[Congressional Record Volume 148, Number 24 (Thursday, March 7, 2002)]
[House]
[Pages H742-H767]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               ECONOMIC SECURITY AND RECOVERY ACT OF 2001

  Ms. PRYCE of Ohio. Madam Speaker, by direction of the Committee on 
Rules, I call up House Resolution 360 and ask for its immediate 
consideration.
  The Clerk read the resolution, as follows:

                              H. Res. 360

       Resolved, That upon adoption of this resolution it shall be 
     in order to take from the Speaker's table the bill (H.R. 
     3090) to provide tax incentives for economic recovery, with 
     the Senate amendment thereto, and to consider in the House, 
     without intervention of any point of order, a motion offered 
     by the chairman of the Committee on Ways and Means or his 
     designee that the House concur in the Senate amendment with 
     the amendment printed in the report of the Committee on Rules 
     accompanying this resolution. The Senate amendment and the 
     motion shall be considered as read. The motion shall be 
     debatable for one hour equally divided and controlled by the 
     chairman and ranking minority member of the Committee on Ways 
     and Means. The previous question shall be considered as 
     ordered on the motion to final adoption without intervening 
     motion.

  The SPEAKER pro tempore (Mrs. Emerson). The gentlewoman from Ohio 
(Ms. Pryce) is recognized for 1 hour.
  Ms. PRYCE of Ohio. Madam Speaker, for the purpose of debate only, I 
yield the customary 30 minutes to the gentleman from Florida (Mr. 
Hastings) pending which I yield myself such time as I may consume. 
During consideration of this resolution, all time yielded is for the 
purpose of debate only.
  Madam Speaker, House Resolution 360 provides for a single motion 
offered by the chairman of the Committee on Ways and Means, or his 
designee, that the House concur in the Senate amendment with the 
amendment printed in the report of the Committee on Rules accompanying 
the resolution. This resolution waives all points of order against 
consideration of the motion to concur in the Senate amendment with an 
amendment. It provides an hour of debate in the House equally divided 
and controlled by the chairman and ranking minority member of the 
Committee on Ways and Means. Finally, the resolution provides that the 
previous question shall be considered as ordered on the motion to final 
adoption without intervening motion.
  Madam Speaker, this is this body's fourth attempt to find the middle 
ground. This is the House's fourth attempt to address the needs of 
unemployed Americans and to provide a needed boost to our economy. This 
House is putting forth a solution in order to build a consensus.
  The amendment made in order under this resolution includes special 
depreciation allowances for certain property and a 5-year carryback of 
net operating losses. If we help businesses, we help create much needed 
jobs. It provides an additional 13 weeks of temporary extended 
unemployment benefits for those who have exhausted their regular 
benefits. It includes the liberty zone tax benefits for reconstruction 
of New York City. Finally, it extends a number of expiring, yet very 
important, provisions such as tax credits for electric vehicles, the 
welfare-to-work tax credit, the Archer medical savings accounts, tax 
credits for production of alternative energy sources, work opportunity 
tax credits, temporary assistance to needy families, or TANF, and that 
is to name just a few.

[[Page H743]]

  Madam Speaker, while the economy is currently showing strong signs of 
recovery, many workers still face the harsh realities of unemployment. 
The economic downturn that began at the end of the year 2000 and that 
was exacerbated by the tragic events of September 11 left many 
Americans unexpectedly out of work.

                              {time}  1030

  We need to make sure this economy moves in the right direction and 
that these folks get the help that they need.
  By adopting this motion, we will give crucial assistance to Americans 
who, through no fault of their own, were separated from their 
occupations, and will ensure that these Americans can care for their 
loved ones, keep their homes, and feed their children. I urge Members 
not to turn their backs on American workers, because it is their 
entrepreneurship, their risk-taking, and their strong work ethic that 
are driving the forces behind the greatest economy in all the world.
  Accordingly, I urge my colleagues to support this rule and the motion 
to be offered by the gentleman from California (Mr. Thomas). It is our 
hope that the other body will accept this initiative so that we can 
quickly move this important legislation to the President's desk for his 
signature.
  We need to get unemployed Americans the help they need and deserve, 
not only in the form of extended benefits; but also it is essential 
that we get them jobs.
  Madam Speaker, I reserve the balance of my time.
  Mr. HASTINGS of Florida. Madam Speaker, I yield myself such time as I 
may consume.
  (Mr. HASTINGS of Florida asked and was given permission to revise and 
extend his remarks.)
  Mr. HASTINGS of Florida. First, Madam Speaker, let me thank the 
gentlewoman from Ohio (Ms. Pryce), my colleague and friend, for 
yielding me this time.
  Madam Speaker, I do not plan to take much time this morning. This 
House well knows the views of many of us, and I certainly have 
expressed my views on the topic of economic recovery, job growth 
stimulation, and tax cuts and credits.
  The amendment which we focus on this morning is fairly narrow and 
straightforward. It extends unemployment benefits for 13 weeks for 
those workers whose benefits are set to expire within the next several 
weeks. This amendment also includes a number of incentives for 
reconstruction efforts centered around Ground Zero in New York City and 
extends the Temporary Assistance to Needy Families supplemental grants 
program.
  Frankly, I feel proud that we can get this assistance to these 
workers, and my colleagues on the other side are to be complimented in 
that regard, and to those who are doing all they can to assist in the 
revitalization of New York City.
  Candidly, Madam Speaker, I am less proud, however, of what this 
Congress still has not done for the rest of the country and all those 
who have been impacted as a result of the events of September 11. I 
note again, as I did yesterday in the Committee on Rules, and as I have 
done a multiplicity of times since not long after September 11, this 
Congress has not done nearly enough to help those whose economic 
livelihood has been severely devastated since the terrorist attacks of 
6 months ago.
  On September 24, barely 2 weeks after the attacks, the gentlewoman 
from Pennsylvania (Ms. Hart) and I introduced a comprehensive measure 
to help this country's workers. Our bill, H.R. 2946, would not only 
extend unemployment benefits, it would also increase job training 
opportunities and extend health care and insurance benefits to those 
who desperately need it.
  Now, 5 months and nearly 160 bipartisan cosponsors later, the House 
has still not acted on the Hart-Hastings bill. We are doing a little 
this morning. But let me say this with the certainty of a clarion: we 
have not done enough.
  I will continue to say we have not done enough until we do. I will 
continue to ask the chairman of the Committee on Ways and Means, and I 
will continue to ask the chairman of the Committee on Education and the 
Workforce and I will continue to ask the chairman of the Committee on 
Commerce to move the Hastings-Hart bill through their respective 
committees with alacrity and bring it to the House floor at once.
  Madam Speaker, near the end of this debate, I will call on my 
colleagues to defeat the previous question. If the previous question is 
defeated, I will offer an amendment to the rule that would allow the 
House to vote on an amendment to provide States with a temporary 
increase in their Medicaid matching rate because of the increased 
number of people who are unemployed and, therefore, do not have health 
insurance. As I noted a moment ago, millions of American jobs have been 
lost since September 11. Far too often, with that job loss, comes the 
loss of health insurance.
  When people get sick, they still need care, whether they can pay for 
it or not. The cost of this care often falls on the State through its 
Medicaid program. Our amendment would greatly ease the increased 
financial burden that many States and certainly my State of Florida now 
faces.
  Madam Speaker, I urge a ``no'' vote on the previous question; and if 
the previous question is defeated, as I indicated, I will offer an 
amendment to the rule that will allow the House to vote on an amendment 
to provide States with a temporary increase in their Medicaid matching 
rate. As I said a few minutes ago, it has been nearly 6 months since 
the events of September 11.
  Our economy, which is already in an economic downturn, has worsened 
considerably. The cost of this care often falls on States through its 
Medicaid program. This amendment will greatly ease the increased 
financial burden that many States now face.
  Madam Speaker, I urge a ``no'' vote on the previous question and a 
vote instead to support an amendment that will help States to offset 
the cost of increased health costs due to the high levels of 
unemployment.

 Previous Question for H. Res. 360--Economic Security and Recovery Act 
                                of 2001

       Strike all after the resolving clause and insert:
       That upon the adoption of this resolution it shall be in 
     order to take from the Speaker's table the bill (H.R. 3090) 
     to provide tax incentives for economic recovery, with the 
     Senate amendment thereto, and to consider in the House, 
     without intervention of any point of order, a motion offered 
     by the Chairman of the Committee on Ways and Means or his 
     designee that the House concur in the Senate amendment with 
     the amendment printed in the report of the Committee on Rules 
     accompanying this resolution. The Senate amendment and the 
     motion shall be considered as read. The motion shall be 
     debatable for one hour equally divided and controlled by the 
     Chairman and ranking minority member of the Committee on Ways 
     and Means. The previous question shall be considered as 
     ordered on the motion and on any amendment thereto to final 
     adoption without intervening motion except the amendment 
     specified in section 2 if offered by Representative Rangel of 
     New York or his designee, which shall be in order without 
     intervention of any point of order or demand for division of 
     the question, shall be considered as read, and shall be 
     separately debatable for one hour equally divided and 
     controlled by the proponent and an opponent.
       Sec. 2. The amendment referred to in the first section of 
     this resolution is as follows:
       At the appropriate place, insert the following:

     SEC.  . TEMPORARY INCREASES OF MEDICAID FMAP FOR FISCAL YEAR 
                   2002.

       (a) Permitting Maintenance of Fiscal Year 2001 FMAP.--
     Nothwithstanding any other provision of law, but subject to 
     subsection (d), if the FMAP determined without regard to this 
     section for a State for fiscal year 2002 is less than the 
     FMAP as so determined for fiscal year 2001, the FMAP for the 
     State for fiscal year 2001 shall be substituted for the 
     State's FMAP for fiscal year 2002, before the application of 
     this section.
       (b) General 1.50 Percentage Points Increase.--
     Notwithstanding any other provision of law, but subject to 
     subsections (d) and (e), for each State for each calendar 
     quarter in fiscal year 2002, the FMAP (taking into account 
     the application of subsection (a)) shall be increased by 1.50 
     percentage points.
       (c) Further Increase for States With High Unemployment 
     Rates.--
       (1) In general.--Notwithstanding any other provision of 
     law, but subject to subsections (d) and (e), the FMAP for a 
     high unemployment State for a calendar quarter in fiscal year 
     2002 (and any subsequent calendar quarter in such fiscal year 
     regardless of whether the State continues to be a high 
     unemployment State for a calendar quarter in such fiscal 
     year) shall be increased (after the application of 
     subsections (a) and (b)) by 1.50 percentage points.
       (2) High unemployment state.--For purposes of this 
     subsection, a State is a high unemployment State for a 
     calendar quarter if, for any 3 consecutive month period 
     beginning on or after June 2001 and ending with

[[Page H744]]

     the second month before the beginning of the calendar 
     quarter, the State has an average seasonally adjusted 
     unemployment rate that exceeds the average weighted 
     unemployment rate during such period. Such unemployment rates 
     for such months shall be determined based on publications of 
     the Bureau of Labor Statistics of the Department of Labor.
       (3) Average weighted unemployment rate defined.--For 
     purposes of paragraph (2), the average weighted unemployment 
     rate for a period is--
       (A) the sum of the seasonally adjusted number of unemployed 
     civilians in each State and the District of Columbia for the 
     period, divided by
       (B) the sum of the civilian labor force in each State and 
     the District of Columbia for the period.
       (d) 1-Year Increase in Cap on Medicaid Payments to 
     Territories.--Notwithstanding any other provision of law, 
     with respect to fiscal year 2002, the amounts otherwise 
     determined for Puerto Rico, the Virgin Islands, Guam, the 
     Northern Mariana Islands, and American Samoa under section 
     1108 of the Social Security Act (42 U.S.C. 1308) shall each 
     be increased by an amount equal to 3.093 percentage points of 
     such amounts.
       (e) 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
       (2) payments under titles IV and XXI of such Act (42 U.S.C. 
     601 et seq. and 1397aa et seq.).

  Madam Speaker, I yield back the balance of my time.
  Ms. PRYCE of Ohio. Madam Speaker, I yield myself such time as I may 
consume to remind my colleagues that this body has done its job. It has 
looked for consensus, and it has found a solution. This motion to help 
unemployed workers as they look for jobs will give a boost to them and 
also a small boost to the businesses that can help create those jobs. I 
urge my colleagues to support this rule and the underlying motion so 
that it can be sent finally to the President for his signature.
  Madam Speaker, I urge a ``yes'' vote, I yield back the balance of my 
time, and I move the previous question on the resolution.
  The SPEAKER pro tempore (Mrs. Emerson). The question is on ordering 
the previous question.
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.
  Mr. HASTINGS of Florida. Madam Speaker, I object to the vote on the 
ground that a quorum is not present and make the point of order that a 
quorum is not present.
  The SPEAKER pro tempore. Evidently a quorum is not present.
  The Sergeant at Arms will notify absent Members.
  Pursuant to clause 9 of rule XX, the Chair will reduce to 5 minutes 
the minimum time for electronic voting, if ordered, on adoption of the 
resolution.
  The vote was taken by electronic device, and there were--yeas 217, 
nays 192, not voting 25, as follows:

                             [Roll No. 51]

                               YEAS--217

     Aderholt
     Akin
     Armey
     Bachus
     Baker
     Ballenger
     Barr
     Bartlett
     Bass
     Bereuter
     Biggert
     Bilirakis
     Blunt
     Boehlert
     Boehner
     Bonilla
     Bono
     Boozman
     Brady (TX)
     Brown (SC)
     Bryant
     Burr
     Burton
     Buyer
     Callahan
     Camp
     Cannon
     Cantor
     Capito
     Castle
     Chabot
     Chambliss
     Coble
     Collins
     Combest
     Cooksey
     Cox
     Crane
     Crenshaw
     Cunningham
     Davis, Jo Ann
     Davis, Tom
     Deal
     DeLay
     DeMint
     Diaz-Balart
     Dicks
     Dooley
     Doolittle
     Dreier
     Duncan
     Dunn
     Ehlers
     Ehrlich
     Emerson
     English
     Everett
     Ferguson
     Flake
     Fletcher
     Foley
     Forbes
     Fossella
     Frelinghuysen
     Ganske
     Gekas
     Gibbons
     Gilchrest
     Gillmor
     Gilman
     Goode
     Goodlatte
     Goss
     Graham
     Granger
     Graves
     Green (WI)
     Greenwood
     Grucci
     Gutknecht
     Hall (TX)
     Hansen
     Hart
     Hastings (WA)
     Hayes
     Hayworth
     Hefley
     Herger
     Hilleary
     Hobson
     Hoekstra
     Horn
     Hostettler
     Houghton
     Hulshof
     Hunter
     Hyde
     Isakson
     Issa
     Istook
     Jenkins
     Johnson (CT)
     Johnson, Sam
     Jones (NC)
     Keller
     Kelly
     Kennedy (MN)
     Kerns
     King (NY)
     Kingston
     Kirk
     Knollenberg
     Kolbe
     LaHood
     Latham
     LaTourette
     Leach
     Lewis (CA)
     Lewis (KY)
     Linder
     LoBiondo
     Lucas (OK)
     Manzullo
     McCrery
     McHugh
     McInnis
     McKeon
     Mica
     Miller, Dan
     Miller, Gary
     Miller, Jeff
     Moran (KS)
     Myrick
     Nethercutt
     Ney
     Northup
     Norwood
     Nussle
     Osborne
     Ose
     Otter
     Oxley
     Paul
     Pence
     Peterson (PA)
     Petri
     Pickering
     Pitts
     Platts
     Pombo
     Portman
     Pryce (OH)
     Putnam
     Quinn
     Radanovich
     Ramstad
     Regula
     Rehberg
     Reynolds
     Riley
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Ros-Lehtinen
     Roukema
     Royce
     Ryan (WI)
     Ryun (KS)
     Saxton
     Schaffer
     Schrock
     Sensenbrenner
     Sessions
     Shadegg
     Shaw
     Shays
     Sherwood
     Shimkus
     Shows
     Shuster
     Simpson
     Skeen
     Smith (MI)
     Smith (NJ)
     Smith (TX)
     Souder
     Stearns
     Stump
     Sullivan
     Sununu
     Sweeney
     Tancredo
     Tauzin
     Taylor (NC)
     Terry
     Thomas
     Thornberry
     Thune
     Tiahrt
     Tiberi
     Toomey
     Upton
     Vitter
     Walden
     Walsh
     Wamp
     Watkins (OK)
     Watts (OK)
     Weldon (FL)
     Weldon (PA)
     Weller
     Whitfield
     Wicker
     Wilson (NM)
     Wilson (SC)
     Wolf
     Young (FL)

                               NAYS--192

     Abercrombie
     Allen
     Andrews
     Baca
     Baird
     Baldacci
     Baldwin
     Barcia
     Barrett
     Becerra
     Berkley
     Berman
     Berry
     Bishop
     Blumenauer
     Bonior
     Borski
     Boswell
     Boucher
     Boyd
     Brady (PA)
     Brown (OH)
     Capps
     Capuano
     Cardin
     Carson (IN)
     Carson (OK)
     Clay
     Clayton
     Clement
     Clyburn
     Conyers
     Costello
     Coyne
     Cramer
     Cummings
     Davis (CA)
     Davis (FL)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Deutsch
     Dingell
     Doggett
     Doyle
     Edwards
     Engel
     Eshoo
     Etheridge
     Evans
     Farr
     Fattah
     Filner
     Ford
     Frank
     Frost
     Gephardt
     Gonzalez
     Gordon
     Green (TX)
     Gutierrez
     Hall (OH)
     Harman
     Hastings (FL)
     Hill
     Hilliard
     Hinchey
     Hinojosa
     Hoeffel
     Holden
     Holt
     Honda
     Hooley
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jefferson
     John
     Johnson, E. B.
     Jones (OH)
     Kanjorski
     Kaptur
     Kennedy (RI)
     Kildee
     Kilpatrick
     Kind (WI)
     Kleczka
     Kucinich
     LaFalce
     Lampson
     Langevin
     Lantos
     Larsen (WA)
     Larson (CT)
     Lee
     Levin
     Lewis (GA)
     Lipinski
     Lowey
     Lucas (KY)
     Luther
     Lynch
     Maloney (CT)
     Maloney (NY)
     Markey
     Mascara
     Matheson
     Matsui
     McCarthy (MO)
     McCarthy (NY)
     McCollum
     McDermott
     McGovern
     McIntyre
     McKinney
     McNulty
     Meehan
     Meek (FL)
     Meeks (NY)
     Menendez
     Millender-McDonald
     Miller, George
     Mink
     Mollohan
     Moore
     Moran (VA)
     Murtha
     Nadler
     Napolitano
     Oberstar
     Obey
     Olver
     Ortiz
     Owens
     Pallone
     Pascrell
     Pastor
     Payne
     Pelosi
     Peterson (MN)
     Phelps
     Pomeroy
     Price (NC)
     Rahall
     Rangel
     Reyes
     Rivers
     Rodriguez
     Roemer
     Roybal-Allard
     Rush
     Sabo
     Sanders
     Sandlin
     Sawyer
     Schakowsky
     Schiff
     Scott
     Serrano
     Sherman
     Skelton
     Slaughter
     Smith (WA)
     Snyder
     Spratt
     Stark
     Stenholm
     Strickland
     Stupak
     Tanner
     Tauscher
     Taylor (MS)
     Thompson (CA)
     Thompson (MS)
     Thurman
     Tierney
     Towns
     Turner
     Udall (CO)
     Udall (NM)
     Velazquez
     Visclosky
     Waters
     Watson (CA)
     Watt (NC)
     Waxman
     Weiner
     Woolsey
     Wu
     Wynn

                             NOT VOTING--25

     Ackerman
     Barton
     Bentsen
     Blagojevich
     Brown (FL)
     Calvert
     Condit
     Crowley
     Cubin
     Culberson
     Davis (IL)
     Gallegly
     Jackson-Lee (TX)
     Johnson (IL)
     Lofgren
     Morella
     Neal
     Ross
     Rothman
     Sanchez
     Simmons
     Solis
     Traficant
     Wexler
     Young (AK)

                              {time}  1102

  Ms. VELAZQUEZ, Ms. ESHOO, Ms. HOOLEY of Oregon and Messrs. STUPAK, 
BISHOP, and JOHN changed their vote from ``yea'' to ``nay''.
  Mr. EVERETT and Mr. CASTLE changed their vote from ``nay'' to 
``yea''.
  So the previous question was ordered.
  The result of the vote was announced as above recorded.
  Stated against:
  Ms. SOLIS. Mr. Speaker, during rollcall vote No. 51 on ordering the 
previous question I was unavoidably detained. Had I been present, I 
would have voted ``nay.''
  The SPEAKER pro tempore (Mrs. Emerson). The question is on the 
resolution.
  The resolution was agreed to.
  A motion to reconsider was laid on the table.
  Mr. THOMAS. Madam Speaker, pursuant to House Resolution 360 I call up 
from the Speaker's table the bill (H.R. 3090) to provide tax incentives 
for economic recovery, with a Senate amendment thereto, and ask for its 
immediate consideration in the House.
  The Clerk read the title of the bill.
  The text of the Senate amendment is as follows:

       Senate amendment:
       Strike out all after the enacting clause and insert:

[[Page H745]]

     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 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).

[[Page H746]]

     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.

                      motion offered by mr. thomas

  Mr. THOMAS. Madam Speaker, I offer a motion.
  The SPEAKER pro tempore. The Clerk will designate the motion.
  The text of the motion is as follows:

       Mr. Thomas moves that the House concur in the Senate 
     amendment with an amendment, as follows:
       In the amendment of the Senate, strike the matter proposed 
     to be inserted by the Senate and insert the following:

     SECTION 1. SHORT TITLE; ETC.

       (a) Short Title.--This Act may be cited as the ``Job 
     Creation and Worker Assistance 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.--

Sec. 1. Short title; etc.

                      TITLE I--BUSINESS PROVISIONS

Sec. 101. Special depreciation allowance for certain property acquired 
              after September 10, 2001, and before September 11, 2004.
Sec. 102. Carryback of certain net operating losses allowed for 5 
              years; temporary suspension of 90 percent AMT limit.

                   TITLE II--UNEMPLOYMENT ASSISTANCE

Sec. 201. Short title.
Sec. 202. Federal-State agreements.
Sec. 203. Temporary extended unemployment compensation account.
Sec. 204. Payments to States having agreements for the payment of 
              temporary extended unemployment compensation.
Sec. 205. Financing provisions.
Sec. 206. Fraud and overpayments.
Sec. 207. Definitions.
Sec. 208. Applicability.
Sec. 209. Special Reed Act transfer in fiscal year 2002.

    TITLE III--TAX INCENTIVES FOR NEW YORK CITY AND DISTRESSED AREAS

Sec. 301. Tax benefits for area of New York City damaged in terrorist 
              attacks on September 11, 2001.

            TITLE IV--MISCELLANEOUS AND TECHNICAL PROVISIONS

              Subtitle A--General Miscellaneous Provisions

Sec. 401. Allowance of electronic 1099's.
Sec. 402. Excluded cancellation of indebtedness income of S corporation 
              not to result in adjustment to basis of stock of 
              shareholders.
Sec. 403. Limitation on use of nonaccrual experience method of 
              accounting.
Sec. 404. Exclusion for foster care payments to apply to payments by 
              qualified placement agencies.
Sec. 405. Interest rate range for additional funding requirements.
Sec. 406. Adjusted gross income determined by taking into account 
              certain expenses of elementary and secondary school 
              teachers.

                   Subtitle B--Technical Corrections

Sec. 411. Amendments related to Economic Growth and Tax Relief 
              Reconciliation Act of 2001.
Sec. 412. Amendments related to Community Renewal Tax Relief Act of 
              2000.
Sec. 413. Amendments related to the Tax Relief Extension Act of 1999.
Sec. 414. Amendments related to the Taxpayer Relief Act of 1997.
Sec. 415. Amendment related to the Balanced Budget Act of 1997.
Sec. 416. Other technical corrections.
Sec. 417. Clerical amendments.
Sec. 418. Additional corrections.

   TITLE V--SOCIAL SECURITY HELD HARMLESS; BUDGETARY TREATMENT OF ACT

Sec. 501. No impact on social security trust funds.
Sec. 502. Emergency designation.

          TITLE VI--EXTENSIONS OF CERTAIN EXPIRING PROVISIONS

Sec. 601. Allowance of nonrefundable personal credits against regular 
              and minimum tax liability.
Sec. 602. Credit for qualified electric vehicles.
Sec. 603. Credit for electricity produced from certain renewable 
              resources.
Sec. 604. Work opportunity credit.
Sec. 605. Welfare-to-work credit.
Sec. 606. Deduction for clean-fuel vehicles and certain refueling 
              property.
Sec. 607. Taxable income limit on percentage depletion for oil and 
              natural gas produced from marginal properties.
Sec. 608. Qualified zone academy bonds.
Sec. 609. Cover over of tax on distilled spirits.
Sec. 610. Parity in the application of certain limits to mental health 
              benefits.
Sec. 611. Temporary special rules for taxation of life insurance 
              companies.
Sec. 612. Availability of medical savings accounts.
Sec. 613. Incentives for Indian employment and property on Indian 
              reservations.
Sec. 614. Subpart F exemption for active financing.
Sec. 615. Repeal of requirement for approved diesel or kerosene 
              terminals.
Sec. 616. Reauthorization of TANF supplemental grants for population 
              increases for fiscal year 2002.
Sec. 617. 1-year extension of contingency fund under the TANF program.

                      TITLE I--BUSINESS PROVISIONS

     SEC. 101. SPECIAL DEPRECIATION ALLOWANCE FOR CERTAIN PROPERTY 
                   ACQUIRED AFTER SEPTEMBER 10, 2001, AND BEFORE 
                   SEPTEMBER 11, 2004.

       (a) In General.--Section 168 (relating to accelerated cost 
     recovery system) is amended by adding at the end the 
     following new subsection:
       ``(k) Special Allowance for Certain Property Acquired After 
     September 10, 2001, and Before September 11, 2004.--
       ``(1) Additional allowance.--In the case of any qualified 
     property--
       ``(A) the depreciation deduction provided by section 167(a) 
     for the taxable year in which such property is placed in 
     service shall include an allowance equal to 30 percent of the 
     adjusted basis of the qualified property, and
       ``(B) the adjusted basis of the qualified property shall be 
     reduced by the amount of such deduction before computing the 
     amount otherwise allowable as a depreciation deduction under 
     this chapter for such taxable year and any subsequent taxable 
     year.
       ``(2) Qualified property.--For purposes of this 
     subsection--
       ``(A) In general.--The term `qualified property' means 
     property--
       ``(i)(I) to which this section applies which has a recovery 
     period of 20 years or less,
       ``(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 water utility property, or
       ``(IV) which is qualified leasehold improvement property,
       ``(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) Qualified new york liberty zone leasehold 
     improvement property.--The term `qualified property' shall 
     not include any qualified New York Liberty Zone leasehold 
     improvement property (as defined in section 1400L(c)(2)).
       ``(iii) 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 September 10, 2001, and before September 11, 2004.

[[Page H747]]

       ``(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).
       ``(F) Deduction allowed in computing miniumum tax.--For 
     purposes of determining alternative minimum taxable income 
     under section 55, the deduction under subsection (a) for 
     qualified property shall be determined under this section 
     without regard to any adjustment under section 56.
       ``(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) Commitment to lease treated as lease.--A commitment 
     to enter into a lease shall be treated as a lease, and the 
     parties to such commitment shall be treated as lessor and 
     lessee, respectively.
       ``(ii) Related persons.--A lease between related persons 
     shall not be considered a lease. For purposes of the 
     preceding sentence, the term `related persons' means--

       ``(I) members of an affiliated group (as defined in section 
     1504), and
       ``(II) persons having a relationship described in 
     subsection (b) of section 267; except that, for purposes of 
     this clause, the phrase `80 percent or more' shall be 
     substituted for the phrase `more than 50 percent' each place 
     it appears in such subsection.''

       (b) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after September 10, 
     2001, in taxable years ending after such date.

     SEC. 102. CARRYBACK OF CERTAIN NET OPERATING LOSSES ALLOWED 
                   FOR 5 YEARS; TEMPORARY SUSPENSION OF 90 PERCENT 
                   AMT LIMIT.

       (a) In General.--Paragraph (1) of section 172(b) (relating 
     to years to which loss may be carried) is amended by adding 
     at the end the following new subparagraph:
       ``(H) In the case of a taxpayer which has a net operating 
     loss for any taxable year ending during 2001 or 2002, 
     subparagraph (A)(i) shall be applied by substituting `5' for 
     `2' and subparagraph (F) shall not apply.''.
       (b) Election To Disregard 5-Year Carryback.--Section 172 
     (relating to net operating loss deduction) is amended by 
     redesignating subsection (j) as subsection (k) and by 
     inserting after subjection (i) the following new subsection:
       ``(j) Election To Disregard 5-Year Carryback for Certain 
     Net Operating Losses.--Any taxpayer entitled to a 5-year 
     carryback under subsection (b)(1)(H) from any loss year may 
     elect to have the carryback period with respect to such loss 
     year determined without regard to subsection (b)(1)(H). Such 
     election shall be made in such manner as may be prescribed by 
     the Secretary and shall be made by the due date (including 
     extensions of time) for filing the taxpayer's return for the 
     taxable year of the net operating loss. Such election, once 
     made for any taxable year, shall be irrevocable for such 
     taxable year.''.
       (c) Temporary Suspension of 90 Percent Limit on Certain NOL 
     Carryovers.--
       (1) In general.--Subparagraph (A) of section 56(d)(1) 
     (relating to general rule defining alternative tax net 
     operating loss deduction) is amended to read as follows:
       ``(A) the amount of such deduction shall not exceed the sum 
     of--
       ``(i) the lesser of--

       ``(I) the amount of such deduction attributable to net 
     operating losses (other than the deduction attributable to 
     carryovers described in clause (ii)(I)), or
       ``(II) 90 percent of alternative minimum taxable income 
     determined without regard to such deduction, plus

       ``(ii) the lesser of--

       ``(I) the amount of such deduction attributable to the sum 
     of carrybacks of net operating losses for taxable years 
     ending during 2001 or 2002 and carryforwards of net operating 
     losses to taxable years ending during 2001 and 2002, or
       ``(II) alternative minimum taxable income determined 
     without regard to such deduction reduced by the amount 
     determined under clause (i), and''.

       (2) Effective date.--The amendment made by this subsection 
     shall apply to taxable years ending before January 1, 2003.
       (d) Effective Date.--Except as provided in subsection (c), 
     the amendments made by this section shall apply to net 
     operating losses for taxable years ending after December 31, 
     2000.

                   TITLE II--UNEMPLOYMENT ASSISTANCE

     SEC. 201. SHORT TITLE.

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

     SEC. 202. FEDERAL-STATE AGREEMENTS.

       (a) In General.--Any State which desires to do so may enter 
     into and participate in an agreement under this 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 203 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. 203. 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.

[[Page H748]]

       (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) 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.
       (c) Special Rule.--
       (1) In general.--Notwithstanding any other provision of 
     this section, if, at the time that the individual's account 
     is exhausted, such individual's State is in an extended 
     benefit period (as determined under paragraph (2)), then, 
     such account shall be augmented by an amount equal to the 
     amount originally established in such account (as determined 
     under subsection (b)(1)).
       (2) Extended benefit period.--For purposes of paragraph 
     (1), a State shall be considered to be in an extended benefit 
     period if, at the time of exhaustion (as described in 
     paragraph (1))--
       (A) such a period is then in effect for such State under 
     the Federal-State Extended Unemployment Compensation Act of 
     1970; or
       (B) such a period would then be in effect for such State 
     under such Act if section 203(d) of such Act were applied as 
     if it had been amended by striking ``5'' each place it 
     appears and inserting ``4''.

     SEC. 204. 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. 205. 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. 206. FRAUD AND OVERPAYMENTS.

       (a) In General.--If an individual knowingly has made, or 
     caused to be made by another, a false statement or 
     representation of a material fact, or knowingly has failed, 
     or caused another to fail, to disclose a material fact, and 
     as a result of such false statement or representation or of 
     such nondisclosure such individual has received 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. 207. 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. 208. 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. 209. 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)(A) 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--
       ``(i) 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 209(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,


[[Page H749]]


     minus
       ``(ii) the amount which was in fact transferred under this 
     section to such account at the beginning of fiscal year 2002.
       ``(B) Notwithstanding the provisions of subparagraph (A)--
       ``(i) the aggregate amount transferred to the States under 
     this subsection may not exceed a total of $8,000,000,000; and
       ``(ii) all amounts determined under subparagraph (A) shall 
     be reduced ratably, if and to the extent necessary in order 
     to comply with the limitation under clause (i).
       ``(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 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 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 III--TAX INCENTIVES FOR NEW YORK CITY AND DISTRESSED AREAS

     SEC. 301. TAX BENEFITS FOR AREA OF NEW YORK CITY DAMAGED IN 
                   TERRORIST ATTACKS ON SEPTEMBER 11, 2001.

       (a) In General.--Chapter 1 is amended by adding at the end 
     the following new subchapter:

             ``Subchapter Y--New York Liberty Zone Benefits

``Sec. 1400L. Tax benefits for New York Liberty Zone.

     ``SEC. 1400L. TAX BENEFITS FOR NEW YORK LIBERTY ZONE.

       ``(a) Expansion of Work Opportunity Tax Credit.--
       ``(1) In general.--For purposes of section 51, a New York 
     Liberty Zone business employee shall be treated as a member 
     of a targeted group.
       ``(2) New york liberty zone business employee.--For 
     purposes of this subsection--
       ``(A) In general.--The term `New York Liberty Zone business 
     employee' means, with respect to any period, any employee of 
     a New York Liberty Zone business if substantially all the 
     services performed during such period by such employee for 
     such business are performed in the New York Liberty Zone.
       ``(B) Inclusion of certain employees outside the new york 
     liberty zone.--
       ``(i) In general.--In the case of a New York Liberty Zone 
     business described in subclause (II) of subparagraph (C)(i), 
     the term `New York Liberty Zone business employee' includes 
     any employee of such business (not described in subparagraph 
     (A)) if substantially all the services performed during such 
     period by such employee for such business are performed in 
     the City of New York, New York.
       ``(ii) Limitation.--The number of employees of such a 
     business that are treated as New York Liberty zone business 
     employees on any day by reason of clause (i) shall not exceed 
     the excess of--

       ``(I) the number of employees of such business on September 
     11, 2001, in the New York Liberty Zone, over
       ``(II) the number of New York Liberty Zone business 
     employees (determined without regard to this subparagraph) of 
     such business on the day to which the limitation is being 
     applied.

     The Secretary may require any trade or business to have the 
     number determined under subclause (I) verified by the New 
     York State Department of Labor.
       ``(C) New york liberty zone business.--
       ``(i) In general.--The term `New York Liberty Zone 
     business' means any trade or business which is--

       ``(I) located in the New York Liberty Zone, or
       ``(II) located in the City of New York, New York, outside 
     the New York Liberty Zone, as a result of the physical 
     destruction or damage of such place of business by the 
     September 11, 2001, terrorist attack.

       ``(ii) Credit not allowed for large businesses.--The term 
     `New York Liberty Zone business' shall not include any trade 
     or business for any taxable year if such trade or business 
     employed an average of more than 200 employees on business 
     days during the taxable year.
       ``(D) Special rules for determining amount of credit.--For 
     purposes of applying subpart F of part IV of subchapter B of 
     this chapter to wages paid or incurred to any New York 
     Liberty Zone business employee--
       ``(i) section 51(a) shall be applied by substituting 
     `qualified wages' for `qualified first-year wages',
       ``(ii) the rules of section 52 shall apply for purposes of 
     determining the number of employees under subparagraph (B),
       ``(iii) subsections (c)(4) and (i)(2) of section 51 shall 
     not apply, and
       ``(iv) in determining qualified wages, the following shall 
     apply in lieu of section 51(b):

       ``(I) Qualified wages.--The term `qualified wages' means 
     wages paid or incurred by the employer to individuals who are 
     New York Liberty Zone business employees of such employer for 
     work performed during calendar year 2002 or 2003.
       ``(II) Only first $6,000 of wages per calendar year taken 
     into account.--The amount of the qualified wages which may be 
     taken into account with respect to any individual shall not 
     exceed $6,000 per calendar year.

       ``(b) Special Allowance for Certain Property Acquired After 
     September 10, 2001.--
       ``(1) Additional allowance.--In the case of any qualified 
     New York Liberty Zone 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 such property, and
       ``(B) the adjusted basis of the qualified New York Liberty 
     Zone property shall be reduced by the amount of such 
     deduction before computing the amount otherwise allowable as 
     a depreciation deduction under this chapter for such taxable 
     year and any subsequent taxable year.
       ``(2) Qualified new york liberty zone property.--For 
     purposes of this subsection--
       ``(A) In general.--The term `qualified New York Liberty 
     Zone property' means property--
       ``(i)(I) which is described in section 168(k)(2)(A)(i), or
       ``(II) which is nonresidential real property, or 
     residential rental property, which is described in 
     subparagraph (B),
       ``(ii) substantially all of the use of which is in the New 
     York Liberty Zone and is in the active conduct of a trade or 
     business by the taxpayer in such Zone,
       ``(iii) the original use of which in the New York Liberty 
     Zone commences with the taxpayer after September 10, 2001,
       ``(iv) which is acquired by the taxpayer by purchase (as 
     defined in section 179(d)) after September 10, 2001, but only 
     if no written binding contract for the acquisition was in 
     effect before September 11, 2001, and

[[Page H750]]

       ``(v) which is placed in service by the taxpayer on or 
     before the termination date.
     The term `termination date' means December 31, 2006 (December 
     31, 2009, in the case of nonresidential real property and 
     residential rental property).
       ``(B) Eligible real property.--Nonresidential real property 
     or residential rental property is described in this 
     subparagraph only to the extent it rehabilitates real 
     property damaged, or replaces real property destroyed or 
     condemned, as a result of the September 11, 2001, terrorist 
     attack. For purposes of the preceding sentence, property 
     shall be treated as replacing real property destroyed or 
     condemned if, as part of an integrated plan, such property 
     replaces real property which is included in a continuous area 
     which includes real property destroyed or condemned.
       ``(C) Exceptions.--
       ``(i) 30 percent additional allowance property.--Such term 
     shall not include property to which section 168(k) applies.
       ``(ii) Alternative depreciation property.--The term 
     `qualified New York Liberty Zone property' shall not include 
     any property described in section 168(k)(2)(C)(i).
       ``(iii) Qualified new york liberty zone leasehold 
     improvement property.--Such term shall not include any 
     qualified New York Liberty Zone leasehold improvement 
     property.
       ``(iv) Election out.--For purposes of this subsection, 
     rules similar to the rules of section 168(k)(2)(C)(iii) shall 
     apply.
       ``(D) Special rules.--For purposes of this subsection, 
     rules similar to the rules of section 168(k)(2)(D) shall 
     apply, except that clause (i) thereof shall be applied 
     without regard to `and before September 11, 2004'.
       ``(E) Allowance against alternative minimum tax.--For 
     purposes of this subsection, rules similar to the rules of 
     section 168(k)(2)(F) shall apply.
       ``(c) 5-Year Recovery Period for Depreciation of Certain 
     Leasehold Improvements.--
       ``(1) In general.--For purposes of section 168, the term 
     `5-year property' includes any qualified New York Liberty 
     Zone leasehold improvement property.
       ``(2) Qualified new york liberty zone leasehold improvement 
     property.--For purposes of this section, the term `qualified 
     New York Liberty Zone leasehold improvement property' means 
     qualified leasehold improvement property (as defined in 
     section 168(k)(3)) if--
       ``(A) such building is located in the New York Liberty 
     Zone,
       ``(B) such improvement is placed in service after September 
     10, 2001, and before January 1, 2007, and
       ``(C) no written binding contract for such improvement was 
     in effect before September 11, 2001.
       ``(3) Requirement to use straight line method.--The 
     applicable depreciation method under section 168 shall be the 
     straight line method in the case of qualified New York 
     Liberty Zone leasehold improvement property.
       ``(4) 9-year recovery period under alternative system.--For 
     purposes of section 168(g), the class life of qualified New 
     York Liberty Zone leasehold improvement property shall be 9 
     years.
       ``(d) Tax-Exempt Bond Financing.--
       ``(1) In general.--For purposes of this title, any 
     qualified New York Liberty Bond shall be treated as an exempt 
     facility bond.
       ``(2) Qualified new york liberty bond.--For purposes of 
     this subsection, the term `qualified New York Liberty Bond' 
     means any bond issued as part of an issue if--
       ``(A) 95 percent or more of the net proceeds (as defined in 
     section 150(a)(3)) of such issue are to be used for qualified 
     project costs,
       ``(B) such bond is issued by the State of New York or any 
     political subdivision thereof,
       ``(C) the Governor or the Mayor designates such bond for 
     purposes of this section, and
       ``(D) such bond is issued after the the date of the 
     enactment of this section and before January 1, 2005.
       ``(3) Limitations on amount of bonds.--
       ``(A) Aggregate amount designated.--The maximum aggregate 
     face amount of bonds which may be designated under this 
     subsection shall not exceed $8,000,000,000, of which not to 
     exceed $4,000,000,000 may be designated by the Governor and 
     not to exceed $4,000,000,000 may be designated by the Mayor.
       ``(B) Specific limitations.--The aggregate face amount of 
     bonds issued which are to be used for--
       ``(i) costs for property located outside the New York 
     Liberty Zone shall not exceed $2,000,000,000,
       ``(ii) residential rental property shall not exceed 
     $1,600,000,000, and
       ``(iii) costs with respect to property used for retail 
     sales of tangible property and functionally related and 
     subordinate property shall not exceed $800,000,000.

     The limitations under clauses (i), (ii), and (iii) shall be 
     allocated proportionately between the bonds designated by the 
     Governor and the bonds designated by the Mayor in proportion 
     to the respective amounts of bonds designated by each.
       ``(C) Movable property.--No bonds shall be issued which are 
     to be used for movable fixtures and equipment.
       ``(4) Qualified project costs.--For purposes of this 
     subsection--
       ``(A) In general.--The term `qualified project costs' means 
     the cost of acquisition, construction, reconstruction, and 
     renovation of--
       ``(i) nonresidential real property and residential rental 
     property (including fixed tenant improvements associated with 
     such property) located in the New York Liberty Zone, and
       ``(ii) public utility property (as defined in section 
     168(i)(10)) located in the New York Liberty Zone.
       ``(B) Costs for certain property outside zone included.--
     Such term includes the cost of acquisition, construction, 
     reconstruction, and renovation of nonresidential real 
     property (including fixed tenant improvements associated with 
     such property) located outside the New York Liberty Zone but 
     within the City of New York, New York, if such property is 
     part of a project which consists of at least 100,000 square 
     feet of usable office or other commercial space located in a 
     single building or multiple adjacent buildings.
       ``(5) Special rules.--In applying this title to any 
     qualified New York Liberty Bond, the following modifications 
     shall apply:
       ``(A) Section 146 (relating to volume cap) shall not apply.
       ``(B) Section 147(d) (relating to acquisition of existing 
     property not permitted) shall be applied by substituting `50 
     percent' for `15 percent' each place it appears.
       ``(C) Section 148(f)(4)(C) (relating to exception from 
     rebate for certain proceeds to be used to finance 
     construction expenditures) shall apply to the available 
     construction proceeds of bonds issued under this section.
       ``(D) Repayments of principal on financing provided by the 
     issue--
       ``(i) may not be used to provide financing, and
       ``(ii) must be used not later than the close of the 1st 
     semiannual period beginning after the date of the repayment 
     to redeem bonds which are part of such issue.
     The requirement of clause (ii) shall be treated as met with 
     respect to amounts received within 10 years after the date of 
     issuance of the issue (or, in the case of a refunding bond, 
     the date of issuance of the original bond) if such amounts 
     are used by the close of such 10 years to redeem bonds which 
     are part of such issue.
       ``(E) Section 57(a)(5) shall not apply.
       ``(6) Separate issue treatment of portions of an issue.--
     This subsection shall not apply to the portion of an issue 
     which (if issued as a separate issue) would be treated as a 
     qualified bond or as a bond that is not a private activity 
     bond (determined without regard to paragraph (1)), if the 
     issuer elects to so treat such portion.
       ``(e) Advance Refundings of Certain Tax-Exempt Bonds.--
       ``(1) In general.--With respect to a bond described in 
     paragraph (2) issued as part of an issue 90 percent (95 
     percent in the case of a bond described in paragraph (2)(C)) 
     or more of the net proceeds (as defined in section 150(a)(3)) 
     of which were used to finance facilities located within the 
     City of New York, New York (or property which is functionally 
     related and subordinate to facilities located within the City 
     of New York for the furnishing of water), one additional 
     advanced refunding after the date of the enactment of this 
     section and before January 1, 2005, shall be allowed under 
     the applicable rules of section 149(d) if--
       ``(A) the Governor or the Mayor designates the advance 
     refunding bond for purposes of this subsection, and
       ``(B) the requirements of paragraph (4) are met.
       ``(2) Bonds described.--A bond is described in this 
     paragraph if such bond was outstanding on September 11, 2001, 
     and is--
       ``(A) a State or local bond (as defined in section 
     103(c)(1)) which is a general obligation of the City of New 
     York, New York,
       ``(B) a State or local bond (as so defined) other than a 
     private activity bond (as defined in section 141(a)) issued 
     by the New York Municipal Water Finance Authority or the 
     Metropolitan Transportation Authority of the State of New 
     York, or
       ``(C) a qualified 501(c)(3) bond (as defined in section 
     145(a)) which is a qualified hospital bond (as defined in 
     section 145(c)) issued by or on behalf of the State of New 
     York or the City of New York, New York.
       ``(3) Aggregate limit.--For purposes of paragraph (1), the 
     maximum aggregate face amount of bonds which may be 
     designated under this subsection by the Governor shall not 
     exceed $4,500,000,000 and the maximum aggregate face amount 
     of bonds which may be designated under this subsection by the 
     Mayor shall not exceed $4,500,000,000.
       ``(4) Additional requirements.--The requirements of this 
     paragraph are met with respect to any advance refunding of a 
     bond described in paragraph (2) if--
       ``(A) no advance refundings of such bond would be allowed 
     under any provision of law after September 11, 2001,
       ``(B) the advance refunding bond is the only other 
     outstanding bond with respect to the refunded bond, and
       ``(C) the requirements of section 148 are met with respect 
     to all bonds issued under this subsection.
       ``(f) Increase in Expensing Under Section 179.--
       ``(1) In general.--For purposes of section 179--
       ``(A) the limitation under section 179(b)(1) shall be 
     increased by the lesser of--
       ``(i) $35,000, or
       ``(ii) the cost of section 179 property which is qualified 
     New York Liberty Zone property

[[Page H751]]

     placed in service during the taxable year, and
       ``(B) the amount taken into account under section 179(b)(2) 
     with respect to any section 179 property which is qualified 
     New York Liberty Zone property shall be 50 percent of the 
     cost thereof.
       ``(2) Qualified new york liberty zone property.--For 
     purposes of this subsection, the term `qualified New York 
     Liberty Zone property' has the meaning given such term by 
     subsection (b)(2).
       ``(3) Recapture.--Rules similar to the rules under section 
     179(d)(10) shall apply with respect to any qualified New York 
     Liberty Zone property which ceases to be used in the New York 
     Liberty Zone.
       ``(g) Extension of Replacement Period for Nonrecognition of 
     Gain.--Notwithstanding subsections (g) and (h) of section 
     1033, clause (i) of section 1033(a)(2)(B) shall be applied by 
     substituting `5 years' for `2 years' with respect to property 
     which is compulsorily or involuntarily converted as a result 
     of the terrorist attacks on September 11, 2001, in the New 
     York Liberty Zone but only if substantially all of the use of 
     the replacement property is in the City of New York, New 
     York.
       ``(h) New York Liberty Zone.--For purposes of this section, 
     the term `New York Liberty Zone' means the area located on or 
     south of Canal Street, East Broadway (east of its 
     intersection with Canal Street), or Grand Street (east of its 
     intersection with East Broadway) in the Borough of Manhattan 
     in the City of New York, New York.
       ``(i) References to Governor and Mayor.--For purposes of 
     this section, the terms `Governor' and `Mayor' mean the 
     Governor of the State of New York and the Mayor of the City 
     of New York, New York, respectively.''.
       (b) Credit Allowed Against Regular and Minimum Tax.--
       (1) In general.--Subsection (c) of section 38 (relating to 
     limitation based on amount of tax) is amended by 
     redesignating paragraph (3) as paragraph (4) and by inserting 
     after paragraph (2) the following new paragraph:
       ``(3) Special rules for new york liberty zone business 
     employee credit.--
       ``(A) In general.--In the case of the New York Liberty Zone 
     business employee credit--
       ``(i) this section and section 39 shall be applied 
     separately with respect to such credit, and
       ``(ii) in applying paragraph (1) to such credit--

       ``(I) the tentative minimum tax shall be treated as being 
     zero, and
       ``(II) the limitation under paragraph (1) (as modified by 
     subclause (I)) shall be reduced by the credit allowed under 
     subsection (a) for the taxable year (other than the New York 
     Liberty Zone business employee credit).

       ``(B) New york liberty zone business employee credit.--For 
     purposes of this subsection, the term `New York Liberty Zone 
     business employee credit' means the portion of work 
     opportunity credit under section 51 determined under section 
     1400L(a).''.
       (2) Conforming amendment.--Subclause (II) of section 
     38(c)(2)(A)(ii) is amended by inserting ``or the New York 
     Liberty Zone business employee credit'' after ``employment 
     credit''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to taxable years ending after December 31, 2001.
       (c) Clerical Amendment.--The table of subchapters for 
     chapter 1 is amended by adding at the end the following new 
     item:

``Subchapter Y--New York Liberty Zone Benefits.''.

            TITLE IV--MISCELLANEOUS AND TECHNICAL PROVISIONS

              Subtitle A--General Miscellaneous Provisions

     SEC. 401. ALLOWANCE OF ELECTRONIC 1099'S.

       Any person required to furnish a statement under any 
     section of subpart B of part III of subchapter A of chapter 
     61 of the Internal Revenue Code of 1986 for any taxable year 
     ending after the date of the enactment of this Act, may 
     electronically furnish such statement (without regard to any 
     first class mailing requirement) to any recipient who has 
     consented to the electronic provision of the statement in a 
     manner similar to the one permitted under regulations issued 
     under section 6051 of such Code or in such other manner as 
     provided by the Secretary.

     SEC. 402. EXCLUDED CANCELLATION OF INDEBTEDNESS INCOME OF S 
                   CORPORATION NOT TO RESULT IN ADJUSTMENT TO 
                   BASIS OF STOCK OF SHAREHOLDERS.

       (a) In General.--Subparagraph (A) of section 108(d)(7) 
     (relating to certain provisions to be applied at corporate 
     level) is amended by inserting before the period ``, 
     including by not taking into account under section 1366(a) 
     any amount excluded under subsection (a) of this section''.
       (b) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendment made by this section shall apply to discharges of 
     indebtedness after October 11, 2001, in taxable years ending 
     after such date.
       (2) Exception.--The amendment made by this section shall 
     not apply to any discharge of indebtedness before March 1, 
     2002, pursuant to a plan of reorganization filed with a 
     bankruptcy court on or before October 11, 2001.

     SEC. 403. LIMITATION ON USE OF NONACCRUAL EXPERIENCE METHOD 
                   OF ACCOUNTING.

       (a) In General.--Paragraph (5) of section 448(d) is amended 
     to read as follows:
       ``(5) Special rule for certain services.--
       ``(A) In general.--In the case of any person using an 
     accrual method of accounting with respect to amounts to be 
     received for the performance of services by such person, such 
     person shall not be required to accrue any portion of such 
     amounts which (on the basis of such person's experience) will 
     not be collected if--
       ``(i) such services are in fields referred to in paragraph 
     (2)(A), or
       ``(ii) such person meets the gross receipts test of 
     subsection (c) for all prior taxable years.
       ``(B) Exception.--This paragraph shall not apply to any 
     amount if interest is required to be paid on such amount or 
     there is any penalty for failure to timely pay such amount.
       ``(C) Regulations.--The Secretary shall prescribe 
     regulations to permit taxpayers to determine amounts referred 
     to in subparagraph (A) using computations or formulas which, 
     based on experience, accurately reflect the amount of income 
     that will not be collected by such person. A taxpayer may 
     adopt, or request consent of the Secretary to change to, a 
     computation or formula that clearly reflects the taxpayer's 
     experience. A request under the preceding sentence shall be 
     approved if such computation or formula clearly reflects the 
     taxpayer's experience.''.
       (b) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to taxable years ending after the date of the enactment 
     of this Act.
       (2) Change in method of accounting.--In the case of any 
     taxpayer required by the amendments made by this section to 
     change its method of accounting for its first taxable year 
     ending after the date of the enactment of this Act--
       (A) such change shall be treated as initiated by the 
     taxpayer,
       (B) such change shall be treated as made with the consent 
     of the Secretary of the Treasury, and
       (C) the net amount of the adjustments required to be taken 
     into account by the taxpayer under section 481 of the 
     Internal Revenue Code of 1986 shall be taken into account 
     over a period of 4 years (or if less, the number of taxable 
     years that the taxpayer used the method permitted under 
     section 448(d)(5) of such Code as in effect before the date 
     of the enactment of this Act) beginning with such first 
     taxable year.

     SEC. 404. EXCLUSION FOR FOSTER CARE PAYMENTS TO APPLY TO 
                   PAYMENTS BY QUALIFIED PLACEMENT AGENCIES.

       (a) In General.--The matter preceding subparagraph (B) of 
     section 131(b)(1) (defining qualified foster care payment) is 
     amended to read as follows:
       ``(1) In general.--The term `qualified foster care payment' 
     means any payment made pursuant to a foster care program of a 
     State or political subdivision thereof--
       ``(A) which is paid by--
       ``(i) a State or political subdivision thereof, or
       ``(ii) a qualified foster care placement agency, and''.
       (b) Qualified Foster Individuals To Include Individuals 
     Placed by Qualified Placement Agencies.--Subparagraph (B) of 
     section 131(b)(2) (defining qualified foster individual) is 
     amended to read as follows:
       ``(B) a qualified foster care placement agency.''.
       (c) Qualified Foster Care Placement Agency Defined.--
     Subsection (b) of section 131 is amended by redesignating 
     paragraph (3) as paragraph (4) and by inserting after 
     paragraph (2) the following new paragraph:
       ``(3) Qualified foster care placement agency.--The term 
     `qualified foster care placement agency' means any placement 
     agency which is licensed or certified by--
       ``(A) a State or political subdivision thereof, or
       ``(B) an entity designated by a State or political 
     subdivision thereof,
     for the foster care program of such State or political 
     subdivision to make foster care payments to providers of 
     foster care.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2001.

     SEC. 405. INTEREST RATE RANGE FOR ADDITIONAL FUNDING 
                   REQUIREMENTS.

       (a) Amendments to the Internal Revenue Code of 1986.--
       (1) Special rule.--Clause (i) of section 412(l)(7)(C) 
     (relating to interest rate) is amended by adding at the end 
     the following new subclause:

       ``(III) Special rule for 2002 and 2003.--For a plan year 
     beginning in 2002 or 2003, notwithstanding subclause (I), in 
     the case that the rate of interest used under subsection 
     (b)(5) exceeds the highest rate permitted under subclause 
     (I), the rate of interest used to determine current liability 
     under this subsection may exceed the rate of interest 
     otherwise permitted under subclause (I); except that such 
     rate of interest shall not exceed 120 percent of the weighted 
     average referred to in subsection (b)(5)(B)(ii).''.

       (2) Quarterly contributions.--Subsection (m) of section 412 
     is amended by adding at the end the following new paragraph:
       ``(7) Special rules for 2002 and 2004.--In any case in 
     which the interest rate used to determine current liability 
     is determined under subsection (l)(7)(C)(i)(III)--

[[Page H752]]

       ``(A) 2002.--For purposes of applying paragraphs (1) and 
     (4)(B)(ii) for plan years beginning in 2002, the current 
     liability for the preceding plan year shall be redetermined 
     using 120 percent as the specified percentage determined 
     under subsection (l)(7)(C)(i)(II).
       ``(B) 2004.--For purposes of applying paragraphs (1) and 
     (4)(B)(ii) for plan years beginning in 2004, the current 
     liability for the preceding plan year shall be redetermined 
     using 105 percent as the specified percentage determined 
     under subsection (l)(7)(C)(i)(II).''.
       (b) Amendments to the Employee Retirement Income Security 
     Act of 1974.--
       (1) Special rule.--Clause (i) of section 302(d)(7)(C) of 
     such Act (29 U.S.C. 1082(d)(7)(C)) is amended by adding at 
     the end the following new subclause:

       ``(III) Special rule for 2002 and 2003.--For a plan year 
     beginning in 2002 or 2003, notwithstanding subclause (I), in 
     the case that the rate of interest used under subsection 
     (b)(5) exceeds the highest rate permitted under subclause 
     (I), the rate of interest used to determine current liability 
     under this subsection may exceed the rate of interest 
     otherwise permitted under subclause (I); except that such 
     rate of interest shall not exceed 120 percent of the weighted 
     average referred to in subsection (b)(5)(B)(ii).''.

       (2) Quarterly contributions.--Subsection (e) of section 302 
     of such Act (29 U.S.C. 1082) is amended by adding at the end 
     the following new paragraph:
       ``(7) Special rules for 2002 and 2004.--In any case in 
     which the interest rate used to determine current liability 
     is determined under subsection (d)(7)(C)(i)(III)--
       ``(A) 2002.--For purposes of applying paragraphs (1) and 
     (4)(B)(ii) for plan years beginning in 2002, the current 
     liability for the preceding plan year shall be redetermined 
     using 120 percent as the specified percentage determined 
     under subsection (d)(7)(C)(i)(II).
       ``(B) 2004.--For purposes of applying paragraphs (1) and 
     (4)(B)(ii) for plan years beginning in 2004, the current 
     liability for the preceding plan year shall be redetermined 
     using 105 percent as the specified percentage determined 
     under subsection (d)(7)(C)(i)(II).''.
       (c) PBGC.--Clause (iii) of section 4006(a)(3)(E) of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1306(a)(3)(E)) is amended by adding at the end the following 
     new subclause:
       ``(IV) In the case of plan years beginning after December 
     31, 2001, and before January 1, 2004, subclause (II) shall be 
     applied by substituting `100 percent' for `85 percent'. 
     Subclause (III) shall be applied for such years without 
     regard to the preceding sentence. Any reference to this 
     clause by any other sections or subsections shall be treated 
     as a reference to this clause without regard to this 
     subclause.''.

     SEC. 406. ADJUSTED GROSS INCOME DETERMINED BY TAKING INTO 
                   ACCOUNT CERTAIN EXPENSES OF ELEMENTARY AND 
                   SECONDARY SCHOOL TEACHERS.

       (a) In General.--Section 62(a)(2) (relating to certain 
     trade and business deductions of employees) is amended by 
     adding at the end the following:
       ``(D) Certain expenses of elementary and secondary school 
     teachers.--In the case of taxable years beginning during 2002 
     or 2003, the deductions allowed by section 162 which consist 
     of expenses, not in excess of $250, paid or incurred by an 
     eligible educator in connection with books, supplies (other 
     than nonathletic supplies for courses of instruction in 
     health or physical education), computer equipment (including 
     related software and services) and other equipment, and 
     supplementary materials used by the eligible educator in the 
     classroom.''.
       (b) Eligible Educator.--Section 62 is amended by adding at 
     the end the following:
       ``(d) Definition; Special Rules.--
       ``(1) Eligible educator.--
       ``(A) In general.--For purposes of subsection (a)(2)(D), 
     the term `eligible educator' means, with respect to any 
     taxable year, an individual who is a kindergarten through 
     grade 12 teacher, instructor, counselor, principal, or aide 
     in a school for at least 900 hours during a school year.
       ``(B) School.--The term `school' means any school which 
     provides elementary education or secondary education 
     (kindergarten through grade 12), as determined under State 
     law.
       ``(2) Coordination with exclusions.--A deduction shall be 
     allowed under subsection (a)(2)(D) for expenses only to the 
     extent the amount of such expenses exceeds the amount 
     excludable under section 135, 529(c)(1), or 530(d)(2) for the 
     taxable year.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2001.

                   Subtitle B--Technical Corrections

     SEC. 411. AMENDMENTS RELATED TO ECONOMIC GROWTH AND TAX 
                   RELIEF RECONCILIATION ACT OF 2001.

       (a) Amendments Related to Section 101 of the Act.--
       (1) In general.--Subsection (b) of section 6428 is amended 
     to read as follows:
       ``(b) Credit Treated as Nonrefundable Personal Credit.--For 
     purposes of this title, the credit allowed under this section 
     shall be treated as a credit allowable under subpart A of 
     part IV of subchapter A of chapter 1.''.
       (2) Conforming amendments.--
       (A) Subsection (d) of section 6428 is amended to read as 
     follows:
       ``(d) Coordination with Advance Refunds of Credit.--
       ``(1) In general.--The amount of credit which would (but 
     for this paragraph) be allowable under this section shall be 
     reduced (but not below zero) by the aggregate refunds and 
     credits made or allowed to the taxpayer under subsection (e). 
     Any failure to so reduce the credit shall be treated as 
     arising out of a mathematical or clerical error and assessed 
     according to section 6213(b)(1).
       ``(2) Joint returns.--In the case of a refund or credit 
     made or allowed under subsection (e) with respect to a joint 
     return, half of such refund or credit shall be treated as 
     having been made or allowed to each individual filing such 
     return.''.
       (B) Paragraph (2) of section 6428(e) is amended to read as 
     follows:
       ``(2) Advance refund amount.--For purposes of paragraph 
     (1), the advance refund amount is the amount that would have 
     been allowed as a credit under this section for such first 
     taxable year if--
       ``(A) this section (other than subsections (b) and (d) and 
     this subsection) had applied to such taxable year, and
       ``(B) the credit for such taxable year were not allowed to 
     exceed the excess (if any) of--
       ``(i) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(ii) the sum of the credits allowable under part IV of 
     subchapter A of chapter 1 (other than the credits allowable 
     under subpart C thereof, relating to refundable credits).''
       (b) Amendment Related to Section 201 of the Act.--
     Subparagraph (B) of section 24(d)(1) is amended by striking 
     ``amount of credit allowed by this section'' and inserting 
     ``aggregate amount of credits allowed by this subpart''.
       (c) Amendments Related to Section 202 of the Act.--
       (1) Corrections to credit for adoption expenses.--
       (A) Paragraph (1) of section 23(a) is amended to read as 
     follows:
       ``(1) In general.--In the case of an individual, there 
     shall be allowed as a credit against the tax imposed by this 
     chapter the amount of the qualified adoption expenses paid or 
     incurred by the taxpayer.''
       (B) Subsection (a) of section 23 is amended by adding at 
     the end the following new paragraph:
       ``(3) $10,000 credit for adoption of child with special 
     needs regardless of expenses.--In the case of an adoption of 
     a child with special needs which becomes final during a 
     taxable year, the taxpayer shall be treated as having paid 
     during such year qualified adoption expenses with respect to 
     such adoption in an amount equal to the excess (if any) of 
     $10,000 over the aggregate qualified adoption expenses 
     actually paid or incurred by the taxpayer with respect to 
     such adoption during such taxable year and all prior taxable 
     years.''
       (C) Paragraph (2) of section 23(a) is amended by striking 
     the last sentence.
       (D) Paragraph (1) of section 23(b) is amended by striking 
     ``subsection (a)(1)(A)'' and inserting ``subsection (a)''.
       (E) Subsection (i) of section 23 is amended by striking 
     ``the dollar limitation in subsection (b)(1)'' and inserting 
     ``the dollar amounts in subsections (a)(3) and (b)(1)''.
       (F) Expenses paid or incurred during any taxable year 
     beginning before January 1, 2002, may be taken into account 
     in determining the credit under section 23 of the Internal 
     Revenue Code of 1986 only to the extent the aggregate of such 
     expenses does not exceed the applicable limitation under 
     section 23(b)(1) of such Code as in effect on the day before 
     the date of the enactment of the Economic Growth and Tax 
     Relief Reconciliation Act of 2001.
       (2) Corrections to exclusion for employer-provided adoption 
     assistance.--
       (A) Subsection (a) of section 137 is amended to read as 
     follows:
       ``(a) Exclusion.--
       ``(1) In general.--Gross income of an employee does not 
     include amounts paid or expenses incurred by the employer for 
     qualified adoption expenses in connection with the adoption 
     of a child by an employee if such amounts are furnished 
     pursuant to an adoption assistance program.
       ``(2) $10,000 exclusion for adoption of child with special 
     needs regardless of expenses.--In the case of an adoption of 
     a child with special needs which becomes final during a 
     taxable year, the qualified adoption expenses with respect to 
     such adoption for such year shall be increased by an amount 
     equal to the excess (if any) of $10,000 over the actual 
     aggregate qualified adoption expenses with respect to such 
     adoption during such taxable year and all prior taxable 
     years.''
       (B) Paragraph (2) of section 137(b) is amended by striking 
     ``subsection (a)(1)'' and inserting ``subsection (a)''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2002; except that the amendments made by paragraphs (1)(C), 
     (1)(D), and (2)(B) shall apply to taxable years beginning 
     after December 31, 2001.
       (d) Amendments Related to Section 205 of the Act.--
       (1) Section 45F(d)(4)(B) is amended by striking ``subpart 
     A, B, or D of this part'' and inserting ``this chapter or for 
     purposes of section 55''.
       (2) Section 38(b)(15) is amended by striking ``45F'' and 
     inserting ``45F(a)''.
       (e) Amendments Related to Section 301 of the Act.--
       (1) Section 63(c)(2) is amended--
       (A) in subparagraph (A), by striking ``subparagraph (C)'' 
     and inserting ``subparagraph (D)'',

[[Page H753]]

       (B) by striking ``or'' at the end of subparagraph (B),
       (C) by redesignating subparagraph (C) as subparagraph (D),
       (D) by inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) one-half of the amount in effect under subparagraph 
     (A) in the case of a married individual filing a separate 
     return, or'', and
       (E) by inserting the following flush sentence at the end:

     ``If any amount determined under subparagraph (A) is not a 
     multiple of $50, such amount shall be rounded to the next 
     lowest multiple of $50.''
       (2)(A) Section 63(c)(4) is amended by striking ``paragraph 
     (2) or (5)'' and inserting ``paragraph (2)(B), (2)(D), or 
     (5)''.
       (B) Section 63(c)(4)(B)(i) is amended by striking 
     ``paragraph (2)'' and inserting ``paragraph (2)(B), 
     (2)(D),''.
       (C) Section 63(c)(4) is amended by striking the flush 
     sentence at the end (as added by section 301(c)(2) of Public 
     Law 107-17).
       (f) Amendment Related to Section 401 of the Act.--Section 
     530(d)(4)(B)(iv) is amended by striking ``because the 
     taxpayer elected under paragraph (2)(C) to waive the 
     application of paragraph (2)'' and inserting ``by application 
     of paragraph (2)(C)(i)(II)''.
       (g) Amendments Related to Section 511 of the Act.--
       (1) Section 2511(c) is amended by striking ``taxable gift 
     under section 2503,'' and inserting ``transfer of property by 
     gift,''.
       (2) Section 2101(b) is amended by striking the last 
     sentence.
       (h) Amendment Related to Section 532 of the Act.--Section 
     2016 is amended by striking ``any State, any possession of 
     the United States, or the District of Columbia,''.
       (i) Amendments Relating to Section 602 of the Act.--
       (1) Subparagraph (A) of section 408(q)(3) is amended to 
     read as follows:
       ``(A) Qualified employer plan.--The term `qualified 
     employer plan' has the meaning given such term by section 
     72(p)(4)(A)(i); except that such term shall also include an 
     eligible deferred compensation plan (as defined in section 
     457(b)) of an eligible employer described in section 
     457(e)(1)(A).''.
       (2) Section 4(c) of Employee Retirement Income Security Act 
     of 1974 is amended--
       (A) by inserting ``and part 5 (relating to administration 
     and enforcement)'' before the period at the end, and
       (B) by adding at the end the following new sentence: ``Such 
     provisions shall apply to such accounts and annuities in a 
     manner similar to their application to a simplified employee 
     pension under section 408(k) of the Internal Revenue Code of 
     1986.''.
       (j) Amendments Relating to Section 611 of the Act.--
       (1) Section 408(k) is amended--
       (A) in paragraph (2)(C) by striking ``$300'' and inserting 
     ``$450'', and
       (B) in paragraph (8) by striking ``$300'' both places it 
     appears and inserting ``$450''.
       (2) Section 409(o)(1)(C)(ii) is amended--
       (A) by striking ``$500,000'' both places it appears and 
     inserting ``$800,000'', and
       (B) by striking ``$100,000'' and inserting ``$160,000''.
       (3) Section 611(i) of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 is amended by adding at the end 
     the following new paragraph:
       ``(3) Special rule.--In the case of plan that, on June 7, 
     2001, incorporated by reference the limitation of section 
     415(b)(1)(A) of the Internal Revenue Code of 1986, section 
     411(d)(6) of such Code and section 204(g)(1) of the Employee 
     Retirement Income Security Act of 1974 do not apply to a plan 
     amendment that--
       ``(A) is adopted on or before June 30, 2002,
       ``(B) reduces benefits to the level that would have applied 
     without regard to the amendments made by subsection (a) of 
     this section, and
       ``(C) is effective no earlier than the years described in 
     paragraph (2).''.
       (k) Amendments Relating to Section 613 of the Act.--
       (1) Section 416(c)(1)(C)(iii) is amended by striking 
     ``Exception for frozen plan'' and inserting ``Exception for 
     plan under which no key employee (or former key employee) 
     benefits for plan year''.
       (2) Section 416(g)(3)(B) is amended by striking 
     ``separation from service'' and inserting ``severance from 
     employment''.
       (l) Amendments Relating to Sections 614 and 616 of the 
     Act.--
       (1) Section 404(a)(12) is amended by striking ``(9),'' and 
     inserting ``(9) and subsection (h)(1)(C),''.
       (2) Section 404(n) is amended by striking ``subsection 
     (a),'' and inserting ``subsection (a) or paragraph (1)(C) of 
     subsection (h)''.
       (3) Section 402(h)(2)(A) is amended by striking ``15 
     percent'' and inserting ``25 percent''.
       (4) Section 404(a)(7)(C) is amended to read as follows:
       ``(C) Paragraph not to apply in certain cases.--
       ``(i) Beneficiary test.--This paragraph shall not have the 
     effect of reducing the amount otherwise deductible under 
     paragraphs (1), (2), and (3), if no employee is a beneficiary 
     under more than 1 trust or under a trust and an annuity plan.
       ``(ii) Elective deferrals.--If, in connection with 1 or 
     more defined contribution plans and 1 or more defined benefit 
     plans, no amounts (other than elective deferrals (as defined 
     in section 402(g)(3))) are contributed to any of the defined 
     contribution plans for the taxable year, then subparagraph 
     (A) shall not apply with respect to any of such defined 
     contribution plans and defined benefit plans.''.
       (m) Amendment Relating to Section 618 of the Act.--Section 
     25B(d)(2)(A) is amended to read as follows:
       ``(A) In general.--The qualified retirement savings 
     contributions determined under paragraph (1) shall be reduced 
     (but not below zero) by the aggregate distributions received 
     by the individual during the testing period from any entity 
     of a type to which contributions under paragraph (1) may be 
     made. The preceding sentence shall not apply to the portion 
     of any distribution which is not includible in gross income 
     by reason of a trustee-to-trustee transfer or a rollover 
     distribution.''.
       (n) Amendments Relating to Section 619 of the Act.--
       (1) Section 45E(e)(1) is amended by striking ``(n)'' and 
     inserting ``(m)''.
       (2) Section 619(d) of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 is amended by striking 
     ``established'' and inserting ``first effective''.
       (o) Amendments Relating to Section 631 of the Act.--
       (1) Section 402(g)(1) is amended by adding at the end the 
     following:
       ``(C) Catch-up contributions.--In addition to subparagraph 
     (A), in the case of an eligible participant (as defined in 
     section 414(v)), gross income shall not include elective 
     deferrals in excess of the applicable dollar amount under 
     subparagraph (B) to the extent that the amount of such 
     elective deferrals does not exceed the applicable dollar 
     amount under section 414(v)(2)(B)(i) for the taxable year 
     (without regard to the treatment of the elective deferrals by 
     an applicable employer plan under section 414(v)).''.
       (2) Section 401(a)(30) is amended by striking ``402(g)(1)'' 
     and inserting ``402(g)(1)(A)''.
       (3) Section 414(v)(2) is amended by adding at the end the 
     following:
       ``(D) Aggregation of plans.--For purposes of this 
     paragraph, plans described in clauses (i), (ii), and (iv) of 
     paragraph (6)(A) that are maintained by the same employer (as 
     determined under subsection (b), (c), (m) or (o)) shall be 
     treated as a single plan, and plans described in clause (iii) 
     of paragraph (6)(A) that are maintained by the same employer 
     shall be treated as a single plan.''.
       (4) Section 414(v)(3)(A)(i) is amended by striking 
     ``section 402(g), 402(h), 403(b), 404(a), 404(h), 408(k), 
     408(p), 415, or 457'' and inserting ``section 401(a)(30), 
     402(h), 403(b), 408, 415(c), and 457(b)(2) (determined 
     without regard to section 457(b)(3))''.
       (5) Section 414(v)(3)(B) is amended by striking ``section 
     401(a)(4), 401(a)(26), 401(k)(3), 401(k)(11), 401(k)(12), 
     403(b)(12), 408(k), 408(p), 408B, 410(b), or 416'' and 
     inserting ``section 401(a)(4), 401(k)(3), 401(k)(11), 
     403(b)(12), 408(k), 410(b), or 416''.
       (6) Section 414(v)(4)(B) is amended by inserting before the 
     period at the end the following: ``, except that a plan 
     described in clause (i) of section 410(b)(6)(C) shall not be 
     treated as a plan of the employer until the expiration of the 
     transition period with respect to such plan (as determined 
     under clause (ii) of such section)''.
       (7) Section 414(v)(5) is amended--
       (A) by striking ``, with respect to any plan year,'' in the 
     matter preceding subparagraph (A),
       (B) by amending subparagraph (A) to read as follows:
       ``(A) who would attain age 50 by the end of the taxable 
     year,'', and
       (C) in subparagraph (B) by striking ``plan year'' and 
     inserting ``plan (or other applicable) year''.
       (8) Section 414(v)(6)(C) is amended to read as follows:
       ``(C) Exception for section 457 plans.--This subsection 
     shall not apply to a participant for any year for which a 
     higher limitation applies to the participant under section 
     457(b)(3).''.
       (9) Section 457(e) is amended by adding at the end the 
     following new paragraph:
       ``(18) Coordination with catch-up contributions for 
     individuals age 50 or older.-- In the case of an individual 
     who is an eligible participant (as defined by section 414(v)) 
     and who is a participant in an eligible deferred compensation 
     plan of an employer described in paragraph (1)(A), 
     subsections (b)(3) and (c) shall be applied by substituting 
     for the amount otherwise determined under the applicable 
     subsection the greater of--
       ``(A) the sum of--
       ``(i) the plan ceiling established for purposes of 
     subsection (b)(2) (without regard to subsection (b)(3)), plus
       ``(ii) the applicable dollar amount for the taxable year 
     determined under section 414(v)(2)(B)(i), or
       ``(B) the amount determined under the applicable subsection 
     (without regard to this paragraph).''.
       (p) Amendments Relating to Section 632 of the Act.--
       (1) Section 403(b)(1) is amended in the matter following 
     subparagraph (E) by striking ``then amounts contributed'' and 
     all that follows and inserting the following:
       ``then contributions and other additions by such employer 
     for such annuity contract shall be excluded from the gross 
     income of the employee for the taxable year to the extent 
     that the aggregate of such contributions and additions (when 
     expressed as an annual addition (within the meaning of 
     section 415(c)(2))) does not exceed the applicable limit 
     under section 415. The amount actually

[[Page H754]]

     distributed to any distributee under such contract shall be 
     taxable to the distributee (in the year in which so 
     distributed) under section 72 (relating to annuities). For 
     purposes of applying the rules of this subsection to 
     contributions and other additions by an employer for a 
     taxable year, amounts transferred to a contract described in 
     this paragraph by reason of a rollover contribution described 
     in paragraph (8) of this subsection or section 
     408(d)(3)(A)(ii) shall not be considered contributed by such 
     employer.''.
       (2) Section 403(b) is amended by striking paragraph (6).
       (3) Section 403(b)(3) is amended--
       (A) in the first sentence by inserting the following before 
     the period at the end: ``, and which precedes the taxable 
     year by no more than five years'', and
       (B) in the second sentence by striking ``or any amount 
     received by a former employee after the fifth taxable year 
     following the taxable year in which such employee was 
     terminated''.
       (4) Section 415(c)(7) is amended to read as follows:
       ``(7) Special rules relating to church plans.--
       ``(A) Alternative contribution limitation.--
       ``(i) In general.--Notwithstanding any other provision of 
     this subsection, at the election of a participant who is an 
     employee of a church or a convention or association of 
     churches, including an organization described in section 
     414(e)(3)(B)(ii), contributions and other additions for an 
     annuity contract or retirement income account described in 
     section 403(b) with respect to such participant, when 
     expressed as an annual addition to such participant's 
     account, shall be treated as not exceeding the limitation of 
     paragraph (1) if such annual addition is not in excess of 
     $10,000.
       ``(ii) $40,000 aggregate limitation.--The total amount of 
     additions with respect to any participant which may be taken 
     into account for purposes of this subparagraph for all years 
     may not exceed $40,000.
       ``(B) Number of years of service for duly ordained, 
     commissioned, or licensed ministers or lay employees.--For 
     purposes of this paragraph--
       ``(i) all years of service by--

       ``(I) a duly ordained, commissioned, or licensed minister 
     of a church, or
       ``(II) a lay person,

     as an employee of a church, a convention or association of 
     churches, including an organization described in section 
     414(e)(3)(B)(ii), shall be considered as years of service for 
     1 employer, and
       ``(ii) all amounts contributed for annuity contracts by 
     each such church (or convention or association of churches) 
     or such organization during such years for such minister or 
     lay person shall be considered to have been contributed by 1 
     employer.
       ``(C) Foreign missionaries.--In the case of any individual 
     described in subparagraph (D) performing services outside the 
     United States, contributions and other additions for an 
     annuity contract or retirement income account described in 
     section 403(b) with respect to such employee, when expressed 
     as an annual addition to such employee's account, shall not 
     be treated as exceeding the limitation of paragraph (1) if 
     such annual addition is not in excess of the greater of 
     $3,000 or the employee's includible compensation determined 
     under section 403(b)(3).
       ``(D) Annual addition.--For purposes of this paragraph, the 
     term `annual addition' has the meaning given such term by 
     paragraph (2).
       ``(E) Church, convention or association of churches.--For 
     purposes of this paragraph, the terms `church' and 
     `convention or association of churches' have the same meaning 
     as when used in section 414(e).''.
       (5) Section 457(e)(5) is amended to read as follows:
       ``(5) Includible compensation.--The term `includible 
     compensation' has the meaning given to the term 
     `participant's compensation' by section 415(c)(3).''.
       (6) Section 402(g)(7)(B) is amended by striking ``2001.'' 
     and inserting ``2001).''.
       (q) Amendments Relating to Section 643 of the Act.--
       (1) Section 401(a)(31)(C)(i) is amended by inserting ``is a 
     qualified trust which is part of a plan which is a defined 
     contribution plan and'' before ``agrees''.
       (2) Section 402(c)(2) is amended by adding at the end the 
     following flush sentence:

     ``In the case of a transfer described in subparagraph (A) or 
     (B), the amount transferred shall be treated as consisting 
     first of the portion of such distribution that is includible 
     in gross income (determined without regard to paragraph 
     (1)).''.
       (r) Amendments Relating to Section 648 of the Act.--
       (1) Section 417(e) is amended--
       (A) in paragraph (1) by striking ``exceed the dollar limit 
     under section 411(a)(11)(A)'' and inserting ``exceed the 
     amount that can be distributed without the participant's 
     consent under section 411(a)(11)'', and
       (B) in paragraph (2)(A) by striking ``exceeds the dollar 
     limit under section 411(a)(11)(A)'' and inserting ``exceeds 
     the amount that can be distributed without the participant's 
     consent under section 411(a)(11)''.
       (2) Section 205(g) of the Employee Retirement Income 
     Security Act of 1974 is amended--
       (A) in paragraph (1) by striking ``exceed the dollar limit 
     under section 203(e)(1)'' and inserting ``exceed the amount 
     that can be distributed without the participant's consent 
     under section 203(e)'', and
       (B) in paragraph (2)(A) by striking ``exceeds the dollar 
     limit under section 203(e)(1)'' and inserting ``exceeds the 
     amount that can be distributed without the participant's 
     consent under section 203(e)''.
       (s) Amendment Relating to Section 652 of the Act.--Section 
     404(a)(1)(D)(iv) is amended by striking ``Plans maintained by 
     professional service employers'' and inserting ``Special rule 
     for terminating plans''.
       (t) Amendments Relating to Section 657 of the Act.--Section 
     404(c)(3) of the Employee Retirement Income Security Act of 
     1974 is amended--
       (1) by striking ``the earlier of'' in subparagraph (A) the 
     second place it appears, and
       (2) by striking ``if the transfer'' and inserting ``a 
     transfer that''.
       (u) Amendments Relating to Section 659 of the Act.--
       (1) Section 4980F is amended--
       (A) in subsection (e)(1) by striking ``written notice'' and 
     inserting ``the notice described in paragraph (2)'',
       (B) by amending subsection (f)(2)(A) to read as follows:
       ``(A) any defined benefit plan described in section 401(a) 
     which includes a trust exempt from tax under section 501(a), 
     or'', and
       (C) in subsection (f)(3) by striking ``significantly'' both 
     places it appears.
       (2) Section 204(h)(9) of the Employee Retirement Income 
     Security Act of 1974 is amended by striking ``significantly'' 
     both places it appears.
       (3) Section 659(c)(3)(B) of the Economic Growth and Tax 
     Relief Reconciliation Act of 2001 is amended by striking 
     ``(or'' and inserting ``(and''.
       (v) Amendments Relating to Section 661 of the Act.--
       (1) Section 412(c)(9)(B) is amended--
       (A) in clause (ii) by striking ``125 percent'' and 
     inserting ``100 percent'', and
       (B) by adding at the end the following new clause:
       ``(iv) Limitation.--A change in funding method to use a 
     prior year valuation, as provided in clause (ii), may not be 
     made unless as of the valuation date within the prior plan 
     year, the value of the assets of the plan are not less than 
     125 percent of the plan's current liability (as defined in 
     paragraph (7)(B)).''.
       (2) Section 302(c)(9)(B) of the Employee Retirement Income 
     Security Act of 1974 is amended--
       (A) in clause (ii) by striking ``125 percent'' and 
     inserting ``100 percent'', and
       (B) by adding at the end the following new clause:
       ``(iv) A change in funding method to use a prior year 
     valuation, as provided in clause (ii), may not be made unless 
     as of the valuation date within the prior plan year, the 
     value of the assets of the plan are not less than 125 percent 
     of the plan's current liability (as defined in paragraph 
     (7)(B)).''.
       (w) Amendments Relating to Section 662 of the Act.--
       (1) Section 404(k) is amended--
       (A) in paragraph (1) by striking ``during the taxable 
     year'',
       (B) in paragraph (2)(B) by striking ``(A)(iii)'' and 
     inserting ``(A)(iv)'',
       (C) in paragraph (4)(B) by striking ``(iii)'' and inserting 
     ``(iv)'', and
       (D) by redesignating subparagraph (B) of paragraph (4) (as 
     amended by subparagraph (C)) as subparagraph (C) of paragraph 
     (4) and by inserting after subparagraph (A) the following new 
     subparagraph:
       ``(B) Reinvestment dividends.--For purposes of subparagraph 
     (A), an applicable dividend reinvested pursuant to clause 
     (iii)(II) of paragraph (2)(A) shall be treated as paid in the 
     taxable year of the corporation in which such dividend is 
     reinvested in qualifying employer securities or in which the 
     election under clause (iii) of paragraph (2)(A) is made, 
     whichever is later.''.
       (2) Section 404(k) is amended by adding at the end the 
     following new paragraph:
       ``(7) Full vesting.--In accordance with section 411, an 
     applicable dividend described in clause (iii)(II) of 
     paragraph (2)(A) shall be subject to the requirements of 
     section 411(a)(1).''.
       (x) Effective Date.--Except as provided in subsection (c), 
     the amendments made by this section shall take effect as if 
     included in the provisions of the Economic Growth and Tax 
     Relief Reconciliation Act of 2001 to which they relate.

     SEC. 412. AMENDMENTS RELATED TO COMMUNITY RENEWAL TAX RELIEF 
                   ACT OF 2000.

       (a) Amendment Related to Section 101 of the Act.--Section 
     469(i)(3)(E) is amended by striking clauses (ii), (iii), and 
     (iv) and inserting the following:
       ``(ii) second to the portion of such loss to which 
     subparagraph (C) applies,
       ``(iii) third to the portion of the passive activity credit 
     to which subparagraph (B) or (D) does not apply,
       ``(iv) fourth to the portion of such credit to which 
     subparagraph (B) applies, and''.
       (b) Amendment Related to Section 306 of the Act.--Section 
     151(c)(6)(C) is amended--
       (1) by striking ``for earned income credit.--For purposes 
     of section 32, an'' and inserting ``for principal place of 
     abode requirements.--An'', and
       (2) by striking ``requirement of section 32(c)(3)(A)(ii)'' 
     and inserting ``principal place of abode requirements of 
     section 2(a)(1)(B), section 2(b)(1)(A), and section 
     32(c)(3)(A)(ii)''.

[[Page H755]]

       (c) Amendment Related to Section 309 of the Act.--
     Subparagraph (A) of section 358(h)(1) is amended to read as 
     follows:
       ``(A) which is assumed by another person as part of the 
     exchange, and''.
       (d) Amendments Related to Section 401 of the Act.--
       (1)(A) Section 1234A is amended by inserting ``or'' after 
     the comma at the end of paragraph (1), by striking ``or'' at 
     the end of paragraph (2), and by striking paragraph (3).
       (B)(i) Section 1234B is amended in subsection (a)(1) and in 
     subsection (b) by striking ``sale or exchange'' the first 
     place it appears in each subsection and inserting ``sale, 
     exchange, or termination''.
       (ii) Section 1234B is amended by adding at the end the 
     following new subsection:
       ``(f) Cross Reference.--

  ``For special rules relating to dealer securities futures contracts, 
see section 1256.''

       (2) Section 1091(e) is amended--
       (A) in the heading, by striking ``Securities.--'' and 
     inserting ``Securities and Securities Futures Contracts To 
     Sell.--'',
       (B) by inserting after ``closing of a short sale of'' the 
     following: ``(or the sale, exchange, or termination of a 
     securities futures contract to sell)'',
       (C) in paragraph (2), by inserting after ``short sale of'' 
     the following: ``(or securities futures contracts to sell)'', 
     and
       (D) by adding at the end the following:
     ``For purposes of this subsection, the term `securities 
     futures contract' has the meaning provided by section 
     1234B(c).''.
       (3)(A) Section 1233(e)(2) is amended by striking ``and'' at 
     the end of subparagraph (C), by striking the period and 
     inserting ``; and'' at the end of subparagraph (D), and 
     inserting after subparagraph (D) the following:
       ``(E) entering into a securities futures contract (as so 
     defined) to sell shall be considered to be a short sale, and 
     the settlement of such contract shall be considered to be the 
     closing of such short sale.''.
       (B) Section 1234B(b) is amended by inserting after ``or 
     this section,'' the following: ``or in section 1233,''
       (e) Effective Date.--The amendments made by this section 
     shall take effect as if included in the provisions of the 
     Community Renewal Tax Relief Act of 2000 to which they 
     relate.

     SEC. 413. AMENDMENTS RELATED TO THE TAX RELIEF EXTENSION ACT 
                   OF 1999.

       (a) Amendments Related to Section 545 of the Act.--Section 
     857(b)(7) is amended--
       (1) in clause (i) of subparagraph (B), by striking ``the 
     amount of which'' and inserting ``to the extent the amount of 
     the rents'', and
       (2) in subparagraph (C), by striking ``if the amount'' and 
     inserting ``to the extent the amount''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect as if included in section 545 of the Tax 
     Relief Extension Act of 1999.

     SEC. 414. AMENDMENTS RELATED TO THE TAXPAYER RELIEF ACT OF 
                   1997.

       (a) Amendments Related to Section 311 of the Act.--Section 
     311(e) of the Taxpayer Relief Act of 1997 (Public Law 105-34; 
     111 Stat. 836) is amended--
       (1) in paragraph (2)(A), by striking ``recognized'' and 
     inserting ``included in gross income'', and
       (2) by adding at the end the following new paragraph:
       ``(5) Disposition of interest in passive activity.--Section 
     469(g)(1)(A) of the Internal Revenue Code of 1986 shall not 
     apply by reason of an election made under paragraph (1).''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect as if included in section 311 of the 
     Taxpayer Relief Act of 1997.

     SEC. 415. AMENDMENT RELATED TO THE BALANCED BUDGET ACT OF 
                   1997.

       (a) Amendment Related to Section 4006 of the Act.--Section 
     26(b)(2) is amended by striking ``and'' at the end of 
     subparagraph (P), by striking the period and inserting ``, 
     and'' at the end of subparagraph (Q), and by adding at the 
     end the following new subparagraph:
       ``(R) section 138(c)(2) (relating to penalty for 
     distributions from Medicare+Choice MSA not used for qualified 
     medical expenses if minimum balance not maintained).''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in section 4006 of the 
     Balanced Budget Act of 1997.

     SEC. 416. OTHER TECHNICAL CORRECTIONS.

       (a) Coordination of Advanced Payments of Earned Income 
     Credit.--
       (1) Section 32(g)(2) is amended by striking ``subpart'' and 
     inserting ``part''.
       (2) The amendment made by this subsection shall take effect 
     as if included in section 474 of the Tax Reform Act of 1984.
       (b) Special Rule Related to Wash Sale Losses.--
       (1) Section 1256(f) is amended by adding at the end the 
     following new paragraph:
       ``(5) Special rule related to losses.--Section 1091 
     (relating to loss from wash sales of stock or securities) 
     shall not apply to any loss taken into account by reason of 
     paragraph (1) of subsection (a).''.
       (2) The amendment made by this subsection shall take effect 
     as if included in section 5075 of the Technical and 
     Miscellaneous Revenue Act of 1988.
       (c) Disclosure by Social Security Administration to Federal 
     Child Support Agencies.--
       (1) Section 6103(l)(8) is amended--
       (A) in the heading, by striking ``state and local'' and 
     inserting ``federal, state, and local'', and
       (B) in subparagraph (A), by inserting ``Federal or'' before 
     ``State or local''.
       (2) The amendments made by this subsection shall take 
     effect on the date of the enactment of this Act.
       (d) Treatment of Settlements Under Partnership Audit 
     Rules.--
       (1) The following provisions are each amended by inserting 
     ``or the Attorney General (or his delegate)'' after 
     ``Secretary'' each place it appears:
       (A) Paragraphs (1) and (2) of section 6224(c).
       (B) Section 6229(f)(2).
       (C) Section 6231(b)(1)(C).
       (D) Section 6234(g)(4)(A).
       (2) The amendments made by this subsection shall apply with 
     respect to settlement agreements entered into after the date 
     of the enactment of this Act.
       (e) Amendment Related to Procedure and Administration.--
       (1) Section 6331(k)(3) (relating to no levy while certain 
     offers pending or installment agreement pending or in effect) 
     is amended to read as follows:
       ``(3) Certain rules to apply.--Rules similar to the rules 
     of--
       ``(A) paragraphs (3) and (4) of subsection (i), and
       ``(B) except in the case of paragraph (2)(C), paragraph (5) 
     of subsection (i),
     shall apply for purposes of this subsection.''.
       (2) The amendment made by this subsection shall take effect 
     on the date of the enactment of this Act.
       (f) Modified Endowment Contracts.--Paragraph (2) of section 
     318(a) of the Community Renewal Tax Relief Act of 2000 (114 
     Stat. 2763A-645) is repealed, and clause (ii) of section 
     7702A(c)(3)(A) shall read and be applied as if the amendment 
     made by such paragraph had not been enacted.

     SEC. 417. CLERICAL AMENDMENTS.

       (1) The subsection (g) of section 25B that relates to 
     termination is redesignated as subsection (h).
       (2) The second sentence of section 42(h)(3)(C) is amended 
     by striking ``the amounts described in'' and all that follows 
     through the period and inserting ``the amounts described in 
     clauses (ii) through (iv) over the aggregate housing credit 
     dollar amount allocated for such year.''
       (3) Clause (ii) of section 42(m)(1)(B) is amended by 
     striking the second ``and'' at the end of subclause (II) and 
     by inserting ``and'' at the end of subclause (III).
       (4) Section 51A(c)(1) is amended by striking ``51(d)(10)'' 
     and inserting ``51(d)(11)''.
       (5) The flush sentence at the end of clause (ii) of section 
     56(a)(1)(A) is amended by striking ``such 1250'' and 
     inserting ``such section 1250''.
       (6) Section 151(c)(6)(B)(iii) is amended by inserting 
     ``as'' before ``such terms''.
       (7) Section 170(e)(6)(B)(i)(III) is amended by striking 
     ``2000,'' and inserting ``2000),''.
       (8) Section 172(b)(1)(F)(i) is amended--
       (A) by striking ``3 years'' and inserting ``3 taxable 
     years'', and
       (B) by striking ``2 years'' and inserting ``2 taxable 
     years''.
       (9) Section 351(h)(1) is amended by inserting a comma after 
     ``liability''.
       (10) Section 475(g)(3) is amended by striking ``sections'' 
     and inserting ``section''.
       (11) Section 529(e)(3)(B)(i) is amended by striking 
     ``subsection (b)(7)'' and inserting ``subsection (b)(6)''.
       (12) Section 741 is amended by striking ``which have 
     appreciated substantially in value''.
       (13) Section 857(b)(7)(B)(i) is amended by striking 
     ``subsection 856(d)'' and inserting ``section 856(d)''.
       (14) Subparagraph (B) of section 943(e)(4) is amended by 
     aligning the left margin of the flush language with 
     subparagraph (A).
       (15) Subparagraph (B) of section 995(b)(3) is amended by 
     striking ``International Security Assistance and Arms Export 
     Control Act of 1976'' and inserting ``Arms Export Control 
     Act''.
       (16) Section 1394(c)(2) is amended by striking 
     ``subparagraph (A)'' and inserting ``paragraph (1)''.
       (17)(A) The section heading for section 4980E is amended to 
     read as follows:

     ``SEC. 4980E. FAILURE OF EMPLOYER TO MAKE COMPARABLE ARCHER 
                   MSA CONTRIBUTIONS.''.

       (B) The item relating to section 4980E in the table of 
     sections for chapter 43 is amended to read as follows:

``Sec. 4980E. Failure of employer to make comparable Archer MSA 
              contributions.''.

       (18) Section 6105(c)(1) is amended by striking ``any'' in 
     subparagraphs (C) and (E).
       (19)(A) Section 6227(d) is amended by striking ``subsection 
     (b)'' and inserting ``subsection (c)''.
       (B) Section 6228 is amended--
       (i) in subsection (a)(1), by striking ``subsection (b) of 
     section 6227'' and inserting ``subsection (c) of section 
     6227'',
       (ii) in subsection (a)(3)(A), by striking ``subsection (b) 
     of'', and
       (iii) in subsections (b)(1) and (b)(2)(A), by striking 
     ``subsection (c) of section 6227'' and inserting ``subsection 
     (d) of section 6227''.
       (C) Section 6231(b)(2)(B)(i) is amended by striking 
     ``section 6227(c)'' and inserting ``section 6227(d)''.
       (20) Section 1221(b)(1)(B)(i) is amended by striking 
     ``1256(b))'' and inserting ``1256(b)))''.

[[Page H756]]

       (21) Section 159 of the Community Renewal Tax Relief Act of 
     2000 (114 Stat. 2763A-624) is amended by striking 
     ``fuctions'' and inserting ``functions''.
       (22) The amendment to section 170(e)(6)(B)(iv) made by 
     section 165(b)(1) of the Community Renewal Tax Relief Act of 
     2000 (114 Stat. 2763A-626) shall be applied as if it struck 
     ``in any of the grades K-12''.
       (23) Section 618(b)(2) of the Economic Growth and Tax 
     Relief Reconciliation Act of 2001 (Public Law 107-16; 115 
     Stat. 108) is amended--
       (A) in subparagraph (A) by striking ``203(d)'' and 
     inserting ``202(f)'', and
       (B) in subparagraphs (C), (D), and (E) by striking ``203'' 
     and inserting ``202(f)''.
       (24)(A) Section 525 of the Ticket to Work and Work 
     Incentives Improvement Act of 1999 (Public Law 106-170; 113 
     Stat. 1928) is amended by striking ``7200'' and inserting 
     ``7201''.
       (B) Section 532(c)(2) of such Act (113 Stat. 1930) is 
     amended--
       (i) in subparagraph (D), by striking ``341(d)(3)'' and 
     inserting ``341(d)'', and
       (ii) in subparagraph (Q), by striking ``954(c)(1)(B)(iii) 
     and inserting ``954(c)(1)(B)''.

     SEC. 418. ADDITIONAL CORRECTIONS.

       (a) Amendments Related to Section 202 of the Economic 
     Growth and Tax Relief Reconciliation Act of 2001.--
       (1) Subsection (h) of section 23 is amended--
       (A) by striking ``subsection (a)(1)(B)'' and inserting 
     ``subsection (a)(3)'', and
       (B) by adding at the end the following new flush sentence:

     ``If any amount as increased under the preceding sentence is 
     not a multiple of $10, such amount shall be rounded to the 
     nearest multiple of $10.''
       (2) Subsection (f) of section 137 is amended by adding at 
     the end the following new flush sentence:

     ``If any amount as increased under the preceding sentence is 
     not a multiple of $10, such amount shall be rounded to the 
     nearest multiple of $10.''
       (b) Amendments Related to Section 204 of the Economic 
     Growth and Tax Relief Reconciliation Act of 2001.--Section 
     21(d)(2) is amended--
       (1) in subparagraph (A) by striking ``$200'' and inserting 
     ``$250'', and
       (2) in subparagraph (B) by striking ``$400'' and inserting 
     ``$500''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect as if included in the provisions of the 
     Economic Growth and Tax Relief Reconciliation Act of 2001 to 
     which they relate.

   TITLE V--SOCIAL SECURITY HELD HARMLESS; BUDGETARY TREATMENT OF ACT

     SEC. 501. NO IMPACT ON SOCIAL SECURITY TRUST FUNDS.

       (a) In General.--Nothing in this Act (or an amendment made 
     by this Act) shall be construed to alter or amend title II of 
     the Social Security Act (or any regulation promulgated under 
     that Act).
       (b) Transfers.--
       (1) Estimate of secretary.--The Secretary of the Treasury 
     shall annually estimate the impact that the enactment of this 
     Act has on the income and balances of the trust funds 
     established under section 201 of the Social Security Act (42 
     U.S.C. 401).
       (2) Transfer of funds.--If, under paragraph (1), the 
     Secretary of the Treasury estimates that the enactment of 
     this Act has a negative impact on the income and balances of 
     the trust funds established under section 201 of the Social 
     Security Act (42 U.S.C. 401), the Secretary shall transfer, 
     not less frequently than quarterly, from the general revenues 
     of the Federal Government an amount sufficient so as to 
     ensure that the income and balances of such trust funds are 
     not reduced as a result of the enactment of this Act.

     SEC. 502. 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.

          TITLE VI--EXTENSIONS OF CERTAIN EXPIRING PROVISIONS

     SEC. 601. ALLOWANCE OF NONREFUNDABLE PERSONAL CREDITS AGAINST 
                   REGULAR AND MINIMUM TAX LIABILITY.

       (a) In General.--Paragraph (2) of section 26(a) is 
     amended--
       (1) by striking ``rule for 2000 and 2001.--'' and inserting 
     ``rule for 2000, 2001, 2002, and 2003.--'', and
       (2) by striking ``during 2000 or 2001,'' and inserting 
     ``during 2000, 2001, 2002, or 2003,''.
       (b) Conforming Amendments.--
       (1) Section 904(h) is amended by striking ``during 2000 or 
     2001'' and inserting ``during 2000, 2001, 2002, or 2003''.
       (2) The amendments made by sections 201(b), 202(f), and 
     618(b) of the Economic Growth and Tax Relief Reconciliation 
     Act of 2001 shall not apply to taxable years beginning during 
     2002 and 2003.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2001.

     SEC. 602. CREDIT FOR QUALIFIED ELECTRIC VEHICLES.

       (a) In General.--Section 30 is amended--
       (1) in subsection (b)(2)--
       (A) by striking ``December 31, 2001,'' and inserting 
     ``December 31, 2003,'', and
       (B) in subparagraphs (A), (B), and (C), by striking 
     ``2002'', ``2003'', and ``2004'', respectively, and inserting 
     ``2004'', ``2005'', and ``2006'', respectively, and
       (2) in subsection (e), by striking ``December 31, 2004'' 
     and inserting ``December 31, 2006''.
       (b) Conforming Amendments.--
       (1) Subparagraph (C) of section 280F(a)(1) is amended by 
     adding at the end the following new clause:
       ``(iii) Application of subparagraph.--This subparagraph 
     shall apply to property placed in service after August 5, 
     1997, and before January 1, 2007.''.
       (2) Subsection (b) of section 971 of the Taxpayer Relief 
     Act of 1997 is amended by striking ``and before January 1, 
     2005''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2001.

     SEC. 603. CREDIT FOR ELECTRICITY PRODUCED FROM CERTAIN 
                   RENEWABLE RESOURCES.

       (a) In General.--Subparagraphs (A), (B), and (C) of section 
     45(c)(3) are both amended by striking ``2002'' and inserting 
     ``2004''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to facilities placed in service after December 
     31, 2001.

     SEC. 604. WORK OPPORTUNITY CREDIT.

       (a) In General.--Subparagraph (B) of section 51(c)(4) is 
     amended by striking ``2001'' and inserting ``2003''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to individuals who begin work for the employer 
     after December 31, 2001.

     SEC. 605. WELFARE-TO-WORK CREDIT.

       (a) In General.--Subsection (f) of section 51A is amended 
     by striking ``2001'' and inserting ``2003''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to individuals who begin work for the employer 
     after December 31, 2001.

     SEC. 606. DEDUCTION FOR CLEAN-FUEL VEHICLES AND CERTAIN 
                   REFUELING PROPERTY.

       (a) In General.--Section 179A is amended--
       (1) in subsection (b)(1)(B)--
       (A) by striking ``December 31, 2001,'' and inserting 
     ``December 31, 2003,'', and
       (B) in clauses (i), (ii), and (iii), by striking ``2002'', 
     ``2003'', and ``2004'', respectively, and inserting ``2004'', 
     ``2005'', and ``2006'', respectively, and
       (2) in subsection (f), by striking ``December 31, 2004'' 
     and inserting ``December 31, 2006''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to property placed in service after December 31, 
     2001.

     SEC. 607. TAXABLE INCOME LIMIT ON PERCENTAGE DEPLETION FOR 
                   OIL AND NATURAL GAS PRODUCED FROM MARGINAL 
                   PROPERTIES.

       (a) In General.--Subparagraph (H) of section 613A(c)(6) is 
     amended by striking ``2002'' and inserting ``2004''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to taxable years beginning after December 31, 
     2001.

     SEC. 608. QUALIFIED ZONE ACADEMY BONDS.

       (a) In General.--Paragraph (1) of section 1397E(e) is 
     amended by striking ``2000, and 2001'' and inserting ``2000, 
     2001, 2002, and 2003''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to obligations issued after the date of the 
     enactment of this Act.

     SEC. 609. COVER OVER OF TAX ON DISTILLED SPIRITS.

       (a) In General.--Paragraph (1) of section 7652(f) is 
     amended by striking ``January 1, 2002'' and inserting 
     ``January 1, 2004''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to articles brought into the United States after 
     December 31, 2001.

     SEC. 610. PARITY IN THE APPLICATION OF CERTAIN LIMITS TO 
                   MENTAL HEALTH BENEFITS.

       (a) In General.--Subsection (f) of section 9812, as amended 
     by the Departments of Labor, Health and Human Services, and 
     Education, and Related Agencies Appropriations Act, 2002, is 
     amended to read as follows:
       ``(f) Application of Section.--This section shall not apply 
     to benefits for services furnished--
       ``(1) on or after September 30, 2001, and before January 
     10, 2002, and
       ``(2) after December 31, 2003.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to plan years beginning after December 31, 2000.

     SEC. 611. TEMPORARY SPECIAL RULES FOR TAXATION OF LIFE 
                   INSURANCE COMPANIES.

       (a) Reduction in Mutual Life Insurance Company Deductions 
     Not To Apply in Certain Years.--Section 809 (relating to 
     reduction in certain deductions of material life insurance 
     companies) is amended by adding at the end the following:

[[Page H757]]

       ``(j) Differential Earnings Rate Treated as Zero for 
     Certain Years.--Notwithstanding subsection (c) or (f), the 
     differential earnings rate shall be treated as zero for 
     purposes of computing both the differential earnings amount 
     and the recomputed differential earnings amount for a mutual 
     life insurance company's taxable years beginning in 2001, 
     2002, or 2003.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.

     SEC. 612. AVAILABILITY OF MEDICAL SAVINGS ACCOUNTS.

       (a) In General.--Paragraphs (2) and (3)(B) of section 
     220(i) (defining cut-off year) are each amended by striking 
     ``2002'' each place it appears and inserting ``2003''.
       (b) Conforming Amendments.--
       (1) Paragraph (2) of section 220(j) is amended by striking 
     ``1998, 1999, or 2001'' each place it appears and inserting 
     ``1998, 1999, 2001, or 2002''.
       (2) Subparagraph (A) of section 220(j)(4) is amended by 
     striking ``and 2001'' and inserting ``2001, and 2002''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 2002.

     SEC. 613. INCENTIVES FOR INDIAN EMPLOYMENT AND PROPERTY ON 
                   INDIAN RESERVATIONS.

       (a) Employment.--Subsection (f) of section 45A is amended 
     by striking ``December 31, 2003'' and inserting ``December 
     31, 2004''.
       (b) Property.--Paragraph (8) of section 168(j) is amended 
     by striking ``December 31, 2003'' and inserting ``December 
     31, 2004''.

     SEC. 614. SUBPART F EXEMPTION FOR ACTIVE FINANCING.

       (a) In General.--
       (1) Section 953(e)(10) is amended--
       (A) by striking ``January 1, 2002'' and inserting ``January 
     1, 2007'', and
       (B) by striking ``December 31, 2001'' and inserting 
     ``December 31, 2006''.
       (2) Section 954(h)(9) is amended by striking ``January 1, 
     2002'' and inserting ``January 1, 2007''.
       (b) Life Insurance and Annuity Contracts.--
       (1) In general.--Subparagraph (B) of section 954(i)(4) is 
     amended to read as follows:
       ``(B) Life insurance and annuity contracts.--
       ``(i) In general.--Except as provided in clause (ii), the 
     amount of the reserve of a qualifying insurance company or 
     qualifying insurance company branch for any life insurance or 
     annuity contract shall be equal to the greater of--

       ``(I) the net surrender value of such contract (as defined 
     in section 807(e)(1)(A)), or
       ``(II) the reserve determined under paragraph (5).

       ``(ii) Ruling request, etc.--The amount of the reserve 
     under clause (i) shall be the foreign statement reserve for 
     the contract (less any catastrophe, deficiency, equalization, 
     or similar reserves), if, pursuant to a ruling request 
     submitted by the taxpayer or as provided in published 
     guidance, the Secretary determines that the factors taken 
     into account in determining the foreign statement reserve 
     provide an appropriate means of measuring income.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2001.

     SEC. 615. REPEAL OF REQUIREMENT FOR APPROVED DIESEL OR 
                   KEROSENE TERMINALS.

       (a) In General.--Subsection (e) of section 4101 is hereby 
     repealed.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on January 1, 2002.

     SEC. 616. REAUTHORIZATION OF TANF SUPPLEMENTAL GRANTS FOR 
                   POPULATION INCREASES FOR FISCAL YEAR 2002.

       Section 403(a)(3) of the Social Security Act (42 U.S.C. 
     603(a)(3)) is amended by adding at the end the following:
       ``(H) Reauthorization of grants for fiscal year 2002.--
     Notwithstanding any other provision of this paragraph--
       ``(i) any State that was a qualifying State under this 
     paragraph for fiscal year 2001 or any prior fiscal year shall 
     be entitled to receive from the Secretary for fiscal year 
     2002 a grant in an amount equal to the amount required to be 
     paid to the State under this paragraph for the most recent 
     fiscal year in which the State was a qualifying State;
       ``(ii) subparagraph (G) shall be applied as if `2002' were 
     substituted for `2001'; and
       ``(iii) out of any money in the Treasury of the United 
     States not otherwise appropriated, there are appropriated for 
     fiscal year 2002 such sums as are necessary for grants under 
     this subparagraph.''.

     SEC. 617. 1-YEAR EXTENSION OF CONTINGENCY FUND UNDER THE TANF 
                   PROGRAM.

       Section 403(b) of the Social Security Act (42 U.S.C. 
     603(b)) is amended--
       (1) in paragraph (2), by striking ``and 2001'' and 
     inserting ``2001, and 2002''; and
       (2) in paragraph (3)(C)(ii), by striking ``2001'' and 
     inserting ``2002''.

  The SPEAKER pro tempore. Pursuant to House Resolution 360, the 
gentleman from California (Mr. Thomas) and the gentleman from New York 
(Mr. Rangel) each will control 30 minutes.
  The Chair recognizes the gentleman from California (Mr. Thomas).
  Mr. THOMAS. Madam Speaker, I yield myself such time as I may consume.
  Madam Speaker, this morning one of the things that we really need to 
establish in this package, that we hope the Senate will take up 
relatively quickly and pass without trying to amend so that we can send 
to the President a package which extends unemployment and which 
produces a modest assistance, as Chairman Greenspan indicated, perhaps 
a little bit of insurance to make sure that the economy moves forward.
  One of the things that needs to be understood from the beginning is 
this is not a stimulus package. When you have an economy that generates 
$10 trillion a year, $41 billion over 10 years in no way can be called 
a stimulus. For example, the underlying bill, H.R. 3090, which the 
Senate amended and sent back to us which the House sent to the Senate 
in October was a stimulus bill. It generated $160 billion worth of 
assistance to individuals and to businesses over a 10-year period. The 
other body killed that bill. The leadership over there decided that 
they did not want a stimulus.
  I will admit it took us a little while to fully appreciate the fact 
that they did not want a stimulus package to help the economy recover. 
We sent them three adjusted bills. We did not send the same thing each 
time. We examined the package. We made adjustments. We searched 
forever, as a governing majority is supposed to do, for something that 
would reach agreement; and today we have in front of us what we believe 
certainly should and hopefully will reach agreement.
  Just several weeks ago, my colleagues on the other side of the aisle 
were imploring us to just pass what the Senate sent us. To remind 
Members of what it was the Senate sent us, it was naked, the most 
minimal unemployment package, irreducibly minimum, and that is what the 
Senate could do. And we were urged by our colleagues on the other side 
of the aisle, why do we not take that up and pass it? That is all we 
can do. That is all we should do, and we should do it now.
  I am pleased to say that we are not just doing that. I think today 
the House will pass a package which certainly cannot in any way be 
called a stimulus but is certainly not the irreducible minimum, almost 
the affront to Americans that was contained in the Senate-passed 
package and which was urged to be adopted by us by our friends on the 
other side of the aisle.
  To give Members an idea of how a number of folks have not been able 
to understand what is going on, I would offer today's Washington Post 
which begins with the headline ``House GOP Relents In Fight Over 
Stimulus.''
  No, we are not relenting. We have conceded that the Senate leadership 
has been able to kill stimulus. They have succeeded. So we are not 
relenting. Ironically, it goes on in the very first paragraph that says 
that the bill, that we have agreed to legislation ``that will focus 
largely on new benefits for unemployed workers.'' Will focus largely on 
benefits for unemployed workers.
  The bill is $41 billion over 10 years. Over that 10-year period, out 
of the $41 billion, $2.7 billion is for unemployed. The $38 billion 
remainder is for reduction of taxes to small business, medium business, 
job-creating provisions. And only the Washington Post could say that 7 
percent of something is largely focused on. That shows you how far off 
the Washington Post is.
  It then goes on and says that the bill closely tracks a Senate 
proposal to provide unemployment. No, it does not closely track a 
Senate proposal. It is far better than the Senate proposal. The 
proposal we have for unemployment benefits not only provides the 13 
weeks and uses a trigger for those benefits lower than current law, but 
it says if a State continues to match the 4 percent trigger rather than 
the 5 plus trigger in the current law, the 4 percent is President 
Bush's request to utilize as a trigger, and we thought that was 
appropriate. But if you run out of your initial 13 weeks and your State 
still has greater than 4 percent unemployment, there is an automatic 
trigger of an additional 13 weeks; and if you run out of those 13 weeks 
and your State finds itself above the 4 percent unemployment rate, 
there is an automatic trigger, et cetera, et cetera, et cetera.
  What we are trying to do is to make sure that the Senate cannot 
continue

[[Page H758]]

to hold hostage unemployment insurance benefits for those who through 
no fault of their own cannot find employment. We sent the Senate a 
package in October, and here we are in March debating. Our hope is when 
this passes by a large bipartisan vote the Senate will take this up and 
send it to the President, because the House's unemployment proposal 
says, once we do this, it is on automatic trigger. If the conditions 
are there, it will be renewed automatically. The Senate does not do 
that.
  So how in the world somebody could say that this closely tracks the 
Senate is beyond me. Of course, and unless what they want to do is to 
make it look like the Republicans in the House have ``relented.''
  Now, obviously, there is a motive for doing that. But, most 
importantly, the motive should be that we help people in need, that we 
make sure that we create a bridge. We do a modest insurance package for 
growth in this economy so we can recover. I cannot believe that anyone 
carried out the kind of stalling tactics that occurred over on the 
Senate side in the hopes that the economy would stumble or that the 
economy would not recover as rapidly as it otherwise would, and I hope 
no one stands in the way of this modest package or amends it over in 
the Senate to try to make a point from the leadership's side over in 
the Senate that we want our fingerprints all over this or we want to 
delay any longer.
  The time for delay is over. The time for passage is here, today in 
the House, tomorrow at the latest in the Senate, so that we can get 
this measure to the President and let him sign it. It is about time.
  Madam Speaker, I reserve the balance of my time.


                Announcement by the Speaker Pro Tempore

  The SPEAKER pro tempore. The Chair would remind all Members that 
during the course of this debate Members should refrain from 
characterizing Senate action or inaction and should refrain from urging 
Senate action.
  Mr. RANGEL. Madam Speaker, I yield myself such time as I may consume.
  Madam Speaker, let me take advantage of this rare opportunity when I 
agree with the chairman of the Ways and Means Committee. I would like 
to get his attention for a moment so that I give him his usual 
opportunity to respond. I am so desperately trying so hard to get the 
gentleman from California's (Mr. Thomas) attention. It is so difficult.
  I just wanted the gentleman to know that I agree with him that the 
Washington Post is in serious error in suggesting that the Republicans 
in the House of Representatives have relented.

                              {time}  1115

  The Republicans do not know how to relent. The hostages of those 8 
million people who are unemployed and without health benefits have not 
been freed completely by the Republican leadership. As the gentleman 
pointed out, he could not resist putting tax benefits that in the first 
3 years cost some $100 billion, or as the gentleman pointed out, a 
projected $43 billion.
  The glee that the gentleman takes in suggesting that we are only 
providing $2.7 billion for the unemployed as opposed to the incentives 
that we are paying for the corporate structure. No, he is not 
relenting; he is responding to the outrage that has been felt by people 
throughout this country that since 9-11 the gentleman has ignored the 
people who are unemployed. The gentleman has taken their pain, their 
misery, their loss of homes and jobs and dreams and tuition, and he has 
put this into what the gentleman calls a stimulus package.
  Now, the stimulus package always included not relieving pain for the 
unemployed but always accelerating tax benefits for the rich, or 
repealing the alternative minimum tax or something that had nothing to 
do with those victims that were unemployed. So when my colleague 
suggests that it is the other body that has loaded up the bill, what, 
are we in Alice in Wonderland? Did we not just get a bill from them 
passed by Republicans and Senators saying to just do employment 
compensation? My colleague could not resist jumping on that with all of 
the things that make the Republican Campaign Committee happy.
  So I agree with the gentleman from California (Mr. Thomas), this is 
not a stimulus package, nor should the unemployed be held hostage by 
so-called stimulus tax cuts. The ratio of tax benefits to the 
corporation and easing a little pain to the unemployed, my God, would 
let us know there is not too much compassion here. Will we grab this 
and run with it, even though it is not paid for? Well, it is paid for 
out of the monies coming in from the Social Security Trust Fund, but we 
do not have that many options, considering the box that the leadership 
has placed us in as relates to the spend-down of the surplus.
  So, let the record reflect that I agree with most all that the 
gentleman has said. This is not a stimulus package. The GOP, as my 
colleague likes it to be called, does not know how to relent. There is 
an area of some tiny relief here for the unemployed. The gentleman had 
to resist giving some decent health benefits to this, and the fact that 
it is not paid for, so what else is new?
  Madam Speaker, I ask unanimous consent to allow the gentleman from 
California (Mr. Matsui) to manage the remainder of my time.
  The SPEAKER pro tempore (Mrs. Emerson). Is there objection to the 
request of the gentleman from New York?
  There was no objection.
  Mr. THOMAS. Madam Speaker, I yield myself such time as I may consume. 
And if my colleague from New York would not rapidly leave the Chamber, 
what I would have responded to him was that perhaps he forgets back in 
September, on the trade adjustment assistance package, the House placed 
more than $2 billion available for those individuals who lost their 
jobs in relation to the tragic events of September 11. Notwithstanding 
the fact it was on trade adjustment, we said that would be handled in 
the same fashion.
  When the gentleman talks about relieving the pain of the unemployed, 
he focuses on unemployment payments, as though being more generous on 
unemployment payments is how he relieves the pain of the unemployed. 
What the President so eloquently said in his State of the Union was 
that what this is all about is jobs. And the last time I checked, if we 
want to be an employee, we need to have an employer.
  What he calls benefits to the rich and the corporations, anybody 
else, who understands how this economy works, would say we are trying 
to create jobs. And when he says we do not have compassion for the 
unemployed, this sounds like a repeat of the welfare debate when they 
considered compassion holding people hostage to government payments. 
That is compassion? We believe compassion is making sure the economy 
grows so that people can have a job and have the dignity and respect of 
having a job, instead of making sure that we tie them to unemployment 
payments so we can show how compassionate we are in relieving the pain 
of unemployment by giving them a government check.
  I think that pretty well draws the line between the President and our 
approach to trying to deal with these issues and our friends on the 
other side of the aisle. They define compassion as a government check, 
they define taking care of the pain of the unemployed by giving them 
more government money, and we define it as growing the economy, 
creating jobs and letting people have the dignity of work. That is real 
compassion for those who, through no fault of their own, have no job at 
the present time.
  Madam Speaker, I reserve the balance of my time.
  Mr. MATSUI. Madam Speaker, I yield myself such time as I may consume 
to just point out to the Members that the gentleman from New York (Mr. 
Rangel) is leaving not as a sign of discourtesy to the Chair, but he 
has been summoned to the White House to talk about some of the New York 
issues. He is meeting with the President. In fact, he is a little late 
at this moment. So he does wish that people understand that he is 
leaving for the purpose of meeting with the President.
  Madam Speaker, I yield 2 minutes to the distinguished gentlewoman 
from the State of Connecticut (Ms. DeLauro).
  Ms. DeLAURO. Madam Speaker, at last, 6 months after the September 11

[[Page H759]]

attacks, with a damaged and already troubled economy, the House is 
poised to extend unemployment benefits for workers in this great Nation 
who have lost their jobs through no fault of their own. At last.
  For 6 months, Democrats have stood firm on a plan that was one part 
good economics and one part basic human decency. The Republican 
leadership balked. They have equivocated, squirmed; and they have 
shifted in their seats at the mere mention of passing a bill that 
extended unemployment benefits and health care benefits for workers of 
this country, something that this Nation has done historically in 
difficult times in our country.
  And they were opposed to doing this if the bill did not include 
corporate tax handouts for the largest corporations, for the Enrons of 
the world. Since that time, over a million and a half people have seen 
their unemployment benefits expire. In fact, just yesterday the House 
was ready to consider a fourth sham bill that again had no chance of 
making it to the President's desk. And since that time, another 11,000 
Americans have lost their benefits.
  Well, my friends, time ran out on the Republican House leadership. 
And just as we witnessed their misguided approach to airline security 
last November, their stubborn effort to defy the will of the American 
people has again ended in defeat; a defeat for the Republicans, but, 
albeit belatedly, a victory for American workers.
  Now, what we need to do is to undertake the effort to make sure that 
those who have suffered unemployment and who have lost their health 
benefits that what we will do is to work to make sure that we assist 
them and our States to provide them with the opportunity to include 
people who have lost their jobs and their health benefits to get those 
benefits. It is about time.
  Mr. THOMAS. Madam Speaker, it is my pleasure to yield 1 minute to the 
gentleman from New York (Mr. Houghton), a valued member of the 
Committee on Ways and Means.
  Mr. HOUGHTON. Madam Speaker, first of all, I would like to thank the 
gentleman from California (Mr. Thomas) for all the work he has done, 
and I thank the gentleman from California (Mr. Matsui); but the 
chairman of the committee has been extraordinary in hanging with this 
program and trying to get something we could vote on.
  Look, there are lots of different things, and I will not go through 
the litany in terms of unemployment provisions and in terms of helping 
small businesses, because the thing I would like to do is just say 
thank the gentleman to the gentleman on behalf of New York, on behalf 
of the liberty zone, on behalf of all those people who need your help. 
And that is the only thing I have to say today.
  Mr. MATSUI. Madam Speaker, I yield 2 minutes to the distinguished 
gentlewoman from Ohio (Mrs. Jones).
  Mrs. JONES of Ohio. Madam Speaker, today, we finally have an 
opportunity to do something for the worker. I can remember back in 
September talking about the airline security bill and talking about the 
fact that many of my family members are employed in the airline 
industry, my father having carried bags for United Airlines for some 38 
years. And every time I go through that airport, I see these men who 
have been carrying bags for years making $2 an hour, and unable to get 
tips to supplement their families and help their families. But the 
discussion kept going on: we are going to help the workers, we are 
going to help the workers, we are going to help the workers. Well, 
finally, we are doing that.
  And unlike some who say that we as Democrats see compassion as an 
unemployment check, I do not see compassion as an unemployment check. I 
see compassion that we ought to exhibit all during this year and years 
to come as Members of the House: compassion for affordable housing for 
people who cannot afford housing, compassion for people who need health 
care, who cannot afford a health care credit. Because if I do not have 
any money, I cannot pay for health care and then get a credit. I see 
compassion as giving opportunities for people to have a job at a living 
wage and have a job where they can work and get a health care benefit 
that they do not then have to pay for.
  I understand compassion. I see compassion. And I am not going to give 
support of business to the Republican Party, because Democrats support 
business. I serve on the Committee on Small Business, and I am here to 
help business. But we cannot help business and not help the workers who 
help to build the business. I am glad for workers. Thank God we have 
got unemployment compensation.
  Mr. THOMAS. Madam Speaker, I yield myself such time as I may consume.
  Ms. DUNN. Madam. Speaker, will the gentleman yield for a colloquy?
  Mr. THOMAS. I yield to the gentlewoman from Washington.
  Ms. DUNN. Madam Speaker, I appreciate this legislation. It is going 
to do great things for the State of Washington, which is the second 
highest in unemployment in the Nation right now.
  Mr. Chairman, I want to clarify a couple of points, that dislocated 
workers in Washington State will receive the following benefits in this 
order:
  First, the regular State benefits of up to 30 weeks; second, the 
regular 50-50 shared Federal and State extended benefits up to 13 
weeks, that the Governor can elect to suspend; third, the 13-week 
extended benefits, fully paid for by the Federal Government; and, 
fourth, States with high unemployment rates, like Washington State at 
7.5 percent, would be eligible for an additional 13 weeks, fully paid 
by the Federal Government; and lastly, fifth, once all these resources 
are exhausted, displaced workers in Washington State will be eligible 
to use state-funded benefits already available under State law. Is that 
the gentleman's understanding?
  Mr. THOMAS. Madam Speaker, reclaiming my time, I tell the gentlewoman 
that that is my understanding. That is the way we intended to write the 
legislation, and in conferring with the Department of Labor, they have 
indicated to us that that is the appropriate interpretation. However, 
we will insist on a letter from the Department of Labor assuring us 
that that is in fact the way they will interpret the legislation.
  Ms. DUNN. Madam Speaker, I thank the gentleman.
  Mr. DICKS. Madam. Speaker, will the gentleman yield?
  Mr. THOMAS. I yield to the gentleman from Washington.
  Mr. DICKS. Madam Speaker, I want to compliment the chairman and my 
colleague, the gentlewoman from Washington (Ms. Dunn), for their effort 
here. This is a very important problem. The chairman was gracious in 
working with us on the Trade Adjustment Assistance Act, and I want to 
thank him for this effort here to clarify the law.
  Mr. THOMAS. Once again reclaiming my time, Madam Speaker, I tell the 
gentleman that our intent is to maximize the opportunities for those 
who are unfortunately unemployed, not to create conflict; and we 
believe we have done that.

                              {time}  1130

  Mr. MATSUI. Madam Speaker, I yield 2 minutes to the gentleman from 
Indiana (Mr. Roemer).
  (Mr. ROEMER asked and was given permission to revise and extend his 
remarks.)
  Mr. ROEMER. Madam Speaker, if we were playing a baseball game, it 
would be three strikes and then out. This is not the third but the 
fourth time that we have tried to do this bill in the right and the 
balanced and the appropriate and the bipartisan way.
  We finally have it right, and so we are playing by the House rules 
that we can do it three or four or five times. We finally have balance 
in this bill: Balance between helping our businesses in a tough time, 
in a recession, maybe coming out of this recession slowly, and helping 
them with a 30 percent first year depreciation bonus. Importantly, we 
have help for our families, our unemployed, our children, people across 
Indiana that have seen unemployment rates almost double over the past 
year.
  Madam Speaker, we have seen nationally the unemployment rate go to 
7.9 million people, almost 2 million people more than a year ago. This 
is important because the cost of this bill has come down, too. We are 
coming out of the recession. Mr. Greenspan is saying good things about 
recovery, and the price of this has gone down from $127 billion to $99 
billion, to now $41 billion over 10 years. That is good for our budget. 
It is good for our families.

[[Page H760]]

 It is good for our businesses. We have arrived at the right balance.
  Madam Speaker, I intend to vote for this bill. It will be a 
bipartisan bill, and I am glad we finally have it right.
  Mr. THOMAS. Madam Speaker, I yield 2 minutes to the gentleman from 
Arizona (Mr. Hayworth), a valued member of the Committee on Ways and 
Means; and, lest we forget, somebody who represents the world champions 
in baseball, which was a point made by the previous speaker.
  Mr. HAYWORTH. Madam Speaker, I listened with great interest to the 
gentleman from Indiana who started with the point of gamesmanship. He 
spoke about three strikes and being out. A more complete exposition on 
the rules on baseball, four balls and one walks.
  Sadly, there are some in this town who just walked away. One 
definition of balance, to deprive the creation of job opportunity to 
strike balance for unemployment checks, that type of false compassion.
  Let me suggest, Madam Speaker, this is not a game. Those who will 
come to this well and cry crocodile tears as to their compassion for 
the unemployed are missing the boat.
  Our President made the point, true compassion is not an unemployment 
check, it is a paycheck from a job. When we turn our back on tax policy 
that creates economic opportunities and jobs, in the unrealistic and 
almost plaintive cry that somehow these are tax breaks for the rich, 
they fail to understand.
  Madam Speaker, there are many in Arizona and across America who grow 
cynical with the shenanigans in Washington and grow cynical with those 
who would put political career advancement in front of the needs of the 
very people they purport to champion. Indeed, there are those in the 
dominant media culture who almost cheerlead for that somewhat cockeyed 
view of how to help people.
  Good people can disagree, but once again we have taken a step today, 
more modest, to help those who need help, people we could have helped 
in October, in December, once again in December, and in February. At 
long last, we will rally. How sad it is that we do not get balance for 
economic opportunity at all, but we do take the steps necessary.
  Mr. MATSUI. Madam Speaker, I yield 2 minutes to the gentlewoman from 
California (Ms. Millender-McDonald).
  Ms. MILLENDER-McDONALD. Madam Speaker, I thank the gentleman from 
California (Mr. Matsui) and also the chairman for bringing this bill to 
the floor, as well as the ranking member.
  Madam Speaker, today we are considering amendments to H.R. 3090, the 
Job Creation and Worker Assistance Act. As a ranking member of the 
Subcommittee on Workforce, Empowerment and Government Programs, I 
embrace this bill. However, I would have wanted to see more for small 
businesses and more tax credits than what we have, especially for the 
unemployed. I would like to have seen a more equitable bill, but this 
bill that is under consideration is a drastic improvement over the 
first bill that was introduced into the House.
  The major improvement to the bill is an extension of unemployment 
benefits for 13 weeks. I am sure unemployed workers throughout America 
will be comforted by this good news. Further, the bill reauthorizes 
TANF, the supplemental grant program and contingency fund, throughout 
the end of 2002. For families that have endured tough economic times, 
this reauthorization should provide some measure of relief.
  I am also pleased to note that my colleagues in the House demonstrate 
a compassion for the long-suffering victims affected by the events of 
September 11 by including measures that provide temporary tax breaks 
and incentives for reconstruction of the World Trade Center 
neighborhood of New York City.
  Madam Speaker, this is a bill that we can support. It does not have 
all of the benefits that I would have wanted to see, but as the ranking 
member of the Subcommittee on Workforce, Empowerment, and Government 
Programs, I welcome this bill. After months of wrangling over the 
economic stimulus bill, we have a bill that speaks to both business and 
unemployed workers.
  Mr. THOMAS. Madam Speaker, I yield 3 minutes to the gentleman from 
Illinois (Mr. Weller).
  (Mr. WELLER asked and was given permission to revise and extend his 
remarks.)
  Mr. WELLER. Madam Speaker, let me first begin by complimenting the 
gentleman from California (Mr. Thomas) for his perseverance in working 
to get this economy going again. Today, the fourth time, will be the 
charm. I hope that the bipartisan support we are hearing for this 
legislation to help unemployed workers, as well increase investment and 
the creation of jobs, will go through the Senate and be signed into 
law.
  There is an interesting headline in the paper today, ``Congressional 
Budget Office Predicts 2 Years of Surpluses, Credits Tax Rebate for 
Rebound in Budget.'' The nonpartisan Congressional Budget Office gives 
credit to the President's tax cut for the improved situation with our 
budget, as well as the rebound we are beginning to see in this economy.
  This legislation before us is important today. We have laid-off 
workers. They are running out of unemployment benefits. We extend them. 
The program that we have before us is better than what the other body 
has suggested.
  We also answer a very important question, and that is, what drove job 
creation in the last decade? It was investment, investment in the 
creation of jobs. For example, particularly in the technology and 
telecommunications sector, a tremendous amount of investment in the 
1990s drove the creation of two-thirds of the jobs, the new jobs in our 
economy. That area has been hard hit by the recession we are currently 
under.
  Madam Speaker, there are two provisions in this legislation that are 
tremendous incentives for investment and the creation of jobs: the 
accelerated depreciation, a 30 percent expensing, what some call the 
bonus depreciation. It is a tremendous incentive in the creation of 
jobs. Some of us have auto manufacturers or pickup truck manufacturers. 
Others have those that produce computers or telecommunications 
equipment. When someone has an incentive to buy those type of assets, 
there is a worker who manufactures that product, installs that product, 
services that product, and there is a worker who operates that product. 
The 30 percent expensing is a tremendous incentive for investment in 
creation of jobs.
  NOL carry-back will allow companies to go back 5 years if they are 
losing money. The NOL carry-back is a tremendous incentive to invest in 
jobs. Companies are losing money. They need an opportunity to create 
capital that they can invest and keep their companies moving forward. 
The NOL carry-back will allow them to go back 5 years, essentially get 
a tax refund, use that money to invest in job creation, putting workers 
and their companies back to work, and giving more workers the 
opportunity to go back to work.
  Madam Speaker, this legislation deserves bipartisan support. Let us 
invest in new jobs and give those who are unemployed today the 
opportunity to go back to work.
  Mr. MATSUI. Madam Speaker, I yield 2 minutes to the gentleman from 
Maryland (Mr. Cardin).
  Mr. CARDIN. Madam Speaker, I thank the gentleman for yielding me this 
time and thank the gentleman for his work on many of the issues that we 
are considering today.
  Madam Speaker, I want to talk about three issues in this bill that 
are very important. One deals with unemployment insurance, and the 
others deal with our welfare system.
  I am pleased we now have these three provisions in a package that has 
a good chance of not only passing this body but the other body and 
being signed by the President of the United States. I congratulate the 
gentleman from California (Mr. Thomas), the gentleman from California 
(Mr. Matsui), and the gentleman from New York (Mr. Rangel) for bringing 
forward a package that can be signed into law.
  The provision I am referring to is the 13-week extension of 
unemployment insurance. We have been in recession for the last year. 
People, through no fault of their own, cannot find employment. It is 
important that we extend the unemployment insurance benefits. This 13

[[Page H761]]

 weeks will help 80,000 people a week who are exhausting their current 
unemployment insurance benefits.
  The other two provisions deal with our welfare system. We extend the 
supplemental grants to those States who depend upon the supplemental 
grants in order to fund their welfare programs. Maryland is not one of 
those States, so the people in my State do not benefit, but it is an 
important program, and I applaud the effort that will finally get that 
enacted into law.
  The other provides for the contingency fund within the TANF welfare 
program.
  Madam Speaker, we are in a recession. We are going to be calling upon 
our social safety net programs more in the coming year. It is important 
that we provide within the TANF program the extra resources that our 
States are going to need in order to deal with the people that cannot 
find employment during this very difficult time.
  Madam Speaker, for those three reasons I compliment all that are 
involved. These are three important provisions and are worthy of the 
support of this Chamber, and I thank all who are responsible for making 
it possible.
  Mr. THOMAS. Madam Speaker, I yield 1 minute to the gentleman from 
Pennsylvania (Mr. Gekas).
  Mr. GEKAS. Madam Speaker, the inclusion of the extension of 
unemployment compensation benefits in this bill, of course, is the 
core, and it is a pretty good outcome for our unemployed.
  I would have added one feature to it which I presented to the 
Committee on Rules but learned that it was premature to do so but which 
would have lifted an additional burden from the backs of our 
unemployed, namely a proposition that I have offered to eliminate 
income taxes on the receipt of unemployment compensation benefits. My 
proposition would make it retroactive to January, 2001.
  Just as the unemployed began to creep up in numbers after the 
recession started, and exacerbated by September 11 when a whole new 
crew of unemployed Americans came before the unemployment boards, now 
is the time to consider lifting the burden of income taxes that applies 
to those benefits.
  The chairman of the Committee on Ways and Means assured me that we 
would have discussion on this proposition; and when the time comes for 
that discussion, I ask the support of all of the Members because it is 
an unfair proposition to have our unemployed receive an unemployment 
compensation check and then have to calculate it in their taxes. We 
want to see that eliminated.
  Mr. MATSUI. Madam Speaker, I yield 1 minute to the gentleman from 
Texas (Mr. Green).
  Mr. GREEN of Texas. Madam Speaker, I rise in support of the bill. 
This is the first time I have been able to say that on the floor, and 
maybe the fourth time is the charm. The need is urgent to help our 
displaced workers and encourage investment through depreciation.

                              {time}  1145

  This bill extends unemployment insurance benefits for workers who 
have used their benefits up without yet finding a job. In my own area 
in Houston, our laid-off workers are a result of September 11, the 
airline employees and the travel industry, and from the Enron 
situation. They will benefit from this. Since September 21, about 2 
million families have run out of unemployment benefits, 81,000 per 
week.
  That will help us nationwide. We should have done this months ago in 
a bipartisan manner, but the Republican leadership insisted three times 
before that the tax breaks for the wealthy and corporations be 
included. In previous recessions, we have always passed an unemployment 
extension, but this time again we held it hostage, and now I am glad we 
are finally going to see it happen.
  The concern I have, though, is ultimately we went from last year 
saving Social Security first to making it last. It looks like we have 
put tax cuts first. Again I am glad the committee has come up with this 
bill. It is a good compromise. Hopefully, the Senate will adopt it.
  Mr. THOMAS. I thank the gentleman for his kind words.
  Madam Speaker, I yield 1 minute to the gentleman from Texas (Mr. Sam 
Johnson), a valued member of the Committee on Ways and Means.
  Mr. SAM JOHNSON of Texas. Madam Speaker, it has been over 100 days 
since President Bush demanded that Congress pass legislation to create 
jobs and spur our economy. Today, we are trying to help the unemployed 
and we might finally succeed.
  Republicans are asking our Senate over there to put the American 
people first and their political ambitions second. Nothing should stand 
in the way of this bill, because it targets those that need help, the 
unemployed, our businesses and our economy. I know the people of South 
Dakota and Missouri are tired of these political games and so am I. We 
are just trying to make America strong by creating new, high-paying, 
long-term jobs. This bill does just that. Vote for America's workers. 
Vote for this commonsense bill.
  Mr. MATSUI. Madam Speaker, I yield 3 minutes to the distinguished 
gentlewoman from Florida (Mrs. Thurman).
  Mrs. THURMAN. Madam Speaker, I am actually here to support the bill. 
I, like many of my friends, am glad we have a piece of legislation 
before us that does address some of the issues that many of us have 
been concerned about and certainly one that we can find consensus. It 
is good to know that we in fact can find consensus and come to 
agreement on some issues that are facing many, many people in this 
country.
  I would just say that what we are hearing today is there has been 
about 80,000 Americans who are losing their unemployment benefits each 
week. According to one estimate, about 1.6 million people have totally 
exhausted their benefits since the September 11 tragedy. This 13-week 
extension certainly will go a long way to help them and their families 
during this crisis time.
  I would say I am disappointed that we could not up some of the 
Medicaid dollars. I think that would have been a right direction for 
our States. Our States are looking to us for some leadership on this 
issue. They, as we all know, are in serious problems in their States; 
and Medicaid is an area in which they have asked for some relief. In 
saying that, though, I think the chairman knows that in the last couple 
of months, we have talked in the committee about the TANF grants and 
issues. In fact, we are going to be at a Federal-State conference on 
Monday. My State of Florida has continually brought this issue to our 
attention. It is my understanding we are going to get about 10 percent 
of our total. I do not know what exact number that is, but certainly it 
is going to go a long way in helping us.
  I think there are also some important issues in here on the 
extenders. Our business partners that come in to talk to us constantly 
are saying to us, the extenders are something we have to go through 
every time. We are very concerned that this is not going to happen.
  I would just say that I think that the extenders and one that I am 
very much interested in certainly was the wind which is also an 
alternative energy issue, one that we should be paying close attention 
to in these times.
  All in all, I also think that we met some of the criteria that Mr. 
Greenspan and others have said that will also help us in stimulating 
this economy. I thank our chairman and our ranking member and members 
of this committee who got together and figured out that there was a way 
to go and get some things done around here that helps the American 
people. We thank them for that.
  Mr. MATSUI. Madam Speaker, I yield 2 minutes to the gentleman from 
New Jersey (Mr. Pallone).
  Mr. PALLONE. Madam Speaker, let me first start out by saying that I 
am very pleased that the Republican leadership dropped the bill 
yesterday which would have complicated matters and brought up what is 
essentially a clean bill today on the unemployment compensation so we 
can get this passed and give that extra 13 weeks to our constituents. 
That is so important. I am pleased at the fact that they were willing 
to listen to Democrats and others that were asking that that be done.
  However, I did want to say that the issue of health care for people 
who are displaced, for displaced workers, is still very important and 
needs to be addressed. One of the concerns I have,

[[Page H762]]

which some of my colleagues have mentioned, which is that with the 
States piggybacking on this Federal depreciation rule, many of the 
States are now concerned that they are going to be losing significant 
amounts of money and that they will not be able to afford to keep 
everyone on their Medicaid rolls. In my home State of New Jersey, which 
faces like a 12 percent deficit from the previous Republican 
administration, our Governor is saying a big part of that is Medicaid. 
So we do not want to aggravate the situation, making it more difficult 
for States to provide health care for people who do not have a job or 
who are low income.
  What I would like to see, and this is what I would ask, is that the 
Republican leadership allow at some point in the next few weeks the 
opportunity for the Democrats and all of us to address the problem of 
health care. Democrats have talked about expanding COBRA. Democrats 
have talked about giving more money to States to deal with this 
Medicaid problem. We have to recognize the fact that given the 
recession and the amount of displaced workers, there are a lot more 
uninsured and their problems are only going to be addressed if we deal 
with public programs and try to help the States with Medicaid, if we 
deal with COBRA, if we deal with some of these health care initiatives 
that actually make a difference and provide people with health 
insurance.
  The tax credits that the Republicans have been talking about are not 
going to help the uninsured. Very few people are going to be able to 
buy into the individual market; and if anything, the Republican 
proposals with their tax credits undermine the employer-based system. 
That is why we brought it up on the previous question today that we 
voted ``no,'' because we do not want to undermine the employer-based 
system with these tax credits that the Republican leadership has 
proposed.
  Mr. THOMAS. Madam Speaker, it is my pleasure to yield 2\1/2\ minutes 
to the gentleman from Ohio (Mr. Portman), a member of the Committee on 
Ways and Means.
  Mr. PORTMAN. Madam Speaker, I tell my friend who just spoke on the 
other side of the aisle that we had an opportunity to help States in 
regard to health care in the previous three bills that came to this 
floor for economic stimulus. I do not know whether the gentleman was on 
those, whether he voted for them or not; but we have had that 
opportunity, and we will have it in the future because this House will 
act to deal with the issue of the uninsured.
  I thought it would be helpful to talk for a second about how we got 
to where we are right now. Let us start with why we are here. We are 
here because of the recession, and we are here because of the horrible 
events of September 11 and the deepening of the recession that that 
caused. In reaction to that, the House back in October, 5 months ago, 
passed legislation on this floor, then again passed it in December, 
then again passed it in February, each time focusing on two things: 
one, helping those who are unemployed, including the extension of 
unemployment insurance; and, second, helping to get the economy back on 
track so we can get people back to work. That has been the focus of all 
the three previous efforts. Each time as the House has passed these 
bills with practically unanimous Republican support and some support 
from the other side of the aisle, these bills have been blocked by the 
other body. Despite the fact that we believe there is a majority of the 
other body that supports the legislation, at least the legislation in 
December and the legislation in February, the other body has chosen to 
block that legislation, despite the fact that during this time the 
recession has dragged on and on and on.
  That is why we are here today, because as the other body has blocked 
each of these good-faith efforts again to get people back to work, the 
House has reacted by altering the legislation, trying to address the 
very concerns that were raised on the floor of the other body and some 
concerns that were raised on the other side of the aisle here so that 
the bill which was brought forward in December, the bill which was 
brought forward in February, was altered from the original legislation 
to try to be sure we could get through that Senate gauntlet, excuse me, 
the other body's gauntlet and get the bill to the President for 
signature because we care about helping people who are unemployed but 
also care deeply about getting people back to work and re-creating 
those jobs in the American economy.
  The House stayed focused on that every time. The House stayed focused 
on helping people. Now we are here. The other body finally blocked 
legislation indicating to us that now we need to alter the bill again. 
We have once again done so. This time we have fewer incentives for 
jobs, but still have incentives for jobs. We kept at it. Again, I must 
say that I applaud the chairman's personal perseverance and patience in 
this effort. I think, frankly, politically many people argued we should 
have done something else, we should have blamed the Senate or the other 
body for blocking this legislation. Instead, we have persevered. We 
have done what we can to try to get this bill done.
  Again today we are hearing on the other side of the aisle more 
support for this legislation. I certainly hope the other body is 
listening, because it is time. It is 5 months too late; but it is time 
for us to move to help those who are unemployed, to extend unemployment 
insurance, to provide other assistance but also to help get people back 
to work, to put in place some incentives so that new jobs can be 
created and folks can get back to work helping the U.S. economy.


                Announcement by the Speaker Pro Tempore

  The SPEAKER pro tempore (Mrs. Emerson). The Chair would once again 
remind all Members that during the course of this debate, Members 
should refrain from characterizing Senate action, including urging 
Senate action.


                         parliamentary inquiry

  Mr. THOMAS. Madam Speaker, I have a parliamentary inquiry.
  The SPEAKER pro tempore. The gentleman will state it.
  Mr. THOMAS. In terms of not representing or characterizing Senate 
action, does that also refer to characterizing Senate inaction?
  The SPEAKER pro tempore. The gentleman is correct.
  Mr. MATSUI. Madam Speaker, I yield 2 minutes to the distinguished 
gentleman from California (Mr. Dooley).
  Mr. DOOLEY of California. Madam Speaker, I am very pleased today that 
we finally have put together a stimulus package that will enjoy 
significant bipartisan support, and it will engender this significant 
bipartisan support because it is focused. It is focused on enacting tax 
cuts that will really result in increased economic activity. It focuses 
on providing needed benefits to New York. It focuses on providing 
needed benefits to our unemployed workers. And unlike some of the past 
stimulus bills that were brought before this House, it is focused on 
tax cuts that will really make a difference in the immediate term.
  There has been some characterization that we did not have a stimulus 
bill signed into law before this or through the past 5 months because 
of a failure of one body or the other to take action. I think the 
reason we do not have a bill that is signed into law already was 
because we failed to work in a bipartisan fashion to structure a bill 
that would be focused on the immediate tax cuts that would provide that 
economic stimulus that was balanced to the appropriate benefits that 
needed to be provided to the unemployed workers in this country. I do 
not think we should be surprised that today when we pass this measure 
out of the House with broad bipartisan support that it is quite likely 
that we will see a bill that will be enacted and sent to the 
President's desk. There is a very simple lesson there, I think, that by 
working together and by being focused and finding a bill that can find 
that common ground, we can make a difference, we can advance policies 
that will ensure that we can see greater economic activity, and we can 
advance benefits that are going to provide some relief to a lot of the 
hard-working Americans who, unfortunately, have lost their jobs over 
the past few months.
  Mr. THOMAS. Madam Speaker, it is my pleasure to yield 2\1/2\ minutes 
to the gentleman from Louisiana (Mr. McCrery), chairman of the 
Subcommittee on Select Revenue Measures of the Committee on Ways and 
Means.

[[Page H763]]

  Mr. McCRERY. Madam Speaker, I first want to talk about why 
Republicans have stuck to our guns on insisting that extension of 
unemployment benefits be coupled with tax cuts for business so that 
they might create jobs and pull us out of this recession.
  I am going to quote from an online publication of Business Week 
magazine from yesterday:
  ``Federal Reserve Chairman Alan Greenspan has repeatedly pointed out 
that the current recession was triggered by business cutbacks and said 
he'll need to see improved corporate demand before he's convinced the 
recovery is sustainable.
  ``Surveys of corporate buyers have consistently shown they plan only 
a gradual pickup in spending this year. Only 15 percent of respondents 
to a National Association of Manufacturers survey released on February 
20 said they would increase capital spending by more than 5 percent in 
the first half of 2002.

                              {time}  1200

  ``For the second half of 2002, only 25 percent of respondents said 
they expect to increase spending by more than 5 percent, but 54 percent 
said their increase would be in the zero- to 5-percent range.''
  There is certainly a need, if we want to get out of this recession, 
if we want to create jobs and put people back to work, there is a need 
to give corporate America an incentive to invest; capital investment. 
That is what Chairman Greenspan is talking about.
  Therefore, we have stuck to our guns and we have won today. We have a 
package that is going to pass this floor and go to the other body and, 
hopefully, will be passed there, that will not only give some relief to 
the unemployed in the form of benefit checks, but it will also give 
them some hope in the form of a future job.
  Now, let us talk about the unemployment compensation benefits in this 
bill, because they are important. The gentleman from Maryland touched 
on them, but he did not go far enough in describing what is in this 
bill. Besides the extension of the 13 weeks of unemployment benefits, 
we also do what is known as a Reed Act distribution. That means that we 
are finally going to give to the States adequate monies for 
administration of the unemployment compensation system in the States, 
primarily the employment services portion of that system. That is what 
Congress has been shortchanging the States on for years now.
  In this bill, we are going to make good on our promise to give them 
adequate funds to administer this program to get people back to work.
  Mr. MATSUI. Madam Speaker, I yield 1 minute to the gentleman from 
Virginia (Mr. Moran).
  Mr. MORAN of Virginia. Madam Speaker, when we have bills that are the 
result of real compromise before us, it is incumbent upon us to find 
real consensus. The fact is that this is a balanced bill, and extending 
unemployment benefits for another 3 months makes sense. We all agree on 
that.
  I also agree on the tax incentives. The capital equipment that is 
going to be purchased as a result of the 30 percent accelerated 
depreciation probably would have happened anyway, but it is going to 
happen now, it is going to be concentrated, it is going to give a real 
jump-start to the economy, and it is going to get those folks on 
unemployment now back into the workforce. Even the 5-year loss carry-
back makes sense.
  This is the kind of thing where the money that we are providing is 
going to be invested immediately for the productivity of our workforce 
with the capital investment, and it is going to be invested in the kind 
of plant and equipment that will ensure that these companies will be 
sustainable.
  We have a great thing going for us. We have had a mini recession. 
There are certain things that we need to do to fill gaps, to build 
capacity in the economy, and we need to make sure that our working 
families can provide for their children.
  This does it. It should be approved, and it should be approved 
unanimously.
  Mr. THOMAS. Madam Speaker, I thank the gentleman for his kind words.
  Madam Speaker, I yield 1 minute to the gentlewoman from Washington 
(Ms. Dunn), a member of the Committee on Ways and Means.
  Ms. DUNN. Madam Speaker, I am pleased to hear preliminary reports 
that indicate that our economy might be back on track, but in 
Washington State, recovery will take longer. Our unemployment continues 
to go up, not down, for each round of Boeing layoffs. At 7.5 percent, 
it is the second highest in the Nation. Many analysts have projected it 
will grow to 8 percent, the highest unemployment in the Nation. So we 
can see why providing the benefits that we provide for unemployed 
people in this bill is crucial, but it is not enough, Madam Speaker.
  It is also crucial to provide some help for businesses so that they 
will invest in workers and keep people employed. We know it is the 
private sector that creates jobs. Assisting them needs to be a focus of 
our recovery efforts. The tax provisions in this bill will encourage 
Washington State companies to begin investing again and keep people 
employed.
  I urge passage of this bill.
  Mr. MATSUI. Madam Speaker, I yield 1 minute to the distinguished 
gentleman from New Jersey (Mr. Andrews).
  (Mr. ANDREWS asked and was given permission to revise and extend his 
remarks.)
  Mr. ANDREWS. Madam Speaker, I rise in support of this bill because of 
what it does and what it does not do. I commend and thank the 
leadership of both parties for bringing us a bill that extends 
unemployment benefits, that provides meaningful incentives for people 
to invest in capital goods and get the business economy rolling again.
  I also support the bill because it is not nearly as large as the 
other plans that were before us just a few weeks and months ago. The 
looming problem in this economy is the budget deficit. This bill adds 
only marginally to the budget deficit in the short run, and I believe 
it will subtract from it in the long run. But that problem is not going 
away. We are once again going to run this government on borrowed money, 
I believe because of the unduly large tax cut enacted last summer.
  We have done a good job today in addressing the short-term problem, 
but we have a bigger job to do in the weeks and months ahead in 
addressing the looming train wreck with Social Security in the American 
economy because we are once again going to go back to the bad old days 
of the 1980s of running this government on borrowed money.
  Let us stimulate this economy today, but let us solve the long-term 
problems in the future.
  Mr. THOMAS. Mr. Speaker, it is my pleasure to yield 2 minutes to the 
gentleman from Pennsylvania (Mr. English), a member of the Committee on 
Ways and Means.
  Mr. ENGLISH of Pennsylvania. Mr. Speaker, I thank the chairman for 
yielding me this time.
  I am here to express support for a bill that House Republicans are 
once again putting forward before the House in response to the pleas of 
American workers who have been laid off in the Arctic climate of this 
recession.
  Mr. Speaker, it is critical that we pass this legislation, but, 
unfortunately, we have been missing many opportunities. Three times 
already we have passed the substance of this legislation with 
additional stimulus built in, passed it, and sent it to where it has 
been blocked by partisan obstructionism which I have neither the time, 
nor the inclination, nor the flexibility, under the rules of this 
House, to adequately explore.
  What is important here is that we are laying forward a bill that 
helps American workers by extending unemployment benefits for 13 weeks. 
At a time when workers are having difficulty finding another job, they 
need that extension. It provides clear tax incentives for investment in 
good-paying jobs.
  I represent a manufacturing district. This is precisely the sort of 
incentive that will allow manufacturers to pour money into capital 
equipment, modernize their production lines, improve productivity, and 
successfully compete globally. This is precisely the kind of incentive 
that is going to allow them to become more competitive and also boost 
the economy now at a critical time when it needs a boost.
  The legislation that we face is the right mix in order to try to 
provide some relief for an economy that is still dragging and still 
very much at risk.

[[Page H764]]

  Mr. Speaker, it is critical that we pass this legislation now. If we 
cannot get the full-blown stimulus package that House Republicans have 
been advocating and that the President has been advocating, it is 
critical that we move this legislation forward to try to address at 
least some of the more obvious problems that we are facing.
  Mr. MATSUI. Mr. Speaker, I yield 3\1/2\ minutes to the distinguished 
gentleman from the State of Washington (Mr. McDermott), a member of the 
Committee on Ways and Means.
  Mr. McDERMOTT. Mr. Speaker, I am really pleased that we finally got 
the hunting season settled for mourning doves yesterday so that we 
could finally get down and do something important.
  Since September 12 when we tried to give $15 billion to the airline 
executives and stockholders, we have refused to deal directly and 
simply with the unemployment question. We have always had to have it 
wrapped with a whole bunch of tax cuts.
  Now, we are out here today to pass a bill, and the price has gotten 
down low enough that a lot of us will support it. It will go out of 
here almost unanimously. We are going to give $14 billion over the next 
3 years to the unemployed and $100 billion to the employers in the form 
of tax cuts.
  We had a famous member of the other body from our State who used to 
say, I would like to find a one-armed economist, because on the one 
hand they say things are going up and on the other hand they say things 
are going down. I do not know whether this bill is for the going ups or 
the going downs, because I hear that the recession is all over, that we 
have pulled out of it already because of all of the great things we 
have done. So why do we need this stimulus package? Why are we putting 
in $100 billion taken from the Social Security money?
  Over the next 3 years, the workers in this country are going to be 
paying Social Security so they can give a tax break to their bosses to 
buy more machines. Now, if we are out of the recession, then why do we 
need this stimulus package? We clearly need the money for unemployment 
for the 1.1 million people who have lost their jobs and lost their 
unemployment since 9-11. That is clear. But there is not any evidence 
that I see, at least from my State, that says they are all coming back 
to work now.
  Now, if a guy has a plant and he has equipment, why is he going to go 
out and invest in more unless there is a market? If you have, as we 
have, an 8 percent unemployment rate in Seattle, anybody investing to 
make more, I guess it can just sit in the warehouse. That would be good 
business, I guess, although I have never run a business, so I would not 
know if it is a good idea. But it does not seem very smart to buy a 
bunch of machinery for something that one cannot sell. Until the 
economy starts and people are back working, it is going to be very hard 
to convince people to go and buy more high-priced electronic equipment 
and all of the things that have gone down.
  Now, what is really aggravating about this is you will not give us a 
chance to have a pay-for, no chance to pay for it. No, no, no. This is 
the plan that says, if you are in a hole, keep digging. We are in a 
hole, and we are going to dig another $100 billion deeper, and we could 
reverse that. We could do something about that if we could have 
hearings and actually have meetings on this, but these things keep 
popping out of the committee without anybody ever having a chance to 
talk about them. We find out that, after all of these months, the State 
of Washington, we have to have a letter from the Department explaining 
how it is going to work.
  I urge everyone to vote for a bad compromise.
  Mr. THOMAS. Mr. Speaker, my understanding is the gentleman said that 
he was in favor of the bill? I did not hear the closing pitch. How 
ironic.
  Mr. Speaker, it is my pleasure to yield 1\1/2\ minutes to the 
gentleman from Missouri (Mr. Hulshof), a member of the Committee on 
Ways and Means.
  Mr. HULSHOF. Mr. Speaker, I rise in support of the Job Creation and 
Worker Assistance Act.
  This, Mr. Speaker, is the least we could do; literally, this is the 
least we could do, because of the political climate in which we find 
ourselves. This is a pragmatic solution.
  There have been a number of speakers who lament the fact that we have 
not provided worker assistance in the past, and I would remind my 
colleagues that we have provided that assistance in the three prior 
true stimulus bills. Perhaps we have missed some opportunities, because 
we also had some health assistance for displaced workers. My colleagues 
may recall we had some simplification of the capital gains holding 
period that a lot of small businesses have been asking us about. We had 
relief from the punitive Alternative Minimum Tax, which, I remind my 
colleagues, economically hits businesses at a time when they can least 
afford to be hit with this tax; that is, times of economic slowdown.
  Interestingly, the gentleman from Texas who spoke earlier talked 
about tax breaks for wealthy corporations. And yet, if these 
corporations are so wealthy, then why are we including a net operating 
loss carry-back?
  The fact is that these economic downtimes have caused many businesses 
to become awash in red ink. Ford Motor Company, for instance, that was 
on the top 10 recipients of additional tax relief on a chart that my 
colleagues on the other side of the aisle used recently, announced a 
layoff of a plant in St. Louis, Missouri, which is going to affect 
about 2,500 workers.
  Notwithstanding that, I think that this is a good bill and, as I have 
said before, inaction is not an option. I am glad that the House is 
finally acting.
  Mr. MATSUI. Mr. Speaker, I yield the balance of my time to the 
distinguished gentlewoman from the State of California (Ms. Pelosi), 
the Democratic whip.
  Ms. PELOSI. Mr. Speaker, I thank the gentleman for yielding and for 
his leadership on this very important issue.
  Well, here we are 6 months later, four legislative attempts and 
millions of jobs lost, finally passing a package to extend unemployment 
benefits for those affected by the recession and the September 11 
tragedy.

                              {time}  1215

  We have to review this legislation today in the context of this past 
year. One year ago, when the Clinton administration left office, we had 
the strongest economy in the history of our country. We had the biggest 
budget surplus in a generation.
  What a difference a year makes. Under the Bush economic package, we 
started into a recession, we started into reversing the tendency 
towards surplus and moved into deficit, and we have been advancing 
policies under the Republican leadership in the House to raid Social 
Security.
  Within that context came September 11, when we already had an economy 
moving into a recession. What a tragedy it was in so many respects for 
our country. Immediately this House acted, and probably appropriately, 
to bail out the airline industry in a matter of days from September 11.
  Many of us wanted to vote in tandem for that bill and a bill that 
would help bail out all of the workers who lost their jobs as a result 
of September 11 in the airline industry and in the related hospitality 
industry.
  But no, the emergency was only for the industry, and the workers 
would have to wait. So in good spirits and with good will, we voted for 
the airline bailout bill with the thought that the worker bailout would 
shortly come before us.
  Six months later, we still do not have that comprehensive worker 
bailout bill on the floor. What we have before us today is the very 
least that we could do, the very least that we could do, to extend for 
13 weeks the unemployment benefit package for the workers. Now we are 
at record numbers, 8 million unemployed in our country, record numbers 
of people going on unemployment every day.
  So when we talk about this bill before us today, we say that at long 
last we can be relevant to the pain and suffering in the families of 
America's working people because we will extend the benefits. But this, 
as I said, is the very least that we can do. Much more needs to be 
done.
  That is why next week the Democrats will launch a discharge petition 
calling to expand the number of people who would be available for 
unemployment benefits: temporary workers,

[[Page H765]]

those below a certain wage scale. It would also include in it a health 
package benefit, so that there would be funding to allow people to take 
advantage of COBRA extension of their health benefits, because health 
benefits are a very, very important part of the job, and should be a 
very important part of an unemployment benefit package.
  Mr. Speaker, today we certainly vote to extend the benefits for 
American workers' families, but we recognize that this, as I said, is 
the very least that we can do.
  The fight continues. Next week we will continue with the discharge 
petition.
  Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume.
  First of all, Mr. Speaker, I want to thank the gentlewoman for her 
discordant, partisan remarks.
  Mr. Speaker, I am very pleased to yield the remainder of our time to 
the gentleman from Illinois (Mr. Hastert), the Speaker of the House of 
Representatives.
  Mr. HASTERT. Mr. Speaker, I thank the gentleman for yielding time to 
me.
  Mr. Speaker, I think today we have a bill that I hope we can vote for 
on both sides of the aisle. At least, that sounds like the debate that 
we have had.
  Two or 3 weeks ago, we had a bill on the floor that basically did the 
same thing. We also had health care provisions. Last Monday, I received 
a letter from the minority leader that said ``I don't want UI and 
health care benefits put together in this bill.'' We took it out. Now 
we have a bill that basically has UI benefits.
  We have three things that I think are important for this country, not 
only helping those people who are out of work, and they need help, but 
also, most people who are out of work will tell us one thing: They want 
a job. It is our job to help create jobs in this country.
  There are some fundamental things we can do. First of all, all 
American families that work have accumulated some kind of wealth, 
either through 401(k)s or mutual funds or savings accounts or pensions. 
They lost value after September 11. Luckily, that value is starting to 
come back, and people are seeing that their savings are starting to be 
restored.
  But that is a valuable asset that we have in this country. That is a 
valuable asset for every American family. We need to get confidence in 
those markets that people will put money back in again and see that 
value rise.
  The second thing that we needed to do is get confidence in consumers, 
because what this Congress has done over the past 3 years is paid down 
$450 billion of public debt, so we do not have the Federal Government 
out there competing with the private sector for capital. We have helped 
keep interest rates low.
  I say ``helped keep'' because the Federal Reserve has helped us, but 
they have been able to help us because we have done what we have done. 
With low interest rates, we read that housing starts are up 6 million 
last year, unprecedented in a time of recession, but this helped keep 
the economy going. The auto industry is going. A lot of things are 
starting back up. We have helped that happen. This bill will give 
consumers confidence, also.
  The third thing that we needed to do, and we will do in this bill, is 
to help amass capital in very crucial spots so that money will be 
invested in creating jobs. Creating jobs is not a hocus-pocus, or it is 
not something where we wave a wand over and it just happens. We have to 
create it. We have to make sure that there is capital amassed so people 
invest in new ideas, new construction, new capital equipment, and the 
ideas that create jobs in this country. That has been this Nation's 
strength. We do it in this bill.
  We are going to be successful in the bill because 2 weeks ago we did 
not wave a white flag and say, ``We will just pass UI and we will roll 
over dead.'' We fought back, we got a good piece of legislation. I 
think that the Senate ought to pick this legislation up and pass it.
  Mrs. CHRISTENSEN. Mr. Speaker, I rise in support of H.R. 3090, the 
Job Creation and Worker Assistance Act. I am pleased that we appear to 
be finally on our way towards giving relief to the millions of 
Americans who have exhausted their unemployment benefits.
  I want to thank the Chairman and Ranking Democrat of the Ways and 
Means Committee, Representatives Thomas and Rangel for including the 
annual Tax Extenders bill in the H.R. 3090 which includes the very 
important extension of the Rum Cover-Over for the Virgin Islands and 
Puerto Rico. The Rum Rebate, as it is known in my district, is 
critically important because it is used to secure the bonds that the 
Government of Virgin Islands issues to pay for the public 
infrastructure needs of the territory.
  Mr. Speaker, I applaud the leadership you and your fellow majority 
leadership members have shown in crafting an unemployment extension 
bill which has strong bipartisan support and which has a good chance of 
becoming law soon because it does not contain any of the controversial 
tax breaks that were included in earlier bills such as the repeal of 
the corporate minimum tax. On balance this is a good bill and I urge my 
colleagues to support its passage.
  Mrs. MALONEY of New York. Mr. Speaker, I rise to express my relief 
that we are finally voting on legislation that will help unemployed 
Americans.
  I have heard countless stories of working men and women who cannot 
find jobs in these uncertain economic times. Families have been crying 
out for help, and it's time that we give them the relief that they 
need.
  The aftershocks of 9/11 have affected thousands of workers. In my 
state alone, unemployment has increased by almost 2 percent since last 
January.
  More than one hundred thousand New Yorkers were displaced by the 
terrorist attacks, and they shouldn't shoulder the economic burden of 
9/11 alone.
  Federal grants to extend unemployment make sense not only for New 
York, but for the nation as a whole.
  I am pleased that this legislation contains the 13-week extension of 
unemployment benefits.
  However, we must continue our efforts to ensure that laid-off workers 
without health care benefits obtain the coverage that they need.
  I only hope that this relief will not linger in conference so that 
workers will not have to worry about paying rent, sending their 
children to college, or going to the doctor.
  It's time to pass this benefits package.
  Mr. POMEROY. Mr. Speaker, I rise in strong support of H.R. 3090, the 
Job Creation and Worker Assistance Act of 2002. I only regret that it 
took five months for the majority to bring forward a responsible, 
bipartisan bill that provides assistance to unemployed workers, helps 
stimulate investment in our economy, but does not further harm our 
long-term budget outlook. Although the delay is unfortunate, we have a 
good bill on the floor today and I urge my colleagues to support it.
  First, the bill helps unemployed workers by extending the limit on 
unemployment insurance from 26 to 39 weeks. Importantly, the bill also 
expands UI benefits by providing funds to assist part-time workers who 
have lost their jobs. At a time when 80,000 workers per week are 
exhausting their UI benefits, the 13-week extension in this bill is 
sorely needed. This Congress has been promising for months to help 
displaced workers; the bill before us finally delivers on that promise.
  Second, the bill encourages new investment to help lift our 
sputtering economy. It provides businesses with a 30 percent bonus 
depreciation for plant and equipment placed in service after the 
terrorist attack of September 11. This will give businesses a powerful 
incentive to expand their operations and grow the economy. In addition, 
the bill extends the net operating loss carry-back from two years to 
five, so that businesses can take advantage of their loss deductions, 
freeing up funds for new investment.
  Third, the bill extends expiring tax credits, including the Welfare-
to-Work Tax Credit and the Work Opportunity Tax Credit. Importantly for 
North Dakota, the bill extends the taxable income limit for oil 
production from marginal wells and the tax credit for wind energy 
production. North Dakota is not only a major producer of oil, it is 
number one in the nation in the potential for energy generation from 
wind. Both of these provisions will be of significant benefit to my 
home state.
  Finally, the provisions of this bill are temporary, which has two 
benefits. First, it will encourage businesses to act now, when new 
investment is needed most to boost the economy. Second, it will 
minimize the harm to the long-term budget outlook. As each of us knows, 
the 10-year budget is projected to divert $1.56 trillion from the 
Social Security trust fund. By limiting the term of these provisions, 
we stimulate the economy without setting back our efforts to balance 
the budget without using Social Security.
  Mr. Speaker, I support this legislation and urge its adoption.
  Mr. BLUMENAUER. Mr. Speaker, I rise today in strong support of the 
Job Creation and Worker Assistance Act of 2002. In extending 
unemployment benefits for 13 weeks, this

[[Page H766]]

legislation goes a long way toward providing critical economic 
assistance to workers and small businesses around the country.
  The current economic downturn has had a tremendous impact on the 
Pacific Northwest. The State of Oregon, in particular, has the highest 
unemployment rate in the country. Some of our most important market 
sectors, such as technology, agriculture, and forestry, have been hard 
hit in the last year. This legislation will help our state and our 
nation until people get back to work.
  The bill before us today strikes a balance between the need to assist 
our country's workers while recognizing the very real financial 
constraints our government is facing. The 13-week extension of 
unemployment benefits will help the many in my district who have had 
trouble regaining employment due to the events of September 11th and 
the economic downturn and have exhausted their regular benefits.
  In addition, I strongly support the provisions of the legislation on 
accelerated depreciation. Under current law, the recovery period for 
most personal property through the depreciation process is anywhere 
from three to 25 years. This legislation would allow a temporary 
additional first-year deduction of 30 percent for property that 
generally has a recovery period of 20 years or less, and was purchased 
on or after September 11, 2001. Small businesses and individuals around 
the country will be able to use this provision to recover more of their 
capital costs more quickly, in turn allowing them to use these funds to 
employ more workers and purchase more goods and services.
  Finally, this legislation extends a number of important tax 
provisions, such as welfare-to-work, the tax credit for electric 
vehicles, wind and bio mass and, perhaps most important, tax incentives 
to encourage reconstruction and redevelopment of the New York ``Liberty 
Zone'' surrounding the World Trade Center. These tax incentives will 
provide further stimulus to those sectors of the economy desperately in 
need of assistance, while improving the livability of our communities.
  Mr. Speaker, this legislation is absolutely necessary to ensure that 
workers in Oregon communities and across the country can provide for 
their families until they get back to work. I urge my colleagues to 
support the legislation.
  Mr. UDALL of New Mexico. Mr. Speaker, it gives me great pleasure to 
rise today in support of a worker assistance measure that will finally 
benefit the men and women who need it the most--the unemployed. I am 
also happy to see that we were finally able to work in a bipartisan 
fashion to get important legislation crafted for individuals strongly 
in need of help.
  I cannot tell you, Mr. Speaker, how many phone calls my office 
received from people who were nearing the end of their unemployment 
benefits, and were still struggling to find employment despite constant 
efforts to do so. Unfortunately, since last fall, Republicans have been 
playing nothing more than dirty pool by pushing so-called stimulus 
packages with accelerated tax cuts, corporate AMT refunds running back 
to 1986, and poorly conceived health insurance tax credits.
  Nevertheless, as the old adage goes, ``it's better late than never.'' 
And, although Federal Reserve Chairman Greenspan is on the Hill today 
proclaiming that economic recovery is ``well under way,'' there are 
thousands of Americans, and many of New Mexicans who are still not 
seeing the benefits of a recovering economy. That is why I am glad the 
majority finally decided to do what is right and bring forth a real, 
meaningful worker assistance bill without controversial tax breaks.
  I am pleased to support this legislation and urge my colleagues to do 
the same. Worker assistance is long overdue.
  Mr. SHOWS. Mr. Speaker, today we are considering a measure to extend 
unemployment benefits for an additional 13 weeks.
  On Monday we will mourn the 6-month anniversary of September 11. 
However, with this anniversary comes issues that Congress must address. 
Among those is the fact that unemployment benefits will expire on 
Monday. Unemployed Americans are counting on us to help them get 
through another difficult situation.
  We keep hearing about the need to stimulate our sagging economy. 
Tough economic times were made worse in the aftermath of September 
11th, but I can tell you that back in Mississippi too many people were 
losing their jobs before then.
  And we can only blame ourselves for enacting trade policies that have 
sent Mississippi jobs packing across our borders. We did it with NAFTA 
and I am afraid we're going to do it again with Fast Track.
  Since September 2001, more than 1.3 million Americans have exhausted 
their unemployment benefits. In Mississippi alone, more than 7,200 men 
and women have exhausted their benefits since November, compared to 
4,700 unemployment workers during the same time period in 2000--a 54 
percent increase. And we continue to experience new factory closures 
every week in Mississippi.
  So, while we argue over ways to jump-start our sluggish economy, it 
is just as important that we help the victims of that economy.
  This Congress has had ample opportunity to help our unemployed--our 
once working American families--but the leadership of this body chose 
not to act. This is why I filed the discharge petition to bring this 
bill to the floor. It's too bad we had to resort to this measure--to 
bypass regular order--to force action on this essential measure.
  However, at least today we will and rectify this economic situation 
and help American workers who need their government to work for them in 
this difficult time.
  Mr. HINOJOSA. Mr. Speaker, I rise today in support of the Job 
Creation and Workers Assistance Act, H.R. 3090. On behalf of my 
constituents in the 15th Congressional District of Texas, which has 
suffered from a chronic double-digit unemployment rate for decades, 
this bill is long overdue. I am glad that the majority decided to bring 
a bill to the floor upon which we have broad agreement, and which will 
be well received by the other body--the Senate.
  Mr. Speaker, this bill represents the kind of constructive compromise 
that must be the cornerstone of our efforts to create public policy 
that promotes job growth and economic prosperity. This bill includes 
provisions that will provide much-needed relief to our unemployed 
workers who have been losing their benefits. It also provides effective 
and immediate tax relief that will help businesses to survive these 
difficult economic times and lead our Nation to renewed economic 
growth.
  I applaud my colleagues on both sides of the aisle for coming 
together to craft this ``economically sound'' bill in our Nation's time 
of need, and I urge support for the resolution and the bill.
  Mr. ETHERIDGE. Mr. Speaker, I rise in strong support of H.R. 3090, 
the Job Creation and Worker Assistance Act. This bill, like the bill 
the Senate passed a few weeks ago, extends unemployment benefits for 13 
weeks and provides temporary tax relief for businesses that will truly 
help stimulate our economy. H.R. 3090 represents the kind of temporary, 
immediate and affordable relief I advocated for months.
  Mr. Speaker, for months, the House Leadership has continued to bring 
up only sham tax bills instead of relief for unemployed workers. In 
fact, the worker relief package we are considering today could have 
been law months ago if House Republicans had not insisted on attaching 
controversial and ineffective tax breaks for special corporate 
interests to previous stimulus packages.
  While the relief contained in H.R. 3090 is a step in the right 
direction, we must not stand pat. As we approach the six-month 
anniversary of the terrible events of September 11, Congress must pass 
additional common sense legislation to jump-start our economy and put 
our people back to work. We must address the issue of health insurance 
for the unemployed. Mr. Speaker, providing health insurance for the 
unemployed and extending unemployment benefits must go hand in hand. 
And we should enact visionary policies to prompt long-term economic 
growth, prosperity and opportunity for all Americans willing to work 
hard to make the most of their God-given abilities. I am hopeful that 
Congress will address these important priorities in the coming months.
  The SPEAKER pro tempore (Mr. LaTourette). All time for debate has 
expired.
  Pursuant to House Resolution 360, the previous question is ordered on 
the motion.
  The question is on the motion offered by the gentleman from 
California (Mr. Thomas).
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.
  Mr. THOMAS. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The vote was taken by electronic device, and there were--yeas 417, 
nays 3, not voting 15, as follows:

                             [Roll No. 52]

                               YEAS--417

     Abercrombie
     Ackerman
     Aderholt
     Akin
     Allen
     Andrews
     Armey
     Baca
     Bachus
     Baird
     Baker
     Baldacci
     Baldwin
     Ballenger
     Barcia
     Barr
     Barrett
     Bartlett
     Bass
     Becerra
     Bereuter
     Berkley
     Berman
     Berry
     Biggert
     Bilirakis
     Bishop
     Blumenauer
     Blunt
     Boehlert
     Boehner
     Bonilla
     Bonior
     Bono
     Boozman
     Borski
     Boswell
     Boucher
     Brady (PA)
     Brady (TX)
     Brown (FL)
     Brown (OH)
     Brown (SC)
     Bryant
     Burr
     Burton
     Buyer
     Callahan
     Camp
     Cannon
     Cantor
     Capito
     Capps
     Capuano
     Cardin
     Carson (IN)
     Carson (OK)
     Castle
     Chabot
     Chambliss
     Clay
     Clayton
     Clement
     Clyburn
     Coble
     Collins
     Combest
     Conyers
     Cooksey

[[Page H767]]


     Costello
     Cox
     Coyne
     Cramer
     Crane
     Crenshaw
     Crowley
     Culberson
     Cummings
     Cunningham
     Davis (CA)
     Davis (FL)
     Davis (IL)
     Davis, Jo Ann
     Davis, Tom
     Deal
     DeFazio
     DeGette
     Delahunt
     DeLauro
     DeLay
     DeMint
     Deutsch
     Diaz-Balart
     Dicks
     Dingell
     Doggett
     Dooley
     Doolittle
     Doyle
     Dreier
     Duncan
     Dunn
     Edwards
     Ehlers
     Ehrlich
     Emerson
     Engel
     English
     Eshoo
     Etheridge
     Evans
     Everett
     Farr
     Fattah
     Ferguson
     Filner
     Flake
     Fletcher
     Foley
     Forbes
     Ford
     Fossella
     Frank
     Frelinghuysen
     Frost
     Ganske
     Gekas
     Gephardt
     Gibbons
     Gilchrest
     Gillmor
     Gilman
     Gonzalez
     Goode
     Goodlatte
     Gordon
     Goss
     Graham
     Granger
     Graves
     Green (TX)
     Green (WI)
     Greenwood
     Grucci
     Gutierrez
     Gutknecht
     Hall (OH)
     Hall (TX)
     Hansen
     Harman
     Hart
     Hastert
     Hastings (FL)
     Hastings (WA)
     Hayes
     Hayworth
     Hefley
     Herger
     Hill
     Hilleary
     Hilliard
     Hinchey
     Hinojosa
     Hobson
     Hoeffel
     Hoekstra
     Holden
     Holt
     Honda
     Hooley
     Horn
     Hostettler
     Houghton
     Hoyer
     Hulshof
     Hunter
     Hyde
     Inslee
     Isakson
     Israel
     Issa
     Istook
     Jackson (IL)
     Jefferson
     Jenkins
     John
     Johnson (CT)
     Johnson (IL)
     Johnson, E. B.
     Johnson, Sam
     Jones (NC)
     Jones (OH)
     Kanjorski
     Kaptur
     Keller
     Kelly
     Kennedy (MN)
     Kennedy (RI)
     Kerns
     Kildee
     Kilpatrick
     Kind (WI)
     King (NY)
     Kingston
     Kirk
     Kleczka
     Knollenberg
     Kolbe
     Kucinich
     LaFalce
     LaHood
     Lampson
     Langevin
     Lantos
     Larsen (WA)
     Larson (CT)
     Latham
     LaTourette
     Leach
     Lee
     Levin
     Lewis (CA)
     Lewis (GA)
     Lewis (KY)
     Linder
     Lipinski
     LoBiondo
     Lowey
     Lucas (KY)
     Lucas (OK)
     Luther
     Lynch
     Maloney (CT)
     Maloney (NY)
     Manzullo
     Markey
     Mascara
     Matheson
     Matsui
     McCarthy (MO)
     McCarthy (NY)
     McCollum
     McCrery
     McDermott
     McGovern
     McHugh
     McInnis
     McIntyre
     McKeon
     McKinney
     McNulty
     Meehan
     Meeks (NY)
     Menendez
     Mica
     Millender-McDonald
     Miller, Dan
     Miller, Gary
     Miller, George
     Miller, Jeff
     Mink
     Mollohan
     Moore
     Moran (KS)
     Moran (VA)
     Morella
     Murtha
     Myrick
     Nadler
     Napolitano
     Nethercutt
     Ney
     Northup
     Norwood
     Nussle
     Oberstar
     Obey
     Olver
     Ortiz
     Osborne
     Ose
     Otter
     Owens
     Oxley
     Pallone
     Pascrell
     Pastor
     Paul
     Payne
     Pelosi
     Pence
     Peterson (MN)
     Peterson (PA)
     Petri
     Phelps
     Pickering
     Pitts
     Platts
     Pombo
     Pomeroy
     Portman
     Price (NC)
     Pryce (OH)
     Putnam
     Quinn
     Radanovich
     Rahall
     Ramstad
     Rangel
     Regula
     Rehberg
     Reyes
     Reynolds
     Riley
     Rivers
     Rodriguez
     Roemer
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Ros-Lehtinen
     Ross
     Rothman
     Roukema
     Roybal-Allard
     Royce
     Rush
     Ryan (WI)
     Ryun (KS)
     Sabo
     Sanders
     Sandlin
     Sawyer
     Saxton
     Schaffer
     Schakowsky
     Schiff
     Schrock
     Scott
     Sensenbrenner
     Serrano
     Sessions
     Shadegg
     Shaw
     Shays
     Sherman
     Sherwood
     Shimkus
     Shows
     Shuster
     Simmons
     Simpson
     Skeen
     Skelton
     Slaughter
     Smith (MI)
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Snyder
     Souder
     Spratt
     Stark
     Stearns
     Strickland
     Stump
     Stupak
     Sullivan
     Sununu
     Sweeney
     Tancredo
     Tanner
     Tauscher
     Tauzin
     Taylor (NC)
     Terry
     Thomas
     Thompson (CA)
     Thompson (MS)
     Thornberry
     Thune
     Thurman
     Tiahrt
     Tiberi
     Tierney
     Toomey
     Towns
     Turner
     Udall (CO)
     Udall (NM)
     Upton
     Velazquez
     Visclosky
     Vitter
     Walden
     Walsh
     Wamp
     Waters
     Watkins (OK)
     Watson (CA)
     Watt (NC)
     Watts (OK)
     Waxman
     Weiner
     Weldon (FL)
     Weldon (PA)
     Weller
     Whitfield
     Wicker
     Wilson (NM)
     Wilson (SC)
     Wolf
     Woolsey
     Wu
     Wynn
     Young (AK)
     Young (FL)

                                NAYS--3

     Boyd
     Stenholm
     Taylor (MS)

                             NOT VOTING--15

     Barton
     Bentsen
     Blagojevich
     Calvert
     Condit
     Cubin
     Gallegly
     Jackson-Lee (TX)
     Lofgren
     Meek (FL)
     Neal
     Sanchez
     Solis
     Traficant
     Wexler

                              {time}  1246

  Mr. BERRY changed his vote from ``nay'' to ``yea''.
  So the motion was agreed to.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.
  Stated for:
  Ms. SOLIS. Mr. Speaker, during rollcall vote No. 52 on H.R. 3090, to 
provide tax incentives for economic recovery I was unavoidably 
detained. Had I been present, I would have voted ``yea.''

                          ____________________