[Congressional Record Volume 148, Number 8 (Wednesday, February 6, 2002)]
[Senate]
[Pages S426-S431]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 2814. Mr. BOND submitted an amendment intended to be proposed to 
amendment SA 2773 submitted by Mr. Grassley 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, add the following:

[[Page S427]]

     SEC. __. MODIFICATION OF UNRELATED BUSINESS INCOME LIMITATION 
                   ON INVESTMENT IN CERTAIN DEBT-FINANCED 
                   PROPERTIES.

       (a) In General.--Section 514(c)(6) of the Internal Revenue 
     Code of 1986 (relating to acquisition indebtedness) is 
     amended--
       (1) by striking ``include an obligation'' and inserting 
     ``include--
       ``(A) an obligation'',
       (2) by striking the period at the end and inserting ``, 
     or'', and
       (3) by adding at the end the following:
       ``(B) indebtedness incurred by a small business investment 
     company licensed under the Small Business Investment Act of 
     1958 which is evidenced by a debenture--
       ``(i) issued by such company under section 303(a) of such 
     Act, or
       ``(ii) held or guaranteed by the Small Business 
     Administration.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to acquisitions made on or after the date of the 
     enactment of this Act.
                                  ____

  SA 2815. Mr. BOND submitted an amendment intended to be proposed to 
amendment SA 2773 submitted by Mr. Grassley 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, add the following:

     SEC. __. TREATMENT OF CERTAIN INDIVIDUALS PERFORMING SERVICES 
                   IN CERTAIN HAZARDOUS DUTY AREAS.

       (a) General Rule.--For purposes of the following provisions 
     of the Internal Revenue Code of 1986, a qualified hazardous 
     duty area shall be treated in the same manner as if it were a 
     combat zone (as determined under section 112 of such Code):
       (1) Section 2(a)(3) (relating to special rule where 
     deceased spouse was in missing status).
       (2) Section 112 (relating to the exclusion of certain 
     combat pay of members of the Armed Forces).
       (3) Section 692 (relating to income taxes of members of 
     Armed Forces and victims of certain terrorist attacks on 
     death).
       (4) Section 2201 (relating to combat zone-related deaths of 
     members of the Armed Forces and deaths of victims of certain 
     terrorist attacks).
       (5) Section 3401(a)(1) (defining wages relating to combat 
     pay for members of the Armed Forces).
       (6) Section 4253(d) (relating to the taxation of phone 
     service originating from a combat zone from members of the 
     Armed Forces).
       (7) Section 6013(f)(1) (relating to joint return where 
     individual is in missing status).
       (8) Section 7508 (relating to time for performing certain 
     acts postponed by reason of service in combat zone).
       (b) Qualified Hazardous Duty Area.--For purposes of this 
     section, the term ``qualified hazardous duty area'' means 
     Somalia, if for the period beginning on December 3, 1992, and 
     ending before March 31, 1995, any member of the Armed Forces 
     of the United States was entitled to special pay under 
     section 310 of title 37, United States Code (relating to 
     special pay; duty subject to hostile fire or imminent danger) 
     for services performed in such country. Such term includes 
     such country only during the period such entitlement was in 
     effect.
       (c) Effective Date; Special Rule.--
       (1) Effective date.--The provisions of this section shall 
     take effect on the date of the enactment of this Act.
       (2) Special rule.--If refund or credit of any overpayment 
     of tax resulting from the application of this section is 
     prevented at any time on or before April 15, 2003, by the 
     operation of any law or rule of law (including res judicata), 
     refund or credit of such overpayment (to the extent 
     attributable to the application of this section) may, 
     nevertheless, be made or allowed if claim therefor is filed 
     on or before April 15, 2003.
                                  ____

  SA 2816. Mr. SESSIONS submitted an amendment intended to be proposed 
to amendment SA 2773 submitted by Mr. Grassley 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 subtitle A of title VI of the amendment, add 
     the following:

     SEC. __. 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. __. 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.

     SEC. __. 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 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. __. 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. __. 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. __. 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.

[[Page S428]]

       ``(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.
                                  ____

  SA 2817. Mr. SESSIONS submitted an amendment intended to be proposed 
to amendment SA 2773 submitted by Mr. Grassley 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:

       Add at the end of subtitle A of title VI of the amendment, 
     add the following:

     SEC. __. 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. __. 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.
                                  ____

  SA 2818. Mr. DeWINE (for himself, Ms. Collins, Mr. Cleland, Mrs. 
Carnaham, Mr. Thurmond, Mr. Miller, Mr. Helms, and Mr. McCain) 
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:

            TITLE __--RELIEF FOR RESERVE COMPONENT PERSONNEL

     SEC. __01. DEDUCTION OF CERTAIN EXPENSES OF MEMBERS OF THE 
                   RESERVE COMPONENT.

       (a) Deduction Allowed.--Section 162 of the Internal Revenue 
     Code of 1986 (relating to certain trade or business expenses) 
     is amended by redesignating subsection (p) as subsection (q) 
     and inserting after subsection (o) the following new 
     subsection:
       ``(p) Treatment of Expenses of Members of Reserve Component 
     of Armed Forces of the United States.--For purposes of 
     subsection (a), in the case of an individual who performs 
     services as a member of a reserve component of the Armed 
     Forces of the United States at any time during the taxable 
     year, such individual shall be deemed to be away from home in 
     the pursuit of a trade or business during any period for 
     which such individual is away from home in connection with 
     such service.''.
       (b) Deduction Allowed Whether or Not Taxpayer Elects To 
     Itemize.--Section 62(a)(2) of the Internal Revenue Code of 
     1986 (relating to certain trade and business deductions of 
     employees) is amended by adding at the end the following new 
     subparagraph:
       ``(D) Certain expenses of members of reserve components of 
     the armed forces of the united states.--The deductions 
     allowed by section 162 which consist of expenses paid or 
     incurred by the taxpayer in connection with the performance 
     of services by such taxpayer as a member of a reserve 
     component of the Armed Forces of the United States.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred in taxable years 
     beginning after December 31, 2001.

     SEC. __02. CREDIT FOR EMPLOYMENT OF RESERVE COMPONENT 
                   PERSONNEL.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     business-related credits) is amended by adding at the end the 
     following new section:

     ``SEC. 45G. RESERVE COMPONENT EMPLOYMENT CREDIT.

       ``(a) General Rule.--For purposes of section 38, the 
     reserve component employment credit determined under this 
     section is an amount equal to the sum of--
       ``(1) the employment credit with respect to all qualified 
     employees of the taxpayer, plus
       ``(2) the self-employment credit of a qualified self-
     employed taxpayer.
       ``(b) Employment Credit.--For purposes of this section--
       ``(1) In general.--The employment credit with respect to a 
     qualified employee of the taxpayer for any taxable year is 
     equal to 50 percent of the amount of qualified compensation 
     that would have been paid to the employee with respect to all 
     periods during which the employee participates in qualified 
     reserve component duty to the exclusion of normal employment 
     duties, including time spent in a travel status had the 
     employee not been participating in qualified reserve 
     component duty. The employment credit, with respect to all 
     qualified employees, is equal to the sum of the employment 
     credits for each qualified employee under this subsection.
       ``(2) Qualified compensation.--When used with respect to 
     the compensation paid or that would have been paid to a 
     qualified employee for any period during which the employee 
     participates in qualified reserve component duty, the term 
     `qualified compensation' means compensation--
       ``(A) which is normally contingent on the employee's 
     presence for work and which would be deductible from the 
     taxpayer's gross income under section 162(a)(1) if the 
     employee were present and receiving such compensation, and
       ``(B) which is not characterized by the taxpayer as 
     vacation or holiday pay, or as sick leave or pay, or as any 
     other form of pay for a nonspecific leave of absence, and 
     with respect to which the number of days the employee 
     participates in qualified reserve component duty does not 
     result in any reduction in the amount of vacation time, 
     sick leave, or other nonspecific leave previously credited 
     to or earned by the employee.
       ``(3) Qualified employee.--The term `qualified employee' 
     means a person who--
       ``(A) has been an employee of the taxpayer for the 21-day 
     period immediately preceding the period during which the 
     employee participates in qualified reserve component duty, 
     and
       ``(B) is a member of the Ready Reserve of a reserve 
     component of an Armed Force of the United States as defined 
     in sections 10142 and 10101 of title 10, United States Code.
       ``(c) Self-Employment Credit.--
       ``(1) In general.--The self-employment credit of a 
     qualified self-employed taxpayer for any taxable year is 
     equal to 50 percent of the excess, if any, of--
       ``(A) the self-employed taxpayer's average daily self-
     employment income for the taxable year over
       ``(B) the average daily military pay and allowances 
     received by the taxpayer during the taxable year, while 
     participating in qualified reserve component duty to the 
     exclusion of the taxpayer's normal self-employment duties for 
     the number of days the taxpayer participates in qualified 
     reserve component duty during the taxable year, including 
     time spent in a travel status.
       ``(2) Average daily self-employment income and average 
     daily military pay and

[[Page S429]]

     allowances.--As used with respect to a self-employed 
     taxpayer--
       ``(A) the term `average daily self-employment income' means 
     the self-employment income (as defined in section 1402) of 
     the taxpayer for the taxable year divided by the difference 
     between--
       ``(i) 365, and
       ``(ii) the number of days the taxpayer participates in 
     qualified reserve component duty during the taxable year, 
     including time spent in a travel status, and
       ``(B) the term `average daily military pay and allowances' 
     means--
       ``(i) the amount paid to the taxpayer during the taxable 
     year as military pay and allowances on account of the 
     taxpayer's participation in qualified reserve component duty, 
     divided by
       ``(ii) the total number of days the taxpayer participates 
     in qualified reserve component duty, including time spent in 
     travel status.
       ``(3) Qualified self-employed taxpayer.--The term 
     `qualified self-employed taxpayer' means a taxpayer who--
       ``(A) has net earnings from self-employment (as defined in 
     section 1402) for the taxable year, and
       ``(B) is a member of the Ready Reserve of a reserve 
     component of an Armed Force of the United States.
       ``(d) Credit In Addition to Deduction.--The employment 
     credit provided in this section is in addition to any 
     deduction otherwise allowable with respect to compensation 
     actually paid to a qualified employee during any period the 
     employee participates in qualified reserve component duty to 
     the exclusion of normal employment duties.
       ``(e) Limitations.--
       ``(1) Maximum credit.--
       ``(A) In general.--The credit allowed by subsection (a) for 
     the taxable year--
       ``(i) shall not exceed $7,500 in the aggregate, and
       ``(ii) shall not exceed $2,000 with respect to each 
     qualified employee.
       ``(B) Controlled groups.--For purposes of applying the 
     limitations in subparagraph (A)--
       ``(i) all members of a controlled group shall be treated as 
     one taxpayer, and
       ``(ii) such limitations shall be allocated among the 
     members of such group in such manner as the Secretary may 
     prescribe.
     For purposes of this subparagraph, all persons treated as a 
     single employer under subsection (a) or (b) of section 52 or 
     subsection (m) or (o) of section 414 shall be treated as 
     members of a controlled group.
       ``(2) Disallowance for failure to comply with employment or 
     reemployment rights of members of the reserve components of 
     the armed forces of the united states.--No credit shall be 
     allowed under subsection (a) to a taxpayer for--
       ``(A) any taxable year in which the taxpayer is under a 
     final order, judgment, or other process issued or required by 
     a district court of the United States under section 4323 of 
     title 38 of the United States Code with respect to a 
     violation of chapter 43 of such title, and
       ``(B) the two succeeding taxable years.
       ``(3) Disallowance with respect to persons ordered to 
     active duty for training.--No credit shall be allowed under 
     subsection (a) to a taxpayer with respect to any period for 
     which the person on whose behalf the credit would otherwise 
     be allowable is called or ordered to active duty for any of 
     the following types of duty:
       ``(A) active duty for training under any provision of title 
     10, United States Code,
       ``(B) training at encampments, maneuvers, outdoor target 
     practice, or other exercises under chapter 5 of title 32, 
     United States Code, or
       ``(C) full-time National Guard duty, as defined in section 
     101(d)(5) of title 10, United States Code.
       ``(f) General Definitions and Special Rules.--
       ``(1) Military pay and allowances.--The term `military pay' 
     means pay as that term is defined in section 101(21) of title 
     37, United States Code, and the term `allowances' means the 
     allowances payable to a member of the Armed Forces of the 
     United States under chapter 7 of that title.
       ``(2) Qualified reserve component duty.--The term 
     `qualified reserve component duty' includes only active duty 
     performed, as designated in the reservist's military orders, 
     in support of a contingency operation as defined in section 
     101(a)(13) of title 10, United States Code.
       ``(3) Normal employment and self-employment duties.--A 
     person shall be deemed to be participating in qualified 
     reserve component duty to the exclusion of normal employment 
     or self-employment duties if the person does not engage in or 
     undertake any substantial activity related to the person's 
     normal employment or self-employment duties while 
     participating in qualified reserve component duty unless in 
     an authorized leave status or other authorized absence from 
     military duties. If a person engages in or undertakes any 
     substantial activity related to the person's normal 
     employment or self-employment duties at any time while 
     participating in a period of qualified reserve component 
     duty, unless during a period of authorized leave or other 
     authorized absence from military duties, the person shall be 
     deemed to have engaged in or undertaken such activity for the 
     entire period of qualified reserve component duty.
       ``(4) Certain rules to apply.--Rules similar to the rules 
     of subsections (c), (d), and (e) of section 52 shall apply 
     for purposes of this section.''.
       (b) Conforming Amendment.--Section 38(b) of the Internal 
     Revenue Code of 1986 (relating to general business credit) is 
     amended--
       (1) by striking ``plus'' at the end of paragraph (14),
       (2) by striking the period at the end of paragraph (15) and 
     inserting ``, plus'', and
       (3) by adding at the end the following new paragraph:
       ``(16) the reserve component employment credit determined 
     under section 45G(a).''.
       (c) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 of the Internal 
     Revenue Code of 1986 is amended by inserting after the item 
     relating to section 45F the following new item:

``Sec. 45G. Reserve component employment credit.''.

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

  SA 2819. Mr. DASCHLE proposed an amendment 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:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Temporary 
     Extended Unemployment Compensation Act of 2002''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Federal-State agreements.
Sec. 3. Temporary extended unemployment compensation account.
Sec. 4. Payments to States having agreements under this Act.
Sec. 5. Financing provisions.
Sec. 6. Fraud and overpayments.
Sec. 7. Definitions.
Sec. 8. Applicability.

     SEC. 2. FEDERAL-STATE AGREEMENTS.

       (a) In General.--Any State which desires to do so may enter 
     into and participate in an agreement under this Act with the 
     Secretary of Labor (in this Act referred to as the 
     ``Secretary''). Any State which is a party to an agreement 
     under this Act 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 
     Act, 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 Act--
       (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

[[Page S430]]

     apply to claims for temporary extended unemployment 
     compensation and the payment thereof, except where 
     inconsistent with the provisions of this Act or with the 
     regulations or operating instructions of the Secretary 
     promulgated to carry out this Act; 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 3 shall not exceed the amount established in 
     such account for such individual.

     SEC. 3. TEMPORARY EXTENDED UNEMPLOYMENT COMPENSATION ACCOUNT.

       (a) In General.--Any agreement under this Act 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 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. 4. PAYMENTS TO STATES HAVING AGREEMENTS UNDER THIS ACT.

       (a) General Rule.--There shall be paid to each State that 
     has entered into an agreement under this Act 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 Act 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 Act 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 Act.

     SEC. 5. 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 4(a)) to 
     States having agreements entered into under this Act.
       (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 4(a) which are payable to 
     such State under this Act. 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. 6. 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 Act to which 
     such individual was not entitled, such individual--
       (1) shall be ineligible for any further benefits under this 
     Act 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 Act 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 Act 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. 7. DEFINITIONS.

       In this Act, 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. 8. APPLICABILITY.

       An agreement entered into under this Act 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.
                                  ____

  SA 2820. Mr. LEVIN (for Mr. Daschle) proposed an amendment 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:

       Amend the title as to read:
       ``A bill to provide for temporary unemployment 
     compensation.''
                                  ____

  SA 2821. Mr. DURBIN (for himself, Mr. Lugar, Mr. Bingaman, Mr. 
Domenici, Mr. Graham, Mr. Wellstone, Mr. Kerry, and Mr. Smith of 
Oregon) proposed an amendment to amendment SA 2471 submitted by Mr. 
Daschle and intended to be proposed to the bill (S. 1731) to strength 
the safety net for agricultural producers, to enhance resource 
conservation and rural development, to provide for farm credit, 
agricultural research, nutrition, and related programs, to ensure 
consumers abundant food and fiber, and for other purposes; as follows:

       On page 128, line 8, strike the period at the end and 
     insert a period and the following:

     SEC. 166. RESTRICTION OF COMMODITY AND CROP INSURANCE 
                   PAYMENTS, LOANS, AND BENEFITS TO PREVIOUSLY 
                   CROPPED LAND; FOOD STAMP PROGRAM FOR CERTAIN 
                   QUALIFIED ALIENS.

       (a) Restriction of Commodity and Crop Insurance Payments, 
     Loans, and Benefits to Previously Cropped Land.--Section 194 
     of the Federal Agriculture Improvement and Reform Act of 1996 
     (Public Law 104-127; 110 Stat. 945) is amended to read as 
     follows:

     ``SEC. 194. RESTRICTION OF COMMODITY AND CROP INSURANCE 
                   PAYMENTS, LOANS, AND BENEFITS TO PREVIOUSLY 
                   CROPPED LAND.

       ``(a) Definition of Agricultural Commodity.--In this 
     section:
       ``(1) In general.--The term `agricultural commodity' has 
     the meaning given the term in section 102 of the Agricultural 
     Trade Act of 1978 (7 U.S.C. 5602).
       ``(2) Exclusions.--The term `agricultural commodity' does 
     not include forage, livestock, timber, forest products, or 
     hay.
       ``(b) Commodities.--
       ``(1) In general.--Notwithstanding any other provision of 
     this title, except as provided in paragraph (2), the 
     Secretary shall not provide a crop payment, crop loan, or 
     other crop benefit under this title to an owner or producer, 
     with respect to an agricultural commodity produced on land 
     during a crop year unless the land has been planted, 
     considered planted, or devoted to an agricultural commodity 
     during--
       ``(A) at least 1 of the 5 crop years preceding the 2002 
     crop year; or
       ``(B) at least 3 of the 10 crop years preceding the 2002 
     crop year.
       ``(2) Crop rotation.--Paragraph (1) shall not apply to an 
     owner or producer, with respect to any agricultural commodity 
     planted or considered planted, on land if the land--
       ``(A) has been planted, considered planted, or devoted to 
     an agricultural commodity during at least 1 of the 20 crop 
     years preceding the 2002 crop year; and

[[Page S431]]

       ``(B) has been maintained, and will continue to be 
     maintained, using long-term crop rotation practices, as 
     determined by the Secretary.
       ``(c) Crop Insurance.--Notwithstanding any provision of the 
     Federal Crop Insurance Act (7 U.S.C. 1501 et seq.), the 
     Federal Crop Insurance Corporation shall not pay premium 
     subsidies or administrative costs of a reinsured company for 
     insurance regarding a crop insurance policy of a producer 
     under that Act unless the land that is covered by the 
     insurance policy for an agricultural commodity--
       ``(1) has been planted, considered planted, or devoted to 
     an agricultural commodity during--
       ``(A) at least 1 of the 5 crop years preceding the 2002 
     crop year; or
       ``(B) at least 3 of the 10 crop years preceding the 2002 
     crop year; or
       ``(2)(A) has been planted, considered planted, or devoted 
     to an agricultural commodity during at least 1 of the 20 crop 
     years preceding the 2002 crop year; and
       ``(B) has been maintained, and will continue to be 
     maintained, using long-term crop rotation practices, as 
     determined by the Secretary.
       ``(d) Conservation Reserve Land.--For purposes of this 
     section, land that is enrolled in the conservation reserve 
     program established under subchapter B of chapter 1 of 
     subtitle D of title XII of the Food Security Act of 1985 (16 
     U.S.C.3831 et seq.) shall be considered planted to an 
     agricultural commodity.
       ``(e) Land Under the Jurisdiction of an Indian Tribe.--For 
     purposes of this section, land that is under the jurisdiction 
     of an Indian tribe (as defined in section 4 of the Indian 
     Self-Determination and Education Assistance Act (25 U.S.C. 
     450b)) shall be considered planted to an agricultural 
     commodity if--
       ``(1) the land is planted to an agricultural commodity 
     after the date of enactment of this subsection as part of an 
     irrigation project that--
       ``(A) is authorized by the Bureau of Reclamation or the 
     Bureau of Indian Affairs; and
       ``(B) is under construction prior to the date of enactment 
     of this subsection; or
       ``(2) the land becomes available for planting because of a 
     settlement or statutory authorization of a water rights claim 
     by an Indian tribe after the date of enactment of this 
     subsection.''.
       (b) Partial Restoration of Benefits to Legal Immigrants.--
     Section 403(c)(2)(L) of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996 (8 U.S.C. 
     1613(c)(2)(L)) (as amended by section 452(a)(2)(A)) is 
     amended by inserting ``provided to individuals under the age 
     of 18'' after ``benefits''.
       (c) Food Stamp Exception for Certain Qualified Aliens.--
       (1) In general.--Section 402(a)(2) of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996 (8 U.S.C. 1612(a)(2)) (as amended by section 452(c)(2)) 
     is amended by adding at the end the following:
       ``(M) Food stamp exception for certain qualified aliens.--
     With respect to eligibility for benefits for the specified 
     Federal program described in paragraph (3)(B), paragraph (1) 
     shall not apply to any individual who has continuously 
     resided in the United States as a qualified alien for a 
     period of 5 years or more beginning on the date on which the 
     qualified alien entered the United States.''.
       (2) Effective date.--The amendment made by paragraph (1) 
     takes effect on April 1, 2003.
                                  ____

  SA 2822. Mr. HELMS submitted an amendment intended to be proposed to 
amendment SA 2471 submitted by Mr. Daschle and intended to be proposed 
to the bill (S. 1731) to strengthen the safety net for agricultural 
producers, to enhance resource conservation and rural development, to 
provide for farm credit, agricultural research, nutrition, and related 
programs, to ensure consumers abundant food and fiber, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 945, strike lines 6 and 7 and insert the following:

     SEC. 1024. DEFINITION OF ANIMAL UNDER THE ANIMAL WELFARE ACT.

       Section 2(g) of the Animal Welfare Act (7 U.S.C. 2132(g)) 
     is amended by striking ``excludes horses not used for 
     research purposes and'' and inserting the following:

     ``excludes birds, rats of the genus Rattus, and mice of the 
     genus Mus bred for use in research, horses not used for 
     research purposes, and''.

     SEC. 1025. PENALTIES AND FOREIGN COMMERCE PROVISIONS OF THE 
                   ANIMAL WELFARE ACT.
                                  ____


  SA 2823. Mr. REID (for Ms. Landrieu) proposed an amendment to the 
bill H.R. 586, to amend the Internal Revenue Code of 1986 to provide 
that the exclusion from gross income for foster care payments shall 
also apply to payments by qualified placement agencies, and for other 
purposes; as follows:

       At the appropriate place, insert the following:

     SEC.   . ACCELERATION OF EFFECTIVE DATE FOR EXPANSION OF 
                   ADOPTION TAX CREDIT AND ADOPTION ASSISTANCE 
                   PROGRAMS.

       Subsection (g) of section 202 of the Economic Growth and 
     Tax Relief Reconciliation Act of 2001 is amended to read as 
     follows:
       ``(g) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2001.''.
                                  ____

  SA 2824. Mr. REID (for Mr. Kennedy (for himself and Mr. Frist)) 
proposed an amendment to the bill S. 1274, to amend the Public Health 
Service Act to provide programs for the prevention, treatment, and 
rehabilitation of stroke; as follows:

       On page 12, line 24, strike ``paragraph (1) (E)'' and 
     insert ``paragraph (1)(D)''.
       On page 13, line 1, strike ``paragraphs'' and all that 
     follows through ``2823(a)'' on line 2, and insert ``paragraph 
     (2) of section 2823(b)''.
       On page 18, line 14, strike ``(b)'' and insert ``(c)''.
       On page 20, line 12, strike ``(c)'' and insert ``(d)''.
                                  ____

  SA 2825. Mr. INHOFE submitted an amendment intended to be proposed to 
amendment SA 2471 submitted by Mr. Daschle and intended to be proposed 
to the bill (S. 1731) to strengthen the safety net for agricultural 
producers, to enhance resource conservation and rural development, to 
provide for farm credit, agricultural research, nutrition, and related 
programs, to ensure consumers abundant food and fiber, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 111, lines 14 and 15, strike ``2002 through 2006'' 
     and insert ``2003 through 2007''.

                          ____________________