[Congressional Record Volume 147, Number 43 (Wednesday, March 28, 2001)]
[Senate]
[Pages S3054-S3064]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS--MARCH 28, 2001

      By Ms. SNOWE (for herself and Mr. McCain):
  S. 637. A bill to amend the Magnuson-Stevens Fishery Conservation and 
Management Act (16 U.S.C. 1801 et seq.) to authorize the establishment 
of individual fishery quota systems; to the Committee on Commerce, 
Science, and Transportation.
  Ms. SNOWE. Mr. President, I rise today, together with Senator McCain, 
to introduce the Individual Fishing Quota Act of 2001 which will 
address one of the most complex policy questions in fisheries 
management, individual fishing quotas, IFQs. This bill will amend the 
Magnuson-Stevens Fishery Conservation and Management Act to authorize 
the establishment of new individual quota systems after October 1, 
2002. Last year, I introduced legislation to reauthorize the Magnuson-
Stevens Act and extend the existing moratorium on new IFQ programs for 
three years. Congress ultimately extended the moratorium for two years 
through fiscal year 2002. The combination of the moratorium extension 
and the IFQ Act of 2001 will provide fishermen and fisheries managers 
time to prepare for the possibility of using IFQs as a management 
option. This legislation will in no way whatsoever force IFQs upon any 
regional management council. This is not a mandate to use IFQs. Rather, 
it is intended to provide the councils with an additional conservation 
and management tool after the existing moratorium expires.
  IFQ programs can drastically change the face of fishing communities 
and the fundamental principles of conservation and management. 
Therefore, this legislation needs to be developed in a careful and 
meaningful manner. Accordingly, introduction of this bill is intended 
to begin the dialogue on the possibility of new IFQ programs. I fully 
anticipate that we will hear from many stakeholders to help the 
Subcommittee on Oceans and Fisheries shape and re-shape this bill as 
necessary. I look forward to participation by all impacted groups as we 
move this bill through the legislative process.
  The IFQ Act of 2001 sets conditions under which fishery management 
plans, FMPs, or plan amendments may establish a new individual fishing 
quota system. The bill ensures that any council which establishes new 
IFQs will promote sustainable management of the fishery; require fair 
and equitable allocation of individual quotas; minimize negative social 
and economic impacts on local coastal communities; ensure adequate 
enforcement of the system; and take into account present participation 
and historical fishing practices of the relevant fishery. Additionally, 
the bill requires the Secretary of Commerce to conduct referenda to 
ensure that those most affected by IFQs will have the opportunity to 
formally approve both the initiation and adoption of any new individual 
fishing quota program.
  This bill authorizes the potential allocation of individual quotas to 
fishing vessel owners, fisherman and crew members who are citizens of 
the United States. The legislation does not allow, however, individual 
quotas to be sold, transferred or leased. In addition, participation in 
the fishery is required for a person to hold quota. Acknowledging the 
possibility that undue hardship may ensure, the bill allows for the 
suspension of the transferability requirements by the Secretary on an 
individual case-by-case basis. Moreover, this bill permits councils to 
allocate quota shares to entry-level fisherman, small vessel owners, or 
crew members who may not otherwise be eligible for individual quotas.

  In 1996, Congress reauthorized the Magnuson-Stevens Act through 
enactment of the Sustainable Fisheries Act, SFA. The SFA contained the 
most substantial improvements to fisheries conservation since the 
original passage of the Magnuson-Stevens Act in 1976. More 
specifically, the SFA included a five year moratorium on new IFQ 
programs and required the National Academy of Sciences, NAS, to study 
and report on the issue.

[[Page S3055]]

  As a result, the NAS issued a report which contained a number of 
recommendations to Congress addressing the social, economic, and 
biological aspects of IFQ programs. The first recommendation was for 
Congress to lift the existing moratorium on new IFQ programs and 
authorize the councils to design and implement new IFQs. The IFQ Act of 
2001 specifically incorporates certain recommendations of the NAS 
report and provides councils with the flexibility to adopt additional 
NAS or other recommendations. Mr. President, as with other components 
of fisheries conservation and management, there is no ``one-size-fits-
all'' solution to IFQ programs. Therefore, this bill sets certain 
conditions under which IFQs may be developed, but at the same time, it 
clearly provides the regional councils and the affected fishermen with 
the ability to shape any new IFQ program to fit the needs of the 
fishery, if such a program is desired.
  Over the past one and a half years, the Subcommittee on Oceans and 
Fisheries traveled across the country and held six hearings on the 
reauthorization of the Magnuson-Stevens Act. We began the process in 
Washington, DC, and then visited fishing communities in Maine, 
Louisiana, Alaska, Washington, and Massachusetts. During the course of 
those hearings, we heard official testimony from over 70 witnesses and 
received statements from many more fishermen during open microphone 
sessions at each field hearing. The Subcommittee heard the comments, 
views and recommendations of federal and state officials, regional 
council chairmen and members, other fisheries managers, commercial and 
recreational fishermen, members of the conservation community, and many 
others interested in these important issues. Additionally, the 26th 
annual Maine Fishermen's Forum held a very informative all-day workshop 
on IFQs on March 1, 2001. The IFQ Act of 2001 incorporates many of the 
suggestions we heard from those men and women who fish for a living and 
those who are most affected by the law and its regulations.
  Unfortunately successful fisheries conservation and management seems 
to be the exception and not the rule. The decisions that fishermen, 
regional councils and the Department of Commerce make are complex and 
often depend on less than adequate information. It is incumbent upon 
the Congress to provide the many interested stakeholders with the 
ability to make practical and informed decisions. At a later date, I 
will introduce additional legislation to amend the Magnuson-Stevens Act 
to address the fundamental problems in fisheries management--a lack of 
funding, a lack of basic scientific information, and enhanced 
flexibility in the decision-making process. But today, I introduce the 
IFQ Act of 2001 to begin the dialogue on new individual fishing quota 
programs, the most significant policy question in fisheries management. 
Clearly, I do not presume to offer a perfect solution to a complex and 
emotional concept. However, it is my intent to resolve this issue after 
appropriate debate and consideration by the Commerce Committee and the 
U.S. Senate. I look forward to and expect the full participation of 
those Senators who have expressed interest in this issue in the past 
and those who may be new to the debate.
  I ask unanimous consent that the test of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 637

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``IFQ Act of 2001''.

     SEC. 2. INDIVIDUAL QUOTA PROGRAMS.

       (a) Authority To Establish Individual Quota Systems.--
     Section 303 of the Magnuson-Stevens Fishery Conservation and 
     Management Act (16 U.S.C. 1853) is amended by adding at the 
     end the following:
       ``(e) Special Provisions for Individual Quota Systems.--
       ``(1) Conditions.--A fishery management plan which 
     establishes an individual quota system for a fishery after 
     September 30, 2002--
       ``(A) shall provide for administration of the system by the 
     Secretary in accordance with the terms of the plan;
       ``(B) shall not create, or be construed to create, any 
     right, title, or interest in or to any fish before the fish 
     is harvested;
       ``(C) shall include provisions which establish procedures 
     and requirements for each Council having authority over the 
     fishery, for--
       ``(i) reviewing and revising the terms of the plan that 
     establish the system; and
       ``(ii) renewing, reallocating, and reissuing individual 
     quotas if determined appropriate by each Council;
       ``(D) shall include provisions to--
       ``(i) promote sustainable management of the fishery;
       ``(ii) provide for fair and equitable allocation of 
     individual quotas under the system;
       ``(iii) minimize negative social and economic impacts of 
     the system on local coastal communities;
       ``(iv) ensure adequate enforcement of the system, including 
     the use of observers where appropriate at a level of coverage 
     that should yield statistically significant results; and
       ``(v) take into account present participation and 
     historical fishing practices, in the fishery; and
       ``(E) include provisions that prevent any person or entity 
     from acquiring an excessive share of individual quotas issued 
     for a fishery.
       ``(2) Plan characteristics.--An individual quota issued 
     under an individual quota system established by a fishery 
     management plan--
       ``(A) shall be considered a grant, to the holder of the 
     individual quota, of permission to engage in activities 
     permitted by the individual quota;
       ``(B) may be revoked or limited at any time, in accordance 
     with the terms of the plan and regulations issued by the 
     Secretary or the Council having authority over the fishery 
     for which it is issued, if necessary for the conservation and 
     management of the fishery (including as a result of a 
     violation of this Act or any regulation prescribed under this 
     Act);
       ``(C) if revoked or limited by the Secretary or a Council, 
     shall not confer any right of compensation to the holder of 
     the individual quota;
       ``(D) may be received and held in accordance with 
     regulations prescribed by the Secretary under this Act;
       ``(E) shall, except in the case of an individual quota 
     allocated under an individual quota system established before 
     the date of enactment of the IFQ Act of 2001, expire not 
     later than 5 years after the date it is issued, in accordance 
     with the terms of the fishery management plan; and
       ``(F) upon expiration under subparagraph (E), may be 
     renewed, reallocated, or reissued if determined appropriate 
     by each Council having authority over the fishery.
       ``(3) Eligible holders.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     any fishery management plan that establishes an individual 
     quota system for a fishery may authorize individual quotas to 
     be held by or issued under the system to fishing vessel 
     owners, fishermen, and crew members.
       ``(B) Non-citizens not eligible.--An individual who is not 
     a citizen of the United States may not hold an individual 
     quota issued under a fishery management plan.
       ``(4) Permitted provisions.--Any fishery management plan 
     that establishes an individual quota system for a fishery may 
     include provisions that--
       ``(A) allocate individual quotas under the system among 
     categories of vessels; and
       ``(B) provide a portion of the annual harvest in the 
     fishery for entry-level fishermen, small vessel owners, or 
     crewmembers who do not hold or qualify for individual quotas.
       ``(5) Termination or limitation.--
       ``(A) Grounds.--An individual quota system established for 
     a fishery may be limited or terminated at any time if 
     necessary for the conservation and management of the fishery, 
     by--
       ``(i) the Council which has authority over the fishery for 
     which the system is established, through a fishery management 
     plan or amendment; or
       ``(ii) the Secretary, in the case of any individual quota 
     system established by a fishery management plan developed by 
     the Secretary.
       ``(B) Effect on other authority.--This paragraph does not 
     diminish the authority of the Secretary under any other 
     provision of this Act.
       ``(6) Required provisions; reallocations.--Any individual 
     quota system established for a fishery after the date of 
     enactment of the IFQ Act of 2001--
       ``(A) shall not allow individual quota shares under the 
     system to be sold, transferred, or leased;
       ``(B) shall prohibit a person from holding an individual 
     quota share under the system unless the person participates 
     in the fishery for which the individual quota share is 
     issued; and
       ``(C) shall require that if any person that holds an 
     individual quota share under the system does not engage in 
     fishing under the individual quota share for 3 or more years 
     in any period of 5 consecutive years, the individual quota 
     share shall revert to the Secretary and shall be reallocated 
     under the system to qualified participants in the fishery in 
     a fair and equitable manner.
       ``(7) Exceptions.--
       ``(A) Hardship.--The Secretary may suspend the 
     applicability of paragraph (6) for individuals on a case-by-
     case basis due to

[[Page S3056]]

     death, disablement, undue hardship, retirement, or in any 
     case in which fishing is prohibited by the Secretary or the 
     Council.
       ``(B) Transfer to family members.--Notwithstanding 
     paragraph (6)(A), the Secretary may permit the transfer of an 
     individual fishing quota, on a case-by-case basis, from an 
     individual to a member of that individual's family under 
     circumstances described in subparagraph (A) through a simple 
     and expeditious process.
       ``(8) Definitions.--In this subsection:
       ``(A) individual quota system.--The term `individual quota 
     system' means a system that limits access to a fishery in 
     order to achieve optimum yield, through the allocation and 
     issuance of individual quotas.
       ``(B) individual quota.--The term `individual quota' means 
     a grant of permission to harvest a quantity of fish in a 
     fishery, during each fishing season for which the permission 
     is granted, equal to a stated percentage of the total 
     allowable catch for the fishery.''.
       (b) Approval of Fishery Management Plans Establishing 
     Individual Quota Systems.--Section 304 of that Act (16 U.S.C. 
     1854) is further amended by adding after subsection (h) the 
     following:
       ``(i) Referendum Procedure.--
       ``(1) A Council may prepare and submit a fishery management 
     plan, plan amendment, or regulation that creates an 
     individual fishing quota or other quota-based program only if 
     both the preparation and the submission of such plan, 
     amendment or regulation are approved in separate referenda 
     conducted under paragraph (2).
       ``(2) The Secretary, at the request of a Council, shall 
     conduct the referenda described in paragraph (1). Each 
     referendum shall be decided by a two-thirds majority of the 
     votes cast by eligible permit holders. The Secretary shall 
     develop guidelines to determine procedures and eligibility 
     requirements for referenda and to conduct such referenda in a 
     fair and equitable manner.
       ``(j) Action on Limited Access Systems.--
       ``(1) In addition to the other requirements of this Act, 
     the Secretary may not approve a fishery management plan that 
     establishes a limited access system that provides for the 
     allocation of individual quotas (in this subsection referred 
     to as an `individual quota system') unless the plan complies 
     with section 303(e).
       ``(2) Within 1 year after receipt of recommendations from 
     the review panel established under paragraph (3), the 
     Secretary shall issue regulations which establish 
     requirements for establishing an individual quota system. The 
     regulations shall be developed in accordance with the 
     recommendations. The regulations shall--
       ``(A) specify factors that shall be considered by a Council 
     in determining whether a fishery should be managed under an 
     individual quota system;
       ``(B) ensure that any individual quota system is consistent 
     with the requirements of sections 303(b) and 303(e), and 
     require the collection of fees in accordance with subsection 
     (d)(2) of this section;
       ``(C) provide for appropriate penalties for violations of 
     individual quotas systems, including the revocation of 
     individual quotas for such violations;
       ``(D) include recommendations for potential management 
     options related to individual quotas, including the use 
     of leases or auctions by the Federal Government in the 
     establishment or allocation of individual quotas; and
       ``(E) establish a central lien registry system for the 
     identification, perfection, and determination of lien 
     priorities, and nonjudicial foreclosure of encumbrances, on 
     individual quotas.
       ``(3)(A) Not later than 6 months after the date of the 
     enactment of the IFQ Act of 2001, the Secretary shall 
     establish a review panel to evaluate fishery management plans 
     in effect under this Act that establish a system for limiting 
     access to a fishery, including individual quota systems, and 
     other limited access systems, with particular attention to--
       ``(i) the success of the systems in conserving and managing 
     fisheries;
       ``(ii) the costs of implementing and enforcing the systems;
       ``(iii) the economic effects of the systems on local 
     communities; and
       ``(iv) the use of auctions in the establishment or 
     allocation of individual quota shares.
       ``(B) The review panel shall consist of--
       ``(i) the Secretary or a designee of the Secretary;
       ``(ii) the Commandant of the Coast Guard;
       ``(iii) a representative of each Council, selected by the 
     Council; and
       ``(iv) 5 individuals with knowledge and experience in 
     fisheries management.
       ``(C) Based on the evaluation required under subparagraph 
     (A), the review panel shall, by September 30, 2003--
       ``(i) submit comments to the Councils and the Secretary 
     with respect to the revision of individual quota systems that 
     were established prior to June 1, 1995; and
       ``(ii) submit recommendations to the Secretary for the 
     development of the regulations required under paragraph 
     (2).''.
                                 ______
                                 
      By Mr. DOMENICI (for himself, Mr. Leahy, and Mr. Bennett):
  S. 638. A bill to amend the Internal Revenue Code of 1986 to provide 
the same capital gain treatment for art and collectibles as for other 
investment property and to provide that a deduction equal to fair 
market value shall be allowed for charitable contributions of literary, 
musical, artistic, or scholarly compositions created by the donor; to 
the Committee on Finance.
  Mr. DOMENICI. Mr. President, the bill I am introducing today is 
designed to restore some internal consistency to the Tax Code as it 
applies to art and artists.
  No one has ever said that the Tax Code is fair even though it has 
always been a theoretical objective of the code to treat similar 
taxpayers similarly.
  The bill I am introducing today would address two areas where 
similarly situated taxpayers are not treated the same.
  Internal inconsistency No. 1 deals with the long term capital gains 
tax treatment of investments in art and collectibles.
  Internal inconsistency No. 2 deals with the charitable deduction for 
artists donating their work to a museum or other charitable cause. The 
unartistic person wishing to make a charitable contribution of a piece 
of art is entitled to a deduction equal to fair market value of the 
art. An artist, on the other hand, just because he/she is the creator 
of the art, is limited to a deduction equal to the tube of paint, the 
paper, or other art supplies involved. Under this tax treatment few 
eligible contributions exceed $19.95 even though the art may be worth 
hundreds or even thousands of dollars. The tax treatment is a 
disincentive and a blatant unfairness.
  If a person invests in stocks, or bonds, holds the asset for the 
requisite period of time, and sells at a gain, the tax treatment is 
long term capital gains. The top capital gains tax rate is 20 percent, 
18 percent if the asset is held for five or more years. However, if the 
same person invests in art or collectibles the top rate is hiked up to 
28 percent.
  Art for art's sake should not incur an additional 40-percent tax bill 
simply for revenue's sake. That is a big impact on the pocketbook of 
the beholder.
  Art and collectibles are alternatives to financial instruments as an 
investment choice. To create a tax disadvantage with respect to one 
investment compared to another creates an artificial market and may 
lead to poor investment allocations. It also adversely impacts those 
who make their livelihood in the cultural sectors of the economy.
  Santa Fe, NM, is the third largest art market in the country. We have 
a diverse colony of artists, collectors and gallery owners. We have 
fabulous Native American rug weavers, potters and carvers. Creative 
giants like Georgia O'Keeffe, Maria Martinez, E.L. Blumenshein, Allan 
Houser, R.C. Gorman, and Glenna Goodacre have all chosen New Mexico as 
their home and as their artistic subject.
  John Nieto, Wilson Hurley, Clark Hulings, Verl Goodnight, Bill 
Acheff, Susan Rothenberg, Bruce Nauman, Agnes Martin, Doug Hyde, 
Margaret Nez, Dan Ostermiller are additional examples of living artists 
creating art in New Mexico.
  Art, antiques and collectibles are a $12 to $20 billion annual 
industry nationwide. In New Mexico, it has been estimated that art and 
collectible sales range between $500 million and $1 billion a year.
  Economists have always been interested in the economics of the arts. 
Adam Smith is a well-known economist. He was also a serious, but 
little-known essayist on painting, dancing, and poetry. Keynes was a 
passionate devotee of painting.
  Even the artistically inclined economists found it difficult to 
define art within the context of economic theory.
  When asked to define Jazz, Louis Armstrong replied: ``If you gotta 
ask, you ain't never going to know.'' A similar conundrum has 
challenged Galbraith and other economists who have grappled with the 
definitional issues associated with bringing art within the economic 
calculus.
  Original art objects are, as a commodity group, characterized by a 
set of attributes:
  Every unit of output is differentiated from every other unit of 
output.
  Art works can be copied but not reproduced.
  The cultural capital of the nation has significant elements of public 
good.

[[Page S3057]]

  Because art works can be resold, and their prices may rise over time, 
they have the characteristics of financial assets, and as such may be 
sought as a hedge against inflation, as a store of wealth or as a 
source of speculative capital gain.
  As chairman of the Budget Committee I pride myself on understanding 
economics, so I reviewed the literature on ``cultural economics'' to 
see how the markets have treated the muses.
  Numerous economists have analyzed rates of return on works of art--
some studies going back as far as 1635. The more recent the study the 
more favorable art investments compare with the stock market.
  New Mexico is not only the third largest art market but it is also 
the home of a unique company that manages the Metropolitan Fine Arts 
fund which charts the price performance of various categories of 
collectibles over the past five years. Recently this firm, Lyons and 
Hannover, compared the S&P 500 with different categories of fine art 
and collectibles. Had a person invested in American impressionists like 
Cassatt, Hassam, or Sargent he would have beat the S&P. An investment 
in 20th century expressionists like Klee or Nolde did not out perform 
the S&P. Of the other 16 categories most did almost as well as the S&P 
500. Furniture, ceramics, cars, photography, wine and weapons were also 
worthwhile investments during the last decade.
  Lyons and Hannover are not the only ones putting theory into 
practice. Citigroup has created in essence an art mutual fund. 
Deutchsche Bank recently launched its own art fund and others are 
raising money for an ``art investment bank.'' Not to be outdone by the 
``Wall Street suits'' artist Ben McNeill has gone straight to the 
public. He minted 800 shares in his ``Art Shares'' project at $5 each. 
Each can be redeemed for $10 in 2004, But buyers think they are worth 
more. They've traded on his Web site for as high as $43.
  William Goetzmann when he was at the Columbia Business School 
constructed an art index and concluded that painting price movements 
and stock market fluctuations are correlated. I conclude that with art, 
as well as stocks, past performance is no guarantee of future returns 
but the gains should be taxed the same.
  In 1990, the editor of Art and Auction asked the question: ``Is there 
an `efficient' art market?''
  A well known art dealer answered: ``Definitely not. That's one of the 
things that make the market so interesting.''
  For everyone who has been watching world financial markets lately, 
the art market may be a welcome distraction.
  Why do people invest in art and collectibles?
  Art and collectibles are something you can appreciate even if the 
investment doesn't appreciate.
  Art is less volatile. If bouncing bond prices drive you berserk and 
spiraling stock prices scare you silly, art may be the right investment 
for you.
  Because art and collectibles are investments, the long term capital 
gains tax treatment should be the same as for stocks and bonds. This 
bill would accomplish that.
  Artists will benefit. Gallery owners will benefit. Collectors will 
benefit. And museums benefit from collectors. About 90 percent of what 
winds up in museums like the New York's Metropolitan Museum of Art 
comes from collectors.
  Collecting isn't just for the hoyty toity. It seems that everyone 
collects something. Some collections are better investments than 
others. Some collections are just bizarre. The internet makes 
collecting big business.
  The flea market fanatics are also avid collectors. In fact, people 
collect the darndest things. Books, duck decoys, Audubon prints, chai 
pets, snowglobes, thimbles, handcuffs, spectacles, baseball cards, and 
caps, guns and dolls.
  This bill could be called the ``Fine art, furniture, figurines, coins 
and stamps, china and pottery, silver, cast iron and brass wares, 
beanie babies, rugs, quilts, and other textiles, architectural columns, 
glassware, jewelry, lamps, military memorabilia, toys, dolls, trains, 
entertainment memorabilia, political memorabilia, books, maps, antique 
hardware, clocks and watches'' Capital Gains Parity Act and I still 
would not have accurately captured the full scope of the bill.
  For most of these collections, capital gains isn't really an issue, 
but you never know. Antique Roadshow is one of the most popular shows 
on TV. Everyone knows the story about the women who bought the card 
table at a yard sale for $25. It turned out to be the work of a Boston 
cabinet maker circa 1797. It later sold at Sotheby's for $490,000.
  Like the women on Antique Roadshow, you could be creating a sizeable 
taxable asset if you decide to sell your art or collectible collection. 
You may find that your collecting passion has created a tax 
predicament--to phrase it politely. Art and collectibles are tangible 
assets. When you sell them, capital gains tax is due on any 
appreciation over your purchase price.
  The bill provides capital gains tax parity because it lowers the top 
capital gains rate from 28 percent to 20 percent, 18 percent if the 
asset has been held for five or more years.
  The second area where people similarly situated are not treated 
similarly in the tax code deals with charitable contributions. When 
someone is asked to make a charitable contribution to a museum or to a 
fund raising auction it shouldn't, but under current law does, matter 
whether you are an artist or not.

  Under current law an artist/creator can only take a deduction equal 
to the cost of the art supplies.
  The bill I am introducing with Senators Leahy and Bennett will allow 
a fair market deduction for the artist. It includes certain safeguards 
to keep the artist from ``painting himself a tax deduction.''
  This bill applies to literary, musical, artistic, and scholarly 
compositions if the work was created at least 18 months before the 
donation was made, has been appraised, and is related to the purpose or 
function of the charitable organization receiving the donation.
  As with other charitable contributions it is limited to 50 percent of 
adjusted gross income, AGI. If it is also a capital gain, there is a 30 
percent of AGI limit.
  I believe these safeguards bring fairness back into the code and 
protect the Treasury against any potential abuse.
  The revenue estimate for the capital gains provision is $2.3 billion 
over ten years and the estimate for the charitable deduction is 
approximately $48 million over ten years.
  I hope my colleagues will help me put the internally consistent into 
the Internal Revenue Code--for art's sake.
  I ask unanimous consent the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 638

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Art and Collectibles Capital 
     Gains Tax Treatment Parity Act''.

     SEC. 2. CAPITAL GAINS TREATMENT FOR ART AND COLLECTIBLES.

       (a) In General.--Section 1(h) of the Internal Revenue Code 
     of 1986 (relating to maximum capital gains rate) is amended 
     by striking paragraphs (5) and (6) and inserting the 
     following new paragraph:
       ``(5) 28-percent rate gain.--For purposes of this 
     subsection, the term `28-percent rate gain' means the excess 
     (if any) of--
       ``(A) section 1202 gain, over
       ``(B) the sum of--
       ``(i) the net short-term capital loss, and
       ``(ii) the amount of long-term capital loss carried under 
     section 1212(b)(1)(B) to the taxable year.''.
       (b) Conforming Amendments.--
       (1) Section 1(h)(9) of the Internal Revenue Code of 1986 is 
     amended by striking ``collectibles gain, gain described in 
     paragraph (7)(A)(i),'' and inserting ``gain described in 
     paragraph (7)(A)(i)''.
       (2) Section 1(h) of such Code is amended by redesignating 
     paragraphs (12) and (13) as paragraphs (6) and (12), 
     respectively.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.

     SEC. 3. CHARITABLE CONTRIBUTIONS OF CERTAIN ITEMS CREATED BY 
                   THE TAXPAYER.

       (a) In General.--Subsection (e) of section 170 of the 
     Internal Revenue Code of 1986 (relating to certain 
     contributions of ordinary income and capital gain property) 
     is amended by adding at the end the following new paragraph:
       ``(7) Special rule for certain contributions of literary, 
     musical, or artistic compositions.--

[[Page S3058]]

       ``(A) In general.--In the case of a qualified artistic 
     charitable contribution--
       ``(i) the amount of such contribution shall be the fair 
     market value of the property contributed (determined at the 
     time of such contribution), and
       ``(ii) no reduction in the amount of such contribution 
     shall be made under paragraph (1).
       ``(B) Qualified artistic charitable contribution.--For 
     purposes of this paragraph, the term `qualified artistic 
     charitable contribution' means a charitable contribution of 
     any literary, musical, artistic, or scholarly composition, or 
     similar property, or the copyright thereon (or both), but 
     only if--
       ``(i) such property was created by the personal efforts of 
     the taxpayer making such contribution no less than 18 months 
     prior to such contribution,
       ``(ii) the taxpayer--

       ``(I) has received a qualified appraisal of the fair market 
     value of such property in accordance with the regulations 
     under this section, and
       ``(II) attaches to the taxpayer's income tax return for the 
     taxable year in which such contribution was made a copy of 
     such appraisal,

       ``(iii) the donee is an organization described in 
     subsection (b)(1)(A),
       ``(iv) the use of such property by the donee is related to 
     the purpose or function constituting the basis for the 
     donee's exemption under section 501 (or, in the case of a 
     governmental unit, to any purpose or function described under 
     subsection (c)),
       ``(v) the taxpayer receives from the donee a written 
     statement representing that the donee's use of the property 
     will be in accordance with the provisions of clause (iv), and
       ``(vi) the written appraisal referred to in clause (ii) 
     includes evidence of the extent (if any) to which property 
     created by the personal efforts of the taxpayer and of the 
     same type as the donated property is or has been--

       ``(I) owned, maintained, and displayed by organizations 
     described in subsection (b)(1)(A), and
       ``(II) sold to or exchanged by persons other than the 
     taxpayer, donee, or any related person (as defined in section 
     465(b)(3)(C)).

       ``(C) Maximum dollar limitation; no carryover of increased 
     deduction.--The increase in the deduction under this section 
     by reason of this paragraph for any taxable year--
       ``(i) shall not exceed the artistic adjusted gross income 
     of the taxpayer for such taxable year, and
       ``(ii) shall not be taken into account in determining the 
     amount which may be carried from such taxable year under 
     subsection (d).
       ``(D) Artistic adjusted gross income.--For purposes of this 
     paragraph, the term `artistic adjusted gross income' means 
     that portion of the adjusted gross income of the taxpayer for 
     the taxable year attributable to--
       ``(i) income from the sale or use of property created by 
     the personal efforts of the taxpayer which is of the same 
     type as the donated property, and
       ``(ii) income from teaching, lecturing, performing, or 
     similar activity with respect to property described in clause 
     (i).
       ``(E) Paragraph not to apply to certain contributions.--
     Subparagraph (A) shall not apply to any charitable 
     contribution of any letter, memorandum, or similar property 
     which was written, prepared, or produced by or for an 
     individual while the individual is an officer or employee of 
     any person (including any government agency or 
     instrumentality) unless such letter, memorandum, or similar 
     property is entirely personal.
       ``(F) Copyright treated as separate property for partial 
     interest rule.--In the case of a qualified artistic 
     charitable contribution, the tangible literary, musical, 
     artistic, or scholarly composition, or similar property and 
     the copyright on such work shall be treated as separate 
     properties for purposes of this paragraph and subsection 
     (f)(3).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to contributions made after the date of the 
     enactment of this Act in taxable years ending after such 
     date.
                                 ______
                                 
      By Mr. TORRICELLI:
  S. 641. A bill to amend section 842 of title 18, United States Code, 
relating to explosive materials; to the Committee on the Judiciary.
  Mr. TORRICELLI. Mr. President, I rise today to introduce the 
``Explosives Protection Act.'' I do this in memory of the tragic 
bombing of the federal building in Oklahoma City, because I hope that 
this bill will, in some small way, prevent future bombings--whether by 
terrorists of symbolic targets, malcontents of random ones, or even 
spouses involved in marital disputes.
  This bill, while not directly related to the circumstances in 
Oklahoma City, is a first step towards protecting the American people 
from those who would use explosives to do them harm.
  Not many people realize just how few restrictions on the use and sale 
of explosives really exist. While we have increasingly restricted the 
number of people who can obtain and use a firearm, we have been lax in 
extending these prohibitions to explosives.
  For instance, while we prohibit illegal aliens from obtaining a gun, 
we allow them to obtain explosives without restriction. And this same 
divergence applies to those who have been dishonorably discharged from 
the armed forces, those who have renounced U.S. citizenship, people who 
have acted in such a way as to have restraining orders issued against 
them, and those with domestic violence convictions. Each of these 
categories of persons are prohibited from obtaining firearms, but face 
no such prohibition on obtaining explosive material.
  Congress has already made the determination that certain members of 
society should not have access to firearms, and the same logic clearly 
applies to dangerous and destructive explosive materials, materials 
which can result in an equal or even greater loss of life. It is time 
to bring the explosives law into line with gun laws, and this is all my 
bill does. Specifically, the extend the list of persons barred from 
purchasing explosives so that it matched that of people barred from 
purchasing firearms.
  This is a simple bill meant only to correct longstanding gaps and 
loopholes in current law. I urge my colleagues to support the bill, and 
I hope we can quickly move to get this passed and protect Americans 
from future acts of explosive destruction. I ask unanimous consent that 
the text of the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 641

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Explosives Protection Act of 
     2001''.

     SEC. 2. PROHIBITIONS RELATING TO EXPLOSIVE MATERIALS.

       (a) Prohibition of Sale, Delivery, or Transfer of Explosive 
     Materials to Certain Individuals.--Section 842 of title 18, 
     United States Code, is amended by striking subsection (d) and 
     inserting the following:
       ``(d) Prohibition of Sale, Delivery, or Transfer of 
     Explosive Materials to Certain Individuals.--It shall be 
     unlawful for any licensee to knowingly sell, deliver, or 
     transfer any explosive materials to any individual who--
       ``(1) is less than 21 years of age;
       ``(2) is under indictment for, or has been convicted in any 
     court of, a crime punishable by imprisonment for a term 
     exceeding 1 year;
       ``(3) is a fugitive from justice;
       ``(4) is an unlawful user of or addicted to any controlled 
     substance (as defined in section 102 of the Controlled 
     Substances Act (21 U.S.C. 802));
       ``(5) has been adjudicated as a mental defective or has 
     been committed to any mental institution;
       ``(6) being an alien--
       ``(A) is illegally or unlawfully in the United States; or
       ``(B) except as provided in section 845(d), has been 
     admitted to the United States under a nonimmigrant visa (as 
     that term is defined in section 101(a)(26) of the Immigration 
     and Nationality Act (8 U.S.C. 1101(a)(26));
       ``(7) has been discharged from the Armed Forces under 
     dishonorable conditions;
       ``(8) having been a citizen of the United States, has 
     renounced his citizenship;
       ``(9) is subject to a court order that restrains such 
     person from harassing, stalking, or threatening an intimate 
     partner of such person or child of such intimate partner or 
     person, or engaging in other conduct that would place an 
     intimate partner in reasonable fear of bodily injury to the 
     partner or child, except that this paragraph shall only apply 
     to a court order that--
       ``(A) was issued after a hearing of which such person 
     received actual notice, and at which such person had the 
     opportunity to participate; and
       ``(B)(i) includes a finding that such person represents a 
     credible threat to the physical safety of such intimate 
     partner or child; and
       ``(ii) by its terms explicitly prohibits the use, attempted 
     use, or threatened use of physical force against such 
     intimate partner or child that would reasonably be expected 
     to cause bodily injury; or
       ``(10) has been convicted in any court of a misdemeanor 
     crime of domestic violence.''.
       (b) Prohibition on Shipping, Transporting, Possession, or 
     Receipt of Explosives by Certain Individuals.--Section 842 of 
     title 18, United States Code, is amended by striking 
     subsection (i) and inserting the following:
       ``(i) Prohibition on Shipping, Transporting, Possession, or 
     Receipt of Explosives by Certain Individuals.--It shall be 
     unlawful for any person to ship or transport in interstate or 
     foreign commerce, or possess, in or affecting commerce, any 
     explosive, or to receive any explosive that has been shipped 
     or transported in interstate or foreign commerce, if that 
     person--
       ``(1) is less than 21 years of age;
       ``(2) has been convicted in any court, of a crime 
     punishable by imprisonment for a term exceeding 1 year;

[[Page S3059]]

       ``(3) is a fugitive from justice;
       ``(4) is an unlawful user of or addicted to any controlled 
     substance (as defined in section 102 of the Controlled 
     Substances Act (21 U.S.C. 802));
       ``(5) has been adjudicated as a mental defective or who has 
     been committed to a mental institution;
       ``(6) being an alien--
       ``(A) is illegally or unlawfully in the United States; or
       ``(B) except as provided in section 845(d), has been 
     admitted to the United States under a nonimmigrant visa (as 
     that term is defined in section 101(a)(26) of the Immigration 
     and Nationality Act (8 U.S.C. 1101(a)(26));
       ``(7) has been discharged from the Armed Forces under 
     dishonorable conditions;
       ``(8) having been a citizen of the United States, has 
     renounced his citizenship; or
       ``(9) is subject to a court order that--
       ``(A) was issued after a hearing of which such person 
     received actual notice, and at which such person had an 
     opportunity to participate;
       ``(B) restrains such person from harassing, stalking, or 
     threatening an intimate partner of such person or child of 
     such intimate partner or person, or engaging in other conduct 
     that would place an intimate partner in reasonable fear of 
     bodily injury to the partner or child; and
       ``(C)(i) includes a finding that such person represents a 
     credible threat to the physical safety of such intimate 
     partner or child; and
       ``(ii) by its terms explicitly prohibits the use, attempted 
     use, or threatened use of physical force against such 
     intimate partner or child that would reasonably be expected 
     to cause bodily injury; or
       ``(10) has been convicted in any court of a misdemeanor 
     crime of domestic violence.''.
       (c) Exceptions and Waiver for Certain Individuals.--Section 
     845 of title 18, United States Code, is amended by adding at 
     the end the following:
       ``(d) Exceptions and Waiver for Certain Individuals.--
       ``(1) Definitions.--In this subsection--
       ``(A) the term `alien' has the same meaning as in section 
     101(a)(3) of the Immigration and Nationality Act (8 U.S.C. 
     1101(a)(3)); and
       ``(B) the term `nonimmigrant visa' has the same meaning as 
     in section 101(a)(26) of the Immigration and Nationality Act 
     (8 U.S.C. 1101(a)(26)).
       ``(2) Exceptions.--Subsections (d)(5)(B) and (i)(5)(B) of 
     section 842 do not apply to any alien who has been lawfully 
     admitted to the United States pursuant to a nonimmigrant 
     visa, if that alien is--
       ``(A) admitted to the United States for lawful hunting or 
     sporting purposes;
       ``(B) a foreign military personnel on official assignment 
     to the United States;
       ``(C) an official of a foreign government or a 
     distinguished foreign visitor who has been so designated by 
     the Department of State; or
       ``(D) a foreign law enforcement officer of a friendly 
     foreign government entering the United States on official law 
     enforcement business.
       ``(3) Waiver.--
       ``(A) In general.--Any individual who has been admitted to 
     the United States under a nonimmigrant visa and who is not 
     described in paragraph (2), may receive a waiver from the 
     applicability of subsection (d)(5)(B) or (i)(5)(B) of section 
     842, if--
       ``(i) the individual submits to the Attorney General a 
     petition that meets the requirements of subparagraph (B); and
       ``(ii) the Attorney General approves the petition.
       ``(B) Petitions.--Each petition under subparagraph (A)(i) 
     shall--
       ``(i) demonstrate that the petitioner has resided in the 
     United States for a continuous period of not less than 180 
     days before the date on which the petition is submitted under 
     this paragraph; and
       ``(ii) include a written statement from the embassy or 
     consulate of the petitioner, authorizing the petitioner to 
     engage in any activity prohibited under subsection (d) or (i) 
     of section 842, as applicable, and certifying that the 
     petitioner would not otherwise be prohibited from engaging in 
     that activity under subsection (d) or (i) of section 842, as 
     applicable.''.
                                 ______
                                 
      By Mr. TORRICELLI:
  S. 642. A bill to amend part Q of title I of the Omnibus Crime 
Control and Safe Streets Act of 1968 to provide assistance for 
unincorporated neighborhood watch programs; to the Committee on the 
Judiciary.
  Mr. TORRICELLI. Mr. President, I rise today to introduce the 
``Neighborhood Watch Partnership Act.'' This bill will broaden the 
eligibility of groups that may apply for essential funding for 
neighborhood watch activities.
  Communities across the country are finding sensible ways to solve 
local problems. Through partnerships with local police, neighborhood 
watch groups are having a decisive impact on crime. There are almost 
20,000 such groups creating innovative programs that promote community 
involvement in crime prevention techniques. They empower community 
members and organize them against rape, burglary, and all forms of fear 
on the street. They forge bonds between law enforcement and the 
communities they serve.
  Unfortunately, many communities find it difficult to afford the often 
expensive equipment such as cellphones and CBs needed to start a 
neighborhood watch organization. While the COPS program within the 
Department of Justice provides funding for some neighborhood watch 
groups, an organization must incorporate to benefit from the current 
program. A mere 2000 of the nearly 20,000 groups incorporate, however, 
meaning that the vast majority of watch groups cannot apply for funding 
assistance. This makes very little sense.
  The time has come to make a clear commitment to these groups. That is 
why I am introducing a bill to extend COPS funding to unincorporated 
neighborhood watch organizations. The bill would provide grants of up 
to $1950 to these groups. Under current law, either the local police 
chief or sheriff must approve grant requests by unincorporated watch 
groups. We would impose the same requirement on unincorporated groups, 
thus providing accountability for the disbursement of funds.
  Neighborhood watch organizations provide an invaluable service. By 
extending the partnership between community policing and watch group 
organizations, we will boldly encourage small and large communities to 
preserve and create crime prevention tools. We should act now, Mr. 
President, I ask unanimous consent that the text of the bill be printed 
in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 642

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

     SECTION 1. ASSISTANCE FOR UNINCORPORATED NEIGHBORHOOD WATCH 
                   PROGRAMS.

       (a) Short Title.--This Act maybe cited as the 
     ``Neighborhood Watch Partnership Act of 2001''.
       (b) In General.--Section 1701(d) of title I of the Omnibus 
     Crime Control and Safe Streets Act of 1968 (42 U.S.C. 
     3796dd(d)) is amended--
       (1) in paragraph (10), by striking ``and'' at the end;
       (2) in paragraph (11), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(12) provide assistance to unincorporated neighborhood 
     watch organizations approved by the appropriate local police 
     or sheriff's department, in an amount equal to not more than 
     $1950 per organization, for the purchase of citizen band 
     radios, street signs, magnetic signs, flashlights, and other 
     equipment relating to neighborhood watch patrols.''.
       (c) Authorization of Appropriations.--Section 1001(a)(11) 
     of title I of the Omnibus Crime Control and Safe Streets Act 
     of 1968 (42 U.S.C. 3793(a)(11)) is amended--
       (1) in subparagraph (A), by striking clause (vi) and 
     inserting the following:
       ``(vi) $282,625,000 for fiscal year 2002.''; and
       (2) in subparagraph (B) by inserting after ``(B)'' the 
     following: ``Of amounts made available to carry out part Q in 
     each fiscal year $14,625,000 shall be used to carry out 
     section 1701(d)(12).''.
                                 ______
                                 
      By Mr. BAUCUS (for himself, Mr. Kerry, Ms. Landrieu, Mr. Inouye, 
        Mr. Torricelli, Mr. Daschle, Mr. Leahy, Mr. Wyden, Mr. 
        Bingaman, and Mr. Lieberman):
  S. 643. A bill to implement the agreement establishing a United 
States-Jordan free trade area; to the Committee on Finance.
  Mr. BAUCUS. Mr. President, I rise today to introduce legislation to 
implement the United States-Jordan Free Trade Agreement.
  I introduce this legislation on behalf of myself and Senators Kerry, 
Landrieu, Inouye, Torricelli, Daschle, Leahy, Bingaman, Wyden, and 
Lieberman. The same legislation is today being introduced by colleagues 
in the other body.
  The United States-Jordan FTA was signed on October 26, 2000 and 
formally submitted to Congress on January 6.
  For a variety of reasons, it is one of the most significant trade 
achievements in recent years.
  Simply put, the United States-Jordan FTA is a strong trade agreement. 
It eliminates barriers to trade on goods and services across the board.
  The agreement is very much on a par with the FTA with Canada and 
Mexico; the specific provisions of the agreement mirror the United 
States-Israel FTA and the related understanding with the Palestinian 
Authority.

[[Page S3060]]

  Although the volume of trade involved is not likely to have much 
impact on the United States, it should be a significant boon to 
Jordan--and that does benefit the United States.
  Jordan has become one of the United States' best allies in the Middle 
East. Demonstrating considerable courage and leadership, Jordan has 
made peace with Israel and cooperated with the United States on a 
number of diplomatic fronts.
  As the majority leader Senator Lott wrote in a letter to the 
President on March 8 urging approval of the agreement:

       Jordan has been a reliable partner of the United States and 
     has played an important role in America's efforts to achieve 
     a lasting peace in the Middle East. The United States -Jordan 
     Free Trade Agreement is an important and timely symbol of 
     this critical relationship.

  I strongly agree with Senator Lott. I am normally skeptical of using 
geopolitical rationales to change U.S. trade policy, but in this case 
the right geopolitical outcome is also the right trade policy outcome.
  Most of the controversy surrounding the United States-Jordan FTA 
focuses on provisions of the agreement regarding the environment and 
labor.
  Without question, these are significant provisions. They address 
labor rights and environmental issues in the core of the agreement and 
make the issues subject to dispute settlement like all other provisions 
of the agreement.
  That said, the provisions simply obligate both countries to enforce 
their current labor and environmental laws and not weaken their laws 
with the aim of distorting trade.
  Any objective reading of the provisions makes it clear that critics' 
fears of private parties litigating under these portions of the 
agreement or attacking U.S. environmental laws are simply unfounded.
  The agreement is clearly a government-to-government agreement; 
private parties cannot trigger dispute settlement proceedings. I 
believe there is little chance of the United States actually weakening 
its environmental laws, but it is certainly not going to take such a 
step with the aim of distorting trade with Jordan.
  Given Jordan's strong position on labor rights and environmental 
issues and the consultative process of the dispute settlement in the 
agreement, it is quite unlikely these provisions will ever result in 
the imposition of trade sanctions--the stated fear of the critics.
  In fact, in the decade and a half it has been in place, the United 
States-Israel FTA dispute settlement procedures, the model for the 
Jordan FTA, have only been invoked once and, even in that case, 
sanctions were never imposed.
  I suspect the real fear of critics is that the Jordan agreement will 
set a precedent for inclusion of labor and environmental provisions in 
future trade agreements. I understand that. That precedent, however, 
has already been set. Both the world trading system--now represented by 
the World Trade Organization--and the North American Free Trade 
Agreement, NAFTA, address labor and environmental issues.
  In my opinion, all future trade agreements must meaningfully address 
labor and environmental issues to win congressional approval.
  Further, the United States-Jordan FTA has already been negotiated, 
and it has been signed. Even if it was not ultimately approved by the 
Congress, the precedent has already been set with an approved and 
signed agreement. The bell cannot be unrung.
  There is a more serious precedent at stake.
  When President Clinton took office in 1993, I urged him to support 
the NAFTA agreement struck by his predecessor in the White House 
without renegotiation. I did this not because the NAFTA was a perfect 
agreement, it was not. It needed improvement. But certainly there were 
certain areas where improvement was possible.
  I supported it, and I told the President so because it is vital for 
there to be continuity in trade policy, I might add, also in foreign 
policy. Reopening negotiations on an agreement that is already signed 
to address what can only be called a partisan concern threatens the 
credibility of U.S. trade policy.
  Scuttling or renegotiating the United States-Jordan FTA also sets a 
precedent for any new administration to undo the agreements negotiated 
by its predecessor. This would destroy any possibility of bipartisan 
trade policy and discourage our trading partners from negotiating 
seriously with the United States. We simply cannot afford to allow this 
kind of partisan chicanery to overwhelm good trade policy.
  I introduce this implementing legislation for the United States-
Jordan FTA in the hopes it can be rapidly passed and signed into law.
  This is a good agreement. The United States-Jordan FTA advances U.S. 
trade policy as well as Middle East policy. It has wide support from 
labor and environmental groups, as well as from business leaders. The 
United States-Jordan FTA can go far to build a consensus on trade 
policy. It is very important.
  Aside from the concerns over the labor and environmental provisions 
which I have already addressed, no one has raised serious objections to 
this agreement.
  With Jordan's King Abdullah visiting the United States next week, the 
Congress and the administration should move together to approve the 
United States-Jordan FTA.
  I ask unanimous consent to print the bill in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 643

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       This Act may be cited as the ``United States-Jordan Free 
     Trade Area Implementation Act''.

     SEC. 2. PURPOSES.

       The purposes of this Act are--
       (1) to implement the agreement between the United States 
     and Jordan establishing a free trade area;
       (2) to strengthen and develop the economic relations 
     between the United States and Jordan for their mutual 
     benefit; and
       (3) to establish free trade between the 2 nations through 
     the removal of trade barriers.

     SEC. 3. DEFINITIONS.

       For purposes of this Act:
       (1) Agreement.--The term ``Agreement'' means the Agreement 
     between the United States of America and the Hashemite 
     Kingdom of Jordan on the Establishment of a Free Trade Area, 
     entered into on October 24, 2000.
       (2) HTS.--The term ``HTS'' means the Harmonized Tariff 
     Schedule of the United States.

             TITLE I--TARIFF MODIFICATIONS; RULES OF ORIGIN

     SEC. 101. TARIFF MODIFICATIONS.

       (a) Tariff Modifications Provided for in the Agreement.--
     The President may proclaim--
       (1) such modifications or continuation of any duty,
       (2) such continuation of duty-free or excise treatment, or
       (3) such additional duties,
     as the President determines to be necessary or appropriate to 
     carry out article 2.1 of the Agreement and the schedule of 
     duty reductions with respect to Jordan set out in Annex 2.1 
     of the Agreement.
       (b) Other Tariff Modifications.--The President may 
     proclaim--
       (1) such modifications or continuation of any duty,
       (2) such continuation of duty-free or excise treatment, or
       (3) such additional duties,
     as the President determines to be necessary or appropriate to 
     maintain the general level of reciprocal and mutually 
     advantageous concessions with respect to Jordan provided for 
     by the Agreement.

     SEC. 102. RULES OF ORIGIN.

       (a) In General.--
       (1) Eligible articles.--
       (A) In general.--The reduction or elimination of any duty 
     imposed on any article by the United States provided for in 
     the Agreement shall apply only if--
       (i) that article is imported directly from Jordan into the 
     customs territory of the United States; and
       (ii) that article--

       (I) is wholly the growth, product, or manufacture of 
     Jordan; or
       (II) is a new or different article of commerce that has 
     been grown, produced, or manufactured in Jordan and meets the 
     requirements of subparagraph (B).

       (B) Requirements.--
       (i) General rule.--The requirements of this subparagraph 
     are that with respect to an article described in subparagraph 
     (A)(ii)(II), the sum of--

       (I) the cost or value of the materials produced in Jordan, 
     plus
       (II) the direct costs of processing operations performed in 
     Jordan,

     is not less than 35 percent of the appraised value of such 
     article at the time it is entered.

[[Page S3061]]

       (ii) Materials produced in united states.--If the cost or 
     value of materials produced in the customs territory of the 
     United States is included with respect to an article to which 
     this paragraph applies, an amount not to exceed 15 percent of 
     the appraised value of the article at the time it is entered 
     that is attributable to such United States cost or value may 
     be applied toward determining the percentage referred to in 
     clause (i).
       (2) Exclusions.--No article may be considered to meet the 
     requirements of paragraph (1)(A) by virtue of having merely 
     undergone--
       (A) simple combining or packaging operations; or
       (B) mere dilution with water or mere dilution with another 
     substance that does not materially alter the characteristics 
     of the article.
       (b) Direct Costs of Processing Operations.--
       (1) In general.--As used in this section, the term ``direct 
     costs of processing operations'' includes, but is not limited 
     to--
       (A) all actual labor costs involved in the growth, 
     production, manufacture, or assembly of the specific 
     merchandise, including fringe benefits, on-the-job training, 
     and the cost of engineering, supervisory, quality control, 
     and similar personnel; and
       (B) dies, molds, tooling, and depreciation on machinery and 
     equipment which are allocable to the specific merchandise.
       (2) Excluded costs.--The term ``direct costs of processing 
     operations'' does not include costs which are not directly 
     attributable to the merchandise concerned, or are not costs 
     of manufacturing the product, such as--
       (A) profit; and
       (B) general expenses of doing business which are either not 
     allocable to the specific merchandise or are not related to 
     the growth, production, manufacture, or assembly of the 
     merchandise, such as administrative salaries, casualty and 
     liability insurance, advertising, and salesmen's salaries, 
     commissions, or expenses.
       (c) Textile and Apparel Articles.--
       (1) In general.--A textile or apparel article imported 
     directly from Jordan into the customs territory of the United 
     States shall be considered to meet the requirements of 
     paragraph (1)(A) of subsection (a) only if--
       (A) the article is wholly obtained or produced in Jordan;
       (B) the article is a yarn, thread, twine, cordage, rope, 
     cable, or braiding, and--
       (i) the constituent staple fibers are spun in Jordan, or
       (ii) the continuous filament is extruded in Jordan;
       (C) the article is a fabric, including a fabric classified 
     under chapter 59 of the HTS, and the constituent fibers, 
     filaments, or yarns are woven, knitted, needled, tufted, 
     felted, entangled, or transformed by any other fabric-making 
     process in Jordan; or
       (D) the article is any other textile or apparel article 
     that is wholly assembled in Jordan from its component pieces.
       (2) Definition.--For purposes of paragraph (1), an article 
     is ``wholly obtained or produced in Jordan'' if it is wholly 
     the growth, product, or manufacture of Jordan.
       (3) Special rules.--(A) Notwithstanding paragraph (1)(D) 
     and except as provided in subparagraphs (C) and (D) of this 
     paragraph, subparagraph (A), (B), or (C) of paragraph (1), as 
     appropriate, shall determine whether a good that is 
     classified under one of the following headings or subheadings 
     of the HTS shall be considered to meet the requirements of 
     paragraph (1)(A) of subsection (a): 5609, 5807, 5811, 
     6209.20.50.40, 6213, 6214, 6301, 6302, 6304, 6305, 6306, 
     6307.10, 6307.90, 6308, and 9404.90.
       (B) Notwithstanding paragraph (1)(D) and except as provided 
     in subparagraphs (C) and (D) of this paragraph, a textile or 
     apparel article which is knit-to-shape in Jordan shall be 
     considered to meet the requirements of paragraph (1)(A) of 
     subsection (a).
       (C) Notwithstanding paragraph (1)(D), a good classified 
     under heading 6117.10, 6213.00, 6214.00. 6302.22, 6302.29, 
     6302.52, 6302.53, 6302.59, 6302.92, 6302.93, 6302.99, 
     6303.92, 6303.99, 6304.19, 6304.93, 6304.99, 9404.90.85, or 
     9404.90.95 of the HTS, except for a good classified under any 
     such heading as of cotton or of wool or consisting of fiber 
     blends containing 16 percent or more by weight of cotton, 
     shall be considered to meet the requirements of paragraph 
     (1)(A) of subsection (a) if the fabric in the good is both 
     dyed and printed in Jordan, and such dyeing and printing is 
     accompanied by 2 or more of the following finishing 
     operations: bleaching, shrinking, fulling, napping, decating, 
     permanent stiffening, weighting, permanent embossing, or 
     moireing.
       (D) Notwithstanding paragraph (1)(C), a fabric classified 
     under the HTS as of silk, cotton, man-made fiber, or 
     vegetable fiber shall be considered to meet the requirements 
     of paragraph (1)(A) of subsection (a) if the fabric is both 
     dyed and printed in Jordan, and such dyeing and printing is 
     accompanied by 2 or more of the following finishing 
     operations: bleaching, shrinking, fulling, napping, decating, 
     permanent stiffening, weighting, permanent embossing, or 
     moireing.
       (4) Multicountry rule.--If the origin of a textile or 
     apparel article cannot be determined under paragraph (1) or 
     (3), then that article shall be considered to meet the 
     requirements of paragraph (1)(A) of subsection (a) if--
       (A) the most important assembly or manufacturing process 
     occurs in Jordan; or
       (B) if the applicability of paragraph (1)(A) of subsection 
     (a) cannot be determined under subparagraph (A), the last 
     important assembly or manufacturing occurs in Jordan.
       (d) Exclusion.--A good shall not be considered to meet the 
     requirements of paragraph (1)(A) of subsection (a) if the 
     good--
       (1) is imported into Jordan, and, at the time of 
     importation, would be classified under heading 0805 of the 
     HTS; and
       (2) is processed in Jordan into a good classified under any 
     of subheadings 2009.11 through 2009.30 of the HTS.
       (e) Regulations.--The Secretary of the Treasury, after 
     consultation with the United States Trade Representative, 
     shall prescribe such regulations as may be necessary to carry 
     out this section.

                     TITLE II--RELIEF FROM IMPORTS

                     Subtitle A--General Provisions

     SEC. 201. DEFINITIONS.

       As used in this title:
       (1) Commission.--The term ``Commission'' means the United 
     States International Trade Commission.
       (2) Jordanian article.--The term ``Jordanian article'' 
     means an article that qualifies for reduction or elimination 
     of a duty under section 102.

     Subtitle B--Relief From Imports Benefiting From The Agreement

     SEC. 211. COMMENCING OF ACTION FOR RELIEF.

       (a) Filing of Petition.--
       (1) In general.--A petition requesting action under this 
     part for the purpose of adjusting to the obligations of the 
     United States under the Agreement may be filed with the 
     Commission by an entity, including a trade association, firm, 
     certified or recognized union, or group of workers that is 
     representative of an industry. The Commission shall transmit 
     a copy of any petition filed under this subsection to the 
     United States Trade Representative.
       (2) Provisional relief.--An entity filing a petition under 
     this subsection may request that provisional relief be 
     provided as if the petition had been filed under section 
     202(a) of the Trade Act of 1974.
       (3) Critical circumstances.--Any allegation that critical 
     circumstances exist shall be included in the petition.
       (b) Investigation and Determination.--
       (1) In general.--Upon the filing of a petition under 
     subsection (a), the Commission, unless subsection (d) 
     applies, shall promptly initiate an investigation to 
     determine whether, as a result of the reduction or 
     elimination of a duty provided for under the Agreement, a 
     Jordanian article is being imported into the United States in 
     such increased quantities, in absolute terms or relative to 
     domestic production, and under such conditions that imports 
     of the Jordanian article alone constitute a substantial cause 
     of serious injury or threat thereof to the domestic industry 
     producing an article that is like, or directly competitive 
     with, the imported article.
       (2) Causation.--For purposes of this part, a Jordanian 
     article is being imported into the United States in increased 
     quantities as a result of the reduction or elimination of a 
     duty provided for under the Agreement if the reduction or 
     elimination is a cause that contributes significantly to the 
     increase in imports. Such cause need not be equal to or 
     greater than any other cause.
       (c) Applicable Provisions.--The following provisions of 
     section 202 of the Trade Act of 1974 (19 U.S.C. 2252) apply 
     with respect to any investigation initiated under subsection 
     (b):
       (1) Paragraphs (1)(B) and (3) of subsection (b).
       (2) Subsection (c).
       (3) Subsection (d).
       (d) Articles Exempt From Investigation.--No investigation 
     may be initiated under this section with respect to any 
     Jordanian article if import relief has been provided under 
     this part with respect to that article.

     SEC. 212. COMMISSION ACTION ON PETITION.

       (a) Determination.--By no later than 120 days (180 days if 
     critical circumstances have been alleged) after the date on 
     which an investigation is initiated under section 211(b) with 
     respect to a petition, the Commission shall make the 
     determination required under that section.
       (b) Additional Finding and Recommendation if Determination 
     Affirmative.--If the determination made by the Commission 
     under subsection (a) with respect to imports of an article is 
     affirmative, the Commission shall find, and recommend to the 
     President in the report required under subsection (c), the 
     amount of import relief that is necessary to remedy or 
     prevent the injury found by the Commission in the 
     determination and to facilitate the efforts of the domestic 
     industry to make a positive adjustment to import competition. 
     The import relief recommended by the Commission under this 
     subsection shall be limited to that described in section 
     213(c).
       (c) Report to President.--No later than the date that is 30 
     days after the date on which a determination is made under 
     subsection (a) with respect to an investigation, the 
     Commission shall submit to the President a report that shall 
     include--
       (1) a statement of the basis for the determination;
       (2) dissenting and separate views; and
       (3) any finding made under subsection (b) regarding import 
     relief.

[[Page S3062]]

       (d) Public Notice.--Upon submitting a report to the 
     President under subsection (c), the Commission shall promptly 
     make public such report (with the exception of information 
     which the Commission determines to be confidential) and shall 
     cause a summary thereof to be published in the Federal 
     Register.
       (e) Applicable Provisions.--For purposes of this part, the 
     provisions of paragraphs (1), (2), and (3) of section 330(d) 
     of the Tariff Act of 1930 (19 U.S.C. 1330(d)) shall be 
     applied with respect to determinations and findings made 
     under this section as if such determinations and findings 
     were made under section 202 of the Trade Act of 1974 (19 
     U.S.C. 2252).

     SEC. 213. PROVISION OF RELIEF.

       (a) In General.--No later than the date that is 30 days 
     after the date on which the President receives the report of 
     the Commission containing an affirmative determination of the 
     Commission under section 212(a), the President shall provide 
     relief from imports of the article that is the subject of 
     such determination to the extent that the President 
     determines necessary to prevent or remedy the injury found by 
     the Commission and to facilitate the efforts of the domestic 
     industry to make a positive adjustment to import competition, 
     unless the President determines that the provision of such 
     relief is not in the national economic interest of the United 
     States or, in extraordinary circumstances, that the provision 
     of such relief would cause serious harm to the national 
     security of the United States.
       (b) National Economic Interest.--The President may 
     determine under subsection (a) that providing import relief 
     is not in the national economic interest of the United States 
     only if the President finds that taking such action would 
     have an adverse impact on the United States economy clearly 
     greater than the benefits of taking such action.
       (c) Nature of Relief.--The import relief (including 
     provisional relief) that the President is authorized to 
     provide under this part with respect to imports of an article 
     is--
       (1) the suspension of any further reduction provided for 
     under the United States Schedule to Annex 2.1 of the 
     Agreement in the duty imposed on that article;
       (2) an increase in the rate of duty imposed on such article 
     to a level that does not exceed the lesser of--
       (A) the column 1 general rate of duty imposed under the HTS 
     on like articles at the time the import relief is provided; 
     or
       (B) the column 1 general rate of duty imposed under the HTS 
     on like articles on the day before the date on which the 
     Agreement enters into force; or
       (3) in the case of a duty applied on a seasonal basis to 
     that article, an increase in the rate of duty imposed on the 
     article to a level that does not exceed the column 1 general 
     rate of duty imposed under the HTS on the article for the 
     corresponding season occurring immediately before the date on 
     which the Agreement enters into force.
       (d) Period of Relief.--The import relief that the President 
     is authorized to provide under this section may not exceed 4 
     years.
       (e) Rate After Termination of Import Relief.--When import 
     relief under this part is terminated with respect to an 
     article--
       (1) the rate of duty on that article after such termination 
     and on or before December 31 of the year in which termination 
     occurs shall be the rate that, according to the United States 
     Schedule to Annex 2.1 of the Agreement for the staged 
     elimination of the tariff, would have been in effect 1 year 
     after the initiation of the import relief action under 
     section 211; and
       (2) the tariff treatment for that article after December 31 
     of the year in which termination occurs shall be, at the 
     discretion of the President, either--
       (A) the rate of duty conforming to the applicable rate set 
     out in the United States Schedule to Annex 2.1; or
       (B) the rate of duty resulting from the elimination of the 
     tariff in equal annual stages ending on the date set out in 
     the United States Schedule to Annex 2.1 for the elimination 
     of the tariff.

     SEC. 214. TERMINATION OF RELIEF AUTHORITY.

       (a) General Rule.--Except as provided in subsection (b), no 
     import relief may be provided under this part after the date 
     that is 15 years after the date on which the Agreement enters 
     into force.
       (b) Exception.--Import relief may be provided under this 
     part in the case of a Jordanian article after the date on 
     which such relief would, but for this subsection, terminate 
     under subsection (a), but only if the Government of Jordan 
     consents to such provision.

     SEC. 215. COMPENSATION AUTHORITY.

       For purposes of section 123 of the Trade Act of 1974 (19 
     U.S.C. 2133), any import relief provided by the President 
     under section 213 shall be treated as action taken under 
     chapter 1 of title II of such Act.

     SEC. 216. SUBMISSION OF PETITIONS.

       A petition for import relief may be submitted to the 
     Commission under--
       (1) this part;
       (2) chapter 1 of title II of the Trade Act of 1974; or
       (3) under both this part and such chapter 1 at the same 
     time, in which case the Commission shall consider such 
     petitions jointly.

       Subtitle C--Cases Under Title II Of The Trade Act of 1974

     SEC. 221. FINDINGS AND ACTION ON JORDANIAN IMPORTS.

       (a) Effect of Imports.--If, in any investigation initiated 
     under chapter 1 of title II of the Trade Act of 1974, the 
     Commission makes an affirmative determination (or a 
     determination which the President may treat as an affirmative 
     determination under such chapter by reason of section 330(d) 
     of the Tariff Act of 1930), the Commission shall also find 
     (and report to the President at the time such injury 
     determination is submitted to the President) whether imports 
     of the article from Jordan are a substantial cause of serious 
     injury or threat thereof.
       (b) Presidential Action Regarding Jordanian Imports.--In 
     determining the nature and extent of action to be taken under 
     chapter 1 of title II of the Trade Act of 1974, the President 
     shall determine whether imports from Jordan are a substantial 
     cause of the serious injury found by the Commission and, if 
     such determination is in the negative, may exclude from such 
     action imports from Jordan.

     SEC. 222. TECHNICAL AMENDMENT.

       Section 202(a)(8) of the Trade Act of 1974 (19 U.S.C. 
     2252(a)(8)) is amended in the first sentence--
       (1) by striking ``and part 1'' and inserting ``, part 1''; 
     and
       (2) by inserting before the period at the end ``, and title 
     II of the United States-Jordan Free Trade Area Implementation 
     Act''.

                       TITLE III--TEMPORARY ENTRY

     SEC. 301. NONIMMIGRANT TRADERS AND INVESTORS.

       Upon the basis of reciprocity secured by the Agreement, an 
     alien who is a national of Jordan (and any spouse or child 
     (as defined in section 101(b)(1) of the Immigration and 
     Nationality Act (8 U.S.C. 1101(b)(1)) of the alien, if 
     accompanying or following to join the alien) shall be 
     considered as entitled to enter the United States under and 
     in pursuance of the provisions of the Agreement as a 
     nonimmigrant described in section 101(a)(15)(E) of the 
     Immigration and Nationality Act (8 U.S.C. 1101(a)(15)(E)), if 
     the entrance is solely for a purpose described in clause (i) 
     or (ii) of such section and the alien is otherwise admissible 
     to the United States as such a nonimmigrant.

                      TITLE IV--GENERAL PROVISIONS

     SEC. 401. RELATIONSHIP OF THE AGREEMENT TO UNITED STATES AND 
                   STATE LAW.

       (a) Relationship of Agreement to United States Law.--
       (1) United states law to prevail in conflict.--No provision 
     of the Agreement, nor the application of any such provision 
     to any person or circumstance, that is inconsistent with any 
     law of the United States shall have effect.
       (2) Construction.--Nothing in this Act shall be construed--
       (A) to amend or modify any law of the United States, or
       (B) to limit any authority conferred under any law of the 
     United States,
     unless specifically provided for in this Act.
       (b) Relationship of Agreement to State Law.--
       (1) Legal challenge.--No State law, or the application 
     thereof, may be declared invalid as to any person or 
     circumstance on the ground that the provision or application 
     is inconsistent with the Agreement, except in an action 
     brought by the United States for the purpose of declaring 
     such law or application invalid.
       (2) Definition of state law.--For purposes of this 
     subsection, the term ``State law'' includes--
       (A) any law of a political subdivision of a State; and
       (B) any State law regulating or taxing the business of 
     insurance.
       (c) Effect of Agreement With Respect to Private Remedies.--
     No person other than the United States--
       (1) shall have any cause of action or defense under the 
     Agreement; or
       (2) may challenge, in any action brought under any 
     provision of law, any action or inaction by any department, 
     agency, or other instrumentality of the United States, any 
     State, or any political subdivision of a State on the ground 
     that such action or inaction is inconsistent with the 
     Agreement.

     SEC. 402. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated for each fiscal 
     year after fiscal year 2001 to the Department of Commerce not 
     more than $100,000 for the payment of the United States share 
     of the expenses incurred in dispute settlement proceedings 
     under article 17 of the Agreement.

     SEC. 403. IMPLEMENTING REGULATIONS.

       After the date of enactment of this Act--
       (1) the President may proclaim such actions, and
       (2) other appropriate officers of the United States may 
     issue such regulations,

     as may be necessary to ensure that any provision of this Act, 
     or amendment made by this Act, that takes effect on the date 
     the Agreement enters into force is appropriately implemented 
     on such date, but no such proclamation or regulation may have 
     an effective date earlier than the date the Agreement enters 
     into force.

     SEC. 404. EFFECTIVE DATES; EFFECT OF TERMINATION.

       (a) Effective Dates.--Except as provided in subsection (b), 
     the provisions of this Act and the amendments made by this 
     Act take effect on the date the Agreement enters into force.
       (b) Exceptions.--Sections 1 through 3 and this title take 
     effect on the date of the enactment of this Act.

[[Page S3063]]

       (c) Termination of the Agreement.--On the date on which the 
     Agreement ceases to be in force, the provisions of this Act 
     (other than this subsection) and the amendments made by this 
     Act, shall cease to have effect.
                                 ______
                                 
      By Mr. SESSIONS (for himself, Mr. Gramm, Mr. Kyl, Mr. Inhofe, Mr. 
        Shelby, Mr. Smith of New Hampshire, Mr. Crapo, Mr. Hagel, Mr. 
        Helms, and Mr. Fitzgerald):
  S.J. Res. 11. A joint resolution proposing an amendment to the 
Constitution of the United States to require two-thirds majorities for 
bills increasing taxes; to the Committee on the Judiciary.
  Mr. SESSIONS. Mr. President, I rise today to introduce a resolution 
to amend the Constitution of the United States, requiring a two-thirds 
majority vote of both houses of Congress to levy a new tax or increase 
the rate of an existing tax.
  I call this the tax limitation amendment, and I am proud to be joined 
in this effort by Senators Gramm of Texas, Kyl, Inhofe, Shelby, Smith 
of New Hampshire, Fitzgerald, Crapo, Hagel, and Helms.
  In 1997, Congress balanced its checkbook for the first time in 29 
years, and we are now enjoying an era of unprecedented budget 
surpluses.
  Unfortunately, the tax burden on the American people is also rising 
to unprecedented levels. Today, federal tax revenues make up 20.6 
percent of our nation's Gross Domestic Product, GDP, up from 17.6 
percent in 1993.
  This has had an enormous impact on our economy, and it has placed an 
unfair burden on the average taxpayer.
  It is also clear the American people are frustrated with the 
increasing amount of government spending, and they are tired of the 
federal government reaching further into their wallets to pay for new 
spending and new programs.
  Today, it is far too easy for Congress to go on a spending spree and 
then send the bill to the taxpayers.
  This amendment is important for many reasons, but most importantly, 
it will help restore fiscal responsibility and discipline in our budget 
process.
  We need to make it more difficult for Congress to raise taxes, which 
will put more pressure on us to control spending.
  This resolution has been supported by a number of taxpayer groups 
including the Americans for Tax Reform, the Citizens Against Government 
Waste, the American Conservative Union, and the U.S. Chamber of 
Commerce. It has enjoyed broad support in previous years, and I would 
like to invite other Senators to join me in this effort and cosponsor 
this resolution.
  I ask unanimous consent that the text of the resolution be printed in 
the Record.
  There being no objection, the joint resolution was ordered to be 
printed in the Record, as follows:

                              S.J. Res. 11

       Resolved by the Senate and House of Representatives of the 
     United States of America in Congress assembled (two-thirds of 
     each House concurring therein), That the following article is 
     proposed as an amendment to the Constitution of the United 
     States, which shall be valid to all intents and purposes as 
     part of the Constitution when ratified by the legislatures of 
     three-fourths of the several States within 7 years after the 
     date of its submission for ratification:

                              ``Article --

       ``Section 1. Any bill to levy a new tax or increase the 
     rate or base of any tax may pass only by a two-thirds 
     majority of the whole number of each House of Congress.
       ``Section 2. The Congress may waive section 1 when a 
     declaration of war is in effect. The Congress may also waive 
     section 1 when the United States is engaged in military 
     conflict which causes an imminent and serious threat to 
     national security and is so declared by a joint resolution, 
     adopted by a majority of the whole number of each House, 
     which becomes law. Any provision of law which would, standing 
     alone, be subject to section 1 but for this section and which 
     becomes law pursuant to such a waiver shall be effective for 
     not longer than 2 years.
       ``Section 3. All votes taken by the House of 
     Representatives or the Senate under this article shall be 
     determined by yeas and nays and the names of persons voting 
     for and against shall be entered on the Journal of each House 
     respectively.''.
                                 ______
                                 
      By Mr. SMITH of New Hampshire:
  S.J. Res. 12. A joint resolution granting the consent of Congress to 
the International Emergency Management Assistance Memorandum of 
Understanding; to the Committee on the Judiciary.
  Mr. SMITH of New Hampshire. Mr. President, I ask unanimous consent 
that the text of the bill be printed in the Record.
  There being no objection, the joint resolution was ordered to be 
printed in the Record, as follows:

                              S.J. Res. 12

       Resolved by the Senate and House of Representatives of the 
     United States of America in Congress assembled,

     SECTION 1. CONGRESSIONAL CONSENT.

       Congress consents to the International Emergency Management 
     Assistance Memorandum of Understanding entered into between 
     the States of Maine, New Hampshire, Vermont, Massachusetts, 
     Rhode Island, and Connecticut and the Provinces of Quebec, 
     New Brunswick, Prince Edward Island, Nova Scotia and 
     Newfoundland. The compact is substantially as follows:

     ``Article I--International Emergency Management Assistance 
       Memorandum of Understanding Purpose and Authorities

       ``The International Emergency Management Assistance 
     Memorandum of Understanding, hereinafter referred to as the 
     `compact,' is made and entered into by and among such of the 
     jurisdictions as shall enact or adopt this compact, 
     hereinafter referred to as `party jurisdictions.' For the 
     purposes of this agreement, the term `jurisdictions' may 
     include any or all of the States of Maine, New Hampshire, 
     Vermont, Massachusetts, Rhode Island, and Connecticut and the 
     Provinces of Quebec, New Brunswick, Prince Edward Island, 
     Nova Scotia and Newfoundland, and such other states and 
     provinces as may hereafter become a party to this compact.
       ``The purpose of this compact is to provide for the 
     possibility of mutual assistance among the jurisdictions 
     entering into this compact in managing any emergency or 
     disaster when the affected jurisdiction or jurisdictions ask 
     for assistance, whether arising from natural disaster, 
     technological hazard, manmade disaster or civil emergency 
     aspects of resources shortages.
       ``This compact also provides for the process of planning 
     mechanisms among the agencies responsible and for mutual 
     cooperation, including, if need be, emergency-related 
     exercises, testing, or other training activities using 
     equipment and personnel simulating performance of any aspect 
     of the giving and receiving of aid by party jurisdictions or 
     subdivisions of party jurisdictions during emergencies, with 
     such actions occurring outside actual declared emergency 
     periods. Mutual assistance in this compact may include the 
     use of emergency forces by mutual agreement among party 
     jurisdictions.

     ``Article II--General Implementation

       ``Each party jurisdiction entering into this compact 
     recognizes that many emergencies may exceed the capabilities 
     of a party jurisdiction and that intergovernmental 
     cooperation is essential in such circumstances. Each 
     jurisdiction further recognizes that there will be 
     emergencies that may require immediate access and present 
     procedures to apply outside resources to make a prompt and 
     effective response to such an emergency because few, if any, 
     individual jurisdictions have all the resources they need in 
     all types of emergencies or the capability of delivering 
     resources to areas where emergencies exist.
       ``The prompt, full, and effective utilization of resources 
     of the participating jurisdictions, including any resources 
     on hand or available from any other source that are essential 
     to the safety, care, and welfare of the people in the event 
     of any emergency or disaster, shall be the underlying 
     principle on which all articles of this compact are 
     understood.
       ``On behalf of the party jurisdictions participating in the 
     compact, the legally designated official who is assigned 
     responsibility for emergency management is responsible for 
     formulation of the appropriate inter-jurisdictional mutual 
     aid plans and procedures necessary to implement this compact, 
     and for recommendations to the jurisdiction concerned with 
     respect to the amendment of any statutes, regulations, or 
     ordinances required for that purpose.

     ``Article III--Party Jurisdiction Responsibilities

       ``(a) Formulate Plans and Programs.--It is the 
     responsibility of each party jurisdiction to formulate 
     procedural plans and programs for inter-jurisdictional 
     cooperation in the performance of the responsibilities listed 
     in this section. In formulating and implementing such plans 
     and programs the party jurisdictions, to the extent 
     practical, shall--
       ``(1) review individual jurisdiction hazards analyses that 
     are available and, to the extent reasonably possible, 
     determine all those potential emergencies the party 
     jurisdictions might jointly suffer, whether due to natural 
     disaster, technological hazard, man-made disaster or 
     emergency aspects of resource shortages;
       ``(2) initiate a process to review party jurisdictions' 
     individual emergency plans and develop a plan that will 
     determine the mechanism for the inter-jurisdictional 
     cooperation;
       ``(3) develop inter-jurisdictional procedures to fill any 
     identified gaps and to resolve any identified inconsistencies 
     or overlaps in existing or developed plans;
       ``(4) assist in warning communities adjacent to or crossing 
     jurisdictional boundaries;

[[Page S3064]]

       ``(5) protect and ensure delivery of services, medicines, 
     water, food, energy and fuel, search and rescue, and critical 
     lifeline equipment, services and resources, both human and 
     material to the extent authorized by law;
       ``(6) inventory and agree upon procedures for the inter-
     jurisdictional loan and delivery of human and material 
     resources, together with procedures for reimbursement or 
     forgiveness; and
       ``(7) provide, to the extent authorized by law, for 
     temporary suspension of any statutes or ordinances, over 
     which the province or state has jurisdiction, that impede the 
     implementation of the responsibilities described in this 
     subsection.
       ``(b) Request Assistance.--The authorized representative of 
     a party jurisdiction may request assistance of another party 
     jurisdiction by contacting the authorized representative of 
     that jurisdiction. These provisions only apply to requests 
     for assistance made by and to authorized representatives. 
     Requests may be verbal or in writing. If verbal, the request 
     must be confirmed in writing within 15 days of the verbal 
     request. Requests must provide the following information:
       ``(1) A description of the emergency service function for 
     which assistance is needed and of the mission or missions, 
     including but not limited to fire services, emergency 
     medical, transportation, communications, public works and 
     engineering, building inspection, planning and information 
     assistance, mass care, resource support, health and medical 
     services, and search and rescue.
       ``(2) The amount and type of personnel, equipment, 
     materials, and supplies needed and a reasonable estimate of 
     the length of time they will be needed.
       ``(3) The specific place and time for staging of the 
     assisting party's response and a point of contact at the 
     location.
       ``(c) Consultation among party jurisdiction officials.--
     There shall be frequent consultation among the party 
     jurisdiction officials who have assigned emergency management 
     responsibilities, such officials collectively known 
     hereinafter as the International Emergency Management Group, 
     and other appropriate representatives of the party 
     jurisdictions with free exchange of information, plans, and 
     resource records relating to emergency capabilities to the 
     extent authorized by law.

     ``Article IV--Limitation

       ``Any party jurisdiction requested to render mutual aid or 
     conduct exercises and training for mutual aid shall undertake 
     to respond as soon as possible, except that it is understood 
     that the jurisdiction rendering aid may withhold or recall 
     resources to the extent necessary to provide reasonable 
     protection for that jurisdiction. Each party jurisdiction 
     shall afford to the personnel of the emergency forces of any 
     party jurisdiction, while operating within its jurisdictional 
     limits under the terms and conditions of this compact and 
     under the operational control of an officer of the requesting 
     party, the same powers, duties, rights, privileges, and 
     immunities as are afforded similar or like forces of the 
     jurisdiction in which they are performing emergency services. 
     Emergency forces continue under the command and control of 
     their regular leaders, but the organizational units come 
     under the operational control of the emergency services 
     authorities of the jurisdiction receiving assistance. These 
     conditions may be activated, as needed, by the jurisdiction 
     that is to receive assistance or upon commencement of 
     exercises or training for mutual aid and continue as long as 
     the exercises or training for mutual aid are in progress, the 
     emergency or disaster remains in effect or loaned resources 
     remain in the receiving jurisdiction or jurisdictions, 
     whichever is longer. The receiving jurisdiction is 
     responsible for informing the assisting jurisdictions of the 
     specific moment when services will no longer be required.

     ``Article V--Licenses and Permits

       ``Whenever a person holds a license, certificate, or other 
     permit issued by any jurisdiction party to the compact 
     evidencing the meeting of qualifications for professional, 
     mechanical, or other skills, and when such assistance is 
     requested by the receiving party jurisdiction, such person is 
     deemed to be licensed, certified, or permitted by the 
     jurisdiction requesting assistance to render aid involving 
     such skill to meet an emergency or disaster, subject to such 
     limitations and conditions as the requesting jurisdiction 
     prescribes by Executive order or otherwise.

     ``Article VI--Liability

       ``Any person or entity of a party jurisdiction rendering 
     aid in another jurisdiction pursuant to this compact are 
     considered agents of the requesting jurisdiction for tort 
     liability and immunity purposes. Any person or entity 
     rendering aid in another jurisdiction pursuant to this 
     compact are not liable on account of any act or omission in 
     good faith on the part of such forces while so engaged or on 
     account of the maintenance or use of any equipment or 
     supplies in connection therewith. Good faith in this article 
     does not include willful misconduct, gross negligence, or 
     recklessness.

     ``Article VII--Supplementary Agreements

       ``Because it is probable that the pattern and detail of the 
     machinery for mutual aid among 2 or more jurisdictions may 
     differ from that among the jurisdictions that are party to 
     this compact, this compact contains elements of a broad base 
     common to all jurisdictions, and nothing in this compact 
     precludes any jurisdiction from entering into supplementary 
     agreements with another jurisdiction or affects any other 
     agreements already in force among jurisdictions. 
     Supplementary agreements may include, but are not limited to, 
     provisions for evacuation and reception of injured and other 
     persons and the exchange of medical, fire, public utility, 
     reconnaissance, welfare, transportation and communications 
     personnel, equipment, and supplies.

     ``Article VIII--Workers' Compensation and Death Benefits

       ``Each party jurisdiction shall provide, in accordance with 
     its own laws, for the payment of workers' compensation and 
     death benefits to injured members of the emergency forces of 
     that jurisdiction and to representatives of deceased members 
     of those forces if the members sustain injuries or are killed 
     while rendering aid pursuant to this compact, in the same 
     manner and on the same terms as if the injury or death were 
     sustained within their own jurisdiction.

     ``Article IX--Reimbursement

       ``Any party jurisdiction rendering aid in another 
     jurisdiction pursuant to this compact shall, if requested, be 
     reimbursed by the party jurisdiction receiving such aid for 
     any loss or damage to, or expense incurred in, the operation 
     of any equipment and the provision of any service in 
     answering a request for aid and for the costs incurred in 
     connection with those requests. An aiding party jurisdiction 
     may assume in whole or in part any such loss, damage, 
     expense, or other cost or may loan such equipment or donate 
     such services to the receiving party jurisdiction without 
     charge or cost. Any 2 or more party jurisdictions may enter 
     into supplementary agreements establishing a different 
     allocation of costs among those jurisdictions. Expenses under 
     article VIII are not reimbursable under this section.

     ``Article X--Evacuation

       ``Each party jurisdiction shall initiate a process to 
     prepare and maintain plans to facilitate the movement of and 
     reception of evacuees into its territory or across its 
     territory, according to its capabilities and powers. The 
     party jurisdiction from which the evacuees came shall assume 
     the ultimate responsibility for the support of the evacuees, 
     and after the termination of the emergency or disaster, for 
     the repatriation of such evacuees.

     ``Article XI--Implementation

       ``(a) This compact is effective upon its execution or 
     adoption by any 2 jurisdictions, and is effective as to any 
     other jurisdiction upon its execution or adoption thereby: 
     subject to approval or authorization by the United States 
     Congress, if required, and subject to enactment of provincial 
     or State legislation that may be required for the 
     effectiveness of the Memorandum of Understanding.
       ``(b) Any party jurisdiction may withdraw from this 
     compact, but the withdrawal does not take effect until 30 
     days after the governor or premier of the withdrawing 
     jurisdiction has given notice in writing of such withdrawal 
     to the governors or premiers of all other party 
     jurisdictions. The action does not relieve the withdrawing 
     jurisdiction from obligations assumed under this compact 
     prior to the effective date of withdrawal.
       ``(c) Duly authenticated copies of this compact in the 
     French and English languages and of such supplementary 
     agreements as may be entered into shall, at the time of their 
     approval, be deposited with each of the party jurisdictions.

     ``Article XII--Severability

       ``This compact is construed to effectuate the purposes 
     stated in Article I. If any provision of this compact is 
     declared unconstitutional or the applicability of the compact 
     to any person or circumstances is held invalid, the validity 
     of the remainder of this compact and the applicability of the 
     compact to other persons and circumstances are not affected.

     ``Article XIII--Consistency of Language

       ``The validity of the arrangements and agreements consented 
     to in this compact shall not be affected by any insubstantial 
     difference in form or language as may be adopted by the 
     various states and provinces.

     ``Article XIV--Amendment

       ``This compact may be amended by agreement of the party 
     jurisdictions.''.

     SEC. 2. INCONSISTENCY OF LANGUAGE.

       The validity of the arrangements consented to by this Act 
     shall not be affected by any insubstantial difference in 
     their form or language as adopted by the States and 
     provinces.

     SEC. 3. RIGHT TO ALTER, AMEND, OR REPEAL.

       The right to alter, amend, or repeal this Act is hereby 
     expressly reserved.

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