[Congressional Record Volume 149, Number 143 (Tuesday, October 14, 2003)]
[Senate]
[Pages S12547-S12561]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 1828. Mr. COCHRAN (for himself, Mr. Crapo, Mr. Domenici, Mrs. 
Lincoln, Mr. Craig, Mr. Wyden, Mrs. Feinstein, Mr. McCain, Mr. Baucus, 
Ms. Murkowski, Mr. Thomas, Mr. Daschle, Mr. Burns, and Mr. Johnson) 
submitted an amendment intended to be proposed by him to the bill H.R. 
1904, to improve the capacity of the Secretary of Agriculture and the 
Secretary of the Interior to plan and conduct hazardous fuels reduction 
projects on National Forest System lands and Bureau of Land Management 
lands aimed at protecting communities, watersheds, and certain other 
at-risk lands from catastrophic wildfire, to enhance efforts to protect 
watersheds and address threats to forest and rangeland health, 
including catastrophic wildfire, across the landscape, and for other 
purposes; which was ordered to lie on the table; as follows:

       Strike section 1 through title I and insert the following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Healthy 
     Forests Restoration Act of 2003''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Definitions.

           TITLE I--HAZARDOUS FUEL REDUCTION ON FEDERAL LAND

Sec. 101. Definitions.
Sec. 102. Authorized hazardous fuel reduction projects.
Sec. 103. Prioritization.
Sec. 104. Environmental analysis.
Sec. 105. Special administrative review process.
Sec. 106. Judicial review in United States district courts.
Sec. 107. Effect of title.
Sec. 108. Authorization of appropriations.

                           TITLE II--BIOMASS

Sec. 201. Findings.
Sec. 202. Definitions.
Sec. 203. Grants to improve commercial value of forest biomass for 
              electric energy, useful heat, transportation fuels, 
              compost, value-added products, and petroleum-based 
              product substitutes.
Sec. 204. Reporting requirement.
Sec. 205. Improved biomass use research program.
Sec. 206. Rural revitalization through forestry.

                TITLE III--WATERSHED FORESTRY ASSISTANCE

Sec. 301. Findings and purposes.
Sec. 302. Watershed forestry assistance program.
Sec. 303. Tribal watershed forestry assistance.

           TITLE IV--INSECT INFESTATIONS AND RELATED DISEASES

Sec. 401. Findings and purpose.
Sec. 402. Definitions.
Sec. 403. Accelerated information gathering regarding forest-damaging 
              insects.
Sec. 404. Applied silvicultural assessments.
Sec. 405. Relation to other laws.
Sec. 406. Authorization of appropriations.

                TITLE V--HEALTHY FORESTS RESERVE PROGRAM

Sec. 501. Establishment of healthy forests reserve program.
Sec. 502. Eligibility and enrollment of lands in program.
Sec. 503. Restoration plans.
Sec. 504. Financial assistance.
Sec. 505. Technical assistance.
Sec. 506. Protections and measures
Sec. 507. Involvement by other agencies and organizations.
Sec. 508. Authorization of appropriations.

                      TITLE VI--PUBLIC LAND CORPS

Sec. 601. Purposes.
Sec. 602. Definitions.
Sec. 603. Public Land Corps.
Sec. 604. Nondisplacement.
Sec. 605. Authorization of appropriations.

         TITLE VII--RURAL COMMUNITY FORESTRY ENTERPRISE PROGRAM

Sec. 701. Purpose
Sec. 702. Definitions.
Sec. 703. Rural community forestry enterprise program.

                  TITLE VIII--MISCELLANEOUS PROVISIONS

Sec. 801. Forest inventory and management.
Sec. 802. Program for emergency treatment and reduction of nonnative 
              invasive plants.
Sec. 803. USDA National Agroforestry Center.
Sec. 804. Upland Hardwoods Research Center.
Sec. 805. Sense of Congress regarding enhanced community fire 
              protection.

     SEC. 2. PURPOSES.

       The purposes of this Act are--
       (1) to reduce wildfire risk to communities, municipal water 
     supplies, and other at-risk Federal land through a 
     collaborative process of planning, prioritizing, and 
     implementing hazardous fuel reduction projects;
       (2) to authorize grant programs to improve the commercial 
     value of forest biomass (that otherwise contributes to the 
     risk of catastrophic fire or insect or disease infestation) 
     for producing electric energy, useful heat, transportation 
     fuel, and petroleum-based product substitutes, and for other 
     commercial purposes;
       (3) to enhance efforts to protect watersheds and address 
     threats to forest and rangeland health, including 
     catastrophic wildfire, across the landscape;
       (4) to promote systematic gathering of information to 
     address the impact of insect and disease infestations and 
     other damaging agents on forest and rangeland health;
       (5) to improve the capacity to detect insect and disease 
     infestations at an early stage, particularly with respect to 
     hardwood forests; and
       (6) to protect, restore, and enhance forest ecosystem 
     components--
       (A) to promote the recovery of threatened and endangered 
     species;
       (B) to improve biological diversity; and
       (C) to enhance productivity and carbon sequestration.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Federal land.--The term ``Federal land'' means--
       (A) land of the National Forest System (as defined in 
     section 11(a) of the Forest and Rangeland Renewable Resources 
     Planning Act of 1974 (16 U.S.C 1609(a))) administered by the 
     Secretary of Agriculture, acting through the Chief of the 
     Forest Service; and
       (B) public lands (as defined in section 103 of the Federal 
     Land Policy and Management Act of 1976 (43 U.S.C 1702)), the 
     surface of which is administered by the Secretary of the 
     Interior, acting through the Director of the Bureau of Land 
     Management.
       (2) 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).

           TITLE I--HAZARDOUS FUEL REDUCTION ON FEDERAL LAND

     SEC. 101. DEFINITIONS.

       In this title:
       (1) At-risk community.--The term ``at-risk community'' 
     means an area--
       (A) that is comprised of--
       (i) an interface community as defined in the notice 
     entitled ``Urban Wildlife Interface Communities Within the 
     Vicinity of Federal Lands That Are at High Risk From 
     Wildfire'' issued by the Secretary of Agriculture and the 
     Secretary of the Interior in accordance with title IV of the 
     Department of the Interior and Related Agencies 
     Appropriations Act, 2001 (114 Stat. 1009) (66 Fed. Reg. 753, 
     January 4, 2001); or
       (ii) a group of homes and other structures with basic 
     infrastructure and services (such as utilities and 
     collectively maintained transportation routes) within or 
     adjacent to Federal land;
       (B) in which conditions are conducive to a large-scale 
     wildland fire disturbance event; and
       (C) for which a significant threat to human life or 
     property exists as a result of a wildland fire disturbance 
     event.
       (2) Authorized hazardous fuel reduction project.--The term 
     ``authorized hazardous fuel reduction project'' means the 
     measures and methods described in the definition of 
     ``appropriate tools'' contained in the glossary of the 
     Implementation Plan, on Federal land described in section 
     102(a) and conducted under sections 103 and 104.
       (3) Community wildfire protection plan.--The term 
     ``community wildfire protection plan'' means a plan for an 
     at-risk community that--
       (A) is developed within the context of the collaborative 
     agreements and the guidance

[[Page S12548]]

     established by the Wildland Fire Leadership Council and 
     agreed to by the applicable local government, local fire 
     department, and State natural resources department, in 
     consultation with interested parties and the Federal land 
     management agencies managing land in the vicinity of the at-
     risk community;
       (B) identifies and prioritizes areas for hazardous fuel 
     reduction treatments and recommends the types and methods of 
     treatment on Federal and non-Federal land that will protect 1 
     or more at-risk communities and essential infrastructure; and
       (C) recommends measures to reduce structural ignitability 
     throughout the at-risk community.
       (4) Condition class 2.--The term ``condition class 2'', 
     with respect to an area of Federal land, means the condition 
     class description developed by the Forest Service Rocky 
     Mountain Research Station in the general technical report 
     entitled ``Development of Coarse-Scale Spatial Data for 
     Wildland Fire and Fuel Management'' (RMRS-87), dated April 
     2000 (including any subsequent revision to the report), under 
     which--
       (A) fire regimes on the land have been moderately altered 
     from historical ranges;
       (B) there exists a moderate risk of losing key ecosystem 
     components from fire;
       (C) fire frequencies have increased or decreased from 
     historical frequencies by 1 or more return intervals, 
     resulting in moderate changes to--
       (i) the size, frequency, intensity, or severity of fires; 
     or
       (ii) landscape patterns; and
       (D) vegetation attributes have been moderately altered from 
     the historical range of the attributes.
       (5) Condition class 3.--The term ``condition class 3'', 
     with respect to an area of Federal land, means the condition 
     class description developed by the Rocky Mountain Research 
     Station in the general technical report referred to in 
     paragraph (4) (including any subsequent revision to the 
     report), under which--
       (A) fire regimes on land have been significantly altered 
     from historical ranges;
       (B) there exists a high risk of losing key ecosystem 
     components from fire;
       (C) fire frequencies have departed from historical 
     frequencies by multiple return intervals, resulting in 
     dramatic changes to--
       (i) the size, frequency, intensity, or severity of fires; 
     or
       (ii) landscape patterns; and
       (D) vegetation attributes have been significantly altered 
     from the historical range of the attributes.
       (6) Day.--The term ``day'' means--
       (A) a calendar day; or
       (B) if a deadline imposed by this title would expire on a 
     nonbusiness day, the end of the next business day.
       (7) Decision document.--The term ``decision document'' 
     means--
       (A) a decision notice (as that term is used in the Forest 
     Service Handbook);
       (B) a decision record (as that term is used in the Bureau 
     of Land Management Handbook); and
       (C) a record of decision (as that term is used in 
     applicable regulations of the Council on Environmental 
     Quality).
       (8) Fire regime i.--The term ``fire regime I'' means an 
     area--
       (A) in which historically there have been low-severity 
     fires with a frequency of 0 through 35 years; and
       (B) that is located primarily in low elevation forests of 
     pine, oak, or pinyon juniper.
       (9) Fire regime ii.--The term ``fire regime II'' means an 
     area--
       (A) in which historically there are stand replacement 
     severity fires with a frequency of 0 through 35 years; and
       (B) that is located primarily in low- to mid-elevation 
     rangeland, grassland, or shrubland.
       (10) Fire regime iii.--The term ``fire regime III'' means 
     an area--
       (A) in which historically there are mixed severity fires 
     with a frequency of 35 through 100 years; and
       (B) that is located primarily in forests of mixed conifer, 
     dry Douglas fir, or wet Ponderosa pine.
       (11) Implementation plan.--The term ``Implementation Plan'' 
     means the Implementation Plan for the Comprehensive Strategy 
     for a Collaborative Approach for Reducing Wildland Fire Risks 
     to Communities and the Environment, dated May 2002, developed 
     pursuant to the conference report to accompany the Department 
     of the Interior and Related Agencies Appropriations Act, 2001 
     (House Report 106-64) (and subsequent revisions).
       (12) Municipal water supply system.--The term ``municipal 
     water supply system'' means the reservoirs, canals, ditches, 
     flumes, laterals, pipes, pipelines, and other surface 
     facilities and systems constructed or installed for the 
     collection, impoundment, storage, transportation, or 
     distribution of drinking water.
       (13) Resource management plan.--The term ``resource 
     management plan'' means--
       (A) a land and resource management plan prepared for 1 or 
     more units of land of the National Forest System described in 
     section 3(1)(A) under section 6 of the Forest and Rangeland 
     Renewable Resources Planning Act of 1974 (16 U.S.C. 1604); or
       (B) a land use plan prepared for 1 or more units of the 
     public land described in section 3(1)(B) under section 202 of 
     the Federal Land Policy and Management Act of 1976 (43 U.S.C. 
     1712).
       (14) Secretary.--The term ``Secretary'' means--
       (A) the Secretary of Agriculture, with respect to land of 
     the National Forest System described in section 3(1)(A); and
       (B) the Secretary of the Interior, with respect to public 
     lands described in section 3(1)(B).
       (15) Threatened and endangered species habitat.--The term 
     ``threatened and endangered species habitat'' means Federal 
     land identified in--
       (A) a determination that a species is an endangered species 
     or a threatened species under the Endangered Species Act of 
     1973 (16 U.S.C. 1531 et seq.);
       (B) a designation of critical habitat of the species under 
     that Act; or
       (C) a recovery plan prepared for the species under that 
     Act.
       (16) Wildland-urban interface.--The term ``wildland-urban 
     interface'' means--
       (A) an area within or adjacent to an at-risk community that 
     is identified in recommendations to the Secretary in a 
     community wildfire protection plan; or
       (B) in the case of any area for which a community wildfire 
     protection plan is not in effect--
       (i) an area extending \1/2\-mile from the boundary of an 
     at-risk community;
       (ii) an area extending more than \1/2\-mile from the 
     boundary of an at-risk community, if the land adjacent to the 
     at-risk community--

       (I) has a sustained steep slope that creates the potential 
     for wildfire behavior endangering the at-risk community; or
       (II) has a geographic feature that aids in creating an 
     effective fire break, such as a road or ridge top, within \3/
     4\-mile of the nearest at-risk community boundary; and

       (iii) an area that is adjacent to an evacuation route for 
     an at-risk community that the Secretary determines, in 
     cooperation with the at-risk community, requires hazardous 
     fuel reduction to provide safer evacuation from the at-risk 
     community.

     SEC. 102. AUTHORIZED HAZARDOUS FUEL REDUCTION PROJECTS.

       (a) Authorized Projects.--As soon as practicable after the 
     date of enactment of this Act, the Secretary shall implement 
     authorized hazardous fuel reduction projects, consistent with 
     the Implementation Plan, on--
       (1) Federal land in wildland-urban interface areas;
       (2) condition class 3 Federal land, in such proximity to a 
     municipal water supply system or a stream feeding such a 
     system within a municipal watershed that a significant risk 
     exists that a fire disturbance event would have adverse 
     effects on the water quality of the municipal water supply or 
     the maintenance of the system, including a risk to water 
     quality posed by erosion following such a fire disturbance 
     event;
       (3) condition class 2 Federal land located within fire 
     regime I, fire regime II, or fire regime III, in such 
     proximity to a municipal water supply system or a stream 
     feeding such a system within a municipal watershed that a 
     significant risk exists that a fire disturbance event would 
     have adverse effects on the water quality of the municipal 
     water supply or the maintenance of the system, including a 
     risk to water quality posed by erosion following such a fire 
     disturbance event;
       (4) Federal land on which windthrow or blowdown, ice storm 
     damage, or the existence of disease or insect infestation, 
     poses a significant threat to an ecosystem component, or 
     forest or rangeland resource, on the Federal land or adjacent 
     non-Federal land;
       (5) Federal land not covered by paragraphs (1) through (4) 
     that contains threatened and endangered species habitat, if--
       (A) natural fire regimes on that land are identified as 
     being important for, or wildfire is identified as a threat 
     to, an endangered species, a threatened species, or habitat 
     of an endangered species or threatened species in a species 
     recovery plan prepared under section 4 of the Endangered 
     Species Act of 1973 (16 U.S.C. 1533), or a notice published 
     in the Federal Register determining a species to be an 
     endangered species or a threatened species or designating 
     critical habitat;
       (B) the authorized hazardous fuel reduction project will 
     provide enhanced protection from catastrophic wildfire for 
     the endangered species, threatened species, or habitat of the 
     endangered species or threatened species; and
       (C) the Secretary complies with any applicable guidelines 
     specified in any management or recovery plan described in 
     subparagraph (A).
       (b) Relation to Agency Plans.--An authorized hazardous fuel 
     reduction project shall be conducted consistent with the 
     resource management plan and other relevant administrative 
     policies or decisions applicable to the Federal land covered 
     by the project.
       (c) Acreage Limitation.--Not more than a total of 
     20,000,000 acres of Federal land may be treated under 
     authorized hazardous fuel reduction projects.
       (d) Exclusion of Certain Federal Land.--The Secretary may 
     not conduct an authorized hazardous fuel reduction project 
     that would occur on--
       (1) a component of the National Wilderness Preservation 
     System;
       (2) Federal land on which, by Act of Congress or 
     Presidential proclamation, the removal of vegetation is 
     prohibited or restricted; or

[[Page S12549]]

       (3) a Wilderness Study Area.
       (e) Old Growth Stands.--
       (1) Definitions.--In this subsection and subsection (f):
       (A) Covered project.--The term ``covered project'' means an 
     authorized hazardous fuel reduction project carried out under 
     paragraph (1), (2), (3), or (5) of subsection (a).
       (B) Old growth stand.--The term ``old growth stand'' has 
     the meaning given the term under standards used pursuant to 
     paragraphs (3) and (4), based on the structure and 
     composition characteristic of the forest type, and in 
     accordance with applicable law, including section 6(g)(3)(B) 
     of the Forest and Rangeland Renewable Resources Planning Act 
     of 1974 (16 U.S.C. 1604(g)(3)(B)).
       (C) Standards.--The term ``standards'' means definitions, 
     designations, standards, guidelines, goals, or objectives 
     established for an old growth stand under a resource 
     management plan developed in accordance with applicable law, 
     including section 6(g)(3)(B) of the Forest and Rangeland 
     Renewable Resources Planning Act of 1974 (16 U.S.C. 
     1604(g)(3)(B)).
       (2) Project requirements.--In carrying out a covered 
     project, the Secretary shall fully maintain, or contribute 
     toward the restoration of, the structure and composition of 
     old growth stands according to the pre-fire suppression old 
     growth conditions characteristic of the forest type, taking 
     into account the contribution of the stand to landscape fire 
     adaptation and watershed health, and retaining the large 
     trees contributing to old growth structure.
       (3) Newer standards.--
       (A) In general.--If the standards for an old growth stand 
     were established during the 10-year period ending on the date 
     of enactment of this Act, the Secretary shall meet the 
     requirements of paragraph (2) by implementing the standards.
       (B) Amendments or revisions.--Any amendment or revision to 
     standards for which final administrative approval is granted 
     after the date of enactment of this Act shall be consistent 
     with paragraph (2).
       (4) Older standards.--
       (A) In general.--If the standards for an old growth stand 
     were established before the 10-year period described in 
     paragraph (3)(A), the Secretary shall meet the requirements 
     of paragraph (2) by implementing the standards--
       (i) during the 2-year period beginning on the date of 
     enactment of this Act; or
       (ii) if the Secretary is in the process of revising a 
     resource management plan as of the date of enactment of this 
     Act, during the 3-year period beginning on the date of 
     enactment of this Act.
       (B) Review required.--During the applicable period 
     described in subparagraph (A) for the standards for an old 
     growth stand under a resource management plan, the Secretary 
     shall--
       (i) review the standards, taking into account any relevant 
     scientific information made available since the adoption of 
     the standards; and
       (ii) revise the standards to be consistent with paragraph 
     (2), if necessary to reflect relevant scientific information 
     the Secretary did not consider in formulating the resource 
     management plan.
       (C) Review not completed.--
       (i) In general.--If the Secretary does not complete the 
     review of the standards in accordance with subparagraph (B), 
     during the period described in clause (ii), the Secretary 
     shall not carry out any portion of a covered project in a 
     stand that is identified as an old growth stand (based on 
     substantial supporting evidence) by any person during 
     scoping.
       (ii) Period.--Clause (i) applies during the period--

       (I) beginning on the termination of the applicable period 
     for the standards described in subparagraph (A); and
       (II) ending on the date the Secretary completes the action 
     required by subparagraph (B) for the standards.

       (5) Effect on civil actions.--A person may bring a civil 
     action based on standards for an old growth stand under a 
     resource management plan only by challenging a plan 
     amendment, plan revision, or project implementing the 
     standards of the plan, in accordance with applicable 
     provisions of law (including the National Forest Management 
     Act of 1976 (16 U.S.C. 1600 et seq.) and the Federal Land 
     Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.)).
       (f) Large Tree Retention.--Subject to subsection (e), the 
     Secretary shall carry out a covered project in a manner 
     that--
       (1) focuses largely on small diameter trees, thinning, 
     strategic fuel breaks, and prescribed fire to modify fire 
     behavior, as measured by the projected reduction of 
     uncharacteristically severe wildfire effects for the forest 
     type (such as adverse soil impacts, tree mortality or other 
     impacts); and
       (2) maximizes the retention of large trees, as appropriate 
     for the forest type, to the extent that the trees promote 
     fire-resilient stands and the purposes of section 6(g)(3)(B) 
     of the Forest and Rangeland Renewable Resources Planning Act 
     of 1976 (16 U.S.C. 1604(g)(3)(B)).
       (g) Monitoring and Assessing Forest and Rangeland Health.--
       (1) In general.--For each Forest Service administrative 
     region and each Bureau of Land Management State Office, the 
     Secretary shall--
       (A) monitor the results of the projects authorized under 
     this section; and
       (B) not later than 5 years after the date of enactment of 
     this Act, and each 5 years thereafter, issue a report that 
     includes--
       (i) an evaluation of the progress towards project goals; 
     and
       (ii) recommendations for modifications to the projects and 
     management treatments.
       (2) Consistency of projects with recommendations.--An 
     authorized hazardous fuel reduction project approved 
     following the issuance of a monitoring report shall, to the 
     maximum extent practicable, be consistent with any applicable 
     recommendations in the report.
       (3) Similar vegetation types.--The results of a monitoring 
     report shall be made available in, and (if appropriate) used 
     for, a project conducted in a similar vegetation type on land 
     under the jurisdiction of the Secretary.
       (4) Monitoring and assessments.--From a representative 
     sample of authorized hazardous fuel reduction projects, for 
     each management unit, monitoring and assessment shall include 
     a description of the effects on changes in condition class, 
     using the Fire Regime Condition Class Guidebook or successor 
     guidance, specifically comparing end results to--
       (A) pretreatment conditions;
       (B) historical fire regimes; and
       (C) any applicable watershed or landscape goals or 
     objectives in the resource management plan or other relevant 
     direction.
       (5) Tracking.--For each management unit, the Secretary 
     shall track acres burned, by the degree of severity, by large 
     wildfires (as defined by the Secretary).
       (6) Monitoring and maintenance of treated areas.--The 
     Secretary shall, to the maximum extent practicable, develop a 
     process for monitoring the need for maintenance of treated 
     areas, over time, in order to preserve the forest health 
     benefits achieved.

     SEC. 103. PRIORITIZATION.

       (a) In General.--In accordance with the Implementation 
     Plan, the Secretary shall develop an annual program of work 
     for Federal land that gives priority to authorized hazardous 
     fuel reduction projects that provide for the protection of 
     at-risk communities or watersheds or that implement community 
     wildfire protection plans.
       (b) Collaboration.--
       (1) In general.--The Secretary shall consider 
     recommendations under subsection (a) that are made by at-risk 
     communities that have developed community wildfire protection 
     plans.
       (2) Exemption.--The Federal Advisory Committee Act (5 
     U.S.C. App.) shall not apply to the planning process and 
     recommendations concerning community wildfire protection 
     plans.
       (c) Administration.--
       (1) In general.--Federal agency involvement in a community 
     wildfire protection plan, or a recommendation made in a 
     community wildfire protection plan, shall not be considered a 
     Federal agency action under the National Environmental Policy 
     Act of 1969 (42 U.S.C. 4321 et seq.).
       (2) Compliance.--In implementing authorized hazardous fuel 
     reduction projects on Federal land, the Secretary shall, in 
     accordance with section 104, comply with the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
       (d) Funding Allocation.--
       (1) Federal land.--
       (A) In general.--Subject to subparagraph (B), the Secretary 
     shall use not less than 50 percent of the funds allocated for 
     authorized hazardous fuel reduction projects in the wildland-
     urban interface.
       (B) Applicability and allocation.--The funding allocation 
     in subparagraph (A) shall apply at the national level, and 
     the Secretary may allocate the proportion of funds 
     differently than is required under subparagraph (A) within 
     individual management units as appropriate, in particular to 
     conduct authorized hazardous fuel reduction projects on land 
     described in section 102(a)(4).
       (2) Non-federal land.--In providing financial assistance 
     under any provision of law for authorized hazardous fuel 
     reduction projects on non-Federal land, the Secretary shall 
     consider recommendations made by at-risk communities that 
     have developed community wildfire protection plans.

     SEC. 104. ENVIRONMENTAL ANALYSIS.

       (a) Authorized Hazardous Fuel Reduction Projects.--Except 
     as otherwise provided in this title, the Secretary shall 
     conduct authorized hazardous fuel reduction projects in 
     accordance with--
       (1) the National Environmental Policy Act of 1969 (42 
     U.S.C. 4331 et seq.); and
       (2) other applicable laws.
       (b) Environmental Assessment or Impact Statements.--
       (1) In general.--The Secretary shall prepare an 
     environmental assessment or an environmental impact statement 
     (pursuant to section 102(2) of the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4332(2))) for any authorized 
     hazardous fuel reduction project.
       (2) Alternatives.--In the environmental assessment or 
     environmental impact statement prepared under paragraph (1), 
     the Secretary shall study, develop, and describe--
       (A) the proposed agency action;
       (B) the alternative of no action; and
       (C) an additional action alternative, if the additional 
     alternative--
       (i) is proposed during scoping or the collaborative 
     process; and

[[Page S12550]]

       (ii) meets the purpose and need of the project, in 
     accordance with regulations promulgated by the Council on 
     Environmental Quality.
       (3) Multiple additional alternatives.--If more than 1 
     additional alternative is proposed under paragraph (2)(C), 
     the Secretary shall--
       (A) select which additional alternative to consider; and
       (B) provide a written record describing the reasons for the 
     selection.
       (c) Public Notice and Meeting.--
       (1) Public notice.--The Secretary shall provide notice of 
     each authorized hazardous fuel reduction project in 
     accordance with applicable regulations and administrative 
     guidelines.
       (2) Public meeting.--During the preparation stage of each 
     authorized hazardous fuel reduction project, the Secretary 
     shall--
       (A) conduct a public meeting at an appropriate location 
     proximate to the administrative unit of the Federal land on 
     which the authorized hazardous fuel reduction project will be 
     conducted; and
       (B) provide advance notice of the location, date, and time 
     of the meeting.
       (d) Public Collaboration.--In order to encourage meaningful 
     public participation during preparation of authorized 
     hazardous fuel reduction projects, the Secretary shall 
     facilitate collaboration among State and local governments 
     and Indian tribes, and participation of interested persons, 
     during the preparation of each authorized fuel reduction 
     project in a manner consistent with the Implementation Plan.
       (e) Environmental Analysis and Public Comment.--In 
     accordance with section 102(2) of the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4332(2)) and the applicable 
     regulations and administrative guidelines, the Secretary 
     shall provide an opportunity for public comment during the 
     preparation of any environmental assessment or environmental 
     impact statement for an authorized hazardous fuel reduction 
     project.
       (f) Decision Document.--The Secretary shall sign a decision 
     document for authorized hazardous fuel reduction projects and 
     provide notice of the final agency actions.
       (g) Project Monitoring.--In accordance with the 
     Implementation Plan, the Secretary shall monitor the 
     implementation of authorized hazardous fuel reduction 
     projects.

     SEC. 105. SPECIAL ADMINISTRATIVE REVIEW PROCESS.

       (a) Interim Final Regulations.--
       (1) In general.--Not later than 30 days after the date of 
     the enactment of this Act, the Secretary of Agriculture shall 
     promulgate interim final regulations to establish a 
     predecisional administrative review process for the period 
     described in paragraph (2) that will serve as the sole means 
     by which a person can seek administrative review regarding an 
     authorized hazardous fuel reduction project on Forest Service 
     land.
       (2) Period.--The predecisional administrative review 
     process required under paragraph (1) shall occur during the 
     period--
       (A) beginning after the completion of the environmental 
     assessment or environmental impact statement; and
       (B) ending not later than the date of the issuance of the 
     final decision approving the project.
       (3) Effective date.--The interim final regulations 
     promulgated under paragraph (1) shall take effect on the date 
     of promulgation of the regulations.
       (b) Final Regulations.--The Secretary shall promulgate 
     final regulations to establish the process described in 
     subsection (a)(1) after the interim final regulations have 
     been published and reasonable time has been provided for 
     public comment.
       (c) Administrative Review.--
       (1) In general.--A person may bring a civil action 
     challenging an authorized hazardous fuel reduction project in 
     a Federal district court only if the person has challenged 
     the authorized hazardous fuel reduction project by 
     exhausting--
       (A) the administrative review process established by the 
     Secretary of Agriculture under this section; or
       (B) the administrative hearings and appeals procedures 
     established by the Department of the Interior.
       (2) Issues.--An issue may be considered in the judicial 
     review of an action under section 106 only if the issue was 
     raised in an administrative review process described in 
     paragraph (1).
       (3) Exception.--An exception to the requirement of 
     exhausting the administrative review process before seeking 
     judicial review shall be available if a Federal court finds 
     that the futility or inadequacy exception applies to a 
     specific plaintiff or claim.

     SEC. 106. JUDICIAL REVIEW IN UNITED STATES DISTRICT COURTS.

       (a) Venue.--Notwithstanding section 1391 of title 28, 
     United States Code, or other applicable law, an authorized 
     hazardous fuels reduction project conducted under this title 
     shall be subject to judicial review only in the United States 
     district court for the district in which the Federal land to 
     be treated under the authorized hazardous fuels reduction 
     project is located.
       (b) Expeditious Completion of Judicial Review.--In the 
     judicial review of an action challenging an authorized 
     hazardous fuel reduction project under subsection (a), 
     Congress encourages a court of competent jurisdiction to 
     expedite, to the maximum extent practicable, the proceedings 
     in the action with the goal of rendering a final 
     determination on jurisdiction, and (if jurisdiction exists) a 
     final determination on the merits, as soon as practicable 
     after the date on which a complaint or appeal is filed to 
     initiate the action.
       (c) Injunctions.--
       (1) In general.--Subject to paragraph (2), the length of 
     any preliminary injunctive relief and stays pending appeal 
     covering an authorized hazardous fuel reduction project 
     carried out under this title shall not exceed 60 days.
       (2) Renewal.--
       (A) In general.--A court of competent jurisdiction may 
     issue 1 or more renewals of any preliminary injunction, or 
     stay pending appeal, granted under paragraph (1).
       (B) Updates.--In each renewal of an injunction in an 
     action, the parties to the action shall present the court 
     with updated information on the status of the authorized 
     hazardous fuel reduction project.
       (3) Balancing of short- and long-term effects.--As part of 
     its weighing the equities while considering any request for 
     an injunction that applies to an agency action under an 
     authorized hazardous fuel reduction project, the court 
     reviewing the project shall balance the impact to the 
     ecosystem likely affected by the project of--
       (A) the short- and long-term effects of undertaking the 
     agency action; against
       (B) the short- and long-term effects of not undertaking the 
     agency action.

     SEC. 107. EFFECT OF TITLE.

       (a) Other Authority.--Nothing in this title affects, or 
     otherwise biases, the use by the Secretary of other statutory 
     or administrative authority (including categorical exclusions 
     adopted to implement the National Environmental Policy Act of 
     1969 (42 U.S.C. 4321 et seq.)) to conduct a hazardous fuel 
     reduction project on Federal land (including Federal land 
     identified in section 102(d)) that is not conducted using the 
     process authorized by section 104.
       (b) National Forest System.--Nothing in this title affects, 
     or otherwise biases, the notice, comment, and appeal 
     procedures for projects and activities of the National Forest 
     System contained in part 215 of title 36, Code of Federal 
     Regulations, or the consideration or disposition of any legal 
     action brought with respect to the procedures.

     SEC. 108. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated $760,000,000 for 
     each fiscal year to carry out--
       (1) activities authorized by this title; and
       (2) other hazardous fuel reduction activities of the 
     Secretary, including making grants to States for activities 
     authorized by law.
                                 ______
                                 
  SA 1829. Mrs. LINCOLN submitted an amendment intended to be proposed 
by her to the bill S. 1689, making emergency supplemental 
appropriations for Iraq and Afghanistan security and reconstruction for 
the fiscal year ending September 30, 2004, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the end, add the following:

                DIVISION B--RELIEF FOR MILITARY FAMILIES

     SECTION 1. SHORT TITLE, ETC.

       (a) Short Title.--This division may be cited as the 
     ``Military Families Tax Relief Act of 2003''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this division an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.
       (c) Table of Contents.--

Sec. 1. Short title, etc.

          TITLE I--IMPROVING TAX EQUITY FOR MILITARY PERSONNEL

Sec. 101. Exclusion of gain from sale of a principal residence by a 
              member of the uniformed services or the Foreign Service.
Sec. 102. Exclusion from gross income of certain death gratuity 
              payments.
Sec. 103. Exclusion for amounts received under Department of Defense 
              homeowners assistance program.
Sec. 104. Expansion of combat zone filing rules to contingency 
              operations.
Sec. 105. Modification of membership requirement for exemption from tax 
              for certain veterans' organizations.
Sec. 106. Clarification of the treatment of certain dependent care 
              assistance programs.
Sec. 107. Clarification relating to exception from additional tax on 
              certain distributions from qualified tuition programs, 
              etc. on account of attendance at military academy.
Sec. 108. Suspension of tax-exempt status of terrorist organizations.
Sec. 109. Above-the-line deduction for overnight travel expenses of 
              National Guard and Reserve members.
Sec. 110. Tax relief and assistance for families of Space Shuttle 
              Columbia heroes.

                 TITLE II--UNIFORM DEFINITION OF CHILD

Sec. 201. Uniform definition of child, etc.

[[Page S12551]]

Sec. 202. Modifications of definition of head of household.
Sec. 203. Modifications of dependent care credit.
Sec. 204. Modifications of child tax credit.
Sec. 205. Modifications of earned income credit.
Sec. 206. Modifications of deduction for personal exemption for 
              dependents.
Sec. 207. Technical and conforming amendments.
Sec. 208. Effective date.

                      TITLE III--CHILD TAX CREDIT

Sec. 301. Acceleration of increase in refundability of the child tax 
              credit.
Sec. 302. Reduction in marriage penalty in child tax credit.
Sec. 303. Application of EGTRRA sunset to this section.

                       TITLE IV--OTHER PROVISIONS

Sec. 401. Extension of IRS user fees.
Sec. 402. Partial payment of tax liability in installment agreements.
Sec. 403. Revision of tax rules on expatriation.
Sec. 404. Extension of customs user fees.

          TITLE I--IMPROVING TAX EQUITY FOR MILITARY PERSONNEL

     SEC. 101. EXCLUSION OF GAIN FROM SALE OF A PRINCIPAL 
                   RESIDENCE BY A MEMBER OF THE UNIFORMED SERVICES 
                   OR THE FOREIGN SERVICE.

       (a) In General.--Subsection (d) of section 121 (relating to 
     exclusion of gain from sale of principal residence) is 
     amended by redesignating paragraph (9) as paragraph (10) and 
     by inserting after paragraph (8) the following new paragraph:
       ``(9) Members of uniformed services and foreign service.--
       ``(A) In general.--At the election of an individual with 
     respect to a property, the running of the 5-year period 
     described in subsections (a) and (c)(1)(B) and paragraph (7) 
     of this subsection with respect to such property shall be 
     suspended during any period that such individual or such 
     individual's spouse is serving on qualified official extended 
     duty as a member of the uniformed services or of the Foreign 
     Service of the United States.
       ``(B) Maximum period of suspension.--The 5-year period 
     described in subsection (a) shall not be extended more than 
     10 years by reason of subparagraph (A).
       ``(C) Qualified official extended duty.--For purposes of 
     this paragraph--
       ``(i) In general.--The term `qualified official extended 
     duty' means any extended duty while serving at a duty station 
     which is at least 50 miles from such property or while 
     residing under Government orders in Government quarters.
       ``(ii) Uniformed services.--The term `uniformed services' 
     has the meaning given such term by section 101(a)(5) of title 
     10, United States Code, as in effect on the date of the 
     enactment of this paragraph.
       ``(iii) Foreign service of the united states.--The term 
     `member of the Foreign Service of the United States' has the 
     meaning given the term `member of the Service' by paragraph 
     (1), (2), (3), (4), or (5) of section 103 of the Foreign 
     Service Act of 1980, as in effect on the date of the 
     enactment of this paragraph.
       ``(iv) Extended duty.--The term `extended duty' means any 
     period of active duty pursuant to a call or order to such 
     duty for a period in excess of 90 days or for an indefinite 
     period.
       ``(D) Special rules relating to election.--
       ``(i) Election limited to 1 property at a time.--An 
     election under subparagraph (A) with respect to any property 
     may not be made if such an election is in effect with respect 
     to any other property.
       ``(ii) Revocation of election.--An election under 
     subparagraph (A) may be revoked at any time.''.
       (b) Effective Date; Special Rule.--
       (1) Effective date.--The amendments made by this section 
     shall take effect as if included in the amendments made by 
     section 312 of the Taxpayer Relief Act of 1997.
       (2) Waiver of limitations.--If refund or credit of any 
     overpayment of tax resulting from the amendments made by this 
     section is prevented at any time before the close of the 1-
     year period beginning on the date of the enactment of this 
     Act by the operation of any law or rule of law (including res 
     judicata), such refund or credit may nevertheless be made or 
     allowed if claim therefor is filed before the close of such 
     period.

     SEC. 102. EXCLUSION FROM GROSS INCOME OF CERTAIN DEATH 
                   GRATUITY PAYMENTS.

       (a) In General.--Subsection (b)(3) of section 134 (relating 
     to certain military benefits) is amended by adding at the end 
     the following new subparagraph:
       ``(C) Exception for death gratuity adjustments made by 
     law.--Subparagraph (A) shall not apply to any adjustment to 
     the amount of death gratuity payable under chapter 75 of 
     title 10, United States Code, which is pursuant to a 
     provision of law enacted after September 9, 1986.''.
       (b) Conforming Amendment.--Subparagraph (A) of section 
     134(b)(3) is amended by striking ``subparagraph (B)'' and 
     inserting ``subparagraphs (B) and (C)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to deaths occurring after September 
     10, 2001.

     SEC. 103. EXCLUSION FOR AMOUNTS RECEIVED UNDER DEPARTMENT OF 
                   DEFENSE HOMEOWNERS ASSISTANCE PROGRAM.

       (a) In General.--Section 132(a) (relating to the exclusion 
     from gross income of certain fringe benefits) is amended by 
     striking ``or'' at the end of paragraph (6), by striking the 
     period at the end of paragraph (7) and inserting ``, or'', 
     and by adding at the end the following new paragraph:
       ``(8) qualified military base realignment and closure 
     fringe.''.
       (b) Qualified Military Base Realignment and Closure 
     Fringe.--Section 132 is amended by redesignating subsection 
     (n) as subsection (o) and by inserting after subsection (m) 
     the following new subsection:
       ``(n) Qualified Military Base Realignment and Closure 
     Fringe.--For purposes of this section--
       ``(1) In general.--The term `qualified military base 
     realignment and closure fringe' means 1 or more payments 
     under the authority of section 1013 of the Demonstration 
     Cities and Metropolitan Development Act of 1966 (42 U.S.C. 
     3374) (as in effect on the date of the enactment of this 
     subsection) to offset the adverse effects on housing values 
     as a result of a military base realignment or closure.
       ``(2) Limitation.--With respect to any property, such term 
     shall not include any payment referred to in paragraph (1) to 
     the extent that the sum of all of such payments related to 
     such property exceeds the maximum amount described in clause 
     (1) of subsection (c) of such section (as in effect on such 
     date).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to payments made after the date of the enactment 
     of this Act.

     SEC. 104. EXPANSION OF COMBAT ZONE FILING RULES TO 
                   CONTINGENCY OPERATIONS.

       (a) In General.--Section 7508(a) (relating to time for 
     performing certain acts postponed by reason of service in 
     combat zone) is amended--
       (1) by inserting ``, or when deployed outside the United 
     States away from the individual's permanent duty station 
     while participating in an operation designated by the 
     Secretary of Defense as a contingency operation (as defined 
     in section 101(a)(13) of title 10, United States Code) or 
     which became such a contingency operation by operation of 
     law'' after ``section 112'',
       (2) by inserting in the first sentence ``or at any time 
     during the period of such contingency operation'' after ``for 
     purposes of such section'',
       (3) by inserting ``or operation'' after ``such an area'', 
     and
       (4) by inserting ``or operation'' after ``such area''.
       (b) Conforming Amendments.--
       (1) Section 7508(d) is amended by inserting ``or 
     contingency operation'' after ``area''.
       (2) The heading for section 7508 is amended by inserting 
     ``OR CONTINGENCY OPERATION'' after ``COMBAT ZONE''.
       (3) The item relating to section 7508 in the table of 
     sections for chapter 77 is amended by inserting ``or 
     contingency operation'' after ``combat zone''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to any period for performing an act which has not 
     expired before the date of the enactment of this Act.

     SEC. 105. MODIFICATION OF MEMBERSHIP REQUIREMENT FOR 
                   EXEMPTION FROM TAX FOR CERTAIN VETERANS' 
                   ORGANIZATIONS.

       (a) In General.--Subparagraph (B) of section 501(c)(19) 
     (relating to list of exempt organizations) is amended by 
     striking ``or widowers'' and inserting ``, widowers, 
     ancestors, or lineal descendants''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 106. CLARIFICATION OF THE TREATMENT OF CERTAIN DEPENDENT 
                   CARE ASSISTANCE PROGRAMS.

       (a) In General.--Section 134(b) (defining qualified 
     military benefit) is amended by adding at the end the 
     following new paragraph:
       ``(4) Clarification of certain benefits.--For purposes of 
     paragraph (1), such term includes any dependent care 
     assistance program (as in effect on the date of the enactment 
     of this paragraph) for any individual described in paragraph 
     (1)(A).''.
       (b) Conforming Amendments.--
       (1) Section 134(b)(3)(A), as amended by section 102, is 
     amended by inserting ``and paragraph (4)'' after 
     ``subparagraphs (B) and (C)''.
       (2) Section 3121(a)(18) is amended by striking ``or 129'' 
     and inserting ``, 129, or 134(b)(4)''.
       (3) Section 3306(b)(13) is amended by striking ``or 129'' 
     and inserting ``, 129, or 134(b)(4)''.
       (4) Section 3401(a)(18) is amended by striking ``or 129'' 
     and inserting ``, 129, or 134(b)(4)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2002.
       (d) No Inference.--No inference may be drawn from the 
     amendments made by this section with respect to the tax 
     treatment of any amounts under the program described in 
     section 134(b)(4) of the Internal Revenue Code of 1986 (as 
     added by this section) for any taxable year beginning before 
     January 1, 2003.

[[Page S12552]]

     SEC. 107. CLARIFICATION RELATING TO EXCEPTION FROM ADDITIONAL 
                   TAX ON CERTAIN DISTRIBUTIONS FROM QUALIFIED 
                   TUITION PROGRAMS, ETC. ON ACCOUNT OF ATTENDANCE 
                   AT MILITARY ACADEMY.

       (a) In General.--Subparagraph (B) of section 530(d)(4) 
     (relating to exceptions from additional tax for distributions 
     not used for educational purposes) is amended by striking 
     ``or'' at the end of clause (iii), by redesignating clause 
     (iv) as clause (v), and by inserting after clause (iii) the 
     following new clause:
       ``(iv) made on account of the attendance of the designated 
     beneficiary at the United States Military Academy, the United 
     States Naval Academy, the United States Air Force Academy, 
     the United States Coast Guard Academy, or the United States 
     Merchant Marine Academy, to the extent that the amount of the 
     payment or distribution does not exceed the costs of advanced 
     education (as defined by section 2005(e)(3) of title 10, 
     United States Code, as in effect on the date of the enactment 
     of this section) attributable to such attendance, or''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2002.

     SEC. 108. SUSPENSION OF TAX-EXEMPT STATUS OF TERRORIST 
                   ORGANIZATIONS.

       (a) In General.--Section 501 (relating to exemption from 
     tax on corporations, certain trusts, etc.) is amended by 
     redesignating subsection (p) as subsection (q) and by 
     inserting after subsection (o) the following new subsection:
       ``(p) Suspension of Tax-Exempt Status of Terrorist 
     Organizations.--
       ``(1) In general.--The exemption from tax under subsection 
     (a) with respect to any organization described in paragraph 
     (2), and the eligibility of any organization described in 
     paragraph (2) to apply for recognition of exemption under 
     subsection (a), shall be suspended during the period 
     described in paragraph (3).
       ``(2) Terrorist organizations.--An organization is 
     described in this paragraph if such organization is 
     designated or otherwise individually identified--
       ``(A) under section 212(a)(3)(B)(vi)(II) or 219 of the 
     Immigration and Nationality Act as a terrorist organization 
     or foreign terrorist organization,
       ``(B) in or pursuant to an Executive order which is related 
     to terrorism and issued under the authority of the 
     International Emergency Economic Powers Act or section 5 of 
     the United Nations Participation Act of 1945 for the purpose 
     of imposing on such organization an economic or other 
     sanction, or
       ``(C) in or pursuant to an Executive order issued under the 
     authority of any Federal law if--
       ``(i) the organization is designated or otherwise 
     individually identified in or pursuant to such Executive 
     order as supporting or engaging in terrorist activity (as 
     defined in section 212(a)(3)(B) of the Immigration and 
     Nationality Act) or supporting terrorism (as defined in 
     section 140(d)(2) of the Foreign Relations Authorization Act, 
     Fiscal Years 1988 and 1989); and
       ``(ii) such Executive order refers to this subsection.
       ``(3) Period of suspension.--With respect to any 
     organization described in paragraph (2), the period of 
     suspension--
       ``(A) begins on the later of--
       ``(i) the date of the first publication of a designation or 
     identification described in paragraph (2) with respect to 
     such organization, or
       ``(ii) the date of the enactment of this subsection, and
       ``(B) ends on the first date that all designations and 
     identifications described in paragraph (2) with respect to 
     such organization are rescinded pursuant to the law or 
     Executive order under which such designation or 
     identification was made.
       ``(4) Denial of deduction.--No deduction shall be allowed 
     under any provision of this title, including sections 170, 
     545(b)(2), 556(b)(2), 642(c), 2055, 2106(a)(2), and 2522, 
     with respect to any contribution to an organization described 
     in paragraph (2) during the period described in paragraph 
     (3).
       ``(5) Denial of administrative or judicial challenge of 
     suspension or denial of deduction.--Notwithstanding section 
     7428 or any other provision of law, no organization or other 
     person may challenge a suspension under paragraph (1), a 
     designation or identification described in paragraph (2), the 
     period of suspension described in paragraph (3), or a denial 
     of a deduction under paragraph (4) in any administrative or 
     judicial proceeding relating to the Federal tax liability of 
     such organization or other person.
       ``(6) Erroneous designation.--
       ``(A) In general.--If--
       ``(i) the tax exemption of any organization described in 
     paragraph (2) is suspended under paragraph (1),
       ``(ii) each designation and identification described in 
     paragraph (2) which has been made with respect to such 
     organization is determined to be erroneous pursuant to the 
     law or Executive order under which such designation or 
     identification was made, and
       ``(iii) the erroneous designations and identifications 
     result in an overpayment of income tax for any taxable year 
     by such organization,

     credit or refund (with interest) with respect to such 
     overpayment shall be made.
       ``(B) Waiver of limitations.--If the credit or refund of 
     any overpayment of tax described in subparagraph (A)(iii) is 
     prevented at any time by the operation of any law or rule of 
     law (including res judicata), such credit or refund may 
     nevertheless be allowed or made if the claim therefor is 
     filed before the close of the 1-year period beginning on the 
     date of the last determination described in subparagraph 
     (A)(ii).
       ``(7) Notice of Suspensions.--If the tax exemption of any 
     organization is suspended under this subsection, the Internal 
     Revenue Service shall update the listings of tax-exempt 
     organizations and shall publish appropriate notice to 
     taxpayers of such suspension and of the fact that 
     contributions to such organization are not deductible during 
     the period of such suspension.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to designations made before, on, or after the 
     date of the enactment of this Act.

     SEC. 109. ABOVE-THE-LINE DEDUCTION FOR OVERNIGHT TRAVEL 
                   EXPENSES OF NATIONAL GUARD AND RESERVE MEMBERS.

       (a) Deduction Allowed.--Section 162 (relating to certain 
     trade or business expenses) is amended by redesignating 
     subsection (p) as subsection (q) and inserting after 
     subsection (o) the following new subsection:
       ``(p) Treatment of Expenses of Members of Reserve Component 
     of Armed Forces of the United States.--For purposes of 
     subsection (a)(2), in the case of an individual who performs 
     services as a member of a reserve component of the Armed 
     Forces of the United States at any time during the taxable 
     year, such individual shall be deemed to be away from home in 
     the pursuit of a trade or business for any period during 
     which such individual is away from home in connection with 
     such service.''.
       (b) Deduction Allowed Whether or Not Taxpayer Elects To 
     Itemize.--Section 62(a)(2) (relating to certain trade and 
     business deductions of employees) is amended by adding at the 
     end the following new subparagraph:
       ``(E) Certain expenses of members of reserve components of 
     the armed forces of the united states.--The deductions 
     allowed by section 162 which consist of expenses, determined 
     at a rate not in excess of the rates for travel expenses 
     (including per diem in lieu of subsistence) authorized for 
     employees of agencies under subchapter I of chapter 57 of 
     title 5, United States Code, paid or incurred by the taxpayer 
     in connection with the performance of services by such 
     taxpayer as a member of a reserve component of the Armed 
     Forces of the United States for any period during which such 
     individual is more than 100 miles away from home in 
     connection with such services.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred in taxable years 
     beginning after December 31, 2002.

     SEC. 110. TAX RELIEF AND ASSISTANCE FOR FAMILIES OF SPACE 
                   SHUTTLE COLUMBIA HEROES.

       (a) Income Tax Relief.--
       (1) In general.--Subsection (d) of section 692 (relating to 
     income taxes of members of Armed Forces and victims of 
     certain terrorist attacks on death) is amended by adding at 
     the end the following new paragraph:
       ``(5) Relief with respect to astronauts.--The provisions of 
     this subsection shall apply to any astronaut whose death 
     occurs in the line of duty, except that paragraph (3)(B) 
     shall be applied by using the date of the death of the 
     astronaut rather than September 11, 2001.''.
       (2) Conforming amendments.--
       (A) Section 5(b)(1) is amended by inserting ``, 
     astronauts,'' after ``Forces''.
       (B) Section 6013(f)(2)(B) is amended by inserting ``, 
     astronauts,'' after ``Forces''.
       (3) Clerical amendments.--
       (A) The heading of section 692 is amended by inserting ``, 
     ASTRONAUTS,'' after ``FORCES''.
       (B) The item relating to section 692 in the table of 
     sections for part II of subchapter J of chapter 1 is amended 
     by inserting ``, astronauts,'' after ``Forces''.
       (4) Effective date.--The amendments made by this subsection 
     shall apply with respect to any astronaut whose death occurs 
     after December 31, 2002.
       (b) Death Benefit Relief.--
       (1) In general.--Subsection (i) of section 101 (relating to 
     certain death benefits) is amended by adding at the end the 
     following new paragraph:
       ``(4) Relief with respect to astronauts.--The provisions of 
     this subsection shall apply to any astronaut whose death 
     occurs in the line of duty.''.
       (2) Clerical amendment.--The heading for subsection (i) of 
     section 101 is amended by inserting ``or Astronauts'' after 
     ``Victims''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to amounts paid after December 31, 2002, with 
     respect to deaths occurring after such date.
       (c) Estate Tax Relief.--
       (1) In general.--Section 2201(b) (defining qualified 
     decedent) is amended by striking ``and'' at the end of 
     paragraph (1)(B), by striking the period at the end of 
     paragraph (2) and inserting ``, and'', and by adding at the 
     end the following new paragraph:
       ``(3) any astronaut whose death occurs in the line of 
     duty.''.
       (2) Clerical amendments.--
       (A) The heading of section 2201 is amended by inserting ``, 
     DEATHS OF ASTRONAUTS,'' after ``FORCES''.
       (B) The item relating to section 2201 in the table of 
     sections for subchapter C of chapter 11 is amended by 
     inserting ``, deaths of astronauts,'' after ``Forces''.

[[Page S12553]]

       (3) Effective date.--The amendments made by this subsection 
     shall apply to estates of decedents dying after December 31, 
     2002.

                 TITLE II--UNIFORM DEFINITION OF CHILD

     SEC. 201. UNIFORM DEFINITION OF CHILD, ETC.

       Section 152 is amended to read as follows:

     ``SEC. 152. DEPENDENT DEFINED.

       ``(a) In General.--For purposes of this subtitle, the term 
     `dependent' means--
       ``(1) a qualifying child, or
       ``(2) a qualifying relative.
       ``(b) Exceptions.--For purposes of this section--
       ``(1) Dependents ineligible.--If an individual is a 
     dependent of a taxpayer for any taxable year of such taxpayer 
     beginning in a calendar year, such individual shall be 
     treated as having no dependents for any taxable year of such 
     individual beginning in such calendar year.
       ``(2) Married dependents.--An individual shall not be 
     treated as a dependent of a taxpayer under subsection (a) if 
     such individual has made a joint return with the individual's 
     spouse under section 6013 for the taxable year beginning in 
     the calendar year in which the taxable year of the taxpayer 
     begins.
       ``(3) Citizens or nationals of other countries.--
       ``(A) In general.--The term `dependent' does not include an 
     individual who is not a citizen or national of the United 
     States unless such individual is a resident of the United 
     States or a country contiguous to the United States.
       ``(B) Exception for adopted child.--Subparagraph (A) shall 
     not exclude any child of a taxpayer (within the meaning of 
     subsection (f)(1)(B)) from the definition of `dependent' if--
       ``(i) for the taxable year of the taxpayer, the child has 
     the same principal place of abode as the taxpayer and is a 
     member of the taxpayer's household, and
       ``(ii) the taxpayer is a citizen or national of the United 
     States.
       ``(c) Qualifying Child.--For purposes of this section--
       ``(1) In general.--The term `qualifying child' means, with 
     respect to any taxpayer for any taxable year, an individual--
       ``(A) who bears a relationship to the taxpayer described in 
     paragraph (2),
       ``(B) who has the same principal place of abode as the 
     taxpayer for more than one-half of such taxable year,
       ``(C) who meets the age requirements of paragraph (3), and
       ``(D) who has not provided over one-half of such 
     individual's own support for the calendar year in which the 
     taxable year of the taxpayer begins.
       ``(2) Relationship.--For purposes of paragraph (1)(A), an 
     individual bears a relationship to the taxpayer described in 
     this paragraph if such individual is--
       ``(A) a child of the taxpayer or a descendant of such a 
     child, or
       ``(B) a brother, sister, stepbrother, or stepsister of the 
     taxpayer or a descendant of any such relative.
       ``(3) Age requirements.--
       ``(A) In general.--For purposes of paragraph (1)(C), an 
     individual meets the requirements of this paragraph if such 
     individual--
       ``(i) has not attained the age of 19 as of the close of the 
     calendar year in which the taxable year of the taxpayer 
     begins, or
       ``(ii) is a student who has not attained the age of 24 as 
     of the close of such calendar year.
       ``(B) Special rule for disabled.--In the case of an 
     individual who is permanently and totally disabled (as 
     defined in section 22(e)(3)) at any time during such calendar 
     year, the requirements of subparagraph (A) shall be treated 
     as met with respect to such individual.
       ``(4) Special rule relating to 2 or more claiming 
     qualifying child.--
       ``(A) In general.--Except as provided in subparagraph (B) 
     and subsection (e), if (but for this paragraph) an individual 
     may be and is claimed as a qualifying child by 2 or more 
     taxpayers for a taxable year beginning in the same calendar 
     year, such individual shall be treated as the qualifying 
     child of the taxpayer who is--
       ``(i) a parent of the individual, or
       ``(ii) if clause (i) does not apply, the taxpayer with the 
     highest adjusted gross income for such taxable year.
       ``(B) More than 1 parent claiming qualifying child.--If the 
     parents claiming any qualifying child do not file a joint 
     return together, such child shall be treated as the 
     qualifying child of--
       ``(i) the parent with whom the child resided for the 
     longest period of time during the taxable year, or
       ``(ii) if the child resides with both parents for the same 
     amount of time during such taxable year, the parent with the 
     highest adjusted gross income.
       ``(d) Qualifying Relative.--For purposes of this section--
       ``(1) In general.--The term `qualifying relative' means, 
     with respect to any taxpayer for any taxable year, an 
     individual--
       ``(A) who bears a relationship to the taxpayer described in 
     paragraph (2),
       ``(B) whose gross income for the calendar year in which 
     such taxable year begins is less than the exemption amount 
     (as defined in section 151(d)),
       ``(C) with respect to whom the taxpayer provides over one-
     half of the individual's support for the calendar year in 
     which such taxable year begins, and
       ``(D) who is not a qualifying child of such taxpayer or of 
     any other taxpayer for any taxable year beginning in the 
     calendar year in which such taxable year begins.
       ``(2) Relationship.--For purposes of paragraph (1)(A), an 
     individual bears a relationship to the taxpayer described in 
     this paragraph if the individual is any of the following with 
     respect to the taxpayer:
       ``(A) A child or a descendant of a child.
       ``(B) A brother, sister, stepbrother, or stepsister.
       ``(C) The father or mother, or an ancestor of either.
       ``(D) A stepfather or stepmother.
       ``(E) A son or daughter of a brother or sister of the 
     taxpayer.
       ``(F) A brother or sister of the father or mother of the 
     taxpayer.
       ``(G) A son-in-law, daughter-in-law, father-in-law, mother-
     in-law, brother-in-law, or sister-in-law.
       ``(H) An individual (other than an individual who at any 
     time during the taxable year was the spouse, determined 
     without regard to section 7703, of the taxpayer) who, for the 
     taxable year of the taxpayer, has the same principal place of 
     abode as the taxpayer and is a member of the taxpayer's 
     household.
       ``(3) Special rule relating to multiple support 
     agreements.--For purposes of paragraph (1)(C), over one-half 
     of the support of an individual for a calendar year shall be 
     treated as received from the taxpayer if--
       ``(A) no one person contributed over one-half of such 
     support,
       ``(B) over one-half of such support was received from 2 or 
     more persons each of whom, but for the fact that any such 
     person alone did not contribute over one-half of such 
     support, would have been entitled to claim such individual as 
     a dependent for a taxable year beginning in such calendar 
     year,
       ``(C) the taxpayer contributed over 10 percent of such 
     support, and
       ``(D) each person described in subparagraph (B) (other than 
     the taxpayer) who contributed over 10 percent of such support 
     files a written declaration (in such manner and form as the 
     Secretary may by regulations prescribe) that such person will 
     not claim such individual as a dependent for any taxable year 
     beginning in such calendar year.
       ``(4) Special rule relating to income of handicapped 
     dependents.--
       ``(A) In general.--For purposes of paragraph (1)(B), the 
     gross income of an individual who is permanently and totally 
     disabled (as defined in section 22(e)(3)) at any time during 
     the taxable year shall not include income attributable to 
     services performed by the individual at a sheltered workshop 
     if--
       ``(i) the availability of medical care at such workshop is 
     the principal reason for the individual's presence there, and
       ``(ii) the income arises solely from activities at such 
     workshop which are incident to such medical care.
       ``(B) Sheltered workshop defined.--For purposes of 
     subparagraph (A), the term `sheltered workshop' means a 
     school--
       ``(i) which provides special instruction or training 
     designed to alleviate the disability of the individual, and
       ``(ii) which is operated by an organization described in 
     section 501(c)(3) and exempt from tax under section 501(a), 
     or by a State, a possession of the United States, any 
     political subdivision of any of the foregoing, the United 
     States, or the District of Columbia.
       ``(5) Special rules for support.--For purposes of this 
     subsection--
       ``(A) payments to a spouse which are includible in the 
     gross income of such spouse under section 71 or 682 shall not 
     be treated as a payment by the payor spouse for the support 
     of any dependent, and
       ``(B) in the case of the remarriage of a parent, support of 
     a child received from the parent's spouse shall be treated as 
     received from the parent.
       ``(e) Special Rule for Divorced Parents.--
       ``(1) In general.--Notwithstanding subsection (c)(4) or 
     (d)(1)(C), if--
       ``(A) a child receives over one-half of the child's support 
     during the calendar year from the child's parents--
       ``(i) who are divorced or legally separated under a decree 
     of divorce or separate maintenance,
       ``(ii) who are separated under a written separation 
     agreement, or
       ``(iii) who live apart at all times during the last 6 
     months of the calendar year, and
       ``(B) such child is in the custody of 1 or both of the 
     child's parents for more than one-half of the calendar year,
     such child shall be treated as being the qualifying child or 
     qualifying relative of the noncustodial parent for a calendar 
     year if the requirements described in paragraph (2) are met.
       ``(2) Requirements.--For purposes of paragraph (1), the 
     requirements described in this paragraph are met if--
       ``(A) a decree of divorce or separate maintenance or 
     written separation agreement between the parents applicable 
     to the taxable year beginning in such calendar year provides 
     that--
       ``(i) the noncustodial parent shall be entitled to any 
     deduction allowable under section 151 for such child, or
       ``(ii) the custodial parent will sign a written declaration 
     (in such manner and form as the Secretary may prescribe) that 
     such parent will not claim such child as a dependent for such 
     taxable year, or

[[Page S12554]]

       ``(B) in the case of such an agreement executed before 
     January 1, 1985, the noncustodial parent provides at least 
     $600 for the support of such child during such calendar year.

     For purposes of subparagraph (B), amounts expended for the 
     support of a child or children shall be treated as received 
     from the noncustodial parent to the extent that such parent 
     provided amounts for such support.
       ``(3) Custodial parent and noncustodial parent.--For 
     purposes of this subsection--
       ``(A) Custodial parent.--The term `custodial parent' means 
     the parent with whom a child shared the same principal place 
     of abode for the greater portion of the calendar year.
       ``(B) Noncustodial parent.--The term `noncustodial parent' 
     means the parent who is not the custodial parent.
       ``(4) Exception for multiple-support agreements.--This 
     subsection shall not apply in any case where over one-half of 
     the support of the child is treated as having been received 
     from a taxpayer under the provision of subsection (d)(3).
       ``(f) Other Definitions and Rules.--For purposes of this 
     section--
       ``(1) Child defined.--
       ``(A) In general.--The term `child' means an individual who 
     is--
       ``(i) a son, daughter, stepson, or stepdaughter of the 
     taxpayer, or
       ``(ii) an eligible foster child of the taxpayer.
       ``(B) Adopted child.--In determining whether any of the 
     relationships specified in subparagraph (A)(i) or paragraph 
     (4) exists, a legally adopted individual of the taxpayer, or 
     an individual who is placed with the taxpayer by an 
     authorized placement agency for adoption by the taxpayer, 
     shall be treated as a child of such individual by blood.
       ``(C) Eligible foster child.--For purposes of subparagraph 
     (A)(ii), the term `eligible foster child' means an individual 
     who is placed with the taxpayer by an authorized placement 
     agency or by judgment, decree, or other order of any court of 
     competent jurisdiction.
       ``(2) Student defined.--The term `student' means an 
     individual who during each of 5 calendar months during the 
     calendar year in which the taxable year of the taxpayer 
     begins--
       ``(A) is a full-time student at an educational organization 
     described in section 170(b)(1)(A)(ii), or
       ``(B) is pursuing a full-time course of institutional on-
     farm training under the supervision of an accredited agent of 
     an educational organization described in section 
     170(b)(1)(A)(ii) or of a State or political subdivision of a 
     State.
       ``(3) Determination of household status.--An individual 
     shall not be treated as a member of the taxpayer's household 
     if at any time during the taxable year of the taxpayer the 
     relationship between such individual and the taxpayer is in 
     violation of local law.
       ``(4) Brother and sister.--The terms `brother' and `sister' 
     include a brother or sister by the half blood.
       ``(5) Special support test in case of students.--For 
     purposes of subsections (c)(1)(D) and (d)(1)(C), in the case 
     of an individual who is--
       ``(A) a child of the taxpayer, and
       ``(B) a student,

     amounts received as scholarships for study at an educational 
     organization described in section 170(b)(1)(A)(ii) shall not 
     be taken into account.
       ``(6) Treatment of missing children.--
       ``(A) In general.--Solely for the purposes referred to in 
     subparagraph (B), a child of the taxpayer--
       ``(i) who is presumed by law enforcement authorities to 
     have been kidnapped by someone who is not a member of the 
     family of such child or the taxpayer, and
       ``(ii) who had, for the taxable year in which the 
     kidnapping occurred, the same principal place of abode as the 
     taxpayer for more than one-half of the portion of such year 
     before the date of the kidnapping,
     shall be treated as meeting the requirement of subsection 
     (c)(1)(B) with respect to a taxpayer for all taxable years 
     ending during the period that the child is kidnapped.
       ``(B) Purposes.--Subparagraph (A) shall apply solely for 
     purposes of determining--
       ``(i) the deduction under section 151(c),
       ``(ii) the credit under section 24 (relating to child tax 
     credit),
       ``(iii) whether an individual is a surviving spouse or a 
     head of a household (as such terms are defined in section 2), 
     and
       ``(iv) the earned income credit under section 32.
       ``(C) Comparable treatment of certain qualifying 
     relatives.--For purposes of this section, a child of the 
     taxpayer--
       ``(i) who is presumed by law enforcement authorities to 
     have been kidnapped by someone who is not a member of the 
     family of such child or the taxpayer, and
       ``(ii) who was (without regard to this paragraph) a 
     qualifying relative of the taxpayer for the portion of the 
     taxable year before the date of the kidnapping,
     shall be treated as a qualifying relative of the taxpayer for 
     all taxable years ending during the period that the child is 
     kidnapped.
       ``(D) Termination of treatment.--Subparagraphs (A) and (C) 
     shall cease to apply as of the first taxable year of the 
     taxpayer beginning after the calendar year in which there is 
     a determination that the child is dead (or, if earlier, in 
     which the child would have attained age 18).
       ``(7) Cross references.--

``For provision treating child as dependent of both parents for 
purposes of certain provisions, see sections 105(b), 132(h)(2)(B), and 
213(d)(5).''.

     SEC. 202. MODIFICATIONS OF DEFINITION OF HEAD OF HOUSEHOLD.

       (a) Head of Household.--Clause (i) of section 2(b)(1)(A) is 
     amended to read as follows:
       ``(i) a qualifying child of the individual (as defined in 
     section 152(c), determined without regard to section 152(e)), 
     but not if such child--

       ``(I) is married at the close of the taxpayer's taxable 
     year, and
       ``(II) is not a dependent of such individual by reason of 
     section 152(b)(2) or 152(b)(3), or both, or''.

       (b) Conforming Amendments.--
       (1) Section 2(b)(2) is amended by striking subparagraph (A) 
     and by redesignating subparagraphs (B), (C), and (D) as 
     subparagraphs (A), (B), and (C), respectively.
       (2) Clauses (i) and (ii) of section 2(b)(3)(B) are amended 
     to read as follows:
       ``(i) subparagraph (H) of section 152(d)(2), or
       ``(ii) paragraph (3) of section 152(d).''.

     SEC. 203. MODIFICATIONS OF DEPENDENT CARE CREDIT.

       (a) In General.--Section 21(a)(1) is amended by striking 
     ``In the case of an individual who maintains a household 
     which includes as a member one or more qualifying individuals 
     (as defined in subsection (b)(1))'' and inserting ``In the 
     case of an individual for which there are 1 or more 
     qualifying individuals (as defined in subsection (b)(1)) with 
     respect to such individual''.
       (b) Qualifying Individual.--Paragraph (1) of section 21(b) 
     is amended to read as follows:
       ``(1) Qualifying individual.--The term `qualifying 
     individual' means--
       ``(A) a dependent of the taxpayer (as defined in section 
     152(a)(1)) who has not attained age 13,
       ``(B) a dependent of the taxpayer who is physically or 
     mentally incapable of caring for himself or herself and who 
     has the same principal place of abode as the taxpayer for 
     more than one-half of such taxable year, or
       ``(C) the spouse of the taxpayer, if the spouse is 
     physically or mentally incapable of caring for himself or 
     herself and who has the same principal place of abode as the 
     taxpayer for more than one-half of such taxable year.''.
       (c) Conforming Amendment.--Paragraph (1) of section 21(e) 
     is amended to read as follows:
       ``(1) Place of abode.--An individual shall not be treated 
     as having the same principal place of abode of the taxpayer 
     if at any time during the taxable year of the taxpayer the 
     relationship between the individual and the taxpayer is in 
     violation of local law.''.

     SEC. 204. MODIFICATIONS OF CHILD TAX CREDIT.

       (a) In General.--Paragraph (1) of section 24(c) is amended 
     to read as follows:
       ``(1) In general.--The term `qualifying child' means a 
     qualifying child of the taxpayer (as defined in section 
     152(c)) who has not attained age 17.''.
       (b) Conforming Amendment.--Section 24(c)(2) is amended by 
     striking ``the first sentence of section 152(b)(3)'' and 
     inserting ``subparagraph (A) of section 152(b)(3)''.

     SEC. 205. MODIFICATIONS OF EARNED INCOME CREDIT.

       (a) Qualifying Child.--Paragraph (3) of section 32(c) is 
     amended to read as follows:
       ``(3) Qualifying child.--
       ``(A) In general.--The term `qualifying child' means a 
     qualifying child of the taxpayer (as defined in section 
     152(c), determined without regard to paragraph (1)(D) thereof 
     and section 152(e)).
       ``(B) Married individual.--The term `qualifying child' 
     shall not include an individual who is married as of the 
     close of the taxpayer's taxable year unless the taxpayer is 
     entitled to a deduction under section 151 for such taxable 
     year with respect to such individual (or would be so entitled 
     but for section 152(e)).
       ``(C) Place of abode.--For purposes of subparagraph (A), 
     the requirements of section 152(c)(1)(B) shall be met only if 
     the principal place of abode is in the United States.
       ``(D) Identification requirements.--
       ``(i) In general.--A qualifying child shall not be taken 
     into account under subsection (b) unless the taxpayer 
     includes the name, age, and TIN of the qualifying child on 
     the return of tax for the taxable year.
       ``(ii) Other methods.--The Secretary may prescribe other 
     methods for providing the information described in clause 
     (i).''.
       (b) Conforming Amendments.--
       (1) Section 32(c)(1) is amended by striking subparagraph 
     (C) and by redesignating subparagraphs (D), (E), (F), and (G) 
     as subparagraphs (C), (D), (E), and (F), respectively.
       (2) Section 32(c)(4) is amended by striking ``(3)(E)'' and 
     inserting ``(3)(C)''.
       (3) Section 32(m) is amended by striking ``subsections 
     (c)(1)(F)'' and inserting ``subsections (c)(1)(E)''.

     SEC. 206. MODIFICATIONS OF DEDUCTION FOR PERSONAL EXEMPTION 
                   FOR DEPENDENTS.

       Subsection (c) of section 151 is amended to read as 
     follows:
       ``(c) Additional Exemption for Dependents.--An exemption of 
     the exemption amount for each individual who is a dependent 
     (as defined in section 152) of the taxpayer for the taxable 
     year.''.

[[Page S12555]]

     SEC. 207. TECHNICAL AND CONFORMING AMENDMENTS.

       (1) Section 2(a)(1)(B)(i) is amended by inserting ``, 
     determined without regard to subsections (b)(1), (b)(2), and 
     (d)(1)(B) thereof'' after ``section 152''.
       (2) Section 21(e)(5) is amended--
       (A) by striking ``paragraph (2) or (4) of'' in subparagraph 
     (A), and
       (B) by striking ``within the meaning of section 152(e)(1)'' 
     and inserting ``as defined in section 152(e)(3)(A)''.
       (3) Section 21(e)(6)(B) is amended by striking ``section 
     151(c)(3)'' and inserting ``section 152(f)(1)''.
       (4) Section 25B(c)(2)(B) is amended by striking 
     ``151(c)(4)'' and inserting ``152(f)(2)''.
       (5)(A) Subparagraphs (A) and (B) of section 51(i)(1) are 
     each amended by striking ``paragraphs (1) through (8) of 
     section 152(a)'' both places it appears and inserting 
     ``subparagraphs (A) through (G) of section 152(d)(2)''.
       (B) Section 51(i)(1)(C) is amended by striking 
     ``152(a)(9)'' and inserting ``152(d)(2)(H)''.
       (6) Section 72(t)(2)(D)(i)(III) is amended by inserting ``, 
     determined without regard to subsections (b)(1), (b)(2), and 
     (d)(1)(B) thereof'' after ``section 152''.
       (7) Section 72(t)(7)(A)(iii) is amended by striking 
     ``151(c)(3)'' and inserting ``152(f)(1)''.
       (8) Section 42(i)(3)(D)(ii)(I) is amended by inserting ``, 
     determined without regard to subsections (b)(1), (b)(2), and 
     (d)(1)(B) thereof'' after ``section 152''.
       (9) Subsections (b) and (c)(1) of section 105 are amended 
     by inserting ``, determined without regard to subsections 
     (b)(1), (b)(2), and (d)(1)(B) thereof'' after ``section 
     152''.
       (10) Section 120(d)(4) is amended by inserting 
     ``(determined without regard to subsections (b)(1), (b)(2), 
     and (d)(1)(B) thereof)'' after ``section 152''.
       (11) Section 125(e)(1)(D) is amended by inserting ``, 
     determined without regard to subsections (b)(1), (b)(2), and 
     (d)(1)(B) thereof'' after ``section 152''.
       (12) Section 129(c)(2) is amended by striking ``151(c)(3)'' 
     and inserting ``152(f)(1)''.
       (13) The first sentence of section 132(h)(2)(B) is amended 
     by striking ``151(c)(3)'' and inserting ``152(f)(1)''.
       (14) Section 153 is amended by striking paragraph (1) and 
     by redesignating paragraphs (2), (3), and (4) as paragraphs 
     (1), (2), and (3), respectively.
       (15) Section 170(g)(1) is amended by inserting 
     ``(determined without regard to subsections (b)(1), (b)(2), 
     and (d)(1)(B) thereof)'' after ``section 152''.
       (16) Section 170(g)(3) is amended by striking ``paragraphs 
     (1) through (8) of section 152(a)'' and inserting 
     ``subparagraphs (A) through (G) of section 152(d)(2)''.
       (17) Section 213(a) is amended by inserting ``, determined 
     without regard to subsections (b)(1), (b)(2), and (d)(1)(B) 
     thereof'' after ``section 152''.
       (18) The second sentence of section 213(d)(11) is amended 
     by striking ``paragraphs (1) through (8) of section 152(a)'' 
     and inserting ``subparagraphs (A) through (G) of section 
     152(d)(2)''.
       (19) Section 220(d)(2)(A) is amended by inserting ``, 
     determined without regard to subsections (b)(1), (b)(2), and 
     (d)(1)(B) thereof'' after ``section 152''.
       (20) Section 221(d)(4) is amended by inserting 
     ``(determined without regard to subsections (b)(1), (b)(2), 
     and (d)(1)(B) thereof)'' after ``section 152''.
       (21) Section 529(e)(2)(B) is amended by striking 
     ``paragraphs (1) through (8) of section 152(a)'' and 
     inserting ``subparagraphs (A) through (G) of section 
     152(d)(2)''.
       (22) Section 2032A(c)(7)(D) is amended by striking 
     ``section 151(c)(4)'' and inserting ``section 152(f)(2)''.
       (23) Section 2057(d)(2)(B) is amended by inserting ``, 
     determined without regard to subsections (b)(1), (b)(2), and 
     (d)(1)(B) thereof'' after ``section 152''.
       (24) Section 7701(a)(17) is amended by striking 
     ``152(b)(4), 682,'' and inserting ``682''.
       (25) Section 7702B(f)(2)(C)(iii) is amended by striking 
     ``paragraphs (1) through (8) of section 152(a)'' and 
     inserting ``subparagraphs (A) through (G) of section 
     152(d)(2)''.
       (26) Section 7703(b)(1) is amended--
       (A) by striking ``151(c)(3)'' and inserting ``152(f)(1)'', 
     and
       (B) by striking ``paragraph (2) or (4) of''.

     SEC. 208. EFFECTIVE DATE.

       The amendments made by this title shall apply to taxable 
     years beginning after December 31, 2003.

                      TITLE III--CHILD TAX CREDIT

     SEC. 301. ACCELERATION OF INCREASE IN REFUNDABILITY OF THE 
                   CHILD TAX CREDIT.

       (a) Acceleration of Refundability.--
       (1) In general.--Section 24(d)(1)(B)(i) (relating to 
     portion of credit refundable) is amended by striking ``(10 
     percent in the case of taxable years beginning before January 
     1, 2005)''.
       (2) Advance payment.--Subsection (b) of section 6429 
     (relating to advance payment of portion of increased child 
     credit for 2003) 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 new paragraph:
       ``(4) section 24(d)(1)(B)(i) applied without regard to the 
     first parenthetical therein.''.
       (3) Earned income includes combat pay.--Section 24(d)(1) is 
     amended by adding at the end the following new sentence: 
     ``For purposes of subparagraph (B), any amount excluded from 
     gross income by reason of section 112 shall be treated as 
     earned income which is taken into account in computing 
     taxable income for the taxable year.''.
       (b) Effective Dates.--
       (1) Subsections (a)(1) and (a)(3).--The amendments made by 
     subsections (a)(1) and (a)(3) shall apply to taxable years 
     beginning after December 31, 2002.
       (2) Subsection (a)(2).--The amendments made by subsection 
     (a)(2) shall take effect as if included in the amendments 
     made by section 101(b) of the Jobs and Growth Tax Relief 
     Reconciliation Act of 2003.

     SEC. 302. REDUCTION IN MARRIAGE PENALTY IN CHILD TAX CREDIT.

       (a) In General.--Section 24(b)(2) (defining threshold 
     amount) is amended--
       (1) by inserting ``($115,000 for taxable years beginning in 
     2008 or 2009, and $150,000 for taxable years beginning in 
     2010)'' after ``$110,000'', and
       (2) by striking ``$55,000'' in subparagraph (C) and 
     inserting ``\1/2\ of the amount in effect under subparagraph 
     (A)''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2002.

     SEC. 303. APPLICATION OF EGTRRA SUNSET TO THIS SECTION.

       Each amendment made by this title shall be subject to title 
     IX of the Economic Growth and Tax Relief Reconciliation Act 
     of 2001 to the same extent and in the same manner as the 
     provision of such Act to which such amendment relates.

                       TITLE IV--OTHER PROVISIONS

     SEC. 401. EXTENSION OF INTERNAL REVENUE SERVICE USER FEES.

       (a) In General.--Chapter 77 (relating to miscellaneous 
     provisions) is amended by adding at the end the following new 
     section:

     ``SEC. 7528. INTERNAL REVENUE SERVICE USER FEES.

       ``(a) General Rule.--The Secretary shall establish a 
     program requiring the payment of user fees for--
       ``(1) requests to the Internal Revenue Service for ruling 
     letters, opinion letters, and determination letters, and
       ``(2) other similar requests.
       ``(b) Program Criteria.--
       ``(1) In general.--The fees charged under the program 
     required by subsection (a)--
       ``(A) shall vary according to categories (or subcategories) 
     established by the Secretary,
       ``(B) shall be determined after taking into account the 
     average time for (and difficulty of) complying with requests 
     in each category (and subcategory), and
       ``(C) shall be payable in advance.
       ``(2) Exemptions, etc.--
       ``(A) In general.--The Secretary shall provide for such 
     exemptions (and reduced fees) under such program as the 
     Secretary determines to be appropriate.
       ``(B) Exemption for certain requests regarding pension 
     plans.--The Secretary shall not require payment of user fees 
     under such program for requests for determination letters 
     with respect to the qualified status of a pension benefit 
     plan maintained solely by 1 or more eligible employers or any 
     trust which is part of the plan. The preceding sentence shall 
     not apply to any request--
       ``(i) made after the later of--

       ``(I) the fifth plan year the pension benefit plan is in 
     existence, or
       ``(II) the end of any remedial amendment period with 
     respect to the plan beginning within the first 5 plan years, 
     or

       ``(ii) made by the sponsor of any prototype or similar plan 
     which the sponsor intends to market to participating 
     employers.
       ``(C) Definitions and special rules.--For purposes of 
     subparagraph (B)--
       ``(i) Pension benefit plan.--The term `pension benefit 
     plan' means a pension, profit-sharing, stock bonus, annuity, 
     or employee stock ownership plan.
       ``(ii) Eligible employer.--The term `eligible employer' 
     means an eligible employer (as defined in section 
     408(p)(2)(C)(i)(I)) which has at least 1 employee who is not 
     a highly compensated employee (as defined in section 414(q)) 
     and is participating in the plan. The determination of 
     whether an employer is an eligible employer under 
     subparagraph (B) shall be made as of the date of the request 
     described in such subparagraph.
       ``(iii) Determination of average fees charged.--For 
     purposes of any determination of average fees charged, any 
     request to which subparagraph (B) applies shall not be taken 
     into account.
       ``(3) Average fee requirement.--The average fee charged 
     under the program required by subsection (a) shall not be 
     less than the amount determined under the following table:

                                                                Average
``Category                                                          fee
  Employee plan ruling and opinion............................$250 ....

  Exempt organization ruling..................................$350 ....

  Employee plan determination.................................$300 ....

  Exempt organization determination...........................$275 ....

  Chief counsel ruling........................................$200.....

       ``(c) Termination.--No fee shall be imposed under this 
     section with respect to requests made after September 30, 
     2013.''.
       (b) Conforming Amendments.--
       (1) The table of sections for chapter 77 is amended by 
     adding at the end the following new item:

``Sec. 7528. Internal Revenue Service user fees.''.
       (2) Section 10511 of the Revenue Act of 1987 is repealed.

[[Page S12556]]

       (3) Section 620 of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 is repealed.
       (c) Limitations.--Notwithstanding any other provision of 
     law, any fees collected pursuant to section 7528 of the 
     Internal Revenue Code of 1986, as added by subsection (a), 
     shall not be expended by the Internal Revenue Service unless 
     provided by an appropriations Act.
       (d) Effective Date.--The amendments made by this section 
     shall apply to requests made after the date of the enactment 
     of this Act.

     SEC. 402. PARTIAL PAYMENT OF TAX LIABILITY IN INSTALLMENT 
                   AGREEMENTS.

       (a) In General.--
       (1) Section 6159(a) (relating to authorization of 
     agreements) is amended--
       (A) by striking ``satisfy liability for payment of'' and 
     inserting ``make payment on'', and
       (B) by inserting ``full or partial'' after ``facilitate''.
       (2) Section 6159(c) (relating to Secretary required to 
     enter into installment agreements in certain cases) is 
     amended in the matter preceding paragraph (1) by inserting 
     ``full'' before ``payment''.
       (b) Requirement To Review Partial Payment Agreements Every 
     Two Years.--Section 6159 is amended by redesignating 
     subsections (d) and (e) as subsections (e) and (f), 
     respectively, and inserting after subsection (c) the 
     following new subsection:
       ``(d) Secretary Required To Review Installment Agreements 
     for Partial Collection Every Two Years.--In the case of an 
     agreement entered into by the Secretary under subsection (a) 
     for partial collection of a tax liability, the Secretary 
     shall review the agreement at least once every 2 years.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to agreements entered into on or after the date 
     of the enactment of this Act.

     SEC. 403. REVISION OF TAX RULES ON EXPATRIATION.

       (a) In General.--Subpart A of part II of subchapter N of 
     chapter 1 is amended by inserting after section 877 the 
     following new section:

     ``SEC. 877A. TAX RESPONSIBILITIES OF EXPATRIATION.

       ``(a) General Rules.--For purposes of this subtitle--
       ``(1) Mark to market.--Except as provided in subsections 
     (d) and (f), all property of a covered expatriate to whom 
     this section applies shall be treated as sold on the day 
     before the expatriation date for its fair market value.
       ``(2) Recognition of gain or loss.--In the case of any sale 
     under paragraph (1)--
       ``(A) notwithstanding any other provision of this title, 
     any gain arising from such sale shall be taken into account 
     for the taxable year of the sale, and
       ``(B) any loss arising from such sale shall be taken into 
     account for the taxable year of the sale to the extent 
     otherwise provided by this title, except that section 1091 
     shall not apply to any such loss.

     Proper adjustment shall be made in the amount of any gain or 
     loss subsequently realized for gain or loss taken into 
     account under the preceding sentence.
       ``(3) Exclusion for certain gain.--
       ``(A) In general.--The amount which, but for this 
     paragraph, would be includible in the gross income of any 
     individual by reason of this section shall be reduced (but 
     not below zero) by $600,000. For purposes of this paragraph, 
     allocable expatriation gain taken into account under 
     subsection (f)(2) shall be treated in the same manner as an 
     amount required to be includible in gross income.
       ``(B) Cost-of-living adjustment.--
       ``(i) In general.--In the case of an expatriation date 
     occurring in any calendar year after 2003, the $600,000 
     amount under subparagraph (A) shall be increased by an amount 
     equal to--

       ``(I) such dollar amount, multiplied by
       ``(II) the cost-of-living adjustment determined under 
     section 1(f)(3) for such calendar year, determined by 
     substituting `calendar year 2002' for `calendar year 1992' in 
     subparagraph (B) thereof.

       ``(ii) Rounding rules.--If any amount after adjustment 
     under clause (i) is not a multiple of $1,000, such amount 
     shall be rounded to the next lower multiple of $1,000.
       ``(4) Election to continue to be taxed as united states 
     citizen.--
       ``(A) In general.--If a covered expatriate elects the 
     application of this paragraph--
       ``(i) this section (other than this paragraph and 
     subsection (i)) shall not apply to the expatriate, but
       ``(ii) in the case of property to which this section would 
     apply but for such election, the expatriate shall be subject 
     to tax under this title in the same manner as if the 
     individual were a United States citizen.
       ``(B) Requirements.--Subparagraph (A) shall not apply to an 
     individual unless the individual--
       ``(i) provides security for payment of tax in such form and 
     manner, and in such amount, as the Secretary may require,
       ``(ii) consents to the waiver of any right of the 
     individual under any treaty of the United States which would 
     preclude assessment or collection of any tax which may be 
     imposed by reason of this paragraph, and
       ``(iii) complies with such other requirements as the 
     Secretary may prescribe.
       ``(C) Election.--An election under subparagraph (A) shall 
     apply to all property to which this section would apply but 
     for the election and, once made, shall be irrevocable. Such 
     election shall also apply to property the basis of which is 
     determined in whole or in part by reference to the property 
     with respect to which the election was made.
       ``(b) Election To Defer Tax.--
       ``(1) In general.--If the taxpayer elects the application 
     of this subsection with respect to any property treated as 
     sold by reason of subsection (a), the payment of the 
     additional tax attributable to such property shall be 
     postponed until the due date of the return for the taxable 
     year in which such property is disposed of (or, in the case 
     of property disposed of in a transaction in which gain is not 
     recognized in whole or in part, until such other date as the 
     Secretary may prescribe).
       ``(2) Determination of tax with respect to property.--For 
     purposes of paragraph (1), the additional tax attributable to 
     any property is an amount which bears the same ratio to the 
     additional tax imposed by this chapter for the taxable year 
     solely by reason of subsection (a) as the gain taken into 
     account under subsection (a) with respect to such property 
     bears to the total gain taken into account under subsection 
     (a) with respect to all property to which subsection (a) 
     applies.
       ``(3) Termination of postponement.--No tax may be postponed 
     under this subsection later than the due date for the return 
     of tax imposed by this chapter for the taxable year which 
     includes the date of death of the expatriate (or, if earlier, 
     the time that the security provided with respect to the 
     property fails to meet the requirements of paragraph (4), 
     unless the taxpayer corrects such failure within the time 
     specified by the Secretary).
       ``(4) Security.--
       ``(A) In general.--No election may be made under paragraph 
     (1) with respect to any property unless adequate security is 
     provided to the Secretary with respect to such property.
       ``(B) Adequate security.--For purposes of subparagraph (A), 
     security with respect to any property shall be treated as 
     adequate security if--
       ``(i) it is a bond in an amount equal to the deferred tax 
     amount under paragraph (2) for the property, or
       ``(ii) the taxpayer otherwise establishes to the 
     satisfaction of the Secretary that the security is adequate.
       ``(5) Waiver of certain rights.--No election may be made 
     under paragraph (1) unless the taxpayer consents to the 
     waiver of any right under any treaty of the United States 
     which would preclude assessment or collection of any tax 
     imposed by reason of this section.
       ``(6) Elections.--An election under paragraph (1) shall 
     only apply to property described in the election and, once 
     made, is irrevocable. An election may be made under paragraph 
     (1) with respect to an interest in a trust with respect to 
     which gain is required to be recognized under subsection 
     (f)(1).
       ``(7) Interest.--For purposes of section 6601--
       ``(A) the last date for the payment of tax shall be 
     determined without regard to the election under this 
     subsection, and
       ``(B) section 6621(a)(2) shall be applied by substituting 
     `5 percentage points' for `3 percentage points' in 
     subparagraph (B) thereof.
       ``(c) Covered Expatriate.--For purposes of this section--
       ``(1) In general.--Except as provided in paragraph (2), the 
     term `covered expatriate' means an expatriate.
       ``(2) Exceptions.--An individual shall not be treated as a 
     covered expatriate if--
       ``(A) the individual--
       ``(i) became at birth a citizen of the United States and a 
     citizen of another country and, as of the expatriation date, 
     continues to be a citizen of, and is taxed as a resident of, 
     such other country, and
       ``(ii) has not been a resident of the United States (as 
     defined in section 7701(b)(1)(A)(ii)) during the 5 taxable 
     years ending with the taxable year during which the 
     expatriation date occurs, or
       ``(B)(i) the individual's relinquishment of United States 
     citizenship occurs before such individual attains age 18\1/
     2\, and
       ``(ii) the individual has been a resident of the United 
     States (as so defined) for not more than 5 taxable years 
     before the date of relinquishment.
       ``(d) Exempt Property; Special Rules for Pension Plans.--
       ``(1) Exempt property.--This section shall not apply to the 
     following:
       ``(A) United states real property interests.--Any United 
     States real property interest (as defined in section 
     897(c)(1)), other than stock of a United States real property 
     holding corporation which does not, on the day before the 
     expatriation date, meet the requirements of section 
     897(c)(2).
       ``(B) Specified property.--Any property or interest in 
     property not described in subparagraph (A) which the 
     Secretary specifies in regulations.
       ``(2) Special rules for certain retirement plans.--
       ``(A) In general.--If a covered expatriate holds on the day 
     before the expatriation date any interest in a retirement 
     plan to which this paragraph applies--
       ``(i) such interest shall not be treated as sold for 
     purposes of subsection (a)(1), but
       ``(ii) an amount equal to the present value of the 
     expatriate's nonforfeitable accrued benefit shall be treated 
     as having been received by such individual on such date as a 
     distribution under the plan.

[[Page S12557]]

       ``(B) Treatment of subsequent distributions.--In the case 
     of any distribution on or after the expatriation date to or 
     on behalf of the covered expatriate from a plan from which 
     the expatriate was treated as receiving a distribution under 
     subparagraph (A), the amount otherwise includible in gross 
     income by reason of the subsequent distribution shall be 
     reduced by the excess of the amount includible in gross 
     income under subparagraph (A) over any portion of such amount 
     to which this subparagraph previously applied.
       ``(C) Treatment of subsequent distributions by plan.--For 
     purposes of this title, a retirement plan to which this 
     paragraph applies, and any person acting on the plan's 
     behalf, shall treat any subsequent distribution described in 
     subparagraph (B) in the same manner as such distribution 
     would be treated without regard to this paragraph.
       ``(D) Applicable plans.--This paragraph shall apply to--
       ``(i) any qualified retirement plan (as defined in section 
     4974(c)),
       ``(ii) an eligible deferred compensation plan (as defined 
     in section 457(b)) of an eligible employer described in 
     section 457(e)(1)(A), and
       ``(iii) to the extent provided in regulations, any foreign 
     pension plan or similar retirement arrangements or programs.
       ``(e) Definitions.--For purposes of this section--
       ``(1) Expatriate.--The term `expatriate' means--
       ``(A) any United States citizen who relinquishes 
     citizenship, and
       ``(B) any long-term resident of the United States who--
       ``(i) ceases to be a lawful permanent resident of the 
     United States (within the meaning of section 7701(b)(6)), or
       ``(ii) commences to be treated as a resident of a foreign 
     country under the provisions of a tax treaty between the 
     United States and the foreign country and who does not waive 
     the benefits of such treaty applicable to residents of the 
     foreign country.
       ``(2) Expatriation date.--The term `expatriation date' 
     means--
       ``(A) the date an individual relinquishes United States 
     citizenship, or
       ``(B) in the case of a long-term resident of the United 
     States, the date of the event described in clause (i) or (ii) 
     of paragraph (1)(B).
       ``(3) Relinquishment of citizenship.--A citizen shall be 
     treated as relinquishing United States citizenship on the 
     earliest of--
       ``(A) the date the individual renounces such individual's 
     United States nationality before a diplomatic or consular 
     officer of the United States pursuant to paragraph (5) of 
     section 349(a) of the Immigration and Nationality Act (8 
     U.S.C. 1481(a)(5)),
       ``(B) the date the individual furnishes to the United 
     States Department of State a signed statement of voluntary 
     relinquishment of United States nationality confirming the 
     performance of an act of expatriation specified in paragraph 
     (1), (2), (3), or (4) of section 349(a) of the Immigration 
     and Nationality Act (8 U.S.C. 1481(a)(1)-(4)),
       ``(C) the date the United States Department of State issues 
     to the individual a certificate of loss of nationality, or
       ``(D) the date a court of the United States cancels a 
     naturalized citizen's certificate of naturalization.

     Subparagraph (A) or (B) shall not apply to any individual 
     unless the renunciation or voluntary relinquishment is 
     subsequently approved by the issuance to the individual of a 
     certificate of loss of nationality by the United States 
     Department of State.
       ``(4) Long-term resident.--The term `long-term resident' 
     has the meaning given to such term by section 877(e)(2).
       ``(f) Special Rules Applicable to Beneficiaries' Interests 
     in Trust.--
       ``(1) In general.--Except as provided in paragraph (2), if 
     an individual is determined under paragraph (3) to hold an 
     interest in a trust on the day before the expatriation date--
       ``(A) the individual shall not be treated as having sold 
     such interest,
       ``(B) such interest shall be treated as a separate share in 
     the trust, and
       ``(C)(i) such separate share shall be treated as a separate 
     trust consisting of the assets allocable to such share,
       ``(ii) the separate trust shall be treated as having sold 
     its assets on the day before the expatriation date for their 
     fair market value and as having distributed all of its assets 
     to the individual as of such time, and
       ``(iii) the individual shall be treated as having 
     recontributed the assets to the separate trust.

     Subsection (a)(2) shall apply to any income, gain, or loss of 
     the individual arising from a distribution described in 
     subparagraph (C)(ii). In determining the amount of such 
     distribution, proper adjustments shall be made for 
     liabilities of the trust allocable to an individual's share 
     in the trust.
       ``(2) Special rules for interests in qualified trusts.--
       ``(A) In general.--If the trust interest described in 
     paragraph (1) is an interest in a qualified trust--
       ``(i) paragraph (1) and subsection (a) shall not apply, and
       ``(ii) in addition to any other tax imposed by this title, 
     there is hereby imposed on each distribution with respect to 
     such interest a tax in the amount determined under 
     subparagraph (B).
       ``(B) Amount of tax.--The amount of tax under subparagraph 
     (A)(ii) shall be equal to the lesser of--
       ``(i) the highest rate of tax imposed by section 1(e) for 
     the taxable year which includes the day before the 
     expatriation date, multiplied by the amount of the 
     distribution, or
       ``(ii) the balance in the deferred tax account immediately 
     before the distribution determined without regard to any 
     increases under subparagraph (C)(ii) after the 30th day 
     preceding the distribution.
       ``(C) Deferred tax account.--For purposes of subparagraph 
     (B)(ii)--
       ``(i) Opening balance.--The opening balance in a deferred 
     tax account with respect to any trust interest is an amount 
     equal to the tax which would have been imposed on the 
     allocable expatriation gain with respect to the trust 
     interest if such gain had been included in gross income under 
     subsection (a).
       ``(ii) Increase for interest.--The balance in the deferred 
     tax account shall be increased by the amount of interest 
     determined (on the balance in the account at the time the 
     interest accrues), for periods after the 90th day after the 
     expatriation date, by using the rates and method applicable 
     under section 6621 for underpayments of tax for such periods, 
     except that section 6621(a)(2) shall be applied by 
     substituting `5 percentage points' for `3 percentage points' 
     in subparagraph (B) thereof.
       ``(iii) Decrease for taxes previously paid.--The balance in 
     the tax deferred account shall be reduced--

       ``(I) by the amount of taxes imposed by subparagraph (A) on 
     any distribution to the person holding the trust interest, 
     and
       ``(II) in the case of a person holding a nonvested 
     interest, to the extent provided in regulations, by the 
     amount of taxes imposed by subparagraph (A) on distributions 
     from the trust with respect to nonvested interests not held 
     by such person.

       ``(D) Allocable expatriation gain.--For purposes of this 
     paragraph, the allocable expatriation gain with respect to 
     any beneficiary's interest in a trust is the amount of gain 
     which would be allocable to such beneficiary's vested and 
     nonvested interests in the trust if the beneficiary held 
     directly all assets allocable to such interests.
       ``(E) Tax deducted and withheld.--
       ``(i) In general.--The tax imposed by subparagraph (A)(ii) 
     shall be deducted and withheld by the trustees from the 
     distribution to which it relates.
       ``(ii) Exception where failure to waive treaty rights.--If 
     an amount may not be deducted and withheld under clause (i) 
     by reason of the distributee failing to waive any treaty 
     right with respect to such distribution--

       ``(I) the tax imposed by subparagraph (A)(ii) shall be 
     imposed on the trust and each trustee shall be personally 
     liable for the amount of such tax, and
       ``(II) any other beneficiary of the trust shall be entitled 
     to recover from the distributee the amount of such tax 
     imposed on the other beneficiary.

       ``(F) Disposition.--If a trust ceases to be a qualified 
     trust at any time, a covered expatriate disposes of an 
     interest in a qualified trust, or a covered expatriate 
     holding an interest in a qualified trust dies, then, in lieu 
     of the tax imposed by subparagraph (A)(ii), there is hereby 
     imposed a tax equal to the lesser of--
       ``(i) the tax determined under paragraph (1) as if the day 
     before the expatriation date were the date of such cessation, 
     disposition, or death, whichever is applicable, or
       ``(ii) the balance in the tax deferred account immediately 
     before such date.
     Such tax shall be imposed on the trust and each trustee shall 
     be personally liable for the amount of such tax and any other 
     beneficiary of the trust shall be entitled to recover from 
     the covered expatriate or the estate the amount of such tax 
     imposed on the other beneficiary.
       ``(G) Definitions and special rules.--For purposes of this 
     paragraph--
       ``(i) Qualified trust.--The term `qualified trust' means a 
     trust which is described in section 7701(a)(30)(E).
       ``(ii) Vested interest.--The term `vested interest' means 
     any interest which, as of the day before the expatriation 
     date, is vested in the beneficiary.
       ``(iii) Nonvested interest.--The term `nonvested interest' 
     means, with respect to any beneficiary, any interest in a 
     trust which is not a vested interest. Such interest shall be 
     determined by assuming the maximum exercise of discretion in 
     favor of the beneficiary and the occurrence of all 
     contingencies in favor of the beneficiary.
       ``(iv) Adjustments.--The Secretary may provide for such 
     adjustments to the bases of assets in a trust or a deferred 
     tax account, and the timing of such adjustments, in order to 
     ensure that gain is taxed only once.
       ``(v) Coordination with retirement plan rules.--This 
     subsection shall not apply to an interest in a trust which is 
     part of a retirement plan to which subsection (d)(2) applies.
       ``(3) Determination of beneficiaries' interest in trust.--
       ``(A) Determinations under paragraph (1).--For purposes of 
     paragraph (1), a beneficiary's interest in a trust shall be 
     based upon all relevant facts and circumstances, including 
     the terms of the trust instrument

[[Page S12558]]

     and any letter of wishes or similar document, historical 
     patterns of trust distributions, and the existence of and 
     functions performed by a trust protector or any similar 
     adviser.
       ``(B) Other determinations.--For purposes of this section--
       ``(i) Constructive ownership.--If a beneficiary of a trust 
     is a corporation, partnership, trust, or estate, the 
     shareholders, partners, or beneficiaries shall be deemed to 
     be the trust beneficiaries for purposes of this section.
       ``(ii) Taxpayer return position.--A taxpayer shall clearly 
     indicate on its income tax return--

       ``(I) the methodology used to determine that taxpayer's 
     trust interest under this section, and
       ``(II) if the taxpayer knows (or has reason to know) that 
     any other beneficiary of such trust is using a different 
     methodology to determine such beneficiary's trust interest 
     under this section.

       ``(g) Termination of Deferrals, etc.--In the case of any 
     covered expatriate, notwithstanding any other provision of 
     this title--
       ``(1) any period during which recognition of income or gain 
     is deferred shall terminate on the day before the 
     expatriation date, and
       ``(2) any extension of time for payment of tax shall cease 
     to apply on the day before the expatriation date and the 
     unpaid portion of such tax shall be due and payable at the 
     time and in the manner prescribed by the Secretary.
       ``(h) Imposition of Tentative Tax.--
       ``(1) In general.--If an individual is required to include 
     any amount in gross income under subsection (a) for any 
     taxable year, there is hereby imposed, immediately before the 
     expatriation date, a tax in an amount equal to the amount of 
     tax which would be imposed if the taxable year were a short 
     taxable year ending on the expatriation date.
       ``(2) Due date.--The due date for any tax imposed by 
     paragraph (1) shall be the 90th day after the expatriation 
     date.
       ``(3) Treatment of tax.--Any tax paid under paragraph (1) 
     shall be treated as a payment of the tax imposed by this 
     chapter for the taxable year to which subsection (a) applies.
       ``(4) Deferral of tax.--The provisions of subsection (b) 
     shall apply to the tax imposed by this subsection to the 
     extent attributable to gain includible in gross income by 
     reason of this section.
       ``(i) Special Liens for Deferred Tax Amounts.--
       ``(1) Imposition of lien.--
       ``(A) In general.--If a covered expatriate makes an 
     election under subsection (a)(4) or (b) which results in the 
     deferral of any tax imposed by reason of subsection (a), the 
     deferred amount (including any interest, additional amount, 
     addition to tax, assessable penalty, and costs attributable 
     to the deferred amount) shall be a lien in favor of the 
     United States on all property of the expatriate located in 
     the United States (without regard to whether this section 
     applies to the property).
       ``(B) Deferred amount.--For purposes of this subsection, 
     the deferred amount is the amount of the increase in the 
     covered expatriate's income tax which, but for the election 
     under subsection (a)(4) or (b), would have occurred by reason 
     of this section for the taxable year including the 
     expatriation date.
       ``(2) Period of lien.--The lien imposed by this subsection 
     shall arise on the expatriation date and continue until--
       ``(A) the liability for tax by reason of this section is 
     satisfied or has become unenforceable by reason of lapse of 
     time, or
       ``(B) it is established to the satisfaction of the 
     Secretary that no further tax liability may arise by reason 
     of this section.
       ``(3) Certain rules apply.--The rules set forth in 
     paragraphs (1), (3), and (4) of section 6324A(d) shall apply 
     with respect to the lien imposed by this subsection as if it 
     were a lien imposed by section 6324A.
       ``(j) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the purposes of this section.''.
       (b) Inclusion in Income of Gifts and Bequests Received by 
     United States Citizens and Residents From Expatriates.--
     Section 102 (relating to gifts, etc. not included in gross 
     income) is amended by adding at the end the following new 
     subsection:
       ``(d) Gifts and Inheritances From Covered Expatriates.--
       ``(1) In general.--Subsection (a) shall not exclude from 
     gross income the value of any property acquired by gift, 
     bequest, devise, or inheritance from a covered expatriate 
     after the expatriation date. For purposes of this subsection, 
     any term used in this subsection which is also used in 
     section 877A shall have the same meaning as when used in 
     section 877A.
       ``(2) Exceptions for transfers otherwise subject to estate 
     or gift tax.--Paragraph (1) shall not apply to any property 
     if either--
       ``(A) the gift, bequest, devise, or inheritance is--
       ``(i) shown on a timely filed return of tax imposed by 
     chapter 12 as a taxable gift by the covered expatriate, or
       ``(ii) included in the gross estate of the covered 
     expatriate for purposes of chapter 11 and shown on a timely 
     filed return of tax imposed by chapter 11 of the estate of 
     the covered expatriate, or
       ``(B) no such return was timely filed but no such return 
     would have been required to be filed even if the covered 
     expatriate were a citizen or long-term resident of the United 
     States.''.
       (c) Definition of Termination of United States 
     Citizenship.--Section 7701(a) is amended by adding at the end 
     the following new paragraph:
       ``(48) Termination of united states citizenship.--
       ``(A) In general.--An individual shall not cease to be 
     treated as a United States citizen before the date on which 
     the individual's citizenship is treated as relinquished under 
     section 877A(e)(3).
       ``(B) Dual citizens.--Under regulations prescribed by the 
     Secretary, subparagraph (A) shall not apply to an individual 
     who became at birth a citizen of the United States and a 
     citizen of another country.''.
       (d) Ineligibility for Visa or Admission to United States.--
       (1) In general.--Section 212(a)(10)(E) of the Immigration 
     and Nationality Act (8 U.S.C. 1182(a)(10)(E)) is amended to 
     read as follows:
       ``(E) Former citizens not in compliance with expatriation 
     revenue provisions.--Any alien who is a former citizen of the 
     United States who relinquishes United States citizenship 
     (within the meaning of section 877A(e)(3) of the Internal 
     Revenue Code of 1986) and who is not in compliance with 
     section 877A of such Code (relating to expatriation).''.
       (2) Availability of information.--
       (A) In general.--Section 6103(l) (relating to disclosure of 
     returns and return information for purposes other than tax 
     administration) is amended by adding at the end the following 
     new paragraph:
       ``(19) Disclosure to deny visa or admission to certain 
     expatriates.--Upon written request of the Attorney General or 
     the Attorney General's delegate, the Secretary shall disclose 
     whether an individual is in compliance with section 877A (and 
     if not in compliance, any items of noncompliance) to officers 
     and employees of the Federal agency responsible for 
     administering section 212(a)(10)(E) of the Immigration and 
     Nationality Act solely for the purpose of, and to the extent 
     necessary in, administering such section 212(a)(10)(E).''.
       (B) Safeguards.--
       (i) Technical amendments.--Paragraph (4) of section 
     6103(p), as amended by section 202(b)(2)(B) of the Trade Act 
     of 2002 (Public Law 107-210; 116 Stat. 961), is amended by 
     striking ``or (17)'' after ``any other person described in 
     subsection (l)(16)'' each place it appears and inserting ``or 
     (18)''.
       (ii) Conforming amendments.--Section 6103(p)(4) (relating 
     to safeguards), as amended by clause (i), is amended by 
     striking ``or (18)'' after ``any other person described in 
     subsection (l)(16)'' each place it appears and inserting 
     ``(18), or (19)''.
       (3) Effective dates.--
       (A) In general.--Except as provided in subparagraph (B), 
     the amendments made by this subsection shall apply to 
     individuals who relinquish United States citizenship on or 
     after the date of the enactment of this Act.
       (B) Technical amendments.--The amendments made by paragraph 
     (2)(B)(i) shall take effect as if included in the amendments 
     made by section 202(b)(2)(B) of the Trade Act of 2002 (Public 
     Law 107-210; 116 Stat. 961).
       (e) Conforming Amendments.--
       (1) Section 877 is amended by adding at the end the 
     following new subsection:
       ``(g) Application.--This section shall not apply to an 
     expatriate (as defined in section 877A(e)) whose expatriation 
     date (as so defined) occurs on or after February 5, 2003.''.
       (2) Section 2107 is amended by adding at the end the 
     following new subsection:
       ``(f) Application.--This section shall not apply to any 
     expatriate subject to section 877A.''.
       (3) Section 2501(a)(3) is amended by adding at the end the 
     following new subparagraph:
       ``(F) Application.--This paragraph shall not apply to any 
     expatriate subject to section 877A.''.
       (4)(A) Paragraph (1) of section 6039G(d) is amended by 
     inserting ``or 877A'' after ``section 877''.
       (B) The second sentence of section 6039G(e) is amended by 
     inserting ``or who relinquishes United States citizenship 
     (within the meaning of section 877A(e)(3))'' after 
     ``877(a))''.
       (C) Section 6039G(f) is amended by inserting ``or 
     877A(e)(2)(B)'' after ``877(e)(1)''.
       (f) Clerical Amendment.--The table of sections for subpart 
     A of part II of subchapter N of chapter 1 is amended by 
     inserting after the item relating to section 877 the 
     following new item:

``Sec. 877A. Tax responsibilities of expatriation.''.
       (g) Effective Date.--
       (1) In general.--Except as provided in this subsection, the 
     amendments made by this section shall apply to expatriates 
     (within the meaning of section 877A(e) of the Internal 
     Revenue Code of 1986, as added by this section) whose 
     expatriation date (as so defined) occurs on or after February 
     5, 2003.
       (2) Gifts and bequests.--Section 102(d) of the Internal 
     Revenue Code of 1986 (as added by subsection (b)) shall apply 
     to gifts and bequests received on or after February 5, 2003, 
     from an individual or the estate of an individual whose 
     expatriation date (as so defined) occurs after such date.
       (3) Due date for tentative tax.--The due date under section 
     877A(h)(2) of the Internal Revenue Code of 1986, as added by 
     this section, shall in no event occur before the 90th day 
     after the date of the enactment of this Act.

[[Page S12559]]

     SEC. 404. EXTENSION OF CUSTOMS USER FEES.

       Section 13031(j)(3) of the Consolidated Omnibus Budget 
     Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)) is amended 
     by striking ``September 30, 2003'' and inserting ``March 31, 
     2010''.
                                 ______
                                 
  SA 1830. Mr. BINGAMAN (for himself, Mr. Lugar, Mr. Lieberman, Mr. 
Bayh, Mrs. Clinton, Mr. Durbin, Ms. Landrieu, Mrs. Lincoln, Mr. Smith, 
Mr. Reid, Mr. Corzine, Mr. Conrad, Mr. Byrd, Mr. Leahy, and Mr. 
Jeffords) proposed an amendment to the bill S. 1689, making emergency 
supplemental appropriations for Iraq and Afghanistan security and 
reconstruction for the fiscal year ending September 30, 2004, and for 
other purposes; as follows:

       At the appropriate place, insert the following:
       Sec. __. (a) Findings.--Congress makes the following 
     findings:
       (1) According to President George W. Bush, Operation Iraqi 
     Freedom was ``fought for the cause of liberty, and for the 
     peace of the world . . .'' and ``to free a nation by breaking 
     a dangerous and aggressive regime''.
       (2) The military victory in Iraq has been characterized by 
     President George W. Bush as one of the ``swiftest advances in 
     heavy arms in history''.
       (3) There are more than 130,000 Soldiers, Sailors, Airmen, 
     and Marines of the United States serving in the Iraqi Theater 
     of Operations, far from family and friends, and for an 
     unknown duration.
       (4) Since the beginning of Operation Iraqi Freedom, almost 
     300 members of the Armed Forces of the United States have 
     died in Iraq and nearly 1,500 have been wounded in action.
       (5) Congress has authorized and Presidents have issued 
     specific decorations recognizing the sacrifice and service of 
     the members of the Armed Forces of the United States in the 
     Korean War, the Vietnam conflict, and the liberation of 
     Kuwait.
       (6) Current Department of Defense guidance authorizes the 
     award of only one expeditionary medal for overseas duty in 
     Afghanistan, the Philippines, and Iraq.
       (7) The conflict in Iraq is significant enough in scope and 
     sacrifice to warrant a specific military decoration for the 
     liberation of Iraq.
       (b) Authorization of Award of Campaign Medal.--The 
     Secretary concerned may award a campaign medal of appropriate 
     design, with ribbons and appurtenances, to any person who 
     serves in any capacity with the Armed Forces in the Southwest 
     Asia region in connection with Operation Iraqi Freedom.
       (c) Name of Medal.--The campaign medal authorized by 
     subsection (b) shall be known as the ``Iraqi Liberation 
     Medal''.
       (d) Prohibition on Concurrent Award of Global War on 
     Terrorism Expeditionary Medal.--A person who is awarded the 
     campaign medal authorized by subsection (b) for service 
     described in that subsection may not also be awarded the 
     Global War on Terrorism Expeditionary Medal for that service.
       (e) Other Limitations.--The award of the campaign medal 
     authorized by subsection (b) shall be subject to such 
     limitations as the President may prescribe.
       (f) Regulations.--(1) Each Secretary concerned shall 
     prescribe regulations on the award of the campaign medal 
     authorized by subsection (b).
       (2) The regulations prescribed under paragraph (1) shall 
     not go into effect until approved by the Secretary of 
     Defense.
       (3) The Secretary of Defense shall ensure that the 
     regulations prescribed under paragraph (1) are uniform, so 
     far as practicable.
       (g) Secretary Concerned Defined.--In this section, the term 
     ``Secretary concerned'' means the following:
       (1) The Secretary of the Army with respect to matters 
     concerning members of the Army.
       (2) The Secretary of the Navy with respect to matters 
     concerning members of the Navy, Marine Corps, and Coast Guard 
     when it is operating as a service in the Navy.
       (3) The Secretary of the Air Force with respect to matters 
     concerning members of the Air Force.
       (4) The Secretary of Homeland Security with respect to 
     matters concerning members of the Coast Guard when it is not 
     operating as a service in the Navy.
                                 ______
                                 
  SA 1831. Mr. BAUCUS submitted an amendment intended to be proposed by 
him to the bill S. 1689, making emergency supplemental appropriations 
for Iraq and Afghanistan security and reconstruction for the fiscal 
year ending September 30, 2004, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the appropriate place insert the following:

     SEC. __. REVENUE PROVISIONS.

       (a) Reversal of Acceleration of Reduction in Highest Income 
     Tax Rate.--
       (1) In general.--The table contained in paragraph (2) of 
     section 1(i) (relating to reductions in rates after June 30, 
     2001) is amended to read as follows:

 
------------------------------------------------------------------------
                                    The corresponding percentages shall
                                      be substituted for the following
  ``In the case of taxable years                percentages:
 beginning during calendar year:  --------------------------------------
                                     28%      31%      36%       39.6%
------------------------------------------------------------------------
2001.............................    27.5%    30.5%    35.5%       39.1%
2002.............................    27.0%    30.0%    35.0%       38.6%
2003.............................    25.0%    28.0%    33.0%       35.0%
2004 and 2005....................    25.0%    28.0%    33.0%       37.6%
2006 and thereafter..............    25.0%    28.0%    33.0%    35.0%''.
------------------------------------------------------------------------

       (2) Effective date.--The amendment made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2003.
       (3) Application of egtrra sunset to this subsection.--The 
     amendment made by this subsection shall be subject to title 
     IX of the Economic Growth and Tax Relief Reconciliation Act 
     of 2001 to the same extent and in the same manner as the 
     provision of such Act to which such amendment relates.
       (b) Temporary Suspension of Reduction in Capital Gains 
     Rates for Individuals.--
       (1) In general.--Subsection (d) of section 301 of the Jobs 
     and Growth Tax Relief Reconciliation Act of 2003 is amended 
     to read as follows:
       ``(d) Effective Dates.--
       ``(1) In general.--Except as otherwise provided by this 
     subsection, the amendments made by this section shall apply 
     to taxable years--
       ``(A) ending on or after May 6, 2003, and beginning before 
     January 1, 2004, and
       ``(B) beginning after December 31, 2006.
       ``(2) Withholding.--The amendment made by subsection 
     (a)(2)(C) shall apply to amounts paid after the date of the 
     enactment of this Act, but only with respect to taxable years 
     described in paragraph (1).
       ``(3) Small business stock.--The amendments made by 
     subsection (b)(3) shall apply to dispositions--
       ``(A) on or after May 6, 2003, and before January 1, 2004, 
     and
       ``(B) after December 31, 2006.''.
       (2) Application of jgtrra sunset to this subsection.--The 
     amendment made by this subsection shall be subject to section 
     303 of the Jobs and Growth Tax Relief Reconciliation Act of 
     2003 to the same extent and in the same manner as the 
     provision of such Act to which such amendment relates.
       (c) Temporary Suspension of Taxation of Dividends at 
     Capital Gains Rates.--
       (1) In general.--Subsection (f) of section 302 of the Jobs 
     and Growth Tax Relief Reconciliation Act of 2003 is amended 
     to read as follows:
       ``(f) Effective Date.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to taxable 
     years--
       ``(A) beginning after December 31, 2002, and before January 
     1, 2004, and
       ``(B) beginning after December 31, 2006.
       ``(2) Regulated investment companies and real estate 
     investment trusts.--In the case of a regulated investment 
     company or a real estate investment trust, the amendments 
     made by this section shall apply to taxable years described 
     is paragraph (1); except that dividends received by such a 
     company or trust--
       ``(A) before January 1, 2003, and
       ``(B) after December 31, 2003, and before January 1, 2007,

     shall not be treated as qualified dividend income (as defined 
     in section 1(h)(11)(B) of the Internal Revenue Code of 1986, 
     as added by this Act).''.
       (2) Application of jgtrra sunset to this subsection.--The 
     amendment made by this subsection shall be subject to section 
     303 of the Jobs and Growth Tax Relief Reconciliation Act of 
     2003 to the same extent and in the same manner as the 
     provision of such Act to which such amendment relates.
                                 ______
                                 
  SA 1832. Mr. FEINGOLD submitted an amendment intended to be proposed 
by him to the bill S. 1689, making emergency supplemental 
appropriations for Iraq and Afghanistan security and reconstruction for 
the fiscal year ending September 30, 2004, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 35, line 14, strike ``available,'' and insert 
     ``available in both English and Arabic,''.
                                 ______
                                 
  SA 1833. Mr. LEAHY submitted an amendment intended to be proposed by 
him to the bill S. 1689, making emergency supplemental appropriations 
for Iraq and Afghanistan security and reconstruction for the fiscal 
year ending September 30, 2004, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the appropriate place insert:
       Sec.   . None of the funds made available in this or any 
     other Act for fiscal year 2004 may be used for any defense or 
     reconstruction activities in Iraq or Aghanistan coordinated 
     by any officer of the United States Government whose office 
     is not subject to appointment by the President by and with 
     the advice and consent of the Senate.
                                 ______
                                 
  SA 1834. Mr. REED (for himself, Mr. Hagel, and Mr. Levin) submitted 
an amendment intended to be proposed by him to the bill S. 1689, making 
emergency supplemental appropriations for Iraq and Afghanistan security 
and reconstruction for the fiscal year ending September 30, 2004, and 
for other purposes; as follows:

       On page 22, between lines 12 and 13, insert the following:
       Sec. 316. (a) In addition to the strengths authorized by 
     law for personnel of the Army as of September 30, 2004, 
     pursuant to paragraphs (1) and (2) of section 115(a) of title 
     10,

[[Page S12560]]

     United States Code, the Army is hereby authorized an 
     additional strength of 10,000 personnel as of such date, 
     which the Secretary of the Army may allocate as the Secretary 
     determines appropriate among the personnel strengths required 
     by such section to be authorized annually under subparagraphs 
     (A) and (B) of paragraph (1) of such section and paragraph 
     (2) of such section.
       (b) The additional personnel authorized under subsection 
     (a) shall be trained, incorporated into an appropriate force 
     structure, and used to perform constabulary duty in such 
     specialties as military police, light infantry, civil 
     affairs, and special forces, and in any other military 
     occupational specialty that is appropriate for constabulary 
     duty.
       (c) Of the amount appropriated under chapter 1 of this 
     title for the Iraq Freedom Fund, $409,000,000 shall be 
     available for necessary expenses for the additional personnel 
     authorized under subsection (a).
                                 ______
                                 
  SA 1835. Mr. REID (for himself and Mrs. Lincoln) proposed an 
amendment to the bill S. 1689, making emergency supplemental 
appropriations for Iraq and Afghanistan security and reconstruction for 
the fiscal year ending September 30, 2004, and for other purposes; as 
follows:

       At the end of title I, add the following:
       Sec. 316. (a) Restoration of Full Retired Pay Benefits.--
     Section 1414 of title 10, United States Code, is amended to 
     read as follows:

     ``Sec. 1414. Members eligible for retired pay who have 
       service-connected disabilities: payment of retired pay and 
       veterans' disability compensation

       ``(a) Payment of Both Retired Pay and Compensation.--Except 
     as provided in subsection (b), a member or former member of 
     the uniformed services who is entitled to retired pay (other 
     than as specified in subsection (c)) and who is also entitled 
     to veterans' disability compensation is entitled to be paid 
     both without regard to sections 5304 and 5305 of title 38.
       ``(b) Special Rule for Chapter 61 Career Retirees.--The 
     retired pay of a member retired under chapter 61 of this 
     title with 20 years or more of service otherwise creditable 
     under section 1405 of this title at the time of the member's 
     retirement is subject to reduction under sections 5304 and 
     5305 of title 38, but only to the extent that the amount of 
     the member's retired pay under chapter 61 of this title 
     exceeds the amount of retired pay to which the member would 
     have been entitled under any other provision of law based 
     upon the member's service in the uniformed services if the 
     member had not been retired under chapter 61 of this title.
       ``(c) Exception.--Subsection (a) does not apply to a member 
     retired under chapter 61 of this title with less than 20 
     years of service otherwise creditable under section 1405 of 
     this title at the time of the member's retirement.
       ``(d) Definitions.--In this section:
       ``(1) The term `retired pay' includes retainer pay, 
     emergency officers' retirement pay, and naval pension.
       ``(2) The term `veterans' disability compensation' has the 
     meaning given the term `compensation' in section 101(13) of 
     title 38.''.
       (b) Repeal of Special Compensation Programs.--Sections 1413 
     and 1413a of such title are repealed.
       (c) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by striking the items 
     relating to sections 1413, 1413a, and 1414 and inserting the 
     following:

``1414. Members eligible for retired pay who have service-connected 
              disabilities: payment of retired pay and veterans' 
              disability compensation.''.

       (d) Effective Date; Prohibition on Retroactive Benefits.--
       (1) In general.--The amendments made by this section shall 
     take effect on the first day of the first month that begins 
     after the date of the enactment of this Act.
       (2) Retroactive benefits.--No benefits may be paid to any 
     person by reason of section 1414 of title 10, United States 
     Code, as amended by subsection (a), for any period before the 
     effective date under paragraph (1).
                                 ______
                                 
  SA 1836. Mr. REID proposed an amendment to the bill S. 1689, making 
emergency supplemental appropriations for Iraq and Afghanistan security 
and reconstruction for the fiscal year ending September 30, 2004, and 
for other purposes; as follows:

       On page 22, between lines 12 and 13, insert the following 
     new section:
       Sec. 316. (a) Congress makes the following findings:
       (1) During Operation Desert Shield and Operation Desert 
     Storm (in this section, collectively referred to as the 
     ``First Gulf War''), the regime of Saddam Hussein committed 
     grave human rights abuses and acts of terrorism against the 
     people of Iraq and citizens of the United States.
       (2) United States citizens who were taken prisoner by the 
     regime of Saddam Hussein during the First Gulf War were 
     brutally tortured and forced to endure severe physical trauma 
     and emotional abuse.
       (3) The regime of Saddam Hussein used civilian citizens of 
     the United States who were working in the Persian Gulf region 
     before and during the First Gulf War as so-called human 
     shields, threatening the personal safety and emotional well-
     being of such civilians.
       (4) Congress has recognized and authorized the right of 
     United States citizens, including prisoners of war, to hold 
     terrorist states, such as Iraq during the regime of Saddam 
     Hussein, liable for injuries caused by such states.
       (5) The United States district courts are authorized to 
     adjudicate cases brought by individuals injured by terrorist 
     states.
       (b) It is the sense of Congress that--
       (1) notwithstanding section 1503 of the Emergency Wartime 
     Supplemental Appropriations Act, 2003 (Public Law 108-11; 117 
     Stat. 579) and any other provision of law, a citizen of the 
     United States who was a prisoner of war or who was used by 
     the regime of Saddam Hussein and by Iraq as a so-called human 
     shield during the First Gulf War should have the opportunity 
     to have any claim for damages caused by the regime of Saddam 
     Hussein and by Iraq incurred by such citizen fully 
     adjudicated in the appropriate United States district court;
       (2) any judgment for such damages awarded to such citizen, 
     or the family of such citizen, should be fully enforced; and
       (3) the Attorney General should enter into negotiations 
     with each such citizen, or the family of each such citizen, 
     to develop a fair and reasonable method of providing 
     compensation for the damages each such citizen incurred, 
     including using assets of the regime of Saddam Hussein held 
     by the Government of the United States or any other 
     appropriate sources to provide such compensation.
                                 ______
                                 
  SA 1837. Mr. DURBIN (for himself, Ms. Mikulski, and Mr. Corzine) 
proposed an amendment the bill S. 1689, making emergency supplemental 
appropriations for Iraq and Afghanistan security and reconstruction for 
the fiscal year ending September 30, 2004, and for other purposes; as 
follows:

       At the appropriate place, insert the following:
       Sec. __. (a) Short Title.--This section may be cited as the 
     ``Reservists Pay Security Act of 2003''.
       (b) Nonreduction in pay While Federal Employee Is 
     Performing Active Service In the Uniformed Services or 
     National Guard.--
       (1) In general.--Subchapter IV of chapter 55 of title 5, 
     United States Code, is amended by adding at the end the 
     following:

     ``Sec. 5538. Nonreduction in pay while serving in the 
       uniformed services or National Guard

       ``(a) An employee who is absent from a position of 
     employment with the Federal Government in order to perform 
     active duty in the uniformed services pursuant to a call or 
     order to active duty under a provision of law referred to in 
     section 101(a)(13)(B) of title 10 shall be entitled, while 
     serving on active duty, to receive, for each pay period 
     described in subsection (b), an amount equal to the amount by 
     which--
       ``(1) the amount of basic pay which would otherwise have 
     been payable to such employee for such pay period if such 
     employee's civilian employment with the Government had not 
     been interrupted by that service, exceeds (if at all)
       ``(2) the amount of pay and allowances which (as determined 
     under subsection (d))--
       ``(A) is payable to such employee for that service; and
       ``(B) is allocable to such pay period.
       ``(b)(1) Amounts under this section shall be payable with 
     respect to each pay period (which would otherwise apply if 
     the employee's civilian employment had not been 
     interrupted)--
       ``(A) during which such employee is entitled to 
     reemployment rights under chapter 43 of title 38 with respect 
     to the position from which such employee is absent (as 
     referred to in subsection (a)); and
       ``(B) for which such employee does not otherwise receive 
     basic pay (including by taking any annual, military, or other 
     paid leave) to which such employee is entitled by virtue of 
     such employee's civilian employment with the Government.
       ``(2) For purposes of this section, the period during which 
     an employee is entitled to reemployment rights under chapter 
     43 of title 38--
       ``(A) shall be determined disregarding the provisions of 
     section 4312(d) of title 38; and
       ``(B) shall include any period of time specified in section 
     4312(e) of title 38 within which an employee may report or 
     apply for employment or reemployment following completion of 
     the service on active duty to which called or ordered as 
     described in subsection (a).
       ``(c) Any amount payable under this section to an employee 
     shall be paid--
       ``(1) by such employee's employing agency;
       ``(2) from the appropriation or fund which would be used to 
     pay the employee if such employee were in a pay status; and
       ``(3) to the extent practicable, at the same time and in 
     the same manner as would basic pay if such employee's 
     civilian employment had not been interrupted.
       ``(d) The Office of Personnel Management shall, in 
     consultation with Secretary of Defense, prescribe any 
     regulations necessary to carry out the preceding provisions 
     of this section.
       ``(e)(1) The head of each agency referred to in section 
     2302(a)(2)(C)(ii) shall, in consultation with the Office, 
     prescribe procedures to

[[Page S12561]]

     ensure that the rights under this section apply to the 
     employees of such agency.
       ``(2) The Administrator of the Federal Aviation 
     Administration shall, in consultation with the Office, 
     prescribe procedures to ensure that the rights under this 
     section apply to the employees of that agency.
       ``(f) In this section--
       ``(1) the terms `employee', `Federal Government', and 
     `uniformed services' have the same respective meanings as 
     given them in section 4303 of title 38;
       ``(2) the term `employing agency', as used with respect to 
     an employee entitled to any payments under this section, 
     means the agency or other entity of the Government (including 
     an agency referred to in section 2302(a)(2)(C)(ii)) with 
     respect to which such employee has reemployment rights under 
     chapter 43 of title 38; and
       ``(3) the term `basic pay' includes any amount payable 
     under section 5304.''.
       (2) Technical and conforming amendment.--The table of 
     sections for chapter 55 of title 5, United States Code, is 
     amended by inserting after the item relating to section 5537 
     the following:

``5538. Nonreduction in pay while serving in the uniformed services or 
              National Guard.''.

       (3) Effective period.--The amendments made by this section 
     shall apply with respect to pay periods (as described in 
     section 5538(b) of title 5, United States Code, as amended by 
     this section) beginning on or after the date of enactment of 
     this section and ending September 30, 2004.

                          ____________________