[Congressional Record Volume 151, Number 100 (Thursday, July 21, 2005)]
[Senate]
[Pages S8667-S8683]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
______
By Mr. THOMAS (for himself and Mrs. Lincoln):
S. 1441. A bill to amend the Internal Revenue Code of 1986 to include
wireless telecommunications equipment in the definition of qualified
technological equipment for purposes of determining the depreciation
treatment of such equipment; to the Committee on Finance.
Mr. THOMAS. Mr. President, today I rise to introduce a bill that
would clarify the class life of cell site equipment used by wireless
telecommunications companies.
Wireless telecommunications, like many other high-tech industries,
uses computer-based technology to facilitate the digitization of voice,
video and data services over its networks. The wireless industry was in
its infancy in 1986 when the Internal Revenue Code's rules regarding
depreciation were last revised, so the sophisticated equipment used
today was not even contemplated. For the past 20 years, the Internal
Revenue Service--and taxpayers--have had to try to shoehorn modern
equipment into outdated wireline telephony definitions in order to
determine the appropriate depreciation period. Even the Treasury
Department, in its July 2000 ``Report to the Congress on Depreciation
Recovery Periods and Methods,'' admits that this is inappropriate.
The result of this methodology is that the IRS has taken the position
that wireless cell site equipment should be depreciated similarly to
wooden telephone poles and wires rather than other, computerized
equipment that it more closely resembles. Consequently, this equipment
is depreciated over 20 years rather than 5. In other words, the
misclassification significantly increases the cost of capital
investment in the Nation's wireless network.
Given the rapid technological change and advances in the wireless
industry, this bill would classify wireless telecommunications
equipment as ``qualified technological equipment.'' This is the proper
classification because the major components of wireless cell sites are,
in fact, computers or peripheral equipment controlled by computers.
Consumer demand for wireless services grew almost 700 percent over
the last decade, and rapid growth in this area continues. The industry
also makes significant contributions to the economy directly employing
226,340 workers and making hundreds of billions of dollars in capital
investments. Clarifying the depreciation treatment of cell site
equipment means even greater wireless investment, increased wireless
employment, and improved benefits to America's wireless consumers.
Wireless technology has brought tremendous advances to rural America,
and this bill would ensure that rural consumers continue to have timely
access to the latest technology available. I thank my colleague from
Arkansas, Mrs. Lincoln, for joining me in recognizing the problem and
introducing this legislation.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 1441
Be it enacted by the Senate and House of Representatives
of the United States of America in Congress assembled,
SECTION 1. WIRELESS TELECOMMUNICATIONS EQUIPMENT.
(a) In General.--Subparagraph (A) of section 168(i)(2) of
the Internal Revenue Code of 1986 (defining qualified
technological equipment) is amended by striking ``and'' at
the end of clause (ii), by striking the period at the end of
clause (iii) and inserting ``, and'', and by inserting after
clause (iii) the following new clause:
``(iv) any wireless telecommunications equipment.''.
(b) Wireless Telecommunications Equipment.--Section
168(i)(2) of the Internal Revenue Code of 1986 is amended by
inserting after subparagraph (C) the following new
subparagraph:
``(D) Wireless telecommunications equipment.--For purposes
of this paragraph, the term `wireless telecommunications
equipment' means all equipment used in the transmission,
reception, coordination, or switching of wireless
telecommunications service, other than cell towers,
buildings, and T-1 lines or other cabling connecting cell
sites to mobile switching centers. For this purpose,
`wireless telecommunications service' includes any commercial
mobile radio service as defined in title 47 of the Code of
Federal Regulations.''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service on or after the
date of the enactment of this Act.
______
By Mrs. CLINTON (for herself, Mr. Chafee, and Mr. Reid):
S. 1442. A bill to amend the Public Health Service Act to establish a
Coordinated Environmental Health Network, and for other purposes; to
the Committee on Health, Education, Labor, and Pensions.
Mrs. CLINTON. Mr. President, I rise today to introduce, with my
colleagues Senators Chafee and Reid, the Coordinated Environmental
Health Tracking Act of 2005.
There is a saying--``what you don't know can't hurt you.'' But when
it comes to chronic disease, what we don't know can hurt all of us. The
bill we are introducing today will help us solve the mysteries behind
the high rates of chronic diseases such as cancer, autism, and
Alzheimer's that afflict so many American communities.
Once we are able to track diseases, and detect links to environmental
or other causes, we will be able to prevent public health crises before
they occur.
The environmental links to the onset of diseases are not well
understood. They are hidden health hazards that manifest themselves in
chronic diseases. We are only beginning to understand what these
hazards are and what is the scope of their effects on our health.
We need more specifics on these environmental factors. For example,
we need to know what is the cumulative effect of extended exposure to a
variety of environmental factors over time.
One way to get those specifics is to track the outbreak of chronic
diseases, just like we track the outbreaks of infectious diseases.
[[Page S8668]]
This legislation would establish a comprehensive national tracking
system for chronic diseases, so that we can identify, address and
prevent them.
It would help States to participate in this national tracking system-
by providing them with Environmental Health Tracking Network Grants,
assisting them in developing the infrastructure necessary to
participate in this network.
It would also create a chronic disease response force, bringing the
expertise of environmental, scientific and health experts to areas with
potential clusters of chronic diseases, like Long Island's breast
cancer cluster.
It will allow us to monitor our environmental health by requiring an
annual report of the results of the Nationwide Health Tracking Network,
helping to educate and arm us with valuable information in the fight
against chronic diseases.
Finally, it will help us build the public health expertise we need to
address these issues in the future, by providing funding for the
establishment of at least seven biomonitoring labs and setting up
epidemiology fellowships and centers of excellence for environmental
health.
I believe that this legislation will help obtain and act on the best
possible evidence to improve our Nation's health and to begin to tackle
the extraordinary human and economic costs that chronic disease imposes
on our country.
______
By Ms. COLLINS (for herself and Mr. Lieberman):
S. 1443. A bill to permit athletes to receive nonimmigrant alien
status under certain conditions, and for other purposes; to the
Committee on the Judiciary.
Ms. COLLINS. Mr. President, I rise today to once again introduce
legislation that will address the challenges facing many promising,
talented young athletes from other countries who wish to play for
sports teams in the United States. Due to the shortage of H-2B
nonimmigrant visas for temporary or seasonal nonagricultural foreign
workers both this year and last, many American teams who rely on these
visas to recruit new talent from abroad have been unable to bring some
of their most talented prospects to the United States. This bill would
provide a commonsense solution to this problem.
Across the United States, the H-2B visa shortage has been a
significant concern to many in a wide variety of industries, including
hospitality, forest products, fisheries, and landscaping, to name a
few. While we recently were successful in crafting a temporary, 2-year
fix for the H-2B shortage, there is more still to be done. We must
continue to seek permanent solutions to this problem, and to find
practical ways to reduce the demand on this visa category. While there
are a number of factors contributing to this high demand, among these
is the extremely diverse, ``catch-all'' nature of this visa
classification.
What many people do not know is that, in addition to loggers, hotel
and restaurant employees, fisheries workers, landscapers, and many
other types of seasonal workers, the H-2B visa category is also used by
many talented, highly competitive foreign athletes. Specifically, minor
league athletes--unlike their counterparts at Major League franchises--
are lumped into this same oversubscribed visa category, despite the
obvious differences in the nature of the work they perform. The recent
H-2B visa shortage has therefore meant that hundreds of promising
athletes have been unable to come to the United States to play for
minor league and amateur sports teams across the Nation. Not only have
many teams been unable to bring some of their most talented prospects
to the United States, but this visa shortage has also compromised a
traditional source of talent for Major League sports teams. In
addition, some very talented ice skaters who have earned roles in a
number of popular theatrical productions, such as Disney on Ice, have
faced difficulties in coming to the United States.
In my home State of Maine, for example, the Lewiston MAINEiacs, a
Canadian junior hockey league team, faced tremendous difficulties last
year obtaining the H-2B visas necessary for the majority of its players
to remain in the United States to play in the team's first home games
in September. These young athletes are among Canada's most talented
junior players, but the shortage of H-2B visas threatened their chances
of improve their skills with the MAINEiacs and, possibly, graduate to a
career in professional hockey. This year, due to uncertainty about the
availability of H-2B visas at the end of the fiscal year, the team has
had to schedule a later season home opener. It must also attempt to
schedule make-up games for the home games that the team would normally
play in September. This creates a hardship on the team and its venue,
and could mean fewer home games and a loss of revenue for businesses in
the surrounding area. I have received a letter from the MAINEiacs,
expressing the teams's support for this legislation. I ask unanimous
consent that this letter be printed in the Record.
The Portland Sea Dogs, a Double-A level baseball team affiliated with
the Boston Red Sox, is another of the many teams that relies on H-2B
visas to bring some of its most skilled players to the United States.
Thousands of fans come out each year to see this team, and others like
it across the country, play one of America's favorite sports. Due to
the shortage of H-2B visas, however, Major League Baseball reports that
more than 350 talented young, foreign baseball players were prevented
from coming to the U.S. last year and early this year to play for Minor
League teams, a traditional proving ground for athletes hoping to make
it to the Major Leagues. The experience gained in the Minor Leagues is
crucial to the development of the best Major League players.
The inclusion of these athletes in the H-2B visa category seems
particularly unusual when you consider that Major League athletes are
permitted to use an entirely different nonimmigrant visa category: the
P-1 visa. This visa is used by athletes who are deemed by the U.S.
Citizenship and Immigration Services, CIS, to perform at an
``internationally recognized level of performance.'' Arguably, any
foreign athlete whose achievements have earned him a contract with an
American team would meet this definition. However, CIS has interpreted
this category to exclude minor and amateur league athletes. Instead,
the P-1 visa is typically reserved for only those athletes who have
already been promoted to Major League sports. Unfortunately, this
creates something of a catch-22: if an H-2B visa shortage means that
promising athletes are unable to hone their skills, and to prove
themselves, in the Minor Leagues, then they are far less likely to ever
earn a Major League contract.
A simple solution would be to expand the P-1 visa category to include
minor league athletes and certain amateur-level athletes who have
demonstrated a significant likelihood of graduating to the major
leagues. I have received a letter from officials from Major League
Baseball, which continues to strongly support the expansion of the P-1
visa category to include professional Minor League baseball players. I
would ask unanimous consent that this letter be printed in the Record.
As the League points out, by making P-1 visas available to this group
of athletes, teams would be able to make player development decisions
based on the talent of its players, without being constrained by visa
quotas. The P-1 category, the League argues, is appropriate for Minor
League players because these are the players that the Major League
Clubs have selected as some of the best baseball prospects in the
world.
There is no question that Americans are passionate about sports. We
have high expectations for our teams, and demand only the best from our
athletes. By expanding the P-1 visa category, we will make it possible
for athletes to be selected based on talent and skill, rather than
nationality. In addition, we would reduce some pressure on the H-2B
visa category so that more of those visas can be used where they are
really needed.
There being no objection, the letters were ordered to be printed in
the Record, as follows:
July 11, 2005.
Re legislation for nonimmigrant alien status for certain
athletes.
Hon. Susan M. Collins,
U.S. Senator from Maine, Russell Senate Office Building,
Washington, DC.
Dear Senator Collins: I wish to express the Lewiston
MAINEiacs Hockey Club's support for your efforts with regard
to amending the P-1 work visa to enable all of our
[[Page S8669]]
non U.S. players to work in the United States.
The Lewiston MAINEiacs Hockey Club is the sole U.S. based
franchise in the 18-member Quebec Major Junior Hockey League
(QMJHL). The QMJHL together with the Ontario Hockey League
(OHL) and the Western Hockey League (WHL) make up the
Canadian Hockey League which comprises a total of 58 teams.
Of these 58 franchises, 9 are located in the United Stats
(OHL-3,WHL-5, QMJHl-1).
The CHL is the largest developer of talent for the National
Hockey League (NHL). More than 70% of all players, coaches
and general managers who have played in the NHL are graduates
of the Canadian Hockey League.
The majority of players in the Canadian Hockey League are
Canadian, although each team is permitted to have a maximum
of 2 Europeans on their rosters. These is also an increasing
number of elite U.S. born players now playing in the league.
The MAINEiacs sophomore season in 2004-fnl2-005 was a giant
success, growing the fan base to over 93,000 fans in the
regular season (2662 per game average). The team easily
advanced through the first round of the playoffs before
losing to the Rimouski Oceanic in the second round. Rimouski
subsequently went on to win the league title. The Lewiston
MAINEiacs also had two of their players drafted into the
National Hockey League in June 2004 with Alexandre Picard
being selected in the first round, 8th overall by the
Columbus Blue Jackets and Jonathan Paiememt being selected by
the New York Rangers in the 8th round. A total of 27 players
in the QMJHL were selected at the 2004 NHL Entry Draft.
In January of 2004, the City of Lewiston purchased the
Colisee in order to complete the first round of renovations
to the facility which was in excess of two million dollars.
The Colisee has undergone a second phase of renovations in
excess of 1.8 million dollars that entails a three-story
addition to the front of the building providing for new
offices, box office, proshop, food and beverage concessions
and a new private VIP suite that can accommodate more than
130 fans per game. The City of Lewiston recently contracted
the day-to-day management of the Colisee to Global Spectrum,
a subsidiary of Comcast-Spectacor, one of the largest and
most successful facility management companies in North
America.
The results of the current visa laws have forced all U.S.
based franchises in the CHL to delay the commencement of
their regular season until or after October 1 of each year
due to the restrictions of the H-2B temporary work visa
regulations. This has caused significant hardship on teams,
their facilities and the 3 leagues. U.S. based franchises are
forced to try and make-up games that would normally be
scheduled in the month of the September later in the season,
putting both the teams and their fans at disadvantage before
the season even commences.
Under your leadership, should congressional legislation
make available P-1 visas to Major Junior players of the CHL,
the success of all 9 U.S. based CHL franchises would be
greatly enhanced by ensuring that all 58 teams have an equal
chance at attracting and developing the best available
talent.
It is the hope of the Lewiston MAINEiacs that your
colleagues in the Senate follow your leadership and endorse
your recommendations for the expanded P-1 work visa to ensure
the viability and success of not only our franchise--but the
8 other U.S. based clubs in the Canadian Hockey League.
Sincerely,
Matt McKnight,
Vice President & Governor.
____
Office of the Commissioner,
Major League Baseball,
New York, NY, May 6, 2005.
Re legislation for nonimmigrant alien status for certain
athletes.
Hon. Susan M. Collins,
U.S. Senator from Maine, Russell Senate Office Building,
Washington, DC.
Dear Senator Collins: I write to express Major League
Baseball's support for your efforts on behalf of Minor League
professional baseball players. We understand that you are
sponsoring legislation that will enable Minor League players
to obtain P-1 work visas to perform in the United States.
Currently, foreign players under Minor League contracts are
required to obtain H-2B (temporary worker) work visas to
perform in the United States, forcing the Major League Clubs
to compete with employers of various unskilled workers for a
limited number of such visas that are issued. The United
States Citizenship and Immigration Services stopped accepting
H-2B visa applications in early January this year (and in
March, in 2004), citing the nationwide cap in the number of
such visas that can be issued. That action prevented more
than 350 young baseball players from performing in the Minor
Leagues in the United States in 2004 and 2005. Moreover,
Major League Clubs were forced to make premature player
promotion decisions this past off-season, in a race to apply
for H-2B visas before the cap was reached.
Minor League experience is crucial in developing the best
possible Major League players. Unlike other professional
athletes, baseball players almost invariably cannot go
directly from high school or college to the Major Leagues.
Almost all need substantial experience in the Minor Leagues
to develop their talents and skills to Major League quality.
To get that necessary experience, young players are signed by
Major League Clubs and assigned to play for Minor League
affiliates throughout the United States, such as the Eastern
League's Portland Sea Dogs in your state.
Major League Clubs sign many players from the Dominican
Republic and Venezuela and assign them at first to affiliates
in those countries, then seek to promote them to affiliates
in the United States as players' skills progress. Typically,
a Club would seek to promote 3-5 players per season to Minor
League affiliates in the United States, but the visa
restrictions will make those promotions impossible this
season, as they did last year as well. The Major League Clubs
were able to use only approximately 80% of the H-2B visas the
Department of Labor allowed them for the 2004 and 2005
seasons, because current laws prevent them from making
decisions in the late spring and throughout the summer to
promote foreign prospects to United States affiliates. My
staff has learned that at least several Clubs shied away from
drafting foreign (mostly Canadian) players whom they
otherwise might have selected in the annual First-Year Player
Draft in June 2004 and will do so again this year, because
those Clubs know there is no opportunity for those players to
begin their professional careers in the United States the
summer after their selection. For the Canadian players who
were drafted in June 2004, signings declined 80% from 2003.
These results of the current visa laws have deprived Minor
League fans across America from seeing the best young players
possible perform for affiliates of the Major League Baseball
Clubs and have affected the quality and attractiveness of
those affiliates.
Under your leadership, congressional legislation could, by
sensibly making available P-1 visas to professional Minor
League athletes, ensure that the best baseball prospects from
around the world will get the opportunity to develop here in
the United States, without the constraint that the H-2B visa
cap imposes. The National Association of Professional
Baseball Leagues, Inc., also known as Minor League Baseball,
shares our support of your legislation. The Major League
Baseball Players Association also supports allowing the best
young players to develop here in the United States.
Major League Baseball hopes that your Senate colleagues
will follow your leadership and pursue a legislative remedy
to a problem that is threatening to weaken Baseball's Minor
League system.
Sincerely,
Robert A. DuPuy,
President and Chief Operating Officer.
______
By Mr. BAUCUS (for himself and Mr. Coleman):
S. 1444. A bill to amend the Trade Act of 1974 to provide for
alternative means of certifying workers for adjustment assistance on an
industry-wide basis; to the Committee on Finance.
Mr. BAUCUS. Mr. President, I rise today to introduce the Trade
Adjustment Assistance for Industries Act.
I have long been a champion for our Trade Adjustment Assistance
program, what we call ``TAA.''
For more than 40 years, TAA has been providing retraining, income
support, and other benefits to workers who lose their jobs due to
trade. The program has a critical mission: to give trade-impacted
workers the skills they need to find new jobs and prosper in growing
sectors of the economy.
Maintaining a well-trained workforce is key to our Nation's long-term
competitiveness and economic health. And helping those few who lose out
from our trade policy choices is key to maintaining public support for
trade liberalization.
In the Trade Act of 2002, I spearheaded the most comprehensive
expansion and overhaul of the TAA program since 1974. We expanded the
kinds of workers who are eligible for TAA benefits. We extended the
training benefit to make it more effective and enhanced funding for
training. We added new benefits like wage insurance and the health
coverage tax credit. We also streamlined the application process to get
workers enrolled and retraining sooner.
TAA is a lifeline for those who enter the program. Participating
workers in Montana tell me that TAA has made it possible for them to
make a new start. It gives them hope that they can do something more
than merely survive a plant closure.
One of the industries in Montana that has had all too much experience
[[Page S8670]]
with the TAA program is softwood lumber. Our softwood lumber industry
has been battered for years by imports of dumped and subsidized lumber
from Canada. Over time, and despite decades of litigation, these unfair
trading practices have taken their toll.
Since 1999, workers from at least 24 Montana lumber mills have
applied for TAA certification. An additional 11 petitions were filed
under the now-repealed NAFTA-TAA program.
What surprises me is not that so many Montana lumber workers have
applied for TAA--but the inconsistent treatment of their petitions. Of
the 24 Montana lumber companies that petitioned for TAA, 16 were
approved and 8 were denied. Under the NAFTA-TAA program, 6 petitions
were approved, and 5 were denied.
These results do not make sense. These mills are all competing in the
same market. They are all competing against dumped and subsidized
imports from Canada that drive down prices until U.S. producers cannot
survive. The International Trade Commission found that Canadian imports
injure or threaten injury to the entire domestic softwood lumber
industry. And yet, somewhere between a third and a half of Montana
workers laid off in the industry were left to fend for themselves,
while the others had the chance to participate in TAA.
So why are some workers getting TAA and others being turned down? The
answer lies in the way the Department of Labor reviews petitions. Under
current law, petitions have to be filed and reviewed on a plant-by-
plant basis and in a total vacuum.
In effect, the Labor Department puts on blinders. It does not
consider whether the International Trade Commission has found injury to
the industry from imports. It does not ask whether imports are leading
to job losses nationwide. It does not examine whether entire
occupational categories are being offshored.
Instead, it just asks an individual plant whether it or its customers
are buying more imports. If that one plant submits the wrong
information, or its customers deny buying imports, its workers lose
out--while similar workers up the road get the benefits they deserve.
The plight of softwood lumber illustrates why, in some cases, plant-
by-plant certification is not the best policy. And lumber workers are
not alone. A similarly checkered record of certifications and denials
affects other industries, like textiles and small electronics. Simply
put, there are some industries where the trade-related displacements
are clearly national in scope.
The industries are easy to identify. They experience multiple plant
closures covering multiple states in a relatively short period. They
are often industries seeking or receiving relief under trade remedy
laws.
In these cases, it makes no sense to consider petitions one plant
closure at a time. That creates the risk of inconsistent results for
similarly situated workers. And it makes the Department of Labor
investigate the same situation over and over again--even when the
International Trade Commission, or another Federal agency, has already
made a thorough injury investigation.
What would make more sense is a way to certify workers on an
industry-wide basis or on the basis of occupational classification in
cases where the trade-related layoffs are national in scope. That is
what this legislation does.
I should note that, in one rare circumstance, the President already
has the authority to certify workers for TAA on an industry-wide and
nationwide basis. When the President grants a remedy in a global
safeguard case--what we call section 201--he has the option of
certifying all workers in the affected industry for TAA.
To my knowledge, this option has been used only once, by President
Reagan, in a case involving the footwear industry. In that case,
workers laid off from individual footwear plants did not need to
petition the Department of Labor for a determination that their job
losses were import-related. All each worker had to do was go to a
designated office in his State and prove that he lost a job in the
footwear industry within the applicable time period.
Normally, there are two steps needed to qualify for TAA under current
law. First, the Department of Labor has to certify that a particular
layoff is trade-related. That certification covers all the workers laid
off at a single plant. Second, each individual worker affected by that
layoff has to prove that he or she satisfies a list of criteria to
qualify for benefits, such as 2 years' employment at the firm and
eligibility for unemployment insurance. In the footwear case, workers
were spared the first, group eligibility step and moved right to the
second step.
To me, this model makes a lot of sense. If you believe in the purpose
of TAA, it makes sense to make it as easy as possible for qualifying
workers to access benefits.
This bill achieves that goal in two ways.
First, it makes industry-wide TAA certification automatic in cases
where the President, the International Trade Commission, or another
qualified Federal agency has already determined that imports are having
an injurious effect. If workers lose their jobs in an industry covered
by a global or bilateral safeguard or an antidumping or countervailing
duty order, within a set period of time, they do not need to file a
petition for TAA. Instead, they can proceed directly to the second step
of demonstrating their individual eligibility and enrolling through the
one-stop centers in their states.
Second, the bill permits, but does not require, the Secretary of
Labor to make her eligibility determination on an industry-wide or
occupation-wide basis in other circumstances that suggest a plant-by-
plant approach is not appropriate. Such circumstances would include
cases where the Secretary has received three or more petitions from
workers at different plants in the same industry within a 6 month
period. It would also include cases where the Senate Finance Committee
or the House Ways and Means Committee passes a resolution requesting an
industry-wide investigation. In these cases, the Secretary may certify
workers in an entire industry only if she determines that the statutory
eligibility criteria are satisfied on an industry-wide basis.
Now that I have described what this bill does, I think it is
important to emphasize some things that it does not do:
It does not change the eligibility criteria or make any new
categories of workers eligible for TAA.
It does not make TAA benefits available to workers who quit their
jobs or are fired for cause.
It does not change the type or amount of benefits an eligible worker
can receive.
What it does is create a fair, predictable, and efficient way to make
eligibility determinations where industry-wide effects are obvious.
We owe our trade-affected workers a fair chance to train for the jobs
of the future and get back into the workforce. And we owe our employers
and our economic future well-trained workers.
We already have a program designed to do just that. We should be
doing everything we can to make sure that TAA benefits reach every
qualified worker who needs them. This change is long overdue.
I want to thank Senator Coleman for joining me in introducing this
important legislation. He has been a strong partner in the quest to
make TAA work for every American who needs it.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 1444
Be it enacted by the Senate and House of Representatives
of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Trade Adjustment Assistance
for Industries Act of 2005''.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) Trade Adjustment Assistance assists workers and
agricultural commodity producers who lose their jobs for
trade-related reasons to retrain, gain new skills, and find
new jobs in growing sectors of the economy.
(2) The total cost of providing adjustment assistance
represents a tiny fraction of the gains to the United States
economy as a whole that economists attribute to trade
liberalization.
(3) In circumstances where, due to changes in market
conditions caused by the implementation of bilateral or
multilateral free
[[Page S8671]]
trade agreements, unfair trade practices, unforeseen import
surges, and other reasons, import competition creates
industry-wide effects on domestic workers or agricultural
commodity producers, the current process of assessing
eligibility for trade adjustment assistance on a plant-by-
plant basis is inefficient and can lead to unfair and
inconsistent results.
SEC. 3. OTHER METHODS OF REQUESTING INVESTIGATION.
Section 221 of the Trade Act of 1974 (19 U.S.C. 2271) is
amended--
(1) by adding at the end the following:
``(c) Other Methods of Initiating a Petition.--Upon the
request of the President or the United States Trade
Representative, or the resolution of either the Committee on
Ways and Means of the House of Representatives or the
Committee on Finance of the Senate, the Secretary shall
promptly initiate an investigation under this chapter to
determine the eligibility for adjustment assistance of--
``(1) a group of workers (which may include workers from
more than one facility or employer); or
``(2) all workers in an occupation as that occupation is
defined in the Bureau of Labor Statistics Standard
Occupational Classification System.'';
(2) in subsection (a)(2), by inserting ``or a request or
resolution filed under subsection (c),'' after ``paragraph
(1),''; and
(3) in subsection (a)(3), by inserting ``, request, or
resolution'' after ``petition'' each place it appears.
SEC. 4. NOTIFICATION.
Section 224 of the Trade Act of 1974 (19 U.S.C. 2274) is
amended to read as follows:
``SEC. 224. NOTIFICATIONS REGARDING AFFIRMATIVE
DETERMINATIONS AND SAFEGUARDS.
``(a) Notifications Regarding Chapter 1 Investigations and
Determinations.--Whenever the International Trade Commission
makes a report under section 202(f) containing an affirmative
finding regarding serious injury, or the threat thereof, to a
domestic industry, the Commission shall immediately--
``(1) notify the Secretary of Labor of that finding; and
``(2) in the case of a finding with respect to an
agricultural commodity, as defined in section 291, notify the
Secretary of Agriculture of that finding.
``(b) Notification Regarding Bilateral Safeguards.--The
International Trade Commission shall immediately notify the
Secretary of Labor and, in an investigation with respect to
an agricultural commodity, the Secretary of Agriculture,
whenever the Commission makes an affirmative determination
pursuant to one of the following provisions:
``(1) Section 421 of the Trade Act of 1974 (19 U.S.C.
2451).
``(2) Section 312 of the United States-Australia Free Trade
Agreement Implementation Act (19 U.S.C. 3805 note).
``(3) Section 312 of the United States-Morocco Free Trade
Agreement Implementation Act (19 U.S.C. 3805 note).
``(4) Section 312 of the United States-Singapore Free Trade
Agreement Implementation Act (19 U.S.C. 3805 note).
``(5) Section 312 of the United States-Chile Free Trade
Agreement Implementation Act (19 U.S.C. 3805 note).
``(6) Section 302(b) of the North American Free Trade
Agreement Implementation Act (19 U.S.C. 3352(b)).
``(7) Section 212 of the United States-Jordan Free Trade
Agreement Implementation Act (19 U.S.C. 2112).
``(c) Agricultural Safeguards.--The Commissioner of Customs
shall immediately notify the Secretary of Labor and, in the
case of an agricultural commodity, the Secretary of
Agriculture, whenever the Commissioner of Customs assesses
additional duties on a product pursuant to one of the
following provisions:
``(1) Section 202 of the United States-Australia Free Trade
Agreement Implementation Act (19 U.S.C. 3805 note).
``(2) Section 202 of the United States-Morocco Free Trade
Agreement Implementation Act (19 U.S.C. 3805 note).
``(3) Section 201(c) of the United States-Chile Free Trade
Agreement Implementation Act (19 U.S.C. 3805 note).
``(4) Section 309 of the North American Free Trade
Agreement Implementation Act (19 U.S.C. 3358).
``(5) Section 301(a) of the United States-Canada Free Trade
Agreement Implementation Act of 1988 (19 U.S.C. 2112 note).
``(6) Section 404 of the United States-Israel Free Trade
Agreement Implementation Act (19 U.S.C. 2112 note).
``(d) Textile Safeguards.--The President shall immediately
notify the Secretary of Labor whenever the President makes a
positive determination pursuant to one of the following
provisions:
``(1) Section 322 of the United States-Australia Free Trade
Agreement Implementation Act (19 U.S.C. 3805 note).
``(2) Section 322 of the United States-Morocco Free Trade
Agreement Implementation Act (19 U.S.C. 3805 note).
``(3) Section 322 of the United States-Chile Free Trade
Agreement Implementation Act (19 U.S.C. 3805 note).
``(4) Section 322 of the United States-Singapore Free Trade
Agreement Implementation Act (19 U.S.C. 3805 note).
``(e) Antidumping and Countervailing Duties.--Whenever the
International Trade Commission makes a final affirmative
determination pursuant to section 705 or section 735 of the
Tariff Act of 1930 (19 U.S.C. 1671d or 1673d), the Commission
shall immediately notify the Secretary of Labor and, in the
case of an agricultural commodity, the Secretary of
Agriculture, of that determination.''.
SEC. 5. INDUSTRY-WIDE DETERMINATION.
Section 223 of the Trade Act of 1974 (19 U.S.C. 2273) is
amended by adding at the end the following:
``(e) Investigation Regarding Industry-Wide
Certification.--If the Secretary receives a request or a
resolution under section 221(c) on behalf of workers in a
domestic industry or occupation (described in section
221(c)(2)) or receives 3 or more petitions under section
221(a) within a 180-day period on behalf of groups of workers
in a domestic industry or occupation, the Secretary shall
make an industry-wide determination under subsection (a) of
this section with respect to the domestic industry or
occupation in which the workers are or were employed. If the
Secretary does not make certification under the preceding
sentence, the Secretary shall make a determination of
eligibility under subsection (a) with respect to each group
of workers in that domestic industry or occupation from which
a petition was received.''.
SEC. 6. COORDINATION WITH OTHER TRADE PROVISIONS.
(a) Industry-Wide Certification Based on Global
Safeguards.--
(1) Recommendations by itc.--
(A) Section 202(e)(2)(D) of the Trade Act of 1974 (19
U.S.C. 2252(e)(2)(D)) is amended by striking ``, including
the provision of trade adjustment assistance under chapter
2''.
(B) Section 203(a)(3)(D) of the Trade Act of 1974 (19
U.S.C. 2253(a)(3)(D)) is amended by striking ``, including
the provision of trade adjustment assistance under chapter
2''.
(2) Assistance for workers.--Section 203(a)(1)(A) of the
Trade Act of 1974 (19 U.S.C. 2253(a)(1)(A)) is amended to
read as follows:
``(A) After receiving a report under section 202(f)
containing an affirmative finding regarding serious injury,
or the threat thereof, to a domestic industry--
``(i) the President shall take all appropriate and feasible
action within his power; and
``(ii)(I) the Secretary of Labor shall certify as eligible
to apply for adjustment assistance under section 223 workers
employed in the domestic industry defined by the Commission
if such workers become totally or partially separated, or are
threatened to become totally or partially separated, not
earlier than 1 year before, or not later than 1 year after,
the date on which the Commission made its report to the
President under section 202(f); and
``(II) in the case of a finding with respect to an
agricultural commodity as defined in section 291, the
Secretary of Agriculture shall certify as eligible to apply
for adjustment assistance under section 293 agricultural
commodity producers employed in the domestic production of
the agricultural commodity that is the subject of the finding
during the most recent marketing year.''.
(b) Industry-Wide Certification Based on Bilateral
Safeguard Provisions or Antidumping or Countervailing Duty
Orders.--
(1) In general.--Subchapter A of chapter 1 of title II of
the Trade Act of 1974 (19 U.S.C. 2271 et seq.) is amended by
inserting after section 224 the following new section:
``SEC. 224A. INDUSTRY-WIDE CERTIFICATION WHERE BILATERAL
SAFEGUARD PROVISIONS INVOKED OR ANTIDUMPING OR
COUNTERVAILING DUTIES IMPOSED.
``(a) In General.--
``(1) Mandatory certification.--Not later than 10 days
after the date on which the Secretary of Labor receives a
notification with respect to the imposition of a trade
remedy, safeguard determination, or antidumping or
countervailing duty determination under section 224 (a), (b),
(c), (d), or (e), the Secretary shall certify as eligible for
trade adjustment assistance under section 223(a) workers
employed in the domestic production of the article that is
the subject of the trade remedy, safeguard determination, or
antidumping or countervailing duty determination, as the case
may be, if such workers become totally or partially
separated, or are threatened to become totally or partially
separated not more than 1 year before or not more than 1 year
after the applicable date.
``(2) Applicable date.--In this section, the term
`applicable date' means--
``(A) the date on which the affirmative or positive
determination or finding is made in the case of a
notification under section 224 (a), (b), or (d);
``(B) the date on which a final determination is made in
the case of a notification under section 224(e); or
``(C) the date on which additional duties are assessed in
the case of a notification under section 224(c).
``(b) Qualifying Requirements for Workers.--The provisions
of subchapter B shall apply in the case of a worker covered
by a certification under this section or section 223(e),
except as follows:
``(1) Section 231(a)(5)(A)(ii) shall be applied--
``(A) by substituting `30th week' for `16th week' in
subclause (I); and
``(B) by substituting `26th week' for `8th week' in
subclause (II).
``(2) The provisions of section 236(a)(1) (A) and (B) shall
not apply.''.
(2) Agricultural commodity producers.--Chapter 6 of title
II of the Trade Act of 1974
[[Page S8672]]
(19 U.S.C. 2401 et seq.) is amended by striking section 294
and inserting the following:
``SEC. 294. INDUSTRY-WIDE CERTIFICATION FOR AGRICULTURAL
COMMODITY PRODUCERS WHERE SAFEGUARD PROVISIONS
INVOKED OR ANTIDUMPING OR COUNTERVAILING DUTIES
IMPOSED.
``(a) In General.--Not later than 10 days after the date on
which the Secretary of Agriculture receives a notification
with respect to the imposition of a trade remedy, safeguard
determination, or antidumping or countervailing duty
determination under section 224 (b), (c), or (e), the
Secretary shall certify as eligible for trade adjustment
assistance under section 293(a) agricultural commodity
producers employed in the domestic production of the
agricultural commodity that is the subject of the trade
remedy, safeguard determination, or antidumping or
countervailing duty determination, as the case may be, during
the most recent marketing year.
``(b) Applicable Date.--In this section, the term
`applicable date' means--
``(1) the date on which the affirmative or positive
determination or finding is made in the case of a
notification under section 224(b);
``(2) the date on which a final determination is made in
the case of a notification under section 224(e); or
``(3) the date on which additional duties are assessed in
the case of a notification under section 224(c).''.
(c) Technical and Conforming Amendments.--
(1) Training.--Section 236(a)(2)(A) is amended by striking
``$220,000,000, and inserting ``$440,000,000''.
(2) Table of contents.--The table of contents for title II
of the Trade Act of 1974 is amended--
(A) by striking the item relating to section 224 and
inserting the following:
``Sec. 224. Notifications regarding affirmative determinations and
safeguards.'';
(B) by inserting after the item relating to section 224,
the following:
``Sec. 224A. Industry-wide certification based on bilateral safeguard
provisions invoked or antidumping or countervailing
duties imposed.'';
and
(C) by striking the item relating to section 294, and
inserting the following:
``Sec. 294. Industry-wide certification for agricultural commodity
producers where safeguard provisions invoked or
antidumping or countervailing duties imposed.''.
SEC. 7. REGULATIONS.
The Secretary of the Treasury, the Secretaries of
Agriculture and Labor, and the International Trade Commission
may promulgate such regulations as may be necessary to carry
out the amendments made by this Act.
______
By Mr. GRASSLEY (for himself and Mr. Baucus):
S. 1447. A bill to amend the Internal Revenue Code of 1986 to make
technical corrections, and for other purposes; to the Committee on
Finance.
Mr. GRASSLEY. Mr. President, Today I am pleased to introduce the Tax
Technical Corrections Act of 2005 with Senator Baucus.
Technical corrections measures are routine for major tax acts, and
are necessary to ensure that the provisions of the acts are working
consistently with the originally enacted provisions, or to provide
clerical corrections. Because these measures carry out Congressional
intent, no revenue gain or loss is scored from them.
Technical corrections are derived from a deliberative and
consultative process among the Congressional and administration tax
staffs. That means the Republican and Democratic staffs of the House
Ways and Means and Senate Finance Committees are involved as is the
Treasury Department staff. All of this work is performed with the
participation and guidance of the non-partisan Joint Committee on
Taxation staff. A technical enters the list only if all staffs agree it
is appropriate.
The process and test for technical corrections ensures that only
provisions narrowly drawn to carry out Congressional intent are
included.
Unfortunately, some press reports have distorted the technical
corrections bill. These reports unfairly characterize this technical
corrections bill as a re-opening of substantive tax policy of settled
tax legislation.
While it is true that interested parties are heard on purported
technical corrections, only measures that all staffs agree are purely
technical are included in the bill. Clarifications or substantive
changes to provisions are not considered technical corrections. This is
an important distinction that the press reports unfortunately did not
make.
I ask unanimous consent that the text of this bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 1447
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF
CONTENTS.
(a) Short Title.--This Act may be cited as the ``Tax
Technical Corrections Act of 2005''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a
section or other provision, the reference shall be considered
to be made to a section or other provision of the Internal
Revenue Code of 1986.
(c) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; amendment of 1986 Code; table of contents.
Sec. 2. Amendments related to the American Jobs Creation Act of 2004.
Sec. 3. Amendments related to the Working Families Tax Relief Act of
2004.
Sec. 4. Amendments related to the Jobs and Growth Tax Relief
Reconciliation Act of 2003.
Sec. 5. Amendment related to the Victims of Terrorism Tax Relief Act of
2001.
Sec. 6. Amendment related to the Transportation Equity Act for the 21st
Century.
Sec. 7. Amendments related to the Taxpayer Relief Act of 1997.
Sec. 8. Clerical corrections.
Sec. 9. Other corrections related to the American Jobs Creation Act of
2004.
SEC. 2. AMENDMENTS RELATED TO THE AMERICAN JOBS CREATION ACT
OF 2004.
(a) Amendments Related to Section 102 of the Act.--
(1) Paragraph (1) of section 199(b) is amended by striking
``the employer'' and inserting ``the taxpayer''.
(2) Paragraph (2) of section 199(b) is amended to read as
follows:
``(2) W-2 wages.--For purposes of this section, the term
`W-2 wages' means, with respect to any person for any taxable
year of such person, the sum of the amounts described in
paragraphs (3) and (8) of section 6051(a) paid by such person
with respect to employment of employees by such person during
the calendar year ending during such taxable year. Such term
shall not include any amount which is not properly included
in a return filed with the Social Security Administration on
or before the 60th day after the due date (including
extensions) for such return.''.
(3) Subparagraph (B) of section 199(c)(1) is amended by
inserting ``and'' at the end of clause (i), by striking
clauses (ii) and (iii), and by inserting after clause (i) the
following:
``(ii) other expenses, losses, or deductions (other than
the deduction allowed under this section), which are properly
allocable to such receipts.''.
(4) Paragraph (2) of section 199(c) is amended to read as
follows:
``(2) Allocation method.--The Secretary shall prescribe
rules for the proper allocation of items described in
paragraph (1) for purposes of determining qualified
production activities income. Such rules shall provide for
the proper allocation of items whether or not such items are
directly allocable to domestic production gross receipts.''.
(5) Subparagraph (A) of section 199(c)(4) is amended by
striking clauses (ii) and (iii) and inserting the following
new clauses:
``(ii) in the case of a taxpayer engaged in the active
conduct of a construction trade or business, construction of
real property performed in the United States by the taxpayer
in the ordinary course of such trade or business, or
``(iii) in the case of a taxpayer engaged in the active
conduct of an engineering or architectural services trade or
business, engineering or architectural services performed in
the United States by the taxpayer in the ordinary course of
such trade or business with respect to the construction of
real property in the United States.''.
(6) Subparagraph (B) of section 199(c)(4) is amended by
striking ``and'' at the end of clause (i), by striking the
period at the end of clause (ii) and inserting ``, or'', and
by adding at the end the following:
``(iii) the lease, rental, license, sale, exchange, or
other disposition of land.''.
(7) Paragraph (4) of section 199(c) is amended by adding at
the end the following new subparagraphs:
``(C) Special rule for certain government contracts.--Gross
receipts derived from the manufacture or production of any
property described in subparagraph (A)(i)(I) shall be treated
as meeting the requirements of subparagraph (A)(i) if--
``(i) such property is manufactured or produced by the
taxpayer pursuant to a contract with the Federal Government,
and
``(ii) the Federal Acquisition Regulation requires that
title or risk of loss with respect to such property be
transferred to the Federal Government before the manufacture
or production of such property is complete.
``(D) Partnerships owned by expanded affiliated groups.--
For purposes of this
[[Page S8673]]
paragraph, if all of the interests in the capital and profits
of a partnership are owned by members of a single expanded
affiliated group at all times during the taxable year of such
partnership, the partnership and all members of such group
shall be treated as a single taxpayer during such period.''.
(8) Paragraph (1) of section 199(d) is amended to read as
follows:
``(1) Application of section to pass-thru entities.--
``(A) Partnerships and s corporations.--In the case of a
partnership or S corporation--
``(i) this section shall be applied at the partner or
shareholder level,
``(ii) each partner or shareholder shall take into account
such person's allocable share of each item described in
subparagraph (A) or (B) of subsection (c)(1) (determined
without regard to whether the items described in such
subparagraph (A) exceed the items described in such
subparagraph (B)), and
``(iii) each partner or shareholder shall be treated for
purposes of subsection (b) as having W-2 wages for the
taxable year in an amount equal to the lesser of--
``(I) such person's allocable share of the W-2 wages of the
partnership or S corporation for the taxable year (as
determined under regulations prescribed by the Secretary), or
``(II) 2 times 9 percent of so much of such person's
qualified production activities income as is attributable to
items allocated under clause (ii) for the taxable year.
``(B) Trusts and estates.--In the case of a trust or
estate--
``(i) the items referred to in subparagraph (A)(ii) (as
determined therein) and the W-2 wages of the trust or estate
for the taxable year, shall be apportioned between the
beneficiaries and the fiduciary (and among the beneficiaries)
under regulations prescribed by the Secretary, and
``(ii) for purposes of paragraph (2), adjusted gross income
of the trust or estate shall be determined as provided in
section 67(e) with the adjustments described in such
paragraph.
``(C) Regulations.--The Secretary may prescribe rules
requiring or restricting the allocation of items and wages
under this paragraph and may prescribe such reporting
requirements as the Secretary determines appropriate.''.
(9) Paragraph (3) of section 199(d) is amended to read as
follows:
``(3) Agricultural and horticultural cooperatives.--
``(A) Deduction allowed to patrons.--Any person who
receives a qualified payment from a specified agricultural or
horticultural cooperative shall be allowed for the taxable
year in which such payment is received a deduction under
subsection (a) equal to the portion of the deduction allowed
under subsection (a) to such cooperative which is--
``(i) allowed with respect to the portion of the qualified
production activities income to which such payment is
attributable, and
``(ii) identified by such cooperative in a written notice
mailed to such person during the payment period described in
section 1382(d).
``(B) Cooperative denied deduction for portion of qualified
payments.--The taxable income of a specified agricultural or
horticultural cooperative shall not be reduced under section
1382 by reason of that portion of any qualified payment as
does not exceed the deduction allowable under subparagraph
(A) with respect to such payment.
``(C) Taxable income of cooperatives determined without
regard to certain deductions.--For purposes of this section,
the taxable income of a specified agricultural or
horticultural cooperative shall be computed without regard to
any deduction allowable under subsection (b) or (c) of
section 1382 (relating to patronage dividends, per-unit
retain allocations, and nonpatronage distributions).
``(D) Special rule for marketing cooperatives.--For
purposes of this section, a specified agricultural or
horticultural cooperative described in subparagraph (F)(ii)
shall be treated as having manufactured, produced, grown, or
extracted in whole or significant part any qualifying
production property marketed by the organization which its
patrons have so manufactured, produced, grown, or extracted.
``(E) Qualified payment.--For purposes of this paragraph,
the term `qualified payment' means, with respect to any
person, any amount which--
``(i) is described in paragraph (1) or (3) of section
1385(a),
``(ii) is received by such person from a specified
agricultural or horticultural cooperative, and
``(iii) is attributable to qualified production activities
income with respect to which a deduction is allowed to such
cooperative under subsection (a).
``(F) Specified agricultural or horticultural
cooperative.--For purposes of this paragraph, the term
`specified agricultural or horticultural cooperative' means
an organization to which part I of subchapter T applies which
is engaged--
``(i) in the manufacturing, production, growth, or
extraction in whole or significant part of any agricultural
or horticultural product, or
``(ii) in the marketing of agricultural or horticultural
products.''.
(10) Clause (i) of section 199(d)(4)(B) is amended--
(A) by striking ``50 percent'' and inserting ``more than 50
percent'', and
(B) by striking ``80 percent'' and inserting ``at least 80
percent''.
(11)(A) Paragraph (6) of section 199(d) is amended to read
as follows:
``(6) Coordination with minimum tax.--For purposes of
determining alternative minimum taxable income under section
55--
``(A) the deduction under this section shall be determined
without regard to any adjustments under sections 56 through
59, and
``(B) in the case of a corporation, subsection (a)(1)(B)
shall be applied by substituting `alternative minimum taxable
income' for `taxable income'.''.
(B) Paragraph (2) of section 199(a) is amended by striking
``subsections (d)(1) and (d)(6)'' and inserting ``subsection
(d)(1)''.
(12) Subsection (d) of section 199 is amended by
redesignating paragraph (7) as paragraph (8) and by inserting
after paragraph (6) the following new paragraph:
``(7) Unrelated business taxable income.--For purposes of
determining the tax imposed by section 511, subsection
(a)(1)(B) shall be applied by substituting `unrelated
business taxable income' for `taxable income'.''.
(13) Subsection (d) of section 199, as amended by the
preceding paragraphs of this subsection, is further amended
by redesignating paragraph (8) as paragraph (9) and by
inserting after paragraph (7) the following new paragraph:
``(8) Coordination with carryover of net operating loss.--
The deduction allowable under this section shall not be taken
into account for purposes of computing taxable income under
section 172(b)(2).''.
(14) Paragraph (9) of section 199(d), as redesignated by
the preceding paragraphs of this subsection, is amended by
inserting ``, including regulations which prevent more than 1
taxpayer from being allowed a deduction under this section
with respect to any activity described in subsection
(c)(4)(A)(i)'' before the period at the end.
(15) Clause (i) of section 163(j)(6)(A) is amended by
striking ``and'' at the end of subclause (II), by
redesignating subclause (III) as subclause (IV), and by
inserting after subclause (II) the following new subclause:
``(III) any deduction allowable under section 199, and''.
(16) Paragraph (2) of section 170(b) is amended by
redesignating subparagraphs (C) and (D) as subparagraphs (D)
and (E), respectively, and by inserting after subparagraph
(B) the following new subparagraph:
``(C) section 199,''.
(17) Paragraph (1) of section 613A(d) is amended by
redesignating subparagraphs (B), (C), and (D) as
subparagraphs (C), (D), and (E), respectively, and by
inserting after subparagraph (A) the following new
subparagraph:
``(B) any deduction allowable under section 199,''.
(18) Subsection (e) of section 102 of the American Jobs
Creation Act of 2004 is amended to read as follows:
``(e) Effective Date.--
``(1) In general.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2004.
``(2) Application to pass-thru entities, etc.--In
determining the deduction under section 199 of the Internal
Revenue Code of 1986 (as added by this section), items
arising from a taxable year of a partnership, S corporation,
estate, or trust beginning before January 1, 2005, shall not
be taken into account for purposes of subsection (d)(1) of
such section.''.
(b) Amendments Related to Section 231 of the Act.--
(1) Clause (ii) of section 1361(c)(1)(A) is amended by
inserting ``(and their estates)'' after ``all members of the
family''.
(2) Subparagraph (C) of section 1361(c)(1) is amended to
read as follows:
``(C) Effect of adoption, etc.--For purposes of this
paragraph, any legally adopted child of an individual, any
child who is lawfully placed with an individual for legal
adoption by the individual, and any eligible foster child of
an individual (within the meaning of section 152(f)(1)(C)),
shall be treated as a child of such individual by blood.''.
(c) Amendment Related to Section 235 of the Act.--
Subsection (b) of section 235 of the American Jobs Creation
Act of 2004 is amended by striking ``taxable years
beginning'' and inserting ``transfers''.
(d) Amendments Related to Section 243 of the Act.--
(1) Paragraph (7) of section 856(c) is amended to read as
follows:
``(7) Rules of application for failure to satisfy paragraph
(4).--
``(A) In general.--A corporation, trust, or association
that fails to meet the requirements of paragraph (4) (other
than a failure to meet the requirements of paragraph
(4)(B)(iii) which is described in subparagraph (B)(i) of this
paragraph) for a particular quarter shall nevertheless be
considered to have satisfied the requirements of such
paragraph for such quarter if--
``(i) following the corporation, trust, or association's
identification of the failure to satisfy the requirements of
such paragraph for a particular quarter, a description of
each asset that causes the corporation, trust, or association
to fail to satisfy the requirements of such paragraph at the
close of such quarter of any taxable year is set forth in a
schedule for such quarter filed in accordance with
regulations prescribed by the Secretary,
``(ii) the failure to meet the requirements of such
paragraph for a particular quarter is due to reasonable cause
and not due to willful neglect, and
[[Page S8674]]
``(iii)(I) the corporation, trust, or association disposes
of the assets set forth on the schedule specified in clause
(i) within 6 months after the last day of the quarter in
which the corporation, trust or association's identification
of the failure to satisfy the requirements of such paragraph
occurred or such other time period prescribed by the
Secretary and in the manner prescribed by the Secretary, or
``(II) the requirements of such paragraph are otherwise met
within the time period specified in subclause (I).
``(B) Rule for certain de minimis failures.--A corporation,
trust, or association that fails to meet the requirements of
paragraph (4)(B)(iii) for a particular quarter shall
nevertheless be considered to have satisfied the requirements
of such paragraph for such quarter if--
``(i) such failure is due to the ownership of assets the
total value of which does not exceed the lesser of--
``(I) 1 percent of the total value of the trust's assets at
the end of the quarter for which such measurement is done,
and
``(II) $10,000,000, and
``(ii)(I) the corporation, trust, or association, following
the identification of such failure, disposes of assets in
order to meet the requirements of such paragraph within 6
months after the last day of the quarter in which the
corporation, trust or association's identification of the
failure to satisfy the requirements of such paragraph
occurred or such other time period prescribed by the
Secretary and in the manner prescribed by the Secretary, or
``(II) the requirements of such paragraph are otherwise met
within the time period specified in subclause (I).
``(C) Tax.--
``(i) Tax imposed.--If subparagraph (A) applies to a
corporation, trust, or association for any taxable year,
there is hereby imposed on such corporation, trust, or
association a tax in an amount equal to the greater of--
``(I) $50,000, or
``(II) the amount determined (pursuant to regulations
promulgated by the Secretary) by multiplying the net income
generated by the assets described in the schedule specified
in subparagraph (A)(i) for the period specified in clause
(ii) by the highest rate of tax specified in section 11.
``(ii) Period.--For purposes of clause (i)(II), the period
described in this clause is the period beginning on the first
date that the failure to satisfy the requirements of such
paragraph (4) occurs as a result of the ownership of such
assets and ending on the earlier of the date on which the
trust disposes of such assets or the end of the first quarter
when there is no longer a failure to satisfy such paragraph
(4).
``(iii) Administrative provisions.--For purposes of
subtitle F, the taxes imposed by this subparagraph shall be
treated as excise taxes with respect to which the deficiency
procedures of such subtitle apply.''.
(2) Subsection (m) of section 856 is amended by adding at
the end the following new paragraph:
``(6) Transition rule.--
``(A) In general.--Notwithstanding paragraph (2)(C),
securities held by a trust shall not be considered securities
held by the trust for purposes of subsection
(c)(4)(B)(iii)(III) if such securities--
``(i) were held by such trust on October 22, 2004, and
continuously thereafter, and
``(ii) would not be taken into account for purposes of such
subsection by reason of paragraph (7)(C) of subsection (c)
(as in effect on October 22, 2004) if the amendments made by
section 243 of the American Jobs Creation Act of 2004 had
never been enacted.
``(B) Rule not to apply to securities held after maturity
date.--Subparagraph (A) shall not apply with respect to any
security after the latest maturity date under the contract
(as in effect on October 22, 2004) taking into account any
renewal or extension permitted under the contract if such
renewal or extension does not significantly modify any other
terms of the contract.
``(C) Successors.--If the successor of a trust to which
this paragraph applies acquires securities in a transaction
to which section 381 applies, such trusts shall be treated as
a single entity for purposes of determining the holding
period of such securities under subparagraph (A)(i).''.
(3) Subparagraph (E) of section 857(b)(2) is amended by
striking ``section 856(c)(7)(B)(iii), and section
856(g)(1).'' and inserting ``section 856(c)(7)(C), and
section 856(g)(5)''.
(4) Subsection (g) of section 243 of the American Jobs
Creation Act of 2004 is amended to read as follows:
``(g) Effective Dates.--
``(1) Subsections (a) and (b).--The amendments made by
subsections (a) and (b) shall apply to taxable years
beginning after December 31, 2000.
``(2) Subsections (c) and (e).--The amendments made by
subsections (c) and (e) shall apply to taxable years
beginning after the date of the enactment of this Act.
``(3) Subsection (d).--The amendment made by subsection (d)
shall apply to transactions entered into after December 31,
2004.
``(4) Subsection (f).--
``(A) The amendment made by paragraph (1) of subsection (f)
shall apply to failures with respect to which the
requirements of subparagraph (A) or (B) of section 856(c)(7)
of the Internal Revenue Code of 1986 (as added by such
paragraph) are satisfied after the date of the enactment of
this Act.
``(B) The amendment made by paragraph (2) of subsection (f)
shall apply to failures with respect to which the
requirements of paragraph (6) of section 856(c) of the
Internal Revenue Code of 1986 (as amended by such paragraph)
are satisfied after the date of the enactment of this Act.
``(C) The amendments made by paragraph (3) of subsection
(f) shall apply to failures with respect to which the
requirements of paragraph (5) of section 856(g) of the
Internal Revenue Code of 1986 (as added by such paragraph)
are satisfied after the date of the enactment of this Act.
``(D) The amendment made by paragraph (4) of subsection (f)
shall apply to taxable years ending after the date of the
enactment of this Act.
``(E) The amendments made by paragraph (5) of subsection
(f) shall apply to statements filed after the date of the
enactment of this Act.''.
(e) Amendments Related to Section 244 of the Act.--
(1) Paragraph (2) of section 181(d) is amended by striking
the last sentence in subparagraph (A), by redesignating
subparagraph (B) as subparagraph (C), and by inserting after
subparagraph (A) the following new subparagraph:
``(B) Special rules for television series.--In the case of
a television series--
``(i) each episode of such series shall be treated as a
separate production, and
``(ii) only the first 44 episodes of such series shall be
taken into account.''.
(2) Subparagraph (C) of section 1245(a)(2) is amended by
inserting ``181,'' after ``179B,''.
(f) Amendment Related to Section 245 of the Act.--
Subsection (b) of section 45G is amended to read as follows:
``(b) Limitation.--The credit allowed under subsection (a)
for any taxable year shall not exceed the product of--
``(1) $3,500, and
``(2) the sum of--
``(A) the number of miles of railroad track owned or leased
by the eligible taxpayer as of the close of the taxable year,
and
``(B) the number of miles of railroad track assigned for
purposes of this subsection to the eligible taxpayer by a
Class II or Class III railroad which owns or leases such
railroad track as of the close of the taxable year.
Any mile which is assigned by a taxpayer under paragraph
(2)(B) may not be taken into account by such taxpayer under
paragraph (2)(A).''.
(g) Amendments Related to Section 248 of the Act.--
(1) Subsection (c) of section 1356 is amended--
(A) by striking paragraph (3), and
(B) by adding at the end of paragraph (2) the following new
flush sentence:
``Such term shall not include any core qualifying
activities.''.
(2) The last sentence of section 1354(b) is amended by
inserting ``on or'' after ``only if made''.
(h) Amendment Related to Section 301 of the Act.--Section
6427 is amended by striking subsection (f).
(i) Amendment Related to Section 314 of the Act.--Paragraph
(2) of section 55(c) is amended by striking ``regular tax''
and inserting ``regular tax liability''.
(j) Amendments Related to Section 322 of the Act.--
(1) Subparagraph (C) of section 49(a)(1) is amended by
inserting ``and'' at the end of clause (i), by striking
``and'' at the end of clause (ii), and by striking clause
(iii).
(2)(A) Subparagraph (B) of section 194(b)(1) is amended to
read as follows:
``(B) Dollar limitation.--The aggregate amount of
reforestation expenditures which may be taken into account
under subparagraph (A) with respect to each qualified timber
property for any taxable year shall not exceed--
``(i) except as provided in clause (ii) or (iii), $10,000,
``(ii) in the case of a separate return by a married
individual (as defined in section 7703), $5,000, and
``(iii) in the case of a trust, zero.''.
(B) Paragraph (4) of section 194(c) is amended to read as
follows:
``(4) Treatment of trusts and estates.--The aggregate
amount of reforestation expenditures incurred by any trust or
estate shall be apportioned between the income beneficiaries
and the fiduciary under regulations prescribed by the
Secretary. Any amount so apportioned to a beneficiary shall
be taken into account as expenditures incurred by such
beneficiary in applying this section to such beneficiary.''.
(3) Subparagraph (C) of section 1245(a)(2) is amended by
striking ``or 193'' and inserting ``193, or 194''.
(k) Amendments Related to Section 336 of the Act.--
(1) Clause (iv) of section 168(k)(2)(A) is amended by
striking ``subparagraphs (B) and (C)'' and inserting
``subparagraph (B) or (C)''.
(2) Clause (iii) of section 168(k)(4)(B) is amended by
striking ``and paragraph (2)(C)'' and inserting ``or
paragraph (2)(C) (as so modified)''.
(l) Amendment Related to Section 402 of the Act.--Paragraph
(2) of section 904(g) is amended to read as follows:
``(2) Overall domestic loss.--For purposes of this
subsection--
``(A) In general.--The term `overall domestic loss' means--
``(i) with respect to any qualified taxable year, the
domestic loss for such taxable year to the extent such loss
offsets taxable income from sources without the United
[[Page S8675]]
States for the taxable year or for any preceding qualified
taxable year by reason of a carryback, and
``(ii) with respect to any other taxable year, the domestic
loss for such taxable year to the extent such loss offsets
taxable income from sources without the United States for any
preceding qualified taxable year by reason of a carryback.
``(B) Domestic loss.--For purposes of subparagraph (A), the
term `domestic loss' means the amount by which the gross
income for the taxable year from sources within the United
States is exceeded by the sum of the deductions properly
apportioned or allocated thereto (determined without regard
to any carryback from a subsequent taxable year).
``(C) Qualified taxable year.--For purposes of subparagraph
(A), the term `qualified taxable year' means any taxable year
for which the taxpayer chose the benefits of this subpart.''.
(m) Amendment Related to Section 403 of the Act.--Section
403 of the American Jobs Creation Act of 2004 is amended by
adding at the end the following new subsection:
``(d) Transition Rule.--If the taxpayer elects (at such
time and in such form and manner as the Secretary of the
Treasury may prescribe) to have the rules of this subsection
apply--
``(1) the amendments made by this section shall not apply
to taxable years beginning after December 31, 2002, and
before January 1, 2005, and
``(2) in the case of taxable years beginning after December
31, 2004, clause (iv) of section 904(d)(4)(C) of the Internal
Revenue Code of 1986 (as amended by this section) shall be
applied by substituting `January 1, 2005' for `January 1,
2003' both places it appears.''.
(n) Amendments Related to Section 413 of the Act.--
(1) Subsection (b) of section 532 is amended by striking
paragraph (2) and redesignating paragraphs (3) and (4) as
paragraphs (2) and (3), respectively.
(2) Subsection (b) of section 535 is amended by adding at
the end the following new paragraph:
``(10) Controlled foreign corporations.--There shall be
allowed as a deduction the amount of the corporation's income
for the taxable year which is included in the gross income of
a United States shareholder under section 951(a). In the case
of any corporation the accumulated taxable income of which
would (but for this sentence) be determined without allowance
of any deductions, the deduction under this paragraph shall
be allowed and shall be appropriately adjusted to take into
account any deductions which reduced such inclusion.''.
(o) Amendment Related to Section 415 of the Act.--
Subparagraph (D) of section 904(d)(2) is amended by inserting
``as in effect before its repeal'' after ``section 954(f)''.
(p) Amendments Related to Section 418 of the Act.--
(1) The second sentence of section 897(h)(1) is amended--
(A) by striking ``any distribution'' and all that follows
through ``any class of stock'' and inserting ``any
distribution by a real estate investment trust with respect
to any class of stock'', and
(B) by striking ``the taxable year'' and inserting ``the 1-
year period ending on the date of the distribution''.
(2) Subsection (c) of section 418 of the American Jobs
Creation Act of 2004 is amended by striking ``taxable years
beginning after the date of the enactment of this Act'' and
inserting ``any distribution by a real estate investment
trust which is treated as a deduction for a taxable year of
such trust beginning after the date of the enactment of this
Act''.
(q) Amendments Related to Section 422 of the Act.--
(1) Subparagraph (B) of section 965(a)(2) is amended by
inserting ``from another controlled foreign corporation in
such chain of ownership'' before ``, but only to the
extent''.
(2) Subparagraph (A) of section 965(b)(2) is amended by
inserting ``cash'' before ``dividends''.
(3) Paragraph (3) of section 965(b) is amended by adding at
the end the following: ``The Secretary may prescribe such
regulations as may be necessary or appropriate to prevent the
avoidance of the purposes of this paragraph, including
regulations which provide that cash dividends shall not be
taken into account under subsection (a) to the extent such
dividends are attributable to the direct or indirect transfer
(including through the use of intervening entities or capital
contributions) of cash or other property from a related
person (as so defined) to a controlled foreign
corporation.''.
(4) Paragraph (1) of section 965(c) is amended to read as
follows:
``(1) Applicable financial statement.--The term `applicable
financial statement' means--
``(A) with respect to a United States shareholder which is
required to file a financial statement with the Securities
and Exchange Commission (or which is included in such a
statement so filed by another person), the most recent
audited annual financial statement (including the notes which
form an integral part of such statement) of such shareholder
(or which includes such shareholder)--
``(i) which was so filed on or before June 30, 2003, and
``(ii) which was certified on or before June 30, 2003, as
being prepared in accordance with generally accepted
accounting principles, and
``(B) with respect to any other United States shareholder,
the most recent audited financial statement (including the
notes which form an integral part of such statement) of such
shareholder (or which includes such shareholder)--
``(i) which was certified on or before June 30, 2003, as
being prepared in accordance with generally accepted
accounting principles, and
``(ii) which is used for the purposes of a statement or
report--
``(I) to creditors,
``(II) to shareholders, or
``(III) for any other substantial nontax purpose.''.
(5) Paragraph (2) of section 965(d) is amended by striking
``properly allocated and apportioned'' and inserting
``directly allocable''.
(6) Subsection (d) of section 965 is amended by adding at
the end the following new paragraph:
``(4) Coordination with section 78.--Section 78 shall not
apply to any tax which is not allowable as a credit under
section 901 by reason of this subsection.''.
(7) The last sentence of section 965(e)(1) is amended by
inserting ``which are imposed by foreign countries and
possessions of the United States and are'' after ``taxes''.
(8) Subsection (f) of section 965 is amended by inserting
``on or'' before ``before the due date''.
(r) Amendments Related to Section 501 of the Act.--
(1) Subparagraph (A) of section 164(b)(5) is amended to
read as follows:
``(A) Election to deduct state and local sales taxes in
lieu of state and local income taxes.--At the election of the
taxpayer for the taxable year, subsection (a) shall be
applied--
``(i) without regard to the reference to State and local
income taxes, and
``(ii) as if State and local general sales taxes were
referred to in a paragraph thereof.''.
(2) Clause (ii) of section 56(b)(1)(A) is amended by
inserting ``or clause (ii) of section 164(b)(5)(A)'' before
the period at the end.
(s) Amendments Related to Section 708 of the Act.--Section
708 of the American Jobs Creation Act of 2004 is amended--
(1) in subsection (a), by striking ``contract commencement
date'' and inserting ``construction commencement date'', and
(2) by redesignating subsection (d) as subsection (e) and
inserting after subsection (c) the following new subsection:
``(d) Certain Adjustments Not to Apply.--Section 481 of the
Internal Revenue Code of 1986 shall not apply with respect to
any change in the method of accounting which is required by
this section.''.
(t) Amendments Related to Section 710 of the Act.--
(1) Clause (ii) of section 45(b)(4)(B) is amended by
striking ``the date of the enactment of this Act'' and
inserting ``January 1, 2005,''.
(2) Clause (ii) of section 45(c)(3)(A) is amended by
inserting ``or any nonhazardous lignin waste material'' after
``cellulosic waste material''.
(3) Subsection (e) of section 45 is amended by striking
paragraph (6).
(4)(A) Paragraph (9) of section 45(e) is amended to read as
follows:
``(9) Coordination with credit for producing fuel from a
nonconventional source.--
``(A) In general.--The term `qualified facility' shall not
include any facility which produces electricity from gas
derived from the biodegradation of municipal solid waste if
such biodegradation occurred in a facility (within the
meaning of section 29) the production from which is allowed
as a credit under section 29 for the taxable year or any
prior taxable year.
``(B) Refined coal facilities.--The term `refined coal
production facility' shall not include any facility the
production from which is allowed as a credit under section 29
for the taxable year or any prior taxable year.''.
(B) Subparagraph (C) of section 45(e)(8) is amended by
striking ``and (9)''.
(5) Subclause (I) of section 168(e)(3)(B)(vi) is amended to
read as follows:
``(I) is described in subparagraph (A) of section 48(a)(3)
(or would be so described if `solar and wind' were
substituted for `solar' in clause (i) thereof and the last
sentence of such section did not apply to such
subparagraph),''.
(6) Paragraph (4) of section 710(g) of the American Jobs
Creation Act of 2004 is amended by striking ``January 1,
2004'' and inserting ``January 1, 2005''.
(u) Amendment Related to Section 801 of the Act.--Paragraph
(3) of section 7874(a) is amended to read as follows:
``(3) Coordination with subsection (b).--A corporation
which is treated as a domestic corporation under subsection
(b) shall not be treated as a surrogate foreign corporation
for purposes of paragraph (2)(A).''.
(v) Amendments Related to Section 804 of the Act.--
(1) Subparagraph (C) of section 877(g)(2) is amended by
striking ``section 7701(b)(3)(D)(ii)'' and inserting
``section 7701(b)(3)(D)''.
(2) Subsection (n) of section 7701 is amended to read as
follows:
``(n) Special Rules for Determining When an Individual Is
No Longer a United States Citizen or Long-term Resident.--For
purposes of this chapter--
[[Page S8676]]
``(1) United states citizens.--An individual who would (but
for this paragraph) cease to be treated as a citizen of the
United States shall continue to be treated as a citizen of
the United States until such individual--
``(A) gives notice of an expatriating act (with the
requisite intent to relinquish citizenship) to the Secretary
of State, and
``(B) provides a statement in accordance with section 6039G
(if such a statement is otherwise required).
``(2) Long-term residents.--A long-term resident (as
defined in section 877(e)(2)) who would (but for this
paragraph) be described in section 877(e)(1) shall be treated
as a lawful permanent resident of the United States and as
not described in section 877(e)(1) until such individual--
``(A) gives notice of termination of residency (with the
requisite intent to terminate residency) to the Secretary of
Homeland Security, and
``(B) provides a statement in accordance with section 6039G
(if such a statement is otherwise required).''.
(w) Amendment Related to Section 811 of the Act.--
Subsection (c) of section 811 of the American Jobs Creation
Act of 2004 is amended by inserting ``and which were not
filed before such date'' before the period at the end.
(x) Amendments Related to Section 812 of the Act.--
(1) Subsection (b) of section 6662 is amended by adding at
the end the following new sentence: ``Except as provided in
paragraph (1) or (2)(B) of section 6662A(e), this section
shall not apply to the portion of any underpayment which is
attributable to a reportable transaction understatement on
which a penalty is imposed under section 6662A.''
(2) Paragraph (2) of section 6662A(e) is amended to read as
follows:
``(2) Coordination with other penalties.--
``(A) Coordination with fraud penalty.--This section shall
not apply to any portion of an understatement on which a
penalty is imposed under section 6663.
``(B) Coordination with gross valuation misstatement
penalty.--This section shall not apply to any portion of an
understatement on which a penalty is imposed under section
6662 if the rate of the penalty is determined under section
6662(h).''.
(3) Subsection (f) of section 812 of the American Jobs
Creation Act of 2004 is amended to read as follows:
``(f) Effective Dates.--
``(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
ending after the date of the enactment of this Act.
``(2) Disqualified opinions.--Section 6664(d)(3)(B) of the
Internal Revenue Code of 1986 (as added by subsection (c))
shall not apply to the opinion of a tax advisor if--
``(A) the opinion was provided to the taxpayer before the
date of the enactment of this Act,
``(B) the opinion relates to one or more transactions all
of which were entered into before such date, and
``(C) the tax treatment of items relating to each such
transaction was included on a return or statement filed by
the taxpayer before such date.''.
(y) Amendment Related to Section 814 of the Act.--
Subparagraph (B) of section 6501(a)(10) is amended by
striking ``(as defined in section 6111)''.
(z) Amendment Related to Section 815 of the Act.--Paragraph
(1) of section 6112(b) is amended ``(or was required to
maintain a list under subsection (a) as in effect before the
enactment of the American Jobs Creation Act of 2004)'' after
``a list under subsection (a)''.
(aa) Amendments Related to Section 832 of the Act.--
(1) Subsection (e) of section 853 is amended to read as
follows:
``(e) Treatment of Certain Taxes Not Allowed as a Credit
Under Section 901.--This section shall not apply to any tax
with respect to which the regulated investment company is not
allowed a credit under section 901 by reason of subsection
(k) or (l) of such section.''.
(2) Clause (i) of section 901(l)(2)(C) is amended by
striking ``if such security were stock''.
(bb) Amendments Related to Section 833 of the Act.--
(1) Subsection (a) of section 734 is amended by inserting
``with respect to such distribution'' before the period at
the end.
(2) So much of subsection (b) of section 734 as precedes
paragraph (1) is amended to read as follows:
``(b) Method of Adjustment.--In the case of a distribution
of property to a partner by a partnership with respect to
which the election provided in section 754 is in effect or
with respect to which there is a substantial basis reduction,
the partnership shall--''.
(cc) Amendment Related to Section 835 of the Act.--
Paragraph (3) of section 860G(a) is amended--
(1) in subparagraph (A)(iii)(I), by striking ``the
obligation'' and inserting ``a reverse mortgage loan or other
obligation'', and
(2) by striking all that follows subparagraph (C) and
inserting the following:
``For purposes of subparagraph (A), any obligation secured by
stock held by a person as a tenant-stockholder (as defined in
section 216) in a cooperative housing corporation (as so
defined) shall be treated as secured by an interest in real
property. For purposes of subparagraph (A), any obligation
originated by the United States or any State (or any
political subdivision, agency, or instrumentality of the
United States or any State) shall be treated as principally
secured by an interest in real property if more than 50
percent of such obligations which are transferred to, or
purchased by, the REMIC are principally secured by an
interest in real property (determined without regard to this
sentence).''.
(dd) Amendments Related to Section 836 of the Act.--
(1) Paragraph (1) of section 334(b) is amended by striking
``except that'' and all that follows and inserting ``except
that, in the hands of such distributee--
``(A) the basis of such property shall be the fair market
value of the property at the time of the distribution in any
case in which gain or loss is recognized by the liquidating
corporation with respect to such property, and
``(B) the basis of any property described in section
362(e)(1)(B) shall be the fair market value of the property
at the time of the distribution in any case in which such
distributee's aggregate adjusted basis of such property would
(but for this subparagraph) exceed the fair market value of
such property immediately after such liquidation.''.
(2) Clause (ii) of section 362(e)(2)(C) is amended to read
as follows:
``(ii) Election.--Any election under clause (i) shall be
made at such time and in such form and manner as the
Secretary may prescribe, and, once made, shall be
irrevocable.''.
(ee) Amendment Related to Section 840 of the Act.--
Subsection (d) of section 121 is amended--
(1) by redesignating the paragraph (10) relating to
property acquired from a decedent as paragraph (11) and by
moving such paragraph to the end of such subsection, and
(2) by amending the paragraph (10) relating to property
acquired in like-kind exchange to read as follows:
``(10) Property acquired in like-kind exchange.--If a
taxpayer acquires property in an exchange with respect to
which gain is not recognized (in whole or in part) to the
taxpayer under subsection (a) or (b) of section 1031,
subsection (a) shall not apply to the sale or exchange of
such property by such taxpayer (or by any person whose basis
in such property is determined, in whole or in part, by
reference to the basis in the hands of such taxpayer) during
the 5-year period beginning with the date of such
acquisition.''.
(ff) Amendment Related to Section 849 of the Act.--
Subsection (a) of section 849 of the American Jobs Creation
Act of 2004 is amended by inserting ``, and in the case of
property treated as tax-exempt use property other than by
reason of a lease, to property acquired after March 12,
2004'' before the period at the end.
(gg) Amendments Related to Section 853 of the Act.--
(1) Subparagraph (C) of section 4081(a)(2) is amended by
striking ``for use in commercial aviation'' and inserting
``for use in commercial aviation by a person registered for
such use under section 4101''.
(2) So much of paragraph (2) of section 4081(d) as precedes
subparagraph (A) is amended to read as follows:
``(2) Aviation fuels.--The rates of tax specified in
clauses (ii) and (iv) of subsection (a)(2)(A) shall be 4.3
cents per gallon--''.
(hh) Amendment Related to Section 884 of the Act.--
Subparagraph (B) of section 170(f)(12) is amended by adding
at the end the following new clauses:
``(v) Whether the donee organization provided any goods or
services in consideration, in whole or in part, for the
qualified vehicle.
``(vi) A description and good faith estimate of the value
of any goods or services referred to in clause (v) or, if
such goods or services consist solely of intangible religious
benefits (as defined in paragraph (8)(B)), a statement to
that effect.''.
(ii) Amendments Related to Section 885 of the Act.--
(1) Paragraph (2) of section 26(b) is amended by striking
``and'' at the end of subparagraph (R), by striking the
period at the end of subparagraph (S) and inserting ``,
and'', and by adding at the end the following new
subparagraph:
``(T) subsections (a)(1)(B)(i) and (b)(4)(A) of section
409A (relating to interest and additional tax with respect to
certain deferred compensation).''.
(2) Clause (ii) of section 409A(a)(4)(C) is amended by
striking ``first''.
(3)(A) Notwithstanding section 885(d)(1) of the American
Jobs Creation Act of 2004, subsection (b) of section 409A of
the Internal Revenue Code of 1986 shall take effect on
January 1, 2005.
(B) Not later than 90 days after the date of the enactment
of this Act, the Secretary of the Treasury shall issue
guidance under which a nonqualified deferred compensation
plan which is in violation of the requirements of section
409A(b) of such Code shall be treated as not having violated
such requirements if such plan comes into conformance with
such requirements during such limited period as the Secretary
may specify in such guidance.
(4) Subsection (f) of section 885 of the American Jobs
Creation Act of 2004 is amended by striking ``December 31,
2004'' the first place it appears and inserting ``January 1,
2005''.
(jj) Amendments Related to Section 898 of the Act.--
(1) Paragraph (3) of section 361(b) is amended by inserting
``(reduced by the amount of the liabilities assumed (within
the meaning
[[Page S8677]]
of section 357(c)))'' before the period at the end.
(2) Paragraph (1) of section 357(d) is amended by inserting
``section 361(b)(3),'' after ``section 358(h),''.
(kk) Amendment Related to Section 899 of the Act.--
Subparagraph (A) of section 351(g)(3) is amended by adding at
the end the following: ``If there is not a real and
meaningful likelihood that dividends beyond any limitation or
preference will actually be paid, the possibility of such
payments will be disregarded in determining whether stock is
limited and preferred as to dividends.''.
(ll) Amendment Related to Section 902 of the Act.--
Paragraph (1) of section 709(b) is amended by striking
``taxpayer'' both places it appears and inserting
``partnership''.
(mm) Amendment Related to Section 909 of the Act.--Clause
(ii) of section 451(i)(4)(B) is amended by striking ``the
close of the period applicable under subsection (a)(2)(B) as
extended under paragraph (2)'' and inserting ``December 31,
2006''.
(nn) Effective Date.--The amendments made by this section
shall take effect as if included in the provisions of the
American Jobs Creation Act of 2004 to which they relate.
SEC. 3. AMENDMENTS RELATED TO THE WORKING FAMILIES TAX RELIEF
ACT OF 2004.
(a) Amendment Related to Section 201 of the Act.--Paragraph
(2) of section 152(e) is amended to read as follows:
``(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 the noncustodial parent shall be entitled to any
deduction allowable under section 151 for such child, and in
the case of such a decree or agreement executed before
January 1, 1985, the noncustodial parent provides at least
$600 for the support of such child during such calendar year,
or
``(B) the custodial parent signs 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.
For purposes of subparagraph (A), 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.''.
(b) Amendment Related to Section 203 of the Act.--
Subparagraph (B) of section 21(b)(1) is amended by inserting
``(as defined in section 152, determined without regard to
subsections (b)(1), (b)(2), and (d)(1)(B))'' after
``dependent of the taxpayer''.
(c) Amendment Related to Section 207 of the Act.--
Subparagraph (A) of section 223(d)(2) is amended by inserting
``, determined without regard to subsections (b)(1), (b)(2),
and (d)(1)(B) thereof'' after ``section 152''.
(d) Effective Date.--The amendments made by this section
shall take effect as if included in the provisions of the
Working Families Tax Relief Act of 2004 to which they relate.
SEC. 4. AMENDMENTS RELATED TO THE JOBS AND GROWTH TAX RELIEF
RECONCILIATION ACT OF 2003.
(a) Amendments Related to Section 201 of the Act.--
(1) Clause (ii) of section 168(k)(4)(B) is amended to read
as follows:
``(ii) which is--
``(I) acquired by the taxpayer after May 5, 2003, and
before January 1, 2005, but only if no written binding
contract for the acquisition was in effect before May 6,
2003, or
``(II) acquired by the taxpayer pursuant to a written
binding contract which was entered into after May 5, 2003,
and before January 1, 2005, and''.
(2) Subparagraph (D) of section 1400L(b)(2) is amended by
striking ``September 11, 2004'' and inserting ``January 1,
2005''.
(b) Effective Date.--The amendment made by this section
shall take effect as if included in section 201 of the Jobs
and Growth Tax Relief and Reconciliation Act of 2003.
SEC. 5. AMENDMENT RELATED TO THE VICTIMS OF TERRORISM TAX
RELIEF ACT OF 2001.
(a) Amendment Related to Section 201 of the Act.--Paragraph
(17) of section 6103(l) is amended by striking ``subsection
(f), (i)(7), or (p)'' and inserting ``subsection (f), (i)(8),
or (p)''.
(b) Effective Date.--The amendment made by this section
shall take effect as if included in section 201 of the
Victims of Terrorism Tax Relief Act of 2001.
SEC. 6. AMENDMENT RELATED TO THE TRANSPORTATION EQUITY ACT
FOR THE 21ST CENTURY.
(a) Amendment Related to Section 9005 of the Act.--The last
sentence of paragraph (2) of section 9504(b) is amended by
striking ``subparagraph (B)'' and inserting ``subparagraph
(C)''.
(b) Effective Date.--The amendment made by this section
shall take effect as if included in section 9005 of the
Transportation Equity Act for the 21st Century.
SEC. 7. AMENDMENTS RELATED TO THE TAXPAYER RELIEF ACT OF
1997.
(a) Amendments Related to Section 1055 of the Act.--
(1) The last sentence of section 6411(a) is amended by
striking ``6611(f)(3)(B)'' and inserting ``6611(f)(4)(B)''.
(2) Paragraph (4) of section 6601(d) is amended by striking
``6611(f)(3)(A)'' and inserting ``6611(f)(4)(A)''.
(b) Amendment Related to Section 1144 of the Act.--
Subparagraph (B) of section 6038B(a)(1) is amended by
inserting ``or'' at the end.
(c) Effective Date.--The amendments made by this section
shall take effect as if included in the provisions of the
Taxpayer Relief Act of 1997 to which they relate.
SEC. 8. CLERICAL CORRECTIONS.
(a) Subparagraph (C) of section 2(b)(2) is amended by
striking ``subparagraph (C)'' and inserting ``subparagraph
(B)''.
(b) Subparagraph (E) of section 26(b)(2) is amended by
striking ``section 530(d)(3)'' and inserting ``section
530(d)(4)''.
(c)(1) Subclause (II) of section 38(c)(2)(A)(ii) is amended
by striking ``or the New York Liberty Zone business employee
credit or the specified credits'' and inserting ``, the New
York Liberty Zone business employee credit, and the specified
credits''.
(2) Subclause (II) of section 38(c)(3)(A)(ii) is amended by
striking ``or the specified credits'' and inserting ``and the
specified credits''.
(3) Subparagraph (B) of section 38(c)(4) is amended--
(A) by striking ``includes'' and inserting ``means'', and
(B) by inserting ``and'' at the end of clause (i).
(d)(1) Subparagraph (A) of section 39(a)(1) is amended by
striking ``each of the 1 taxable years'' and by inserting
``the taxable year''.
(2) Subparagraph (B) of section 39(a)(3) is amended to read
as follows:
``(B) paragraph (1) shall be applied by substituting `each
of the 5 taxable years' for `the taxable year' in
subparagraph (A) thereof, and''.
(e) Paragraph (5) of section 43(c) is amended to read as
follows:
``(5) Alaska natural gas.--For purposes of paragraph
(1)(D)--
``(A) In general.--The term `Alaska natural gas' means
natural gas entering the Alaska natural gas pipeline (as
defined in section 168(i)(16) (determined without regard to
subparagraph (B) thereof)) which is produced from a well--
``(i) located in the area of the State of Alaska lying
north of 64 degrees North latitude, determined by excluding
the area of the Alaska National Wildlife Refuge (including
the continental shelf thereof within the meaning of section
638(1)), and
``(ii) pursuant to the applicable State and Federal
pollution prevention, control, and permit requirements from
such area (including the continental shelf thereof within the
meaning of section 638(1)).
``(B) Natural gas.--The term `natural gas' has the meaning
given such term by section 613A(e)(2).''.
(f) Paragraph (2) of section 45I(a) is amended by striking
``qualified credit oil production'' and inserting ``qualified
crude oil production''.
(g) Subparagraph (E) of section 50(a)(2) is amended by
striking ``section 48(a)(5)'' and inserting ``section
48(b)''.
(h)(1) Subsection (a) of section 62 is amended--
(A) by redesignating paragraph (19) (relating to costs
involving discrimination suits, etc.), as added by section
703 of the American Jobs Creation Act of 2004, as paragraph
(20), and
(B) by moving such paragraph after paragraph (19) (relating
to health savings accounts).
(2) Subsection (e) of section 62 is amended by striking
``subsection (a)(19)'' and inserting ``subsection (a)(20)''.
(i) Paragraph (3) of section 167(f) is amended by striking
``section 197(e)(7)'' and inserting ``section 197(e)(6)''.
(j) Subparagraph (D) of section 168(i)(15) is amended by
striking ``This paragraph shall not apply to'' and inserting
``Such term shall not include''.
(k) Paragraph (2) of section 221(d) is amended by striking
``this Act'' and inserting ``the Taxpayer Relief Act of
1997''.
(l) Paragraph (8) of section 318(b) is amended by striking
``section 6038(d)(2)'' and inserting ``section 6038(e)(2)''.
(m) Subparagraph (B) of section 332(d)(1) is amended by
striking ``distribution to which section 301 applies'' and
inserting ``distribution of property to which section 301
applies''.
(n) Paragraph (1) of section 415(l) is amended by striking
``individual medical account'' and inserting ``individual
medical benefit account''.
(o) The matter following clause (iv) of section
415(n)(3)(C) is amended by striking ``clauses'' and inserting
``clause''.
(p) Paragraph (12) of section 501(c) is amended--
(1) by striking ``subparagraph (C)(iii)'' in subparagraph
(F) and inserting ``subparagraph (C)(iv)'', and
(2) by striking ``subparagraph (C)(iv)'' in subparagraph
(G) and inserting ``subparagraph (C)(v)''.
(q) Clause (ii) of section 501(c)(22)(B) is amended by
striking ``clause (ii) of paragraph (21)(B)'' and inserting
``clause (ii) of paragraph (21)(D)''.
(r) Paragraph (1) of section 512(b) is amended by striking
``section 512(a)(5)'' and inserting ``subsection (a)(5)''.
(s)(1) Subsection (b) of section 512 is amended--
(A) by redesignating paragraph (18) (relating to the
treatment of gain or loss on sale or exchange of certain
brownfield sites), as added by section 702 of the American
Jobs Creation Act of 2004, as paragraph (19), and
[[Page S8678]]
(B) by moving such paragraph to the end of such subsection.
(2) Subparagraph (E) of section 514(b)(1) is amended by
striking ``section 512(b)(18)'' and inserting ``section
512(b)(19)''.
(t)(1) Subsection (b) of section 530 is amended by striking
paragraph (3) and by redesignating paragraphs (4) and (5) as
paragraphs (3) and (4), respectively.
(2) Clause (ii) of section 530(b)(2)(A) is amended by
striking ``paragraph (4)'' and inserting ``paragraph (3)''.
(u) Section 881(e)(1)(C) is amended by inserting
``interest-related dividend received by a controlled foreign
corporation'' after ``shall apply to any''.
(v) Clause (i) of section 954(c)(1)(C) is amended by
striking ``paragraph (4)(A)'' and inserting ``paragraph
(5)(A)''.
(w) Subparagraph (F) of section 954(c)(1) is amended by
striking ``Net income from notional principal contracts.''
after ``Income from notional principal contracts.--''.
(x) Paragraph (23) of section 1016(a) is amended by
striking ``1045(b)(4)'' and inserting ``1045(b)(3)''.
(y) Paragraph (1) of section 1256(f) is amended by striking
``subsection (e)(2)(C)'' and inserting ``subsection (e)(2)''.
(z) The matter preceding clause (i) of section
1031(h)(2)(B) is amended by striking ``subparagraph'' and
inserting ``subparagraphs''.
(aa) Paragraphs (1) and (2) of section 1375(d) are each
amended by striking ``subchapter C'' and inserting
``accumulated''.
(bb) Each of the following provisions are amended by
striking ``General Accounting Office'' each place it appears
therein and inserting ``Government Accountability Office'':
(1) Clause (ii) of section 1400E(c)(4)(A).
(2) Paragraph (1) of section 6050M(b).
(3) Subparagraphs (A), (B)(i), and (B)(ii) of section
6103(i)(8).
(4) Paragraphs (3)(C)(i), (4), (5), and (6)(B) of section
6103(p).
(5) Subsection (e) of section 8021.
(cc)(1) Clause (ii) of section 1400L(b)(2)(C) is amended by
striking ``section 168(k)(2)(C)(i)'' and inserting ``section
168(k)(2)(D)(i)''.
(2) Clause (iv) of section 1400L(b)(2)(C) is amended by
striking ``section 168(k)(2)(C)(iii)'' and inserting
``section 168(k)(2)(D)(iii)''.
(3) Subparagraph (D) of section 1400L(b)(2) is amended by
striking ``section 168(k)(2)(D)'' and inserting ``section
168(k)(2)(E)''.
(4) Subparagraph (E) of section 1400L(b)(2) is amended by
striking ``section 168(k)(2)(F)'' and inserting ``section
168(k)(2)(G)''.
(5) Paragraph (5) of section 1400L(c) is amended by
striking ``section 168(k)(2)(C)(iii)'' and inserting
``section 168(k)(2)(D)(iii)''.
(dd) Section 3401 is amended by redesignating subsection
(h) as subsection (g).
(ee) Paragraph (2) of section 4161(a) is amended to read as
follows:
``(2) 3 percent rate of tax for electric outboard motors.--
In the case of an electric outboard motor, paragraph (1)
shall be applied by substituting `3 percent' for `10
percent'.''.
(ff) Subparagraph (C) of section 4261(e)(4) is amended by
striking ``imposed subsection (b)'' and inserting ``imposed
by subsection (b)''.
(gg) Subsection (a) of section 4980D is amended by striking
``plans'' and inserting ``plan''.
(hh) The matter following clause (iii) of section
6045(e)(5)(A) is amended by striking ``for `$250,000'.'' and
all that follows through ``to the Treasury.'' and inserting
``for `$250,000'. The Secretary may by regulation increase
the dollar amounts under this subparagraph if the Secretary
determines that such an increase will not materially reduce
revenues to the Treasury.''.
(ii) Subsection (p) of section 6103 is amended--
(1) by striking so much of paragraph (4) as precedes
subparagraph (A) and inserting the following:
``(4) Safeguards.--Any Federal agency described in
subsection (h)(2), (h)(5), (i)(1), (2), (3), (5), or (7),
(j)(1), (2), or (5), (k)(8), (l)(1), (2), (3), (5), (10),
(11), (13), (14), or (17) or (o)(1), the Government
Accountability Office, the Congressional Budget Office, or
any agency, body, or commission described in subsection (d),
(i)(3)(B)(i) or 7(A)(ii), or (l)(6), (7), (8), (9), (12),
(15), or (16) or any other person described in subsection
(l)(16), (18), (19), or (20) shall, as a condition for
receiving returns or return information--'',
(2) by amending paragraph (4)(F)(i) to read as follows:
``(i) in the case of an agency, body, or commission
described in subsection (d), (i)(3)(B)(i), or (l)(6), (7),
(8), (9), or (16), or any other person described in
subsection (l)(16), (18), (19), or (20) return to the
Secretary such returns or return information (along with any
copies made therefrom) or make such returns or return
information undisclosable in any manner and furnish a written
report to the Secretary describing such manner,'', and
(3) by striking the first full sentence in the matter
following subparagraph (F) of paragraph (4) and inserting the
following: ``If the Secretary determines that any such
agency, body, or commission, including an agency or any other
person described in subsection (l)(16), (18), (19), or (20),
or the Government Accountability Office or the Congressional
Budget Office, has failed to, or does not, meet the
requirements of this paragraph, he may, after any proceedings
for review established under paragraph (7), take such actions
as are necessary to ensure such requirements are met,
including refusing to disclose returns or return information
to such agency, body, or commission, including an agency or
any other person described in subsection (l)(16), (18), (19),
or (20), or the Government Accountability Office or the
Congressional Budget Office, until he determines that such
requirements have been or will be met.''.
(jj) Clause (ii) of section 6111(b)(1)(A) is amended by
striking ``advice or assistance'' and inserting ``aid,
assistance, or advice''.
(kk) Section 6427 is amended by striking subsection (o) and
by redesignating subsection (p) as subsection (o).
(ll) Paragraph (3) of section 6662(d) is amended by
striking ``the'' before ``1 or more''.
SEC. 9. OTHER CORRECTIONS RELATED TO THE AMERICAN JOBS
CREATION ACT OF 2004.
(a) Amendments Related to Section 233 of the Act.--
(1) Clause (vi) of section 1361(c)(2)(A) is amended--
(A) by inserting ``or a depository institution holding
company (as defined in section 3(w)(1) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(w)(1))'' after ``a bank (as
defined in section 581)'', and
(B) by inserting ``or company'' after ``such bank''.
(2) Paragraph (16) of section 4975(d) is amended--
(A) in subparagraph (A), by inserting ``or a depository
institution holding company (as defined in section 3(w)(1) of
the Federal Deposit Insurance Act (12 U.S.C. 1813(w)(1))''
after ``a bank (as defined in section 581)'', and
(B) in subparagraph (C), by inserting ``or company'' after
``such bank''.
(b) Amendment Related to Section 237 of the Act.--
Subparagraph (F) of section 1362(d)(3) is amended by striking
``a bank holding company'' and all that follows through
``section 2(p) of such Act)'' and inserting ``a depository
institution holding company (as defined in section 3(w)(1) of
the Federal Deposit Insurance Act (12 U.S.C. 1813(w)(1))''.
(c) Amendments Related to Section 239 of the Act.--
Paragraph (3) of section 1361(b) is amended--
(1) in subparagraph (A), by striking ``and in the case of
information returns required under part III of subchapter A
of chapter 61'', and
(2) by adding at the end the following new subparagraph:
``(E) Information returns.--Except to the extent provided
by the Secretary, this paragraph shall not apply to
information returns made by a qualified subchapter S
subsidiary under part III of subchapter A of chapter 61.''.
(d) Effective Date.--The amendments made by this section
shall take effect as if included in the provisions of the
American Jobs Creation Act of 2004 to which they relate.
______
By Mr. DURBIN (for himself and Mrs. Boxer):
S. 1448. A bill to improve the treatment provided to veterans
suffering from post-traumatic stress disorder; to the Committee on
Veterans' Affairs.
Mr. DURBIN. Mr. President, seventy-five years ago today, President
Herbert Hoover created the Veterans Administration by signing Executive
Order 5398 for the ``Consolidation and Coordination of Governmental
Activities Affecting Veterans.''
Of course, the commitment of America to the care and welfare of the
Nation's veterans goes back to the earliest days of our Republic. In
1789 George Washington said, ``The willingness with which our young
people are likely to serve in any war, no matter how justified, shall
be directly proportional as to how they perceive the Veterans of
earlier wars were treated and appreciated by their country.''
The care of veterans was a central theme in Abraham Lincoln's second
inaugural address. He said, ``With malice toward none; with charity for
all; with firmness in the right, as God gives us to see the right, let
us strive on to finish the work we are in; to bind up the nation's
wounds; to care for him who shall have borne the battle, and for his
widow, and his orphan--to do all which may achieve and cherish a just,
and a lasting peace, among ourselves, and with all nations.''
Today, this important work of caring for our veterans is carried on
by the Department of Veterans Affairs at a time when American troops
are engaged in combat under very trying circumstances overseas.
In order to address the clearly emerging needs of the newest
veterans, I am today introducing the ``Post-Traumatic Stress Disorder
Treatment Improvement Act.''
This bill requires the Department of Veterans Affairs to hire the
number of mental health professionals which the Department's own
internal panel of experts has for years recommended as that required to
provide an appropriate
[[Page S8679]]
level of treatment for veterans suffering from post-traumatic stress
disorder or PTSD.
PTSD is a fairly new term but it is by no means a new problem. People
exposed to extremely traumatic stressful events can suffer lasting and
long-term mental health problems as a result. Soldiers who have endured
the horrors--of the battlefield--who've experienced and had to
participate in deeply troubling events--have long been susceptible to
this problem. Among Civil War veterans it was called ``the soldier's
heart.'' Among World War I veterans it was called ``shell shock.'' In
World War II it was called ``battle fatigue.'' Many people will
remember the incident during World War II in which General George
Patton slapped a soldier hospitalized with battle fatigue. The American
public reacted angrily to Patton's action because they understood that
Patton was wrong; needing medical treatment to help recover from the
psychological trauma of war was not any sign of weakness or cowardice
but rather simply one of the understandable hazards of the very violent
modern battlefield. In the aftermath of Vietnam, our understanding of
what is today known as post-traumatic stress disorder or PTSD has grown
tremendously and so has our ability to treat it. Today, as a result of
its work with Vietnam Veterans, the Department of Veterans Affairs is
the world leader in diagnosing and treating PTSD.
While the quality of the expertise in the VA is high, we need to
improve the quantity. The Department of Veterans Affairs needs more
mental health professionals to meet the needs of the coming influx of
new veterans from Iraq and Afghanistan.
Two articles in the July 2004 issue of the New England Journal of
Medicine indicate that the nature of the war in Iraq is producing a new
generation of American veterans who will require treatment for PTSD.
The data gathered from recently returned troops suggests that about 1
in 6 of our Iraq veterans will develop this serious problem. One of the
articles cautions that the actual numbers will probably be even higher
because the data of the reported study was collected from soldiers and
marines who served in the theater before the Iraqi insurgency rose to
its current level of intensity. The conditions are now made even more
stressful by the hidden enemy, frequently concealed among civilians and
attacking suddenly with roadside explosions and suicide bombers. The
uncertainly, the shock, the blood and destruction of this type of
warfare understandably takes a toll on the feelings of even the
toughest of our warriors. We know from experience that roughly 30
percent of Vietnam veterans suffered from PTSD sometime in their
lifetime.
Senators don't have to read the New England Journal of Medicine to
know that our returning veterans will need a little help to overcome
some terrible memories and troubling mental images. We can hear it from
the veterans in our own States.
Several weeks ago I traveled across my State of Illinois to five
different locations for roundtable discussions about this subject. I
invited veterans as well as medical counselors from the Veterans'
Administration to tell me about former service members who were trying
to come to grips with this torment in their minds over what they had
been through and what they had seen. I was nothing short of amazed at
what happened. At every single stop, these men and women came forward
and sat at tables before groups in their communities, before the media,
and told their stories of being trained to serve this country, being
proud to serve, and going into battle situations which caused an impact
on their mind they never could have imagined. They talked about coming
home with their minds in this turmoil over the things they had done and
seen. Many of them told of having to wait months and, in one case, a
year before they could see a doctor at a VA hospital.
I heard from veterans from Iraq, Vietnam, Korea and World War II. One
veteran in southern Illinois who was in the Philippines couldn't come
to my meeting because ``I just can't face talking about it.'' This was
60 years after his experience. Veterans of Vietnam, coming home, facing
animosity from others, then being unable to address their emotional and
psychological anguish and difficulty because they were afraid to even
acknowledge they were veterans. They were left tormented by this for
decades.
The ones that gripped my heart the most were the Iraqi veterans. I
will never forget these men and women. The one I sat next to at
Collinsville, a bright, handsome, young Marine, talked about going into
Fallujah with his unit and how his point man was riddled with bullets,
and he had to carry the parts of his body out of that street into some
side corner where the remains could be evacuated. Then he took over his
friend's job as point man and went forward. A rocket-propelled grenade
was shot at him, and it bounced off his helmet. One of the insurgents
came up and shot him twice in the chest. This happened just this past
November.
When he came home, he said he couldn't understand who he was because
of what he had seen and been involved in. He had problems with his
wife--difficult, violent problems, and he turned to the VA for help.
I said to this young Marine: I am almost afraid to ask you this, but
how old are you? He said, ``I am 19.''
Think of what he has been through. Thank goodness he is in the hands
of counselors. Thank goodness he is getting some help and moving in the
right direction.
But in another meeting in southern Illinois, another soldier said, in
front of the group, ``As part of this battle, I killed children, women.
I killed old people. I am trying to come to grips with this in my mind
as I try to come back into civilian life.''
A young woman, a member of the Illinois National Guard, said when she
returned to the United States, still in distress over what she had seen
and done, she was released from active duty through Fort McCoy in
Wisconsin where the Army sat her down and asked, ``Any problems?'' Of
course, that should have been the time for her to come forward and say:
I have serious problems. She didn't. She'd heard that if you said you
had a problem, you had to stay at Fort McCoy for several more months.
She was so desperate to get home she said, ``No problems.''
She came home and finally realized that was not true. She had serious
psychological problems over what she had been through. When she turned
to the VA and asked for help, they said: You can come in and see a
counselor at the VA in a year.
What happens to these veterans, victims of post-traumatic stress
disorder, without counseling at an early stage? Sadly, many of them see
their marriages destroyed. One I met was on his fourth marriage. Many
of them self-medicate with alcohol, sometimes with drugs, desperate to
find some relief from the nightmares they face every night. These are
the real stories of real people, our sons and daughters, our brothers
and sisters, our husbands and wives who go to battle to defend this
country and come home with the promise that we will stand behind them.
So, in addition to the Vietnam, Gulf War and other veterans already
being treated, it is clear that we will soon see large numbers of Iraq
veterans coming to the VA for help with PTSD. What is our capacity to
help them? Unfortunately, it does not look good.
Disturbingly, the Department of Veterans Affairs may lack the
capacity to treat those with PTSD. The Government Accountability Office
recently concluded, and the Department of Veterans Affairs concurred,
that the Department has not kept adequate accounting of the numbers of
patients it currently treats for PTSD. Without any reliable numbers of
patients currently receiving treatment, the VA cannot deliver to us any
assurance about having the facilities or staff needed to treat the
coming influx of new veterans.
The VA has demonstrated an inability to forecast the number of
patients it must be ready to treat. In three of the past four years,
the Department of Veterans Affairs has submitted budget requests that
included patient estimates which turned out to be too low in four
different areas. In three of the past four years, the VA has
underestimated its number of acute hospital care patients, the number
of medical visits, the dependents and survivors' hospital census, and
the numbers of dependent and survivor outpatients that it would see.
[[Page S8680]]
Now, just a couple of weeks ago, the VA had to acknowledge that its
budget for the current fiscal year was going to be $1 billion short
because they got their estimate of Iraq veteran patients wrong. The VA
had forecasted a 2.3 percent growth in healthcare demand this year but
the actual increase turned out to be 5.2 percent--more than twice the
VA estimate. The VA budget assumed that 23,553 VA patients would be
veterans of the Global War on Terrorism. The number of these patients
in 2005 is now estimated to be 103,000--more than four times what VA
had estimated.
In the absence of reliable patient information and patient estimates
from the Department of Veterans Affairs, how can we know that the VA
healthcare system lacks the capability to treat the incoming number of
veterans needing PTSD treatment? That's easy--we can simply listen to
the VA medical professionals who provide the treatment.
In the course of conducting its investigation, the Government
Accountability Office asked officials at VA facilities if they would be
able to meet this coming demand. The answer they received was very
disturbing. Fully six out of these seven VA healthcare officials stated
that their facilities may be unable to handle the influx of new
veterans needing PTSD treatment. Six out of seven!
In addition, another set of internal VA mental health professionals
has repeatedly recommended that VA expand its capability to treat PTSD.
The Department's own Special Committee on Post-Traumatic Stress
Disorder has issued a long list of recommended improvements. When the
Government Accountability Office studied the progress on implementing
these expert recommendations, it found that the Department of Veterans
Affairs hadn't fully implemented any of them.
Enough is enough!
When the VA fails to count its current PTSD patients; when the VA
consistently underestimates its number of future patients; when the VA
ignores the improvement recommendations of its own internal mental
health professionals it is time for Congress to step in, demonstrate
the leadership that is required, and take action to provide the
treatment capability that our veterans deserve.
The bill I am introducing today accomplishes this by requiring the
Department of Veterans Affairs to implement three of the key treatment
improvement recommendations made by the Department's own Special
Committee on Post-Traumatic Stress Disorder.
The bill requires the Secretary of Veterans Affairs to do three
things. First, it requires the Secretary to establish a Post-Traumatic
Stress Disorder Clinical Team at every Medical Center within the
Department of Veterans Affairs. Second, it requires the Secretary to
provide a certified family therapist within each Vet Center. Finally,
the bill requires the appointment of a regional PTSD Coordinator within
each Veteran Integrated Service Network (VISN) and Readjustment
Counseling Service region to evaluate programs, promote best practices
and make resource recommendations.
Let me explain the importance of these three provisions.
The majority of the major VA hospitals already have a clinical team
of mental health experts focused on providing treatment for post-
traumatic stress disorder. These teams include psychiatrists,
psychologists, and psychotherapists who bring their varied skills
together. However, approximately 60 of our VA hospitals currently do
not have a PTSD clinical team. This bill requires that these teams be
established.
Nationwide, the Department of Veterans Affairs operates 207 ``Vet
Centers.'' The community-based, informal atmosphere of these centers
has proven to be a highly effective way to provide counseling and other
services to veterans who might not want or be able to go to a formal VA
hospital for help. The Special Committee has recognized the importance
of family relationships in helping veterans deal with their PTSD and
has recommended that there be a certified marriage and family therapist
at each Vet Center.
Currently only 17 centers have these specialists on staff. This bill
helps keep families strong for our veterans by adding 190 family
therapists to Vet Centers nationwide.
Finally, the bill ensures that PTSD treatment capability gets the
attention and management needed to keep it strong by requiring the
appointment of PTSD coordinators at the regional level.
Altogether, this bill will add about 400 mental health professionals
to the Department of Veterans Affairs' capability to treat those of our
veterans whose wounds are not visible, whose thoughts are continually
troubled by the horrors of war, who need just a little help to get past
the nightmares and get their life back on track.
Even the toughest of warriors can have troubled feelings following
the stress of combat. It is no sign of weakness--it is no sign of
failure to ask for a little help in getting past some of those
feelings. That message must be clearly conveyed to all of our veterans.
By acting now, we can ensure that this help is available to our
veterans when they return. This is crucial because the effects of post-
traumatic stress disorder are sometimes left undiagnosed and untreated
for years. If we delay, we virtually guarantee a future shortage of
treatment capability and, in so doing, we lay the groundwork for the
plague of drug abuse, domestic violence, homelessness, unemployment and
even suicide that so often is the result of post-traumatic stress
disorder which is left untreated.
America's newest generation of young veterans certainly deserve
better than that!
We in the Congress can step up and require that the Department of
Veterans Affairs hire a full staff of mental health professionals that
can help our veterans to move past the psychological trauma of war and
to lead healthy, happy and productive lives.
I encourage my colleagues to join me in supporting our returning
veterans by supporting the Post-Traumatic Stress Disorder Treatment
Improvement Act.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 1448
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Post-Traumatic Stress
Disorder Treatment Improvement Act''.
SEC. 2. IMPROVED TREATMENT OF POST-TRAUMATIC STRESS DISORDER.
(a) In General.--Not later than 120 days after the date of
the enactment of this Act, the Secretary of Veterans Affairs
shall--
(1) establish a post-traumatic stress disorder clinical
team at every Medical Center of the Department of Veterans
Affairs;
(2) provide a certified family therapist for each Vet
Center of the Department of Veterans Affairs; and
(3) appoint a post-traumatic stress disorder coordinator
within each Veteran Integrated Service Network and within
each Readjustment Counseling Service Region.
(b) Duties of PTSD Coordinator.--Each coordinator appointed
for a network or region under subsection (a)(3) shall--
(1) evaluate post-traumatic stress disorder and family
therapy treatment programs within the network or region;
(2) identify and disseminate best practices on evaluation
and treatment of post-traumatic stress disorder, and on
family therapy treatment, within the network or region and to
other networks and regions; and
(3) recommend the resource allocation necessary to meet
post-traumatic stress disorder and family therapy treatment
needs within the network or region.
(c) Waiver.--Beginning on the date that is 5 years after
the date of the enactment of this Act, the Secretary of
Veterans Affairs may waive any requirement of this Act for
the fiscal year beginning after that date if the Secretary,
not later than 90 days before the beginning of such fiscal
year, submits to Congress a report--
(1) notifying Congress of the proposed waiver;
(2) explaining why the requirement is not necessary; and
(3) describing how post-traumatic stress disorder services
and family therapy services will be provided to all veterans
who may need such services.
______
By Mr. SHELBY:
S. 1461. A bill to establish procedures for the protection of
consumers from misuse of, and unauthorized access to, sensitive
personal information contained in private information files maintained
by commercial entities engaged in, or affecting, interstate commerce,
provide for enforcement of those procedures by the Federal Trade
Commission, and for other purposes; to the Committee on Banking,
Housing, and Urban Affairs.
[[Page S8681]]
Mr. SHELBY. Mr. President, I rise today to introduce the Consumer
Identity Protection and Security Act. This legislation provides
consumers the ability to place credit freezes on their credit reports.
My sole intent in introducing this legislation is to address a
jurisdictional question that has recently arisen with respect to the
Fair Credit Reporting Act. I want to make sure that the referral
precedent with respect to legislation that amends the Fair Credit
Reporting Act, or touches upon the substance covered by that Act, is
entirely clear. I believe the Parliamentarian's decision to refer this
bill to the Senate Banking Committee establishes that there is no
question in this regard and that this subject matter is definitively
and singularly in the jurisdiction of the Senate Banking Committee.
______
By Mr. BROWNBACK (for himself, Mr. Corzine, Mr. DeWine, Mr.
Durbin, Mr. Coburn, Mr. Lautenberg, Mr. Schumer, Mr. Bingaman,
Mr. Coleman, Mr. Talent, Mr. Salazar, Mrs. Dole, and Mr. Bayh):
S. 1462. A bill to promote peace and accountability in Sudan, and for
other purposes; to the Committee on Foreign Relations.
Mr. BROWNBACK. Mr. President, I rise with my colleague Senator
Corzine and 11 other cosponsors to introduce the Darfur Peace and
Accountability Act of 2005. I applaud Senator Corzine for his tireless
work on this issue--he has traveled on several occasions to Sudan, and
was instrumental in moving the U.S. to declare the atrocities genocide.
In addition, there is a strong bipartisan coalition forming to address
one of the greatest moral issues that faces our world today.
I wish to thank many of my colleagues for their support for the
Darfur Accountability Act that was introduced in March and passed
unanimously by this body as an amendment to the Emergency Supplemental.
Unfortunately, that provision was stripped in conference.
Since that time, several relevant U.N. Security Council resolutions
have been passed, NATO has committed to assisting the African Union
Mission in Sudan (AMIS), and the National Unity Government of Sudan was
established just two weeks ago on July 9, following the Comprehensive
Peace Agreement between the North and the South. While we applaud the
recent peace agreement ending the longest civil war in Africa, we pause
with great concern that genocide continues in Darfur. There can be no
comprehensive peace in Sudan until the crisis in Darfur has been
resolved.
Just today news reports were swarming about the Sudanese officials
who manhandled Secretary Rice's staff and reporters during their
meeting with President Bashir. When a U.S. reporter asked a question
about the killing of innocent civilians, she was taken by the arm and
promptly removed from the meeting.
It is unfortunate that the ``international incident'' not being
reported is about the hundreds of thousands of lives lost, or the 2
million refugees who live day to day on inadequate portions of food and
very little clean water.
In remarks prior to the G-8 summit on June 30, 2005, President Bush
declared, ``the violence in Darfur is clearly genocide,'' and ``the
human cost is beyond calculation.''
While momentum for international support to end this crisis has been
building, the violence and humanitarian crisis continues. Rape is still
being used as weapon against women. Some women who have become pregnant
due to brutal rape, have been forced to abort their babies and other
women have been imprisoned for bearing illegitimate children. In
addition, the government seems to be prepared to raze the Kalma refugee
camp of 120,000 people against their wishes, sending them back into
areas where there is no security against these rapes and killings.
I remind my colleagues that it was one year ago, on July 22, we stood
together in Congress to denounce the atrocities in Darfur as genocide.
Twelve long months later is not the time to start thinking about easing
sanctions or restoring certain diplomatic ties, rather it is time to
address the needs of the African Union and it is time to sanction those
responsible for genocide.
That is why we are joining with colleagues in the House to introduce
new bipartisan legislation called the Darfur Peace and Accountability
act of 2005. This bill increases pressure on Khartoum, provides greater
support to the African Union mission in Darfur to help protect
civilians, imposes sanctions on individuals responsible for atrocities,
and encourages the appointment of a U.S. special envoy to help advance
a peace process for Darfur. I applaud our colleagues in the House,
including Congressmen Hyde, Tancredo, Payne, Wolf, Smith and others,
who have diligently worked with us to ensure a strong piece of
legislation that we hope will move quickly and be enacted so that we
may provide further relief to the suffering victims.
I urge my colleagues to support this very important piece of
legislation. For the first time in history we publicly speak of
genocide while it is underway, yet we have broken our promise of
``Never Again.'' We can no longer be indifferent to the suffering
Africans of Darfur. We have got to move beyond partisan politics, and
agree on the fundamentals that will help save lives immediately.
Mr. CORZINE. Mr. President, I rise today to introduce the Darfur
Peace and Accountability Act. This bill, which is the latest version of
legislation Senator Brownback and I have been pushing for almost six
months, will provide the tools and authorizations and put forth the
policies necessary to stop the genocide in Darfur. This bill also has
support in the House, where it has been introduced by Representatives
Hyde, Payne and others.
Sudan is in the news today because of Secretary Rice's trip, and
because of the rough treatment her entourage has received. But let's
not lose sight of what has happened in Sudan over the last two years,
and what is still happening. 2 million Darfurian civilians have been
displaced from their homes. 1.8 million have been forced into camps in
Darfur. There are 200,000 Darfur refugees in Chad. Hundreds of
thousands have died, with some estimates up to 400,000. The Government
of Sudan and the janjaweed militias it supports are responsible for
systematic, targeted and premeditated violence, including murder and
rape.
It was one year ago tomorrow that the Senate recognized these
atrocities as genocide. One long, horrible, violent, tragic year for
the people of Darfur.
We can stop this genocide, and we know how to do it. It just takes
the will.
Three months ago, the Senate passed the Darfur Accountability Act as
an amendment to the Supplemental Appropriations bill. Despite
overwhelming bipartisan support, it was stripped out in conference.
Meanwhile, the genocide continued and now we are forced to revisit many
of the same issues.
First, it is time we put real pressure on the Government of Sudan.
While I welcome Secretary Rice's trip to Sudan, and Deputy Secretary
Zoellick's two trips, diplomacy only goes so far. When the world
threatens sanctions, Khartoum moderates its behavior. This bill calls
for a UN Security Council resolution to impose real sanctions on the
Government of Sudan.
Second, we need boots on the ground. When I visited Darfur in August
last year, there were only a couple hundred African Union troops on the
ground. There are not more than 3,000. But this number is far from
adequate to patrol a region the size of Texas. There are over 50,000
police officers in Texas, yet we are still struggling to deploy 7,000
AU soldiers in Darfur, where genocide and civil war are raging, and
where transportation and communications are limited.
The AU has been effective where it is deployed and I applaud the AU's
leadership on this issue. But we have to be realistic about what they
are up against. They need an explicit mandate to protect civilians and
they need much more support.
It also requires that, 30 days after we learn the names of those the
UN has identified as having committed atrocities, the President report
to Congress on whether he is sanctioning those people and the reasons
for his decision.
This is not about the past. Those who have committed genocide are
still
[[Page S8682]]
doing so. While we debate this legislation, brutal killers continue to
terrorize the people of Darfur with impunity. They must be named, they
must be sanctioned, and they must be brought to justice.
Fifth, we need a Special Presidential Envoy. Secretary Rice and
Deputy Secretary Zoellick simply cannot devote themselves full time to
this crisis.
A high-profile envoy will make sustain the pressure on the
Government, get the UN Security Council to act, keep tract of what the
African Union really needs to be effective and accelerate NATO
involvement, and make sure that peace talks with the Darfur rebels
don't drift. A Special Envoy will be able to visit all of Darfur, not
just the camps that have been cleaned up for visiting VIPs. And a
Special Envoy will be able to address related problems, from northern
Uganda to Sudan's troubled East.
We can do all of this. We just need the political will But, that has
always been the problem. From Cambodia to the Balkans to Rwanda, we
failed to act or acted too late. And this time, we can't even claim not
to know what is happening. We know all too well.
We can't claim that we haven't had the time to act. It's been a year
since we declared the atrocities in Darfur to be genocide. We can't
claim that we are not responsible. What greater responsibility can
there be than to stop a genocide?
We're out of excuses, and we're out of time. I hope this bipartisan
bill and its House counterpart are quickly passed. I urge my colleagues
to support this bill.
______
By Mr. KERRY:
S. 1463. A bill to clarify that the Small Business Administration has
authority to provide emergency assistance to non-farm-related small
business concerns that have suffered substantial economic harm from
drought; to the Committee on Small Business and Entrepreneurship.
Mr. KERRY. Mr. President, drought continues to be a serious problem
for many States in this country, and I rise to re-introduce legislation
to help small businesses that need disaster assistance but can't get it
through the Small Business Administration's disaster loan program.
You see, the SBA doesn't treat all drought victims the same. The
Agency only helps those small businesses whose income is tied to
farming and agriculture. However, farmers and ranchers are not the only
small business owners whose livelihoods are at risk when drought hits
their communities. The impact can be just as devastating to the owners
of rafting businesses, marinas, and bait and tackle shops. Sadly, these
small businesses cannot get help through the SBA's disaster loan
program because of something taxpayers hate about government--
buraucracy.
The SBA denies these businesses access to disaster loans because its
lawyers say drought is not a sudden event and therefore it is not a
disaster by definition. However, contrary to the Agency's position that
drought is not a disaster, in July of 2002, when this Act was
originally introduced, the SBA had in effect drought disaster
declarations in 36 States. As of July 2005, 11 States remain declared
drought disasters and 19 States are suffering from severe to extreme
drought conditions. Adding insult to injury, in those States where the
Agency declares drought disaster, it limits assistance to only farm-
related small businesses. Take, for instance, South Carolina. A couple
of years ago that entire State had been declared a disaster by the SBA,
but the Administration would not help all drought victims. Let met read
to you from the declaration:
Small businesses located in all 46 counties may apply for
economic injury disaster loan assistance through the SBA.
These are working capital loans to help the business continue
to meet its obligations until the business returns to normal
conditions. . . . Only small, non-farm agriculture dependent
and small agricultural cooperative are eligible to apply for
assistance. Nurseries are also eligible for economic injury
caused by drought conditions.
The SBA has the authority to help all small businesses hurt by
drought in declared disaster areas, but the Agency won't do it. For
years the Agency has been applying the law unfairly, helping some and
not others, and it is out of compliance with the law. The Small
Business Drought Relief Act of 2005 would force SBA to comply with
existing law, restoring fairness to an unfair system, and get help to
small business drought victims that need it.
Time is of the essence for drought victims, and I am hopeful that
Congress will consider passing this legislation soon. This Act has been
thoroughly reviewed, passing the committee of jurisdiction three times
and the Senate twice, with supporters numbering up to 25, from both
sides of the aisle. In addition to approval by the committee of
jurisdiction, OMB approved virtually identical legislation in 2003. The
bill I am introducing today includes those changes we worked out with
the Administration, and I see no reason for delay.
I thank Senators Snowe and Bond, our current and past chairs, both of
whom have been supportive of this legislation each time it was
introduced and passed.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 1463
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE
This Act may be cited as the as the ``Small Business
Drought Relief Act of 2005''.
SEC. 2. FINDINGS.
Congress finds that--
(1) as of July 2002, when this Act was originally
introduced in the 107th Congress as Senate Bill S. 2734, more
than 36 States (including Massachusetts, Montana, Texas, and
Nevada) had suffered from continuing drought conditions;
(2) as of July 2005, drought continues to be a serious
national problem, with 19 States suffering from severe to
extreme drought conditions;
(3) droughts have a negative effect on State and regional
economies;
(4) many small businesses in the United States sell,
distribute, market, or otherwise engage in commerce related
to water and water sources, such as lakes, rivers, and
streams;
(5) many small businesses in the United States suffer
economic injury from drought conditions, leading to revenue
losses, job layoffs, and bankruptcies;
(6) these small businesses need access to low-interest
loans for business-related purposes, including paying their
bills and making payroll until business returns to normal;
(7) absent a legislative change, the practice of the Small
Business Administration of permitting only agriculture and
agriculture-related businesses to be eligible for Federal
disaster loan assistance as a result of drought conditions
would likely continue;
(8) during the past several years small businesses that
rely on the Great Lakes have suffered economic injury as a
result of lower than average water levels, resulting from low
precipitation and increased evaporation, and there are
concerns that small businesses in other regions could suffer
similar hardships beyond their control and that they should
also be eligible for assistance; and
(9) it is necessary to amend the Small Business Act to
clarify that non-farm-related small businesses that have
suffered economic injury from drought are eligible to receive
financial assistance through Small Business Administration
Economic Injury Disaster Loans.
SEC. 3. DISASTER RELIEF FOR SMALL BUSINESS CONCERNS DAMAGED
BY DROUGHT.
(a) Drought Disaster Authority.--
(1) Definition of disaster.--Section 3(k) of the Small
Business Act (15 U.S.C. 632(k)) is amended--
(A) by inserting ``(1)'' after ``(k)''; and
(B) by adding at the end the following:
``(2) For purposes of section 7(b)(2), the term `disaster'
includes--
``(A) drought; and
``(B) below average water levels in the Great Lakes, or on
any body of water in the United States that supports commerce
by small business concerns.''
(2) Drought disaster relief authority.--Section 7(b)(2) of
the Small Business Act (15 U.S.C. 636(b)(2)) is amended--
(A) by inserting ``(including drought), with respect to
both farm-related and non-farm-related small business
concerns,'' before ``if the Administration''; and
(B) in subparagraph (B), by striking ``the Consolidated
Farmers Home Administration Act of 1961 (7 U.S.C. 1961)'' and
inserting the following: ``section 321 of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1961), in which
case, assistance under this paragraph may be provided to
farm-related and non-farm-related small business concerns,
subject to the other applicable requirements of this
paragraph''.
(b) Limitation on Loans.--From funds otherwise appropriated
for loans under section
7(b) of the Small Business Act (15 U.S.C. 636(b)), not more
than $9,000,000 may be used during each of fiscal years 2005
through 2008, to provide drought disaster loans to non-farm-
related small business concerns in accordance with this Act
and the amendments made by this Act.
[[Page S8683]]
(c) Prompt Response To Disaster Requests.--Section
7(b)(2)(D) of the Small Business Act (15 U.S.C. 636(b)(2)(D))
is amended by striking ``Upon receipt of such certification,
the Administration may'' and inserting ``Not later than 30
days after the date of receipt of such certification by a
Governor of a State, the Administration shall respond in
writing to that Governor on its determination and the reasons
therefore, and may''.
SEC. 4. RULEMAKING.
Not later than 45 days after the date of enactment of this
Act, the Administrator of the Small Business Administration
shall promulgate final rules to carry out this Act and the
amendments made by this Act.
____________________