[Congressional Record Volume 149, Number 28 (Friday, February 14, 2003)]
[Senate]
[Pages S2522-S2547]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. SANTORUM (for himself, Mr. Fitzgerald, Mr. Campbell, Mr.
DeWine, Mr. Frist, Mr. Brownback, Mr. Ensign, Mr. Inhofe, Mr.
Kyl, Mr. Lugar, Mr. Allard, Mr. McCain, Mr. Roberts, Mr.
Shelby, Mr. Warner, Mr. McConnell, Mr. Hatch, Mr. Voinovich,
Mr. Hagel, Mr. Bunning, Mr. Domenici, Mr. Smith, Mr. Graham of
South Carolina, Mr. Enzi, Mr. Lott, Mrs. Dole, Mr. Allen, Mr.
Cornyn, Mr. Nickles, Mr. Grassley, Mr. Talent, Mr. Bond, Mr.
Thomas, Mr.
[[Page S2523]]
Craig, Mr. Chambliss, Mr. Sessions, Mr. Gregg, Mr. Bennett, and
Mr. Coleman):
S. 3. A bill to prohibit the procedure commonly known as partial-
birth abortion; read the first time.
Mr. SANTORUM. Mr. President, I rise today to introduce the Partial
Birth Abortion Ban Act of 2003. I am joined in introducing this bill by
38 of my colleagues, over a third of the Senate. This bill is written
to prohibit one particularly gruesome, inhumane, and medically
unaccepted late term abortion method, except when the procedure is
necessary to save the life of the mother. Partial birth abortion is a
procedure that is performed over a 3-day period in the second or third
trimester of pregnancy. In this particular abortion technique, the
physician delivers all but the head of a living baby through the birth
canal, stab the baby in the base of the skull with curved scissors, and
the uses a suction catheter to remove the child's brain. This procedure
kills the baby. After collapsing the skull, the doctor completes the
procedure. According to Ron Fitzsimmons of the National Coalition of
Abortion Providers, this procedure is performed on a healthy mother
with a healthy fetus that is 20 weeks or more along in the vast
majority of cases.
The American public finds this procedure repugnant. A recent CNN/USA
Today/Gallup poll indicated that 70 percent of Americans favored laws
making it illegal to perform partial birth abortions, except when
necessary to save the life of the mother. This procedure is also
unrecognized by the mainstream medical community as a valid abortion
procedure. The American Medical Association has said this procedure is
``not good medicine,'' is ``ethically wrong,'' and ``not an accepted
`medical practice'.''
As far back as the 104th Congress, the Senate and the House of
Representatives both acted to ban this procedure. Unfortunately,
President Clinton vetoed that bill. The House voted to override that
veto, but the Senate fell short. Likewise, during the 105th Congress,
the House and Senate acted to pass a bill banning this procedure.
Again, President Clinton vetoed that bill banning an abortion procedure
that occurs as the child is inches from being completely outside the
mother. The House subsequently overrode his veto. The Senate failed to
override by just three votes. In the 106th Congress as well, the Senate
and the House both acted to overwhelmingly pass legislation banning
this procedure.
A little over two years ago, the U.S. Supreme Court, in its Stenberg
versus Carhart decision, struck down a similar, but not identical, law
in the state of Nebraska that banned partial birth abortions. The
Stenberg majority opinion voiced concern that the description of the
abortion procedure as described in the Nebraska law was vague and might
apply to other types of late-term abortions. A second concern was that
the law did not provide an exception for those instances when the
banned procedure was judged necessary to preserve the health of the
mother.
Last year, during the 107th Congress, Representative Steve Chabot of
Ohio introduced a bill responding to those concerns. This bill passed
the House of Representatives by a vote of 274-151. Unfortunately, the
Senate was kept from considering this bill.
Today, I introduced a similar bill banning the horrific procedure of
partial birth abortion, except when necessary to save the life of a
mother. To respond to the Supreme Court's concerns in Stenberg, this
bill provides a very precise definition of the partial birth abortion
procedure to make it very clear what procedure is meant.
Second, the Court based its decision in Stenberg on the federal
district court's factual findings regarding the safety of the partial
birth abortion procedure. These findings were highly disputed and
inconsistent with the overwhelming weight of authority on the issue--
including evidence presented at the Stenberg trial, other trials
challenging partial birth abortion bans, and at the extensive
Congressional hearings that have been held over the years. Despite the
lack of evidence supporting the district court's findings, the Supreme
Court was required to accept them because of the ``clearly erroneous''
standard that is applied to lower court factual findings. However,
under well-settled Supreme Court jurisprudence, the Congress is not
required to accept these ``factual findings,'' but is entitled to reach
its own factual findings--findings that the Supreme Court accords great
deference--and may enact legislation based on these findings. The bill
I introduce today includes a series of findings from congressional
hearings held over the years and from expert testimony that
demonstrates that a partial birth abortion is never necessary to
preserve the health of the mother, poses significant health risks to
the woman, and is outside the standard of medical care.
Over the years, during the consideration of this ban, proponents of
partial birth abortion have supported their arguments for this
procedure with myth and misinformation. When the time comes for the
full Senate to consider this bill, I look forward to again countering
those untruths with the truth, and I ask my colleagues to vote to ban
partial birth abortion.
It is long past time for the U.S. Senate to again pass a bill banning
partial birth abortion. I am pleased that the Senate leadership has
seen this as a legislative priority for the 108th Congress. The House
and Senate have overwhelming supported such a ban time and time again.
President Bush has asked us to send him a bill to end the practice of
partial birth abortion. The American people clearly believe this is a
procedure that should be prohibited. I appreciate the support of so
many of my colleagues who have joined me in introducing this bill. And
I am hopeful--very hopeful--that the 108th Congress will not end before
this bill becomes law, before children in the very process of being
born are protected by the laws of this great nation of ours.
______
By Mr. DASCHLE:
S.414. A bill to provide an economic stimulus package, and for other
purposes; read the first time.
Mr. DASCHLE. Mr. President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 414
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF
CONTENTS.
(a) Short Title.--This Act may be cited as the ``Economic
Recovery Act of 2003''.
(b) Amendment of 1986 Code.--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; amendment of 1986 Code; table of contents.
TITLE I--BROAD-BASED TAX CUT
Sec. 101. Broad-based tax cut.
TITLE II--BUSINESS TAX CUT
Sec. 201. Increased bonus depreciation.
Sec. 202. Modifications to expensing under section 179.
Sec. 203. Credit for employee health insurance expenses.
Sec. 204. Broadband Internet access tax credit.
TITLE III--STATE FISCAL RELIEF
Sec. 301. General revenue sharing with States and their local
governments.
Sec. 302. Homeland security.
Sec. 303. Funding for education.
Sec. 304. Temporary State FMAP relief.
Sec. 305. Funding for transportation infrastructure.
TITLE IV--UNEMPLOYMENT ASSISTANCE
Subtitle A--Additional Weeks of Temporary Extended Unemployment
Compensation
Sec. 401. Entitlement to additional weeks of temporary extended
unemployment compensation.
Subtitle B--Temporary Enhanced Regular Unemployment Compensation
Sec. 411. Federal-State agreements.
Sec. 412. Payments to States having agreements under this title.
Sec. 413. Financing provisions.
Sec. 414. Definitions.
Sec. 415. Applicability.
Sec. 416. Coordination with the Temporary Extended Unemployment
Compensation Act of 2002.
TITLE V--LONG-TERM FISCAL DISCIPLINE
Subtitle A--Provisions Designed To Curtail Tax Shelters
Sec. 501. Clarification of economic substance doctrine.
Sec. 502. Penalty for failing to disclose reportable transaction.
Sec. 503. Accuracy-related penalty for listed transactions and other
reportable transactions having a significant tax
avoidance purpose.
[[Page S2524]]
Sec. 504. Penalty for understatements attributable to transactions
lacking economic substance, etc.
Sec. 505. Modifications of substantial understatement penalty for
nonreportable transactions.
Sec. 506. Tax shelter exception to confidentiality privileges relating
to taxpayer communications.
Sec. 507. Disclosure of reportable transactions.
Sec. 508. Modifications to penalty for failure to register tax
shelters.
Sec. 509. Modification of penalty for failure to maintain lists of
investors.
Sec. 510. Modification of actions to enjoin certain conduct related to
tax shelters and reportable transactions.
Sec. 511. Understatement of taxpayer's liability by income tax return
preparer.
Sec. 512. Penalty on failure to report interests in foreign financial
accounts.
Sec. 513. Frivolous tax submissions.
Sec. 514. Regulation of individuals practicing before the Department of
Treasury.
Sec. 515. Penalty on promoters of tax shelters.
Sec. 516. Statute of limitations for taxable years for which listed
transactions not reported.
Sec. 517. Denial of deduction for interest on underpayments
attributable to nondisclosed reportable and noneconomic
substance transactions.
Sec. 518. Authorization of appropriations for tax law enforcement.
Subtitle B--Other Provisions
Sec. 521. Affirmation of consolidated return regulation authority.
Sec. 522. Signing of corporate tax returns by chief executive officer.
Sec. 523. Disclosure of tax shelters to corporate audit committee.
Subtitle C--Budget Points of Order
Sec. 531. Extension of pay-as-you-go enforcement in the Senate.
TITLE I--BROAD-BASED TAX CUT
SEC. 101. BROAD-BASED TAX CUT.
(a) In General.--The Secretary of the Treasury shall pay,
out of any money in the Treasury not otherwise appropriated,
to each eligible taxpayer an amount equal to 10 percent of
the eligible portion of the taxpayer's adjusted gross income
(as defined in section 62 of the Internal Revenue Code of
1986) for a taxable year beginning in 2002.
(b) Eligible Taxpayer.--For purposes of this section, the
term ``eligible taxpayer'' means any individual other than--
(1) any estate or trust,
(2) any nonresident alien, or
(3) any individual with respect to whom a deduction under
section 151 of such Code is allowable to another taxpayer for
a taxable year beginning in 2003.
(c) Eligible Portion.--For purposes of this section--
(1) In general.--With respect to each eligible taxpayer,
the eligible portion shall be equal to the sum of--
(A) $3,000 ($6,000 in the case of a taxpayer filing a joint
return under section 6013 of such Code), plus
(B) $3,000 for each qualifying child of the taxpayer, not
to exceed $6,000.
(2) Qualifying child.--The term ``qualifying child'' has
the meaning given such term by section 24(c) of such Code.
(d) Remittance of Payment.--The Secretary of the Treasury
shall remit the payment described in subsection (a) to the
taxpayer as soon as practicable after the date of the
enactment of this section.
TITLE II--BUSINESS TAX CUT
SEC. 201. INCREASED BONUS DEPRECIATION.
(a) In General.--Subsection (k) of section 168 (relating to
accelerated cost recovery system) is amended--
(1) by adding at the end of paragraph (1) the following new
flush sentence:
``In the case of any qualified property acquired by the
taxpayer pursuant to a written binding contract which was
entered into after December 31, 2002, subparagraph (A) shall
be applied by substituting `50 percent' for `30 percent'.'',
(2) by striking ``September 11, 2004'' each place it
appears and inserting ``January 1, 2004'',
(3) by striking ``September 11, 2004'' and inserting
``January 1, 2004'', and
(4) by striking ``pre-september 11, 2004'' and inserting
``pre-january 1, 2004''.
(b) Conforming Amendments.--
(1) The heading for clause (i) of section 1400L(b)(2)(C) of
the Internal Revenue Code of 1986 is amended by striking ``30
percent additional'' and inserting ``Additional''.
(2) Section 1400L(b)(2)(D) of such Code is amended by
inserting ``(as in effect on the day after the date of the
enactment of this section)'' after ``section 168(k)(2)(D)''.
(c) Effective Date.--The amendments made by this section
shall apply to property acquired after December 31, 2002.
SEC. 202. MODIFICATIONS TO EXPENSING UNDER SECTION 179.
(a) Increase of Amount Which May Be Expensed.--
(1) In general.--Paragraph (1) of section 179(b) (relating
to dollar limitation) is amended to read as follows:
``(1) Dollar limitation.--The aggregate cost which may be
taken into account under subsection (a) for any taxable year
shall not exceed $25,000 ($75,000 in the case of any taxable
year beginning in 2003).''
(2) Increase in phaseout threshold.--Paragraph (2) of
section 179(b) is amended by striking ``$200,000'' and
inserting ``$200,000 ($325,000 in the case of any taxable
year beginning in 2003)''.
(b) Effective Date.--The amendments made by this section
shall apply to property placed in service in taxable years
beginning after December 31, 2002.
SEC. 203. CREDIT FOR EMPLOYEE HEALTH INSURANCE EXPENSES.
(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 (relating to business-related credits) is amended
by adding at the end the following:
``SEC. 45G. EMPLOYEE HEALTH INSURANCE EXPENSES.
``(a) General Rule.--For purposes of section 38, in the
case of a qualified small employer, the employee health
insurance expenses credit determined under this section is an
amount equal to the applicable percentage of the amount paid
by the taxpayer during the taxable year for qualified
employee health insurance expenses.
``(b) Applicable Percentage.--For purposes of subsection
(a), the applicable percentage is equal to--
``(1) 50 percent in the case of an employer with less than
26 qualified employees,
``(2) 40 percent in the case of an employer with more than
25 but less than 36 qualified employees, and
``(3) 30 percent in the case of an employer with more than
35 but less than 51 qualified employees.
``(c) Per Employee Dollar Limitation.--The amount of
qualified employee health insurance expenses taken into
account under subsection (a) with respect to any qualified
employee for any taxable year shall not exceed the maximum
employer contribution for self-only coverage or family
coverage (as applicable) determined under section 8906(a) of
title 5, United States Code, for the calendar year in which
such taxable year begins.
``(d) Definitions and Special Rules.--For purposes of this
section--
``(1) Qualified small employer.--
``(A) In general.--The term `qualified small employer'
means any small employer which provides eligibility for
health insurance coverage (after any waiting period (as
defined in section 9801(b)(4)) to all qualified employees of
the employer.
``(B) Small employer.--
``(i) In general.--For purposes of this paragraph, the term
`small employer' means, with respect to any calendar year,
any employer if such employer employed an average of not less
than 2 and not more than 50 qualified employees on business
days during either of the 2 preceding calendar years. For
purposes of the preceding sentence, a preceding calendar year
may be taken into account only if the employer was in
existence throughout such year.
``(ii) Employers not in existence in preceding year.--In
the case of an employer which was not in existence throughout
the 1st preceding calendar year, the determination under
clause (i) shall be based on the average number of qualified
employees that it is reasonably expected such employer will
employ on business days in the current calendar year.
``(2) Qualified employee health insurance expenses.--
``(A) In general.--The term `qualified employee health
insurance expenses' means any amount paid by an employer for
health insurance coverage to the extent such amount is
attributable to coverage provided to any employee while such
employee is a qualified employee.
``(B) Exception for amounts paid under salary reduction
arrangements.--No amount paid or incurred for health
insurance coverage pursuant to a salary reduction arrangement
shall be taken into account under subparagraph (A).
``(C) Health insurance coverage.--The term `health
insurance coverage' has the meaning given such term by
paragraph (1) of section 9832(b) (determined by disregarding
the last sentence of paragraph (2) of such section).
``(3) Qualified employee.--The term `qualified employee'
means an employee of an employer who, with respect to any
period, is not provided health insurance coverage under--
``(A) a health plan of the employee's spouse,
``(B) title XVIII, XIX, or XXI of the Social Security Act,
``(C) chapter 17 of title 38, United States Code,
``(D) chapter 55 of title 10, United States Code,
``(E) chapter 89 of title 5, United States Code, or
``(F) any other provision of law.
``(4) Employee--The term `employee'--
``(A) means any individual, with respect to any calendar
year, who is reasonably expected to receive at least $5,000
of compensation from the employer during such year,
``(B) does not include an employee within the meaning of
section 401(c)(1), and
``(C) includes a leased employee within the meaning of
section 414(n).
``(5) Compensation.--The term `compensation' means amounts
described in section 6051(a)(3).
``(e) Certain Rules Made Applicable.--For purposes of this
section, rules similar to the rules of section 52 shall
apply.
[[Page S2525]]
``(f) Denial of Double Benefit.--No deduction or credit
under any other provision of this chapter shall be allowed
with respect to qualified employee health insurance expenses
taken into account under subsection (a).
``(g) Termination.--This section shall not apply to taxable
years beginning after December 31, 2003.''.
(b) Credit To Be Part of General Business Credit.--Section
38(b) (relating to current year business credit) is amended
by striking ``plus'' at the end of paragraph (14), by
striking the period at the end of paragraph (15) and
inserting ``, plus'', and by adding at the end the following:
``(16) the employee health insurance expenses credit
determined under section 45G.''.
(c) Credit Allowed Against 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 employee health insurance credit.--
``(A) In general.--In the case of the employee health
insurance credit--
``(i) this section and section 39 shall be applied
separately with respect to the credit, and
``(ii) in applying paragraph (1) to the credit--
``(I) the amounts in subparagraphs (A) and (B) thereof
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 employee
health insurance credit).
``(B) Employee health insurance credit.--For purposes of
this subsection, the term `employee health insurance credit'
means the credit allowable under subsection (a) by reason of
section 45G(a).''.
(2) Conforming amendment.--Subclause (II) of section
38(c)(2)(A)(ii) is amended by striking ``(other'' and all
that follows through ``credit)'' and inserting ``(other than
the empowerment zone employment credit or the employee health
insurance credit)''.
(d) No Carrybacks.--Subsection (d) of section 39 (relating
to carryback and carryforward of unused credits) is amended
by adding at the end the following:
``(11) No carryback of section 45g credit before effective
date.--No portion of the unused business credit for any
taxable year which is attributable to the employee health
insurance expenses credit determined under section 45G may be
carried back to a taxable year ending before the date of the
enactment of section 45G.''.
(e) Clerical Amendment.--The table of sections for subpart
D of part IV of subchapter A of chapter 1 is amended by
adding at the end the following:
``Sec. 45G. Employee health insurance expenses.''.
(f) Employer Outreach.--The Internal Revenue Service shall,
in conjunction with the Small Business Administration,
develop materials and implement an educational program to
ensure that business personnel are aware of--
(1) the eligibility criteria for the tax credit provided
under section 45G of the Internal Revenue Code of 1986 (as
added by this section),
(2) the methods to be used in calculating such credit,
(3) the documentation needed in order to claim such credit,
and
(4) any available health plan purchasing alliances
established under title II,
so that the maximum number of eligible businesses may claim
the tax credit.
(g) Effective Date.--The amendments made by this section
shall apply to amounts paid or incurred in taxable years
beginning after December 31, 2002.
SEC. 204. BROADBAND INTERNET ACCESS TAX CREDIT.
(a) In General.--Subpart E of part IV of chapter 1
(relating to rules for computing investment credit) is
amended by inserting after section 48 the following new
section:
``SEC. 48A. BROADBAND INTERNET ACCESS CREDIT.
``(a) General Rule.--For purposes of section 46, the
broadband credit for any taxable year is the sum of--
``(1) the current generation broadband credit, plus
``(2) the next generation broadband credit.
``(b) Current Generation Broadband Credit; Next Generation
Broadband Credit.--For purposes of this section--
``(1) Current generation broadband credit.--The current
generation broadband credit for any taxable year is equal to
10 percent of the qualified expenditures incurred with
respect to qualified equipment providing current generation
broadband services to qualified subscribers and taken into
account with respect to such taxable year.
``(2) Next generation broadband credit.--The next
generation broadband credit for any taxable year is equal to
20 percent of the qualified expenditures incurred with
respect to qualified equipment providing next generation
broadband services to qualified subscribers and taken into
account with respect to such taxable year.
``(c) When Expenditures Taken Into Account.--For purposes
of this section--
``(1) In general.--Qualified expenditures with respect to
qualified equipment shall be taken into account with respect
to the first taxable year in which--
``(A) current generation broadband services are provided
through such equipment to qualified subscribers, or
``(B) next generation broadband services are provided
through such equipment to qualified subscribers.
``(2) Limitation.--
``(A) In general.--Qualified expenditures shall be taken
into account under paragraph (1) only with respect to
qualified equipment--
``(i) the original use of which commences with the
taxpayer, and
``(ii) which is placed in service,
after December 31, 2002.
``(B) Sale-leasebacks.--For purposes of subparagraph (A),
if property--
``(i) is originally placed in service after December 31,
2002, by a person, and
``(ii) sold and leased back by such person within 3 months
after the date such property was originally placed in
service,
such property shall be treated as originally placed in
service not earlier than the date on which such property is
used under the leaseback referred to in clause (ii).
``(d) Special Allocation Rules.--
``(1) Current generation broadband services.--For purposes
of determining the current generation broadband credit under
subsection (a)(1) with respect to qualified equipment through
which current generation broadband services are provided, if
the qualified equipment is capable of serving both qualified
subscribers and other subscribers, the qualified expenditures
shall be multiplied by a fraction--
``(A) the numerator of which is the sum of the number of
potential qualified subscribers within the rural areas and
the underserved areas which the equipment is capable of
serving with current generation broadband services, and
``(B) the denominator of which is the total potential
subscriber population of the area which the equipment is
capable of serving with current generation broadband
services.
``(2) Next generation broadband services.--For purposes of
determining the next generation broadband credit under
subsection (a)(2) with respect to qualified equipment through
which next generation broadband services are provided, if the
qualified equipment is capable of serving both qualified
subscribers and other subscribers, the qualified expenditures
shall be multiplied by a fraction--
``(A) the numerator of which is the sum of--
``(i) the number of potential qualified subscribers within
the rural areas and underserved areas, plus
``(ii) the number of potential qualified subscribers within
the area consisting only of residential subscribers not
described in clause (i),
which the equipment is capable of serving with next
generation broadband services, and
``(B) the denominator of which is the total potential
subscriber population of the area which the equipment is
capable of serving with next generation broadband services.
``(e) Definitions.--For purposes of this section--
``(1) Antenna.--The term `antenna' means any device used to
transmit or receive signals through the electromagnetic
spectrum, including satellite equipment.
``(2) Cable operator.--The term `cable operator' has the
meaning given such term by section 602(5) of the
Communications Act of 1934 (47 U.S.C. 522(5)).
``(3) Commercial mobile service carrier.--The term
`commercial mobile service carrier' means any person
authorized to provide commercial mobile radio service as
defined in section 20.3 of title 47, Code of Federal
Regulations.
``(4) Current generation broadband service.--The term
`current generation broadband service' means the transmission
of signals at a rate of at least 1,000,000 bits per second to
the subscriber and at least 128,000 bits per second from the
subscriber.
``(5) Multiplexing or demultiplexing.--The term
`multiplexing' means the transmission of 2 or more signals
over a single channel, and the term `demultiplexing' means
the separation of 2 or more signals previously combined by
compatible multiplexing equipment.
``(6) Next generation broadband service.--The term `next
generation broadband service' means the transmission of
signals at a rate of at least 22,000,000 bits per second to
the subscriber and at least 5,000,000 bits per second from
the subscriber.
``(7) Nonresidential subscriber.--The term `nonresidential
subscriber' means a person who purchases broadband services
which are delivered to the permanent place of business of
such person.
``(8) Open video system operator.--The term `open video
system operator' means any person authorized to provide
service under section 653 of the Communications Act of 1934
(47 U.S.C. 573).
``(9) Other wireless carrier.--The term `other wireless
carrier' means any person (other than a telecommunications
carrier, commercial mobile service carrier, cable operator,
open video system operator, or satellite carrier) providing
current generation broadband services or next generation
broadband service to subscribers through the wireless
transmission of energy through radio or light waves.
``(10) Packet switching.--The term `packet switching' means
controlling or routing the path of a digitized transmission
signal which is assembled into packets or cells.
[[Page S2526]]
``(11) Provider.--The term `provider' means, with respect
to any qualified equipment--
``(A) a cable operator,
``(B) a commercial mobile service carrier,
``(C) an open video system operator,
``(D) a satellite carrier,
``(E) a telecommunications carrier, or
``(F) any other wireless carrier,
providing current generation broadband services or next
generation broadband services to subscribers through such
qualified equipment.
``(12) Provision of services.--A provider shall be treated
as providing services to a subscriber if--
``(A) a subscriber has been passed by the provider's
equipment and can be connected to such equipment for a
standard connection fee,
``(B) the provider is physically able to deliver current
generation broadband services or next generation broadband
services, as applicable, to such subscribers without making
more than an insignificant investment with respect to any
such subscriber,
``(C) the provider has made reasonable efforts to make such
subscribers aware of the availability of such services,
``(D) such services have been purchased by one or more such
subscribers, and
``(E) such services are made available to such subscribers
at average prices comparable to those at which the provider
makes available similar services in any areas in which the
provider makes available such services.
``(13) Qualified equipment.--
``(A) In general.--The term `qualified equipment' means
equipment which provides current generation broadband
services or next generation broadband services--
``(i) at least a majority of the time during periods of
maximum demand to each subscriber who is utilizing such
services, and
``(ii) in a manner substantially the same as such services
are provided by the provider to subscribers through equipment
with respect to which no credit is allowed under subsection
(a)(1).
``(B) Only certain investment taken into account.--Except
as provided in subparagraph (C) or (D), equipment shall be
taken into account under subparagraph (A) only to the extent
it--
``(i) extends from the last point of switching to the
outside of the unit, building, dwelling, or office owned or
leased by a subscriber in the case of a telecommunications
carrier,
``(ii) extends from the customer side of the mobile
telephone switching office to a transmission/receive antenna
(including such antenna) owned or leased by a subscriber in
the case of a commercial mobile service carrier,
``(iii) extends from the customer side of the headend to
the outside of the unit, building, dwelling, or office owned
or leased by a subscriber in the case of a cable operator or
open video system operator, or
``(iv) extends from a transmission/receive antenna
(including such antenna) which transmits and receives signals
to or from multiple subscribers, to a transmission/receive
antenna (including such antenna) on the outside of the unit,
building, dwelling, or office owned or leased by a subscriber
in the case of a satellite carrier or other wireless carrier,
unless such other wireless carrier is also a
telecommunications carrier.
``(C) Packet switching equipment.--Packet switching
equipment, regardless of location, shall be taken into
account under subparagraph (A) only if it is deployed in
connection with equipment described in subparagraph (B) and
is uniquely designed to perform the function of packet
switching for current generation broadband services or next
generation broadband services, but only if such packet
switching is the last in a series of such functions performed
in the transmission of a signal to a subscriber or the first
in a series of such functions performed in the transmission
of a signal from a subscriber.
``(D) Multiplexing and demultiplexing equipment.--
Multiplexing and demultiplexing equipment shall be taken into
account under subparagraph (A) only to the extent it is
deployed in connection with equipment described in
subparagraph (B) and is uniquely designed to perform the
function of multiplexing and demultiplexing packets or cells
of data and making associated application adaptions, but only
if such multiplexing or demultiplexing equipment is located
between packet switching equipment described in subparagraph
(C) and the subscriber's premises.
``(14) Qualified expenditure.--
``(A) In general.--The term `qualified expenditure' means
any amount--
``(i) chargeable to capital account with respect to the
purchase and installation of qualified equipment (including
any upgrades thereto) for which depreciation is allowable
under section 168, and
``(ii) incurred after December 31, 2002, and before January
1, 2004.
``(B) Certain satellite expenditures excluded.--Such term
shall not include any expenditure with respect to the
launching of any satellite equipment.
``(15) Qualified subscriber.--The term `qualified
subscriber' means--
``(A) with respect to the provision of current generation
broadband services--
``(i) a nonresidential subscriber maintaining a permanent
place of business in a rural area or underserved area, or
``(ii) a residential subscriber residing in a dwelling
located in a rural area or underserved area which is not a
saturated market, and
``(B) with respect to the provision of next generation
broadband services--
``(i) a nonresidential subscriber maintaining a permanent
place of business in a rural area or underserved area, or
``(ii) a residential subscriber.
``(16) Residential subscriber.--The term `residential
subscriber' means an individual who purchases broadband
services which are delivered to such individual's dwelling.
``(17) Rural area.--The term `rural area' means any census
tract which--
``(A) is not within 10 miles of any incorporated or census
designated place containing more than 25,000 people, and
``(B) is not within a county or county equivalent which has
an overall population density of more than 500 people per
square mile of land.
``(18) Rural subscriber.--The term `rural subscriber' means
a residential subscriber residing in a dwelling located in a
rural area or nonresidential subscriber maintaining a
permanent place of business located in a rural area.
``(19) Satellite carrier.--The term `satellite carrier'
means any person using the facilities of a satellite or
satellite service licensed by the Federal Communications
Commission and operating in the Fixed-Satellite Service under
part 25 of title 47 of the Code of Federal Regulations or the
Direct Broadcast Satellite Service under part 100 of title 47
of such Code to establish and operate a channel of
communications for distribution of signals, and owning or
leasing a capacity or service on a satellite in order to
provide such distribution.
``(20) Saturated market.--The term `saturated market' means
any census tract in which, as of the date of the enactment of
this section--
``(A) current generation broadband services have been
provided by one or more providers to 85 percent or more of
the total number of potential residential subscribers
residing in dwellings located within such census tract, and
``(B) such services can be utilized--
``(i) at least a majority of the time during periods of
maximum demand by each such subscriber who is utilizing such
services, and
``(ii) in a manner substantially the same as such services
are provided by the provider to subscribers through equipment
with respect to which no credit is allowed under subsection
(a)(1).
``(21) Subscriber.--The term `subscriber' means a person
who purchases current generation broadband services or next
generation broadband services.
``(22) Telecommunications carrier.--The term
`telecommunications carrier' has the meaning given such term
by section 3(44) of the Communications Act of 1934 (47 U.S.C.
153(44)), but--
``(A) includes all members of an affiliated group of which
a telecommunications carrier is a member, and
``(B) does not include a commercial mobile service carrier.
``(23) Total potential subscriber population.--The term
`total potential subscriber population' means, with respect
to any area and based on the most recent census data, the
total number of potential residential subscribers residing in
dwellings located in such area and potential nonresidential
subscribers maintaining permanent places of business located
in such area.
``(24) Underserved area.--The term `underserved area' means
any census tract which is located in--
``(A) an empowerment zone or enterprise community
designated under section 1391,
``(B) the District of Columbia Enterprise Zone established
under section 1400,
``(C) a renewal community designated under section 1400E,
or
``(D) a low-income community designated under section 45D.
``(25) Underserved subscriber.--The term `underserved
subscriber' means a residential subscriber residing in a
dwelling located in an underserved area or nonresidential
subscriber maintaining a permanent place of business located
in an underserved area.''.
(b) Credit To Be Part of Investment Credit.--Section 46
(relating to the amount of investment credit) is amended by
striking ``and'' at the end of paragraph (2), by striking the
period at the end of paragraph (3) and inserting ``, and'',
and by adding at the end the following:
``(4) the broadband Internet access credit.''
(c) Special Rule for Mutual or Cooperative Telephone
Companies.--Section 501(c)(12)(B) (relating to list of exempt
organizations) is amended by striking ``or'' at the end of
clause (iii), by striking the period at the end of clause
(iv) and inserting ``, or'', and by adding at the end the
following new clause:
``(v) from the sale of property subject to a lease
described in section 48A(c)(2)(B), but only to the extent
such income does not in any year exceed an amount equal to
the credit for qualified expenditures which would be
determined under section 48A for such year if the mutual or
cooperative telephone company was not exempt from taxation
and was treated as the owner of the property subject to such
lease.''.
(d) Conforming Amendment.--The table of sections for
subpart E of part IV of subchapter A of chapter 1 is amended
by inserting after the item relating to section 48 the
following:
[[Page S2527]]
``Sec. 48A. Broadband internet access credit.''.
(e) Designation of Census Tracts.--
(1) In general.--The Secretary of the Treasury shall, not
later than 90 days after the date of the enactment of this
Act, designate and publish those census tracts meeting the
criteria described in paragraphs (17) and (24) of section
48A(e) of the Internal Revenue Code of 1986 (as added by this
section). In making such designations, the Secretary of the
Treasury shall consult with such other departments and
agencies as the Secretary determines appropriate.
(2) Saturated market.--
(A) In general.--For purposes of designating and publishing
those census tracts meeting the criteria described in
subsection (e)(20) of such section 48A--
(i) the Secretary of the Treasury shall prescribe not later
than 30 days after the date of the enactment of this Act the
form upon which any provider which takes the position that it
meets such criteria with respect to any census tract shall
submit a list of such census tracts (and any other
information required by the Secretary) not later than 60 days
after the date of the publication of such form, and
(ii) the Secretary of the Treasury shall publish an
aggregate list of such census tracts submitted and the
applicable providers not later than 30 days after the last
date such submissions are allowed under clause (i).
(B) No subsequent lists required.--The Secretary of the
Treasury shall not be required to publish any list of census
tracts meeting such criteria subsequent to the list described
in subparagraph (A)(ii).
(C) Penalties for submission of false information.--The
Secretary of the Treasury shall designate appropriate
penalties for knowingly submitting false information on the
form described in subparagraph (A)(i).
(f) Other Regulatory Matters.--
(1) Prohibition.--No Federal or State agency or
instrumentality shall adopt regulations or ratemaking
procedures that would have the effect of confiscating any
credit or portion thereof allowed under section 48A of the
Internal Revenue Code of 1986 (as added by this section) or
otherwise subverting the purpose of this section.
(2) Treasury regulatory authority.--It is the intent of
Congress in providing the broadband Internet access credit
under section 48A of the Internal Revenue Code of 1986 (as
added by this section) to provide incentives for the
purchase, installation, and connection of equipment and
facilities offering expanded broadband access to the Internet
for users in certain low income and rural areas of the United
States, as well as to residential users nationwide, in a
manner that maintains competitive neutrality among the
various classes of providers of broadband services.
Accordingly, the Secretary of the Treasury shall prescribe
such regulations as may be necessary or appropriate to carry
out the purposes of section 48A of such Code, including--
(A) regulations to determine how and when a taxpayer that
incurs qualified expenditures satisfies the requirements of
section 48A of such Code to provide broadband services, and
(B) regulations describing the information, records, and
data taxpayers are required to provide the Secretary to
substantiate compliance with the requirements of section 48A
of such Code.
(g) Effective Date.--The amendments made by this section
shall apply to expenditures incurred after December 31, 2002,
and before January 1, 2004.
TITLE III--STATE FISCAL RELIEF
SEC. 301. GENERAL REVENUE SHARING WITH STATES AND THEIR LOCAL
GOVERNMENTS.
(a) Appropriation.--There is authorized to be appropriated
and is appropriated to carry out this section $15,000,000,000
for fiscal year 2003.
(b) Allotments.--From the amount appropriated under
subsection (a) for fiscal year 2003, the Secretary of the
Treasury shall, as soon as practicable after the date of the
enactment of this Act, allot to each of the States as
follows, except that no State shall receive less than \1/2\
of 1 percent of such amount:
(1) State level.--$12,000,000,000 shall be allotted among
such States on the basis of the relative population of each
such State, as determined by the Secretary on the basis of
the most recent satisfactory data.
(2) Local government level.--$3,000,000,000 shall be
allotted among such States as determined under paragraph (1)
for distribution to the various units of general local
government within such States on the basis of the relative
population of each such unit within each such State, as
determined by the Secretary on the basis of the most recent
satisfactory data.
(c) Definitions.--For purposes of this section--
(1) State.--The term ``State'' means any of the several
States, the District of Columbia, and the Commonwealth of
Puerto Rico.
(2) Unit of general local government.--
(A) In general.--The term ``unit of general local
government'' means--
(i) a county, parish, township, city, or political
subdivision of a county, parish, township, or city, that is a
unit of general local government as determined by the
Secretary of Commerce for general statistical purposes; and
(ii) the District of Columbia, the Commonwealth of Puerto
Rico, and the recognized governing body of an Indian tribe or
Alaskan native village that carries out substantial
governmental duties and powers.
(B) Treatment of subsumed areas.--For purposes of
determining a unit of general local government under this
section, the rules under section 6720(c) of title 31, United
States Code, shall apply.
SEC. 302. HOMELAND SECURITY.
(a) Short Title; Purpose.--
(1) Short title.--This section may be cited as the ``First
Responders Partnership Grant Act of 2003''.
(2) Purpose.--The purpose of this section is to support
first responders to protect homeland security and prevent and
respond to acts of terrorism.
(b) Definitions.--In this section:
(1) Indian tribe.--The term ``Indian tribe'' has the same
meaning as in section 4(e) of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 450b(e)).
(2) Law enforcement officer.--The term ``law enforcement
officer'' means any officer, agent, or employee of a State,
unit of local government, public or private college or
university, or Indian tribe authorized by law or by a
government agency to engage in or supervise the prevention,
detection, or investigation of any violation of criminal law,
or authorized by law to supervise sentenced criminal
offenders.
(3) Public safety officer.--The term ``public safety
officer'' means any person serving a public or private agency
with or without compensation as a law enforcement officer, as
a firefighter, or as a member of a rescue squad or ambulance
crew.
(4) State.--The term ``State'' means each of the 50 States,
the District of Columbia, and the Commonwealth of Puerto
Rico.
(5) Unit of local government.--The term ``unit of local
government'' means a county, municipality, town, township,
village, parish, borough, or other unit of general government
below the State level.
(c) First Responders Partnership Grant Program for Public
Safety Officers.--
(1) In general.--The Secretary of Homeland Security
(referred to in this section as the ``Secretary'') is
authorized to make grants to States, units of local
government, and Indian tribes to support public safety
officers in their efforts to protect homeland security and
prevent and respond to acts of terrorism.
(2) Use of funds.--Grants awarded under this subsection
shall be--
(A) distributed directly to the State, unit of local
government, or Indian tribe; and
(B) used to fund personnel expenses, equipment, training,
and facilities to support public safety officers in their
efforts to protect homeland security and prevent and respond
to acts of terrorism.
(3) Allocation and distribution of funds.--
(A) Set-aside for indian tribes.--
(i) In general.--The Secretary shall reserve 1 percent of
the amount appropriated for grants pursuant to this Act to be
used for grants to Indian tribes.
(ii) Selection of indian tribes.--
(I) In general.--The Secretary shall award grants under
this subparagraph to Indian tribes on the basis of a
competition conducted pursuant to specific criteria.
(II) Rulemaking.--The criteria under subclause (I) shall be
contained in a regulation promulgated by the Attorney General
after notice and public comment.
(B) Set-aside for rural states.--
(i) In general.--The Secretary shall reserve 5 percent of
the amount appropriated for grants pursuant to this Act to be
used for grants to rural States.
(ii) Selection of rural states.--The Secretary shall award
grants under this subparagraph to rural States (as defined in
section 1501(b) of the Omnibus Crime Control and Safe Streets
Act of 1968 (42 U.S.C. 3796bb(b))).
(C) Minimum amount.--The Secretary shall allocate, from the
total amount appropriated for grants to States under this
subsection--
(i) not less than 0.75 percent for each State; and
(ii) not less than 0.25 percent for American Samoa, Guam,
the Northern Mariana Islands, and the United States Virgin
Islands, respectively.
(D) Allocation to metropolitan cities and urban counties.--
(i) Allocation percentage.--The balance of the total amount
appropriated for grants to States under this subsection after
allocations have been made to Indian tribes, rural States,
and the minimum amount to each State pursuant to
subparagraphs (A) through (C), shall be allocated by the
Secretary to metropolitan cities and urban counties.
(E) Computation of amount allocated to metropolitan
cities.--
(i) Computation ratios.--The Secretary shall determine the
amount to be allocated to each metropolitan city, which shall
bear the same ratio to the allocation for all metropolitan
cities as the weighted average of--
(I) the population of the metropolitan city divided by the
population of all metropolitan cities;
(II) the potential chemical security risk of the
metropolitan city divided by the potential chemical security
risk of all metropolitan cities;
(III) the proximity of the metropolitan city to the nearest
operating nuclear power plant
[[Page S2528]]
compared to the proximity of all metropolitan cities to the
nearest operating nuclear power plant to each such city;
(IV) the proximity of the metropolitan cities to the
nearest United States land or water port compared with the
proximity of all metropolitan cities to the nearest United
States land or water port to each such city;
(V) the proximity of the metropolitan city to the nearest
international border compared with the proximity of all
metropolitan cities to the nearest international border to
each such city; and
(VI) the proximity of the metropolitan city to the nearest
Disaster Medical Assistance Team (referred to in this
subsection as ``DMAT'') compared with the proximity of all
metropolitan cities to the nearest DMAT to each such city.
(ii) Clarification of computation ratios.--
(I) Relative weight of factor.--In determining the average
of the ratios under clause (i)--
(aa) the ratio involving population shall constitute 50
percent of the formula in calculating the allocation; and
(bb) the remaining factors shall be equally weighted.
(II) Potential chemical security risk.--If a metropolitan
city is within the vulnerable zone of a worst-case chemical
release (as specified in the most recent risk management
plans filed with the Environmental Protection Agency, or
another instrument developed by the Environmental Protection
Agency or the Homeland Security Department that captures the
same information for the same facilities), the ratio under
clause (i)(II) shall be 1 divided by the total number of
metropolitan cities that are within such a zone.
(III) Proximity as it pertains to nuclear security.--If a
metropolitan city is located within 50 miles of an operating
nuclear power plant (as identified by the Nuclear Regulatory
Commission), the ratio under clause (i)(III) shall be 1
divided by the total number of metropolitan cities, not to
exceed 100, which are located within 50 miles of an operating
nuclear power plant.
(IV) Proximity as it pertains to port security.--If a
metropolitan city is located within 50 miles of 1 of the 100
largest United States ports (as stated by the Department of
Transportation, Bureau of Transportation Statistics, United
States Port Report by All Land Modes), or within 50 miles of
1 of the 30 largest United States water ports by metric tons
and value (as stated by the Department of Transportation,
Maritime Administration, United States Foreign Waterborne
Transportation Statistics), the ratio under clause (i)(IV)
shall be 1 divided by the total number of metropolitan cities
that are located within 50 miles of a United States land or
water port.
(V) Proximity to international border.--If a metropolitan
city is located within 50 miles of an international border,
the ratio under clause (i)(V) shall be 1 divided by the total
number of metropolitan cities that are located within 50
miles of an international border.
(VI) Proximity to disaster medical assistance team.--If a
metropolitan city is located within 50 miles of a DMAT, as
organized by the National Disaster Medical System, the ratio
under clause (i)(VI) shall be 1 divided by the total number
of metropolitan cities that are located within 50 miles of a
DMAT.
(F) Computation of amount allocated to urban counties.--
(i) Computation ratios.--The Secretary shall determine the
amount to be allocated to each urban county, which shall bear
the same ratio to the allocation for all urban counties as
the weighted average of--
(I) the population of the urban county divided by the
population of all urban counties;
(II) the potential chemical security risk of the urban
county divided by the potential chemical security risk of all
urban counties;
(III) the proximity of the urban county to the nearest
operating nuclear power plant compared to the proximity of
all urban counties to the nearest operating nuclear power
plant to each such city;
(IV) the proximity of the urban counties to the nearest
United States land or water port compared with the proximity
of all urban counties to the nearest United States land or
water port to each such city;
(V) the proximity of the urban county to the nearest
international border compared with the proximity of all urban
counties to the nearest international border to each such
city; and
(VI) the proximity of the urban county to the nearest
Disaster Medical Assistance Team (referred to in this
subsection as ``DMAT'') compared with the proximity of all
urban counties to the nearest DMAT to each such city.
(ii) Clarification of computation ratios.--
(I) Relative weight of factor.--In determining the average
of the ratios under clause (i)--
(aa) the ratio involving population shall constitute 50
percent of the formula in calculating the allocation; and
(bb) the remaining factors shall be equally weighted.
(II) Potential chemical security risk.--If an urban county
is within the vulnerable zone of a worst-case chemical
release (as specified in the most recent risk management
plans filed with the Environmental Protection Agency, or
another instrument developed by the Environmental Protection
Agency or the Homeland Security Department that captures the
same information for the same facilities), the ratio under
clause (i)(II) shall be 1 divided by the total number of
urban counties that are within such a zone.
(III) Proximity as it pertains to nuclear security.--If an
urban county is located within 50 miles of an operating
nuclear power plant (as identified by the Nuclear Regulatory
Commission), the ratio under clause (i)(III) shall be 1
divided by the total number of urban counties, not to exceed
100, which are located within 50 miles of an operating
nuclear power plant.
(IV) Proximity as it pertains to port security.--If an
urban county is located within 50 miles of 1 of the 100
largest United States ports (as stated by the Department of
Transportation, Bureau of Transportation Statistics, United
States Port Report by All Land Modes), or within 50 miles of
1 of the 30 largest United States water ports by metric tons
and value (as stated by the Department of Transportation,
Maritime Administration, United States Foreign Waterborne
Transportation Statistics), the ratio under clause (i)(IV)
shall be 1 divided by the total number of urban counties that
are located within 50 miles of a United States land or water
port.
(V) Proximity to international border.--If an urban county
is located within 50 miles of an international border, the
ratio under clause (i)(V) shall be 1 divided by the total
number of urban counties that are located within 50 miles of
an international border.
(VI) Proximity to disaster medical assistance team.--If an
urban county is located within 50 miles of a DMAT, as
organized by the National Disaster Medical System, the ratio
under clause (i)(VI) shall be 1 divided by the total number
of urban counties that are located within 50 miles of a DMAT.
(G) Exclusions.--
(i) In general.--In computing amounts or exclusions under
subparagraph (F) with respect to any urban county, units of
general local government located in the county shall be
excluded if the populations of such units are not counted to
determine the eligibility of the urban county to receive a
grant under this subsection.
(ii) Independent cities.--
(I) In general.--In computing amounts under clause (i),
there shall be included any independent city (as defined by
the Bureau of the Census) which--
(aa) is not part of any county;
(bb) is not eligible for a grant;
(cc) is contiguous to the urban county;
(dd) has entered into cooperation agreements with the urban
county which provide that the urban county is to undertake or
to assist in the undertaking of essential community
development and housing assistance activities with respect to
such independent city; and
(ee) is not included as a part of any other unit of general
local government for purposes of this subsection.
(II) Limitation.--Any independent city that is included in
the computation under this clause (i) shall not be eligible
to receive assistance under this subsection for the fiscal
year for which such computation is used to allocate such
assistance.
(H) Inclusion.--
(i) Local government straddling county line.--In computing
amounts or exclusions under subparagraph (F) with respect to
any urban county, all of the area of any unit of local
government shall be included, which is part of, but is not
located entirely within the boundaries of, such urban county
if--
(I) the part of such unit of local government that is
within the boundaries of such urban county would otherwise be
included in computing the amount for such urban county under
this paragraph; and
(II) the part of such unit of local government that is not
within the boundaries of such urban county is not included as
a part of any other unit of local government for the purpose
of this paragraph.
(ii) Use of grant funds outside urban county.--Any amount
received under this subsection by an urban county described
under clause (i) may be used with respect to the part of such
unit of local government that is outside the boundaries of
such urban county.
(I) Population.--
(i) Effect of consolidation.--Where data are available, the
amount to be allocated to a metropolitan city that has been
formed by the consolidation of 1 or more metropolitan cities
within an urban county shall be equal to the sum of the
amounts that would have been allocated to the urban county or
cities and the balance of the consolidated government if such
consolidation had not occurred.
(ii) Limitation.--Clause (i) shall apply only to a
consolidation that--
(I) included all metropolitan cities that received grants
under this subsection for the fiscal year preceding such
consolidation and that were located within the urban county;
(II) included the entire urban county that received a grant
under this subsection for the fiscal year preceding such
consolidation; and
(III) took place on or after January 1, 2003
(iii) Growth rate.--The population growth rate of all
metropolitan cities defined in this subsection shall be based
on the population of--
(I) metropolitan cities other than consolidated governments
the grant for which is determined under this paragraph; and
[[Page S2529]]
(II) cities that were metropolitan cities before their
incorporation into consolidated governments.
(4) Maximum amount per grantee.--
(A) In general.--A qualifying State, unit of local
government, or Indian tribe may not receive more than 5
percent of the total amount appropriated for grants under
this section.
(B) Aggregate amount per State.--A State, together with the
grantees within the State may not receive more than 20
percent of the total amount appropriated for grants under
this section.
(5) Matching funds.--
(A) In general.--The portion of the costs of a program
provided by a grant under paragraph (1) may not exceed 90
percent.
(B) Waiver.--If the Secretary determines that a grantee is
experiencing fiscal hardship, the Secretary may waive, in
whole or in part, the matching requirement under subparagraph
(A).
(C) Exception.--Any funds appropriated by Congress for the
activities of any agency of an Indian tribal government or
the Bureau of Indian Affairs performing law enforcement
functions on any Indian lands may be used to provide the non-
Federal share of a matching requirement under subparagraph
(A).
(d) Applications.--
(1) In general.--To request a grant under this section, the
chief executive of a State, unit of local government, or
Indian tribe shall submit an application to the Secretary of
the Bureau of Justice Assistance in such form and containing
such information as the Secretary may reasonably require.
(2) Regulations.--Not later than 90 days after the date of
enactment of this Act, the Attorney General shall promulgate
regulations to implement this section (including the
information that must be included and the requirements that
the States, units of local government, and Indian tribes must
meet) in submitting the applications required under this
section.
(e) Authorization and Appropriations.--There are authorized
to be appropriated and are appropriated $5,000,000,000 for
fiscal year 2003 to carry out this section.
SEC. 303. FUNDING FOR EDUCATION.
(a) Basic Programs Operated by Local Educational
Agencies.--In addition to amounts appropriated under the
Departments of Labor, Health and Human Services, and
Education, and Related Agencies Appropriations Act, 2003, the
following sums are appropriated, out of any money in the
Treasury not otherwise appropriated, for the fiscal year
ending September 30, 2003, for carrying out part A of title I
of the Elementary and Secondary Education Act of 1965,
$4,250,000,000. The Secretary of Education shall reserve 1
percent of such amount for the Secretary of the Interior for
programs under part B of title I of such Act in schools
operated or funded by the Bureau of Indian Affairs.
(b) High Quality Teachers and Principals.--In addition to
amounts appropriated under the Departments of Labor, Health
and Human Services, and Education, and Related Agencies
Appropriations Act, 2003, the following sums are
appropriated, out of any money in the Treasury not otherwise
appropriated, for the fiscal year ending September 30, 2003,
for carrying out part A of title II (other than subpart 5) of
the Elementary and Secondary Education Act of 1965,
$550,000,000. The Secretary of Education shall reserve 1
percent of such amount for the Secretary of the Interior for
programs under such part A in schools operated or funded by
the Bureau of Indian Affairs.
(c) Language Instruction for Limited English Proficient and
Immigrant Students.--In addition to amounts appropriated
under the Departments of Labor, Health and Human Services,
and Education, and Related Agencies Appropriations Act, 2003,
the following sums are appropriated, out of any money in the
Treasury not otherwise appropriated, for the fiscal year
ending September 30, 2003, for carrying out title III (other
than subpart 4 of part B) of the Elementary and Secondary
Education Act of 1965, $410,000,000. The Secretary of
Education shall reserve 1 percent of such amount for payment
of entities under section 3112(a) of such Act.
(d) 21st Century Community Learning Centers.--In addition
to amounts appropriated under the Departments of Labor,
Health and Human Services, and Education, and Related
Agencies Appropriations Act, 2003, the following sums are
appropriated, out of any money in the Treasury not otherwise
appropriated, for the fiscal year ending September 30, 2003,
for carrying out part B of title IV of the Elementary and
Secondary Education Act of 1965, $500,000,000.The Secretary
of Education shall reserve 1 percent of such amount for
payments to the Bureau of Indian Affairs to enable the Bureau
to carry out the purposes of such part B.
(e) Rural Education Initiative.--In addition to amounts
appropriated under the Departments of Labor, Health and Human
Services, and Education, and Related Agencies Appropriations
Act, 2003, the following sums are appropriated, out of any
money in the Treasury not otherwise appropriated, for the
fiscal year ending September 30, 2003, for carrying out part
B of title VI of the Elementary and Secondary Education Act
of 1965, $131,000,000.
(f) Student Financial Assistance.--
(1) In general.--In addition to amounts appropriated under
the Departments of Labor, Health and Human Services, and
Education, and Related Agencies Appropriations Act, 2003, the
following sums are appropriated, out of any money in the
Treasury not otherwise appropriated, for the fiscal year
ending September 30, 2003, for carrying out subpart 1 of part
A of title IV of the Higher Education Act of 1965,
$200,000,000.
(2) Maximum pell grant.--The maximum Pell Grant for which a
student shall be eligible during award year 2003-2004 shall
be $4,100.
SEC. 304. TEMPORARY STATE FMAP RELIEF.
(a) Permitting Maintenance of Fiscal Year 2002 FMAP for
Last 3 Calendar Quarters of Fiscal Year 2003.--
Notwithstanding any other provision of law, but subject to
subsection (e), if the FMAP determined without regard to this
subsection for a State for fiscal year 2003 is less than the
FMAP as so determined for fiscal year 2002, the FMAP for the
State for fiscal year 2002 shall be substituted for the
State's FMAP for the second, third, and fourth calendar
quarters of fiscal year 2003, before the application of this
section.
(b) Permitting Maintenance of Fiscal Year 2003 FMAP for
First Calendar Quarter of Fiscal Year 2004.--Notwithstanding
any other provision of law, but subject to subsection (e), if
the FMAP determined without regard to this subsection for a
State for fiscal year 2004 is less than the FMAP as so
determined for fiscal year 2003, the FMAP for the State for
fiscal year 2003 shall be substituted for the State's FMAP
for the first calendar quarter of fiscal year 2004, before
the application of this section.
(c) General 3.76 Percentage Points Increase for Last 3
Calendar Quarters of Fiscal Year 2003 and First Calendar
Quarter of Fiscal Year 2004.--Notwithstanding any other
provision of law, but subject to subsections (e) and (f), for
each State for the second, third, and fourth calendar
quarters of fiscal year 2003 and the first calendar quarter
of fiscal year 2004, the FMAP (taking into account the
application of subsections (a) and (b)) shall be increased by
3.76 percentage points.
(d) Increase in Cap on Medicaid Payments To Territories.--
Notwithstanding any other provision of law, but subject to
subsection (f), with respect to the second, third, and fourth
calendar quarters of fiscal year 2003 and the first calendar
quarter of fiscal year 2004, the amounts otherwise determined
for Puerto Rico, the Virgin Islands, Guam, the Northern
Mariana Islands, and American Samoa under subsections (f) and
(g) of section 1108 of the Social Security Act (42 U.S.C.
1308) shall each be increased by an amount equal to 7.52
percent 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);
(2) payments under title IV or XXI of such Act (42 U.S.C.
601 et seq. and 1397aa et seq.); or
(3) the percentage described in the third sentence of
section 1905(b) of the Social Security Act (42 U.S.C.
1396d(b)) (relating to amounts expended as medical assistance
for services received through an Indian Health Service
facility whether operated by the Indian Health Service or by
an Indian tribe or tribal organization (as defined in section
4 of the Indian Health Care Improvement Act)).
(f) State Eligibility.--
(1) In general.--Subject to paragraph (2), a State is
eligible for an increase in its FMAP under subsection (c) or
an increase in a cap amount under subsection (d) only if the
eligibility under its State plan under title XIX of the
Social Security Act (including any waiver under such title or
under section 1115 of such Act (42 U.S.C. 1315)) is no more
restrictive than the eligibility under such plan (or waiver)
as in effect on July 1, 2003.
(2) State reinstatement of eligibility permitted.--A State
that has restricted eligibility under its State plan under
title XIX of the Social Security Act (including any waiver
under such title or under section 1115 of such Act (42 U.S.C.
1315)) after July 1, 2003, but prior to the date of enactment
of this Act is eligible for an increase in its FMAP under
subsection (c) or an increase in a cap amount under
subsection (d) in the first calendar quarter (and any
subsequent calendar quarters) in which the State has
reinstated eligibility that is no more restrictive than the
eligibility under such plan (or waiver) as in effect on July
1, 2003.
(3) Rule of construction.--Nothing in paragraph (1) or (2)
shall be construed as affecting a State's flexibility with
respect to benefits offered under the State medicaid program
under title XIX of the Social Security Act (42 U.S.C. 1396 et
seq.) (including any waiver under such title or under section
1115 of such Act (42 U.S.C. 1315)).
(g) Definitions.--In this section:
(1) FMAP.--The term ``FMAP'' means the Federal medical
assistance percentage, as defined in section 1905(b) of the
Social Security Act (42 U.S.C. 1396d(b)).
(2) State.--The term ``State'' has the meaning given such
term for purposes of title XIX of the Social Security Act (42
U.S.C. 1396 et seq.).
(h) Repeal.--Effective as of January 1, 2004, this section
is repealed.
SEC. 305. FUNDING FOR TRANSPORTATION INFRASTRUCTURE.
(a) Highway Programs.--
(1) Appropriations.--Subject to subsection (d), in addition
to amounts appropriated
[[Page S2530]]
under the Department of Transportation and Related Agencies
Appropriations Act, 2003, there are appropriated to the
Secretary of Transportation, out of any money in the Treasury
not otherwise appropriated, for the fiscal year ending
September 30, 2003--
(A) $2,480,000,000--
(i) to be apportioned among the States in accordance with
the formula specified in section 104(b)(3) of title 23,
United States Code; and
(ii) to be used for projects eligible under section 133 of
that title, without regard to section 133(d) of that title;
(B) $80,000,000, to be used by the Secretary in the same
manner as funds are used under section 118(c) of that title,
except that section 118(c)(2)(A) of that title shall not
apply to funds appropriated under this subparagraph;
(C) $80,000,000, to be used by the Secretary in the same
manner as funds are used under section 144(g)(2) of that
title;
(D) $80,000,000, to be used by the Secretary in the same
manner as funds are used under subsections (a) through (c)
and (e) of section 202 of that title;
(E) $80,000,000, to be used by the Secretary in the same
manner as funds are used under section 202(d) of that title;
and
(F) $80,000,000, to be used by the Secretary in the same
manner as funds are used under sections 1118 and 1119 of the
Transportation Equity Act for the 21st Century (23 U.S.C. 101
note; 112 Stat. 161).
(2) Redistribution of unused obligation authority.--Funds
made available under paragraph (1)(A) that are not obligated
within 180 days after the date of enactment of this Act shall
be redistributed in the manner described in section 1102(d)
of the Transportation Equity Act for the 21st Century (23
U.S.C. 104 note; 112 Stat. 117).
(b) Transit Program.--
(1) Appropriations.--Subject to subsection (d)(1), in
addition to amounts appropriated under the Department of
Transportation and Related Agencies Appropriations Act, 2003,
there are appropriated to the Secretary of Transportation,
out of any money in the Treasury not otherwise appropriated,
for the fiscal year ending September 30, 2003, $720,000,000--
(A) to be distributed between and used for projects
eligible under sections 5307 and 5311 of title 49, United
States Code, in the same ratio as funds were distributed
under section 5338 of that title for fiscal years 1998
through 2003; and
(B) to be apportioned among the States in accordance with
the formulas specified in sections 5307 and 5311 of title 49,
United States Code.
(2) Redistribution of unused obligation authority.--Funds
made available under paragraph (1) that are not obligated
within 180 days after the date of enactment of this Act shall
be redistributed among the States giving priority to those
States having large unobligated balances of funds apportioned
under sections 5307 and 5311 of title 49, United States Code.
(c) Airport Programs.--Subject to subsection (d), in
addition to any amounts appropriated for fiscal year 2003,
there is appropriated $400,000,000 out of any money in the
Treasury not otherwise appropriated for the fiscal year
ending September 30, 2003, to the Secretary of Transportation
as discretionary funds to be used by the Secretary for grants
to make safety and security improvements at airports in the
same manner as funds are used under subtitle VII of title 49,
United States Code, except that none of the funds may be used
to expedite a letter of intent in effect on the date of
enactment of this Act.
(d) General Provisions.--Notwithstanding any other
provision of law--
(1) the Federal share of the cost of a project carried out
with funds made available under this section shall be 100
percent; and
(2) funds made available under subparagraphs (B) through
(F) of subsection (a)(1) and under subsection (c) shall be--
(A) obligated not later than 180 days after the date of
enactment of this Act; and
(B) expended as expeditiously as practicable.
TITLE IV--UNEMPLOYMENT ASSISTANCE
Subtitle A--Additional Weeks of Temporary Extended Unemployment
Compensation
SEC. 401. ENTITLEMENT TO ADDITIONAL WEEKS OF TEMPORARY
EXTENDED UNEMPLOYMENT COMPENSATION.
(a) Entitlement to Additional Weeks.--
(1) In general.--Paragraph (1) of section 203(b) of the
Temporary Extended Unemployment Compensation Act of 2002
(Public Law 107-147; 116 Stat. 28) is amended--
(A) in subparagraph (A), by striking ``50 percent'' and
inserting ``100 percent''; and
(B) in subparagraph (B), by striking ``13 times'' and
inserting ``26 times''.
(2) Repeal of restriction on augmentation during
transitional period.--Section 208(b) of the Temporary
Extended Unemployment Compensation Act of 2002 (Public Law
107-147), as amended by Public Law 108-1 (117 Stat. 3), is
amended--
(A) in paragraph (1)--
(i) by striking ``paragraphs (2) and (3)'' and inserting
``paragraph (2)''; and
(ii) by inserting before the period at the end the
following: ``, including such compensation by reason of
amounts deposited in such account after such date pursuant to
the application of subsection (c) of such section'';
(B) by striking paragraph (2); and
(C) by redesignating paragraph (3) as paragraph (2).
(3) Extension of transition limitation.--Section 208(b)(2)
of the Temporary Extended Unemployment Compensation Act of
2002 (Public Law 107-147), as amended by Public Law 108-1
(117 Stat. 3) and as redesignated by paragraph (2), is
amended by striking ``August 30, 2003'' and inserting
``December 31, 2003''.
(4) Conforming amendment for augmented benefits.--Section
203(c)(1) of the Temporary Extended Unemployment Compensation
Act of 2002 (Public Law 107-147; 116 Stat. 28) is amended by
striking ``the amount originally established in such account
(as determined under subsection (b)(1))'' and inserting ``7
times the individual's average weekly benefit amount for the
benefit year''.
(b) Effective Date and Application.--
(1) In general.--The amendments made by subsection (a)
shall apply with respect to weeks of unemployment beginning
on or after the date of enactment this Act.
(2) TEUC-X amounts deposited in account prior to date of
enactment deemed to be the additional teuc amounts provided
by this section.--In applying the amendments made by
subsection (a) under the Temporary Extended Unemployment
Compensation Act of 2002 (Public Law 107-147; 116 Stat. 26),
the Secretary of Labor shall deem any amounts deposited into
an individual's temporary extended unemployment compensation
account by reason of section 203(c) of such Act (commonly
known as ``TEUC-X amounts'') prior to the date of enactment
of this Act to be amounts deposited in such account by reason
of section 203(b) of such Act, as amended by subsection (a)
(commonly known as ``TEUC amounts'').
(3) Application to exhaustees and current beneficiaries.--
(A) Exhaustees.--In the case of any individual--
(i) to whom any temporary extended unemployment
compensation was payable for any week beginning before the
date of enactment of this Act; and
(ii) who exhausted such individual's rights to such
compensation (by reason of the payment of all amounts in such
individual's temporary extended unemployment compensation
account) before such date,
such individual's eligibility for any additional weeks of
temporary extended unemployment compensation by reason of the
amendments made by subsection (a) shall apply with respect to
weeks of unemployment beginning on or after the date of
enactment of this Act.
(B) Current beneficiaries.--In the case of any individual--
(i) to whom any temporary extended unemployment
compensation was payable for any week beginning before the
date of enactment of this Act; and
(ii) as to whom the condition described in subparagraph
(A)(ii) does not apply,
such individual shall be eligible for temporary extended
unemployment compensation (in accordance with the provisions
of the Temporary Extended Unemployment Compensation Act of
2002, as amended by subsection (a)) with respect to weeks of
unemployment beginning on or after the date of enactment of
this Act.
(4) Redetermination of eligibility for augmented amounts
for individuals for whom such a determination was made prior
to the date of enactment.--Any determination of whether the
individual's State is in an extended benefit period under
section 203(c) of the Temporary Extended Unemployment
Compensation Act of 2002 (Public Law 107-147; 116 Stat. 28)
made prior to the date of enactment of this Act shall be
disregarded and the determination under such section shall be
made as follows:
(A) Individuals who exhausted 13 teuc and 13 teux-x weeks
prior to the date of enactment.--In the case of an individual
who, prior to the date of enactment of this Act, received 26
times the individual's average weekly benefit amount through
an account established under section 203 of the Temporary
Extended Unemployment Compensation Act of 2002 (Public Law
107-147; 116 Stat. 28) (by reason of augmentation under
subsection (c) of such section), the determination shall be
made as of the date of enactment of this Act.
(B) All other individuals.--In the case of an individual
who is not described in subparagraph (A), the determination
shall be made at the time that the individual's account
established under such section 203, as amended by subsection
(a), is exhausted.
Subtitle B--Temporary Enhanced Regular Unemployment Compensation
SEC. 411. 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.--
(1) In general.--Subject to paragraph (3), any agreement
under subsection (a) shall provide that the State agency of
the State, in addition to any amounts of regular compensation
to which an individual may be entitled under the State law,
shall make payments of temporary enhanced regular
unemployment compensation to an individual in an amount and
to the extent that the individual would be entitled to
regular compensation if the State law were applied with the
modifications described in paragraph (2).
[[Page S2531]]
(2) Modifications described.--The modifications described
in this paragraph are as follows:
(A) In the case of an individual who is not eligible for
regular compensation under the State law because of the use
of a definition of base period that does not count wages
earned in the most recently completed calendar quarter, then
eligibility for compensation shall be determined by applying
a base period ending at the close of the most recently
completed calendar quarter.
(B) In the case of an individual who is not eligible for
regular compensation under the State law because such
individual does not meet requirements relating to
availability for work, active search for work, or refusal to
accept work, because such individual is seeking, or is
available for, less than full-time work, then compensation
shall not be denied by such State to an otherwise eligible
individual who seeks less than full-time work or fails to
accept full-time work.
(3) Reduction of amounts of regular compensation available
for individuals who sought part-time work or failed to accept
full-time work.--Any agreement under subsection (a) shall
provide that the State agency of the State shall reduce the
amount of regular compensation available to an individual who
has received temporary enhanced regular unemployment
compensation as a result of the application of the
modification described in paragraph (2)(B) by the amount of
such temporary enhanced regular unemployment compensation.
(c) Coordination Rule.--The modifications described in
subsection (b)(2) shall also apply in determining the amount
of benefits payable under any Federal law to the extent that
those benefits are determined by reference to regular
compensation payable under the State law of the State
involved.
SEC. 412. PAYMENTS TO STATES HAVING AGREEMENTS UNDER THIS
TITLE.
(a) General Rule.--There shall be paid to each State which
has entered into an agreement under this title an amount
equal to--
(1) 100 percent of any temporary enhanced regular
unemployment compensation; and
(2) 100 percent of any regular compensation which is paid
to individuals by such State by reason of the fact that its
State law contains provisions comparable to the modifications
described in subparagraphs (A) and (B) of section 411(b)(2),
but only to the extent that those amounts would, if such
amounts were instead payable by virtue of the State law's
being deemed to be so modified pursuant to section 411(b)(1),
have been reimbursable under paragraph (1).
(b) Determination of Amount.--Sums under subsection (a)
payable to any State by reason of such State having an
agreement under this title shall be payable, either in
advance or by way of reimbursement (as may be determined by
the Secretary), in such amounts as the Secretary estimates
the State will be entitled to receive under this title for
each calendar month, reduced or increased, as the case may
be, by any amount by which the Secretary finds that the
Secretary's estimates for any prior calendar month were
greater or less than the amounts which should have been paid
to the State. Such estimates may be made on the basis of such
statistical, sampling, or other method as may be agreed upon
by the Secretary and the State agency of the State involved.
SEC. 413. 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 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 which are payable to such State under this
title. The Secretary of the Treasury, prior to audit or
settlement by the General Accounting Office, shall make
payments to the State in accordance with such certification
by transfers from the extended unemployment compensation
account (as so established), or, to the extent that there are
insufficient funds in that account, from the Federal
unemployment account, 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 of the
Unemployment Trust Fund (as established by section 901(a) of
the Social Security Act (42 U.S.C. 1101(a))) $500,000,000 to
reimburse States for the costs of the administration of
agreements under this title (including any improvements in
technology in connection therewith) and to provide
reemployment services to unemployment compensation claimants
in States having agreements under this title. Each State's
share of the amount appropriated by the preceding sentence
shall be determined by the Secretary according to the factors
described in section 302(a) of the Social Security Act (42
U.S.C. 502(a)) and certified by the Secretary to the
Secretary of the Treasury.
(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. 414. DEFINITIONS.
For purposes of this title, the terms ``compensation'',
``base period'', ``regular compensation'', ``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.
SEC. 415. APPLICABILITY.
(a) In General.--Except as provided in subsection (b), 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 July 1, 2004.
(b) Phase-Out of TERUC.--
(1) In general.--Subject to paragraph (2), in the case of
an individual who has established eligibility for temporary
enhanced regular unemployment compensation, but who has not
exhausted all rights to such compensation, as of the last day
of the week ending before July 1, 2004, such compensation
shall continue to be payable to such individual for any week
beginning after such date for which the individual meets the
eligibility requirements of this title.
(2) Limitation.--No compensation shall be payable by reason
of paragraph (1) for any week beginning after December 31,
2004.
SEC. 416. COORDINATION WITH THE TEMPORARY EXTENDED
UNEMPLOYMENT COMPENSATION ACT OF 2002.
(a) In General.--The Temporary Extended Unemployment
Compensation Act of 2002 (Public Law 107-147; 116 Stat. 30)
is amended--
(1) in section 202(b)(1), by inserting ``, and who have
exhausted all rights to temporary enhanced regular
unemployment compensation'' before the semicolon at the end;
(2) in section 202(b)(2), by inserting ``, temporary
enhanced regular unemployment compensation,'' after ``regular
compensation'';
(3) in section 202(c), by inserting ``(or, as the case may
be, such individual's rights to temporary enhanced regular
unemployment compensation)'' after ``State law'' in the
matter preceding paragraph (1);
(4) in section 202(c)(1), by inserting ``and no payments of
temporary enhanced regular unemployment compensation can be
made'' after ``under such law'';
(5) in section 202(d)(1), by inserting ``or the amount of
any temporary enhanced regular unemployment compensation
(including dependents' allowances) payable to such individual
for such a week,'' after ``total unemployment'';
(6) in section 202(d)(2)(A), by inserting ``, or, as the
case may be, to temporary enhanced regular unemployment
compensation,'' after ``State law'';
(7) in section 203(b)(1)(A), by inserting ``plus the amount
of any temporary enhanced regular unemployment compensation
payable to such individual for such week,'' after ``under
such law''; and
(8) in section 203(b)(2), by inserting ``or the amount of
any temporary enhanced regular unemployment compensation
payable to such individual for such week,'' after ``total
unemployment''.
(b) Amount of TEUC Offset by Amount of TERUC.--Section
203(b)(1) of the Temporary Extended Unemployment Compensation
Act of 2002 (Public Law 107-147; 116 Stat. 28) is amended--
(1) in subparagraph (B), by striking the period at the end
and inserting a comma; and
(2) by adding at the end the following:
``minus the number of weeks in which the individual was
entitled to temporary enhanced regular unemployment
compensation as a result of the application of the
modification described in section 411(b)(2)(A) of the
Economic Recovery Act of 2003 (relating to the alternative
base period) multiplied by the individual's average weekly
benefit amount for the benefit year.''.
(c) Temporary Enhanced Regular Unemployment Compensation
Defined.--Section 207 of the Temporary Extended Unemployment
Compensation Act of 2002 (Public Law 107-147; 116 Stat. 30)
is amended to read as follows:
``SEC. 207. DEFINITIONS.
``In this title:
``(1) General definitions.--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).
``(2) Temporary enhanced regular unemployment
compensation.--The term `temporary enhanced regular
unemployment compensation' means temporary enhanced regular
unemployment benefits payable under title IV of the Economic
Recovery Act of 2003.''.
[[Page S2532]]
TITLE V--LONG-TERM FISCAL DISCIPLINE
Subtitle A--Provisions Designed To Curtail Tax Shelters
SEC. 501. CLARIFICATION OF ECONOMIC SUBSTANCE DOCTRINE.
(a) In General.--Section 7701 is amended by redesignating
subsection (m) as subsection (n) and by inserting after
subsection (l) the following new subsection:
``(m) Clarification of Economic Substance Doctrine; Etc.--
``(1) General rules.--
``(A) In general.--In applying the economic substance
doctrine, the determination of whether a transaction has
economic substance shall be made as provided in this
paragraph.
``(B) Definition of economic substance.--For purposes of
subparagraph (A)--
``(i) In general.--A transaction has economic substance
only if--
``(I) the transaction changes in a meaningful way (apart
from Federal tax effects and, if there is any Federal tax
effects, also apart from any foreign, State, or local tax
effects) the taxpayer's economic position, and
``(II) the taxpayer has a substantial nontax purpose for
entering into such transaction and the transaction is a
reasonable means of accomplishing such purpose.
``(ii) Special rule where taxpayer relies on profit
potential.--A transaction shall not be treated as having
economic substance by reason of having a potential for profit
unless--
``(I) the present value of the reasonably expected pre-tax
profit from the transaction is substantial in relation to the
present value of the expected net tax benefits that would be
allowed if the transaction were respected, and
``(II) the reasonably expected pre-tax profit from the
transaction exceeds a risk-free rate of return.
``(C) Treatment of fees and foreign taxes.--Fees and other
transaction expenses and foreign taxes shall be taken into
account as expenses in determining pre-tax profit under
subparagraph (B)(ii).
``(2) Special rules for transactions with tax-indifferent
parties.--
``(A) Special rules for financing transactions.--The form
of a transaction which is in substance the borrowing of money
or the acquisition of financial capital directly or
indirectly from a tax-indifferent party shall not be
respected if the present value of the deductions to be
claimed with respect to the transaction is substantially in
excess of the present value of the anticipated economic
returns of the person lending the money or providing the
financial capital. A public offering shall be treated as a
borrowing, or an acquisition of financial capital, from a
tax-indifferent party if it is reasonably expected that at
least 50 percent of the offering will be placed with tax-
indifferent parties.
``(B) Artificial income shifting and basis adjustments.--
The form of a transaction with a tax-indifferent party shall
not be respected if--
``(i) it results in an allocation of income or gain to the
tax-indifferent party in excess of such party's economic
income or gain, or
``(ii) it results in a basis adjustment or shifting of
basis on account of overstating the income or gain of the
tax-indifferent party.
``(3) Definitions and special rules.--For purposes of this
subsection--
``(A) Economic substance doctrine.--The term `economic
substance doctrine' means the common law doctrine under which
tax benefits under subtitle A with respect to a transaction
are not allowable if the transaction does not have economic
substance or lacks a business purpose.
``(B) Tax-indifferent party.--The term `tax-indifferent
party' means any person or entity not subject to tax imposed
by subtitle A. A person shall be treated as a tax-indifferent
party with respect to a transaction if the items taken into
account with respect to the transaction have no substantial
impact on such person's liability under subtitle A.
``(C) Exception for personal transactions of individuals.--
In the case of an individual, this subsection shall apply
only to transactions entered into in connection with a trade
or business or an activity engaged in for the production of
income.
``(D) Treatment of lessors.--In applying subclause (I) of
paragraph (1)(B)(ii) to the lessor of tangible property
subject to a lease, the expected net tax benefits shall not
include the benefits of depreciation, or any tax credit, with
respect to the leased property and subclause (II) of
paragraph (1)(B)(ii) shall be disregarded in determining
whether any of such benefits are allowable.
``(4) Other common law doctrines not affected.--Except as
specifically provided in this subsection, the provisions of
this subsection shall not be construed as altering or
supplanting any other rule of law, and the requirements of
this subsection shall be construed as being in addition to
any such other rule of law.
``(5) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
the purposes of this subsection. Such regulations may include
exemptions from the application of this subsection.''
(b) Effective Date.--The amendments made by this section
shall apply to transactions entered into after February 15,
2004.
SEC. 502. PENALTY FOR FAILING TO DISCLOSE REPORTABLE
TRANSACTION.
(a) In General.--Part I of subchapter B of chapter 68
(relating to assessable penalties) is amended by inserting
after section 6707 the following new section:
``SEC. 6707A. PENALTY FOR FAILURE TO INCLUDE REPORTABLE
TRANSACTION INFORMATION WITH RETURN OR
STATEMENT.
``(a) Imposition of Penalty.--Any person who fails to
include on any return or statement any information with
respect to a reportable transaction which is required under
section 6011 to be included with such return or statement
shall pay a penalty in the amount determined under subsection
(b).
``(b) Amount of Penalty.--
``(1) In general.--Except as provided in paragraphs (2) and
(3), the amount of the penalty under subsection (a) shall be
$50,000.
``(2) Listed transaction.--The amount of the penalty under
subsection (a) with respect to a listed transaction shall be
$100,000.
``(3) Increase in penalty for large entities and high net
worth individuals.--
``(A) In general.--In the case of a failure under
subsection (a) by--
``(i) a large entity, or
``(ii) a high net worth individual,
the penalty under paragraph (1) or (2) shall be twice the
amount determined without regard to this paragraph.
``(B) Large entity.--For purposes of subparagraph (A), the
term `large entity' means, with respect to any taxable year,
a person (other than a natural person) with gross receipts in
excess of $10,000,000 for the taxable year in which the
reportable transaction occurs or the preceding taxable year.
Rules similar to the rules of paragraph (2) and subparagraphs
(B), (C), and (D) of paragraph (3) of section 448(c) shall
apply for purposes of this subparagraph.
``(C) High net worth individual.--The term `high net worth
individual' means, with respect to a transaction, a natural
person whose net worth exceeds $2,000,000 immediately before
the transaction.
``(c) Definitions.--For purposes of this section--
``(1) Reportable transaction.--The term `reportable
transaction' means any transaction with respect to which
information is required to be included with a return or
statement because, as determined under regulations prescribed
under section 6011, such transaction is of a type which the
Secretary determines as having a potential for tax avoidance
or evasion.
``(2) Listed transaction.--Except as provided in
regulations, the term `listed transaction' means a reportable
transaction which is the same as, or substantially similar
to, a transaction specifically identified by the Secretary as
a tax avoidance transaction for purposes of section 6011.
``(d) Authority To Rescind Penalty.--
``(1) In general.--The Commissioner of Internal Revenue may
rescind all or any portion of any penalty imposed by this
section with respect to any violation if--
``(A) the violation is with respect to a reportable
transaction other than a listed transaction,
``(B) the person on whom the penalty is imposed has a
history of complying with the requirements of this title,
``(C) it is shown that the violation is due to an
unintentional mistake of fact;
``(D) imposing the penalty would be against equity and good
conscience, and
``(E) rescinding the penalty would promote compliance with
the requirements of this title and effective tax
administration.
``(2) Discretion.--The exercise of authority under
paragraph (1) shall be at the sole discretion of the
Commissioner and may be delegated only to the head of the
Office of Tax Shelter Analysis. The Commissioner, in the
Commissioner's sole discretion, may establish a procedure to
determine if a penalty should be referred to the Commissioner
or the head of such Office for a determination under
paragraph (1).
``(3) No appeal.--Notwithstanding any other provision of
law, any determination under this subsection may not be
reviewed in any administrative or judicial proceeding.
``(4) Records.--If a penalty is rescinded under paragraph
(1), the Commissioner shall place in the file in the Office
of the Commissioner the opinion of the Commissioner or the
head of the Office of Tax Shelter Analysis with respect to
the determination, including--
``(A) the facts and circumstances of the transaction,
``(B) the reasons for the rescission, and
``(C) the amount of the penalty rescinded.
``(5) Report.--The Commissioner shall each year report to
the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate--
``(A) a summary of the total number and aggregate amount of
penalties imposed, and rescinded, under this section, and
``(B) a description of each penalty rescinded under this
subsection and the reasons therefor.
``(e) Penalty Reported to SEC.--In the case of a person--
``(1) which is required to file periodic reports under
section 13 or 15(d) of the Securities Exchange Act of 1934 or
is required to be consolidated with another person for
purposes of such reports, and
``(2) which--
``(A) is required to pay a penalty under this section with
respect to a listed transaction,
``(B) is required to pay a penalty under section 6662A with
respect to any reportable transaction at a rate prescribed
under section 6662A(c), or
[[Page S2533]]
``(C) is required to pay a penalty under section 6662B with
respect to any noneconomic substance transaction,
the requirement to pay such penalty shall be disclosed in
such reports filed by such person for such periods as the
Secretary shall specify. Failure to make a disclosure in
accordance with the preceding sentence shall be treated as a
failure to which the penalty under subsection (b)(2) applies.
``(f) Coordination With Other Penalties.--The penalty
imposed by this section is in addition to any penalty imposed
under this title.''
(b) Conforming Amendment.--The table of sections for part I
of subchapter B of chapter 68 is amended by inserting after
the item relating to section 6707 the following:
``Sec. 6707A. Penalty for failure to include reportable transaction
information with return or statement.''
(c) Effective Date.--The amendments made by this section
shall apply to returns and statements the due date for which
is after the date of the enactment of this Act.
SEC. 503. ACCURACY-RELATED PENALTY FOR LISTED TRANSACTIONS
AND OTHER REPORTABLE TRANSACTIONS HAVING A
SIGNIFICANT TAX AVOIDANCE PURPOSE.
(a) In General.--Subchapter A of chapter 68 is amended by
inserting after section 6662 the following new section:
``SEC. 6662A. IMPOSITION OF ACCURACY-RELATED PENALTY ON
UNDERSTATEMENTS WITH RESPECT TO REPORTABLE
TRANSACTIONS.
``(a) Imposition of Penalty.--If a taxpayer has a
reportable transaction understatement for any taxable year,
there shall be added to the tax an amount equal to 20 percent
of the amount of such understatement.
``(b) Reportable Transaction Understatement.--For purposes
of this section--
``(1) In general.--The term `reportable transaction
understatement' means the sum of--
``(A) the product of--
``(i) the amount of the increase (if any) in taxable income
which results from a difference between the proper tax
treatment of an item to which this section applies and the
taxpayer's treatment of such item (as shown on the taxpayer's
return of tax), and
``(ii) the highest rate of tax imposed by section 1
(section 11 in the case of a taxpayer which is a
corporation), and
``(B) the amount of the decrease (if any) in the aggregate
amount of credits determined under subtitle A which results
from a difference between the taxpayer's treatment of an item
to which this section applies (as shown on the taxpayer's
return of tax) and the proper tax treatment of such item.
For purposes of subparagraph (A), any reduction of the excess
of deductions allowed for the taxable year over gross income
for such year, and any reduction in the amount of capital
losses which would (without regard to section 1211) be
allowed for such year, shall be treated as an increase in
taxable income.
``(2) Items to which section applies.--This section shall
apply to any item which is attributable to--
``(A) any listed transaction, and
``(B) any reportable transaction (other than a listed
transaction) if a significant purpose of such transaction is
the avoidance or evasion of Federal income tax.
``(c) Higher Penalty for Nondisclosed Listed and Other
Avoidance Transactions.--
``(1) In general.--Subsection (a) shall be applied by
substituting `30 percent' for `20 percent' with respect to
the portion of any reportable transaction understatement with
respect to which the requirement of section 6664(d)(2)(A) is
not met.
``(2) Rules applicable to compromise of penalty.--
``(A) In general.--If the 1st letter of proposed deficiency
which allows the taxpayer an opportunity for administrative
review in the Internal Revenue Service Office of Appeals has
been sent with respect to a penalty to which paragraph (1)
applies, only the Commissioner of Internal Revenue may
compromise all or any portion of such penalty.
``(B) Applicable rules.--The rules of paragraphs (2), (3),
(4), and (5) of section 6707A(d) shall apply for purposes of
subparagraph (A).
``(d) Definitions of Reportable and Listed Transactions.--
For purposes of this section, the terms `reportable
transaction' and `listed transaction' have the respective
meanings given to such terms by section 6707A(c).
``(e) Special Rules.--
``(1) Coordination with penalties, etc., on other
understatements.--In the case of an understatement (as
defined in section 6662(d)(2))--
``(A) the amount of such understatement (determined without
regard to this paragraph) shall be increased by the aggregate
amount of reportable transaction understatements and
noneconomic substance transaction understatements for
purposes of determining whether such understatement is a
substantial understatement under section 6662(d)(1), and
``(B) the addition to tax under section 6662(a) shall apply
only to the excess of the amount of the substantial
understatement (if any) after the application of subparagraph
(A) over the aggregate amount of reportable transaction
understatements and noneconomic substance transaction
understatements.
``(2) Coordination with other penalties.--
``(A) Application of fraud penalty.--References to an
underpayment in section 6663 shall be treated as including
references to a reportable transaction understatement and a
noneconomic substance transaction understatement.
``(B) No double penalty.--This section shall not apply to
any portion of an understatement on which a penalty is
imposed under section 6662B or 6663.
``(3) Special rule for amended returns.--Except as provided
in regulations, in no event shall any tax treatment included
with an amendment or supplement to a return of tax be taken
into account in determining the amount of any reportable
transaction understatement or noneconomic substance
transaction understatement if the amendment or supplement is
filed after the earlier of the date the taxpayer is first
contacted by the Secretary regarding the examination of the
return or such other date as is specified by the Secretary.
``(4) Noneconomic substance transaction understatement.--
For purposes of this subsection, the term `noneconomic
substance transaction understatement' has the meaning given
such term by section 6662B(c).
``(5) Cross reference.--
``For reporting of section 6662A(c) penalty to the Securities and
Exchange Commission, see section 6707A(e).''
(b) Determination of Other Understatements.--Subparagraph
(A) of section 6662(d)(2) is amended by adding at the end the
following flush sentence:
``The excess under the preceding sentence shall be determined
without regard to items to which section 6662A applies and
without regard to items with respect to which a penalty is
imposed by section 6662B.''
(c) Reasonable Cause Exception.--
(1) In general.--Section 6664 is amended by adding at the
end the following new subsection:
``(d) Reasonable Cause Exception for Reportable Transaction
Understatements.--
``(1) In general.--No penalty shall be imposed under
section 6662A with respect to any portion of a reportable
transaction understatement if it is shown that there was a
reasonable cause for such portion and that the taxpayer acted
in good faith with respect to such portion.
``(2) Special rules.--Paragraph (1) shall not apply to any
reportable transaction understatement unless--
``(A) the relevant facts affecting the tax treatment of the
item are adequately disclosed in accordance with the
regulations prescribed under section 6011,
``(B) there is or was substantial authority for such
treatment, and
``(C) the taxpayer reasonably believed that such treatment
was more likely than not the proper treatment.
A taxpayer failing to adequately disclose in accordance with
section 6011 shall be treated as meeting the requirements of
subparagraph (A) if the penalty for such failure was
rescinded under section 6707A(d).
``(3) Rules relating to reasonable belief.--For purposes of
paragraph (2)(C)--
``(A) In general.--A taxpayer shall be treated as having a
reasonable belief with respect to the tax treatment of an
item only if such belief--
``(i) is based on the facts and law that exist at the time
the return of tax which includes such tax treatment is filed,
and
``(ii) relates solely to the taxpayer's chances of success
on the merits of such treatment and does not take into
account the possibility that a return will not be audited,
such treatment will not be raised on audit, or such treatment
will be resolved through settlement if it is raised.
``(B) Certain opinions may not be relied upon.--
``(i) In general.--An opinion of a tax advisor may not be
relied upon to establish the reasonable belief of a taxpayer
if--
``(I) the tax advisor is described in clause (ii), or
``(II) the opinion is described in clause (iii).
``(ii) Disqualified tax advisors.--A tax advisor is
described in this clause if the tax advisor--
``(I) is a material advisor (within the meaning of section
6111(b)(1)) who participates in the organization, management,
promotion, or sale of the transaction or who is related
(within the meaning of section 267(b) or 707(b)(1)) to any
person who so participates,
``(II) is compensated directly or indirectly by a material
advisor with respect to the transaction,
``(III) has a fee arrangement with respect to the
transaction which is contingent on all or part of the
intended tax benefits from the transaction being sustained,
or
``(IV) as determined under regulations prescribed by the
Secretary, has a continuing financial interest with respect
to the transaction.
``(iii) Disqualified opinions.--For purposes of clause (i),
an opinion is disqualified if the opinion--
``(I) is based on unreasonable factual or legal assumptions
(including assumptions as to future events),
``(II) unreasonably relies on representations, statements,
findings, or agreements of the taxpayer or any other person,
``(III) does not identify and consider all relevant facts,
or
``(IV) fails to meet any other requirement as the Secretary
may prescribe.''
(2) Conforming amendment.--The heading for subsection (c)
of section 6664 is amended
[[Page S2534]]
by inserting ``for Underpayments'' after ``Exception''.
(d) Conforming Amendments.--
(1) Subparagraph (C) of section 461(i)(3) is amended by
striking ``section 6662(d)(2)(C)(iii)'' and inserting
``section 1274(b)(3)(C)''.
(2) Paragraph (3) of section 1274(b) is amended--
(A) by striking ``(as defined in section
6662(d)(2)(C)(iii))'' in subparagraph (B)(i), and
(B) by adding at the end the following new subparagraph:
``(C) Tax shelter.--For purposes of subparagraph (B), the
term `tax shelter' means--
``(i) a partnership or other entity,
``(ii) any investment plan or arrangement, or
``(iii) any other plan or arrangement,
if a significant purpose of such partnership, entity, plan,
or arrangement is the avoidance or evasion of Federal income
tax.''
(3) Section 6662(d)(2) is amended by striking subparagraphs
(C) and (D).
(4) Section 6664(c)(1) is amended by striking ``this part''
and inserting ``section 6662 or 6663''.
(5) Subsection (b) of section 7525 is amended by striking
``section 6662(d)(2)(C)(iii)'' and inserting ``section
1274(b)(3)(C)''.
(6)(A) The heading for section 6662 is amended to read as
follows:
``SEC. 6662. IMPOSITION OF ACCURACY-RELATED PENALTY ON
UNDERPAYMENTS.''
(B) The table of sections for part II of subchapter A of
chapter 68 is amended by striking the item relating to
section 6662 and inserting the following new items:
``Sec. 6662. Imposition of accuracy-related penalty on underpayments.
``Sec. 6662A. Imposition of accuracy-related penalty on understatements
with respect to reportable transactions.''
(e) Effective Date.--The amendments made by this section
shall apply to taxable years ending after the date of the
enactment of this Act.
SEC. 504. PENALTY FOR UNDERSTATEMENTS ATTRIBUTABLE TO
TRANSACTIONS LACKING ECONOMIC SUBSTANCE, ETC.
(a) In General.--Subchapter A of chapter 68 is amended by
inserting after section 6662A the following new section:
``SEC. 6662B. PENALTY FOR UNDERSTATEMENTS ATTRIBUTABLE TO
TRANSACTIONS LACKING ECONOMIC SUBSTANCE, ETC.
``(a) Imposition of Penalty.--If a taxpayer has an
noneconomic substance transaction understatement for any
taxable year, there shall be added to the tax an amount equal
to 40 percent of the amount of such understatement.
``(b) Reduction of Penalty for Disclosed Transactions.--
Subsection (a) shall be applied by substituting `20 percent'
for `40 percent' with respect to the portion of any
noneconomic substance transaction understatement with respect
to which the relevant facts affecting the tax treatment of
the item are adequately disclosed in the return or a
statement attached to the return.
``(c) Noneconomic Substance Transaction Understatement.--
For purposes of this section--
``(1) In general.--The term `noneconomic substance
transaction understatement' means any amount which would be
an understatement under section 6662A(b)(1) if section 6662A
were applied by taking into account items attributable to
noneconomic substance transactions rather than items to which
section 6662A applies.
``(2) Noneconomic substance transaction.--The term
`noneconomic substance transaction' means any transaction
if--
``(A) there is a lack of economic substance (within the
meaning of section 7701(m)(1)) for the transaction giving
rise to the claimed benefit or the transaction was not
respected under section 7701(m)(2), or
``(B) the transaction fails to meet the requirements of any
similar rule of law.
``(d) Rules Applicable To Compromise of Penalty.--
``(1) In general.--If the 1st letter of proposed deficiency
which allows the taxpayer an opportunity for administrative
review in the Internal Revenue Service Office of Appeals has
been sent with respect to a penalty to which this section
applies, only the Commissioner of Internal Revenue may
compromise all or any portion of such penalty.
``(2) Applicable rules.--The rules of paragraphs (2), (3),
(4), and (5) of section 6707A(d) shall apply for purposes of
paragraph (1).
``(e) Coordination With Other Penalties.--Except as
otherwise provided in this part, the penalty imposed by this
section shall be in addition to any other penalty imposed by
this title.
``(f) Cross References.--
``(1) For coordination of penalty with understatements under section
6662 and other special rules, see section 6662A(e).
``(2) For reporting of penalty imposed under this section to the
Securities and Exchange Commission, see section 6707A(e).''
(b) Clerical Amendment.--The table of sections for part II
of subchapter A of chapter 68 is amended by inserting after
the item relating to section 6662A the following new item:
``Sec. 6662B. Penalty for understatements attributable to transactions
lacking economic substance, etc.''
(c) Effective Date.--The amendments made by this section
shall apply to transactions entered into after February 15,
2004.
SEC. 505. MODIFICATIONS OF SUBSTANTIAL UNDERSTATEMENT PENALTY
FOR NONREPORTABLE TRANSACTIONS.
(a) Substantial Understatement of Corporations.--Section
6662(d)(1)(B) (relating to special rule for corporations) is
amended to read as follows:
``(B) Special rule for corporations.--In the case of a
corporation other than an S corporation or a personal holding
company (as defined in section 542), there is a substantial
understatement of income tax for any taxable year if the
amount of the understatement for the taxable year exceeds the
lesser of--
``(i) 10 percent of the tax required to be shown on the
return for the taxable year (or, if greater, $10,000), or
``(ii) $10,000,000.''
(b) Reduction for Understatement of Taxpayer Due to
Position of Taxpayer or Disclosed Item.--
(1) In general.--Section 6662(d)(2)(B)(i) (relating to
substantial authority) is amended to read as follows:
``(i) the tax treatment of any item by the taxpayer if the
taxpayer had reasonable belief that the tax treatment was
more likely than not the proper treatment, or''.
(2) Conforming amendment.--Section 6662(d) is amended by
adding at the end the following new paragraph:
``(3) Secretarial list.--For purposes of this subsection,
section 6664(d)(2), and section 6694(a)(1), the Secretary may
prescribe a list of positions for which the Secretary
believes there is not substantial authority or there is no
reasonable belief that the tax treatment is more likely than
not the proper tax treatment. Such list (and any revisions
thereof) shall be published in the Federal Register or the
Internal Revenue Bulletin.''
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 506. TAX SHELTER EXCEPTION TO CONFIDENTIALITY PRIVILEGES
RELATING TO TAXPAYER COMMUNICATIONS.
(a) In General.--Section 7525(b) (relating to section not
to apply to communications regarding corporate tax shelters)
is amended to read as follows:
``(b) Section Not To Apply to Communications Regarding Tax
Shelters.--The privilege under subsection (a) shall not apply
to any written communication which is--
``(1) between a federally authorized tax practitioner and--
``(A) any person,
``(B) any director, officer, employee, agent, or
representative of the person, or
``(C) any other person holding a capital or profits
interest in the person, and
``(2) in connection with the promotion of the direct or
indirect participation of the person in any tax shelter (as
defined in section 1274(b)(3)(C)).''
(b) Effective Date.--The amendment made by this section
shall apply to communications made on or after the date of
the enactment of this Act.
SEC. 507. DISCLOSURE OF REPORTABLE TRANSACTIONS.
(a) In General.--Section 6111 (relating to registration of
tax shelters) is amended to read as follows:
``SEC. 6111. DISCLOSURE OF REPORTABLE TRANSACTIONS.
``(a) In General.--Each material advisor with respect to
any reportable transaction shall make a return (in such form
as the Secretary may prescribe) setting forth--
``(1) information identifying and describing the
transaction,
``(2) information describing any potential tax benefits
expected to result from the transaction, and
``(3) such other information as the Secretary may
prescribe.
Such return shall be filed not later than the date specified
by the Secretary.
``(b) Definitions.--For purposes of this section--
``(1) Material advisor.--
``(A) In general.--The term `material advisor' means any
person--
``(i) who provides any material aid, assistance, or advice
with respect to organizing, promoting, selling, implementing,
or carrying out any reportable transaction, and
``(ii) who directly or indirectly derives gross income in
excess of the threshold amount for such advice or assistance.
``(B) Threshold amount.--For purposes of subparagraph (A),
the threshold amount is--
``(i) $50,000 in the case of a reportable transaction
substantially all of the tax benefits from which are provided
to natural persons, and
``(ii) $250,000 in any other case.
``(2) Reportable transaction.--The term `reportable
transaction' has the meaning given to such term by section
6707A(c).
``(c) Regulations.--The Secretary may prescribe regulations
which provide--
``(1) that only 1 person shall be required to meet the
requirements of subsection (a) in cases in which 2 or more
persons would otherwise be required to meet such
requirements,
``(2) exemptions from the requirements of this section, and
``(3) such rules as may be necessary or appropriate to
carry out the purposes of this section.''
(b) Conforming Amendments.--
(1) The item relating to section 6111 in the table of
sections for subchapter B of chapter 61 is amended to read as
follows:
[[Page S2535]]
``Sec. 6111. Disclosure of reportable transactions.''
(2)(A) So much of section 6112 as precedes subsection (c)
thereof is amended to read as follows:
``SEC. 6112. MATERIAL ADVISORS OF REPORTABLE TRANSACTIONS
MUST KEEP LISTS OF ADVISEES.
``(a) In General.--Each material advisor (as defined in
section 6111) with respect to any reportable transaction (as
defined in section 6707A(c)) shall maintain, in such manner
as the Secretary may by regulations prescribe, a list--
``(1) identifying each person with respect to whom such
advisor acted as such a material advisor with respect to such
transaction, and
``(2) containing such other information as the Secretary
may by regulations require.
This section shall apply without regard to whether a material
advisor is required to file a return under section 6111 with
respect to such transaction.''
(B) Section 6112 is amended by redesignating subsection (c)
as subsection (b).
(C) Section 6112(b), as redesignated by subparagraph (B),
is amended--
(i) by inserting ``written'' before ``request'' in
paragraph (1)(A), and
(ii) by striking ``shall prescribe'' in paragraph (2) and
inserting ``may prescribe''.
(D) The item relating to section 6112 in the table of
sections for subchapter B of chapter 61 is amended to read as
follows:
``Sec. 6112. Material advisors of reportable transactions must keep
lists of advisees.''
(3)(A) The heading for section 6708 is amended to read as
follows:
``SEC. 6708. FAILURE TO MAINTAIN LISTS OF ADVISEES WITH
RESPECT TO REPORTABLE TRANSACTIONS.''
(B) The item relating to section 6708 in the table of
sections for part I of subchapter B of chapter 68 is amended
to read as follows:
``Sec. 6708. Failure to maintain lists of advisees with respect to
reportable transactions.''
(c) Effective Date.--The amendments made by this section
shall apply to transactions with respect to which material
aid, assistance, or advice referred to in section
6111(b)(1)(A)(i) of the Internal Revenue Code of 1986 (as
added by this section) is provided after the date of the
enactment of this Act.
SEC. 508. MODIFICATIONS TO PENALTY FOR FAILURE TO REGISTER
TAX SHELTERS.
(a) In General.--Section 6707 (relating to failure to
furnish information regarding tax shelters) is amended to
read as follows:
``SEC. 6707. FAILURE TO FURNISH INFORMATION REGARDING
REPORTABLE TRANSACTIONS.
``(a) In General.--If a person who is required to file a
return under section 6111(a) with respect to any reportable
transaction--
``(1) fails to file such return on or before the date
prescribed therefor, or
``(2) files false or incomplete information with the
Secretary with respect to such transaction,
such person shall pay a penalty with respect to such return
in the amount determined under subsection (b).
``(b) Amount of Penalty.--
``(1) In general.--Except as provided in paragraph (2), the
penalty imposed under subsection (a) with respect to any
failure shall be $50,000.
``(2) Listed transactions.--The penalty imposed under
subsection (a) with respect to any listed transaction shall
be an amount equal to the greater of--
``(A) $200,000, or
``(B) 50 percent of the gross income derived by such person
with respect to aid, assistance, or advice which is provided
with respect to the reportable transaction before the date
the return including the transaction is filed under section
6111.
Subparagraph (B) shall be applied by substituting `75
percent' for `50 percent' in the case of an intentional
failure or act described in subsection (a).
``(c) Rescission Authority.--The provisions of section
6707A(d) (relating to authority of Commissioner to rescind
penalty) shall apply to any penalty imposed under this
section.
``(d) Reportable and Listed Transactions.--The terms
`reportable transaction' and `listed transaction' have the
respective meanings given to such terms by section
6707A(c).''.
(b) Clerical Amendment.--The item relating to section 6707
in the table of sections for part I of subchapter B of
chapter 68 is amended by striking ``tax shelters'' and
inserting ``reportable transactions''.
(c) Effective Date.--The amendments made by this section
shall apply to returns the due date for which is after the
date of the enactment of this Act.
SEC. 509. MODIFICATION OF PENALTY FOR FAILURE TO MAINTAIN
LISTS OF INVESTORS.
(a) In General.--Subsection (a) of section 6708 is amended
to read as follows:
``(a) Imposition of Penalty.--
``(1) In general.--If any person who is required to
maintain a list under section 6112(a) fails to make such list
available upon written request to the Secretary in accordance
with section 6112(b)(1)(A) within 20 business days after the
date of the Secretary's request, such person shall pay a
penalty of $10,000 for each day of such failure after such
20th day.
``(2) Reasonable cause exception.--No penalty shall be
imposed by paragraph (1) with respect to the failure on any
day if such failure is due to reasonable cause.''
(b) Effective Date.--The amendment made by this section
shall apply to requests made after the date of the enactment
of this Act.
SEC. 510. MODIFICATION OF ACTIONS TO ENJOIN CERTAIN CONDUCT
RELATED TO TAX SHELTERS AND REPORTABLE
TRANSACTIONS.
(a) In General.--Section 7408 (relating to action to enjoin
promoters of abusive tax shelters, etc.) is amended by
redesignating subsection (c) as subsection (d) and by
striking subsections (a) and (b) and inserting the following
new subsections:
``(a) Authority To Seek Injunction.--A civil action in the
name of the United States to enjoin any person from further
engaging in specified conduct may be commenced at the request
of the Secretary. Any action under this section shall be
brought in the district court of the United States for the
district in which such person resides, has his principal
place of business, or has engaged in specified conduct. The
court may exercise its jurisdiction over such action (as
provided in section 7402(a)) separate and apart from any
other action brought by the United States against such
person.
``(b) Adjudication and Decree.--In any action under
subsection (a), if the court finds--
``(1) that the person has engaged in any specified conduct,
and
``(2) that injunctive relief is appropriate to prevent
recurrence of such conduct,
the court may enjoin such person from engaging in such
conduct or in any other activity subject to penalty under
this title.
``(c) Specified Conduct.--For purposes of this section, the
term `specified conduct' means any action, or failure to take
action, subject to penalty under section 6700, 6701, 6707, or
6708.''
(b) Conforming Amendments.--
(1) The heading for section 7408 is amended to read as
follows:
``SEC. 7408. ACTIONS TO ENJOIN SPECIFIED CONDUCT RELATED TO
TAX SHELTERS AND REPORTABLE TRANSACTIONS.''
(2) The table of sections for subchapter A of chapter 67 is
amended by striking the item relating to section 7408 and
inserting the following new item:
``Sec. 7408. Actions to enjoin specified conduct related to tax
shelters and reportable transactions.''
(c) Effective Date.--The amendment made by this section
shall take effect on the day after the date of the enactment
of this Act.
SEC. 511. UNDERSTATEMENT OF TAXPAYER'S LIABILITY BY INCOME
TAX RETURN PREPARER.
(a) Standards Conformed to Taxpayer Standards.--Section
6694(a) (relating to understatements due to unrealistic
positions) is amended--
(1) by striking ``realistic possibility of being sustained
on its merits'' in paragraph (1) and inserting ``reasonable
belief that the tax treatment in such position was more
likely than not the proper treatment'',
(2) by striking ``or was frivolous'' in paragraph (3) and
inserting ``or there was no reasonable basis for the tax
treatment of such position'', and
(3) by striking ``Unrealistic'' in the heading and
inserting ``Improper''.
(b) Amount of Penalty.--Section 6694 is amended--
(1) by striking ``$250'' in subsection (a) and inserting
``$1,000'', and
(2) by striking ``$1,000'' in subsection (b) and inserting
``$5,000''.
(c) Effective Date.--The amendments made by this section
shall apply to documents prepared after the date of the
enactment of this Act.
SEC. 512. PENALTY ON FAILURE TO REPORT INTERESTS IN FOREIGN
FINANCIAL ACCOUNTS.
(a) In General.--Section 5321(a)(5) of title 31, United
States Code, is amended to read as follows:
``(5) Foreign financial agency transaction violation.--
``(A) Penalty authorized.--The Secretary of the Treasury
may impose a civil money penalty on any person who violates,
or causes any violation of, any provision of section 5314.
``(B) Amount of penalty.--
``(i) In general.--Except as provided in subparagraph (C),
the amount of any civil penalty imposed under subparagraph
(A) shall not exceed $5,000.
``(ii) Reasonable cause exception.--No penalty shall be
imposed under subparagraph (A) with respect to any violation
if--
``(I) such violation was due to reasonable cause, and
``(II) the amount of the transaction or the balance in the
account at the time of the transaction was properly reported.
``(C) Willful violations.--In the case of any person
willfully violating, or willfully causing any violation of,
any provision of section 5314--
``(i) the maximum penalty under subparagraph (B)(i) shall
be increased to the greater of--
``(I) $25,000, or
``(II) the amount (not exceeding $100,000) determined under
subparagraph (D), and
``(ii) subparagraph (B)(ii) shall not apply.
``(D) Amount.--The amount determined under this
subparagraph is--
``(i) in the case of a violation involving a transaction,
the amount of the transaction, or
[[Page S2536]]
``(ii) in the case of a violation involving a failure to
report the existence of an account or any identifying
information required to be provided with respect to an
account, the balance in the account at the time of the
violation.''
(b) Effective Date.--The amendment made by this section
shall apply to violations occurring after the date of the
enactment of this Act.
SEC. 513. FRIVOLOUS TAX SUBMISSIONS.
(a) Civil Penalties.--Section 6702 is amended to read as
follows:
``SEC. 6702. FRIVOLOUS TAX SUBMISSIONS.
``(a) Civil Penalty for Frivolous Tax Returns.--A person
shall pay a penalty of $5,000 if--
``(1) such person files what purports to be a return of a
tax imposed by this title but which--
``(A) does not contain information on which the substantial
correctness of the self-assessment may be judged, or
``(B) contains information that on its face indicates that
the self-assessment is substantially incorrect; and
``(2) the conduct referred to in paragraph (1)--
``(A) is based on a position which the Secretary has
identified as frivolous under subsection (c), or
``(B) reflects a desire to delay or impede the
administration of Federal tax laws.
``(b) Civil Penalty for Specified Frivolous Submissions.--
``(1) Imposition of penalty.--Except as provided in
paragraph (3), any person who submits a specified frivolous
submission shall pay a penalty of $5,000.
``(2) Specified frivolous submission.--For purposes of this
section--
``(A) Specified frivolous submission.--The term `specified
frivolous submission' means a specified submission if any
portion of such submission--
``(i) is based on a position which the Secretary has
identified as frivolous under subsection (c), or
``(ii) reflects a desire to delay or impede the
administration of Federal tax laws.
``(B) Specified submission.--The term `specified
submission' means--
``(i) a request for a hearing under--
``(I) section 6320 (relating to notice and opportunity for
hearing upon filing of notice of lien), or
``(II) section 6330 (relating to notice and opportunity for
hearing before levy), and
``(ii) an application under--
``(I) section 6159 (relating to agreements for payment of
tax liability in installments),
``(II) section 7122 (relating to compromises), or
``(III) section 7811 (relating to taxpayer assistance
orders).
``(3) Opportunity to withdraw submission.--If the Secretary
provides a person with notice that a submission is a
specified frivolous submission and such person withdraws such
submission within 30 days after such notice, the penalty
imposed under paragraph (1) shall not apply with respect to
such submission.
``(c) Listing of Frivolous Positions.--The Secretary shall
prescribe (and periodically revise) a list of positions which
the Secretary has identified as being frivolous for purposes
of this subsection. The Secretary shall not include in such
list any position that the Secretary determines meets the
requirement of section 6662(d)(2)(B)(ii)(II).
``(d) Reduction of Penalty.--The Secretary may reduce the
amount of any penalty imposed under this section if the
Secretary determines that such reduction would promote
compliance with and administration of the Federal tax laws.
``(e) Penalties in Addition to Other Penalties.--The
penalties imposed by this section shall be in addition to any
other penalty provided by law.''
(b) Treatment of Frivolous Requests for Hearings Before
Levy.--
(1) Frivolous requests disregarded.--Section 6330 (relating
to notice and opportunity for hearing before levy) is amended
by adding at the end the following new subsection:
``(g) Frivolous Requests for Hearing, Etc.--Notwithstanding
any other provision of this section, if the Secretary
determines that any portion of a request for a hearing under
this section or section 6320 meets the requirement of clause
(i) or (ii) of section 6702(b)(2)(A), then the Secretary may
treat such portion as if it were never submitted and such
portion shall not be subject to any further administrative or
judicial review.''
(2) Preclusion from raising frivolous issues at hearing.--
Section 6330(c)(4) is amended--
(A) by striking ``(A)'' and inserting ``(A)(i)'';
(B) by striking ``(B)'' and inserting ``(ii)'';
(C) by striking the period at the end of the first sentence
and inserting ``; or''; and
(D) by inserting after subparagraph (A)(ii) (as so
redesignated) the following:
``(B) the issue meets the requirement of clause (i) or (ii)
of section 6702(b)(2)(A).''
(3) Statement of grounds.--Section 6330(b)(1) is amended by
striking ``under subsection (a)(3)(B)'' and inserting ``in
writing under subsection (a)(3)(B) and states the grounds for
the requested hearing''.
(c) Treatment of Frivolous Requests for Hearings Upon
Filing of Notice of Lien.--Section 6320 is amended--
(1) in subsection (b)(1), by striking ``under subsection
(a)(3)(B)'' and inserting ``in writing under subsection
(a)(3)(B) and states the grounds for the requested hearing'',
and
(2) in subsection (c), by striking ``and (e)'' and
inserting ``(e), and (g)''.
(d) Treatment of Frivolous Applications for Offers-in-
Compromise and Installment Agreements.--Section 7122 is
amended by adding at the end the following new subsection:
``(e) Frivolous Submissions, Etc.--Notwithstanding any
other provision of this section, if the Secretary determines
that any portion of an application for an offer-in-compromise
or installment agreement submitted under this section or
section 6159 meets the requirement of clause (i) or (ii) of
section 6702(b)(2)(A), then the Secretary may treat such
portion as if it were never submitted and such portion shall
not be subject to any further administrative or judicial
review.''
(e) Clerical Amendment.--The table of sections for part I
of subchapter B of chapter 68 is amended by striking the item
relating to section 6702 and inserting the following new
item:
``Sec. 6702. Frivolous tax submissions.''
(f) Effective Date.--The amendments made by this section
shall apply to submissions made and issues raised after the
date on which the Secretary first prescribes a list under
section 6702(c) of the Internal Revenue Code of 1986, as
amended by subsection (a).
SEC. 514. REGULATION OF INDIVIDUALS PRACTICING BEFORE THE
DEPARTMENT OF TREASURY.
(a) Censure; Imposition of Penalty.--
(1) In general.--Section 330(b) of title 31, United States
Code, is amended--
(A) by inserting ``, or censure,'' after ``Department'',
and
(B) by adding at the end the following new flush sentence:
``The Secretary may impose a monetary penalty on any
representative described in the preceding sentence. If the
representative was acting on behalf of an employer or any
firm or other entity in connection with the conduct giving
rise to such penalty, the Secretary may impose a monetary
penalty on such employer, firm, or entity if it knew, or
reasonably should have known, of such conduct. Such penalty
shall not exceed the gross income derived (or to be derived)
from the conduct giving rise to the penalty and may be in
addition to, or in lieu of, any suspension, disbarment, or
censure.''
(2) Effective date.--The amendments made by this subsection
shall apply to actions taken after the date of the enactment
of this Act.
(b) Tax Shelter Opinions, Etc.--Section 330 of such title
31 is amended by adding at the end the following new
subsection:
``(d) Nothing in this section or in any other provision of
law shall be construed to limit the authority of the
Secretary of the Treasury to impose standards applicable to
the rendering of written advice with respect to any entity,
transaction plan or arrangement, or other plan or
arrangement, which is of a type which the Secretary
determines as having a potential for tax avoidance or
evasion.''
SEC. 515. PENALTY ON PROMOTERS OF TAX SHELTERS.
(a) Penalty on Promoting Abusive Tax Shelters.--Section
6700(a) is amended by adding at the end the following new
sentence: ``Notwithstanding the first sentence, if an
activity with respect to which a penalty imposed under this
subsection involves a statement described in paragraph
(2)(A), the amount of the penalty shall be equal to 50
percent of the gross income derived (or to be derived) from
such activity by the person on which the penalty is
imposed.''
(b) Effective Date.--The amendment made by this section
shall apply to activities after the date of the enactment of
this Act.
SEC. 516. STATUTE OF LIMITATIONS FOR TAXABLE YEARS FOR WHICH
LISTED TRANSACTIONS NOT REPORTED.
(a) In General.--Section 6501(e)(1) (relating to
substantial omission of items for income taxes) is amended by
adding at the end the following new subparagraph:
``(C) Listed transactions.--If a taxpayer fails to include
on any return or statement for any taxable year any
information with respect to a listed transaction (as defined
in section 6707A(c)(2)) which is required under section 6011
to be included with such return or statement, the tax for
such taxable year may be assessed, or a proceeding in court
for collection of such tax may be begun without assessment,
at any time within 6 years after the time the return is
filed. This subparagraph shall not apply to any taxable year
if the time for assessment or beginning the proceeding in
court has expired before the time a transaction is treated as
a listed transaction under section 6011.''
(b) Effective Date.--The amendment made by this section
shall apply to transactions in taxable years beginning after
the date of the enactment of this Act.
SEC. 517. DENIAL OF DEDUCTION FOR INTEREST ON UNDERPAYMENTS
ATTRIBUTABLE TO NONDISCLOSED REPORTABLE AND
NONECONOMIC SUBSTANCE TRANSACTIONS.
(a) In General.--Section 163 (relating to deduction for
interest) is amended by redesignating subsection (m) as
subsection (n) and by inserting after subsection (l) the
following new subsection:
``(m) Interest on Unpaid Taxes Attributable To Nondisclosed
Reportable Transactions and Noneconomic Substance
Transactions.--No deduction shall be allowed under this
chapter for any interest paid or accrued under section 6601
on any underpayment of tax which is attributable to--
[[Page S2537]]
``(1) the portion of any reportable transaction
understatement (as defined in section 6662A(b)) with respect
to which the requirement of section 6664(d)(2)(A) is not met,
or
``(2) any noneconomic substance transaction understatement
(as defined in section 6662B(c)).''
(b) Effective Date.--The amendments made by this section
shall apply to transactions in taxable years beginning after
the date of the enactment of this Act.
SEC. 518. AUTHORIZATION OF APPROPRIATIONS FOR TAX LAW
ENFORCEMENT.
There is authorized to be appropriated $300,000,000 for
each fiscal year beginning after September 30, 2002, for the
purpose of carrying out tax law enforcement to combat tax
avoidance transactions and other tax shelters, including the
use of offshore financial accounts to conceal taxable income.
Subtitle B--Other Provisions
SEC. 521. AFFIRMATION OF CONSOLIDATED RETURN REGULATION
AUTHORITY.
(a) In General.--Section 1502 (relating to consolidated
return regulations) is amended by adding at the end the
following new sentence: ``In prescribing such regulations,
the Secretary may prescribe rules applicable to corporations
filing consolidated returns under section 1501 that are
different from other provisions of this title that would
apply if such corporations filed separate returns.''
(b) Result Not Overturned.--Notwithstanding subsection (a),
the Internal Revenue Code of 1986 shall be construed by
treating Treasury regulation Sec. 1.1502-20(c)(1)(iii) (as in
effect on January 1, 2001) as being inapplicable to the type
of factual situation in 255 F.3d 1357 (Fed. Cir. 2001).
(c) Effective Date.--The provisions of this section shall
apply to taxable years beginning before, on, or after the
date of the enactment of this Act.
SEC. 522. SIGNING OF CORPORATE TAX RETURNS BY CHIEF EXECUTIVE
OFFICER.
(a) In General.--Section 6062 (relating to signing of
corporation returns) is amended by striking the first
sentence and inserting the following new sentence: ``The
return of a corporation with respect to income shall be
signed by the chief executive officer of such corporation (or
other such officer of the corporation as the Secretary may
designate if the corporation does not have a chief executive
officer). The preceding sentence shall not apply to any
return of a regulated investment company (within the meaning
of section 851).''.
(b) Effective Date.--The amendment made by this section
shall apply to returns filed after the date of the enactment
of this Act.
SEC. 523. DISCLOSURE OF TAX SHELTERS TO CORPORATE AUDIT
COMMITTEE.
(a) In General.--Subchapter B of chapter 61 (relating to
information and returns) is amended by inserting after
section 6111 the following new section:
``SEC. 6111A. DISCLOSURE OF REPORTABLE TRANSACTIONS TO
CORPORATE AUDIT COMMITTEE.
``If a corporation is required under section 6011 to
include on any return or statement any information with
respect to a reportable transaction (as defined in section
6707A(c)), the chief executive officer of such corporation
(or other such officer of the corporation as the Secretary
may designate if the corporation does not have a chief
executive officer) shall disclose such information in a
statement to the audit committee of the board of directors of
such corporation or any similar committee or entity
performing auditing functions on behalf of such
corporation.''.
(b) Penalty for Failure to Disclose.--Section 6707A(a)
(relating to penalty for failure to include reportable
transaction information with return or statement) is amended
by inserting ``, or fails to file a statement required under
section 6111A,'' before ``shall pay''.
(c) Clerical Amendment.--The table of sections for
subchapter B of chapter 61 is amended by inserting after the
item relating to section 6111 the following new item:
``Sec. 6111A. Disclosure of reportable transactions to corporate audit
committee.''
(d) Effective Date.--The amendments made by this section
shall apply to transactions in taxable years beginning after
the date of the enactment of this Act.
Subtitle C--Budget Points of Order
SEC. 531. EXTENSION OF PAY-AS-YOU-GO ENFORCEMENT IN THE
SENATE.
Section 2 of Senate Resolution 304 (107th Congress) is
amended--
(1) in subsection (a)(1), by striking ``April 15, 2003''
and inserting ``the end of the 108th Congress''; and
(2) in subsection (b)(1)(B), by striking ``April 15, 2003''
and inserting ``at the end of the 108th Congress''.
______
By Mrs. DOLE:
S. 420. A bill to provide for the acknowledgment of the Lumbee Tribe
of North Carolina, and for other purposes; to the Committee on Indian
Affairs.
Mrs. DOLE. Mr. President, I ask unanimous consent that the text of
the attached legislation ``Lumbee Acknowledgment Act of 2003,'' be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 420
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Lumbee Acknowledgment Act of
2003''.
SEC. 2. LUMBEE ACKNOWLEDGMENT.
The Act of June 7, 1956 (70 Stat. 254, chapter 375), is
amended to read as follows:
``SECTION 1. SHORT TITLE.
``This Act may be cited as the `Lumbee Acknowledgment Act'.
``SEC. 2. FINDINGS.
``Congress finds that--
``(1) many Indians living in Robeson County, North
Carolina, and adjoining counties in the State are descendants
of a once large and prosperous tribe that occupied the land
along the Lumbee River at the time when the earliest European
settlements were established in the area;
``(2) when the members of that tribe first made contact
with the settlers, the members were a well-established and
distinctive people living in European-style houses, tilling
the soil, owning slaves and livestock, and practicing many of
the arts and crafts of European civilization;
``(3) tribal legend, a distinctive appearance and manner of
speech, and the frequent recurrence among tribal members of
family names (such as Bullard, Chavis, Drinkwater, Locklear,
Lowery, Oxendine, and Sampson) that were found on the roster
of the earliest English settlements, provide evidence that
the Indians now living in the area may trace their ancestry
back to both--
``(A) European settlers; and
``(B) certain coastal tribes of Indians in the State,
principally the Cheraw Tribe;
``(4) the Lumbee Tribe has remained a distinct Indian
community since European settlers first made contact with the
community;
``(5) the members of the Tribe--
``(A) are naturally and understandably proud of their
heritage; and
``(B) seek to establish their social status and preserve
their ancestry;
``(6) the State has acknowledged the Lumbee Indians as an
Indian tribe since 1885;
``(7) in 1956, Congress acknowledged the Lumbee Indians as
an Indian tribe but withheld from the Tribe the benefits,
privileges, and immunities to which the Tribe and members of
the Tribe would have been entitled by virtue of status as an
acknowledged Indian tribe; and
``(8)(A) the Tribe is entitled to full Federal
acknowledgment; and
``(B) the programs, services, and benefits that accompany
that status should be extended to the Tribe and members of
the Tribe.
``SEC. 3. DEFINITIONS.
``In this Act:
``(1) Acknowledgment.--The term `acknowledgment' means
acknowledgment by the United States that--
``(A) an Indian group is an Indian tribe; and
``(B) the members of the Indian group are eligible for the
programs, services, and benefits (including privileges and
immunities) provided by the United States to members of
Indian tribes because of the status of those members as
Indians.
``(2) Indian.--The term `Indian' means a member of an
Indian tribe or Indian group.
``(3) Indian group.--The term `Indian group' means any
Indian band, pueblo, village, or community that is not
acknowledged.
``(4) Indian tribe.--The term `Indian tribe' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
``(5) Secretary.--The term `Secretary' means the Secretary
of the Interior.
``(6) Service population.--The term `service population'
means the population of the Tribe eligible to receive the
programs, services, and benefits described in section 5(a),
as determined by the Secretary under section 5(c).
``(7) State.--The term `State' means the State of North
Carolina.
``(8) Tribal roll.--The term `tribal roll' means a list of
individuals who have been determined by the Tribe to meet the
membership requirements of the Tribe established in the
constitution of the Tribe adopted November 11, 2000.
``(9) Tribe.--The term `Tribe' means the Lumbee Tribe of
North Carolina, located in Robeson County, North Carolina,
and adjoining counties in the State.
``SEC. 4. ACKNOWLEDGMENT OF LUMBEE TRIBE.
``(a) Acknowledgment.--
``(1) In general.--The Tribe is acknowledged.
``(2) Applicable law.--All laws (including regulations) of
the United States of general applicability to Indians and
Indian tribes shall apply to the Tribe and members of the
Tribe.
``(b) Petition.--Any Indian group located in Robeson
County, North Carolina (or any adjoining county), the members
of which are not members of the Tribe as determined by the
Secretary under section 5(c), may submit to the Secretary a
petition in accordance with part 83 of title 25, Code of
Federal Regulations (or a successor regulation), for
acknowledgement.
``SEC. 5. SERVICES.
``(a) In General.--Beginning on the date of enactment of
this section, the Tribe and members of the Tribe are eligible
for all programs, services, and benefits (including
[[Page S2538]]
privileges and immunities) provided by the Federal Government
to Indian tribes and members of Indian tribes.
``(b) Reservation.--
``(1) Programs, services, and benefits.--For the purpose of
providing any program, service, or benefit described in
subsection (a) to the Tribe or a member of the Tribe, the
Tribe, and any member of the Tribe residing in the county of
Robeson, Cumberland, Hoke, or Scotland in the State, shall be
considered to be residing on or near an Indian reservation.
``(2) Federal law.--Beginning on the date of enactment of
this section, Robeson County, North Carolina, shall be
considered to be the reservation of the Tribe for the purpose
of any Federal law applicable to the Tribe.
``(3) No effect on fee ownership.--Nothing in this
subsection affects the ownership status of any fee land
within the State, or the status of any right or easement in
the State, in existence as of the date of enactment of this
section.
``(c) Determination of Service Population.--
``(1) In general.--Not later than 1 year after the date of
enactment of this section, the Secretary shall--
``(A) using the tribal roll in existence as of the date of
enactment of this section, verify the population of the
Tribe; and
``(B) determine the population of the Tribe eligible to
receive the programs, services, and benefits described in
subsection (a).
``(2) Verification.--The Secretary shall base a
verification under paragraph (1)(A) only on a confirmation of
compliance of members of the Tribe with membership criteria
established in the constitution of the Tribe adopted November
11, 2000.
``(d) Needs of Tribe.--
``(1) In general.--On determination of the service
population, the Secretary and the Secretary of Health and
Human Services shall develop, in consultation with the
Tribe--
``(A) a determination of the needs of the Tribe; and
``(B) a recommended budget required to serve the Tribe.
``(2) Submission of budget request.--For each fiscal year
after determination of the service population, the Secretary
or the Secretary of Health and Human Services, as
appropriate, shall submit to the President a recommended
budget for programs, services, and benefits provided by the
United States to members of the Tribe because of the status
of those members as Indians (including funding
recommendations for the Tribe that are based on the
determination and budget described in paragraph (1)) for
inclusion in the annual budget submitted by the President to
Congress in accordance with section 1108 of title 31, United
States Code.
``SEC. 6. JURISDICTION.
``(a) In General.--Except as provided in subsection (b),
the State shall exercise jurisdiction over all criminal
offenses that are committed on, and all civil actions that
arise on, land located in the State that is owned by, or held
in trust by the United States for the benefit of, the Tribe
or any member of the Tribe.
``(b) Transfer of Jurisdiction.--
``(1) In general.--After consultation with the Attorney
General, the Secretary may accept, on behalf of the United
States, any transfer by the State to the United States of all
or any portion of the jurisdiction of the State described in
subsection (a).
``(2) Agreement.--A transfer of jurisdiction under
paragraph (1)--
``(A) shall be subject to an agreement entered into by the
Tribe and the State relating to the transfer; and
``(B) shall not take effect until at least 2 years after
the date on which the agreement is entered into.
``(c) No Effect on Indian Child Welfare Act Agreements.--
Nothing in this section affects the application of section
109 of the Indian Child Welfare Act of 1978 (25 U.S.C. 1919).
``SEC. 7. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated such sums as are
necessary to carry out this Act.''.
______
By Ms. CANTWELL (for herself, Mr. Smith, Mrs. Murray, and Mrs.
Feinstein):
S. 421. A bill to reauthorize and revise the Renewable Energy
Production Incentive program, and for other purposes; to the Committee
on Energy and Natural Resources.
Ms. CANTWELL. Mr. President, I rise today to introduce--along with my
colleagues Senators Smith, Murray and Feinstein--the Renewable Energy
Production Incentive, REPI, Reform Act.
This bill reauthorizes the REPI program, which was created as part of
the 1992 National Energy Policy Act to foster greater renewable energy
production and level the playing field for public power utilities,
which do not qualify for renewable energy tax credits. The REPI program
provides direct payments to publicly- and cooperatively-owned utilities
at a rate of 1.5 cents/kWh, indexed for inflation, for electricity
generated from wind, solar, certain geothermal and biomass sources.
As some of my colleagues may recall, the Senator from Oregon and I
introduced a very similar bill last session, which was subsequently
included in the energy bill that passed the Senate last spring. While
conferees were ultimately unable to reach agreement on the broader
energy bill, reauthorizing the REPI program must remain a priority as
we again contemplate energy legislation during the 108th Congress.
Since this program's creation, REPI has become an important incentive
for locally-owned, not-for-profit utilities to become involved in the
effort to diversify our Nation's generation sources to include clean,
sustainable sources of power. Since 1995, more than 36 projects in 17
States have received more than $21 million in REPI incentives and
produced more than 3,000 megawatt-hours of electricity per year.
In my home State of Washington, where 55 percent of the overall
energy load is served by public power, the REPI program had already
helped support wood-waste and landfill gas projects, and promises to
help locally-owned utilities tap into our tremendous wind resources.
Already, the hills south of Kennewick, WA are home to the Nine Canyon
Wind project--a 48-megawatt wind farm consisting of 37 turbines--
producing enough energy to serve 12,000 households. This bill will
provide continued support for these innovative projects.
The Renewable Energy Production Incentive Reform Act that my
colleagues and I have introduced today will do three simple things. It
will: reauthorize the program for another 10 years; direct the
Department of Energy, which runs the program, to allocate funds on a
more equitable basis in years in which the demand for REPI dollars far
outpaces available appropriations; and clarifies that landfill gas
projects and tribal governments are eligible to receive REPI funding.
One of the key challenges in developing a 21st century energy policy
for this Nation is putting in place the proper incentives to add new
and sustainable sources of power to the grid. My colleagues and I from
the Northwest have learned this lesson well over the past few years,
during which prolonged droughts have stretched to the limit the
hydroelectric system that has--since the 1930s--formed the basis for
our region's economic growth. The new clean energy projects the REPI
program supports help relieve some of the stress on our hydro system
and position my state and region for the next cycle of innovation in
energy technology.
I look forward to working with my cosponsors during this session to
ensure this small but important program is reauthorized--whether as
stand-alone legislation or part of a broader energy bill. I believe we
as a Nation now stand on the cusp of a revolution in clean energy
technology. The Renewable Energy Production Incentive program is key in
helping public power systems participate, as we work to put in place an
energy policy that will meet the needs of our 21st Century economy.
______
By Mr. BREAUX:
S. 422. A bill to amend the Tariff Act of 1930 to modify the
provisions relating to drawback claims, and for other purposes; to the
Committee on Finance.
Mr. BREAUX. Mr. President, I would like to clarify a provision of the
omnibus appropriations bill that was included as a result of
legislation I have been working on since the last Congress. In the
transportation section of the omnibus, language was included to help
provide for tighter restrictions on the waiver process currently in
place at the Transportation Security Administration. Specifically, with
this language I was seeking to make sure that venues, events and
stadiums across the country are safe for the thousands in attendance.
However, there are certain airships which are particularly well suited
to assist law enforcement in providing sustained airborne surveillance
over and around stadium or other events. It was my intention when
crafting this language that blimps operating in this capacity should
not be prevented from applying for a waiver from TSA. In fact, under
the legislation, the Secretary may grant a waiver for blimps which are
being operated for event safety or security, including those which are
capable of providing
[[Page S2539]]
immediate on-call airborne security camera surveillance services at the
stadium or event. It was never my intention to prevent this type of
security enhancement from being utilized because these types of
airships can and do provide significant security protections for large
venue events. I am in possession of a letter from the city of Anaheim
which states that these air operations ``were a major component of the
security plan'' as they hosted the 2002 World Series. I ask unanimous
consent that this be printed in the Record.
There being no objection, the letter was ordered to be printed in the
Record, as follows:
Anaheim Police Department,
Anaheim, CA, November 19, 2002.
James Hilton,
Director of Operations, The Lightship Group, Orlando, FL.
Dear Mr. Hilton: As you know, the City of Anaheim hosted
the 2002 Major League Baseball World Series and the Anaheim
Police Department was charged with providing security during
the games.
Air operations were a major component of the security plan.
Carl Harbuck, Chief Pilot for the Saturn airship, facilitated
a joint aerial plan with our helicopter pilots. Carl arranged
for one of our pilots to fly in your airship during each of
the four games played in Anaheim. Having one Anaheim officer
in your airship, along with the officers in our helicopter,
proved to be an effective combination. The Anahiem officer in
the airship was able to make observations and convey them to
our helicopter crewmembers and officers on the ground in a
timely, effective manner. Each of our pilots assigned to your
crew during the games had the highest praise for the members
of your airship operations team. The members were very
professional and informative on how they conduct operations.
As you know, having insight in another work mission
facilitates a smooth and safe environment for all
participants.
Please convey my sincere appreciation to Carl and Pilot
Jeff Capek, as well as all your team members, for their
hospitality. Let me extend an invitation to your pilots to
observe our air operations. They are welcome any time.
Sincerely,
Roger A. Baker,
Chief of Police.
______
By Ms. COLLINS (for herself and Mr. Feingold):
S. 423. A bill to promote health care coverage parity for individuals
participating in legal recreational activities or legal transportation
activities; to the Committee on Health, Education, Labor, and Pensions.
Ms. COLLINS. Mr. President, I am pleased to join with my colleague
from Wisconsin, Senator Feingold, in introducing legislation to
prohibit health insurers from denying benefits to plan participants if
they are injured while engaging in legal recreational activities like
skiing or horseback riding.
Among the many rules that were issued at the end of the Clinton
Administration was one that was intended to ensure non-discrimination
in health coverage in the group market. This rule was issued jointly on
January 8, 2001, by the Department of Labor, the Internal Revenue
Service and the Health Care Financing Administration--now the Centers
for Medicare and Medicaid Services--in accordance with the Health
Insurance Portability and Accountability Act, HIPAA, of 1996.
While I was pleased that the rule prohibits health plans and issuers
from denying coverage to individuals who engage in certain types of
recreational activities, such as skiing, horseback riding, snowmobiling
or motorcycling, I am extremely concerned that it would allow insurers
to deny health benefits for an otherwise covered injury that results
from participation in these activities.
The rule states that: ``While a person cannot be excluded from a plan
for engaging in certain recreational activities, benefits for a
particular injury can, in some cases, be excluded based on the source
of the injury.'' A plan could, for example, include a general exclusion
for injuries sustained while doing a specified list of recreational
activities, even though treatment for those injuries, a broken arm for
instance, would have been covered under the plan if the individual had
tripped and fallen.
Because of this loophole, an individual who was injured while skiing
or running could be denied health care coverage, while someone who is
injured while drinking and driving a car would be protected.
This clearly is contrary to Congressional intent. One of the purposes
of HIPAA was to prohibit plans and issuers from establishing
eligibility rules for health coverage based on certain health-related
factors, including evidence of insurability. To underscore that point,
the conference report language stated that ``the inclusion of evidence
of insurability in the definition of health status is intended to
ensure, among other things, that individuals are not excluded from
health care coverage due to their participation in activities such as
motorcycling, snowmobiling, all-terrain vehicle riding, horseback
riding, skiing and other similar activities.'' The conference report
also states that ``this provision is meant to prohibit insurers or
employers from excluding employees in a group from coverage or charging
them higher premiums based on their health status and other related
factors that could lead to higher health costs.''
Millions of Americans participate in these legal and common
recreational activities which, if practiced with appropriate
precautions, do not significantly increase the likelihood of serious
injury. Moreover, in enacting HIPAA, Congress simply did not intend
that people would be allowed to purchase health insurance only to find
out, after the fact, that they have no coverage for an injury resulting
from a common recreational activity. If this rule is allowed to stand,
millions of Americans will be forced to forgo recreational activities
that they currently enjoy lest they have an accident and find out that
they are not covered for needed care resulting from that accident.
The legislation that we are introducing today will clarify that
individuals participating in activities routinely enjoyed by millions
of Americans cannot be denied access to health care coverage or health
benefits as a result of their activities, and I urge all of our
colleagues to join us as cosponsors.
Mr. FEINGOLD. Mr. President, I rise today with my colleague from
Maine to introduce legislation to promote health care parity for
individuals participating in legal transportation and recreational
activities. This legislation addresses concerns that I have been
hearing from a wide range of Wisconsinites about a loophole caused by
the Department of Health and Human Services' ruling that makes it
possible for health care coverage to be denied to those who are injured
while participating in these kinds of legal activities.
In January of 2001, the Health Care Finance administration released
regulations governing the Health Care Insurance Accountability Act of
1996, also known as HIPAA. As part of this act, Congress intended to
ban health insurance discrimination against those participating in
legal transportation or recreational activities. Ironically, it appears
that the rules written in response to this legislation may have had
precisely the opposite effect.
These new regulations at first state that an employer cannot refuse
health care coverage to an employee on the basis of participation in
recreational activities. But they then go on to say that health care
benefits can be denied for injuries sustained in connection with those
recreational activities.
Not only does this ruling make little sense, it flies in the face of
what Congress intended. In a colloquy between Senators Moseley-Braun
and Kassebaum, Senator Mosely-Braun stated, ``As I understand it, this
formulation is intended to ensure that, among other things,
participants and beneficiaries are not excluded from health care
coverage because they participate in activities such as motorcycling,
skiing, horseback riding, snowmobiling, or other similar activities.''
And Senator Kassebaum simply said ``The Senator from Illinois is
correct.''
But the bureaucrats turned around and permitted the denial of
benefits for any injury sustained while participating in these legal
activities. This ruling makes no sense. Because of this loophole,
someone who participates in motorcycling, snowmobiling, running or
walking could be denied health care coverage, while someone who is
injured while drinking and driving a car would be protected.
Congress voted 98-0 in favor of the HIPAA legislation that included
this language. We must close the loophole that the interpretation of
this provision has created.
[[Page S2540]]
From riding Harley Davidson motorcycles to the visiting the
Snowmobile Hall of Fame in St. Germain, these activities are part of
Wisconsin's heritage and economy. It makes no sense that they would be
singled out for this unfair treatment.
Millions of Americans rely on motorcycles for their transportation to
work. Individuals should not singled out just because they choose a
different mode of transportation to go to work.
I urge my colleagues to cosponsor this legislation and provide health
care parity for individuals participating in legal transportation and
recreational activities.
______
By Mr. BINGAMAN (for himself, Mr. Inouye, Mr. Campbell, and Mr.
Daschle):
S. 424. A bill to establish, reauthorize, and improve energy programs
relating to Indian tribes; to the Committee on Indian Affairs.
Mr. BINGAMAN. Mr. President, today I am introducing a bipartisan bill
to address the energy needs of Native Americans in this country. In
doing so, I hope to build upon the widespread support for these
provisions that was evident during the energy bill debate in the 107th
Congress. That support continues as I am pleased to note that Senators
Inouye, Campbell and Daschle are original cosponsors of this measure.
I'd like to specifically recognize the work of Senator Inouye and his
staff in putting together this bill. I appreciate their significant
contribution to its content.
Energy matters concerning Native Americans raise two different issues
that warrant attention. First, tribal lands contain significant and
diverse energy resources and therefore have a role to play in the area
of national energy policy. Second, there continues to be a lack of
basic energy infrastructure on a number of reservations.
With respect to the first issue, a significant share of domestic
energy resources are located on Indian lands. Over the last 20 years,
Indian lands have contributed approximately 11 percent of the Nation's
onshore oil and natural gas production, and 11 percent of its coal
production. This level of contribution could increase in the future
given available supplies of fossil energy resources and the potential
development of significant renewable energy resources. The Bureau of
Indian Affairs estimates that there are almost 90 reservations with
energy resource potential, including oil and gas, coal and coal bed
methane, wind, and geothermal resources. Developing these resources,
particularly those such as wind power that have the capability to
enable tribes to generate electricity on-reservation, requires dealing
with current obstacles such as limited transmission capacity.
As for on-reservation energy needs, there is much to be done. A
recent Department of Energy report estimated that 14.2 percent of all
Native American homes on reservations have no access to electricity
compared to just 1.4 percent of all U.S. households. The situation is
especially acute on the Navajo Reservation where approximately 37
percent of Navajo homes do not have electricity. Moreover, the average
Indian household spends 4 percent of its income on electricity, twice
that of the average for all U.S. households. The high cost of energy is
particularly harmful to reservation communities, where unemployment
averages 43 percent. Another 33 percent who live in and around those
communities earn wages below the poverty level. Given these statistics,
it is clear that Indian tribes with substantial energy resources and
high unemployment rates have a critical interest in enhancing their
participation in the development of energy resources as well as
providing electrical services to their reservation communities.
The bill being introduced today is a comprehensive approach to the
energy issues facing Native Americans. I believe it will assist tribes
to develop and utilize available energy supplies, thereby improving on-
reservation quality of life while also assisting tribes as they
continue to move towards economic self-sufficiency. I look forward to
working with my colleagues on this bill and am hopeful that this
important legislation can be enacted this year.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 424
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Tribal
Energy Self-Sufficiency Act''.
(b) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.
TITLE I--INDIAN ENERGY
Sec. 101. Comprehensive Indian energy program.
Sec. 102. Office of Indian Energy Policy and Programs.
Sec. 103. Siting of energy facilities on tribal land.
Sec. 104. Indian mineral development review.
Sec. 105. Renewable energy study.
Sec. 106. Federal power marketing administrations.
Sec. 107. Feasibility study for combined wind and hydropower
demonstration project.
Sec. 108. Transmission line demonstration project.
TITLE II--RENEWABLE ENERGY AND RURAL CONSTRUCTION GRANTS
Sec. 201. Renewable energy production incentive.
TITLE III--ENERGY EFFICIENCY AND ASSISTANCE TO LOW-INCOME CONSUMERS
Sec. 301. Low-income community energy efficiency pilot program.
Sec. 302. Rural and remote community electrification grants.
SEC. 2. DEFINITION OF SECRETARY.
In this Act, the term ``Secretary'' means the Secretary of
Energy.
TITLE I--INDIAN ENERGY
SEC. 101. COMPREHENSIVE INDIAN ENERGY PROGRAM.
Title XXVI of the Energy Policy Act of 1992 (25 U.S.C. 3501
et seq.) is amended by adding after section 2606 the
following:
``SEC. 2607. COMPREHENSIVE INDIAN ENERGY PROGRAM.
``(a) Definitions.--In this section:
``(1) Director.--The term `Director' means the Director of
the Office of Indian Energy Policy and Programs of the
Department of Energy.
``(2) Indian land.--The term `Indian land' means--
``(A) any land within the limits of an Indian reservation,
pueblo, or rancheria;
``(B) any land not within the limits of an Indian
reservation, pueblo, or rancheria, title to which is held--
``(i) in trust by the United States for the benefit of an
Indian tribe;
``(ii) by an Indian tribe subject to restriction by the
United States against alienation; or
``(iii) by a dependent Indian community; and
``(C) land conveyed to an Alaska Native corporation under
the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et
seq.).
``(b) Indian Energy Education Planning and Management
Assistance.--
``(1) In general.--The Director shall establish programs
within the Office of Indian Energy Policy and Programs to
assist Indian tribes in meeting energy education, research
and development, planning, and management needs.
``(2) Grants.--In carrying out this section, the Director
may provide grants, on a competitive basis, to an Indian
tribe for use in carrying out--
``(A) renewable energy, nonrenewable energy, energy
efficiency, and energy conservation programs;
``(B) studies and other activities supporting tribal
acquisition of energy supplies, services, and facilities;
``(C) planning, construction, development, operation,
maintenance, and improvement of tribal electrical generation,
transmission, and distribution facilities located on Indian
land; and
``(D) development, construction, and interconnection of
electric power transmission facilities located on Indian land
with other electric transmission facilities.
``(3) Formula.--
``(A) In general.--The Director may develop, in
consultation with Indian tribes, a formula for providing
grants under this section.
``(B) Considerations.--In developing a formula under
subparagraph (A), the Director may take into account--
``(i) the number of acres of Indian land owned by an Indian
tribe;
``(ii) the number of households on the Indian land of an
Indian tribe;
``(iii) the number of households on the Indian land of an
Indian tribe that have no electric service or are
underserved; and
``(iv) financial or other assets available to the Indian
tribe from any source.
``(4) Priority.--In providing a grant under this
subsection, the Director shall give priority to an
application received from an Indian tribe with inadequate
electric service (as determined by the Director).
``(5) Regulations.--The Secretary may promulgate such
regulations as the Secretary determines are necessary to
carry out this subsection.
``(6) Authorization of appropriations.--There is authorized
to be appropriated to the
[[Page S2541]]
Secretary to carry out this section $20,000,000 for each of
fiscal years 2003 through 2010.
``(c) Loan Guarantee Program.--
``(1) Authority.--Subject to paragraph (3), the Secretary
may provide loan guarantees (as defined in section 502 of the
Federal Credit Reform Act of 1990 (2 U.S.C. 661a) for not
more than 90 percent of the unpaid principal and interest due
on any loan made to any Indian tribe for--
``(A) energy development (including the planning,
development, construction, and maintenance of electrical
generation plants); and
``(B) for transmission and delivery mechanisms for
electricity produced on Indian land.
``(2) Lenders.--A loan guaranteed under this subsection
shall be made by--
``(A) a financial institution subject to examination by the
Secretary; or
``(B) an Indian tribe, from funds of the Indian tribe.
``(3) Limitation on amount.--The aggregate outstanding
amount guaranteed by the Secretary of Energy at any time
under this subsection shall not exceed $2,000,000,000.
``(4) Regulations.--The Secretary may promulgate such
regulations as the Secretary determines are necessary to
carry out this subsection.
``(5) Funding.--
``(A) Authorization of appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this subsection.
``(B) Availability.--Funds made available under
subparagraph (A) shall remain available until expended.
``(d) Indian Energy Preference.--
``(1) In general.--A Federal agency or department may give,
in the purchase of electricity, oil, gas, coal, or any other
energy product or byproduct, preference in the purchase to an
energy and resource production enterprise, partnership,
corporation, or other type of business organization the
majority of the interest in which is owned and controlled by
an Indian tribe.
``(2) Price of products.--In carrying out this subsection,
a Federal agency or department shall--
``(A) pay not more than the prevailing market price for an
energy product or byproduct; and
``(B) shall obtain not less than existing market terms and
conditions.''.
SEC. 102. OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS.
(a) In General.--Title II of the Department of Energy
Organization Act (7 U.S.C. 7131 et seq.) is amended by adding
at the end the following:
``SEC. 217. OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS.
``(a) Establishment.--
``(1) In general.--There is established within the
Department an Office of Indian Energy Policy and Programs
(referred to in this section as the `Office').
``(2) Director.--The Office shall be headed by a Director,
who shall be--
``(A) appointed by the Secretary; and
``(B) compensated at a rate equal to that of level IV of
the Executive Schedule under section 5315 of title 5, United
States Code.
``(b) Duties of Director.--The Director shall--
``(1) in accordance with Federal policies for the promotion
of tribal sovereignty and self-determination, provide,
direct, foster, coordinate, and implement energy planning,
education, management, conservation, and delivery programs of
the Department that--
``(A) promote tribal energy efficiency and use;
``(B) modernize and develop, for the benefit of Indian
tribes, tribal energy and economic infrastructure relating to
natural resource development and electrification;
``(C) lower or stabilize energy costs; and
``(D) electrify tribal land and the homes of tribal
members; and
``(2) carry out the duties assigned to the Secretary or the
Director under title XXVI of the Energy Policy Act of 1992
(25 U.S.C. 3501 et seq.).''.
(b) Conforming Amendments.--
(1) Authorization of appropriations.--Section 2603 of the
Energy Policy Act of 1992 (25 U.S.C. 3503) is amended by
striking subsection (c) and inserting the following:
``(c) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary to carry out this section
$10,000,000 for each of fiscal years 2003 through 2010.''.
(2) Table of contents.--The table of contents of the
Department of Energy Organization Act (42 U.S.C. prec. 7101)
is amended--
(A) in the item relating to section 209, by striking
``Section'' and inserting ``Sec.''; and
(B) by striking the items relating to sections 213 through
216 and inserting the following:
``Sec. 213. Establishment of policy for National Nuclear Security
Administration.
``Sec. 214. Establishment of security, counterintelligence, and
intelligence policies.
``Sec. 215. Office of Counterintelligence.
``Sec. 216. Office of Intelligence.
``Sec. 217. Office of Indian Energy Policy and Programs.''.
(3) Executive schedule.--Section 5315 of title 5, United
States Code, is amended by inserting ``Director, Office of
Indian Energy Policy and Programs, Department of Energy.''
after ``Inspector General, Department of Energy.''.
SEC. 103. SITING OF ENERGY FACILITIES ON TRIBAL LAND.
(a) Definitions.--In this section:
(1) Indian tribe.--
(A) In general.--The term ``Indian tribe'' means any Indian
tribe, band, nation, or other organized group or community
that is recognized as being eligible for the special programs
and services provided by the United States to Indians because
of their status as Indians.
(B) Exclusions.--The term ``Indian tribe'' does not include
any Regional Corporation or Native Corporation (as those
terms are defined in section 3 of the Alaska Native Claims
Settlement Act (43 U.S.C. 1602)).
(2) Interested party.--The term ``interested party'' means
a State or other person the interests of which could be
adversely affected by a decision of an Indian tribe to grant
a lease or right-of-way in accordance with to this section.
(3) Petition.--The term ``petition'' means a written
request submitted to the Secretary for the review of an
action (including inaction) of an Indian tribe that is
claimed to be in violation of tribal regulations approved
under subsection (f).
(4) Reservation.--The term ``reservation'' means--
(A) with respect to a reservation in a State other than the
State of Oklahoma, all land that has been set aside or that
has been acknowledged as having been set aside by the United
States for the use of an Indian tribe, the exterior
boundaries of which are more particularly defined in a final
tribal treaty, agreement, executive order, Federal statute,
secretarial order, or judicial determination; and
(B) with respect to a reservation in the State of Oklahoma,
all land that is--
(i) within the jurisdictional area of an Indian tribe; and
(ii) within the boundaries of the last reservation of the
Indian tribe that was established by treaty, executive order,
or secretarial order.
(5) Secretary.--The term `Secretary' means the Secretary of
the Interior.
(6) Tribal land.--The term `tribal land' means any--
(A) tribal trust land; or
(B) other land owned by an Indian tribe that is located
within the reservation of the Indian tribe.
(b) Leases Involving Electric Generation, Transmission,
Distribution, or Processing Facilities.--
(1) In general.--An Indian tribe may grant a lease of
tribal land for--
(A) an electric generation, transmission, or distribution
facility; or
(B) a facility to refine or otherwise process renewable or
nonrenewable energy resources developed on tribal land.
(2) Approval not required.--A lease described in paragraph
(1) shall not require the approval of the Secretary if--
(A) the lease is executed under tribal regulations approved
by the Secretary under this subsection; and
(B) the term of the lease does not exceed 30 years.
(c) Rights-of-Way for Electric Generation, Transmission,
Distribution, or Processing Facilities.--An Indian tribe may
grant a right-of-way over tribal land for a pipeline or an
electric transmission or distribution line without separate
approval by the Secretary if--
(1) the right-of-way is executed under and complies with
tribal regulations approved by the Secretary;
(2) the term of the right-of-way does not exceed 30 years;
and
(3) the pipeline or electric transmission or distribution
line serves--
(A) an electric generation, transmission or distribution
facility located on tribal land; or
(B) a facility located on tribal land that refines or
otherwise processes renewable or nonrenewable energy
resources developed on tribal land.
(d) Validity of Leases and Rights-of-Way.--No lease or
right-of-way granted under this section shall be valid unless
authorized in compliance with applicable tribal regulations
approved under subsection (f).
(e) Renewals.--Leases or rights-of-way entered into under
this section may be renewed at the discretion of the Indian
tribe making the grant of the lease or right-of-way in
accordance with this section.
(f) Tribal Regulation Requirements.--
(1) In general.--The Secretary shall approve or disapprove
tribal regulations required under this subsection.
(2) Conditions for approval.--The Secretary shall approve
tribal regulations described in paragraph (1) if the
Secretary determines that the regulations--
(A) are comprehensive in nature;
(B) include provisions that address--
(i) securing necessary information from the lessee or
right-of-way applicant;
(ii) the term of any conveyance;
(iii) amendments and renewals;
(iv) consideration for a lease or right-of-way;
(v) technical or other relevant requirements;
(vi) requirements for environmental review as described in
paragraph (3);
(vii) requirements for complying with all applicable
environmental laws;
(viii) the identification of final approval authority; and
(ix) the provision of public notification of final
approvals; and
(C) establish a process for consultation with any affected
States concerning potential off-reservation impacts
associated with
[[Page S2542]]
a lease or right-of-way proposed to be granted.
(3) Environmental review process.--An Indian tribe shall
establish an environmental review process that includes--
(A) an identification and evaluation of all significant
environmental impacts of the proposed action as compared to a
no action alternative;
(B) identification of proposed mitigation;
(C) a process for ensuring that the public is informed of
and has an opportunity to comment on the proposed action
prior to tribal approval of the lease or right-of-way; and
(D) sufficient administrative support and technical
capability to carry out the environmental review process.
(4) Period for approval or disapproval.--
(A) In general.--Not later than 270 days after the date of
submission by an Indian tribe to the Secretary of tribal
regulations under this subsection, the Secretary--
(i) may provide notice and an opportunity for public
comment on the regulations; and
(ii) shall approve or disapprove the regulations.
(B) Form of disapproval.--Any disapproval by the Secretary
of tribal regulations described in subparagraph (A) shall be
accompanied by--
(i) written documentation that describes the basis for the
disapproval; and
(ii) a description of changes or other actions required to
address concerns of the Secretary.
(C) Extension.--The Secretary may extend the deadline
specified in subparagraph (A) for an Indian tribe after
consultation with the Indian tribe.
(5) Duties of indian tribe.--If an Indian tribe executes a
lease or right-of-way in accordance with tribal regulations
required under this subsection, the Indian tribe shall
provide to the Secretary--
(A) a copy of the lease or right-of-way document (including
all amendments and renewals to the lease or document); and
(B) in the case of tribal regulations or a lease or right-
of-way that permits payment to be made directly to the Indian
tribe, documentation of the payments sufficient to enable the
Secretary to discharge the trust responsibility of the United
States as appropriate under applicable law.
(6) No liability for losses.--The United States shall not
be liable for any loss sustained by any party (including any
Indian tribe or member of an Indian tribe) to a lease
executed in accordance with tribal regulations under this
subsection.
(7) Violations.--
(A) Petitions.--
(i) In general.--An interested party may, after exhaustion
of tribal remedies, submit to the Secretary, in a timely
manner, a petition for the review of compliance of an Indian
tribe with any tribal regulations approved under this
subsection.
(ii) Deadline for conduct of review.--The Secretary shall
conduct any such review under clause (i) as the Secretary
determines to be necessary not later than 90 days after the
date of receipt of a petition described in clause (i).
(B) Determination of violation.--If, on completion of a
review of tribal regulations under subparagraph (A), the
Secretary determines that the regulations were violated, the
Secretary may take such action as the Secretary determines to
be necessary to remedy the violation, including--
(i) rescinding or holding any applicable lease or right-of-
way in abeyance until the violation is cured; and
(ii)(I) rescinding the approval of the tribal regulations;
and
(II) reassuming responsibility for approval of leases or
rights-of-way associated with the facilities covered by those
leases or rights-of-way.
(C) Actions of secretary.--If the Secretary seeks to remedy
a violation described in subparagraph (A), the Secretary
shall--
(i) make a written determination with respect to the
regulations that have been violated;
(ii) provide to the applicable Indian tribe a written
notice of the violation and a copy of the written
determination described in clause (i); and
(iii) prior to the exercise of any remedy or the rescission
of the approval of the regulations involved and reassumption
of responsibility for approval of any lease or right-of-way,
provide for the Indian tribe a hearing and a reasonable
opportunity to cure the alleged violation.
(D) Appeal.--An Indian tribe that is determined by the
Secretary under this paragraph to have violated tribal
regulations under this subsection shall retain all rights to
appeal as provided by regulations promulgated by the
Secretary.
(g) Agreements.--
(1) In general.--An agreement between an Indian tribe and a
business entity that is directly associated with the
development of an electric generation, transmission, or
distribution facility, or a facility to refine or otherwise
process renewable or nonrenewable energy resources developed
on tribal land, shall not require the separate approval of
the Secretary in accordance with section 2103 of the Revised
Statutes (25 U.S.C. 81) if the activity that is the subject
of the agreement has been the subject of an environmental
review process under subsection (f)(3).
(2) No liability for loss.--The United States shall not be
liable for any loss sustained by any party (including any
Indian tribe or member of an Indian tribe) associated with an
agreement entered into under this subsection.
(h) No Effect on Other Law.--Nothing in this section
modifies or otherwise affects the applicability of any
provision of--
(1) the Act of May 11, 1938 (commonly known as the ``Indian
Mineral Leasing Act of 1938'') (25 U.S.C. 396a et seq.);
(2) the Indian Mineral Development Act of 1982 (25 U.S.C.
2101 et seq.);
(3) the Surface Mining Control and Reclamation Act of 1977
(30 U.S.C. 1201 et seq.); or
(4) any environmental law of the United States.
SEC. 104. INDIAN MINERAL DEVELOPMENT REVIEW.
(a) In General.--The Secretary of the Interior shall
conduct a review of the activities that, as of the date of
enactment of this Act, have been carried out by governments
of Indian tribes under the Indian Mineral Development Act of
1982 (25 U.S.C. 2101 et seq.).
(b) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary of the Interior shall
submit to the Committee on Indian Affairs and the Committee
on Energy and Natural Resources of the Senate and the
Committee on Resources of the House of Representatives a
report that describes--
(1) the results of the review;
(2) recommendations to ensure that Indian tribes have the
opportunity to develop nonrenewable energy resources; and
(3) an analysis of the barriers to the development of
energy resources on Indian land, including Federal policies
and regulations and recommendations regarding the removal of
those barriers.
(c) Consultation.--In developing the report and
recommendations under this section, the Secretary of the
Interior shall consult with Indian tribes on a government-to-
government basis.
SEC. 105. RENEWABLE ENERGY STUDY.
(a) In General.--Not later than 2 years after the date of
enactment of this Act, and once every 2 years thereafter, the
Secretary shall submit to the Committee on Energy and Natural
Resources and the Committee on Indian Affairs of the Senate
and the Committee on Energy and Commerce and the Committee on
Resources of the House of Representatives a report that--
(1) describes energy consumption and renewable energy
development potential on Indian land;
(2) identifies barriers to the development of renewable
energy by Indian tribes, including Federal policies and
regulations; and
(3) makes recommendations regarding the removal of those
barriers.
(b) Consultation.--In developing the report and
recommendations under this section, the Secretary shall
consult with Indian tribes on a government-to-government
basis.
SEC. 106. FEDERAL POWER MARKETING ADMINISTRATIONS.
Title XXVI of the Energy Policy Act of 1992 (25 U.S.C. 3501
et seq.) (as amended by section 101) is amended by adding at
the end the following:
``SEC. 2608. FEDERAL POWER MARKETING ADMINISTRATIONS.
``(a) Definitions.--In this section:
``(1) Administrator.--The term `Administrator' means--
``(A) the Administrator of the Bonneville Power
Administration; and
``(B) the Administrator of the Western Area Power
Administration.
``(2) Power marketing administration.--The term `power
marketing administration' means--
``(A) the Bonneville Power Administration;
``(B) the Western Area Power Administration; and
``(C) any other power administration the power allocation
of which is used by or for the benefit of an Indian tribe
located in the service area of the administration.
``(b) Encouragement of Indian Tribal Energy Development.--
Each Administrator shall encourage Indian tribal energy
development by taking such actions as are appropriate,
including administration of programs of the Bonneville Power
Administration and the Western Area Power Administration, in
accordance with this section.
``(c) Action by the Administrator.--In carrying out this
section--
``(1) each Administrator shall consider the unique
relationship that exists between the Federal Government and
Indian tribes;
``(2) power allocations from the Western Area Power
Administration to Indian tribes may be used to firm Indian-
owned renewable energy projects for delivery of loads located
on Indian land; and
``(3) the Administrator of the Western Area Power
Administration may purchase renewable or nonrenewable power
from Indian tribes to meet the firming requirements of the
Western Area Power Administration.
``(d) Assistance for Transmission System Use.--
``(1) In general.--An Administrator may provide technical
assistance to Indian tribes seeking to use the high-voltage
transmission system for delivery of electric power.
``(2) Costs.--The costs of technical assistance provided
under paragraph (1) shall be funded--
``(A) by the Administrator using nonreimbursable funds
appropriated for that purpose; or
``(B) by the applicable Indian tribes.
``(3) Priority for assistance for transmission studies.--In
providing discretionary
[[Page S2543]]
assistance to Indian tribes under paragraph (1), each
Administrator shall give priority in funding to Indian tribes
that have limited financial capability to acquire that
assistance.
``(e) Power Allocation Study.--
``(1) In general.--Not later than 2 years after the date of
enactment of this section, the Secretary of Energy shall
submit to the Committee on Energy and Natural Resources and
the Committee on Indian Affairs of the Senate and the
Committee on Energy and Commerce and the Committee on
Resources of the House of Representatives a report that--
``(A) describes the use by Indian tribes of Federal power
allocations of the Western Area Power Administration (or
power sold by the Southwestern Power Administration) and the
Bonneville Power Administration to or for the benefit of
Indian tribes in service areas of those administrations; and
``(B) identifies--
``(i) the quantity of power allocated to Indian tribes by
the Western Area Power Administration;
``(ii) the quantity of power sold to Indian tribes by other
power marketing administrations; and
``(iii) barriers that impede tribal access to and use of
Federal power, including an assessment of opportunities--
``(I) to remove those barriers; and
``(II) improve the ability of power marketing
administrations to facilitate the use of Federal power by
Indian tribes.
``(2) Consultation.--In developing the report under
paragraph (1), each power marketing administration shall
consult with Indian tribes on a government-to-government
basis.
``(f) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary of Energy to carry out
this section $750,000 for each of fiscal years 2003 through
2013.''.
SEC. 107. FEASIBILITY STUDY FOR COMBINED WIND AND HYDROPOWER
DEMONSTRATION PROJECT.
(a) Study.--The Secretary, in coordination with the
Secretary of the Army and the Secretary of the Interior,
shall conduct a study of the cost and feasibility of
developing a demonstration project that would use wind energy
generated by Indian tribes and hydropower generated by the
Army Corps of Engineers on the Missouri River to supply
firming power to the Western Area Power Administration.
(b) Scope of Study.--The study shall--
(1) determine the feasibility of the blending of wind
energy and hydropower generated from the Missouri River dams
operated by the Army Corps of Engineers;
(2) review historical purchase requirements and projected
purchase requirements for firming and the patterns of
availability and use of firming energy;
(3) assess the wind energy resource potential on tribal
land and projected cost savings through a blend of wind and
hydropower over a 30-year period;
(4) include a preliminary interconnection study and a
determination of resource adequacy of the Upper Great Plains
Region of the Western Area Power Administration;
(5) determine seasonal capacity needs and associated
transmission upgrades for integration of tribal wind
generation; and
(6) include an independent tribal engineer as a study team
member.
(c) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary and Secretary of the
Army shall submit to Congress a report that describes the
results of the study, including--
(1) an analysis of the potential energy cost savings to the
customers of the Western Area Power Administration through
the blend of wind and hydropower;
(2) an evaluation of whether a combined wind and hydropower
system can reduce reservoir fluctuation, enhance efficient
and reliable energy production, and provide Missouri River
management flexibility;
(3) recommendations for a demonstration project that could
be carried out by the Western Area Power Administration in
partnership with an Indian tribal government or tribal
government energy consortium to demonstrate the feasibility
and potential of using wind energy produced on Indian land to
supply firming energy to the Western Area Power
Administration or any other Federal power marketing agency;
and
(4) an identification of--
(A) the economic and environmental benefits to be realized
through such a Federal-tribal partnership; and
(B) the manner in which such a partnership could contribute
to the energy security of the United States.
(d) Consultation.--In developing the report and
recommendations under this section, the Secretary and the
Secretary of the Army shall consult with applicable Indian
tribes on a government-to-government basis.
(e) Funding.--
(1) Authorization of appropriations.--There is authorized
to be appropriated to carry out this section $500,000, to
remain available until expended.
(2) Nonreimbursability of costs.--All costs incurred by the
Western Area Power Administration in carrying out this
section shall be nonreimbursable.
SEC. 108. TRANSMISSION LINE DEMONSTRATION PROJECT.
The Dine Power Authority, an enterprise of the Navajo
Nation, shall be eligible to receive grants and other
assistance under the demonstration program authorized by
section 2603 of the Energy Policy Act of 1992 (25 U.S.C.
3503) for activities associated with the development of a
transmission line from the Four Corners Area to southern
Nevada, including related power generation opportunities.
TITLE II--RENEWABLE ENERGY AND RURAL CONSTRUCTION GRANTS
SEC. 201. RENEWABLE ENERGY PRODUCTION INCENTIVE.
(a) Incentive Payments.--Section 1212(a) of the Energy
Policy Act of 1992 (42 U.S.C. 13317(a)) is amended in the
third and fourth sentences by striking ``payment and which
satisfies'' and all that follows through ``Secretary shall
establish.'' and inserting the following: ``payment. The
Secretary shall establish other procedures necessary for
efficient administration of the program. The Secretary shall
not establish any criteria or procedures that have the effect
of assigning to proposals a higher or lower priority for
eligibility or allocation of appropriated funds on the basis
of the energy source proposed.''.
(b) Qualified Renewable Energy Facility.--Section 1212(b)
of the Energy Policy Act of 1992 (42 U.S.C. 13317(b)) is
amended--
(1) by striking ``a State or any political'' and all that
follows through ``nonprofit electrical cooperative'' and
inserting the following: ``a nonprofit electrical
cooperative, a public utility, a State, territory, or
possession of the United States, the District of Columbia (or
a political subdivision of a State, territory, or possession
or the District of Columbia), or an Indian tribal government
(or subdivision of an Indian tribal government),''; and
(2) by inserting ``landfill gas, incremental hydropower,
ocean'' after ``wind, biomass,''.
(c) Eligibility Window.--Section 1212(c) of the Energy
Policy Act of 1992 (42 U.S.C. 13317(c)) is amended by
striking ``during the 10-fiscal year period beginning with
the first full fiscal year occurring after the enactment of
this section'' and inserting ``before October 1, 2013''.
(d) Payment Period.--Section 1212(d) of the Energy Policy
Act of 1992 (42 U.S.C. 13317(d)) is amended in the second
sentence by inserting ``or in which the Secretary determines
that all necessary Federal and State authorizations have been
obtained to begin construction of the facility'' after
``eligible for such payments''.
(e) Amount of Payment.--Section 1212(e)(1) of the Energy
Policy Act of 1992 (42 U.S.C. 13317(e)(1)) is amended in the
first sentence by inserting ``landfill gas, incremental
hydropower, ocean'' after ``wind, biomass,''.
(f) Termination of Authority.--Section 1212(f) of the
Energy Policy Act of 1992 (42 U.S.C. 13317(f)) is amended by
striking ``the expiration of'' and all that follows through
``of this section'' and inserting ``September 30, 2023''.
(g) Incremental Hydropower; Authorization of
Appropriations.--Section 1212 of the Energy Policy Act of
1992 (42 U.S.C. 13317) is amended by striking subsection (g)
and inserting the following:
``(g) Incremental Hydropower.--
``(1) Definition of incremental hydropower.--In this
subsection, the term `incremental hydropower' means
additional generating capacity achieved from increased
efficiency or an addition of new capacity at a hydroelectric
facility in existence on the date of enactment of this
paragraph.
``(2) Programs.--Subject to subsection (h)(2), if an
incremental hydropower program meets the requirements of this
section, as determined by the Secretary, the incremental
hydropower program shall be eligible to receive incentive
payments under this section.
``(h) Authorization of Appropriations.--
``(1) In general.--Subject to paragraph (2), there are
authorized to be appropriated such sums as are necessary to
carry out this section for each of fiscal years 2003 through
2023.
``(2) Limitation on funds used for incremental hydropower
programs.--Not more than 30 percent of the amounts made
available under paragraph (1) shall be used to carry out
programs described in subsection (g)(2).
``(3) Availability of funds.--Funds made available under
paragraph (1) shall remain available until expended.''.
TITLE III--ENERGY EFFICIENCY AND ASSISTANCE TO LOW-INCOME CONSUMERS
SEC. 301. LOW-INCOME COMMUNITY ENERGY EFFICIENCY PILOT
PROGRAM.
(a) Definition of Indian Tribe.--
(1) In general.--In this section, the term ``Indian tribe''
means any Indian tribe, band, nation, or other organized
group or community that is recognized as being eligible for
the special programs and services provided by the United
States to Indians because of their status as Indians.
(2) Inclusions.--In this section, the term ``Indian tribe''
includes an Alaskan Native village, Regional Corporation, and
Village Corporation (as defined in or established under the
Alaska Native Claims Settlement Act (43 U.S.C. 1601 et
seq.)).
(b) Grants to Local Government, Nonprofit, and Tribal
Entities.--The Secretary may provide grants to units of local
government, private, nonprofit community development
organizations, and tribal economic development entities for
use in--
(1) improving energy efficiency;
(2) identifying and developing alternative renewable and
distributed energy supplies; and
(3) increasing energy conservation in low-income rural and
urban communities.
[[Page S2544]]
(c) Competitive Grants.--In addition to grants described in
subsection (b), the Secretary may provide grants on a
competitive basis for--
(1) investments that develop alternative renewable and
distributed energy supplies;
(2) energy efficiency projects and energy conservation
programs;
(3) studies and other activities that improve energy
efficiency in low-income rural and urban communities;
(4) planning and development assistance for increasing the
energy efficiency of buildings and facilities; and
(5) technical and financial assistance to local government
and private entities on developing new renewable and
distributed sources of power or combined heat and power
generation.
(d) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section $20,000,000 for
each of fiscal years 2003 through 2005.
SEC. 302. RURAL AND REMOTE COMMUNITY ELECTRIFICATION GRANTS.
Section 313 of the Rural Electrification Act of 1936 (7
U.S.C. 940c) is amended by adding at the end the following:
``(c) Rural and Remote Communities Electrification
Grants.--
``(1) Definitions.--In this subsection:
``(A) Eligible entity.--The term `eligible entity' means--
``(i) a unit of local government of a State or Territory;
``(ii) an Indian tribe; and
``(iii) a tribal college or university.
``(B) Indian tribe.--
``(i) In general.--The term `Indian tribe' means any Indian
tribe, band, nation, or other organized group or community
that is recognized as being eligible for the special programs
and services provided by the United States to Indians because
of their status as Indians.
``(ii) Inclusions.--The term ``Indian tribe'' includes a
Alaskan Native village, Regional Corporation, and Village
Corporation (as defined in or established under the Alaska
Native Claims Settlement Act (43 U.S.C. 1601 et seq.)).
``(C) Tribal college or university.--The term `tribal
college or university' has the meaning given the term in
section 316(b)(3) of the Higher Education Act (20 U.S.C.
1059c(b)(3))).
``(2) Grants.--The Secretary, in consultation with the
Secretary of Energy and the Secretary of the Interior, may
provide to an eligible entity 1 or more grants for the
purpose of--
``(A) increasing energy efficiency;
``(B) siting or upgrading transmission and distribution
lines; or
``(C) providing or modernizing electric facilities.
``(3) Grant criteria.--The Secretary shall provide grants
under this subsection based on a determination of the most
effective and cost-efficient use of the funds to achieve the
purposes of this subsection.
``(4) Priority.--In providing grants under this subsection,
the Secretary shall give priority to renewable energy
facilities.
``(5) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $20,000,000
for each of the 7 fiscal years following the fiscal year in
which this subsection is enacted.''.
______
By Mr. DASCHLE:
S. 425. A bill to revise the boundary of the Wind Cage National Park
in the State of South Dakota; to the Committee on Energy and Natural
Resources.
Mr. DASCHLE. Mr. President, today I am introducing the Wind Cave
National Park Boundary Revision Act of 2003. The Senate unanimously
approved this legislation late last fall, but it was not considered by
the House of Representatives before Congress adjourned for the year. I
hope that my colleagues will again support this effort and that we can
see this bill signed into law.
Wind Cave National Park, located in southwestern South Dakota, is one
of the Park System's precious natural treasures and one of the Nation's
first national parks. The cave itself, after which the park is named,
is one of the world's oldest, longest and most complex cave systems,
with more than 103 miles of mapped tunnels. The cave is well known for
its exceptional display of boxwork, a rare, honeycomb-shaped formation
that protrudes from the cave's ceilings and walls. While the cave is
the focal point of the park, the land above the cave is equally
impressive, with 28,000 acres of rolling meadows, majestic forests,
creeks, and streams. As one of the few remaining mixed-grass prairie
ecostytems in the country, the park is home to abundant wildlife, such
as bison, deer, elk and birds, and is a National Game Preserve.
The Wind Cave National Park Boundary Revision Act will help expand
the park by approximately 20 percent in the southern ``keyhole''
region. This land is currently owned by a ranching family that wants to
see it protected from development and preserved for future generations.
The land is a natural extension of the park, and boasts the mixed-grass
prairie and ponderosa pine forests found in the rest of the park,
including a dramatic river canyon. The addition of this land will
enhance recreation for hikers who come for the solitude of the park's
back country. It will also protect archaeological sites, such as a
buffalo jump, over which early native Americans once drove the bison
they hunted, and improve fire management.
This plan to expand the park has strong, but not universal, support
in the surrounding community. The community's views were expressed
during a recent 60-day public comment period on the proposal. Most
South Dakotans recognize the value in expanding the park, not only to
encourage additional tourism in the Black Hills, but to permanently
protect these extraordinary lands for future generations of Americans
to enjoy. Understandably, however, some are legitimately concerned
about the potential loss of hunting opportunities and local tax
revenue.
Governor Janklow has expressed his conditional support for the park
expansion, stating that there must be no reduction in the amount of
lands with public access that can currently be hunted, that there must
be no loss of tax revenue to the county from the expansion, and that
chronic wasting disease issue must be dealt with effectively. These are
reasonable conditions that should be met as this process moves forward.
The legislation I am introducing today protects hunting opportunities
for sportsmen by excluding 880 acres of School and Public Lands
property from the expansion. In addition, Wind Cave National Park and
the Trust for Public Lands are working with interested parties to find
a way to offset the loss of local county tax revenues. Finally, I
understand that the South Dakota Game, Fish, and Parks Department has
reached an agreement with Wind Cave officials to expand research into
chronic wasting disease, which will benefit wildlife populations
nationwide. I am satisfied that the legitimate concerns about the
potential expansion have been effectively addressed and today am moving
forward to begin the legislative phase of this process.
In conclusion, Wind Cave National Park has been a valued American
treasure for nearly 100 years. We have an opportunity with this
legislation to expand the park and enhance its value to the public so
that visitors will enjoy it even more during the next 100 years. It is
my hope that my colleagues will again support this expansion of the
park and pass this legislation in the near future.
I ask unanimous consent that the text of the legislation be printed
in the Record.
Mr. INOUYE. Mr. President, I am pleased to join the distinguished
former Chairman of the Committee on Energy and Natural Resources as an
original co-sponsor of the Tribal Energy Self-Sufficiency Act.
This measure reflects the work of the House and Senate conferees on
the comprehensive energy legislation in the last session of the
Congress--the tribal provisions of the bill were approved by the
conferees and it is those provisions which comprise the measure we
introduce today.
We believe that the enactment of this measure will afford tribal
governments the necessary authorizations and resources that they need
to develop energy resources on their lands and thereby make a
significant contribution to the Nation's energy needs.
We encourage our colleagues to support this measure as they did in
the last session of the Congress.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 425
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Wind Cave National Park
Boundary Revision Act of 2003''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Map.--The term ``map'' means the map entitled ``Wind
Cave National Park Boundary Revision'', numbered 108/80,030,
and dated June 2002.
(2) Park.--The term ``Park'' means the Wind Cave National
Park in the State.
(3) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
[[Page S2545]]
(4) State.--The term ``State'' means the State of South
Dakota.
SEC. 3. LAND ACQUISITION.
(a) Authority.--
(1) In general.--The Secretary may acquire the land or
interest in land described in subsection (b)(1) for addition
to the Park.
(2) Means.--An acquisition of land under paragraph (1) may
be made by donation, purchase from a willing seller with
donated or appropriated funds, or exchange.
(b) Boundary.--
(1) Map and acreage.--The land referred to in subsection
(a)(1) shall consist of approximately 5,675 acres, as
generally depicted on the map.
(2) Availability of map.--The map shall be on file and
available for public inspection in the appropriate offices of
the National Park Service.
(3) Revision.--The boundary of the Park shall be adjusted
to reflect the acquisition of land under subsection (a)(1).
SEC. 4. ADMINISTRATION.
(a) In General.--The Secretary shall administer any land
acquired under section 3(a)(1) as part of the Park in
accordance with laws (including regulations) applicable to
the Park.
(b) Transfer of Administrative Jurisdiction.--
(1) In general.--The Secretary shall transfer from the
Director of the Bureau of Land Management to the Director of
the National Park Service administrative jurisdiction over
the land described in paragraph (2).
(2) Map and acreage.--The land referred to in paragraph (1)
consists of the approximately 80 acres of land identified on
the map as ``Bureau of Land Management land''.
SEC. 5. GRAZING.
(a) Grazing Permitted.--Subject to any permits or leases in
existence as of the date of acquisition, the Secretary may
permit the continuation of livestock grazing on land acquired
under section 3(a)(1).
(b) Limitation.--Grazing under subsection (a) shall be at
not more than the level existing on the date on which the
land is acquired under section 3(a)(1).
(c) Purchase of Permit or Lease.--The Secretary may
purchase the outstanding portion of a grazing permit or lease
on any land acquired under section 3(a)(1).
(d) Termination of Leases or Permits.--The Secretary may
accept the voluntary termination of a permit or lease for
grazing on any acquired land.
______
By Mr. DASCHLE:
S. 426. A bill to direct the Secretary of the Interior to convey
certain parcels of land acquired for the Blunt Reservoir and Pierre
Canal features of the initial stage of the Oahe Unit, James Division,
South Dakota, to the Commission of Schools and Public Lands and the
Department of Game, Fish, and Parks of the Stat of South Dakota for the
purpose of mitigating lost wildlife habitat, on the condition that the
current preferential leaseholders shall have an option to purchase the
parcels from the Commission, and for other purposes; to the Committee
on Energy and Natural Resources.
Mr. DASCHLE. Mr. President, today I am introducing the Blunt
Reservoir and Pierre Canal Land Conveyance Act of 2003. This proposal
is the culmination of more than 4 years of discussion with local
landowners, the South Dakota Water Congress, the U.S. Bureau of
Reclamation, local legislators, representatives of South Dakota
sportsmen groups and affected citizens. It lays out a plan to convey
certain parcels of land acquired for the Blunt Reservoir and Pierre
Canal features of the Oahe Irrigation Project in South Dakota to the
Commission of School and Public Lands of the State of South Dakota for
the purpose of mitigating lost wildlife habitat, and provides the
option to preferential leaseholders to purchase their original parcels
from the Commission.
The bill I'm introducing today is the result of consultations with
the Energy and Natural Resources Committee when it considered the bill
last July. The committee incorporated changes to the legislation that
will ensure a smooth transition of land from federal to private
ownership, increase county tax revenues, as well as provide the tools
and future funding necessary to help the state of South Dakota improve
wildlife habitat and public hunting opportunities. The Senate
unanimously approved this legislation late last fall, but it was not
considered by the House of Representatives before Congress adjourned
for the year. I hope that my colleagues will once again support this
effort, and that we can see this bill signed into law.
To more fully understand the issues addressed by the legislation, it
is necessary to review some of the history related to the Oahe Unit of
the Missouri River Basin project in South Dakota.
The Oahe Unit was originally approved part of the overall plan for
water development in the Missouri River Basin that was incorporated in
the Flood Control Act of 1944. Subsequently, Public Law 90-453
authorized construction and operation of the initial stage of this
unit. The purposes of the Oahe Unit, as authorized, were to provide for
the immigration of 190,000 acres of farmland, conserve and enhance fish
and wildlife habitat, promote recreation and meet other important
goals.
The project came to be known as the Oahe Irrigation Project. The
principal features of the initial stage of the project included the
Oahe pumping plant, located near Oahe Dam, to pump water from the Oahe
Reservoir; a system of main canals, including the Pierre Canal, running
east from the Oahe Reservoir; and, the establishment of regulating
reservoirs, including the Blunt Dam and Reservoir, located
approximately 35 miles east Pierre, SD.
Under the authorizing legislation, 42,155 acres were to be acquired
by the Federal Government in order to construct and operate the Blunt
Reservoir feature of the Oahe Irrigation Project. Land acquisition for
the proposed Blunt Reservoir feature began in 1972 and continued
through 1977. A total of 17,878 acres usually were acquired from
willing sellers.
The first land for the Pierre Canal feature was purchased in July
1975 and included the 1.3 miles of Reach 1B. An additional 21-mile
reach was acquired from 1976 through 1977, also from willing sellers.
Organized opposition to the Oahe Irrigation Project surfaced in 1973
and continued to build until a series of public meetings were held in
1977 to determine if the project should continue. In late 1977, the
Oahe project was made a part of Presidents Carter's Federal Water
Project review process.
The Oahe project construction was then halted on September 30, 1977,
when Congress did not include funding in the fiscal year 1978
appropriations. Thus, all major construction contract activities
ceased, and land acquisition was halted.
The Oahe Project remained an authorized water project with a bleak
future and minimal chances of being completed as authorized.
Consequently, the Department of Interior, through the Bureau of
Reclamation, gave those persons who willingly had sold their lands to
the project, and their descendants, the right to lease those lands and
use them as they had in the past until they were needed by the Federal
Government for project purposes.
During the period from 1978 until the present, the Bureau of
Reclamation has administered these lands on a preferential lease basis
for those original landowners or their descendants, and on a non-
preferential basis for lands under lease to persons who were not
preferential leaseholders. Currently, the Bureau of Reclamation
administers 12,978 acres as preferential leases and 4,304 acres as non-
preferential leases in the Blunt Reservoir.
As I noted previously, the Oahe Irrigation Project is related
directly to the overall project purposes of the Pick-Sloan Missouri
Basin program authorized under the Flood Control Act of 1944. Under
this program, the U.S. Army Corps of Engineers constructed four major
dams across the Missouri River in South Dakota. The two largest
reservoirs formed by these dams, Oahe Reservoir and Sharpe Reservoir,
cause the loss of approximately 221,000 acres of fertile, wooded
bottomland that constituted some of the most productive, unique and
irreplaceable wildlife habitat in the State of South Dakota. This
included habitat for both game and non-game species, including several
species now listed as threatened or endangered. Meriwether Lewis, while
traveling up the Missouri River in 1804 on his famous expedition, wrote
in his diary, ``Song birds, game species and furbearing animals abound
here in numbers like none of the party has ever seen. The bottomlands
and cottonwood trees provide a shelter and food for a great variety of
species, all laying their claim to the river bottom.''
Under the provisions of the Wildlife Coordination Act of 1958, the
State of South Dakota has developed a plan to mitigate a part of this
lost wildlife habitat as authorized by Section 602 of Title VI of
Public Law 105-277, October 21, 1998, known as the Cheyenne River Sioux
Tribe, Lower Brule Sioux Tribe,
[[Page S2546]]
and State of South Dakota Terrestrial Wildlife Habitat Restoration Act.
The State's habitat mitigation plan has received the necessary approval
and interim funding authorizations under Sections 602 and 609 of Title
VI.
The State's habitat mitigation plan requires the development of
approximately 27,000 acres of wildlife habitat in South Dakota.
Transferring the 4,304 acres of non-preferential lease lands in the
Blunt Reservoir feature to the South Dakota Department of Game, Fish
and Parks would constitute a significant step toward satisfying the
habitat mitigation obligation owed to the state by the Federal
Government and as agreed upon by the U.S. Army Corps of Engineers, the
U.S. Fish and Wildlife Service, and the South Dakota Department of
Game, Fish and Parks.
As we developed this legislation, many meetings occurred among the
local landowners, South Dakota Department of Game, Fish and Parks,
business owners, local legislators, the Bureau of Reclamation, as well
as representatives of sportsmen groups. It became apparent that the
best solution for the local economy, tax base and wildlife mitigation
issues would be to allow former Blunt Reservoir and Pierre Canal
landowners to repurchase their former lands, on which they currently
hold preferential leases, from the Bureau of Reclamation, BOR. The bill
also will transfer non-preferentially-leased lands and unleased lands
to the South Dakota Department of Game, Fish, and Parks, GFP, as part
of its broader plan to restore wildlife habitat that was lost due to
the construction of the Missouri River dams. Under the provisions
agreed to by the Senate Energy and Natural Resources Committee last
summer, the South Dakota Commission of School and Public Lands would be
responsible for working out the terms for selling the preferentially-
leased lands to the former landowners.
The bill will not only rightfully return property to South Dakotans,
but also ensure the viability of the local land and tax bases. The
legislation authorizes the creation of a trust fund that would be used
to create a trust fund to pay the local taxes on those lands
transferred to State. The trust fund would be through future
appropriations by Congress.
The State of South Dakota, the Federal Government, the original
landowners, the sportsmen and wildlife will benefit from this bill. It
provides for a fair and just resolution to the private property and
environmental problems caused by the Oahe Irrigation Project some 25
years ago. We have waited long enough to right some of the wrongs
suffered by our landowners and South Dakota's wildlife resources.
Again, I am hopeful the Senate will act quickly on this legislation.
Our goal is to enact a bill that will allow meaningful wildlife habitat
mitigation to begin, give certainty to local landowners who sacrificed
their lands for a defunct federal project they once supported, ensure
the viability of the local land base and tax base, and provide well
maintained and managed recreation areas for sportsmen.
I ask unanimous consent that the text of the legislation be printed
in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 426
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Blunt Reservoir and Pierre
Canal Land Conveyance Act of 2003''.
SEC. 2. BLUNT RESERVOIR AND PIERRE CANAL.
(a) Definitions.--In this section:
(1) Blunt reservoir feature.--The term ``Blunt Reservoir
feature'' means the Blunt Reservoir feature of the Oahe Unit,
James Division, authorized by the Act of August 3, 1968 (82
Stat. 624), as part of the Pick-Sloan Missouri River Basin
program.
(2) Commission.--The term ``Commission'' means the
Commission of Schools and Public Lands of the State.
(3) Nonpreferential lease parcel.--The term
``nonpreferential lease parcel'' means a parcel of land
that--
(A) was purchased by the Secretary for use in connection
with the Blunt Reservoir feature or the Pierre Canal feature;
and
(B) was considered to be a nonpreferential lease parcel by
the Secretary as of January 1, 2001, and is reflected as such
on the roster of leases of the Bureau of Reclamation for
2001.
(4) Pierre canal feature.--The term ``Pierre Canal
feature'' means the Pierre Canal feature of the Oahe Unit,
James Division, authorized by the Act of August 3, 1968 (82
Stat. 624), as part of the Pick-Sloan Missouri River Basin
program.
(5) Preferential leaseholder.--The term ``preferential
leaseholder'' means a person or descendant of a person that
held a lease on a preferential lease parcel as of January 1,
2001, and is reflected as such on the roster of leases of the
Bureau of Reclamation for 2001.
(6) Preferential lease parcel.--The term ``preferential
lease parcel'' means a parcel of land that--
(A) was purchased by the Secretary for use in connection
with the Blunt Reservoir feature or the Pierre Canal feature;
and
(B) was considered to be a preferential lease parcel by the
Secretary as of January 1, 2001, and is reflected as such on
the roster of leases of the Bureau of Reclamation for 2001.
(7) Secretary.--The term ``Secretary'' means the Secretary
of the Interior, acting through the Commissioner of
Reclamation.
(8) State.--The term ``State'' means the State of South
Dakota, including a successor in interest of the State.
(9) Unleased parcel.--The term ``unleased parcel'' means a
parcel of land that--
(A) was purchased by the Secretary for use in connection
with the Blunt Reservoir feature or the Pierre Canal feature;
and
(B) is not under lease as of the date of enactment of this
Act.
(b) Deauthorization.--The Blunt Reservoir feature is
deauthorized.
(c) Acceptance of Land and Obligations.--
(1) In general.--As a condition of each conveyance under
subsections (d)(5) and (e), respectively, the State shall
agree to accept--
(A) in ``as is'' condition, the portions of the Blunt
Reservoir Feature and the Pierre Canal Feature that pass into
State ownership;
(B) any liability accruing after the date of conveyance as
a result of the ownership, operation, or maintenance of the
features referred to in subparagraph (A), including liability
associated with certain outstanding obligations associated
with expired easements, or any other right granted in, on,
over, or across either feature; and
(C) the responsibility that the Commission will act as the
agent for the Secretary in administering the purchase option
extended to preferential leaseholders under subsection (d).
(2) Responsibilities of the state.--An outstanding
obligation described in paragraph (1)(B) shall inure to the
benefit of, and be binding upon, the State.
(3) Oil, gas, mineral and other outstanding rights.--A
conveyance to the State under subsection (d)(5) or (e) or a
sale to a preferential leaseholder under subsection (d) shall
be made subject to--
(A) oil, gas, and other mineral rights reserved of record,
as of the date of enactment of this Act, by or in favor of a
third party; and
(B) any permit, license, lease, right-of-use, or right-of-
way of record in, on, over, or across a feature referred to
in paragraph (1)(A) that is outstanding as to a third party
as of the date of enactment of this Act.
(4) Additional conditions of conveyance to state.--A
conveyance to the State under subsection (d)(5) or (e) shall
be subject to the reservations by the United States and the
conditions specified in section 1 of the Act of May 19, 1948
(chapter 310; 62 Stat. 240), as amended (16 U.S.C. 667b), for
the transfer of property to State agencies for wildlife
conservation purposes.
(d) Purchase Option.--
(1) In General.--A preferential leaseholder shall have an
option to purchase from the Commission, acting as an agent
for the Secretary, the preferential lease parcel that is the
subject of the lease.
(2) Terms.--
(A) In general.--Except as provided in subparagraph (B), a
preferential leaseholder may elect to purchase a parcel on
one of the following terms:
(i) Cash purchase for the amount that is equal to--
(I) the value of the parcel determined under paragraph (4);
minus
(II) ten percent of that value.
(ii) Installment purchase, with 10 percent of the value of
the parcel determined under paragraph (4) to be paid on the
date of purchase and the remainder to be paid over not more
than 30 years at 3 percent annual interest.
(B) Value under $10,000.--If the value of the parcel is
under $10,000, the purchase shall be made on a cash basis in
accordance with subparagraph (A)(i).
(3) Option exercise period.--
(A) In general.--A preferential leaseholder shall have
until the date that is 5 years after enactment of this Act to
exercise the option under paragraph (1).
(B) Continuation of leases.--Until the date specified in
subparagraph (A), a preferential leaseholder shall be
entitled to continue to lease from the Secretary the parcel
leased by the preferential leaseholder under the same terms
and conditions as under the lease, as in effect as of the
date of enactment of this Act.
(4) Valuation.--
(A) In general.--The value of a preferential lease parcel
shall be its fair market value for agricultural purposes
determined by an independent appraisal, exclusive of the
[[Page S2547]]
value of private improvements made by the leaseholders while
the land was federally owned before the date of the enactment
of this Act, in conformance with the Uniform Appraisal
Standards for Federal Land Acquisition.
(B) Fair market value.--Any dispute over the fair market
value of a property under subparagraph (A) shall be resolved
in accordance with section 2201.4 of title 43, Code of
Federal Regulations.
(5) Conveyance to the state.--
(A) In general.--If a preferential leaseholder fails to
purchase a parcel within the period specified in paragraph
(3)(A), the Secretary shall convey the parcel to the State of
South Dakota Department of Game, Fish, and Parks.
(B) Wildlife habitat mitigation.--Land conveyed under
subparagraph (A) shall be used by the South Dakota Department
of Game, Fish, and Parks for the purpose of mitigating the
wildlife habitat that was lost as a result of the development
of the Pick-Sloan project.
(6) Use of proceeds.--Proceeds of sales of land under this
Act shall be deposited as miscellaneous funds in the Treasury
and such funds shall be made available, subject to
appropriations, to the State for the establishment of a trust
fund to pay the county taxes on the lands received by the
State Department of Game, Fish, and Parks under the bill.
(e) Conveyance of Nonpreferential Lease Parcels and
Unleased Parcels.--
(1) Conveyance by secretary to state.--
(A) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall convey to the
South Dakota Department of Game, Fish, and Parks the
nonpreferential lease parcels and unleased parcels of the
Blunt Reservoir and Pierre Canal.
(B) Wildlife habitat mitigation.--Land conveyed under
subparagraph (A) shall be used by the South Dakota Department
of Game, Fish, and Parks for the purpose of mitigating the
wildlife habitat that was lost as a result of the development
of the Pick-Sloan project.
(2) Land exchanges for nonpreferential lease parcels and
unleased parcels.--
(A) In general.--With the concurrence of the South Dakota
Department of Game, Fish, and Parks, the South Dakota
Commission of Schools and Public Lands may allow a person to
exchange land that the person owns elsewhere in the State for
a nonpreferential lease parcel or unleased parcel at Blunt
Reservoir or Pierre Canal, as the case may be.
(B) Priority.--The right to exchange nonpreferential lease
parcels or unleased parcels shall be granted in the following
order or priority:
(i) Exchanges with current lessees for nonpreferential
lease parcels.
(ii) Exchanges with adjoining and adjacent landowners for
unleased parcels and nonpreferential lease parcels not
exchanged by current lessees.
(C) Easement for water conveyance structure.--As a
condition of the exchange of land of the Pierre Canal Feature
under this paragraph, the United States reserves a perpetual
easement to the land to allow for the right to design,
construct, operate, maintain, repair, and replace a pipeline
or other water conveyance structure over, under, across, or
through the Pierre Canal feature.
(f) Release from Liability.--
(1) In general.--Effective on the date of conveyance of any
parcel under this Act, the United States shall not be held
liable by any court for damages of any kind arising out of
any act, omission, or occurrence relating to the parcel,
except for damages for acts of negligence committed by the
United States or by an employee, agent, or contractor of the
United States, before the date of conveyance.
(2) No additional liability.--Nothing in this section adds
to any liability that the United States may have under
chapter 171 of title 28, United States Code (commonly known
as the ``Federal Tort Claims Act'').
(g) Requirements Concerning Conveyance of Lease Parcels.--
(1) Interim requirements.--During the period beginning on
the date of enactment of this Act and ending on the date of
conveyance of the parcel, the Secretary shall continue to
lease each preferential lease parcel or nonpreferential lease
parcel to be conveyed under this section under the terms and
conditions applicable to the parcel on the date of enactment
of this Act.
(2) Provision of parcel descriptions.--Not later than 180
days after the date of enactment of this Act, the Secretary
shall provide the State a full legal description of all
preferential lease parcels and nonpreferential lease parcels
that may be conveyed under this section.
(h) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this Act $750,000 to
reimburse the Secretary for expenses incurred in implementing
this Act, and such sums as are necessary to reimburse the
Commission for expenses incurred implementing this Act, not
to exceed 10 percent of the cost of each transaction
conducted under this Act.
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