[Congressional Record Volume 156, Number 152 (Friday, November 19, 2010)]
[Senate]
[Pages S8131-S8172]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 4716. Mr. DORGAN submitted an amendment intended to be proposed by 
him to the bill S. 510, to amend the Federal Food, Drug, and Cosmetic 
Act with respect to the safety of the food supply; which was ordered to 
lie on the table; as follows:

       At the end, add the following:

               TITLE V--IMPORTATION OF PRESCRIPTION DRUGS

     SEC. 501. SHORT TITLE.

       This title may be cited as the ``Pharmaceutical Market 
     Access and Drug Safety Act of 2010''.

     SEC. 502. FINDINGS.

       Congress finds that--
       (1) Americans unjustly pay up to 5 times more to fill their 
     prescriptions than consumers in other countries;
       (2) the United States is the largest market for 
     pharmaceuticals in the world, yet American consumers pay the 
     highest prices for brand pharmaceuticals in the world;
       (3) a prescription drug is neither safe nor effective to an 
     individual who cannot afford it;
       (4) allowing and structuring the importation of 
     prescription drugs to ensure access to safe and affordable 
     drugs approved by the Food and Drug Administration will 
     provide a level of safety to American consumers that they do 
     not currently enjoy;
       (5) American spend more than $200,000,000,000 on 
     prescription drugs every year;
       (6) the Congressional Budget Office has found that the cost 
     of prescription drugs are between 35 to 55 percent less in 
     other highly-developed countries than in the United States; 
     and
       (7) promoting competitive market pricing would both 
     contribute to health care savings and allow greater access to 
     therapy, improving health and saving lives.

     SEC. 503. REPEAL OF CERTAIN SECTION REGARDING IMPORTATION OF 
                   PRESCRIPTION DRUGS.

       Chapter VIII of the Federal Food, Drug, and Cosmetic Act 
     (21 U.S.C. 381 et seq.) is amended by striking section 804.

     SEC. 504. IMPORTATION OF PRESCRIPTION DRUGS; WAIVER OF 
                   CERTAIN IMPORT RESTRICTIONS.

       (a) In General.--Chapter VIII of the Federal Food, Drug, 
     and Cosmetic Act (21 U.S.C. 381 et seq.), as amended by 
     section 503, is further amended by inserting after section 
     803 the following:

     ``SEC. 804. COMMERCIAL AND PERSONAL IMPORTATION OF 
                   PRESCRIPTION DRUGS.

       ``(a) Importation of Prescription Drugs.--
       ``(1) In general.--In the case of qualifying drugs imported 
     or offered for import into the United States from registered 
     exporters or by registered importers--
       ``(A) the limitation on importation that is established in 
     section 801(d)(1) is waived; and
       ``(B) the standards referred to in section 801(a) regarding 
     admission of the drugs are subject to subsection (g) of this 
     section (including with respect to qualifying drugs to which 
     section 801(d)(1) does not apply).
       ``(2) Importers.--A qualifying drug may not be imported 
     under paragraph (1) unless--
       ``(A) the drug is imported by a pharmacy, group of 
     pharmacies, or a wholesaler that is a registered importer; or
       ``(B) the drug is imported by an individual for personal 
     use or for the use of a family member of the individual (not 
     for resale) from a registered exporter.
       ``(3) Rule of construction.--This section shall apply only 
     with respect to a drug that is imported or offered for import 
     into the United States--
       ``(A) by a registered importer; or
       ``(B) from a registered exporter to an individual.
       ``(4) Definitions.--
       ``(A) Registered exporter; registered importer.--For 
     purposes of this section:
       ``(i) The term `registered exporter' means an exporter for 
     which a registration under subsection (b) has been approved 
     and is in effect.
       ``(ii) The term `registered importer' means a pharmacy, 
     group of pharmacies, or a wholesaler for which a registration 
     under subsection (b) has been approved and is in effect.
       ``(iii) The term `registration condition' means a condition 
     that must exist for a registration under subsection (b) to be 
     approved.
       ``(B) Qualifying drug.--For purposes of this section, the 
     term `qualifying drug' means a drug for which there is a 
     corresponding U.S. label drug.
       ``(C) U.S. label drug.--For purposes of this section, the 
     term `U.S. label drug' means a prescription drug that--
       ``(i) with respect to a qualifying drug, has the same 
     active ingredient or ingredients, route of administration, 
     dosage form, and strength as the qualifying drug;
       ``(ii) with respect to the qualifying drug, is manufactured 
     by or for the person that manufactures the qualifying drug;
       ``(iii) is approved under section 505(c); and
       ``(iv) is not--

       ``(I) a controlled substance, as defined in section 102 of 
     the Controlled Substances Act (21 U.S.C. 802);
       ``(II) a biological product, as defined in section 351 of 
     the Public Health Service Act (42 U.S.C. 262), including--

       ``(aa) a therapeutic DNA plasmid product;
       ``(bb) a therapeutic synthetic peptide product;
       ``(cc) a monoclonal antibody product for in vivo use; and
       ``(dd) a therapeutic recombinant DNA-derived product;

       ``(III) an infused drug, including a peritoneal dialysis 
     solution;
       ``(IV) an injected drug;
       ``(V) a drug that is inhaled during surgery;
       ``(VI) a drug that is the listed drug referred to in 2 or 
     more abbreviated new drug applications under which the drug 
     is commercially marketed; or
       ``(VII) a sterile opthlamic drug intended for topical use 
     on or in the eye.

       ``(D) Other definitions.--For purposes of this section:
       ``(i)(I) The term `exporter' means a person that is in the 
     business of exporting a drug to individuals in the United 
     States from Canada or from a permitted country designated by 
     the Secretary under subclause (II), or that, pursuant to 
     submitting a registration under subsection (b), seeks to be 
     in such business.
       ``(II) The Secretary shall designate a permitted country 
     under subparagraph (E) (other than Canada) as a country from 
     which an exporter may export a drug to individuals in the 
     United States if the Secretary determines that--

       ``(aa) the country has statutory or regulatory standards 
     that are equivalent to the standards in the United States and 
     Canada with respect to--

       ``(AA) the training of pharmacists;
       ``(BB) the practice of pharmacy; and
       ``(CC) the protection of the privacy of personal medical 
     information; and

[[Page S8132]]

       ``(bb) the importation of drugs to individuals in the 
     United States from the country will not adversely affect 
     public health.

       ``(ii) The term `importer' means a pharmacy, a group of 
     pharmacies, or a wholesaler that is in the business of 
     importing a drug into the United States or that, pursuant to 
     submitting a registration under subsection (b), seeks to be 
     in such business.
       ``(iii) The term `pharmacist' means a person licensed by a 
     State to practice pharmacy, including the dispensing and 
     selling of prescription drugs.
       ``(iv) The term `pharmacy' means a person that--

       ``(I) is licensed by a State to engage in the business of 
     selling prescription drugs at retail; and
       ``(II) employs 1 or more pharmacists.

       ``(v) The term `prescription drug' means a drug that is 
     described in section 503(b)(1).
       ``(vi) The term `wholesaler'--

       ``(I) means a person licensed as a wholesaler or 
     distributor of prescription drugs in the United States under 
     section 503(e)(2)(A); and
       ``(II) does not include a person authorized to import drugs 
     under section 801(d)(1).

       ``(E) Permitted country.--The term `permitted country' 
     means--
       ``(i) Australia;
       ``(ii) Canada;
       ``(iii) a member country of the European Union, but does 
     not include a member country with respect to which--

       ``(I) the country's Annex to the Treaty of Accession to the 
     European Union 2003 includes a transitional measure for the 
     regulation of human pharmaceutical products that has not 
     expired; or
       ``(II) the Secretary determines that the requirements 
     described in subclauses (I) and (II) of clause (vii) will not 
     be met by the date on which such transitional measure for the 
     regulation of human pharmaceutical products expires;

       ``(iv) Japan;
       ``(v) New Zealand;
       ``(vi) Switzerland; and
       ``(vii) a country in which the Secretary determines the 
     following requirements are met:

       ``(I) The country has statutory or regulatory 
     requirements--

       ``(aa) that require the review of drugs for safety and 
     effectiveness by an entity of the government of the country;
       ``(bb) that authorize the approval of only those drugs that 
     have been determined to be safe and effective by experts 
     employed by or acting on behalf of such entity and qualified 
     by scientific training and experience to evaluate the safety 
     and effectiveness of drugs on the basis of adequate and well-
     controlled investigations, including clinical investigations, 
     conducted by experts qualified by scientific training and 
     experience to evaluate the safety and effectiveness of drugs;
       ``(cc) that require the methods used in, and the facilities 
     and controls used for the manufacture, processing, and 
     packing of drugs in the country to be adequate to preserve 
     their identity, quality, purity, and strength;
       ``(dd) for the reporting of adverse reactions to drugs and 
     procedures to withdraw approval and remove drugs found not to 
     be safe or effective; and
       ``(ee) that require the labeling and promotion of drugs to 
     be in accordance with the approval of the drug.

       ``(II) The valid marketing authorization system in the 
     country is equivalent to the systems in the countries 
     described in clauses (i) through (vi).
       ``(III) The importation of drugs to the United States from 
     the country will not adversely affect public health.

       ``(b) Registration of Importers and Exporters.--
       ``(1) Registration of importers and exporters.--A 
     registration condition is that the importer or exporter 
     involved (referred to in this subsection as a `registrant') 
     submits to the Secretary a registration containing the 
     following:
       ``(A)(i) In the case of an exporter, the name of the 
     exporter and an identification of all places of business of 
     the exporter that relate to qualifying drugs, including each 
     warehouse or other facility owned or controlled by, or 
     operated for, the exporter.
       ``(ii) In the case of an importer, the name of the importer 
     and an identification of the places of business of the 
     importer at which the importer initially receives a 
     qualifying drug after importation (which shall not exceed 3 
     places of business except by permission of the Secretary).
       ``(B) Such information as the Secretary determines to be 
     necessary to demonstrate that the registrant is in compliance 
     with registration conditions under--
       ``(i) in the case of an importer, subsections (c), (d), 
     (e), (g), and (j) (relating to the sources of imported 
     qualifying drugs; the inspection of facilities of the 
     importer; the payment of fees; compliance with the standards 
     referred to in section 801(a); and maintenance of records and 
     samples); or
       ``(ii) in the case of an exporter, subsections (c), (d), 
     (f), (g), (h), (i), and (j) (relating to the sources of 
     exported qualifying drugs; the inspection of facilities of 
     the exporter and the marking of compliant shipments; the 
     payment of fees; and compliance with the standards referred 
     to in section 801(a); being licensed as a pharmacist; 
     conditions for individual importation; and maintenance of 
     records and samples).
       ``(C) An agreement by the registrant that the registrant 
     will not under subsection (a) import or export any drug that 
     is not a qualifying drug.
       ``(D) An agreement by the registrant to--
       ``(i) notify the Secretary of a recall or withdrawal of a 
     qualifying drug distributed in a permitted country that the 
     registrant has exported or imported, or intends to export or 
     import, to the United States under subsection (a);
       ``(ii) provide for the return to the registrant of such 
     drug; and
       ``(iii) cease, or not begin, the exportation or importation 
     of such drug unless the Secretary has notified the registrant 
     that exportation or importation of such drug may proceed.
       ``(E) An agreement by the registrant to ensure and monitor 
     compliance with each registration condition, to promptly 
     correct any noncompliance with such a condition, and to 
     promptly report to the Secretary any such noncompliance.
       ``(F) A plan describing the manner in which the registrant 
     will comply with the agreement under subparagraph (E).
       ``(G) An agreement by the registrant to enforce a contract 
     under subsection (c)(3)(B) against a party in the chain of 
     custody of a qualifying drug with respect to the authority of 
     the Secretary under clauses (ii) and (iii) of that 
     subsection.
       ``(H) An agreement by the registrant to notify the 
     Secretary not more than 30 days before the registrant intends 
     to make the change, of--
       ``(i) any change that the registrant intends to make 
     regarding information provided under subparagraph (A) or (B); 
     and
       ``(ii) any change that the registrant intends to make in 
     the compliance plan under subparagraph (F).
       ``(I) In the case of an exporter:
       ``(i) An agreement by the exporter that a qualifying drug 
     will not under subsection (a) be exported to any individual 
     not authorized pursuant to subsection (a)(2)(B) to be an 
     importer of such drug.
       ``(ii) An agreement to post a bond, payable to the Treasury 
     of the United States that is equal in value to the lesser 
     of--

       ``(I) the value of drugs exported by the exporter to the 
     United States in a typical 4-week period over the course of a 
     year under this section; or
       ``(II) $1,000,000.

       ``(iii) An agreement by the exporter to comply with 
     applicable provisions of Canadian law, or the law of the 
     permitted country designated under subsection 
     (a)(4)(D)(i)(II) in which the exporter is located, that 
     protect the privacy of personal information with respect to 
     each individual importing a prescription drug from the 
     exporter under subsection (a)(2)(B).
       ``(iv) An agreement by the exporter to report to the 
     Secretary--

       ``(I) not later than August 1 of each fiscal year, the 
     total price and the total volume of drugs exported to the 
     United States by the exporter during the 6-month period from 
     January 1 through June 30 of that year; and
       ``(II) not later than January 1 of each fiscal year, the 
     total price and the total volume of drugs exported to the 
     United States by the exporter during the previous fiscal 
     year.

       ``(J) In the case of an importer, an agreement by the 
     importer to report to the Secretary--
       ``(i) not later than August 1 of each fiscal year, the 
     total price and the total volume of drugs imported to the 
     United States by the importer during the 6-month period from 
     January 1 through June 30 of that fiscal year; and
       ``(ii) not later than January 1 of each fiscal year, the 
     total price and the total volume of drugs imported to the 
     United States by the importer during the previous fiscal 
     year.
       ``(K) Such other provisions as the Secretary may require by 
     regulation to protect the public health while permitting--
       ``(i) the importation by pharmacies, groups of pharmacies, 
     and wholesalers as registered importers of qualifying drugs 
     under subsection (a); and
       ``(ii) importation by individuals of qualifying drugs under 
     subsection (a).
       ``(2) Approval or disapproval of registration.--
       ``(A) In general.--Not later than 90 days after the date on 
     which a registrant submits to the Secretary a registration 
     under paragraph (1), the Secretary shall notify the 
     registrant whether the registration is approved or is 
     disapproved. The Secretary shall disapprove a registration if 
     there is reason to believe that the registrant is not in 
     compliance with one or more registration conditions, and 
     shall notify the registrant of such reason. In the case of a 
     disapproved registration, the Secretary shall subsequently 
     notify the registrant that the registration is approved if 
     the Secretary determines that the registrant is in compliance 
     with such conditions.
       ``(B) Changes in registration information.--Not later than 
     30 days after receiving a notice under paragraph (1)(H) from 
     a registrant, the Secretary shall determine whether the 
     change involved affects the approval of the registration of 
     the registrant under paragraph (1), and shall inform the 
     registrant of the determination.
       ``(3) Publication of contact information for registered 
     exporters.--Through the Internet website of the Food and Drug 
     Administration and a toll-free telephone number, the 
     Secretary shall make readily available to the public a list 
     of registered exporters, including contact information for 
     the exporters. Promptly after the approval of a registration 
     submitted under paragraph (1),

[[Page S8133]]

     the Secretary shall update the Internet website and the 
     information provided through the toll-free telephone number 
     accordingly.
       ``(4) Suspension and termination.--
       ``(A) Suspension.--With respect to the effectiveness of a 
     registration submitted under paragraph (1):
       ``(i) Subject to clause (ii), the Secretary may suspend the 
     registration if the Secretary determines, after notice and 
     opportunity for a hearing, that the registrant has failed to 
     maintain substantial compliance with a registration 
     condition.
       ``(ii) If the Secretary determines that, under color of the 
     registration, the exporter has exported a drug or the 
     importer has imported a drug that is not a qualifying drug, 
     or a drug that does not comply with subsection (g)(2)(A) or 
     (g)(4), or has exported a qualifying drug to an individual in 
     violation of subsection (i), the Secretary shall immediately 
     suspend the registration. A suspension under the preceding 
     sentence is not subject to the provision by the Secretary of 
     prior notice, and the Secretary shall provide to the 
     registrant an opportunity for a hearing not later than 10 
     days after the date on which the registration is suspended.
       ``(iii) The Secretary may reinstate the registration, 
     whether suspended under clause (i) or (ii), if the Secretary 
     determines that the registrant has demonstrated that further 
     violations of registration conditions will not occur.
       ``(B) Termination.--The Secretary, after notice and 
     opportunity for a hearing, may terminate the registration 
     under paragraph (1) of a registrant if the Secretary 
     determines that the registrant has engaged in a pattern or 
     practice of violating 1 or more registration conditions, or 
     if on 1 or more occasions the Secretary has under 
     subparagraph (A)(ii) suspended the registration of the 
     registrant. The Secretary may make the termination permanent, 
     or for a fixed period of not less than 1 year. During the 
     period in which the registration is terminated, any 
     registration submitted under paragraph (1) by the registrant, 
     or a person that is a partner in the export or import 
     enterprise, or a principal officer in such enterprise, and 
     any registration prepared with the assistance of the 
     registrant or such a person, has no legal effect under this 
     section.
       ``(5) Default of bond.--A bond required to be posted by an 
     exporter under paragraph (1)(I)(ii) shall be defaulted and 
     paid to the Treasury of the United States if, after 
     opportunity for an informal hearing, the Secretary determines 
     that the exporter has--
       ``(A) exported a drug to the United States that is not a 
     qualifying drug or that is not in compliance with subsection 
     (g)(2)(A), (g)(4), or (i); or
       ``(B) failed to permit the Secretary to conduct an 
     inspection described under subsection (d).
       ``(c) Sources of Qualifying Drugs.--A registration 
     condition is that the exporter or importer involved agrees 
     that a qualifying drug will under subsection (a) be exported 
     or imported into the United States only if there is 
     compliance with the following:
       ``(1) The drug was manufactured in an establishment--
       ``(A) required to register under subsection (h) or (i) of 
     section 510; and
       ``(B)(i) inspected by the Secretary; or
       ``(ii) for which the Secretary has elected to rely on a 
     satisfactory report of a good manufacturing practice 
     inspection of the establishment from a permitted country 
     whose regulatory system the Secretary recognizes as 
     equivalent under a mutual recognition agreement, as provided 
     for under section 510(i)(3), section 803, or part 26 of title 
     21, Code of Federal Regulations (or any corresponding 
     successor rule or regulation).
       ``(2) The establishment is located in any country, and the 
     establishment manufactured the drug for distribution in the 
     United States or for distribution in 1 or more of the 
     permitted countries (without regard to whether in addition 
     the drug is manufactured for distribution in a foreign 
     country that is not a permitted country).
       ``(3) The exporter or importer obtained the drug--
       ``(A) directly from the establishment; or
       ``(B) directly from an entity that, by contract with the 
     exporter or importer--
       ``(i) provides to the exporter or importer a statement (in 
     such form and containing such information as the Secretary 
     may require) that, for the chain of custody from the 
     establishment, identifies each prior sale, purchase, or trade 
     of the drug (including the date of the transaction and the 
     names and addresses of all parties to the transaction);
       ``(ii) agrees to permit the Secretary to inspect such 
     statements and related records to determine their accuracy;
       ``(iii) agrees, with respect to the qualifying drugs 
     involved, to permit the Secretary to inspect warehouses and 
     other facilities, including records, of the entity for 
     purposes of determining whether the facilities are in 
     compliance with any standards under this Act that are 
     applicable to facilities of that type in the United States; 
     and
       ``(iv) has ensured, through such contractual relationships 
     as may be necessary, that the Secretary has the same 
     authority regarding other parties in the chain of custody 
     from the establishment that the Secretary has under clauses 
     (ii) and (iii) regarding such entity.
       ``(4)(A) The foreign country from which the importer will 
     import the drug is a permitted country; or
       ``(B) The foreign country from which the exporter will 
     export the drug is the permitted country in which the 
     exporter is located.
       ``(5) During any period in which the drug was not in the 
     control of the manufacturer of the drug, the drug did not 
     enter any country that is not a permitted country.
       ``(6) The exporter or importer retains a sample of each lot 
     of the drug for testing by the Secretary.
       ``(d) Inspection of Facilities; Marking of Shipments.--
       ``(1) Inspection of facilities.--A registration condition 
     is that, for the purpose of assisting the Secretary in 
     determining whether the exporter involved is in compliance 
     with all other registration conditions--
       ``(A) the exporter agrees to permit the Secretary--
       ``(i) to conduct onsite inspections, including monitoring 
     on a day-to-day basis, of places of business of the exporter 
     that relate to qualifying drugs, including each warehouse or 
     other facility owned or controlled by, or operated for, the 
     exporter;
       ``(ii) to have access, including on a day-to-day basis, 
     to--

       ``(I) records of the exporter that relate to the export of 
     such drugs, including financial records; and
       ``(II) samples of such drugs;

       ``(iii) to carry out the duties described in paragraph (3); 
     and
       ``(iv) to carry out any other functions determined by the 
     Secretary to be necessary regarding the compliance of the 
     exporter; and
       ``(B) the Secretary has assigned 1 or more employees of the 
     Secretary to carry out the functions described in this 
     subsection for the Secretary randomly, but not less than 12 
     times annually, on the premises of places of businesses 
     referred to in subparagraph (A)(i), and such an assignment 
     remains in effect on a continuous basis.
       ``(2) Marking of compliant shipments.--A registration 
     condition is that the exporter involved agrees to affix to 
     each shipping container of qualifying drugs exported under 
     subsection (a) such markings as the Secretary determines to 
     be necessary to identify the shipment as being in compliance 
     with all registration conditions. Markings under the 
     preceding sentence shall--
       ``(A) be designed to prevent affixation of the markings to 
     any shipping container that is not authorized to bear the 
     markings; and
       ``(B) include anticounterfeiting or track-and-trace 
     technologies, taking into account the economic and technical 
     feasibility of those technologies.
       ``(3) Certain duties relating to exporters.--Duties of the 
     Secretary with respect to an exporter include the following:
       ``(A) Inspecting, randomly, but not less than 12 times 
     annually, the places of business of the exporter at which 
     qualifying drugs are stored and from which qualifying drugs 
     are shipped.
       ``(B) During the inspections under subparagraph (A), 
     verifying the chain of custody of a statistically significant 
     sample of qualifying drugs from the establishment in which 
     the drug was manufactured to the exporter, which shall be 
     accomplished or supplemented by the use of anticounterfeiting 
     or track-and-trace technologies, taking into account the 
     economic and technical feasibility of those technologies, 
     except that a drug that lacks such technologies from the 
     point of manufacture shall not for that reason be excluded 
     from importation by an exporter.
       ``(C) Randomly reviewing records of exports to individuals 
     for the purpose of determining whether the drugs are being 
     imported by the individuals in accordance with the conditions 
     under subsection (i). Such reviews shall be conducted in a 
     manner that will result in a statistically significant 
     determination of compliance with all such conditions.
       ``(D) Monitoring the affixing of markings under paragraph 
     (2).
       ``(E) Inspecting as the Secretary determines is necessary 
     the warehouses and other facilities, including records, of 
     other parties in the chain of custody of qualifying drugs.
       ``(F) Determining whether the exporter is in compliance 
     with all other registration conditions.
       ``(4) Prior notice of shipments.--A registration condition 
     is that, not less than 8 hours and not more than 5 days in 
     advance of the time of the importation of a shipment of 
     qualifying drugs, the importer involved agrees to submit to 
     the Secretary a notice with respect to the shipment of drugs 
     to be imported or offered for import into the United States 
     under subsection (a). A notice under the preceding sentence 
     shall include--
       ``(A) the name and complete contact information of the 
     person submitting the notice;
       ``(B) the name and complete contact information of the 
     importer involved;
       ``(C) the identity of the drug, including the established 
     name of the drug, the quantity of the drug, and the lot 
     number assigned by the manufacturer;
       ``(D) the identity of the manufacturer of the drug, 
     including the identity of the establishment at which the drug 
     was manufactured;
       ``(E) the country from which the drug is shipped;
       ``(F) the name and complete contact information for the 
     shipper of the drug;
       ``(G) anticipated arrival information, including the port 
     of arrival and crossing location within that port, and the 
     date and time;
       ``(H) a summary of the chain of custody of the drug from 
     the establishment in which the drug was manufactured to the 
     importer;

[[Page S8134]]

       ``(I) a declaration as to whether the Secretary has ordered 
     that importation of the drug from the permitted country cease 
     under subsection (g)(2)(C) or (D); and
       ``(J) such other information as the Secretary may require 
     by regulation.
       ``(5) Marking of compliant shipments.--A registration 
     condition is that the importer involved agrees, before 
     wholesale distribution (as defined in section 503(e)) of a 
     qualifying drug that has been imported under subsection (a), 
     to affix to each container of such drug such markings or 
     other technology as the Secretary determines necessary to 
     identify the shipment as being in compliance with all 
     registration conditions, except that the markings or other 
     technology shall not be required on a drug that bears 
     comparable, compatible markings or technology from the 
     manufacturer of the drug. Markings or other technology under 
     the preceding sentence shall--
       ``(A) be designed to prevent affixation of the markings or 
     other technology to any container that is not authorized to 
     bear the markings; and
       ``(B) shall include anticounterfeiting or track-and-trace 
     technologies, taking into account the economic and technical 
     feasibility of such technologies.
       ``(6) Certain duties relating to importers.--Duties of the 
     Secretary with respect to an importer include the following:
       ``(A) Inspecting, randomly, but not less than 12 times 
     annually, the places of business of the importer at which a 
     qualifying drug is initially received after importation.
       ``(B) During the inspections under subparagraph (A), 
     verifying the chain of custody of a statistically significant 
     sample of qualifying drugs from the establishment in which 
     the drug was manufactured to the importer, which shall be 
     accomplished or supplemented by the use of anticounterfeiting 
     or track-and-trace technologies, taking into account the 
     economic and technical feasibility of those technologies, 
     except that a drug that lacks such technologies from the 
     point of manufacture shall not for that reason be excluded 
     from importation by an importer.
       ``(C) Reviewing notices under paragraph (4).
       ``(D) Inspecting as the Secretary determines is necessary 
     the warehouses and other facilities, including records of 
     other parties in the chain of custody of qualifying drugs.
       ``(E) Determining whether the importer is in compliance 
     with all other registration conditions.
       ``(e) Importer Fees.--
       ``(1) Registration fee.--A registration condition is that 
     the importer involved pays to the Secretary a fee of $10,000 
     due on the date on which the importer first submits the 
     registration to the Secretary under subsection (b).
       ``(2) Inspection fee.--A registration condition is that the 
     importer involved pays a fee to the Secretary in accordance 
     with this subsection. Such fee shall be paid not later than 
     October 1 and April 1 of each fiscal year in the amount 
     provided for under paragraph (3).
       ``(3) Amount of inspection fee.--
       ``(A) Aggregate total of fees.--Not later than 30 days 
     before the start of each fiscal year, the Secretary, in 
     consultation with the Secretary of Homeland Security and the 
     Secretary of the Treasury, shall establish an aggregate total 
     of fees to be collected under paragraph (2) for importers for 
     that fiscal year that is sufficient, and not more than 
     necessary, to pay the costs for that fiscal year of 
     administering this section with respect to registered 
     importers, including the costs associated with--
       ``(i) inspecting the facilities of registered importers, 
     and of other entities in the chain of custody of a qualifying 
     drug as necessary, under subsection (d)(6);
       ``(ii) developing, implementing, and operating under such 
     subsection an electronic system for submission and review of 
     the notices required under subsection (d)(4) with respect to 
     shipments of qualifying drugs under subsection (a) to assess 
     compliance with all registration conditions when such 
     shipments are offered for import into the United States; and
       ``(iii) inspecting such shipments as necessary, when 
     offered for import into the United States to determine if 
     such a shipment should be refused admission under subsection 
     (g)(5).
       ``(B) Limitation.--Subject to subparagraph (C), the 
     aggregate total of fees collected under paragraph (2) for a 
     fiscal year shall not exceed 2.5 percent of the total price 
     of qualifying drugs imported during that fiscal year into the 
     United States by registered importers under subsection (a).
       ``(C) Total price of drugs.--
       ``(i) Estimate.--For the purposes of complying with the 
     limitation described in subparagraph (B) when establishing 
     under subparagraph (A) the aggregate total of fees to be 
     collected under paragraph (2) for a fiscal year, the 
     Secretary shall estimate the total price of qualifying drugs 
     imported into the United States by registered importers 
     during that fiscal year by adding the total price of 
     qualifying drugs imported by each registered importer during 
     the 6-month period from January 1 through June 30 of the 
     previous fiscal year, as reported to the Secretary by each 
     registered importer under subsection (b)(1)(J).
       ``(ii) Calculation.--Not later than March 1 of the fiscal 
     year that follows the fiscal year for which the estimate 
     under clause (i) is made, the Secretary shall calculate the 
     total price of qualifying drugs imported into the United 
     States by registered importers during that fiscal year by 
     adding the total price of qualifying drugs imported by each 
     registered importer during that fiscal year, as reported to 
     the Secretary by each registered importer under subsection 
     (b)(1)(J).
       ``(iii) Adjustment.--If the total price of qualifying drugs 
     imported into the United States by registered importers 
     during a fiscal year as calculated under clause (ii) is less 
     than the aggregate total of fees collected under paragraph 
     (2) for that fiscal year, the Secretary shall provide for a 
     pro-rata reduction in the fee due from each registered 
     importer on April 1 of the subsequent fiscal year so that the 
     limitation described in subparagraph (B) is observed.
       ``(D) Individual importer fee.--Subject to the limitation 
     described in subparagraph (B), the fee under paragraph (2) to 
     be paid on October 1 and April 1 by an importer shall be an 
     amount that is proportional to a reasonable estimate by the 
     Secretary of the semiannual share of the importer of the 
     volume of qualifying drugs imported by importers under 
     subsection (a).
       ``(4) Use of fees.--
       ``(A) In general.--Fees collected by the Secretary under 
     paragraphs (1) and (2) shall be credited to the appropriation 
     account for salaries and expenses of the Food and Drug 
     Administration until expended (without fiscal year 
     limitation), and the Secretary may, in consultation with the 
     Secretary of Homeland Security and the Secretary of the 
     Treasury, transfer some proportion of such fees to the 
     appropriation account for salaries and expenses of the Bureau 
     of Customs and Border Protection until expended (without 
     fiscal year limitation).
       ``(B) Availability.--Fees collected by the Secretary under 
     paragraphs (1) and (2) shall be made available to the Food 
     and Drug Administration.
       ``(C) Sole purpose.--Fees collected by the Secretary under 
     paragraphs (1) and (2) are only available to the Secretary 
     and, if transferred, to the Secretary of Homeland Security, 
     and are for the sole purpose of paying the costs referred to 
     in paragraph (3)(A).
       ``(5) Collection of fees.--In any case where the Secretary 
     does not receive payment of a fee assessed under paragraph 
     (1) or (2) within 30 days after it is due, such fee shall be 
     treated as a claim of the United States Government subject to 
     subchapter II of chapter 37 of title 31, United States Code.
       ``(f) Exporter Fees.--
       ``(1) Registration fee.--A registration condition is that 
     the exporter involved pays to the Secretary a fee of $10,000 
     due on the date on which the exporter first submits that 
     registration to the Secretary under subsection (b).
       ``(2) Inspection fee.--A registration condition is that the 
     exporter involved pays a fee to the Secretary in accordance 
     with this subsection. Such fee shall be paid not later than 
     October 1 and April 1 of each fiscal year in the amount 
     provided for under paragraph (3).
       ``(3) Amount of inspection fee.--
       ``(A) Aggregate total of fees.--Not later than 30 days 
     before the start of each fiscal year, the Secretary, in 
     consultation with the Secretary of Homeland Security and the 
     Secretary of the Treasury, shall establish an aggregate total 
     of fees to be collected under paragraph (2) for exporters for 
     that fiscal year that is sufficient, and not more than 
     necessary, to pay the costs for that fiscal year of 
     administering this section with respect to registered 
     exporters, including the costs associated with--
       ``(i) inspecting the facilities of registered exporters, 
     and of other entities in the chain of custody of a qualifying 
     drug as necessary, under subsection (d)(3);
       ``(ii) developing, implementing, and operating under such 
     subsection a system to screen marks on shipments of 
     qualifying drugs under subsection (a) that indicate 
     compliance with all registration conditions, when such 
     shipments are offered for import into the United States; and
       ``(iii) screening such markings, and inspecting such 
     shipments as necessary, when offered for import into the 
     United States to determine if such a shipment should be 
     refused admission under subsection (g)(5).
       ``(B) Limitation.--Subject to subparagraph (C), the 
     aggregate total of fees collected under paragraph (2) for a 
     fiscal year shall not exceed 2.5 percent of the total price 
     of qualifying drugs imported during that fiscal year into the 
     United States by registered exporters under subsection (a).
       ``(C) Total price of drugs.--
       ``(i) Estimate.--For the purposes of complying with the 
     limitation described in subparagraph (B) when establishing 
     under subparagraph (A) the aggregate total of fees to be 
     collected under paragraph (2) for a fiscal year, the 
     Secretary shall estimate the total price of qualifying drugs 
     imported into the United States by registered exporters 
     during that fiscal year by adding the total price of 
     qualifying drugs exported by each registered exporter during 
     the 6-month period from January 1 through June 30 of the 
     previous fiscal year, as reported to the Secretary by each 
     registered exporter under subsection (b)(1)(I)(iv).
       ``(ii) Calculation.--Not later than March 1 of the fiscal 
     year that follows the fiscal year for which the estimate 
     under clause (i) is made, the Secretary shall calculate the 
     total price of qualifying drugs imported into the United 
     States by registered exporters during that fiscal year by 
     adding the total price of qualifying drugs exported by each 
     registered exporter during that fiscal year, as reported

[[Page S8135]]

     to the Secretary by each registered exporter under subsection 
     (b)(1)(I)(iv).
       ``(iii) Adjustment.--If the total price of qualifying drugs 
     imported into the United States by registered exporters 
     during a fiscal year as calculated under clause (ii) is less 
     than the aggregate total of fees collected under paragraph 
     (2) for that fiscal year, the Secretary shall provide for a 
     pro-rata reduction in the fee due from each registered 
     exporter on April 1 of the subsequent fiscal year so that the 
     limitation described in subparagraph (B) is observed.
       ``(D) Individual exporter fee.--Subject to the limitation 
     described in subparagraph (B), the fee under paragraph (2) to 
     be paid on October 1 and April 1 by an exporter shall be an 
     amount that is proportional to a reasonable estimate by the 
     Secretary of the semiannual share of the exporter of the 
     volume of qualifying drugs exported by exporters under 
     subsection (a).
       ``(4) Use of fees.--
       ``(A) In general.--Fees collected by the Secretary under 
     paragraphs (1) and (2) shall be credited to the appropriation 
     account for salaries and expenses of the Food and Drug 
     Administration until expended (without fiscal year 
     limitation), and the Secretary may, in consultation with the 
     Secretary of Homeland Security and the Secretary of the 
     Treasury, transfer some proportion of such fees to the 
     appropriation account for salaries and expenses of the Bureau 
     of Customs and Border Protection until expended (without 
     fiscal year limitation).
       ``(B) Availability.--Fees collected by the Secretary under 
     paragraphs (1) and (2) shall be made available to the Food 
     and Drug Administration.
       ``(C) Sole purpose.--Fees collected by the Secretary under 
     paragraphs (1) and (2) are only available to the Secretary 
     and, if transferred, to the Secretary of Homeland Security, 
     and are for the sole purpose of paying the costs referred to 
     in paragraph (3)(A).
       ``(5) Collection of fees.--In any case where the Secretary 
     does not receive payment of a fee assessed under paragraph 
     (1) or (2) within 30 days after it is due, such fee shall be 
     treated as a claim of the United States Government subject to 
     subchapter II of chapter 37 of title 31, United States Code.
       ``(g) Compliance With Section 801(a).--
       ``(1) In general.--A registration condition is that each 
     qualifying drug exported under subsection (a) by the 
     registered exporter involved or imported under subsection (a) 
     by the registered importer involved is in compliance with the 
     standards referred to in section 801(a) regarding admission 
     of the drug into the United States, subject to paragraphs 
     (2), (3), and (4).
       ``(2) Section 505; approval status.--
       ``(A) In general.--A qualifying drug that is imported or 
     offered for import under subsection (a) shall comply with the 
     conditions established in the approved application under 
     section 505(b) for the U.S. label drug as described under 
     this subsection.
       ``(B) Notice by manufacturer; general provisions.--
       ``(i) In general.--The person that manufactures a 
     qualifying drug that is, or will be, introduced for 
     commercial distribution in a permitted country shall in 
     accordance with this paragraph submit to the Secretary a 
     notice that--

       ``(I) includes each difference in the qualifying drug from 
     a condition established in the approved application for the 
     U.S. label drug beyond--

       ``(aa) the variations provided for in the application; and
       ``(bb) any difference in labeling (except ingredient 
     labeling); or

       ``(II) states that there is no difference in the qualifying 
     drug from a condition established in the approved application 
     for the U.S. label drug beyond--

       ``(aa) the variations provided for in the application; and
       ``(bb) any difference in labeling (except ingredient 
     labeling).
       ``(ii) Information in notice.--A notice under clause (i)(I) 
     shall include the information that the Secretary may require 
     under section 506A, any additional information the Secretary 
     may require (which may include data on bioequivalence if such 
     data are not required under section 506A), and, with respect 
     to the permitted country that approved the qualifying drug 
     for commercial distribution, or with respect to which such 
     approval is sought, include the following:

       ``(I) The date on which the qualifying drug with such 
     difference was, or will be, introduced for commercial 
     distribution in the permitted country.
       ``(II) Information demonstrating that the person submitting 
     the notice has also notified the government of the permitted 
     country in writing that the person is submitting to the 
     Secretary a notice under clause (i)(I), which notice 
     describes the difference in the qualifying drug from a 
     condition established in the approved application for the 
     U.S. label drug.
       ``(III) The information that the person submitted or will 
     submit to the government of the permitted country for 
     purposes of obtaining approval for commercial distribution of 
     the drug in the country which, if in a language other than 
     English, shall be accompanied by an English translation 
     verified to be complete and accurate, with the name, address, 
     and a brief statement of the qualifications of the person 
     that made the translation.

       ``(iii) Certifications.--The chief executive officer and 
     the chief medical officer of the manufacturer involved shall 
     each certify in the notice under clause (i) that--

       ``(I) the information provided in the notice is complete 
     and true; and
       ``(II) a copy of the notice has been provided to the 
     Federal Trade Commission and to the State attorneys general.

       ``(iv) Fee.--

       ``(I) In general.--If a notice submitted under clause (i) 
     includes a difference that would, under section 506A, require 
     the submission of a supplemental application if made as a 
     change to the U.S. label drug, the person that submits the 
     notice shall pay to the Secretary a fee in the same amount as 
     would apply if the person were paying a fee pursuant to 
     section 736(a)(1)(A)(ii). Fees collected by the Secretary 
     under the preceding sentence are available only to the 
     Secretary and are for the sole purpose of paying the costs of 
     reviewing notices submitted under clause (i).
       ``(II) Fee amount for certain years.--If no fee amount is 
     in effect under section 736(a)(1)(A)(ii) for a fiscal year, 
     then the amount paid by a person under subclause (I) shall--

       ``(aa) for the first fiscal year in which no fee amount 
     under such section in effect, be equal to the fee amount 
     under section 736(a)(1)(A)(ii) for the most recent fiscal 
     year for which such section was in effect, adjusted in 
     accordance with section 736(c); and
       ``(bb) for each subsequent fiscal year in which no fee 
     amount under such section is effect, be equal to the 
     applicable fee amount for the previous fiscal year, adjusted 
     in accordance with section 736(c).
       ``(v) Timing of submission of notices.--

       ``(I) Prior approval notices.--A notice under clause (i) to 
     which subparagraph (C) applies shall be submitted to the 
     Secretary not later than 120 days before the qualifying drug 
     with the difference is introduced for commercial distribution 
     in a permitted country, unless the country requires that 
     distribution of the qualifying drug with the difference begin 
     less than 120 days after the country requires the difference.
       ``(II) Other approval notices.--A notice under clause (i) 
     to which subparagraph (D) applies shall be submitted to the 
     Secretary not later than the day on which the qualifying drug 
     with the difference is introduced for commercial distribution 
     in a permitted country.
       ``(III) Other notices.--A notice under clause (i) to which 
     subparagraph (E) applies shall be submitted to the Secretary 
     on the date that the qualifying drug is first introduced for 
     commercial distribution in a permitted country and annually 
     thereafter.

       ``(vi) Review by secretary.--

       ``(I) In general.--In this paragraph, the difference in a 
     qualifying drug that is submitted in a notice under clause 
     (i) from the U.S. label drug shall be treated by the 
     Secretary as if it were a manufacturing change to the U.S. 
     label drug under section 506A.
       ``(II) Standard of review.--Except as provided in subclause 
     (III), the Secretary shall review and approve or disapprove 
     the difference in a notice submitted under clause (i), if 
     required under section 506A, using the safe and effective 
     standard for approving or disapproving a manufacturing change 
     under section 506A.
       ``(III) Bioequivalence.--If the Secretary would approve the 
     difference in a notice submitted under clause (i) using the 
     safe and effective standard under section 506A and if the 
     Secretary determines that the qualifying drug is not 
     bioequivalent to the U.S. label drug, the Secretary shall--

       ``(aa) include in the labeling provided under paragraph (3) 
     a prominent advisory that the qualifying drug is safe and 
     effective but is not bioequivalent to the U.S. label drug if 
     the Secretary determines that such an advisory is necessary 
     for health care practitioners and patients to use the 
     qualifying drug safely and effectively; or
       ``(bb) decline to approve the difference if the Secretary 
     determines that the availability of both the qualifying drug 
     and the U.S. label drug would pose a threat to the public 
     health.

       ``(IV) Review by the secretary.--The Secretary shall review 
     and approve or disapprove the difference in a notice 
     submitted under clause (i), if required under section 506A, 
     not later than 120 days after the date on which the notice is 
     submitted.
       ``(V) Establishment inspection.--If review of such 
     difference would require an inspection of the establishment 
     in which the qualifying drug is manufactured--

       ``(aa) such inspection by the Secretary shall be 
     authorized; and
       ``(bb) the Secretary may rely on a satisfactory report of a 
     good manufacturing practice inspection of the establishment 
     from a permitted country whose regulatory system the 
     Secretary recognizes as equivalent under a mutual recognition 
     agreement, as provided under section 510(i)(3), section 803, 
     or part 26 of title 21, Code of Federal Regulations (or any 
     corresponding successor rule or regulation).
       ``(vii) Publication of information on notices.--

       ``(I) In general.--Through the Internet website of the Food 
     and Drug Administration and a toll-free telephone number, the 
     Secretary shall readily make available to the public a list 
     of notices submitted under clause (i).
       ``(II) Contents.--The list under subclause (I) shall 
     include the date on which a notice is submitted and whether--

       ``(aa) a notice is under review;

[[Page S8136]]

       ``(bb) the Secretary has ordered that importation of the 
     qualifying drug from a permitted country cease; or
       ``(cc) the importation of the drug is permitted under 
     subsection (a).

       ``(III) Update.--The Secretary shall promptly update the 
     Internet website with any changes to the list.

       ``(C) Notice; drug difference requiring prior approval.--In 
     the case of a notice under subparagraph (B)(i) that includes 
     a difference that would, under subsection (c) or (d)(3)(B)(i) 
     of section 506A, require the approval of a supplemental 
     application before the difference could be made to the U.S. 
     label drug the following shall occur:
       ``(i) Promptly after the notice is submitted, the Secretary 
     shall notify registered exporters, registered importers, the 
     Federal Trade Commission, and the State attorneys general 
     that the notice has been submitted with respect to the 
     qualifying drug involved.
       ``(ii) If the Secretary has not made a determination 
     whether such a supplemental application regarding the U.S. 
     label drug would be approved or disapproved by the date on 
     which the qualifying drug involved is to be introduced for 
     commercial distribution in a permitted country, the Secretary 
     shall--

       ``(I) order that the importation of the qualifying drug 
     involved from the permitted country not begin until the 
     Secretary completes review of the notice; and
       ``(II) promptly notify registered exporters, registered 
     importers, the Federal Trade Commission, and the State 
     attorneys general of the order.

       ``(iii) If the Secretary determines that such a 
     supplemental application regarding the U.S. label drug would 
     not be approved, the Secretary shall--

       ``(I) order that the importation of the qualifying drug 
     involved from the permitted country cease, or provide that an 
     order under clause (ii), if any, remains in effect;
       ``(II) notify the permitted country that approved the 
     qualifying drug for commercial distribution of the 
     determination; and
       ``(III) promptly notify registered exporters, registered 
     importers, the Federal Trade Commission, and the State 
     attorneys general of the determination.

       ``(iv) If the Secretary determines that such a supplemental 
     application regarding the U.S. label drug would be approved, 
     the Secretary shall--

       ``(I) vacate the order under clause (ii), if any;
       ``(II) consider the difference to be a variation provided 
     for in the approved application for the U.S. label drug;
       ``(III) permit importation of the qualifying drug under 
     subsection (a); and
       ``(IV) promptly notify registered exporters, registered 
     importers, the Federal Trade Commission, and the State 
     attorneys general of the determination.

       ``(D) Notice; drug difference not requiring prior 
     approval.--In the case of a notice under subparagraph (B)(i) 
     that includes a difference that would, under section 
     506A(d)(3)(B)(ii), not require the approval of a supplemental 
     application before the difference could be made to the U.S. 
     label drug the following shall occur:
       ``(i) During the period in which the notice is being 
     reviewed by the Secretary, the authority under this 
     subsection to import the qualifying drug involved continues 
     in effect.
       ``(ii) If the Secretary determines that such a supplemental 
     application regarding the U.S. label drug would not be 
     approved, the Secretary shall--

       ``(I) order that the importation of the qualifying drug 
     involved from the permitted country cease;
       ``(II) notify the permitted country that approved the 
     qualifying drug for commercial distribution of the 
     determination; and
       ``(III) promptly notify registered exporters, registered 
     importers, the Federal Trade Commission, and the State 
     attorneys general of the determination.

       ``(iii) If the Secretary determines that such a 
     supplemental application regarding the U.S. label drug would 
     be approved, the difference shall be considered to be a 
     variation provided for in the approved application for the 
     U.S. label drug.
       ``(E) Notice; drug difference not requiring approval; no 
     difference.--In the case of a notice under subparagraph 
     (B)(i) that includes a difference for which, under section 
     506A(d)(1)(A), a supplemental application would not be 
     required for the difference to be made to the U.S. label 
     drug, or that states that there is no difference, the 
     Secretary--
       ``(i) shall consider such difference to be a variation 
     provided for in the approved application for the U.S. label 
     drug;
       ``(ii) may not order that the importation of the qualifying 
     drug involved cease; and
       ``(iii) shall promptly notify registered exporters and 
     registered importers.
       ``(F) Differences in active ingredient, route of 
     administration, dosage form, or strength.--
       ``(i) In general.--A person who manufactures a drug 
     approved under section 505(b) shall submit an application 
     under section 505(b) for approval of another drug that is 
     manufactured for distribution in a permitted country by or 
     for the person that manufactures the drug approved under 
     section 505(b) if--

       ``(I) there is no qualifying drug in commercial 
     distribution in permitted countries whose combined population 
     represents at least 50 percent of the total population of all 
     permitted countries with the same active ingredient or 
     ingredients, route of administration, dosage form, and 
     strength as the drug approved under section 505(b); and
       ``(II) each active ingredient of the other drug is related 
     to an active ingredient of the drug approved under section 
     505(b), as defined in clause (v).

       ``(ii) Application under section 505(b).--The application 
     under section 505(b) required under clause (i) shall--

       ``(I) request approval of the other drug for the indication 
     or indications for which the drug approved under section 
     505(b) is labeled;
       ``(II) include the information that the person submitted to 
     the government of the permitted country for purposes of 
     obtaining approval for commercial distribution of the other 
     drug in that country, which if in a language other than 
     English, shall be accompanied by an English translation 
     verified to be complete and accurate, with the name, address, 
     and a brief statement of the qualifications of the person 
     that made the translation;
       ``(III) include a right of reference to the application for 
     the drug approved under section 505(b); and
       ``(IV) include such additional information as the Secretary 
     may require.

       ``(iii) Timing of submission of application.--An 
     application under section 505(b) required under clause (i) 
     shall be submitted to the Secretary not later than the day on 
     which the information referred to in clause (ii)(II) is 
     submitted to the government of the permitted country.
       ``(iv) Notice of decision on application.--The Secretary 
     shall promptly notify registered exporters, registered 
     importers, the Federal Trade Commission, and the State 
     attorneys general of a determination to approve or to 
     disapprove an application under section 505(b) required under 
     clause (i).
       ``(v) Related active ingredients.--For purposes of clause 
     (i)(II), 2 active ingredients are related if they are--

       ``(I) the same; or
       ``(II) different salts, esters, or complexes of the same 
     moiety.

       ``(3) Section 502; labeling.--
       ``(A) Importation by registered importer.--
       ``(i) In general.--In the case of a qualifying drug that is 
     imported or offered for import by a registered importer, such 
     drug shall be considered to be in compliance with section 502 
     and the labeling requirements under the approved application 
     for the U.S. label drug if the qualifying drug bears--

       ``(I) a copy of the labeling approved for the U.S. label 
     drug under section 505, without regard to whether the copy 
     bears any trademark involved;
       ``(II) the name of the manufacturer and location of the 
     manufacturer;
       ``(III) the lot number assigned by the manufacturer;
       ``(IV) the name, location, and registration number of the 
     importer; and
       ``(V) the National Drug Code number assigned to the 
     qualifying drug by the Secretary.

       ``(ii) Request for copy of the labeling.--The Secretary 
     shall provide such copy to the registered importer involved, 
     upon request of the importer.
       ``(iii) Requested labeling.--The labeling provided by the 
     Secretary under clause (ii) shall--

       ``(I) include the established name, as defined in section 
     502(e)(3), for each active ingredient in the qualifying drug;
       ``(II) not include the proprietary name of the U.S. label 
     drug or any active ingredient thereof;
       ``(III) if required under paragraph (2)(B)(vi)(III), a 
     prominent advisory that the qualifying drug is safe and 
     effective but not bioequivalent to the U.S. label drug; and
       ``(IV) if the inactive ingredients of the qualifying drug 
     are different from the inactive ingredients for the U.S. 
     label drug, include--

       ``(aa) a prominent notice that the ingredients of the 
     qualifying drug differ from the ingredients of the U.S. label 
     drug and that the qualifying drug must be dispensed with an 
     advisory to people with allergies about this difference and a 
     list of ingredients; and
       ``(bb) a list of the ingredients of the qualifying drug as 
     would be required under section 502(e).
       ``(B) Importation by individual.--
       ``(i) In general.--In the case of a qualifying drug that is 
     imported or offered for import by a registered exporter to an 
     individual, such drug shall be considered to be in compliance 
     with section 502 and the labeling requirements under the 
     approved application for the U.S. label drug if the packaging 
     and labeling of the qualifying drug complies with all 
     applicable regulations promulgated under sections 3 and 4 of 
     the Poison Prevention Packaging Act of 1970 (15 U.S.C. 1471 
     et seq.) and the labeling of the qualifying drug includes--

       ``(I) directions for use by the consumer;
       ``(II) the lot number assigned by the manufacturer;
       ``(III) the name and registration number of the exporter;
       ``(IV) if required under paragraph (2)(B)(vi)(III), a 
     prominent advisory that the drug is safe and effective but 
     not bioequivalent to the U.S. label drug;
       ``(V) if the inactive ingredients of the drug are different 
     from the inactive ingredients for the U.S. label drug--

       ``(aa) a prominent advisory that persons with an allergy 
     should check the ingredient list of the drug because the 
     ingredients of

[[Page S8137]]

     the drug differ from the ingredients of the U.S. label drug; 
     and
       ``(bb) a list of the ingredients of the drug as would be 
     required under section 502(e); and

       ``(VI) a copy of any special labeling that would be 
     required by the Secretary had the U.S. label drug been 
     dispensed by a pharmacist in the United States, without 
     regard to whether the special labeling bears any trademark 
     involved.

       ``(ii) Packaging.--A qualifying drug offered for import to 
     an individual by an exporter under this section that is 
     packaged in a unit-of-use container (as those items are 
     defined in the United States Pharmacopeia and National 
     Formulary) shall not be repackaged, provided that--

       ``(I) the packaging complies with all applicable 
     regulations under sections 3 and 4 of the Poison Prevention 
     Packaging Act of 1970 (15 U.S.C. 1471 et seq.); or
       ``(II) the consumer consents to waive the requirements of 
     such Act, after being informed that the packaging does not 
     comply with such Act and that the exporter will provide the 
     drug in packaging that is compliant at no additional cost.

       ``(iii) Request for copy of special labeling and ingredient 
     list.--The Secretary shall provide to the registered exporter 
     involved a copy of the special labeling, the advisory, and 
     the ingredient list described under clause (i), upon request 
     of the exporter.
       ``(iv) Requested labeling and ingredient list.--The 
     labeling and ingredient list provided by the Secretary under 
     clause (iii) shall--

       ``(I) include the established name, as defined in section 
     502(e)(3), for each active ingredient in the drug; and
       ``(II) not include the proprietary name of the U.S. label 
     drug or any active ingredient thereof.

       ``(4) Section 501; adulteration.--A qualifying drug that is 
     imported or offered for import under subsection (a) shall be 
     considered to be in compliance with section 501 if the drug 
     is in compliance with subsection (c).
       ``(5) Standards for refusing admission.--A drug exported 
     under subsection (a) from a registered exporter or imported 
     by a registered importer may be refused admission into the 
     United States if 1 or more of the following applies:
       ``(A) The drug is not a qualifying drug.
       ``(B) A notice for the drug required under paragraph (2)(B) 
     has not been submitted to the Secretary.
       ``(C) The Secretary has ordered that importation of the 
     drug from the permitted country cease under subparagraph (C) 
     or (D) of paragraph (2).
       ``(D) The drug does not comply with paragraph (3) or (4).
       ``(E) The shipping container appears damaged in a way that 
     may affect the strength, quality, or purity of the drug.
       ``(F) The Secretary becomes aware that--
       ``(i) the drug may be counterfeit;
       ``(ii) the drug may have been prepared, packed, or held 
     under insanitary conditions; or
       ``(iii) the methods used in, or the facilities or controls 
     used for, the manufacturing, processing, packing, or holding 
     of the drug do not conform to good manufacturing practice.
       ``(G) The Secretary has obtained an injunction under 
     section 302 that prohibits the distribution of the drug in 
     interstate commerce.
       ``(H) The Secretary has under section 505(e) withdrawn 
     approval of the drug.
       ``(I) The manufacturer of the drug has instituted a recall 
     of the drug.
       ``(J) If the drug is imported or offered for import by a 
     registered importer without submission of a notice in 
     accordance with subsection (d)(4).
       ``(K) If the drug is imported or offered for import from a 
     registered exporter to an individual and 1 or more of the 
     following applies:
       ``(i) The shipping container for such drug does not bear 
     the markings required under subsection (d)(2).
       ``(ii) The markings on the shipping container appear to be 
     counterfeit.
       ``(iii) The shipping container or markings appear to have 
     been tampered with.
       ``(h) Exporter Licensure in Permitted Country.--A 
     registration condition is that the exporter involved agrees 
     that a qualifying drug will be exported to an individual only 
     if the Secretary has verified that--
       ``(1) the exporter is authorized under the law of the 
     permitted country in which the exporter is located to 
     dispense prescription drugs; and
       ``(2) the exporter employs persons that are licensed under 
     the law of the permitted country in which the exporter is 
     located to dispense prescription drugs in sufficient number 
     to dispense safely the drugs exported by the exporter to 
     individuals, and the exporter assigns to those persons 
     responsibility for dispensing such drugs to individuals.
       ``(i) Individuals; Conditions for Importation.--
       ``(1) In general.--For purposes of subsection (a)(2)(B), 
     the importation of a qualifying drug by an individual is in 
     accordance with this subsection if the following conditions 
     are met:
       ``(A) The drug is accompanied by a copy of a prescription 
     for the drug, which prescription--
       ``(i) is valid under applicable Federal and State laws; and
       ``(ii) was issued by a practitioner who, under the law of a 
     State of which the individual is a resident, or in which the 
     individual receives care from the practitioner who issues the 
     prescription, is authorized to administer prescription drugs.
       ``(B) The drug is accompanied by a copy of the 
     documentation that was required under the law or regulations 
     of the permitted country in which the exporter is located, as 
     a condition of dispensing the drug to the individual.
       ``(C) The copies referred to in subparagraphs (A)(i) and 
     (B) are marked in a manner sufficient--
       ``(i) to indicate that the prescription, and the equivalent 
     document in the permitted country in which the exporter is 
     located, have been filled; and
       ``(ii) to prevent a duplicative filling by another 
     pharmacist.
       ``(D) The individual has provided to the registered 
     exporter a complete list of all drugs used by the individual 
     for review by the individuals who dispense the drug.
       ``(E) The quantity of the drug does not exceed a 90-day 
     supply.
       ``(F) The drug is not an ineligible subpart H drug. For 
     purposes of this section, a prescription drug is an 
     `ineligible subpart H drug' if the drug was approved by the 
     Secretary under subpart H of part 314 of title 21, Code of 
     Federal Regulations (relating to accelerated approval), with 
     restrictions under section 520 of such part to assure safe 
     use, and the Secretary has published in the Federal Register 
     a notice that the Secretary has determined that good cause 
     exists to prohibit the drug from being imported pursuant to 
     this subsection.
       ``(2) Notice regarding drug refused admission.--If a 
     registered exporter ships a drug to an individual pursuant to 
     subsection (a)(2)(B) and the drug is refused admission to the 
     United States, a written notice shall be sent to the 
     individual and to the exporter that informs the individual 
     and the exporter of such refusal and the reason for the 
     refusal.
       ``(j) Maintenance of Records and Samples.--
       ``(1) In general.--A registration condition is that the 
     importer or exporter involved shall--
       ``(A) maintain records required under this section for not 
     less than 2 years; and
       ``(B) maintain samples of each lot of a qualifying drug 
     required under this section for not more than 2 years.
       ``(2) Place of record maintenance.--The records described 
     under paragraph (1) shall be maintained--
       ``(A) in the case of an importer, at the place of business 
     of the importer at which the importer initially receives the 
     qualifying drug after importation; or
       ``(B) in the case of an exporter, at the facility from 
     which the exporter ships the qualifying drug to the United 
     States.
       ``(k) Drug Recalls.--
       ``(1) Manufacturers.--A person that manufactures a 
     qualifying drug imported from a permitted country under this 
     section shall promptly inform the Secretary--
       ``(A) if the drug is recalled or withdrawn from the market 
     in a permitted country;
       ``(B) how the drug may be identified, including lot number; 
     and
       ``(C) the reason for the recall or withdrawal.
       ``(2) Secretary.--With respect to each permitted country, 
     the Secretary shall--
       ``(A) enter into an agreement with the government of the 
     country to receive information about recalls and withdrawals 
     of qualifying drugs in the country; or
       ``(B) monitor recalls and withdrawals of qualifying drugs 
     in the country using any information that is available to the 
     public in any media.
       ``(3) Notice.--The Secretary may notify, as appropriate, 
     registered exporters, registered importers, wholesalers, 
     pharmacies, or the public of a recall or withdrawal of a 
     qualifying drug in a permitted country.
       ``(l) Drug Labeling and Packaging.--
       ``(1) In general.--When a qualifying drug that is imported 
     into the United States by an importer under subsection (a) is 
     dispensed by a pharmacist to an individual, the pharmacist 
     shall provide that the packaging and labeling of the drug 
     complies with all applicable regulations promulgated under 
     sections 3 and 4 of the Poison Prevention Packaging Act of 
     1970 (15 U.S.C. 1471 et seq.) and shall include with any 
     other labeling provided to the individual the following:
       ``(A) The lot number assigned by the manufacturer.
       ``(B) The name and registration number of the importer.
       ``(C) If required under paragraph (2)(B)(vi)(III) of 
     subsection (g), a prominent advisory that the drug is safe 
     and effective but not bioequivalent to the U.S. label drug.
       ``(D) If the inactive ingredients of the drug are different 
     from the inactive ingredients for the U.S. label drug--
       ``(i) a prominent advisory that persons with allergies 
     should check the ingredient list of the drug because the 
     ingredients of the drug differ from the ingredients of the 
     U.S. label drug; and
       ``(ii) a list of the ingredients of the drug as would be 
     required under section 502(e).
       ``(2) Packaging.--A qualifying drug that is packaged in a 
     unit-of-use container (as those terms are defined in the 
     United States Pharmacopeia and National Formulary) shall not 
     be repackaged, provided that--
       ``(A) the packaging complies with all applicable 
     regulations under sections 3 and 4 of the Poison Prevention 
     Packaging Act of 1970 (15 U.S.C. 1471 et seq.); or

[[Page S8138]]

       ``(B) the consumer consents to waive the requirements of 
     such Act, after being informed that the packaging does not 
     comply with such Act and that the pharmacist will provide the 
     drug in packaging that is compliant at no additional cost.
       ``(m) Charitable Contributions.--Notwithstanding any other 
     provision of this section, this section does not authorize 
     the importation into the United States of a qualifying drug 
     donated or otherwise supplied for free or at nominal cost by 
     the manufacturer of the drug to a charitable or humanitarian 
     organization, including the United Nations and affiliates, or 
     to a government of a foreign country.
       ``(n) Unfair and Discriminatory Acts and Practices.--
       ``(1) In general.--It is unlawful for a manufacturer, 
     directly or indirectly (including by being a party to a 
     licensing agreement or other agreement), to--
       ``(A) discriminate by charging a higher price for a 
     prescription drug sold to a registered exporter or other 
     person in a permitted country that exports a qualifying drug 
     to the United States under this section than the price that 
     is charged, inclusive of rebates or other incentives to the 
     permitted country or other person, to another person that is 
     in the same country and that does not export a qualifying 
     drug into the United States under this section;
       ``(B) discriminate by charging a higher price for a 
     prescription drug sold to a registered importer or other 
     person that distributes, sells, or uses a qualifying drug 
     imported into the United States under this section than the 
     price that is charged to another person in the United States 
     that does not import a qualifying drug under this section, or 
     that does not distribute, sell, or use such a drug;
       ``(C) discriminate by denying, restricting, or delaying 
     supplies of a prescription drug to a registered exporter or 
     other person in a permitted country that exports a qualifying 
     drug to the United States under this section or to a 
     registered importer or other person that distributes, sells, 
     or uses a qualifying drug imported into the United States 
     under this section;
       ``(D) discriminate by publicly, privately, or otherwise 
     refusing to do business with a registered exporter or other 
     person in a permitted country that exports a qualifying drug 
     to the United States under this section or with a registered 
     importer or other person that distributes, sells, or uses a 
     qualifying drug imported into the United States under this 
     section;
       ``(E) knowingly fail to submit a notice under subsection 
     (g)(2)(B)(i), knowingly fail to submit such a notice on or 
     before the date specified in subsection (g)(2)(B)(v) or as 
     otherwise required under paragraphs (3), (4), and (5) of 
     section 504(e) of the Pharmaceutical Market Access and Drug 
     Safety Act of 2010, knowingly submit such a notice that makes 
     a materially false, fictitious, or fraudulent statement, or 
     knowingly fail to provide promptly any information requested 
     by the Secretary to review such a notice;
       ``(F) knowingly fail to submit an application required 
     under subsection (g)(2)(F), knowingly fail to submit such an 
     application on or before the date specified in subsection 
     (g)(2)(F)(iii), knowingly submit such an application that 
     makes a materially false, fictitious, or fraudulent 
     statement, or knowingly fail to provide promptly any 
     information requested by the Secretary to review such an 
     application;
       ``(G) cause there to be a difference (including a 
     difference in active ingredient, route of administration, 
     dosage form, strength, formulation, manufacturing 
     establishment, manufacturing process, or person that 
     manufactures the drug) between a prescription drug for 
     distribution in the United States and the drug for 
     distribution in a permitted country;
       ``(H) refuse to allow an inspection authorized under this 
     section of an establishment that manufactures a qualifying 
     drug that is, or will be, introduced for commercial 
     distribution in a permitted country;
       ``(I) fail to conform to the methods used in, or the 
     facilities used for, the manufacturing, processing, packing, 
     or holding of a qualifying drug that is, or will be, 
     introduced for commercial distribution in a permitted country 
     to good manufacturing practice under this Act;
       ``(J) become a party to a licensing agreement or other 
     agreement related to a qualifying drug that fails to provide 
     for compliance with all requirements of this section with 
     respect to such drug;
       ``(K) enter into a contract that restricts, prohibits, or 
     delays the importation of a qualifying drug under this 
     section;
       ``(L) engage in any other action to restrict, prohibit, or 
     delay the importation of a qualifying drug under this 
     section; or
       ``(M) engage in any other action that the Federal Trade 
     Commission determines to discriminate against a person that 
     engages or attempts to engage in the importation of a 
     qualifying drug under this section.
       ``(2) Referral of potential violations.--The Secretary 
     shall promptly refer to the Federal Trade Commission each 
     potential violation of subparagraph (E), (F), (G), (H), or 
     (I) of paragraph (1) that becomes known to the Secretary.
       ``(3) Affirmative defense.--
       ``(A) Discrimination.--It shall be an affirmative defense 
     to a charge that a manufacturer has discriminated under 
     subparagraph (A), (B), (C), (D), or (M) of paragraph (1) that 
     the higher price charged for a prescription drug sold to a 
     person, the denial, restriction, or delay of supplies of a 
     prescription drug to a person, the refusal to do business 
     with a person, or other discriminatory activity against a 
     person, is not based, in whole or in part, on--
       ``(i) the person exporting or importing a qualifying drug 
     into the United States under this section; or
       ``(ii) the person distributing, selling, or using a 
     qualifying drug imported into the United States under this 
     section.
       ``(B) Drug differences.--It shall be an affirmative defense 
     to a charge that a manufacturer has caused there to be a 
     difference described in subparagraph (G) of paragraph (1) 
     that--
       ``(i) the difference was required by the country in which 
     the drug is distributed;
       ``(ii) the Secretary has determined that the difference was 
     necessary to improve the safety or effectiveness of the drug;
       ``(iii) the person manufacturing the drug for distribution 
     in the United States has given notice to the Secretary under 
     subsection (g)(2)(B)(i) that the drug for distribution in the 
     United States is not different from a drug for distribution 
     in permitted countries whose combined population represents 
     at least 50 percent of the total population of all permitted 
     countries; or
       ``(iv) the difference was not caused, in whole or in part, 
     for the purpose of restricting importation of the drug into 
     the United States under this section.
       ``(4) Effect of subsection.--
       ``(A) Sales in other countries.--This subsection applies 
     only to the sale or distribution of a prescription drug in a 
     country if the manufacturer of the drug chooses to sell or 
     distribute the drug in the country. Nothing in this 
     subsection shall be construed to compel the manufacturer of a 
     drug to distribute or sell the drug in a country.
       ``(B) Discounts to insurers, health plans, pharmacy benefit 
     managers, and covered entities.--Nothing in this subsection 
     shall be construed to--
       ``(i) prevent or restrict a manufacturer of a prescription 
     drug from providing discounts to an insurer, health plan, 
     pharmacy benefit manager in the United States, or covered 
     entity in the drug discount program under section 340B of the 
     Public Health Service Act (42 U.S.C. 256b) in return for 
     inclusion of the drug on a formulary;
       ``(ii) require that such discounts be made available to 
     other purchasers of the prescription drug; or
       ``(iii) prevent or restrict any other measures taken by an 
     insurer, health plan, or pharmacy benefit manager to 
     encourage consumption of such prescription drug.
       ``(C) Charitable contributions.--Nothing in this subsection 
     shall be construed to--
       ``(i) prevent a manufacturer from donating a prescription 
     drug, or supplying a prescription drug at nominal cost, to a 
     charitable or humanitarian organization, including the United 
     Nations and affiliates, or to a government of a foreign 
     country; or
       ``(ii) apply to such donations or supplying of a 
     prescription drug.
       ``(5) Enforcement.--
       ``(A) Unfair or deceptive act or practice.--A violation of 
     this subsection shall be treated as a violation of a rule 
     defining an unfair or deceptive act or practice prescribed 
     under section 18(a)(1)(B) of the Federal Trade Commission Act 
     (15 U.S.C. 57a(a)(1)(B)).
       ``(B) Actions by the commission.--The Federal Trade 
     Commission--
       ``(i) shall enforce this subsection in the same manner, by 
     the same means, and with the same jurisdiction, powers, and 
     duties as though all applicable terms and provisions of the 
     Federal Trade Commission Act (15 U.S.C. 41 et seq.) were 
     incorporated into and made a part of this section; and
       ``(ii) may seek monetary relief threefold the damages 
     sustained, in addition to any other remedy available to the 
     Federal Trade Commission under the Federal Trade Commission 
     Act (15 U.S.C. 41 et seq.).
       ``(6) Actions by states.--
       ``(A) In general.--
       ``(i) Civil actions.--In any case in which the attorney 
     general of a State has reason to believe that an interest of 
     the residents of that State have been adversely affected by 
     any manufacturer that violates paragraph (1), the attorney 
     general of a State may bring a civil action on behalf of the 
     residents of the State, and persons doing business in the 
     State, in a district court of the United States of 
     appropriate jurisdiction to--

       ``(I) enjoin that practice;
       ``(II) enforce compliance with this subsection;
       ``(III) obtain damages, restitution, or other compensation 
     on behalf of residents of the State and persons doing 
     business in the State, including threefold the damages; or
       ``(IV) obtain such other relief as the court may consider 
     to be appropriate.

       ``(ii) Notice.--

       ``(I) In general.--Before filing an action under clause 
     (i), the attorney general of the State involved shall provide 
     to the Federal Trade Commission--

       ``(aa) written notice of that action; and
       ``(bb) a copy of the complaint for that action.

       ``(II) Exemption.--Subclause (I) shall not apply with 
     respect to the filing of an action by an attorney general of 
     a State under this paragraph, if the attorney general 
     determines that it is not feasible to provide the notice 
     described in that subclause before filing of the action. In 
     such case, the attorney general of a State shall provide 
     notice and a copy of the complaint to the Federal Trade

[[Page S8139]]

     Commission at the same time as the attorney general files the 
     action.

       ``(B) Intervention.--
       ``(i) In general.--On receiving notice under subparagraph 
     (A)(ii), the Federal Trade Commission shall have the right to 
     intervene in the action that is the subject of the notice.
       ``(ii) Effect of intervention.--If the Federal Trade 
     Commission intervenes in an action under subparagraph (A), it 
     shall have the right--

       ``(I) to be heard with respect to any matter that arises in 
     that action; and
       ``(II) to file a petition for appeal.

       ``(C) Construction.--For purposes of bringing any civil 
     action under subparagraph (A), nothing in this subsection 
     shall be construed to prevent an attorney general of a State 
     from exercising the powers conferred on the attorney general 
     by the laws of that State to--
       ``(i) conduct investigations;
       ``(ii) administer oaths or affirmations; or
       ``(iii) compel the attendance of witnesses or the 
     production of documentary and other evidence.
       ``(D) Actions by the commission.--In any case in which an 
     action is instituted by or on behalf of the Federal Trade 
     Commission for a violation of paragraph (1), a State may not, 
     during the pendency of that action, institute an action under 
     subparagraph (A) for the same violation against any defendant 
     named in the complaint in that action.
       ``(E) Venue.--Any action brought under subparagraph (A) may 
     be brought in the district court of the United States that 
     meets applicable requirements relating to venue under section 
     1391 of title 28, United States Code.
       ``(F) Service of process.--In an action brought under 
     subparagraph (A), process may be served in any district in 
     which the defendant--
       ``(i) is an inhabitant; or
       ``(ii) may be found.
       ``(G) Measurement of damages.--In any action under this 
     paragraph to enforce a cause of action under this subsection 
     in which there has been a determination that a defendant has 
     violated a provision of this subsection, damages may be 
     proved and assessed in the aggregate by statistical or 
     sampling methods, by the computation of illegal overcharges 
     or by such other reasonable system of estimating aggregate 
     damages as the court in its discretion may permit without the 
     necessity of separately proving the individual claim of, or 
     amount of damage to, persons on whose behalf the suit was 
     brought.
       ``(H) Exclusion on duplicative relief.--The district court 
     shall exclude from the amount of monetary relief awarded in 
     an action under this paragraph brought by the attorney 
     general of a State any amount of monetary relief which 
     duplicates amounts which have been awarded for the same 
     injury.
       ``(7) Effect on antitrust laws.--Nothing in this subsection 
     shall be construed to modify, impair, or supersede the 
     operation of the antitrust laws. For the purpose of this 
     subsection, the term `antitrust laws' has the meaning given 
     it in the first section of the Clayton Act, except that it 
     includes section 5 of the Federal Trade Commission Act to the 
     extent that such section 5 applies to unfair methods of 
     competition.
       ``(8) Manufacturer.--In this subsection, the term 
     `manufacturer' means any entity, including any affiliate or 
     licensee of that entity, that is engaged in--
       ``(A) the production, preparation, propagation, 
     compounding, conversion, or processing of a prescription 
     drug, either directly or indirectly by extraction from 
     substances of natural origin, or independently by means of 
     chemical synthesis, or by a combination of extraction and 
     chemical synthesis; or
       ``(B) the packaging, repackaging, labeling, relabeling, or 
     distribution of a prescription drug.''.
       (b) Prohibited Acts.--The Federal Food, Drug, and Cosmetic 
     Act is amended--
       (1) in section 301 (21 U.S.C. 331), by striking paragraph 
     (aa) and inserting the following:
       ``(aa)(1) The sale or trade by a pharmacist, or by a 
     business organization of which the pharmacist is a part, of a 
     qualifying drug that under section 804(a)(2)(A) was imported 
     by the pharmacist, other than--
       ``(A) a sale at retail made pursuant to dispensing the drug 
     to a customer of the pharmacist or organization; or
       ``(B) a sale or trade of the drug to a pharmacy or a 
     wholesaler registered to import drugs under section 804.
       ``(2) The sale or trade by an individual of a qualifying 
     drug that under section 804(a)(2)(B) was imported by the 
     individual.
       ``(3) The making of a materially false, fictitious, or 
     fraudulent statement or representation, or a material 
     omission, in a notice under clause (i) of section 
     804(g)(2)(B) or in an application required under section 
     804(g)(2)(F), or the failure to submit such a notice or 
     application.
       ``(4) The importation of a drug in violation of a 
     registration condition or other requirement under section 
     804, the falsification of any record required to be 
     maintained, or provided to the Secretary, under such section, 
     or the violation of any registration condition or other 
     requirement under such section.''; and
       (2) in section 303(a) (21 U.S.C. 333(a)), by striking 
     paragraph (6) and inserting the following:
       ``(6) Notwithstanding subsection (a), any person that 
     knowingly violates section 301(i) (2) or (3) or section 
     301(aa)(4) shall be imprisoned not more than 10 years, or 
     fined in accordance with title 18, United States Code, or 
     both.''.
       (c) Amendment of Certain Provisions.--
       (1) In general.--Section 801 of the Federal Food, Drug, and 
     Cosmetic Act (21 U.S.C. 381) is amended by striking 
     subsection (g) and inserting the following:
       ``(g) With respect to a prescription drug that is imported 
     or offered for import into the United States by an individual 
     who is not in the business of such importation, that is not 
     shipped by a registered exporter under section 804, and that 
     is refused admission under subsection (a), the Secretary 
     shall notify the individual that--
       ``(1) the drug has been refused admission because the drug 
     was not a lawful import under section 804;
       ``(2) the drug is not otherwise subject to a waiver of the 
     requirements of subsection (a);
       ``(3) the individual may under section 804 lawfully import 
     certain prescription drugs from exporters registered with the 
     Secretary under section 804; and
       ``(4) the individual can find information about such 
     importation, including a list of registered exporters, on the 
     Internet website of the Food and Drug Administration or 
     through a toll-free telephone number required under section 
     804.''.
       (2) Establishment registration.--Section 510(i) of the 
     Federal Food, Drug, and Cosmetic Act (21 U.S.C. 360(i)) is 
     amended in paragraph (1) by inserting after ``import into the 
     United States'' the following: ``, including a drug that is, 
     or may be, imported or offered for import into the United 
     States under section 804,''.
       (3) Effective date.--The amendments made by this subsection 
     shall take effect on the date that is 90 days after the date 
     of enactment of this Act.
       (d) Exhaustion.--
       (1) In general.--Section 271 of title 35, United States 
     Code, is amended--
       (A) by redesignating subsections (h) and (i) as (i) and 
     (j), respectively; and
       (B) by inserting after subsection (g) the following:
       ``(h) It shall not be an act of infringement to use, offer 
     to sell, or sell within the United States or to import into 
     the United States any patented invention under section 804 of 
     the Federal Food, Drug, and Cosmetic Act that was first sold 
     abroad by or under authority of the owner or licensee of such 
     patent.''.
       (2) Rule of construction.--Nothing in the amendment made by 
     paragraph (1) shall be construed to affect the ability of a 
     patent owner or licensee to enforce their patent, subject to 
     such amendment.
       (e) Effect of Section 804.--
       (1) In general.--Section 804 of the Federal Food, Drug, and 
     Cosmetic Act, as added by subsection (a), shall permit the 
     importation of qualifying drugs (as defined in such section 
     804) into the United States without regard to the status of 
     the issuance of implementing regulations--
       (A) from exporters registered under such section 804 on the 
     date that is 90 days after the date of enactment of this Act; 
     and
       (B) from permitted countries, as defined in such section 
     804, by importers registered under such section 804 on the 
     date that is 1 year after the date of enactment of this Act.
       (2) Review of registration by certain exporters.--
       (A) Review priority.--In the review of registrations 
     submitted under subsection (b) of such section 804, 
     registrations submitted by entities in Canada that are 
     significant exporters of prescription drugs to individuals in 
     the United States as of the date of enactment of this Act 
     will have priority during the 90 day period that begins on 
     such date of enactment.
       (B) Period for review.--During such 90-day period, the 
     reference in subsection (b)(2)(A) of such section 804 to 90 
     days (relating to approval or disapproval of registrations) 
     is, as applied to such entities, deemed to be 30 days.
       (C) Limitation.--That an exporter in Canada exports, or has 
     exported, prescription drugs to individuals in the United 
     States on or before the date that is 90 days after the date 
     of enactment of this Act shall not serve as a basis, in whole 
     or in part, for disapproving a registration under such 
     section 804 from the exporter.
       (D) First year limit on number of exporters.--During the 1-
     year period beginning on the date of enactment of this Act, 
     the Secretary of Health and Human Services (referred to in 
     this section as the ``Secretary'') may limit the number of 
     registered exporters under such section 804 to not less than 
     50, so long as the Secretary gives priority to those 
     exporters with demonstrated ability to process a high volume 
     of shipments of drugs to individuals in the United States.
       (E) Second year limit on number of exporters.--During the 
     1-year period beginning on the date that is 1 year after the 
     date of enactment of this Act, the Secretary may limit the 
     number of registered exporters under such section 804 to not 
     less than 100, so long as the Secretary gives priority to 
     those exporters with demonstrated ability to process a high 
     volume of shipments of drugs to individuals in the United 
     States.
       (F) Further limit on number of exporters.--During any 1-
     year period beginning on a date that is 2 or more years after 
     the date of enactment of this Act, the Secretary may limit 
     the number of registered exporters under such section 804 to 
     not less than 25

[[Page S8140]]

     more than the number of such exporters during the previous 1-
     year period, so long as the Secretary gives priority to those 
     exporters with demonstrated ability to process a high volume 
     of shipments of drugs to individuals in the United States.
       (3) Limits on number of importers.--
       (A) First year limit on number of importers.--During the 1-
     year period beginning on the date that is 1 year after the 
     date of enactment of this Act, the Secretary may limit the 
     number of registered importers under such section 804 to not 
     less than 100 (of which at least a significant number shall 
     be groups of pharmacies, to the extent feasible given the 
     applications submitted by such groups), so long as the 
     Secretary gives priority to those importers with demonstrated 
     ability to process a high volume of shipments of drugs 
     imported into the United States.
       (B) Second year limit on number of importers.--During the 
     1-year period beginning on the date that is 2 years after the 
     date of enactment of this Act, the Secretary may limit the 
     number of registered importers under such section 804 to not 
     less than 200 (of which at least a significant number shall 
     be groups of pharmacies, to the extent feasible given the 
     applications submitted by such groups), so long as the 
     Secretary gives priority to those importers with demonstrated 
     ability to process a high volume of shipments of drugs into 
     the United States.
       (C) Further limit on number of importers.--During any 1-
     year period beginning on a date that is 3 or more years after 
     the date of enactment of this Act, the Secretary may limit 
     the number of registered importers under such section 804 to 
     not less than 50 more (of which at least a significant number 
     shall be groups of pharmacies, to the extent feasible given 
     the applications submitted by such groups) than the number of 
     such importers during the previous 1-year period, so long as 
     the Secretary gives priority to those importers with 
     demonstrated ability to process a high volume of shipments of 
     drugs to the United States.
       (4) Notices for drugs for import from canada.--The notice 
     with respect to a qualifying drug introduced for commercial 
     distribution in Canada as of the date of enactment of this 
     Act that is required under subsection (g)(2)(B)(i) of such 
     section 804 shall be submitted to the Secretary not later 
     than 30 days after the date of enactment of this Act if--
       (A) the U.S. label drug (as defined in such section 804) 
     for the qualifying drug is 1 of the 100 prescription drugs 
     with the highest dollar volume of sales in the United States 
     based on the 12 calendar month period most recently completed 
     before the date of enactment of this Act; or
       (B) the notice is a notice under subsection 
     (g)(2)(B)(i)(II) of such section 804.
       (5) Notice for drugs for import from other countries.--The 
     notice with respect to a qualifying drug introduced for 
     commercial distribution in a permitted country other than 
     Canada as of the date of enactment of this Act that is 
     required under subsection (g)(2)(B)(i) of such section 804 
     shall be submitted to the Secretary not later than 180 days 
     after the date of enactment of this Act if--
       (A) the U.S. label drug for the qualifying drug is 1 of the 
     100 prescription drugs with the highest dollar volume of 
     sales in the United States based on the 12 calendar month 
     period that is first completed on the date that is 120 days 
     after the date of enactment of this Act; or
       (B) the notice is a notice under subsection 
     (g)(2)(B)(i)(II) of such section 804.
       (6) Notice for other drugs for import.--
       (A) Guidance on submission dates.--The Secretary shall by 
     guidance establish a series of submission dates for the 
     notices under subsection (g)(2)(B)(i) of such section 804 
     with respect to qualifying drugs introduced for commercial 
     distribution as of the date of enactment of this Act and that 
     are not required to be submitted under paragraph (4) or (5).
       (B) Consistent and efficient use of resources.--The 
     Secretary shall establish the dates described under 
     subparagraph (A) so that such notices described under 
     subparagraph (A) are submitted and reviewed at a rate that 
     allows consistent and efficient use of the resources and 
     staff available to the Secretary for such reviews. The 
     Secretary may condition the requirement to submit such a 
     notice, and the review of such a notice, on the submission by 
     a registered exporter or a registered importer to the 
     Secretary of a notice that such exporter or importer intends 
     to import such qualifying drug to the United States under 
     such section 804.
       (C) Priority for drugs with higher sales.--The Secretary 
     shall establish the dates described under subparagraph (A) so 
     that the Secretary reviews the notices described under such 
     subparagraph with respect to qualifying drugs with higher 
     dollar volume of sales in the United States before the 
     notices with respect to drugs with lower sales in the United 
     States.
       (7) Notices for drugs approved after effective date.--The 
     notice required under subsection (g)(2)(B)(i) of such section 
     804 for a qualifying drug first introduced for commercial 
     distribution in a permitted country (as defined in such 
     section 804) after the date of enactment of this Act shall be 
     submitted to and reviewed by the Secretary as provided under 
     subsection (g)(2)(B) of such section 804, without regard to 
     paragraph (4), (5), or (6).
       (8) Report.--Beginning with the first full fiscal year 
     after the date of enactment of this Act, not later than 90 
     days after the end of each fiscal year during which the 
     Secretary reviews a notice referred to in paragraph (4), (5), 
     or (6), the Secretary shall submit a report to Congress 
     concerning the progress of the Food and Drug Administration 
     in reviewing the notices referred to in paragraphs (4), (5), 
     and (6).
       (9) User fees.--
       (A) Exporters.--When establishing an aggregate total of 
     fees to be collected from exporters under subsection (f)(2) 
     of such section 804, the Secretary shall, under subsection 
     (f)(3)(C)(i) of such section 804, estimate the total price of 
     drugs imported under subsection (a) of such section 804 into 
     the United States by registered exporters during the first 
     fiscal year in which this title takes effect to be an amount 
     equal to the amount which bears the same ratio to 
     $1,000,000,000 as the number of days in such fiscal year 
     during which this title is effective bears to 365.
       (B) Importers.--When establishing an aggregate total of 
     fees to be collected from importers under subsection (e)(2) 
     of such section 804, the Secretary shall, under subsection 
     (e)(3)(C)(i) of such section 804, estimate the total price of 
     drugs imported under subsection (a) of such section 804 into 
     the United States by registered importers during--
       (i) the first fiscal year in which this title takes effect 
     to be an amount equal to the amount which bears the same 
     ratio to $1,000,000,000 as the number of days in such fiscal 
     year during which this title is effective bears to 365; and
       (ii) the second fiscal year in which this title is in 
     effect to be $3,000,000,000.
       (C) Second year adjustment.--
       (i) Reports.--Not later than February 20 of the second 
     fiscal year in which this title is in effect, registered 
     importers shall report to the Secretary the total price and 
     the total volume of drugs imported to the United States by 
     the importer during the 4-month period from October 1 through 
     January 31 of such fiscal year.
       (ii) Reestimate.--Notwithstanding subsection (e)(3)(C)(ii) 
     of such section 804 or subparagraph (B), the Secretary shall 
     reestimate the total price of qualifying drugs imported under 
     subsection (a) of such section 804 into the United States by 
     registered importers during the second fiscal year in which 
     this title is in effect. Such reestimate shall be equal to--

       (I) the total price of qualifying drugs imported by each 
     importer as reported under clause (i); multiplied by
       (II) 3.

       (iii) Adjustment.--The Secretary shall adjust the fee due 
     on April 1 of the second fiscal year in which this title is 
     in effect, from each importer so that the aggregate total of 
     fees collected under subsection (e)(2) for such fiscal year 
     does not exceed the total price of qualifying drugs imported 
     under subsection (a) of such section 804 into the United 
     States by registered importers during such fiscal year as 
     reestimated under clause (ii).
       (D) Failure to pay fees.--Notwithstanding any other 
     provision of this section, the Secretary may prohibit a 
     registered importer or exporter that is required to pay user 
     fees under subsection (e) or (f) of such section 804 and that 
     fails to pay such fees within 30 days after the date on which 
     it is due, from importing or offering for importation a 
     qualifying drug under such section 804 until such fee is 
     paid.
       (E) Annual report.--
       (i) Food and drug administration.--Not later than 180 days 
     after the end of each fiscal year during which fees are 
     collected under subsection (e), (f), or (g)(2)(B)(iv) of such 
     section 804, the Secretary shall prepare and submit to the 
     House of Representatives and the Senate a report on the 
     implementation of the authority for such fees during such 
     fiscal year and the use, by the Food and Drug Administration, 
     of the fees collected for the fiscal year for which the 
     report is made and credited to the Food and Drug 
     Administration.
       (ii) Customs and border protection.--Not later than 180 
     days after the end of each fiscal year during which fees are 
     collected under subsection (e) or (f) of such section 804, 
     the Secretary of Homeland Security, in consultation with the 
     Secretary of the Treasury, shall prepare and submit to the 
     House of Representatives and the Senate a report on the use, 
     by the Bureau of Customs and Border Protection, of the fees, 
     if any, transferred by the Secretary to the Bureau of Customs 
     and Border Protection for the fiscal year for which the 
     report is made.
       (10) Special rule regarding importation by individuals.--
       (A) In general.--Notwithstanding any provision of this 
     title (or an amendment made by this title), the Secretary 
     shall expedite the designation of any additional permitted 
     countries from which an individual may import a qualifying 
     drug into the United States under such section 804 if any 
     action implemented by the Government of Canada has the effect 
     of limiting or prohibiting the importation of qualifying 
     drugs into the United States from Canada.
       (B) Timing and criteria.--The Secretary shall designate 
     such additional permitted countries under subparagraph (A)--
       (i) not later than 6 months after the date of the action by 
     the Government of Canada described under such subparagraph; 
     and
       (ii) using the criteria described under subsection 
     (a)(4)(D)(i)(II) of such section 804.
       (f) Implementation of Section 804.--

[[Page S8141]]

       (1) Interim rule.--The Secretary may promulgate an interim 
     rule for implementing section 804 of the Federal Food, Drug, 
     and Cosmetic Act, as added by subsection (a) of this section.
       (2) No notice of proposed rulemaking.--The interim rule 
     described under paragraph (1) may be developed and 
     promulgated by the Secretary without providing general notice 
     of proposed rulemaking.
       (3) Final rule.--Not later than 1 year after the date on 
     which the Secretary promulgates an interim rule under 
     paragraph (1), the Secretary shall, in accordance with 
     procedures under section 553 of title 5, United States Code, 
     promulgate a final rule for implementing such section 804, 
     which may incorporate by reference provisions of the interim 
     rule provided for under paragraph (1), to the extent that 
     such provisions are not modified.
       (g) Consumer Education.--The Secretary shall carry out 
     activities that educate consumers--
       (1) with regard to the availability of qualifying drugs for 
     import for personal use from an exporter registered with and 
     approved by the Food and Drug Administration under section 
     804 of the Federal Food, Drug, and Cosmetic Act, as added by 
     this section, including information on how to verify whether 
     an exporter is registered and approved by use of the Internet 
     website of the Food and Drug Administration and the toll-free 
     telephone number required by this title;
       (2) that drugs that consumers attempt to import from an 
     exporter that is not registered with and approved by the Food 
     and Drug Administration can be seized by the United States 
     Customs Service and destroyed, and that such drugs may be 
     counterfeit, unapproved, unsafe, or ineffective;
       (3) with regard to the suspension and termination of any 
     registration of a registered importer or exporter under such 
     section 804; and
       (4) with regard to the availability at domestic retail 
     pharmacies of qualifying drugs imported under such section 
     804 by domestic wholesalers and pharmacies registered with 
     and approved by the Food and Drug Administration.
       (h) Effect on Administration Practices.--Notwithstanding 
     any provision of this title (and the amendments made by this 
     title), the practices and policies of the Food and Drug 
     Administration and Bureau of Customs and Border Protection, 
     in effect on January 1, 2004, with respect to the importation 
     of prescription drugs into the United States by an 
     individual, on the person of such individual, for personal 
     use, shall remain in effect.
       (i) Report to Congress.--The Federal Trade Commission 
     shall, on an annual basis, submit to Congress a report that 
     describes any action taken during the period for which the 
     report is being prepared to enforce the provisions of section 
     804(n) of the Federal Food, Drug, and Cosmetic Act (as added 
     by this title), including any pending investigations or civil 
     actions under such section.

     SEC. 505. DISPOSITION OF CERTAIN DRUGS DENIED ADMISSION INTO 
                   UNITED STATES.

       (a) In General.--Chapter VIII of the Federal Food, Drug, 
     and Cosmetic Act (21 U.S.C. 381 et seq.), as amended by this 
     Act, is further amended by adding at the end the following 
     section:

     ``SEC. 810. DISPOSITION OF CERTAIN DRUGS DENIED ADMISSION.

       ``(a) In General.--The Secretary of Homeland Security shall 
     deliver to the Secretary a shipment of drugs that is imported 
     or offered for import into the United States if--
       ``(1) the shipment has a declared value of less than 
     $10,000; and
       ``(2)(A) the shipping container for such drugs does not 
     bear the markings required under section 804(d)(2); or
       ``(B) the Secretary has requested delivery of such shipment 
     of drugs.
       ``(b) No Bond or Export.--Section 801(b) does not authorize 
     the delivery to the owner or consignee of drugs delivered to 
     the Secretary under subsection (a) pursuant to the execution 
     of a bond, and such drugs may not be exported.
       ``(c) Destruction of Violative Shipment.--The Secretary 
     shall destroy a shipment of drugs delivered by the Secretary 
     of Homeland Security to the Secretary under subsection (a) 
     if--
       ``(1) in the case of drugs that are imported or offered for 
     import from a registered exporter under section 804, the 
     drugs are in violation of any standard described in section 
     804(g)(5); or
       ``(2) in the case of drugs that are not imported or offered 
     for import from a registered exporter under section 804, the 
     drugs are in violation of a standard referred to in section 
     801(a) or 801(d)(1).
       ``(d) Certain Procedures.--
       ``(1) In general.--The delivery and destruction of drugs 
     under this section may be carried out without notice to the 
     importer, owner, or consignee of the drugs except as required 
     by section 801(g) or section 804(i)(2). The issuance of 
     receipts for the drugs, and recordkeeping activities 
     regarding the drugs, may be carried out on a summary basis.
       ``(2) Objective of procedures.--Procedures promulgated 
     under paragraph (1) shall be designed toward the objective of 
     ensuring that, with respect to efficiently utilizing Federal 
     resources available for carrying out this section, a 
     substantial majority of shipments of drugs subject to 
     described in subsection (c) are identified and destroyed.
       ``(e) Evidence Exception.--Drugs may not be destroyed under 
     subsection (c) to the extent that the Attorney General of the 
     United States determines that the drugs should be preserved 
     as evidence or potential evidence with respect to an offense 
     against the United States.
       ``(f) Rule of Construction.--This section may not be 
     construed as having any legal effect on applicable law with 
     respect to a shipment of drugs that is imported or offered 
     for import into the United States and has a declared value 
     equal to or greater than $10,000.''.
       (b) Procedures.--Procedures for carrying out section 810 of 
     the Federal Food, Drug, and Cosmetic Act, as added by 
     subsection (a), shall be established not later than 90 days 
     after the date of the enactment of this Act.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date that is 90 days after the date 
     of enactment of this Act.

     SEC. 506. WHOLESALE DISTRIBUTION OF DRUGS; STATEMENTS 
                   REGARDING PRIOR SALE, PURCHASE, OR TRADE.

       (a) Striking of Exemptions; Applicability to Registered 
     Exporters.--Section 503(e) of the Federal Food, Drug, and 
     Cosmetic Act (21 U.S.C. 353(e)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``and who is not the manufacturer or an 
     authorized distributor of record of such drug'';
       (B) by striking ``to an authorized distributor of record 
     or''; and
       (C) by striking subparagraph (B) and inserting the 
     following:
       ``(B) The fact that a drug subject to subsection (b) is 
     exported from the United States does not with respect to such 
     drug exempt any person that is engaged in the business of the 
     wholesale distribution of the drug from providing the 
     statement described in subparagraph (A) to the person that 
     receives the drug pursuant to the export of the drug.
       ``(C)(i) The Secretary shall by regulation establish 
     requirements that supersede subparagraph (A) (referred to in 
     this subparagraph as `alternative requirements') to identify 
     the chain of custody of a drug subject to subsection (b) from 
     the manufacturer of the drug throughout the wholesale 
     distribution of the drug to a pharmacist who intends to sell 
     the drug at retail if the Secretary determines that the 
     alternative requirements, which may include standardized 
     anti-counterfeiting or track-and-trace technologies, will 
     identify such chain of custody or the identity of the 
     discrete package of the drug from which the drug is dispensed 
     with equal or greater certainty to the requirements of 
     subparagraph (A), and that the alternative requirements are 
     economically and technically feasible.
       ``(ii) When the Secretary promulgates a final rule to 
     establish such alternative requirements, the final rule in 
     addition shall, with respect to the registration condition 
     established in clause (i) of section 804(c)(3)(B), establish 
     a condition equivalent to the alternative requirements, and 
     such equivalent condition may be met in lieu of the 
     registration condition established in such clause (i).'';
       (2) in paragraph (2)(A), by adding at the end the 
     following: ``The preceding sentence may not be construed as 
     having any applicability with respect to a registered 
     exporter under section 804.''; and
       (3) in paragraph (3), by striking ``and subsection (d)--'' 
     in the matter preceding subparagraph (A) and all that follows 
     through ``the term `wholesale distribution' means'' in 
     subparagraph (B) and inserting the following: ``and 
     subsection (d), the term `wholesale distribution' means''.
       (b) Conforming Amendment.--Section 503(d) of the Federal 
     Food, Drug, and Cosmetic Act (21 U.S.C. 353(d)) is amended by 
     adding at the end the following:
       ``(4) Each manufacturer of a drug subject to subsection (b) 
     shall maintain at its corporate offices a current list of the 
     authorized distributors of record of such drug.
       ``(5) For purposes of this subsection, the term `authorized 
     distributors of record' means those distributors with whom a 
     manufacturer has established an ongoing relationship to 
     distribute such manufacturer's products.''.
       (c) Effective Date.--
       (1) In general.--The amendments made by paragraphs (1) and 
     (3) of subsection (a) and by subsection (b) shall take effect 
     on January 1, 2013.
       (2) Drugs imported by registered importers under section 
     804.--Notwithstanding paragraph (1), the amendments made by 
     paragraphs (1) and (3) of subsection (a) and by subsection 
     (b) shall take effect on the date that is 90 days after the 
     date of enactment of this Act with respect to qualifying 
     drugs imported under section 804 of the Federal Food, Drug, 
     and Cosmetic Act, as added by section 504.
       (3) Effect with respect to registered exporters.--The 
     amendment made by subsection (a)(2) shall take effect on the 
     date that is 90 days after the date of enactment of this Act.
       (4) Alternative requirements.--The Secretary shall issue 
     regulations to establish the alternative requirements, 
     referred to in the amendment made by subsection (a)(1), that 
     take effect not later than January 1, 2013.
       (5) Intermediate requirements.--The Secretary shall by 
     regulation require the use of standardized anti-
     counterfeiting or track-and-trace technologies on 
     prescription drugs at the case and pallet level effective not

[[Page S8142]]

     later than 1 year after the date of enactment of this Act.
       (6) Additional requirements.--
       (A) In general.--Notwithstanding any other provision of 
     this section, the Secretary shall, not later than 18 months 
     after the date of enactment of this Act, require that the 
     packaging of any prescription drug incorporates--
       (i) a standardized numerical identifier unique to each 
     package of such drug, applied at the point of manufacturing 
     and repackaging (in which case the numerical identifier shall 
     be linked to the numerical identifier applied at the point of 
     manufacturing); and
       (ii)(I) overt optically variable counterfeit-resistant 
     technologies that--

       (aa) are visible to the naked eye, providing for visual 
     identification of product authenticity without the need for 
     readers, microscopes, lighting devices, or scanners;
       (bb) are similar to that used by the Bureau of Engraving 
     and Printing to secure United States currency;
       (cc) are manufactured and distributed in a highly secure, 
     tightly controlled environment; and
       (dd) incorporate additional layers of nonvisible convert 
     security features up to and including forensic capability, as 
     described in subparagraph (B); or

       (II) technologies that have a function of security 
     comparable to that described in subclause (I), as determined 
     by the Secretary.
       (B) Standards for packaging.--For the purpose of making it 
     more difficult to counterfeit the packaging of drugs subject 
     to this paragraph, the manufacturers of such drugs shall 
     incorporate the technologies described in subparagraph (A) 
     into at least 1 additional element of the physical packaging 
     of the drugs, including blister packs, shrink wrap, package 
     labels, package seals, bottles, and boxes.

     SEC. 507. INTERNET SALES OF PRESCRIPTION DRUGS.

       (a) In General.--Chapter V of the Federal Food, Drug, and 
     Cosmetic Act (21 U.S.C. 351 et seq.) is amended by inserting 
     after section 503B the following:

     ``SEC. 503C. INTERNET SALES OF PRESCRIPTION DRUGS.

       ``(a) Requirements Regarding Information on Internet 
     Site.--
       ``(1) In general.--A person may not dispense a prescription 
     drug pursuant to a sale of the drug by such person if--
       ``(A) the purchaser of the drug submitted the purchase 
     order for the drug, or conducted any other part of the sales 
     transaction for the drug, through an Internet site;
       ``(B) the person dispenses the drug to the purchaser by 
     mailing or shipping the drug to the purchaser; and
       ``(C) such site, or any other Internet site used by such 
     person for purposes of sales of a prescription drug, fails to 
     meet each of the requirements specified in paragraph (2), 
     other than a site or pages on a site that--
       ``(i) are not intended to be accessed by purchasers or 
     prospective purchasers; or
       ``(ii) provide an Internet information location tool within 
     the meaning of section 231(e)(5) of the Communications Act of 
     1934 (47 U.S.C. 231(e)(5)).
       ``(2) Requirements.--With respect to an Internet site, the 
     requirements referred to in subparagraph (C) of paragraph (1) 
     for a person to whom such paragraph applies are as follows:
       ``(A) Each page of the site shall include either the 
     following information or a link to a page that provides the 
     following information:
       ``(i) The name of such person.
       ``(ii) Each State in which the person is authorized by law 
     to dispense prescription drugs.
       ``(iii) The address and telephone number of each place of 
     business of the person with respect to sales of prescription 
     drugs through the Internet, other than a place of business 
     that does not mail or ship prescription drugs to purchasers.
       ``(iv) The name of each individual who serves as a 
     pharmacist for prescription drugs that are mailed or shipped 
     pursuant to the site, and each State in which the individual 
     is authorized by law to dispense prescription drugs.
       ``(v) If the person provides for medical consultations 
     through the site for purposes of providing prescriptions, the 
     name of each individual who provides such consultations; each 
     State in which the individual is licensed or otherwise 
     authorized by law to provide such consultations or practice 
     medicine; and the type or types of health professions for 
     which the individual holds such licenses or other 
     authorizations.
       ``(B) A link to which paragraph (1) applies shall be 
     displayed in a clear and prominent place and manner, and 
     shall include in the caption for the link the words 
     `licensing and contact information'.
       ``(b) Internet Sales Without Appropriate Medical 
     Relationships.--
       ``(1) In general.--Except as provided in paragraph (2), a 
     person may not dispense a prescription drug, or sell such a 
     drug, if--
       ``(A) for purposes of such dispensing or sale, the 
     purchaser communicated with the person through the Internet;
       ``(B) the patient for whom the drug was dispensed or 
     purchased did not, when such communications began, have a 
     prescription for the drug that is valid in the United States;
       ``(C) pursuant to such communications, the person provided 
     for the involvement of a practitioner, or an individual 
     represented by the person as a practitioner, and the 
     practitioner or such individual issued a prescription for the 
     drug that was purchased;
       ``(D) the person knew, or had reason to know, that the 
     practitioner or the individual referred to in subparagraph 
     (C) did not, when issuing the prescription, have a qualifying 
     medical relationship with the patient; and
       ``(E) the person received payment for the dispensing or 
     sale of the drug.
     For purposes of subparagraph (E), payment is received if 
     money or other valuable consideration is received.
       ``(2) Exceptions.--Paragraph (1) does not apply to--
       ``(A) the dispensing or selling of a prescription drug 
     pursuant to telemedicine practices sponsored by--
       ``(i) a hospital that has in effect a provider agreement 
     under title XVIII of the Social Security Act (relating to the 
     Medicare program); or
       ``(ii) a group practice that has not fewer than 100 
     physicians who have in effect provider agreements under such 
     title; or
       ``(B) the dispensing or selling of a prescription drug 
     pursuant to practices that promote the public health, as 
     determined by the Secretary by regulation.
       ``(3) Qualifying medical relationship.--
       ``(A) In general.--With respect to issuing a prescription 
     for a drug for a patient, a practitioner has a qualifying 
     medical relationship with the patient for purposes of this 
     section if--
       ``(i) at least one in-person medical evaluation of the 
     patient has been conducted by the practitioner; or
       ``(ii) the practitioner conducts a medical evaluation of 
     the patient as a covering practitioner.
       ``(B) In-person medical evaluation.--A medical evaluation 
     by a practitioner is an in-person medical evaluation for 
     purposes of this section if the practitioner is in the 
     physical presence of the patient as part of conducting the 
     evaluation, without regard to whether portions of the 
     evaluation are conducted by other health professionals.
       ``(C) Covering practitioner.--With respect to a patient, a 
     practitioner is a covering practitioner for purposes of this 
     section if the practitioner conducts a medical evaluation of 
     the patient at the request of a practitioner who has 
     conducted at least one in-person medical evaluation of the 
     patient and is temporarily unavailable to conduct the 
     evaluation of the patient. A practitioner is a covering 
     practitioner without regard to whether the practitioner has 
     conducted any in-person medical evaluation of the patient 
     involved.
       ``(4) Rules of construction.--
       ``(A) Individuals represented as practitioners.--A person 
     who is not a practitioner (as defined in subsection (e)(1)) 
     lacks legal capacity under this section to have a qualifying 
     medical relationship with any patient.
       ``(B) Standard practice of pharmacy.--Paragraph (1) may not 
     be construed as prohibiting any conduct that is a standard 
     practice in the practice of pharmacy.
       ``(C) Applicability of requirements.--Paragraph (3) may not 
     be construed as having any applicability beyond this section, 
     and does not affect any State law, or interpretation of State 
     law, concerning the practice of medicine.
       ``(c) Actions by States.--
       ``(1) In general.--Whenever an attorney general of any 
     State has reason to believe that the interests of the 
     residents of that State have been or are being threatened or 
     adversely affected because any person has engaged or is 
     engaging in a pattern or practice that violates section 
     301(l), the State may bring a civil action on behalf of its 
     residents in an appropriate district court of the United 
     States to enjoin such practice, to enforce compliance with 
     such section (including a nationwide injunction), to obtain 
     damages, restitution, or other compensation on behalf of 
     residents of such State, to obtain reasonable attorneys fees 
     and costs if the State prevails in the civil action, or to 
     obtain such further and other relief as the court may deem 
     appropriate.
       ``(2) Notice.--The State shall serve prior written notice 
     of any civil action under paragraph (1) or (5)(B) upon the 
     Secretary and provide the Secretary with a copy of its 
     complaint, except that if it is not feasible for the State to 
     provide such prior notice, the State shall serve such notice 
     immediately upon instituting such action. Upon receiving a 
     notice respecting a civil action, the Secretary shall have 
     the right--
       ``(A) to intervene in such action;
       ``(B) upon so intervening, to be heard on all matters 
     arising therein; and
       ``(C) to file petitions for appeal.
       ``(3) Construction.--For purposes of bringing any civil 
     action under paragraph (1), nothing in this chapter shall 
     prevent an attorney general of a State from exercising the 
     powers conferred on the attorney general by the laws of such 
     State to conduct investigations or to administer oaths or 
     affirmations or to compel the attendance of witnesses or the 
     production of documentary and other evidence.
       ``(4) Venue; service of process.--Any civil action brought 
     under paragraph (1) in a district court of the United States 
     may be brought in the district in which the defendant is 
     found, is an inhabitant, or transacts business or wherever 
     venue is proper under section 1391 of title 28, United States 
     Code. Process in such an action may be served in any district 
     in which the defendant is an inhabitant or in which the 
     defendant may be found.
       ``(5) Actions by other state officials.--

[[Page S8143]]

       ``(A) Nothing contained in this section shall prohibit an 
     authorized State official from proceeding in State court on 
     the basis of an alleged violation of any civil or criminal 
     statute of such State.
       ``(B) In addition to actions brought by an attorney general 
     of a State under paragraph (1), such an action may be brought 
     by officers of such State who are authorized by the State to 
     bring actions in such State on behalf of its residents.
       ``(d) Effect of Section.--This section shall not apply to a 
     person that is a registered exporter under section 804.
       ``(e) General Definitions.--For purposes of this section:
       ``(1) The term `practitioner' means a practitioner referred 
     to in section 503(b)(1) with respect to issuing a written or 
     oral prescription.
       ``(2) The term `prescription drug' means a drug that is 
     described in section 503(b)(1).
       ``(3) The term `qualifying medical relationship', with 
     respect to a practitioner and a patient, has the meaning 
     indicated for such term in subsection (b).
       ``(f) Internet-Related Definitions.--
       ``(1) In general.--For purposes of this section:
       ``(A) The term `Internet' means collectively the myriad of 
     computer and telecommunications facilities, including 
     equipment and operating software, which comprise the 
     interconnected world-wide network of networks that employ the 
     transmission control protocol/internet protocol, or any 
     predecessor or successor protocols to such protocol, to 
     communicate information of all kinds by wire or radio.
       ``(B) The term `link', with respect to the Internet, means 
     one or more letters, words, numbers, symbols, or graphic 
     items that appear on a page of an Internet site for the 
     purpose of serving, when activated, as a method for executing 
     an electronic command--
       ``(i) to move from viewing one portion of a page on such 
     site to another portion of the page;
       ``(ii) to move from viewing one page on such site to 
     another page on such site; or
       ``(iii) to move from viewing a page on one Internet site to 
     a page on another Internet site.
       ``(C) The term `page', with respect to the Internet, means 
     a document or other file accessed at an Internet site.
       ``(D)(i) The terms `site' and `address', with respect to 
     the Internet, mean a specific location on the Internet that 
     is determined by Internet Protocol numbers. Such term 
     includes the domain name, if any.
       ``(ii) The term `domain name' means a method of 
     representing an Internet address without direct reference to 
     the Internet Protocol numbers for the address, including 
     methods that use designations such as `.com', `.edu', `.gov', 
     `.net', or `.org'.
       ``(iii) The term `Internet Protocol numbers' includes any 
     successor protocol for determining a specific location on the 
     Internet.
       ``(2) Authority of secretary.--The Secretary may by 
     regulation modify any definition under paragraph (1) to take 
     into account changes in technology.
       ``(g) Interactive Computer Service; Advertising.--No 
     provider of an interactive computer service, as defined in 
     section 230(f)(2) of the Communications Act of 1934 (47 
     U.S.C. 230(f)(2)), or of advertising services shall be liable 
     under this section for dispensing or selling prescription 
     drugs in violation of this section on account of another 
     person's selling or dispensing such drugs, provided that the 
     provider of the interactive computer service or of 
     advertising services does not own or exercise corporate 
     control over such person.
       ``(h) No Effect on Other Requirements; Coordination.--The 
     requirements of this section are in addition to, and do not 
     supersede, any requirements under the Controlled Substances 
     Act or the Controlled Substances Import and Export Act (or 
     any regulation promulgated under either such Act) regarding 
     Internet pharmacies and controlled substances. In 
     promulgating regulations to carry out this section, the 
     Secretary shall coordinate with the Attorney General to 
     ensure that such regulations do not duplicate or conflict 
     with the requirements described in the previous sentence, and 
     that such regulations and requirements coordinate to the 
     extent practicable.''.
       (b) Inclusion as Prohibited Act.--Section 301 of the 
     Federal Food, Drug, and Cosmetic Act (21 U.S.C. 331) is 
     amended by inserting after paragraph (k) the following:
       ``(l) The dispensing or selling of a prescription drug in 
     violation of section 503C.''.
       (c) Internet Sales of Prescription Drugs; Consideration by 
     Secretary of Practices and Procedures for Certification of 
     Legitimate Businesses.--In carrying out section 503C of the 
     Federal Food, Drug, and Cosmetic Act (as added by subsection 
     (a) of this section), the Secretary of Health and Human 
     Services shall take into consideration the practices and 
     procedures of public or private entities that certify that 
     businesses selling prescription drugs through Internet sites 
     are legitimate businesses, including practices and procedures 
     regarding disclosure formats and verification programs.
       (d) Reports Regarding Internet-Related Violations of 
     Federal and State Laws on Dispensing of Drugs.--
       (1) In general.--The Secretary of Health and Human Services 
     (referred to in this subsection as the ``Secretary'') shall, 
     pursuant to the submission of an application meeting the 
     criteria of the Secretary, make an award of a grant or 
     contract to the National Clearinghouse on Internet 
     Prescribing (operated by the Federation of State Medical 
     Boards) for the purpose of--
       (A) identifying Internet sites that appear to be in 
     violation of Federal or State laws concerning the dispensing 
     of drugs;
       (B) reporting such sites to State medical licensing boards 
     and State pharmacy licensing boards, and to the Attorney 
     General and the Secretary, for further investigation; and
       (C) submitting, for each fiscal year for which the award 
     under this subsection is made, a report to the Secretary 
     describing investigations undertaken with respect to 
     violations described in subparagraph (A).
       (2) Authorization of appropriations.--For the purpose of 
     carrying out paragraph (1), there is authorized to be 
     appropriated $100,000 for each of the first 3 fiscal years in 
     which this section is in effect.
       (e) Effective Date.--The amendments made by subsections (a) 
     and (b) take effect 90 days after the date of enactment of 
     this Act, without regard to whether a final rule to implement 
     such amendments has been promulgated by the Secretary of 
     Health and Human Services under section 701(a) of the Federal 
     Food, Drug, and Cosmetic Act. The preceding sentence may not 
     be construed as affecting the authority of such Secretary to 
     promulgate such a final rule.

     SEC. 508. PROHIBITING PAYMENTS TO UNREGISTERED FOREIGN 
                   PHARMACIES.

       (a) In General.--Section 303 of the Federal Food, Drug, and 
     Cosmetic Act (21 U.S.C. 333) is amended by adding at the end 
     the following:
       ``(h) Restricted Transactions.--
       ``(1) In general.--The introduction of restricted 
     transactions into a payment system or the completion of 
     restricted transactions using a payment system is prohibited.
       ``(2) Payment system.--
       ``(A) In general.--The term `payment system' means a system 
     used by a person described in subparagraph (B) to effect a 
     credit transaction, electronic fund transfer, or money 
     transmitting service that may be used in connection with, or 
     to facilitate, a restricted transaction, and includes--
       ``(i) a credit card system;
       ``(ii) an international, national, regional, or local 
     network used to effect a credit transaction, an electronic 
     fund transfer, or a money transmitting service; and
       ``(iii) any other system that is centrally managed and is 
     primarily engaged in the transmission and settlement of 
     credit transactions, electronic fund transfers, or money 
     transmitting services.
       ``(B) Persons described.--A person referred to in 
     subparagraph (A) is--
       ``(i) a creditor;
       ``(ii) a credit card issuer;
       ``(iii) a financial institution;
       ``(iv) an operator of a terminal at which an electronic 
     fund transfer may be initiated;
       ``(v) a money transmitting business; or
       ``(vi) a participant in an international, national, 
     regional, or local network used to effect a credit 
     transaction, electronic fund transfer, or money transmitting 
     service.
       ``(3) Restricted transaction.--The term `restricted 
     transaction' means a transaction or transmittal, on behalf of 
     an individual who places an unlawful drug importation request 
     to any person engaged in the operation of an unregistered 
     foreign pharmacy, of--
       ``(A) credit, or the proceeds of credit, extended to or on 
     behalf of the individual for the purpose of the unlawful drug 
     importation request (including credit extended through the 
     use of a credit card);
       ``(B) an electronic fund transfer or funds transmitted by 
     or through a money transmitting business, or the proceeds of 
     an electronic fund transfer or money transmitting service, 
     from or on behalf of the individual for the purpose of the 
     unlawful drug importation request;
       ``(C) a check, draft, or similar instrument which is drawn 
     by or on behalf of the individual for the purpose of the 
     unlawful drug importation request and is drawn on or payable 
     at or through any financial institution; or
       ``(D) the proceeds of any other form of financial 
     transaction (identified by the Board by regulation) that 
     involves a financial institution as a payor or financial 
     intermediary on behalf of or for the benefit of the 
     individual for the purpose of the unlawful drug importation 
     request.
       ``(4) Unlawful drug importation request.--The term 
     `unlawful drug importation request' means the request, or 
     transmittal of a request, made to an unregistered foreign 
     pharmacy for a prescription drug by mail (including a private 
     carrier), facsimile, phone, or electronic mail, or by a means 
     that involves the use, in whole or in part, of the Internet.
       ``(5) Unregistered foreign pharmacy.--The term 
     `unregistered foreign pharmacy' means a person in a country 
     other than the United States that is not a registered 
     exporter under section 804.
       ``(6) Other definitions.--
       ``(A) Credit; creditor; credit card.--The terms `credit', 
     `creditor', and `credit card' have the meanings given the 
     terms in section 103 of the Truth in Lending Act (15 U.S.C. 
     1602).
       ``(B) Access device; electronic fund transfer.--The terms 
     `access device' and `electronic fund transfer'--
       ``(i) have the meaning given the term in section 903 of the 
     Electronic Fund Transfer Act (15 U.S.C. 1693a); and

[[Page S8144]]

       ``(ii) the term `electronic fund transfer' also includes 
     any fund transfer covered under Article 4A of the Uniform 
     Commercial Code, as in effect in any State.
       ``(C) Financial institution.--The term `financial 
     institution'--
       ``(i) has the meaning given the term in section 903 of the 
     Electronic Transfer Fund Act (15 U.S.C. 1693a); and
       ``(ii) includes a financial institution (as defined in 
     section 509 of the Gramm-Leach-Bliley Act (15 U.S.C. 6809)).
       ``(D) Money transmitting business; money transmitting 
     service.--The terms `money transmitting business' and `money 
     transmitting service' have the meaning given the terms in 
     section 5330(d) of title 31, United States Code.
       ``(E) Board.--The term `Board' means the Board of Governors 
     of the Federal Reserve System.
       ``(7) Policies and procedures required to prevent 
     restricted transactions.--
       ``(A) Regulations.--The Board shall promulgate regulations 
     requiring--
       ``(i) an operator of a credit card system;
       ``(ii) an operator of an international, national, regional, 
     or local network used to effect a credit transaction, an 
     electronic fund transfer, or a money transmitting service;
       ``(iii) an operator of any other payment system that is 
     centrally managed and is primarily engaged in the 
     transmission and settlement of credit transactions, 
     electronic transfers or money transmitting services where at 
     least one party to the transaction or transfer is an 
     individual; and
       ``(iv) any other person described in paragraph (2)(B) and 
     specified by the Board in such regulations,
     to establish policies and procedures that are reasonably 
     designed to prevent the introduction of a restricted 
     transaction into a payment system or the completion of a 
     restricted transaction using a payment system
       ``(B) Requirements for policies and procedures.--In 
     promulgating regulations under subparagraph (A), the Board 
     shall--
       ``(i) identify types of policies and procedures, including 
     nonexclusive examples, that shall be considered to be 
     reasonably designed to prevent the introduction of restricted 
     transactions into a payment system or the completion of 
     restricted transactions using a payment system; and
       ``(ii) to the extent practicable, permit any payment 
     system, or person described in paragraph (2)(B), as 
     applicable, to choose among alternative means of preventing 
     the introduction or completion of restricted transactions.
       ``(C) No liability for blocking or refusing to honor 
     restricted transaction.--
       ``(i) In general.--A payment system, or a person described 
     in paragraph (2)(B) that is subject to a regulation issued 
     under this subsection, and any participant in such payment 
     system that prevents or otherwise refuses to honor 
     transactions in an effort to implement the policies and 
     procedures required under this subsection or to otherwise 
     comply with this subsection shall not be liable to any party 
     for such action.
       ``(ii) Compliance.--A person described in paragraph (2)(B) 
     meets the requirements of this subsection if the person 
     relies on and complies with the policies and procedures of a 
     payment system of which the person is a member or in which 
     the person is a participant, and such policies and procedures 
     of the payment system comply with the requirements of the 
     regulations promulgated under subparagraph (A).
       ``(D) Enforcement.--
       ``(i) In general.--This subsection, and the regulations 
     promulgated under this subsection, shall be enforced 
     exclusively by the Federal functional regulators and the 
     Federal Trade Commission under applicable law in the manner 
     provided in section 505(a) of the Gramm-Leach-Bliley Act (15 
     U.S.C. 6805(a)).
       ``(ii) Factors to be considered.--In considering any 
     enforcement action under this subsection against a payment 
     system or person described in paragraph (2)(B), the Federal 
     functional regulators and the Federal Trade Commission shall 
     consider the following factors:

       ``(I) The extent to which the payment system or person 
     knowingly permits restricted transactions.
       ``(II) The history of the payment system or person in 
     connection with permitting restricted transactions.
       ``(III) The extent to which the payment system or person 
     has established and is maintaining policies and procedures in 
     compliance with regulations prescribed under this subsection.

       ``(8) Transactions permitted.--A payment system, or a 
     person described in paragraph (2)(B) that is subject to a 
     regulation issued under this subsection, is authorized to 
     engage in transactions with foreign pharmacies in connection 
     with investigating violations or potential violations of any 
     rule or requirement adopted by the payment system or person 
     in connection with complying with paragraph (7). A payment 
     system, or such a person, and its agents and employees shall 
     not be found to be in violation of, or liable under, any 
     Federal, State or other law by virtue of engaging in any such 
     transaction.
       ``(9) Relation to state laws.--No requirement, prohibition, 
     or liability may be imposed on a payment system, or a person 
     described in paragraph (2)(B) that is subject to a regulation 
     issued under this subsection, under the laws of any state 
     with respect to any payment transaction by an individual 
     because the payment transaction involves a payment to a 
     foreign pharmacy.
       ``(10) Timing of requirements.--A payment system, or a 
     person described in paragraph (2)(B) that is subject to a 
     regulation issued under this subsection, must adopt policies 
     and procedures reasonably designed to comply with any 
     regulations required under paragraph (7) within 60 days after 
     such regulations are issued in final form.
       ``(11) Compliance.--A payment system, and any person 
     described in paragraph (2)(B), shall not be deemed to be in 
     violation of paragraph (1)--
       ``(A)(i) if an alleged violation of paragraph (1) occurs 
     prior to the mandatory compliance date of the regulations 
     issued under paragraph (7); and
       ``(ii) such entity has adopted or relied on policies and 
     procedures that are reasonably designed to prevent the 
     introduction of restricted transactions into a payment system 
     or the completion of restricted transactions using a payment 
     system; or
       ``(B)(i) if an alleged violation of paragraph (1) occurs 
     after the mandatory compliance date of such regulations; and
       ``(ii) such entity is in compliance with such 
     regulations.''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on the day that is 90 days after the date 
     of enactment of this Act.
       (c) Implementation.--The Board of Governors of the Federal 
     Reserve System shall promulgate regulations as required by 
     subsection (h)(7) of section 303 of the Federal Food, Drug, 
     and Cosmetic Act (21 U.S.C. 333), as added by subsection (a), 
     not later than 90 days after the date of enactment of this 
     Act.

     SEC. 509. IMPORTATION EXEMPTION UNDER CONTROLLED SUBSTANCES 
                   IMPORT AND EXPORT ACT.

       Section 1006(a)(2) of the Controlled Substances Import and 
     Export Act (21 U.S.C. 956(a)(2)) is amended by striking ``not 
     import the controlled substance into the United States in an 
     amount that exceeds 50 dosage units of the controlled 
     substance.'' and inserting ``import into the United States 
     not more than 10 dosage units combined of all such controlled 
     substances.''.

     SEC. 510. SEVERABILITY.

       If any provision of this title, an amendment by this title, 
     or the application of such provision or amendment to any 
     person or circumstance is held to be unconstitutional, the 
     remainder of this title, the amendments made by this title, 
     and the application of the provisions of such to any person 
     or circumstance shall not affected thereby.
                                 ______
                                 
  SA 4717. Mr. REID (for Mr. Wyden) proposed an amendment to the bill 
S. 3650, to amend chapter 21 of title 5, United States Code, to provide 
that fathers of certain permanently disabled or deceased veterans shall 
be included with mothers of such veterans as preference eligibles for 
treatment in the civil service; as follows:

       Strike section 1 and redesignate sections 2 and 3 as 
     sections 1 and 2, respectively.
                                 ______
                                 
  SA 4718. Mr. REID (for Mr. Hatch) proposed an amendment to the bill 
H.R. 6198, to amend title 11 of the United States Code to make 
technical corrections; and for related purposes; as follows:

       On page 3, strike lines 1 through 5 and insert the 
     following: ``and
       ``(F) in paragraph (51D), by inserting `of the filing' 
     after `date' the 1st place it appears,''
                                 ______
                                 
  SA 4719. Mr. REID (for Mr. Baucus) proposed an amendment to the bill 
H.R. 4783, may be cited as ``The claims Resettlement Act of 2010'', as 
follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Claims 
     Resolution Act of 2010''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

     TITLE I--INDIVIDUAL INDIAN MONEY ACCOUNT LITIGATION SETTLEMENT

Sec. 101. Individual Indian Money Account Litigation Settlement.

     TITLE II--FINAL SETTLEMENT OF CLAIMS FROM IN RE BLACK FARMERS 
                       DISCRIMINATION LITIGATION

Sec. 201. Appropriation of funds for final settlement of claims from In 
              re Black Farmers Discrimination Litigation.

   TITLE III--WHITE MOUNTAIN APACHE TRIBE WATER RIGHTS QUANTIFICATION

Sec. 301. Short title.
Sec. 302. Purposes.
Sec. 303. Definitions.
Sec. 304. Approval of Agreement.
Sec. 305. Water rights.
Sec. 306. Contract.
Sec. 307. Authorization of WMAT rural water system.
Sec. 308. Satisfaction of claims.
Sec. 309. Waivers and releases of claims.
Sec. 310. White Mountain Apache Tribe Water Rights Settlement 
              Subaccount.
Sec. 311. Miscellaneous provisions.
Sec. 312. Funding.
Sec. 313. Antideficiency.
Sec. 314. Compliance with environmental laws.

[[Page S8145]]

              TITLE IV--CROW TRIBE WATER RIGHTS SETTLEMENT

Sec. 401. Short title.
Sec. 402. Purposes.
Sec. 403. Definitions.
Sec. 404. Ratification of Compact.
Sec. 405. Rehabilitation and improvement of Crow Irrigation Project.
Sec. 406. Design and construction of MR&I System.
Sec. 407. Tribal water rights.
Sec. 408. Storage allocation from Bighorn Lake.
Sec. 409. Satisfaction of claims.
Sec. 410. Waivers and releases of claims.
Sec. 411. Crow Settlement Fund.
Sec. 412. Yellowtail Dam, Montana.
Sec. 413. Miscellaneous provisions.
Sec. 414. Funding.
Sec. 415. Repeal on failure to meet enforceability date.
Sec. 416. Antideficiency.

                TITLE V--TAOS PUEBLO INDIAN WATER RIGHTS

Sec. 501. Short title.
Sec. 502. Purposes.
Sec. 503. Definitions.
Sec. 504. Pueblo rights.
Sec. 505. Taos Pueblo Water Development Fund.
Sec. 506. Marketing.
Sec. 507. Mutual-Benefit Projects.
Sec. 508. San Juan-Chama Project contracts.
Sec. 509. Authorizations, ratifications, confirmations, and conditions 
              precedent.
Sec. 510. Waivers and releases of claims.
Sec. 511. Interpretation and enforcement.
Sec. 512. Disclaimer.
Sec. 513. Antideficiency.

                 TITLE VI--AAMODT LITIGATION SETTLEMENT

Sec. 601. Short title.
Sec. 602. Definitions.

            Subtitle A--Pojoaque Basin Regional Water System

Sec. 611. Authorization of Regional Water System.
Sec. 612. Operating Agreement.
Sec. 613. Acquisition of Pueblo water supply for Regional Water System.
Sec. 614. Delivery and allocation of Regional Water System capacity and 
              water.
Sec. 615. Aamodt Settlement Pueblos' Fund.
Sec. 616. Environmental compliance.
Sec. 617. Funding.

       Subtitle B--Pojoaque Basin Indian Water Rights Settlement

Sec. 621. Settlement Agreement and contract approval.
Sec. 622. Environmental compliance.
Sec. 623. Conditions precedent and enforcement date.
Sec. 624. Waivers and releases of claims.
Sec. 625. Effect.
Sec. 626. Antideficiency.

             TITLE VII--RECLAMATION WATER SETTLEMENTS FUND

Sec. 701. Mandatory appropriation.

                     TITLE VIII--GENERAL PROVISIONS

        Subtitle A--Unemployment Compensation Program Integrity

Sec. 801. Collection of past-due, legally enforceable State debts.
Sec. 802. Reporting of first day of earnings to directory of new hires.

                            Subtitle B--TANF

Sec. 811. Extension of the Temporary Assistance for Needy Families 
              program.
Sec. 812. Modifications to TANF data reporting.

  Subtitle C--Customs User Fees; Continued Dumping and Subsidy Offset

Sec. 821. Customs user fees.
Sec. 822. Limitation on distributions relating to repeal of continued 
              dumping and subsidy offset.

        Subtitle D--Emergency Fund for Indian Safety and Health

Sec. 831. Emergency Fund for Indian Safety and Health.

            Subtitle E--Rescission of Funds From WIC Program

Sec. 841. Rescission of funds from WIC program.

                     Subtitle F--Budgetary Effects

Sec. 851. Budgetary effects.

     TITLE I--INDIVIDUAL INDIAN MONEY ACCOUNT LITIGATION SETTLEMENT

     SEC. 101. INDIVIDUAL INDIAN MONEY ACCOUNT LITIGATION 
                   SETTLEMENT.

       (a) Definitions.--In this section:
       (1) Agreement on attorneys' fees, expenses, and costs.--The 
     term ``Agreement on Attorneys' Fees, Expenses, and Costs'' 
     means the agreement dated December 7, 2009, between Class 
     Counsel (as defined in the Settlement) and the Defendants (as 
     defined in the Settlement) relating to attorneys' fees, 
     expenses, and costs incurred by Class Counsel in connection 
     with the Litigation and implementation of the Settlement, as 
     modified by the parties to the Litigation.
       (2) Amended complaint.--The term ``Amended Complaint'' 
     means the Amended Complaint attached to the Settlement.
       (3) Final approval.--The term ``final approval'' has the 
     meaning given the term in the Settlement.
       (4) Land consolidation program.--The term ``Land 
     Consolidation Program'' means a program conducted in 
     accordance with the Settlement, the Indian Land Consolidation 
     Act (25 U.S.C. 2201 et seq.), and subsection (e)(2) under 
     which the Secretary may purchase fractional interests in 
     trust or restricted land.
       (5) Litigation.--The term ``Litigation'' means the case 
     entitled Elouise Cobell et al. v. Ken Salazar et al., United 
     States District Court, District of Columbia, Civil Action No. 
     96-1285 (TFH).
       (6) Plaintiff.--The term ``Plaintiff'' means a member of 
     any class certified in the Litigation.
       (7) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (8) Settlement.--The term ``Settlement'' means the Class 
     Action Settlement Agreement dated December 7, 2009, in the 
     Litigation, as modified by the parties to the Litigation.
       (9) Trust administration adjustment fund.--The term ``Trust 
     Administration Adjustment Fund'' means the $100,000,000 
     deposited in the Settlement Account (as defined in the 
     Settlement) pursuant to subsection (j)(1) for use in making 
     the adjustments authorized by that subsection.
       (10) Trust administration class.--The term ``Trust 
     Administration Class'' means the Trust Administration Class 
     as defined in the Settlement.
       (b) Purpose.--The purpose of this section is to authorize 
     the Settlement.
       (c) Authorization.--
       (1) In general.--The Settlement is authorized, ratified, 
     and confirmed.
       (2) Amendments.--Any amendment to the Settlement is 
     authorized, ratified, and confirmed, to the extent that such 
     amendment is executed to make the Settlement consistent with 
     this section.
       (d) Jurisdictional Provisions.--
       (1) In general.--Notwithstanding the limitation on the 
     jurisdiction of the district courts of the United States in 
     section 1346(a)(2) of title 28, United States Code, the 
     United States District Court for the District of Columbia 
     shall have jurisdiction of the claims asserted in the Amended 
     Complaint for purposes of the Settlement.
       (2) Certification of trust administration class.--
       (A) In general.--Notwithstanding the requirements of the 
     Federal Rules of Civil Procedure, the court in the Litigation 
     may certify the Trust Administration Class.
       (B) Treatment.--On certification under subparagraph (A), 
     the Trust Administration Class shall be treated as a class 
     certified under rule 23(b)(3) of the Federal Rules of Civil 
     Procedure for purposes of the Settlement.
       (e) Trust Land Consolidation.--
       (1) Trust land consolidation fund.--
       (A) Establishment.--On final approval of the Settlement, 
     there shall be established in the Treasury of the United 
     States a fund, to be known as the ``Trust Land Consolidation 
     Fund''.
       (B) Availability of amounts.--Amounts in the Trust Land 
     Consolidation Fund shall be made available to the Secretary 
     during the 10-year period beginning on the date of final 
     approval of the Settlement--
       (i) to conduct the Land Consolidation Program; and
       (ii) for other costs specified in the Settlement.
       (C) Deposits.--
       (i) In general.--On final approval of the Settlement, the 
     Secretary of the Treasury shall deposit in the Trust Land 
     Consolidation Fund $1,900,000,000 out of the amounts 
     appropriated to pay final judgments, awards, and compromise 
     settlements under section 1304 of title 31, United States 
     Code.
       (ii) Conditions met.--The conditions described in section 
     1304 of title 31, United States Code, shall be deemed to be 
     met for purposes of clause (i).
       (D) Transfers.--In a manner designed to encourage 
     participation in the Land Consolidation Program, the 
     Secretary may transfer, at the discretion of the Secretary, 
     not more than $60,000,000 of amounts in the Trust Land 
     Consolidation Fund to the Indian Education Scholarship 
     Holding Fund established under paragraph (3).
       (2) Operation.--The Secretary shall consult with Indian 
     tribes to identify fractional interests within the respective 
     jurisdictions of the Indian tribes for purchase in a manner 
     that is consistent with the priorities of the Secretary.
       (3) Indian education scholarship holding fund.--
       (A) Establishment.--On final approval of the Settlement, 
     there shall be established in the Treasury of the United 
     States a fund, to be known as the ``Indian Education 
     Scholarship Holding Fund''.
       (B) Availability.--Notwithstanding any other provision of 
     law governing competition, public notification, or Federal 
     procurement or assistance, amounts in the Indian Education 
     Scholarship Holding Fund shall be made available, without 
     further appropriation, to the Secretary to contribute to an 
     Indian Education Scholarship Fund, as described in the 
     Settlement, to provide scholarships for Native Americans.
       (4) Acquisition of trust or restricted land.--The Secretary 
     may acquire, at the discretion of the Secretary and in 
     accordance with the Land Consolidation Program, any 
     fractional interest in trust or restricted land.
       (5) Treatment of unlocatable plaintiffs.--A Plaintiff, the 
     whereabouts of whom are unknown and who, after reasonable 
     efforts by the Secretary, cannot be located during the 5-year 
     period beginning on the date of final approval of the 
     Settlement, shall be considered to have accepted an offer 
     made pursuant to the Land Consolidation Program.

[[Page S8146]]

       (f) Taxation and Other Benefits.--
       (1) Internal revenue code.--For purposes of the Internal 
     Revenue Code of 1986, amounts received by an individual 
     Indian as a lump sum or a periodic payment pursuant to the 
     Settlement shall not be--
       (A) included in gross income; or
       (B) taken into consideration for purposes of applying any 
     provision of the Internal Revenue Code that takes into 
     account excludable income in computing adjusted gross income 
     or modified adjusted gross income, including section 86 of 
     that Code (relating to Social Security and tier 1 railroad 
     retirement benefits).
       (2) Other benefits.--Notwithstanding any other provision of 
     law, for purposes of determining initial eligibility, ongoing 
     eligibility, or level of benefits under any Federal or 
     federally assisted program, amounts received by an individual 
     Indian as a lump sum or a periodic payment pursuant to the 
     Settlement shall not be treated for any household member, 
     during the 1-year period beginning on the date of receipt--
       (A) as income for the month during which the amounts were 
     received; or
       (B) as a resource.
       (g) Incentive Awards and Award of Attorneys' Fees, 
     Expenses, and Costs Under Settlement Agreement.--
       (1) In general.--Subject to paragraph (3), the court in the 
     Litigation shall determine the amount to which the Plaintiffs 
     in the Litigation may be entitled for incentive awards and 
     for attorneys' fees, expenses, and costs--
       (A) in accordance with controlling law, including, with 
     respect to attorneys' fees, expenses, and costs, any 
     applicable rule of law requiring counsel to produce 
     contemporaneous time, expense, and cost records in support of 
     a motion for such fees, expenses, and costs; and
       (B) giving due consideration to the special status of Class 
     Members (as defined in the Settlement) as beneficiaries of a 
     federally created and administered trust.
       (2) Notice of agreement on attorneys' fees, expenses, and 
     costs.--The description of the request of Class Counsel for 
     an amount of attorneys' fees, expenses, and costs required 
     under paragraph C.1.d. of the Settlement shall include a 
     description of all material provisions of the Agreement on 
     Attorneys' Fees, Expenses, and Costs.
       (3) Effect on agreement.--Nothing in this subsection limits 
     or otherwise affects the enforceability of the Agreement on 
     Attorneys' Fees, Expenses, and Costs.
       (h) Selection of Qualifying Bank.--The United States 
     District Court for the District of Columbia, in exercising 
     the discretion of the Court to approve the selection of any 
     proposed Qualifying Bank (as defined in the Settlement) under 
     paragraph A.1. of the Settlement, may consider any factors or 
     circumstances regarding the proposed Qualifying Bank that the 
     Court determines to be appropriate to protect the rights and 
     interests of Class Members (as defined in the Settlement) in 
     the amounts to be deposited in the Settlement Account (as 
     defined in the Settlement).
       (i) Appointees to Special Board of Trustees.--The 2 members 
     of the special board of trustees to be selected by the 
     Secretary under paragraph G.3. of the Settlement shall be 
     selected only after consultation with, and after considering 
     the names of possible candidates timely offered by, federally 
     recognized Indian tribes.
       (j) Trust Administration Class Adjustments.--
       (1) Funds.--
       (A) In general.--In addition to the amounts deposited 
     pursuant to paragraph E.2. of the Settlement, on final 
     approval, the Secretary of the Treasury shall deposit in the 
     Trust Administration Adjustment Fund of the Settlement 
     Account (as defined in the Settlement) $100,000,000 out of 
     the amounts appropriated to pay final judgments, awards, and 
     compromise settlements under section 1304 of title 31, United 
     States Code, to be allocated and paid by the Claims 
     Administrator (as defined in the Settlement and pursuant to 
     paragraph E.1.e of the Settlement) in accordance with this 
     subsection.
       (B) Conditions met.--The conditions described in section 
     1304 of title 31, United States Code, shall be deemed to be 
     met for purposes of subparagraph (A).
       (2) Adjustment.--
       (A) In general.--After the calculation of the pro rata 
     share in Section E.4.b of the Settlement, the Trust 
     Administration Adjustment Fund shall be used to increase the 
     minimum payment to each Trust Administration Class Member 
     whose pro rata share is--
       (i) zero; or
       (ii) greater than zero, but who would, after adjustment 
     under this subparagraph, otherwise receive a smaller Stage 2 
     payment than those Trust Administration Class Members 
     described in clause (i).
       (B) Result.--The amounts in the Trust Administration 
     Adjustment Fund shall be applied in such a manner as to 
     ensure, to the extent practicable (as determined by the court 
     in the Litigation), that each Trust Administration Class 
     Member receiving amounts from the Trust Administration 
     Adjustment Fund receives the same total payment under Stage 2 
     of the Settlement after making the adjustments required by 
     this subsection.
       (3) Timing of payments.--The payments authorized by this 
     subsection shall be included with the Stage 2 payments under 
     paragraph E.4. of the Settlement.
       (k) Effect of Adjustment Provisions.--Notwithstanding any 
     provision of this section, in the event that a court 
     determines that the application of subsection (j) is unfair 
     to the Trust Administration Class--
       (1) subsection (j) shall not go into effect; and
       (2) on final approval of the Settlement, in addition to the 
     amounts deposited into the Trust Land Consolidation Fund 
     pursuant to subsection (e), the Secretary of the Treasury 
     shall deposit in that Fund $100,000,000 out of amounts 
     appropriated to pay final judgments, awards, and compromise 
     settlements under section 1304 of title 31, United States 
     Code (the conditions of which section shall be deemed to be 
     met for purposes of this paragraph) to be used by the 
     Secretary in accordance with subsection (e).

     TITLE II--FINAL SETTLEMENT OF CLAIMS FROM IN RE BLACK FARMERS 
                       DISCRIMINATION LITIGATION

     SEC. 201. APPROPRIATION OF FUNDS FOR FINAL SETTLEMENT OF 
                   CLAIMS FROM IN RE BLACK FARMERS DISCRIMINATION 
                   LITIGATION.

       (a) Definitions.--In this section:
       (1) Settlement agreement.--The term ``Settlement 
     Agreement'' means the settlement agreement dated February 18, 
     2010 (including any modifications agreed to by the parties 
     and approved by the court under that agreement) between 
     certain plaintiffs, by and through their counsel, and the 
     Secretary of Agriculture to resolve, fully and forever, the 
     claims raised or that could have been raised in the cases 
     consolidated in In re Black Farmers Discrimination 
     Litigation, Misc. No. 08-mc-0511 (PLF), including Pigford 
     claims asserted under section 14012 of the Food, 
     Conservation, and Energy Act of 2008 (Public Law 110-246; 122 
     Stat. 2209).
       (2) Pigford claim.--The term ``Pigford claim'' has the 
     meaning given that term in section 14012(a)(3) of the Food, 
     Conservation, and Energy Act of 2008 (Public Law 110-246; 122 
     Stat. 2210).
       (b) Appropriation of Funds.--There is appropriated to the 
     Secretary of Agriculture $1,150,000,000, to remain available 
     until expended, to carry out the terms of the Settlement 
     Agreement if the Settlement Agreement is approved by a court 
     order that is or becomes final and nonappealable, and the 
     court finds that the Settlement Agreement is modified to 
     incorporate the additional terms contained in subsection (g). 
     The funds appropriated by this subsection are in addition to 
     the $100,000,000 of funds of the Commodity Credit Corporation 
     made available by section 14012(i) of the Food, Conservation, 
     and Energy Act of 2008 (Public Law 110-246; 122 Stat. 2212) 
     and shall be available for obligation only after those 
     Commodity Credit Corporation funds are fully obligated. If 
     the Settlement Agreement is not approved as provided in this 
     subsection, the $100,000,000 of funds of the Commodity Credit 
     Corporation made available by section 14012(i) of the Food, 
     Conservation, and Energy Act of 2008 shall be the sole 
     funding available for Pigford claims.
       (c) Use of Funds.--The use of the funds appropriated by 
     subsection (b) shall be subject to the express terms of the 
     Settlement Agreement.
       (d) Treatment of Remaining Funds.--If any of the funds 
     appropriated by subsection (b) are not obligated and expended 
     to carry out the Settlement Agreement, the Secretary of 
     Agriculture shall return the unused funds to the Treasury and 
     may not make the unused funds available for any purpose 
     related to section 14012 of the Food, Conservation, and 
     Energy Act of 2008, for any other settlement agreement 
     executed in In re Black Farmers Discrimination Litigation, 
     No. 08-511 (D.D.C.), or for any other purpose.
       (e) Rules of Construction.--Nothing in this section shall 
     be construed as requiring the United States, any of its 
     officers or agencies, or any other party to enter into the 
     Settlement Agreement or any other settlement agreement. 
     Nothing in this section shall be construed as creating the 
     basis for a Pigford claim.
       (f) Conforming Amendments.--Section 14012 of the Food, 
     Conservation, and Energy Act of 2008 (Public Law 110-246; 122 
     Stat. 2209) is amended--
       (1) in subsection (c)(1)--
       (A) by striking ``subsection (h)'' and inserting 
     ``subsection (g)''; and
       (B) by striking ``subsection (i)'' and inserting 
     ``subsection (h)'';
       (2) by striking subsection (e);
       (3) in subsection (g), by striking ``subsection (f)'' and 
     inserting ``subsection (e)'';
       (4) in subsection (i)--
       (A) by striking ``(1) In general.--Of the funds'' and 
     inserting ``Of the funds'';
       (B) by striking paragraph (2); and
       (C) by striking ``subsection (g)'' and inserting 
     ``subsection (f)'';
       (5) by striking subsection (j); and
       (6) by redesignating subsections (f), (g), (h), (i), and 
     (k) as subsections (e), (f), (g), (h), and (i), respectively.
       (g) Additional Settlement Terms.--For the purposes of this 
     section and funding for the Settlement Agreement, the 
     following are additional terms:
       (1) Definitions.--In this subsection:
       (A) Settlement agreement.--The term ``Settlement 
     Agreement'' means the settlement, including any modifications 
     agreed to by the parties and approved by the court, between 
     the Secretary of Agriculture and certain plaintiffs, by and 
     through their counsel in litigation titled Black Farmers 
     Discrimination Litigation, Misc. No. 08-mc-0511 (PLF).

[[Page S8147]]

       (B) Neutral adjudicator.--
       (i) In general.--The term ``Neutral Adjudicator'' means a 
     Track A Neutral or a Track B Neutral as those terms are 
     defined in the Settlement Agreement, who have been hired by 
     Lead Class Counsel as that term is defined in the Settlement 
     Agreement.
       (ii) Requirement.--The Track A and B Neutrals called for in 
     the Settlement Agreement shall be approved by the Secretary 
     of the United States Department of Agriculture, the Attorney 
     General, and the court.
       (2) Oath.--Every Neutral Adjudicator shall take an oath 
     administered by the court prior to hearing claims.
       (3) Additional documentation or evidence.--Any Neutral 
     Adjudicator may, during the course of hearing claims, require 
     claimants to provide additional documentation and evidence 
     if, in the Neutral Adjudicator's judgment, the additional 
     documentation and evidence would be necessary or helpful in 
     deciding the merits of the claim, or if the adjudicator 
     suspects fraud regarding the claim.
       (4) Attorneys fees, expenses, and costs.--
       (A) In general.--Subject to subparagraph (B) and the 
     provisions of the Settlement Agreement regarding attorneys' 
     fee caps and maximum and minimum percentages for awards of 
     attorneys fees, the court shall make any determination as to 
     the amount of attorneys' fees, expenses, and costs in 
     accordance with controlling law, including, with respect to 
     attorneys' fees, expenses, and costs, any applicable rule of 
     law requiring counsel to produce contemporaneous time, 
     expenses, and cost records in support of a motion for such 
     fees, expenses, and costs.
       (B) Effect on agreement.--Nothing in this paragraph limits 
     or otherwise affects the enforceability of provisions 
     regarding attorneys' fees, expenses, and costs that may be 
     contained in the Settlement Agreement.
       (5) Certification.--An attorney filing a claim on behalf of 
     a claimant shall swear, under penalty of perjury, that: ``to 
     the best of the attorney's knowledge, information, and belief 
     formed after an inquiry reasonable under the circumstances, 
     the claim is supported by existing law and the factual 
     contentions have evidentiary support''.
       (6) Distribution of claims determinations and settlement 
     funds.--In order to ensure full transparency of the 
     administration of claims under the Settlement Agreement, the 
     Claims Administrator as that term is defined in the 
     Settlement Agreement, shall provide to the Secretary of 
     Agriculture, the Inspector General of the Department of 
     Agriculture, the Attorney General, and Lead Class Counsel as 
     that term is defined in the Settlement Agreement, all 
     information regarding Distribution of Claims Determinations 
     and Settlement Funds described in the Settlement Agreement.
       (h) Reports.--
       (1) Government accountability office.--
       (A) In general.--The Comptroller General of the United 
     States shall evaluate the internal controls (including 
     internal controls concerning fraud and abuse) created to 
     carry out the terms of the Settlement Agreement, and report 
     to the Congress at least 2 times throughout the duration of 
     the claims adjudication process on the results of this 
     evaluation.
       (B) Access to information.--Solely for purposes of 
     conducting the evaluation under subparagraph (A), the 
     Comptroller General shall have access, upon request, to the 
     claims administrator, the claims adjudicators, and related 
     officials, appointed in connection with the aforementioned 
     settlement, and to any information and records generated, 
     used, or received by them, including names and addresses.
       (2) USDA inspector general.--
       (A) Performance audit.--The Inspector General of the 
     Department of Agriculture shall, within 180 days of the 
     initial adjudication of claims, and subsequently as 
     appropriate, perform a performance audit based on a 
     statistical sampling of adjudicated claims.
       (B) Audit recipients.--The audits described in clause (i) 
     shall be provided to Secretary of Agriculture and the 
     Attorney General.

   TITLE III--WHITE MOUNTAIN APACHE TRIBE WATER RIGHTS QUANTIFICATION

     SEC. 301. SHORT TITLE.

       This title may be cited as the ``White Mountain Apache 
     Tribe Water Rights Quantification Act of 2010''.

     SEC. 302. PURPOSES.

       The purposes of this title are--
       (1) to authorize, ratify, and confirm the Agreement;
       (2) to authorize and direct the Secretary to execute the 
     Agreement and take any other action necessary to carry out 
     all obligations of the Secretary under the Agreement in 
     accordance with this title;
       (3) to authorize the amounts necessary for the United 
     States to meet the obligations of the United States under the 
     Agreement and this title; and
       (4) to permanently resolve certain damage claims and all 
     water rights claims among--
       (A) the Tribe and its members;
       (B) the United States, acting as trustee for the Tribe and 
     its members;
       (C) the parties to the Agreement; and
       (D) all other claimants seeking to determine the nature and 
     extent of the water rights of the Tribe, its members, the 
     United States, acting as trustee for the Tribe and its 
     members, and other claimants in--
       (i) the consolidated civil action in the Superior Court of 
     the State of Arizona for the County of Maricopa styled In re 
     the General Adjudication of All Rights To Use Water In The 
     Gila River System and Source, W-1 (Salt), W-2 (Verde), W-3 
     (Upper Gila), W-4 (San Pedro); and
       (ii) the civil action pending in the Superior Court of the 
     State of Arizona for the County of Apache styled In re the 
     General Adjudication of All Rights to Use Water in the Little 
     Colorado River System and Source and numbered CIV-6417.

     SEC. 303. DEFINITIONS.

       In this title:
       (1) Agreement.--The term ``Agreement'' means--
       (A) the WMAT Water Rights Quantification Agreement dated 
     January 13, 2009; and
       (B) any amendment or exhibit (including exhibit amendments) 
     to that Agreement that are--
       (i) made in accordance with this title; or
       (ii) otherwise approved by the Secretary.
       (2) Bureau.--The term ``Bureau'' means the Bureau of 
     Reclamation.
       (3) CAP.--The term ``CAP'' means the reclamation project 
     authorized and constructed by the United States in accordance 
     with title III of the Colorado River Basin Project Act (43 
     U.S.C. 1521 et seq.).
       (4) CAP contractor.--The term ``CAP contractor'' means an 
     individual or entity that has entered into a long-term 
     contract (as that term is used in the repayment stipulation) 
     with the United States for delivery of water through the CAP 
     system.
       (5) CAP fixed om&r charge.--The term ``CAP fixed OM&R 
     charge'' has the meaning given the term in the repayment 
     stipulation.
       (6) CAP m&i priority water.--The term ``CAP M&I priority 
     water'' means the CAP water having a municipal and industrial 
     delivery priority under the repayment contract.
       (7) CAP subcontractor.--The term ``CAP subcontractor'' 
     means an individual or entity that has entered into a long-
     term subcontract (as that term is used in the repayment 
     stipulation) with the United States and the District for the 
     delivery of water through the CAP system.
       (8) CAP system.--The term ``CAP system'' means--
       (A) the Mark Wilmer Pumping Plant;
       (B) the Hayden-Rhodes Aqueduct;
       (C) the Fannin-McFarland Aqueduct;
       (D) the Tucson Aqueduct;
       (E) any pumping plant or appurtenant works of a feature 
     described in any of subparagraphs (A) through (D); and
       (F) any extension of, addition to, or replacement for a 
     feature described in any of subparagraphs (A) through (E).
       (9) CAP water.--The term ``CAP water'' means ``Project 
     Water'' (as that term is defined in the repayment 
     stipulation).
       (10) Contract.--The term ``Contract'' means--
       (A) the proposed contract between the Tribe and the United 
     States attached as exhibit 7.1 to the Agreement and numbered 
     08-XX-30-W0529; and
       (B) any amendments to that contract.
       (11) District.--The term ``District'' means the Central 
     Arizona Water Conservation District, a political subdivision 
     of the State that is the contractor under the repayment 
     contract.
       (12) Enforceability date.--The term ``enforceability date'' 
     means the date described in section 309(d)(1).
       (13) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       (14) Injury to water rights.--
       (A) In general.--The term ``injury to water rights'' means 
     an interference with, diminution of, or deprivation of, a 
     water right under Federal, State, or other law.
       (B) Inclusions.--The term ``injury to water rights'' 
     includes--
       (i) a change in the groundwater table; and
       (ii) any effect of such a change.
       (C) Exclusion.--The term ``injury to water rights'' does 
     not include any injury to water quality.
       (15) Lower colorado river basin development fund.--The term 
     ``Lower Colorado River Basin Development Fund'' means the 
     fund established by section 403 of the Colorado River Basin 
     Project Act (43 U.S.C. 1543).
       (16) Off-reservation trust land.--The term ``off-
     reservation trust land'' means land--
       (A) located outside the exterior boundaries of the 
     reservation that is held in trust by the United States for 
     the benefit of the Tribe as of the enforceability date; and
       (B) depicted on the map attached to the Agreement as 
     exhibit 2.57.
       (17) Operating agency.--The term ``Operating Agency'' means 
     the 1 or more entities authorized to assume responsibility 
     for the care, operation, maintenance, and replacement of the 
     CAP system.
       (18) Repayment contract.--The term ``repayment contract'' 
     means--
       (A) the contract between the United States and the District 
     for delivery of water and repayment of the costs of the CAP, 
     numbered 14-06-W-245 (Amendment No. 1), and dated December 1, 
     1988; and
       (B) any amendment to, or revision of, that contract.
       (19) Repayment stipulation.--The term ``repayment 
     stipulation'' means the stipulated judgment and the 
     stipulation for judgment (including any exhibits to those 
     documents) entered on November 21, 2007, in the United States 
     District Court for the District

[[Page S8148]]

     of Arizona in the consolidated civil action styled Central 
     Arizona Water Conservation District v. United States, et al., 
     and numbered CIV 95-625-TUC-WDB (EHC) and CIV 95-1720-PHX-
     EHC.
       (20) Reservation.--
       (A) In general.--The term ``reservation'' means the land 
     within the exterior boundary of the White Mountain Indian 
     Reservation established by the Executive order dated November 
     9, 1871, as modified by subsequent Executive orders and Acts 
     of Congress--
       (i) known on the date of enactment of this Act as the 
     ``Fort Apache Reservation'' pursuant to chapter 3 of the Act 
     of June 7, 1897 (30 Stat. 62); and
       (ii) generally depicted on the map attached to the 
     Agreement as exhibit 2.81.
       (B) No effect on dispute or as admission.--The depiction of 
     the reservation described in subparagraph (A)(ii) shall not--
       (i) be used to affect any dispute between the Tribe and the 
     United States concerning the legal boundary of the 
     reservation; or
       (ii) constitute an admission by the Tribe with regard to 
     any dispute between the Tribe and the United States 
     concerning the legal boundary of the reservation.
       (21) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (22) State.--The term ``State'' means the State of Arizona.
       (23) Tribal cap water.--The term ``tribal CAP water'' means 
     the CAP water to which the Tribe is entitled pursuant to the 
     Contract.
       (24) Tribal water rights.--The term ``tribal water rights'' 
     means the water rights of the Tribe described in paragraph 
     4.0 of the Agreement.
       (25) Tribe.--The term ``Tribe'' means the White Mountain 
     Apache Tribe organized under section 16 of the Act of June 
     18, 1934 (commonly known as the ``Indian Reorganization 
     Act'') (25 U.S.C. 476).
       (26) Water right.--The term ``water right'' means any right 
     in or to groundwater, surface water, or effluent under 
     Federal, State, or other law.
       (27) WMAT rural water system.--The term ``WMAT rural water 
     system'' means the municipal, rural, and industrial water 
     diversion, storage, and delivery system described in section 
     307.
       (28) Year.--The term ``year'' means a calendar year.

     SEC. 304. APPROVAL OF AGREEMENT.

       (a) Approval.--
       (1) In general.--Except to the extent that any provision of 
     the Agreement conflicts with a provision of this title, the 
     Agreement is authorized, ratified, and confirmed.
       (2) Amendments.--Any amendment to the Agreement is 
     authorized, ratified, and confirmed, to the extent that such 
     amendment is executed to make the Agreement consistent with 
     this title.
       (b) Execution of Agreement.--
       (1) In general.--To the extent that the Agreement does not 
     conflict with this title, the Secretary shall promptly--
       (A) execute the Agreement, including all exhibits to the 
     Agreement requiring the signature of the Secretary; and
       (B) in accordance with the Agreement, execute any amendment 
     to the Agreement, including any amendment to any exhibit to 
     the Agreement requiring the signature of the Secretary, that 
     is not inconsistent with this title; and
       (2) Discretion of the secretary.--The Secretary may execute 
     any other amendment to the Agreement, including any amendment 
     to any exhibit to the Agreement requiring the signature of 
     the Secretary, that is not inconsistent with this title if 
     the amendment does not require congressional approval 
     pursuant to the Trade and Intercourse Act (25 U.S.C. 177) or 
     other applicable Federal law (including regulations).
       (c) National Environmental Policy Act.--
       (1) Environmental compliance.--In implementing the 
     Agreement and carrying out this title, the Secretary shall 
     promptly comply with all applicable requirements of--
       (A) the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.);
       (B) the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
     seq.);
       (C) all other applicable Federal environmental laws; and
       (D) all regulations promulgated under the laws described in 
     subparagraphs (A) through (C).
       (2) Execution of agreement.--
       (A) In general.--Execution of the Agreement by the 
     Secretary under this section shall not constitute a major 
     Federal action under the National Environmental Policy Act of 
     1969 (42 U.S.C. 4321 et seq.).
       (B) Environmental compliance.--The Secretary shall carry 
     out all necessary environmental compliance activities 
     required by Federal law in implementing the Agreement.
       (3) Lead agency.--The Bureau shall serve as the lead agency 
     with respect to ensuring environmental compliance associated 
     with the WMAT rural water system.

     SEC. 305. WATER RIGHTS.

       (a) Treatment of Tribal Water Rights.--The tribal water 
     rights--
       (1) shall be held in trust by the United States on behalf 
     of the Tribe; and
       (2) shall not be subject to forfeiture or abandonment.
       (b) Reallocation.--
       (1) In general.--In accordance with this title and the 
     Agreement, the Secretary shall reallocate to the Tribe, and 
     offer to enter into a contract with the Tribe for the 
     delivery in accordance with this section of--
       (A) an entitlement to 23,782 acre-feet per year of CAP 
     water that has a non-Indian agricultural delivery priority 
     (as defined in the Contract) in accordance with section 
     104(a)(1)(A)(iii) of the Arizona Water Settlements Act 
     (Public Law 108-451; 118 Stat. 3488), of which--
       (i) 3,750 acre-feet per year shall be firmed by the United 
     States for the benefit of the Tribe for the 100-year period 
     beginning on January 1, 2008, with priority equivalent to CAP 
     M&I priority water, in accordance with section 105(b)(1)(B) 
     of that Act (118 Stat. 3492); and
       (ii) 3,750 acre-feet per year shall be firmed by the State 
     for the benefit of the Tribe for the 100-year period 
     beginning on January 1, 2008, with priority equivalent to CAP 
     M&I priority water, in accordance with section 105(b)(2)(B) 
     of that Act (118 Stat. 3492); and
       (B) an entitlement to 1,218 acre-feet per year of the 
     water--
       (i) acquired by the Secretary through the permanent 
     relinquishment of the Harquahala Valley Irrigation District 
     CAP subcontract entitlement in accordance with the contract 
     numbered 3-07-30-W0290 among the District, Harquahala Valley 
     Irrigation District, and the United States; and
       (ii) converted to CAP Indian Priority water (as defined in 
     the Contract) pursuant to the Fort McDowell Indian Community 
     Water Rights Settlement Act of 1990 (Public Law 101-628; 104 
     Stat. 4480).
       (2) Authority of tribe.--Subject to approval by the 
     Secretary under section 306(a)(1), the Tribe shall have the 
     sole authority to lease, distribute, exchange, or allocate 
     the tribal CAP water described in paragraph (1).
       (c) Water Service Capital Charges.--The Tribe shall not be 
     responsible for any water service capital charge for tribal 
     CAP water.
       (d) Allocation and Repayment.--For the purpose of 
     determining the allocation and repayment of costs of any 
     stage of the CAP constructed after November 21, 2007, the 
     costs associated with the delivery of water described in 
     subsection (b), regardless of whether the water is delivered 
     for use by the Tribe or in accordance with any assignment, 
     exchange, lease, option to lease, or other agreement for the 
     temporary disposition of water entered into by the Tribe, 
     shall be--
       (1) nonreimbursable; and
       (2) excluded from the repayment obligation of the District.
       (e) Water Code.--Not later than 18 months after the 
     enforceability date, the Tribe shall enact a water code 
     that--
       (1) governs the tribal water rights; and
       (2) includes, at a minimum--
       (A) provisions requiring the measurement, calculation, and 
     recording of all diversions and depletions of water on the 
     reservation and on off-reservation trust land;
       (B) terms of a water conservation plan, including 
     objectives, conservation measures, and an implementation 
     timeline;
       (C) provisions requiring the approval of the Tribe for the 
     severance and transfer of rights to the use of water from 
     historically irrigated land identified in paragraph 11.3.2.1 
     of the Agreement to diversions and depletions on other non-
     historically irrigated land not located on the watershed of 
     the same water source; and
       (D) provisions requiring the authorization of the Tribe for 
     all diversions of water on the reservation and on off-
     reservation trust land by any individual or entity other than 
     the Tribe.

     SEC. 306. CONTRACT.

       (a)  In General.--The Secretary shall enter into the 
     Contract, in accordance with the Agreement, to provide, among 
     other things, that--
       (1) the Tribe, on approval of the Secretary, may--
       (A) enter into contracts or options to lease, contracts to 
     exchange, or options to exchange tribal CAP water in 
     Maricopa, Pinal, Pima, and Yavapai Counties in the State 
     providing for the temporary delivery to any individual or 
     entity of any portion of the tribal CAP water, subject to the 
     condition that--
       (i) the term of the contract or option to lease shall not 
     be longer than 100 years;
       (ii) the contracts or options to exchange shall be for the 
     term provided in the contract or option; and
       (iii) a lease or option to lease providing for the 
     temporary delivery of tribal CAP water shall require the 
     lessee to pay to the Operating Agency all CAP fixed OM&R 
     charges and all CAP pumping energy charges (as defined in the 
     repayment stipulation) associated with the leased water; and
       (B) renegotiate any lease at any time during the term of 
     the lease, subject to the condition that the term of the 
     renegotiated lease shall not exceed 100 years;
       (2) no portion of the tribal CAP water may be permanently 
     alienated;
       (3)(A) the Tribe (and not the United States in any 
     capacity) shall be entitled to all consideration due to the 
     Tribe under any contract or option to lease or exchange 
     tribal CAP water entered into by the Tribe; and
       (B) the United States (in any capacity) has no trust or 
     other obligation to monitor, administer, or account for, in 
     any manner--
       (i) any funds received by the Tribe as consideration under 
     a contract or option to lease or exchange tribal CAP water; 
     or
       (ii) the expenditure of those funds;
       (4)(A) all tribal CAP water shall be delivered through the 
     CAP system; and
       (B) if the delivery capacity of the CAP system is 
     significantly reduced or anticipated

[[Page S8149]]

     to be significantly reduced for an extended period of time, 
     the Tribe shall have the same CAP delivery rights as a CAP 
     contractor or CAP subcontractor that is allowed to take 
     delivery of water other than through the CAP system;
       (5) the Tribe may use tribal CAP water on or off the 
     reservation for any purpose;
       (6) as authorized by subsection (f)(2)(A) of section 403 of 
     the Colorado River Basin Project Act (43 U.S.C. 1543) and to 
     the extent that funds are available in the Lower Colorado 
     River Basin Development Fund established by subsection (a) of 
     that section, the United States shall pay to the Operating 
     Agency the CAP fixed OM&R charges associated with the 
     delivery of tribal CAP water (except in the case of tribal 
     CAP water leased by any individual or entity);
       (7) the Secretary shall waive the right of the Secretary to 
     capture all return flow from project exchange water flowing 
     from the exterior boundary of the reservation; and
       (8) no CAP water service capital charge shall be due or 
     payable for the tribal CAP water, regardless of whether the 
     water is delivered for use by the Tribe or pursuant to a 
     contract or option to lease or exchange tribal CAP water 
     entered into by the Tribe.
       (b) Requirements.--The Contract shall be--
       (1) for permanent service (within the meaning of section 5 
     of the Boulder Canyon Project Act (43 U.S.C. 617d)); and
       (2) without limit as to term.
       (c) Ratification.--
       (1) In general.--Except to the extent that any provision of 
     the Contract conflicts with a provision of this title, the 
     Contract is authorized, ratified, and confirmed.
       (2) Amendments.--Any amendment to the Contract is 
     authorized, ratified, and confirmed, to the extent that such 
     amendment is executed to make the Contract consistent with 
     this title.
       (d) Execution of Contract.--To the extent that the Contract 
     does not conflict with this title, the Secretary shall 
     execute the Contract.
       (e) Payment of Charges.--The Tribe, and any recipient of 
     tribal CAP water through a contract or option to lease or 
     exchange, shall not be obligated to pay a water service 
     capital charge or any other charge, payment, or fee for CAP 
     water, except as provided in an applicable lease or exchange 
     agreement.
       (f) Prohibitions.--
       (1) Use outside state.--No tribal CAP water may be leased, 
     exchanged, forborne, or otherwise transferred by the Tribe in 
     any way for use directly or indirectly outside the State.
       (2) Use off reservation.--Except as authorized by this 
     section and paragraph 4.7 of the Agreement, no tribal water 
     rights under this title may be sold, leased, transferred, or 
     used outside the boundaries of the reservation or off-
     reservation trust land other than pursuant to an exchange.
       (3) Agreements with arizona water banking authority.--
     Nothing in this title or the Agreement limits the right of 
     the Tribe to enter into an agreement with the Arizona Water 
     Banking Authority (or any successor entity) established by 
     section 45-2421 of the Arizona Revised Statutes in accordance 
     with State law.
       (g) Leases.--
       (1) In general.--To the extent that the leases of tribal 
     CAP Water by the Tribe to the District and to any of the 
     cities in the State, attached as exhibits to the Agreement, 
     are not in conflict with the provisions of this title--
       (A) those leases are authorized, ratified, and confirmed; 
     and
       (B) the Secretary shall execute the leases.
       (2) Amendments.--To the extent that amendments are executed 
     to make the leases described in paragraph (1) consistent with 
     this title, those amendments are authorized, ratified, and 
     confirmed.

     SEC. 307. AUTHORIZATION OF WMAT RURAL WATER SYSTEM.

       (a) In General.--Consistent with subsections (a) and (e) of 
     section 312 and subsection (h) of this section, the 
     Secretary, acting through the Bureau, shall plan, design, and 
     construct the WMAT rural water system to divert, store, and 
     distribute water from the North Fork of the White River to 
     the Tribe that shall consist of--
       (1) a dam and storage reservoir, pumping plant, and 
     treatment facilities located along the North Fork of the 
     White River near the community of Whiteriver;
       (2) a distribution system consisting of pipelines extending 
     from the treatment facilities to existing water distribution 
     systems serving the communities of Whiteriver, Fort Apache, 
     Canyon Day, Cedar Creek, Carrizo, and Cibecue;
       (3) connections to existing distribution facilities for the 
     communities described in paragraph (2), but not including any 
     upgrades of, or improvements to, existing or future public 
     water systems for the communities described in paragraph (2) 
     that may be necessary to accommodate increased demand and 
     flow rates (and any associated changes in water quality);
       (4) connections to additional communities along the 
     pipeline, provided that the additional connections may be 
     added to the distribution system described in paragraph (2) 
     at the expense of the Tribe;
       (5) appurtenant buildings and access roads;
       (6) electrical power transmission and distribution 
     facilities necessary for operation of the project; and
       (7) any other project components that the Secretary, in 
     consultation with the Tribe, determines to be necessary.
       (b) Modifications.--The Secretary and the Tribe--
       (1) may modify the components of the WMAT rural water 
     system described in subsection (a) by mutual agreement; and
       (2) shall make all modifications required under subsection 
     (c)(2).
       (c) Final Project Design.--
       (1) In general.--The Secretary shall issue a final project 
     design of the WMAT rural water system, including the dam, 
     pumping plants, pipeline, and treatment plant, that is 
     generally consistent with the project extension report dated 
     February 2007 after the completion of--
       (A) any appropriate environmental compliance activity; and
       (B) the review process described in paragraph (2).
       (2) Review.--
       (A) In general.--The Secretary shall review the proposed 
     design of the WMAT rural water system and perform value 
     engineering analyses.
       (B) Results.--Taking into consideration the review under 
     subparagraph (A), the Secretary, in consultation with the 
     Tribe, shall require appropriate changes to the design, so 
     that the final design--
       (i) meets Bureau of Reclamation design standards;
       (ii) to the maximum extent practicable, incorporates any 
     changes that would improve the cost-effectiveness of the 
     delivery of water through the WMAT rural water system; and
       (iii) may be constructed for the amounts made available 
     under section 312.
       (d) Conveyance of Title.--
       (1) In general.--Title to the WMAT rural water system shall 
     be held by the United States until title to the WMAT rural 
     water system is conveyed by the Secretary to the Tribe 
     pursuant to paragraph (2).
       (2) Conveyance to tribe.--The Secretary shall convey to the 
     Tribe title to the WMAT rural water system not later than 30 
     days after the date on which the Secretary publishes in the 
     Federal Register a statement of findings that--
       (A) the operating criteria, standing operating procedures, 
     emergency action plan, and first filling and monitoring 
     criteria of the designers have been established and are in 
     place;
       (B) the WMAT rural water system has operated under the 
     standing operating procedures of the designers, with the 
     participation of the Tribe, for a period of 3 years;
       (C) the Secretary has provided the Tribe with technical 
     assistance on the manner by which to operate and maintain the 
     WMAT rural water system;
       (D) the funds made available under section 312(b)(3)(B) 
     have been deposited in the WMAT Maintenance Fund; and
       (E) the WMAT rural water system--
       (i) is substantially complete, as determined by the 
     Secretary; and
       (ii) satisfies the requirement that--

       (I) the infrastructure constructed is capable of storing, 
     diverting, treating, transmitting, and distributing a supply 
     of water as set forth in the final project design described 
     in subsection (c); and
       (II) the Secretary has consulted with the Tribe regarding 
     the proposed finding that the WMAT rural water system is 
     substantially complete.

       (e) Alienation and Taxation.--
       (1) In general.--Conveyance of title to the Tribe pursuant 
     to subsection (d) does not waive or alter any applicable 
     Federal law (including regulations) prohibiting alienation or 
     taxation of the WMAT rural water system or the underlying 
     reservation land.
       (2) Alienation of wmat rural water system.--The WMAT rural 
     water system, including the components of the WMAT rural 
     water system, shall not be alienated, encumbered, or conveyed 
     in any manner by the Tribe, unless a reconveyance is 
     authorized by an Act of Congress enacted after the date of 
     enactment of this Act.
       (f) Operation and Maintenance.--
       (1) In general.--Consistent with subsections (d) and (e) of 
     section 312, the Secretary, acting through the Bureau and in 
     cooperation with the Tribe, shall operate, maintain, and 
     replace the WMAT rural water system until the date on which 
     title to the WMAT rural water system is transferred to the 
     Tribe pursuant to subsection (d)(2).
       (2) Limitation.--
       (A) In general.--Beginning on the date on which title to 
     the WMAT rural water system is transferred to the Tribe 
     pursuant to subsection (d)(2), the United States shall have 
     no obligation to pay for the operation, maintenance, or 
     replacement costs of the WMAT rural water system.
       (B) Limitation on liability.--Effective on the date on 
     which the Secretary publishes a statement of findings in the 
     Federal Register pursuant to subsection (d)(2), the United 
     States shall not be held liable by any court for damages 
     arising out of any act, omission, or occurrence relating to 
     the land or facilities conveyed, other than damages caused by 
     any intentional act or act of negligence committed by the 
     United States, or by employees or agents of the United 
     States, prior to the date on which the Secretary publishes a 
     statement of findings in the Federal Register pursuant to 
     subsection (d)(2).
       (g) Right to Review.--
       (1) In general.--The statement of findings published by the 
     Secretary pursuant to subsection (d)(2) shall be considered 
     to be a final agency action subject to judicial review under 
     sections 701 through 706 of title 5, United States Code.

[[Page S8150]]

       (2) Effect of title.--Nothing in this title gives the Tribe 
     or any other party the right to judicial review of the 
     determination by the Secretary under subsection (d) except 
     under subchapter II of chapter 5, and chapter 7, of title 5, 
     United States Code (commonly known as the ``Administrative 
     Procedure Act'').
       (h) Applicability of ISDEAA.--
       (1) Agreement for specific activities.--On receipt of a 
     request of the Tribe, and in accordance with the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450 et 
     seq.), the Secretary shall enter into 1 or more agreements 
     with the Tribe to carry out the activities authorized by this 
     section.
       (2) Contracts.--Any contract entered into pursuant to the 
     Indian Self-Determination and Education Assistance Act (25 
     U.S.C. 450 et seq.) for the purpose of carrying out any 
     provision of this title shall incorporate such provisions 
     regarding periodic payment of funds, timing for use of funds, 
     transparency, oversight, reporting, and accountability as the 
     Secretary determines to be necessary (at the sole discretion 
     of the Secretary) to ensure appropriate stewardship of 
     Federal funds.
       (i) Final Designs; Project Construction.--
       (1) Final designs.--All designs for the WMAT rural water 
     system shall--
       (A) conform to Bureau design standards; and
       (B) be subject to review and approval by the Secretary.
       (2) Project construction.--Each project component of the 
     WMAT rural water system shall be constructed pursuant to 
     designs and specifications approved by the Secretary, and all 
     construction work shall be subject to inspection and approval 
     by the Secretary.
       (j) Condition.--As a condition of construction of the 
     facilities authorized by this section, the Tribe shall 
     provide, at no cost to the Secretary, all land or interests 
     in land that the Secretary identifies as necessary for the 
     construction, operation, and maintenance of those facilities.

     SEC. 308. SATISFACTION OF CLAIMS.

       (a) In General.--Except as set forth in the Agreement, the 
     benefits realized by the Tribe and its members under this 
     title shall be in full satisfaction of all claims of the 
     Tribe, its members, and the United States, acting as trustee 
     for the benefit of the Tribe and its members, for water 
     rights and injury to water rights under Federal, State, or 
     other law with respect to the reservation and off-reservation 
     trust land.
       (b) Uses of Water.--All uses of water on land outside of 
     the reservation, if and when that land is subsequently and 
     finally determined to be part of the reservation through 
     resolution of any dispute between the Tribe and the United 
     States over the location of the reservation boundary, and any 
     fee land within the reservation placed into trust and made 
     part of the reservation, shall be subject to the maximum 
     annual diversion amounts and the maximum annual depletion 
     amounts specified in the Agreement.
       (c) No Recognition of Water Rights.--Notwithstanding 
     subsection (a), nothing in this title recognizes or 
     establishes any right of a member of the Tribe to water on 
     the reservation.

     SEC. 309. WAIVERS AND RELEASES OF CLAIMS.

       (a) In General.---
       (1) Claims against the state and others.--Except for the 
     specifically retained claims described in subsection (b)(1), 
     the Tribe, on behalf of itself and its members, and the 
     United States, acting in its capacity as trustee for the 
     Tribe and its members, as part of the performance of the 
     respective obligations of the United States and the Tribe 
     under the Agreement, are authorized to execute a waiver and 
     release of any claims against the State (or any agency or 
     political subdivision of the State), or any other person, 
     entity, corporation, or municipal corporation under Federal, 
     State, or other law for all--
       (A)(i) past, present, and future claims for water rights 
     for the reservation and off-reservation trust land arising 
     from time immemorial and, thereafter, forever; and
       (ii) past, present, and future claims for water rights 
     arising from time immemorial and, thereafter, forever, that 
     are based on aboriginal occupancy of land by the Tribe, its 
     members, or their predecessors;
       (B)(i) past and present claims for injury to water rights 
     for the reservation and off-reservation trust land arising 
     from time immemorial through the enforceability date;
       (ii) past, present, and future claims for injury to water 
     rights arising from time immemorial and, thereafter, forever, 
     that are based on aboriginal occupancy of land by the Tribe, 
     its members, or their predecessors; and
       (iii) claims for injury to water rights arising after the 
     enforceability date for the reservation and off-reservation 
     trust land resulting from off-reservation diversion or use of 
     water in a manner that is not in violation of the Agreement 
     or State law; and
       (C) past, present, and future claims arising out of, or 
     relating in any manner to, the negotiation, execution, or 
     adoption of the Agreement, an applicable settlement judgement 
     or decree, or this title.
       (2) Claims against tribe.--Except for the specifically 
     retained claims described in subsection (b)(3), the United 
     States, in all capacities (except as trustee for an Indian 
     tribe other than the Tribe), as part of the performance of 
     its obligations under the Agreement, is authorized to execute 
     a waiver and release of any and all claims against the Tribe, 
     its members, or any agency, official, or employee of the 
     Tribe, under Federal, State, or any other law for all--
       (A) past and present claims for injury to water rights 
     resulting from the diversion or use of water on the 
     reservation and on off-reservation trust land arising from 
     time immemorial through the enforceability date;
       (B) claims for injury to water rights arising after the 
     enforceability date resulting from the diversion or use of 
     water on the reservation and on off-reservation trust land in 
     a manner that is not in violation of the Agreement; and
       (C) past, present, and future claims arising out of or 
     related in any manner to the negotiation, execution, or 
     adoption of the Agreement, an applicable settlement judgement 
     or decree, or this title.
       (3) Claims against united states.--Except for the 
     specifically retained claims described in subsection (b)(2), 
     the Tribe, on behalf of itself and its members, as part of 
     the performance of the obligations of the Tribe under the 
     Agreement, is authorized to execute a waiver and release of 
     any claim against the United States, including agencies, 
     officials, or employees of the United States (except in the 
     capacity of the United States as trustee for other Indian 
     tribes), under Federal, State, or other law for any and all--
       (A)(i) past, present, and future claims for water rights 
     for the reservation and off-reservation trust land arising 
     from time immemorial and, thereafter, forever; and
       (ii) past, present, and future claims for water rights 
     arising from time immemorial and, thereafter, forever that 
     are based on aboriginal occupancy of land by the Tribe, its 
     members, or their predecessors;
       (B)(i) past and present claims relating in any manner to 
     damages, losses, or injuries to water, water rights, land, or 
     other resources due to loss of water or water rights 
     (including damages, losses, or injuries to hunting, fishing, 
     gathering, or cultural rights due to loss of water or water 
     rights, claims relating to interference with, diversion, or 
     taking of water, or claims relating to failure to protect, 
     acquire, or develop water, water rights, or water 
     infrastructure) within the reservation and off-reservation 
     trust land that first accrued at any time prior to the 
     enforceability date;
       (ii) past, present, and future claims for injury to water 
     rights arising from time immemorial and, thereafter, forever 
     that are based on aboriginal occupancy of land by the Tribe, 
     its members, or their predecessors; and
       (iii) claims for injury to water rights arising after the 
     enforceability date for the reservation and off-reservation 
     trust land resulting from the off-reservation diversion or 
     use of water in a manner that is not in violation of the 
     Agreement or applicable law;
       (C) past, present, and future claims arising out of, or 
     relating in any manner to, the negotiation, execution, or 
     adoption of the Agreement, an applicable settlement judgment 
     or decree, or this title;
       (D) past and present claims relating in any manner to 
     pending litigation of claims relating to the water rights of 
     the Tribe for the reservation and off-reservation trust land;
       (E) past and present claims relating to the operation, 
     maintenance, and replacement of existing irrigation systems 
     on the reservation constructed prior to the enforceability 
     date that first accrued at any time prior to the 
     enforceability date, which waiver shall only become effective 
     on the full appropriation and payment to the Tribe of 
     $4,950,000 of the amounts made available under section 
     312(b)(2)(B);
       (F) any claims relating to operation, maintenance, and 
     replacement of the WMAT rural water system, which waiver 
     shall only become effective on the date on which funds are 
     made available under section 312(b)(3)(B) and deposited in 
     the WMAT Maintenance Fund;
       (G) past and present breach of trust and negligence claims 
     for damage to the land and natural resources of the Tribe 
     caused by riparian and other vegetative manipulation by the 
     United States for the purpose of increasing water runoff from 
     the reservation that first accrued at any time prior to the 
     enforceability date; and
       (H) past and present claims for trespass, use, and 
     occupancy of the reservation in, on, and along the Black 
     River that first accrued at any time prior to the 
     enforceability date.
       (4) Effect on boundary claims.--Nothing in this title 
     expands, diminishes, or impacts any claims the Tribe may 
     assert, or any defense the United States may assert, 
     concerning title to land outside the most current survey, as 
     of the date of enactment of this Act, of the northern 
     boundary of the reservation.
       (b) Reservation of Rights and Retention of Claims.--
       (1) Reservation of rights and retention of claims by tribe 
     and united states.--
       (A) In general.--Notwithstanding the waiver and release of 
     claims authorized under subsection (a)(1), the Tribe, on 
     behalf of itself and its members, and the United States, 
     acting as trustee for the Tribe and its members, shall retain 
     any right--
       (i) subject to subparagraph 16.9 of the Agreement, to 
     assert claims for injuries to, and seek enforcement of, the 
     rights of the Tribe and its members under the Agreement or 
     this title in any Federal or State court of competent 
     jurisdiction;
       (ii) to assert claims for injuries to, and seek enforcement 
     of, the rights of the Tribe

[[Page S8151]]

     under the judgment and decree entered by the court in the 
     Gila River adjudication proceedings;
       (iii) to assert claims for injuries to, and seek 
     enforcement of, the rights of the Tribe under the judgment 
     and decree entered by the court in the Little Colorado River 
     adjudication proceedings;
       (iv) to object to any claims by or for any other Indian 
     tribe, Indian community or nation, or dependent Indian 
     community, or the United States on behalf of such a tribe, 
     community, or nation;
       (v) to participate in the Gila River adjudication 
     proceedings and the Little Colorado River adjudication 
     proceedings to the extent provided in subparagraph 14.1 of 
     the Agreement;
       (vi) to assert any claims arising after the enforceability 
     date for injury to water rights not specifically waived under 
     this section;
       (vii) to assert any past, present, or future claim for 
     injury to water rights against any other Indian tribe, Indian 
     community or nation, dependent Indian community, allottee, or 
     the United States on behalf of such a tribe, community, 
     nation, or allottee;
       (viii) to assert any past, present, or future claim for 
     trespass, use, and occupancy of the reservation in, on, or 
     along the Black River against Freeport-McMoRan Copper & Gold, 
     Inc., Phelps Dodge Corporation, or Phelps Dodge Morenci, Inc. 
     (or a predecessor or successor of those entities), including 
     all subsidiaries and affiliates of those entities; and
       (ix) to assert claims arising after the enforceability date 
     for injury to water rights resulting from the pumping of 
     water from land located within national forest land as of the 
     date of the Agreement in the south \1/2\ of T. 9 N., R. 24 
     E., the south \1/2\ of T. 9 N., R. 25 E., the north \1/2\ of 
     T. 8 N., R. 24 E., or the north \1/2\ of T. 8 N., R. 25 E., 
     if water from the land is used on the land or is transported 
     off the land for municipal, commercial, or industrial use.
       (B) Agreement.--On terms acceptable to the Tribe and the 
     United States, the Tribe and the United States are authorized 
     to enter into an agreement with Freeport-McMoRan Copper & 
     Gold, Inc., Phelps Dodge Corporation, or Phelps Dodge 
     Morenci, Inc. (or a predecessor or successor of those 
     entities), including all subsidiaries and affiliates of those 
     entities, to resolve the claims of the Tribe relating to the 
     trespass, use, and occupancy of the reservation in, on, and 
     along the Black River.
       (2) Reservation of rights and retention of claims by tribe 
     against united states.--Notwithstanding the waiver and 
     release of claims authorized under subsection (a)(3), the 
     Tribe, on behalf of itself and its members, shall retain any 
     right--
       (A) subject to subparagraph 16.9 of the Agreement, to 
     assert claims for injuries to, and seek enforcement of, the 
     rights of the Tribe and its members under the Agreement or 
     this title, in any Federal or State court of competent 
     jurisdiction;
       (B) to assert claims for injuries to, and seek enforcement 
     of, the rights of the Tribe and members under the judgment 
     and decree entered by the court in the Gila River 
     adjudication proceedings;
       (C) to assert claims for injuries to, and seek enforcement 
     of, the rights of the Tribe and members under the judgment 
     and decree entered by the court in the Little Colorado River 
     adjudication proceedings;
       (D) to object to any claims by or for any other Indian 
     tribe, Indian community or nation, or dependent Indian 
     community, or the United States on behalf of such a tribe, 
     community, or nation;
       (E) to assert past, present, or future claims for injury to 
     water rights or any other claims other than a claim to water 
     rights, against any other Indian tribe, Indian community or 
     nation, or dependent Indian community, or the United States 
     on behalf of such a tribe, community, or nation;
       (F) to assert claims arising after the enforceability date 
     for injury to water rights resulting from the pumping of 
     water from land located within national forest land as of the 
     date of the Agreement in the south \1/2\ of T. 9 N., R. 24 
     E., the south \1/2\ of T. 9 N., R. 25 E., the north \1/2\ of 
     T. 8 N., R. 24 E., or the north \1/2\ of T. 8 N., R. 25 E., 
     if water from that land is used on the land or is transported 
     off the land for municipal, commercial, or industrial use;
       (G) to assert any claims arising after the enforceability 
     date for injury to water rights not specifically waived under 
     this section;
       (H) to seek remedies and to assert any other claims not 
     specifically waived under this section; and
       (I) to assert any claim arising after the enforceability 
     date for a future taking by the United States of reservation 
     land, off-reservation trust land, or any property rights 
     appurtenant to that land, including any water rights set 
     forth in paragraph 4.0 of the Agreement.
       (3) Reservation of rights and retention of claims by united 
     states.--Notwithstanding the waiver and release of claims 
     authorized under subsection (a)(2), the United States shall 
     retain any right to assert any claim not specifically waived 
     in that subsection.
       (c) Effectiveness of Waiver and Releases.--Except as 
     otherwise specifically provided in subparagraphs (E) and (F) 
     of subsection (a)(3), the waivers and releases under 
     subsection (a) shall become effective on the enforceability 
     date.
       (d) Enforceability Date.--
       (1) In general.--This section takes effect on the date on 
     which the Secretary publishes in the Federal Register a 
     statement of findings that--
       (A)(i) to the extent that the Agreement conflicts with this 
     title, the Agreement has been revised through an amendment to 
     eliminate the conflict; and
       (ii) the Agreement, as so revised, has been executed by the 
     Secretary, the Tribe, and the Governor of the State;
       (B) the Secretary has fulfilled the requirements of 
     sections 305 and 306;
       (C) the amount made available under section 312(a) has been 
     deposited in the White Mountain Apache Tribe Water Rights 
     Settlement Subaccount;
       (D) the State funds described in subparagraph 13.3 of the 
     Agreement have been deposited in the White Mountain Apache 
     Tribe Water Rights Settlement Subaccount;
       (E) the Secretary has issued a record of decision approving 
     the construction of the WMAT rural water system in a 
     configuration substantially similar to that described in 
     section 307;
       (F) the judgments and decrees substantially in the form of 
     those attached to the Agreement as exhibits 12.9.6.1 and 
     12.9.6.2 have been approved by the respective trial courts; 
     and
       (G) the waivers and releases authorized and set forth in 
     subsection (a) have been executed by the Tribe and the 
     Secretary.
       (2) Failure of enforceability date to occur.--If the 
     Secretary does not publish a statement of findings under 
     paragraph (1) by April 30, 2021--
       (A) this title is repealed effective May 1, 2021, and any 
     activity by the Secretary to carry out this title shall 
     cease;
       (B) any amounts made available under section 312 shall 
     immediately revert to the general fund of the Treasury;
       (C) any other amounts deposited in the White Mountain 
     Apache Tribe Water Rights Settlement Subaccount (including 
     any amounts paid by the State in accordance with the 
     Agreement), together with any interest accrued on those 
     amounts, shall immediately be returned to the respective 
     sources of those funds; and
       (D) the Tribe and its members, and the United States, 
     acting as trustee for the Tribe and its members, shall retain 
     the right to assert past, present, and future water rights 
     claims and claims for injury to water rights for the 
     reservation and off-reservation trust land.
       (3) No additional rights to water.--Beginning on the 
     enforceability date, all land held by the United States in 
     trust for the Tribe and its members shall have no rights to 
     water other than those specifically quantified for the Tribe 
     and the United States, acting as trustee for the Tribe and 
     its members, for the reservation and off-reservation trust 
     land pursuant to paragraph 4.0 of the Agreement.
       (e) United States Enforcement Authority.--Nothing in this 
     title or the Agreement affects any right of the United States 
     to take any action, including environmental actions, under 
     any laws (including regulations and the common law) relating 
     to human health, safety, or the environment.
       (f) No Effect on Water Rights.--Except as provided in 
     paragraphs (1)(A)(ii), (1)(B)(ii), (3)(A)(ii), and (3)(B)(ii) 
     of subsection (a), nothing in this title affects any rights 
     to water of the Tribe, its members, or the United States, 
     acting as trustee for the Tribe and its members, for land 
     outside the boundaries of the reservation or the off-
     reservation trust land.
       (g) Entitlements.--Any entitlement to water of the Tribe, 
     its members, or the United States, acting as trustee for the 
     Tribe and its members, relating to the reservation or off-
     reservation trust land shall be satisfied from the water 
     resources granted, quantified, confirmed, or recognized with 
     respect to the Tribe, its members, and the United States by 
     the Agreement and this title.
       (h) Objection Prohibited.--Except as provided in paragraphs 
     (1)(A)(ix) and (2)(F) of subsection (b), the Tribe and the 
     United States, acting as trustee for the Tribe shall not--
       (1) object to the use of any well located outside the 
     boundaries of the reservation or the off-reservation trust 
     land in existence on the enforceability date; or
       (2) object to, dispute, or challenge after the 
     enforceability date the drilling of any well or the 
     withdrawal and use of water from any well in the Little 
     Colorado River adjudication proceedings, the Gila River 
     adjudication proceedings, or any other judicial or 
     administrative proceeding.

     SEC. 310. WHITE MOUNTAIN APACHE TRIBE WATER RIGHTS SETTLEMENT 
                   SUBACCOUNT.

       (a) Establishment.--There is established in the Lower 
     Colorado River Basin Development Fund a subaccount to be 
     known as the ``White Mountain Apache Tribe Water Rights 
     Settlement Subaccount'', consisting of--
       (1) the amounts deposited in the subaccount pursuant to 
     section 312(a); and
       (2) such other amounts as are available, including the 
     amounts provided in subparagraph 13.3 of the Agreement.
       (b) Use of Funds.--
       (1) In general.--Subject to paragraph (2), the Secretary 
     shall use amounts from the White Mountain Apache Tribe Water 
     Rights Settlement Subaccount for the planning, design, and 
     construction of the WMAT rural water system, in accordance 
     with section 307(a).
       (2) Requirements.--In carrying out the activities described 
     in paragraph (1), the Secretary shall use such sums as are 
     necessary

[[Page S8152]]

     from the White Mountain Apache Tribe Water Rights Settlement 
     Subaccount--
       (A) to provide the Bureau with amounts sufficient to carry 
     out oversight of the planning, design, and construction of 
     the WMAT rural water system;
       (B) to repay to the Treasury (or the United States) any 
     outstanding balance on the loan authorized by the White 
     Mountain Apache Tribe Rural Water System Loan Authorization 
     Act (Public Law 110-390; 122 Stat. 4191), after which 
     repayment, the Tribe shall have no further liability for the 
     balance on that loan; and
       (C) to carry out all required environmental compliance 
     activities associated with the planning, design, and 
     construction of the WMAT rural water system.
       (c) ISDEAA Contract.--
       (1) In general.--If the Tribe so requests, the planning, 
     design, and construction of the WMAT rural water system shall 
     be carried out pursuant to the terms of an agreement or 
     agreements entered into under section 307(h).
       (2) Enforcement.--The Secretary may pursue any judicial 
     remedies and carry out any administrative actions that are 
     necessary to enforce an agreement described in paragraph (1) 
     to ensure that amounts in the White Mountain Apache Tribe 
     Water Rights Settlement Subaccount are used in accordance 
     with this section.
       (d) Prohibition on Per Capita Distributions.--No amount of 
     the principal, or the interest or income accruing on the 
     principal, of the White Mountain Apache Tribe Water Rights 
     Settlement Subaccount shall be distributed to any member of 
     the Tribe on a per capita basis.
       (e) Availability of Funds.--
       (1) In general.--Amounts in the White Mountain Apache Tribe 
     Water Rights Settlement Subaccount shall not be available for 
     expenditure by the Secretary until the enforceability date.
       (2) Investment.--The Secretary shall invest the amounts in 
     the White Mountain Apache Tribe Water Rights Settlement 
     Subaccount in accordance with section 403(f)(4) of the 
     Colorado River Basin Project Act (43 U.S.C. 1543(f)(4)).
       (3) Use of interest.--The interest accrued on amounts 
     invested under paragraph (2) shall not be available for 
     expenditure or withdrawal until the enforceability date.

     SEC. 311. MISCELLANEOUS PROVISIONS.

       (a) Limited Waiver of Sovereign Immunity.--
       (1) In general.--In the case of a civil action described in 
     paragraph (2)--
       (A) the United States or the Tribe, or both, may be joined 
     in the civil action; and
       (B) any claim by the United States or the Tribe to 
     sovereign immunity from the civil action is waived for the 
     sole purpose of resolving any issue regarding the 
     interpretation or enforcement of this title or the Agreement.
       (2) Description of civil action.--A civil action referred 
     to in paragraph (1) is a civil action filed--
       (A) by any party to the Agreement or signatory to an 
     exhibit to the Agreement in a United States or State court 
     that--
       (i) relates solely and directly to the interpretation or 
     enforcement of this title or the Agreement; and
       (ii) names as a party the United States or the Tribe; or
       (B) by a landowner or water user in the Gila River basin or 
     Little Colorado River basin in the State that--
       (i) relates solely and directly to the interpretation or 
     enforcement of section 309 of this title and paragraph 12.0 
     of the Agreement; and
       (ii) names as a party the United States or the Tribe.
       (b) Effect of Title.--Nothing in this title quantifies or 
     otherwise affects any water right or claim or entitlement to 
     water of any Indian tribe, band, or community other than the 
     Tribe.
       (c) Limitation on Liability of United States.--
       (1) In general.--The United States shall have no trust or 
     other obligation--
       (A) to monitor, administer, or account for, in any manner, 
     any amount paid to the Tribe by any party to the Agreement 
     other than the United States; or
       (B) to review or approve the expenditure of those funds.
       (2) Indemnification.--The Tribe shall indemnify the United 
     States, and hold the United States harmless, with respect to 
     any claim (including claims for takings or breach of trust) 
     arising out of the receipt or expenditure of funds described 
     in paragraph (1)(A).
       (d) Applicability of Reclamation Reform Act.--The 
     Reclamation Reform Act of 1982 (43 U.S.C. 390aa et seq.) and 
     any other acreage limitation or full-cost pricing provision 
     under Federal law shall not apply to any individual, entity, 
     or land solely on the basis of--
       (1) receipt of any benefit under this title;
       (2) the execution or performance of the Agreement; or
       (3) the use, storage, delivery, lease, or exchange of CAP 
     water.
       (e) Secretarial Power Sites.--The portions of the following 
     named secretarial power site reserves that are located on the 
     Fort Apache Indian Reservation or the San Carlos Apache 
     Reservation, as applicable, shall be transferred and restored 
     into the name of the Tribe or the San Carlos Apache Tribe, 
     respectively:
       (1) Lower Black River (T. 3 N., R. 26 E.; T. 3 N., R. 27 
     E.).
       (2) Black River Pumps (T. 2 N., R. 25 E.; T. 2 N., R. 26 
     E.; T. 3 N., R. 26 E.).
       (3) Carrizo (T. 4 N., R. 20 E.; T. 4 N., R. 21 E.; T. 4\1/
     2\ N., R. 19 E.; T. 4\1/2\ N., R. 20 E.; T. 4\1/2\ N., R. 21 
     E.; T. 5 N., R. 19 E.).
       (4) Knob (T. 5 N., R. 18 E.; T. 5 N., R. 19 E.).
       (5) Walnut Canyon (T. 5 N., R. 17 E.; T. 5 N., R. 18 E.).
       (6) Gleason Flat (T. 4\1/2\ N., R. 16 E.; T. 5 N., R. 16 
     E.).
       (f) No Effect on Future Allocations.--Water received under 
     a lease or exchange of tribal CAP water under this title 
     shall not affect any future allocation or reallocation of CAP 
     water by the Secretary.
       (g) After-acquired Trust Land.--
       (1) Requirement of act of congress.--
       (A) Legal title.--Subject to subparagraph (B), after the 
     enforceability date, if the Tribe seeks to have legal title 
     to additional land in the State located outside the exterior 
     boundaries of the reservation taken into trust by the United 
     States for the benefit of the Tribe, the Tribe may do so only 
     pursuant to an Act of Congress specifically authorizing the 
     transfer for the benefit of the Tribe.
       (B) Exceptions.--Subparagraph (A) shall not apply to--
       (i) the restoration of land to the reservation subsequently 
     and finally determined to be part of the reservation through 
     resolution of any dispute between the Tribe and the United 
     States over the location of the reservation boundary, unless 
     required by Federal law; or
       (ii) off-reservation trust land acquired prior to January 
     1, 2008.
       (2) Water rights.--
       (A) In general.--After-acquired trust land that is located 
     outside the reservation shall not include federally reserved 
     rights to surface water or groundwater.
       (B) Restored land.--Land that is restored to the 
     reservation as the result of the resolution of any 
     reservation boundary dispute between the Tribe and the United 
     States, or any fee simple land within the reservation that is 
     placed into trust, shall have water rights pursuant to 
     section 308(b).
       (3) Acceptance of land in trust status.--
       (A) In general.--If the Tribe acquires legal fee title to 
     land that is located within the exterior boundaries of the 
     reservation, the Secretary shall accept the land in trust 
     status for the benefit of the Tribe in accordance with 
     applicable Federal law (including regulations) for such real 
     estate acquisitions.
       (B) Reservation status.--Land held in trust by the 
     Secretary under subparagraph (A), or restored to the 
     reservation as a result of resolution of a boundary dispute 
     between the Tribe and the United States, shall be deemed to 
     be part of the reservation.
       (h) Conforming Amendment.--Section 3(b)(2) of the White 
     Mountain Apache Tribe Rural Water System Loan Authorization 
     Act (Public Law 110-390; 122 Stat. 4191) is amended by 
     striking ``January 1, 2013'' and inserting ``May 1, 2021''.

     SEC. 312. FUNDING.

       (a) Rural Water System.--
       (1) Mandatory appropriations.--Subject to paragraph (2), 
     out of any funds in the Treasury not otherwise appropriated, 
     the Secretary of the Treasury shall transfer to the Secretary 
     to carry out the planning, engineering, design, environmental 
     compliance, and construction of the WMAT rural water system 
     $126,193,000.
       (2) Inclusions.--The amount made available under paragraph 
     (1) shall include such sums as are necessary, but not to 
     exceed 4 percent of the construction contract costs, for the 
     Bureau to carry out oversight of activities for planning, 
     design, environmental compliance, and construction of the 
     rural water system.
       (b) WMAT Settlement and Maintenance Funds.--
       (1) Definition of funds.--In this subsection, the term 
     ``Funds'' means--
       (A) the WMAT Settlement Fund established by paragraph 
     (2)(A); and
       (B) the WMAT Maintenance Fund established by paragraph 
     (3)(A).
       (2) WMAT settlement fund.--
       (A) Establishment.--There is established in the Treasury of 
     the United States a fund to be known as the ``WMAT Settlement 
     Fund'', to be administered by the Secretary, consisting of 
     the amounts deposited in the fund under subparagraph (B), 
     together with any interest accrued on those amounts, for use 
     by the Tribe in accordance with subparagraph (C).
       (B) Transfers to fund.--
       (i) In general.--There are authorized to be appropriated to 
     the Secretary for deposit in the WMAT Settlement Fund--

       (I) $78,500,000; and
       (II) any additional amounts described in clause (ii), if 
     applicable.

       (ii) Authorization of additional amounts.--In accordance 
     with subsection (e)(4)(B), if the WMAT rural water system is 
     conveyed to the Tribe before the date on which the 
     $35,000,000 described in subsection (e)(2) is completely made 
     available, there is authorized to be appropriated to the 
     Secretary, for deposit in the WMAT Settlement Fund, any 
     remaining amounts that would otherwise have been made 
     available for expenditure from the Cost Overrun Subaccount.
       (C) Use of funds.--
       (i) In general.--The Tribe shall use amounts in the WMAT 
     Settlement Fund for any of the following purposes:

       (I) Fish production, including hatcheries.
       (II) Rehabilitation of recreational lakes and existing 
     irrigation systems.

[[Page S8153]]

       (III) Water-related economic development projects.
       (IV) Protection, restoration, and economic development of 
     forest and watershed health.

       (ii) Existing irrigation systems.--Of the amounts deposited 
     in the Fund under subparagraph (B), not less than $4,950,000 
     shall be used for the rehabilitation of existing irrigation 
     systems.
       (3) WMAT maintenance fund.--
       (A) Establishment.--There is established in the Treasury of 
     the United States a fund to be known as the ``WMAT 
     Maintenance Fund'', to be administered by the Secretary, 
     consisting of the amounts deposited in the fund under 
     subparagraph (B), together with any interest accrued on those 
     amounts, for use by the Tribe in accordance with subparagraph 
     (C).
       (B) Mandatory appropriations.--Out of any funds in the 
     Treasury not otherwise appropriated, the Secretary of the 
     Treasury shall transfer to the Secretary $50,000,000 for 
     deposit in the WMAT Maintenance Fund.
       (C) Use of funds.--The Tribe shall use amounts in the WMAT 
     Maintenance Fund only for the operation, maintenance, and 
     replacement costs associated with the delivery of water 
     through the WMAT rural water system.
       (4) Administration.--The Secretary shall manage the Funds 
     in accordance with the American Indian Trust Fund Management 
     Reform Act of 1994 (25 U.S.C. 4001 et seq.), including by 
     investing amounts in the Funds in accordance with--
       (A) the Act of April 1, 1880 (25 U.S.C. 161); and
       (B) the first section of the Act of June 24, 1938 (25 
     U.S.C. 162a).
       (5) Availability of amounts from funds.--Amounts in the 
     Funds shall be available for expenditure or withdrawal only 
     after the enforceability date and in accordance with 
     subsection (f).
       (6) Expenditure and withdrawal.--
       (A) Tribal management plan.--
       (i) In general.--The Tribe may withdraw all or part of the 
     amounts in the Funds on approval by the Secretary of a tribal 
     management plan, as described in the American Indian Trust 
     Fund Management Reform Act of 1994 (25 U.S.C. 4001 et seq.).
       (ii) Requirements.--In addition to the requirements under 
     the American Indian Trust Fund Management Reform Act of 1994 
     (25 U.S.C. 4001 et seq.), a tribal management plan under this 
     subparagraph shall require the Tribe to use any amounts 
     withdrawn from the Funds in accordance with paragraph (2)(C) 
     or (3)(C), as applicable.
       (iii) Enforcement.--The Secretary may take judicial or 
     administrative action to enforce the provisions of a tribal 
     management plan described in clause (i) to ensure that any 
     amounts withdrawn from the Funds under the tribal management 
     plan are used in accordance with this title and the 
     Agreement.
       (iv) Liability.--If the Tribe exercises the right to 
     withdraw amounts from the Funds, neither the Secretary nor 
     the Secretary of the Treasury shall retain any liability for 
     the expenditure or investment of the amounts.
       (B) Expenditure plan.--
       (i) In general.--The Tribe shall submit to the Secretary 
     for approval an expenditure plan for any portion of the 
     amounts in the Funds that the Tribe does not withdraw under 
     the tribal management plan.
       (ii) Description.--The expenditure plan shall describe the 
     manner in which, and the purposes for which, amounts 
     remaining in the Funds will be used.
       (iii) Approval.--On receipt of an expenditure plan under 
     clause (i), the Secretary shall approve the plan, if the 
     Secretary determines that the plan is reasonable and 
     consistent with this title and the Agreement.
       (iv) Annual report.--For each of the Funds, the Tribe shall 
     submit to the Secretary an annual report that describes all 
     expenditures from the Fund during the year covered by the 
     report.
       (C) Certain per capita distributions prohibited.--No amount 
     in the Funds shall be distributed to any member of the Tribe 
     on a per capita basis.
       (c) Cost Indexing.--All amounts made available under 
     subsections (a), (b), and (e) shall be adjusted as necessary 
     to reflect the changes since October 1, 2007, in the 
     construction cost indices applicable to the types of 
     construction involved in the construction of the WMAT rural 
     water supply system, the maintenance of the rural water 
     supply system, and the construction or rehabilitation of the 
     other development projects described in subsection (b)(2)(C).
       (d) Operation, Maintenance, and Replacement.--Out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary 
     $2,500,000 for the operation, maintenance, and replacement 
     costs of the WMAT rural water system, to remain available 
     until the conditions described in section 307(f) have been 
     met.
       (e) Cost Overrun Subaccount.--
       (1) Establishment.--There is established in the Lower 
     Colorado River Basin Development Fund a subaccount to be 
     known as the ``WMAT Cost Overrun Subaccount'', to be 
     administered by the Secretary, consisting of the amounts 
     deposited in the subaccount under paragraph (2), together 
     with any interest accrued on those amounts, for use by the 
     Secretary in accordance with paragraph (4).
       (2) Mandatory appropriations; authorization of 
     appropriations.--
       (A) Mandatory appropriations.--Out of any funds in the 
     Treasury not otherwise appropriated, the Secretary of the 
     Treasury shall transfer to the Secretary $24,000,000 for 
     deposit in the WMAT Cost Overrun Subaccount.
       (B) Authorization of appropriations.--There is authorized 
     to be appropriated for deposit in the WMAT Cost Overrun 
     Subaccount $11,000,000.
       (3) Availability of funds.--
       (A) In general.--Amounts in the WMAT Cost Overrun 
     Subaccount shall not be available for expenditure by the 
     Secretary until the enforceability date.
       (B) Investment.--The Secretary shall invest the amounts in 
     the WMAT Cost Overrun Subaccount in accordance with section 
     403(f)(4) of the Colorado River Basin Project Act (43 U.S.C. 
     1543(f)(4)).
       (C) Use of interest.--The interest accrued on the amounts 
     invested under subparagraph (B) shall not be available for 
     expenditure or withdrawal until the enforceability date.
       (4) Use of cost overrun subaccount.--
       (A) Initial use.--The Secretary shall use the amounts in 
     the WMAT Cost Overrun Subaccount to complete the WMAT rural 
     water system or to carry out activities relating to the 
     operation, maintenance, or replacement of facilities of the 
     WMAT rural water system, as applicable, if the Secretary 
     determines that the amounts made available under subsections 
     (a) and (d) will be insufficient in the period before title 
     to the WMAT rural water system is conveyed to the Tribe--
       (i) to complete the WMAT rural water system; or
       (ii) to operate and maintain the WMAT rural water system.
       (B) Transfer of funds.--All unobligated amounts remaining 
     in the Cost Overrun Subaccount on the date on which title to 
     the WMAT rural water system is conveyed to the Tribe shall 
     be--
       (i) returned to the general fund of the Treasury; and
       (ii) on an appropriation pursuant to subsection 
     (b)(2)(B)(ii), deposited in the WMAT Settlement Fund and made 
     available to the Tribe for use in accordance with subsection 
     (b)(2)(C).
       (f) Conditions.--The amounts made available to the 
     Secretary for deposit in the WMAT Maintenance Fund, together 
     with any interest accrued on those amounts under subsection 
     (b)(3) and any interest accruing on the WMAT Settlement Fund 
     under subsection (b)(2), shall not be available for 
     expenditure or withdrawal until the WMAT rural water system 
     is transferred to the Tribe under section 307(d)(2).
       (g) Receipt and Acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this title the funds transferred under subsections (a), (b), 
     (d), and (e), without further appropriation, to remain 
     available until expended.

     SEC. 313. ANTIDEFICIENCY.

       The United States shall not be liable for failure to carry 
     out any obligation or activity authorized to be carried out 
     under this title (including any such obligation or activity 
     under the Agreement) if adequate appropriations are not 
     provided by Congress expressly to carry out the purposes of 
     this title.

     SEC. 314. COMPLIANCE WITH ENVIRONMENTAL LAWS.

       In implementing the Agreement and carrying out this title, 
     the Secretary shall promptly comply with all applicable 
     requirements of--
       (1) the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.);
       (2) the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
     seq.);
       (3) all other applicable Federal environmental laws; and
       (4) all regulations promulgated under the laws described in 
     paragraphs (1) through (3).

              TITLE IV--CROW TRIBE WATER RIGHTS SETTLEMENT

     SEC. 401. SHORT TITLE.

       This title may be cited as the ``Crow Tribe Water Rights 
     Settlement Act of 2010''.

     SEC. 402. PURPOSES.

       The purposes of this title are--
       (1) to achieve a fair, equitable, and final settlement of 
     claims to water rights in the State of Montana for--
       (A) the Crow Tribe; and
       (B) the United States for the benefit of the Tribe and 
     allottees;
       (2) to authorize, ratify, and confirm the Crow Tribe-
     Montana Water Rights Compact entered into by the Tribe and 
     the State of Montana on June 22, 1999;
       (3) to authorize and direct the Secretary of the Interior--
       (A) to execute the Crow Tribe-Montana Water Rights Compact; 
     and
       (B) to take any other action necessary to carry out the 
     Compact in accordance with this title; and
       (4) to ensure the availability of funds necessary for the 
     implementation of the Compact and this title.

     SEC. 403. DEFINITIONS.

       In this title:
       (1) Allottee.--The term ``allottee'' means any individual 
     who holds a beneficial real property interest in an allotment 
     of Indian land that is--
       (A) located within the Reservation or the ceded strip; and
       (B) held in trust by the United States.
       (2) Ceded strip.--The term ``ceded strip'' means the area 
     identified as the ceded strip

[[Page S8154]]

     on the map included in appendix 5 of the Compact.
       (3) CIP om&r.--The term ``CIP OM&R'' means--
       (A) any recurring or ongoing activity associated with the 
     day-to-day operation of the Crow Irrigation Project;
       (B) any activity relating to scheduled or unscheduled 
     maintenance of the Crow Irrigation Project; and
       (C) any activity relating to replacement of a feature of 
     the Crow Irrigation Project.
       (4) Compact.--The term ``Compact'' means the water rights 
     compact between the Tribe and the State of Montana contained 
     in section 85-20-901 of the Montana Code Annotated (2009) 
     (including any exhibit, part, or amendment to the Compact).
       (5) Crow irrigation project.--
       (A) In general.--The term ``Crow Irrigation Project'' means 
     the irrigation project--
       (i) authorized by section 31 of the Act of March 3, 1891 
     (26 Stat. 1040);
       (ii) managed by the Secretary (acting through the Bureau of 
     Indian Affairs); and
       (iii) consisting of the project units of--

       (I) Agency;
       (II) Bighorn;
       (III) Forty Mile;
       (IV) Lodge Grass #1;
       (V) Lodge Grass #2;
       (VI) Pryor;
       (VII) Reno;
       (VIII) Soap Creek; and
       (IX) Upper Little Horn.

       (B) Inclusion.--The term ``Crow Irrigation Project'' 
     includes land held in trust by the United States for the 
     Tribe and the allottees in the Bozeman Trail and Two Leggins 
     irrigation districts.
       (6) Enforceability date.--The term ``enforceability date'' 
     means the date on which the Secretary publishes in the 
     Federal Register the statement of findings described in 
     section 410(e).
       (7) Final.--The term ``final'' with reference to approval 
     of the decree described in section 410(e)(1)(A), means--
       (A) completion of any direct appeal to the Montana Supreme 
     Court of a decree by the Montana Water Court pursuant to 
     section 85-2-235 of the Montana Code Annotated (2009), 
     including the expiration of time for filing of any such 
     appeal; or
       (B) completion of any appeal to the appropriate United 
     States Court of Appeals, including the expiration of time in 
     which a petition for certiorari may be filed in the United 
     States Supreme Court, denial of such petition, or issuance of 
     a final judgment of the United States Supreme Court, 
     whichever occurs last.
       (8) Fund.--The term ``Fund'' means the Crow Settlement Fund 
     established by section 411.
       (9) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       (10) Joint stipulation of settlement.--The term ``joint 
     stipulation of settlement'' means the joint stipulation of 
     settlement relating to the civil action styled Crow Tribe of 
     Indians v. Norton, No. 02-284 (D.D.C. 2006).
       (11) MR&I system.--
       (A) In general.--The term ``MR&I System'' means the 
     municipal, rural, and industrial water system of the 
     Reservation, generally described in the document entitled 
     ``Crow Indian Reservation Municipal, Rural and Industrial 
     Water System Engineering Report'' prepared by DOWL HKM, and 
     dated July 2008 and updated in a status report prepared by 
     DOWL HKM dated December 2009.
       (B) Inclusions.--The term ``MR&I System'' includes--
       (i) the raw water intake, water treatment plant, pipelines, 
     storage tanks, pumping stations, pressure-reducing valves, 
     electrical transmission facilities, and other items 
     (including real property and easements necessary to deliver 
     potable water to the Reservation) appurtenant to the system 
     described in subparagraph (A); and
       (ii) in descending order of construction priority--

       (I) the Bighorn River Valley Subsystem;
       (II) the Little Bighorn River Valley Subsystem; and
       (III) Pryor Extension.

       (12) MR&I system om&r.--The term ``MR&I System OM&R'' 
     means--
       (A) any recurring or ongoing activity associated with the 
     day-to-day operation of the MR&I System;
       (B) any activity relating to scheduled or unscheduled 
     maintenance of the MR&I System; and
       (C) any activity relating to replacement of project 
     features of the MR&I System.
       (13) Reservation.--The term ``Reservation'' means the area 
     identified as the Reservation on the map in appendix 4 of the 
     Compact.
       (14) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (15) Tribal compact administration.--The term ``Tribal 
     Compact Administration'' means any activity relating to--
       (A) the development or enactment by the Tribe of the tribal 
     water code;
       (B) establishment by the Tribe of a water resources 
     department; and
       (C) the operation by the Tribe of that water resources 
     department (or a successor agency) during the 10-year period 
     beginning on the date of establishment of the department.
       (16) Tribal water code.--The term ``tribal water code'' 
     means a water code adopted by the Tribe in accordance with 
     section 407(f).
       (17) Tribal water rights.--The term ``tribal water rights'' 
     means--
       (A) the water rights of the Tribe described in article III 
     of the Compact; and
       (B) the water rights provided to the Tribe under section 
     408.
       (18) Tribe.--The term ``Tribe'' means the Crow Tribe of 
     Indians of the State of Montana on behalf of itself and its 
     members (but not its members in their capacities as 
     allottees).

     SEC. 404. RATIFICATION OF COMPACT.

       (a) Ratification of Compact.--
       (1) In general.--Except as modified by this title, and to 
     the extent the Compact does not conflict with this title, the 
     Compact is authorized, ratified, and confirmed.
       (2) Amendments to compact.--If amendments are executed to 
     make the Compact consistent with this title, those amendments 
     are also authorized, ratified, and confirmed to the extent 
     such amendments are consistent with this title.
       (b) Execution of Compact.--
       (1) In general.--To the extent that the Compact does not 
     conflict with this title, the Secretary is directed to and 
     shall promptly execute the Compact, including all exhibits to 
     or parts of the Compact requiring the signature of the 
     Secretary.
       (2) Modifications.--Nothing in this title precludes the 
     Secretary from approving modifications to appendices or 
     exhibits to the Compact not inconsistent with this title, to 
     the extent such modifications do not otherwise require 
     Congressional approval pursuant to section 2116 of the 
     Revised Statutes (25 U.S.C. 177) or other applicable Federal 
     law.
       (c) Environmental Compliance.--
       (1) In general.--In implementing the Compact, the Secretary 
     shall promptly comply with all applicable aspects of the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.), the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
     seq.), and all other applicable environmental Acts and 
     regulations.
       (2) Execution of the compact.--
       (A) In general.--Execution of the Compact by the Secretary 
     under this section shall not constitute a major Federal 
     action under the National Environmental Policy Act of 1969 
     (42 U.S.C. 4321 et seq.).
       (B) Compliance.--The Secretary shall carry out all Federal 
     compliance activities necessary to implement the Compact.

     SEC. 405. REHABILITATION AND IMPROVEMENT OF CROW IRRIGATION 
                   PROJECT.

       (a) In General.--Notwithstanding any other provision of 
     law, and without altering applicable law (including 
     regulations) under which the Bureau of Indian Affairs 
     collects assessments and carries out CIP OM&R, other than the 
     rehabilitation and improvement carried out under this 
     section, the Secretary, acting through the Commissioner of 
     Reclamation, shall carry out such activities as are necessary 
     to rehabilitate and improve the water diversion and delivery 
     features of the Crow Irrigation Project, in accordance with 
     an agreement to be negotiated between the Secretary and the 
     Tribe.
       (b) Lead Agency.--The Bureau of Reclamation shall serve as 
     the lead agency with respect to any activity to rehabilitate 
     or improve the water diversion or delivery features of the 
     Crow Irrigation Project.
       (c) Scope.--
       (1) In general.--The scope of the rehabilitation and 
     improvement under this section shall be as generally 
     described in the document entitled ``Engineering Evaluation 
     of Existing Conditions, Crow Agency Rehabilitation Study'' 
     prepared by DOWL HKM, and dated August 2007 and updated in a 
     status report dated December 2009 by DOWL HKM, on the 
     condition that prior to beginning construction activities, 
     the Secretary shall review the design of the proposed 
     rehabilitation or improvement and perform value engineering 
     analyses.
       (2) Negotiation with tribe.--On the basis of the review 
     described in paragraph (1), the Secretary shall negotiate 
     with the Tribe appropriate changes to the final design so 
     that the final design meets applicable industry standards, as 
     well as changes, if any, that would improve the cost-
     effectiveness of the delivery of irrigation water and take 
     into consideration the equitable distribution of water to 
     allottees.
       (d) Nonreimbursability of Costs.--All costs incurred by the 
     Secretary in carrying out this section shall be 
     nonreimbursable.
       (e) Funding.--The total amount of obligations incurred by 
     the Secretary in carrying out this section shall not exceed 
     $131,843,000, except that the total amount of $131,843,000 
     shall be increased or decreased, as appropriate, based on 
     ordinary fluctuations from May 1, 2008, in construction cost 
     indices applicable to the types of construction involved in 
     the rehabilitation and improvement.
       (f) Tribal Implementation Agreement.--
       (1) In general.--At the request of the Tribe, in accordance 
     with applicable Federal law, the Secretary shall enter into 1 
     or more agreements with the Tribe to implement the provisions 
     of this section by which the Tribe shall plan, design, and 
     construct any or all of the rehabilitation and improvement 
     required by this section.
       (2) Oversight costs.--The Bureau of Reclamation and the 
     Tribe shall negotiate the cost of any oversight activities 
     carried out by the Bureau of Reclamation for each agreement 
     under this section, provided that the total cost for that 
     oversight shall not exceed 4 percent of the total project 
     costs.
       (g) Acquisition of Land.--
       (1) Tribal easements and rights-of-way.--

[[Page S8155]]

       (A) In general.--Upon request, and in partial consideration 
     for the funding provided under section 414(a), the Tribe 
     shall consent to the grant of such easements and rights-of-
     way over tribal land as may be necessary for the 
     rehabilitation and improvement of the Crow Irrigation Project 
     authorized by this section at no cost to the United States.
       (B) Jurisdiction.--The Tribe shall retain criminal and 
     civil jurisdiction over any lands that were subject to tribal 
     jurisdiction prior to the granting of an easement or right-
     of-way in connection with the rehabilitation and improvement 
     of the Crow Irrigation Project.
       (2) User easements and rights-of-way.--In partial 
     consideration of the rehabilitation and improvement of the 
     Crow Irrigation Project authorized by this section and as a 
     condition of continued service from the Crow Irrigation 
     Project after the enforceability date, any water user of the 
     Crow Irrigation Project shall consent to the grant of such 
     easements and rights-of-way as may be necessary for the 
     rehabilitation and improvements authorized under this section 
     at no cost to the Secretary.
       (3) Land acquired by the united states.--Land acquired by 
     the United States in connection with rehabilitation and 
     improvement of the Crow Irrigation Project authorized by this 
     section shall be held in trust by the United States on behalf 
     of the Tribe as part of the Reservation of the Tribe.
       (h) Project Management Committee.--The Secretary shall 
     facilitate the formation of a project management committee 
     composed of representatives from the Bureau of Reclamation, 
     the Bureau of Indian Affairs, and the Tribe--
       (1) to review cost factors and budgets for construction, 
     operation, and maintenance activities relating to the Crow 
     Irrigation Project;
       (2) to improve management of inherently governmental 
     activities through enhanced communication; and
       (3) to seek additional ways to reduce overall costs for the 
     rehabilitation and improvement of the Crow Irrigation 
     Project.

     SEC. 406. DESIGN AND CONSTRUCTION OF MR&I SYSTEM.

       (a) In General.--The Secretary, acting through the 
     Commissioner of Reclamation, shall plan, design, and 
     construct the water diversion and delivery features of the 
     MR&I System, in accordance with 1 or more agreements between 
     the Secretary and the Tribe.
       (b) Lead Agency.--The Bureau of Reclamation shall serve as 
     the lead agency with respect to any activity to design and 
     construct the water diversion and delivery features of the 
     MR&I System.
       (c) Scope.--
       (1) In general.--The scope of the design and construction 
     under this section shall be as generally described in the 
     document entitled ``Crow Indian Reservation Municipal, Rural 
     and Industrial Water System Engineering Report'' prepared by 
     DOWL HKM, and dated July 2008 and updated in a status report 
     dated December 2009 by DOWL HKM, on the condition that prior 
     to beginning construction activities, the Secretary shall 
     review the design of the proposed MR&I System and perform 
     value engineering analyses.
       (2) Negotiation with tribe.--On the basis of the review 
     described in paragraph (1), the Secretary shall negotiate 
     with the Tribe appropriate changes to the final design so 
     that the final design meets applicable industry standards, as 
     well as changes, if any, that would improve the cost-
     effectiveness of the delivery of MR&I System water and take 
     into consideration the equitable distribution of water to 
     allottees.
       (d) Nonreimbursability of Costs.--All costs incurred by the 
     Secretary in carrying out this section shall be 
     nonreimbursable.
       (e) Funding.--The total amount of obligations incurred by 
     the Secretary in carrying out this section shall not exceed 
     $246,381,000, except that the total amount of $246,381,000 
     shall be increased or decreased, as appropriate, based on 
     ordinary fluctuations from May 1, 2008, in construction cost 
     indices applicable to the types of construction involved in 
     the design and construction of the MR&I System.
       (f) Tribal Implementation Agreement.--
       (1) In general.--At the request of the Tribe, in accordance 
     with applicable Federal law, the Secretary shall enter into 1 
     or more agreements with the Tribe to implement the provisions 
     of this section by which the Tribe shall plan, design, and 
     construct any or all of the rehabilitation and improvement 
     required by this section.
       (2) Oversight costs.--The Bureau of Reclamation and the 
     Tribe shall negotiate the cost of any oversight activities 
     carried out by the Bureau of Reclamation for each agreement 
     under this section, provided that the total cost for that 
     oversight shall not exceed 4 percent of the total project 
     costs.
       (g) Acquisition of Land.--
       (1) Tribal easements and rights-of-way.--
       (A) In general.--Upon request, and in partial consideration 
     for the funding provided under section 414(b), the Tribe 
     shall consent to the grant of such easements and rights-of-
     way over tribal land as may be necessary for the construction 
     of the MR&I System authorized by this section at no cost to 
     the United States.
       (B) Jurisdiction.--The Tribe shall retain criminal and 
     civil jurisdiction over any lands that were subject to tribal 
     jurisdiction prior to the granting of an easement or right-
     of-way in connection with the construction of the MR&I 
     System.
       (2) Land acquired by the united states.--Land acquired by 
     the United States in connection with the construction of the 
     MR&I System authorized by this section shall be held in trust 
     by the United States on behalf of the Tribe as part of the 
     Reservation of the Tribe.
       (h) Conveyance of Title to MR&I System Facilities.----
       (1) In general.--The Secretary shall convey title to each 
     MR&I System facility or section of a MR&I System facility 
     authorized under subsection (a) to the Tribe after completion 
     of construction of a MR&I System facility or a section of a 
     MR&I System facility that is operating and delivering water.
       (2) Liability.--
       (A) In general.--Effective on the date of the conveyance 
     authorized by this subsection, the United States shall not be 
     held liable by any court for damages of any kind arising out 
     of any act, omission, or occurrence relating to the land, 
     buildings, or facilities conveyed under this subsection, 
     other than damages caused by acts of negligence committed by 
     the United States, or by employees or agents of the United 
     States, prior to the date of conveyance.
       (B) Tort claims.--Nothing in this section increases the 
     liability of the United States beyond the liability provided 
     in chapter 171 of title 28, United States Code (commonly 
     known as the ``Federal Tort Claims Act'').
       (3) Notice of proposed conveyance.--Not later than 45 days 
     before the date of a proposed conveyance of title to any MR&I 
     System facility, the Secretary shall submit to the Committee 
     on Natural Resources of the House of Representatives and to 
     the Committee on Energy and Natural Resources of the Senate 
     notice of the conveyance of each such MR&I System facility or 
     section of a MR&I System facility.
       (4) MR&I system om&r obligation of the federal government 
     after conveyance.--The Federal Government shall have no 
     obligation to pay for the operation, maintenance, or 
     replacement costs of the MR&I System beginning on the date on 
     which--
       (A) title to any MR&I System facility or section of a MR&I 
     System facility under this subsection is conveyed to the 
     Tribe; and
       (B) the amounts required to be deposited in the MR&I System 
     OM&R Account pursuant to section 411 have been deposited in 
     that account.
       (i) Authority of Tribe.--Upon transfer of title to the MR&I 
     System or any section of a MR&I System facility to the Tribe 
     in accordance with subsection (h), the Tribe is authorized to 
     collect water use charges from customers of the MR&I System 
     to cover--
       (1) MR&I System OM&R costs; and
       (2) any other costs relating to the construction and 
     operation of the MR&I System.
       (j) Alienation and Taxation.--Conveyance of title to the 
     Tribe pursuant to subsection (h) does not waive or alter any 
     applicable Federal law prohibiting alienation or taxation of 
     the MR&I System or the underlying Reservation land.
       (k) Technical Assistance.--The Secretary shall provide 
     technical assistance to prepare the Tribe for operation of 
     the MR&I System, including operation and management training.
       (l) Project Management Committee.--The Secretary shall 
     facilitate the formation of a project management committee 
     composed of representatives from the Bureau of Reclamation, 
     the Bureau of Indian Affairs, and the Tribe--
       (1) to review cost factors and budgets for construction, 
     operation and maintenance activities for the MR&I System;
       (2) to improve management of inherently governmental 
     activities through enhanced communication; and
       (3) to seek additional ways to reduce overall costs for the 
     MR&I System.
       (m) Non-Federal Contribution.--
       (1) In general.--Prior to completion of the final design of 
     the MR&I System required by subsection (c), the Secretary 
     shall consult with the Tribe, the State of Montana, and other 
     affected non-Federal parties to discuss the possibility of 
     receiving non-Federal contributions to the cost of the MR&I 
     System.
       (2) Negotiations.--If, based on the extent to which non-
     Federal parties are expected to use the MR&I System, a non-
     Federal contribution to the MR&I System is determined by the 
     parties described in paragraph (1) to be appropriate, the 
     Secretary shall initiate negotiations for an agreement on the 
     means by which such contributions may be provided.

     SEC. 407. TRIBAL WATER RIGHTS.

       (a) Intent of Congress.--It is the intent of Congress to 
     provide to each allottee benefits that are equivalent to or 
     exceed the benefits allottees possess as of the date of 
     enactment of this Act, taking into consideration--
       (1) the potential risks, cost, and time delay associated 
     with litigation that would be resolved by the Compact and 
     this title;
       (2) the availability of funding under this title and from 
     other sources;
       (3) the availability of water from the tribal water rights; 
     and
       (4) the applicability of section 7 of the Act of February 
     8, 1887 (25 U.S.C. 381) and this title to protect the 
     interests of allottees.
       (b) Confirmation of Tribal Water Rights.--
       (1) In general.--The tribal water rights are ratified, 
     confirmed, and declared to be valid.

[[Page S8156]]

       (2) Use.--Use of the tribal water rights shall be subject 
     to the terms and conditions established by the Compact.
       (c) Holding in Trust.--The tribal water rights--
       (1) shall be held in trust by the United States for the use 
     and benefit of the Tribe and the allottees in accordance with 
     this section; and
       (2) shall not be subject to forfeiture or abandonment.
       (d) Allottees.--
       (1) Applicability of act of february 8, 1887.--The 
     provisions of section 7 of the Act of February 8, 1887 (25 
     U.S.C. 381), relating to the use of water for irrigation 
     purposes shall apply to the tribal water rights.
       (2) Entitlement to water.--Any entitlement to water of an 
     allottee under Federal law shall be satisfied from the tribal 
     water rights.
       (3) Allocations.--Allottees shall be entitled to a just and 
     equitable allocation of water for irrigation purposes.
       (4) Exhaustion of remedies.--Before asserting any claim 
     against the United States under section 7 of the Act of 
     February 8, 1887 (25 U.S.C. 381), or any other applicable 
     law, an allottee shall exhaust remedies available under the 
     tribal water code or other applicable tribal law.
       (5) Claims.--Following exhaustion of remedies available 
     under the tribal water code or other applicable tribal law, 
     an allottee may seek relief under section 7 of the Act of 
     February 8, 1887 (25 U.S.C. 381), or other applicable law.
       (6) Authority.--The Secretary shall have the authority to 
     protect the rights of allottees as specified in this section.
       (e) Authority of Tribe.--
       (1) In general.--Except as provided in paragraph (2), the 
     Tribe shall have authority to allocate, distribute, and lease 
     the tribal water rights--
       (A) in accordance with the Compact; and
       (B) subject to approval of the Secretary of the tribal 
     water code under subsection (f)(3)(B).
       (2) Leases by allottees.--Notwithstanding paragraph (1), an 
     allottee may lease any interest in land held by the allottee, 
     together with any water right determined to be appurtenant to 
     the interest in land.
       (f) Tribal Water Code.--
       (1) In general.--Notwithstanding the time period set forth 
     in article IV(A)(2)(b) of the Compact, not later than 3 years 
     after the date on which the Tribe ratifies the Compact as set 
     forth in section 410(e)(1)(E), the Tribe shall enact a tribal 
     water code, that provides for--
       (A) the management, regulation, and governance of all uses 
     of the tribal water rights in accordance with the Compact; 
     and
       (B) establishment by the Tribe of conditions, permit 
     requirements, and other limitations relating to the storage, 
     recovery, and use of the tribal water rights in accordance 
     with the Compact.
       (2) Inclusions.--Subject to the approval of the Secretary, 
     the tribal water code shall provide that--
       (A) tribal allocations of water to allottees shall be 
     satisfied with water from the tribal water rights;
       (B) charges for delivery of water for irrigation purposes 
     for allottees shall be assessed on a just and equitable 
     basis;
       (C) there is a process by which an allottee may request 
     that the Tribe provide water for irrigation use in accordance 
     with this title;
       (D) there is a due process system for the consideration and 
     determination by the Tribe of any request by an allottee, or 
     any successor in interest to an allottee, for an allocation 
     of such water for irrigation purposes on allotted land, 
     including a process for--
       (i) appeal and adjudication of any denied or disputed 
     distribution of water; and
       (ii) resolution of any contested administrative decision; 
     and
       (E) there is a requirement that any allottee with a claim 
     relating to the enforcement of rights of the allottee under 
     the tribal water code or relating to the amount of water 
     allocated to land of the allottee must first exhaust remedies 
     available to the allottee under tribal law and the tribal 
     water code before initiating an action against the United 
     States or petitioning the Secretary pursuant to subsection 
     (d)(6).
       (3) Action by secretary.--
       (A) In general.--The Secretary shall administer the tribal 
     water rights until the tribal water code is enacted in 
     accordance with paragraph (1) and those provisions requiring 
     approval pursuant to paragraph (2).
       (B) Approval.--The tribal water code shall not be valid 
     unless--
       (i) the provisions of the tribal water code required by 
     paragraph (2) are approved by the Secretary; and
       (ii) each amendment to the tribal water code that affects a 
     right of an allottee is approved by the Secretary.
       (C) Approval period.--The Secretary shall approve or 
     disapprove the tribal water code within a reasonable period 
     of time after the date on which the Tribe submits it to the 
     Secretary.
       (g) Effect.--Except as otherwise specifically provided in 
     this section, nothing in this title--
       (1) authorizes any action by an allottee against any 
     individual or entity, or against the Tribe, under Federal, 
     State, tribal, or local law; or
       (2) alters or affects the status of any action pursuant to 
     section 1491(a) of title 28, United States Code.

     SEC. 408. STORAGE ALLOCATION FROM BIGHORN LAKE.

       (a) Storage Allocation to Tribe.--
       (1) In general.--As described in and subject to article 
     III(A)(1)(b) of the Compact, the Secretary shall allocate to 
     the Tribe 300,000 acre-feet per year of water stored in 
     Bighorn Lake, Yellowtail Unit, Lower Bighorn Division, Pick 
     Sloan Missouri Basin Program, Montana, under a water right 
     held by the United States and managed by the Bureau of 
     Reclamation, as measured at the outlet works of Yellowtail 
     Dam, including--
       (A) not more than 150,000 acre-feet per year of the 
     allocation, which may be used in addition to the natural flow 
     right described in article III(A)(1)(a) of the Compact; and
       (B) 150,000 acre-feet per year of the allocation, which may 
     be used only as supplemental water for the natural flow right 
     described in article III(A)(1)(a) of the Compact for use in 
     times of natural flow shortage.
       (2) Treatment.--
       (A) In general.--The allocation under paragraph (1) shall 
     be considered to be part of the tribal water rights.
       (B) Priority date.--The priority date of the allocation 
     under paragraph (1) shall be the priority date of the water 
     right held by the Bureau of Reclamation.
       (C) Administration.--
       (i) In general.--The Tribe shall administer the water 
     allocated under paragraph (1) in accordance with the Compact.
       (ii) Temporary transfer.--In accordance with subsection 
     (c), the Tribe may temporarily transfer by service contract, 
     lease, exchange, or other agreement, not more than 50,000 
     acre-feet of water allocated under paragraph (1)(A) off the 
     Reservation, subject to the approval of the Secretary and the 
     requirements of the Compact.
       (b) Allocation Agreement.--
       (1) In general.--As a condition of receiving an allocation 
     under this section, the Tribe shall enter into an allocation 
     agreement with the Secretary to establish the terms and 
     conditions of the allocation, in accordance with the terms 
     and conditions of the Compact and this title.
       (2) Inclusions.--The allocation agreement under paragraph 
     (1) shall include, among other things, a provision that--
       (A) the agreement is without limit as to term;
       (B) the Tribe, and not the United States, shall be entitled 
     to all consideration due to the Tribe under any lease, 
     contract, or agreement the Tribe may enter into pursuant to 
     the authority in subsection (c);
       (C) the United States shall have no trust obligation or 
     other obligation to monitor, administer, or account for--
       (i) any funds received by the Tribe as consideration under 
     any lease, contract, or agreement the Tribe may enter into 
     pursuant to the authority in subsection (c); or
       (ii) the expenditure of such funds;
       (D) if the facilities at Yellowtail Dam are significantly 
     reduced or are anticipated to be significantly reduced for an 
     extended period of time, the Tribe shall have the same 
     storage rights as other storage contractors with respect to 
     the allocation under this section;
       (E) the costs associated with the construction of the 
     storage facilities at Yellowtail Dam allocable to the Tribe--
       (i) shall be nonreimbursable; and
       (ii) shall be excluded from any repayment obligation of the 
     Tribe;
       (F) no water service capital charges shall be due or 
     payable for any water allocated to the Tribe pursuant to this 
     title and the allocation agreement, regardless of whether 
     that water is delivered for use by the Tribe or is delivered 
     under any leases, contracts, or agreements the Tribe may 
     enter into pursuant to the authority in subsection (c);
       (G) the Tribe shall not be required to make payments to the 
     United States for any water allocated to the Tribe pursuant 
     to this title and the allocation agreement except for each 
     acre-foot of stored water leased or sold for industrial 
     purposes; and
       (H) for each acre-foot of stored water leased or sold by 
     the Tribe for industrial purposes--
       (i) the Tribe shall pay annually to the United States an 
     amount to cover the proportionate share of the annual 
     operation, maintenance, and replacement costs for the 
     Yellowtail Unit allocable to the amount of water for 
     industrial purposes leased or sold by the Tribe; and
       (ii) the annual payments of the Tribe shall be reviewed and 
     adjusted, as appropriate, to reflect the actual operation, 
     maintenance, and replacement costs for the Yellowtail Unit.
       (c) Temporary Transfer for Use Off Reservation.--
       (1) In general.--Notwithstanding any other provision of 
     statutory or common law and subject to paragraph (2), on 
     approval of the Secretary and subject to the terms and 
     conditions of the Compact, the Tribe may enter into a service 
     contract, lease, exchange, or other agreement providing for 
     the temporary delivery, use, or transfer of not more than 
     50,000 acre-feet per year of water allocated under subsection 
     (a)(1)(A) for use off the Reservation.
       (2) Requirement.--An agreement under paragraph (1) shall 
     not permanently alienate any portion of the water allocated 
     under subsection (a)(1)(A).
       (d) Remaining Storage.--
       (1) In general.--As of the date of enactment of this Act, 
     water in Bighorn Lake shall be considered to be fully 
     allocated and

[[Page S8157]]

     no further storage allocations shall be made by the 
     Secretary.
       (2) Effect of subsection.--Nothing in this subsection 
     prevents the Secretary from--
       (A) renewing the storage contract with Pennsylvania Power 
     and Light Company consistent with the allocation to 
     Pennsylvania Power and Light Company in existence on the date 
     of enactment of this Act; or
       (B) entering into future agreements with either the 
     Northern Cheyenne Tribe or the Crow Tribe facilitating either 
     tribe's use of its respective allocation of water from 
     Bighorn Lake.

     SEC. 409. SATISFACTION OF CLAIMS.

       (a) In General.--
       (1) Satisfaction of tribal claims.--The benefits realized 
     by the Tribe under this title shall be in complete 
     replacement of and substitution for, and full satisfaction 
     of, all claims of the Tribe against the United States under 
     paragraphs (1) and (3) of section 410(a).
       (2) Satisfaction of allottee claims.--The benefits realized 
     by the allottees under this title shall be in complete 
     replacement of and substitution for, and full satisfaction 
     of--
       (A) all claims waived and released under section 410(a)(2); 
     and
       (B) any claims of the allottees against the United States 
     that the allottees have or could have asserted that are 
     similar in nature to those described in section 410(a)(3).
       (b) Satisfaction of Claims Relating to Crow Irrigation 
     Project.--
       (1) In general.--Subject to paragraph (3), the funds made 
     available under subsections (a) and (f) of section 414 shall 
     be used to satisfy any claim of the Tribe or the allottees 
     with respect to the appropriation of funds for the 
     rehabilitation, expansion, improvement, repair, operation, or 
     maintenance of the Crow Irrigation Project.
       (2) Satisfaction of claims.--Upon complete transfer of the 
     funds described in subsections (a) and (f) of section 414 any 
     claim of the Tribe or the allottees with respect to the 
     transfer of funds for the rehabilitation, expansion, 
     improvement, repair, operation, or maintenance of the Crow 
     Irrigation Project shall be deemed to have been satisfied.
       (3) Effect.--Except as provided in section 405, nothing in 
     this title affects any applicable law (including regulations) 
     under which the United States collects irrigation assessments 
     from--
       (A) non-Indian users of the Crow Irrigation Project; and
       (B) the Tribe, tribal entities and instrumentalities, 
     tribal members, allottees, and entities owned by the Tribe, 
     tribal members, or allottees, to the extent that annual 
     irrigation assessments on such tribal water users exceed the 
     amount of funds available under section 411(e)(3)(D) for 
     costs relating to CIP OM&R.
       (c) No Recognition of Water Rights.--Notwithstanding 
     subsection (a) and except as provided in section 407, nothing 
     in this title recognizes or establishes any right of a member 
     of the Tribe or an allottee to water within the Reservation 
     or the ceded strip.

     SEC. 410. WAIVERS AND RELEASES OF CLAIMS.

       (a) In General.--
       (1) Waiver and release of claims by the tribe and the 
     united states acting in its capacity as trustee for the 
     tribe.--Subject to the retention of rights set forth in 
     subsection (c), in return for recognition of the tribal water 
     rights and other benefits as set forth in the Compact and 
     this title, the Tribe, on behalf of itself and the members of 
     the Tribe (but not tribal members in their capacities as 
     allottees), and the United States, acting as trustee for the 
     Tribe and the members of the Tribe (but not tribal members in 
     their capacities as allottees), are authorized and directed 
     to execute a waiver and release of all claims for water 
     rights within the State of Montana that the Tribe, or the 
     United States acting as trustee for the Tribe, asserted, or 
     could have asserted, in any proceeding, including the State 
     of Montana stream adjudication, prior to and including the 
     enforceability date, except to the extent that such rights 
     are recognized in the Compact or this title.
       (2) Waiver and release of claims by the united states 
     acting in its capacity as trustee for allottees.--Subject to 
     the retention of rights set forth in subsection (c), in 
     return for recognition of the water rights of the Tribe and 
     other benefits as set forth in the Compact and this title, 
     the United States, acting as trustee for allottees, is 
     authorized and directed to execute a waiver and release of 
     all claims for water rights within the Reservation and the 
     ceded strip that the United States, acting as trustee for the 
     allottees, asserted, or could have asserted, in any 
     proceeding, including the State of Montana stream 
     adjudication, prior to and including the enforceability date, 
     except to the extent that such rights are recognized in the 
     Compact or this title.
       (3) Waiver and release of claims by the tribe against the 
     united states.--Subject to the retention of rights set forth 
     in subsection (c), the Tribe, on behalf of itself and the 
     members of the Tribe (but not Tribal members in their 
     capacities as allottees), is authorized to execute a waiver 
     and release of--
       (A) all claims against the United States, including the 
     agencies and employees of the United States, relating to 
     claims for water rights within the State of Montana that the 
     United States, acting as trustee for the Tribe, asserted, or 
     could have asserted, in any proceeding, including the State 
     of Montana stream adjudication, except to the extent that 
     such rights are recognized as tribal water rights in this 
     title, including all claims relating in any manner to the 
     claims reserved against the United States or agencies or 
     employees of the United States in section 4(e) of the joint 
     stipulation of settlement;
       (B) all claims against the United States, including the 
     agencies and employees of the United States, relating to 
     damages, losses, or injuries to water, water rights, land, or 
     natural resources due to loss of water or water rights 
     (including damages, losses, or injuries to hunting, fishing, 
     gathering, or cultural rights due to loss of water or water 
     rights, claims relating to interference with, diversion or 
     taking of water, or claims relating to failure to protect, 
     acquire, replace, or develop water, water rights, or water 
     infrastructure) within the State of Montana that first 
     accrued at any time prior to and including the enforceability 
     date, including all claims relating to the failure to 
     establish or provide a municipal rural or industrial water 
     delivery system on the Reservation and all claims relating to 
     the failure to provide for, operate, or maintain the Crow 
     Irrigation Project, or any other irrigation system or 
     irrigation project on the Reservation;
       (C) all claims against the United States, including the 
     agencies and employees of the United States, relating to the 
     pending litigation of claims relating to the water rights of 
     the Tribe in the State of Montana;
       (D) all claims against the United States, including the 
     agencies and employees of the United States, relating to the 
     negotiation, execution, or the adoption of the Compact 
     (including exhibits) or this title;
       (E) subject to the retention of rights set forth in 
     subsection (c), all claims for monetary damages against the 
     United States that first accrued at any time prior to and 
     including the enforceability date with respect to--
       (i) the failure to recognize or enforce the claim of the 
     Tribe of title to land created by the movement of the Bighorn 
     River; and
       (ii) the failure to make productive use of that land 
     created by the movement of the Bighorn River to which the 
     Tribe has claimed title;
       (F) all claims against the United States that first accrued 
     at any time prior to and including the enforceability date 
     arising from the taking or acquisition of the land of the 
     Tribe or resources for the construction of the Yellowtail 
     Dam;
       (G) all claims against the United States that first accrued 
     at any time prior to and including the enforceability date 
     relating to the construction and operation of Yellowtail Dam 
     and the management of Bighorn Lake; and
       (H) all claims that first accrued at any time prior to and 
     including the enforceability date relating to the generation, 
     or the lack thereof, of power from Yellowtail Dam.
       (b) Effectiveness of Waivers and Releases.--The waivers 
     under subsection (a) shall take effect on the enforceability 
     date.
       (c) Reservation of Rights and Retention of Claims.--
     Notwithstanding the waivers and releases authorized in this 
     title, the Tribe on behalf of itself and the members of the 
     Tribe and the United States, acting as trustee for the Tribe 
     and allottees, retain--
       (1) all claims for enforcement of the Compact, any final 
     decree, or this title;
       (2) all rights to use and protect water rights acquired 
     after the date of enactment of this Act;
       (3) all claims relating to activities affecting the quality 
     of water, including any claims the Tribe may have under--
       (A) the Comprehensive Environmental Response, Compensation, 
     and Liability Act of 1980 (42 U.S.C. 9601 et seq.), including 
     for damages to natural resources;
       (B) the Safe Drinking Water Act (42 U.S.C. 300f et seq.);
       (C) the Federal Water Pollution Control Act (33 U.S.C. 1251 
     et seq.); and
       (D) any regulations implementing the Acts described in 
     subparagraphs (A) through (C);
       (4) all claims relating to damages, losses, or injuries to 
     land or natural resources not due to loss of water or water 
     rights (including hunting, fishing, gathering, or cultural 
     rights);
       (5) all rights, remedies, privileges, immunities, and 
     powers not specifically waived and released pursuant to this 
     title or article VII(E) of the Compact;
       (6) all claims against any person or entity other than the 
     United States, including claims for monetary damages, with 
     respect to--
       (A) the claim of the Tribe of title to land created by the 
     movement of the Bighorn River; and
       (B) the productive use of that land created by the movement 
     of the Bighorn River to which the Tribe has claimed title; 
     and
       (7) all claims that first accrued after the enforceability 
     date with respect to claims otherwise waived in accordance 
     with subparagraphs (B) and (E) through (H) of subsection 
     (a)(3).
       (d) Effect of Compact and Title.--Nothing in the Compact or 
     this title--
       (1) affects the ability of the United States, acting as 
     sovereign, to take actions authorized by law, including any 
     laws relating to health, safety, or the environment, 
     including--
       (A) the Comprehensive Environmental Response, Compensation, 
     and Liability Act of 1980 (42 U.S.C. 9601 et seq.);
       (B) the Safe Drinking Water Act (42 U.S.C. 300f et seq.);

[[Page S8158]]

       (C) the Federal Water Pollution Control Act (33 U.S.C. 1251 
     et seq.); and
       (D) any regulations implementing the Acts described in 
     subparagraphs (A) through (C);
       (2) affects the ability of the United States to take 
     actions acting as trustee for any other Indian tribe or 
     allottee of any other Indian tribe;
       (3) confers jurisdiction on any State court--
       (A) to interpret Federal law regarding health, safety, or 
     the environment;
       (B) to determine the duties of the United States or other 
     parties pursuant to Federal law regarding health, safety, or 
     the environment; or
       (C) to conduct judicial review of Federal agency action;
       (4) waives any claim of a member of the Tribe in an 
     individual capacity that does not derive from a right of the 
     Tribe; or
       (5) revives any claims waived by the Tribe in the joint 
     stipulation of settlement.
       (e) Enforceability Date.--
       (1) In general.--The enforceability date shall be the date 
     on which the Secretary publishes in the Federal Register a 
     statement of findings that--
       (A)(i) the Montana Water Court has issued a final judgment 
     and decree approving the Compact; or
       (ii) if the Montana Water Court is found to lack 
     jurisdiction, the district court of jurisdiction has approved 
     the Compact as a consent decree and such approval is final;
       (B) all of the funds made available under subsections (c) 
     through (f) of section 414 have been deposited in the Fund;
       (C) the Secretary has executed the agreements with the 
     Tribe required by sections 405(a) and 406(a);
       (D) the State of Montana has appropriated and paid into an 
     interest-bearing escrow account any payments due as of the 
     date of enactment of this Act to the Tribe under the Compact;
       (E)(i) the Tribe has ratified the Compact by submitting 
     this title and the Compact to a vote by the tribal membership 
     for approval or disapproval; and
       (ii) the tribal membership has voted to approve this title 
     and the Compact by a majority of votes cast on the day of the 
     vote, as certified by the Secretary and the Tribe;
       (F) the Secretary has fulfilled the requirements of section 
     408(a); and
       (G) the waivers and releases authorized and set forth in 
     subsection (a) have been executed by the Tribe and the 
     Secretary.
       (f) Tolling of Claims.--
       (1) In general.--Each applicable period of limitation and 
     time-based equitable defense relating to a claim described in 
     this section shall be tolled for the period beginning on the 
     date of enactment of this Act and ending on the date on which 
     the amounts made available to carry out this title are 
     transferred to the Secretary.
       (2) Effect of subsection.--Nothing in this subsection 
     revives any claim or tolls any period of limitation or time-
     based equitable defense that expired before the date of 
     enactment of this Act.
       (g) Expiration and Tolling.--In the event that all 
     appropriations authorized by this Act have not been made 
     available to the Secretary by June 30, 2030--
       (1) the waivers authorized in this section shall expire and 
     be of no further force or effect; and
       (2) all statutes of limitations applicable to any claim 
     otherwise waived shall be tolled until June 30, 2030.
       (h) Voiding of Waivers.--If the waivers pursuant to this 
     section are void under subsection (g)--
       (1) the United States' approval of the Compact under 
     section 404 shall no longer be effective;
       (2) any unexpended Federal funds appropriated or made 
     available to carry out the activities authorized in this Act, 
     together with any interest earned on those funds, and any 
     water rights or contracts to use water and title to other 
     property acquired or constructed with Federal funds 
     appropriated or made available to carry out the activities 
     authorized in this Act shall be returned to the Federal 
     Government, unless otherwise agreed to by the Tribe and the 
     United States and approved by Congress; and
       (3) except for Federal funds used to acquire or develop 
     property that is returned to the Federal Government under 
     paragraph (2), the United States shall be entitled to set off 
     any Federal funds appropriated or made available to carry out 
     the activities authorized in this Act that were expended or 
     withdrawn, together with any interest accrued, against any 
     claims against the United States relating to water rights in 
     the State of Montana asserted by the Tribe or in any future 
     settlement of the water rights of the Crow Tribe.

     SEC. 411. CROW SETTLEMENT FUND.

       (a) Establishment.--There is established in the Treasury of 
     the United States a fund to be known as ``the Crow Settlement 
     Fund'', to be administered by the Secretary for the purpose 
     of carrying out this title.
       (b) Transfers to Fund.--The Fund shall consist of such 
     amounts as are deposited in the Fund under subsections (c) 
     through (h) of section 414.
       (c) Accounts of Crow Settlement Fund.--The Secretary shall 
     establish in the Fund the following accounts:
       (1) The Tribal Compact Administration account, consisting 
     of amounts made available pursuant to section 414(c).
       (2) The Energy Development Projects account, consisting of 
     amounts made available pursuant to section 414(d).
       (3) The MR&I System OM&R Account, consisting of amounts 
     made available pursuant to section 414(e).
       (4) The CIP OM&R Account, consisting of amounts made 
     available pursuant to section 414(f).
       (d) Deposits to Crow Settlement Fund.--
       (1) In general.--The Secretary of the Treasury shall 
     promptly deposit in the Fund any amounts appropriated for 
     that purpose.
       (2) Priority of deposits to accounts.--Of the amounts 
     appropriated for deposit in the Fund, the Secretary of the 
     Treasury shall deposit amounts in the accounts listed in 
     subsection (c)--
       (A) in full; and
       (B) in the order listed in subsection (c).
       (e) Management.--
       (1) In general.--The Secretary shall manage the Fund, make 
     investments from the Fund, and make amounts available from 
     the Fund for distribution to the Tribe consistent with the 
     American Indian Trust Fund Management Reform Act of 1994 (25 
     U.S.C. 4001 et seq.).
       (2) Investment of crow settlement fund.--Beginning on the 
     enforceability date, the Secretary shall invest amounts in 
     the Fund in accordance with--
       (A) the Act of April 1, 1880 (25 U.S.C. 161);
       (B) the first section of the Act of June 24, 1938 (25 
     U.S.C. 162a); and
       (C) the obligations of Federal corporations and Federal 
     Government-sponsored entities, the charter documents of which 
     provide that the obligations of the entities are lawful 
     investments for federally managed funds, including--
       (i) the obligations of the United States Postal Service 
     described in section 2005 of title 39, United States Code;
       (ii) bonds and other obligations of the Tennessee Valley 
     Authority described in section 15d of the Tennessee Valley 
     Authority Act of 1933 (16 U.S.C. 831n-4);
       (iii) mortgages, obligations, and other securities of the 
     Federal Home Loan Mortgage Corporation described in section 
     303 of the Federal Home Loan Mortgage Corporation Act (12 
     U.S.C. 1452); and
       (iv) bonds, notes, and debentures of the Commodity Credit 
     Corporation described in section 4 of the Act of March 8, 
     1938 (15 U.S.C. 713a-4).
       (3) Distributions from crow settlement fund.--
       (A) In general.--Amounts from the Fund shall be used for 
     each purpose described in subparagraphs (B) through (E).
       (B) Tribal compact administration account.--The Tribal 
     Compact Administration account shall be used for expenditures 
     by the Tribe for Tribal Compact Administration.
       (C) Energy development projects account.--The Energy 
     Development Projects account shall be used for expenditures 
     by the Tribe for the following types of energy development on 
     the Reservation, the ceded strip, and land owned by the 
     Tribe:
       (i) Development and marketing of power generation on the 
     Yellowtail Afterbay Dam authorized in section 412(b).
       (ii) Development of clean coal conversion projects.
       (iii) Renewable energy projects other than the project 
     described in clause (i).
       (D) CIP om&r account.--
       (i) In general.--Amounts in the CIP OM&R Account shall be 
     used for CIP OM&R costs.
       (ii) Reduction of costs to tribal water users.--

       (I) In general.--Subject to subclause (II), the funds 
     described in clause (i) shall be used to reduce the CIP OM&R 
     costs to all tribal water users on a proportional basis for a 
     given year.
       (II) Limitation on use of funds.--Funds in the CIP OM&R 
     Account shall be used to pay irrigation assessments only for 
     the Tribe, tribal entities and instrumentalities, tribal 
     members, allottees, and entities owned by the Tribe, tribal 
     members, or allottees.

       (E) MR&I system om&r account.--Funds from the MR&I System 
     OM&R Account shall be used to assist the Tribe in paying MR&I 
     System OM&R costs.
       (4) Withdrawals by tribe.--
       (A) In general.--The Tribe may withdraw any portion of 
     amounts in the Fund on approval by the Secretary of a tribal 
     management plan in accordance with the American Indian Trust 
     Fund Management Reform Act of 1994 (25 U.S.C. 4001 et seq.).
       (B) Requirements.--
       (i) In general.--In addition to the requirements under the 
     American Indian Trust Fund Management Reform Act of 1994 (25 
     U.S.C. 4001 et seq.), the tribal management plan of the Tribe 
     under subparagraph (A) shall require that the Tribe spend any 
     amounts withdrawn from the Fund in accordance with this 
     title.
       (ii) Enforcement.--The Secretary may carry out such 
     judicial or administrative actions as the Secretary 
     determines to be necessary to enforce a tribal management 
     plan to ensure that amounts withdrawn by the Tribe from the 
     Fund under this paragraph are used in accordance with this 
     title.
       (C) Liability.--The Secretary and the Secretary of the 
     Treasury shall not be liable for the expenditure or 
     investment of amounts withdrawn from the Fund by the Tribe 
     under this paragraph.
       (D) Expenditure plan.--
       (i) In general.--For each fiscal year, the Tribe shall 
     submit to the Secretary for approval an expenditure plan for 
     any portion of

[[Page S8159]]

     the amounts described in subparagraph (A) that the Tribe 
     elects not to withdraw under this paragraph during the fiscal 
     year.
       (ii) Inclusion.--An expenditure plan under clause (i) shall 
     include a description of the manner in which, and the 
     purposes for which, amounts of the Tribe remaining in the 
     Fund will be used during subsequent fiscal years.
       (iii) Approval.--On receipt of an expenditure plan under 
     clause (i), the Secretary shall approve the plan if the 
     Secretary determines that the plan is--

       (I) reasonable; and
       (II) consistent with this title.

       (5) Annual reports.--The Tribe shall submit to the 
     Secretary annual reports describing each expenditure by the 
     Tribe of amounts in the Fund during the preceding calendar 
     year.
       (6) Certain per capita distributions prohibited.--No amount 
     in the Fund shall be distributed to any member of the Tribe 
     on a per capita basis.
       (f) Availability.--
       (1) In general.--Except as provided in paragraph (2), the 
     amounts in the Fund shall be available for use by the 
     Secretary and withdrawal by the Tribe beginning on the 
     enforceability date.
       (2) Exception.--The amounts made available under section 
     414(c) shall be available for use by the Secretary and 
     withdrawal by the Tribe beginning on the date on which the 
     Tribe ratifies the Compact as provided in section 
     410(e)(1)(E).
       (g) State Contribution.--The State of Montana contribution 
     to the Fund shall be provided in accordance with article 
     VI(A) of the Compact.
       (h) Separate Appropriations Account.--Section 1105(a) of 
     title 31, United States Code, is amended--
       (1) by redesignating paragraphs (35) and (36) as paragraphs 
     (36) and (37), respectively;
       (2) by redesignating the second paragraph (33) (relating to 
     obligational authority and outlays requested for homeland 
     security) as paragraph (35); and
       (3) by adding at the end the following:
       ``(38) a separate statement for the Crow Settlement Fund 
     established under section 411 of the Crow Tribe Water Rights 
     Settlement Act of 2010, which shall include the estimated 
     amount of deposits into the Fund, obligations, and outlays 
     from the Fund.''.

     SEC. 412. YELLOWTAIL DAM, MONTANA.

       (a) Streamflow and Lake Level Management Plan.--
       (1) In general.--Nothing in this title, the Compact, or the 
     Streamflow and Lake Level Management Plan referred to in 
     article III(A)(7) of the Compact--
       (A) limits the discretion of the Secretary under the 
     section 4F of that plan; or
       (B) requires the Secretary to give priority to any factor 
     described in section 4F of that plan over any other factor 
     described in that section.
       (2) Bighorn lake management.--Bighorn Lake water 
     management, including the Streamflow and Lake Level 
     Management Plan, is a Federal activity, and the review and 
     enforcement of any water management decisions relating to 
     Bighorn Lake shall be as provided by Federal law.
       (3) Applicability of paragraphs (1) and (2).--The 
     Streamflow and Lake Level Management Plan referred to in and 
     part of the Compact shall be interpreted to clearly reflect 
     paragraphs (1) and (2).
       (4) Applicability of instream flow requirements in plan.--
     Notwithstanding any term (including any defined term) or 
     provision in the Streamflow and Lake Level Management Plan, 
     for purposes of this title, the Compact, and the Streamflow 
     and Lake Level Management Plan, any requirement in the 
     Streamflow and Lake Level Management Plan that the Tribe 
     dedicate a specified percentage, portion, or number of acre-
     feet of water per year of the tribal water rights to instream 
     flow means (and is limited in meaning and effect to) an 
     obligation on the part of the Tribe to withhold from 
     development or otherwise refrain from diverting or removing 
     from the Bighorn River the specified quantity of water for 
     the duration, at the locations, and under the conditions set 
     forth in the applicable requirement.
       (b) Power Generation.--
       (1) In general.--Notwithstanding any other provision of 
     law, the Tribe shall have the exclusive right to develop and 
     market power generation on the Yellowtail Afterbay Dam, 
     provided that this exclusive right shall expire 15 years 
     after the date of enactment of this Act if construction has 
     not been substantially completed on the power generation 
     project of the Tribe.
       (2) Bureau of reclamation cooperation.--The Bureau of 
     Reclamation shall cooperate with the Tribe on the development 
     of any power generation project under this subsection.
       (3) Agreement.--Before construction of a power generation 
     project under this subsection, the Tribe shall enter into an 
     agreement with the Bureau of Reclamation that contains 
     provisions that--
       (A) allocate the responsibilities for the design, 
     construction, and operations of the project;
       (B) assure the compatibility of the power generation 
     project with the operations of the Yellowtail Unit and the 
     Yellowtail Afterbay Dam, which shall include entering into 
     agreements--
       (i) regarding operating criteria and emergency procedures, 
     as they relate to dam safety; and
       (ii) under which, should the Tribe propose any 
     modifications to facilities owned by the Bureau of 
     Reclamation, the proposed modifications shall be subject to 
     review and approval by the Secretary, acting through the 
     Bureau of Reclamation;
       (C) beginning 10 years after the date on which the Tribe 
     begins marketing power generated from the Yellowtail Afterbay 
     Dam, the Tribe shall make annual payments for operation, 
     maintenance, and replacement costs in amounts determined in 
     accordance with the guidelines and methods of the Bureau of 
     Reclamation for assessing operation, maintenance, and 
     replacement charges, provided that such annual payments shall 
     not exceed 3 percent of gross annual revenue produced by the 
     sale of electricity generated by such project; and
       (D) the Secretary--
       (i) shall review the charges established in the agreement 
     on the date that is 5 years after the date on which the Tribe 
     makes the first payment described in subparagraph (C) to the 
     Secretary under the agreement and at 5 year intervals 
     thereafter; and
       (ii) may increase or decrease the charges in proportion to 
     the amount of any increase or decrease in the costs of 
     operation, maintenance, and replacement for the Yellowtail 
     Afterbay Dam, provided that any increase in operation, 
     maintenance, and replacement costs assessed to the Tribe may 
     not exceed--

       (I) 5 percent in any 5 year period; and
       (II) 3 percent of the gross annual revenue produced by the 
     sale of electricity generated by such project.

       (4) Use of power by tribe.--Any hydroelectric power 
     generated in accordance with this subsection shall be used or 
     marketed by the Tribe.
       (5) Revenues.--The Tribe shall retain any revenues from the 
     sale of hydroelectric power generated by a project under this 
     subsection.
       (6) Liability of united states.--The United States shall 
     have no trust obligation to monitor, administer, or account 
     for--
       (A) the revenues received by the Tribe under this 
     subsection; or
       (B) the expenditure of the revenues received by the Tribe 
     under this subsection.
       (c) Consultation With Tribe.--The Bureau of Reclamation 
     shall consult with the Tribe on at least a quarterly basis on 
     all issues relating to the management of Yellowtail Dam by 
     the Bureau of Reclamation.
       (d) Amendments to Compact and Plan.--The provisions of 
     subsection (a) apply to any amendment to--
       (1) the Compact; or
       (2) the Streamflow and Lake Level Management Plan.

     SEC. 413. MISCELLANEOUS PROVISIONS.

       (a) Waiver of Sovereign Immunity by the United States.--
     Except as provided in subsections (a) through (c) of section 
     208 of the Department of Justice Appropriation Act, 1953 (43 
     U.S.C. 666), nothing in this title waives the sovereign 
     immunity of the United States.
       (b) Other Tribes Not Adversely Affected.--Nothing in this 
     title quantifies or diminishes any land or water right, or 
     any claim or entitlement to land or water, of an Indian 
     tribe, band, or community other than the Tribe.
       (c) Limitation on Claims for Reimbursement.--With respect 
     to Indian land within the Reservation or the ceded strip--
       (1) the United States shall not submit against any Indian-
     owned land located within the Reservation or the ceded strip 
     any claim for reimbursement of the cost to the United States 
     of carrying out this title and the Compact; and
       (2) no assessment of any Indian-owned land located within 
     the Reservation or the ceded strip shall be made regarding 
     that cost.
       (d) Limitation on Liability of United States.--
       (1) In general.--The United States has no trust or other 
     obligation--
       (A) to monitor, administer, or account for, in any manner, 
     any funds provided to the Tribe by any party to the Compact 
     other than the United States; or
       (B) to review or approve any expenditure of those funds.
       (2) Indemnification.--The Tribe shall indemnify the United 
     States, and hold the United States harmless, with respect to 
     all claims (including claims for takings or breach of trust) 
     arising from the receipt or expenditure of amounts described 
     in paragraph (1)(A).
       (e) Effect on Current Law.--Nothing in this section affects 
     any provision of law (including regulations) in effect on the 
     day before the date of enactment of this Act with respect to 
     preenforcement review of any Federal environmental 
     enforcement action.
       (f) Limitations on Effect.--
       (1) In general.--Nothing in this title, the Compact, or the 
     Streamflow and Lake Level Management Plan referred to in 
     article III(A)(7) of the Compact--
       (A) limits, expands, alters, or otherwise affects--
       (i) the meaning, interpretation, implementation, 
     application, or effect of any article, provision, or term of 
     the Yellowstone River Compact;
       (ii) any right, requirement, or obligation under the 
     Yellowstone River Compact;
       (iii) any allocation (or manner of determining any 
     allocation) of water under the Yellowstone River Compact; or
       (iv) any present or future claim, defense, or other 
     position asserted in any legal, administrative, or other 
     proceeding arising under or

[[Page S8160]]

     relating to the Yellowstone River Compact (including the 
     original proceeding between the State of Montana and the 
     State of Wyoming pending as of the date of enactment of this 
     Act before the United States Supreme Court);
       (B) makes an allocation or apportionment of water between 
     or among States;
       (C) addresses or implies whether, how, or to what extent 
     (if any)--
       (i) the tribal water rights, or any portion of the tribal 
     water rights, should be accounted for as part of or otherwise 
     charged against any allocation of water made to a State under 
     the provisions of the Yellowstone River Compact; or
       (ii) the Yellowstone River Compact includes the tribal 
     water rights or the water right of any Indian tribe as part 
     of any allocation or other disposition of water under that 
     compact; or
       (D) waives the sovereign immunity from suit of any State 
     under the Eleventh Amendment to the Constitution of the 
     United States, except as expressly authorized in Article 
     IV(F)(8) of the Compact.
       (2) Effect of certain provisions in compact.--The 
     provisions in paragraphs (1) and (2) of article III 
     (A)(6)(a), paragraphs (1) and (2) of article III(B)(6)(a), 
     paragraphs (1) and (2) of article III(E)(6)(a), and 
     paragraphs (1) and (2) of article III (F)(6)(a) of the 
     Compact that provide protections to certain water rights 
     recognized under the laws of the State of Montana do not 
     affect in any way, either directly or indirectly, existing or 
     future water rights (including the exercise of any such 
     rights) outside of the State of Montana.
       (g) Effect on Reclamation Law.--The activities carried out 
     by the Bureau of Reclamation under this title shall not 
     establish a precedent or impact the authority provided under 
     any other provision of Federal reclamation law, including--
       (1) the Rural Supply Act of 2006 (Public Law 109-451; 120 
     Stat. 3345); and
       (2) the Omnibus Public Land Management Act of 2009 (Public 
     Law 111-11; 123 Stat. 991).

     SEC. 414. FUNDING.

       (a) Rehabilitation and Improvement of Crow Irrigation 
     Project.--
       (1) Mandatory appropriation.--Out of any funds in the 
     Treasury not otherwise appropriated, the Secretary of the 
     Treasury shall transfer to the Secretary $73,843,000, 
     adjusted to reflect changes since May 1, 2008, in 
     construction cost indices applicable to the types of 
     construction involved in the rehabilitation and improvement 
     of the Crow Irrigation Project, for the rehabilitation and 
     improvement of the Crow Irrigation Project.
       (2) Authorization of appropriations.--In addition to the 
     amount made available under paragraph (1), there is 
     authorized to be appropriated to the Secretary for the 
     rehabilitation and improvement of the Crow Irrigation Project 
     $58,000,000, adjusted to reflect changes since May 1, 2008, 
     in construction cost indices applicable to the types of 
     construction involved in the rehabilitation and improvement 
     of the Crow Irrigation Project.
       (b) Design and Construction of MR&I System.--
       (1) Mandatory appropriation.--Out of any funds in the 
     Treasury not otherwise appropriated, the Secretary of the 
     Treasury shall transfer to the Secretary $146,000,000, 
     adjusted to reflect changes since May 1, 2008, in 
     construction cost indices applicable to the types of 
     construction involved in the design and construction of the 
     MR&I System, for the design and construction of the MR&I 
     System.
       (2) Authorization of appropriations.--In addition to the 
     amount made available under paragraph (1), there is 
     authorized to be appropriated to the Secretary for the design 
     and construction of the MR&I System $100,381,000, adjusted to 
     reflect changes since May 1, 2008, in construction cost 
     indices applicable to the types of construction involved in 
     the design and construction of the MR&I System.
       (c) Tribal Compact Administration.--Out of any funds in the 
     Treasury not otherwise appropriated, the Secretary of the 
     Treasury shall transfer to the Secretary $4,776,000, adjusted 
     to reflect changes in appropriate cost indices during the 
     period beginning on the date of enactment of this Act and 
     ending on the date of the transfer, for Tribal Compact 
     Administration.
       (d) Energy Development Projects.--Out of any funds in the 
     Treasury not otherwise appropriated, the Secretary of the 
     Treasury shall transfer to the Secretary $20,000,000, 
     adjusted to reflect changes in appropriate cost indices 
     during the period beginning on the date of enactment of this 
     Act and ending on the date of the transfer, for Energy 
     Development Projects as set forth in section 411(e)(3)(C).
       (e) MR&I System OM&R.--Out of any funds in the Treasury not 
     otherwise appropriated, the Secretary of the Treasury shall 
     transfer to the Secretary $47,000,000, adjusted to reflect 
     changes in appropriate cost indices during the period 
     beginning on the date of enactment of this Act and ending on 
     the date of the transfer, for MR&I System OM&R.
       (f) CIP OM&R.--Out of any funds in the Treasury not 
     otherwise appropriated, the Secretary of the Treasury shall 
     transfer to the Secretary $10,000,000, adjusted to reflect 
     changes in appropriate cost indices during the period 
     beginning on the date of enactment of this Act and ending on 
     the date of the transfer, for CIP OM&R.
       (g) Use.--In addition to the uses authorized under 
     subsections (a) and (b), such amounts as may be necessary of 
     the amounts made available under those subsections may be 
     used to carry out related activities necessary to comply with 
     Federal environmental and cultural resource laws.
       (h) Account Transfers.--
       (1) In general.--The Secretary may transfer from the 
     amounts made available under subsection (a) such amounts as 
     the Secretary, with the concurrence of the Tribe, determines 
     to be necessary to supplement the amounts made available 
     under subsection (b), on a determination of the Secretary, in 
     consultation with the Tribe, that such a transfer is in the 
     best interest of the Tribe.
       (2) Other approved transfers.--The Secretary may transfer 
     from the amounts made available under subsection (b) such 
     amounts as the Secretary, with the concurrence of the Tribe, 
     determines to be necessary to supplement the amounts made 
     available under subsection (a), on a determination of the 
     Secretary, in consultation with the Tribe, that such a 
     transfer is in the best interest of the Tribe.
       (i) Receipt and Acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under subsections (a) 
     through (f), without further appropriation.

     SEC. 415. REPEAL ON FAILURE TO MEET ENFORCEABILITY DATE.

       If the Secretary does not publish a statement of findings 
     under section 410(e) not later than March 31, 2016, or the 
     extended date agreed to by the Tribe and the Secretary, after 
     reasonable notice to the State of Montana, as applicable--
       (1) this title is repealed effective April 1, 2016, or the 
     day after the extended date agreed to by the Tribe and the 
     Secretary after reasonable notice to the State of Montana, 
     whichever is later;
       (2) any action taken by the Secretary and any contract or 
     agreement pursuant to the authority provided under any 
     provision of this title shall be void;
       (3) any amounts made available under section 414, together 
     with any interest on those amounts, shall immediately revert 
     to the general fund of the Treasury;
       (4) any amounts made available under section 414 that 
     remain unexpended shall immediately revert to the general 
     fund of the Treasury; and
       (5) the United States shall be entitled to set off against 
     any claims asserted by the Tribe against the United States 
     relating to water rights--
       (A) any funds expended or withdrawn from the amounts made 
     available pursuant to this title; and
       (B) any funds made available to carry out the activities 
     authorized in this title from other authorized sources.

     SEC. 416. ANTIDEFICIENCY.

       The United States shall not be liable for any failure to 
     carry out any obligation or activity authorized by this title 
     (including any such obligation or activity under the 
     Settlement Agreement) if adequate appropriations are not 
     provided expressly by Congress to carry out the purposes of 
     this title in the Reclamation Water Settlements Fund 
     established under section 10501 of Public Law 111-11 or the 
     ``Emergency Fund for Indian Safety and Health'' established 
     by section 601(a) of the Tom Lantos and Henry J. Hyde United 
     States Global Leadership Against HIV/AIDS, Tuberculosis, and 
     Malaria Reauthorization Act of 2008 (25 U.S.C. 443c(a)).

                TITLE V--TAOS PUEBLO INDIAN WATER RIGHTS

     SEC. 501. SHORT TITLE.

       This title may be cited as the ``Taos Pueblo Indian Water 
     Rights Settlement Act''.

     SEC. 502. PURPOSES.

       The purposes of this title are--
       (1) to approve, ratify, and confirm the Taos Pueblo Indian 
     Water Rights Settlement Agreement;
       (2) to authorize and direct the Secretary to execute the 
     Settlement Agreement and to perform all obligations of the 
     Secretary under the Settlement Agreement and this title; and
       (3) to authorize all actions and appropriations necessary 
     for the United States to meet its obligations under the 
     Settlement Agreement and this title.

     SEC. 503. DEFINITIONS.

       In this title:
       (1) Eligible non-pueblo entities.--The term ``Eligible Non-
     Pueblo Entities'' means the Town of Taos, the El Prado Water 
     and Sanitation District, and the New Mexico Department of 
     Finance and Administration Local Government Division on 
     behalf of the Acequia Madre del Rio Lucero y del Arroyo Seco, 
     the Acequia Madre del Prado, the Acequia del Monte, the 
     Acequia Madre del Rio Chiquito, the Upper Ranchitos Mutual 
     Domestic Water Consumers Association, the Upper Arroyo Hondo 
     Mutual Domestic Water Consumers Association, and the Llano 
     Quemado Mutual Domestic Water Consumers Association.
       (2) Enforcement date.--The term ``Enforcement Date'' means 
     the date upon which the Secretary publishes the notice 
     required by section 509(f)(1).
       (3) Mutual-benefit projects.--The term ``Mutual-Benefit 
     Projects'' means the projects described and identified in 
     articles 6 and 10.1 of the Settlement Agreement.
       (4) Partial final decree.--The term ``Partial Final 
     Decree'' means the Decree entered in New Mexico v. Abeyta and 
     New Mexico v. Arellano, Civil Nos. 7896-BB (U.S.6 D.N.M.) and 
     7939-BB (U.S. D.N.M.) (consolidated), for the resolution of 
     the Pueblo's water right

[[Page S8161]]

     claims and which is substantially in the form agreed to by 
     the Parties and attached to the Settlement Agreement as 
     Attachment 5.
       (5) Parties.--The term ``Parties'' means the Parties to the 
     Settlement Agreement, as identified in article 1 of the 
     Settlement Agreement.
       (6) Pueblo.--The term ``Pueblo'' means the Taos Pueblo, a 
     sovereign Indian tribe duly recognized by the United States 
     of America.
       (7) Pueblo lands.--The term ``Pueblo lands'' means those 
     lands located within the Taos Valley to which the Pueblo, or 
     the United States in its capacity as trustee for the Pueblo, 
     holds title subject to Federal law limitations on alienation. 
     Such lands include Tracts A, B, and C, the Pueblo's land 
     grant, the Blue Lake Wilderness Area, and the Tenorio and 
     Karavas Tracts and are generally depicted in Attachment 2 to 
     the Settlement Agreement.
       (8) San juan-chama project.--The term ``San Juan-Chama 
     Project'' means the Project authorized by section 8 of the 
     Act of June 13, 1962 (76 Stat. 96 and 97), and the Act of 
     April 11, 1956 (70 Stat. 105).
       (9) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (10) Settlement agreement.--The term ``Settlement 
     Agreement'' means the contract dated March 31, 2006, between 
     and among--
       (A) the United States, acting solely in its capacity as 
     trustee for Taos Pueblo;
       (B) the Taos Pueblo, on its own behalf;
       (C) the State of New Mexico;
       (D) the Taos Valley Acequia Association and its 55 member 
     ditches;
       (E) the Town of Taos;
       (F) the El Prado Water and Sanitation District; and
       (G) the 12 Taos area Mutual Domestic Water Consumers 
     Associations, as amended to conform with this title.
       (11) State engineer.--The term ``State Engineer'' means the 
     New Mexico State Engineer.
       (12) Taos valley.--The term ``Taos Valley'' means the 
     geographic area depicted in Attachment 4 of the Settlement 
     Agreement.

     SEC. 504. PUEBLO RIGHTS.

       (a) In General.--Those rights to which the Pueblo is 
     entitled under the Partial Final Decree shall be held in 
     trust by the United States on behalf of the Pueblo and shall 
     not be subject to forfeiture, abandonment, or permanent 
     alienation.
       (b) Subsequent Act of Congress.--The Pueblo shall not be 
     denied all or any part of its rights held in trust absent its 
     consent unless such rights are explicitly abrogated by an Act 
     of Congress hereafter enacted.

     SEC. 505. TAOS PUEBLO WATER DEVELOPMENT FUND.

       (a) Establishment.--There is established in the Treasury of 
     the United States a fund to be known as the ``Taos Pueblo 
     Water Development Fund'' (referred to in this section as the 
     ``Fund'') to be used to pay or reimburse costs incurred by 
     the Pueblo for--
       (1) acquiring water rights;
       (2) planning, permitting, designing, engineering, 
     constructing, reconstructing, replacing, rehabilitating, 
     operating, or repairing water production, treatment or 
     delivery infrastructure, on-farm improvements, or wastewater 
     infrastructure;
       (3) restoring, preserving and protecting the Buffalo 
     Pasture, including planning, permitting, designing, 
     engineering, constructing, operating, managing and replacing 
     the Buffalo Pasture Recharge Project;
       (4) administering the Pueblo's water rights acquisition 
     program and water management and administration system; and
       (5) watershed protection and enhancement, support of 
     agriculture, water-related Pueblo community welfare and 
     economic development, and costs related to the negotiation, 
     authorization, and implementation of the Settlement 
     Agreement.
       (b) Management of Fund.--The Secretary shall manage the 
     Fund, invest amounts in the Fund, and make monies available 
     from the Fund for distribution to the Pueblo consistent with 
     the American Indian Trust Fund Management Reform Act of 1994 
     (25 U.S.C. 4001 et seq.) (hereinafter, ``Trust Fund Reform 
     Act''), this title, and the Settlement Agreement.
       (c) Investment of Fund.--Upon the Enforcement Date, the 
     Secretary shall invest amounts in the Fund in accordance 
     with--
       (1) the Act of April 1, 1880 (21 Stat. 70, ch. 41, 25 
     U.S.C. 161);
       (2) the first section of the Act of June 24, 1938 (52 Stat. 
     1037, ch. 648, 25 U.S.C. 162a); and
       (3) the American Indian Trust Fund Management Reform Act of 
     1994 (25 U.S.C. 4001 et seq.).
       (d) Availability of Amounts From Fund.--Upon the 
     Enforcement Date, all monies deposited in the Fund pursuant 
     to section 509(c)(1) or made available from other authorized 
     sources shall be available to the Pueblo for expenditure or 
     withdrawal after the requirements of subsection (e) have been 
     met.
       (e) Expenditures and Withdrawal.--
       (1) Tribal management plan.--
       (A) In general.--The Pueblo may withdraw all or part of the 
     Fund on approval by the Secretary of a tribal management plan 
     as described in the Trust Fund Reform Act.
       (B) Requirements.--In addition to the requirements under 
     the Trust Fund Reform Act, the tribal management plan shall 
     require that the Pueblo spend any funds in accordance with 
     the purposes described in subsection (a).
       (2) Enforcement.--The Secretary may take judicial or 
     administrative action to enforce the requirement that monies 
     withdrawn from the Fund are used for the purposes specified 
     in subsection (a).
       (3) Liability.--If the Pueblo exercises the right to 
     withdraw monies from the Fund, neither the Secretary nor the 
     Secretary of the Treasury shall retain any liability for the 
     expenditure or investment of the monies withdrawn.
       (4) Expenditure plan.--
       (A) In general.--The Pueblo shall submit to the Secretary 
     for approval an expenditure plan for any portions of the 
     funds made available under this title that the Pueblo does 
     not withdraw under paragraph (1)(A).
       (B) Description.--The expenditure plan shall describe the 
     manner in which, and the purposes for which, amounts 
     remaining in the Fund will be used.
       (C) Approval.--On receipt of an expenditure plan under 
     subparagraph (A), the Secretary shall approve the plan if the 
     Secretary determines that the plan is reasonable and 
     consistent with this title.
       (5) Annual report.--The Pueblo shall submit to the 
     Secretary an annual report that describes all expenditures 
     from the Fund during the year covered by the report.
       (f) Amounts Available on Appropriation.--Notwithstanding 
     subsection (d), $15,000,000 of the monies deposited in the 
     Fund--
       (1) shall be available upon appropriation or availability 
     of the funds from other authorized sources for the Pueblo's 
     acquisition of water rights pursuant to Article 5.1.1.2.3 of 
     the Settlement Agreement, the Buffalo Pasture Recharge 
     Project, implementation of the Pueblo's water rights 
     acquisition program and water management and administration 
     system, the design, planning, engineering, permitting or 
     construction of water or wastewater infrastructure eligible 
     for funding under subsection (a), or costs related to the 
     negotiation, authorization, and implementation of the 
     Settlement Agreement, provided that such funds may be 
     expended prior to the Enforcement Date only for activities 
     which are determined by the Secretary to be more cost 
     effective when implemented as early as possible; and
       (2) shall be distributed by the Secretary to the Pueblo on 
     receipt by the Secretary from the Pueblo of a written notice 
     and a Tribal Council resolution that describes the purposes 
     under paragraph (1) for which the monies will be used after a 
     cost-effectiveness determination by the Secretary has been 
     made as described in paragraph (1). The Secretary shall make 
     the determination described in paragraph (1) within a 
     reasonable period of time after receipt of the notice and 
     resolution.
       (g) No Per Capita Distributions.--No portion of the Fund 
     shall be distributed on a per capita basis to members of the 
     Pueblo.

     SEC. 506. MARKETING.

       (a) Pueblo Water Rights.--Subject to the approval of the 
     Secretary in accordance with subsection (e), the Pueblo may 
     market water rights secured to it under the Settlement 
     Agreement and Partial Final Decree, provided that such 
     marketing is in accordance with this section.
       (b) Pueblo Contract Rights to San Juan-Chama Project 
     Water.--Subject to the approval of the Secretary in 
     accordance with subsection (e), the Pueblo may subcontract 
     water made available to the Pueblo under the contract 
     authorized under section 508(b)(1)(A) to third parties to 
     supply water for use within or without the Taos Valley, 
     provided that the delivery obligations under such subcontract 
     are not inconsistent with the Secretary's existing San Juan-
     Chama Project obligations and such subcontract is in 
     accordance with this section.
       (c) Limitation.--
       (1) In general.--Diversion or use of water off Pueblo lands 
     pursuant to Pueblo water rights or Pueblo contract rights to 
     San Juan-Chama Project water shall be subject to and not 
     inconsistent with the same requirements and conditions of 
     State law, any applicable Federal law, and any applicable 
     interstate compact as apply to the exercise of water rights 
     or contract rights to San Juan-Chama Project water held by 
     non-Federal, non-Indian entities, including all applicable 
     State Engineer permitting and reporting requirements.
       (2) Effect on water rights.--Such diversion or use off 
     Pueblo lands under paragraph (1) shall not impair water 
     rights or increase surface water depletions within the Taos 
     Valley.
       (d) Maximum Term.--
       (1) In general.--The maximum term of any water use lease or 
     subcontract, including all renewals, shall not exceed 99 
     years in duration.
       (2) Alienation of rights.--The Pueblo shall not permanently 
     alienate any rights it has under the Settlement Agreement, 
     the Partial Final Decree, and this title.
       (e) Approval of Secretary.--The Secretary shall approve or 
     disapprove any lease or subcontract submitted by the Pueblo 
     for approval within a reasonable period of time after 
     submission, provided that no Secretarial approval shall be 
     required for any water use lease for less than 10 acre-feet 
     per year with a term of less than 7 years, including all 
     renewals.
       (f) No Forfeiture or Abandonment.--The nonuse by a lessee 
     or subcontractor of the Pueblo of any right to which the 
     Pueblo is entitled under the Partial Final Decree shall in no 
     event result in a forfeiture, abandonment, relinquishment, or 
     other loss of all or any part of those rights.

[[Page S8162]]

       (g) No Preemption.--
       (1) In general.--The approval authority of the Secretary 
     provided under subsection (e) shall not amend, construe, 
     supersede, or preempt any State or Federal law, interstate 
     compact, or international treaty that pertains to the 
     Colorado River, the Rio Grande, or any of their tributaries, 
     including the appropriation, use, development, storage, 
     regulation, allocation, conservation, exportation, or 
     quantity of those waters.
       (2) Applicable law.--The provisions of section 2116 of the 
     Revised Statutes (25 U.S.C. 177) shall not apply to any water 
     made available under the Settlement Agreement.
       (h) No Prejudice.--Nothing in this title shall be construed 
     to establish, address, prejudice, or prevent any party from 
     litigating whether or to what extent any applicable State 
     law, Federal law, or interstate compact does or does not 
     permit, govern, or apply to the use of the Pueblo's water 
     outside of New Mexico.

     SEC. 507. MUTUAL-BENEFIT PROJECTS.

       (a) In General.--Upon the Enforcement Date, the Secretary, 
     acting through the Commissioner of Reclamation, shall provide 
     financial assistance in the form of grants on a 
     nonreimbursable basis to Eligible Non-Pueblo Entities to 
     plan, permit, design, engineer, and construct the Mutual-
     Benefit Projects in accordance with the Settlement 
     Agreement--
       (1) to minimize adverse impacts on the Pueblo's water 
     resources by moving future non-Indian ground water pumping 
     away from the Pueblo's Buffalo Pasture; and
       (2) to implement the resolution of a dispute over the 
     allocation of certain surface water flows between the Pueblo 
     and non-Indian irrigation water right owners in the community 
     of Arroyo Seco Arriba.
       (b) Cost-sharing.--
       (1) Federal share.--The Federal share of the total cost of 
     planning, designing, and constructing the Mutual-Benefit 
     Projects authorized in subsection (a) shall be 75 percent and 
     shall be nonreimbursable.
       (2) Non-federal share.--The non-Federal share of the total 
     cost of planning, designing, and constructing the Mutual-
     Benefit Projects shall be 25 percent and may be in the form 
     of in-kind contributions, including the contribution of any 
     valuable asset or service that the Secretary determines would 
     substantially contribute to completing the Mutual-Benefit 
     Projects.
       (3) Additional state contribution.--As a condition of 
     expenditure by the Secretary of the funds made available 
     under section 509(c)(2), the State shall--
       (A) appropriate and make available the non-Federal share 
     described in paragraph (2); and
       (B) agree to provide additional funding associated with the 
     Mutual-Benefit Projects as described in paragraph 10 of the 
     Settlement Agreement.

     SEC. 508. SAN JUAN-CHAMA PROJECT CONTRACTS.

       (a) In General.--Contracts issued under this section shall 
     be in accordance with this title and the Settlement 
     Agreement.
       (b) Contracts for San Juan-Chama Project Water.--
       (1) In general.--The Secretary shall enter into 3 repayment 
     contracts within a reasonable period after the date of 
     enactment of this Act, for the delivery of San Juan-Chama 
     Project water in the following amounts:
       (A) 2,215 acre-feet/annum to the Pueblo.
       (B) 366 acre-feet/annum to the Town of Taos.
       (C) 40 acre-feet/annum to the El Prado Water and Sanitation 
     District.
       (2) Requirements.--Each such contract shall provide that if 
     the conditions precedent set forth in section 509(f)(2) have 
     not been fulfilled by March 31, 2017, the contract shall 
     expire on that date.
       (3) Applicable law.--Public Law 87-483 (76 Stat. 97) 
     applies to the contracts entered into under paragraph (1) and 
     no preference shall be applied as a result of section 504(a) 
     with regard to the delivery or distribution of San Juan-Chama 
     Project water or the management or operation of the San Juan-
     Chama Project.
       (c) Waiver.--With respect to the contract authorized and 
     required by subsection (b)(1)(A) and notwithstanding the 
     provisions of Public Law 87-483 (76 Stat. 96) or any other 
     provision of law--
       (1) the Secretary shall waive the entirety of the Pueblo's 
     share of the construction costs, both principal and the 
     interest, for the San Juan-Chama Project and pursuant to that 
     waiver, the Pueblo's share of all construction costs for the 
     San Juan-Chama Project, inclusive of both principal and 
     interest shall be nonreimbursable; and
       (2) the Secretary's waiver of the Pueblo's share of the 
     construction costs for the San Juan-Chama Project will not 
     result in an increase in the pro rata shares of other San 
     Juan-Chama Project water contractors, but such costs shall be 
     absorbed by the United States Treasury or otherwise 
     appropriated to the Department of the Interior.

     SEC. 509. AUTHORIZATIONS, RATIFICATIONS, CONFIRMATIONS, AND 
                   CONDITIONS PRECEDENT.

       (a) Ratification.--
       (1) In general.--Except to the extent that any provision of 
     the Settlement Agreement conflicts with any provision of this 
     title, the Settlement Agreement is authorized, ratified, and 
     confirmed.
       (2) Amendments.--To the extent amendments are executed to 
     make the Settlement Agreement consistent with this title, 
     such amendments are also authorized, ratified, and confirmed.
       (b) Execution of Settlement Agreement.--To the extent that 
     the Settlement Agreement does not conflict with this title, 
     the Secretary shall execute the Settlement Agreement, 
     including all exhibits to the Settlement Agreement requiring 
     the signature of the Secretary and any amendments necessary 
     to make the Settlement Agreement consistent with this title, 
     after the Pueblo has executed the Settlement Agreement and 
     any such amendments.
       (c) Funding.--
       (1) Taos pueblo water development fund.--
       (A) Mandatory appropriation.--Out of any funds in the 
     Treasury not otherwise appropriated, the Secretary of the 
     Treasury shall transfer to the Secretary for deposit in the 
     Taos Pueblo Water Development Fund established by section 
     505(a), for the period of fiscal years 2011 through 2016, 
     $50,000,000, as adjusted by such amounts as may be required 
     due to increases since April 1, 2007, in construction costs, 
     as indicated by engineering cost indices applicable to the 
     types of construction or rehabilitation involved.
       (B) Authorization of appropriations.--In addition to the 
     amount made available under subparagraph (A), there is 
     authorized to be appropriated to the Secretary for deposit in 
     the Taos Pueblo Water Development Fund established by section 
     505(a) $38,000,000, as adjusted by such amounts as may be 
     required due to increases since April 1, 2007, in 
     construction costs, as indicated by engineering cost indices 
     applicable to the types of construction or rehabilitation 
     involved, for the period of fiscal years 2011 through 2016.
       (2) Mutual-benefit projects funding.--
       (A) Funding.--
       (i) Mandatory appropriation.--Out of any funds in the 
     Treasury not otherwise appropriated, the Secretary of the 
     Treasury shall transfer to the Secretary to provide grants 
     pursuant to section 507 $16,000,000 for the period of fiscal 
     years 2011 through 2016.
       (ii) Authorization of appropriations.--In addition to the 
     amount made available under clause (i), there is authorized 
     to be appropriated to the Secretary to provide grants 
     pursuant to section 507 $20,000,000 for the period of fiscal 
     years 2011 through 2016.
       (B) Deposit in fund.--The Secretary shall deposit the funds 
     made available pursuant to subparagraph (A) into a 
     noninterest-bearing fund, to be known as the ``Taos 
     Settlement Fund'', to be established in the Treasury of the 
     United States so that such funds may be made available on the 
     Enforcement Date as set forth in section 507(a).
       (3) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this title the funds transferred under paragraphs (1)(A) and 
     (2)(A)(i), without further appropriation, to remain available 
     until expended.
       (d) Authority of Secretary.--The Secretary is authorized to 
     enter into such agreements and to take such measures as the 
     Secretary may deem necessary or appropriate to fulfill the 
     intent of the Settlement Agreement and this title.
       (e) Environmental Compliance.--
       (1) Effect of execution of settlement agreement.--The 
     Secretary's execution of the Settlement Agreement shall not 
     constitute a major Federal action under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
       (2) Compliance with environmental laws.--In carrying out 
     this title, the Secretary shall comply with each law of the 
     Federal Government relating to the protection of the 
     environment, including--
       (A) the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.); and
       (B) the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
     seq.).
       (f) Conditions Precedent and Secretarial Finding.--
       (1) In general.--Upon the fulfillment of the conditions 
     precedent described in paragraph (2), the Secretary shall 
     publish in the Federal Register a statement of finding that 
     the conditions have been fulfilled.
       (2) Conditions.--The conditions precedent referred to in 
     paragraph (1) are the following:
       (A) The President has signed into law the Taos Pueblo 
     Indian Water Rights Settlement Act.
       (B) To the extent that the Settlement Agreement conflicts 
     with this title, the Settlement Agreement has been revised to 
     conform with this title.
       (C) The Settlement Agreement, so revised, including waivers 
     and releases pursuant to section 510, has been executed by 
     the Parties and the Secretary prior to the Parties' motion 
     for entry of the Partial Final Decree.
       (D) Congress has fully appropriated or the Secretary has 
     provided from other authorized sources all funds made 
     available under paragraphs (1) and (2) of subsection (c).
       (E) The Legislature of the State of New Mexico has fully 
     appropriated the funds for the State contributions as 
     specified in the Settlement Agreement, and those funds have 
     been deposited in appropriate accounts.
       (F) The State of New Mexico has enacted legislation that 
     amends NMSA 1978, section 72-6-3 to state that a water use 
     due under a water right secured to the Pueblo under the 
     Settlement Agreement or the Partial Final Decree may be 
     leased for a term, including all renewals, not to exceed 99 
     years, provided that this condition shall not be construed to 
     require that said amendment state that any State law based 
     water rights acquired by the Pueblo or by the United States 
     on behalf of the Pueblo may be leased for said term.

[[Page S8163]]

       (G) A Partial Final Decree that sets forth the water rights 
     and contract rights to water to which the Pueblo is entitled 
     under the Settlement Agreement and this title and that 
     substantially conforms to the Settlement Agreement and 
     Attachment 5 thereto has been approved by the Court and has 
     become final and nonappealable.
       (g) Enforcement Date.--The Settlement Agreement shall 
     become enforceable, and the waivers and releases executed 
     pursuant to section 510 and the limited waiver of sovereign 
     immunity set forth in section 511(a) shall become effective, 
     as of the date that the Secretary publishes the notice 
     required by subsection (f)(1).
       (h) Expiration Date.--
       (1) In general.--If all of the conditions precedent 
     described in section (f)(2) have not been fulfilled by March 
     31, 2017, the Settlement Agreement shall be null and void, 
     the waivers and releases executed pursuant to section 510 and 
     the sovereign immunity waivers in section 511(a) shall not 
     become effective, and any unexpended Federal funds, together 
     with any income earned thereon, and title to any property 
     acquired or constructed with expended Federal funds, shall be 
     returned to the Federal Government, unless otherwise agreed 
     to by the Parties in writing and approved by Congress.
       (2) Exception.--Notwithstanding subsection (h)(1) or any 
     other provision of law, except as provided in subsection (i), 
     title to any property acquired or constructed with expended 
     Federal funds made available under section 505(f) shall be 
     retained by the Pueblo.
       (i) Right to Set-off.--If the conditions precedent 
     described in subsection (f)(2) have not been fulfilled by 
     March 31, 2017, and the Settlement Agreement is null and void 
     under subsection (h)(1)--
       (1) the United States shall be entitled to set off any 
     Federal funds made available under section 505(f) that were 
     used for purposes other than the purchase of water rights 
     against any claim of the Pueblo against the United States 
     described in section 510(b) (but excluding any claim retained 
     under section 510(c)); and
       (2) the Pueblo shall have the option either--
       (A) to accept an equitable credit for any water rights 
     acquired with funds made available under section 505(f) 
     against any water rights secured for the Pueblo by the 
     Pueblo, or by the United States on behalf of the Pueblo, in 
     any litigation or future settlement of the case styled New 
     Mexico v. Abeyta and New Mexico v. Arellano, Civil Nos. 7896-
     BB (U.S.6 D.N.M.) and 7939-BB (U.S. D.N.M.) (consolidated); 
     or
       (B) to convey to the United States any water rights 
     acquired with funds made available under section 505(f).
       (j) Extension.--The dates in subsections (h) and (i) and 
     section 510(e) may be extended if the Parties agree that an 
     extension is reasonably necessary.

     SEC. 510. WAIVERS AND RELEASES OF CLAIMS.

       (a) Claims by the Pueblo and the United States.--In return 
     for recognition of the Pueblo's water rights and other 
     benefits, including but not limited to the commitments by 
     non-Pueblo parties, as set forth in the Settlement Agreement 
     and this title, the Pueblo, on behalf of itself and its 
     members, and the United States acting in its capacity as 
     trustee for the Pueblo are authorized to execute a waiver and 
     release of claims against the parties to New Mexico v. Abeyta 
     and New Mexico v. Arellano, Civil Nos. 7896-BB (U.S.6 D.N.M.) 
     and 7939-BB (U.S. D.N.M.) (consolidated) from--
       (1) all claims for water rights in the Taos Valley that the 
     Pueblo, or the United States acting in its capacity as 
     trustee for the Pueblo, asserted, or could have asserted, in 
     any proceeding, including but not limited to in New Mexico v. 
     Abeyta and New Mexico v. Arellano, Civil Nos. 7896-BB (U.S.6 
     D.N.M.) and 7939-BB (U.S. D.N.M.) (consolidated), up to and 
     including the Enforcement Date, except to the extent that 
     such rights are recognized in the Settlement Agreement or 
     this title;
       (2) all claims for water rights, whether for consumptive or 
     nonconsumptive use, in the Rio Grande mainstream or its 
     tributaries that the Pueblo, or the United States acting in 
     its capacity as trustee for the Pueblo, asserted or could 
     assert in any water rights adjudication proceedings except 
     those claims based on Pueblo or United States ownership of 
     lands or water rights acquired after the Enforcement Date, 
     provided that nothing in this paragraph shall prevent the 
     Pueblo or the United States from fully participating in the 
     inter se phase of any such water rights adjudication 
     proceedings;
       (3) all claims for damages, losses or injuries to water 
     rights or claims of interference with, diversion or taking of 
     water (including but not limited to claims for injury to 
     lands resulting from such damages, losses, injuries, 
     interference with, diversion, or taking) in the Rio Grande 
     mainstream or its tributaries or for lands within the Taos 
     Valley that accrued at any time up to and including the 
     Enforcement Date; and
       (4) all claims against the State of New Mexico, its 
     agencies, or employees relating to the negotiation or the 
     adoption of the Settlement Agreement.
       (b) Claims by the Pueblo Against the United States.--The 
     Pueblo, on behalf of itself and its members, is authorized to 
     execute a waiver and release of--
       (1) all claims against the United States, its agencies, or 
     employees relating to claims for water rights in or water of 
     the Taos Valley that the United States acting in its capacity 
     as trustee for the Pueblo asserted, or could have asserted, 
     in any proceeding, including but not limited to in New Mexico 
     v. Abeyta and New Mexico v. Arellano, Civil Nos. 7896-BB 
     (U.S.6 D.N.M.) and 7939-BB (U.S. D.N.M.) (consolidated);
       (2) all claims against the United States, its agencies, or 
     employees relating to damages, losses, or injuries to water, 
     water rights, land, or natural resources due to loss of water 
     or water rights (including but not limited to damages, losses 
     or injuries to hunting, fishing, gathering, or cultural 
     rights due to loss of water or water rights, claims relating 
     to interference with, diversion or taking of water or water 
     rights, or claims relating to failure to protect, acquire, 
     replace, or develop water, water rights or water 
     infrastructure) in the Rio Grande mainstream or its 
     tributaries or within the Taos Valley that first accrued at 
     any time up to and including the Enforcement Date;
       (3) all claims against the United States, its agencies, or 
     employees for an accounting of funds appropriated by the Act 
     of March 4, 1929 (45 Stat. 1562), the Act of March 4, 1931 
     (46 Stat. 1552), the Act of June 22, 1936 (49 Stat. 1757), 
     the Act of August 9, 1937 (50 Stat. 564), and the Act of May 
     9, 1938 (52 Stat. 291), as authorized by the Pueblo Lands Act 
     of June 7, 1924 (43 Stat. 636), and the Pueblo Lands Act of 
     May 31, 1933 (48 Stat. 108), and for breach of trust relating 
     to funds for water replacement appropriated by said Acts that 
     first accrued before the date of enactment of this Act;
       (4) all claims against the United States, its agencies, or 
     employees relating to the pending litigation of claims 
     relating to the Pueblo's water rights in New Mexico v. Abeyta 
     and New Mexico v. Arellano, Civil Nos. 7896-BB (U.S.6 D.N.M.) 
     and 7939-BB (U.S. D.N.M.) (consolidated); and
       (5) all claims against the United States, its agencies, or 
     employees relating to the negotiation, Execution or the 
     adoption of the Settlement Agreement, exhibits thereto, the 
     Final Decree, or this title.
       (c) Reservation of Rights and Retention of Claims.--
     Notwithstanding the waivers and releases authorized in this 
     title, the Pueblo on behalf of itself and its members and the 
     United States acting in its capacity as trustee for the 
     Pueblo retain--
       (1) all claims for enforcement of the Settlement Agreement, 
     the Final Decree, including the Partial Final Decree, the San 
     Juan-Chama Project contract between the Pueblo and the United 
     States, or this title;
       (2) all claims against persons other than the Parties to 
     the Settlement Agreement for damages, losses or injuries to 
     water rights or claims of interference with, diversion or 
     taking of water rights (including but not limited to claims 
     for injury to lands resulting from such damages, losses, 
     injuries, interference with, diversion, or taking of water 
     rights) within the Taos Valley arising out of activities 
     occurring outside the Taos Valley or the Taos Valley Stream 
     System;
       (3) all rights to use and protect water rights acquired 
     after the date of enactment of this Act;
       (4) all rights to use and protect water rights acquired 
     pursuant to State law, to the extent not inconsistent with 
     the Partial Final Decree and the Settlement Agreement 
     (including water rights for the land the Pueblo owns in 
     Questa, New Mexico);
       (5) all claims relating to activities affecting the quality 
     of water including but not limited to any claims the Pueblo 
     might have under the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et 
     seq.) (including but not limited to claims for damages to 
     natural resources), the Safe Drinking Water Act (42 U.S.C. 
     300f et seq.), the Federal Water Pollution Control Act (33 
     U.S.C. 1251 et seq.), and the regulations implementing those 
     Acts;
       (6) all claims relating to damages, losses, or injuries to 
     land or natural resources not due to loss of water or water 
     rights (including but not limited to hunting, fishing, 
     gathering, or cultural rights); and
       (7) all rights, remedies, privileges, immunities, powers, 
     and claims not specifically waived and released pursuant to 
     this title and the Settlement Agreement.
       (d) Effect.--Nothing in the Settlement Agreement or this 
     title--
       (1) affects the ability of the United States acting in its 
     sovereign capacity to take actions authorized by law, 
     including but not limited to any laws relating to health, 
     safety, or the environment, including but not limited to the 
     Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.), 
     the Safe Drinking Water Act (42 U.S.C. 300f et seq.), the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9601 et seq.), the Solid 
     Waste Disposal Act (42 U.S.C. 6901 et seq.), and the 
     regulations implementing such Acts;
       (2) affects the ability of the United States to take 
     actions acting in its capacity as trustee for any other 
     Indian tribe or allottee;
       (3) confers jurisdiction on any State court to--
       (A) interpret Federal law regarding health, safety, or the 
     environment or determine the duties of the United States or 
     other parties pursuant to such Federal law; or
       (B) conduct judicial review of Federal agency action; or
       (4) waives any claim of a member of the Pueblo in an 
     individual capacity that does not derive from a right of the 
     Pueblo.
       (e) Tolling of Claims.--
       (1) In general.--Each applicable period of limitation and 
     time-based equitable defense

[[Page S8164]]

     relating to a claim described in this section shall be tolled 
     for the period beginning on the date of enactment of this Act 
     and ending on the earlier of--
       (A) March 31, 2017; or
       (B) the Enforcement Date.
       (2) Effect of subsection.--Nothing in this subsection 
     revives any claim or tolls any period of limitation or time-
     based equitable defense that expired before the date of 
     enactment of this Act.
       (3) Limitation.--Nothing in this subsection precludes the 
     tolling of any period of limitations or any time-based 
     equitable defense under any other applicable law.

     SEC. 511. INTERPRETATION AND ENFORCEMENT.

       (a) Limited Waiver of Sovereign Immunity.--Upon and after 
     the Enforcement Date, if any Party to the Settlement 
     Agreement brings an action in any court of competent 
     jurisdiction over the subject matter relating only and 
     directly to the interpretation or enforcement of the 
     Settlement Agreement or this title, and names the United 
     States or the Pueblo as a party, then the United States, the 
     Pueblo, or both may be added as a party to any such action, 
     and any claim by the United States or the Pueblo to sovereign 
     immunity from the action is waived, but only for the limited 
     and sole purpose of such interpretation or enforcement, and 
     no waiver of sovereign immunity is made for any action 
     against the United States or the Pueblo that seeks money 
     damages.
       (b) Subject Matter Jurisdiction Not Affected.--Nothing in 
     this title shall be deemed as conferring, restricting, 
     enlarging, or determining the subject matter jurisdiction of 
     any court, including the jurisdiction of the court that 
     enters the Partial Final Decree adjudicating the Pueblo's 
     water rights.
       (c) Regulatory Authority Not Affected.--Nothing in this 
     title shall be deemed to determine or limit any authority of 
     the State or the Pueblo to regulate or administer waters or 
     water rights now or in the future.

     SEC. 512. DISCLAIMER.

       Nothing in the Settlement Agreement or this title shall be 
     construed in any way to quantify or otherwise adversely 
     affect the land and water rights, claims, or entitlements to 
     water of any other Indian tribe.

     SEC. 513. ANTIDEFICIENCY.

       The United States shall not be liable for failure to carry 
     out any obligation or activity authorized to be carried out 
     under this title (including any such obligation or activity 
     under the Agreement) if adequate appropriations are not 
     provided expressly to carry out the purposes of this title by 
     Congress or there are not enough monies available to carry 
     out the purposes of this title in the Reclamation Water 
     Settlements Fund established under section 10501 of Public 
     Law 111-11 or the ``Emergency Fund for Indian Safety and 
     Health'' established by section 601(a) of the Tom Lantos and 
     Henry J. Hyde United States Global Leadership Against HIV/
     AIDS, Tuberculosis, and Malaria Reauthorization Act of 2008 
     (25 U.S.C. 443c(a)).

                 TITLE VI--AAMODT LITIGATION SETTLEMENT

     SEC. 601. SHORT TITLE.

       This title may be cited as the ``Aamodt Litigation 
     Settlement Act''.

     SEC. 602. DEFINITIONS.

       In this title:
       (1) Aamodt case.--The term ``Aamodt Case'' means the civil 
     action entitled State of New Mexico, ex rel. State Engineer 
     and United States of America, Pueblo de Nambe, Pueblo de 
     Pojoaque, Pueblo de San Ildefonso, and Pueblo de Tesuque v. 
     R. Lee Aamodt, et al., No. 66 CV 6639 MV/LCS (D.N.M.).
       (2) Acre-feet.--The term ``acre-feet'' means acre-feet of 
     water per year.
       (3) Authority.--The term ``Authority'' means the Pojoaque 
     Basin Regional Water Authority described in section 9.5 of 
     the Settlement Agreement or an alternate entity acceptable to 
     the Pueblos and the County to operate and maintain the 
     diversion and treatment facilities, certain transmission 
     pipelines, and other facilities of the Regional Water System.
       (4) City.--The term ``City'' means the city of Santa Fe, 
     New Mexico.
       (5) Cost-sharing and system integration agreement.--The 
     term ``Cost-Sharing and System Integration Agreement'' means 
     the agreement, dated August 27, 2009, to be executed by the 
     United States, the State, the Pueblos, the County, and the 
     City that--
       (A) describes the location, capacity, and management 
     (including the distribution of water to customers) of the 
     Regional Water System; and
       (B) allocates the costs of the Regional Water System with 
     respect to--
       (i) the construction, operation, maintenance, and repair of 
     the Regional Water System;
       (ii) rights-of-way for the Regional Water System; and
       (iii) the acquisition of water rights.
       (6) County.--The term ``County'' means Santa Fe County, New 
     Mexico.
       (7) County distribution system.--The term ``County 
     Distribution System'' means the portion of the Regional Water 
     System that serves water customers on non-Pueblo land in the 
     Pojoaque Basin.
       (8) County water utility.--The term ``County Water 
     Utility'' means the water utility organized by the County 
     to--
       (A) receive water distributed by the Authority; and
       (B) provide the water received under subparagraph (A) to 
     customers on non-Pueblo land in the Pojoaque Basin.
       (9) Engineering report.--The term ``Engineering Report'' 
     means the report entitled ``Pojoaque Regional Water System 
     Engineering Report'' dated September 2008 and any amendments 
     thereto, including any modifications which may be required by 
     section 611(d)(2).
       (10) Fund.--The term ``Fund'' means the Aamodt Settlement 
     Pueblos' Fund established by section 615(a).
       (11) Operating agreement.--The term ``Operating Agreement'' 
     means the agreement between the Pueblos and the County 
     executed under section 612(a).
       (12) Operations, maintenance, and replacement costs.--
       (A) In general.--The term ``operations, maintenance, and 
     replacement costs'' means all costs for the operation of the 
     Regional Water System that are necessary for the safe, 
     efficient, and continued functioning of the Regional Water 
     System to produce the benefits described in the Settlement 
     Agreement.
       (B) Exclusion.--The term ``operations, maintenance, and 
     replacement costs'' does not include construction costs or 
     costs related to construction design and planning.
       (13) Pojoaque basin.--
       (A) In general.--The term ``Pojoaque Basin'' means the 
     geographic area limited by a surface water divide (which can 
     be drawn on a topographic map), within which area rainfall 
     and runoff flow into arroyos, drainages, and named 
     tributaries that eventually drain to--
       (i) the Rio Pojoaque; or
       (ii) the 2 unnamed arroyos immediately south; and
       (iii) 2 arroyos (including the Arroyo Alamo) that are north 
     of the confluence of the Rio Pojoaque and the Rio Grande.
       (B) Inclusion.--The term ``Pojoaque Basin'' includes the 
     San Ildefonso Eastern Reservation recognized by section 8 of 
     Public Law 87-231 (75 Stat. 505).
       (14) Pueblo.--The term ``Pueblo'' means each of the pueblos 
     of Nambe, Pojoaque, San Ildefonso, or Tesuque.
       (15) Pueblos.--The term ``Pueblos'' means collectively the 
     Pueblos of Nambe, Pojoaque, San Ildefonso, and Tesuque.
       (16) Pueblo land.--The term ``Pueblo land'' means any real 
     property that is--
       (A) held by the United States in trust for a Pueblo within 
     the Pojoaque Basin;
       (B)(i) owned by a Pueblo within the Pojoaque Basin before 
     the date on which a court approves the Settlement Agreement; 
     or
       (ii) acquired by a Pueblo on or after the date on which a 
     court approves the Settlement Agreement, if the real property 
     is located--
       (I) within the exterior boundaries of the Pueblo, as 
     recognized and conformed by a patent issued under the Act of 
     December 22, 1858 (11 Stat. 374, chapter V); or
       (II) within the exterior boundaries of any territory set 
     aside for the Pueblo by law, executive order, or court 
     decree;
       (C) owned by a Pueblo or held by the United States in trust 
     for the benefit of a Pueblo outside the Pojoaque Basin that 
     is located within the exterior boundaries of the Pueblo as 
     recognized and confirmed by a patent issued under the Act of 
     December 22, 1858 (11 Stat. 374, chapter V); or
       (D) within the exterior boundaries of any real property 
     located outside the Pojoaque Basin set aside for a Pueblo by 
     law, executive order, or court decree, if the land is within 
     or contiguous to land held by the United States in trust for 
     the Pueblo as of January 1, 2005.
       (17) Pueblo water facility.--
       (A) In general.--The term ``Pueblo Water Facility'' means--
       (i) a portion of the Regional Water System that serves only 
     water customers on Pueblo land; and
       (ii) portions of a Pueblo water system in existence on the 
     date of enactment of this Act that serve water customers on 
     non-Pueblo land, also in existence on the date of enactment 
     of this Act, or their successors, that are--

       (I) depicted in the final project design, as modified by 
     the drawings reflecting the completed Regional Water System; 
     and
       (II) described in the Operating Agreement.

       (B) Inclusions.--The term ``Pueblo Water Facility'' 
     includes--
       (i) the barrier dam and infiltration project on the Rio 
     Pojoaque described in the Engineering Report; and
       (ii) the Tesuque Pueblo infiltration pond described in the 
     Engineering Report.
       (18) Regional water system.--
       (A) In general.--The term ``Regional Water System'' means 
     the Regional Water System described in section 611(a).
       (B) Exclusions.--The term ``Regional Water System'' does 
     not include the County or Pueblo water supply delivered 
     through the Regional Water System.
       (19) San juan-chama project.--The term ``San Juan-Chama 
     Project'' means the Project authorized by section 8 of the 
     Act of June 13, 1962 (76 Stat. 96, 97), and the Act of April 
     11, 1956 (70 Stat. 105).
       (20) San juan-chama project act.--The term ``San Juan-Chama 
     Project Act'' means sections 8 through 18 of the Act of June 
     13, 1962 (76 Stat. 96, 97).
       (21) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (22) Settlement agreement.--The term ``Settlement 
     Agreement'' means the agreement among the State, the Pueblos, 
     the United States, the County, and the City dated January 19, 
     2006, and signed by all of

[[Page S8165]]

     the government parties to the Settlement Agreement (other 
     than the United States) on May 3, 2006, as amended in 
     conformity with this title.
       (23) State.--The term ``State'' means the State of New 
     Mexico.

            Subtitle A--Pojoaque Basin Regional Water System

     SEC. 611. AUTHORIZATION OF REGIONAL WATER SYSTEM.

       (a) In General.--The Secretary, acting through the 
     Commissioner of Reclamation, shall plan, design, and 
     construct a regional water system in accordance with the 
     Settlement Agreement, to be known as the ``Regional Water 
     System''--
       (1) to divert and distribute water to the Pueblos and to 
     the County Water Utility, in accordance with the Engineering 
     Report; and
       (2) that consists of--
       (A) surface water diversion facilities at San Ildefonso 
     Pueblo on the Rio Grande; and
       (B) any treatment, transmission, storage and distribution 
     facilities and wellfields for the County Distribution System 
     and Pueblo Water Facilities that are necessary to supply 
     4,000 acre-feet of water within the Pojoaque Basin, unless 
     modified in accordance with subsection (d)(2).
       (b) Final Project Design.--The Secretary shall issue a 
     final project design within 90 days of completion of the 
     environmental compliance described in section 616 for the 
     Regional Water System that--
       (1) is consistent with the Engineering Report; and
       (2) includes a description of any Pueblo Water Facilities.
       (c) Acquisition of Land; Water Rights.--
       (1) Acquisition of land.--Upon request, and in exchange for 
     the funding which shall be provided in section 617(c), the 
     Pueblos shall consent to the grant of such easements and 
     rights-of-way as may be necessary for the construction of the 
     Regional Water System at no cost to the Secretary. To the 
     extent that the State or County own easements or rights-of-
     way that may be used for construction of the Regional Water 
     System, the State or County shall provide that land or 
     interest in land as necessary for construction at no cost to 
     the Secretary. The Secretary shall acquire any other land or 
     interest in land that is necessary for the construction of 
     the Regional Water System.
       (2) Water rights.--The Secretary shall not condemn water 
     rights for purposes of the Regional Water System.
       (d) Conditions for Construction.--
       (1) In general.--The Secretary shall not begin construction 
     of the Regional Water System facilities until the date on 
     which--
       (A) the Secretary executes--
       (i) the Settlement Agreement; and
       (ii) the Cost-Sharing and System Integration Agreement; and
       (B) the State and the County have entered into an agreement 
     with the Secretary to contribute the non-Federal share of the 
     costs of the construction in accordance with the Cost-Sharing 
     and System Integration Agreement.
       (2) Modifications to regional water system.--
       (A) In general.--The State and the County, in agreement 
     with the Pueblos, the City, and other signatories to the 
     Cost-Sharing and System Integration Agreement, may modify the 
     extent, size, and capacity of the County Distribution System 
     as set forth in the Cost-Sharing and System Integration 
     Agreement.
       (B) Effect.--A modification under subparagraph (A)--
       (i) shall not affect implementation of the Settlement 
     Agreement so long as the provisions in section 623 are 
     satisfied; and
       (ii) may result in an adjustment of the State and County 
     cost-share allocation as set forth in the Cost-Sharing and 
     System Integration Agreement.
       (e) Applicable Law.--The Indian Self-Determination and 
     Education Assistance Act (25 U.S.C. 450 et seq.) shall not 
     apply to the design and construction of the Regional Water 
     System.
       (f) Construction Costs.--
       (1) Pueblo water facilities.--
       (A) In general.--Except as provided in subparagraph (B), 
     the expenditures of the Secretary to construct the Pueblo 
     Water Facilities under this section shall not exceed 
     $106,400,000.
       (B) Exception.--The amount described in subparagraph (A) 
     shall be increased or decreased, as appropriate, based on 
     ordinary fluctuations in construction costs since October 1, 
     2006, as determined using applicable engineering cost 
     indices.
       (2) Costs to pueblo.--The costs incurred by the Secretary 
     in carrying out activities to construct the Pueblo Water 
     Facilities under this section shall not be reimbursable to 
     the United States.
       (3) County distribution system.--As a condition of the 
     Secretary using the funds made available pursuant to section 
     617(a)(1), the costs of constructing the County Distribution 
     System shall be a State and local expense pursuant to the 
     Cost-Sharing and System Integration Agreement.
       (g) Initiation of Discussions.--
       (1) In general.--If the Secretary determines that the cost 
     of constructing the Regional Water System exceed the amounts 
     described in the Cost-Sharing and System Integration 
     Agreement for construction of the Regional Water System and 
     would necessitate funds in excess of the amount made 
     available pursuant to section 617(a)(1), the Secretary shall 
     initiate negotiations with the parties to the Cost-Sharing 
     and System Integration Agreement for an agreement regarding 
     non-Federal contributions to ensure that the Regional Water 
     System can be completed as required by section 623(e).
       (2) Joint responsibilities.--The United States shall not 
     bear the entire amount of any cost overrun, nor shall the 
     State be responsible to pay any amounts in addition to the 
     amounts specified in the Cost-Sharing and System Integration 
     Agreement.
       (h) Conveyance of Regional Water System Facilities.--
       (1) In general.--Subject to paragraph (2), on completion of 
     the construction of the Regional Water System as defined in 
     section 623(e), the Secretary, in accordance with the 
     Operating Agreement, shall convey to--
       (A) each Pueblo the portion of any Pueblo Water Facility 
     that is located within the boundaries of the Pueblo, 
     including any land or interest in land located within the 
     boundaries of the Pueblo that is acquired by the United 
     States for the construction of the Pueblo Water Facility;
       (B) the County the County Distribution System, including 
     any land or interest in land acquired by the United States 
     for the construction of the County Distribution System; and
       (C) the Authority any portions of the Regional Water System 
     that remain after making the conveyances under subparagraphs 
     (A) and (B), including any land or interest in land acquired 
     by the United States for the construction of the portions 
     of the Regional Water System.
       (2) Conditions for conveyance.--The Secretary shall not 
     convey any portion of the Regional Water System facilities 
     under paragraph (1) until the date on which--
       (A) construction of the Regional Water System is 
     substantially complete, as defined in section 623(e); and
       (B) the Operating Agreement is executed in accordance with 
     section 612.
       (3) Subsequent conveyance.--On conveyance by the Secretary 
     under paragraph (1), the Pueblos, the County, and the 
     Authority shall not reconvey any portion of the Regional 
     Water System conveyed to the Pueblos, the County, and the 
     Authority, respectively, unless the reconveyance is 
     authorized by an Act of Congress enacted after the date of 
     enactment of this Act.
       (4) Interest of the united states.--On conveyance of a 
     portion of the Regional Water System under paragraph (1), the 
     United States shall have no further right, title, or interest 
     in and to the portion of the Regional Water System conveyed.
       (5) Additional construction.--On conveyance of a portion of 
     the Regional Water System under paragraph (1), the Pueblos, 
     County, or the Authority, as applicable, may, at the expense 
     of the Pueblos, County, or the Authority, construct any 
     additional infrastructure that is necessary to fully use the 
     water delivered by the Regional Water System.
       (6) Taxation.--Conveyance of title to any portion of the 
     Regional Water System, the Pueblo Water Facilities, or the 
     County Distribution System under paragraph (1) does not waive 
     or alter any applicable Federal law prohibiting taxation of 
     such facilities or the underlying land.
       (7) Liability.--
       (A) In general.--Effective on the date of conveyance of any 
     land or facility under this section, the United States shall 
     not be held liable by any court for damages of any kind 
     arising out of any act, omission, or occurrence relating to 
     the land and facilities conveyed, other than damages caused 
     by acts of negligence by the United States, or by employees 
     or agents of the United States, prior to the date of 
     conveyance.
       (B) Tort claims.--Nothing in this section increases the 
     liability of the United States beyond the liability provided 
     in chapter 171 of title 28, United States Code (commonly 
     known as the ``Federal Tort Claims Act'').
       (8) Effect.--Nothing in any transfer of ownership provided 
     or any conveyance thereto as provided in this section shall 
     extinguish the right of any Pueblo, the County, or the 
     Regional Water Authority to the continuous use and benefit of 
     each easement or right of way for the use, operation, 
     maintenance, repair, and replacement of Pueblo Water 
     Facilities, the County Distribution System or the Regional 
     Water System or for wastewater purposes as provided in the 
     Cost-Sharing and System Integration Agreement.

     SEC. 612. OPERATING AGREEMENT.

       (a) In General.--The Pueblos and the County shall submit to 
     the Secretary an executed Operating Agreement for the 
     Regional Water System that is consistent with this title, the 
     Settlement Agreement, and the Cost-Sharing and System 
     Integration Agreement not later than 180 days after the later 
     of--
       (1) the date of completion of environmental compliance and 
     permitting; or
       (2) the date of issuance of a final project design for the 
     Regional Water System under section 611(b).
       (b) Approval.--The Secretary shall approve or disapprove 
     the Operating Agreement within a reasonable period of time 
     after the Pueblos and the County submit the Operating 
     Agreement described in subsection (a) and upon making a 
     determination that the Operating Agreement is consistent with 
     this title, the Settlement Agreement, and the Cost-Sharing 
     and System Integration Agreement.
       (c) Contents.--The Operating Agreement shall include--

[[Page S8166]]

       (1) provisions consistent with the Settlement Agreement and 
     the Cost-Sharing and System Integration Agreement and 
     necessary to implement the intended benefits of the Regional 
     Water System described in those documents;
       (2) provisions for--
       (A) the distribution of water conveyed through the Regional 
     Water System, including a delineation of--
       (i) distribution lines for the County Distribution System;
       (ii) distribution lines for the Pueblo Water Facilities; 
     and
       (iii) distribution lines that serve both--

       (I) the County Distribution System; and
       (II) the Pueblo Water Facilities;

       (B) the allocation of the Regional Water System capacity;
       (C) the terms of use of unused water capacity in the 
     Regional Water System;
       (D) terms of interim use of County unused capacity, in 
     accordance with section 614(d);
       (E) the construction of additional infrastructure and the 
     acquisition of associated rights-of-way or easements 
     necessary to enable any of the Pueblos or the County to fully 
     use water allocated to the Pueblos or the County from the 
     Regional Water System, including provisions addressing when 
     the construction of such additional infrastructure requires 
     approval by the Authority;
       (F) the allocation and payment of annual operation, 
     maintenance, and replacement costs for the Regional Water 
     System, including the portions of the Regional Water System 
     that are used to treat, transmit, and distribute water to 
     both the Pueblo Water Facilities and the County Water 
     Utility;
       (G) the operation of wellfields located on Pueblo land;
       (H) the transfer of any water rights necessary to provide 
     the Pueblo water supply described in section 613(a);
       (I) the operation of the Regional Water System with respect 
     to the water supply, including the allocation of the water 
     supply in accordance with section 3.1.8.4.2 of the Settlement 
     Agreement so that, in the event of a shortage of supply to 
     the Regional Water System, the supply to each of the Pueblos' 
     and to the County's distribution system shall be reduced on a 
     pro rata basis, in proportion to each distribution system's 
     most current annual use; and
       (J) dispute resolution; and
       (3) provisions for operating and maintaining the Regional 
     Water System facilities before and after conveyance under 
     section 611(h), including provisions to--
       (A) ensure that--
       (i) the operation of, and the diversion and conveyance of 
     water by, the Regional Water System is in accordance with the 
     Settlement Agreement;
       (ii) the wells in the Regional Water System are used in 
     conjunction with the surface water supply of the Regional 
     Water System to ensure a reliable firm supply of water to all 
     users of the Regional Water System, consistent with the 
     intent of the Settlement Agreement that surface supplies will 
     be used to the maximum extent feasible;
       (iii) the respective obligations regarding delivery, 
     payment, operation, and management are enforceable; and
       (iv) the County has the right to serve any new water users 
     located on non-Pueblo land in the Pojoaque Basin; and
       (B) allow for any aquifer storage and recovery projects 
     that are approved by the Office of the New Mexico State 
     Engineer.
       (d) Effect.--Nothing in this title precludes the Operating 
     Agreement from authorizing phased or interim operations if 
     the Regional Water System is constructed in phases.

     SEC. 613. ACQUISITION OF PUEBLO WATER SUPPLY FOR REGIONAL 
                   WATER SYSTEM.

       (a) In General.--For the purpose of providing a reliable 
     firm supply of water from the Regional Water System for the 
     Pueblos in accordance with the Settlement Agreement, the 
     Secretary, on behalf of the Pueblos, shall--
       (1) acquire water rights to--
       (A) 302 acre-feet of Nambe reserved water described in 
     section 2.6.2 of the Settlement Agreement; and
       (B) 1141 acre-feet from water acquired by the County for 
     water rights commonly referred to as ``Top of the World'' 
     rights in the Aamodt Case;
       (2) enter into a contract with the Pueblos for 1,079 acre-
     feet in accordance with section 11 of the San Juan-Chama 
     Project Act; and
       (3) by application to the State Engineer, seek approval to 
     divert the water acquired and made available under paragraphs 
     (1) and (2) at the points of diversion for the Regional Water 
     System, consistent with the Settlement Agreement and the 
     Cost-Sharing and System Integration Agreement.
       (b) Forfeiture.--The nonuse of the water supply secured by 
     the Secretary for the Pueblos under subsection (a) shall in 
     no event result in forfeiture, abandonment, relinquishment, 
     or other loss thereof.
       (c) Trust.--The Pueblo water rights secured under 
     subsection (a) shall be held by the United States in trust 
     for the Pueblos.
       (d) Applicable Law.--The water supply made available 
     pursuant to subsection (a)(2) shall be subject to the San 
     Juan-Chama Project Act, and no preference shall be provided 
     to the Pueblos as a result of subsection (c) with regard to 
     the delivery or distribution of San Juan-Chama Project water 
     or the management or operation of the San Juan-Chama Project.
       (e) Contract for San Juan-Chama Project Water Supply.--With 
     respect to the contract for the water supply required by 
     subsection (a)(2), such San Juan-Chama Project contract shall 
     be pursuant to the following terms:
       (1) Waivers.--Notwithstanding the provisions of the San 
     Juan-Chama Project Act, or any other provision of law--
       (A) the Secretary shall waive the entirety of the Pueblos' 
     share of the construction costs for the San Juan-Chama 
     Project, and pursuant to that waiver, the Pueblos' share of 
     all construction costs for the San Juan-Chama Project, 
     inclusive of both principal and interest, due from 1972 to 
     the execution of the contract required by subsection (a)(2), 
     shall be nonreimbursable;
       (B) the Secretary's waiver of each Pueblo's share of the 
     construction costs for the San Juan-Chama Project will not 
     result in an increase in the pro rata shares of other San 
     Juan-Chama Project water contractors, but such costs shall be 
     absorbed by the United States Treasury or otherwise 
     appropriated to the Department of the Interior; and
       (C) the construction costs associated with any water made 
     available from the San Juan-Chama Project which were 
     determined nonreimbursable and nonreturnable pursuant to 
     Public Law No. 88-293, 78 Stat. 171 (March 26, 1964), shall 
     remain nonreimbursable and nonreturnable.
       (2) Termination.--The contract shall provide that it shall 
     terminate only on--
       (A) failure of the United States District Court for the 
     District of New Mexico to enter a final decree for the Aamodt 
     Case by the expiration date described in section 623(b), or 
     within the time period of any extension of that deadline 
     granted by the court; or
       (B) entry of an order by the United States District Court 
     for the District of New Mexico voiding the final decree and 
     Settlement Agreement for the Aamodt Case pursuant to section 
     10.3 of the Settlement Agreement.
       (f) Limitation.--The Secretary shall use the water supply 
     secured under subsection (a) only for the purposes described 
     in the Settlement Agreement.
       (g) Fulfillment of Water Supply Acquisition Obligations.--
     Compliance with subsections (a) through (f) shall satisfy any 
     and all obligations of the Secretary to acquire or secure a 
     water supply for the Pueblos pursuant to the Settlement 
     Agreement.
       (h) Rights of Pueblos in Settlement Agreement Unaffected.--
     Notwithstanding the provisions of subsections (a) through 
     (g), the Pueblos, the County or the Regional Water Authority 
     may acquire any additional water rights to ensure all parties 
     to the Settlement Agreement receive the full allocation of 
     water provided by the Settlement Agreement and nothing in 
     this title amends or modifies the quantities of water 
     allocated to the Pueblos thereunder.

     SEC. 614. DELIVERY AND ALLOCATION OF REGIONAL WATER SYSTEM 
                   CAPACITY AND WATER.

       (a) Allocation of Regional Water System Capacity.--
       (1) In general.--The Regional Water System shall have the 
     capacity to divert from the Rio Grande a quantity of water 
     sufficient to provide--
       (A) up to 4,000 acre-feet of consumptive use of water; and
       (B) the requisite peaking capacity described in--
       (i) the Engineering Report; and
       (ii) the final project design.
       (2) Allocation to the pueblos and county water utility.--Of 
     the capacity described in paragraph (1)--
       (A) there shall be allocated to the Pueblos--
       (i) sufficient capacity for the conveyance of 2,500 acre-
     feet consumptive use; and
       (ii) the requisite peaking capacity for the quantity of 
     water described in clause (i); and
       (B) there shall be allocated to the County Water Utility--
       (i) sufficient capacity for the conveyance of up to 1,500 
     acre-feet consumptive use; and
       (ii) the requisite peaking capacity for the quantity of 
     water described in clause (i).
       (3) Applicable law.--Water shall be allocated to the 
     Pueblos and the County Water Utility under this subsection in 
     accordance with--
       (A) this subtitle;
       (B) the Settlement Agreement; and
       (C) the Operating Agreement.
       (b) Delivery of Regional Water System Water.--The Authority 
     shall deliver water from the Regional Water System--
       (1) to the Pueblos water in a quantity sufficient to allow 
     full consumptive use of up to 2,500 acre-feet per year of 
     water rights by the Pueblos in accordance with--
       (A) the Settlement Agreement;
       (B) the Operating Agreement; and
       (C) this subtitle; and
       (2) to the County water in a quantity sufficient to allow 
     full consumptive use of up to 1,500 acre-feet per year of 
     water rights by the County Water Utility in accordance with--
       (A) the Settlement Agreement;
       (B) the Operating Agreement; and
       (C) this subtitle.
       (c) Additional Use of Allocation Quantity and Unused 
     Capacity.--The Regional Water System may be used to--
       (1) provide for use of return flow credits to allow for 
     full consumptive use of the water allocated in the Settlement 
     Agreement to each of the Pueblos and to the County; and
       (2) convey water allocated to one of the Pueblos or the 
     County Water Utility for the benefit of another Pueblo or the 
     County Water Utility or allow use of unused capacity by each 
     other through the Regional

[[Page S8167]]

     Water System in accordance with an intergovernmental 
     agreement between the Pueblos, or between a Pueblo and County 
     Water Utility, as applicable, if--
       (A) such intergovernmental agreements are consistent with 
     the Operating Agreement, the Settlement Agreement, and this 
     title;
       (B) capacity is available without reducing water delivery 
     to any Pueblo or the County Water Utility in accordance with 
     the Settlement Agreement, unless the County Water Utility or 
     Pueblo contracts for a reduction in water delivery or 
     Regional Water System capacity;
       (C) the Pueblo or County Water Utility contracting for use 
     of the unused capacity or water has the right to use the 
     water under applicable law; and
       (D) any agreement for the use of unused capacity or water 
     provides for payment of the operation, maintenance, and 
     replacement costs associated with the use of capacity or 
     water.
       (d) Interim Use of County Capacity.--In accordance with 
     section 9.6.4 of the Settlement Agreement, the County may use 
     unused capacity and water rights of the County Water Utility 
     to supply water within the County outside of the Pojoaque 
     Basin--
       (1) on approval by the State and the Authority; and
       (2) subject to the issuance of a permit by the New Mexico 
     State Engineer.

     SEC. 615. AAMODT SETTLEMENT PUEBLOS' FUND.

       (a) Establishment of the Aamodt Settlement Pueblos' Fund.--
     There is established in the Treasury of the United States a 
     fund, to be known as the ``Aamodt Settlement Pueblos' Fund,'' 
     consisting of--
       (1) such amounts as are made available to the Fund under 
     section 617(c) or other authorized sources; and
       (2) any interest earned from investment of amounts in the 
     Fund under subsection (b).
       (b) Management of the Fund.--The Secretary shall manage the 
     Fund, invest amounts in the Fund, and make amounts available 
     from the Fund for distribution to the Pueblos in accordance 
     with--
       (1) the American Indian Trust Fund Management Reform Act of 
     1994 (25 U.S.C. 4001 et seq.); and
       (2) this title.
       (c) Investment of the Fund.--On the date on which the 
     waivers become effective as set forth in section 623(d), the 
     Secretary shall invest amounts in the Fund in accordance 
     with--
       (1) the Act of April 1, 1880 (25 U.S.C. 161);
       (2) the first section of the Act of June 24, 1938 (25 
     U.S.C. 162a); and
       (3) the American Indian Trust Fund Management Reform Act of 
     1994 (25 U.S.C. 4001 et seq.).
       (d) Tribal Management Plan.--
       (1) In general.--A Pueblo may withdraw all or part of the 
     Pueblo's portion of the Fund on approval by the Secretary of 
     a tribal management plan as described in the American Indian 
     Trust Fund Management Reform Act of 1994 (25 U.S.C. 4001 et 
     seq.).
       (2) Requirements.--In addition to the requirements under 
     the American Indian Trust Fund Management Reform Act of 1994 
     (25 U.S.C. 4001 et seq.), the tribal management plan shall 
     require that a Pueblo spend any amounts withdrawn from the 
     Fund in accordance with the purposes described in section 
     617(c).
       (3) Enforcement.--The Secretary may take judicial or 
     administrative action to enforce the provisions of any tribal 
     management plan to ensure that any amounts withdrawn from the 
     Fund under an approved tribal management plan are used in 
     accordance with this subtitle.
       (4) Liability.--If a Pueblo or the Pueblos exercise the 
     right to withdraw amounts from the Fund, neither the 
     Secretary nor the Secretary of the Treasury shall retain any 
     liability for the expenditure or investment of the amounts 
     withdrawn.
       (5) Expenditure plan.--
       (A) In general.--The Pueblos shall submit to the Secretary 
     for approval an expenditure plan for any portion of the 
     amounts in the Fund that the Pueblos do not withdraw under 
     this subsection.
       (B) Description.--The expenditure plan shall describe the 
     manner in which, and the purposes for which, amounts 
     remaining in the Fund will be used.
       (C) Approval.--On receipt of an expenditure plan under 
     subparagraph (A), the Secretary shall approve the plan if the 
     Secretary determines that the plan is reasonable and 
     consistent with this title, the Settlement Agreement, and the 
     Cost-Sharing and System Integration Agreement.
       (D) Annual report.--The Pueblos shall submit to the 
     Secretary an annual report that describes all expenditures 
     from the Fund during the year covered by the report.
       (6) No per capita payments.--No part of the principal of 
     the Fund, or the interest or income accruing on the principal 
     shall be distributed to any member of a Pueblo on a per 
     capita basis.
       (7) Availability of amounts from the fund.--
       (A) Approval of settlement agreement.--
       (i) In general.--Except as provided in clause (ii), amounts 
     made available under section 617(c)(1), or from other 
     authorized sources, shall be available for expenditure or 
     withdrawal only after the publication of the statement of 
     findings required by section 623(a)(1).
       (ii) Exception.--Notwithstanding clause (i), the amounts 
     described in that clause may be expended before the date of 
     publication of the statement of findings under section 
     623(a)(1) for any activity that is more cost-effective when 
     implemented in conjunction with the construction of the 
     Regional Water System, as determined by the Secretary.
       (B) Completion of certain portions of regional water 
     system.--Amounts made available under section 617(c)(1) or 
     from other authorized sources shall be available for 
     expenditure or withdrawal only after those portions of the 
     Regional Water System described in section 1.5.24 of the 
     Settlement Agreement have been declared substantially 
     complete by the Secretary.

     SEC. 616. ENVIRONMENTAL COMPLIANCE.

       (a) In General.--In carrying out this subtitle, the 
     Secretary shall comply with each law of the Federal 
     Government relating to the protection of the environment, 
     including--
       (1) the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.); and
       (2) the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
     seq.).
       (b) National Environmental Policy Act.--Nothing in this 
     title affects the outcome of any analysis conducted by the 
     Secretary or any other Federal official under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

     SEC. 617. FUNDING.

       (a) Regional Water System.--
       (1) Funding.--
       (A) Mandatory appropriation.--Subject to paragraph (5), out 
     of any funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary for 
     the planning, design, and construction of the Regional Water 
     System and the conduct of environmental compliance activities 
     under section 616 an amount not to exceed $56,400,000, as 
     adjusted under paragraph (4), for the period of fiscal years 
     2011 through 2016, to remain available until expended.
       (B) Authorization of appropriations.--In addition to the 
     amount made available under subparagraph (A), there is 
     authorized to be appropriated to the Secretary for the 
     planning, design, and construction of the Regional Water 
     System and the conduct of environmental compliance activities 
     under section 616 $50,000,000, as adjusted under paragraph 
     (4), for the period of fiscal years 2011 through 2024.
       (2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this title the funds transferred under paragraph (1)(A), 
     without further appropriation, to remain available until 
     expended.
       (3) Priority of funding.--Of the amounts made available 
     under paragraph (1), the Secretary shall give priority to 
     funding--
       (A) the construction of the San Ildefonso portion of the 
     Regional Water System, consisting of--
       (i) the surface water diversion, treatment, and 
     transmission facilities at San Ildefonso Pueblo; and
       (ii) the San Ildefonso Pueblo portion of the Pueblo Water 
     Facilities; and
       (B) that part of the Regional Water System providing 475 
     acre-feet to Pojoaque Pueblo pursuant to section 2.2 of the 
     Settlement Agreement.
       (4) Adjustment.--The amounts made available under paragraph 
     (1) shall be adjusted annually to account for increases in 
     construction costs since October 1, 2006, as determined using 
     applicable engineering cost indices.
       (5) Limitations.--
       (A) In general.--No amounts shall be made available under 
     paragraph (1) for the construction of the Regional Water 
     System until the date on which the United States District 
     Court for the District of New Mexico issues an order 
     approving the Settlement Agreement.
       (B) Record of decision.--No amounts made available under 
     paragraph (1) shall be expended for construction unless the 
     record of decision issued by the Secretary after completion 
     of an environmental impact statement provides for a preferred 
     alternative that is in substantial compliance with the 
     proposed Regional Water System, as defined in the Engineering 
     Report.
       (b) Acquisition of Water Rights.--
       (1) In general.--Out of any funds in the Treasury not 
     otherwise appropriated, the Secretary of the Treasury shall 
     transfer to the Secretary for the acquisition of the water 
     rights under section 613(a)(1)(B) $5,400,000.
       (2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this title the funds transferred under paragraph (1), without 
     further appropriation, to remain available until expended.
       (c) Aamodt Settlement Pueblos' Fund.--
       (1) Funding.--
       (A) Mandatory appropriations.--Out of any funds in the 
     Treasury not otherwise appropriated, the Secretary of the 
     Treasury shall transfer to the Secretary the following 
     amounts for the period of fiscal years 2011 through 2015:
       (i) $15,000,000, as adjusted according to the CPI Urban 
     Index beginning on October 1, 2006, which shall be allocated 
     to the Pueblos, in accordance with section 2.7.1 of the 
     Settlement Agreement, for the rehabilitation, improvement, 
     operation, maintenance, and replacement of the agricultural 
     delivery facilities, waste water systems, and other water-

[[Page S8168]]

     related infrastructure of the applicable Pueblo.
       (ii) $5,000,000, as adjusted according to the CPI Urban 
     Index beginning on January 1, 2011, and any interest on that 
     amount, which shall be allocated to the Pueblo of Nambe only 
     for the acquisition land, other real property interests, or 
     economic development for the Nambe reserved water rights in 
     accordance with section 613(a)(1)(A).
       (B) Authorization of appropriations.--In addition to the 
     amounts made available under clauses (i) and (ii) of 
     subparagraph (A), respectively, there are authorized to be 
     appropriated to the Secretary for the period of fiscal years 
     2011 through 2024, $37,500,000 to assist the Pueblos in 
     paying the Pueblos' share of the cost of operating, 
     maintaining, and replacing the Pueblo Water Facilities and 
     the Regional Water System.
       (2) Operation, maintenance, and replacement costs.--
       (A) In general.--Prior to conveyance of the Regional Water 
     System pursuant to section 611, the Secretary is authorized 
     to and shall pay any operation, maintenance, and replacement 
     costs associated with the Pueblo Water Facilities or the 
     Regional Water System, up to the amount made available under 
     subparagraph (B).
       (B) Authorization of appropriations.--There is authorized 
     to be appropriated to the Secretary to carry out subparagraph 
     (A) $5,000,000.
       (C) Obligation of federal government after completion.--
     After the date on which construction of the Regional Water 
     System is completed and the amounts required to be deposited 
     in the Aamodt Settlement Pueblos' Fund pursuant to paragraph 
     (1) have been deposited by the Federal Government--
       (i) the Federal Government shall have no obligation to pay 
     for the operation, maintenance, and replacement costs 
     associated with the Pueblo Water Facilities or the Regional 
     Water System; and
       (ii) the authorization for the Secretary to expend funds 
     for the operation, maintenance, and replacement costs of 
     those systems under subparagraph (A) shall expire.
       (3) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this title the funds transferred under paragraphs (1)(A), 
     without further appropriation, to remain available until 
     expended or until the authorization for the Secretary to 
     expend funds pursuant to paragraph (2) expires.

       Subtitle B--Pojoaque Basin Indian Water Rights Settlement

     SEC. 621. SETTLEMENT AGREEMENT AND CONTRACT APPROVAL.

       (a) Approval.--To the extent the Settlement Agreement and 
     the Cost-Sharing and System Integration Agreement do not 
     conflict with this title, the Settlement Agreement and the 
     Cost-Sharing and System Integration Agreement (including any 
     amendments to the Settlement Agreement and the Cost-Sharing 
     and System Integration Agreement that are executed to make 
     the Settlement Agreement or the Cost-Sharing and System 
     Integration Agreement consistent with this title) are 
     authorized, ratified, and confirmed.
       (b) Execution.--To the extent the Settlement Agreement and 
     the Cost-Sharing and System Integration Agreement do not 
     conflict with this title, the Secretary shall execute the 
     Settlement Agreement and the Cost-Sharing and System 
     Integration Agreement (including any amendments that are 
     necessary to make the Settlement Agreement or the Cost-
     Sharing and System Integration Agreement consistent with this 
     title).
       (c) Authorities of the Pueblos.--
       (1) In general.--Each of the Pueblos may enter into leases 
     or contracts to exchange water rights or to forebear 
     undertaking new or expanded water uses for water rights 
     recognized in section 2.1 of the Settlement Agreement for use 
     within the Pojoaque Basin, in accordance with the other 
     limitations of section 2.1.5 of the Settlement Agreement, 
     provided that section 2.1.5 is amended accordingly.
       (2) Approval by secretary.--Consistent with the Settlement 
     Agreement, the Secretary shall approve or disapprove a lease 
     or contract entered into under paragraph (1).
       (3) Prohibition on permanent alienation.--No lease or 
     contract under paragraph (1) shall be for a term exceeding 99 
     years, nor shall any such lease or contract provide for 
     permanent alienation of any portion of the water rights made 
     available to the Pueblos under the Settlement Agreement.
       (4) Applicable law.--Section 2116 of the Revised Statutes 
     (25 U.S.C. 177) shall not apply to any lease or contract 
     entered into under paragraph (1).
       (5) Leasing or marketing of water supply.--The water supply 
     provided on behalf of the Pueblos pursuant to section 
     613(a)(1) may only be leased or marketed by any of the 
     Pueblos pursuant to the intergovernmental agreements 
     described in section 614(c)(2).
       (d) Amendments to Contracts.--The Secretary shall amend the 
     contracts relating to the Nambe Falls Dam and Reservoir that 
     are necessary to use water supplied from the Nambe Falls Dam 
     and Reservoir in accordance with the Settlement Agreement.

     SEC. 622. ENVIRONMENTAL COMPLIANCE.

       (a) Effect of Execution of Settlement Agreement.--The 
     execution of the Settlement Agreement under section 611(b) 
     shall not constitute a major Federal action under the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.).
       (b) Compliance With Environmental Laws.--In carrying out 
     this title, the Secretary shall comply with each law of the 
     Federal Government relating to the protection of the 
     environment, including--
       (1) the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.); and
       (2) the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
     seq.).

     SEC. 623. CONDITIONS PRECEDENT AND ENFORCEMENT DATE.

       (a) Conditions Precedent.--
       (1) In general.--Upon the fulfillment of the conditions 
     precedent described in paragraph (2), the Secretary shall 
     publish in the Federal Register by September 15, 2017, a 
     statement of findings that the conditions have been 
     fulfilled.
       (2) Requirements.--The conditions precedent referred to in 
     paragraph (1) are the conditions that--
       (A) to the extent that the Settlement Agreement conflicts 
     with this subtitle, the Settlement Agreement has been revised 
     to conform with this subtitle;
       (B) the Settlement Agreement, so revised, including waivers 
     and releases pursuant to section 624, has been executed by 
     the appropriate parties and the Secretary;
       (C) Congress has fully appropriated, or the Secretary has 
     provided from other authorized sources, all funds authorized 
     by section 617, with the exception of subsection (a)(1) of 
     that section;
       (D) the Secretary has acquired and entered into appropriate 
     contracts for the water rights described in section 613(a);
       (E) for purposes of section 613(a), permits have been 
     issued by the New Mexico State Engineer to the Regional Water 
     Authority to change the points of diversion to the mainstem 
     of the Rio Grande for the diversion and consumptive use of at 
     least 2,381 acre-feet by the Pueblos as part of the water 
     supply for the Regional Water System, subject to the 
     conditions that--
       (i) the permits shall be free of any condition that 
     materially adversely affects the ability of the Pueblos or 
     the Regional Water Authority to divert or use the Pueblo 
     water supply described in section 613(a), including water 
     rights acquired in addition to those described in section 
     613(a), in accordance with section 613(g); and
       (ii) the Settlement Agreement shall establish the means to 
     address any permit conditions to ensure the ability of the 
     Pueblos to fully divert and consume at least 2,381 acre-feet 
     as part of the water supply for the Regional Water System, 
     including defining the conditions that will not constitute a 
     material adverse affect;
       (F) the State has enacted any necessary legislation and 
     provided any funding that may be required under the 
     Settlement Agreement;
       (G) a partial final decree that sets forth the water rights 
     and other rights to water to which the Pueblos are entitled 
     under the Settlement Agreement and this subtitle and that 
     substantially conforms to the Settlement Agreement has been 
     approved by the United States District Court for the District 
     of New Mexico;
       (H) a final decree that sets forth the water rights for all 
     parties to the Aamodt Case and that substantially conforms to 
     the Settlement Agreement has been approved by the United 
     States District Court for the District of New Mexico; and
       (I) the waivers and releases described in section 624 have 
     been executed.
       (b) Expiration Date.--If all the conditions precedent 
     described in subsection (a)(2) have not been fulfilled by 
     September 15, 2017--
       (1) the Settlement Agreement shall no longer be effective;
       (2) the waivers and releases described in the Settlement 
     Agreement and section 624 shall not be effective;
       (3) any unexpended Federal funds appropriated or made 
     available to carry out the activities authorized by this 
     title, together with any interest earned on those funds, any 
     water rights or contracts to use water, and title to other 
     property acquired or constructed with Federal funds 
     appropriated or made available to carry out the activities 
     authorized by this title shall be returned to the Federal 
     Government, unless otherwise agreed to by the Pueblos and the 
     United States and approved by Congress; and
       (4) except for Federal funds used to acquire or develop 
     property that is returned to the Federal Government under 
     paragraph (3), the United States shall be entitled to set off 
     any Federal funds appropriated or made available to carry out 
     the activities authorized by this title that were expended or 
     withdrawn, together with any interest accrued on those funds, 
     against any claims against the United States--
       (A) relating to water rights in the Pojoaque Basin asserted 
     by any Pueblo that benefitted from the use of expended or 
     withdrawn Federal funds; or
       (B) in any future settlement of the Aamodt Case.
       (c) Enforcement Date.--The Settlement Agreement shall 
     become enforceable beginning on the date on which the United 
     States District Court for the District of New Mexico enters a 
     partial final decree pursuant to subsection (a)(2)(G) and an 
     Interim Administrative Order consistent with the Settlement 
     Agreement.
       (d) Effectiveness of Waivers.--The waivers and releases 
     executed pursuant to section 624 shall become effective as of 
     the date that the Secretary publishes the notice required by 
     subsection (a)(1).

[[Page S8169]]

       (e) Requirements for Determination of Substantial 
     Completion of the Regional Water System.--
       (1) Criteria for substantial completion of regional water 
     system.--Subject to the provisions in section 611(d) 
     concerning the extent, size, and capacity of the County 
     Distribution System, the Regional Water System shall be 
     determined to be substantially completed if the 
     infrastructure has been constructed capable of--
       (A) diverting, treating, transmitting, and distributing a 
     supply of 2,500 acre-feet of water to the Pueblos; and
       (B) diverting, treating, and transmitting the quantity of 
     water specified in the Engineering Report to the County 
     Distribution System.
       (2) Consultation.--On or after June 30, 2021, at the 
     request of 1 or more of the Pueblos, the Secretary shall 
     consult with the Pueblos and confer with the County and the 
     State on whether the criteria in paragraph (1) for 
     substantial completion of the Regional Water System have been 
     met or will be met by June 30, 2024.
       (3) Written determination by secretary.--Not earlier than 
     June 30, 2021, at the request of 1 or more of the Pueblos and 
     after the consultation required by paragraph (2), the 
     Secretary shall--
       (A) determine whether the Regional Water System has been 
     substantially completed based on the criteria described in 
     paragraph (1); and
       (B) submit a written notice of the determination under 
     subparagraph (A) to--
       (i) the Pueblos;
       (ii) the County; and
       (iii) the State.
       (4) Right to review.--
       (A) In general.--A determination by the Secretary under 
     paragraph (3)(A) shall be considered to be a final agency 
     action subject to judicial review by the Decree Court under 
     sections 701 through 706 of title 5, United States Code.
       (B) Failure to make timely determination.--
       (i) In general.--If a Pueblo requests a written 
     determination under paragraph (3) and the Secretary fails to 
     make such a written determination by the date described in 
     clause (ii), there shall be a rebuttable presumption that the 
     failure constitutes agency action unlawfully withheld or 
     unreasonably delayed under section 706 of title 5, United 
     States Code.
       (ii) Date.--The date referred to in clause (i) is the date 
     that is the later of--

       (I) the date that is 180 days after the date of receipt by 
     the Secretary of the request by the Pueblo; and
       (II) June 30, 2023.

       (C) Effect of title.--Nothing in this title gives any 
     Pueblo or Settlement Party the right to judicial review of a 
     determination of the Secretary regarding whether the Regional 
     Water System has been substantially completed except under 
     subchapter II of chapter 5, and chapter 7, of title 5, United 
     States Code (commonly known as the ``Administrative Procedure 
     Act'').
       (5) Right to void final decree.--
       (A) In general.--Not later than June 30, 2024, on a 
     determination by the Secretary, after consultation with the 
     Pueblos, that the Regional Water System is not substantially 
     complete, 1 or more of the Pueblos, or the United States 
     acting on behalf of a Pueblo, shall have the right to notify 
     the Decree Court of the determination.
       (B) Effect.--The Final Decree shall have no force or effect 
     on a finding by the Decree Court that a Pueblo, or the United 
     States acting on behalf of a Pueblo, has submitted proper 
     notification under subparagraph (A).
       (f) Voiding of Waivers.--If the Final Decree is void under 
     subsection (e)(5)--
       (1) the Settlement Agreement shall no longer be effective;
       (2) the waivers and releases executed pursuant to section 
     624 shall no longer be effective;
       (3) any unexpended Federal funds appropriated or made 
     available to carry out the activities authorized by this 
     title, together with any interest earned on those funds, any 
     water rights or contracts to use water, and title to other 
     property acquired or constructed with Federal funds 
     appropriated or made available to carry out the activities 
     authorized by this title shall be returned to the Federal 
     Government, unless otherwise agreed to by the Pueblos and the 
     United States and approved by Congress; and
       (4) except for Federal funds used to acquire or develop 
     property that is returned to the Federal Government under 
     paragraph (3), the United States shall be entitled to set off 
     any Federal funds appropriated or made available to carry out 
     the activities authorized by this title that were expended or 
     withdrawn, together with any interest accrued on those funds, 
     against any claims against the United States--
       (A) relating to water rights in the Pojoaque Basin asserted 
     by any Pueblo that benefitted from the use of expended or 
     withdrawn Federal funds; or
       (B) in any future settlement of the Aamodt Case.
       (g) Extension.--The dates in subsections (a)(1) and (b) may 
     be extended if the parties to the Cost-Sharing and System 
     Integration Agreement agree that an extension is reasonably 
     necessary.

     SEC. 624. WAIVERS AND RELEASES OF CLAIMS.

       (a) Claims by the Pueblos and the United States.--In return 
     for recognition of the Pueblos' water rights and other 
     benefits, including waivers and releases by non-Pueblo 
     parties, as set forth in the Settlement Agreement and this 
     title, the Pueblos, on behalf of themselves and their 
     members, and the United States acting in its capacity as 
     trustee for the Pueblos are authorized to execute a waiver 
     and release of--
       (1) all claims for water rights in the Pojoaque Basin that 
     the Pueblos, or the United States acting in its capacity as 
     trustee for the Pueblos, asserted, or could have asserted, in 
     any proceeding, including the Aamodt Case, up to and 
     including the waiver effectiveness date identified in section 
     623(d), except to the extent that such rights are recognized 
     in the Settlement Agreement or this title;
       (2) all claims for water rights for lands in the Pojoaque 
     Basin and for rights to use water in the Pojoaque Basin that 
     the Pueblos, or the United States acting in its capacity as 
     trustee for the Pueblos, might be able to otherwise assert in 
     any proceeding not initiated on or before the date of 
     enactment of this Act, except to the extent that such rights 
     are recognized in the Settlement Agreement or this title;
       (3) all claims for damages, losses or injuries to water 
     rights or claims of interference with, diversion or taking of 
     water (including claims for injury to land resulting from 
     such damages, losses, injuries, interference with, diversion, 
     or taking) for land within the Pojoaque Basin that accrued at 
     any time up to and including the waiver effectiveness date 
     identified in section 623(d);
       (4) their defenses in the Aamodt Case to the claims 
     previously asserted therein by other parties to the 
     Settlement Agreement;
       (5) all pending and future inter se challenges to the 
     quantification and priority of water rights of non-Pueblo 
     wells in the Pojoaque Basin, except as provided by section 
     2.8 of the Settlement Agreement;
       (6) all pending and future inter se challenges against 
     other parties to the Settlement Agreement;
       (7) all claims for damages, losses, or injuries to water 
     rights or claims of interference with, diversion or taking of 
     water (including claims for injury to land resulting from 
     such damages, losses, injuries, interference with, diversion, 
     or taking of water) attributable to City of Santa Fe pumping 
     of groundwater that has effects on the ground and surface 
     water supplies of the Pojoaque Basin, provided that this 
     waiver shall not be effective by the Pueblo of Tesuque unless 
     there is a water resources agreement executed between the 
     Pueblo of Tesuque and the City of Santa Fe; and
       (8) all claims for damages, losses, or injuries to water 
     rights or claims of interference with, diversion or taking of 
     water (including claims for injury to land resulting from 
     such damages, losses, injuries, interference with, diversion, 
     or taking of water) attributable to County of Santa Fe 
     pumping of groundwater that has effects on the ground and 
     surface water supplies of the Pojoaque Basin.
       (b) Claims by the Pueblos Against the United States.--The 
     Pueblos, on behalf of themselves and their members, are 
     authorized to execute a waiver and release of--
       (1) all claims against the United States, its agencies, or 
     employees, relating to claims for water rights in or water of 
     the Pojoaque Basin or for rights to use water in the Pojoaque 
     Basin that the United States acting in its capacity as 
     trustee for the Pueblos asserted, or could have asserted, in 
     any proceeding, including the Aamodt Case;
       (2) all claims against the United States, its agencies, or 
     employees relating to damages, losses, or injuries to water, 
     water rights, land, or natural resources due to loss of water 
     or water rights (including damages, losses or injuries to 
     hunting, fishing, gathering or cultural rights due to loss of 
     water or water rights; claims relating to interference with, 
     diversion or taking of water or water rights; or claims 
     relating to failure to protect, acquire, replace, or develop 
     water, water rights or water infrastructure) within the 
     Pojoaque Basin that first accrued at any time up to and 
     including the waiver effectiveness date identified in section 
     623(d);
       (3) all claims against the United States, its agencies, or 
     employees for an accounting of funds appropriated by Acts, 
     including the Act of December 22, 1927 (45 Stat. 2), the Act 
     of March 4, 1929 (45 Stat. 1562), the Act of March 26, 1930 
     (46 Stat. 90), the Act of February 14, 1931 (46 Stat. 1115), 
     the Act of March 4, 1931 (46 Stat. 1552), the Act of July 1, 
     1932 (47 Stat. 525), the Act of June 22, 1936 (49 Stat. 
     1757), the Act of August 9, 1937 (50 Stat. 564), and the Act 
     of May 9, 1938 (52 Stat. 291), as authorized by the Pueblo 
     Lands Act of June 7, 1924 (43 Stat. 636), and the Pueblo 
     Lands Act of May 31, 1933 (48 Stat. 108), and for breach of 
     Trust relating to funds for water replacement appropriated by 
     said Acts that first accrued before the date of enactment of 
     this Act;
       (4) all claims against the United States, its agencies, or 
     employees relating to the pending litigation of claims 
     relating to the Pueblos' water rights in the Aamodt Case; and
       (5) all claims against the United States, its agencies, or 
     employees relating to the negotiation, Execution or the 
     adoption of the Settlement Agreement, exhibits thereto, the 
     Partial Final Decree, the Final Decree, or this title.
       (c) Reservation of Rights and Retention of Claims.--
     Notwithstanding the waivers and releases authorized in this 
     title, the Pueblos on behalf of themselves and their members 
     and the United States acting in its capacity as trustee for 
     the Pueblos retain--

[[Page S8170]]

       (1) all claims for enforcement of the Settlement Agreement, 
     the Cost-Sharing and System Integration Agreement, the Final 
     Decree, including the Partial Final Decree, the San Juan-
     Chama Project contract between the Pueblos and the United 
     States or this title;
       (2) all rights to use and protect water rights acquired 
     after the date of enactment of this Act;
       (3) all rights to use and protect water rights acquired 
     pursuant to state law to the extent not inconsistent with the 
     Partial Final Decree, Final Decree, and the Settlement 
     Agreement;
       (4) all claims against persons other than Parties to the 
     Settlement Agreement for damages, losses or injuries to water 
     rights or claims of interference with, diversion or taking of 
     water (including claims for injury to lands resulting from 
     such damages, losses, injuries, interference with, diversion, 
     or taking of water) within the Pojoaque Basin arising out of 
     activities occurring outside the Pojoaque Basin;
       (5) all claims relating to activities affecting the quality 
     of water including any claims the Pueblos may have under the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9601 et seq.) (including 
     claims for damages to natural resources), the Safe Drinking 
     Water Act (42 U.S.C. 300f et seq.), the Federal Water 
     Pollution Control Act (33 U.S.C. 1251 et seq.), and the 
     regulations implementing those laws;
       (6) all claims against the United States relating to 
     damages, losses, or injuries to land or natural resources not 
     due to loss of water or water rights (including hunting, 
     fishing, gathering or cultural rights);
       (7) all claims for water rights from water sources outside 
     the Pojoaque Basin for land outside the Pojoaque Basin owned 
     by a Pueblo or held by the United States for the benefit of 
     any of the Pueblos; and
       (8) all rights, remedies, privileges, immunities, powers 
     and claims not specifically waived and released pursuant to 
     this title or the Settlement Agreement.
       (d) Effect.--Nothing in the Settlement Agreement or this 
     title--
       (1) affects the ability of the United States acting in its 
     sovereign capacity to take actions authorized by law, 
     including any laws relating to health, safety, or the 
     environment, including the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9601 et seq.), the Safe Drinking Water Act (42 U.S.C. 300f et 
     seq.), the Federal Water Pollution Control Act (33 U.S.C. 
     1251 et seq.), the Solid Waste Disposal Act (42 U.S.C. 6901 
     et seq.), and the regulations implementing those laws;
       (2) affects the ability of the United States to take 
     actions acting in its capacity as trustee for any other 
     Indian tribe or allottee; or
       (3) confers jurisdiction on any State court to--
       (A) interpret Federal law regarding health, safety, or the 
     environment or determine the duties of the United States or 
     other parties pursuant to such Federal law; or
       (B) conduct judicial review of Federal agency action.
       (e) Tolling of Claims.--
       (1) In general.--Each applicable period of limitation and 
     time-based equitable defense relating to a claim described in 
     this section shall be tolled for the period beginning on the 
     date of enactment of this Act and ending on June 30, 2021.
       (2) Effect of subsection.--Nothing in this subsection 
     revives any claim or tolls any period of limitation or time-
     based equitable defense that expired before the date of 
     enactment of this Act.
       (3) Limitation.--Nothing in this section precludes the 
     tolling of any period of limitations or any time-based 
     equitable defense under any other applicable law.

     SEC. 625. EFFECT.

       Nothing in this title or the Settlement Agreement affects 
     the land and water rights, claims, or entitlements to water 
     of any Indian tribe, pueblo, or community other than the 
     Pueblos.

     SEC. 626. ANTIDEFICIENCY.

       The United States shall not be liable for any failure to 
     carry out any obligation or activity authorized by this title 
     (including any such obligation or activity under the 
     Settlement Agreement) if adequate appropriations are not 
     provided expressly by Congress to carry out the purposes of 
     this title in the Reclamation Water Settlements Fund 
     established under section 10501 of Public Law 111-11 or the 
     ``Emergency Fund for Indian Safety and Health'' established 
     by section 601(a) of the Tom Lantos and Henry J. Hyde United 
     States Global Leadership Against HIV/AIDS, Tuberculosis, and 
     Malaria Reauthorization Act of 2008 (25 U.S.C. 443c(a)).

             TITLE VII--RECLAMATION WATER SETTLEMENTS FUND

     SEC. 701. MANDATORY APPROPRIATION.

       (a) In General.--Notwithstanding any other provision of 
     law, out of any funds in the Treasury not otherwise 
     appropriated, for each of fiscal years 2012 through 2014, the 
     Secretary of the Treasury shall transfer to the Secretary of 
     the Interior $60,000,000 for deposit in the Reclamation Water 
     Settlements Fund established in section 10501 of Public Law 
     111-11.
       (b) Receipt and Acceptance.--Starting in fiscal year 2012, 
     the Secretary of the Interior shall be entitled to receive, 
     shall accept, and shall use to carry out subtitle B of title 
     X of Public Law 111-11 the funds transferred under subsection 
     (a), without further appropriation, to remain available until 
     expended.

                     TITLE VIII--GENERAL PROVISIONS

        Subtitle A--Unemployment Compensation Program Integrity

     SEC. 801. COLLECTION OF PAST-DUE, LEGALLY ENFORCEABLE STATE 
                   DEBTS.

       (a) Unemployment Compensation Debts.--Section 6402(f) of 
     the Internal Revenue Code of 1986 is amended--
       (1) in the heading, by striking ``Resulting From Fraud'';
       (2) by striking paragraphs (3) and (8) and redesignating 
     paragraphs (4) through (7) as paragraphs (3) through (6), 
     respectively;
       (3) in paragraph (3), as so redesignated--
       (A) in subparagraph (A), by striking ``by certified mail 
     with return receipt'';
       (B) in subparagraph (B), by striking ``due to fraud'' and 
     inserting ``is not a covered unemployment compensation 
     debt'';
       (C) in subparagraph (C), by striking ``due to fraud'' and 
     inserting `` is not a covered unemployment compensation 
     debt''; and
       (4) in paragraph (4), as so redesignated--
       (A) in subparagraph (A)--
       (i) by inserting ``or the person's failure to report 
     earnings'' after ``due to fraud''; and
       (ii) by striking ``for not more than 10 years''; and
       (B) in subparagraph (B)--
       (i) by striking ``due to fraud''; and
       (ii) by striking ``for not more than 10 years''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to refunds payable under section 6402 of the 
     Internal Revenue Code of 1986 on or after the date of the 
     enactment of this Act.

     SEC. 802. REPORTING OF FIRST DAY OF EARNINGS TO DIRECTORY OF 
                   NEW HIRES.

       (a) Addition of Requirement.--Section 453A(b)(1)(A) of the 
     Social Security Act (42 U.S.C. 653a(b)(1)(A)) is amended by 
     inserting ``the date services for remuneration were first 
     performed by the employee,'' after ``of the employee,''.
       (b) Conforming Amendment Regarding Reporting Format and 
     Method.--Section 453A(c) of the Social Security Act (42 
     U.S.C. 653a(c)) is amended by inserting ``, to the extent 
     practicable,'' after ``Each report required by subsection (b) 
     shall''.
       (c) Effective Date.--
       (1) In general.--Subject to paragraph (2), the amendments 
     made by this section shall take effect 6 months after the 
     date of the enactment of this Act.
       (2) Compliance transition period.--If the Secretary of 
     Health and Human Services determines that State legislation 
     (other than legislation appropriating funds) is required in 
     order for a State plan under part D of title IV of the Social 
     Security Act to meet the additional requirements imposed by 
     the amendment made by subsection (a), the plan shall not be 
     regarded as failing to meet such requirements before the 
     first day of the second calendar quarter beginning after the 
     close of the first regular session of the State legislature 
     that begins after the effective date of such amendment. If 
     the State has a 2-year legislative session, each year of the 
     session is deemed to be a separate regular session of the 
     State legislature.

                            Subtitle B--TANF

     SEC. 811. EXTENSION OF THE TEMPORARY ASSISTANCE FOR NEEDY 
                   FAMILIES PROGRAM.

       (a) In General.--Activities authorized by part A of title 
     IV and section 1108(b) of the Social Security Act (other than 
     the Emergency Contingency Fund for State Temporary Assistance 
     for Needy Families Programs established under subsection (c) 
     of section 403 of such Act) shall continue through September 
     30, 2011, in the manner authorized for fiscal year 2010, 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 on a 
     quarterly basis through fiscal year 2011 at the level 
     provided for such activities for the corresponding quarter of 
     fiscal year 2010, except that--
       (1) in the case of healthy marriage promotion and 
     responsible fatherhood grants under section 403(a)(2) of such 
     Act, such grants and payments shall be made in accordance 
     with the amendments made by subsection (b) of this section;
       (2) in the case of supplemental grants under section 
     403(a)(3) of such Act--
       (A) such grants and payments for the period beginning on 
     October 1, 2010, and ending on December 3, 2010, shall not 
     exceed the level provided for such grants and payments under 
     the Continuing Appropriations Act, 2011; and
       (B) such grants and payments for the period beginning on 
     December 4, 2010, and ending on June 30, 2011, shall not 
     exceed the amount equal to the difference between 
     $490,000,000 and such sums as are necessary for amounts 
     obligated under section 403(b) of the Social Security Act on 
     or after October 1, 2010, and before the date of enactment of 
     this Act; and
       (3) in the case of the Contingency Fund for State Welfare 
     Programs established under section 403(b) of such Act, grants 
     and payments may be made in the manner authorized for fiscal 
     year 2010 through fiscal year 2012, in accordance with the 
     amendments made by subsection (c) of this section.
       (b) Healthy Marriage Promotion and Responsible Fatherhood 
     Grants.--Section 403(a)(2) of the Social Security Act (42 
     U.S.C. 603(a)(2)) is amended--

[[Page S8171]]

       (1) in subparagraph (A)--
       (A) in clause (i), by striking ``and (C)'' and inserting 
     ``, (C), and (E)'';
       (B) in clause (ii), in the matter preceding subclause (I), 
     by inserting ``(or, in the case of an entity seeking funding 
     to carry out healthy marriage promotion activities and 
     activities promoting responsible fatherhood, a combined 
     application that contains assurances that the entity will 
     carry out such activities under separate programs and shall 
     not combine any funds awarded to carry out either such 
     activities)'' after ``an application''; and
       (C) in clause (iii), by striking subclause (III) and 
     inserting the following:

       ``(III) Marriage education, marriage skills, and 
     relationship skills programs, that may include parenting 
     skills, financial management, conflict resolution, and job 
     and career advancement.'';

       (2) in subparagraph (C)(i), by striking ``$50,000,000'' and 
     inserting ``$75,000,000'';
       (3) by striking subparagraph (D) and inserting the 
     following:
       ``(D) Appropriation.--Out of any money in the Treasury of 
     the United States not otherwise appropriated, there are 
     appropriated for fiscal year 2011 for expenditure in 
     accordance with this paragraph--
       ``(i) $75,000,000 for awarding funds for the purpose of 
     carrying out healthy marriage promotion activities; and
       ``(ii) $75,000,000 for awarding funds for the purpose of 
     carrying out activities promoting responsible fatherhood.

     If the Secretary makes an award under subparagraph (B)(i) for 
     fiscal year 2011, the funds for such award shall be taken in 
     equal portion from the amounts appropriated under clauses (i) 
     and (ii).''; and
       (4) by adding at the end the following:
       ``(E) Preference.--In awarding funds under this paragraph 
     for fiscal year 2011, the Secretary shall give preference to 
     entities that were awarded funds under this paragraph for any 
     prior fiscal year and that have demonstrated the ability to 
     successfully carry out the programs funded under this 
     paragraph.''.
       (c) Contingency Fund.--Section 403(b)(2) of the Social 
     Security Act (42 U.S.C. 603(b)(2)), as amended by section 
     131(b)(2)(A) of the Continuing Appropriations Act, 2011, is 
     amended--
       (1) by striking ``$506,000,000'' and inserting ``such sums 
     as are necessary for amounts obligated on or after October 1, 
     2010, and before the date of enactment of the Claims 
     Resolution Act of 2010,''; and
       (2) by striking ``, reduced'' and all that follows up to 
     the period.
       (d) Conforming Amendments.--Section 403(a)(3) of the Social 
     Security Act (42 U.S.C. 603(a)(3)), as amended by section 
     131(b)(1) of the Continuing Appropriations Act, 2011, is 
     amended--
       (1) in subparagraph (F)--
       (A) by inserting ``(or portion of a fiscal year)'' after 
     ``a fiscal year''; and
       (B) by inserting ``(or portion of the fiscal year)'' after 
     ``the fiscal year'' each place it appears; and
       (2) by striking clause (ii) of subparagraph (H) and 
     inserting the following:
       ``(ii) subparagraph (G) shall be applied as if `fiscal year 
     2011' were substituted for `fiscal year 2001';''.

     SEC. 812. MODIFICATIONS TO TANF DATA REPORTING.

       (a) In General.--Section 411 of the Social Security Act (42 
     U.S.C. 611) is amended by adding at the end the following new 
     subsection:
       ``(c) Pre-reauthorization State-by-state Reports on 
     Engagement in Additional Work Activities and Expenditures for 
     Other Benefits and Services.--
       ``(1) State reporting requirements.--
       ``(A) Reporting periods and deadlines.--Each eligible State 
     shall submit to the Secretary the following reports:
       ``(i) March 2011 report.--Not later than May 31, 2011, a 
     report for the period that begins on March 1, 2011, and ends 
     on March 31, 2011, that contains the information specified in 
     subparagraphs (B) and (C).
       ``(ii) April-june, 2011 report.--Not later than August 31, 
     2011, a report for the period that begins on April 1, 2011, 
     and ends on June 30, 2011, that contains with respect to the 
     3 months that occur during that period--

       ``(I) the average monthly numbers for the information 
     specified in subparagraph (B); and
       ``(II) the information specified in subparagraph (C).

       ``(B) Engagement in additional work activities.--
       ``(i) With respect to each work-eligible individual in a 
     family receiving assistance during a reporting period 
     specified in subparagraph (A), whether the individual engages 
     in any activities directed toward attaining self-sufficiency 
     during a month occurring in a reporting period, and if so, 
     the specific activities--

       ``(I) that do not qualify as a work activity under section 
     407(d) but that are otherwise reasonably calculated to help 
     the family move toward self-sufficiency; or
       ``(II) that are of a type that would be counted toward the 
     State participation rates under section 407 but for the fact 
     that--

       ``(aa) the work-eligible individual did not engage in 
     sufficient hours of the activity;
       ``(bb) the work-eligible individual has reached the maximum 
     time limit allowed for having participation in the activity 
     counted toward the State's work participation rate; or
       ``(cc) the number of work-eligible individuals engaged in 
     such activity exceeds a limitation under such section.
       ``(ii) Any other information that the Secretary determines 
     appropriate with respect to the information required under 
     clause (i), including if the individual has no hours of 
     participation, the principal reason or reasons for such non-
     participation.
       ``(C) Expenditures on other benefits and services.--
       ``(i) Detailed, disaggregated information regarding the 
     types of, and amounts of, expenditures made by the State 
     during a reporting period specified in subparagraph (A) 
     using--

       ``(I) Federal funds provided under section 403 that are (or 
     will be) reported by the State on Form ACF-196 (or any 
     successor form) under the category of other expenditures or 
     the category of benefits or services provided in accordance 
     with the authority provided under section 404(a)(2); or
       ``(II) State funds expended to meet the requirements of 
     section 409(a)(7) and reported by the State in the category 
     of other expenditures on Form ACF-196 (or any successor 
     form).

       ``(ii) Any other information that the Secretary determines 
     appropriate with respect to the information required under 
     clause (i).
       ``(2) Publication of summary and analysis of engagement in 
     additional activities.--Concurrent with the submission of 
     each report required under paragraph (1)(A), an eligible 
     State shall publish on an Internet website maintained by the 
     State agency responsible for administering the State program 
     funded under this part (or such State-maintained website as 
     the Secretary may approve)--
       ``(A) a summary of the information submitted in the report:
       ``(B) an analysis statement regarding the extent to which 
     the information changes measures of total engagement in work 
     activities from what was (or will be) reported by the State 
     in the quarterly report submitted under subsection (a) for 
     the comparable period; and
       ``(C) a narrative describing the most common activities 
     contained in the report that are not countable toward the 
     State participation rates under section 407.
       ``(3) Application of authority to use sampling.--
     Subparagraph (B) of subsection (a)(1) shall apply to the 
     reports required under paragraph (1) of this subsection in 
     the same manner as subparagraph (B) of subsection (a)(1) 
     applies to reports required under subparagraph (A) of 
     subsection (a)(1).
       ``(4) Secretarial reports to congress.--
       ``(A) March 2011 report.--Not later than June 30, 2011, the 
     Secretary shall submit to Congress a report on the 
     information submitted by eligible States for the March 2011 
     reporting period under paragraph (1)(A)(i). The report shall 
     include a State-by-State summary and analysis of such 
     information, identification of any States with missing or 
     incomplete reports, and recommendations for such 
     administrative or legislative changes as the Secretary 
     determines are necessary to require eligible States to report 
     the information on a recurring basis.
       ``(B) April-june, 2011 report.--Not later than September 
     30, 2011, the Secretary shall submit to Congress a report on 
     the information submitted by eligible States for the April-
     June 2011 reporting period under paragraph (1)(A)(ii). The 
     report shall include a State-by-State summary and analysis of 
     such information, identification of any States with missing 
     or incomplete reports, and recommendations for such 
     administrative or legislative changes as the Secretary 
     determines are necessary to require eligible States to report 
     the information on a recurring basis.
       ``(5) Authority for expeditious implementation.--The 
     requirements of chapter 5 of title 5, United States Code 
     (commonly referred to as the `Administrative Procedure Act') 
     or any other law relating to rulemaking or publication in the 
     Federal Register shall not apply to the issuance of guidance 
     or instructions by the Secretary with respect to the 
     implementation of this subsection to the extent the Secretary 
     determines that compliance with any such requirement would 
     impede the expeditious implementation of this subsection.''.
       (b) Application of Penalty for Failure to File Report.--
       (1) In general.--Section 409(a)(2) of such Act (42 U.S.C. 
     609(a)(2)) is amended--
       (A) by redesignating subparagraphs (A) and (B) as clauses 
     (i) and (ii), respectively,
       (B) by inserting before clause (i) (as redesignated by 
     paragraph (1)), the following:
       ``(A) Quarterly reports.--'';
       (C) in clause (ii) of subparagraph (A) (as redesignated by 
     paragraphs (1) and (2)), by striking ``subparagraph (A)'' and 
     inserting ``clause (i)''; and
       (D) by adding at the end the following:
       ``(B) Report on engagement in additional work activities 
     and expenditures for other benefits and services.--
       ``(i) In general.--If the Secretary determines that a State 
     has not submitted the report required by section 
     411(c)(1)(A)(i) by May 31, 2011, or the report required by 
     section 411(c)(1)(A)(ii) by August 31, 2011, the Secretary 
     shall reduce the grant payable to the State under section 
     403(a)(1) for the immediately succeeding fiscal year by an 
     amount equal to not more than 4 percent of the State family 
     assistance grant.
       ``(ii) Rescission of penalty.--The Secretary shall rescind 
     a penalty imposed on a

[[Page S8172]]

     State under clause (i) with respect to a report required by 
     section 411(c)(1)(A) if the State submits the report not 
     later than--

       ``(I) in the case of the report required under section 
     411(c)(1)(A)(i), June 15, 2011; and
       ``(II) in the case of the report required under section 
     411(c)(1)(A)(ii), September 15, 2011.

       ``(iii) Penalty based on severity of failure.--The 
     Secretary shall impose a reduction under clause (i) with 
     respect to a fiscal year based on the degree of 
     noncompliance.''.
       (2) Application of reasonable cause exception.--Section 
     409(b)(2) of such Act (42 U.S.C. 609(b)(2)) is amended by 
     inserting before the period the following: ``and, with 
     respect to the penalty under paragraph (2)(B) of subsection 
     (a), shall only apply to the extent the Secretary determines 
     that the reasonable cause for failure to comply with a 
     requirement of that paragraph is as a result of a one-time, 
     unexpected event, such as a widespread data system failure or 
     a natural or man-made disaster''.
       (3) Nonapplication of corrective compliance plan 
     provisions.--Section 409(c)(4) of such Act (42 U.S.C. 
     609(c)(4)) is amended by inserting ``(2)(B),'' after 
     ``paragraph''.

  Subtitle C--Customs User Fees; Continued Dumping and Subsidy Offset

     SEC. 821. CUSTOMS USER FEES.

       Section 13031(j)(3) of the Consolidated Omnibus Budget 
     Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)) is amended--
       (1) in subparagraph (A), by striking ``December 10, 2018'' 
     and inserting ``September 30, 2019''; and
       (2) in subparagraph (B)(i), by striking ``November 30, 
     2018'' and inserting ``September 30, 2019''.

     SEC. 822. LIMITATION ON DISTRIBUTIONS RELATING TO REPEAL OF 
                   CONTINUED DUMPING AND SUBSIDY OFFSET.

       Notwithstanding section 1701(b) of the Deficit Reduction 
     Act of 2005 (Public Law 109-171; 120 Stat. 154 (19 U.S.C. 
     1675c note)) or any other provision of law, no payments shall 
     be distributed under section 754 of the Tariff Act of 1930, 
     as in effect on the day before the date of the enactment of 
     such section 1701, with respect to the entries of any goods 
     that are, on the date of the enactment of this Act--
       (1) unliquidated; and
       (2)(A) not in litigation; or
       (B) not under an order of liquidation from the Department 
     of Commerce.

        Subtitle D--Emergency Fund for Indian Safety and Health

     SEC. 831. EMERGENCY FUND FOR INDIAN SAFETY AND HEALTH.

       Section 601 of the Tom Lantos and Henry J. Hyde United 
     States Global Leadership Against HIV/ AIDS, Tuberculosis, and 
     Malaria Reauthorization Act of 2008 (25 U.S.C. 443c) is 
     amended--
       (1) in subsection (b)(1), by striking ``$2,000,000,000'' 
     and inserting ``$1,602,619,000''; and
       (2) in subsection (f)(2)(B), by striking ``50 percent'' and 
     inserting ``not more than $602,619,000''.

            Subtitle E--Rescission of Funds From WIC Program

     SEC. 841. RESCISSION OF FUNDS FROM WIC PROGRAM.

       Notwithstanding any other provision of law, of the amounts 
     made available in appropriations Acts to provide grants to 
     States under the special supplemental nutrition program for 
     women, infants, and children established by section 17 of the 
     Child Nutrition Act of 1966 (42 U.S.C. 1786), $562,000,000 is 
     rescinded.

                     Subtitle F--Budgetary Effects

     SEC. 851. BUDGETARY EFFECTS.

       The budgetary effects of this Act, for the purpose of 
     complying with the Statutory Pay-As-You-Go-Act of 2010, shall 
     be determined by reference to the latest statement titled 
     ``Budgetary Effects of PAYGO Legislation'' for this Act, 
     submitted for printing in the Congressional Record by the 
     Chairman of the Senate Budget Committee, provided that such 
     statement has been submitted prior to the vote on passage.
                                 ______
                                 
  SA 4720. Mr. REID (for Mr. Baucus (for himself and Mr. Dorgan)) 
proposed an amendment to the bill H.R. 4783, may be cited as ``The 
Claims Resettlement Act of 2010''; as follows:

       Amend the title so as to read:
       This Act may be cited as ``The Claims Resettlement Act of 
     2010''.

                          ____________________