[Congressional Record Volume 152, Number 108 (Wednesday, September 6, 2006)]
[Senate]
[Pages S9043-S9061]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. INHOFE (for himself and Mr. Coburn):
  S. 3845. A bill to designate the facility of the United States Postal 
Service located at 301 Commerce Street in Commerce, Oklahoma, as the 
``Mickey Mantle Post Office Building''; to the Committee on Homeland 
Security and Governmental Affairs.
  Mr. INHOFE. Mr. President, I rise today along with my colleague, Tom 
Coburn, to proudly introduce legislation to designate the facility of 
the United States Postal Service located at 301 Commerce Street in 
Commerce, OK as the ``Mickey Mantle Post Office.''
  Mickey Mantle emulates the Oklahoma spirit of hard work, charity, and 
sportsmanship. He is a shining example of how commitment and dedication 
can lead to great success. I seek to name the post office in Commerce, 
OK, in Mickey Mantle's honor. He is still known to Commerce by the 
nicknames ``Commerce Comet'' or ``Commerce Kid''.
  At age 4 Mickey Mantle moved with his family to Commerce where he 
grew up, having been born in Spavinaw, OK. By his father who was an 
amateur player and fervent fan, Mickey Mantle was named in honor of 
Mickey Cochrane, the Hall of Fame catcher from the Detroit Tigers.
  Signing with the New York Yankees in 1949, Mantle made his Major 
League Debut in 1951. He played his entire Major League career with the 
Yankees. He was a twenty-time All Star and named American League MVP 
three times. Mantle was a part of 12 pennant winners and 7 World 
Championship clubs. Some of Mantle's records still hold today. He holds 
the record for most World Series home runs (18), runs batted in (40), 
runs (42), walks (43), extra-base hits (26), and total bases (123).
  Mantle announced his retirement on March 1, 1969. He actually retired 
on Mickey Mantle Day, June 8, 1969. In addition to the retirement of 
his uniform number 7, Mantle was given a plaque that would hang on the 
center field wall at Yankee Stadium, near the monuments to Babe Ruth, 
Lou Gehrig and Miller Huggins. In 1974, as soon as he was eligible, he 
was inducted into the Baseball Hall of Fame demonstrating his 
importance to baseball and community.
  Sadly, Mickey Mantle's father died of cancer at the age of 39, just 
as his son was starting his career. Mantle said one of the great 
heartaches of his life was that he never told his father he loved him.
  After a bout with liver cancer himself, Mickey Mantle was given a few 
precious extra weeks of life due to a liver transplant. The baseball 
great was overwhelmed by the selfless gift of a liver from a stranger; 
therefore, Mickey became determined to give something back at the end 
of his life. Thus, in 1995, the year he died, the Mickey Mantle 
Foundation was established to promote organ and tissue donation, and 
Mickey Mantle will be remembered for something more than his heroic 
baseball career.
  I encourage my colleagues to join me in support of this legislation 
as we commemorate an outstanding athlete so that future generations 
will be as inspired by his example of sportsmanship and charity as we 
have been.
                                 ______
                                 
      By Mr. CARPER (for himself and Mr. Voinovich):
  S. 3846. A bill to provide for the establishment and maintenance of 
electronic personal health records for individuals and family members 
enrolled in Federal employee health benefits plans under chapter 89 of 
title 5, United States Code, and for other purposes; to the Committee 
on Homeland Security and Governmental Affairs.
  Mr. CARPER. Mr. President, I rise today to announce the introduction 
of a piece of legislation that Senator Voinovich of Ohio and I have 
worked on for a while. It is called the Federal Employees Electronic 
Personal Health Records Act of 2006. This bill makes available--or 
would make available--electronic personal health records for every 
enrollee of a Federal health benefits plan who wishes to have one. That 
is, potentially, as many as 8 million people. That includes those of us 
who work in Federal agencies, large and small, across the country and, 
actually, around the world. It includes their families and includes 
Federal retirees and their families as well.
  Our health care sector is the most innovative in the world, but it 
has not kept up with the information age. Our excessive reliance on 
paper record keeping makes our health care system less efficient, more 
costly, and more prone to mistakes. Expanding the use of health 
information technology shows promise as a way to improve both the cost 
and the quality of health care in our country.

[[Page S9044]]

  In 2004, the United States spent some $1.9 trillion on health care 
costs.
  That is more than any other industrialized country on this planet. In 
2005, health care premiums continued their upward trend, increasing by 
an average, I am told, of some 9 percent. We are literally spending 
trillions of dollars on health care, but I am sorry to say we are not 
getting the gold standard of treatment or results.
  A 2005 survey conducted by the Commonwealth Fund, a private 
foundation that focuses on improving health care, found that medical 
error reports rates in the United States far exceed those of western 
countries. In that survey, one in three Americans reported getting the 
wrong dosage of medication, incorrect test results, mistakes in 
treatment, or late notification of test results. That is nearly 15 
percent higher than similar results in Britain and Germany.
  I believe some of the problems--though certainly not all of them--can 
be blamed on the fact that health care providers don't have full and 
real-time access to patients' medical records. Doctors in this country 
wait days sometimes for couriers to deliver lab tests or x rays. They 
diagnose patients without knowing their full medical history, what they 
are allergic to, what kinds of surgeries they have had, or whether they 
have complained about similar symptoms before.
  Time constraints, or medical necessity, often force doctors to 
perform a quick diagnosis. Sometimes that diagnosis wrong. Sometimes 
those errors prove to be costly. The widespread use of health 
information technology, the ability to immediately access one's full 
medical history from a computer, can help doctors and nurses provide 
better care less expensively. It has the potential to dramatically 
transform the way we provide health care in America--saving lives, 
saving costs.
  If we are looking for success stories on how health care 
professionals have integrated the use of electronic health care records 
into their daily routines, we don't have to look any further than our 
own Department of Defense and our Department of Veterans Affairs.
  Times have changed since I retired from the Navy some 15 years ago. I 
remember that as an ensign I used to carry my medical health records in 
a brown manila folder from duty station to duty station--from the time 
I left Ohio State, on to Pensacola, Corpus Christi Naval Air Station, 
out to California, across the seas and back again, and, finally, 
getting off of active duty and coming to Delaware to enroll in graduate 
school, on the GI bill, at the University of Delaware in the business 
school. I went up the road to the VA hospital. I still had my folder 
with the records. I turned them in and asked: What kind of benefits am 
I eligible for?
  Over a decade ago, the Department of Defense and VA decided there was 
a better way, and the results have been nothing short of phenomenal. 
Today, when a patient enrolls in the Department of Defense's military 
health system, they no longer need the kind of brown manila folder I 
carried all those years. Instead, we have electronic health care 
records to keep track of the medical histories of those who serve our 
country in the military. This health record is managed electronically, 
and you don't have to remember to pack it up on your next tour of duty, 
whether it is in Southeast Asia, or Iraq, or Afghanistan.
  Instead, one's electronic health care record follows them wherever 
they go--both during the time they are in the military and when they 
leave and join our veterans community as a veteran.
  The result is that the Department of Defense and VA have been 
impressive, especially when you consider that they have only used these 
electronic health records for about a decade or so.
  The VA health system has transformed itself from a troubled, 
sometimes bloated and inefficient operation to one of the best health 
care operations in the country.
  Researchers and doctors now laud the VA for having the foresight to 
use electronic health records to improve patient care.
  What is the cost? That is a good question. It is about $78 per 
patient. That is roughly the cost of not repeating one blood test. In 
other words, it is money well spent.
  The VA now regularly outperforms Medicare and other private health 
plans when it comes to providing patient care for diabetes, high blood 
pressure, and heart attack victims.
  In January, the National Quality Research Center concluded that for 
the sixth consecutive year, the VA health care system outranks the 
private sector for customer satisfaction.
  I have witnessed that new-found satisfaction in my own backyard, at 
the Veterans Medical Center in Elsmere, DE. That is the place I went in 
1973 fresh out of the Navy. Veterans from neighboring States are now 
coming to our hospital in Elsmere to seek care instead of going to 
regular civilian hospitals near them.
  In 2004, the Elsmere facility, as well as popular satellite clinics 
in Millsboro and Seaford, DE, served more than 22,000 veterans and had 
more than 150,000 outpatient visits. Both totals are about 20 percent 
higher than just 4 years ago.

  Normally, you would think the busier a hospital is, the less 
satisfied customers are because of longer waits and other hassles. But 
it turned out that the opposite is true. As the workload has climbed, 
so has patient satisfaction. I might add, so has the satisfaction of 
those providing the care to the patients.
  More than 85 percent of Delaware's VA outpatients said they were 
``highly satisfied'' with the care they received. Planning is now 
underway to open a third outpatient clinic for veterans in Kent County 
next spring--probably in Dover where we have another 15,000 veterans.
  What is keeping the rest of our Nation's health care system from 
following the lead of the Department of Defense and the VA? The answer 
is the high cost of implementing the latest information technologies, 
as well as the lack of uniformity among various technology products.
  A physician can spend up to $30,000 implementing an electronic health 
records system. A hospital can spend up to five times that amount. If 
that weren't enough of a reason to say no thanks, there is one more 
reason; that is, we don't have a set of national standards in place to 
make sure that once health care providers have made the switch, their 
new system can communicate with the hospital or doctor on the other 
side of town. The result: Only 15 percent of doctors and about 30 
percent of hospitals have fully functional electronic health care 
systems today.
  A new study by a number of health care scholars estimates there will 
be another 20 years before the majority of physicians are using an 
electronic health care system.
  Let me say this. Our Presiding Officer is from Louisiana where they 
went through a terrible situation a year ago with Katrina. The folks 
who happened to be civilians and were in hospitals or nursing homes, 
for the most part, they had paper health records and they were 
destroyed. The veterans who were on the gulf coast when Katrina 
struck--either in nursing homes, VA nursing homes, or VA hospitals--
were evacuated from the area as civilians were; but when the veterans 
got to another VA facility inland, or a nursing home, or a VA hospital, 
their electronic health records were available immediately, and whoever 
provided care for them had access to the records and were able to 
provide excellent care.
  I am sorry to say that the same wasn't true for the civilians whose 
paper records were largely destroyed at the time of the evacuation.
  As a nation, we cannot afford to rely solely on health care providers 
to bring the health care industry into the 21st century. We must think 
outside of the box and build on the health information technology 
issues already underway in other areas of our health care industry.
  The Federal Employee Electronic Personal Health Records Act of 2006--
the legislation Senator Voinovich and I introduce today--does just 
that. How? By requiring all carriers that contract with the Federal 
Employees Health Benefits Program to make available an electronic 
personal health record for those of us who are enrolled in that 
program. As I said earlier, it is some 8 million people.
  Electronic personal health records will provide enrollees with a tool 
to better access and control their health information. Via the 
Internet, an enrollee will be able to log on to their

[[Page S9045]]

electronic personal health record to keep track of such things as their 
medications, cholesterol, glucose levels, allergies, and immunization 
records.
  An enrollee will also be able to review a comprehensive, easily 
understood listing of their health care claims. Health care providers, 
payers, and enrollees will be able to add this information onto the 
electronic personal health record. Enrollees will benefit, I believe, 
significantly from such a tool.
  An enrollee can easily share sections of the electronic personal 
health record with their health care provider, ensuring that their 
provider has the most up-to-date and accurate health information when 
making clinical decisions.
  In the case of an emergency, an enrollee can also grant others the 
ability to access their electronic personal health record. Again, it is 
the decision of the patient, the enrollee in the Federal Employee 
Health Benefits Program, to decide what kind of access to grant to a 
provider or a member of the family or another person in the wake of an 
emergency.
  Having health information readily available will increase the 
efficiency and safety of health care for enrollees by eliminating 
unwarranted tests, procedures, and prescriptions.
  Most important, the legislation ensures that the electronic personal 
health records provided for through this act are kept private and 
secure.
  The electronic personal health records are required to include a 
number of security features. They include, among other things, user 
authentication and audit trails.
  The legislation also requires that carriers comply with all privacy 
and security regulations outlined in the Health Insurance Portability 
and Accountability Act, which we call HIPAA.
  Mr. President, what Senator Voinovich and I are introducing today 
will help demonstrate the importance and utility of health information 
technology--not just the importance of the technology but the 
importance of harnessing the technology--in the delivery of health care 
in this country today. In this case, the potential is as many as 8 
million additional Americans.
  This bill is designed to jumpstart this new technology by requiring 
some of the largest health insurance companies to offer these 
electronic personal health records, which many are beginning to do 
today. As more insurance companies, health care providers, and 
consumers use this new technology, I am convinced that more people will 
recognize its advantages, and we can more quickly move America's health 
care industry into the 21st century.
  We view this initiative as the next necessary step for the Nation's 
largest employer-sponsored health insurance program that prides itself 
on being a model for best practices in health care.
  I invite my colleagues to join Senator Voinovich and me as we 
introduce this legislation. We look forward to talking with our 
colleagues about it. With luck, maybe we will have a hearing. Senator 
Voinovich may hold one in his subcommittee this month.
  Mr. VOINOVICH. Mr. President, I rise to speak about a bill my 
colleague Senator Carper and I introduced today, the Electronic 
Personal Health Records Act. The purpose of this legislation is to 
provide for the establishment and maintenance of electronic personal 
health records for individuals and family members enrolled in the 
Federal Employee Health Benefits Plan, FEHBP.
  The widespread adoption of health information technology, such as 
electronic health record, (EHR), will revolutionize the health care 
profession. In fact, the Institute of Medicine, the National Committee 
on Vital and Health Statistics, and other expert panels have identified 
information technology as one of the most powerful tools in reducing 
medical errors and improving the quality of care. Unfortunately, our 
country's health care industry lags far behind other sectors of the 
economy in its investment in IT.
  The Institute of Medicine estimates that there are nearly 98,000 
deaths each year resulting from medical errors. Many of these deaths 
can be directly attributed to the inherent imperfections of our current 
paper-based health care system. This statistic is startling and one 
that I hope will motivate my colleagues to take a close look at the 
goals of our legislation.
  The voluntary EHRs that would be established through the Electronic 
Personal Health Records Act will provide clinicians with real-time 
access to their patient's health history. Each EHR would contain claims 
data, contact information for providers of health care services, and 
other useful information for diagnosis and treatment. The records will 
be available cost-free to FEHBP participants and will maintain strict 
adherence to HIPAA.
  Under the bill, the Office of Personnel Management, OPM, would be 
required to ensure that all carriers who participate in FEHBP educate 
their members about the implementation of the EHR, as well as give 
timely notice of the establishment of the record and an opportunity for 
each individual to elect not to participate in the program.
  OPM, through their carriers, would also have to ensure that all 
records would be available for electronic access through Internet, fax, 
or printed method for the use of the individual, and that to the extent 
possible, records could be transferred from one plan to another. The 
bill would require EHRs to be made available two years after the 
passage of the legislation or earlier at the discretion of OPM in 
consultation with the Office of the National Coordinator for Health 
Information Technology within HHS.
  Not only can EHRs save lives and improve the quality of health care, 
they also have the potential to reduce the cost of the delivery of 
health care. According to Rand Corporation, the health care delivery 
system in the United States could save approximately $160 billion 
annually with the widespread use of electronic medical records. As a 
result, the private market is already moving toward implementing 
electronic medical records.
  This bill, simply encourages the health care industry to continue in 
that direction and take their use of technology in the delivery of care 
to the next step. I urge my colleagues to consider not only the benefit 
it will provide to the eight million individuals who receive their 
health care through the FEHBP, but also to our Nation's overall health 
care system.
                                 ______
                                 
      By Mrs. CLINTON:
  S. 3847. A bill to designate the facility of the United States Postal 
Service located at 110 Cooper Street in Babylon, New York, as the 
``Jacob Samuel Fletcher Post Office Building''; to the Committee on 
Homeland Security and Governmental Affairs.
  Mrs. CLINTON. Mr. President, I am pleased to introduce legislation 
which would designate the facility of the United States Postal Service 
located at 110 Cooper Street in Babylon, NY, as the ``Jacob Samuel 
Fletcher Post Office Building.''
  Jacob Samuel Fletcher sent his first application for military 
enlistment to the Marines when he was 8 years old. Young Jacob had 
completed an application he found in a magazine and submitted it 
through the mail. Though his mother told the Marines recruiter to call 
back in a few years, it wouldn't be long before Fletcher was wearing a 
uniform.
  Fletcher enlisted in the Army soon after the September 11 terrorist 
attacks. He told family members that he felt he had a duty to serve his 
country. This service was nothing new to his family, as both his father 
and his stepfather served in Vietnam.
  His story, however, ends in a tragically different manner than his 
father's or stepfather's. On November 14, 2003, PFC Jacob Samuel 
Fletcher was killed when a road side bomb exploded near a bus he was 
riding in Samara, Iraq. It was 11 days before his 29th birthday. He was 
posthumously awarded the Bronze Star and the Purple Heart.
  While he was close to finishing his tour of duty at the time of his 
death, Jacob told family and friends that he was not finished serving; 
he hoped to become a state trooper upon completion of his tour in the 
military.
  I ask that the Senate come together and honor this brave American for 
his service to our Nation.
                                 ______
                                 
      By Mr. KYL (for himself, Mr. DeWine, and Mr. Cornyn):
  S. 3848. A bill to amend title 18, United States Code, to support the 
war

[[Page S9046]]

on terrorism, and for other purposes; to the Committee on the 
Judiciary.
  Mr. KYL. Mr. President, I rise today to introduce the Terrorism 
Prevention Act of 2006. This Act will enhance and improve the statutes 
governing material support for terrorism, protection of classified 
information, terrorist hoaxes, and terrorist murders and assaults. 
Specifically, the TPA expands the reach of statutes punishing material 
support for terrorism, making it a crime to reward the family of a 
suicide bomber or other terrorist with the intent to facilitate 
terrorism, and increases penalties for existing material support 
offenses; clarifies and improves the Classified Information Procedures 
Act in light of the lessons learned in the Moussaoui trial; expands the 
reach of the terrorist hoax statute, and increases penalties for hoaxes 
about the deaths of U.S. soldiers during wartime; increases penalties 
for terrorist murders, kidnappings, and assaults committed overseas 
against U.S. nationals, and increases penalties for terrorist crimes 
resulting in death; and improves the United States's ability to 
investigate terrorist crimes by protecting the confidentiality of FISA 
investigations, authorizing multi-district search warrants in terrorism 
cases, and increasing penalties for obstruction of justice in terrorism 
cases.
  I ask unanimous consent that a section by section analysis of the 
Terrorism Prevention Act be printed in the Record.
  There being no objection, the text of the analysis was ordered to be 
printed in the Record, as follows:

                  The Terrorism Prevention Act of 2006


                      Section by Section Analysis

     SECTION 2. MATERIAL SUPPORT

       Subsection (a) creates a new offense, 18 U.S.C. Sec. 2339E, 
     of giving material benefits to the family or associates of 
     someone who has committed a terrorist act, if the benefit is 
     given with the intent to reward, encourage, or facilitate 
     terrorism. Section 2339E applies overseas to the extent that 
     the offenses are linked to interstate or foreign commerce, 
     are targeted at the United States or its people or property, 
     or the offender is a U.S. national or resident. The offense 
     is punishable by imprisonment for ten years to life. This new 
     offense would punish those individuals who encourage or 
     embolden suicide bombers by rewarding their families after 
     such bombings occur.
       Subsection (b) increases penalties for existing material 
     support offenses as follows: Sec. 2339A, giving material 
     support to aid a terrorist act, 10 years to life; Sec. 2339B, 
     giving material support to a designated terrorist 
     organization, 5 to 25 years; and Sec. 2339D, receiving 
     military-type training from a terrorist organization, 3 to 15 
     years. The Sec. 2339A and B penalties have not been increased 
     since the terrorist attacks of September 11, 2001.
       Subsection (c) eliminates a loophole in current law that 
     would allow an individual to give an unlimited amount of 
     medical or religious supplies to a designated terrorist 
     organization. This loophole, which was recently criticized by 
     a judge of the U.S. Court of Appeals, could allow a terrorist 
     organization to receive large amounts of supplies that it 
     could either resell in exchange for cash or distribute in its 
     local area in order to build support and gain recruits.
       Subsection (d) amends Sec. 2339D to bar attempts or 
     conspiracies to obtain military-type training from a 
     terrorist organization.
       Subsection (e) bars convicted terrorist from receiving 
     federal benefits.

     SECTION 3. IMPROVEMENTS TO CIPA

       This section implements a number of lessons learned during 
     the use of the Classified Information Procedures Act during 
     the trial of suspected 20th hijacker Zacarias Moussaoui. 
     Subsection (b) authorizes interlocutory appeals of any order 
     for access to classified information. In the Moussaoui case, 
     the Fourth Circuit determined that CIPA allows interlocutory 
     appeals only of orders entered under CIPA itself, not orders 
     entered under other authority. One judge of that Court noted 
     that, although compelled by the text of CIPA, this result 
     frustrates Congress's intent to allow prompt review of 
     disputes over disclosure of classified information.
       Subsection (c) allows requests for CIPA protection to be 
     made ex parte. Sometimes a request for protection of 
     classified information cannot be made publicly without itself 
     compromising classified information. This subsection also 
     ensures that requests for CIPA protection shall remain 
     sealed, regardless of whether they are accepted or denied, 
     and codifies the current practice of allowing such requests 
     to be made orally.
       Subsection (d) clarifies that CIPA applies to evidence 
     obtained from nondocumentary sources, such as depositions of 
     witnesses. In the Moussaoui case, the Fourth Circuit 
     determined that CIPA technically only applies to documentary 
     information and information that the defense might disclose 
     during trial. The Court nevertheless looked to CIPA to 
     develop a framework for protecting classified information 
     during depositions. This subsection effectively codifies the 
     Fourth Circuit's approach by formally applying CIPA to 
     nondocumentary sources of evidence, such as depositions.


                      SECTION 4. TERRORIST HOAXES

       This section amends the terrorist hoax statute so that it 
     punishes hoaxes relating to terrorist offenses that 
     inexplicably were excluded from the current hoax law. For 
     example, current law does not punish hoaxes related to the 
     taking of hostages in order to coerce the federal government 
     (18 U.S.C. 1203), hoaxes related to blowing up an energy 
     facility (18 U.S.C. 1366(a)), hoaxes related to terrorist 
     attacks on military bases aimed at undermining national 
     defense (18 U.S.C. 2156), or hoaxes related to attacks on 
     railways and mass-transportation facilities, such as the 
     recent London bombings (18 U.S.C. 1992-93). This section adds 
     these terrorist crimes to the predicates for the terrorist 
     hoax statute.
       This section also increases the penalties for hoaxes about 
     the death, injury, or capture of a U.S. soldier during 
     wartime. Unfortunately, there have been a number of incidents 
     in which individuals have contacted the families of US. 
     soldiers serving in Iraq, pretended to represent the military 
     or other official organizations, and falsely told the family 
     that their son, brother, or other relative had been killed. 
     This section would punish such hoaxes with imprisonment for 2 
     to 10 years. If the hoax resulted in serious bodily injury, 
     it would be punished by 5 to 25 years, and if it resulted in 
     death, 10 years to life.
       This section also clarifies that the offense of mailing 
     threatening communications applies to threats made against 
     organizations as well as individuals.


        SECTION 5. TERRORIST MURDERS, KIDNAPPINGS, AND ASSAULTS

       This section expands 18 U.S.C. Sec. 2332, which punishes 
     murder or assault of U.S. nationals overseas for terrorist 
     purposes, to also include kidnappings of U.S. nationals 
     overseas that are carried out for terrorist purposes, and 
     clarifies that sexual assault qualifies as serious bodily 
     injury for purposes of the section's assault prohibitions. 
     This section also increases penalties for terrorist murders 
     and assaults, such that a murder of a U.S. national overseas 
     that is carried out for terrorist purposes would be punished 
     by imprisonment for at least 30 years, and an assault 
     resulting in serious bodily injury would be punished by 
     imprisonment for 10 years to life. ``Serious bodily injury'' 
     is defined by federal statute to mean bodily injury 
     accompanied by a substantial risk of death, extreme physical 
     pain, protracted and obvious disfigurement, or protracted 
     loss or impairment of the function of a bodily member, organ, 
     or mental faculty.
       This section also creates a new offense of committing a 
     terrorist crime while engaging in conduct that results in 
     death. This new offense is punishable by death or 
     imprisonment for 20 years up to life. This section also makes 
     eligible for capital punishment existing offenses 
     resulting in death that involve the use of nuclear 
     weapons, anti-aircraft missiles, radiological bombs, and 
     variola (smallpox) virus, and increases to 15 years to 
     life the penalties for aiding a foreign terrorist 
     organization or state sponsor of terrorism's WMD program 
     or developing, possessing, using, or threatening to use a 
     radiological weapon.


              SECTION 6. INVESTIGATION OF TERRORIST CRIMES

       Subsection (a) limits FISA notification requirements so 
     that the government is not required to inform an individual 
     seeking an immigration benefit if FISA information was used 
     to deny their application. Such notice effectively informs 
     such an individual that he or his associates have been the 
     target of an intelligence investigation. The United States 
     should not be required to compromise an intelligence 
     investigation in order to exclude a foreign national with 
     ties to terrorism from the United States.
       Subsection (b) authorizes federal judges to authorize 
     search warrants that may be used in multiple judicial 
     districts for purposes of terrorism investigations. Such 
     investigations often require searches to be conducted in 
     different parts of the country at the same time.
       Subsection (c) increases the potential penalties for 
     obstruction of justice in the course of a terrorism 
     investigation by making the maximum penalty ten years' 
     imprisonment.
                                 ______
                                 
      By Ms. MURKOWSKI:
  S. 851. A bill to provide for the extension of preliminary permit 
periods by the Federal Energy Regulatory Commission for certain 
hydroelectric projects in the State of Alaska; to the Committee on 
Energy and Natural Resources.
  Ms. MURKOWSKI. Mr. President, I rise to introduce legislation to give 
private developers more time to complete planning and financing for a 
complex of three high-mountain lake-tap hydroelectric projects that 
promise to provide at an electric power for Southeast Alaska and for 
the Pacific Northwest.
  Today, I introduce legislation to extend by a total of six years the 
time for developers to secure data necessary to determine the 
feasibility and prepare a development application for three individual 
hydroelectric projects, all located up Thomas Bay in Southeast

[[Page S9047]]

Alaska, near Petersburg, AK. This legislation will give time for 
construction of the estimated $75 million, 45-megawatt Cascade Creek 
project, the $56 million, 30-megawatt Scenery Creek, and the $40 
million, 20-megawatt Delta Creek hydroelectric projects to be built.
  The extensions are needed and justified since the three renewable 
energy projects can only proceed after a $30 million, 27-mile high-
voltage transmission line is constructed in Alaska to the U.S.-Canada 
border, after another $130 million is spent for 150 miles of new line 
are built in Canada, after $120 million is spent for 140 miles of 
transmission line upgrades are finished on the Canadian side of the 
border to move the excess power to Skeena near Terrace in Canada, and 
after portions of the proposed Southeast Alaska, Electric, Intertie are 
finished to also permit excess power from the existing Swan Lake and 
Tyee Lake hydroelectric projects, and the proposed Mahoney Lake project 
near Ketchikan, AK, to be shared among Panhandle communities and to 
connect to export transmission lines.
  The developers of the Thomas Bay project, Cascade, LLC., deserve a 
time extension since the company, so far, has focused all of its 
planning efforts on winning approval and financing for the vital 
electrical interconnection between Southeast Alaska and Canada, not on 
finishing the three individual power projects. The State of Alaska only 
in early summer 2006 approved a grant of $3.2 million to pay for 
planning to develop a comprehensive plan and review the economic 
feasibility of using several of Southeast Alaska's nearly 100 potential 
hydroelectric sites to provide power for both local needs and for 
export of the surplus power to the Pacific Northwest power grid to help 
with financing of the 95 megawatts of installed capacity, 410 gigawatt, 
power project.
  These hydroelectric projects all involve tapping high mountain lakes 
for power. They do not require the damming of fish streams, so they 
have no negative environmental impacts. They will produce electricity 
at substantial savings over the 40- to 50-cents per kilowatt hour cost 
of generating power from expensive diesel fuel in the region and they 
will also reduce the effects of local air pollution and reduce carbon 
dioxide generation through the avoidance of fossil fuel combustion.
  Congress routinely extends the three-year deadline for worthy 
potential FERC-licensed power projects to provide additional time for 
completion of preliminary planning, financing and design. It is 
certainly appropriate to grant these three projects that are so 
interconnected this additional time to work out the contractual and 
financial planning and to finish the environmental studies needed for 
construction permits to be obtained.
  Developing renewable energy that can be produced without any 
environmental impacts on streams and the fish and wildlife they support 
is an increasingly important task of government. This bill will help 
such environmentally-sensitive development occur and will help reduce 
the nation's dependence on foreign fossil fuels. I hope for speedy 
passage of this measure.
                                 ______
                                 
      By Mr. WYDEN (for himself and Mr. Smith):
  S. 3854. A bill to designate certain land in the State of Oregon as 
wilderness, and for other purposes; to the Committee on Energy and 
Natural Resources.
  Mr. WYDEN. Mr. President, Mount Hood is a cherished wild place that 
is often photographed, visited and enjoyed by scores of Oregonians and 
many non-Oregonians as well. Today, I am introducing, along with my 
colleague Senator Smith, a new bipartisan Oregon Wilderness bill: the 
``Lewis and Clark Mount Hood Wilderness Act of 2006.'' In tribute to 
the great river-dependent journey of Lewis and Clark, our legislation 
adds nine free-flowing stretches of rivers to the National Wild and 
Scenic River System. This reflects the Oregonian wish to protect but 
also actively experience our State's treasures.
  This bill contains many elements of the bill I introduced two years 
ago while incorporating many of the provisions adopted in the House-
passed version of Mount Hood Wilderness protections, HR 5025. My bill 
builds upon the House version by adding more wilderness, more wild and 
scenic rivers, and providing a recreation area to allow diverse 
recreational opportunities. It protects the lower elevation forests 
surrounding Mount Hood and the Columbia River Gorge as Lewis and Clark 
saw them. These forests embody the natural beauty of Oregon. They 
provide the clean water necessary for the survival of threatened 
steelhead, Coho and Chinook salmon. These forests provide critical 
habitat and diverse ecosystems for elk, deer, lynx and the majestic 
bald eagle. And these are the forests that provide unparalleled 
recreational opportunities for Oregonians and our visitors.
  But the bill I introduce today differs from the bill I introduced two 
years ago because it responds to the many comments I heard in the 
ensuing years. I received thousands of comments on proposed Mount Hood 
legislation. Some comments came as a result of the general public 
meetings I held in Oregon. Many of the meetings lasted over 3 hours, 
and everyone who wanted to speak was given an opportunity to do so. 
Other comments came from the second Mount Hood Summit held at 
Timberline Lodge hosted by Representatives Walden and Blumenauer. I and 
my staff met with over 100 community groups and local governments, the 
members of the Oregon congressional delegation, the Governor, and the 
Bush administration. And still more comments came from letters and 
phone calls from Oregonians.
  Overwhelmingly, these comments urged me to protect and build on 
Oregon's Wilderness system. This goal is as important today as it was 
in 1804, 1964 or 1984--if not more so. To succeed, we must provide the 
tools that help us create a planned future on Mount Hood. This bill 
does both.
  The Mount Hood National Forest is the seventh most visited National 
Forest in the United States. In the 22 years that have elapsed since 
any new wilderness has been designated in the Mount Hood area, the 
population in local counties has increased significantly--25 percent in 
Multnomah County, 24 percent in Hood River County, and 28 percent in 
Clackamas County.
  The predominant public use of this urban forest is non-mechanized 
activity like hiking, camping, and fishing. With increasing emphasis on 
wild scenery, unspoiled wildlife habitats, free flowing rivers, 
wilderness and the need for opportunities for diverse outdoor 
recreation sometimes it seems we are in jeopardy of ``loving our wild 
places to death.''

  A few years ago, the Forest Service made a proposal to limit the 
number of people that could hike the south side of Mount Hood and the 
public outcry was enormous. Seems to me, rather than tell people that 
they are going to be restricted from using our public lands, part of 
the solution for the future of the Mountain lies in providing more 
opportunities for them to enjoy the Mountain's great places. We should 
ensure the Mount Hood National Forest can meet the increased use and 
demand for outdoor experiences--my bill will provide those 
opportunities.
  Of the hundreds of people who attended the meetings I held throughout 
the State of Oregon, the vast majority spoke in favor of more 
wilderness. Additionally, I have received more than 2,500 written 
comments supporting additional wilderness for Mount Hood.
  This is what I have heard: More Wilderness: First and foremost, I 
heard that Oregonians in astonishing numbers support protecting Mount 
Hood and the Columbia River Gorge with additional wilderness. A large 
number of Oregonians didn't think that enough wilderness areas had been 
included in the House proposal.
  Mountain Biking: Some mountain bikers expressed concerns that their 
recreation opportunities not be unfairly curtailed.
  Fire Protection and Forest Health: Some people were worried about 
forest health and those living in towns on the mountain and in the 
gorge were concerned about fire protection for their communities.
  Developed Recreation: Some people were worried about maintaining a 
role for developed recreation, like skiing, on Mt. Hood.
  This is what my bill does to address those concerns: More Wilderness: 
There are currently 189,200 acres of designated wilderness on the Mount 
Hood National Forest. The House legislation

[[Page S9048]]

would have added approximately 77,200 acres of new wilderness on the 
Mountain. The bill I am introducing today increases wilderness on Mount 
Hood by designating approximately 128,385 new acres of wilderness--
incorporating all the areas the House bill included and building upon 
them.
  This bill adds the areas surrounding the oldest Mt. Hood Wilderness--
the mountain itself--which was designated in the original Wilderness 
Act of 1964. These additions include cathedral old growth forests, the 
historic Tilly Jane trail, lava beds that were created during the Mt. 
Hood eruptions, and much of the legendary route that Oregon's pioneers 
used when they were settling our great state. To the north and west of 
the mountain, I would add the viewshed of the Columbia Gorge to the 
current Mark O. Hatfield wilderness. These areas encompass the 
spectacular ridges framing the Gorge that we all marvel at from I-84 
and include perhaps the greatest concentration of waterfalls in North 
America. To the southwest of the mountain I add lands to the current 
Salmon Huckleberry Wilderness to conserve their diverse wildlife and 
protect unique recreational areas like those around popular Mirror 
Lake. These lands include Alder Creek, the source of drinking water for 
the City of Sandy, which unanimously endorsed the draft proposal. Over 
to the east are proposed additions to the Badger Creek Wilderness. 
These areas provide a critical link between Westside forests and 
Eastside ecosystems. This area is known for beautiful fall color and 
the best deer and elk hunting in the entire Mount Hood National Forest. 
Among the areas we are protecting is the newly designated Richard L. 
Kohnstamm Memorial Area. It is dedicated in honor of Mr. Kohnstamm who 
restored the historic Timberline Lodge--built originally by the Works 
Progress Administration in 1937--to its former grandeur.

  Wild and Scenic Rivers: My proposal seeks to protect over 81 miles of 
wild and scenic rivers on nine free flowing rivers. This includes some 
of the most pristine and beautiful rivers in Oregon. Among those 
proposed rivers are the picturesque waterfalls and glacial outwash of 
the East Fork of the Hood River, and the ancestral hunting and fishing 
grounds of Fish Creek. Over 17 miles of superb salmon and steelhead 
habitat on the Collowash River have also been proposed for protection. 
My bill again incorporates all the House proposed protections and 
builds upon them.
  Mountain Biking: I believe that local riders raised some valid 
concerns, so I did two things. I have proposed Mount Hood National 
Recreation Area. It will offer greater, permanent environmental 
protections to those beautiful areas, while providing mountain bikers, 
and other recreational users, an opportunity to continue to recreate in 
these areas. Additionally, I made boundary adjustments to ensure all 
open mountain biking trails were not included in my proposed 
wilderness.
  Fire Protection and Forest Health: I protect wilderness, where there 
are healthy, older trees that should never be harvested on Mount Hood 
or in the Gorge. Older, healthy stands are the most resistant to fire 
and disease. However, there is an enormous backlog of over-crowded, 
plantation, second-growth that should be thinned. My bill incorporates 
House provisions that would give the Forest Service a mandate to 
prepare an assessment for promoting forests resilient to fire, insects 
and disease. This also includes provisions to study and encourage the 
development of biomass in conjunction with forest health work. In 
addition, I added fire safe community zones so that the Secretary will 
construct a system of fire safe buffer zones around the communities of 
Cascade Locks and Government Camp.
  Developed Recreation: In order to facilitate developed recreation 
opportunities I have adopted the House provisions establishing a ``fee-
retention'' provision that will establish an account for the Mount Hood 
National Forest. In addition, in order to help address growth while 
ensuring access to recreational opportunities, I have adopted House 
provisions directing the Secretary and the State of Oregon to develop 
an integrated transportation plan for the Mount Hood region.
  Local and Tribal Relationships: I have also incorporated the House 
provisions on local and tribal relationships emphasizing the rich 
history of the Mount Hood region and affirming the rights of Native 
peoples to access the mountains resources, as they have for 
generations.
  The protection of these important Oregon places will depend on the 
hard work and dedication of all Oregonians and particularly that of my 
Oregon colleagues here in the Congress. I am especially pleased that 
Senator Smith has joined me in developing this bipartisan legislation 
and putting forth our proposal for wilderness. I am hopeful everyone 
will pull together: county Commissioners, environmentalists, 
entrepreneurs, chambers of commerce, state elected officials, the 
Governor, and the Oregon delegation here in the Capitol. I look forward 
to perfecting legislation together in the coming weeks, and seeing its 
swift adoption by Congress thereafter. Then the grandeur of Mount Hood 
and other Oregon treasures can be assured for future generations.
  Soda Mountain Wilderness: In addition, I wish to offer my 
cosponsorship of legislation to be presented by Senator Smith, creating 
the Soda Mountain Wilderness and authorizing the voluntary cancellation 
of grazing leases in the Cascade-Siskiyou National Monument. This bill 
would establish a 23,000-acre Soda Mountain Wilderness in the 
backcountry of the Cascade-Siskiyou National Monument. In addition, it 
provides for the negotiated voluntary grazing permit lease buyout in 
the Monument. This proposed wilderness area lies at the intersection of 
the Siskiyou and Cascade mountain ranges, and the Oregon Desert, 
California chaparral, High Cascade and coastal Westside forests. It is 
truly where east meets west meets north meets south. This makes it a 
truly unique and biodiverse ecosystem and a key wildlife corridor--one 
that is used by ten rare, threatened or endangered species, including 
the northern spotted owl, Ashland thistle, and the Siskiyou fritillary. 
It is also home to populations of trout, elk, bobcats, black bears and 
falcons. The grazing buyout in this bill also provides a win-win 
situation. It provides a good deal for the ranchers--the negotiated 
agreement between the Bureau of Land Management grazing lessees and the 
conservationists includes an agreed-upon conservationist premium to be 
paid to the lessees. This premium enhances the compensation lessees 
receive from the federal government as part of the legislation. It also 
ensures this special place will be protected. I commend Senator Smith 
for introducing this legislation and am happy to join him in 
introducing this bill.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3854

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Lewis and 
     Clark Mount Hood Wilderness Act of 2006''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

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

                TITLE I--DESIGNATION OF WILDERNESS AREAS

Sec. 101. Findings and purpose.
Sec. 102. Lewis and Clark Mount Hood wilderness areas.
Sec. 103. Map and legal descriptions.
Sec. 104. Administration.
Sec. 105. Buffer zones.
Sec. 106. Fire safe community zones.
Sec. 107. Gateway communities.
Sec. 108. Fish and wildlife; hunting and fishing.
Sec. 109. Trail restoration and study.
Sec. 110. Fire, insects, and diseases.
Sec. 111. Land reclassification.
Sec. 112. Valid existing rights and withdrawal.
Sec. 113. Maintenance and replacement of foot bridges in wilderness 
              areas.
Sec. 114. Richard L. Kohnstamm Memorial Area.

 TITLE II--DESIGNATION OF STREAMS FOR WILD AND SCENIC RIVER PROTECTION 
                         IN THE MOUNT HOOD AREA

Sec. 201. Finding and purpose.
Sec. 202. Wild and scenic river designations, Mount Hood National 
              Forest.
Sec. 203. Impact on water rights and flow requirements.

             TITLE III--MOUNT HOOD NATIONAL RECREATION AREA

Sec. 301. Designation.

[[Page S9049]]

           TITLE IV--TRANSPORTATION AND COMMUNICATION SYSTEMS

Sec. 401. Definition of Mount Hood region.
Sec. 402. Transportation plan.
Sec. 403. Study relating to gondola connection and intermodal 
              transportation center.
Sec. 404. Burial of power lines.
Sec. 405. Culvert replacement.
Sec. 406. Clarification of treatment of State highways.

                         TITLE V--LAND EXCHANGE

         Subtitle A--Cooper Spur-Government Camp Land Exchange

Sec. 501. Purpose.
Sec. 502. Cooper Spur-Government Camp land exchange.

                    Subtitle B--Other Land Exchanges

Sec. 511. Land exchange, Port of Cascade Locks-Pacific Crest National 
              Scenic Trail.
Sec. 512. Hunchback Mountain land exchange, Clackamas County.

     TITLE VI--MOUNT HOOD NATIONAL FOREST AND WATERSHED STEWARDSHIP

Sec. 601. Findings and purpose.
Sec. 602. Forest stewardship assessment.
Sec. 603. Sustainable biomass utilization study.
Sec. 604. Watershed management memoranda of understanding.
Sec. 605. Termination of authority.

 TITLE VII--CRYSTAL SPRINGS WATERSHED SPECIAL RESOURCES MANAGEMENT UNIT

Sec. 701. Findings and purpose.
Sec. 702. Establishment of Crystal Springs Watershed Special Resources 
              Management Unit.
Sec. 703. Administration of Management Unit.
Sec. 704. Acquisition of lands.
Sec. 705. Effective date.

               TITLE VIII--LOCAL AND TRIBAL RELATIONSHIPS

Sec. 801. Findings and purpose.
Sec. 802. First foods gathering areas.
Sec. 803. Forest Service coordination with State and local governments.
Sec. 804. Savings provisions regarding relations with Indian tribes.
Sec. 805. Improved natural disaster preparedness.

                          TITLE IX--RECREATION

Sec. 901. Findings and purpose.
Sec. 902. Retention of Mount Hood National Forest land use fees from 
              special use authorizations.
Sec. 903. Use of funds in special account to support recreation.
Sec. 904. Annual reporting requirement.
Sec. 905. Mount hood national forest recreational working group.
Sec. 906. Consideration of conversion of forest roads to recreational 
              uses.
Sec. 907. Improved trail access for persons with disabilities.

                TITLE X--AUTHORIZATION OF APPROPRIATIONS

Sec. 1001. Authorization of appropriations.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) long before the arrival of Lewis and Clark, Native 
     Americans in the Oregon country lived amid the wild splendor 
     of the Cascade Mountains and the Columbia River, where the 
     waters teemed with fish, game roamed the forests, and fruits 
     and berries were abundant;
       (2) the Native Americans arrived in this bountiful land 
     from Asia by way of the Bering Sea and inhabited the land in 
     and around Mount Hood and the Columbia Gorge;
       (3) some of the tribes along the Columbia River were part 
     of the Chinook family;
       (4) many of the people of the tribes--
       (A) used canoes made from cedar logs;
       (B) were expert fisherman;
       (C) told fire legends about the mid-Columbia volcanic peaks 
     that featured warrior heroes, fair ladies, and numerous gods; 
     and
       (D) Mount Hood as Wy'East, the warrior whose passionate 
     love caused the region to be transformed as he hurled 
     powerful volcanic fire in his quest for the love of the 
     gentle maiden Loo-wit, known today as Mount St. Helens;
       (5) traveling down the Columbia River in 1805, the Lewis 
     and Clark Corps of Discovery expedition was awed by the 
     unspoiled scenic splendors of the Cascade Mountains and the 
     Columbia River Gorge cutting through the mountain rampart;
       (6) on October 18, 1805, Clark recorded in his journal: ``I 
     ascended a high cliff, about 200 feet above the water, from 
     the top of which is a level plain, extending up the river and 
     off for a great extent. From this place I discovered a 
     mountain of immense height, covered with snow.'';
       (7) following Lewis and Clark, settlers came to the Oregon 
     territory by way of the Oregon Trail, transforming more 
     accessible portions of the wild landscape into farms, 
     orchards, and small communities using the old growth forests;
       (8) in 1845, Oregon Trail pioneers Samuel K. Barlow and 
     Joel Palmer and their parties opened the Barlow Trail across 
     Barlow Pass, high on the south slopes of Mount Hood, with 
     Palmer writing on October 11, 1845: ``I had never seen a 
     sight so nobly grand.'';
       (9) even as the settlers transformed the wilderness, that 
     frontier land helped develop in the settlers the 
     characteristics of self-reliance, fortitude, hard work, 
     independence, and love of the land, which the people of 
     Oregon and the entire United States cherish to this day and 
     wish to inculcate in their children;
       (10) the unprotected wilderness that remains in the Mount 
     Hood and Columbia River Gorge region provides easily 
     accessible outdoor recreation for the descendants of the 
     early settlers and more recent arrivals;
       (11) Mount Hood is home to the historic Timberline Lodge, 
     which--
       (A) is a National Historic Landmark;
       (B) was built as a project by the Federal Works Progress 
     Administration in 1937; and
       (C) was restored to its former grandeur by the dedication 
     and stewardship of Richard L. Kohnstamm;
       (12) preserving wilderness assures the integrity of the 
     background and scenic views that enrich more developed forms 
     of recreational use, including downhill skiing and roadside 
     enjoyment of sweeping wilderness scenery;
       (13) designation as wilderness provides the strongest 
     congressional protection of scientific, cultural, 
     educational, environmental, scenic, and recreational values 
     that contribute long-term quality of life and economic 
     benefits to the people of Oregon, visitors to Oregon, and 
     local communities in and around the Mount Hood National 
     Forest, including the wilderness-dependent wildlife, high 
     water quality, and resident and anadromous fish that thrive 
     in undisturbed ecosystems;
       (14) the Mount Hood National Forest is the seventh most 
     visited National Forest in the United States;
       (15) wilderness management is interrelated with and will 
     interface with the established activities and management of 
     adjacent land, particularly when the land is high-density 
     recreation land;
       (16) Mount Hood National Forest is predominantly used by 
     the public for mechanized and non-mechanized activities, such 
     as hiking, camping, and fishing, which according to the Mount 
     Hood National Forest Management Plan, are projected to 
     increase dramatically over time;
       (17) the Land and Resource Management Plan for Mount Hood 
     National Forest provides that ``the present capability to 
     supply recreational opportunities such as hiking on trails in 
     primitive and semi-primitive non-motorized areas is predicted 
     to fall short of satisfying demand'';
       (18) according to the plan described in paragraph (17), the 
     Mount Hood National Forest--
       (A) provides resources for nearly 2 times the current 
     demand for developed recreation such as skiing, power 
     boating, and sightseeing by car; but
       (B) meets less than \2/3\ of the demand for back country 
     recreation;
       (19) the Management Plan for Mount Hood National Forest 
     projects that by 2040, the Mount Hood National Forest will 
     only meet 16 percent of the demand for wilderness recreation, 
     while meeting more than 100 percent of the demand for 
     mechanized recreation;
       (20) because the Mount Hood National Forest provides 
     drinking water for more than 16 communities and over 40 
     percent of Oregon residents, management of the Mount Hood 
     National Forest needs to take into consideration plans 
     developed by local watershed councils in managing the forest; 
     and
       (21) the management of the Mount Hood National Forest 
     should address practical, site-specific situations in a 
     manner that supports wilderness and the general 
     environmental, economic, and community-related welfare of the 
     mountain.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       (2) Mountain bike.--The term ``mountain bike'' does not 
     include a motorized vehicle.
       (3) Old growth.--The term ``old growth'', with respect to a 
     tree or grove of trees, means a tree or grove that is--
       (A) at last 120 years old; or
       (B) previously unmanaged.
       (4) Secretary.--The term ``Secretary'' means--
       (A) when used in reference to Forest Service land, the 
     Secretary of Agriculture; and
       (B) when used in reference to Bureau of Land Management 
     land, the Secretary of the Interior.
       (5) State.--The term ``State'' means the State of Oregon.

                TITLE I--DESIGNATION OF WILDERNESS AREAS

     SEC. 101. FINDINGS AND PURPOSE.

       (a) Findings.--Congress finds that--
       (1) the most recent designation of wilderness in the Mount 
     Hood National Forest occurred in 1984; and
       (2) the designation of an additional 128,400 acres as a 
     wilderness area by this title will increase the amount of 
     wilderness designated as a wilderness area in the Mount Hood 
     National Forest by 68 percent.
       (b) Purpose.--The purpose of this title is to designate 
     approximately 128,400 acres of National Forest System land in 
     the Mount Hood National Forest as a wilderness area.

     SEC. 102. LEWIS AND CLARK MOUNT HOOD WILDERNESS AREAS.

       (a) Designations.--In accordance with the Wilderness Act 
     (16 U.S.C. 1131 et seq.), the following areas in the State 
     are designated as wilderness areas and as components of the 
     National Wilderness Preservation System:
       (1) Badger creek wilderness additions.--Certain Federal 
     land managed by the Forest

[[Page S9050]]

     Service, comprising approximately 3,700 acres, as generally 
     depicted on the maps entitled ``Badger Creek'' and ``Bonnie 
     Butte'', dated September 2006, which are incorporated in, and 
     considered to be a part of, the Badger Creek Wilderness, as 
     designated by section 3(3) of the Oregon Wilderness Act of 
     1984 (16 U.S.C. 1132 note; 98 Stat. 273).
       (2) Bull of the woods wilderness addition.--Certain Federal 
     land managed by the Forest Service, comprising approximately 
     6,870 acres, as generally depicted on the map entitled ``Bull 
     of the Woods'', dated June 2006, which is incorporated in, 
     and considered to be a part of, the Bull of the Woods 
     Wilderness, as designated by section 3(4) of the Oregon 
     Wilderness Act of 1984 (16 U.S.C. 1132 note; 98 Stat. 273).
       (3) Clackamas wilderness.--Certain Federal land managed by 
     the Forest Service and Bureau of Land Management, comprising 
     approximately 11,900 acres, as generally depicted on the maps 
     entitled ``Clackamas Canyon'', ``Big Bottom'', ``Memaloose 
     Lake'', ``South Fork Clackamas'', ``Sisi Butte'', and ``Upper 
     Big Bottom'', dated September 2006, which shall be known as 
     the ``Clackamas Wilderness''.
       (4) Lower white river wilderness.--Certain Federal land 
     managed by the Forest Service and Bureau of Land Management, 
     comprising approximately 2,850 acres, as generally depicted 
     on the map entitled ``Lower White River'', dated September 
     2006, which shall be known as the ``Lower White River 
     Wilderness''.
       (5) Mark o. hatfield wilderness additions.--Certain Federal 
     land managed by the Forest Service, comprising approximately 
     26,000 acres, as generally depicted on the maps entitled 
     ``Gorge Ridgeline'' and ``Larch Mountain'', dated September 
     2006, which shall be known as the ``Mark O. Hatfield 
     Wilderness Additions''.
       (6) Mount hood wilderness additions.--Certain Federal land 
     managed by the Forest Service, comprising approximately 
     21,580 acres, as generally depicted on the maps entitled 
     ``Elk Cove/Mazama Addition'', ``Sandy Additions'', ``Tilly 
     Jane'', ``Sand Canyon'', ``Lost Lake'', ``Twin Lakes'', 
     ``Barlow Butte'', ``White River'', and ``Richard L. Kohnstamm 
     Memorial Area'', dated September 2006, which are incorporated 
     in, and considered to be a part of, the Mount Hood Wilderness 
     as designated under section 3(a) of the Wilderness Act (16 
     U.S.C. 1132(a)), and enlarged by section 3(d) of the 
     Endangered American Wilderness Act of 1978 (16 U.S.C. 1132 
     note; 92 Stat. 43).
       (7) Roaring river wilderness.--Certain Federal land managed 
     by the Forest Service, comprising approximately 37,750 acres, 
     as generally depicted on the map entitled ``Roaring River 
     Wilderness'', dated September 2006, which shall be known as 
     the ``Roaring River Wilderness''.
       (8) Salmon-huckleberry wilderness additions.--Certain 
     Federal land managed by the Forest Service, comprising 
     approximately 17,720 acres, as generally depicted on the maps 
     entitled ``Alder Creek Addition'', ``Eagle Creek Addition'', 
     ``Mirror Lake'', ``Inch Creek'', ``Salmon River Meadows'', 
     and ``Hunchback Mountain'', dated September 2006, which are 
     incorporated in, and considered to be a part of, the Salmon-
     Huckleberry Wilderness, as designated by section 3(2) of the 
     Oregon Wilderness Act of 1984 (16 U.S.C. 1132 note; 98 Stat. 
     273).
       (b) Effect of Designations.--
       (1) Electric utilities.--The areas in the State that are 
     designated as wilderness areas and as components of the 
     National Wilderness Preservation System under subsection (a) 
     shall not--
       (A) include any land that on the date of enactment of this 
     Act is--
       (i) licensed for a hydroelectric project by the Federal 
     Energy Regulatory Commission; or
       (ii) located within 200 feet of an electric power line in 
     the White River Unit of the Mount Hood Wilderness Additions 
     under subsection (a)(6); or
       (B) affect any activity relating to the operation, 
     maintenance, or construction of a project described in clause 
     (i) or (ii) of subparagraph (A).
       (2) Columbia gorge airshed.--The area depicted on the maps 
     entitled ``Gorge Ridgeline Wilderness'' and ``Large 
     Mountain'', dated September 2006, that is designated as a 
     wilderness area and as a component of the National Wilderness 
     Preservation System under subsection (a) shall not result in 
     the designation of a Class I airshed in the Columbia Gorge 
     through Federal regulatory action.

     SEC. 103. MAP AND LEGAL DESCRIPTIONS.

       (a) In General.--As soon as practicable after the date of 
     enactment of this Act, the Secretary shall file a map 
     entitled ``Lewis and Clark Mount Hood Wilderness Additions of 
     2006'', dated September 2006, and a legal description of each 
     wilderness area designated by this title, with--
       (1) the Committee on Energy and Natural Resources of the 
     Senate; and
       (2) the Committee on Resources of the House of 
     Representatives.
       (b) Force of Law.--The map and legal descriptions filed 
     under subsection (a) shall have the same force and effect as 
     if included in this Act, except that the Secretary may 
     correct typographical errors in the map and each legal 
     description.
       (c) Public Availability.--Each map and legal description 
     filed under subsection (a) shall be on file and available for 
     public inspection in--
       (1) the office of the Chief of the Forest Service;
       (2) the office of the Director of the Bureau of Land 
     Management; and
       (3) the applicable local Forest Service and Bureau of Land 
     Management offices.

     SEC. 104. ADMINISTRATION.

       (a) In General.--Subject to valid rights in existence on 
     the date of enactment of this Act, each wilderness area 
     designated under this title shall be administered by the 
     Secretary in accordance with the Wilderness Act (16 U.S.C. 
     1131 et seq.).
       (b) Consistent Interpretation to the Public.--
     Notwithstanding their separate jurisdictions, the Secretary 
     of Agriculture and the Secretary of the Interior shall 
     collaborate to ensure that the wilderness areas designated by 
     this title, if appropriate, are interpreted for the public as 
     an overall complex related by--
       (1) common location in the Mount Hood-Columbia River Gorge 
     region;
       (2) the abundant history of Native American use;
       (3) the epic journey of Lewis and Clark;
       (4) the pioneer settlement and growth of the State; and
       (5) water sources for more than 40 percent of the residents 
     of the State.
       (c) Incorporation of Acquired Land and Interests.--Any land 
     or interest in land located within the boundaries of an area 
     designated as a wilderness area by this title that is 
     acquired by the United States after the date of enactment of 
     this Act shall be added to, and administered as part of, the 
     wilderness area within which the acquired land or interest is 
     located.

     SEC. 105. BUFFER ZONES.

       (a) In General.--As provided in the Oregon Wilderness Act 
     of 1984 (16 U.S.C. 1132 note; Public Law 98-328), Congress 
     does not intend for designation of wilderness areas in the 
     State under this title to lead to the creation of protective 
     perimeters or buffer zones around each wilderness area.
       (b) Activities or Uses up to Boundaries.--The fact that 
     nonwilderness activities or uses can be seen or heard from 
     within a wilderness area shall not, of itself, preclude the 
     activities or uses up to the boundary of the wilderness area.

     SEC. 106. FIRE SAFE COMMUNITY ZONES.

       Consistent with the Mount Hood National Forest Management 
     Plan and the Healthy Forests Restoration Act of 2003 (16 
     U.S.C. 6501 et seq.), the Secretary shall construct a 
     strategic system of defensible fuel profile zones (including 
     shaded fuelbreaks, thinning, individual tree selection, and 
     other methods of vegetation management) between the 
     wilderness boundary and the community boundary around Cascade 
     Locks and Government Camp.

     SEC. 107. GATEWAY COMMUNITIES.

       (a) In General.--The Secretary may provide grants to 
     communities that are gateways to Mount Hood Wilderness areas, 
     including the Hoodland Fire District, Government Camp, and 
     the villages surrounding Mount Hood, and the appropriate 
     county governments in the State, to be administered through 
     the Forest Service State and Private Forestry program.
       (b) Limitation of Funds.--The total amount of funds 
     provided by the Secretary to gateway communities under 
     subsection (a) shall not exceed $10,000,000.

     SEC. 108. FISH AND WILDLIFE; HUNTING AND FISHING.

       (a) Fish and Wildlife.--In furtherance of the purposes of 
     the Wilderness Act (16 U.S.C. 1131 et seq.), the Secretary 
     may carry out management activities to maintain or restore 
     fish and wildlife populations and fish and wildlife habitats 
     on the National Forest System land designated as wilderness 
     by section 102 if those activities are--
       (1) consistent with applicable wilderness management plans; 
     and
       (2) carried out in accordance with applicable guidelines 
     and policies.
       (b) Bull Trout Restoration Project.--
       (1) In general.--Nothing in this Act affects the authority 
     of the Secretary to carry out the Bull Trout restoration 
     project underway as of the date of enactment of this Act in 
     Clear Branch Creek.
       (2) Minimum tool policies.--The Secretary shall carry out 
     the Bull Trout restoration project under paragraph (1) in 
     accordance with the minimum tools policies of the Forest 
     Service.

     SEC. 109. TRAIL RESTORATION AND STUDY.

       (a) Palmeteer Trail Restoration.--
       (1) In general.--It is the intent of Congress that nothing 
     in this title shall prevent the Secretary from conducting the 
     planned Palmateer Trail restoration project underway as of 
     the date of enactment of this Act in the Twin Lakes area of 
     the Mount Hood National Forest to restore the quality of the 
     Trail.
       (2) Minimum tools policies.--The Secretary shall carry out 
     the Palmateer Trail restoration project described in 
     paragraph (1) in accordance with the minimum tools policies 
     of the Forest Service.
       (b) Study of Cool Creek Trail 794.--The Secretary shall 
     conduct a study of the appropriate public use of Cool Creek 
     Trail 794.

     SEC. 110. FIRE, INSECTS, AND DISEASES.

       As provided in section 4(d)(1) of the Wilderness Act (16 
     U.S.C. 1133(d)(1)), within the wilderness areas designated by 
     this Act, the Secretary of Agriculture (in collaboration with 
     the Secretary of the Interior, where appropriate) may take 
     such measures as are necessary to control fire, insects, and 
     diseases, subject to such conditions as the Secretary of 
     Agriculture (in collaboration with

[[Page S9051]]

     the Secretary of the Interior where appropriate) determines 
     to be desirable.

     SEC. 111. LAND RECLASSIFICATION.

       (a) Oregon and California Railroad Land.--Not later than 
     180 days after the date of enactment of this Act, the 
     Secretary of Agriculture and the Secretary of the Interior 
     shall identify any Oregon and California Railroad Land that 
     is subject to section 201 of the Act of August 28, 1937 (43 
     U.S.C. 1181f), within the boundary of the Clackamas 
     Wilderness, as generally depicted on the map entitled ``South 
     Fork Clackamas'', dated September 2006.
       (b) Public Domain Land.--
       (1) Definition of public domain land.--In this section, the 
     term ``public domain land''--
       (A) has the meaning given the term ``public land'' in 
     section 103 of the Federal Land Policy and Management Act of 
     1976 (43 U.S.C. 1702); and
       (B) does not include any land managed under the Act of 
     August 28, 1937 (43 U.S.C. 1181a et seq.).
       (2) Identification.--Not later than 180 days after the date 
     of enactment of this Act, the Secretary of the Interior shall 
     identify public domain land within the State that is 
     approximately equal in acreage of land described in 
     subsection (a), but is not subject to the Act of August 28, 
     1937 (43 U.S.C. 1181a et seq.).
       (3) Maps.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary of the Interior shall 
     submit to Congress and publish in the Federal Register, 1 or 
     more maps depicting the land identified under subsections (a) 
     and this subsection.
       (4) Reclassification.--After providing an opportunity for 
     public comment, the Secretary of the Interior shall 
     administratively reclassify--
       (A) the land described in subsection (a) as public domain 
     land that is not subject to section 201 of the Act of August 
     28, 1937 (43 U.S.C. 1181f); and
       (B) the land described in this subsection as Oregon and 
     California Railroad Land that is subject to the Act of August 
     28, 1937 (43 U.S.C. 1181a et seq.).

     SEC. 112. VALID EXISTING RIGHTS AND WITHDRAWAL.

       (a) Valid Existing Rights.--Nothing in this Act affects any 
     valid existing right.
       (b) Withdrawal.--Subject to valid rights existing on the 
     date of enactment of this Act, the Federal land referred to 
     in section 102 is withdrawn from all forms of--
       (1) appropriation;
       (2) disposal under public law;
       (3) location, entry, and patent under mining law; and
       (4) disposition under all laws pertaining to mineral and 
     geothermal leasing or mineral materials.

     SEC. 113. MAINTENANCE AND REPLACEMENT OF FOOT BRIDGES IN 
                   WILDERNESS AREAS.

       (a) In General.--In the case of each wilderness area 
     designated or expanded by section 102, it is the intent of 
     Congress that the Secretary be able to provide for--
       (1) the maintenance of any foot bridge crossing located in 
     a wilderness area; and
       (2) when needed, the replacement of the foot bridge 
     crossings to ensure public access and safety.
       (b) Minimum Tool Policies.--The Secretary shall carry out 
     foot bridge replacement work under subsection (a) in 
     accordance with the minimum tools policies of the Forest 
     Service.

     SEC. 114. RICHARD L. KOHNSTAMM MEMORIAL AREA.

       (a) Designation.--Certain Federal land managed by the 
     Forest Service, comprising approximately 30 acres, as 
     generally depicted on the map entitled ``Richard L. Kohnstamm 
     Memorial Area'', dated September 2006, and approximately 157 
     acres of designated wilderness, as generally depicted on the 
     map entitled ``Richard L. Kohnstamm Memorial Area'', dated 
     September 2006, shall be known and designated as the 
     ``Richard L. Kohnstamm Wilderness''.
       (b) References.--Any reference in a law, map, regulation, 
     document, paper, or other record of the United States to an 
     area described in subsection (a) shall be deemed to be a 
     reference to the Richard L. Kohnstamm Wilderness.
       (c) Boundary.--
       (1) In general.--The memorial area shall consist of land 
     located within the boundary depicted on the map entitled 
     ``Richard L. Kohnstamm Memorial Area'', dated September 2006.
       (2) Availability of map.--The map shall be on file and 
     available for public inspection in the appropriate offices of 
     the Forest Service.

 TITLE II--DESIGNATION OF STREAMS FOR WILD AND SCENIC RIVER PROTECTION 
                         IN THE MOUNT HOOD AREA

     SEC. 201. FINDING AND PURPOSE.

       (a) Finding.--Congress finds that the addition of 81 miles 
     of waterways to the National Wild and Scenic River System in 
     the Mount Hood National Forest would increase the total 
     length of the portion of the National Wild and Scenic River 
     System that is located in the Mount Hood National Forest by 
     approximately 47 percent.
       (b) Purpose.--The purpose of this title is to designate 
     approximately 81 miles of waterways in the Mount Hood 
     National Forest as additions to the National Wild and Scenic 
     Rivers System.

     SEC. 202. WILD AND SCENIC RIVER DESIGNATIONS, MOUNT HOOD 
                   NATIONAL FOREST.

       Section 3(a) of the Wild and Scenic Rivers Act (16 U.S.C. 
     1274(a)) is amended--
       (1) by designating the undesignated paragraph relating to 
     the White Salmon River as paragraph (167); and
       (2) by adding at the end the following:
       ``(168) Mount hood national forest, oregon.--The following 
     segments in the Mount Hood National Forest in the State of 
     Oregon, to be administered by the Secretary of Agriculture:
       ``(A) The 4.1-mile segment of the South Fork of the 
     Clackamas River from its confluence with the East Fork of the 
     South Fork of the Clackamas to the its confluence with the 
     Clackamas River, as a scenic river.
       ``(B) The 8.5-mile segment of Eagle Creek from its 
     headwaters to the Mount Hood National Forest boundary, of 
     which--
       ``(i) the 6.7-mile segment from its headwaters to the west 
     section line of T. 3 S., R. 6 E., sec. 20, as a wild river; 
     and
       ``(ii) the remaining 1.8-mile segment from that section 
     line, as a recreational river.
       ``(C) The 3.7-mile segment of the Middle Fork of the Hood 
     River from the confluence of Clear and Coe Branches to the 
     Mount Hood National Forest boundary of sec. 11 and 12 in T. 1 
     S., R. 9 and 10 E., as a scenic river.
       ``(D) The 4.6-mile segment of the South Fork Roaring River 
     from its headwaters to its confluence with Roaring River, as 
     a wild river.
       ``(E) The 4.3-mile segment of the Zig Zag River from its 
     headwaters to the Mount Hood Wilderness boundary, as a wild 
     river.
       ``(F) The 11.1-mile segment of Fifteenmile Creek from its 
     source at Senecal Spring to the Mount Hood National Forest 
     boundary, including--
       ``(i) the 2.6-mile segment from its source at Senecal 
     Spring to the Badger Creek Wilderness boundary, as a wild 
     river;
       ``(ii) the 0.4-mile segment from the Badger Creek 
     Wilderness boundary to the point 0.4 miles downstream, as a 
     scenic river;
       ``(iii) the 7.9-mile segment from the point 0.4 miles 
     downstream of the Badger Creek Wilderness boundary to the 
     western edge of sec. 20, T. 2 S., R. 12 E., WM, as a wild 
     river; and
       ``(iv) the 0.2-mile segment from the western edge of 
     section 20, T. 2 S., R. 12 E., WM to the Mount Hood National 
     Forest boundary, as a scenic river;
       ``(G) The 13.5-mile segment of the East Fork Hood River 
     from Oregon State Highway 35 to the Mount Hood National 
     Forest boundary, as a recreational river.
       ``(H) The 17.8-mile segment of the Collawash River from the 
     headwaters of the East Fork Collawash to the confluence with 
     the Clackamas River, of which--
       ``(i) the 11.0-mile segment from the headwaters of the East 
     Fork Collawash River to Buckeye Creek, as a scenic river; and
       ``(ii) the 6.8-mile segment from Buckeye Creek to the 
     Clackamas River, as a recreational river.
       ``(I) The 13.6-mile segment of Fish Creek from its 
     headwaters to the confluence with the Clackamas River, as a 
     recreational river.''.

     SEC. 203. IMPACT ON WATER RIGHTS AND FLOW REQUIREMENTS.

       (a) Relation to Existing Requirements.--Congress does not 
     intend for the designation of any portion of the Hood River 
     under section 3(a) of the Wild and Scenic Rivers Act (16 
     U.S.C. 1274(a)), as amended by this Act, to have any impact 
     on any water right or flow requirement relating to--
       (1) the Middle Fork Irrigation District;
       (2) the East Fork Irrigation District; or
       (3) the Mt. Hood Meadows Ski Resort.
       (b) Exclusion of Operational Areas.--Congress does not 
     intend for the designation of any portion of the Hood River 
     under section 3(a) of the Wild and Scenic Rivers Act (16 
     U.S.C. 1274(a)), as amended by this Act, to include any 
     portion of the operational area of--
       (1) the Middle Fork Irrigation District;
       (2) the East Fork Irrigation District; or
       (3) the Mt. Hood Meadows Ski Resort.

             TITLE III--MOUNT HOOD NATIONAL RECREATION AREA

     SEC. 301. DESIGNATION.

       (a) Designation.--The Mount Hood National Recreation Area 
     shall be known and designated as the ``Mount Hood National 
     Recreation Area''.
       (b) References.--Any reference in a law, map, regulation, 
     document, paper, or other record of the United States to the 
     Mount Hood National Recreation Area shall be deemed to be a 
     reference to the Mount Hood National Recreation Area.
       (c) Boundary.--
       (1) In general.--The Mount Hood National Recreation Area 
     shall consist of land located within the boundary depicted on 
     the map entitled ``Mount Hood National Recreation Area'', 
     dated September 2006.
       (2) Availability of map.--The map shall be on file and 
     available for public inspection in the appropriate offices of 
     the Forest Service and Bureau of Land Management.
       (d) Administration.--The Secretary shall administer the 
     Mount Hood National Recreation Area in accordance with the 
     laws, rules, and regulations applicable to the national 
     forests for public outdoor recreation--
       (1) in a manner that--
       (A) protects and maintains--
       (i) the diverse recreational opportunities of the Mount 
     Hood National Recreation Area for public use; and
       (ii) fish and wildlife habitats;
       (B) conserves the scenic, recreational, cultural, 
     scientific, spiritual, and other values

[[Page S9052]]

     of the Mount Hood National Recreation Area that contribute to 
     the benefit of the public;
       (C) preserves each feature and peculiarity of the Mount 
     Hood National Recreation Area believed to be biologically 
     significant, including--
       (i) rare and endemic plant species;
       (ii) rare combinations of aquatic, terrestrial, and 
     atmospheric habitats; and
       (iii) rare combinations of outstanding and diverse 
     ecosystems and parts of associated ecosystems;
       (D) protects archeological and paleontological sites and 
     interprets those sites for the benefit of the public;
       (E) maintains and enhances the desired structural 
     components consistent with Standards and Guidelines of the 
     Northwest Forest Plan; and
       (F) prevents any cutting, sale, or removal of timber except 
     where the cutting, sale, or removal of timber--
       (i) improves the health of the forest and--

       (I) maximizes the retention of large trees as appropriate 
     to the forest type, to the extent that those trees promote 
     stands that are fire-resilient and healthy;
       (II) improves the habitats of threatened, endangered, 
     proposed, or sensitive species; and
       (III) maintains or restores the composition and structure 
     of the ecosystem by reducing the risk of uncharacteristic 
     wildfire effects;

       (ii) is incidental to the accomplishment of an approved 
     management activity not otherwise prohibited; or
       (iii) is for personal or administrative use; and
       (2) to prevent the new or temporary construction or 
     reconstruction of roads, except when the new or temporary 
     construction or reconstruction of roads is required--
       (A) to protect the health and safety of individuals in 
     cases of an imminent threat of flood, fire, or any other 
     catastrophic event that, without intervention, would cause 
     the loss of life or property;
       (B) to conduct environmental cleanup required by the 
     Federal Government;
       (C) to allow for reserved or outstanding rights provided 
     for by a statute or treaty;
       (D) to prevent irreparable resource damage by an existing 
     road;
       (E) to rectify a hazardous road condition;
       (F) as part of a Federal-aid highway project; or
       (G) in conjunction with--
       (i) the continuation, extension, or renewal of a mineral 
     lease on land that is under lease; or
       (ii) a new mineral lease that is issued immediately after 
     the expiration of an existing mineral lease.
       (e) Chainsaws.--The Secretary may use chainsaws to maintain 
     existing trails in the Mount Hood National Recreation Area.

           TITLE IV--TRANSPORTATION AND COMMUNICATION SYSTEMS

     SEC. 401. DEFINITION OF MOUNT HOOD REGION.

       In this title, the term ``Mount Hood region'' means--
       (1) Mount Hood and the other land located adjacent to the 
     mountain;
       (2) any segment of the Oregon State Highway 26 corridor 
     that is located in or near Mount Hood National Forest;
       (3) any segment of the Oregon State Highway 35 corridor 
     that is located in or near Mount Hood National Forest;
       (4) each other road of the Forest Service, State, or county 
     that is located in and near Mount Hood National Forest; and
       (5) any gateway community located adjacent to any highway 
     or road described in paragraph (2), (3), or (4).

     SEC. 402. TRANSPORTATION PLAN.

       (a) In General.--The Secretary shall collaborate with the 
     State to develop an integrated, multimodal transportation 
     plan for the Mount Hood region to achieve comprehensive 
     solutions to transportation challenges in the Mount Hood 
     region--
       (1) to promote appropriate economic development;
       (2) to preserve the landscape of the Mount Hood region; and
       (3) to enhance public safety.
       (b) Planning Process.--The transportation plan under 
     subsection (a) shall--
       (1) conform with Federal and Oregon transportation planning 
     requirements; and
       (2) be developed through a collaborative process, 
     preferably through the use of a commission composed of 
     interested persons appointed by the State, with 
     representation from the Forest Service and local governments 
     in the Mount Hood region.
       (c) Scope of Plan.--The transportation plan under 
     subsection (a) shall address issues relating to--
       (1) the transportation of individuals to and from areas 
     outside the Mount Hood region on major corridors traversing 
     that region; and
       (2) the transportation of individuals to and from locations 
     that are located within the Mount Hood region.
       (d) Contents of Plan.--At a minimum, the transportation 
     plan under subsection (a) shall consider--
       (1) transportation alternatives between and among 
     recreation areas and gateway communities that are located 
     within the Mount Hood region;
       (2) establishing park-and-ride facilities that shall be 
     located at gateway communities;
       (3) establishing intermodal transportation centers to link 
     public transportation, parking, and recreation destinations;
       (4) creating a new interchange on Oregon State Highway 26 
     that shall be located adjacent to or within Government Camp;
       (5) designating, maintaining, and improving alternative 
     routes using Forest Service or State roads for--
       (A) providing emergency routes; or
       (B) improving access to, and travel within, the Mount Hood 
     region;
       (6) reconstructing the segment of Oregon State Highway 35 
     that is located between Mineral Creek and Baseline Road to 
     address ongoing debris flow locations; and
       (7) creating mechanisms for funding the implementation of 
     the transportation plan under subsection (a), including--
       (A) funds provided by the Federal Government;
       (B) public-private partnerships;
       (C) incremental tax financing; and
       (D) other financing tools that link transportation 
     infrastructure improvements with development.
       (e) Completion of Plan.--Not later than 2 years after the 
     date on which funds are first made available to carry out 
     this section, the Secretary shall complete the transportation 
     plan under subsection (a).
       (f) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $2,000,000.

     SEC. 403. STUDY RELATING TO GONDOLA CONNECTION AND INTERMODAL 
                   TRANSPORTATION CENTER.

       (a) Feasibility Study.--The Secretary shall carry out a 
     study of the feasibility of establishing--
       (1) a gondola connection that--
       (A) connects Timberline Lodge to Government Camp; and
       (B) is located in close proximity to the site of the 
     historic gondola corridor; and
       (2) an intermodal transportation center to be located in 
     close proximity to Government Camp.
       (b) Consideration of Multiple Sites.--In carrying out the 
     feasibility study under subsection (a), the Secretary may 
     consider 1 or more sites.

     SEC. 404. BURIAL OF POWER LINES.

       Because of the incongruent presence of power lines adjacent 
     to or within wilderness areas, the Secretary may provide to 
     Cascade Locks and Hood River County $3,200,000 through the 
     Forest Service State and Private Forestry program to bury 
     ground power lines adjacent to or within Mount Hood 
     Wilderness areas, including wilderness areas designated by 
     this Act.

     SEC. 405. CULVERT REPLACEMENT.

       (a) In General.--The Secretary may provide $1,000,000 to 
     Clackamas County to replace or remove culverts on the wild 
     and scenic river segments in Clackamas County, Oregon, 
     designated by title II.
       (b) Limitation.--Culvert replacement carried out by the 
     Forest Service and Clackamas County to improve fish passage 
     and the ecology of the wilderness designated by this Act 
     shall not be considered water and resource development.

     SEC. 406. CLARIFICATION OF TREATMENT OF STATE HIGHWAYS.

       (a) Exclusion.--Any part of Oregon State Highway 35 or 
     other any other State highway in existence on the date of 
     enactment of this Act (including all existing rights-of-way 
     and 150 feet on each side of the centerline, whichever is 
     greater, that is adjacent to or within wilderness areas in 
     the Mount Hood National Forest, including wilderness areas 
     designated by this Act) shall be excluded from wilderness 
     under this Act.
       (b) No Net Effect.--The designation of wilderness or wild 
     and scenic rivers under this Act or an amendment made by this 
     Act shall not limit or restrict the ability of the State--
       (1) to operate, maintain, repair, reconstruct, protect, or 
     make any other improvement to Oregon State Highway 35 or any 
     other State highway in existence on the date of enactment of 
     this Act;
       (2) to use any site that is not within a highway right-of-
     way to operate, maintain, repair, reconstruct, protect, or 
     make any other improvement to those highways; or
       (3) to take any action outside of a highway right-of-way 
     that is necessary to operate, maintain, repair, reconstruct, 
     protect, or make any other improvement to those highways.
       (c) Flood Plain.--Congress encourages the carrying out of 
     projects that will reduce the impact of Oregon State Highway 
     35 on the flood plain of the East Fork Hood River.

                         TITLE V--LAND EXCHANGE

         Subtitle A--Cooper Spur-Government Camp Land Exchange

     SEC. 501. PURPOSE.

       The purpose of this subtitle is to recognize the years of 
     work by local residents and political and business leaders 
     from throughout the States of Oregon and Washington to 
     protect the north side of Mount Hood and bring to culmination 
     the land exchange authorized by section 502.

     SEC. 502. COOPER SPUR-GOVERNMENT CAMP LAND EXCHANGE.

       (a) Conveyance Required.--With the exception if the 
     Retained Conservation and Trail Easements under subsection 
     (j), the Secretary shall convey to Mt. Hood Meadows Oreg., 
     Limited Partnership (in this subtitle referred to as `Mt. 
     Hood Meadows'), all right, title, and interest of the United 
     States in and to--
       (1) a parcel of National Forest System land in Mount Hood 
     National Forest consisting of approximately 80 acres in 
     Government Camp, Clackamas County, Oregon, as depicted on the 
     map entitled ``Cooper Spur-Government Camp Land Exchange'' 
     and dated September

[[Page S9053]]

     2006 (in this subtitle referred to as the ``official map''); 
     and
       (2) a parcel of National Forest System land in Mount Hood 
     National Forest consisting of approximately 40 acres in 
     Government Camp, as depicted on the official map.
       (b) Consideration.--As consideration for the conveyance 
     under subsection (a), Mt. Hood Meadows, Meadows North, LLC, 
     and North Face Inn, LLC, shall convey to the United States 
     all right, title, and interest of these entities in and to--
       (1) a parcel of private land consisting of approximately 
     770 acres at Cooper Spur, as depicted on the official map;
       (2) all buildings, furniture, fixtures, and equipment at 
     the Inn at Cooper Spur covered by the appraisal described in 
     subsection (c)(1);
       (3) the 1,350 acre special use permit for the Cooper Spur 
     Ski Area, as depicted on the official map; and
       (4) all buildings, furniture, fixtures, and equipment at 
     the Cooper Spur Ski Area covered by the appraisal described 
     in subsection (c)(1).
       (c) Appraisals.--
       (1) In general.--The values of the lands to be exchanged 
     under this Act shall be determined by appraisals using 
     nationally recognized appraisal standards, including as 
     appropriate--
       (A) the Uniform Appraisal Standards for Federal Land 
     Acquisitions (1992); and
       (B) the Uniform Standards of Professional Appraisal 
     Practice.
       (2) Existing appraisals.--The Secretary shall review the 
     appraisals of the land and other property to be conveyed 
     under subsections (a) and (b) performed in 2005 by Appraiser 
     Steven A. Hall, MAI, CCIM, for accuracy and compliance with 
     paragraph (1). If the Secretary determines that the 
     appraisals are accurate and meet the requirements of 
     paragraph (1), then the Secretary may approve the appraisals.
       (3) Treatment of excess consideration.--Should the 
     appraisal determine a difference in values between the 
     properties exchanged, in favor of the government, excess 
     value donated to the United States will not be deemed a 
     donation for tax purposes. Donation of non-federal land may 
     exceed 25% of the value of the federal land.
       (d) Equal Value Exchange.--The values of the land to be 
     exchanged under this section shall be determined pursuant to 
     an appraisal acceptable to the Secretary of Agriculture, the 
     County and Mt. Hood Meadows Oreg., Limited Partnership. If 
     the values are not equal, they shall be equalized in the 
     manner provided in section 206(b) of the Federal Land Policy 
     and Management Act of 1976 (43 U.S.C. 1716(b)).
       (e) Compliance With Existing Law.--Except as otherwise 
     provided in this section, the Secretary shall carry out the 
     land exchange under this section in the manner provided in 
     section 206 of the Federal Land Policy Management Act of 1976 
     (43 U.S.C. 1716).
       (f) Conditions on Acceptance.--Title to the non-Federal 
     land to be acquired by the Secretary of Agriculture under 
     this section must be acceptable to the Secretary, and the 
     conveyances shall be subject to valid existing rights of 
     record. The non-Federal land shall conform with the title 
     approval standards applicable to Federal land acquisitions.
       (g) Legal Descriptions.--The exact acreage and legal 
     description of the land to be exchanged under this section 
     shall be determined by surveys satisfactory to the Secretary 
     of Agriculture. The costs of any such survey, as well as 
     other administrative costs incurred to execute the land 
     exchange, shall be negotiated between the Secretary and the 
     County.
       (h) Existing Rights.--The conveyance of Federal land under 
     this section shall be subject to valid existing rights of 
     third parties. In the alternative, the Secretary of 
     Agriculture may grant substitute permit rights of equivalent 
     utility to use other Federal land.
       (i) Completion of Land Exchange.--The Secretary of 
     Agriculture shall complete all legal and regulatory processes 
     required in connection with the land exchange under this 
     section and complete the closing of the land exchange not 
     later than 16 months after the date of the enactment of this 
     Act.
       (j) Retained Conservation and Trail Easements.--In 
     conjunction with the conveyance of title to Mt. Hood Meadows, 
     the Secretary of Agriculture shall reserve a Conservation 
     Easement to protect existing wetlands on the conveyed 
     parcels, as determined by the Oregon Department of State 
     Lands. Alternative equivalent wetland mitigation measures 
     shall be allowed to compensate for minor wetland 
     encroachments necessary for the orderly development of the 
     parcels. In addition, the Secretary of Agriculture shall 
     reserve a Trail Easement which allows the non-motorized 
     functional use by the public of identified existing trails 
     located on the conveyed parcels as depicted on the map 
     entitled ``Government Camp Trail Map'' and dated September 
     2006 as such trails may be improved or relocated to 
     accommodate development of the property. The Trail Easement 
     shall provide that roads, utilities and infrastructure 
     facilities may cross such trails.

                    Subtitle B--Other Land Exchanges

     SEC. 511. LAND EXCHANGE, PORT OF CASCADE LOCKS-PACIFIC CREST 
                   NATIONAL SCENIC TRAIL.

       (a) Conveyance Required.--The Secretary of Agriculture 
     shall convey to the Port of Cascade Locks, Cascade Locks, 
     Oregon (in this section referred to as the ``Port''), all 
     right, title, and interest of the United States in and to a 
     parcel of National Forest System land in the Columbia River 
     Gorge National Scenic Area consisting of approximately 10 
     acres, as depicted on the map entitled ``Port of Cascade 
     Locks-Pacific Crest National Scenic Trail Land Exchange'' and 
     dated June 2006.
       (b) Consideration.--As consideration for the conveyance 
     under subsection (a), the Port shall convey to the United 
     States all right, title, and interest of the Port in and to a 
     parcel of land consisting of approximately 40 acres, as 
     depicted on the map referred to in subsection (a). The 
     acquisition of this land will ensure the continued integrity 
     of the Pacific Crest National Scenic Trail in the vicinity of 
     Cascade Locks and the public's ability to access the north 
     Oregon entrance of the trail.
       (c) Equal Value Exchange.--The values of the land to be 
     exchanged under this section shall be determined pursuant to 
     an appraisal acceptable to the Secretary of Agriculture and 
     the Port. If the values are not equal, they shall be 
     equalized in the manner provided in section 206(b) of the 
     Federal Land Policy and Management Act of 1976 (43 U.S.C. 
     1716(b)).
       (d) Compliance With Existing Law.--Except as otherwise 
     provided in this section, the Secretary shall carry out the 
     land exchange under this section in the manner provided in 
     section 206 of the Federal Land Policy Management Act of 1976 
     (43 U.S.C. 1716).
       (e) Conditions on Acceptance.--Title to the non-Federal 
     land to be acquired by the Secretary of Agriculture under 
     this section must be acceptable to the Secretary, and the 
     conveyances shall be subject to valid existing rights of 
     record. The non-Federal land shall conform with the title 
     approval standards applicable to Federal land acquisitions.
       (f) Legal Descriptions.--The exact acreage and legal 
     description of the land to be exchanged under this section 
     shall be determined by surveys satisfactory to the Secretary 
     of Agriculture. The costs of such survey, as well as other 
     administrative costs incurred to execute the land exchange, 
     shall be negotiated between the Secretary and the Port.
       (g) Existing Rights.--The conveyance of Federal land under 
     this section shall be subject to valid existing rights of 
     third parties. In the alternative, the Secretary of 
     Agriculture may grant substitute permit rights of equivalent 
     utility to use other Federal land.
       (h) Completion of Land Exchange.--The Secretary of 
     Agriculture shall complete all legal and regulatory processes 
     required in connection with the conveyances under this 
     section and complete the closing of the conveyances within 16 
     months after the date of the enactment of this Act.

     SEC. 512. HUNCHBACK MOUNTAIN LAND EXCHANGE, CLACKAMAS COUNTY.

       (a) Conveyance Required.--The Secretary of Agriculture 
     shall convey to Clackamas County, Oregon (in this section 
     referred to as the ``County''), all right, title, and 
     interest of the United States in and to a parcel of National 
     Forest System land in the Mount Hood National Forest 
     consisting of approximately 160 acres, as depicted on the map 
     entitled ``Hunchback Mountain Land Exchange-Clackamas 
     County'' and dated June 2006.
       (b) Consideration.--As consideration for the conveyance 
     under subsection (a), the County shall convey to the United 
     States all right, title, and interest of the County in and to 
     a parcel of land consisting of approximately 160 acres, as 
     depicted on the map referred to in subsection (a). The 
     acquisition of this parcel will ensure the continued 
     integrity of the forested land, a substantial portion of 
     which exceeds 120 years in age, and the public's access to 
     the parcel.
       (c) Equal Value Exchange.--The values of the land to be 
     exchanged under this section shall be determined pursuant to 
     an appraisal acceptable to the Secretary of Agriculture and 
     the County. If the values are not equal, they shall be 
     equalized in the manner provided in section 206(b) of the 
     Federal Land Policy and Management Act of 1976 (43 U.S.C. 
     1716(b)).
       (d) Compliance With Existing Law.--Except as otherwise 
     provided in this section, the Secretary shall carry out the 
     land exchange under this section in the manner provided in 
     section 206 of the Federal Land Policy Management Act of 1976 
     (43 U.S.C. 1716).
       (e) Conditions on Acceptance.--Title to the non-Federal 
     land to be acquired by the Secretary of Agriculture under 
     this section must be acceptable to the Secretary, and the 
     conveyances shall be subject to valid existing rights of 
     record. The non-Federal land shall conform with the title 
     approval standards applicable to Federal land acquisitions.
       (f) Legal Descriptions.--The exact acreage and legal 
     description of the land to be exchanged under this section 
     shall be determined by surveys satisfactory to the Secretary 
     of Agriculture. The costs of any such survey, as well as 
     other administrative costs incurred to execute the land 
     exchange, shall be negotiated between the Secretary and the 
     County.
       (g) Existing Rights.--The conveyance of Federal land under 
     this section shall be subject to valid existing rights of 
     third parties. In the alternative, the Secretary of 
     Agriculture may grant substitute permit rights of equivalent 
     utility to use other Federal land.
       (h) Completion of Land Exchange.--The Secretary of 
     Agriculture shall complete all legal and regulatory processes 
     required in connection with the land exchange under

[[Page S9054]]

     this section and complete the closing of the land exchange 
     not later than 16 months after the date of the enactment of 
     this Act.

     TITLE VI--MOUNT HOOD NATIONAL FOREST AND WATERSHED STEWARDSHIP

     SEC. 601. FINDINGS AND PURPOSE.

       The purpose of this title is to direct the Forest Service 
     to prepare an assessment to promote forested landscapes 
     resilient to catastrophic fire, insects, and disease, to 
     protect homes and communities from property damage and 
     threats to public safety, and to protect and enhance existing 
     community or municipal watersheds. It is the intent of 
     Congress that site-specific forest health projects undertaken 
     pursuant to this assessment shall be completed in accordance 
     with existing law.

     SEC. 602. FOREST STEWARDSHIP ASSESSMENT.

       (a) Preparation of Assessment.--The Secretary of 
     Agriculture shall prepare an assessment to identify the 
     forest health needs in those areas of the Mount Hood National 
     Forest with a high incidence of insect or disease infestation 
     (or both), heavily overstocked tree stands, or moderate-to-
     high risk of unnatural catastrophic wildfire for the purpose 
     of improving condition class, which significantly improves 
     the forest health and water quality. The Secretary may 
     utilize existing information to complete the assessment. The 
     assessment shall also identify specific projects to address 
     these issues.
       (b) Improved Mapping.--The assessment will include peer 
     reviewed mapping of condition class 2 and condition class 3 
     areas and other areas identified in subsection (a) in Mount 
     Hood National Forest.
       (c) Completion.--The Secretary of Agriculture shall 
     complete the assessment not later than 1 year after the date 
     of enactment of this Act.
       (d) Duration of Study.--The assessment shall cover a 10-
     year period.
       (e) Implementation.--Not later than 1 year after completion 
     of the assessment, the Secretary shall commence 
     implementation of projects to address the needs identified in 
     the assessment. These projects shall be implemented using 
     authorities available to the Secretary to manage the Mount 
     Hood National Forest to achieve the purpose specified in 
     subsection (a).
       (f) Delay.--During development of the assessment under this 
     section, a forest management project that is unaffiliated 
     with the assessment and has completed review as required 
     under the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.) in accordance with existing law, need 
     not be delayed in the event the Secretary fails to meet the 
     deadline specified in subsection (c).
       (g) Relation to Existing Law and Plans.--Nothing in this 
     section grants the Secretary any authority to manage the 
     Mount Hood National Forest contrary to existing law. The 
     assessment conducted by the Secretary under this section 
     shall not supersede, be considered a supplement or amendment 
     to, or in any way affect the legal or regulatory authority of 
     the Mount Hood National Forest Land and Resource Management 
     Plan or the collection of documents entitled ``Final 
     Supplemental Environmental Impact Statement and Record of 
     Decision for Amendments to Forest Service and Bureau of Land 
     Management Planning Documents Within the Range of the 
     Northern Spotted Owl'' and ``Standards and Guidelines for 
     Management of Habitat for Late-Successional and Old-Growth 
     Forest-Related Species Within the Range of the Northern 
     Spotted Owl''.
       (h) Public Participation.--The Secretary shall provide an 
     opportunity for interested persons to be involved in 
     development of the assessment conducted by the Secretary 
     under this section.

     SEC. 603. SUSTAINABLE BIOMASS UTILIZATION STUDY.

       (a) Study Required.--The Secretary of Agriculture shall 
     conduct a study to assess the amount of long-term sustainable 
     biomass available in the Mount Hood National Forest that, 
     consistent with applicable law, could be made available as a 
     raw material for--
       (1) the production of electric energy, sensible heat, 
     transportation fuel, or substitutes for petroleum-based 
     products;
       (2) dimensional lumber, fencing, framing material, poles, 
     firewood, furniture, chips, or pulp for paper; or
       (3) other commercial purposes.
       (b) Definition.--In this section, the term ``biomass'' 
     means small diameter trees and understory vegetation that is 
     removed from forested land as a by-product of forest 
     restoration efforts.

     SEC. 604. WATERSHED MANAGEMENT MEMORANDA OF UNDERSTANDING.

       (a) Completion of Memoranda of Understanding.--To the 
     extent that memoranda of understanding or other legal 
     agreements involving watersheds of Mount Hood National Forest 
     do not exist between irrigation districts or municipalities 
     and the Forest Service, the Secretary of Agriculture may 
     complete memoranda of understanding that outline stewardship 
     goals to manage the watersheds for water quality and water 
     quantity.
       (b) Elements of Memorandum.--A memorandum of understanding 
     involving a watershed of Mount Hood National Forest shall 
     encourage adaptability, establish benchmarks regarding water 
     quality and water quantity, and require monitoring to 
     determine progress in meeting such benchmarks. The memorandum 
     of understanding may restrict public access to areas of the 
     watershed where appropriate.
       (c) Public Process Required.--
       (1) Collaboration and consultation.--The Secretary of 
     Agriculture shall ensure that the process by which the 
     Secretary enters into a memorandum of understanding with an 
     irrigation district, local government, or other entity 
     involving a watershed of Mount Hood National Forest is based 
     on collaboration and cooperation between the Forest Service 
     and local jurisdictions and other interested persons.
       (2) Public meeting required.--The Secretary and the other 
     party or parties to the proposed memorandum of understanding 
     shall hold at least 1 joint public meeting before completing 
     a final draft of the memorandum of understanding.
       (3) Public comment.--A draft memorandum of understanding 
     shall also be open to public comment before being finalized.

     SEC. 605. TERMINATION OF AUTHORITY.

       The authority provided by this title shall terminate on the 
     date that is 10 years after the date of enactment of this 
     Act.

 TITLE VII--CRYSTAL SPRINGS WATERSHED SPECIAL RESOURCES MANAGEMENT UNIT

     SEC. 701. FINDINGS AND PURPOSE.

       The purpose of this title is to establish a special 
     resources management unit to ensure protection of the quality 
     and quantity of the Crystal Springs watershed as a clean 
     drinking water source for the residents of Hood River County, 
     Oregon, while also allowing visitors to enjoy its special 
     scenic, natural, cultural, and wildlife values.

     SEC. 702. ESTABLISHMENT OF CRYSTAL SPRINGS WATERSHED SPECIAL 
                   RESOURCES MANAGEMENT UNIT.

       (a) Establishment.--Effective as provided by section 705, 
     the Secretary of Agriculture shall establish a special 
     resources management unit in the State consisting of all 
     National Forest System land that is located within 200 yards 
     from any point on the perimeter of the Crystal Springs Zone 
     of Contribution, as determined by the Crystal Springs Water 
     District, and other National Forest System land in and around 
     the Inn at Cooper Spur and the Cooper Spur Ski Area, as 
     depicted on the map entitled ``Crystal Springs Watershed 
     Special Resources Management Unit'' and dated June 2006 (in 
     this subtitle referred to as the ``official map'').
       (b) Designation.--The special resources management unit 
     established pursuant to subsection (a) shall be known as the 
     Crystal Springs Watershed Special Resources Management Unit, 
     in this title referred to as the ``Management Unit''.
       (c) Exclusion of Certain Land.--The Management Unit does 
     not include any National Forest System land otherwise covered 
     by subsection (a) that is designated as wilderness by title 
     I.
       (d) Withdrawal.--Subject to valid existing rights, National 
     Forest System land included in the Management Unit are 
     permanently withdrawn from all forms of appropriation under 
     the public land laws, including the mining laws and mineral 
     and geothermal leasing laws.
       (e) Maps and Legal Description.--
       (1) Submission of legal descriptions.--As soon as 
     practicable after the effective date specified in section 
     705, the Secretary shall prepare and submit to Congress a 
     legal description of the Management Unit.
       (2) Force of law.--The map referred to in subsection (a) 
     and the legal descriptions prepared under paragraph (1) shall 
     have the same force and effect as if included in this Act, 
     except that the Secretary may correct technical errors in the 
     map and legal descriptions. The map of the Crystal Springs 
     Zone of Contribution is incorporated in this Act to delineate 
     the boundaries of the Management Unit, and the delineation of 
     these boundaries is not intended to affect the specific uses 
     that may occur on private land within the boundaries of the 
     Management Unit.
       (3) Public availability.--The map referred to in subsection 
     (a) and the legal descriptions prepared under paragraph (1) 
     shall be filed and made available for public inspection in 
     the appropriate offices of the Forest Service.

     SEC. 703. ADMINISTRATION OF MANAGEMENT UNIT.

       (a) General Applicability of Existing Laws.--Except as 
     provided in this title, all other laws and regulations 
     affecting National Forest System lands shall continue to 
     apply to the National Forest System lands included in the 
     Management Unit.
       (b) Authorized Activities.--
       (1) Process for allowing activities.--Only activities 
     described in this subsection may occur in the Management 
     Unit, and the Secretary of Agriculture may permit an activity 
     described in this subsection to occur in the Management Unit 
     only after the Secretary--
       (A) obtains the review and opinions of the Crystal Springs 
     Water District regarding the effect of the activity on the 
     purposes of the Management Unit;
       (B) complies with all applicable Federal law regarding 
     development and implementation of the activity; and
       (C) when appropriate, provides to the general public 
     advance notice of the activity, an opportunity to comment on 
     the activity, and appeal rights regarding the activity.
       (2) Recreation.--The Secretary may--
       (A) continue to maintain recreational opportunities and 
     trails, in existence in the Management Unit as of the 
     effective date specified in section 705, within their 
     existing and historic footprints or at an alternative 
     location; and
       (B) develop new footpaths or cross-county skiing trails in 
     the Management Unit.

[[Page S9055]]

       (3) Lease of certain improvements.--The Secretary may lease 
     improvements and facilities, in existence in the Management 
     Unit as of the effective date specified in section 705, 
     within their existing and designated footprints to 1 or more 
     concessionaires.
       (4) Road maintenance.--Subject to subsection (d), the 
     Secretary may maintain National Forest System roads, in 
     existence in the Management Unit as of the effective date 
     specified in section 705 or as directed by the management 
     plan required by subsection (d). Maintenance may include the 
     installation of culverts and drainage improvements and other 
     similar activities.
       (5) Fuel reduction in proximity to improvements and primary 
     public roads.--To protect the water quality, water quantity, 
     scenic, cultural, historic, natural, and wildlife values of 
     the Management Unit, the Secretary may permit fuel reduction 
     on National Forest System land in the Management Unit--
       (A) extending up to 400 feet from structures on National 
     Forest System land or structures on adjacent private land; 
     and
       (B) extending up to 400 feet from the Cooper Spur Road, the 
     Cloud Cap Road, and the Cooper Spur ski area loop road.
       (6) Other fuel reduction and forest health activities.--The 
     Secretary may conduct fuel reduction and forest health 
     management activities in the Management Unit, with priority 
     given to activities that restore previously harvested stands, 
     including the removal of logging slash, smaller diameter 
     material, and ladder fuels. The purpose of any fire risk 
     reduction or forest health management activity conducted in 
     the Management Unit shall be the maintenance and restoration 
     of fire-resilient forest structures containing late 
     successional forest structure characterized by large trees 
     and multi-storied canopies (where ecologically appropriate) 
     and the protection of the water quality, water quantity, 
     scenic, cultural, historic, natural, and wildlife values of 
     the Management Unit.
       (c) Specifically Prohibited Activities.--The following 
     activities may not occur on National Forest System land in 
     the Management Unit, whether separately or, except as 
     provided in paragraph (2), as part of an activity authorized 
     by subsection (b):
       (1) New road construction or renovation of existing non-
     System roads.
       (2) Projects undertaken for the purpose of harvesting 
     commercial timber. The harvest of merchantable products that 
     are by-products of activities conducted pursuant to 
     subsection (b)(6) and carried out pursuant to a stewardship 
     contract are not prohibited by this subsection.
       (3) Commercial livestock grazing.
       (4) The placement or maintenance of fuel storage tanks.
       (5) The application of any toxic chemicals, including 
     pesticides, rodenticides, herbicides, or retardants, for any 
     purpose, except with the consent of the Crystal Springs Water 
     District.
       (d) Management Plan.--
       (1) Plan required.--Within 9 months after the effective 
     date specified in section 605, the Secretary of Agriculture 
     shall adopt a management plan for the Management Unit that, 
     while providing for the limited activities specifically 
     authorized by subsection (b), protects the watershed from 
     illegal dumping, human waste, fires, vandalism, and other 
     risks to water quality.
       (2) Consultation and public participation.--The Secretary 
     shall prepare the management plan in consultation with the 
     Crystal Springs Water District, the Cooper Spur Wild and Free 
     Coalition, and Hood River County and provide for public 
     participation as described in subsection (b)(1)(C).
       (e) Forest Road Closures.--As part of the management plan 
     required by subsection (d), the Secretary of Agriculture may 
     provide for the closure or gating to the general public of 
     any Forest Service road within the Management Unit, except 
     for the road commonly known as Cloud Cap Road.
       (f) Private Land.--Nothing in this section affects the use 
     of, or access to, any private property within the Crystal 
     Springs Zone of Contribution by the owners of the private 
     property and their guests. The Secretary is encouraged to 
     work with interested private landowners who have voluntarily 
     agreed to cooperate with the Secretary to further the 
     purposes of this title.
       (g) Relationship With Water District.--Except as provided 
     in this section, the Crystal Springs Water District has no 
     authorities over management or use of National Forest System 
     land included in the Management Unit.

     SEC. 704. ACQUISITION OF LANDS.

       (a) Acquisition Authority.--The Secretary of Agriculture 
     may acquire from willing landowners any lands located in the 
     Crystal Springs Zone of Contribution within the boundaries of 
     Mount Hood National Forest. Lands so acquired shall 
     automatically be added to the Management Unit.
       (b) Prohibition on Subsequent Conveyance.--The Secretary 
     may not sell, trade, or otherwise transfer ownership of any 
     land within the Management Unit, including any of the land 
     acquired under subsection (a) or received by the Secretary as 
     part of the Cooper Spur-Government Camp land exchange 
     authorized by subtitle A of title VIII and included within 
     the Management Unit, to any person.

     SEC. 705. EFFECTIVE DATE.

       The Secretary of Agriculture shall establish the Management 
     Unit as soon as practicable after the final closing of the 
     Cooper Spur-Government Camp land exchange authorized by 
     subtitle A of title VIII, but in no case later than 30 days 
     after the date of the final closing of such land exchange. 
     The Management Unit may not be established before final 
     closing of the land exchange.

               TITLE VIII--LOCAL AND TRIBAL RELATIONSHIPS

     SEC. 801. FINDINGS AND PURPOSE.

       The purpose of this title is to recognize and support the 
     ability of Native Americans to continue to gather first foods 
     in the Mount Hood National Forest using traditional methods 
     and the central role of the State and local governments in 
     management of issues dealing with natural and developed 
     environments in the vicinity of the national forest.

     SEC. 802. FIRST FOODS GATHERING AREAS.

       (a) Priority Use Areas.--The Secretary of Agriculture shall 
     identify, establish, develop, and manage priority-use areas 
     in Mount Hood National Forest for the gathering of first 
     foods by members of Indian tribes with treaty-reserved 
     gathering rights on lands encompassed by the national forest. 
     The priority-use areas shall be identified, established, 
     developed, and managed in a manner consistent with the 
     memorandum of understanding entered into between the 
     Department of Agriculture, the Bureau of Land Management, the 
     Bureau of Indian Affairs, and the Confederated Tribes of the 
     Warm Springs Reservation of Oregon (in this section referred 
     to as the ``Warm Springs Tribe'') and dated April 23, 2003, 
     and such further agreements as are necessary between the 
     Secretary of Agriculture and the Warm Springs Tribe to carry 
     out the purposes of this section.
       (b) Priority Use.--Members of Indian tribes with treaty-
     reserved gathering rights on lands encompassed by Mount Hood 
     National Forest shall have exclusive rights to gather first 
     foods in the priority-use areas established pursuant to 
     subsection (a).
       (c) Applicable Law.--In considering and selecting National 
     Forest System land for inclusion in a priority-use area under 
     subsection (a), the Secretary of Agriculture shall comply 
     with the land and resource management plan for Mount Hood 
     National Forest and applicable laws.
       (d) Definition.--In this section, the term ``first foods'' 
     means roots, berries, and plants on National Forest System 
     land in Mount Hood National Forest that have been gathered 
     for traditional and cultural purposes by members of Indian 
     tribes with treaty-reserved gathering rights on lands 
     encompassed by Mount Hood National Forest.

     SEC. 803. FOREST SERVICE COORDINATION WITH STATE AND LOCAL 
                   GOVERNMENTS.

       Congress encourages the Secretary of Agriculture to 
     cooperate with the State, local communities, counties, and 
     Indian tribes in the vicinity of Mount Hood National Forest, 
     and the heads of other Federal agencies to identify common 
     ground, coordinate planning efforts around the national 
     forest, and make the Federal Government a better partner in 
     building cooperative and lasting solutions for management of 
     Mount Hood National Forest and non-Federal land in the 
     vicinity of the national forest.

     SEC. 804. SAVINGS PROVISIONS REGARDING RELATIONS WITH INDIAN 
                   TRIBES.

       (a) Treaty Rights.--Nothing in this Act is intended to 
     alter, modify, enlarge, diminish, or extinguish the treaty 
     rights of any Indian tribe, including the off-reservation 
     reserved rights established by the Treaty of June 25, 1855, 
     with the Tribes and Bands of Middle Oregon (12 Stat. 963). 
     Section 702 is consistent with and intended to implement the 
     gathering rights reserved by such treaty.
       (b) Tribal Lands.--Nothing in this Act is intended to 
     affect lands held in trust by the Secretary of the Interior 
     for Indian tribes or individual members of Indian tribes or 
     other lands acquired by the Army Corps of Engineers and 
     administered by the Secretary of the Interior for the benefit 
     of Indian tribes and individual members of Indian tribes.
       (c) Hunting and Fishing.--Nothing in this Act is intended 
     to affect the laws, rules, and regulations pertaining to 
     hunting and fishing under existing State and Federal laws and 
     Indian treaties.

     SEC. 805. IMPROVED NATURAL DISASTER PREPAREDNESS.

       (a) Imposition of Standards.--New development occurring on 
     land conveyed by the Secretary of Agriculture under title V 
     or undertaken or otherwise permitted by the Secretary of 
     Agriculture on National Forest System land in Mount Hood 
     National Forest after the date of the enactment of this Act 
     shall be constructed or altered in compliance with 1 of the 
     nationally recognized model building codes or wildland-urban 
     interface codes and with other applicable nationally 
     recognized codes.
       (b) Inclusion of Standards in Land Conveyances.--In the 
     case of each of the land conveyances described in title V, 
     the Secretary shall impose the requirements of subsection (a) 
     as a condition on the conveyance of the Federal land under 
     the conveyance.
       (c) Effect on State and Local Law.--To the maximum extent 
     feasible, the codes imposed pursuant to subsection (a) shall 
     be consistent with the nationally recognized codes adopted by 
     the State or political subdivisions of the State. This 
     section shall not be construed to limit the power of the 
     State or a political subdivision of the State to implement or 
     enforce any law, rule, regulation, or standard concerning 
     fire prevention and control.

[[Page S9056]]

       (d) Enforcement.--The codes imposed pursuant to subsection 
     (a) may be enforced by the same entities otherwise enforcing 
     building codes regarding new development occurring on land 
     conveyed by the Secretary of Agriculture under title V.

                          TITLE IX--RECREATION

     SEC. 901. FINDINGS AND PURPOSE.

       The purpose of this title is to recognize and support 
     recreation as a dynamic social and economic component of the 
     legacy and future of the Mount Hood National Forest.

     SEC. 902. RETENTION OF MOUNT HOOD NATIONAL FOREST LAND USE 
                   FEES FROM SPECIAL USE AUTHORIZATIONS.

       (a) Special Account.--The Secretary of the Treasury shall 
     establish a special account in the Treasury for Mount Hood 
     National Forest.
       (b) Deposits.--Except as provided in section 7 of the Act 
     of April 24, 1950 (commonly known as the Granger-Thye Act; 16 
     U.S.C. 580d), the National Forest Organizational Camp Fee 
     Improvement Act of 2003 (title V of division F of Public Law 
     108-107; 16 U.S.C. 6231 et seq.), Public Law 106-206 
     (commonly known as the Commercial Filming Act; 16 U.S.C. 
     460l-d), and the Federal Lands Recreation Enhancement Act 
     (title VIII of division J of Public Law 108-477; 16 U.S.C. 
     6801 et seq.), all land use fees received after the date 
     which is 6 months after the date of enactment of this Act 
     from special use authorizations, such as recreation 
     residences, resorts, winter recreation resorts, communication 
     uses, and linear rights-of-way, and all other special use 
     types issued with regard to Mount Hood National Forest shall 
     be deposited in the special account established under 
     subsection (a).
       (c) Availability.--Subject to subsection (d), amounts in 
     the special account established under subsection (a) shall 
     remain available, without further appropriation and until 
     expended, for expenditure as provided in section 903. Upon 
     request of the Secretary of Agriculture, the Secretary of the 
     Treasury shall transfer to the Secretary of Agriculture from 
     the special account such funds as the Secretary of 
     Agriculture may request. The Secretary shall accept and use 
     the funds in accordance with section 903.
       (d) Termination of Special Account.--The special account 
     required by subsection (a) shall terminate at the end of the 
     10-year period beginning on the date of enactment of this 
     Act. Any amounts remaining in the special account at the end 
     of such period shall be transferred to the general fund of 
     the Treasury.

     SEC. 903. USE OF FUNDS IN SPECIAL ACCOUNT TO SUPPORT 
                   RECREATION.

       (a) Authorized Uses.--The Secretary of Agriculture shall 
     use funds received from the special account under section 
     902(c) for the following purposes related to Mount Hood 
     National Forest:
       (1) Installation, repair, maintenance, and facility 
     enhancement related directly to visitor enjoyment, visitor 
     access, and health and safety, such as--
       (A) the improvement and maintenance of trails, including 
     trails used for hiking, biking, snowmobiling, horseback 
     riding, cross-country skiing, and off-highway vehicles;
       (B) water system improvements; and
       (C) personal sanitation facilities improvements.
       (2) Interpretive programs, visitor information, visitor 
     services, visitor needs assessments, mapping, signage, Leave-
     No-Trace materials, and wilderness rangers.
       (3) Habitat restoration directly related to recreation.
       (4) Cooperative environmental restoration projects with 
     non-Federal partnership groups and associations, including 
     groups and associations that work with youth.
       (5) Law enforcement and rescue and recovery efforts related 
     to public use and recreation, such as law enforcement at 
     recreation events, search and rescue operations, illegal 
     recreation activities investigations, and enforcement.
       (6) Improving administration of special use authorizations.
       (7) Preparation of documents required under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) in 
     connection with the improvement or development of 
     recreational opportunities.
       (8) Other projects or partnerships recommended by the Mount 
     Hood National Forest Recreation Working Group established by 
     section 905.
       (b) Allocation Requirements.--Of the total funds received 
     by the Secretary of Agriculture from the special account 
     under section 902(c) for a fiscal year, the Secretary shall 
     allocate the funds as follows:
       (1) 95 percent of the funds to Mount Hood National Forest.
       (2) 5 percent of the funds to the Regional Office for the 
     Pacific Northwest Region of the Forest Service to develop 
     needed policy and training to support programs in wilderness 
     areas, special uses, trails, developed and dispersed 
     recreation, and interpretation related to Mount Hood National 
     Forest.

     SEC. 904. ANNUAL REPORTING REQUIREMENT.

       The Secretary of Agriculture shall submit to Congress an 
     annual report specifying--
       (1) the total funds received by the Secretary from the 
     special account under section 902(c) for the preceding fiscal 
     year;
       (2) how the funds were allocated and expended; and
       (3) the results from such expenditures.

     SEC. 905. MOUNT HOOD NATIONAL FOREST RECREATIONAL WORKING 
                   GROUP.

       (a) Establishment and Purpose.--The Secretary of 
     Agriculture shall establish the Mount Hood National Forest 
     Recreational Working Group for the purpose of providing 
     advice and recommendations to the Forest Service on planning 
     and implementing recreation enhancements in Mount Hood 
     National Forest, including advice and recommendations 
     regarding how the funds in the special account established 
     under section 902 should be requested and expended.
       (b) Duties.--The Working Group shall--
       (1) review projects proposed by the Secretary for Mount 
     Hood National Forest under section 903(a);
       (2) propose projects under section 903(a) to the Secretary;
       (3) recommend the amount of funds from the special account 
     established under section 902 to be used to fund projects 
     under section 903; and
       (4) provide opportunities for citizens, organizations, 
     Indian tribes, the Forest Service, and other interested 
     parties to participate openly and meaningfully, beginning at 
     the early stages of the development of projects under section 
     903(a).
       (c) Appointment.--
       (1) Appointment and term.--The Regional Forester, acting on 
     behalf of the Secretary of Agriculture, shall appoint the 
     members of the Working Group for a term of 3 years beginning 
     on the date of appointment. A member may be reappointed to 
     subsequent 3-year terms.
       (2) Initial appointment.--The Regional Forester shall make 
     initial appointments to the Working Group not later than 180 
     days after the date of enactment of this Act.
       (3) Vacancies.--The Regional Forester shall make 
     appointments to fill vacancies on the Working Group as soon 
     as practicable after the vacancy has occurred.
       (4) Compensation.--Members of the Working Group shall not 
     receive any compensation for their service on the Working 
     Group.
       (5) Nominations.--The State and county governments for each 
     county directly adjacent to or containing any portion of 
     Mount Hood National Forest may submit a nomination to the 
     Regional Forester for each activity or interest group 
     category described in subsection (d).
       (6) Broad and balanced representation.--In appointing the 
     members of the Working Group, the Regional Forester shall 
     provide for a balanced and broad representation from the 
     recreation community.
       (d) Composition of Working Group.--The Working Group shall 
     be composed of 15 members, selected so that the following 
     activities and interest groups are represented:
       (1) Summer non-mechanized recreation, such as hiking.
       (2) Winter non-motorized recreation, such as snowshoeing 
     and backcountry skiing.
       (3) Mountain biking.
       (4) Hunting and fishing.
       (5) Summer motorized recreation, such as off-highway 
     vehicle use.
       (6) Local environmental groups.
       (7) Winter motorized recreation, such as snowmobiling.
       (8) Permitted ski areas.
       (9) Forest products industry.
       (10) Affected Indian tribes.
       (11) Local holder of a recreation residence permit.
       (12) Local government interests, such as a county 
     commissioner or city mayor in an elected position 
     representing a county or city directly adjacent or containing 
     any portion of Mount Hood National Forest.
       (13) A resident of Government Camp.
       (14) The State.
       (15) Operators of campground facilities open to the general 
     public.
       (e) Chairperson.--The chairperson of the Working Group 
     shall be selected by a majority of the Working Group.
       (f) Other Working Group Authorities and Requirements.--
       (1) Staff assistance.--The Secretary of Agriculture shall 
     provide staff assistance to the Working Group from Federal 
     employees under the jurisdiction of the Secretary.
       (2) Meetings.--All meetings of the Working Group shall be 
     announced at least 1 week in advance in a local newspaper of 
     record and shall be open to the public.
       (3) Records.--The Working Group shall maintain records of 
     the meetings of the Working Group and make the records 
     available for public inspection.
       (g) Limitation on Administrative Assistance.--Not more than 
     5 percent of the funds allocated under section 903(b) to 
     Mount Hood National Forest for a fiscal year may be used to 
     provide administrative assistance to the Working Group during 
     that fiscal year.
       (h) Federal Advisory Committee Act.--The Federal Advisory 
     Committee Act (5 U.S.C. App.) shall not apply to the Working 
     Group.
       (i) Termination of Working Group.--The Working Group shall 
     terminate at the end of the 10-year period beginning on the 
     date of enactment of this Act.

     SEC. 906. CONSIDERATION OF CONVERSION OF FOREST ROADS TO 
                   RECREATIONAL USES.

       (a) Evaluation of Currently Closed Roads.--
       (1) Consideration for recreational use.--The Secretary of 
     Agriculture may make a determination regarding whether the 
     Forest Service roads in Mount Hood National Forest that were 
     selected before the date of enactment of this Act for closure 
     and decommissioning, but have not yet been decommissioned, 
     should be converted to recreational

[[Page S9057]]

     uses to enhance recreational opportunities in the national 
     forest, such as conversion to single-track trails for 
     mountain bikes and trails for snowmobiling, off-road vehicle 
     use, horseback riding, hiking, cross-country skiing, and 
     other recreational uses.
       (2) Consideration of environmental and economic impacts.--
     In evaluating the feasibility and suitability of converting 
     Forest Service roads under this subsection to recreational 
     uses, and the types of recreational uses to be authorized, 
     the Secretary shall take into account the environmental and 
     economic impacts of implementing the conversion and of the 
     resulting recreational uses.
       (3) Public process.--The consideration and selection of 
     Forest Service roads under this subsection for conversion to 
     recreational uses, and the types of recreational uses to be 
     authorized, shall be a public process, including consultation 
     by the Secretary of Agriculture with the Mount Hood National 
     Forest Recreational Working Group.
       (b) Future Closure Considerations.--Whenever the Secretary 
     of Agriculture considers a Forest Service road in Mount Hood 
     National Forest for possible closure and decommissioning 
     after the date of enactment of this Act, the Secretary shall 
     include, as an alternative to decommissioning the road, 
     consideration of converting the road to recreational uses to 
     enhance recreational opportunities in the Mount Hood National 
     Forest.

     SEC. 907. IMPROVED TRAIL ACCESS FOR PERSONS WITH 
                   DISABILITIES.

       (a) Construction of Trail.--The Secretary of Agriculture 
     may enter into a contract with a partner organization or 
     other person to design and construct a trail at a location 
     selected by the Secretary in Mount Hood National Forest 
     suitable for use by persons with disabilities.
       (b) Public Process.--The selection of the trail location 
     under subsection (a) and the preparation of the design of the 
     trail shall be a public process, including consultation by 
     the Secretary of Agriculture with the Mount Hood National 
     Forest Recreational Working Group.
       (c) Funding.--The Secretary of Agriculture may use funds in 
     the special account established under section 902 to carry 
     out this section.

                TITLE X--AUTHORIZATION OF APPROPRIATIONS

     SEC. 1001. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as are 
     necessary to carry out this Act.
                                 ______
                                 
      By Mr. MENENDEZ (for himself, Mr. Ensign, and Mr. Lautenberg):
  S. 3856. A bill to authorize Congress to award a gold medal to Jerry 
Lewis, in recognition of his outstanding service to the Nation; to the 
Committee on Banking, Housing, and Urban Affairs.
  Mr. MENENDEZ. Mr. President, I rise today with my colleagues Senator 
Ensign and Senator Lautenberg to introduce legislation to award Jerry 
Lewis with the Congressional Gold Medal of Honor. This well-deserved 
recognition pays tribute to the many outstanding and enduring 
contributions Jerry Lewis has made throughout his career.
  Born in 1926 in Newark, NJ, this gifted comedian has been a fixture 
in the entertainment community for more than five decades keeping 
spirits high and Americans laughing during some of the most turbulent 
periods in our history--World War II, the Cold War, and the 
assassinations of President John F. Kennedy and Dr. Martin Luther King 
Jr. But in addition to his comic persona, Lewis is also an active 
champion of charitable causes with an undying commitment to finding a 
cure for muscular dystrophy. Mr. Lewis has served for five decades as 
the National Chairman of the Muscular Dystrophy Association, which is 
an incredible organization dedicated to making a difference in the 
lives of countless families dealing with the challenges associated with 
muscular dystrophy. Forty years ago, he began the ``Jerry Lewis MDA 
Labor Day Telethon,'' an annual television program that benefits 
children and adults affected by muscular dystrophy and related 
neuromuscular diseases. This year, Mr. Lewis achieved an amazing 
accomplishment. His annual Labor Day telethon raised a record $61 
million to fight this disease.
  In September of 1976, this great body adopted a resolution expressing 
their appreciation of Jerry Lewis' philanthropic endeavors, in 
particular, his fight to find a cure for muscular dystrophy. Today, I 
believe a fitting accolade to this larger than life individual would be 
for him to join the ranks of distinguished Congressional Gold Medal 
recipients. I urge my colleagues to join me in congratulating Jerry 
Lewis, supporting the fight to end muscular dystrophy, and co-
sponsoring this important legislation.
                                 ______
                                 
      By Mr. SMITH (for himself and Mrs. Lincoln):
  S. 3857. A bill to amend the Internal Revenue Code of 1986 to provide 
incentives to small businesses; to the Committee on Finance.
  Mr. SMITH. Mr. President, I rise today to introduce the ``Bringing 
Opportunity to Our Small Business Taxpayers Act,'' or ``BOOST Act.'' I 
am pleased to be joined by my colleague Senator Blanche Lincoln of 
Arkansas.
  Small businesses represent over 99 percent of all employers and 
create approximately three-fourths of the new jobs added to the 
economy. The approximately 23 million small businesses truly are the 
backbone of our economy.
  However, this important engine of job creation and growth for our 
economy is subjected to unnecessary and unfair financial burdens 
inflicted by Federal tax policy and other laws. My bill will extend 
expensing provisions, eliminate tax inequities and encourage retirement 
plans for small businesses, as well as provide a health insurance tax 
deduction for the self-employed.
  Current law allows small businesses to expense up to $100,000 of the 
cost of property per year and invest up to $400,000 per year and still 
be eligible for expensing. My bill will make these expensing 
provisions, which are set to expire in 2009, permanent.
  My legislation also addresses inequitable provisions in the law that 
affect the approximately 3.2 million S-corporations in the United 
States. Today, businesses that convert from C-corporation to S-
corporation status are penalized for a period of ten years if they sell 
assets that were held prior to the conversion, even if the proceeds are 
driven right back into the business. By reducing the holding period 
subjected to built-in gains tax from ten years to seven years, S-
corporations will be able to unload unneeded assets and improve cash 
flow and create more jobs.
  Known as the ``sting tax,'' S-corporations that have converted from 
C-corporation status are taxed at the maximum corporate tax rate for 
passive investment income in excess of 25 percent of their gross 
receipts. This law is burdensome and unfair and needs to be revised. My 
bill will decrease the amount of income subjected to the tax. The 
adjustment will relieve S-corporations from an unnecessary tax burden 
and level the playing field with C-corporations and LLCs.
  Saving for retirement is important for all Americans and access to 
retirement plans is critical in order to build wealth for an 
individual's golden years. Unfortunately, high costs and taxes 
discourage many small businesses from providing retirement plans to 
their employees. Through tax equity and tax credit measures, my bill 
encourages small businesses to offer retirement benefits to employees 
so they will have the necessary tools to prepare for their financial 
future.
  I look forward to working with my colleagues on issues affecting 
small businesses and urge their support of my legislation.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3857

       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 ``Bringing Opportunities to 
     Our Small Business Taxpayers Act'' or ``BOOST Act''.

               TITLE I--TAX FAIRNESS FOR SMALL BUSINESSES

     SEC. 101. PERMANENT EXTENSION OF EXPENSING FOR SMALL 
                   BUSINESSES.

       (a) Dollar Limitation.--Paragraph (1) of section 179(b) of 
     the Internal Revenue Code of 1986, as amended by the Tax 
     Increase Prevention and Reconciliation Act of 2005, is 
     amended by striking ``$25,000 ($100,000 in the case of 
     taxable years beginning after 2002 and before 2010)'' and 
     inserting ``$100,000''.
       (b) Reduction in Limitation.--Paragraph (2) of section 
     179(b) of such Code, as amended by the Tax Increase 
     Prevention and Reconciliation Act of 2005, is amended by 
     striking ``$200,000 ($400,000 in the case of taxable years 
     beginning after 2002 and before 2010)'' and inserting 
     ``$400,000''.
       (c) Inflation Adjustments.--Subparagraph (A) of section 
     179(b)(5) of such Code, as amended by the Tax Increase 
     Prevention and Reconciliation Act of 2005, is amended by 
     striking ``and before 2010''.

[[Page S9058]]

       (d) Election.--Paragraph (2) of section 179(c) of such 
     Code, as amended by the Tax Increase Prevention and 
     Reconciliation Act of 2005, is amended by striking ``and 
     before 2010''.
       (e) Computer Software.--Clause (ii) of section 
     179(d)(1)(A), as amended by the Tax Increase Prevention and 
     Reconciliation Act of 2005, is amended by striking ``and 
     before 2010''.

     SEC. 102. MODIFICATION OF CONSTRUCTION CONTRACTS EXCEPTION TO 
                   PERCENTAGE OF COMPLETION METHOD OF ACCOUNTING.

       (a) In General.--Clause (ii) section 460(e)(1)(B) of the 
     Internal Revenue Code of 1986 is amended by striking 
     ``$10,000,000'' and inserting ``$25,000,000''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to contracts entered into after the date of the 
     enactment of this Act.

     SEC. 103. MODIFICATION OF LOOK-BACK METHOD FOR CERTAIN 
                   CONSTRUCTION CONTRACTS.

       (a) In General.--Subparagraph (B) of section 460(b)(3) of 
     the Internal Revenue Code of 1986 is amended to read as 
     follows:
       ``(B) Look-back method not to apply to certain contracts.--
     Paragraph (1)(B) shall not apply to--
       ``(i) any construction contract which is--

       ``(I) entered into by a taxpayer whose average annual gross 
     receipts for the 3 taxable years preceding the taxable year 
     in which such contract is completed do not exceed 
     $25,000,000, and
       ``(II) completed within 3 years of the contract 
     commencement date, or

       ``(ii) any other contract--

       ``(I) the gross price of which (as of the completion of the 
     contract) does not exceed the lesser of $1,000,000 or 1 
     percent of the average annual gross receipts of the taxpayer 
     for the 3 taxable years preceding the taxable year in which 
     the contract was completed, and
       ``(II) which is completed within 2 years of the contract 
     commencement date.

     For purposes of this subparagraph, rules similar to the rules 
     of subsections (e)(2) and (f)(3) shall apply.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to contracts completed in taxable years ending 
     after the date of the enactment of this Act.

     SEC. 104. USE OF CASH METHOD OF ACCOUNTING FOR CERTAIN SMALL 
                   BUSINESSES.

       (a) In General.--Section 446 of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     subsection:
       ``(g) Use of Cash Method of Accounting by Certain 
     Taxpayers.--
       ``(1) In general.--Notwithstanding section 471 and subject 
     to such regulations as the Secretary may provide, a 
     qualifying small business taxpayer may use the cash receipts 
     and disbursements method of accounting.
       ``(2) Qualifying small business taxpayer.--For purposes of 
     this subsection, the term `qualifying small business 
     taxpayer' means a taxpayer which--
       ``(A) meets the gross receipts test under section 448(c) 
     (determined by substituting `$10,000,000' for `$5,000,000' 
     each place it appears therein),
       ``(B) is not prohibited from using the cash receipts and 
     disbursement method of accounting under section 448, and
       ``(C) meets the requirements described in section 4.01 of 
     Revenue Procedure 2002-28.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

                     TITLE II--S CORPORATION PARITY

     SEC. 201. REDUCED RECOGNITION PERIOD FOR BUILT-IN GAINS.

       (a) In General.--Paragraph (7) of section 1374(d) of the 
     Internal Revenue Code of 1986 (relating to definitions and 
     special rules) is amended to read as follows:
       ``(7) Recognition period.--The term `recognition period' 
     means the 7-year period beginning with the 1st day of the 1st 
     taxable year for which the corporation was an S corporation. 
     For purposes of applying this section to any amount 
     includible in income by reason of distributions to 
     shareholders pursuant to section 593(e), the preceding 
     sentence shall be applied without regard to the duration of 
     the recognition period in effect on the date of such 
     distribution.''.
       (b) Effective Date.--
       (1) General rule.--The amendment made by this section shall 
     apply to any recognition period in effect on or after the 
     date of the enactment of this Act.
       (2) Special application to existing periods exceeding 7 
     years.--Any recognition period in effect on the date of the 
     enactment of this Act, the length of which is greater than 7 
     years, shall end on such date.

     SEC. 202. MODIFICATION TO S CORPORATION PASSIVE INVESTMENT 
                   INCOME RULES.

       (a) Increased Percentage Limit.--Paragraph (2) of section 
     1375(a) of the Internal Revenue Code of 1986 is amended by 
     striking ``25 percent'' and inserting ``60 percent''.
       (b) Repeal of Excessive Passive Investment Income as a 
     Termination Event.--
       (1) In general.--Section 1362(d) of the Internal Revenue 
     Code of 1986 is amended by striking paragraph (3).
       (2) Conforming amendment.--Subsection (b) of section 1375 
     of such Code is amended by striking paragraphs (3) and (4) 
     and inserting the following new paragraph:
       ``(3) Passive investment income defined.--
       ``(A) In general.--Except as otherwise provided in this 
     paragraph, the term `passive investment income' means gross 
     receipts derived from royalties, rents, dividends, interest, 
     and annuities.
       ``(B) Exception for interest on notes from sales of 
     inventory.--The term `passive investment income' shall not 
     include interest on any obligation acquired in the ordinary 
     course of the corporation's trade or business from its sale 
     of property described in section 1221(a)(1).
       ``(C) Treatment of certain lending or finance companies.--
     If the S corporation meets the requirements of section 
     542(c)(6) for the taxable year, the term `passive investment 
     income' shall not include gross receipts for the taxable year 
     which are derived directly from the active and regular 
     conduct of a lending or finance business (as defined in 
     section 542(d)(1)).
       ``(D) Treatment of certain dividends.--If an S corporation 
     holds stock in a C corporation meeting the requirements of 
     section 1504(a)(2), the term `passive investment income' 
     shall not include dividends from such C corporation to the 
     extent such dividends are attributable to the earnings and 
     profits of such C corporation derived from the active conduct 
     of a trade or business.
       ``(E) Exception for banks, etc.--In the case of a bank (as 
     defined in section 581), a bank holding company (within the 
     meaning of section 2(a) of the Bank Holding Company Act of 
     1956 (12 U.S.C. 1841(a))), or a financial holding company 
     (within the meaning of section 2(p) of such Act (12 U.S.C. 
     1841(p))), the term `passive investment income' shall not 
     include--
       ``(i) interest income earned by such bank or company, or
       ``(ii) dividends on assets required to be held by such bank 
     or company, including stock in the Federal Reserve Bank, the 
     Federal Home Loan Bank, or the Federal Agricultural Mortgage 
     Bank or participation certificates issued by a Federal 
     Intermediate Credit Bank.
       ``(F) Coordination with section 1374.--The amount of 
     passive investment income shall be determined by not taking 
     into account any recognized built-in gain or loss of the S 
     corporation for any taxable year in the recognition period. 
     Terms used in the preceding sentence shall have the same 
     respective meanings as when used in section 1374.''.
       (c) Other Conforming Amendments.--
       (1) Subparagraph (J) of section 26(b)(2) of the Internal 
     Revenue Code of 1986 is amended by striking ``25 percent'' 
     and inserting ``60 percent''.
       (2) Clause (i) of section 1042(c)(4)(A) of such Code is 
     amended by striking ``section 1362(d)(3)(C)'' and inserting 
     ``section 1375(b)(3)''.
       (3) Subparagraph (B) of section 1362(f)(1) of such Code is 
     amended by striking ``or (3)''.
       (4) Clause (i) of section 1375(b)(1)(A) of such Code is 
     amended by striking ``25 percent'' and inserting ``60 
     percent''.
       (5) The heading for section 1375 of such Code is amended by 
     striking ``25 percent'' and inserting ``60 percent''.
       (6) The item relating to section 1375 in the table of 
     sections for part III of subchapter S of chapter 1 of such 
     Code is amended by striking ``25 percent'' and inserting ``60 
     percent''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 203. NONRESIDENT ALIENS ALLOWED TO BE SHAREHOLDERS.

       (a) Nonresident Aliens Allowed to Be Shareholders.--
       (1) In general.--Paragraph (1) of section 1361(b) of the 
     Internal Revenue Code of 1986 (defining small business 
     corporation) is amended--
       (A) by adding ``and'' at the end of subparagraph (B),
       (B) by striking subparagraph (C), and
       (C) by redesignating subparagraph (D) as subparagraph (C).
       (2) Conforming amendments.--
       (A) Paragraph (4) and (5)(A) of section 1361(c) of such 
     Code (relating to special rules for applying subsection (b)) 
     are each amended by striking ``subsection (b)(1)(D)'' and 
     inserting ``subsection (b)(1)(C)''.
       (B) Clause (i) of section 280G(b)(5)(A) of such Code 
     (relating to general rule for exemption for small business 
     corporations, etc.) is amended by striking ``but without 
     regard to paragraph (1)(C) thereof''.
       (b) Nonresident Alien Shareholder Treated as Engaged in 
     Trade or Business Within United States.--
       (1) In general.--Section 875 of the Internal Revenue Code 
     of 1986 is amended--
       (A) by striking ``and'' at the end of paragraph (1),
       (B) by striking the period at the end of paragraph (2) and 
     inserting ``, and'', and
       (C) by adding at the end the following new paragraph:
       ``(3) a nonresident alien individual shall be considered as 
     being engaged in a trade or business within the United States 
     if the S corporation of which such individual is a 
     shareholder is so engaged.''.
       (2) Pro rata share of s corporation income.--The last 
     sentence of section 1441(b) of such Code (relating to income 
     items) is amended to read as follows: ``In the case of a 
     nonresident alien individual who is a member of a domestic 
     partnership or a shareholder of an S corporation, the items 
     of income referred to in subsection (a) shall be treated as 
     referring to items specified in this subsection included in 
     his distributive share of the income of such partnership or 
     in his

[[Page S9059]]

     pro rata share of the income of such S corporation.''.
       (3) Application of withholding tax on nonresident alien 
     shareholders.--Section 1446 of such Code (relating to 
     withholding tax on foreign partners' share of effectively 
     connected income) is amended by redesignating subsection (f) 
     as subsection (g) and by inserting after subsection (e) the 
     following new subsection:
       ``(f) S Corporation Treated as Partnership, etc.--For 
     purposes of this section--
       ``(1) an S corporation shall be treated as a partnership,
       ``(2) the shareholders of such corporation shall be treated 
     as partners of such partnership,
       ``(3) any reference to section 704 shall be treated as a 
     reference to section 1366, and
       ``(4) no withholding tax under subsection (a) shall be 
     required in the case of any income realized by such 
     corporation and allocable to a shareholder which is an 
     electing small business trust (as defined in section 
     1361(e)).''.
       (4) Conforming amendments.--
       (A) The heading of section 875 of such Code is amended to 
     read as follows:

     ``SEC. 875. PARTNERSHIPS; BENEFICIARIES OF ESTATES AND 
                   TRUSTS; S CORPORATIONS.''.

       (B) The heading of section 1446 of such Code is amended to 
     read as follows:

     ``SEC. 1446. WITHHOLDING TAX ON FOREIGN PARTNERS' AND S 
                   CORPORATION SHAREHOLDERS' SHARE OF EFFECTIVELY 
                   CONNECTED INCOME.''.

       (5) Clerical amendments.--
       (A) The item relating to section 875 in the table of 
     sections for subpart A of part II of subchapter N of chapter 
     1 of such Code is amended to read as follows:

``Sec. 875. Partnerships; beneficiaries of estates and trusts; S 
              corporations''.

       (B) The item relating to section 1446 in the table of 
     sections for subchapter A of chapter 3 of such Code is 
     amended to read as follows:

``Sec. 1446. Withholding tax on foreign partners' and S corporation 
              shareholders' share of effectively connected income''.

       (C) Permanent establishment of partners and s corporation 
     shareholders.--Section 894 of such Code (relating to income 
     affected by treaty) is amended by redesignating subsection 
     (c) as subsection (d) and by inserting after subsection (b) 
     the following new subsection:
       ``(c) Permanent Establishment of Partners and S Corporation 
     Shareholders.--If a partnership or S corporation has a 
     permanent establishment in the United States (within the 
     meaning of a treaty to which the United States is a party) at 
     any time during a taxable year of such entity, a nonresident 
     alien individual or foreign corporation which is a partner in 
     such partnership, or a nonresident alien individual who is a 
     shareholder in such S corporation, shall be treated as having 
     a permanent establishment in the United States for purposes 
     of such treaty.''.
       (c) Application of Other Withholding Tax Rules on 
     Nonresident Alien Shareholders.--
       (1) Section 1441.--Section 1441 of the Internal Revenue 
     Code of 1986 (relating to withholding of tax on nonresident 
     aliens) is amended by redesignating subsection (g) as 
     subsection (h) and by inserting after subsection (f) the 
     following new subsection:
       ``(g) S Corporation Treated as Partnership, etc.--For 
     purposes of this section--
       ``(1) an S corporation shall be treated as a partnership,
       ``(2) the shareholders of such corporation shall be treated 
     as partners of such partnership, and
       ``(3) no deduction or withholding under subsection (a) 
     shall be required in the case of any item of income realized 
     by such corporation and allocable to a shareholder which is 
     an electing small business trust (as defined in section 
     1361(e)).''.
       (2) Section 1445.--Section 1445(e) of such Code (relating 
     to special rules relating to distributions, etc., by 
     corporations, partnerships, trusts, or estates) is amended by 
     redesignating paragraph (6) as paragraph (7) and by inserting 
     after paragraph (5) the following new paragraph:
       ``(6) S corporation treated as partnership, etc.--For 
     purposes of this section--
       ``(A) an S corporation shall be treated as a partnership, 
     and
       ``(B) the shareholders of such corporation shall be treated 
     as partners of such partnership, and
       ``(C) no deduction or withholding under subsection (a) 
     shall be required in the case of any gain realized by such 
     corporation and allocable to a shareholder which is an 
     electing small business trust (as defined in section 
     1361(e)).''.
       (d) Additional Conforming Amendments.--
       (1) Section 1361(c)(2)(A)(i) of the Internal Revenue Code 
     of 1986 is amended by striking ``who is a citizen or resident 
     of the United States''.
       (2) Section 1361(d)(3)(B) of such Code is amended by 
     striking ``who is a citizen or resident of the United 
     States''.
       (3) Section 1361(e)(2) of such Code is amended by inserting 
     ``(including a nonresident alien)'' after ``person'' the 
     first place it appears.
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 204. EXPANSION OF S CORPORATION ELIGIBLE SHAREHOLDERS TO 
                   INCLUDE IRAS.

       (a) In General.--Clause (vi) of section 1361(c)(2)(A) of 
     the Internal Revenue Code of 1986 (relating to certain trusts 
     permitted as shareholders) is amended to read as follows:
       ``(vi) A trust which constitutes an individual retirement 
     account under section 408(a), including one designated as a 
     Roth IRA under section 408A.''.
       (b) Sale of Stock in IRA Relating to S Corporation Election 
     Exempt From Prohibited Transaction Rules.--Paragraph (16) of 
     section 4975(d) of the Internal Revenue Code of 1986 
     (relating to exemptions) is amended to read as follows:
       ``(16) a sale of stock held by a trust which constitutes an 
     individual retirement account under section 408(a) to the 
     individual for whose benefit such account is established if--
       ``(A) such sale is pursuant to an election under section 
     1362(a) by the issuer of such stock,
       ``(B) such sale is for fair market value at the time of 
     sale (as established by an independent appraiser) and the 
     terms of the sale are otherwise at least as favorable to such 
     trust as the terms that would apply on a sale to an unrelated 
     party,
       ``(C) such trust does not pay any commissions, costs, or 
     other expenses in connection with the sale, and
       ``(D) the stock is sold in a single transaction for cash 
     not later than 120 days after the S corporation election is 
     made.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

             TITLE III--PENSION PLAN INCENTIVES AND PARITY

     SEC. 301. CREDIT FOR QUALIFIED PENSION PLAN CONTRIBUTIONS OF 
                   SMALL EMPLOYERS.

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

     ``SEC. 45N. SMALL EMPLOYER PENSION PLAN CONTRIBUTIONS.

       ``(a) General Rule.--For purposes of section 38, in the 
     case of an eligible employer, the small employer pension plan 
     contribution credit determined under this section for any 
     taxable year is an amount equal to 50 percent of the amount 
     which would (but for subsection (f)(1)) be allowed as a 
     deduction under section 404 for such taxable year for 
     qualified employer contributions made to any qualified 
     retirement plan on behalf of any employee who is not a highly 
     compensated employee.
       ``(b) Credit Limited to 3 Years.--The credit allowable by 
     this section shall be allowed only with respect to the period 
     of 3 taxable years beginning with the first taxable year for 
     which a credit is allowable with respect to a plan under this 
     section.
       ``(c) Qualified Employer Contribution.--For purposes of 
     this section--
       ``(1) Defined contribution plans.--In the case of a defined 
     contribution plan, the term `qualified employer contribution' 
     means the amount of nonelective and matching contributions to 
     the plan made by the employer on behalf of any employee who 
     is not a highly compensated employee to the extent such 
     amount does not exceed 3 percent of such employee's 
     compensation from the employer for the year.
       ``(2) Defined benefit plans.--In the case of a defined 
     benefit plan, the term `qualified employer contribution' 
     means the amount of employer contributions to the plan made 
     on behalf of any employee who is not a highly compensated 
     employee to the extent that the accrued benefit of such 
     employee derived from employer contributions for the year 
     does not exceed the equivalent (as determined under 
     regulations prescribed by the Secretary and without regard to 
     contributions and benefits under the Social Security Act) of 
     3 percent of such employee's compensation from the employer 
     for the year.
       ``(d) Qualified Retirement Plan.--
       ``(1) In general.--The term `qualified retirement plan' 
     means any plan described in section 401(a) which includes a 
     trust exempt from tax under section 501(a) if the plan 
     meets--
       ``(A) the contribution requirements of paragraph (2),
       ``(B) the vesting requirements of paragraph (3), and
       ``(C) the distribution requirements of paragraph (4).
       ``(2) Contribution requirements.--
       ``(A) In general.--The requirements of this paragraph are 
     met if, under the plan--
       ``(i) the employer is required to make nonelective 
     contributions of at least 1 percent of compensation (or the 
     equivalent thereof in the case of a defined benefit plan) for 
     each employee who is not a highly compensated employee who is 
     eligible to participate in the plan, and
       ``(ii) allocations of nonelective employer contributions, 
     in the case of a defined contribution plan, are either in 
     equal dollar amounts for all employees covered by the plan or 
     bear a uniform relationship to the total compensation, or the 
     basic or regular rate of compensation, of the employees 
     covered by the plan (and an equivalent requirement is met 
     with respect to a defined benefit plan).

[[Page S9060]]

       ``(B) Compensation limitation.--The compensation taken into 
     account under subparagraph (A) for any year shall not exceed 
     the limitation in effect for such year under section 
     401(a)(17).
       ``(3) Vesting requirements.--The requirements of this 
     paragraph are met if the plan satisfies the requirements of 
     either of the following subparagraphs:
       ``(A) 3-year vesting.--A plan satisfies the requirements of 
     this subparagraph if an employee who has completed at least 3 
     years of service has a nonforfeitable right to 100 percent of 
     the employee's accrued benefit derived from employer 
     contributions.
       ``(B) 5-year graded vesting.--A plan satisfies the 
     requirements of this subparagraph if an employee has a 
     nonforfeitable right to a percentage of the employee's 
     accrued benefit derived from employer contributions 
     determined under the following table:

                                                     The nonforfeitable
``Years of service:                                      percentage is:
  1.............................................................20 ....

  2.............................................................40 ....

  3.............................................................60 ....

  4.............................................................80 ....

  5............................................................100.....

       ``(4) Distribution requirements.--In the case of a profit-
     sharing or stock bonus plan, the requirements of this 
     paragraph are met if, under the plan, qualified employer 
     contributions are distributable only as provided in section 
     401(k)(2)(B).
       ``(e) Other Definitions.--For purposes of this section--
       ``(1) Eligible employer.--
       ``(A) In general.--The term `eligible employer' means, with 
     respect to any year, an employer which has no more than 25 
     employees who received at least $5,000 of compensation from 
     the employer for the preceding year.
       ``(B) Requirement for new qualified employer plans.--Such 
     term shall not include an employer if, during the 3-taxable 
     year period immediately preceding the 1st taxable year for 
     which the credit under this section is otherwise allowable 
     for a qualified employer plan of the employer, the employer 
     or any member of any controlled group including the employer 
     (or any predecessor of either) established or maintained a 
     qualified employer plan with respect to which contributions 
     were made, or benefits were accrued, for substantially the 
     same employees as are in the qualified employer plan.
       ``(2) Highly compensated employee.--The term `highly 
     compensated employee' has the meaning given such term by 
     section 414(q) (determined without regard to section 
     414(q)(1)(B)(ii)).
       ``(f) Special Rules.--
       ``(1) Disallowance of deduction.--No deduction shall be 
     allowed for that portion of the qualified employer 
     contributions paid or incurred for the taxable year which is 
     equal to the credit determined under subsection (a).
       ``(2) Election not to claim credit.--This section shall not 
     apply to a taxpayer for any taxable year if such taxpayer 
     elects to have this section not apply for such taxable year.
       ``(3) Aggregation rules.--All persons treated as a single 
     employer under subsection (a) or (b) of section 52, or 
     subsection (n) or (o) of section 414, shall be treated as one 
     person. All eligible employer plans shall be treated as 1 
     eligible employer plan.
       ``(g) Recapture of Credit on Forfeited Contributions.--
       ``(1) In general.--Except as provided in paragraph (2), if 
     any accrued benefit which is forfeitable by reason of 
     subsection (d)(3) is forfeited, the employer's tax imposed by 
     this chapter for the taxable year in which the forfeiture 
     occurs shall be increased by 35 percent of the employer 
     contributions from which such benefit is derived to the 
     extent such contributions were taken into account in 
     determining the credit under this section.
       ``(2) Reallocated contributions.--Paragraph (1) shall not 
     apply to any contribution which is reallocated by the 
     employer under the plan to employees who are not highly 
     compensated employees.''.
       (b) Credit Allowed as Part of General Business Credit.--
     Section 38(b) of the Internal Revenue Code of 1986 (defining 
     current year business credit) is amended by striking ``plus'' 
     at the end of paragraph (29), by striking the period at the 
     end of paragraph (30) and inserting ``, plus'', and by adding 
     at the end the following new paragraph:
       ``(31) in the case of an eligible employer (as defined in 
     section 45E(e)), the small employer pension plan contribution 
     credit determined under section 45M(a).''
       (c) Conforming Amendments.--
       (1) Subsection (c) of section 196 of the Internal Revenue 
     Code of 1986 is amended by striking ``and'' at the end of 
     paragraph (12), by striking the period at the end of 
     paragraph (13) and inserting ``, and'', and by adding at the 
     end the following new paragraph:
       ``(14) the small employer pension plan contribution credit 
     determined under section 45E(a).''
       (2) The table of sections for subpart D of part IV of 
     subchapter A of chapter 1 of such Code is amended by adding 
     at the end the following new item:

``Sec. 45M. Small employer pension plan contributions''

       (d) Effective Date.--The amendments made by this section 
     shall apply to contributions paid or incurred in taxable 
     years beginning after December 31, 2006.

     SEC. 302. DEDUCTION FOR PENSION CONTRIBUTIONS ALLOWED IN 
                   COMPUTING NET EARNINGS FROM SELF-EMPLOYMENT.

       (a) In General.--Section 1402(a) of the Internal Revenue 
     Code of 1986 (defining net earnings from self-employment) is 
     amended by striking ``and'' at the end of paragraph (15), by 
     striking the period at the end of paragraph (16) and 
     inserting ``, and'', and by inserting after paragraph (16) 
     the following new paragraph:
       ``(17) any deduction allowed under section 404 by reason of 
     section 404(a)(8)(C) shall be allowed, except that the amount 
     of such deduction shall be determined without regard to this 
     paragraph.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2006.

                TITLE IV--HEALTH INSURANCE COSTS PARITY

     SEC. 401. DEDUCTION FOR HEALTH INSURANCE COSTS ALLOWED IN 
                   COMPUTING NET EARNINGS FROM SELF-EMPLOYMENT.

       (a) In General.--Section 1402(a) of the Internal Revenue 
     Code of 1986 (defining net earnings from self-employment), as 
     amended by section 302, is amended by striking ``and'' at the 
     end of paragraph (16), by striking the period at the end of 
     paragraph (17) and inserting ``, and'', and by inserting 
     after paragraph (17) the following new paragraph:
       ``(18) any deduction allowed under section 162(l) shall be 
     allowed.''.
       (b) Conforming Amendment.--Section 162(l) of the Internal 
     Revenue Code of 1986 (relating to special rule for health 
     insurance costs of self-employed individuals) is amended by 
     striking paragraph (4) and by redesignating paragraph (5) as 
     paragraph (4).
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2006.
                                 ______
                                 
      By Mr. FRIST (for himself, Mr. McConnell, and Mr. Inhofe):
  S. 3861. A bill to facilitate bringing to justice terrorists and 
other unlawful enemy combatants through full and fair trials by 
military commissions, and for other purposes; read the first time.
  Mr. FRIST. In 5 days we will observe the fifth anniversary of the 
most vicious act of terror ever perpetrated on American soil. Nearly 
3,000 fellow Americans lost their lives on September 11.
  We have worked tirelessly to make America safer from terrorist 
attacks and to honor the sacrifices of the victims of 9/11 and their 
families. But the fact remains that we still have more to do.
  That is why Senator McConnell and I are proud to introduce 
legislation on behalf of the President to bring terrorists to justice. 
The bill authorizes military commissions to prosecute terrorist 
detainees and addresses the concerns raised by the Supreme Court in the 
Hamdan decision.
  Today, we are a nation at war. Our enemies are terrorists who do not 
value democracy, freedom, or innocent life.
  When we capture them on the battlefield, we have a right to prosecute 
them for war crimes. And we must establish a system that protects our 
national security while ensuring a full and fair trial for the 
detainees.
  That is why it is imperative that we quickly move forward on this 
bill. By formally establishing military commissions to prosecute 
terrorist detainees, we are creating another tool in the war on 
terror--and providing a measure of justice to the victims of 9/11.
  Under these commissions, terrorist detainees will get a fair trial. 
They will be tried before impartial military judges. They will have the 
right to be presumed innocent until proven guilty, the right to 
counsel, the right to present exculpatory evidence, the right to 
exclude evidence obtained through torture or coercion, and the right to 
appeal.
  However, these procedures also recognize that because we are at war, 
we should not try terrorist detainees in the same way as our uniformed 
military or common civilian criminals. The procedures take great care 
to protect our national security interests by preventing disclosure of 
classified information to the detainees themselves.
  I urge my colleagues to review this bill carefully. I will consult 
Chairman Warner and the Armed Services Committee members to ensure the 
Senate moves expeditiously to meet its responsibility to the American 
people.
  I hope we can move forward in a spirit of bipartisanship even though 
we are in the middle of a partisan election season. And I hope we can 
remain focused on the goal of making America safer and continuing to 
honor the victims of 9/11.
  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:

[[Page S9061]]

  (The bill will be printed in a future edition of the Record.)

                          ____________________