[Congressional Record Volume 152, Number 135 (Friday, December 8, 2006)]
[House]
[Pages H9024-H9079]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
TAX RELIEF AND HEALTH CARE ACT OF 2006
Mr. THOMAS. Mr. Speaker, pursuant to House Resolution 1099, I call up
from the Speaker's table the bill (H.R. 6111) to amend the Internal
Revenue Code of 1986 to provide that the Tax Court may review claims
for equitable innocent spouse relief and to suspend the running on the
period of limitations while such claims are pending, with a Senate
amendment thereto, and ask for its immediate consideration in the
House.
The Clerk read the title of the bill.
The text of the Senate amendment is as follows:
Senate amendment
On page 3, line 17, strike ``on or''.
Motion Offered by Mr. Thomas
Mr. THOMAS. Mr. Speaker, pursuant to House Resolution 1099, I offer a
motion.
The SPEAKER pro tempore. The Clerk will designate the motion.
The text of the motion is as follows:
Motion offered by Mr. Thomas:
Mr. Thomas moves to concur in the Senate amendment with an
amendment.
The text of the House amendment to the Senate amendment is as
follows:
House amendment to Senate amendment:
Strike all after the enacting clause and insert the
following
SECTION 1. SHORT TITLE, ETC.
(a) Short Title.--This Act may be cited as the ``Tax Relief
and Health Care Act of 2006''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title, etc.
DIVISION A--EXTENSION AND EXPANSION OF CERTAIN TAX RELIEF PROVISIONS,
AND OTHER TAX PROVISIONS
Sec. 100. Reference.
TITLE I--EXTENSION AND MODIFICATION OF CERTAIN PROVISIONS
Sec. 101. Deduction for qualified tuition and related expenses.
Sec. 102. Extension and modification of new markets tax credit.
Sec. 103. Election to deduct State and local general sales taxes.
Sec. 104. Extension and modification of research credit.
Sec. 105. Work opportunity tax credit and welfare-to-work credit.
Sec. 106. Election to include combat pay as earned income for purposes
of earned income credit.
Sec. 107. Extension and modification of qualified zone academy bonds.
Sec. 108. Above-the-line deduction for certain expenses of elementary
and secondary school teachers.
Sec. 109. Extension and expansion of expensing of brownfields
remediation costs.
Sec. 110. Tax incentives for investment in the District of Columbia.
Sec. 111. Indian employment tax credit.
Sec. 112. Accelerated depreciation for business property on Indian
reservations.
Sec. 113. Fifteen-year straight-line cost recovery for qualified
leasehold improvements and qualified restaurant property.
Sec. 114. Cover over of tax on distilled spirits.
Sec. 115. Parity in application of certain limits to mental health
benefits.
Sec. 116. Corporate donations of scientific property used for research
and of computer technology and equipment.
Sec. 117. Availability of medical savings accounts.
Sec. 118. Taxable income limit on percentage depletion for oil and
natural gas produced from marginal properties.
Sec. 119. American Samoa economic development credit.
Sec. 120. Extension of bonus depreciation for certain qualified Gulf
Opportunity Zone property.
Sec. 121. Authority for undercover operations.
Sec. 122. Disclosures of certain tax return information.
Sec. 123. Special rule for elections under expired provisions.
TITLE II--ENERGY TAX PROVISIONS
Sec. 201. Credit for electricity produced from certain renewable
resources.
Sec. 202. Credit to holders of clean renewable energy bonds.
Sec. 203. Performance standards for sulfur dioxide removal in advanced
coal-based generation technology units designed to use
subbituminous coal.
Sec. 204. Deduction for energy efficient commercial buildings.
Sec. 205. Credit for new energy efficient homes.
Sec. 206. Credit for residential energy efficient property.
Sec. 207. Energy credit.
Sec. 208. Special rule for qualified methanol or ethanol fuel.
Sec. 209. Special depreciation allowance for cellulosic biomass ethanol
plant property.
Sec. 210. Expenditures permitted from the Leaking Underground Storage
Tank Trust Fund.
Sec. 211. Treatment of coke and coke gas.
TITLE III--HEALTH SAVINGS ACCOUNTS
Sec. 301. Short title.
Sec. 302. FSA and HRA terminations to fund HSAs.
Sec. 303. Repeal of annual deductible limitation on HSA contributions.
Sec. 304. Modification of cost-of-living adjustment.
Sec. 305. Contribution limitation not reduced for part-year coverage.
Sec. 306. Exception to requirement for employers to make comparable
health savings account contributions.
Sec. 307. One-time distribution from individual retirement plans to
fund HSAs.
TITLE IV--OTHER PROVISIONS
Sec. 401. Deduction allowable with respect to income attributable to
domestic production activities in Puerto Rico.
Sec. 402. Credit for prior year minimum tax liability made refundable
after period of years.
Sec. 403. Returns required in connection with certain options.
Sec. 404. Partial expensing for advanced mine safety equipment.
[[Page H9025]]
Sec. 405. Mine rescue team training tax credit.
Sec. 406. Whistleblower reforms.
Sec. 407. Frivolous tax submissions.
Sec. 408. Addition of meningococcal and human papillomavirus vaccines
to list of taxable vaccines.
Sec. 409. Clarification of taxation of certain settlement funds made
permanent.
Sec. 410. Modification of active business definition under section 355
made permanent.
Sec. 411. Revision of State veterans limit made permanent.
Sec. 412. Capital gains treatment for certain self-created musical
works made permanent.
Sec. 413. Reduction in minimum vessel tonnage which qualifies for
tonnage tax made permanent.
Sec. 414. Modification of special arbitrage rule for certain funds made
permanent.
Sec. 415. Great Lakes domestic shipping to not disqualify vessel from
tonnage tax.
Sec. 416. Use of qualified mortgage bonds to finance residences for
veterans without regard to first-time homebuyer
requirement.
Sec. 417. Exclusion of gain from sale of a principal residence by
certain employees of the intelligence community.
Sec. 418. Sale of property by judicial officers.
Sec. 419. Premiums for mortgage insurance.
Sec. 420. Modification of refunds for kerosene used in aviation.
Sec. 421. Regional income tax agencies treated as States for purposes
of confidentiality and disclosure requirements.
Sec. 422. Designation of wines by semi-generic names.
Sec. 423. Modification of railroad track maintenance credit.
Sec. 424. Modification of excise tax on unrelated business taxable
income of charitable remainder trusts.
Sec. 425. Loans to qualified continuing care facilities made permanent.
Sec. 426. Technical corrections.
DIVISION B--MEDICARE AND OTHER HEALTH PROVISIONS
Sec. 1. Short title of division.
TITLE I--MEDICARE IMPROVED QUALITY AND PROVIDER PAYMENTS
Sec. 101. Physician payment and quality improvement.
Sec. 102. Extension of floor on Medicare work geographic adjustment.
Sec. 103. Update to the composite rate component of the basic case-mix
adjusted prospective payment system for dialysis
services.
Sec. 104. Extension of treatment of certain physician pathology
services under Medicare.
Sec. 105. Extension of Medicare reasonable costs payments for certain
clinical diagnostic laboratory tests furnished to
hospital patients in certain rural areas.
Sec. 106. Hospital Medicare reports and clarifications.
Sec. 107. Payment for brachytherapy.
Sec. 108. Payment process under the competitive acquisition program
(CAP).
Sec. 109. Quality reporting for hospital outpatient services and
ambulatory surgical center services.
Sec. 110. Reporting of anemia quality indicators for Medicare part B
cancer anti-anemia drugs.
Sec. 111. Clarification of hospice satellite designation.
TITLE II--MEDICARE BENEFICIARY PROTECTIONS
Sec. 201. Extension of exceptions process for Medicare therapy caps.
Sec. 202. Payment for administration of part D vaccines.
Sec. 203. OIG study of never events.
Sec. 204. Medicare medical home demonstration project.
Sec. 205. Medicare DRA technical corrections.
Sec. 206. Limited continuous open enrollment of original medicare fee-
for-service enrollees into Medicare Advantage non-
prescription drug plans.
TITLE III--MEDICARE PROGRAM INTEGRITY EFFORTS
Sec. 301. Offsetting adjustment in Medicare Advantage Stabilization
Fund.
Sec. 302. Extension and expansion of recovery audit contractor program
under the Medicare Integrity Program.
Sec. 303. Funding for the Health Care Fraud and Abuse Control Account.
Sec. 304. Implementation funding.
TITLE IV--MEDICAID AND OTHER HEALTH PROVISIONS
Sec. 401. Extension of Transitional Medical Assistance (TMA) and
abstinence education program.
Sec. 402. Grants for research on vaccine against Valley Fever.
Sec. 403. Change in threshold for Medicaid indirect hold harmless
provision of broad-based health care taxes.
Sec. 404. DSH allotments for fiscal year 2007 for Tennessee and Hawaii.
Sec. 405. Certain Medicaid DRA technical corrections.
DIVISION C--OTHER PROVISIONS
TITLE I--GULF OF MEXICO ENERGY SECURITY
Sec. 101. Short title.
Sec. 102. Definitions.
Sec. 103. Offshore oil and gas leasing in 181 Area and 181 south Area
of Gulf of Mexico.
Sec. 104. Moratorium on oil and gas leasing in certain areas of Gulf of
Mexico.
Sec. 105. Disposition of qualified outer Continental Shelf revenues
from 181 Area, 181 south Area, and 2002-2007 planning
areas of Gulf of Mexico.
TITLE II--SURFACE MINING CONTROL AND RECLAMATION ACT AMENDMENTS OF 2006
Sec. 200. Short title.
Subtitle A--Mining Control and Reclamation
Sec. 201. Abandoned Mine Reclamation Fund and purposes.
Sec. 202. Reclamation fee.
Sec. 203. Objectives of Fund.
Sec. 204. Reclamation of rural land.
Sec. 205. Liens.
Sec. 206. Certification.
Sec. 207. Remining incentives.
Sec. 208. Extension of limitation on application of prohibition on
issuance of permit.
Sec. 209. Tribal regulation of surface coal mining and reclamation
operations.
Subtitle B--Coal Industry Retiree Health Benefit Act
Sec. 211. Certain related persons and successors in interest relieved
of liability if premiums prepaid.
Sec. 212. Transfers to funds; premium relief.
Sec. 213. Other provisions.
TITLE III--WHITE PINE COUNTY CONSERVATION, RECREATION, AND DEVELOPMENT
Sec. 301. Authorization of appropriations.
Sec. 302. Short title.
Sec. 303. Definitions.
Subtitle A--Land Disposal
Sec. 311. Conveyance of White Pine County, Nevada, land.
Sec. 312. Disposition of proceeds.
Subtitle B--Wilderness Areas
Sec. 321. Short title.
Sec. 322. Findings.
Sec. 323. Additions to National Wilderness Preservation System.
Sec. 324. Administration.
Sec. 325. Adjacent management.
Sec. 326. Military overflights.
Sec. 327. Native American cultural and religious uses.
Sec. 328. Release of wilderness study areas.
Sec. 329. Wildlife management.
Sec. 330. Wildfire, insect, and disease management.
Sec. 331. Climatological data collection.
Subtitle C--Transfers of Administrative Jurisdiction
Sec. 341. Transfer to the United States Fish and Wildlife Service.
Sec. 342. Transfer to the Bureau of Land Management.
Sec. 343. Transfer to the Forest Service.
Sec. 344. Availability of map and legal descriptions.
Subtitle D--Public Conveyances
Sec. 351. Conveyance to the State of Nevada.
Sec. 352. Conveyance to White Pine County, Nevada.
Subtitle E--Silver State Off-Highway Vehicle Trail
Sec. 355. Silver State off-highway vehicle trail.
Subtitle F--Transfer of Land to Be Held in Trust for the Ely Shoshone
Tribe.
Sec. 361. Transfer of land to be held in trust for the Ely Shoshone
Tribe.
Subtitle G--Eastern Nevada Landscape Restoration Project.
Sec. 371. Findings; purposes.
Sec. 372. Definitions.
Sec. 373. Restoration project.
Subtitle H--Amendments to the Southern Nevada Public Land Management
Act of 1998
Sec. 381. Findings.
Sec. 382. Availability of special account.
Subtitle I--Amendments to the Lincoln County Conservation, Recreation,
and Development Act of 2004
Sec. 391. Disposition of proceeds.
Subtitle J--All American Canal Projects
Sec. 395. All American Canal Lining Project.
Sec. 396. Regulated storage water facility.
Sec. 397. Application of law.
TITLE IV--OTHER PROVISIONS
Sec. 401. Tobacco personal use quantity exception to not apply to
delivery sales.
Sec. 402. Ethanol Tariff Schedule.
Sec. 403. Withdrawal of certain Federal land and interests in certain
Federal land from location, entry, and patent under the
mining laws and disposition under the mineral and
geothermal leasing laws.
Sec. 404. Continuing eligibility for certain students under District of
Columbia School Choice Program.
Sec. 405. Study on Establishing Uniform National Database on Elder
Abuse.
[[Page H9026]]
Sec. 406. Temporary duty reductions for certain cotton shirting fabric.
Sec. 407. Cotton Trust Fund.
Sec. 408. Tax court review of requests for equitable relief from joint
and several liability.
DIVISION A--EXTENSION AND EXPANSION OF CERTAIN TAX RELIEF PROVISIONS,
AND OTHER TAX PROVISIONS
SEC. 100. REFERENCE.
Except as otherwise expressly provided, whenever in this
division an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the
reference shall be considered to be made to a section or
other provision of the Internal Revenue Code of 1986.
TITLE I--EXTENSION AND MODIFICATION OF CERTAIN PROVISIONS
SEC. 101. DEDUCTION FOR QUALIFIED TUITION AND RELATED
EXPENSES.
(a) In General.--Section 222(e) is amended by striking
``2005''and inserting ``2007''.
(b) Conforming Amendments.--Section 222(b)(2)(B) is
amended--
(1) by striking ``a taxable year beginning in 2004 or
2005'' and inserting ``any taxable year beginning after
2003'', and
(2) by striking ``2004 and 2005'' in the heading and
inserting ``After 2003''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2005.
SEC. 102. EXTENSION AND MODIFICATION OF NEW MARKETS TAX
CREDIT.
(a) Extension.--Section 45D(f)(1)(D) is amended by striking
``and 2007'' and inserting ``, 2007, and 2008''.
(b) Regulations Regarding Non-Metropolitan Counties.--
Section 45D(i) is amended by striking ``and'' at the end of
paragraph (4), by striking the period at the end of paragraph
(5) and inserting ``, and'', and by adding at the end the
following new paragraph:
``(6) which ensure that non-metropolitan counties receive a
proportional allocation of qualified equity investments.''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 103. ELECTION TO DEDUCT STATE AND LOCAL GENERAL SALES
TAXES.
(a) In General.--Section 164(b)(5)(I) is amended by
striking ``2006'' and inserting ``2008''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2005.
SEC. 104. EXTENSION AND MODIFICATION OF RESEARCH CREDIT.
(a) Extension.--
(1) In general.--Section 41(h)(1)(B) is amended by striking
``2005'' and inserting ``2007''.
(2) Conforming amendment.--Section 45C(b)(1)(D) is amended
by striking ``2005'' and inserting ``2007''.
(3) Effective date.--The amendments made by this subsection
shall apply to amounts paid or incurred after December 31,
2005.
(b) Increase in Rates of Alternative Incremental Credit.--
(1) In general.--Subparagraph (A) of section 41(c)(4)
(relating to election of alternative incremental credit) is
amended--
(A) by striking ``2.65 percent'' and inserting ``3
percent'',
(B) by striking ``3.2 percent'' and inserting ``4
percent'', and
(C) by striking ``3.75 percent'' and inserting ``5
percent''.
(2) Effective date.--Except as provided in paragraph (3),
the amendments made by this subsection shall apply to taxable
years ending after December 31, 2006.
(3) Transition rule.--
(A) In general.--In the case of a specified transitional
taxable year for which an election under section 41(c)(4) of
the Internal Revenue Code of 1986 applies, the credit
determined under section 41(a)(1) of such Code shall be equal
to the sum of--
(i) the applicable 2006 percentage multiplied by the amount
determined under section 41(c)(4)(A) of such Code (as in
effect for taxable years ending on December 31, 2006), plus
(ii) the applicable 2007 percentage multiplied by the
amount determined under section 41(c)(4)(A) of such Code (as
in effect for taxable years ending on January 1, 2007).
(B) Definitions.--For purposes of subparagraph (A)--
(i) Specified transitional taxable year.--The term
``specified transitional taxable year'' means any taxable
year which ends after December 31, 2006, and which includes
such date.
(ii) Applicable 2006 percentage.--The term ``applicable
2006 percentage'' means the number of days in the specified
transitional taxable year before January 1, 2007, divided by
the number of days in such taxable year.
(iii) Applicable 2007 percentage.--The term ``applicable
2007 percentage'' means the number of days in the specified
transitional taxable year after December 31, 2006, divided by
the number of days in such taxable year.
(c) Alternative Simplified Credit for Qualified Research
Expenses.--
(1) In general.--Subsection (c) of section 41 (relating to
base amount) is amended by redesignating paragraphs (5) and
(6) as paragraphs (6) and (7), respectively, and by inserting
after paragraph (4) the following new paragraph:
``(5) Election of alternative simplified credit.--
``(A) In general.--At the election of the taxpayer, the
credit determined under subsection (a)(1) shall be equal to
12 percent of so much of the qualified research expenses for
the taxable year as exceeds 50 percent of the average
qualified research expenses for the 3 taxable years preceding
the taxable year for which the credit is being determined.
``(B) Special rule in case of no qualified research
expenses in any of 3 preceding taxable years.--
``(i) Taxpayers to which subparagraph applies.--The credit
under this paragraph shall be determined under this
subparagraph if the taxpayer has no qualified research
expenses in any one of the 3 taxable years preceding the
taxable year for which the credit is being determined.
``(ii) Credit rate.--The credit determined under this
subparagraph shall be equal to 6 percent of the qualified
research expenses for the taxable year.
``(C) Election.--An election under this paragraph shall
apply to the taxable year for which made and all succeeding
taxable years unless revoked with the consent of the
Secretary. An election under this paragraph may not be made
for any taxable year to which an election under paragraph (4)
applies.''.
(2) Transition rule for deemed revocation of election of
alternative incremental credit.--In the case of an election
under section 41(c)(4) of the Internal Revenue Code of 1986
which applies to the taxable year which includes January 1,
2007, such election shall be treated as revoked with the
consent of the Secretary of the Treasury if the taxpayer
makes an election under section 41(c)(5) of such Code (as
added by this subsection) for such year.
(3) Effective date.--Except as provided in paragraph (4),
the amendments made by this subsection shall apply to taxable
years ending after December 31, 2006.
(4) Transition rule for noncalendar taxable years.--
(A) In general.--In the case of a specified transitional
taxable year for which an election under section 41(c)(5) of
the Internal Revenue Code of 1986 (as added by this
subsection) applies, the credit determined under section
41(a)(1) of such Code shall be equal to the sum of--
(i) the applicable 2006 percentage multiplied by the amount
determined under section 41(a)(1) of such Code (as in effect
for taxable years ending on December 31, 2006), plus
(ii) the applicable 2007 percentage multiplied by the
amount determined under section 41(c)(5) of such Code (as in
effect for taxable years ending on January 1, 2007).
(B) Definitions and special rules.--For purposes of
subparagraph (A)--
(i) Definitions.--Terms used in this paragraph which are
also used in subsection (b)(3) shall have the respective
meanings given such terms in such subsection.
(ii) Dual elections permitted.--Elections under paragraphs
(4) and (5) of section 41(c) of such Code may both apply for
the specified transitional taxable year.
(iii) Deferral of deemed election revocation.--Any election
under section 41(c)(4) of the Internal Revenue Code of 1986
treated as revoked under paragraph (2) shall be treated as
revoked for the taxable year after the specified transitional
taxable year.
SEC. 105. WORK OPPORTUNITY TAX CREDIT AND WELFARE-TO-WORK
CREDIT.
(a) In General.--Sections 51(c)(4)(B) and 51A(f) are each
amended by striking ``2005'' and inserting ``2007''.
(b) Eligibility of Ex-Felons Determined Without Regard to
Family Income.--Paragraph (4) of section 51(d) is amended by
adding ``and'' at the end of subparagraph (A), by striking
``, and'' at the end of subparagraph (B) and inserting a
period, and by striking all that follows subparagraph (B).
(c) Increase in Maximum Age for Eligibility of Food Stamp
Recipients.--Clause (i) of section 51(d)(8)(A) is amended by
striking ``25'' and inserting ``40''.
(d) Extension of Paperwork Filing Deadline.--Section
51(d)(12)(A)(ii)(II) is amended by striking ``21st day'' and
inserting ``28th day''.
(e) Consolidation of Work Opportunity Credit With Welfare-
to-Work Credit.--
(1) In general.--Paragraph (1) of section 51(d) is amended
by striking ``or'' at the end of subparagraph (G), by
striking the period at the end of subparagraph (H) and
inserting ``, or'', and by adding at the end the following
new subparagraph:
``(I) a long-term family assistance recipient.''.
(2) Long-term family assistance recipient.--Subsection (d)
of section 51 is amended by redesignating paragraphs (10)
through (12) as paragraphs (11) through (13), respectively,
and by inserting after paragraph (9) the following new
paragraph:
``(10) Long-term family assistance recipient.--The term
`long-term family assistance recipient' means any individual
who is certified by the designated local agency--
``(A) as being a member of a family receiving assistance
under a IV-A program (as defined in paragraph (2)(B)) for at
least the 18-month period ending on the hiring date,
``(B)(i) as being a member of a family receiving such
assistance for 18 months beginning after August 5, 1997, and
``(ii) as having a hiring date which is not more than 2
years after the end of the earliest such 18-month period, or
``(C)(i) as being a member of a family which ceased to be
eligible for such assistance by reason of any limitation
imposed by
[[Page H9027]]
Federal or State law on the maximum period such assistance is
payable to a family, and
``(ii) as having a hiring date which is not more than 2
years after the date of such cessation.''.
(3) Increased credit for employment of long-term family
assistance recipients.--Section 51 is amended by inserting
after subsection (d) the following new subsection:
``(e) Credit for Second-Year Wages for Employment of Long-
Term Family Assistance Recipients.--
``(1) In general.--With respect to the employment of a
long-term family assistance recipient--
``(A) the amount of the work opportunity credit determined
under this section for the taxable year shall include 50
percent of the qualified second-year wages for such year, and
``(B) in lieu of applying subsection (b)(3), the amount of
the qualified first-year wages, and the amount of qualified
second-year wages, which may be taken into account with
respect to such a recipient shall not exceed $10,000 per
year.
``(2) Qualified second-year wages.--For purposes of this
subsection, the term `qualified second-year wages' means
qualified wages--
``(A) which are paid to a long-term family assistance
recipient, and
``(B) which are attributable to service rendered during the
1-year period beginning on the day after the last day of the
1-year period with respect to such recipient determined under
subsection (b)(2).
``(3) Special rules for agricultural and railway labor.--If
such recipient is an employee to whom subparagraph (A) or (B)
of subsection (h)(1) applies, rules similar to the rules of
such subparagraphs shall apply except that--
``(A) such subparagraph (A) shall be applied by
substituting `$10,000' for `$6,000', and
``(B) such subparagraph (B) shall be applied by
substituting `$833.33' for `$500'.''.
(4) Repeal of separate welfare-to-work credit.--
(A) In general.--Section 51A is hereby repealed.
(B) Clerical amendment.--The table of sections for subpart
F of part IV of subchapter A of chapter 1 is amended by
striking the item relating to section 51A.
(f) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to individuals
who begin work for the employer after December 31, 2005.
(2) Consolidation.--The amendments made by subsections (b),
(c), (d), and (e) shall apply to individuals who begin work
for the employer after December 31, 2006.
SEC. 106. ELECTION TO INCLUDE COMBAT PAY AS EARNED INCOME FOR
PURPOSES OF EARNED INCOME CREDIT.
(a) In General.--Section 32(c)(2)(B)(vi)(II) is amended by
striking ``2007'' and inserting ``2008''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2006.
SEC. 107. EXTENSION AND MODIFICATION OF QUALIFIED ZONE
ACADEMY BONDS.
(a) In General.--Paragraph (1) of section 1397E(e) is
amended by striking ``and 2005'' and inserting ``2005, 2006,
and 2007''.
(b) Special Rules Relating to Expenditures, Arbitrage, and
Reporting.--
(1) In general.--Section 1397E is amended--
(A) in subsection (d)(1), by striking ``and'' at the end of
subparagraph (C)(iii), by striking the period at the end of
subparagraph (D) and inserting ``, and'', and by adding at
the end the following new subparagraph:
``(E) the issue meets the requirements of subsections (f),
(g), and (h).'', and
(B) by redesignating subsections (f), (g), (h), and (i) as
subsection (i), (j), (k), and (l), respectively, and by
inserting after subsection (e) the following new subsections:
``(f) Special Rules Relating to Expenditures.--
``(1) In general.--An issue shall be treated as meeting the
requirements of this subsection if, as of the date of
issuance, the issuer reasonably expects--
``(A) at least 95 percent of the proceeds from the sale of
the issue are to be spent for 1 or more qualified purposes
with respect to qualified zone academies within the 5-year
period beginning on the date of issuance of the qualified
zone academy bond,
``(B) a binding commitment with a third party to spend at
least 10 percent of the proceeds from the sale of the issue
will be incurred within the 6-month period beginning on the
date of issuance of the qualified zone academy bond, and
``(C) such purposes will be completed with due diligence
and the proceeds from the sale of the issue will be spent
with due diligence.
``(2) Extension of period.--Upon submission of a request
prior to the expiration of the period described in paragraph
(1)(A), the Secretary may extend such period if the issuer
establishes that the failure to satisfy the 5-year
requirement is due to reasonable cause and the related
purposes will continue to proceed with due diligence.
``(3) Failure to spend required amount of bond proceeds
within 5 years.--To the extent that less than 95 percent of
the proceeds of such issue are expended by the close of the
5-year period beginning on the date of issuance (or if an
extension has been obtained under paragraph (2), by the close
of the extended period), the issuer shall redeem all of the
nonqualified bonds within 90 days after the end of such
period. For purposes of this paragraph, the amount of the
nonqualified bonds required to be redeemed shall be
determined in the same manner as under section 142.
``(g) Special Rules Relating to Arbitrage.--An issue shall
be treated as meeting the requirements of this subsection if
the issuer satisfies the arbitrage requirements of section
148 with respect to proceeds of the issue.
``(h) Reporting.--Issuers of qualified academy zone bonds
shall submit reports similar to the reports required under
section 149(e).''.
(2) Conforming amendments.--Sections 54(l)(3)(B) and
1400N(l)(7)(B)(ii) are each amended by striking ``section
1397E(i)'' and inserting ``section 1397E(l)''.
(c) Effective Dates.--
(1) Extension.--The amendment made by subsection (a) shall
apply to obligations issued after December 31, 2005.
(2) Special rules.--The amendments made by subsection (b)
shall apply to obligations issued after the date of the
enactment of this Act pursuant to allocations of the national
zone academy bond limitation for calendar years after 2005.
SEC. 108. ABOVE-THE-LINE DEDUCTION FOR CERTAIN EXPENSES OF
ELEMENTARY AND SECONDARY SCHOOL TEACHERS.
(a) In General.--Subparagraph (D) of section 62(a)(2) is
amended by striking ``or 2005'' and inserting ``2005, 2006,
or 2007''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2005.
SEC. 109. EXTENSION AND EXPANSION OF EXPENSING OF BROWNFIELDS
REMEDIATION COSTS.
(a) Extension.--Subsection (h) of section 198 is amended by
striking ``2005'' and inserting ``2007''.
(b) Expansion.--Section 198(d)(1) (defining hazardous
substance) is amended by striking ``and'' at the end of
subparagraph (A), by striking the period at the end of
subparagraph (B) and inserting ``, and'', and by adding at
the end the following new subparagraph:
``(C) any petroleum product (as defined in section
4612(a)(3)).''.
(c) Effective Date.--The amendments made by this section
shall apply to expenditures paid or incurred after December
31, 2005.
SEC. 110. TAX INCENTIVES FOR INVESTMENT IN THE DISTRICT OF
COLUMBIA.
(a) Designation of Zone.--
(1) In general.--Subsection (f) of section 1400 is amended
by striking ``2005'' both places it appears and inserting
``2007''.
(2) Effective date.--The amendments made by this subsection
shall apply to periods beginning after December 31, 2005.
(b) Tax-Exempt Economic Development Bonds.--
(1) In general.--Subsection (b) of section 1400A is amended
by striking ``2005'' and inserting ``2007''.
(2) Effective date.--The amendment made by this subsection
shall apply to bonds issued after December 31, 2005.
(c) Zero Percent Capital Gains Rate.--
(1) In general.--Subsection (b) of section 1400B is amended
by striking ``2006'' each place it appears and inserting
``2008''.
(2) Conforming amendments.--
(A) Section 1400B(e)(2) is amended--
(i) by striking ``2010'' and inserting ``2012'', and
(ii) by striking ``2010'' in the heading thereof and
inserting ``2012''.
(B) Section 1400B(g)(2) is amended by striking ``2010'' and
inserting ``2012''.
(C) Section 1400F(d) is amended by striking ``2010'' and
inserting ``2012''.
(3) Effective dates.--
(A) Extension.--The amendments made by paragraph (1) shall
apply to acquisitions after December 31, 2005.
(B) Conforming amendments.--The amendments made by
paragraph (2) shall take effect on the date of the enactment
of this Act.
(d) First-Time Homebuyer Credit.--
(1) In general.--Subsection (i) of section 1400C is amended
by striking ``2006'' and inserting ``2008''.
(2) Effective date.--The amendment made by this subsection
shall apply to property purchased after December 31, 2005.
SEC. 111. INDIAN EMPLOYMENT TAX CREDIT.
(a) In General.--Section 45A(f) is amended by striking
``2005'' and inserting ``2007''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2005.
SEC. 112. ACCELERATED DEPRECIATION FOR BUSINESS PROPERTY ON
INDIAN RESERVATIONS.
(a) In General.--Section 168(j)(8) is amended by striking
``2005'' and inserting ``2007''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2005.
SEC. 113. FIFTEEN-YEAR STRAIGHT-LINE COST RECOVERY FOR
QUALIFIED LEASEHOLD IMPROVEMENTS AND QUALIFIED
RESTAURANT PROPERTY.
(a) In General.--Clauses (iv) and (v) of section
168(e)(3)(E) are each amended by striking ``2006'' and
inserting ``2008''.
(b) Effective Date.--The amendments made by subsection (a)
shall apply to property placed in service after December 31,
2005.
SEC. 114. COVER OVER OF TAX ON DISTILLED SPIRITS.
(a) In General.--Section 7652(f)(1) is amended by striking
``2006'' and inserting ``2008''.
[[Page H9028]]
(b) Effective Date.--The amendment made by subsection (a)
shall apply to articles brought into the United States after
December 31, 2005.
SEC. 115. PARITY IN APPLICATION OF CERTAIN LIMITS TO MENTAL
HEALTH BENEFITS.
(a) Amendment to the Internal Revenue Code of 1986.--
Section 9812(f)(3) is amended by striking ``2006'' and
inserting ``2007''.
(b) Amendment to the Employee Retirement Income Security
Act of 1974.--Section 712(f) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1185a(f)) is amended
by striking ``2006'' and inserting ``2007''.
(c) Amendment to the Public Health Service Act.--Section
2705(f) of the Public Health Service Act (42 U.S.C. 300gg-
5(f)) is amended by striking ``2006''and inserting ``2007''.
SEC. 116. CORPORATE DONATIONS OF SCIENTIFIC PROPERTY USED FOR
RESEARCH AND OF COMPUTER TECHNOLOGY AND
EQUIPMENT.
(a) Extension of Computer Technology and Equipment
Donation.--
(1) In general.--Section 170(e)(6)(G) is amended by
striking ``2005'' and inserting ``2007''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply to contributions made in taxable years beginning
after December 31, 2005.
(b) Expansion of Charitable Contribution Allowed for
Scientific Property Used for Research and for Computer
Technology and Equipment Used for Educational Purposes.--
(1) Scientific property used for research.--
(A) In general.--Clause (ii) of section 170(e)(4)(B)
(defining qualified research contributions) is amended by
inserting ``or assembled'' after ``constructed''.
(B) Conforming amendment.--Clause (iii) of section
170(e)(4)(B) is amended by inserting ``or assembly'' after
``construction''.
(2) Computer technology and equipment for educational
purposes.--
(A) In general.--Clause (ii) of section 170(e)(6)(B) is
amended by inserting ``or assembled'' after ``constructed''
and ``or assembling'' after ``construction''.
(B) Conforming amendment.--Subparagraph (D) of section
170(e)(6) is amended by inserting ``or assembled'' after
``constructed'' and ``or assembly'' after ``construction''.
(3) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31,
2005.
SEC. 117. AVAILABILITY OF MEDICAL SAVINGS ACCOUNTS.
(a) In General.--Paragraphs (2) and (3)(B) of section
220(i) are each amended by striking ``2005'' each place it
appears in the text and headings and inserting ``2007''.
(b) Conforming Amendments.--
(1) Paragraph (2) of section 220(j) is amended--
(A) in the text by striking ``or 2004'' each place it
appears and inserting ``2004, 2005, or 2006'', and
(B) in the heading by striking ``or 2004'' and inserting
``2004, 2005, or 2006'' .
(2) Subparagraph (A) of section 220(j)(4) is amended by
striking ``and 2004'' and inserting ``2004, 2005, and 2006''.
(c) Time for Filing Reports, etc.--
(1) The report required by section 220(j)(4) of the
Internal Revenue Code of 1986 to be made on August 1, 2005,
or August 1, 2006, as the case may be, shall be treated as
timely if made before the close of the 90-day period
beginning on the date of the enactment of this Act.
(2) The determination and publication required by section
220(j)(5) of such Code with respect to calendar year 2005 or
calendar year 2006, as the case may be, shall be treated as
timely if made before the close of the 120-day period
beginning on the date of the enactment of this Act. If the
determination under the preceding sentence is that 2005 or
2006 is a cut-off year under section 220(i) of such Code, the
cut-off date under such section 220(i) shall be the last day
of such 120-day period.
SEC. 118. TAXABLE INCOME LIMIT ON PERCENTAGE DEPLETION FOR
OIL AND NATURAL GAS PRODUCED FROM MARGINAL
PROPERTIES.
(a) In General.--Section 613A(c)(6)(H) is amended by
striking ``2006'' and inserting ``2008''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to taxable years beginning after December 31,
2005.
SEC. 119. AMERICAN SAMOA ECONOMIC DEVELOPMENT CREDIT.
(a) In General.--For purposes of section 30A of the
Internal Revenue Code of 1986, a domestic corporation shall
be treated as a qualified domestic corporation to which such
section applies if such corporation--
(1) is an existing credit claimant with respect to American
Samoa, and
(2) elected the application of section 936 of the Internal
Revenue Code of 1986 for its last taxable year beginning
before January 1, 2006.
(b) Special Rules for Application of Section.--The
following rules shall apply in applying section 30A of the
Internal Revenue Code of 1986 for purposes of this section:
(1) Amount of credit.--Notwithstanding section 30A(a)(1) of
such Code, the amount of the credit determined under section
30A(a)(1) of such Code for any taxable year shall be the
amount determined under section 30A(d) of such Code, except
that section 30A(d) shall be applied without regard to
paragraph (3) thereof.
(2) Separate application.--In applying section 30A(a)(3) of
such Code in the case of a corporation treated as a qualified
domestic corporation by reason of this section, section 30A
of such Code (and so much of section 936 of such Code as
relates to such section 30A) shall be applied separately with
respect to American Samoa.
(3) Foreign tax credit allowed.--Notwithstanding section
30A(e) of such Code, the provisions of section 936(c) of such
Code shall not apply with respect to the credit allowed by
reason of this section.
(c) Definitions.--For purposes of this section, any term
which is used in this section which is also used in section
30A or 936 of such Code shall have the same meaning given
such term by such section 30A or 936.
(d) Application of Section.--Notwithstanding section 30A(h)
or section 936(j) of such Code, this section (and so much of
section 30A and section 936 of such Code as relates to this
section) shall apply to the first two taxable years of a
corporation to which subsection (a) applies which begin after
December 31, 2005, and before January 1, 2008.
SEC. 120. EXTENSION OF BONUS DEPRECIATION FOR CERTAIN
QUALIFIED GULF OPPORTUNITY ZONE PROPERTY.
(a) In General.--Subsection (d) of section 1400N is amended
by adding at the end the following new paragraph:
``(6) Extension for certain property.--
``(A) In general.--In the case of any specified Gulf
Opportunity Zone extension property, paragraph (2)(A) shall
be applied without regard to clause (v) thereof.
``(B) Specified gulf opportunity zone extension property.--
For purposes of this paragraph, the term `specified Gulf
Opportunity Zone extension property' means property--
``(i) substantially all of the use of which is in one or
more specified portions of the GO Zone, and
``(ii) which is--
``(I) nonresidential real property or residential rental
property which is placed in service by the taxpayer on or
before December 31, 2010, or
``(II) in the case of a taxpayer who places a building
described in subclause (I) in service on or before December
31, 2010, property described in section 168(k)(2)(A)(i) if
substantially all of the use of such property is in such
building and such property is placed in service by the
taxpayer not later than 90 days after such building is placed
in service.
``(C) Specified portions of the go zone.--For purposes of
this paragraph, the term `specified portions of the GO Zone'
means those portions of the GO Zone which are in any county
or parish which is identified by the Secretary as being a
county or parish in which hurricanes occurring during 2005
damaged (in the aggregate) more than 60 percent of the
housing units in such county or parish which were occupied
(determined according to the 2000 Census).
``(D) Only pre-january 1, 2010, basis of real property
eligible for additional allowance.--In the case of property
which is qualified Gulf Opportunity Zone property solely by
reason of subparagraph (B)(ii)(I), paragraph (1) shall apply
only to the extent of the adjusted basis thereof attributable
to manufacture, construction, or production before January 1,
2010.''.
(b) Extension Not Applicable to Increased Section 179
Expensing.--Paragraph (2) of section 1400N(e) is amended by
inserting ``without regard to subsection (d)(6)'' after
``subsection (d)(2)''.
(c) Effective Date.--The amendments made by this section
shall take effect as if included in section 101 of the Gulf
Opportunity Zone Act of 2005.
SEC. 121. AUTHORITY FOR UNDERCOVER OPERATIONS.
Paragraph (6) of section 7608(c) (relating to application
of section) is amended by striking ``2007'' both places it
appears and inserting ``2008''.
SEC. 122. DISCLOSURES OF CERTAIN TAX RETURN INFORMATION.
(a) Disclosures to Facilitate Combined Employment Tax
Reporting.--
(1) In general.--Subparagraph (B) of section 6103(d)(5)
(relating to termination) is amended by striking ``2006'' and
inserting ``2007''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply to disclosures after December 31, 2006.
(b) Disclosures Relating to Terrorist Activities.--
(1) In general.--Clause (iv) of section 6103(i)(3)(C) and
subparagraph (E) of section 6103(i)(7) are each amended by
striking ``2006'' and inserting ``2007''.
(2) Effective date.--The amendments made by paragraph (1)
shall apply to disclosures after December 31, 2006.
(c) Disclosures Relating to Student Loans.--
(1) In general.--Subparagraph (D) of section 6103(l)(13)
(relating to termination) is amended by striking ``2006'' and
inserting ``2007''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply to requests made after December 31, 2006.
SEC. 123. SPECIAL RULE FOR ELECTIONS UNDER EXPIRED
PROVISIONS.
(a) Research Credit Elections.--In the case of any taxable
year ending after December 31, 2005, and before the date of
the enactment of this Act, any election under section
41(c)(4) or section 280C(c)(3)(C) of the Internal Revenue
Code of 1986 shall be treated as
[[Page H9029]]
having been timely made for such taxable year if such
election is made not later than the later of April 15, 2007,
or such time as the Secretary of the Treasury, or his
designee, may specify. Such election shall be made in the
manner prescribed by such Secretary or designee.
(b) Other Elections.--Except as otherwise provided by such
Secretary or designee, a rule similar to the rule of
subsection (a) shall apply with respect to elections under
any other expired provision of the Internal Revenue Code of
1986 the applicability of which is extended by reason of the
amendments made by this title.
TITLE II--ENERGY TAX PROVISIONS
SEC. 201. CREDIT FOR ELECTRICITY PRODUCED FROM CERTAIN
RENEWABLE RESOURCES.
Subsection (d) of section 45 is amended by striking
``January 1, 2008'' each place it appears and inserting
``January 1, 2009''.
SEC. 202. CREDIT TO HOLDERS OF CLEAN RENEWABLE ENERGY BONDS.
(a) In General.--Section 54 is amended--
(1) by striking ``$800,000,000'' in subsection (f)(1) and
inserting ``$1,200,000,000'',
(2) by striking ``$500,000,000'' in subsection (f)(2) and
inserting ``$750,000,000'', and
(3) by striking ``December 31, 2007'' in subsection (m) and
inserting ``December 31, 2008''.
(b) Effective Dates.--
(1) In general.--The amendments made by paragraphs (1) and
(3) of subsection (a) shall apply to bonds issued after
December 31, 2006.
(2) Allocations.--The amendment made by subsection (a)(2)
shall apply to allocations or reallocations after December
31, 2006.
SEC. 203. PERFORMANCE STANDARDS FOR SULFUR DIOXIDE REMOVAL IN
ADVANCED COAL-BASED GENERATION TECHNOLOGY UNITS
DESIGNED TO USE SUBBITUMINOUS COAL.
(a) In General.--Paragraph (1) of section 48A(f) (relating
to advanced coal-based generation technology) is amended by
adding at the end the following new flush sentence:
``For purposes of the performance requirement specified for
the removal of SO2 in the table contained in
subparagraph (B), the SO2 removal design level in
the case of a unit designed for the use of feedstock
substantially all of which is subbituminous coal shall be 99
percent SO2 removal or the achievement of an
emission level of 0.04 pounds or less of SO2 per
million Btu, determined on a 30-day average.''.
(b) Effective Date.--The amendment made by this section
shall take apply with respect to applications for
certification under section 48A(d)(2) of the Internal Revenue
Code of 1986 submitted after October 2, 2006.
SEC. 204. DEDUCTION FOR ENERGY EFFICIENT COMMERCIAL
BUILDINGS.
Subsection (h) of section 179D is amended by striking
``December 31, 2007'' and inserting ``December 31, 2008''.
SEC. 205. CREDIT FOR NEW ENERGY EFFICIENT HOMES.
Subsection (g) of section 45L is amended by striking
``December 31, 2007'' and inserting ``December 31, 2008''.
SEC. 206. CREDIT FOR RESIDENTIAL ENERGY EFFICIENT PROPERTY.
(a) Extension.--Subsection (g) of section 25D is amended by
striking ``December 31, 2007'' and inserting ``December 31,
2008''.
(b) Clarification of Term.--
(1) Subsections (a)(1), (b)(1)(A), and (e)(4)(A)(i) of
section 25D are each amended by striking ``qualified
photovoltaic property expenditures'' and inserting
``qualified solar electric property expenditures''.
(2) Section 25D(d)(2) is amended--
(A) by striking ``qualified photovoltaic property
expenditure'' and inserting ``qualified solar electric
property expenditure'', and
(B) in the heading by striking ``qualified photovoltaic
property expenditure'' and inserting ``qualified solar
electric property expenditure''.
SEC. 207. ENERGY CREDIT.
Section 48 is amended--
(1) by striking ``January 1, 2008'' both places it appears
and inserting ``January 1, 2009'', and
(2) by striking ``December 31, 2007'' both places it
appears and inserting ``December 31, 2008''.
SEC. 208. SPECIAL RULE FOR QUALIFIED METHANOL OR ETHANOL
FUEL.
(a) Extension.--Subparagraph (D) of section 4041(b)(2) is
amended by striking ``October 1, 2007'' and inserting
``January 1, 2009''.
(b) Applicable Blender Rate.--Section 4041(b)(2)(C)(ii) is
amended by striking ``2007'' and inserting ``2008''.
(c) Clerical Amendment.--The heading for section
4041(b)(2)(B) is amended to read as follows: ``Qualified
methanol and ethanol fuel produced from coal''.
SEC. 209. SPECIAL DEPRECIATION ALLOWANCE FOR CELLULOSIC
BIOMASS ETHANOL PLANT PROPERTY.
(a) In General.--Section 168 (relating to accelerated cost
recovery system) is amended by adding at the end the
following:
``(l) Special Allowance for Cellulosic Biomass Ethanol
Plant Property.--
``(1) Additional allowance.--In the case of any qualified
cellulosic biomass ethanol plant property--
``(A) the depreciation deduction provided by section 167(a)
for the taxable year in which such property is placed in
service shall include an allowance equal to 50 percent of the
adjusted basis of such property, and
``(B) the adjusted basis of such property shall be reduced
by the amount of such deduction before computing the amount
otherwise allowable as a depreciation deduction under this
chapter for such taxable year and any subsequent taxable
year.
``(2) Qualified cellulosic biomass ethanol plant
property.--The term `qualified cellulosic biomass ethanol
plant property' means property of a character subject to the
allowance for depreciation--
``(A) which is used in the United States solely to produce
cellulosic biomass ethanol,
``(B) the original use of which commences with the taxpayer
after the date of the enactment of this subsection,
``(C) which is acquired by the taxpayer by purchase (as
defined in section 179(d)) after the date of the enactment of
this subsection, but only if no written binding contract for
the acquisition was in effect on or before the date of the
enactment of this subsection, and
``(D) which is placed in service by the taxpayer before
January 1, 2013.
``(3) Cellulosic biomass ethanol.--For purposes of this
subsection, the term `cellulosic biomass ethanol' means
ethanol produced by enzymatic hydrolysis of any
lignocellulosic or hemicellulosic matter that is available on
a renewable or recurring basis.
``(4) Exceptions.--
``(A) Alternative depreciation property.--Such term shall
not include any property described in section
168(k)(2)(D)(i).
``(B) Tax-exempt bond-financed property.--Such term shall
not include any property any portion of which is financed
with the proceeds of any obligation the interest on which is
exempt from tax under section 103.
``(C) Election out.--If a taxpayer makes an election under
this subparagraph with respect to any class of property for
any taxable year, this subsection shall not apply to all
property in such class placed in service during such taxable
year.
``(5) Special rules.--For purposes of this subsection,
rules similar to the rules of subparagraph (E) of section
168(k)(2) shall apply, except that such subparagraph shall be
applied--
``(A) by substituting `the date of the enactment of
subsection (l)' for `September 10, 2001' each place it
appears therein,
``(B) by substituting `January 1, 2013' for `January 1,
2005' in clause (i) thereof, and
``(C) by substituting `qualified cellulosic biomass ethanol
plant property' for `qualified property' in clause (iv)
thereof.
``(6) Allowance against alternative minimum tax.--For
purposes of this subsection, rules similar to the rules of
section 168(k)(2)(G) shall apply.
``(7) Recapture.--For purposes of this subsection, rules
similar to the rules under section 179(d)(10) shall apply
with respect to any qualified cellulosic biomass ethanol
plant property which ceases to be qualified cellulosic
biomass ethanol plant property.
``(8) Denial of double benefit.--Paragraph (1) shall not
apply to any qualified cellulosic biomass ethanol plant
property with respect to which an election has been made
under section 179C (relating to election to expense certain
refineries).''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after the date of
the enactment of this Act in taxable years ending after such
date.
SEC. 210. EXPENDITURES PERMITTED FROM THE LEAKING UNDERGROUND
STORAGE TANK TRUST FUND.
(a) In General.--Subsection (c) of section 9508 is
amended--
(1) by striking ``section 9003(h)'' and inserting
``sections 9003(h), 9003(i), 9003(j), 9004(f), 9005(c), 9010,
9011, 9012, and 9013'', and
(2) by striking ``Superfund Amendments and Reauthorization
Act of 1986'' and inserting ``Public Law 109-168''.
(b) Conforming Amendments.--Section 9014(2) of the Solid
Waste Disposal Act is amended by striking ``Fund,
notwithstanding section 9508(c)(1) of the Internal Revenue
Code of 1986'' and inserting ``Fund''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 211. TREATMENT OF COKE AND COKE GAS.
(a) Nonapplication of Phaseout.--Section 45K(g)(2) is
amended by adding at the end the following new subparagraph:
``(D) Nonapplication of phaseout.--Subsection (b)(1) shall
not apply.''.
(b) Clarification of Qualifying Facility.--Section
45K(g)(1) is amended by inserting ``(other than from
petroleum based products)'' after ``coke or coke gas''.
(c) Effective Date.--The amendments made by this section
shall take effect as if included in section 1321 of the
Energy Policy Act of 2005.
TITLE III--HEALTH SAVINGS ACCOUNTS
SEC. 301. SHORT TITLE.
This title may be cited as the ``Health Opportunity Patient
Empowerment Act of 2006''.
SEC. 302. FSA AND HRA TERMINATIONS TO FUND HSAS.
(a) In General.--Section 106 (relating to contributions by
employer to accident and health plans) is amended by adding
at the end the following new subsection:
``(e) FSA and HRA Terminations to Fund HSAs.--
``(1) In general.--A plan shall not fail to be treated as a
health flexible spending arrangement or health reimbursement
arrangement under this section or section 105
[[Page H9030]]
merely because such plan provides for a qualified HSA
distribution.
``(2) Qualified hsa distribution.--The term `qualified HSA
distribution' means a distribution from a health flexible
spending arrangement or health reimbursement arrangement to
the extent that such distribution--
``(A) does not exceed the lesser of the balance in such
arrangement on September 21, 2006, or as of the date of such
distribution, and
``(B) is contributed by the employer directly to the health
savings account of the employee before January 1, 2012.
Such term shall not include more than 1 distribution with
respect to any arrangement.
``(3) Additional tax for failure to maintain high
deductible health plan coverage.--
``(A) In general.--If, at any time during the testing
period, the employee is not an eligible individual, then the
amount of the qualified HSA distribution--
``(i) shall be includible in the gross income of the
employee for the taxable year in which occurs the first month
in the testing period for which such employee is not an
eligible individual, and
``(ii) the tax imposed by this chapter for such taxable
year on the employee shall be increased by 10 percent of the
amount which is so includible.
``(B) Exception for disability or death.--Clauses (i) and
(ii) of subparagraph (A) shall not apply if the employee
ceases to be an eligible individual by reason of the death of
the employee or the employee becoming disabled (within the
meaning of section 72(m)(7)).
``(4) Definitions and special rules.--For purposes of this
subsection--
``(A) Testing period.--The term `testing period' means the
period beginning with the month in which the qualified HSA
distribution is contributed to the health savings account and
ending on the last day of the 12th month following such
month.
``(B) Eligible individual.--The term `eligible individual'
has the meaning given such term by section 223(c)(1).
``(C) Treatment as rollover contribution.--A qualified HSA
distribution shall be treated as a rollover contribution
described in section 223(f)(5).
``(5) Tax treatment relating to distributions.--For
purposes of this title--
``(A) In general.--A qualified HSA distribution shall be
treated as a payment described in subsection (d).
``(B) Comparability excise tax.--
``(i) In general.--Except as provided in clause (ii),
section 4980G shall not apply to qualified HSA distributions.
``(ii) Failure to offer to all employees.--In the case of a
qualified HSA distribution to any employee, the failure to
offer such distribution to any eligible individual covered
under a high deductible health plan of the employer shall
(notwithstanding section 4980G(d)) be treated for purposes of
section 4980G as a failure to meet the requirements of
section 4980G(b).''.
(b) Certain FSA Coverage Disregarded Coverage.--
Subparagraph (B) of section 223(c)(1) (relating to certain
coverage disregarded) is amended by striking ``and'' at the
end of clause (i), by striking the period at the end of
clause (ii) and inserting ``, and'', and by inserting after
clause (ii) the following new clause:
``(iii) for taxable years beginning after December 31,
2006, coverage under a health flexible spending arrangement
during any period immediately following the end of a plan
year of such arrangement during which unused benefits or
contributions remaining at the end of such plan year may be
paid or reimbursed to plan participants for qualified benefit
expenses incurred during such period if--
``(I) the balance in such arrangement at the end of such
plan year is zero, or
``(II) the individual is making a qualified HSA
distribution (as defined in section 106(e)) in an amount
equal to the remaining balance in such arrangement as of the
end of such plan year, in accordance with rules prescribed by
the Secretary.''.
(c) Application of Section.--
(1) Subsection (a).--The amendment made by subsection (a)
shall apply to distributions on or after the date of the
enactment of this Act.
(2) Subsection (b).--The amendment made by subsection (b)
shall take effect on the date of the enactment of this Act.
SEC. 303. REPEAL OF ANNUAL DEDUCTIBLE LIMITATION ON HSA
CONTRIBUTIONS.
(a) In General.--Paragraph (2) of section 223(b) (relating
to monthly limitation) is amended--
(1) in subparagraph (A) by striking ``the lesser of--'' and
all that follows and inserting ``$2,250.'', and
(2) in subparagraph (B) by striking ``the lesser of--'' and
all that follows and inserting ``$4,500.''.
(b) Conforming Amendment.--Section 223(d)(1)(A)(ii)(I) is
amended by striking ``subsection (b)(2)(B)(ii)'' and
inserting ``subsection (b)(2)(B)''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2006.
SEC. 304. MODIFICATION OF COST-OF-LIVING ADJUSTMENT.
Paragraph (1) of section 223(g) (relating to cost-of-living
adjustment) is amended by adding at the end the following new
flush sentence:
``In the case of adjustments made for any taxable year
beginning after 2007, section 1(f)(4) shall be applied for
purposes of this paragraph by substituting `March 31' for
`August 31', and the Secretary shall publish the adjusted
amounts under subsections (b)(2) and (c)(2)(A) for taxable
years beginning in any calendar year no later than June 1 of
the preceding calendar year.''.
SEC. 305. CONTRIBUTION LIMITATION NOT REDUCED FOR PART-YEAR
COVERAGE.
(a) Increase in Limit for Individuals Becoming Eligible
Individuals After Beginning of the Year.--Subsection (b) of
section 223 (relating to limitations) is amended by adding at
the end the following new paragraph:
``(8) Increase in limit for individuals becoming eligible
individuals after the beginning of the year.--
``(A) In general.--For purposes of computing the limitation
under paragraph (1) for any taxable year, an individual who
is an eligible individual during the last month of such
taxable year shall be treated--
``(i) as having been an eligible individual during each of
the months in such taxable year, and
``(ii) as having been enrolled, during each of the months
such individual is treated as an eligible individual solely
by reason of clause (i), in the same high deductible health
plan in which the individual was enrolled for the last month
of such taxable year.
``(B) Failure to maintain high deductible health plan
coverage.--
``(i) In general.--If, at any time during the testing
period, the individual is not an eligible individual, then--
``(I) gross income of the individual for the taxable year
in which occurs the first month in the testing period for
which such individual is not an eligible individual is
increased by the aggregate amount of all contributions to the
health savings account of the individual which could not have
been made but for subparagraph (A), and
``(II) the tax imposed by this chapter for any taxable year
on the individual shall be increased by 10 percent of the
amount of such increase.
``(ii) Exception for disability or death.--Subclauses (I)
and (II) of clause (i) shall not apply if the individual
ceased to be an eligible individual by reason of the death of
the individual or the individual becoming disabled (within
the meaning of section 72(m)(7)).
``(iii) Testing period.--The term `testing period' means
the period beginning with the last month of the taxable year
referred to in subparagraph (A) and ending on the last day of
the 12th month following such month.''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2006.
SEC. 306. EXCEPTION TO REQUIREMENT FOR EMPLOYERS TO MAKE
COMPARABLE HEALTH SAVINGS ACCOUNT
CONTRIBUTIONS.
(a) In General.--Section 4980G (relating to failure of
employer to make comparable health savings account
contributions) is amended by adding at the end the following
new subsection:
``(d) Exception.--For purposes of applying section 4980E to
a contribution to a health savings account of an employee who
is not a highly compensated employee (as defined in section
414(q)), highly compensated employees shall not be treated as
comparable participating employees.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2006.
SEC. 307. ONE-TIME DISTRIBUTION FROM INDIVIDUAL RETIREMENT
PLANS TO FUND HSAS.
(a) In General.--Subsection (d) of section 408 (relating to
taxability of beneficiary of employees' trust) is amended by
adding at the end the following new paragraph:
``(9) Distribution for health savings account funding.--
``(A) In general.--In the case of an individual who is an
eligible individual (as defined in section 223(c)) and who
elects the application of this paragraph for a taxable year,
gross income of the individual for the taxable year does not
include a qualified HSA funding distribution to the extent
such distribution is otherwise includible in gross income.
``(B) Qualified hsa funding distribution.--For purposes of
this paragraph, the term `qualified HSA funding distribution'
means a distribution from an individual retirement plan
(other than a plan described in subsection (k) or (p)) of the
employee to the extent that such distribution is contributed
to the health savings account of the individual in a direct
trustee-to-trustee transfer.
``(C) Limitations.--
``(i) Maximum dollar limitation.--The amount excluded from
gross income by subparagraph (A) shall not exceed the excess
of--
``(I) the annual limitation under section 223(b) computed
on the basis of the type of coverage under the high
deductible health plan covering the individual at the time of
the qualified HSA funding distribution, over
``(II) in the case of a distribution described in clause
(ii)(II), the amount of the earlier qualified HSA funding
distribution.
``(ii) One-time transfer.--
``(I) In general.--Except as provided in subclause (II), an
individual may make an election under subparagraph (A) only
for one qualified HSA funding distribution during the
lifetime of the individual. Such an election, once made,
shall be irrevocable.
``(II) Conversion from self-only to family coverage.--If a
qualified HSA funding
[[Page H9031]]
distribution is made during a month in a taxable year during
which an individual has self-only coverage under a high
deductible health plan as of the first day of the month, the
individual may elect to make an additional qualified HSA
funding distribution during a subsequent month in such
taxable year during which the individual has family coverage
under a high deductible health plan as of the first day of
the subsequent month.
``(D) Failure to maintain high deductible health plan
coverage.--
``(i) In general.--If, at any time during the testing
period, the individual is not an eligible individual, then
the aggregate amount of all contributions to the health
savings account of the individual made under subparagraph
(A)--
``(I) shall be includible in the gross income of the
individual for the taxable year in which occurs the first
month in the testing period for which such individual is not
an eligible individual, and
``(II) the tax imposed by this chapter for any taxable year
on the individual shall be increased by 10 percent of the
amount which is so includible.
``(ii) Exception for disability or death.--Subclauses (I)
and (II) of clause (i) shall not apply if the individual
ceased to be an eligible individual by reason of the death of
the individual or the individual becoming disabled (within
the meaning of section 72(m)(7)).
``(iii) Testing period.--The term `testing period' means
the period beginning with the month in which the qualified
HSA funding distribution is contributed to a health savings
account and ending on the last day of the 12th month
following such month.
``(E) Application of section 72.--Notwithstanding section
72, in determining the extent to which an amount is treated
as otherwise includible in gross income for purposes of
subparagraph (A), the aggregate amount distributed from an
individual retirement plan shall be treated as includible in
gross income to the extent that such amount does not exceed
the aggregate amount which would have been so includible if
all amounts from all individual retirement plans were
distributed. Proper adjustments shall be made in applying
section 72 to other distributions in such taxable year and
subsequent taxable years.''.
(b) Coordination With Limitation on Contributions to
HSAs.--Section 223(b)(4) (relating to coordination with other
contributions) is amended by striking ``and'' at the end of
subparagraph (A), by striking the period at the end of
subparagraph (B) and inserting ``, and'', and by inserting
after subparagraph (B) the following new subparagraph:
``(C) the aggregate amount contributed to health savings
accounts of such individual for such taxable year under
section 408(d)(9) (and such amount shall not be allowed as a
deduction under subsection (a)).''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2006.
TITLE IV--OTHER PROVISIONS
SEC. 401. DEDUCTION ALLOWABLE WITH RESPECT TO INCOME
ATTRIBUTABLE TO DOMESTIC PRODUCTION ACTIVITIES
IN PUERTO RICO.
(a) In General.--Subsection (d) of section 199 (relating to
definitions and special rules) is amended by redesignating
paragraph (8) as paragraph (9) and by inserting after
paragraph (7) the following new paragraph:
``(8) Treatment of activities in puerto rico.--
``(A) In general.--In the case of any taxpayer with gross
receipts for any taxable year from sources within the
Commonwealth of Puerto Rico, if all of such receipts are
taxable under section 1 or 11 for such taxable year, then for
purposes of determining the domestic production gross
receipts of such taxpayer for such taxable year under
subsection (c)(4), the term `United States' shall include the
Commonwealth of Puerto Rico.
``(B) Special rule for applying wage limitation.--In the
case of any taxpayer described in subparagraph (A), for
purposes of applying the limitation under subsection (b) for
any taxable year, the determination of W-2 wages of such
taxpayer shall be made without regard to any exclusion under
section 3401(a)(8) for remuneration paid for services
performed in Puerto Rico.
``(C) Termination.--This paragraph shall apply only with
respect to the first 2 taxable years of the taxpayer
beginning after December 31, 2005, and before January 1,
2008.''.
(b) Effective Date.--The amendments made by subsection (a)
shall apply to taxable years beginning after December 31,
2005.
SEC. 402. CREDIT FOR PRIOR YEAR MINIMUM TAX LIABILITY MADE
REFUNDABLE AFTER PERIOD OF YEARS.
(a) In General.--Section 53 (relating to credit for prior
year minimum tax liability) is amended by adding at the end
the following new subsection:
``(e) Special Rule for Individuals With Long-Term Unused
Credits.--
``(1) In general.--If an individual has a long-term unused
minimum tax credit for any taxable year beginning before
January 1, 2013, the amount determined under subsection (c)
for such taxable year shall not be less than the AMT
refundable credit amount for such taxable year.
``(2) Amt refundable credit amount.--For purposes of
paragraph (1)--
``(A) In general.--The term `AMT refundable credit amount'
means, with respect to any taxable year, the amount equal to
the greater of--
``(i) the lesser of--
``(I) $5,000, or
``(II) the amount of long-term unused minimum tax credit
for such taxable year, or
``(ii) 20 percent of the amount of such credit.
``(B) Phaseout of amt refundable credit amount.--
``(i) In general.--In the case of an individual whose
adjusted gross income for any taxable year exceeds the
threshold amount (within the meaning of section
151(d)(3)(C)), the AMT refundable credit amount determined
under subparagraph (A) for such taxable year shall be reduced
by the applicable percentage (within the meaning of section
151(d)(3)(B)).
``(ii) Adjusted gross income.--For purposes of clause (i),
adjusted gross income shall be determined without regard to
sections 911, 931, and 933.
``(3) Long-term unused minimum tax credit.--
``(A) In general.--For purposes of this subsection, the
term `long-term unused minimum tax credit' means, with
respect to any taxable year, the portion of the minimum tax
credit determined under subsection (b) attributable to the
adjusted net minimum tax for taxable years before the 3rd
taxable year immediately preceding such taxable year.
``(B) First-in, first-out ordering rule.--For purposes of
subparagraph (A), credits shall be treated as allowed under
subsection (a) on a first-in, first-out basis.
``(4) Credit refundable.--For purposes of this title (other
than this section), the credit allowed by reason of this
subsection shall be treated as if it were allowed under
subpart C.''.
(b) Conforming Amendments.--
(1) Section 6211(b)(4)(A) is amended by striking ``and 34''
and inserting ``34, and 53(e)''.
(2) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting ``or 53(e)'' after
``section 35''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 403. RETURNS REQUIRED IN CONNECTION WITH CERTAIN
OPTIONS.
(a) In General.--So much of section 6039(a) as follows
paragraph (2) is amended to read as follows:
``shall, for such calendar year, make a return at such time
and in such manner, and setting forth such information, as
the Secretary may by regulations prescribe.''.
(b) Statements to Persons With Respect to Whom Information
Is Furnished.--Section 6039 is amended by redesignating
subsections (b) and (c) as subsection (c) and (d),
respectively, and by inserting after subsection (a) the
following new subsection:
``(b) Statements To Be Furnished to Persons With Respect to
Whom Information Is Reported.--Every corporation making a
return under subsection (a) shall furnish to each person
whose name is set forth in such return a written statement
setting forth such information as the Secretary may by
regulations prescribe. The written statement required under
the preceding sentence shall be furnished to such person on
or before January 31 of the year following the calendar year
for which the return under subsection (a) was made.''.
(c) Conforming Amendments.--
(1) Section 6724(d)(1)(B) is amended by striking ``or'' at
the end of clause (xvii), by striking ``and'' at the end of
clause (xviii) and inserting ``or'', and by adding at the end
the following new clause:
``(xix) section 6039(a) (relating to returns required with
respect to certain options), and''.
(2) Section 6724(d)(2)(B) is amended by striking ``section
6039(a)'' and inserting ``section 6039(b)''.
(3) The heading of section 6039 and the item relating to
such section in the table of sections of subpart A of part
III of subchapter A of chapter 61 of such Code are each
amended by striking ``Information'' and inserting
``Returns''.
(4) The heading of subsection (a) of section 6039 is
amended by striking ``Furnishing of Information'' and
inserting ``Requirement of Reporting''.
(d) Effective Date.--The amendments made by this section
shall apply to calendar years beginning after the date of the
enactment of this Act.
SEC. 404. PARTIAL EXPENSING FOR ADVANCED MINE SAFETY
EQUIPMENT.
(a) In General.--Part VI of subchapter B of chapter 1 is
amended by inserting after section 179D the following new
section:
``SEC. 179E. ELECTION TO EXPENSE ADVANCED MINE SAFETY
EQUIPMENT.
``(a) Treatment as Expenses.--A taxpayer may elect to treat
50 percent of the cost of any qualified advanced mine safety
equipment property as an expense which is not chargeable to
capital account. Any cost so treated shall be allowed as a
deduction for the taxable year in which the qualified
advanced mine safety equipment property is placed in service.
``(b) Election.--
``(1) In general.--An election under this section for any
taxable year shall be made on the taxpayer's return of the
tax imposed by this chapter for the taxable year. Such
election shall specify the advanced mine safety equipment
property to which the election applies and shall be made in
such manner as the Secretary may by regulations prescribe.
[[Page H9032]]
``(2) Election irrevocable.--Any election made under this
section may not be revoked except with the consent of the
Secretary.
``(c) Qualified Advanced Mine Safety Equipment Property.--
For purposes of this section, the term `qualified advanced
mine safety equipment property' means any advanced mine
safety equipment property for use in any underground mine
located in the United States--
``(1) the original use of which commences with the
taxpayer, and
``(2) which is placed in service by the taxpayer after the
date of the enactment of this section.
``(d) Advanced Mine Safety Equipment Property.--For
purposes of this section, the term `advanced mine safety
equipment property' means any of the following:
``(1) Emergency communication technology or device which is
used to allow a miner to maintain constant communication with
an individual who is not in the mine.
``(2) Electronic identification and location device which
allows an individual who is not in the mine to track at all
times the movements and location of miners working in or at
the mine.
``(3) Emergency oxygen-generating, self-rescue device which
provides oxygen for at least 90 minutes.
``(4) Pre-positioned supplies of oxygen which (in
combination with self-rescue devices) can be used to provide
each miner on a shift, in the event of an accident or other
event which traps the miner in the mine or otherwise
necessitates the use of such a self-rescue device, the
ability to survive for at least 48 hours.
``(5) Comprehensive atmospheric monitoring system which
monitors the levels of carbon monoxide, methane, and oxygen
that are present in all areas of the mine and which can
detect smoke in the case of a fire in a mine.
``(e) Coordination With Section 179.--No expenditures shall
be taken into account under subsection (a) with respect to
the portion of the cost of any property specified in an
election under section 179.
``(f) Reporting.--No deduction shall be allowed under
subsection (a) to any taxpayer for any taxable year unless
such taxpayer files with the Secretary a report containing
such information with respect to the operation of the mines
of the taxpayer as the Secretary shall require.
``(g) Termination.--This section shall not apply to
property placed in service after December 31, 2008.''.
(b) Conforming Amendments.--
(1) Section 263(a)(1) is amended by striking ``or'' at the
end of subparagraph (J), by striking the period at the end of
subparagraph (K) and inserting ``, or'', and by inserting
after subparagraph (K) the following new subparagraph:
``(L) expenditures for which a deduction is allowed under
section 179E.''.
(2) Section 312(k)(3)(B) is amended by striking ``or 179D''
each place it appears in the heading and text thereof and
inserting ``179D, or 179E''.
(3) Paragraphs (2)(C) and (3)(C) of section 1245(a) are
each amended by inserting ``179E,'' after ``179D,''.
(4) The table of sections for part VI of subchapter B of
chapter 1 is amended by inserting after the item relating to
section 179D the following new item:
``Sec. 179E. Election to expense advanced mine safety equipment.''.
(c) Effective Date.--The amendments made by this section
shall apply to costs paid or incurred after the date of the
enactment of this Act.
SEC. 405. MINE RESCUE TEAM TRAINING TAX CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 (relating to business related credits) is amended
by adding at the end the following new section:
``SEC. 45N. MINE RESCUE TEAM TRAINING CREDIT.
``(a) Amount of Credit.--For purposes of section 38, the
mine rescue team training credit determined under this
section with respect to each qualified mine rescue team
employee of an eligible employer for any taxable year is an
amount equal to the lesser of--
``(1) 20 percent of the amount paid or incurred by the
taxpayer during the taxable year with respect to the training
program costs of such qualified mine rescue team employee
(including wages of such employee while attending such
program), or
``(2) $10,000.
``(b) Qualified Mine Rescue Team Employee.--For purposes of
this section, the term `qualified mine rescue team employee'
means with respect to any taxable year any full-time employee
of the taxpayer who is--
``(1) a miner eligible for more than 6 months of such
taxable year to serve as a mine rescue team member as a
result of completing, at a minimum, an initial 20-hour course
of instruction as prescribed by the Mine Safety and Health
Administration's Office of Educational Policy and
Development, or
``(2) a miner eligible for more than 6 months of such
taxable year to serve as a mine rescue team member by virtue
of receiving at least 40 hours of refresher training in such
instruction.
``(c) Eligible Employer.--For purposes of this section, the
term `eligible employer' means any taxpayer which employs
individuals as miners in underground mines in the United
States.
``(d) Wages.--For purposes of this section, the term
`wages' has the meaning given to such term by subsection (b)
of section 3306 (determined without regard to any dollar
limitation contained in such section).
``(e) Termination.--This section shall not apply to taxable
years beginning after December 31, 2008.''.
(b) Credit Made Part of General Business Credit.--Section
38(b) is amended by striking ``and'' 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) the mine rescue team training credit determined
under section 45N(a).''.
(c) No Double Benefit.--Section 280C is amended by adding
at the end the following new subsection:
``(e) Mine Rescue Team Training Credit.--No deduction shall
be allowed for that portion of the expenses otherwise
allowable as a deduction for the taxable year which is equal
to the amount of the credit determined for the taxable year
under section 45N(a).''.
(d) Clerical Amendment.--The table of sections for subpart
D of part IV of subchapter A of chapter 1 is amended by
adding at the end the following new item:
``Sec. 45N. Mine rescue team training credit.''.
(e) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2005.
SEC. 406. WHISTLEBLOWER REFORMS.
(a) Awards to Whistleblowers.--
(1) In general.--Section 7623 (relating to expenses of
detection of underpayments and fraud, etc.) is amended--
(A) by striking ``The Secretary'' and inserting ``(a) In
General.--The Secretary'',
(B) by striking ``and'' at the end of paragraph (1) and
inserting ``or'',
(C) by striking ``(other than interest)'', and
(D) by adding at the end the following new subsection:
``(b) Awards to Whistleblowers.--
``(1) In general.--If the Secretary proceeds with any
administrative or judicial action described in subsection (a)
based on information brought to the Secretary's attention by
an individual, such individual shall, subject to paragraph
(2), receive as an award at least 15 percent but not more
than 30 percent of the collected proceeds (including
penalties, interest, additions to tax, and additional
amounts) resulting from the action (including any related
actions) or from any settlement in response to such action.
The determination of the amount of such award by the
Whistleblower Office shall depend upon the extent to which
the individual substantially contributed to such action.
``(2) Award in case of less substantial contribution.--
``(A) In general.--In the event the action described in
paragraph (1) is one which the Whistleblower Office
determines to be based principally on disclosures of specific
allegations (other than information provided by the
individual described in paragraph (1)) resulting from a
judicial or administrative hearing, from a governmental
report, hearing, audit, or investigation, or from the news
media, the Whistleblower Office may award such sums as it
considers appropriate, but in no case more than 10 percent of
the collected proceeds (including penalties, interest,
additions to tax, and additional amounts) resulting from the
action (including any related actions) or from any settlement
in response to such action, taking into account the
significance of the individual's information and the role of
such individual and any legal representative of such
individual in contributing to such action.
``(B) Nonapplication of paragraph where individual is
original source of information.--Subparagraph (A) shall not
apply if the information resulting in the initiation of the
action described in paragraph (1) was originally provided by
the individual described in paragraph (1).
``(3) Reduction in or denial of award.--If the
Whistleblower Office determines that the claim for an award
under paragraph (1) or (2) is brought by an individual who
planned and initiated the actions that led to the
underpayment of tax or actions described in subsection
(a)(2), then the Whistleblower Office may appropriately
reduce such award. If such individual is convicted of
criminal conduct arising from the role described in the
preceding sentence, the Whistleblower Office shall deny any
award.
``(4) Appeal of award determination.--Any determination
regarding an award under paragraph (1), (2), or (3) may,
within 30 days of such determination, be appealed to the Tax
Court (and the Tax Court shall have jurisdiction with respect
to such matter).
``(5) Application of this subsection.--This subsection
shall apply with respect to any action--
``(A) against any taxpayer, but in the case of any
individual, only if such individual's gross income exceeds
$200,000 for any taxable year subject to such action, and
``(B) if the tax, penalties, interest, additions to tax,
and additional amounts in dispute exceed $2,000,000.
``(6) Additional rules.--
``(A) No contract necessary.--No contract with the Internal
Revenue Service is necessary for any individual to receive an
award under this subsection.
``(B) Representation.--Any individual described in
paragraph (1) or (2) may be represented by counsel.
``(C) Submission of information.--No award may be made
under this subsection
[[Page H9033]]
based on information submitted to the Secretary unless such
information is submitted under penalty of perjury.''.
(2) Assignment to special trial judges.--
(A) In general.--Section 7443A(b) (relating to proceedings
which may be assigned to special trial judges) is amended by
striking ``and'' at the end of paragraph (5), by
redesignating paragraph (6) as paragraph (7), and by
inserting after paragraph (5) the following new paragraph:
``(6) any proceeding under section 7623(b)(4), and''.
(B) Conforming amendment.--Section 7443A(c) is amended by
striking ``or (5)'' and inserting ``(5), or (6)''.
(3) Deduction allowed whether or not taxpayer itemizes.--
Subsection (a) of section 62 (relating to general rule
defining adjusted gross income) is amended by inserting after
paragraph (20) the following new paragraph:
``(21) Attorneys fees relating to awards to
whistleblowers.--Any deduction allowable under this chapter
for attorney fees and court costs paid by, or on behalf of,
the taxpayer in connection with any award under section
7623(b) (relating to awards to whistleblowers). The preceding
sentence shall not apply to any deduction in excess of the
amount includible in the taxpayer's gross income for the
taxable year on account of such award.''.
(b) Whistleblower Office.--
(1) In general.--Not later than the date which is 12 months
after the date of the enactment of this Act, the Secretary of
the Treasury shall issue guidance for the operation of a
whistleblower program to be administered in the Internal
Revenue Service by an office to be known as the
``Whistleblower Office'' which--
(A) shall at all times operate at the direction of the
Commissioner of Internal Revenue and coordinate and consult
with other divisions in the Internal Revenue Service as
directed by the Commissioner of Internal Revenue,
(B) shall analyze information received from any individual
described in section 7623(b) of the Internal Revenue Code of
1986 and either investigate the matter itself or assign it to
the appropriate Internal Revenue Service office, and
(C) in its sole discretion, may ask for additional
assistance from such individual or any legal representative
of such individual.
(2) Request for assistance.--The guidance issued under
paragraph (1) shall specify that any assistance requested
under paragraph (1)(C) shall be under the direction and
control of the Whistleblower Office or the office assigned to
investigate the matter under paragraph (1)(A). No individual
or legal representative whose assistance is so requested may
by reason of such request represent himself or herself as an
employee of the Federal Government.
(c) Report by Secretary.--The Secretary of the Treasury
shall each year conduct a study and report to Congress on the
use of section 7623 of the Internal Revenue Code of 1986,
including--
(1) an analysis of the use of such section during the
preceding year and the results of such use, and
(2) any legislative or administrative recommendations
regarding the provisions of such section and its application.
(d) Effective Date.--The amendments made by subsection (a)
shall apply to information provided on or after the date of
the enactment of this Act.
SEC. 407. FRIVOLOUS TAX SUBMISSIONS.
(a) Civil Penalties.--Section 6702 is amended to read as
follows:
``SEC. 6702. FRIVOLOUS TAX SUBMISSIONS.
``(a) Civil Penalty for Frivolous Tax Returns.--A person
shall pay a penalty of $5,000 if--
``(1) such person files what purports to be a return of a
tax imposed by this title but which--
``(A) does not contain information on which the substantial
correctness of the self-assessment may be judged, or
``(B) contains information that on its face indicates that
the self-assessment is substantially incorrect, and
``(2) the conduct referred to in paragraph (1)--
``(A) is based on a position which the Secretary has
identified as frivolous under subsection (c), or
``(B) reflects a desire to delay or impede the
administration of Federal tax laws.
``(b) Civil Penalty for Specified Frivolous Submissions.--
``(1) Imposition of penalty.--Except as provided in
paragraph (3), any person who submits a specified frivolous
submission shall pay a penalty of $5,000.
``(2) Specified frivolous submission.--For purposes of this
section--
``(A) Specified frivolous submission.--The term `specified
frivolous submission' means a specified submission if any
portion of such submission--
``(i) is based on a position which the Secretary has
identified as frivolous under subsection (c), or
``(ii) reflects a desire to delay or impede the
administration of Federal tax laws.
``(B) Specified submission.--The term `specified
submission' means--
``(i) a request for a hearing under--
``(I) section 6320 (relating to notice and opportunity for
hearing upon filing of notice of lien), or
``(II) section 6330 (relating to notice and opportunity for
hearing before levy), and
``(ii) an application under--
``(I) section 6159 (relating to agreements for payment of
tax liability in installments),
``(II) section 7122 (relating to compromises), or
``(III) section 7811 (relating to taxpayer assistance
orders).
``(3) Opportunity to withdraw submission.--If the Secretary
provides a person with notice that a submission is a
specified frivolous submission and such person withdraws such
submission within 30 days after such notice, the penalty
imposed under paragraph (1) shall not apply with respect to
such submission.
``(c) Listing of Frivolous Positions.--The Secretary shall
prescribe (and periodically revise) a list of positions which
the Secretary has identified as being frivolous for purposes
of this subsection. The Secretary shall not include in such
list any position that the Secretary determines meets the
requirement of section 6662(d)(2)(B)(ii)(II).
``(d) Reduction of Penalty.--The Secretary may reduce the
amount of any penalty imposed under this section if the
Secretary determines that such reduction would promote
compliance with and administration of the Federal tax laws.
``(e) Penalties in Addition to Other Penalties.--The
penalties imposed by this section shall be in addition to any
other penalty provided by law.''.
(b) Treatment of Frivolous Requests for Hearings Before
Levy.--
(1) Frivolous requests disregarded.--Section 6330 (relating
to notice and opportunity for hearing before levy) is amended
by adding at the end the following new subsection:
``(g) Frivolous Requests for Hearing, etc.--Notwithstanding
any other provision of this section, if the Secretary
determines that any portion of a request for a hearing under
this section or section 6320 meets the requirement of clause
(i) or (ii) of section 6702(b)(2)(A), then the Secretary may
treat such portion as if it were never submitted and such
portion shall not be subject to any further administrative or
judicial review.''.
(2) Preclusion from raising frivolous issues at hearing.--
Section 6330(c)(4) is amended--
(A) by striking ``(A)'' and inserting ``(A)(i)'';
(B) by striking ``(B)'' and inserting ``(ii)'';
(C) by striking the period at the end of the first sentence
and inserting ``; or''; and
(D) by inserting after subparagraph (A)(ii) (as so
redesignated) the following:
``(B) the issue meets the requirement of clause (i) or (ii)
of section 6702(b)(2)(A).''.
(3) Statement of grounds.--Section 6330(b)(1) is amended by
striking ``under subsection (a)(3)(B)'' and inserting ``in
writing under subsection (a)(3)(B) and states the grounds for
the requested hearing''.
(c) Treatment of Frivolous Requests for Hearings Upon
Filing of Notice of Lien.--Section 6320 is amended--
(1) in subsection (b)(1), by striking ``under subsection
(a)(3)(B)'' and inserting ``in writing under subsection
(a)(3)(B) and states the grounds for the requested hearing'',
and
(2) in subsection (c), by striking ``and (e)'' and
inserting ``(e), and (g)''.
(d) Treatment of Frivolous Applications for Offers-in-
Compromise and Installment Agreements.--Section 7122 is
amended by adding at the end the following new subsection:
``(f) Frivolous Submissions, etc.--Notwithstanding any
other provision of this section, if the Secretary determines
that any portion of an application for an offer-in-compromise
or installment agreement submitted under this section or
section 6159 meets the requirement of clause (i) or (ii) of
section 6702(b)(2)(A), then the Secretary may treat such
portion as if it were never submitted and such portion shall
not be subject to any further administrative or judicial
review.''.
(e) Clerical Amendment.--The table of sections for part I
of subchapter B of chapter 68 is amended by striking the item
relating to section 6702 and inserting the following new
item:
``Sec. 6702. Frivolous tax submissions.''.
(f) Effective Date.--The amendments made by this section
shall apply to submissions made and issues raised after the
date on which the Secretary first prescribes a list under
section 6702(c) of the Internal Revenue Code of 1986, as
amended by subsection (a).
SEC. 408. ADDITION OF MENINGOCOCCAL AND HUMAN PAPILLOMAVIRUS
VACCINES TO LIST OF TAXABLE VACCINES.
(a) Meningococcal Vaccine.--Section 4132(a)(1) (defining
taxable vaccine) is amended by adding at the end the
following new subparagraph:
``(O) Any meningococcal vaccine.''.
(b) Human Papillomavirus Vaccine.--Section 4132(a)(1), as
amended by subsection (a), is amended by adding at the end
the following new subparagraph:
``(P) Any vaccine against the human papillomavirus.''.
(c) Effective Date.--
(1) Sales, etc.--The amendments made by this section shall
apply to sales and uses on or after the first day of the
first month which begins more than 4 weeks after the date of
the enactment of this Act.
(2) Deliveries.--For purposes of paragraph (1) and section
4131 of the Internal Revenue Code of 1986, in the case of
sales on or before the effective date described in such
paragraph for which delivery is made after such date, the
delivery date shall be considered the sale date.
[[Page H9034]]
SEC. 409. CLARIFICATION OF TAXATION OF CERTAIN SETTLEMENT
FUNDS MADE PERMANENT.
(a) In General.--Subsection (g) of section 468B is amended
by striking paragraph (3).
(b) Effective Date.--The amendment made by this section
shall take effect as if included in section 201 of the Tax
Increase Prevention and Reconciliation Act of 2005.
SEC. 410. MODIFICATION OF ACTIVE BUSINESS DEFINITION UNDER
SECTION 355 MADE PERMANENT.
(a) In General.--Subparagraphs (A) and (D) of section
355(b)(3) are each amended by striking ``and on or before
December 31, 2010''.
(b) Effective Date.--The amendments made by this section
shall take effect as if included in section 202 of the Tax
Increase Prevention and Reconciliation Act of 2005.
SEC. 411. REVISION OF STATE VETERANS LIMIT MADE PERMANENT.
(a) In General.--Subparagraph (B) of section 143(l)(3) is
amended by striking clause (iv).
(b) Effective Date.--The amendment made by this section
shall take effect as if included in section 203 of the Tax
Increase Prevention and Reconciliation Act of 2005.
SEC. 412. CAPITAL GAINS TREATMENT FOR CERTAIN SELF-CREATED
MUSICAL WORKS MADE PERMANENT.
(a) In General.--Paragraph (3) of section 1221(b) is
amended by striking ``before January 1, 2011,''.
(b) Effective Date.--The amendment made by this section
shall take effect as if included in section 204 of the Tax
Increase Prevention and Reconciliation Act of 2005.
SEC. 413. REDUCTION IN MINIMUM VESSEL TONNAGE WHICH QUALIFIES
FOR TONNAGE TAX MADE PERMANENT.
(a) In General.--Paragraph (4) of section 1355(a) is
amended by striking ``10,000 (6,000, in the case of taxable
years beginning after December 31, 2005, and ending before
January 1, 2011)'' and inserting ``6,000''.
(b) Effective Date.--The amendment made by this section
shall take effect as if included in section 205 of the Tax
Increase Prevention and Reconciliation Act of 2005.
SEC. 414. MODIFICATION OF SPECIAL ARBITRAGE RULE FOR CERTAIN
FUNDS MADE PERMANENT.
(a) In General.--Section 206 of the Tax Increase Prevention
and Reconciliation Act of 2005 is amended by striking ``and
before August 31, 2009''.
(b) Effective Date.--The amendment made by this section
shall take effect as if included in section 206 of the Tax
Increase Prevention and Reconciliation Act of 2005.
SEC. 415. GREAT LAKES DOMESTIC SHIPPING TO NOT DISQUALIFY
VESSEL FROM TONNAGE TAX.
(a) In General.--Section 1355 (relating to definitions and
special rules) is amended by redesignating subsection (g) as
subsection (h) and by inserting after subsection (f) the
following new subsection:
``(g) Great Lakes Domestic Shipping to Not Disqualify
Vessel.--
``(1) In general.--If the electing corporation elects (at
such time and in such manner as the Secretary may require) to
apply this subsection for any taxable year to any qualifying
vessel which is used in qualified zone domestic trade during
the taxable year--
``(A) solely for purposes of subsection (a)(4), such use
shall be treated as use in United States foreign trade (and
not as use in United States domestic trade), and
``(B) subsection (f) shall not apply with respect to such
vessel for such taxable year.
``(2) Effect of temporarily operating vessel in united
states domestic trade.--In the case of a qualifying vessel to
which this subsection applies--
``(A) In general.--An electing corporation shall be treated
as using such vessel in qualified zone domestic trade during
any period of temporary use in the United States domestic
trade (other than qualified zone domestic trade) if the
electing corporation gives timely notice to the Secretary
stating--
``(i) that it temporarily operates or has operated in the
United States domestic trade (other than qualified zone
domestic trade) a qualifying vessel which had been used in
the United States foreign trade or qualified zone domestic
trade, and
``(ii) its intention to resume operation of the vessel in
the United States foreign trade or qualified zone domestic
trade.
``(B) Notice.--Notice shall be deemed timely if given not
later than the due date (including extensions) for the
corporation's tax return for the taxable year in which the
temporary cessation begins.
``(C) Period disregard in effect.--The period of temporary
use under subparagraph (A) continues until the earlier of the
date of which--
``(i) the electing corporation abandons its intention to
resume operations of the vessel in the United States foreign
trade or qualified zone domestic trade, or
``(ii) the electing corporation resumes operation of the
vessel in the United States foreign trade or qualified zone
domestic trade.
``(D) No disregard if domestic trade use exceeds 30 days.--
Subparagraph (A) shall not apply to any qualifying vessel
which is operated in the United States domestic trade (other
than qualified zone domestic trade) for more than 30 days
during the taxable year.
``(3) Allocation of income and deductions to qualifying
shipping activities.--In the case of a qualifying vessel to
which this subsection applies, the Secretary shall prescribe
rules for the proper allocation of income, expenses, losses,
and deductions between the qualified shipping activities and
the other activities of such vessel.
``(4) Qualified zone domestic trade.--For purposes of this
subsection--
``(A) In general.--The term `qualified zone domestic trade'
means the transportation of goods or passengers between
places in the qualified zone if such transportation is in the
United States domestic trade.
``(B) Qualified zone.--The term `qualified zone' means the
Great Lakes Waterway and the St. Lawrence Seaway.''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 416. USE OF QUALIFIED MORTGAGE BONDS TO FINANCE
RESIDENCES FOR VETERANS WITHOUT REGARD TO
FIRST-TIME HOMEBUYER REQUIREMENT.
(a) In General.--Section 143(d)(2) (relating to exceptions
to 3-year requirement) is amended by striking ``and'' at the
end of subparagraph (B), by adding ``and'' at the end of
subparagraph (C), and by inserting after subparagraph (C) the
following new subparagraph:
``(D) in the case of bonds issued after the date of the
enactment of this subparagraph and before January 1, 2008,
financing of any residence for a veteran (as defined in
section 101 of title 38, United States Code), if such veteran
has not previously qualified for and received such financing
by reason of this subparagraph,''.
(b) Effective Date.--The amendments made by this section
shall apply to bonds issued after the date of the enactment
of this Act.
SEC. 417. EXCLUSION OF GAIN FROM SALE OF A PRINCIPAL
RESIDENCE BY CERTAIN EMPLOYEES OF THE
INTELLIGENCE COMMUNITY.
(a) In General.--Subparagraph (A) of section 121(d)(9)
(relating to exclusion of gain from sale of principal
residence) is amended by striking ``duty'' and all that
follows and inserting ``duty--
``(i) as a member of the uniformed services,
``(ii) as a member of the Foreign Service of the United
States, or
``(iii) as an employee of the intelligence community.''.
(b) Employee of Intelligence Community Defined.--
Subparagraph (C) of section 121(d)(9) is amended by
redesignating clause (iv) as clause (v) and by inserting
after clause (iii) the following new clause:
``(iv) Employee of intelligence community.--The term
`employee of the intelligence community' means an employee
(as defined by section 2105 of title 5, United States Code)
of--
``(I) the Office of the Director of National Intelligence,
``(II) the Central Intelligence Agency,
``(III) the National Security Agency,
``(IV) the Defense Intelligence Agency,
``(V) the National Geospatial-Intelligence Agency,
``(VI) the National Reconnaissance Office,
``(VII) any other office within the Department of Defense
for the collection of specialized national intelligence
through reconnaissance programs,
``(VIII) any of the intelligence elements of the Army, the
Navy, the Air Force, the Marine Corps, the Federal Bureau of
Investigation, the Department of Treasury, the Department of
Energy, and the Coast Guard,
``(IX) the Bureau of Intelligence and Research of the
Department of State, or
``(X) any of the elements of the Department of Homeland
Security concerned with the analyses of foreign intelligence
information.''.
(c) Special Rule.--Subparagraph (C) of section 121(d)(9),
as amended by subsection (b), is amended by adding at the end
the following new clause:
``(vi) Special rule relating to intelligence community.--An
employee of the intelligence community shall not be treated
as serving on qualified extended duty unless such duty is at
a duty station located outside the United States.''.
(d) Conforming Amendment.--The heading for section
121(d)(9) is amended to read as follows: ``Uniformed
services, foreign service, and intelligence community''.
(e) Effective Date.--The amendments made by this section
shall apply to sales or exchanges after the date of the
enactment of this Act and before January 1, 2011.
SEC. 418. SALE OF PROPERTY BY JUDICIAL OFFICERS.
(a) In General.--Section 1043(b) (relating to the sale of
property to comply with conflict-of-interest requirements) is
amended--
(1) in paragraph (1)--
(A) in subparagraph (A), by inserting ``, or a judicial
officer,'' after ``an officer or employee of the executive
branch''; and
(B) in subparagraph (B), by inserting ``judicial canon,''
after ``any statute, regulation, rule,'';
(2) in paragraph (2)--
(A) in subparagraph (A), by inserting ``judicial canon,''
after ``any Federal conflict of interest statute, regulation,
rule,''; and
(B) in subparagraph (B), by inserting after ``the Director
of the Office of Government Ethics,'' the following: ``in the
case of executive branch officers or employees, or by the
Judicial Conference of the United States (or its designee),
in the case of judicial officers,''; and
[[Page H9035]]
(3) in paragraph (5)(B), by inserting ``judicial canon,''
after ``any statute, regulation, rule,''.
(b) Judicial Officer Defined.--Section 1043(b) is amended
by adding at the end the following new paragraph:
``(6) Judicial officer.--The term `judicial officer' means
the Chief Justice of the United States, the Associate
Justices of the Supreme Court, and the judges of the United
States courts of appeals, United States district courts,
including the district courts in Guam, the Northern Mariana
Islands, and the Virgin Islands, Court of Appeals for the
Federal Circuit, Court of International Trade, Tax Court,
Court of Federal Claims, Court of Appeals for Veterans
Claims, United States Court of Appeals for the Armed Forces,
and any court created by Act of Congress, the judges of which
are entitled to hold office during good behavior.''.
(c) Effective Date.--The amendments made by this section
shall apply to sales after the date of enactment of this Act.
SEC. 419. PREMIUMS FOR MORTGAGE INSURANCE.
(a) In General.--Section 163(h)(3) (relating to qualified
residence interest) is amended by adding at the end the
following new subparagraph:
``(E) Mortgage insurance premiums treated as interest.--
``(i) In general.--Premiums paid or accrued for qualified
mortgage insurance by a taxpayer during the taxable year in
connection with acquisition indebtedness with respect to a
qualified residence of the taxpayer shall be treated for
purposes of this section as interest which is qualified
residence interest.
``(ii) Phaseout.--The amount otherwise treated as interest
under clause (i) shall be reduced (but not below zero) by 10
percent of such amount for each $1,000 ($500 in the case of a
married individual filing a separate return) (or fraction
thereof) that the taxpayer's adjusted gross income for the
taxable year exceeds $100,000 ($50,000 in the case of a
married individual filing a separate return).
``(iii) Limitation.--Clause (i) shall not apply with
respect to any mortgage insurance contracts issued before
January 1, 2007.
``(iv) Termination.--Clause (i) shall not apply to
amounts--
``(I) paid or accrued after December 31, 2007, or
``(II) properly allocable to any period after such date.''.
(b) Definition and Special Rules.--Section 163(h)(4)
(relating to other definitions and special rules) is amended
by adding at the end the following new subparagraphs:
``(E) Qualified mortgage insurance.--The term `qualified
mortgage insurance' means--
``(i) mortgage insurance provided by the Veterans
Administration, the Federal Housing Administration, or the
Rural Housing Administration, and
``(ii) private mortgage insurance (as defined by section 2
of the Homeowners Protection Act of 1998 (12 U.S.C. 4901), as
in effect on the date of the enactment of this subparagraph).
``(F) Special rules for prepaid qualified mortgage
insurance.--Any amount paid by the taxpayer for qualified
mortgage insurance that is properly allocable to any mortgage
the payment of which extends to periods that are after the
close of the taxable year in which such amount is paid shall
be chargeable to capital account and shall be treated as paid
in such periods to which so allocated. No deduction shall be
allowed for the unamortized balance of such account if such
mortgage is satisfied before the end of its term. The
preceding sentences shall not apply to amounts paid for
qualified mortgage insurance provided by the Veterans
Administration or the Rural Housing Administration.''.
(c) Information Returns Relating to Mortgage Insurance.--
Section 6050H (relating to returns relating to mortgage
interest received in trade or business from individuals) is
amended by adding at the end the following new subsection:
``(h) Returns Relating to Mortgage Insurance Premiums.--
``(1) In general.--The Secretary may prescribe, by
regulations, that any person who, in the course of a trade or
business, receives from any individual premiums for mortgage
insurance aggregating $600 or more for any calendar year,
shall make a return with respect to each such individual.
Such return shall be in such form, shall be made at such
time, and shall contain such information as the Secretary may
prescribe.
``(2) Statement to be furnished to individuals with respect
to whom information is required.--Every person required to
make a return under paragraph (1) shall furnish to each
individual with respect to whom a return is made a written
statement showing such information as the Secretary may
prescribe. Such written statement shall be furnished on or
before January 31 of the year following the calendar year for
which the return under paragraph (1) was required to be made.
``(3) Special rules.--For purposes of this subsection--
``(A) rules similar to the rules of subsection (c) shall
apply, and
``(B) the term `mortgage insurance' means--
``(i) mortgage insurance provided by the Veterans
Administration, the Federal Housing Administration, or the
Rural Housing Administration, and
``(ii) private mortgage insurance (as defined by section 2
of the Homeowners Protection Act of 1998 (12 U.S.C. 4901), as
in effect on the date of the enactment of this
subsection).''.
(d) Effective Date.--The amendments made by this section
shall apply to amounts paid or accrued after December 31,
2006.
SEC. 420. MODIFICATION OF REFUNDS FOR KEROSENE USED IN
AVIATION.
(a) In General.--Paragraph (4) of section 6427(l) (relating
to nontaxable uses of diesel fuel and kerosene) is amended to
read as follows:
``(4) Refunds for kerosene used in aviation.--
``(A) Kerosene used in commercial aviation.--In the case of
kerosene used in commercial aviation (as defined in section
4083(b)) (other than supplies for vessels or aircraft within
the meaning of section 4221(d)(3)), paragraph (1) shall not
apply to so much of the tax imposed by section 4041 or 4081,
as the case may be, as is attributable to--
``(i) the Leaking Underground Storage Tank Trust Fund
financing rate imposed by such section, and
``(ii) so much of the rate of tax specified in section
4041(c) or 4081(a)(2)(A)(iii), as the case may be, as does
not exceed 4.3 cents per gallon.
``(B) Kerosene used in noncommercial aviation.--In the case
of kerosene used in aviation that is not commercial aviation
(as so defined) (other than any use which is exempt from the
tax imposed by section 4041(c) other than by reason of a
prior imposition of tax), paragraph (1) shall not apply to--
``(i) any tax imposed by subsection (c) or (d)(2) of
section 4041, and
``(ii) so much of the tax imposed by section 4081 as is
attributable to--
``(I) the Leaking Underground Storage Tank Trust Fund
financing rate imposed by such section, and
``(II) so much of the rate of tax specified in section
4081(a)(2)(A)(iii) as does not exceed the rate specified in
section 4081(a)(2)(C)(ii).
``(C) Payments to ultimate, registered vendor.--
``(i) In general.--With respect to any kerosene used in
aviation (other than kerosene described in clause (ii) or
kerosene to which paragraph (5) applies), if the ultimate
purchaser of such kerosene waives (at such time and in such
form and manner as the Secretary shall prescribe) the right
to payment under paragraph (1) and assigns such right to the
ultimate vendor, then the Secretary shall pay the amount
which would be paid under paragraph (1) to such ultimate
vendor, but only if such ultimate vendor--
``(I) is registered under section 4101, and
``(II) meets the requirements of subparagraph (A), (B), or
(D) of section 6416(a)(1).
``(ii) Payments for kerosene used in noncommercial
aviation.--The amount which would be paid under paragraph (1)
with respect to any kerosene to which subparagraph (B)
applies shall be paid only to the ultimate vendor of such
kerosene. A payment shall be made to such vendor if such
vendor--
``(I) is registered under section 4101, and
``(II) meets the requirements of subparagraph (A), (B), or
(D) of section 6416(a)(1).''.
(b) Conforming Amendments.--
(1) Section 6427(l) is amended by striking paragraph (5)
and by redesignating paragraph (6) as paragraph (5).
(2) Section 4082(d)(2)(B) is amended by striking ``section
6427(l)(6)(B)'' and inserting ``section 6427(l)(5)(B)''.
(3) Section 6427(i)(4)(A) is amended--
(A) by striking ``paragraph (4)(B), (5), or (6)'' each
place it appears and inserting ``paragraph (4)(C) or (5)'',
and
(B) by striking ``(l)(5), and (l)(6)'' and inserting
``(l)(4)(C)(ii), and (l)(5)''.
(4) Section 6427(l)(1) is amended by striking ``paragraph
(4)(B)'' and inserting ``paragraph (4)(C)(i)''.
(5) Section 9502(d) is amended--
(A) in paragraph (2), by striking ``and (l)(5)'', and
(B) in paragraph (3), by striking ``or (5)''.
(6) Section 9503(c)(7) is amended--
(A) by amending subparagraphs (A) and (B) to read as
follows:
``(A) 4.3 cents per gallon of kerosene subject to section
6427(l)(4)(A) with respect to which a payment has been made
by the Secretary under section 6427(l), and
``(B) 21.8 cents per gallon of kerosene subject to section
6427(l)(4)(B) with respect to which a payment has been made
by the Secretary under section 6427(l).'', and
(B) in the matter following subparagraph (B), by striking
``or (5)''.
(c) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to kerosene sold after September 30, 2005.
(2) Special rule for pending claims.--In the case of
kerosene sold for use in aviation (other than kerosene to
which section 6427(l)(4)(C)(ii) of the Internal Revenue Code
of 1986 (as added by subsection (a)) applies or kerosene to
which section 6427(l)(5) of such Code (as redesignated by
subsection (b)) applies) after September 30, 2005, and before
the date of the enactment of this Act, the ultimate purchaser
shall be treated as having waived the right to payment under
section 6427(l)(1) of such Code and as having assigned such
right to the ultimate vendor if such ultimate vendor has met
the requirements of subparagraph (A), (B), or (D) of section
6416(a)(1) of such Code.
(d) Special Rule for Kerosene Used in Aviation on a Farm
for Farming Purposes.--
(1) Refunds for purchases after december 31, 2004, and
before october 1, 2005.--
[[Page H9036]]
The Secretary of the Treasury shall pay to the ultimate
purchaser of any kerosene which is used in aviation on a farm
for farming purposes and which was purchased after December
31, 2004, and before October 1, 2005, an amount equal to the
aggregate amount of tax imposed on such fuel under section
4041 or 4081 of the Internal Revenue Code of 1986, as the
case may be, reduced by any payment to the ultimate vendor
under section 6427(l)(5)(C) of such Code (as in effect on the
day before the date of the enactment of the Safe,
Accountable, Flexible, Efficient Transportation Equity Act: a
Legacy for Users).
(2) Use on a farm for farming purposes.--For purposes of
paragraph (1), kerosene shall be treated as used on a farm
for farming purposes if such kerosene is used for farming
purposes (within the meaning of section 6420(c)(3) of the
Internal Revenue Code of 1986) in carrying on a trade or
business on a farm situated in the United States. For
purposes of the preceding sentence, rules similar to the
rules of section 6420(c)(4) of such Code shall apply.
(3) Time for filing claims.--No claim shall be allowed
under paragraph (1) unless the ultimate purchaser files such
claim before the date that is 3 months after the date of the
enactment of this Act.
(4) No double benefit.--No amount shall be paid under
paragraph (1) or section 6427(l) of the Internal Revenue Code
of 1986 with respect to any kerosene described in paragraph
(1) to the extent that such amount is in excess of the tax
imposed on such kerosene under section 4041 or 4081 of such
Code, as the case may be.
(5) Applicable laws.--For purposes of this subsection,
rules similar to the rules of section 6427(j) of the Internal
Revenue Code of 1986 shall apply.
SEC. 421. REGIONAL INCOME TAX AGENCIES TREATED AS STATES FOR
PURPOSES OF CONFIDENTIALITY AND DISCLOSURE
REQUIREMENTS.
(a) In General.--Paragraph (5) of section 6103(b) is
amended to read as follows:
``(5) State.--
``(A) In general.--The term `State' means--
``(i) any of the 50 States, the District of Columbia, the
Commonwealth of Puerto Rico, the Virgin Islands, the Canal
Zone, Guam, American Samoa, and the Commonwealth of the
Northern Mariana Islands,
``(ii) for purposes of subsections (a)(2), (b)(4), (d)(1),
(h)(4), and (p), any municipality--
``(I) with a population in excess of 250,000 (as determined
under the most recent decennial United States census data
available),
``(II) which imposes a tax on income or wages, and
``(III) with which the Secretary (in his sole discretion)
has entered into an agreement regarding disclosure, and
``(iii) for purposes of subsections (a)(2), (b)(4), (d)(1),
(h)(4), and (p), any governmental entity--
``(I) which is formed and operated by a qualified group of
municipalities, and
``(II) with which the Secretary (in his sole discretion)
has entered into an agreement regarding disclosure.
``(B) Regional income tax agencies.--For purposes of
subparagraph (A)(iii)--
``(i) Qualified group of municipalities.--The term
`qualified group of municipalities' means, with respect to
any governmental entity, 2 or more municipalities--
``(I) each of which imposes a tax on income or wages,
``(II) each of which, under the authority of a State
statute, administers the laws relating to the imposition of
such taxes through such entity, and
``(III) which collectively have a population in excess of
250,000 (as determined under the most recent decennial United
States census data available).
``(ii) References to state law, etc.--For purposes of
applying subparagraph (A)(iii) to the subsections referred to
in such subparagraph, any reference in such subsections to
State law, proceedings, or tax returns shall be treated as
references to the law, proceedings, or tax returns, as the
case may be, of the municipalities which form and operate the
governmental entity referred to in such subparagraph.
``(iii) Disclosure to contractors and other agents.--
Notwithstanding any other provision of this section, no
return or return information shall be disclosed to any
contractor or other agent of a governmental entity referred
to in subparagraph (A)(iii) unless such entity, to the
satisfaction of the Secretary--
``(I) has requirements in effect which require each such
contractor or other agent which would have access to returns
or return information to provide safeguards (within the
meaning of subsection (p)(4)) to protect the confidentiality
of such returns or return information,
``(II) agrees to conduct an on-site review every 3 years
(or a mid-point review in the case of contracts or agreements
of less than 3 years in duration) of each contractor or other
agent to determine compliance with such requirements,
``(III) submits the findings of the most recent review
conducted under subclause (II) to the Secretary as part of
the report required by subsection (p)(4)(E), and
``(IV) certifies to the Secretary for the most recent
annual period that such contractor or other agent is in
compliance with all such requirements.
The certification required by subclause (IV) shall include
the name and address of each contractor and other agent, a
description of the contract or agreement with such contractor
or other agent, and the duration of such contract or
agreement. The requirements of this clause shall not apply to
disclosures pursuant to subsection (n) for purposes of
Federal tax administration and a rule similar to the rule of
subsection (p)(8)(B) shall apply for purposes of this
clause.''.
(b) Special Rules for Disclosure.--Subsection (d) of
section 6103 is amended by adding at the end the following
new paragraph:
``(6) Limitation on disclosure regarding regional income
tax agencies treated as states.--For purposes of paragraph
(1), inspection by or disclosure to an entity described in
subsection (b)(5)(A)(iii) shall be for the purpose of, and
only to the extent necessary in, the administration of the
laws of the member municipalities in such entity relating to
the imposition of a tax on income or wages. Such entity may
not redisclose any return or return information received
pursuant to paragraph (1) to any such member municipality.''.
(c) Effective Date.--The amendments made by this section
shall apply to disclosures made after December 31, 2006.
SEC. 422. DESIGNATION OF WINES BY SEMI-GENERIC NAMES.
(a) In General.--Subsection (c) of section 5388 (relating
to use of semi-generic designations) is amended by adding at
the end the following new paragraph:
``(3) Special rule for use of certain semi-generic
designations.--
``(A) In general.--In the case of any wine to which this
paragraph applies--
``(i) paragraph (1) shall not apply,
``(ii) in the case of wine of the European Community,
designations referred to in subparagraph (C)(i) may be used
for such wine only if the requirement of subparagraph (B)(ii)
is met, and
``(iii) in the case any other wine bearing a brand name, or
brand name and fanciful name, semi-generic designations may
be used for such wine only if the requirements of clauses
(i), (ii), and (iii) of subparagraph (B) are met.
``(B) Requirements.--
``(i) The requirement of this clause is met if there
appears in direct conjunction with the semi-generic
designation an appropriate appellation of origin disclosing
the origin of the wine.
``(ii) The requirement of this clause is met if the wine
conforms to the standard of identity, if any, for such wine
contained in the regulations under this section or, if there
is no such standard, to the trade understanding of such class
or type.
``(iii) The requirement of this clause is met if the
person, or its successor in interest, using the semi-generic
designation held a Certificate of Label Approval or
Certificate of Exemption from Label Approval issued by the
Secretary for a wine label bearing such brand name, or brand
name and fanciful name, before March 10, 2006, on which such
semi-generic designation appeared.
``(C) Wines to which paragraph applies.--
``(i) In general.--Except as provided in clause (ii), this
paragraph shall apply to any grape wine which is designated
as Burgundy, Claret, Chablis, Champagne, Chianti, Malaga,
Marsala, Madeira, Moselle, Port, Retsina, Rhine Wine or Hock,
Sauterne, Haut Sauterne, Sherry, or Tokay.
``(ii) Exception.--This paragraph shall not apply to wine
which--
``(I) contains less than 7 percent or more than 24 percent
alcohol by volume,
``(II) is intended for sale outside the United States, or
``(III) does not bear a brand name.''.
(b) Effective Date.--The amendments made by this section
shall apply to wine imported or bottled in the United States
on or after the date of enactment of this Act.
SEC. 423. MODIFICATION OF RAILROAD TRACK MAINTENANCE CREDIT.
(a) In General.--Section 45G(d) (defining qualified
railroad track maintenance expenditures) is amended--
(1) by inserting ``gross'' after ``means'', and
(2) by inserting ``(determined without regard to any
consideration for such expenditures given by the Class II or
Class III railroad which made the assignment of such track)''
after ``Class II or Class III railroad''.
(b) Effective Date.--The amendment made by this section
shall take effect as if included in the amendment made by
section 245(a) of the American Jobs Creation Act of 2004.
SEC. 424. MODIFICATION OF EXCISE TAX ON UNRELATED BUSINESS
TAXABLE INCOME OF CHARITABLE REMAINDER TRUSTS.
(a) In General.--Subsection (c) of section 664 (relating to
exemption from income taxes) is amended to read as follows:
``(c) Taxation of Trusts.--
``(1) Income tax.--A charitable remainder annuity trust and
a charitable remainder unitrust shall, for any taxable year,
not be subject to any tax imposed by this subtitle.
``(2) Excise tax.--
``(A) In general.--In the case of a charitable remainder
annuity trust or a charitable remainder unitrust which has
unrelated business taxable income (within the meaning of
section 512, determined as if part III of subchapter F
applied to such trust) for a taxable year, there is hereby
imposed on such trust or unitrust an excise tax equal to the
amount of such unrelated business taxable income.
``(B) Certain rules to apply.--The tax imposed by
subparagraph (A) shall be treated
[[Page H9037]]
as imposed by chapter 42 for purposes of this title other
than subchapter E of chapter 42.
``(C) Tax court proceedings.--For purposes of this
paragraph, the references in section 6212(c)(1) to section
4940 shall be deemed to include references to this
paragraph.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2006.
SEC. 425. LOANS TO QUALIFIED CONTINUING CARE FACILITIES MADE
PERMANENT.
(a) In General.--Subsection (h) of section 7872 (relating
to exception for loans to qualified continuing care
facilities) is amended by striking paragraph (4).
(b) Effective Date.--The amendment made by this section
shall take effect as if included in section 209 of the Tax
Increase Prevention and Reconciliation Act of 2005.
SEC. 426. TECHNICAL CORRECTIONS.
(a) Technical Correction Relating to Look-Through Treatment
of Payments Between Related Controlled Foreign Corporations
Under the Foreign Personal Holding Company Rules.--
(1) In general.--
(A) The first sentence of section 954(c)(6)(A) is amended
by striking ``which is not subpart F income'' and inserting
``which is neither subpart F income nor income treated as
effectively connected with the conduct of a trade or business
in the United States''.
(B) Section 954(c)(6)(A) is amended by striking the last
sentence and inserting the following: ``The Secretary shall
prescribe such regulations as may be necessary or appropriate
to carry out this paragraph, including such regulations as
may be necessary or appropriate to prevent the abuse of the
purposes of this paragraph.''
(2) Effective date.--The amendments made by this subsection
shall take effect as if included in section 103(b) of the Tax
Increase Prevention and Reconciliation Act of 2005.
(b) Technical Correction Regarding Authority to Exercise
Reasonable Cause and Good Faith Exception.--
(1) In general.--Section 903(d)(2)(B)(iii) of the American
Jobs Creation Act of 2004, as amended by section 303(a) of
the Gulf Opportunity Zone Act of 2005, is amended by
inserting ``or the Secretary's delegate'' after ``the
Secretary of the Treasury''.
(2) Effective date.--The amendment made by this subsection
shall take effect as if included in the provisions of the
American Jobs Creation Act of 2004 to which it relates.
DIVISION B--MEDICARE AND OTHER HEALTH PROVISIONS
SEC. 1. SHORT TITLE OF DIVISION.
This division may be cited as the ``Medicare Improvements
and Extension Act of 2006''.
TITLE I--MEDICARE IMPROVED QUALITY AND PROVIDER PAYMENTS
SEC. 101. PHYSICIAN PAYMENT AND QUALITY IMPROVEMENT.
(a) One-Year Increase in Medicare Physician Fee Schedule
Conversion Factor.--Section 1848(d) of the Social Security
Act (42 U.S.C. 1395w-4(d)) is amended by adding at the end
the following new paragraph:
``(7) Conversion factor for 2007.--
``(A) In general.--The conversion factor that would
otherwise be applicable under this subsection for 2007 shall
be the amount of such conversion factor divided by the
product of--
``(i) 1 plus the Secretary's estimate of the percentage
increase in the MEI (as defined in section 1842(i)(3)) for
2007 (divided by 100); and
``(ii) 1 plus the Secretary's estimate of the update
adjustment factor under paragraph (4)(B) for 2007.
``(B) No effect on computation of conversion factor for
2008.--The conversion factor under this subsection shall be
computed under paragraph (1)(A) for 2008 as if subparagraph
(A) had never applied.''.
(b) Quality Reporting System.--Section 1848 of the Social
Security Act (42 U.S.C. 1395w-4) is amended by adding at the
end the following new subsection:
``(k) Quality Reporting System.--
``(1) In general.--The Secretary shall implement a system
for the reporting by eligible professionals of data on
quality measures specified under paragraph (2). Such data
shall be submitted in a form and manner specified by the
Secretary (by program instruction or otherwise), which may
include submission of such data on claims under this part.
``(2) Use of consensus-based quality measures.--
``(A) For 2007.--
``(i) In general.--For purposes of applying this subsection
for the reporting of data on quality measures for covered
professional services furnished during the period beginning
July 1, 2007, and ending December 31, 2007, the quality
measures specified under this paragraph are the measures
identified as 2007 physician quality measures under the
Physician Voluntary Reporting Program as published on the
public website of the Centers for Medicare & Medicaid
Services as of the date of the enactment of this subsection,
except as may be changed by the Secretary based on the
results of a consensus-based process in January of 2007, if
such change is published on such website by not later than
April 1, 2007.
``(ii) Subsequent refinements in application permitted.--
The Secretary may, from time to time (but not later than July
1, 2007), publish on such website (without notice or
opportunity for public comment) modifications or refinements
(such as code additions, corrections, or revisions) for the
application of quality measures previously published under
clause (i), but may not, under this clause, change the
quality measures under the reporting system.
``(iii) Implementation.--Notwithstanding any other
provision of law, the Secretary may implement by program
instruction or otherwise this subsection for 2007.
``(B) For 2008.--
``(i) In general.--For purposes of reporting data on
quality measures for covered professional services furnished
during 2008, the quality measures specified under this
paragraph for covered professional services shall be measures
that have been adopted or endorsed by a consensus
organization (such as the National Quality Forum or AQA),
that include measures that have been submitted by a physician
specialty, and that the Secretary identifies as having used a
consensus-based process for developing such measures. Such
measures shall include structural measures, such as the use
of electronic health records and electronic prescribing
technology.
``(ii) Proposed set of measures.--Not later than August 15,
2007, the Secretary shall publish in the Federal Register a
proposed set of quality measures that the Secretary
determines are described in clause (i) and would be
appropriate for eligible professionals to use to submit data
to the Secretary in 2008. The Secretary shall provide for a
period of public comment on such set of measures.
``(iii) Final set of measures.--Not later than November 15,
2007, the Secretary shall publish in the Federal Register a
final set of quality measures that the Secretary determines
are described in clause (i) and would be appropriate for
eligible professionals to use to submit data to the Secretary
in 2008.
``(3) Covered professional services and eligible
professionals defined.--For purposes of this subsection:
``(A) Covered professional services.--The term `covered
professional services' means services for which payment is
made under, or is based on, the fee schedule established
under this section and which are furnished by an eligible
professional.
``(B) Eligible professional.--The term `eligible
professional' means any of the following:
``(i) A physician.
``(ii) A practitioner described in section 1842(b)(18)(C).
``(iii) A physical or occupational therapist or a qualified
speech-language pathologist.
``(4) Use of registry-based reporting.--As part of the
publication of proposed and final quality measures for 2008
under clauses (ii) and (iii) of paragraph (2)(B), the
Secretary shall address a mechanism whereby an eligible
professional may provide data on quality measures through an
appropriate medical registry (such as the Society of Thoracic
Surgeons National Database), as identified by the Secretary.
``(5) Identification units.--For purposes of applying this
subsection, the Secretary may identify eligible professionals
through billing units, which may include the use of the
Provider Identification Number, the unique physician
identification number (described in section 1833(q)(1)), the
taxpayer identification number, or the National Provider
Identifier. For purposes of applying this subsection for
2007, the Secretary shall use the taxpayer identification
number as the billing unit.
``(6) Education and outreach.--The Secretary shall provide
for education and outreach to eligible professionals on the
operation of this subsection.
``(7) Limitations on review.--There shall be no
administrative or judicial review under section 1869, section
1878, or otherwise, of the development and implementation of
the reporting system under paragraph (1), including
identification of quality measures under paragraph (2) and
the application of paragraphs (4) and (5).
``(8) Implementation.--The Secretary shall carry out this
subsection acting through the Administrator of the Centers
for Medicare & Medicaid Services.''.
(c) Transitional Bonus Incentive Payments for Quality
Reporting in 2007.--
(1) In general.--With respect to covered professional
services furnished during a reporting period (as defined in
paragraph (6)(C)) by an eligible professional, if--
(A) there are any quality measures that have been
established under the physician reporting system that are
applicable to any such services furnished by such
professional for such period, and
(B) the eligible professional satisfactorily submits (as
determined under paragraph (2)) to the Secretary data on such
quality measures in accordance with such reporting system for
such reporting period,
in addition to the amount otherwise paid under part B of
title XVIII of the Social Security Act, subject to paragraph
(3), there also shall be paid to the eligible professional
(or to an employer or facility in the cases described in
clause (A) of section 1842(b)(6) of the Social Security Act
(42 U.S.C. 1395u(b)(6))) from the Federal Supplementary
Medical Insurance Trust Fund established under section 1841
of such Act (42 U.S.C. 1395t) an amount equal to 1.5 percent
of the Secretary's estimate (based on claims submitted not
later than two months after the
[[Page H9038]]
end of the reporting period) of the allowed charges under
such part for all such covered professional services
furnished during the reporting period.
(2) Satisfactory reporting described.--For purposes of
paragraph (1), an eligible professional shall be treated as
satisfactorily submitting data on quality measures for
covered professional services for a reporting period if
quality measures have been reported as follows:
(A) Three or fewer quality measures applicable.--If there
are no more than 3 quality measures that are provided under
the physician reporting system and that are applicable to
such services of such professional furnished during the
period, each such quality measure has been reported under
such system in at least 80 percent of the cases in which such
measure is reportable under the system.
(B) Four or more quality measures applicable.--If there are
4 or more quality measures that are provided under the
physician reporting system and that are applicable to such
services of such professional furnished during the period, at
least 3 such quality measures have been reported under such
system in at least 80 percent of the cases in which the
respective measure is reportable under the system.
(3) Payment limitation.--
(A) In general.--In no case shall the total payment made
under this subsection to an eligible professional (or to an
employer or facility in the cases described in clause (A) of
section 1842(b)(6) of the Social Security Act) exceed the
product of--
(i) the total number of quality measures for which data are
submitted under the physician reporting system for covered
professional services of such professional that are furnished
during the reporting period; and
(ii) 300 percent of the average per measure payment amount
specified in subparagraph (B).
(B) Average per measure payment amount specified.--The
average per measure payment amount specified in this
subparagraph is an amount, estimated by the Secretary (based
on claims submitted not later than two months after the end
of the reporting period), equal to--
(i) the total of the amount of allowed charges under part B
of title XVIII of the Social Security Act for all covered
professional services furnished during the reporting period
on claims for which quality measures are reported under the
physician reporting system; divided by
(ii) the total number of quality measures for which data
are reported under such system for covered professional
services furnished during the reporting period.
(4) Form of payment.--The payment under this subsection
shall be in the form of a single consolidated payment.
(5) Application.--
(A) Physician reporting system rules.--Paragraphs (5), (6),
and (8) of section 1848(k) of the Social Security Act, as
added by subsection (b), shall apply for purposes of this
subsection in the same manner as they apply for purposes of
such section.
(B) Coordination with other bonus payments.--The provisions
of this subsection shall not be taken into account in
applying subsections (m) and (u) of section 1833 of the
Social Security Act (42 U.S.C. 1395l) and any payment under
such subsections shall not be taken into account in computing
allowable charges under this subsection.
(C) Implementation.--Notwithstanding any other provision of
law, the Secretary may implement by program instruction or
otherwise this subsection.
(D) Validation.--
(i) In general.--Subject to the succeeding provisions of
this subparagraph, for purposes of determining whether a
measure is applicable to the covered professional services of
an eligible professional under paragraph (2), the Secretary
shall presume that if an eligible professional submits data
for a measure, such measure is applicable to such
professional.
(ii) Method.-- The Secretary shall validate (by sampling or
other means as the Secretary determines to be appropriate)
whether measures applicable to covered professional services
of an eligible professional have been reported.
(iii) Denial of payment authority.--If the Secretary
determines that an eligible professional has not reported
measures applicable to covered professional services of such
professional, the Secretary shall not pay the bonus incentive
payment.
(E) Limitations on review.--
(i) In general.--There shall be no administrative or
judicial review under section 1869 or 1878 of the Social
Security Act or otherwise of--
(I) the determination of measures applicable to services
furnished by eligible professionals under this subsection;
(II) the determination of satisfactory reporting under
paragraph (2);
(III) the determination of the payment limitation under
paragraph (3); and
(IV) the determination of the bonus incentive payment under
this subsection.
(ii) Treatment of determinations.--A determination under
this subsection shall not be treated as a determination for
purposes of section 1869 of the Social Security Act.
(6) Definitions.--For purposes of this subsection:
(A) Eligible professional; covered professional services.--
The terms ``eligible professional'' and ``covered
professional services'' have the meanings given such terms in
section 1848(k)(3) of the Social Security Act, as added by
subsection (b).
(B) Physician reporting system.--The term ``physician
reporting system'' means the system established under section
1848(k) of the Social Security Act, as added by subsection
(b).
(C) Reporting period.--The term ``reporting period'' means
the period beginning on July 1, 2007, and ending on December
31, 2007.
(D) Secretary.--The term ``Secretary'' means the Secretary
of Health and Human Services.
(d) Physician Assistance and Quality Initiative Fund.--
Section 1848 of the Social Security Act, as amended by
subsection (b), is further amended by adding at the end the
following new subsection:
``(l) Physician Assistance and Quality Initiative Fund.--
``(1) Establishment.--The Secretary shall establish under
this subsection a Physician Assistance and Quality Initiative
Fund (in this subsection referred to as the `Fund') which
shall be available to the Secretary for physician payment and
quality improvement initiatives, which may include
application of an adjustment to the update of the conversion
factor under subsection (d).
``(2) Funding.--
``(A) Amount available.--There shall be available to the
Fund for expenditures an amount equal to $1,350,000,000.
``(B) Timely obligation of all available funds for services
furnished during 2008.--The Secretary shall provide for
expenditures from the Fund in a manner designed to provide
(to the maximum extent feasible) for the obligation of the
entire amount specified in subparagraph (A) for payment with
respect to physicians' services furnished during 2008.
``(C) Payment from trust fund.--The amount specified in
subparagraph (A) shall be available to the Fund, as
expenditures are made from the Fund, from the Federal
Supplementary Medical Insurance Trust Fund under section
1841.
``(D) Funding limitation.--Amounts in the Fund shall be
available in advance of appropriations in accordance with
subparagraph (B) but only if the total amount obligated from
the Fund does not exceed the amount available to the Fund
under subparagraph (A). The Secretary may obligate funds from
the Fund only if the Secretary determines (and the Chief
Actuary of the Centers for Medicare & Medicaid Services and
the appropriate budget officer certify) that there are
available in the Fund sufficient amounts to cover all such
obligations incurred consistent with the previous sentence.
``(E) Construction.--In the case that expenditures from the
Fund are applied to, or otherwise affect, a conversion factor
under subsection (d) for a year, the conversion factor under
such subsection shall be computed for a subsequent year as if
such application or effect had never occurred.''.
(e) Implementation.--For purposes of implementing the
provisions of, and amendments made by, this section, the
Secretary of Health and Human Services shall provide for the
transfer, from the Federal Supplementary Medical Insurance
Trust Fund established under section 1841 of the Social
Security Act (42 U.S.C. 1395t), of $60,000,000 to the Centers
for Medicare & Medicaid Services Program Management Account
for the period of fiscal years 2007, 2008, and 2009.
SEC. 102. EXTENSION OF FLOOR ON MEDICARE WORK GEOGRAPHIC
ADJUSTMENT.
Section 1848(e)(1)(E) of the Social Security Act (42 U.S.C.
1395w-4(e)(1)(E)) is amended by striking ``before January 1,
2007'' and inserting ``before January 1, 2008''.
SEC. 103. UPDATE TO THE COMPOSITE RATE COMPONENT OF THE BASIC
CASE-MIX ADJUSTED PROSPECTIVE PAYMENT SYSTEM
FOR DIALYSIS SERVICES.
(a) In General.--Section 1881(b)(12)(G) of the Social
Security Act (42 U.S.C. 1395rr(b)(12)(G)) is amended to read
as follows:
``(G) The Secretary shall increase the amount of the
composite rate component of the basic case-mix adjusted
system under subparagraph (B) for dialysis services--
``(i) furnished on or after January 1, 2006, and before
April 1, 2007, by 1.6 percent above the amount of such
composite rate component for such services furnished on
December 31, 2005; and
``(ii) furnished on or after April 1, 2007, by 1.6 percent
above the amount of such composite rate component for such
services furnished on March 31, 2007.''.
(b) GAO Report on Home Dialysis Payment.--Not later than
January 1, 2009, the Comptroller General of the United States
shall submit to Congress a report on the costs for home
hemodialysis treatment and patient training for both home
hemodialysis and peritoneal dialysis. Such report shall also
include recommendations for a payment methodology for payment
under section 1881 of the Social Security Act (42 U.S.C.
1395rr) that measures, and is based on, the costs of
providing such services and takes into account the case mix
of patients.
SEC. 104. EXTENSION OF TREATMENT OF CERTAIN PHYSICIAN
PATHOLOGY SERVICES UNDER MEDICARE.
Section 542(c) of the Medicare, Medicaid, and SCHIP
Benefits Improvement and Protection Act of 2000 (as enacted
into law by section 1(a)(6) of Public Law 106-554), as
amended by section 732 of the Medicare Prescription Drug,
Improvement, and Modernization Act of 2003 (Public Law 108-
173), is
[[Page H9039]]
amended by striking ``and 2006'' and inserting ``, 2006, and
2007''.
SEC. 105. EXTENSION OF MEDICARE REASONABLE COSTS PAYMENTS FOR
CERTAIN CLINICAL DIAGNOSTIC LABORATORY TESTS
FURNISHED TO HOSPITAL PATIENTS IN CERTAIN RURAL
AREAS.
Effective as if included in the enactment of section 416 of
the Medicare Prescription Drug, Improvement, and
Modernization Act of 2003 (42 U.S.C. 1395l-4), subsection (b)
of such section is amended by striking ``2-year period'' and
inserting ``3-year period''.
SEC. 106. HOSPITAL MEDICARE REPORTS AND CLARIFICATIONS.
(a) Correction of Mid-Year Reclassification Expiration.--
Notwithstanding any other provision of law, in the case of a
subsection (d) hospital (as defined for purposes of section
1886 of the Social Security Act (42 U.S.C. 1395ww)) with
respect to which a reclassification of its wage index for
purposes of such section would (but for this subsection)
expire on March 31, 2007, such reclassification of such
hospital shall be extended through September 30, 2007. The
previous sentence shall not be effected in a budget-neutral
manner.
(b) Revision of the Medicare Wage Index Classification
System.--
(1) Medpac report.--
(A) In general.--The Medicare Payment Advisory Commission
shall submit to Congress, by not later than June 30, 2007, a
report on its study of the wage index classification system
applied under Medicare prospective payment systems, including
under section 1886(d)(3)(E) of the Social Security Act (42
U.S.C. 1395ww(d)(3)(E)). Such report shall include any
alternatives the Commission recommends to the method to
compute the wage index under such section.
(B) Funding.--Out of any funds in the Treasury not
otherwise appropriated, there are appropriated to the
Medicare Payment Advisory Commission, $2,000,000 for fiscal
year 2007 to carry out this paragraph.
(2) Proposal to revise the hospital wage index
classification system.-- The Secretary of Health and Human
Services, taking into account the recommendations described
in the report under paragraph (1), shall include in the
proposed rule published under section 1886(e)(5)(A) of the
Social Security Act (42 U.S.C. 1395ww(e)(5)(A)) for fiscal
year 2009 one or more proposals to revise the wage index
adjustment applied under section 1886(d)(3)(E) of such Act
(42 U.S.C. 1395ww(d)(3)(E)) for purposes of the Medicare
prospective payment system for inpatient hospital services.
Such proposal (or proposals) shall consider each of the
following:
(A) Problems associated with the definition of labor
markets for purposes of such wage index adjustment.
(B) The modification or elimination of geographic
reclassifications and other adjustments.
(C) The use of Bureau of Labor Statistics data, or other
data or methodologies, to calculate relative wages for each
geographic area involved.
(D) Minimizing variations in wage index adjustments between
and within Metropolitan Statistical Areas and Statewide rural
areas.
(E) The feasibility of applying all components of the
proposal to other settings, including home health agencies
and skilled nursing facilities.
(F) Methods to minimize the volatility of wage index
adjustments, while maintaining the principle of budget
neutrality in applying such adjustments.
(G) The effect that the implementation of the proposal
would have on health care providers and on each region of the
country.
(H) Methods for implementing the proposal, including
methods to phase-in such implementation.
(I) Issues relating to occupational mix, such as staffing
practices and any evidence on the effect on quality of care
and patient safety and any recommendations for alternative
calculations.
(c) Elimination of Unnecessary Report.--Section 1886 of the
Social Security Act (42 U.S.C. 1395ww) is amended--
(1) in subsection (d)(4)(C), by striking clause (iv); and
(2) in subsection (e), by striking paragraph (3).
SEC. 107. PAYMENT FOR BRACHYTHERAPY.
(a) Extension of Payment Rule.--Section 1833(t)(16)(C) of
the Social Security Act (42 U.S.C. 1395l(t)(16)(C)) is
amended by striking ``January 1, 2007'' and inserting
``January 1, 2008''.
(b) Establishment of Separate Payment Groups.--
(1) In general.--Section 1833(t)(2)(H) of such Act (42
U.S.C. 1395l(t)(2)(H)) is amended by inserting ``and for
stranded and non-stranded devices furnished on or after July
1, 2007'' before the period at the end.
(2) Implementation.--The Secretary of Health and Human
Services may implement the amendment made by paragraph (1) by
program instruction or otherwise.
SEC. 108. PAYMENT PROCESS UNDER THE COMPETITIVE ACQUISITION
PROGRAM (CAP).
(a) In General.--Section 1847B(a)(3) of the Social Security
Act (42 U.S.C. 1395w-3b(a)(3)) is amended--
(1) in subparagraph (A)(iii), by striking ``and
biologicals'' and all that follows and inserting ``and
biologicals shall be made only to such contractor upon
receipt of a claim for a drug or biological supplied by the
contractor for administration to a beneficiary.''; and
(2) by adding at the end the following new subparagraph:
``(D) Post-payment review process.--The Secretary shall
establish (by program instruction or otherwise) a post-
payment review process (which may include the use of
statistical sampling) to assure that payment is made for a
drug or biological under this section only if the drug or
biological has been administered to a beneficiary. The
Secretary shall recoup, offset, or collect any overpayments
determined by the Secretary under such process.''.
(b) Construction.--Nothing in this section shall be
construed as--
(1) requiring the conduct of any additional competition
under subsection (b)(1) of section 1847B of the Social
Security Act (42 U.S.C. 1395w-3b); or
(2) requiring any additional process for elections by
physicians under subsection (a)(1)(A)(ii) of such section or
additional selection by a selecting physician of a contractor
under subsection (a)(5) of such section.
(c) Effective Date.--The amendments made by subsection (a)
shall apply to payment for drugs and biologicals supplied
under section 1847B of the Social Security Act (42 U.S.C.
1395w-3b)--
(1) on or after April 1, 2007; and
(2) on or after July 1, 2006, and before April 1, 2007, for
claims that are unpaid as of April 1, 2007.
SEC. 109. QUALITY REPORTING FOR HOSPITAL OUTPATIENT SERVICES
AND AMBULATORY SURGICAL CENTER SERVICES.
(a) Outpatient Hospital Services.--
(1) In general.--Section 1833(t) of the Social Security Act
(42 U.S.C. 1395l(t)) is amended--
(A) in paragraph (3)(C)(iv), by inserting ``subject to
paragraph (17),'' after ``For purposes of this
subparagraph,''; and
(B) by adding at the end the following new paragraph:
``(17) Quality reporting.--
``(A) Reduction in update for failure to report.--
``(i) In general.--For purposes of paragraph (3)(C)(iv) for
2009 and each subsequent year, in the case of a subsection
(d) hospital (as defined in section 1886(d)(1)(B)) that does
not submit, to the Secretary in accordance with this
paragraph, data required to be submitted on measures selected
under this paragraph with respect to such a year, the OPD fee
schedule increase factor under paragraph (3)(C)(iv) for such
year shall be reduced by 2.0 percentage points.
``(ii) Non-cumulative application.--A reduction under this
subparagraph shall apply only with respect to the year
involved and the Secretary shall not take into account such
reduction in computing the OPD fee schedule increase factor
for a subsequent year.
``(B) Form and manner of submission.--Each subsection (d)
hospital shall submit data on measures selected under this
paragraph to the Secretary in a form and manner, and at a
time, specified by the Secretary for purposes of this
paragraph.
``(C) Development of outpatient measures.--
``(i) In general.--The Secretary shall develop measures
that the Secretary determines to be appropriate for the
measurement of the quality of care (including medication
errors) furnished by hospitals in outpatient settings and
that reflect consensus among affected parties and, to the
extent feasible and practicable, shall include measures set
forth by one or more national consensus building entities.
``(ii) Construction.--Nothing in this paragraph shall be
construed as preventing the Secretary from selecting measures
that are the same as (or a subset of) the measures for which
data are required to be submitted under section
1886(b)(3)(B)(viii).
``(D) Replacement of measures.--For purposes of this
paragraph, the Secretary may replace any measures or
indicators in appropriate cases, such as where all hospitals
are effectively in compliance or the measures or indicators
have been subsequently shown not to represent the best
clinical practice.
``(E) Availability of data.--The Secretary shall establish
procedures for making data submitted under this paragraph
available to the public. Such procedures shall ensure that a
hospital has the opportunity to review the data that are to
be made public with respect to the hospital prior to such
data being made public. The Secretary shall report quality
measures of process, structure, outcome, patients'
perspectives on care, efficiency, and costs of care that
relate to services furnished in outpatient settings in
hospitals on the Internet website of the Centers for Medicare
& Medicaid Services.''.
(2) Conforming amendment.--Section 1886(b)(3)(B)(viii)(III)
of such Act (42 U.S.C. 1395ww(b)(3)(B)(viii)(III)) is amended
by inserting ``(including medication errors)'' after
``quality of care''.
(b) Application to Ambulatory Surgical Centers.--Section
1833(i) of such Act (42 U.S.C. 1935l(i)) is amended--
(1) in paragraph (2)(D), by redesignating clause (iv) as
clause (v) and by inserting after clause (iii) the following
new clause:
``(iv) The Secretary may implement such system in a manner
so as to provide for a reduction in any annual update for
failure to report on quality measures in accordance with
paragraph (7).''; and
[[Page H9040]]
(2) by adding at the end the following new paragraph:
``(7)(A) For purposes of paragraph (2)(D)(iv), the
Secretary may provide, in the case of an ambulatory surgical
center that does not submit, to the Secretary in accordance
with this paragraph, data required to be submitted on
measures selected under this paragraph with respect to a
year, any annual increase provided under the system
established under paragraph (2)(D) for such year shall be
reduced by 2.0 percentage points. A reduction under this
subparagraph shall apply only with respect to the year
involved and the Secretary shall not take into account such
reduction in computing any annual increase factor for a
subsequent year.
``(B) Except as the Secretary may otherwise provide, the
provisions of subparagraphs (B), (C), (D), and (E) of
paragraph (17) of section 1833(t) shall apply with respect to
services of ambulatory surgical centers under this paragraph
in a similar manner to the manner in which they apply under
such paragraph and, for purposes of this subparagraph, any
reference to a hospital, outpatient setting, or outpatient
hospital services is deemed a reference to an ambulatory
surgical center, the setting of such a center, or services of
such a center, respectively.''.
(c) Effective Date.--The amendments made by this section
shall apply to payment for services furnished on or after
January 1, 2009.
SEC. 110. REPORTING OF ANEMIA QUALITY INDICATORS FOR MEDICARE
PART B CANCER ANTI-ANEMIA DRUGS.
(a) In General.--Section 1842 of the Social Security Act
(42 U.S.C. 1395u) is amended by adding at the end the
following new subsection:
``(u) Each request for payment, or bill submitted, for a
drug furnished to an individual for the treatment of anemia
in connection with the treatment of cancer shall include (in
a form and manner specified by the Secretary) information on
the hemoglobin or hematocrit levels for the individual.''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to drugs furnished on or after January 1, 2008.
The Secretary of Health and Human Services shall address the
implementation of such amendment in the rulemaking process
under section 1848 of the Social Security Act (42 U.S.C.
1395w-4) for payment for physicians' services for 2008,
consistent with the previous sentence.
SEC. 111. CLARIFICATION OF HOSPICE SATELLITE DESIGNATION.
Notwithstanding any other provision of law, for purposes of
calculating the hospice aggregate payment cap for 2004, 2005,
and 2006 for a hospice program under section 1814(i)(2)(A) of
the Social Security Act (42 U.S.C. 1395f(i)(2)(A)) for
hospice care provided on or after November 1, 2003, and
before December 27, 2005, Medicare provider number 29-1511 is
deemed to be a multiple location of Medicare provider number
29-1500.
TITLE II--MEDICARE BENEFICIARY PROTECTIONS
SEC. 201. EXTENSION OF EXCEPTIONS PROCESS FOR MEDICARE
THERAPY CAPS.
Section 1833(g)(5) of the Social Security Act (42 U.S.C.
1395l(g)(5)) is amended by striking ``2006'' and inserting
``the period beginning on January 1, 2006, and ending on
December 31, 2007,''.
SEC. 202. PAYMENT FOR ADMINISTRATION OF PART D VACCINES.
(a) Transition for 2007.--Notwithstanding any other
provision of law, in the case of a vaccine that is a covered
part D drug under section 1860D-2(e) of the Social Security
Act (42 U.S.C. 1395w-102(e)) and that is administered during
2007, the administration of such vaccine shall be paid under
part B of title XVIII of such Act as if it were the
administration of a vaccine described in section
1861(s)(10)(B) of such Act (42 U.S.C. 1395w(s)(10)(B)).
(b) Administration Included in Coverage of Covered Part D
Drugs Beginning in 2008.--Section 1860D-2(e)(1) of the Social
Security Act (42 U.S.C. 1395w-102(e)(1)) is amended, in
the matter following subparagraph (B), by inserting
``(and, for vaccines administered on or after January 1,
2008, its administration)'' after ``Public Health Service
Act''.
SEC. 203. OIG STUDY OF NEVER EVENTS.
(a) Study.--
(1) In general.--The Inspector General in the Department of
Health and Human Services shall conduct a study on--
(A) incidences of never events for Medicare beneficiaries,
including types of such events and payments by any party for
such events;
(B) the extent to which the Medicare program paid, denied
payment, or recouped payment for services furnished in
connection with such events and the extent to which
beneficiaries paid for such services; and
(C) the administrative processes of the Centers for
Medicare & Medicaid Services to detect such events and to
deny or recoup payments for services furnished in connection
with such an event.
(2) Conduct of study.--In conducting the study under
paragraph (1), the Inspector General--
(A) shall audit a representative sample of claims and
medical records of Medicare beneficiaries to identify never
events and any payment (or recoupment) for services furnished
in connection with such events;
(B) may request access to such claims and records from any
Medicare contractor; and
(C) shall not release individually identifiable information
or facility-specific information.
(b) Report.--Not later than 2 years after the date of the
enactment of this Act, the Inspector General shall submit a
report to Congress on the study conducted under this section.
Such report shall include recommendations for such
legislation and administrative action, such as a noncoverage
policy or denial of payments, as the Inspector General
determines appropriate, including--
(1) recommendations on processes to identify never events
and to deny or recoup payments for services furnished in
connection with such events; and
(2) a recommendation on a potential process (or processes)
for public disclosure of never events which--
(A) will ensure protection of patient privacy; and
(B) will permit the use of the disclosed information for a
root cause analysis to inform the public and the medical
community about safety issues involved.
(c) Funding.--Out of any funds in the Treasury not
otherwise appropriated, there are appropriated to the
Inspector General of the Department of Health and Human
Services $3,000,000 to carry out this section, to be
available until January 1, 2010.
(d) Never Events Defined.--For purposes of this section,
the term ``never event'' means an event that is listed and
endorsed as a serious reportable event by the National
Quality Forum as of November 16, 2006.
SEC. 204. MEDICARE MEDICAL HOME DEMONSTRATION PROJECT.
(a) In General.--The Secretary of Health and Human Services
(in this section referred to as the ``Secretary'') shall
establish under title XVIII of the Social Security Act a
medical home demonstration project (in this section referred
to as the ``project'') to redesign the health care delivery
system to provide targeted, accessible, continuous and
coordinated, family-centered care to high-need populations
and under which--
(1) care management fees are paid to persons performing
services as personal physicians; and
(2) incentive payments are paid to physicians participating
in practices that provide services as a medical home under
subsection (d).
For purposes of this subsection, the term ``high-need
population'' means individuals with multiple chronic
illnesses that require regular medical monitoring, advising,
or treatment.
(b) Details.--
(1) Duration; scope.--The project shall operate during a
period of three years and shall include urban, rural, and
underserved areas in a total of no more than 8 States.
(2) Encouraging participation of small physician
practices.--The project shall be designed to include the
participation of physicians in practices with fewer than
three full-time equivalent physicians, as well as physicians
in larger practices particularly in rural and underserved
areas.
(c) Personal Physician Defined.--
(1) In general.--For purposes of this section, the term
``personal physician'' means a physician (as defined in
section 1861(r)(1) of the Social Security Act (42 U.S.C.
1395x(r)(1)) who--
(A) meets the requirements described in paragraph (2); and
(B) performs the services described in paragraph (3).
Nothing in this paragraph shall be construed as preventing
such a physician from being a specialist or subspecialist for
an individual requiring ongoing care for a specific chronic
condition or multiple chronic conditions (such as severe
asthma, complex diabetes, cardiovascular disease,
rheumatologic disorder) or for an individual with a prolonged
illness.
(2) Requirements.--The requirements described in this
paragraph for a personal physician are as follows:
(A) The physician is a board certified physician who
provides first contact and continuous care for individuals
under the physician's care.
(B) The physician has the staff and resources to manage the
comprehensive and coordinated health care of each such
individual.
(3) Services performed.--A personal physician shall perform
or provide for the performance of at least the following
services:
(A) Advocates for and provides ongoing support, oversight,
and guidance to implement a plan of care that provides an
integrated, coherent, cross-discipline plan for ongoing
medical care developed in partnership with patients and
including all other physicians furnishing care to the patient
involved and other appropriate medical personnel or agencies
(such as home health agencies).
(B) Uses evidence-based medicine and clinical decision
support tools to guide decision-making at the point-of-care
based on patient-specific factors.
(C) Uses health information technology, that may include
remote monitoring and patient registries, to monitor and
track the health status of patients and to provide patients
with enhanced and convenient access to health care services.
(D) Encourages patients to engage in the management of
their own health through education and support systems.
(d) Medical Home Defined.--For purposes of this section,
the term ``medical home'' means a physician practice that--
(1) is in charge of targeting beneficiaries for
participation in the project; and
[[Page H9041]]
(2) is responsible for--
(A) providing safe and secure technology to promote patient
access to personal health information;
(B) developing a health assessment tool for the individuals
targeted; and
(C) providing training programs for personnel involved in
the coordination of care.
(e) Payment Mechanisms.--
(1) Personal physician care management fee.--Under the
project, the Secretary shall provide for payment under
section 1848 of the Social Security Act (42 U.S.C. 1395w-4)
of a care management fee to personal physicians providing
care management under the project. Under such section and
using the relative value scale update committee (RUC) process
under such section, the Secretary shall develop a care
management fee code for such payments and a value for such
code.
(2) Medical home sharing in savings.--The Secretary shall
provide for payment under the project of a medical home based
on the payment methodology applied to physician group
practices under section 1866A of the Social Security Act (42
U.S.C. 1395cc-1). Under such methodology, 80 percent of the
reductions in expenditures under title XVIII of the Social
Security Act resulting from participation of individuals that
are attributable to the medical home (as reduced by the total
care managements fees paid to the medical home under the
project) shall be paid to the medical home. The amount of
such reductions in expenditures shall be determined by using
assumptions with respect to reductions in the occurrence of
health complications, hospitalization rates, medical errors,
and adverse drug reactions.
(3) Source.--Payments paid under the project shall be made
from the Federal Supplementary Medical Insurance Trust Fund
under section 1841 of the Social Security Act (42 U.S.C.
1395t).
(f) Evaluations and Reports.--
(1) Annual interim evaluations and reports.--For each year
of the project, the Secretary shall provide for an evaluation
of the project and shall submit to Congress, by a date
specified by the Secretary, a report on the project and on
the evaluation of the project for each such year.
(2) Final evaluation and report.--The Secretary shall
provide for an evaluation of the project and shall submit to
Congress, not later than one year after completion of the
project, a report on the project and on the evaluation of the
project.
SEC. 205. MEDICARE DRA TECHNICAL CORRECTIONS.
(a) PACE Clarification.--Paragraph (7) of section 5302(c)
of the Deficit Reduction Act of 2005 (42 U.S.C. 1395eee note)
is amended to read as follows:
``(7) Appropriation.--
``(A) In general.--Out of funds in the Treasury not
otherwise appropriated, there are appropriated to the
Secretary $10,000,000 to carry out this subsection for the
period of fiscal years 2006 through 2010.
``(B) Availability.--Funds appropriated under subparagraph
(A) shall remain available for obligation through fiscal year
2010.''.
(b) Miscellaneous Technical Corrections.--
(1) Correction of margin (section 5001).--Section
1886(b)(3)(B) of the Social Security Act (42 U.S.C.
1395ww(b)(3)(B)), as amended by section 5001(a) of the
Deficit Reduction Act of 2005 (Public Law 109-171), is
amended by moving clause (viii) (including subclauses (I)
through (VII) of such clause) 6 ems to the left.
(2) Reference correction (section 5114).--Section
5114(a)(2) of the Deficit Reduction Act of 2005 (Public Law
109-171), in the matter preceding subparagraph (A), is
amended by striking ``1842(b)(6)(F) of such Act (42 U.S.C.
1395u(b)(6)(F))'' and inserting ``1842(b)(6) of such Act (42
U.S.C. 1395u(b)(6))''.
(c) Effective Date.--The amendments made by this section
shall take effect as if included in the enactment of the
Deficit Reduction Act of 2005 (Public Law 109-171).
SEC. 206. LIMITED CONTINUOUS OPEN ENROLLMENT OF ORIGINAL
MEDICARE FEE-FOR-SERVICE ENROLLEES INTO
MEDICARE ADVANTAGE NON-PRESCRIPTION DRUG PLANS.
(a) In General.--Section 1851(e)(2) of the Social Security
Act (42 U.S.C. 1395w-21(e)(2)) is amended by adding at the
end the following new subparagraph:
``(E) Limited continuous open enrollment of original fee-
for-service enrollees in medicare advantage non-prescription
drug plans.--
``(i) In general.--On any date during 2007 or 2008 on which
a Medicare Advantage eligible individual is an unenrolled
fee-for-service individual (as defined in clause (ii)), the
individual may elect under subsection (a)(1) to enroll in a
Medicare Advantage plan that is not an MA-PD plan.
``(ii) Unenrolled fee-for-service individual defined.--In
this subparagraph, the term `unenrolled fee-for-service
individual' means, with respect to a date, a Medicare
Advantage eligible individual who--
``(I) is receiving benefits under this title through
enrollment in the original medicare fee-for-service program
under parts A and B;
``(II) is not enrolled in an MA plan on such date; and
``(III) as of such date is not otherwise eligible to elect
to enroll in an MA plan.
``(iii) Limitation of one change during year.--An
individual may exercise the right under clause (i) only once
during the year.
``(iv) No effect on coverage under a prescription drug
plan.--Nothing in this subparagraph shall be construed as
permitting an individual exercising the right under clause
(i)--
``(I) who is enrolled in a prescription drug plan under
part D, to disenroll from such plan or to enroll in a
different prescription drug plan; or
``(II) who is not enrolled in a prescription drug plan, to
enroll in such a plan.''.
(b) Conforming Amendment.--Section 1860D-1(b)(1)(B)(iii) of
the Social Security Act (42 U.S.C. 1395w-101(b)(1)(B)(iii))
is amended by striking ``subparagraphs (B) and (C)'' and
inserting ``subparagraphs (B), (C), and (E)''.
TITLE III--MEDICARE PROGRAM INTEGRITY EFFORTS
SEC. 301. OFFSETTING ADJUSTMENT IN MEDICARE ADVANTAGE
STABILIZATION FUND.
Section 1858(e)(2)(A)(i) of the Social Security Act (42
U.S.C. 1395w-27a(e)(2)(A)(i)) is amended by striking
``2007,'' and ``$10,000,000,000'' and inserting ``2012,'' and
``$3,500,000,000'', respectively.
SEC. 302. EXTENSION AND EXPANSION OF RECOVERY AUDIT
CONTRACTOR PROGRAM UNDER THE MEDICARE INTEGRITY
PROGRAM.
(a) In General.--Section 1893 of the Social Security Act
(42 U.S.C. 1395ddd) is amended by adding at the end the
following new subsection:
``(h) Use of Recovery Audit Contractors.--
``(1) In general.--Under the Program, the Secretary shall
enter into contracts with recovery audit contractors in
accordance with this subsection for the purpose of
identifying underpayments and overpayments and recouping
overpayments under this title with respect to all services
for which payment is made under part A or B. Under the
contracts--
``(A) payment shall be made to such a contractor only from
amounts recovered;
``(B) from such amounts recovered, payment--
``(i) shall be made on a contingent basis for collecting
overpayments; and
``(ii) may be made in such amounts as the Secretary may
specify for identifying underpayments; and
``(C) the Secretary shall retain a portion of the amounts
recovered which shall be available to the program management
account of the Centers for Medicare & Medicaid Services for
purposes of activities conducted under the recovery audit
program under this subsection.
``(2) Disposition of remaining recoveries.--The amounts
recovered under such contracts that are not paid to the
contractor under paragraph (1) or retained by the Secretary
under paragraph (1)(C) shall be applied to reduce
expenditures under parts A and B.
``(3) Nationwide coverage.--The Secretary shall enter into
contracts under paragraph (1) in a manner so as to provide
for activities in all States under such a contract by not
later than January 1, 2010.
``(4) Audit and recovery periods.--Each such contract shall
provide that audit and recovery activities may be conducted
during a fiscal year with respect to payments made under part
A or B--
``(A) during such fiscal year; and
``(B) retrospectively (for a period of not more than 4
fiscal years prior to such fiscal year).
``(5) Waiver.--The Secretary shall waive such provisions of
this title as may be necessary to provide for payment of
recovery audit contractors under this subsection in
accordance with paragraph (1).
``(6) Qualifications of contractors.--
``(A) In general.--The Secretary may not enter into a
contract under paragraph (1) with a recovery audit contractor
unless the contractor has staff that has the appropriate
clinical knowledge of, and experience with, the payment rules
and regulations under this title or the contractor has, or
will contract with, another entity that has such
knowledgeable and experienced staff.
``(B) Ineligibility of certain contractors.--The Secretary
may not enter into a contract under paragraph (1) with a
recovery audit contractor to the extent the contractor is a
fiscal intermediary under section 1816, a carrier under
section 1842, or a medicare administrative contractor under
section 1874A.
``(C) Preference for entities with demonstrated
proficiency.--In awarding contracts to recovery audit
contractors under paragraph (1), the Secretary shall give
preference to those risk entities that the Secretary
determines have demonstrated more than 3 years direct
management experience and a proficiency for cost control or
recovery audits with private insurers, health care providers,
health plans, under the Medicaid program under title XIX, or
under this title.
``(7) Construction relating to conduct of investigation of
fraud.--A recovery of an overpayment to a individual or
entity by a recovery audit contractor under this subsection
shall not be construed to prohibit the Secretary or the
Attorney General from investigating and prosecuting, if
appropriate, allegations of fraud or abuse arising from such
overpayment.
``(8) Annual report.--The Secretary shall annually submit
to Congress a report on the use of recovery audit contractors
under this subsection. Each such report shall include
information on the performance of such contractors in
identifying underpayments and overpayments and recouping
overpayments, including an evaluation of the comparative
[[Page H9042]]
performance of such contractors and savings to the program
under this title.''.
(b) Access to Coordination of Benefits Contractor
Database.--The Secretary of Health and Human Services shall
provide for access by recovery audit contractors conducting
audit and recovery activities under section 1893(h) of the
Social Security Act, as added by subsection (a), to the
database of the Coordination of Benefits Contractor of the
Centers for Medicare & Medicaid Services with respect to the
audit and recovery periods described in paragraph (4) of such
section 1893(h).
(c) Conforming Amendments to Current Demonstration
Project.--Section 306 of the Medicare Prescription Drug,
Improvement, and Modernization Act of 2003 (Public Law 108-
173; 117 Stat. 2256) is amended--
(1) in subsection (b)(2), by striking ``last for not longer
than 3 years'' and inserting ``continue until contracts are
entered into under section 1893(h) of the Social Security
Act''; and
(2) by striking subsection (f).
SEC. 303. FUNDING FOR THE HEALTH CARE FRAUD AND ABUSE CONTROL
ACCOUNT.
(a) Departments of Health and Human Services and Justice.--
(1) In general.--Section 1817(k)(3)(A)(i) of the Social
Security Act (42 U.S.C. 1395i(k)(3)(A)(i)) is amended--
(A) in the matter preceding subclause (I), by inserting
``until expended'' after ``without further appropriation'';
(B) in subclause (II), by striking ``and'' at the end;
(C) in subclause (III)--
(i) by striking ``for each fiscal year after fiscal year
2003'' and inserting ``for each of fiscal years 2004, 2005,
and 2006''; and
(ii) by striking the period at the end and inserting a
semicolon; and
(D) by adding at the end the following new subclauses:
``(IV) for each of fiscal years 2007, 2008, 2009, and 2010,
the limit under this clause for the preceding fiscal year,
increased by the percentage increase in the consumer price
index for all urban consumers (all items; United States city
average) over the previous year; and
``(V) for each fiscal year after fiscal year 2010, the
limit under this clause for fiscal year 2010.''.
(2) Office of the inspector general of the department of
health and human services.--Section 1817(k)(3)(A)(ii) of such
Act (42 U.S.C. 1395i(k)(3)(A)(ii)) is amended--
(A) in subclause (VI), by striking ``and'' at the end;
(B) in subclause (VII)--
(i) by striking ``for each fiscal year after fiscal year
2002'' and inserting ``for each of fiscal years 2003, 2004,
2005, and 2006''; and
(ii) by striking the period at the end and inserting a
semicolon; and
(C) by adding at the end the following new subclauses:
``(VIII) for fiscal year 2007, not less than $160,000,000,
increased by the percentage increase in the consumer price
index for all urban consumers (all items; United States city
average) over the previous year;
``(IX) for each of fiscal years 2008, 2009, and 2010, not
less than the amount required under this clause for the
preceding fiscal year, increased by the percentage increase
in the consumer price index for all urban consumers (all
items; United States city average) over the previous year;
and
``(X) for each fiscal year after fiscal year 2010, not less
than the amount required under this clause for fiscal year
2010.''.
(b) Federal Bureau of Investigation.--Section 1817(k)(3)(B)
of the Social Security Act (42 U.S.C. 1395i(k)(3)(B)) is
amended--
(1) in the matter preceding clause (i), by inserting
``until expended'' after ``without further appropriation'';
(2) in clause (vi), by striking ``and'' at the end;
(3) in clause (vii)--
(A) by striking ``for each fiscal year after fiscal year
2002'' and inserting ``for each of fiscal years 2003, 2004,
2005, and 2006''; and
(B) by striking the period at the end and inserting a
semicolon; and
(4) by adding at the end the following new clauses:
``(viii) for each of fiscal years 2007, 2008, 2009, and
2010, the amount to be appropriated under this subparagraph
for the preceding fiscal year, increased by the percentage
increase in the consumer price index for all urban consumers
(all items; United States city average) over the previous
year; and
``(ix) for each fiscal year after fiscal year 2010, the
amount to be appropriated under this subparagraph for fiscal
year 2010.''.
SEC. 304. IMPLEMENTATION FUNDING.
For purposes of implementing the provisions of, and
amendments made by, this title and titles I and II of this
division, other than section 203, the Secretary of Health and
Human Services shall provide for the transfer, in appropriate
part from the Federal Hospital Insurance Trust Fund
established under section 1817 of the Social Security Act (42
U.S.C. 1395i) and the Federal Supplementary Medical Insurance
Trust Fund established under section 1841 of such Act (42
U.S.C. 1395t), of $45,000,000 to the Centers for Medicare &
Medicaid Services Program Management Account for the period
of fiscal years 2007 and 2008.
TITLE IV--MEDICAID AND OTHER HEALTH PROVISIONS
SEC. 401. EXTENSION OF TRANSITIONAL MEDICAL ASSISTANCE (TMA)
AND ABSTINENCE EDUCATION PROGRAM.
Activities authorized by sections 510 and 1925 of the
Social Security Act shall continue through June 30, 2007, in
the manner authorized for fiscal year 2006, notwithstanding
section 1902(e)(1)(A) of such Act, and out of any money in
the Treasury of the United States not otherwise appropriated,
there are hereby appropriated such sums as may be necessary
for such purpose. Grants and payments may be made pursuant to
this authority through the third quarter of fiscal year 2007
at the level provided for such activities through the third
quarter of fiscal year 2006.
SEC. 402. GRANTS FOR RESEARCH ON VACCINE AGAINST VALLEY
FEVER.
(a) In General.--In supporting research on the development
of vaccines against human diseases, the Secretary of Health
and Human Services shall make grants for the purpose of
conducting research toward the development of a vaccine
against coccidioidomycosis (commonly known as Valley Fever).
(b) Sunset.--No grant may be made under subsection (a) on
or after October 1, 2012. The preceding sentence does not
have any legal effect on payments under grants for which
amounts appropriated under subsection (c) were obligated
prior to such date.
(c) Authorization of Appropriations.--For the purpose of
making grants under subsection (a), there are authorized to
be appropriated $40,000,000 for the period of fiscal years
2007 through 2012.
SEC. 403. CHANGE IN THRESHOLD FOR MEDICAID INDIRECT HOLD
HARMLESS PROVISION OF BROAD-BASED HEALTH CARE
TAXES.
Section 1903(w)(4)(C) of the Social Security Act (42 U.S.C.
1396b(w)(4)(C)) is amended--
(1) by inserting ``(i)'' after ``(C)''; and
(2) by adding at the end the following:
``(ii) For purposes of clause (i), a determination of the
existence of an indirect guarantee shall be made under
paragraph (3)(i) of section 433.68(f) of title 42, Code of
Federal Regulations, as in effect on November 1, 2006, except
that for portions of fiscal years beginning on or after
January 1, 2008, and before October 1, 2011, `5.5 percent'
shall be substituted for `6 percent' each place it
appears.''.
SEC. 404. DSH ALLOTMENTS FOR FISCAL YEAR 2007 FOR TENNESSEE
AND HAWAII.
Section 1923(f)(6) of the Social Security Act (42 U.S.C.
1396r-4(f)(6)) is amended to read as follows:
``(6) Allotment adjustments for fiscal year 2007.--
``(A) Tennessee.--
``(i) In general.--Only with respect to fiscal year 2007,
the DSH allotment for Tennessee for such fiscal year,
notwithstanding the table set forth in paragraph (2) or the
terms of the TennCare Demonstration Project in effect for the
State, shall be the greater of--
``(I) the amount that the Secretary determines is equal to
the Federal medical assistance percentage component
attributable to disproportionate share hospital payment
adjustments for the demonstration year ending in 2006 that is
reflected in the budget neutrality provision of the TennCare
Demonstration Project; and
``(II) $280,000,000.
``(ii) Limitation on amount of payment adjustments eligible
for federal financial participation.--Payment under section
1903(a) shall not be made to Tennessee with respect to the
aggregate amount of any payment adjustments made under this
section for hospitals in the State for fiscal year 2007 that
is in excess of 30 percent of the DSH allotment for the State
for such fiscal year determined pursuant to clause (i).
``(iii) State plan amendment.--The Secretary shall permit
Tennessee to submit an amendment to its State plan under this
title that describes the methodology to be used by the State
to identify and make payments to disproportionate share
hospitals, including children's hospitals and institutions
for mental diseases or other mental health facilities. The
Secretary may not approve such plan amendment unless the
methodology described in the amendment is consistent with the
requirements under this section for making payment
adjustments to disproportionate share hospitals. For purposes
of demonstrating budget neutrality under the TennCare
Demonstration Project, payment adjustments made pursuant to a
State plan amendment approved in accordance with this
subparagraph shall be considered expenditures under such
project.
``(iv) Offset of federal share of payment adjustments for
fiscal year 2007 against essential access hospital
supplemental pool payments under the tenncare demonstration
project.--
``(I) The total amount of Essential Access Hospital
supplemental pool payments that may be made under the
TennCare Demonstration Project for fiscal year 2007 shall be
reduced on a dollar for dollar basis by the amount of any
payments made under section 1903(a) to Tennessee with respect
to payment adjustments made under this section for hospitals
in the State for such fiscal year.
``(II) The sum of the total amount of payments made under
section 1903(a) to Tennessee with respect to payment
adjustments made under this section for hospitals in the
State for fiscal year 2007 and the total amount of Essential
Access Hospital supplemental pool payments made under the
TennCare Demonstration Project for such fiscal year shall not
exceed the State's DSH allotment for such fiscal year
established under clause (i).
``(B) Hawaii.--
[[Page H9043]]
``(i) In general.--Only with respect to fiscal year 2007,
the DSH allotment for Hawaii for such fiscal year,
notwithstanding the table set forth in paragraph (2), shall
be $10,000,000.
``(ii) State plan amendment.--The Secretary shall permit
Hawaii to submit an amendment to its State plan under this
title that describes the methodology to be used by the State
to identify and make payments to disproportionate share
hospitals, including children's hospitals and institutions
for mental diseases or other mental health facilities. The
Secretary may not approve such plan amendment unless the
methodology described in the amendment is consistent with the
requirements under this section for making payment
adjustments to disproportionate share hospitals.''.
SEC. 405. CERTAIN MEDICAID DRA TECHNICAL CORRECTIONS.
(a) Technical Corrections Relating to State Option for
Alternative Premiums and Cost Sharing (Sections 6041 Through
6043).--
(1) Clarification of continued application of regular cost
sharing rules for individuals with family income not
exceeding 100 percent of the poverty line.--Section 1916A of
the Social Security Act, as inserted by section 6041(a) of
the Deficit Reduction Act of 2005 and amended by sections
6042 and 6043 of such Act, is amended--
(A) in subsection (a)(1)--
(i) by inserting ``but subject to paragraph (2),'' after
``1902(a)(10)(B),''; and
(ii) by inserting ``and non-emergency services furnished in
a hospital emergency department for which cost sharing may be
imposed under subsection (e)'' after ``(c)'';
(B) by redesignating paragraph (2) of subsection (a) as
paragraph (3);
(C) in subsection (a), by inserting after paragraph (1) the
following:
``(2) Exemption for individuals with family income not
exceeding 100 percent of the poverty line.--
``(A) In general.--Paragraph (1) and subsection (d) shall
not apply, and sections 1916 and 1902(a)(10)(B) shall
continue to apply, in the case of an individual whose family
income does not exceed 100 percent of the poverty line
applicable to a family of the size involved.
``(B) Limit on aggregate cost sharing.--To the extent cost
sharing under subsection (c) and (e) or under section 1916 is
imposed against individuals described in subparagraph (A),
the limitation under subsection (b)(1)(B)(ii) on the total
aggregate amount of cost sharing shall apply to such cost
sharing for all individuals in a family described in
subparagraph (A) in the same manner as such limitations apply
to cost sharing and families described in subsection
(b)(1)(B)(ii).'';
(D) in subsections (c)(2)(C) and (e)(2)(C), by inserting
``under subsection (a)(2)(B) or'' after ``cap on cost sharing
applied''; and
(E) in subsection (e)(2)(A), by inserting ``who is not
described in subparagraph (B)'' after ``subsection (b)(1)''.
(2) Clarification of treatment of non-preferred drug and
non-emergency cost-sharing.--Such section is further
amended--
(A) in subsections (b)(1) and (b)(2), by striking ``,
subject to subsections (c)(2) and (e)(2)(A)'';
(B) in subsection (c)(1), in the matter preceding
subparagraph (A), by striking ``least (or less) costly
effective'' and inserting ``most (or more) cost effective'';
(C) in subsection (c)(1)(B), by striking ``otherwise be
imposed under'' and inserting ``be imposed under subsection
(a) due to the application of'';
(D) in subsection (c)(2)(B), by striking ``otherwise not
subject to cost sharing due to the application of subsection
(b)(3)(B)'' and inserting ``not subject to cost sharing under
subsection (a) due to the application of paragraph (1)(B)'';
(E) in subsection (e)(2)(A)--
(i) by amending the heading to read as follows:
``Individuals with family income between 100 and 150 percent
of the poverty line.--''; and
(ii) by striking ``under subsection (b)(1)'' and inserting
``under subsection (b)(1)(B)(ii)'';
(F) in subsection (e)(2)(B), by striking ``who is otherwise
not subject to cost sharing under subsection (b)(3)'' and
inserting ``described in subsection (a)(2)(A) or who is not
subject to cost sharing under subsection (b)(3)(B) with
respect to non-emergency services described in paragraph
(1)'' and
(G) in subsection (e)(2)(C), by inserting ``or section
1916'' after ``subsection (a)''.
(3) Clarification of cost sharing rules applicable to
disabled children provided medical assistance under the
eligibility category added by the family opportunity act.--
Such section is further amended--
(A) in subsection (a)(1), in the second sentence, by
striking ``section 1916(g)'' and inserting ``subsection (g)
or (i) of section 1916''; and
(B) in subsection (b)(3)--
(i) in subparagraph (A), by adding at the end the
following:
``(vi) Disabled children who are receiving medical
assistance by virtue of the application of sections
1902(a)(10)(A)(ii)(XIX) and 1902(cc).''; and
(ii) in subparagraph (B), by adding at the end the
following:
``(ix) Services furnished to disabled children who are
receiving medical assistance by virtue of the application of
sections 1902(a)(10)(A)(ii)(XIX) and 1902(cc).''.
(4) Correction of iv-b references.--Such section is further
amended in subsection (b)(3)--
(A) in subparagraph (A)(i), by striking ``aid or assistance
is made available under part B of title IV to children in
foster care'' and inserting ``child welfare services are made
available under part B of title IV on the basis of being a
child in foster care''; and
(B) in subparagraph (B)(i), by striking ``aid or assistance
is made available under part B of title IV to children in
foster care'' and inserting ``child welfare services are made
available under part B of title IV on the basis of being a
child in foster care or''.
(5) Non-emergency services.--Section 1916A(e)(4)(A) of the
Social Security Act, as added by section 6043(a) of the
Deficit Reduction Act of 2005, is amended by striking ``the
physician determines''.
(6) Effective date.--The amendments made by this subsection
shall take effect as if included in the amendments made by
sections 6041(a) of the Deficit Reduction Act of 2005, except
that insofar as such amendments are to, or relate to,
subsection (c) or (e) of section 1916A of the Social Security
Act, such amendments shall take effect as if included in the
amendments made by section 6042 or 6043, respectively, of the
Deficit Reduction Act of 2005.
(b) Clarifying Treatment of Certain Annuities (Section
6012).--
(1) In general.--Section 1917(c)(1)(F)(i) of the Social
Security Act (42 U.S.C. 1396p(c)(1)(F)(i)), as added by
section 6012(b) of the Deficit Reduction Act of 2005, is
amended by striking ``annuitant'' and inserting
``institutionalized individual''.
(2) Effective date.--The amendment made by paragraph (1)
shall be effective as if included in the enactment of section
6012 of the Deficit Reduction Act of 2005.
(c) Additional Miscellaneous Technical Corrections.--
(1) Documentation (section 6036).--
(A) In general.--Effective as if included in the amendment
made by section 6036(a)(2) of the Deficit Reduction Act of
2005, section 1903(x) of the Social Security Act (42 U.S.C.
1396b(x)), as inserted by such section 6036(a)(2), is
amended--
(i) in paragraph (1), by striking ``(i)(23)'' and inserting
``(i)(22)'';
(ii) in paragraph (2)--
(I) in the matter preceding subparagraph (A), by striking
``alien'' and inserting ``individual declaring to be a
citizen or national of the United States'';
(II) by striking subparagraph (B) and inserting the
following:
``(B) and is receiving--
``(i) disability insurance benefits under section 223 or
monthly insurance benefits under section 202 based on such
individual's disability (as defined in section 223(d)); or
``(ii) supplemental security income benefits under title
XVI;'';
(III) in subparagraph (C)--
(aa) by striking ``other''; and
(bb) by striking ``had'' and inserting ``has'';
(IV) by redesignating subparagraph (C) as subparagraph (D);
and
(V) by inserting after subparagraph (B) the following new
subparagraph:
``(C) and with respect to whom--
``(i) child welfare services are made available under part
B of title IV on the basis of being a child in foster care;
or
``(ii) adoption or foster care assistance is made available
under part E of title IV; or''; and
(iii) in paragraph (3)(C)(iii), by striking ``I-97'' and
inserting ``I-197''.
(B) Assurance of state foster care agency verification of
citizenship or legal status.--
(i) State plan amendment.--Section 471(a) of the Social
Security Act (42 U.S.C. 671(a)) is amended--
(I) in paragraph (25), by striking ``and'' at the end;
(II) in paragraph (26)(C), by striking the period at the
end and inserting ``; and''; and
(III) by adding at the end the following:
``(27) provides that, with respect to any child in foster
care under the responsibility of the State under this part or
part B and without regard to whether foster care maintenance
payments are made under section 472 on behalf of the child,
the State has in effect procedures for verifying the
citizenship or immigration status of the child.''.
(ii) Inclusion in reviews of child and family services
programs.--Section 1123A(b)(2) of the Social Security Act (42
U.S.C. 1320a-2a(b)(2)) is amended by inserting ``(which shall
include determining whether the State program is in
conformity with the requirement of section 471(a)(27))''
after ``review''.
(iii) Effective date.--The amendments made by this
subparagraph shall take effect on the date that is 6 months
after the date of the enactment of this Act.
(2) Miscellaneous technical corrections.--
(A) Effective as if included in the enactment of the
Deficit Reduction Act of 2005 (Public Law 109-171), the
following sections of such Act are amended as follows:
(i) Section 5114(a)(2) is amended by striking ``section
1842(b)(6)(F) of such Act (42 U.S.C. 1395u(b)(6)(F))'' and
inserting ``section 1842(b)(6) of such Act (42 U.S.C.
1395u(b)(6))''.
(ii) Section 6003(b)(2) is amended, by striking
``subsection (k)'' and inserting ``subsection (k)(1)''.
(iii) Sections 6031(b), 6032(b), and 6035(c) are each
amended by striking ``section 6035(e)'' and inserting
``section 6034(e)''.
[[Page H9044]]
(iv) Section 6034(b) is amended by striking ``section
6033(a)'' and inserting ``section 6032(a)''.
(v) Section 6036 is amended--
(I) in subsection (b), by striking ``section 1903(z)'' and
inserting ``section 1903(x)''; and
(II) in subsection (c), by striking ``(i)(23)'' and
inserting ``(i)(22)''.
(B) Effective as if included in the amendment made by
section 6015(a)(1) of the Deficit Reduction Act of 2005,
section 1919(c)(5)(A)(i)(II) of the Social Security Act (42
U.S.C. 1396r(c)(5)(A)(i)(II)) is amended by striking ``clause
(v)'' and inserting ``subparagraph (B)(v)''.
DIVISION C--OTHER PROVISIONS
TITLE I--GULF OF MEXICO ENERGY SECURITY
SEC. 101. SHORT TITLE.
This title may be cited as the ``Gulf of Mexico Energy
Security Act of 2006''.
SEC. 102. DEFINITIONS.
In this title:
(1) 181 area.--The term ``181 Area'' means the area
identified in map 15, page 58, of the Proposed Final Outer
Continental Shelf Oil and Gas Leasing Program for 1997-2002,
dated August 1996, of the Minerals Management Service,
available in the Office of the Director of the Minerals
Management Service, excluding the area offered in OCS Lease
Sale 181, held on December 5, 2001.
(2) 181 south area.--The term ``181 South Area'' means any
area--
(A) located--
(i) south of the 181 Area;
(ii) west of the Military Mission Line; and
(iii) in the Central Planning Area;
(B) excluded from the Proposed Final Outer Continental
Shelf Oil and Gas Leasing Program for 1997-2002, dated August
1996, of the Minerals Management Service; and
(C) included in the areas considered for oil and gas
leasing, as identified in map 8, page 37 of the document
entitled ``Draft Proposed Program Outer Continental Shelf Oil
and Gas Leasing Program 2007-2012'', dated February 2006.
(3) Bonus or royalty credit.--The term ``bonus or royalty
credit'' means a legal instrument or other written
documentation, or an entry in an account managed by the
Secretary, that may be used in lieu of any other monetary
payment for--
(A) a bonus bid for a lease on the outer Continental Shelf;
or
(B) a royalty due on oil or gas production from any lease
located on the outer Continental Shelf.
(4) Central planning area.--The term ``Central Planning
Area'' means the Central Gulf of Mexico Planning Area of the
outer Continental Shelf, as designated in the document
entitled ``Draft Proposed Program Outer Continental Shelf Oil
and Gas Leasing Program 2007-2012'', dated February 2006.
(5) Eastern planning area.--The term ``Eastern Planning
Area'' means the Eastern Gulf of Mexico Planning Area of the
outer Continental Shelf, as designated in the document
entitled ``Draft Proposed Program Outer Continental Shelf Oil
and Gas Leasing Program 2007-2012'', dated February 2006.
(6) 2002-2007 planning area.--The term ``2002-2007 planning
area'' means any area--
(A) located in--
(i) the Eastern Planning Area, as designated in the
Proposed Final Outer Continental Shelf Oil and Gas Leasing
Program 2002-2007, dated April 2002, of the Minerals
Management Service;
(ii) the Central Planning Area, as designated in the
Proposed Final Outer Continental Shelf Oil and Gas Leasing
Program 2002-2007, dated April 2002, of the Minerals
Management Service; or
(iii) the Western Planning Area, as designated in the
Proposed Final Outer Continental Shelf Oil and Gas Leasing
Program 2002-2007, dated April 2002, of the Minerals
Management Service; and
(B) not located in--
(i) an area in which no funds may be expended to conduct
offshore preleasing, leasing, and related activities under
sections 104 through 106 of the Department of the Interior,
Environment, and Related Agencies Appropriations Act, 2006
(Public Law 109-54; 119 Stat. 521) (as in effect on August 2,
2005);
(ii) an area withdrawn from leasing under the ``Memorandum
on Withdrawal of Certain Areas of the United States Outer
Continental Shelf from Leasing Disposition'', from 34 Weekly
Comp. Pres. Doc. 1111, dated June 12, 1998; or
(iii) the 181 Area or 181 South Area.
(7) Gulf producing state.--The term ``Gulf producing
State'' means each of the States of Alabama, Louisiana,
Mississippi, and Texas.
(8) Military mission line.--The term ``Military Mission
Line'' means the north-south line at 8641' W. longitude.
(9) Qualified outer continental shelf revenues.--
(A) In general.--The term ``qualified outer Continental
Shelf revenues'' means--
(i) in the case of each of fiscal years 2007 through 2016,
all rentals, royalties, bonus bids, and other sums due and
payable to the United States from leases entered into on or
after the date of enactment of this Act for--
(I) areas in the 181 Area located in the Eastern Planning
Area; and
(II) the 181 South Area; and
(ii) in the case of fiscal year 2017 and each fiscal year
thereafter, all rentals, royalties, bonus bids, and other
sums due and payable to the United States received on or
after October 1, 2016, from leases entered into on or after
the date of enactment of this Act for--
(I) the 181 Area;
(II) the 181 South Area; and
(III) the 2002-2007 planning area.
(B) Exclusions.--The term ``qualified outer Continental
Shelf revenues'' does not include--
(i) revenues from the forfeiture of a bond or other surety
securing obligations other than royalties, civil penalties,
or royalties taken by the Secretary in-kind and not sold; or
(ii) revenues generated from leases subject to section 8(g)
of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(g)).
(10) Coastal political subdivision.--The term ``coastal
political subdivision'' means a political subdivision of a
Gulf producing State any part of which political subdivision
is--
(A) within the coastal zone (as defined in section 304 of
the Coastal Zone Management Act of 1972 (16 U.S.C. 1453)) of
the Gulf producing State as of the date of enactment of this
Act; and
(B) not more than 200 nautical miles from the geographic
center of any leased tract.
(11) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
SEC. 103. OFFSHORE OIL AND GAS LEASING IN 181 AREA AND 181
SOUTH AREA OF GULF OF MEXICO.
(a) 181 Area Lease Sale.--Except as provided in section
104, the Secretary shall offer the 181 Area for oil and gas
leasing pursuant to the Outer Continental Shelf Lands Act (43
U.S.C. 1331 et seq.) as soon as practicable, but not later
than 1 year, after the date of enactment of this Act.
(b) 181 South Area Lease Sale.--The Secretary shall offer
the 181 South Area for oil and gas leasing pursuant to the
Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) as
soon as practicable after the date of enactment of this Act.
(c) Leasing Program.--The 181 Area and 181 South Area shall
be offered for lease under this section notwithstanding the
omission of the 181 Area or the 181 South Area from any outer
Continental Shelf leasing program under section 18 of the
Outer Continental Shelf Lands Act (43 U.S.C. 1344).
(d) Conforming Amendment.--Section 105 of the Department of
the Interior, Environment, and Related Agencies
Appropriations Act, 2006 (Public Law 109-54; 119 Stat. 522)
is amended by inserting ``(other than the 181 South Area (as
defined in section 102 of the Gulf of Mexico Energy Security
Act of 2006))'' after ``lands located outside Sale 181''.
SEC. 104. MORATORIUM ON OIL AND GAS LEASING IN CERTAIN AREAS
OF GULF OF MEXICO.
(a) In General.--Effective during the period beginning on
the date of enactment of this Act and ending on June 30,
2022, the Secretary shall not offer for leasing, preleasing,
or any related activity--
(1) any area east of the Military Mission Line in the Gulf
of Mexico;
(2) any area in the Eastern Planning Area that is within
125 miles of the coastline of the State of Florida; or
(3) any area in the Central Planning Area that is--
(A) within--
(i) the 181 Area; and
(ii) 100 miles of the coastline of the State of Florida; or
(B)(i) outside the 181 Area;
(ii) east of the western edge of the Pensacola Official
Protraction Diagram (UTM X coordinate 1,393,920 (NAD 27
feet)); and
(iii) within 100 miles of the coastline of the State of
Florida.
(b) Military Mission Line.--Notwithstanding subsection (a),
the United States reserves the right to designate by and
through the Secretary of Defense, with the approval of the
President, national defense areas on the outer Continental
Shelf pursuant to section 12(d) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1341(d)).
(c) Exchange of Certain Leases.--
(1) In general.--The Secretary shall permit any person
that, as of the date of enactment of this Act, has entered
into an oil or gas lease with the Secretary in any area
described in paragraph (2) or (3) of subsection (a) to
exchange the lease for a bonus or royalty credit that may
only be used in the Gulf of Mexico.
(2) Valuation of existing lease.--The amount of the bonus
or royalty credit for a lease to be exchanged shall be equal
to--
(A) the amount of the bonus bid; and
(B) any rental paid for the lease as of the date the lessee
notifies the Secretary of the decision to exchange the lease.
(3) Revenue distribution.--No bonus or royalty credit may
be used under this subsection in lieu of any payment due
under, or to acquire any interest in, a lease subject to the
revenue distribution provisions of section 8(g) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1337(g)).
(4) Regulations.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall promulgate
regulations that shall provide a process for--
(A) notification to the Secretary of a decision to exchange
an eligible lease;
(B) issuance of bonus or royalty credits in exchange for
relinquishment of the existing lease;
(C) transfer of the bonus or royalty credit to any other
person; and
(D) determining the proper allocation of bonus or royalty
credits to each lease interest owner.
[[Page H9045]]
SEC. 105. DISPOSITION OF QUALIFIED OUTER CONTINENTAL SHELF
REVENUES FROM 181 AREA, 181 SOUTH AREA, AND
2002-2007 PLANNING AREAS OF GULF OF MEXICO.
(a) In General.--Notwithstanding section 9 of the Outer
Continental Shelf Lands Act (43 U.S.C. 1338) and subject to
the other provisions of this section, for each applicable
fiscal year, the Secretary of the Treasury shall deposit--
(1) 50 percent of qualified outer Continental Shelf
revenues in the general fund of the Treasury; and
(2) 50 percent of qualified outer Continental Shelf
revenues in a special account in the Treasury from which the
Secretary shall disburse--
(A) 75 percent to Gulf producing States in accordance with
subsection (b); and
(B) 25 percent to provide financial assistance to States in
accordance with section 6 of the Land and Water Conservation
Fund Act of 1965 (16 U.S.C. 460l-8), which shall be
considered income to the Land and Water Conservation Fund for
purposes of section 2 of that Act (16 U.S.C. 460l-5).
(b) Allocation Among Gulf Producing States and Coastal
Political Subdivisions.--
(1) Allocation among gulf producing states for fiscal years
2007 through 2016.--
(A) In general.--Subject to subparagraph (B), effective for
each of fiscal years 2007 through 2016, the amount made
available under subsection (a)(2)(A) shall be allocated to
each Gulf producing State in amounts (based on a formula
established by the Secretary by regulation) that are
inversely proportional to the respective distances between
the point on the coastline of each Gulf producing State that
is closest to the geographic center of the applicable leased
tract and the geographic center of the leased tract.
(B) Minimum allocation.--The amount allocated to a Gulf
producing State each fiscal year under subparagraph (A) shall
be at least 10 percent of the amounts available under
subsection (a)(2)(A).
(2) Allocation among gulf producing states for fiscal year
2017 and thereafter.--
(A) In general.--Subject to subparagraphs (B) and (C),
effective for fiscal year 2017 and each fiscal year
thereafter--
(i) the amount made available under subsection (a)(2)(A)
from any lease entered into within the 181 Area or the 181
South Area shall be allocated to each Gulf producing State in
amounts (based on a formula established by the Secretary by
regulation) that are inversely proportional to the respective
distances between the point on the coastline of each Gulf pro
Producing State that is closest to the geographic center of
the applicable leased tract and the geographic center of the
leased tract; and
(ii) the amount made available under subsection (a)(2)(A)
from any lease entered into within the 2002-2007 planning
area shall be allocated to each Gulf producing State in
amounts that are inversely proportional to the respective
distances between the point on the coastline of each Gulf
producing State that is closest to the geographic center of
each historical lease site and the geographic center of the
historical lease site, as determined by the Secretary.
(B) Minimum allocation.--The amount allocated to a Gulf
producing State each fiscal year under subparagraph (A) shall
be at least 10 percent of the amounts available under
subsection (a)(2)(A).
(C) Historical lease sites.--
(i) In general.--Subject to clause (ii), for purposes of
subparagraph (A)(ii), the historical lease sites in the 2002-
2007 planning area shall include all leases entered into by
the Secretary for an area in the Gulf of Mexico during the
period beginning on October 1, 1982 (or an earlier date if
practicable, as determined by the Secretary), and ending on
December 31, 2015.
(ii) Adjustment.--Effective January 1, 2022, and every 5
years thereafter, the ending date described in clause (i)
shall be extended for an additional 5 calendar years.
(3) Payments to coastal political subdivisions.--
(A) In general.--The Secretary shall pay 20 percent of the
allocable share of each Gulf producing State, as determined
under paragraphs (1) and (2), to the coastal political
subdivisions of the Gulf producing State.
(B) Allocation.--The amount paid by the Secretary to
coastal political subdivisions shall be allocated to each
coastal political subdivision in accordance with
subparagraphs (B), (C), and (E) of section 31(b)(4) of the
Outer Continental Shelf Lands Act (43 U.S.C. 1356a(b)(4)).
(c) Timing.--The amounts required to be deposited under
paragraph (2) of subsection (a) for the applicable fiscal
year shall be made available in accordance with that
paragraph during the fiscal year immediately following the
applicable fiscal year.
(d) Authorized Uses.--
(1) In general.--Subject to paragraph (2), each Gulf
producing State and coastal political subdivision shall use
all amounts received under subsection (b) in accordance with
all applicable Federal and State laws, only for 1 or more of
the following purposes:
(A) Projects and activities for the purposes of coastal
protection, including conservation, coastal restoration,
hurricane protection, and infrastructure directly affected by
coastal wetland losses.
(B) Mitigation of damage to fish, wildlife, or natural
resources.
(C) Implementation of a federally-approved marine, coastal,
or comprehensive conservation management plan.
(D) Mitigation of the impact of outer Continental Shelf
activities through the funding of onshore infrastructure
projects.
(E) Planning assistance and the administrative costs of
complying with this section.
(2) Limitation.--Not more than 3 percent of amounts
received by a Gulf producing State or coastal political
subdivision under subsection (b) may be used for the purposes
described in paragraph (1)(E).
(e) Administration.--Amounts made available under
subsection (a)(2) shall--
(1) be made available, without further appropriation, in
accordance with this section;
(2) remain available until expended; and
(3) be in addition to any amounts appropriated under--
(A) the Outer Continental Shelf Lands Act (43 U.S.C. 1331
et seq.);
(B) the Land and Water Conservation Fund Act of 1965 (16
U.S.C. 460l-4 et seq.); or
(C) any other provision of law.
(f) Limitations on Amount of Distributed Qualified Outer
Continental Shelf Revenues.--
(1) In general.--Subject to paragraph (2), the total amount
of qualified outer Continental Shelf revenues made available
under subsection (a)(2) shall not exceed $500,000,000 for
each of fiscal years 2016 through 2055.
(2) Expenditures.--For the purpose of paragraph (1), for
each of fiscal years 2016 through 2055, expenditures under
subsection (a)(2) shall be net of receipts from that fiscal
year from any area in the 181 Area in the Eastern Planning
Area and the 181 South Area.
(3) Pro rata reductions.--If paragraph (1) limits the
amount of qualified outer Continental Shelf revenue that
would be paid under subparagraphs (A) and (B) of subsection
(a)(2)--
(A) the Secretary shall reduce the amount of qualified
outer Continental Shelf revenue provided to each recipient on
a pro rata basis; and
(B) any remainder of the qualified outer Continental Shelf
revenues shall revert to the general fund of the Treasury.
TITLE II--SURFACE MINING CONTROL AND RECLAMATION ACT AMENDMENTS OF 2006
SEC. 200. SHORT TITLE.
This title may be cited as the ``Surface Mining Control and
Reclamation Act Amendments of 2006''.
Subtitle A--Mining Control and Reclamation
SEC. 201. ABANDONED MINE RECLAMATION FUND AND PURPOSES.
(a) In General.--Section 401 of the Surface Mining Control
and Reclamation Act of 1977 (30 U.S.C. 1231) is amended--
(1) in subsection (c)--
(A) by striking paragraphs (2) and (6); and
(B) by redesignating paragraphs (3), (4), and (5) and
paragraphs (7) through (13) as paragraphs (2) through (11),
respectively;
(2) by striking subsection (d) and inserting the following:
``(d) Availability of Moneys; No Fiscal Year Limitation.--
``(1) In general.--Moneys from the fund for expenditures
under subparagraphs (A) through (D) of section 402(g)(3)
shall be available only when appropriated for those
subparagraphs.
``(2) No fiscal year limitation.--Appropriations described
in paragraph (1) shall be made without fiscal year
limitation.
``(3) Other purposes.--Moneys from the fund shall be
available for all other purposes of this title without prior
appropriation as provided in subsection (f).'';
(3) in subsection (e)--
(A) in the second sentence, by striking ``the needs of such
fund'' and inserting ``achieving the purposes of the
transfers under section 402(h)''; and
(B) in the third sentence, by inserting before the period
the following: ``for the purpose of the transfers under
section 402(h)''; and
(4) by adding at the end the following:
``(f) General Limitation on Obligation Authority.--
``(1) In general.--From amounts deposited into the fund
under subsection (b), the Secretary shall distribute during
each fiscal year beginning after September 30, 2007, an
amount determined under paragraph (2).
``(2) Amounts.--
``(A) For fiscal years 2008 through 2022.--For each of
fiscal years 2008 through 2022, the amount distributed by the
Secretary under this subsection shall be equal to--
``(i) the amounts deposited into the fund under paragraphs
(1), (2), and (4) of subsection (b) for the preceding fiscal
year that were allocated under paragraphs (1) and (5) of
section 402(g); plus
``(ii) the amount needed for the adjustment under section
402(g)(8) for the current fiscal year.
``(B) Fiscal years 2023 and thereafter.--For fiscal year
2023 and each fiscal year thereafter, to the extent that
funds are available, the Secretary shall distribute an amount
equal to the amount distributed under subparagraph (A) during
fiscal year 2022.
``(3) Distribution.--
``(A) In general.--Except as provided in subparagraph (B),
for each fiscal year, of the amount to be distributed to
States and Indian tribes pursuant to paragraph (2), the
Secretary shall distribute--
[[Page H9046]]
``(i) the amounts allocated under paragraph (1) of section
402(g), the amounts allocated under paragraph (5) of section
402(g), and any amount reallocated under section 411(h)(3) in
accordance with section 411(h)(2), for grants to States and
Indian tribes under section 402(g)(5); and
``(ii) the amounts allocated under section 402(g)(8).
``(B) Exclusion.--Beginning on October 1, 2007, certified
States shall be ineligible to receive amounts under section
402(g)(1).
``(4) Availability.--Amounts in the fund available to the
Secretary for obligation under this subsection shall be
available until expended.
``(5) Addition.--
``(A) In general.--Subject to subparagraph (B), the amount
distributed under this subsection for each fiscal year shall
be in addition to the amount appropriated from the fund
during the fiscal year.
``(B) Exceptions.--Notwithstanding paragraph (3), the
amount distributed under this subsection for the first 4
fiscal years beginning on and after October 1, 2007, shall be
equal to the following percentage of the amount otherwise
required to be distributed:
``(i) 50 percent in fiscal year 2008.
``(ii) 50 percent in fiscal year 2009.
``(iii) 75 percent in fiscal year 2010.
``(iv) 75 percent in fiscal year 2011.''.
(b) Conforming Amendment.--Section 712(b) of the Surface
Mining Control and Reclamation Act of 1977 (30 U.S.C.
1302(b)) is amended by striking ``section 401(c)(11)'' and
inserting ``section 401(c)(9)''.
SEC. 202. RECLAMATION FEE.
(a) Amounts.--
(1) Fiscal years 2008-2012.--Effective October 1, 2007,
section 402(a) of the Surface Mining Control and Reclamation
Act of 1977 (30 U.S.C. 1232(a)) is amended--
(A) by striking ``35'' and inserting ``31.5'';
(B) by striking ``15'' and inserting ``13.5''; and
(C) by striking ``10 cents'' and inserting ``9 cents''.
(2) Fiscal years 2013-2021.--Effective October 1, 2012,
section 402(a) of the Surface Mining Control and Reclamation
Act of 1977 (30 U.S.C. 1232(a)) (as amended by paragraph (1))
is amended--
(A) by striking ``31.5'' and inserting ``28'';
(B) by striking ``13.5'' and inserting ``12''; and
(C) by striking ``9 cents'' and inserting ``8 cents''.
(b) Duration.--Effective September 30, 2007, section 402(b)
of the Surface Mining Control and Reclamation Act of 1977 (30
U.S.C. 1232(b)) (as amended by section 7007 of the Emergency
Supplemental Appropriations Act for Defense, the Global War
on Terror, and Hurricane Recovery, 2006 (Public Law 109-234;
120 Stat. 484)) is amended by striking ``September 30, 2007''
and all that follows through the end of the sentence and
inserting ``September 30, 2021.''.
(c) Allocation of Funds.--Section 402(g) of the Surface
Mining Control and Reclamation Act of 1977 (30 U.S.C.
1232(g)) is amended--
(1) in paragraph (1)(D)--
(A) by inserting ``(except for grants awarded during fiscal
years 2008, 2009, and 2010 to the extent not expended within
5 years)'' after ``this paragraph''; and
(B) by striking ``in any area under paragraph (2), (3),
(4), or (5)'' and inserting ``under paragraph (5)'';
(2) by striking paragraph (2) and inserting:
``(2) In making the grants referred to in paragraph (1)(C)
and the grants referred to in paragraph (5), the Secretary
shall ensure strict compliance by the States and Indian
tribes with the priorities described in section 403(a) until
a certification is made under section 411(a).'';
(3) in paragraph (3)--
(A) in the matter preceding subparagraph (A), by striking
``paragraphs (2) and'' and inserting ``paragraph'';
(B) in subparagraph (A), by striking ``401(c)(11)'' and
inserting ``401(c)(9)''; and
(C) by adding at the end the following:
``(E) For the purpose of paragraph (8).'';
(4) in paragraph (5)--
(A) by inserting ``(A)'' after ``(5)'';
(B) in the first sentence, by striking ``40'' and inserting
``60'';
(C) in the last sentence, by striking ``Funds allocated or
expended by the Secretary under paragraphs (2), (3), or (4)''
and inserting ``Funds made available under paragraph (3) or
(4)''; and
(D) by adding at the end the following:
``(B) Any amount that is reallocated and available under
section 411(h)(3) shall be in addition to amounts that are
allocated under subparagraph (A).''; and
(5) by striking paragraphs (6) through (8) and inserting
the following:
``(6)(A) Any State with an approved abandoned mine
reclamation program pursuant to section 405 may receive and
retain, without regard to the 3-year limitation referred to
in paragraph (1)(D), up to 30 percent of the total of the
grants made annually to the State under paragraphs (1) and
(5) if those amounts are deposited into an acid mine drainage
abatement and treatment fund established under State law,
from which amounts (together with all interest earned on the
amounts) are expended by the State for the abatement of the
causes and the treatment of the effects of acid mine drainage
in a comprehensive manner within qualified hydrologic units
affected by coal mining practices.
``(B) In this paragraph, the term `qualified hydrologic
unit' means a hydrologic unit--
``(i) in which the water quality has been significantly
affected by acid mine drainage from coal mining practices in
a manner that adversely impacts biological resources; and
``(ii) that contains land and water that are--
``(I) eligible pursuant to section 404 and include any of
the priorities described in section 403(a); and
``(II) the subject of expenditures by the State from the
forfeiture of bonds required under section 509 or from other
States sources to abate and treat acid mine drainage.
``(7) In complying with the priorities described in section
403(a), any State or Indian tribe may use amounts available
in grants made annually to the State or tribe under
paragraphs (1) and (5) for the reclamation of eligible land
and water described in section 403(a)(3) before the
completion of reclamation projects under paragraphs (1) and
(2) of section 403(a) only if the expenditure of funds for
the reclamation is done in conjunction with the expenditure
before, on, or after the date of enactment of the Surface
Mining Control and Reclamation Act Amendments of 2006 of
funds for reclamation projects under paragraphs (1) and (2)
of section 403(a).
``(8)(A) In making funds available under this title, the
Secretary shall ensure that the grant awards total not less
than $3,000,000 annually to each State and each Indian tribe
having an approved abandoned mine reclamation program
pursuant to section 405 and eligible land and water pursuant
to section 404, so long as an allocation of funds to the
State or tribe is necessary to achieve the priorities stated
in paragraphs (1) and (2) of section 403(a).
``(B) Notwithstanding any other provision of law, this
paragraph applies to the States of Tennessee and Missouri.''.
(d) Transfers of Interest Earned by Abandoned Mine
Reclamation Fund.--Section 402 of the Surface Mining Control
and Reclamation Act of 1977 (30 U.S.C. 1232) is amended by
striking subsection (h) and inserting the following:
``(h) Transfers of Interest Earned by Fund.--
``(1) In general.--
``(A) Transfers to combined benefit fund.--As soon as
practicable after the beginning of fiscal year 2007 and each
fiscal year thereafter, and before making any allocation with
respect to the fiscal year under subsection (g), the
Secretary shall use an amount not to exceed the amount of
interest that the Secretary estimates will be earned and paid
to the fund during the fiscal year to transfer to the
Combined Benefit Fund such amounts as are estimated by the
trustees of such fund to offset the amount of any deficit in
net assets in the Combined Benefit Fund as of October 1,
2006, and to make the transfer described in paragraph (2)(A).
``(B) Transfers to 1992 and 1993 plans.--As soon as
practicable after the beginning of fiscal year 2008 and each
fiscal year thereafter, and before making any allocation with
respect to the fiscal year under subsection (g), the
Secretary shall use an amount not to exceed the amount of
interest that the Secretary estimates will be earned and paid
to the fund during the fiscal year (reduced by the amount
used under subparagraph (A)) to make the transfers described
in paragraphs (2)(B) and (2)(C).
``(2) Transfers described.--The transfers referred to in
paragraph (1) are the following:
``(A) United mine workers of america combined benefit
fund.--A transfer to the United Mine Workers of America
Combined Benefit Fund equal to the amount that the trustees
of the Combined Benefit Fund estimate will be expended from
the fund for the fiscal year in which the transfer is made,
reduced by--
``(i) the amount the trustees of the Combined Benefit Fund
estimate the Combined Benefit Fund will receive during the
fiscal year in--
``(I) required premiums; and
``(II) payments paid by Federal agencies in connection with
benefits provided by the Combined Benefit Fund; and
``(ii) the amount the trustees of the Combined Benefit Fund
estimate will be expended during the fiscal year to provide
health benefits to beneficiaries who are unassigned
beneficiaries solely as a result of the application of
section 9706(h)(1) of the Internal Revenue Code of 1986, but
only to the extent that such amount does not exceed the
amounts described in subsection (i)(1)(A) that the Secretary
estimates will be available to pay such estimated
expenditures.
``(B) United mine workers of america 1992 benefit plan.--A
transfer to the United Mine Workers of America 1992 Benefit
Plan, in an amount equal to the difference between--
``(i) the amount that the trustees of the 1992 UMWA Benefit
Plan estimate will be expended from the 1992 UMWA Benefit
Plan during the next calendar year to provide the benefits
required by the 1992 UMWA Benefit Plan on the date of
enactment of this subparagraph; minus
``(ii) the amount that the trustees of the 1992 UMWA
Benefit Plan estimate the 1992 UMWA Benefit Plan will receive
during the next calendar year in--
``(I) required monthly per beneficiary premiums, including
the amount of any security provided to the 1992 UMWA Benefit
Plan that is available for use in the provision of benefits;
and
[[Page H9047]]
``(II) payments paid by Federal agencies in connection with
benefits provided by the 1992 UMWA benefit plan.
``(C) Multiemployer health benefit plan.--A transfer to the
Multiemployer Health Benefit Plan established after July 20,
1992, by the parties that are the settlors of the 1992 UMWA
Benefit Plan referred to in subparagraph (B) (referred to in
this subparagraph and subparagraph (D) as `the Plan'), in an
amount equal to the excess (if any) of--
``(i) the amount that the trustees of the Plan estimate
will be expended from the Plan during the next calendar year,
to provide benefits no greater than those provided by the
Plan as of December 31, 2006; over
``(ii) the amount that the trustees estimated the Plan will
receive during the next calendar year in payments paid by
Federal agencies in connection with benefits provided by the
Plan.
Such excess shall be calculated by taking into account only
those beneficiaries actually enrolled in the Plan as of
December 31, 2006, who are eligible to receive benefits under
the Plan on the first day of the calendar year for which the
transfer is made.
``(D) Individuals considered enrolled.--For purposes of
subparagraph (C), any individual who was eligible to receive
benefits from the Plan as of the date of enactment of this
subsection, even though benefits were being provided to the
individual pursuant to a settlement agreement approved by
order of a bankruptcy court entered on or before September
30, 2004, will be considered to be actually enrolled in the
Plan and shall receive benefits from the Plan beginning on
December 31, 2006.
``(3) Adjustment.--If, for any fiscal year, the amount of a
transfer under subparagraph (A), (B), or (C) of paragraph (2)
is more or less than the amount required to be transferred
under that subparagraph, the Secretary shall appropriately
adjust the amount transferred under that subparagraph for the
next fiscal year.
``(4) Additional amounts.--
``(A) Previously credited interest.--Notwithstanding any
other provision of law, any interest credited to the fund
that has not previously been transferred to the Combined
Benefit Fund referred to in paragraph (2)(A) under this
section--
``(i) shall be held in reserve by the Secretary until such
time as necessary to make the payments under subparagraphs
(A) and (B) of subsection (i)(1), as described in clause
(ii); and
``(ii) in the event that the amounts described in
subsection (i)(1) are insufficient to make the maximum
payments described in subparagraphs (A) and (B) of subsection
(i)(1), shall be used by the Secretary to supplement the
payments so that the maximum amount permitted under those
paragraphs is paid.
``(B) Previously allocated amounts.--All amounts allocated
under subsection (g)(2) before the date of enactment of this
subparagraph for the program described in section 406, but
not appropriated before that date, shall be available to the
Secretary to make the transfers described in paragraph (2).
``(C) Adequacy of previously credited interest.--The
Secretary shall--
``(i) consult with the trustees of the plans described in
paragraph (2) at reasonable intervals; and
``(ii) notify Congress if a determination is made that the
amounts held in reserve under subparagraph (A) are
insufficient to meet future requirements under subparagraph
(A)(ii).
``(D) Additional reserve amounts.--In addition to amounts
held in reserve under subparagraph (A), there is authorized
to be appropriated such sums as may be necessary for transfer
to the fund to carry out the purposes of subparagraph
(A)(ii).
``(E) Inapplicability of cap.--The limitation described in
subsection (i)(3)(A) shall not apply to payments made from
the reserve fund under this paragraph.
``(5) Limitations.--
``(A) Availability of funds for next fiscal year.--The
Secretary may make transfers under subparagraphs (B) and (C)
of paragraph (2) for a calendar year only if the Secretary
determines, using actuarial projections provided by the
trustees of the Combined Benefit Fund referred to in
paragraph (2)(A), that amounts will be available under
paragraph (1), after the transfer, for the next fiscal year
for making the transfer under paragraph (2)(A).
``(B) Rate of contributions of obligors.--
``(i) In general.--
``(I) Rate.--A transfer under paragraph (2)(C) shall not be
made for a calendar year unless the persons that are
obligated to contribute to the plan referred to in paragraph
(2)(C) on the date of the transfer are obligated to make the
contributions at rates that are no less than those in effect
on the date which is 30 days before the date of enactment of
this subsection.
``(II) Application.--The contributions described in
subclause (I) shall be applied first to the provision of
benefits to those plan beneficiaries who are not described in
paragraph (2)(C)(ii).
``(ii) Initial contributions.--
``(I) In general.--From the date of enactment of the
Surface Mining Control and Reclamation Act Amendments of 2006
through December 31, 2010, the persons that, on the date of
enactment of that Act, are obligated to contribute to the
plan referred to in paragraph (2)(C) shall be obligated,
collectively, to make contributions equal to the amount
described in paragraph (2)(C), less the amount actually
transferred due to the operation of subparagraph (C).
``(II) First calendar year.--Calendar year 2006 is the
first calendar year for which contributions are required
under this clause.
``(III) Amount of contribution for 2006.--Except as
provided in subclause (IV), the amount described in paragraph
(2)(C) for calendar year 2006 shall be calculated as if
paragraph (2)(C) had been in effect during 2005.
``(IV) Limitation.--The contributions required under this
clause for calendar year 2006 shall not exceed the amount
necessary for solvency of the plan described in paragraph
(2)(C), measured as of December 31, 2006 and taking into
account all assets held by the plan as of that date.
``(iii) Division.--The collective annual contribution
obligation required under clause (ii) shall be divided among
the persons subject to the obligation, and applied uniformly,
based on the hours worked for which contributions referred to
in clause (i) would be owed.
``(C) Phase-in of transfers.--For each of calendar years
2008 through 2010, the transfers required under subparagraphs
(B) and (C) of paragraph (2) shall equal the following
amounts:
``(i) For calendar year 2008, the Secretary shall make
transfers equal to 25 percent of the amounts that would
otherwise be required under subparagraphs (B) and (C) of
paragraph (2).
``(ii) For calendar year 2009, the Secretary shall make
transfers equal to 50 percent of the amounts that would
otherwise be required under subparagraphs (B) and (C) of
paragraph (2).
``(iii) For calendar year 2010, the Secretary shall make
transfers equal to 75 percent of the amounts that would
otherwise be required under subparagraphs (B) and (C) of
paragraph (2).
``(i) Funding.--
``(1) In general.--Subject to paragraph (3), out of any
funds in the Treasury not otherwise appropriated, the
Secretary of the Treasury shall transfer to the plans
described in subsection (h)(2) such sums as are necessary to
pay the following amounts:
``(A) To the Combined Fund (as defined in section
9701(a)(5) of the Internal Revenue Code of 1986 and referred
to in this paragraph as the `Combined Fund'), the amount that
the trustees of the Combined Fund estimate will be expended
from premium accounts maintained by the Combined Fund for the
fiscal year to provide benefits for beneficiaries who are
unassigned beneficiaries solely as a result of the
application of section 9706(h)(1) of the Internal Revenue
Code of 1986, subject to the following limitations:
``(i) For fiscal year 2008, the amount paid under this
subparagraph shall equal--
``(I) the amount described in subparagraph (A); minus
``(II) the amounts required under section 9706(h)(3)(A) of
the Internal Revenue Code of 1986.
``(ii) For fiscal year 2009, the amount paid under this
subparagraph shall equal--
``(I) the amount described in subparagraph (A); minus
``(II) the amounts required under section 9706(h)(3)(B) of
the Internal Revenue Code of 1986.
``(iii) For fiscal year 2010, the amount paid under this
subparagraph shall equal--
``(I) the amount described in subparagraph (A); minus
``(II) the amounts required under section 9706(h)(3)(C) of
the Internal Revenue Code of 1986.
``(B) On certification by the trustees of any plan
described in subsection (h)(2) that the amount available for
transfer by the Secretary pursuant to this section
(determined after application of any limitation under
subsection (h)(5)) is less than the amount required to be
transferred, to the plan the amount necessary to meet the
requirement of subsection (h)(2).
``(C) To the Combined Fund, $9,000,000 on October 1, 2007,
$9,000,000 on October 1, 2008, and $9,000,000 on October 1,
2009 (which amounts shall not be exceeded) to provide a
refund of any premium (as described in section 9704(a) of the
Internal Revenue Code of 1986) paid on or before September 7,
2000, to the Combined Fund, plus interest on the premium
calculated at the rate of 7.5 percent per year, on a
proportional basis and to be paid not later than 60 days
after the date on which each payment is received by the
Combined Fund, to those signatory operators (to the extent
that the Combined Fund has not previously returned the
premium amounts to the operators), or any related persons to
the operators (as defined in section 9701(c) of the Internal
Revenue Code of 1986), or their heirs, successors, or assigns
who have been denied the refunds as the result of final
judgments or settlements if--
``(i) prior to the date of enactment of this paragraph, the
signatory operator (or any related person to the operator)--
``(I) had all of its beneficiary assignments made under
section 9706 of the Internal Revenue Code of 1986 voided by
the Commissioner of the Social Security Administration; and
``(II) was subject to a final judgment or final settlement
of litigation adverse to a claim by the operator that the
assignment of beneficiaries under section 9706 of the
Internal Revenue Code of 1986 was unconstitutional as applied
to the operator; and
``(ii) on or before September 7, 2000, the signatory
operator (or any related person to the
[[Page H9048]]
operator) had paid to the Combined Fund any premium amount
that had not been refunded.
``(2) Payments to states and indian tribes.--Subject to
paragraph (3), out of any funds in the Treasury not otherwise
appropriated, the Secretary of the Treasury shall transfer to
the Secretary of the Interior for distribution to States and
Indian tribes such sums as are necessary to pay amounts
described in paragraphs (1)(A) and (2)(A) of section 411(h).
``(3) Limitations.--
``(A) Cap.--The total amount transferred under this
subsection for any fiscal year shall not exceed $490,000,000.
``(B) Insufficient amounts.--In a case in which the amount
required to be transferred without regard to this paragraph
exceeds the maximum annual limitation in subparagraph (A),
the Secretary shall adjust the transfers of funds so that--
``(i) each transfer for the fiscal year is a percentage of
the amount described;
``(ii) the amount is determined without regard to
subsection (h)(5)(A); and
``(iii) the percentage transferred is the same for all
transfers made under this subsection for the fiscal year.
``(4) Availability of funds.--Funds shall be transferred
under paragraph (1) and (2) beginning in fiscal year 2008 and
each fiscal year thereafter, and shall remain available until
expended.''.
SEC. 203. OBJECTIVES OF FUND.
Section 403 of the Surface Mining Control and Reclamation
Act of 1977 (30 U.S.C. 1233) is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by striking ``(1) the protection'' and inserting the
following:
``(1)(A) the protection;'';
(ii) in subparagraph (A) (as designated by clause (i)), by
striking ``general welfare,''; and
(iii) by adding at the end the following:
``(B) the restoration of land and water resources and the
environment that--
``(i) have been degraded by the adverse effects of coal
mining practices; and
``(ii) are adjacent to a site that has been or will be
remediated under subparagraph (A);'';
(B) in paragraph (2)--
(i) by striking ``(2) the protection'' and inserting the
following:
``(2)(A) the protection'';
(ii) in subparagraph (A) (as designated by clause (i), by
striking ``health, safety, and general welfare'' and
inserting ``health and safety''; and
(iii) by adding at the end the following:
``(B) the restoration of land and water resources and the
environment that--
``(i) have been degraded by the adverse effects of coal
mining practices; and
``(ii) are adjacent to a site that has been or will be
remediated under subparagraph (A); and'';
(C) in paragraph (3), by striking the semicolon at the end
and inserting a period; and
(D) by striking paragraphs (4) and (5);
(2) in subsection (b)--
(A) by striking the subsection heading and inserting
``Water Supply Restoration.--''; and
(B) in paragraph (1), by striking ``up to 30 percent of
the''; and
(3) in the second sentence of subsection (c), by inserting
``, subject to the approval of the Secretary,'' after
``amendments''.
SEC. 204. RECLAMATION OF RURAL LAND.
(a) Administration.--Section 406(h) of the Surface Mining
Control and Reclamation Act of 1977 (30 U.S.C. 1236(h)) is
amended by striking ``Soil Conservation Service'' and
inserting ``Natural Resources Conservation Service''.
(b) Authorization of Appropriations for Carrying Out Rural
Land Reclamation.--Section 406 of the Surface Mining Control
and Reclamation Act of 1977 (30 U.S.C. 1236) is amended by
adding at the end the following:
``(i) There are authorized to be appropriated to the
Secretary of Agriculture, from amounts in the Treasury other
than amounts in the fund, such sums as may be necessary to
carry out this section.''.
SEC. 205. LIENS.
Section 408(a) of the Surface Mining Control and
Reclamation Act of 1977 (30 U.S.C. 1238) is amended in the
last sentence by striking ``who owned the surface prior to
May 2, 1977, and''.
SEC. 206. CERTIFICATION.
Section 411 of the Surface Mining Control and Reclamation
Act of 1977 (30 U.S.C. 1240a) is amended--
(1) in subsection (a)--
(A) by inserting ``(1)'' before the first sentence; and
(B) by adding at the end the following:
``(2)(A) The Secretary may, on the initiative of the
Secretary, make the certification referred to in paragraph
(1) on behalf of any State or Indian tribe referred to in
paragraph (1) if on the basis of the inventory referred to in
section 403(c) all reclamation projects relating to the
priorities described in section 403(a) for eligible land and
water pursuant to section 404 in the State or tribe have been
completed.
``(B) The Secretary shall only make the certification after
notice in the Federal Register and opportunity for public
comment.''; and
(2) by adding at the end the following:
``(h) Payments to States and Indian Tribes.--
``(1) In general.--
``(A) Payments.--
``(i) In general.--Notwithstanding section 401(f)(3)(B),
from funds referred to in section 402(i)(2), the Secretary
shall make payments to States or Indian tribes for the amount
due for the aggregate unappropriated amount allocated to the
State or Indian tribe under subparagraph (A) or (B) of
section 402(g)(1).
``(ii) Conversion as equivalent payments.--Amounts
allocated under subparagraphs (A) or (B) of section 402(g)(1)
shall be reallocated to the allocation established in section
402(g)(5) in amounts equivalent to payments made to States or
Indian tribes under this paragraph.
``(B) Amount due.--In this paragraph, the term `amount due'
means the unappropriated amount allocated to a State or
Indian tribe before October 1, 2007, under subparagraph (A)
or (B) of section 402(g)(1).
``(C) Schedule.--Payments under subparagraph (A) shall be
made in 7 equal annual installments, beginning with fiscal
year 2008.
``(D) Use of funds.--
``(i) Certified states and indian tribes.--A State or
Indian tribe that makes a certification under subsection (a)
in which the Secretary concurs shall use any amounts provided
under this paragraph for the purposes established by the
State legislature or tribal council of the Indian tribe, with
priority given for addressing the impacts of mineral
development.
``(ii) Uncertified states and indian tribes.--A State or
Indian tribe that has not made a certification under
subsection (a) in which the Secretary has concurred shall use
any amounts provided under this paragraph for the purposes
described in section 403.
``(2) Subsequent state and indian tribe share for certified
states and indian tribes.--
``(A) In general.--Notwithstanding section 401(f)(3)(B),
from funds referred to in section 402(i)(2), the Secretary
shall pay to each certified State or Indian tribe an amount
equal to the sum of the aggregate unappropriated amount
allocated on or after October 1, 2007, to the certified State
or Indian tribe under subparagraph (A) or (B) of section
402(g)(1).
``(B) Certified state or indian tribe defined.--In this
paragraph the term `certified State or Indian tribe' means a
State or Indian tribe for which a certification is made under
subsection (a) in which the Secretary concurs.
``(3) Manner of payment.--
``(A) In general.--Subject to subparagraph (B), payments to
States or Indian tribes under this subsection shall be made
without regard to any limitation in section 401(d) and
concurrently with payments to States under that section.
``(B) Initial payments.--The first 3 payments made to any
State or Indian tribe shall be reduced to 25 percent, 50
percent, and 75 percent, respectively, of the amounts
otherwise required under paragraph (2)(A).
``(C) Installments.--Amounts withheld from the first 3
annual installments as provided under subparagraph (B) shall
be paid in 2 equal annual installments beginning with fiscal
year 2018.
``(4) Reallocation.--
``(A) In general.--The amount allocated to any State or
Indian tribe under subparagraph (A) or (B) of section
402(g)(1) that is paid to the State or Indian tribe as a
result of a payment under paragraph (1) or (2) shall be
reallocated and available for grants under section 402(g)(5).
``(B) Allocation.--The grants shall be allocated based on
the amount of coal historically produced before August 3,
1977, in the same manner as under section 402(g)(5).''.
SEC. 207. REMINING INCENTIVES.
Title IV of the Surface Mining Control and Reclamation Act
of 1977 (30 U.S.C. 1231 et seq.) is amended by adding at the
following:
``SEC. 415. REMINING INCENTIVES.
``(a) In General.--Notwithstanding any other provision of
this Act, the Secretary may, after opportunity for public
comment, promulgate regulations that describe conditions
under which amounts in the fund may be used to provide
incentives to promote remining of eligible land under section
404 in a manner that leverages the use of amounts from the
fund to achieve more reclamation with respect to the eligible
land than would be achieved without the incentives.
``(b) Requirements.--Any regulations promulgated under
subsection (a) shall specify that the incentives shall apply
only if the Secretary determines, with the concurrence of the
State regulatory authority referred to in title V, that,
without the incentives, the eligible land would not be likely
to be remined and reclaimed.
``(c) Incentives.--
``(1) In general.--Incentives that may be considered for
inclusion in the regulations promulgated under subsection (a)
include, but are not limited to--
``(A) a rebate or waiver of the reclamation fees required
under section 402(a); and
``(B) the use of amounts in the fund to provide financial
assurance for remining operations in lieu of all or a portion
of the performance bonds required under section 509.
``(2) Limitations.--
``(A) Use.--A rebate or waiver under paragraph (1)(A) shall
be used only for operations that--
``(i) remove or reprocess abandoned coal mine waste; or
``(ii) conduct remining activities that meet the priorities
specified in paragraph (1) or (2) of section 403(a).
``(B) Amount.--The amount of a rebate or waiver provided as
an incentive under paragraph (1)(A) to remine or reclaim
eligible
[[Page H9049]]
land shall not exceed the estimated cost of reclaiming the
eligible land under this section.''.
SEC. 208. EXTENSION OF LIMITATION ON APPLICATION OF
PROHIBITION ON ISSUANCE OF PERMIT.
Section 510(e) of the Surface Mining Control and
Reclamation Act of 1977 (30 U.S.C. 1260(e)) is amended by
striking the last sentence.
SEC. 209. TRIBAL REGULATION OF SURFACE COAL MINING AND
RECLAMATION OPERATIONS.
(a) In General.--Section 710 of the Surface Mining Control
and Reclamation Act of 1977 (30 U.S.C. 1300) is amended by
adding at the end the following:
``(j) Tribal Regulatory Authority.--
``(1) Tribal regulatory programs.--
``(A) In general.--Notwithstanding any other provision of
law, an Indian tribe may apply for, and obtain the approval
of, a tribal program under section 503 regulating in whole or
in part surface coal mining and reclamation operations on
reservation land under the jurisdiction of the Indian tribe
using the procedures of section 504(e).
``(B) References to state.--For purposes of this subsection
and the implementation and administration of a tribal program
under title V, any reference to a `State' in this Act shall
be considered to be a reference to a `tribe'.
``(2) Conflicts of interest.--
``(A) In general.--The fact that an individual is a member
of an Indian tribe does not in itself constitute a violation
of section 201(f).
``(B) Employees of tribal regulatory authority.--Any
employee of a tribal regulatory authority shall not be
eligible for a per capita distribution of any proceeds from
coal mining operations conducted on Indian reservation lands
under this Act.
``(3) Sovereign immunity.--To receive primary regulatory
authority under section 504(e), an Indian tribe shall waive
sovereign immunity for purposes of section 520 and paragraph
(4).
``(4) Judicial review.--
``(A) Civil actions.--
``(i) In general.--After exhausting all tribal remedies
with respect to a civil action arising under a tribal program
approved under section 504(e), an interested party may file a
petition for judicial review of the civil action in the
United States circuit court for the circuit in which the
surface coal mining operation named in the petition is
located.
``(ii) Scope of review.--
``(I) Questions of law.--The United States circuit court
shall review de novo any questions of law under clause (i).
``(II) Findings of fact.--The United States circuit court
shall review findings of fact under clause (i) using a
clearly erroneous standard.
``(B) Criminal actions.--Any criminal action brought under
section 518 with respect to surface coal mining or
reclamation operations on Indian reservation lands shall be
brought in--
``(i) the United States District Court for the District of
Columbia; or
``(ii) the United States district court in which the
criminal activity is alleged to have occurred.
``(5) Grants.--
``(A) In general.--Except as provided in subparagraph (B),
grants for developing, administering, and enforcing tribal
programs approved in accordance with section 504(e) shall be
provided to an Indian tribe in accordance with section 705.
``(B) Exception.--Notwithstanding subparagraph (A), the
Federal share of the costs of developing, administering, and
enforcing an approved tribal program shall be 100 percent.
``(6) Report.--Not later than 18 months after the date on
which a tribal program is approved under subsection (e) of
section 504, the Secretary shall submit to the appropriate
committees of Congress a report, developed in cooperation
with the applicable Indian tribe, on the tribal program that
includes a recommendation of the Secretary on whether primary
regulatory authority under that subsection should be expanded
to include additional Indian lands.''.
(b) Conforming Amendment.--Section 710(i) of the Surface
Mining Control and Reclamation Act of 1977 (30 U.S.C.
1300(i)) is amended in the first sentence by striking ``,
except'' and all that follows through ``section 503''.
Subtitle B--Coal Industry Retiree Health Benefit Act
SEC. 211. CERTAIN RELATED PERSONS AND SUCCESSORS IN INTEREST
RELIEVED OF LIABILITY IF PREMIUMS PREPAID.
(a) Combined Benefit Fund.--Section 9704 of the Internal
Revenue Code of 1986 (relating to liability of assigned
operators) is amended by adding at the end the following new
subsection:
``(j) Prepayment of Premium Liability.--
``(1) In general.--If--
``(A) a payment meeting the requirements of paragraph (3)
is made to the Combined Fund by or on behalf of--
``(i) any assigned operator to which this subsection
applies, or
``(ii) any related person to any assigned operator
described in clause (i), and
``(B) the common parent of the controlled group of
corporations described in paragraph (2)(B) is jointly and
severally liable for any premium under this section which
(but for this subsection) would be required to be paid by the
assigned operator or related person,
then such common parent (and no other person) shall be liable
for such premium.
``(2) Assigned operators to which subsection applies.--
``(A) In general.--This subsection shall apply to any
assigned operator if--
``(i) the assigned operator (or a related person to the
assigned operator)--
``(I) made contributions to the 1950 UMWA Benefit Plan and
the 1974 UMWA Benefit Plan for employment during the period
covered by the 1988 agreement; and
``(II) is not a 1988 agreement operator,
``(ii) the assigned operator (and all related persons to
the assigned operator) are not actively engaged in the
production of coal as of July 1, 2005, and
``(iii) the assigned operator was, as of July 20, 1992, a
member of a controlled group of corporations described in
subparagraph (B).
``(B) Controlled group of corporations.--A controlled group
of corporations is described in this subparagraph if the
common parent of such group is a corporation the shares of
which are publicly traded on a United States exchange.
``(C) Coordination with repeal of assignments.--A person
shall not fail to be treated as an assigned operator to which
this subsection applies solely because the person ceases to
be an assigned operator by reason of section 9706(h)(1) if
the person otherwise meets the requirements of this
subsection and is liable for the payment of premiums under
section 9706(h)(3).
``(D) Controlled group.--For purposes of this subsection,
the term `controlled group of corporations' has the meaning
given such term by section 52(a).
``(3) Requirements.--A payment meets the requirements of
this paragraph if--
``(A) the amount of the payment is not less than the
present value of the total premium liability under this
chapter with respect to the Combined Fund of the assigned
operators or related persons described in paragraph (1) or
their assignees, as determined by the operator's or related
person's enrolled actuary (as defined in section 7701(a)(35))
using actuarial methods and assumptions each of which is
reasonable and which are reasonable in the aggregate, as
determined by such enrolled actuary;
``(B) such enrolled actuary files with the Secretary of
Labor a signed actuarial report containing--
``(i) the date of the actuarial valuation applicable to the
report; and
``(ii) a statement by the enrolled actuary signing the
report that, to the best of the actuary's knowledge, the
report is complete and accurate and that in the actuary's
opinion the actuarial assumptions used are in the aggregate
reasonably related to the experience of the operator and to
reasonable expectations; and
``(C) 90 calendar days have elapsed after the report
required by subparagraph (B) is filed with the Secretary of
Labor, and the Secretary of Labor has not notified the
assigned operator in writing that the requirements of this
paragraph have not been satisfied.
``(4) Use of prepayment.--The Combined Fund shall--
``(A) establish and maintain an account for each assigned
operator or related person by, or on whose behalf, a payment
described in paragraph (3) was made,
``(B) credit such account with such payment (and any
earnings thereon), and
``(C) use all amounts in such account exclusively to pay
premiums that would (but for this subsection) be required to
be paid by the assigned operator.
Upon termination of the obligations for the premium liability
of any assigned operator or related person for which such
account is maintained, all funds remaining in such account
(and earnings thereon) shall be refunded to such person as
may be designated by the common parent described in paragraph
(1)(B).''.
(b) Individual Employer Plans.--Section 9711(c) of the
Internal Revenue Code of 1986 (relating to joint and several
liability) is amended to read as follows:
``(c) Joint and Several Liability of Related Persons.--
``(1) In general.--Except as provided in paragraph (2),
each related person of a last signatory operator to which
subsection (a) or (b) applies shall be jointly and severally
liable with the last signatory operator for the provision of
health care coverage described in subsection (a) or (b).
``(2) Liability limited if security provided.--If--
``(A) security meeting the requirements of paragraph (3) is
provided by or on behalf of--
``(i) any last signatory operator which is an assigned
operator described in section 9704(j)(2), or
``(ii) any related person to any last signatory operator
described in clause (i), and
``(B) the common parent of the controlled group of
corporations described in section 9704(j)(2)(B) is jointly
and severally liable for the provision of health care under
this section which, but for this paragraph, would be required
to be provided by the last signatory operator or related
person,
then, as of the date the security is provided, such common
parent (and no other person) shall be liable for the
provision of health care under this section which the last
signatory operator or related person would otherwise be
required to provide. Security may be provided under this
paragraph without regard to whether a payment was made under
section 9704(j).
[[Page H9050]]
``(3) Security.--Security meets the requirements of this
paragraph if--
``(A) the security--
``(i) is in the form of a bond, letter of credit, or cash
escrow,
``(ii) is provided to the trustees of the 1992 UMWA Benefit
Plan solely for the purpose of paying premiums for
beneficiaries who would be described in section 9712(b)(2)(B)
if the requirements of this section were not met by the last
signatory operator, and
``(iii) is in an amount equal to 1 year of liability of the
last signatory operator under this section, determined by
using the average cost of such operator's liability during
the prior 3 calendar years;
``(B) the security is in addition to any other security
required under any other provision of this title; and
``(C) the security remains in place for 5 years.
``(4) Refunds of security.--The remaining amount of any
security provided under this subsection (and earnings
thereon) shall be refunded to the last signatory operator as
of the earlier of--
``(A) the termination of the obligations of the last
signatory operator under this section, or
``(B) the end of the 5-year period described in paragraph
(4)(C).''.
(c) 1992 UMWA Benefit Plan.--Section 9712(d)(4) of the
Internal Revenue Code of 1986 (relating to joint and several
liability) is amended by adding at the end the following new
sentence: ``The provisions of section 9711(c)(2) shall apply
to any last signatory operator described in such section
(without regard to whether security is provided under such
section, a payment is made under section 9704(j), or both)
and if security meeting the requirements of section
9711(c)(3) is provided, the common parent described in
section 9711(c)(2)(B) shall be exclusively responsible for
any liability for premiums under this section which, but for
this sentence, would be required to be paid by the last
signatory operator or any related person.''.
(d) Successor in Interest.--Section 9701(c) of the Internal
Revenue Code of 1986 (relating to terms relating to
operators) is amended by adding at the end the following new
paragraph:
``(8) Successor in interest.--
``(A) Safe harbor.--The term `successor in interest' shall
not include any person who--
``(i) is an unrelated person to an eligible seller
described in subparagraph (C); and
``(ii) purchases for fair market value assets, or all of
the stock, of a related person to such seller, in a bona
fide, arm's-length sale.
``(B) Unrelated person.--The term `unrelated person' means
a purchaser who does not bear a relationship to the eligible
seller described in section 267(b).
``(C) Eligible seller.--For purposes of this paragraph, the
term `eligible seller' means an assigned operator described
in section 9704(j)(2) or a related person to such assigned
operator.''.
(e) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act,
except that the amendment made by subsection (d) shall apply
to transactions after the date of the enactment of this Act.
SEC. 212. TRANSFERS TO FUNDS; PREMIUM RELIEF.
(a) Combined Fund.--
(1) Federal transfers.--Section 9705(b) of the Internal
Revenue Code of 1986 (relating to transfers from Abandoned
Mine Reclamation Fund) is amended--
(A) in paragraph (1), by striking ``section 402(h)'' and
inserting ``subsections (h) and (i) of section 402'';
(B) by striking paragraph (2) and inserting the following
new paragraph:
``(2) Use of funds.--Any amount transferred under paragraph
(1) for any fiscal year shall be used to pay benefits and
administrative costs of beneficiaries of the Combined Fund or
for such other purposes as are specifically provided in the
Acts described in paragraph (1).''; and
(C) by striking ``From Abandoned Mine Reclamation Fund'' in
the heading thereof.
(2) Modifications of premiums to reflect federal
transfers.--
(A) Elimination of unassigned beneficiaries premium.--
Section 9704(d) of such Code (establishing unassigned
beneficiaries premium) is amended to read as follows:
``(d) Unassigned Beneficiaries Premium.--
``(1) Plan years ending on or before september 30, 2006.--
For plan years ending on or before September 30, 2006, the
unassigned beneficiaries premium for any assigned operator
shall be equal to the applicable percentage of the product of
the per beneficiary premium for the plan year multiplied by
the number of eligible beneficiaries who are not assigned
under section 9706 to any person for such plan year.
``(2) Plan years beginning on or after october 1, 2006.--
``(A) In general.--For plan years beginning on or after
October 1, 2006, subject to subparagraph (B), there shall be
no unassigned beneficiaries premium, and benefit costs with
respect to eligible beneficiaries who are not assigned under
section 9706 to any person for any such plan year shall be
paid from amounts transferred under section 9705(b).
``(B) Inadequate transfers.--If, for any plan year
beginning on or after October 1, 2006, the amounts
transferred under section 9705(b) are less than the amounts
required to be transferred to the Combined Fund under
subsection (h)(2)(A) or (i) of section 402 of the Surface
Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232)),
then the unassigned beneficiaries premium for any assigned
operator shall be equal to the operator's applicable
percentage of the amount required to be so transferred which
was not so transferred.''.
(B) Premium accounts.--
(i) Crediting of accounts.--Section 9704(e)(1) of such Code
(relating to premium accounts; adjustments) is amended by
inserting ``and amounts transferred under section 9705(b)''
after ``premiums received''.
(ii) Surpluses attributable to public funding.--Section
9704(e)(3)(A) of such Code is amended by adding at the end
the following new sentence: ``Amounts credited to an account
from amounts transferred under section 9705(b) shall not be
taken into account in determining whether there is a surplus
in the account for purposes of this paragraph.''
(C) Applicable percentage.--Section 9704(f)(2) of such Code
(relating to annual adjustments) is amended by adding at the
end the following new subparagraph:
``(C) In the case of plan years beginning on or after
October 1, 2007, the total number of assigned eligible
beneficiaries shall be reduced by the eligible beneficiaries
whose assignments have been revoked under section 9706(h).''.
(3) Assignments and reassignment.--Section 9706 of the
Internal Revenue Code of 1986 (relating to assignment of
eligible beneficiaries) is amended by adding at the end the
following:
``(h) Assignments as of October 1, 2007.--
``(1) In general.--Subject to the premium obligation set
forth in paragraph (3), the Commissioner of Social Security
shall--
``(A) revoke all assignments to persons other than 1988
agreement operators for purposes of assessing premiums for
plan years beginning on and after October 1, 2007; and
``(B) make no further assignments to persons other than
1988 agreement operators, except that no individual who
becomes an unassigned beneficiary by reason of subparagraph
(A) may be assigned to a 1988 agreement operator.
``(2) Reassignment upon purchase.--This subsection shall
not be construed to prohibit the reassignment under
subsection (b)(2) of an eligible beneficiary.
``(3) Liability of persons during three fiscal years
beginning on and after october 1, 2007.--In the case of each
of the fiscal years beginning on October 1, 2007, 2008, and
2009, each person other than a 1988 agreement operator shall
pay to the Combined Fund the following percentage of the
amount of annual premiums that such person would otherwise be
required to pay under section 9704(a), determined on the
basis of assignments in effect without regard to the
revocation of assignments under paragraph (1)(A):
``(A) For the fiscal year beginning on October 1, 2007, 55
percent.
``(B) For the fiscal year beginning on October 1, 2008, 40
percent.
``(C) For the fiscal year beginning on October 1, 2009, 15
percent.''.
(4) Effective date.--The amendments made by this subsection
shall apply to plan years of the Combined Fund beginning
after September 30, 2006.
(b) 1992 UMWA Benefit and Other Plans.--
(1) Transfers to plans.--Section 9712(a) of the Internal
Revenue Code of 1986 (relating to the establishment and
coverage of the 1992 UMWA Benefit Plan) is amended by adding
at the end the following:
``(3) Transfers under other federal statutes.--
``(A) In general.--The 1992 UMWA Benefit Plan shall include
any amount transferred to the plan under subsections (h) and
(i) of section 402 of the Surface Mining Control and
Reclamation Act of 1977 (30 U.S.C. 1232).
``(B) Use of funds.--Any amount transferred under
subparagraph (A) for any fiscal year shall be used to provide
the health benefits described in subsection (c) with respect
to any beneficiary for whom no monthly per beneficiary
premium is paid pursuant to paragraph (1)(A) or (3) of
subsection (d).
``(4) Special rule for 1993 plan.--
``(A) In general.--The plan described in section
402(h)(2)(C) of the Surface Mining Control and Reclamation
Act of 1977 (30 U.S.C. 1232(h)(2)(C)) shall include any
amount transferred to the plan under subsections (h) and (i)
of the Surface Mining Control and Reclamation Act of 1977 (30
U.S.C. 1232).
``(B) Use of funds.--Any amount transferred under
subparagraph (A) for any fiscal year shall be used to provide
the health benefits described in section 402(h)(2)(C)(i) of
the Surface Mining Control and Reclamation Act of 1977 (30
U.S.C. 1232(h)(2)(C)(i)) to individuals described in section
402(h)(2)(C) of such Act (30 U.S.C. 1232(h)(2)(C)).''.
(2) Premium adjustments.--
(A) In general.--Section 9712(d)(1) of such Code (relating
to guarantee of benefits) is amended to read as follows:
``(1) In general.--All 1988 last signatory operators shall
be responsible for financing the benefits described in
subsection (c) by meeting the following requirements in
accordance with the contribution requirements established in
the 1992 UMWA Benefit Plan:
``(A) The payment of a monthly per beneficiary premium by
each 1988 last signatory operator for each eligible
beneficiary of such operator who is described in subsection
(b)(2) and who is receiving benefits under the 1992 UMWA
benefit plan.
[[Page H9051]]
``(B) The provision of a security (in the form of a bond,
letter of credit, or cash escrow) in an amount equal to a
portion of the projected future cost to the 1992 UMWA Benefit
Plan of providing health benefits for eligible and
potentially eligible beneficiaries attributable to the 1988
last signatory operator.
``(C) If the amounts transferred under subsection (a)(3)
are less than the amounts required to be transferred to the
1992 UMWA Benefit Plan under subsections (h) and (i) of
section 402 of the Surface Mining Control and Reclamation Act
of 1977 (30 U.S.C. 1232), the payment of an additional
backstop premium by each 1988 last signatory operator which
is equal to such operator's share of the amounts required to
be so transferred but which were not so transferred,
determined on the basis of the number of eligible and
potentially eligible beneficiaries attributable to the
operator.''.
(B) Conforming amendments.--Section 9712(d) of such Code is
amended--
(i) in paragraph (2)(B), by striking ``prefunding'' and
inserting ``backstop'', and
(ii) in paragraph (3), by striking ``paragraph (1)(B)'' and
inserting ``paragraph (1) (A)''.
(C) Effective date.--The amendments made by this paragraph
shall apply to fiscal years beginning on or after October 1,
2010.
SEC. 213. OTHER PROVISIONS.
(a) Board of Trustees.--Section 9702(b) of the Internal
Revenue Code of 1986 (relating to board of trustees of the
Combined Fund) is amended to read as follows:
``(b) Board of Trustees.--
``(1) In general.--For purposes of subsection (a), the
board of trustees for the Combined Fund shall be appointed as
follows:
``(A) 2 individuals who represent employers in the coal
mining industry shall be designated by the BCOA;
``(B) 2 individuals designated by the United Mine Workers
of America; and
``(C) 3 individuals selected by the individuals appointed
under subparagraphs (A) and (B).
``(2) Successor trustees.--Any successor trustee shall be
appointed in the same manner as the trustee being succeeded.
The plan establishing the Combined Fund shall provide for the
removal of trustees.
``(3) Special rule.--If the BCOA ceases to exist, any
trustee or successor under paragraph (1)(A) shall be
designated by the 3 employers who were members of the BCOA on
the enactment date and who have been assigned the greatest
number of eligible beneficiaries under section 9706.''.
(b) Enforcement of Obligations.--
(1) Failure to pay premiums.--Section 9707(a) of the
Internal Revenue Code of 1986 is amended to read as follows:
``(a) Failures to Pay.--
``(1) Premiums for eligible beneficiaries.--There is hereby
imposed a penalty on the failure of any assigned operator to
pay any premium required to be paid under section 9704 with
respect to any eligible beneficiary.
``(2) Contributions required under the mining laws.--There
is hereby imposed a penalty on the failure of any person to
make a contribution required under section 402(h)(5)(B)(ii)
of the Surface Mining Control and Reclamation Act of 1977 to
a plan referred to in section 402(h)(2)(C) of such Act. For
purposes of applying this section, each such required monthly
contribution for the hours worked of any individual shall be
treated as if it were a premium required to be paid under
section 9704 with respect to an eligible beneficiary.''.
(2) Civil enforcement.--Section 9721 of such Code is
amended to read as follows:
``SEC. 9721. CIVIL ENFORCEMENT.
``The provisions of section 4301 of the Employee Retirement
Income Security Act of 1974 shall apply, in the same manner
as any claim arising out of an obligation to pay withdrawal
liability under subtitle E of title IV of such Act, to any
claim--
``(1) arising out of an obligation to pay any amount
required to be paid by this chapter; or
``(2) arising out of an obligation to pay any amount
required by section 402(h)(5)(B)(ii) of the Surface Mining
Control and Reclamation Act of 1977 (30 U.S.C.
1232(h)(5)(B)(ii)).''.
TITLE III--WHITE PINE COUNTY CONSERVATION, RECREATION, AND DEVELOPMENT
SEC. 301. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as are
necessary to carry out this title.
SEC. 302. SHORT TITLE.
This title may be cited as the ``White Pine County
Conservation, Recreation, and Development Act of 2006''.
SEC. 303. DEFINITIONS.
In this title:
(1) County.--The term ``County'' means White Pine County,
Nevada.
(2) Secretary.--The term ``Secretary'' means--
(A) with respect to land in the National Forest System, the
Secretary of Agriculture; and
(B) with respect to other Federal land, the Secretary of
the Interior.
(3) State.--The term ``State'' means the State of Nevada.
Subtitle A--Land Disposal
SEC. 311. CONVEYANCE OF WHITE PINE COUNTY, NEVADA, LAND.
(a) In General.--Notwithstanding sections 202 and 203 of
the Federal Land Policy and Management Act of 1976 (43 U.S.C.
1712, 1713), the Secretary, in cooperation with the County,
in accordance with that Act, this subtitle, and other
applicable law and subject to valid existing rights, shall,
at such time as the parcels of Federal land become available
for disposal, conduct sales of the parcels of Federal land
described in subsection (b) to qualified bidders.
(b) Description of Land.--The parcels of Federal land
referred to in subsection (a) consist of not more than 45,000
acres of Bureau of Land Management land in the County that--
(1) is not segregated or withdrawn on or after the date of
enactment of this Act, unless the land is withdrawn in
accordance with subsection (h); and
(2) is identified for disposal by the Bureau of Land
Management through--
(A) the Ely Resource Management Plan; or
(B) a subsequent amendment to the management plan that is
undertaken with full public involvement.
(c) Availability.--The map and any legal descriptions of
the Federal land conveyed under this section shall be on file
and available for public inspection in--
(1) the Office of the Director of the Bureau of Land
Management;
(2) the Office of the Nevada State Director of the Bureau
of Land Management; and
(3) the Ely Field Office of the Bureau of Land Management.
(d) Joint Selection Required.--The Secretary and the County
shall jointly select which parcels of Federal land described
in subsection (b) to offer for sale under subsection (a).
(e) Compliance With Local Planning and Zoning Laws.--Before
a sale of Federal land under subsection (a), the County shall
submit to the Secretary a certification that qualified
bidders have agreed to comply with--
(1) County and city zoning ordinances; and
(2) any master plan for the area approved by the County.
(f) Method of Sale; Consideration.--The sale of Federal
land under subsection (a) shall be--
(1) consistent with subsections (d) and (f) of section 203
of the Federal Land Management Policy Act of 1976 (43 U.S.C.
1713);
(2) unless otherwise determined by the Secretary, through a
competitive bidding process; and
(3) for not less than fair market value.
(g) Recreation and Public Purposes Act Conveyances.--
(1) In general.--Not later than 30 days before land is
offered for sale under subsection (a), the State or County
may elect to obtain any of the land for local public purposes
in accordance with the Act of June 14, 1926 (commonly known
as the ``Recreation and Public Purposes Act'') (43 U.S.C. 869
et seq.).
(2) Retention.--Pursuant to an election made under
paragraph (1), the Secretary shall retain the elected land
for conveyance to the State or County in accordance with the
Act of June 14, 1926 (commonly known as the ``Recreation and
Public Purposes Act'') (43 U.S.C. 869 et seq.).
(h) Withdrawal.--
(1) In general.--Subject to valid existing rights and
except as provided in paragraph (2), the Federal land
described in subsection (b) is withdrawn from--
(A) all forms of entry and appropriation under the public
land laws and mining laws;
(B) location and patent under the mining laws; and
(C) operation of the mineral laws, geothermal leasing laws,
and mineral material laws.
(2) Exception.--Paragraph (1)(A) shall not apply to sales
made consistent with this section or an election by the
County or the State to obtain the land described in
subsection (b) for public purposes under the Act of June 14,
1926 (commonly known as the ``Recreation and Public Purposes
Act'')(43 U.S.C. 869 et seq.).
(i) Deadline for Sale.--
(1) In general.--Except as provided in paragraph (2), not
later than 1 year after the date of the signing of the record
of decision authorizing the implementation of the Ely
Resource Management Plan and annually thereafter until the
Federal land described in subsection (b) is disposed of or
the County requests a postponement under paragraph (2), the
Secretary shall offer for sale the Federal land described in
subsection (b).
(2) Postponement; exclusion from sale.--
(A) Request by county for postponement or exclusion.--At
the request of the County, the Secretary shall postpone or
exclude from the sale all or a portion of the land described
in subsection (b).
(B) Indefinite postponement.--Unless specifically requested
by the County, a postponement under subparagraph (A) shall
not be indefinite.
SEC. 312. DISPOSITION OF PROCEEDS.
Of the proceeds from the sale of Federal land described in
section _11(b)--
(1) 5 percent shall be paid directly to the State for use
in the general education program of the State;
(2) 10 percent shall be paid to the County for use for fire
protection, law enforcement, education, public safety,
housing, social services, transportation, and planning; and
(3) the remainder shall be deposited in a special account
in the Treasury of the United States, to be known as the
``White Pine County Special Account'' (referred to in this
subtitle as the ``special account''), and
[[Page H9052]]
shall be available without further appropriation to the
Secretary until expended for--
(A) the reimbursement of costs incurred by the Nevada State
office and the Ely Field Office of the Bureau of Land
Management for preparing for the sale of Federal land
described in section _11(b), including the costs of surveys
and appraisals and compliance with the National Environmental
Policy Act of 1969 (42 U.S.C. 4321) and sections 202 and 203
of the Federal Land Policy and Management Act of 1976 (43
U.S.C. 1712, 1713);
(B) the inventory, evaluation, protection, and management
of unique archaeological resources (as defined in section 3
of the Archaeological Resources Protection Act of 1979 (16
U.S.C. 470bb)) of the County;
(C) the reimbursement of costs incurred by the Department
of the Interior for preparing and carrying out the transfers
of land to be held in trust by the United States under
section _61;
(D) conducting a study of routes for the Silver State Off-
Highway Vehicle Trail as required by section _55(a);
(E) developing and implementing the Silver State Off-
Highway Vehicle Trail management plan described in section
_55(c);
(F) wilderness protection and processing wilderness
designations, including the costs of appropriate fencing,
signage, public education, and enforcement for the wilderness
areas designated;
(G) if the Secretary determines necessary, developing and
implementing conservation plans for endangered or at risk
species in the County; and
(H) carrying out a study to assess non-motorized recreation
opportunities on Federal land in the County.
Subtitle B--Wilderness Areas
SEC. 321. SHORT TITLE.
This subtitle may be cited as the ``Pam White Wilderness
Act of 2006''.
SEC. 322. FINDINGS.
Congress finds that--
(1) public land in the County contains unique and
spectacular natural resources, including--
(A) priceless habitat for numerous species of plants and
wildlife; and
(B) thousands of acres of land that remain in a natural
state; and
(2) continued preservation of those areas would benefit the
County and all of the United States by--
(A) ensuring the conservation of ecologically diverse
habitat;
(B) protecting prehistoric cultural resources;
(C) conserving primitive recreational resources; and
(D) protecting air and water quality.
SEC. 323. ADDITIONS TO NATIONAL WILDERNESS PRESERVATION
SYSTEM.
(a) Additions.--The following land in the State is
designated as wilderness and as components of the National
Wilderness Preservation System:
(1) Mt. moriah wilderness addition.--Certain Federal land
managed by the Forest Service and the Bureau of Land
Management, comprising approximately 11,261 acres, as
generally depicted on the map entitled ``Eastern White Pine
County'' and dated November 29, 2006, is incorporated in, and
shall be managed as part of, the Mt. Moriah Wilderness, as
designated by section 2(13) of the Nevada Wilderness
Protection Act of 1989 (16 U.S.C. 1132 note; Public Law 101-
195).
(2) Mount grafton wilderness.--Certain Federal land managed
by the Bureau of Land Management, comprising approximately
78,754 acres, as generally depicted on the map entitled
``Southern White Pine County'' and dated November 29, 2006,
which shall be known as the ``Mount Grafton Wilderness''.
(3) South egan range wilderness.--Certain Federal land
managed by the Bureau of Land Management, comprising
approximately 67,214 acres, as generally depicted on the map
entitled ``Southern White Pine County'' and dated November
29, 2006, which shall be known as the ``South Egan Range
Wilderness''.
(4) Highland ridge wilderness.--Certain Federal land
managed by the Bureau of Land Management and the Forest
Service, comprising approximately 68,627 acres, as generally
depicted on the map entitled ``Southern White Pine County''
and dated November 29, 2006, which shall be known as the
``Highland Ridge Wilderness''.
(5) Government peak wilderness.--Certain Federal land
managed by the Bureau of Land Management, comprising
approximately 6,313 acres, as generally depicted on the map
entitled ``Eastern White Pine County'' and dated November 29,
2006, which shall be known as the ``Government Peak
Wilderness''.
(6) Currant mountain wilderness addition.--Certain Federal
land managed by the Forest Service, comprising approximately
10,697 acres, as generally depicted on the map entitled
``Western White Pine County'' and dated November 29, 2006, is
incorporated in, and shall be managed as part of, the
``Currant Mountain Wilderness'', as designated by section
2(4) of the Nevada Wilderness Protection Act of 1989 (16
U.S.C. 1132 note; Public Law 101-195).
(7) Red mountain wilderness.--Certain Federal land managed
by the Forest Service, comprising approximately 20,490 acres,
as generally depicted on the map entitled ``Western White
Pine County'' and dated November 29, 2006, which shall be
known as the ``Red Mountain Wilderness''.
(8) Bald mountain wilderness.--Certain Federal land managed
by the Bureau of Land Management and the Forest Service,
comprising approximately 22,366 acres, as generally depicted
on the map entitled ``Western White Pine County'' and dated
November 29, 2006, which shall be known as the ``Bald
Mountain Wilderness''.
(9) White pine range wilderness.--Certain Federal land
managed by the Forest Service, comprising approximately
40,013 acres, as generally depicted on the map entitled
``Western White Pine County'' and dated November 29, 2006,
which shall be known as the ``White Pine Range Wilderness''.
(10) Shellback wilderness.--Certain Federal land managed by
the Forest Service, comprising approximately 36,143 acres, as
generally depicted on the map entitled ``Western White Pine
County'' and dated November 29, 2006, which shall be known as
the ``Shellback Wilderness''.
(11) High schells wilderness.--Certain Federal land managed
by the Forest Service, comprising approximately 121,497
acres, as generally depicted on the map entitled ``Eastern
White Pine County'' and dated November 29, 2006, which shall
be known as the ``High Schells Wilderness''.
(12) Becky peak wilderness.--Certain Federal land managed
by the Bureau of Land Management, comprising approximately
18,119 acres, as generally depicted on the map entitled
``Northern White Pine County'' and dated November 29, 2006,
which shall be known as the ``Becky Peak Wilderness''.
(13) Goshute canyon wilderness.--Certain Federal land
managed by the Bureau of Land Management, comprising
approximately 42,544 acres, as generally depicted on the map
entitled ``Northern White Pine County'' and dated November
29, 2006, which shall be known as the ``Goshute Canyon
Wilderness''.
(14) Bristlecone wilderness.--Certain Federal land managed
by the Bureau of Land Management, comprising approximately
14,095 acres, as generally depicted on the map entitled
``Eastern White Pine County'' and dated November 29, 2006,
which shall be known as the ``Bristlecone Wilderness''.
(b) Boundary.--The boundary of any portion of a wilderness
area designated by subsection (a) that is bordered by a road
shall be at least 100 feet from the edge of the road to allow
public access.
(c) Map and Legal Description.--
(1) In general.--As soon as practicable after the date of
enactment of this Act, the Secretary shall file a map and
legal description of each wilderness area designated by
subsection (a) with the Committee on Energy and Natural
Resources of the Senate and the Committee on Resources of the
House of Representatives.
(2) Effect.--Each map and legal description shall have the
same force and effect as if included in this section, except
that the Secretary may correct clerical and typographical
errors in the map or legal description.
(3) Availability.--Each map and legal description shall be
on file and available for public inspection in the
appropriate offices of--
(A) the Bureau of Land Management;
(B) the Forest Service; and
(C) the National Park Service.
(d) Withdrawal.--Subject to valid existing rights, the
wilderness areas designated by subsection (a) are withdrawn
from--
(1) all forms of entry, appropriation, and disposal under
the public land laws;
(2) location, entry, and patent under the mining laws; and
(3) operation of the mineral leasing and geothermal leasing
laws.
(e) Mt. Moriah Wilderness Boundary Adjustment.--The
boundary of the Mt. Moriah Wilderness established under
section 2(13) of the Nevada Wilderness Protection Act of 1989
(16 U.S.C. 1132 note; Public Law 101-195) is adjusted to
include only the land identified as the ``Mount Moriah
Wilderness Area'' and ``Mount Moriah Additions'' on the map
entitled ``Eastern White Pine County'' and dated November 29,
2006.
SEC. 324. ADMINISTRATION.
(a) Management.--Subject to valid existing rights, each
area designated as wilderness by this subtitle shall be
administered by the Secretary in accordance with the
Wilderness Act (16 U.S.C. 1131 et seq.), except that--
(1) any reference in that Act to the effective date shall
be considered to be a reference to the date of enactment of
this Act; and
(2) any reference in that Act to the Secretary of
Agriculture shall be considered to be a reference to the
Secretary of Agriculture or the Secretary of the Interior, as
appropriate.
(b) Livestock.--Within the wilderness areas designated
under this subtitle that are administered by the Bureau of
Land Management and the Forest Service, the grazing of
livestock in areas in which grazing is established as of the
date of enactment of this Act shall be allowed to continue--
(1) subject to such reasonable regulations, policies, and
practices that the Secretary considers necessary; and
(2) consistent with section 4(d)(4) of the Wilderness Act
(16 U.S.C. 1133(d)(4)), including the guidelines set forth in
Appendix A of House Report 101-405.
(c) Incorporation of Acquired Land and Interests.--Any land
or interest in land within the boundaries of an area
designated as wilderness by this subtitle 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.
[[Page H9053]]
(d) Water Rights.--
(1) Findings.--Congress finds that--
(A) the land designated as wilderness by this subtitle is
located--
(i) in the semiarid region of the Great Basin; and
(ii) at the headwaters of the streams and rivers on land
with respect to which there are few if any--
(I) actual or proposed water resource facilities located
upstream; and
(II) opportunities for diversion, storage, or other uses of
water occurring outside the land that would adversely affect
the wilderness values of the land;
(B) the land designated as wilderness by this subtitle is
generally not suitable for use or development of new water
resource facilities; and
(C) because of the unique nature of the land designated as
wilderness by this subtitle, it is possible to provide for
proper management and protection of the wilderness and other
values of land in ways different from those used in other
laws.
(2) Purpose.--The purpose of this section is to protect the
wilderness values of the land designated as wilderness by
this subtitle by means other than a federally reserved water
right.
(3) Statutory construction.--Nothing in this subtitle--
(A) shall constitute or be construed to constitute either
an express or implied reservation by the United States of any
water or water rights with respect to a wilderness designated
by this subtitle;
(B) shall affect any water rights in the State (including
any water rights held by the United States) in existence on
the date of enactment of this Act;
(C) shall be construed as establishing a precedent with
regard to any future wilderness designations;
(D) shall affect the interpretation of, or any designation
made pursuant to, any other Act; or
(E) shall be construed as limiting, altering, modifying, or
amending any interstate compact or equitable apportionment
decree that apportions water among and between the State and
other States.
(4) Nevada water law.--The Secretary shall follow the
procedural and substantive requirements of State law in order
to obtain and hold any water rights not in existence on the
date of enactment of this Act with respect to the wilderness
areas designated by this subtitle.
(5) New projects.--
(A) Definition of water resource facility.--In this
paragraph, the term ``water resource facility''--
(i) means irrigation and pumping facilities, reservoirs,
water conservation works, aqueducts, canals, ditches,
pipelines, wells, hydropower projects, transmission and other
ancillary facilities, and other water diversion, storage, and
carriage structures; and
(ii) does not include wildlife guzzlers.
(B) Restriction on new water resource facilities.--Except
as otherwise provided in this title, on or after the date of
enactment of this Act, neither the President nor any other
officer, employee, or agent of the United States shall fund,
assist, authorize, or issue a license or permit for the
development of any new water resource facility within a
wilderness area that is wholly or partially within the
County.
SEC. 325. ADJACENT MANAGEMENT.
(a) In General.--Congress does not intend for the
designation of wilderness in the State by this subtitle to
lead to the creation of protective perimeters or buffer zones
around any such wilderness area.
(b) Nonwilderness Activities.--The fact that nonwilderness
activities or uses can be seen or heard from areas within a
wilderness designated under this subtitle shall not preclude
the conduct of those activities or uses outside the boundary
of the wilderness area.
SEC. 326. MILITARY OVERFLIGHTS.
Nothing in this subtitle restricts or precludes--
(1) low-level overflights of military aircraft over the
areas designated as wilderness by this subtitle, including
military overflights that can be seen or heard within the
wilderness areas;
(2) flight testing and evaluation; or
(3) the designation or creation of new units of special use
airspace, or the establishment of military flight training
routes, over the wilderness areas.
SEC. 327. NATIVE AMERICAN CULTURAL AND RELIGIOUS USES.
Nothing in this subtitle shall be construed to diminish--
(1) the rights of any Indian tribe; or
(2) tribal rights regarding access to Federal land for
tribal activities, including spiritual, cultural, and
traditional food-gathering activities.
SEC. 328. RELEASE OF WILDERNESS STUDY AREAS.
(a) Finding.--Congress finds that, for the purposes of
section 603 of the Federal Land Policy and Management Act of
1976 (43 U.S.C. 1782), the Bureau of Land Management land has
been adequately studied for wilderness designation in any
portion of the wilderness study areas or instant study
areas--
(1) not designated as wilderness by section _23(a),
excluding the portion of the Goshute Canyon Wilderness Study
Area located outside of the County; and
(2) depicted as released on the maps entitled--
(A) ``Eastern White Pine County'' and dated November 29,
2006;
(B) ``Northern White Pine County'' and dated November 29,
2006;
(C) ``Southern White Pine County'' and dated November 29,
2006; and
(D) ``Western White Pine County'' and dated November 29,
2006.
(b) Release.--
(1) In general.--Any public land described in subsection
(a) that is not designated as wilderness by this subtitle--
(A) is no longer subject to section 603(c) of the Federal
Land Policy and Management Act of 1976 (43 U.S.C. 1782(c));
(B) shall be managed in accordance with--
(i) land management plans adopted under section 202 of that
Act (43 U.S.C. 1712); and
(ii) cooperative conservation agreements in existence on
the date of enactment of this Act; and
(C) shall be subject to the Endangered Species Act of 1973
(16 U.S.C. 1531 et seq.).
(2) Exception.--The requirements described in paragraph (1)
shall not apply to the portion of the Goshute Canyon
Wilderness Study Area located outside of the County.
SEC. 329. WILDLIFE MANAGEMENT.
(a) In General.--In accordance with section 4(d)(7) of the
Wilderness Act (16 U.S.C. 1133(d)(7)), nothing in this
subtitle affects the jurisdiction of the State with respect
to fish and wildlife management, including the regulation of
hunting, fishing, and trapping, in the wilderness areas
designated by this subtitle.
(b) Management Activities.--In furtherance of the purposes
and principles of the Wilderness Act (16 U.S.C. 1131 et
seq.), the Secretary may conduct such management activities
as are necessary to maintain or restore fish and wildlife
populations and habitats in the wilderness areas designated
by this subtitle if those activities are conducted--
(1) consistent with relevant wilderness management plans;
and
(2) in accordance with--
(A) the Wilderness Act (16 U.S.C. 1131 et seq.); and
(B) appropriate policies such as those set forth in
Appendix B of House Report 101-405, including the occasional
and temporary use of motorized vehicles if the use, as
determined by the Secretary, would promote healthy, viable,
and more naturally distributed wildlife populations that
would enhance wilderness values and accomplish those tasks
with the minimal impact necessary to reasonably accomplish
those tasks.
(c) Existing Activities.--Consistent with section 4(d)(1)
of the Wilderness Act (16 U.S.C. 1133(d)(1)) and in
accordance with appropriate policies such as those set forth
in Appendix B of House Report 101-405, the State may continue
to use aircraft, including helicopters, to survey, capture,
transplant, monitor, and provide water for wildlife
populations, including bighorn sheep, and feral stock, feral
horses, and feral burros.
(d) Wildlife Water Development Projects.--Subject to
subsection (f), the Secretary shall authorize structures and
facilities, including existing structures and facilities, for
wildlife water development projects, including guzzlers, in
the wilderness areas designated by this subtitle if--
(1) the structures and facilities will, as determined by
the Secretary, enhance wilderness values by promoting
healthy, viable, and more naturally distributed wildlife
populations; and
(2) the visual impacts of the structures and facilities on
the wilderness areas can reasonably be minimized.
(e) Hunting, Fishing, and Trapping.--
(1) In general.--The Secretary may designate by regulation
areas in which, and establish periods during which, for
reasons of public safety, administration, or compliance with
applicable laws, no hunting, fishing, or trapping will be
permitted in the wilderness areas designated by this
subtitle.
(2) Consultation.--Except in emergencies, the Secretary
shall consult with the appropriate State agency before
promulgating regulations under paragraph (1).
(f) Cooperative Agreement.--
(1) In general.--The State (including a designee of the
State) may conduct wildlife management activities in the
wilderness areas designated by this subtitle--
(A) in accordance with the terms and conditions specified
in the cooperative agreement between the Secretary and the
State, entitled ``Memorandum of Understanding between the
Bureau of Land Management and the Nevada Department of
Wildlife Supplement No. 9,'' and signed November and December
2003, including any amendments to the cooperative agreement
agreed to by the Secretary and the State; and
(B) subject to all applicable laws and regulations.
(2) References.--
(A) Clark county.--For purposes of this subsection, any
references to Clark County in the cooperative agreement
described in paragraph (1)(A) shall be considered to be
references to White Pine County, Nevada.
(B) Bureau of land management.--For purposes of this
subsection, any references to the Bureau of Land Management
in the cooperative agreement described in paragraph (1)(A)
shall also be considered to be references to the Forest
Service.
SEC. 330. WILDFIRE, INSECT, AND DISEASE MANAGEMENT.
Consistent with section 4(d)(1) of the Wilderness Act (16
U.S.C. 1133(d)(1)), the Secretary may take such measures as
may be necessary in the control of fire, insects, and
[[Page H9054]]
diseases, including coordination with a State or local
agency, as the Secretary deems appropriate.
SEC. 331. CLIMATOLOGICAL DATA COLLECTION.
If the Secretary determines that hydrologic, meteorologic,
or climatological collection devices are appropriate to
further the scientific, educational, and conservation
purposes of the wilderness areas designated by this subtitle,
nothing in this subtitle precludes the installation and
maintenance of the collection devices within the wilderness
areas.
Subtitle C--Transfers of Administrative Jurisdiction
SEC. 341. TRANSFER TO THE UNITED STATES FISH AND WILDLIFE
SERVICE.
(a) In General.--Administrative jurisdiction over the land
described in subsection (b) is transferred from the Bureau of
Land Management to the United States Fish and Wildlife
Service for inclusion in the Ruby Lake National Wildlife
Refuge.
(b) Description of Land.--The parcel of land referred to in
subsection (a) is approximately 645 acres of land
administered by the Bureau of Land Management and identified
on the map entitled ``Ruby Lake Land Transfer'' and dated
July 10, 2006, as ``Lands to be transferred to the Fish and
Wildlife Service''.
SEC. 342. TRANSFER TO THE BUREAU OF LAND MANAGEMENT.
(a) In General.--Subject to subsection (c), administrative
jurisdiction over the parcels of land described in subsection
(b) is transferred from the Forest Service to the Bureau of
Land Management.
(b) Description of Land.--The parcels of land referred to
in subsection (a) are--
(1) the land administered by the Forest Service and
identified on the map entitled ``Southern White Pine County''
and dated November 29, 2006, as ``Withdrawal Area'';
(2) the land administered by the Forest Service and
identified on the map entitled ``Southern White Pine County''
and dated November 29, 2006, as ``Highland Ridge
Wilderness''; and
(3) all other Federal land administered by the Forest
Service that is located adjacent to the Highland Ridge
Wilderness.
(c) Continuation of Cooperative Agreements.--Any existing
Forest Service cooperative agreement or permit in effect on
the date of enactment of this Act relating to a parcel of
land to which administrative jurisdiction is transferred by
subsection (a) shall be continued by the Bureau of Land
Management unless there is reasonable cause to terminate the
agreement or permit, as determined by the Secretary.
(d) Withdrawal.--Subject to valid existing rights, all
Federal land within the Withdrawal Area is withdrawn from all
forms of--
(1) entry, appropriation, or disposal under the public land
laws;
(2) location, entry, and patent under the mining laws; and
(3) operation of the mineral laws, geothermal leasing laws,
and mineral materials laws.
(e) Motorized and Mechanical Vehicles.--Use of motorized
and mechanical vehicles in the withdrawal area designated by
this subtitle shall be permitted only on roads and trails
designated for their use, unless the use of those vehicles is
needed--
(1) for administrative purposes; or
(2) to respond to an emergency.
SEC. 343. TRANSFER TO THE FOREST SERVICE.
(a) In General.--Subject to subsection (c), administrative
jurisdiction over the parcels of land described in subsection
(b) is transferred from the Bureau of Land Management to the
Forest Service.
(b) Description of Land.--The parcels of land referred to
in subsection (a) are the approximately 5,799 acres of land
administered by the Bureau of Land Management and identified
on the map entitled ``Western White Pine County'', dated
November 29, 2006, as the BLM Public Land Transfer to the US
Forest Service.
(c) Continuation of Cooperative Agreements.--Any existing
Bureau of Land Management cooperative agreement or permit in
effect on the date of enactment of this Act relating to a
parcel of land to which administrative jurisdiction is
transferred by subsection (a) shall be continued by the
Forest Service unless there is reasonable cause to terminate
the agreement or permit, as determined by the Secretary.
SEC. 344. AVAILABILITY OF MAP AND LEGAL DESCRIPTIONS.
The maps of the land transferred by this subtitle shall be
on file and available for public inspection in the
appropriate offices of--
(1) the Bureau of Land Management;
(2) the Forest Service;
(3) the National Park Service; and
(4) the United States Fish and Wildlife Service.
Subtitle D--Public Conveyances
SEC. 351. CONVEYANCE TO THE STATE OF NEVADA.
(a) Conveyance.--Notwithstanding section 202 of the Federal
Land Policy and Management Act of 1976 (43 U.S.C. 1712), the
Secretary shall convey to the State, subject to valid
existing rights, for no consideration, all right, title, and
interest of the United States in and to the parcels of land
described in subsection (b) if the State and the County enter
into a written agreement supporting the conveyance.
(b) Description of Land.--The parcels of land referred to
in subsection (a) are--
(1) the approximately 6,281 acres of Bureau of Land
Management land identified as ``Steptoe Valley Wildlife
Management Area Expansion Proposal'' on the map entitled
``Ely, Nevada Area'' and dated November 29, 2006;
(2) the approximately 658 acres of Bureau of Land
Management land identified as ``Ward Charcoal Ovens
Expansion'' on the map entitled ``Ely, Nevada Area'' and
dated November 29, 2006; and
(3) the approximately 2,960 acres of Forest Service
identified as ``Cave Lake State Park Expansion'' on the map
entitled ``Ely, Nevada Area'' and dated November 29, 2006.
(c) Costs.--Any costs relating to a conveyance under
subsection (a), including costs for surveys and other
administrative costs, shall be paid by the State.
(d) Use of Land.--
(1) In general.--Any parcel of land conveyed to the State
under subsection (a) shall be used only for--
(A) the conservation of wildlife or natural resources; or
(B) a public park.
(2) Facilities.--Any facility on a parcel of land conveyed
under subsection (a) shall be constructed and managed in a
manner consistent with the uses described in paragraph (1).
(e) Reversion.--If a parcel of land conveyed under
subsection (a) is used in a manner that is inconsistent with
the uses described in subsection (d), the parcel of land
shall, at the discretion of the Secretary, revert to the
United States.
SEC. 352. CONVEYANCE TO WHITE PINE COUNTY, NEVADA.
(a) In General.--Notwithstanding section 202 of the Federal
Land Policy and Management Act of 1976 (43 U.S.C. 1712), the
Secretary shall convey to the County, without consideration,
all right, title, and interest of the United States in and to
the parcels of land described in subsection (b).
(b) Description of Land.--The parcels of land referred to
in subsection (a) are--
(1) the approximately 1,551 acres of land identified on the
map entitled ``Ely, Nevada Area'', dated November 29, 2006,
as the Airport Expansion; and
(2) the approximately 202 acres of land identified on the
map entitled ``Ely, Nevada Area'', dated November 29, 2006,
as the Industrial Park Expansion.
(c) Authorized Uses.--
(1) Airport expansion.--The parcel of land described in
subsection (b)(1) shall be used by the County to expand the
Ely Airport.
(2) Industrial park expansion.--The parcel of land
described in subsection (b)(2) shall be used by the County to
expand the White Pine County Industrial Park.
(3) Use of certain land for nonresidential development.--
(A) In general.--After conveyance to the County of the land
described in subsection (b), the County may sell, lease, or
otherwise convey any portion of the land conveyed for
purposes of nonresidential development relating to the
authorized uses described in paragraphs (1) and (2).
(B) Method of sale.--The sale, lease, or conveyance of land
under subparagraph (A) shall be--
(i) through a competitive bidding process; and
(ii) for not less than fair market value.
(C) Disposition of proceeds.--The gross proceeds from the
sale, lease, or conveyance of land under subparagraph (A)
shall be distributed in accordance with section _12.
(d) Reversion.--If a parcel of land conveyed under
subsection (a) is used in a manner that is inconsistent with
the use described for the parcel in paragraph (1), (2), or
(3) of subsection (c), the parcel of land shall, at the
discretion of the Secretary, revert to the United States.
Subtitle E--Silver State Off-Highway Vehicle Trail
SEC. 355. SILVER STATE OFF-HIGHWAY VEHICLE TRAIL.
(a) Study.--
(1) In general.--Not later than 3 years after the date of
enactment of this Act, the Secretary shall complete a study
of routes (with emphasis on roads and trails in existence on
the date of enactment of this Act) in accordance with the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.) for the Silver State Off-Highway Vehicle Trail
(referred to in this section as the ``Trail'').
(2) Preferred route.--Based on the study conducted under
paragraph (1), the Secretary, in consultation with the State,
the County, and any interested persons, shall identify the
preferred route for the Trail.
(b) Designation of Trail.--
(1) In general.--Subject to paragraph (2), not later than
90 days after the date on which the study is completed under
subsection (a), the Secretary shall designate the Trail.
(2) Limitations.--The Secretary shall designate the Trail
only if the Secretary--
(A) determines that the route of the Trail would not have
significant negative impacts on wildlife, natural or cultural
resources, or traditional uses; and
(B) ensures that the Trail designation--
(i) is an effort to extend the Silver State Off-Highway
Vehicle Trail designated under section 401(b) of the Lincoln
County Conservation, Recreation, and Development Act of 2004
(16 U.S.C. 1244 note; Public Law 108-424); and
(ii) is limited to--
(I) 1 route that generally runs in a north-south direction;
and
(II) 1 potential spur running west.
(c) Management.--
[[Page H9055]]
(1) In general.--The Secretary shall manage the Trail in a
manner that--
(A) is consistent with any motorized and mechanized uses of
the Trail that are authorized on the date of enactment of
this Act under applicable Federal and State laws (including
regulations);
(B) ensures the safety of the individuals who use the
Trail; and
(C) does not damage sensitive wildlife habitat, natural, or
cultural resources.
(2) Management plan.--
(A) In general.--Not later than 2 years after the date of
designation of the Trail, the Secretary, in consultation with
the State, the County, and any other interested persons,
shall complete a management plan for the Trail.
(B) Components.--The management plan shall--
(i) describe the appropriate uses and management of the
Trail;
(ii) authorize the use of motorized and mechanized vehicles
on the Trail; and
(iii) describe actions carried out to periodically evaluate
and manage the appropriate levels of use and location of the
Trail to minimize environmental impacts and prevent damage to
cultural resources from the use of the Trail.
(3) Monitoring and evaluation.--
(A) Annual assessment.--The Secretary shall annually
assess--
(i) the effects of the use of off-highway vehicles on the
Trail to minimize environmental impacts and prevent damage to
cultural resources from the use of the Trail; and
(ii) in consultation with the Nevada Department of
Wildlife, the effects of the Trail on wildlife and wildlife
habitat to minimize environmental impacts from the use of the
Trail.
(B) Closure.--The Secretary, in consultation with the State
and the County and subject to subparagraph (C), may
temporarily close or permanently reroute a portion of the
Trail if the Secretary determines that--
(i) the Trail is having an adverse impact on--
(I) wildlife habitats;
(II) natural resources;
(III) cultural resources; or
(IV) traditional uses;
(ii) the Trail threatens public safety;
(iii) closure of the Trail is necessary to repair damage to
the Trail; or
(iv) closure of the Trail is necessary to repair resource
damage.
(C) Rerouting.--Any portion of the Trail that is
temporarily closed may be permanently rerouted along existing
roads and trails on public land open to motorized use if the
Secretary determines that rerouting the portion of the Trail
would not significantly increase or decrease the length of
the Trail.
(D) Notice.--The Secretary shall provide information to the
public with respect to any routes on the Trail that are
closed under subparagraph (B), including through the
provision of appropriate signage along the Trail.
(4) Notice of open routes.--The Secretary shall ensure that
visitors to the Trail have access to adequate notice relating
to the routes on the Trail that are open through--
(A) the provision of appropriate signage along the Trail;
and
(B) the distribution of maps, safety education materials,
and any other information that the Secretary determines to be
appropriate.
(d) No Effect on Non-Federal Land and Interests in Land.--
Nothing in this section affects the ownership or management
of, or other rights relating to, non-Federal land or
interests in non-Federal land.
Subtitle F--Transfer of Land to Be Held in Trust for the Ely Shoshone
Tribe.
SEC. 361. TRANSFER OF LAND TO BE HELD IN TRUST FOR THE ELY
SHOSHONE TRIBE.
(a) In General.--Subject to valid existing rights, all
right, title, and interest of the United States in and to the
land described in subsection (b)--
(1) shall be held in trust by the United States for the
benefit of the Ely Shoshone Tribe (referred to in this
section as the ``Tribe''); and
(2) shall be part of the reservation of the Tribe.
(b) Description of Land.--The land referred to in
subsection (a) consists of parcels 1, 2, 3, and 4, totaling
the approximately 3,526 acres of land that are identified
on--
(1) the Ely, Nevada Area map dated November 29, 2006; and
(2) the Eastern White Pine County map dated November 29,
2006, as the ``Ely Shoshone Expansion''.
(c) Survey.--Not later than 180 days after the date of
enactment of this Act, the Bureau of Land Management shall
complete a survey of the boundary lines to establish the
boundaries of the trust land.
(d) Conditions.--
(1) Gaming.--Land taken into trust under subsection (a)
shall not be--
(A) considered to have been taken into trust for gaming (as
that term is used in the Indian Gaming Regulatory Act (25
U.S.C. 2701 et seq.)); and
(B) used for gaming.
(2) Trust land for ceremonial use.--With respect to the use
of the land identified on the map as ``Ely Shoshone
Expansion'' and marked as ``3'', the Tribe--
(A) shall limit the use of the surface of the land to
traditional and customary uses and stewardship conservation
for the benefit of the Tribe; and
(B) shall not permit any permanent residential or
recreational development on, or commercial use of, the
surface of the land, including commercial development or
gaming.
(3) Thinning; landscape restoration.--With respect to land
taken into trust under subsection (a), the Forest Service and
the Bureau of Land Management may, in consultation and
coordination with the Tribe, carry out any thinning and other
landscape restoration work on the trust land that is
beneficial to the Tribe and the Forest Service or the Bureau
of Land Management.
Subtitle G--Eastern Nevada Landscape Restoration Project.
SEC. 371. FINDINGS; PURPOSES.
(a) Findings.--Congress finds that--
(1) there is an increasing threat of wildfire in the Great
Basin;
(2) those wildfires--
(A) endanger homes and communities;
(B) damage or destroy watersheds and soils; and
(C) pose a serious threat to the habitat of threatened and
endangered species;
(3) forest land and rangeland in the Great Basin are
degraded as a direct consequence of land management practices
(including practices to control and prevent wildfires) that
disrupt the occurrence of frequent low-intensity fires that
have periodically removed flammable undergrowth; and
(4) additional scientific information is needed in the
Great Basin for--
(A) the design, implementation, and adaptation of
landscape-scale restoration treatments; and
(B) the improvement of wildfire management technology and
practices.
(b) Purposes.--The purposes of this subtitle are to--
(1) support the Great Basin Restoration Initiative through
the implementation of the Eastern Nevada Landscape
Restoration Project; and
(2) ensure resilient and healthy ecosystems in the Great
Basin by restoring native plant communities and natural
mosaics on the landscape that function within the parameters
of natural fire regimes.
SEC. 372. DEFINITIONS.
In this subtitle:
(1) Initiative.--The term ``Initiative'' means the Great
Basin Restoration Initiative.
(2) Project.--The term ``Project'' means the Eastern Nevada
Landscape Restoration Project authorized under section
_73(a).
(3) Secretaries.--The term ``Secretaries'' means the
Secretary of Agriculture and the Secretary of the Interior.
(4) State.--The term ``State'' means the State of Nevada.
SEC. 373. RESTORATION PROJECT.
(a) In General.--In accordance with all applicable Federal
laws, the Secretaries shall carry out the Eastern Nevada
Landscape Restoration Project to--
(1) implement the Initiative; and
(2) restore native rangelands and native woodland
(including riparian and aspen communities) in White Pine and
Lincoln Counties in the State.
(b) Grants; Cooperative Agreement.--In carrying out the
Project--
(1) the Secretaries may make grants to the Eastern Nevada
Landscape Coalition, the Great Basin Institute, and other
entities for the study and restoration of rangeland and other
land in the Great Basin--
(A) to assist in--
(i) reducing hazardous fuels; and
(ii) restoring native rangeland and woodland; and
(B) for other related purposes; and
(2) notwithstanding sections 6301 through 6308, of title
31, United States Code, the Director of the Bureau of Land
Management and the Chief of the Forest Service may enter into
an agreement with the Eastern Nevada Landscape Coalition, the
Great Basin Institute, and other entities to provide for the
conduct of scientific analyses, hazardous fuels and
mechanical treatments, and related work.
(c) Research Facility.--The Secretaries may conduct a
feasibility study on the potential establishment of an
interagency science center, including a research facility and
experimental rangeland in the eastern portion of the State.
(d) Funding.--Section 4(e)(3)(A) of the Southern Nevada
Public Land Management Act of 1998 (Public Law 105-263; 112
Stat. 2346; 116 Stat. 2007; 118 Stat. 2414) is amended--
(1) by redesignating clause (viii) as clause (ix); and
(2) by inserting after clause (vii) the following:
``(viii) to carry out the Eastern Nevada Landscape
Restoration Project in White Pine County, Nevada and Lincoln
County, Nevada; and''.
Subtitle H--Amendments to the Southern Nevada Public Land Management
Act of 1998
SEC. 381. FINDINGS.
Section 2(a)(3) of the Southern Nevada Public Land
Management Act of 1998 (Public Law 105-263; 112 Stat. 2343)
is amended by inserting ``the Sloan Canyon National
Conservation Area,'' before ``and the Spring Mountains''.
SEC. 382. AVAILABILITY OF SPECIAL ACCOUNT.
Section 4(e) of the Southern Nevada Public Land Management
Act of 1998 (Public Law 105-263; 112 Stat. 2346; 116 Stat.
2007; 117 Stat. 1317; 118 Stat. 2414) is amended--
[[Page H9056]]
(1) in paragraph (3)--
(A) in subparagraph (A)--
(i) by striking ``may be expended'' and inserting ``shall
be expended'';
(ii) in clause (ii)--
(I) by inserting ``, the Great Basin National Park,'' after
``the Red Rock Canyon National Conservation Area'';
(II) by inserting ``and the Forest Service'' after ``the
Bureau of Land Management''; and
(III) by striking ``Clark and Lincoln Counties'' and
inserting ``Clark, Lincoln, and White Pine Counties'';
(iii) in clause (iii), by inserting ``and implementation''
before ``of a multispecies habitat'';
(iv) in clause (iv), by striking ``Clark and Lincoln
Counties,'' and inserting ``Clark, Lincoln, and White Pine
Counties and Washoe County (subject to paragraph (4)),'';
(v) in clause (v), by striking ``Clark and Lincoln
Counties'' and inserting ``Clark, Lincoln, and White Pine
Counties'';
(vi) in clause (vii)--
(I) by striking ``for development'' and inserting
``development''; and
(II) by striking ``and'' at the end;
(vii) by redesignating clauses (viii) and (ix) (as amended
by section _73(d)) as clauses (x) and (xi), respectively; and
(viii) by inserting after clause (vii) the following:
``(viii) reimbursement of any costs incurred by the Bureau
of Land Management to clear debris from and protect land that
is--
``(I) located in the disposal boundary described in
subsection (a); and
``(II) reserved for affordable housing;
``(ix) development and implementation of comprehensive,
cost-effective, multijurisdictional hazardous fuels reduction
and wildfire prevention plans (including sustainable biomass
and biofuels energy development and production activities)
for the Lake Tahoe Basin (to be developed in conjunction with
the Tahoe Regional Planning Agency), the Carson Range in
Douglas and Washoe Counties and Carson City in the State, and
the Spring Mountains in the State, that are--
``(I) subject to approval by the Secretary; and
``(II) not more than 10 years in duration;''; and
(B) by inserting after subparagraph (C) the following:
``(D) Transfer requirement.--Subject to such terms and
conditions as the Secretary may prescribe, and
notwithstanding any other provision of law--
``(i) for amounts that have been authorized for expenditure
under subparagraph (A)(iv) but not transferred as of the date
of enactment of this subparagraph, the Secretary shall, not
later than 60 days after a request for funds from the
applicable unit of local government or regional governmental
entity, transfer to the applicable unit of local government
or regional governmental entity the amount authorized for the
expenditure; and
``(ii) for expenditures authorized under subparagraph
(A)(iv) that are approved by the Secretary, the Secretary
shall, not later than 60 days after a request for funds from
the applicable unit of local government or regional
governmental entity, transfer to the applicable unit of local
government or regional governmental entity the amount
approved for expenditure.''; and
(2) by adding at the end the following:
``(4) Limitation for washoe county.--Until December 31,
2011, Washoe County shall be eligible to nominate for
expenditure amounts to acquire land (not to exceed 250 acres)
and develop 1 regional park and natural area.''.
Subtitle I--Amendments to the Lincoln County Conservation, Recreation,
and Development Act of 2004
SEC. 391. DISPOSITION OF PROCEEDS.
Section 103(b)(2) of the Lincoln County Conservation,
Recreation, and Development Act of 2004 (Public Law 108-424;
118 Stat. 2405) is amended by inserting ``education,
planning,'' after ``social services,''.
Subtitle J--All American Canal Projects
SEC. 395. ALL AMERICAN CANAL LINING PROJECT.
(a) Duties of the Secretary.--Notwithstanding any other
provision of law, upon the date of enactment of this Act, the
Secretary shall, without delay, carry out the All American
Canal Lining Project identified--
(1) as the preferred alternative in the record of decision
for that project, dated July 29, 1994; and
(2) in the allocation agreement allocating water from the
All American Canal Lining Project, entered into as of October
10, 2003.
(b) Duties of Commissioner of Reclamation.--
(1) In general.--Subject to paragraph (2), if a State
conducts a review or study of the implications of the All
American Canal Lining Project as carried out under subsection
(a), upon request from the Governor of the State, the
Commissioner of Reclamation shall cooperate with the State,
to the extent practicable, in carrying out the review or
study.
(2) Restriction of delay.--A review or study conducted by a
State under paragraph (1) shall not delay the carrying out by
the Secretary of the All American Canal Lining Project.
SEC. 396. REGULATED STORAGE WATER FACILITY.
(a) Construction, Operation, and Maintenance of Facility.--
Notwithstanding any other provision of law, upon the date of
enactment of this Act, the Secretary shall, without delay,
pursuant to the Act of January 1, 1927 (44 Stat. 1010,
chapter 47) (commonly known as the ``River and Harbor Act of
1927''), as amended, design and provide for the construction,
operation, and maintenance of a regulated water storage
facility (including all incidental works that are reasonably
necessary to operate the storage facility) to provide
additional storage capacity to reduce nonstorable flows on
the Colorado River below Parker Dam.
(b) Location of Facility.--The storage facility (including
all incidental works) described in subsection (a) shall be
located at or near the All American Canal.
SEC. 397. APPLICATION OF LAW.
The Treaty between the United States of America and Mexico
relating to the utilization of waters of the Colorado and
Tijuana Rivers and of the Rio Grande, and supplementary
protocol signed November 14, 1944, signed at Washington
February 3, 1944 (59 Stat. 1219) is the exclusive authority
for identifying, considering, analyzing, or addressing
impacts occurring outside the boundary of the United States
of works constructed, acquired, or used within the
territorial limits of the United States.
TITLE IV--OTHER PROVISIONS
SEC. 401. TOBACCO PERSONAL USE QUANTITY EXCEPTION TO NOT
APPLY TO DELIVERY SALES.
(a) Definitions.--Section 801 of the Tariff Act of 1930 (19
U.S.C. 1681) is amended by adding at the end the following:
``(3) Delivery sale.--The term `delivery sale' means any
sale of cigarettes or a smokeless tobacco product to a
consumer if--
``(A) the consumer submits the order for such sale by means
of a telephone or other method of voice transmission, the
mail, or the Internet or other online service, or the seller
is otherwise not in the physical presence of the buyer when
the request for purchase or order is made; or
``(B) the cigarettes or smokeless tobacco product is
delivered by use of a common carrier, private delivery
service, or the mail, or the seller is not in the physical
presence of the buyer when the buyer obtains personal
possession of the delivered cigarettes or smokeless tobacco
product.''.
(b) Inapplicability of Exemptions From Requirements for
Entry of Certain Cigarettes and Smokeless Tobacco Products.--
Section 802(b)(1) of the Tariff Act of 1930 (19 U.S.C.
1681a(b)(1)) is amended by adding at the end the following
new sentence: ``The preceding sentence shall not apply to any
cigarettes or smokeless tobacco products sold in connection
with a delivery sale.''.
(c) State Access to Customs Certifications.--Section 802 of
the Tariff Act of 1930 (19 U.S.C. 1681a) is amended by adding
at the end the following new subsection:
``(d) State Access to Customs Certifications.--A State,
through its Attorney General, shall be entitled to obtain
copies of any certification required under subsection (c)
directly--
``(1) upon request to the agency of the United States
responsible for collecting such certification; or
``(2) upon request to the importer, manufacturer, or
authorized official of such importer or manufacturer.''.
(d) Enforcement Provisions.--Section 803(b) of the Tariff
Act of 1930 (19 U.S.C. 1681b(b)) is amended--
(1) in the first sentence, by inserting before the period
at the end the following: ``, or to any State in which such
tobacco product, cigarette papers, or tube is found''; and
(2) in the second sentence, by inserting ``, or to any
State,'' after ``the United States''.
(e) Inclusion of Smokeless Tobacco.--
(1) Sections 802 and 803(a) of the Tariff Act of 1930 (19
U.S.C. 1681a and 1681b(a)) (other than the last sentence of
section 802(b)(1), as added by subsection (b) of this
section) are further amended by inserting ``or smokeless
tobacco products'' after ``cigarettes'' each place it
appears.
(2) Section 802 of such Act is further amended--
(A) in subsection (a)--
(i) in paragraph (1), by inserting ``or section 4 of the
Comprehensive Smokeless Tobacco Health Education Act of 1986
(15 U.S.C. 4403), as the case may be'' after ``section 7 of
the Federal Cigarette Labeling and Advertising Act (15 U.S.C.
1335a)'';
(ii) in paragraph (2), by inserting ``or section 3 of the
Comprehensive Smokeless Tobacco Health Education Act of 1986
(15 U.S.C. 4402), as the case may be,'' after ``section 4 of
the Federal Cigarette Labeling and Advertising Act (15 U.S.C.
1333)''; and
(iii) in paragraph (3), by inserting ``or section 3(d) of
the Comprehensive Smokeless Tobacco Health Education Act of
1986 (15 U.S.C. 4402(d)), as the case may be'' after
``section 4(c) of the Federal Cigarette Labeling and
Advertising Act (15 U.S.C. 1333(c))'';
(B) in subsection (b)--
(i) in the heading of paragraph (1), by inserting ``or
smokeless tobacco products'' after ``cigarettes''; and
(ii) in the heading of paragraphs (2) and (3), by inserting
``or smokeless tobacco products'' after ``cigarettes''; and
(C) in subsection (c)--
(i) in the heading, by inserting ``or smokeless tobacco
product'' after ``cigarette'';
(ii) in paragraph (1), by inserting ``or section 4 of the
Comprehensive Smokeless Tobacco Health Education Act of 1986
(15 U.S.C.
[[Page H9057]]
4403), as the case may be'' after ``section 7 of the Federal
Cigarette Labeling and Advertising Act (15 U.S.C. 1335a)'';
(iii) in paragraph (2)(A), by inserting ``or section 3 of
the Comprehensive Smokeless Tobacco Health Education Act of
1986 (15 U.S.C. 4402), as the case may be,'' after ``section
4 of the Federal Cigarette Labeling and Advertising Act (15
U.S.C. 1333)''; and
(iv) in paragraph (2)(B), by inserting ``or section 3(d) of
the Comprehensive Smokeless Tobacco Health Education Act of
1986 (15 U.S.C. 4402(d)), as the case may be'' after
``section 4(c) of the Federal Cigarette Labeling and
Advertising Act (15 U.S.C. 1333(c))''.
(3) Section 803(b) of such Act, as amended by subsection
(d)(1) of this section, is further amended by inserting ``,
or any smokeless tobacco product,'' after ``or tube'' the
first place it appears.
(4)(A) The heading of title VIII of such Act is amended by
inserting ``AND SMOKELESS TOBACCO PRODUCTS'' after
``CIGARETTES''.
(B) The heading of section 802 of such Act is amended by
inserting ``AND SMOKELESS TOBACCO PRODUCTS'' after
``CIGARETTES''.
(f) Application of Civil Penalties to Relandings of Tobacco
Products Sold in a Delivery Sale.--
(1) In general.--Section 5761 of the Internal Revenue Code
of 1986 (relating to civil penalties) is amended by
redesignating subsections (d) and (e) as subsections (e) and
(f), respectively, and inserting after subsection (c) the
following new subsection:
``(d) Personal Use Quantities.--
``(1) In general.--No quantity of tobacco products other
than the quantity referred to in paragraph (2) may be
relanded or received as a personal use quantity.
``(2) Exception for personal use quantity.--Subsection (c)
and section 5754 shall not apply to any person who relands or
receives tobacco products in the quantity allowed entry free
of tax and duty under chapter 98 of the Harmonized Tariff
Schedule of the United States, and such person may
voluntarily relinquish to the Secretary at the time of entry
any excess of such quantity without incurring the penalty
under subsection (c).
``(3) Special rule for delivery sales.--
``(A) In general.--Paragraph (2) shall not apply to any
tobacco product sold in connection with a delivery sale.
``(B) Delivery sale.--For purposes of subparagraph (A), the
term `delivery sale' means any sale of a tobacco product to a
consumer if--
``(i) the consumer submits the order for such sale by means
of a telephone or other method of voice transmission, the
mail, or the Internet or other online service, or the seller
is otherwise not in the physical presence of the buyer when
the request for purchase or order is made, or
``(ii) the tobacco product is delivered by use of a common
carrier, private delivery service, or the mail, or the seller
is not in the physical presence of the buyer when the buyer
obtains personal possession of the tobacco product.''.
(2) Conforming amendments.--
(A) Subsection (c) of section 5761 of such Code is amended
by striking the last two sentences.
(B) Paragraph (1) of section 5754(c) of such Code is
amended by striking ``section 5761(c)'' and inserting
``section 5761(d)''.
(g) Effective Date.--The amendments made by this section
shall apply with respect to goods entered, or withdrawn from
warehouse for consumption, on or after the 15th day after the
date of the enactment of this Act.
SEC. 402. ETHANOL TARIFF SCHEDULE.
Headings 9901.00.50 and 9901.00.52 of the Harmonized Tariff
Schedule of the United States are each amended in the
effective period column by striking ``10/1/2007'' each place
it appears and inserting ``1/1/2009''.
SEC. 403. WITHDRAWAL OF CERTAIN FEDERAL LAND AND INTERESTS IN
CERTAIN FEDERAL LAND FROM LOCATION, ENTRY, AND
PATENT UNDER THE MINING LAWS AND DISPOSITION
UNDER THE MINERAL AND GEOTHERMAL LEASING LAWS.
(a) Definitions.--In this section:
(1) Bureau of land management land.--The term ``Bureau of
Land Management land'' means the Bureau of Land Management
land and any federally-owned minerals located south of the
Blackfeet Indian Reservation and east of the Lewis and Clark
National Forest to the eastern edge of R. 8 W., beginning in
T. 29 N. down to and including T. 19 N. and all of T. 18 N.,
R. 7 W.
(2) Eligible federal land.--The term ``eligible Federal
land'' means the Bureau of Land Management land and the
Forest Service land, as generally depicted on the map.
(3) Forest service land.--The term ``Forest Service land''
means--
(A) the Forest Service land and any federally-owned
minerals located in the Rocky Mountain Division of the Lewis
and Clark National Forest, including the approximately
356,111 acres of land made unavailable for leasing by the
August 28, 1997, Record of Decision for the Lewis and Clark
National Forest Oil and Gas Leasing Environmental Impact
Statement and that is located from T. 31 N. to T. 16 N. and
R. 13 W. to R. 7 W.; and
(B) the Forest Service land and any federally-owned
minerals located within the Badger Two Medicine area of the
Flathead National Forest, including--
(i) the land located in T. 29 N. from the western edge of
R. 16 W. to the eastern edge of R. 13 W.; and
(ii) the land located in T. 28 N., Rs. 13 and 14 W.
(4) Map.--The term ``map'' means the map entitled ``Rocky
Mountain Front Mineral Withdrawal Area'' and dated December
31, 2006.
(b) Withdrawal.--
(1) In general.--Subject to valid existing rights, the
eligible Federal land (including any interest in the eligible
Federal land) is withdrawn from--
(A) all forms of location, entry, and patent under the
mining laws; and
(B) disposition under all laws relating to mineral and
geothermal leasing.
(2) Availability of map.--The map shall be on file and
available for inspection in the Office of the Chief of the
Forest Service.
(c) Tax Incentive for Sale of Existing Mineral and
Geothermal Rights to Tax-Exempt Entities.--
(1) Exclusion.--For purposes of the Internal Revenue Code
of 1986, gross income shall not include 25 percent of the
qualifying gain from a conservation sale of a qualifying
mineral or geothermal interest.
(2) Qualifying gain.--For purposes of this subsection, the
term ``qualifying gain'' means any gain which would be
recognized as long-term capital gain under such Code.
(3) Conservation sale.--For purposes of this subsection,
the term ``conservation sale'' means a sale which meets the
following requirements:
(A) Transferee is an eligible entity.--The transferee of
the qualifying mineral or geothermal interest is an eligible
entity.
(B) Qualifying letter of intent required.--At the time of
the sale, such transferee provides the taxpayer with a
qualifying letter of intent.
(C) Nonapplication to certain sales.--The sale is not made
pursuant to an order of condemnation or eminent domain.
(4) Qualifying mineral or geothermal interest.--For
purposes of this subsection--
(A) In general.--The term ``qualifying mineral or
geothermal interest'' means an interest in any mineral or
geothermal deposit located on eligible Federal land which
constitutes a taxpayer's entire interest in such deposit.
(B) Entire interest.--For purposes of subparagraph (A)--
(i) an interest in any mineral or geothermal deposit is not
a taxpayer's entire interest if such interest in such mineral
or geothermal deposit was divided in order to avoid the
requirements of such subparagraph or section 170(f)(3)(A) of
such Code, and
(ii) a taxpayer's entire interest in such deposit does not
fail to satisfy such subparagraph solely because the taxpayer
has retained an interest in other deposits, even if the other
deposits are contiguous with such certain deposit and were
acquired by the taxpayer along with such certain deposit in a
single conveyance.
(5) Other definitions.--For purposes of this subsection--
(A) Eligible entity.--The term ``eligible entity'' means--
(i) a governmental unit referred to in section 170(c)(1) of
such Code, or an agency or department thereof operated
primarily for 1 or more of the conservation purposes
specified in clause (i), (ii), or (iii) of section
170(h)(4)(A) of such Code, or
(ii) an entity which is--
(I) described in section 170(b)(1)(A)(vi) or section
170(h)(3)(B) of such Code, and
(II) organized and at all times operated primarily for 1 or
more of the conservation purposes specified in clause (i),
(ii), or (iii) of section 170(h)(4)(A) of such Code.
(B) Qualifying letter of intent.--The term ``qualifying
letter of intent'' means a written letter of intent which
includes the following statement: ``The transferee's intent
is that this acquisition will serve 1 or more of the
conservation purposes specified in clause (i), (ii), or (iii)
of section 170(h)(4)(A) of the Internal Revenue Code of 1986,
that the transferee's use of the deposits so acquired will be
consistent with section 170(h)(5) of such Code, and that the
use of the deposits will continue to be consistent with such
section, even if ownership or possession of such deposits is
subsequently transferred to another person.''.
(6) Tax on subsequent transfers.--
(A) In general.--A tax is hereby imposed on any subsequent
transfer by an eligible entity of ownership or possession,
whether by sale, exchange, or lease, of an interest acquired
directly or indirectly in--
(i) a conservation sale described in paragraph (1), or
(ii) a transfer described in clause (i), (ii), or (iii) of
subparagraph (D).
(B) Amount of tax.--The amount of tax imposed by
subparagraph (A) on any transfer shall be equal to the sum
of--
(i) 20 percent of the fair market value (determined at the
time of the transfer) of the interest the ownership or
possession of which is transferred, plus
(ii) the product of--
(I) the highest rate of tax specified in section 11 of such
Code, times
(II) any gain or income realized by the transferor as a
result of the transfer.
(C) Liability.--The tax imposed by subparagraph (A) shall
be paid by the transferor.
(D) Relief from liability.--The person (otherwise liable
for any tax imposed by subparagraph (A)) shall be relieved of
liability for the tax imposed by subparagraph (A) with
respect to any transfer if--
[[Page H9058]]
(i) the transferee is an eligible entity which provides
such person, at the time of transfer, a qualifying letter of
intent,
(ii) in any case where the transferee is not an eligible
entity, it is established to the satisfaction of the
Secretary of the Treasury, that the transfer of ownership or
possession, as the case may be, will be consistent with
section 170(h)(5) of such Code, and the transferee provides
such person, at the time of transfer, a qualifying letter of
intent, or
(iii) tax has previously been paid under this paragraph as
a result of a prior transfer of ownership or possession of
the same interest.
(E) Administrative provisions.--For purposes of subtitle F
of such Code, the taxes imposed by this paragraph shall be
treated as excise taxes with respect to which the deficiency
procedures of such subtitle apply.
(7) Reporting.--The Secretary of the Treasury may require
such reporting as may be necessary or appropriate to further
the purpose under this subsection that any conservation use
be in perpetuity.
(d) Effective Dates.--
(1) Moratorium.--Subsection (b) shall take effect on the
date of the enactment of this Act.
(2) Tax incentive.--Subsection (c) shall apply to sales
occurring on or after the date of the enactment of this Act.
SEC. 404. CONTINUING ELIGIBILITY FOR CERTAIN STUDENTS UNDER
DISTRICT OF COLUMBIA SCHOOL CHOICE PROGRAM.
(a) In General.--Section 307(a)(4) of the DC School Choice
Incentive Act of 2003 (sec. 38--1851.06(a)(4), D.C. Official
Code) is amended by striking ``200 percent'' and inserting
the following: ``200 percent (or, in the case of an eligible
student whose first year of participation in the program is
an academic year ending in June 2005 or June 2006 and whose
second or succeeding year is an academic year ending on or
before June 2009, 300 percent)''.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect as if included in the enactment of the DC
School Choice Incentive Act of 2003.
SEC. 405. STUDY ON ESTABLISHING UNIFORM NATIONAL DATABASE ON
ELDER ABUSE.
(a) Study.--
(1) In general.--The Secretary of Health and Human
Services, in consultation with the Attorney General, shall
conduct a study on establishing a uniform national database
on elder abuse.
(2) Issues studied.--The study conducted under paragraph
(1) may consider the following:
(A) Current methodologies used for collecting data on elder
abuse, including a determination of the shortcomings,
strengths, and commonalities of existing data collection
efforts and reporting forms, and how a uniform national
database would capitalize on such efforts.
(B) The process by which uniform national standards for
reporting on elder abuse could be implemented, including the
identification and involvement of necessary stakeholders,
financial resources needed, timelines, and the treatment of
existing standards with respect to elder abuse.
(C) Potential conflicts in Federal, State, and local laws,
and enforcement and jurisdictional issues that could occur as
a result of the creation of a uniform national database on
elder abuse.
(D) The scope, purpose, and variability of existing
definitions used by Federal, State, and local agencies with
respect to elder abuse.
(3) Duration.--The study conducted under paragraph (1)
shall be conducted for a period not to exceed 2 years.
(b) Report.--Not later than 180 days after the completion
of the study conducted under subsection (a)(1), the Secretary
of Health and Human Services shall submit a report to the
Committee on Finance of the Senate and the Committee on Ways
and Means of the House of Representatives containing the
findings of the study, together with recommendations on how
to implement a uniform national database on elder abuse.
(c) Authorization.--There are authorized to be appropriated
to carry out this section, $500,000 for each of fiscal years
2007 and 2008.
SEC. 406. TEMPORARY DUTY REDUCTIONS FOR CERTAIN COTTON
SHIRTING FABRIC.
(a) Certain Cotton Shirting Fabrics.--
(1) In general.--Subchapter II of chapter 99 of the
Harmonized Tariff Schedule of the United States is amended by
inserting in numerical sequence the following new headings:
131 9902.52.08 Woven fabrics of Free No change No change On or before 12/31/2009 ..
cotton, of a
type described
in subheading
5208.21, of
average yarn
number
exceeding 135
metric, other
than fabrics
provided for in
headings
9902.52.20
through
9902.52.31,
certified by
the importer to
be suitable for
use in men's
and boys'
shirts, the
foregoing
imported by or
for the benefit
of a
manufacturer of
men's and boys'
shirts under
the terms of
U.S. Notes 18
and 19 of this
subchapter.....
9902.52.09 Woven fabrics of Free No change No change On or before 12/31/2009 ..
cotton, of a
type described
in subheading
5208.22, of
average yarn
number
exceeding 135
metric, other
than fabrics
provided for in
headings
9902.52.20
through
9902.52.31,
certified by
the importer to
be suitable for
use in men's
and boys'
shirts, the
foregoing
imported by or
for the benefit
of a
manufacturer of
men's and boys'
shirts under
the terms of
U.S. Notes 18
and 19 of this
subchapter.....
9902.52.10 Woven fabrics of Free No change No change On or before 12/31/2009 ..
cotton, of a
type described
in subheading
5208.29, of
average yarn
number
exceeding 135
metric, other
than fabrics
provided for in
headings
9902.52.20
through
9902.52.31,
certified by
the importer to
be suitable for
use in men's
and boys'
shirts, the
foregoing
imported by or
for the benefit
of a
manufacturer of
men's and boys'
shirts under
the terms of
U.S. Notes 18
and 19 of this
subchapter.....
9902.52.11 Woven fabrics of Free No change No change On or before 12/31/2009 ..
cotton, of a
type described
in subheading
5208.31, of
average yarn
number
exceeding 135
metric, other
than fabrics
provided for in
headings
9902.52.20
through
9902.52.31,
certified by
the importer to
be suitable for
use in men's
and boys'
shirts, the
foregoing
imported by or
for the benefit
of a
manufacturer of
men's and boys'
shirts under
the terms of
U.S. Notes 18
and 19 of this
subchapter.....
9902.52.12 Woven fabrics of Free No change No change On or before 12/31/2009 ..
cotton, of a
type described
in subheading
5208.32, of
average yarn
number
exceeding 135
metric, other
than fabrics
provided for in
headings
9902.52.20
through
9902.52.31,
certified by
the importer to
be suitable for
use in men's
and boys'
shirts, the
foregoing
imported by or
for the benefit
of a
manufacturer of
men's and boys'
shirts under
the terms of
U.S. Notes 18
and 19 of this
subchapter.....
9902.52.13 Woven fabrics of Free No change No change On or before 12/31/2009 ..
cotton, of a
type described
in subheading
5208.39, of
average yarn
number
exceeding 135
metric, other
than fabrics
provided for in
headings
9902.52.20
through
9902.52.31,
certified by
the importer to
be suitable for
use in men's
and boys'
shirts, the
foregoing
imported by or
for the benefit
of a
manufacturer of
men's and boys'
shirts under
the terms of
U.S. Notes 18
and 19 of this
subchapter.....
9902.52.14 Woven fabrics of Free No change No change On or before 12/31/2009 ..
cotton, of a
type described
in subheading
5208.41, of
average yarn
number
exceeding 135
metric, other
than fabrics
provided for in
headings
9902.52.20
through
9902.52.31,
certified by
the importer to
be suitable for
use in men's
and boys'
shirts, the
foregoing
imported by or
for the benefit
of a
manufacturer of
men's and boys'
shirts under
the terms of
U.S. Notes 18
and 19 of this
subchapter.....
9902.52.15 Woven fabrics of Free No change No change On or before 12/31/2009 ..
cotton, of a
type described
in subheading
5208.42, of
average yarn
number
exceeding 135
metric, other
than fabrics
provided for in
headings
9902.52.20
through
9902.52.31,
certified by
the importer to
be suitable for
use in men's
and boys'
shirts, the
foregoing
imported by or
for the benefit
of a
manufacturer of
men's and boys'
shirts under
the terms of
U.S. Notes 18
and 19 of this
subchapter.....
9902.52.16 Woven fabrics of Free No change No change On or before 12/31/2009 ..
cotton, of a
type described
in subheading
5208.49, of
average yarn
number
exceeding 135
metric, other
than fabrics
provided for in
headings
9902.52.20
through
9902.52.31,
certified by
the importer to
be suitable for
use in men's
and boys'
shirts, the
foregoing
imported by or
for the benefit
of a
manufacturer of
men's and boys'
shirts under
the terms of
U.S. Notes 18
and 19 of this
subchapter.....
[[Page H9059]]
9902.52.17 Woven fabrics of Free No change No change On or before 12/31/2009 ..
cotton, of a
type described
in subheading
5208.51, of
average yarn
number
exceeding 135
metric, other
than fabrics
provided for in
headings
9902.52.20
through
9902.52.31,
certified by
the importer to
be suitable for
use in men's
and boys'
shirts, the
foregoing
imported by or
for the benefit
of a
manufacturer of
men's and boys'
shirts under
the terms of
U.S. Notes 18
and 19 of this
subchapter.....
9902.52.18 Woven fabrics of Free No change No change On or before 12/31/2009 ..
cotton, of a
type described
in subheading
5208.52, of
average yarn
number
exceeding 135
metric, other
than fabrics
provided for in
headings
9902.52.20
through
9902.52.31,
certified by
the importer to
be suitable for
use in men's
and boys'
shirts, the
foregoing
imported by or
for the benefit
of a
manufacturer of
men's and boys'
shirts under
the terms of
U.S. Notes 18
and 19 of this
subchapter.....
9902.52.19 Woven fabrics of Free No change No change On or before 12/31/2009 ..
cotton, of a
type described
in subheading
5208.59, of
average yarn
number
exceeding 135
metric, other
than fabrics
provided for in
headings
9902.52.20
through
9902.52.31,
certified by
the importer to
be suitable for
use in men's
and boys'
shirts, the
foregoing
imported by or
for the benefit
of a
manufacturer of
men's and boys'
shirts under
the terms of
U.S. Notes 18
and 19 of this
subchapter.....
9902.52.20 Woven fabrics of Free No change No change On or before 12/31/2009 ..
cotton of a
type described
in subheading
5208.21, of
average yarn
number
exceeding 135
metric,
certified by
the importer to
be wholly of
pima cotton
grown in the
United States
and to be
suitable for
use in men's
and boys'
shirts, the
foregoing
imported by or
for the benefit
of a
manufacturer of
men's and boys'
shirts under
the terms of
U.S. Note 18 of
this
subchapter.....
9902.52.21 Woven fabrics of Free No change No change On or before 12/31/2009 ..
cotton of a
type described
in subheading
5208.22, of
average yarn
number
exceeding 135
metric,
certified by
the importer to
be wholly of
pima cotton
grown in the
United States
and to be
suitable for
use in men's
and boys'
shirts, the
foregoing
imported by or
for the benefit
of a
manufacturer of
men's and boys'
shirts under
the terms of
U.S. Note 18 of
this
subchapter.....
9902.52.22 Woven fabrics of Free No change No change On or before 12/31/2009 ..
cotton of a
type described
in subheading
5208.29, of
average yarn
number
exceeding 135
metric,
certified by
the importer to
be wholly of
pima cotton
grown in the
United States
and to be
suitable for
use in men's
and boys'
shirts, the
foregoing
imported by or
for the benefit
of a
manufacturer of
men's and boys'
shirts under
the terms of
U.S. Note 18 of
this
subchapter.....
9902.52.23 Woven fabrics of Free No change No change On or before 12/31/2009 ..
cotton of a
type described
in subheading
5208.31, of
average yarn
number
exceeding 135
metric,
certified by
the importer to
be wholly of
pima cotton
grown in the
United States
and to be
suitable for
use in men's
and boys'
shirts, the
foregoing
imported by or
for the benefit
of a
manufacturer of
men's and boys'
shirts under
the terms of
U.S. Note 18 of
this
subchapter.....
9902.52.24 Woven fabrics of Free No change No change On or before 12/31/2009 ..
cotton of a
type described
in subheading
5208.32, of
average yarn
number
exceeding 135
metric,
certified by
the importer to
be wholly of
pima cotton
grown in the
United States
and to be
suitable for
use in men's
and boys'
shirts, the
foregoing
imported by or
for the benefit
of a
manufacturer of
men's and boys'
shirts under
the terms of
U.S. Note 18 of
this
subchapter.....
9902.52.25 Woven fabrics of Free No change No change On or before 12/31/2009 ..
cotton of a
type described
in subheading
5208.39, of
average yarn
number
exceeding 135
metric,
certified by
the importer to
be wholly of
pima cotton
grown in the
United States
and to be
suitable for
use in men's
and boys'
shirts, the
foregoing
imported by or
for the benefit
of a
manufacturer of
men's and boys'
shirts under
the terms of
U.S. Note 18 of
this
subchapter.....
9902.52.26 Woven fabrics of Free No change No change On or before 12/31/2009 ..
cotton of a
type described
in subheading
5208.41, of
average yarn
number
exceeding 135
metric,
certified by
the importer to
be wholly of
pima cotton
grown in the
United States
and to be
suitable for
use in men's
and boys'
shirts, the
foregoing
imported by or
for the benefit
of a
manufacturer of
men's and boys'
shirts under
the terms of
U.S. Note 18 of
this
subchapter.....
9902.52.27 Woven fabrics of Free No change No change On or before 12/31/2009 ..
cotton of a
type described
in subheading
5208.42, of
average yarn
number
exceeding 135
metric,
certified by
the importer to
be wholly of
pima cotton
grown in the
United States
and to be
suitable for
use in men's
and boys'
shirts, the
foregoing
imported by or
for the benefit
of a
manufacturer of
men's and boys'
shirts under
the terms of
U.S. Note 18 of
this
subchapter.....
9902.52.28 Woven fabrics of Free No change No change On or before 12/31/2009 ..
cotton of a
type described
in subheading
5208.49, of
average yarn
number
exceeding 135
metric,
certified by
the importer to
be wholly of
pima cotton
grown in the
United States
and to be
suitable for
use in men's
and boys'
shirts, the
foregoing
imported by or
for the benefit
of a
manufacturer of
men's and boys'
shirts under
the terms of
U.S. Note 18 of
this
subchapter.....
9902.52.29 Woven fabrics of Free No change No change On or before 12/31/2009 ..
cotton of a
type described
in subheading
5208.51, of
average yarn
number
exceeding 135
metric,
certified by
the importer to
be wholly of
pima cotton
grown in the
United States
and to be
suitable for
use in men's
and boys'
shirts, the
foregoing
imported by or
for the benefit
of a
manufacturer of
men's and boys'
shirts under
the terms of
U.S. Note 18 of
this
subchapter.....
9902.52.30 Woven fabrics of Free No change No change On or before 12/31/2009 ..
cotton of a
type described
in subheading
5208.52, of
average yarn
number
exceeding 135
metric,
certified by
the importer to
be wholly of
pima cotton
grown in the
United States
and to be
suitable for
use in men's
and boys'
shirts, the
foregoing
imported by or
for the benefit
of a
manufacturer of
men's and boys'
shirts under
the terms of
U.S. Note 18 of
this
subchapter.....
9902.52.31 Woven fabrics of Free No change No change On or before 12/31/2009 ''
cotton of a .
type described
in subheading
5208.59, of
average yarn
number
exceeding 135
metric,
certified by
the importer to
be wholly of
pima cotton
grown in the
United States
and to be
suitable for
use in men's
and boys'
shirts, the
foregoing
imported by or
for the benefit
of a
manufacturer of
men's and boys'
shirts under
the terms of
U.S. Note 18 of
this
subchapter.....
----------------------------------------------------------------------------------------------------------------
(2) Definitions and limitation on quantity of imports.--The
U.S. Notes to subchapter II of chapter 99 of the Harmonized
Tariff Schedule of the United States are amended by adding at
the end the following:
``18. For purposes of headings 9902.52.08 through
9902.52.31, the term `manufacturer' means a person or entity
that cuts and sews men's and boys' shirts in the United
States.
``19. The aggregate quantity of fabrics entered under
headings 9902.52.08 through 9902.52.19 from January 1 to
December 31 of each year, inclusive, by or on behalf of each
manufacturer of men's and boys' shirts shall be limited to 85
percent of the total square meter equivalents of all imported
woven fabrics of cotton containing 85 percent or more
[[Page H9060]]
by weight of cotton used by such manufacturer in cutting and
sewing men's and boys' cotton shirts in the United States and
purchased by such manufacturer during calendar year 2000.''.
(b) Determination of Tariff-Rate Quotas.--
(1) Authority to issue licenses and license use.--In order
to implement the limitation on the quantity of cotton woven
fabrics that may be entered under headings 9902.52.08 through
9902.52.19 of the Harmonized Tariff Schedule of the United
States, as required by U.S. Note 19 to subchapter II of
chapter 99 of such Schedule, the Secretary of Commerce shall
issue licenses to eligible manufacturers under such headings
9902.52.08 through 9902.52.19, specifying the restrictions
under each such license on the quantity of cotton woven
fabrics that may be entered each year by or on behalf of the
manufacturer. A licensee may assign the authority (in whole
or in part) under the license to import fabric under headings
9902.52.08 through 9902.52.19 of such Schedule.
(2) Licenses under u.s. note 19.--For purposes of U.S. Note
19 to subchapter II of chapter 99 of the Harmonized Tariff
Schedule of the United States, the Secretary of Commerce
shall issue a license to a manufacturer within 60 days after
the manufacturer files with the Secretary of Commerce an
application containing a notarized affidavit from an officer
of the manufacturer that the manufacturer is eligible to
receive a license and stating the quantity of imported woven
fabrics of cotton containing 85 percent or more by weight of
cotton purchased during calendar year 2000 for use in the
cutting and sewing men's and boys' shirts in the United
States.
(3) Affidavits.--For purposes of an affidavit described in
this subsection, the date of purchase shall be--
(A) the invoice date if the manufacturer is not the
importer of record; and
(B) the date of entry if the manufacturer is the importer
of record.
SEC. 407. COTTON TRUST FUND.
(a) Establishment of Trust Fund.--There is established in
the Treasury of the United States a trust fund to be known as
the ``Pima Cotton Trust Fund'' (in this section referred to
as the ``Trust Fund''), consisting of such amounts as may be
transferred to the Trust Fund under subsection (b).
(b) Transfer of Amounts.--
(1) In general.--Beginning October 1, 2006, the Secretary
of the Treasury shall transfer to the Trust Fund, from the
general fund of the Treasury, amounts determined by the
Secretary of the Treasury to be equivalent to the amounts
received in the general fund that are attributable to duties
received since January 1, 1994, on articles under subheadings
5208.21.60, 5208.22.80, 5208.29.80, 5208.31.80, 5208.32.50,
5208.39.80, 5208.41.80, 5208.42.50, 5208.49.80, 5208.51.80,
5208.52.50, and 5208.59.80 of the Harmonized Tariff Schedule
of the United States, subject to the limitation in paragraph
(2).
(2) Limitation.--The Secretary may not transfer more than
$16,000,000 to the Trust Fund in any fiscal year, and may not
transfer any amount beginning on or after October 1, 2008.
(c) Distribution of Funds.--From amounts in the Trust Fund,
the Commissioner of the Bureau of Customs and Border
Protection shall make the following payments annually
beginning in fiscal year 2007:
(1) 25 percent of the amounts in the Trust Fund shall be
paid annually to a nationally recognized association
established for the promotion of pima cotton grown in the
United States for the use in textile and apparel goods.
(2) 25 percent of the amounts in the Trust Fund shall be
paid annually to yarn spinners of pima cotton grown in the
United States, and shall be allocated to each spinner in an
amount that bears the same ratio as--
(A) the spinner's production of ring spun cotton yarns,
measuring less than 83.33 decitex (exceeding 120 metric
number) from pima cotton grown in the United States in single
and plied form during the period January 1, 1998 through
December 31, 2003 (as evidenced by an affidavit provided by
the spinner) bears to--
(B) the production of the yarns described in subparagraph
(A) during the period January 1, 1998 through December 31,
2003 for all spinners who qualify under this paragraph.
(3) 50 percent of the amounts in the Trust Fund shall be
paid annually to those manufacturers who cut and sew cotton
shirts in the United States who certify that they used
imported cotton fabric during the period January 1, 1998,
through July 1, 2003, and shall be allocated to each such
manufacturer in an amount that bears the same ratio as--
(A) the dollar value (excluding duty, shipping, and related
costs) of imported woven cotton shirting fabric of 80s or
higher count and 2-ply in warp purchased by the manufacturer
during calendar year 2002 (as evidenced by an affidavit from
the manufacturer that meets the requirements of subsection
(d)) used in the manufacturing of men's and boys' cotton
shirts, bears to--
(B) the dollar value (excluding duty, shipping, and related
costs) of the fabric described in subparagraph (A) purchased
during calendar year 2002 by all manufacturers who qualify
under this paragraph.
(d) Affidavit of Shirting Manufacturers.--The affidavit
required by subsection (c)(3)(A) is a notarized affidavit
provided by an officer of the manufacturer of men's and boys'
shirts concerned that affirms--
(1) that the manufacturer used imported cotton fabric
during the period January 1, 1998, through July 1, 2003, to
cut and sew men's and boys' woven cotton shirts in the United
States;
(2) the dollar value of imported woven cotton shirting
fabric of 80s or higher count and 2-ply in warp purchased
during calendar year 2002;
(3) that the manufacturer maintains invoices along with
other supporting documentation (such as price lists and other
technical descriptions of the fabric qualities) showing the
dollar value of such fabric purchased, the date of purchase,
and evidencing the fabric as woven cotton fabric of 80s or
higher count and 2-ply in warp; and
(4) that the fabric was suitable for use in the
manufacturing of men's and boys' cotton shirts.
(e) Date of Purchase.--For purposes of the affidavit under
subsection (d), the date of purchase shall be the invoice
date, and the dollar value shall be determined excluding
duty, shipping, and related costs.
(f) Affidavit of Yarn Spinners.--The affidavit required by
subsection (c)(2)(A) is a notarized affidavit provided by an
officer of the producer of ring spun yarns that affirms--
(1) that the producer used pima cotton grown in the United
States during the period January 1, 2002, through December
31, 2002, to produce ring spun cotton yarns, measuring less
than 83.33 decitex (exceeding 120 metric number), in single
and plied form during 2002;
(2) the quantity, measured in pounds, of ring spun cotton
yarns, measuring less than 83.33 decitex (exceeding 120
metric number), in single and plied form during calendar year
2002; and
(3) that the producer maintains supporting documentation
showing the quantity of such yarns produced, and evidencing
the yarns as ring spun cotton yarns, measuring less than
83.33 decitex (exceeding 120 metric number), in single and
plied form during calendar year 2002.
(g) No Appeal.--Any amount paid by the Commissioner of the
Bureau of Customs and Border Protection under this section
shall be final and not subject to appeal or protest.
SEC. 408. TAX COURT REVIEW OF REQUESTS FOR EQUITABLE RELIEF
FROM JOINT AND SEVERAL LIABILITY.
(a) In General.--Paragraph (1) of section 6015(e) of the
Internal Revenue Code of 1986 (relating to petition for tax
court review) is amended by inserting ``, or in the case of
an individual who requests equitable relief under subsection
(f)'' after ``who elects to have subsection (b) or (c)
apply''.
(b) Conforming Amendments.--
(1) Section 6015(e)(1)(A)(i)(II) of such Code is amended by
inserting ``or request is made'' after ``election is filed''.
(2) Section 6015(e)(1)(B)(i) of such Code is amended--
(A) by inserting ``or requesting equitable relief under
subsection (f)'' after ``making an election under subsection
(b) or (c)'', and
(B) by inserting ``or request'' after ``to which such
election''.
(3) Section 6015(e)(1)(B)(ii) of such Code is amended by
inserting ``or to which the request under subsection (f)
relates'' after ``to which the election under subsection (b)
or (c) relates''.
(4) Section 6015(e)(4) of such Code is amended by inserting
``or the request for equitable relief under subsection (f)''
after ``the election under subsection (b) or (c)''.
(5) Section 6015(e)(5) of such Code is amended by inserting
``or who requests equitable relief under subsection (f)''
after ``who elects the application of subsection (b) or
(c)''.
(6) Section 6015(g)(2) of such Code is amended by inserting
``or of any request for equitable relief under subsection
(f)'' after ``any election under subsection (b) or (c)''.
(7) Section 6015(h)(2) of such Code is amended by inserting
``or a request for equitable relief made under subsection
(f)'' after ``with respect to an election made under
subsection (b) or (c)''.
(c) Effective Date.--The amendments made by this section
shall apply with respect to liability for taxes arising or
remaining unpaid on or after the date of the enactment of
this Act.
Amend the title to read as follows: ``An Act to amend the
Internal Revenue Code of 1986 to extend expiring provisions,
and for other purposes.''
The SPEAKER pro tempore. Pursuant to House Resolution 1099, the
gentleman from California (Mr. Thomas) and the gentleman from New York
(Mr. Rangel) each will control 30 minutes.
The Chair recognizes the gentleman from California.
Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, to make sure that Members understand what we are doing,
and, quite frankly, why we are doing it today rather than yesterday, is
that we are considering H.R. 6111. H.R. 6111 is a bill that passed the
House on suspension by voice vote on December 5. It then passed the
Senate by unanimous consent with an amendment yesterday, December 7.
We are doing this as the House of Representatives to assist the
Senate under its rules to facilitate the handling of the amendment we
are now discussing, and we are doing this because given the Senate
rules, they
[[Page H9061]]
would require a 2-day layover, two cloture votes and a number of other
procedures. By doing this this way, we will save them a day and a
cloture vote. Once again, the courtesy and kindness of the House is
assisting the Senate in accomplishing the work of the Congress.
So, if you will please understand, the gentleman from New York and I
will lead a discussion on the amendment to H.R. 6111. In fact, the
amendment is as though the entire text of H.R. 4608, the Tax Relief and
Health Care Act of 2006, is before us. In addition to that, there are
several other provisions that accompany the Tax and Health Care Relief
Act.
So, notwithstanding the merits of H.R. 6111, the discussion will be
on the so-called tax extenders bill; the energy extenders bill;
Medicare, the so-called doctors fix; the health care provisions;
certain wilderness designations; some tariff procedures and other items
which will in fact be the subject of the debate we are about to be
engaged in.
Mr. Speaker, I reserve the balance of my time.
{time} 1330
Mr. RANGEL. Mr. Speaker, I ask unanimous consent to yield 15 minutes
to the gentleman from Massachusetts (Mr. Markey), who is in opposition
to the bill before us.
The SPEAKER pro tempore. Without objection, the gentleman from
Massachusetts will control that time.
There was no objection.
Mr. RANGEL. Mr. Speaker, I yield myself such time as I may consume.
I concur, Mr. Speaker, with the observations of the chairman as to
the content of this bill. Naturally, this is the last day of the 109th
Congress, and I do hope that the new majority would at least learn how
not to legislate. Most of the Members have no clue as to what is in
this bill. This is a late hour. There is certainly far more good in it
than bad.
I wish we had seen fit to have been able to get the New York Liberty
Bond 9/11 relief converted to a transportation infrastructure, which
was stripped from this bill that passed the House before.
There are other things in this bill, and I assume those people who
are asking for time will be discussing them.
Mr. Speaker, as of now, I reserve the balance of my time.
Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume.
Perhaps again it is necessary to underscore the fact that the
procedure we are going through is not the choice of the House. The
current minority leader, to be the majority leader, and I know I am
violating the rules when I say the gentleman from Nevada, personally
called and asked that we engage in this procedure to assist the Senate.
I do hope the gentleman from New York, when he assumes his majority
rule, will see fit to accommodate even Members of the other party in
making sure that the people's work is done in the most reasonable
fashion possible.
So, yes, it seems a little bit complicated, but it is in large part
because both the Democratic and the Republican leadership of the Senate
asked for our assistance in doing it this way.
Mr. Speaker, it is my pleasure to yield 2 minutes to the gentleman
from Arizona (Mr. Hayworth), a distinguished member of the Ways and
Means Committee.
(Mr. HAYWORTH asked and was given permission to revise and extend his
remarks.)
Mr. HAYWORTH. Mr. Speaker, I thank my colleague from California, and
I would be remiss if I did not take a portion of this time to thank him
for his stewardship and his time as chairman of the Ways and Means
Committee.
While we are in a period where we move to complete the 109th Congress
and we look ahead, it is worth noting that what has passed is prologue,
and indeed, as we have just come through a campaign where the cry has
been for bipartisanship, for consensus, I commend one of the
procedures, or one of the provisions, that is included in this
legislative vehicle of extenders for tax considerations, and that is,
the extension of the solar and fuel cell investment tax credits.
Why do we offer this? Well, because there is support for alternative
forms of energy and, in particular solar power, from all America.
Eighty-two percent of Republicans, 77 percent of Democrats, 87 of
Independents say we need to find alternative forms of energy.
Mr. Speaker, for over a decade, I have been honored to represent the
people of Arizona, more specifically, the eponymously nicknamed Valley
of the Sun. But from Maine to Montana, from Arizona to Alaska to
Alabama, across the country we need to utilize alternative forms of
energy such as solar energy, such as fuel cell technology, and this
provision does so.
We extend it for an additional year. Were it up to me, I would like
to see it for a full decade, but as we know, as my good friend, the
late John Rhodes, our former House Republican leader, used to say,
``Politics is the art of the possible.''
Today with this legislation, though some are troubled by process, we
have a chance to produce results. I ask you to join us in passing this
legislation and extending solar and fuel cell investment tax credits.
Mr. MARKEY. Mr. Speaker, I yield myself 3 minutes.
Mr. Speaker, this bill contains a provision which really is unrelated
completely to the tax extenders. There are indeed tax credits and other
things, very good; but what they have decided to do is attach a rider
to this bill, and that rider is a special sweetheart deal that changes
the entire formula for the collection of royalties, that is, taxes, for
the American people for oil and gas which is drilled for on public
lands.
Because of this change in formula, $170 billion is going to be
transferred from the pockets of the American taxpayer of 46 States and
sent to four States. In the course of the debate this afternoon within
the hour, we will be considering an amendment, an amendment which will
say that if any oil companies want to drill for the oil in the gulf
that is going to be permitted under this new bill, that these companies
must renegotiate the old leases which they received back in the 1990s,
which, believe it or not, makes it possible for them to escape paying
royalties on oil and gas drilled for on public lands in the United
States. Even if the price of oil goes to $40, $50, $60, $70, $80 a
barrel, oil companies do not pay any more royalties.
Well, what our amendment will say is that they must renegotiate. The
oil and gas industry must renegotiate with the Federal Government to
return those windfall profits on the old leases before they are going
to be allowed to drill for these new leases in the Gulf of Mexico. In
that way, the taxpayers will reclaim $20 to $30 billion of revenues
that can be used for health care, for education, to pay for the war in
Iraq, to balance the Federal budget.
So I just want all the Members to know that that is the nature of the
amendment which is going to come up within the hour. It is fair. If the
oil companies are going to receive such a boon out of this bill, if the
gulf States are going to receive such a boon out of this bill, as much
as I object to it, the least that we should be able to say is that we
reclaim those revenues, and as a bonus, Mr. Rangel has inserted into
the amendment, which I will be making, a provision which extends the
AMT protection for 20 million Americans so their taxes do not go up
next year, 2007.
So with two things, you reclaim 20 to $30 billion from oil companies
and you protect all taxpayers from an increase in the AMT.
Mr. Speaker, I reserve the balance of my time.
Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, so that people again understand the process,
notwithstanding the fact we are dealing with what amounts to a tax
bill, because of the unusual procedure of using H.R. 6111 as a vehicle,
asked for by the bipartisan leadership of the Senate and provided by us
as a courtesy, there would be no motion to recommit available to the
minority. This is a substantive amendment which is functioning as a
substitute for the motion to recommit.
It has been indicated to me directly by that bipartisan leadership
and those individuals I mentioned that if what was to be a motion to
recommit and which will now be a substantive amendment passes, in their
opinion, this bill will not be able to move through the Senate.
[[Page H9062]]
It may surprise the gentleman from Massachusetts to know that I agree
with virtually everything he said and would like to add additional
items in terms of the OCS provision. In fact, an Outer Continental
Shelf measure passed the House. The measure that is currently carried
in this amendment is totally isomorphic, exactly the same as the Outer
Continental Shelf legislation that passed the Senate, that the Senator
from New York, Mrs. Clinton, that the Senator from Nevada, Mr. Reid,
and others supported 71-25. Need I say, this is an additional courtesy
that the House is providing.
If, in fact, Mr. Markey's amendment passes, everything we will be
talking about for the rest of the time on this amendment will be moot.
Mr. Speaker, it is now my pleasure to yield 2 minutes to the
gentleman from Illinois (Mr. Weller), an extremely valued member of the
Ways and Means Committee.
Mr. WELLER. Mr. Speaker, I thank the chairman for his leadership in
the last 6 years in the House Ways and Means Committee. It has been a
privilege to serve with you and under your leadership.
I rise in support of this legislation, which is known as the extender
legislation, extending tax provisions which expired this past year, all
tax provisions that have an economic impact on investment decisions
affecting the economy in my district and the economy of our Nation.
I am pleased that we are extending the work opportunity tax credit. I
am pleased we are extending the welfare-to-work tax credit. I am
pleased that we are combining these two to make them much more
efficient. When Ronald Reagan created the welfare-to-work tax credit
back in the early 1980s, his goal was pretty simple: let us give those
who are on the welfare rolls an opportunity to get a job and
incentivize private employers to do that, and it has worked. In the
district I represent, an estimated 700 workers today have jobs because
of the work opportunity tax credit.
Most are pleased that this legislation extends and expands the
brownfields tax incentive. I represent an oil industrial area. They
have brownfields, old industrial parks. We want to recycle them. We
want to reclaim them. We want to revitalize the neighborhoods they are
located in. The brownfields tax incentive provides that incentive for
private investors to purchase it, help recover their costs in
environmental cleanup.
Also in this legislation we expand it. Forty percent of brownfields
have petroleum contamination. If you are driving through a community
and you see that old abandoned gas station that has been there for
decades and you wonder why somebody has not bought it, that is because
there is petroleum contamination. This tax incentive will help clean
that up and revitalize that strategic corner in your community.
Also, I want to commend this House and this committee on moving
forward on extending the energy-efficient homes tax incentive. When you
often think about it, 20 percent of the energy we consume in America is
consumed in our residences, in our homes, and people when they put a
little extra money in their home, they want to make their bathroom
nicer or they want a nicer, fancier kitchen, they do not always think
about the need to conserve energy. The energy-efficient homes tax
incentive encourages home builders, those building new construction,
new homes to make them better insulated, better windows, better doors
and ceilings and reducing energy costs.
I would note that both brownfields provisions and the energy-
efficient residential tax incentive are both important environmental
initiatives as well. We often talk about jobs being created, but when
you reduce energy consumption, when you clean up and revitalize old
industrial parks and, frankly, when you give those on welfare an
opportunity to work, we all win.
So I encourage bipartisan support for this legislation, urge an
``aye'' vote.
Mr. RANGEL. Mr. Speaker, I am privileged to yield 2 minutes to the
gentleman from Michigan (Mr. Levin), a senior respected member of the
Ways and Means Committee.
(Mr. LEVIN asked and was given permission to revise and extend his
remarks.)
Mr. LEVIN. Mr. Speaker, I thank Mr. Rangel.
All due respect to the energies and labors of the chairman of the
committee, this is another example of how not to legislate. I favor the
extenders bill. Almost everyone else in this place does. Mr. Rangel has
been talking about extenders extensively.
An extenders bill could pass this House and could pass the Senate
today on its own, just like this. Why is that not happening? It is not
just because the gentleman from Arizona says politics is the art of the
possible. It is also because it should be the art of the rational and
the art of the appropriate, and this package is not appropriate.
Mr. Markey has spoken so eloquently about the Continental Shelf
legislation, and now we are threatened that if his amendment fails the
whole bill fails, which I think is a statement of how not to legislate.
We do not want to legislate by holding ourselves hostage. That is not
the way to legislate.
{time} 1345
And also there will be some discussion about the health savings
account. That proposal could not pass on its own, so essentially it is
being packaged with the extenders bill because it is the only way to
get it through here. We will do it differently next year; we will serve
the people of this country more effectively, more openly. When there is
a bill like the extenders bill that can rise on its own, it will do
that.
The Senate says they need our cooperation. We will cooperate. It
would be better to send the extenders bill on its own.
So all of us will have this choice, a package of good and bad, and
each of us will have to make that decision, a decision we should not be
forced to make.
Mr. MARKEY. I yield 3\1/2\ minutes to the gentleman from New York
(Mr. Hinchey).
Mr. HINCHEY. Mr. Speaker, I want to thank my friend and colleague
from Massachusetts for his initiative on this legislation, because what
he is doing is making available to this House the opportunity to
correct a very serious problem which has been existing now since 1995.
In 1995, this House and this Congress passed a law which essentially
allows the oil companies to take oil and natural gas from the American
people out of their public property without paying them the royalties
that are owed to them. This ridiculous situation has been going on now
for more than 10 years.
We have an amendment that is being offered to this bill which every
Member of this House should vote for. If they have any respect for
their obligations to the American people, every Member of this House
should vote for this amendment, because what this amendment does is
this, very simply: It says to the oil companies, if you want new leases
so that you may increase your profits by taking a very valuable
commodity from public property owned by the American people, if you
want to be able to do that, you have to in order to get those new
leases renegotiate the old leases that you have on public property so
that you will pay back to the taxpayers of America the money that you
owe them on this commodity, oil and natural gas.
It is a very simple and very reasonable thing to do. If we fail to do
it, what will happen is this. According to the Department of the
Interior, the taxpayers of America will lose as much as $60 billion
which will go into the pockets of the oil companies who are already
realizing record profits. The oil companies have more cash than they
know what to do with. And what this Congress has been doing is allowing
them to increase their profits by taking a product that is owned by the
taxpayers of America, exploiting that situation, increasing their
profits, and not paying back the percentage of royalties that is owed
to the people of this country. So it is a very simple amendment, and
there is absolutely no reason why it should not pass.
This House already passed an amendment just like this. Back in May,
Mr. Markey and I offered an amendment to an Interior appropriations
bill which would do precisely the same thing. That amendment was
adopted by this House by a very substantial margin. The problem is the
Interior appropriations bill went over to the other Chamber and since
then nothing has happened with the bill, it has just laid there idly.
And so the situation now continues to exist.
[[Page H9063]]
So what the majority here apparently wants to do is to say that even
though the oil companies have leases on 80 percent of the land that is
available, of the offshore land that is available, they want to
increase that above and continue to take this product and continue to
take this commodity from the American people without paying them back
the money that is owed to them.
This has got to stop. It has been going on now for more than a
decade. The people of this country continue to suffer. And that is one
of the reasons why they made the decision on November 7 that they did,
because they recognize the suffering that they have been exposed to as
a result of the carelessness and exploitation that has been authorized
by this Congress.
Pass this amendment, correct the mistake, give the American people
the money that is owed to them, and do it in a just way.
Mr. THOMAS. Mr. Speaker, I appreciate people and their passion
getting a bit carried away.
This bill was signed into law by the last Democratic President, Mr.
Clinton. It was on your watch. To stand in the well and tell us what is
in the amendment that is going to be offered in a short time, after
being criticized that they have only had 2 days on the content of our
amendment, is absolutely unbelievable.
We made this amendment in order because you didn't have the right to
the motion to recommit. The Rules Committee out of courtesy asked you,
could we have a copy of your amendment? You told the Rules Committee
``No, you couldn't have a copy of the amendment.''
Mr. Markey earlier described your amendment as having more than one
item. Mr. Hinchey talked about it being OCS. Mr. Markey said it was OCS
and it was AMT and it may be something else.
What amazes me is that they can stand there with a straight face and
criticize us because they only got the copy, the absolute legislative
language, 2 days ago on our bill, and they have the audacity to go to
the well and describe their amendment and what it is when they won't
even give us a copy of it. Now, this is a preview of the coming
majority in terms of their saying one thing and doing another. Buckle
your seat belts. The piety and the arguments about how correct they are
and how unfair it is was just said. This was done by this Congress, it
was signed by President Clinton, and we have no idea what is in your
amendment because you didn't even offer the courtesy of giving us the
language of your amendment notwithstanding the fact that we gave you
the privilege of offering an amendment. Now, that is what this is
about. Okay?
Mr. Speaker, I yield 2 minutes to the gentleman from California (Mr.
Herger), a member of the committee.
Mr. HERGER. Mr. Speaker, I rise in strong support of the tax relief
legislation before us today.
I would also like to make a note of thanks to Chairman Bill Thomas.
Bill is ending a prolific 6-year tenure as chairman of the Ways and
Means Committee, during which he has been responsible for the passage
of each pro-growth and pro-family tax measure since 2001. I would like
to thank Chairman Thomas and his staff for their work which has
continued through the writing of today's legislation.
Among the expiring tax relief measures is an extension and
modernization of the research and development tax credit. In my own
home State of California, more than 6,600 firms perform R&D, helping to
make California number one in reported research and development
activity. In the face of an extremely competitive global marketplace,
the R&D tax credit helps keep America first among other nations in new
cutting-edge innovation.
Also included is a provision that helps bring equity to farmers and
small businesses in rural areas such as my own home district in
northern California. Agricultural aviators, who are exempt from fuel
excise taxes, will now be able to claim tax refunds directly without
having to rely on fuel suppliers to pass along this benefit. Even
though this is a small change, it will help reduce fuel costs for ag
aviators and spraying costs for farmers who employ ag aviators to plant
and maintain their crops. Mr. Speaker, I urge passage of this bill.
Mr. RANGEL. Mr. Speaker, I am going to be very careful in the words
that I select because I am not certain that the House physician's
office is still open, and I just don't want to get overstressed over a
parliamentary problem that we are having here. But it is very difficult
to understand how the outgoing chairman could be so frustrated that the
amendment is coming at this late hour, because we cannot really get an
amendment together until we know what we are amending, and I assume
that we didn't know that until sometime early this morning at a meeting
that took place at a room which I don't know where it exists. So I
think that this amendment that we do have deals with an issue that we
never expected to be included in the extended bills. And under the
parliamentary procedures that we have in this august House and this
institution, Members, even if they are in the minority, have an
opportunity at any time to raise it before the House. And we hope that
we can extend this courtesy for the years that we have to come.
I would like to yield 2 minutes to the distinguished gentleman Mr.
Pomeroy from the sovereign State of North Dakota.
Mr. POMEROY. Mr. Speaker, I thank the gentleman for yielding and
would amplify just for a moment on his point. You can't get your
amendment set until you know what the underlying bill is. And with all
the moving parts in the underlying bill, that simply was not possible.
But I believe that this election was about restoring more of a
bipartisan tone to the functions of this Chamber. And in that context,
I want to tell the departing chairman I wish him well as his service in
this body comes to a conclusion. I wish all my Ways and Means
colleagues, Republicans and Democrats alike, a very happy holiday
season.
There are several portions of this bill that are important, and I
applaud those who constructed this legislation for including these
components. I am not speaking about the amendment which will be
brought; that will be dealt with by other speakers. But there is a lot
of good in this bill, and I don't want it lost in the discussion here.
I chair, along with Greg Walden, a bipartisan group, the Rural Health
Care Coalition. We have advanced legislation to try to improve the
unfairness of the Medicare system relative to rural hospitals. I am
pleased that the bill includes provisions, including a continuation of
the geographic classification issue, section 508, that was in the
Medicare Modernization Act and addresses reasonable cost payment for
lab tests in small rural hospitals and a number of other provisions
found their way into this bill. They are important to us, and I speak
in favor of them.
I also believe that it was absolutely essential we address this
physician payment issue in this legislation. It should be underscored,
I suppose, that this is just a very stop-gap fix and more will need to
be done. There is some very important features in here on renewable
energy as well. The plus-up of the clean renewable energy bonds with an
additional $400 million to fund renewable energy projects, extremely
important. A 1-year continuation of the wind production tax credit is,
no question, going to allow more wind farms to be brought online,
bringing this renewable energy source, clean renewable energy source,
more into our power mix. And the extension of the ethanol tariff is
also important, something to keep in mind as we consider it this
afternoon.
Mr. Speaker, I rise in support of H.R. 6111, the Tax Relief and
Health Care Act of 2006 as it provides for much needed relief for those
physicians, hospitals and laboratories who serve North Dakota's 103,000
Medicare patients.
As you know, the Medicare Modernization Act made long overdue
corrections to significant flaws in Medicare payment schemes that have
made a tremendous difference to the hospitals, doctors and other
providers in my State and throughout the rural America. Several of
these provisions, which help to level the playing and simply keep
hospitals and doctors offices open, have or are about to expire.
However, access to health care services in rural areas continues to be
in jeopardy due to physician shortages, low patient volume and
geographic isolation. In my own State of North Dakota, over two-thirds
of our counties are designated as Physician Scarcity Areas.
[[Page H9064]]
That is why Representative Greg Walden, myself and over 50 other
bipartisan members of the Rural Health Care Coalition introduced H.R.
6030, the Health Care Access and Rural Equity Act, otherwise known as
H-CARE. This commonsense legislation significantly improves health care
quality and access in North Dakota and rural America while also
increasing the viability of rural providers.
I am pleased to see that a number of the provisions Representative
Walden and I authored for H-CARE are included in today's bill. From
extending the Medicare Modernization Act, MMA, floor on the Medicare
work geographic adjustment for physician services to continuing to
provide reasonable cost payment for lab tests in small rural hospitals,
H.R. 6111 helps to maintain important corrections in our current
Medicare payment system. In addition, this bill extends a critical
provision of the MMA that created greater wage parity between hospitals
in my State of North Dakota.
These MMA rural health provisions have already made a tremendous
difference in our State. For example, one hospital was able to use the
funding to recruit four new physicians. Other hospitals used the
funding to invest in capital infrastructure including much needed and
costly ultrasound equipment and electronic health record systems. In
addition, these hospitals were able to increase salaries anywhere from
4 to 8 percent.
While H.R. 6111 extends many critical rural health care provisions
from the MMA and brings temporary relief for our Nations physician's,
our work is not done. I think we would all agree that the physician
payment system under Medicare is a flawed system that penalizes
efficient care and rewards excessive care. I look forward to working
with my colleagues in the 110th Congress in a bipartisan manner to
improve our Medicare physician payment system and further advance the
remaining components of H-CARE in order to improve access to quality,
affordable health care in North Dakota and rural America.
This bill also contains important provisions for our growing
renewable energy industry. Included in H.R. 6111, the Tax Relief and
Health Care Act of 2006, are an extension and expansion of the Clean
Renewable Energy Bond program, a 1-year extension of the Wind
Production Tax Credit and over a year extension of the ethanol tariff
that protects American ethanol producers from subsidized foreign
ethanol.
Through this continued investment in renewable energy we not only
build a sustainable industry for our State but we are helping make
America more energy independent and more secure.
Clean Renewable Energy Bonds, which I helped develop as part of the
2005 Energy Bill, can now be offered for an additional year and have
been authorized to release an additional $400 million of clean energy
bonds. In North Dakota we have already seen the effects that Clean
Renewable Energy Bonds can have. The city of Fargo will be using Clean
Renewable Energy Bonds to finance a wind tower and a methane gas
facility that will be used to reduce the city's energy costs. Great
River Energy will also be using these energy bonds to finance the
construction of a coal drying facility which will not only increase the
efficiency of North Dakota lignite coal but also reduce emissions.
Clean Renewable Energy Bonds work by allowing a Federal tax credit to
holders of bonds issued by public utilities and cooperatives to finance
clean energy projects. Not-for-profit utilities can sell clean energy
bonds to stakeholders, but instead of the utility or cooperative paying
out interest to the bondholder, the Federal Government would give the
bondholder a tax credit. These bonds provide what amounts to interest
free loans for co-ops and public power systems to finance renewable
energy projects.
This bill also extends the wind production tax credit to 2009. In
2015, wind energy generation is expected to reach 63 gigawatts with the
tax credit in place compared to an estimated 9.3 gigawatts without.
This represents a 650 percent increase in wind generation.
However, without stabilizing the tax credit, companies like DMI
Industries in West Fargo and LM Glassfiber in Grand Forks are in
constant limbo. DMI manufactures wind turbine towers and had furloughed
over 100 employees in late 2003 after the expiration of the wind
production tax credit. LM Glassfiber, which manufactures wind turbine
blades, had previously idled all production due to the delay in
extending the wind tax credit and was forced to furlough 60 to 70
employees.
Mr. MARKEY. Mr. Speaker, I yield 2 minutes to the gentlewoman from
New York (Mrs. Maloney).
{time} 1400
Mrs. MALONEY. Mr. Speaker, I thank the gentleman for yielding and for
all of his leadership, and I congratulate the dean of our delegation,
Charlie Rangel, for working hard on this bill and restructuring of the
bond issue for New York City, among other issues.
Why I am rising today, however, is the audit report that came out 2
days ago of the Department of the Interior. It was a scathing
indictment of mismanagement and cronyism. In my years on the Committee
on Government Reform, it is the worst report I have seen and it
documents billions of dollars that are owed to the American people for
oil and gas extracted from federally owned land, land owned by the
American people. These revenues are not coming into the Treasury, but
into the pockets of the oil industry.
I rise in support of the Markey-Hinchey amendment, which includes,
among other things, a renegotiation of these leases to pay a fair price
to the American public and to our country. It is long overdue. We
should not tolerate this type of mismanagement. It showed that the
number of audits have gone down, the number of auditors have come down.
They have a paper compliance review board that has oversight which
amounts to pushing paper around. It is not a watchdog, but a lap dog,
for private industry as opposed to documentation of what is fairly
owned to the American people and to our government.
Correcting this will literally bring 10 to $30 billion into the
Treasury of the United States. It is the fair thing to do. It is the
right thing to do. We should all follow and read this important report
and vote to renegotiate the rip-off leases and have them pay a fair
deal for what they are reaping for their own pockets.
Our constituents are paying record prices at the pump and for heating
oil; yet the oil companies are not paying their fair due for their
leases on American federally owned property. This is an important
amendment, and I urge my colleagues to support it.
Mr. THOMAS. Mr. Speaker, I yield myself 5 seconds.
Mr. Speaker, this is the third Member on the other side of the aisle
who spoke passionately about an amendment that apparently they have had
time to write, circulate and read. We have not been presented with that
amendment. Obviously, with some fervor, I indicated that I didn't think
that probably was the fair thing to do. They now know how the majority
feels, having given them the right to offer an amendment. My assumption
is that continued refusal to provide us with a copy of the amendment is
willful.
Mr. RANGEL. You may not have received the amendment, but you have
received the best wishes from the Democrats on your 65th birthday, and
we wish you well.
Mr. THOMAS. Mr. Speaker, will the gentleman yield?
Mr. RANGEL. I yield to the gentleman from California.
Mr. THOMAS. That was 2 days ago. What are you doing for me lately?
Mr. RANGEL. We are saying good-bye.
Mr. Speaker, I would like to yield 2 minutes to an outstanding Member
who has served this Congress and served the Ways and Means Committee
with distinction. And as he goes to raise the level of intellect in the
other body, I yield to him on this bill.
Mr. CARDIN. Mr. Speaker, let me thank Mr. Rangel not just for
yielding me this time, but for your friendship. I have enjoyed my years
on the Ways and Means Committee. Mr. Thomas, I wish you only the best.
It has been an incredible experience to serve on the Ways and Means
Committee.
It is interesting that the last bill that we will be considering,
maybe not the last because we will have a trade bill later, but this
bill causes me some trouble because of the manner in which provisions
have been brought together. It seems to me that we should have had an
opportunity to vote on many of these provisions separately.
Several provisions that have been incorporated in this bill I have
voted against, and I would like an opportunity to do that again.
I am troubled because there are some very important provisions
included in this legislation. As you know, we let expire many important
tax provisions in the beginning of this year, and this bill will
reinstate those provisions effective for 2006 and 2007.
I am particularly pleased that the research and development credit is
extended and improved for 2007. I worked with Mr. Weller from the other
side of the aisle so we could make the research
[[Page H9065]]
and development credit more available for businesses today. I am glad
that is included.
I am glad that we have extended the deduction for higher education
expenses. We need to bring down the cost for higher education for
families in this country.
On the environmental front, I am very pleased we have extended the
provisions for electricity-using renewable sources. That is certainly
in our interest as a Nation on energy independence.
I am also pleased that on the Medicare side we have found a way to
provide relief for physicians update for this year. I hope that we will
be able in the next Congress to do that on a permanent basis, and I am
pleased also that we have been able to extend therapy cap provisions so
that the harsh impact will not be felt by Medicare beneficiaries.
Mr. Speaker, there are many provisions in this bill that are
extremely important for us to enact before we adjourn sine die. I am
pleased that the provisions that have come under the jurisdiction of
the Ways and Means Committee are provisions that I think are important
to be enacted, and I hope we will find a way to ensure that they are
enacted before we adjourn sine die.
Mr. MARKEY. Mr. Speaker, I reserve the balance of my time.
Mr. RANGEL. Mr. Speaker, I yield 2 minutes to the gentleman from
California (Mr. Becerra), an outstanding member of the committee.
Mr. BECERRA. Mr. Speaker, here we are on December 8 talking about
legislation that we had discussed in prior months this year before this
Congress was set to adjourn officially on September 30. We find today a
circumstance where we have some very good provisions that are lumped
together in this legislation.
We have provisions in this bill that would promote the cleanup of
brownfields. Those are contaminated sites throughout this country that
are lying empty because they are too contaminated to use and too
expensive to clean up. We are going to promote the cleanup of those
brownfields.
We are going to provide a better way to have environmental
settlements occur so we have funds in place that will then be used to
help pay for cleanup of environmental degradation.
We have the very important research and development tax credit which
so much of American business needs to know about so they can make sound
investments into the future about what to devote their next 10-20
years' worth of money into in terms of research and development.
We have the welfare-to-work tax credit to get folks on welfare back
to work.
We have the extension of the American Jobs Creation Act for Puerto
Rico manufacturing; but we have a lot of other things as well that
don't belong here.
It is one of those circumstances where you are looking at a great
baby that just took a bath and you are wondering how you can get rid of
the bath water without getting rid of the baby. Unfortunately, it is a
circumstance where many Members are probably going to wait until the
time of the vote to decide if it is worth throwing away the bath water
and not jeopardizing the baby.
I must say, it is good to know we are at December 8 with a vote
having taken place in November, with the American public having told us
enough is enough, we want a new direction and a new way of doing
things. I hope come 2007 this Congress will behave itself in a way that
makes the American people proud of what it has so we don't have
circumstances where a lot of Members say there is some great stuff
here, and a lot of bad stuff, too. At the end of the day, this will be
a vote that no one will be too proud of, but hopefully will move us
forward.
Mr. MARKEY. Mr. Speaker, I yield 2 minutes to the gentlewoman from
California (Mrs. Capps).
(Mrs. CAPPS asked and was given permission to revise and extend her
remarks.)
Mrs. CAPPS. Mr. Speaker, I rise in reluctant opposition to this
package of bills the Republican leadership has brought to the floor.
Included are many provisions that are worthy of support of this
House. The bill extends important energy-efficiency tax credits,
provisions so important to American families and businesses, which
should be extended.
The bill also prevents what would have amounted to a 5.1 percent cut
in Medicare physician reimbursements. That cut would be devastating,
hindering physicians' ability to treat their patients.
But I must vote against this package because it includes the so-
called Gulf of Mexico Energy Security Act. That act makes this bill
fiscally irresponsible. According to estimates, the bill will drain
$170 billion from the Federal Treasury over the next 60 years, creating
a new entitlement immediately, giving away huge amounts of revenue from
offshore drilling, mostly to only four Gulf Coast States. It is a great
deal for those four States, and I understand why they would support it;
but what I don't understand is why any colleagues from the other 46
States would agree to it.
The offshore waters of the gulf coast belong to all Americans, as do
the Pacific and Atlanta Oceans, the Great Lakes, and public lands. This
country has record deficits as far as the eye can see, and it is simply
irresponsible to add billions more in new debt through legislation like
this.
Mr. Speaker, in the new Democratically controlled Congress, we can
and we should craft a sensible new energy policy, one that helps
Louisiana and other States rebuild wetlands and restore their coasts,
and one that makes America less dependent on fossil fuels. And one that
doesn't bust the budget.
Sadly, this bill falls woefully short.
Mr. Speaker, I rise in reluctant opposition to this package of bills
the Republican leadership has brought to the floor this evening.
This bill includes many provisions that are worthy of the House's
support.
For example, the bill extends the Research and Development tax credit
and important energy efficiency tax credits. These tax provisions are
important to American families and businesses and should be extended.
The bill also prevents what would have amounted to a 5.1 percent cut
in Medicare physician reimbursements. This cut would be devastating,
hindering physicians' ability to treat their patients. And it would
make it even harder for Medicare beneficiaries to have the best
possible access to quality health care.
I have long been vocal in my support for reforming the flawed
physician fee structure so I am pleased that this provision will become
law. But it is a pity that the Republican leadership has waited until
the last minute to enact this provision.
Mr. Speaker, I have faith that the incoming Democratic Majority will
move quickly to address this and other Medicare payment problems, like
the geographic practice cost index problem plaguing my district, in the
110th Congress next year. I know that I will be working hard to see
these issues addressed.
We simply must revamp the Medicare physician payment structure to
ensure our doctors are being paid appropriately and that our patients
can be assured of readily available quality health care.
But Mr. Speaker, I must vote against this package because it includes
S. 3711, the so-called Gulf of Mexico Energy Security Act.
There are several reasons that I oppose S. 3711.
First, it's bad energy policy. Our first steps in crafting a new
energy policy should be to reduce demand and develop new alternative
and renewable energy sources. We missed that opportunity in last year's
misguided energy bill and sadly, this bill continues that mistake.
Second, this bill is fiscally irresponsible. According to estimates,
the bill will drain $170 billion from the Federal treasury over the
next 60 years. It creates a new entitlement immediately giving away
huge amounts of revenue from offshore drilling, mostly to only four
Gulf Coast States.
This is a great deal for these four States and I certainly understand
why they support it. What I don't understand is why my colleagues from
the other 46 States would agree to it. The offshore waters of the gulf
coast belong to all Americans, as do the Pacific and Atlantic Oceans,
the Great Lakes and other public lands.
Mr. Speaker, we have record deficits as far as the eye can see and it
is simply irresponsible to add billions more in new debt through
legislation like this.
Finally, this bill will damage our environment. It will bring the 25-
year-old bipartisan moratorium against new drilling off America's
coasts one step closer to an end. It threatens our coastal economies
with the risk of pollution and oil spills.
Mr. Speaker, in the new Democratically controlled Congress we can--
and should--craft a sensible new energy policy. One that helps
[[Page H9066]]
Louisiana and other States rebuild wetlands and restore their coasts.
One that makes America less dependent on dirty fossil fuels. And one
that doesn't bust the budget.
Sadly this bill falls woefully short.
And that's why I urge my colleagues to support the Markey-Boehlert
motion to recommit.
This motion would prevent the Interior Department from awarding
leases to companies that are currently drilling in American waters
without paying royalties. We need to bring the oil companies back to
the negotiating table to close the royalty relief loophole.
And, Mr. Speaker, as one of the last acts of this Congress we need to
pass a clean bill that extends these critical tax credits and fixes the
flawed physician fee formula once and for all.
Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I want to thank my friend from Massachusetts for
providing the majority with the amendment.
Frankly, I was rather baffled why my friend from New York would yield
half their time to the gentleman from Massachusetts since he has time
under his own amendment. Having now seen the amendment, I find it
interesting that it is an 11-page amendment, a portion of a page is on
research credits, a portion of a page is on the alternative minimum
tax. The Outer Continental Shelf portion of the 11-page bill, which has
been the sole focus of my friends on the other side of the aisle, is
six lines. Not six pages, six lines.
What in the world is in the rest of the 11-page bill: Eight pages
address putting back into this, over the objections of the Democratic
leader on the Senate side, the New York railroad bond provision. I now
understand why Mr. Markey got his 15 minutes.
Mr. Speaker, it is my pleasure to yield 2 minutes to the gentlewoman
from Connecticut (Mrs. Johnson), the chairman of the Health
Subcommittee.
Mrs. JOHNSON of Connecticut. Mr. Speaker, I rise in support of this
legislation because it adopts a number of extremely important tax
provisions, expensing of brownfields remediation costs, mental health
parity benefits, deduction of higher education expenses, the work
opportunity tax credits, incentives for renewable and alternative
sources of energy, and the R&D tax credit with its new forward-looking
option; but it also helps to ensure that our senior citizens will be
able to choose the physician of their choice by preventing the
scheduled 5 percent cut in physician Medicare reimbursements.
In addition, it extends the 508 hospital payments and requires a
study of how to reform the wage index system, laying the foundation for
needed reform in that area.
The Medicare home demonstration project it adopts will reward small
physician offices for managing patients with chronic or severe illness
more holistically, both to reduce the cost of medical care and to
improve the quality of the care those seniors receive.
But while I support this bill, I believe the 1-year doctor payment
policy it adopts is deeply flawed and urge my colleagues to develop a
more thoughtful and fair approach to reflecting the quality of
physician performance in our Medicare payment system.
First, in any pay-for-performance system, clinical criteria for
quality must emanate from the physician community. Bureaucrats must
never be allowed to dictate medical practice.
Second, any pay-for-performance system must not penalize doctors who
care for difficult, noncomplying patients, or patients for whom
criteria has not been established.
Consequently, all doctors should receive some increase to recognize
the increased cost of delivering care to our seniors, increased cost of
malpractice insurance, health benefits for their employees and so on.
And above that, a fair, balanced pay-for-performance system must be
adopted.
I urge support of the bill.
{time} 1415
Mr. RANGEL. Mr. Speaker, I would like to yield 1\1/2\ minutes to the
gentleman from Louisiana (Mr. Melancon).
Mr. MELANCON. Mr. Speaker, I thank the gentleman from New York for
yielding.
I appreciate the fact that today is a historic day for Louisiana.
After 50 years of producing the energy for this country that power the
plants, that power the cars, that provide the heating oil and the
natural gas, we finally are going to come to a point in Louisiana where
we are going to get something in return for the efforts that we have
put forth. And during those 50 years, our wetlands have been damaged.
Our estuaries are eroding.
The Nation, I hope, will understand after these storms, and it is
regretful that we had to have these storms in order to get the
attention, but the marshlands, the wetlands, the estuaries of South
Louisiana, the State in its wisdom has made a constitutional amendment
to dedicate the funds that come from the revenues, and this will be new
revenues, this will not be money coming out of the budget of the
country, and it will be dedicated to rebuilding America's wetlands. It
is America's wetlands because it provides for America energy and
seafood, approximately 30 percent of each to the men, women, and
children of this country.
I encourage everyone to please vote for this bill. Some have said it
is too much money, but long ago the Louisiana delegation for decades
has been asking for help and have been like the tree falling in the
woods, unheard. Now is the opportunity to not only do something for
energy production for this country but to do something for America's
wetlands, and I urge your support and vote.
Mr. THOMAS. Mr. Speaker, will the gentleman yield on my time?
Mr. MELANCON. Yes.
Mr. THOMAS. Mr. Speaker, I thank the gentleman because I do
appreciate the remarks that he just made. And we probably had not
planned on highlighting it, but as the gentleman from Louisiana well
knows, another portion of the changes that we are making in this
package is to take what was known as the Katrina GO Zone, a benefit,
and, after the time has passed, focus the money on those counties that
still remain devastated by a high percentage of destruction. Rather
than simply having money go where it may not be necessary, a portion of
this bill focuses the money where it is absolutely necessary. And as
the gentleman from Louisiana well knows, there are still major areas of
his State and other States that can easily be defined as devastated.
Mr. MELANCON. Thank you, sir.
Mr. RANGEL. Mr. Speaker, I reserve the balance of my time.
Mr. MARKEY. Mr. Speaker, I yield 1 minute to the gentlewoman from
California (Ms. Waters).
(Ms. WATERS asked and was given permission to revise and extend her
remarks.)
Ms. WATERS. Mr. Speaker, I thank the gentleman from Massachusetts for
the time.
The special interest Republican Congress is at it again. Republican
leaders are packaging three different bills together in one in order to
force Members of Congress to pass controversial legislation together
with popular legislation. And once again they have brought this
complicated legislation to the House floor without providing an
opportunity for meaningful debate and without allowing Members to
review the text of the bill in advance.
Before the election they packaged tax credit extensions and an
increase in the minimum wage together with an estate tax cut that
benefits some of the richest people in the country. Now they are
packaging tax credit extensions and an adjustment in Medicare payments
to physicians together with a special interest giveaway to their
friends in the oil industry. This special interest bill opens up 8
million acres of Florida gulf coast waters to offshore oil drilling.
The American people are sick and tired of these deceptive procedures.
That is why we won the election.
Perhaps my friends on the opposite side of the aisle just want to
provide one more favor to the oil industry before they lose control of
Congress next month.
Mr. THOMAS. Mr. Speaker, it is my pleasure now to yield 2 minutes to
a valued member of the Ways and Means Committee, the gentleman from
Texas (Mr. Brady).
Mr. BRADY of Texas. First let me thank you, Chairman Thomas, for your
years of hard work to provide real tax relief for families.
Mr. Speaker, I know in Texas, in our region, our community, your
leadership on restoring the State and local sales tax deduction, that
saves our Texas families $1 billion a year that we
[[Page H9067]]
do not have to send to Washington, that can stay in their pocketbooks,
stay in our communities, creates jobs in our State. And I know that on
behalf of seven States to whom that deduction is so important, you have
saved us from a $5.5 billion tax increase, and we are grateful.
In Washington we spend too much time debating what bills mean to each
other and not enough about what bills mean to real families. Being able
to deduct that sales tax is a real help for families, especially those
who are starting out in life. Sales taxes add up so quickly.
This bill helps families struggling to afford tuition for their
college students. It helps teachers who have to go into their own
pocketbook to pay for classroom supplies each year. I do not think they
ought to ever have to do that, but when they do, at least let them
write those expenses off.
It helps American companies who are trying to compete against the
rest of world afford the type of research it takes to keep jobs here in
America. This allows people who are trying to get their first job off
of welfare a chance to get some job openings they might not otherwise
help. It allows seniors, like my mom, to see a doctor whom she knows
and a doctor who knows her, because it does an important fix on the
Medicare.
And for States like Texas, with this new bill, we will get some
revenues from leases off our shores that will help us rebuild our
coastal wetlands and preserve our shores.
This is a classic piece of legislation that helps so many people in
America.
And while you can talk a good game about tax relief for middle-class
families, it is another thing to actually vote for it. I am proud to
vote for this bill. This is going to help a lot of families.
I encourage your support.
Mr. RANGEL. Mr. Speaker, I reserve the balance of my time.
Mr. MARKEY. Mr. Speaker, I reserve the balance of my time.
Mr. THOMAS. Mr. Speaker, at this time I will place a letter in the
Record which is a clarification sought by the gentleman from Georgia
(Mr. Price) to me.
Congress of the United States,
Washington, DC, December 8, 2006.
Representative J. Dennis Hastert,
Speaker, House of Representatives,
Washington, DC.
Dear Mr. Speaker: We would like to clarify the intent of
certain provisions in Tax Relief and Health Care Act of 2006,
H.R. 6111.
The first clarification addresses Section 1848(k)(2) of the
Social Security Act as proposed to be added by Section 101(b)
of H.R. 6111. The language presents the issue of `consensus-
based quality measures' and any `consensus organization'. The
intent of this language is to ensure that physician groups
(such as the Physician Consortium for Performance
Improvement) are actively involved in defining the quality
measures and determining the quality data to be reported
under the program.
The second clarification is in regards to the bonus
payments for physicians who volunteer to report on quality
measures starting in July of 2007 as proposed in Section
101(c) of H.R. 6111. The intent of the bill is to ensure that
the 1.5 percent bonus money to be paid to physicians who
participate in the voluntary reporting program are paid on
all Medicare claims submitted [during the reporting period]
by those participating providers, with the recognition of
monetary caps.
We appreciate your leadership and dedication to this piece
of legislation and to the House of Representatives.
Yours Truly,
Bill Thomas,
Member of Congress.
Tom Price,
Member of Congress.
Mr. Speaker, it is now my pleasure to yield 2\1/2\ minutes to a
member of the committee who will no longer be a member of the committee
but who had, in the time that she was with us, made enormous
contributions, the gentlewoman from Pennsylvania (Ms. Hart).
Ms. HART. Mr. Speaker, I thank the chairman not only for yielding but
especially for his 6 years of incredible service as chairman and his
other years of service on the Ways and Means Committee. I have not in
my 16 years as a legislator seen anybody who is so capable of
developing great policy which certainly has produced an incredible
return for this country.
Following with that, this legislation carries a number of important
tax provisions and extensions of some of those great policies that have
really helped the economy to grow in this country. With today's
announcement of an additional 132,000 new jobs created this month, this
adds to the 5.7 million jobs that our pro-growth tax policies have
created since the year 2003.
These provisions are also important to the economy in my home area,
especially in western Pennsylvania, where we have seen our unemployment
rate drop to about 5 percent over the last 3 years from upwards of 7-
plus percent.
Part of what is continuing to help development and job growth in my
area are some of the incentives to redevelop brownfields; brownfields,
those abandoned industrial sites that are very difficult to find the
capital to clean up. We are extending the incentive to clean up
brownfields. This is so hugely important to an area like mine where
there are so many industrial sites that need to be redeveloped but also
the expansion of that credit to areas that have some petroleum
contamination, which will also help us clean up the smaller sites such
as old abandoned gas stations. Extremely important to the communities I
represent.
Also the green building incentives. These tax credits for the
construction repairs for energy-efficient homes and commercial
buildings are extremely important. My home area is home to development
of such products. My area is home to a significant amount of design of
green buildings and also development of such buildings. We have had a
great spurt in that growth and are headquarters to the Green Building
Alliance. That is certainly going to help our region.
But, finally, the issue of health care and health coverage is one
that we have great strides in the last few years to improve for
Americans. The other side can say what they want about HSAs, and I hear
a lot of silliness in the characterization of HSAs from the other side
of the aisle. There are more than 3.2 million enrollees in these health
savings accounts, an alternative health coverage in this country. More
than 30 percent of those individuals were previously uninsured. And I
am going to restate that. More than 30 percent of people who put HSAs
were previously uninsured. This alternative health coverage has
provided so many opportunities for families who find it difficult to
afford traditional health coverage. The changes that we include in this
legislation will provide even more opportunity for more families to
have very good flexible health coverage.
I urge my colleagues to support these changes. They are vitally
important.
Mr. RANGEL. Mr. Speaker, I reserve the balance of my time.
Mr. MARKEY. Mr. Speaker, I reserve the balance of my time.
Mr. THOMAS. Mr. Speaker, at this time the Chair would recognize the
gentlewoman from Florida (Ms. Ginny Brown-Waite) for 2 minutes.
Ms. GINNY BROWN-WAITE of Florida. Mr. Speaker, I certainly want to
thank Chairman Thomas. He has been a great chairman and has worked with
everybody on both sides of the aisle and is sorely going to be missed.
I know he doesn't like people to say nice things about him because he
does not want to be known as a nice guy, but he truly is.
Florida, like other States, does not have an income tax, and only
recently have the residents again been able to deduct the sales taxes
from their Federal income tax. That is called parity. It is parity with
other States. This deduction was about to expire at the end of 2005.
In recent months I and many others from States that only have a sales
tax have heard from many constituents who are concerned about whether
or not they will be able to claim this deduction as they begin their
taxes, due April 15. Thankfully this legislation before us today will
extend this critical provision.
I know throughout the last several months I have probably been the
biggest nag to Mr. Thomas about this issue. I know all of my colleagues
from States that only have sales tax also have been making their views
known that this does need to be continued.
I certainly want to stress that it is common sense, and, again, it is
just parity. And we do need this very much-needed tax benefit and it is
good that we are able to deliver it just before the holidays.
I want to thank the chairman.
Mr. MARKEY. Mr. Speaker, I yield 2 minutes to the gentleman from Ohio
(Mr. Kucinich).
[[Page H9068]]
Mr. KUCINICH. Mr. Speaker, our Nation is faced with an unprecedented
challenge in global warming. Saving the planet will undoubtedly require
us to drastically curtail our use of fossil fuels. The CDC recently
said, ``Climate change is perhaps the largest looming public health
challenge we face.''
There are solutions available now, like conservation; efficiency;
development of alternative energy, wind, solar, geothermal, green
hydrogen. Congress is going to need to facilitate the transition to
clean energy in the future.
Instead, the response of this Congress is to open up 6 million acres
of protected area in the Gulf of Mexico to drilling for oil and gas. In
other words, with this bill the response is more of the same of
yesterday's destructive energy portfolio.
Wake up, Congress. Step into the 21st century of sustainable energy.
Save our natural resources. Protect our environment. Save our planet.
Or we are going to have more toxic air pollution, more fouling of the
waters of the United States on which entire industries like fishing and
tourism depend; and more global warming, more monopoly control of our
energy by oil companies, more price gouging by oil companies, more
record profits to the oil companies. In fact, this bill deprives the
Federal treasury of $170 billion, further deepening our deficit. The
government is subsidizing the oil companies, who are gouging the
public, taking huge profits, while exploiting natural resources which
belong to the people.
{time} 1430
Then the oil companies refuse to pay to the government the royalties,
which is why the Markey amendment is so important. You have to look at
what this bill is going to do in permitting the opening up of six
million acres for drilling of oil and gas. It, in effect, creates a
transfer of wealth from the people of the United States to the oil
companies, a transfer of wealth in terms of destruction of the
environment. We are subsidizing the oil company's destruction of the
environment. A transfer of wealth in terms of diminishing the health of
the people of the United States. With all the environmental pollution
that causes people's help to be degraded, well, guess what? That is a
subsidy that they pay to the oil companies, and the oil companies make
a profit on that.
We are ruining our planet. We are ruining our Nation because of
corporate control of our energy resources. It is time to stop this
bill, which is called the Gulf of Mexico Energy Security Act, folded
into a larger bill. We need to stand up for clean energy. We need to
stand up for the future of America and stand up for our planet.
Mr. THOMAS. Mr. Speaker, the Chair appreciates the vigor of the
gentleman from Ohio on 6 lines out of an 11-page amendment.
The Chair now recognizes the gentleman from Pennsylvania (Mr.
Peterson) for 1\1/2\ minutes.
Mr. PETERSON of Pennsylvania. Mr. Speaker, I thank the gentleman for
his leadership and knowledge that he has brought to this committee. It
will be missed.
The most important part of this bill was just discussed, the energy
portion of this bill. This starts, for the first time, opening up some
energy for America.
It is interesting, Mr. Markey has talked about $170 billion thievery
of our resources; 12.5 percent, or $55 million will go into the land
and water conservation fund, if we produce it; and $225 billion will go
into the treasury, if we produce the energy.
America, for the last 5 years, has had the highest energy prices in
the world. And our homeowners are paying more to heat their homes than
Canada, South America, Europe.
Our small businesses are paying the highest energy prices in the
world, and our corporations are leaving this country. Petrochemical is
moving. The best jobs we have left. Why? They use huge amounts of
energy.
Fertilizer. Fifty percent of the fertilizer industry has left in the
last 2 years, and our farmers will be buying Russian fertilizer to grow
corn to make ethanol. Does that make sense?
Energy is the linchpin of the future of America's economy and the
working people of this country having jobs. And the reason oil
companies make excessive profits, when you shorten the supply of
energy, the price goes up. And Congress is the reason we don't have
adequate energy in this country. And many that we have heard today are
the main speakers. And when you shorten the supply, the price goes up.
And the oil companies who already own the inventories all over the
world, the cheapest place to produce energy is in other countries, but
when you produce it here, you create wealth in America for Americans
and make it affordable for businesses to stay here and grow.
Mr. RANGEL. Mr. Speaker, I reserve the balance of my time.
Mr. MARKEY. Mr. Speaker, I only have one speaker remaining.
Mr. THOMAS. Mr. Speaker, would you indicate the time remaining for
each manager?
The SPEAKER pro tempore (Mr. Forbes). The gentleman from California
has 3\1/2\ minutes. The gentleman from New York has 3 minutes, and the
gentleman from Massachusetts has 2 minutes.
Mr. THOMAS. And would the Speaker indicate who has the right to
close?
The SPEAKER pro tempore. The gentleman from California has the right
to close.
Mr. THOMAS. Mr. Speaker, the chairman reserves the time.
Mr. RANGEL. I would just ask the chairman whether he is going to be
the last speaker, then I can just use whatever time I have.
Mr. THOMAS. I would tell the gentleman that I have the chairman of
the Energy and Commerce Committee and the chairman of the Ways and
Means Committee.
Mr. RANGEL. Well, I reserve. I would just like to be able to close on
my side.
Mr. THOMAS. Is the gentleman indicating that the gentleman from New
York is the last speaker under his time control?
Mr. RANGEL. Yes.
Mr. THOMAS. I thank the gentleman.
Does the gentleman from Massachusetts indicate that he is the last
speaker under his time? I thank the gentleman.
The Chair now recognizes the gentleman from Texas, the chairman of
the Energy and Commerce Committee, Mr. Barton, for 2 minutes.
Mr. BARTON of Texas. Mr. Speaker, I thank the distinguished chairman
of the Ways and Means Committee, and I thank my distinguished friends
on the other side of the aisle for their strong leadership on these
issues in this debate.
Mr. Speaker, I rise in strong support of H.R. 6111, the Tax Relief
and Health Care Act of 2006. I want to especially thank full committee
Chairman Thomas, Subcommittee Chairman Nancy Johnson of the Ways and
Means Subcommittee, and Subcommittee Chairman Nathan Deal of my Health
Committee for their leadership on this legislation. It has been an
honor to work with all of these folks over the years on the issues, and
I am glad that we have some resolution that will help in the years to
come.
The legislation before us would ensure continued beneficiary access
to quality health issues. This legislation provides significant relief
for payment cuts that would have gone into effect for physician
services for 2007, and does promote appropriate quality care.
The Energy and Commerce Committee has held a number of hearings to
examine how we pay physicians, what we need to think about when we talk
about how to pay physicians tomorrow, and how we protect the taxpayer
from being billed for unnecessary services. We have heard about flaws
in the current physician payment system, and I think it needs to be
structurally reformed. Unfortunately, the bill before us does not. We
do not have the depth and scope to do that. But we at least hold our
physicians harmless in terms of expected cuts that they would have
taken otherwise. Hopefully, in the next Congress we can work a
bipartisan basis to come up with a permanent solution to some of these
physician payment issues.
It is important to fix the problems with physician payment once and
for all. The legislation before us today does provide a stabilizing
period for physicians. It fills the hole in payments for next year,
provides a bonus for those physicians that would report data on quality
measures. That is an
[[Page H9069]]
important first step, in my opinion. It also helps ensure beneficiary
access to quality health care.
I rise today in support of this bill. I hope that the House will pass
it and send it to the Senate and that the Senate will also pass it.
Again, I want to thank Chairman Thomas for his leadership. It will be
a different Congress in the next Congress without him here in person,
but he will always be with us in spirit, and I really, really support
the many things that he has done to improve America during his tenure
as chairman of the Ways and Means Committee.
Mr. BARTON of Texas. Mr. Speaker, I rise today in strong support of
H.R. 6111, the Tax Relief and Health Care Act of 2006. I want to thank
Chairmen Thomas, Johnson, and Deal for their leadership on this
legislation. I want to specifically thank Chairmen Thomas and Johnson
for their leadership over the years on health care issues, particularly
the issue of physician payment. It has been an honor to work with you
on these issues.
This legislation will help ensure continued beneficiary access to
quality health care. This legislation provides significant relief for
payment cuts for physician services for 2007 and promotes appropriate,
quality care. This year the Energy and Commerce Committee held a number
of hearings to closely examine how we pay physicians, what we need to
think about when we talk about how to pay physicians tomorrow, and how
we protect the taxpayer from being billed for unnecessary services. We
heard about the flaws in the current physician payment system that may
contribute to overuse of physician services. We heard about the promise
of a system that more fairly pays physicians for the necessary services
they provide--those that reflect the best quality and efficient care
that a physician can provide for any particular patient.
It is important to fix the problems with physician payment once and
for all. I believe the legislation today provides an important
stabilizing period for physicians. It fills the hole in payments for
next year and provides a bonus for those physicians that report data on
quality measures. It helps ensure beneficiary access to quality health
care. It helps physicians work with us to develop a better payment
system, one that provides the right incentives for care rather than the
wrong incentives for overuse, and one that recognizes that there are
savings accrued when chronic care is managed effectively.
I rise today in support of this bill. In addition to providing help
in stabilizing physician payment, this bill extends many important
payment provisions that affect access to health care, particularly in
rural areas, such as therapy and dialysis services. I urge my
colleagues to vote for this bill.
Mr. RANGEL. Mr. Speaker, as we close this debate, I agree it will be
a different Congress, and I will sincerely miss the spirited debate
from the distinguished gentleman from California who has served the
committee and served the Congress and served this country so well. And
I am just bothered that he is disturbed about the lateness of the
amendment which comes to the floor, but, of course, you cannot amend
anything until you get it, and this just came to the floor this
morning.
Many of the issues and extenders in this bill are long overdue, and I
certainly encourage people to support the bill. But the bill would be
strengthened if indeed it excluded the provision that has been debated
and will come up in the amendment as relates to the gulf opportunity
zone property.
In addition to that, most of us would agree that if there is one
provision in the Tax Code, a burden that Republicans, conservatives,
Democrats, Republicans, can agree to that should be removed is the
alternative minimum tax. Nobody ever intended for these 23 million
people to be shoved into a tax bracket that they didn't deserve. And
since it is not included in the extenders, for reasons which I don't
know, it would seem to me that people would have an opportunity, in
this amendment offered by the distinguished gentleman from
Massachusetts, to do that and, at the same time, strip from the
provision the offending provisions as relates to the Gulf States.
And lastly, those of you that were kind enough to support the city
and State of New York during the trying 9/11 experience would know that
at one time we had passed a provision that would allow us, under the
New York liberty bond provisions, to provide a tax credit for the
transportation infrastructure. I want to thank the chairman for trying
so hard to see that that provision would be included in this bill. But,
because of reasons and problems that we have had on the other side,
that provision is omitted. However, it will be included in the
amendment, and I am convinced that the base bill, coupled with the
amendment, would be a better piece of legislation.
I know we have other issues on the floor, and this is not the time to
say farewell to the chairman, but as it relates to at least this part
of our debate, Mr. Speaker, I will yield back the balance of my time.
Mr. MARKEY. Mr. Speaker, I yield myself the balance of my time.
The amendment which we are about to consider does not prohibit
drilling in any of this new land. The amendment we are about to debate
does not prohibit drilling in any of the new land which is authorized
to be drilled in. What the amendment says is this: is that the oil and
gas companies that received leases over the last 10 years where they
pay no royalties whatsoever, and that has been determined, as a result,
deprived the American taxpayer of between 20 and $60 billion worth of
royalties, which they are entitled to as taxpayers, will be
renegotiated by the oil companies that want to drill in this new land
in the Gulf of Mexico. That is all it does. So anyone who is listening
to this, this amendment will not prohibit drilling here. All it says is
that where these massive, tens of billions of dollars of windfall
profits are falling into the pockets of oil and gas companies under
these oil leases, that these oil and gas companies do not have the
privilege of coming into these new leases. However, any other oil
company, any other gas company, they can go right into this Gulf of
Mexico area and drill.
So for Mr. Peterson, or anyone else, it has nothing to do with it.
The question for you, Mr. Peterson, the question for the other Members
is: Do you want to recollect these other royalties? Or if the price of
oil goes to 30, 40, 50, 60, 70, $80 a barrel, do you want the oil and
gas industry to pay any royalties at all? Because right now, they
don't. So if you want all the revenues to go to them, nothing to go to
the taxpayer, then, fine. Vote against the Markey amendment. But if you
want to open up the lands in the gulf, let the oil industry come in,
but to make sure that they pay on their old leases a fair share of the
dues to live in this country, because it is a massive part of the
revenues that we use to fund our defense, then you vote ``yes'' on the
Markey amendment.
Mr. THOMAS. Mr. Speaker, I want to refocus our Members. We are not on
the Markey amendment. The Markey amendment will be presented following
the conclusion of the discussion on the underlying bill.
Mr. Speaker, the Nonpartisan Joint Committee on Taxation has made
available to the public a technical explanation of the bill. This
technical explanation expresses the committee's understanding and
legislative intent behind this important legislation.
Mr. THOMAS. Mr. Speaker, the nonpartisan Joint Committee on Taxation
has made available to the public a technical explanation of the bill.
This technical explanation expresses the Committee's understanding and
legislative intent behind this important legislation.
Mr. Speaker, in keeping with the spirit of H. Res. 1000, which the
House passed this year to reform the legislative process, I note that
the Joint Committee on Taxation has identified 2 provisions of H.R.
6408, introduced yesterday, as ``earmarks'' under the terms of that
resolution. These provisions also appear in the amendment to H.R. 6111
which the House will consider today. A copy of the Joint Committee on
Taxation's opinion letter is available for Members to review if they
wish.
The identified provisions are Title I's Section 414. Modification of
special arbitrage rule for certain funds made permanent, and Section
211 of Division C, Certain related persons and successors in interest
relieved of liability if premiums prepaid. Section 414 was requested by
Congressman Kevin Brady (R-TX). Section 211 is part of a comprehensive
mining reform proposal requested by Senators Rick Santorum (R-PA) and
Max Baucus (D-MT).
H.R. 6408's Division B--Medicare and Other Health Provisions,
contains an earmark. Section 111, Clarification of hospice satellite
designation, was requested by Senator Reid (D-NV). The amendment also
contains this provision.
In addition, Division C, Title I, Gulf of Mexico Energy Security
requested by Congressman Bobby Jindal (R-LA) and Title III, White Pine
County Conservation, Recreation and Development requested by Senator
Harry
[[Page H9070]]
Reid (D-NV) have been identified as containing probable earmarks.
December 8, 2006.
Hon. William M. Thomas,
Chairman, Committee on Ways and Means, 1102 Longworth House
Office Building, Washington, DC.
Dear Chairman Thomas: House Resolution 1000 provides that
the staff of the Joint Committee on Taxation identify any tax
earmark in a bill carrying a tax measure reported by the Ways
and Means Committee or in a conference report to accompany a
bill carrying a tax measure. You requested that we review the
language of H.R. 6408, the ``Tax Relief and Health Care Act
of 2006'' as introduced in the House of Representatives on
December 7, 2006, and the House Amendment to the Senate
amendment to H.R. 6111 (``An Act to amend the Internal
Revenue Code of 1986 to provide that the Tax Court may review
claims for equitable innocent spouse relief and to suspend
the running on the period of limitations while such claims
are pending'') scheduled for consideration by the House on
December 8, 2006, to identify any provisions which would
satisfy the tax earmark standard of House Resolution 1000, if
applicable.
In response to your request, the staff of the Joint
Committee on Taxation has identified two provisions in each
piece of legislation that would qualify as tax earmarks under
House Resolution 1000, were they included in a bill reported
by the Ways and Means Committee or contained in a conference
report. The two provisions, which are the same in both bills,
are: (1) the provision to make permanent the modification of
special arbitrage rules for the Texas Permanent University
Fund (sec. 414 of Division A of each bill); and (2) the
provision of the Surface Mining Control and Reclamation Act
Amendments of 2006 allowing release of joint and several
liability in the case of prepayment of liabilities to the
Combined Benefit Fund, section 9711 individual employer plan,
or 1992 UMWA benefit plan and modifying of the definition of
successor in interest (sec. 211 of Division C of each bill).
Sincerely,
Thomas A. Barthold,
Acting Chief of Staff.
____
December 8, 2006.
Hon. Bill Thomas,
Chairman, Committee on Ways and Means, House of
Representatives, 1102 Longworth House Office Building,
Washington, DC.
Dear Chairman Thomas: In compliance with H. Res. 1000 as
passed the House of Representatives on September 14, 2006,
the Committee finds that the amendment to H.R. 6111 contains
no earmarks within the jurisdiction of the Committee on
Energy and Commerce.
Sincerely,
Joe Barton,
Chairman.
____
December 8, 2006.
Hon. J. Dennis Hastert,
Speaker, House of Representatives, H 232 Capitol, Washington,
DC.
Dear Mr. Speaker: I have just reviewed the proposed
amendment to H.R. 6111, to amend the Internal Revenue Code of
1986 to provide that the Tax Court may review claims for
equitable innocent spouse relief and to suspend the running
on the period of limitations while such claims are pending.
Division C unexpectedly contains several provisions within
the jurisdiction of the Committee on Resources. I have been
asked to review these extensive provisions (126 pages) under
severe time limits to determine whether they contain any
earmarks as defined under House Resolution 1000.
Without the opportunity to question the authors of these
provisions, it is difficult to determine their effect on the
public lands and resources of the United States. Especially
troubling is the reference to maps in the context of land
sales, exchanges and special use designations. Neither myself
or any of my staff have seen these maps or reviewed the
conditions of these transactions. Most importantly, none of
these provisions have been reviewed by the Congressional
Budget Office to determine the budgetary effect of their
implementation. With these caveats, here is my assessment
whether these provisions constitute earmarks under the House
Resolution 1000.
Division C--Other Provisions
Title III--White Pine County Conservation, Recreation and
Development. Many provisions of this Title appear to provide
authority for a grant, contract or other expenditure with or
to a non-federal entity, most specifically, White Pine
County, Nevada; Washoe County, Nevada; the State of Nevada;
the Ely Shoshone Tribe; the Eastern Nevada Landscape
Coalition; the Great Basin Institute (whatever these are).
Because of the hundreds of thousands of acres of public
lands involved in the land sales, wilderness designation and
other transactions authorized by this title, and the lack of
maps or other information, I cannot determine with
specificity the fiscal impact of Title III. As a consequence,
we have no way of determining whether this constitutes sound
land management policy which we would support. In addition,
because I was not involved in the writing of this provision,
I do not know who the requestor was but this language has not
been reported by the Committee on Energy and Natural
Resources, the Committee on Resources or considered by the
Senate or House.
I am extremely disappointed that the committee of
jurisdiction was not consulted regarding the inclusion of
these provisions. Their ill-advised inclusion undermines
valuable natural resources, cheats taxpayers out of their
investment in our public lands and benefits special interest
groups on a completely unprecedented scale.
Sincerely,
Richard W. Pombo,
Chairman.
GENERAL LEAVE
Mr. THOMAS. Mr. Speaker, I ask unanimous consent that all Members
have 5 legislative days in which to revise and extend their remarks and
to include extraneous material on the subject of the bill under
consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from California?
There was no objection.
Mr. THOMAS. Mr. Speaker, I want to thank my friend from New York for
the kind comments that he made. I would like to reference his statement
about the other side. For those of you who may not have understood what
he meant, the other side is not the other side of Jordan. It is the
other side of the Capitol. Oftentimes in dealing with the other side of
the Capitol, it feels like you have crossed over the other side of
Jordan in trying to make sure various things happen.
There are a number of items, and I guess at some point, your entire
presentation oftentimes in dealing with Congress was woulda, coulda,
shoulda. And that is fine to debate woulda, coulda, shoulda, which is
basically process.
We have reached a point where, through great difficulty, the House
and Senate have agreed on a number of important measures to extend
benefits and to at least keep open the opportunity to do additional
items.
{time} 1445
We happened to reach agreement at the very end of the session. The
point I want to underscore is, we have reached agreement. The question
will be on whether we decide to support that agreement or not support
the agreement. I do appreciate all the time consumed in complaining
about how we got there.
I have counseled my friends on this side that when they become the
minority, I will provide them with all the yellow pages and the copies
of the other side while they have been in the minority about the
``woulda coulda shoulda.'' Right now, it is about substance, it is
about doing something, and we will have the vote on this measure
following the debate on the Markey amendment.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore (Mr. Forbes). All time for debate has
expired.
Pursuant to House Resolution 1099, the previous question is ordered.
Amendment Offered by Mr. Markey
Mr. MARKEY. Mr. Speaker, I offer an amendment.
The Clerk read as follows:
Amendment offered by Mr. Markey:
Amend the House amendment by striking section 123 of title
I of division A and inserting the following:
SEC. 123. SPECIAL RULE FOR ELECTIONS UNDER EXPIRED
PROVISIONS.
(a) Research Credit Elections.--In the case of any taxable
year ending after December 31, 2005, and before the date of
the enactment of this Act, any election under section
41(c)(4) or section 280C(c)(3)(C) of the Internal Revenue
Code of 1986 shall be treated as having been timely made for
such taxable year if such election is made not later than the
later of April 15, 2007, or such time as the Secretary of the
Treasury, or his designee, may specify. Such election shall
be made in the manner prescribed by such Secretary or
designee.
(b) Other Elections.--Except as otherwise provided by such
Secretary or designee, a rule similar to the rule of
subsection (a) shall apply with respect to elections under
any other expired provision of the Internal Revenue Code of
1986 the applicability of which is extended by reason of the
amendments made by this title.
SEC. 124. EXTEND ALTERNATIVE MINIMUM TAX EXEMPTION AMOUNT FOR
2007.
(a) In General.--Subparagraphs (A) and (B) of section
55(d)(1) (relating to exemption amount for taxpayers other
than corporations) are each amended by inserting ``or 2007''
after ``2006''.
(b) Effective Date.--The amendments made by this section
take effect on October 1, 2008, but once in effect shall
apply to taxable years beginning after December 31, 2006.
SEC. 125. RESTRUCTURING OF NEW YORK LIBERTY ZONE TAX CREDITS.
(a) In General.--Part I of subchapter Y of chapter 1 is
amended by redesignating section 1400L as 1400K and by adding
at the end the following new section:
[[Page H9071]]
``SEC. 1400L. NEW YORK LIBERTY ZONE TAX CREDITS.
``(a) In General.--In the case of a New York Liberty Zone
governmental unit, there shall be allowed as a credit against
any taxes imposed for any payroll period by section 3402 for
which such governmental unit is liable under section 3403 an
amount equal to so much of the portion of the qualifying
project expenditure amount allocated under subsection (b)(3)
to such governmental unit for the calendar year as is
allocated by such governmental unit to such period under
subsection (b)(4).
``(b) Qualifying Project Expenditure Amount.--For purposes
of this section--
``(1) In general.--The term `qualifying project expenditure
amount' means, with respect to any calendar year, the sum
of--
``(A) the total expenditures paid or incurred during such
calendar year by all New York Liberty Zone governmental units
and the Port Authority of New York and New Jersey for any
portion of qualifying projects located wholly within the City
of New York, New York, and
``(B) any such expenditures--
``(i) paid or incurred in any preceding calendar year which
begins after the date of enactment of this section, and
``(ii) not previously allocated under paragraph (3).
``(2) Qualifying project.--The term `qualifying project'
means any transportation infrastructure project, including
highways, mass transit systems, railroads, airports, ports,
and waterways, in or connecting with the New York Liberty
Zone (as defined in section 1400K(h)), which is designated as
a qualifying project under this section jointly by the
Governor of the State of New York and the Mayor of the City
of New York, New York.
``(3) General allocation.--
``(A) In general.--The Governor of the State of New York
and the Mayor of the City of New York, New York, shall
jointly allocate to each New York Liberty Zone governmental
unit the portion of the qualifying project expenditure amount
which may be taken into account by such governmental unit
under subsection (a) for any calendar year in the credit
period.
``(B) Aggregate limit.--The aggregate amount which may be
allocated under subparagraph (A) for all calendar years in
the credit period shall not exceed $1,750,000,000.
``(C) Annual limit.--
``(i) In general.--The aggregate amount which may be
allocated under subparagraph (A) for any calendar year in the
credit period shall not exceed the sum of--
``(I) the applicable limit, plus
``(II) the aggregate amount authorized to be allocated
under this paragraph for all preceding calendar years in the
credit period which was not so allocated.
``(ii) Applicable limit.--For purposes of clause (i), the
applicable limit for any calendar year is--
``(I) in the case of calendar years 2007 through 2016,
$100,000,000,
``(II) in the case of calendar year 2017 or 2018,
$200,000,000,
``(III) in the case of calendar year 2019, $150,000,000,
``(IV) in the case of calendar year 2020 or 2021,
$100,000,000, and
``(V) in the case of any calendar year after 2021, zero.
``(D) Unallocated amounts at end of credit period.--If, as
of the close of the credit period, the amount under
subparagraph (B) exceeds the aggregate amount allocated under
subparagraph (A) for all calendar years in the credit period,
the Governor of the State of New York and the Mayor of the
City of New York, New York, may jointly allocate to New York
Liberty Zone governmental units for any calendar year in the
5-year period following the credit period an amount equal
to--
``(i) the lesser of--
``(I) such excess, or
``(II) the qualifying project expenditure amount for such
calendar year, reduced by
``(ii) the aggregate amount allocated under this
subparagraph for all preceding calendar years.
``(4) Allocation to payroll periods.--Each New York Liberty
Zone governmental unit which has been allocated a portion of
the qualifying project expenditure amount under paragraph (3)
for a calendar year may allocate such portion to payroll
periods beginning in such calendar year as such governmental
unit determines appropriate.
``(c) Carryover of Unused Allocations.--
``(1) In general.--Except as provided in paragraph (2), if
the amount allocated under subsection (b)(3) to a New York
Liberty Zone governmental unit for any calendar year exceeds
the aggregate taxes imposed by section 3402 for which such
governmental unit is liable under section 3403 for periods
beginning in such year, such excess shall be carried to the
succeeding calendar year and added to the allocation of such
governmental unit for such succeeding calendar year. No
amount may be carried under the preceding sentence to a
calendar year after 2026.
``(2) Reallocation.--If a New York Liberty Zone
governmental unit does not use an amount allocated to it
under subsection (b)(3) within the time prescribed by the
Governor of the State of New York and the Mayor of the City
of New York, New York, then such amount shall after such time
be treated for purposes of subsection (b)(3) in the same
manner as if it had never been allocated.
``(d) Definitions and Special Rules.--For purposes of this
section--
``(1) Credit period.--The term `credit period' means the
15-year period beginning on January 1, 2007.
``(2) New york liberty zone governmental unit.--The term
`New York Liberty Zone governmental unit' means--
``(A) the State of New York,
``(B) the City of New York, New York, and
``(C) any agency or instrumentality of such State or City.
``(3) Treatment of funds.--Any expenditure for a qualifying
project taken into account for purposes of the credit under
this section shall be considered State and local funds for
the purpose of any Federal program.
``(4) Treatment of credit amounts for purposes of
withholding taxes.--For purposes of this title, a New York
Liberty Zone governmental unit shall be treated as having
paid to the Secretary, on the day on which wages are paid to
employees, an amount equal to the amount of the credit
allowed to such entity under subsection (a) with respect to
such wages, but only if such governmental unit deducts and
withholds wages for such payroll period under section 3401
(relating to wage withholding).
``(e) Reporting.--The Governor of the State of New York and
the Mayor of the City of New York, New York, shall jointly
submit to the Secretary an annual report--
``(1) which certifies--
``(A) the qualifying project expenditure amount for the
calendar year, and
``(B) the amount allocated to each New York Liberty Zone
governmental unit under subsection (b)(3) for the calendar
year, and
``(2) includes such other information as the Secretary may
require to carry out this section.
``(f) Guidance.--The Secretary may prescribe such guidance
as may be necessary or appropriate to ensure compliance with
the purposes of this section.
``(g) Termination.--No credit shall be allowed under
subsection (a) for any calender year after 2026.''.
(b) Termination of Certain New York Liberty Zone
Benefits.--
(1) Special allowance and expensing.--Section
1400K(b)(2)(A)(v), as redesignated by subsection (a), is
amended by striking ``the termination date'' and inserting
``the date of the enactment of the Extension of Tax Relief
Act of 2006 or the termination date if pursuant to a binding
contract in effect on such enactment date''.
(2) Leasehold.--Section 1400K(c)(2)(B), as so redesignated,
is amended by striking ``before January 1, 2007'' and
inserting ``on or before the date of the enactment of the
Extension of Tax Relief Act of 2006 or before January 1,
2007, if pursuant to a binding contract in effect on such
enactment date''.
(c) Conforming Amendments.--
(1) Section 38(c)(3)(B) is amended by striking ``section
1400L(a)'' and inserting ``section 1400K(a)''.
(2) Section 168(k)(2)(D)(ii) is amended by striking
``section 1400L(c)(2)'' and inserting ``1400K(c)(2)''.
(3) The table of sections for part I of subchapter Y of
chapter 1 is amended by striking ``1400L'' and inserting
``1400K''.
(d) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to periods
beginning after September 30, 2008.
(2) Subsection (b).--The amendments made by subsection (b)
shall take effect as if included in section 301 of the Job
Creation and Worker Assistance Act of 2002.
SEC. 126. LIMITATION ON AWARD OF LEASES TO HOLDERS OF CERTAIN
EXISTING DEEP WATER LEASES.
No lease may be issued under title I of division C of this
Act to any lessee under an existing lease issued by the
Department of the Interior pursuant to the Outer Continental
Shelf Deep Water Royalty Relief Act (43 U.S.C. 1337 note),
where such existing lease is not subject to limitations on
royalty relief based on market price.
Mr. MARKEY (during the reading). Mr. Speaker, I ask unanimous consent
that the amendment be considered as read and printed in the Record.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Massachusetts?
Mr. THOMAS. Mr. Speaker, reserving the right to object, I believe
perhaps we ought to proceed in the reading of the amendment.
The SPEAKER pro tempore. The Clerk will read.
The Clerk continued to read the amendment.
Mr. THOMAS (during the reading). Mr. Speaker, I believe the point has
been made that the amendment goes on for another 9 pages like that and
doesn't reach the OCS point.
Mr. Speaker, I withdraw my reservation of objection.
The SPEAKER pro tempore. Is there objection to dispensing with the
reading?
There was no objection.
The SPEAKER pro tempore. Pursuant to House Resolution 1099, the
gentleman from Massachusetts (Mr. Markey) is recognized for 5 minutes.
Mr. MARKEY. Mr. Speaker, I yield myself 1 minute.
[[Page H9072]]
Mr. Speaker, again, the Markey amendment does nothing about drilling
in the new areas that are opened up in this bill. What the amendment
says is that on all of those leases in the 1990s that had no royalty
payments required at all, that finally if these oil and gas companies
want to move into this new oil and gas gold rush in the Gulf of Mexico,
they have to renegotiate those old contracts, those windfall profits,
that 20 to $60 billion that could be used for the defense of our
country, to reduce the deficit or for any other purposes.
This is a very simple amendment, and what it does is it mirrors what
we voted on in May of this year when 252 Members of the House voted to
force these oil and gas companies to finally play their role in
contributing to the balancing of the budget. Otherwise, the oil
companies are going to continue to just tip the American taxpayer
upside down.
Mr. Speaker, I reserve the balance of my time.
The SPEAKER pro tempore. The gentleman cannot reserve his time.
Mr. MARKEY. Mr. Speaker, I yield 2 minutes to the gentleman from New
York (Mr. Rangel).
Mr. RANGEL. Mr. Speaker, I just want to share with the chairman that
I recognize his concern that he got the amendment too late. I am
surprised that he is opposing it, because I know that the content of
the amendment, even though the procedure may not have been exactly as
he would like, were things that he had previously supported. So it
would seem to me that those of us who support the base bill, the
amendment is only offered to improve upon that, even though it just
excludes only one provision which is in this, which the gentleman from
Massachusetts has spoken eloquently on, and I think even there the
chairman would agree that it might be a better bill if that was
excluded.
I do hope, as I am voting for the bill, that we might have a chance
for those who are here and those who are listening to recognize that 23
million taxpayers are being held hostage by the alternative minimum
tax. We have had ample opportunity to correct that, but coming from a
Congress that most of us are against the tax increases, it just seems
to me would be inconsistent with the past rhetoric, having the
opportunity to remove this tax increase, which is certainly what it
would be if we don't extend the relief from the alternative minimum tax
for all of these people who never were intended to pay this tax.
So I think it would be a good time to show the bipartisanship in
being for this substantial tax cut, or at least to prevent a tax
increase, if we supported this amendment, at the same time to support
the spirit of the reason in which this great Congress came to the
assistance--
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. MARKEY. Mr. Speaker, how much time do I have remaining?
The SPEAKER pro tempore. Two minutes remaining.
Mr. MARKEY. I apologize to the gentleman. I only have 1 minute to
give to the gentleman from New York (Mr. Hinchey) at this time.
I am now advised that the gentleman from New York (Mr. Hinchey) wants
to yield his minute to the gentleman from New York (Mr. Rangel).
Mr. RANGEL. I have completed. I yield back to the gentleman from
Massachusetts.
I am just saying that we in New York thank you for the generosity
that you have, and we just hope that it is not taken back by refusing
to support this amendment, where we can receive the tax credit for our
transportation.
Mr. MARKEY. Mr. Speaker, I yield myself the remainder of the time and
that is again to make the point that this amendment is central to the
reclaiming of the $60 billion which the oil and gas industry has
escaped in paying for drilling on the public lands of the United
States. This is like Teapot Dome in the 1920s. They don't pay
royalties. They have escaped payment for the use of the oil and gas for
the American people.
This isn't their oil and gas; it is ours. This amendment just says
that if they want to drill in the Gulf of Mexico in this new land, they
have got to renegotiate these old contracts where they don't pay any
royalties at all. At $40, $50, $60, $70, $80 a barrel the American
taxpayer is paying at the pump, they don't get any tax relief when they
use American oil and gas from the American public lands.
Vote ``aye'' for the Markey-Hinchey amendment. It is the key to
ensuring that this bill has a fiscally sound core at its heart.
Mr. THOMAS. Mr. Speaker, I rise in opposition to the amendment.
The SPEAKER pro tempore. The gentleman from California is recognized
for 5 minutes.
Mr. THOMAS. I do think it is important to note there are a number of
items in the bill, not just the Outer Continental Shelf. As was
indicated by the gentleman from Massachusetts and indicated by the
gentleman from New York, there is an alternative minimum tax provision
in this amendment. One of the things that the Democratic leadership has
said, since prior to the election is, that if they were elected, if
they were chosen, if they were going to be dealing with items that cost
money, they were going to submit themselves to the so-called PAYGO
rules. PAYGO rules are exactly what it sounds like: you pay as you go.
I find it ironic that there is this great pressure to move this
amendment now before they do come into the majority, because the
alternative minimum tax provisions of this amendment have no PAYGO
requirement.
What, in fact, they have is spend without covering the costs, and so
I understand the urgency to get this done right now so that they don't
have to follow the commitment that they have made.
Boy, is that typical. In terms of the railroad bonds, I will repeat,
in a personal conversation with the Democratic leader of the Senate, he
asked me to make sure, not withstanding previous support and structure
that we were dealing with, in this extremely fragile measure, being
carried in an unusual way to make sure that we can send it to the
President, notwithstanding whether you believe the railroad bond
provision has merit or doesn't have merit, it cannot be added at this
time or you will lose the measure. I personally will put my trust in
the judgment of the Democratic leader of the Senate.
Finally, on OCS. As I said to the gentleman from Massachusetts, in
another time, in another place, in another circumstance for largely the
same reason that I mentioned, we have to correct this. I appreciate it
has been going on for 10 years. We do understand it was signed into law
by President Clinton. I guess my question to you is, if it has been
going on for 10 years, and you take over this place in less than a
month, and you have 100-day priority structure, 100-hour structure,
excuse me, were you not able to find room on the 100-hour structure to
do this? It sounds to me, based upon the strength and the merit of your
arguments, this would be number 1, 2 or 3 on the 100 hours.
Because in that same conversation that I had with the Democratic
leader in the Senate, he said, Bill, please, we cannot have this added
to the measure. It will split the Senate. We are very fragile, trying
to hold ourselves together, notwithstanding the merits of this. Please,
don't put it on this measure.
Time, place, manner, it is 10 years overdue. Can we make it 10 years
and 20 days overdue so that you don't destroy all of the stuff that is
in this bill so that we can get this done and then we turn the floor
over to you in the first 100 hours? I am sure this would be number 1, 2
or 3 based upon the outrage that I think you justifiably present on
this particular issue.
For all those reasons, unwillingness to follow their own rules they
say they are going to follow on PAYGO for an alternative minimum tax,
the fact that we looked at the railroad bonds, there was a bipartisan
bicameral agreement, it was too sensitive at this time, and the fact
that OCS will blow up everything else in this bill, I will ask my
colleagues to vote ``no'' on this amendment so we can vote ``yes'' on
everything else.
Mr. PITTS. Mr. Speaker, I rise today in support of H.R. 6111, which
extends many essential Medicare programs that sustain our seniors every
day and keeps them healthy. I applaud provisions in this bill that
maintain and preserve access to crucial health care services, like
physical therapy, primary care, and
[[Page H9073]]
dialysis treatments. Our seniors should never have to worry about their
access to care. Congress has a responsibility to ensure that our
Medicare program is strong and stable enough to provide services
without impediments or limitations on access.
Unfortunately, I believe Congress on this occasion missed an
opportunity to ensure unfettered access in an increasingly crucial area
of medical practice today: diagnostic imaging. Imaging procedures, like
CT scans, MRIs, ultrasound, PET and Xrays save countless lives each
day; they identify diseases early on, improving outcomes and lowering
costs associated with undiagnosed illness. Seniors rely on brain scans,
cardiac diagnostics and other diagnostic and therapeutic technologies
every day for disease detection and treatment.
Access to those services, however, is threatened by provisions in the
Deficit Reduction Act of 2005, DRA, that make drastic cuts to payments
for these services that are crucial to identifying life-threatening
conditions and guiding diagnostic and therapeutic interventions. The
DRA includes payment reductions, inserted at the last minute of
Congressional negotiations and without any debate in either body, of
between 30 and 50 percent for many of these services performed in
doctors' offices and freestanding clinics, seriously endangering the
viability of those practices, and thus threatening seniors' access to
convenient imaging services outside of the hospital setting.
This year, I introduced legislation, H.R. 5704, the Access to
Medicare Imaging Act of 2006, which would have delayed these cuts for
two years while the Government Accountability Office studies the cuts'
impact on seniors' access to care. I did so because I was especially
concerned that seniors in America's rural areas would face increasingly
longer driving distances for testing when some physician clinics stop
offering these services, and would inevitably be forced to receive
these services in hospitals where longer wait times and higher co-
payments might cause many seniors to forego services altogether. In
short, I introduced H.R. 5704 because I was concerned about patients--
about patients losing their access to life-saving diagnostic services.
Evidently, I was not alone. To date, 142 of my colleagues--from both
sides of the aisle--in the House have signed on as cosponsors of this
critically important legislation.
Unfortunately, the cuts my bill would have temporarily averted go
into effect on January 1, 2007, and I fear that our action here today
to protect access to a number of important Medicare services but not to
preserve access to diagnostic imaging services is an omission with
significant consequences. Without relief from the cuts, many physician
practices that provide high quality diagnostic imaging services will
shrink in size or shut their doors altogether. Hospitals will overload
with patients, and access will suffer. Today's legislation offered a
unique opportunity to prevent these consequences by including language
to delay the looming cuts until further study of their appropriateness
is completed.
While I regret this missed opportunity, I am hopeful that in the
110th Congress a bipartisan group of my colleagues will, once again,
work together to provide open, unfettered access to medically
appropriate services that improve the quality and length of life for
America's seniors.
Mr. WEXLER. Mr. Speaker, I strongly oppose this unconscionable
attempt by the Republican leadership to force passage of a damaging
offshore oil drilling measure by attaching it to an omnibus bill, H.R.
6111. The language contained within this bill, which would open the
eastern Gulf of Mexico to oil and gas exploration, threatens Florida's
delicate ecosystem, places coastal tourism and fishing industries at
economic risk, and does little to address our dependence on fossil
fuels.
If Congress was serious about offering real energy solutions, then we
would be examining the true environmental and economic impacts of
offshore drilling and exploring the use of clean, renewable energy
technologies, increased fuel efficiency, and conservation. Policymakers
should not be strong-armed into supporting legislation that could cause
irreparable harm to our ecosystem and economy.
Mr. Speaker, the American people deserve an open and honest debate on
our Nation's energy policy. I urge my colleagues to reject this bill
and support passage of a comprehensive energy plan that promotes
independence and protects our Nation's resources as well as the health
of our communities.
Mr. DINGELL. Mr. Speaker, I rise today in support of S. 3711, the
Gulf of Mexico Energy Security Act of 2006. I believe this legislation
offers a balanced approach to increasing our energy independence, while
still ensuring the safety of our environment.
I had opposed H.R. 4761, the Deep Ocean Energy Resources Act of 2006,
when it was brought before the House because I believed it was the
wrong way to approach Outer Continental Shelf drilling. It is my strong
belief that if we are going to open Federal waters to leasing and
drilling activities, than these revenues should be dedicated to go to
the Federal Treasury for the betterment of our Nation. Ideally, I
believe that revenues from leasing activities should be dedicated to
conservation funding, as legislation like the Conservation and
Reinvestment Act, which I introduced with Representative Don Young a
few years back would have. Unfortunately, the full scope of our
legislation was never signed into law.
However, S. 3711 offers just that. Fifty percent of revenues from
leasing activities will be designated to the Federal Treasury, and
revenues that will be designated to the gulf producing States are
authorized solely for conservation efforts. This legislation clearly
states that each gulf producing State dedicate their revenues ``only
for 1 or more of the following purposes: projects and activities for
the purposes of coastal protection; mitigation of damage to fish,
wildlife, or natural resource; implementation of a federally-approved
marine, coastal, or comprehensive conservation management plane;
mitigation of the impact of outer Continental Shelf activities through
the funding of onshore infrastructure projects.'' In addition, 12.5
percent of these revenues will be dedicated to the Land and Water
Conservation Fund.
It is clear from the high cost of oil and natural gas today that we
need to explore ways to increase our supply of hydrocarbons. Since the
Low-Income Home Energy Assistance Program, LIHEAP, began in 1981, the
portion of winter heating bills that LIHEAP covers has declined to 8
percent. Benefit levels based on the 1981 value have decreased from
$209 in 1983 to $132 in 2004, causing many seniors on fixed incomes and
low income families to bear the burden of excessive heating bills. If
S. 3711 is enacted, the Minerals Management Service estimated that the
area proposed for drilling contains at least 1.26 billion barrels of
oil and 5.8 trillion cubic feet of natural gas enough natural gas to
heat and cool every home in Michigan for the next for 16 years.
Furthermore, the Congressional Budget Office, CBO, estimates that if S.
3711 is enacted, direct spending of Outer Continental Shelf recipients
would be reduced by $900 million over the 2008-2016 period.
Mr. Speaker, I support S. 3711 today because it proposes a more
limited approach to Outer Continental Shelf drilling plan than the
House version, H.R. 4761. I am pleased that this legislation directs
revenues towards conservation, ensuring that by increasing our domestic
natural gas supply we are not compromising the environmental safety of
our coastal lands in the Gulf of Mexico.
We can all agree that we should be looking for alternative fuels and
renewable energy sources, but our immediate concern should be reducing
the cost of natural gas and oil supplies for those most vulnerable in
our society. I anticipate that the House Energy and Commerce Committee
will look into alternative fuels and renewable energy sources during
the 110th Congress.
Mr. LANGEVIN. Mr. Speaker, I rise today to voice my support for the
many beneficial elements of the Tax Relief and Health Care Act. This
bill includes several greatly needed extensions of tax provisions that
will continue to help middle class families and small businesses to
prosper throughout our Nation.
The measure before us today has many provisions I support, including
extensions of the Research and Development Tax Credit and the Work
Opportunity Tax Credit, the deduction of higher education expenses, and
others. I am a cosponsor of legislation to make the Research and
Development Tax Credit permanent, as it keeps American companies
competitive and provides a strong incentive for businesses to invest in
the future and create jobs. I am also pleased that this bill includes
provisions to help make college more affordable to millions of students
and allow teachers to deduct out-of-pocket expenses.
This bill will also ensure that a pending 5.1 percent cut in Medicare
payments to physicians does not take effect. While I believe we could--
and should--have addressed this issue much earlier, I am pleased that
these cuts will not take effect. I expect that next year, Congress will
take meaningful action to reform and stabilize the Medicare provider
payment system and I pledge to support efforts to that end.
Unfortunately, this legislation also contains language authorizing an
expansion of drilling in certain areas in the Gulf of Mexico. While I
support efforts to improve our overall domestic energy production, we
have not taken the necessary steps to encourage conservation efforts
and energy efficiency programs, preferring instead to rely on oil and
gas exploration. As I have stated in the past, we cannot dig or drill
our way to energy independence. We need a comprehensive and forward-
thinking energy policy that provides affordable energy, encourages the
development of clean and renewable sources, and enhances our Nation's
economy.
While I strongly believe that many of the tax provisions included in
this legislation will significantly strengthen the middle class in our
[[Page H9074]]
country, I am dismayed by the process through which we are considering
this bill. The Republican majority has again waited until the last
minute to bring this legislation to the floor, thereby considerably
hindering our legislative process. In the 110th Congress, I will work
with my colleagues to ensure measures are brought to the floor
according to a process that allows ample time to review and debate
legislation in an open and honest way.
Ms. SEKULA GIBBS. Mr. Speaker, I rise in support of this bill, H.R.
6111--Tax Relief and Health Care Act of 2006.
This bill will open 8.3 million acres in the Gulf of Mexico to new
oil and natural gas production. This bill is more narrow in scope than
the bill that passed the House in June and I believe that more still
needs to be done to increase access to our Nation's oil and natural gas
resources. But this bill is a good step and I am happy to support its
passage.
Folks in my district near Houston, Texas understand the oil and gas
business since Houston has long been headquarters to several of the
world's largest oil and gas producing companies. Unfortunately, today
the U.S. imports nearly 60 percent of our oil from foreign countries
including more than 1 million barrels of crude oil per day from
Venezuela which is run by a socialist who has made no secret of his
dislike of capitalism and his disrespect for our President.
America holds vast resources of oil which can be accessed in an
environmentally friendly manner with today's modern drilling
technology. Reliance on foreign energy sources, if allowed to continue,
will not only undermine our economy and our standard of living but will
weaken our national security as we become more and more dependent on
foreign sources to fulfill our energy needs.
Working Americans do not want to find themselves over a barrel,
especially trapped over a barrel of foreign oil. Working Americans want
energy independence. I do not believe the goals of environmental
protection and energy independence are mutually exclusive but are
actually mutually dependent. I believe that it is critical, now more
than ever, that all domestic sources of energy should be explored
including the Outer Continental Shelf, the Gulf of Mexico, Alaska, and
the Atlantic.
I am also pleased that this bill dedicates 37.5 percent of the newly
generated revenues to coastal States, including Texas, for beach
restoration and 12.5 percent to the Land and Water Conservation Fund
State assistance program. This program funds the creation and upkeep of
local and State parks, open spaces, and resource conservation in all 50
States. Not only will this bill help obtain energy independence, but it
should result in recreation and conservation benefits for the American
people. Over 40,000 local and state park and recreation projects have
been aided by the LWEF in the 40-year history of the program since its
inception in 1965.
Mr. Speaker, I am proud to support passage of H.R. 6111--Tax Relief
and Health Care Act of 2006 and urge my colleagues to join me in voting
in favor of it.
Ms. WOOLSEY. Mr. Speaker, I always tell people that I am from the
most beautiful district in the country, Marin and Sonoma counties,
California. We certainly have some of the most beautiful, pristine, and
untouched coastline I have ever seen. That's why when I think of
supporting an omnibus package today that includes offshore drilling
within an 8.3 million-acre plot of the Gulf Coast, I can't help but
think of what we'd be throwing away just for a 30-day supply of oil and
gas.
In fact, the only way the current leadership can attempt to get this
25-year moratorium on offshore drilling lifted is by tying it together
with other desperately needed provisions in order to try and sweeten
the deal. Research and development tax credits, college tuition
deductions, royalty set-asides for the urgently needed wetlands and
levee restoration projects in Louisiana, and a package to prevent
physician payment cuts next year. These are all perfectly good,
bipartisan bills that should have passed on a number of occasions this
year. In fact, while I'm happy to see that physicians are being spared
a 5 percent cut in payments--I'm nonetheless appalled to see that yet
again, we still have yet to improve their reimbursement formula.
But rather than working to ensure these and other important
provisions are approved before we adjourn, and rather than creating a
real energy policy by providing incentives for conservation and
investing in renewable energy technology, we're having it all jammed
down our throats at the end of a lame-duck session. What's more, deep
within the tax-relief provisions before us today is an increase in the
income eligibility level for recipients of federally funded Washington,
DC private school vouchers. We ought to focus public funds on public
schools, not private school voucher programs. These short-sighted
approaches are getting us nowhere.
This pattern of putting politics over good policy has been typical of
this Republican leadership and many of America's most vulnerable have
suffered for it. Unfortunately Mr. Speaker, I rise in opposition to
this bill today because, while I know of the many good things it
includes, I cannot support opening up any ocean to the often-
irreversible damages associated with offshore drilling.
Mr. McDERMOTT. Mr. Speaker, getting American trade policy right is
important for many reasons. We must aim to provide opportunity for
American businesses and the workers they rely upon, while also
providing opportunity to people in less developed nations.
We have before us a consensus measure that is long overdue. Consensus
building is hard work and too often those in power seek that which is
easy, not that which is best and necessary.
I'm very pleased the bill before us continues the trade benefits
vital to the nations of sub Saharan Africa.
This bill would finally launch a more just trading policy with Haiti,
and bring Vietnam into the community of trading nations that abide by
international rules.
I am pleased this bill continues to provide discretion to the
President to retain competitive need limit waivers under the
Generalized System of Preferences and does not require revocation of
any such waiver currently in effect.
Unfortunately, this bill falls short in some fundamental ways. First,
we should make permanent GSP, not merely extend it temporarily.
The program should also be enhanced to meet the pledge made by the
U.S. Trade Representative to extend duty-free and quota-free treatment
to products produced by workers in poor countries.
At the beginning of this year's session of Congress, President Bush
addressed the Congress and the American people and said, ``In a complex
and challenging time, the road of isolationism and protectionism may
seem broad and inviting--yet it ends in danger and decline.''
The President is right. The bill before us offers a dangerous future
for our dealings with our own hemisphere. It weakens our relationship
with Peru, Colombia, Bolivia and Ecuador. The conditions this bill
imposes upon continued trade benefits for these countries are
unrealistic.
This bill threatens thousands upon thousands of jobs in the Andean
region, feeding a growing and destructive form of populism.
Mr. Speaker, the perfect cannot be the enemy of the good.
I know when the new Congress convenes in just over three weeks, the
troubling components of this bill will be properly addressed, and I
therefore support the bill before us today.
In conclusion, let me say I very much look forward to the new
Congress, when trade policy will be constructed in public, and in
daylight.
I look forward to next year's consideration of policies that aim to
improve the human condition, and are produced by means enabling
consensus, not division.
Mr. GARRETT of New Jersey. Mr. Speaker, I rise today to voice my
support for H.R. 6111, the Tax Relief and Healthcare Act. And, I would
also like to thank Chairman Thomas for all of his hard work both on
this bill and throughout his tenure in Congress and as Chairman of the
Ways and Means Committee.
Mr. Speaker, I am extremely pleased that this bill makes an important
fix to a very urgent Medicare problem that if left unaddressed could
have caused many hospitals--including 7 in New Jersey--to possibly have
to close their doors to those who require that care. By providing an
extension to changes to the hospital wage index classification system,
these hospitals will be able to continue to receive higher Medicare
reimbursement rates and thus avoid real financial jeopardy. Both this
provision and the provision to eliminate the cut of up to 5 percent in
payments to health care providers solve critical healthcare problems
that cannot be put off any longer.
I am also pleased that a number of very important tax relief
extensions were included such as the Research and Development Tax
Credit and state and local sales tax deductions. I only wish that
instead of extending these; we would make them permanent.
Mr. Speaker, I am, however, disappointed to see a number of
miscellaneous provisions included in the bill that Congress has not had
ample time to debate and that cost the taxpayers millions of dollars.
The most egregious of these provisions is the provision regarding the
Abandoned Mine Land Fund. The bill reduces some AML fees and converts
the program from discretionary to mandatory spending. This will
increase the deficit by $3.9 billion over the next 10 years. At a time
when Congress should be looking for ways to reduce out-of-control
mandatory spending, I do not believe this is prudent.
Mr. Speaker, even though I do not support every provision in this
bill, the Medicare fixes and tax relief extensions are critical in
nature and will benefit millions of Americans and I urge my colleagues
to support this bill.
Mr. STARK. Mr. Speaker, I rise today in opposition to the Tax Relief
and Health Care Act
[[Page H9075]]
of 2006. Today's legislation is a perfect example of the reckless
priorities that voters rejected in giving Democrats control of both the
House and Senate. Adding another $45 billion to the deficit is a
fitting last act from Congressional Republicans. They've added
trillions to the debt in the last 6 years and have no remorse about
adding a few billion more on the way out the door.
This bill destroys our environment with expanded offshore drilling in
the Gulf of Mexico, and though not in this bill, California is the next
logical target. It expands school vouchers for Washington, D.C. as part
of the Republican crusade to shift money to private and religious
schools and undermine public education. On the healthcare front, this
bill wastes a billion dollars on health savings accounts for the rich.
It also expands the Medicare Advantage program, adding to the $5.2
billion in annual overpayments taxpayers already cough up to private
insurers.
I am glad that this bill includes a temporary update for physicians,
giving us a little breathing room heading into next year. But we're
still going to have to do some very heavy lifting in order to dig
ourselves out of the $250 billion hole Republicans created by kicking
the can down the road the last few years. In the next Congress, I hope
my colleagues on the other side of the aisle work with me to address
this problem once and for all.
Tax breaks for the rich and new oil for Cheney and the gang--looks
like Republicans really won one for the Gipper today.
Mr. Speaker, I oppose this fiscally irresponsible package and hope
that my colleagues on both sides of the aisle will join me in rejecting
this bill.
Mr. ROYCE. Mr. Speaker, I rise to support H.R. 6111, the Tax Relief
and Health Care Act of 2006.
The bill contains a package of provisions designed to improve Health
Savings Accounts, HSAs. HSAs were enacted by the Medicare Prescription
Drug, Improvement, and Modernization Act of 2003. An HSA is a tax-
exempt account to which tax-deductible contributions may be made by
individuals with a high deductible health plan.
HSAs empower Americans to make informed decisions about their health
care choices. Instead of being tied into a traditional plan that limits
choice, and distances the consumer from the healthcare market, HSAs
allow individuals to take an active role in the choosing how to spend
their money.
This bill will:
Allow rollovers From Health FSAs and HRAs into HSAs;
Repeal the Annual Plan Deductible Limitation on HSA Contributions;
Modify the Cost-of-Living Adjustment;
Expand the Contribution Limitation for Part-Year Coverage;
Modify employer comparable contribution requirements for
contributions made to non-highly compensated employees; and
Allow one-time roll overs from IRAs into HSAs.
Health Savings Accounts help families more easily access quality
health care and save for medical costs. This bill will expand HSAs to
help provide more Americans with health care coverage.
Mrs. JONES of Ohio. Mr. Speaker, I rise in support of this tax
legislation.
H.R. 6111 includes many important provisions for the benefit of the
American economy.
Although I would have preferred a longer extension, this bill extends
for one year:
The R&D Tax Credit, which is a job creator and important to our
domestic manufacturers, keeping them competitive globally;
The Welfare-to-Work and Work-Opportunity Tax Credits, which are
incentives for employers that hire economically disadvantaged
individuals with significant barriers to employment; and
The New Markets Tax Credit, which is important to the economic
revitalization of our urban areas, such as Cleveland, Ohio.
And there are many more important tax provisions that this bill
contains, in particular one which I have worked with Congressmen Mike
Turner and John Boehner and the Ohio delegation in a bipartisan fashion
last year.
It deals with Regional Income Tax Agencies, and it helps
municipalities improve their tax collection.
In my home State of Ohio we have the Regional Income Tax Agency (also
known as RITA), which provides services to collect income tax for 120
municipalities in the state--including the cities of Shaker Heights,
East Cleveland, Beachwood, and others in my district.
However, because their individual populations do not exceed 250,000
people, these cities cannot receive Federal tax information from the
IRS in order to better and more accurately collect local taxes.
This legislation will allow municipalities that are members of
Regional Income Tax Agencies to receive tax information from the IRS.
Ohio RITA has determined that this will have two important economic
benefits to Ohio cities:
1. Identification of delinquent taxpayers, which significantly
enhance tax revenues to RITA municipalities in Ohio to the extent of a
projected $21 million per year, and
2. Streamlining current business processes, thereby reducing costs to
member municipalities.
Additional revenues are exactly what cities in Ohio need as local
governments face tough decisions to cut critical services such as
police and fire protection. These additional funds can now go towards
those key social services, as well as our schools.
That is why I am in favor of this legislation and support its
passage.
However, let me state that I am greatly disappointed that relief from
the Alternative Minimum Tax (AMT) is not in this legislation.
The temporary AMT relief that Congress passed earlier this year
expires at the end of this year, and it is not being extended in this
legislation. That means that without AMT relief 15 million Americans
face a tax increase as they stand to be hit by the AMT next year.
The Republican leadership decided to punt to the Democrats on that
issue. But that is okay, as we Democrats have vowed next year to defuse
the ticking time bomb that is the AMT.
The American people have placed us, Democrats, in the majority for a
reason. They trust us to tackle the important issues that affect
American families--and we will deliver.
Mr. FALEOMAVAEGA. Mr. Speaker, I rise in support of H.R. 6111, the
Tax Relief and Health Care Act of 2006, which includes an extension of
30A tax credits for American Samoa's tuna canneries and protects the
jobs of more than 5,000 cannery workers in the Territory.
As a matter of public record, I thank the Honorable William Thomas,
Chairman of the House Committee on Ways and Means, for his unwavering
support in getting this deal done. Chairman Thomas is a true friend of
American Samoa and has stood by us in our most difficult times. Because
of him, our people have hope for a better future, and for this, I
extend my deepest appreciation to the gentleman from California.
I also thank the Honorable Charles Rangel, Ranking Member of the
House Committee on Ways and Means. Congressman Rangel is also a friend
of American Samoa and has championed our cause on each and every trade
agreement that has come before the U.S. Congress. He also supports our
extension of 30A tax credits and is fully committed to working with us
to implement a long-term tax policy based on the input of all vested
stakeholders, especially our tuna canneries which are our largest
private sector employers.
The possession tax credit offered by the Internal Revenue Code of
1986 has encouraged two U.S. tuna canneries which employ more than
5,150 people or 74 percent of the workforce to remain and invest in
American Samoa. More than 80 percent of American Samoa's private sector
economy is dependent either directly or indirectly on these canneries
and a decrease in production or departure of one or both of the two
canneries in American Samoa could devastate the local economy resulting
in massive layoffs and insurmountable financial difficulties.
For this reason, I again thank Chairman Thomas and Ranking Member
Rangel for supporting my efforts to include an extension of 30A tax
credits for American Samoa in H.R. 6111. Given how serious this issue
is for American Samoa, I also urge my fellow colleagues to vote in
favor of this important bill.
Mr. RAHALL. Mr. Speaker, I would like the Record to show that I am
voting for the pending legislation because it includes a historic
accord to reauthorize the Abandoned Mine Reclamation Program and to
address, in a comprehensive fashion, the pressing need to insure the
long-term financial stability of the funds which finance health care
for members of the United Mine Workers of America.
My views on the OCS Leasing provisions in the pending legislation are
well known. I oppose them.
Yet in this case, the health and safety of coalfield residents, takes
precedence as it always has, and always will, when it comes to how I
discharge my duties.
Mr. McKEON. Mr. Speaker, I rise in support of this legislation and
would like to speak briefly on one of its most meaningful components.
When the topic of school choice is debated in Washington and
elsewhere, we often refer to the lucky lottery of life. A child doesn't
control which family he or she is born into, what economic situations
that family must deal with, or what school he or she is likely to
attend. Yet the result of that ``lucky lottery of life'' often sets a
child on a very specific path through his or her early years--and
beyond.
Each year, not too far from this Capitol building, we witness a
lottery of a different type. The Washington Scholarship Fund, an
organization founded to empower low-income Washington, DC families with
a choice in where they send their children to elementary,
[[Page H9076]]
middle, and high school, hosts an annual picnic where parents,
grandparents, and others stand in line, waiting to enter a lottery of
their own.
The prize? A partial scholarship to a private school in the nation's
capital and a chance for their loved ones to escape some of the
nation's most troubled public schools. It's ironic that each year, for
a limited number of Washington families, one lottery has the potential
to dramatically impact the results of the other.
In 2004, the Washington Scholarship Fund was chosen to manage the
nation's first ever federally-funded K-12 scholarship program, the DC
Opportunity Scholarship Program. This program provides low-income
students and families access to up to $7,500 to cover tuition, fees,
and any transportation expenses at a private elementary or high school
in Washington.
Written by Congress, signed by a Republican President, and embraced
by a Democrat mayor of the District of Columbia, this school choice
program is making a real difference for about 1,800 students this year.
But for some, their participation will be placed at risk if we do not
act today. Due to very small increases in income or changes in family
structure, some participating families now find themselves ineligible
for the scholarships they have received for the last two years. Unless
we increase the income eligibility threshold for renewing scholarship
families that entered the program in its first two academic years from
200 percent to 300 percent of the federal poverty level, some
participating students will no longer be eligible to attend the schools
that they have called home for the last two years.
By raising the income eligibility limit for renewing families, the
average income of Opportunity Scholarship Program families would be
$22,424. So, the program still would serve the low-income population
for which it was initially designed. And this would not cost taxpayers
a single dollar more, since this technical change simply allows
participating students to remain in the program.
Just as importantly, by allowing these students to continue
participating, an ongoing federal evaluation of the program can remain
in place as it was intended. If we don't act, potentially hundreds of
low-income students will be forced from the program but will continue
to be studied as if they could use the scholarship, thereby
compromising the study. For both supporters and opponents of the
program, this study is sure to provide us some meaningful data about
both its successes and shortcomings, and it serves us well to ensure
its results are valid.
Mr. Speaker, this language has passed the Senate Appropriations
Committee already and enjoys bipartisan support. For the good of this
program and the students it serves--students we call neighbors here in
Washington, DC--I urge its passage here in the House as well.
Mr. BLUMENAUER. Mr. Speaker, this bill serves as a reminder why the
American people feel Congress is failing them. It is little more than
an incoherent grab bag of the good and bad. I am disappointed that the
Republicans, in their last act of power, chose to skirt their
responsibilities as lawmakers by sending this bill to the floor at the
last minute and under a rule that does not allow for Members to
thoroughly analyze its contents. Due to a prior engagement in my
district, I was unable to be here to vote on H.R. 6111. But in the end,
there is no good vote for this bill. It is my hope that under
Democratic leadership next year, we will hold ourselves to a higher
standard and refuse to make policy like this.
Had I been present for the vote on the Markey-Hinchey motion to
recommit on the Alternative Minimum Tax and oil royalties, I would have
voted ``aye.''
Ms. JACKSON-LEE of Texas. Mr. Speaker, I rise in support of H.R.
6111, the Tax Relief and Health Care Act of 2006. I do so for three
reasons. First, the bill extends and modifies certain key tax relief
provisions through 2007, which provide much needed relief to working
and middle-class taxpayers.
Second, I believe that among the most urgent challenges confronting
the Nation, none is more important than lessening, and ultimately
ending, America's dependence on foreign energy sources. H.R. 6111
advances this goal in a small but appreciable way by permitting oil and
gas production in an 8.3-million acre area of the Gulf of Mexico, with
37.5 percent of the lease income allocated to the Gulf Coast States
closest to the drilling area, excluding the Florida gulf coast.
Third, the bill blocks the scheduled 5 percent cut in Medicare
payments to doctors, and provides for a 1.5 percent increase in such
payments next July for physicians who submit data relating to certain
quality of care standards.
I. Extension of Tax Relief for Working and Middle Class
Mr. Speaker, H.R. 6111 extends through 2007 several tax provisions
under current law, including provisions that expired at the end of 2005
and some that are set to expire at the end of this year. Many of these
provisions are targeted to middle- and working-class taxpayers. I
strongly support this portion of the bill. I would like to discuss
several of the more important middle class tax relief provisions.
State and Local Sales Tax Deduction
H.R. 6111 extends by 2 years the provision allowing taxpayers the
option of deducting general sales taxes paid. This provision is of
particular benefit to taxpayers living in States that do not impose a
State income tax. Taxpayers have long been permitted to claim an
itemized deduction for certain State and local taxes, including
personal income tax, real property taxes and personal property taxes,
but they have not been to deduct general sales taxes since 1986. The
2004 corporate tax bill allowed taxpayers, in 2004 and 2005 only, to
claim instead an itemized deduction for State and local sales taxes,
either by accumulating receipts and deducting the total amount or using
tables produced by the Internal Revenue Service. In States without
State income tax, this provision provided a new deduction for
individuals.
Higher Education Expenses Deduction
Similarly, the bill renews and extends through 2007 the ``above-the-
line'' deduction that taxpayers may claim for higher education
expenses: An ``above-the-line'' deduction is a deduction that may be
claimed by a taxpayer even if he or she does not itemize his or her
deductions. Under the provision of law that would be extended,
taxpayers can deduct up to $4,000 of such expenses if their adjusted
gross income does not exceed $65,000 for a single return or $130,000
for a joint return, and up to $2,000 if their income does not exceed
$80,000 for a single return or $160,000 for a joint return. In this
increasingly globalized economy, a college education is becoming a
necessity. We must do all we can to ensure that access to higher
education remains affordable to the working and middle class. That is
why I support strongly the renewal and extension of the deductibility
of higher education expenses.
Teacher Classroom Deduction
Mr. Speaker, H.R. 6111 also extends through 2007 a provision that
expired at the end of 2005, under which teachers may claim an ``above-
the-line'' deduction up to $250 of the expenses for certain supplies
that they purchase for their elementary or secondary classrooms with
their own money.
Mr. Speaker, my daughter taught in elementary schools and I know how
devoted she and her colleagues were to providing their students with
the most enriching educational experience possible. It is not uncommon
for them to dip into their personal funds to buy supplies and materials
to supplement those provided by the schools. Teachers go this extra
mile because they love what they do; everyone knows it is not because
they are overpaid. I approve the teacher classroom deduction included
in the bill. I hope we will be able to increase the amount of this
deduction in the future.
II. Energy Independence and Security
It is imperative that America achieves energy independence in the
21st century. We must end our addiction to foreign sources of oil, most
of which are found in regions of the world which are unstable and in
some cases, opposed to our interests. Accordingly, there is no issue
more integral to our economic and national security than energy
independence.
Although I must admit that I do have reservations about certain
aspects of this bill and the process with which this bill has arrived
on the House floor, I nevertheless support it as a step in the right
direction of America achieving energy independence. I think many of us
in the House would agree that the issues central to this bill, the
future of energy exploration off of our gulf coastlines, deserves more
time for deliberation, debate, and a process for amendment. Some of
these provisions which were incorporated into H.R. 4671 include my
amendments which supported minority-serving universities and minority-
owned businesses.
These very important provisions were designed to ensure that sectors
of our Nation and economy which are often overlooked, namely, minority-
serving institutions and minority-owned businesses, were given an
opportunity to benefit from and compete for the opportunities afforded
in this bill.
Nevertheless, I still support H.R. 6111 because it is a step in the
right direction, a step towards energy independence, and a step away
from being eternally beholden to foreign sources of oil. Additionally,
I believe the energy aspects of the bill lay the foundation for the
development of a new model for reclaiming wetlands; will help the Gulf
Coast States affected by Hurricanes Katrina and Rita to recover from
the disaster and prosper in the future; provide thousands of good-
paying jobs for the middle class; and serve as a blueprint for general
revenue sharing in the 21st century.
In this connection, I would like to emphasize that the revenue
sharing formula in the bill ensures that 37.5 percent of the revenue
from
[[Page H9077]]
new areas of production and new leases go towards gulf producing
States. Furthermore, 20 percent of the revenue allocated to gulf
producing States must be allocated to the State's coastal subdivisions
to be used for the purposes of: coastal protection, conservation,
coastal restoration, hurricane protection, protecting coastal wetlands,
and mitigating damage to fish and wildlife. In addition, 12.5 percent
of the revenue will be allocated to the Land and Water Conservation
Fund, which ensures that the environmental impact of offshore drilling
will be monitored, managed, and regulated to ensure that our coasts are
protected.
Energy is the lifeblood of every economy, especially ours. Producing
more of it leads to more good jobs, cheaper goods, lower fuel prices,
and greater economic and national security. However, the U.S. is more
than 60 percent dependent on foreign sources of energy, twice as
dependent today as we were just 30 years ago. Although energy is the
lifeblood of America's economic security, this growing and dangerous
dependence has resulted in the loss of hundreds of thousands of good
American jobs, skyrocketing consumer prices, and vulnerabilities in our
national security.
Energy imports now make up one-third of America's trade deficit.
Through this bill, America could improve the supply-demand imbalance,
lower consumer prices, and increase jobs by producing more of its own
energy resources. With my district of Houston being the energy capital
of the world, I support the efforts that this bill makes to recognize
State stakeholders and incorporate their interests in revenue sharing.
According to the U.S. Minerals Management Service, MMS, America's
deep seas on the Outer Continental Shelf, OCS, contain 420 trillion
cubic feet of natural gas--the U.S. consumes 23 TCF per year--and 86
billion barrels of oil--the U.S. imports 4.5 billion per year. Even
with all these energy resources, the U.S. sends more than $300
billion--and countless American jobs--overseas every year for energy we
can create at home.
In some cases, the U.S. is facing much-higher energy prices than
other countries. Natural gas, for example, is as much as ten times more
expensive in the United States than it is in foreign nations. This fact
alone has led to the loss of hundreds of thousands of high-paying
American jobs, as natural gas-dependent factories are forced to close
their doors and move overseas in search of more affordable energy. The
outsourcing of American jobs is an issue of central importance to me
and my constituents, and I believe this bill is a step in the right
direction of bringing jobs back to hard-working Americans.
iii. h.r. 6111 blocks medicare cuts in physician payments
Finally, Mr. Speaker, I support the bill because it blocks the 5
percent cut in payments to physicians who treat Medicare patients which
otherwise would go into effect on January 1, 2007. Over the next 9
years, Medicare's trustees are projecting a total of 40 percent in
Medicare payment cuts to physicians. If the January 1 cut is imposed,
the average physician payment rate, accounting for increases in the
cost of running a practice, will be less in 2007 than it was in 2001.
The Medicare sustainable growth rate, SGR, formula, used in
establishing payment rates under the physician fee schedule under the
Medicare program, resulted in significant payment cuts to physicians
and health care professionals in 2002. These cuts were for doctors
only, not for hospitals or other medical facilities.
The Medicare SGR formula would have resulted in payment cuts to
physicians and health care professionals in 2003, 2004, 2005, and 2006
had Congress not intervened.
According to the Medicare Payment Advisory Commission, MedPAC, and
the board of trustees of the Federal Hospital Insurance Trust Fund and
the Federal Supplementary Medical Insurance Trust Fund, the Medicare
SGR formula will result in substantial payment cuts to physicians and
health care professionals through at least 2015.
MedPAC is very well respected and a recognized authority on Medicare
and healthcare issues. It does not support the impending payment cuts
and is concerned that such consecutive annual payment cuts would
threaten access to physician services over time, particularly primary
care servIces.
MedPAC has raised concerns over current payment policies that may
discourage medical students and residents from becoming primary care
physicians because many Medicare beneficiaries rely on primary care
providers for important health care management.
According to a 2006 American Medical Association, survey, if payment
cuts to physicians under the Medicare program go into effect: half of
physicians plan to decrease the number of new Medicare patients they
accept; half of physicians plan to defer the purchase of information
technology; 1 in 3 physicians who treat patients living in rural
communities will discontinue rural outreach services; and almost half--
43 percent--of physicians will decrease the number of new TRICARE
patients they accept.
The annual actions by Congress that have overridden the Medicare SGR
formula have only resulted in instability and unpredictability for
physicians, health care professionals, seniors, and individuals with
disabilities. It does not solve the long-term systemic problem of
rising costs.
Stable, positive updates under the Medicare physician fee schedule
that accurately reflect medical practice cost increases are vital for
encouraging and economically supporting physicians' ability to make the
significant financial investment required for health information
technology and participation in quality improvement programs.
A stable payment system for physicians is critical to preserve
Medicare beneficiaries' access to high-quality health care.
We cannot in good conscience establish barriers for doctors and
health care professionals to surmount in order to continue to provide
access to high-quality Medicare services for all Medicare
beneficiaries. Congress must halt the impending January 1 cuts and
develop an alternative payment system that accurately reflects the
costs of providing care to Medicare beneficiaries.
The biggest single flaw is that this payment schedule rubric recently
announced by CMS has no connection to the actual cost of providing
patient care. Starving doctor's practices will not decrease healthcare
prices, or change unethical behavior. It will drive doctors out of
business who are desperately needed to provide care to our elderly.
In conclusion, I urge my colleagues to support H.R. 6111 because it
takes three steps in the right direction: (1) It provides much needed
tax relief to working and middle class taxpayers; (2) It reduces the
Nation's dependence on foreign energy supplies and ensures that Gulf
Coast States share in the revenue from new areas of production while
protecting our environment; and (3) It blocks draconian cuts by
Medicare in payments to physicians. I urge all members to support the
bill.
Ms. FOXX. Mr. Speaker, today, I voted for H.R. 6111, the Tax Relief
and Health Care Act of 2006. This bill contained a number of critical
provisions, which I supported, and a few which I opposed.
Among the critical provisions contained in the bill, were the tax
deductions for higher education expenses, the extension of the research
and development tax credit, and the tax deduction for teachers who
purchase certain educational supplies for their classrooms. I approve
of allowing employers who hire individuals in targeted groups to claim
the maximum $2,400 work opportunity tax credit and the welfare to work
tax credit. This bill enhances individual ownership of health care
decisions by strengthening health savings accounts. And of course, I am
thrilled that the bill prevents a decrease in Medicare physician
reimbursement payments.
However, I was disappointed that some of my colleagues included some
other policies, such as the provisions involving the abandoned mine
land program. The Congressional Budget Office has determined that these
changes will increase government spending, costing the taxpayers $4.9
billion over 10 years. Ultimately, the inclusion of these provisions
was enough to violate the budget resolution agreed to by the House,
which is intended to help restrain out-of-control Federal spending. I
am sorry also that the bill contained an earmark demanded by the
Democratic leader in the Senate.
It is my firm belief, shared by many others, that this was the last
opportunity we would have for at least 2 years to vote for these good
provisions. Realizing that this was not a perfect bill and that it was
unlikely I would have a chance to vote on a ``clean'' bill, I voted for
this bill to ensure the positive tax policies that have led to 38
consecutive months of economic growth will not end.
Ms. McCOLLUM of Minnesota. Mr. Speaker, I rise to support H.R. 6111
because it is critical that we address the unsustainable cut scheduled
for reimbursement to physicians under Medicare. Due to the inequities
of the Federal Government's formula, physicians in Minnesota receive
some of the lowest payment in the Nation while providing, in my
opinion, the best care. I will continue to work to ensure that Congress
addresses this problem in the long term and that quality health care is
available for Medicare beneficiaries in Minnesota and across the
country.
I also strongly support the tax extensions included in this
legislation. The Research and Development Tax credit, the college
tuition deduction, the State sales taxes exemption, and teacher
classroom expenses deduction are widely supported and important to
families and businesses in the 4th District. It is unfortunate that the
Republican majority has once again failed to craft a durable solution
to the Alternative Minimum Tax, which is squeezing middle class
families. I look forward to working with incoming-Chairman Rangel to
improve tax fairness for middle class families in the next Congress.
[[Page H9078]]
However, I am deeply disappointed the Republican majority chose to
insert an unrelated and irresponsible plan to open 8 million acres to
oil and gas drilling in the eastern Gulf of Mexico into this otherwise
constructive bill. Our country consumes 25 percent of the world's oil
supply but controls only 3 percent of known reserves. That means an
energy policy focused primarily on domestic fossil fuel production will
never deliver energy security for America's working families and small
businesses. Instead, the Congress must commit to a comprehensive energy
strategy that makes bold investments in homegrown renewable fuels, mass
transit, innovative vehicle technology and increased vehicle
efficiency.
In addition to these failings, the bill's offshore drilling
provisions continue a pattern of giveaways for big oil at taxpayer
expense. H.R. 6111 will rob tens of billions of dollars from the
Federal Treasury in offshore drilling royalties. Nearly 40 percent of
the royalty revenue generated from new leases will go to four States--
Texas, Louisiana, Mississippi and Alabama--which will cost the Federal
Government an estimated $20 billion over the next two decades. And the
bill does nothing to stop the Federal Government from giving oil and
gas companies $7 billion in tax breaks for drilling on Federal lands
(known as ``royalty relief'')--resources that should be directed to
providing tax relief for American families.
I voted for the Markey-Hinchey amendment to H.R. 6111, which would
have restored a modicum of fiscal sanity to the offshore drilling
aspects of the bill. The amendment would push oil and gas companies to
renegotiate their royalty free drilling leases by prohibiting companies
holding such leases from gaining access to the eight million acres this
bill opens to exploration. Unfortunately the amendment narrowly failed
on the House floor.
Despite a clear message in last month's mid-term election for a
return to ethical governance, Republican leaders used the popularity of
tax credit extensions and the need to restore cuts in Medicare
reimbursement to force a reckless offshore drilling plan upon America.
Therefore, it is with both regret and resolve that I support the
omnibus package included in H.R. 6111.
Mr. UDALL of New Mexico. Mr. Speaker, I rise today to once again
express my strong opposition to the way the current Majority conducts
business here in the House of Representatives. True to their tenure in
charge of this Chamber, on the last day of the 109th Congress they are
packaging four separate provisions only barely tenuously related into
one omnibus measure. This is not the way to legislate, and it is
particularly frustrating because there are several excellent provisions
included in this omnibus bill, unfortunately packaged with atrocious
provisions that cannot and would not stand on their own merits.
Mr. Speaker, there is much to like in this legislation. There are
extensions of many important tax provisions that are scheduled to soon
expire that are critical to businesses, students, educators, renewable
energy development, and our troops. There is a vitally important
freeze, and in some cases an increase, in reimbursements under Medicare
for physicians. This particular provision is extremely important to my
State of New Mexico, and I have worked to address the scheduled cut in
reimbursement rates by cosponsoring legislation to repeal the
sustainable growth rate formula, as well as joined many of my
colleagues in sending letters to the House Leadership and other Members
on committees with oversight responsibility for the Medicare program.
In addition to the physician reimbursement, there are also several
important provisions for rural health care providers under Medicare.
Many of these provisions are included in rural health care legislation
that I was proud to cosponsor during this Congress.
However there is more that is objectionable in this legislation. Once
again, the majority's tunnel vision and unwillingness to legitimately
explore alternative sources of energy has led us to their energy
panacea--drilling in areas closed to exploration. There are answers to
our energy problems beyond drilling, the majority simply chooses not to
look at them in a serious manner. I strongly support the rebuilding of
the Gulf Coast States devastated by last year's hurricanes, and
recognize the obligation of the Federal Government to assist in doing
so. I also believe we must urgently protect and restore coastal
wetlands. But I do not believe it should be done through the royalties
derived from oil and gas leases authorized by this provision. These
funds should be deposited in the Federal coffers--as more than the
majority of funds derived from Federal oil and gas leases are--not set
up as a new entitlement for only four States. Redirecting these funds
marks an unprecedented raid on the Federal Treasury of billions of
dollars for the benefit of four States. This kind of fiscal
irresponsibility is unacceptable.
Also Mr. Speaker, I am extremely disappointed at the inclusion of
Health Savings Accounts, a measure that would have trouble passing
Congress as a stand-alone. Again, this legislation marks another
significant decrease in revenue, to the estimated tune of $287 million
from FY07 to FY11, and by $1 billion from FY07 to FY16.
Regardless of the provisions included in this legislation, this is no
way to legislate. It is not good government and is not good for
democracy. Each of these measures are important enough on their own
that they deserve up-or-down votes and the only good about today is
that this is the last day the majority win be able to conduct the
business of the House in such an irresponsible manner.
Mr. THOMAS. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. Without objection, the previous question is
ordered.
There was no objection.
The SPEAKER pro tempore. The question is on the amendment offered by
the gentleman from Massachusetts (Mr. Markey).
The question was taken; and the Speaker pro tempore announced that
the noes appeared to have it.
Recorded Vote
Mr. MARKEY. Mr. Speaker, I demand a recorded vote.
A recorded vote was ordered.
The SPEAKER pro tempore. Pursuant to clause 8 and clause 9 of rule
XX, this 15-minute vote on the motion to amend will be followed by 5-
minute votes on adoption of the motion to concur, if ordered; and the
motion to suspend on H. Res. 1091.
The vote was taken by electronic device, and there were--ayes 205,
noes 207, not voting 20, as follows:
[Roll No. 532]
AYES--205
Ackerman
Allen
Andrews
Baca
Baird
Baldwin
Barrow
Bass
Becerra
Berkley
Berman
Berry
Biggert
Bishop (GA)
Bishop (NY)
Boehlert
Boswell
Boyd
Bradley (NH)
Brady (PA)
Brown (OH)
Brown, Corrine
Brown-Waite, Ginny
Butterfield
Capps
Capuano
Cardin
Cardoza
Carnahan
Carson
Case
Castle
Chandler
Clay
Cleaver
Clyburn
Conyers
Cooper
Costa
Costello
Crowley
Cummings
Davis (AL)
Davis (CA)
Davis (FL)
Davis (IL)
DeFazio
DeGette
Delahunt
DeLauro
Dent
Dicks
Dingell
Doggett
Doyle
Emanuel
Engel
Eshoo
Etheridge
Farr
Ferguson
Filner
Fitzpatrick (PA)
Fossella
Frank (MA)
Gerlach
Gordon
Grijalva
Gutierrez
Harman
Hastings (FL)
Herseth
Higgins
Hinchey
Hinojosa
Holden
Holt
Honda
Hooley
Hoyer
Inslee
Israel
Jackson (IL)
Johnson (IL)
Johnson, E. B.
Jones (OH)
Kanjorski
Kaptur
Kelly
Kennedy (RI)
Kildee
Kilpatrick (MI)
Kind
King (NY)
Kucinich
Kuhl (NY)
Langevin
Lantos
Larsen (WA)
Larson (CT)
Lee
Levin
Lewis (GA)
Lipinski
LoBiondo
Lofgren, Zoe
Lowey
Lynch
Maloney
Markey
Marshall
Matsui
McCarthy
McCollum (MN)
McDermott
McGovern
McHugh
McIntyre
McKinney
McNulty
Meehan
Meek (FL)
Meeks (NY)
Michaud
Millender-McDonald
Miller (NC)
Miller, George
Mollohan
Moore (KS)
Moore (WI)
Moran (VA)
Murtha
Nadler
Napolitano
Neal (MA)
Oberstar
Obey
Olver
Owens
Pallone
Pascrell
Pastor
Payne
Pelosi
Peterson (MN)
Platts
Pomeroy
Price (NC)
Rahall
Rangel
Reyes
Reynolds
Ross
Rothman
Roybal-Allard
Ruppersberger
Rush
Ryan (OH)
Sabo
Salazar
Sanchez, Linda T.
Sanchez, Loretta
Sanders
Saxton
Schakowsky
Schiff
Schwartz (PA)
Scott (GA)
Scott (VA)
Serrano
Shays
Sherman
Simmons
Simpson
Sires
Skelton
Slaughter
Smith (NJ)
Smith (WA)
Snyder
Solis
Spratt
Stark
Stupak
Tanner
Tauscher
Taylor (MS)
Thompson (CA)
Tierney
Towns
Udall (CO)
Udall (NM)
Van Hollen
Velazquez
Visclosky
Walsh
Wasserman Schultz
Waters
Watt
Waxman
Weiner
Wexler
Woolsey
Wu
Wynn
NOES--207
Abercrombie
Aderholt
Akin
Alexander
Bachus
Barrett (SC)
Bartlett (MD)
Barton (TX)
Bean
Beauprez
Bilbray
Bilirakis
Bishop (UT)
Blackburn
Blunt
Boehner
Bonilla
Bonner
Bono
Boozman
Boren
Boucher
Boustany
Brady (TX)
Brown (SC)
Burgess
Buyer
Calvert
Camp (MI)
Campbell (CA)
Cannon
Cantor
Capito
Carter
Chabot
Chocola
Coble
Cole (OK)
Conaway
Cramer
Crenshaw
Cubin
Cuellar
Culberson
Davis (KY)
Davis (TN)
Davis, Tom
Deal (GA)
Diaz-Balart, L.
Diaz-Balart, M.
Doolittle
Drake
Dreier
Duncan
Edwards
Ehlers
Emerson
English (PA)
Everett
Feeney
Flake
Forbes
Fortenberry
Foxx
Franks (AZ)
Frelinghuysen
Garrett (NJ)
Gilchrest
Gingrey
Gohmert
Gonzalez
Goode
[[Page H9079]]
Goodlatte
Granger
Graves
Green (WI)
Green, Al
Green, Gene
Gutknecht
Hall
Harris
Hart
Hastings (WA)
Hayes
Hayworth
Hefley
Hensarling
Herger
Hobson
Hoekstra
Hostettler
Hulshof
Hunter
Hyde
Inglis (SC)
Issa
Istook
Jackson-Lee (TX)
Jefferson
Jenkins
Jindal
Johnson (CT)
Johnson, Sam
Keller
Kennedy (MN)
King (IA)
Kingston
Kirk
Kline
Knollenberg
LaHood
Latham
LaTourette
Leach
Lewis (CA)
Lewis (KY)
Linder
Lucas
Lungren, Daniel E.
Mack
Manzullo
Marchant
Matheson
McCaul (TX)
McCotter
McCrery
McHenry
McKeon
McMorris Rodgers
Melancon
Mica
Miller (FL)
Miller (MI)
Miller, Gary
Moran (KS)
Murphy
Musgrave
Myrick
Neugebauer
Northup
Nunes
Nussle
Ortiz
Osborne
Pearce
Pence
Peterson (PA)
Petri
Pickering
Pitts
Poe
Pombo
Porter
Price (GA)
Pryce (OH)
Putnam
Radanovich
Ramstad
Regula
Rehberg
Reichert
Renzi
Rogers (AL)
Rogers (KY)
Rogers (MI)
Rohrabacher
Ros-Lehtinen
Royce
Ryan (WI)
Ryun (KS)
Schmidt
Schwarz (MI)
Sekula Gibbs
Sensenbrenner
Sessions
Shadegg
Shaw
Sherwood
Shimkus
Shuster
Smith (TX)
Sodrel
Souder
Stearns
Sullivan
Tancredo
Terry
Thomas
Thompson (MS)
Thornberry
Tiahrt
Tiberi
Turner
Upton
Walden (OR)
Wamp
Weldon (FL)
Weldon (PA)
Weller
Westmoreland
Whitfield
Wicker
Wilson (NM)
Wilson (SC)
Wolf
Young (AK)
Young (FL)
NOT VOTING--20
Baker
Blumenauer
Burton (IN)
Davis, Jo Ann
Evans
Fattah
Ford
Gallegly
Gibbons
Gillmor
Jones (NC)
Kolbe
Norwood
Otter
Oxley
Paul
Strickland
Sweeney
Taylor (NC)
Watson
{time} 1528
Ms. GRANGER, Messrs. Camp of Michigan, FLAKE, THOMAS, MACK, THOMPSON
of Mississippi, TERRY, MURPHY, PICKERING, Mrs. CUBIN, Messrs. WELDON of
Pennsylvania, BILIRAKIS, AL GREEN of Texas and PEARCE changed their
votes from ``aye'' to ``no.''
Mr. OWENS, Mrs. KELLY, Messrs. HINOJOSA, REYES, SALAZAR, FERGUSON and
MOLLOHAN changed their vote from ``no'' to ``aye.''
So the amendment was rejected.
The result of the vote was announced as above recorded.
Stated against:
Mr. NORWOOD. Mr. Speaker, on rollcall No. 532, Markey of
Massachusetts amendment, had I been present, I would have voted ``no.''
The SPEAKER pro tempore (Mr. Bonner). The question is on the motion
to concur in the Senate amendment with an amendment.
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Recorded Vote
Mr. MARKEY. Mr. Speaker, I demand a recorded vote.
A recorded vote was ordered.
The SPEAKER pro tempore. Pursuant to clause 8 and clause 9 of rule
XX, this 5-minute vote on the motion to concur in the Senate amendment
with a House amendment will be followed by 5-minute votes on suspending
the rules on H. Res. 1091 and suspending the rules on H.R. 6375.
The vote was taken by electronic device, and there were--ayes 367,
noes 45, not voting 21, as follows:
[Roll No. 533]
AYES--367
Abercrombie
Ackerman
Aderholt
Akin
Alexander
Allen
Baca
Bachus
Baird
Barrett (SC)
Barrow
Bartlett (MD)
Barton (TX)
Bass
Bean
Beauprez
Becerra
Berkley
Berman
Berry
Biggert
Bilbray
Bilirakis
Bishop (GA)
Bishop (NY)
Bishop (UT)
Blackburn
Blunt
Boehlert
Boehner
Bonilla
Bonner
Bono
Boozman
Boren
Boswell
Boucher
Boustany
Boyd
Bradley (NH)
Brady (TX)
Brown (OH)
Brown (SC)
Brown, Corrine
Brown-Waite, Ginny
Burgess
Butterfield
Buyer
Calvert
Camp (MI)
Campbell (CA)
Cannon
Cantor
Capito
Capuano
Cardin
Cardoza
Carnahan
Carson
Carter
Case
Castle
Chabot
Chandler
Chocola
Clay
Cleaver
Clyburn
Coble
Cole (OK)
Conaway
Cooper
Costa
Costello
Cramer
Crenshaw
Crowley
Cubin
Cuellar
Culberson
Cummings
Davis (AL)
Davis (CA)
Davis (IL)
Davis (KY)
Davis (TN)
Davis, Tom
Deal (GA)
DeFazio
DeGette
Delahunt
DeLauro
Dent
Diaz-Balart, L.
Diaz-Balart, M.
Dicks
Dingell
Doggett
Doolittle
Doyle
Drake
Dreier
Duncan
Edwards
Ehlers
Emanuel
Emerson
Engel
English (PA)
Eshoo
Etheridge
Everett
Feeney
Ferguson
Fitzpatrick (PA)
Flake
Forbes
Fortenberry
Fossella
Foxx
Franks (AZ)
Frelinghuysen
Garrett (NJ)
Gerlach
Gilchrest
Gingrey
Gohmert
Gonzalez
Goode
Goodlatte
Gordon
Granger
Graves
Green (WI)
Green, Al
Green, Gene
Gutknecht
Hall
Harris
Hart
Hastert
Hastings (WA)
Hayes
Hayworth
Hefley
Hensarling
Herger
Herseth
Higgins
Hinojosa
Hobson
Hoekstra
Holden
Honda
Hooley
Hostettler
Hoyer
Hulshof
Hunter
Hyde
Inglis (SC)
Inslee
Israel
Issa
Istook
Jackson-Lee (TX)
Jefferson
Jenkins
Jindal
Johnson (CT)
Johnson (IL)
Johnson, E. B.
Johnson, Sam
Jones (OH)
Kanjorski
Kaptur
Keller
Kelly
Kennedy (MN)
Kennedy (RI)
Kildee
Kilpatrick (MI)
Kind
King (IA)
King (NY)
Kingston
Kirk
Kline
Knollenberg
Kuhl (NY)
LaHood
Langevin
Lantos
Larsen (WA)
Larson (CT)
Latham
LaTourette
Leach
Levin
Lewis (CA)
Lewis (GA)
Lewis (KY)
Linder
Lipinski
LoBiondo
Lofgren, Zoe
Lowey
Lucas
Lungren, Daniel E.
Mack
Maloney
Manzullo
Marchant
Marshall
Matheson
Matsui
McCarthy
McCaul (TX)
McCollum (MN)
McCotter
McCrery
McDermott
McHenry
McHugh
McIntyre
McKeon
McMorris Rodgers
McNulty
Meehan
Meeks (NY)
Melancon
Mica
Michaud
Millender-McDonald
Miller (FL)
Miller (MI)
Miller (NC)
Miller, Gary
Miller, George
Mollohan
Moore (KS)
Moran (KS)
Moran (VA)
Murphy
Murtha
Musgrave
Myrick
Nadler
Neal (MA)
Neugebauer
Northup
Nunes
Nussle
Oberstar
Obey
Ortiz
Osborne
Owens
Pascrell
Pearce
Pelosi
Pence
Peterson (MN)
Peterson (PA)
Petri
Pickering
Pitts
Platts
Poe
Pombo
Pomeroy
Porter
Price (GA)
Price (NC)
Pryce (OH)
Putnam
Radanovich
Rahall
Ramstad
Rangel
Regula
Rehberg
Reichert
Renzi
Reyes
Reynolds
Rogers (AL)
Rogers (KY)
Rogers (MI)
Rohrabacher
Ross
Rothman
Royce
Ruppersberger
Rush
Ryan (OH)
Ryan (WI)
Ryun (KS)
Sabo
Salazar
Sanchez, Loretta
Saxton
Schiff
Schmidt
Schwartz (PA)
Schwarz (MI)
Scott (GA)
Scott (VA)
Sekula Gibbs
Sensenbrenner
Serrano
Sessions
Shadegg
Shaw
Shays
Sherman
Sherwood
Shimkus
Shuster
Sires
Skelton
Slaughter
Smith (NJ)
Smith (TX)
Smith (WA)
Snyder
Sodrel
Solis
Souder
Spratt
Stearns
Stupak
Sullivan
Tancredo
Tanner
Tauscher
Taylor (MS)
Terry
Thomas
Thompson (CA)
Thompson (MS)
Thornberry
Tiahrt
Tiberi
Towns
Turner
Udall (CO)
Upton
Van Hollen
Velazquez
Walden (OR)
Walsh
Wamp
Watt
Weiner
Weldon (FL)
Weldon (PA)
Weller
Westmoreland
Wicker
Wilson (NM)
Wilson (SC)
Wolf
Wu
Wynn
Young (AK)
Young (FL)
NOES--45
Andrews
Baldwin
Brady (PA)
Capps
Conyers
Davis (FL)
Farr
Filner
Frank (MA)
Grijalva
Gutierrez
Harman
Hastings (FL)
Hinchey
Holt
Jackson (IL)
Kucinich
Lee
Lynch
Markey
McGovern
McKinney
Meek (FL)
Moore (WI)
Napolitano
Olver
Pallone
Pastor
Payne
Ros-Lehtinen
Roybal-Allard
Sanchez, Linda T.
Sanders
Schakowsky
Simpson
Stark
Tierney
Udall (NM)
Visclosky
Wasserman Schultz
Waters
Waxman
Wexler
Whitfield
Woolsey
NOT VOTING--21
Baker
Blumenauer
Burton (IN)
Davis, Jo Ann
Evans
Fattah
Ford
Gallegly
Gibbons
Gillmor
Jones (NC)
Kolbe
Norwood
Otter
Oxley
Paul
Simmons
Strickland
Sweeney
Taylor (NC)
Watson
Announcement by the Speaker Pro Tempore
The SPEAKER pro tempore (during the vote). Members are advised that
there are 2 minutes remaining in this vote.
{time} 1538
Mr. BERMAN, Ms. SOLIS, and Mr. MEEHAN changed their vote from ``no''
to ``aye.''
So the motion was agreed to.
The result of the vote was announced as above recorded.
A motion to reconsider was laid on the table.
Stated for: Mr. NORWOOD. Mr. Speaker, on rollcall No. 533, Tax
Relief and Health Care Act, had I been present, I would have voted
``yes.''
Mr. SIMMONS. Mr. Speaker, on rollcall No. 533 I was listed as not
voting. I was in the Capitol, however, and cannot explain the absence
of a recorded vote. I would like to be recorded as voting ``yea.''
____________________