614(a)(4) and clauses (i) and (ii) of section 1631(a)(7)(A) 
     of the Social Security Act shall not apply to such 
     individual'' before the period.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect as though they had been included in the 
     enactment of section 402 of the Personal Responsibility and 
     Work Opportunity Reconciliation Act of 1996.

     SEC. 9306. REALLOCATION OF DISABILITY DETERMINATION WORKLOADS 
                   RELATING TO ALIENS.

       In any State making disability determinations in accordance 
     with section 221 of the Social Security Act, the Commissioner 
     of Social Security may, notwithstanding the provisions of 
     such section specifying the circumstances under which the 
     Commissioner may assume the disability determination function 
     in such State, elect to make the determination of disability 
     with respect to some or all of the individuals in such State 
     who are described in section 402(a)(2)(D) of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996 (as added by section 9301(a) of this Act) or to transfer 
     responsibility for such function to another State that the 
     Commissioner determines is willing and able to perform such 
     function, if the Commissioner determines that such action is 
     necessary to comply with the deadline specified in section 
     402(a)(2)(G)(i)(I) of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996 (as redesignated by 
     section 9304(a) of this Act).

     SEC. 9307. PRESUMPTION OF DISABILITY FOR PURPOSES OF THE 
                   SUPPLEMENTAL SECURITY INCOME PROGRAM IN THE 
                   CASE OF CERTAIN QUALIFIED ALIENS RESIDING IN 
                   CERTAIN FACILITIES OR RECEIVING HOSPICE CARE.

       For the purpose of determining whether a qualified alien 
     (as defined in section 431 of the Personal Responsibility and 
     Work Opportunity Reconciliation Act of 1996) meets the 
     requirement contained in clause (i) of section 402(a)(2)(D) 
     of such Act (as added by section 9301(a) of this Act), a 
     qualified alien--
       (1) who--
       (A) has attained the age of 65; and
       (B) resides in an institution (or distinct part of an 
     institution) that is primarily engaged in providing medical, 
     custodial, or other care to residents who, because of their 
     mental or physical condition, require such care; or
       (2) who is terminally ill and receiving hospice care,

     shall be presumed to be blind or disabled within the meaning 
     of section 1614(a)(2) or 1614(a)(3), respectively, of the 
     Social Security Act. Such presumption may be rebutted only if 
     the Commissioner of Social Security receives clear and 
     convincing evidence to the contrary.

     SEC. 9308. RELIANCE ON INFORMATION FROM OTHER AGENCIES.

       (a) Reliance.--Notwithstanding any other provision of law, 
     in determining whether a qualified alien (as defined in 
     section 431 of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996) meets the requirement 
     respecting blindness or disability contained in clause (i) of 
     section 402(a)(2)(D) of such Act (as added by section 9301(a) 
     of this Act), the Commissioner of Social Security may rely on 
     information from a State or Federal agency respecting the 
     medical condition of such individual in any case where such 
     information indicates to the Commissioner's satisfaction that 
     such individual is blind or disabled within the meaning of 
     section 1614(a)(2) or section 1614(a)(3), respectively, of 
     the Social Security Act.
       (b) Provision of Information.--Notwithstanding any other 
     provision of law other than section 6103 of the Internal 
     Revenue Code of 1986, the Department of Health and Human 
     Services, the Immigration and Naturalization Service, an 
     agency of any State, or any other governmental agency may 
     disclose to the Social Security Administration information 
     respecting the medical condition of an individual that the 
     Commissioner of Social Security requests for the purpose of 
     making the determination described in subsection (a).
       (c) Temporary Exemption From Computer Matching 
     Requirements.--The provisions of subsections (e)(12), (o), 
     (p), (q), and (u) of section 552a of title 5, United States 
     Code, shall not apply to any computer matching program 
     conducted during the one-year period following the date of 
     the enactment of [INSERT SHORT TITLE OF THE ACT CONTAINING 
     THIS PROVISION] for the purpose of making the determinations 
     described in subsection (a).

     SEC. 9309. TREATMENT OF CERTAIN AMERASIAN IMMIGRANTS AS 
                   REFUGEES.

       (a) Amendments to Exceptions for Refugees/Asylees.--
       (1) For purposes of ssi and food stamps.--Section 
     402(a)(2)(A) of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996 is amended--
       (A) by striking ``; or'' at the end of clause (ii);
       (B) by striking the period at the end of clause (iii) and 
     inserting ``; or''; and

[[Page H4411]]

       (C) by adding after clause (iii) the following new clause:
       ``(iv) an alien is admitted to the United States as an 
     Amerasian immigrant pursuant to section 584 of the Foreign 
     Operations, Export Financing, and Related Programs 
     Appropriations Act, 1988, as incorporated into section 101(e) 
     of the joint resolution making further continuing 
     appropriations for the fiscal year 1988, Public Law 100-202, 
     and amended by the 9th proviso under Migration and Refugee 
     Assistance in title II of the Foreign Operations, Export 
     Financing, and Related Programs Appropriations Act, 1991, 
     Public Law 101-513.''.
       (2) For purposes of tanf, ssbg, and medicaid.--Section 
     402(b)(2)(A) of such Act is amended--
       (A) by striking ``; or'' at the end of clause (ii);
       (B) by striking the period at the end of clause (iii) and 
     inserting ``; or''; and
       (C) by adding after clause (iii) the following new clause:
       ``(iv) an alien described in subsection (a)(2)(A)(iv) until 
     5 years (or 7 years, in the case of the program specified in 
     paragraph (3)(C)) after the date of such alien's entry into 
     the United States.''.
       (3) For purposes of exception from 5-year limited 
     eligibility of qualified aliens.--Section 403(b)(1) of such 
     Act is amended by adding after subparagraph (C) the following 
     new subparagraph:
       ``(D) An alien described in section 402(a)(2)(A)(iv).''.
       (4) For purposes of certain state programs.--Section 
     412(b)(1) of such Act is amended by adding after subparagraph 
     (C) the following new subparagraph:
       ``(D) An alien described in section 402(a)(2)(A)(iv).''.
       (b) Effective Date.--The amendments made by this section 
     shall be effective with respect to periods beginning on or 
     after October 1, 1997.

     SEC. 9310. 5-YEAR LIMITED ELIGIBILITY FOR MEANS-TESTED PUBLIC 
                   BENEFITS: SPECIAL RULE FOR CUBAN AND HAITIAN 
                   ENTRANTS.

       (a) Correction of Reference.--Section 403(d) of the 
     Personal Responsibility and Work Opportunity Reconciliation 
     Act of 1996 is amended by striking ``section 501(e)(2)'' and 
     inserting ``section 501(e)''.
       (b) Effective Date.--The amendment made by this section 
     shall be effective with respect to periods beginning on or 
     after October 1, 1997.
                                                                    ____



   amendment to h.r.--, as reported, offered by mr. levin of michigan

       Strike sections 5004 and 9004, and redesignate succeeding 
     sections and amend the table of contents, accordingly.
                                                                    ____



   amendment to h.r.--, as reported, offered by mr. levin of michigan

       Strike section 9102, and redesignate succeeding sections 
     and amend the table of contents, accordingly.
                                                                    ____



amendment to h.r.--, as reported (relating to reconciliation), offered 
                       by mr. conyers of michigan

       In section 9004(a) (Committee on Ways and Means print), and 
     in section 5004(a) (Education and Labor print) strike the 
     close marks and the period at the end.
       In section 407(j) of the Social Security Act, as amended by 
     Section 9004(a) of the bill, and in section 407(k) of the 
     Social Security Act, as amended by Section 5004(a) of the 
     bill, add the following at the end:
       ``(6) Rule of construction.--Nothing in this title shall be 
     construed to deny recipients of assistance engaging in work, 
     work experience, or community service under this title 
     protection under title VII of the Civil Rights Act of 1964.''
                                                                    ____



 amendment to h.r.--, as reported, offered by mr. conyers of michigan 
                             (malpractice)

       Strike sections 4801 through 4812 (Committee on Commerce) 
     and 10801 through 10812 (Committee on Ways and Means), 
     redesignate succeeding sections, and conform the table of 
     contents.
                                                                    ____



 amendment offered by representative roukema and representative pomeroy

       Strike sections 5301 through 5307 of subtitle D of Title V.
                                                                    ____



    amendment offered by mr. waxman to the medicaid reconciliation 
                               provisions

       At the end of the text, add the following new chapter:
       CHAPTER 4--EXTENSION OF PREMIUM PROTECTION FOR LOW-INCOME 
     MEDICARE BENEFICIARIES

     SEC. 3481. EXTENSION OF SLMB PROTECTION.

       (a) In General.--Section 1902(a)(10)(E)(iii) (42 U.S.C. 
     1396a(a)(10)(E)(iii)) is amended by striking ``and 120 
     percent in 1995 and years thereafter'' and inserting ``, 120 
     percent in 1995 through 1997, 130 percent in 1998, 140 
     percent in 1999, and 150 percent in 2000 and years 
     thereafter''.
       (b) 100 Percent FMAP.--Section 1905(b) (42 U.S.C. 1396d(b)) 
     is amended by adding at the end the following: 
     ``Notwithstanding the first sentence of this section, the 
     Federal medical assistance percentage shall be 100 percent 
     with respect to amounts expended as medical assistance for 
     medical assistance described in section 1902(a)(10(E)(iii) 
     for individuals described in such section whose income 
     exceeds 120 percent of the official poverty line referred to 
     in such section''.
       ``(ii) in the manner and through the written 
     instrumentalities such MedicarePlus organization deems 
     appropriate, makes available information on its policies 
     regarding such service to prospective enrollees before or 
     during enrollment and to enrollees within 90 days after the 
     date that the organization or plan adopts a policy regarding 
     such a counseling or referral service.
                                                                    ____



       amendment offered by representative davis of virginia and 
           representative norton of the district of columbia

       The amendment consists of the text of H.R. 1963.
                                                                    ____



amendment to h.r. --, as reported (relating to reconciliation) offered 
                      by Mr. berman of california

       At an appropriate place, insert the following (and make 
     such technical and conforming changes as may be appropriate):

     SEC.   . AMENDMENT TO PRESERVE FOOD STAMP ELIGIBILITY OF 
                   MIGRANT AND SEASONAL AGRICULTURAL WORKERS.

       Subtitle D of title IV of the Personal Responsibility and 
     Work Opportunity Reconciliation Act of 1996 is amended by 
     adding at the end the following:

     ``SEC. 435. PRESERVATION OF ELIGIBILITY OF MIGRANT AND 
                   SEASONAL AGRICULTURAL WORKERS TO RECEIVE FOOD 
                   STAMP BENEFITS.

       ``(a) Exclusion of Migrant and Seasonal Agricultural 
     Workers.--Notwithstanding any other provision of this title, 
     a migrant or seasonal agricultural worker who is eligible, as 
     determined under the Food Stamp Act of 1977 (7 U.S.C. 
     2012(h)), to participate in the food stamp program (as 
     defined in section 3(h) of such Act) shall not be determined, 
     by reason of the operation of this title, to be ineligible to 
     participate in such program.
       ``(b) Definition.--For purposes of subsection (a), the term 
     `migrant or seasonal agricultural worker'--
       ``(1) has the meaning given the term `migrant agricultural 
     worker' in section 3(8) of Public Law 97-470 (29 U.S.C. 
     1802(8)), and
       ``(2) has the meaning given the term `seasonal agricultural 
     worker' in section 3(10) of Public Law 97-470 (29 U.S.C. 
     1802(10)).''.
                                                                    ____


                    Amendment to H.R.--, As Reported

                   Offered by Mrs. Thurman of Florida

          [(Amendment to Medicare Reconciliation Provisions)]

       At the end of subtitle D of title X (relating to Anti-Fraud 
     and Abuse Provisions), add the following (and conform the 
     table of contents of such title accordingly):

     SEC. 10311. EXTENSION OF SUBPOENA AND INJUNCTION AUTHORITY.

       (a) Subpoena Authority.--Section 1128A(j)(1) (42 U.S.C. 
     1320a-7a(j)(1)) is amended by inserting ``and section 1128'' 
     after ``with respect to this section''.
       (b) Injunction Authority.--Section 1128A(k) (42 U.S.C. 
     1320a-7a(k)) is amended by inserting ``or an exclusion under 
     section 1128,'' after ``subject to a civil monetary penalty 
     under this section,''.
       (c) Clarifying Amendments.--Section 1128A(j) (42 U.S.C. 
     1320a-7a(j)) is amended--
       (1) in paragraph (1)--
       (A) by inserting ``, except that, in so applying such 
     sections, any reference therein to the Commissioner of Social 
     Security or the Social Security Administration shall be 
     considered a reference to the Secretary or the Department of 
     Health and Human Services, respectively'' after ``with 
     respect to title II''; and
       (B) by striking the second sentence; and
       (2) in paragraph (2), to read as follows:
       ``(2) The Secretary may delegate to the Inspector General 
     of the Department of Health and Human Services any or all 
     authority granted under this section or under section 
     1128.''.
       (d) Conforming Amendment.--Section 1128 (42 U.S.C. 1320a-7) 
     is amended by adding at the end the following new subsection:
       ``(j) Reference to Laws Directly Affecting This Section.--
     For provisions of law concerning the Secretary's subpoena and 
     injunction authority under this section, see section 1128A(j) 
     and (k).''.

     SEC. 10312. KICKBACK PENALTIES FOR KNOWING VIOLATIONS.

       Section 1128B(b) (42 U.S.C. 1320a-7b(b)) is amended by 
     striking ``and willfully'' each place it occurs.

     SEC. 10313. ELIMINATION OF EXCEPTION OF FEDERAL EMPLOYEES 
                   HEALTH BENEFITS PROGRAM FROM DEFINITION OF 
                   FEDERAL HEALTH CARE PROGRAM.

       Section 1128B(f)(1) (42 U.S.C. 1320a-7b(f)(1)) is amended 
     by striking ``(other than the health insurance program under 
     chapter 89 of title 5, United States Code)''.

     SEC. 10314. LIABILITY OF PHYSICIANS IN SPECIALTY HOSPITALS.

       Section 1867(d)(1)(B) (42 U.S.C. 1395dd(d)(1)(B)) is 
     amended--
       (1) by inserting ``or a physician working at or on-call at 
     a hospital that is subject to the requirements of subsection 
     (g),'' after ``physician on-call for the care of such an 
     individual,'';
       (2) by striking ``or'' at the end of clause (i); and
       (3) by adding after clause (ii) the following new clauses:
       ``(iii) fails or refuses to appear within a reasonable time 
     at a hospital subject to the requirements of subsection (g) 
     in order to provide an appropriate medical screening 
     examination as required by subsection (a), or

[[Page H4412]]

     necessary stabilizing treatment as required by subsection 
     (b), or
       ``(iv) fails or refuses to accept an appropriate transfer 
     of a patient to a hospital that has specialized capabilities 
     or facilities as defined in subsection (g),''.

     SEC. 10315. EXPANSION OF CRIMINAL PENALTIES FOR KICKBACKS.

       (a) Application of Criminal Penalty Authority to All Health 
     Care Benefit Programs.--Section 1128B(b) (42 U.S.C. 1320a-
     7b(b)) is amended by striking ``Federal health care program'' 
     each place it appears and inserting ``health care benefit 
     program''.
       (b) Attorney General's Authority To Seek Civil Penalties.--
     Section 1128B (42 U.S.C. 1320a-7b) is further amended by 
     adding at the end the following new subsection:
       ``(g)(1) The Attorney General may bring an action in the 
     district courts to impose upon any person who carries out any 
     activity in violation of this section with respect to a 
     Federal health care program a civil penalty of $25,000 to 
     $50,000 for each such violation, and damages of three times 
     the total remuneration offered, paid, solicited, or received.
       ``(2) A violation exists under paragraph (1) if one or more 
     purposes of the remuneration is unlawful, and the damages 
     shall be the full amount of such remuneration.
       ``(3) The procedures for actions under paragraph (1) with 
     regard to subpoenas, statute of limitations, standard of 
     proof, and collateral estoppel shall be governed by 31 U.S.C. 
     3731, and the Federal Rules of Civil Procedure shall apply to 
     actions brought under this section.
       ``(4) This provision does not affect the availability of 
     other criminal and civil remedies for such violations.''.
       (c) Attorney General's Injunction Authority.--Section 1128B 
     (42 U.S.C. 1320a-7b) is further amended by adding at the end 
     the following new subsection:
       ``(h) If the Attorney General has reason to believe that a 
     person is engaging in conduct constituting an offense under 
     subsection (b) or (g), the Attorney General may petition an 
     appropriate United States district court for an order 
     prohibiting that person from engaging in such conduct. The 
     court may issue an order prohibiting that person from 
     engaging in such conduct if the court finds that the conduct 
     constitutes such an offense. The filing of a petition under 
     this section does not preclude any other remedy which is 
     available by law to the United States or any other person.''.
       (d) Definition.--Section 1128B(f) (42 U.S.C. 1320a-7b(f)) 
     is amended--
       (1) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B);
       (2) by striking ``(f)'' and inserting ``(f)(1)''; and
       (3) by adding at the end the following new paragraph:
       ``(2) For purposes of this section, the term ``health care 
     benefit program'' has the meaning given such term in 18 
     U.S.C. 24(b).''.
       (e) Conforming Amendments.--
       (1) Section 1128A(a) (42 U.S.C. 1320a-7a(a)) is amended in 
     the final sentence by striking ``1128B(f)(1)'' and inserting 
     ``1128B(f)(1)(A)''; and
       (2) Section 24(a) of title 18 of the United States Code is 
     amended--
       (A) by striking the period at the end of paragraph (2) and 
     adding a semicolon; and
       (B) by adding after paragraph (2) the following new 
     paragraph:
       ``(3) section 1128B of the Social Security Act.''.

     SEC. 10316. REPEAL OF HIPAA ADVISORY OPINION AUTHORITY.

       Section 1128D (42 U.S.C. 1320a-7d) is amended by striking 
     subsection (b).

     SEC. 10317. REPEAL EXPANDED EXCEPTION FOR RISK-SHARING 
                   CONTRACT TO ANTI-KICKBACK PROVISIONS.

       Section 1128B(b)(3) (42 U.S.C. 1320a-7b(b)(3)), as amended 
     by section 216(a) of the Health Insurance Portability and 
     Accountability Act of 1996, is amended--
       (1) by adding ``and'' at the end of subparagraph (D);
       (2) by striking ``; and'' at the end of subparagraph (E) 
     and inserting a period; and
       (3) by striking subparagraph (F).

     SEC. 10318. ADMINISTRATIVE FEES FOR MEDICARE OVERPAYMENT 
                   COLLECTION.

       (a) Administrative Fees for Providers of Services Under 
     Part A.--Section 1815(d) (42 U.S.C. 1395g(d)) is amended by 
     inserting ``(1)'' after ``(d)'' and by adding at the end the 
     following new paragraph:
       ``(2)(A) Except as provided in subparagraph (B), if the 
     payment of the excess described in paragraph (1) is not made 
     (or effected by offset) within 30 days of the date of the 
     determination, an administrative fee of 1 percent of the 
     outstanding balance of the excess (after application of 
     paragraph (1)), or such lower amount as an Administrative Law 
     Judge may determine upon an appeal of the initial 
     determination of the excess, shall be imposed on the 
     provider, for deposit into the Trust Fund under this part.
       ``(B) The administrative fee shall be imposed under 
     subparagraph (A) on a provider of services paid on a 
     prospective basis only if such provider's cost report with 
     respect to the payment determined to be in excess of the 
     payment due under this part indicates that the provider's 
     projected costs exceeded its actual costs by 30 percent or 
     more.''.
       (b) Administrative Fees for Providers of Services or Other 
     Persons Under Part B.--Section 1833(j) (42 U.S.C. 1395l(j)) 
     is amended by inserting ``(1)'' after ``(j)'' and by adding 
     at the end the following new paragraph:
       ``(2) If the excess described in paragraph (1) is not made 
     (or effected by offset) within 30 days of the date of the 
     determination, an administrative fee of 1 percent of the 
     outstanding balance of the excess (after application of 
     paragraph (1)), or such lower amount as an Administrative Law 
     Judge may determine upon an appeal of the initial 
     determination of the excess, shall be imposed on the 
     provider, or other person receiving the excess, for deposit 
     into the Trust Fund under this part.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to final determinations made on or after the date 
     of enactment of this Act.

     SEC. 10319. AUTOMATED PREPAYMENT SCREENING REQUIREMENT.

       (a) Determination by Administrator.--By September 1 of each 
     year (beginning with 1998), the Administrator of the Health 
     Care Financing Administration, after consultation with the 
     Comptroller General of the United States, shall determine--
       (1) the medical diagnoses by providers of services under 
     title XVIII of the Social Security Act which frequently 
     result in overpayments to such providers under such title; 
     and
       (2) the percentage of claims involving the diagnoses 
     described in paragraph (1), that fiscal intermediaries and 
     carriers under such title shall screen before payment is made 
     in order to avoid such overpayments.
       (b) Requirement for Fiscal Intermediaries and Carriers.--
     The Secretary of Health and Human Services shall not enter 
     into a contract with a fiscal intermediary or carrier under 
     title XVIII of the Social Security Act (42 U.S.C. 1395 et 
     seq.) unless the Secretary finds that such intermediary or 
     carrier will screen the claims for payment, in accordance 
     with subsection (a), under such title.
       (c) Notice to Fiscal Intermediaries and Carriers.--The 
     Secretary shall cause to have published in the Federal 
     Register, in the last 15 days of October of each year, the 
     results of the determination made under subsection (a).
                                                                    ____



 amendment to the committee print offered by mr. becerra of california

       At the end of subtitle D of title IX (relating to 
     restricting welfare and public benefits for aliens) insert 
     the following new section:

     SEC. 9305. SSI ELIGIBILITY FOR CERTAIN DISABLED ALIENS.

       Section 402(a)(2) of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)(12)) 
     is amended by inserting after subparagraph (F) (as added by 
     section 9303) the following new subparagraph:
       ``(G) SSI eligibility for certain disabled aliens.--With 
     respect to the program specified in paragraph (3)(A) 
     (relating to the supplemental security income program), 
     paragraph (1) shall not apply to a qualified alien--
       ``(i) who is blind or disabled within the meaning of 
     section 1614(a)(2) or 1614(a)(3), respectively, of the Social 
     Security Act; and
       ``(ii) who on or before August 22, 1996, obtained a status 
     within the meaning of the term `qualified alien'.''.
                                                                    ____



Amendment Offered by Mr. Pallone, Ms. Eshoo, and Ms. Furse To the Child 
                    Health Reconciliation Provisions

       Strike the entire text and insert the following:
       Subtitle F--Child Health Insurance Initiative Act of 1997

     SEC. 3500. SHORT TITLE OF SUBTITLE.

       This subtitle may be cited as the ``Child Health Insurance 
     Initiative Act of 1997''.

                      CHAPTER 1--IMPROVED OUTREACH

     SEC. 3501. GRANT PROGRAM TO PROMOTE OUTREACH EFFORTS.

       (a) Authorization of Appropriations.--There are authorized 
     to be appropriated, for each fiscal year beginning with 
     fiscal year 1998 to the Secretary of Health and Human 
     Services, $25,000,000 for grants to States, localities, and 
     nonprofit entities to promote outreach efforts to enroll 
     eligible children under the medicaid program under title XIX 
     of the Social Security Act (42 U.S.C. 1396 et seq.) and 
     related programs.
       (b) Use of Funds.--Funds under this section may be used to 
     reimburse States, localities, and nonprofit entities for 
     additional training and administrative costs associated with 
     outreach activities. Such activities include the following:
       (1) Use of a common application form for federal child 
     assistance programs.--Implementing use of a single 
     application form (established by the Secretary and based on 
     the model application forms developed under subsections (a) 
     and (b) of section 6506 of the Omnibus Budget Reconciliation 
     Act of 1989 (42 U.S.C. 701 note; 1396a note)) to determine 
     the eligibility of a child or the child's family (as 
     applicable) for assistance or benefits under the medicaid 
     program and under other Federal child assistance programs 
     (such as the temporary assistance for needy families program 
     under part A of title IV of the Social Security Act (42 
     U.S.C. 601 et seq.), the food stamp program, as defined in 
     section 3(h) of the Food Stamp Act of 1977 (7 U.S.C. 
     2012(h)), and the State program for foster care maintenance 
     payments and adoption assistance payments under part E of 
     title IV of the Social Security Act (42 U.S.C. 670 et seq.)).
       (2) Expanding outstationing of eligibility personnel.--
     Providing for the stationing of eligibility workers at sites, 
     such

[[Page H4413]]

     as hospitals and health clinics, at which children receive 
     health care or related services.
       (c) Application, Etc.--Funding shall be made available 
     under this section only upon the approval of an application 
     by a State, locality, or nonprofit entity for such funding 
     and only upon such terms and conditions as the Secretary 
     specifies.
       (d) Administration.--The Secretary may administer the grant 
     program under this section through the identifiable 
     administrative unit designated under section 509(a) of the 
     Social Security Act (42 U.S.C. 709(a)) to promote 
     coordination of medicaid and maternal and child health 
     activities and other child health related activities.

               CHAPTER 2--STRENGTHENING MEDICAID PROGRAM

     SEC. 3521. STATE OPTION OF CONTINUOUS ELIGIBILITY FOR 12 
                   MONTHS FOR CHILDREN UNDER THE MEDICAID PROGRAM.

       (a) In General.--Section 1902(e) of the Social Security Act 
     (42 U.S.C. 1396a(e)) is amended by adding at the end the 
     following new paragraph:
       ``(12) At the option of the State, the plan may provide 
     that an individual who is under an age specified by the State 
     (not to exceed 19 years of age) and who is determined to be 
     eligible for benefits under a State plan approved under this 
     title under subsection (a)(10)(A) shall remain eligible for 
     those benefits until the earlier of--
       ``(A) the end of a period (not to exceed 12 months) 
     following the determination; or
       ``(B) the time that the individual exceeds that age.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     applies to medical assistance for items and services 
     furnished on or after January 1, 1998.

     SEC. 3522. CLARIFICATION OF STATE OPTION TO COVER ALL 
                   CHILDREN UNDER 19 YEARS OF AGE.

       Effective upon the date of the enactment of this Act, 
     section 1902(l)(1)(D) of the Social Security Act (42 U.S.C. 
     1396a(l)(1)(D)) is amended by inserting ``(or, at the option 
     of a State, after any earlier date)'' after ``children born 
     after September 30, 1983''.

                      CHAPTER 3--MEDIKIDS PROGRAM

     SEC. 3531. STATE ENTITLEMENT TO PAYMENT FOR MEDIKIDS PROGRAM.

       (a) In General.--Each State that has a plan for a child 
     health insurance program, or MediKids program, approved by 
     the Secretary is entitled to receive, from amounts in the 
     Treasury not otherwise appropriated and for each fiscal year 
     beginning with fiscal year 1998, payment of the amounts 
     provided under section 3533.
       (b) Application.--The Secretary shall establish a procedure 
     for the submittal and approval of plans for MediKids programs 
     under this chapter. The Secretary shall approve the plan of a 
     State for such a program if the Secretary determines that--
       (1) the State is meeting the medicaid coverage requirements 
     of section 3532(a), and
       (2) the plan provides assurances satisfactory to the 
     Secretary that the MediKids program will be conducted 
     consistent with the applicable requirements of section 3532.

     SEC. 3532. REQUIREMENTS FOR APPROVAL OF MEDIKIDS PROGRAM.

       (a) Adequate Medicaid Coverage.--The medicaid coverage 
     requirements of this subsection are the following:
       (1) Coverage of pregnant women and children and infants up 
     to 185 percent of poverty.--The State has established 185 
     percent of the poverty line as the applicable percentage 
     under section 1902(l)(2)(A) of the Social Security Act (42 
     U.S.C. 1396a(l)(2)(A)).
       (2) Coverage of children up to 19 years of age.--The State 
     provides, either through exercise of the option under section 
     1902(l)(1)(D) of such Act (42 U.S.C. 1396a(l)(1)(D)) or 
     authority under section 1902(r)(2) of such Act (42 U.S.C. 
     1396a(r)(2)) for coverage under section 1902(l)(1)(D) of such 
     Act of individuals under 19 years of age, regardless of date 
     of birth.
       (3) Maintenance of effort.--
       (A) Medicaid.--Subject to subparagraph (B), the State--
       (i) has not modified the eligibility requirements for 
     children under the State medicaid plan, as in effect on 
     January 1, 1997 in any manner that would have the effect of 
     reducing the eligibility of children for coverage under such 
     plan, and
       (ii) will use the funds provided under this chapter to 
     supplement and not supplant other Federal and State funds.
       (B) Waiver exception.--Subparagraph (A) shall not apply to 
     modifications made pursuant to an application for a waiver 
     under section 1115 of the Social Security Act (42 U.S.C. 
     1315) submitted before January 1, 1997.
       (b) Coverage of Uninsured Children.--
       (1) In general.--A MediKids program shall not provide 
     benefits for children who are otherwise covered for such 
     benefits under a medicaid plan or under a group health plan, 
     health insurance coverage, or other health benefits coverage, 
     but may expend funds for outreach and other activities in 
     order to promote coverage under such plans.
       (2) Construction.--Nothing in this subsection shall be 
     construed as requiring a MediKids plan of a State to provide 
     coverage for all near poverty level children described in 
     paragraph (1) who are residing in the State.
       (c) Medicaid-Equivalent Benefits.--
       (1) In general.--Subject to subsection (d), a MediKids 
     program shall provide benefits to eligible children for the 
     equivalent items and services for which medical assistance is 
     available (other than cost sharing) to children under the 
     State's medicaid plan.
       (2) Construction.--Nothing in this subsection shall be 
     construed as limiting the method under which a MediKids plan 
     may provide benefits, including through purchase of health 
     insurance coverage, direct payment for covered services, or 
     otherwise.
       (d) Premiums and Cost-Sharing.--A MediKids program may--
       (1) require the payment of premiums as a condition for 
     coverage, but only for a covered child whose family income 
     exceeds the poverty line;
       (2) impose deductibles, coinsurance, copayments, and other 
     forms of cost-sharing with respect to benefits under the 
     program; and
       (3) vary the levels of premiums, deductibles, coinsurance, 
     copayments, and other cost-sharing based on a sliding scale 
     related to the family income of the covered child.

     SEC. 3533. PAYMENT AMOUNTS.

       (a) Total Amount Available.--The total amount of funds that 
     is available for payments under this chapter in any fiscal 
     year is $2,000,000,000.
       (b) Allotment Among States.--
       (1) In general.--The Secretary shall establish a formula 
     for the allotment of the total amount of funds available 
     under subsection (a) among the qualifying States for each 
     fiscal year.
       (2) Basis.--The formula shall be based upon the Secretary's 
     estimate of the number of near poverty level children in the 
     State as a proportion of the total of such numbers for all 
     the qualifying States.
       (3) Carryforward.--If the Secretary does not pay to a State 
     under subsection (c) in a fiscal year the amount of its 
     allotment in that fiscal year under this subsection, the 
     amount of its allotment under this subsection for the 
     succeeding fiscal year shall be increased by the amount of 
     such shortfall.
       (c) Payments.--
       (1) In general.--From the allotment of each qualifying 
     State under subsection (b) for a fiscal year, the Secretary 
     shall pay to the State for each quarter in the fiscal year an 
     amount equal to 75 percent of the total amount expended 
     during such quarter to carry out the State's MediKids 
     program.
       (2) Not counting cost sharing.--For purposes of paragraph 
     (1), if a MediKids program imposes premiums for coverage or 
     requires payment of deductibles, coinsurance, copayments, or 
     other cost sharing, under rules of the Secretary, 
     expenditures attributable to such premiums or cost sharing 
     shall not be taken into account under paragraph (1).
       (d) State Entitlement.--This chapter constitutes budget 
     authority in advance of appropriations Acts, and represents 
     the obligation of the Federal Government to provide for the 
     payment to qualifying States of amounts provided under this 
     section.

     SEC. 3534. DEFINITIONS.

       For purposes of this chapter:
       (1) The term ``child'' means an individual under 19 years 
     of age.
       (2) The term ``medicaid plan'' means the plan of medical 
     assistance of a State under title XIX of the Social Security 
     Act.
       (3) The term ``MediKids program'' means a child health 
     insurance program of a State under this title.
       (4) The term ``near poverty level child'' means a child the 
     family income of which (as defined by the Secretary) is at 
     least 100 percent, but less than 300 percent, of the poverty 
     line.
       (5) The term ``poverty line'' has the meaning given such 
     term in section 673(2) of the Community Services Block Grant 
     Act (42 U.S.C. 9902(2)), including any revision required by 
     such section.
       (6) The term ``qualifying State'' means a State with a 
     MediKids program for which a plan is submitted and approved 
     under this title.
       (7) The term ``Secretary'' means the Secretary of Health 
     and Human Services .
       (8) The term ``State'' means the 50 States, the District of 
     Columbia, Puerto Rico, the Virgin Islands, Guam, American 
     Samoa, and the Northern Mariana Islands.

       CHAPTER 4--ASSURING CHILDREN'S ACCESS TO HEALTH INSURANCE

     SEC. 3441. GUARANTEED AVAILABILITY OF INDIVIDUAL HEALTH 
                   INSURANCE COVERAGE TO UNINSURED CHILDREN.

       (a) In General.--Title XXVII of the Public Health Service 
     Act, as added by section 111(a) of the Health Insurance 
     Portability and Accountability Act of 1996, is amended by 
     inserting after section 2741 the following new section:

     ``SEC. 2741A. GUARANTEED AVAILABILITY OF INDIVIDUAL HEALTH 
                   INSURANCE COVERAGE TO UNINSURED CHILDREN.

       ``(a) Guaranteed Availability.--
       ``(1) In general.--Subject to the succeeding subsections of 
     this section, each health insurance issuer that offers health 
     insurance coverage (as defined in section 2791(b)(1)) in the 
     individual market in a State, in the case of an eligible 
     child (as defined in subsection (b)) desiring to enroll in 
     individual health insurance coverage--
       ``(A) may not decline to offer such coverage to, or deny 
     enrollment of, such child;
       ``(B) either (i) does not impose any preexisting condition 
     exclusion (as defined in section 2701(b)(1)(A)) with respect 
     to such coverage, or (ii) imposes such a preexisting 
     condition exclusion only to the extent such an exclusion may 
     be imposed under section 2701(a) in the case of an individual 
     who is not a late enrollee; and

[[Page H4414]]

       ``(C) shall provide that the premium for the coverage is 
     determined in a manner so that the ratio of the premium for 
     such eligible children to the premium for eligible 
     individuals described in section 2741(b) does not exceed the 
     ratio of the actuarial value of such coverage (calculated 
     based on a standardized population and a set of standardized 
     utilization and cost factors) for children to such actuarial 
     value for such coverage for such eligible individuals.
       ``(2) Substitution by state of acceptable alternative 
     mechanism.--The requirement of paragraph (1) shall not apply 
     to health insurance coverage offered in the individual market 
     in a State in which the State is implementing an acceptable 
     alternative mechanism under section 2744.
       ``(b) Eligible Child Defined.--In this part, the term 
     `eligible child' means an individual born after September 30, 
     1983, who has not attained 19 years of age and--
       ``(1) who is a citizen or national of the United States, an 
     alien lawfully admitted for permanent residence, or an alien 
     otherwise permanently residing in the United States under 
     color of law;
       ``(2) who is not eligible for coverage under (A) a group 
     health plan, (B) part A or part B of title XVIII of the 
     Social Security Act, or (C) a State plan under title XIX of 
     such Act (or any successor program), and does not have other 
     health insurance coverage; and
       ``(3) with respect to whom the most recent coverage (if 
     any, within the 1-year period ending on the date coverage is 
     sought under this section) was not terminated based on a 
     factor described in paragraph (1) or (2) of section 2712(b) 
     (relating to nonpayment of premiums or fraud).

     For purposes of paragraph (2)(A), the term `group health 
     plan' does not include COBRA continuation coverage.
       ``(c) Incorporation of Certain Provisions.--
       ``(1) In general.--Subject to paragraph (2), the provisions 
     of subsections (c), (d), (e) and (f) (other than paragraph 
     (1)) of section 2741 and section 2744 shall apply in relation 
     to eligible children under subsection (a) in the same manner 
     as they apply in relation to eligible individuals under 
     section 2741(a).
       ``(2) Special rules for acceptable alternative 
     mechanisms.--With respect to applying section 2744 under 
     paragraph (1)--
       ``(A) the requirement in subsection (a)(1)(B) shall be 
     applied instead of the requirement of section 2744(a)(1)(B);
       ``(B) the requirement in subsection (a)(1)(C) shall be 
     applied instead of the requirement of section 2744(a)(1)(D); 
     and
       ``(C) any deadline specified in such section shall be 1 
     year after the deadline otherwise specified.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take apply 1 year after the effective date for section 
     2741 of the Public Health Service Act (as provided under 
     section 111(b)(1) of the Health Insurance Portability and 
     Accountability Act of 1996).

                   CHAPTER 5--APPROPRIATION FOR DATA

     SEC. 3551. AUTHORIZATION OF APPROPRIATIONS.

       In addition to any other amounts authorized to be 
     appropriated, there are authorized to be appropriated 
     $5,000,000 for the Bureau of the Census to refine the data on 
     children in families with family incomes below 300 percent of 
     the applicable Federal poverty level in each State.
                                                                    ____



              amendment to h.r. --, offered by mr. bentsen

       Amend section 3471(b) to read as follows:
       (b)(1) Adjustment to State DSH Allocations.--Subsection (f) 
     of section 1923 (42 U.S.C. 1396r-4) is amended to read as 
     follows:
       ``(f) Limitation on Federal Financial Participation.--
       ``(1) In general.--Subject to section 1903(x), payment 
     under section 1903(a) shall not be made to a State with 
     respect to any payment adjustment made under this section for 
     hospitals in a State (as defined in paragraph (3)(B)) for 
     quarters in a fiscal year in excess of the State 
     disproportionate share hospital (in this subsection referred 
     to as `DSH') allotments for the year (as specified in 
     paragraph (2)).
       ``(2) Determination of state dsh allotments.--
       ``(A) In general.--The DSH allotment for a State is equal 
     to its State 1995 DSH spending minus--
       ``(i) for fiscal year 1998, 0;
       ``(ii) for fiscal year 1999, 15 percent of the State 
     multiplier; and
       ``(iii) for fiscal year 2000 and each succeeding year, 25 
     percent of the State multiplier.
       ``(3) Definitions.--In this subsection:
       ``(A) State.--The term `State' means the 50 States and the 
     District of Columbia.
       ``(B) State 1995 dsh spending.--The term--State 1995 DSH 
     spending means, with respect to a State, the total amount of 
     payment adjustments made under subsection (c) under the State 
     plan during fiscal year 1995 as reported by the State no 
     later than January 1, 1997, on HCFA Form 64.
       ``(C) State multiplier.--The term `State multiplier' means, 
     with respect to a State, the lesser of--
       ``(i) the State 1995 DSH spending; or
       ``(ii) 12 percent of the total amount of expenditures made 
     under the State plan under this title for medical assistance 
     during fiscal year 1995 as reported by the State no later 
     than January 1, 1997 on HCFA Form 64.''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall apply to fiscal years beginning with fiscal year 1998.

  Mr. SOLOMON. Mr. Speaker, I yield myself the balance of my time.
  Mr. Speaker, I smell a cop-out. I hear Members standing up here 
finding all kinds of excuses to vote against this rule because it does 
not have any enforcement procedures. Let me show my colleagues 
something.
  Here are thousands of pages of cuts, $182 billion in entitlement cuts 
over the next 5 years, $700 billion in locked-in spending cuts. If you 
want some fiscal sanity around here, do what your President is asking 
us to do; he is calling your offices right now, saying support the 
rule, support the bill. Let us get together. A deal is a deal.
  Mr. Speaker, I yield back the balance of my time, and I move the 
previous question on the resolution.
  The SPEAKER pro tempore. The question is on ordering the previous 
question.
  The question was taken; and the Speaker pro tempore announced that 
the noes appeared to have it.
  Mr. SOLOMON. Mr. Speaker, I object to the vote on the ground that a 
quorum is not present and make the point of order that a quorum is not 
present.
  The SPEAKER pro tempore. Evidently a quorum is not present.
  The Sergeant at Arms will notify absent Members.
  The vote was taken by electronic device, and there were--yeas 222, 
nays 204, not voting 8, as follows:

                             [Roll No. 238]

                               YEAS--222

     Aderholt
     Archer
     Armey
     Bachus
     Baker
     Ballenger
     Barr
     Barrett (NE)
     Bartlett
     Barton
     Bass
     Bateman
     Bereuter
     Bilbray
     Bilirakis
     Bliley
     Blunt
     Boehlert
     Boehner
     Bonilla
     Bono
     Brady
     Bryant
     Bunning
     Burr
     Burton
     Buyer
     Callahan
     Calvert
     Camp
     Campbell
     Canady
     Cannon
     Castle
     Chabot
     Chambliss
     Chenoweth
     Christensen
     Coble
     Coburn
     Collins
     Combest
     Cook
     Cooksey
     Crane
     Crapo
     Cubin
     Cunningham
     Davis (VA)
     Deal
     DeLay
     Diaz-Balart
     Dickey
     Doolittle
     Dreier
     Duncan
     Dunn
     Ehlers
     Ehrlich
     Emerson
     English
     Ensign
     Everett
     Ewing
     Fawell
     Foley
     Forbes
     Fowler
     Fox
     Franks (NJ)
     Frelinghuysen
     Gallegly
     Ganske
     Gekas
     Gibbons
     Gilchrest
     Gillmor
     Gilman
     Goodling
     Goss
     Graham
     Granger
     Greenwood
     Gutknecht
     Hansen
     Hastert
     Hastings (WA)
     Hayworth
     Hefley
     Herger
     Hill
     Hilleary
     Hobson
     Hoekstra
     Horn
     Hostettler
     Houghton
     Hulshof
     Hunter
     Hutchinson
     Hyde
     Inglis
     Istook
     Jenkins
     Johnson (CT)
     Johnson, Sam
     Jones
     Kasich
     Kelly
     Kim
     King (NY)
     Kingston
     Klug
     Knollenberg
     Kolbe
     LaHood
     Largent
     Latham
     LaTourette
     Lazio
     Leach
     Lewis (CA)
     Lewis (KY)
     Linder
     Livingston
     LoBiondo
     Lucas
     Manzullo
     McCollum
     McCrery
     McDade
     McInnis
     McIntosh
     McKeon
     Metcalf
     Mica
     Miller (FL)
     Molinari
     Moran (KS)
     Morella
     Myrick
     Nethercutt
     Neumann
     Ney
     Northup
     Norwood
     Nussle
     Oxley
     Packard
     Pappas
     Parker
     Paul
     Paxon
     Pease
     Peterson (PA)
     Petri
     Pickering
     Pitts
     Pombo
     Porter
     Portman
     Pryce (OH)
     Quinn
     Radanovich
     Ramstad
     Redmond
     Regula
     Riggs
     Riley
     Rogan
     Rogers
     Rohrabacher
     Ros-Lehtinen
     Roukema
     Royce
     Ryun
     Salmon
     Sanford
     Saxton
     Scarborough
     Schaefer, Dan
     Schaffer, Bob
     Sensenbrenner
     Sessions
     Shadegg
     Shaw
     Shays
     Shimkus
     Shuster
     Skeen
     Smith (MI)
     Smith (OR)
     Smith (TX)
     Smith, Linda
     Snowbarger
     Solomon
     Souder
     Spence
     Stearns
     Stump
     Sununu
     Talent
     Tauzin
     Taylor (NC)
     Thomas
     Thornberry
     Thune
     Tiahrt
     Upton
     Walsh
     Wamp
     Watkins
     Watts (OK)
     Weldon (FL)
     Weldon (PA)
     Weller
     White
     Whitfield
     Wicker
     Wolf
     Young (AK)
     Young (FL)

                               NAYS--204

     Abercrombie
     Ackerman
     Allen
     Andrews
     Baesler
     Baldacci
     Barcia
     Barrett (WI)
     Becerra
     Bentsen
     Berman
     Berry
     Bishop
     Blagojevich
     Blumenauer
     Bonior
     Borski
     Boswell
     Boucher
     Boyd
     Brown (CA)
     Brown (FL)
     Brown (OH)
     Capps
     Cardin
     Carson
     Clay
     Clayton
     Clement
     Clyburn
     Condit
     Conyers
     Costello
     Coyne
     Cramer
     Cummings
     Danner
     Davis (FL)
     Davis (IL)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dellums
     Deutsch
     Dicks
     Dingell
     Dixon
     Doggett
     Dooley
     Doyle
     Edwards
     Engel
     Etheridge
     Evans
     Farr
     Fattah
     Fazio
     Filner
     Flake

[[Page H4415]]


     Foglietta
     Ford
     Frank (MA)
     Frost
     Furse
     Gejdenson
     Gephardt
     Gonzalez
     Goode
     Gordon
     Green
     Gutierrez
     Hall (OH)
     Hall (TX)
     Hamilton
     Harman
     Hastings (FL)
     Hefner
     Hilliard
     Hinchey
     Hinojosa
     Holden
     Hooley
     Hoyer
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     John
     Johnson (WI)
     Johnson, E. B.
     Kanjorski
     Kaptur
     Kennedy (MA)
     Kennedy (RI)
     Kennelly
     Kildee
     Kilpatrick
     Kind (WI)
     Kleczka
     Klink
     Kucinich
     LaFalce
     Lampson
     Lantos
     Levin
     Lewis (GA)
     Lipinski
     Lofgren
     Lowey
     Luther
     Maloney (CT)
     Maloney (NY)
     Manton
     Markey
     Martinez
     Mascara
     Matsui
     McCarthy (MO)
     McCarthy (NY)
     McDermott
     McGovern
     McHale
     McIntyre
     McKinney
     McNulty
     Meehan
     Meek
     Menendez
     Millender-McDonald
     Miller (CA)
     Minge
     Mink
     Moakley
     Mollohan
     Moran (VA)
     Murtha
     Nadler
     Neal
     Oberstar
     Obey
     Olver
     Ortiz
     Owens
     Pallone
     Pascrell
     Pastor
     Payne
     Pelosi
     Peterson (MN)
     Pickett
     Poshard
     Price (NC)
     Rahall
     Rangel
     Reyes
     Rivers
     Rodriguez
     Roemer
     Rothman
     Roybal-Allard
     Rush
     Sabo
     Sanchez
     Sanders
     Sandlin
     Sawyer
     Schumer
     Scott
     Serrano
     Sherman
     Sisisky
     Skaggs
     Skelton
     Slaughter
     Smith, Adam
     Snyder
     Spratt
     Stabenow
     Stark
     Stenholm
     Stokes
     Strickland
     Stupak
     Tanner
     Tauscher
     Taylor (MS)
     Thompson
     Thurman
     Tierney
     Torres
     Towns
     Traficant
     Turner
     Velazquez
     Vento
     Visclosky
     Waters
     Watt (NC)
     Waxman
     Wexler
     Weygand
     Wise
     Woolsey
     Wynn

                             NOT VOTING--8

     Cox
     Eshoo
     Goodlatte
     McHugh
     Pomeroy
     Schiff
     Smith (NJ)
     Yates

                              {time}  1313

  Mr. GONZALEZ and Mr. ADAM SMITH of Washington changed their vote from 
``yea'' to ``nay.''
  Mr. GRAHAM changed his vote from ``nay'' to ``yea.''
  So the previous question was ordered.
  The result of the vote was announced as above recorded.
  The SPEAKER pro tempore (Mr. Combest). The question is on the 
resolution.
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.


                             Recorded Vote

  Mr. MOAKLEY. Mr. Speaker, I demand a recorded vote.
  A recorded vote was ordered.
  The vote was taken by electronic device, and there were--ayes 228, 
noes 200, answered ``present'' 1, not voting 5, as follows:

                             [Roll No. 239]

                               YEAS--228

     Aderholt
     Archer
     Armey
     Bachus
     Baker
     Baldacci
     Ballenger
     Barr
     Barrett (NE)
     Bartlett
     Barton
     Bass
     Bateman
     Bereuter
     Bilbray
     Bilirakis
     Bliley
     Blunt
     Boehlert
     Boehner
     Bonilla
     Bono
     Brady
     Bryant
     Bunning
     Burr
     Burton
     Buyer
     Callahan
     Calvert
     Camp
     Campbell
     Canady
     Cannon
     Castle
     Chabot
     Chambliss
     Chenoweth
     Christensen
     Coble
     Collins
     Combest
     Cook
     Cooksey
     Crane
     Crapo
     Cubin
     Cunningham
     Davis (VA)
     Deal
     DeLay
     Diaz-Balart
     Dickey
     Doolittle
     Dreier
     Duncan
     Dunn
     Ehlers
     Ehrlich
     Emerson
     English
     Everett
     Ewing
     Fawell
     Foley
     Forbes
     Fowler
     Fox
     Franks (NJ)
     Frelinghuysen
     Gallegly
     Ganske
     Gekas
     Gibbons
     Gilchrest
     Gillmor
     Gilman
     Goodlatte
     Goodling
     Goss
     Graham
     Granger
     Greenwood
     Gutknecht
     Hall (TX)
     Hansen
     Hastert
     Hastings (WA)
     Hayworth
     Hefley
     Herger
     Hill
     Hilleary
     Hobson
     Hoekstra
     Horn
     Hostettler
     Houghton
     Hulshof
     Hunter
     Hutchinson
     Hyde
     Inglis
     Istook
     Jenkins
     Johnson (CT)
     Johnson, Sam
     Jones
     Kasich
     Kelly
     Kim
     King (NY)
     Kingston
     Klug
     Knollenberg
     Kolbe
     LaHood
     Largent
     Latham
     LaTourette
     Lazio
     Leach
     Lewis (CA)
     Lewis (KY)
     Linder
     Livingston
     LoBiondo
     Lucas
     Manzullo
     McCollum
     McCrery
     McDade
     McHugh
     McInnis
     McIntosh
     McKeon
     Metcalf
     Mica
     Miller (FL)
     Molinari
     Moran (KS)
     Moran (VA)
     Morella
     Myrick
     Nethercutt
     Neumann
     Ney
     Northup
     Norwood
     Nussle
     Oxley
     Packard
     Pappas
     Parker
     Paul
     Paxon
     Pease
     Peterson (PA)
     Petri
     Pickering
     Pitts
     Pombo
     Porter
     Portman
     Pryce (OH)
     Quinn
     Radanovich
     Ramstad
     Redmond
     Regula
     Riggs
     Riley
     Roemer
     Rogan
     Rogers
     Rohrabacher
     Ros-Lehtinen
     Royce
     Ryun
     Salmon
     Sanford
     Saxton
     Scarborough
     Schaefer, Dan
     Schaffer, Bob
     Sensenbrenner
     Sessions
     Shadegg
     Shaw
     Shays
     Shimkus
     Shuster
     Skeen
     Smith (MI)
     Smith (NJ)
     Smith (OR)
     Smith (TX)
     Smith, Adam
     Smith, Linda
     Snowbarger
     Solomon
     Souder
     Spence
     Stearns
     Stump
     Sununu
     Talent
     Tauzin
     Taylor (NC)
     Thomas
     Thornberry
     Thune
     Tiahrt
     Traficant
     Upton
     Walsh
     Wamp
     Watkins
     Watts (OK)
     Weldon (FL)
     Weldon (PA)
     Weller
     White
     Whitfield
     Wicker
     Wolf
     Young (AK)
     Young (FL)

                               NAYS--200

     Abercrombie
     Ackerman
     Allen
     Andrews
     Baesler
     Barcia
     Barrett (WI)
     Becerra
     Bentsen
     Berman
     Berry
     Bishop
     Blagojevich
     Blumenauer
     Bonior
     Borski
     Boswell
     Boucher
     Boyd
     Brown (CA)
     Brown (FL)
     Brown (OH)
     Capps
     Cardin
     Carson
     Clay
     Clayton
     Clement
     Clyburn
     Condit
     Conyers
     Costello
     Coyne
     Cramer
     Cummings
     Danner
     Davis (FL)
     Davis (IL)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dellums
     Deutsch
     Dicks
     Dingell
     Dixon
     Doggett
     Dooley
     Doyle
     Edwards
     Engel
     Ensign
     Eshoo
     Etheridge
     Evans
     Farr
     Fattah
     Fazio
     Filner
     Flake
     Foglietta
     Ford
     Frank (MA)
     Frost
     Furse
     Gejdenson
     Gephardt
     Gonzalez
     Goode
     Gordon
     Green
     Gutierrez
     Hall (OH)
     Hamilton
     Harman
     Hastings (FL)
     Hefner
     Hilliard
     Hinchey
     Hinojosa
     Holden
     Hooley
     Hoyer
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     John
     Johnson (WI)
     Johnson, E. B.
     Kanjorski
     Kaptur
     Kennedy (MA)
     Kennedy (RI)
     Kennelly
     Kildee
     Kilpatrick
     Kind (WI)
     Kleczka
     Klink
     Kucinich
     LaFalce
     Lampson
     Lantos
     Levin
     Lewis (GA)
     Lipinski
     Lofgren
     Lowey
     Luther
     Maloney (CT)
     Maloney (NY)
     Manton
     Markey
     Martinez
     Mascara
     Matsui
     McCarthy (MO)
     McCarthy (NY)
     McDermott
     McGovern
     McHale
     McIntyre
     McKinney
     McNulty
     Meehan
     Menendez
     Millender-McDonald
     Miller (CA)
     Minge
     Mink
     Moakley
     Mollohan
     Murtha
     Nadler
     Neal
     Oberstar
     Obey
     Olver
     Ortiz
     Owens
     Pallone
     Pascrell
     Pastor
     Payne
     Pelosi
     Peterson (MN)
     Pickett
     Pomeroy
     Poshard
     Price (NC)
     Rahall
     Rangel
     Reyes
     Rivers
     Rodriguez
     Rothman
     Roukema
     Roybal-Allard
     Rush
     Sabo
     Sanchez
     Sanders
     Sandlin
     Sawyer
     Schumer
     Scott
     Serrano
     Sherman
     Sisisky
     Skaggs
     Skelton
     Slaughter
     Snyder
     Spratt
     Stabenow
     Stenholm
     Stokes
     Strickland
     Stupak
     Tanner
     Tauscher
     Taylor (MS)
     Thompson
     Thurman
     Tierney
     Torres
     Towns
     Turner
     Velazquez
     Vento
     Visclosky
     Waters
     Watt (NC)
     Waxman
     Wexler
     Weygand
     Wise
     Woolsey
     Wynn

                        ANSWERED ``PRESENT''--1

       
     Coburn
       

                             NOT VOTING--5

     Cox
     Meek
     Schiff
     Stark
     Yates
       

                              {time}  1331

  So the resolution was agreed to.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.

                          ____________________