[Congressional Record Volume 147, Number 71 (Tuesday, May 22, 2001)]
[Senate]
[Pages S5470-S5482]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 763. Mr. GRAHAM (for himself and Mr. Corzine) submitted an 
amendment intended to be proposed by him to the bill H.R. 1836, to 
provide for reconciliation pursuant to section 104 of the concurrent 
resolution on the budget for fiscal year 2002; which was ordered to lie 
on the table; as follows:

       On page 9, in the last column of the table between lines 11 
     and 12, strike ``38.6%'', ``37.6%'', and ``36%'' and insert 
     ``39.6%'', ``38.6%'', and ``37.6%'', respectively.
       On page 314, after line 21, add the following:

           Subtitle B--Long-Term Care and Retirement Security

     SEC. __. TREATMENT OF PREMIUMS ON QUALIFIED LONG-TERM CARE 
                   INSURANCE CONTRACTS.

       (a) In General.--Part VII of subchapter B of chapter 1 
     (relating to additional itemized deductions), as amended by 
     this Act, is amended by redesignating section 223 as section 
     224 and by inserting after section 222 the following new 
     section:

     ``SEC. 223. PREMIUMS ON QUALIFIED LONG-TERM CARE INSURANCE 
                   CONTRACTS.

       ``(a) In General.--In the case of an individual, there 
     shall be allowed as a deduction an amount equal to the 
     applicable percentage of the amount of eligible long-term 
     care premiums (as defined in section 213(d)(10)) paid during 
     the taxable year for coverage for the taxpayer, his spouse, 
     and dependents under a qualified long-term care insurance 
     contract (as defined in section 7702B(b)).
       ``(b) Applicable Percentage.--For purposes of subsection 
     (a)--
       ``(1) In general.--Except as otherwise provided in this 
     subsection, the applicable percentage shall be determined in 
     accordance with the following table based on the number of 
     years of continuous coverage (as of the close of the taxable 
     year) of the individual under any qualified long-term care 
     insurance contracts (as defined in section 7702B(b)):

``If the number of yearsThe applicable long-term care percentage is--  
      Less than 1..................................................60  
      At least 1 but less than 2...................................70  
      At least 2 but less than 3...................................80  
      At least 3 but less than 4...................................90  
      At least 4.................................................100.  
       ``(2) Special rules for individuals who have attained age 
     55.--In the case of an individual who has attained age 55 as 
     of the close of the taxable year, the following table shall 
     be substituted for the table in paragraph (1).

``If the number of yearsThe applicable long-term care percentage is--  
      Less than 1..................................................70  
      At least 1 but less than 2...................................85  
      At least 2.................................................100.  
       ``(3) Only coverage after 2000 taken into account.--Only 
     coverage for periods after December 31, 2000, shall be taken 
     into account under this subsection.
       ``(4) Continuous coverage.--An individual shall not fail to 
     be treated as having continuous coverage if the aggregate 
     breaks in coverage during any 1-year period are less than 60 
     days.
       ``(c) Coordination With Other Deductions.--Any amount paid 
     by a taxpayer for any qualified long-term care insurance 
     contract to which subsection (a) applies shall not be taken 
     into account in computing the amount allowable to the 
     taxpayer as a deduction under section 162(l) or 213(a).''.
       (b) Long-Term Care Insurance Permitted To Be Offered Under 
     Cafeteria Plans and Flexible Spending Arrangements.--
       (1) Cafeteria plans.--Section 125(f) (defining qualified 
     benefits) is amended by inserting before the period at the 
     end ``; except that such term shall include the payment of 
     premiums for any qualified long-term care insurance contract 
     (as defined in section 7702B) to the extent the amount of 
     such payment does not exceed the eligible long-term care 
     premiums (as defined in section 213(d)(10)) for such 
     contract''.
       (2) Flexible spending arrangements.--Section 106 (relating 
     to contributions by an employer to accident and health plans) 
     is amended by striking subsection (c).
       (c) Conforming Amendments.--
       (1) Section 62(a), as amended by this Act, is amended by 
     inserting after paragraph (18) the following new item:
       ``(19) Premiums on qualified long-term care insurance 
     contracts.--The deduction allowed by section 223.''.
       (2) The table of sections for part VII of subchapter B of 
     chapter 1, as amended by this Act, is amended by striking the 
     last item and inserting the following new items:

``Sec. 223. Premiums on qualified long-term care insurance contracts.
``Sec. 224. Cross reference.''.
       (d) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to taxable years 
     beginning after December 31, 2000.
       (2) Cafeteria plans and flexible spending arrangements.--
     The amendments made by subsection (b) shall apply to taxable 
     years beginning after December 31, 2002.

     SEC. __. CREDIT FOR TAXPAYERS WITH LONG-TERM CARE NEEDS.

       (a) In General.--Subpart A of part IV of subchapter A of 
     chapter 1 (relating to nonrefundable personal credits), as 
     amended by this Act, is amended by inserting after section 
     25C the following new section:

     ``SEC. 25D. CREDIT FOR TAXPAYERS WITH LONG-TERM CARE NEEDS.

       ``(a) Allowance of Credit.--
       ``(1) In general.--There shall be allowed as a credit 
     against the tax imposed by this chapter for the taxable year 
     an amount equal to the applicable credit amount multiplied by 
     the number of applicable individuals with respect to whom the 
     taxpayer is an eligible caregiver for the taxable year.
       ``(2) Applicable credit amount.--For purposes of paragraph 
     (1), the applicable credit amount shall be determined in 
     accordance with the following table:

``For taxable years beginning in calenThe applicable credit amount is--
    2001......................................................$1,000   
    2002...................................................... 1,500   
    2003...................................................... 2,000   
    2004...................................................... 2,500   
    2005 or thereafter........................................ 3,000.  
       ``(b) Limitation Based on Adjusted Gross Income.--
       ``(1) In general.--The amount of the credit allowable under 
     subsection (a) shall be reduced (but not below zero) by $100 
     for each $1,000 (or fraction thereof) by which the taxpayer's 
     modified adjusted gross income exceeds the threshold amount. 
     For purposes of the preceding sentence, the term `modified 
     adjusted gross income' means adjusted gross income increased 
     by any amount excluded from gross income under section 911, 
     931, or 933.
       ``(2) Threshold amount.--For purposes of paragraph (1), the 
     term `threshold amount' means--
       ``(A) $150,000 in the case of a joint return, and
       ``(B) $75,000 in any other case.
       ``(3) Indexing.--In the case of any taxable year beginning 
     in a calendar year after 2001, each dollar amount contained 
     in paragraph (2) shall be increased by an amount equal to the 
     product of--
       ``(A) such dollar amount, and
       ``(B) the medical care cost adjustment determined under 
     section 213(d)(10)(B)(ii) for the calendar year in which the 
     taxable year begins, determined by substituting `August 2000' 
     for `August 1996' in subclause (II) thereof.

     If any increase determined under the preceding sentence is 
     not a multiple of $50, such increase shall be rounded to the 
     next lowest multiple of $50.

[[Page S5471]]

       ``(c) Definitions.--For purposes of this section--
       ``(1) Applicable individual.--
       ``(A) In general.--The term `applicable individual' means, 
     with respect to any taxable year, any individual who has been 
     certified, before the due date for filing the return of tax 
     for the taxable year (without extensions), by a physician (as 
     defined in section 1861(r)(1) of the Social Security Act) as 
     being an individual with long-term care needs described in 
     subparagraph (B) for a period--
       ``(i) which is at least 180 consecutive days, and
       ``(ii) a portion of which occurs within the taxable year.

     Such term shall not include any individual otherwise meeting 
     the requirements of the preceding sentence unless within the 
     39\1/2\ month period ending on such due date (or such other 
     period as the Secretary prescribes) a physician (as so 
     defined) has certified that such individual meets such 
     requirements.
       ``(B) Individuals with long-term care needs.--An individual 
     is described in this subparagraph if the individual meets any 
     of the following requirements:
       ``(i) The individual is at least 6 years of age and--

       ``(I) is unable to perform (without substantial assistance 
     from another individual) at least 3 activities of daily 
     living (as defined in section 7702B(c)(2)(B)) due to a loss 
     of functional capacity, or
       ``(II) requires substantial supervision to protect such 
     individual from threats to health and safety due to severe 
     cognitive impairment and is unable to perform, without 
     reminding or cuing assistance, at least 1 activity of daily 
     living (as so defined) or to the extent provided in 
     regulations prescribed by the Secretary (in consultation with 
     the Secretary of Health and Human Services), is unable to 
     engage in age appropriate activities.

       ``(ii) The individual is at least 2 but not 6 years of age 
     and is unable due to a loss of functional capacity to perform 
     (without substantial assistance from another individual) at 
     least 2 of the following activities: eating, transferring, or 
     mobility.
       ``(iii) The individual is under 2 years of age and requires 
     specific durable medical equipment by reason of a severe 
     health condition or requires a skilled practitioner trained 
     to address the individual's condition to be available if the 
     individual's parents or guardians are absent.
       ``(2) Eligible caregiver.--
       ``(A) In general.--A taxpayer shall be treated as an 
     eligible caregiver for any taxable year with respect to the 
     following individuals:
       ``(i) The taxpayer.
       ``(ii) The taxpayer's spouse.
       ``(iii) An individual with respect to whom the taxpayer is 
     allowed a deduction under section 151 for the taxable year.
       ``(iv) An individual who would be described in clause (iii) 
     for the taxable year if section 151(c)(1)(A) were applied by 
     substituting for the exemption amount an amount equal to the 
     sum of the exemption amount, the standard deduction under 
     section 63(c)(2)(C), and any additional standard deduction 
     under section 63(c)(3) which would be applicable to the 
     individual if clause (iii) applied.
       ``(v) An individual who would be described in clause (iii) 
     for the taxable year if--

       ``(I) the requirements of clause (iv) are met with respect 
     to the individual, and
       ``(II) the requirements of subparagraph (B) are met with 
     respect to the individual in lieu of the support test of 
     section 152(a).

       ``(B) Residency test.--The requirements of this 
     subparagraph are met if an individual has as his principal 
     place of abode the home of the taxpayer and--
       ``(i) in the case of an individual who is an ancestor or 
     descendant of the taxpayer or the taxpayer's spouse, is a 
     member of the taxpayer's household for over half the taxable 
     year, or
       ``(ii) in the case of any other individual, is a member of 
     the taxpayer's household for the entire taxable year.
       ``(C) Special rules where more than 1 eligible caregiver.--
       ``(i) In general.--If more than 1 individual is an eligible 
     caregiver with respect to the same applicable individual for 
     taxable years ending with or within the same calendar year, a 
     taxpayer shall be treated as the eligible caregiver if each 
     such individual (other than the taxpayer) files a written 
     declaration (in such form and manner as the Secretary may 
     prescribe) that such individual will not claim such 
     applicable individual for the credit under this section.
       ``(ii) No agreement.--If each individual required under 
     clause (i) to file a written declaration under clause (i) 
     does not do so, the individual with the highest modified 
     adjusted gross income (as defined in section 32(c)(5)) shall 
     be treated as the eligible caregiver.
       ``(iii) Married individuals filing separately.--In the case 
     of married individuals filing separately, the determination 
     under this subparagraph as to whether the husband or wife is 
     the eligible caregiver shall be made under the rules of 
     clause (ii) (whether or not one of them has filed a written 
     declaration under clause (i)).
       ``(d) Identification Requirement.--No credit shall be 
     allowed under this section to a taxpayer with respect to any 
     applicable individual unless the taxpayer includes the name 
     and taxpayer identification number of such individual, and 
     the identification number of the physician certifying such 
     individual, on the return of tax for the taxable year.
       ``(e) Taxable Year Must Be Full Taxable Year.--Except in 
     the case of a taxable year closed by reason of the death of 
     the taxpayer, no credit shall be allowable under this section 
     in the case of a taxable year covering a period of less than 
     12 months.''.
       (b) Conforming Amendments.--
       (1) Section 6213(g)(2) is amended by striking ``and'' at 
     the end of subparagraph (K), by striking the period at the 
     end of subparagraph (L) and inserting ``, and'', and by 
     inserting after subparagraph (L) the following new 
     subparagraph:
       ``(M) an omission of a correct TIN or physician 
     identification required under section 25D(d) (relating to 
     credit for taxpayers with long-term care needs) to be 
     included on a return.''.
       (2) The table of sections for subpart A of part IV of 
     subchapter A of chapter 1, as amended by this Act, is amended 
     by inserting after the item relating to section 25C the 
     following new item:

``Sec. 25D. Credit for taxpayers with long-term care needs.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.

     SEC. __. ADDITIONAL CONSUMER PROTECTIONS FOR LONG-TERM CARE 
                   INSURANCE.

       (a) Additional Protections Applicable to Long-Term Care 
     Insurance.--Subparagraphs (A) and (B) of section 7702B(g)(2) 
     (relating to requirements of model regulation and Act) are 
     amended to read as follows:
       ``(A) In general.--The requirements of this paragraph are 
     met with respect to any contract if such contract meets--
       ``(i) Model regulation.--The following requirements of the 
     model regulation:

       ``(I) Section 6A (relating to guaranteed renewal or 
     noncancellability), and the requirements of section 6B of the 
     model Act relating to such section 6A.
       ``(II) Section 6B (relating to prohibitions on limitations 
     and exclusions).
       ``(III) Section 6C (relating to extension of benefits).
       ``(IV) Section 6D (relating to continuation or conversion 
     of coverage).
       ``(V) Section 6E (relating to discontinuance and 
     replacement of policies).
       ``(VI) Section 7 (relating to unintentional lapse).
       ``(VII) Section 8 (relating to disclosure), other than 
     section 8F thereof.
       ``(VIII) Section 11 (relating to prohibitions against post-
     claims underwriting).
       ``(IX) Section 12 (relating to minimum standards).
       ``(X) Section 13 (relating to requirement to offer 
     inflation protection), except that any requirement for a 
     signature on a rejection of inflation protection shall permit 
     the signature to be on an application or on a separate form.
       ``(XI) Section 25 (relating to prohibition against 
     preexisting conditions and probationary periods in 
     replacement policies or certificates).
       ``(XII) The provisions of section 26 relating to contingent 
     nonforfeiture benefits, if the policyholder declines the 
     offer of a nonforfeiture provision described in paragraph 
     (4).

       ``(ii) Model act.--The following requirements of the model 
     Act:

       ``(I) Section 6C (relating to preexisting conditions).
       ``(II) Section 6D (relating to prior hospitalization).
       ``(III) The provisions of section 8 relating to contingent 
     nonforfeiture benefits, if the policyholder declines the 
     offer of a nonforfeiture provision described in paragraph 
     (4).

       ``(B) Definitions.--For purposes of this paragraph--
       ``(i) Model provisions.--The terms `model regulation' and 
     `model Act' mean the long-term care insurance model 
     regulation, and the long-term care insurance model Act, 
     respectively, promulgated by the National Association of 
     Insurance Commissioners (as adopted as of September 2000).
       ``(ii) Coordination.--Any provision of the model regulation 
     or model Act listed under clause (i) or (ii) of subparagraph 
     (A) shall be treated as including any other provision of such 
     regulation or Act necessary to implement the provision.
       ``(iii) Determination.--For purposes of this section and 
     section 4980C, the determination of whether any requirement 
     of a model regulation or the model Act has been met shall be 
     made by the Secretary.''.
       (b) Excise Tax.--Paragraph (1) of section 4980C(c) 
     (relating to requirements of model provisions) is amended to 
     read as follows:
       ``(1) Requirements of model provisions.--
       ``(A) Model regulation.--The following requirements of the 
     model regulation must be met:
       ``(i) Section 9 (relating to required disclosure of rating 
     practices to consumer).''
       ``(ii) Section 14 (relating to application forms and 
     replacement coverage).
       ``(iii) Section 15 (relating to reporting requirements), 
     except that the issuer shall also report at least annually 
     the number of claims denied during the reporting period for 
     each class of business (expressed as a percentage of claims 
     denied), other than claims denied for failure to meet the 
     waiting period or because of any applicable preexisting 
     condition.
       ``(iv) Section 22 (relating to filing requirements for 
     marketing).
       ``(v) Section 23 (relating to standards for marketing), 
     including inaccurate completion of medical histories, other 
     than paragraphs (1), (6), and (9) of section 23C, except 
     that--

[[Page S5472]]

       ``(I) in addition to such requirements, no person shall, in 
     selling or offering to sell a qualified long-term care 
     insurance contract, misrepresent a material fact; and
       ``(II) no such requirements shall include a requirement to 
     inquire or identify whether a prospective applicant or 
     enrollee for long-term care insurance has accident and 
     sickness insurance.

       ``(vi) Section 24 (relating to suitability).
       ``(vii) Section 29 (relating to standard format outline of 
     coverage).
       ``(viii) Section 30 (relating to requirement to deliver 
     shopper's guide).

     The requirements referred to in clause (vi) shall not include 
     those portions of the personal worksheet described in 
     Appendix B relating to consumer protection requirements not 
     imposed by section 4980C or 7702B.
       ``(B) Model act.--The following requirements of the model 
     Act must be met:
       ``(i) Section 6F (relating to right to return), except that 
     such section shall also apply to denials of applications and 
     any refund shall be made within 30 days of the return or 
     denial.
       ``(ii) Section 6G (relating to outline of coverage).
       ``(iii) Section 6H (relating to requirements for 
     certificates under group plans).
       ``(iv) Section 6I (relating to policy summary).
       ``(v) Section 6J (relating to monthly reports on 
     accelerated death benefits).
       ``(vi) Section 7 (relating to incontestability period).
       ``(C) Definitions.--For purposes of this paragraph, the 
     terms `model regulation' and `model Act' have the meanings 
     given such terms by section 7702B(g)(2)(B).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to policies issued more than 1 year after the 
     date of the enactment of this Act.
                                  ____

  SA 764. Mr. DURBIN submitted an amendment intended to be proposed by 
him to the bill H.R. 1836, to provide for reconciliation pursuant to 
section 104 of the concurrent resolution on the budget for fiscal year 
2002; which was ordered to lie on the table; as follows:

       On page 314, after line 21, insert the following:

     SEC. __. DEDUCTION FOR HEALTH INSURANCE COSTS OF SELF-
                   EMPLOYED INDIVIDUALS INCREASED.

       (a) In General.--Section 162(l)(1) (relating to special 
     rules for health insurance costs of self-employed 
     individuals) is amended to read as follows:
       ``(1) Allowance of deduction.--In the case of an individual 
     who is an employee within the meaning of section 401(c)(1), 
     there shall be allowed as a deduction under this section an 
     amount equal to the amount paid during the taxable year for 
     insurance which constitutes medical care for the taxpayer, 
     the taxpayer's spouse, and dependents.''
       (b) Clarification of Limitations on Other Coverage.--The 
     first sentence of section 162(l)(2)(B) is amended to read as 
     follows: ``Paragraph (1) shall not apply to any taxpayer for 
     any calendar month for which the taxpayer participates in any 
     subsidized health plan maintained by any employer (other than 
     an employer described in section 401(c)(4)) of the taxpayer 
     or the spouse of the taxpayer.''
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.
                                  ____

  SA 765.  Mr. REID (for himself, Mr. Dorgan, Mr. Graham, Ms. Stabenow, 
and Ms. Cantwell) submitted an amendment intended to be proposed by him 
to the bill H.R. 1836, to provide for reconciliation pursuant to 
section 104 of the concurrent resolution on the budget for fiscal year 
2002; as follows:

       On page 314, after line 21, add the following:

     SEC.  . NEW GUARANTEED MINIMUM PRIMARY INSURANCE AMOUNT WHERE 
                   ELIGIBILITY ARISES DURING TRANSITIONAL PERIOD.

       (a) In General.--Section 215(a) of the Social Security Act 
     (42 U.S.C. 415(a)) is amended--
       (1) in paragraph (4)(B)--
       (A) by inserting ``(with or without the application of 
     paragraph (8))'' after ``would be made''; and
       (B) in clause (i), by striking ``1984'' and inserting 
     ``1989''; and
       (2) by adding at the end the following:
       ``(8)(A) In the case of an individual described in 
     paragraph (4)(B) (subject to subparagraphs (F) and (G) of 
     this paragraph, the amount of the individual's primary 
     insurance amount as computed or recomputed under paragraph 
     (1) shall be deemed equal to the sum of--
       ``(i) such amount, and
       ``(ii) the applicable transitional increase amount (if 
     any).
       ``(B) For purposes of subparagraph (A)(ii), the term 
     `applicable transitional increase amount' means, in the case 
     of any individual, the product derived by multiplying--
       ``(i) the excess under former law, by
       ``(ii) the applicable percentage in relation to the year in 
     which the individual becomes eligible for old-age insurance 
     benefits, as determined by the following table:

``If the individual becomes eligible for sThe applicable percentage is:
  1979......................................................55 percent 
  1980......................................................45 percent 
  1981......................................................35 percent 
  1982......................................................32 percent 
  1983......................................................25 percent 
  1984......................................................20 percent 
  1985......................................................16 percent 
  1986......................................................10 percent 
  1987.......................................................3 percent 
  1988.......................................................5 percent.

       ``(C) For purposes of subparagraph (B), the term `excess 
     under former law' means, in the case of any individual, the 
     excess of--
       ``(i) the applicable former law primary insurance amount, 
     over
       ``(ii) the amount which would be such individual's primary 
     insurance amount if computed or recomputed under this section 
     without regard to this paragraph and paragraphs (4), (5), and 
     (6).
       ``(D) For purposes of subparagraph (C)(i), the term 
     `applicable former law primary insurance amount' means, in 
     the case of any individual, the amount which would be such 
     individual's primary insurance amount if it were--
       `'(i) computed or recomputed (pursuant to paragraph 
     (4)(B)(i)) under section 215(a) as in effect in December 
     1978, or
       ``(ii) computed or recomputed (pursuant to paragraph 
     (4)(B)(ii)) as provided by subsection (d), (as applicable) 
     and modified as provided by subparagraph (E).
       ``(E) In determining the amount which would be an 
     individual's primary insurance amount as provided in 
     subparagraph (D)--
       ``(i) subsection (b)(4) shall not apply;
       ``(ii) section 215(b) as in effect in December 1978 shall 
     apply, except that section 215(b)(2)(C) (as then in effect) 
     shall be deemed to provide that an individual's `computation 
     base years' may include only calendar years in the period 
     after 1950 (or 1936 if applicable) and ending with the 
     calendar year in which such individual attains age 61, plus 
     the 3 calendar years after such period for which the total of 
     such individual's wages and self-employment income is the 
     largest; and
       ``(iii) subdivision (I) in the last sentence of paragraph 
     (4) shall be applied as though the words `without regard to 
     any increases in that table' in such subdivision read 
     `including any increases in that table'.
       ``(F) This paragraph shall apply in the case of any 
     individual only if such application results in a primary 
     insurance amount for such individual that is greater than it 
     would be if computed or recomputed under paragraph (4)(B) 
     without regard to this paragraph.
       ``(G)(i) This paragraph shall apply in the case of any 
     individual subject to any timely election to receive lump sum 
     payments under this subparagraph.
       ``(ii) A written election to receive lump sum payments 
     under this subparagraph, in lieu of the application of this 
     paragraph to the computation of the primary insurance amount 
     of an individual described in paragraph (4)(B), may be filed 
     with the Commissioner of Social Security in such form and 
     manner as shall be prescribed in regulations of the 
     Commissioner. Any such election may be filed by such 
     individual or, in the event of such individual's death before 
     any such election is filed by such individual, by any other 
     beneficiary entitled to benefits under section 202 on the 
     basis of such individual's wages and self-employment income. 
     Any such election filed after December 31 2001, shall be null 
     and void and of no effect.
       ``(iii) Upon receipt by the Commissioner of a timely 
     election filed by the individual described in paragraph 
     (4)(B) in accordance with clause (ii)--
       ``(I) the Commissioner shall certify receipt of such 
     election to the Secretary of the Treasury, and the Secretary 
     of the Treasury, after receipt of such certification, shall 
     pay such individual, from amounts in the Federal Old-Age and 
     Survivors Insurance Trust Fund, a total amount equal to 
     $5,000, in 4 annual lump sum installments of $1,250, the 
     first of which shall be made during fiscal year 2002 not 
     later than July 1, 2002, and
       ``(II) subparagraph (A) shall not apply in determining such 
     individual's primary insurance amount.
       ``(iv) Upon receipt by the Commissioner as of December 31, 
     2001, of a timely election filed in accordance with clause 
     (ii) by at least one beneficiary entitled to benefits on the 
     basis of the wages and self-employment income of a deceased 
     individual described in paragraph (4)(B), if such deceased 
     individual has filed no timely election in accordance with 
     clause (ii)--
       ``(I) the Commissioner shall certify receipt of all such 
     elections received as of such date to the Secretary of the 
     Treasury, and the Secretary of the Treasury, after receipt of 
     such certification, shall pay each beneficiary filing such a 
     timely election, from amounts in the Federal Old-Age and 
     Survivors Insurance Trust Fund, a total amount equal to 
     $5,000 (or, in the case of 2 or more such beneficiaries, such 
     amount distributed evenly among such beneficiaries), in 4 
     equal annual lump sum installments, the first of which shall 
     be made during fiscal year 2002 not later than July 1, 
     2002, and
       ``(II) solely for purposes of determining the amount of 
     such beneficiary's benefits, subparagraph (A) shall be deemed 
     not to apply in determining the deceased individual's primary 
     insurance amount.''.
       (b) Effective Date and Related Rules.--
       (1) Applicability of amendments.--
       (A) In general.--Except as provided in paragraph (2), the 
     amendments made by this Act shall be effective as though they 
     had


[[Page S5473]]

been included or reflected in section 201 of the Social Security 
Amendments of 1977.
       (B) Applicability.--No monthly benefit or primary insurance 
     amount under title II of the Social Security Act shall be 
     increased by reason of such amendments for any month before 
     July 2002. The amendments made in this section shall apply 
     with respect to benefits payable in months in any fiscal year 
     after fiscal year 2005 only if the corresponding decrease in 
     adjusted discretionary spending limits for budget authority 
     and outlays under section 3 of this Act for fiscal years 
     prior to fiscal year 2006 is extended by Federal law to such 
     fiscal year after fiscal year 2005.
       (2) Recomputation to reflect benefit increases.--
     Notwithstanding section 215(f)(1) of the Social Security Act, 
     the Commissioner of Social Security shall recompute the 
     primary insurance amount so as to take into account the 
     amendments made by this Act in any case in which--
       (A) an individual is entitled to monthly insurance benefits 
     under title II of such Act for June 2002; and
       (B) such benefits are based on a primary insurance amount 
     computed--
       (i) under section 215 of such Act as in effect (by reason 
     of the Social Security Amendments of 1977) after December 
     1978, or
       (ii) under section 215 of such Act as in effect prior to 
     January 1979 by reason of subsection (a)(4)(B) of such 
     section (as amended by the Social Security Amendments of 
     1977).
       (c) Offset Provided by Projected Federal Budget 
     Surpluses.--Amounts offset by this section shall not be 
     counted as direct spending for purposes of the budgetary 
     limits provided in the congressional Budget Act of 1974 and 
     the Balanced Budget and emergency Deficit Control Act of 
     1985.
       (d) Revenue Offset.--The Secretary of the Treasury shall 
     adjust the highest rate of tax under section 1 of the 
     Internal Revenue Code of 1986 (as amended by section 101 of 
     this Act) to the extent necessary to offset in each fiscal 
     year beginning before October 1, 2011, the decrease in 
     revenues to the Treasury for that fiscal year resulting from 
     the amendment made by this section.

  SA 766. Mr. NELSON of Florida (for himself and Mrs. Boxer) submitted 
an amendment intended to be proposed by him to the bill H.R. 1836, to 
provide for reconciliation pursuant to section 104 the concurrent 
resolution of the budget for fiscal year 2002; which was ordered to lie 
on the table;
       On page 9, in the table between lines 11 and 12, strike 
     ``38.6%'' and insert ``38.7%'', strike ``37.6%'' and insert 
     ``37.7%'', and strike (in the line which begins ``2007 and 
     thereafter'') ``36%'' and insert ``36.1%''.
       On page 314, after line 21, add the following:

     SEC. __. TAX-EXEMPT BOND AUTHORITY FOR TREATMENT FACILITIES 
                   REDUCING ARSENIC LEVELS IN DRINKING WATER.

       (a) In General.--Section 142(e) (relating to facilities for 
     the furnishing of water) is amended--
       (1) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively,
       (2) by striking ``For purposes'' and inserting the 
     following:
       ``(1) In general.--For purposes'', and
       (3) by adding at the end the following:
       ``(2) Facilities reducing arsenic levels included.--Such 
     term includes improvements to facilities in order to comply 
     with the 10 parts per billion arsenic standard recommended by 
     the National Academy of Sciences.''.
       (b) Facilities Not Subject To State Cap.--Section 146(g) 
     (relating to exception for certain bonds) is amended--
       (1) by striking ``and'' at the end of paragraph (3),
       (2) by striking the period at the end of paragraph (4) and 
     inserting ``, and'', and
       (3) by inserting after paragraph (4), the following new 
     paragraph:
       ``(5) any exempt facility bond issued as part of an issue 
     described in section 142(a)(4) (relating to facilities for 
     the furnishing of water), but only to the extent the property 
     to be financed by the net proceeds of the issue is described 
     in section 142(e)(2).''.
       (c) Exempt from AMT.--Section 57(a)(5)(C) (relating to tax-
     exempt interest of specified private activity bonds) is 
     amended by adding at the end the following new clause:
       ``(v) Exception for certain water facility bonds.--For 
     purposes of clause (i), the term `private activity bond' 
     shall not include any exempt facility bond issued as part of 
     an issue described in section 142(a)(4) (relating to 
     facilities for the furnishing of water), but only to the 
     extent the property to be financed by the net proceeds of the 
     issue is described in section 142(e)(2).''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to bonds issued after the date of the enactment 
     of this Act.
                                  ____
                                  
  SA 767. Mrs. BOXER (for herself and Mr. Nelson of Florida) proposed 
an amendment to the bill H.R. 1836, to provide for reconciliation 
pursuant to section 104 of the concurrent resolution on the budget for 
fiscal year 2002; as follows:

       On page 314, after line 21, add the following:

     SEC. __. TAX-EXEMPT BOND AUTHORITY FOR TREATMENT FACILITIES 
                   REDUCING ARSENIC LEVELS IN DRINKING WATER.

       (a) In General.--Section 142(e) (relating to facilities for 
     the furnishing of water) is amended--
       (1) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively,
       (2) by striking ``For purposes'' and inserting the 
     following:
       ``(1) In general.--For purposes'', and
       (3) by adding at the end the following:
       ``(2) Facilities reducing arsenic levels included.--Such 
     term includes improvements to facilities in order to comply 
     with the 10 parts per billion arsenic standard recommended by 
     the National Academy of Sciences.''.
       (b) Facilities Not Subject To State Cap.--Section 146(g) 
     (relating to exception for certain bonds) is amended--
       (1) by striking ``and'' at the end of paragraph (3),
       (2) by striking the period at the end of paragraph (4) and 
     inserting ``, and'', and
       (3) by inserting after paragraph (4), the following new 
     paragraph:
       ``(5) any exempt facility bond issued as part of an issue 
     described in section 142(a)(4) (relating to facilities for 
     the furnishing of water), but only to the extent the property 
     to be financed by the net proceeds of the issue is described 
     in section 142(e)(2).''.
       (c) Exempt from AMT.--Section 57(a)(5)(C) (relating to tax-
     exempt interest of specified private activity bonds) is 
     amended by adding at the end the following new clause:
       ``(v) Exception for certain water facility bonds.--For 
     purposes of clause (i), the term `private activity bond' 
     shall not include any exempt facility bond issued as part of 
     an issue described in section 142(a)(4) (relating to 
     facilities for the furnishing of water), but only to the 
     extent the property to be financed by the net proceeds of the 
     issue is described in section 142(e)(2).''.
       (d) Revenue Offset.--The Secretary of the Treasury shall 
     adjust the highest rate of tax under section 1 of the 
     Internal Revenue Code of 1986 (as amended by section 101 of 
     this Act) to the extent necessary to offset in each fiscal 
     year beginning before October 1, 2011, the decrease in 
     revenues to the Treasury for that fiscal year resulting from 
     the amendments made by this section.
       (e) Effective Date.--The amendments made by this section 
     shall apply to bonds issued after the date of the enactment 
     of this Act.
                                  ____
                                  
  SA 768. Mr. DASCHLE proposed an amendment to the bill H.R. 1836, to 
provide for reconciliation pursuant to section 104 of the concurrent 
resolution on the budget for fiscal year 2002; as follows:

       On page 9, in the matter between lines 11 and 12, strike 
     ``37.6%'' in the item relating to 2005 and 2006 and insert 
     ``38.6%'' and strike ``36%'' in the item relating to 2007 and 
     thereafter and insert ``38.6%''.
       On page 13, between lines 15 and 16, insert:

     SEC. 104. INCREASE IN MAXIMUM TAXABLE INCOME FOR 15 PERCENT 
                   RATE BRACKET.

       (a) In General.--Section 1(f) (relating to adjustments in 
     tax tables so that inflation will not result in tax 
     increases), as amended by section 302, is amended--
       (1) in paragraph (2)--
       (A) by redesignating subparagraphs (B) and (C) as 
     subparagraphs (C) and (D),
       (B) by inserting after subparagraph (A) the following:
       ``(B) in the case of the tables contained in subsections 
     (a), (b), (c), and (d), by increasing the maximum taxable 
     income level for the 15 percent rate bracket and the minimum 
     taxable income level for the next highest rate bracket 
     otherwise determined under subparagraph (A) (after 
     application of paragraph (8)) for taxable years beginning in 
     any calendar year after 2004, by the applicable dollar amount 
     for such calendar year,'', and
       (C) by striking ``subparagraph (A)'' in subparagraph (C) 
     (as so redesignated) and inserting ``subparagraphs (A) and 
     (B)'', and
       (2) by adding at the end the following:
       ``(9) Applicable dollar amount.--For purposes of paragraph 
     (2)(B), the applicable dollar amount for any calendar year 
     shall be determined as follows:
       ``(A) Joint returns and surviving spouses.--In the case of 
     the table contained in subsection (a)--

                                                             Applicable
``Calendar year:                                         Dollar Amount:
  2005......................................................$1,000 ....

  2006......................................................$2,000 ....

  2007......................................................$3,000 ....

  2008......................................................$4,000 ....

  2009 and thereafter.......................................$5,000.....

       ``(B) Other tables.--In the case of the table contained in 
     subsection (b), (c), or (d)--

                                                             Applicable
``Calendar year:                                         Dollar Amount:
  2005........................................................$500 ....

  2006......................................................$1,000 ....

  2007......................................................$1,500 ....

  2005......................................................$2,000 ....

2009 and thereafter                                          $2,500.''.

  

       (b) Effective Date.--The amendments made by this section 
     shall take effect one day after the date of the enactment of 
     this Act.
                                  ____
                                  
  SA 769. Mr. NELSON of Nebraska submitted an amendment intended to be 
proposed by him to the bill H.R. 1836, to provide for reconciliation 
pursuant to section 104 of the concurrent resolution on the budget for 
fiscal year 2002; which was ordered to lie on the table; as follows:


[[Page S5474]]


       At the appropriate place, insert the following:

     SEC.   . CIRCUIT BREAKER.

       (a) In General.--In any fiscal year beginning with fiscal 
     year 2004, if the level of debt held by the public at the end 
     of that fiscal year (as projected by the Office of Management 
     and Budget sequestration update report on August 20th 
     preceeding the beginning of that fiscal year) would exceed 
     the level of debt held by the public for that fiscal year set 
     forth in the concurrent resolution on the budget for fiscal 
     year 2002 (H. Con. Res. 83, 107th Congress), any Member of 
     Congress may move to proceed to a bill that would make 
     changes in law to reduce discretionary spending and direct 
     spending (except for changes in Social Security, Medicare and 
     COLA's) and increase revenues in a manner that would reduce 
     the debt held by the public for the fiscal year to a level 
     not exceeding the level provided in that concurrent 
     resolution for that fiscal year. The motion to proceed shall 
     be voted on at the end of 4 hours of debate.
       (b) Consideration of Legislation.--A bill considered under 
     subsection (a) shall be considered as provided in section 
     310(e) of the Congressional Budget Act of 1974 (2 U.S.C. 
     641(e)).
       (c) Procedure.--It shall not be in order in the Senate to 
     consider any bill, joint resolution, motion, amendment, or 
     conference report, pursuant to this section, that contains 
     any provisions other than those enumerated in section 
     310(a)(1) and 310(a)(2) of the Congressional Budget Act of 
     1974. This point of order may be waived or suspended in the 
     Senate only by the affirmative vote of three-fifths of the 
     Members duly chosen and sworn. An affirmative vote of three-
     fifths of the Members duly chosen and sworn, shall be 
     required in the Senate to sustain an appeal of the ruling of 
     the Chair on a point of order raised under this paragraph.
                                  ____

  SA 770. Mr. LEVIN proposed an amendment to the bill H.R. 1836, to 
provide for reconciliation pursuant to section 104 of the concurrent 
resolution on the budget for fiscal year 2002; as follows:

       Beginning on page 68, strike line 12 and all that follows 
     through page 70, line 19, and insert the following:
       (a) In General.--Subsection (c) of section 2010 (relating 
     to applicable credit amount) is amended by striking the table 
     and inserting the following new table:

``In the case of estates of decedentThe applicable exclusion amount is:
      2002 through 2010..................................$4,000,000.''.

       (b) Lifetime Gift Exemption Increased to $1,000,000.--
       (1) For periods before estate tax repeal.--Paragraph (1) of 
     section 2505(a) (relating to unified credit against gift tax) 
     is amended by inserting ``(determined as if the applicable 
     exclusion amount were $1,000,000)'' after ``calendar year''.
       (2) For periods after estate tax repeal.--Paragraph (1) of 
     section 2505(a) (relating to unified credit against gift 
     tax), as amended by paragraph (1), is amended to read as 
     follows:
       ``(1) the amount of the tentative tax which would be 
     determined under the rate schedule set forth in section 
     2502(a)(2) if the amount with respect to which such tentative 
     tax is to be computed were $1,000,000, reduced by''.
       (c) GST Exemption.--
       (1) In general.--Subsection (a) of 2631 (relating to GST 
     exemption) is amended by striking ``of $1,000,000'' and 
     inserting ``amount''.
       (2) Exemption amount.--Subsection (c) of section 2631 is 
     amended to read as follows:
       ``(c) GST Exemption Amount.--For purposes of subsection 
     (a), the GST exemption amount for any calendar year shall be 
     equal to the applicable exclusion amount under section 
     2010(c) for such calendar year.''.
       (d) Repeal of Special Benefit for Family-Owned Business 
     Interests.--
       (1) In general.--Section 2057 is hereby repealed.
       (2) Conforming amendments.--
       (A) Paragraph (10) of section 2031(c) is amended by 
     inserting ``(as in effect on the day before the date of the 
     enactment of this parenthetical)'' before the period.
       (B) The table of sections for part IV of subchapter A of 
     chapter 11 is amended by striking the item relating to 
     section 2057.
       (e) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to estates of 
     decedents dying and gifts and generation-skipping transfers 
     made after December 31, 2001.
       (2) Subsection (b)(2).--The amendments made by subsection 
     (b)(2) shall apply to gifts made after December 31, 2010.
       (f) Revenue Offset.--The reductions in the highest marginal 
     tax rate in the table contained in section 1(i)(2) of the 
     Internal Revenue Code of 1986, as added by section 101(a) of 
     this Act, are eliminated to offset the decrease in revenues 
     to the Treasury for each fiscal year resulting from the 
     amendments made by this section as compared to the amendments 
     made by section 521 of the Restoring Earnings To Lift 
     Individuals and Empower Families (RELIEF) Act of 2001 as 
     reported by the Finance Committee of the Senate on May 16, 
     2001.
                                  ____

  SA 771. Mr. LEVIN proposed an amendment to the bill H.R. 1836, to 
provide for reconciliation pursuant to section 104 of the concurrent 
resolution on the budget for fiscal year 2002; as follows:

       On page 314, after line 21, add the following:

     SEC. __. ACCELERATION OF FULL IMPLEMENTATION OF TUTITION 
                   DEDUCTION AND REPEAL OF TERMINATION.

       (a) Deduction for Higher Education Expenses.--
       (1) Maximum amount of deduction.--Section 222(b)(2) 
     (relating to applicable dollar amount), as added by section 
     431(a) of this Act, is amended to read as follows:
       ``(2) Applicable dollar limit.--
       ``(A) In general.--The applicable dollar limit shall be 
     equal to--
       ``(i) in the case of a taxpayer whose adjusted gross income 
     for the taxable year does not exceed $65,000 ($130,000 in the 
     case of a joint return), $5,000,
       ``(ii) in the case of a taxpayer not described in clause 
     (i) whose adjusted gross income for the taxable year does not 
     exceed $80,000 ($160,000 in the case of a joint return), 
     $2,000, and
       ``(iii) in the case of any other taxpayer, zero.
       ``(B) Adjusted gross income.--For purposes of this 
     paragraph, adjusted gross income shall be determined--
       ``(i) without regard to this section and sections 911, 931, 
     and 933, and
       ``(ii) after application of sections 86, 135, 137, 219, 
     221, and 469.''.
       (2) Repeal of termination.--Section 222(e) (relating to 
     termination), as added by section 431(a) of this Act, is 
     repealed.
       (b) Effective Date.--The amendments made by this section 
     shall apply to payments made in taxable years beginning after 
     December 31, 2001.
       (c) Revenue Offset.--The reductions in 2005 and 2007 in the 
     highest marginal tax rate in the table contained in section 
     1(i)(2) of the Internal Revenue Code of 1986, as added by 
     section 101(a) of this Act, are eliminated to offset the 
     decrease in revenues to the Treasury for each fiscal year 
     resulting from the amendments made by this section.
                                  ____

  SA 772. Mr. DURBIN submitted an amendment intended to be proposed by 
him to the bill H.R. 1836, to provide for reconciliation pursuant to 
section 104 of the concurrent resolution on the budget for fiscal year 
2002; which was ordered to lie on the table; as follows:

       On page 314, after line 21, insert the following:

     SEC. 803. REPEAL OF 1993 INCOME TAX INCREASE ON SOCIAL 
                   SECURITY BENEFITS.

       (a) Restoration of Prior Law Formula.--Subsection (a) of 
     section 86 is amended to read as follows:
       ``(a) In General.--Gross income for the taxable year of any 
     taxpayer described in subsection (b) (notwithstanding section 
     207 of the Social Security Act) includes social security 
     benefits in an amount equal to the lesser of--
       ``(1) one-half of the social security benefits received 
     during the taxable year, or
       ``(2) one-half of the excess described in subsection 
     (b)(1).''
       (b) Repeal of Adjusted Base Amount.--Subsection (c) of 
     section 86 is amended to read as follows:
       ``(c) Base Amount.--For purposes of this section, the term 
     `base amount' means--
       ``(1) except as otherwise provided in this subsection, 
     $25,000,
       ``(2) $32,000 in the case of a joint return, and
       ``(3) zero in the case of a taxpayer who--
       ``(A) is married as of the close of the taxable year 
     (within the meaning of section 7703) but does not file a 
     joint return for such year, and
       ``(B) does not live apart from his spouse at all times 
     during the taxable year.''
       (c) Conforming Amendments.--
       (1) Subparagraph (A) of section 871(a)(3) is amended by 
     striking ``85 percent'' and inserting ``50 percent''.
       (2)(A) Subparagraph (A) of section 121(e)(1) of the Social 
     Security Amendments of 1983 (Public Law 98-21) is amended--
       (i) by striking ``(A) There'' and inserting ``There'';
       (ii) by striking ``(i)'' immediately following ``amounts 
     equivalent to''; and
       (iii) by striking ``, less (ii)'' and all that follows and 
     inserting a period.
       (B) Paragraph (1) of section 121(e) of such Act is amended 
     by striking subparagraph (B).
       (C) Paragraph (3) of section 121(e) of such Act is amended 
     by striking subparagraph (B) and by redesignating 
     subparagraph (C) as subparagraph (B).
       (D) Paragraph (2) of section 121(e) of such Act is amended 
     in the first sentence by striking ``paragraph (1)(A)'' and 
     inserting ``paragraph (1)''.
       (d) Maintenance of Transfers to Hospital Insurance Trust 
     Fund.--
       (1) Appropriation.--There are hereby appropriated to the 
     Hospital Insurance Trust Fund established under section 1817 
     of the Social Security Act amounts equal to the reduction in 
     revenues to the Treasury by reason of the enactment of this 
     section.
       (2) Transfer.--Amounts appropriated under paragraph (1) 
     shall be transferred from the general fund at such times and 
     in such manner as to replicate to the extent possible the 
     transfers which would have occurred to such Trust Fund had 
     this section not been enacted.

[[Page S5475]]

       (e) Revenue Offset.--The Secretary of the Treasury shall 
     adjust each of the corresponding percentages for the 39.6% 
     rate which are contained in the table contained in section 
     1(i)(2) of the Internal Revenue Code of 1986 (as added by 
     section 101 of this Act) to the extent necessary to offset in 
     each fiscal year beginning before October 1, 2011, the 
     decrease in revenues to the Treasury for that fiscal year 
     resulting from the amendments made by this section.
       (f) Effective Date.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to taxable years beginning after December 31, 2000.
       (2) Subsection (c)(1).--The amendment made by subsection 
     (c)(1) shall apply to benefits paid after December 31, 2000.
       (3) Subsection (c)(2).--The amendments made by subsection 
     (c)(2) shall apply to tax liabilities for taxable years 
     beginning after December 31, 2000.
                                  ____

  SA 773. Mr. SCHUMER submitted an amendment intended to be proposed by 
him to the bill H.R. 1836, to provide for reconciliation pursuant to 
section 104 of the concurrent resolution on the budget for fiscal year 
2002; which was ordered to lie on the table; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:

     SEC. __. COMMUTER BENEFITS EQUITY.

       (a) Uniform Dollar Limitation for All Types of 
     Transportation Fringe Benefits.--
       (1) In general.--Subparagraph (A) of section 132(f)(2) 
     (relating to limitation on exclusion) is amended by striking 
     ``$65'' and inserting ``$175''.
       (2) Conforming amendment.--Section 9010 of the 
     Transportation Equity Act for the 21st Century is amended by 
     striking subsection (c).
       (3) Effective date.--The amendments made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2001.
       (b) Clarification of Federal Employee Benefits.--Section 
     7905 of title 5, United States Code, is amended--
       (1) in subsection (a)--
       (A) in paragraph (2)(C) by inserting ``and'' after the 
     semicolon;
       (B) in paragraph (3) by striking ``; and'' and inserting a 
     period; and
       (C) by striking paragraph (4); and
       (2) in subsection (b)(2)(A), by amending subparagraph (A) 
     to read as follows:
       ``(A) a qualified transportation fringe as defined in 
     section 132(f)(1) of the Internal Revenue Code of 1986;''.
       (d) Revenue Offset.--The Secretary of the Treasury shall 
     adjust the reduction in the highest marginal tax rate in the 
     table contained in section 1(i)(2) of the Internal Revenue 
     Code of 1986, as added by section 101(a) of this Act, as 
     necessary to offset the decrease in revenues to the Treasury 
     for each fiscal year resulting from the amendments made by 
     this section.
                                  ____

  SA 774. Mr. SCHUMER submitted an amendment intended to be proposed by 
him to the bill H.R. 1836, to provide for reconciliation pursuant to 
section 104 of the concurrent resolution on the budget for fiscal year 
2002; which was ordered to lie on the table; as follows:

       On page 314, after line 21, add the following:

     SEC. __. 5-YEAR EXTENSION OF CERTAIN EXPIRING PROVISIONS.

       (a) Five-Year Extension of Certain Expiring Provisions.--
       (1) Adoption credits.--
       (A) Children without special needs.--Section 23(d)(2)(B) 
     (defining eligible child) is amended by striking ``2001'' and 
     inserting ``2006''.
       (B) Adoption assistance programs.--Section 137(f) (relating 
     to termination) is amended by striking ``2001'' and inserting 
     ``2006''.
       (2) Nonrefundable personal credits under amt.--So much of 
     section 26(a)(2) as precedes subparagraph (A) is amended to 
     read as follows:
       ``(2) Special rule for calendar years 2000 through 2006.--
     For purposes of any taxable year beginning during calendar 
     years 2000 through 2006, the aggregate amount of credits 
     allowed by this subpart for the taxable year shall not exceed 
     the sum of--''.
       (3) Work opportunity credit.--
       (A) Temporary extension.--Section 51(c)(4)(B) (relating to 
     termination) is amended by striking ``2001'' and inserting 
     ``2006''.
       (B) Effective date.--The amendment made by this paragraph 
     shall apply to individuals who begin work for the employer 
     after December 31, 2001.
       (4) Welfare-to-work credit.--
       (A) Temporary extension.--Section 51A(f) (relating to 
     termination) is amended by striking ``2001'' and inserting 
     ``2006''.
       (B) Effective date.--The amendments made by this paragraph 
     shall apply to individuals who begin work for the employer 
     after December 31, 2001.
       (5) Electricity from certain renewable resources.--
     Subparagraphs (A), (B), and (C) of section 45(c)(3) (defining 
     qualified facility) are each amended by striking ``2002'' and 
     inserting ``2007''.
       (6) Delay in effective date of requirement for approved 
     diesel or kerosene terminals.--Paragraph (2) of section 
     1032(f) of the Taxpayer Relief Act of 1997 is amended by 
     striking ``January 1, 2002'' and inserting ``January 1, 
     2007''.
       (7) Qualified zone academy bond program.--Section 
     1397E(e)(1) (relating to national limitation) is amended by 
     striking ``1998, 1999, 2000, and 2001'' and inserting ``each 
     of years 1998 through 2006''.
       (8) Employer provided educational assistance.--Section 
     127(d) (relating to termination) is amended by striking 
     ``2001'' and inserting ``2006''.
       (9) Income limit for percentage depletion.--Subparagraph 
     (H) of section 613A(c)(6) is amended by striking ``January 1, 
     2002'' and inserting ``January 1, 2007''.
       (10) Subpart f exemption.--
       (A) Temporary extension.--Section 953(e)(10) is amended--
       (i) by striking ``January 1, 2002'' and inserting ``January 
     1, 2007'', and
       (ii) by striking ``December 31, 2001'' and inserting 
     ``December 31, 2006''.
       (B) Conforming amendment.--Section 954(h)(9) is amended by 
     striking ``January 1, 2002'' and inserting ``January 1, 
     2007''.
       (11) Parity in the application of certain limits to mental 
     health benefits.--
       (A) Temporary extension.--Subsection (f) of section 9812 is 
     amended by striking ``on or after September 30, 2001'' and 
     inserting ``after September 30, 2006''.
       (B) Effective date.--The amendments made by this paragraph 
     shall apply to benefits for services furnished after 
     September 30, 2001.
       (12) Phaseout of deduction for clean-fuel vehicles and 
     certain refueling property.--
       (A) Temporary extension of phaseout.--Subsection (b)(1)(B) 
     of section 179A is amended--
       (i) in the matter preceding clause (i), by striking 
     ``December 31, 2001' and inserting ``December 31, 2006'',
       (ii) in clause (i), by striking ``2002'' and inserting 
     ``2007'',
       (iii) in clause (ii), by striking ``2003'' and inserting 
     ``2008'', and
       (iv) in clause (iii), by striking ``2004'' and inserting 
     ``2009''.
       (B) Extension of termination date.--Section 179A(f) is 
     amended by striking ``December 31, 2004'' and inserting 
     ``December 31, 2009''.
       (C) Effective date.--The amendments made by this paragraph 
     shall apply to property placed in service after December 31, 
     2001.
       (13) Phaseout of credit for electric vehicles.--
       (A) Temporary extension of phase out.--Section 30(b)(2) is 
     amended--
       (i) in the matter preceding subparagraph (A), by striking 
     ``December 31, 2001'' and inserting ``December 31, 2006'',
       (ii) in subparagraph (A), by striking ``2002'' and 
     inserting ``2007'',
       (iii) in subparagraph (B), by striking ``2003'' and 
     inserting ``2008'', and
       (iv) in subparagraph (C), by striking ``2004'' and 
     inserting ``2009''.
       (B) Extension of termination date.--Section 30(e) is 
     amended by striking ``December 31, 2004'' and inserting 
     ``December 31, 2009''.
       (C) Effective date.--The amendments made by this paragraph 
     shall apply to property placed in service after December 31, 
     2001.
       (14) Generalized system of preferences.--Section 505 of the 
     Trade Act of 1974 (19 U.S.C. 2465) is amended by striking 
     ``September 30, 2001'' and inserting ``December 31, 2006''.
       (15) Andean trade preference.--Section 208(b) of the Andean 
     Trade Preference Act (19 U.S.C. 3206(b)) is amended to read 
     as follows:
       ``(b) Termination of Duty-Free Treatment.--No duty-free 
     treatment extended to beneficiary countries under this title 
     shall remain in effect after December 31, 2006.''.
       (16) Temporary increase in amount of rum excise tax covered 
     over to puerto rico and virgin islands.--Section 7652(f )(1) 
     (relating to limitation on cover over of tax on distilled 
     spirits) is amended to read as follows:
       ``(1) $10.50 ($13.25 in the case of distilled spirits 
     brought into the United States after June 30, 1999, and 
     before January 1, 2007), or''.
       (b) Effective Date.--Except as otherwise provided in this 
     section, the amendments made by subsection (a) shall apply to 
     taxable years beginning after December 31, 2001.
       (c) Revenue Offset.--The Secretary of the Treasury shall 
     adjust the reduction in the highest marginal tax rate in the 
     table contained in section 1(i)(2) of the Internal Revenue 
     Code of 1986, as added by section 101(a) of this Act, as 
     necessary to offset the decrease in revenues to the Treasury 
     for each fiscal year resulting from the amendments made by 
     this section.
                                  ____

  SA 775. Mr. SCHUMER submitted an amendment intended to be proposed by 
him to the bill H.R. 1836, to provide for reconciliation pursuant to 
section 104 of the concurrent resolution on the budget for fiscal year 
2002; which was ordered to lie on the table; as follows:

       On page 9, in the table between lines 11 and 12, strike 
     ``36%'' and insert ``37%''.
       On page 54, between lines 4 and 5, insert the following:
       ``(C) 2006 through 2011.--
       ``(i) In general.--In the case of a taxable year beginning 
     in 2006, 2007, 2008, 2009, 2010,

[[Page S5476]]

     or 2011, the applicable dollar amount shall be equal to the 
     applicable dollar amount determined in the table contained in 
     clause (ii), reduced (but not below zero) by the amount 
     determined under clause (iii).
       ``(ii) Applicable dollar amount.--

                                                             Applicable
``Taxable year beginning in:                             dollar amount:
  2006 or 2007.............................................$10,000 ....

  2008, 2009, 2010, or 2011................................$12,000.....

       ``(iii) Amount of reduction.--The amount determined under 
     this clause for any taxable year is the amount which bears 
     the same ratio to the applicable dollar amount determined in 
     the table contained in clause (ii) for such taxable year as--

       ``(I) the excess of--

       ``(aa) the taxpayer's adjusted gross income for such 
     taxable year, over
       ``(bb) $65,000 ($90,000 in the case of return filed by a 
     head of household (as defined in section 2(b)), and $130,000 
     in the case of a joint return), bears to

       ``(II) $10,000 ($20,000 in the case of a joint return).

       On page 59, line 3, strike ``$500'' and insert ``$1,000''.
                                  ____

  SA 776. Mr. SCHUMER submitted an amendment intended to be proposed by 
him to the bill H.R. 1836, to provide for reconciliation pursuant to 
section 104 of the concurrent resolution on the budget for fiscal year 
2002; which was ordered to lie on the table; as follows:

       On page 54, between lines 4 and 5, insert the following:
       ``(C) 2006 through 2011.--
       ``(i) In general.--In the case of a taxable year beginning 
     in 2006, 2007, 2008, 2009, 2010, or 2011, the applicable 
     dollar amount shall be equal to the applicable dollar amount 
     determined in the table contained in clause (ii), reduced 
     (but not below zero) by the amount determined under clause 
     (iii).
       ``(ii) Applicable dollar amount.--

                                                             Applicable
``Taxable year beginning in:                             dollar amount:
  2006......................................................$10,000....

  2007.......................................................10,000....

  2008.......................................................12,000....

  2009.......................................................12,000....

  2010.......................................................12,000....

  2011......................................................12,000.....

       ``(iii) Amount of reduction.--The amount determined under 
     this clause for any taxable year is the amount which bears 
     the same ratio to the applicable dollar amount determined in 
     the table contained in clause (ii) for such taxable year as--

       ``(I) the excess of--

       ``(aa) the taxpayer's adjusted gross income for such 
     taxable year, over
       ``(bb) $65,000 ($90,000 in the case of return filed by a 
     head of household (as defined in section 2(b)), and $130,000 
     in the case of a joint return), bears to

       ``(II) $10,000 ($20,000 in the case of a joint return).

       On page 59, line 3, strike ``$500'' and insert ``$1,000''.
                                  ____

  SA 777. Mr. SCHUMER submitted an amendment intended to be proposed by 
him to the bill H.R. 1836, to provide for reconciliation pursuant to 
section 104 of the concurrent resolution on the budget for fiscal year 
2002; which was ordered to lie on the table; as follows:

       On page 314, after line 21, add the following:

     SEC. __. INDIVIDUAL ALTERNATIVE MINIMUM TAX INDEXING; 
                   EXTENSION OF CERTAIN EXPIRING PROVISIONS.

       (a) Alternative Minimum Tax Relief.--Section 701(a) of this 
     Act is amended to read as follows:
       (a) In General.--Section 55(d) (relating to exemption 
     amount) is amended by adding at the end the following new 
     paragraph:
       ``(4) Inflation adjustment.--
       ``(A) In general.--In the case of any taxable year 
     beginning after 2000, the dollar amounts referred to in 
     paragraph (1) shall each be increased by an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section (1)(f)(3) for the calendar year in which the taxable 
     year begins, by substituting `1999' for `1992'.
       ``(B) Rounding.--If any amount as adjusted under 
     subparagraph (A) is not a multiple of $50, such amount shall 
     be rounded to the nearest multiple of $50.''.
       (b) One-year Extension of Certain Expiring Provisions.--
       (1) Adoption credits.--
       (A) Children without special needs.--Section 23(d)(2)(B) 
     (defining eligible child) is amended by striking ``2001'' and 
     inserting ``2002''.
       (B) Adoption assistance programs.--Section 137(f) (relating 
     to termination) is amended by striking ``2001'' and inserting 
     ``2002''.
       (2) Nonrefundable personal credits under AMT.--So much of 
     section 26(a)(2) as precedes subparagraph (A) is amended to 
     read as follows:
       ``(2) Special rule for 2000, 2001, and 2002.--For purposes 
     of any taxable year beginning during 2000, 2001, or 2002, the 
     aggregate amount of credits allowed by this subpart for the 
     taxable year shall not exceed the sum of--''.
       (3) Work opportunity credit.--
       (A) Temporary extension.--Section 51(c)(4)(B) (relating to 
     termination) is amended by striking ``2001'' and inserting 
     ``2002''.
       (B) Effective date.--The amendment made by this paragraph 
     shall apply to individuals who begin work for the employer 
     after December 31, 2001.
       (4) Welfare-to-work credit.--
       (A) Temporary extension.--Section 51A(f) (relating to 
     termination) is amended by striking ``2001'' and inserting 
     ``2002''.
       (B) Effective date.--The amendments made by this paragraph 
     shall apply to individuals who begin work for the employer 
     after December 31, 2001.
       (5) Electricity from certain renewable resources.--
     Subparagraphs (A), (B), and (C) of section 45(c)(3) (defining 
     qualified facility) are each amended by striking ``2002'' and 
     inserting ``2003''.
       (6) Delay in effective date of requirement for approved 
     diesel or kerosene terminals.--Paragraph (2) of section 
     1032(f) of the Taxpayer Relief Act of 1997 is amended by 
     striking ``January 1, 2002'' and inserting ``January 1, 
     2003''.
       (7) Qualified zone academy bond program.--Section 
     1397E(e)(1) (relating to national limitation) is amended by 
     striking ``and 2001'' and inserting ``2001, and 2002''.
       (8) Employer provided educational assistance.--Section 
     127(d) (relating to termination) is amended by striking 
     ``2001'' and inserting ``2002''.
       (9) Income limit for percentage depletion.--Subparagraph 
     (H) of section 613A(c)(6) is amended by striking ``January 1, 
     2002'' and inserting ``January 1, 2003''.
       (10) Subpart f exemption.--
       (A) Temporary extension.--Section 953(e)(10) is amended--
       (i) by striking ``January 1, 2002'' and inserting ``January 
     1, 2003'', and
       (ii) by striking ``December 31, 2001'' and inserting 
     ``December 31, 2002''.
       (B) Conforming amendment.--Section 954(h)(9) is amended by 
     striking ``January 1, 2002'' and inserting ``January 1, 
     2003''.
       (11) Parity in the application of certain limits to mental 
     health benefits.--
       (A) Temporary extension.--Subsection (f) of section 9812 is 
     amended by striking ``on or after September 30, 2001'' and 
     inserting ``after September 30, 2002''.
       (B) Effective date.--The amendments made by this paragraph 
     shall apply to benefits for services furnished after 
     September 30, 2001.
       (12) Phaseout of deduction for clean-fuel vehicles and 
     certain refueling property.--
       (A) Temporary extension of phaseout.--Subsection (b)(1)(B) 
     of section 179A is amended--
       (i) in the matter preceding clause (i), by striking 
     ``December 31, 2001' and inserting ``December 31, 2002'',
       (ii) in clause (i), by striking ``2002'' and inserting 
     ``2003'',
       (iii) in clause (ii), by striking ``2003'' and inserting 
     ``2004'', and
       (iv) in clause (iii), by striking ``2004'' and inserting 
     ``2005''.
       (B) Extension of termination date.--Section 179A(f) is 
     amended by striking ``December 31, 2004'' and inserting 
     ``December 31, 2005''.
       (C) Effective date.--The amendments made by this paragraph 
     shall apply to property placed in service after December 31, 
     2001.
       (13) Phaseout of credit for electric vehicles.--
       (A) Temporary extension of phase out.--Section 30(b)(2) is 
     amended--
       (i) in the matter preceding subparagraph (A), by striking 
     ``December 31, 2001'' and inserting ``December 31, 2002'',
       (ii) in subparagraph (A), by striking ``2002'' and 
     inserting ``2003'',
       (iii) in subparagraph (B), by striking ``2003'' and 
     inserting ``2004'', and
       (iv) in subparagraph (C), by striking ``2004'' and 
     inserting ``2005''.
       (B) Extension of termination date.--Section 30(e) is 
     amended by striking ``December 31, 2004'' and inserting 
     ``December 31, 2005''.
       (C) Effective date.--The amendment made by this paragraph 
     shall apply to property placed in service after December 31, 
     2001.
       (14) Generalized System of Preferences.--Section 505 of the 
     Trade Act of 1974 (19 U.S.C. 2465) is amended by striking 
     ``September 30, 2001'' and inserting ``December 31, 2002''.
       (15) Andean Trade Preference.--Section 208(b) of the Andean 
     Trade Preference Act (19 U.S.C. 3206(b)) is amended to read 
     as follows:
       ``(b) Termination of Duty-Free Treatment.--No duty-free 
     treatment extended to beneficiary countries under this title 
     shall remain in effect after December 31, 2002.''.
       (16) Temporary increase in amount of rum excise tax covered 
     over to puerto rico and virgin islands.--Section 7652(f )(1) 
     (relating to limitation on cover over of tax on distilled 
     spirits) is amended to read as follows:
       ``(1) $10.50 ($13.25 in the case of distilled spirits 
     brought into the United States after June 30, 1999, and 
     before January 1, 2003), or''.
       (c) Effective Date.--Except as otherwise provided in this 
     section, the amendments made by this section shall apply to 
     taxable years beginning after December 31, 2001.
       (d) Revenue Offset.--The Secretary of the Treasury shall 
     adjust the reduction in the

[[Page S5477]]

     highest marginal tax rate in the table contained in section 
     1(i)(2) of the Internal Revenue Code of 1986, as added by 
     section 101(a) of this Act, as necessary to offset the 
     decrease in revenues to the Treasury for each fiscal year 
     resulting from the amendments made by this section.
                                  ____

  SA 778. Mr. SCHUMER submitted an amendment intended to be proposed by 
him to the bill H.R. 1836, to provide for reconciliation pursuant to 
section 104 of the concurrent resolution on the budget for fiscal year 
2002; which was ordered to lie on the table; as follows:

       On page 314, after line 21, add the following:

     SEC.  EXTENSION OF CERTAIN EXPIRING PROVISIONS.

       (a) One-year Extension of Certain Expiring Provisions.--
       (1) Adoption credits.--
       (A) Children without special needs.--Section 23(d)(2)(B) 
     (defining eligible child) is amended by striking ``2001'' and 
     inserting ``2002''.
       (B) Adoption assistance programs.--Section 137(f) (relating 
     to termination) is amended by striking ``2001'' and inserting 
     ``2002''.
       (2) Nonrefundable personal credits under AMT.--So much of 
     section 26(a)(2) as precedes subparagraph (A) is amended to 
     read as follows:
       ``(2) Special rule for 2000, 2001, and 2002.--For purposes 
     of any taxable year beginning during 2000, 2001, or 2002, the 
     aggregate amount of credits allowed by this subpart for the 
     taxable year shall not exceed the sum of--''.
       (3) Work opportunity credit.--
       (A) Temporary extension.--Section 51(c)(4)(B) (relating to 
     termination) is amended by striking ``2001'' and inserting 
     ``2002''.
       (B) Effective date.--The amendment made by this paragraph 
     shall apply to individuals who begin work for the employer 
     after December 31, 2001.
       (4) Welfare-to-work credit.--
       (A) Temporary extension.--Section 51A(f) (relating to 
     termination) is amended by striking ``2001'' and inserting 
     ``2002''.
       (B) Effective date.--The amendments made by this paragraph 
     shall apply to individuals who begin work for the employer 
     after December 31, 2001.
       (5) Electricity from certain renewable resources.--
     Subparagraphs (A), (B), and (C) of section 45(c)(3) (defining 
     qualified facility) are each amended by striking ``2002'' and 
     inserting ``2003''.
       (6) Delay in effective date of requirement for approved 
     diesel or kerosene terminals.--Paragraph (2) of section 
     1032(f) of the Taxpayer Relief Act of 1997 is amended by 
     striking ``January 1, 2002'' and inserting ``January 1, 
     2003''.
       (7) Qualified zone academy bond program.--Section 
     1397E(e)(1) (relating to national limitation) is amended by 
     striking ``and 2001'' and inserting ``2001, and 2002''.
       (8) Employer provided educational assistance.--Section 
     127(d) (relating to termination) is amended by striking 
     ``2001'' and inserting ``2002''.
       (9) Income limit for percentage depletion.--Subparagraph 
     (H) of section 613A(c)(6) is amended by striking ``January 1, 
     2002'' and inserting ``January 1, 2003''.
       (10) Subpart f exemption.--
       (A) Temporary extension.--Section 953(e)(10) is amended--
       (i) by striking ``January 1, 2002'' and inserting ``January 
     1, 2003'', and
       (ii) by striking ``December 31, 2001'' and inserting 
     ``December 31, 2002''.
       (B) Conforming amendment.--Section 954(h)(9) is amended by 
     striking ``January 1, 2002'' and inserting ``January 1, 
     2003''.
       (11) Parity in the application of certain limits to mental 
     health benefits.--
       (A) Temporary extension.--Subsection (f) of section 9812 is 
     amended by striking ``on or after September 30, 2001'' and 
     inserting ``after September 30, 2002''.
       (B) Effective date.--The amendments made by this paragraph 
     shall apply to benefits for services furnished after 
     September 30, 2001.
       (12) Phaseout of deduction for clean-fuel vehicles and 
     certain refueling property.--
       (A) Temporary extension of phaseout.--Subsection (b)(1)(B) 
     of section 179A is amended--
       (i) in the matter preceding clause (i), by striking 
     ``December 31, 2001' and inserting ``December 31, 2002'',
       (ii) in clause (i), by striking ``2002'' and inserting 
     ``2003'',
       (iii) in clause (ii), by striking ``2003'' and inserting 
     ``2004'', and
       (iv) in clause (iii), by striking ``2004'' and inserting 
     ``2005''.
       (B) Extension of termination date.--Section 179A(f) is 
     amended by striking ``December 31, 2004'' and inserting 
     ``December 31, 2005''.
       (C) Effective date.--The amendments made by this paragraph 
     shall apply to property placed in service after December 31, 
     2001.
       (13) Phaseout of credit for electric vehicles.--
       (A) Temporary extension of phase out.--Section 30(b)(2) is 
     amended--
       (i) in the matter preceding subparagraph (A), by striking 
     ``December 31, 2001'' and inserting ``December 31, 2002'',
       (ii) in subparagraph (A), by striking ``2002'' and 
     inserting ``2003'',
       (iii) in subparagraph (B), by striking ``2003'' and 
     inserting ``2004'', and
       (iv) in subparagraph (C), by striking ``2004'' and 
     inserting ``2005''.
       (B) Extension of termination date.--Section 30(e) is 
     amended by striking ``December 31, 2004'' and inserting 
     ``December 31, 2005''.
       (C) Effective date.--The amendment made by this paragraph 
     shall apply to property placed in service after December 31, 
     2001.
       (14) Generalized System of Preferences.--Section 505 of the 
     Trade Act of 1974 (19 U.S.C. 2465) is amended by striking 
     ``September 30, 2001'' and inserting ``December 31, 2002''.
       (15) Andean Trade Preference.--Section 208(b) of the Andean 
     Trade Preference Act (19 U.S.C. 3206(b)) is amended to read 
     as follows:
       ``(b) Termination of Duty-Free Treatment.--No duty-free 
     treatment extended to beneficiary countries under this title 
     shall remain in effect after December 31, 2002.''.
       (16) Temporary increase in amount of rum excise tax covered 
     over to puerto rico and virgin islands.--Section 7652(f )(1) 
     (relating to limitation on cover over of tax on distilled 
     spirits) is amended to read as follows:
       ``(1) $10.50 ($13.25 in the case of distilled spirits 
     brought into the United States after June 30, 1999, and 
     before January 1, 2003), or''.
       (c) Effective Date.--Except as otherwise provided in this 
     section, the amendments made by this section shall apply to 
     taxable years beginning after December 31, 2001.
       (d) Revenue Offset.--The Secretary of the Treasury shall 
     adjust the reduction in the highest marginal tax rate in the 
     table contained in section 1(i)(2) of the Internal Revenue 
     Code of 1986, as added by section 101(a) of this Act, as 
     necessary to offset the decrease in revenues to the Treasury 
     for each fiscal year resulting from the amendments made by 
     this section.
                                  ____

  SA 779. Mrs. MURRAY submitted an amendment intended to be proposed by 
her to the bill H.R. 1836, to provide for reconciliation pursuant to 
section 104 of the concurrent resolution on the budget for fiscal year 
2002; which was ordered to lie on the table; as follows:

       On page 9, between lines 14 and 15, insert the following:
       ``(4) Delay of top rate reduction.--
       ``(A) In general.--Notwithstanding paragraph (2), with 
     respect to a calendar year, no percentage described in that 
     paragraph shall be substituted for 39.6 percent until the 
     requirement of subparagraph (B) is met.
       ``(B) Fully funding basic education services.--The 
     requirement of this paragraph is that legislation is enacted 
     that appropriates funds for Title I of the Elementary and 
     Secondary Education Act, as amended, at or above the levels 
     that were authorized by the Senate when it passed Senate 
     Amendment 365 (107th Congress; as offered by Senators Dodd 
     and Collins), on a vote of 79 to 21 to provide Title I 
     supports to 100 percent of economically disadvantaged 
     children by 2011, rather than the 33% who are aided today 
     under such title.''.
                                  ____

  SA 780. Mr. DURBIN submitted an amendment intended to be proposed by 
him to the bill H.R. 1836, to provide for reconciliation pursuant to 
section 104 of the concurrent resolution on the budget for fiscal year 
2002; which was ordered to lie on the table; as follows:

       On page 314, after line 21, insert the following:

     SEC. 803. REPEAL OF 1993 INCOME TAX INCREASE ON SOCIAL 
                   SECURITY BENEFITS.

       (a) Restoration of Prior Law Formula.--Subsection (a) of 
     section 86 is amended to read as follows:
       ``(a) In General.--Gross income for the taxable year of any 
     taxpayer described in subsection (b) (notwithstanding section 
     207 of the Social Security Act) includes social security 
     benefits in an amount equal to the lesser of--
       ``(1) one-half of the social security benefits received 
     during the taxable year, or
       ``(2) one-half of the excess described in subsection 
     (b)(1).''
       (b) Repeal of Adjusted Base Amount.--Subsection (c) of 
     section 86 is amended to read as follows:
       ``(c) Base Amount.--For purposes of this section, the term 
     `base amount' means--
       ``(1) except as otherwise provided in this subsection, 
     $25,000,
       ``(2) $32,000 in the case of a joint return, and
       ``(3) zero in the case of a taxpayer who--
       ``(A) is married as of the close of the taxable year 
     (within the meaning of section 7703) but does not file a 
     joint return for such year, and
       ``(B) does not live apart from his spouse at all times 
     during the taxable year.''
       (c) Conforming Amendments.--
       (1) Subparagraph (A) of section 871(a)(3) is amended by 
     striking ``85 percent'' and inserting ``50 percent''.
       (2)(A) Subparagraph (A) of section 121(e)(1) of the Social 
     Security Amendments of 1983 (Public Law 98-21) is amended--
       (i) by striking ``(A) There'' and inserting ``There'';
       (ii) by striking ``(i)'' immediately following ``amounts 
     equivalent to''; and
       (iii) by striking ``, less (ii)'' and all that follows and 
     inserting a period.

[[Page S5478]]

       (B) Paragraph (1) of section 121(e) of such Act is amended 
     by striking subparagraph (B).
       (C) Paragraph (3) of section 121(e) of such Act is amended 
     by striking subparagraph (B) and by redesignating 
     subparagraph (C) as subparagraph (B).
       (D) Paragraph (2) of section 121(e) of such Act is amended 
     in the first sentence by striking ``paragraph (1)(A)'' and 
     inserting ``paragraph (1)''.
       (d) Maintenance of Transfers to Hospital Insurance Trust 
     Fund.--
       (1) Appropriation.--There are hereby appropriated to the 
     Hospital Insurance Trust Fund established under section 1817 
     of the Social Security Act amounts equal to the reduction in 
     revenues to the Treasury by reason of the enactment of this 
     section.
       (2) Transfer.--Amounts appropriated under paragraph (1) 
     shall be transferred from the general fund at such times and 
     in such manner as to replicate to the extent possible the 
     transfers which would have occurred to such Trust Fund had 
     this section not been enacted.
       (e) Revenue Offset.--Notwithstanding any other provision of 
     this legislation, each of the corresponding percentages for 
     the 39.6% rate which are contained in the table contained in 
     section 1(i)(2) of the Internal Revenue Code of 1986 as added 
     by section 101 of this Act shall remain at 39.6% for taxable 
     years beginning before calendar year 2009. In calendar year 
     2009 and thereafter, they shall be 38.6%.
       (f) Effective Date.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to taxable years beginning after December 31, 2000.
       (2) Subsection (c)(1).--The amendment made by subsection 
     (c)(1) shall apply to benefits paid after December 31, 2000.
       (3) Subsection (c)(2).--The amendments made by subsection 
     (c)(2) shall apply to tax liabilities for taxable years 
     beginning after December 31, 2000.
                                  ____

  SA 781. Mr. CONRAD submitted an amendment intended to be proposed by 
him to the bill H.R. 1836, to provide for reconciliation pursuant to 
section 104 of the concurrent resolution on the budget for fiscal year 
2002, as follows:

       Strike the following sections of the bill: sections 501, 
     541, and 542.
                                  ____

  SA 782. Mr. JEFFORDS submitted an amendment intended to be proposed 
by him to the bill H.R. 1836, to provide for reconciliation pursuant to 
section 104 of the concurrent resolution on the budget for fiscal year 
2002; which was ordered to lie on the table; as follows:

       On page 280, line 25, strike ``one-participant'' and insert 
     ``eligible''.
       On page 281, line 5, strike ``One-particpant'' and insert 
     ``Eligible''.
       On page 281, line 7, strike ``one-participant'' and insert 
     ``eligible''.
       On page 281, strike lines 10 through 13 and insert the 
     following:
       (i) covered only an individual or an individual and the 
     individual's spouse and such individual (or individual and 
     spouse) wholly owned the trade or business (whether or not 
     incorporated); or
       On page 281, on lines 14 and 15, strike ``one or more 
     partners (and their spouses)'' and insert ``the partners or 
     the partners and their spouses''.
       On page 281, line 24, strike ``the employer (and the 
     employer's spouse)'' and insert ``the individuals described 
     in subparagraph (A)(i)''.
       Beginning on page 288, strike line 1 and all that follows 
     through page 299, line 24, and insert the following:

                   Subtitle G--Other ERISA Provisions

     SEC. 681. MISSING PARTICIPANTS.

       (a) In General.--Section 4050 of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1350) is amended by 
     redesignating subsection (c) as subsection (e) and by 
     inserting after subsection (b) the following new subsection:
       ``(c) Multiemployer Plans.--The corporation shall prescribe 
     rules similar to the rules in subsection (a) for 
     multiemployer plans covered by this title that terminate 
     under section 4041A.
       ``(d) Plans Not Otherwise Subject to Title.--
       ``(1) Transfer to corporation.--The plan administrator of a 
     plan described in paragraph (4) may elect to transfer a 
     missing participant's benefits to the corporation upon 
     termination of the plan.
       ``(2) Information to the corporation.--To the extent 
     provided in regulations, the plan administrator of a plan 
     described in paragraph (4) shall, upon termination of the 
     plan, provide the corporation information with respect to 
     benefits of a missing participant if the plan transfers such 
     benefits--
       ``(A) to the corporation, or
       ``(B) to an entity other than the corporation or a plan 
     described in paragraph (4)(B)(ii).
       ``(3) Payment by the corporation.--If benefits of a missing 
     participant were transferred to the corporation under 
     paragraph (1), the corporation shall, upon location of the 
     participant or beneficiary, pay to the participant or 
     beneficiary the amount transferred (or the appropriate 
     survivor benefit) either--
       ``(A) in a single sum (plus interest), or
       ``(B) in such other form as is specified in regulations of 
     the corporation.
       ``(4) Plans described.--A plan is described in this 
     paragraph if--
       ``(A) the plan is a pension plan (within the meaning of 
     section 3(2))--
       ``(i) to which the provisions of this section do not apply 
     (without regard to this subsection), and
       ``(ii) which is not a plan described in paragraphs (2) 
     through (11) of section 4021(b), and
       ``(B) at the time the assets are to be distributed upon 
     termination, the plan--
       ``(i) has missing participants, and
       ``(ii) has not provided for the transfer of assets to pay 
     the benefits of all missing participants to another pension 
     plan (within the meaning of section 3(2)).
       ``(5) Certain provisions not to apply.--Subsections (a)(1) 
     and (a)(3) shall not apply to a plan described in paragraph 
     (4).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to distributions made after final regulations 
     implementing subsections (c) and (d) of section 4050 of the 
     Employee Retirement Income Security Act of 1974 (as added by 
     subsection (a)), respectively, are prescribed.

     SEC. 682. REDUCED PBGC PREMIUM FOR NEW PLANS OF SMALL 
                   EMPLOYERS.

       (a) In General.--Subparagraph (A) of section 4006(a)(3) of 
     the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1306(a)(3)(A)) is amended--
       (1) in clause (i), by inserting ``other than a new single-
     employer plan (as defined in subparagraph (F)) maintained by 
     a small employer (as so defined),'' after ``single-employer 
     plan,'',
       (2) in clause (iii), by striking the period at the end and 
     inserting ``, and'', and
       (3) by adding at the end the following new clause:
       ``(iv) in the case of a new single-employer plan (as 
     defined in subparagraph (F)) maintained by a small employer 
     (as so defined) for the plan year, $5 for each individual who 
     is a participant in such plan during the plan year.''.
       (b) Definition of New Single-Employer Plan.--Section 
     4006(a)(3) of the Employee Retirement Income Security Act of 
     1974 (29 U.S.C. 1306(a)(3)) is amended by adding at the end 
     the following new subparagraph:
       ``(F)(i) For purposes of this paragraph, a single-employer 
     plan maintained by a contributing sponsor shall be treated as 
     a new single-employer plan for each of its first 5 plan years 
     if, during the 36-month period ending on the date of the 
     adoption of such plan, the sponsor or any member of such 
     sponsor's controlled group (or any predecessor of either) 
     did not establish or maintain a plan to which this title 
     applies with respect to which benefits were accrued for 
     substantially the same employees as are in the new single-
     employer plan.
       ``(ii)(I) For purposes of this paragraph, the term `small 
     employer' means an employer which on the first day of any 
     plan year has, in aggregation with all members of the 
     controlled group of such employer, 100 or fewer employees.
       ``(II) In the case of a plan maintained by two or more 
     contributing sponsors that are not part of the same 
     controlled group, the employees of all contributing sponsors 
     and controlled groups of such sponsors shall be aggregated 
     for purposes of determining whether any contributing sponsor 
     is a small employer.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to plans established after December 31, 2001.

     SEC. 683. REDUCTION OF ADDITIONAL PBGC PREMIUM FOR NEW AND 
                   SMALL PLANS.

       (a) New Plans.--Subparagraph (E) of section 4006(a)(3) of 
     the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1306(a)(3)(E)) is amended by adding at the end the 
     following new clause:
       ``(v) In the case of a new defined benefit plan, the amount 
     determined under clause (ii) for any plan year shall be an 
     amount equal to the product of the amount determined under 
     clause (ii) and the applicable percentage. For purposes of 
     this clause, the term `applicable percentage' means--
       ``(I) 0 percent, for the first plan year.
       ``(II) 20 percent, for the second plan year.
       ``(III) 40 percent, for the third plan year.
       ``(IV) 60 percent, for the fourth plan year.
       ``(V) 80 percent, for the fifth plan year.

     For purposes of this clause, a defined benefit plan (as 
     defined in section 3(35)) maintained by a contributing 
     sponsor shall be treated as a new defined benefit plan for 
     each of its first 5 plan years if, during the 36-month period 
     ending on the date of the adoption of the plan, the sponsor 
     and each member of any controlled group including the sponsor 
     (or any predecessor of either) did not establish or maintain 
     a plan to which this title applies with respect to which 
     benefits were accrued for substantially the same employees as 
     are in the new plan.''.
       (b) Small Plans.--Paragraph (3) of section 4006(a) of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1306(a)), as amended by section 682(b), is amended--
       (1) by striking ``The'' in subparagraph (E)(i) and 
     inserting ``Except as provided in subparagraph (G), the'', 
     and
       (2) by inserting after subparagraph (F) the following new 
     subparagraph:
       ``(G)(i) In the case of an employer who has 25 or fewer 
     employees on the first day of the plan year, the additional 
     premium determined under subparagraph (E) for each 
     participant shall not exceed $5 multiplied by the number of 
     participants in the plan as of the close of the preceding 
     plan year.

[[Page S5479]]

       ``(ii) For purposes of clause (i), whether an employer has 
     25 or fewer employees on the first day of the plan year is 
     determined taking into consideration all of the employees of 
     all members of the contributing sponsor's controlled group. 
     In the case of a plan maintained by two or more contributing 
     sponsors, the employees of all contributing sponsors and 
     their controlled groups shall be aggregated for purposes of 
     determining whether the 25-or-fewer-employees limitation has 
     been satisfied.''.
       (c) Effective Dates.--
       (1) Subsection (a).--The amendments made by subsection (a) 
     shall apply to plans established after December 31, 2001.
       (2) Subsection (b).--The amendments made by subsection (b) 
     shall apply to plan years beginning after December 31, 2001.

     SEC. 684. AUTHORIZATION FOR PBGC TO PAY INTEREST ON PREMIUM 
                   OVERPAYMENT REFUNDS.

       (a) In General.--Section 4007(b) of the Employment 
     Retirement Income Security Act of 1974 (29 U.S.C. 1307(b)) is 
     amended--
       (1) by striking ``(b)'' and inserting ``(b)(1)'', and
       (2) by inserting at the end the following new paragraph:
       ``(2) The corporation is authorized to pay, subject to 
     regulations prescribed by the corporation, interest on the 
     amount of any overpayment of premium refunded to a designated 
     payor. Interest under this paragraph shall be calculated at 
     the same rate and in the same manner as interest is 
     calculated for underpayments under paragraph (1).''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to interest accruing for periods beginning not 
     earlier than the date of the enactment of this Act.

     SEC. 685. SUBSTANTIAL OWNER BENEFITS IN TERMINATED PLANS.

       (a) Modification of Phase-In of Guarantee.--Section 
     4022(b)(5) of the Employee Retirement Income Security Act of 
     1974 (29 U.S.C. 1322(b)(5)) is amended to read as follows:
       ``(5)(A) For purposes of this paragraph, the term `majority 
     owner' means an individual who, at any time during the 60-
     month period ending on the date the determination is being 
     made--
       ``(i) owns the entire interest in an unincorporated trade 
     or business,
       ``(ii) in the case of a partnership, is a partner who owns, 
     directly or indirectly, 50 percent or more of either the 
     capital interest or the profits interest in such partnership, 
     or
       ``(iii) in the case of a corporation, owns, directly or 
     indirectly, 50 percent or more in value of either the voting 
     stock of that corporation or all the stock of that 
     corporation.

     For purposes of clause (iii), the constructive ownership 
     rules of section 1563(e) of the Internal Revenue Code of 1986 
     shall apply (determined without regard to section 
     1563(e)(3)(C)).
       ``(B) In the case of a participant who is a majority owner, 
     the amount of benefits guaranteed under this section shall 
     equal the product of--
       ``(i) a fraction (not to exceed 1) the numerator of which 
     is the number of years from the later of the effective date 
     or the adoption date of the plan to the termination date, and 
     the denominator of which is 10, and
       ``(ii) the amount of benefits that would be guaranteed 
     under this section if the participant were not a majority 
     owner.''.
       (b) Modification of Allocation of Assets.--
       (1) Section 4044(a)(4)(B) of the Employee Retirement Income 
     Security Act of 1974 (29 U.S.C. 1344(a)(4)(B)) is amended by 
     striking ``section 4022(b)(5)'' and inserting ``section 
     4022(b)(5)(B)''.
       (2) Section 4044(b) of such Act (29 U.S.C. 1344(b)) is 
     amended--
       (A) by striking ``(5)'' in paragraph (2) and inserting 
     ``(4), (5),'', and
       (B) by redesignating paragraphs (3) through (6) as 
     paragraphs (4) through (7), respectively, and by inserting 
     after paragraph (2) the following new paragraph:
       ``(3) If assets available for allocation under paragraph 
     (4) of subsection (a) are insufficient to satisfy in full the 
     benefits of all individuals who are described in that 
     paragraph, the assets shall be allocated first to benefits 
     described in subparagraph (A) of that paragraph. Any 
     remaining assets shall then be allocated to benefits 
     described in subparagraph (B) of that paragraph. If assets 
     allocated to such subparagraph (B) are insufficient to 
     satisfy in full the benefits described in that subparagraph, 
     the assets shall be allocated pro rata among individuals on 
     the basis of the present value (as of the termination date) 
     of their respective benefits described in that 
     subparagraph.''.
       (c) Conforming Amendments.--
       (1) Section 4021 of the Employee Retirement Income Security 
     Act of 1974 (29 U.S.C. 1321) is amended--
       (A) in subsection (b)(9), by striking ``as defined in 
     section 4022(b)(6)'', and
       (B) by adding at the end the following new subsection:
       ``(d) For purposes of subsection (b)(9), the term 
     `substantial owner' means an individual who, at any time 
     during the 60-month period ending on the date the 
     determination is being made--
       ``(1) owns the entire interest in an unincorporated trade 
     or business,
       ``(2) in the case of a partnership, is a partner who owns, 
     directly or indirectly, more than 10 percent of either the 
     capital interest or the profits interest in such partnership, 
     or
       ``(3) in the case of a corporation, owns, directly or 
     indirectly, more than 10 percent in value of either the 
     voting stock of that corporation or all the stock of that 
     corporation.

     For purposes of paragraph (3), the constructive ownership 
     rules of section 1563(e) of the Internal Revenue Code of 1986 
     shall apply (determined without regard to section 
     1563(e)(3)(C)).''.
       (2) Section 4043(c)(7) of such Act (29 U.S.C. 1343(c)(7)) 
     is amended by striking ``section 4022(b)(6)'' and inserting 
     ``section 4021(d)''.
       (d) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to plan 
     terminations--
       (A) under section 4041(c) of the Employee Retirement Income 
     Security Act of 1974 (29 U.S.C. 1341(c)) with respect to 
     which notices of intent to terminate are provided under 
     section 4041(a)(2) of such Act (29 U.S.C. 1341(a)(2)) after 
     December 31, 2001, and
       (B) under section 4042 of such Act (29 U.S.C. 1342) with 
     respect to which proceedings are instituted by the 
     corporation after such date.
       (2) Conforming amendments.--The amendments made by 
     subsection (c) shall take effect on January 1, 2002.

     SEC. 686. PERIODIC PENSION BENEFITS STATEMENTS.

       (a) In General.--Section 105(a) of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1025 (a)) is amended 
     to read as follows:
       ``(a)(1) Except as provided in paragraph (2)--
       ``(A) the administrator of an individual account plan shall 
     furnish a pension benefit statement--
       ``(i) to a plan participant at least once annually, and
       ``(ii) to a plan beneficiary upon written request, and
       ``(B) the administrator of a defined benefit plan shall 
     furnish a pension benefit statement--
       ``(i) at least once every 3 years to each participant with 
     a nonforfeitable accrued benefit who is employed by the 
     employer maintaining the plan at the time the statement is 
     furnished to participants, and
       ``(ii) to a plan participant or plan beneficiary of the 
     plan upon written request.
       ``(2) A pension benefit statement under paragraph (1)--
       ``(A) shall indicate, on the basis of the latest available 
     information and reasonable estimates--
       ``(i) the total benefits accrued, and
       ``(ii) the nonforfeitable pension benefits, if any, which 
     have accrued, or the earliest date on which benefits will 
     become nonforfeitable,
       ``(B) shall be written in a manner calculated to be 
     understood by the average plan participant,
       ``(C) shall include a statement that the summary annual 
     report is available upon request, and
       ``(D) may be provided in written, electronic, or other 
     appropriate form.
       ``(3)(A) In the case of a defined benefit plan, the 
     requirements of paragraph (1)(B)(i) shall be treated as met 
     with respect to a participant if the administrator provides 
     the participant at least once each year with notice of the 
     availability of the pension benefit statement and the ways in 
     which the participant may obtain such statement. Such notice 
     shall be provided in written, electronic, or other 
     appropriate form, and may be included with other 
     communications to the participant if done in a manner 
     reasonably designed to attract the attention of the 
     participant.
       ``(B) The Secretary may provide that years in which no 
     employee or former employee benefits (within the meaning of 
     section 410(b) of the Internal Revenue Code of 1986) under 
     the plan need not be taken into account in determining the 3-
     year period under paragraph (1)(B)(i).''.
       (b) Conforming Amendments.--
       (1) Section 105 of the Employee Retirement Income Security 
     Act of 1974 (29 U.S.C. 1025) is amended by striking 
     subsection (d).
       (2) Section 105(b) of such Act (29 U.S.C. 1025(b)) is 
     amended to read as follows:
       ``(b) In no case shall a participant or beneficiary of a 
     plan be entitled to more than one statement described in 
     subsection (a)(1)(A) or (a)(1)(B)(ii), whichever is 
     applicable, in any 12-month period.''.
       (c) Model Statements.--The Secretary of Labor shall develop 
     a model benefit statement, written in a manner calculated to 
     be understood by the average plan participant, that may be 
     used by plan administrators in complying with the 
     requirements of section 105 of the Employee Retirement Income 
     Security Act of 1974.
       (d) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to plan years 
     beginning after December 31, 2001.
       (2) Collective bargaining agreements.--In the case of a 
     plan maintained pursuant to one or more collective bargaining 
     agreements between employee representatives and one or more 
     employers ratified by the date of the enactment of this Act, 
     the amendments made by this section shall not apply, with 
     respect to employees covered by any such agreement, for plan 
     years beginning before the earlier of--
       (A) the later of--
       (i) the date on which the last of such collective 
     bargaining agreements terminates (determined without regard 
     to any extension thereof on or after such date of the 
     enactment), or

[[Page S5480]]

       (ii) January 1, 2002, or
       (B) January 1, 2003.

     SEC. 687. BENEFIT SUSPENSION NOTICE.

       (a) Modification of Regulation.--The Secretary of Labor 
     shall modify the regulation under section 203(a)(3)(B) of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1053(a)(3)(B)) to provide that the notification required by 
     such regulation--
       (1) in the case of an employee who, after commencement of 
     payment of benefits under the plan, returns to service for 
     which benefit payments may be suspended under such section 
     203(a)(3)(B) shall be made during the first calendar month or 
     payroll period in which the plan withholds payments, and
       (2) in the case of any employee who is not described in 
     paragraph (1)--
       (A) may be included in the summary plan description for the 
     plan furnished in accordance with section 104(b) of such Act 
     (29 U.S.C. 1024(b)), rather than in a separate notice, and
       (B) need not include a copy of the relevant plan 
     provisions.
       (b) Effective Date.--The modification made under this 
     section shall apply to plan years beginning after December 
     31, 2001.

     SEC. 688. STUDIES.

       (a) Report on Pension Coverage.--Not later than 5 years 
     after the date of the enactment of this Act, the Secretary of 
     the Treasury, jointly with the Secretary of Labor, shall 
     submit a report to the Committee on Ways and Means and the 
     Committee on Education and the Workforce of the House of 
     Representatives and the Committee on Finance and the 
     Committee on Health, Education, Labor and Pensions of the 
     Senate a report on the effect of the provisions of the 
     Restoring Earnings to Lift Individuals and Empower Families 
     Act of 2001 on pension coverage, including--
       (1) any expansion of coverage for low- and middle-income 
     workers;
       (2) levels of pension benefits;
       (3) quality of pension coverage;
       (4) worker's access to and participation in plans; and
       (5) retirement security.
       (b) Study of Preretirement Use of Benefits.--
       (1) In general.--The Secretary of the Treasury, jointly 
     with the Secretary of Labor, shall conduct a study of--
       (A) current tax provisions allowing individuals to access 
     individual retirement plans and qualified retirement plan 
     benefits of such individual prior to retirement, including an 
     analysis of--
       (i) the extent of use of such current provisions by 
     individuals; and
       (ii) the extent to which such provisions undermine the goal 
     of accumulating adequate resources for retirement; and
       (B) the types of investment decisions made by individual 
     retirement plan beneficiaries and participants in self-
     directed qualified retirement plans, including an analysis 
     of--
       (i) current restrictions on investments; and
       (ii) the extent to which additional restrictions on 
     investments would facilitate the accumulation of adequate 
     income for retirement.
       (2) Report.--Not later than January 1, 2003, the Secretary 
     of the Treasury, jointly with the Secretary of Labor, shall 
     submit a report to the Committee on Ways and Means and the 
     Committee on Education and the Workforce of the House of 
     Representatives and the Committee on Finance and the 
     Committee on Health, Education, Labor and Pensions of the 
     Senate containing the results of the study conducted under 
     paragraph (1) and any recommendations.

     SEC. 689. ANNUAL REPORT DISSEMINATION.

       (a) Report Available Through Electronic Means.--Section 
     104(b)(3) of the Employee Retirement Income Security Act of 
     1974 (29 U.S.C. 1024(b)(3)) is amended by adding at the end 
     the following new sentence: ``The requirement to furnish 
     information under the previous sentence shall be satisfied if 
     the administrator makes such information reasonably available 
     through electronic means or other new technology''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to reports for years beginning after December 31, 
     2000.

     SEC. 690. CIVIL PENALTIES FOR BREACH OF FIDUCIARY 
                   RESPONSIBILITY.

       (a) Imposition and Amount of Penalty Made Discretionary.--
     Section 502(l)(1) of the Employee Retirement Income Security 
     Act of 1974 (29 U.S.C. 1132(l)(1)) is amended--
       (1) by striking ``shall'' and inserting ``may'', and
       (2) by striking ``equal to'' and inserting ``not greater 
     than''.
       (b) Applicable Recovery Amount.--Section 502(l)(2) of such 
     Act (29 U.S.C. 1132(l)(2)) is amended to read as follows:
       ``(2) For purposes of paragraph (1), the term `applicable 
     recovery amount' means any amount which is recovered from any 
     fiduciary or other person (or from any other person on behalf 
     of any such fiduciary or other person) with respect to a 
     breach or violation described in paragraph (1) on or after 
     the 30th day following receipt by such fiduciary or other 
     person of written notice from the Secretary of the violation, 
     whether paid voluntarily or by order of a court in a judicial 
     proceeding instituted by the Secretary under paragraph (2) or 
     (5) of subsection (a). The Secretary may, in the 
     Secretary's sole discretion, extend the 30-day period 
     described in the preceding sentence.''.
       (c) Other Rules.--Section 502(l) of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1132(l)) is amended by 
     adding at the end the following new paragraph:
       ``(5) A person shall be jointly and severally liable for 
     the penalty described in paragraph (1) to the same extent 
     that such person is jointly and severally liable for the 
     applicable recovery amount on which the penalty is based.
       ``(6) No penalty shall be assessed under this subsection 
     unless the person against whom the penalty is assessed is 
     given notice and opportunity for a hearing with respect to 
     the violation and applicable recovery amount.''.
       (d) Effective Dates.--
       (1) In general.--The amendments made by this section shall 
     apply to any breach of fiduciary responsibility or other 
     violation of part 4 of subtitle B of title I of the Employee 
     Retirement Income Security Act of 1974 occurring on or after 
     the date of enactment of this Act.
       (2) Transition rule.--In applying the amendment made by 
     subsection (b) (relating to applicable recovery amount), a 
     breach or other violation occurring before the date of 
     enactment of this Act which continues after the 180th day 
     after such date (and which may have been discontinued at any 
     time during its existence) shall be treated as having 
     occurred after such date of enactment.

     SEC. 690A. NOTICE AND CONSENT PERIOD REGARDING DISTRIBUTIONS.

       (a) Expansion of Period.--
       (1) Amendment of internal revenue code.--
       (A) In general.--Subparagraph (A) of section 417(a)(6) is 
     amended by striking ``90-day'' and inserting ``180-day''.
       (B) Modification of regulations.--The Secretary of the 
     Treasury shall modify the regulations under sections 402(f), 
     411(a)(11), and 417 of the Internal Revenue Code of 1986 to 
     substitute ``180 days'' for ``90 days'' each place it appears 
     in Treasury Regulations sections 1.402(f)-1, 1.411(a)-11(c), 
     and 1.417(e)-1(b).
       (2) Amendment of erisa.--Section 205(c)(7)(A) of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1055(c)(7)(A)) is amended by striking ``90-day'' and 
     inserting ``180-day''.
       (3) Effective date.--The amendments made by paragraphs 
     (1)(A) and (2) and the modifications required by paragraph 
     (1)(B) shall apply to years beginning after December 31, 
     2001.
       (b) Consent Regulation Inapplicable to Certain 
     Distributions.--
       (1) In general.--The Secretary of the Treasury shall modify 
     the regulations under section 411(a)(11) of the Internal 
     Revenue Code of 1986 to provide that the description of a 
     participant's right, if any, to defer receipt of a 
     distribution shall also describe the consequences of failing 
     to defer such receipt.
       (2) Model statement.--The Secretary of the Treasury shall 
     develop a model statement, written in a manner calculated to 
     be understood by the average plan participant, regarding 
     participants' rights to defer receipt of a distribution and 
     the consequences of so doing, that may be used by plan 
     administrators in complying with the requirements of this 
     section.
       (3) Effective date.--The modifications required by 
     paragraph (1) shall apply to years beginning after December 
     31, 2001.
       (c) Disclosure of Optional Forms of Benefits.--
       (1) Amendment of internal revenue code.--Section 417(a)(3) 
     (relating to plan to provide written explanation) is amended 
     by adding at the end the following:
       ``(C) Explanation of optional forms of benefits.--
       ``(i) In general.--If--

       ``(I) a plan provides optional forms of benefits, and
       ``(II) the present values of such forms of benefits are not 
     actuarially equivalent as of the annuity starting date,

     then each written explanation required to be provided under 
     subparagraph (A) shall include the information described in 
     clause (ii).
       ``(ii) Information.--A plan to which this subparagraph 
     applies shall include sufficient information (as determined 
     in accordance with regulations prescribed by the Secretary) 
     to allow the participant to understand the differences in the 
     present values of the optional forms of benefits provided by 
     the plan and the effect the participant's election as to the 
     form of benefit will have on the value of the benefits 
     available under the plan. Any such information shall be 
     provided in a manner calculated to be reasonably understood 
     by the average plan participant.''
       (2) Amendment of erisa.--Section 205(c)(3) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1055(c)(3)) 
     is amended by adding at the end the following:
       ``(C)(i) If--
       ``(I) a plan provides optional forms of benefits, and
       ``(II) the present values of such forms of benefits are not 
     actuarially equivalent as of the annuity starting date,

     then such plan shall include the information described in 
     clause (ii) with each written explanation required to be 
     provided under subparagraph (A).
       ``(ii) A plan to which this subparagraph applies shall 
     include sufficient information (as determined in accordance 
     with regulations prescribed by the Secretary of the Treasury) 
     to allow the participant to understand the differences in the 
     present values of the optional forms of benefits provided by 
     the plan

[[Page S5481]]

     and the effect the participant's election as to the form of 
     benefit will have on the value of the benefits available 
     under the plan. Any such information shall be provided in a 
     manner calculated to be reasonably understood by the average 
     plan participant.''
       (3) Effective date.--The amendments made by this subsection 
     shall apply to years beginning after December 31, 2001.

     SEC. 690B. AMENDMENTS REGARDING NATIONAL SUMMIT ON RETIREMENT 
                   SAVINGS.

       Section 517 of the Employee Retirement Income Security Act 
     of 1974 (29 U.S.C. 1147) is amended--
       (1) in subsection (a), by striking ``2001 and 2005 on or 
     after September 1 of each year involved'' and inserting 
     ``2001 or 2002, and 2005 and 2009. Such Summit shall be 
     convened in the calendar year 2001 or the first calendar 
     quarter of 2002 and shall be convened on or after September 1 
     of each year thereafter'';

       (2) in subsection (b), by adding at the end the following 
     new sentence: ``To effectuate the purposes of this paragraph, 
     the Secretary may enter into a cooperative agreement, 
     pursuant to the Federal Grant and Cooperative Agreement Act 
     of 1977 (31 U.S.C. 6301 et seq.).'';
       (3) in subsection (e)(2)--
       (A) by striking ``Committee on Labor and Human Resources'' 
     in subparagraph (D) and inserting ``Committee on Health, 
     Education, Labor, and Pensions'';
       (B) by striking subparagraph (F) and inserting the 
     following:
       ``(F) the Chairman and Ranking Member of the Subcommittee 
     on Labor, Health and Human Services, and Education of the 
     Committee on Appropriations of the House of Representatives 
     and the Chairman and Ranking Member of the Subcommittee on 
     Labor, Health and Human Services, and Education of the 
     Committee on Appropriations of the Senate;'';
       (C) by redesignating subparagraph (G) as subparagraph (J); 
     and
       (D) by inserting after subparagraph (F) the following new 
     subparagraphs:
       ``(G) the Chairman and Ranking Member of the Committee on 
     Finance of the Senate;
       ``(H) the Chairman and Ranking Member of the Committee on 
     Ways and Means of the House of Representatives;
       ``(I) the Chairman and Ranking Member of the Subcommittee 
     on Employer-Employee Relations of the Committee on Education 
     and the Workforce of the House of Representatives; and'';
       (4) in subsection (e)(3)(A)--
       (A) by striking ``There shall be no more than 200 
     additional participants.'' and inserting ``The participants 
     in the National Summit shall also include additional 
     participants appointed under this subparagraph.'';
       (B) by striking ``one-half shall be appointed by the 
     President,'' in clause (i) and inserting ``not more than 100 
     participants shall be appointed under this clause by the 
     President,'', and by striking ``and'' at the end of clause 
     (i);
       (C) by striking ``one-half shall be appointed by the 
     elected leaders of Congress'' in clause (ii) and inserting 
     ``not more than 100 participants shall be appointed under 
     this clause by the elected leaders of Congress'', and by 
     striking the period at the end of clause (ii) and inserting 
     ``; and''; and
       (D) by adding at the end the following new clause:
       ``(iii) The President, in consultation with the elected 
     leaders of Congress referred to in subsection (a), may 
     appoint under this clause additional participants to the 
     National Summit. The number of such additional participants 
     appointed under this clause may not exceed the lesser of 3 
     percent of the total number of all additional participants 
     appointed under this paragraph, or 10. Such additional 
     participants shall be appointed from persons nominated by the 
     organization referred to in subsection (b)(2) which is made 
     up of private sector businesses and associations partnered 
     with Government entities to promote long term financial 
     security in retirement through savings and with which the 
     Secretary is required thereunder to consult and cooperate and 
     shall not be Federal, State, or local government 
     employees.'';
       (5) in subsection (f)(1)(C), by inserting ``, no later than 
     90 days prior to the date of the commencement of the National 
     Summit,'' after ``comment'' in paragraph (1)(C);
       (6) in subsection (g), by inserting ``, in consultation 
     with the congressional leaders specified in subsection 
     (e)(2),'' after ``report'';
       (7) in subsection (i)--
       (A) by striking ``1997'' in paragraph (1) and inserting 
     ``2001''; and
       (B) by adding at the end the following new paragraph:
       ``(3) Reception and representation authority.--The 
     Secretary is hereby granted reception and representation 
     authority limited specifically to the events at the National 
     Summit. The Secretary shall use any private contributions 
     accepted in connection with the National Summit prior to 
     using funds appropriated for purposes of the National Summit 
     pursuant to this paragraph.
       ``(4) Funds available.--Of the funds appropriated to the 
     Pension and Welfare Benefits Administration for fiscal year 
     2001, $500,000 shall remain available without fiscal year 
     limitation through September 30, 2002, for the purpose of 
     defraying the costs of the National Summit.''; and
       (8) in subsection (k)--
       (A) by striking ``shall'' and inserting ``may'' ; and
       (B) by striking ``fiscal year 1998'' and inserting ``fiscal 
     years 2001 or 2002, and 2005, and 2009''.
       On page 310, strike lines 10 and 11 and insert the 
     following:

                      Subtitle I--Plan Amendments

     SEC. 692. PROVISIONS RELATING TO PLAN AMENDMENTS.

       (a) In General.--If this section applies to any plan or 
     contract amendment--
       (1) such plan or contract shall be treated as being 
     operated in accordance with the terms of the plan during the 
     period described in subsection (b)(2)(A), and
       (2) except as provided by the Secretary of the Treasury, 
     such plan shall not fail to meet the requirements of section 
     411(d)(6) of the Internal Revenue Code of 1986 or section 
     204(g) of the Employee Retirement Income Security Act of 1974 
     by reason of such amendment.
       (b) Amendments to Which Section Applies.--
       (1) In general.--This section shall apply to any amendment 
     to any plan or annuity contract which is made--
       (A) pursuant to any amendment made by this Act, or pursuant 
     to any regulation issued under this Act, and
       (B) on or before the last day of the first plan year 
     beginning on or after January 1, 2005.

     In the case of a governmental plan (as defined in section 
     414(d) of the Internal Revenue Code of 1986), this paragraph 
     shall be applied by substituting ``2007'' for ``2005''.
       (2) Conditions.--This section shall not apply to any 
     amendment unless--
       (A) during the period--
       (i) beginning on the date the legislative or regulatory 
     amendment described in paragraph (1)(A) takes effect (or in 
     the case of a plan or contract amendment not required by such 
     legislative or regulatory amendment, the effective date 
     specified by the plan); and
       (ii) ending on the date described in paragraph (1)(B) (or, 
     if earlier, the date the plan or contract amendment is 
     adopted),

     the plan or contract is operated as if such plan or contract 
     amendment were in effect; and
       (B) such plan or contract amendment applies retroactively 
     for such period.

Subtitle J--Compliance With Congressional Budget Act
                                  ____


  SA 783. Mr. TORRICELLI submitted an amendment intended to be proposed 
by him to the bill H.R. 1836, to provide for reconciliation pursuant to 
section 104 of the concurrent resolution on the budget for fiscal year 
2002; which was ordered to lie on the table; as follows:

       At the end of subtitle B of title IV add the following:

     SEC. __. EXCLUSION FROM INCOME OF CERTAIN AMOUNTS CONTRIBUTED 
                   TO COVERDELL EDUCATION SAVINGS ACCOUNTS.

       (a) In General.--Section 127 (relating to education 
     assistance programs), as amended by section 411(a), is 
     amended by redesignating subsection (d) as subsection (e) and 
     by inserting after subsection (c) the following new 
     subsection:
       ``(d) Qualified Coverdell Education Savings Account 
     Contributions.--
       ``(1) In general.--Gross income of an employee shall not 
     include amounts paid or incurred by the employer for a 
     qualified Coverdell education savings account contribution on 
     behalf of the employee.
       ``(2) Qualified coverdell education savings account 
     contribution.--For purposes of this subsection--
       ``(A) In general.--The term `qualified Coverdell education 
     savings account contribution' means an amount contributed 
     pursuant to an educational assistance program described in 
     subsection (b) by an employer to a Coverdell education 
     savings account established and maintained for the benefit of 
     an employee or the employee's spouse, or any lineal 
     descendent of either.
       ``(B) Dollar limit.--A contribution by an employer to a 
     Coverdell education savings account shall not be treated as a 
     qualified Coverdell education savings account contribution to 
     the extent that the contribution, when added to prior 
     contributions by the employer during the calendar year to 
     Coverdell education savings accounts established and 
     maintained for the same beneficiary, exceeds $500.
       ``(3) Special rules.--
       ``(A) Contributions not treated as educational assistance 
     in determining maximum exclusion.--For purposes of subsection 
     (a)(2), qualified Coverdell education savings account 
     contributions shall not be treated as educational assistance.
       ``(B) Self-employed not treated as employee.--For purposes 
     of this subsection, subsection (c)(2) shall not apply.
       ``(C) Adjusted gross income phaseout of account 
     contribution not applicable to individual employers.--The 
     limitation under section 530(c) shall not apply to a 
     qualified Coverdell education savings account contribution 
     made by an employer who is an individual.
       ``(D) Contributions not treated as an investment in the 
     contract.--For purposes of section 530(d), a qualified 
     Coverdell education savings account contribution shall not be 
     treated as an investment in the contract.''.
       (E) FICA exclusion.--For purposes of section 530(d), the 
     exclusion from FICA taxes shall not apply.
       (b) Reporting Requirement.--Section 6051(a) (relating to 
     receipts for employees) is

[[Page S5482]]

     amended by striking ``and'' at the end of paragraph (10), by 
     striking the period at the end of paragraph (11) and 
     inserting ``, and'', and by adding at the end the following 
     new paragraph:
       ``(12) the amount of any qualified Coverdell education 
     savings account contribution under section 127(d) with 
     respect to such employee.''.
       (c) Conforming Amendment.--Section 221(e)(2)(A) is amended 
     by inserting ``(other than under subsection (d) thereof)'' 
     after ``section 127''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to contributions made in taxable years beginning 
     after December 31, 2001.
                                  ____

  SA 784. Mr. HARKIN (for himself and Mr. Johnson) submitted an 
amendment intended to be proposed by him to the bill H.R. 1836, to 
provide for reconciliation pursuant to section 104 of the concurrent 
resolution on the budget for fiscal year 2002; which was ordered to lie 
on the table; as follows:

       At the end of subtitle D of title IV, add the following:

     SEC. __. ABOVE-THE-LINE DEDUCTION FOR QUALIFIED EMERGENCY 
                   RESPONSE EXPENSES OF ELIGIBLE EMERGENCY 
                   RESPONSE PROFESSIONALS.

       (a) Deduction Allowed.--Part VII of subchapter B of chapter 
     1 (relating to additional itemized deductions for 
     individuals), as amended by this Act, is amended by 
     redesignating section 224 as section 225 and by inserting 
     after section 223 the following new section:

     ``SEC. 224. QUALIFIED EMERGENCY RESPONSE EXPENSES.

       ``(a) Allowance of Deduction.--In the case of an eligible 
     emergency response professional, there shall be allowed as a 
     deduction an amount equal to the qualified expenses paid or 
     incurred by the taxpayer during the taxable year.
       ``(b) Definitions.--For purposes of this section--
       ``(1) Eligible emergency response professional.--The term 
     `eligible emergency response professional' includes--
       ``(A) a full-time employee of any police department or fire 
     department which is organized and operated by a governmental 
     entity to provide police protection, firefighting service, or 
     emergency medical services for any area within the 
     jurisdiction of such governmental entity,
       ``(B) an emergency medical technician licensed by a State 
     who is employed by a State or non-profit to provide emergency 
     medical services, and
       ``(C) a member of a volunteer fire department which is 
     organized to provide firefighting or emergency medical 
     services for any area within the jurisdiction of a 
     governmental entity which is not provided with any other 
     firefighting services.
       ``(2) Governmental entity.--The term `governmental entity' 
     means a State (or political subdivision thereof), Indian 
     tribal (or political subdivision thereof), or Federal 
     government.
       ``(3) Qualified expenses.--The term `qualified expenses' 
     means unreimbursed expenses for police and firefighter 
     activities, as determined by the Secretary.
       ``(c) Denial of Double Benefit.--
       ``(1) In general.--No other deduction or credit shall be 
     allowed under this chapter for any amount taken into account 
     for which a deduction is allowed under this section.
       ``(2) Coordination with exclusions.--A deduction shall be 
     allowed under subsection (a) for qualified expenses only to 
     the extent the amount of such expenses exceeds the amount 
     excludable under section 135, 529(c)(1), or 530(d)(2) for the 
     taxable year.
       ``(d) Termination.--This section shall not apply to taxable 
     years beginning after December 31, 2006.''.
       (b) Deduction Allowed in Computing Adjusted Gross Income.--
     Section 62(a) (relating to adjusted gross income defined), as 
     amended by this Act, is amended by inserting after paragraph 
     (19) the following new paragraph:
       ``(20) Qualified professional development expenses.--The 
     deduction allowed by section 224.''.
       (c) Conforming Amendments.--
       (1) Sections 86(b)(2), 135(c)(4), 137(b)(3), and 219(g)(3), 
     as amended by this Act, are each amended by inserting 
     ``224,'' after ``221,''.
       (2) Section 221(b)(2)(C), as amended by this Act, is 
     amended by inserting ``224,'' before ``911''.
       (3) Section 469(i)(3)(E), as amended by this Act, is 
     amended by striking ``and 223'' and inserting ``, 223, and 
     224''.
       (4) The table of sections for part VII of subchapter B of 
     chapter 1, as amended by this Act, is amended by striking the 
     item relating to section 223 and inserting the following new 
     items:

``Sec. 224. Qualified emergency response expenses.
``Sec. 225. Cross reference.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2001.

                          ____________________