[Congressional Record Volume 147, Number 177 (Wednesday, December 19, 2001)]
[House]
[Pages H10827-H10887]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
ECONOMIC SECURITY AND WORKER ASSISTANCE ACT OF 2001
Mr. THOMAS. Mr. Speaker, pursuant to House Resolution 320, I call up
the bill (H.R. 3529) to provide tax incentives for economic recovery
and assistance to displaced workers, and ask for its immediate
consideration.
The Clerk read the title of the bill.
The text of H.R. 3529 is as follows:
H.R. 3529
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; ETC.
(a) Short Title.--This Act may be cited as the ``Economic
Security and Worker Assistance Act of 2001''.
(b) References to Internal Revenue Code of 1986.--Except as
otherwise expressly provided, whenever in this Act an
amendment or repeal is expressed in terms of an amendment to,
or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.
(c) Table of Contents.--
Sec. 1. Short title; etc.
TITLE I--INDIVIDUAL PROVISIONS
Sec. 101. Supplemental stimulus payments.
Sec. 102. Acceleration of 25 percent individual income tax rate.
TITLE II--BUSINESS PROVISIONS
Sec. 201. Special depreciation allowance for certain property acquired
after September 10, 2001, and before September 11, 2004.
Sec. 202. Temporary increase in expensing under section 179.
Sec. 203. Alternative minimum tax reform.
Sec. 204. Carryback of certain net operating losses allowed for 5
years.
Sec. 205. Recovery period for depreciation of certain leasehold
improvements.
TITLE III--EXTENSIONS OF CERTAIN EXPIRING PROVISIONS
Subtitle A--Extensions
Sec. 301. Allowance of nonrefundable personal credits against regular
and minimum tax liability.
Sec. 302. Credit for qualified electric vehicles.
Sec. 303. Credit for electricity produced from renewable resources.
Sec. 304. Work opportunity credit.
Sec. 305. Welfare-to-work credit.
Sec. 306. Deduction for clean-fuel vehicles and certain refueling
property.
Sec. 307. Taxable income limit on percentage depletion for oil and
natural gas produced from marginal properties.
Sec. 308. Qualified zone academy bonds.
Sec. 309. Cover over of tax on distilled spirits.
Sec. 310. Parity in the application of certain limits to mental health
benefits.
Sec. 311. Temporary special rules for taxation of life insurance
companies.
Sec. 312. Availability of medical savings accounts.
Sec. 313. Incentives for Indian employment and property on Indian
reservations.
Sec. 314. Subpart F exemption for active financing.
Sec. 315. Repeal of requirement for approved diesel or kerosene
terminals.
Subtitle B--Temporary Assistance for Needy Families
Sec. 321. Reauthorization of TANF supplemental grants for population
increases for fiscal year 2002.
Sec. 322. 1-year extension of contingency fund under the TANF program.
TITLE IV--TAX BENEFITS FOR AREA OF NEW YORK CITY DAMAGED IN TERRORIST
ATTACKS ON SEPTEMBER 11, 2001
Sec. 401. Tax benefits for area of New York City damaged in terrorist
attacks on September 11, 2001.
TITLE V--RELIEF PROVISIONS FOR VICTIMS OF TERRORIST ATTACKS,
PRESIDENTIALLY DECLARED DISASTERS, AND CERTAIN OTHER DISASTERS
Subtitle A--Relief Provisions for Victims of Terrorist Attacks
Sec. 501. Income taxes of victims of terrorist attacks.
Sec. 502. Exclusion of certain death benefits.
Sec. 503. Estate tax reduction.
Sec. 504. Payments by charitable organizations treated as exempt
payments.
Sec. 505. Exclusion of certain cancellations of indebtedness.
Subtitle B--Other Relief Provisions
Sec. 511. Exclusion for disaster relief payments.
Sec. 512. Authority to postpone certain deadlines and required actions.
Sec. 513. Application of certain provisions to terroristic or military
actions.
Sec. 514. Clarification of due date for airline excise tax deposits.
Sec. 515. Treatment of certain structured settlement payments.
Sec. 516. Personal exemption deduction for certain disability trusts.
Sec. 517. Disclosure of tax information in terrorism and national
security investigations.
TITLE VI--MISCELLANEOUS AND TECHNICAL PROVISIONS
Subtitle A--General Miscellaneous Provisions
Sec. 601. Allowance of electronic 1099's.
Sec. 602. Excluded cancellation of indebtedness income of S corporation
not to result in adjustment to basis of stock of
shareholders.
Sec. 603. Limitation on use of nonaccrual experience method of
accounting.
Sec. 604. Exclusion for foster care payments to apply to payments by
qualified placement agencies.
Sec. 605. Interest rate range for additional funding requirements.
Sec. 606. Adjusted gross income determined by taking into account
certain expenses of elementary and secondary school
teachers.
Subtitle B--Technical Corrections
Sec. 611. Amendments related to Economic Growth and Tax Relief
Reconciliation Act of 2001.
Sec. 612. Amendments related to Community Renewal Tax Relief Act of
2000.
Sec. 613. Amendments related to the Tax Relief Extension Act of 1999.
Sec. 614. Amendments related to the Taxpayer Relief Act of 1997.
Sec. 615. Amendment related to the Balanced Budget Act of 1997.
Sec. 616. Other technical corrections.
Sec. 617. Clerical amendments.
Sec. 618. Additional corrections.
TITLE VII--UNEMPLOYMENT ASSISTANCE
Sec. 701. Short title.
Sec. 702. Federal-State agreements.
Sec. 703. Temporary extended unemployment compensation account.
Sec. 704. Payments to States having agreements for the payment of
temporary extended unemployment compensation.
[[Page H10828]]
Sec. 705. Financing provisions.
Sec. 706. Fraud and overpayments.
Sec. 707. Definitions.
Sec. 708. Applicability.
Sec. 709. Special Reed Act transfer in fiscal year 2002.
TITLE VIII--DISPLACED WORKER HEALTH INSURANCE CREDIT
Sec. 801. Displaced worker health insurance credit.
Sec. 802. Advance payment of displaced worker health insurance credit.
TITLE IX--EMPLOYMENT AND TRAINING ASSISTANCE AND TEMPORARY HEALTH CARE
COVERAGE ASSISTANCE
Sec. 901. Employment and training assistance and temporary health care
coverage assistance.
TITLE X--TEMPORARY STATE HEALTH CARE ASSISTANCE
Sec. 1001. Temporary State health care assistance.
TITLE XI--SOCIAL SECURITY HELD HARMLESS; BUDGETARY TREATMENT OF ACT
Sec. 1101. No impact on social security trust funds.
Sec. 1102. Emergency designation.
TITLE I--INDIVIDUAL PROVISIONS
SEC. 101. SUPPLEMENTAL STIMULUS PAYMENTS.
(a) In General.--Section 6428 (relating to acceleration of
10 percent income tax rate bracket benefit for 2001) is
amended by adding at the end the following new subsection:
``(f) Supplemental Stimulus Payments.--
``(1) In general.--Each individual who was an eligible
individual for such individual's first taxable year beginning
in 2000 and who, before October 16, 2001, filed a return of
tax imposed by subtitle A for such taxable year shall be
treated as having made a payment against the tax imposed by
chapter 1 for such first taxable year in an amount equal to
the supplemental refund amount for such taxable year.
``(2) Supplemental refund amount.--For purposes of this
subsection, the supplemental refund amount is an amount equal
to the excess (if any) of--
``(A)(i) $600 in the case of taxpayers to whom section 1(a)
applies,
``(ii) $500 in the case of taxpayers to whom section 1(b)
applies, and
``(iii) $300 in the case of taxpayers to whom subsections
(c) or (d) of section 1 applies, over
``(B) the taxpayer's advance refund amount under subsection
(e).
``(3) Timing of payments.--In the case of any overpayment
attributable to this subsection, the Secretary shall, subject
to the provisions of this title, refund or credit such
overpayment as rapidly as possible.
``(4) No interest.--No interest shall be allowed on any
overpayment attributable to this subsection.''
(b) Conforming Amendments.--
(1) Subparagraph (A) of section 6428(d)(1) is amended by
striking ``subsection (e)'' and inserting ``subsections (e)
and (f)''.
(2) Subparagraph (B) of section 6428(d)(1) is amended by
striking ``subsection (e)'' and inserting ``subsection (e) or
(f)''.
(3) Paragraph (3) of section 6428(e) is amended by
inserting before the period ``(or, if earlier, the date of
the enactment of the Economic Security and Worker Assistance
Act of 2001)''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 102. ACCELERATION OF 25 PERCENT INDIVIDUAL INCOME TAX
RATE.
(a) In General.--The table contained in paragraph (2) of
section 1(i) (relating to reductions in rates after June 30,
2001) is amended--
(1) by striking ``27.0%'' and inserting ``25.0%'', and
(2) by striking ``26.0%'' and inserting ``25.0%''.
(b) Reduction Not To Increase Minimum Tax.--
(1) Subparagraph (A) of section 55(d)(1) is amended by
striking ``($49,000 in the case of taxable years beginning in
2001, 2002, 2003, and 2004)'' and inserting ``($49,000 in the
case of taxable years beginning in 2001, $52,200 in the case
of taxable years beginning in 2002 or 2003, and $50,700 in
the case of taxable years beginning in 2004)''.
(2) Subparagraph (B) of section 55(d)(1) is amended by
striking ``($35,750 in the case of taxable years beginning in
2001, 2002, 2003, and 2004)'' and inserting ``($35,750 in the
case of taxable years beginning in 2001, $37,350 in the case
of taxable years beginning in 2002 or 2003, and $36,600 in
the case of taxable years beginning in 2004)''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2001.
(d) Section 15 Not To Apply.--No amendment made by this
section shall be treated as a change in a rate of tax for
purposes of section 15 of the Internal Revenue Code of 1986 .
TITLE II--BUSINESS PROVISIONS
SEC. 201. SPECIAL DEPRECIATION ALLOWANCE FOR CERTAIN PROPERTY
ACQUIRED AFTER SEPTEMBER 10, 2001, AND BEFORE
SEPTEMBER 11, 2004.
(a) In General.--Section 168 (relating to accelerated cost
recovery system) is amended by adding at the end the
following new subsection:
``(k) Special Allowance for Certain Property Acquired After
September 10, 2001, and Before September 11, 2004.--
``(1) Additional allowance.--In the case of any qualified
property--
``(A) the depreciation deduction provided by section 167(a)
for the taxable year in which such property is placed in
service shall include an allowance equal to 30 percent of the
adjusted basis of the qualified property, and
``(B) the adjusted basis of the qualified property shall be
reduced by the amount of such deduction before computing the
amount otherwise allowable as a depreciation deduction under
this chapter for such taxable year and any subsequent taxable
year.
``(2) Qualified property.--For purposes of this
subsection--
``(A) In general.--The term `qualified property' means
property--
``(i)(I) to which this section applies which has a recovery
period of 20 years or less or which is water utility
property, or
``(II) which is computer software (as defined in section
167(f)(1)(B)) for which a deduction is allowable under
section 167(a) without regard to this subsection,
``(ii) the original use of which commences with the
taxpayer after September 10, 2001,
``(iii) which is--
``(I) acquired by the taxpayer after September 10, 2001,
and before September 11, 2004, but only if no written binding
contract for the acquisition was in effect before September
11, 2001, or
``(II) acquired by the taxpayer pursuant to a written
binding contract which was entered into after September 10,
2001, and before September 11, 2004, and
``(iv) which is placed in service by the taxpayer before
January 1, 2005, or, in the case of property described in
subparagraph (B), before January 1, 2006.
``(B) Certain property having longer production periods
treated as qualified property.--
``(i) In general.--The term `qualified property' includes
property--
``(I) which meets the requirements of clauses (i), (ii),
and (iii) of subparagraph (A),
``(II) which has a recovery period of at least 10 years or
is transportation property, and
``(III) which is subject to section 263A by reason of
clause (ii) or (iii) of subsection (f)(1)(B) thereof.
``(ii) Only pre-september 11, 2004, basis eligible for
additional allowance.--In the case of property which is
qualified property solely by reason of clause (i), paragraph
(1) shall apply only to the extent of the adjusted basis
thereof attributable to manufacture, construction, or
production before September 11, 2004.
``(iii) Transportation property.--For purposes of this
subparagraph, the term `transportation property' means
tangible personal property used in the trade or business of
transporting persons or property.
``(C) Exceptions.--
``(i) Alternative depreciation property.--The term
`qualified property' shall not include any property to which
the alternative depreciation system under subsection (g)
applies, determined--
``(I) without regard to paragraph (7) of subsection (g)
(relating to election to have system apply), and
``(II) after application of section 280F(b) (relating to
listed property with limited business use).
``(ii) Election out.--If a taxpayer makes an election under
this clause with respect to any class of property for any
taxable year, this subsection shall not apply to all property
in such class placed in service during such taxable year.
``(iii) Qualified leasehold improvement property.--The term
`qualified property' shall not include any qualified
leasehold improvement property (as defined in section
168(e)(6)).
``(D) Special rules.--
``(i) Self-constructed property.--In the case of a taxpayer
manufacturing, constructing, or producing property for the
taxpayer's own use, the requirements of clause (iii) of
subparagraph (A) shall be treated as met if the taxpayer
begins manufacturing, constructing, or producing the property
after September 10, 2001, and before September 11, 2004.
``(ii) Sale-leasebacks.--For purposes of subparagraph
(A)(ii), if property--
``(I) is originally placed in service after September 10,
2001, by a person, and
``(II) sold and leased back by such person within 3 months
after the date such property was originally placed in
service,
such property shall be treated as originally placed in
service not earlier than the date on which such property is
used under the leaseback referred to in subclause (II).
``(E) Coordination with section 280f.--For purposes of
section 280F--
``(i) Automobiles.--In the case of a passenger automobile
(as defined in section 280F(d)(5)) which is qualified
property, the Secretary shall increase the limitation under
section 280F(a)(1)(A)(i) by $4,600.
``(ii) Listed property.--The deduction allowable under
paragraph (1) shall be taken into account in computing any
recapture amount under section 280F(b)(2).''
(b) Allowance Against Alternative Minimum Tax.--
(1) In general.--Section 56(a)(1)(A) (relating to
depreciation adjustment for alternative minimum tax) is
amended by adding at the end the following new clause:
``(iii) Additional allowance for certain property acquired
after september 10, 2001, and before september 11, 2004.--The
deduction under section 168(k) shall be allowed.''
[[Page H10829]]
(2) Conforming amendment.--Clause (i) of section
56(a)(1)(A) is amended by striking ``clause (ii)'' both
places it appears and inserting ``clauses (ii) and (iii)''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after September 10,
2001, in taxable years ending after such date.
SEC. 202. TEMPORARY INCREASE IN EXPENSING UNDER SECTION 179.
(a) In General.--The table contained in section 179(b)(1)
(relating to dollar limitation) is amended to read as
follows:
``If thThe applicable
amount is:
2001.....................................................$24,000
2002 or 2003.............................................$35,000
2004 or thereafter.....................................$25,000.''
(b) Temporary Increase in Amount of Property Triggering
Phaseout of Maximum Benefit.--Paragraph (2) of section 179(b)
is amended by inserting before the period ``($325,000 in the
case of taxable years beginning during 2002 or 2003)''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2001.
SEC. 203. ALTERNATIVE MINIMUM TAX REFORM.
(a) Repeal of Preference for Depreciation.--
(1) Paragraph (1) of section 56(a) is amended by adding at
the end the following new subparagraph:
``(E) Termination.--This paragraph shall not apply to
property placed in service in taxable years beginning after
December 31, 2001.''
(2) Paragraph (5) of section 56(a) is amended by adding at
the end: ``This paragraph shall not apply to property placed
in service in taxable years beginning after December 31,
2001.''
(b) Repeal of 90 Percent Limitation on Foreign Tax
Credits.--
(1) Subsection (a) of section 59 is amended by striking
paragraph (2) and by redesignating paragraphs (3) and (4) as
paragraphs (2) and (3), respectively.
(2) Subclause (II) of section 53(d)(1)(B)(i) is amended by
striking ``and if section 59(a)(2) did not apply''.
(c) Repeal of 90 Percent Limitation on Net Operating Loss
Deduction.--Subparagraph (A) of section 56(d)(1), as amended
by section 204, is amended to read as follows:
``(A) the amount of such deduction shall not exceed
alternative minimum taxable income determined without regard
to such deduction, and''.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2001.
SEC. 204. CARRYBACK OF CERTAIN NET OPERATING LOSSES ALLOWED
FOR 5 YEARS.
(a) In General.--Paragraph (1) of section 172(b) (relating
to years to which loss may be carried) is amended by adding
at the end the following new subparagraph:
``(H) In the case of a taxpayer which has a net operating
loss for any taxable year ending during 2001 or 2002,
subparagraph (A)(i) shall be applied by substituting `5' for
`2' and subparagraph (F) shall not apply.''
(b) Election To Disregard 5-Year Carryback.--Section 172
(relating to net operating loss deduction) is amended by
redesignating subsection (j) as subsection (k) and by
inserting after subjection (i) the following new subsection:
``(j) Election To Disregard 5-Year Carryback for Certain
Net Operating Losses.--Any taxpayer entitled to a 5-year
carryback under subsection (b)(1)(H) from any loss year may
elect to have the carryback period with respect to such loss
year determined without regard to subsection (b)(1)(H). Such
election shall be made in such manner as may be prescribed by
the Secretary and shall be made by the due date (including
extensions of time) for filing the taxpayer's return for the
taxable year of the net operating loss. Such election, once
made for any taxable year, shall be irrevocable for such
taxable year.''
(c) Temporary Suspension of 90 Percent Limit on Certain NOL
Carrybacks.--
(1) In general.--Subparagraph (A) of section 56(d)(1)
(relating to general rule defining alternative tax net
operating loss deduction) is amended to read as follows:
``(A) the amount of such deduction shall not exceed the sum
of--
``(i) the lesser of--
``(I) the amount of such deduction attributable to net
operating losses (other than the deduction attributable to
carrybacks described in clause (ii)(I)), or
``(II) 90 percent of alternative minimum taxable income
determined without regard to such deduction, plus
``(ii) the lesser of--
``(I) the amount of such deduction attributable to
carrybacks of net operating losses for taxable years ending
during 2001 or 2002, or
``(II) alternative minimum taxable income determined
without regard to such deduction reduced by the amount
determined under clause (i), and''.
(2) Effective date.--The amendment made by this subsection
shall apply to taxable years beginning before January 1,
2002.
(d) Effective Date.--Except as provided in subsection (c),
the amendments made by this section shall apply to net
operating losses for taxable years ending after December 31,
2000.
SEC. 205. RECOVERY PERIOD FOR DEPRECIATION OF CERTAIN
LEASEHOLD IMPROVEMENTS.
(a) 15-Year Recovery Period.--Subparagraph (E) of section
168(e)(3) (relating to 15-year property) is amended by
striking ``and'' at the end of clause (ii), by striking the
period at the end of clause (iii) and inserting ``, and'',
and by adding at the end the following new clause:
``(iv) any qualified leasehold improvement property.''
(b) Qualified Leasehold Improvement Property.--Subsection
(e) of section 168 is amended by adding at the end the
following new paragraph:
``(6) Qualified leasehold improvement property.--
``(A) In general.--The term `qualified leasehold
improvement property' means any improvement to an interior
portion of a building which is nonresidential real property
if--
``(i) such improvement is made under or pursuant to a lease
(as defined in subsection (h)(7))--
``(I) by the lessee (or any sublessee) of such portion, or
``(II) by the lessor of such portion,
``(ii) such portion is to be occupied exclusively by the
lessee (or any sublessee) of such portion, and
``(iii) such improvement is placed in service more than 3
years after the date the building was first placed in
service.
``(B) Certain improvements not included.--Such term shall
not include any improvement for which the expenditure is
attributable to--
``(i) the enlargement of the building,
``(ii) any elevator or escalator,
``(iii) any structural component benefiting a common area,
and
``(iv) the internal structural framework of the building.
``(C) Definitions and special rules.--For purposes of this
paragraph--
``(i) Commitment to lease treated as lease.--A commitment
to enter into a lease shall be treated as a lease, and the
parties to such commitment shall be treated as lessor and
lessee, respectively.
``(ii) Related persons.--A lease between related persons
shall not be considered a lease. For purposes of the
preceding sentence, the term `related persons' means--
``(I) members of an affiliated group (as defined in section
1504), and
``(II) persons having a relationship described in
subsection (b) of section 267; except that, for purposes of
this clause, the phrase `80 percent or more' shall be
substituted for the phrase `more than 50 percent' each place
it appears in such subsection.
``(D) Improvements made by lessor.--
``(i) In general.--In the case of an improvement made by
the person who was the lessor of such improvement when such
improvement was placed in service, such improvement shall be
qualified leasehold improvement property (if at all) only so
long as such improvement is held by such person.
``(ii) Exception for changes in form of business.--Property
shall not cease to be qualified leasehold improvement
property under clause (i) by reason of--
``(I) death,
``(II) a transaction to which section 381(a) applies, or
``(III) a mere change in the form of conducting the trade
or business so long as the property is retained in such trade
or business as qualified leasehold improvement property and
the taxpayer retains a substantial interest in such trade or
business.
``(iii) Treatment of failures to maintain substantial
interest in trade or business.--In the case of property to
which clause (ii)(III) would apply but for the failure of the
taxpayer to retain a substantial interest in a trade or
business, the remaining adjusted basis of such property shall
be depreciated under this section over 39 years.''
(c) Requirement To Use Straight Line Method.--Paragraph (3)
of section 168(b) is amended by adding at the end the
following new subparagraph:
``(G) Qualified leasehold improvement property described in
subsection (e)(6).''
(d) Alternative System.--The table contained in section
168(g)(3)(B) is amended by adding at the end the following
new item:
``(E)(iv).....................................................15''.
(e) Effective Date.--The amendments made by this section
shall apply to qualified leasehold improvement property
placed in service after September 10, 2001.
TITLE III--EXTENSIONS OF CERTAIN EXPIRING PROVISIONS
Subtitle A--Extensions
SEC. 301. ALLOWANCE OF NONREFUNDABLE PERSONAL CREDITS AGAINST
REGULAR AND MINIMUM TAX LIABILITY.
(a) In General.--Paragraph (2) of section 26(a) is
amended--
(1) by striking ``rule for 2000 and 2001.--'' and inserting
``rule for 2000, 2001, 2002, and 2003.--'', and
(2) by striking ``during 2000 or 2001,'' and inserting
``during 2000, 2001, 2002, or 2003,''.
(b) Conforming Amendments.--
(1) Section 904(h) is amended by striking ``during 2000 or
2001'' and inserting ``during 2000, 2001, 2002, or 2003''.
(2) The amendments made by sections 201(b), 202(f), and
618(b) of the Economic Growth and Tax Relief Reconciliation
Act of 2001 shall not apply to taxable years beginning during
2002 and 2003.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2001.
[[Page H10830]]
SEC. 302. CREDIT FOR QUALIFIED ELECTRIC VEHICLES.
(a) In General.--Section 30 is amended--
(1) in subsection (b)(2)--
(A) by striking ``December 31, 2001,'' and inserting
``December 31, 2003,'', and
(B) in subparagraphs (A), (B), and (C), by striking
``2002'', ``2003'', and ``2004'', respectively, and inserting
``2004'', ``2005'', and ``2006'', respectively, and
(2) in subsection (e), by striking ``December 31, 2004''
and inserting ``December 31, 2006''.
(b) Conforming Amendments.--
(1) Subparagraph (C) of section 280F(a)(1) is amended by
adding at the end the following new clause
``(iii) Application of subparagraph.--This subparagraph
shall apply to property placed in service after August 5,
1997, and before January 1, 2007.''
(2) Subsection (b) of section 971 of the Taxpayer Relief
Act of 1997 is amended by striking ``and before January 1,
2005''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 303. CREDIT FOR ELECTRICITY PRODUCED FROM RENEWABLE
RESOURCES.
(a) In General.--Subparagraphs (A), (B), and (C) of section
45(c)(3) are each amended by striking ``2002'' and inserting
``2004''.
(b) Effective Date.--The amendments made by subsection (a)
shall take effect on the date of the enactment of this Act.
SEC. 304. WORK OPPORTUNITY CREDIT.
(a) In General.--Subparagraph (B) of section 51(c)(4) is
amended by striking ``2001'' and inserting ``2003''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to individuals who begin work for the employer
after December 31, 2001.
SEC. 305. WELFARE-TO-WORK CREDIT.
(a) In General.--Subsection (f) of section 51A is amended
by striking ``2001'' and inserting ``2003''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to individuals who begin work for the employer
after December 31, 2001.
SEC. 306. DEDUCTION FOR CLEAN-FUEL VEHICLES AND CERTAIN
REFUELING PROPERTY.
(a) In General.--Section 179A is amended--
(1) in subsection (b)(1)(B)--
(A) by striking ``December 31, 2001,'' and inserting
``December 31, 2003,'', and
(B) in clauses (i), (ii), and (iii), by striking ``2002'',
``2003'', and ``2004'', respectively, and inserting ``2004'',
``2005'', and ``2006'', respectively, and
(2) in subsection (f), by striking ``December 31, 2004''
and inserting ``December 31, 2006''.
(b) Effective Date.--The amendments made by subsection (a)
shall take effect on the date of the enactment of this Act.
SEC. 307. TAXABLE INCOME LIMIT ON PERCENTAGE DEPLETION FOR
OIL AND NATURAL GAS PRODUCED FROM MARGINAL
PROPERTIES.
(a) In General.--Subparagraph (H) of section 613A(c)(6) is
amended by striking ``2002'' and inserting ``2004''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to taxable years beginning after December 31,
2001.
SEC. 308. QUALIFIED ZONE ACADEMY BONDS.
(a) In General.--Paragraph (1) of section 1397E(e) is
amended by striking ``2000, and 2001'' and inserting ``2000,
2001, 2002, and 2003''.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect on the date of the enactment of this Act.
SEC. 309. COVER OVER OF TAX ON DISTILLED SPIRITS.
(a) In General.--Paragraph (1) of section 7652(f) is
amended by striking ``January 1, 2002'' and inserting
``January 1, 2004''.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect on the date of the enactment of this Act.
SEC. 310. PARITY IN THE APPLICATION OF CERTAIN LIMITS TO
MENTAL HEALTH BENEFITS.
(a) In General.--Subsection (f) of section 9812, as amended
by the Departments of Labor, Health and Human Services, and
Education, and Related Agencies Appropriations Act, 2002, is
amended to read as follows:
``(f) Application of Section.--This section shall not apply
to benefits for services furnished--
``(1) on or after September 30, 2001, and before January 1,
2002, and
``(2) after December 31, 2003.''
(b) Effective Date.--The amendment made by subsection (a)
shall apply to plan years beginning after December 31, 2000.
SEC. 311. TEMPORARY SPECIAL RULES FOR TAXATION OF LIFE
INSURANCE COMPANIES.
(a) Reduction in Mutual Life Insurance Company Deductions
Not To Apply in Certain Years.--Section 809 (relating to
reduction in certain deductions of material life insurance
companies) is amended by adding at the end the following:
``(j) Differential Earnings Rate Treated as Zero for
Certain Years.--Notwithstanding subsection (c) or (f), the
differential earnings rate shall be treated as zero for
purposes of computing both the differential earnings amount
and the recomputed differential earnings amount for a mutual
life insurance company's taxable years beginning in 2001,
2002, or 2003.''
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2000.
SEC. 312. AVAILABILITY OF MEDICAL SAVINGS ACCOUNTS.
(a) In General.--Paragraphs (2) and (3)(B) of section
220(i) (defining cut-off year) are each amended by striking
``2002'' each place it appears and inserting ``2003''.
(b) Conforming Amendments.--
(1) Paragraph (2) of section 220(j) is amended by striking
``1998, 1999, or 2001'' each place it appears and inserting
``1998, 1999, 2001, or 2002''.
(2) Subparagraph (A) of section 220(j)(4) is amended by
striking ``and 2001'' and inserting ``2001, and 2002''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 313. INCENTIVES FOR INDIAN EMPLOYMENT AND PROPERTY ON
INDIAN RESERVATIONS.
(a) Employment.--Subsection (f) of section 45A is amended
by striking ``December 31, 2003'' and inserting ``December
31, 2004''.
(b) Property.--Paragraph (8) of section 168(j) is amended
by striking ``December 31, 2003'' and inserting ``December
31, 2004''.
SEC. 314. SUBPART F EXEMPTION FOR ACTIVE FINANCING.
(a) In General.--
(1) Section 953(e)(10) is amended--
(A) by striking ``January 1, 2002'' and inserting ``January
1, 2007'', and
(B) by striking ``December 31, 2001'' and inserting
``December 31, 2006''.
(2) Section 954(h)(9) is amended by striking ``January 1,
2002'' and inserting ``January 1, 2007''.
(b) Life Insurance and Annuity Contracts.--
(1) In general.--Subparagraph (B) of section 954(i)(4) is
amended to read as follows:
``(B) Life insurance and annuity contracts.--
``(i) In general.--Except as provided in clause (ii), the
amount of the reserve of a qualifying insurance company or
qualifying insurance company branch for any life insurance or
annuity contract shall be equal to the greater of--
``(I) the net surrender value of such contract (as defined
in section 807(e)(1)(A)), or
``(II) the reserve determined under paragraph (5).
``(ii) Ruling request, etc.--The amount of the reserve
under clause (i) shall be the foreign statement reserve for
the contract (less any catastrophe, deficiency, equalization,
or similar reserves), if, pursuant to a ruling request
submitted by the taxpayer or as provided in published
guidance, the Secretary determines that the factors taken
into account in determining the foreign statement reserve
provide an appropriate means of measuring income.''
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2001.
SEC. 315. REPEAL OF REQUIREMENT FOR APPROVED DIESEL OR
KEROSENE TERMINALS.
(a) In General.--Subsection (e) of section 4101 is hereby
repealed.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect on January 1, 2002.
Subtitle B--Temporary Assistance for Needy Families
SEC. 321. REAUTHORIZATION OF TANF SUPPLEMENTAL GRANTS FOR
POPULATION INCREASES FOR FISCAL YEAR 2002.
Section 403(a)(3) of the Social Security Act (42 U.S.C.
603(a)(3)) is amended by adding at the end the following:
``(H) Reauthorization of grants for fiscal year 2002.--
Notwithstanding any other provision of this paragraph--
``(i) any State that was a qualifying State under this
paragraph for fiscal year 2001 or any prior fiscal year shall
be entitled to receive from the Secretary for fiscal year
2002 a grant in an amount equal to the amount required to be
paid to the State under this paragraph for the most recent
fiscal year in which the State was a qualifying State;
``(ii) subparagraph (G) shall be applied as if `2002' were
substituted for `2001'; and
``(iii) out of any money in the Treasury of the United
States not otherwise appropriated, there are appropriated for
fiscal year 2002 such sums as are necessary for grants under
this subparagraph.''.
SEC. 322. 1-YEAR EXTENSION OF CONTINGENCY FUND UNDER THE TANF
PROGRAM.
Section 403(b) of the Social Security Act (42 U.S.C.
603(b)) is amended--
(1) in paragraph (2), by striking ``and 2001'' and
inserting ``2001, and 2002''; and
(2) in paragraph (3)(C)(ii), by striking ``2001'' and
inserting ``2002''.
TITLE IV--TAX BENEFITS FOR AREA OF NEW YORK CITY DAMAGED IN TERRORIST
ATTACKS ON SEPTEMBER 11, 2001
SEC. 401. TAX BENEFITS FOR AREA OF NEW YORK CITY DAMAGED IN
TERRORIST ATTACKS ON SEPTEMBER 11, 2001.
(a) In General.--Chapter 1 is amended by adding at the end
the following new subchapter:
``Subchapter Y--New York Liberty Zone Benefits
``Sec. 1400L. Tax benefits for New York Liberty Zone.
``SEC. 1400L. TAX BENEFITS FOR NEW YORK LIBERTY ZONE.
``(a) Special Allowance for Certain Property Acquired After
September 10, 2001.--
``(1) Additional allowance.--In the case of any qualified
New York Liberty Zone property--
[[Page H10831]]
``(A) the depreciation deduction provided by section 167(a)
for the taxable year in which such property is placed in
service shall include an allowance equal to 30 percent of the
adjusted basis of such property, and
``(B) the adjusted basis of the qualified New York Liberty
Zone property shall be reduced by the amount of such
deduction before computing the amount otherwise allowable as
a depreciation deduction under this chapter for such taxable
year and any subsequent taxable year.
``(2) Qualified new york liberty zone property.--For
purposes of this subsection--
``(A) In general.--The term `qualified New York Liberty
Zone property' means property--
``(i)(I) to which section 168 applies (other than railroad
grading and tunnel bores), or
``(II) which is computer software (as defined in section
167(f)(1)(B)) for which a deduction is allowable under
section 167(a) without regard to this subsection,
``(ii) substantially all of the use of which is in the New
York Liberty Zone and is in the active conduct of a trade or
business by the taxpayer in such Zone,
``(iii) the original use of which in the New York Liberty
Zone commences with the taxpayer after September 10, 2001,
``(iv) which is acquired by the taxpayer by purchase (as
defined in section 179(d)) after September 10, 2001, but only
if no written binding contract for the acquisition was in
effect before September 11, 2001, and
``(v) which is placed in service by the taxpayer on or
before the termination date.
The term `termination date' means December 31, 2006 (December
31, 2009, in the case of nonresidential real property and
residential rental property).
``(B) Exceptions.--
``(i) Alternative depreciation property.--The term
`qualified New York Liberty Zone property' shall not include
any property to which the alternative depreciation system
under section 168(g) applies, determined--
``(I) without regard to paragraph (7) of section 168(g)
(relating to election to have system apply), and
``(II) after application of section 280F(b) (relating to
listed property with limited business use).
``(ii) 30 percent additional allowance property.--Such term
shall not include property to which section 168(k) applies.
``(iii) Qualified leasehold improvement property.--Such
term shall not include any qualified leasehold improvement
property (as defined in section 168(e)(6)).
``(iv) Election out.--If a taxpayer makes an election under
this clause with respect to any class of property for any
taxable year, this subsection shall not apply to all property
in such class placed in service during such taxable year.
``(C) Special rules.--
``(i) Self-constructed property.--In the case of a taxpayer
manufacturing, constructing, or producing property for the
taxpayer's own use, the requirements of clause (iv) of
subparagraph (A) shall be treated as met if the taxpayer
begins manufacturing, constructing, or producing the property
after September 10, 2001, and before the termination date.
``(ii) Sale-leasebacks.--For purposes of subparagraph
(A)(iii), if property--
``(I) is originally placed in service after September 10,
2001, by a person, and
``(II) sold and leased back by such person within 3 months
after the date such property was originally placed in
service,
such property shall be treated as originally placed in
service not earlier than the date on which such property is
used under the leaseback referred to in subclause (II).
``(D) Allowance against alternative minimum tax.--The
deduction allowed by this subsection shall be allowed in
determining alternative minimum taxable income under section
55.
``(b) 5-Year Recovery Period for Depreciation of Certain
Leasehold Improvements.--
``(1) In general.--For purposes of section 168, the term
`5-year property' includes any qualified New York Liberty
Zone leasehold improvement property.
``(2) Qualified new york liberty zone leasehold improvement
property.--For purposes of this section, the term `qualified
New York Liberty Zone leasehold improvement property' means
qualified leasehold improvement property (as defined in
section 168(e)(6)) if--
``(A) such building is located in the New York Liberty
Zone,
``(B) such improvement is placed in service after September
10, 2001, and before January 1, 2007, and
``(C) no written binding contract for such improvement was
in effect before September 11, 2001.
``(3) Requirement to use straight line method.--The
applicable depreciation method under section 168 shall be the
straight line method in the case of qualified New York
Liberty Zone leasehold improvement property.
``(4) 9-year recovery period under alternative system.--For
purposes of section 168(g), the class life of qualified New
York Liberty Zone leasehold improvement property shall be 9
years.
``(c) Increase in Expensing Under Section 179.--
``(1) In general.--For purposes of section 179--
``(A) the limitation under section 179(b)(1) shall be
increased by the lesser of--
``(i) $35,000, or
``(ii) the cost of section 179 property which is qualified
New York Liberty Zone property placed in service during the
taxable year, and
``(B) the amount taken into account under section 179(b)(2)
with respect to any section 179 property which is qualified
New York Liberty Zone property shall be 50 percent of the
cost thereof.
``(2) Recapture.--Rules similar to the rules under section
179(d)(10) shall apply with respect to any qualified New York
Liberty Zone property which ceases to be used in the New York
Liberty Zone.
``(d) Tax-Exempt Bond Financing.--
``(1) In general.--For purposes of this title, any
qualified New York Liberty Bond shall be treated as an exempt
facility bond.
``(2) Qualified new york liberty bond.--For purposes of
this subsection, the term `qualified New York Liberty Bond'
means any bond issued as part of an issue if--
``(A) 95 percent or more of the net proceeds (as defined in
section 150(a)(3)) of such issue are to be used for qualified
project costs,
``(B) such bond is issued by the State of New York or any
political subdivision thereof,
``(C) the Governor of New York designates such bond for
purposes of this section, and
``(D) such bond is issued during calendar year 2002, 2003,
or 2004.
``(3) Limitation on amount of bonds designated.--
``(A) Aggregate amount designated.--The maximum aggregate
face amount of bonds which may be designated under this
subsection shall not exceed $15,000,000,000.
``(B) Specific limits.--For purposes of subparagraph (A),
the aggregate face amount of bonds issued which are to be
used for--
``(i) costs for property located outside the New York
Liberty Zone, shall not exceed $7,000,000,000,
``(ii) costs for residential rental property, shall not
exceed $3,000,000,000, and
``(iii) costs for property used for retail sales of
tangible property, shall not exceed $1,500,000,000.
``(C) Movable fixtures and equipment.--No bonds shall be
issued which are to be used for movable fixtures and
equipment.
``(4) Qualified project costs.--For purposes of this
subsection--
``(A) In general.--The term `qualified project costs' means
the cost of acquisition, construction, reconstruction, and
renovation of--
``(i) nonresidential real property and residential rental
property (including fixed tenant improvements associated with
such property) located in the New York Liberty Zone, and
``(ii) public utility property located in the New York
Liberty Zone.
``(B) Costs for certain property outside zone included.--
Such term includes the cost of acquisition, construction,
reconstruction, and renovation of nonresidential real
property (including fixed tenant improvements associated with
such property) located outside the New York Liberty Zone but
within the City of New York, New York, if such property is
part of a project which consists of at least 100,000 square
feet of usable office or other commercial space located in a
single building or multiple adjacent buildings.
``(5) Special rules.--In applying this title to any
qualified New York Liberty Bond, the following modifications
shall apply:
``(A) Section 146 (relating to volume cap) shall not apply.
``(B) Section 147(c) (relating to limitation on use for
land acquisition) shall be determined by reference to the
aggregate authorized face amount of all qualified New York
Liberty Bonds rather than the net proceeds of each issue.
``(C) Section 147(d) (relating to acquisition of existing
property not permitted) shall be applied by substituting `50
percent' for `15 percent' each place it appears.
``(D) Section 148(f)(4)(C) (relating to exception from
rebate for certain proceeds to be used to finance
construction expenditures) shall apply to available
construction proceeds of bonds issued under this section.
``(E) Financing provided by such a bond shall not be taken
into account under section 168(g)(5)(A) with respect to
property substantially all of the use of which is in the New
York Liberty Zone and is in the active conduct of a trade or
business by the taxpayer in such Zone.
``(F) Repayments of principal on financing provided by the
issue--
``(i) may not be used to provide financing, and
``(ii) must be used not later than the close of the 1st
semiannual period beginning after the date of the repayment
to redeem bonds which are part of such issue.
The requirement of clause (ii) shall be treated as met with
respect to amounts received within 10 years after the date of
issuance of the issue (or, in the case of refunding bond, the
date of issuance of the original bond) if such amounts are
used by the close of such 10 years to redeem bonds which are
part of such issue.
``(G) Section 57(a)(5) shall not apply.
``(6) Separate issue treatment of portions of an issue.--
This subsection shall not apply to the portion of an issue
which (if issued as a separate issue) would be treated as a
qualified bond or as a bond that is not a private activity
bond, if the issuer elects to so treat such portion.
[[Page H10832]]
``(e) Extension of Replacement Period for Nonrecognition of
Gain.--Notwithstanding subsections (g) and (h) of section
1033, clause (i) of section 1033(a)(2)(B) shall be applied by
substituting `5 years' for `2 years' with respect to property
which is compulsorily or involuntarily converted as a result
of the terrorist attacks on September 11, 2001, in the New
York Liberty Zone but only if substantially all of the use of
the replacement property is in the City of New York, New
York.
``(f) New York Liberty Zone.--For purposes of this section,
the term `New York Liberty Zone' means the area located on or
south of Canal Street, East Broadway (east of its
intersection with Canal Street), or Grand Street (east of its
intersection with East Broadway) in the Borough of Manhattan
in the City of New York, New York.''
(b) Clerical Amendment.--The table of subchapters for
chapter 1 is amended by adding at the end the following new
item:
``Subchapter Y. New York Liberty Zone Benefits.''
TITLE V--RELIEF PROVISIONS FOR VICTIMS OF TERRORIST ATTACKS,
PRESIDENTIALLY DECLARED DISASTERS, AND CERTAIN OTHER DISASTERS
Subtitle A--Relief Provisions for Victims of Terrorist Attacks
SEC. 501. INCOME TAXES OF VICTIMS OF TERRORIST ATTACKS.
(a) In General.--Section 692 (relating to income taxes of
members of Armed Forces on death) is amended by adding at the
end the following new subsection:
``(d) Individuals Dying as a Result of Certain Attacks.--
``(1) In general.--In the case of a specified terrorist
victim, any tax imposed by this chapter shall not apply--
``(A) with respect to the taxable year in which falls the
date of death, and
``(B) with respect to any prior taxable year in the period
beginning with the last taxable year ending before the
taxable year in which the wounds, injury, or illness referred
to in paragraph (3) were incurred.
``(2) $10,000 minimum benefit.--If, but for this paragraph,
the amount of tax not imposed by paragraph (1) with respect
to a specified terrorist victim is less than $10,000, then
such victim shall be treated as having made a payment against
the tax imposed by this chapter for such victim's last
taxable year in an amount equal to the excess of $10,000 over
the amount of tax not so imposed.
``(3) Taxation of certain benefits.--Subject to such rules
as the Secretary may prescribe, paragraph (1) shall not apply
to the amount of any tax imposed by this chapter which would
be computed by only taking into account the items of income,
gain, or other amounts attributable to--
``(A) deferred compensation which would have been payable
after death if the individual had died other than as a
specified terrorist victim, or
``(B) amounts payable in the taxable year which would not
have been payable in such taxable year but for an action
taken after September 11, 2001.
``(4) Specified terrorist victim.--For purposes of this
subsection, the term `specified terrorist victim' means any
decedent--
``(A) who dies as a result of wounds or injury incurred as
a result of the terrorist attacks against the United States
on April 19, 1995, or September 11, 2001, or
``(B) who dies as a result of illness incurred as a result
of an attack involving anthrax occurring on or after
September 11, 2001, and before January 1, 2002.
Such term shall not include any individual identified by the
Attorney General to have been a participant or conspirator in
any such attack or a representative of such an individual.''.
(b) Conforming Amendments.--
(1) Section 5(b)(1) is amended by inserting ``and victims
of certain terrorist attacks'' before ``on death''.
(2) Section 6013(f)(2)(B) is amended by inserting ``and
victims of certain terrorist attacks'' before ``on death''.
(c) Clerical Amendments.--
(1) The heading of section 692 is amended to read as
follows:
``SEC. 692. INCOME TAXES OF MEMBERS OF ARMED FORCES AND
VICTIMS OF CERTAIN TERRORIST ATTACKS ON
DEATH.''.
(2) The item relating to section 692 in the table of
sections for part II of subchapter J of chapter 1 is amended
to read as follows:
``Sec. 692. Income taxes of members of Armed Forces and victims of
certain terrorist attacks on death.''.
(d) Effective Date; Waiver of Limitations.--
(1) Effective date.--The amendments made by this section
shall apply to taxable years ending before, on, or after
September 11, 2001.
(2) Waiver of limitations.--If refund or credit of any
overpayment of tax resulting from the amendments made by this
section is prevented at any time before the close of the 1-
year period beginning on the date of the enactment of this
Act by the operation of any law or rule of law (including res
judicata), such refund or credit may nevertheless be made or
allowed if claim therefor is filed before the close of such
period.
SEC. 502. EXCLUSION OF CERTAIN DEATH BENEFITS.
(a) In General.--Section 101 (relating to certain death
benefits) is amended by adding at the end the following new
subsection:
``(i) Certain Employee Death Benefits Payable by Reason of
Death of Certain Terrorist Victims.--
``(1) In general.--Gross income does not include amounts
(whether in a single sum or otherwise) paid by an employer by
reason of the death of an employee who is a specified
terrorist victim (as defined in section 692(d)(4)).
``(2) Limitation.--
``(A) In general.--Subject to such rules as the Secretary
may prescribe, paragraph (1) shall not apply to amounts which
would have been payable after death if the individual had
died other than as a specified terrorist victim (as so
defined).
``(B) Exception.--Subparagraph (A) shall not apply to
incidental death benefits paid from a plan described in
section 401(a) and exempt from tax under section 501(a).
``(3) Treatment of self-employed individuals.--For purposes
of paragraph (1), the term `employee' includes a self-
employed individual (as defined in section 401(c)(1)).''.
(b) Effective Date; Waiver of Limitations.--
(1) Effective date.--The amendment made by this section
shall apply to taxable years ending before, on, or after
September 11, 2001.
(2) Waiver of limitations.--If refund or credit of any
overpayment of tax resulting from the amendments made by this
section is prevented at any time before the close of the 1-
year period beginning on the date of the enactment of this
Act by the operation of any law or rule of law (including res
judicata), such refund or credit may nevertheless be made or
allowed if claim therefor is filed before the close of such
period.
SEC. 503. ESTATE TAX REDUCTION.
(a) In General.--Section 2201 is amended to read as
follows:
``SEC. 2201. COMBAT ZONE-RELATED DEATHS OF MEMBERS OF THE
ARMED FORCES AND DEATHS OF VICTIMS OF CERTAIN
TERRORIST ATTACKS.
``(a) In General.--Unless the executor elects not to have
this section apply, in applying sections 2001 and 2101 to the
estate of a qualified decedent, the rate schedule set forth
in subsection (c) shall be deemed to be the rate schedule set
forth in section 2001(c).
``(b) Qualified Decedent.--For purposes of this section,
the term `qualified decedent' means--
``(1) any citizen or resident of the United States dying
while in active service of the Armed Forces of the United
States, if such decedent--
``(A) was killed in action while serving in a combat zone,
as determined under section 112(c), or
``(B) died as a result of wounds, disease, or injury
suffered while serving in a combat zone (as determined under
section 112(c)), and while in the line of duty, by reason of
a hazard to which such decedent was subjected as an incident
of such service, and
``(2) any specified terrorist victim (as defined in section
692(d)(4)).
``(c) Rate Schedule.--
``If the amount with respect to which the tentative tax to be computed
The tentative tax is:
1 percent of the amount by which such amount exceeds $100,000..........
$500 plus 2 percent of the excess over $150,000........................
$1,500 plus 3 percent of the excess over $200,000......................
$4,500 plus 4 percent of the excess over $300,000......................
$12,500 plus 5 percent of the excess over $500,000.....................
$22,500 plus 6 percent of the excess over $700,000.....................
$34,500 plus 7 percent of the excess over $900,000.....................
$48,500 plus 8 percent of the excess over $1,100,000...................
$88,500 plus 9 percent of the excess over $1,600,000...................
$133,500 plus 10 percent of the excess over $2,100,000.................
$183,500 plus 11 percent of the excess over $2,600,000.................
$238,500 plus 12 percent of the excess over $3,100,000.................
$298,500 plus 13 percent of the excess over $3,600,000.................
$363,500 plus 14 percent of the excess over $4,100,000.................
$503,500 plus 15 percent of the excess over $5,100,000.................
$653,500 plus 16 percent of the excess over $6,100,000.................
$813,500 plus 17 percent of the excess over $7,100,000.................
$983,500 plus 18 percent of the excess over $8,100,000.................
$1,163,500 plus 19 percent of the excess over $9,100,000...............
$1,353,500 plus 20 percent of the excess over $10,100,000..............
``(d) Determination of Unified Credit.--In the case of an
estate to which this section applies, subsection (a) shall
not apply in determining the credit under section 2010.''.
(b) Conforming Amendments.--
(1) Section 2011 is amended by striking subsection (d) and
by redesignating subsections (e), (f), and (g) as subsections
(d), (e), and (f), respectively.
[[Page H10833]]
(2) Section 2053(d)(3)(B) is amended by striking ``section
2011(e)'' and inserting ``section 2011(d)''.
(3) Paragraph (9) of section 532(c) of the Economic Growth
and Tax Relief Reconciliation Act of 2001 is repealed.
(c) Clerical Amendment.--The item relating to section 2201
in the table of sections for subchapter C of chapter 11 is
amended to read as follows:
``Sec. 2201. Combat zone-related deaths of members of the Armed Forces
and deaths of victims of certain terrorist attacks.''.
(d) Effective Date; Waiver of Limitations.--
(1) Effective date.--The amendments made by this section
shall apply to estates of decedents--
(A) dying on or after September 11, 2001, and
(B) in the case of individuals dying as a result of the
April 19, 1995, terrorist attack, dying on or after April 19,
1995.
(2) Waiver of limitations.--If refund or credit of any
overpayment of tax resulting from the amendments made by this
section is prevented at any time before the close of the 1-
year period beginning on the date of the enactment of this
Act by the operation of any law or rule of law (including res
judicata), such refund or credit may nevertheless be made or
allowed if claim therefor is filed before the close of such
period.
SEC. 504. PAYMENTS BY CHARITABLE ORGANIZATIONS TREATED AS
EXEMPT PAYMENTS.
(a) In General.--For purposes of the Internal Revenue Code
of 1986--
(1) payments made by an organization described in section
501(c)(3) of such Code by reason of the death, injury,
wounding, or illness of an individual incurred as the result
of the terrorist attacks against the United States on
September 11, 2001, or an attack involving anthrax occurring
on or after September 11, 2001, and before January 1, 2002,
shall be treated as related to the purpose or function
constituting the basis for such organization's exemption
under section 501 of such Code if such payments are made in
good faith using a reasonable and objective formula which is
consistently applied, and
(2) in the case of a private foundation (as defined in
section 509 of such Code), any payment described in paragraph
(1) shall not be treated as made to a disqualified person for
purposes of section 4941 of such Code.
(b) Effective Date.--This section shall apply to payments
made on or after September 11, 2001.
SEC. 505. EXCLUSION OF CERTAIN CANCELLATIONS OF INDEBTEDNESS.
(a) In General.--For purposes of the Internal Revenue Code
of 1986--
(1) gross income shall not include any amount which (but
for this section) would be includible in gross income by
reason of the discharge (in whole or in part) of indebtedness
of any taxpayer if the discharge is by reason of the death of
an individual incurred as the result of the terrorist attacks
against the United States on September 11, 2001, or as the
result of illness incurred as a result of an attack involving
anthrax occurring on or after September 11, 2001, and before
January 1, 2002, and
(2) return requirements under section 6050P of such Code
shall not apply to any discharge described in paragraph (1).
(b) Effective Date.--This section shall apply to discharges
made on or after September 11, 2001, and before January 1,
2002.
Subtitle B--Other Relief Provisions
SEC. 511. EXCLUSION FOR DISASTER RELIEF PAYMENTS.
(a) In General.--Part III of subchapter B of chapter 1
(relating to items specifically excluded from gross income)
is amended by redesignating section 139 as section 140 and
inserting after section 138 the following new section:
``SEC. 139. DISASTER RELIEF PAYMENTS.
``(a) General Rule.--Gross income shall not include any
amount received by an individual as a qualified disaster
relief payment.
``(b) Qualified Disaster Relief Payment Defined.--For
purposes of this section, the term `qualified disaster relief
payment' means any amount paid to or for the benefit of an
individual--
``(1) to reimburse or pay reasonable and necessary
personal, family, living, or funeral expenses incurred as a
result of a qualified disaster,
``(2) to reimburse or pay reasonable and necessary expenses
incurred for the repair or rehabilitation of a personal
residence or repair or replacement of its contents to the
extent that the need for such repair, rehabilitation, or
replacement is attributable to a qualified disaster,
``(3) by a person engaged in the furnishing or sale of
transportation as a common carrier by reason of the death or
personal physical injuries incurred as a result of a
qualified disaster, or
``(4) if such amount is paid by a Federal, State, or local
government, or agency or instrumentality thereof, in
connection with a qualified disaster in order to promote the
general welfare,
but only to the extent any expense compensated by such
payment is not otherwise compensated for by insurance or
otherwise.
``(c) Qualified Disaster Defined.--For purposes of this
section, the term `qualified disaster' means--
``(1) a disaster which results from a terroristic or
military action (as defined in section 692(c)(2)),
``(2) a Presidentially declared disaster (as defined in
section 1033(h)(3)),
``(3) a disaster which results from an accident involving a
common carrier, or from any other event, which is determined
by the Secretary to be of a catastrophic nature, or
``(4) with respect to amounts described in subsection
(b)(4), a disaster which is determined by an applicable
Federal, State, or local authority (as determined by the
Secretary) to warrant assistance from the Federal, State, or
local government or agency or instrumentality thereof.
``(d) Coordination With Employment Taxes.--For purposes of
chapter 2 and subtitle C, a qualified disaster relief payment
shall not be treated as net earnings from self-employment,
wages, or compensation subject to tax.
``(e) No Relief for Certain Individuals.--Subsections (a)
and (f) shall not apply with respect to any individual
identified by the Attorney General to have been a participant
or conspirator in a terroristic action (as so defined), or a
representative of such individual.
``(f) Exclusion of Certain Additional Payments.--Gross
income shall not include any amount received as payment under
section 406 of the Air Transportation Safety and System
Stabilization Act.''
(b) Conforming Amendments.--The table of sections for part
III of subchapter B of chapter 1 is amended by striking the
item relating to section 139 and inserting the following new
items:
``Sec. 139. Disaster relief payments.
``Sec. 140. Cross references to other Acts.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years ending on or after September 11,
2001.
SEC. 512. AUTHORITY TO POSTPONE CERTAIN DEADLINES AND
REQUIRED ACTIONS.
(a) Expansion of Authority Relating to Disasters and
Terroristic or Military Actions.--Section 7508A is amended to
read as follows:
``SEC. 7508A. AUTHORITY TO POSTPONE CERTAIN DEADLINES BY
REASON OF PRESIDENTIALLY DECLARED DISASTER OR
TERRORISTIC OR MILITARY ACTIONS.
``(a) In General.--In the case of a taxpayer determined by
the Secretary to be affected by a Presidentially declared
disaster (as defined in section 1033(h)(3)) or a terroristic
or military action (as defined in section 692(c)(2)), the
Secretary may specify a period of up to one year that may be
disregarded in determining, under the internal revenue laws,
in respect of any tax liability of such taxpayer--
``(1) whether any of the acts described in paragraph (1) of
section 7508(a) were performed within the time prescribed
therefor (determined without regard to extension under any
other provision of this subtitle for periods after the date
(determined by the Secretary) of such disaster or action),
``(2) the amount of any interest, penalty, additional
amount, or addition to the tax for periods after such date,
and
``(3) the amount of any credit or refund.
``(b) Special Rules Regarding Pensions, Etc.--In the case
of a pension or other employee benefit plan, or any sponsor,
administrator, participant, beneficiary, or other person with
respect to such plan, affected by a disaster or action
described in subsection (a), the Secretary may specify a
period of up to one year which may be disregarded in
determining the date by which any action is required or
permitted to be completed under this title. No plan shall be
treated as failing to be operated in accordance with the
terms of the plan solely as the result of disregarding any
period by reason of the preceding sentence.
``(c) Special Rules for Overpayments.--The rules of section
7508(b) shall apply for purposes of this section.''.
(b) Clarification of Scope of Acts Secretary May
Postpone.--Section 7508(a)(1)(K) (relating to time to be
disregarded) is amended by striking ``in regulations
prescribed under this section''.
(c) Conforming Amendments to ERISA.--
(1) Part 5 of subtitle B of title I of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1131 et
seq.) is amended by adding at the end the following new
section:
``SEC. 518. AUTHORITY TO POSTPONE CERTAIN DEADLINES BY REASON
OF PRESIDENTIALLY DECLARED DISASTER OR
TERRORISTIC OR MILITARY ACTIONS.
``In the case of a pension or other employee benefit plan,
or any sponsor, administrator, participant, beneficiary, or
other person with respect to such plan, affected by a
Presidentially declared disaster (as defined in section
1033(h)(3) of the Internal Revenue Code of 1986) or a
terroristic or military action (as defined in section
692(c)(2) of such Code), the Secretary may, notwithstanding
any other provision of law, prescribe, by notice or
otherwise, a period of up to one year which may be
disregarded in determining the date by which any action is
required or permitted to be completed under this Act. No plan
shall be treated as failing to be operated in accordance with
the terms of the plan solely as the result of disregarding
any period by reason of the preceding sentence.''.
(2) Section 4002 of Employee Retirement Income Security Act
of 1974 (29 U.S.C. 1302) is amended by adding at the end the
following new subsection:
``(i) Special Rules Regarding Disasters, Etc.--In the case
of a pension or other employee benefit plan, or any sponsor,
administrator, participant, beneficiary, or other person with
respect to such plan, affected by a
[[Page H10834]]
Presidentially declared disaster (as defined in section
1033(h)(3) of the Internal Revenue Code of 1986) or a
terroristic or military action (as defined in section
692(c)(2) of such Code), the corporation may, notwithstanding
any other provision of law, prescribe, by notice or
otherwise, a period of up to one year which may be
disregarded in determining the date by which any action is
required or permitted to be completed under this Act. No plan
shall be treated as failing to be operated in accordance with
the terms of the plan solely as the result of disregarding
any period by reason of the preceding sentence.''.
(d) Additional Conforming Amendments.--
(1) Section 6404 is amended--
(A) by striking subsection (h),
(B) by redesignating subsection (i) as subsection (h), and
(C) by adding at the end the following new subsection:
``(i) Cross Reference.--
``For authority to suspend running of interest, etc. by reason of
Presidentially declared disaster or terroristic or military action, see
section 7508A.''.
(2) Section 6081(c) is amended to read as follows:
``(c) Cross References.--
``For time for performing certain acts postponed by reason of war,
see section 7508, and by reason of Presidentially declared disaster or
terroristic or military action, see section 7508A.''.
(3) Section 6161(d) is amended by adding at the end the
following new paragraph:
``(3) Postponement of certain acts.--
``For time for performing certain acts postponed by reason of war,
see section 7508, and by reason of Presidentially declared disaster or
terroristic or military action, see section 7508A.''.
(d) Clerical Amendments.--
(1) The item relating to section 7508A in the table of
sections for chapter 77 is amended to read as follows:
``Sec. 7508A. Authority to postpone certain deadlines by reason of
Presidentially declared disaster or terroristic or
military actions.''.
(2) The table of contents for the Employee Retirement
Income Security Act of 1974 is amended by inserting after the
item relating to section 517 the following new item:
``Sec. 518. Authority to postpone certain deadlines by reason of
Presidentially declared disaster or terroristic or
military actions.''.
(e) Effective Date.--The amendments made by this section
shall apply to disasters and terroristic or military actions
occurring on or after September 11, 2001, with respect to any
action of the Secretary of the Treasury, the Secretary of
Labor, or the Pension Benefit Guaranty Corporation occurring
on or after the date of the enactment of this Act.
SEC. 513. APPLICATION OF CERTAIN PROVISIONS TO TERRORISTIC OR
MILITARY ACTIONS.
(a) Disability Income.--Section 104(a)(5) (relating to
compensation for injuries or sickness) is amended by striking
``a violent attack'' and all that follows through the period
and inserting ``a terroristic or military action (as defined
in section 692(c)(2)).''.
(b) Exemption From Income Tax for Certain Military or
Civilian Employees.--Section 692(c) is amended--
(1) by striking ``outside the United States'' in paragraph
(1), and
(2) by striking ``Sustained Overseas'' in the heading.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years ending on or after September 11,
2001.
SEC. 514. CLARIFICATION OF DUE DATE FOR AIRLINE EXCISE TAX
DEPOSITS.
(a) In General.--Paragraph (3) of section 301(a) of the Air
Transportation Safety and System Stabilization Act (Public
Law 107-42) is amended to read as follows:
``(3) Airline-related deposit.--For purposes of this
subsection, the term `airline-related deposit' means any
deposit of taxes imposed by subchapter C of chapter 33 of
such Code (relating to transportation by air).''.
(b) Effective Date.--The amendment made by this section
shall take effect as if included in section 301 of the Air
Transportation Safety and System Stabilization Act (Public
Law 107-42).
SEC. 515. TREATMENT OF CERTAIN STRUCTURED SETTLEMENT
PAYMENTS.
(a) In General.--Subtitle E is amended by adding at the end
the following new chapter:
``CHAPTER 55--STRUCTURED SETTLEMENT FACTORING TRANSACTIONS
``Sec. 5891. Structured settlement factoring transactions.
``SEC. 5891. STRUCTURED SETTLEMENT FACTORING TRANSACTIONS.
``(a) Imposition of Tax.--There is hereby imposed on any
person who acquires directly or indirectly structured
settlement payment rights in a structured settlement
factoring transaction a tax equal to 40 percent of the
factoring discount as determined under subsection (c)(4) with
respect to such factoring transaction.
``(b) Exception for Certain Approved Transactions.--
``(1) In general.--The tax under subsection (a) shall not
apply in the case of a structured settlement factoring
transaction in which the transfer of structured settlement
payment rights is approved in advance in a qualified order.
``(2) Qualified order.--For purposes of this section, the
term `qualified order' means a final order, judgment, or
decree which--
``(A) finds that the transfer described in paragraph (1)--
``(i) does not contravene any Federal or State statute or
the order of any court or responsible administrative
authority, and
``(ii) is in the best interest of the payee, taking into
account the welfare and support of the payee's dependents,
and
``(B) is issued--
``(i) under the authority of an applicable State statute by
an applicable State court, or
``(ii) by the responsible administrative authority (if any)
which has exclusive jurisdiction over the underlying action
or proceeding which was resolved by means of the structured
settlement.
``(3) Applicable state statute.--For purposes of this
section, the term `applicable State statute' means a statute
providing for the entry of an order, judgment, or decree
described in paragraph (2)(A) which is enacted by--
``(A) the State in which the payee of the structured
settlement is domiciled, or
``(B) if there is no statute described in subparagraph (A),
the State in which either the party to the structured
settlement (including an assignee under a qualified
assignment under section 130) or the person issuing the
funding asset for the structured settlement is domiciled or
has its principal place of business.
``(4) Applicable state court.--For purposes of this
section--
``(A) In general.--The term `applicable State court' means,
with respect to any applicable State statute, a court of the
State which enacted such statute.
``(B) Special rule.--In the case of an applicable State
statute described in paragraph (3)(B), such term also
includes a court of the State in which the payee of the
structured settlement is domiciled.
``(5) Qualified order dispositive.--A qualified order shall
be treated as dispositive for purposes of the exception under
this subsection.
``(c) Definitions.--For purposes of this section--
``(1) Structured settlement.--The term `structured
settlement' means an arrangement--
``(A) which is established by--
``(i) suit or agreement for the periodic payment of damages
excludable from the gross income of the recipient under
section 104(a)(2), or
``(ii) agreement for the periodic payment of compensation
under any workers' compensation law excludable from the gross
income of the recipient under section 104(a)(1), and
``(B) under which the periodic payments are--
``(i) of the character described in subparagraphs (A) and
(B) of section 130(c)(2), and
``(ii) payable by a person who is a party to the suit or
agreement or to the workers' compensation claim or by a
person who has assumed the liability for such periodic
payments under a qualified assignment in accordance with
section 130.
``(2) Structured settlement payment rights.--The term
`structured settlement payment rights' means rights to
receive payments under a structured settlement.
``(3) Structured settlement factoring transaction.--
``(A) In general.--The term `structured settlement
factoring transaction' means a transfer of structured
settlement payment rights (including portions of structured
settlement payments) made for consideration by means of sale,
assignment, pledge, or other form of encumbrance or
alienation for consideration.
``(B) Exception.--Such term shall not include--
``(i) the creation or perfection of a security interest in
structured settlement payment rights under a blanket security
agreement entered into with an insured depository institution
in the absence of any action to redirect the structured
settlement payments to such institution (or agent or
successor thereof) or otherwise to enforce such blanket
security interest as against the structured settlement
payment rights, or
``(ii) a subsequent transfer of structured settlement
payment rights acquired in a structured settlement factoring
transaction.
``(4) Factoring discount.--The term `factoring discount'
means an amount equal to the excess of--
``(A) the aggregate undiscounted amount of structured
settlement payments being acquired in the structured
settlement factoring transaction, over
``(B) the total amount actually paid by the acquirer to the
person from whom such structured settlement payments are
acquired.
``(5) Responsible administrative authority.--The term
`responsible administrative authority' means the
administrative authority which had jurisdiction over the
underlying action or proceeding which was resolved by means
of the structured settlement.
``(6) State.--The term `State' includes the Commonwealth of
Puerto Rico and any possession of the United States.
``(d) Coordination With Other Provisions.--
``(1) In general.--If the applicable requirements of
sections 72, 104(a)(1), 104(a)(2), 130, and 461(h) were
satisfied at the time the
[[Page H10835]]
structured settlement involving structured settlement payment
rights was entered into, the subsequent occurrence of a
structured settlement factoring transaction shall not affect
the application of the provisions of such sections to the
parties to the structured settlement (including an assignee
under a qualified assignment under section 130) in any
taxable year.
``(2) No withholding of tax.--The provisions of section
3405 regarding withholding of tax shall not apply to the
person making the payments in the event of a structured
settlement factoring transaction.''.
(b) Clerical Amendment.--The table of chapters for subtitle
E is amended by adding at the end the following new item:
``Chapter 55. Structured settlement factoring transactions.''.
(c) Effective Dates.--
(1) In general.--The amendments made by this section (other
than the provisions of section 5891(d) of the Internal
Revenue Code of 1986, as added by this section) shall apply
to structured settlement factoring transactions (as defined
in section 5891(c) of such Code (as so added)) entered into
on or after the 30th day following the date of the enactment
of this Act.
(2) Clarification of existing law.--Section 5891(d) of such
Code (as so added) shall apply to structured settlement
factoring transactions (as defined in section 5891(c) of such
Code (as so added)) entered into before, on, or after such
30th day.
(3) Transition rule.--In the case of a structured
settlement factoring transaction entered into during the
period beginning on the 30th day following the date of the
enactment of this Act and ending on July 1, 2002, no tax
shall be imposed under section 5891(a) of such Code if--
(A) the structured settlement payee is domiciled in a State
(or possession of the United States) which has not enacted a
statute providing that the structured settlement factoring
transaction is ineffective unless the transaction has been
approved by an order, judgment, or decree of a court (or
where applicable, a responsible administrative authority)
which finds that such transaction--
(i) does not contravene any Federal or State statute or the
order of any court (or responsible administrative authority),
and
(ii) is in the best interest of the structured settlement
payee or is appropriate in light of a hardship faced by the
payee, and
(B) the person acquiring the structured settlement payment
rights discloses to the structured settlement payee in
advance of the structured settlement factoring transaction
the amounts and due dates of the payments to be transferred,
the aggregate amount to be transferred, the consideration to
be received by the structured settlement payee for the
transferred payments, the discounted present value of the
transferred payments (including the present value as
determined in the manner described in section 7520 of such
Code), and the expenses required under the terms of the
structured settlement factoring transaction to be paid by the
structured settlement payee or deducted from the proceeds of
such transaction.
SEC. 516. PERSONAL EXEMPTION DEDUCTION FOR CERTAIN DISABILITY
TRUSTS.
(a) In General.--Subsection (b) of section 642 (relating to
deduction for personal exemption) is amended to read as
follows:
``(b) Deduction for Personal Exemption.--
``(1) Estates.--An estate shall be allowed a deduction of
$600.
``(2) Trusts.--
``(A) In general.--Except as otherwise provided in this
paragraph, a trust shall be allowed a deduction of $100.
``(B) Trusts distributing income currently.--A trust which,
under its governing instrument, is required to distribute all
of its income currently shall be allowed a deduction of $300.
``(C) Disability trusts.--
``(i) In general.--A qualified disability trust shall be
allowed a deduction equal to the exemption amount under
section 151(d), determined--
``(I) by treating such trust as an individual described in
section 151(d)(3)(C)(iii), and
``(II) by applying section 67(e) (without the reference to
section 642(b)) for purposes of determining the adjusted
gross income of the trust.
``(ii) Qualified disability trust.--For purposes of clause
(i), the term `qualified disability trust' means any trust
if--
``(I) such trust is a disability trust described in
subsection (c)(2)(B)(iv) of section 1917 of the Social
Security Act (42 U.S.C. 1396p), and
``(II) all of the beneficiaries of the trust as of the
close of the taxable year are determined by the Commissioner
of Social Security to have been disabled (within the meaning
of section 1614(a)(3) of the Social Security Act, 42 U.S.C.
1382c(a)(3)) for some portion of such year.
A trust shall not fail to meet the requirements of subclause
(II) merely because the corpus of the trust may revert to a
person who is not so disabled after the trust ceases to have
any beneficiary who is so disabled.''
``(3) Deductions in lieu of personal exemption.--The
deductions allowed by this subsection shall be in lieu of the
deductions allowed under section 151 (relating to deduction
for personal exemption).''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years ending on or after September 11,
2001.
SEC. 517. DISCLOSURE OF TAX INFORMATION IN TERRORISM AND
NATIONAL SECURITY INVESTIGATIONS.
(a) Disclosure Without a Request of Information Relating to
Terrorist Activities, Etc.--Paragraph (3) of section 6103(i)
(relating to disclosure of return information to apprise
appropriate officials of criminal activities or emergency
circumstances) is amended by adding at the end the following
new subparagraph:
``(C) Terrorist activities, etc.--
``(i) In general.--Except as provided in paragraph (6), the
Secretary may disclose in writing return information (other
than taxpayer return information) that may be related to a
terrorist incident, threat, or activity to the extent
necessary to apprise the head of the appropriate Federal law
enforcement agency responsible for investigating or
responding to such terrorist incident, threat, or activity.
The head of the agency may disclose such return information
to officers and employees of such agency to the extent
necessary to investigate or respond to such terrorist
incident, threat, or activity.
``(ii) Disclosure to the department of justice.--Returns
and taxpayer return information may also be disclosed to the
Attorney General under clause (i) to the extent necessary
for, and solely for use in preparing, an application under
paragraph (7)(D).
``(iii) Taxpayer identity.--For purposes of this
subparagraph, a taxpayer's identity shall not be treated as
taxpayer return information.
``(iv) Termination.--No disclosure may be made under this
subparagraph after December 31, 2003.''.
(b) Disclosure Upon Request of Information Relating to
Terrorist Activities, Etc.--Subsection (i) of section 6103
(relating to disclosure to Federal officers or employees for
administration of Federal laws not relating to tax
administration) is amended by redesignating paragraph (7) as
paragraph (8) and by inserting after paragraph (6) the
following new paragraph:
``(7) Disclosure upon request of information relating to
terrorist activities, etc.--
``(A) Disclosure to law enforcement agencies.--
``(i) In general.--Except as provided in paragraph (6),
upon receipt by the Secretary of a written request which
meets the requirements of clause (iii), the Secretary may
disclose return information (other than taxpayer return
information) to officers and employees of any Federal law
enforcement agency who are personally and directly engaged in
the response to or investigation of any terrorist incident,
threat, or activity.
``(ii) Disclosure to state and local law enforcement
agencies.--The head of any Federal law enforcement agency may
disclose return information obtained under clause (i) to
officers and employees of any State or local law enforcement
agency but only if such agency is part of a team with the
Federal law enforcement agency in such response or
investigation and such information is disclosed only to
officers and employees who are personally and directly
engaged in such response or investigation.
``(iii) Requirements.--A request meets the requirements of
this clause if--
``(I) the request is made by the head of any Federal law
enforcement agency (or his delegate) involved in the response
to or investigation of any terrorist incident, threat, or
activity, and
``(II) the request sets forth the specific reason or
reasons why such disclosure may be relevant to a terrorist
incident, threat, or activity.
``(iv) Limitation on use of information.--Information
disclosed under this subparagraph shall be solely for the use
of the officers and employees to whom such information is
disclosed in such response or investigation.
``(B) Disclosure to intelligence agencies.--
``(i) In general.--Except as provided in paragraph (6),
upon receipt by the Secretary of a written request which
meets the requirements of clause (ii), the Secretary may
disclose return information (other than taxpayer return
information) to those officers and employees of the
Department of Justice, the Department of the Treasury, and
other Federal intelligence agencies who are personally and
directly engaged in the collection or analysis of
intelligence and counterintelligence information or
investigation concerning any terrorist incident, threat, or
activity. For purposes of the preceding sentence, the
information disclosed under the preceding sentence shall be
solely for the use of such officers and employees in such
investigation, collection, or analysis.
``(ii) Requirements.--A request meets the requirements of
this subparagraph if the request--
``(I) is made by an individual described in clause (iii),
and
``(II) sets forth the specific reason or reasons why such
disclosure may be relevant to a terrorist incident, threat,
or activity.
``(iii) Requesting individuals.--An individual described in
this subparagraph is an individual--
``(I) who is an officer or employee of the Department of
Justice or the Department of the Treasury who is appointed by
the President with the advice and consent of the Senate or
who is the Director of the United States Secret Service, and
[[Page H10836]]
``(II) who is responsible for the collection and analysis
of intelligence and counterintelligence information
concerning any terrorist incident, threat, or activity.
``(iv) Taxpayer identity.--For purposes of this
subparagraph, a taxpayer's identity shall not be treated as
taxpayer return information.
``(C) Disclosure under ex parte orders.--
``(i) In general.--Except as provided in paragraph (6), any
return or return information with respect to any specified
taxable period or periods shall, pursuant to and upon the
grant of an ex parte order by a Federal district court judge
or magistrate under clause (ii), be open (but only to the
extent necessary as provided in such order) to inspection by,
or disclosure to, officers and employees of any Federal law
enforcement agency or Federal intelligence agency who are
personally and directly engaged in any investigation,
response to, or analysis of intelligence and
counterintelligence information concerning any terrorist
incident, threat, or activity. Return or return information
opened to inspection or disclosure pursuant to the preceding
sentence shall be solely for the use of such officers and
employees in the investigation, response, or analysis, and in
any judicial, administrative, or grand jury proceedings,
pertaining to such terrorist incident, threat, or activity.
``(ii) Application for order.--The Attorney General, the
Deputy Attorney General, the Associate Attorney General, any
Assistant Attorney General, or any United States attorney may
authorize an application to a Federal district court judge or
magistrate for the order referred to in clause (i). Upon such
application, such judge or magistrate may grant such order if
he determines on the basis of the facts submitted by the
applicant that--
``(I) there is reasonable cause to believe, based upon
information believed to be reliable, that the return or
return information may be relevant to a matter relating to
such terrorist incident, threat, or activity, and
``(II) the return or return information is sought
exclusively for use in a Federal investigation, analysis, or
proceeding concerning any terrorist incident, threat, or
activity.
``(D) Special rule for ex parte disclosure by the irs.--
``(i) In general.--Except as provided in paragraph (6), the
Secretary may authorize an application to a Federal district
court judge or magistrate for the order referred to in
subparagraph (C)(i). Upon such application, such judge or
magistrate may grant such order if he determines on the basis
of the facts submitted by the applicant that the requirements
of subparagraph (C)(ii)(I) are met.
``(ii) Limitation on use of information.--Information
disclosed under clause (i)--
``(I) may be disclosed only to the extent necessary to
apprise the head of the appropriate Federal law enforcement
agency responsible for investigating or responding to a
terrorist incident, threat, or activity, and
``(II) shall be solely for use in a Federal investigation,
analysis, or proceeding concerning any terrorist incident,
threat, or activity.
The head of such Federal agency may disclose such information
to officers and employees of such agency to the extent
necessary to investigate or respond to such terrorist
incident, threat, or activity.
``(E) Termination.--No disclosure may be made under this
paragraph after December 31, 2003.''.
(c) Conforming Amendments.--
(1) Section 6103(a)(2) is amended by inserting ``any local
law enforcement agency receiving information under subsection
(i)(7)(A),'' after ``State,''.
(2) Section 6103(b) is amended by adding at the end the
following new paragraph:
``(11) Terrorist incident, threat, or activity.--The term
`terrorist incident, threat, or activity' means an incident,
threat, or activity involving an act of domestic terrorism
(as defined in section 2331(5) of title 18, United States
Code) or international terrorism (as defined in section
2331(1) of such title).''.
(3) The heading of section 6103(i)(3) is amended by
inserting ``or terrorist'' after ``criminal''.
(4) Paragraph (4) of section 6103(i) is amended--
(A) in subparagraph (A) by inserting ``or (7)(C)'' after
``paragraph (1)'', and
(B) in subparagraph (B) by striking ``or (3)(A)'' and
inserting ``(3)(A) or (C), or (7)''.
(5) Paragraph (6) of section 6103(i) is amended--
(A) by striking ``(3)(A)'' and inserting ``(3)(A) or (C)'',
and
(B) by striking ``or (7)'' and inserting ``(7), or (8)''.
(6) Section 6103(p)(3) is amended--
(A) in subparagraph (A) by striking ``(7)(A)(ii)'' and
inserting ``(8)(A)(ii)'', and
(B) in subparagraph (C) by striking ``(i)(3)(B)(i)'' and
inserting ``(i)(3)(B)(i) or (7)(A)(ii)''.
(7) Section 6103(p)(4) is amended--
(A) in the matter preceding subparagraph (A)--
(i) by striking ``or (5),'' the first place it appears and
inserting ``(5), or (7),'', and
(ii) by striking ``(i)(3)(B)(i),'' and inserting
``(i)(3)(B)(i) or (7)(A)(ii),'', and
(B) in subparagraph (F)(ii) by striking ``or (5),'' the
first place it appears and inserting ``(5) or (7),''.
(8) Section 6103(p)(6)(B)(i) is amended by striking
``(i)(7)(A)(ii)'' and inserting ``(i)(8)(A)(ii)''.
(9) Section 6105(b) is amended--
(A) by striking ``or'' at the end of paragraph (2),
(B) by striking ``paragraphs (1) or (2)'' in paragraph (3)
and inserting ``paragraph (1), (2), or (3)'',
(C) by redesignating paragraph (3) as paragraph (4), and
(D) by inserting after paragraph (2) the following new
paragraph:
``(3) to the disclosure of tax convention information on
the same terms as return information may be disclosed under
paragraph (3)(C) or (7) of section 6103(i), except that in
the case of tax convention information provided by a foreign
government, no disclosure may be made under this paragraph
without the written consent of the foreign government, or''.
(10) Section 7213(a)(2) is amended by striking
``(i)(3)(B)(i),'' and inserting ``(i)(3)(B)(i) or
(7)(A)(ii),''.
(d) Effective Date.--The amendments made by this section
shall apply to disclosures made on or after the date of the
enactment of this Act.
TITLE VI--MISCELLANEOUS AND TECHNICAL PROVISIONS
Subtitle A--General Miscellaneous Provisions
SEC. 601. ALLOWANCE OF ELECTRONIC 1099'S.
Any person required to furnish a statement under any
section of subpart B of part III of subchapter A of chapter
61 of the Internal Revenue Code of 1986 for any taxable year
ending after the date of the enactment of this Act, may
electronically furnish such statement (without regard to any
first class mailing requirement) to any recipient who has
consented to the electronic provision of the statement in a
manner similar to the one permitted under regulations issued
under section 6051 of such Code or in such other manner as
provided by the Secretary.
SEC. 602. EXCLUDED CANCELLATION OF INDEBTEDNESS INCOME OF S
CORPORATION NOT TO RESULT IN ADJUSTMENT TO
BASIS OF STOCK OF SHAREHOLDERS.
(a) In General.--Subparagraph (A) of section 108(d)(7)
(relating to certain provisions to be applied at corporate
level) is amended by inserting before the period ``,
including by not taking into account under section 1366(a)
any amount excluded under subsection (a) of this section''.
(b) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendment made by this section shall apply to discharges of
indebtedness after October 11, 2001, in taxable years ending
after such date.
(2) Exception.--The amendment made by this section shall
not apply to any discharge of indebtedness before March 1,
2002, pursuant to a plan of reorganization filed with a
bankruptcy court on or before October 11, 2001.
SEC. 603. LIMITATION ON USE OF NONACCRUAL EXPERIENCE METHOD
OF ACCOUNTING.
(a) In General.--Paragraph (5) of section 448(d) is amended
to read as follows:
``(5) Special rule for certain services.--
``(A) In general.--In the case of any person using an
accrual method of accounting with respect to amounts to be
received for the performance of services by such person, such
person shall not be required to accrue any portion of such
amounts which (on the basis of such person's experience) will
not be collected if--
``(i) such services are in fields referred to in paragraph
(2)(A), or
``(ii) such person meets the gross receipts test of
subsection (c) for all prior taxable years.
``(B) Exception.--This paragraph shall not apply to any
amount if interest is required to be paid on such amount or
there is any penalty for failure to timely pay such amount.
``(C) Regulations.--The Secretary shall prescribe
regulations to permit taxpayers to determine amounts referred
to in subparagraph (A) using computations or formulas which,
based on experience, accurately reflect the amount of income
that will not be collected by such person. A taxpayer may
adopt, or request consent of the Secretary to change to, a
computation or formula that clearly reflects the taxpayer's
experience. A request under the preceding sentence shall be
approved if such computation or formula clearly reflects the
taxpayer's experience.''.
(b) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to taxable years ending after the date of the enactment
of this Act.
(2) Change in method of accounting.--In the case of any
taxpayer required by the amendments made by this section to
change its method of accounting for its first taxable year
ending after the date of the enactment of this Act--
(A) such change shall be treated as initiated by the
taxpayer,
(B) such change shall be treated as made with the consent
of the Secretary of the Treasury, and
(C) the net amount of the adjustments required to be taken
into account by the taxpayer under section 481 of the
Internal Revenue Code of 1986 shall be taken into account
over a period of 4 years (or if less, the number of taxable
years that the taxpayer used the method permitted under
section 448(d)(5) of such Code as in effect before the date
of the enactment of this Act) beginning with such first
taxable year.
[[Page H10837]]
SEC. 604. EXCLUSION FOR FOSTER CARE PAYMENTS TO APPLY TO
PAYMENTS BY QUALIFIED PLACEMENT AGENCIES.
(a) In General.--The matter preceding subparagraph (B) of
section 131(b)(1) (defining qualified foster care payment) is
amended to read as follows:
``(1) In general.--The term `qualified foster care payment'
means any payment made pursuant to a foster care program of a
State or political subdivision thereof--
``(A) which is paid by--
``(i) a State or political subdivision thereof, or
``(ii) a qualified foster care placement agency, and''.
(b) Qualified Foster Individuals To Include Individuals
Placed by Qualified Placement Agencies.--Subparagraph (B) of
section 131(b)(2) (defining qualified foster individual) is
amended to read as follows:
``(B) a qualified foster care placement agency.''
(c) Qualified Foster Care Placement Agency Defined.--
Subsection (b) of section 131 is amended by redesignating
paragraph (3) as paragraph (4) and by inserting after
paragraph (2) the following new paragraph:
``(3) Qualified foster care placement agency.--The term
`qualified foster care placement agency' means any placement
agency which is licensed or certified by--
``(A) a State or political subdivision thereof, or
``(B) an entity designated by a State or political
subdivision thereof,
for the foster care program of such State or political
subdivision to make foster care payments to providers of
foster care.''
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2001.
SEC. 605. INTEREST RATE RANGE FOR ADDITIONAL FUNDING
REQUIREMENTS.
(a) Amendments to the Internal Revenue Code of 1986.--
(1) Special rule.--Clause (i) of section 412(l)(7)(C)
(relating to interest rate) is amended by adding at the end
the following new subclause:
``(III) Special rule for 2002 and 2003.--For a plan year
beginning in 2002 or 2003, notwithstanding subclause (I), in
the case that the rate of interest used under subsection
(b)(5) exceeds the highest rate permitted under subclause
(I), the rate of interest used to determine current liability
under this subsection may exceed the rate of interest
otherwise permitted under subclause (I); except that such
rate of interest shall not exceed 120 percent of the weighted
average referred to in subsection (b)(5)(B)(ii).''
(2) Quarterly contributions.--Subsection (m) of section 412
is amended by adding at the end the following new paragraph:
``(7) Special rules for 2002 and 2004.--In any case in
which the interest rate used to determine current liability
is determined under subsection (l)(7)(C)(i)(III)--
``(A) 2002.--For purposes of applying paragraphs (1) and
(4)(B)(ii) for plan years beginning in 2002, the current
liability for the preceding plan year shall be redetermined
using 120 percent as the specified percentage determined
under subsection (l)(7)(C)(i)(II).
``(B) 2004.--For purposes of applying paragraphs (1) and
(4)(B)(ii) for plan years beginning in 2004, the current
liability for the preceding plan year shall be redetermined
using 105 percent as the specified percentage determined
under subsection (l)(7)(C)(i)(II).''
(b) Amendments to the Employee Retirement Income Security
Act of 1974.--
(1) Special rule.--Clause (i) of section 302(d)(7)(C) of
such Act (29 U.S.C. 1082(d)(7)(C)) is amended by adding at
the end the following new subclause:
``(III) Special rule for 2002 and 2003.--For a plan year
beginning in 2002 or 2003, notwithstanding subclause (I), in
the case that the rate of interest used under subsection
(b)(5) exceeds the highest rate permitted under subclause
(I), the rate of interest used to determine current liability
under this subsection may exceed the rate of interest
otherwise permitted under subclause (I); except that such
rate of interest shall not exceed 120 percent of the weighted
average referred to in subsection (b)(5)(B)(ii).''
(2) Quarterly contributions.--Subsection (e) of section 302
of such Act (29 U.S.C. 1082) is amended by adding at the end
the following new paragraph:
``(7) Special rules for 2002 and 2004.--In any case in
which the interest rate used to determine current liability
is determined under subsection (d)(7)(C)(i)(III)--
``(A) 2002.--For purposes of applying paragraphs (1) and
(4)(B)(ii) for plan years beginning in 2002, the current
liability for the preceding plan year shall be redetermined
using 120 percent as the specified percentage determined
under subsection (d)(7)(C)(i)(II).
``(B) 2004.--For purposes of applying paragraphs (1) and
(4)(B)(ii) for plan years beginning in 2004, the current
liability for the preceding plan year shall be redetermined
using 105 percent as the specified percentage determined
under subsection (d)(7)(C)(i)(II).''
(c) PBGC.--Clause (iii) of section 4006(a)(3)(E) 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 subclause:
``(IV) In the case of plan years beginning after December
31, 2001, and before January 1, 2004, subclause (II) shall be
applied by substituting `100 percent' for `85 percent'.
Subclause (III) shall be applied for such years without
regard to the preceding sentence. Any reference to this
clause by any other sections or subsections shall be treated
as a reference to this clause without regard to this
subclause.''
SEC. 606. ADJUSTED GROSS INCOME DETERMINED BY TAKING INTO
ACCOUNT CERTAIN EXPENSES OF ELEMENTARY AND
SECONDARY SCHOOL TEACHERS.
(a) In General.--Section 62(a)(2) (relating to certain
trade and business deductions of employees) is amended by
adding at the end the following:
``(D) Certain expenses of elementary and secondary school
teachers.--In the case of taxable years beginning during 2002
or 2003, the deductions allowed by section 162 which consist
of expenses, not in excess of $250, paid or incurred by an
eligible educator in connection with books, supplies (other
than nonathletic supplies for courses of instruction in
health or physical education), computer equipment (including
related software and services) and other equipment, and
supplementary materials used by the eligible educator in the
classroom.''.
(b) Eligible Educator.--Section 62 is amended by adding at
the end the following:
``(d) Definition; Special Rules.--
``(1) Eligible educator.--
``(A) In general.--For purposes of subsection (a)(2)(D),
the term `eligible educator' means, with respect to any
taxable year, an individual who is a kindergarten through
grade 12 teacher, instructor, counselor, principal, or aide
in a school for at least 900 hours during a school year.
``(B) School.--The term `school' means any school which
provides elementary education or secondary education
(kindergarten through grade 12), as determined under State
law.
``(2) Coordination with exclusions.--A deduction shall be
allowed under subsection (a)(2)(D) for 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.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2001.
Subtitle B--Technical Corrections
SEC. 611. AMENDMENTS RELATED TO ECONOMIC GROWTH AND TAX
RELIEF RECONCILIATION ACT OF 2001.
(a) Amendments Related to Section 101 of the Act.--
(1) In general.--Subsection (b) of section 6428 is amended
to read as follows:
``(b) Credit Treated as Nonrefundable Personal Credit.--For
purposes of this title, the credit allowed under this section
shall be treated as a credit allowable under subpart A of
part IV of subchapter A of chapter 1.''.
(2) Conforming amendments.--
(A) Subsection (d) of section 6428 is amended to read as
follows:
``(d) Coordination with Advance Refunds of Credit.--
``(1) In general.--The amount of credit which would (but
for this paragraph) be allowable under this section shall be
reduced (but not below zero) by the aggregate refunds and
credits made or allowed to the taxpayer under subsection (e).
Any failure to so reduce the credit shall be treated as
arising out of a mathematical or clerical error and assessed
according to section 6213(b)(1).
``(2) Joint returns.--In the case of a refund or credit
made or allowed under subsection (e) with respect to a joint
return, half of such refund or credit shall be treated as
having been made or allowed to each individual filing such
return.''.
(B) Paragraph (2) of section 6428(e) is amended to read as
follows:
``(2) Advance refund amount.--For purposes of paragraph
(1), the advance refund amount is the amount that would have
been allowed as a credit under this section for such first
taxable year if--
``(A) this section (other than subsections (b) and (d) and
this subsection) had applied to such taxable year, and
``(B) the credit for such taxable year were not allowed to
exceed the excess (if any) of--
``(i) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(ii) the sum of the credits allowable under part IV of
subchapter A of chapter 1 (other than the credits allowable
under subpart C thereof, relating to refundable credits).''
(b) Amendment Related to Section 201 of the Act.--
Subparagraph (B) of section 24(d)(1) is amended by striking
``amount of credit allowed by this section'' and inserting
``aggregate amount of credits allowed by this subpart''.
(c) Amendments Related to Section 202 of the Act.--
(1) Corrections to credit for adoption expenses.--
(A) Paragraph (1) of section 23(a) is amended to read as
follows:
``(1) In general.--In the case of an individual, there
shall be allowed as a credit against the tax imposed by this
chapter the amount of the qualified adoption expenses paid or
incurred by the taxpayer.''
(B) Subsection (a) of section 23 is amended by adding at
the end the following new paragraph:
``(3) $10,000 credit for adoption of child with special
needs regardless of expenses.--In the case of an adoption of
a child with special needs which becomes final during a
taxable year, the taxpayer shall be treated as having paid
during such year qualified adoption expenses with respect to
such adoption in an amount equal to the excess (if any) of
$10,000 over the aggregate qualified adoption expenses
actually paid or incurred by the taxpayer with respect to
[[Page H10838]]
such adoption during such taxable year and all prior taxable
years.''
(C) Paragraph (2) of section 23(a) is amended by striking
the last sentence.
(D) Paragraph (1) of section 23(b) is amended by striking
``subsection (a)(1)(A)'' and inserting ``subsection (a)''.
(E) Subsection (i) of section 23 is amended by striking
``the dollar limitation in subsection (b)(1)'' and inserting
``the dollar amounts in subsections (a)(3) and (b)(1)''.
(F) Expenses paid or incurred during any taxable year
beginning before January 1, 2002, may be taken into account
in determining the credit under section 23 of the Internal
Revenue Code of 1986 only to the extent the aggregate of such
expenses does not exceed the applicable limitation under
section 23(b)(1) of such Code as in effect on the day before
the date of the enactment of the Economic Growth and Tax
Relief Reconciliation Act of 2001.
(2) Corrections to exclusion for employer-provided adoption
assistance.--
(A) Subsection (a) of section 137 is amended to read as
follows:
``(a) Exclusion.--
``(1) In general.--Gross income of an employee does not
include amounts paid or expenses incurred by the employer for
qualified adoption expenses in connection with the adoption
of a child by an employee if such amounts are furnished
pursuant to an adoption assistance program.
``(2) $10,000 exclusion for adoption of child with special
needs regardless of expenses.--In the case of an adoption of
a child with special needs which becomes final during a
taxable year, the qualified adoption expenses with respect to
such adoption for such year shall be increased by an amount
equal to the excess (if any) of $10,000 over the actual
aggregate qualified adoption expenses with respect to such
adoption during such taxable year and all prior taxable
years.''
(B) Paragraph (2) of section 137(b) is amended by striking
``subsection (a)(1)'' and inserting ``subsection (a)''.
(3) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31,
2002; except that the amendments made by paragraphs (1)(C),
(1)(D), and (2)(B) shall apply to taxable years beginning
after December 31, 2001.
(d) Amendments Related to Section 205 of the Act.--
(1) Section 45F(d)(4)(B) is amended by striking ``subpart
A, B, or D of this part'' and inserting ``this chapter or for
purposes of section 55''.
(2) Section 38(b)(15) is amended by striking ``45F'' and
inserting ``45F(a)''.
(e) Amendments Related to Section 301 of the Act.--
(1) Section 63(c)(2) is amended--
(A) in subparagraph (A), by striking ``subparagraph (C)''
and inserting ``subparagraph (D)'',
(B) by striking ``or'' at the end of subparagraph (B),
(C) by redesignating subparagraph (C) as subparagraph (D),
and
(D) by inserting after subparagraph (B) the following new
subparagraph:
``(C) one-half of the amount allowable under subparagraph
(A) in the case of a married individual filing a separate
return, or''.
(2) Section 63(c)(7) is amended by adding at the end the
following:
``If any amount determined under the preceding table is not a
multiple of $50, such amount shall be rounded to the next
lowest multiple of $50.''.
(f) Amendment Related to Section 401 of the Act.--Section
530(d)(4)(B)(iv) is amended by striking ``because the
taxpayer elected under paragraph (2)(C) to waive the
application of paragraph (2)'' and inserting ``by application
of paragraph (2)(C)(i)(II)''.
(g) Amendment Related to Section 511 of the Act.--Section
2511(c) is amended by striking ``taxable gift under section
2503,'' and inserting ``transfer of property by gift,''.
(h) Amendment Related to Section 532 of the Act.--Section
2016 is amended by striking ``any State, any possession of
the United States, or the District of Columbia,''.
(i) Amendments Relating to Section 602 of the Act.--
(1) Subparagraph (A) of section 408(q)(3) is amended to
read as follows:
``(A) Qualified employer plan.--The term `qualified
employer plan' has the meaning given such term by section
72(p)(4)(A)(i); except that such term shall also include an
eligible deferred compensation plan (as defined in section
457(b)) of an eligible employer described in section
457(e)(1)(A).''.
(2) Section 4(c) of Employee Retirement Income Security Act
of 1974 is amended--
(A) by inserting ``and part 5 (relating to administration
and enforcement)'' before the period at the end, and
(B) by adding at the end the following new sentence: ``Such
provisions shall apply to such accounts and annuities in a
manner similar to their application to a simplified employee
pension under section 408(k) of the Internal Revenue Code of
1986.''.
(j) Amendments Relating to Section 611 of the Act.--
(1) Section 408(k) is amended--
(A) in paragraph (2)(C) by striking ``$300'' and inserting
``$450'', and
(B) in paragraph (8) by striking ``$300'' both places it
appears and inserting ``$450''.
(2) Section 409(o)(1)(C)(ii) is amended--
(A) by striking ``$500,000'' both places it appears and
inserting ``$800,000'', and
(B) by striking ``$100,000'' and inserting ``$160,000''.
(3) Section 611(i) of the Economic Growth and Tax Relief
Reconciliation Act of 2001 is amended by adding at the end
the following new paragraph:
``(3) Special rule.--In the case of plan that, on June 7,
2001, incorporated by reference the limitation of section
415(b)(1)(A) of the Internal Revenue Code of 1986, section
411(d)(6) of such Code and section 204(g)(1) of the Employee
Retirement Income Security Act of 1974 do not apply to a plan
amendment that--
``(A) is adopted on or before June 30, 2002,
``(B) reduces benefits to the level that would have applied
without regard to the amendments made by subsection (a) of
this section, and
``(C) is effective no earlier than the years described in
paragraph (2).''.
(k) Amendments Relating to Section 613 of the Act.--
(1) Section 416(c)(1)(C)(iii) is amended by striking
``Exception for frozen plan'' and inserting ``Exception for
plan under which no key employee (or former key employee)
benefits for plan year''.
(2) Section 416(g)(3)(B) is amended by striking
``separation from service'' and inserting ``severance from
employment''.
(l) Amendments Relating to Sections 614 and 616 of the
Act.--
(1) Section 404(a)(12) is amended by striking ``(9),'' and
inserting ``(9) and subsection (h)(1)(C),''.
(2) Section 404(n) is amended by striking ``subsection
(a),'' and inserting ``subsection (a) or paragraph (1)(C) of
subsection (h)''.
(3) Section 402(h)(2)(A) is amended by striking ``15
percent'' and inserting ``25 percent''.
(4) Section 404(a)(7)(C) is amended to read as follows:
``(C) Paragraph not to apply in certain cases.--
``(i) Beneficiary test.--This paragraph shall not have the
effect of reducing the amount otherwise deductible under
paragraphs (1), (2), and (3), if no employee is a beneficiary
under more than 1 trust or under a trust and an annuity plan.
``(ii) Elective deferrals.--If, in connection with 1 or
more defined contribution plans and 1 or more defined benefit
plans, no amounts (other than elective deferrals (as defined
in section 402(g)(3))) are contributed to any of the defined
contribution plans for the taxable year, then subparagraph
(A) shall not apply with respect to any of such defined
contribution plans and defined benefit plans.''.
(m) Amendment Relating to Section 618 of the Act.--Section
25B(d)(2)(A) is amended to read as follows:
``(A) In general.--The qualified retirement savings
contributions determined under paragraph (1) shall be reduced
(but not below zero) by the aggregate distributions received
by the individual during the testing period from any entity
of a type to which contributions under paragraph (1) may be
made. The preceding sentence shall not apply to the portion
of any distribution which is not includible in gross income
by reason of a trustee-to-trustee transfer or a rollover
distribution.''.
(n) Amendments Relating to Section 619 of the Act.--
(1) Section 45E(e)(1) is amended by striking ``(n)'' and
inserting ``(m)''.
(2) Section 619(d) of the Economic Growth and Tax Relief
Reconciliation Act of 2001 is amended by striking
``established'' and inserting ``first effective''.
(o) Amendments Relating to Section 631 of the Act.--
(1) Section 402(g)(1) is amended by adding at the end the
following:
``(C) Catch-up contributions.--In addition to subparagraph
(A), in the case of an eligible participant (as defined in
section 414(v)), gross income shall not include elective
deferrals in excess of the applicable dollar amount under
subparagraph (B) to the extent that the amount of such
elective deferrals does not exceed the applicable dollar
amount under section 414(v)(2)(B)(i) for the taxable year
(without regard to the treatment of the elective deferrals by
an applicable employer plan under section 414(v)).''.
(2) Section 401(a)(30) is amended by striking ``402(g)(1)''
and inserting ``402(g)(1)(A)''.
(3) Section 414(v)(2) is amended by adding at the end the
following:
``(D) Aggregation of plans.--For purposes of this
paragraph, plans described in clauses (i), (ii), and (iv) of
paragraph (6)(A) that are maintained by the same employer (as
determined under subsection (b), (c), (m) or (o)) shall be
treated as a single plan, and plans described in clause (iii)
of paragraph (6)(A) that are maintained by the same employer
shall be treated as a single plan.''.
(4) Section 414(v)(3)(A)(i) is amended by striking
``section 402(g), 402(h), 403(b), 404(a), 404(h), 408(k),
408(p), 415, or 457'' and inserting ``section 401(a)(30),
402(h), 403(b), 408, 415(c), and 457(b)(2) (determined
without regard to section 457(b)(3))''.
(5) Section 414(v)(3)(B) is amended by striking ``section
401(a)(4), 401(a)(26), 401(k)(3), 401(k)(11), 401(k)(12),
403(b)(12), 408(k), 408(p), 408B, 410(b), or 416'' and
inserting ``section 401(a)(4), 401(k)(3), 401(k)(11),
403(b)(12), 408(k), 410(b), or 416''.
(6) Section 414(v)(4)(B) is amended by inserting before the
period at the end the following: ``, except that a plan
described in clause (i) of section 410(b)(6)(C) shall not be
treated as a plan of the employer until the expiration of the
transition period with respect to such plan (as determined
under clause (ii) of such section)''.
[[Page H10839]]
(7) Section 414(v)(5) is amended--
(A) by striking ``, with respect to any plan year,'' in the
matter preceding subparagraph (A),
(B) by amending subparagraph (A) to read as follows:
``(A) who would attain age 50 by the end of the taxable
year,'', and
(C) in subparagraph (B) by striking ``plan year'' and
inserting ``plan (or other applicable) year''.
(8) Section 414(v)(6)(C) is amended to read as follows:
``(C) Exception for section 457 plans.--This subsection
shall not apply to a participant for any year for which a
higher limitation applies to the participant under section
457(b)(3).''.
(9) Section 457(e) is amended by adding at the end the
following new paragraph:
``(18) Coordination with catch-up contributions for
individuals age 50 or older.-- In the case of an individual
who is an eligible participant (as defined by section 414(v))
and who is a participant in an eligible deferred compensation
plan of an employer described in paragraph (1)(A),
subsections (b)(3) and (c) shall be applied by substituting
for the amount otherwise determined under the applicable
subsection the greater of--
``(A) the sum of--
``(i) the plan ceiling established for purposes of
subsection (b)(2) (without regard to subsection (b)(3)), plus
``(ii) the applicable dollar amount for the taxable year
determined under section 414(v)(2)(B)(i), or
``(B) the amount determined under the applicable subsection
(without regard to this paragraph).''.
(p) Amendments Relating to Section 632 of the Act.--
(1) Section 403(b)(1) is amended in the matter following
subparagraph (E) by striking ``then amounts contributed'' and
all that follows and inserting the following:
``then contributions and other additions by such employer
for such annuity contract shall be excluded from the gross
income of the employee for the taxable year to the extent
that the aggregate of such contributions and additions (when
expressed as an annual addition (within the meaning of
section 415(c)(2))) does not exceed the applicable limit
under section 415. The amount actually distributed to any
distributee under such contract shall be taxable to the
distributee (in the year in which so distributed) under
section 72 (relating to annuities). For purposes of applying
the rules of this subsection to contributions and other
additions by an employer for a taxable year, amounts
transferred to a contract described in this paragraph by
reason of a rollover contribution described in paragraph (8)
of this subsection or section 408(d)(3)(A)(ii) shall not be
considered contributed by such employer.''.
(2) Section 403(b) is amended by striking paragraph (6).
(3) Section 403(b)(3) is amended--
(A) in the first sentence by inserting the following before
the period at the end: ``, and which precedes the taxable
year by no more than five years'', and
(B) in the second sentence by striking ``or any amount
received by a former employee after the fifth taxable year
following the taxable year in which such employee was
terminated''.
(4) Section 415(c)(7) is amended to read as follows:
``(7) Special rules relating to church plans.--
``(A) Alternative contribution limitation.--
``(i) In general.--Notwithstanding any other provision of
this subsection, at the election of a participant who is an
employee of a church or a convention or association of
churches, including an organization described in section
414(e)(3)(B)(ii), contributions and other additions for an
annuity contract or retirement income account described in
section 403(b) with respect to such participant, when
expressed as an annual addition to such participant's
account, shall be treated as not exceeding the limitation of
paragraph (1) if such annual addition is not in excess of
$10,000.
``(ii) $40,000 aggregate limitation.--The total amount of
additions with respect to any participant which may be taken
into account for purposes of this subparagraph for all years
may not exceed $40,000.
``(B) Number of years of service for duly ordained,
commissioned, or licensed ministers or lay employees.--For
purposes of this paragraph--
``(i) all years of service by--
``(I) a duly ordained, commissioned, or licensed minister
of a church, or
``(II) a lay person,
as an employee of a church, a convention or association of
churches, including an organization described in section
414(e)(3)(B)(ii), shall be considered as years of service for
1 employer, and
``(ii) all amounts contributed for annuity contracts by
each such church (or convention or association of churches)
or such organization during such years for such minister or
lay person shall be considered to have been contributed by 1
employer.
``(C) Foreign missionaries.--In the case of any individual
described in subparagraph (D) performing services outside the
United States, contributions and other additions for an
annuity contract or retirement income account described in
section 403(b) with respect to such employee, when expressed
as an annual addition to such employee's account, shall not
be treated as exceeding the limitation of paragraph (1) if
such annual addition is not in excess of the greater of
$3,000 or the employee's includible compensation determined
under section 403(b)(3).
``(D) Annual addition.--For purposes of this paragraph, the
term `annual addition' has the meaning given such term by
paragraph (2).
``(E) Church, convention or association of churches.--For
purposes of this paragraph, the terms `church' and
`convention or association of churches' have the same meaning
as when used in section 414(e).''.
(5) Section 457(e)(5) is amended to read as follows:
``(5) Includible compensation.--The term `includible
compensation' has the meaning given to the term
`participant's compensation' by section 415(c)(3).''.
(6) Section 402(g)(7)(B) is amended by striking ``2001.''
and inserting ``2001).''.
(q) Amendments Relating to Section 643 of the Act.--
(1) Section 401(a)(31)(C)(i) is amended by inserting ``is a
qualified trust which is part of a plan which is a defined
contribution plan and'' before ``agrees''.
(2) Section 402(c)(2) is amended by adding at the end the
following flush sentence:
``In the case of a transfer described in subparagraph (A) or
(B), the amount transferred shall be treated as consisting
first of the portion of such distribution that is includible
in gross income (determined without regard to paragraph
(1)).''.
(r) Amendments Relating to Section 648 of the Act.--
(1) Section 417(e) is amended--
(A) in paragraph (1) by striking ``exceed the dollar limit
under section 411(a)(11)(A)'' and inserting ``exceed the
amount that can be distributed without the participant's
consent under section 411(a)(11)'', and
(B) in paragraph (2)(A) by striking ``exceeds the dollar
limit under section 411(a)(11)(A)'' and inserting ``exceeds
the amount that can be distributed without the participant's
consent under section 411(a)(11)''.
(2) Section 205(g) of the Employee Retirement Income
Security Act of 1974 is amended--
(A) in paragraph (1) by striking ``exceed the dollar limit
under section 203(e)(1)'' and inserting ``exceed the amount
that can be distributed without the participant's consent
under section 203(e)'', and
(B) in paragraph (2)(A) by striking ``exceeds the dollar
limit under section 203(e)(1)'' and inserting ``exceeds the
amount that can be distributed without the participant's
consent under section 203(e)''.
(s) Amendment Relating to Section 652 of the Act.--Section
404(a)(1)(D)(iv) is amended by striking ``Plans maintained by
professional service employers'' and inserting ``Special rule
for terminating plans''.
(t) Amendments Relating to Section 657 of the Act.--Section
404(c)(3) of the Employee Retirement Income Security Act of
1974 is amended--
(1) by striking ``the earlier of'' in subparagraph (A) the
second place it appears, and
(2) by striking ``if the transfer'' and inserting ``a
transfer that''.
(u) Amendments Relating to Section 659 of the Act.--
(1) Section 4980F is amended--
(A) in subsection (e)(1) by striking ``written notice'' and
inserting ``the notice described in paragraph (2)'',
(B) by amending subsection (f)(2)(A) to read as follows:
``(A) any defined benefit plan described in section 401(a)
which includes a trust exempt from tax under section 501(a),
or'', and
(C) in subsection (f)(3) by striking ``significantly'' both
places it appears.
(2) Section 204(h)(9) of the Employee Retirement Income
Security Act of 1974 is amended by striking ``significantly''
both places it appears.
(3) Section 659(c)(3)(B) of the Economic Growth and Tax
Relief Reconciliation Act of 2001 is amended by striking
``(or'' and inserting ``(and''.
(v) Amendments Relating to Section 661 of the Act.--
(1) Section 412(c)(9)(B) is amended--
(A) in clause (ii) by striking ``125 percent'' and
inserting ``100 percent'', and
(B) by adding at the end the following new clause:
``(iv) Limitation.--A change in funding method to use a
prior year valuation, as provided in clause (ii), may not be
made unless as of the valuation date within the prior plan
year, the value of the assets of the plan are not less than
125 percent of the plan's current liability (as defined in
paragraph (7)(B)).''.
(2) Section 302(c)(9)(B) of the Employee Retirement Income
Security Act of 1974 is amended--
(A) in clause (ii) by striking ``125 percent'' and
inserting ``100 percent'', and
(B) by adding at the end the following new clause:
``(iv) A change in funding method to use a prior year
valuation, as provided in clause (ii), may not be made unless
as of the valuation date within the prior plan year, the
value of the assets of the plan are not less than 125 percent
of the plan's current liability (as defined in paragraph
(7)(B)).''.
(w) Amendments Relating to Section 662 of the Act.--
(1) Section 404(k) is amended--
(A) in paragraph (1) by striking ``during the taxable
year'',
(B) in paragraph (2)(B) by striking ``(A)(iii)'' and
inserting ``(A)(iv)'',
[[Page H10840]]
(C) in paragraph (4)(B) by striking ``(iii)'' and inserting
``(iv)'', and
(D) by redesignating subparagraph (B) of paragraph (4) (as
amended by subparagraph (C)) as subparagraph (C) of paragraph
(4) and by inserting after subparagraph (A) the following new
subparagraph:
``(B) Reinvestment dividends.--For purposes of subparagraph
(A), an applicable dividend reinvested pursuant to clause
(iii)(II) of paragraph (2)(A) shall be treated as paid in the
taxable year of the corporation in which such dividend is
reinvested in qualifying employer securities or in which the
election under clause (iii) of paragraph (2)(A) is made,
whichever is later.''.
(2) Section 404(k) is amended by adding at the end the
following new paragraph:
``(7) Full vesting.--In accordance with section 411, an
applicable dividend described in clause (iii)(II) of
paragraph (2)(A) shall be subject to the requirements of
section 411(a)(1).''.
(x) Effective Date.--Except as provided in subsection (c),
the amendments made by this section shall take effect as if
included in the provisions of the Economic Growth and Tax
Relief Reconciliation Act of 2001 to which they relate.
SEC. 612. AMENDMENTS RELATED TO COMMUNITY RENEWAL TAX RELIEF
ACT OF 2000.
(a) Amendment Related to Section 101 of the Act.--Section
469(i)(3)(E) is amended by striking clauses (ii), (iii), and
(iv) and inserting the following:
``(ii) second to the portion of such loss to which
subparagraph (C) applies,
``(iii) third to the portion of the passive activity credit
to which subparagraph (B) or (D) does not apply,
``(iv) fourth to the portion of such credit to which
subparagraph (B) applies, and''.
(b) Amendment Related to Section 306 of the Act.--Section
151(c)(6)(C) is amended--
(1) by striking ``for earned income credit.--For purposes
of section 32, an'' and inserting ``for principal place of
abode requirements.--An'', and
(2) by striking ``requirement of section 32(c)(3)(A)(ii)''
and inserting ``principal place of abode requirements of
section 2(a)(1)(B), section 2(b)(1)(A), and section
32(c)(3)(A)(ii)''.
(c) Amendment Related to Section 309 of the Act.--
Subparagraph (A) of section 358(h)(1) is amended to read as
follows:
``(A) which is assumed by another person as part of the
exchange, and''.
(d) Amendments Related to Section 401 of the Act.--
(1)(A) Section 1234A is amended by inserting ``or'' after
the comma at the end of paragraph (1), by striking ``or'' at
the end of paragraph (2), and by striking paragraph (3).
(B)(i) Section 1234B is amended in subsection (a)(1) and in
subsection (b) by striking ``sale or exchange'' the first
place it appears in each subsection and inserting ``sale,
exchange, or termination''.
(ii) Section 1234B is amended by adding at the end the
following new subsection:
``(f) Cross Reference.--
``For special rules relating to dealer securities futures contracts,
see section 1256.''
(2) Section 1091(e) is amended--
(A) in the heading, by striking ``Securities.--'' and
inserting ``Securities and Securities Futures Contracts To
Sell.--'',
(B) by inserting after ``closing of a short sale of'' the
following: ``(or a securities futures contract to sell)'',
(C) in paragraph (2), by inserting after ``short sale of''
the following: ``(or securities futures contracts to sell)'',
and
(D) by adding at the end the following:
``For purposes of this subsection, the term `securities
futures contract' has the meaning provided by section
1234B(c).''.
(3) Section 1233(e)(2) is amended by striking ``and'' at
the end of subparagraph (C), by striking the period and
inserting ``; and'' at the end of subparagraph (D), and by
adding at the end the following:
``(E) entering into a securities futures contract (as so
defined) to sell shall be treated as entering into a short
sale, and the sale, exchange, or termination of a securities
futures contract to sell shall be treated as the closing of a
short sale.''.
(e) Effective Date.--The amendments made by this section
shall take effect as if included in the provisions of the
Community Renewal Tax Relief Act of 2000 to which they
relate.
SEC. 613. AMENDMENTS RELATED TO THE TAX RELIEF EXTENSION ACT
OF 1999.
(a) Amendments Related to Section 545 of the Act.--Section
857(b)(7) is amended--
(1) in clause (i) of subparagraph (B), by striking ``the
amount of which'' and inserting ``to the extent the amount of
the rents'', and
(2) in subparagraph (C), by striking ``if the amount'' and
inserting ``to the extent the amount''.
(b) Effective Date.--The amendments made by this section
shall take effect as if included in section 545 of the Tax
Relief Extension Act of 1999.
SEC. 614. AMENDMENTS RELATED TO THE TAXPAYER RELIEF ACT OF
1997.
(a) Amendments Related to Section 311 of the Act.--Section
311(e) of the Taxpayer Relief Act of 1997 (Public Law 105-34;
111 Stat. 836) is amended--
(1) in paragraph (2)(A), by striking ``recognized'' and
inserting ``included in gross income'', and
(2) by adding at the end the following new paragraph:
``(5) Disposition of interest in passive activity.--Section
469(g)(1)(A) of the Internal Revenue Code of 1986 shall not
apply by reason of an election made under paragraph (1).''.
(b) Effective Date.--The amendments made by this section
shall take effect as if included in section 311 of the
Taxpayer Relief Act of 1997.
SEC. 615. AMENDMENT RELATED TO THE BALANCED BUDGET ACT OF
1997.
(a) Amendment Related to Section 4006 of the Act.--Section
26(b)(2) is amended by striking ``and'' at the end of
subparagraph (P), by striking the period and inserting ``,
and'' at the end of subparagraph (Q), and by adding at the
end the following new subparagraph:
``(R) section 138(c)(2) (relating to penalty for
distributions from Medicare+Choice MSA not used for qualified
medical expenses if minimum balance not maintained).''.
(b) Effective Date.--The amendment made by this section
shall take effect as if included in section 4006 of the
Balanced Budget Act of 1997.
SEC. 616. OTHER TECHNICAL CORRECTIONS.
(a) Coordination of Advanced Payments of Earned Income
Credit.--
(1) Section 32(g)(2) is amended by striking ``subpart'' and
inserting ``part''.
(2) The amendment made by this subsection shall take effect
as if included in section 474 of the Tax Reform Act of 1984.
(b) Disclosure by Social Security Administration to Federal
Child Support Agencies.--
(1) Section 6103(l)(8) is amended--
(A) in the heading, by striking ``state and local'' and
inserting ``federal, state, and local'', and
(B) in subparagraph (A), by inserting ``Federal or'' before
``State or local''.
(2) The amendments made by this subsection shall take
effect on the date of the enactment of this Act.
(c) Treatment of Settlements Under Partnership Audit
Rules.--
(1) The following provisions are each amended by inserting
``or the Attorney General (or his delegate)'' after
``Secretary'' each place it appears:
(A) Paragraphs (1) and (2) of section 6224(c).
(B) Section 6229(f)(2).
(C) Section 6231(b)(1)(C).
(D) Section 6234(g)(4)(A).
(2) The amendments made by this subsection shall apply with
respect to settlement agreements entered into after the date
of the enactment of this Act.
(d) Amendment Related to Procedure and Administration.--
(1) Section 6331(k)(3) (relating to no levy while certain
offers pending or installment agreement pending or in effect)
is amended to read as follows:
``(3) Certain rules to apply.--Rules similar to the rules
of--
``(A) paragraphs (3) and (4) of subsection (i), and
``(B) except in the case of paragraph (2)(C), paragraph (5)
of subsection (i),
shall apply for purposes of this subsection.''.
(2) The amendment made by this subsection shall take effect
on the date of the enactment of this Act.
(e) Modified Endowment Contracts.--Paragraph (2) of section
318(a) of the Community Renewal Tax Relief Act of 2000 (114
Stat. 2763A-645) is repealed, and clause (ii) of section
7702A(c)(3)(A) shall read and be applied as if the amendment
made by such paragraph had not been enacted.
SEC. 617. CLERICAL AMENDMENTS.
(1) The subsection (g) of section 25B that relates to
termination is redesignated as subsection (h).
(2) Section 51A(c)(1) is amended by striking ``51(d)(10)''
and inserting ``51(d)(11)''.
(3) Section 172(b)(1)(F)(i) is amended--
(A) by striking ``3 years'' and inserting ``3 taxable
years'', and
(B) by striking ``2 years'' and inserting ``2 taxable
years''.
(4) Section 351(h)(1) is amended by inserting a comma after
``liability''.
(5) Section 741 is amended by striking ``which have
appreciated substantially in value''.
(6) Section 857(b)(7)(B)(i) is amended by striking
``subsection 856(d)'' and inserting ``section 856(d)''.
(7) Section 1394(c)(2) is amended by striking
``subparagraph (A)'' and inserting ``paragraph (1)''.
(8)(A) Section 6227(d) is amended by striking ``subsection
(b)'' and inserting ``subsection (c)''.
(B) Section 6228 is amended--
(i) in subsection (a)(1), by striking ``subsection (b) of
section 6227'' and inserting ``subsection (c) of section
6227'',
(ii) in subsection (a)(3)(A), by striking ``subsection (b)
of'', and
(iii) in subsections (b)(1) and (b)(2)(A), by striking
``subsection (c) of section 6227'' and inserting ``subsection
(d) of section 6227''.
(C) Section 6231(b)(2)(B)(i) is amended by striking
``section 6227(c)'' and inserting ``section 6227(d)''.
(9) Section 1221(b)(1)(B)(i) is amended by striking
``1256(b))'' and inserting ``1256(b)))''.
(10) Section 618(b)(2) of the Economic Growth and Tax
Relief Reconciliation Act of 2001 (Public Law 107-16; 115
Stat. 108) is amended--
(A) in subparagraph (A) by striking ``203(d)'' and
inserting ``202(f)'', and
(B) in subparagraphs (C), (D), and (E) by striking ``203''
and inserting ``202(f)''.
(11)(A) Section 525 of the Ticket to Work and Work
Incentives Improvement Act of 1999 (Public Law 106-170; 113
Stat. 1928) is
[[Page H10841]]
amended by striking ``7200'' and inserting ``7201''.
(B) Section 532(c)(2) of such Act (113 Stat. 1930) is
amended--
(i) in subparagraph (D), by striking ``341(d)(3)'' and
inserting ``341(d)'', and
(ii) in subparagraph (Q), by striking ``954(c)(1)(B)(iii)
and inserting ``954(c)(1)(B)''.
SEC. 618. ADDITIONAL CORRECTIONS.
(a) Amendments Related to Section 202 of the Economic
Growth and Tax Relief Reconciliation Act of 2001.--
(1) Subsection (h) of section 23 is amended--
(A) by striking ``subsection (a)(1)(B)'' and inserting
``subsection (a)(3)'', and
(B) by adding at the end the following new flush sentence:
``If any amount as increased under the preceding sentence is
not a multiple of $10, such amount shall be rounded to the
nearest multiple of $10.''
(2) Subsection (f) of section 137 is amended by adding at
the end the following new flush sentence:
``If any amount as increased under the preceding sentence is
not a multiple of $10, such amount shall be rounded to the
nearest multiple of $10.''
(b) Amendments Related to Section 204 of the Economic
Growth and Tax Relief Reconciliation Act of 2001.--Section
21(d)(2) is amended--
(1) in subparagraph (A) by striking ``$200'' and inserting
``$250'', and
(2) in subparagraph (B) by striking ``$400'' and inserting
``$500''.
(c) Effective Date.--The amendments made by this section
shall take effect as if included in the provisions of the
Economic Growth and Tax Relief Reconciliation Act of 2001 to
which they relate.
TITLE VII--UNEMPLOYMENT ASSISTANCE
SEC. 701. SHORT TITLE.
This title may be cited as the ``Temporary Extended
Unemployment Compensation Act of 2001''.
SEC. 702. FEDERAL-STATE AGREEMENTS.
(a) In General.--Any State which desires to do so may enter
into and participate in an agreement under this title with
the Secretary of Labor (in this title referred to as the
``Secretary''). Any State which is a party to an agreement
under this title may, upon providing 30 days written notice
to the Secretary, terminate such agreement.
(b) Provisions of Agreement.--Any agreement under
subsection (a) shall provide that the State agency of the
State will make payments of temporary extended unemployment
compensation to individuals who--
(1) have exhausted all rights to regular compensation under
the State law or under Federal law with respect to a benefit
year (excluding any benefit year that ended before March 15,
2001);
(2) have no rights to regular compensation or extended
compensation with respect to a week under such law or any
other State unemployment compensation law or to compensation
under any other Federal law;
(3) are not receiving compensation with respect to such
week under the unemployment compensation law of Canada; and
(4) filed an initial claim for regular compensation on or
after March 15, 2001.
(c) Exhaustion of Benefits.--For purposes of subsection
(b)(1), an individual shall be deemed to have exhausted such
individual's rights to regular compensation under a State law
when--
(1) no payments of regular compensation can be made under
such law because such individual has received all regular
compensation available to such individual based on employment
or wages during such individual's base period; or
(2) such individual's rights to such compensation have been
terminated by reason of the expiration of the benefit year
with respect to which such rights existed.
(d) Weekly Benefit Amount, Etc.--For purposes of any
agreement under this title--
(1) the amount of temporary extended unemployment
compensation which shall be payable to any individual for any
week of total unemployment shall be equal to the amount of
the regular compensation (including dependents' allowances)
payable to such individual during such individual's benefit
year under the State law for a week of total unemployment;
(2) the terms and conditions of the State law which apply
to claims for regular compensation and to the payment thereof
shall apply to claims for temporary extended unemployment
compensation and the payment thereof, except--
(A) that an individual shall not be eligible for temporary
extended unemployment compensation under this title unless,
in the base period with respect to which the individual
exhausted all rights to regular compensation under the State
law, the individual had 20 weeks of full-time insured
employment or the equivalent in insured wages, as determined
under the provisions of the State law implementing section
202(a)(5) of the Federal-State Extended Unemployment
Compensation Act of 1970 (26 U.S.C. 3304 note); and
(B) where otherwise inconsistent with the provisions of
this title or with the regulations or operating instructions
of the Secretary promulgated to carry out this title; and
(3) the maximum amount of temporary extended unemployment
compensation payable to any individual for whom a temporary
extended unemployment compensation account is established
under section 703 shall not exceed the amount established in
such account for such individual.
(e) Election by States.--Notwithstanding any other
provision of Federal law (and if State law permits), the
Governor of a State that is in an extended benefit period may
provide for the payment of temporary extended unemployment
compensation in lieu of extended compensation to individuals
who otherwise meet the requirements of this section. Such an
election shall not require a State to trigger off an extended
benefit period.
SEC. 703. TEMPORARY EXTENDED UNEMPLOYMENT COMPENSATION
ACCOUNT.
(a) In General.--Any agreement under this title shall
provide that the State will establish, for each eligible
individual who files an application for temporary extended
unemployment compensation, a temporary extended unemployment
compensation account with respect to such individual's
benefit year.
(b) Amount in Account.--
(1) In general.--The amount established in an account under
subsection (a) shall be equal to the lesser of--
(A) 50 percent of the total amount of regular compensation
(including dependents' allowances) payable to the individual
during the individual's benefit year under such law, or
(B) 13 times the individual's average weekly benefit amount
for the benefit year.
(2) Reduction for extended benefits.--The amount in an
account under paragraph (1) shall be reduced (but not below
zero) by the aggregate amount of extended compensation (if
any) received by such individual relating to the same benefit
year under the Federal-State Extended Unemployment
Compensation Act of 1970 (26 U.S.C. 3304 note).
(3) Weekly benefit amount.--For purposes of this
subsection, an individual's weekly benefit amount for any
week is the amount of regular compensation (including
dependents' allowances) under the State law payable to such
individual for such week for total unemployment.
SEC. 704. PAYMENTS TO STATES HAVING AGREEMENTS FOR THE
PAYMENT OF TEMPORARY EXTENDED UNEMPLOYMENT
COMPENSATION.
(a) General Rule.--There shall be paid to each State that
has entered into an agreement under this title an amount
equal to 100 percent of the temporary extended unemployment
compensation paid to individuals by the State pursuant to
such agreement.
(b) Treatment of Reimbursable Compensation.--No payment
shall be made to any State under this section in respect of
any compensation to the extent the State is entitled to
reimbursement in respect of such compensation under the
provisions of any Federal law other than this title or
chapter 85 of title 5, United States Code. A State shall not
be entitled to any reimbursement under such chapter 85 in
respect of any compensation to the extent the State is
entitled to reimbursement under this title in respect of such
compensation.
(c) Determination of Amount.--Sums payable to any State by
reason of such State having an agreement under this title
shall be payable, either in advance or by way of
reimbursement (as may be determined by the Secretary), in
such amounts as the Secretary estimates the State will be
entitled to receive under this title for each calendar month,
reduced or increased, as the case may be, by any amount by
which the Secretary finds that the Secretary's estimates for
any prior calendar month were greater or less than the
amounts which should have been paid to the State. Such
estimates may be made on the basis of such statistical,
sampling, or other method as may be agreed upon by the
Secretary and the State agency of the State involved.
SEC. 705. FINANCING PROVISIONS.
(a) In General.--Funds in the extended unemployment
compensation account (as established by section 905(a) of the
Social Security Act (42 U.S.C. 1105(a)) of the Unemployment
Trust Fund (as established by section 904(a) of such Act (42
U.S.C. 1104(a)) shall be used for the making of payments to
States having agreements entered into under this title.
(b) Certification.--The Secretary shall from time to time
certify to the Secretary of the Treasury for payment to each
State the sums payable to such State under this title. The
Secretary of the Treasury, prior to audit or settlement by
the General Accounting Office, shall make payments to the
State in accordance with such certification, by transfers
from the extended unemployment compensation account (as so
established) to the account of such State in the Unemployment
Trust Fund (as so established).
(c) Assistance to States.--There are appropriated out of
the employment security administration account (as
established by section 901(a) of the Social Security Act (42
U.S.C. 1101(a)) of the Unemployment Trust Fund, without
fiscal year limitation, such funds as may be necessary for
purposes of assisting States (as provided in title III of the
Social Security Act (42 U.S.C. 501 et seq.)) in meeting the
costs of administration of agreements under this title.
(d) Appropriations for Certain Payments.--There are
appropriated from the general fund of the Treasury, without
fiscal year limitation, to the extended unemployment
compensation account (as so established) of the Unemployment
Trust Fund (as so established) such sums as the Secretary
[[Page H10842]]
estimates to be necessary to make the payments under this
section in respect of--
(1) compensation payable under chapter 85 of title 5,
United States Code; and
(2) compensation payable on the basis of services to which
section 3309(a)(1) of the Internal Revenue Code of 1986
applies.
Amounts appropriated pursuant to the preceding sentence shall
not be required to be repaid.
SEC. 706. FRAUD AND OVERPAYMENTS.
(a) In General.--If an individual knowingly has made, or
caused to be made by another, a false statement or
representation of a material fact, or knowingly has failed,
or caused another to fail, to disclose a material fact, and
as a result of such false statement or representation or of
such nondisclosure such individual has received an amount of
temporary extended unemployment compensation under this title
to which he was not entitled, such individual--
(1) shall be ineligible for further temporary extended
unemployment compensation under this title in accordance with
the provisions of the applicable State unemployment
compensation law relating to fraud in connection with a claim
for unemployment compensation; and
(2) shall be subject to prosecution under section 1001 of
title 18, United States Code.
(b) Repayment.--In the case of individuals who have
received amounts of temporary extended unemployment
compensation under this title to which they were not
entitled, the State shall require such individuals to repay
the amounts of such temporary extended unemployment
compensation to the State agency, except that the State
agency may waive such repayment if it determines that--
(1) the payment of such temporary extended unemployment
compensation was without fault on the part of any such
individual; and
(2) such repayment would be contrary to equity and good
conscience.
(c) Recovery by State Agency.--
(1) In general.--The State agency may recover the amount to
be repaid, or any part thereof, by deductions from any
temporary extended unemployment compensation payable to such
individual under this title or from any unemployment
compensation payable to such individual under any Federal
unemployment compensation law administered by the State
agency or under any other Federal law administered by the
State agency which provides for the payment of any assistance
or allowance with respect to any week of unemployment, during
the 3-year period after the date such individuals received
the payment of the temporary extended unemployment
compensation to which they were not entitled, except that no
single deduction may exceed 50 percent of the weekly benefit
amount from which such deduction is made.
(2) Opportunity for hearing.--No repayment shall be
required, and no deduction shall be made, until a
determination has been made, notice thereof and an
opportunity for a fair hearing has been given to the
individual, and the determination has become final.
(d) Review.--Any determination by a State agency under this
section shall be subject to review in the same manner and to
the same extent as determinations under the State
unemployment compensation law, and only in that manner and to
that extent.
SEC. 707. DEFINITIONS.
In this title, the terms ``compensation'', ``regular
compensation'', ``extended compensation'', ``additional
compensation'', ``benefit year'', ``base period'', ``State'',
``State agency'', ``State law'', and ``week'' have the
respective meanings given such terms under section 205 of the
Federal-State Extended Unemployment Compensation Act of 1970
(26 U.S.C. 3304 note).
SEC. 708. APPLICABILITY.
An agreement entered into under this title shall apply to
weeks of unemployment--
(1) beginning after the date on which such agreement is
entered into; and
(2) ending before January 1, 2003.
SEC. 709. SPECIAL REED ACT TRANSFER IN FISCAL YEAR 2002.
(a) Repeal of Certain Provisions Added by the Balanced
Budget Act of 1997.--
(1) In general.--The following provisions of section 903 of
the Social Security Act (42 U.S.C. 1103) are repealed:
(A) Paragraph (3) of subsection (a).
(B) The last sentence of subsection (c)(2).
(2) Savings provision.--Any amounts transferred before the
date of enactment of this Act under the provision repealed by
paragraph (1)(A) shall remain subject to section 903 of the
Social Security Act, as last in effect before such date of
enactment.
(b) Special Transfer in Fiscal Year 2002.--Section 903 of
the Social Security Act is amended by adding at the end the
following:
``Special Transfer in Fiscal Year 2002
``(d)(1) The Secretary of the Treasury shall transfer (as
of the date determined under paragraph (5)) from the Federal
unemployment account to the account of each State in the
Unemployment Trust Fund the amount determined with respect to
such State under paragraph (2).
``(2) The amount to be transferred under this subsection to
a State account shall (as determined by the Secretary of
Labor and certified by such Secretary to the Secretary of the
Treasury) be equal to--
``(A) the amount which would have been required to have
been transferred under this section to such account at the
beginning of fiscal year 2002 if--
``(i) section 709(a)(1) of the Temporary Extended
Unemployment Compensation Act of 2001 had been enacted before
the close of fiscal year 2001, and
``(ii) section 5402 of Public Law 105-33 (relating to
increase in Federal unemployment account ceiling) had not
been enacted,
minus
``(B) the amount which was in fact transferred under this
section to such account at the beginning of fiscal year 2002.
``(3)(A) Except as provided in paragraph (4), amounts
transferred to a State account pursuant to this subsection
may be used only in the payment of cash benefits--
``(i) to individuals with respect to their unemployment,
and
``(ii) which are allowable under subparagraph (B) or (C).
``(B)(i) At the option of the State, cash benefits under
this paragraph may include amounts which shall be payable
as--
``(I) regular compensation, or
``(II) additional compensation, upon the exhaustion of any
temporary extended unemployment compensation (if such State
has entered into an agreement under the Temporary Extended
Unemployment Compensation Act of 2001), for individuals
eligible for regular compensation under the unemployment
compensation law of such State.
``(ii) Any additional compensation under clause (i) may not
be taken into account for purposes of any determination
relating to the amount of any extended compensation for which
an individual might be eligible.
``(C)(i) At the option of the State, cash benefits under
this paragraph may include amounts which shall be payable to
1 or more categories of individuals not otherwise eligible
for regular compensation under the unemployment compensation
law of such State, including those described in clause (iii).
``(ii) The benefits paid under this subparagraph to any
individual may not, for any period of unemployment, exceed
the maximum amount of regular compensation authorized under
the unemployment compensation law of such State for that same
period, plus any additional compensation (described in
subparagraph (B)(i)) which could have been paid with respect
to that amount.
``(iii) The categories of individuals described in this
clause include the following:
``(I) Individuals who are seeking, or available for, only
part-time (and not full-time) work.
``(II) Individuals who would be eligible for regular
compensation under the unemployment compensation law of such
State under an alternative base period.
``(D) Amounts transferred to a State account under this
subsection may be used in the payment of cash benefits to
individuals only for weeks of unemployment beginning after
the date of enactment of this subsection.
``(4) Amounts transferred to a State account under this
subsection may be used for the administration of its
unemployment compensation law and public employment offices
(including in connection with benefits described in paragraph
(3) and any recipients thereof), subject to the same
conditions as set forth in subsection (c)(2) (excluding
subparagraph (B) thereof, and deeming the reference to
`subsections (a) and (b)' in subparagraph (D) thereof to
include this subsection).
``(5) Transfers under this subsection shall be made by
December 31, 2001, unless this paragraph is not enacted until
after that date, in which case such transfers shall be made
within 10 days after the date of enactment of this
paragraph.''
(c) Limitations on Transfers.--Section 903(b) of the Social
Security Act shall apply to transfers under section 903(d) of
such Act (as amended by this section). For purposes of the
preceding sentence, such section 903(b) shall be deemed to be
amended as follows:
(1) By substituting ``the transfer date described in
subsection (d)(5)'' for ``October 1 of any fiscal year''.
(2) By substituting ``remain in the Federal unemployment
account'' for ``be transferred to the Federal unemployment
account as of the beginning of such October 1''.
(3) By substituting ``fiscal year 2002 (after the transfer
date described in subsection (d)(5))'' for ``the fiscal year
beginning on such October 1''.
(4) By substituting ``under subsection (d)'' for ``as of
October 1 of such fiscal year''.
(5) By substituting ``(as of the close of fiscal year
2002)'' for ``(as of the close of such fiscal year)''.
(d) Technical Amendments.--(1) Sections 3304(a)(4)(B) and
3306(f)(2) of the Internal Revenue Code of 1986 are amended
by inserting ``or 903(d)(4)'' before ``of the Social Security
Act''.
(2) Section 303(a)(5) of the Social Security Act is amended
in the second proviso by inserting ``or 903(d)(4)'' after
``903(c)(2)''.
(e) Regulations.--The Secretary of Labor may prescribe any
operating instructions or regulations necessary to carry out
this section and the amendments made by this section.
TITLE VIII--DISPLACED WORKER HEALTH INSURANCE CREDIT
SEC. 801. DISPLACED WORKER HEALTH INSURANCE CREDIT.
(a) In General.--Subchapter B of chapter 65 is amended by
inserting after section 6428 the following new section:
[[Page H10843]]
``SEC. 6429. DISPLACED WORKER HEALTH INSURANCE CREDIT.
``(a) In General.--In the case of an individual, there
shall be allowed as a credit against the tax imposed by
subtitle A an amount equal to 60 percent of the amount paid
during the taxable year for coverage for the taxpayer, the
taxpayer's spouse, and dependents of the taxpayer under
qualified health insurance during eligible coverage months.
``(b) Only 12 Eligible Coverage Months.--The number of
eligible coverage months taken into account under subsection
(a) for all taxable years shall not exceed 12.
``(c) Eligible Coverage Month.--For purposes of this
section--
``(1) In general.--The term `eligible coverage month' means
any month during 2002 or 2003 if, as of the first day of such
month--
``(A) the taxpayer is unemployed,
``(B) the taxpayer is covered by qualified health
insurance,
``(C) the premium for coverage under such insurance for
such month is paid by the taxpayer, and
``(D) the taxpayer does not have other specified coverage.
``(2) Special rules.--
``(A) Treatment of first month of employment.--The taxpayer
shall be treated as meeting the requirement of paragraph
(1)(A) for the first month beginning on or after the date
that the taxpayer ceases to be unemployed by reason of
beginning work for an employer.
``(B) Initial claim must be after march 15, 2001.--The
taxpayer shall not be treated as meeting the requirement of
paragraph (1)(A) with respect to any unemployment if the
initial claim for regular compensation for such unemployment
is filed on or before March 15, 2001.
``(C) Joint returns.--In the case of a joint return, the
requirements of paragraph (1) shall be treated as met if at
least 1 spouse satisfies such requirements.
``(3) Other specified coverage.--For purposes of this
subsection, an individual has other specified coverage for
any month if, as of the first day of such month--
``(A) Subsidized coverage.--
``(i) In general.--Such individual is covered under any
qualified health insurance under which at least 50 percent of
the cost of coverage (determined under section 4980B) is paid
or incurred by an employer (or former employer) of the
taxpayer or the taxpayer's spouse.
``(ii) Treatment of cafeteria plans and flexible spending
accounts.--For purposes of clause (i), the cost of benefits--
``(I) which are chosen under a cafeteria plan (as defined
in section 125(d)), or provided under a flexible spending or
similar arrangement, of such an employer, and
``(II) which are not includible in gross income under
section 106,
shall be treated as borne by such employer.
``(B) Coverage under medicare, medicaid, or schip.--Such
individual--
``(i) is entitled to benefits under part A of title XVIII
of the Social Security Act or is enrolled under part B of
such title, or
``(ii) is enrolled in the program under title XIX or XXI of
such Act.
``(C) Certain other coverage.--Such individual--
``(i) is enrolled in a health benefits plan under chapter
89 of title 5, United States Code, or
``(ii) is entitled to receive benefits under chapter 55 of
title 10, United States Code.
``(4) Determination of unemployment.--For purposes of
paragraph (1), an individual shall be treated as unemployed
during any period--
``(A) for which such individual is receiving unemployment
compensation (as defined in section 85(b)), or
``(B) for which such individual is certified by a State
agency (or by any other entity designated by the Secretary)
as otherwise being entitled to receive unemployment
compensation (as so defined) but for--
``(i) the termination of the period during which such
compensation was payable, or
``(ii) an exhaustion of such individual's rights to such
compensation.
``(d) Qualified Health Insurance.--For purposes of this
section, the term `qualified health insurance' means
insurance which constitutes medical care; except that such
term shall not include any insurance if substantially all of
its coverage is of excepted benefits described in section
9832(c).
``(e) Coordination With Advance Payments of Credit.--
``(1) Recapture of excess advance payments.--If any payment
is made by the Secretary under section 7527 during any
calendar year to a provider of qualified health insurance for
an individual, then the tax imposed by this chapter for the
individual's last taxable year beginning in such calendar
year shall be increased by the aggregate amount of such
payments.
``(2) Reconciliation of payments advanced and credit
allowed.--Any increase in tax under paragraph (1) shall not
be treated as tax imposed by this chapter for purposes of
determining the amount of any credit (other than the credit
allowed by subsection (a)) allowable under part IV of
subchapter A of chapter 1.
``(f) Special Rules.--
``(1) Coordination with other deductions.--Amounts taken
into account under subsection (a) shall not be taken into
account in determining any deduction allowed under section
162(l) or 213.
``(2) MSA distributions.--Amounts distributed from an
Archer MSA (as defined in section 220(d)) shall not be taken
into account under subsection (a).
``(3) Denial of credit to dependents.--No credit shall be
allowed under this section to any individual with respect to
whom a deduction under section 151 is allowable to another
taxpayer for a taxable year beginning in the calendar year in
which such individual's taxable year begins.
``(4) Credit treated as refundable credit.--For purposes of
this title, the credit allowed under this section shall be
treated as a credit allowable under subpart C of part IV of
subchapter A of chapter 1.
``(5) Regulations.--The Secretary may prescribe such
regulations and other guidance as may be necessary or
appropriate to carry out this section and section 7527.''.
(b) Increased Access to Health Insurance for Individuals
Eligible for Tax Credit.--Notwithstanding any other provision
of law, in applying section 2741 of the Public Health Service
Act (42 U.S.C. 300gg-41)) and any alternative State mechanism
under section 2744 of such Act (42 U.S.C.300gg-44)), in
determining who is an eligible individual (as defined in
section 2741(b) of such Act) in the case of an individual who
may be covered by insurance for which credit is allowable
under section 6429 of the Internal Revenue Code of 1986 for
an eligible coverage month, if the individual seeks to obtain
health insurance coverage under such section during an
eligible coverage month under such section--
(1) paragraph (1) of such section 2741(b) shall be applied
as if any reference to 18 months is deemed a reference to 12
months, and
(2) paragraphs (4) and (5) of such section 2741(b) shall
not apply.
(c) Information Reporting.--
(1) In general.--Subpart B of part III of subchapter A of
chapter 61 (relating to information concerning transactions
with other persons) is amended by inserting after section
6050S the following new section:
``SEC. 6050T. RETURNS RELATING TO DISPLACED WORKER HEALTH
INSURANCE CREDIT.
``(a) Requirement of Reporting.--Every person--
``(1) who, in connection with a trade or business conducted
by such person, receives payments during any calendar year
from any individual for coverage of such individual or any
other individual under qualified health insurance (as defined
in section 6429(d)), and
``(2) who claims a reimbursement for an advance credit
amount,
shall, at such time as the Secretary may prescribe, make the
return described in subsection (b) with respect to each
individual from whom such payments were received or for whom
such a reimbursement is claimed.
``(b) Form and Manner of Returns.--A return is described in
this subsection if such return--
``(1) is in such form as the Secretary may prescribe, and
``(2) contains--
``(A) the name, address, and TIN of each individual
referred to in subsection (a),
``(B) the aggregate of the advance credit amounts provided
to such individual and for which reimbursement is claimed,
``(C) the number of months for which such advance credit
amounts are so provided, and
``(D) such other information as the Secretary may
prescribe.
``(c) Statements To Be Furnished to Individuals With
Respect to Whom Information Is Required.--Every person
required to make a return under subsection (a) shall furnish
to each individual whose name is required to be set forth in
such return a written statement showing--
``(1) the name and address of the person required to make
such return and the phone number of the information contact
for such person, and
``(2) the information required to be shown on the return
with respect to such individual.
The written statement required under the preceding sentence
shall be furnished on or before January 31 of the year
following the calendar year for which the return under
subsection (a) is required to be made.
``(d) Advance Credit Amount.--For purposes of this section,
the term `advance credit amount' means an amount for which
the person can claim a reimbursement pursuant to a program
established by the Secretary under section 7527.''
(2) Assessable penalties.--
(A) Subparagraph (B) of section 6724(d)(1) (relating to
definitions) is amended by redesignating clauses (xi) through
(xvii) as clauses (xii) through (xviii), respectively, and by
inserting after clause (x) the following new clause:
``(xi) section 6050T (relating to returns relating to
displaced worker health insurance credit),''.
(B) Paragraph (2) of section 6724(d) is amended by striking
``or'' at the end of subparagraph (Z), by striking the period
at the end of subparagraph (AA) and inserting ``, or'', and
by adding after subparagraph (AA) the following new
subparagraph:
``(BB) section 6050T (relating to returns relating to
displaced worker health insurance credit).''returns relating
to payments for qualified health insurance).''
(3) Clerical amendment.--The table of sections for subpart
B of part III of subchapter A of chapter 61 is amended by
inserting after the item relating to section 6050S the
following new item:
[[Page H10844]]
``Sec. 6050T. Returns relating to displaced worker health insurance
credit.''
(d) Conforming Amendments.--
(1) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting before the period ``, or
from section 6429 of such Code''.
(2) The table of sections for subchapter B of chapter 65 is
amended by adding at the end the following new item:
``Sec. 6429. Displaced worker health insurance credit.''
(e) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2001.
SEC. 802. ADVANCE PAYMENT OF DISPLACED WORKER HEALTH
INSURANCE CREDIT.
(a) In General.--Chapter 77 (relating to miscellaneous
provisions) is amended by adding at the end the following new
section:
``SEC. 7527. ADVANCE PAYMENT OF DISPLACED WORKER HEALTH
INSURANCE CREDIT.
``(a) General Rule.--The Secretary shall establish a
program for making payments on behalf of eligible individuals
to providers of health insurance for such individuals.
``(b) Eligible Individual.--For purposes of this section,
the term `eligible individual' means any individual for whom
a qualified health insurance credit eligibility certificate
is in effect.
``(c) Qualified Health Insurance Credit Eligibility
Certificate.--For purposes of this section, a qualified
health insurance credit eligibility certificate is a
statement certified by a State agency (or by any other entity
designated by the Secretary) which--
``(1) certifies that the individual was unemployed (within
the meaning of section 6429) as of the first day of any
month, and
``(2) provides such other information as the Secretary may
require for purposes of this section.''
(c) Clerical Amendment.--The table of sections for chapter
77 is amended by adding at the end the following new item:
``Sec. 7527. Advance payment of displaced worker health insurance
credit.''
(c) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
TITLE IX--EMPLOYMENT AND TRAINING ASSISTANCE AND TEMPORARY HEALTH CARE
COVERAGE ASSISTANCE
SEC. 901. EMPLOYMENT AND TRAINING ASSISTANCE AND TEMPORARY
HEALTH CARE COVERAGE ASSISTANCE.
(a) In General.--Section 173(a) of the Workforce Investment
Act of 1998 (29 U.S.C. 2918(a)) is amended--
(1) in paragraph (2), by striking ``and'' at the end;
(2) in paragraph (3), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(4) to the Governor of any State or outlying area who
applies for assistance under subsection (f) to provide
employment and training assistance and temporary health care
coverage assistance to workers affected by major economic
dislocations, such as plant closures, mass layoffs, or
multiple layoffs, including those dislocations caused by the
terrorist attacks of September 11, 2001.''.
(b) Requirements.--Section 173 of the Workforce Investment
Act of 1998 (29 U.S.C. 2918) is amended by adding at the end
the following:
``(f) Additional Relief for Major Economic Dislocations.--
``(1) Grant recipient eligibility.--
``(A) In general.--To be eligible to receive a grant under
subsection (a)(4), a Governor shall submit an application,
for assistance described in subparagraph (B), to the
Secretary at such time, in such manner, and containing such
information as the Secretary may require.
``(B) Types of assistance.--
``(i) In general.--Assistance described in this
subparagraph is--
``(I) employment and training assistance, including
employment and training activities described in section 134;
and
``(II) temporary health care coverage assistance described
in paragraph (4).
``(ii) Minimum allocation to temporary health care coverage
assistance.--Not less than 30 percent of the cost of
assistance requested in any application submitted under this
subsection shall consist of the cost for temporary health
care coverage assistance described in paragraph (4).
``(iii) Encouragement of certain types of health care
coverage.--In publishing requirements for applications under
this subsection, the Secretary shall encourage the use of
private health coverage alternatives.
``(C) Minimum award requirement for eligible states and
outlying areas.--
``(i) Requirements.--In any case in which the requirements
of this section are met in connection with one or more
applications of the Governor of any State or outlying area
for assistance described in subparagraph (B), the Governor--
``(I) shall be awarded at least 1 grant under subsection
(a)(4) pursuant to such applications, and
``(II) except as provided in clause (ii), shall be awarded
not less than $5,000,000 in total grants awarded under
(a)(4).
``(ii) Exception to minimum grant requirements.--The
Secretary may award to a Governor a total amount less than
the minimum total amount specified in clause (i)(II), as
appropriate, if the Governor--
``(I) requests less than such minimum total amount, or
``(II) fails to demonstrate to the Secretary that there are
a sufficient number of eligible recipients to justify the
awarding of grants in such minimum total amount.
``(2) State administration.--The Governor may designate one
or more local workforce investment boards or other entities
with the capability to respond to the circumstances relating
to the particular closure, layoff, or other dislocation to
administer the grant under subsection (a)(4).
``(3) Participant eligibility.--An individual shall be
eligible to receive assistance described in paragraph (1)(B)
under a grant awarded under subsection (a)(4) if such
individual is a dislocated worker and the Governor has
certified that a major economic dislocation, such as a plant
closure, mass layoff, or multiple layoff, including a
dislocation caused by the terrorist attacks of September 11,
2001, contributed importantly to the dislocation.
``(4) Temporary health care coverage assistance.--
``(A) In general.--Temporary health care coverage
assistance described in this paragraph consists of health
care coverage premium assistance provided to qualified
individuals under this paragraph with respect to premiums for
coverage for themselves, for their spouses, for their
dependents, or for any combination thereof, other than
premiums for excluded health insurance coverage.
``(B) Qualified individuals.--For purposes of this
paragraph--
``(i) In general.--Subject to clause (ii), a qualified
individual is an individual who--
``(I) is a dislocated worker referred to in paragraph (3)
with respect to whom the Governor has made the certification
regarding the dislocation as required under such paragraph,
and
``(II) is receiving or has received employment and training
assistance as described in paragraph (1)(B)(i)(I).
``(ii) Limitation.--An individual shall not be treated as a
qualified individual if--
``(I) such individual is eligible for coverage under the
program under title XIX of the Social Security Act applicable
in the State or outlying area, or
``(II) such individual is eligible for coverage under the
program under title XXI of such Act applicable in the State
or outlying area,
unless such eligibility is effective solely in connection
with eligibility for health care coverage premium assistance
under a program established by the Governor in connection
with temporary health care coverage assistance received under
this subsection.
``(iii) Construction.--
``(I) Permitting coverage through enrollment in medicaid or
schip.--Nothing in this subsection shall be construed as
preventing a State from using funds made available by reason
of subsection (a)(4) to provide health care coverage through
enrollment in the program under title XIX (relating to
medicaid) or in the program under title XXI (relating to
SCHIP) of the Social Security Act, but only in the case of
individuals who are not otherwise eligible for coverage under
either such program.
``(II) Not affecting eligibility for assistance.--An
individual shall not be treated for purposes of this
subsection as being eligible for coverage under either such
program (and thereby not eligible for assistance under this
subsection) merely on the basis that the State provides
assistance under this subsection through coverage under
either such program.
``(C) Limitation on entitlement.--Nothing in this
subsection shall be construed as establishing any entitlement
of qualified individuals to premium assistance under this
subsection.
``(D) Concurrence and consultation.--In connection with any
temporary health care coverage assistance provided pursuant
to this paragraph--
``(i) if the Secretary determines that health care coverage
premium assistance provided through title XIX or XXI of the
Social Security Act is a substantial component of the
assistance provided, the Secretary shall act in concurrence
with the Secretary of Health and Human Services, and
``(ii) in any other case, the Secretary shall consult with
the Secretary of Health and Human Services to the extent that
such assistance affects programs administered by or under the
Secretary of Health and Human Services.
``(E) Use of funds.--Temporary health care coverage
assistance provided pursuant to this subsection shall
supplement and may not supplant any other State or local
funds used to provide health care coverage and may not be
included in determining the amount of non-Federal
contributions required under any program.
``(F) Definitions.--For purposes of this paragraph--
``(i) Excluded health care coverage.--The term `excluded
health care coverage' means coverage under--
``(I) title XVIII of the Social Security Act,
``(II) chapter 55 of title 10, United States Code,
``(III) chapter 17 of title 38, United States Code,
``(IV) chapter 89 of title 5, United States Code (other
than coverage which is comparable to continuation coverage
under section 4980B of the Internal Revenue Code of 1986), or
[[Page H10845]]
``(V) the Indian Health Care Improvement Act.
Such term also includes coverage under a qualified long-term
care insurance contract and excepted benefits described in
section 733(c) of the Employee Retirement Income Security Act
of 1974.
``(ii) Premium.--The term `premium' means, in connection
with health care coverage, the premium which would (but for
this section) be charged for the cost of coverage.
``(5) Appropriations.--
``(A) In general.--There is hereby appropriated, from any
amounts in the Treasury not otherwise appropriated,
$4,000,000,000 for the period consisting of fiscal years
2002, 2003, and 2004 for the award of grants under subsection
(a)(4) in accordance with this section.
``(B) Availability.--Amounts appropriated pursuant to
subparagraph (A) for each fiscal year--
``(i) are in addition to amounts made available under
section 132(a)(2)(A) or any other provision of law to carry
out this section; and
``(ii) notwithstanding section 189(g)(1), shall remain
available for obligation by the Secretary from the date of
the enactment of this subsection through each succeeding
fiscal year, except that, notwithstanding section 189(g)(2),
no funds are hereby available for expenditure after June 30,
2004.''.
TITLE X--TEMPORARY STATE HEALTH CARE ASSISTANCE
SEC. 1001. TEMPORARY STATE HEALTH CARE ASSISTANCE.
(a) In General.--Title XXI of the Social Security Act is
amended by adding at the end the following new section:
``SEC. 2111. TEMPORARY STATE HEALTH CARE ASSISTANCE.
``(a) In General.--For the purpose of providing allotments
to States under this section, there are hereby appropriated,
out of any funds in the Treasury not otherwise appropriated,
$4,599,667,448. Such funds shall be available for expenditure
by the State through the end of 2002. This section
constitutes budget authority in advance of appropriations
Acts and represents the obligation of the Federal Government
to provide for the payment to States of amounts provided
under this section.
``(b) Allotment.--Funds appropriated under subsection (a)
shall be allotted by the Secretary among the States in
accordance with the following table:
------------------------------------------------------------------------
``State Allotment (in dollars)
------------------------------------------------------------------------
Alabama 50,746,770
Alaska 31,934,026
Arizona 68,594,677
Arkansas 38,203,601
California 482,591,746
Colorado 37,469,775
Connecticut 60,039,005
Delaware 10,355,807
District of Columbia 18,321,834
Florida 164,619,369
Georgia 118,754,564
Hawaii 12,827,163
Idaho 13,031,700
Illinois 175,505,956
Indiana 66,067,368
Iowa 31,521,201
Kansas 27,288,967
Kentucky 82,759,133
Louisiana 83,907,301
Maine 22,650,838
Maryland 60,347,066
Massachusetts 121,971,140
Michigan 156,479,213
Minnesota 113,966,453
Mississippi 55,335,225
Missouri 74,675,436
Montana 10,224,652
Nebraska 31,582,786
Nevada 14,695,973
New Hampshire 15,482,962
New Jersey 115,880,093
New Mexico 39,204,714
New York 573,999,663
North Carolina 189,333,723
North Dakota 8,915,675
Ohio 166,006,936
Oklahoma 48,914,626
Oregon 71,160,353
Pennsylvania 227,183,255
Rhode Island 45,001,680
South Carolina 94,789,740
South Dakota 19,951,788
Tennessee 102,845,128
Texas 289,526,532
Utah 30,860,915
Vermont 10,291,090
Virginia 67,232,217
Washington 110,377,264
West Virginia 31,120,804
Wisconsin 93,089,086
Wyoming 12,030,459
------------------------------------------------------------------------
``(c) Use of Funds.--
``(1) In general.--Funds appropriated under this section
may be used by a State only to provide health care items and
services (other than types of items and services for which
Federal financial participation is prohibited under this
title or title XIX).
``(2) Limitation.--Funds so appropriated may not be used to
match other Federal expenditures or in any other manner that
results in the expenditure of Federal funds in excess of the
amounts provided under this section.
``(d) Payment to States.--Funds made available under this
section shall be paid to the States in a form and manner and
time specified by the Secretary, based upon the submission of
such information as the Secretary may require. There is no
requirement for the expenditure of any State funds in order
to qualify for receipt of funds under this section. The
previous sections of this title shall not apply with respect
to funds provided under this section.
``(e) Definition.--For purposes of this section, the term
`State' means the 50 States and the District of Columbia.''.
(b) Repeal.--Effective as of January 1, 2003, section 2111
of the Social Security Act, as inserted by subsection (a), is
repealed.
TITLE XI--SOCIAL SECURITY HELD HARMLESS; BUDGETARY TREATMENT OF ACT
SEC. 1101. NO IMPACT ON SOCIAL SECURITY TRUST FUNDS.
(a) In General.--Nothing in this Act (or an amendment made
by this Act) shall be construed to alter or amend title II of
the Social Security Act (or any regulation promulgated under
that Act).
(b) Transfers.--
(1) Estimate of secretary.--The Secretary of the Treasury
shall annually estimate the impact that the enactment of this
Act has on the income and balances of the trust funds
established under section 201 of the Social Security Act (42
U.S.C. 401).
(2) Transfer of funds.--If, under paragraph (1), the
Secretary of the Treasury estimates that the enactment of
this Act has a negative impact on the income and balances of
the trust funds established under section 201 of the Social
Security Act (42 U.S.C. 401), the Secretary shall transfer,
not less frequently than quarterly, from the general revenues
of the Federal Government an amount sufficient so as to
ensure that the income and balances of such trust funds are
not reduced as a result of the enactment of this Act.
SEC. 1102. EMERGENCY DESIGNATION.
Congress designates as emergency requirements pursuant to
section 252(e) of the Balanced Budget and Emergency Deficit
Control Act of 1985 the following amounts:
(1) An amount equal to the amount by which revenues are
reduced by this Act below the recommended levels of Federal
revenues for fiscal year 2002, the total of fiscal years 2002
through 2006, and the total of fiscal years 2002 through
2011, provided in the conference report accompanying H. Con.
Res. 83, the concurrent resolution on the budget for fiscal
year 2002.
(2) Amounts equal to the amounts of new budget authority
and outlays provided in this Act in excess of the allocations
under section 302(a) of the Congressional Budget Act of 1974
to the Committee on Finance of the Senate for fiscal year
2002, the total of fiscal years 2002 through 2006, and the
total of fiscal years 2002 through 2011.
The SPEAKER pro tempore. Pursuant to House Resolution 320, the
gentleman from California (Mr. Thomas) and the gentleman from New York
(Mr. Rangel) each will control 1 hour.
The Chair recognizes the gentleman from California (Mr. Thomas).
Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, the last time we addressed a piece of legislation that
was designed to help us stimulate the economy, as requested by the
President, as Alan Greenspan had indicated, this economy needed some
help, and that perhaps by making some decisions in the tax and business
area we could assist the recovery. Equally important, those people who
lost their jobs, and, as we have come to realize now more and more
associated with the loss of job is the loss of health insurance, that
that had to be part of the package as well.
We started, as we normally do in the legislative process, by passing
a bill out of the House of Representatives. What then normally happens
is the Senate of the United States passes a piece of legislation, and,
if it is different in the House and the Senate, we go to a conference.
The conference then works out the difference between the two bills.
The House did its job. On October 24 we started the process by
passing our Stimulus and Recovery Act. The Senate did not do its job.
The Senate did not pass a bill. But all of us, trying to stimulate this
economy and help those who, through no fault of their own, are not now
employed or do not have either the wherewithal or the opportunity to
provide their families with health insurance, we decided to try to move
under a leadership umbrella.
Notwithstanding the Senate's inability to move legislation to get us
into a regular conference, we reached out and tried to create a
leadership conference that would try to operate under the same rules so
that we could address the very real need to help stimulate the economy
and answer those distressed workers.
We have worked long and hard, and I do have to say on the floor that
the chairman of the Senate Finance Committee on the other side worked
diligently. I believe he was required to follow rules of engagement
which made it
[[Page H10846]]
very difficult to come together. His staff worked long hours. We tried
to be as creative as we could under the restrictions placed on us, and
we did not ultimately succeed in producing a document that looked like
a conference between the House-passed bill and the pieces of
legislation that were brought from the Senate. For example, the Senate
finance-passed bill, which passed by an 11 to 10 vote, was one of the
vehicles that we looked at.
Notwithstanding that, those discussions, nevertheless, bore fruit,
and the legislation that you have before you tonight, and we will talk
about it in particular areas, has major modifications as though a
conference took place. So the House started by passing legislation, and
tonight we reach the culmination of what amounts to the result of a
conference, notwithstanding the fact that the Senate has not passed any
legislation in this area.
As we discuss the pieces of the bill, I do hope Members will focus on
how much the legislation changed between October 24 and today. That is
what normally happens when the House and the Senate get together.
The package represented here tonight in the legislation before you is
a significantly different package than what we presented on October 24,
and our job will be to enlighten both the Members and the American
public about how the President's intervention in the area of health
insurance has produced a significantly better package and how the House
leadership's willingness to make modifications on the stimulus side
has, in fact, produced a document that would look very much like a
conference report would normally look.
Mr. Speaker, I reserve the balance of my time.
ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE
The SPEAKER pro tempore (Mr. LaTourette). The Chair would again
advise all Members that the rules covering decorum in debate in the
House indicate that a factual description relating to Senate action or
inaction concerning a measure then under debate in the House are in
order but characterizations of those actions or inactions are not
allowed.
Mr. RANGEL. Mr. Speaker, I yield myself such time as I may consume.
12:40. 12:40, and 8 million people without work. Some of these people
have been described as being ``unproductive.'' But all of these people
have been promised that this Congress of this great Nation, that we
would not only feel their pain, but we would do something about it.
We waited patiently, because people have confidence in the President
and the Congress. When the flag went up, we saluted it; when we were
hit, we responded; and during the war, we are the patriots. But we kind
of felt that in order to stimulate the economy, that it was not just
tax relief.
Everyone agreed if it was temporary, if it was direct, if it could
stimulate, encourage investment, we should do it. Nobody said, nobody
said, that these 8 million people had to be held hostage until we did
it their way. That type of thinking never came up.
But, yes, we went into some kind of a conference, and we spent a lot
of time on taxes. And the chairman of the Committee on Ways and Means
would have to agree that there were a lot of concessions made,
concessions that we found unpleasant. But because we were determined
that we not leave this House of Representatives without doing something
for these 8 million people. We said that we agree with you on taxes, if
you agree with us on unemployment insurance and on health.
Well, it just seems like when you get to unemployment insurance, they
believe a block grant will take care of that. Trust the governors; they
will take care of it. Maybe some people are not eligible, maybe there
is not enough money, but trust the governors, they would do it.
Well, we said we will trust the House and we will trust the Senate
and we will just leave that alone, but let us get to the question of
health.
This is the funniest thing in the world, that we are talking about
extending health benefits for 1 year. We are talking about an existing
program that is used today by employers. We are talking about using a
system called COBRA and providing the funds so that the people who lost
their jobs will be able to still continue to get health insurance.
{time} 0045
But there are some people in this House that believe they do not like
the current system; that they do not believe there should be employer-
sponsored insurance programs; that what they really believe should
happen is that people who are out of work and need insurance, they need
credits, they need vouchers, they have to go shop and see where they
can get the best benefit for their dollar. They do not need these
Cadillac programs that Republicans and Democrats have as Members of
Congress; they need something cut back. And, of course, if they have
ailments and the HMO says it is a higher price, they will give 60
percent of it, but they better go find the rest of it.
I tried to figure, in this country, at this time of year, the dignity
of a person without a job, the pressures on a marriage, the inability
to look at your children and know that you do not have a job, that you
cannot pay their tuition, you cannot pay the mortgage. That is enough
for any American to lose their dignity. But when you know you are not
even currently covered for health insurance, that you do not know what
is going to happen to the rest of your family, and they tell you to go
out with the credit and shop; so I asked everyone, how do you do it?
And do my colleagues know something? I heard an explanation in the
Committee on Rules that I could not believe. You needed a lawyer to
figure out what to do with the credit. So I said immediately, let me
find out where this is in the bill, because I may not have understood
in the Committee on Rules, but before I came to this floor, you bet
your life I was going to find it. Who has page 100 of the Republican
bill? I thank the gentleman from Washington (Mr. McDermott).
This is all you need. Forget the complexities of it; forget how it
works. If you do not know what to do with an advance refundable tax
credit, not to worry. If you do not know what to do with a tax credit
and you are not working and you have no unemployment, no earnings
coming in, not to worry. Because under the Thomas bill, let me
emphasize, under the Thomas bill, because the Committee on Ways and
Means, like with most tax bills, had nothing to do with this; but that
is okay, the gentleman from California (Mr. Thomas) is a smart person.
Because, under the Thomas bill, the whole program shall be established
for making payments on behalf of the eligible individual by the
Secretary of the Treasury. Not the Secretary of Health and Human
Services, the Secretary of the Treasury.
So we got 2 hours of debate. Every so often, my colleagues will hear
me refer to page 100, because we have a lot of bright people in this
House, and they know just what to tell the Secretary to do. So do not
go to sleep; be alert. People are going to ask, what is in the health
bill? And remember, one does not have to study it. Hold on to page 100.
Mr. Speaker, I reserve the balance of my time.
Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume.
As we said on October 24, that was the bill that started the process.
If anyone wants to look at any of the other pages in the bill, they
will find out that on the health provision, there was $3 billion
provided, and on unemployment, there was 9.2. That bill had $12.2
billion directed toward the unemployed and health insurance for them.
In the bill we have in front of us tonight, thanks to the President
Bush health insurance credit, there is $18.2 billion for health, and
there is $19 billion for unemployment, for a total of $37.2 billion.
One may wave one page, but the unemployed and those who are looking for
health insurance think a $25 billion difference is real money. If the
House and the Senate do not act on this before we leave for our break,
all the one-page waving in the world will not help them out. This bill
will provide $37.2 billion.
Mr. Speaker, it is my pleasure to yield 2 minutes to the gentleman
from New York (Mr. Houghton), a member of the committee.
Mr. HOUGHTON. Mr. Speaker, there are many features of this bill. I
would like to talk about one, which happens to do with New York City;
and New York City, of course, was the focal
[[Page H10847]]
point of the bombing. Many people were killed. Buildings were
destroyed. This is a particular feature of this bill which I believe in
very strongly, and I would like to feel my other New York associates
would feel this way too.
I am not going to go through the details of this bill, because they
are quite technical in terms of expensing and tax-exempt private bonds
and things like that. But the end result, and I will make this very
brief, is that it is going to help the smaller businesses and the
people who have lived and shopped and started and thrived in lower New
York to come back, and that is the critical thing. Mr. Speaker, 20
million square feet of office space was lost, and we have to somehow
bring that back. I know that other States say, well, why is this
special for New York? New York was the focal point of the bombing, and
there was no point in avoiding that. We must help this city.
I think this is a good bill, it is a good feature, and I hope other
people will support it.
Mr. RANGEL. Mr. Speaker, I yield myself such time as I may consume.
I think I have not made myself clear, Mr. Speaker. I asked people to
look for page 100 to establish what the program was, not how much money
was there. Who cares how much money is there if we do not know how to
get it? So please, take a look at page 100. That is called the health
program. We can put lipstick on the page, but we cannot call it a lady.
This is no health program.
Mr. Speaker, I yield 2 minutes to the gentleman from California (Mr.
Matsui), a senior member of the committee; and he knows a health
program when he sees one.
Mr. MATSUI. Mr. Speaker, I thank the gentleman from New York (Mr.
Rangel), the ranking Democrat on the Committee on Ways and Means, for
yielding me this time.
This bill will not become law; and I think the majority will probably
be very happy about that, because there is no way that this
legislation, the Thomas bill, will have anything to do with stimulating
the U.S. economy. The reason for it is because it is based upon a wrong
premise. Essentially what we have right now is a lack of consumer
confidence, we have an underutilization of plant capacity, and our
exports are down because our foreign competitors are not buying. So the
bill itself will have nothing to do with making the economy better.
What is interesting is that the gentleman from California (Mr.
Thomas), in his legislation, makes some modifications in the corporate
minimum tax; but basically, he puts a huge hole in it. It has something
on the operating losses in subpart F, which has nothing to do with
stimulating the economy. Essentially in this bill, 85 percent of the
$260 billion over the next 5 years will be spent in the form of tax
cuts to corporations or wealthy individuals. Only about 15 percent of
it goes to the unemployed and those people that need health insurance.
This is just a back-door way of getting the tax cuts that the business
community did not get in the June tax bill.
I have to say, what is very offensive about this is the fact that it
comes from the Social Security payroll taxes. That is the problem. It
comes from Social Security. So using Social Security payroll taxes, it
comes from the lady who is a janitor or the lady who is the elevator
operator, their tough-earned money, to pay for major tax cuts for big
corporations. I think that is outrageous. They are lucky that this bill
will not become law, because this bill will have nothing to do with
stimulating the economy. What this bill will basically do is pay off
those people that have made big contributions.
Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume.
I am looking at page 44 of a bill called the Rangel bill and it is
under the health insurance provision, and as some of my colleagues
might expect, do not be too surprised. This is what it says: ``Not
later than 60 days after the date of enactment of this act, the
Secretary of the Treasury, in consultation with the Secretary of Labor,
shall establish a program under which premium assistance is created.''
My colleagues are right. We have the Secretary of the Treasury, we
have the Secretary in consultation with the Secretary of Labor. It
really is a significant difference.
Mr. Speaker, it is my pleasure to yield 2\1/2\ minutes to the
gentlewoman from Connecticut (Mrs. Johnson), the chairman of the
Subcommittee on Health.
Mrs. JOHNSON of Connecticut. Mr. Speaker, we cannot put lipstick on a
paper and call it a lady, but we can put $25 billion additional dollars
on the table and help people who are unemployed. A total of $37.2
billion does make a difference in unemployment benefits, in health care
subsidies, absolutely. And in addition to this money, there is $4.6
billion for States to manage Medicaid costs or to put it into CHIP and
open up CHIP for people who need affordable coverage.
So not only is there $4.6 billion in addition to the $32 billion, but
there is $4 billion additional money for States to either use for
training expansion or other health care needs. They could use it for
community health centers so more people could be covered through that
avenue. There are all kinds of ways we can make certain that everyone
is covered. And remember, under the Democrat alternative offered by the
other body, the only people who got health insurance, the only people,
now listen to this, if you represent a rural area. The only people
under the other bill who got any health care subsidies were people who
worked for employers who were covered by COBRA. That means if you had
less than 20 employees, your guys did not get any help with health
insurance, not any, zero.
How could my colleagues hold out that their bill offered unemployment
compensation and health insurance to those laid off as a result of this
recession when, in fact, anyone who worked for an employer with less
than 20 employees got zero, zero, zero, zero. That is wrong. It is not
truthful.
We do provide subsidies for everyone. If I work for a small employer,
he has health insurance, I get laid off, I get 60 percent of the
premium costs. If I work for a small employer, as many people do in my
district, I pay 50 percent of my premiums while I am working. I get
laid off, the government pays 60 percent of the premiums. If I work for
a small employer who does not provide health insurance, I buy my own
health insurance, I get laid off, I get 60 percent.
Everyone, everyone gets unemployment compensation, 13 additional
weeks, and flexible money to increase benefits if that is what the
State needs, and everyone under this bill gets health insurance
subsidies, 60 percent of premiums.
Do not let politics prevent people from getting the help they need
during this recession, complicated by the terrorist attack of September
11. Put rhetoric aside. Give people real help.
Mr. RANGEL. Mr. Speaker, I yield myself such time as I may consume.
The gentleman from California, the chairman of the Committee on Ways
and Means, referred to the Rangel bill. The gentlewoman from
Connecticut referred to the Rangel bill. The only people that do not
refer to the Rangel bill is the majority in the Committee on Rules that
denied us the opportunity to discuss the Rangel bill. So all we have is
the so-called Thomas bill.
But if we really get past the first page of the bill that we wanted
to have as a substitute, that we wanted to debate, that we wanted to
see which one was the best so we have options, yes, we start off, I say
to the gentleman from California (Mr. Thomas), on page 44 with the
Secretary of the Treasury. But then we go to 45, 46, 47, 48, 49, 50,
51, 52, and all up to 54. This is what we call a program.
{time} 0100
Mr. Speaker, I yield 3 minutes to the gentleman from Michigan (Mr.
Levin).
(Mr. LEVIN asked and was given permission to revise and extend his
remarks.)
Mr. LEVIN. Mr. Speaker, I beg to differ with the chairman. This
matter started on the wrong foot. If they expect a bipartisan product,
start on a bipartisan basis in the House of Representatives.
They did not do that. Instead, they put together a bill on a strictly
partisan basis. They put together a bill that was heavily taxed, had a
slender amount of attention to unemployment comp and health insurance,
and then they say it is the Senate's fault. I beg to differ. The
President endorsed the strategy that they adopted; and now they are
bearing the fruits, the bitter fruits of a flawed strategy.
[[Page H10848]]
If Members want a bipartisan bill, start on a bipartisan basis in the
House of Representatives. They have not done that. So now they come
back with a bill that they say is better than the terrible bill, they
do not say terrible, but better than the bill that they passed here
loaded with tax breaks for the few and gave crumbs to the many who were
unemployed, and they parade this as something that is very strong.
Health insurance under their bill, for most, they have to be drawing
unemployment comp to get any help with health insurance. Two-thirds of
the people in this country who are laid off do not get unemployment
compensation.
They talk about $37 billion. Many of those billions of dollars in
unemployment comp are Reed Act monies. They have been told, do not
count $9 billion, because at the most a few billion will be used in the
first year. Most of that money cannot be used to change unemployment
comp because the legislatures are out of session, so under their bill,
so many millions of the unemployed in this country will get zero help
from their bill.
If Members want a bipartisan bill, start in the House of
Representatives. Do not blame Tom Daschle or the Democrats. The fault
lies with the Republican majority in the U.S. House of Representatives.
Mr. THOMAS. Mr. Speaker, it is my pleasure to yield 2 minutes to the
gentleman from Texas (Mr. Sam Johnson), someone who sits in the unique
position of being not only on the Committee on Ways and Means, but a
subcommittee chair on the Committee on Education and the Workforce, and
I think he has a clear perspective on the problem in front of us.
Mr. SAM JOHNSON of Texas. Mr. Speaker, what was just said is totally
out of line. We are providing health care to people. Americans want
action and they want it now, and for the second time in 2 months
Republicans in the House have passed a bill to stimulate the economy
and get Americans back to work.
This bill does strike a bipartisan compromise, and it provides health
insurance and benefits to those who lost their jobs. Unemployed workers
and their families need extra assistance in order to afford health care
coverage after they lose their jobs.
In addition, dislocated workers need access to job training programs,
child care, transportation, and other assistance in order to get back
to work quickly. That is what we are talking about is creating jobs.
National emergency grants which are in this bill are the right
approach. It allows each Governor to implement a seamless package of
assistance for the needs of dislocated workers in their State.
Importantly, it recognizes that a displaced worker's true goal
ultimately is the right to return to work. It gives people more of
their own money back, and it provides incentives to businesses to
invest in new equipment and create new jobs.
Mr. Speaker, the Members know there is $14 billion, $14 billion going
to low-income workers. There are stimulus payments. Also, the bill
includes national emergency grants, which I just talked about, which I
introduced, that target workers who are laid off by paying part of
their health insurance.
Can Members believe this: this government is going to pay 60 percent
of the health insurance costs of laid-off workers. It makes no
difference whether or not they had health care insurance when they were
employed, we are paying it to the unemployed.
The bottom line is this: the American people want, need, and deserve
help, and it is time for one Senator to stop running for President.
Point of Order
Mr. FRANK. Point of order, Mr. Speaker. Point of order, Mr. Speaker.
The SPEAKER pro tempore (Mr. LaTourette). The gentleman from
Massachusetts will state his point of order.
Mr. FRANK. Mr. Speaker, I am a non-fan of the rule which says we
shall not denigrate the Senate, but as long as it is on the books, it
has to be enforced.
The gentleman's comments were blatantly out of order in
characterizing the motives of a Member of the Senate. Either we are
going to have this rule and enforce it, or we are not going to have it.
I would be glad not to be bound by it. But simply announcing after
Members have violated it that we wish they had remembered it is not
appropriately enforcing the rules.
If we are going to have the rule that says clearly that we cannot
talk about the Senate in that fashion, then we should enforce it or
else let us get rid of it.
The SPEAKER pro tempore. The gentleman from Massachusetts is correct.
As the Chair said several times during the course of both of the rules
and now during a debate on this bill, it is not appropriate under
clause 1 of rule XVII of the Rules of the House to characterize the
action or the inaction of the other body; and further, it is not
appropriate to make such reference to any individual Member of the
other body during the course of the debate.
Parliamentary Inquiries
Mr. FRANK. Parliamentary inquiry, Mr. Speaker.
The SPEAKER pro tempore. The gentleman will state his inquiry.
Mr. FRANK. Would it not be appropriate for the Speaker, when such
violations happen, to prevent the violation, rather than simply comment
on it after the fact?
The SPEAKER pro tempore. The gentleman is correct. The Chair may take
the initiative in the appropriate case.
Mr. THOMAS. Parliamentary inquiry, Mr. Speaker.
The SPEAKER pro tempore. The gentleman will state his parliamentary
inquiry.
Mr. THOMAS. To understand the import of that dialogue, if someone on
the floor now was to indicate that the Senate has not passed a bill,
that would be in violation of the rule; is that correct?
The SPEAKER pro tempore. The gentleman is not correct. As the Chair
read the rule before, a factual statement of action or inaction
relative to the Senate is appropriate when it comes during debate on a
matter under consideration in the House.
Mr. THOMAS. So saying that the Senate did not pass a stimulus bill
would not be in violation of the rule? I thank the Chair.
The SPEAKER pro tempore. The comment to which the Chair took
exception earlier was an observation that the Senate had not done its
job. That is not appropriate. Indicating that the Senate has not passed
a bill is appropriate. Making reference to any individual Senator is
not appropriate.
The Chair would indicate that he will attempt to be more vigilant as
these matters occur and will interrupt Members, should there be a
continuing violation.
Mr. RANGEL. Parliamentary inquiry, Mr. Speaker.
The SPEAKER pro tempore. The gentleman will state his inquiry.
Mr. RANGEL. Could a Member state that a bill before the House did not
go before the Committee on Ways and Means and never had hearings? Is
that proper to debate on the floor?
The SPEAKER pro tempore. That is a proper matter for debate.
Mr. RANGEL. I thank the Speaker.
Mr. Speaker, I yield 3 minutes to the gentleman from Maryland (Mr.
Cardin), a member of the committee who has worked hard to protect the
rights of those people who are unemployed.
(Mr. CARDIN asked and was given permission to revise and extend his
remarks, and include extraneous material.)
Mr. CARDIN. Mr. Speaker, the legislation that is before us should be
judged on two bases: first, does it really stimulate our economy; and
second, what does it do for unemployed workers?
I would suggest that on both of these standards, the legislation
fails and should be rejected. First, it will not stimulate our economy.
Two-thirds of the relief provided in this bill will not occur during
the critical first year of this legislation, the year in which we are
trying to stimulate the economy. We run the real risk of further
deficits hurting our economy.
This bill also fails because it will not help the unemployed worker.
It falls grossly short on the changes on the unemployment insurance.
Currently, only one-third to 40 percent of the people who are
unemployed in this Nation get any unemployment insurance benefits, any
at all. The legislation before us will do nothing to correct that.
We had suggested that we take the stakeholders of the unemployment
insurance system's recommendation and
[[Page H10849]]
include part-time workers, and include the most recent wage quarter,
so those people who have left welfare, who are now working and who may
lose their jobs can collect unemployment insurance.
But no, the legislation before us does not incorporate those
suggestions. Instead, we make early Reed Act distributions. That is
Federal unemployment funds going to our States. Yet, the Congressional
Budget Office says only 5 percent of those funds would be used by the
State legislatures to improve benefits. So it does not provide any help
for the unemployed, or very little help for the unemployed.
We had suggested, why not increase the benefits? That would stimulate
the economy and be the right thing to do. But no, the legislation
before us does not do that. Instead, it was supposed to include tax
relief for unemployment insurance benefits, but now even that has been
removed from the bill. That would at least have provided some help.
That has now been taken out of the legislation.
We told the people who have lost their jobs that we were going to
help them. We told them when we passed the airline bill, and we did not
act. We told them when we passed the insurance bill that we would help
the unemployed worker, and we have not taken any action. We told them
when we passed the trade bill that we would help the unemployed worker,
and still no action.
Now we all understand that this bill has no chance of being enacted,
another broken promise to millions of unemployed workers. Mr. Speaker,
let us reject the bill that is before us, and let us come together as a
united body so we can really help those who have lost their jobs with
the benefits they deserve.
Mr. Speaker, I have two primary objections to this bill as it relates
to unemployed Americans. First, it does not do enough to help the
jobless. And second, the legislation holds displaced workers hostage to
an additional round of huge tax breaks.
The bill before us would not improve unemployment coverage for low-
wage and part-time workers, despite findings from the General
Accounting Office that low-wage workers are only half as likely to
receive unemployment assistance compared to workers with higher
earnings. The Chairman of the Ways and Means Committee has suggested
the Reed Act distributions in the bill would address that concern.
However, the Congressional Budget Office estimates that only 5 percent
of the Reed Act money provided by this legislation would be used to
expand coverage or increase benefits in FY 2002. In addition, a recent
survey of State UI directors indicates that the vast majority of them
do not believe their States would expand UI coverage with the bill's
Reed Act distributions.
I am not opposed to providing Federal assistance to State
unemployment trust funds, but it is simply not accurate to suggest that
such a step will dramatically expand unemployment coverage. There are
few simple and relatively modest steps we could take to improve
coverage, such as counting a displaced worker's most recent wages when
determining UI eligibility, but this bill does not include such
reforms. The measure also fails to increase unemployment benefits--a
step that would provide immediate stimulus to our economy by sending
more money to families who need it and who will spend it quickly.
At one point, Chairman Thomas suggested temporarily suspending income
taxes on UI benefits. While I believe an increase in the unemployment
benefit level is a better approach (because it would provide benefits
more quickly and more inclusively than suspending taxes on UI), the
original Thomas plan at least acknowledged the need to boost the value
of unemployment benefits. However, even the proposed suspension of
taxes on UI benefits has been dropped from this legislation.
Beyond the specific limitations of this bill, I have a more general
concern about a process that will doom assistance to unemployed workers
unless Congress also passes a new round of budget-busting tax breaks.
How many times have we heard promises that the unemployed would be
helped--after the airline bill--after the insurance bill--and mostly
recently during the consideration of the trade bill. But today the
House is going to pass provisions on displaced workers as part of a
larger tax bill that we all know cannot pass the other body in its
current form. The final result will be one more broken promise to
millions of unemployed Americans.
At a time when cynicism of government is actually declining, let us
not break the faith with the Americans who need us the most. If we
cannot come together on a larger stimulus package, then we should agree
on a package of assistance for displaced workers. The unemployed have
been promised help again and again. It is now time to deliver. And it
is time to choose responsible governing over political posturing.
Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, perhaps the gentleman fails to remember, I know it was
sometime ago, that we passed on the floor a Trade Adjustment Assistance
Act. We said that since the events of 9-11 were so similar, that we
attached a rider which provided $23 billion focused directly on those
people who lost their jobs associated with 9-11 and the decision by the
government to ground the airlines, and to make other decisions which
disrupted business.
I know since the Senate has not acted on that legislation that the
gentleman may have forgotten that, once again, the House responded
almost immediately with direct aid. This bill contains more than 9
billion additional dollars for unemployment. It says that we are
putting 13 weeks of additional unemployment out there for those who
need it, and the date for that being available will be moved back to
March 15. That is in the bill, as well.
If the gentleman does not believe that is adequate, that is his
opinion. To say that we have done nothing, I believe, is a gross
overstatement. If he would look at the legislation passed by this House
and sent over to the Senate, perhaps the gentleman was concerned about
the fact that the Senate has sent us no legislation dealing with those
issues that we sent them.
Mr. McCRERY. Mr. Speaker, will the gentleman yield?
Mr. THOMAS. I yield to the gentleman from Louisiana.
Mr. McCRERY. Mr. Speaker, I thank the gentleman for yielding to me.
Also, the previous speaker characterized the Reed Act transfers as
being of very little help to the unemployed. The fact is that States
can use Reed Act transfers immediately to help the unemployed find a
job. Some of the unemployed might consider that help.
So I just wanted to make clear that the Reed Act transfers can be
used immediately for that purpose.
Mr. RANGEL. Mr. Speaker, I yield 30 seconds to the gentleman from
Maryland (Mr. Cardin) to respond.
Mr. CARDIN. I thank the gentleman for yielding time to me, Mr.
Speaker.
Let me point out, they can only use the money if they are in session
and they pass legislation improving the unemployment system. There are
limitations as to how the States can use it, the Reed money.
Let me point out to my friend, the gentleman from California, we said
that when we passed the airline bill that we would help the airline
workers. The day after we passed the bill, we saw massive layoffs of
airline workers. We have not done one thing to help them with their
unemployment benefits.
I agree that we should do something, so let us separate out the
unemployment insurance provisions. Let us separate that out and not put
it in with the controversial provisions. Let us at least get something
done for the unemployed worker. But instead, they want to put it all
together, knowing nothing is going to happen.
Mr. THOMAS. Mr. Speaker, I yield 30 seconds to the gentleman from
Louisiana (Mr. McCrery).
Mr. McCRERY. Mr. Speaker, I do not think my friend, the gentleman
from Maryland, meant to characterize the Reed Act transfers as he did
because he quickly corrected himself to say, well, there are limits on
how they can use those.
First, he said the legislatures have to go back into session to use
the Reed Act transfers. That is incorrect. Current law allows the
States to use the Reed Act transfers within some limits, yes; but they
can use those immediately upon transfer.
Mr. CARDIN. Mr. Speaker, will the gentleman yield?
Mr. McCRERY. I yield to the gentleman from Maryland.
Mr. CARDIN. Mr. Speaker, I would ask the gentleman from Louisiana
(Mr. McCrery), could they use it to increase benefits without the State
legislature meeting?
Mr. McCRERY. No. But reclaiming my time, they can use it to help the
unemployed find a job. It is called unemployment job services.
Mr. RANGEL. Mr. Speaker, it is my honor and pleasure to yield 3
minutes
[[Page H10850]]
to the gentleman from Michigan (Mr. Dingell), a former chairman of the
Committee on Commerce and the ranking Democrat.
(Mr. DINGELL asked and was given permission to revise and extend his
remarks.)
{time} 0115
(Mr. DINGELL asked and was given permission to revise and extend his
remarks.)
Mr. DINGELL. Mr. Speaker, it is a good time to bring it up. It is
late at night. This kind of cynical legislation should be brought up in
the dark because people are not going to want to see this kind of sorry
display take place.
First of all, this is a rather shameful piece of legislation. It is a
fine compendium of giveaways to special interests on which there is
neither economic nor moral justice.
The bill promises laid off workers a lot of help but then squeezes
them into a kind of weird situation where they cannot get it. It gives
tax credits to people who do not have any money who are going to have
to wait for a year to file an income tax, and then get their refund,
and then to maybe go out and get the money that they have to have now
to buy the unemployed health care program that this bill supposedly
sets up.
Does that make sense? I hardly think so.
Now, the Republicans are talking about how this is going to give us a
bill that is going to go to the Senate. The Senate is not going to take
up this sorry piece of legislation. And on top of that, it is illusion
at best. The program of grants that are given to the governors are, in
fact, taken away from categorical programs. And it is interesting to
note that those programs, the Republicans do not even know how they are
going to go to work. And they said, well, we are going to have to find
in one discussion, they said, we are going to have to find out how we
are going to create some sort of national calamity that will create the
need for putting money into some of the States that are losing money.
Now, I am sure with the innovation that they have, if there is a
Republican governor that that might occur; but then again, it might
not.
In any event, the simple fact is that the unemployed who are
supposedly getting health care under this are not. They are getting a
tax credit which they will not be able to cash in until such time as
they have, in fact, filed a return. And if they have not filed a
return, they are not going to get anything. And if they have not gotten
any money coming back, they probably are not going to get anything
either. So it is all fraud. It is all sham. It is all illusion. It is,
in fact, a thinly disguised tax cut for the rich for the world to do.
And I can understand that the stimulus that the Republicans are
talking about is a stimulus for their fat cat Republican friends. It is
essentially a repealer, believe it or not, of the alternative minimum
tax going back for years to take care of their buddies.
Now, I recognize in an election year that probably makes good sense
but it is hard to defend morally and it is hard, indeed, to justify on
the basis of economics. It is also something which is not going to
become law this year. The unemployed are not going to get the health
care benefits that my Republican colleagues are talking about. And the
end result is that this is just an exercise in frustration and illusion
and delusion and deceit.
Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I tell my friend I have great admiration for the
gentleman from Michigan (Mr. Dingell). But this health insurance plan
was devised by someone who proudly calls himself a compassionate
conservative, and the description the gentleman just provided is simply
flat out wrong. It is an advancable refundable credit. They get it
immediately. They do not have to wait until the end of the year. It is
not based upon one's income. And it is not something that the gentleman
described.
As I said, I have a great deal of admiration for him. But his three
minutes were used to describe something that is not in our bill and it
simply was wrong.
Mr. Speaker, I yield 2 minutes 30 seconds to the gentleman from
Michigan (Mr. Camp), a member of the committee.
Mr. CAMP. Mr. Speaker, I thank the chairman for yielding me time. And
I also thank the chairman for pointing out that the advance payment
structure gives immediate help to the unemployed.
But this bill is not only a vehicle to create jobs and help the
unemployed, but, unlike my friend from Michigan characterizes, this
bill, it is an agent of compassion. The victims of the terrorist
attacks in New York and anthrax and Oklahoma City will receive tax
relief under this package from death taxes and incomes. There is that
provision that would allow charitable organizations to give immediately
to those families who lost loved ones in these attacks so they do not
have to fill out all the cumbersome paperwork that the charities are
demanding to meet their need requirement, so that the families will not
be humiliated by going to charity after charity to fill out paperwork
after paperwork.
This bill fixes that provision. This bill helps those families and
will help them get the assistance they need. Many of them lost their
breadwinners. I think it is very, very important that we get this
provision passed.
The proposal also provides more than $9 billion in extended
unemployment benefits available in any State. My State of Michigan
would get an additional 12 percent in funding in unemployment,
injecting more than $340 million badly needed in my home State of
Michigan to those who need it.
Nationally, workers who have exhausted their benefits will get an
additional 13 weeks. Unemployment benefits generally last for 26 weeks,
so for a total of 39 weeks of unemployment. Nationwide an estimated 3
million workers will receive these benefits averaging about $230 per
week. These benefits would be 100 percent Federally funded, unlike
under the regular extended benefits where States have to pick up 50
percent of the cost.
The health insurance provisions provide a health insurance tax credit
which covers every displaced worker, whether or not they had employer
provided insurance. Many employers in Michigan have small businesses
and this will be especially helpful to those employers. And for those
employees who had coverage for at least a year, they must be sold a
policy. There can be no preexisting condition.
I have heard many Members say that there is no chance of this bill
being enacted, and I would say if more Members on the other side would
vote for this bill, there would be a chance for this bill being
enacted.
There is also an additional $4 billion in emergency block grants to
be used for health care services and worker retraining. These are all
funds that are much needed for our unemployed workers and for our
States to help implement those programs. I urge a yes vote on this
bill.
Mr. RANGEL. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, the chairman of the committee in response to a question
that was raised by the former chairman of the Committee on Energy and
Commerce was asking well, what does one do with a tax credit? Where
does one take it? How does one convert this into health insurance? What
does one do if one got a disability? And the distinguished gentleman
from California (Mr. Thomas) said that the gentleman from Michigan (Mr.
Dingell) did not understand because under his bill, under his program
it was an advanced refundable tax credit.
Well, I tell Members this, when Members get back home and people ask
questions, Members had better staple the gentleman from California's
(Mr. Thomas) press release to their response. Because I said it before
and I say it again, the total Republican Thomas health plan is on page
100. There is nothing in this bill about any refundable tax credit.
There is nothing in here about anything except what some people who did
not like the Secretary of Treasury 2 weeks ago now find him to be the
Secretary of Health and the Secretary of the Unemployed.
But I tell Members, if they want to find out where to find the
refundable tax credits, which makes sense to me, they had better check
with the Secretary of Treasury.
Now, a person who knows about health and who helped to draft this
program because he is a doctor and he did not refer to the Secretary of
Treasury, is the gentleman from Washington
[[Page H10851]]
(Dr. McDermott), a senior member of the Committee on Ways and Means.
Mr. Speaker, I yield 3 minutes to the gentleman from Washington (Mr.
McDermott).
Mr. McDERMOTT. Mr. Speaker, I thank the gentleman from New York (Mr.
Rangel) for yielding me time.
Looking at this bill makes me think of the Enron Corporation.
Republican handling of the economy in this House has been just like
Enron. We start the year with a $5.6 trillion surplus, and 12 months
later we are broke, and we are borrowing to give tax credits and tax
cuts around the country. Sounds just like Enron to me. Fortune 500,
broke at the end of the year.
How did they do it? Well, they gave big stock options and whatnot to
their board of directors. So did you. You gave a tax credit of 1.3 or
1.8 or 2 billion, who knows exactly what it was, or 2 trillion, and
ultimately you have disseminated our whole base in this country.
Now we come along again, you blow the bottom of the tax, the lock
box. We do not have any pensions left, just like Enron. They have
18,000 people out in with nothing because of their fiscal management
and that is more of the same in this bill. But the part that is really
irritating is this whole health question.
Now, there is nobody on this floor who has ever been broke, I guess,
or they have forgotten what it was like not to have money. We all make
$11,000 a month. Now, just imagine if we suddenly were without
employment. And we were getting the average benefit for unemployment in
this country which is $224 a week. That is a little less than $900 a
month. Going from $11,000, right, down to $900.
Now, we got to still pay the house mortgage, right? That is easy. And
the next thing is we want to have a little food, right? And then we
want to go pay for your health care benefits. Now, we are going to get
60 percent of the premium from the government. We just have got to come
up with 40 percent of it, right? How many of us think that we would be
able to pay for our rent and pay for our food, and put clothes on our
kids' backs and put gas in the car while we look for a job and pay 40
percent of our health care benefit?
This is a fraud. I do not care how many dollars you put in it, it is
not going to be any good to give a guy a voucher for, I do not know,
$600 and say, okay, go out now and find yourself a health insurance
plan. Because he hasn't got the other means to put with it to pay for
it. It is simply a fraud.
You are not guaranteeing health benefits to anybody. You could have
done something. You could have said let us put them all in the
Medicaid. That would be one way. You would guarantee they had some
health care. Or you could allow them to buy into Medicare as has been
suggested for people between 65 and 50. Let them buy in. But you do not
want to give anybody a guaranteed program. You want to throw them into
the free enterprise system and say, good luck. It is a fraud and it
should be defeated.
Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume.
The gentleman failed to tell anyone that if they are actually under
the COBRA program they can take the certificate, they can go to the
unemployment office. As they get the registration for unemployment,
they apply it to COBRA. That certainly is available. There are those
people who have health insurance who actually pay for it out of their
pocket. They, now, when they are unemployed, get 60 percent of every
dollar subsidized. They already have health insurance. They continue
that health insurance.
The gentleman seems to believe there is only one way to solve the
problem when the American worker has been scrambling around for a
number of years because, depending on whether your employer provides it
or not, you may or may not have health insurance. This guarantees if
you get health insurance, whether you had it at your employer's place
or not. We simply cover more people than they do. I think that is why
they are squirming a little bit.
Mr. Speaker, I yield 30 seconds to the gentleman from Louisiana (Mr.
McCrery).
Mr. McCRERY. Mr. Speaker, with respect to my good friend from
Washington's (Mr. McDermott) comments, I agree that people who go from
a job to being unemployed and on unemployment insurance have a tough
time meeting their mortgage payments and so on.
So in this compromise bill we are considering tonight, in the first
time of the history of the United States, we are offering the
unemployed a 60 percent subsidy for their health insurance. The
gentleman says that they will not use it. Well, the experts who we hire
around here to look at these things and estimate how much a proposal
will cost have estimated it will cost $13 billion, so somebody is going
to take advantage of it.
Mr. RANGEL. Mr. Speaker, I yield myself such time as I may consume.
Well, I am at a disadvantage, Mr. Speaker, because I cannot keep up
with the gentleman from California (Mr. Thomas). He is making up this
thing as he goes along and he refuses to refer to what page.
First of all, the whole idea that we cover less people, we have
information from the Health Department to indicate we cover 5 million
under COBRA, and we cover up to 3.8 million on the Medicaid, and he
only covers 3.3 tax credits under his so called health bill. And if he
has figures to contradict this, I will eat it on the House floor. So
much for that.
But the interesting thing as to when one goes to the unemployment
office and they go there with their credit and they do all of these
things, sounds exciting to me, but I refer you to page 100. That is not
on page 100. The total program is that you got to find Secretary
O'Neill and ask him what you do. Do not ask the chairman of the
Committee on Ways and Means.
Mr. Speaker, I yield 3 minutes to the gentleman from Wisconsin (Mr.
Kleczka).
Mr. KLECZKA. Mr. Speaker, the chairman of the committee, the
gentleman from California (Mr. Thomas) indicated in his opening remarks
that this is sort of like a compromise, sort of like a conference
committee report. Well, it is sort of like it is not.
{time} 0130
The fact of the matter is the only good part of the bill is it is as
dead as the first you passed, which is even worse.
Now, one of the big hangups between the other body and the House
Republicans was not the corporate tax giveaways, totaling some $60
billion for this year; but it was a few billion dollars for the
unemployed and those who are losing their health care. And I say to the
gentleman from California (Mr. Thomas), what you have in this bill is
woefully inadequate. If we can throw $60 billion at the corporations
and the high-income folks, we can do better for those people who have
lost their jobs and have lost their health care.
And so the other body, and the gentleman from New York (Mr. Rangel),
and our negotiators were going to swallow hard on the corporate stuff.
We will give you the $60 billion, but we want a better shake for the
unemployed. And you guys said, you cannot have a better shake, this is
all we are giving you.
And then what really squelched the deal was your insistence on health
tax credits. Some might say, well, why are they so hung up on it? Well,
Mr. Speaker, here is why. Here is a quote from the chairman of the
Committee on Ways and Means in an article dated March of 1999, where he
indicates, ``We will offer a bill this year to jettison the entire
employer-based insurance system and replace it with a system of
individual tax breaks.''
So it did not happen in 1999, but it is happening today, and this is
the start of it. Instead of expanding an existing program, COBRA, and
giving a better break to workers, what my colleagues are doing is
saying we are insisting on these tax credits because the next step, my
friend, is to replace employer-sponsored health care with the same type
of a tax credit. Now, you can say, no, that is not my quote, I do not
remember that, but the chairman has said this four or five times, and I
have the exact quotes each time.
Remember the old Medicare program? They had a good idea over there
about making it better and giving our seniors a Medicare HMO. And since
that happened, 800 million seniors who joined up have quit it. It is a
bad deal. It is a failed experiment. And so now
[[Page H10852]]
my friends on the Republican side, after helping our seniors, are out
to help working men and women by jettisoning employer-based health
care.
That is what this debate is all about. I am glad this bill is DOA, if
it ever gets over to the Senate.
Mr. THOMAS. Mr. Speaker, I yield myself 15 seconds. I am pleased the
gentleman believes this program in this bill is mine, because it is an
excellent bill. It is in fact the President's plan. The administration
has worked out the structure, and this is President Bush's response for
those in need.
Those people who have COBRA are able to utilize COBRA. But those who
believe that that is a bit expensive when they are unemployed are
provided additional options. And I think the President has done an
excellent job in responding to those in need.
Mr. Speaker, I yield 2\1/2\ minutes to the gentleman from Florida
(Mr. Shaw), the chairman of the Subcommittee on Social Security of the
Committee on Ways and Means.
Mr. SHAW. Mr. Speaker, I thank the gentleman for yielding me this
time. People watching this debate have to be somewhat confused at this
particular time, but let us bring everything back to earth and see
exactly where we are at this particular time in the debate.
Right here in Washington right now it is 1:30 in the morning.
Comments have been made as to the lateness of the hour. Much of the
lateness of the hour has been caused by the failed negotiations between
this body and the other body in order to try to work something out.
Unfortunately, I have to agree with the previous speaker that this
may be dead on arrival when it is received in the other body. But if it
is not acted upon, then certain things will not be addressed by this
Congress and signed into law by this President; such things as the
extension of unemployment compensation for 13 weeks. That is important.
That is important to the people who are without jobs, and it may not be
enough.
The gentleman from Washington was talking about, well, this was some
kind of a big deal. Well, it is if you are out of work. Health care.
The Federal Government helping to pay health care costs and health care
insurance for those that have lost their insurance because of the loss
of their jobs, since March. That is the right thing to do. If it is not
taken up by the other body, it will not happen. Such things as
accelerated depreciation and things that are going to bring about
capital investment by the private sector are not going to happen unless
this is taken up by the other body. And as a result there will be more
layoffs.
What we are trying to do is to stimulate the economy. This body has
already passed a stimulus bill that has languished in the other body.
They have seen fit not to take it up. We have tried to negotiate with
them with a phantom bill, one they do not have; and we have failed and
they have failed. Now is the time for us to pass this bill. Over 50
percent of it goes to individuals, not businesses.
This is a bill that is compassionate, it cares, it stimulates the
economy, and it does exactly what this body should do, and that is care
about the unemployed and those who have lost their jobs.
Announcement by the Speaker Pro Tempore
The SPEAKER pro tempore (Mr. LaTourette). The Chair would indicate to
Members that the use of the word ``languish'' is probably not
appropriate in referring to the inaction or action of the other body.
Mr. RANGEL. Mr. Speaker, I ask unanimous consent that if the other
side does not refer to their health bill any further this evening, I
will stop embarrassing them.
The SPEAKER pro tempore. The gentleman has not stated a correct
unanimous consent request.
Mr. RANGEL. Well, having heard the objection, then I must continue.
Mr. Speaker, I yield myself such time as I may consume, and let me
first start off by apologizing to the gentleman from California (Mr.
Thomas). All evening I have been calling it the Thomas health bill,
since I thought he drafted it. But his response to the gentleman from
Michigan (Mr. Kleczka) was that this was not his bill at all, it was
the President's bill.
So maybe we ought to get unanimous consent to substitute, if we want
to find out what is in the bill, the President, instead of the
Secretary of the Treasury. Because there is only one sentence in this
bill that deals with health care, and that is ``the Secretary shall
establish the program.'' So if this is not the program of the gentleman
from California (Mr. Thomas), I apologize. Mr. President, we owe you an
apology too.
Mr. Speaker, I yield 2 minutes to the gentleman from Georgia (Mr.
Lewis), a vital member of the Committee on Ways and Means.
Mr. LEWIS of Georgia. Mr. Speaker, I want to thank my friend, the
ranking member, for yielding me this time.
Mr. Speaker, this proposed stimulus package is not good for the
economy. It is not good for unemployed workers and their families. It
is not good for America. This bill is only good for the big
contributors to the last Bush campaign, big companies like Enron, a top
contributor to President Bush and the Republican Party. The only thing
this bill is going to stimulate is more campaign contributions.
This legislation is the result of an illicit relationship between the
Republican Party and large campaign contributors. This bill never faced
the spotlight in the Committee on Ways and Means. It was conceived in
darkness and born in the den of inequity.
I say again this bill is not good for the economy, and it is not good
for America. We should send this bill back to where it came from, back
to the bosom of Chairman Thomas and the Republican leadership.
I urge my colleagues to vote against this bill. It would not help the
economy. We should be working together on a bipartisan package that
helps average working Americans, those who need it most. We should be
working on an economic stimulus package that America deserves and
deserves now, and not this Thomas bill.
Mr. THOMAS. Mr. Speaker, I yield 2 minutes to the gentleman from
Wisconsin (Mr. Ryan), a member of the Committee on Ways and Means who
has contributed significantly in helping us shape this package so that
we can actually get the country moving again.
Mr. RYAN of Wisconsin. Mr. Speaker, let us put all the theatrics
aside. We are at war, we have a national emergency and homeland
security on our hands, and we are in a recession. So speaker after
speaker is coming down to the well playing partisan politics.
Let us talk about what this bill actually does. This bill has two
important goals: one, help the people who have lost their jobs with
their health insurance and with unemployment compensation at an
unprecedented level; and, second, and most importantly, let us help get
people back to work.
What this bill does is recognize what has gone wrong with this
economy. We now know officially that we are in a recession and that
this recession started in March. And we do know that the recession did
not come from a decline in consumption but a decline in investment. We
have lost 1.3 million manufacturing jobs in America in the last 14
months.
In my own home State of Wisconsin, we have lost 29,900 manufacturing
jobs in the last 14 months. This bill injects $89 billion of investment
stimulus in the economy this year.
What we are trying to say is this: Americans, employers, we want you
to put your capital at risk. We want to give you incentives to go back
and hire people, put them back on the payroll, invest in America,
reinvest in your company and create jobs. What we are trying to do is
use what has worked time and time again when we have conducted these
policies in America before, and that is make it easier for our
employers to keep being employers, to invest in America, to grow new
jobs.
We know for a fact that this bill will stimulate the economy. It will
bring people back to work, and it will help those people who are
looking for their jobs get other jobs. That is what this is all about.
Let us put the partisan shenanigans aside, cut to the brass tacks,
pass this bill, and hope we can pass this in the other body, because
that is what our constituents deserve.
Mr. RANGEL. Mr. Speaker, I yield myself such time as I may consume to
say to the gentleman from Wisconsin that as soon as he can find what
page in the bill all these advance refundable
[[Page H10853]]
credits are, any of these credits, since he worked so hard on it, it
must be in the bill someplace, but whenever he finds that, he can rely
on me to give him a minute to show it to the rest of us.
Mr. Speaker, I yield 2 minutes to the gentlewoman from Florida (Mrs.
Thurman).
Mrs. THURMAN. Mr. Speaker, I thank the gentleman for yielding me this
time.
To the speaker before me, let us not forget that we just did in July
a $1.3 trillion stimulus package. We did $40 billion for recovery and
relief, we did $15 billion for the airline industry, and we are doing a
defense bill that will put money into the economy.
Let us talk about the Republican stimulus proposal for just a little
while. The GOP plans to exclude, and I might add that many women in
this category, part-timers, temporary workers, and workers who have not
worked in the same job for long enough, some by the way might even be
some of those welfare mothers that the gentleman talked about so
eloquently, so if they do not get 13 weeks, or they do not get
unemployment compensation now, they certainly are not going to get 13
weeks of extended unemployment compensation.
The refundable tax credit for health insurance premiums. I hear the
rhetoric that is being talked about. But guess what, if they do not
have the money, whether it is today or whether at the end of the year,
they do not have the money to buy this insurance, and it does not
matter whether they get a tax credit.
And I might say to my colleague that he might want to think about
what the governors are saying. Paul Patton from Kentucky says, ``If
Congress is serious about a stimulus package, they need to help States.
A temporary increase in the Federal share for Medicaid is the right
step to take.''
Now, according to CBO, up to 9 million displaced workers would
receive relief under the Democratic plan, 5.1 million under COBRA, and
up to 3.8 million under Medicaid. The Republican plan only provides
assistance to 3.35 million.
But let me just remind my colleagues of a story in Florida recently.
We had a legislature that had to go into a special session because they
could not meet their needs. The fact of the matter is, what they had to
do is to reduce their spending, and they had to delay their promised
tax cuts because our constitution requires the State to have a balanced
budget. Where are the people tonight who voted for a balanced budget
amendment to our constitution?
I would suggest to my colleagues that you are sending us down the
wrong path.
{time} 0145
Mr. THOMAS. Mr. Speaker, I yield myself such time as I might consume.
I might remind the gentlewoman that under their program, the numbers
that she quoted in terms of the number of people that they cover
include people who voluntarily retire, people who voluntarily leave
their jobs, not that they were distressed or lost their jobs. It seems
to me that that is a significant expansion.
What we are trying to do are help people in need, not extend to it
people who make a voluntary decision. We are worried about the people
who lost their jobs involuntarily.
Mr. Speaker, it is my pleasure to yield 2\1/2\ minutes to the
gentlewoman from Washington (Ms. Dunn), a member of the Committee on
Ways and Means.
Ms. DUNN. Mr. Speaker, 5,000 Boeing workers were laid off in
Washington State last week. Yesterday Selectron closed their plant,
laying off 345 people. Nordstrom has laid off 900 people. Thirty-eight
thousand people, that is the number of how many honest, hardworking
Washington State residents have been laid off this year and are now
struggling to hold their families together during a tough holiday
season.
Yesterday my State's unemployment rate surged to 7 percent, the
highest since 1995. What has been the reaction of the United States
Senate to this news? Inaction.
Two months ago the House passed a fair and balanced bill that
provided business incentives to help our economy and to create jobs. It
provided assistance to displaced workers for income and for health
insurance; $257 million of that would have come into Washington State.
Two months have lapsed and what has the Senate done? Nothing.
We were told that we needed to do more for displaced workers and for
their incomes. We agreed and we added an additional 13 weeks of
unemployment benefits.
We were told that we needed to do more for displaced workers health
care. We agreed and we added $13 billion in health care assistance.
In all, between health care coverage and employment assistance, we
went from $12 billion to $37 billion. Now, though, we are being told
that there are no disagreements with the new funds that are being
added, but with the method of delivery.
This is an argument, Mr. Speaker, that is lost on the American
people. Families right now simply want the peace of mind that their
children are going to be cared for and that we are going to be able to
help them cover an injury or illness.
We are now being told that individual tax cuts should not be part of
any stimulus package. Why? Because a teacher in Belleview, Washington,
who pays a 27 percent tax rate is considered rich. This teacher, who
earns a salary of $30,000, who cannot even afford housing near the
school district, and she has to commute up to an hour just to get to
class every morning, she is considered rich by the Senators who have
failed to act.
Mr. Speaker, in my State, 660,000 people will be helped by this
provision. I think it is time for the Senate to give up and to stop
making excuses for their inaction.
announcement by the speaker pro tempore
The SPEAKER pro tempore (Mr. Thornberry). The gentlewoman will
suspend.
The Chair would again remind all Members not to characterize action
or inaction of the Senate.
The gentlewoman may continue.
Ms. DUNN. Mr. Speaker, my commitment to the people I represent is to
make sure that the economic security bill we pass will boost our
economy and will provide, at the same time, help for displaced workers
and stimulate the economy, but if the Senate fails to act again, Mr.
Speaker, we must explore every avenue, congressional and
administrative, to bring assistance to those in need.
I support this bill, and I hope everybody will vote for this bill. We
help my Washington State workers and their own at the same time.
Mr. RANGEL. Mr. Speaker, I yield 1 minute to the hardworking
gentlewoman from Ohio (Ms. Kaptur).
Ms. KAPTUR. Mr. Speaker, I thank my beloved colleague the gentleman
from New York (Mr. Rangel), the distinguished ranking member of the
Committee on Ways and Means, for yielding me the time, and I rise in
strong opposition.
This is not a bill. It is a raid. First, it is a $260 billion raid on
Social Security and Medicare. Yes, tax cuts for the super rich gut the
lock box, and it holds the unemployed hostage for tax cuts to the
Fortune 500 that are not even required to invest the dollars in
America; $1.4 billion more to IBM; $671 million to GE that has not
created a manufacturing job in this country in over a decade.
With American troops at war, sacrificing themselves, five of the top
corporate tax evaders walk away with over $100 million, and they are in
the energy business like discredited Enron that has both hands out. By
golly, their CEO, Ken Lay, he is laughing all the way to the bank with
the $200 million he took out of the deal, and in fact, he should pay at
the 38 percent tax rate. I would not mind if we taxed him at the 50
percent rate to pay for all the unemployed people he put out of work.
Let me just say, we ought to think what Bill Natcher, our colleague,
used to tell us, think about it America. Vote no on this Republican
trickle down raid on the public Treasury.
Mr. THOMAS. Mr. Speaker, I yield myself 10 seconds to tell the
gentlewoman from Ohio (Ms. Kaptur) that a no vote on this would deny
her fellow Ohioans $406 million additional on just the $9 billion in
this program for unemployment insurance, and the decision is hers.
[[Page H10854]]
Mr. Speaker, it is my pleasure to yield 2 minutes to the gentleman
from California (Mr. Herger).
Mr. HERGER. Mr. Speaker, I rise in strong support of the economic
security and worker assistance package. This legislation will give our
economy an urgently needed boost and will provide displaced workers
with additional financial assistance in these uncertain economic times.
Specifically, this bill will allow Americans to keep more of their
hard earned dollars by deducing the 27 percent tax rate to 25 percent
beginning in 2002. This legislation will encourage new business
investment by allowing companies to more quickly recover the cost of
their investments, allowing small businesses to expense more of their
equipment purchases.
In all, this legislation will inject nearly $90 billion of economic
stimulus into our economy next year. This package also provides
significant new assistance to unemployed workers.
Under the proposal, displaced workers will receive up to 13 weeks of
extended unemployment benefits, and an additional $9 billion in surplus
Federal unemployment funds will be made available to States.
As chairman of the Subcommittee on Human Resources, I want to thank
the gentleman from California (Mr. Thomas) for all his hard work in
this area. This bill is a carefully crafted compromise, supported by a
number of centrist Senate Democrats and is a result of weeks of
negotiation.
Mr. Speaker, let us pass this bill and send a message to the Senate
and the Senate Democrat leadership, which has refused to pass this
legislation, that the American economy and American workers cannot wait
any longer, and that it is time to act and act now.
Mr. RANGEL. Mr. Speaker, I would just like to thank my friend, the
gentleman from California (Mr. Herger) for not referring to the
nonexisting health program for the unemployed.
Mr. Speaker, I yield 1 minute to the gentleman from Maine (Mr.
Allen).
Mr. ALLEN. Mr. Speaker, I thank the gentleman from New York (Mr.
Rangel) for yielding me the time.
Mr. Speaker, this bill is the product of negotiations of the House
Republicans with themselves. In our system, a remarkably ineffective
way of making law.
They cannot seem to give up writing big checks to big corporations.
Take, for example, the alternative minimum tax. It is not repealed
retroactively as in the first Republican bill. Under this bill,
corporations get only $13 billion in several smaller checks and not all
at once.
The gentlewoman from Connecticut said that the unemployed will get
$30 billion. We think it is about half that amount. Compare that number
to the cost of this bill over 5 years, $260 billion.
While most States right now are facing desperate situations with
respect to their own finances, the bonus depreciation provision will
reduce State government revenues by $5 billion a year for each of the
next 3 years. Tell that to your governors.
Rarely have we heard so much talk about the unemployed and so little
help for them.
Mr. THOMAS. Mr. Speaker, it is my pleasure to yield 3 minutes to the
gentleman from Ohio (Mr. Portman), a member of the committee.
Mr. PORTMAN. Mr. Speaker, let us back up for a second and talk about
why we are here. Let us remind ourselves of the fact that we are in a
recession. The economy was already hurting before September 11, and it
is in a whole lot worse shape now. Eight hundred thousand people we
believe have lost their jobs since September 11. Businesses are
shutting down, mostly small businesses, and people are hurting because
people are unemployed.
We are trying in a good faith effort to deal with that and to protect
people's jobs and help jump start this economy. That is what this is
all about. We can do it tonight.
For starters, this package provides needed stimulus to the economy by
giving people more money to spend so they can get out and spend more
money. We heard earlier people care about consumers. I have heard
tonight on the floor that this is all about the super rich; that it is
all about fat cats, those are quotes, tax cuts for the rich. Tell me
where they are. Is it the $13 billion that is going out to people who
did not get checks over the summer and the fall, the $300, $500, and
$600 checks? Are they the fat cats? They are at the low end of the
economic scale. They need that money. They can use it right now. They
will spend it.
Is it lowering the taxes from 27 percent to 25 percent? These are
people making $27,000 a year up to about $67,000 a year. Are these the
super rich? Are these the fat cats? Are these the folks who I have
heard about tonight on the floor? I do not think so.
I do not where these tax cuts for the super rich are. These folks are
not super rich. These are the folks who need the money and they need it
now.
Yes, there are some things to help companies to retain and grow jobs,
and those include allowing businesses to immediately expense things so
they can go out and buy them. Thirty percent are meeting expensing.
Yes, the alternative minimum tax makes no sense. It is
countercyclical. It hurts companies at a time when the economy is not
doing well. Half of America's companies were paying alternative minimum
tax during the last recession. It hurts jobs.
There is nothing retroactive in here. It is all prospective, and it
is going to help jobs, and that is why we are doing it.
We also need to help people who are already unemployed. Ohio gets
$406 million out of this to help the unemployed. The health insurance
provisions are very good. I am looking at page 100. I am also looking
back to page 93, 94 and 95 and 96 and 97 and so on up to page 108.
There is a lot of good stuff in here about it, and what it says to me,
it says my colleagues are selling people short.
They can figure out this program. They go to the unemployment office,
they get a certificate, they go out and get their health care. Most of
them are going to get it through the employer-based system. I do not
know where this paranoia comes that we are somehow destroying the
employer-based system through this plan. No analysis I have seen,
nobody who is objective, who looks at this thinks that most people will
not get it through the employer-based system. The employers are
providing health care now. They can use a certificate for that.
The point is that you cover more workers because if you do not get
the employer-based health care, you can go out and use the certificate
in the private market to get health care if you do not have it now. We
may cover fewer people, but we cover more people who are unemployed and
uninsured, and that is the point, is it not? That is where the
resources ought to be directed. That is what this is all about.
This economic stimulus package is going to help put people back to
work. It is going to help people who are already out of work, and it is
going to get this economy going again. We have an opportunity to do
something big tonight, which is send a message to the other body and
get this done for the American people.
Mr. RANGEL. Mr. Speaker, I yield myself such time as I may consume.
I may end up apologizing to my friend on the committee because he is
a good friend of the President, and so this is the President's program,
and so my colleague flipped through those pages a little fast here, but
I will yield him 30 seconds to tell me how does a person with a tax
credit and no job and no tax liability, what do they do and where do
they go, and he can just refer to one of those pages that he flipped,
and if he does not know, he can call the President and I will give him
time when he comes back.
Mr. PORTMAN. Mr. Speaker, will the gentleman yield?
Mr. RANGEL. I yield 30 seconds to the gentleman from Ohio (Mr.
Portman) to tell me what page is this on.
Mr. PORTMAN. Mr. Speaker, this is a very interesting idea, because
this actually came out of the Democratic Leadership Council, as well as
the President of the United States, as well as people on both sides of
the aisle here. No one person has a monopoly on this idea.
Mr. RANGEL. Mr. Speaker, if the gentleman will yield, where does the
person go, to the Democratic Council?
Mr. PORTMAN. No. It is a great program because you get the
certificate and you use it. Do not sell people short. They can figure
this out.
[[Page H10855]]
{time} 0200
Mr. RANGEL. Mr. Speaker, I yield 1 minute to the gentleman from
California (Mr. Sherman).
(Mr. SHERMAN asked and was given permission to revise and extend his
remarks.)
Mr. SHERMAN. Mr. Speaker, I bring you another Christmas story. Long
ago, many highly profitable corporations paid zero in Federal income
tax. Ebenezer Scrooge rejoiced. But the American people insisted that
we pass a corporate alternative minimum tax so that no matter what
loopholes a profitable corporation exploited, it still had to pay a
minimum tax of 20 percent of its economic income.
Today, Ebenezer cynically dresses as Santa Claus. He is pretending to
bring relief for Tiny Tim. But actually he is delivering the virtual
repeal of the corporate alternative minimum tax, delivering presents to
the largest and richest corporations in America. In doing so, he will
take $13 billion away from Social Security and imperil the retirement
of Mr. Cratchit.
Bah, humbug.
Mr. THOMAS. Mr. Speaker, it is indeed my pleasure to yield 2 minutes
to the gentleman from Arizona (Mr. Hayworth), a member of the
committee.
Mr. HAYWORTH. Mr. Speaker, I would caution us all, with the severity
of the challenge our Nation faces, with the fact that we are a people
at war who were wantonly and brutally attacked on September 11, to
continue to preen and posture and play games in the hopes of providing
what in some twisted way must be thought of as a clever soundbite does
a disservice to people who are out of work, to people who are hurting,
to people who need health insurance, to people who need this
unemployment, money that has been set aside where we have tried to work
in good faith.
People can talk about the lateness of the hour. People can try to use
misguided tales of Scrooge. The tragedy is for all the talk of
compassion, my friends, if you set aside this last best opportunity to
help these people, then you have turned your back on them. And then you
have taken on the mantle of those you claim to attack and not to
support. You have taken on the mantle of Scrooge. We cannot have that
tonight. We cannot have this type of posturing and preening. Let us put
the people in front of the politics. You may disagree with us on many
matters. We have tried to come halfway and find a plan that can work at
the behest of our President.
The American people deserve this opportunity. Do not turn your back
on the people, for if you do so, you will ensure that this holiday is
one that lacks prosperity and you will ensure that you are not doing
your part to add to goodwill and a constructive, united front in the
face of a massive war effort.
Mr. RANGEL. Mr. Speaker, I yield 1 minute to the hard-working
gentlewoman from Florida (Ms. Brown).
Ms. BROWN of Florida. Mr. Speaker, as we pause for the holiday, the
loyal opposition party is bent on giving out huge handouts for their
country club friends for Christmas. Meanwhile, most Americans,
especially minorities, go on suffering the economic consequences of 9-
11.
In concentrating on passing tax cuts, trade bills and stimulus
packages for the rich, this House, which is supposed to be the people's
house, continues to allow the big dogs to eat first. In fact, right
now, they are the only dogs that are doing the eating.
More workers lost their jobs in October than any other time in the
last 10 years. And what is their response? Pass a tax cut, pass a tax
cut, pass a tax cut.
This country needs a stimulus bill that provides money for jobs
training, economic development, and real health care. In closing, let
me just say one thing. Thank God for the other body and hold the line
for the American people. Hold the line.
Announcement by the Speaker Pro Tempore
The SPEAKER pro tempore (Mr. Thornberry). The Chair would remind all
Members not to urge action or inaction of the other body.
Mr. THOMAS. Mr. Speaker, it is my pleasure to yield 2 minutes to the
gentleman from Oklahoma (Mr. Watkins) who does not believe we ought to
hold the line and deny people help when people need that help.
(Mr. WATKINS of Oklahoma asked and was given permission to revise and
extend his remarks.)
Mr. WATKINS of Oklahoma. Mr. Speaker, I know the night has been long
for all of us. But to my colleagues, let me say this night is not near
as long as many years ago when our Native Americans were forced by our
government to travel from the east coast over 1,200 miles to the Indian
Territory. Those were long winter nights and many of them died. Thirty-
seven States have Indian reservations. California has the greatest
population of Native Americans. Oklahoma has the highest per capita and
the second largest population, but 37 States.
This is not a rich bill. This also extends a Native American tax
credit, a wage tax credit and also accelerated depreciation. It works.
It works because let me say I have personally experienced helping bring
industry into those areas, because I was raised with the Native
Americans. It is not a rich man's, a rich person's bill. If you have
any compassion at all for those who have the worst economic conditions,
the highest unemployment, the highest underemployment, the highest
outmigration, those with the greatest social problems, of drug problems
and also of alcoholism, if you want to lift them up, this can do it. I
know because just last Saturday, I broke ground on a $700 million power
generation plant that employs hundreds and hundreds of people, many of
them with Native American backgrounds. I also know it works because I
was going to be home Friday to break ground on a second $65 million
operation at the headquarters of the Choctaw Indians in my area of my
boyhood home county where I was raised with the Choctaws.
Let me say to my colleagues, please do not overlook these forgotten
Native Americans. This bill will help lift them out of their problems
into a better way of life.
Mr. RANGEL. Mr. Speaker, I yield 1 minute to the gentleman from New
York (Mr. Nadler).
Mr. NADLER. Mr. Speaker, with Christmas just around the corner, the
Republican leadership is once again handing out its presents to the
large corporations. That might not be so bad if there were any economic
value to this so-called stimulus bill. We should be putting money into
the hands of people most likely to spend it, the unemployed and those
people living paycheck to paycheck. Instead, this bill would give
billions to corporations, hoping they will make products for people who
do not have the money to buy the products. That is not stimulus, that
is corporate giveaway.
Even the portions of the bill directed toward rebuilding New York are
a disappointment. They are simply the same tax incentives that we
passed just last week on the victims tax relief bill. As I noted then,
while we welcome these measures in aiding our long-term economic
revitalization, they do not provide the immediate relief that New York
desperately needs. My distinguished colleague, the gentleman from New
York (Mr. Rangel), has a substitute that has just what we need today.
In particular, he would address the devastation our small businesses
are facing now. The gentleman from New York's provisions would help
small businesses survive the transitional period until Lower Manhattan
is rebuilt and larger businesses return to the area. Only then will
their customers return. But this bill just tells them to wait a few
years. By then it will be too late.
Mr. Speaker, this bill is nothing new. It follows the tired old
Republican script, provide as much money to the wealthy and to the
large corporations as possible and then claim there is not enough for
the people who really need it.
Vote ``no'' on this irresponsible bill.
Mr. THOMAS. Mr. Speaker, I yield myself 10 seconds. The gentleman
from New York really does need to know that out of the $9 billion, New
York gets half a billion; out of the block grant alone, New York gets
another half a billion; and out of that victims tax relief, New York
gets another $5 billion. Even a New Yorker would recognize that a
billion here, a billion there, finally adds up to real money.
Mr. Speaker, it is my pleasure to yield 2 minutes to the gentleman
from Pennsylvania (Mr. English), a valued member of the Committee on
Ways and Means.
[[Page H10856]]
Mr. ENGLISH. Mr. Speaker, American workers need help now. We know
that from my district in northwestern Pennsylvania, and we know that
from the experience around the country. The legislation before us
brings a total of 37 billion new dollars in new benefits for unemployed
workers, including 13 extra weeks of additional unemployment benefits.
This is a critical initiative that we must pass now. With this bill,
the House has made an effort to respond to the needs of the American
worker during the current slowdown. But in doing so, we have also
insisted that a stimulus package must be just that, a stimulus, that
will return our struggling economy back to a growth path.
The single best way to jump-start our sputtering economy today is to
allow companies to quickly recapture the money that they invest in
capital. We know that huge additional amounts of business capital
investment are critical to restart the economy. This bill includes an
expensing provision that is no corporate giveaway. It rewards companies
that make concrete entrepreneurial investments. We know that
productivity is spurred by investment in innovative capital equipment.
The sooner manufacturers can recapture the cost of their equipment, the
faster they can create and maintain good-paying jobs. Workers not only
need a better safety net as provided in this bill, but they need to be
able to hold on to their jobs. Yes, workers want help when they are
unemployed; but more importantly they want a good-paying, stable job.
This bill stimulates the economy to make that possible.
This is a well-balanced bill that addresses both the human needs and
the investment needs of this recession and will help many individuals
and employers who are bearing the brunt of a slowdown that started last
year. We must put partisan differences aside and unite behind this pro-
growth, pro-jobs, pro-worker economic program to get America's economy
growing again.
Mr. RANGEL. Mr. Speaker, I yield 2 minutes to the gentlewoman from
Connecticut (Ms. DeLauro), who is a special assistant to the minority
leader.
Ms. DeLAURO. Mr. Speaker, I rise in strong opposition to this bill.
It does not help our economy and little to help those who are hurt by
the economy.
Times are tough for American families. Unemployment rates are the
highest that they have been in nearly a decade. States are facing
severe budget shortfalls. Families need to know that if they lose their
jobs that their unemployment benefits will be secure and they will have
a way to continue health coverage. This body needs to pass an economic
stimulus package that helps the economy get moving, which assists
families during difficult times.
I ask my colleagues on the other side of the aisle, where have you
been for the last 3 months? This bill and your past actions have done
nothing to help those families. This bill does not include unemployment
benefit increases. It does not guarantee access to affordable health
care coverage. What it does include is a big helping hand to the
Republicans' wealthiest contributors by refunding the corporate minimum
tax, without any real benefits to the economy or to consumers.
This body has bailed out the insurance companies, it has bailed out
the airline industry, and where it has come to the working men and
women of this country, you have dragged your feet. And now, weeks and
months later, the Republicans are trying to pass a bill that is simply
unconscionable. There is no other word for this Republican economic
package than greed. It is an unpatriotic grab on the public treasury.
I urge my colleagues to vote ``no'' on this bill. This leadership
needs to be seriously engaged in negotiations to produce a plan that
will truly help the economy and truly help the families in this
country.
{time} 0215
You have paid not a shred, not a shred of attention, to what has
happened to working Americans, and it is a sham tonight to hear you
talk about working Americans and what their plight is.
Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I was not aware that one party had a monopoly on
compassion for people in need.
Mr. Speaker, it is my pleasure to yield 3 minutes to the gentleman
from Missouri (Mr. Hulshof), a member of the committee.
Mr. HULSHOF. Mr. Speaker, I do not intend to invoke the wrath of the
Chair by mentioning the other body. I do not intend, in fact, to focus
my comments except for on those colleagues who are actually considering
the merits of the bill. Not those, for instance, who say they are in
favor of free trade, but then vote against a free trade bill; not
against those who say they want some sort of stimulus, but then do
everything they can to prevent that stimulus from happening.
What I would like to do is ask a simple question. My colleague, the
gentleman from Ohio (Mr. Portman), asked this question earlier, and I
ask it again: Why are we here?
The answer to that question I think can be found in a videotape that
was released last week of a dinner in Afghanistan when Osama bin Laden
boasted to his dinner companions that the attack on September 11
exceeded his wildest expectations. Yes, those terrorists went into
those Twin Towers in Lower Manhattan, but they did not intend for those
towers of commerce to topple. But they did.
Along with that, our economy has been rocked. Even the Democratic
former Secretary of Treasury has said that we were teetering on a
recession, but clearly we are in that recession now. This is a bill
that addresses the needs of our economy now. It helps rebuild that
sagging economy.
Some of the statements on the floor have been just blatantly wrong.
Certainly every person is entitled to his or her own opinion, but no
one is entitled to his own set of facts, and the facts are these: There
is an immediate stimulus in this bill.
My friend from Maryland said that there was no immediate stimulus. We
are going to have $90 billion over the next 9 months if this bill were
to become law.
My friend from Florida says that the governors have complained. My
own Governor from the State of Missouri has complained that if this
bill were passed, that Missouri would be harmed. We have $8.6 billion
for Medicaid reimbursements and other grants so that States are held
harmless.
In addition to boosting consumer confidence, we accepted an idea, a
constructive idea, from the other side, a $14 billion income
supplement, even if you do not pay income taxes. We boost investor
confidence to small business owners, a short-term incentive to invest
in equipment. Those laid-off workers, this bill is three times more
generous than the bill this House passed a few weeks ago.
For Members who are interested in the policy, Mr. Speaker, inaction
is not an option. For Members of this body who are purely interested in
politics, however, I say this: A ``no'' vote means an extended
recession. The blood of that extended recession will be on your hands.
I urge a ``yes'' vote.
Mr. RANGEL. Mr. Speaker, I yield 1 minute to the hard-working
gentlewoman from Texas (Ms. Jackson-Lee).
(Ms. JACKSON-LEE asked and was given permission to revise and extend
her remarks.)
Ms. JACKSON-LEE of Texas. Mr. Speaker, I almost rise to a point of
being speechless on the last comments being made about the blood being
on our hands. For that I will take more time. For, in fact, what a
tragic statement.
This is not a stimulus package. This is a raid on the Treasury, for
those whose hands are out and in your pockets. The American people are
hurting and the American people are being laid off every single day,
and what the American people need is what the Democrats have offered,
not a sham of an extension of 13 weeks. They need a full loaf of 26
weeks of unemployment insurance, a whole year, because we have not a
recession, we have almost a depression. And the stimulus or the tax cut
that you gave us just a few months ago did not work.
What the American people need now is to have real coverage of health
insurance, not a worthless tax credit that those who are broke and
unemployed with no money will not have the ability to be able to use
those dollars.
We have millions of dollars of worthless tax cuts that are raiding
Social Security, and we are also taking money
[[Page H10857]]
from equipment by 30 percent depreciation.
Mr. Speaker, let me just say: This is a raid on the Treasury. We need
real legislation. This is a worthless bill, and we need to defeat it.
Mr. THOMAS. Mr. Speaker, I yield myself 10 seconds.
Mr. Speaker, I find it ironic that I am in receipt of a letter dated
December 5 which the gentlewoman from Texas's signature is on which
urges the gentleman from Illinois (Speaker Hastert) to include the $9.2
billion accelerated redact distribution contained in the bill.
Mr. Speaker, it is my pleasure to yield 2\1/2\ minutes to the
gentleman from Illinois (Mr. Weller), a valued member of the committee.
(Mr. WELLER asked and was given permission to revise and extend his
remarks.)
Mr. WELLER. Mr. Speaker, my home State of Illinois had bad news this
week. Like many communities across America, one of our Nation's largest
employers, Motorola, headquartered in Illinois, announced they were
going to lay off 8,900 workers yesterday; 8,900 men and women who had
to come home to their families and tell their children they no longer
had a job. Motorola is just one major employer who has already lost
one-third of their employees through layoffs in the past year.
Nationwide we have seen 800,000 workers who have lost their jobs,
8,000 a week, since the terrorist attack on September 11. That is why
we are here tonight, because we want to help these American workers. I
want to help these American workers. My Republican colleagues want to
help these American workers. My hope is my Democratic colleagues will
join with us in helping these American workers who have lost their
jobs.
Frankly, I think we all want these workers to have the opportunity to
go back to work, because every good hard-working American deserves an
opportunity to work.
Let us remember one basic economic fact, and that is that investment
creates jobs, investment grows the economy. Our bipartisan legislation
that is before us rewards investment. The 30 percent expensing, the
accelerated depreciation, rewards investment; investment in computers,
investment in pickup trucks, investment in machinery and other
equipment. Let us remember that when an employer purchases this type of
equipment, there is an employee that makes this type of equipment, as
well as is required to operate it. That creates jobs.
We also have to recognize that there are American companies losing
money this year, and they need investment capital. That is why the NOL
carry-back, the 5-year opportunity to go back and recover from a
profitable year some extra money that can be invested this year in
creating jobs, again rewards investment.
The bottom line is we want to reward investment, we want to create
jobs. This is an opportunity for us to work together. Frankly, it is a
bipartisan bill. My hope is our Democratic friends will set aside their
rhetoric and work to help the American worker.
Let us pass this bill. We need economic security. We need to help
workers. Let us support this legislation. My hope is the other body
will take it up.
Mr. RANGEL. Mr. Speaker, I yield 2 minutes to the gentlewoman from
California (Ms. Pelosi), our new and dynamic minority whip.
Ms. PELOSI. Mr. Speaker, I thank the gentleman for yielding me time
in his capacity as ranking member and for his leadership in fighting
this ill-advised bill.
Mr. Speaker, Christmas is coming, the goose is getting fat; pleased
to put a penny in the old man's hat. That is what this bill reminds me
of tonight.
Corporate America, because of this bill, which puts tax breaks for
corporations over assistance to unemployed workers, says to America's
families, Bah, humbug.
The Director of the Office of Management and Budget has predicted
that we will face deficits through the rest of the Bush presidency.
During the previous administration, years of fiscal responsibility had
built a strong economy and a significant surplus. Now the surplus is
gone. More than half of the lost surplus is directly linked to the Bush
tax cut.
Despite this result, Republicans insist that further tax breaks make
up the bulk of any stimulus package, refusing to provide additional
unemployment and health benefits to displaced workers unless Democrats
agree to give huge tax cuts to corporations.
The goose is getting fatter; pleased to put a penny in the old man's
hat.
Throughout the economic stimulus negotiations, the Democratic
position has been simple: Put unemployed workers first. But the
Republicans have refused. They have refused to increase unemployment
insurance benefits; they have refused to expand health insurance for
unemployed workers who had been employed part-time or on a temporary
basis; they have refused to provide sufficient resources for displaced
workers to purchase health insurance in the private market.
Mr. Speaker, this is really a tragedy, because in the course of the
budget negotiations earlier this year, the House Committee on the
Budget and Senate Budget Committee on a bipartisan basis agreed that in
order to be effective, the stimulus package must be short-term, provide
a quick boost to the economy and not sacrifice our long-term fiscal
stability.
This stimulus package fails on all three fronts, it fails America's
unemployed workers and it fails America's families. I urge a no vote on
this.
Mr. THOMAS. Mr. Speaker, I yield myself 10 seconds.
Mr. Speaker. Under the temporary State Health Care Assistance of $4.6
billion grant, California out of that $4.6 billion would get $482
million. Out of the $9 billion on the unemployment insurance,
California alone would get over $1 billion. That, to me, is real help
to real people in need.
Mr. Speaker, it is my pleasure to yield 3 minutes to the gentleman
from Iowa (Mr. Nussle), the chairman of the Committee on the Budget and
a valued member of the Committee on Ways and Means.
Mr. NUSSLE. Mr. Speaker, I thank the gentleman for yielding me time.
Mr. Speaker, the distinguished minority whip just mentioned the fact
that we had this big surplus going into this year. What happened to it?
Well, of course, the Democrats love to blame the Bush tax cut. The
fact of the matter is, as we all know, only $35 billion went out the
door in the tax cut for this particular year. So where did the rest of
it go? Where did the rest of the $100 billion go that the gentlewoman
talked about?
Is it possible that that had to do with Osama bin Laden? Is it
possible that is the deepening of the pre-attack economic recession? Is
it possible that is what happens when terrorism strikes America? Is it
possible that you can put aside your rhetoric for just one moment and
take a look at the facts, as opposed to just trying to blame people in
the dead of night?
Because do you know what is going to happen? Blaming people in the
dead of night probably is not any more effective than trying to pass
legislation in the dead of night. But one thing will be alive in the
morning, and that is the action that happens. Actions will speak louder
than words.
When we were hit with terrorism, we passed an emergency bill. When we
had to fight a war in a bipartisan way, we funded the military. But
when it came to dealing with the recession, actions speak louder than
words.
The House acted. The House put forward a stimulus bill. The House put
forward ideas and plans. But where has action come from any other place
in this Capitol? Unfortunately, we have not seen much. In fact, it is
easy to talk about page 100 in the Republican bill. There is not even a
bill to talk about in the other body, page 100 or page 1.
So, you can debate action, but when everything is said and done
tonight, you are going to be voting on all of these different
provisions, and you are going to have one opportunity to help New York,
you are going to have one opportunity to help the victims of this
attack, you are going to have one opportunity to deal with this
recession, and that one opportunity will be lost if you continue to
vote no.
I believe that this instance will be a test for this Congress, and
the question will be when the lights come on tomorrow morning and
people want to find out exactly what happened, they will ask the
question, who acted and who did not?
I am really perplexed by the fact that we have been hearing all
tonight about
[[Page H10858]]
how the Senate has not acted. We cannot talk about that. We are not
going to talk about that.
Mr. RANGEL. Do not talk about that.
Mr. NUSSLE. We are not going to talk about that. But I will talk
about something else, and that is they cannot. It is not a matter that
they will not, they cannot. They have not. They have not.
Mr. RANGEL. He is talking about that.
Mr. NUSSLE. No, I am not talking about anything. I am talking about
they cannot. Why have they not, if they can? It is that they cannot. It
is not that they will not.
Mr. RANGEL. Point of order. He continues to talk about that.
Mr. NUSSLE. I am not saying that they will not.
{time} 0230
Parliamentary Inquiries
Mr. THOMAS. Parliamentary inquiry, Mr. Speaker.
The SPEAKER pro tempore (Mr. Thornberry). The gentleman will state
his inquiry.
Mr. THOMAS. Mr. Speaker, can one say they have not acted? I believe
the earlier clarification was that if one stated the fact, and the fact
is that the Senate has not acted, that would not rise to a point of
order.
The SPEAKER pro tempore. The gentleman is correct. It is appropriate
to state factually.
Mr. THOMAS. And a factual statement is, the Senate has not acted?
The SPEAKER pro tempore. The gentleman is correct.
Mr. RANGEL. Parliamentary inquiry, Mr. Speaker.
The SPEAKER pro tempore. The gentleman from New York will state his
inquiry.
Mr. RANGEL. Mr. Speaker, is it proper to state that this body, this
Committee on Ways and Means, has not acted on this bill? Is that
proper?
The SPEAKER pro tempore. Yes.
Mr. RANGEL. I thank the Speaker.
Mr. RANGEL. Mr. Speaker, I yield 30 seconds to the gentlewoman from
California (Ms. Pelosi).
Ms. PELOSI. Mr. Speaker, I thank the gentleman for yielding me 30
seconds to respond to the references made here.
Mr. Speaker, I do not blame my Republican colleagues for debating
this bill in the dark of night. It is a shame. I know why they do not
want the American people to hear about this and what the facts are, but
I want to address the point of the gentleman from California. He rose
and said that there are $482.6 million in Federal funds for the
Republican block grant that California will gain under this bill. What
he failed to mention is that under the Democratic plan, California
would get $722 million, a more than $240 million increase. As far as
that point is concerned, the 53 percent of the deficit is attributed to
the tax cut, not to September 11.
Mr. RANGEL. Mr. Speaker, they say, what bill? It is the bill that
they denied the opportunity for this body to debate, the Democratic
alternative.
Mr. THOMAS. Mr. Speaker, I reserve the balance of my time.
Mr. RANGEL. Mr. Speaker, I will be glad to take some of the time on
the other side if they would like to yield it to us.
Mr. Speaker, I yield 1\1/2\ minutes to the gentleman from
Massachusetts (Mr. Frank).
Mr. FRANK. Mr. Speaker, I agree with my Republican colleagues on one
very important point. This bill is much, much better than the last time
they told us that we had to pass a stimulus bill to save the economy.
How is it better? Liberalism has broken out in that unlikely place.
Member after Member has bragged about how much they are doing for the
unemployed, how much they are doing with health care. All of a sudden
the market does not work, and we have the Republicans telling us how
much more money they are providing out of public funds.
Well, I agree, they are trying; but like most people who are doing
something which they really are not used to, they do not do it well,
because what they do is compound it by adding tax cuts. The gentleman
from Iowa is partially correct, in my judgment. There are many factors
why the surplus that we had has become a deficit. But one thing we do
not do is to respond by deepening that deficit by further tax cuts,
some of which are entirely unrelated to a short-term stimulus because
they are 2 and 3 years.
The biggest difference between the two bills to me is yes, we do say
we want to raise taxes over current law for people who make more than
$300,000. The Democratic plan puts off that further rate reduction for
people who make over $300,000 and prevents the deficit from lessening.
The first President Bush said we could not do a lot of important
programs because we had more will than wallet. The current President
Bush, having inherited a wallet from Bill Clinton, was terrified that
this might lead to real programmatic improvements, so my Republican
colleagues are helping him throw that wallet away. That is a very
important difference.
Yes, they should be proud of doing much better, although not good
enough, in trying to respond to the unemployed; but they cannot do it
without revenues.
The SPEAKER pro tempore. The gentleman from California (Mr. Thomas)
has 12 minutes remaining; the gentleman from New York (Mr. Rangel) has
15\1/2\ minutes remaining. Who yields time?
Does the gentleman from New York seek to yield time?
Mr. RANGEL. Mr. Speaker, it was said that they have 12 minutes and we
have 15\1/2\, and they are yielding to us? Okay.
Mr. Speaker, I yield 1 minute to the gentleman from New Jersey (Mr.
Andrews).
(Mr. ANDREWS asked and was given permission to revise and extend his
remarks.)
Mr. ANDREWS. Mr. Speaker, I know that the unemployed people of our
country need help and our economy needs help, and I think there is
broad agreement on that tonight. Where there is disagreement is over
the two-thirds of the money in this bill that is not spent this year,
Mr. Speaker; $162 billion that does not even get spent this year. It
has nothing to do with stimulating the economy.
If we have learned any lesson in the last 30 years, it is that when
we run the Federal Government by borrowing money, we destroy jobs and
ruin the economy. This bill is as if the last 10 years never happened
around here, because here we go again.
This bill is going to take a quarter of $1 trillion and borrow it
from the Social Security trust fund. Two-thirds of that money has
nothing to do with what is going to happen in the next 12 months. It is
simply going to run up the deficit, destroy jobs, and re-create the
malignancy that burdened this economy and the people of this country
for so long.
We could make an agreement in the short run, but this bill does not
do it. It should be opposed.
Mr. RANGEL. Mr. Speaker, I yield 1 minute to the gentlewoman from
Ohio (Mrs. Jones).
Mrs. JONES of Ohio. Mr. Speaker, I thank the gentleman for yielding
me this time.
Mr. Speaker, the song goes, we wish you a merry Christmas; good
tidings we bring to you and your kin. That is good tidings if you are
unemployed and you have had coverage for 12 to 18 months; it is good
tidings if you are eligible for unemployment compensation. It is good
tidings if you have money to pay for health care and you can come up
with 40 percent. It is good tidings if you can find your way through
the unemployment maze.
The gentleman from Ohio failed to admit that in the State of Ohio,
our Governor closed down unemployment offices, so they are going to be
very hard to find.
But more importantly, as we stand here talking about truth at 2:35
a.m., the truth of the matter is that this bill does not provide all
that it could for unemployed workers because many are left out of the
pocket. If we really wanted to help unemployed workers, we would do one
bill that helps unemployed workers, and then we could say to them, good
tidings we bring to you and your kin. We are going to give you some
money to take care of your families and your Christmas.
Mr. RANGEL. Mr. Speaker, I yield 1 minute to the hardworking
gentleman from New Jersey (Mr. Pallone), especially on health affairs.
Mr. PALLONE. Mr. Speaker, the majority, the vast majority of
Americans who are unemployed cannot afford health insurance under our
current
[[Page H10859]]
system. What the Democrats have proposed is so easy. We simply say,
okay, we will pay for your COBRA benefits or, if you are not eligible
for COBRA, we will pay for your Medicaid benefits and you will get
comprehensive coverage.
I think that what is happening here tonight is that the Republicans
are so kind of wrapped up into their own idealogy, conservative
idealogy, that they just think that what the Democrats have proposed is
somehow a giveaway or some kind of welfare or something that is wrong
for the American people. They should be looking at this practically in
terms of what is actually going to help people get health insurance,
and that is true for unemployment compensation and the other aspects of
this bill.
It really irks me to hear my Republican colleagues act as if they
want to help or do something when they know full well that by bringing
this bill up tonight they are going to do nothing. I am going to get a
call Friday when I go back to my district office about health
insurance; and I am going to have to say, nothing happened in this
House of Representatives because of the Republican leadership and
because of their conservative, right-wing idealogy and their
unwillingness to bend.
National Governors Association,
Washington, DC, November 26, 2001.
Hon. Thomas A. Daschle,
Majority Leader, U.S. Senate, the Capitol, Washington, DC.
Hon. J. Dennis Hastert,
Speaker, House of Representatives, the Capitol, Washington,
DC.
Hon. Trent Lott,
Minority Leader, U.S. Senate, the Capitol, Washington, DC.
Hon. Richard A. Gephardt,
Minority Leader, House of Representatives, the Capitol,
Washington, DC.
Dear Senator Daschle, Senator Lott, Speaker Hastert, and
Representative Gephardt: The nation's Governors support your
negotiations to secure bipartisan action on an economic
stimulus program. As you know, the current budget shortfall
in states is estimated to be about $15 billion and is being
caused primarily by declining revenue growth and the
explosion in the costs of the Medicaid program. As the
economy continues to slow, this shortfall is expected to
increase to between $20 billion and $30 billion. The
unprecedented costs of homeland security, as well as other
provisions being considered as part of the stimulus package,
will add substantially to the growing fiscal crisis. This
growing state budget shortfall will continue to be a major
drag on economic recovery and will offset a portion of a
federal economic stimulus package.
Given this fiscal stress in just about every state, the
nation's Governors number one priority in the economic
stimulus package is for a temporary increase in the federal
medical assistance percentage (FMAP). Our FMAP proposal,
which will cost about $5.5 billion, includes three major
provisions:
A hold harmless provision for any state that would receive
a decrease in its FMAP this year;
An across-the-board one and one-half percent increase in
the FMAP for every state; and
A one and one-half percent increase in the FMAP for states
with higher than average unemployment.
From a state perspective, this proposal has major
advantages over any other provision being considered for the
stimulus package. First, it provides fiscal relief for all
states. Second, 100 percent of the funds would be spent over
the next year, which is a very strong economic stimulus.
Third, it is extremely flexible funding. Fourth, it does not
require the federal government or the states to develop new
legislation or regulations. All other state-administered
programs that are being considered as part of the stimulus
package are targeted to specific populations or programs and
do little to provide fiscal relief to states.
We appreciate the difficult task that you have in
negotiating a final package but we strongly urge you to build
on the existing federal-state partnership by including a
temporary increase in the FMAP in the final stimulus package.
The bottom line is that enactment of a temporary increase in
the FMAP would both offset some of the other provisions in
the stimulus package that would decrease state revenues and
dramatically reduce the drag on the economy of the growing
state budget shortfall.
Sincerely,
John Engler,
Governor.
Paul E. Patton,
Governor.
Mr. THOMAS. Mr. Speaker, it is my privilege to yield 15 seconds to
the gentlewoman from Connecticut (Mrs. Johnson).
Mrs. JOHNSON of Connecticut. Mr. Speaker, let me just set the record
straight. Your bill does not pay people's COBRA benefits. It pays a
percent of the COBRA premium, and through our bill we would pay a
percent of the COBRA premium, and all of the rhetoric on the floor
about how people could not afford their portion is just as big a
problem in your bill as in ours. So do not get out there and say we pay
the COBRA benefits.
Mr. THOMAS. Mr. Speaker, I yield myself 30 seconds.
Some people might think it is the late hour when they listen to the
math on the other side of the aisle. I have to assure those who believe
it is the late hour that, actually, they do this in daylight as well.
I read off the amount of money that was going to California. The
immediate retort from the gentlewoman from California was, yes, but we
give more than you do, and yet we hear the refrain that we put
ourselves into a deficit. Well, if we are going to double every number
we deal with and you are telling us we put us into deficit, I think you
ought to take a look at what you are doing as well.
Mr. Speaker, it is my pleasure to yield 2\1/2\ minutes to the
gentleman from Georgia (Mr. Collins), a very valuable member of the
Committee on Ways and Means.
Mr. COLLINS. Mr. Speaker, I thank the gentleman for yielding me this
time.
I have always heard that money talks and B.S. walks. Well, Mr.
Speaker, there is enough money in this bill to talk, but there is a lot
of rhetoric here tonight that should walk.
Yes, there is a difference of opinion as to how this health care and
this unemployment should be handled, but the truth of the matter is, it
is being handled. If there are questions by constituents of how and who
they get in touch with when it comes to their health care, I am pretty
sure they have the number in the third district of Georgia of
Congressman Mac Collins's office and they will call and we will be glad
to help them.
There is a lot of rhetoric here about this is for the rich
corporations. The rich corporations are only a name. It is the people
who work for those businesses that actually make up those businesses.
But there are a lot of small businesses in this country that need help.
I am going to tell my colleagues about one in particular. Two young men
operating a trucking company in Jackson, Georgia, doing fairly well for
themselves, deep in debt, a lot of expenses, a lot of overhead. They
are working people. Their business is off because of what has happened
recently in this economy. It is down some 25 to 30 percent.
This particular bill, based on the tax provisions that will encourage
people to invest capital, either into buildings or into equipment, will
help those two young men, because someone will order some material and
they will get to deliver it; one of their drivers will have another
load to haul. That is how we stimulate an economy. Piece by piece,
worker by worker. Encouraging investment.
We are taking away something in this bill too that is in the tax
codes that punishes people for making investments. We are reducing the
burden of the alternative minimum tax. It is a punishment for people to
invest, small or large. But it is not the entity; it is the people.
People that we are trying to get back into the marketplace, back into
the job place, and that is the best thing we can do for anyone who is
out of work who works for an employer or who has their own health
insurance. Get their job back. Put them back into the workplace. That
is what will happen with this bill here.
This is the last train leaving the station, folks. Do not fail, do
not fail those working people at home. Small business, or if we want to
call it the big fat cat corporations, it is whoever we want to call it,
but it is the workers, the people that work for those entities. They
need help
Mr. RANGEL. Mr. Speaker, I yield myself such time as I may consume.
I am so glad that the gentlewoman from Connecticut (Mrs. Johnson) is
on the floor. No one has worked harder to provide adequate health care
for the majority of Americans and continues to work to expand that
coverage.
While she does refer to our bill providing only 75 percent of COBRA
and fails to talk about the Medicaid provisions that we have to provide
for additional care, the truth of the matter is that there is no
Democratic bill that we can debate. We have been denied the opportunity
to have our substitute on
[[Page H10860]]
the floor. But I think it is safe to say for those people who wondered
what went on in the stimulus conference that we had, I think the
chairman of that conference, who happens also to be the chairman of the
Committee on Ways and Means, would agree that we accomplished a lot in
recognizing that we did need short-term tax incentives to stimulate the
economy. We never challenged that.
{time} 0245
We never challenged that. I think that he would also agree that in
the area of unemployment compensation, while there was a wide gap, we
thought if we continued to work, that even that gap could be covered.
The major problem we had was providing health care under a new
program that was introduced to us, we thought, by the gentleman from
California (Mr. Thomas) and now we find out by the President, that
would allow people to get health insurance with a credit, and if they
had no tax liability, they would be able to negotiate with an advance
refundable credit.
I ask the gentlewoman from Connecticut (Mrs. Johnson), this advance
refundable credit, it is more or less, I would suspect, some type of a
voucher that would allow the person with no tax liability to go
somewhere and try to get health insurance, try to negotiate for it. And
while there would be a cap on the cost, still there is some thought
that the program would work by allowing them to get into the system.
What I have been saying all night is that if the gentlewoman does not
talk about health insurance, I will not talk about page 100. But I have
looked through this, and we were unable to find any way to make the
credit system work in conference. One of the Senators who was in charge
said that we should go to the President, and the White House could not
find any way to handle it, so the way they handled it on the floor is
to say the program does not exist in terms of what they do with advance
refundable payment.
I may be wrong, but all I am saying is that the only thing that I see
that refers to how an unemployed person with no health insurance and no
tax liability, when we ask how do they get negotiated into the system
in order to get health insurance, it is on page 100. If there is
another part of this bill that tells how people can really use the
advance payment of a displaced person using this so-called credit, I
would like the gentlewoman to refer to the page.
Mr. Speaker, I yield 30 seconds to the gentlewoman from Connecticut
(Mrs. Johnson).
Mrs. JOHNSON of Connecticut. Mr. Speaker, I thank the gentleman for
yielding time to me.
Mr. Speaker, I did not use the 75 percent versus the 60 percent in
the gentleman's bill, because in the gentleman's bill, he allows only
75 percent.
Mr. RANGEL. I do not have a bill. I am saying, in the gentlewoman's
bill, how do they negotiate the credit?
Mrs. JOHNSON of Connecticut. There are two questions here.
First of all, let me answer the subsidy one. We provide 60 percent
subsidy of the premiums, and we let people buy that plan that CRS has.
Mr. RANGEL. But how do they get in the system? Where do they go?
Mrs. JOHNSON of Connecticut. Here it is. When they go and apply for
the unemployment compensation benefits, it says in the bill they
certify they are unemployed with the Social Security number.
Mr. RANGEL. What page?
Mrs. JOHNSON of Connecticut. Let me finish, I will get the page in a
minute. It says it right there.
Announcement by the Speaker pro tempore
The SPEAKER pro tempore (Mr. Thornberry). If the Members would
suspend, the Chair would request that all Members yield time to one
another and direct their comments to the Chair.
The time is controlled by the gentleman from New York (Mr. Rangel).
If the gentleman would like to yield time to the gentlewoman, then it
would be the gentlewoman's time to use.
Mr. RANGEL. I yield myself such time as I may consume.
Mr. Speaker, if anyone can tell me how they get these credits. All I
am saying is that I respect that the gentlewoman knows that we had a
bill and she studied it and she would like to critique it. I only wish
that the majority would have allowed us to bring the bill on the floor
so it could be critiqued, one.
Two, if we are talking about credits as a substitute for the existing
program, the one question that I keep asking is, if they have the
credit but no tax liability, how does a guy go to the HMO and try to
get insurance? The answer is that the tax credit is advanced, so they
can get it up front, they do not have to wait for the Treasury to give
it to them. So I accept that.
I am saying if there is this advance credit, where do they go and
what do they do with it? The answer is that there is no answer. They
make it up as they go along, because the Secretary of the Treasury is
the one that is going to determine at some point in time sometime next
year how the program works.
But if Members are trying to find out how it works tonight on the
floor, as we say in New York, forget about it.
Mr. Speaker, I reserve the balance of my time.
Mr. THOMAS. Mr. Speaker, it is my pleasure to yield 30 seconds to the
gentlewoman from Connecticut (Mrs. Johnson.)
Mrs. JOHNSON of Connecticut. Mr. Speaker, if the gentleman will read
page 93 to 108, he will find that a person who is noticed goes to the
unemployment office and gets unemployment compensation and
certification that he is eligible for unemployment compensation. He
then gives that certification that his employer gave and is charged
only 40 percent of the premium. The rest is collected from the employer
from the Department of the Treasury. It is very simple.
Now, when there is $13 billion out there, does the gentleman think
insurance companies are not going to make it real easy to pay these
premiums? Of course they are.
But back to this premium thing, remember, the gentleman provides a 75
percent premium and it is only for the most expensive plans. Seventy-
five percent of the most expensive plans, the COBRA plans, which are
usually $400 a week, is less of a subsidy than 60 percent of the
average premium according to the Congressional Research Service of $200
a month. So ours is actually more generous than the gentleman's.
Mr. THOMAS. Mr. Speaker, it is my pleasure to yield 2\1/2\ minutes to
the gentleman from Kentucky (Mr. Lewis), a member of the Committee on
Ways and Means.
Mr. LEWIS of Kentucky. Mr. Speaker, I thank the gentleman for
yielding time to me.
The basic question tonight, Mr. Speaker, is where do jobs come from.
If the Members will indulge me, I want to give some of my personal
experiences.
Tonight the other side of the aisle has indulged in the old political
rhetoric of class warfare. That is kind of getting old. It is over and
over and over again that we hear it.
Let me tell the Members about my history. I was born in eastern
Kentucky in the mountains, in a log cabin. My father was a tenant
farmer. He had to work his way up to get a card as a pipefitter in a
union. He just retired a few years ago from that.
He had to suffer through several recessions where he was out of work,
and yes, we certainly appreciated the unemployment check. But number
one and most of all, he wanted his job as soon as he could possibly get
it back.
I worked for a steel mill. I was a United Steelworker, belonged to
the union. There were times that I was out of work and had to depend on
the unemployment check. I appreciated that. But I wanted my job back.
If I had the choice of extending my unemployment and the economy
being stimulated through some tax credits and some tax incentives for
the steel company I worked for, or my father would have chosen more
unemployment or getting some stimulus into the economy where the
construction jobs would start back up, do Members know what he would
have chosen and what I would have chosen? I would have chosen the
stimulus to those companies, those big, fat corporations that provided
me a job.
That is what we are talking about tonight: People want jobs, not
unemployment checks. But we will help them. We want to help them. We
want to help them with health care, we want to help them with
unemployment checks, but number one, we want to help them get their
jobs back; and those that have jobs, to keep their jobs.
[[Page H10861]]
My son, my daughter-in-law, work in a manufacturing company right
now. If we do not do something about this economy, they are in danger
of losing their jobs. Let us do something tonight to protect their jobs
and put people back to work. That is what America needs.
Mr. RANGEL. Mr. Speaker, I yield myself such time as I may consume.
As I stated, Mr. Speaker, when we were in conference, we wanted to
follow what the President had suggested and to take in consideration
tax cuts, many of which were not liked by our side, but we thought it
was a question of give and take. But there is one thing that we
insisted upon, and that is that either we take everything or we take
nothing.
So the things that we were willing to do, some of those things we put
in our substitute bill as an enticement in believing that if the House
was going to be fair enough to give us an opportunity to say that we
have a better plan, that Republicans and Democrats would have an
opportunity to at least hear the merits of the plan, since ours had
substantial tax cuts.
But we just refuse to believe that the unemployed have to be held
hostage to the tax cuts, so therefore, we insisted that until we could
work out the differences, there would be no agreement.
The complexity of finding an answer to how do you properly give
coverage to unemployed people is a problem that the gentlewoman from
Connecticut (Mrs. Johnson), the gentleman from California (Mr. Stark),
and Members of this House have wrestled with for months and perhaps
years. We have 44 million people without any type of insurance at all,
and that is increasing. The recession is causing more people to become
unemployed, and therefore, more people without insurance.
So we struggle to find a way. The majority insisted that we discard
the way that we have because, as the gentlewoman from Connecticut (Mrs.
Johnson) said, it is too expensive. Others said it is a Cadillac
system, and some said we are paying for more than people deserve
because they are unproductive people.
They talk about how you can get cheaper policies, and that you were
given more. But the fact is, there is a cap on what the other people
are giving. So given 60 percent, if you cannot afford the 40 percent,
you are just out of insurance, because you are there to negotiate with
an HMO that is in it for profit, and one cannot really negotiate from
that position.
Certainly if we can just picture for one moment that we have lost our
jobs and that we have lost our COBRA benefits, and that what we do have
are tax credits, can Members imagine what they, their wives, or their
kids, would have to go? Where do they go with the credits? What do they
do? Who do they ask?
The gentlewoman from Connecticut (Mrs. Johnson) said people would be
fighting for those credits. Do we wait until it is time to pay taxes
and find out that there is no tax liability, and then get a refund? Oh,
no, says the gentleman from California (Mr. Thomas), they do not have
to wait. We asked, why do we not have to wait? They said, ``Because we
have a provision.''
What is the provision? The provision is that even before we filed the
tax, they know we have no tax liability so they advance the refund, and
we take that someplace and negotiate.
We said to the gentleman from California (Mr. Thomas), that is pretty
complicated. We do not understand how that works. He did not understand
either, to be honest. He said, it is the President's program. So what
did we do? We sent it over to the President. We never heard from
anybody since.
So I was really surprised that what I used to refer to as the Thomas
tax credits, since the statement is attributed to him, is now the
President's tax credit, and I still could not find how do people use
the advance refundable credit.
The truth of the matter is the gentleman from California (Mr. Thomas)
did not know then, he does not know now, and it is not in the bill. He
may be able to tell us how he would like for this to work, or he may
talk about his newly found good relationship with the with the
Secretary of the Treasury, or he may say, trust the President.
But there is one thing that he is not going to be able to say, and
that is anything concerning how to use the advance credit in order to
get insurance, except that on page 100 and only on page 100 they say,
check with the Secretary of the Treasury. At some time he will come up
with some program.
{time} 0300
What we had suggested is maybe you do not like COBRA. Maybe you think
it is too expensive. Maybe you think it is too inclusive. But the whole
idea was to do something and do it now.
This was not supposed to provide for a permanent change in health
delivery system. It was not a reform bill. The President did not say
everything had to be right. Maybe some of the loopholes that we
expanded we went too far. But he said give me something, make it
temporary and do it now. Which meant what? We could have kept our
system for one year, brought in Medicaid to supplement it and to make
certain that everyone had coverage. And at least use it as a testing
ground that if it was abused, if people was using more than they
should, than we could get together and come up with a good Medicaid/
Medicare reform bill.
As it is now, we are left with nothing except your imagination and
whatever the Secretary of Treasury may come up with. And the reason we
broke down in our negotiations is because there was no provisions there
for refundable advanced credit for people to get insurance. There is no
provision now, and that is why we are opposed to the bill.
Mr. Speaker, I yield back the balance of my time.
Mr. THOMAS. Mr. Speaker, I yield myself 30 seconds.
The gentleman is entitled to his opinion but not his own set of
facts. The bill did and the bill does not have a cap on the payment.
And what the payment and what the gentleman has not really shared
because with us is that his plan a subsidy for the COBRA program does
not exist. Currently people who are unemployed take their own money and
pay 102 percent of the cost. That is the structure in place. The
gentleman's subsidy program does not exist and has not been created.
Where it will be created is with the Secretary of the Treasury, the
same place our program is created.
Mr. Speaker, I yield 3 minutes to the gentleman from Oklahoma (Mr.
Watts), the chairman of the Republican Conference.
Mr. WATTS of Oklahoma. Mr. Speaker, I am about to share a story that
some of my colleagues will have probably heard me share, but I am going
to share it again because I think it is very fitting for the hour.
Back in 1981, I was about 45 days from graduating from the University
of Oklahoma and I had gone home one weekend to spend the weekend with
my parents, and my father said to me as we sat up in the front room of
his home one night until about 2:00 in the morning, and daddy and I
solved all of America's problems according to our own opinions and
thoughts.
After about 3 hours of discussions he said to me, he said, Junior, I
think I want to go to college. And I said, Daddy, why do you want to go
to college? You are 57 years old. You are a double bypass heart
patient. Mom has diabetes. You have these cows, this rental property.
You are pastor of the church. Why do you want to go to college? And he
replied to me, he said, I would like to see what makes you guys fools
when you get out. He said, you guys seem to lose your ability to use
common sense.
What this package is about it is about common sense, trying to
address the needs of the American people. Common sense should say to
us, we have got people who are unemployed, who are without work, who
are without health insurance benefits. Common sense should say to us,
our moral fiber should say to us, let us address the needs of these
people who need this assistance. Common sense should say to us, we do
not need more taxes. We need more taxpayers. How do you created more
taxpayers? You allow dollars to stay in the hands of the people who are
risking their capital in order to either sustain jobs or to create
jobs. Now, that is common sense.
What does this package do? This bill helps laid off workers by
providing a generous tax credit for Americans who lost their jobs so
they can buy health insurance. It extends unemployment benefits by 13
weeks, 3 months. It gives
[[Page H10862]]
small businesses help so they may create more jobs or help to sustain
the jobs that they currently have.
We give tax rebate checks to lower income Americans and reduce the
income tax for middle income Americans. These are initiatives that
achieve important goals helping these who need immediate assistance
while creating jobs and giving a boost to the economy.
Again, we are not proposing more new taxes or more taxes as our
friends on the left would do because we understand that is not the way.
I asked my colleagues to do the right thing concerning this vote, this
bill. It is not a be-all or an end-all, but it is a solid package to
help folks who are suffering from hard times while looking ahead to the
future.
Let us reject yesterday's fear and go into tomorrow with great
confidence. Let us reject yesterday's rhetoric and go for tomorrow's
solutions.
Mr. Speaker, I urge my colleagues to support this bill on December
18, or 19. What day is it? Whatever day it is, I ask my colleagues to
support this legislation.
Mr. THOMAS. Mr. Speaker, each day is slipping away.
Mr. Speaker, I yield such time as he may consume to the gentleman
from California (Mr. McKeon).
(Mr. McKEON asked and was given permission to revise and extend his
remarks.)
Mr. McKEON. Mr. Speaker, I rise on behalf of the American people who
need this stimulus package to get back to work.
Mr. Speaker, I rise in support of H.R. 3529, the Economic Security
and Worker Assistance Act. This important piece of legislation will
bolster our economy in many ways, but I am particularly pleased that it
addresses the needs of our dislocated workers and their families.
This legislation incorporates President Bush's proposal to expand the
existing National Emergency Grants, found within the Workforce
Investment Act, to assist our workers. These grants complement the
workforce development resources available in states to ensure an
effective response to significant worker dislocation events. Currently,
these grants are used to provide a variety of employment and training
assistance to workers who have been laid off. These include (1) job
training and reemployment services; (2) income support for those that
are not eligible or have exhausted their eligibility for unemployment
compensation, if they are enrolled in training; and, (3) supportive
services such as transportation and child care to allow individuals to
get back to work.
The proposal before us today would expand the allowable supportive
services to include temporary health care coverage premium assistance.
A state would be required to use at least 30 percent of its grant to
provide temporary health care coverage of its choosing. The Economic
Security and Worker Assistance Act provides $4 billion to enhance this
critical safety net for workers. Using the National Emergency Grant as
a means to provide additional assistance is the right one for our
workers and their families.
First, it is flexible, allowing each governor to implement a seamless
package of assistance for the needs of the dislocated workers in his or
her state.
Second, it can be implemented quickly since it uses an established
mechanism to provide needed assistance without creating a new federal
bureaucracy.
Finally, the program is targeted and temporary. The assistance aims
to help those affected by the economic downturn, including families
impacted by the terrorist attacks of September 11, get back to work.
By passing this legislation, we will keep our commitment to helping
every worker return to work while ensuring that they and their families
have the critical support they need at this difficult time. I encourage
my colleagues to support America's working families and vote yes on the
economic stimulus package.
Mr. THOMAS. Mr. Speaker, I yield the remainder of my time to the
gentleman from Illinois (Mr. Hastert), the Speaker of the House of
Representatives.
Mr. HASTERT. Mr. Speaker, first of all, this Congress has come
through an extraordinary year, a year where a lot of us never thought
that the challenges and problems and probably the grief that many
Americans have faced we would have to deal with, but we did.
I want to commend my colleagues on both sides of the aisle for facing
up from time to time, standing tall and getting things done that were
important to the American people. We have stood together. We have faced
problems. We have done those things that secured this Nation. But there
is one more problem. We also see an economic downturn. We can discuss
why that happened. Whether it was the result of September 11 or it was
in the mix a year ago, we do not know; but we know it is here. And we
know when this country faces problems, this is the body that the
American people look to to find solutions.
And somehow from time to time we, as Americans, we, as elected people
here, pull together our collective strength and find solutions to those
problems. We are human, and solutions many times are not perfect.
I remember a conversation I had with the gentleman from Missouri (Mr.
Gephardt). He was concerned when we did the airline bill and we did a
couple other things so that American workers were taken care of,
because at that time there were people out of work. But today there is
a lot more people out of work. And those people out of work are on
unemployment compensation.
We want to extend that unemployment compensation. This bill does it.
It does it to the tune of $30 billion and gives these people a lot of
hope and a lot of time to get back on their feet and to find that new
job. The problem is, too, some of those people do not have health care.
They do not have the COBRAs opportunity. If you have COBRA that means
you have to go out and pay 102, 103 percent of your premium.
We tried to find a solution to that problem too. We tried to find it
together. In finding it together, we said there is a couple of ways to
do this. But the way you do it quickest is give people that little
code, that little voucher if you want to say it, I hate to use that
word, that you can take and say here is my voucher. Here is my number.
I am certified. Here is a check for 40 percent of my health care to
your employer or to your insurance company, it depends on what State
you are in. You know that. And in 38 States for people who are not
covered by COBRA, are not in one of those big corporations, do not want
to have one of those Cadillac health care bills, they also have the
ability to have many COBRAs. Because you can take that there to small
businesses that are not covered by COBRA and extends that insurance
coverage.
We do something else. There is another group of people out there that
work for companies that do not offer insurance. And they have the
ability in this bill to take that code number and a check for 40
percent of their coverage and take it to buy where they buy insurance
every day, whether it is down at the Main Street insurance office or
some cooperative, people that they buy and do business with every day.
But this bill does more than that. It also puts money in people's
pockets. If we are going to change this economy, if we are going to
change this system that we have today, we have to get consumer
confidence back. And we do that.
We also say every family in this country that works has had some type
of security, some types of wealth that have given us a safety net,
whether it is a 401(K) or whether it is a savings plan or it is a
mutual funds of some kind. And almost every family since September 11
has lost that wealth or some of that wealth.
We are saying let us kick that market and let us get it going. Let us
do some of those things that spur this economy and people's confidence
of putting money back in the market. Let us bring that wealth back to
American families, every family that has a pension or a savings account
or a 401(k) is tied to securities. We need to get that done.
Finally, the engine in this country that creates jobs is the magic of
people taking capital and creating wealth, taking capital and creating
jobs, building buildings, buying machinery, investing in ideas, and you
have to have the capital to do that. And this bill also does that and
brings that capital into a place where people can invest it and create
the jobs and restore this country back to where it should be.
Now, do we do it this way or that way? Is this a perfect way? Well, I
say it happens to be a centrist way, because folks on both sides on the
aisle, on both sides of the rotunda have basically come together and
said this is what we should do, and we should do it.
[[Page H10863]]
We should do it for this Nation. We should do it for our people who are
unemployed. We should do it for the victims in New York because we
addressed that too. It is time to get it done.
We have heard a lot of rhetoric. The hour is late. I know this has
been a stressful couple of weeks, tempers flair and we get on edge. But
I think as this Congress we have done a pretty good job over the years
and over the last year, especially. I thank the Members for their help
and support when we needed to have that.
There is one more time that we need your help and support, not just
us, the American people need it. Here is the solution. Here is the
ability to do it, and now is the time to do it. I thank Members for
their attention. I thank Members for their consideration. Let us vote
this bill and get it done.
Mr. SANDLIN. Mr. Speaker, I rise to oppose the misdirected economic
stimulus plan, H.R. 3529, Economic Security and Recovery Act of 2001
because the bill fails to balance worker assistance provisions and tax
cuts while wrecking years of Federal fiscal discipline. The economy is
stagnating and people with a tenuous grip on the economic ladder fear
rising unemployment rates and health costs will cause further pain. I
am disappointed that Congress could not come to an agreement on an
economic stimulus package and I fault those who cling to rigid
ideological positions as a justification for blocking compromise and
comity. The plan we will consider today does not do enough to focus on
the hundreds of thousands of recently unemployed Americans and enacts
risky corporate tax cuts and rebates that would further weaken our
fiscal health.
Squandering an opportunity to secure health care coverage for the
unemployed and tax reductions to encourage business growth sends the
message to American people that Congress is not serious about economic
recovery. Mr. Speaker, the Congress acted in a bipartisan manner to
give the President the tools necessary to fight the war on terrorism.
Democrats and Republicans compromised to pass legislation in the best
interest of the country. I believe that many Democrats and Republicans
were willing to compromise on an economic stimulus package but,
unfortunately, ideology trumped pragmatism and common sense.
Last spring, I voted for the $1.3 trillion tax cut advocated by
President Bush. At the time, our budget surplus projections looked
strong for years to come. Unlike the present legislation, that tax cut
contained relief for working American families and allowed most
Americans to share in the expanding economy. I have great reservations
that the $250 billion total cost of the bill over 10 years will further
exacerbate our fiscal picture and balloon our Federal deficit.
In light of the September 11 tragedy, the priority of Congress and
our country must be securing the safety of Americans from further
terrorist attack and rooting out terrorist evil around the globe. We
are making progress on bringing to justice those responsible for the
terrorist attacks and our efforts will forestall future attacks. I
believe, however, that more can be done to safeguard the American
people and strengthen Homeland Defense. As a Member of the Blue Dog
Coalition--a group of fiscally moderate Democrats--we proposed, as part
of an economic stimulus plan, a homeland security component. This
fiscally responsible initiative addresses the fundamental questions of
strengthening our domestic security through targeted initiatives. The
security package could also complement legislation aimed at stimulating
the economy in the short term by providing relief for those who lost
their jobs as a result of September 11. The proper course of action
must focus on short-term assistance and avoid long-term business tax
cuts that will skew our budget picture and endanger the Social Security
trust fund.
I believe that the components of a balanced and fiscally responsible
stimulus plan exist and a compromise can be reached. H.R. 3529,
however, fails both of these criteria by enacting long-term corporate
tax reductions and rebates with dubious short-term economic benefit
that will lead to a return of Federal budget deficits. America needs a
shot in the arm, not a misdirected tax bill in disguise as economic
stimulus.
Mr. UDALL of New Mexico. Mr. Speaker, I rise today to voice my strong
opposition to this legislation being brought forth under the guise of a
stimulus for a sluggish economy.
Once again, just like H.R. 3090, this sham of a stimulus bill is
geared toward providing tax breaks to the wealthiest individuals and
corporations in our country. Extending for an additional 5 years a tax
break for multinational financial corporations? Cutting the 27 percent
income tax rate to 25 percent? How many of the men and women who have
lost their jobs because of the economic slowdown are going to benefit
from these provisions?
Instead of discussing ways to make sure that these individuals are
able to afford health insurance for themselves and their families, we
are talking, once again, about retroactive corporate tax cuts. We are
talking about a tax cut that leaves out 75 percent of all Americans
because they don't have high enough income to be in the 27 percent tax
bracket.
It was recently announced by the National Bureau of Economic Research
that the recession began in March, yet since that time, the House of
Representatives has not passed any legislation or committed one dime
for worker relief.
I urge my colleagues to oppose this shameful legislation that
benefits only the wealthiest corporations and individuals in this great
country; a country, Mr. Speaker, that was built on the hard-working
shoulders of the types of men and women who are excluded from this very
legislation. Oppose this bill.
Mr. MOORE. Mr. Speaker, I rise in opposition to H.R. 3529, the
Economic Security and Worker Assistance Act of 2001.
In October, when this House debated and voted on its first stimulus
package, I voted against both the majority proposal and the minority's
substitute. At that time, I voiced my concern those two competing
proposals had one deficiency in common: they both failed to effectively
balance our Nation's priorities and needs.
In October, our Nation was at war and I argued that never, in the
history of this country, during a time of war, have we cut taxes or
spent our precious resources on items unrelated to achieving our
wartime objectives. I also argued that we had critical needs both
domestically and globally to defeat terrorism, to protect the safety
and security of the American people, and to assist the hundreds of
thousands of Americans who lost their jobs as a result of the events of
September 11.
In October, the President called on this Congress to help our Nation
recover from the September 11 terrorist attacks. He called on us to
secure our airlines, to strengthen law enforcement, to give him the
tools he needs to win the war on terrorism, and to assist those
Americans affected by the economic consequences of the terrorist
attacks. This Congress heard the call of the President and responded in
a bipartisan fashion to each and every one of these needs, except for
one--we have failed to provide for those who lost their job through no
fault of their own.
Mr. Speaker, since October this Congress has accomplished a lot and
much has changed. We have secured our airlines. We have strengthened
law enforcement and we are winning the war on terrorism. We should
applaud the bipartisan efforts that made these accomplishments
possible.
Since October, however, we have witnessed other changes that should
demonstrate to each and every one of us that there is much more to
accomplish. We experienced first-hand the continued threat of terrorism
in the form of anthrax and recognized our deficiencies in providing for
our homeland security needs. We learned that the Federal Government ran
a unified deficit of $63 billion in the first two months of this fiscal
year. We heard from the Director of the Office of Management and Budget
that we will face deficit spending for the remainder of the President's
term. And, most chillingly, since October over 700,000 Americans have
lost their jobs.
Mr. Speaker, while much has changed since October, much remains the
same. Our Nation is still at war, our States and municipalities are
still at risk, and our displaced workers are still in need of
assistance.
This Congress' response is also the same: we are once again debating
a bill to reduce revenues without offsets while in a time of war; we
are debating a bill that does nothing to shore up homeland defense; we
are debating a bill that fails to effectively respond to the needs of
our displaced workers; and I will continue to oppose legislation that
fails our economy, that fails our cities and States, and that fails our
workers.
On December 10, I received a letter from the President calling on
Congress to send him legislation to expand unemployment and health
insurance benefits by the end of the year, ``regardless of the success
or failure of any other element of the economic stimulus measures now
pending.''
In response to the President's call, I introduced H.R. 3471, the
Worker Opportunity and Relief Compensation (WORC) Act, which would meet
the pressing needs of our Nation's unemployed. Among other items, this
bill would expand access to unemployment and extend these benefits for
13 weeks. This bill would also provide assistance for individuals to
help cover the cost of COBRA health insurance premiums.
I urge my colleagues today to vote against this legislation and
support the President and me in passing a stand-alone bill that will
help our Nation's workers before this Congress adjourns for the year.
Ms. WATERS. Mr. Speaker, I rise in opposition to the Republican so-
called economic
[[Page H10864]]
stimulus plan and in support of the Democratic substitute. I am
committed to the goals of improving the economy in general. I am
specifically committed to providing relief to the working men and women
of America and those who have recently lost their jobs. Many of these
individuals did not fully realize the benefits of the recent economic
expansion and are now being hit the hardest by this current downturn. I
believe that it is crucial that their needs must be the top priority in
any economic stimulus package, and any authorized spending should be in
a form that can get it into communities as quickly as possible.
I believe that true economic stimulus will be achieved by investing
in certain existing economic development programs whose benefits far
exceed their cost to the government. These programs invest Federal
dollars in communities, resulting in job creation and economic growth.
My proposal, which was adopted by the Democratic Caucus, increases
funding to the Community Development Financial Institutions Fund,
section 108 loan guarantees, Empowerment Zones/Enterprise Communities,
and Community Development Block Grants.
These proposals are based on provisions of my bill, H.R. 3033, the
Job Creation and Economic Revitalization Act of 2001, which provides
additional funding for current programs that invest in traditionally
overlooked communities, creating jobs and building the economy. The
funds allocated to these programs represent a small fraction of the
total benefits to communities. For example, over a 2-year period, the
CDFI awarded $114 million to organizations who, in turn, made $3.5
billion in community development loans and investments.
Similarly, the section 108 loan program is a very low subsidy
program--$15 million in appropriated funds this year will yield $609
million in loans.
I am deeply disappointed that this economic stimulus package was not
the product of bipartisan negotiations. This bill represents a failure
to put aside petty partisan politics for the greater good. I strongly
urge my colleagues to oppose this legislation and support the
Democratic substitute.
Mr. BECERRA. Mr. Speaker, it's deja vu all over again. Nearly 2
months ago, the House narrowly approved a partisan, budget busting
economic stimulus package laden with tax cuts for corporations and the
affluent that failed to meet the dramatic needs of those suffering the
worst effects of the current economic downturn.
Now, here we are again, for a second-go-round with largely the same
package of misguided tax cuts and insufficient unemployment and health
care assistance for recently laid-off workers. On all counts--tax
relief, emergency unemployment benefits, and health care coverage--this
bill is inadequate and should be defeated.
The Democratic leadership of the House and Senate have time and time
again made good-faith, fiscally responsible offers on the tax,
unemployment, and health care provisions in this bill. But, in each and
every case, the White House and the Republican congressional leadership
have resisted these attempts to reach a middle-ground and instead have
insisted on the inclusion of their partisan proposals.
I am extremely disappointed that my colleagues across the aisle are
bringing up this legislation today. It is clear to me, and clear to so
many of our constituents who desperately need the help promised to them
by the President and Congress earlier this fall, that this bill will
never become law in its present form. We should not be wasting either
the time or the effort on this wholly political enterprise.
House and Senate leaders, Republicans and Democrats alike, should
return to the negotiating table and craft a balanced and responsible
bill, one that stimulates the economy and deals with the immediate
economic and healthcare needs of my constituents in Los Angeles, the
citizens of California, and all those suffering throughout the Nation--
without threatening the Social Security and Medicare surpluses, without
jeopardizing our ability to meet our homeland and national security
needs, and without endangering our long-term economic recovery.
While most others may have given up hope that such a consensus,
bipartisan agreement can be reached, I continue to believe that it is
possible. I say this because broad support exists for a significant
number of provisions that could be the basis of such a bipartisan
agreement. For example, both Republicans and Democrats have included in
their stimulus packages language that provides for bonus depreciation,
more generous small business expensing, extended carryback of business
losses, and extension of several expiring tax benefits. Beyond these
tax items, there are several others that have bipartisan support and
would contribute to an economic turnaround, but, regrettably, were
never considered for inclusion in the bill before us today.
For instance, I believe the House should have considered a proposal
to allow a life insurance company that merges with a nonlife insurance
company to file a consolidated tax return. Congress long ago recognized
that while an affiliated group of corporations consists of multiple
legal entities, it is, in economic reality, a single business
enterprise and should be permitted to file a single consolidated tax
return so that the income and losses of the entire economic unit may be
considered as a whole for tax purposes. However, groups that include
life insurance companies--indeed, only such affiliated groups--are
unable to take advantage of this common sense tax policy and cannot
fully consolidate their income in a single tax return.
These limitations not only add enormous and unjustifiable complexity
to the accounting requirements of these companies, but they also hinder
their ability to compete with other corporate financial services
groups. Even more frustrating, these restrictions will disrupt the
economic recovery of an industry so dramatically impacted by the
terrorist attacks of September 11 since most corporate groups with life
insurance affiliates will be unable to offset their losses against
total net income from the current year or carry the losses back to
prior years. I hold out hope that we will be able to address these
limitations before this Congress adjourns. The time for leveling the
playing field for life insurers is long overdue.
In addition, the problem of runaway movie and television productions
continues to threaten the well being of many sectors of the American
economy. When moviemakers come to town, hotels are filled, restaurants
and caterers gain new business, air and ground transportation provides
and travel agents experience increased demand for their services. It's
no wonder that several foreign governments have adopted tax and other
incentives to attract motion picture and television production
projects--and the jobs and spending that come with them. Now, more than
ever we must counteract these off-shore incentives. The same businesses
most affected by runaway production have also been those most
dramatically impacted by the aftermath of the terrorist attacks on
September 11.
I cannot overemphasize that this is not just about Hollywood or the
State of California. Runaway film and television production hurts
states and cities across the country--from Illinois to Arkansas, and
North Carolina to Washington. We must stop the hemorrhaging of American
jobs and businesses to foreign shores. Unfortunately, legislation to
keep movie and television production in the United States and generate
jobs and revenue in communities throughout the country by providing
wage-based tax credits for productions of films, television or cable
programming was not considered as a component of the economic stimulus
package. Again, I am hopeful that Congress will consider this proposal
of such importance to so many Americans in the very near future.
Finally, three pillars--the bull market, unparalleled consumer
confidence, and a robust housing market--supported the historic
economic growth of the last decade. Over the course of the past year,
however, we have seen dramatic declines in both the stock market and in
consumer confidence. Of the three, only the housing market has remained
unbowed and continues to support a teetering economy. With this in
mind, I believe it would have been very constructive to include
proposals to ensure the strength and vitality of this sector. We could
have stimulated the economy by putting the dream of homeownership
within reach of more and more Americans simply by expanding the
existing tax credit for first-time homebuyers. For little cost and
tremendous and proven return, we could have updated the low-income
housing tax credit to encourage additional private sector development
of valuable housing stock. These, too, are issues Congress and the
President should address next year.
Mr. Speaker, in closing, I must reiterate my profound disappointment
that we have spent so many hours tonight debating for the second time
an economic stimulus package that should not have been considered by
this House the first time around. Time is short, I know, but there is
enough for the bipartisan congressional leadership to go back to the
negotiating table and craft a bipartisan, fiscally responsible economic
stimulus and worker assistance bill that truly lives up to its name. We
need a bill that will give families, workers, businesses, and the whole
economy a shot in the arm--and we shouldn't go home until we do.
Mr. LANGEVIN. Mr. Speaker, I rise in strong opposition to this
partisan stimulus package, which offers little assistance to those most
vulnerable in the current economic climate.
Any economic stimulus package must include continued health coverage
and unemployment benefits for workers who have lost their jobs.
Unfortunately, this measure includes cosmetic changes from previous
proposals, and relies on large, permanent multi-year tax cuts for
business and higher-income taxpayers, while providing relatively few
benefits for the unemployed.
[[Page H10865]]
More than 2 million Americans have already lost their jobs this year,
with over 700,000 layoffs since September 11th. Our national
Unemployment Rate for November has jumped to 5.7%, the highest level in
6 years. In Rhode Inland, unemployment has risen to 4.1%. Clearly,
America's workers need our help now.
For this reason, I support the Democratic substitute that contains
substantial unemployment benefits and health coverage for dislocated
workers while stimulating the economy with temporary business and
individual tax cuts. Unlike the underlying bill, the substitute pays
for itself by delaying the top income tax rate cut, which was approved
earlier this year and benefits only the nation's wealthiest Americans.
I urge my colleagues to support the Democratic substitute and to
reject this ineffective economic stimulus package, which fails to
provide the relief and stimulus that America's workers desperately
need.
Ms. KILPATRICK. Mr. Speaker, the bill we consider today is a
misnomer. It is not as it purports itself to be . . . an ``economic
stumulus'' bill. Rather, it is a corporate windfall tax break bill. The
bill will do little to turnaround the economy and to assist those
working Americans who, through no fault of their own, have lost their
jobs. The bill is almost a clone of the tax cut bill we passed in
October. I voted against the first bill, and I intend to vote against
this one.
Sixty-three percent of the $250 billion in tax breaks contained in
this bill go to corporations. Some of the tax loopholes proposed in
this bill will allow corporations to shelter interest income from
offshore accounts at a cost of $3 billion over three years. The bill
cuts the corporate alternative minimum tax by about two-thirds and pays
out rebates over a stretched out period of time. The alternative
minimum tax was enacted to ensure that America's largest corporations
would pay a minimum amount of tax, just as average taxpayers do. The
majority on the Ways and Means Committee obviously think otherwise, and
it is proposing to virtually eliminate all future minimum corporate tax
liability. That means we will return to the days when many corporate
entities, who earn millions and billions in profits, will incur a tax
liability lower than the average individual wage earner.
The bill will also accelerate the reduction of the 27 percent income
tax rate to 25 percent. The main features of this tax bill are easy to
figure. For the most part, this is an instant replay of the corporate
tax cut bill this House passed in October by the resounding margin of
two votes. The majority party in this House is bent on shifting the tax
burden away from corporations and individuals of privileged means-
income sources that can afford to pay more in taxes--to the average,
lunch bucket taxpayer. That doesn't do much for the cause of tax equity
nor for the cause of stimulating the economy.
Now this bill is not completely bad. It has some good features that I
support. For example, the bill extends unemployment compensation
benefits by 13 weeks. As Martha Stewart says: ``That's a good thing.''
I also understand that the bill contains tax relief provisions for
those victims who perished in the September 11 terrorist attacks, the
anthrax attacks and the 1995 Oklahoma City bombing and to businesses in
New York City adversely affected by the terrorist attacks. That, too,
is a provision I support. But my support for the bill ends there.
I have consistently voted against industry-specific bailout packages
such as the Airline Assistance and the terrorism insurance bills. I did
so because this House and the majority leadership of this House were
willing to provide assistance to corporate America who suffered from
the September 11 tragedy while it ignored victims of those attacks who
became jobless in the wake of the economic downturn that ensued. The
Leadership gave us assurances that a worker relief package would be
crafted during the week of September 24. That week came and went with
no worker relief package. More weeks passed without any worker relief
package.
It has been almost three months since we received those assurances
that the Leadership brings up an economic stimulus package which
contains some benefits for the jobless, but falls well short of being
regarded as a ``worker relief'' package. The package of benefits
contained in this measure is too little and very late.
We are being forced to vote on a bill that no one has read or
studied. What we know of the bill's contents comes from the press
releases and comments from Chairman Thomas's office. The Members of the
other side of the aisle refer to this measure as a compromise. If this
bill represents a compromise, it is a compromise only among those who
serve in the majority.
The Members who crafted this bill are not sincere in their intention
to assist the victims of the current economic downturn. They argue that
the tax cuts proposed in this bill will help keep those currently
employed on the job. To their credit, there is some merit to that
argument. But when it comes to providing the jobless income assistance
and affordable health insurance benefits to help them through these
tough economic times, they fall short of the mark.
The priorities of the majority are clearly defined. Bail out the
airline industry. Bail out the commercial insurance industry. But
forget and neglect those working families who have been displaced by
the imperfections of a business cycle that went into a tailspin
following the September 11th attack on America.
Mr. KIND. Mr. Speaker, I rise today in opposition to the bill, the
second economic stimulus bill to be considered this year. While it is
necessary to provide an economic stimulus bill to be considered this
year. While it is necessary to provide an economic stimulus package to
jump start our currently sagging economy, I do not believe this is the
time for Congress to use the economic slump and the war against
terrorism as an excuse to revisit a previous tax agenda in a budget-
busting frenzy. I am disheartened that the House Leadership has, again
this year, chosen to give big corporations a tax break without
seriously considering relief for the American workers who need
immediate help.
The nation's unemployment rate jumped to 5.7 percent last month, the
highest level in more than six years. Nearly a half million people
joined the ranks of the unemployed in November, bringing the total of
8.2 million. The rapidly increasing unemployment rate is an unfortunate
trend. The rise in the number of unemployed has not, however,
influenced the House Leadership to bring to the floor a bill providing
substantial worker relief. Rather, they have brought an economic
stimulus bill to the floor nearly identical to the one passed in
October, without appreciating the suffering working families and their
need for short-term assistance. They, after all, are the ones who need
the money and will spend it thereby stimulating the economy by
generating demand. It is critical that an economic stimulus package
help those families who have lost their jobs.
Furthermore, the bill will cost nearly $250 billion over five years.
I cannot, in good conscience, support this reckless piece of
legislation that will put our country back into deficit spending just
to ensure that the Leadership secures its priority tax cuts. These tax
cuts will not have the desired effect of boosting our economy; rather,
they will threaten the fiscal discipline that prompted much of the
1990's economic boom. Instead of finding reasonable offsets to pay for
the stimulus bill, it will be paid by taking funds out of the Social
Security and Medicare surplus, which nearly everyone here in Congress
agreed not to touch. In addition, a return to deficit spending will
increase long-term interest rates, and will slow down any foreseeable
economic recovery.
This is not the time to pursue our individual agendas, it is the time
to pass a fiscally responsible short-term package that pushes our
economy forward and provides relief for families in need. I urge my
colleagues to oppose this bill. This rush to cut corporate taxes to
stimulate economic recovery is at best a questionable economic
prescription and at worst one that could do far more harm than good.
Mr. BENTSEN. Mr. Speaker, for far too many Americans, this economic
stimulus package is a ``day late and a dollar short.'' For months, my
constituents have shared their concerns about the state of our economy.
They knew we were in a recession even before September 11th and the
official economic benchmarks reflected as much. The stock market was
sagging, corporate investment was declining and consumer confidence was
down. The September 11th attacks on New York and Washington sent
economic shockwaves throughout the nation and the reverberations are
still being felt in my State, especially for those Texans whose
livelihoods depended on the aviation and hospitality industries. In
Houston, the sudden collapse of the Enron Corporation has dimmed the
Holiday spirits of the over 4,500 Enron employees who received word
last week that Enron was terminating their employment.
Mr. Speaker, Americans have been courageous during this uncertain
time and, all they asked of us, is to do what we can to ensure that the
period of unemployment for effected workers is brief and that their
families are provided with the income support and health care they need
during this difficult time. Regrettably, the Republican Leadership has
kept us here at this late hour for a bill that misses the mark on both
counts. In its current form, there is little chance that H.R. 3529 will
be able to stimulate the economy or meet the emergency income and
health care needs of the recently-unemployed.
Mr. Speaker, H.R. 3529 is the Republican Leadership's second stimulus
bill in as many months. While this measure is an improvement over its
predecessor which offered a broad menu of tax cuts, including a repeal
the corporate alternative minimum income tax (AMT) and a substantial
cut to capital gains taxes, and did not extend unemployment benefits,
it overshoots our short term economic
[[Page H10866]]
needs for long-term, long-promised corporate tax cuts. Although this
bill is supposed to be for short term economic stimulus, it would cost
approximately $75 billion in fiscal year 2003 and $55 billion in fiscal
year 2004, years when the economy is expected to be in recovery and
further stimulus is not expected to be needed. Mr. Speaker, let's not
forget that during that same period, the federal unified budget is
slated to be in deficit. This $250 billion package is offered with no
offsets, which exacerbates our budgetary condition, not to mention,
undermines our commitment, to pay down the national debt. The fact that
the Treasury Department told us that the nation will need to increase
its debt limit to $6.7 trillion is not incidental.
Though I believe that most of the tax provisions in this will do
little to stimulate our economy, there are a few features which I
believe have merit. Specifically, the $300 supplemental tax rebate for
individuals ($600 for couples) who received only a partial tax rebate
or no rebate under last spring's tax cut and the provision reducing the
recovery period for leasehold improvements, from 39 years to 15 years,
stand out as provisions that have a reasonable likelihood of having a
stimulative impact.
Mr. Speaker, last Spring, back when we were ``awash in money'' and
had off-budget surpluses for ``as far as the eye could see,'' we were
told that the President's $1.35 trillion tax cut would provide stimulus
to prevent this country from going into a recession. Now that the
surpluses have turned to deficits, we are being asked to pass another
tax bill, which, according to the Joint Committee on Tax, will cost
$250 billion over ten years, adding $150 billion to the national debt.
I am disappointed that this measure fails to take any specific steps
to improve Unemployment Insurance (UI) coverage for low wage workers,
many of whom entered the workforce through welfare reform in the last
1990s. This population is half as likely to receive unemployment
benefits as compared with higher-wage workers. Additionally, H.R. 3529
misses an enormous opportunity to spur consumer spending by failing to
increase UI benefits for families who are sure to spend the money
quickly. I would note that I am pleased that the drafters of H.R. 3529
have seen fit to include provisions calling for $9.2 billion in Reed
Act distributions to the States. Knowing that the State of Texas' needs
its Reed Act distribution, approximately $644 million, to meet its
present commitments, I spearheaded a bipartisan effort with my
colleague, Rep. Pete Sessions, to urge negotiators to include this
important provision.
Finally, Mr. Speaker, H.R. 3529's healthcare provisions are truly
lacking. The Republican Leadership proposes to create a new program
through a temporary 60% refundable tax credit for use in purchasing
either COBRA or individual market health insurance policies. The
Treasury Department will have to design and create this program,
denying assistance for months. Mr. Speaker, in the absence of an
employer healthcare subsidy of, on average, 73%, towards the health
care premiums of its employees' families, how will the vast majority of
the newly unemployed pay for the COBRA premiums that average $7,000
annually for family coverage? Realistically, how much can this tax
credit help?
In conclusion, Mr. Speaker, as a senior member of the House budget
Committee, I was heartened by the unanimity of opinion among House and
Senate Budget leaders, on a bipartisan basis, as well as the President,
that any economic stimulus package must be temporary, and designed to
create an immediate, short-term impact, without jeopardizing our long-
term economic security. As I said before, Mr. Speaker, H.R. 3529 misses
the mark on every count.
Mr. CRANE. Mr. Speaker, I am pleased that every version of stimulus
legislation--whether originating in the Administration, either body of
Congress, Republican or Democrat--has included a provision to allow
companies which have incurred losses this year to carry back those
losses to offset income taxed more than two years ago. This is a very
good concept and would actually provide money to these companies and
help stimulate the economy. Taxpayers should be taxed on net income,
not on some higher amount. If an accounting period longer than one year
more appropriately reflects economic reality, we should not be hesitant
to reflect that reality in our income tax laws.
Unfortunately, the legislation before us does not remove the barriers
denying some groups of corporations, which include life insurance
companies, to net all their losses against the income they earned this
year when they compute their federal income tax liability. I understand
the constraints we were under in drafting the bill, but many of these
corporate groups have incurred unexpectedly large losses this year and
would be greatly helped if they were allowed to be taxed on net income,
rather than some higher amount.
Along with twenty-five colleagues on the Committee on Ways and Means,
I introduced legislation earlier this year to amend the consolidated
return provisions of the Internal Revenue Code. The bill, H.R. 909,
repeals three separate limitations on the ability to net all losses
against income within an affiliated group of corporations if one or
more of the group members is a life insurance company. We have received
no objections to the bill on tax policy or other grounds, and two of
the three provisions were included in the Joint Committee staff
recommendations of changes that would significantly reduce the
complexity of the tax laws.
But, more importantly, it is simply wrong to impose income tax on
more than net income. Not only is it bad tax policy, but it has a major
economic impact when events such as those of September 11th occur. I
would hope that we will be able to enact legislation early next year to
accomplish this. These restrictions should have been repealed long ago.
In today's economic environment, we should delay no longer.
Mrs. CAPITO. Mr. Speaker, I rise in strong support of H.R. 3529, the
Economic Growth and Security Act.
As we all know, in late November, the National Bureau of Economic
Research reported that the United States was in an economic recession.
This news only confirmed what many of us already feared--that the
American economy is slumping and thousands of American workers are
losing their jobs.
Their intuition was not off the mark. As of late November,
unemployment is on the rise and is at its highest level in six years.
My Congressional District in West Virginia has been especially hit
hard by the economic downturn. In recent weeks, several manufacturing
plants in West Virginia have announced plans to lay off workers because
of the unfavorable economic climate.
Clearly, Congress must pass an economic stimulus package that boosts
the ailing economy, preserves and creates new jobs and aids America's
workers and families who are the unfortunate victims of this recession.
This bill accomplishes all of these goals, as it is a positive step
towards economic recovery.
With provisions for improved health care and unemployment benefits,
this stimulus plan will address the needs of the hard-working men and
women of America. At the same time, the plan will secure our long-term
economic health by stimulating job creation and economic growth.
Mr. Speaker, over three months have passed since the tragic events of
September 11. In October, the House passed a sound economic security
plan. Legitimate differences have prevented our ability to send a final
to the President. This past weekend, the President said that if we do
not pass an economic security package, an additional 300,000 American
jobs could be lost. This is unacceptable.
Today, we return to the floor with a new bill that reflects the
spirit of true bipartisanship and compromise. We must send this
stimulus package to the President's desk before concluding our work
this session.
Mr. CHAMBLISS. Mr. Speaker, people across America, across Georgia are
losing their jobs in very alarming numbers. This is a very critical
time for our economy; it is very fragile. It is time this Congress act
to help the people of this country.
The terrorists who killed thousands of innocent people would like
nothing better than also to destroy the American economy. Small
businesses and individuals in Georgia, as well as the rest of the
country are facing difficult financial situations. The actual loss of
jobs or the threat of a loss of jobs is hitting all of us: our
families, our neighbors, and our friends. It is time for Congress to
respond.
We need an economic stimulus package that is going to lower the tax
burden that is impeding our economic growth and create the incentives
to bring people back to work. The people who are losing their jobs in
Georgia do not want partisan bickering from their representatives up
here in Washington--they want results back home.
We need to put people back to work and get our economy back on its
feet. Families are hurting, unemployment is rising, and people need
help. The American people deserve action on an economic stimulus
package now. It is time to put partisanship aside and work together to
turn our economy around.
It has been almost two months since my colleagues and I passed the
Economic Security and Recovery Act. The House of Representatives worked
as quickly as possible to provide our constituents with the complete,
comprehensive, and broad-based economic assistance. Since then, the
bill has languished; even though stimulating the economy remains one of
the highest priorities for Americans, second only to our Nation's fight
against terrorism.
This economic package is a major step to regaining a healthy Georgia
economy. Each of the components will help stimulate different areas of
the economy and promote economic growth and jobs. Our economy has
weathered
[[Page H10867]]
turbulence in the past during times of war and peace times, but a
sound, reasoned economic growth package, such as the one we debate
today, will significantly help to put America on the right track back
to prosperity.
Mr. EVANS. Mr. Speaker, once again the Republicans have presented an
economic stimulus bill that falls short in aiding those most affected
by the recession and continues to reward the wealthy and traditional
Republican party donors. Under a ``compromise'' plan, Republicans offer
a bounty of corporate tax giveaways at the behest of layed-off workers
and their families who are left out in the cold during this Christmas
season.
The Republican economic stimulus continues the long-standing
Republican tradition of corporate giveaways that does nothing for the
constituents of Western and Central Illinois. Republicans continue to
insist on eliminating the corporate alternative minimum tax, which
would allow thousands of profitable corporate giants to go untaxed.
Republicans also continue to accelerate the Bush tax cut, which has
erased the budget surplus and reversed four years of budget surpluses.
Economists universally agree that these types of tax cuts will do
nothing in the short term to stimulate the economy or aid those most
affected by the economic downturn.
Americans who have lost their jobs in this economic downturn need
immediate help to ensure that they do not also lose their health
insurance. But, the Republican's health tax credit proposal falls
dramatically short by only providing a partial tax credit to purchase
COBRA or private health insurance. By relying on tax credits,
Republicans expect recently layed-off workers to come up with hundreds
of dollars for overpriced health insurance, while waiting months for
government reimbursement of a partial tax credit.
My congressional district has witnessed thousands of layoffs and
cutbacks. I am uncompromising on the issue of helping ordinary
Americans and therefore support a compassionate and fiscally
responsible Democratic economic stimulus plan that provides immediate
assistance to those most affected by the recession. The Democratic plan
expands COBRA and provides assistance in purchasing COBRA coverage.
Moreover, by providing coverage through COBRA, we can guarantee
affordable coverage even for workers with preexisting conditions and
make a promise that will not have to wait until April 15th to be
realized. The Democratic plan also increases unemployment benefits and
ensures recently unemployed low income workers receive fair
unemployment benefits.
According to the non-partisan Congressional Budget Office, the
Democratic plan would reach almost three times as many displaced
workers as the Republican plan. Overall, the Republican stimulus plan
would hurt the economy by growing the budget deficit by over $200
billion dollars, including the necessary debt maintenance.
Mr. WATTS of Oklahoma. Mr. Speaker, Christmas is coming and Americans
are hurting. The economy is in a recession and employees are losing
their jobs.
Markets need a boost so retirement security can once again be secure.
John and Sally Doe back home in the heartland need our help.
The House of Representatives passed a good economic security bill in
October. It's now December 19th--and the Senate has yet to pass a
similar bill to help get our economy back on track. The argument coming
from the other body and the other side of the aisle is centered upon
more benefits for the unemployed. So, here we are today--with a new
bill to give more benefits to the unemployed. We have addressed our
critics' concerns and included their suggestions in the legislation
before us. If that isn't bipartisanship at its best, I don't know what
is.
This bill helps laid-off workers by providing a generous tax credit
for Americans who have lost their jobs so they may buy health
insurance. It extends unemployment benefits by thirteen weeks. It gives
small businesses help so they may create more jobs. And we will give
tax rebate checks to lower-income Americans and reduce the income tax
for middle-class Americans. There are initiatives that achieve
important goals; helping those who need immediate assistance, while
creating new jobs and giving a boost to the economy.
The president told the country this past weekend: if Congress doesn't
pass an economic security package, 300,000 jobs could be lost. Doing
nothing is the same as aiding and abetting a sinking ship. We need to
step up to the plate and help get our economy back on track.
Mr. Speaker, this bill is not a Republican proposal, nor is it a
Democrat proposal. It is a fair and balanced mix of ideas from both
parties and both chambers.
Our constituents back home want relief. They want help. They need
jobs. They need us to do something to address the situation we are in.
We did not create the problem--but we certainly have the tools to fix
it.
So, Mr. Speaker, I ask my colleagues to do the right thing and vote
for this bill. It is not the be-all or end-all, but it is a solid
package to help folks who are suffering through hard times while
looking ahead to the future. If we do nothing, the American people
lose. If we pass the economic security bill, we will offer hope for our
neighbors looking to have decent health care and good jobs to provide
for their families.
Mrs. CHRISTENSEN. Mr. Speaker, I rise in strong opposition to the
stimulus bill being brought today by the Republican leadership.
As I have come to the floor on previous occasions to say, we must
take care of the people of this country who have lost jobs and health
coverage because of September 11th, before we do anything else. Not
only is it the right thing to do for them and for our country, but also
it is one of the best stimuli we could put in place to begin to get our
economy back on track.
We have provided help for Airlines, we have provided help for
insurance companies, we have allowed our own cost-of-living increase to
go into effect, and now what our leaders would have us do is to provide
ill-advised and really unnecessary tax cuts to the largest of
corporations, and let hundreds of thousands of working people go
without.
Some say there is not enough money to allow the temporary one-year
extension of the Unemployment Program and an extra twenty-six weeks of
unemployment benefits that the Democrats are asking for. My solution is
a simple one! Eliminate or at least delay the tax cut until we know the
money will be there to fund it, and do not repeal the alternative
minimum tax for corporations, save one year's relief, at most.
I commend my colleagues Charles Rangel, John Dingle, and Dick
Gephardt, as well as those in the other body who worked hard to reach a
good compromise that helps the most people. They did the very best they
could. And I applaud them for not giving in or giving up on the people
who are depending on them for relief that they will not get otherwise.
I urge my colleagues on this side of the aisle to hold fast and vote
``no'' on this bill, and I also invite and urge my other colleagues to
do what is right for this country, and do the same.
The SPEAKER pro tempore (Mr. Thornberry). All time for debate has
expired.
Pursuant to House Resolution 320, the bill is considered as read for
amendment and the previous question is ordered.
The question is on engrossment and third reading of the bill.
The bill was ordered to be engrossed and read a third time, and was
read the third time.
motion to recommit offered by mr. rangel
Mr. RANGEL. Mr. Speaker, I offer a motion to recommit.
The SPEAKER pro tempore. Is the gentleman opposed to the bill?
Mr. RANGEL. I am, Mr. Speaker.
The SPEAKER pro tempore. The Clerk will report the motion to
recommit.
The Clerk read as follows:
Mr. Rangel moves to recommit the bill H.R. 3529 to the Committee on
Ways and Means with instructions that the Committee report the same
back to the House forthwith with the following amendment.
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE, ETC.
(a) Short Title.--This Act may be cited as the ``Fiscal
Stimulus and Worker Relief Act of 2001''.
(b) References to Internal Revenue Code of 1986.--Except as
otherwise expressly provided, whenever in this Act an
amendment or repeal is expressed in terms of an amendment to,
or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.
(c) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title, etc.
TITLE I--TAX PROVISIONS
Subtitle A--Supplemental Rebate
Sec. 101. Supplemental rebate.
Subtitle B--Depreciation Benefits and Expensing
Sec. 111. Special depreciation allowance for certain property.
Sec. 112. Temporary increase in expensing under section 179.
Subtitle C--Extensions of Certain Expiring Provisions
Sec. 121. Allowance of nonrefundable personal credits against regular
and minimum tax liability.
Sec. 122. Credit for qualified electric vehicles.
Sec. 123. Credit for electricity produced from renewable resources.
Sec. 124. Work Opportunity Credit.
Sec. 125. Welfare-to-Work credit.
Sec. 126. Deduction for clean-fuel vehicles and certain refueling
property.
[[Page H10868]]
Sec. 127. Taxable income limit on percentage depletion for oil and
natural gas produced from marginal properties.
Sec. 128. Qualified zone academy bonds.
Sec. 129. Cover over of tax on distilled spirits.
Sec. 130. Parity in the application of certain limits to mental health
benefits.
Sec. 131. Delay in effective date of requirement for approved diesel or
kerosene terminals.
Sec. 132. Subpart F exemption for active financing.
Sec. 133. 1-year extension of supplemental grant program under the TANF
program.
Sec. 134. 1-year extension of contingency fund under the TANF program.
Subtitle D--Other Provisions
Sec. 141. Alternative minimum tax relief with respect to incentive
stock options exercised during 2000 or 2001.
Sec. 142. Carryback of certain net operating losses allowed for 5
years.
Sec. 143. Temporary waiver of 90 percent AMT limitations.
Sec. 144. Expansion of incentives for public schools.
TITLE II--WORKER RELIEF
Subtitle A--Temporary Unemployment Compensation
Sec. 201. Short title.
Sec. 202. Federal-State agreements.
Sec. 203. Temporary Supplemental Unemployment Compensation Account.
Sec. 204. Payments to States having agreements under this subtitle.
Sec. 205. Financing provisions.
Sec. 206. Fraud and overpayments.
Sec. 207. Definitions.
Sec. 208. Applicability.
Sec. 209. Special Reed Act transfer in Fiscal Year 2002.
Subtitle B--PREMIUM ASSISTANCE FOR COBRA CONTINUATION COVERAGE
Sec. 211. Premium assistance for COBRA continuation coverage.
Subtitle C--Additional Assistance for Temporary Health Insurance
Coverage
Sec. 221. Optional temporary medicaid coverage for certain uninsured
employees.
Sec. 222. Optional temporary coverage for unsubsidized portion of COBRA
continuation premiums.
Subtitle D--Temporary Increases of Medicaid FMAP For Fiscal Year 2002
Sec. 231. Temporary increases of medicaid FMAP for fiscal year 2002.
TITLE III--TAX RELIEF FOR VICTIMS OF TERRORISM
Subtitle A--Relief Provisions For Victims of Terrorist Attacks
Sec. 301. Income and employment taxes of victims of terrorist attacks.
Sec. 302. Estate tax reduction.
Sec. 303. Payments by charitable organizations treated as exempt
payments.
Sec. 304. Exclusion of certain cancellations of indebtedness.
Sec. 305. Treatment of certain structured settlement payments and
disability trusts.
Sec. 306. No impact on social security trust fund.
Subtitle B--General Relief for Victims of Disasters and Terroristic or
Military Actions
Sec. 311. Exclusion for disaster relief payments.
Sec. 312. Authority to postpone certain deadlines and required actions.
Sec. 313. Internal Revenue Service disaster response team.
Sec. 314. Application of certain provisions to terroristic or military
actions.
Sec. 315. Clarification of due date for airline excise tax deposits.
Sec. 316. Coordination with Air Transportation Safety and System
Stabilization Act.
Subtitle C--Disclosure of Tax Information in Terrorism and National
Security Investigations
Sec. 321. Disclosure of tax information in terrorism and national
security investigations.
TITLE IV--NEW YORK RECOVERY FROM TERRORISM
Sec. 401. Expansion of work opportunity tax credit targeted categories
to include certain employees in New York City.
Sec. 402. Tax-exempt private activity bonds for rebuilding portion of
New York City damaged in the September 11, 2001,
terrorist attack.
Sec. 403. Additional advance refunding permitted of certain bonds.
Sec. 404. Gain or loss from property damaged or destroyed in New York
Recovery Zone.
Sec. 405. Credit for individuals residing in Lower Manhattan.
TITLE V--FREEZE OF TOP INDIVIDUAL INCOME TAX RATE AND DOMESTIC SECURITY
TRUST FUND
Sec. 501. Freeze of top individual income tax rate and Domestic
Security Trust Fund.
TITLE I--TAX PROVISIONS
Subtitle A--Supplemental Rebate
SEC. 101. SUPPLEMENTAL REBATE.
(a) In General.--Section 6428 (relating to acceleration of
10 percent income tax rate bracket benefit for 2001) is
amended by adding at the end the following new subsection:
``(f) Supplemental Rebate.--
``(1) In general.--Each individual who was an eligible
individual for such individual's first taxable year beginning
in 2000 and who, before October 16, 2001--
``(A) filed a return of tax imposed by subtitle A for such
taxable year, or
``(B) filed a return of income tax with the government of
American Samoa, Guam, the Commonwealth of the Northern
Mariana Islands, the Commonwealth of Puerto Rico, or the
Virgin Islands of the United States,
shall be treated as having made a payment against the tax
imposed by chapter 1 for such first taxable year in an amount
equal to the supplemental refund amount for such taxable
year.
``(2) Supplemental refund amount.--For purposes of this
subsection, the supplemental refund amount is an amount equal
to the excess (if any) of--
``(A)(i) $600 in the case of taxpayers to whom section 1(a)
applies,
``(ii) $500 in the case of taxpayers to whom section 1(b)
applies, and
``(iii) $300 in the case of taxpayers to whom subsections
(c) or (d) of section 1 applies, over
``(B) the amount of any advance refund amount paid to the
taxpayer under subsection (e).
``(3) Timing of payments.--In the case of any overpayment
attributable to this subsection, the Secretary shall, subject
to the provisions of this title, refund or credit such
overpayment as rapidly as possible.
``(4) No interest.--No interest shall be allowed on any
overpayment attributable to this subsection.
``(5) Special rule for certain nonresidents.--The
determination under subsection (c)(2) as to whether an
individual who filed a return of tax described in paragraph
(1)(B) is a nonresident alien individual shall, under rules
prescribed by the Secretary, be made by reference to the
possession or Commonwealth with which the return was filed
and not the United States.''.
(b) Technical Correction.--
(1) In general.--Subsection (b) of section 6428 is amended
to read as follows:
``(b) Credit Treated as Nonrefundable Personal Credit.--For
purposes of this title, the credit allowed under this section
shall be treated as a credit allowable under subpart A of
part IV of subchapter A of chapter 1.''.
(2) Conforming amendments.--
(A) Subsection (d) of section 6428 is amended to read as
follows:
``(d) Coordination with Advance Refunds of Credit.--
``(1) In general.--The amount of credit which would (but
for this paragraph) be allowable under this section shall be
reduced (but not below zero) by the aggregate refunds and
credits made or allowed to the taxpayer under subsection (e).
Any failure to so reduce the credit shall be treated as
arising out of a mathematical or clerical error and assessed
according to section 6213(b)(1).
``(2) Joint returns.--In the case of a refund or credit
made or allowed under subsection (e) with respect to a joint
return, half of such refund or credit shall be treated as
having been made or allowed to each individual filing such
return.''.
(B) Paragraph (2) of section 6428(e) is amended to read as
follows:
``(2) Advance refund amount.--For purposes of paragraph
(1), the advance refund amount is the amount that would have
been allowed as a credit under this section for such first
taxable year if--
``(A) this section (other than subsections (b) and (d) and
this subsection) had applied to such taxable year, and
``(B) the credit for such taxable year were not allowed to
exceed the excess (if any) of--
``(i) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(ii) the sum of the credits allowable under part IV of
subchapter A of chapter 1 (other than the credits allowable
under subpart C thereof, relating to refundable credits).''.
(c) Conforming Amendments.--
(1) Paragraph (1) of section 6428(d), as amended by
subsection (b), is amended by striking ``subsection (e)'' and
inserting ``subsections (e) and (f)''.
(2) Paragraph (2) of section 6428(d), as amended by
subsection (b), is amended by striking ``subsection (e)'' and
inserting ``subsection (e) or (f)''.
(3) Paragraph (3) of section 6428(e) is amended by striking
``December 31, 2001'' and inserting ``the date of the
enactment of the Fiscal Stimulus and Worker Relief Act of
2001''.
(d) Reporting Requirement.--For purposes of determining the
individuals who are eligible for the supplemental rebate
under section 6428(f) of the Internal Revenue Code of 1986,
the governments of American Samoa, Guam, the Commonwealth of
the Northern Mariana Islands, the Commonwealth of Puerto
Rico, and the Virgin Islands of the United States shall
provide, at such time and in such manner as provided by the
Secretary of the Treasury, the names, addresses, and taxpayer
identifying numbers (within the meaning of section 6109 of
the Internal Revenue Code of 1986) of residents who filed
returns of income tax with such governments for 2000.
(e) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this
[[Page H10869]]
section shall take effect on the date of the enactment of
this Act.
(2) Technicals.--The amendments made by subsection (b)
shall take effect as if included in the amendment made by
section 101(b)(1) of the Economic Growth and Tax Relief
Reconciliation Act of 2001.
Subtitle B--Depreciation Benefits and Expensing
SEC. 111. SPECIAL DEPRECIATION ALLOWANCE FOR CERTAIN
PROPERTY.
(a) In General.--Section 168 (relating to accelerated cost
recovery system) is amended by adding at the end the
following new subsection:
``(k) Special Allowance for Certain Property Acquired After
September 10, 2001, and Before January 1, 2003.--
``(1) Additional allowance.--In the case of any qualified
property--
``(A) the depreciation deduction provided by section 167(a)
for the taxable year in which such property is placed in
service shall include an allowance equal to 30 percent of the
adjusted basis of the qualified property, and
``(B) the adjusted basis of the qualified property shall be
reduced by the amount of such deduction before computing the
amount otherwise allowable as a depreciation deduction under
this chapter for such taxable year and any subsequent taxable
year.
``(2) Qualified property.--For purposes of this
subsection--
``(A) In general.--The term `qualified property' means
property--
``(i)(I) to which this section applies which has an
applicable recovery period of 20 years or less or which is
water utility property,
``(II) which is computer software (as defined in section
167(f)(1)(B)) for which a deduction is allowable under
section 167(a) without regard to this subsection,
``(III) which is qualified leasehold improvement property,
or
``(IV) which is eligible for depreciation under section
167(g),
``(ii) the original use of which commences with the
taxpayer after September 10, 2001, and
``(iii) which is--
``(I) acquired by the taxpayer during the 1-year period
beginning on September 11, 2001, and ending on September 10,
2002, and placed in service during such 1-year period, or
``(II) constructed, reconstructed, or erected by or for the
taxpayer on or after the first day of such 1-year period, but
only to the extent of the basis thereof attributable to the
construction, reconstruction, or erection during such 1-year
period.
``(B) Exceptions.--
``(i) Alternative depreciation property.--The term
`qualified property' shall not include any property to which
the alternative depreciation system under subsection (g)
applies, determined--
``(I) without regard to paragraph (7) of subsection (g)
(relating to election to have system apply), and
``(II) after application of section 280F(b) (relating to
listed property with limited business use).
``(ii) Election out.--If a taxpayer makes an election under
this clause with respect to any class of property for any
taxable year, this subsection shall not apply to all property
in such class placed in service during such taxable year.
``(C) Sale-leasebacks.--For purposes of subparagraph
(A)(ii), if property--
``(i) is originally placed in service after September 10,
2001, by a person, and
``(ii) sold and leased back by such person within 3 months
after the date such property was originally placed in
service,
such property shall be treated as originally placed in
service not earlier than the date on which such property is
used under the leaseback referred to in clause (ii).
``(D) Coordination with section 280f.--For purposes of
section 280F--
``(i) Automobiles.--In the case of a passenger automobile
(as defined in section 280F(d)(5)) which is qualified
property, the Secretary shall increase the limitation under
section 280F(a)(1)(A)(i) by $1,600.
``(ii) Listed property.--The deduction allowable under
paragraph (1) shall be taken into account in computing any
recapture amount under section 280F(b)(2).
``(3) Qualified leasehold improvement property.--For
purposes of this subsection--
``(A) In general.--The term `qualified leasehold
improvement property' means any improvement to an interior
portion of a building which is nonresidential real property
if--
``(i) such improvement is made under or pursuant to a lease
(as defined in subsection (h)(7))--
``(I) by the lessee (or any sublessee) of such portion, or
``(II) by the lessor of such portion,
``(ii) such portion is to be occupied exclusively by the
lessee (or any sublessee) of such portion, and
``(iii) such improvement is placed in service more than 3
years after the date the building was first placed in
service.
``(B) Certain improvements not included.--Such term shall
not include any improvement for which the expenditure is
attributable to--
``(i) the enlargement of the building,
``(ii) any elevator or escalator,
``(iii) any structural component benefiting a common area,
and
``(iv) the internal structural framework of the building.
``(C) Definitions and special rules.--For purposes of this
paragraph--
``(i) Binding commitment to lease treated as lease.--A
binding commitment to enter into a lease shall be treated as
a lease, and the parties to such commitment shall be treated
as lessor and lessee, respectively.
``(ii) Related persons.--A lease between related persons
shall not be considered a lease. For purposes of the
preceding sentence, the term `related persons' means--
``(I) members of an affiliated group (as defined in section
1504), and
``(II) persons having a relationship described in
subsection (b) of section 267; except that, for purposes of
this clause, the phrase `80 percent or more' shall be
substituted for the phrase `more than 50 percent' each place
it appears in such subsection.
``(D) Improvements made by lessor.--In the case of an
improvement made by the person who was the lessor of such
improvement when such improvement was placed in service, such
improvement shall be qualified leasehold improvement property
(if at all) only so long as such improvement is held by such
person.''.
(b) Allowance Against Alternative Minimum Tax.--
(1) In general.--Section 56(a)(1)(A) (relating to
depreciation adjustment for alternative minimum tax) is
amended by adding at the end the following new clause:
``(iii) Additional allowance for certain property acquired
after september 10, 2001, and before january 1, 2003.--The
deduction under section 168(k) shall be allowed.''.
(2) Conforming amendment.--Clause (i) of section
56(a)(1)(A) is amended by striking ``clause (ii)'' both
places it appears and inserting ``clauses (ii) and (iii)''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after September 10,
2001, in taxable years ending after such date.
SEC. 112. TEMPORARY INCREASE IN EXPENSING UNDER SECTION 179.
(a) In General.--The table contained in section 179(b)(1)
(relating to dollar limitation) is amended to read as
follows:
``If thThe applicable
amount is:
2001.....................................................$24,000
2002.....................................................$50,000
2003 or thereafter..................................... 25,000.''
(b) Temporary Increase in Amount of Property Triggering
Phaseout of Maximum Benefit.--Paragraph (2) of section 179(b)
of such Code is amended by inserting before the period
``($400,000 in the case of taxable years beginning during
2002)''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2001.
Subtitle C--Extensions of Certain Expiring Provisions
SEC. 121. ALLOWANCE OF NONREFUNDABLE PERSONAL CREDITS AGAINST
REGULAR AND MINIMUM TAX LIABILITY.
(a) In General.--Paragraph (2) of section 26(a) is
amended--
(1) by striking ``rule for 2000 and 2001.--'' and inserting
``rule for 2000, 2001, and 2002.--'', and
(2) by striking ``during 2000 or 2001,'' and inserting
``during 2000, 2001, or 2002,''.
(b) Conforming Amendments.--
(1) Section 904(h) is amended by striking ``during 2000 or
2001'' and inserting ``during 2000, 2001, or 2002''.
(2) The amendments made by sections 201(b), 202(f), and
618(f) of the Economic Growth and Tax Relief Reconciliation
Act of 2001 shall not apply to taxable years beginning during
2002.
(c) Technical Correction.--Section 24(d)(1)(B) is amended
by striking ``amount of credit allowed by this section'' and
inserting ``aggregate amount of credits allowed by this
subpart.''.
(d) Effective Dates.--
(1) The amendments made by subsections (a) and (b) shall
apply to taxable years beginning after December 31, 2001.
(2) The amendment made by subsection (c) shall apply to
taxable years beginning after December 31, 2000.
SEC. 122. CREDIT FOR QUALIFIED ELECTRIC VEHICLES.
(a) In General.--Section 30 is amended--
(1) in subsection (b)(2)--
(A) by striking ``December 31, 2001,'' and inserting
``December 31, 2002,'', and
(B) in subparagraphs (A), (B), and (C), by striking
``2002'', ``2003'', and ``2004'', respectively, and inserting
``2003'', ``2004'', and ``2005'', respectively, and
(2) in subsection (e), by striking ``December 31, 2004''
and inserting ``December 31, 2005''.
(b) Effective Date.--The amendments made by subsection (a)
shall apply to taxable years beginning after December 31,
2001.
SEC. 123. CREDIT FOR ELECTRICITY PRODUCED FROM RENEWABLE
RESOURCES.
(a) In General.--Subparagraphs (A), (B), and (C) of section
45(c)(3) are each amended by striking ``2002'' and inserting
``2003''.
(b) Effective Date.--The amendments made by subsection (a)
shall apply to taxable years beginning after December 31,
2001.
SEC. 124. WORK OPPORTUNITY CREDIT.
(a) In General.--Subparagraph (B) of section 51(c)(4) is
amended by striking ``2001'' and inserting ``2002''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to individuals who begin work for the employer
after December 31, 2001.
SEC. 125. WELFARE-TO-WORK CREDIT.
(a) In General.--Subsection (f) of section 51A is amended
by striking ``2001'' and inserting ``2002''.
[[Page H10870]]
(b) Effective Date.--The amendment made by subsection (a)
shall apply to individuals who begin work for the employer
after December 31, 2001.
SEC. 126. DEDUCTION FOR CLEAN-FUEL VEHICLES AND CERTAIN
REFUELING PROPERTY.
(a) In General.--Section 179A is amended--
(1) in subsection (b)(1)(B)--
(A) by striking ``December 31, 2001,'' and inserting
``December 31, 2002,'', and
(B) in clauses (i), (ii), and (iii), by striking ``2002'',
``2003'', and ``2004'', respectively, and inserting ``2003'',
``2004'', and ``2005'', respectively, and
(2) in subsection (f), by striking ``December 31, 2004''
and inserting ``December 31, 2005''.
(b) Effective Date.--The amendments made by subsection (a)
shall apply to taxable years beginning after December 31,
2001.
SEC. 127. TAXABLE INCOME LIMIT ON PERCENTAGE DEPLETION FOR
OIL AND NATURAL GAS PRODUCED FROM MARGINAL
PROPERTIES.
(a) In General.--Subparagraph (H) of section 613A(c)(6) is
amended by striking ``2002'' and inserting ``2003''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to taxable years beginning after December 31,
2001.
SEC. 128. QUALIFIED ZONE ACADEMY BONDS.
(a) In General.--Paragraph (1) of section 1397E(e) is
amended by striking ``2000, and 2001'' and inserting ``2000,
2001, and 2002''.
(b) Extension of carryover of unused limitation from
1998.--Paragraph (4) of section 1397E(e) is amended by
striking ``3 years for carryforwards from 1998 or 1999'' and
inserting ``4 years for carryforwards from 1998 and 3 years
for carryforwards from 1999''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date of enactment of this Act.
SEC. 129. COVER OVER OF TAX ON DISTILLED SPIRITS.
(a) In General.--Paragraph (1) of section 7652(f) is
amended by striking ``2002'' and inserting ``2003''.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect on the date of the enactment of this Act.
SEC. 130. PARITY IN THE APPLICATION OF CERTAIN LIMITS TO
MENTAL HEALTH BENEFITS.
(a) In General.--Subsection (f) of section 9812 is amended
by striking ``2001'' and inserting ``2002''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to plan years beginning after December 31, 2001.
SEC. 131. 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 (Public Law 105-34) is amended by striking ``January
1, 2002'' and inserting ``January 1, 2003''.
SEC. 132. SUBPART F EXEMPTION FOR ACTIVE FINANCING.
(a) In General.--
(1) Section 953(e)(10) is amended--
(A) by striking ``January 1, 2002'' and inserting ``January
1, 2003'', and
(B) by striking ``December 31, 2001'' and inserting
``December 31, 2002''.
(2) Section 954(h)(9) is amended by striking ``January 1,
2002'' and inserting ``January 1, 2003''.
(b) Life Insurance and Annuity Contracts.--
(1) In general.--Subparagraph (B) of section 954(i)(4) is
amended to read as follows:
``(B) Life insurance and annuity contracts.--
``(i) In general.--Except as provided in clause (ii), the
amount of the reserve of a qualifying insurance company or
qualifying insurance company branch for any life insurance or
annuity contract shall be equal to the greater of--
``(I) the net surrender value of such contract (as defined
in section 807(e)(1)(A)), or
``(II) the reserve determined under paragraph (5).
``(ii) Ruling request.--The amount of the reserve under
clause (i) shall be the foreign statement reserve for the
contract (less any catastrophe, deficiency, equalization, or
similar reserves), if, pursuant to a ruling request submitted
by the taxpayer, the Secretary determines that the factors
taken into account in determining the foreign statement
reserve provide an appropriate means of measuring income.''
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2001.
SEC. 133. 1-YEAR EXTENSION OF SUPPLEMENTAL GRANT PROGRAM
UNDER THE TANF PROGRAM.
Paragraph (3) of section 403(a) of the Social Security Act
(42 U.S.C. 603(a)(3)) is amended by striking ``and 2001''
each place it appears and inserting ``2001, and 2002''.
SEC. 134. 1-YEAR EXTENSION OF CONTINGENCY FUND UNDER THE TANF
PROGRAM.
Section 403(b) of the Social Security Act (42 U.S.C.
603(b)) is amended--
(1) in paragraph (2), by striking ``and 2001'' and
inserting ``2001, and 2002''; and
(2) in paragraph (3)(C)(ii), by striking ``2001'' and
inserting ``2002''.
SEC. 135. INCENTIVES FOR INDIAN EMPLOYMENT AND PROPERTY ON
INDIAN RESERVATIONS.
(a) Employment.--Subsection (f) of section 45A is amended
by striking ``December 31, 2003'' and inserting ``December
31, 2004''.
(b) Property.--Paragraph (8) section 168(j) is amended by
striking ``December 31, 2003'' and inserting ``December 31,
2004''.
Subtitle D--Other Provisions
SEC. 141. ALTERNATIVE MINIMUM TAX RELIEF WITH RESPECT TO
INCENTIVE STOCK OPTIONS EXERCISED DURING 2000
OR 2001.
In the case of an incentive stock option (as defined in
section 422 of the Internal Revenue Code of 1986) exercised
during calendar year 2000 or 2001, the amount taken into
account under section 56(b)(3) of such Code by reason of such
exercise shall not exceed the amount that would have been
taken into account if, on the date of such exercise, the fair
market value of the stock acquired pursuant to such option
had been--
(1) its fair market value as of--
(A) April 15, 2001, in the case of options exercised during
2000, and
(B) December 31, 2001, in the case of options exercised
during 2001, or
(2) if such stock is sold or exchanged on or before the
applicable date under paragraph (1), the amount realized on
such sale or exchange.
SEC. 142. CARRYBACK OF CERTAIN NET OPERATING LOSSES ALLOWED
FOR 5 YEARS.
(a) In General.--Paragraph (1) of section 172(b) (relating
to years to which loss may be carried) is amended by adding
at the end the following new subparagraph:
``(H) In the case of a taxpayer which has a net operating
loss for any taxable year ending in 2001, subparagraph (A)(i)
shall be applied by substituting `5' for `2' and subparagraph
(F) shall not apply.''.
(b) Election To Disregard 5-Year Carryback.--Section 172
(relating to net operating loss deduction) is amended by
redesignating subsection (j) as subsection (k) and by
inserting after subsection (i) the following new subsection:
``(j) Election To Disregard 5-Year Carryback for Certain
Net Operating Losses.--Any taxpayer entitled to a 5-year
carryback under subsection (b)(1)(H) from any loss year may
elect to have the carryback period with respect to such loss
year determined without regard to subsection (b)(1)(H). Such
election shall be made in such manner as may be prescribed by
the Secretary and shall be made by the due date (including
extensions of time) for filing the taxpayer's return for the
taxable year of the net operating loss. Such election, once
made for any taxable year, shall be irrevocable for such
taxable year.''.
(c) Temporary Suspension of 90 Percent Limit on Certain NOL
Carrybacks.--Subparagraph (A) of section 56(d)(1) (relating
to general rule defining alternative tax net operating loss
deduction) is amended to read as follows:
``(A) the amount of such deduction shall not exceed the sum
of--
``(i) the lesser of--
``(I) the amount of such deduction attributable to net
operating losses (other than the deduction attributable to
carrybacks described in clause (ii)(I)), or
``(II) 90 percent of alternative minimum taxable income
determined without regard to such deduction, plus
``(ii) the lesser of--
``(I) the amount of such deduction attributable to
carrybacks of net operating losses for taxable years ending
in 2001, or
``(II) alternative minimum taxable income determined
without regard to such deduction reduced by the amount
determined under clause (i), and''.
(d) Effective Date.--The amendments made by this section
shall apply to net operating losses for taxable years ending
in 2001.
SEC. 143. TEMPORARY WAIVER OF 90 PERCENT AMT LIMITATIONS.
Subparagraph (A) of section 56(b)(1) of the Internal
Revenue Code of 1986 and paragraph (2) of section 59(a) of
such Code shall not apply in determining alternative minimum
tax liability for taxable years beginning in 2002.
SEC. 144. EXPANSION OF INCENTIVES FOR PUBLIC SCHOOLS.
(a) In General.--Chapter 1 is amended by adding at the end
the following new subchapter:
``Subchapter Y--Public School Modernization Provisions
``Sec. 1400K. Credit to holders of qualified public school
modernization bonds.
``Sec. 1400L. Qualified school construction bonds.
``Sec. 1400M. Qualified zone academy bonds.
``SEC. 1400K. CREDIT TO HOLDERS OF QUALIFIED PUBLIC SCHOOL
MODERNIZATION BONDS.
``(a) Allowance of Credit.--In the case of a taxpayer who
holds a qualified public school modernization bond on a
credit allowance date of such bond which occurs during the
taxable year, there shall be allowed as a credit against the
tax imposed by this chapter for such taxable year an amount
equal to the sum of the credits determined under subsection
(b) with respect to credit allowance dates during such year
on which the taxpayer holds such bond.
``(b) Amount of Credit.--
``(1) In general.--The amount of the credit determined
under this subsection with respect to any credit allowance
date for a qualified public school modernization bond is 25
percent of the annual credit determined with respect to such
bond.
``(2) Annual credit.--The annual credit determined with
respect to any qualified public
[[Page H10871]]
school modernization bond is the product of--
``(A) the applicable credit rate, multiplied by
``(B) the outstanding face amount of the bond.
``(3) Applicable credit rate.--For purposes of paragraph
(1), the applicable credit rate with respect to an issue is
the rate equal to an average market yield (as of the day
before the date of issuance of the issue) on outstanding
long-term corporate debt obligations (determined under
regulations prescribed by the Secretary).
``(4) Special rule for issuance and redemption.--In the
case of a bond which is issued during the 3-month period
ending on a credit allowance date, the amount of the credit
determined under this subsection with respect to such credit
allowance date shall be a ratable portion of the credit
otherwise determined based on the portion of the 3-month
period during which the bond is outstanding. A similar rule
shall apply when the bond is redeemed.
``(c) Limitation Based on Amount of Tax.--
``(1) In general.--The credit allowed under subsection (a)
for any taxable year shall not exceed the excess of--
``(A) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(B) the sum of the credits allowable under part IV of
subchapter A (other than subpart C thereof, relating to
refundable credits).
``(2) Carryover of unused credit.--If the credit allowable
under subsection (a) exceeds the limitation imposed by
paragraph (1) for such taxable year, such excess shall be
carried to the succeeding taxable year and added to the
credit allowable under subsection (a) for such taxable year.
``(d) Qualified Public School Modernization Bond; Credit
Allowance Date.--For purposes of this section--
``(1) Qualified public school modernization bond.--The term
`qualified public school modernization bond' means--
``(A) a qualified zone academy bond, and
``(B) a qualified school construction bond.
``(2) Credit allowance date.--The term `credit allowance
date' means--
``(A) March 15,
``(B) June 15,
``(C) September 15, and
``(D) December 15.
Such term includes the last day on which the bond is
outstanding.
``(e) Other Definitions.--For purposes of this subchapter--
``(1) Local educational agency.--The term `local
educational agency' has the meaning given to such term by
section 14101 of the Elementary and Secondary Education Act
of 1965. Such term includes the local educational agency that
serves the District of Columbia but does not include any
other State agency.
``(2) Bond.--The term `bond' includes any obligation.
``(3) State.--The term `State' includes the District of
Columbia and any possession of the United States.
``(4) Public school facility.--The term `public school
facility' shall not include--
``(A) any stadium or other facility primarily used for
athletic contests or exhibitions or other events for which
admission is charged to the general public, or
``(B) any facility which is not owned by a State or local
government or any agency or instrumentality of a State or
local government.
``(f) Credit Included in Gross Income.--Gross income
includes the amount of the credit allowed to the taxpayer
under this section (determined without regard to subsection
(c)) and the amount so included shall be treated as interest
income.
``(g) Recapture of Portion of Credit Where Cessation of
Compliance.--
``(1) In general.--If any bond which when issued purported
to be a qualified public school modernization bond ceases to
be a qualified public school modernization bond, the issuer
shall pay to the United States (at the time required by the
Secretary) an amount equal to the sum of--
``(A) the aggregate of the credits allowable under this
section with respect to such bond (determined without regard
to subsection (c)) for taxable years ending during the
calendar year in which such cessation occurs and the 2
preceding calendar years, and
``(B) interest at the underpayment rate under section 6621
on the amount determined under subparagraph (A) for each
calendar year for the period beginning on the first day of
such calendar year.
``(2) Failure to pay.--If the issuer fails to timely pay
the amount required by paragraph (1) with respect to such
bond, the tax imposed by this chapter on each holder of any
such bond which is part of such issue shall be increased (for
the taxable year of the holder in which such cessation
occurs) by the aggregate decrease in the credits allowed
under this section to such holder for taxable years beginning
in such 3 calendar years which would have resulted solely
from denying any credit under this section with respect to
such issue for such taxable years.
``(3) Special rules.--
``(A) Tax benefit rule.--The tax for the taxable year shall
be increased under paragraph (2) only with respect to credits
allowed by reason of this section which were used to reduce
tax liability. In the case of credits not so used to reduce
tax liability, the carryforwards and carrybacks under section
39 shall be appropriately adjusted.
``(B) No credits against tax.--Any increase in tax under
paragraph (2) shall not be treated as a tax imposed by this
chapter for purposes of determining --
``(i) the amount of any credit allowable under this part,
or
``(ii) the amount of the tax imposed by section 55.
``(h) Bonds Held by Regulated Investment Companies.--If any
qualified public school modernization bond is held by a
regulated investment company, the credit determined under
subsection (a) shall be allowed to shareholders of such
company under procedures prescribed by the Secretary.
``(i) Credits May Be Stripped.--Under regulations
prescribed by the Secretary--
``(1) In general.--There may be a separation (including at
issuance) of the ownership of a qualified public school
modernization bond and the entitlement to the credit under
this section with respect to such bond. In case of any such
separation, the credit under this section shall be allowed to
the person who on the credit allowance date holds the
instrument evidencing the entitlement to the credit and not
to the holder of the bond.
``(2) Certain rules to apply.--In the case of a separation
described in paragraph (1), the rules of section 1286 shall
apply to the qualified public school modernization bond as if
it were a stripped bond and to the credit under this section
as if it were a stripped coupon.
``(j) Treatment for Estimated Tax Purposes.--Solely for
purposes of sections 6654 and 6655, the credit allowed by
this section to a taxpayer by reason of holding a qualified
public school modernization bonds on a credit allowance date
shall be treated as if it were a payment of estimated tax
made by the taxpayer on such date.
``(k) Credit May Be Transferred.--Nothing in any law or
rule of law shall be construed to limit the transferability
of the credit allowed by this section through sale and
repurchase agreements.
``(k) Reporting.--Issuers of qualified public school
modernization bonds shall submit reports similar to the
reports required under section 149(e).
``(l) Penalty on Contractors Failing To Pay Prevailing
Wage.--
``(1) In general.--If the Secretary of Labor certifies to
the Secretary that any contractor on any project funded by
any qualified public school modernization bond has failed,
during any portion of such contractor's taxable year, to pay
prevailing wages as would be required under section 439 of
the General Education Provisions Act if such funding were an
applicable program under such section, the tax imposed by
chapter 1 on such contractor for such taxable year shall be
increased by 100 percent of the amount involved in such
failure. The preceding sentence shall not apply to the extent
the Secretary of Labor determines that such failure is due to
reasonable cause and not willful neglect.
``(2) Amount involved.--For purposes of paragraph (1), the
amount involved with respect to any failure is the excess of
the amount of wages such contractor would be so required to
pay under such section over the amount of wages paid.
``(3) No credits against tax.--The tax imposed by this
section shall not be treated as a tax imposed by this chapter
for purposes of determining--
``(A) the amount of any credit allowable under this
chapter, or
``(B) the amount of the minimum tax imposed by section 55.
``(m) Termination.--This section shall not apply to any
bond issued after September 30, 2006.
``SEC. 1400L. QUALIFIED SCHOOL CONSTRUCTION BONDS.
``(a) Qualified School Construction Bond.--For purposes of
this subchapter, the term `qualified school construction
bond' means any bond issued as part of an issue if--
``(1) 95 percent or more of the proceeds of such issue are
to be used for the construction, rehabilitation, or repair of
a public school facility or for the acquisition of land on
which such a facility is to be constructed with part of the
proceeds of such issue,
``(2) the bond is issued by a State or local government
within the jurisdiction of which such school is located,
``(3) the issuer designates such bond for purposes of this
section, and
``(4) the term of each bond which is part of such issue
does not exceed 15 years.
``(b) Limitation on Amount of Bonds Designated.--The
maximum aggregate face amount of bonds issued during any
calendar year which may be designated under subsection (a) by
any issuer shall not exceed the sum of--
``(1) the limitation amount allocated under subsection (d)
for such calendar year to such issuer, and
``(2) if such issuer is a large local educational agency
(as defined in subsection (e)(4)) or is issuing on behalf of
such an agency, the limitation amount allocated under
subsection (e) for such calendar year to such agency.
``(c) National Limitation on Amount of Bonds Designated.--
There is a national qualified school construction bond
limitation for each calendar year. Such limitation is--
``(1) $11,000,000,000 for 2002, and
``(2) except as provided in subsection (f), zero after
2002.
``(d) 60 Percent of Limitation Allocated Among States.--
[[Page H10872]]
``(1) In general.--60 percent of the limitation applicable
under subsection (c) for any calendar year shall be allocated
by the Secretary among the States in proportion to the
respective numbers of children in each State who have
attained age 5 but not age 18 for the most recent fiscal year
ending before such calendar year. The limitation amount
allocated to a State under the preceding sentence shall be
allocated by the State to issuers within such State.
``(2) Minimum allocations to states.--
``(A) In general.--The Secretary shall adjust the
allocations under this subsection for any calendar year for
each State to the extent necessary to ensure that the sum
of--
``(i) the amount allocated to such State under this
subsection for such year, and
``(ii) the aggregate amounts allocated under subsection (e)
to large local educational agencies in such State for such
year,
is not less than an amount equal to such State's minimum
percentage of the amount to be allocated under paragraph (1)
for the calendar year.
``(B) Minimum percentage.--A State's minimum percentage for
any calendar year is the minimum percentage described in
section 1124(d) of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 6334(d)) for such State for the most
recent fiscal year ending before such calendar year.
``(3) Allocations to certain possessions.--The amount to be
allocated under paragraph (1) to any possession of the United
States other than Puerto Rico shall be the amount which would
have been allocated if all allocations under paragraph (1)
were made on the basis of respective populations of
individuals below the poverty line (as defined by the Office
of Management and Budget). In making other allocations, the
amount to be allocated under paragraph (1) shall be reduced
by the aggregate amount allocated under this paragraph to
possessions of the United States.
``(4) Allocations for indian schools.--In addition to the
amounts otherwise allocated under this subsection,
$200,000,000 for calendar year 2002, and $200,000,000 for
calendar year 2003, shall be allocated by the Secretary of
the Interior for purposes of the construction,
rehabilitation, and repair of schools funded by the Bureau of
Indian Affairs. In the case of amounts allocated under the
preceding sentence, Indian tribal governments (as defined in
section 7871) shall be treated as qualified issuers for
purposes of this subchapter.
``(e) 40 Percent of Limitation Allocated Among Largest
School Districts.--
``(1) In general.--40 percent of the limitation applicable
under subsection (c) for any calendar year shall be allocated
under paragraph (2) by the Secretary among local educational
agencies which are large local educational agencies for such
year.
``(2) Allocation formula.--The amount to be allocated under
paragraph (1) for any calendar year shall be allocated among
large local educational agencies in proportion to the
respective amounts each such agency received for Basic Grants
under subpart 2 of part A of title I of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6331 et seq.) for
the most recent fiscal year ending before such calendar year.
``(3) Allocation of unused limitation to state.--The amount
allocated under this subsection to a large local educational
agency for any calendar year may be reallocated by such
agency to the State in which such agency is located for such
calendar year. Any amount reallocated to a State under the
preceding sentence may be allocated as provided in subsection
(d)(1).
``(4) Large local educational agency.--For purposes of this
section, the term `large local educational agency' means,
with respect to a calendar year, any local educational agency
if such agency is--
``(A) among the 100 local educational agencies with the
largest numbers of children aged 5 through 17 from families
living below the poverty level, as determined by the
Secretary using the most recent data available from the
Department of Commerce that are satisfactory to the
Secretary, or
``(B) 1 of not more than 25 local educational agencies
(other than those described in subparagraph (A)) that the
Secretary of Education determines (based on the most recent
data available satisfactory to the Secretary) are in
particular need of assistance, based on a low level of
resources for school construction, a high level of enrollment
growth, or such other factors as the Secretary deems
appropriate.
``(f) Carryover of Unused Limitation.--If for any calendar
year--
``(1) the amount allocated under subsection (d) to any
State, exceeds
``(2) the amount of bonds issued during such year which are
designated under subsection (a) pursuant to such allocation,
the limitation amount under such subsection for such State
for the following calendar year shall be increased by the
amount of such excess. A similar rule shall apply to the
amounts allocated under subsection (d)(4) or (e).
``(g) Special Rules Relating to Arbitrage.--
``(1) In general.--A bond shall not be treated as failing
to meet the requirement of subsection (a)(1) solely by reason
of the fact that the proceeds of the issue of which such bond
is a part are invested for a temporary period (but not more
than 36 months) until such proceeds are needed for the
purpose for which such issue was issued.
``(2) Binding commitment requirement.--Paragraph (1) shall
apply to an issue only if, as of the date of issuance, there
is a reasonable expectation that--
``(A) at least 10 percent of the proceeds of the issue will
be spent within the 6-month period beginning on such date for
the purpose for which such issue was issued, and
``(B) the remaining proceeds of the issue will be spent
with due diligence for such purpose.
``(3) Earnings on proceeds.--Any earnings on proceeds
during the temporary period shall be treated as proceeds of
the issue for purposes of applying subsection (a)(1) and
paragraph (1) of this subsection.
``SEC. 1400M. QUALIFIED ZONE ACADEMY BONDS.
``(a) Qualified Zone Academy Bond.--For purposes of this
subchapter--
``(1) In general.--The term `qualified zone academy bond'
means any bond issued as part of an issue if--
``(A) 95 percent or more of the proceeds of such issue are
to be used for a qualified purpose with respect to a
qualified zone academy established by a local educational
agency,
``(B) the bond is issued by a State or local government
within the jurisdiction of which such academy is located,
``(C) the issuer--
``(i) designates such bond for purposes of this section,
``(ii) certifies that it has written assurances that the
private business contribution requirement of paragraph (2)
will be met with respect to such academy, and
``(iii) certifies that it has the written approval of the
local educational agency for such bond issuance, and
``(D) the term of each bond which is part of such issue
does not exceed 15 years.
Rules similar to the rules of section 1400L(g) shall apply
for purposes of paragraph (1).
``(2) Private business contribution requirement.--
``(A) In general.--For purposes of paragraph (1), the
private business contribution requirement of this paragraph
is met with respect to any issue if the local educational
agency that established the qualified zone academy has
written commitments from private entities to make qualified
contributions having a present value (as of the date of
issuance of the issue) of not less than 10 percent of the
proceeds of the issue.
``(B) Qualified contributions.--For purposes of
subparagraph (A), the term `qualified contribution' means any
contribution (of a type and quality acceptable to the local
educational agency) of--
``(i) equipment for use in the qualified zone academy
(including state-of-the-art technology and vocational
equipment),
``(ii) technical assistance in developing curriculum or in
training teachers in order to promote appropriate market
driven technology in the classroom,
``(iii) services of employees as volunteer mentors,
``(iv) internships, field trips, or other educational
opportunities outside the academy for students, or
``(v) any other property or service specified by the local
educational agency.
``(3) Qualified zone academy.--The term `qualified zone
academy' means any public school (or academic program within
a public school) which is established by and operated under
the supervision of a local educational agency to provide
education or training below the postsecondary level if--
``(A) such public school or program (as the case may be) is
designed in cooperation with business to enhance the academic
curriculum, increase graduation and employment rates, and
better prepare students for the rigors of college and the
increasingly complex workforce,
``(B) students in such public school or program (as the
case may be) will be subject to the same academic standards
and assessments as other students educated by the local
educational agency,
``(C) the comprehensive education plan of such public
school or program is approved by the local educational
agency, and
``(D)(i) such public school is located in an empowerment
zone or enterprise community (including any such zone or
community designated after the date of the enactment of this
section), or
``(ii) there is a reasonable expectation (as of the date of
issuance of the bonds) that at least 35 percent of the
students attending such school or participating in such
program (as the case may be) will be eligible for free or
reduced-cost lunches under the school lunch program
established under the National School Lunch Act.
``(4) Qualified purpose.--The term `qualified purpose'
means, with respect to any qualified zone academy--
``(A) constructing, rehabilitating, or repairing the public
school facility in which the academy is established,
``(B) acquiring the land on which such facility is to be
constructed with part of the proceeds of such issue,
``(C) providing equipment for use at such academy,
``(D) developing course materials for education to be
provided at such academy, and
``(E) training teachers and other school personnel in such
academy.
``(b) Limitations on Amount of Bonds Designated.--
``(1) In general.--There is a national zone academy bond
limitation for each calendar year. Such limitation is--
[[Page H10873]]
``(A) $400,000,000 for 1998,
``(B) $400,000,000 for 1999,
``(C) $400,000,000 for 2000,
``(D) $400,000,000 for 2001,
``(E) $1,400,000,000 for 2002, and
``(F) except as provided in paragraph (3), zero after 2002.
``(2) Allocation of limitation.--
``(A) Allocation among states.--
``(i) 1998, 1999, 2000, and 2001 limitations.--The national
zone academy bond limitations for calendar years 1998, 1999,
2000, and 2001 shall be allocated by the Secretary among the
States on the basis of their respective populations of
individuals below the poverty line (as defined by the Office
of Management and Budget).
``(ii) Limitation after 2001.--The national zone academy
bond limitation for any calendar year after 2001 shall be
allocated by the Secretary among the States in proportion to
the respective amounts each such State received for Basic
Grants under subpart 2 of part A of title I of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 6331 et seq.)
for the most recent fiscal year ending before such calendar
year.
``(B) Allocation to local educational agencies.--The
limitation amount allocated to a State under subparagraph (A)
shall be allocated by the State to qualified zone academies
within such State.
``(C) Designation subject to limitation amount.--The
maximum aggregate face amount of bonds issued during any
calendar year which may be designated under subsection (a)
with respect to any qualified zone academy shall not exceed
the limitation amount allocated to such academy under
subparagraph (B) for such calendar year.
``(3) Carryover of unused limitation.--If for any calendar
year--
``(A) the limitation amount under this subsection for any
State, exceeds
``(B) the amount of bonds issued during such year which are
designated under subsection (a) (or the corresponding
provisions of prior law) with respect to qualified zone
academies within such State,
the limitation amount under this subsection for such State
for the following calendar year shall be increased by the
amount of such excess.''
(b) Reporting.--Subsection (d) of section 6049 (relating to
returns regarding payments of interest) is amended by adding
at the end the following new paragraph:
``(8) Reporting of credit on qualified public school
modernization bonds.--
``(A) In general.--For purposes of subsection (a), the term
`interest' includes amounts includible in gross income under
section 1400K(f) and such amounts shall be treated as paid on
the credit allowance date (as defined in section
1400K(d)(2)).
``(B) Reporting to corporations, etc.--Except as otherwise
provided in regulations, in the case of any interest
described in subparagraph (A) of this paragraph, subsection
(b)(4) of this section shall be applied without regard to
subparagraphs (A), (H), (I), (J), (K), and (L)(i).
``(C) Regulatory authority.--The Secretary may prescribe
such regulations as are necessary or appropriate to carry out
the purposes of this paragraph, including regulations which
require more frequent or more detailed reporting.''
(c) Conforming Amendments.--
(1) Subchapter U of chapter 1 is amended by striking part
IV, by redesignating part V as part IV, and by redesignating
section 1397F as section 1397E.
(2) The table of subchapters for chapter 1 is amended by
adding at the end the following new item:
``Subchapter Y. Public school modernization provisions.''
(3) The table of parts of subchapter U of chapter 1 is
amended by striking the last 2 items and inserting the
following item:
``Part IV. Regulations.''
(e) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to obligations issued after December 31, 2001.
(2) Repeal of restriction on zone academy bond holders.--In
the case of bonds to which section 1397E of the Internal
Revenue Code of 1986 (as in effect before the date of the
enactment of this Act) applies, the limitation of such
section to eligible taxpayers (as defined in subsection
(d)(6) of such section) shall not apply after the date of the
enactment of this Act.
TITLE II--WORKER RELIEF
Subtitle A--Temporary Unemployment Compensation
SEC. 201. SHORT TITLE.
This subtitle may be cited as the ``Temporary Unemployment
Compensation Act of 2001''.
SEC. 202. FEDERAL-STATE AGREEMENTS.
(a) In General.--Any State which desires to do so may enter
into and participate in an agreement under this subtitle with
the Secretary of Labor (hereinafter in this subtitle referred
to as the ``Secretary''). Any State which is a party to an
agreement under this subtitle may, upon providing 30 days'
written notice to the Secretary, terminate such agreement.
(b) Provisions of Agreement.--
(1) In general.--Any agreement under subsection (a) shall
provide that the State agency of the State will make--
(A) payments of regular compensation to individuals in
amounts and to the extent that they would be determined if
the State law were applied with the modifications described
in paragraph (2), and
(B) payments of temporary supplemental unemployment
compensation to individuals who--
(i) have exhausted all rights to regular compensation under
the State law,
(ii) do not, with respect to a week, have any rights to
compensation (excluding extended compensation) under the
State law of any other State (whether one that has entered
into an agreement under this subtitle or otherwise) nor
compensation under any other Federal law (other than under
the Federal-State Extended Unemployment Compensation Act of
1970), and are not paid or entitled to be paid any additional
compensation under any State or Federal law, and
(iii) are not receiving compensation with respect to such
week under the unemployment compensation law of Canada.
(2) Modifications described.--The modifications described
in this paragraph are as follows:
(A) An individual shall be eligible for regular
compensation if the individual would be so eligible,
determined by applying--
(i) the base period that would otherwise apply under the
State law if this subtitle had not been enacted, or
(ii) a base period ending at the close of the calendar
quarter most recently completed before the date of the
individual's application for benefits,
whichever results in the greater amount.
(B) An individual shall not be denied regular compensation
under the State law's provisions relating to availability for
work, active search for work, or refusal to accept work,
solely by virtue of the fact that such individual is seeking,
or available for, only part-time (and not full-time) work.
(C)(i) Subject to clause (ii), the amount of regular
compensation (including dependents' allowances) payable for
any week shall be equal to the amount determined under the
State law (before the application of this subparagraph), plus
an additional--
(I) 25 percent, or
(II) $65,
whichever is greater.
(ii) In no event may the total amount determined under
clause (i) with respect to any individual exceed the average
weekly insured wages of that individual in that calendar
quarter of the base period in which such individual's insured
wages were the highest (or one such quarter if his wages were
the same for more than one such quarter).
(c) Nonreduction Rule.--Under the agreement, subsection
(b)(2)(C) shall not apply (or shall cease to apply) with
respect to a State upon a determination by the Secretary that
the method governing the computation of regular compensation
under the State law of that State has been modified in a way
such that--
(1) the average weekly amount of regular compensation which
will be payable during the period of the agreement
(determined disregarding the modifications described in
subsection (b)(2)) will be less than
(2) the average weekly amount of regular compensation which
would otherwise have been payable during such period under
the State law, as in effect on September 11, 2001.
(d) Coordination Rules.--
(1) Regular compensation payable under a federal law.--The
modifications described in subsection (b)(2) shall also apply
in determining the amount of benefits payable under any
Federal law to the extent that those benefits are determined
by reference to regular compensation payable under the State
law of the State involved.
(2) TSUC to serve as second-tier benefits.--Notwithstanding
any other provision of law, extended benefits shall not be
payable to any individual for any week for which temporary
supplemental unemployment compensation is payable to such
individual.
(e) Exhaustion of Benefits.--For purposes of subsection
(b)(1)(B)(i), an individual shall be considered to have
exhausted such individual's rights to regular compensation
under a State law when--
(1) no payments of regular compensation can be made under
such law because such individual has received all regular
compensation available to such individual based on employment
or wages during such individual's base period, or
(2) such individual's rights to such compensation have been
terminated by reason of the expiration of the benefit year
with respect to which such rights existed.
(f) Weekly Benefit Amount, Terms and Conditions, etc.
Relating to TSUC.--For purposes of any agreement under this
subtitle--
(1) the amount of temporary supplemental unemployment
compensation which shall be payable to an individual for any
week of total unemployment shall be equal to the amount of
regular compensation (including dependents' allowances)
payable to such individual under the State law for a week for
total unemployment during such individual's benefit year,
(2) the terms and conditions of the State law which apply
to claims for regular compensation and to the payment thereof
shall apply to claims for temporary supplemental unemployment
compensation and the payment thereof, except where
inconsistent with the provisions of this subtitle or with the
regulations or operating instructions of the Secretary
promulgated to carry out this subtitle, and
(3) the maximum amount of temporary supplemental
unemployment compensation
[[Page H10874]]
payable to any individual for whom a temporary supplemental
unemployment compensation account is established under
section 203 shall not exceed the amount established in such
account for such individual.
SEC. 203. TEMPORARY SUPPLEMENTAL UNEMPLOYMENT COMPENSATION
ACCOUNT.
(a) In General.--Any agreement under this subtitle shall
provide that the State will establish, for each eligible
individual who files an application for temporary
supplemental unemployment compensation, a temporary
supplemental unemployment compensation account.
(b) Amount in Account.--
(1) In general.--The amount established in an account under
subsection (a) shall be equal to the product obtained by
multiplying an individual's weekly benefit amount by the
applicable factor under paragraph (3).
(2) Weekly benefit amount.--For purposes of this
subsection, an individual's weekly benefit amount for any
week is the amount of regular compensation (including
dependents' allowances) under the State law payable to such
individual for a week of total unemployment in such
individual's benefit year.
(3) Applicable factor.--
(A) General rule.--The applicable factor under this
paragraph is 13, unless the individual's benefit year begins
or ends during a period of high unemployment within such
individual's State, in which case the applicable factor is
26.
(B) Period of high unemployment.--For purposes of this
paragraph, a period of high unemployment within a State shall
begin and end, if at all, in a way (to be set forth in the
State's agreement under this subtitle) similar to the way in
which an extended benefit period would under section 203 of
the Federal-State Extended Unemployment Compensation Act of
1970, subject to the following:
(i) To determine if there is a State ``on'' or ``off''
indicator, apply section 203(f) of such Act, but--
(I) substitute ``5 percent'' for ``6.5 percent'' in
paragraph (1)(A)(i) thereof, and
(II) disregard paragraph (1)(A)(ii) thereof and the last
sentence of paragraph (1) thereof.
(ii) To determine the beginning and ending dates of a
period of high unemployment within a State, apply section
203(a) and (b) of such Act, except that--
(I) in applying such section 203(a), deem paragraphs (1)
and (2) thereof to be amended by striking ``the third week
after'', and
(II) in applying such section 203(b), deem paragraph (1)(A)
thereof amended by striking ``thirteen'' and inserting
``twenty-six'' and paragraph (1)(B) thereof amended by
striking ``fourteenth'' and inserting ``twenty-seventh''.
(4) Rule of construction.--For purposes of any computation
under paragraph (1) (and any determination of amount under
section 202(f)(1)), the modification described in section
202(b)(2)(C) (relating to increased benefits) shall be deemed
to have been in effect with respect to the entirety of the
benefit year involved.
(c) Eligibility Period.--An individual whose applicable
factor under subsection (b)(3) is 26 shall be eligible for
temporary supplemental unemployment compensation for each
week of total unemployment in his benefit year which begins
in the State's period of high unemployment and, if his
benefit year ends within such period, any such weeks
thereafter which begin in such period of high unemployment,
not to exceed a total of 26 weeks.
SEC. 204. PAYMENTS TO STATES HAVING AGREEMENTS UNDER THIS
SUBTITLE.
(a) General Rule.--There shall be paid to each State which
has entered into an agreement under this subtitle an amount
equal to--
(1) 100 percent of any regular compensation made payable to
individuals by such State by virtue of the modifications
which are described in section 202(b)(2) and deemed to be in
effect with respect to such State pursuant to section
202(b)(1)(A),
(2) 100 percent of any regular compensation--
(A) which is paid to individuals by such State by reason of
the fact that its State law contains provisions comparable to
the modifications described in section 202(b)(2)(A)-(B), but
only
(B) to the extent that those amounts would, if such amounts
were instead payable by virtue of the State law's being
deemed to be so modified pursuant to section 202(b)(1)(A),
have been reimbursable under paragraph (1), and
(3) 100 percent of the temporary supplemental unemployment
compensation paid to individuals by the State pursuant to
such agreement.
(b) Determination of Amount.--Sums under subsection (a)
payable to any State by reason of such State having an
agreement under this subtitle shall be payable, either in
advance or by way of reimbursement (as may be determined by
the Secretary), in such amounts as the Secretary estimates
the State will be entitled to receive under this subtitle for
each calendar month, reduced or increased, as the case may
be, by any amount by which the Secretary finds that the
Secretary's estimates for any prior calendar month were
greater or less than the amounts which should have been paid
to the State. Such estimates may be made on the basis of such
statistical, sampling, or other method as may be agreed upon
by the Secretary and the State agency of the State involved.
(c) Administrative Expenses, etc.--There is hereby
appropriated out of the employment security administration
account of the Unemployment Trust Fund (as established by
section 901(a) of the Social Security Act) $500,000,000 to
reimburse States for the costs of the administration of
agreements under this subtitle (including any improvements in
technology in connection therewith) and to provide
reemployment services to unemployment compensation claimants
in States having agreements under this subtitle. Each State's
share of the amount appropriated by the preceding sentence
shall be determined by the Secretary according to the factors
described in section 302(a) of the Social Security Act and
certified by the Secretary to the Secretary of the Treasury.
SEC. 205. FINANCING PROVISIONS.
(a) In General.--Funds in the extended unemployment
compensation account (as established by section 905(a) of the
Social Security Act), and the Federal unemployment account
(as established by section 904(g) of the Social Security
Act), of the Unemployment Trust Fund shall be used, in
accordance with subsection (b), for the making of payments
(described in section 204(a)) to States having agreements
entered into under this subtitle.
(b) Certification.--The Secretary shall from time to time
certify to the Secretary of the Treasury for payment to each
State the sums described in section 204(a) which are payable
to such State under this subtitle. The Secretary of the
Treasury, prior to audit or settlement by the General
Accounting Office, shall make payments to the State in
accordance with such certification by transfers from the
extended unemployment compensation account (or, to the extent
that there are insufficient funds in that account, from the
Federal unemployment account) to the account of such State in
the Unemployment Trust Fund.
SEC. 206. FRAUD AND OVERPAYMENTS.
(a) In General.--If an individual knowingly has made, or
caused to be made by another, a false statement or
representation of a material fact, or knowingly has failed,
or caused another to fail, to disclose a material fact, and
as a result of such false statement or representation or of
such nondisclosure such individual has received any regular
compensation or temporary supplemental unemployment
compensation under this subtitle to which he was not
entitled, such individual--
(1) shall be ineligible for any further benefits under this
subtitle in accordance with the provisions of the applicable
State unemployment compensation law relating to fraud in
connection with a claim for unemployment compensation, and
(2) shall be subject to prosecution under section 1001 of
title 18, United States Code.
(b) Repayment.--In the case of individuals who have
received any regular compensation or temporary supplemental
unemployment compensation under this subtitle to which they
were not entitled, the State shall require such individuals
to repay those benefits to the State agency, except that the
State agency may waive such repayment if it determines that--
(1) the payment of such benefits was without fault on the
part of any such individual, and
(2) such repayment would be contrary to equity and good
conscience.
(c) Recovery by State Agency.--
(1) In general.--The State agency may recover the amount to
be repaid, or any part thereof, by deductions from any
regular compensation or temporary supplemental unemployment
compensation payable to such individual under this subtitle
or from any unemployment compensation payable to such
individual under any Federal unemployment compensation law
administered by the State agency or under any other Federal
law administered by the State agency which provides for the
payment of any assistance or allowance with respect to any
week of unemployment, during the 3-year period after the date
such individuals received the payment of the regular
compensation or temporary supplemental unemployment
compensation to which they were not entitled, except that no
single deduction may exceed 50 percent of the weekly benefit
amount from which such deduction is made.
(2) Opportunity for hearing.--No repayment shall be
required, and no deduction shall be made, until a
determination has been made, notice thereof and an
opportunity for a fair hearing has been given to the
individual, and the determination has become final.
(d) Review.--Any determination by a State agency under this
section shall be subject to review in the same manner and to
the same extent as determinations under the State
unemployment compensation law, and only in that manner and to
that extent.
SEC. 207. DEFINITIONS.
For purposes of this subtitle:
(1) In general.--The terms ``compensation'', ``regular
compensation'', ``extended compensation'', ``additional
compensation'', ``benefit year'', ``base period'', ``State'',
``State agency'', ``State law'', and ``week'' have the
respective meanings given such terms under section 205 of the
Federal-State Extended Unemployment Compensation Act of 1970,
subject to paragraph (2).
[[Page H10875]]
(2) State law and regular compensation.--In the case of a
State entering into an agreement under this subtitle--
(A) ``State law'' shall be considered to refer to the State
law of such State, applied in conformance with the
modifications described in section 202(b)(2), subject to
section 202(c), and
(B) ``regular compensation'' shall be considered to refer
to such compensation, determined under its State law (applied
in the manner described in subparagraph (A)),
except as otherwise provided or where the context clearly
indicates otherwise.
SEC. 208. APPLICABILITY.
(a) In General.--An agreement entered into under this
subtitle shall apply to weeks of unemployment--
(1) beginning after the date on which such agreement is
entered into, and
(2) ending before January 1, 2003.
(b) Specific Rules.--Under such an agreement--
(1) the modification described in section 202(b)(2)(A)
(relating to alternative base periods) shall not apply except
in the case of initial claims filed after September 11, 2001,
(2) the modifications described in section 202(b)(2)(B)-(C)
(relating to part-time employment and increased benefits,
respectively) shall apply to weeks of unemployment (described
in subsection (a)), irrespective of the date on which an
individual's claim for benefits is filed, and
(3) the payments described in section 202(b)(1)(B)
(relating to temporary supplemental unemployment
compensation) shall not apply except in the case of
individuals exhausting their rights to regular compensation
(as described in clause (i) thereof) after September 11,
2001.
SEC. 209. SPECIAL REED ACT TRANSFER IN FISCAL YEAR 2002.
(a) In General.--Section 903 of the Social Security Act is
amended by adding at the end the following:
``Special Transfer in Fiscal Year 2002
``(d)(1) In the case of each State which enters into an
agreement under the Temporary Unemployment Compensation Act
of 2001, the Secretary of the Treasury shall transfer from
the Federal unemployment account to the account of such State
in the Unemployment Trust Fund the amount determined with
respect to such State under paragraph (2).
``(2) The amount to be transferred under this subsection to
a State account shall be equal to the amount which the
Secretary of Labor estimates would otherwise be transferred
under this section to such State account as of the beginning
of fiscal year 2003 (determined disregarding this subsection
and sections 202-208 of the Temporary Unemployment
Compensation Act of 2001, and assuming that the conditions
triggering the application of subsection (b) do not apply).
``(3) A transfer under this subsection to a State account
shall be made as soon as practicable once such State has
entered into an agreement referred to in paragraph (1).
``(4) Amounts transferred to a State account under this
subsection shall not be subject to the last sentence of
subsection (c)(2).''
(b) Limitations on Transfers.--Section 903(b) of the Social
Security Act shall apply to transfers under section 903(d) of
such Act (as amended by this section). For purposes of the
preceding sentence, such section 903(b) shall be deemed to be
amended as follows:
(1) By substituting ``the transfer date described in
subsection (d)(3)'' for ``October 1 of any fiscal year''.
(2) By substituting ``remain in the Federal unemployment
account'' for ``be transferred to the Federal unemployment
account as of the beginning of such October 1''.
(3) By substituting ``fiscal year 2002 (after the transfer
date described in subsection (d)(3))'' for ``the fiscal year
beginning on such October 1''.
(4) By substituting ``under subsection (d)'' for ``as of
October 1 of such fiscal year''.
(5) By substituting ``(as of the close of fiscal year
2002)'' for ``(as of the close of such fiscal year)''.
(c) Technical Amendment.--Section 903(c) of the Social
Security Act is amended by striking ``subsections (a) and
(b)'' each place it appears and inserting ``subsections (a),
(b), and (d)''.
(d) Regulations.--The Secretary of Labor may prescribe any
operating instructions or regulations necessary to carry out
this section and the amendments made by this section.
Subtitle B--PREMIUM ASSISTANCE FOR COBRA CONTINUATION COVERAGE
SEC. 211. PREMIUM ASSISTANCE FOR COBRA CONTINUATION COVERAGE.
(a) Establishment.--
(1) In general.--Not later than 60 days after the date of
enactment of this Act, the Secretary of the Treasury, in
consultation with the Secretary of Labor, shall establish a
program under which premium assistance for COBRA continuation
coverage shall be provided for qualified individuals under
this section.
(2) Qualified individuals.--For purposes of this section, a
qualified individual is an individual who--
(A) establishes that the individual--
(i) on or after July 1, 2001, and before the end of the 1-
year period beginning on the date of the enactment of this
Act, became entitled to elect COBRA continuation coverage;
and
(ii) has elected such coverage; and
(B) enrolls in the premium assistance program under this
section by not later than the end of such 1-year period.
(b) Limitation of Period of Premium Assistance.--Premium
assistance provided under this subsection shall end with
respect to an individual on the earlier of--
(1) the date the individual is no longer covered under
COBRA continuation coverage; or
(2) 12 months after the date the individual is first
enrolled in the premium assistance program established under
this section.
(c) Payment, and Crediting of Assistance.--
(1) Amount of assistance.--Premium assistance provided
under this section shall be equal to 75 percent of the amount
of the premium required for the COBRA continuation coverage.
(2) Provision of assistance.--Premium assistance provided
under this section shall be provided through the
establishment of direct payment arrangements with the
administrator of the group health plan (or other entity) that
provides or administers the COBRA continuation coverage. It
shall be a fiduciary duty of such administrator (or other
entity) to enter into such arrangements under this section.
(3) Premiums payable by qualified individual reduced by
amount of assistance.--Premium assistance provided under this
section shall be credited by such administrator (or other
entity) against the premium otherwise owed by the individual
involved for such coverage.
(d) Change in COBRA Notice.--
(1) General notice.--
(A) In general.--In the case of notices provided under
section 4980B(f)(6) of the Internal Revenue Code of 1986 with
respect to individuals who, on or after July 1, 2001, and
before the end of the 1-year period beginning on the date of
the enactment of this Act, become entitled to elect COBRA
continuation coverage, such notices shall include an
additional notification to the recipient of the availability
of premium assistance for such coverage under this section.
(B) Alternative notice.--In the case of COBRA continuation
coverage to which the notice provision under section
4980B(f)(6) of the Internal Revenue Code of 1986 does not
apply, the Secretary of the Treasury shall, in coordination
with administrators of the group health plans (or other
entities) that provide or administer the COBRA continuation
coverage involved, assure provision of such notice.
(C) Form.--The requirement of the additional notification
under this paragraph may be met by amendment of existing
notice forms or by inclusion of a separate document with the
notice otherwise required.
(2) Specific requirements.--Each additional notification
under paragraph (1) shall include--
(A) the forms necessary for establishing eligibility under
subsection (a)(2)(A) and enrollment under subsection
(a)(2)(B) in connection with the coverage with respect to
each covered employee or other qualified beneficiary;
(B) the name, address, and telephone number necessary to
contact the plan administrator and any other person
maintaining relevant information in connection with the
premium assistance; and
(C) the following statement displayed in a prominent
manner:
``You may be eligible to receive assistance with payment of
75 percent of your COBRA continuation coverage premiums for a
duration of not to exceed 12 months.''.
(3) Notice relating to retroactive coverage.--In the case
of such notices previously transmitted before the date of the
enactment of this Act in the case of an individual described
in paragraph (1) who has elected (or is still eligible to
elect) COBRA continuation coverage as of the date of the
enactment of this Act, the administrator of the group health
plan (or other entity) involved or the Secretary of the
Treasury (in the case described in the paragraph (1)(B))
shall provide (within 60 days after the date of the enactment
of this Act) for the additional notification required to be
provided under paragraph (1).
(4) Model notices.--The Secretary shall prescribe models
for the additional notification required under this
subsection.
(f) Obligation of Funds.--This section constitutes budget
authority in advance of appropriations Acts and represents
the obligation of the Federal Government to provide for the
payment of premium assistance under this section.
(g) Prompt Issuance of Guidance.--The Secretary of the
Treasury, in consultation with the Secretary of Labor, shall
issue guidance under this section not later than 30 days
after the date of the enactment of this Act.
(h) Definitions.--In this section:
(1) Administrator.--The term ``administrator'' has the
meaning given such term in section 3(16) of the Employee
Retirement Income Security Act of 1974.
(2) COBRA continuation coverage.--The term ``COBRA
continuation coverage'' means continuation coverage provided
pursuant to title XXII of the Public Health Service Act,
section 4980B of the Internal Revenue Code of 1986 (other
than subsection (f)(1) of such section insofar as it relates
to pediatric vaccines), part 6 of of title I of the Employee
Retirement Income Security Act of 1974 (other than under
section 609), section 8905a of title 5, United States Code,
or under a State program that provides continuation coverage
comparable to such continuation coverage.
[[Page H10876]]
(3) Group health plan.--The term ``group health plan'' has
the meaning given such term in section 9832(a) of the
Internal Revenue Code of 1986.
(4) State.--The term ``State'' includes the District of
Columbia, the Commonwealth of Puerto Rico, the Virgin
Islands, Guam, American Samoa, and the Commonwealth of the
Northern Mariana Islands.
Subtitle C--Additional Assistance for Temporary Health Insurance
Coverage
SEC. 221. OPTIONAL TEMPORARY MEDICAID COVERAGE FOR CERTAIN
UNINSURED EMPLOYEES.
(a) In General.--Notwithstanding any other provision of
law, with respect to any month before the ending month, a
State may elect to provide, under its medicaid program under
title XIX of the Social Security Act, medical assistance in
the case of an individual--
(1)(A) who has become totally or partially separated from
employment on or after July 1, 2001, and before the end of
such ending month; or
(B) whose hours of employment have been reduced on or after
July 1, 2001, and before the end of such ending month;
(2) who is not eligible for COBRA continuation coverage;
and
(3) who is uninsured.
(b) Limitation of Period of Coverage.--Assistance under
this section shall end with respect to an individual on the
earlier of--
(1) the date the individual is no longer uninsured; or
(2) 12 months after the date the individual is first
determined to be eligible for medical assistance under this
section.
(c) Special Rules.--In the case of medical assistance
provided under this section--
(1) the Federal medical assistance percentage under section
1905(b) of the Social Security Act shall be the enhanced FMAP
(as defined in section 2105(b) of such Act);
(2) a State may elect to apply alternative income, asset,
and resource limitations and the provisions of section
1916(g) of such Act, except that in no case shall a State
cover individuals with higher family income without covering
individuals with a lower family income;
(3) such medical assistance shall not be provided for
periods before the date the individual becomes uninsured;
(4) a State may elect to make eligible for such assistance
a spouse or children of an individual eligible for medical
assistance under paragraph (1), if such spouse or children
are uninsured;
(5) individuals eligible for medical assistance under this
section shall be deemed to be described in the list of
individuals described in the matter preceding paragraph (1)
of section 1905(a) of such Act;
(6) a State may elect to provide such medical assistance
without regard to any limitation under sections 401(a),
402(b), 403, and 421 of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 (8 U.S.C. 1611(a),
1612(b), 1613, and 1631) and no debt shall accrue under an
affidavit of support against any sponsor of an individual who
is an alien who is provided such assistance, and the cost of
such assistance shall not be considered as an unreimbursed
cost; and
(7) the Secretary of Health and Human Services shall not
count, for purposes of section 1108(f) of the Social Security
Act, such amount of payments under this section as bears a
reasonable relationship to the average national proportion of
payments made under this section for the 50 States and the
District of Columbia to the payments otherwise made under
title XIX for such States and District.
(d) Definitions.--For purposes of this subtitle:
(1) Uninsured.--The term ``uninsured'' means, with respect
to an individual, that the individual is not covered under--
(A) a group health plan (as defined in section 2791(a) of
the Public Health Service Act),
(B) health insurance coverage (as defined in section
2791(b)(1) of the Public Health Service Act), or
(C) a program under title XVIII, XIX, or XXI of the Social
Security Act, other than under such title XIX pursuant to
this section.
For purposes of this paragraph, such coverage under
subparagraph (A) or (B) shall not include coverage consisting
solely of coverage of excepted benefits (as defined in
section 2791(c) of the Public Health Service Act).
(2) COBRA continuation coverage.--The term ``COBRA
continuation coverage'' means coverage under a group health
plan provided by an employer pursuant to title XXII of the
Public Health Service Act, section 4980B of the Internal
Revenue Code of 1986, part 6 of subtitle B of title I of the
Employee Retirement Income Security Act of 1974, or section
8905a of title 5, United States Code.
(3) State.--The term ``State'' has the meaning given such
term for purposes of title XIX of the Social Security Act.
(4) Ending month.--The term ``ending month'' means the last
month that begins before the date that is 1 year after the
date of the enactment of this Act.
(e) Effective Date.--This section shall take effect upon
its enactment, whether or not regulations implementing this
section are issued.
(f) Limitation on Election.--A State may not elect to
provide coverage under this section unless the State elects
to provide coverage under section 222.
SEC. 222. OPTIONAL TEMPORARY COVERAGE FOR UNSUBSIDIZED
PORTION OF COBRA CONTINUATION PREMIUMS.
(a) In General.--Notwithstanding any other provision of
law, with respect to COBRA continuation coverage provided for
any month through the ending month, a State may elect to
provide payment of the unsubsidized portion of the premium
for COBRA continuation coverage in the case of any
individual--
(1)(A) who has become totally or partially separated from
employment on or after July 1, 2001, and before the end of
the ending month; or
(B) whose hours of employment have been reduced on or after
July 1, 2001, and before the end of such ending month; and
(2) who is eligible for, and has elected coverage under,
COBRA continuation coverage.
(b) Limitation of Period of Coverage.--Premium assistance
under this section shall end with respect to an individual on
the earlier of--
(1) the date the individual is no longer covered under
COBRA continuation coverage; or
(2) 12 months after the date the individual is first
determined to be eligible for premium assistance under this
section.
(c) Financial Payment to States.--A State providing premium
assistance under this section shall be entitled to payment
under section 1903(a) of the Social Security Act with respect
to such assistance (and administrative expenses relating to
such assistance) in the same manner as such State is entitled
to payment with respect to medical assistance (and such
administrative expenses) under such section, except that, for
purposes of this subsection, any reference to the Federal
medical assistance percentage shall be deemed a reference to
the enhanced FMAP (as defined in section 2105(b) of such
Act). The provisions of subsections (c)(6) and (c)(7) of
section 221 shall apply with respect to this section in the
same manner as it applies under such section.
(d) Unsubsidized Portion of Premium for COBRA Continuation
Coverage.--For purposes of this section, the term
`unsubsidized portion of premium for COBRA continuation
coverage' means that portion of the premium for COBRA
continuation coverage for which there is no financial
assistance available under 211.
(e) Effective Date.--This section shall take effect upon
its enactment, whether or not regulations implementing this
section are issued.
(f) Limitation on Election.--A State may not elect to
provide coverage under this section unless the State elects
to provide coverage under section 221.
Subtitle D--Temporary Increases of Medicaid FMAP For Fiscal Year 2002
SEC. 231. TEMPORARY INCREASES OF MEDICAID FMAP FOR FISCAL
YEAR 2002.
(a) Permitting Maintenance of Fiscal Year 2001 FMAP.--
Notwithstanding any other provision of law, but subject to
subsection (d), if the FMAP determined without regard to this
section for a State for fiscal year 2002 is less than the
FMAP as so determined for fiscal year 2001, the FMAP for the
State for fiscal year 2001 shall be substituted for the
State's FMAP for fiscal year 2002, before the application of
this section.
(b) General 1.5 Percentage Point Increase.--Notwithstanding
any other provision of law, but subject to subsections (d)
and (e), for each State for each calendar quarter in fiscal
year 2002, the FMAP (taking into account the application of
subsection (a)) shall be increased by 1.5 percentage points.
(c) Further Increase for States with High Unemployment
Rates.--
(1) In general.--Notwithstanding any other provision of
law, but subject to subsections (d) and (e), if a State is a
high unemployment State for a calendar quarter in fiscal year
2002, then the FMAP for that State for that calendar quarter
and for any subsequent calendar quarter in such fiscal year
regardless of whether the State continues to be high
unemployment State for that subsequent calendar quarter shall
be increased (after the application of subsections (a) and
(b)) by 1.5 percentage points.
(2) High unemployment state.--For purposes of this
subsection, a State is a high unemployment State for a
calendar quarter if, for any 3 consecutive month period
beginning on or after June 2001 and ending with the second
month before the beginning of the calendar quarter, the State
has an average seasonally adjusted unemployment rate that
exceeds the average weighted unemployment rate during such
period. Such unemployment rates for such months shall be
determined based on publications of the Bureau of Labor
Statistics of the Department of Labor.
(3) Average weighted unemployment rate defined.--For
purposes of paragraph (2), the ``average weighted
unemployment rate'' for a period is--
(A) the sum of the seasonally adjusted number of unemployed
civilians in each State and the District of Columbia for the
period, divided by
(B) the sum of the civilian labor force in each State and
the District of Columbia for the period.
(d) Scope of Application.--The increases in the FMAP for a
State under this section shall apply only for purposes of
title XIX of the Social Security Act and shall not apply with
respect to--
(1) disproportionate share hospital payments described in
section 1923 of such Act; and
[[Page H10877]]
(2) payments under titles IV and XXI of such Act.
(e) State Eligibility.--A State is eligible for an increase
in its FMAP under subsection (b) or (c) or an increase in a
cap amount under subsection (f) only if the eligibility under
its State plan under title XIX of the Social Security Act
(including any waiver under such title or under section 1115
of such Act) is no more restrictive than the eligibility
under such plan (or waiver) as in effect on October 1, 2001.
(f) One-Year Increase in Cap on Medicaid Payments to
Territories.--Notwithstanding any other provision of law, but
subject to section (e), with respect to fiscal year 2002, the
amounts otherwise determined for Puerto Rico, the Virgin
Islands, Guam, the Northern Mariana Islands, and American
Samoa under subsections (f) and (g)(2) of section 1108 of the
Social Security Act (42 U.S.C 1308) shall each be increased
by 9 percent of such amounts.
(g) Definitions.--For purposes of this section:
(1) FMAP.--The term ``FMAP'' means the Federal medical
assistance percentage, as defined in section 1905(b) of the
Social Security Act (42 U.S.C. 1396d(b)).
(2) State.--The term ``State'' has the meaning given such
term for purposes of title XIX of the Social Security Act.
Subtitle E--Other Medicaid Changes
SEC. 241. PERMANENT APPLICATION OF BBA MEDICAID DSH
TRANSITION PAYMENT RULE TO PUBLIC HOSPITALS IN
ALL STATES.
(a) In General.--Section 701(c) of the Medicare, Medicaid,
and SCHIP Benefits Improvement and Protection Act of 2000
(114 Stat. 2763A-571) (as enacted into law by section 1(a)(6)
of Public Law 106-554) is amended--
(1) in paragraph (1), by striking ``During the period
described in paragraph (3), with respect to a State,'' and
inserting ``Beginning, with respect to a State, on the first
day of the first State fiscal year that begins after
September 30, 2002,'';
(2) by striking paragraph (3); and
(3) by redesignating paragraph (4) as paragraph (3).
(b) Effective Date.--The amendments made by subsection (a)
shall take effect as if included in the enactment of section
701(c) of the Medicare, Medicaid, and SCHIP Benefits
Improvement and Protection Act of 2000 (114 Stat. 2763A-571)
(as enacted into law by section 1(a)(6) of Public Law 106-
554).
SEC. 242. SUPPLEMENTAL PAYMENT PLANS.
(a) In General.--With respect to a State described in
subsection (b), the aggregate upper payment limits applied
under sections 447.272, 447.304, and 447.321 of title 42,
Code of Federal Regulations (and any other applicable section
of part 447 of title 42, Code of Federal Regulations) shall
be no less than those limits specified in the final rule
issued January 12, 2001, pursuant to section 705(a) of the
Medicare, Medicaid, and SCHIP Benefits Improvement and
Protection Act of 2000 (114 Stat. 2763A-575) (as enacted into
law by section 1(a)(6) of Public Law 106-554).
(b) State Described.--A State described in this subsection
is a State that had a State medicaid plan payment provision
or methodology (including a payment provision or methodology
approved under a waiver of the State medicaid plan) which--
(1) provided for payments (other than those payments
required under section 1902(a)(13)(A)(iv) of the Social
Security Act (42 U.S.C. 1396a(a)(13)(A)(iv)) to hospitals for
services provided to recipients of medical assistance under
the State medicaid plan that are supplemental to payments
otherwise payable to the hospitals for such services; and
(2) was approved, had been deemed approved, or was in
effect on or before October 1, 1992.
(c) Applicability.--The provisions of this section shall
continue to apply to a State described in subsection (b)
regardless of any subsequent amendments or modifications to
the payment provision or methodology described in that
subsection.
SEC. 243. DELAY IN MEDICAID UPL CHANGES FOR NON-STATE
GOVERNMENT-OWNED OR OPERATED HOSPITALS.
(a) Moratorium on UPL Changes.--Any change in the upper
limits on payment under title XIX of the Social Security Act
for services of non-State government-owned or operated
hospitals that are specified in sections 447.272 and 447.321
of title 42, Code of Federal Regulations as such sections
were in effect on March 13, 2001, whether based on the
proposed rule published on November 23, 2001, or otherwise --
(1) may not be published in final form before January 1,
2003; and
(2) may not apply for any period beginning before January
1, 2003.
(b) Mitigation Plan.--The Secretary of Health and Human
Services shall submit to the Congress, at least 3 months
before publishing a final regulation described in subsection
(a), a report that contains a plan for mitigating the loss of
funding to non-State government-owned or operated hospitals
as a result of such regulation. Such report shall also
include such recommendations for legislative action as the
Secretary deems appropriates.
TITLE III--TAX RELIEF FOR VICTIMS OF TERRORISM
Subtitle A--Relief Provisions For Victims of Terrorist Attacks
SEC. 301. INCOME AND EMPLOYMENT TAXES OF VICTIMS OF TERRORIST
ATTACKS.
(a) In General.--Section 692 (relating to income taxes of
members of Armed Forces on death) is amended by adding at the
end the following new subsection:
``(d) Individuals Dying as a Result of Certain Terrorist
Attacks.--
``(1) In general.--In the case of any individual who dies
as a result of wounds or injury incurred as a result of the
terrorist attacks against the United States on April 19,
1995, or September 11, 2001, or who dies as a result of
illness incurred as a result of a terrorist attack involving
anthrax occurring on or after September 11, 2001, and before
January 1, 2002, any tax imposed by this subtitle shall not
apply--
``(A) with respect to the taxable year in which falls the
date of such individual's death, and
``(B) with respect to any prior taxable year in the period
beginning with the last taxable year ending before the
taxable year in which the wounds, injury, or illness were
incurred.
``(2) Exceptions.--
``(A) Taxation of certain benefits.--Subject to such rules
as the Secretary may prescribe, paragraph (1) shall not apply
to the amount of any tax imposed by this subtitle which would
be computed by only taking into account the items of income,
gain, or other amounts attributable to--
``(i) amounts payable in the taxable year by reason of the
death of an individual described in paragraph (1) which would
have been payable in such taxable year if the death had
occurred by reason of an event other than an event described
in paragraph (1), or
``(ii) amounts payable in the taxable year which would not
have been payable in such taxable year but for an action
taken after the date of the applicable terrorist attack.
``(B) No relief for perpetrators.--Paragraph (1) shall not
apply with respect to any individual identified by the
Attorney General to have been a participant or conspirator in
any event described in paragraph (1), or a representative of
such individual.''.
(b) Refund of Other Taxes Paid.--Section 692, as amended by
subsection (a), is amended by adding at the end the following
new subsection:
``(e) Refund of Other Taxes Paid.--In determining the
amount of tax under this section to be credited or refunded
as an overpayment with respect to any individual for any
period, such amount shall be increased by an amount equal to
the amount of taxes imposed and collected under chapter 21
and sections 3201(a), 3211(a)(1), and 3221(a) with respect to
such individual for such period.''.
(c) Conforming Amendments.--
(1) Section 5(b)(1) is amended by inserting ``and victims
of certain terrorist attacks'' before ``on death''.
(2) Section 6013(f)(2)(B) is amended by inserting ``and
victims of certain terrorist attacks'' before ``on death''.
(d) Clerical Amendments.--
(1) The heading of section 692 is amended to read as
follows:
``SEC. 692. INCOME AND EMPLOYMENT TAXES OF MEMBERS OF ARMED
FORCES AND VICTIMS OF CERTAIN TERRORIST ATTACKS
ON DEATH.''.
(2) The item relating to section 692 in the table of
sections for part II of subchapter J of chapter 1 is amended
to read as follows:
``Sec. 692. Income and employment taxes of members of Armed Forces and
victims of certain terrorist attacks on death.''.
(e) Effective Date; Waiver of Limitations.--
(1) Effective date.--The amendments made by this section
shall apply to taxable years ending before, on, or after
September 11, 2001.
(2) Waiver of limitations.--If refund or credit of any
overpayment of tax resulting from the amendments made by this
section is prevented at any time before the close of the 1-
year period beginning on the date of the enactment of this
Act by the operation of any law or rule of law (including res
judicata), such refund or credit may nevertheless be made or
allowed if claim therefor is filed before the close of such
period.
SEC. 302. ESTATE TAX REDUCTION.
(a) In General.--Section 2201 is amended to read as
follows:
``SEC. 2201. COMBAT ZONE-RELATED DEATHS OF MEMBERS OF THE
ARMED FORCES AND DEATHS OF VICTIMS OF CERTAIN
TERRORIST ATTACKS.
``(a) In General.--Unless the executor elects not to have
this section apply, in applying section 2001 to the estate of
a qualified decedent, the rate schedule set forth in
subsection (c) shall be deemed to be the rate schedule set
forth in section 2001(c).
``(b) Qualified Decedent.--For purposes of this section,
the term `qualified decedent' means--
``(1) any citizen or resident of the United States dying
while in active service of the Armed Forces of the United
States, if such decedent--
``(A) was killed in action while serving in a combat zone,
as determined under section 112(c), or
``(B) died as a result of wounds, disease, or injury
suffered while serving in a combat zone (as determined under
section 112(c)), and while in the line of duty, by reason of
a hazard to which such decedent was subjected as an incident
of such service, or
``(2) any individual who died as a result of wounds or
injury incurred as a result of the terrorist attacks against
the United States on April 19, 1995, or September 11, 2001,
or
[[Page H10878]]
who died as a result of illness incurred as a result of a
terrorist attack involving anthrax occurring on or after
September 11, 2001, and before January 1, 2002.
Paragraph (2) shall not apply with respect to any individual
identified by the Attorney General to have been a participant
or conspirator in any such terrorist attack, or a
representative of such individual.
``(c) Rate Schedule.--
``If the amount with respect to which the tentative tax to be computed
The tentative tax is:
1 percent of the amount by which such amount exceeds $100,000..........
$500 plus 2 percent of the excess over $150,000........................
$1,500 plus 3 percent of the excess over $200,000......................
$4,500 plus 4 percent of the excess over $300,000......................
$12,500 plus 5 percent of the excess over $500,000.....................
$22,500 plus 6 percent of the excess over $700,000.....................
$34,500 plus 7 percent of the excess over $900,000.....................
$48,500 plus 8 percent of the excess over $1,100,000...................
$88,500 plus 9 percent of the excess over $1,600,000...................
$133,500 plus 10 percent of the excess over $2,100,000.................
$183,500 plus 11 percent of the excess over $2,600,000.................
$238,500 plus 12 percent of the excess over $3,100,000.................
$298,500 plus 13 percent of the excess over $3,600,000.................
$363,500 plus 14 percent of the excess over $4,100,000.................
$503,500 plus 15 percent of the excess over $5,100,000.................
$653,500 plus 16 percent of the excess over $6,100,000.................
$813,500 plus 17 percent of the excess over $7,100,000.................
$983,500 plus 18 percent of the excess over $8,100,000.................
$1,163,500 plus 19 percent of the excess over $9,100,000...............
$1,353,500 plus 20 percent of the excess over $10,100,000..............
``(d) Determination of Unified Credit.--In the case of an
estate to which this section applies, subsection (a) shall
not apply in determining the credit under section 2010.''.
(b) Conforming Amendments.--
(1) Section 2011 is amended by striking subsection (d) and
by redesignating subsections (e), (f), and (g) as subsections
(d), (e), and (f), respectively.
(2) Section 2053(d)(3)(B) is amended by striking ``section
2011(e)'' and inserting ``section 2011(d)''.
(3) Paragraph (9) of section 532(c) of the Economic Growth
and Tax Relief Reconciliation Act of 2001 is repealed.
(c) Clerical Amendment.--The item relating to section 2201
in the table of sections for subchapter C of chapter 11 is
amended to read as follows:
``Sec. 2201. Combat zone-related deaths of members of the Armed Forces
and deaths of victims of certain terrorist attacks.''.
(d) Effective Date; Waiver of Limitations.--
(1) Effective date.--The amendments made by this section
shall apply to estates of decedents--
(A) dying on or after September 11, 2001, and
(B) in the case of individuals dying as a result of the
April 19, 1995, terrorist attack, dying on or after April 19,
1995.
(2) Waiver of limitations.--If refund or credit of any
overpayment of tax resulting from the amendments made by this
section is prevented at any time before the close of the 1-
year period beginning on the date of the enactment of this
Act by the operation of any law or rule of law (including res
judicata), such refund or credit may nevertheless be made or
allowed if claim therefor is filed before the close of such
period.
SEC. 303. PAYMENTS BY CHARITABLE ORGANIZATIONS TREATED AS
EXEMPT PAYMENTS.
(a) In General.--For purposes of the Internal Revenue Code
of 1986--
(1) payments made by an organization described in section
501(c)(3) of such Code by reason of the death, injury,
wounding, or illness of an individual incurred as the result
of the terrorist attacks against the United States on
September 11, 2001, or a terrorist attack involving anthrax
occurring on or after September 11, 2001, and before January
1, 2002, shall be treated as related to the purpose or
function constituting the basis for such organization's
exemption under section 501 of such Code if such payments are
made using an objective formula which is consistently
applied, and
(2) in the case of a private foundation (as defined in
section 509 of such Code), any payment described in paragraph
(1) shall not be treated as made to a disqualified person for
purposes of section 4941 of such Code.
(b) Effective Date.--This section shall apply to payments
made on or after September 11, 2001.
SEC. 304. EXCLUSION OF CERTAIN CANCELLATIONS OF INDEBTEDNESS.
(a) In General.--For purposes of the Internal Revenue Code
of 1986--
(1) gross income shall not include any amount which (but
for this section) would be includible in gross income by
reason of the discharge (in whole or in part) of indebtedness
of any taxpayer if the discharge is by reason of the death of
an individual incurred as the result of the terrorist attacks
against the United States on September 11, 2001, or a
terrorist attack involving anthrax occurring on or after
September 11, 2001, and before January 1, 2002, and
(2) return requirements under section 6050P of such Code
shall not apply to any discharge described in paragraph (1).
(b) Effective Date.--This section shall apply to discharges
made on or after September 11, 2001, and before January 1,
2002.
SEC. 305. TREATMENT OF CERTAIN STRUCTURED SETTLEMENT PAYMENTS
AND DISABILITY TRUSTS.
(a) Imposition of Excise Tax on Persons Who Acquire Certain
Structured Settlement Payments in Factoring Transactions.--
(1) In general.--Subtitle E is amended by adding at the end
the following new chapter:
``CHAPTER 55--STRUCTURED SETTLEMENT FACTORING TRANSACTIONS
``Sec. 5891. Structured settlement factoring transactions for certain
victims of terrorism.
``SEC. 5891. STRUCTURED SETTLEMENT FACTORING TRANSACTIONS FOR
CERTAIN VICTIMS OF TERRORISM.
``(a) Imposition of Tax.--There is hereby imposed on any
person who acquires directly or indirectly structured
settlement payment rights in a structured settlement
factoring transaction a tax equal to 40 percent of the
factoring discount as determined under subsection (c)(4) with
respect to such factoring transaction.
``(b) Exception for Certain Approved Transactions.--
``(1) In general.--The tax under subsection (a) shall not
apply in the case of a structured settlement factoring
transaction in which the transfer of structured settlement
payment rights is approved in advance in a qualified order.
``(2) Qualified order.--For purposes of this section, the
term `qualified order' means a final order, judgment, or
decree which--
``(A) finds that the transfer described in paragraph (1)--
``(i) does not contravene any Federal or State statute or
the order of any court or responsible administrative
authority, and
``(ii) is in the best interest of the payee, taking into
account the welfare and support of the payee's dependents,
and
``(B) is issued--
``(i) under the authority of an applicable State statute by
an applicable State court, or
``(ii) by the responsible administrative authority (if any)
which has exclusive jurisdiction over the underlying action
or proceeding which was resolved by means of the structured
settlement.
``(3) Applicable state statute.--For purposes of this
section, the term `applicable State statute' means a statute
providing for the entry of an order, judgment, or decree
described in paragraph (2)(A) which is enacted by--
``(A) the State in which the payee of the structured
settlement is domiciled, or
``(B) if there is no statute described in subparagraph (A),
the State in which either the party to the structured
settlement (including an assignee under a qualified
assignment under section 130) or the person issuing the
funding asset for the structured settlement is domiciled or
has its principal place of business.
``(4) Applicable state court.--For purposes of this
section--
``(A) In general.--The term `applicable State court' means,
with respect to any applicable State statute, a court of the
State which enacted such statute.
``(B) Special rule.--In the case of an applicable State
statute described in paragraph (3)(B), such term also
includes a court of the State in which the payee of the
structured settlement is domiciled.
``(5) Qualified order dispositive.--A qualified order shall
be treated as dispositive for purposes of the exception under
this subsection.
``(c) Definitions.--For purposes of this section--
``(1) Structured settlement.--The term `structured
settlement' means an arrangement--
``(A) which is established by--
``(i) suit or agreement for the periodic payment of damages
excludable from the gross income of the recipient under
section 104(a)(2), or
``(ii) agreement for the periodic payment of compensation
under any workers' compensation law excludable from the gross
income of the recipient under section 104(a)(1), and
``(B) under which the periodic payments are--
``(i) of the character described in subparagraphs (A) and
(B) of section 130(c)(2), and
``(ii) payable by a person who is a party to the suit or
agreement or to the workers' compensation claim or by a
person who has assumed the liability for such periodic
payments under a qualified assignment in accordance with
section 130.
``(2) Structured settlement payment rights.--The term
`structured settlement payment rights' means rights to
receive payments under a structured settlement relating to
claims for death, wounding, injury, or
[[Page H10879]]
illness as a result of the terrorist attacks against the
United States on September 11, 2001, or a terrorist attack
involving anthrax occurring on or after September 11, 2001,
and before January 1, 2002.
``(3) Structured settlement factoring transaction.--
``(A) In general.--The term `structured settlement
factoring transaction' means a transfer of structured
settlement payment rights (including portions of structured
settlement payments) made for consideration by means of sale,
assignment, pledge, or other form of encumbrance or
alienation for consideration.
``(B) Exception.--Such term shall not include--
``(i) the creation or perfection of a security interest in
structured settlement payment rights under a blanket security
agreement entered into with an insured depository institution
in the absence of any action to redirect the structured
settlement payments to such institution (or agent or
successor thereof) or otherwise to enforce such blanket
security interest as against the structured settlement
payment rights, or
``(ii) a subsequent transfer of structured settlement
payment rights acquired in a structured settlement factoring
transaction.
``(4) Factoring discount.--The term `factoring discount'
means an amount equal to the excess of--
``(A) the aggregate undiscounted amount of structured
settlement payments being acquired in the structured
settlement factoring transaction, over
``(B) the total amount actually paid by the acquirer to the
person from whom such structured settlement payments are
acquired.
``(5) Responsible administrative authority.--The term
`responsible administrative authority' means the
administrative authority which had jurisdiction over the
underlying action or proceeding which was resolved by means
of the structured settlement.
``(6) State.--The term `State' includes the Commonwealth of
Puerto Rico and any possession of the United States.
``(d) Coordination With Other Provisions.--
``(1) In general.--If the applicable requirements of
sections 72, 104(a)(1), 104(a)(2), 130, and 461(h) were
satisfied at the time the structured settlement involving
structured settlement payment rights was entered into, the
subsequent occurrence of a structured settlement factoring
transaction shall not affect the application of the
provisions of such sections to the parties to the structured
settlement (including an assignee under a qualified
assignment under section 130) in any taxable year.
``(2) No withholding of tax.--The provisions of section
3405 regarding withholding of tax shall not apply to the
person making the payments in the event of a structured
settlement factoring transaction.
``(3) No inference.--No inference shall be drawn from the
application of this subsection to only those payment rights
described in subsection (c)(2).''.
(2) Clerical amendment.--The table of chapters for subtitle
E is amended by adding at the end the following new item:
``Chapter 55. Structured settlement factoring transactions.''.
(3) Effective dates.--
(A) In general.--The amendments made by this subsection
(other than the provisions of section 5891(d) of the Internal
Revenue Code of 1986, as added by this subsection) shall
apply to structured settlement factoring transactions (as
defined in section 5891(c) of such Code (as so added))
entered into on or after the 30th day following the date of
the enactment of this Act.
(B) Clarification of existing law.--Section 5891(d) of such
Code (as so added) shall apply to structured settlement
factoring transactions (as defined in section 5891(c) of such
Code (as so added)) entered into on or after such 30th day.
(C) Transition rule.--In the case of a structured
settlement factoring transaction entered into during the
period beginning on the 30th day following the date of the
enactment of this Act and ending on July 1, 2002, no tax
shall be imposed under section 5891(a) of such Code if--
(i) the structured settlement payee is domiciled in a State
(or possession of the United States) which has not enacted a
statute providing that the structured settlement factoring
transaction is ineffective unless the transaction has been
approved by an order, judgment, or decree of a court (or
where applicable, a responsible administrative authority)
which finds that such transaction--
(I) does not contravene any Federal or State statute or the
order of any court (or responsible administrative authority),
and
(II) is in the best interest of the structured settlement
payee or is appropriate in light of a hardship faced by the
payee, and
(ii) the person acquiring the structured settlement payment
rights discloses to the structured settlement payee in
advance of the structured settlement factoring transaction
the amounts and due dates of the payments to be transferred,
the aggregate amount to be transferred, the consideration to
be received by the structured settlement payee for the
transferred payments, the discounted present value of the
transferred payments (including the present value as
determined in the manner described in section 7520 of such
Code), and the expenses required under the terms of the
structured settlement factoring transaction to be paid by the
structured settlement payee or deducted from the proceeds of
such transaction.
(b) Personal Exemption Deduction for Certain Disability
Trusts.--
(1) In general.--Section 642(b) (relating to deduction for
personal exemption) is amended--
(A) by striking ``An estate'' and inserting:
``(1) In general.--An estate'', and
(2) by adding at the end the following new paragraph:
``(2) Full personal exemption amount for certain disability
trusts.--Paragraph (1) shall not apply, and the deduction
under section 151 shall apply, to any disability trust
described in subsection (c)(2)(B)(iv), (d)(4)(A), or
(d)(4)(C) of section 1917 of the Social Security Act (42
U.S.C. 1396p) for a beneficiary disabled as the result of a
wounding, injury, or illness as a result of the terrorist
attacks against the United States on April 19, 1995, or
September 11, 2001, or a terrorist attack involving anthrax
occurring on or after September 11, 2001, and before January
1, 2002.''.
(2) Effective date; waiver of limitations.--
(A) Effective date.--The amendments made by this subsection
shall apply to taxable years ending before, on, or after
September 11, 2001.
(B) Waiver of limitations.--If refund or credit of any
overpayment of tax resulting from the amendments made by this
subsection is prevented at any time before the close of the
1-year period beginning on the date of the enactment of this
Act by the operation of any law or rule of law (including res
judicata), such refund or credit may nevertheless be made or
allowed if claim therefor is filed before the close of such
period.
SEC. 306. NO IMPACT ON SOCIAL SECURITY TRUST FUND.
(a) In General.--Nothing in this title (or an amendment
made by this title) shall be construed to alter or amend
title II of the Social Security Act (or any regulation
promulgated under that Act).
(b) Transfers.--
(1) Estimate of secretary.--The Secretary of the Treasury
shall annually estimate the impact that the enactment of this
Act has on the income and balances of the trust funds
established under section 201 of the Social Security Act (42
U.S.C. 401).
(2) Transfer of funds.--If, under paragraph (1), the
Secretary of the Treasury estimates that the enactment of
this Act has a negative impact on the income and balances of
the trust funds established under section 201 of the Social
Security Act (42 U.S.C. 401), the Secretary shall transfer,
not less frequently than quarterly, from the general revenues
of the Federal Government an amount sufficient so as to
ensure that the income and balances of such trust funds are
not reduced as a result of the enactment of this Act.
Subtitle B--General Relief for Victims of Disasters and Terroristic or
Military Actions
SEC. 311. EXCLUSION FOR DISASTER RELIEF PAYMENTS.
(a) In General.--Part III of subchapter B of chapter 1
(relating to items specifically excluded from gross income)
is amended by redesignating section 139 as section 140 and
inserting after section 138 the following new section:
``SEC. 139. DISASTER RELIEF PAYMENTS.
``(a) General Rule.--Gross income shall not include--
``(1) any amount received as payment under section 406 of
the Air Transportation Safety and System Stabilization Act,
or
``(2) any amount received by an individual as a qualified
disaster relief payment.
``(b) Qualified Disaster Relief Payment Defined.--For
purposes of this section, the term `qualified disaster relief
payment' means any amount paid to or for the benefit of an
individual--
``(1) to reimburse or pay reasonable and necessary
personal, family, living, or funeral expenses incurred as a
result of a qualified disaster,
``(2) to reimburse or pay reasonable and necessary expenses
incurred for the repair or rehabilitation of a personal
residence or repair or replacement of its contents to the
extent that the need for such repair, rehabilitation, or
replacement is attributable to a qualified disaster,
``(3) by a person engaged in the furnishing or sale of
transportation as a common carrier by reason of the death or
personal physical injuries incurred as a result of a
qualified disaster, or
``(4) if such amount is paid by a Federal, State, or local
government, or agency or instrumentality thereof, in
connection with a qualified disaster in order to promote the
general welfare,
but only to the extent any expense compensated by such
payment is not otherwise compensated for by insurance or
otherwise.
``(c) Qualified Disaster Defined.--For purposes of this
section, the term `qualified disaster' means--
``(1) a disaster which results from a terroristic or
military action (as defined in section 692(c)(2)),
``(2) a Presidentially declared disaster (as defined in
section 1033(h)(3)),
``(3) a disaster which results from an accident involving a
common carrier, or from any other event, which is determined
by the Secretary to be of a catastrophic nature, or
[[Page H10880]]
``(4) with respect to amounts described in subsection
(b)(4), a disaster which is determined by an applicable
Federal, State, or local authority (as determined by the
Secretary) to warrant assistance from the Federal, State, or
local government or agency or instrumentality thereof.
``(d) Coordination With Employment Taxes.--For purposes of
chapter 2 and subtitle C, a qualified disaster relief payment
shall not be treated as net earnings from self-employment,
wages, or compensation subject to tax.
``(e) No Relief for Certain Individuals.--Subsection (a)
shall not apply with respect to any individual identified by
the Attorney General to have been a participant or
conspirator in a terroristic action (as so defined), or a
representative of such individual.''.
(b) Conforming Amendments.--The table of sections for part
III of subchapter B of chapter 1 is amended by striking the
item relating to section 139 and inserting the following new
items:
``Sec. 139. Disaster relief payments.
``Sec. 140. Cross references to other Acts.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years ending on or after September 11,
2001.
SEC. 312. AUTHORITY TO POSTPONE CERTAIN DEADLINES AND
REQUIRED ACTIONS.
(a) Expansion of Authority Relating to Disasters and
Terroristic or Military Actions.--Section 7508A is amended to
read as follows:
``SEC. 7508A. AUTHORITY TO POSTPONE CERTAIN DEADLINES BY
REASON OF PRESIDENTIALLY DECLARED DISASTER OR
TERRORISTIC OR MILITARY ACTIONS.
``(a) In General.--In the case of a taxpayer determined by
the Secretary to be affected by a Presidentially declared
disaster (as defined in section 1033(h)(3)) or a terroristic
or military action (as defined in section 692(c)(2)), the
Secretary may specify a period of up to one year that may be
disregarded in determining, under the internal revenue laws,
in respect of any tax liability of such taxpayer--
``(1) whether any of the acts described in paragraph (1) of
section 7508(a) were performed within the time prescribed
therefor (determined without regard to extension under any
other provision of this subtitle for periods after the date
(determined by the Secretary) of such disaster or action),
``(2) the amount of any interest, penalty, additional
amount, or addition to the tax for periods after such date,
and
``(3) the amount of any credit or refund.
``(b) Special Rules Regarding Pensions, Etc.--In the case
of a pension or other employee benefit plan, or any sponsor,
administrator, participant, beneficiary, or other person with
respect to such plan, affected by a disaster or action
described in subsection (a), the Secretary may specify a
period of up to one year which may be disregarded in
determining the date by which any action is required or
permitted to be completed under this title. No plan shall be
treated as failing to be operated in accordance with the
terms of the plan solely as the result of disregarding any
period by reason of the preceding sentence.
``(c) Special Rules for Overpayments.--The rules of section
7508(b) shall apply for purposes of this section.''.
(b) Clarification of Scope of Acts Secretary May
Postpone.--Section 7508(a)(1)(K) (relating to time to be
disregarded) is amended by striking ``in regulations
prescribed under this section''.
(c) Conforming Amendments to ERISA.--
(1) Part 5 of subtitle B of title I of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1131 et
seq.) is amended by adding at the end the following new
section:
``SEC. 518. AUTHORITY TO POSTPONE CERTAIN DEADLINES BY REASON
OF PRESIDENTIALLY DECLARED DISASTER OR
TERRORISTIC OR MILITARY ACTIONS.
``In the case of a pension or other employee benefit plan,
or any sponsor, administrator, participant, beneficiary, or
other person with respect to such plan, affected by a
Presidentially declared disaster (as defined in section
1033(h)(3) of the Internal Revenue Code of 1986) or a
terroristic or military action (as defined in section
692(c)(2) of such Code), the Secretary may, notwithstanding
any other provision of law, prescribe, by notice or
otherwise, a period of up to one year which may be
disregarded in determining the date by which any action is
required or permitted to be completed under this Act. No plan
shall be treated as failing to be operated in accordance with
the terms of the plan solely as the result of disregarding
any period by reason of the preceding sentence.''.
(2) Section 4002 of Employee Retirement Income Security Act
of 1974 (29 U.S.C. 1302) is amended by adding at the end the
following new subsection:
``(i) Special Rules Regarding Disasters, Etc.--In the case
of a pension or other employee benefit plan, or any sponsor,
administrator, participant, beneficiary, or other person with
respect to such plan, affected by a Presidentially declared
disaster (as defined in section 1033(h)(3) of the Internal
Revenue Code of 1986) or a terroristic or military action (as
defined in section 692(c)(2) of such Code), the corporation
may, notwithstanding any other provision of law, prescribe,
by notice or otherwise, a period of up to one year which may
be disregarded in determining the date by which any action is
required or permitted to be completed under this Act. No plan
shall be treated as failing to be operated in accordance with
the terms of the plan solely as the result of disregarding
any period by reason of the preceding sentence.''.
(d) Additional Conforming Amendments.--
(1) Section 6404 is amended--
(A) by striking subsection (h),
(B) by redesignating subsection (i) as subsection (h), and
(C) by adding at the end the following new subsection:
``(i) Cross Reference.--
``For authority of the Secretary to abate certain amounts by reason
of Presidentially declared disaster or terroristic or military action,
see section 7508A.''.
(2) Section 6081(c) is amended to read as follows:
``(c) Cross References.--
``For time for performing certain acts postponed by reason of war,
see section 7508, and by reason of Presidentially declared disaster or
terroristic or military action, see section 7508A.''.
(3) Section 6161(d) is amended by adding at the end the
following new paragraph:
``(3) Postponement of certain acts.--
``For time for performing certain acts postponed by reason of war,
see section 7508, and by reason of Presidentially declared disaster or
terroristic or military action, see section 7508A.''.
(d) Clerical Amendments.--
(1) The item relating to section 7508A in the table of
sections for chapter 77 is amended to read as follows:
``Sec. 7508A. Authority to postpone certain deadlines by reason of
Presidentially declared disaster or terroristic or
military actions.''.
(2) The table of contents for the Employee Retirement
Income Security Act of 1974 is amended by inserting after the
item relating to section 517 the following new item:
``Sec. 518. Authority to postpone certain deadlines by reason of
Presidentially declared disaster or terroristic or
military actions.''.
(e) Effective Date.--The amendments made by this section
shall apply to disasters and terroristic or military actions
occurring on or after September 11, 2001, with respect to any
action of the Secretary of the Treasury, the Secretary of
Labor, or the Pension Benefit Guaranty Corporation occurring
on or after the date of the enactment of this Act.
SEC. 313. INTERNAL REVENUE SERVICE DISASTER RESPONSE TEAM.
(a) In General.--Section 7508A, as amended by section
202(a), is amended by adding at the end the following new
subsection:
``(d) Duties of Disaster Response Team.--The Secretary
shall establish as a permanent office in the national office
of the Internal Revenue Service a disaster response team
which, in coordination with the Federal Emergency Management
Agency, shall assist taxpayers in clarifying and resolving
Federal tax matters associated with or resulting from any
Presidentially declared disaster (as defined in section
1033(h)(3)) or a terroristic or military action (as defined
in section 692(c)(2)).''.
(b) Effective Date.--The amendment made by this section
shall take effect on the date of the enactment of this Act.
SEC. 314. APPLICATION OF CERTAIN PROVISIONS TO TERRORISTIC OR
MILITARY ACTIONS.
(a) Exclusion for Death Benefits.--Section 101 (relating to
certain death benefits) is amended by adding at the end the
following new subsection:
``(i) Certain Employee Death Benefits Payable by Reason of
Death From Terroristic or Military Actions.--
``(1) In general.--Gross income does not include amounts
which are received (whether in a single sum or otherwise) if
such amounts are paid by an employer by reason of the death
of an employee incurred as a result of a terroristic or
military action (as defined in section 692(c)(2)).
``(2) No relief for certain individuals.--Paragraph (1)
shall not apply with respect to any individual identified by
the Attorney General to have been a participant or
conspirator in a terroristic action (as so defined), or a
representative of such individual.
``(3) Treatment of self-employed individuals.--For purposes
of this subsection, the term `employee' includes a self-
employed person (as described in section 401(c)(1)).''.
(b) Disability Income.--Section 104(a)(5) (relating to
compensation for injuries or sickness) is amended by striking
``a violent attack'' and all that follows through the period
and inserting ``a terroristic or military action (as defined
in section 692(c)(2)).''.
(c) Exemption From Income Tax for Certain Military or
Civilian Employees.--Section 692(c) is amended--
(1) by striking ``outside the United States'' in paragraph
(1), and
(2) by striking ``Sustained Overseas'' in the heading.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years ending on or after September 11,
2001.
SEC. 315. CLARIFICATION OF DUE DATE FOR AIRLINE EXCISE TAX
DEPOSITS.
(a) In General.--Paragraph (3) of section 301(a) of the Air
Transportation Safety and System Stabilization Act (Public
Law 107-42) is amended to read as follows:
[[Page H10881]]
``(3) Airline-related deposit.--For purposes of this
subsection, the term `airline-related deposit' means any
deposit of taxes imposed by subchapter C of chapter 33 of
such Code (relating to transportation by air).''.
(b) Effective Date.--The amendment made by this section
shall take effect as if included in section 301 of the Air
Transportation Safety and System Stabilization Act (Public
Law 107-42).
SEC. 316. COORDINATION WITH AIR TRANSPORTATION SAFETY AND
SYSTEM STABILIZATION ACT.
No reduction in Federal tax liability by reason of any
provision of, or amendment made by, this Act shall be
considered as being received from a collateral source for
purposes of section 402(4) of the Air Transportation Safety
and System Stabilization Act (Public Law 107-42).
Subtitle C--Disclosure of Tax Information in Terrorism and National
Security Investigations
SEC. 321. DISCLOSURE OF TAX INFORMATION IN TERRORISM AND
NATIONAL SECURITY INVESTIGATIONS.
(a) Disclosure Without a Request of Information Relating to
Terrorist Activities, Etc.--Paragraph (3) of section 6103(i)
(relating to disclosure of return information to apprise
appropriate officials of criminal activities or emergency
circumstances) is amended by adding at the end the following
new subparagraph:
``(C) Terrorist activities, etc.--
``(i) In general.--Except as provided in paragraph (6), the
Secretary may disclose in writing return information (other
than taxpayer return information) that may be related to a
terrorist incident, threat, or activity to the extent
necessary to apprise the head of the appropriate Federal law
enforcement agency responsible for investigating or
responding to such terrorist incident, threat, or activity.
The head of the agency may disclose such return information
to officers and employees of such agency to the extent
necessary to investigate or respond to such terrorist
incident, threat, or activity.
``(ii) Disclosure to the department of justice.--Returns
and taxpayer return information may also be disclosed to the
Attorney General under clause (i) to the extent necessary
for, and solely for use in preparing, an application under
paragraph (7)(D).
``(iii) Taxpayer identity.--For purposes of this
subparagraph, a taxpayer's identity shall not be treated as
taxpayer return information.
``(iv) Termination.--No disclosure may be made under this
subparagraph after December 31, 2003.''.
(b) Disclosure Upon Request of Information Relating to
Terrorist Activities, Etc.--Subsection (i) of section 6103
(relating to disclosure to Federal officers or employees for
administration of Federal laws not relating to tax
administration) is amended by redesignating paragraph (7) as
paragraph (8) and by inserting after paragraph (6) the
following new paragraph:
``(7) Disclosure upon request of information relating to
terrorist activities, etc.--
``(A) Disclosure to law enforcement agencies.--
``(i) In general.--Except as provided in paragraph (6),
upon receipt by the Secretary of a written request which
meets the requirements of clause (iii), the Secretary may
disclose return information (other than taxpayer return
information) to officers and employees of any Federal law
enforcement agency who are personally and directly engaged in
the response to or investigation of any terrorist incident,
threat, or activity.
``(ii) Disclosure to state and local law enforcement
agencies.--The head of any Federal law enforcement agency may
disclose return information obtained under clause (i) to
officers and employees of any State or local law enforcement
agency but only if such agency is part of a team with the
Federal law enforcement agency in such response or
investigation and such information is disclosed only to
officers and employees who are personally and directly
engaged in such response or investigation.
``(iii) Requirements.--A request meets the requirements of
this clause if--
``(I) the request is made by the head of any Federal law
enforcement agency (or his delegate) involved in the response
to or investigation of any terrorist incident, threat, or
activity, and
``(II) the request sets forth the specific reason or
reasons why such disclosure may be relevant to a terrorist
incident, threat, or activity.
``(iv) Limitation on use of information.--Information
disclosed under this subparagraph shall be solely for the use
of the officers and employees to whom such information is
disclosed in such response or investigation.
``(B) Disclosure to intelligence agencies.--
``(i) In general.--Except as provided in paragraph (6),
upon receipt by the Secretary of a written request which
meets the requirements of clause (ii), the Secretary may
disclose return information (other than taxpayer return
information) to those officers and employees of the
Department of Justice, the Department of the Treasury, and
other Federal intelligence agencies who are personally and
directly engaged in the collection or analysis of
intelligence and counterintelligence information or
investigation concerning any terrorist incident, threat, or
activity. For purposes of the preceding sentence, the
information disclosed under the preceding sentence shall be
solely for the use of such officers and employees in such
investigation, collection, or analysis.
``(ii) Requirements.--A request meets the requirements of
this subparagraph if the request--
``(I) is made by an individual described in clause (iii),
and
``(II) sets forth the specific reason or reasons why such
disclosure may be relevant to a terrorist incident, threat,
or activity.
``(iii) Requesting individuals.--An individual described in
this subparagraph is an individual--
``(I) who is an officer or employee of the Department of
Justice or the Department of the Treasury who is appointed by
the President with the advice and consent of the Senate or
who is the Director of the United States Secret Service, and
``(II) who is responsible for the collection and analysis
of intelligence and counterintelligence information
concerning any terrorist incident, threat, or activity.
``(iv) Taxpayer identity.--For purposes of this
subparagraph, a taxpayer's identity shall not be treated as
taxpayer return information.
``(C) Disclosure under ex parte orders.--
``(i) In general.--Except as provided in paragraph (6), any
return or return information with respect to any specified
taxable period or periods shall, pursuant to and upon the
grant of an ex parte order by a Federal district court judge
or magistrate under clause (ii), be open (but only to the
extent necessary as provided in such order) to inspection by,
or disclosure to, officers and employees of any Federal law
enforcement agency or Federal intelligence agency who are
personally and directly engaged in any investigation,
response to, or analysis of intelligence and
counterintelligence information concerning any terrorist
incident, threat, or activity. Return or return information
opened pursuant to the preceding sentence shall be solely for
the use of such officers and employees in the investigation,
response, or analysis, and in any judicial, administrative,
or grand jury proceedings, pertaining to such terrorist
incident, threat, or activity.
``(ii) Application for order.--The Attorney General, the
Deputy Attorney General, the Associate Attorney General, any
Assistant Attorney General, or any United States attorney may
authorize an application to a Federal district court judge or
magistrate for the order referred to in clause (i). Upon such
application, such judge or magistrate may grant such order if
he determines on the basis of the facts submitted by the
applicant that--
``(I) there is reasonable cause to believe, based upon
information believed to be reliable, that the return or
return information may be relevant to a matter relating to
such terrorist incident, threat, or activity, and
``(II) the return or return information is sought
exclusively for use in a Federal investigation, analysis, or
proceeding concerning any terrorist incident, threat, or
activity.
``(D) Special rule for ex parte disclosure by the irs.--
``(i) In general.--Except as provided in paragraph (6), the
Secretary may authorize an application to a Federal district
court judge or magistrate for the order referred to in
subparagraph (C)(i). Upon such application, such judge or
magistrate may grant such order if he determines on the basis
of the facts submitted by the applicant that the requirements
of subparagraph (C)(ii)(I) are met.
``(ii) Limitation on use of information.--Information
disclosed under clause (i)--
``(I) may be disclosed only to the extent necessary to
apprise the head of the appropriate Federal law enforcement
agency responsible for investigating or responding to a
terrorist incident, threat, or activity, and
``(II) shall be solely for use in a Federal investigation,
analysis, or proceeding concerning any terrorist incident,
threat, or activity.
The head of such Federal agency may disclose such information
to officers and employees of such agency to the extent
necessary to investigate or respond to such terrorist
incident, threat, or activity.
``(E) Termination.--No disclosure may be made under this
paragraph after December 31, 2003.''.
(c) Conforming Amendments.--
(1) Section 6103(a)(2) is amended by inserting ``any local
law enforcement agency receiving information under subsection
(i)(7)(A),'' after ``State,''.
(2) Section 6103(b) is amended by adding at the end the
following new paragraph:
``(11) Terrorist incident, threat, or activity.--The term
`terrorist incident, threat, or activity' means an incident,
threat, or activity involving an act of domestic terrorism
(as defined in section 2331(5) of title 18, United States
Code) or international terrorism (as defined in section
2331(1) of such title).''.
(3) The heading of section 6103(i)(3) is amended by
inserting ``or terrorist'' after ``criminal''.
(4) Paragraph (4) of section 6103(i) is amended--
(A) in subparagraph (A) by inserting ``or (7)(C)'' after
``paragraph (1)'', and
(B) in subparagraph (B) by striking ``or (3)(A)'' and
inserting ``(3)(A) or (C), or (7)''.
(5) Paragraph (6) of section 6103(i) is amended--
[[Page H10882]]
(A) by striking ``(3)(A)'' and inserting ``(3)(A) or (C)'',
and
(B) by striking ``or (7)'' and inserting ``(7), or (8)''.
(6) Section 6103(p)(3) is amended--
(A) in subparagraph (A) by striking ``(7)(A)(ii)'' and
inserting ``(8)(A)(ii)'', and
(B) in subparagraph (C) by striking ``(i)(3)(B)(i)'' and
inserting ``(i)(3)(B)(i) or (7)(A)(ii)''.
(7) Section 6103(p)(4) is amended--
(A) in the matter preceding subparagraph (A)--
(i) by striking ``or (5),'' the first place it appears and
inserting ``(5), or (7),'', and
(ii) by striking ``(i)(3)(B)(i),'' and inserting
``(i)(3)(B)(i) or (7)(A)(ii),'', and
(B) in subparagraph (F)(ii) by striking ``or (5),'' the
first place it appears and inserting ``(5) or (7),''.
(8) Section 6103(p)(6)(B)(i) is amended by striking
``(i)(7)(A)(ii)'' and inserting ``(i)(8)(A)(ii)''.
(9) Section 6105(b) is amended--
(A) by striking ``or'' at the end of paragraph (2),
(B) by striking ``paragraphs (1) or (2)'' in paragraph (3)
and inserting ``paragraph (1), (2), or (3)'',
(C) by redesignating paragraph (3) as paragraph (4), and
(D) by inserting after paragraph (2) the following new
paragraph:
``(3) to the disclosure of tax convention information on
the same terms as return information may be disclosed under
paragraph (3)(C) or (7) of section 6103(i), except that in
the case of tax convention information provided by a foreign
government, no disclosure may be made under this paragraph
without the written consent of the foreign government, or''.
(10) Section 7213(a)(2) is amended by striking
``(i)(3)(B)(i),'' and inserting ``(i)(3)(B)(i) or
(7)(A)(ii),''.
(d) Effective Date.--The amendments made by this section
shall apply to disclosures made on or after the date of the
enactment of this Act.
TITLE IV--NEW YORK RECOVERY FROM TERRORISM
SEC. 401. EXPANSION OF WORK OPPORTUNITY TAX CREDIT TARGETED
CATEGORIES TO INCLUDE CERTAIN EMPLOYEES IN NEW
YORK CITY.
(a) In General.--For purposes of section 51 of the Internal
Revenue Code of 1986 (relating to work opportunity credit), a
New York Recovery Zone business employee shall be treated as
a member of a targeted group.
(b) New York Recovery Zone Business Employee.--For purposes
of this section--
(1) In general.--The term ``New York Recovery Zone business
employee'' means, with respect to the period beginning after
September 10, 2001, and ending before January 1, 2005, any
employee of a New York Recovery Zone business if--
(A) substantially all the services performed during such
period by such employee for such business are performed in a
trade or business of such business located in an area
described in paragraph (2), and
(B) with respect to any employee of such business described
in paragraph (2)(B), such employee is certified by the New
York State Department of Labor as not exceeding, when added
to all other employees previously certified with respect to
such period as New York Recovery Zone business employees with
respect to such business, the number of employees of such
business on September 11, 2001, in the New York Recovery
Zone.
(2) New york recovery zone business.--The term ``New York
Recovery Zone business'' means any business establishment
which is--
(A) located in the New York Recovery Zone, or
(B) located in the City of New York, New York, outside the
New York Recovery Zone, as the result of the destruction or
damage of such establishment by the September 11, 2001,
terrorist attack.
(3) New york recovery zone.--The term ``New York Recovery
Zone'' means the area located on or south of Canal Street,
East Broadway (east of its intersection with Canal Street),
or Grand Street (east of its intersection with East Broadway)
in the Borough of Manhattan in the City of New York, New
York.
(4) Special rules for determining amount of credit.--For
purposes of applying subpart E of part IV of subchapter B of
chapter 1 of the Internal Revenue Code of 1986 to wages paid
or incurred to any New York Recovery Zone business employee--
(A) section 51(a) of such Code shall be applied by
substituting ``qualified wages'' for ``qualified first-year
wages'',
(B) section 51(d)(12)(A)(i) of such Code shall be applied
to the certification of individuals employed by a New York
Recovery Zone business before April 1, 2002, by substituting
``on or before May 1, 2002'' for ``on or before the day on
which such individual begins work for the employer'',
(C) subsections (c)(4) and (i)(2) of section 51 of such
Code shall not apply, and
(D) in determining qualified wages, the following shall
apply in lieu of section 51(b) of such Code:
(i) Qualified wages.--The term ``qualified wages'' means
the wages paid or incurred by the employer for work performed
during the period beginning on September 11, 2001, and ending
on December 31, 2004, to individuals who are New York
Recovery Zone business employees of such employer.
(ii) Only first $6,000 of wages per taxable year taken into
account.--The amount of the qualified wages which may be
taken into account with respect to any individual shall not
exceed $6,000 per taxable year of the employer.
(c) Credit Allowed Against Regular and Minimum Tax.--
(1) In general.--Subsection (c) of section 38 (relating to
limitation based on amount of tax) is amended by
redesignating paragraph (3) as paragraph (4) and by inserting
after paragraph (2) the following new paragraph:
``(3) Special rules for new york recovery zone business
employee credit.--
``(A) In general.--In the case of the New York Recovery
Zone business employee credit--
``(i) this section and section 39 shall be applied
separately with respect to such credit, and
``(ii) in applying paragraph (1) to such credit--
``(I) the tentative minimum tax shall be treated as being
zero, and
``(II) the limitation under paragraph (1) (as modified by
subclause (I)) shall be reduced by the credit allowed under
subsection (a) for the taxable year (other than the New York
Recovery Zone business employee credit).
``(B) New york recovery zone business employee credit.--For
purposes of this subsection, the term `New York Recovery Zone
business employee credit' means the portion of work
opportunity credit under section 51 determined under section
401 of the Fiscal Stimulus and Worker Relief Act of 2001.''.
(2) Conforming amendment.--Subclause (II) of section
38(c)(2)(A)(ii) is amended by inserting ``or the New York
Recovery Zone business employee credit'' after ``employment
credit''.
(3) Effective date.--The amendments made by this subsection
shall apply to taxable years ending after September 11, 2001.
SEC. 402. TAX-EXEMPT PRIVATE ACTIVITY BONDS FOR REBUILDING
PORTION OF NEW YORK CITY DAMAGED IN THE
SEPTEMBER 11, 2001, TERRORIST ATTACK.
(a) Treatment as Qualified Bonds.--For purposes of the
Internal Revenue Code of 1986, any qualified NYC recovery
bond shall be treated as an exempt facility bond under
section 141(e) of such Code.
(b) Qualified NYC Recovery Bond.--For purposes of this
section, the term ``qualified NYC recovery bond'' means any
bond which--
(1) is issued by the State of New York or any political
subdivision thereof (or any agency, instrumentality or
constituted authority on behalf thereof), and
(2) meets the requirements of subsections (c) through (f).
(c) Designation Requirements.--A bond meets the
requirements of this subsection if it is issued as part of an
issue designated as a qualified NYC recovery bond by the
Mayor of the City of New York, New York, or an individual
specifically appointed to make such designation.
(d) Issuance and Volume Requirements.--
(1) In general.--Except as provided in paragraph (3), a
bond issued as part of an issue meets the requirements of
this subsection if such bond is issued during 2002 (or during
the period elected under paragraph (2)) and the aggregate
face amount of the bonds issued pursuant to such issue, when
added to the aggregate face amount of qualified NYC recovery
bonds previously issued, does not exceed $12,500,000,000.
(2) Elective carryforward of unused limitation.--If the
volume cap under paragraph (1) exceeds the aggregate amount
of qualified NYC recovery bonds issued during 2002, the
issuing authority under subsection (b) may elect to carry
forward such excess volume cap for an additional 3-year
period under rules similar to the rules of section 146(f) of
the Internal Revenue Code of 1986 (other than paragraph (2)
thereof).
(3) Certain current refundings not counted.--For purposes
of paragraph (1), there shall not be taken into account any
current refunding bond the proceeds of which are used to
refund any bond described in paragraph (1) to the extent the
face amount of such current refunding bond does not exceed
the outstanding face amount of the refunded bond.
(e) Qualified Project Requirements.--
(1) In general.--A bond meets the requirements of this
subsection if it is issued as part of an issue at least 95
percent of the net proceeds of which are to be used for
qualified project costs.
(2) Qualified project costs.--For purposes of this
subsection--
(A) In general.--The term ``qualified project costs''
means--
(i) with respect to a qualified project described in
paragraph (3)(A)(i), the costs of acquisition, construction,
reconstruction, and renovation of commercial real property
and residential rental real property, including--
(I) buildings and their structural components,
(II) fixed tenant improvements, and
(III) public utility property, and
(ii) with respect to a qualified project described in
paragraph (3)(A)(ii), the costs of acquisition, construction,
reconstruction, and renovation of commercial real property,
including--
(I) buildings and their structural components, and
(II) fixed tenant improvements.
(B) Limitations.--
(i) Residential rental real property.--Such term shall not
include costs with respect to residential rental real
property to
[[Page H10883]]
the extent such costs for all such property exceed 20 percent
of the aggregate face amount of the bonds issued under this
section.
(ii) Retail sales property.--Such term shall not include
costs with respect to property used for retail sales of
tangible property and functionally related and subordinate
property to the extent such costs for all such property
exceeds 10 percent of the aggregate face amount of the bonds
issued under this section.
(iii) Movable fixtures and equipment.--Such term shall not
include costs with respect to movable fixtures and equipment.
(3) Qualified projects.--For purposes of this subsection--
(A) In general.--The term ``qualified project'' means any
project--
(i) located within the New York Recovery Zone, or
(ii) located within the City of New York, New York, but
outside of the New York Recovery Zone, but only if--
(I) such project consists of at least 100,000 square feet
of usable office or other commercial space located in a
single building or multiple adjacent buildings, and
(II) the aggregate face amount of the bonds issued to
finance such project, when added to the aggregate face amount
of all bonds issued to finance all other projects described
in this clause, does not exceed $7,000,000,000.
(B) New york recovery zone.--The term ``New York Recovery
Zone'' means the area located on or south of Canal Street,
East Broadway (east of its intersection with Canal Street),
or Grand Street (east of its intersection with East Broadway)
in the Borough of Manhattan in the City of New York, New
York.
(f) General Requirements.--A bond meets the requirements of
this subsection if it is issued as part of an issue which
meets the requirements of part IV of subchapter B of chapter
1 of the Internal Revenue Code of 1986 applicable to an
exempt facility bond, except as follows:
(1) Sections 142(d) and 150(b)(2) (relating to qualified
residential rental project), and section 146 (relating to
volume cap) of such Code shall not apply to bonds issued
under this section.
(2) The application of section 147(c) of such Code
(relating to limitation on use for land acquisition) shall be
determined by reference to the aggregate authorized face
amount of all bonds issued under this section rather than the
net proceeds of each issue.
(3) Section 147(d) of such Code (relating to acquisition of
existing property not permitted) shall be applied by
substituting ``50 percent'' for ``15 percent'' each place it
appears.
(4) Section 148(f)(4)(C) of such Code (relating to
exception from rebate for certain proceeds to be used to
finance construction expenditures) shall apply to
construction proceeds of bonds issued under this section.
(5) Rules similar to the rules of section 143(a)(2)(A)(iv)
of such Code (relating to use of loan repayments) shall apply
to bonds issued under this section.
(g) Bond Interest not an AMT Preference Item.--For purposes
of section 57(a)(5) of the Internal Revenue Code of 1986, a
qualified NYC recovery bond shall not be treated as a
specified private activity bond.
(h) Separate Issue Treatment of Portions of an Issue.--This
section shall not apply to the portion of the proceeds of an
issue which (if issued as a separate issue) would be treated
as a qualified bond or as a bond that is not a private
activity bond (determined without regard to subsection (a)),
if the issuer elects to so treat such portion.
(i) Net Proceeds.--For purposes of this section, the term
``net proceeds'' has the meaning given such term by section
150(a)(3) of the Internal Revenue Code of 1986.
(j) Interest on Debt Used To Purchase or Carry Qualified
NYC Recovery Bonds.--
(1) In general.--Clause (i) of section 265(b)(3)(B)
(defining qualified tax-exempt obligation) is amended by
adding at the end the following new flush sentence:
``Such term includes a tax-exempt obligation issued pursuant
to section 402 of the Fiscal Stimulus and Worker Relief Act
of 2001.''
(2) Refundings.--Subparagraph (D) of section 265(b)(3) is
by adding at the end the following new clause:
``(iv) Refundings of certain obligations.--In the case of a
refunding (or a series of refundings) of a qualified tax-
exempt obligation that is an obligation issued pursuant to
section 402 of the Fiscal Stimulus and Worker Relief Act of
2001, the refunding obligation shall be treated as a
qualified tax-exempt obligation if the refunding obligation
meets the requirements of such section.''.
(2) Effective date.--The amendments made by this subsection
shall apply to taxable years ending on or after the date of
the enactment of this Act.
SEC. 403. ADDITIONAL ADVANCE REFUNDING PERMITTED OF CERTAIN
BONDS.
Paragraph (3) of section 149(d) of the Internal Revenue
Code of 1986 shall not apply to the first advance refunding
after the date of the enactment of this Act of any issue if--
(1) the original bond was issued by--
(A) the City of New York,
(B) the Port Authority of New York and New Jersey,
(C) the Metropolitan Transit Authority of the City of New
York,
(D) the New York City Municipal Water Authority, or
(E) any hospital which is located in the City of New York,
described in section 501(c)(3) of such Code, and exempt from
tax under section 501(a) of such Code,
(2) no bond (issued as part of the refunding issue) is
issued to advance refund a private activity bond (other than
a qualified hospital bond which is a qualified 501(c)(3)
bond, as such terms are defined in section 145 of such Code),
and
(3) other than the bonds being refunded by such refunding
issue, the original bonds and all prior refundings of such
bonds have been redeemed as of the date of the enactment of
this Act.
The preceding sentence shall apply only if the refunding
bonds meet the requirements of clauses (iii), (iv), and (v)
of section 149(d)(3)(A) of such Code.
SEC. 404. GAIN OR LOSS FROM PROPERTY DAMAGED OR DESTROYED IN
NEW YORK RECOVERY ZONE.
(a) General Rule.--For purposes of the Internal Revenue
Code of 1986, if a taxpayer elects the application of this
section with respect to any eligible property, then any gain
or loss on the disposition of the property shall be
determined without regard to any compensation (by insurance
or otherwise) received by the taxpayer for damages sustained
to the property as a result of the terrorist attacks
occurring on September 11, 2001. Such election shall be made
at such time and in such manner as the Secretary of the
Treasury may prescribe, and, once made, is irrevocable.
(b) Limitation Based on Purchase of Replacement Property.--
(1) In general.--Subsection (a) shall apply to compensation
received with respect to eligible property only to the extent
of the cost of any qualified replacement property purchased
by the taxpayer.
(2) Allocation.--If the aggregate compensation received by
a taxpayer with respect to all eligible property exceeds the
aggregate cost of all qualified replacement property
purchased by the taxpayer, such cost shall be allocated to
such eligible property in accordance with rules prescribed by
the Secretary.
(3) Special rule for consolidated groups.--For purposes of
paragraph (1), an affiliated group filing a consolidated
return may elect to treat any qualified replacement property
purchased by a member of the group as purchased by another
member of the group.
(c) Eligible Property.--For purposes of this section, the
term ``eligible property'' means any tangible property--
(1) which is section 1245 property (as defined in section
1245(a)(3) of the Internal Revenue Code of 1986) or qualified
leasehold improvement property (as defined in section
168(k)(3) of such Code),
(2) substantially all of the use of which as of September
11, 2001, was in a business establishment of the taxpayer
located in the New York Recovery Zone, and
(3) which was damaged or destroyed in the terrorist attacks
of September 11, 2001.
(d) Qualified Replacement Property.--For purposes of this
section--
(1) In general.--The term ``qualified replacement
property'' means tangible property--
(A) which is described in subsection (c)(1),
(B) which is purchased by the taxpayer on or after
September 11, 2001, and placed in service in the City of New
York, New York, before January 1, 2007,
(C) the original use of which in such city begins with the
taxpayer, and
(D) substantially all of the use of which is reasonably
expected to be in connection with a business establishment of
the taxpayer located in such city.
(2) Recapture.--The Secretary shall, by regulations,
provide for the recapture of any Federal tax benefit provided
by this section in cases where a taxpayer ceases to use
property as qualified replacement property and such recapture
is necessary to prevent the avoidance of the purposes of this
section.
(e) Coordination With Other Provisions of Code.--For
purposes of the Internal Revenue Code of 1986--
(1) Special rule for treatment of unrecognized gain in
eligible property.--Sections 1245 and 1250 of such Code shall
not apply to any gain on the disposition of eligible property
not recognized by reason of this section.
(2) Loss election not to apply to eligible property.--If a
taxpayer elects the application of this section with respect
to any eligible property, the taxpayer may not make an
election under section 165(i) of such Code with respect to
any loss attributable to the property.
(3) Basis adjustments of qualified replacement property.--
(A) In general.--The basis of any qualified replacement
property shall be reduced by the amount of any compensation
disregarded by reason of subsection (a).
(B) Special rules for recapture.--For purposes of sections
1245 and 1250 of such Code, any reduction under subparagraph
(A) shall be treated as a deduction allowed for depreciation,
except that for purposes of section 1250(b) of such Code, the
determination of what would have been the depreciation
adjustments under the straight line method shall be made as
if there had been no reduction under subparagraph (A).
(4) Special rules for applying section 1033.--For purposes
of applying section 1033 of such Code to converted property
which is eligible property with respect to which an election
under subsection (a) has been made--
(A) the amount realized from the eligible property shall
not include any compensation
[[Page H10884]]
received by the taxpayer which is disregarded by reason of
subsection (a), and
(B) any qualified replacement property shall be disregarded
in determining whether property was acquired for the purposes
of replacing the converted property.
(f) Other Definitions and Rules.--For purposes of this
section--
(1) New york recovery zone.--The term ``New York Recovery
Zone'' means the area located on or south of Canal Street,
East Broadway (east of its intersection with Canal Street),
or Grand Street (east of its intersection with East Broadway)
in the Borough of Manhattan in the City of New York, New
York.
(2) Time for assessment.--Rules similar to the rules of
subparagraphs (C) and (D) of section 1033(a)(2) of such Code
shall apply for purposes of this section.
(3) Related party limitation.--Section 1033(i) of such Code
shall apply for purposes of this section.
SEC. 405. CREDIT FOR INDIVIDUALS RESIDING IN LOWER MANHATTAN.
(a) In General.--Subpart A of part IV of subchapter A of
chapter 1 (relating to nonrefundable personal credits) is
amended by inserting after section 25B the following:
``SEC. 25C. CREDIT FOR RESIDENTS OF LOWER MANHATTAN.
``(a) Allowance of Credit.--In the case of an individual
who is a qualified resident with respect to the taxable year,
there shall be allowed as a credit against the tax imposed by
this chapter for the taxable year an amount equal to $5,000.
``(b) Limitations.--
``(1) Limitation based on adjusted gross income.--
``(A) In general.--The amount of the credit allowed under
subsection (a) shall be reduced (but not below zero) by $50
for each $1,000 (or fraction thereof) by which the taxpayer's
modified adjusted gross income exceeds $150,000.
``(B) Modified adjusted gross income.--For purposes of
subparagraph (A), the term `modified adjusted gross income'
means adjusted gross income determined without regard to
sections 911, 931, or 933.
``(2) Maximum credit per residence and per qualified
resident.--
``(A) Per residence.--As provided by the Secretary, the
credit under subsection (a) shall not be allowed with respect
to more than 1 individual with respect to a principal
residence for the taxable year.
``(B) Per qualified resident.--The aggregate credit allowed
under subsection (a) with respect to any individual for all
taxable years shall not exceed $5,000 and no such credit
shall be allowed for a taxable year if the credit was so
allowed for a preceding taxable year.
``(c) Qualified Resident.--For purposes of this section--
``(1) In general.--The term `qualified resident' means an
individual who--
``(A) maintains a principal residence--
``(i) which is located on or south of Canal Street, East
Broadway (east of its intersection with Canal Street), or
Grand Street (east of its intersection with East Broadway) in
the Borough of Manhattan in the City of New York, New York,
and
``(ii) for at least 6 consecutive months during calendar
year 2002 or 2003,
``(B) makes more than half of the aggregate rental,
mortgage, or any similar payment with respect to the
residence during the period described in subparagraph
(A)(ii), and
``(C) is certified under paragraph (5).
``(2) Multiple residents agreement.--For purposes of
paragraph (1)(B), an individual shall be treated as making
more than half of the aggregate rental, mortgage, or similar
payments for the period with respect to the residence if--
``(A) no one person with respect to the period makes over
half of such payments,
``(B) over half of such aggregate payments are made by
persons each of whom, but for the fact that such person did
not make over half of such payments, would have been a
qualified resident with respect to the residence,
``(C) the taxpayer contributed over 10 percent of such
payments, and
``(D) each person described in subparagraph (B) (other than
the taxpayer) who contributed over 10 percent of such
payments files a written declaration (in such manner and form
as the Secretary may prescribe) that such person will not
claim a credit with respect to such residence.
``(3) Principal residence.--The term `principal residence'
has the same meaning as when used in section 121, except that
no ownership requirement shall be imposed.
``(4) Year credit allowed.--The credit allowed under
subsection (a) shall be allowed for the taxable year in which
the period described in paragraph (1)(A)(ii) ends.
``(5) Certification.--For purposes of paragraph (1)(C), the
appropriate State or local authority shall--
``(A) certify whether an individual, requesting such
certification, meets the requirements of subparagraphs (A)
and (B) of paragraph (1),
``(B) issue a certification to such individual meeting such
requirements which--
``(i) contains a written statement showing the name and
address of the person making such certification and the phone
number of the information contact for such person, and
``(ii) is furnished on or before March 1 of the year
following the calendar year in which the credit under
subsection (a) is allowed, and
``(C) not certify more than 32,000 individuals in any
calendar year as being qualified residents for purposes of
this section.
``(d) Verification.--No credit shall be allowed under
subsection (a) to a taxpayer unless the taxpayer includes, on
the return of tax for the taxable year--
``(1) proof of the certification received under subsection
(c)(5), and
``(2) such other information as the Secretary determines
necessary.
``(e) Information Reporting.--
``(1) In general.--Any State or local authority which
issues the certification required under subsection (c)(5)
shall make the return described in paragraph (2) (at such
time as the Secretary may prescribe) with respect to each
individual to whom such certification is provided.
``(2) Form and manner of returns.--A return is described in
this subsection if such return--
``(A) is in such form as the Secretary may prescribe, and
``(B) contains--
``(i) the name, address, and TIN of the individual to whom
such certification is provided, and
``(ii) such other information as the Secretary may
reasonably prescribe.''.
(b) Conforming Amendment.--The table of sections for
subpart A of part IV of subchapter A of chapter 1 is amended
by inserting after the item relating to section 25B the
following:
``Sec. 25C. Credit for residents of lower Manhattan.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
TITLE V--FREEZE OF TOP INDIVIDUAL INCOME TAX RATE AND DOMESTIC SECURITY
TRUST FUND
SEC. 501. FREEZE OF TOP INDIVIDUAL INCOME TAX RATE AND
DOMESTIC SECURITY TRUST FUND.
(a) Freeze of Top Individual Income Tax Rate.--Paragraph
(2) of section 1(i) (relating to reductions in rates after
June 30, 2001) is amended--
(1) by striking ``37.6'' and inserting ``38.6'', and
(2) by striking ``35.0'' and inserting ``38.6''.
(b) Domestic Security Trust Fund.--Subchapter A of chapter
98 (relating to trust fund code) is amended by adding at the
end the following new section:
``SEC. 9511. DOMESTIC SECURITY TRUST FUND.
``(a) Creation of Trust Fund.--There is established in the
Treasury of the United States a trust fund to be known as the
`Domestic Security Trust Fund', consisting of such amounts as
may be transferred or credited to the Trust Fund as provided
in this section and section 9602(b).
``(b) Transfers to Fund.--There are hereby transferred from
the General Fund of the Treasury to the Domestic Security
Trust Fund so much of the additional amounts received in the
Treasury by reason of the amendment made by section 501(a) of
the Fiscal Stimulus and Worker Relief Act of 2001 (relating
to freeze in top individual income tax rate) as does not
exceed the sum of--
``(1) the expenditures authorized to be made out of the
funds.
``(2) the amount determined by the Secretary to be
necessary to pay the interest on any repayable advance made
to the Trust Fund.
``(c) Expenditures.--Amounts in the Domestic Security Trust
Fund shall be available, as provided by appropriation Acts,
for purposes of making expenditures for domestic economic
development programs for steel industry loan guarantees to
the extent such expenditures are hereafter authorized by law.
``(d) Repayable Advances.--
``(1) In general.--If amounts in the Trust Fund are not
sufficient for the purposes of subsection (c), the Secretary
shall transfer from the General Fund of the Treasury to the
Trust Fund such additional amounts as may be necessary for
such purposes. Such amounts shall be transferred as repayable
advances.
``(2) Repayment of advances.--
``(A) In general.--Advances made to the Trust Fund shall be
repaid, and interest on such advances shall be paid, to the
General Fund of the Treasury when the Secretary determines
that moneys are available for such purposes in the Trust
Fund.
``(B) Rate of interest.--Interest on advances made to the
Trust Fund shall be at a rate determined by the Secretary of
the Treasury (as of the close of the calendar month preceding
the month in which the advance is made) to be equal to the
current average market yield on outstanding marketable
obligations of the United States with remaining periods to
maturity comparable to the anticipated period during which
the advance will be outstanding and shall be compounded
annually.''.
(c) Clerical Amendment.--The table of sections for
subchapter A of chapter 98 is amended by adding at the end
the following new item:
``Sec. 9511. Domestic security trust fund.''.
(d) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2001.
[[Page H10885]]
TITLE VII--SOCIAL SECURITY HELD HARMLESS
SEC. 701. NO IMPACT ON SOCIAL SECURITY TRUST FUNDS.
(a) In General.--Nothing in this Act (or an amendment made
by this Act) shall be construed to alter or amend title II of
the Social Security Act (or any regulation promulgated under
that Act).
(b) Transfers.--
(1) Estimate of secretary.--The Secretary of the Treasury
shall annually estimate the impact that the enactment of this
Act has on the income and balances of the trust funds
established under section 201 of the Social Security Act (42
U.S.C. 401).
(2) Transfer of funds.--If, under paragraph (1), the
Secretary of the Treasury estimates that the enactment of
this Act has a negative impact on the income and balances of
the trust funds established under section 201 of the Social
Security Act (42 U.S.C. 401), the Secretary shall transfer,
not less frequently than quarterly, from the general revenues
of the Federal Government an amount sufficient so as to
ensure that the income and balances of such trust funds are
not reduced as a result of the enactment of this Act.
SEC. 702. EMERGENCY DESIGNATION.
Congress designates as emergency requirements pursuant to
section 252(e) of the Balanced Budget and Emergency Deficit
Control Act of 1985 the following amounts:
(1) An amount equal to the amount by which revenues are
reduced by this Act below the recommended levels of Federal
revenues for fiscal year 2002, the total of fiscal years 2002
through 2006, and the total of fiscal years 2002 through
2011, provided in the conference report accompanying H. Con.
Res. 83, the concurrent resolution on the budget for fiscal
year 2002.
(2) Amounts equal to the amounts of new budget authority
and outlays provided in this Act in excess of the allocations
under section 302(a) of the Congressional Budget Act of 1974
to the Committee on Finance of the Senate for fiscal year
2002, the total of fiscal years 2002 through 2006, and the
total of fiscal years 2002 through 2011.
Mr. RANGEL (during the reading). Mr. Speaker, I ask unanimous consent
that the motion be considered as read and printed in the Record.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from New York?
There was no objection.
The SPEAKER pro tempore. The gentleman from New York (Mr. Rangel) is
recognized for 5 minutes in support of his motion to recommit.
Mr. RANGEL. Mr. Speaker, I was moved by the remarks of the Speaker. I
do not think anyone tried harder in this House in working with the
minority leader, the gentleman from Missouri (Mr. Gephardt) in trying
to bring a solution to the problem that is before this House.
{time} 0315
I think it is safe to say that the one thing that they tried to do
was to try to bring some resolve to the question of providing health
care to people who are unemployed.
We provided over $70 billion in our substitute for tax incentives,
corporate and individual taxes; and we did this because we seriously
believe that we do have to do certain things in order to create
capital, in order to create investments, in order to allow people to be
able to invest. But we truly believe that we should have had an
opportunity to come before you today and say that the people who are
left out of this bill, or the people who are left to the governors to
do what they have to do, or the people that may be left up to the
Secretary of the Treasury, that we just do not have a provision here
that I can explain or that you can explain to the people who have been
left out.
We know tonight that we had a missed opportunity to give and to take
on this side of the aisle and the other side, on this side of the House
and the other side. We missed that opportunity because certain people
were convinced that the present health delivery system does not work
and they wanted to change it for the future. It is almost unbelievable
how you would not give us an opportunity to share with you our views.
But to hold us in such disrespect that we could not bring it up in
committee; that we did not have a chance to bring it up in conference;
that we could not bring it up on the floor, and yet, as we conclude,
you know that this bill is not going anywhere in the Senate.
As I look and see the distinguished former chairman of the Committee
on the Budget, or maybe the chairman of the former Committee on the
Budget, or maybe the chairman that used to be concerned as to what we
did with the Social Security Trust Fund and the Medicare Trust Fund,
who said we were not going to invade it, who said we would put it in a
lockbox, who said so many things, but at the end of the day, this tax
cut bill is not paid for, as the substitute was and as the motion to
recommit asks you to do.
People have screamed that what we are doing is raising taxes. All we
are saying is that the President did not know when he gave the $1.3
trillion tax cut that we were going to go into a recession. He did not
know that we would be at war. And all we are saying is that as we look
and see and try to bring some balance to the budget, if not now then in
the future, at least have it using the language of people on the
Committee on the Budget and have a set-aside. But we do not have even
that.
So as we plunge into deficit spending, we do it using the payments
that people are making for what? For tax cuts? No. To pay for the war?
No. For health care? No. For unemployment? No. They are using this for
their Social Security. The payroll tax is what is keeping us going, and
we are operating on fumes.
I just want you to know that we want to give to the Speaker the sense
of bipartisanship that we have given since the war has begun. But
partnership means two sides. You first have to talk with people. You
have to get people's views. And somewhere down the line we have to get
back to the idea that things that are important enough for tax policy
and trade policy and unemployment policy and health policy to have
hearings and witnesses and markups, and to bring it to the floor in a
bipartisan way.
We do not have to win. We are in the minority. We can count. But we
demand the respect to be heard, because we do feel a compassionate
concern not only that business be allowed to prosper so it can create
the wealth and the jobs, but those people who are not in the system,
that have been dislocated, they cannot wait until the other body does
something. They should have been taken care of by this Congress at this
time.
I ask you to support the motion to recommit to give us an opportunity
to come back and to put some meat on the bones. Do not leave it to the
Secretary of the Treasury to get us out of this. Do not leave it to the
President. Leave it to the people that have the experience and the
jurisdiction in our committees to do something about it. I hope you
will consider that on the motion to recommit.
Mr. THOMAS. Mr. Speaker, I rise in opposition to the motion to
recommit.
The SPEAKER pro tempore (Mr. Thornberry). The gentleman from
California (Mr. Thomas) is recognized for 5 minutes.
Mr. THOMAS. Mr. Speaker, I am sure that there was significant labor
on the part of my friends to put this package together. The package is,
and all my colleagues should know, to strike all after the enacting
clause and insert the following. The following is a bill. And if you
would take the copy that was provided to me, and as you turn through
the pages you come to a section, and as in the case nowadays, you know
when you send things over faxes that at the top you have a heading and
it tells you where it came from? I may not be completely familiar, but
this says this is from the USWA Legislative Public Affairs. I believe
that is United Steelworkers of America Legislative Public Affairs. So a
portion of this bill, obviously, has been generated through the fax
machine from folks who I do not believe are under the employment of
Congress.
However, most of the debate on my friend's side has been focusing on
page 100 of our bill, and there he refers to the fact that we say that
this new plan that we want to put into effect of providing health
insurance to our colleagues is not there in detail; that what it has is
an enablement to the Secretary of the Treasury to develop the
regulations necessary to carry out the plan. Now, one of the dirty
little secrets inside the bill is they do not have a plan either.
Because currently COBRA is not subsidized, it is paid for by
individuals out of their pocket. They propose to set up a plan which
will subsidize COBRA. They are going to have to create a plan, just
like they accuse us of doing.
And when you turn to page 44, lo and behold, ``not later than 60 days
after the date of enactment of this act, the
[[Page H10886]]
Secretary of the Treasury, in consultation with the Secretary of Labor,
shall establish a program.'' So, in other words, both of us have to
establish programs. But what we have got is one that supports folk on
the kind of insurance they have. If it be COBRA, fine; if it is
something else, fine. What they have is only a plan to set up COBRA.
And if you get your insurance from somewhere else, you are simply left
out.
Now, I will tell my colleagues that I will shorten this and yield
back the balance of my time, because you only have to refer to one more
page in this bill. It happens to be on page 96. It says ``title V:
Freeze of the top individual income tax rate.'' And guess what? They
believe a stimulus is to deny the most entrepreneurial area of the
system, in terms of allowing people to keep marginally a little bit
more of their own wealth. That is what they call stimulus.
I invite my colleagues to support or reject that kind of a program
and ask you to vote ``no'' on the motion to recommit.
Mr. Speaker, I yield back the balance of my time.
Mr. THORNBERRY. Without objection, the previous question is ordered
on the motion to recommit.
There was no objection.
The SPEAKER pro tempore. The question is on the motion to recommit.
The question was taken; and the Speaker pro tempore announced that
the noes appeared to have it.
Mr. RANGEL. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 9 of rule XX, the Chair
will reduce to 5 minutes the minimum time for any electronic vote on
the question of passage.
The vote was taken by electronic device, and there were--yeas 177,
nays 238, not voting 20, as follows:
[Roll No. 508]
YEAS--177
Ackerman
Allen
Andrews
Baca
Baird
Baldacci
Baldwin
Barrett
Becerra
Bentsen
Berkley
Berman
Berry
Bishop
Blagojevich
Blumenauer
Bonior
Borski
Boswell
Boucher
Boyd
Brady (PA)
Brown (FL)
Brown (OH)
Capps
Capuano
Cardin
Carson (IN)
Carson (OK)
Clay
Clayton
Clyburn
Conyers
Costello
Coyne
Cramer
Crowley
Cummings
Davis (CA)
Davis (FL)
Davis (IL)
DeFazio
DeGette
Delahunt
DeLauro
Deutsch
Dingell
Doggett
Doyle
Edwards
Engel
Eshoo
Etheridge
Evans
Farr
Filner
Frank
Frost
Gephardt
Gonzalez
Gordon
Green (TX)
Harman
Hilliard
Hinchey
Hinojosa
Hoeffel
Holden
Holt
Honda
Hoyer
Inslee
Jackson (IL)
Jackson-Lee (TX)
Jefferson
John
Johnson, E. B.
Jones (OH)
Kaptur
Kennedy (RI)
Kildee
Kilpatrick
Kleczka
Kucinich
LaFalce
Lampson
Langevin
Lantos
Larsen (WA)
Larson (CT)
Lee
Levin
Lewis (GA)
Lipinski
Lofgren
Lowey
Lynch
Maloney (CT)
Maloney (NY)
Markey
Mascara
Matheson
Matsui
McCarthy (MO)
McCarthy (NY)
McCollum
McDermott
McGovern
McIntyre
McKinney
McNulty
Meehan
Meeks (NY)
Menendez
Millender-McDonald
Miller, George
Mink
Moore
Moran (VA)
Nadler
Napolitano
Neal
Oberstar
Obey
Olver
Ortiz
Pallone
Pascrell
Pastor
Payne
Pelosi
Phelps
Pomeroy
Price (NC)
Rangel
Reyes
Rivers
Rodriguez
Ross
Rothman
Roybal-Allard
Rush
Sabo
Sanders
Sandlin
Sawyer
Schakowsky
Schiff
Scott
Serrano
Sherman
Shows
Slaughter
Solis
Spratt
Stenholm
Strickland
Stupak
Tanner
Tauscher
Thompson (CA)
Thompson (MS)
Thurman
Tierney
Towns
Turner
Udall (CO)
Udall (NM)
Velazquez
Visclosky
Waters
Watson (CA)
Watt (NC)
Waxman
Weiner
Woolsey
Wynn
NAYS--238
Abercrombie
Aderholt
Akin
Armey
Bachus
Ballenger
Barcia
Barr
Bartlett
Barton
Bass
Bereuter
Biggert
Bilirakis
Blunt
Boehlert
Boehner
Bonilla
Bono
Boozman
Brady (TX)
Brown (SC)
Bryant
Burr
Burton
Buyer
Callahan
Calvert
Camp
Cannon
Cantor
Capito
Castle
Chabot
Chambliss
Coble
Collins
Combest
Condit
Cooksey
Cox
Crane
Crenshaw
Culberson
Cunningham
Davis, Jo Ann
Davis, Tom
Deal
DeLay
DeMint
Diaz-Balart
Dooley
Doolittle
Dreier
Duncan
Dunn
Ehlers
Ehrlich
Emerson
English
Everett
Ferguson
Flake
Fletcher
Foley
Forbes
Fossella
Frelinghuysen
Gallegly
Ganske
Gekas
Gibbons
Gilchrest
Gillmor
Gilman
Goode
Goodlatte
Goss
Graham
Granger
Graves
Green (WI)
Greenwood
Grucci
Gutknecht
Hall (TX)
Hansen
Hart
Hastert
Hastings (WA)
Hayes
Hayworth
Herger
Hill
Hobson
Hoekstra
Hooley
Horn
Hostettler
Houghton
Hulshof
Hunter
Hyde
Isakson
Israel
Issa
Istook
Jenkins
Johnson (CT)
Johnson (IL)
Johnson, Sam
Jones (NC)
Kanjorski
Keller
Kelly
Kennedy (MN)
Kerns
Kind (WI)
King (NY)
Kingston
Kirk
Knollenberg
Kolbe
LaHood
Largent
Latham
LaTourette
Leach
Lewis (CA)
Lewis (KY)
Linder
LoBiondo
Lucas (KY)
Lucas (OK)
Manzullo
McCrery
McHugh
McInnis
McKeon
Mica
Miller, Dan
Miller, Gary
Miller, Jeff
Mollohan
Moran (KS)
Morella
Murtha
Myrick
Nethercutt
Ney
Northup
Norwood
Nussle
Osborne
Ose
Otter
Paul
Pence
Peterson (MN)
Peterson (PA)
Petri
Pickering
Pitts
Platts
Pombo
Portman
Pryce (OH)
Putnam
Quinn
Radanovich
Rahall
Ramstad
Regula
Rehberg
Reynolds
Riley
Roemer
Rogers (KY)
Rogers (MI)
Rohrabacher
Ros-Lehtinen
Roukema
Royce
Ryan (WI)
Ryun (KS)
Sanchez
Saxton
Schaffer
Schrock
Sensenbrenner
Sessions
Shadegg
Shaw
Shays
Sherwood
Shimkus
Shuster
Simmons
Simpson
Skeen
Skelton
Smith (MI)
Smith (NJ)
Smith (TX)
Smith (WA)
Snyder
Souder
Stump
Sununu
Sweeney
Tancredo
Tauzin
Taylor (NC)
Terry
Thomas
Thornberry
Thune
Tiahrt
Tiberi
Toomey
Traficant
Upton
Vitter
Walden
Walsh
Wamp
Watkins (OK)
Watts (OK)
Weldon (FL)
Weldon (PA)
Weller
Whitfield
Wicker
Wilson (NM)
Wilson (SC)
Wolf
Wu
Young (FL)
NOT VOTING--20
Baker
Clement
Cubin
Dicks
Fattah
Ford
Gutierrez
Hall (OH)
Hastings (FL)
Hefley
Hilleary
Luther
Meek (FL)
Owens
Oxley
Stark
Stearns
Taylor (MS)
Wexler
Young (AK)
{time} 0346
Mr. HOOLEY of Oregon and Messrs. REYNOLDS, RAMSTAD, HILL, GILLMOR and
ISRAEL changed their vote from ``yea'' to ``nay.''
Mr. SANDLIN and Mr. RUSH changed their vote from ``nay'' to ``yea.''
So the motion to recommit was rejected.
The result of the vote was announced as above recorded.
The SPEAKER pro tempore (Mr. Thornberry). The question is on the
passage of the bill.
Pursuant to House Resolution 320, the yeas and nays are ordered.
This is a 5-minute vote.
The vote was taken by electronic device, and there were--yeas 224,
nays 193, not voting 18, as follows:
[Roll No. 509]
YEAS--224
Aderholt
Akin
Armey
Bachus
Ballenger
Barr
Bartlett
Barton
Bass
Bereuter
Biggert
Bilirakis
Blunt
Boehlert
Boehner
Bonilla
Bono
Boozman
Brady (TX)
Brown (SC)
Bryant
Burr
Burton
Buyer
Callahan
Calvert
Camp
Cannon
Cantor
Capito
Castle
Chabot
Chambliss
Coble
Collins
Combest
Cooksey
Cox
Cramer
Crane
Crenshaw
Culberson
Cunningham
Davis, Jo Ann
Davis, Tom
Deal
DeLay
DeMint
Diaz-Balart
Doolittle
Dreier
Duncan
Dunn
Ehlers
Ehrlich
Emerson
English
Everett
Ferguson
Flake
Fletcher
Foley
Forbes
Fossella
Frelinghuysen
Gallegly
Ganske
Gekas
Gibbons
Gilchrest
Gillmor
Gilman
Goode
Goodlatte
Goss
Graham
Granger
Graves
Green (WI)
Greenwood
Grucci
Gutknecht
Hall (TX)
Hansen
Harman
Hart
Hastert
Hastings (WA)
Hayes
Hayworth
Herger
Hilleary
Hobson
Hoekstra
Horn
Hostettler
Houghton
Hulshof
Hunter
Hyde
Isakson
Israel
Issa
Istook
Jenkins
John
Johnson (CT)
Johnson (IL)
Johnson, Sam
Jones (NC)
Keller
Kelly
Kennedy (MN)
Kerns
King (NY)
Kingston
Kirk
Knollenberg
Kolbe
LaHood
Largent
Latham
Leach
Lewis (CA)
Lewis (KY)
Linder
Lipinski
LoBiondo
Lucas (KY)
Lucas (OK)
Manzullo
McCrery
McHugh
McInnis
McKeon
Mica
Miller, Dan
Miller, Gary
[[Page H10887]]
Miller, Jeff
Moran (KS)
Myrick
Nethercutt
Ney
Northup
Norwood
Nussle
Osborne
Ose
Otter
Paul
Pence
Peterson (PA)
Petri
Pickering
Pitts
Platts
Pombo
Portman
Pryce (OH)
Putnam
Quinn
Radanovich
Ramstad
Regula
Rehberg
Reynolds
Riley
Rogers (KY)
Rogers (MI)
Rohrabacher
Ros-Lehtinen
Roukema
Royce
Ryan (WI)
Ryun (KS)
Saxton
Schaffer
Schrock
Sensenbrenner
Sessions
Shadegg
Shaw
Shays
Sherwood
Shimkus
Shows
Shuster
Simmons
Simpson
Skeen
Smith (MI)
Smith (NJ)
Smith (TX)
Souder
Stump
Sununu
Sweeney
Tancredo
Tauzin
Taylor (NC)
Terry
Thomas
Thornberry
Thune
Tiahrt
Tiberi
Toomey
Traficant
Upton
Vitter
Walden
Walsh
Wamp
Watkins (OK)
Watts (OK)
Weldon (FL)
Weldon (PA)
Weller
Whitfield
Wicker
Wilson (NM)
Wilson (SC)
Wolf
Young (FL)
NAYS--193
Abercrombie
Ackerman
Allen
Andrews
Baca
Baird
Baldacci
Baldwin
Barcia
Barrett
Becerra
Bentsen
Berkley
Berman
Berry
Bishop
Blagojevich
Blumenauer
Bonior
Borski
Boswell
Boucher
Boyd
Brady (PA)
Brown (FL)
Brown (OH)
Capps
Capuano
Cardin
Carson (IN)
Carson (OK)
Clay
Clayton
Clyburn
Condit
Conyers
Costello
Coyne
Crowley
Cummings
Davis (CA)
Davis (FL)
Davis (IL)
DeFazio
DeGette
Delahunt
DeLauro
Deutsch
Dingell
Doggett
Dooley
Doyle
Edwards
Engel
Eshoo
Etheridge
Evans
Farr
Filner
Frank
Frost
Gephardt
Gonzalez
Gordon
Green (TX)
Gutierrez
Hill
Hilliard
Hinchey
Hinojosa
Hoeffel
Holden
Holt
Honda
Hooley
Hoyer
Inslee
Jackson (IL)
Jackson-Lee (TX)
Jefferson
Johnson, E. B.
Jones (OH)
Kanjorski
Kaptur
Kennedy (RI)
Kildee
Kilpatrick
Kind (WI)
Kleczka
Kucinich
LaFalce
Lampson
Langevin
Lantos
Larsen (WA)
Larson (CT)
LaTourette
Lee
Levin
Lewis (GA)
Lofgren
Lowey
Lynch
Maloney (CT)
Maloney (NY)
Markey
Mascara
Matheson
Matsui
McCarthy (MO)
McCarthy (NY)
McCollum
McDermott
McGovern
McIntyre
McKinney
McNulty
Meehan
Meeks (NY)
Menendez
Millender-McDonald
Miller, George
Mink
Mollohan
Moore
Moran (VA)
Morella
Murtha
Nadler
Napolitano
Neal
Oberstar
Obey
Olver
Ortiz
Pallone
Pascrell
Pastor
Payne
Pelosi
Peterson (MN)
Phelps
Pomeroy
Price (NC)
Rahall
Rangel
Reyes
Rivers
Rodriguez
Roemer
Ross
Rothman
Roybal-Allard
Rush
Sabo
Sanchez
Sanders
Sandlin
Sawyer
Schakowsky
Schiff
Scott
Serrano
Sherman
Skelton
Slaughter
Smith (WA)
Snyder
Solis
Spratt
Stenholm
Strickland
Stupak
Tanner
Tauscher
Thompson (CA)
Thompson (MS)
Thurman
Tierney
Towns
Turner
Udall (CO)
Udall (NM)
Velazquez
Visclosky
Waters
Watson (CA)
Watt (NC)
Waxman
Weiner
Woolsey
Wu
Wynn
NOT VOTING--18
Baker
Clement
Cubin
Dicks
Fattah
Ford
Hall (OH)
Hastings (FL)
Hefley
Luther
Meek (FL)
Owens
Oxley
Stark
Stearns
Taylor (MS)
Wexler
Young (AK)
{time} 0354
So the bill was passed.
The result of the vote was announced as above recorded.
A motion to reconsider was laid on the table.
____________________