[Congressional Record Volume 148, Number 5 (Tuesday, January 29, 2002)]
[Senate]
[Pages S239-S254]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 2728. Mr. THOMAS submitted an amendment intended to be proposed by 
him to the bill H.R. 622, to amend the Internal Revenue Code of 1986 to 
expand the adoption credit, and for other purposes; which was ordered 
to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. MODIFICATIONS TO SMALL ISSUE BOND PROVISIONS.

       (a) Increase in Amount of Qualified Small Issue Bonds 
     Permitted for Facilities To Be Used by Related Principal 
     Users.--
       (1) In general.--Clause (i) of section 144(a)(4)(A) 
     (relating to $10,000,000 limit in certain cases) is amended 
     by striking ``$10,000,000'' and inserting ``$20,000,000''.
       (2) Cost-of-living adjustment.--Section 144(a)(4) is 
     amended by adding at the end the following:
       ``(G) Cost-of-living adjustment.--In the case of a taxable 
     year beginning in a calendar year after 2002, the $20,000,000 
     amount under subparagraph (A) shall be increased by an amount 
     equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment under section 1(f)(3) 
     for the calendar year in which the taxable year begins, 
     determined by substituting `calendar year 2001' for `calendar 
     year 1992' in subparagraph (B) thereof.''.
       (3) Clerical amendment.--The heading of paragraph (4) of 
     section 144(a) is amended by striking ``$10,000,000'' and 
     inserting ``$20,000,000''.
       (4) Effective date.--The amendments made by this subsection 
     shall apply to--
       (A) obligations issued after the date of the enactment of 
     this Act, and
       (B) capital expenditures made after such date with respect 
     to obligations issued on or before such date.
       (b) Definition of Manufacturing Facility.--
       (1) In general.--Section 144(a)(12)(C) (relating to 
     definition of manufacturing facility) is amended to read as 
     follows:

[[Page S240]]

       ``(C) Manufacturing facility.--For purposes of this 
     paragraph, the term `manufacturing facility' means any 
     facility which is used in--
       ``(i) the manufacturing or production of tangible personal 
     property (including the processing resulting in a change in 
     the condition of such property),
       ``(ii) the manufacturing, development, or production of 
     specifically developed software products or processes if--

       ``(I) it takes more than 6 months to develop or produce 
     such products,
       ``(II) the development or production could not with due 
     diligence be reasonably expected to occur in less than 6 
     months, and
       ``(III) the software product or process comprises programs, 
     routines, and attendant documentation developed and 
     maintained for use in computer and telecommunications 
     technology, or

       ``(iii) the manufacturing, development, or production of 
     specially developed biobased or bioenergy products or 
     processes if--

       ``(I) it takes more than 6 months to develop or produce,
       ``(II) the development or production could not with due 
     diligence be reasonably expected to occur in less than 6 
     months, and
       ``(III) the biobased or bioenergy product or process 
     comprises products, processes, programs, routines, and 
     attendant documentation developed and maintained for the 
     utilization of biological materials in commercial or 
     industrial products, for the utilization of renewable 
     domestic agricultural or forestry materials in commercial or 
     industrial products, or for the utilization of biomass 
     materials.

       ``(D) Related facilities.--For purposes of subparagraph 
     (C), the term `manufacturing facility' includes a facility 
     which is directly and functionally related to a manufacturing 
     facility (determined without regard to subparagraph (C)) if--
       ``(i) such facility, including an office facility and a 
     research and development facility, is located on the same 
     site as the manufacturing facility, and
       ``(ii) not more than 40 percent of the net proceeds of the 
     issue are used to provide such facility,

     but shall not include a facility used solely for research and 
     development activities.''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to obligations issued after the date of the 
     enactment of this Act.
                                  ____

  SA 2729. Mr. McCONNELL submitted an amendment intended to be proposed 
by him to the bill H.R. 622, to amend the Internal Revenue Code of 1986 
to expand the adoption credit, and for other purposes; which was 
ordered to lie on the table; as follows:
       At the end add the following:

     SEC. __. CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF FOOD 
                   INVENTORY.

       (a) In General.--Subsection (e) of section 170 of the 
     Internal Revenue Code of 1986 (relating to certain 
     contributions of ordinary income and capital gain property) 
     is amended by adding at the end the following new paragraph:
       ``(7) Special rule for contributions of food inventory.--
       ``(A) Contributions by non-corporate taxpayers.--In the 
     case of a charitable contribution of food, paragraph (3) 
     shall be applied without regard to whether or not the 
     contribution is made by a corporation.
       ``(B) Determination of fair market value.--For purposes of 
     this section, in the case of a charitable contribution of 
     food which is a qualified contribution (within the meaning of 
     paragraph (3), as modified by subparagraph (A) of this 
     paragraph) and which, solely by reason of internal standards 
     of the taxpayer, lack of market, or similar circumstances, 
     cannot or will not be sold, the fair market value of such 
     contribution shall be determined--
       ``(i) without regard to such internal standards, such lack 
     of market, or such circumstances, and
       ``(ii) if applicable, by taking into account the price at 
     which the same or similar food items are sold by the taxpayer 
     at the time of the contribution (or, if not so sold at such 
     time, in the recent past).''
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to taxable years beginning after December 31, 
     2001.
                                  ____

  SA 2730. Mr. SPECTER (for himself and Mr. Schumer) submitted an 
amendment intended to be proposed to amendment SA 2698 submitted by Mr. 
Daschle and intended to be proposed to the bill (H.R. 622) to amend the 
Internal Revenue Code of 1986 to expand the adoption credit, and for 
other purposes; which was ordered to lie on the table, as follows:

       At the end of title V, add the following:

     SEC.  . FUNDING FOR RAILROAD TRACK REHABILITATION, 
                   PRESERVATION, AND IMPROVEMENT.

       There is appropriated to the Department of Transportation 
     for the Federal Railroad Administration for fiscal year 2002, 
     out of any funds in the Treasury not otherwise appropriated, 
     $350,000,000 for capital grants to be made by the Secretary 
     of Transportation for rehabilitation, preservation, or 
     improvement of railroad track (including roadbed, bridges, 
     and related track structures) of class II and class III 
     railroads. Funds appropriated by the preceding sentence shall 
     remain available until expended.
                                  ____

  SA 2731. Mrs. FEINSTEIN submitted an amendment intended to be 
proposed by her to the bill H.R. 622, to amend the Internal Revenue 
Code of 1986 to expand the adoption credit, and for other purposes; 
which was ordered to lie to the table; as follows:

       At the appropriate place, insert the following:

           TITLE __--TEMPORARY EXTENDED UNEMPLOYMENT BENEFITS

     SEC. __01. SHORT TITLE.

       This title may be cited as the ``Temporary Extended 
     Unemployment Compensation Act of 2002''.

     SEC. __02. 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--
       (1) who--
       (A) first exhausted all rights to regular compensation 
     under the State law on or after the first day of the week 
     that includes September 11, 2001; or
       (B) have their 26th week of regular compensation under the 
     State law end on or after the first day of the week that 
     includes September 11, 2001;
       (2) who do not have any rights to regular compensation 
     under the State law of any other State; and
       (3) who are not receiving compensation under the 
     unemployment compensation law of any other country.
       (c) Coordination Rules.--
       (1) Temporary extended unemployment compensation to serve 
     as second-tier benefits.--Notwithstanding any other provision 
     of law, neither regular compensation, extended compensation, 
     nor additional compensation under any Federal or State law 
     shall be payable to any individual for any week for which 
     temporary extended unemployment compensation is payable to 
     such individual.
       (2) Treatment of other unemployment compensation.--After 
     the date on which a State enters into an agreement under this 
     title, any regular compensation in excess of 26 weeks, any 
     extended compensation, and any additional compensation under 
     any Federal or State law shall be payable to an individual in 
     accordance with the State law after such individual has 
     exhausted any rights to temporary extended unemployment 
     compensation under the agreement.
       (d) Exhaustion of Benefits.--For purposes of subsection 
     (b)(1)(A), 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 the individual has received all regular 
     compensation available to the individual based on employment 
     or wages during the individual's base period; or
       (2) the 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.
       (e) Weekly Benefit Amount, Terms and Conditions, Etc. 
     Relating to Temporary Extended Unemployment Compensation.--
     For purposes of any agreement under this title--
       (1) the amount of temporary extended 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 extended unemployment 
     compensation and the payment thereof, except where 
     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 __03 shall not exceed the amount established in 
     such account for such individual.

     SEC. __03. 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.
       (b) Amount in Account.--
       (1) In general.--The amount established in an account under 
     subsection (a) shall be equal to the greater of--
       (A) 50 percent of the total amount of regular compensation 
     (including dependents' allowances) payable to the individual 
     during

[[Page S241]]

     the individual's benefit year under such law; or
       (B) 13 times the individual's weekly benefit amount.
       (2) Weekly benefit amount.--For purposes of paragraph 
     (1)(B), an individual's weekly benefit amount for any week is 
     an amount equal to the amount of regular compensation 
     (including dependents' allowances) under the State law 
     payable to the individual for such week for total 
     unemployment.

     SEC. __04. PAYMENTS TO STATES HAVING AGREEMENTS UNDER THIS 
                   TITLE.

       (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) Determination of Amount.--Sums under subsection (a) 
     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.
       (c) Administrative Expenses.--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.

     SEC. __05. 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))), and the Federal 
     unemployment account (as established by section 904(g) of 
     such Act (42 U.S.C. 1104(g))), of the Unemployment Trust Fund 
     (as established by section 904(a) of such Act (42 U.S.C. 
     1104(a))) shall be used, in accordance with subsection (b), 
     for the making of payments (described in section __04(a)) 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 described in section __04(a) which are 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 
     (or, to the extent that there are insufficient funds in that 
     account, from the Federal unemployment account, as so 
     established) to the account of such State in the Unemployment 
     Trust Fund (as so established).

     SEC. __06. 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 temporary 
     extended unemployment compensation under this title to which 
     such individual was not entitled, such individual--
       (1) shall be ineligible for any further benefits 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 any temporary extended unemployment compensation 
     under this title to which such individuals 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 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 such individuals 
     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. __07. 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. __08. 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 6, 2003.

               TITLE __--ASSISTANCE FOR MEDICAID COVERAGE

     SEC. __01. TEMPORARY INCREASES OF MEDICAID FMAP.

       (a) Permitting Maintenance of Fiscal Year 2001 FMAP For 
     Last 3 Calendar Quarters of Fiscal Year 2002.--
     Notwithstanding any other provision of law, but subject to 
     subsection (e), 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 the second, third, and fourth calendar 
     quarters in fiscal year 2002, before the application of this 
     section.
       (b) Permitting Maintenance of Fiscal Year 2002 FMAP For 
     First Calendar Quarter of Fiscal Year 2003.--Notwithstanding 
     any other provision of law, but subject to subsection (e), if 
     the FMAP determined without regard to this section for a 
     State for fiscal year 2003 is less than the FMAP as so 
     determined for fiscal year 2002, the FMAP for the State for 
     fiscal year 2002 shall be substituted for the State's FMAP 
     for the first calendar quarter in fiscal year 2003, before 
     the application of this section.
       (c) General 1.50 Percentage Points Increase for Calendar 
     Year 2002.--Notwithstanding any other provision of law, but 
     subject to subsections (f) and (g), for each State for the 
     second, third, and fourth calendar quarters in fiscal year 
     2002 and the first calendar quarter of fiscal year 2003, the 
     FMAP (taking into account the application of subsections (a) 
     and (b)) shall be increased by 1.50 percentage points.
       (d) Further Increase for States With High Unemployment 
     Rates for Calendar Year 2002.--
       (1) In general.--Notwithstanding any other provision of 
     law, but subject to subsections (f) and (g), the FMAP for a 
     high unemployment State for the second, third, and fourth 
     calendar quarters in fiscal year 2002 and the first calendar 
     quarter in fiscal year 2003 (and any subsequent calendar 
     quarter in calendar year 2002 or the first calendar quarter 
     in fiscal year 2003 regardless of whether the State continues 
     to be a high unemployment State for any such calendar 
     quarter) shall be increased (after the application of 
     subsections (a), (b), and (c)) by 1.50 percentage points.
       (2) High unemployment state.--
       (A) In general.--For purposes of this subsection, a State 
     is a high unemployment State for a calendar quarter if, for 
     any 3 consecutive months 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.
       (B) Average weighted unemployment rate defined.--For 
     purposes of subparagraph (A), the ``average weighted 
     unemployment rate'' for a period is--
       (i) the sum of the seasonally adjusted number of unemployed 
     civilians in each State and the District of Columbia for the 
     period; divided by
       (ii) the sum of the civilian labor force in each State and 
     the District of Columbia for the period.
       (e) Increase in Cap on Medicaid Payments To Territories.--
     Notwithstanding any other provision of law, with respect to 
     the second, third, and fourth calendar quarters fiscal year 
     2002 and the first calendar quarter in fiscal year 2003, the 
     amounts otherwise determined for Puerto Rico, the Virgin 
     Islands, Guam, the Northern Mariana Islands, and American 
     Samoa under section 1108 of the Social Security Act (42 
     U.S.C. 1308) shall each be increased by an amount equal to 6 
     percentage points of such amounts.
       (f) 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 (42 U.S.C. 1396r-4); and

[[Page S242]]

       (2) payments under titles IV and XXI of such Act (42 U.S.C. 
     601 et seq. and 1397aa et seq.).
       (g) State Eligibility.--A State is eligible for an increase 
     in its FMAP under subsection (c) or (d) or an increase in a 
     cap amount under subsection (e) 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 (42 U.S.C. 1315)) is no more restrictive than the 
     eligibility under such plan (or waiver) as in effect on 
     October 1, 2001.
       (h) Definitions.--In 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 (42 
     U.S.C. 1396 et seq.).
                                  ____

  SA 2732. Mr. SMITH of New Hampshire proposed an amendment to 
amendment SA 2698 submitted by Mr. Daschle and intended to be proposed 
to the bill (H.R. 622) to amend the Internal Revenue Code of 1986 to 
expand the adoption credit, and for other purposes; as follows:

       At the appropriate place in the bill, insert the following:

     SEC. __. WAIVER OF EARLY WITHDRAWAL PENALTY FOR DISTRIBUTIONS 
                   FROM QUALIFIED RETIREMENT PLANS TO INDIVIDUALS 
                   CALLED TO ACTIVE DUTY DURING THE NATIONAL 
                   EMERGENCY DECLARED BY THE PRESIDENT ON 
                   SEPTEMBER 14, 2001.

       (a) Waiver for Certain Distributions.--
       (1) In general.--Section 72(t)(2) of the Internal Revenue 
     Code of 1986 (relating to 10-percent additional tax on early 
     distributions from qualified retirement plans) is amended by 
     adding at the end the following:
       ``(G) Distributions to individuals performing national 
     emergency active duty.--Any distribution to an individual 
     who, at the time of the distribution, is a member of a 
     reserve component called or ordered to active duty pursuant 
     to a provision of law referred to in section 101(a)(13)(B) of 
     title 10, United States Code, during the period of the 
     national emergency declared by the President on September 14, 
     2001.''.
       (2) Waiver of underpayment penalty.--Section 6654(e)(3) of 
     such Code (relating to waiver in certain cases) is amended by 
     adding at the end the following:
       ``(C) Certain early withdrawals from retirement plans.--No 
     addition to tax shall be imposed under subsection (a) with 
     respect to any underpayment to the extent such underpayment 
     was created or increased by any distribution described in 
     section 72(t)(2)(G).''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to distributions made to an individual after 
     September 13, 2001.
       (b) Catch-up Contributions Allowed.--
       (1) Individual retirement accounts.--Section 219(b)(5) of 
     the Internal Revenue Code of 1986 (relating to deductible 
     amount) is amended by adding at the end the following:
       ``(D) Catch-up contributions for certain distributions.--In 
     the case of an individual who has received a distribution 
     described in section 72(t)(2)(G), the deductible amount for 
     any taxable year shall be increased by an amount equal to--
       ``(i) the aggregate amount of such distributions (not 
     attributable to earnings) made with respect to such 
     individual, over
       ``(ii) the aggregate amount of such distributions (not 
     attributable to earnings) previously taken into account under 
     this subparagraph or section 414(w).''.
       (2) Roth iras.--Section 408A(c) of such Code (relating to 
     treatment of contributions) is amended by redesignating 
     paragraph (7) as paragraph (8) and by inserting after 
     paragraph (6) the following:
       ``(7) Catch-up contributions for certain distributions.--
     Any contribution described in section 219(b)(5)(D) shall not 
     be taken into account for purposes of paragraph (2).''.
       (3) Employer plans.--Section 414 of such Code (relating to 
     definitions and special rules) is amended by adding at the 
     end the following:
       ``(w) Catch-up Contributions for Certain Distributions.--
       ``(1) In general.--An applicable employer plan shall not be 
     treated as failing to meet any requirement of this title 
     solely because the plan permits an applicable participant to 
     make additional elective deferrals in any plan year.
       ``(2) Limitation on amount of additional deferrals.--
       ``(A) In general.--A plan shall not permit additional 
     elective deferrals under paragraph (1) for any year in an 
     amount greater than the lesser of--
       ``(i) the applicable dollar amount, or
       ``(ii) the excess (if any) of--

       ``(I) the participant's compensation (as defined in section 
     415(c)(3)) for the year, over
       ``(II) any other elective deferrals of the participant for 
     such year which are made without regard to this subsection.

       ``(B) Applicable dollar amount.--For purposes of this 
     paragraph, the applicable dollar amount with respect to a 
     participant shall be an amount equal to--
       ``(i) the aggregate amount of distributions described in 
     section 72(t)(2)(G) (not attributable to earnings) made with 
     respect to such participant, over
       ``(ii) the aggregate amount of such distributions (not 
     attributable to earnings) previously taken into account under 
     this subsection or section 219(b)(5)(B).
       ``(3) Treatment of contributions.--Rules similar to the 
     rules of paragraphs (3) and (4) of subsection (v) shall apply 
     with respect to contributions made under this subsection.
       ``(4) Definitions.--For purposes of this subsection, the 
     terms `applicable employer plan' and `elective deferral' have 
     the same meanings given such terms in subsection (v)(6).''.
       (4) Conforming amendment.--Section 414(v)(2)(A)(ii)(II) of 
     such Code (relating to limitation on amount of additional 
     deferrals) is amended by inserting ``(other than deferrals 
     under subsection (w))'' after ``deferrals''.
       (5) Effective date.--The amendments made by this subsection 
     shall apply to contributions in taxable years ending after 
     December 31, 2001.

     
                                  ____
  SA 2733. Mr. SMITH of New Hampshire proposed an amendment to 
amendment SA 2698 submitted by Mr. Daschle and intended to be proposed 
to the bill (H.R. 622) to amend the Internal Revenue Code of 1986 to 
expand the adoption credit, and for other purposes; as follows:

       At the appropriate place in the bill, insert the following:

     SEC. __. PROHIBITION ON IMPOSITION OF INCOME TAXES BY STATES 
                   ON NONRESIDENTS.

       (a) In General.--Chapter 4 of title 4, United States Code, 
     is amended by adding at the end the following:

     ``Sec. 116. Prohibition on imposition of income taxes by 
       States on nonresidents

       ``Except to the extent otherwise provided in any voluntary 
     compact between or among States, a State or political 
     subdivision thereof may not impose a tax on income earned 
     within such State or political subdivision by nonresidents of 
     such State.''.
       (b) Conforming Amendment.--The table of sections for 
     chapter 4 of title 4, United States Code, is amended by 
     adding at the end the following:

``116. Prohibition on imposition of income taxes by States on 
              nonresidents.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after the date of 
     enactment of this Act.
                                  ____

  SA 2734. Mr. SMITH of New Hampshire proposed an amendment to 
amendment SA 2698 submitted by Mr. Daschle and intended to be proposed 
to the bill (H.R. 622) to amend the Internal Revenue Code of 1986 to 
expand the adoption credit, and for other purposes; as follows:

       At the appropriate place in the bill, insert the following:

     SEC. __. TIPS RECEIVED FOR CERTAIN SERVICES NOT SUBJECT TO 
                   INCOME OR EMPLOYMENT TAXES.

       (a) In General.--Section 102 of the Internal Revenue Code 
     of 1986 (relating to gifts and inheritances) is amended by 
     adding at the end the following new subsection:
       ``(d) Tips Received for Certain Services.--
       ``(1) In general.--For purposes of subsection (a), tips 
     received by an individual for qualified services performed by 
     such individual shall be treated as property transferred by 
     gift.
       ``(2) Qualified services.--For purposes of this subsection, 
     the term `qualified services' means cosmetology, hospitality 
     (including lodging and food and beverage services), 
     recreation, baggage handling, transportation, delivery, shoe 
     shine, and other services where tips are customary.
       ``(3) Annual limit.--The amount excluded from gross income 
     for the taxable year by reason of paragraph (1) with respect 
     to each service provider shall not exceed $10,000.
       ``(4) Employee taxable on at least minimum wage.--Paragraph 
     (1) shall not apply to tips received by an employee during 
     any month to the extent that such tips--
       ``(A) are deemed to have been paid by the employer to the 
     employee pursuant to section 3121(q) (without regard to 
     whether such tips are reported under section 6053), and
       ``(B) do not exceed the excess of--
       ``(i) the minimum wage rate applicable to such individual 
     under section 6(a)(1) of the Fair Labor Standards Act of 1938 
     (determined without regard to section 3(m) of such Act), over
       ``(ii) the amount of the wages (excluding tips) paid by the 
     employer to the employee during such month.
       ``(5) Tips.--For purposes of this title, the term `tip' 
     means a gratuity paid by an individual for services performed 
     for such individual (or for a group which includes such 
     individual) by another individual if such services are not 
     provided pursuant to an employment or similar contractual 
     relationship between such individual.''
       (b) Exclusion From Social Security Taxes.--
       (1) Paragraph (12) of section 3121(a) of such Code is 
     amended to read as follows:
       ``(12)(A) tips paid in any medium other than cash;
       ``(B) cash tips received by an employee in any calendar 
     month in the course of his employment by an employer unless 
     the amount of such cash tips is $20 or more and then only to 
     the extent includible in gross income after the application 
     of section 102(d).'';

[[Page S243]]

       (2) Paragraph (10) of section 209(a) of the Social Security 
     Act is amended to read as follows:
       ``(10)((A) tips paid in any medium other than cash;
       ``(B) cash tips received by an employee in any calendar 
     month in the course of his employment by an employer unless 
     the amount of such cash tips is $20 or more and then only to 
     the extent includible in gross income after the application 
     of section 102(d) of the Internal Revenue Code of 1986 of 
     such month.''; and
       (3) Paragraph (3) of section 3231(e) of such Code is 
     amended to read as follows:
       ``(3) Solely for purposes of the taxes imposed by section 
     3201 and other provisions of this chapter insofar as they 
     relate to such taxes, the term `compensation' also includes 
     cash tips received by an employee in any calendar month in 
     the course of his employment by an employer if the amount of 
     such cash tips is $20 or more and then only to the extent 
     includible in gross income after the application of section 
     102(d).''.
       (c) Exclusion From Unemployment Compensation Taxes.--
     Submission (s) of section 3306 of such Code is amended to 
     read as follows:
       ``(s) Tips Not Treated as Wages.--For purposes of this 
     chapter, the term `wages' shall include tips received in any 
     month only to the extent includible in gross income after the 
     application of section 102(d) of such month.''.
       (d) Exclusion From Wage Withholding.--Paragraph (16) of 
     section 3401(a) of such Code is amended to read as follows:
       ``(16)(A) as tips in any medium other than cash;
       ``(B) as cash tips to an employee in any calendar month in 
     the course of his employment by an employer unless the amount 
     of such cash tips is $20 or more and then only to the extent 
     includible in gross income after the application of section 
     102(d).''
       (e) Conforming Amendment.--Sections 32(c)(2)(A)(i) and 
     220(b)(4)(A) of such Code are each amended by striking 
     ``tips'' and inserting ``tips to the extent includable in 
     gross income after the application of section 102(d))''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to tips received after the calendar month which 
     includes the date of the enactment of this Act.
                                  ____

  SA 2735. Mr. SMITH of New Hampshire proposed an amendment to 
amendment SA 2698 submitted by Mr. Daschle and intended to be proposed 
to the bill (H.R. 622) to amend the Internal Revenue Code of 1986 to 
expand the adoption credit, and for other purposes; as follows:

       At the appropriate place in the bill, insert the following:

     SEC.  . REAL PROPERTY TAX DEDUCTION ALLOWED WHETHER OR NOT 
                   TAXPAYER ITEMIZES OTHER DEDUCTIONS.

       (a) In General.--Section 62(a) of the Internal Revenue Code 
     of 1986 (defining adjusted gross income) is amended by 
     inserting after paragraph (18) the following:
       ``(19) Real property taxes.--The deduction allowed by 
     section 164(a)(1).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to any payment due after December 31, 2000.
                                  ____

       SA 2736. Mr. SESSIONS (for himself, Mr. Allen, Mr. Smith of 
     New Hampshire, Mr. Hutchinson, and Mr. Brownback) proposed an 
     amendment to amendment SA 2698 submitted by Mr. Daschle and 
     intended to be proposed to the bill (H.R. 622) to amend the 
     Internal Revenue Code of 1986 to expand the adoption credit, 
     and for other purposes; as follows:

       At the end, add the following:

      DIVISION II--AMERICAN FAMILY ECONOMIC SECURITY AND STIMULUS

     SECTION 1. SHORT TITLE; ETC.

       (a) Short Title.--This division may be cited as the 
     ``American Family Economic Security and Stimulus Act''.
       (b) References to Internal Revenue Code of 1986.--Except as 
     otherwise expressly provided, whenever in this division 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--ADVANCE PAYMENT OF EARNED INCOME CREDIT

Sec. 101. Additional requirements to ensure greater use of advance 
              payment of earned income credit.
Sec. 102. Extension of advance payment of earned income credit to all 
              eligible taxpayers.

                    TITLE II--INDIVIDUAL PROVISIONS

Sec. 201. Acceleration of 25 percent individual income tax rate.
Sec. 202. Temporary expansion of penalty-free retirement plan 
              distributions for health insurance premiums of unemployed 
              individuals.
Sec. 203. Increase in child tax credit.
Sec. 204. Temporary increase in deduction for capital losses of 
              taxpayers other than corporations.
Sec. 205. Nonrefundable credit for elementary and secondary school 
              expenses.

                   TITLE III--UNEMPLOYMENT ASSISTANCE

Sec. 301. Short title.
Sec. 302. Federal-State agreements.
Sec. 303. Temporary extended unemployment compensation account.
Sec. 304. Payments to States having agreements for the payment of 
              temporary extended unemployment compensation.
Sec. 305. Financing provisions.
Sec. 306. Fraud and overpayments.
Sec. 307. Definitions.
Sec. 308. Applicability.
Sec. 309. Special Reed Act transfer in fiscal year 2002.

                  TITLE IV--NATIONAL EMERGENCY GRANTS

Sec. 401. National emergency grant assistance for workers.

             TITLE V--TEMPORARY BUSINESS RELIEF PROVISIONS

Sec. 501. Special depreciation allowance for certain property acquired 
              after December 31, 2001, and before January 1, 2004.

                    TITLE VI--ADDITIONAL PROVISIONS

Sec. 601. Emergency designation.

            TITLE I--ADVANCE PAYMENT OF EARNED INCOME CREDIT

     SEC. 101. ADDITIONAL REQUIREMENTS TO ENSURE GREATER USE OF 
                   ADVANCE PAYMENT OF EARNED INCOME CREDIT.

       Not later than February 1, 2002, the Secretary of the 
     Treasury by regulation shall require--
       (1) each employer of an employee who the employer 
     determines receives wages in an amount which indicates that 
     such employee would be eligible for the earned income credit 
     under section 32 of the Internal Revenue Code of 1986 to 
     provide such employee with a simplified application for an 
     earned income eligibility certificate, and
       (2) require each employee wishing to receive the earned 
     income tax credit to complete and return the application to 
     the employer within 30 days of receipt.

     Such regulations shall require an employer to provide such an 
     application within 30 days of the hiring date of an employee 
     and at least annually thereafter. Such regulations shall 
     further provide that, upon receipt of a completed form, an 
     employer shall provide for the advance payment of the earned 
     income credit as provided under section 3507 of the Internal 
     Revenue Code of 1986.

     SEC. 102. EXTENSION OF ADVANCE PAYMENT OF EARNED INCOME 
                   CREDIT TO ALL ELIGIBLE TAXPAYERS.

       (a) In General.--Section 3507(b) of the Internal Revenue 
     Code of 1986 (relating to earned income eligibility 
     certificate) is amended by striking paragraph (2) and by 
     redesignating paragraphs (3) and (4) as paragraphs (2) and 
     (3), respectively.
       (b) Conforming Amendments.--
       (1) Section 3507(c)(2)(B) of the Internal Revenue Code of 
     1986 is amended by inserting ``has 1 or more qualifying 
     children and'' before ``is not married,''.
       (2) Section 3507(c)(2)(C) of such Code is amended by 
     striking ``the employee'' and inserting ``an employee with 1 
     or more qualifying children''.
       (3) Section 3507(f) of such Code is amended by striking 
     ``who have 1 or more qualifying children and''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2001.

                    TITLE II--INDIVIDUAL PROVISIONS

     SEC. 201. 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.

     SEC. 202. TEMPORARY EXPANSION OF PENALTY-FREE RETIREMENT PLAN 
                   DISTRIBUTIONS FOR HEALTH INSURANCE PREMIUMS OF 
                   UNEMPLOYED INDIVIDUALS.

       (a) In General.--Subparagraph (D) of section 72(t)(2) is 
     amended by adding at the end the following new clause:
       ``(iv) Special rules for individuals receiving unemployment 
     compensation after

[[Page S244]]

     september 10, 2001, and before january 1, 2003.--In the case 
     of an individual who receives unemployment compensation for 4 
     consecutive weeks after September 10, 2001, and before 
     January 1, 2003--

       ``(I) clause (i) shall apply to distributions from all 
     qualified retirement plans (as defined in section 4974(c)), 
     and
       ``(II) such 4 consecutive weeks shall be substituted for 
     the 12 consecutive weeks referred to in subclause (I) of 
     clause (i).''

       (b) Effective Date.--The amendment made by this section 
     shall apply to distributions after the date of the enactment 
     of this division.

     SEC. 203. INCREASE IN CHILD TAX CREDIT.

       (a) In General.--The table contained in section 24(a)(2) 
     (relating to per child amount) is amended by striking all 
     matter preceding the second item and inserting the following:

``In the case of any taxable year beginning ``The per child amount is--
  2001......................................................$1,000 ....

  2002, 2003, or 2004........................................600''.....

       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.

     SEC. 204. TEMPORARY INCREASE IN DEDUCTION FOR CAPITAL LOSSES 
                   OF TAXPAYERS OTHER THAN CORPORATIONS.

       (a) In General.--Subsection (b) of section 1211 (relating 
     to limitation on capital losses for taxpayers other than 
     corporations) is amended by adding at the end the following 
     flush sentence:

     ``Paragraph (1) shall be applied by substituting `$5,000' for 
     `$3,000' and `$2,500' for `$1,500' in the case of taxable 
     years beginning in 2001 or 2002.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to taxable years beginning after December 31, 
     2000.

     SEC. 205. NONREFUNDABLE CREDIT FOR ELEMENTARY AND SECONDARY 
                   SCHOOL EXPENSES.

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

     ``SEC. 25C. CREDIT FOR ELEMENTARY AND SECONDARY SCHOOL 
                   EXPENSES.

       ``(a) Allowance of Credit.--In the case of an individual 
     who maintains a household which includes as a member one or 
     more qualifying students (as defined in subsection (b)(1)), 
     there shall be allowed as a credit against the tax imposed by 
     this chapter for the taxable year an amount equal to the 
     qualified elementary and secondary education expenses with 
     respect to such students which are paid or incurred by the 
     taxpayer during such taxable year.
       ``(b) Dollar Limit on Amount Creditable.--The amount of 
     qualified elementary and secondary education expenses paid or 
     incurred during any taxable year which may be taken into 
     account under subsection (a) shall not exceed $500.
       ``(c) Qualifying Student.--For purposes of this section, 
     the term ``qualifying student'' means a dependent of the 
     taxpayer (within the meaning of section 152) who is enrolled 
     in school on a full-time basis.
       ``(d) Qualified Elementary and Secondary Education 
     Expenses.--For purposes of this section--
       ``(1) In general.--The term `qualified elementary and 
     secondary education expenses' means computer technology or 
     equipment expenses.
       ``(2) Computer technology or equipment.--The term `computer 
     technology or equipment' has the meaning given such term by 
     section 170(e)(6)(F)(i) and includes Internet access and 
     related services and computer software if such software is 
     predominately educational in nature.
       ``(e) School.--For purposes of this section, the term 
     `school' means any public, charter, private, religious, or 
     home school which provides elementary education or secondary 
     education (through grade 12), as determined under State law.
       ``(f) Denial of Double Benefit.--No deduction shall be 
     allowed under this chapter for any contribution for which 
     credit is allowed under this section.
       ``(g) Election To Have Credit Not Apply.--A taxpayer may 
     elect to have this section not apply for any taxable year.
       ``(h) Termination.--This section shall not apply to 
     expenses paid or incurred after the date which is 90 days 
     after the date of the enactment of this section.''.
       (b) Conforming Amendments.--
       (1) Section 24(b)(3)(B), as added and amended by the 
     Economic Growth and Tax Relief Reconciliation Act of 2001, is 
     amended by striking ``23 and 25B'' and inserting ``23, 25B, 
     and 25C''.
       (2) Section 25(e)(1)(C) is amended by striking ``23 and 
     1400C'' and by inserting ``23, 25C, and 1400C''.
       (3) Section 25(e)(1)(C), as amended by the Economic Growth 
     and Tax Relief Reconciliation Act of 2001, is amended by 
     inserting ``25C,'' after ``25B,''.
       (4) Section 25B, as added by the Economic Growth and Tax 
     Relief Reconciliation Act of 2001, is amended by striking 
     ``section 23'' and inserting ``sections 23 and 25C''.
       (5) Section 26(a)(1), as amended by the Economic Growth and 
     Tax Relief Reconciliation Act of 2001, is amended by striking 
     ``and 25B'' and inserting ``25B, and 25C''.
       (6) Section 1400C(d) is amended by inserting ``and section 
     25C'' after ``this section''.
       (7) Section 1400C(d), as amended by the Economic Growth and 
     Tax Relief Reconciliation Act of 2001, is amended by striking 
     ``and 25B'' and inserting ``25B, and 25C''.
       (8) The table of sections for subpart A of part IV of 
     subchapter A of chapter 1 is amended by inserting before the 
     item relating to section 26 the following new item:

``Sec. 25C. Credit for elementary and secondary school expenses.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after the date of the 
     enactment of this division.

                   TITLE III--UNEMPLOYMENT ASSISTANCE

     SEC. 301. SHORT TITLE.

       This title of this division may be cited as the ``Temporary 
     Extended Unemployment Compensation Act of 2002''.

     SEC. 302. 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 303 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. 303. 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--

[[Page S245]]

       (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. 304. 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. 305. 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 
     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. 306. 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. 307. 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. 308. 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. 309. 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 division 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 2002 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

[[Page S246]]

     entered into an agreement under the Temporary Extended 
     Unemployment Compensation Act of 2002), 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 IV--NATIONAL EMERGENCY GRANTS

     SEC. 401. NATIONAL EMERGENCY GRANT ASSISTANCE FOR WORKERS.

       (a) Eligibility for Grants.--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'',
       (2) in paragraph (3), by striking the period and inserting 
     ``; and'', and
       (3) by adding at the end the following new paragraph:
       ``(4) from funds appropriated under section 174(c), to a 
     State to provide employment and training assistance and the 
     assistance described in subsections (f) and (g) to dislocated 
     workers affected by a plant closure, mass layoff, or multiple 
     layoffs if the Governor certifies in the application for 
     assistance that the attacks of September 11, 2001, 
     contributed importantly to such plant closures, mass layoffs, 
     and multiple layoffs, and to independently owned businesses 
     and proprietorships.''.
       (b) Use of Funds.--Section 173 of the Workforce Investment 
     Act of 1998 (29 U.S.C. 2918) is amended by adding at the end 
     the following new subsections:
       ``(f) COBRA Continuation Coverage Payment Requirements.--
       ``(1) In general.--Funds made available to a State under 
     paragraph (4) of subsection (a) may be used by the State to 
     assist a participant in the program under such paragraph by 
     paying up to 75 percent of the participant's and any 
     dependents' contribution for COBRA continuation coverage of 
     the participant and dependents for a period not to exceed 10 
     months.
       ``(2) Definition.--For purposes of paragraph (1), 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.
       ``(g) Government Intervention Supplements.--
       ``(1) Personal income.--Using funds made available under 
     subsection (a)(4), a State may provide personal income 
     compensation to a dislocated worker described in such 
     subsection if--
       ``(A) the worker is unable to work due to direct Federal 
     Government intervention, as a result of a direct response to 
     the terrorist attacks which occurred on September 11, 2001, 
     leading to--
       ``(i) closure of the facility at which the worker was 
     employed, prior to the intervention; or
       ``(ii) a restriction on how business may be conducted at 
     the facility; and
       ``(B) the facility is located within an area in a State in 
     which a major disaster or emergency was certified by the 
     Governor.
       ``(2) Business income.--Using funds made available under 
     subsection (a)(4), a State may provide business income 
     compensation to an independently owned business or 
     proprietorship if--
       ``(A) the business or proprietorship is unable to earn 
     revenue due to direct Federal intervention, as a result of a 
     direct response to the terrorist attacks which occurred on 
     September 11, 2001, leading to--
       ``(i) closure of the facility at which the business or 
     proprietorship was located, prior to the intervention; or
       ``(ii) a restriction on how customers may access the 
     facility; and
       ``(B) the facility is located within an area in a State in 
     which a major disaster or emergency was certified by the 
     Governor.''.
       (c) Authorization of Appropriations.--Section 174 of the 
     Workforce Investment Act of 1998 (29 U.S.C. 2919) is amended 
     by adding at the end the following new subsection:
       ``(c) National Emergency Grants Relating to September 11 
     Attacks.--There are authorized to be appropriated to carry 
     out subsection (a)(4) of section 173 $5,000,000,000 for 
     fiscal year 2002. Funds appropriated under this subsection 
     shall be available for obligation for a period beginning with 
     the date of enactment of such appropriations and ending 18 
     months thereafter.''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on the date of enactment of this section.

             TITLE V--TEMPORARY BUSINESS RELIEF PROVISIONS

     SEC. 501. SPECIAL DEPRECIATION ALLOWANCE FOR CERTAIN PROPERTY 
                   ACQUIRED AFTER DECEMBER 31, 2001, AND BEFORE 
                   JANUARY 1, 2004.

       (a) In General.--Section 168 of the Internal Revenue Code 
     of 1986 (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 
     December 31, 2001, and Before January 1, 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,
       ``(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 December 31, 2001,
       ``(iii) which is--

       ``(I) acquired by the taxpayer after December 31, 2001, and 
     before January 1, 2004, but only if no written binding 
     contract for the acquisition was in effect before January 1, 
     2002, or
       ``(II) acquired by the taxpayer pursuant to a written 
     binding contract which was entered into after December 31, 
     2001, and before January 1, 2004, and

       ``(iv) which is placed in service by the taxpayer before 
     January 1, 2004, or, in the case of property described in 
     subparagraph (B), before January 1, 2005.
       ``(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),

[[Page S247]]

       ``(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-january 1, 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 January 1, 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.
       ``(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 December 31, 2001, and before January 1, 2004.
       ``(ii) Sale-leasebacks.--For purposes of subparagraph 
     (A)(ii), if property--

       ``(I) is originally placed in service after December 31, 
     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).
       ``(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) of the Internal 
     Revenue Code of 1986 (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 december 31, 2001, and before january 1, 2004.--The 
     deduction under section 168(k) shall be allowed.''
       (2) Conforming amendment.--Clause (i) of section 
     56(a)(1)(A) of the Internal Revenue Code of 1986 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 December 31, 
     2001, in taxable years ending after such date.

                    TITLE VI--ADDITIONAL PROVISIONS

     SEC. 602. 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 division 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 division 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.
                                  ____

  SA 2737. Mrs. HUTCHISON submitted an amendment intended to be 
proposed by her to the bill H.R. 622, to amend the Internal Revenue 
Code of 1986 to expand the adoption credit, and for other purposes; 
which was ordered to lie on the table; as follows:

       Strike all after ``SECTION'' and insert the following:
       1. SHORT TITLE; ETC.
       (a) Short Title.--This Act may be cited as the ``Economic 
     Security and Recovery Act of 2002''.
       (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.--

 TITLE I--ELIMINATION OF SUNSET OF THE ECONOMIC GROWTH AND TAX RELIEF 
                       RECONCILIATION ACT OF 2001

Sec. 101. Elimination of sunset of the Economic Growth and Tax Relief 
              Reconciliation Act of 2001.

                     TITLE II--BUSINESS PROVISIONS

Sec. 201. Special depreciation allowance for certain property acquired 
              after September 10, 2001, and before September 11, 2004.

                   TITLE III--UNEMPLOYMENT ASSISTANCE

Sec. 301. Short title.
Sec. 302. Federal-State agreements.
Sec. 303. Temporary extended unemployment compensation account.
Sec. 304. Payments to States having agreements for the payment of 
              temporary extended unemployment compensation.
Sec. 305. Financing provisions.
Sec. 306. Fraud and overpayments.
Sec. 307. Definitions.
Sec. 308. Applicability.
Sec. 309. Special Reed Act transfer in fiscal year 2002.

            TITLE IV--TEMPORARY STATE HEALTH CARE ASSISTANCE

Sec. 401. Temporary State health care assistance.

                     TITLE V--ADDITIONAL PROVISIONS

Sec. 501. Emergency designation.

 TITLE I--ELIMINATION OF SUNSET OF THE ECONOMIC GROWTH AND TAX RELIEF 
                       RECONCILIATION ACT OF 2001

     SEC. 101. ELIMINATION OF SUNSET OF THE ECONOMIC GROWTH AND 
                   TAX RELIEF RECONCILIATION ACT OF 2001.

       Title IX of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 is repealed.

                     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.

[[Page S248]]

       ``(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.''
       (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.

                   TITLE III--UNEMPLOYMENT ASSISTANCE

     SEC. 301. SHORT TITLE.

       This title may be cited as the ``Temporary Extended 
     Unemployment Compensation Act of 2002''.

     SEC. 302. 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 303 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. 303. 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

[[Page S249]]

     of regular compensation (including dependents' allowances) 
     under the State law payable to such individual for such week 
     for total unemployment.

     SEC. 304. 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. 305. 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 
     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. 306. 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. 307. 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. 308. 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. 309. 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 309(a)(1) of the Temporary Extended 
     Unemployment Compensation Act of 2002 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 2002), 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

[[Page S250]]

     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 IV--TEMPORARY STATE HEALTH CARE ASSISTANCE

     SEC. 401. 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 V--ADDITIONAL PROVISIONS

     SEC. 501. 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.
                                  ____

  SA 2738. Mrs. HUTCHISON (for herself and Mr. Gramm) submitted an 
amendment intended to be proposed by her to the bill H.R. 622, to amend 
the Internal Revenue Code of 1986 to expand the adoption credit, and 
for other purposes; which was ordered to lie on the table; as follows:

       At the end, add the following:

    TITLE __--ELIMINATION OF MARRIAGE PENALTY IN 15-PERCENT BRACKET.

     SEC. __01. ELIMINATION OF MARRIAGE PENALTY IN 15-PERCENT 
                   BRACKET.

       (a) In General.--Section 1(f ) of the Internal Revenue Code 
     of 1986 (relating to adjustments in tax tables so that 
     inflation will not result in tax increases) is amended by 
     adding at the end the following new paragraph:
       ``(8) Phaseout of marriage penalty in 15-percent bracket.--
       ``(A) In general.--With respect to taxable years beginning 
     after December 31, 2001, in prescribing the tables under 
     paragraph (1)--
       ``(i) the maximum taxable income in the 15-percent rate 
     bracket in the table contained in subsection (a) (and the 
     minimum taxable income in the next higher taxable income 
     bracket in such table) shall be 200 percent of the maximum 
     taxable income in the 15-percent rate bracket in the table 
     contained in subsection (c) (after any other adjustment under 
     this subsection), and
       ``(ii) the comparable taxable income amounts in the table 
     contained in subsection (d) shall be \1/2\ of the amounts 
     determined under clause (i).
       ``(B) Rounding.--If any amount determined under 
     subparagraph (A)(i) is not a multiple of $50, such amount 
     shall be rounded to the next lowest multiple of $50.''.
       (b) Technical Amendments.--
       (1) Subparagraph (A) of section 1(f )(2) of the Internal 
     Revenue Code of 1986 is amended by inserting ``except as 
     provided in paragraph (8),'' before ``by increasing''.
       (2) The heading for subsection (f ) of section 1 of such 
     Code is amended by inserting ``Elimination of Marriage 
     Penalty in 15-Percent Bracket;'' before ``Adjustments''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2001.

     SEC. __02. ELIMINATION OF MARRIAGE PENALTY IN STANDARD 
                   DEDUCTION.

       (a) In General.--Paragraph (2) of section 63(c) of the 
     Internal Revenue Code of 1986 (relating to standard 
     deduction) is amended--
       (1) by striking ``$5,000'' in subparagraph (A) and 
     inserting ``200 percent of the dollar

[[Page S251]]

     amount in effect under subparagraph (C) for the taxable 
     year'';
       (2) by adding ``or'' at the end of subparagraph (B);
       (3) by striking ``in the case of'' and all that follows in 
     subparagraph (C) and inserting ``in any other case.''; and
       (4) by striking subparagraph (D).
       (b) Technical Amendments.--
       (1) Subparagraph (B) of section 1(f )(6) of the Internal 
     Revenue Code of 1986 is amended by striking ``(other than 
     with'' and all that follows through ``shall be applied'' and 
     inserting ``(other than with respect to sections 63(c)(4) and 
     151(d)(4)(A)) shall be applied''.
       (2) Paragraph (4) of section 63(c) of such Code is amended 
     by adding at the end the following flush sentence:
     ``The preceding sentence shall not apply to the amount 
     referred to in paragraph (2)(A).''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2001.

     SEC. __03. CONFORMING AMENDMENTS.

       Sections 301 and 302 of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 are repealed.
                                  ____

  SA 2739. Mr. INHOFE submitted an amendment intended to be proposed by 
him to the bill H.R. 622, to amend the Internal Revenue Code of 1986 to 
expand the adoption credit, and for other purposes; which was ordered 
to lie on the table; as follows:

       At the end, add the following:

     SEC.  . SENSE OF THE SENATE.

       It is the sense of the Senate that the legislative 
     enactment of a Federal tax increase while the economy of the 
     United States is in a recessionary environment would be 
     harmful to the economy and may prolong such environment.
                                  ____

  SA 2740. Mr. GRAMM (for himself, Mr. Miller, Mr. Kyl, and Mrs. 
Hutchison) submitted an amendment intended to be proposed by him to the 
bill H.R. 622, to amend the Internal Revenue Code of 1986 to expand the 
adoption credit, and for other purposes; which was ordered to lie on 
the table; as follows:

       At the appropriate place insert the following:

     SEC.  . REPEAL OF SUNSET.

       (a) In General.--Title IX of the Economic Growth and Tax 
     Relief Reconciliation Act of 2001 is repealed.
       (b) Effective Date.--The repeal made by subsection (a) 
     shall take effect on and after the date of the enactment of 
     this Act.

     SEC.   . REDUCTION OF MAXIMUM CAPITAL GAINS RATES FOR 
                   INDIVIDUALS.

       (a) In General.--Section 1(h) of the Internal Revenue Code 
     of 1986 (relating to maximum capital gains rate) is amended 
     to read as follows:
       ``(h) Maximum Capital Gains Rate.--
       ``(1) In general.--If a taxpayer has a net capital gain for 
     any taxable year, the tax imposed by this section for such 
     taxable year shall not exceed the sum of--
       ``(A) a tax computed on taxable income reduced by the net 
     capital gain, at the rates and in the same manner as if this 
     subsection had not been enacted,
       ``(B) 7.5 percent of so much of the taxpayer's net capital 
     gain (or, if less, taxable income) as does not exceed the 
     excess (if any) of--
       ``(i) the amount of taxable income which would (without 
     regard to this paragraph) be taxed at a rate of 15 percent or 
     less, over
       ``(ii) the amount on which tax is determined under 
     subparagraph (A), plus
       ``(C) 15 percent of the taxpayer's net capital gain (or, if 
     less, taxable income) in excess of the amount of capital gain 
     on which tax is determined under subparagraph (B).
       ``(2) Net capital gain taken into account as investment 
     income.--For purposes of this subsection, the net capital 
     gain for any taxable year shall be reduced (but not below 
     zero) by the amount which the taxpayer elects to take into 
     account as investment income for the taxable year under 
     section 163(d)(4)(B)(iii).''.
       (b) Minimum Tax.--
       (1) In general.--Subparagraph (A) of section 55(b)(1) of 
     the Internal Revenue Code of 1986 (relating to amount of 
     tentative tax) is amended by redesignating clauses (ii) and 
     (iii) as clauses (iii) and (iv), respectively, and by 
     inserting after clause (i) the following new clause:
       ``(ii) Maximum rate of tax on net capital gain.--The amount 
     determined under the first sentence of clause (i) shall not 
     exceed the sum of--
       ``(I) the amount determined under such first sentence 
     computed at the rates and in the same manner as if this 
     clause had not been enacted on the taxable excess reduced by 
     the net capital gain, plus
       ``(II) a tax of 15 percent of the lesser of the net capital 
     gain or the taxable excess.''
       (2) Conforming amendment.--Section 55(b) of such Code is 
     amended by striking paragraph (3).
       (c) Conforming Amendments.--
       (1) Section 57(a)(7) of the Internal Revenue Code of 1986 
     is amended by striking the last sentence.
       (2) Paragraph (1) of section 1445(e) of such Code is 
     amended by striking 20 percent'' and inserting 15 percent''.
       (3)(A) The second sentence of section 7518(g)(6)(A) of such 
     Code is amended by striking 20 percent'' and inserting 15 
     percent''.
       (B) The second sentence of section 607(h)(6)(A) of the 
     Merchant Marine Act, 1936 is amended by striking 20 percent'' 
     and inserting 15 percent''.
       (d) Effective Dates.--
       (1) In general.--The amendments made by this section shall 
     apply to taxable years ending after December 31, 2001.
       (2) Withholding.--The amendment made by subsection (c)(2) 
     shall apply to amounts paid after the date of the enactment 
     of this Act.
                                  ____

  SA 2741. Mr. GRAMM (for himself, Mr. Miller, and Mrs. Hutchison) 
submitted an amendment intended to be proposed by him to the bill H.R. 
622, to amend the Internal Revenue Code of 1986 to expand the adoption 
credit, and for other purposes; which was ordered to lie on the table; 
as follows:

       At the appropriate place insert the following:

     SEC.  . REPEAL OF SUNSET.

       (a) In General.--Title IX of the Economic Growth and Tax 
     Relief Reconciliation Act of 2001 is repealed.
       (b) Effective Date.--The repeal made by subsection (a) 
     shall take effect on and after the date of the enactment of 
     this Act.
                                  ____

  SA 2742. Mr. GRAMM (for himself, Mr. Miller, and Mrs. Hutchison) 
submitted an amendment intended to be proposed by him to the bill H.R. 
622, to amend the Internal Revenue Code of 1986 to expand the adoption 
credit, and for other purposes; which was ordered to lie on the table; 
as follows:

       At the appropriate place insert the following:

     SEC.  . REPEAL OF SUNSET ON REDUCTION IN INCOME TAX RATES FOR 
                   INDIVIDUALS.

       (a) In General. Section 901(a) of the Economic Growth and 
     Tax Relief Reconciliation Act of 2001 is amended by striking 
     ``this Act'' and inserting ``this Act (other than section 
     101)''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on and after the date of the enactment of 
     this Act.
                                  ____

  SA 2743. Mr. GRAMM (for himself and Mrs. Hutchison) submitted an 
amendment intended to be proposed by him to the bill H.R. 622, to amend 
the Internal Revenue Code of 1986 to expand the adoption credit, and 
for other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place insert the following:

     SEC.   . PERMANENT REDUCTION OF CERTAIN MARGINAL RATES.

       Title IX of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 (Public Law 107-16) is repealed in 
     full and replaced by the following:

     ``SEC. 901. SUNSET OF PROVISIONS OF ACT.

       ``(a) the provisions of the table in Section 1(i)(2) of the 
     Internal Revenue Code of 1986 (as enacted in this Act) making 
     changes to the 39.6% tax rate shall not apply to taxable, 
     plan, or limitation years beginning after December 31, 2010.
       ``(b) All other provisions of, and amendments made by, this 
     Act (except the provisions of Section 101 of this Act), shall 
     not apply--
       ``(1) to taxable, plan, or limitation years beginning after 
     December 31, 2010, or
       ``(2) in the case of Title V, to estates of decedents 
     dying, gifts made, or generation skipping transfers, after 
     December 31, 2010.
       ``(c) Application of Certain Laws.--The Internal Revenue 
     Code of 1986 and the Employee Retirement Income Security Act 
     of 1974 shall be applied and administered to years, estates, 
     gifts, and transfers described in subsections (a) and (b) as 
     if the provisions and amendments described in those 
     subsections had never been enacted.
                                  ____

  SA 2744. Mr. GRAMM (for himself and Mrs. Hutchison) submitted an 
amendment intended to be proposed by him to the bill H.R. 622, to amend 
the Internal Revenue Code of 1986 to expand the adoption credit, and 
for other purposes; which was ordered to lie on the table; as follows:

       At the end, add the following:

     SEC.  . PERMANENT REDUCTION OF CERTAIN MARGINAL RATES.

       Title IX of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 (Public Law 107-16) is repealed in 
     full and replaced by the following:

     ``SEC. 901. SUNSET OF PROVISIONS OF ACT.

       ``(a) the provisions of the table in Section 1(i)(2) of the 
     Internal Revenue Code of 1986 (as enacted in this Act) making 
     changes to the 39.6% and 36% tax rates shall not apply to 
     taxable, plan, or limitation years beginning after December 
     31, 2010.
       ``(b) All other provisions of, and amendments made by, this 
     Act (except the provisions of Section 101 of this Act), shall 
     not apply--
       ``(1) to taxable, plan, or limitation years beginning after 
     December 31, 2010, or
       ``(2) in the case of Title V, to estates of decedents 
     dying, gifts made, or generation skipping transfers, after 
     December 31, 2010.

[[Page S252]]

       ``(c) Application of Certain Laws.--The Internal Revenue 
     Code of 1986 and the Employee Retirement Income Security Act 
     of 1974 shall be applied and administered to years, estates, 
     gifts, and transfers described in subsections (a) and (b) as 
     if the provisions and amendments described in those 
     subsections had never been enacted.
                                  ____

  SA 2745. Mr. GRAMM (for himself and Mrs. Hutchison) submitted an 
amendment intended to be proposed by him to the bill H.R. 622, to amend 
the Internal Revenue Code of 1986 to expand the adoption credit, and 
for other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place insert the following:

     SEC.  . PERMANENT REDUCTION OF CERTAIN MARGINAL RATES.

       Title IX of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 (Public Law 107-16) is repealed in 
     full and replaced by the following:

     ``SEC. 901. SUNSET OF PROVISIONS OF ACT.

       ``(a) the provisions of the table in Section 1(i)(2) of the 
     Internal Revenue Code of 1986 (as enacted in this Act) making 
     changes to the 39.6%, 36%, and 31% tax rates shall not apply 
     to taxable, plan, or limitation years beginning after 
     December 31, 2010.
       ``(b) All other provisions of, and amendments made by, this 
     Act (except the provisions of Section 101 of this Act), shall 
     not apply--
       ``(1) to taxable, plan, or limitation years beginning after 
     December 31, 2010, or
       ``(2) in the case of Title V, to estates of decedents 
     dying, gifts made, or generation skipping transfers, after 
     December 31, 2010.
       ``(c) Application of Certain Laws.--The Internal Revenue 
     Code of 1986 and the Employee Retirement Income Security Act 
     of 1974 shall be applied and administered to years, estates, 
     gifts, and transfers described in subsections (a) and (b) as 
     if the provisions and amendments described in those 
     subsections had never been enacted.
                                  ____

  SA 2746. Mr. GRAMM (for himself and Mrs. Hutchison) submitted an 
amendment intended to be proposed by him to the bill H.R. 622, to amend 
the Internal Revenue Code of 1986 to expand the adoption credit, and 
for other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place insert the following:

     SEC.  . PRESERVATION OF THE 10% BRACKET.

       Section 901 of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 is amended by striking ``this Act 
     shall not apply'' in subsection (a) and inserting ``this Act 
     (other than the provisions enacting Section 1(i)(1) of the 
     Internal Revenue Code of 1986) shall not apply.''
                                  ____

  SA 2747. Mr. GRAMM (for himself and Mrs. Hutchison) submitted an 
amendment intended to be proposed by him to the bill H.R. 622, to amend 
the Internal Revenue Code of 1986 to expand the adoption credit, and 
for other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place insert the following:

     SEC.   . ACCELERATED REDUCTION OF ALL MARGINAL TAX RATES.

       (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 the items relating to 2002, 2003, 2004, and 
     2005; and
       (2) by striking ``2006 and thereafter'' in the last item 
     and inserting ``2002 and thereafter''.
       (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, $56,000 in the case 
     of taxable years beginning in 2002 or 2003, $51,800 in the 
     case of taxable years beginning in 2004, and $50,600 in the 
     case of taxable years beginning in 2005)''.
       (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, $39,250 in the case 
     of taxable years beginning in 2002 or 2003, $37,150 in the 
     case of taxable years beginning in 2004, and $36,550 in the 
     case of taxable years beginning in 2005)''.
       (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.
                                  ____

  SA 2748. Mr. GRAMM submitted an amendment intended to be proposed by 
him to the bill H.R. 622, to amend the Internal Revenue Code of 1986 to 
expand the adoption credit, and for other purposes; which was ordered 
to lie on the table; as follows:

       At the appropriate place insert the following:

     SEC.   . 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, $50,700 in the 
     case of taxable years beginning in 2004, and $50,100 in the 
     case of taxable years beginning in 2005)''.
       (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, $36,600 in the 
     case of taxable years beginning in 2004, and $36,300 in the 
     case of taxable years beginning in 2005)''.
       (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.
                                  ____

  SA 2749. Mr. GRAMM (for himself, Mr. Miller, Mr. Kyl, and Mrs. 
Hutchison) submitted an amendment intended to be proposed to amendment 
SA 2698 submitted by Mr. Daschle and intended to be proposed to the 
bill (H.R. 622) to amend the Internal Revenue Code of 1986 to expand 
the adoption credit, and for other purposes; which was ordered to lie 
on the table; as follows:

       At the appropriate place insert the following:

     SEC.   . REPEAL OF SUNSET.

       (a) In General.--Title IX of the Economic Growth and Tax 
     Relief Reconciliation Act of 2001 is repealed.
       (b) Effective Date.--The repeal made by subsection (a) 
     shall take effect on and after the date of the enactment of 
     this Act.

     SEC.   . REDUCTION OF MAXIMUM CAPITAL GAINS RATES FOR 
                   INDIVIDUALS.

       (a) In General.--Section 1(h) of the Internal Revenue Code 
     of 1986 (relating to maximum capital gains rate) is amended 
     to read as follows:
       ``(h) Maximum Capital Gains Rate.--
       ``(1) In general.--If a taxpayer has a net capital gain for 
     any taxable year, the tax imposed by this section for such 
     taxable year shall not exceed the sum of--
       ``(A) a tax computed on taxable income reduced by the net 
     capital gain, at the rates and in the same manner as if this 
     subsection had not been enacted,
       ``(B) 7.5 percent of so much of the taxpayer's net capital 
     gain (or, if less, taxable income) as does not exceed the 
     excess (if any) of--
       ``(i) the amount of taxable income which would (without 
     regard to this paragraph be taxed at a rate of 15 percent or 
     less, over
       ``(ii) the amount on which tax is determined under 
     subparagraph (A), plus
       ``(C) 15 percent of the taxpayer's net capital gain (or, if 
     less, taxable income) in excess of the amount of capital gain 
     on which tax is determined under subparagraph (B).
       ``(2) Net capital gain taken into account as investment 
     income.--For purposes of this subsection, the net capital 
     gain for any taxable year shall be reduced (but not below 
     zero) by the amount which the taxpayer elects to take into 
     account as investment income for the taxable year under 
     section 163(d)(4)(B)(iii).''.
       (b) Minimum Tax.--
       (1) In general.--Subparagraph (A) of section 55(b)(1) of 
     the Internal Revenue Code of 1986 (relating to amount of 
     tentative tax) is amended by redesignating clauses (ii) and 
     (iii) as clauses (iii) and (iv), respectively, and by 
     inserting after clause (i) the following new clause:
       ``(ii) Maximum rate of tax on net capital gain.--The amount 
     determined under the first sentence of clause (i) shall not 
     exceed the sum of--
       ``(I) the amount determined under such first sentence 
     computed at the rates and in the same manner as if this 
     clause had not been enacted on the taxable excess reduced by 
     the net capital gain, plus
       ``(II) a tax of 15 percent of the lesser of the net capital 
     gain or the taxable excess.''
       (2) Conforming amendment.--Section 55(b) of such Code is 
     amended by striking paragraph (3).
       (c) Conforming Amendments.--
       (1) Section 57(a)(7) of the Internal Revenue Code of 1986 
     is amended by striking the last sentence.
       (2) Paragraph (1) of section 1445(e) of such Code is 
     amended by striking ``20 percent'' and inserting ``15 
     percent''.
       (3) (A) The second sentence of section 7518(g)(6)(A) of 
     such Code is amended by striking ``20 percent'' and inserting 
     ``15 percent''.

[[Page S253]]

       (B) The second sentence of section 607(h)(6)(A) of the 
     Merchant Marine Act, 1936 is amended by striking ``20 
     percent'' and inserting ``15 percent''.
       (d) Effective Dates.--
       (1) In general.--The amendments made by this section shall 
     apply to taxable years ending after December 31, 2001.
       (2) Withholding.--The amendment made by subsection (c)(2) 
     shall apply to amounts paid after the date of the enactment 
     of this Act.
                                  ____

  SA 2750. Mr. GRAMM (for himself, Mr. Miller, and Mrs. Hutchison) 
submitted an amendment intended to be proposed to amendment SA 2698 
submitted by Mr. Daschle and intended to be proposed to the bill (H.R. 
622) to amend the Internal Revenue Code of 1986 to expand the adoption 
credit, and for other purposes; which was ordered to lie on the table; 
as follows:

       At the appropriate place insert the following:

     SEC.  . REPEAL OF SUNSET.

       (A) In General.--Title IX of the Economic Growth and Tax 
     Relief Reconciliation Act of 2001 is repealed.
       (b) Effective Date.--The repeal made by subsection (a) 
     shall take effect on and after the date of the enactment of 
     this Act.
                                  ____

  SA 2751. Mr. GRAMM (for himself, Mr. Miller, and Mrs. Hutchison) 
submitted an amendment intended to be proposed to amendment SA 2698 
submitted by Mr. Daschle and intended to be proposed to the bill (H.R. 
622) to amend the Internal Revenue Code of 1986 to expand the adoption 
credit, and for other purposes; which was ordered to lie on the table; 
as follows:

       At the appropriate place insert the following:

     SEC.  . REPEAL OF SUNSET ON REDUCTION IN COME TAX RATES FOR 
                   INDIVIDUALS.

       (a) In General.--Section 901(a) of the Economic Growth and 
     Tax Relief Reconciliation Act of 2001 is amended by striking 
     ``this Act'' and inserting ``this Act (other than section 
     101)''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effective on and after the date of the enactment 
     of this Act.
                                  ____

  SA 2752. Mr. GRAMM (for himself and Mrs. Hutchison) submitted by Mr. 
Daschle and intended to be proposed to the bill (H.R. 622) to amend the 
Internal Revenue Code of 1986 to expand the adoption credit, and for 
other purposes; which was ordered to lie on the table; as follows:
                                  ____

       At the appropriate place insert the following:

     SEC.   . PERMANENT REDUCTION OF CERTAIN MARGINAL RATES.

       Title IX of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 (Public Law 107-16) is repealed in 
     full and replaced by the following:

     ``SEC. 901. SUNSET OF PROVISIONS OF ACT.

       ``(a) the provisions of the table in Section 1(i)(2) of the 
     Internal Revenue Code of 1986 (as enacted in this Act) making 
     changes to the 39.6% tax rate shall not apply to taxable, 
     plan, or limitation years beginning after December 31, 2010.
       ``(b) All other provisions of, and amendments made by, this 
     Act (except the provisions of Section 101 of this Act), shall 
     not apply--
       ``(1) to taxable, plan, or limitation years beginning after 
     December 31, 2010, or
       ``(2) in the case of Title V, to estates of decedents 
     dying, gifts made, or generation skipping transfers, after 
     December 31, 2010.
       ``(c) Application of Certain Laws.--The Internal Revenue 
     Code of 1986 and the Employee Retirement Income Security Act 
     of 1974 shall be applied and administered to years, estates, 
     gifts, and transfers described in subsections (a) and (b) as 
     if the provisions and amendments described in those 
     subsections had never been enacted.
                                  ____

  SA 2753. Mr. GRAMM (for himself, and Mrs. Hutchison) submitted an 
amendment intended to be proposed to amendment SA 2698 submitted by Mr. 
Daschle and intended to be proposed to the bill (H.R. 622) to amend the 
Internal Revenue Code of 1986 to expand the adoption credit, and for 
other purposes, which was ordered to lie on the table; as follows:

       At the appropriate place insert the following:

     SEC.   . PERMANENT REDUCTION OF CERTAIN MARGINAL RATES.

       Title IX of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 (Public Law 107-16) is repealed in 
     full and replaced by the following:

     ``SEC. 901. SUNSET OF PROVISIONS OF ACT.

       ``(a) the provisions of the table in Section 1(i)(2) of the 
     Internal Revenue Code of 1986 (as enacted in this Act) making 
     changes to the 39.6% and 36% tax rates shall not apply to 
     taxable, plan, or limitation years beginning after December 
     31, 2010.
       ``(b) All other provisions of, and amendments made by, this 
     Act (except the provisions of Section 101 of this Act), shall 
     not apply--
       ``(1) to taxable, plan, or limitation years beginning after 
     December 31, 2010, or
       ``(2) in the case of Title V, to estates of decedents 
     dying, gifts made, or generation skipping transfers, after 
     December 31, 2010.
       ``(c) Application of Certain Laws.--The Internal Revenue 
     Code of 1986 and the Employment Retirement Income Security 
     Act of 1974 shall be applied and administered to years, 
     estates, gifts, and transfers described in subsections (a) 
     and (b) as if the provisions and amendments described in 
     those subsections had never been enacted.
                                  ____

  SA 2754. Mr. GRAMM (for himself, and Mrs. Hutchison) submitted an 
amendment intended to be proposed to amendment SA 2698 submitted by Mr. 
Daschle and intended to be proposed to the bill (H.R. 622) to amend the 
Internal Revenue Code of 1986 to expand the adoption credit, and for 
other purposes, which was ordered to lie on the table; as follows:

       At the appropriate place insert the following:

     SEC.   . PERMANENT REDUCTION OF CERTAIN MARGINAL RATES.

       Title IX of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 (Public Law 107-16) is repealed in 
     full and replaced by the following:

     ``SEC. 901. SUNSET OF PROVISIONS OF ACT.

       ``(a) the provisions of the table in Section 1(i)(2) of the 
     Internal Revenue Code of 1986 (as enacted in this Act) making 
     changes to the 39.6% and 36% tax rates shall not apply to 
     taxable, plan, or limitation years beginning after December 
     31, 2010.
       ``(b) All other provisions of, and amendments made by, this 
     Act (except the provisions of Section 101 of this Act), shall 
     not apply--
       ``(1) to taxable, plan, or limitation years beginning after 
     December 31, 2010, or
       ``(2) in the case of Title V, to estates of decedents 
     dying, gifts made, or generation skipping transfers, after 
     December 31, 2010.
       ``(c) Application of Certain Laws.--The Internal Revenue 
     Code of 1986 and the Employment Retirement Income Security 
     Act of 1974 shall be applied and administered to years, 
     estates, gifts, and transfers described in subsections (a) 
     and (b) as if the provisions and amendments described in 
     those subsections had never been enacted.
                                  ____

  SA 2755. Mr. GRAMM (for himself and Mrs. Hutchison) submitted an 
amendment intended to be proposed to amendment SA 2698 submitted by Mr. 
Daschle and intended to be proposed to the bill (H.R. 622) to amend the 
Internal Revenue Code of 1986 to expand the adoption credit, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end, appropriate place insert the following:

     SEC.  . PRESERVATION OF THE 10% BRACKET.

       Section 901 of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 is amended by striking ``this Act 
     shall not apply'' in subsection (a) and inserting ``this Act 
     (other than the provisions enacting Section 1(i)(1) of the 
     Internal Revenue Code of 1986) shall not apply''.
                                  ____

  SA 2756. Mr. GRAMM (for himself and Mrs. Hutchison) submitted an 
amendment intended to be proposed to amendment SA 2698 submitted by Mr. 
Daschle and intended to be proposed to the bill (H.R. 622) to amend the 
Internal Revenue Code of 1986 to expand the adoption credit, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place insert the following:

     SEC.   . ACCELERATED REDUCTION OF ALL MARGINAL TAX RATES.

       (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 the items relating to 2002, 2003, 2004, and 
     2005; and
       (2) by striking ``2006 and thereafter'' in the last item 
     and inserting ``2002 and thereafter''.
       (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, $56,000 in the case 
     of taxable years beginning in 2002 and 2003, $51,800 in the 
     case of taxable years beginning in 2004, and $50,600 in the 
     case of taxable years beginning in 2005)''.
       (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, $39,250 in the case 
     of taxable years beginning in 2002 or 2003, $37,150 in the 
     case of taxable years beginning in 2004, and $36,550 in the 
     case of taxable years beginning in 2005)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2001.

[[Page S254]]

       (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.
                                  ____

  SA 2757. Mr. GRAMM (for himself and Mrs. Hutchison) submitted an 
amendment intended to be proposed to amendment SA 2698 submitted by Mr. 
Daschle and intended to be proposed to the bill (H.R. 622) to amend the 
Internal Revenue Code of 1986 to expand the adoption credit, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place insert the following:

     SEC.  . 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, $50,700 in the 
     case of taxable years beginning in 2004, and $50,100 in the 
     case of taxable years beginning in 2005)''.
       (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, $36,600 in the 
     case of taxable years beginning in 2004, and $36,300 in the 
     case of taxable years beginning in 2005)''.
       (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 rate of tax for 
     purposes of section 15 of the Internal Revenue Code of 1986.
                                  ____

  SA 2758. Mr. KYL (for himself, Mr. Gramm, Mr. Ensign, Mr. Nickles, 
and Mr. Hutchinson) proposed an amendment to amendment SA 2698 
submitted by Mr. Daschle and intended to be proposed to the bill (H.R. 
622) to amend the Internal Revenue Code of 1986 to expand the adoption 
credit, and for other purposes; as follows:

       At the end, add the following:

     SEC.   . PERMANENT REPEAL OF ESTATE TAXES.

       Section 901 of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 is amended--
       (1) by striking ``this Act'' and all that follows through 
     ``2010.'' in subsection (a) and inserting ``this Act (other 
     than title V) shall not apply to taxable, plan, or limitation 
     years beginning after December 31, 2010.'', and
       (2) by striking ``, estates, gifts, and transfers'' in 
     subsection (b).
                                  ____

  SA 2759. Mrs. HUTCHISON (for Herself and Mr. Grassley) submitted an 
amendment intended to be proposed by her to the bill (H.R. 622) to 
amend the Internal Revenue Code of 1986 to expand the adoption credit, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end, add the following:

     SEC.  . 2-YEAR EXTENSION OF CREDIT FOR PRODUCING ELECTRICITY 
                   FROM WIND.

       Section 45(c)(3)(A) of the Internal Revenue Code of 1986 
     (relating to wind facility) is amended by striking ``January 
     1, 2002'' and inserting``January 1, 2004''.
                                  ____

  SA 2760. Ms. COLLINS (for herself Mr. Warner, and Ms. Landrieu) 
submitted an amendment intended to be proposed by her to the bill H.R. 
622 to amend the Internal Revenue Code of 1986 to expand the adoption 
credit, and for other purposes; which was ordered to lie on the table; 
as follows:

       At the appropriate place, insert the following:

     SEC. __. 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.--The deductions allowed by section 162 which 
     consist of expenses, not in excess of $1,000, paid or 
     incurred by an eligible educator--
       ``(i) by reason of the participation of the educator in 
     professional development courses related to the curriculum 
     and academic subjects in which the educator provides 
     instruction or to the students for which the educator 
     provides instruction, and
       ``(ii) 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 in calendar years 2002 
     and 2003.
                                  ____

  SA 2761. Ms. COLLINS (for herself, Mr. Warner, and Ms. Landrieu) 
submitted an amendment intended to be proposed by her to the bill H.R. 
622, to amend the Internal Revenue Code of 1986 to expand the adoption 
credit, and for other purposes; which was ordered to lie on the table; 
as follows:
       At the appropriate place, insert the following:

     SEC. __. 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.

                          ____________________